Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | May 12, 2017 | Sep. 30, 2016 | |
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, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding (in shares) | 103,661,298 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,193.2 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 490.1 | $ 484.6 |
Receivables, net | 322.9 | 317.6 |
Inventories | 314.9 | 327.2 |
Other current assets | 50.2 | 46.7 |
Total current assets | 1,178.1 | 1,176.1 |
Property, plant and equipment, net | 400.9 | 397.2 |
Intangible assets, net | 558.6 | 520.9 |
Goodwill | 1,318.2 | 1,193.8 |
Other assets | 83.5 | 66.8 |
Total assets | 3,539.3 | 3,354.8 |
Current liabilities: | ||
Current maturities of debt | 16.5 | 20.2 |
Trade payables | 197.8 | 200.8 |
Compensation and benefits | 54.3 | 54 |
Current portion of pension and postretirement benefit obligations | 4.3 | 5 |
Other current liabilities | 127.4 | 124.4 |
Total current liabilities | 400.3 | 404.4 |
Long-term debt | 1,606.2 | 1,899.9 |
Pension and postretirement benefit obligations | 174.4 | 195.5 |
Deferred income taxes | 208.8 | 186 |
Other liabilities | 79 | 81 |
Total liabilities | 2,468.7 | 2,766.8 |
Stockholders' equity: | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued and outstanding: 103,600,540 at March 31, 2017 and 101,435,762 at March 31, 2016 | 1 | 1 |
Preferred stock, $0.01 par value; 10,000,000 shares authorized; shares of 5.75% Series A Mandatory Convertible Preferred Stock issued and outstanding: 402,500 at March 31, 2017 and 0 at March 31, 2016 | 0 | 0 |
Additional paid-in capital | 1,262.1 | 856.2 |
Retained deficit | (55.5) | (129.6) |
Accumulated other comprehensive loss | (137) | (139) |
Total Rexnord stockholders' equity | 1,070.6 | 588.6 |
Non-controlling interest | 0 | (0.6) |
Total stockholders' equity | 1,070.6 | 588 |
Total liabilities and stockholders' equity | $ 3,539.3 | $ 3,354.8 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Common Stock | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized (in shares) | 200,000,000 | 200,000,000 |
Shares issued (in shares) | 103,600,540 | 101,435,762 |
Shares outstanding (in shares) | 103,600,540 | 101,435,762 |
Redeemable Convertible Preferred Stock | ||
Preferred Stock | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized (in shares) | 10,000,000 | 10,000,000 |
Shares issued (in shares) | 402,500 | 0 |
Shares outstanding (in shares) | 402,500 | 0 |
Dividend rate, percentage | 5.75% |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 1,918.2 | $ 1,923.8 | $ 2,050.2 |
Cost of sales | 1,250.2 | 1,258.6 | 1,304 |
Gross profit | 668 | 665.2 | 746.2 |
Selling, general and administrative expenses | 413.2 | 385.7 | 415.1 |
Restructuring and other similar charges | 31.6 | 34.9 | 12.9 |
Actuarial (gain) loss on pension and postretirement benefit obligations | (2.6) | 12.9 | 59.4 |
Amortization of intangible assets | 42.1 | 57.4 | 55.1 |
Income from operations | 183.7 | 174.3 | 203.7 |
Non-operating (expense) income: | |||
Interest expense, net | (88.7) | (91.4) | (87.9) |
Loss on the extinguishment of debt | (7.8) | 0 | 0 |
Other (expense) income, net | (5.2) | 3.1 | (7.2) |
Income from continuing operations before income taxes | 82 | 86 | 108.6 |
Provision for income taxes | 7.9 | 17.1 | 16.8 |
Net income from continuing operations | 74.1 | 68.9 | 91.8 |
Loss from discontinued operations, net of tax | 0 | (1.4) | (8) |
Net income | 74.1 | 67.5 | 83.8 |
Non-controlling interest loss | 0 | (0.4) | 0 |
Net income attributable to Rexnord | 74.1 | 67.9 | 83.8 |
Dividends on preferred stock | (7.3) | 0 | 0 |
Net income attributable to Rexnord common stockholders | $ 66.8 | $ 67.9 | $ 83.8 |
Basic net income (loss) per share attributable to Rexnord common stockholders: | |||
Continuing operations (in dollars per share) | $ 0.65 | $ 0.69 | $ 0.90 |
Discontinued operations (in dollars per share) | 0 | (0.01) | (0.08) |
Net income attributable to Rexnord common shareholders | 0.65 | 0.67 | 0.82 |
Diluted income (loss) per share attributable to Rexnord common stockholders: | |||
Continuing operations (in dollars per share) | 0.64 | 0.67 | 0.88 |
Discontinued operations (in dollars per share) | 0 | (0.01) | (0.08) |
Net income attributable to Rexnord common shareholders | $ 0.64 | $ 0.66 | $ 0.80 |
Weighted-average number of common shares outstanding (in thousands): | |||
Basic (in shares) | 102,753 | 100,841 | 101,530 |
Effect of dilutive stock options (in shares) | 2,031 | 2,469 | 3,197 |
Diluted (in shares) | 104,784 | 103,310 | 104,727 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Rexnord | $ 74.1 | $ 67.9 | $ 83.8 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (12.8) | (10) | (84.3) |
Unrealized gain (loss) on interest rate derivatives, net of tax | 7.4 | (4.3) | (10.9) |
Change in pension and other postretirement defined benefit plans, net of tax | 7.4 | 5.5 | (11.2) |
Other comprehensive income (loss), net of tax | 2 | (8.8) | (106.4) |
Non-controlling interest loss | 0 | (0.4) | 0 |
Total comprehensive income (loss) | $ 76.1 | $ 58.7 | $ (22.6) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Water Management | Common Stock | Preferred Stock | [1] | Additional Paid-In Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive (Loss) Income | Treasury Stock | Non-controlling interest | [3] | Common Stock | Redeemable Convertible Preferred Stock | ||
Beginning balance at Mar. 31, 2014 | $ 562.1 | $ 1 | $ 0 | $ 872.7 | $ (281.3) | $ (23.8) | $ (6.3) | [2] | $ (0.2) | ||||||
Comprehensive income (loss): | |||||||||||||||
Net income | 83.8 | 83.8 | |||||||||||||
Foreign currency translation adjustments | (84.3) | (84.3) | |||||||||||||
Unrealized loss on interest rate derivatives, net of income tax 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 | 1.1 | 1.1 | |||||||||||||
Tax benefit on stock option exercises | 5.8 | 5.8 | |||||||||||||
Ending balance at Mar. 31, 2015 | 552.7 | 1 | 0 | 885.9 | (197.5) | (130.2) | (6.3) | [2] | (0.2) | ||||||
Comprehensive income (loss): | |||||||||||||||
Purchase price, net of cash acquired | 138.2 | ||||||||||||||
Stock repurchased during period, shares (in shares) | 0 | ||||||||||||||
Net income | 67.5 | 67.9 | (0.4) | ||||||||||||
Foreign currency translation adjustments | (10) | (10) | |||||||||||||
Unrealized loss on interest rate derivatives, net of income tax 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 | 5.1 | 5.1 | |||||||||||||
Cancellation of treasury stock | [2] | (6.3) | $ 6.3 | ||||||||||||
Tax benefit on stock option exercises | 4 | 4 | |||||||||||||
Ending balance at Mar. 31, 2016 | 588 | 1 | 0 | 856.2 | (129.6) | (139) | (0.6) | ||||||||
Comprehensive income (loss): | |||||||||||||||
Purchase price, net of cash acquired | $ (1.1) | ||||||||||||||
Stock repurchased during period, shares (in shares) | 1,552,500 | ||||||||||||||
Stock repurchased during period, value | $ 40 | ||||||||||||||
Treasury stock acquired, average price per share (in dollars per share) | $ 25.76 | ||||||||||||||
Shares issued (in shares) | 0 | ||||||||||||||
Par value (in dollars per share) | $ 0.01 | ||||||||||||||
Non-controlling interest percentage | 49.00% | ||||||||||||||
Net income | $ 74.1 | 74.1 | |||||||||||||
Foreign currency translation adjustments | (12.8) | (12.8) | |||||||||||||
Unrealized loss on interest rate derivatives, net of income tax benefit | 7.4 | 7.4 | |||||||||||||
Change in pension and other post retirement defined benefit plans, net of income tax expense (benefit) | 7.4 | 7.4 | |||||||||||||
Total comprehensive income (loss) | 76.1 | 74.1 | 2 | ||||||||||||
Stock-based compensation expense | 13.4 | 13.4 | |||||||||||||
Exercise of stock options | 11 | 11 | |||||||||||||
Acquisition of non-controlling interest | (0.3) | (0.9) | $ 0.6 | ||||||||||||
Preferred stock issuance, net | [1] | 389.7 | 389.7 | ||||||||||||
Preferred stock dividends | (7.3) | (7.3) | |||||||||||||
Ending balance at Mar. 31, 2017 | 1,070.6 | $ 1 | $ 0 | $ 1,262.1 | $ (55.5) | $ (137) | |||||||||
Comprehensive income (loss): | |||||||||||||||
Dividend rate, percentage | 5.75% | ||||||||||||||
Purchase price, net of cash acquired | $ 213.7 | $ 0.3 | |||||||||||||
Stock repurchased during period, shares (in shares) | 0 | ||||||||||||||
Shares issued (in shares) | 402,500 | ||||||||||||||
Par value (in dollars per share) | $ 0.01 | ||||||||||||||
[1] | On December 7, 2016, the Company issued 8,050,000 depositary shares, each of which represents a 1/20th interest in a share of 5.75% Series A Mandatory Convertible Preferred Stock (the "Series A Preferred Stock"), for an offering price of $50 per depository share. Shares of Series A Preferred Stock have a par value of $0.01 per share. | ||||||||||||||
[2] | 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. | ||||||||||||||
[3] | Represents a 49% non-controlling interest in a Water Management joint venture. During the first quarter of fiscal 2017, the Company acquired the remaining non-controlling interest for a cash purchase price of $0.3 million. See Note 3 for additional information. | ||||||||||||||
[4] | During fiscal 2016, the Company repurchased and canceled 1,552,500 shares of common stock at a total cost of 40.0 million at an average price of 25.76. Refer to Note 19 for additional information regarding the stock repurchase program. |
Consolidated Statements of Sto7
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Unrealized gain (loss) on interest rate derivatives, income tax expense (benefit) | $ (4.3) | $ (2.6) | $ (4.2) |
Change in pension and other postretirement defined benefit plans - income tax (expense) benefit | $ (4.4) | $ (3) | $ 4.3 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | |||
Net income | $ 74.1 | $ 67.5 | $ 83.8 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 63.3 | 58 | 57.1 |
Amortization of intangible assets | 42.1 | 57.4 | 55.1 |
Amortization of deferred financing costs | 2.4 | 2 | 2.1 |
Non-cash asset impairment | 1.5 | 17.5 | 0 |
Loss on dispositions of property, plant and equipment | 0.2 | 0.6 | 3 |
Deferred income taxes | (18.4) | (13.9) | (36.9) |
Non-cash charge for disposal of discontinued operations | 0 | 1.5 | 9.7 |
Actuarial (gain) loss on pension and postretirement benefit obligations | (2.6) | 12.9 | 59.4 |
Other non-cash (credits) charges | (1) | 9.6 | (9.8) |
Loss on extinguishment of debt | 7.8 | 0 | 0 |
Stock-based compensation expense | 13.4 | 7.5 | 6.4 |
Changes in operating assets and liabilities: | |||
Receivables | (5.8) | 1.5 | 6.1 |
Inventories | 22.5 | 37.7 | (15.2) |
Other assets | (9.2) | 7.5 | 0.1 |
Accounts payable | (5.3) | (32.4) | 3.7 |
Accruals and other | 10.1 | (15.9) | 21.3 |
Cash provided by operating activities | 195.1 | 219 | 245.9 |
Investing activities | |||
Expenditures for property, plant and equipment | (54.5) | (52.1) | (48.8) |
Acquisitions, net of cash acquired | (213.7) | 1.1 | (138.2) |
Proceeds from dispositions of property, plant and equipment | 4.2 | 5.8 | 0.5 |
Proceeds from divestiture, net of cash | 0 | 0 | 9.2 |
Cash used for investing activities | (264) | (45.2) | (177.3) |
Financing activities | |||
Proceeds from borrowings of debt | 1,590.3 | 0.9 | 0.1 |
Repayments of long-term debt | (1,885.8) | (19.5) | (19.8) |
Proceeds from borrowings of short-term debt | 16.1 | 0 | 11.5 |
Repayments of short-term debt | (19.5) | (5.9) | (16.1) |
Payment of debt issuance costs | (11.8) | (0.9) | 0 |
Deferred acquisition payment | (5.7) | 0 | 0 |
Proceeds from issuance of preferred stock, net of direct offering costs | 389.7 | 0 | 0 |
Payment of preferred stock dividends | (4.4) | 0 | 0 |
Proceeds from exercise of stock options | 11 | 5.1 | 1.1 |
Repurchase of Company common stock | 0 | (40) | 0 |
Excess tax benefit on exercise of stock options | 0 | 4 | 5.8 |
Cash provided by (used for) financing activities | 79.9 | (56.3) | (17.4) |
Effect of exchange rate changes on cash and cash equivalents | (5.5) | (3.2) | (19.9) |
Increase in cash and cash equivalents | 5.5 | 114.3 | 31.3 |
Cash and cash equivalents at beginning of period | 484.6 | 370.3 | 339 |
Cash and cash equivalents at end of period | $ 490.1 | $ 484.6 | $ 370.3 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 12 Months Ended |
Mar. 31, 2017 | |
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 Company currently operates its business in two platforms - Process & Motion Control and Water Management. 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, 2017 | |
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. 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; historically, revisions to estimates have not been significant. Other than a standard product warranty, there are no other significant 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. 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 $10.6 million at March 31, 2017 and $8.9 million at March 31, 2016 . 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% , 8.4% and 8.9% of consolidated net sales for the years ended March 31, 2017 , 2016 and 2015 , respectively. Receivables related to this customer at March 31, 2017 and 2016 were $12.3 million and $8.1 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. The Company’s total inventories valued using the “last-in, first-out” (LIFO) method was 60% and 64% at March 31, 2017 and 2016 , respectively. 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 $7.6 million , $9.5 million and $5.2 million , during fiscal 2017 , 2016 and 2015 , respectively. Property, Plant and Equipment Property, plant and equipment are initially 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. The Company recognized accelerated depreciation of $9.6 million , $2.5 million , and zero during fiscal 2017 , 2016 , and 2015 , respectively. Accelerated depreciation is recorded within Cost of sales in the consolidated statements of operations. 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 7 to 20 years, 3 to 15 years, and 3 to 15 years, respectively. Where appropriate, the lives of certain intangible assets may be adjusted to reflect a change in the use of those assets, or amortization may be accelerated in the case of a known intangible asset discontinuation. 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 accordingly. The Company recognized impairment charges associated with these assets during fiscal 2017 and 2016 , in the amount of $1.5 million and $17.5 million , respectively. There were no impairment charges impacting continuing operations during fiscal 2015. The impairment was determined utilizing Level 3 inputs within the Fair Value hierarchy, and the Company reviewed and considered input from outside specialists, when appropriate. Refer to Note 13 Fair Value Measurements for additional information. 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, 2017 Year Ended March 31, 2016 Year Ended March 31, 2015 Balance at beginning of period $ 6.8 $ 6.8 $ 8.0 Acquired obligations 0.4 — — Charged to operations 3.9 2.8 1.8 Claims settled (3.6 ) (2.8 ) (3.0 ) Balance at end of period $ 7.5 $ 6.8 $ 6.8 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 the 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; 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. Per Share Data Basic net income (loss) per share from continuing and discontinued operations attributable to Rexnord common stockholders is computed by dividing net income from continuing operations and (loss) from discontinued operations attributable to Rexnord common stockholders, 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 attributable to Rexnord common stockholders 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 years ended March 31, 2017 , 2016 and 2015 excludes 4.6 million, 2.9 million and 1.3 million shares due to their anti-dilutive effects, respectively. The computation for diluted net income per share also does not include shares of preferred stock that are convertible into a weighted average of 5.8 million common shares for the fiscal year ended March 31, 2017 . The following table presents the basis for income per share computations (in millions, except share amounts): Year Ended March 31, 2017 March 31, 2016 March 31, 2015 Numerator: Net income from continuing operations $ 74.1 $ 68.9 $ 91.8 Less: Non-controlling interest loss — (0.4 ) — Less: Dividends on preferred stock 7.3 — — Income from continuing operations attributable to Rexnord common stockholders 66.8 69.3 91.8 Loss from discontinued operations — (1.4 ) (8.0 ) Net income attributable to Rexnord common stockholders $ 66.8 $ 67.9 $ 83.8 Denominator: Weighted average common shares outstanding, basic 102,753 100,841 101,530 Effect of dilutive common shares equivalents 2,031 2,469 3,197 Weighted average common shares outstanding, dilutive 104,784 103,310 104,727 Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, for the fiscal years ending March 31, 2017 , 2016 and 2015 are as follows (in millions): Interest Rate Derivatives Foreign Currency Translation Pension and Postretirement Plans Total Balance at March 31, 2014 $ (1.7 ) $ 7.8 $ (29.9 ) $ (23.8 ) Other comprehensive 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 ) Other comprehensive income (loss) before reclassifications 1.1 (12.8 ) 9.2 (2.5 ) Amounts reclassified from accumulated other comprehensive loss 6.3 — (1.8 ) 4.5 Net current period other comprehensive income (loss) 7.4 (12.8 ) 7.4 2.0 Balance at March 31, 2017 $ (9.5 ) $ (99.3 ) $ (28.2 ) $ (137.0 ) The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the fiscal years ending March 31, 2017 , 2016 and 2015 (in millions): Pension and postretirement plans Year Ending March 31, 2017 Year Ending March 31, 2016 Year Ending March 31, 2015 Income Statement Line Item Amortization of prior service credit $ (1.9 ) $ (1.9 ) $ (1.7 ) Selling, general and administrative expenses Lump Sum Settlement — — 6.5 Actuarial (gain) loss on pension and postretirement benefit obligations Curtailment (1.0 ) — — Actuarial (gain) loss on pension and postretirement benefit obligations Provision (benefit) for income taxes 1.1 0.7 (1.9 ) Total, net of income taxes $ (1.8 ) $ (1.2 ) $ 2.9 Interest rate derivatives Net realized losses on interest rate hedges $ 10.2 $ — $ — Interest expense, net Benefit for income taxes (3.9 ) — — Total, net of income taxes $ 6.3 $ — $ — 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. For the derivative instruments designated and qualifying as effective hedging instruments under ASC 815, Accounting for Derivative Instruments and Hedging Activities ("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 of such instruments. 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. The Company periodically enters into foreign currency forward contracts to mitigate foreign currency volatility on certain intercompany and external cash flows expected to occur. See Note 12 Derivative Financial Instruments for additional information. Currency transaction losses are included in other expense (income), net in the consolidated statements of operations and totaled $3.7 million , $3.0 million and $1.5 million for the years ended March 31, 2017 , 2016 and 2015 , respectively. Advertising Costs Advertising costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred and amounted to $10.6 million , $9.2 million , and $10.4 million for the years ended March 31, 2017 , 2016 and 2015 , 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, 2017 , 2016 and 2015 amounted to the following (in millions): Year Ended March 31, 2017 Year Ended March 31, 2016 Year Ended March 31, 2015 Research and development costs $ 11.1 $ 12.4 $ 12.8 Engineering costs 27.2 24.8 26.0 Total $ 38.3 $ 37.2 $ 38.8 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 January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). The amendments in ASU 2017-04 allow companies to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 is effective for the beginning of the Company's fiscal 2021, with early adoption permitted, and must be applied prospectively. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In March 2016, the FASB issued 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. The Company elected to early adopt this standard in the first quarter of fiscal 2017 . The impact of the adoption of this standard resulted in the following: • The Company recorded a benefit of $7.6 million within income tax expense for the fiscal year ended March 31, 2017 , related to the net excess tax benefit on stock options, restricted stock units and performance stock units. Prior to adoption, these amounts would have been recorded as a reduction of additional paid-in capital. This change may create volatility in the Company's effective tax rate. • The Company properly no longer reclassifies the excess tax benefit from operating activities to financing activities in the consolidated statements of cash flows. The Company elected to apply this change prospectively and thus prior periods have not been adjusted. • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share for the fiscal year ended March 31, 2017 . This increased the diluted weighted average common shares outstanding by approximately 0.3 million shares. In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02''), which requires lessees to recognize lease assets and lease liabilities for all leases on the balance sheets. ASU 2016-02 is effective beginning for the Company's fiscal 2020 and interim periods included therein on a modified retrospective basis. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption. 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 2018, with early adoption permitted, and must be applied prospectively. The adoption of ASU 2015-11 is not expected to have an impact on the consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. The new guidance requires the service cost component of net periodic benefit cost to be presented in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period with only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be stated separately from the line item(s) that includes the service cost and outside of operating income. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is the Company's fiscal year 2019. The amendment is to be applied retrospectively. The Company has not yet evaluated the impact of adoption of this guidance will have on its consolidated financial statements. 