Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | May. 12, 2016 | Sep. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Rexnord Corp | ||
Entity Central Index Key | 1,439,288 | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 101,695,697 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,700.5 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 484.6 | $ 370.3 |
Receivables, net | 317.6 | 336 |
Inventories, net | 327.2 | 367.7 |
Other current assets | 46.7 | 53.6 |
Total current assets | 1,176.1 | 1,127.6 |
Property, plant and equipment, net | 397.2 | 417.6 |
Intangible assets, net | 520.9 | 587.7 |
Goodwill | 1,193.8 | 1,202.3 |
Insurance for asbestos claims | 32 | 35 |
Other assets | 34.8 | 39.1 |
Total assets | 3,354.8 | 3,409.3 |
Current liabilities: | ||
Current maturities of debt | 20.2 | 24.3 |
Trade payables | 200.8 | 234.1 |
Compensation and benefits | 54 | 53.9 |
Current portion of pension and postretirement benefit obligations | 5 | 5 |
Other current liabilities | 124.4 | 115.7 |
Total current liabilities | 404.4 | 433 |
Long-term debt | 1,899.9 | 1,915.7 |
Pension and postretirement benefit obligations | 195.5 | 203 |
Deferred income taxes | 186 | 203.3 |
Reserve for asbestos claims | 32 | 35 |
Other liabilities | 49 | 66.6 |
Total liabilities | 2,766.8 | 2,856.6 |
Stockholders' equity: | ||
Preferred stock, $0.01 par value; 10,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued: 101,435,762 at March 31, 2016 and 102,681,964 at March 31, 2015 | 1 | 1 |
Additional paid-in capital | 856.2 | 885.9 |
Retained deficit | (129.6) | (197.5) |
Accumulated other comprehensive loss | (139) | (130.2) |
Treasury stock at cost; 0 and 900,904 shares at March 31, 2016 and March 31, 2015, respectively | 0 | (6.3) |
Total Rexnord stockholders' equity | 588.6 | 552.9 |
Non-controlling interest | (0.6) | (0.2) |
Total stockholders' equity | 588 | 552.7 |
Total liabilities and stockholders' equity | $ 3,354.8 | $ 3,409.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Mar. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 101,435,762 | 102,681,964 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Treasury stock, shares outstanding | 0 | 900,904 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | |||
Net sales | $ 1,923.8 | $ 2,050.2 | $ 2,034.3 |
Cost of sales | 1,258.6 | 1,304 | 1,280.9 |
Gross profit | 665.2 | 746.2 | 753.4 |
Selling, general and administrative expenses | 385.7 | 415.1 | 419.1 |
Restructuring and other similar charges | 34.9 | 12.9 | 8.4 |
Actuarial loss on pension and postretirement benefit obligations | 12.9 | 59.4 | 2.7 |
Amortization of intangible assets | 57.4 | 55.1 | 50.8 |
Income from operations | 174.3 | 203.7 | 272.4 |
Non-operating expense: | |||
Interest expense, net | (91.4) | (87.9) | (109.1) |
Loss on the extinguishment of debt | 0 | 0 | (133.2) |
Other income (expense), net | 3.1 | (7.2) | (15.1) |
Income from continuing operations before income taxes | 86 | 108.6 | 15 |
Provision (benefit) for income taxes | 17.1 | 16.8 | (10) |
Net income from continuing operations | 68.9 | 91.8 | 25 |
(Loss) income from discontinued operations, net of tax | (1.4) | (8) | 4.6 |
Net income | 67.5 | 83.8 | 29.6 |
Non-controlling interest loss | (0.4) | 0 | (0.6) |
Net income attributable to Rexnord | $ 67.9 | $ 83.8 | $ 30.2 |
Net income per share from continuing operations: | |||
Basic (in dollars per share) | $ 0.68 | $ 0.90 | $ 0.25 |
Diluted (in dollars per share) | 0.67 | 0.88 | 0.25 |
Net (loss) income per share from discontinued operations: | |||
Basic (in dollars per share) | (0.01) | (0.08) | 0.05 |
Diluted (in dollars per share) | (0.01) | (0.08) | 0.05 |
Net income per share attributable to Rexnord: | |||
Basic (in dollars per share) | 0.67 | 0.82 | 0.31 |
Diluted (in dollars per share) | $ 0.66 | $ 0.80 | $ 0.30 |
Weighted-average number of shares outstanding (in thousands): | |||
Basic (in shares) | 100,841 | 101,530 | 98,105 |
Effect of dilutive stock options (in shares) | 2,469 | 3,197 | 3,213 |
Diluted (in shares) | 103,310 | 104,727 | 101,318 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Rexnord | $ 67.9 | $ 83.8 | $ 30.2 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (10) | (84.3) | 7.1 |
Unrealized loss on interest rate derivatives, net of tax | (4.3) | (10.9) | (1.7) |
Change in pension and other postretirement defined benefit plans, net of tax | 5.5 | (11.2) | 9.5 |
Other comprehensive (loss) income, net of tax | (8.8) | (106.4) | 14.9 |
Non-controlling interest loss | (0.4) | 0 | (0.6) |
Total comprehensive income (loss) | $ 58.7 | $ (22.6) | $ 44.5 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | [1] | Non-controlling interest | [2] | |
Stock issued during period, shares, new issues | 3,000,000 | |||||||||
Proceeds from issuance or sale of equity | $ 73.8 | |||||||||
Beginning balance at Mar. 31, 2013 | 428.5 | $ 1 | $ 784 | $ (311.5) | $ (38.7) | $ (6.3) | ||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 29.6 | $ 30.2 | $ (0.6) | |||||||
Foreign currency translation adjustments | 7.1 | $ 7.1 | ||||||||
Unrealized loss on interest rate derivatives, net of income tax expense (benefit) | (1.7) | (1.7) | ||||||||
Change in pension and other post retirement defined benefit plans, net of income tax expense (benefit) | 9.5 | 9.5 | ||||||||
Total comprehensive income (loss) | 44.5 | $ 30.2 | $ 14.9 | $ (0.6) | ||||||
Stock-based compensation expense | 7 | 7 | ||||||||
Issuance of equity to non-controlling interest holders | 0.4 | $ 0.4 | ||||||||
Issuance of common stock, net of direct offering costs | [3] | 73.8 | 73.8 | |||||||
Exercise of stock options, net of shares surrendered | 2.1 | 2.1 | ||||||||
Tax benefit on stock option exercises | 5.8 | 5.8 | ||||||||
Ending balance at Mar. 31, 2014 | $ 562.1 | $ 1 | 872.7 | $ (281.3) | $ (23.8) | $ (6.3) | $ (0.2) | |||
Non-controlling interest percentage | 49.00% | |||||||||
Sale of stock, price per share | $ 25.75 | |||||||||
Comprehensive income (loss): | ||||||||||
Net income (loss) | $ 83.8 | $ 83.8 | ||||||||
Foreign currency translation adjustments | (84.3) | $ (84.3) | ||||||||
Unrealized loss on interest rate derivatives, net of income tax expense (benefit) | (10.9) | (10.9) | ||||||||
Change in pension and other post retirement defined benefit plans, net of income tax expense (benefit) | (11.2) | (11.2) | ||||||||
Total comprehensive income (loss) | (22.6) | $ 83.8 | $ (106.4) | |||||||
Stock-based compensation expense | 6.3 | 6.3 | ||||||||
Exercise of stock options, net of shares surrendered | 1.1 | 1.1 | ||||||||
Tax benefit on stock option exercises | 5.8 | 5.8 | ||||||||
Ending balance at Mar. 31, 2015 | 552.7 | $ 1 | 885.9 | $ (197.5) | $ (130.2) | $ (6.3) | $ (0.2) | |||
Comprehensive income (loss): | ||||||||||
Net income (loss) | 67.5 | $ 67.9 | $ (0.4) | |||||||
Foreign currency translation adjustments | (10) | $ (10) | ||||||||
Unrealized loss on interest rate derivatives, net of income tax expense (benefit) | (4.3) | (4.3) | ||||||||
Change in pension and other post retirement defined benefit plans, net of income tax expense (benefit) | 5.5 | 5.5 | ||||||||
Total comprehensive income (loss) | 58.7 | $ 67.9 | $ (8.8) | $ (0.4) | ||||||
Stock-based compensation expense | 7.5 | 7.5 | ||||||||
Common stock repurchased and canceled | [4] | (40) | (40) | |||||||
Exercise of stock options, net of shares surrendered | 5.1 | 5.1 | ||||||||
Cancellation of treasury stock | (6.3) | $ 6.3 | ||||||||
Tax benefit on stock option exercises | 4 | 4 | ||||||||
Ending balance at Mar. 31, 2016 | $ 588 | $ 1 | $ 856.2 | $ (129.6) | $ (139) | $ (0.6) | ||||
Comprehensive income (loss): | ||||||||||
Treasury stock, shares, acquired | 1,552,500 | |||||||||
Treasury stock, value, acquired, cost method | $ 40 | |||||||||
Treasury stock acquired, average cost per share | $ 25.76 | |||||||||
[1] | During fiscal 2016, the Company canceled all outstanding shares held in treasury stock and returned such shares to the status of authorized but unissued shares.. | |||||||||
[2] | Represents a 49% non-controlling interest in a Water Management joint venture. | |||||||||
[3] | On February 5, 2014, the Company closed a public offering of shares of its common stock. In that offering, the Company sold 3,000,000 shares of common stock, at a public offering price of $25.75 per share for aggregate offering proceeds of $73.8 million, net of underwriting discounts and commissions and other direct costs of the offering. | |||||||||
[4] | During fiscal 2016, the Company repurchased and canceled 1,552,500 shares of common stock at a total cost of $40.0 million at an average price of $25.76. Refer to Note 15 for additional information regarding the stock repurchase program. |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Unrealized gain (loss) on interest rate derivatives, income tax expense (benefit) | $ (2.6) | $ (4.2) | $ (1) |
Change in pension and other postretirement - income tax (expense) benefit | $ (3) | $ 4.3 | $ (4.9) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating activities | |||
Net income | $ 67.5 | $ 83.8 | $ 29.6 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 58 | 57.1 | 56.1 |
Amortization of intangible assets | 57.4 | 55.1 | 50.8 |
Amortization of deferred financing costs | 2 | 2.1 | 2.6 |
Non-cash asset impairment | 17.5 | 0 | 0 |
Loss on dispositions of property, plant and equipment | 0.6 | 3 | 2.3 |
Deferred income taxes | (13.9) | (36.9) | (27.6) |
Non-cash charge for disposal of discontinued operations | 1.5 | 9.7 | 0 |
Actuarial loss on pension and post retirement benefit obligations | 12.9 | 59.4 | 2.7 |
Other non-cash charges (credits) | 9.6 | (9.8) | (0.1) |
Loss on extinguishment of debt | 0 | 0 | 133.2 |
Stock-based compensation expense | 7.5 | 6.4 | 7 |
Changes in operating assets and liabilities: | |||
Receivables | 1.5 | 6.1 | (11.3) |
Inventories | 37.7 | (15.2) | (11.3) |
Other assets | 7.5 | 0.1 | (6.8) |
Accounts payable | (32.4) | 3.7 | 26 |
Accruals and other | (15.9) | 21.3 | (62.4) |
Cash provided by operating activities | 219 | 245.9 | 190.8 |
Investing activities | |||
Expenditures for property, plant and equipment | (52.1) | (48.8) | (52.2) |
Acquisitions, net of cash acquired | 1.1 | (138.2) | (112) |
Proceeds from dispositions of property, plant and equipment | 5.8 | 0.5 | 0.4 |
Proceeds from divestiture, net of cash | 0 | 9.2 | 0 |
Cash used for investing activities | (45.2) | (177.3) | (163.8) |
Financing activities | |||
Proceeds from borrowings of debt | 0.9 | 0.1 | 1,935.1 |
Repayments of long-term debt | (19.5) | (19.8) | (1,948.4) |
Proceeds from borrowings of short-term debt | 0 | 11.5 | 13.5 |
Repayments of short-term debt | (5.9) | (16.1) | (165.6) |
Payment of deferred financing fees | (0.9) | 0 | (17.1) |
Payment of tender premium | 0 | 0 | (109.9) |
Proceeds from issuance of common stock, net of direct offering costs | 0 | 0 | 73.8 |
Proceeds from exercise of stock options | 5.1 | 1.1 | 2.1 |
Third party investment in non-controlling interest | 0 | 0 | 0.4 |
Repurchase of Company common stock | (40) | 0 | 0 |
Excess tax benefit on exercise of stock options | 4 | 5.8 | 5.8 |
Cash used for financing activities | (56.3) | (17.4) | (210.3) |
Effect of exchange rate changes on cash and cash equivalents | (3.2) | (19.9) | (1.8) |
Increase (decrease) in cash and cash equivalents | 114.3 | 31.3 | (185.1) |
Cash and cash equivalents at beginning of period | 370.3 | 339 | 524.1 |
Cash and cash equivalents at end of period | $ 484.6 | $ 370.3 | $ 339 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 12 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Description of Business | Basis of Presentation and Description of Business The 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 ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the consolidated financial statements include all adjustments necessary for a fair presentation of the financial position and the results of operations for the periods presented. The Company Rexnord is a growth-oriented, multi-platform industrial company with what it believes to be 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 the privilege of having long-term, valued relationships with market leaders. The Company operates in a disciplined way and its Rexnord Business System (“RBS”) is the operating philosophy. Grounded in the spirit of continuous improvement, RBS creates a scalable, process-based framework that focuses on driving superior customer satisfaction and financial results by targeting world-class operating performance throughout all aspects of its business. The Process & Motion Control platform designs, manufactures, markets and services a comprehensive range of specified, highly-engineered mechanical components used within complex systems where our customers' reliability requirements and costs of failure or downtime are high. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components, and related value-added services. 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 water control and safety, water distribution and drainage, finish plumbing, and site works products for primarily nonresidential buildings and flow control products for water and wastewater treatment infrastructure markets. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior year amounts have been reclassified to conform to the fiscal 2016 presentation. Revenue Recognition Net sales are recorded upon transfer of title and risk of product loss to the customer. Net sales relating to any particular shipment are based upon the amount invoiced for the delivered goods less estimated future rebate payments and sales returns which are based upon the Company’s historical experience. Revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. The value of returned goods during the years ended March 31, 2016 , 2015 and 2014 was approximately 1.0% or less of net sales. Other than a standard product warranty, there are no post-shipment obligations. The Company classifies shipping and handling fees billed to customers as net sales and the corresponding costs are classified as cost of sales in the consolidated statements of operations. Stock-Based Compensation The Company accounts for stock based compensation in accordance with Accounting Standards Codification ("ASC") 718, Accounting for Stock Compensation ("ASC 718"). ASC 718 requires compensation costs related to stock-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. Compensation cost is recognized over the requisite service period, generally as the awards vest. See further discussion of the Company’s equity plans in Note 15 , Stock-Based Compensation. Per Share Data Basic net income (loss) per share from continuing and discontinued operations is computed by dividing net income from continuing operations and (loss) income from discontinued operations, respectively, by the corresponding weighted average number of common shares outstanding for the period. Diluted net income (loss) per share from continuing and discontinued operations 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 fiscal year ended March 31, 2016 , 2015 and 2014 excludes 2,896,640 , 1,268,623 and 1,278,316 shares due to their anti-dilutive effects, respectively. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. Receivables Receivables are stated net of allowances for doubtful accounts of $8.9 million at March 31, 2016 and $16.8 million at March 31, 2015 . The Company evaluates the collectability of its receivables and establishes the allowance for doubtful accounts based on a combination of specific customer circumstances and historical write-off experience. Credit is extended to customers based upon an evaluation of their financial position. Generally, advance payment is not required. Allowances for doubtful accounts established are recorded within Selling, general and administrative expenses within the consolidated statements of operations. Significant Customers The Company’s largest customer accounted for 8.4% , 8.9% and 7.8% of consolidated net sales for the years ended March 31, 2016 , 2015 and 2014 , respectively. Receivables related to this Process & Motion Control industrial distributor at March 31, 2016 and 2015 were $8.1 million and $10.2 million , respectively. Inventories Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at the lower of cost or market. Market is determined based on estimated net realizable values. Approximately 64% of the Company’s total inventories as of both March 31, 2016 and 2015 were valued using the “last-in, first-out” (LIFO) method. All remaining inventories are valued using the “first-in, first-out” (FIFO) method. In some cases, the Company has determined a certain portion of inventories are excess or obsolete. In those cases, the Company writes down the value of those inventories to their net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are more or less favorable than those projected by management, adjustments to established inventory reserves may be required. The total write-down of inventories charged to expense was $9.5 million , $5.2 million and $3.8 million , during fiscal 2016 , 2015 and 2014 , respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is provided using the straight-line method over 10 to 30 years for buildings and improvements, 5 to 10 years for machinery and equipment and 3 to 5 years for computer hardware and software. Where appropriate, the depreciable lives of certain assets may be adjusted to reflect a change in the use of those assets, or depreciation may be accelerated in the case of an eventual asset disposal. Maintenance and repair costs are expensed as incurred. Goodwill and Intangible Assets Intangible assets consist of acquired trademarks and tradenames, customer relationships (including distribution network) and patents. The customer relationships, patents, and certain tradenames are being amortized using the straight-line method over their estimated useful lives of 3 to 20 years, 3 to 15 years, and 3 to 10 years, respectively. Goodwill, trademarks and certain tradenames have indefinite lives and are not amortized. However, the goodwill and intangible assets are tested annually for impairment using a discounted cash flow and market value approach analysis and may be tested more frequently if any triggering events occur that would reduce the recoverability of the asset. Impairment of Long-Lived Assets The carrying value of long-lived assets, including amortizable intangible assets and tangible fixed assets, are evaluated for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment of amortizable intangible assets and tangible fixed assets is generally determined by comparing projected undiscounted cash flows to be generated by the asset, or group of assets, to its carrying value. If impairment is identified, a loss is recorded equal to the excess of the asset's net book value over its fair value, and the cost basis is adjusted. Determination of the fair value requires various estimates including internal cash flow estimates generated from the asset, quoted market prices and appraisals as appropriate to determine fair value. Actual results could vary from these estimates. Product Warranty The Company offers warranties on the sales of certain of its 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 during each of the periods presented (in millions): Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 Balance at beginning of period $ 6.8 $ 8.0 $ 7.7 Acquired obligations — — 0.2 Charged to operations 2.8 1.8 3.9 Claims settled (2.8 ) (3.0 ) (3.8 ) Balance at end of period $ 6.8 $ 6.8 $ 8.0 Income Taxes The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes (“ASC 740”) . Deferred income taxes are provided for future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses, tax credits and other applicable carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be actually paid or recovered. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of continuing operations in the period that includes the date of enactment. The Company regularly reviews its deferred tax assets for recoverability and provides a valuation allowance against its deferred tax assets if, based upon consideration of all positive and negative evidence, the Company determines that it is more-likely-than-not that a portion or all of the deferred tax assets will ultimately not be realized in future tax periods. Such positive and negative evidence would include review of historical earnings and losses, anticipated future earnings, the time period over which the temporary differences and carryforwards are anticipated to reverse and implementation of feasible, prudent tax planning strategies. The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining the Company's worldwide provision for income taxes and recording the related deferred tax assets and liabilities. In the ordinary course of the Company's business, there is inherent uncertainty in quantifying the ultimate tax outcome of all of the numerous transactions and required calculations relating to the Company's tax positions. Accruals for unrecognized tax benefits are provided for in accordance with the requirements of ASC 740 . An unrecognized tax benefit represents the difference between the recognition of benefits related to uncertain tax positions for income tax reporting purposes and financial reporting purposes. The Company has established a reserve for interest and penalties, as applicable, for uncertain tax positions and it is recorded as a component of the overall income tax provision. The Company is subject to periodic income tax examinations by domestic and foreign income tax authorities. Although the outcome of income tax examinations is always uncertain, the Company believes that it has appropriate support for the positions taken on its income tax returns and has adequately provided for potential income tax assessments. Nonetheless, the amounts ultimately settled relating to issues raised by the taxing authorities may differ materially from the amounts accrued for each year. See Note 17 , Income Taxes, for additional information. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, for the fiscal years ending March 31, 2016 , 2015 and 2014 are as follows (in millions): Interest Rate Derivatives Foreign Currency Translation Pension and Postretirement Plans Total Balance April 1, 2013 — 0.7 (39.4 ) (38.7 ) Other comprehensive (loss) income before reclassifications (1.7 ) 7.1 10.5 15.9 Amounts reclassified from accumulated other comprehensive loss — — (1.0 ) (1.0 ) Net current period other comprehensive (loss) income (1.7 ) 7.1 9.5 14.9 Balance at March 31, 2014 (1.7 ) 7.8 (29.9 ) (23.8 ) Other comprehensive loss before reclassifications (10.9 ) (84.3 ) (14.1 ) (109.3 ) Amounts reclassified from accumulated other comprehensive loss — — 2.9 2.9 Net current period other comprehensive loss (10.9 ) (84.3 ) (11.2 ) (106.4 ) Balance at March 31, 2015 $ (12.6 ) $ (76.5 ) $ (41.1 ) $ (130.2 ) Other comprehensive (loss) income before reclassifications (4.3 ) (10.0 ) 6.7 (7.6 ) Amounts reclassified from accumulated other comprehensive loss — — (1.2 ) (1.2 ) Net current period other comprehensive (loss) income (4.3 ) (10.0 ) 5.5 (8.8 ) Balance at March 31, 2016 $ (16.9 ) $ (86.5 ) $ (35.6 ) $ (139.0 ) The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the fiscal years ending March 31, 2016 , 2015 and 2014 (in millions): Pension and postretirement plans Year Ending March 31, 2016 Year Ending March 31, 2015 Year Ending March 31, 2014 Income Statement Line Item Amortization of prior service credit $ (1.9 ) $ (1.7 ) $ (1.7 ) Selling, general and administrative expenses Lump Sum Settlement — 6.5 — Actuarial loss on pension and postretirement benefit obligations Provision (benefit) for income taxes 0.7 (1.9 ) 0.7 Total, net of income taxes $ (1.2 ) $ 2.9 $ (1.0 ) Derivative Financial Instruments The Company is exposed to certain financial risks relating to fluctuations in foreign currency exchange rates and interest rates. The Company selectively uses foreign currency forward contracts and interest rate derivatives to manage its foreign currency and interest rate risks. All hedging transactions are authorized and executed pursuant to defined policies and procedures which prohibit the use of financial instruments for speculative purposes. The Company accounts for derivative instruments in accordance with ASC 815, Accounting for Derivative Instruments and Hedging Activities (“ASC 815”). ASC 815 requires companies to recognize all of its derivative instruments as either assets or liabilities in the balance sheet at fair value. Fair value is defined under ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), 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. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative instrument has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. As of March 31, 2016 and 2015 , the Company had forward-starting interest rate swaps and interest rate caps on its variable rate term debt that are designated and qualify as hedging instruments. For the derivative instruments designated and qualifying as effective hedging instruments under ASC 815, the changes in the fair value of the effective portion of the instrument are recognized in accumulated other comprehensive loss whereas any changes in the fair value of a derivative instrument that is not designated or does not qualify as an effective hedge are recorded in other non-operating expense. See Note 12 , Derivative Financial Instruments , for further information regarding the classification and accounting. Financial Instrument Counterparties The Company is exposed to credit losses in the event of non-performance by counterparties to its financial instruments. The Company anticipates, however, that counterparties will be able to fully satisfy their obligations under these instruments. The Company places cash and temporary investments and foreign currency and interest rate swap and cap contracts with various high-quality financial institutions. Although the Company does not obtain collateral or other security to support these financial instruments, it does periodically evaluate the credit-worthiness of each of its counterparties. Foreign Currency Translation Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. dollar are translated into U.S. dollars using exchange rates at the end of the respective period. Revenues and expenses of such entities are translated at average exchange rates in effect during the respective period. Foreign currency translation adjustments are included as a component of accumulated other comprehensive loss. Currency transaction losses are included in other expense, net in the consolidated statements of operations and totaled $3.0 million , $1.5 million and $3.9 million for the years ended March 31, 2016 , 2015 and 2014 , respectively. Advertising Costs Advertising costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred and amounted to $9.2 million , $10.4 million , and $9.6 million for the years ended March 31, 2016 , 2015 and 2014 , respectively. Research, Development and Engineering Costs Research, development and engineering costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred and for the years ended March 31, 2016 , 2015 and 2014 amounted to the following (in millions): Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 Research and development costs $ 12.4 $ 12.8 $ 13.0 Engineering costs 24.8 26.0 28.4 Total $ 37.2 $ 38.8 $ 41.4 Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and temporary investments, forward currency contracts and trade accounts receivable. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual and interim periods beginning in 2017 with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-09 on its consolidated financial statements. In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02''), which requires management to recognize lease assets and lease liabilities by lessees for all operating leases on the consolidated balance sheets. ASU 2016-02 is effective for the Company's fiscal 2019 and interim periods included therein on a modified retrospective basis. The Company is currently evaluating the impact this guidance will have on its financial statements upon adoption. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") . ASU 2015-17 changes how deferred taxes are classified on the balance sheet, eliminating the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The Company elected to early adopt ASU 2015-17 for fiscal 2016 on a retrospective basis in order to enhance comparability. Accordingly, the Company has presented prior period amounts for deferred income taxes in a manner that conforms to the current period presentation. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"), which removes the requirement to restate prior periods to reflect adjustments made to provisional amounts. Rather, adjustments to the provisional amounts are to be recognized in the reporting period in which the adjustments are recognized. The adjustments related to previous reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. As permitted by ASU 2015-16, the Company elected to early adopt this guidance beginning in the second quarter of fiscal 2016 with no material impact to the financial statements or related notes thereto. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. Under existing guidance, net realizable value is one of several calculations needed to measure inventory at lower of cost or market and as such, the new guidance reduces the complexity in measurement. ASU 2015-11 is effective for the Company's first quarter of fiscal year 2018, with early adoption is permitted, and must be applied prospectively. The Company is currently evaluating the impact of the adoption of this requirement on the consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement of debt issuance costs is not affected by the amendments in this update. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and is required to be applied retrospectively to all prior periods presented. As permitted by ASU 2015-03, the Company elected to early adopt this guidance beginning with the first quarter of fiscal 2016, which resulted in the reclassification of $10.5 million of unamortized debt issuance costs from other assets to long-term debt on the consolidated balance sheets as of March 31, 2015 . Refer to Note 11, Long-Term Debt for additional discussion regarding debt instruments and related classification. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") 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 2019 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 its consolidated financial statements. In the first quarter of 2016 , the Company adopted FASB 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. As this guidance is a prospective change, the significance of ASU 2014-08 for the Company is dependent on any future dispositions or disposals. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The purchase price for the below transactions is stated net of cash acquired and excludes transaction costs. Fiscal Year 2015 On January 12, 2015, the Company acquired Euroflex Transmissions (India) Private Limited ("Euroflex") for a cash purchase price of $76.0 million . Euroflex, based in Hyderabad, India, is a supplier of high performance disc couplings used in power generation, gas compression and industrial process machinery applications. The acquisition of Euroflex added complementary product lines to the Company's existing Process & Motion Control platform. On October 30, 2014 , the Company acquired Tollok S.p.A. ("Tollok"), a supplier of highly engineered shaft locking devices for the power generation and process industries, as well as general industrial applications. The purchase price was $39.2 million , which was comprised of $33.4 million that was paid at closing, $3.4 million of deferred purchase price payable in fiscal 2017 and additional consideration, not to exceed $3.8 million , in 2 years following the acquisition. Cash payments made after the acquisition date are settled in Euros based on prevailing exchange rates at the time of payment. Tollok, based in Ferrara, Italy, added complementary product lines to the Company's existing Process & Motion Control platform. 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 . Green Turtle, based in Toronto, Ontario, and Charlotte, North Carolina, is a manufacturer of branded fiberglass oil and grease separators and traps. This acquisition broadened the product portfolio of the Company's existing Water Management platform. The Company's results of operations include the acquired operations subsequent to the respective acquisition dates. The acquisitions of Green Turtle, Tollok and Euroflex were not material to the Company’s consolidated financial statements. Pro-forma results of operations and certain other U.S. GAAP disclosures related to the acquisitions during the fiscal year ended March 31, 2015 have not been presented because they are not significant to the Company's consolidated statements of operations and financial position. The fiscal 2015 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 respective 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. During the twelve months ended March 31, 2016, the Company adjusted the purchase price allocation by reducing goodwill by $4.8 million in connection with the finalization of Euroflex and Tollok acquisition date working capital, refinement of the fair value assigned to acquired intangible assets and establishment of income tax positions within the opening balance sheet. After incorporating the changes described above, the purchase price allocation resulted in non-tax deductible goodwill of $69.9 million , other intangible assets of $71.4 million and other net assets of $1.6 million . Fiscal Year 2014 On December 16, 2013 , the Company acquired Precision Gear Holdings, LLC (“PGH”) for a total cash purchase price of $77.1 million . 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 product portfolio. On August 30, 2013 , the Company acquired certain assets of L.W. Gemmell ("LWG") for a total cash purchase price of $8.2 million . LWG, based in Australia, is a distributor of non-residential plumbing products. A portion of LWG's historical sales were from existing 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 . 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 . 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 global presence. The Company's results of operations include the acquired operations subsequent to the respective acquisition dates. The acquisitions of PGH, LWG, Micro Precision and Klamflex were not material to the Company’s 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 the fiscal year ended March 31, 2014 have not been presented because they are not significant to the Company's 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 respective acquisition dates. The excess of the acquisition purchase prices over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill. During fiscal 2015, the Company adjusted the preliminary allocations for the Micro Precision and PGH purchase prices in connection with finalizing the valuation of each businesses' tradenames and the time period each tradename will be utilized by the Company post-acquisition. The opening balance sheet has been adjusted to reflect these changes, which included an increase to goodwill of $1.8 million and a net decrease to intangible assets of $1.8 million . The amortization expense recognized in historical periods was not materially impacted as a result of the adjustments to the purchase price allocations. The final aggregate purchase price allocation of these acquisitions resulted in goodwill of $26.7 million ( $24.6 million of tax deductible goodwill), other intangible assets of $23.3 million , property, plant and equipment of $36.7 million and other net assets of $25.3 million . 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 consolidated financial statements. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations As indicated in Note 2 Significant Accounting Policies, the Company adopted ASU 2014-08 effective April 1, 2015. Prior to the adoption of this guidance, in fiscal 2015 the Company ceased all operations related to its former Mill Products business, which conducted its operations in the United States and Australia and was a component of the Process & Motion Control operating segment. As a result, the Company met the criteria to present this business as a discontinued operation in accordance with the authoritative guidance. Accordingly, the results of operations of the Mill Products business are reported as discontinued operations in the consolidated statements of operations for all periods presented. The corresponding assets and liabilities related to the prior period were reclassified in accordance with authoritative literature and classified as assets held for sale for all periods presented in the consolidated balance sheets. The consolidated statements of cash flows for the fiscal years ended March 31, 2016, 2015 and 2014 have not been adjusted to separately disclose cash flows related to discontinued operations. The following table summarizes the results of the Mill Products business included within (loss) income from discontinued operations, net of tax on the consolidated statements of operations (in millions): Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Net sales $ — $ 34.1 $ 47.7 (Loss) income from operations before income taxes (2.2 ) (10.9 ) 7.2 (Benefit) provision for income taxes (0.8 ) (2.9 ) 2.6 Net (loss) income from discontinued operations $ (1.4 ) $ (8.0 ) $ 4.6 Net (loss) income per share from discontinued operations: Basic $ (0.01 ) $ (0.08 ) $ 0.05 Diluted $ (0.01 ) $ (0.08 ) $ 0.05 In exiting the Mill Products business in fiscal 2015 , the Company agreed to sell certain assets associated with the business for aggregate cash consideration of approximately $9.2 million and the remaining assets and liabilities of the discontinued operation were adjusted to reflect their net realizable value. As of March 31, 2015 , included as Other current assets on the consolidated balance sheets was $2.6 million of long-lived assets. The exit of Mill Products resulted in the Company recording a net charge of $9.7 million , consisting of a $3.8 million impairment loss associated with property, plant and equipment, $4.1 million impairment of goodwill allocated to the discontinued operation and other exit related costs of $1.8 million . During fiscal 2016, the Company disposed most of the assets originally classified as Other current assets on the consolidated balance sheets. However, after actively marketing the assets and not being able to find a buyer, the remaining assets were written off, contributing to the loss from discontinued operations noted above. |
Restructuring and Other Similar
Restructuring and Other Similar Charges | 12 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Similar Charges | Restructuring and Other Similar Charges During fiscal 2016 , the Company continued to execute various restructuring actions. These initiatives were implemented to drive efficiencies and 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 related manufacturing facilities, equipment and intangible 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, potential 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 and other similar costs incurred during the years ended March 31, 2016 , 2015 and 2014 by classification of operating segment (in millions): Year Ended March 31, 2016 Process & Motion Control Water Management Corporate Consolidated Severance costs $ 10.8 $ 4.2 $ 0.3 $ 15.3 Asset impairment charges (1) 1.0 16.5 — $ 17.5 Lease termination and other costs 0.5 1.6 — 2.1 Total restructuring and other similar costs $ 12.3 $ 22.3 $ 0.3 $ 34.9 Year Ended March 31, 2015 Process & Motion Control Water Management Corporate Consolidated Severance costs $ 7.6 $ 3.3 $ — $ 10.9 Lease termination and other costs 1.2 0.8 — 2.0 Total restructuring and other similar costs $ 8.8 $ 4.1 $ — $ 12.9 Year Ended March 31, 2014 Process & Motion Control Water Management Corporate Consolidated Severance costs $ 3.3 $ 2.0 $ 0.8 $ 6.1 Lease termination and other costs 1.6 0.7 — 2.3 Total restructuring and other similar costs $ 4.9 $ 2.7 $ 0.8 $ 8.4 Restructuring Costs To-date (Period from April 1, 2013 to March 31, 2016) Process & Motion Control Water Management Corporate Consolidated Severance costs $ 21.7 $ 9.5 $ 1.1 $ 32.3 Asset impairment charges 1.0 16.5 — $ 17.5 Lease termination and other costs 3.3 3.1 — 6.4 Total restructuring and other similar costs $ 26.0 $ 29.1 $ 1.1 $ 56.2 (1) In connection with the fiscal 2016 footprint optimization initiatives and the decision to exit the non-strategic Rodney Hunt® Fontaine® (“RHF”) flow control gate product line, the Company recognized impairment charges associated with related fixed assets and intangible assets of $6.6 million and $10.9 million , respectively. The impairment of fixed assets was determined utilizing independent appraisals of the assets, classified as Level 3 inputs within the Fair Value hierarchy. Refer to Note 13 for additional information. Following the Company’s decision to exit the RHF product line, the Company deemed certain intangible assets associated with the RHF tradename, customer relationships and patents had no future value resulting in impairment charges of $10.4 million , $0.3 million and $0.2 million , respectively. The Company evaluated the requirements for held-for-sale and discontinued operations presentation in connection with the decision to exit its flow-control gate product line and determined the product line did not meet the definition provided within the authoritative literature of held for sale or discontinued operations. Pre-tax loss from operations associated with this non-strategic exit of the RHF product-line were as follows in each of the last three fiscal years: Years ending March 31, Pre-tax Loss Description 2016 $ (43.1 ) Includes asset impairments described above and other restructuring charges (primarily severance costs) of $16.5 million and $2.9 million, respectively 2015 (14.0 ) Includes other restructuring charges (primarily severance costs) of $2.2 million 2014 (10.1 ) Includes other restructuring charges of (primarily severance costs) $0.3 million The following table summarizes the activity in the Company's accrual for restructuring costs for the fiscal years ended March 31, 2016 and 2015 (in millions): Severance Costs Asset impairment charges Lease Termination and Other Costs Total Accrued Restructuring Costs, March 31, 2014 $ 3.4 $ — $ 0.4 $ 3.8 Charges 10.9 — 2.0 12.9 Cash payments (7.6 ) — (1.3 ) (8.9 ) Non-cash charges — — (0.8 ) (0.8 ) Accrued Restructuring Costs, March 31, 2015 (1) 6.7 — 0.3 7.0 Charges 15.3 17.5 2.1 34.9 Cash payments (11.5 ) — (2.1 ) (13.6 ) Non-cash charges — (17.5 ) — (17.5 ) Accrued Restructuring Costs, March 31, 2016 (1) $ 10.5 $ — $ 0.3 $ 10.8 (1) The restructuring accrual is included in Other current liabilities on the consolidated balance sheets. |
Recovery Under Continued Dumpin
Recovery Under Continued Dumping and Subsidy Offset Act ("CDSOA") | 12 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Recovery Under Continued Dumping and Subsidy Offset Act (“CDSOA”) | Recovery Under Continued Dumping and Subsidy Offset Act (“CDSOA”) The Company, as a producer of ball bearing products in the U.S., participated in the distribution of monies collected by Customs and Border Protection (“CBP”) from anti-dumping cases under the CDSOA. Through its participation the Company provided relevant information to CBP regarding historical manufacturing, personnel and development costs for previous calendar years. In February 2006, U.S. legislation was enacted that ended CDSOA distributions to U.S. manufacturers for imports covered by anti-dumping duty orders entering the U.S. after September 30, 2007. Because monies were collected by CBP until September 30, 2007 and for prior year entries, the Company has received periodic recoveries. In connection with this program, beginning in 2006, CBP began to withhold amounts that would have otherwise been distributed as a result of pending litigation challenging past and future distributions and the administrative operation of the law. Beginning in fiscal 2013, CBP began to distribute these withheld funds to domestic producers. In connection with the distribution of these withheld funds, the Company recorded $8.4 million of income during fiscal 2016 . The Company did no t receive any distributions in fiscal 2015 or 2014 . CDSOA recoveries are recorded within Other income (expense), net on the consolidated statements of operations for each respective fiscal year. As a result of still pending litigation, the Company cannot reasonably estimate the amount of CDSOA payments, if any, that it may receive in future years and/or whether it will be required to repay any previously received distributions. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The major classes of inventories are summarized as follows (in millions): March 31, 2016 2015 Finished goods $ 148.4 $ 168.5 Work in progress 55.3 70.7 Purchased components 67.6 69.9 Raw materials 49.3 52.8 Inventories at First-in, First-Out ("FIFO") cost 320.6 361.9 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 6.6 5.8 $ 327.2 $ 367.7 Certain prior year balances have been reclassified to conform to the current period presentations. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net is summarized as follows (in millions): March 31, 2016 2015 Land $ 31.2 $ 33.5 Buildings and improvements 210.8 217.7 Machinery and equipment 401.0 388.2 Hardware and software 65.4 61.5 Construction in-progress 37.6 25.9 746.0 726.8 Less accumulated depreciation (348.8 ) (309.2 ) $ 397.2 $ 417.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2016 | |
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 years ended March 31, 2016 and 2015 by operating segment, are presented below (in millions): Amortizable Intangible Assets Goodwill Indefinite Lived Intangible Assets Trade-Names Customer Relationships Patents Total Identifiable Intangible Assets Excluding Goodwill Process & Motion Control Net carrying amount as of March 31, 2014 $ 904.0 $ 197.6 $ 1.9 $ 94.4 $ 3.7 $ 297.6 Acquisitions 54.7 — 5.2 51.6 — 56.8 Purchase price allocation adjustments (1) 1.8 (3.1 ) 1.3 — — (1.8 ) Amortization — — (1.0 ) (31.0 ) (1.2 ) (33.2 ) Currency translation adjustment and other (2) (10.6 ) (1.6 ) (0.1 ) (2.0 ) — (3.7 ) Net carrying amount as of March 31, 2015 $ 949.9 $ 192.9 $ 7.3 $ 113.0 $ 2.5 $ 315.7 Purchase price allocation adjustments (1) (4.8 ) — 4.2 — — 4.2 Amortization — — (1.7 ) (32.9 ) (1.2 ) (35.8 ) Currency translation adjustment and other (2.7 ) (2.2 ) (0.7 ) (1.1 ) 0.6 (3.4 ) Net carrying amount as of March 31, 2016 $ 942.4 $ 190.7 $ 9.1 $ 79.0 $ 1.9 $ 280.7 Water Management Net carrying amount as of March 31, 2014 $ 246.7 $ 140.8 $ — $ 147.0 $ 7.2 $ 295.0 Acquisitions 20.0 — 1.6 7.3 1.5 10.4 Amortization — — (0.2 ) (19.4 ) (2.3 ) (21.9 ) Currency translation adjustment and other (14.3 ) (5.6 ) — (5.8 ) (0.1 ) (11.5 ) Net carrying amount as of March 31, 2015 $ 252.4 $ 135.2 $ 1.4 $ 129.1 $ 6.3 $ 272.0 Amortization — — (0.3 ) (19.2 ) (2.1 ) (21.6 ) Currency translation adjustment and other (3) (1.0 ) (10.2 ) (0.5 ) (0.1 ) 0.6 (10.2 ) Net carrying amount as of March 31, 2016 $ 251.4 $ 125.0 $ 0.6 $ 109.8 $ 4.8 $ 240.2 Consolidated Net carrying amount as of March 31, 2014 $ 1,150.7 $ 338.4 $ 1.9 $ 241.4 $ 10.9 $ 592.6 Acquisitions 74.7 — 6.8 58.9 1.5 67.2 Purchase price allocation adjustments (1) 1.8 (3.1 ) 1.3 — — (1.8 ) Amortization — — (1.2 ) (50.4 ) (3.5 ) (55.1 ) Currency translation adjustment and other (2) (24.9 ) (7.2 ) (0.1 ) (7.8 ) (0.1 ) (15.2 ) Net carrying amount as of March 31, 2015 $ 1,202.3 $ 328.1 $ 8.7 $ 242.1 $ 8.8 $ 587.7 Purchase price allocation adjustments (1) (4.8 ) — 4.2 — — 4.2 Amortization — — (2.0 ) (52.1 ) (3.3 ) (57.4 ) Currency translation adjustment and other (3) (3.7 ) (12.4 ) (1.2 ) (1.2 ) 1.2 (13.6 ) Net carrying amount as of March 31, 2016 $ 1,193.8 $ 315.7 $ 9.7 $ 188.8 $ 6.7 $ 520.9 ____________________ (1) Refer to Note 3 Acquisitions for additional information regarding purchase price allocation adjustments. (2) Includes $4.1 million of goodwill allocated to the Mill Products business in connection to the Company's decision to discontinue the Mill Products business during fiscal 2015. See Note 4 Discontinued Operations for additional information regarding the discontinued operation. (3) Includes $10.4 million , $0.3 million , and $0.2 million of impairment of indefinite-lived intangible assets, customer relationships and patents, respectively, associated with the exit of the RHF product line. Refer to Note 5 Restructuring and Other Similar Charges, for additional information. The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2016 and March 31, 2015 are as follows (in millions): March 31, 2016 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 41.3 $ (34.6 ) $ 6.7 Customer relationships (including distribution network) 13 years 628.4 (439.6 ) 188.8 Tradenames 8 years 12.7 (3.0 ) 9.7 Intangible assets not subject to amortization - trademarks and tradenames 315.7 — 315.7 $ 998.1 $ (477.2 ) $ 520.9 March 31, 2015 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 40.1 $ (31.3 ) $ 8.8 Customer relationships (including distribution network) 13 years 635.4 (393.3 ) 242.1 Tradenames 8 years 10.0 (1.3 ) 8.7 Intangible assets not subject to amortization - trademarks and tradenames 328.1 — 328.1 $ 1,013.6 $ (425.9 ) $ 587.7 Intangible asset amortization expense totaled $57.4 million , $55.1 million and $50.8 million for the years ended March 31, 2016 , 2015 and 2014 , respectively. Patents, tradenames, and customer relationships acquired during fiscal 2015 were assigned a weighted-average useful life of 3 years , 9 years , and 17 years , respectively. The Company expects to recognize amortization expense on the intangible assets subject to amortization of $37.8 million in fiscal year 2017, $27.0 million in fiscal year 2018, $26.7 million in fiscal year 2019, $26.5 million in fiscal year 2020, and $25.1 million in fiscal year 2021. During the third quarter of fiscal 2016, the Company completed the testing of indefinite lived intangible assets (tradenames) and goodwill for impairment in accordance with ASC 350, Intangibles-Goodwill and Other . The fair value of the Company's indefinite lived intangible assets and reporting units were primarily estimated using an income valuation model (discounted cash flow) and market approach (guideline public company comparables), which indicated that the fair value of the Company's indefinite lived intangible assets and reporting units exceeded their carrying value; therefore, no impairment was present. Total cumulative goodwill impairment charges as of March 31, 2016 and 2015 was $323.4 million . |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities are summarized as follows (in millions): March 31, 2016 March 31, 2015 Customer advances $ 8.3 $ 7.0 Sales rebates 28.2 25.4 Commissions 7.9 3.9 Restructuring and other similar charges (1) 10.8 7.0 Product warranty (2) 6.8 6.8 Risk management (3) 9.9 9.4 Legal and environmental 4.6 3.8 Taxes, other than income taxes 6.6 8.0 Income taxes payable 15.0 19.2 Interest payable 5.6 5.5 Other 20.7 19.7 $ 124.4 $ 115.7 ____________________ (1) See more information related to the restructuring obligations balance within Note 5 . (2) See more information related to the product warranty obligations balance within Note 2 . (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is summarized as follows (in millions): March 31, 2016 2015 Term loans (1) 1,881.0 1,895.8 8.875% Senior notes due 2016 — 1.3 Other (2) 39.1 42.9 Total 1,920.1 1,940.0 Less current maturities 20.2 24.3 Long-term debt $ 1,899.9 $ 1,915.7 ____________________ (1) Includes an unamortized original issue discount and debt issuance costs of $20.2 million and $25.0 million at March 31, 2016 and March 31, 2015 , respectively. (2) Includes unamortized debt issuance costs of $0.6 million at each of March 31, 2016 and 2015. Refer to "Other Subsidiary Debt" below for additional information. Senior Secured Credit Facility During fiscal 2014, the Company entered into the 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. The proceeds of the Term Loan were used to (i) repay in full the $786.2 million aggregate principal amount of existing term loans then-outstanding under the Company's former credit agreement, together with accrued interest thereon, (ii) retire (through a cash tender offer and redemption) all of the Company's former 8.50% Senior Notes due 2018 (the “ 8.50% Notes”) and (iii) pay related fees and expenses. The Company accounted for these transactions in accordance with ASC 470-50, Debt Modifications and Extinguishments (“ASC 470-50”). The Company recognized a $129.2 million loss on the debt extinguishment which was comprised of a $109.9 million bond tender premium paid to holders of the 8.50% Notes as a result of the tender offer and redemption, third party transaction costs of $5.3 million , and a $14.0 million non-cash write-off of deferred financing fees and net original issue discount associated with the extinguished debt. Earlier in fiscal 2014, the Company had made a $150.0 million prepayment under the former credit agreement and recognized a related pre-tax loss of $4.0 million in accordance with ASC 470-50, which was comprised of $0.8 million of fees paid to lenders and a non-cash write-off of $3.2 million of deferred financing fees and net original issue discount associated with the extinguished debt. As of March 31, 2016 and March 31, 2015 , the Company's outstanding borrowings under the Term Loan was $1,881.0 million and $1,895.8 million , respectively (net of $20.2 million and $25.0 million unamortized original issue discount and debt issuance costs, respectively). At March 31, 2016 and March 31, 2015 , the term borrowings under the Credit Agreement had an effective and average interest rate of 4.00% , determined as the London Interbank Offered Rate or LIBOR (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. As of March 31, 2016 and March 31, 2015 , interest rates under the Credit Agreement for the Term Loan were at the Company's option of either "(a)" or "(b)" as further described here: (a) in the case of alternative base rate ("ABR") borrowings, 2.00% (subject to a first lien leverage ratio) plus a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50% , (2) the prime rate determined from time to time by Credit Suisse AG, the administrative agent under the Credit Agreement and (3) LIBOR in effect for a one-month period plus 1.00% ; or (b) in the case of Eurocurrency borrowings, 3.00% (subject to a first lien leverage ratio) plus a Eurocurrency rate (subject to a 1% LIBOR floor). In the event the Company's first lien leverage ratio is less than 3.25 to 1.0, its applicable margin on both ABR and Eurocurrency term loan borrowings would decrease by twenty-five (25) basis points. For revolving commitments, the Company's applicable margin above the base rate (as described above) is 3.00% in the case of ABR borrowings and 4.00% in the case of Eurocurrency borrowings, subject to a first lien leverage test. In the event the Company's first lien leverage ratio is less than 1.5 to 1.0, its applicable margin on both ABR and Eurocurrency borrowings would decrease by twenty-five (25) basis points. The Company's actual first lien leverage ratio was 3.91 to 1.0 as of March 31, 2016 . In addition to paying interest on outstanding principal under the senior secured credit facilities, the Company is subject to a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to 0.50% per annum. As of March 31, 2016 , the remaining mandatory principal payments prior to maturity on the term loan facilities were $82.9 million . Principal payments of $4.9 million are scheduled to be made at the end of each calendar quarter until June 30, 2020, after which the entire term facility matures. All amounts outstanding under the revolving credit facility will be due and payable in full, and the commitments thereunder will terminate, on March 15, 2017. No amounts were borrowed under the revolving credit facility at March 31, 2016 or March 31, 2015 ; however, $21.1 million and $24.0 million of the revolving credit facility was considered utilized in connection with outstanding letters of credit at March 31, 2016 and 2015 , respectively. The Credit Agreement, among other things: (i) allows for one or more future issuances of secured notes, which may include, in each case, indebtedness secured on a pari passu basis with the obligations under the senior secured credit facilities, so long as, in each case, among other things, an agreed amount of the net cash proceeds from any such issuance are used to prepay term loans under the senior secured credit facilities at par; (ii) subject to the requirement to make such offers on a pro rata basis to all lenders and certain other restrictions, allows the Company to agree with individual lenders to extend the maturity date of any of the loans and/or commitments provided by such lenders and to otherwise modify the terms of the loans and/or commitments provided by such lenders (including, without limitation, increasing the interest rate or fees payable in respect of such loans and/or commitments and/or modifying the amortization schedule in respect of such loans); and (iii) allows for one or more future issuances of additional secured notes, which may include, in each case, indebtedness secured on a pari passu basis with the obligations under the senior secured credit facilities, in an amount not to exceed the amount of incremental facility availability under the senior secured credit facilities. The Credit Agreement also contains a number of typical covenants that, among other things, constrain, subject to certain fully-negotiated exceptions, the Company's ability, and the ability of the Company's subsidiaries, to: sell assets; incur additional indebtedness; repay other indebtedness; pay dividends and distributions, repurchase its capital stock, or make payments, redemptions or repurchases in respect to certain indebtedness; create liens on assets; make investments, loans, guarantees or advances; make certain acquisitions; engage in certain mergers or consolidations; enter into sale-and-leaseback transactions; engage in certain transactions with affiliates; amend certain material agreements governing its indebtedness; make capital expenditures; enter into hedging agreements; amend its organizational documents; change the business conducted by it and its subsidiaries; and enter into agreements that restrict dividends from subsidiaries. In addition, payment of borrowings under the Credit Agreement may be accelerated upon an event of default. Events of default include, among others, the failure to pay principal and interest when due, a material breach of a representation or warranty, covenant defaults, certain non-payments or defaults under other material indebtedness, events of bankruptcy and a change of control. As of March 31, 2016, 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 1.00. Senior Notes Outstanding Tranche of Notes At March 31, 2015 , the Company had outstanding $ 1.3 million in principal of 8.875% Senior Notes due in fiscal 2016 . Those Notes were redeemed in full during fiscal 2016 . Other Subsidiary Debt During fiscal 2013 and fiscal 2012, the Company received $4.3 million and $5.5 million , respectively, in net proceeds from financing agreements related to facility modernization projects at two North American manufacturing facilities. These financing agreements were structured with unrelated third party financial institutions (the "Investor") and their wholly-owned community development entities in connection with the Company's participation in transactions qualified under the federal New Market Tax Credit program, pursuant to Section 45D of the Internal Revenue Code of 1986, as amended. Through its participation in this program, the Company has secured low interest financing and the potential for future debt forgiveness related to eligible capital projects. Upon closing of these transactions, the Company provided an aggregate of $27.6 million to the Investor, in the form of loans receivable, with a term of thirty years, bearing an interest rate of approximately 2.0% per annum. As collateral for these loans, the Company has granted a security interest in the assets acquired with the loan proceeds. No earlier than December 2018, and upon meeting certain conditions, both the Investor and the Company have the ability to trigger forgiveness of the net debt which could result in a net non-operating gain of up to $9.8 million , excluding applicable transaction costs and unamortized debt issuance costs. To the extent the loans payable are not forgiven, the Company would be required to repay the full amount of the outstanding $37.4 million principal balance and would concurrently receive a loan repayment of $27.6 million on the aforementioned loans receivable, resulting in a net $9.8 million use of liquidity. At March 31, 2016 and 2015 , the aggregate loans of $36.8 million , net of debt issuance costs, are recorded in Long-Term Debt on the consolidated balance sheets and the aggregate loans receivable of $27.6 million are recorded in Other Assets on the consolidated balance sheets. At March 31, 2016 and 2015 , various wholly owned subsidiaries had additional debt of $39.1 million and $42.9 million , respectively, comprised primarily of loans payable as a result of the New Market Tax Credit financing agreements referenced above as well as borrowings at various foreign subsidiaries and capital lease obligations. Accounts Receivable Securitization Program During fiscal 2016 , the Company entered into an Omnibus Amendment (the "Omnibus Amendment") which extended the maturity of the Company's accounts receivable securitization facility (the “Securitization”) with General Electric Company, successor by merger to General Electric Capital Corporation (“GEC”). Terms of the Securitization remained comparable to the agreement prior to the Omnibus Amendment, except as set forth below. On March 1, 2016, Wells Fargo & Company completed the purchase of portions of GEC's commercial and corporate finance businesses, and all rights and obligations under the Omnibus Amendment were assigned to Wells Fargo Bank, N.A. as agent and lender as of that date. Pursuant to the agreements evidencing the Securitization, Rexnord Funding (a wholly owned bankruptcy-remote special purpose subsidiary) has granted GEC a security interest in all of its current and future receivables and related assets in exchange for a credit facility permitting borrowings of up to a maximum aggregate amount of $100.0 million (unchanged by the Omnibus Amendment) outstanding from time to time. Such borrowings will be used by Rexnord Funding to finance purchases of accounts receivable. The amount of advances available will be determined based on advance rates relating to the eligibility of the receivables held by Rexnord Funding at that time. Advances will bear interest based on LIBOR plus 1.75% . The last date on which advances may be made is December 30, 2020 unless the maturity of the Securitization is otherwise accelerated. In addition to other customary fees associated with financings of this type, Rexnord Funding will also pay an unused line fee to GEC based on any unused portion of the Securitization facility. If the average daily outstanding principal amount during a calendar month is less than 50% of the average daily aggregate commitment in effect during such month, the unused line fee will be 0.50% per annum; otherwise, it will be 0.375% per annum. The Securitization continues to constitute a “Permitted Receivables Financing” under Article 1 and Article 6 of the Credit Agreement and does not qualify for sale accounting under ASC 860, Transfers and Servicing . Any borrowings under the Securitization continue to be accounted for as secured borrowings on the Company's consolidated balance sheet. Financing costs associated with the Securitization are recorded within "Interest expense, net" in the consolidated statement of operations if revolving loans or letters of credit are obtained under the Omnibus Amendment. At March 31, 2016, the Company's available borrowing capacity under the Securitization was $100.0 million , based on the current accounts receivables balance. As of March 31, 2016, the Company was in compliance with all applicable covenants and performance ratios contained in the Securitization. Future Debt Maturities Future maturities of debt as of March 31, 2016, excluding the unamortized original issue discount and debt issuance costs of $20.8 million , were as follows (in millions): Years ending March 31: 2017 $ 20.2 2018 19.9 2019 19.9 2020 19.7 2021 1,823.4 Thereafter 37.8 $ 1,940.9 Cash interest paid for the fiscal years ended March 31, 2016 , 2015 and 2014 was $87.7 million , $84.1 million , and $151.1 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Mar. 31, 2016 | |
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 and interest rates. The Company currently selectively uses foreign currency forward exchange contracts and interest rate swap and cap contracts to manage its foreign currency and interest rate risks. 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 and as such were marked to market through earnings. See the amounts recorded on the consolidated balance sheets and recognized within the consolidated statements of operations related to the Company's foreign currency forward contracts within the tables below. Interest Rate Derivatives 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). Those interest rate swaps became effective beginning on September 28, 2015 with a maturity of September 27, 2018. These interest rate derivatives have been designated as effective cash flow hedges in accordance with ASC 815. During fiscal 2015, the Company entered into two interest rate caps in order to mitigate the Company's exposure to increasing interest rates on its variable-rate interest loans. Those interest rate caps were effective as of October 24, 2014, with a maturity of October 24, 2018; they cap the interest on $750.0 million of the Company's variable-rate interest loans at 3% , plus the applicable margin. In executing the interest rate caps, the Company paid a premium of $5.8 million . The interest rate caps have been designated as effective cash flow hedges in accordance with ASC 815. When combined with the Company's existing interest rate swaps, the Company has effectively hedged approximately 74% of its outstanding variable rate term loans with a weighted average interest rate that cannot exceed 2.79% plus the applicable margin of 3% . The fair values of the Company's interest rate derivatives are recorded on the 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 consolidated balance sheets related to the Company's interest rate derivatives within the tables below. The Company's derivatives are measured at fair value in accordance with 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 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 (in millions): March 31, 2016 March 31, 2015 Balance Sheet Classification Liability Derivatives Interest rate swaps $ 21.8 $ 17.7 Other liabilities Asset Derivatives Interest rate caps $ 0.3 $ 3.0 Other assets Fair value of derivatives not designated as hedging instruments under ASC 815 (in millions): March 31, 2016 March 31, 2015 Balance Sheet Classification Liability Derivatives Foreign currency forward contracts $ 0.9 $ — Other current liabilities Asset Derivatives Foreign currency forward contracts $ — $ 0.4 Other current assets The following tables indicate the location and the amount of losses and gains associated with the Company's derivative instruments, net of tax, within the consolidated balance sheets (for qualifying ASC 815 instruments) and recognized within the 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 March 31, 2016 , there was no ineffectiveness on the Company's designated hedging instruments. Cumulative loss recognized, net of tax, in accumulated other comprehensive loss on derivatives Derivative instruments designated as cash flow hedging relationships under ASC 815 March 31, 2016 March 31, 2015 Interest rate swaps $ 13.5 $ 11.0 Interest rate caps $ 3.4 $ 1.7 Amount recognized in other income (expense), net Derivative instruments not designated as hedging instruments under ASC 815 Location of gain recognized in income on derivatives Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Foreign currency forward contracts Other income (expense), net $ — $ 0.5 $ 0.4 During fiscal 2016 , the Company reclassified $5.2 million of accumulated other comprehensive loss into earnings as interest expense related to interest rate derivative and expects to reclassify $10.9 million of accumulated other comprehensive loss into earnings as interest expense during the next twelve months. The Company did not reclassify any amounts from other comprehensive loss into earnings as interest expense during the fiscal years ending 2015 and 2014. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2016 | |
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. Fair Value of Derivative Instruments The Company transacts in foreign currency forward contracts and interest rate swaps and caps, 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 and caps 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. The Company has determined that its 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 years ended March 31, 2016 and March 31, 2015 . The following table provides a summary of the Company's assets and liabilities that were recognized at fair value on a recurring basis as of March 31, 2016 and March 31, 2015 (in millions): Fair Value as of March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Interest rate caps $ — $ 0.3 $ — $ 0.3 Total assets at fair value $ — $ 0.3 $ — $ 0.3 Liabilities: Interest rate swaps $ — $ 21.8 $ — $ 21.8 Foreign currency forward contracts $ — $ 0.9 $ — $ 0.9 Total liabilities at fair value $ — $ 22.7 $ — $ 22.7 Fair Value as of March 31, 2015 Level 1 Level 2 Level 3 Total Assets: Interest rate caps $ — $ 3.0 $ — $ 3.0 Foreign currency forward contracts — 0.4 — 0.4 Total assets at fair value $ — $ 3.4 $ — $ 3.4 Liabilities: Interest rate swaps $ — $ 17.7 $ — $ 17.7 Total liabilities at fair value $ — $ 17.7 $ — $ 17.7 Fair Value of Non-Derivative Financial Instruments The carrying amounts of cash, receivables, payables and accrued liabilities approximated fair value at March 31, 2016 and March 31, 2015 due to the short-term nature of those instruments. The fair value of long-term debt recorded on the consolidated balance sheets as of March 31, 2016 and March 31, 2015 was approximately $1,913.2 million and $1,970.6 million , respectively. The fair value is based on quoted market prices for the same issues. Long-lived Assets and Intangible Assets Long-lived assets (which include property, plant and equipment and real estate) may be measured at fair value if such assets are held-for-sale or when there is a determination that the asset is impaired. Intangible assets (which include patents, tradenames, customer relationships, and non-compete agreements) also may be measured at fair value when there is a determination that the asset is impaired. The determination of fair value for these assets is based on the best information available that resides within Level 3 of the fair value hierarchy, including internal cash flow estimates discounted at an appropriate interest rate, quoted market prices when available, market prices for similar assets and independent appraisals, as appropriate. For real estate, cash flow estimates are based on current market estimates that reflect current and projected lease profiles and available industry information about expected trends in rental, occupancy and capitalization rates. As disclosed in Note 5, the Company recorded an impairment loss of approximately $6.6 million during fiscal 2016 to place certain property, plant and equipment associated with the Company's supply chain optimization and footprint optimization actions at net realizable value. Net realizable value of these assets was determined using independent appraisals of the assets, classified as Level 3 inputs within the fair value hierarchy. As of March 31, 2016, these assets have a net realizable value of $5.3 million and are classified within property, plant and equipment on the consolidated balance sheets. During fiscal 2015, the Company ceased operations of its Mill Products business and recorded a net impairment loss of $3.8 million to place the long-lived assets of that business at net realizable value. The impairment loss recognized was determined utilizing independent appraisals of the assets, classified as Level 3 inputs within the fair value hierarchy. At March 31, 2016 and 2015, the remaining long-lived assets of the Mill Products business have a net realizable value of approximately $0 and $2.6 million , respectively, and are classified within assets held for sale on the consolidated balance sheets. See Note 4 Discontinued Operations for additional information. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Leases | Leases The Company leases manufacturing and warehouse facilities and data processing and other equipment under non-cancelable operating leases which expire at various dates primarily through 2027. Rent expense under operating leases totaled $18.2 million , $19.4 million and $17.0 million for the fiscal years ended March 31, 2016 , 2015 and 2014 , respectively. Future minimum rental payments for operating leases with initial terms in excess of one year as of March 31, 2016 are as follows (in millions): Years ending March 31: 2017 $ 14.8 2018 14.6 2019 12.3 2020 10.8 2021 8.2 Thereafter 22.7 $ 83.4 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In accordance with ASC 718, the Company recognizes compensation costs related to share-based payment transactions. Generally, compensation cost is measured based on the grant-date fair value of the equity instruments issued. Compensation cost is recognized over the requisite service period, generally as the awards vest. In fiscal 2007, the Board of Directors adopted, and stockholders approved, the 2006 Stock Option Plan (the “2006 Option Plan”). The maximum number of shares of the Company's common stock that may be issued or transferred pursuant to options under the 2006 Option Plan equals 11,239,290 shares. Following the consummation of the Company's initial public offering ("IPO") in April 2012, all outstanding unvested options under the 2006 Option Plan, including that portion of options that was scheduled to vest with respect to fiscal 2012 Company performance, were amended to vest solely based on continued employment with the Company over the 5 year vesting period. No further options are being granted under the 2006 Option Plan. In fiscal 2012, the Board of Directors adopted, and stockholders approved, the Rexnord Corporation 2012 Performance Incentive Plan (the "2012 Incentive Plan", and together with the 2006 Option Plan, the "Incentive Plans"), which operates as a successor plan to the 2006 Option Plan. The 2012 Incentive Plan is intended to provide performance incentives to the Company's officers, employees, directors and certain others by permitting grants of equity awards and performance-based cash awards to such persons, to encourage them to maximize Rexnord's performance and create value for Rexnord's stockholders, but broadens the types of awards that had been permitted by the 2006 Option Plan. To date, stock options, Restricted Stock Units ("RSUs") and Performance Stock Units ("PSUs") have been issued under the Incentive Plans. The options granted under the 2012 Incentive Plan have a maximum term of ten years after the grant date. Options granted from the inception of the plan through July 31, 2014 vest 50% three years after the grant date and the remaining 50% vest five years after the grant date. Options and RSUs granted from July 31, 2014 through May 21, 2015 vest ratably over four years. Options and RSUs granted subsequent to May 21, 2015 vest ratably over three years. PSUs granted in fiscal 2016 cliff vest after three years. Options granted to directors of the Company vest ratably over three years. The 2012 Incentive Plan permits the grant of awards that may deliver up to an aggregate of 8,350,000 shares of common stock further subject to limits on the number of shares that may be delivered pursuant to incentive stock options and on the shares that may be delivered on the awards to any individual in a single year, within the meaning of Section 162(m) of the Internal Revenue Code. The 2012 Incentive Plan is administered by the Compensation Committee. During fiscal 2016 , 2015 and 2014 , the Company recorded $7.5 million , $6.4 million and $7.0 million of stock-based compensation, respectively (the related tax benefit on these amounts was $2.8 million for fiscal 2016 , $2.2 million for fiscal 2015 , and $2.5 million for fiscal 2014 ). During fiscal 2016 , 2015 and 2014 , the Company also recorded $4.0 million , $5.8 million and $5.8 million , respectively, of an excess tax benefit related to stock options exercised during each fiscal year. As of March 31, 2016 , there was $16.7 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted under the Incentive Plans. That cost is expected to be recognized over a weighted-average period of 2.3 years. In February 2015, the Company's Board of Directors approved a stock repurchase program (the "Repurchase Program") authorizing the repurchase of up to $200 million of the Company's common stock from time to time on the open market or in privately negotiated transactions. The Repurchase Program does not require the Company to acquire any particular amount of common stock and does not specify the timing of purchases or the prices to be paid. During fiscal 2016, the Company repurchased 1,552,500 shares of common stock at a total cost of $40.0 million at an average price of $25.76 . The repurchased shares were canceled by the Company upon receipt. A total of approximately $160.0 million of the existing repurchase authority remained at March 31, 2016 . Stock Options The fair value of each option granted under the Incentive Plans was estimated on the date of grant using the Black-Scholes valuation model that uses the following weighted-average assumptions: Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 Expected option term (in years) 6.5 7.1 7.5 Expected volatility factor 24 % 26 % 35 % Weighted-average risk free interest rate 1.82 % 2.10 % 1.57 % Expected dividend rate 0.0 % 0.0 % 0.0 % Options granted under the Incentive Plans have a term of ten years. Management’s estimate of the option term for options granted under the Incentive Plans is 6.5 years based on the midpoint between when the options vest and when they expire. The Company uses the simplified method to determine the expected term, as management does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term due to the limited period of time its common stock shares has been publicly traded. The Company’s expected volatility assumptions are based on the expected volatilities of publicly-traded companies within the Company’s industry. The weighted average risk free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. Management also assumes expected dividends of zero . The weighted-average grant date fair value of options granted under the Incentive Plans during fiscal 2016 , 2015 and 2014 was $6.92 , $9.21 and $8.06 , respectively. The total fair value of options vested during fiscal 2016 , 2015 and 2014 was $9.8 million , $1.3 million and $1.8 million , respectively. Other information relative to stock options and the changes period over period are as follows: Year-Ended March 31, 2016 Year-Ended March 31, 2015 Year-Ended March 31, 2014 Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Number of shares under options: Outstanding at beginning of period 8,588,518 $ 13.04 8,652,834 $ 10.79 9,450,197 $ 9.85 Granted 1,072,556 24.14 1,268,124 28.30 978,849 19.82 Exercised (1) (1,278,017 ) 5.55 (743,807 ) 5.85 (1,154,011 ) 5.91 Canceled/Forfeited (528,372 ) 23.53 (588,633 ) 21.65 (622,201 ) 19.91 Outstanding at end of period (2) 7,854,685 $ 15.10 8,588,518 $ 13.06 8,652,834 $ 10.79 Exercisable at end of period (3) 4,678,216 $ 9.52 4,798,457 $ 5.67 5,225,236 $ 5.46 ______________________ (1) The total intrinsic value of options exercised during fiscal 2016 , 2015 and 2014 was $16.3 million , $16.7 million and $18.7 million , respectively. (2) The weighted average remaining contractual life of options outstanding was 5.0 years at March 31, 2016 , 5.0 years at March 31, 2015 and 5.5 years at March 31, 2014 . The aggregate intrinsic value of options outstanding at March 31, 2016 was $54.8 million . (3) The weighted average remaining contractual life of options exercisable was 3.0 years at March 31, 2016 , 2.6 years at March 31, 2015 and 3.7 years at March 31, 2014 . The aggregate intrinsic value of options exercisable at March 31, 2016 was $52.6 million . Shares Weighted Avg. Exercise Price Nonvested options at beginning of period 3,788,315 $ 22.43 Granted 1,072,556 24.14 Vested (1,220,559 ) 21.09 Canceled/Forfeited (463,843 ) 24.05 Nonvested options at end of period 3,176,469 $ 23.30 Restricted Stock Units During the twelve months ended March 31, 2016 and 2015 , the Company granted restricted stock units ("RSUs") to certain of its officers, directors, and employees. No RSUs were granted in fiscal 2014 . RSUs granted during the twelve months ended March 31, 2016 , and 2015 vest ratably over three and four years, respectively. The fair value of each award is determined based on the Company's closing stock price on the date of grant. A summary of RSU activity during the twelve months ended March 31, 2016 , and 2015 is as follows: Twelve Months Ended March 31, 2016 March 31, 2015 Shares Weighted Avg. Grant Date Fair Value Shares Weighted Avg. Grant Date Fair Value Nonvested RSUs at beginning of period 53,813 $ 29.06 — $ — Granted 96,952 23.20 58,883 29.08 Vested (12,866 ) 29.09 — — Canceled/Forfeited (12,592 ) 27.62 (5,070 ) 29.31 Nonvested RSUs at end of period 125,307 $ 24.67 53,813 $ 29.06 Performance Stock Units During the twelve months ended March 31, 2016 , the Company granted 50,711 performance stock units (“PSUs”) to certain of its officers and employees at a weighted-average grant date fair value of $28.57 per PSU. Those PSUs have a three -year performance period, and are earned and vest, subject to continued employment, based in part on the Company’s performance relative to pre-defined goals for absolute free cash flow conversion and in part on relative total shareholder return (“TSR”) as compared to companies in the S&P 1500 Industrial Index. The number of performance share awards earned, which can range between 0% and 200% of the target awards granted depending on the Company's actual performance during the three -year performance period, will be satisfied with Rexnord common stock. The fair value of the portion of PSUs with vesting based on free cash flow conversion is determined based on the Company's closing stock price on the date of grant. The fair value of the portion PSUs with vesting based on TSR is determined utilizing the Monte Carlo simulation model. Assumptions used to determine the fair value of each PSU were based on historical data and standard industry valuation practices and methodology. The following weighted-average assumptions were used for the PSUs granted during the twelve months ended March 31, 2016 : Twelve Months Ended March 31, 2016 Expected volatility factor 31 % Weighted-average risk-free interest rate 1.01 % Expected dividend rate 0.0 % PSU fair value per share $32.06 As of March 31, 2016 , 49,136 PSUs were outstanding and unvested at a weighted-average fair value of $28.57 , net of 1,575 PSUs canceled or forfeited. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Benefits | Retirement Benefits The Company sponsors pension and other postretirement benefit plans for certain employees. Most of the Company’s employees are accumulating retirement income benefits through defined contribution plans. However, the Company does sponsor frozen pension plans for its salaried participants and ongoing pension benefits for certain employees represented by collective bargaining. These plans provide for monthly pension payments to eligible employees upon retirement. Pension benefits for salaried employees generally are based on years of frozen credited service and average earnings. Pension benefits for hourly employees generally are based on specified benefit amounts and years of service. The Company’s policy is to fund its pension obligations in conformity with the funding requirements under applicable laws and governmental regulations. Other postretirement benefits consist of retiree medical plans that cover a portion of employees in the United States that meet certain age and service requirements. The corridor is 10% of the higher of the pension benefit obligation or the fair value of the plan assets. The Company recognizes the net actuarial gains or losses in excess of 10% of the higher of the pension benefit obligation or the fair value of the plan assets in operating results during the fourth quarter of each fiscal year (or upon any required re-measurement event). During the fiscal years ending March 31, 2016 , 2015 and 2014 , the Company recognized non-cash actuarial losses of $12.9 million , $59.4 million and $2.7 million , respectively, in connection with this accounting policy. Net periodic benefit costs recorded on a quarterly basis are primarily comprised of service and interest cost, amortization of unrecognized prior service cost and the expected return on plan assets. In conjunction with the re-measurement of the pension and other post retirement obligations in fiscal 2016, lower than projected asset growth, partially offset by a slightly higher discount rate and shorter life expectancy assumptions resulted in the recognition of non-cash actuarial losses of $12.9 million . In fiscal 2015, the Society of Actuaries issued revised mortality tables (RP 2014) and a mortality improvement scale (MP 2014) for use by actuaries, insurance companies, governments, benefit plan sponsors and others in setting assumptions regarding life expectancy in the United States for purposes of estimating pension and OPEB obligations, costs and required contribution amounts. The new mortality tables indicate substantial life expectancy improvements since the last study published in 2000 (RP 2000). In conjunction with the re-measurement of the pension and other post-retirement obligations in fiscal 2015, the adoption of the newly issued mortality tables and mortality improvement scale, lower discount rates, and the lump-sum settlement completed in fiscal 2015 resulted in the recognition of non-cash actuarial losses of $59.4 million . The components of net periodic benefit cost reported in the consolidated statements of operations are as follows (in millions): Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Pension Benefits: Service cost $ 2.2 $ 1.4 $ 1.8 Interest cost 25.5 30.0 30.1 Expected return on plan assets (28.8 ) (29.8 ) (30.5 ) Amortization of: Prior service cost 0.1 0.2 0.2 Settlement loss (1) — 6.5 — Recognition of actuarial losses 13.0 51.7 2.7 Net periodic benefit cost $ 12.0 $ 60.0 $ 4.3 Other Postretirement Benefits: Service cost $ 0.1 $ 0.1 $ 0.1 Interest cost 1.2 1.3 1.2 Amortization: Prior service credit (2.0 ) (1.9 ) (1.9 ) Recognition of actuarial losses (gains) (0.1 ) 1.2 — Net periodic benefit cost $ (0.8 ) $ 0.7 $ (0.6 ) (1) During fiscal 2015 the Company offered approximately 4,500 inactive participants in its domestic non-union defined benefit plans with vested benefits the opportunity to receive a lump sum settlement of the value of the participant’s pension benefit. Acceptance of the offer by a participant was completely voluntary, and if accepted, participants could elect to receive the settlement in the form of a single lump sum payment or in the form of a monthly annuity beginning during fiscal 2015. The election period for this voluntary offer closed on October 15, 2014 and a total of $65.0 million was paid to electing participants during fiscal 2015. The settlement and corresponding re-measurement of the domestic non-union defined benefit plan resulted in the recognition of non-cash actuarial losses during fiscal 2015 of $6.5 million . The Company made contributions to its U.S. qualified pension plan trusts of $4.9 million , $7.9 million , and $7.8 million during the years ended March 31, 2016 , 2015 and 2014 , respectively. During fiscal 2017 , the Company expects to contribute approximately $0.4 million to its U.S. qualified defined benefit plans and $2.6 million to its other postretirement benefit plans. The status of the plans are summarized as follows (in millions): Pension Benefits Other Postretirement Benefits Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2016 Year Ended March 31, 2015 Benefit obligation at beginning of period $ (718.8 ) $ (700.0 ) $ (32.4 ) $ (31.2 ) Service cost (2.2 ) (1.4 ) (0.1 ) (0.1 ) Interest cost (25.5 ) (30.0 ) (1.2 ) (1.3 ) Actuarial (losses) gains 35.1 (114.2 ) 0.7 (2.1 ) Benefits paid 38.8 40.8 4.0 3.2 Plan participant contributions (0.4 ) (0.4 ) (0.6 ) (0.9 ) Settlements — 65.0 — — Translation adjustment (1.0 ) 21.4 — — Benefit obligation at end of period $ (674.0 ) $ (718.8 ) $ (29.6 ) $ (32.4 ) Plan assets at the beginning of the period $ 543.2 $ 577.7 $ — $ — Actual return on plan assets (9.5 ) 65.0 — — Contributions 8.6 12.5 4.0 3.2 Benefits paid (38.8 ) (40.8 ) (4.0 ) (3.2 ) Settlements — (65.0 ) — — Translation adjustment 0.1 (6.2 ) — — Plan assets at end of period $ 503.6 $ 543.2 $ — $ — Funded status of plans $ (170.4 ) $ (175.6 ) $ (29.6 ) $ (32.4 ) Net amount on Consolidated Balance Sheets consists of: Long-term assets $ 0.5 $ — $ — $ — Current liabilities (2.4 ) (2.3 ) (2.6 ) (2.7 ) Long-term liabilities (168.5 ) (173.3 ) (27.0 ) (29.7 ) Total net funded status $ (170.4 ) $ (175.6 ) $ (29.6 ) $ (32.4 ) As of March 31, 2016 , the Company had pension plans with a combined projected benefit obligation of $674.0 million compared to plan assets of $503.6 million , resulting in an under-funded status of $170.4 million compared to an under-funded status of $175.6 million at March 31, 2015 . The Company’s funded status has improved year over year primarily as a result of actuarial gains as a result of higher discount rates and shorter life expectancy assumptions partially offset by lower than projected asset returns. Any further changes in the assumptions underlying the Company’s pension values, including those that arise as a result of declines in equity markets and changes in interest rates, could result in increased pension obligation and pension cost which could negatively affect the Company’s consolidated financial position and results of operations in future periods. Amounts included in accumulated other comprehensive loss (income), net of tax, related to defined benefit plans at March 31, 2016 and 2015 consist of the following (in millions): As of March 31, 2016 Pension Benefits Postretirement Benefits Total Unrecognized prior service cost (credit) $ 0.1 $ (5.1 ) $ (5.0 ) Unrecognized actuarial loss 61.9 0.6 62.5 Accumulated other comprehensive loss (income), gross 62.0 (4.5 ) 57.5 Deferred income tax (benefit) provision (23.6 ) 1.7 (21.9 ) Accumulated other comprehensive loss (income), net $ 38.4 $ (2.8 ) $ 35.6 As of March 31, 2015 Pension Benefits Postretirement Benefits Total Unrecognized prior service cost (credit) $ 0.2 $ (7.1 ) $ (6.9 ) Unrecognized actuarial loss 71.7 1.2 72.9 Accumulated other comprehensive loss (income), gross 71.9 (5.9 ) 66.0 Deferred income tax (benefit) provision (27.4 ) 2.5 (24.9 ) Accumulated other comprehensive loss (income), net $ 44.5 $ (3.4 ) $ 41.1 The Company expects to recognize $0.1 million and $(2.0) million of prior service costs (credits) included in accumulated other comprehensive (loss) income for pension benefits and other postretirement benefits, respectively, as