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 an amount that reflects the consideration the company expects to be entitled to in exchange for the transfer of promised goods or services to customers. The guidance provides a five-step process that entities should follow in order to achieve that core principal. ASU 2014-09 will be effective for the Company on April 1, 2018. Companies can use either a full retrospective or modified retrospective method to adopt the standard. Under the full retrospective method, the requirements of the new standard are applied to contracts for each prior reporting period presented and the cumulative effective of applying the standard is recognized in the earliest period presented. Under the modified retrospective method, prior periods are not updated to be presented on an accounting basis that is consistent with information for fiscal 2019. Rather, a cumulative adjustment for the effects of applying the new standard to periods prior to fiscal 2019 is recorded to retained earnings as of April 1, 2018. The Company has not yet selected which approach to apply but is anticipating using the modified retrospective approach. The Company is assessing the impact of the new standard on its business by reviewing its current accounting policies and practices, including detailed reviews of customer contracts, to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company will provide additional disclosure as its ongoing assessment progresses. |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal Year 2017 On June 1, 2016, the Company acquired Cambridge International Holdings Corp. ("Cambridge") for a cash purchase price of $213.4 million . The purchase price consisted of an enterprise value of $210.0 million , excluding transaction costs and net of cash acquired, plus additional consideration of $3.4 million related to the acquisition of certain tax benefits and real property classified as held for sale at the acquisition date. Subsequently, during fiscal 2017 the Company received a cash payment of $0.7 million from the sellers in connection with finalizing the acquisition date trade working capital, which is reflected in the additional consideration above. Cambridge, with operations in Cambridge, Maryland and Matamoros, Mexico, is one of the world's largest suppliers of metal conveying and engineered woven metal solutions, primarily used in food processing end markets, as well as in architectural, packaging and filtration applications. The acquisition of Cambridge expanded the Company's presence in consumer-driven end markets in the Process & Motion Control platform. The Company's results of operations include the acquired operations subsequent to June 1, 2016. Pro-forma results of operations and certain other U.S. GAAP disclosures related to the Cambridge acquisition have not been presented because they are not material to the Company's consolidated statements of operations and consolidated balance sheet. The acquisition of Cambridge was accounted for as a business combination and recorded by allocating the purchase price to the fair value of assets acquired and liabilities assumed at the acquisition date. The excess of the acquisition purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill. Since the initial purchase price allocation, the Company increased goodwill by $3.1 million in connection with the establishment of income tax positions and the refinement of the fair value assigned to acquired fixed and intangible assets within the opening balance sheet, partially offset by the aforementioned payment received from the sellers in connection with finalizing the acquisition date trade working capital. After incorporating the changes described above, the purchase price allocation resulted in non-tax deductible goodwill of $129.4 million , other intangible assets of $80.6 million (includes tradenames of $16.8 million , customer relationships of $58.3 million and patents of $5.5 million ) and other net assets of $3.4 million . The purchase price allocation remains preliminary and subject to final valuation adjustments that will be completed within the one year period following the acquisition date. During fiscal 2017 the Company acquired the remaining non-controlling interest in a Water Management joint venture for a cash purchase price of approximately $0.3 million , net of cash acquired and excluding transaction costs. The acquisition of the remaining minority interest was not material to the Company's consolidated statements of operations or financial position. 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. During fiscal 2017 the Company paid $5.7 million to settle the aforementioned acquisition-related obligations. 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 fiscal year 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 . |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations There was no discontinued operations activity during fiscal 2017 . 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. Accordingly, the results of operations of the Mill Products business are reported as discontinued operations in the consolidated statements of operations. The consolidated statements of cash flows for the fiscal years ended March 31, 2016 and 2015 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 from discontinued operations, net of tax on the consolidated statements of operations (in millions): Year Ended March 31, 2016 March 31, 2015 Net sales $ — $ 34.1 Loss from operations before income taxes (2.2 ) (10.9 ) Benefit for income taxes (0.8 ) (2.9 ) Net loss from discontinued operations $ (1.4 ) $ (8.0 ) Net loss per share from discontinued operations: Basic $ (0.01 ) $ (0.08 ) Diluted $ (0.01 ) $ (0.08 ) 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. 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 remaining 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, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Similar Charges | Restructuring and Other Similar Charges During fiscal 2017 , 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, 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 or accelerated depreciation of assets, lease termination costs, and other facility rationalization costs. The Company's restructuring plans are preliminary and the full extent of 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, 2017 , 2016 and 2015 by classification of operating segment (in millions): Year Ended March 31, 2017 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 16.5 $ 6.2 $ — $ 22.7 Asset impairment charges (1) 1.5 — — 1.5 Contract termination and other associated costs (2) 5.4 2.0 — 7.4 Total restructuring and other similar costs $ 23.4 $ 8.2 $ — $ 31.6 Year Ended March 31, 2016 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 10.8 $ 4.2 $ 0.3 $ 15.3 Asset impairment charges (1) 1.0 16.5 — 17.5 Contract termination and other associated 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 Employee termination benefits $ 7.6 $ 3.3 $ — $ 10.9 Contract termination and other associated costs 1.2 0.8 — 2.0 Total restructuring and other similar costs $ 8.8 $ 4.1 $ — $ 12.9 Restructuring Costs To-date (Period from April 1, 2011 to March 31, 2017) Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 44.3 $ 19.8 $ 2.0 $ 66.1 Asset impairment charges 2.5 16.5 — 19.0 Contract termination and other associated costs 9.8 8.3 — 18.1 Total restructuring and other similar costs $ 56.6 $ 44.6 $ 2.0 $ 103.2 (1) In connection with the ongoing supply chain optimization and footprint repositioning initiatives, the Company has taken several actions to consolidate existing manufacturing facilities and rationalize its product offerings. These actions require the Company to assess whether the carrying amount of impacted long-lived assets will be recoverable as well as whether the remaining useful lives require adjustment. The Company recognized impairment charges associated with these assets during fiscal 2017 and 2016 , in the amount of $1.5 million and $17.5 million , respectively. The impairment was determined utilizing independent appraisals of the assets, classified as Level 3 inputs within the Fair Value hierarchy. Refer to Note 13 Fair Value Measurements for additional information. (2) During fiscal 2017 , the Company received a $1.0 million cash payment in connection with the sale of certain Rodney Hunt Fontaine ("RHF") related intellectual property, which was fully impaired during fiscal 2016 when the Company announced its decision to exit the RHF product line. A gain on the disposition of this intellectual property of $1.0 million was recognized during fiscal 2017 within the Water Management operating segment. The Company evaluated the requirements for 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. 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 Ended March 31, Pre-tax Loss Description 2017 $ (16.3 ) Includes other restructuring charges (primarily severance costs) of $3.8 million 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 The following table summarizes the activity in the Company's accrual for restructuring costs for the fiscal years ended March 31, 2017 and 2016 (in millions): Employee termination benefits Asset impairment charges Contract termination and other associated costs Total Accrued Restructuring Costs, March 31, 2015 $ 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 Charges 22.7 1.5 7.4 31.6 Cash payments (2) (20.0 ) — (6.7 ) (26.7 ) Non-cash charges (3) (2.2 ) (1.5 ) — (3.7 ) Accrued Restructuring Costs, March 31, 2017 (1) $ 11.0 $ — $ 1.0 $ 12.0 (1) The restructuring accrual is included in Other current liabilities on the consolidated balance sheets. (2) Includes the $1.0 million cash payment received in conjunction with the aforementioned disposition of RHF-related intellectual property. (3) Included in Employee termination benefits for the year ended March 31, 2017 is $2.2 million of contractual termination benefits recognized for enhanced benefits that will be provided to certain employees impacted by the ongoing supply chain optimization and footprint repositioning initiatives. Those amounts are recorded in the Pension and post-retirement benefit obligations within the consolidated balance sheets and are therefore excluded from the restructuring accrual. Refer to Note 16 Retirement Benefits for additional information. |
Recovery Under Continued Dumpin
Recovery Under Continued Dumping and Subsidy Offset Act ("CDSOA") | 12 Months Ended |
Mar. 31, 2017 | |
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 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 received a distribution of $8.4 million during fiscal 2016 from CBP, which was recorded within Other (expense) income, net on the consolidated statements of operations. The Company did no t receive any distributions in fiscal 2017 or 2015 . 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, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The major classes of inventories are summarized as follows (in millions): March 31, 2017 2016 Finished goods $ 139.9 $ 148.4 Work in progress 44.4 55.3 Purchased components 74.0 67.6 Raw materials 47.7 49.3 Inventories at First-in, First-Out ("FIFO") cost 306.0 320.6 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 8.9 6.6 $ 314.9 $ 327.2 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 Land $ 32.2 $ 31.2 Buildings and improvements 239.0 210.8 Machinery and equipment 391.0 401.0 Hardware and software 68.9 65.4 Construction in-progress 19.8 37.6 750.9 746.0 Less accumulated depreciation (350.0 ) (348.8 ) $ 400.9 $ 397.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the net carrying value of goodwill for the years ended March 31, 2017 and 2016 by operating segment, consisted of the following (in millions): Goodwill Process & Motion Control Water Management Consolidated Net carrying amount as of March 31, 2015 $ 949.9 $ 252.4 $ 1,202.3 Purchase price allocation adjustments (4.8 ) — (4.8 ) Currency translation adjustment and other (2.7 ) (1.0 ) (3.7 ) Net carrying amount as of March 31, 2016 $ 942.4 $ 251.4 $ 1,193.8 Acquisitions (1) 129.4 — 129.4 Currency translation adjustment and other (3.0 ) (2.0 ) (5.0 ) Net carrying amount as of March 31, 2017 $ 1,068.8 $ 249.4 $ 1,318.2 ______________________ (1) Refer to Note 3 for additional information regarding acquisitions. The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2017 and March 31, 2016 consisted of the following (in millions): March 31, 2017 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 47.0 $ (37.7 ) $ 9.3 Customer relationships (including distribution network) 13 years 685.8 (475.2 ) 210.6 Tradenames 12 years 29.5 (5.3 ) 24.2 Intangible assets not subject to amortization - trademarks and tradenames 314.5 — 314.5 Total intangible assets, net 13 years $ 1,076.8 $ (518.2 ) $ 558.6 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 Total intangible assets, net 12 years $ 998.1 $ (477.2 ) $ 520.9 Intangible asset amortization expense totaled $42.1 million , $57.4 million and $55.1 million for the years ended March 31, 2017 , 2016 and 2015 , respectively. Patents, tradenames, and customer relationships acquired during fiscal 2017 were assigned a weighted-average useful life of 10 years , 15 years , and 16 years , respectively. The Company expects to recognize amortization expense on the intangible assets subject to amortization of $32.2 million in fiscal year 2018, $32.0 million in fiscal year 2019, $31.8 million in fiscal year 2020, $30.4 million in fiscal year 2021, and $26.1 million in fiscal year 2022. During fiscal 2016, in connection with the exit of the RHF product line, the Company recognized $10.4 million , $0.3 million , and $0.2 million of impairment of indefinite-lived intangible assets, customer relationships and patents, respectively, Refer to Note 5 Restructuring and Other Similar Charges for additional information. During the third quarter of fiscal 2017 , 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, 2017 and 2016 was $323.4 million . |
Other Current Liabilities
Other Current Liabilities | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities are summarized as follows (in millions): March 31, 2017 March 31, 2016 Customer advances $ 10.9 $ 8.3 Sales rebates 25.5 28.2 Commissions 6.3 7.9 Restructuring and other similar charges (1) 12.0 10.8 Product warranty (2) 7.5 6.8 Risk management (3) 8.9 9.9 Legal and environmental 4.4 4.6 Taxes, other than income taxes 10.5 6.6 Income taxes payable 17.8 15.0 Interest payable 5.7 5.6 Other 17.9 20.7 $ 127.4 $ 124.4 ____________________ (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, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is summarized as follows (in millions): March 31, 2017 March 31, 2016 Term loans (1) $ 1,584.5 $ 1,881.0 Other subsidiary debt (2) 38.2 39.1 Total 1,622.7 1,920.1 Less current maturities 16.5 20.2 Long-term debt $ 1,606.2 $ 1,899.9 ____________________ (1) Includes an unamortized original issue discount and debt issuance costs of $17.9 million and $20.2 million at March 31, 2017 and March 31, 2016 , respectively. (2) Includes unamortized debt issuance costs of $0.5 million and $0.6 million at March 31, 2017 and March 31, 2016 , respectively. Senior Secured Credit Facility Term Debt During fiscal 2017, the Company entered into an Incremental Assumption Agreement (the “Term Debt Agreement”) with Credit Suisse AG, as administrative agent, and Credit Suisse AG, Cayman Islands Branch, as the refinancing term lender, relating to the Third Amended and Restated First Lien Credit Agreement, dated as of August 21, 2013 (the “Existing Agreement”). The Existing Agreement was funded by a syndicate of banks and other financial institutions and included a $1,950.0 million term loan facility (the “Prior Term Loan”). The Term Debt Agreement provided for a new term loan in the aggregate principal amount of $1,606.4 million (the “Term Refinancing Loan”). The proceeds were used to repay in full the then-outstanding aggregate principal amount of the Prior Term Loan. Prior to that repayment in fiscal 2017, the Company made two voluntary prepayments on the Prior Term Loan aggregating $290.0 million : $195.0 million in the third quarter of fiscal 2017, in connection with the issuance of Series A Preferred Stock (see Note 19 Public Offering and Common Stock Repurchases) and $95.0 million during the first quarter of fiscal 2017. In accordance with ASC 470-50, Debt Modifications and Extinguishment s (“ASC 470-50”) the Company recognized a $7.8 million loss on the debt extinguishment associated with the above transactions, which was comprised of $5.4 million of refinancing related costs, as well as a non-cash write-off of unamortized original issue discount and debt issuance costs associated with previously outstanding debt of $2.4 million . Additionally, the Company capitalized approximately $4.1 million of direct costs associated with the Term Refinancing Loan, which will be amortized over the life of the Term Refinancing Loan as interest expense using the effective interest method. The Term Refinancing Loan has a maturity date of August 21, 2023. The borrowings under the Term Refinancing Loan bear interest at either the London Interbank Offered Rate or LIBOR (subject to a 1.0% floor) plus an applicable margin of 2.75% (which was reduced from 3.0% ) or at an alternate base rate plus an applicable margin of 1.75% (which remained unchanged). The maturity date and interest rate with respect to the existing $265.0 million revolving credit facility under the Existing Agreement were unchanged by the Term Debt Agreement. At March 31, 2017 , the borrowings under the Term Refinancing Loan had a weighted-average effective interest rate of 3.88% , determined as LIBOR (subject to a 1.0% floor) plus an applicable margin of 2.75% . The weighted-average interest rate for the period that the Term Refinancing Loan has been in place through March 31, 2017 , was 3.77% determined as LIBOR (subject to a 1.0% floor) plus an applicable margin of 2.75% . As of March 31, 2017 , the remaining mandatory principal payments prior to maturity on the Term Refinancing Loan were $100.4 million . Principal payments of $4.0 million are scheduled to be made at the end of each calendar quarter until August 21, 2023, after which the entire term facility matures. As of March 31, 2017 , the Company was in compliance with all applicable covenants under its Term Refinancing Loan, including the maximum permitted total net leverage ratio (the Company's sole financial maintenance covenant under its revolving credit facility discussed below) of 6.75 to 1.0 . The Company's total net leverage ratio was 3.33 to 1.0 as of March 31, 2017 . Revolving Credit Facility The Existing Agreement also included a $265.0 million revolving credit facility. During fiscal 2017, the Company entered into an Incremental Assumption Agreement (the “Revolver Extension Agreement”) with Credit Suisse AG, as administrative agent, and with the other lenders party thereto relating to the Existing Agreement. The Revolver Extension Agreement amended the Existing Agreement to (i) reduce the applicable margin on both alternate base rate ("ABR") and Eurocurrency loans by 1.0% , (ii) extend the revolving facility maturity date to March 15, 2019, (iii) modify the financial covenant of the Existing Agreement by eliminating the springing nature of the covenant, and substituting a Total Net Leverage Ratio of 6.75 to 1.0 for the current Net First Lien Leverage Ratio of 7.75 to 1.0, and (iv) reduce the letter of credit availability from $80.0 million to $60.0 million (without reducing the overall availability under the Existing Agreement). The Company incurred approximately $2.2 million of transaction related costs in connection with the Revolver Extension Agreement, which will be recognized as interest expense over the remaining tenure of the amended facility. For revolving commitments, the Company's applicable margin above the base rate is 2.00% in the case of ABR borrowings and 3.00% in the case of Eurocurrency borrowings, subject to a net first lien leverage test. In the event the Company's net 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 3.33 to 1.0 as of March 31, 2017. In addition to paying interest on outstanding principal, 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. No amounts were borrowed under the revolving credit facility at March 31, 2017 or 2016 ; however, $14.6 million and $21.1 million of the revolving credit facility were considered utilized in connection with outstanding letters of credit at March 31, 2017 and 2016 , respectively. 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 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, 2017 and 2016 , the aggregate loans of $36.9 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, 2017 and 2016 , in addition to the aforementioned New Market Tax Credit, various wholly owned subsidiaries had additional debt of $1.4 million and $2.3 million , respectively, comprised primarily of 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 Wells Fargo & Company ("Wells Fargo"). (Terms of the Securitization remained comparable to the agreement prior to the Omnibus Amendment, except as set forth below.) Pursuant to the agreements evidencing the Securitization, Rexnord Funding LLC ("Rexnord Funding") (a wholly owned bankruptcy-remote special purpose subsidiary) has granted Wells Fargo 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 outstanding from time to time. Such borrowings are 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 Wells Fargo 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 constitutes 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 are 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 statements of operations if revolving loans or letters of credit are obtained under the facility. At March 31, 2017 , the Company's available borrowing capacity under the Securitization was $100.0 million , based on the current accounts receivables balance. No amounts were borrowed under the Securitization at March 31, 2017 and 2016 ; however, $4.6 million and zero was considered utilized in connection with outstanding letters of credit at March 31, 2017 and 2016 , respectively. As of March 31, 2017 , 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, 2017 , excluding the unamortized original issue discount and debt issuance costs of $18.4 million , were as follows (in millions): Years ending March 31: 2018 $ 16.5 2019 16.4 2020 30.3 2021 16.4 2022 16.1 Thereafter 1,545.4 $ 1,641.1 Cash interest paid for the fiscal years ended March 31, 2017 , 2016 and 2015 was $84.9 million , $87.7 million , and $84.1 million , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to certain financial risks relating to fluctuations in foreign currency exchange rates. The Company currently selectively uses foreign currency forward exchange contracts to manage its foreign currency risk. All hedging transactions are authorized and executed pursuant to defined policies and procedures that prohibit the use of financial instruments for speculative purposes. Foreign Exchange Contracts The Company periodically enters into foreign currency forward contracts to mitigate the foreign currency volatility relative to certain intercompany cash flows expected to occur. These foreign currency forward contracts were not accounted for as 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 The Company utilizes three interest rate swaps to hedge the variability in future cash flows associated with a portion of the Company’s variable-rate term loans. The interest rate swaps, which became effective on September 28, 2015, 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 1.0% LIBOR floor). The interest rate swaps have been designated as cash flow hedges in accordance with ASC 815 and will mature on September 27, 2018. In addition, the Company utilizes two interest rate caps to further mitigate the Company's exposure to increasing interest rates on its variable-rate interest loans. Those interest rate caps were effective beginning 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 3.0% , 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 cash flow hedges in accordance with ASC 815. When combined with the Company's existing interest rate swaps, the Company has hedged approximately 87% of its outstanding variable rate term loans with a weighted average interest rate that cannot exceed 2.79% plus the applicable margin of 2.75% . 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, Fair Value Measurements and Disclosure (“ASC 820”). See Note 13 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. Fair value of derivatives designated as hedging instruments under ASC 815 (in millions): March 31, 2017 March 31, 2016 Balance Sheet Classification Liability Derivatives Interest rate swaps $ 10.3 $ 21.8 Other liabilities Asset Derivatives Interest rate caps $ — $ 0.3 Other assets Fair value of derivatives not designated as hedging instruments under ASC 815 (in millions): March 31, 2017 March 31, 2016 Balance Sheet Classification Liability Derivatives Foreign currency forward contracts $ 0.1 $ 0.9 Other current liabilities 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, 2017 , 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, 2017 March 31, 2016 Interest rate swaps $ 6.4 $ 13.5 Interest rate caps $ 3.1 $ 3.4 Amount recognized in other (expense) income, net Derivative instruments not designated as hedging instruments under ASC 815 Location of gain recognized in income on derivatives Year Ended March 31, 2017 March 31, 2016 March 31, 2015 Foreign currency forward contracts Other (expense) income, net $ 0.3 $ — $ 0.5 During fiscal 2017 and 2016 , the Company reclassified $10.2 million and $5.2 million of accumulated other comprehensive loss into earnings as interest expense related to interest rate derivatives, respectively. The Company did no t reclassify any amounts from other comprehensive loss into earnings as interest expense during fiscal year 2015. The Company expects to reclassify $10.3 million of accumulated other comprehensive loss into earnings as interest expense during the next twelve months. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017 and March 31, 2016 . 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, 2017 and March 31, 2016 (in millions): Fair Value as of March 31, 2017 Level 1 Level 2 Level 3 Total Assets: Interest rate caps $ — $ 0.0 $ — $ 0.0 Total assets at fair value — 0.0 — 0.0 Liabilities: Interest rate swaps — 10.3 — 10.3 Foreign currency forward contracts — 0.1 — 0.1 Total liabilities at fair value $ — $ 10.4 $ — $ 10.4 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 of Non-Derivative Financial Instruments The carrying amounts of cash, receivables, payables and accrued liabilities approximated fair value at March 31, 2017 and March 31, 2016 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, 2017 and March 31, 2016 was approximately $1,644.6 million and $1,913.2 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 discussed in Note 5 Restructuring and Other Similar Charges, during fiscal 2017 and 2016 , the Company impaired certain property, plant and equipment associated with the Company's supply chain optimization and footprint optimization actions. 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, 2017 and 2016 , these assets have a net realizable value of $7.0 million and $5.3 million , respectively. During fiscal 2017 , the Company sold approximately $3.4 million of these assets upon completion of the remaining backlog associated with the Rodney Hunt Fontaine flow control gate product line. |