components of net periodic benefit cost during the next fiscal year. The following table presents significant assumptions used to determine benefit obligations and net periodic benefit cost (income) in weighted-average percentages: Pension Benefits Other Postretirement Benefits March 31, 2016 March 31, 2015 March 31, 2014 March 31, 2016 March 31, 2015 March 31, 2014 Benefit Obligations: Discount rate 3.84 % 3.70 % 4.54 % 3.90 % 3.80 % 4.30 % Rate of compensation increase 3.07 % 3.40 % 3.41 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.70 % 4.54 % 4.25 % 3.80 % 4.30 % 3.80 % Rate of compensation increase 3.40 % 3.41 % 3.42 % n/a n/a n/a Expected return on plan assets 5.33 % 5.30 % 5.48 % n/a n/a n/a In evaluating the expected return on plan assets, consideration was given to historical long-term rates of return on plan assets and input from the Company’s pension fund consultant on asset class return expectations, long-term inflation and current market conditions. The following table presents the Company’s target investment allocations for the year ended March 31, 2016 and actual investment allocations at March 31, 2016 and 2015 . Plan Assets 2016 2015 Investment Policy (1) Target Allocation (2) Actual Allocation Actual Allocation Equity securities 20 - 30% 29 % 28 % 28 % Debt securities (including cash and cash equivalents) 55 - 80% 66 % 66 % 67 % Other 0 - 10% 5 % 6 % 5 % (1) The investment policy allocation represents the guidelines of the Company's principal U.S. pension plans based on the changes in the plans funded status. (2) The target allocations represent the weighted average target allocations for the Company's principal U.S. pension plans. The Company's defined benefit pension utilizes a dynamic liability driven investment (“LDI”) strategy. The objective is to more closely align the pension plan assets with its liabilities in terms of how both respond to interest rate changes. The plan assets are allocated into two investment categories: (i) LDI, comprised of high quality, investment grade fixed income securities and (ii) return seeking, comprised of traditional securities and alternative asset classes. All assets are managed externally according to guidelines established individually with investment managers and the Company's investment consultant. The Company periodically undertakes asset and liability modeling studies to determine the appropriateness of the investments. The Company intends to continuously reduce the assets allocated to the return seeking category, thereby increasing the assets allocated to the LDI category based on the overall improvement in the plan funded status. No equity securities of the Company are held in the portfolio. The fair values of the Company’s pension plan assets for both the U.S and non-U.S. plans at March 31, 2016 and 2015 , by asset category are included in the table below (in millions). For additional information on the fair value hierarchy and the inputs used to measure fair value, see Note 13 Fair Value Measurements. As of March 31, 2016 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 1.7 $ 4.9 $ — $ 6.6 Investment funds Fixed income funds (1) — 328.8 — 328.8 U.S. equity funds (2) — 63.7 — 63.7 International equity funds (2) — 35.3 — 35.3 Balanced funds (2) — 9.1 — 9.1 Alternative investment funds (3) — — 37.5 37.5 Insurance contracts — — 22.6 22.6 Total $ 1.7 $ 441.8 $ 60.1 $ 503.6 As of March 31, 2015 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 1.8 $ 5.6 $ — $ 7.4 Investment funds Fixed income funds (1) — 355.5 — 355.5 U.S. equity funds (2) — 68.1 — 68.1 International equity funds (2) — 35.8 — 35.8 Balanced funds (2) — 10.1 — 10.1 Alternative investment funds (3) — — 42.9 42.9 Insurance contracts — — 23.4 23.4 Total $ 1.8 $ 475.1 $ 66.3 $ 543.2 (1) The Company's fixed income mutual and commingled funds primarily include investments in U.S. government securities and corporate bonds. The commingled funds also include an insignificant portion of investments in asset-backed securities or partnerships. The mutual and commingled funds are valued using quoted market prices of the underlying investments. (2) The Company's equity mutual and commingled funds primarily include investments in U.S. and international common stock. The balanced mutual and commingled funds invest in a combination of fixed income and equity securities. The mutual and commingled funds are valued using quoted market prices of the underlying securities. (3) The Company's alternative investments include venture capital and partnership investments. Alternative investments are valued using the net asset value, which reflects the plan's share of the fair value of the investments. The table below sets forth a summary of changes in the fair value of the Level 3 investments for the years ended March 31, 2016 and 2015 (in millions): Alternative Investments Insurance Contracts Total Beginning balance, March 31, 2014 $ 53.6 $ 16.5 $ 70.1 Actual return on assets: Related to assets held at reporting date (1.6 ) 6.9 5.3 Related to assets sold during the period 2.3 — 2.3 Purchases, sales, issuances and settlements (11.4 ) — (11.4 ) Transfers in and/or out of Level 3 — — — Ending balance, March 31, 2015 42.9 23.4 66.3 Actual return on assets: Related to assets held at reporting date (2.4 ) (0.8 ) (3.2 ) Related to assets sold during the period 1.5 — 1.5 Purchases, sales, issuances and settlements (4.5 ) — (4.5 ) Ending balance, March 31, 2016 $ 37.5 $ 22.6 $ 60.1 Expected benefit payments to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in millions): Year Ending March 31: Pension Benefits Other Postretirement Benefits 2017 $ 40.1 $ 2.6 2018 40.3 2.7 2019 40.5 2.6 2020 40.2 2.5 2021 40.2 2.4 2022-2026 200.4 9.9 Pension Plans That Are Not Fully Funded At March 31, 2016 , the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of the fair value of plan assets were $665.3 million , $657.1 million and $494.5 million , respectively. At March 31, 2015 , the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of the fair value of plan assets were $717.7 million , $706.3 million and $541.5 million , respectively. Other Postretirement Benefits The other postretirement benefit obligation was determined using an assumed health care cost trend rate of 7.0% in fiscal 2016 grading down to 5.0% in fiscal 2024 and thereafter. The discount rate, compensation rate increase and health care cost trend rate assumptions are determined as of the measurement date. Assumed health care cost trend rates have a significant effect on amounts reported for the retiree medical plans. A one-percentage point change in assumed health care cost trend rates would have the following effect (in millions): One Percentage Point Increase One Percentage Point Decrease Year Ended March 31, Year Ended March 31, 2016 2015 2014 2016 2015 2014 Increase (decrease) in total of service and interest cost components $ 0.1 $ 0.1 $ 0.1 $ (0.1 ) $ (0.1 ) $ (0.1 ) Increase (decrease) in postretirement benefit obligation 2.6 2.9 2.4 (2.2 ) (2.5 ) (2.1 ) Multi-Employer and Government-sponsored Plans The Company participates in certain multi-employer and government-sponsored plans for eligible employees. Expense recognized related to these plans was $0.2 million , $0.2 million , and $0.3 million in the years ended March 31, 2016 , 2015 and 2014 , respectively. Defined Contribution Savings Plans The Company sponsors certain defined-contribution savings plans for eligible employees. Expense recognized related to these plans was $14.2 million , $15.2 million , and $15.6 million for the years ended March 31, 2016 , 2015 and 2014 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of amounts for taxes currently payable, amounts for tax items deferred to future periods; as well as, adjustments relating to the Company’s determination of uncertain tax positions, including interest and penalties. The Company recognizes deferred tax assets and liabilities based on the future tax consequences attributable to tax net operating loss (“NOL”) carryforwards, tax credit carryforwards and differences between the financial statement carrying amounts and the tax bases of applicable assets and liabilities. Deferred tax assets are regularly reviewed for recoverability and valuation allowances are established based on historical losses, projected future taxable income and the expected timing of the reversals of existing temporary differences. As a result of this review, the Company continues to maintain a partial valuation allowance against certain foreign NOL carryforwards and other related foreign deferred tax assets, as well as certain state NOL carryforwards. Income Tax Provision (Benefit) The components of the provision (benefit) for income taxes are as follows (in millions): Year ended March 31, 2016 2015 2014 Current: United States $ 24.0 $ 17.2 $ 0.8 Non-United States 15.3 15.6 14.6 State and local 3.9 4.7 1.6 Total current 43.2 37.5 17.0 Deferred: United States (10.2 ) (8.2 ) (8.6 ) Non-United States 1.1 (10.5 ) (16.4 ) State and local (17.0 ) (2.0 ) (2.0 ) Total deferred (26.1 ) (20.7 ) (27.0 ) Provision (benefit) for income taxes $ 17.1 $ 16.8 $ (10.0 ) The provision (benefit) for income taxes differs from the United States statutory income tax rate due to the following items (in millions): Year ended March 31, 2016 2015 2014 Provision for income taxes at U.S. federal statutory income tax rate $ 30.1 $ 37.9 $ 5.2 State and local income taxes, net of federal benefit 2.7 2.6 (1.1 ) Net effects of foreign rate differential (3.0 ) (3.3 ) (3.6 ) Net effects of foreign related operations (2.1 ) 8.9 5.7 Net effect to deferred taxes for changes in tax rates (0.8 ) 0.2 0.6 Unrecognized tax benefits, net of federal benefit (11.3 ) (0.5 ) (4.7 ) Domestic production activities deduction (1.3 ) (2.3 ) — Change in valuation allowance 2.3 (27.4 ) (11.5 ) Other 0.5 0.7 (0.6 ) Provision (benefit) for income taxes $ 17.1 $ 16.8 $ (10.0 ) The provision (benefit) for income taxes was calculated based upon the following components of income (loss) before income taxes (in millions): Year ended March 31, 2016 2015 2014 United States $ 45.3 $ 89.9 $ (25.9 ) Non-United States 40.7 18.7 40.9 Income before income taxes $ 86.0 $ 108.6 $ 15.0 Deferred Income Tax Assets and Liabilities Deferred income taxes consist of the tax effects of the following temporary differences (in millions): March 31, 2016 March 31, 2015 Deferred tax assets: Compensation and retirement benefits $ 84.4 $ 86.9 General accruals and reserves 18.3 16.9 State tax net operating loss carryforwards 19.6 20.9 Foreign tax credit carryforwards 4.3 26.5 Foreign net operating loss carryforwards 17.7 17.1 Other 14.5 15.3 Total deferred tax assets before valuation allowance 158.8 183.6 Valuation allowance (27.2 ) (25.0 ) Total deferred tax assets 131.6 158.6 Deferred tax liabilities: Property, plant and equipment 42.8 47.8 Inventories 30.1 30.8 Intangible assets and goodwill 197.7 218.5 Cancellation of indebtedness 43.4 58.8 Total deferred tax liabilities 314.0 355.9 Net deferred tax liabilities $ 182.4 $ 197.3 Net amount on Consolidated Balance Sheet consists of: Other assets $ 3.6 $ 6.0 Deferred income taxes (186.0 ) (203.3 ) Net long-term deferred tax liabilities $ (182.4 ) $ (197.3 ) Management has reviewed its deferred tax assets and has analyzed the uncertainty with respect to ultimately realizing the related tax benefits associated with such assets. Based upon this analysis, management has determined that a valuation allowance should be established for certain foreign NOL carryforwards and related deferred tax assets, as well as certain state NOL carryforwards as of March 31, 2016. Significant factors considered by management in this determination included the historical operating results of the Company, as well as anticipated reversals of future taxable temporary differences. Similarly, a valuation allowance was recorded at March 31, 2015 for certain foreign NOL carryforwards and related deferred tax assets, as well as certain state NOL carryforwards for which utilization was deemed uncertain. The increase in the valuation allowance presented above was generally due to a change in management’s view that the realization of certain foreign NOL carryforwards and other related deferred tax assets is no longer deemed more-likely-than-not. The carryforward period for the foreign tax credit is ten years. The carryforward period for the U.S. federal NOL carryforward is twenty years. The carryforward periods for the state NOLs range from five to twenty years. Certain foreign NOL carryforwards are subject to a five year expiration period, and the carryforward period for the remaining foreign NOLs is indefinite. At March 31, 2016, the Company had approximately $508.9 million of state NOL carryforwards, expiring over various years ending through March 31, 2036. The Company has a valuation allowance of $18.1 million recorded against the related deferred tax asset. In addition, at March 31, 2016, the Company had approximately $79.0 million of foreign NOL carryforwards in which the majority of these losses can be carried forward indefinitely. There exists a valuation allowance of $7.2 million against these NOL carryforwards as well as other related deferred tax assets. No provision has been made for United States federal income taxes related to approximately $174.8 million of undistributed earnings of foreign subsidiaries considered to be permanently reinvested. Due to the resulting additional foreign tax credits, the additional income tax liability that would result if such earnings were repatriated to the U.S., other than potential out-of-pocket withholding taxes of approximately $4.4 million , would not be expected to be significant to the Company’s consolidated financial statements. The Company’s total liability for net accrued income taxes as of March 31, 2016 and March 31, 2015 was $13.3 million and $17.9 million , respectively. This net amount was presented in the consolidated balance sheet as Income taxes payable (as separately disclosed in Other current liabilities) of $15.0 million and $19.2 million as of March 31, 2016 and March 31, 2015, respectively; and as income taxes receivable (included in Other current assets) of $1.7 million and $1.3 million as of March 31, 2016 and March 31, 2015, respectively. Net cash paid for income taxes to governmental tax authorities for the years ended March 31, 2016 , 2015 and 2014 was $46.9 million , $21.2 million and $13.6 million , respectively. Liability for Unrecognized Tax Benefits The Company's total liability for net unrecognized tax benefits as of March 31, 2016 and March 31, 2015 was $15.6 million and $26.6 million , respectively. The following table represents a reconciliation of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 31, 2016 and March 31, 2015 (in millions): Year Ended March 31, 2016 2015 Balance at beginning of period $ 21.7 $ 20.9 Additions based on tax positions related to the current year 0.8 3.2 Additions for tax positions of prior years 1.2 — Reductions for tax positions of prior years (0.1 ) — Reductions due to lapse of applicable statute of limitations (10.3 ) (1.7 ) Cumulative translation adjustment (0.1 ) (0.7 ) Balance at end of period $ 13.2 $ 21.7 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of March 31, 2016 and March 31, 2015 , the total amount of unrecognized tax benefits includes $3.8 million and $12.4 million of gross accrued interest and penalties, respectively. The amount of interest and penalties recorded as income tax (benefit) expense during the fiscal years ended March 31, 2016 , 2015 , and 2014 was $(8.6) million , $0.7 million , and $(0.6) million , respectively. 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. As of the fiscal year ended March 31, 2016 , the Company is undergoing routine, periodic income tax examinations in both domestic and foreign jurisdictions (including a review of a few specific items on certain of the Company’s Netherlands companies' corporate income tax returns for the tax years ended March 31, 2011, through 2013). In addition, a number of the Company's German subsidiaries are under examination for their German corporate and trade tax returns for the tax years ended March 31, 2011 through 2014. Similarly, a number of the Company’s Italian subsidiaries are under examination with respect to their corporate income tax returns for the tax years ended March 31, 2013 through 2015. During the second quarter of fiscal 2016, the U.S. Internal Revenue Service completed an income tax examination of the Company’s U.S. Consolidated federal income tax return for the tax year ended March 31, 2013. The conclusion of the audit resulted in no changes to previously reported taxable income or income tax for such return. It appears reasonably possible that the amounts of unrecognized income tax benefits could change in the next twelve months upon conclusion of the Company’s current ongoing 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, 2013, state and local income tax examinations for years ending prior to fiscal 2012 or significant foreign income tax examinations for years ending prior to fiscal 2011. With respect to the Company's U.S. federal NOL carryforward (which was fully utilized for the tax year ended March 31, 2015), the short tax period from July 21, 2006 to March 31, 2007 (due to a change in control of the Company) and the tax years ended March 31, 2008, 2009, 2010, 2011 and 2012 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 currently open tax years. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and 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 its sale of the Company, 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 300 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 Company's 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 March 31, 2016 , Zurn and numerous other unrelated companies were defendants in approximately 6,000 asbestos related lawsuits representing approximately 19,000 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 March 31, 2016 , the Company estimates the potential liability for the asbestos-related claims described above as well as the claims expected to be filed to be approximately $32.0 million of which Zurn expects its insurance carriers to pay approximately $23.0 million in the next ten years on such claims, with the balance of the estimated liability being paid in subsequent years. The $32.0 million was developed based on actuarial studies and represents the projected indemnity payout for current and future claims. The balance decreased by $3.0 million in fiscal 2016. 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 and could be substantial. Management estimates that its available insurance to cover this potential asbestos liability as of March 31, 2016 , is approximately $244.9 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 $168.9 million of aggregate liabilities. As of March 31, 2016 , the Company had a recorded receivable from its insurance carriers of $32.0 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 $244.9 million of insurance coverage will ultimately be available or that this asbestos liability will not ultimately exceed $244.9 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. Certain Company subsidiaries, were named as defendants in a number of individual and class action lawsuits in various United States courts claiming damages due to the alleged failure or anticipated failure of Zurn brass fittings on the PEX plumbing systems in homes and other structures. In fiscal 2013, 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 such fittings, 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 fiscal 2013, and utilizes a seven year claims fund, which is capped at $20.0 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 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. |
Common Stock Repurchases and Pu
Common Stock Repurchases and Public Offerings | 12 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Common Stock Repurchases and Public Offerings | Common stock repurchases and public offerings Issuer Purchases of Equity Securities In February 2015, the Company's Board of Directors approved a common stock repurchase program (the "Repurchase Program") authorizing the repurchase of up to $200.0 million of the Company's common stock from time to time on the open market or in privately negotiated transactions. The Repurchase Program does not require the Company to acquire any particular amount of common stock and does not specify the timing of purchases or the prices to be paid. During fiscal 2016, the Company repurchased 1,552,500 shares of common stock at a total cost of $40.0 million . The repurchased shares were canceled by the Company upon receipt. At March 31, 2016 , approximately $160.0 million of repurchase authority remained. Fiscal 2014 Common Stock Offering In fiscal 2014, the Company closed a public offering of shares of its common stock. As part of that offering, the Company sold 3,000,000 shares of common stock, at a public offering price of $25.75 per share for aggregate offering proceeds of $73.8 million , net of underwriting discounts and commissions and other direct costs of the offering. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Mar. 31, 2016 | |
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 a comprehensive range of specified, highly-engineered mechanical components used within complex systems where our customers' reliability requirements and costs of failure or downtime are high. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components, and related value-added services. Products and services are marketed and sold globally under widely recognized brand names, including Rexnord ® , Rex ® , FlatTop ™ , Falk ® , and Link-Belt ® . Process & Motion Control products and services are sold into a diverse group of attractive end markets, including food and beverage, aerospace, mining, petrochemical, energy and power generation, cement and aggregates, forest and wood products, agriculture, and general industrial and automation applications. 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 water control and safety, water distribution and drainage, finish plumbing, and site works products for primarily nonresidential buildings and flow control products for water and wastewater treatment infrastructure markets. Products are marketed and sold under widely recognized brand names, including Zurn®, Wilkins®, and VAG®. 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 2 ). Business Segment Information: (in Millions) Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Net sales by product Process & Motion Control: Original equipment manufacturers/ end-users $ 572.3 $ 642.1 $ 621.1 Maintenance, repair, and operations 528.0 588.1 617.1 Total Process & Motion Control $ 1,100.3 $ 1,230.2 $ 1,238.2 Water Management: Water safety, quality, flow control and conservation 534.1 517.1 465.6 Water infrastructure 289.4 302.9 330.5 Total Water Management 823.5 820.0 796.1 Consolidated net sales $ 1,923.8 $ 2,050.2 $ 2,034.3 Income (loss) from operations Process & Motion Control $ 146.8 $ 219.6 $ 237.7 Water Management 72.8 79.0 72.2 Corporate (45.3 ) (94.9 ) (37.5 ) Consolidated $ 174.3 $ 203.7 $ 272.4 Non-operating expense: Interest expense, net $ (91.4 ) $ (87.9 ) $ (109.1 ) Loss on the extinguishment of debt — — (133.2 ) Other income (expense), net 3.1 (7.2 ) (15.1 ) Income from continuing operations before income taxes 86.0 108.6 15.0 Provision (benefit) provision for income taxes 17.1 16.8 (10.0 ) Net income from continuing operations $ 68.9 $ 91.8 $ 25.0 (Loss) income from discontinued operations, net of tax (1.4 ) (8.0 ) 4.6 Net income 67.5 83.8 29.6 Non-controlling interest loss (0.4 ) — (0.6 ) Net income attributable to Rexnord $ 67.9 $ 83.8 $ 30.2 Depreciation and Amortization Process & Motion Control $ 77.3 $ 74.1 $ 69.7 Water Management 38.1 38.1 37.2 Consolidated $ 115.4 $ 112.2 $ 106.9 Capital Expenditures Process & Motion Control $ 43.6 $ 37.7 $ 39.4 Water Management 8.5 11.1 12.8 Consolidated $ 52.1 $ 48.8 $ 52.2 March 31, 2016 March 31, 2015 March 31, 2014 Total Assets Process & Motion Control $ 2,412.7 $ 2,419.0 $ 2,251.4 Water Management 933.2 981.9 1,038.7 Corporate 8.9 8.4 80.7 Consolidated $ 3,354.8 $ 3,409.3 $ 3,370.8 Net sales to third parties and long-lived assets by geographic region are as follows (in millions): Net Sales Long-lived Assets Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 March 31, 2016 March 31, 2015 March 31, 2014 United States $ 1,306.9 $ 1,380.0 $ 1,337.2 $ 276.0 $ 279.4 $ 284.6 Europe 370.8 374.0 409.1 80.5 92.1 98.6 Rest of World 246.1 296.2 288.0 40.7 46.1 40.5 $ 1,923.8 $ 2,050.2 $ 2,034.3 $ 397.2 $ 417.6 $ 423.7 Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for long-lived assets are based on the location of the entity that holds such assets. In accordance with ASC 280, Segment Reporting , long-lived assets includes movable assets and excludes net intangible assets and goodwill. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) (in millions, except per share amounts) Fiscal 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales $ 485.1 $ 485.9 $ 460.2 $ 492.6 $ 1,923.8 Gross profit 169.8 169.3 158.3 167.8 665.2 Net income from continuing operations 21.2 22.6 24.3 0.8 68.9 Loss from discontinued operations, net of tax — — — (1.4 ) (1.4 ) Net income (loss) 21.2 22.6 24.3 (0.6 ) 67.5 Non-controlling interest (loss) (0.1 ) — (0.1 ) (0.2 ) (0.4 ) Net income (loss) attributable to Rexnord 21.3 22.6 24.4 (0.4 ) 67.9 Net income per share from continuing operations: Basic $ 0.21 $ 0.23 $ 0.24 $ 0.01 $ 0.68 Diluted $ 0.20 $ 0.22 $ 0.24 $ 0.01 $ 0.67 (Loss) per share from discontinued operations: Basic $ — $ — $ — $ (0.01 ) $ (0.01 ) Diluted — — — $ (0.01 ) $ (0.01 ) Net income per share attributable to Rexnord: Basic $ 0.21 $ 0.23 $ 0.24 $ — $ 0.67 Diluted $ 0.20 $ 0.22 $ 0.24 $ — $ 0.66 Fiscal 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales $ 503.6 $ 531.0 $ 497.1 $ 518.5 $ 2,050.2 Gross profit 178.2 197.0 181.5 189.5 746.2 Net income (loss) from continuing operations 11.6 37.8 6.7 35.7 91.8 Income (loss) from discontinued operations, net of tax 0.4 (0.7 ) (4.5 ) (3.2 ) (8.0 ) Net income (loss) 12.0 37.1 2.2 32.5 83.8 Non-controlling interest (loss) income (0.1 ) (0.1 ) — 0.2 — Net income (loss) attributable to Rexnord 12.1 37.2 2.2 32.3 83.8 Net income per share from continuing operations: Basic $ 0.11 $ 0.37 $ 0.07 $ 0.35 $ 0.90 Diluted $ 0.11 $ 0.36 $ 0.06 $ 0.34 $ 0.88 Income (loss) per share from discontinued operations: Basic $ — $ (0.01 ) $ (0.04 ) $ (0.03 ) $ (0.08 ) Diluted $ — $ (0.01 ) $ (0.04 ) $ (0.03 ) $ (0.08 ) Net income per share attributable to Rexnord: Basic $ 0.12 $ 0.37 $ 0.02 $ 0.32 $ 0.82 Diluted $ 0.12 $ 0.36 $ 0.02 $ 0.31 $ 0.80 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Former Stockholders' Agreements In connection with Apollo's acquisition of the Company in 2006, the Company entered into two separate stockholders' agreements - one with Rexnord Acquisition Holdings I, LLC, Rexnord Acquisition Holdings II, LLC (together with Rexnord Acquisition Holdings I, LLC, the “Apollo Holders”) and certain other of its stockholders, and the other with the Apollo Holders, George M. Sherman (the Company's former Chairman of the Board of Directors) and entities then-controlled by Mr. Sherman (collectively, the “Stockholders' Agreements”). All terms of the Stockholders' Agreements terminated upon the consummation of the Company's IPO, except for the registration rights provisions described below. Under the terms of the Stockholders' Agreements, the Company agreed to register shares of its common stock owned by affiliates of the Apollo Holders and by Mr. Sherman, as well as bear related expenses of offerings by them, in certain circumstances. Three times in fiscal 2015 and twice is fiscal 2014, the Apollo Holders exercised their registration rights with respect to their shares. Consequently, pursuant to the Stockholders’ Agreements, the Company was required to pay all of the offering expenses (other than underwriters’ discounts and commissions on the shares of common stock sold by the Apollo Holders or Mr. Sherman and affiliated entities) related to those offerings. The offering expenses (excluding such underwriters’ discounts and commissions) paid by the Company on behalf of the selling stockholders were $0.5 million and $1.4 million for the offerings completed in fiscal 2015 and 2014, respectively. Following these offerings, Apollo no longer owns any shares of the Company's stock. Other Apollo Global Securities, LLC, which was one of the underwriters in one of the fiscal 2015 securities offerings and each of the fiscal 2014 offerings, is an affiliate of Apollo. Apollo Global Securities, LLC received (on a pro rata basis) discounts and commissions of approximately $0.1 million related to the sale of securities by Rexnord as part of the February 2014 offering. The underwriters’ discounts and commissions related to the shares sold by Apollo Holders or Mr. Sherman and affiliated entities in the fiscal 2015 and fiscal 2014 offerings were paid by them and not by the Company. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts (in Millions) Additions Description Balance at Beginning of Year Charged to Costs and Expenses Acquired Obligations Charged to Other Accounts Deductions (1) Balance at End of Year Fiscal Year 2014: Valuation allowance for trade and notes receivable $ 7.7 $ 1.0 $ 0.2 $ (0.1 ) $ (2.4 ) $ 6.4 Valuation allowance for excess and obsolete inventory 30.5 3.8 4.1 0.2 (4.8 ) 33.8 Valuation allowance for income taxes 73.1 3.9 — — (22.6 ) 54.4 Fiscal Year 2015: Valuation allowance for trade and notes receivable $ 6.4 $ 10.7 $ 0.6 $ (0.4 ) $ (0.5 ) $ 16.8 Valuation allowance for excess and obsolete inventory 33.8 5.2 0.8 (0.6 ) (3.5 ) 35.7 Valuation allowance for income taxes 54.4 2.0 — — (31.4 ) 25.0 Fiscal Year 2016: Valuation allowance for trade and notes receivable $ 16.8 $ (6.8 ) $ — $ (0.1 ) $ (1.0 ) $ 8.9 Valuation allowance for excess and obsolete inventory 35.7 9.5 — (0.3 ) (7.3 ) 37.6 Valuation allowance for income taxes 25.0 4.2 — — (2.0 ) 27.2 (1) Uncollectible amounts, dispositions charged against the accrual and utilization of net operating losses. All other schedules have been omitted because they are not applicable or because the information required is included in the notes to the consolidated financial statements. (a) (3) Exhibits. See Exhibit Index included after the signature page to this report, which Exhibit Index is incorporated by reference herein. |
Significant Accounting Polici32
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the fiscal 2016 presentation. |
Revenue Recognition | Revenue Recognition Net sales are recorded upon transfer of title and risk of product loss to the customer. Net sales relating to any particular shipment are based upon the amount invoiced for the delivered goods less estimated future rebate payments and sales returns which are based upon the Company’s historical experience. Revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. The value of returned goods during the years ended March 31, 2016 , 2015 and 2014 was approximately 1.0% or less of net sales. Other than a standard product warranty, there are no post-shipment obligations. The Company classifies shipping and handling fees billed to customers as net sales and the corresponding costs are classified as cost of sales in the consolidated statements of operations. |
Stock Based Compensation | Stock-Based Compensation The Company accounts for stock based compensation in accordance with Accounting Standards Codification ("ASC") 718, Accounting for Stock Compensation ("ASC 718"). ASC 718 requires compensation costs related to stock-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. Compensation cost is recognized over the requisite service period, generally as the awards vest. See further discussion of the Company’s equity plans in Note 15 , Stock-Based Compensation. |
Per Share Data | Per Share Data Basic net income (loss) per share from continuing and discontinued operations is computed by dividing net income from continuing operations and (loss) income from discontinued operations, respectively, by the corresponding weighted average number of common shares outstanding for the period. Diluted net income (loss) per share from continuing and discontinued operations 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. |
Receivables | Receivables Receivables are stated net of allowances for doubtful accounts of $8.9 million at March 31, 2016 and $16.8 million at March 31, 2015 . The Company evaluates the collectability of its receivables and establishes the allowance for doubtful accounts based on a combination of specific customer circumstances and historical write-off experience. Credit is extended to customers based upon an evaluation of their financial position. Generally, advance payment is not required. Allowances for doubtful accounts established are recorded within Selling, general and administrative expenses within the consolidated statements of operations. |
Inventories | Inventories Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at the lower of cost or market. Market is determined based on estimated net realizable values. Approximately 64% of the Company’s total inventories as of both March 31, 2016 and 2015 were valued using the “last-in, first-out” (LIFO) method. All remaining inventories are valued using the “first-in, first-out” (FIFO) method. In some cases, the Company has determined a certain portion of inventories are excess or obsolete. In those cases, the Company writes down the value of those inventories to their net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are more or less favorable than those projected by management, adjustments to established inventory reserves may be required. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is provided using the straight-line method over 10 to 30 years for buildings and improvements, 5 to 10 years for machinery and equipment and 3 to 5 years for computer hardware and software. Where appropriate, the depreciable lives of certain assets may be adjusted to reflect a change in the use of those assets, or depreciation may be accelerated in the case of an eventual asset disposal. Maintenance and repair costs are expensed as incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets consist of acquired trademarks and tradenames, customer relationships (including distribution network) and patents. The customer relationships, patents, and certain tradenames are being amortized using the straight-line method over their estimated useful lives of 3 to 20 years, 3 to 15 years, and 3 to 10 years, respectively. Goodwill, trademarks and certain tradenames have indefinite lives and are not amortized. However, the goodwill and intangible assets are tested annually for impairment using a discounted cash flow and market value approach analysis and may be tested more frequently if any triggering events occur that would reduce the recoverability of the asset. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The carrying value of long-lived assets, including amortizable intangible assets and tangible fixed assets, are evaluated for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment of amortizable intangible assets and tangible fixed assets is generally determined by comparing projected undiscounted cash flows to be generated by the asset, or group of assets, to its carrying value. If impairment is identified, a loss is recorded equal to the excess of the asset's net book value over its fair value, and the cost basis is adjusted. Determination of the fair value requires various estimates including internal cash flow estimates generated from the asset, quoted market prices and appraisals as appropriate to determine fair value. Actual results could vary from these estimates. |
Product Warranty | Product Warranty The Company offers warranties on the sales of certain of its 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. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes (“ASC 740”) . Deferred income taxes are provided for future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses, tax credits and other applicable carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be actually paid or recovered. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of continuing operations in the period that includes the date of enactment. The Company regularly reviews its deferred tax assets for recoverability and provides a valuation allowance against its deferred tax assets if, based upon consideration of all positive and negative evidence, the Company determines that it is more-likely-than-not that a portion or all of the deferred tax assets will ultimately not be realized in future tax periods. Such positive and negative evidence would include review of historical earnings and losses, anticipated future earnings, the time period over which the temporary differences and carryforwards are anticipated to reverse and implementation of feasible, prudent tax planning strategies. The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining the Company's worldwide provision for income taxes and recording the related deferred tax assets and liabilities. In the ordinary course of the Company's business, there is inherent uncertainty in quantifying the ultimate tax outcome of all of the numerous transactions and required calculations relating to the Company's tax positions. Accruals for unrecognized tax benefits are provided for in accordance with the requirements of ASC 740 . An unrecognized tax benefit represents the difference between the recognition of benefits related to uncertain tax positions for income tax reporting purposes and financial reporting purposes. The Company has established a reserve for interest and penalties, as applicable, for uncertain tax positions and it is recorded as a component of the overall income tax provision. The Company is subject to periodic income tax examinations by domestic and foreign income tax authorities. Although the outcome of income tax examinations is always uncertain, the Company believes that it has appropriate support for the positions taken on its income tax returns and has adequately provided for potential income tax assessments. Nonetheless, the amounts ultimately settled relating to issues raised by the taxing authorities may differ materially from the amounts accrued for each year. |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to certain financial risks relating to fluctuations in foreign currency exchange rates and interest rates. The Company selectively uses foreign currency forward contracts and interest rate derivatives to manage its foreign currency and interest rate risks. All hedging transactions are authorized and executed pursuant to defined policies and procedures which prohibit the use of financial instruments for speculative purposes. The Company accounts for derivative instruments in accordance with ASC 815, Accounting for Derivative Instruments and Hedging Activities (“ASC 815”). ASC 815 requires companies to recognize all of its derivative instruments as either assets or liabilities in the balance sheet at fair value. Fair value is defined under ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), 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. The accounting for changes in the fair value of a derivative instrument depends on whether the derivative instrument has been designated and qualifies as part of a hedging relationship and further, on the type of hedging relationship. As of March 31, 2016 and 2015 , the Company had forward-starting interest rate swaps and interest rate caps on its variable rate term debt that are designated and qualify as hedging instruments. For the derivative instruments designated and qualifying as effective hedging instruments under ASC 815, the changes in the fair value of the effective portion of the instrument are recognized in accumulated other comprehensive loss whereas any changes in the fair value of a derivative instrument that is not designated or does not qualify as an effective hedge are recorded in other non-operating expense. See Note 12 , Derivative Financial Instruments , for further information regarding the classification and accounting. Financial Instrument Counterparties The Company is exposed to credit losses in the event of non-performance by counterparties to its financial instruments. The Company anticipates, however, that counterparties will be able to fully satisfy their obligations under these instruments. The Company places cash and temporary investments and foreign currency and interest rate swap and cap contracts with various high-quality financial institutions. Although the Company does not obtain collateral or other security to support these financial instruments, it does periodically evaluate the credit-worthiness of each of its counterparties. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. dollar are translated into U.S. dollars using exchange rates at the end of the respective period. Revenues and expenses of such entities are translated at average exchange rates in effect during the respective period. Foreign currency translation adjustments are included as a component of accumulated other comprehensive loss. Currency transaction losses are included in other expense, net in the consolidated statements of operations |
Advertising Costs | Advertising Costs Advertising costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred |
Research, Development and Engineering Costs | Research, Development and Engineering Costs Research, development and engineering costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and temporary investments, forward currency contracts and trade accounts receivable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual and interim periods beginning in 2017 with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-09 on its consolidated financial statements. In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02''), which requires management to recognize lease assets and lease liabilities by lessees for all operating leases on the consolidated balance sheets. ASU 2016-02 is effective for the Company's fiscal 2019 and interim periods included therein on a modified retrospective basis. The Company is currently evaluating the impact this guidance will have on its financial statements upon adoption. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes ("ASU 2015-17") . ASU 2015-17 changes how deferred taxes are classified on the balance sheet, eliminating the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. ASU 2015-17 is effective for fiscal years and interim periods within those years beginning after December 15, 2016. The Company elected to early adopt ASU 2015-17 for fiscal 2016 on a retrospective basis in order to enhance comparability. Accordingly, the Company has presented prior period amounts for deferred income taxes in a manner that conforms to the current period presentation. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments ("ASU 2015-16"), which removes the requirement to restate prior periods to reflect adjustments made to provisional amounts. Rather, adjustments to the provisional amounts are to be recognized in the reporting period in which the adjustments are recognized. The adjustments related to previous reporting periods since the acquisition date must be disclosed by income statement line item either on the face of the income statement or in the notes. As permitted by ASU 2015-16, the Company elected to early adopt this guidance beginning in the second quarter of fiscal 2016 with no material impact to the financial statements or related notes thereto. In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory ("ASU 2015-11"). ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. Under existing guidance, net realizable value is one of several calculations needed to measure inventory at lower of cost or market and as such, the new guidance reduces the complexity in measurement. ASU 2015-11 is effective for the Company's first quarter of fiscal year 2018, with early adoption is permitted, and must be applied prospectively. The Company is currently evaluating the impact of the adoption of this requirement on the consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). The amendments in ASU 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement of debt issuance costs is not affected by the amendments in this update. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015 and is required to be applied retrospectively to all prior periods presented. As permitted by ASU 2015-03, the Company elected to early adopt this guidance beginning with the first quarter of fiscal 2016, which resulted in the reclassification of $10.5 million of unamortized debt issuance costs from other assets to long-term debt on the consolidated balance sheets as of March 31, 2015 . Refer to Note 11, Long-Term Debt for additional discussion regarding debt instruments and related classification. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers ("ASU 2014-09") 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 2019 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 its consolidated financial statements. In the first quarter of 2016 , the Company adopted FASB 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. As this guidance is a prospective change, the significance of ASU 2014-08 for the Company is dependent on any future dispositions or disposals. |
Significant Accounting Polici33
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in the Company’s product warranty liability during each of the periods presented (in millions): Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 Balance at beginning of period $ 6.8 $ 8.0 $ 7.7 Acquired obligations — — 0.2 Charged to operations 2.8 1.8 3.9 Claims settled (2.8 ) (3.0 ) (3.8 ) Balance at end of period $ 6.8 $ 6.8 $ 8.0 |
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, for the fiscal years ending March 31, 2016 , 2015 and 2014 are as follows (in millions): Interest Rate Derivatives Foreign Currency Translation Pension and Postretirement Plans Total Balance April 1, 2013 — 0.7 (39.4 ) (38.7 ) Other comprehensive (loss) income before reclassifications (1.7 ) 7.1 10.5 15.9 Amounts reclassified from accumulated other comprehensive loss — — (1.0 ) (1.0 ) Net current period other comprehensive (loss) income (1.7 ) 7.1 9.5 14.9 Balance at March 31, 2014 (1.7 ) 7.8 (29.9 ) (23.8 ) Other comprehensive loss before reclassifications (10.9 ) (84.3 ) (14.1 ) (109.3 ) Amounts reclassified from accumulated other comprehensive loss — — 2.9 2.9 Net current period other comprehensive loss (10.9 ) (84.3 ) (11.2 ) (106.4 ) Balance at March 31, 2015 $ (12.6 ) $ (76.5 ) $ (41.1 ) $ (130.2 ) Other comprehensive (loss) income before reclassifications (4.3 ) (10.0 ) 6.7 (7.6 ) Amounts reclassified from accumulated other comprehensive loss — — (1.2 ) (1.2 ) Net current period other comprehensive (loss) income (4.3 ) (10.0 ) 5.5 (8.8 ) Balance at March 31, 2016 $ (16.9 ) $ (86.5 ) $ (35.6 ) $ (139.0 ) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the fiscal years ending March 31, 2016 , 2015 and 2014 (in millions): Pension and postretirement plans Year Ending March 31, 2016 Year Ending March 31, 2015 Year Ending March 31, 2014 Income Statement Line Item Amortization of prior service credit $ (1.9 ) $ (1.7 ) $ (1.7 ) Selling, general and administrative expenses Lump Sum Settlement — 6.5 — Actuarial loss on pension and postretirement benefit obligations Provision (benefit) for income taxes 0.7 (1.9 ) 0.7 Total, net of income taxes $ (1.2 ) $ 2.9 $ (1.0 ) |
Research, Development and Engineering Costs | Research, development and engineering costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred and for the years ended March 31, 2016 , 2015 and 2014 amounted to the following (in millions): Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 Research and development costs $ 12.4 $ 12.8 $ 13.0 Engineering costs 24.8 26.0 28.4 Total $ 37.2 $ 38.8 $ 41.4 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of Discontinued Operations | The following table summarizes the results of the Mill Products business included within (loss) income from discontinued operations, net of tax on the consolidated statements of operations (in millions): Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Net sales $ — $ 34.1 $ 47.7 (Loss) income from operations before income taxes (2.2 ) (10.9 ) 7.2 (Benefit) provision for income taxes (0.8 ) (2.9 ) 2.6 Net (loss) income from discontinued operations $ (1.4 ) $ (8.0 ) $ 4.6 Net (loss) income per share from discontinued operations: Basic $ (0.01 ) $ (0.08 ) $ 0.05 Diluted $ (0.01 ) $ (0.08 ) $ 0.05 |
Restructuring and Other Simil35
Restructuring and Other Similar Charges (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs by Operating Segment | The following table summarizes the Company's restructuring and other similar costs incurred during the years ended March 31, 2016 , 2015 and 2014 by classification of operating segment (in millions): Year Ended March 31, 2016 Process & Motion Control Water Management Corporate Consolidated Severance costs $ 10.8 $ 4.2 $ 0.3 $ 15.3 Asset impairment charges (1) 1.0 16.5 — $ 17.5 Lease termination and other costs 0.5 1.6 — 2.1 Total restructuring and other similar costs $ 12.3 $ 22.3 $ 0.3 $ 34.9 Year Ended March 31, 2015 Process & Motion Control Water Management Corporate Consolidated Severance costs $ 7.6 $ 3.3 $ — $ 10.9 Lease termination and other costs 1.2 0.8 — 2.0 Total restructuring and other similar costs $ 8.8 $ 4.1 $ — $ 12.9 Year Ended March 31, 2014 Process & Motion Control Water Management Corporate Consolidated Severance costs $ 3.3 $ 2.0 $ 0.8 $ 6.1 Lease termination and other costs 1.6 0.7 — 2.3 Total restructuring and other similar costs $ 4.9 $ 2.7 $ 0.8 $ 8.4 Restructuring Costs To-date (Period from April 1, 2013 to March 31, 2016) Process & Motion Control Water Management Corporate Consolidated Severance costs $ 21.7 $ 9.5 $ 1.1 $ 32.3 Asset impairment charges 1.0 16.5 — $ 17.5 Lease termination and other costs 3.3 3.1 — 6.4 Total restructuring and other similar costs $ 26.0 $ 29.1 $ 1.1 $ 56.2 (1) In connection with the fiscal 2016 footprint optimization initiatives and the decision to exit the non-strategic Rodney Hunt® Fontaine® (“RHF”) flow control gate product line, the Company recognized impairment charges associated with related fixed assets and intangible assets of $6.6 million and $10.9 million , respectively. The impairment of fixed assets was determined utilizing independent appraisals of the assets, classified as Level 3 inputs within the Fair Value hierarchy. Refer to Note 13 for additional information. Following the Company’s decision to exit the RHF product line, the Company deemed certain intangible assets associated with the RHF tradename, customer relationships and patents had no future value resulting in impairment charges of $10.4 million , $0.3 million and $0.2 million , respectively. Pre-tax loss from operations associated with this non-strategic exit of the RHF product-line were as follows in each of the last three fiscal years: Years ending March 31, Pre-tax Loss Description 2016 $ (43.1 ) Includes asset impairments described above and other restructuring charges (primarily severance costs) of $16.5 million and $2.9 million, respectively 2015 (14.0 ) Includes other restructuring charges (primarily severance costs) of $2.2 million 2014 (10.1 ) Includes other restructuring charges of (primarily severance costs) $0.3 million |
Accrual For Restructuring Costs | The following table summarizes the activity in the Company's accrual for restructuring costs for the fiscal years ended March 31, 2016 and 2015 (in millions): Severance Costs Asset impairment charges Lease Termination and Other Costs Total Accrued Restructuring Costs, March 31, 2014 $ 3.4 $ — $ 0.4 $ 3.8 Charges 10.9 — 2.0 12.9 Cash payments (7.6 ) — (1.3 ) (8.9 ) Non-cash charges — — (0.8 ) (0.8 ) Accrued Restructuring Costs, March 31, 2015 (1) 6.7 — 0.3 7.0 Charges 15.3 17.5 2.1 34.9 Cash payments (11.5 ) — (2.1 ) (13.6 ) Non-cash charges — (17.5 ) — (17.5 ) Accrued Restructuring Costs, March 31, 2016 (1) $ 10.5 $ — $ 0.3 $ 10.8 (1) The restructuring accrual is included in Other current liabilities on the consolidated balance sheets. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories | The major classes of inventories are summarized as follows (in millions): March 31, 2016 2015 Finished goods $ 148.4 $ 168.5 Work in progress 55.3 70.7 Purchased components 67.6 69.9 Raw materials 49.3 52.8 Inventories at First-in, First-Out ("FIFO") cost 320.6 361.9 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 6.6 5.8 $ 327.2 $ 367.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net is summarized as follows (in millions): March 31, 2016 2015 Land $ 31.2 $ 33.5 Buildings and improvements 210.8 217.7 Machinery and equipment 401.0 388.2 Hardware and software 65.4 61.5 Construction in-progress 37.6 25.9 746.0 726.8 Less accumulated depreciation (348.8 ) (309.2 ) $ 397.2 $ 417.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Net Carrying Value of Goodwill and Identifiable Intangible Assets | The changes in the net carrying value of goodwill and identifiable intangible assets for the years ended March 31, 2016 and 2015 by operating segment, are presented below (in millions): Amortizable Intangible Assets Goodwill Indefinite Lived Intangible Assets Trade-Names Customer Relationships Patents Total Identifiable Intangible Assets Excluding Goodwill Process & Motion Control Net carrying amount as of March 31, 2014 $ 904.0 $ 197.6 $ 1.9 $ 94.4 $ 3.7 $ 297.6 Acquisitions 54.7 — 5.2 51.6 — 56.8 Purchase price allocation adjustments (1) 1.8 (3.1 ) 1.3 — — (1.8 ) Amortization — — (1.0 ) (31.0 ) (1.2 ) (33.2 ) Currency translation adjustment and other (2) (10.6 ) (1.6 ) (0.1 ) (2.0 ) — (3.7 ) Net carrying amount as of March 31, 2015 $ 949.9 $ 192.9 $ 7.3 $ 113.0 $ 2.5 $ 315.7 Purchase price allocation adjustments (1) (4.8 ) — 4.2 — — 4.2 Amortization — — (1.7 ) (32.9 ) (1.2 ) (35.8 ) Currency translation adjustment and other (2.7 ) (2.2 ) (0.7 ) (1.1 ) 0.6 (3.4 ) Net carrying amount as of March 31, 2016 $ 942.4 $ 190.7 $ 9.1 $ 79.0 $ 1.9 $ 280.7 Water Management Net carrying amount as of March 31, 2014 $ 246.7 $ 140.8 $ — $ 147.0 $ 7.2 $ 295.0 Acquisitions 20.0 — 1.6 7.3 1.5 10.4 Amortization — — (0.2 ) (19.4 ) (2.3 ) (21.9 ) Currency translation adjustment and other (14.3 ) (5.6 ) — (5.8 ) (0.1 ) (11.5 ) Net carrying amount as of March 31, 2015 $ 252.4 $ 135.2 $ 1.4 $ 129.1 $ 6.3 $ 272.0 Amortization — — (0.3 ) (19.2 ) (2.1 ) (21.6 ) Currency translation adjustment and other (3) (1.0 ) (10.2 ) (0.5 ) (0.1 ) 0.6 (10.2 ) Net carrying amount as of March 31, 2016 $ 251.4 $ 125.0 $ 0.6 $ 109.8 $ 4.8 $ 240.2 Consolidated Net carrying amount as of March 31, 2014 $ 1,150.7 $ 338.4 $ 1.9 $ 241.4 $ 10.9 $ 592.6 Acquisitions 74.7 — 6.8 58.9 1.5 67.2 Purchase price allocation adjustments (1) 1.8 (3.1 ) 1.3 — — (1.8 ) Amortization — — (1.2 ) (50.4 ) (3.5 ) (55.1 ) Currency translation adjustment and other (2) (24.9 ) (7.2 ) (0.1 ) (7.8 ) (0.1 ) (15.2 ) Net carrying amount as of March 31, 2015 $ 1,202.3 $ 328.1 $ 8.7 $ 242.1 $ 8.8 $ 587.7 Purchase price allocation adjustments (1) (4.8 ) — 4.2 — — 4.2 Amortization — — (2.0 ) (52.1 ) (3.3 ) (57.4 ) Currency translation adjustment and other (3) (3.7 ) (12.4 ) (1.2 ) (1.2 ) 1.2 (13.6 ) Net carrying amount as of March 31, 2016 $ 1,193.8 $ 315.7 $ 9.7 $ 188.8 $ 6.7 $ 520.9 ____________________ (1) Refer to Note 3 Acquisitions for additional information regarding purchase price allocation adjustments. (2) Includes $4.1 million of goodwill allocated to the Mill Products business in connection to the Company's decision to discontinue the Mill Products business during fiscal 2015. See Note 4 Discontinued Operations for additional information regarding the discontinued operation. (3) Includes $10.4 million , $0.3 million , and $0.2 million of impairment of indefinite-lived intangible assets, customer relationships and patents, respectively, associated with the exit of the RHF product line. Refer to Note 5 Restructuring and Other Similar Charges, for additional information. |
Gross Carrying Amount and Accumulated Amortization of Identifiable Intangible Assets | The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2016 and March 31, 2015 are as follows (in millions): March 31, 2016 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 41.3 $ (34.6 ) $ 6.7 Customer relationships (including distribution network) 13 years 628.4 (439.6 ) 188.8 Tradenames 8 years 12.7 (3.0 ) 9.7 Intangible assets not subject to amortization - trademarks and tradenames 315.7 — 315.7 $ 998.1 $ (477.2 ) $ 520.9 March 31, 2015 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 40.1 $ (31.3 ) $ 8.8 Customer relationships (including distribution network) 13 years 635.4 (393.3 ) 242.1 Tradenames 8 years 10.0 (1.3 ) 8.7 Intangible assets not subject to amortization - trademarks and tradenames 328.1 — 328.1 $ 1,013.6 $ (425.9 ) $ 587.7 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities are summarized as follows (in millions): March 31, 2016 March 31, 2015 Customer advances $ 8.3 $ 7.0 Sales rebates 28.2 25.4 Commissions 7.9 3.9 Restructuring and other similar charges (1) 10.8 7.0 Product warranty (2) 6.8 6.8 Risk management (3) 9.9 9.4 Legal and environmental 4.6 3.8 Taxes, other than income taxes 6.6 8.0 Income taxes payable 15.0 19.2 Interest payable 5.6 5.5 Other 20.7 19.7 $ 124.4 $ 115.7 ____________________ (1) See more information related to the restructuring obligations balance within Note 5 . (2) See more information related to the product warranty obligations balance within Note 2 . (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt is summarized as follows (in millions): March 31, 2016 2015 Term loans (1) 1,881.0 1,895.8 8.875% Senior notes due 2016 — 1.3 Other (2) 39.1 42.9 Total 1,920.1 1,940.0 Less current maturities 20.2 24.3 Long-term debt $ 1,899.9 $ 1,915.7 ____________________ (1) Includes an unamortized original issue discount and debt issuance costs of $20.2 million and $25.0 million at March 31, 2016 and March 31, 2015 , respectively. (2) Includes unamortized debt issuance costs of $0.6 million at each of March 31, 2016 and 2015. Refer to "Other Subsidiary Debt" below for additional information. |
Schedule of Maturities of Long-Term Debt | Future maturities of debt as of March 31, 2016, excluding the unamortized original issue discount and debt issuance costs of $20.8 million , were as follows (in millions): Years ending March 31: 2017 $ 20.2 2018 19.9 2019 19.9 2020 19.7 2021 1,823.4 Thereafter 37.8 $ 1,940.9 |
Derivative Financial Instrume41
Derivative Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | Fair value of derivatives designated as hedging instruments under ASC 815 (in millions): March 31, 2016 March 31, 2015 Balance Sheet Classification Liability Derivatives Interest rate swaps $ 21.8 $ 17.7 Other liabilities Asset Derivatives Interest rate caps $ 0.3 $ 3.0 Other assets Fair value of derivatives not designated as hedging instruments under ASC 815 (in millions): March 31, 2016 March 31, 2015 Balance Sheet Classification Liability Derivatives Foreign currency forward contracts $ 0.9 $ — Other current liabilities Asset Derivatives Foreign currency forward contracts $ — $ 0.4 Other current assets |
Location and Amount of Losses and Gains - Derivative Instruments | The following tables indicate the location and the amount of losses and gains associated with the Company's derivative instruments, net of tax, within the consolidated balance sheets (for qualifying ASC 815 instruments) and recognized within the 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 March 31, 2016 , there was no ineffectiveness on the Company's designated hedging instruments. Cumulative loss recognized, net of tax, in accumulated other comprehensive loss on derivatives Derivative instruments designated as cash flow hedging relationships under ASC 815 March 31, 2016 March 31, 2015 Interest rate swaps $ 13.5 $ 11.0 Interest rate caps $ 3.4 $ 1.7 Amount recognized in other income (expense), net Derivative instruments not designated as hedging instruments under ASC 815 Location of gain recognized in income on derivatives Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Foreign currency forward contracts Other income (expense), net $ — $ 0.5 $ 0.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Recognized at Fair Value on a Recurring Basis | The following table provides a summary of the Company's assets and liabilities that were recognized at fair value on a recurring basis as of March 31, 2016 and March 31, 2015 (in millions): Fair Value as of March 31, 2016 Level 1 Level 2 Level 3 Total Assets: Interest rate caps $ — $ 0.3 $ — $ 0.3 Total assets at fair value $ — $ 0.3 $ — $ 0.3 Liabilities: Interest rate swaps $ — $ 21.8 $ — $ 21.8 Foreign currency forward contracts $ — $ 0.9 $ — $ 0.9 Total liabilities at fair value $ — $ 22.7 $ — $ 22.7 Fair Value as of March 31, 2015 Level 1 Level 2 Level 3 Total Assets: Interest rate caps $ — $ 3.0 $ — $ 3.0 Foreign currency forward contracts — 0.4 — 0.4 Total assets at fair value $ — $ 3.4 $ — $ 3.4 Liabilities: Interest rate swaps $ — $ 17.7 $ — $ 17.7 Total liabilities at fair value $ — $ 17.7 $ — $ 17.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Leases [Abstract] | |