Leases
Leases | 12 Months Ended |
Mar. 31, 2017 | |
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 $20.7 million , $18.2 million and $19.4 million for the fiscal years ended March 31, 2017 , 2016 and 2015 , respectively. Future minimum rental payments for operating leases with initial terms in excess of one year as of March 31, 2017 are as follows (in millions): Years ending March 31: 2018 $ 17.5 2019 14.7 2020 12.8 2021 7.4 2022 6.7 Thereafter 18.2 $ 77.3 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2017 | |
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 "Prior Plan"), under which the Company could issue stock options. No further options may be granted under the Prior Plan. In fiscal 2012, the Board of Directors adopted, and stockholders approved, the Rexnord Corporation Performance Incentive Plan (the "Plan" and together with the Prior Plan, the "Incentive Plans"), which operates as a successor plan to the Prior Plan. The Plan, as amended and restated effective May 18, 2016 following subsequent stockholder approval, is utilized to provide performance incentives to the Company's officers, employees, directors and certain others by permitting grants of equity awards (for common stock), as well as performance-based cash awards, to such persons, to encourage them to maximize Rexnord's performance and create value for Rexnord's stockholders. 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 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 generally vest ratably over 3 years. PSUs granted in fiscal 2017 and 2016 cliff vest after 3 years. The Plan permits the grant of awards that may deliver up to an aggregate of 12,150,000 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 that are performance-based awards within the meaning of Section 162(m) of the Internal Revenue Code, to any individual in a single year. The Plan is administered by the Compensation Committee. During fiscal 2017 , 2016 and 2015 , the Company recorded $13.4 million , $7.5 million and $6.4 million of stock-based compensation expense, respectively (the related tax benefit on these amounts was $4.7 million for fiscal 2017 , $2.8 million for fiscal 2016 , and $2.2 million for fiscal 2015 ). During fiscal 2017 , 2016 and 2015 , the Company also recorded $8.3 million , $4.0 million and $5.8 million , respectively, of an excess tax benefit related to stock options exercised during each fiscal year. See Note 2 regarding the change in accounting for excess tax benefits in fiscal 2017. As of March 31, 2017 , there was $25.9 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.93 years. 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: Years Ended March 31, 2017 March 31, 2016 March 31, 2015 Expected option term (in years) 6.5 6.5 7.1 Expected volatility factor 29 % 24 % 26 % Weighted-average risk free interest rate 1.58 % 1.82 % 2.10 % Expected dividend rate 0.0 % 0.0 % 0.0 % 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 have 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 2017 , 2016 and 2015 was $6.41 , $6.92 and $9.21 , respectively. The total fair value of options vested during fiscal 2017 , 2016 and 2015 was $5.8 million , $9.8 million and $1.3 million , respectively. A summary of stock option activity during fiscal 2017, 2016 and 2015 is as follows: Years Ended March 31, 2017 March 31, 2016 March 31, 2015 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 7,854,685 $ 15.10 8,588,518 $ 13.04 8,652,834 $ 10.79 Granted 2,602,014 19.72 1,072,556 24.14 1,268,124 28.30 Exercised (1) (2,116,571 ) 5.18 (1,278,017 ) 5.55 (743,807 ) 5.85 Canceled/Forfeited (569,458 ) 23.34 (528,372 ) 23.53 (588,633 ) 21.65 Outstanding at end of period (2) 7,770,670 $ 18.73 7,854,685 $ 15.10 8,588,518 $ 13.04 Exercisable at end of period (3) 3,221,622 $ 15.25 4,678,216 $ 9.52 4,798,457 $ 5.67 ______________________ (1) The total intrinsic value of options exercised during fiscal 2017 , 2016 and 2015 was $29.1 million , $16.3 million and $16.7 million , respectively. (2) The weighted average remaining contractual life of options outstanding was 6.6 years at March 31, 2017 , 5.0 years at March 31, 2016 and 5.0 years at March 31, 2015 . The aggregate intrinsic value of options outstanding at March 31, 2017 was $40.3 million . (3) The weighted average remaining contractual life of options exercisable was 4.6 years at March 31, 2017 , 3.0 years at March 31, 2016 and 2.6 years at March 31, 2015 . The aggregate intrinsic value of options exercisable at March 31, 2017 was $27.9 million . Shares Weighted Avg. Exercise Price Nonvested options at beginning of period 3,176,469 $ 23.30 Granted 2,602,014 19.72 Vested (749,416 ) 23.69 Canceled/Forfeited (480,019 ) 23.14 Nonvested options at end of period 4,549,048 $ 21.20 Restricted Stock Units During fiscal 2017 , 2016 and 2015 the Company granted restricted stock units ("RSUs") to certain of its officers, directors, and employees. 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 fiscal 2017 , 2016 , and 2015 is as follows: Years Ended March 31, 2017 March 31, 2016 March 31, 2015 Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Nonvested RSUs at beginning of period 125,307 $ 24.67 53,813 $ 29.06 — $ — Granted 279,445 19.53 96,952 23.20 58,883 29.08 Vested (48,207 ) 24.01 (12,866 ) 29.09 — — Canceled/Forfeited (34,403 ) 22.00 (12,592 ) 27.62 (5,070 ) 29.31 Nonvested RSUs at end of period 322,142 $ 20.59 125,307 $ 24.67 53,813 $ 29.06 Performance Stock Units During fiscal 2017 and 2016 , the Company granted performance stock units (“PSUs”) to certain of its officers and employees. Those PSUs have a three -year performance period, and are earned and vest, subject to continued employment, based in part on performance relative to metrics determined by the Compensation Committee. 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. A summary of PSU activity during fiscal 2017 and 2016 is as follows: Years Ended March 31, 2017 March 31, 2016 Shares Weighted Avg. Grant Date Fair Value Shares Weighted Avg. Grant Date Fair Value Nonvested PSUs at beginning of period 49,136 $ 28.57 — $ — Granted 219,266 23.95 50,711 28.57 Vested — — — — Canceled/Forfeited (8,472 ) 25.90 (1,575 ) — Nonvested PSUs at end of period 259,930 $ 24.74 49,136 $ 28.57 The fair value of the portion of current 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 of current PSUs with vesting based on relative total shareholder return 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 fiscal 2017 and 2016: Years Ended March 31, 2017 March 31, 2016 Expected volatility factor 30 % 31 % Weighted-average risk-free interest rate 0.86 % 1.01 % Expected dividend rate 0.0 % 0.0 % PSU fair value per share $27.67 $32.06 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Mar. 31, 2017 | |
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 sponsors frozen pension plans for certain 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 Company recognizes the net actuarial gains or losses in excess of the corridor in operating results during the fourth quarter of each fiscal year (or upon any required re-measurement event). The corridor is 10% of the greater of the projected benefit obligation or the fair value of the plan assets. In connection with this accounting policy, the Company recognized non-cash actuarial (gains) / losses of $(2.6) million , $12.9 million , and $59.4 million , during the fiscal years ending March 31, 2017 , 2016 and 2015 , respectively. 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. The components of net periodic benefit cost reported in the consolidated statements of operations are as follows (in millions): Year Ended March 31, 2017 March 31, 2016 March 31, 2015 Pension Benefits: Service cost $ 1.8 $ 2.2 $ 1.4 Interest cost 25.7 25.5 30.0 Expected return on plan assets (27.1 ) (28.8 ) (29.8 ) Amortization of: Prior service cost 0.1 0.1 0.2 (Income) cost associated with special events: Settlement (1) — — 6.5 Curtailment (2) (1.4 ) — — Contractual termination benefits (3) 2.2 — — Recognition of actuarial losses — 13.0 51.7 Net periodic benefit cost $ 1.3 $ 12.0 $ 60.0 Other Postretirement Benefits: Service cost $ 0.1 $ 0.1 $ 0.1 Interest cost 1.1 1.2 1.3 Amortization: Prior service credit (2.0 ) (2.0 ) (1.9 ) Cost associated with special events: Curtailment (2) 0.4 — — Recognition of actuarial (gains) losses (1.6 ) (0.1 ) 1.2 Net periodic benefit (income) cost $ (2.0 ) $ (0.8 ) $ 0.7 (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 . (2) During fiscal 2017, certain active participants of a foreign pension plan were transferred out of the pension plan and placed into a defined contribution plan, resulting in a curtailment gain of $1.4 million . In addition, the Company also recognized a curtailment loss of $0.4 million during fiscal 2017 as a result of the decision to close a U.S. manufacturing facility in connection with the Company’s ongoing supply chain optimization and footprint repositioning initiatives. See Note 5 Restructuring and Other Similar Charges for additional information. The recognition of the non-cash net curtailment gain of $1.0 million is recorded within Actuarial (gain) loss on pension and postretirement benefit obligations on the fiscal 2017 consolidated statements of operations. (3) During fiscal 2017, the Company recognized incremental expense of $2.2 million of termination benefits associated with incremental benefits participants of the Company’s domestic union defined benefit plans will receive following the Company’s decision to close one of its U.S. manufacturing facilities. The contractual termination benefit is recorded in Restructuring and other similar charges on the fiscal 2017 consolidated statements of operations. In fiscal 2017, the recognition of $2.6 million of non-cash actuarial gains was primarily associated with the net curtailment gain described above and improved demographic and claims experience associated with the Company’s other postretirement benefit plans. 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 RP 2014 mortality tables and MP 2014 mortality improvement scale 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 Company made contributions to its U.S. qualified pension plan trusts of $4.9 million , $4.9 million , and $7.9 million during the years ended March 31, 2017 , 2016 and 2015 , respectively. The status of the plans are summarized as follows (in millions): Pension Benefits Other Postretirement Benefits Year Ended March 31, 2017 Year Ended March 31, 2016 Year Ended March 31, 2017 Year Ended March 31, 2016 Benefit obligation at beginning of period $ (674.0 ) $ (718.8 ) $ (29.6 ) $ (32.4 ) Service cost (1.8 ) (2.2 ) (0.1 ) (0.1 ) Interest cost (25.7 ) (25.5 ) (1.1 ) (1.2 ) Actuarial gains 11.8 35.1 3.7 0.7 Benefits paid 39.8 38.8 3.1 4.0 Plan participant contributions (0.3 ) (0.4 ) (0.6 ) (0.6 ) Acquisition (1) (18.3 ) — — — Contractual termination benefits (2) (2.2 ) — — — Curtailments 2.5 — (1.1 ) — Translation adjustment 2.8 (1.0 ) — — Benefit obligation at end of period $ (665.4 ) $ (674.0 ) $ (25.7 ) $ (29.6 ) Plan assets at the beginning of the period $ 503.6 $ 543.2 $ — $ — Actual return on plan assets 26.6 (9.5 ) — — Contributions 8.6 8.6 3.1 4.0 Benefits paid (39.8 ) (38.8 ) (3.1 ) (4.0 ) Acquisition (1) 14.9 — — — Translation adjustment (0.9 ) 0.1 — — Plan assets at end of period $ 513.0 $ 503.6 $ — $ — Funded status of plans $ (152.4 ) $ (170.4 ) $ (25.7 ) $ (29.6 ) Net amount on Consolidated Balance Sheets consists of: Non-current assets $ 0.6 $ 0.5 $ — $ — Current liabilities (2.2 ) (2.4 ) (2.1 ) (2.6 ) Long-term liabilities (150.8 ) (168.5 ) (23.6 ) (27.0 ) Total net funded status $ (152.4 ) $ (170.4 ) $ (25.7 ) $ (29.6 ) (1) In fiscal 2017, Rexnord acquired Cambridge. See Note 3 Acquisitions for additional information. (2) During fiscal 2017 Rexnord recognized $2.2 million in special termination benefits associated with the closure of one of its U.S. manufacturing facilities. This expense was recognized as restructuring. As of March 31, 2017 , the Company had pension plans with a combined projected benefit obligation of $665.4 million compared to plan assets of $513.0 million , resulting in an under-funded status of $152.4 million compared to an under-funded status of $170.4 million at March 31, 2016 . 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, 2017 and 2016 consist of the following (in millions): As of March 31, 2017 Pension Benefits Postretirement Benefits Total Unrecognized prior service credit $ (0.1 ) $ (3.1 ) $ (3.2 ) Unrecognized actuarial loss (gain) 49.4 (0.8 ) 48.6 Accumulated other comprehensive loss (income), gross 49.3 (3.9 ) 45.4 Deferred income tax (benefit) provision (18.7 ) 1.5 (17.2 ) Accumulated other comprehensive loss (income), net $ 30.6 $ (2.4 ) $ 28.2 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 The Company expects to recognize $0.1 million and $1.9 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, 2017 March 31, 2016 March 31, 2015 March 31, 2017 March 31, 2016 March 31, 2015 Benefit Obligations: Discount rate 3.85 % 3.84 % 3.70 % 4.00 % 3.90 % 3.80 % Rate of compensation increase 2.96 % 3.07 % 3.40 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.84 % 3.70 % 4.54 % 3.90 % 3.80 % 4.30 % Rate of compensation increase 2.96 % 3.40 % 3.41 % n/a n/a n/a Expected return on plan assets 5.34 % 5.33 % 5.30 % 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, 2017 and actual investment allocations at March 31, 2017 and 2016 . Plan Assets 2017 2016 Investment Policy (1) Target Allocation (2) Actual Allocation Actual Allocation Equity securities 20 - 30% 29 % 30 % 28 % Debt securities (including cash and cash equivalents) 55 - 80% 66 % 64 % 66 % Other 0 - 10% 5 % 6 % 6 % (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, 2017 and 2016 , 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, 2017 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured at net asset value (1) Total Cash and cash equivalents $ 2.0 $ — $ — $ 4.5 $ 6.5 Investment funds Fixed income funds (2) 8.8 — — 317.5 326.3 U.S. equity funds (3) 3.7 — — 65.2 68.9 International equity funds (3) 2.0 — — 38.5 40.5 Balanced funds (3) — — — 9.3 9.3 Alternative investment funds (4) — — — 37.6 37.6 Insurance contracts — — 23.9 — 23.9 Total $ 16.5 $ — $ 23.9 $ 472.6 513.0 As of March 31, 2016 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured at net asset value (1) Total Cash and cash equivalents $ 1.7 $ — $ — $ 4.9 $ 6.6 Investment funds Fixed income funds (2) — — — 328.8 328.8 U.S. equity funds (3) — — — 63.7 63.7 International equity funds (3) — — — 35.3 35.3 Balanced funds (3) 9.1 9.1 Alternative investment funds (4) — — — 37.5 37.5 Insurance contracts — — 22.6 — 22.6 Total $ 1.7 $ — $ 22.6 $ 479.3 503.6 (1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (2) 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 primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. In fiscal 2017, Rexnord acquired Cambridge which sponsored pension plans that held exchange-traded funds that are valued using quoted market prices from active markets. (3) 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 primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. In fiscal 2017, Rexnord acquired Cambridge which sponsored pension plans that held exchange-traded funds that are valued using quoted market prices from active markets. (4) 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 Company is generally able to redeem investments at periodic times during the year with notice provided to the general partner. The table below sets forth a summary of changes in the fair value of the Level 3 investments for the years ended March 31, 2017 and 2016 (in millions): Insurance Contracts Beginning balance, March 31, 2015 $ 23.4 Actual return on assets: Related to assets held at reporting date (0.8 ) Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, March 31, 2016 22.6 Actual return on assets: Related to assets held at reporting date 1.3 Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, March 31, 2017 $ 23.9 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 2018 $ 41.3 $ 2.2 2019 41.3 2.6 2020 41.0 2.6 2021 41.0 2.5 2022 40.9 2.3 2023-2027 201.7 8.3 Pension Plans That Are Not Fully Funded At March 31, 2017 , 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 $658.9 million , $652.2 million and $506.1 million , respectively. 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. Other Postretirement Benefits The other postretirement benefit obligation was determined using an assumed health care cost trend rate of 6.8% in fiscal 2017 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, 2017 2016 2015 2017 2016 2015 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 2.1 2.6 2.9 (1.8 ) (2.2 ) (2.5 ) 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 $0.2 million in the years ended March 31, 2017 , 2016 and 2015 , respectively. Defined Contribution Savings Plans The Company sponsors certain defined-contribution savings plans for eligible employees. Expense recognized related to these plans was $12.4 million , $14.2 million , and $15.2 million for the years ended March 31, 2017 , 2016 and 2015 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