Future Minimum Rental Payments for Operating Leases | Future minimum rental payments for operating leases with initial terms in excess of one year as of March 31, 2016 are as follows (in millions): Years ending March 31: 2017 $ 14.8 2018 14.6 2019 12.3 2020 10.8 2021 8.2 Thereafter 22.7 $ 83.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Fair Value of Options Granted | The fair value of each option granted under the Incentive Plans was estimated on the date of grant using the Black-Scholes valuation model that uses the following weighted-average assumptions: Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 Expected option term (in years) 6.5 7.1 7.5 Expected volatility factor 24 % 26 % 35 % Weighted-average risk free interest rate 1.82 % 2.10 % 1.57 % Expected dividend rate 0.0 % 0.0 % 0.0 % |
Schedule of Stock Options Activity | Other information relative to stock options and the changes period over period are as follows: Year-Ended March 31, 2016 Year-Ended March 31, 2015 Year-Ended March 31, 2014 Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Number of shares under options: Outstanding at beginning of period 8,588,518 $ 13.04 8,652,834 $ 10.79 9,450,197 $ 9.85 Granted 1,072,556 24.14 1,268,124 28.30 978,849 19.82 Exercised (1) (1,278,017 ) 5.55 (743,807 ) 5.85 (1,154,011 ) 5.91 Canceled/Forfeited (528,372 ) 23.53 (588,633 ) 21.65 (622,201 ) 19.91 Outstanding at end of period (2) 7,854,685 $ 15.10 8,588,518 $ 13.06 8,652,834 $ 10.79 Exercisable at end of period (3) 4,678,216 $ 9.52 4,798,457 $ 5.67 5,225,236 $ 5.46 ______________________ (1) The total intrinsic value of options exercised during fiscal 2016 , 2015 and 2014 was $16.3 million , $16.7 million and $18.7 million , respectively. (2) The weighted average remaining contractual life of options outstanding was 5.0 years at March 31, 2016 , 5.0 years at March 31, 2015 and 5.5 years at March 31, 2014 . The aggregate intrinsic value of options outstanding at March 31, 2016 was $54.8 million . (3) The weighted average remaining contractual life of options exercisable was 3.0 years at March 31, 2016 , 2.6 years at March 31, 2015 and 3.7 years at March 31, 2014 . The aggregate intrinsic value of options exercisable at March 31, 2016 was $52.6 million . Shares Weighted Avg. Exercise Price Nonvested options at beginning of period 3,788,315 $ 22.43 Granted 1,072,556 24.14 Vested (1,220,559 ) 21.09 Canceled/Forfeited (463,843 ) 24.05 Nonvested options at end of period 3,176,469 $ 23.30 |
Schedule of Restricted Stock Units Activity | A summary of RSU activity during the twelve months ended March 31, 2016 , and 2015 is as follows: Twelve Months Ended March 31, 2016 March 31, 2015 Shares Weighted Avg. Grant Date Fair Value Shares Weighted Avg. Grant Date Fair Value Nonvested RSUs at beginning of period 53,813 $ 29.06 — $ — Granted 96,952 23.20 58,883 29.08 Vested (12,866 ) 29.09 — — Canceled/Forfeited (12,592 ) 27.62 (5,070 ) 29.31 Nonvested RSUs at end of period 125,307 $ 24.67 53,813 $ 29.06 |
Schedule of Weighted-Average Assumptions Used, Performance Stock Units | The following weighted-average assumptions were used for the PSUs granted during the twelve months ended March 31, 2016 : Twelve Months Ended March 31, 2016 Expected volatility factor 31 % Weighted-average risk-free interest rate 1.01 % Expected dividend rate 0.0 % PSU fair value per share $32.06 The following table presents significant assumptions used to determine benefit obligations and net periodic benefit cost (income) in weighted-average percentages: Pension Benefits Other Postretirement Benefits March 31, 2016 March 31, 2015 March 31, 2014 March 31, 2016 March 31, 2015 March 31, 2014 Benefit Obligations: Discount rate 3.84 % 3.70 % 4.54 % 3.90 % 3.80 % 4.30 % Rate of compensation increase 3.07 % 3.40 % 3.41 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.70 % 4.54 % 4.25 % 3.80 % 4.30 % 3.80 % Rate of compensation increase 3.40 % 3.41 % 3.42 % n/a n/a n/a Expected return on plan assets 5.33 % 5.30 % 5.48 % n/a n/a n/a |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of Net Benefit Costs | The components of net periodic benefit cost reported in the consolidated statements of operations are as follows (in millions): Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Pension Benefits: Service cost $ 2.2 $ 1.4 $ 1.8 Interest cost 25.5 30.0 30.1 Expected return on plan assets (28.8 ) (29.8 ) (30.5 ) Amortization of: Prior service cost 0.1 0.2 0.2 Settlement loss (1) — 6.5 — Recognition of actuarial losses 13.0 51.7 2.7 Net periodic benefit cost $ 12.0 $ 60.0 $ 4.3 Other Postretirement Benefits: Service cost $ 0.1 $ 0.1 $ 0.1 Interest cost 1.2 1.3 1.2 Amortization: Prior service credit (2.0 ) (1.9 ) (1.9 ) Recognition of actuarial losses (gains) (0.1 ) 1.2 — Net periodic benefit cost $ (0.8 ) $ 0.7 $ (0.6 ) (1) During fiscal 2015 the Company offered approximately 4,500 inactive participants in its domestic non-union defined benefit plans with vested benefits the opportunity to receive a lump sum settlement of the value of the participant’s pension benefit. Acceptance of the offer by a participant was completely voluntary, and if accepted, participants could elect to receive the settlement in the form of a single lump sum payment or in the form of a monthly annuity beginning during fiscal 2015. The election period for this voluntary offer closed on October 15, 2014 and a total of $65.0 million was paid to electing participants during fiscal 2015. The settlement and corresponding re-measurement of the domestic non-union defined benefit plan resulted in the recognition of non-cash actuarial losses during fiscal 2015 of $6.5 million . |
Summary of the Plan's Status | The status of the plans are summarized as follows (in millions): Pension Benefits Other Postretirement Benefits Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2016 Year Ended March 31, 2015 Benefit obligation at beginning of period $ (718.8 ) $ (700.0 ) $ (32.4 ) $ (31.2 ) Service cost (2.2 ) (1.4 ) (0.1 ) (0.1 ) Interest cost (25.5 ) (30.0 ) (1.2 ) (1.3 ) Actuarial (losses) gains 35.1 (114.2 ) 0.7 (2.1 ) Benefits paid 38.8 40.8 4.0 3.2 Plan participant contributions (0.4 ) (0.4 ) (0.6 ) (0.9 ) Settlements — 65.0 — — Translation adjustment (1.0 ) 21.4 — — Benefit obligation at end of period $ (674.0 ) $ (718.8 ) $ (29.6 ) $ (32.4 ) Plan assets at the beginning of the period $ 543.2 $ 577.7 $ — $ — Actual return on plan assets (9.5 ) 65.0 — — Contributions 8.6 12.5 4.0 3.2 Benefits paid (38.8 ) (40.8 ) (4.0 ) (3.2 ) Settlements — (65.0 ) — — Translation adjustment 0.1 (6.2 ) — — Plan assets at end of period $ 503.6 $ 543.2 $ — $ — Funded status of plans $ (170.4 ) $ (175.6 ) $ (29.6 ) $ (32.4 ) Net amount on Consolidated Balance Sheets consists of: Long-term assets $ 0.5 $ — $ — $ — Current liabilities (2.4 ) (2.3 ) (2.6 ) (2.7 ) Long-term liabilities (168.5 ) (173.3 ) (27.0 ) (29.7 ) Total net funded status $ (170.4 ) $ (175.6 ) $ (29.6 ) $ (32.4 ) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized | Amounts included in accumulated other comprehensive loss (income), net of tax, related to defined benefit plans at March 31, 2016 and 2015 consist of the following (in millions): As of March 31, 2016 Pension Benefits Postretirement Benefits Total Unrecognized prior service cost (credit) $ 0.1 $ (5.1 ) $ (5.0 ) Unrecognized actuarial loss 61.9 0.6 62.5 Accumulated other comprehensive loss (income), gross 62.0 (4.5 ) 57.5 Deferred income tax (benefit) provision (23.6 ) 1.7 (21.9 ) Accumulated other comprehensive loss (income), net $ 38.4 $ (2.8 ) $ 35.6 As of March 31, 2015 Pension Benefits Postretirement Benefits Total Unrecognized prior service cost (credit) $ 0.2 $ (7.1 ) $ (6.9 ) Unrecognized actuarial loss 71.7 1.2 72.9 Accumulated other comprehensive loss (income), gross 71.9 (5.9 ) 66.0 Deferred income tax (benefit) provision (27.4 ) 2.5 (24.9 ) Accumulated other comprehensive loss (income), net $ 44.5 $ (3.4 ) $ 41.1 |
Schedule of Assumptions Used | The following weighted-average assumptions were used for the PSUs granted during the twelve months ended March 31, 2016 : Twelve Months Ended March 31, 2016 Expected volatility factor 31 % Weighted-average risk-free interest rate 1.01 % Expected dividend rate 0.0 % PSU fair value per share $32.06 The following table presents significant assumptions used to determine benefit obligations and net periodic benefit cost (income) in weighted-average percentages: Pension Benefits Other Postretirement Benefits March 31, 2016 March 31, 2015 March 31, 2014 March 31, 2016 March 31, 2015 March 31, 2014 Benefit Obligations: Discount rate 3.84 % 3.70 % 4.54 % 3.90 % 3.80 % 4.30 % Rate of compensation increase 3.07 % 3.40 % 3.41 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.70 % 4.54 % 4.25 % 3.80 % 4.30 % 3.80 % Rate of compensation increase 3.40 % 3.41 % 3.42 % n/a n/a n/a Expected return on plan assets 5.33 % 5.30 % 5.48 % n/a n/a n/a |
Schedule of Allocation of Plan Assets | The following table presents the Company’s target investment allocations for the year ended March 31, 2016 and actual investment allocations at March 31, 2016 and 2015 . Plan Assets 2016 2015 Investment Policy (1) Target Allocation (2) Actual Allocation Actual Allocation Equity securities 20 - 30% 29 % 28 % 28 % Debt securities (including cash and cash equivalents) 55 - 80% 66 % 66 % 67 % Other 0 - 10% 5 % 6 % 5 % (1) The investment policy allocation represents the guidelines of the Company's principal U.S. pension plans based on the changes in the plans funded status. (2) The target allocations represent the weighted average target allocations for the Company's principal U.S. pension plans. |
Schedule of Fair Value of Pension Plan Assets | The fair values of the Company’s pension plan assets for both the U.S and non-U.S. plans at March 31, 2016 and 2015 , by asset category are included in the table below (in millions). For additional information on the fair value hierarchy and the inputs used to measure fair value, see Note 13 Fair Value Measurements. As of March 31, 2016 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 1.7 $ 4.9 $ — $ 6.6 Investment funds Fixed income funds (1) — 328.8 — 328.8 U.S. equity funds (2) — 63.7 — 63.7 International equity funds (2) — 35.3 — 35.3 Balanced funds (2) — 9.1 — 9.1 Alternative investment funds (3) — — 37.5 37.5 Insurance contracts — — 22.6 22.6 Total $ 1.7 $ 441.8 $ 60.1 $ 503.6 As of March 31, 2015 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash and cash equivalents $ 1.8 $ 5.6 $ — $ 7.4 Investment funds Fixed income funds (1) — 355.5 — 355.5 U.S. equity funds (2) — 68.1 — 68.1 International equity funds (2) — 35.8 — 35.8 Balanced funds (2) — 10.1 — 10.1 Alternative investment funds (3) — — 42.9 42.9 Insurance contracts — — 23.4 23.4 Total $ 1.8 $ 475.1 $ 66.3 $ 543.2 (1) The Company's fixed income mutual and commingled funds primarily include investments in U.S. government securities and corporate bonds. The commingled funds also include an insignificant portion of investments in asset-backed securities or partnerships. The mutual and commingled funds are valued using quoted market prices of the underlying investments. (2) The Company's equity mutual and commingled funds primarily include investments in U.S. and international common stock. The balanced mutual and commingled funds invest in a combination of fixed income and equity securities. The mutual and commingled funds are valued using quoted market prices of the underlying securities. (3) The Company's alternative investments include venture capital and partnership investments. Alternative investments are valued using the net asset value, which reflects the plan's share of the fair value of the investments. |
Summary of Changes in Fair Value, Level 3 | The table below sets forth a summary of changes in the fair value of the Level 3 investments for the years ended March 31, 2016 and 2015 (in millions): Alternative Investments Insurance Contracts Total Beginning balance, March 31, 2014 $ 53.6 $ 16.5 $ 70.1 Actual return on assets: Related to assets held at reporting date (1.6 ) 6.9 5.3 Related to assets sold during the period 2.3 — 2.3 Purchases, sales, issuances and settlements (11.4 ) — (11.4 ) Transfers in and/or out of Level 3 — — — Ending balance, March 31, 2015 42.9 23.4 66.3 Actual return on assets: Related to assets held at reporting date (2.4 ) (0.8 ) (3.2 ) Related to assets sold during the period 1.5 — 1.5 Purchases, sales, issuances and settlements (4.5 ) — (4.5 ) Ending balance, March 31, 2016 $ 37.5 $ 22.6 $ 60.1 |
Schedule of Expected Benefit Payments | Expected benefit payments to be paid in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows (in millions): Year Ending March 31: Pension Benefits Other Postretirement Benefits 2017 $ 40.1 $ 2.6 2018 40.3 2.7 2019 40.5 2.6 2020 40.2 2.5 2021 40.2 2.4 2022-2026 200.4 9.9 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage point change in assumed health care cost trend rates would have the following effect (in millions): One Percentage Point Increase One Percentage Point Decrease Year Ended March 31, Year Ended March 31, 2016 2015 2014 2016 2015 2014 Increase (decrease) in total of service and interest cost components $ 0.1 $ 0.1 $ 0.1 $ (0.1 ) $ (0.1 ) $ (0.1 ) Increase (decrease) in postretirement benefit obligation 2.6 2.9 2.4 (2.2 ) (2.5 ) (2.1 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of the Provision (Benefit) For Income Taxes | The components of the provision (benefit) for income taxes are as follows (in millions): Year ended March 31, 2016 2015 2014 Current: United States $ 24.0 $ 17.2 $ 0.8 Non-United States 15.3 15.6 14.6 State and local 3.9 4.7 1.6 Total current 43.2 37.5 17.0 Deferred: United States (10.2 ) (8.2 ) (8.6 ) Non-United States 1.1 (10.5 ) (16.4 ) State and local (17.0 ) (2.0 ) (2.0 ) Total deferred (26.1 ) (20.7 ) (27.0 ) Provision (benefit) for income taxes $ 17.1 $ 16.8 $ (10.0 ) |
U.S. Statutory Income Tax Rate Reconciliation | The provision (benefit) for income taxes differs from the United States statutory income tax rate due to the following items (in millions): Year ended March 31, 2016 2015 2014 Provision for income taxes at U.S. federal statutory income tax rate $ 30.1 $ 37.9 $ 5.2 State and local income taxes, net of federal benefit 2.7 2.6 (1.1 ) Net effects of foreign rate differential (3.0 ) (3.3 ) (3.6 ) Net effects of foreign related operations (2.1 ) 8.9 5.7 Net effect to deferred taxes for changes in tax rates (0.8 ) 0.2 0.6 Unrecognized tax benefits, net of federal benefit (11.3 ) (0.5 ) (4.7 ) Domestic production activities deduction (1.3 ) (2.3 ) — Change in valuation allowance 2.3 (27.4 ) (11.5 ) Other 0.5 0.7 (0.6 ) Provision (benefit) for income taxes $ 17.1 $ 16.8 $ (10.0 ) |
Components of Income (Loss) Before Income Taxes | The provision (benefit) for income taxes was calculated based upon the following components of income (loss) before income taxes (in millions): Year ended March 31, 2016 2015 2014 United States $ 45.3 $ 89.9 $ (25.9 ) Non-United States 40.7 18.7 40.9 Income before income taxes $ 86.0 $ 108.6 $ 15.0 |
Schedule of Deferred Income Taxes | Deferred income taxes consist of the tax effects of the following temporary differences (in millions): March 31, 2016 March 31, 2015 Deferred tax assets: Compensation and retirement benefits $ 84.4 $ 86.9 General accruals and reserves 18.3 16.9 State tax net operating loss carryforwards 19.6 20.9 Foreign tax credit carryforwards 4.3 26.5 Foreign net operating loss carryforwards 17.7 17.1 Other 14.5 15.3 Total deferred tax assets before valuation allowance 158.8 183.6 Valuation allowance (27.2 ) (25.0 ) Total deferred tax assets 131.6 158.6 Deferred tax liabilities: Property, plant and equipment 42.8 47.8 Inventories 30.1 30.8 Intangible assets and goodwill 197.7 218.5 Cancellation of indebtedness 43.4 58.8 Total deferred tax liabilities 314.0 355.9 Net deferred tax liabilities $ 182.4 $ 197.3 Net amount on Consolidated Balance Sheet consists of: Other assets $ 3.6 $ 6.0 Deferred income taxes (186.0 ) (203.3 ) Net long-term deferred tax liabilities $ (182.4 ) $ (197.3 ) |
Reconciliation of Gross Unrecognized Tax Benefits | The following table represents a reconciliation of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, for the fiscal years ended March 31, 2016 and March 31, 2015 (in millions): Year Ended March 31, 2016 2015 Balance at beginning of period $ 21.7 $ 20.9 Additions based on tax positions related to the current year 0.8 3.2 Additions for tax positions of prior years 1.2 — Reductions for tax positions of prior years (0.1 ) — Reductions due to lapse of applicable statute of limitations (10.3 ) (1.7 ) Cumulative translation adjustment (0.1 ) (0.7 ) Balance at end of period $ 13.2 $ 21.7 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Business Segment Information: (in Millions) Year Ended March 31, 2016 March 31, 2015 March 31, 2014 Net sales by product Process & Motion Control: Original equipment manufacturers/ end-users $ 572.3 $ 642.1 $ 621.1 Maintenance, repair, and operations 528.0 588.1 617.1 Total Process & Motion Control $ 1,100.3 $ 1,230.2 $ 1,238.2 Water Management: Water safety, quality, flow control and conservation 534.1 517.1 465.6 Water infrastructure 289.4 302.9 330.5 Total Water Management 823.5 820.0 796.1 Consolidated net sales $ 1,923.8 $ 2,050.2 $ 2,034.3 Income (loss) from operations Process & Motion Control $ 146.8 $ 219.6 $ 237.7 Water Management 72.8 79.0 72.2 Corporate (45.3 ) (94.9 ) (37.5 ) Consolidated $ 174.3 $ 203.7 $ 272.4 Non-operating expense: Interest expense, net $ (91.4 ) $ (87.9 ) $ (109.1 ) Loss on the extinguishment of debt — — (133.2 ) Other income (expense), net 3.1 (7.2 ) (15.1 ) Income from continuing operations before income taxes 86.0 108.6 15.0 Provision (benefit) provision for income taxes 17.1 16.8 (10.0 ) Net income from continuing operations $ 68.9 $ 91.8 $ 25.0 (Loss) income from discontinued operations, net of tax (1.4 ) (8.0 ) 4.6 Net income 67.5 83.8 29.6 Non-controlling interest loss (0.4 ) — (0.6 ) Net income attributable to Rexnord $ 67.9 $ 83.8 $ 30.2 Depreciation and Amortization Process & Motion Control $ 77.3 $ 74.1 $ 69.7 Water Management 38.1 38.1 37.2 Consolidated $ 115.4 $ 112.2 $ 106.9 Capital Expenditures Process & Motion Control $ 43.6 $ 37.7 $ 39.4 Water Management 8.5 11.1 12.8 Consolidated $ 52.1 $ 48.8 $ 52.2 March 31, 2016 March 31, 2015 March 31, 2014 Total Assets Process & Motion Control $ 2,412.7 $ 2,419.0 $ 2,251.4 Water Management 933.2 981.9 1,038.7 Corporate 8.9 8.4 80.7 Consolidated $ 3,354.8 $ 3,409.3 $ 3,370.8 |
Summary of Net Sales and Long-Lived Assets | Net sales to third parties and long-lived assets by geographic region are as follows (in millions): Net Sales Long-lived Assets Year Ended March 31, 2016 Year Ended March 31, 2015 Year Ended March 31, 2014 March 31, 2016 March 31, 2015 March 31, 2014 United States $ 1,306.9 $ 1,380.0 $ 1,337.2 $ 276.0 $ 279.4 $ 284.6 Europe 370.8 374.0 409.1 80.5 92.1 98.6 Rest of World 246.1 296.2 288.0 40.7 46.1 40.5 $ 1,923.8 $ 2,050.2 $ 2,034.3 $ 397.2 $ 417.6 $ 423.7 |
Quarterly Results of Operatio48
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Fiscal 2016 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales $ 485.1 $ 485.9 $ 460.2 $ 492.6 $ 1,923.8 Gross profit 169.8 169.3 158.3 167.8 665.2 Net income from continuing operations 21.2 22.6 24.3 0.8 68.9 Loss from discontinued operations, net of tax — — — (1.4 ) (1.4 ) Net income (loss) 21.2 22.6 24.3 (0.6 ) 67.5 Non-controlling interest (loss) (0.1 ) — (0.1 ) (0.2 ) (0.4 ) Net income (loss) attributable to Rexnord 21.3 22.6 24.4 (0.4 ) 67.9 Net income per share from continuing operations: Basic $ 0.21 $ 0.23 $ 0.24 $ 0.01 $ 0.68 Diluted $ 0.20 $ 0.22 $ 0.24 $ 0.01 $ 0.67 (Loss) per share from discontinued operations: Basic $ — $ — $ — $ (0.01 ) $ (0.01 ) Diluted — — — $ (0.01 ) $ (0.01 ) Net income per share attributable to Rexnord: Basic $ 0.21 $ 0.23 $ 0.24 $ — $ 0.67 Diluted $ 0.20 $ 0.22 $ 0.24 $ — $ 0.66 Fiscal 2015 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales $ 503.6 $ 531.0 $ 497.1 $ 518.5 $ 2,050.2 Gross profit 178.2 197.0 181.5 189.5 746.2 Net income (loss) from continuing operations 11.6 37.8 6.7 35.7 91.8 Income (loss) from discontinued operations, net of tax 0.4 (0.7 ) (4.5 ) (3.2 ) (8.0 ) Net income (loss) 12.0 37.1 2.2 32.5 83.8 Non-controlling interest (loss) income (0.1 ) (0.1 ) — 0.2 — Net income (loss) attributable to Rexnord 12.1 37.2 2.2 32.3 83.8 Net income per share from continuing operations: Basic $ 0.11 $ 0.37 $ 0.07 $ 0.35 $ 0.90 Diluted $ 0.11 $ 0.36 $ 0.06 $ 0.34 $ 0.88 Income (loss) per share from discontinued operations: Basic $ — $ (0.01 ) $ (0.04 ) $ (0.03 ) $ (0.08 ) Diluted $ — $ (0.01 ) $ (0.04 ) $ (0.03 ) $ (0.08 ) Net income per share attributable to Rexnord: Basic $ 0.12 $ 0.37 $ 0.02 $ 0.32 $ 0.82 Diluted $ 0.12 $ 0.36 $ 0.02 $ 0.31 $ 0.80 |
Significant Accounting Polici49
Significant Accounting Policies - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Value of returned goods as percentage of net sales (or less) | 1.00% | 1.00% | 1.00% |
Post-shipment obligations | $ 0 | ||
Anti-dilutive shares excluded from computation for diluted net income (loss) per share | 2,896,640 | 1,268,623 | 1,278,316 |
Allowance for doubtful accounts | $ 8,900,000 | $ 16,800,000 | |
Largest customer percentage of consolidated net sales | 8.40% | 8.90% | 7.80% |
Percentage of LIFO inventory | 64.00% | 64.00% | |
Write-down of inventories | $ 9,500,000 | $ 5,200,000 | $ 3,800,000 |
Currency translation gains (losses) | (3,000,000) | (1,500,000) | (3,900,000) |
Advertising costs | $ 9,200,000 | 10,400,000 | $ 9,600,000 |
Minimum | Customer Relationships | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and intangible assets useful life | 3 years | ||
Minimum | Patents | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and intangible assets useful life | 3 years | ||
Minimum | Trade-Names | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and intangible assets useful life | 3 years | ||
Minimum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 10 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 5 years | ||
Minimum | Hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 3 years | ||
Maximum | Customer Relationships | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and intangible assets useful life | 20 years | ||
Maximum | Patents | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and intangible assets useful life | 15 years | ||
Maximum | Trade-Names | |||
Property, Plant and Equipment [Line Items] | |||
Goodwill and intangible assets useful life | 10 years | ||
Maximum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 30 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 10 years | ||
Maximum | Hardware and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment useful life | 5 years | ||
Process & Motion Control | |||
Property, Plant and Equipment [Line Items] | |||
Largest customer accounts receivable balance | $ 8,100,000 | 10,200,000 | |
Accounting Standards Update 2015-03 | Other Noncurrent Assets | |||
Property, Plant and Equipment [Line Items] | |||
Deferred finance costs, net | 10,500,000 | ||
Accounting Standards Update 2015-03 | Long-term Debt, Excluding Current Maturities | |||
Property, Plant and Equipment [Line Items] | |||
Deferred finance costs, net | $ (10,500,000) |
Significant Accounting Polici50
Significant Accounting Policies - Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 6.8 | $ 8 | $ 7.7 |
Acquired obligations | 0 | 0 | 0.2 |
Charged to operations | 2.8 | 1.8 | 3.9 |
Claims settled | (2.8) | (3) | (3.8) |
Balance at end of period | $ 6.8 | $ 6.8 | $ 8 |
Significant Accounting Polici51
Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 552.7 | $ 562.1 | $ 428.5 |
Ending balance | 588 | 552.7 | 562.1 |
Interest Rate Derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (12.6) | (1.7) | 0 |
Other comprehensive (loss) income before reclassifications | (4.3) | (10.9) | (1.7) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | (4.3) | (10.9) | (1.7) |
Ending balance | (16.9) | (12.6) | (1.7) |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (76.5) | 7.8 | 0.7 |
Other comprehensive (loss) income before reclassifications | (10) | (84.3) | 7.1 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Net current period other comprehensive (loss) income | (10) | (84.3) | 7.1 |
Ending balance | (86.5) | (76.5) | 7.8 |
Pension and Postretirement Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (41.1) | (29.9) | (39.4) |
Other comprehensive (loss) income before reclassifications | 6.7 | (14.1) | 10.5 |
Amounts reclassified from accumulated other comprehensive loss | (1.2) | 2.9 | (1) |
Net current period other comprehensive (loss) income | 5.5 | (11.2) | 9.5 |
Ending balance | (35.6) | (41.1) | (29.9) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (130.2) | (23.8) | (38.7) |
Other comprehensive (loss) income before reclassifications | (7.6) | (109.3) | 15.9 |
Amounts reclassified from accumulated other comprehensive loss | (1.2) | 2.9 | (1) |
Net current period other comprehensive (loss) income | (8.8) | (106.4) | 14.9 |
Ending balance | $ (139) | $ (130.2) | $ (23.8) |
Significant Accounting Polici52
Significant Accounting Policies Accumulated Other Comprehensive Income (Loss) Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Selling, general and administrative expenses | $ (385.7) | $ (415.1) | $ (419.1) | ||||||||
Actuarial loss on pension and postretirement benefit obligations | 12.9 | 59.4 | 2.7 | ||||||||
Provision (benefit) for income taxes | 17.1 | 16.8 | (10) | ||||||||
Total, net of income taxes | $ (0.6) | $ 24.3 | $ 22.6 | $ 21.2 | $ 32.5 | $ 2.2 | $ 37.1 | $ 12 | 67.5 | 83.8 | 29.6 |
Pension and Postretirement Plans | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Provision (benefit) for income taxes | 0.7 | (1.9) | 0.7 | ||||||||
Total, net of income taxes | (1.2) | 2.9 | (1) | ||||||||
Pension and Postretirement Plans | Amortization of prior service credit | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Selling, general and administrative expenses | (1.9) | (1.7) | (1.7) | ||||||||
Pension and Postretirement Plans | Lump Sum Settlement | |||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||
Actuarial loss on pension and postretirement benefit obligations | $ 0 | $ 6.5 | $ 0 |
Significant Accounting Polici53
Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Accounting Policies [Abstract] | |||
Research and development costs | $ 12.4 | $ 12.8 | $ 13 |
Engineering costs | 24.8 | 26 | 28.4 |
Total | $ 37.2 | $ 38.8 | $ 41.4 |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | Jan. 12, 2015USD ($) | Oct. 30, 2014USD ($) | Apr. 15, 2014USD ($) | Dec. 16, 2013USD ($)subsidiary | Aug. 30, 2013USD ($) | Aug. 21, 2013USD ($) | Apr. 26, 2013USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($)employeeRate |
Business Acquisition [Line Items] | ||||||||||
Purchase price, net of cash acquired | $ (1.1) | $ 138.2 | $ 112 | |||||||
Purchase price adjustments - increase (decrease) in goodwill | (4.8) | 1.8 | ||||||||
Acquisition - goodwill | 1,193.8 | 1,202.3 | $ 1,150.7 | |||||||
Non-controlling interest percentage | Rate | 49.00% | |||||||||
Euroflex Transmissions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total cash purchase price | $ 76 | |||||||||
Tollok S.p.A. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum purchase price, net of cash acquired | $ 39.2 | |||||||||
Purchase price, net of cash acquired | 33.4 | |||||||||
Contingent consideration, not to exceed | $ 3.8 | |||||||||
Business combination, contingent consideration arrangements, period of time in which financial performance threshold will be monitored | 2 years | |||||||||
Payments to acquire business, two future, equal annual installments | $ 3.4 | |||||||||
Green Turtle | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total cash purchase price | $ 27.7 | |||||||||
Acquisitions 2,015 | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price adjustments - increase (decrease) in goodwill | (4.8) | |||||||||
Acquisition - goodwill | 69.9 | |||||||||
Acquisition - other intangible assets | 71.4 | |||||||||
Acquisition - other net assets | $ 1.6 | |||||||||
Precision Gear Holdings | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total cash purchase price | $ 77.1 | |||||||||
Number of operating subsidiaries | subsidiary | 2 | |||||||||
L.W. Gemmell | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total cash purchase price | $ 8.2 | |||||||||
Micro Precision | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total cash purchase price | $ 22.2 | |||||||||
Klamflex | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Total cash purchase price | $ 4.5 | |||||||||
2014 Acquisitions | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Purchase price adjustments - increase (decrease) in goodwill | 1.8 | |||||||||
Acquisition - goodwill | 26.7 | |||||||||
Acquisition - other intangible assets | 23.3 | |||||||||
Acquisition - other net assets | 25.3 | |||||||||
Purchase price adjustments - increase (decrease) in intangibles | (1.8) | |||||||||
Acquisition - goodwill, tax deductible amount | 24.6 | |||||||||
Acquisition, property - plant and equipment | $ 36.7 | |||||||||
Water Management | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Non-controlling interest, percentage owned by parent | Rate | 51.00% | |||||||||
Non-controlling interest percentage | Rate | 49.00% | |||||||||
Co-venturer | Water Management | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Entity number of employees | employee | 6 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2015USD ($) | |
Business Divestiture [Line Items] | |
Long-lived assets | $ 2.6 |
Mill Products business | |
Business Divestiture [Line Items] | |
Discontinued operations, proceeds from sale | 9.2 |
Provision for loss (gain) on disposal | 9.7 |
Impairment of property, plant and equipment | 3.8 |
Impairment of goodwill | 4.1 |
Other exit related costs | $ 1.8 |
Discontinued Operations - Resul
Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Net (loss) income per share from discontinued operations: | |||||||||||
Basic (in dollars per share) | $ (0.01) | $ 0 | $ 0 | $ 0 | $ (0.03) | $ (0.04) | $ (0.01) | $ 0 | $ (0.01) | $ (0.08) | $ 0.05 |
Diluted (in dollars per share) | $ (0.01) | $ 0 | $ 0 | $ 0 | $ (0.03) | $ (0.04) | $ (0.01) | $ 0 | $ (0.01) | $ (0.08) | $ 0.05 |
Mill Products business | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Net sales | $ 0 | $ 34.1 | $ 47.7 | ||||||||
(Loss) income from operations before income taxes | (2.2) | (10.9) | 7.2 | ||||||||
(Benefit) provision for income taxes | (0.8) | (2.9) | 2.6 | ||||||||
Net (loss) income | $ (1.4) | $ (8) | $ 4.6 | ||||||||
Net (loss) income per share from discontinued operations: | |||||||||||
Basic (in dollars per share) | $ (0.01) | $ (0.08) | $ 0.05 | ||||||||