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 The components of the provision for income taxes are as follows (in millions): Year ended March 31, 2017 2016 2015 Current: United States $ 12.1 $ 24.0 $ 17.2 Non-United States 20.3 15.3 15.6 State and local 2.2 3.9 4.7 Total current 34.6 43.2 37.5 Deferred: United States (18.0 ) (10.2 ) (8.2 ) Non-United States (6.8 ) 1.1 (10.5 ) State and local (1.9 ) (17.0 ) (2.0 ) Total deferred (26.7 ) (26.1 ) (20.7 ) Provision for income taxes $ 7.9 $ 17.1 $ 16.8 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, 2017 2016 2015 Provision for income taxes at U.S. federal statutory income tax rate $ 28.7 $ 30.1 $ 37.9 State and local income taxes, net of federal benefit 0.8 2.7 2.6 Net effects of foreign rate differential (1.3 ) (3.0 ) (3.3 ) Net effects of foreign operations (4.4 ) (2.1 ) 8.9 Net effect to deferred taxes for changes in tax rates (0.3 ) (0.8 ) 0.2 Unrecognized tax benefits, net of federal benefit 0.5 (11.3 ) (0.5 ) Domestic production activities deduction (2.7 ) (1.3 ) (2.3 ) Research and development credit (7.6 ) — — Excess tax benefits related to equity compensation (7.0 ) — — Change in valuation allowance 0.5 2.3 (27.4 ) Other 0.7 0.5 0.7 Provision for income taxes $ 7.9 $ 17.1 $ 16.8 The provision for income taxes was calculated based upon the following components of income from continuing operations before income taxes (in millions): Year ended March 31, 2017 2016 2015 United States $ 50.4 $ 45.3 $ 89.9 Non-United States 31.6 40.7 18.7 Income before income taxes $ 82.0 $ 86.0 $ 108.6 Deferred Income Tax Assets and Liabilities Deferred income taxes consist of the tax effects of the following temporary differences (in millions): March 31, 2017 March 31, 2016 Deferred tax assets: Compensation and retirement benefits $ 79.9 $ 84.4 General accruals and reserves 18.1 18.3 State tax net operating loss carryforwards 19.2 19.6 Foreign tax credit carryforwards — 4.3 Foreign net operating loss and interest carryforwards 22.5 17.7 Other 7.9 14.5 Total deferred tax assets before valuation allowance 147.6 158.8 Valuation allowance (27.7 ) (27.2 ) Total deferred tax assets 119.9 131.6 Deferred tax liabilities: Property, plant and equipment 39.9 42.8 Inventories 31.5 30.1 Intangible assets and goodwill 217.5 197.7 Cancellation of indebtedness 27.6 43.4 Total deferred tax liabilities 316.5 314.0 Net deferred tax liabilities $ 196.6 $ 182.4 Net amount on Consolidated Balance Sheet consists of: Other assets $ 12.2 $ 3.6 Deferred income taxes (208.8 ) (186.0 ) Net long-term deferred tax liabilities $ (196.6 ) $ (182.4 ) 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, 2017. 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, 2016 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 an increase in certain foreign NOL carryforwards and other related deferred tax assets which management has deemed the realization of such assets as not being 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, 2017 , the Company had approximately $500.9 million of state NOL carryforwards, expiring over various years ending through March 31, 2036. The Company has a valuation allowance of $18.0 million recorded against the related deferred tax asset. In addition, at March 31, 2017 , the Company had approximately $94.8 million of foreign NOL carryforwards in which the majority of these losses can be carried forward indefinitely. There exists a valuation allowance of $9.7 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 $176.5 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 $5.7 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, 2017 and 2016 was $6.9 million and $13.3 million , respectively. This net amount was presented in the consolidated balance sheets as Income taxes payable (separately disclosed in Other current liabilities) of $17.8 million and $15.0 million as of March 31, 2017 and 2016 , respectively; and as Income taxes receivable (included in Other current assets) of $10.9 million and $1.7 million as of March 31, 2017 and 2016 , respectively. Net cash paid for income taxes to governmental tax authorities for the years ended March 31, 2017 , 2016 and 2015 was $40.0 million , $46.9 million and $21.2 million , respectively. Liability for Unrecognized Tax Benefits The Company's total liability for net unrecognized tax benefits as of March 31, 2017 and March 31, 2016 was $18.1 million and $15.6 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, 2017 and March 31, 2016 (in millions): Year Ended March 31, 2017 2016 Balance at beginning of period $ 13.2 $ 21.7 Additions based on tax positions related to the current year 0.8 0.8 Additions for tax positions of prior years 2.8 1.2 Reductions for tax positions of prior years — (0.1 ) Reductions due to lapse of applicable statute of limitations (1.7 ) (10.3 ) Cumulative translation adjustment (0.1 ) (0.1 ) Balance at end of period $ 15.0 $ 13.2 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of March 31, 2017 and March 31, 2016 , the total amount of unrecognized tax benefits includes $4.7 million and $3.8 million of gross accrued interest and penalties, respectively. The amount of interest and penalties recorded as income tax expense (benefit) during the fiscal years ended March 31, 2017 , 2016 , and 2015 was $0.6 million , $(8.6) million , and $0.7 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. Currently, 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 corporate income tax returns of the Company’s Netherlands subsidiaries for the tax years ended March 31, 2011 through 2015). In addition, the U.S. Internal Revenue Service is currently examining the Company’s U.S. consolidated federal income tax return and related amended return for the tax year ended March 31, 2015. During fiscal 2017, the Company completed an examination of certain of its Italian subsidiaries’ corporate income tax returns for the tax years ended March 31, 2014 through 2016 and paid approximately $0.7 million upon the conclusion of such examination. In addition, during fiscal 2017, the Company completed an examination of certain of its German subsidiaries’ corporate income and trade tax returns for the tax years ended March 31, 2011 through 2014 and paid approximately $0.4 million upon conclusion of such examination. During 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, 2014, state and local income tax examinations for years ending prior to fiscal 2013 or significant foreign income tax examinations for years ending prior to fiscal 2012. 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 the change in control when Apollo Management, L.P. acquired the Company) and the tax years ended March 31, 2008 through March 31, 2013 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, 2017 | |
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, Invensys plc ("Invensys") 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 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, 2017 , Zurn and numerous other unrelated companies were defendants in approximately 7,000 asbestos related lawsuits representing approximately 18,000 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, 2017 , the Company estimates the potential liability for the asbestos-related claims described above as well as the claims expected to be filed in the next ten years to be approximately $37.0 million of which Zurn expects its insurance carriers to pay approximately $28.0 million in the next ten years on such claims, with the balance of the estimated liability being paid in subsequent years. The $37.0 million was developed based on actuarial studies and represents the projected indemnity payout for current and future claims and increased by $5.0 million from March 31, 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. The liability for the asbestos-related claims is recorded in Other liabilities within the consolidated balance sheets. Management estimates that its available insurance to cover this potential asbestos liability as of March 31, 2017 , is approximately $242.9 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 $166.9 million of aggregate liabilities. As of March 31, 2017 , the Company had a recorded receivable from its insurance carriers of $37.0 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 $242.9 million of insurance coverage will ultimately be available or that this asbestos liability will not ultimately exceed $242.9 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. The receivable for probable asbestos-related recoveries is recorded in Other assets within the consolidated balance sheets. 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 a court-approved agreement 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 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. 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. |
Public Offering and Common Stoc
Public Offering and Common Stock Repurchases | 12 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Public Offering and Common Stock Repurchases | Public Offering and Common Stock Repurchases Preferred Stock On December 7, 2016, the Company issued 8,050,000 depositary shares, each of which represents a 1/20th interest in a share of 5.75% Series A Mandatory Convertible Preferred Stock (the "Series A Preferred Stock"), for an offering price of $50 per depository share. The Company issued an aggregate of 402,500 shares of Series A Preferred Stock in connection therewith. Unless converted earlier, each share of Series A Preferred Stock will convert automatically on the mandatory conversion date, which is November 15, 2019, into between 39.7020 and 47.6420 shares of the Company’s common stock, subject to customary anti-dilution adjustments. The number of shares of common stock issuable upon conversion will be determined based on a defined average volume weighted average price per share of the Company’s common stock preceding November 15, 2019. Holders of the Series A Preferred Stock may elect on a voluntary basis to convert their shares into common stock at the minimum exchange ratio at any time prior to the mandatory conversion date. Dividends accumulate from the issuance date. Rexnord may pay such dividends in cash or, subject to certain limitations, by delivery of shares of the Company's common stock or through any combination of cash and shares of the Company's common stock as determined by the Company in its sole discretion. Dividends are payable quarterly, commencing on February 15, 2017 and ending on November 15, 2019. Any unpaid dividends will continue to accumulate. The shares of Series A Preferred Stock have a liquidation preference of $1,000 per share, plus accrued dividends. With respect to dividend and liquidation rights, the Series A Preferred Stock ranks senior to the Company's common stock and junior to all existing and future indebtedness. The net proceeds from the offering were approximately $389.7 million . The Company used $195.0 million of the proceeds to prepay a portion of the then-outstanding term loan indebtedness under its credit agreement, with the remainder retained for general corporate purposes. During fiscal 2017 the Company accrued $7.3 million of dividends and has paid $4.4 million in cash related to these dividends. As of March 31, 2017 , there were no dividends in arrears on the Series A Preferred Stock. Issuer Repurchases of Equity Securities During fiscal 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. No shares of common stock were repurchased in fiscal 2017 or 2015. 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. At March 31, 2017 , approximately $160.0 million of repurchase authority remained. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Mar. 31, 2017 | |
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, Link-Belt and Cambridge. 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 Significant Accounting Policies). Business Segment Information: (in Millions) Year Ended March 31, 2017 March 31, 2016 March 31, 2015 Net sales by product Process & Motion Control: Original equipment manufacturers/ end-users $ 594.6 $ 572.3 $ 642.1 Maintenance, repair, and operations 540.1 528.0 588.1 Total Process & Motion Control 1,134.7 1,100.3 1,230.2 Water Management: Water safety, quality, flow control and conservation 538.9 534.1 517.1 Water infrastructure 244.6 289.4 302.9 Total Water Management 783.5 823.5 820.0 Consolidated net sales 1,918.2 1,923.8 2,050.2 Income (loss) from operations Process & Motion Control 134.9 146.8 219.6 Water Management 85.1 72.8 79.0 Corporate (36.3 ) (45.3 ) (94.9 ) Consolidated income from operations 183.7 174.3 203.7 Non-operating expense: Interest expense, net (88.7 ) (91.4 ) (87.9 ) Loss on the extinguishment of debt (7.8 ) — — Other (expense) income, net (5.2 ) 3.1 (7.2 ) Income from continuing operations before income taxes 82.0 86.0 108.6 Provision for income taxes 7.9 17.1 16.8 Net income from continuing operations 74.1 68.9 91.8 Loss from discontinued operations, net of tax — (1.4 ) (8.0 ) Net income 74.1 67.5 83.8 Non-controlling interest loss — (0.4 ) — Net income attributable to Rexnord 74.1 67.9 83.8 Dividends on preferred stock (7.3 ) — — Net income attributable to Rexnord common stockholders $ 66.8 $ 67.9 $ 83.8 Depreciation and Amortization Process & Motion Control $ 69.9 $ 77.3 $ 74.1 Water Management 35.5 38.1 38.1 Consolidated $ 105.4 $ 115.4 $ 112.2 Capital Expenditures Process & Motion Control $ 42.0 $ 43.6 $ 37.7 Water Management 12.5 8.5 11.1 Consolidated $ 54.5 $ 52.1 $ 48.8 March 31, 2017 March 31, 2016 March 31, 2015 Total Assets Process & Motion Control $ 2,671.4 $ 2,412.7 $ 2,419.0 Water Management 862.3 933.2 981.9 Corporate 5.6 8.9 8.4 Consolidated $ 3,539.3 $ 3,354.8 $ 3,409.3 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, 2017 Year Ended March 31, 2016 Year Ended March 31, 2015 March 31, 2017 March 31, 2016 March 31, 2015 United States $ 1,320.3 $ 1,306.9 $ 1,380.0 $ 267.2 $ 276.0 $ 279.4 Europe 332.6 370.8 374.0 72.2 80.5 92.1 Rest of World 265.3 246.1 296.2 61.5 40.7 46.1 $ 1,918.2 $ 1,923.8 $ 2,050.2 $ 400.9 $ 397.2 $ 417.6 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, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) (in millions, except per share amounts) Fiscal 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales $ 471.8 $ 491.0 $ 451.8 $ 503.6 $ 1,918.2 Gross profit 165.4 174.0 153.0 175.6 668.0 Net income attributable to Rexnord 18.9 24.6 3.2 27.4 74.1 Dividends on preferred stock — — (1.5 ) (5.8 ) (7.3 ) Net income attributable to Rexnord common stockholders $ 18.9 $ 24.6 $ 1.7 $ 21.6 $ 66.8 Net income per share attributable to Rexnord common stockholders Basic $ 0.19 $ 0.24 $ 0.02 $ 0.21 $ 0.65 Diluted $ 0.18 $ 0.24 $ 0.02 $ 0.21 $ 0.64 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 common stockholders $ 21.3 $ 22.6 $ 24.4 $ (0.4 ) $ 67.9 Basic net income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.21 $ 0.23 $ 0.24 $ 0.01 $ 0.69 Discontinued operations $ — $ — $ — $ (0.01 ) $ (0.01 ) Net income $ 0.21 $ 0.23 $ 0.24 $ (0.00 ) $ 0.67 Diluted income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.20 $ 0.22 $ 0.24 $ 0.01 $ 0.67 Discontinued operations $ — $ — $ — $ (0.01 ) $ (0.01 ) Net income $ 0.20 $ 0.22 $ 0.24 $ (0.00 ) $ 0.66 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Mar. 31, 2017 | |
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 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 Fiscal Year 2017: Valuation allowance for trade and notes receivable $ 8.9 $ 0.7 $ 2.0 $ — $ (1.0 ) $ 10.6 Valuation allowance for excess and obsolete inventory 37.6 7.6 1.3 (0.2 ) (6.2 ) 40.1 Valuation allowance for income taxes 27.2 4.0 0.2 — (3.7 ) 27.7 (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 Polici31
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
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. |
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; historically, revisions to estimates have not been significant. Other than a standard product warranty, there are no other significant 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. |
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 $10.6 million at March 31, 2017 and $8.9 million at March 31, 2016 . 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. The Company’s total inventories valued using the “last-in, first-out” (LIFO) method was 60% and 64% at March 31, 2017 and 2016 , respectively. 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 initially 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. The Company recognized accelerated depreciation of $9.6 million , $2.5 million , and zero during fiscal 2017 , 2016 , and 2015 , respectively. Accelerated depreciation is recorded within Cost of sales in the consolidated statements of operations. 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 7 to 20 years, 3 to 15 years, and 3 to 15 years, respectively. Where appropriate, the lives of certain intangible assets may be adjusted to reflect a change in the use of those assets, or amortization may be accelerated in the case of a known intangible asset discontinuation. 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 accordingly. The Company recognized impairment charges associated with these assets during fiscal 2017 and 2016 , in the amount of $1.5 million and $17.5 million , respectively. There were no impairment charges impacting continuing operations during fiscal 2015. The impairment was determined utilizing Level 3 inputs within the Fair Value hierarchy, and the Company reviewed and considered input from outside specialists, when appropriate. |
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 the 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; 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. |
Per Share Data | Per Share Data Basic net income (loss) per share from continuing and discontinued operations attributable to Rexnord common stockholders is computed by dividing net income from continuing operations and (loss) from discontinued operations attributable to Rexnord common stockholders, 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 attributable to Rexnord common stockholders 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. |
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. For the derivative instruments designated and qualifying as effective hedging instruments under ASC 815, Accounting for Derivative Instruments and Hedging Activities ("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 of such instruments. 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. The Company periodically enters into foreign currency forward contracts to mitigate foreign currency volatility on certain intercompany and external cash flows expected to occur. See Note 12 Derivative Financial Instruments for additional information. Currency transaction losses are included in other expense (income), 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 January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment ("ASU 2017-04"). The amendments in ASU 2017-04 allow companies to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 is effective for the beginning of the Company's fiscal 2021, with early adoption permitted, and must be applied prospectively. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In March 2016, the FASB issued 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. The Company elected to early adopt this standard in the first quarter of fiscal 2017 . The impact of the adoption of this standard resulted in the following: • The Company recorded a benefit of $7.6 million within income tax expense for the fiscal year ended March 31, 2017 , related to the net excess tax benefit on stock options, restricted stock units and performance stock units. Prior to adoption, these amounts would have been recorded as a reduction of additional paid-in capital. This change may create volatility in the Company's effective tax rate. • The Company properly no longer reclassifies the excess tax benefit from operating activities to financing activities in the consolidated statements of cash flows. The Company elected to apply this change prospectively and thus prior periods have not been adjusted. • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of its diluted earnings per share for the fiscal year ended March 31, 2017 . This increased the diluted weighted average common shares outstanding by approximately 0.3 million shares. In February 2015, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02''), which requires lessees to recognize lease assets and lease liabilities for all leases on the balance sheets. ASU 2016-02 is effective beginning for the Company's fiscal 2020 and interim periods included therein on a modified retrospective basis. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption. 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 2018, with early adoption permitted, and must be applied prospectively. The adoption of ASU 2015-11 is not expected to have an impact on the consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. The new guidance requires the service cost component of net periodic benefit cost to be presented in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period with only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be stated separately from the line item(s) that includes the service cost and outside of operating income. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is the Company's fiscal year 2019. The amendment is to be applied retrospectively. The Company has not yet evaluated the impact of adoption of this guidance will have on its consolidated financial statements. 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 an amount that reflects the consideration the company expects to be entitled to in exchange for the transfer of promised goods or services to customers. The guidance provides a five-step process that entities should follow in order to achieve that core principal. ASU 2014-09 will be effective for the Company on April 1, 2018. Companies can use either a full retrospective or modified retrospective method to adopt the standard. Under the full retrospective method, the requirements of the new standard are applied to contracts for each prior reporting period presented and the cumulative effective of applying the standard is recognized in the earliest period presented. Under the modified retrospective method, prior periods are not updated to be presented on an accounting basis that is consistent with information for fiscal 2019. Rather, a cumulative adjustment for the effects of applying the new standard to periods prior to fiscal 2019 is recorded to retained earnings as of April 1, 2018. The Company has not yet selected which approach to apply but is anticipating using the modified retrospective approach. The Company is assessing the impact of the new standard on its business by reviewing its current accounting policies and practices, including detailed reviews of customer contracts, to identify potential differences that would result from applying the requirements of the new standard to its revenue contracts. The Company will provide additional disclosure as its ongoing assessment progresses. |
Significant Accounting Polici32
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017 Year Ended March 31, 2016 Year Ended March 31, 2015 Balance at beginning of period $ 6.8 $ 6.8 $ 8.0 Acquired obligations 0.4 — — Charged to operations 3.9 2.8 1.8 Claims settled (3.6 ) (2.8 ) (3.0 ) Balance at end of period $ 7.5 $ 6.8 $ 6.8 |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the basis for income per share computations (in millions, except share amounts): Year Ended March 31, 2017 March 31, 2016 March 31, 2015 Numerator: Net income from continuing operations $ 74.1 $ 68.9 $ 91.8 Less: Non-controlling interest loss — (0.4 ) — Less: Dividends on preferred stock 7.3 — — Income from continuing operations attributable to Rexnord common stockholders 66.8 69.3 91.8 Loss from discontinued operations — (1.4 ) (8.0 ) Net income attributable to Rexnord common stockholders $ 66.8 $ 67.9 $ 83.8 Denominator: Weighted average common shares outstanding, basic 102,753 100,841 101,530 Effect of dilutive common shares equivalents 2,031 2,469 3,197 Weighted average common shares outstanding, dilutive 104,784 103,310 104,727 |
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, for the fiscal years ending March 31, 2017 , 2016 and 2015 are as follows (in millions): Interest Rate Derivatives Foreign Currency Translation Pension and Postretirement Plans Total Balance at March 31, 2014 $ (1.7 ) $ 7.8 $ (29.9 ) $ (23.8 ) Other comprehensive 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 ) Other comprehensive income (loss) before reclassifications 1.1 (12.8 ) 9.2 (2.5 ) Amounts reclassified from accumulated other comprehensive loss 6.3 — (1.8 ) 4.5 Net current period other comprehensive income (loss) 7.4 (12.8 ) 7.4 2.0 Balance at March 31, 2017 $ (9.5 ) $ (99.3 ) $ (28.2 ) $ (137.0 ) |
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, 2017 , 2016 and 2015 (in millions): Pension and postretirement plans Year Ending March 31, 2017 Year Ending March 31, 2016 Year Ending March 31, 2015 Income Statement Line Item Amortization of prior service credit $ (1.9 ) $ (1.9 ) $ (1.7 ) Selling, general and administrative expenses Lump Sum Settlement — — 6.5 Actuarial (gain) loss on pension and postretirement benefit obligations Curtailment (1.0 ) — — Actuarial (gain) loss on pension and postretirement benefit obligations Provision (benefit) for income taxes 1.1 0.7 (1.9 ) Total, net of income taxes $ (1.8 ) $ (1.2 ) $ 2.9 Interest rate derivatives Net realized losses on interest rate hedges $ 10.2 $ — $ — Interest expense, net Benefit for income taxes (3.9 ) — — Total, net of income taxes $ 6.3 $ — $ — |
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, 2017 , 2016 and 2015 amounted to the following (in millions): Year Ended March 31, 2017 Year Ended March 31, 2016 Year Ended March 31, 2015 Research and development costs $ 11.1 $ 12.4 $ 12.8 Engineering costs 27.2 24.8 26.0 Total $ 38.3 $ 37.2 $ 38.8 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Results of Discontinued Operations | The following table summarizes the results of the Mill Products business included within loss from discontinued operations, net of tax on the consolidated statements of operations (in millions): Year Ended March 31, 2016 March 31, 2015 Net sales $ — $ 34.1 Loss from operations before income taxes (2.2 ) (10.9 ) Benefit for income taxes (0.8 ) (2.9 ) Net loss from discontinued operations $ (1.4 ) $ (8.0 ) Net loss per share from discontinued operations: Basic $ (0.01 ) $ (0.08 ) Diluted $ (0.01 ) $ (0.08 ) |
Restructuring and Other Simil34
Restructuring and Other Similar Charges (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | 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 Ended March 31, Pre-tax Loss Description 2017 $ (16.3 ) Includes other restructuring charges (primarily severance costs) of $3.8 million 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 The following table summarizes the Company's restructuring and other similar costs incurred during the years ended March 31, 2017 , 2016 and 2015 by classification of operating segment (in millions): Year Ended March 31, 2017 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 16.5 $ 6.2 $ — $ 22.7 Asset impairment charges (1) 1.5 — — 1.5 Contract termination and other associated costs (2) 5.4 2.0 — 7.4 Total restructuring and other similar costs $ 23.4 $ 8.2 $ — $ 31.6 Year Ended March 31, 2016 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 10.8 $ 4.2 $ 0.3 $ 15.3 Asset impairment charges (1) 1.0 16.5 — 17.5 Contract termination and other associated 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 Employee termination benefits $ 7.6 $ 3.3 $ — $ 10.9 Contract termination and other associated costs 1.2 0.8 — 2.0 Total restructuring and other similar costs $ 8.8 $ 4.1 $ — $ 12.9 Restructuring Costs To-date (Period from April 1, 2011 to March 31, 2017) Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 44.3 $ 19.8 $ 2.0 $ 66.1 Asset impairment charges 2.5 16.5 — 19.0 Contract termination and other associated costs 9.8 8.3 — 18.1 Total restructuring and other similar costs $ 56.6 $ 44.6 $ 2.0 $ 103.2 (1) In connection with the ongoing supply chain optimization and footprint repositioning initiatives, the Company has taken several actions to consolidate existing manufacturing facilities and rationalize its product offerings. These actions require the Company to assess whether the carrying amount of impacted long-lived assets will be recoverable as well as whether the remaining useful lives require adjustment. The Company recognized impairment charges associated with these assets during fiscal 2017 and 2016 , in the amount of $1.5 million and $17.5 million , respectively. The impairment was determined utilizing independent appraisals of the assets, classified as Level 3 inputs within the Fair Value hierarchy. Refer to Note 13 Fair Value Measurements for additional information. (2) During fiscal 2017 , the Company received a $1.0 million cash payment in connection with the sale of certain Rodney Hunt Fontaine ("RHF") related intellectual property, which was fully impaired during fiscal 2016 when the Company announced its decision to exit the RHF product line. A gain on the disposition of this intellectual property of $1.0 million was recognized during fiscal 2017 within the Water Management operating segment. |
Summary of Activity in Restructuring Accrual | The following table summarizes the activity in the Company's accrual for restructuring costs for the fiscal years ended March 31, 2017 and 2016 (in millions): Employee termination benefits Asset impairment charges Contract termination and other associated costs Total Accrued Restructuring Costs, March 31, 2015 $ 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 Charges 22.7 1.5 7.4 31.6 Cash payments (2) (20.0 ) — (6.7 ) (26.7 ) Non-cash charges (3) (2.2 ) (1.5 ) — (3.7 ) Accrued Restructuring Costs, March 31, 2017 (1) $ 11.0 $ — $ 1.0 $ 12.0 (1) The restructuring accrual is included in Other current liabilities on the consolidated balance sheets. (2) Includes the $1.0 million cash payment received in conjunction with the aforementioned disposition of RHF-related intellectual property. (3) Included in Employee termination benefits for the year ended March 31, 2017 is $2.2 million of contractual termination benefits recognized for enhanced benefits that will be provided to certain employees impacted by the ongoing supply chain optimization and footprint repositioning initiatives. Those amounts are recorded in the Pension and post-retirement benefit obligations within the consolidated balance sheets and are therefore excluded from the restructuring accrual. Refer to Note 16 Retirement Benefits for additional information. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories | The major classes of inventories are summarized as follows (in millions): March 31, 2017 2016 Finished goods $ 139.9 $ 148.4 Work in progress 44.4 55.3 Purchased components 74.0 67.6 Raw materials 47.7 49.3 Inventories at First-in, First-Out ("FIFO") cost 306.0 320.6 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 8.9 6.6 $ 314.9 $ 327.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net is summarized as follows (in millions): March 31, 2017 2016 Land $ 32.2 $ 31.2 Buildings and improvements 239.0 210.8 Machinery and equipment 391.0 401.0 Hardware and software 68.9 65.4 Construction in-progress 19.8 37.6 750.9 746.0 Less accumulated depreciation (350.0 ) (348.8 ) $ 400.9 $ 397.2 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The changes in the net carrying value of goodwill for the years ended March 31, 2017 and 2016 by operating segment, consisted of the following (in millions): Goodwill Process & Motion Control Water Management Consolidated Net carrying amount as of March 31, 2015 $ 949.9 $ 252.4 $ 1,202.3 Purchase price allocation adjustments (4.8 ) — (4.8 ) Currency translation adjustment and other (2.7 ) (1.0 ) (3.7 ) Net carrying amount as of March 31, 2016 $ 942.4 $ 251.4 $ 1,193.8 Acquisitions (1) 129.4 — 129.4 Currency translation adjustment and other (3.0 ) (2.0 ) (5.0 ) Net carrying amount as of March 31, 2017 $ 1,068.8 $ 249.4 $ 1,318.2 ______________________ (1) Refer to Note 3 for additional information regarding acquisitions. |
Schedule of Gross Carrying Amount and Accumulated Amortization for Finite-Lived Intangible Assets | The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2017 and March 31, 2016 consisted of the following (in millions): March 31, 2017 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 47.0 $ (37.7 ) $ 9.3 Customer relationships (including distribution network) 13 years 685.8 (475.2 ) 210.6 Tradenames 12 years 29.5 (5.3 ) 24.2 Intangible assets not subject to amortization - trademarks and tradenames 314.5 — 314.5 Total intangible assets, net 13 years $ 1,076.8 $ (518.2 ) $ 558.6 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 Total intangible assets, net 12 years $ 998.1 $ (477.2 ) $ 520.9 |
Schedule of Gross Carrying Amount and Accumulated Amortization for Infinite-Lived Intangible Assets | The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2017 and March 31, 2016 consisted of the following (in millions): March 31, 2017 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 47.0 $ (37.7 ) $ 9.3 Customer relationships (including distribution network) 13 years 685.8 (475.2 ) 210.6 Tradenames 12 years 29.5 (5.3 ) 24.2 Intangible assets not subject to amortization - trademarks and tradenames 314.5 — 314.5 Total intangible assets, net 13 years $ 1,076.8 $ (518.2 ) $ 558.6 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 Total intangible assets, net 12 years $ 998.1 $ (477.2 ) $ 520.9 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are summarized as follows (in millions): March 31, 2017 March 31, 2016 Customer advances $ 10.9 $ 8.3 Sales rebates 25.5 28.2 Commissions 6.3 7.9 Restructuring and other similar charges (1) 12.0 10.8 Product warranty (2) 7.5 6.8 Risk management (3) 8.9 9.9 Legal and environmental 4.4 4.6 Taxes, other than income taxes 10.5 6.6 Income taxes payable 17.8 15.0 Interest payable 5.7 5.6 Other 17.9 20.7 $ 127.4 $ 124.4 ____________________ (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, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt is summarized as follows (in millions): March 31, 2017 March 31, 2016 Term loans (1) $ 1,584.5 $ 1,881.0 Other subsidiary debt (2) 38.2 39.1 Total 1,622.7 1,920.1 Less current maturities 16.5 20.2 Long-term debt $ 1,606.2 $ 1,899.9 ____________________ (1) Includes an unamortized original issue discount and debt issuance costs of $17.9 million and $20.2 million at March 31, 2017 and March 31, 2016 , respectively. (2) Includes unamortized debt issuance costs of $0.5 million and $0.6 million at March 31, 2017 and March 31, 2016 , respectively. |
Schedule of Maturities of Long-Term Debt | Future maturities of debt as of March 31, 2017 , excluding the unamortized original issue discount and debt issuance costs of $18.4 million , were as follows (in millions): Years ending March 31: 2018 $ 16.5 2019 16.4 2020 30.3 2021 16.4 2022 16.1 Thereafter 1,545.4 $ 1,641.1 |
Derivative Financial Instrume40
Derivative Financial Instruments (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated as Hedging Instruments | Fair value of derivatives designated as hedging instruments under ASC 815 (in millions): March 31, 2017 March 31, 2016 Balance Sheet Classification Liability Derivatives Interest rate swaps $ 10.3 $ 21.8 Other liabilities Asset Derivatives Interest rate caps $ — $ 0.3 Other assets |
Schedule of Derivatives Not Designated as Hedging Instruments | Fair value of derivatives not designated as hedging instruments under ASC 815 (in millions): March 31, 2017 March 31, 2016 Balance Sheet Classification Liability Derivatives Foreign currency forward contracts $ 0.1 $ 0.9 Other current liabilities |
Schedules of Gains and Losses Associated with 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, 2017 , 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, 2017 March 31, 2016 Interest rate swaps $ 6.4 $ 13.5 Interest rate caps $ 3.1 $ 3.4 Amount recognized in other (expense) income, net Derivative instruments not designated as hedging instruments under ASC 815 Location of gain recognized in income on derivatives Year Ended March 31, 2017 March 31, 2016 March 31, 2015 Foreign currency forward contracts Other (expense) income, net $ 0.3 $ — $ 0.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets 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, 2017 and March 31, 2016 (in millions): Fair Value as of March 31, 2017 Level 1 Level 2 Level 3 Total Assets: Interest rate caps $ — $ 0.0 $ — $ 0.0 Total assets at fair value — 0.0 — 0.0 Liabilities: Interest rate swaps — 10.3 — 10.3 Foreign currency forward contracts — 0.1 — 0.1 Total liabilities at fair value $ — $ 10.4 $ — $ 10.4 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 |
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, 2017 and March 31, 2016 (in millions): Fair Value as of March 31, 2017 Level 1 Level 2 Level 3 Total Assets: Interest rate caps $ — $ 0.0 $ — $ 0.0 Total assets at fair value — 0.0 — 0.0 Liabilities: Interest rate swaps — 10.3 — 10.3 Foreign currency forward contracts — 0.1 — 0.1 Total liabilities at fair value $ — $ 10.4 $ — $ 10.4 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 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017 are as follows (in millions): Years ending March 31: 2018 $ 17.5 2019 14.7 2020 12.8 2021 7.4 2022 6.7 Thereafter 18.2 $ 77.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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: Years Ended March 31, 2017 March 31, 2016 March 31, 2015 Expected option term (in years) 6.5 6.5 7.1 Expected volatility factor 29 % 24 % 26 % Weighted-average risk free interest rate 1.58 % 1.82 % 2.10 % Expected dividend rate 0.0 % 0.0 % 0.0 % |
Schedule of Stock Options Activity | A summary of stock option activity during fiscal 2017, 2016 and 2015 is as follows: Years Ended March 31, 2017 March 31, 2016 March 31, 2015 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 7,854,685 $ 15.10 8,588,518 $ 13.04 8,652,834 $ 10.79 Granted 2,602,014 19.72 1,072,556 24.14 1,268,124 28.30 Exercised (1) (2,116,571 ) 5.18 (1,278,017 ) 5.55 (743,807 ) 5.85 Canceled/Forfeited (569,458 ) 23.34 (528,372 ) 23.53 (588,633 ) 21.65 Outstanding at end of period (2) 7,770,670 $ 18.73 7,854,685 $ 15.10 8,588,518 $ 13.04 Exercisable at end of period (3) 3,221,622 $ 15.25 4,678,216 $ 9.52 4,798,457 $ 5.67 ______________________ (1) The total intrinsic value of options exercised during fiscal 2017 , 2016 and 2015 was $29.1 million , $16.3 million and $16.7 million , respectively. (2) The weighted average remaining contractual life of options outstanding was 6.6 years at March 31, 2017 , 5.0 years at March 31, 2016 and 5.0 years at March 31, 2015 . The aggregate intrinsic value of options outstanding at March 31, 2017 was $40.3 million . (3) The weighted average remaining contractual life of options exercisable was 4.6 years at March 31, 2017 , 3.0 years at March 31, 2016 and 2.6 years at March 31, 2015 . The aggregate intrinsic value of options exercisable at March 31, 2017 was $27.9 million . Shares Weighted Avg. Exercise Price Nonvested options at beginning of period 3,176,469 $ 23.30 Granted 2,602,014 19.72 Vested (749,416 ) 23.69 Canceled/Forfeited (480,019 ) 23.14 Nonvested options at end of period 4,549,048 $ 21.20 |
Schedule of Restricted Stock Units Activity | A summary of RSU activity during fiscal 2017 , 2016 , and 2015 is as follows: Years Ended March 31, 2017 March 31, 2016 March 31, 2015 Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Nonvested RSUs at beginning of period 125,307 $ 24.67 53,813 $ 29.06 — $ — Granted 279,445 19.53 96,952 23.20 58,883 29.08 Vested (48,207 ) 24.01 (12,866 ) 29.09 — — Canceled/Forfeited (34,403 ) 22.00 (12,592 ) 27.62 (5,070 ) 29.31 Nonvested RSUs at end of period 322,142 $ 20.59 125,307 $ 24.67 53,813 $ 29.06 |
Schedule of Nonvested Performance-based Units Activity | A summary of PSU activity during fiscal 2017 and 2016 is as follows: Years Ended March 31, 2017 March 31, 2016 Shares Weighted Avg. Grant Date Fair Value Shares Weighted Avg. Grant Date Fair Value Nonvested PSUs at beginning of period 49,136 $ 28.57 — $ — Granted 219,266 23.95 50,711 28.57 Vested — — — — Canceled/Forfeited (8,472 ) 25.90 (1,575 ) — Nonvested PSUs at end of period 259,930 $ 24.74 49,136 $ 28.57 |
Schedule of Weighted-Average Assumptions Used, Performance Stock Units | The following weighted-average assumptions were used for the PSUs granted during fiscal 2017 and 2016: Years Ended March 31, 2017 March 31, 2016 Expected volatility factor 30 % 31 % Weighted-average risk-free interest rate 0.86 % 1.01 % Expected dividend rate 0.0 % 0.0 % PSU fair value per share $27.67 $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, 2017 March 31, 2016 March 31, 2015 March 31, 2017 March 31, 2016 March 31, 2015 Benefit Obligations: Discount rate 3.85 % 3.84 % 3.70 % 4.00 % 3.90 % 3.80 % Rate of compensation increase 2.96 % 3.07 % 3.40 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.84 % 3.70 % 4.54 % 3.90 % 3.80 % 4.30 % Rate of compensation increase 2.96 % 3.40 % 3.41 % n/a n/a n/a Expected return on plan assets 5.34 % 5.33 % 5.30 % n/a n/a n/a |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017 March 31, 2016 March 31, 2015 Pension Benefits: Service cost $ 1.8 $ 2.2 $ 1.4 Interest cost 25.7 25.5 30.0 Expected return on plan assets (27.1 ) (28.8 ) (29.8 ) Amortization of: Prior service cost 0.1 0.1 0.2 (Income) cost associated with special events: Settlement (1) — — 6.5 Curtailment (2) (1.4 ) — — Contractual termination benefits (3) 2.2 — — Recognition of actuarial losses — 13.0 51.7 Net periodic benefit cost $ 1.3 $ 12.0 $ 60.0 Other Postretirement Benefits: Service cost $ 0.1 $ 0.1 $ 0.1 Interest cost 1.1 1.2 1.3 Amortization: Prior service credit (2.0 ) (2.0 ) (1.9 ) Cost associated with special events: Curtailment (2) 0.4 — — Recognition of actuarial (gains) losses (1.6 ) (0.1 ) 1.2 Net periodic benefit (income) cost $ (2.0 ) $ (0.8 ) $ 0.7 (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 . (2) During fiscal 2017, certain active participants of a foreign pension plan were transferred out of the pension plan and placed into a defined contribution plan, resulting in a curtailment gain of $1.4 million . In addition, the Company also recognized a curtailment loss of $0.4 million during fiscal 2017 as a result of the decision to close a U.S. manufacturing facility in connection with the Company’s ongoing supply chain optimization and footprint repositioning initiatives. See Note 5 Restructuring and Other Similar Charges for additional information. The recognition of the non-cash net curtailment gain of $1.0 million is recorded within Actuarial (gain) loss on pension and postretirement benefit obligations on the fiscal 2017 consolidated statements of operations. (3) During fiscal 2017, the Company recognized incremental expense of $2.2 million of termination benefits associated with incremental benefits participants of the Company’s domestic union defined benefit plans will receive following the Company’s decision to close one of its U.S. manufacturing facilities. The contractual termination benefit is recorded in Restructuring and other similar charges on the fiscal 2017 consolidated statements of operations. |
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, 2017 Year Ended March 31, 2016 Year Ended March 31, 2017 Year Ended March 31, 2016 Benefit obligation at beginning of period $ (674.0 ) $ (718.8 ) $ (29.6 ) $ (32.4 ) Service cost (1.8 ) (2.2 ) (0.1 ) (0.1 ) Interest cost (25.7 ) (25.5 ) (1.1 ) (1.2 ) Actuarial gains 11.8 35.1 3.7 0.7 Benefits paid 39.8 38.8 3.1 4.0 Plan participant contributions (0.3 ) (0.4 ) (0.6 ) (0.6 ) Acquisition (1) (18.3 ) — — — Contractual termination benefits (2) (2.2 ) — — — Curtailments 2.5 — (1.1 ) — Translation adjustment 2.8 (1.0 ) — — Benefit obligation at end of period $ (665.4 ) $ (674.0 ) $ (25.7 ) $ (29.6 ) Plan assets at the beginning of the period $ 503.6 $ 543.2 $ — $ — Actual return on plan assets 26.6 (9.5 ) — — Contributions 8.6 8.6 3.1 4.0 Benefits paid (39.8 ) (38.8 ) (3.1 ) (4.0 ) Acquisition (1) 14.9 — — — Translation adjustment (0.9 ) 0.1 — — Plan assets at end of period $ 513.0 $ 503.6 $ — $ — Funded status of plans $ (152.4 ) $ (170.4 ) $ (25.7 ) $ (29.6 ) Net amount on Consolidated Balance Sheets consists of: Non-current assets $ 0.6 $ 0.5 $ — $ — Current liabilities (2.2 ) (2.4 ) (2.1 ) (2.6 ) Long-term liabilities (150.8 ) (168.5 ) (23.6 ) (27.0 ) Total net funded status $ (152.4 ) $ (170.4 ) $ (25.7 ) $ (29.6 ) (1) In fiscal 2017, Rexnord acquired Cambridge. See Note 3 Acquisitions for additional information. (2) During fiscal 2017 Rexnord recognized $2.2 million in special termination benefits associated with the closure of one of its U.S. manufacturing facilities. This expense was recognized as restructuring. |
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, 2017 and 2016 consist of the following (in millions): As of March 31, 2017 Pension Benefits Postretirement Benefits Total Unrecognized prior service credit $ (0.1 ) $ (3.1 ) $ (3.2 ) Unrecognized actuarial loss (gain) 49.4 (0.8 ) 48.6 Accumulated other comprehensive loss (income), gross 49.3 (3.9 ) 45.4 Deferred income tax (benefit) provision (18.7 ) 1.5 (17.2 ) Accumulated other comprehensive loss (income), net $ 30.6 $ (2.4 ) $ 28.2 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 |
Schedule of Assumptions Used | The following weighted-average assumptions were used for the PSUs granted during fiscal 2017 and 2016: Years Ended March 31, 2017 March 31, 2016 Expected volatility factor 30 % 31 % Weighted-average risk-free interest rate 0.86 % 1.01 % Expected dividend rate 0.0 % 0.0 % PSU fair value per share $27.67 $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, 2017 March 31, 2016 March 31, 2015 March 31, 2017 March 31, 2016 March 31, 2015 Benefit Obligations: Discount rate 3.85 % 3.84 % 3.70 % 4.00 % 3.90 % 3.80 % Rate of compensation increase 2.96 % 3.07 % 3.40 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.84 % 3.70 % 4.54 % 3.90 % 3.80 % 4.30 % Rate of compensation increase 2.96 % 3.40 % 3.41 % n/a n/a n/a Expected return on plan assets 5.34 % 5.33 % 5.30 % 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, 2017 and actual investment allocations at March 31, 2017 and 2016 . Plan Assets 2017 2016 Investment Policy (1) Target Allocation (2) Actual Allocation Actual Allocation Equity securities 20 - 30% 29 % 30 % 28 % Debt securities (including cash and cash equivalents) 55 - 80% 66 % 64 % 66 % Other 0 - 10% 5 % 6 % 6 % (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, 2017 and 2016 , 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, 2017 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured at net asset value (1) Total Cash and cash equivalents $ 2.0 $ — $ — $ 4.5 $ 6.5 Investment funds Fixed income funds (2) 8.8 — — 317.5 326.3 U.S. equity funds (3) 3.7 — — 65.2 68.9 International equity funds (3) 2.0 — — 38.5 40.5 Balanced funds (3) — — — 9.3 9.3 Alternative investment funds (4) — — — 37.6 37.6 Insurance contracts — — 23.9 — 23.9 Total $ 16.5 $ — $ 23.9 $ 472.6 513.0 As of March 31, 2016 Quoted Prices in Active Market (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets measured at net asset value (1) Total Cash and cash equivalents $ 1.7 $ — $ — $ 4.9 $ 6.6 Investment funds Fixed income funds (2) — — — 328.8 328.8 U.S. equity funds (3) — — — 63.7 63.7 International equity funds (3) — — — 35.3 35.3 Balanced funds (3) 9.1 9.1 Alternative investment funds (4) — — — 37.5 37.5 Insurance contracts — — 22.6 — 22.6 Total $ 1.7 $ — $ 22.6 $ 479.3 503.6 (1) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (2) 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 primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. In fiscal 2017, Rexnord acquired Cambridge which sponsored pension plans that held exchange-traded funds that are valued using quoted market prices from active markets. (3) 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 primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. In fiscal 2017, Rexnord acquired Cambridge which sponsored pension plans that held exchange-traded funds that are valued using quoted market prices from active markets. (4) 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 Company is generally able to redeem investments at periodic times during the year with notice provided to the general partner. |
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, 2017 and 2016 (in millions): Insurance Contracts Beginning balance, March 31, 2015 $ 23.4 Actual return on assets: Related to assets held at reporting date (0.8 ) Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, March 31, 2016 22.6 Actual return on assets: Related to assets held at reporting date 1.3 Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, March 31, 2017 $ 23.9 |
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 2018 $ 41.3 $ 2.2 2019 41.3 2.6 2020 41.0 2.6 2021 41.0 2.5 2022 40.9 2.3 2023-2027 201.7 8.3 |
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, 2017 2016 2015 2017 2016 2015 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 2.1 2.6 2.9 (1.8 ) (2.2 ) (2.5 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of the Provision (Benefit) For Income Taxes | The components of the provision for income taxes are as follows (in millions): Year ended March 31, 2017 2016 2015 Current: United States $ 12.1 $ 24.0 $ 17.2 Non-United States 20.3 15.3 15.6 State and local 2.2 3.9 4.7 Total current 34.6 43.2 37.5 Deferred: United States (18.0 ) (10.2 ) (8.2 ) Non-United States (6.8 ) 1.1 (10.5 ) State and local (1.9 ) (17.0 ) (2.0 ) Total deferred (26.7 ) (26.1 ) (20.7 ) Provision for income taxes $ 7.9 $ 17.1 $ 16.8 |