Diluted (in dollars per share) | $ (0.01) | $ (0.08) | $ 0.05 |
Restructuring and Other Simil57
Restructuring and Other Similar Charges - By Operating Segment (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | $ 34.9 | $ 12.9 | $ 8.4 | $ 56.2 |
Customer Relationships | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 0.3 | |||
Patents | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 0.2 | |||
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 15.3 | 10.9 | 6.1 | 32.3 |
Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 17.5 | 17.5 | ||
Lease termination and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 2.1 | 2 | 2.3 | 6.4 |
Fixed assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 6.6 | |||
Intangible assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 10.9 | |||
Process & Motion Control | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 12.3 | 8.8 | 4.9 | 26 |
Process & Motion Control | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 10.8 | 7.6 | 3.3 | 21.7 |
Process & Motion Control | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 1 | 1 | ||
Process & Motion Control | Lease termination and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 0.5 | 1.2 | 1.6 | 3.3 |
Water Management | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 22.3 | 4.1 | 2.7 | 29.1 |
Water Management | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 4.2 | 3.3 | 2 | 9.5 |
Water Management | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 16.5 | 16.5 | ||
Water Management | Lease termination and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 1.6 | 0.8 | 0.7 | 3.1 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 0.3 | 0 | 0.8 | 1.1 |
Corporate | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 0.3 | 0 | 0.8 | 1.1 |
Corporate | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 0 | 0 | ||
Corporate | Lease termination and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 0 | $ 0 | $ 0 | $ 0 |
Tradenames | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | $ 10.4 |
Restructuring and Other Simil58
Restructuring and Other Similar Charges - Pre-tax Loss From Operations Associated with the Non-strategic Exit of the RHF Product-line (Details) - USD ($) $ in Millions | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax loss | $ 86 | $ 108.6 | $ 15 | |
Restructuring and other similar costs | 34.9 | 12.9 | 8.4 | $ 56.2 |
Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 17.5 | 17.5 | ||
Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 15.3 | 10.9 | 6.1 | 32.3 |
RHF Product Line | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax loss | (43.1) | (14) | (10.1) | |
RHF Product Line | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 16.5 | |||
RHF Product Line | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs | 2.9 | 2.2 | 0.3 | |
Water Management | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 22.3 | 4.1 | 2.7 | 29.1 |
Water Management | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | 16.5 | 16.5 | ||
Water Management | Severance costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other similar costs | $ 4.2 | $ 3.3 | $ 2 | $ 9.5 |
Restructuring and Other Simil59
Restructuring and Other Similar Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Restructuring Reserve [Roll Forward] | |||
Accrued Restructuring Costs, Beginning of Period | $ 7 | $ 3.8 | |
Charges | 34.9 | 12.9 | $ 8.4 |
Cash payments | (13.6) | (8.9) | |
Non-cash charges | (17.5) | (0.8) | |
Accrued Restructuring Costs, End of Period | 10.8 | 7 | 3.8 |
Severance Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accrued Restructuring Costs, Beginning of Period | 6.7 | 3.4 | |
Charges | 15.3 | 10.9 | |
Cash payments | (11.5) | (7.6) | |
Non-cash charges | 0 | 0 | |
Accrued Restructuring Costs, End of Period | 10.5 | 6.7 | 3.4 |
Asset impairment charges | |||
Restructuring Reserve [Roll Forward] | |||
Accrued Restructuring Costs, Beginning of Period | 0 | 0 | |
Charges | 17.5 | 0 | |
Cash payments | 0 | 0 | |
Non-cash charges | (17.5) | 0 | |
Accrued Restructuring Costs, End of Period | 0 | 0 | 0 |
Lease Termination and Other Costs | |||
Restructuring Reserve [Roll Forward] | |||
Accrued Restructuring Costs, Beginning of Period | 0.3 | 0.4 | |
Charges | 2.1 | 2 | |
Cash payments | (2.1) | (1.3) | |
Non-cash charges | 0 | (0.8) | |
Accrued Restructuring Costs, End of Period | $ 0.3 | $ 0.3 | $ 0.4 |
Recovery Under Continued Dump60
Recovery Under Continued Dumping and Subsidy Offset Act ("CDSOA") (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Component of Other Income, Nonoperating [Line Items] | |||
Income distributed from CBP | $ 3,100,000 | $ (7,200,000) | $ (15,100,000) |
Recovery under CDSOA | |||
Component of Other Income, Nonoperating [Line Items] | |||
Income distributed from CBP | $ 8,400,000 | $ 0 | $ 0 |
Inventories - By Category (Deta
Inventories - By Category (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 148.4 | $ 168.5 |
Work in progress | 55.3 | 70.7 |
Purchased components | 67.6 | 69.9 |
Raw materials | 49.3 | 52.8 |
Inventories at First-in, First-Out (FIFO) cost | 320.6 | 361.9 |
Adjustment to state inventories at Last-in, First-Out (LIFO) cost | 6.6 | 5.8 |
Inventories, net | $ 327.2 | $ 367.7 |
Property, Plant and Equipment62
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 746 | $ 726.8 |
Less accumulated depreciation | (348.8) | (309.2) |
Property, plant and equipment, net | 397.2 | 417.6 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 31.2 | 33.5 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 210.8 | 217.7 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 401 | 388.2 |
Hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 65.4 | 61.5 |
Construction in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 37.6 | $ 25.9 |
Goodwill and Intangible Asset63
Goodwill and Intangible Assets - Schedule of Changes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Goodwill [Roll Forward] | |||
Net carrying amount, beginning of period | $ 1,202.3 | $ 1,150.7 | |
Acquisitions | 74.7 | ||
Purchase price allocation adjustments | (4.8) | 1.8 | |
Amortization | 0 | 0 | |
Currency translation adjustment and other | (3.7) | (24.9) | |
Net carrying amount, end of period | 1,193.8 | 1,202.3 | $ 1,150.7 |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 328.1 | 338.4 | |
Acquisitions | 0 | ||
Purchase price allocation adjustments | 0 | (3.1) | |
Amortization | 0 | 0 | |
Currency translation adjustment and other | (12.4) | (7.2) | |
Net carrying amount, end of period | 315.7 | 328.1 | 338.4 |
Finite-lived Intangible Assets [Roll Forward] | |||
Amortization | (57.4) | (55.1) | (50.8) |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Net carrying amount, beginning of period | 587.7 | 592.6 | |
Acquisitions | 67.2 | ||
Purchase price allocation adjustments | 4.2 | (1.8) | |
Amortization | (57.4) | (55.1) | (50.8) |
Currency translation adjustment and other | (13.6) | (15.2) | |
Net carrying amount, end of period | 520.9 | 587.7 | 592.6 |
Mill Products business | |||
Goodwill [Roll Forward] | |||
Net carrying amount, end of period | 4.1 | ||
Tradenames | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 8.7 | 1.9 | |
Acquisitions | 6.8 | ||
Purchase price allocation adjustments | 4.2 | 1.3 | |
Amortization | (2) | (1.2) | |
Currency translation adjustment and other | (1.2) | (0.1) | |
Net carrying amount, end of period | 9.7 | 8.7 | 1.9 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (2) | (1.2) | |
Customer Relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 242.1 | 241.4 | |
Acquisitions | 58.9 | ||
Purchase price allocation adjustments | 0 | 0 | |
Amortization | (52.1) | (50.4) | |
Currency translation adjustment and other | (1.2) | (7.8) | |
Net carrying amount, end of period | 188.8 | 242.1 | 241.4 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (52.1) | (50.4) | |
Impairment of intangible assets | 0.3 | ||
Patents | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 8.8 | 10.9 | |
Acquisitions | 1.5 | ||
Purchase price allocation adjustments | 0 | 0 | |
Amortization | (3.3) | (3.5) | |
Currency translation adjustment and other | 1.2 | (0.1) | |
Net carrying amount, end of period | 6.7 | 8.8 | 10.9 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (3.3) | (3.5) | |
Impairment of intangible assets | 0.2 | ||
Process & Motion Control | |||
Goodwill [Roll Forward] | |||
Net carrying amount, beginning of period | 949.9 | 904 | |
Acquisitions | 54.7 | ||
Purchase price allocation adjustments | (4.8) | 1.8 | |
Amortization | 0 | 0 | |
Currency translation adjustment and other | (2.7) | (10.6) | |
Net carrying amount, end of period | 942.4 | 949.9 | 904 |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 192.9 | 197.6 | |
Acquisitions | 0 | ||
Purchase price allocation adjustments | 0 | (3.1) | |
Amortization | 0 | 0 | |
Currency translation adjustment and other | (2.2) | (1.6) | |
Net carrying amount, end of period | 190.7 | 192.9 | 197.6 |
Finite-lived Intangible Assets [Roll Forward] | |||
Amortization | (35.8) | (33.2) | |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Net carrying amount, beginning of period | 315.7 | 297.6 | |
Acquisitions | 56.8 | ||
Purchase price allocation adjustments | 4.2 | (1.8) | |
Amortization | (35.8) | (33.2) | |
Currency translation adjustment and other | (3.4) | (3.7) | |
Net carrying amount, end of period | 280.7 | 315.7 | 297.6 |
Process & Motion Control | Tradenames | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 7.3 | 1.9 | |
Acquisitions | 5.2 | ||
Purchase price allocation adjustments | 4.2 | 1.3 | |
Amortization | (1.7) | (1) | |
Currency translation adjustment and other | (0.7) | (0.1) | |
Net carrying amount, end of period | 9.1 | 7.3 | 1.9 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (1.7) | (1) | |
Process & Motion Control | Customer Relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 113 | 94.4 | |
Acquisitions | 51.6 | ||
Purchase price allocation adjustments | 0 | 0 | |
Amortization | (32.9) | (31) | |
Currency translation adjustment and other | (1.1) | (2) | |
Net carrying amount, end of period | 79 | 113 | 94.4 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (32.9) | (31) | |
Process & Motion Control | Patents | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 2.5 | 3.7 | |
Acquisitions | 0 | ||
Purchase price allocation adjustments | 0 | 0 | |
Amortization | (1.2) | (1.2) | |
Currency translation adjustment and other | 0.6 | 0 | |
Net carrying amount, end of period | 1.9 | 2.5 | 3.7 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (1.2) | (1.2) | |
Water Management | |||
Goodwill [Roll Forward] | |||
Net carrying amount, beginning of period | 252.4 | 246.7 | |
Acquisitions | 20 | ||
Amortization | 0 | 0 | |
Currency translation adjustment and other | (1) | (14.3) | |
Net carrying amount, end of period | 251.4 | 252.4 | 246.7 |
Indefinite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 135.2 | 140.8 | |
Acquisitions | 0 | ||
Amortization | 0 | 0 | |
Currency translation adjustment and other | (10.2) | (5.6) | |
Net carrying amount, end of period | 125 | 135.2 | 140.8 |
Finite-lived Intangible Assets [Roll Forward] | |||
Amortization | (21.6) | (21.9) | |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Net carrying amount, beginning of period | 272 | 295 | |
Acquisitions | 10.4 | ||
Amortization | (21.6) | (21.9) | |
Currency translation adjustment and other | (10.2) | (11.5) | |
Net carrying amount, end of period | 240.2 | 272 | 295 |
Water Management | Tradenames | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 1.4 | 0 | |
Acquisitions | 1.6 | ||
Amortization | (0.3) | (0.2) | |
Currency translation adjustment and other | (0.5) | 0 | |
Net carrying amount, end of period | 0.6 | 1.4 | 0 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (0.3) | (0.2) | |
Water Management | Customer Relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 129.1 | 147 | |
Acquisitions | 7.3 | ||
Amortization | (19.2) | (19.4) | |
Currency translation adjustment and other | (0.1) | (5.8) | |
Net carrying amount, end of period | 109.8 | 129.1 | 147 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (19.2) | (19.4) | |
Water Management | Patents | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Net carrying amount, beginning of period | 6.3 | 7.2 | |
Acquisitions | 1.5 | ||
Amortization | (2.1) | (2.3) | |
Currency translation adjustment and other | 0.6 | (0.1) | |
Net carrying amount, end of period | 4.8 | 6.3 | $ 7.2 |
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Amortization | (2.1) | $ (2.3) | |
Tradenames | |||
Intangibles (Excluding Goodwill) [Roll Forward] | |||
Impairment of intangible assets | $ 10.4 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Intangible Asset Schedule (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Abstract] | |||
Accumulated Amortization | $ (477.2) | $ (425.9) | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | |||
Intangible assets not subject to amortization - trademarks and tradenames | 315.7 | 328.1 | $ 338.4 |
Gross carrying amount | 998.1 | 1,013.6 | |
Net carrying amount | $ 520.9 | $ 587.7 | $ 592.6 |
Patents | |||
Finite-Lived Intangible Assets [Abstract] | |||
Weighted Average Useful Life | 10 years | 10 years | |
Gross Carrying Amount | $ 41.3 | $ 40.1 | |
Accumulated Amortization | (34.6) | (31.3) | |
Net Carrying Amount | $ 6.7 | $ 8.8 | |
Customer relationships (including distribution network) | |||
Finite-Lived Intangible Assets [Abstract] | |||
Weighted Average Useful Life | 13 years | 13 years | |
Gross Carrying Amount | $ 628.4 | $ 635.4 | |
Accumulated Amortization | (439.6) | (393.3) | |
Net Carrying Amount | $ 188.8 | $ 242.1 | |
Tradenames | |||
Finite-Lived Intangible Assets [Abstract] | |||
Weighted Average Useful Life | 8 years | 8 years | |
Gross Carrying Amount | $ 12.7 | $ 10 | |
Accumulated Amortization | (3) | (1.3) | |
Net Carrying Amount | 9.7 | 8.7 | |
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | |||
Intangible assets not subject to amortization - trademarks and tradenames | $ 315.7 | $ 328.1 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 57,400,000 | $ 55,100,000 | $ 50,800,000 | |
Future amortization expense | ||||
Expected amortization expense, 2017 | 37,800,000 | |||
Expected amortization expense, 2018 | 27,000,000 | |||
Expected amortization expense, 2019 | 26,700,000 | |||
Expected amortization expense, 2020 | 26,500,000 | |||
Expected amortization expense, 2021 | 25,100,000 | |||
Goodwill and intangible asset impairment | $ 0 | |||
Cumulative goodwill impairment charges | 323,400,000 | 323,400,000 | ||
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 3,300,000 | $ 3,500,000 | ||
Weighted-average useful life of intangible assets acquired | 3 years | |||
Tradenames | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 2,000,000 | $ 1,200,000 | ||
Weighted-average useful life of intangible assets acquired | 9 years | |||
Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 52,100,000 | $ 50,400,000 | ||
Weighted-average useful life of intangible assets acquired | 17 years |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 124.4 | $ 115.7 |
Customer advances | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 8.3 | 7 |
Sales rebates | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 28.2 | 25.4 |
Commissions | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 7.9 | 3.9 |
Restructuring and other similar charges | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 10.8 | 7 |
Product warranty | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 6.8 | 6.8 |
Risk management | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 9.9 | 9.4 |
Legal and environmental | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 4.6 | 3.8 |
Taxes, other than income taxes | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 6.6 | 8 |
Income taxes payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 15 | 19.2 |
Interest payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 5.6 | 5.5 |
Other | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 20.7 | $ 19.7 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term debt, net of unamortized original discount | $ 1,920.1 | $ 1,940 |
Less current maturities | 20.2 | 24.3 |
Long-term debt | 1,899.9 | 1,915.7 |
Credit Facility | Term loans | ||
Debt Instrument [Line Items] | ||
Long-term debt, net of unamortized original discount | 1,881 | 1,895.8 |
Unamortized original issue discount | 20.2 | 25 |
Senior Notes | 8.875% Senior notes due 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt, net of unamortized original discount | 0 | 1.3 |
Other | Other | ||
Debt Instrument [Line Items] | ||
Long-term debt, net of unamortized original discount | 39.1 | 42.9 |
Unamortized original issue discount | $ 0.6 | $ 0.6 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Jun. 29, 2013USD ($) | Mar. 31, 2016USD ($)Rate | Mar. 31, 2015USD ($)Rate | Mar. 31, 2014USD ($) | Mar. 31, 2013USD ($)plantRate | Mar. 31, 2012USD ($)plant | |
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 1,940,900,000 | |||||
Maximum borrowing capacity | 100,000,000 | |||||
Loss on extinguishment of debt | 0 | $ 0 | $ 133,200,000 | |||
Outstanding principal | $ 1,920,100,000 | 1,940,000,000 | ||||
Line of credit facility, unused capacity, daily aggregate commitment threshold of outstanding principal (less than) | 50.00% | |||||
Interest paid | $ 87,700,000 | 84,100,000 | 151,100,000 | |||
Term loans | Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 2,215,000,000 | |||||
Unamortized original issue discount | 20,200,000 | 25,000,000 | ||||
Outstanding principal | $ 1,881,000,000 | $ 1,895,800,000 | ||||
Term loans | Credit Facility | Senior Secured Leverage Ratio (Numerator) | ||||||
Debt Instrument [Line Items] | ||||||
Covenant terms, positive ratio | 7.75 | |||||
Term loans | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 1,881,000,000 | |||||
Maximum borrowing capacity | 1,950,000,000 | |||||
LIBOR floor | Rate | 1.00% | 1.00% | ||||
Step-down covenant terms, positive ratio (less than) | 3.25 | 3.25 | ||||
Principal payments prior to maturity | $ 82,900,000 | |||||
Periodic payment, principal | $ 4,900,000 | |||||
Term loans | Term Loan Facility | Eurocurrency Borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | Rate | 3.00% | 3.00% | ||||
Term loans | Term Loan Facility | ABR Borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | Rate | 2.00% | 2.00% | ||||
Interest rate based on Federal Funds effective rate | Rate | 0.50% | 0.50% | ||||
Interest rate based on LIBOR | Rate | 1.00% | 1.00% | ||||
Term loans | Term Loan Facility | April 2013 Incremental Assumption Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 150,000,000 | |||||
Loss on extinguishment of debt | 4,000,000 | |||||
Retirement of debt, premium | 800,000 | |||||
Write-off of deferred costs | $ 3,200,000 | |||||
Term loans | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 0 | $ 0 | ||||
Maximum borrowing capacity | 265,000,000 | |||||
Average interest rate | Rate | 4.00% | 4.00% | ||||
Effective interest rate | 4.00% | 4.00% | ||||
Step-up interest rate | Rate | 0.25% | |||||
Unused capacity, commitment fee percentage | Rate | 0.50% | |||||
Outstanding letters of credit | $ 21,100,000 | $ 24,000,000 | ||||
Term loans | Revolving Credit Facility | Eurocurrency Borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Step-down covenant terms, positive ratio (less than) | 1.5 | |||||
Step-down interest rate | 4.00% | |||||
Covenant terms, company's ratio | 3.91 | |||||
Term loans | Revolving Credit Facility | ABR Borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Step-down interest rate | 3.00% | |||||
8.5% Senior Notes, due 2018 | Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 786,200,000 | |||||
Loss on extinguishment of debt | 129,200,000 | |||||
Retirement of debt, premium | 109,900,000 | |||||
Third party transaction costs | 5,300,000 | |||||
Write-off of deferred costs | $ 14,000,000 | |||||
8.5% Senior Notes, due 2018 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | 8.50% | |||||
8.875% Senior notes due 2016 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate | Rate | 8.875% | |||||
Outstanding principal | $ 0 | $ 1,300,000 | ||||
New Market Tax Credit- Phase 2 | Other | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings of long-term debt | $ 4,300,000 | |||||
New Market Tax Credit- Phase 1 | Other | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from borrowings of long-term debt | $ 5,500,000 | |||||
New Market Tax Credit | Other | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | 37,400,000 | |||||
Outstanding principal | 36,800,000 | 36,800,000 | ||||
Payments to acquire loans receivable | $ 27,600,000 | |||||
Loan receivable, terms | 30 years | |||||
Loan receivable, stated percentage | Rate | 2.00% | |||||
Forgiveness of debt, possible non-operating gain | $ 9,800,000 | |||||
Loans receivables | 27,600,000 | 27,600,000 | $ 27,600,000 | |||
Other | Other | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized original issue discount | 600,000 | 600,000 | ||||
Outstanding principal | 39,100,000 | $ 42,900,000 | ||||
Accounts Receivable Securitization Program | Other | ||||||
Debt Instrument [Line Items] | ||||||
Remaining borrowing capacity | $ 100,000,000 | |||||
North America | Manufacturing Facility | ||||||
Debt Instrument [Line Items] | ||||||
Number of plants | plant | 2 | 2 | ||||
London Interbank Offered Rate (LIBOR) | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.50% | |||||
Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Unused capacity, commitment fee percentage | 0.375% |
Long-Term Debt - Future Debt Ma
Long-Term Debt - Future Debt Maturities (Details) $ in Millions | Mar. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
Unamortized original issue discount and debt issuance costs | $ 20.8 |
Maturities of Long-term Debt [Abstract] | |
2,017 | 20.2 |
2,018 | 19.9 |
2,019 | 19.9 |
2,020 | 19.7 |
2,021 | 1,823.4 |
Thereafter | 37.8 |
Long-term debt, gross | $ 1,940.9 |
Derivative Financial Instrume70
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Designated as hedging instruments | Interest rate swaps | Other liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 21.8 | $ 17.7 |
Designated as hedging instruments | Interest rate caps | Other assets | ||
Derivative [Line Items] | ||
Asset Derivatives | 0.3 | 3 |
Not designated as hedging instrument | Foreign currency forward contracts | Other current liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | 0.9 | 0 |
Not designated as hedging instrument | Foreign currency forward contracts | Other current assets | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 0 | $ 0.4 |
Derivative Financial Instrume71
Derivative Financial Instruments - Amount of Losses and Gains on Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Foreign currency forward contracts | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount recognized in other income (expense), net | $ 0 | $ 0.5 | $ 0.4 |
Designated as hedging instruments | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cumulative loss recognized, net of tax, in accumulated other comprehensive loss on derivatives | 13.5 | 11 | |
Designated as hedging instruments | Interest rate caps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cumulative loss recognized, net of tax, in accumulated other comprehensive loss on derivatives | $ 3.4 | $ 1.7 |
Derivative Financial Instrume72
Derivative Financial Instruments - Narrative (Details) | Mar. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($)derivative | Mar. 31, 2014USD ($)derivative |
Derivatives, Fair Value [Line Items] | ||||
Effectiveness of hedge | 74.00% | |||
Derivative, net hedge ineffectiveness gain (loss) | $ 0 | |||
Amount reclassified from accumulated other comprehensive loss into earnings | $ 5,200,000 | |||
Estimated reclassification of accumulated other comprehensive gain (loss) | $ (10,900,000) | |||
Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate derivatives held | derivative | 3 | |||
Derivative, notional amount | $ 650,000,000 | |||
Weighted average fixed interest rate | 2.55% | |||
Interest rate swaps | London Interbank Offered Rate (LIBOR) | ||||
Derivatives, Fair Value [Line Items] | ||||
LIBOR floor | 1.00% | |||
Interest rate caps | ||||
Derivatives, Fair Value [Line Items] | ||||
Number of interest rate derivatives held | derivative | 2 | |||
Derivative liability, notional amount | $ 750,000,000 | |||
Derivative, cap interest rate | 3.00% | |||
Derivative premium | $ 5,800,000 | |||
Applicable margin | 3.00% | |||
Maximum | Interest rate caps | ||||
Derivatives, Fair Value [Line Items] | ||||
Weighted average interest rate, maximum | 2.79% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Recognized at Fair Value on a Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Assets: | ||
Total assets at fair value | $ 0.3 | $ 3.4 |
Liabilities: | ||
Total liabilities at fair value | 22.7 | 17.7 |
Level 1 | ||
Assets: | ||
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Level 2 | ||
Assets: | ||
Total assets at fair value | 0.3 | 3.4 |
Liabilities: | ||
Total liabilities at fair value | 22.7 | 17.7 |
Level 3 | ||
Assets: | ||
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Interest rate caps | ||
Assets: | ||
Assets | 0.3 | 3 |
Interest rate caps | Level 1 | ||
Assets: | ||
Assets | 0 | 0 |
Interest rate caps | Level 2 | ||
Assets: | ||
Assets | 0.3 | 3 |
Interest rate caps | Level 3 | ||
Assets: | ||
Assets | 0 | 0 |
Foreign currency forward contracts | ||
Assets: | ||
Assets | 0.4 | |
Liabilities: | ||
Foreign currency contracts, liability, fair value disclosure | 0.9 | |
Foreign currency forward contracts | Level 1 | ||
Assets: | ||
Assets | 0 | |
Liabilities: | ||
Foreign currency contracts, liability, fair value disclosure | 0 | |
Foreign currency forward contracts | Level 2 | ||
Assets: | ||
Assets | 0.4 | |
Liabilities: | ||
Foreign currency contracts, liability, fair value disclosure | 0.9 | |
Foreign currency forward contracts | Level 3 | ||
Assets: | ||
Assets | 0 | |
Liabilities: | ||
Foreign currency contracts, liability, fair value disclosure | 0 | |
Interest rate swaps | ||
Liabilities: | ||
Liabilities | 21.8 | 17.7 |
Interest rate swaps | Level 1 | ||
Liabilities: | ||
Liabilities | 0 | 0 |
Interest rate swaps | Level 2 | ||
Liabilities: | ||
Liabilities | 21.8 | 17.7 |
Interest rate swaps | Level 3 | ||
Liabilities: | ||
Liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Fair value of long-term debt | $ 1,913,200 | $ 1,970,600 | $ 1,913,200 | |
Restructuring and related cost, incurred cost | 34,900 | 12,900 | $ 8,400 | 56,200 |
Property, plant and equipment, net | 397,200 | 417,600 | 397,200 | |
Facility Closing | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Restructuring and related cost, incurred cost | 6,600 | |||
Property, plant and equipment, net | 5,300 | 5,300 | ||
Mill Products business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Impairment of long-lived assets | 3,800 | |||
Mill Products business | Other current assets | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Long-lived assets held for sale | $ 0 | $ 2,600 | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Leases [Abstract] | |||
Rent expense | $ 18.2 | $ 19.4 | $ 17 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,017 | 14.8 | ||
2,018 | 14.6 | ||
2,019 | 12.3 | ||
2,020 | 10.8 | ||
2,021 | 8.2 | ||
Thereafter | 22.7 | ||
Future minimum rental payments | $ 83.4 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Options Granted (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected option term (in years) | 6 years 6 months | 7 years 1 month 6 days | 7 years 6 months |
Expected volatility factor | 24.00% | 26.00% | 35.00% |
Weighted-average risk free interest rate | 1.82% | 2.10% | 1.57% |
Expected dividend rate | $ 0 | $ 0 | $ 0 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Outstanding at beginning of period (shares) | 8,588,518 | 8,652,834 | 9,450,197 | |
Granted (shares) | 1,072,556 | 1,268,124 | 978,849 | |
Exercised (shares) | (1,278,017) | (743,807) | (1,154,011) | |
Cancelled/Forfeited (shares) | (528,372) | (588,633) | (622,201) | |
Outstanding at end of period (shares) | 7,854,685 | 8,588,518 | 8,652,834 | |
Exercisable at end of period (shares) | 4,678,216 | 4,798,457 | 5,225,236 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||
Outstanding at beginning of period (in dollars per share) | $ 13.04 | $ 10.79 | $ 9.85 | |
Granted (in dollars per share) | $ 24.14 | 28.30 | 19.82 | |
Exercised (in dollars per share) | 5.55 | 5.85 | 5.91 | |
Canceled/Forfeited (in dollars per share) | 23.53 | 21.65 | 19.91 | |
Outstanding at end of period (in dollars per share) | 15.10 | 13.06 | 10.79 | |
Exercisable at end of period (in dollars per share) | $ 9.52 | $ 5.67 | $ 5.46 | |
Total intrinsic value of options exercised | $ 16.3 | $ 16.7 | $ 18.7 | |
Weighted average remaining contractual life of options outstanding | 5 years | 5 years | 5 years 6 months | |
Aggregate intrinsic value of options outstanding | $ 54.8 | |||
Weighted average remaining contractual life of options exercisable | 3 years | 2 years 7 months | 3 years 8 months | |
Aggregate intrinsic value of options exercisable | $ 52.6 |
Stock-Based Compensation - Non-
Stock-Based Compensation - Non-Vested Options (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Shares | |||
Non-vested options beginning of period (shares) | 3,788,315 | ||
Granted (shares) | 1,072,556 | 1,268,124 | 978,849 |
Vested (shares) | (1,220,559) | ||
Canceled/Forfeited (shares) | (463,843) | ||
Non-vested options end of period (shares) | 3,176,469 | 3,788,315 | |
Weighted Avg. Exercise Price | |||
Non-vested options at beginning of period (in dollars per share) | $ 22.43 | ||
Granted (in dollars per share) | 24.14 | $ 28.30 | $ 19.82 |
Vested (in dollars per share) | 21.09 | ||
Canceled/Forfeited (in dollars per share) | 24.05 | ||
Non-vested options at end of period (in dollars per share) | $ 23.30 | $ 22.43 |
Stock-Based Compensation - No79
Stock-Based Compensation - Non-Vested RSUs (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Non-vested RSUs beginning of period (shares) | 53,813 | 0 | |
Granted (shares) | 96,952 | 58,883 | 0 |
Vested (shares) | (12,866) | 0 | |
Canceled/Forfeited (shares) | (12,592) | (5,070) | |
Non-vested RSUs end of period (shares) | 125,307 | 53,813 | 0 |
Weighted Average Grant Date Fair Value [Abstract] | |||
Non-vested RSUs at beginning of period (in dollars per share) | $ 29.06 | $ 0 | |
Granted (in dollars per share) | 23.20 | 29.08 | |
Vested (in dollars per share) | 29.09 | 0 | |
Canceled/Forfeited (in dollars per share) | 27.62 | 29.31 | |