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, 2017 2016 2015 Provision for income taxes at U.S. federal statutory income tax rate $ 28.7 $ 30.1 $ 37.9 State and local income taxes, net of federal benefit 0.8 2.7 2.6 Net effects of foreign rate differential (1.3 ) (3.0 ) (3.3 ) Net effects of foreign operations (4.4 ) (2.1 ) 8.9 Net effect to deferred taxes for changes in tax rates (0.3 ) (0.8 ) 0.2 Unrecognized tax benefits, net of federal benefit 0.5 (11.3 ) (0.5 ) Domestic production activities deduction (2.7 ) (1.3 ) (2.3 ) Research and development credit (7.6 ) — — Excess tax benefits related to equity compensation (7.0 ) — — Change in valuation allowance 0.5 2.3 (27.4 ) Other 0.7 0.5 0.7 Provision for income taxes $ 7.9 $ 17.1 $ 16.8 |
Components of Income (Loss) Before Income Taxes | The provision for income taxes was calculated based upon the following components of income from continuing operations before income taxes (in millions): Year ended March 31, 2017 2016 2015 United States $ 50.4 $ 45.3 $ 89.9 Non-United States 31.6 40.7 18.7 Income before income taxes $ 82.0 $ 86.0 $ 108.6 |
Schedule of Deferred Income Taxes | Deferred income taxes consist of the tax effects of the following temporary differences (in millions): March 31, 2017 March 31, 2016 Deferred tax assets: Compensation and retirement benefits $ 79.9 $ 84.4 General accruals and reserves 18.1 18.3 State tax net operating loss carryforwards 19.2 19.6 Foreign tax credit carryforwards — 4.3 Foreign net operating loss and interest carryforwards 22.5 17.7 Other 7.9 14.5 Total deferred tax assets before valuation allowance 147.6 158.8 Valuation allowance (27.7 ) (27.2 ) Total deferred tax assets 119.9 131.6 Deferred tax liabilities: Property, plant and equipment 39.9 42.8 Inventories 31.5 30.1 Intangible assets and goodwill 217.5 197.7 Cancellation of indebtedness 27.6 43.4 Total deferred tax liabilities 316.5 314.0 Net deferred tax liabilities $ 196.6 $ 182.4 Net amount on Consolidated Balance Sheet consists of: Other assets $ 12.2 $ 3.6 Deferred income taxes (208.8 ) (186.0 ) Net long-term deferred tax liabilities $ (196.6 ) $ (182.4 ) |
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, 2017 and March 31, 2016 (in millions): Year Ended March 31, 2017 2016 Balance at beginning of period $ 13.2 $ 21.7 Additions based on tax positions related to the current year 0.8 0.8 Additions for tax positions of prior years 2.8 1.2 Reductions for tax positions of prior years — (0.1 ) Reductions due to lapse of applicable statute of limitations (1.7 ) (10.3 ) Cumulative translation adjustment (0.1 ) (0.1 ) Balance at end of period $ 15.0 $ 13.2 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Business Segment Information: (in Millions) Year Ended March 31, 2017 March 31, 2016 March 31, 2015 Net sales by product Process & Motion Control: Original equipment manufacturers/ end-users $ 594.6 $ 572.3 $ 642.1 Maintenance, repair, and operations 540.1 528.0 588.1 Total Process & Motion Control 1,134.7 1,100.3 1,230.2 Water Management: Water safety, quality, flow control and conservation 538.9 534.1 517.1 Water infrastructure 244.6 289.4 302.9 Total Water Management 783.5 823.5 820.0 Consolidated net sales 1,918.2 1,923.8 2,050.2 Income (loss) from operations Process & Motion Control 134.9 146.8 219.6 Water Management 85.1 72.8 79.0 Corporate (36.3 ) (45.3 ) (94.9 ) Consolidated income from operations 183.7 174.3 203.7 Non-operating expense: Interest expense, net (88.7 ) (91.4 ) (87.9 ) Loss on the extinguishment of debt (7.8 ) — — Other (expense) income, net (5.2 ) 3.1 (7.2 ) Income from continuing operations before income taxes 82.0 86.0 108.6 Provision for income taxes 7.9 17.1 16.8 Net income from continuing operations 74.1 68.9 91.8 Loss from discontinued operations, net of tax — (1.4 ) (8.0 ) Net income 74.1 67.5 83.8 Non-controlling interest loss — (0.4 ) — Net income attributable to Rexnord 74.1 67.9 83.8 Dividends on preferred stock (7.3 ) — — Net income attributable to Rexnord common stockholders $ 66.8 $ 67.9 $ 83.8 Depreciation and Amortization Process & Motion Control $ 69.9 $ 77.3 $ 74.1 Water Management 35.5 38.1 38.1 Consolidated $ 105.4 $ 115.4 $ 112.2 Capital Expenditures Process & Motion Control $ 42.0 $ 43.6 $ 37.7 Water Management 12.5 8.5 11.1 Consolidated $ 54.5 $ 52.1 $ 48.8 March 31, 2017 March 31, 2016 March 31, 2015 Total Assets Process & Motion Control $ 2,671.4 $ 2,412.7 $ 2,419.0 Water Management 862.3 933.2 981.9 Corporate 5.6 8.9 8.4 Consolidated $ 3,539.3 $ 3,354.8 $ 3,409.3 |
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, 2017 Year Ended March 31, 2016 Year Ended March 31, 2015 March 31, 2017 March 31, 2016 March 31, 2015 United States $ 1,320.3 $ 1,306.9 $ 1,380.0 $ 267.2 $ 276.0 $ 279.4 Europe 332.6 370.8 374.0 72.2 80.5 92.1 Rest of World 265.3 246.1 296.2 61.5 40.7 46.1 $ 1,918.2 $ 1,923.8 $ 2,050.2 $ 400.9 $ 397.2 $ 417.6 |
Quarterly Results of Operatio47
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarterly Results of Operations (unaudited) (in millions, except per share amounts) Fiscal 2017 First Quarter Second Quarter Third Quarter Fourth Quarter Total Net sales $ 471.8 $ 491.0 $ 451.8 $ 503.6 $ 1,918.2 Gross profit 165.4 174.0 153.0 175.6 668.0 Net income attributable to Rexnord 18.9 24.6 3.2 27.4 74.1 Dividends on preferred stock — — (1.5 ) (5.8 ) (7.3 ) Net income attributable to Rexnord common stockholders $ 18.9 $ 24.6 $ 1.7 $ 21.6 $ 66.8 Net income per share attributable to Rexnord common stockholders Basic $ 0.19 $ 0.24 $ 0.02 $ 0.21 $ 0.65 Diluted $ 0.18 $ 0.24 $ 0.02 $ 0.21 $ 0.64 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 common stockholders $ 21.3 $ 22.6 $ 24.4 $ (0.4 ) $ 67.9 Basic net income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.21 $ 0.23 $ 0.24 $ 0.01 $ 0.69 Discontinued operations $ — $ — $ — $ (0.01 ) $ (0.01 ) Net income $ 0.21 $ 0.23 $ 0.24 $ (0.00 ) $ 0.67 Diluted income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.20 $ 0.22 $ 0.24 $ 0.01 $ 0.67 Discontinued operations $ — $ — $ — $ (0.01 ) $ (0.01 ) Net income $ 0.20 $ 0.22 $ 0.24 $ (0.00 ) $ 0.66 |
Basis of Presentation and Des48
Basis of Presentation and Description of Business - Narrative (Details) | 12 Months Ended |
Mar. 31, 2017segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating platforms | 2 |
Significant Accounting Polici49
Significant Accounting Policies - Narrative (Details) - USD ($) shares in Thousands | 12 Months Ended | 72 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Post-shipment obligations | $ 0 | $ 0 | ||
Allowance for doubtful accounts | $ 10,600,000 | $ 8,900,000 | 10,600,000 | |
Largest customer percentage of consolidated net sales | 8.40% | 8.40% | 8.90% | |
Largest customer accounts receivable balance | $ 12,300,000 | $ 8,100,000 | $ 12,300,000 | |
Percentage of inventory valued using LIFO | 60.00% | 64.00% | 60.00% | |
Write-down of inventories | $ 7,600,000 | $ 9,500,000 | $ 5,200,000 | |
Accelerated depreciation | $ 9,600,000 | $ 2,500,000 | 0 | |
Goodwill and intangible assets useful life | 13 years | 12 years | ||
Impairment charges, long-lived assets | $ 31,600,000 | $ 34,900,000 | $ 12,900,000 | $ 103,200,000 |
Antidilutive shares excluded from computation for diluted net income per share (in shares) | 4,600 | 2,900 | 1,300 | |
Currency translation gains (losses) | $ 3,700,000 | $ 3,000,000 | $ 1,500,000 | |
Advertising costs | 10,600,000 | $ 9,200,000 | $ 10,400,000 | |
Income tax benefit | $ 7,600,000 | |||
Weighted average number diluted shares outstanding adjustment (in shares) | 2,031 | 2,469 | 3,197 | |
Redeemable Convertible Preferred Stock | ||||
Property, Plant and Equipment [Line Items] | ||||
Antidilutive shares excluded from computation for diluted net income per share (in shares) | 5,800 | |||
Accounting Standards Update 2016-09 | ||||
Property, Plant and Equipment [Line Items] | ||||
Weighted average number diluted shares outstanding adjustment (in shares) | 300 | |||
Customer relationships (including distribution network) | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 13 years | 13 years | ||
Patents | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 10 years | 10 years | ||
Tradenames | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 12 years | 8 years | ||
Impairment charges, long-lived assets | $ 1,000,000 | |||
Facility Closing | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges, long-lived assets | $ 1,500,000 | $ 17,500,000 | $ 0 | $ 19,000,000 |
Minimum | Customer relationships (including distribution network) | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 7 years | |||
Minimum | Patents | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 3 years | |||
Minimum | Tradenames | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 3 years | |||
Maximum | Customer relationships (including distribution network) | ||||
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 | Tradenames | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 15 years | |||
Buildings and improvements | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 10 years | |||
Buildings and improvements | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 30 years | |||
Machinery and equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 5 years | |||
Machinery and equipment | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 10 years | |||
Hardware and software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 3 years | |||
Hardware and software | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 5 years |
Significant Accounting Polici50
Significant Accounting Policies - Product Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 6.8 | $ 6.8 | $ 8 |
Acquired obligations | 0.4 | 0 | 0 |
Charged to operations | 3.9 | 2.8 | 1.8 |
Claims settled | (3.6) | (2.8) | (3) |
Balance at end of period | $ 7.5 | $ 6.8 | $ 6.8 |
Significant Accounting Polici51
Significant Accounting Policies - Schedule of Per Share Data (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | |||||||||||
Net income from continuing operations | $ 27.4 | $ 3.2 | $ 24.6 | $ 18.9 | $ 0.8 | $ 24.3 | $ 22.6 | $ 21.2 | $ 74.1 | $ 68.9 | $ 91.8 |
Less: Non-controlling interest loss | (0.2) | (0.1) | 0 | (0.1) | 0 | (0.4) | 0 | ||||
Less: Dividends on preferred stock | 5.8 | 1.5 | 0 | 0 | 7.3 | 0 | 0 | ||||
Income from continuing operations attributable to Rexnord common stockholders | 66.8 | 69.3 | 91.8 | ||||||||
Loss from discontinued operations | (1.4) | 0 | 0 | 0 | 0 | (1.4) | (8) | ||||
Net income attributable to Rexnord common stockholders | $ 21.6 | $ 1.7 | $ 24.6 | $ 18.9 | $ (0.4) | $ 24.4 | $ 22.6 | $ 21.3 | $ 66.8 | $ 67.9 | $ 83.8 |
Denominator: | |||||||||||
Weighted average common shares outstanding, basic (in shares) | 102,753 | 100,841 | 101,530 | ||||||||
Effect of dilutive common shares equivalents (in shares) | 2,031 | 2,469 | 3,197 | ||||||||
Diluted (in shares) | 104,784 | 103,310 | 104,727 |
Significant Accounting Polici52
Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 588 | $ 552.7 | $ 562.1 |
Other comprehensive income (loss), net of tax | 2 | (8.8) | (106.4) |
Ending balance | 1,070.6 | 588 | 552.7 |
Interest Rate Derivatives | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (16.9) | (12.6) | (1.7) |
Other comprehensive loss before reclassifications | 1.1 | (4.3) | (10.9) |
Amounts reclassified from accumulated other comprehensive loss | 6.3 | 0 | 0 |
Other comprehensive income (loss), net of tax | 7.4 | (4.3) | (10.9) |
Ending balance | (9.5) | (16.9) | (12.6) |
Foreign Currency Translation | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (86.5) | (76.5) | 7.8 |
Other comprehensive loss before reclassifications | (12.8) | (10) | (84.3) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | (12.8) | (10) | (84.3) |
Ending balance | (99.3) | (86.5) | (76.5) |
Pension and Postretirement Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (35.6) | (41.1) | (29.9) |
Other comprehensive loss before reclassifications | 9.2 | 6.7 | (14.1) |
Amounts reclassified from accumulated other comprehensive loss | (1.8) | (1.2) | 2.9 |
Other comprehensive income (loss), net of tax | 7.4 | 5.5 | (11.2) |
Ending balance | (28.2) | (35.6) | (41.1) |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (139) | (130.2) | (23.8) |
Other comprehensive loss before reclassifications | (2.5) | (7.6) | (109.3) |
Amounts reclassified from accumulated other comprehensive loss | 4.5 | (1.2) | 2.9 |
Other comprehensive income (loss), net of tax | 2 | (8.8) | (106.4) |
Ending balance | $ (137) | $ (139) | $ (130.2) |
Significant Accounting Polici53
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, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Pension and postretirement plans | |||||||
Amortization of prior service credit | $ 413.2 | $ 385.7 | $ 415.1 | ||||
Lump Sum Settlement and Curtailment | (2.6) | 12.9 | 59.4 | ||||
Provision (benefit) for income taxes | 7.9 | 17.1 | 16.8 | ||||
Net income | $ (0.6) | $ 24.3 | $ 22.6 | $ 21.2 | 74.1 | 67.5 | 83.8 |
Interest rate derivatives | |||||||
Benefit for income taxes | 7.9 | 17.1 | 16.8 | ||||
Net income | $ (0.6) | $ 24.3 | $ 22.6 | $ 21.2 | 74.1 | 67.5 | 83.8 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Prior Service | |||||||
Pension and postretirement plans | |||||||
Amortization of prior service credit | (1.9) | (1.9) | (1.7) | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans. Lump Sum Settlement | |||||||
Pension and postretirement plans | |||||||
Lump Sum Settlement and Curtailment | 0 | 0 | 6.5 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Attributable to Parent, Curtailment | |||||||
Pension and postretirement plans | |||||||
Lump Sum Settlement and Curtailment | (1) | 0 | 0 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | |||||||
Pension and postretirement plans | |||||||
Provision (benefit) for income taxes | 1.1 | 0.7 | (1.9) | ||||
Net income | (1.8) | (1.2) | 2.9 | ||||
Interest rate derivatives | |||||||
Benefit for income taxes | 1.1 | 0.7 | (1.9) | ||||
Net income | (1.8) | (1.2) | 2.9 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | |||||||
Pension and postretirement plans | |||||||
Net income | 6.3 | 0 | 0 | ||||
Interest rate derivatives | |||||||
Net income | 6.3 | 0 | 0 | ||||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest | Interest Rate Contract | |||||||
Pension and postretirement plans | |||||||
Provision (benefit) for income taxes | (3.9) | 0 | 0 | ||||
Interest rate derivatives | |||||||
Net realized losses on interest rate hedges | 10.2 | 0 | 0 | ||||
Benefit for income taxes | $ (3.9) | $ 0 | $ 0 |
Significant Accounting Polici54
Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Accounting Policies [Abstract] | |||
Research and development costs | $ 11.1 | $ 12.4 | $ 12.8 |
Engineering costs | 27.2 | 24.8 | 26 |
Total | $ 38.3 | $ 37.2 | $ 38.8 |
Acquisitions - Narrative (Deta
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Jun. 01, 2016 | Jan. 12, 2015 | Oct. 30, 2014 | Apr. 15, 2014 | Jun. 30, 2016 | Mar. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Business Acquisition [Line Items] | |||||||||
Purchase price, net of cash acquired | $ 213.7 | $ (1.1) | $ 138.2 | ||||||
Purchase price adjustments - increase (decrease) in goodwill | (4.8) | ||||||||
Goodwill | $ 1,318.2 | 1,318.2 | 1,193.8 | 1,202.3 | |||||
Deferred acquisition payment | (5.7) | 0 | $ 0 | ||||||
Cambridge | |||||||||
Business Acquisition [Line Items] | |||||||||
Total cash purchase price | $ 213.4 | ||||||||
Purchase price, net of cash acquired | 210 | ||||||||
Additional consideration | $ 3.4 | ||||||||
Cash payment received | 0.7 | ||||||||
Purchase price adjustments - increase (decrease) in goodwill | 3.1 | ||||||||
Goodwill | 129.4 | 129.4 | |||||||
Other intangible assets | 80.6 | 80.6 | |||||||
Other net assets | 3.4 | 3.4 | |||||||
Cambridge | Tradenames | |||||||||
Business Acquisition [Line Items] | |||||||||
Other intangible assets | 16.8 | 16.8 | |||||||
Cambridge | Customer Relationships | |||||||||
Business Acquisition [Line Items] | |||||||||
Other intangible assets | 58.3 | 58.3 | |||||||
Cambridge | Patents | |||||||||
Business Acquisition [Line Items] | |||||||||
Other intangible assets | $ 5.5 | 5.5 | |||||||
Tollok S.p.A. | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price, net of cash acquired | $ 33.4 | ||||||||
Maximum purchase price, net of cash acquired | 39.2 | ||||||||
Payments to acquire business, two future, equal annual installments | 3.4 | ||||||||
Contingent consideration, not to exceed | $ 3.8 | ||||||||
Contingent consideration, not to exceed, period of time in which financial performance threshold will be monitored | 2 years | ||||||||
Deferred acquisition payment | 5.7 | ||||||||
Water Management | |||||||||
Business Acquisition [Line Items] | |||||||||
Purchase price, net of cash acquired | $ 0.3 | $ 0.3 | |||||||
Euroflex Transmissions | |||||||||
Business Acquisition [Line Items] | |||||||||
Total cash purchase price | $ 76 | ||||||||
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) | ||||||||
Goodwill | 69.9 | ||||||||
Other intangible assets | 71.4 | ||||||||
Other net assets | $ 1.6 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2015USD ($) | |
Business Divestiture [Line Items] | |
Discontinued operations, proceeds from sale | $ 9.2 |
Mill Products business | |
Business Divestiture [Line Items] | |
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, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Net loss per share from discontinued operations: | |||||||
Basic (in dollars per share) | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ (0.08) |
Diluted (in dollars per share) | $ (0.01) | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.01) | $ (0.08) |
Mill Products business | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net sales | $ 0 | $ 34.1 | |||||
Loss from operations before income taxes | (2.2) | (10.9) | |||||
Benefit for income taxes | (0.8) | (2.9) | |||||
Net (loss) income | $ (1.4) | $ (8) | |||||
Net loss per share from discontinued operations: | |||||||
Basic (in dollars per share) | $ (0.01) | $ (0.08) | |||||
Diluted (in dollars per share) | $ (0.01) | $ (0.08) |
Restructuring and Other Simil58
Restructuring and Other Similar Charges - By Operating Segment (Details) - USD ($) | 12 Months Ended | 72 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 31,600,000 | $ 34,900,000 | $ 12,900,000 | $ 103,200,000 |
Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 22,700,000 | 15,300,000 | 10,900,000 | 66,100,000 |
Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,500,000 | 17,500,000 | 0 | 19,000,000 |
Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 7,400,000 | 2,100,000 | 2,000,000 | 18,100,000 |
Tradenames | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,000,000 | |||
Proceeds from sale of RHF tradename | 1,000,000 | |||
Operating Segments | Process & Motion Control | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 23,400,000 | 12,300,000 | 8,800,000 | 56,600,000 |
Operating Segments | Process & Motion Control | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 16,500,000 | 10,800,000 | 7,600,000 | 44,300,000 |
Operating Segments | Process & Motion Control | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1,500,000 | 1,000,000 | 2,500,000 | |
Operating Segments | Process & Motion Control | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 5,400,000 | 500,000 | 1,200,000 | 9,800,000 |
Operating Segments | Water Management | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 8,200,000 | 22,300,000 | 4,100,000 | 44,600,000 |
Operating Segments | Water Management | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 6,200,000 | 4,200,000 | 3,300,000 | 19,800,000 |
Operating Segments | Water Management | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0 | 16,500,000 | 16,500,000 | |
Operating Segments | Water Management | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 2,000,000 | 1,600,000 | 800,000 | 8,300,000 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0 | 300,000 | 0 | 2,000,000 |
Corporate | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0 | 300,000 | 0 | 2,000,000 |
Corporate | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 0 | 0 | 0 | |
Corporate | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring and Other Simil59
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 | 72 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Loss | $ 82 | $ 86 | $ 108.6 | |
Charges | 31.6 | 34.9 | 12.9 | $ 103.2 |
Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 1.5 | 17.5 | ||
Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 22.7 | 15.3 | 10.9 | $ 66.1 |
RHF Product Line | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Loss | (16.3) | (43.1) | (14) | |
RHF Product Line | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Charges | 16.5 | |||
RHF Product Line | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other restructuring costs, primarily severance costs | $ 3.8 | $ 2.9 | $ 2.2 |
Restructuring and Other Simil60
Restructuring and Other Similar Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Millions | 12 Months Ended | 72 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | $ 10.8 | $ 7 | ||
Charges | 31.6 | 34.9 | $ 12.9 | $ 103.2 |
Cash payments | (26.7) | (13.6) | ||
Non-cash charges | (3.7) | (17.5) | ||
Accrued Restructuring Costs, End of Period | 12 | 10.8 | 7 | 12 |
Contractual termination benefits | 3.7 | 17.5 | ||
Employee termination benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | 10.5 | 6.7 | ||
Charges | 22.7 | 15.3 | 10.9 | 66.1 |
Cash payments | (20) | (11.5) | ||
Non-cash charges | (2.2) | 0 | ||
Accrued Restructuring Costs, End of Period | 11 | 10.5 | 6.7 | 11 |
Contractual termination benefits | 2.2 | 0 | ||
Asset impairment charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | 0 | 0 | ||
Charges | 1.5 | 17.5 | ||
Cash payments | 0 | 0 | ||
Non-cash charges | (1.5) | (17.5) | ||
Accrued Restructuring Costs, End of Period | 0 | 0 | 0 | 0 |
Contractual termination benefits | 1.5 | 17.5 | ||
Contract termination and other associated costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | 0.3 | 0.3 | ||
Charges | 7.4 | 2.1 | 2 | 18.1 |
Cash payments | (6.7) | (2.1) | ||
Non-cash charges | 0 | 0 | ||
Accrued Restructuring Costs, End of Period | 1 | 0.3 | $ 0.3 | $ 1 |
Contractual termination benefits | 0 | $ 0 | ||
Tradenames | ||||
Restructuring Reserve [Roll Forward] | ||||
Charges | 1 | |||
Proceeds from sale of RHF tradename | $ 1 |
Recovery Under Continued Dump61
Recovery Under Continued Dumping and Subsidy Offset Act ("CDSOA") - Narrative (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Component of Other Income, Nonoperating [Line Items] | |||
Income distributed from CBP | $ (5,200,000) | $ 3,100,000 | $ (7,200,000) |
Recovery under CDSOA | |||
Component of Other Income, Nonoperating [Line Items] | |||
Income distributed from CBP | $ 0 | $ 8,400,000 | $ 0 |
Inventories - By Category (Deta
Inventories - By Category (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 139.9 | $ 148.4 |
Work in progress | 44.4 | 55.3 |
Purchased components | 74 | 67.6 |
Raw materials | 47.7 | 49.3 |
Inventories at First-in, First-Out (FIFO) cost | 306 | 320.6 |
Adjustment to state inventories at Last-in, First-Out (LIFO) cost | 8.9 | 6.6 |
Inventories, net | $ 314.9 | $ 327.2 |
Property, Plant and Equipment
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 750.9 | $ 746 |
Less accumulated depreciation | (350) | (348.8) |
Property, plant and equipment, net | 400.9 | 397.2 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 32.2 | 31.2 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 239 | 210.8 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 391 | 401 |
Hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 68.9 | 65.4 |
Construction in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 19.8 | $ 37.6 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Schedule of Changes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Roll Forward] | ||
Net carrying amount, beginning of period | $ 1,193.8 | $ 1,202.3 |
Purchase price allocation adjustments | (4.8) | |
Currency translation adjustment and other | (5) | (3.7) |
Acquisitions | 129.4 | |
Net carrying amount, end of period | 1,318.2 | 1,193.8 |
Operating Segments | Process & Motion Control | ||
Goodwill [Roll Forward] | ||
Net carrying amount, beginning of period | 942.4 | 949.9 |
Purchase price allocation adjustments | (4.8) | |
Currency translation adjustment and other | (3) | (2.7) |
Acquisitions | 129.4 | |
Net carrying amount, end of period | 1,068.8 | 942.4 |
Operating Segments | Water Management | ||
Goodwill [Roll Forward] | ||
Net carrying amount, beginning of period | 251.4 | 252.4 |
Purchase price allocation adjustments | 0 | |
Currency translation adjustment and other | (2) | (1) |
Acquisitions | 0 | |
Net carrying amount, end of period | $ 249.4 | $ 251.4 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 13 years | 12 years |
Accumulated Amortization | $ (518.2) | $ (477.2) |
Intangible assets not subject to amortization - trademarks and tradenames | ||
Gross Carrying Amount | 1,076.8 | 998.1 |
Net Carrying Amount | $ 558.6 | $ 520.9 |
Patents | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 10 years | 10 years |
Gross Carrying Amount | $ 47 | $ 41.3 |
Accumulated Amortization | (37.7) | (34.6) |
Net Carrying Amount | $ 9.3 | $ 6.7 |
Customer relationships (including distribution network) | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 13 years | 13 years |
Gross Carrying Amount | $ 685.8 | $ 628.4 |
Accumulated Amortization | (475.2) | (439.6) |
Net Carrying Amount | $ 210.6 | $ 188.8 |
Tradenames | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 12 years | 8 years |
Gross Carrying Amount | $ 29.5 | $ 12.7 |
Accumulated Amortization | (5.3) | (3) |
Net Carrying Amount | 24.2 | 9.7 |
Intangible assets not subject to amortization - trademarks and tradenames | ||
Intangible assets not subject to amortization - trademarks and tradenames | $ 314.5 | $ 315.7 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 42,100,000 | $ 57,400,000 | $ 55,100,000 | |
Future amortization expense | ||||
Expected amortization expense, 2018 | 32,200,000 | |||
Expected amortization expense, 2019 | 32,000,000 | |||
Expected amortization expense, 2020 | 31,800,000 | |||
Expected amortization expense, 2021 | 30,400,000 | |||
Expected amortization expense, 2022 | 26,100,000 | |||
Goodwill and intangible asset impairment | $ 0 | |||
Cumulative goodwill impairment charges | $ 323,400,000 | 323,400,000 | ||
Patents | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average useful life of intangible assets acquired | 10 years | |||
Future amortization expense | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 200,000 | |||
Tradenames | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average useful life of intangible assets acquired | 15 years | |||
Customer relationships (including distribution network) | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted-average useful life of intangible assets acquired | 16 years | |||
Future amortization expense | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 300,000 | |||
Tradenames | ||||
Future amortization expense | ||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 10,400,000 |
Other Current Liabilities - Sc
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 127.4 | $ 124.4 |
Customer advances | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 10.9 | 8.3 |
Sales rebates | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 25.5 | 28.2 |
Commissions | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 6.3 | 7.9 |
Restructuring and other similar charges | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 12 | 10.8 |
Product warranty | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 7.5 | 6.8 |
Risk management | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 8.9 | 9.9 |
Legal and environmental | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 4.4 | 4.6 |
Taxes, other than income taxes | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 10.5 | 6.6 |
Income taxes payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 17.8 | 15 |
Interest payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 5.7 | 5.6 |
Other | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 17.9 | $ 20.7 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 1,622.7 | $ 1,920.1 |
Less current maturities | 16.5 | 20.2 |
Long-term debt | 1,606.2 | 1,899.9 |
Term loans | Credit Facility | ||
Debt Instrument [Line Items] | ||
Total | 1,584.5 | 1,881 |
Unamortized original issue discount | 17.9 | 20.2 |
Other subsidiary debt | Other | ||
Debt Instrument [Line Items] | ||
Total | 38.2 | 39.1 |
Unamortized original issue discount | $ 0.5 | $ 0.6 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 43 Months Ended | |||||
Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)prepayment | Mar. 31, 2017USD ($)Rate | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2013USD ($)plantRate | Mar. 31, 2012USD ($)plant | Mar. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 100,000,000 | $ 100,000,000 | |||||||
Number of voluntary prepayments | prepayment | 2 | ||||||||
Loss on extinguishment of debt | 7,800,000 | $ 0 | $ 0 | ||||||
Amortization of deferred financing costs | 2,400,000 | 2,000,000 | 2,100,000 | ||||||
Long-term debt, gross | 1,641,100,000 | 1,641,100,000 | |||||||
Outstanding principal | $ 1,622,700,000 | 1,920,100,000 | $ 1,622,700,000 | ||||||
Line of credit facility, unused capacity, daily aggregate commitment threshold of outstanding principal (less than) | 50.00% | ||||||||
Interest paid | $ 84,900,000 | 87,700,000 | $ 84,100,000 | ||||||
North America | Manufacturing Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of plants | plant | 2 | 2 | |||||||
Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused capacity, commitment fee percentage | 0.50% | ||||||||
Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Unused capacity, commitment fee percentage | 0.375% | ||||||||
London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Term loans | Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Covenant terms, company's ratio | 3.33 | 3.33 | |||||||
Outstanding principal | $ 1,584,500,000 | 1,881,000,000 | $ 1,584,500,000 | ||||||
Unamortized original issue discount | $ 17,900,000 | $ 20,200,000 | $ 17,900,000 | ||||||
Term loans | Credit Facility | Senior Secured Leverage Ratio (Numerator) | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Covenant terms, positive ratio | 6.75 | 7.75 | 6.75 | ||||||
Term loans | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,950,000,000 | $ 1,950,000,000 | |||||||
Long-term debt, voluntary prepayment | $ 195,000,000 | $ 95,000,000 | $ 290,000,000 | ||||||
Loss on extinguishment of debt | 2,400,000 | ||||||||
Mandatory principal payments prior to maturity | 100,400,000 | $ 100,400,000 | |||||||
Periodic payment, principal | $ 4,000,000 | ||||||||
Net first lien leverage ratio (less than) | 1.5 | 1.5 | |||||||
Reduction of basis spread on variable rate | 1.00% | ||||||||
Term loans | Term Loan Facility | ABR Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | Rate | 2.00% | ||||||||
Term loans | Term Loan Facility | Eurocurrency Borrowings | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | Rate | 3.00% | ||||||||
Term loans | Term Loan Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 3.00% | ||||||||
Term loans | Term Loan Facility and Term Refinancing Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Loss on extinguishment of debt | $ 7,800,000 | ||||||||
Term loans | Term Refinancing Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 1,606,400,000 | $ 1,606,400,000 | |||||||
Amortization of deferred financing costs | 5,400,000 | ||||||||
Direct costs | $ 4,100,000 | $ 4,100,000 | |||||||
Average interest rate | 3.88% | 3.88% | |||||||
LIBOR floor | 1.00% | 1.00% | |||||||
Average interest rate, period loan been in place | 3.77% | ||||||||
Effective interest rate | 3.75% | 3.75% | |||||||
Term loans | Term Refinancing Loan Facility | London Interbank Offered Rate (LIBOR) | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 2.75% | 2.75% | |||||||
Term loans | Term Refinancing Loan Facility | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.75% | ||||||||
Term loans | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 265,000,000 | $ 265,000,000 | |||||||
Covenant terms, company's ratio | 3.33 | 3.33 | |||||||
Unused capacity, commitment fee percentage | Rate | 0.50% | ||||||||
Long-term debt, gross | $ 0 | $ 0 | $ 0 | ||||||
Outstanding letters of credit | 14,600,000 | 21,100,000 | 14,600,000 | ||||||
Term loans | Revolving Credit Facility | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 60,000,000 | 80,000,000 | 60,000,000 | ||||||
Term loans | Amended Credit Facility | Senior Secured Leverage Ratio (Numerator) | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Transaction related costs | 2,200,000 | 2,200,000 | |||||||
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 | ||||||||
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 (up to) | $ 9,800,000 | ||||||||
Loans receivables | 27,600,000 | 27,600,000 | $ 27,600,000 | 27,600,000 | |||||
Outstanding principal | 36,900,000 | 36,900,000 | 36,900,000 | ||||||
Other | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | 1,400,000 | 2,300,000 | 1,400,000 | ||||||
Other | Other | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding principal | 38,200,000 | 39,100,000 | 38,200,000 | ||||||
Unamortized original issue discount | 500,000 | 600,000 | 500,000 | ||||||
Accounts Receivable Securitization Program | Other | |||||||||
Debt Instrument [Line Items] | |||||||||
Long-term debt, gross | 0 | 0 | 0 | ||||||
Outstanding letters of credit | 4,600,000 | $ 0 | 4,600,000 | ||||||
Remaining borrowing capacity | $ 100,000,000 | $ 100,000,000 |
Long-Term Debt - Future Debt Ma
Long-Term Debt - Future Debt Maturities (Details) $ in Millions | Mar. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
Unamortized original issue discount and debt issuance costs | $ 18.4 |
Maturities of Long-term Debt [Abstract] | |
2,018 | 16.5 |
2,019 | 16.4 |
2,020 | 30.3 |
2,021 | 16.4 |
2,022 | 16.1 |
Thereafter | 1,545.4 |
Long-term debt, gross | $ 1,641.1 |
Derivative Financial Instrume71
Derivative Financial Instruments - Narrative (Details) | Oct. 24, 2014USD ($)derivative | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Sep. 28, 2015USD ($)derivative |
Derivatives, Fair Value [Line Items] | |||||
Effectiveness of hedge | 87.00% | ||||
Amount reclassified from accumulated other comprehensive loss into earnings | $ 10,200,000 | $ 5,200,000 | $ 0 | ||
Estimated reclassification of accumulated other comprehensive gain (loss) | (10,300,000) | ||||
Designated as hedging instruments | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, net hedge ineffectiveness gain (loss) | $ 0 | ||||
Maximum | |||||
Derivatives, Fair Value [Line Items] | |||||
Weighted average interest rate (cannot exceed) | 2.79% | ||||
London Interbank Offered Rate (LIBOR) | |||||
Derivatives, Fair Value [Line Items] | |||||
Applicable margin | 2.75% | ||||
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 |
Derivative Financial Instrume72
Derivative Financial Instruments - Fair Value of Derivative Instruments (Details) - Fair Value, Measurements, Recurring - Level 2 - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Designated as hedging instruments | Interest rate swaps | Other liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 10.3 | $ 21.8 |
Designated as hedging instruments | Interest rate caps | Other assets | ||
Derivative [Line Items] | ||
Asset Derivatives | 0 | 0.3 |
Not designated as hedging instrument | Foreign currency forward contracts | Other current liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 0.1 | $ 0.9 |
Derivative Financial Instrume73
Derivative Financial Instruments - Amount of Losses and Gains on Derivative Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Foreign currency forward contracts | Other (expense) income, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount recognized in other (expense) income, net | $ 0.3 | $ 0 | $ 0.5 |
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 | 6.4 | 13.5 | |
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 | $ 3.1 | $ 3.4 |
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, 2017 | Mar. 31, 2016 |
Assets: | ||
Total assets at fair value | $ 0 | $ 0.3 |
Liabilities: | ||
Total liabilities at fair value | 10.4 | 22.7 |
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 | 0.3 |
Liabilities: | ||
Total liabilities at fair value | 10.4 | 22.7 |
Level 3 | ||
Assets: | ||
Total assets at fair value | 0 | 0 |
Liabilities: | ||
Total liabilities at fair value | 0 | 0 |
Interest rate caps | ||
Assets: | ||
Interest rate caps | 0 | 0.3 |
Interest rate caps | Level 1 | ||
Assets: | ||
Interest rate caps | 0 | 0 |
Interest rate caps | Level 2 | ||
Assets: | ||
Interest rate caps | 0 | 0.3 |
Interest rate caps | Level 3 | ||
Assets: | ||
Interest rate caps | 0 | 0 |
Interest rate swaps | ||
Liabilities: | ||
Interest rate swaps | 10.3 | 21.8 |
Interest rate swaps | Level 1 | ||
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Interest rate swaps | Level 2 | ||
Liabilities: | ||
Interest rate swaps | 10.3 | 21.8 |
Interest rate swaps | Level 3 | ||
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Foreign currency forward contracts | ||
Liabilities: | ||
Foreign currency forward contracts | 0.1 | 0.9 |
Foreign currency forward contracts | Level 1 | ||
Liabilities: | ||
Foreign currency forward contracts | 0 | 0 |
Foreign currency forward contracts | Level 2 | ||
Liabilities: | ||
Foreign currency forward contracts | 0.1 | 0.9 |
Foreign currency forward contracts | Level 3 | ||
Liabilities: | ||
Foreign currency forward contracts | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of long-term debt | $ 1,644.6 | $ 1,913.2 |
Property, plant and equipment, net | 400.9 | 397.2 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets to be sold per agreement | 3.4 | |
Facility Closing | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, plant and equipment, net | $ 7 | $ 5.3 |
Leases - Narrative and Schedul
Leases - Narrative and Schedule of Future Payments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Leases [Abstract] | |||
Rent expense | $ 20.7 | $ 18.2 | $ 19.4 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,018 | 17.5 | ||
2,019 | 14.7 | ||
2,020 | 12.8 | ||
2,021 | 7.4 | ||
2,022 | 6.7 | ||
Thereafter | 18.2 | ||
Future minimum rental payments | $ 77.3 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) | May 18, 2016 | May 21, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2017 | Jul. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 13,400,000 | $ 7,500,000 | $ 6,400,000 | ||||
Tax benefit on stock-based compensation | 4,700,000 | 2,800,000 | 2,200,000 | ||||
Excess tax benefit related to stock options exercised | 8,300,000 | $ 4,000,000 | $ 5,800,000 | ||||
Unrecognized compensation cost | $ 25,900,000 | $ 25,900,000 | |||||
Unrecognized compensation cost, weighted-average period of recognition | 1 year 11 months 5 days | ||||||
Expected option term (in years) | 6 years 6 months | 6 years 6 months | 7 years 1 month 6 days | ||||
Expected dividends | $ 0 | $ 0 | $ 0 | ||||
Weighted-average grant date fair value (in dollars per share) | $ 6.41 | $ 6.92 | $ 9.21 | ||||
Fair value of options vested | $ 5,800,000 | $ 9,800,000 | $ 1,300,000 | ||||
Restricted Stock Units (RSUs) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs granted (in shares) | 279,445 | 96,952 | 58,883 | ||||
Weighted-average grant date fair value of RSUs granted (in dollars per share) | $ 19.53 | $ 23.20 | $ 29.08 | ||||
Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | 3 years | |||||
RSUs granted (in shares) | 219,266 | 50,711 | |||||
Weighted-average grant date fair value of RSUs granted (in dollars per share) | $ 23.95 | $ 28.57 | |||||
Performance Shares | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 0.00% | ||||||
Performance Shares | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting rights, percentage | 200.00% | ||||||
Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award maximum term | 10 years | ||||||
Percentage vesting after three years | 50.00% | ||||||
Vesting period | 4 years | ||||||
Percentage vesting after five years | 50.00% | ||||||
Shares authorized to be granted (in shares) | 12,150,000 | ||||||
Incentive Plan | 50% vest after three years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Incentive Plan | 50% vest after five years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 5 years | ||||||
Incentive Plan | Options granted to directors | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | 3 years | 3 years |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Options Granted (Details) - USD ($) | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected option term (in years) | 6 years 6 months | 6 years 6 months | 7 years 1 month 6 days |
Expected volatility factor | 29.00% | 24.00% | 26.00% |
Weighted-average risk free interest rate | 1.58% | 1.82% | 2.10% |
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, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2014 | |
Shares | ||||
Outstanding at beginning of period (shares) | 7,854,685 | 8,588,518 | 8,652,834 | |
Granted (shares) | 2,602,014 | 1,072,556 | 1,268,124 | |
Exercised (shares) | (2,116,571) | (1,278,017) | (743,807) | |
Cancelled/Forfeited (shares) | (569,458) | (528,372) | (588,633) | |
Outstanding at end of period (shares) | 7,770,670 | 7,854,685 | 8,588,518 | |
Exercisable at end of period (shares) | 3,221,622 | 4,678,216 | 4,798,457 | |
Weighted Avg. Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 15.10 | $ 13.04 | $ 10.79 | |
Granted (in dollars per share) | $ 19.72 | 24.14 | 28.30 | |
Exercised (in dollars per share) | 5.18 | 5.55 | 5.85 | |
Canceled/Forfeited (in dollars per share) | 23.34 | 23.53 | 21.65 | |
Outstanding at end of period (in dollars per share) | 18.73 | 15.10 | 13.04 | |
Exercisable at end of period (in dollars per share) | $ 15.25 | $ 9.52 | $ 5.67 | |
Total intrinsic value of options exercised | $ 29.1 | $ 16.3 | $ 16.7 | |
Weighted average remaining contractual life of options outstanding | 6 years 7 months 6 days | 5 years | 5 years | |
Aggregate intrinsic value of options outstanding | $ 40.3 | |||
Weighted average remaining contractual life of options exercisable | 4 years 7 months 6 days | 3 years | 2 years 7 months | |
Aggregate intrinsic value of options exercisable | $ 27.9 |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Options (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Shares | |||
Nonvested options beginning of period (shares) | 3,176,469 | ||
Granted (shares) | 2,602,014 | 1,072,556 | 1,268,124 |
Vested (shares) | (749,416) | ||
Canceled/Forfeited (shares) | (480,019) | ||
Nonvested options end of period (shares) | 4,549,048 | 3,176,469 | |
Weighted Avg. Exercise Price | |||
Non-vested options at beginning of period (in dollars per share) | $ 23.30 | ||
Granted (in dollars per share) | 19.72 | $ 24.14 | $ 28.30 |
Vested (in dollars per share) | 23.69 | ||
Canceled/Forfeited (in dollars per share) | 23.14 | ||
Non-vested options at end of period (in dollars per share) | $ 21.20 | $ 23.30 |
Stock-Based Compensation - No81
Stock-Based Compensation - Nonvested Stock Unit Activity (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Restricted Stock Units (RSUs) | |||
Units | |||
Nonvested units beginning of period (shares) | 125,307 | 53,813 | 0 |
Granted (shares) | 279,445 | 96,952 | 58,883 |
Vested (shares) | (48,207) | (12,866) | 0 |
Canceled/Forfeited (shares) | (34,403) | (12,592) | (5,070) |
Nonvested units end of period (shares) | 322,142 | 125,307 | 53,813 |
Weighted Avg. Grant Date Fair Value | |||
Nonvested units at beginning of period (in dollars per share) | $ 24.67 | $ 29.06 | $ 0 |
Granted (in dollars per share) | 19.53 | 23.20 | 29.08 |
Vested (in dollars per share) | 24.01 | 29.09 | 0 |
Canceled/Forfeited (in dollars per share) | 22 | 27.62 | 29.31 |
Nonvested units at end of period (in dollars per share) | $ 20.59 | $ 24.67 | $ 29.06 |
Performance Shares | |||
Units | |||
Nonvested units beginning of period (shares) | 49,136 | 0 | |
Granted (shares) | 219,266 | 50,711 | |
Vested (shares) | 0 | 0 | |
Canceled/Forfeited (shares) | (8,472) | (1,575) | |
Nonvested units end of period (shares) | 259,930 | 49,136 | 0 |
Weighted Avg. Grant Date Fair Value | |||
Nonvested units at beginning of period (in dollars per share) | $ 28.57 | $ 0 | |
Granted (in dollars per share) | 23.95 | 28.57 | |
Vested (in dollars per share) | 0 | 0 | |
Canceled/Forfeited (in dollars per share) | 25.90 | 0 | |
Nonvested units at end of period (in dollars per share) | $ 24.74 | $ 28.57 | $ 0 |
Stock-Based Compensation - Fa82
Stock-Based Compensation - Fair Value PSUs (Details) - $ / shares | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility factor | 29.00% | 24.00% | 26.00% |
Weighted-average risk-free interest rate | 1.58% | 1.82% | 2.10% |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility factor | 30.00% | 31.00% | |
Weighted-average risk-free interest rate | 0.86% | 1.01% | |
Expected dividend rate | 0.00% | 0.00% | |
PSU fair value per share | $ 27.67 | $ 32.06 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017USD ($)categoryRate | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial (gain) loss on pension and post retirement benefit obligations | $ 2.6 | $ (12.9) | $ (59.4) |
Plan assets | 513 | 503.6 | |
Multi-employer and government-sponsored plans - Expense recognized | 0.2 | 0.2 | 0.2 |
Defined contribution savings plan - expense recognized | 12.4 | 14.2 | 15.2 |
U.S qualified pension plan trusts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Contributions | 4.9 | 4.9 | 7.9 |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial (gain) loss on pension and post retirement benefit obligations | (11.8) | (35.1) | |
Contributions | 8.6 | 8.6 | |
Projected benefit obligation | 665.4 | 674 | 718.8 |
Plan assets | 513 | 503.6 | 543.2 |
Under-funded status | 152.4 | 170.4 | |
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 | $ 658.9 | 665.3 | |
Pension plans that are not fully funded - accumulated benefit obligation | 652.2 | 657.1 | |
Pension plans that are not fully funded - fair value of plan assets | 506.1 | 494.5 | |
Other Postretirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Actuarial (gain) loss on pension and post retirement benefit obligations | (3.7) | (0.7) | |
Contributions | 3.1 | 4 | |
Projected benefit obligation | 25.7 | 29.6 | 32.4 |