Non-vested RSUs at end of period (in dollars per share) | $ 24.67 | $ 29.06 | $ 0 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | 10 Months Ended | 12 Months Ended | 40 Months Ended | ||||||
Mar. 31, 2016 | May. 21, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2012 | Mar. 31, 2007 | Jul. 31, 2014 | Feb. 28, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
Award maximum term | 10 years | ||||||||
Stock-based compensation expense | $ 7,500,000 | $ 6,400,000 | $ 7,000,000 | ||||||
Tax benefit on stock-based compensation | 2,800,000 | 2,200,000 | 2,500,000 | ||||||
Excess tax benefit related to stock options exercised | 4,000,000 | 5,800,000 | 5,800,000 | ||||||
Unrecognized compensation cost | $ 16,700,000 | $ 16,700,000 | |||||||
Unrecognized compensation cost, weighted-average period of recognition | 2 years 3 months 18 days | ||||||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||||||
Treasury stock, shares, acquired | 1,552,500 | ||||||||
Treasury stock, value, acquired, cost method | $ 40,000,000 | ||||||||
Treasury stock acquired, average cost per share | $ 25.76 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 160,000,000 | $ 160,000,000 | |||||||
Expected dividends | $ 0 | $ 0 | $ 0 | ||||||
Weighted-average grant date fair value (in dollars per share) | $ 6.92 | $ 9.21 | $ 8.06 | ||||||
Fair value of options vested | $ 9,800,000 | $ 1,300,000 | $ 1,800,000 | ||||||
2006 Option Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares authorized to be granted | 11,239,290 | ||||||||
2012 Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares authorized to be granted | 8,350,000 | ||||||||
Vesting period | 4 years | ||||||||
Award maximum term | 10 years | ||||||||
Percentage vesting after three years | 50.00% | ||||||||
Percentage vesting after five years | 50.00% | ||||||||
2012 Incentive Plan | 50% vest after three years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
2012 Incentive Plan | 50% vest after five years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 5 years | ||||||||
2012 Incentive Plan | Options granted to directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | 4 years | |||||||
RSUs granted (in shares) | 96,952 | 58,883 | 0 | ||||||
Weighted-average grant date fair value of RSUs granted (in dollars per share) | $ 23.20 | $ 29.08 | |||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value | $ 24.67 | $ 24.67 | $ 29.06 | $ 0 | |||||
Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
RSUs granted (in shares) | 50,711 | ||||||||
Weighted-average grant date fair value of RSUs granted (in dollars per share) | $ 28.57 | ||||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, number | 49,136 | 49,136 | |||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, outstanding, weighted average grant date fair value | $ 28.57 | $ 28.57 | |||||||
Share-based compensation arrangement by share-based payment award, non-option equity instruments, forfeitures | 1,575 | ||||||||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, nonvested, weighted average grant date fair value | $ 28.57 | $ 28.57 | |||||||
Minimum | Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 0.00% | ||||||||
Maximum | Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based compensation arrangement by share-based payment award, award vesting rights, percentage | 200.00% | ||||||||
Director | 2012 Incentive Plan | Options granted to directors | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years |
Stock-Based Compensation - Fa81
Stock-Based Compensation - Fair Value PSUs (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility factor | 24.00% | 26.00% | 35.00% |
Weighted-average risk-free interest rate | 1.82% | 2.10% | 1.57% |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility factor | 31.00% | ||
Weighted-average risk-free interest rate | 1.01% | ||
Expected dividend rate | 0.00% | ||
PSU fair value per share | $ 32.06 |
Retirement Benefits - Pension a
Retirement Benefits - Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 2.2 | $ 1.4 | $ 1.8 |
Interest cost | 25.5 | 30 | 30.1 |
Expected return on plan assets | (28.8) | (29.8) | (30.5) |
Prior service cost | 0.1 | 0.2 | 0.2 |
Settlement loss | 0 | 6.5 | 0 |
Recognition of actuarial losses (gains) | 13 | 51.7 | 2.7 |
Net periodic benefit cost | 12 | 60 | 4.3 |
Other Postretirement Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 1.2 | 1.3 | 1.2 |
Prior service cost | (2) | (1.9) | (1.9) |
Recognition of actuarial losses (gains) | (0.1) | 1.2 | 0 |
Net periodic benefit cost | $ (0.8) | $ 0.7 | $ (0.6) |
Retirement Benefits - Status of
Retirement Benefits - Status of Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Actuarial (losses) gains | $ 12.9 | $ 59.4 | $ 2.7 |
Plan assets at the beginning of the period | 543.2 | ||
Plan assets at end of period | 503.6 | 543.2 | |
Net amount on Consolidated Balance Sheets consists of: | |||
Current liabilities | (5) | (5) | |
Long-term liabilities | (195.5) | (203) | |
Pension Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefit obligation at beginning of period | (718.8) | (700) | |
Service cost | (2.2) | (1.4) | (1.8) |
Interest cost | (25.5) | (30) | (30.1) |
Actuarial (losses) gains | 35.1 | (114.2) | |
Benefits paid | 38.8 | 40.8 | |
Plan participant contributions | (0.4) | (0.4) | |
Settlements | 0 | 65 | |
Translation adjustment | (1) | 21.4 | |
Benefit obligation at end of period | (674) | (718.8) | (700) |
Plan assets at the beginning of the period | 543.2 | 577.7 | |
Actual return on plan assets | (9.5) | 65 | |
Contributions | 8.6 | 12.5 | |
Benefits paid | (38.8) | (40.8) | |
Settlements | 0 | (65) | |
Translation adjustment | 0.1 | (6.2) | |
Plan assets at end of period | 503.6 | 543.2 | 577.7 |
Funded status of plans | (170.4) | (175.6) | |
Net amount on Consolidated Balance Sheets consists of: | |||
Long-term assets | 0.5 | 0 | |
Current liabilities | (2.4) | (2.3) | |
Long-term liabilities | (168.5) | (173.3) | |
Total net funded status | (170.4) | (175.6) | |
Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefit obligation at beginning of period | (32.4) | (31.2) | |
Service cost | (0.1) | (0.1) | (0.1) |
Interest cost | (1.2) | (1.3) | (1.2) |
Actuarial (losses) gains | 0.7 | (2.1) | |
Benefits paid | 4 | 3.2 | |
Plan participant contributions | (0.6) | (0.9) | |
Settlements | 0 | 0 | |
Translation adjustment | 0 | 0 | |
Benefit obligation at end of period | (29.6) | (32.4) | (31.2) |
Plan assets at the beginning of the period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Contributions | 4 | 3.2 | |
Benefits paid | (4) | (3.2) | |
Settlements | 0 | 0 | |
Translation adjustment | 0 | 0 | |
Plan assets at end of period | 0 | 0 | $ 0 |
Funded status of plans | (29.6) | (32.4) | |
Net amount on Consolidated Balance Sheets consists of: | |||
Long-term assets | 0 | 0 | |
Current liabilities | (2.6) | (2.7) | |
Long-term liabilities | (27) | (29.7) | |
Total net funded status | $ (29.6) | $ (32.4) |
Retirement Benefits - Accumulat
Retirement Benefits - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost (credit) | $ (5) | $ (6.9) |
Unrecognized actuarial loss | 62.5 | 72.9 |
Accumulated other comprehensive loss (income), gross | 57.5 | 66 |
Deferred income tax (benefit) provision | (21.9) | (24.9) |
Accumulated other comprehensive loss (income), net | 35.6 | 41.1 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost (credit) | 0.1 | 0.2 |
Unrecognized actuarial loss | 61.9 | 71.7 |
Accumulated other comprehensive loss (income), gross | 62 | 71.9 |
Deferred income tax (benefit) provision | (23.6) | (27.4) |
Accumulated other comprehensive loss (income), net | 38.4 | 44.5 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost (credit) | (5.1) | (7.1) |
Unrecognized actuarial loss | 0.6 | 1.2 |
Accumulated other comprehensive loss (income), gross | (4.5) | (5.9) |
Deferred income tax (benefit) provision | 1.7 | 2.5 |
Accumulated other comprehensive loss (income), net | $ (2.8) | $ (3.4) |
Retirement Benefits - Significa
Retirement Benefits - Significant Assumptions (Details) | 12 Months Ended | ||
Mar. 31, 2016Rate | Mar. 31, 2015Rate | Mar. 31, 2014Rate | |
Pension Benefits | |||
Benefit Obligations: | |||
Discount rate | 3.84% | 3.70% | 4.54% |
Rate of compensation increase | 3.07% | 3.40% | 3.41% |
Net Periodic Benefit Cost: | |||
Discount rate | 3.70% | 4.54% | 4.25% |
Rate of compensation increase | 3.40% | 3.41% | 3.42% |
Expected return on plan assets | 5.33% | 5.30% | 5.48% |
Other Postretirement Benefits | |||
Benefit Obligations: | |||
Discount rate | 3.90% | 3.80% | 4.30% |
Net Periodic Benefit Cost: | |||
Discount rate | 3.80% | 4.30% | 3.80% |
Retirement Benefits - Target In
Retirement Benefits - Target Investment Allocations (Details) | 12 Months Ended | |
Mar. 31, 2016Rate | Mar. 31, 2015Rate | |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment policy, minimum allocation | 20.00% | |
Investment policy, maximum allocation | 30.00% | |
Target Allocation | 29.00% | |
Actual Allocation | 28.00% | 28.00% |
Debt securities (including cash and cash equivalents) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment policy, minimum allocation | 55.00% | |
Investment policy, maximum allocation | 80.00% | |
Target Allocation | 66.00% | |
Actual Allocation | 66.00% | 67.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment policy, minimum allocation | 0.00% | |
Investment policy, maximum allocation | 10.00% | |
Target Allocation | 5.00% | |
Actual Allocation | 6.00% | 5.00% |
Retirement Benefits - Fair Valu
Retirement Benefits - Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 503.6 | $ 543.2 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.7 | 1.8 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 441.8 | 475.1 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60.1 | 66.3 | $ 70.1 |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.6 | 7.4 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1.7 | 1.8 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4.9 | 5.6 | |
Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 328.8 | 355.5 | |
Fixed income funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 328.8 | 355.5 | |
Fixed income funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
US equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63.7 | 68.1 | |
US equity funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
US equity funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63.7 | 68.1 | |
US equity funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35.3 | 35.8 | |
International equity funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equity funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35.3 | 35.8 | |
International equity funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Balanced funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9.1 | 10.1 | |
Balanced funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Balanced funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9.1 | 10.1 | |
Balanced funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37.5 | 42.9 | |
Alternative Investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative Investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative Investments | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37.5 | 42.9 | 53.6 |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22.6 | 23.4 | |
Insurance contracts | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance contracts | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance contracts | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 22.6 | $ 23.4 | $ 16.5 |
Retirement Benefits - Changes i
Retirement Benefits - Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | $ 543.2 | |
Actual return on assets: | ||
Plan assets at end of period | 503.6 | $ 543.2 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 66.3 | 70.1 |
Actual return on assets: | ||
Related to assets held at reporting date | (3.2) | 5.3 |
Related to assets sold during the period | 1.5 | 2.3 |
Purchases, sales, issuances and settlements | (4.5) | (11.4) |
Transfers in and/or out of Level 3 | 0 | |
Plan assets at end of period | 60.1 | 66.3 |
Alternative Investments | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 42.9 | |
Actual return on assets: | ||
Plan assets at end of period | 37.5 | 42.9 |
Alternative Investments | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 42.9 | 53.6 |
Actual return on assets: | ||
Related to assets held at reporting date | (2.4) | (1.6) |
Related to assets sold during the period | 1.5 | 2.3 |
Purchases, sales, issuances and settlements | (4.5) | (11.4) |
Transfers in and/or out of Level 3 | 0 | |
Plan assets at end of period | 37.5 | 42.9 |
Insurance Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 23.4 | |
Actual return on assets: | ||
Plan assets at end of period | 22.6 | 23.4 |
Insurance Contracts | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 23.4 | 16.5 |
Actual return on assets: | ||
Related to assets held at reporting date | (0.8) | 6.9 |
Related to assets sold during the period | 0 | 0 |
Purchases, sales, issuances and settlements | 0 | 0 |
Transfers in and/or out of Level 3 | 0 | |
Plan assets at end of period | $ 22.6 | $ 23.4 |
Retirement Benefits - Expected
Retirement Benefits - Expected Future Benefit Payments (Details) $ in Millions | Mar. 31, 2016USD ($) |
Pension Benefits: | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 40.1 |
2,018 | 40.3 |
2,019 | 40.5 |
2,020 | 40.2 |
2,021 | 40.2 |
2022-2026 | 200.4 |
Other Postretirement Benefits: | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 2.6 |
2,018 | 2.7 |
2,019 | 2.6 |
2,020 | 2.5 |
2,021 | 2.4 |
2022-2026 | $ 9.9 |
Retirement Benefits - Assumed H
Retirement Benefits - Assumed Health Care Cost Trend (Details) - Other Postretirement Benefits: - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Defined Benefit Plan, Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
One percentage point increase - Increase (decrease) in total of service and interest cost components | $ 0.1 | $ 0.1 | $ 0.1 |
One percentage point decrease - increase (decrease) in total of service and interest cost components | (0.1) | (0.1) | (0.1) |
One percentage point increase - increase (decrease) in postretirement benefit obligation | 2.6 | 2.9 | 2.4 |
One percentage point decrease - increase (decrease) in postretirement benefit obligation | $ (2.2) | $ (2.5) | $ (2.1) |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016USD ($)categoryRate | Mar. 31, 2015USD ($)participant | Mar. 31, 2014USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial (losses) gains | $ 12.9 | $ 59.4 | $ 2.7 |
Defined benefit plan, non-cash gain (loss) related to remeasurement of assumptions | 12.9 | ||
Defined benefit plan, non-cash gain (loss) related to remeasurement of assumptions and adoption revised tables and scales | 59.4 | ||
Inactive participants | participant | 4,500 | ||
Settlement paid | $ 65 | ||
Non-cash actuarial gains (losses) | 6.5 | ||
Plan assets | 503.6 | 543.2 | |
Multi-employer and government-sponsored plans - Expense recognized | 0.2 | 0.2 | 0.3 |
Defined contribution savings plan - expense recognized | 14.2 | 15.2 | 15.6 |
U.S qualified pension plan trusts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions | 4.9 | 7.9 | 7.8 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial (losses) gains | 35.1 | (114.2) | |
Plan assets | 503.6 | 543.2 | 577.7 |
Contributions | 8.6 | 12.5 | |
Expected contributions in fiscal 2016 | 0.4 | ||
Projected benefit obligation | 674 | 718.8 | 700 |
Under-funded status | 170.4 | 175.6 | |
Future amortization of prior service cost (credit) | $ 0.1 | ||
Number of investment categories | category | 2 | ||
Pension plans that are not fully funded - projected benefit obligation | $ 665.3 | 717.7 | |
Pension plans that are not fully funded - accumulated benefit obligation | 657.1 | 706.3 | |
Pension plans that are not fully funded - fair value of plan assets | 494.5 | 541.5 | |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial (losses) gains | 0.7 | (2.1) | |
Plan assets | 0 | 0 | 0 |
Contributions | 4 | 3.2 | |
Expected contributions in fiscal 2016 | 2.6 | ||
Projected benefit obligation | 29.6 | 32.4 | $ 31.2 |
Under-funded status | 29.6 | $ 32.4 | |
Future amortization of prior service cost (credit) | $ (2) | ||
Assumed health care cost trend rate, percent | Rate | 7.00% | ||
Ultimate health care cost trend rate, percent | Rate | 5.00% |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Current: | |||
United States | $ 24 | $ 17.2 | $ 0.8 |
Non-United States | 15.3 | 15.6 | 14.6 |
State and local | 3.9 | 4.7 | 1.6 |
Total current | 43.2 | 37.5 | 17 |
Deferred: | |||
United States | (10.2) | (8.2) | (8.6) |
Non-United States | 1.1 | (10.5) | (16.4) |
State and local | (17) | (2) | (2) |
Total deferred | (26.1) | (20.7) | (27) |
Provision (benefit) for income taxes | $ 17.1 | $ 16.8 | $ (10) |
Income Taxes - U.S. Statutory I
Income Taxes - U.S. Statutory Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Provision for income taxes at U.S. federal statutory income tax rate | $ 30.1 | $ 37.9 | $ 5.2 |
State and local income taxes, net of federal benefit | 2.7 | 2.6 | (1.1) |
Net effects of foreign rate differential | (3) | (3.3) | (3.6) |
Net effects of foreign related operations | (2.1) | 8.9 | 5.7 |
Net effect to deferred taxes for changes in tax rates | (0.8) | 0.2 | 0.6 |
Unrecognized tax benefits, net of federal benefit | (11.3) | (0.5) | (4.7) |
Domestic production activities deduction | (1.3) | (2.3) | 0 |
Change in valuation allowance | 2.3 | (27.4) | (11.5) |
Other | 0.5 | 0.7 | (0.6) |
Provision (benefit) for income taxes | $ 17.1 | $ 16.8 | $ (10) |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
United States | $ 45.3 | $ 89.9 | $ (25.9) |
Non-United States | 40.7 | 18.7 | 40.9 |
Income from continuing operations before income taxes | $ 86 | $ 108.6 | $ 15 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Mar. 31, 2015 |
Deferred tax assets: | ||
Compensation and retirement benefits | $ 84.4 | $ 86.9 |
General accruals and reserves | 18.3 | 16.9 |
State tax net operating loss carryforwards | 19.6 | 20.9 |
Foreign tax credit carryforwards | 4.3 | 26.5 |
Foreign net operating loss carryforwards | 17.7 | 17.1 |
Other | 14.5 | 15.3 |
Total deferred tax assets before valuation allowance | 158.8 | 183.6 |
Valuation allowance | (27.2) | (25) |
Total deferred tax assets | 131.6 | 158.6 |
Deferred tax liabilities: | ||
Property, plant and equipment | 42.8 | 47.8 |
Inventories | 30.1 | 30.8 |
Intangible assets and goodwill | 197.7 | 218.5 |
Cancellation of indebtedness | 43.4 | 58.8 |
Total deferred tax liabilities | 314 | 355.9 |
Net deferred tax liabilities | 182.4 | 197.3 |
Net amount on Consolidated Balance Sheet consists of: | ||
Other assets | 3.6 | 6 |
Deferred income taxes | (186) | (203.3) |
Net long-term deferred tax liabilities | $ (182.4) | $ (197.3) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $ 21.7 | $ 20.9 |
Additions based on tax positions related to the current year | 0.8 | 3.2 |
Additions for tax positions of prior years | 1.2 | 0 |
Reductions for tax positions of prior years | (0.1) | 0 |
Reductions due to lapse of applicable statute of limitations | (10.3) | (1.7) |
Cumulative translation adjustment | (0.1) | (0.7) |
Balance at end of period | $ 13.2 | $ 21.7 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||
Foreign tax credit carryforward period | 10 years | ||
U.S. federal net operating loss carryforward period | 20 years | ||
Foreign net operating loss carryforward period | 5 years | ||
Foreign NOL carryforwards | $ 79 | ||
Valuation allowance for foreign NOL carryforward | 7.2 | ||
Undistributed earnings of foreign subsidiaries | 174.8 | ||
Undistributed earnings of foreign subsidiaries, potential related taxes | 4.4 | ||
Other liabilities | 13.3 | $ 17.9 | |
Net cash paid for income taxes | 46.9 | 21.2 | $ 13.6 |
Liability for unrecognized tax benefits | 15.6 | 26.6 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 3.8 | 12.4 | |
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | (8.6) | 0.7 | $ (0.6) |
State tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
State tax net operating loss carryforwards | 508.9 | ||
State tax net operating loss carryforwards, valuation allowance | $ 18.1 | ||
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforward period, minimum of range | 5 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforward period, minimum of range | 20 years | ||
Other current liabilities | |||
Operating Loss Carryforwards [Line Items] | |||
Accrued income taxes, current | $ 15 | 19.2 | |
Other current assets | |||
Operating Loss Carryforwards [Line Items] | |||
Income taxes receivable | $ 1.7 | $ 1.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2013USD ($) | Mar. 31, 2016USD ($)claimantlawsuitRate | Dec. 31, 2002claimantlawsuitdefendantRate | Nov. 30, 2002USD ($) | |
Loss Contingencies [Line Items] | ||||
Indemnity obligations (in excess of) | $ 900,000,000 | |||
Liability for asbestos and environmental claims, net, period increase (decrease) | $ (3,000,000) | |||
Available insurance coverage | 244,900,000 | |||
Layer 1 | ||||
Loss Contingencies [Line Items] | ||||
Available insurance coverage | $ 168,900,000 | |||
Environmental Issue | Ellsworth Industrial Park Site | ||||
Loss Contingencies [Line Items] | ||||
Number of defendants (at least) | defendant | 10 | |||
Percentage of indemnity obligations paid by seller | 100.00% | |||
Asbestos Issue | Stearns | ||||
Loss Contingencies [Line Items] | ||||
Percentage of indemnity obligations paid by seller | 100.00% | |||
Number of pending claims | claimant | 300 | |||
Asbestos Issue | Prager | ||||
Loss Contingencies [Line Items] | ||||
Number of pending lawsuits | lawsuit | 2 | |||
Percentage of costs paid by insurance providers | Rate | 100.00% | |||
Asbestos Issue | Falk | ||||
Loss Contingencies [Line Items] | ||||
Percentage of indemnity obligations paid by seller | Rate | 100.00% | |||
Number of pending claims | claimant | 100 | |||
Asbestos Issue | Zurn | ||||
Loss Contingencies [Line Items] | ||||
Number of pending claims | claimant | 19,000 | |||
Number of pending lawsuits | lawsuit | 6,000 | |||
Timeframe of estimated claims disbursements | 10 years | |||
Estimate of potential liability | $ 32,000,000 | |||
Amount expected to be paid by insurance providers | 23,000,000 | |||
Receivable from insurance carriers | $ 32,000,000 | |||
Damages from Product Defects | Zurn | ||||
Loss Contingencies [Line Items] | ||||
Claim settlement funding period | 7 years | |||
Settlement amount | $ 20,000,000 | |||
Settlement, plaintiffs' attorneys' fees and expenses | $ 8,500,000 |
Common Stock Repurchases and 99
Common Stock Repurchases and Public Offerings (Details) - USD ($) | Feb. 05, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 28, 2015 |
Stock repurchase program, authorized amount | $ 200,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 160,000,000 | ||||
Sale of common stock (in shares) | 3,000,000 | 3,000,000 | |||
Offering price (in dollars per share) | $ 25.75 | $ 25.75 | |||
Aggregate offering proceeds, net - common stock offering | $ 73,800,000 | $ 73,800,000 | |||
Aggregate offering proceeds, net - initial public offering | $ 0 | $ 0 | $ 73,800,000 | ||
Common Stock | |||||
Stock repurchase program, authorized amount | $ 200,000,000 | ||||
Stock Repurchased During Period, Shares | 1,552,500 | ||||
Stock Repurchased During Period, Value | $ 40,000,000 | ||||
Stock repurchase program, remaining authorized repurchase amount | $ 160,000,000 |
Business Segment Information (D
Business Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2016USD ($)segment | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of segments | segment | 2 | ||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | $ 492.6 | $ 460.2 | $ 485.9 | $ 485.1 | $ 518.5 | $ 497.1 | $ 531 | $ 503.6 | $ 1,923.8 | $ 2,050.2 | $ 2,034.3 |
Income (loss) from operations | 174.3 | 203.7 | 272.4 | ||||||||
Non-operating expense: | |||||||||||
Interest expense, net | (91.4) | (87.9) | (109.1) | ||||||||
Loss on the extinguishment of debt | 0 | 0 | (133.2) | ||||||||
Other income (expense), net | 3.1 | (7.2) | (15.1) | ||||||||
Income from continuing operations before income taxes | 86 | 108.6 | 15 | ||||||||
Provision (benefit) for income taxes | 17.1 | 16.8 | (10) | ||||||||
Net income from continuing operations | 0.8 | 24.3 | 22.6 | 21.2 | 35.7 | 6.7 | 37.8 | 11.6 | 68.9 | 91.8 | 25 |
(Loss) income from discontinued operations, net of tax | (1.4) | 0 | 0 | 0 | (3.2) | (4.5) | (0.7) | 0.4 | (1.4) | (8) | 4.6 |
Net income | (0.6) | 24.3 | 22.6 | 21.2 | 32.5 | 2.2 | 37.1 | 12 | 67.5 | 83.8 | 29.6 |
Non-controlling interest loss | (0.2) | (0.1) | 0 | (0.1) | 0.2 | 0 | (0.1) | (0.1) | (0.4) | 0 | (0.6) |
Net income attributable to Rexnord | (0.4) | $ 24.4 | $ 22.6 | $ 21.3 | 32.3 | $ 2.2 | $ 37.2 | $ 12.1 | 67.9 | 83.8 | 30.2 |
Depreciation and Amortization | 115.4 | 112.2 | 106.9 | ||||||||
Capital Expenditures | 52.1 | 48.8 | 52.2 | ||||||||
Total Assets | 3,354.8 | 3,409.3 | 3,354.8 | 3,409.3 | 3,370.8 | ||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 1,923.8 | 2,050.2 | 2,034.3 | ||||||||
Long-lived Assets | 397.2 | 417.6 | 397.2 | 417.6 | 423.7 | ||||||
United States | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 1,306.9 | 1,380 | 1,337.2 | ||||||||
Long-lived Assets | 276 | 279.4 | 276 | 279.4 | 284.6 | ||||||
Europe | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 370.8 | 374 | 409.1 | ||||||||
Long-lived Assets | 80.5 | 92.1 | 80.5 | 92.1 | 98.6 | ||||||
Rest of World | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 246.1 | 296.2 | 288 | ||||||||
Long-lived Assets | 40.7 | 46.1 | 40.7 | 46.1 | 40.5 | ||||||
Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 1,100.3 | 1,230.2 | 1,238.2 | ||||||||
Income (loss) from operations | 146.8 | 219.6 | 237.7 | ||||||||
Non-operating expense: | |||||||||||
Depreciation and Amortization | 77.3 | 74.1 | 69.7 | ||||||||
Capital Expenditures | 43.6 | 37.7 | 39.4 | ||||||||
Total Assets | 2,412.7 | 2,419 | 2,412.7 | 2,419 | 2,251.4 | ||||||
Process & Motion Control | Original equipment manufacturers/ end-users | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 572.3 | 642.1 | 621.1 | ||||||||
Process & Motion Control | Maintenance, repair, and operations | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 528 | 588.1 | 617.1 | ||||||||
Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 823.5 | 820 | 796.1 | ||||||||
Income (loss) from operations | 72.8 | 79 | 72.2 | ||||||||
Non-operating expense: | |||||||||||
Depreciation and Amortization | 38.1 | 38.1 | 37.2 | ||||||||
Capital Expenditures | 8.5 | 11.1 | 12.8 | ||||||||
Total Assets | 933.2 | 981.9 | 933.2 | 981.9 | 1,038.7 | ||||||
Water Management | Water safety, quality, flow control and conservation | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 534.1 | 517.1 | 465.6 | ||||||||
Water Management | Water infrastructure | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 289.4 | 302.9 | 330.5 | ||||||||
Corporate | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Income (loss) from operations | (45.3) | (94.9) | (37.5) | ||||||||
Non-operating expense: | |||||||||||
Total Assets | $ 8.9 | $ 8.4 | $ 8.9 | $ 8.4 | $ 80.7 |
Quarterly Results of Operati101
Quarterly Results of Operations (unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 492.6 | $ 460.2 | $ 485.9 | $ 485.1 | $ 518.5 | $ 497.1 | $ 531 | $ 503.6 | $ 1,923.8 | $ 2,050.2 | $ 2,034.3 |
Gross profit | 167.8 | 158.3 | 169.3 | 169.8 | 189.5 | 181.5 | 197 | 178.2 | 665.2 | 746.2 | 753.4 |
Net income from continuing operations | 0.8 | 24.3 | 22.6 | 21.2 | 35.7 | 6.7 | 37.8 | 11.6 | 68.9 | 91.8 | 25 |
Loss from discontinued operations, net of tax | (1.4) | 0 | 0 | 0 | (3.2) | (4.5) | (0.7) | 0.4 | (1.4) | (8) | 4.6 |
Net income | (0.6) | 24.3 | 22.6 | 21.2 | 32.5 | 2.2 | 37.1 | 12 | 67.5 | 83.8 | 29.6 |
Non-controlling interest (loss) | (0.2) | (0.1) | 0 | (0.1) | 0.2 | 0 | (0.1) | (0.1) | (0.4) | 0 | (0.6) |
Net income attributable to Rexnord | $ (0.4) | $ 24.4 | $ 22.6 | $ 21.3 | $ 32.3 | $ 2.2 | $ 37.2 | $ 12.1 | $ 67.9 | $ 83.8 | $ 30.2 |
Net income per share from continuing operations: | |||||||||||
Basic (in dollars per share) | $ 0.01 | $ 0.24 | $ 0.23 | $ 0.21 | $ 0.35 | $ 0.07 | $ 0.37 | $ 0.11 | $ 0.68 | $ 0.90 | $ 0.25 |
Diluted (in dollars per share) | 0.01 | 0.24 | 0.22 | 0.20 | 0.34 | 0.06 | 0.36 | 0.11 | 0.67 | 0.88 | 0.25 |
Income (loss) per share from discontinued operations: | |||||||||||
Basic (in dollars per share) | (0.01) | 0 | 0 | 0 | (0.03) | (0.04) | (0.01) | 0 | (0.01) | (0.08) | 0.05 |
Diluted (in dollars per share) | (0.01) | 0 | 0 | 0 | (0.03) | (0.04) | (0.01) | 0 | (0.01) | (0.08) | 0.05 |
Net income per share attributable to Rexnord: | |||||||||||
Basic (in dollars per share) | 0 | 0.24 | 0.23 | 0.21 | 0.32 | 0.02 | 0.37 | 0.12 | 0.67 | 0.82 | 0.31 |
Diluted (in dollars per share) | $ 0 | $ 0.24 | $ 0.22 | $ 0.20 | $ 0.31 | $ 0.02 | $ 0.36 | $ 0.12 | $ 0.66 | $ 0.80 | $ 0.30 |
Related Party Transactions (Det
Related Party Transactions (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2014USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2014USD ($) | Mar. 31, 2006agreement | Apr. 01, 2015shares | |
Related Party Transaction [Line Items] | |||||
Number of stockholder agreements | agreement | 2 | ||||
Offering expenses (excluding underwriters' discounts and commissions) paid by the Company on behalf of selling stockholders | $ 0.5 | $ 1.4 | |||
Apollo | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction, ownership outstanding stock, shares | shares | 0 | ||||
Apollo Global Securities, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Related party, offering discounts and commissions | $ 0.1 |
Schedule II - Valuation and 103
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Valuation allowance for trade and notes receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 16.8 | $ 6.4 | $ 7.7 |
Charged to Costs and Expenses | (6.8) | 10.7 | 1 |
Acquired Obligations | 0 | 0.6 | 0.2 |
Charged to Other Accounts | (0.1) | (0.4) | (0.1) |
Deductions | (1) | (0.5) | (2.4) |
Balance at End of Year | 8.9 | 16.8 | 6.4 |
Valuation allowance for excess and obsolete inventory | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 35.7 | 33.8 | 30.5 |
Charged to Costs and Expenses | 9.5 | 5.2 | 3.8 |
Acquired Obligations | 0 | 0.8 | 4.1 |
Charged to Other Accounts | (0.3) | (0.6) | 0.2 |
Deductions | (7.3) | (3.5) | (4.8) |
Balance at End of Year | 37.6 | 35.7 | 33.8 |
Valuation allowance for income taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 25 | 54.4 | 73.1 |
Charged to Costs and Expenses | 4.2 | 2 | 3.9 |
Acquired Obligations | 0 | 0 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (2) | (31.4) | (22.6) |
Balance at End of Year | $ 27.2 | $ 25 | $ 54.4 |