Plan assets | 0 | 0 | $ 0 |
Under-funded status | 25.7 | $ 29.6 | |
Future amortization of prior service cost (credit) | $ 1.9 | ||
Assumed health care cost trend rate, percent | Rate | 6.80% | ||
Ultimate health care cost trend rate, percent | Rate | 5.00% |
Retirement Benefits - Pension a
Retirement Benefits - Pension and Other Postretirement Benefits (Details) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017USD ($)facility | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($)participant | |
(Income) cost associated with special events: | |||
Inactive participants | participant | 4,500 | ||
Amount paid to electing participants | $ 65 | ||
Non-cash actuarial gain (loss) | (6.5) | ||
Pension Benefits | |||
Pension Benefits and Other Postretirement Benefits: | |||
Service cost | $ 1.8 | $ 2.2 | 1.4 |
Interest cost | 25.7 | 25.5 | 30 |
Expected return on plan assets | (27.1) | (28.8) | (29.8) |
Amortization of: | |||
Prior service cost | 0.1 | 0.1 | 0.2 |
(Income) cost associated with special events: | |||
Settlement | 0 | 0 | 6.5 |
Curtailment | (1.4) | 0 | 0 |
Contractual termination benefits | 2.2 | 0 | 0 |
Recognition of actuarial losses | 0 | 13 | 51.7 |
Net periodic benefit cost | 1.3 | 12 | 60 |
Recognized curtailments gain (loss) | 1.4 | 0 | 0 |
Noncash net curtailment gain | $ 1 | ||
Number of manufacturing facilities closed | facility | 1 | ||
Postretirement Benefits | |||
Pension Benefits and Other Postretirement Benefits: | |||
Service cost | $ 0.1 | 0.1 | 0.1 |
Interest cost | 1.1 | 1.2 | 1.3 |
Amortization of: | |||
Prior service cost | (2) | (2) | (1.9) |
(Income) cost associated with special events: | |||
Curtailment | 0.4 | 0 | 0 |
Contractual termination benefits | 0 | 0 | |
Recognition of actuarial losses | (1.6) | (0.1) | 1.2 |
Net periodic benefit cost | (2) | (0.8) | 0.7 |
Recognized curtailments gain (loss) | (0.4) | $ 0 | $ 0 |
Facility Closing | Pension Benefits | |||
(Income) cost associated with special events: | |||
Curtailment | 0.4 | ||
Recognized curtailments gain (loss) | $ (0.4) |
Retirement Benefits - Status of
Retirement Benefits - Status of Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Actuarial gains | $ (2.6) | $ 12.9 | $ 59.4 |
Plan assets at the beginning of the period | 503.6 | ||
Plan assets at end of period | 513 | 503.6 | |
Net amount on Consolidated Balance Sheets consists of: | |||
Current liabilities | (4.3) | (5) | |
Long-term liabilities | (174.4) | (195.5) | |
Pension Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefit obligation at beginning of period | (674) | (718.8) | |
Service cost | (1.8) | (2.2) | (1.4) |
Interest cost | (25.7) | (25.5) | (30) |
Actuarial gains | 11.8 | 35.1 | |
Benefits paid | 39.8 | 38.8 | |
Plan participant contributions | (0.3) | (0.4) | |
Acquisition | (18.3) | 0 | |
Contractual termination benefits | (2.2) | 0 | 0 |
Curtailments | 2.5 | 0 | |
Translation adjustment | 2.8 | (1) | |
Benefit obligation at end of period | (665.4) | (674) | (718.8) |
Plan assets at the beginning of the period | 503.6 | 543.2 | |
Actual return on plan assets | 26.6 | (9.5) | |
Contributions | 8.6 | 8.6 | |
Benefits paid | (39.8) | (38.8) | |
Acquisition | 14.9 | 0 | |
Translation adjustment | (0.9) | 0.1 | |
Plan assets at end of period | 513 | 503.6 | 543.2 |
Funded status of plans | (152.4) | (170.4) | |
Net amount on Consolidated Balance Sheets consists of: | |||
Non-current assets | 0.6 | 0.5 | |
Current liabilities | (2.2) | (2.4) | |
Long-term liabilities | (150.8) | (168.5) | |
Total net funded status | (152.4) | (170.4) | |
Postretirement Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Benefit obligation at beginning of period | (29.6) | (32.4) | |
Service cost | (0.1) | (0.1) | (0.1) |
Interest cost | (1.1) | (1.2) | (1.3) |
Actuarial gains | 3.7 | 0.7 | |
Benefits paid | 3.1 | 4 | |
Plan participant contributions | (0.6) | (0.6) | |
Acquisition | 0 | 0 | |
Contractual termination benefits | 0 | 0 | |
Curtailments | (1.1) | 0 | |
Translation adjustment | 0 | 0 | |
Benefit obligation at end of period | (25.7) | (29.6) | (32.4) |
Plan assets at the beginning of the period | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Contributions | 3.1 | 4 | |
Benefits paid | (3.1) | (4) | |
Acquisition | 0 | 0 | |
Translation adjustment | 0 | 0 | |
Plan assets at end of period | 0 | 0 | $ 0 |
Funded status of plans | (25.7) | (29.6) | |
Net amount on Consolidated Balance Sheets consists of: | |||
Non-current assets | 0 | 0 | |
Current liabilities | (2.1) | (2.6) | |
Long-term liabilities | (23.6) | (27) | |
Total net funded status | $ (25.7) | $ (29.6) |
Retirement Benefits - Accumulat
Retirement Benefits - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service credit | $ (3.2) | $ (5) |
Unrecognized actuarial loss (gain) | 48.6 | 62.5 |
Accumulated other comprehensive loss (income), gross | 45.4 | 57.5 |
Deferred income tax (benefit) provision | (17.2) | (21.9) |
Accumulated other comprehensive loss (income), net | 28.2 | 35.6 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service credit | (0.1) | 0.1 |
Unrecognized actuarial loss (gain) | 49.4 | 61.9 |
Accumulated other comprehensive loss (income), gross | 49.3 | 62 |
Deferred income tax (benefit) provision | (18.7) | (23.6) |
Accumulated other comprehensive loss (income), net | 30.6 | 38.4 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service credit | (3.1) | (5.1) |
Unrecognized actuarial loss (gain) | (0.8) | 0.6 |
Accumulated other comprehensive loss (income), gross | (3.9) | (4.5) |
Deferred income tax (benefit) provision | 1.5 | 1.7 |
Accumulated other comprehensive loss (income), net | $ (2.4) | $ (2.8) |
Retirement Benefits - Significa
Retirement Benefits - Significant Assumptions (Details) | 12 Months Ended | ||
Mar. 31, 2017Rate | Mar. 31, 2016Rate | Mar. 31, 2015Rate | |
Pension Benefits | |||
Benefit Obligations: | |||
Discount rate | 3.85% | 3.84% | 3.70% |
Rate of compensation increase | 2.96% | 3.07% | 3.40% |
Net Periodic Benefit Cost: | |||
Discount rate | 3.84% | 3.70% | 4.54% |
Rate of compensation increase | 2.96% | 3.40% | 3.41% |
Expected return on plan assets | 5.34% | 5.33% | 5.30% |
Postretirement Benefits | |||
Benefit Obligations: | |||
Discount rate | 4.00% | 3.90% | 3.80% |
Net Periodic Benefit Cost: | |||
Discount rate | 3.90% | 3.80% | 4.30% |
Retirement Benefits - Target In
Retirement Benefits - Target Investment Allocations (Details) | 12 Months Ended | |
Mar. 31, 2017Rate | Mar. 31, 2016Rate | |
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 | 30.00% | 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 | 64.00% | 66.00% |
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% | 6.00% |
Retirement Benefits - Fair Valu
Retirement Benefits - Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 513 | $ 503.6 | |
Assets measured at net asset value | 472.6 | 479.3 | |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 16.5 | 1.7 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23.9 | 22.6 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.5 | 6.6 | |
Assets measured at net asset value | 4.5 | 4.9 | |
Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 1.7 | |
Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
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 | 326.3 | 328.8 | |
Assets measured at net asset value | 317.5 | 328.8 | |
Fixed income funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.8 | 0 | |
Fixed income funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
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 | 68.9 | 63.7 | |
Assets measured at net asset value | 65.2 | 63.7 | |
US equity funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3.7 | 0 | |
US equity funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
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 | 40.5 | 35.3 | |
Assets measured at net asset value | 38.5 | 35.3 | |
International equity funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 0 | |
International equity funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
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] | |||
Assets measured at net asset value | 9.3 | 9.1 | |
Alternative Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37.6 | 37.5 | |
Assets measured at net asset value | 37.6 | 37.5 | |
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 | 0 | 0 | |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 23.9 | 22.6 | |
Assets measured at net asset value | 0 | 0 | |
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 | $ 23.9 | $ 22.6 | $ 23.4 |
Retirement Benefits - Changes i
Retirement Benefits - Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | $ 503.6 | |
Actual return on assets: | ||
Plan assets at end of period | 513 | $ 503.6 |
Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 22.6 | |
Actual return on assets: | ||
Plan assets at end of period | 23.9 | 22.6 |
Insurance Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 22.6 | |
Actual return on assets: | ||
Plan assets at end of period | 23.9 | 22.6 |
Insurance Contracts | Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 22.6 | 23.4 |
Actual return on assets: | ||
Related to assets held at reporting date | 1.3 | (0.8) |
Related to assets sold during the period | 0 | 0 |
Purchases, sales, issuances and settlements | 0 | 0 |
Plan assets at end of period | $ 23.9 | $ 22.6 |
Retirement Benefits - Expected
Retirement Benefits - Expected Future Benefit Payments (Details) $ in Millions | Mar. 31, 2017USD ($) |
Pension Benefits: | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 41.3 |
2,019 | 41.3 |
2,020 | 41 |
2,021 | 41 |
2,022 | 40.9 |
2023-2027 | 201.7 |
Other Postretirement Benefits: | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 2.2 |
2,019 | 2.6 |
2,020 | 2.6 |
2,021 | 2.5 |
2,022 | 2.3 |
2023-2027 | $ 8.3 |
Retirement Benefits - Assumed H
Retirement Benefits - Assumed Health Care Cost Trend (Details) - Other Postretirement Benefits: - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 2.1 | 2.6 | 2.9 |
One percentage point decrease - increase (decrease) in postretirement benefit obligation | $ (1.8) | $ (2.2) | $ (2.5) |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Current: | |||
United States | $ 12.1 | $ 24 | $ 17.2 |
Non-United States | 20.3 | 15.3 | 15.6 |
State and local | 2.2 | 3.9 | 4.7 |
Total current | 34.6 | 43.2 | 37.5 |
Deferred: | |||
United States | (18) | (10.2) | (8.2) |
Non-United States | (6.8) | 1.1 | (10.5) |
State and local | (1.9) | (17) | (2) |
Total deferred | (26.7) | (26.1) | (20.7) |
Provision for income taxes | $ 7.9 | $ 17.1 | $ 16.8 |
Income Taxes - U.S. Statutory I
Income Taxes - U.S. Statutory Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Provision for income taxes at U.S. federal statutory income tax rate | $ 28.7 | $ 30.1 | $ 37.9 |
State and local income taxes, net of federal benefit | 0.8 | 2.7 | 2.6 |
Net effects of foreign rate differential | (1.3) | (3) | (3.3) |
Net effects of foreign operations | (4.4) | (2.1) | 8.9 |
Net effect to deferred taxes for changes in tax rates | (0.3) | (0.8) | 0.2 |
Unrecognized tax benefits, net of federal benefit | 0.5 | (11.3) | (0.5) |
Domestic production activities deduction | (2.7) | (1.3) | (2.3) |
Research and development credit | (7.6) | 0 | 0 |
Excess tax benefits related to equity compensation | (7) | 0 | 0 |
Change in valuation allowance | 0.5 | 2.3 | (27.4) |
Other | 0.7 | 0.5 | 0.7 |
Provision for income taxes | $ 7.9 | $ 17.1 | $ 16.8 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
United States | $ 50.4 | $ 45.3 | $ 89.9 |
Non-United States | 31.6 | 40.7 | 18.7 |
Income from continuing operations before income taxes | $ 82 | $ 86 | $ 108.6 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Deferred tax assets: | ||
Compensation and retirement benefits | $ 79.9 | $ 84.4 |
General accruals and reserves | 18.1 | 18.3 |
State tax net operating loss carryforwards | 19.2 | 19.6 |
Foreign tax credit carryforwards | 0 | 4.3 |
Foreign net operating loss and interest carryforwards | 22.5 | 17.7 |
Other | 7.9 | 14.5 |
Total deferred tax assets before valuation allowance | 147.6 | 158.8 |
Valuation allowance | (27.7) | (27.2) |
Total deferred tax assets | 119.9 | 131.6 |
Deferred tax liabilities: | ||
Property, plant and equipment | 39.9 | 42.8 |
Inventories | 31.5 | 30.1 |
Intangible assets and goodwill | 217.5 | 197.7 |
Cancellation of indebtedness | 27.6 | 43.4 |
Total deferred tax liabilities | 316.5 | 314 |
Net deferred tax liabilities | 196.6 | 182.4 |
Net amount on Consolidated Balance Sheet consists of: | ||
Other assets | 12.2 | 3.6 |
Deferred income taxes | (208.8) | (186) |
Net long-term deferred tax liabilities | $ (196.6) | $ (182.4) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $ 13.2 | $ 21.7 |
Additions based on tax positions related to the current year | 0.8 | 0.8 |
Additions for tax positions of prior years | 2.8 | 1.2 |
Reductions for tax positions of prior years | 0 | (0.1) |
Reductions due to lapse of applicable statute of limitations | (1.7) | (10.3) |
Cumulative translation adjustment | (0.1) | (0.1) |
Balance at end of period | $ 15 | $ 13.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
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 | $ 94.8 | ||
Valuation allowance for foreign NOL carryforward | 9.7 | ||
Undistributed earnings of foreign subsidiaries | 176.5 | ||
Undistributed earnings of foreign subsidiaries, potential related taxes | 5.7 | ||
Other liabilities | 6.9 | $ 13.3 | |
Net cash paid for income taxes | 40 | 46.9 | $ 21.2 |
Liability for unrecognized tax benefits | 18.1 | 15.6 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 4.7 | 3.8 | |
Unrecognized tax benefits, income tax penalties and interest expense (benefit) | 0.6 | (8.6) | $ 0.7 |
Other current liabilities | |||
Operating Loss Carryforwards [Line Items] | |||
Accrued income taxes, current | 17.8 | 15 | |
Other current assets | |||
Operating Loss Carryforwards [Line Items] | |||
Income taxes receivable | 10.9 | $ 1.7 | |
State tax authority | |||
Operating Loss Carryforwards [Line Items] | |||
State tax net operating loss carryforwards | 500.9 | ||
State tax net operating loss carryforwards, valuation allowance | 18 | ||
Foreign Tax Authority | Ministry of Economic Affairs and Finance, Italy | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax examination, penalties and interest expense | 0.7 | ||
Foreign Tax Authority | Federal Ministry of Finance, Germany | |||
Operating Loss Carryforwards [Line Items] | |||
Income tax examination, penalties and interest expense | $ 0.4 | ||
Minimum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforward period, range | 5 years | ||
Maximum | |||
Operating Loss Carryforwards [Line Items] | |||
State net operating loss carryforward period, range | 20 years |
Commitments and Contingencies
Commitments and Contingencies - Narrative (Details) | 12 Months Ended | |||
Mar. 31, 2017USD ($)lawsuitclaimantRate | Mar. 31, 2016$ / shares | Mar. 31, 2013USD ($) | Dec. 31, 2002lawsuitreleaseclaimantdefendantRate | |
Loss Contingencies [Line Items] | ||||
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 25.76 | |||
Indemnity obligations (in excess of) | $ 900,000,000 | |||
Available insurance coverage | 242,900,000 | |||
Layer 1 | ||||
Loss Contingencies [Line Items] | ||||
Available insurance coverage | $ 166,900,000 | |||
Environmental Issue | Ellsworth Industrial Park Site | ||||
Loss Contingencies [Line Items] | ||||
Number of defendants (at least) | defendant | 10 | |||
Number of releases, or threatened releases, chlorinated solvents (or more) | release | 1 | |||
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 | 18,000 | |||
Number of pending lawsuits | lawsuit | 7,000 | |||
Timeframe of estimated claims disbursements | 10 years | |||
Estimate of potential liability | $ 37,000,000 | |||
Amount expected to be paid by insurance providers | 28,000,000 | |||
Increase in estimate of potential liability | 5,000,000 | |||
Receivable from insurance carriers | $ 37,000,000 | |||
Damages from Product Defects | Zurn | ||||
Loss Contingencies [Line Items] | ||||
Claim settlement funding period | 7 years | |||
Settlement amount | $ 20,000,000 |
Public Offering and Common S100
Public Offering and Common Stock Repurchases - Narrative (Details) | Dec. 07, 2016USD ($)$ / sharesshares | Mar. 31, 2017USD ($)shares | Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($)shares |
Treasury stock acquired, average cost per share (in dollars per share) | $ / shares | $ 25.76 | |||
Credit Facility | Term loans | ||||
Payments of debt extinguishment costs | $ 195,000,000 | |||
Depositary Shares | ||||
Shares issued (in shares) | shares | 8,050,000 | |||
Preferred stock, conversion ratio | 0.05 | |||
Redeemable Convertible Preferred Stock | ||||
Shares issued (in shares) | shares | 402,500 | 402,500 | 0 | |
Dividend rate, percentage | 5.75% | 5.75% | ||
Offering price (in dollars per share) | $ / shares | $ 50 | |||
Liquidation preference per share (in dollars per share) | $ / shares | $ 1,000 | |||
Proceeds from issuance of convertible preferred stock | $ 389,700,000 | |||
Accrued dividends | $ 7,300,000 | |||
Cash dividends paid | 4,400,000 | |||
Dividends in arrears | $ 0 | |||
Redeemable Convertible Preferred Stock | Minimum | ||||
Shares issued upon conversion (in shares) | shares | 39.7020 | |||
Redeemable Convertible Preferred Stock | Maximum | ||||
Shares issued upon conversion (in shares) | shares | 47.6420 | |||
Common Stock | ||||
Stock repurchase program, authorized amount (up to) | $ 200,000,000 | |||
Stock repurchased during period, shares (in shares) | shares | 0 | 1,552,500 | 0 | |
Stock repurchased during period, value | $ 40,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 160,000,000 |
Business Segment Information -
Business Segment Information - Schedule of Business Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of segments | segment | 2 | ||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | $ 503.6 | $ 451.8 | $ 491 | $ 471.8 | $ 492.6 | $ 460.2 | $ 485.9 | $ 485.1 | $ 1,918.2 | $ 1,923.8 | $ 2,050.2 |
Income (loss) from operations | 183.7 | 174.3 | 203.7 | ||||||||
Non-operating expense: | |||||||||||
Interest expense, net | (88.7) | (91.4) | (87.9) | ||||||||
Loss on the extinguishment of debt | (7.8) | 0 | 0 | ||||||||
Other (expense) income, net | (5.2) | 3.1 | (7.2) | ||||||||
Income from continuing operations before income taxes | 82 | 86 | 108.6 | ||||||||
Provision for income taxes | 7.9 | 17.1 | 16.8 | ||||||||
Net income from continuing operations | 27.4 | 3.2 | 24.6 | 18.9 | 0.8 | 24.3 | 22.6 | 21.2 | 74.1 | 68.9 | 91.8 |
Loss from discontinued operations, net of tax | (1.4) | 0 | 0 | 0 | 0 | (1.4) | (8) | ||||
Net income | (0.6) | 24.3 | 22.6 | 21.2 | 74.1 | 67.5 | 83.8 | ||||
Non-controlling interest loss | (0.2) | (0.1) | 0 | (0.1) | 0 | (0.4) | 0 | ||||
Net income attributable to Rexnord | 74.1 | 67.9 | 83.8 | ||||||||
Dividends on preferred stock | (5.8) | (1.5) | 0 | 0 | (7.3) | 0 | 0 | ||||
Net income attributable to Rexnord common stockholders | 21.6 | $ 1.7 | $ 24.6 | $ 18.9 | (0.4) | $ 24.4 | $ 22.6 | $ 21.3 | 66.8 | 67.9 | 83.8 |
Depreciation and Amortization | 105.4 | 115.4 | 112.2 | ||||||||
Capital Expenditures | 54.5 | 52.1 | 48.8 | ||||||||
Total Assets | 3,539.3 | 3,354.8 | 3,539.3 | 3,354.8 | 3,409.3 | ||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 1,918.2 | 1,923.8 | 2,050.2 | ||||||||
Long-lived Assets | 400.9 | 397.2 | 400.9 | 397.2 | 417.6 | ||||||
United States | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 1,320.3 | 1,306.9 | 1,380 | ||||||||
Long-lived Assets | 267.2 | 276 | 267.2 | 276 | 279.4 | ||||||
Europe | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 332.6 | 370.8 | 374 | ||||||||
Long-lived Assets | 72.2 | 80.5 | 72.2 | 80.5 | 92.1 | ||||||
Rest of World | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 265.3 | 246.1 | 296.2 | ||||||||
Long-lived Assets | 61.5 | 40.7 | 61.5 | 40.7 | 46.1 | ||||||
Operating Segments | Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 1,134.7 | 1,100.3 | 1,230.2 | ||||||||
Income (loss) from operations | 134.9 | 146.8 | 219.6 | ||||||||
Non-operating expense: | |||||||||||
Depreciation and Amortization | 69.9 | 77.3 | 74.1 | ||||||||
Capital Expenditures | 42 | 43.6 | 37.7 | ||||||||
Total Assets | 2,671.4 | 2,412.7 | 2,671.4 | 2,412.7 | 2,419 | ||||||
Operating Segments | Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 783.5 | 823.5 | 820 | ||||||||
Income (loss) from operations | 85.1 | 72.8 | 79 | ||||||||
Non-operating expense: | |||||||||||
Depreciation and Amortization | 35.5 | 38.1 | 38.1 | ||||||||
Capital Expenditures | 12.5 | 8.5 | 11.1 | ||||||||
Total Assets | 862.3 | 933.2 | 862.3 | 933.2 | 981.9 | ||||||
Corporate | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Income (loss) from operations | (36.3) | (45.3) | (94.9) | ||||||||
Non-operating expense: | |||||||||||
Total Assets | $ 5.6 | $ 8.9 | 5.6 | 8.9 | 8.4 | ||||||
Original equipment manufacturers/ end-users | Operating Segments | Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 594.6 | 572.3 | 642.1 | ||||||||
Maintenance, repair, and operations | Operating Segments | Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 540.1 | 528 | 588.1 | ||||||||
Water safety, quality, flow control and conservation | Operating Segments | Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 538.9 | 534.1 | 517.1 | ||||||||
Water infrastructure | Operating Segments | Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | $ 244.6 | $ 289.4 | $ 302.9 |
Quarterly Results of Operati102
Quarterly Results of Operations (unaudited) - Schedule of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 503.6 | $ 451.8 | $ 491 | $ 471.8 | $ 492.6 | $ 460.2 | $ 485.9 | $ 485.1 | $ 1,918.2 | $ 1,923.8 | $ 2,050.2 |
Gross profit | 175.6 | 153 | 174 | 165.4 | 167.8 | 158.3 | 169.3 | 169.8 | 668 | 665.2 | 746.2 |
Net income from continuing operations | 27.4 | 3.2 | 24.6 | 18.9 | 0.8 | 24.3 | 22.6 | 21.2 | 74.1 | 68.9 | 91.8 |
Loss from discontinued operations, net of tax | (1.4) | 0 | 0 | 0 | 0 | (1.4) | (8) | ||||
Net income | (0.6) | 24.3 | 22.6 | 21.2 | 74.1 | 67.5 | 83.8 | ||||
Non-controlling interest (loss) income | (0.2) | (0.1) | 0 | (0.1) | 0 | (0.4) | 0 | ||||
Dividends on preferred stock | (5.8) | (1.5) | 0 | 0 | (7.3) | 0 | 0 | ||||
Net income attributable to Rexnord common stockholders | $ 21.6 | $ 1.7 | $ 24.6 | $ 18.9 | $ (0.4) | $ 24.4 | $ 22.6 | $ 21.3 | $ 66.8 | $ 67.9 | $ 83.8 |
Basic net income (loss) per share attributable to Rexnord common shareholders: | |||||||||||
Continuing operations (in dollars per share) | $ 0.01 | $ 0.24 | $ 0.23 | $ 0.21 | $ 0.65 | $ 0.69 | $ 0.90 | ||||
Discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | (0.01) | (0.08) | ||||
Net income attributable to Rexnord common shareholders | $ 0.21 | $ 0.02 | $ 0.24 | $ 0.19 | 0 | 0.24 | 0.23 | 0.21 | 0.65 | 0.67 | 0.82 |
Diluted income (loss) per share attributable to Rexnord common shareholders: | |||||||||||
Continuing operations (in dollars per share) | 0.01 | 0.24 | 0.22 | 0.20 | 0.64 | 0.67 | 0.88 | ||||
Discontinued operations (in dollars per share) | (0.01) | 0 | 0 | 0 | 0 | (0.01) | (0.08) | ||||
Net income attributable to Rexnord common shareholders | $ 0.21 | $ 0.02 | $ 0.24 | $ 0.18 | $ 0 | $ 0.24 | $ 0.22 | $ 0.20 | $ 0.64 | $ 0.66 | $ 0.80 |
Schedule II - Valuation and 103
Schedule II - Valuation and Qualifying Accounts - Schedule II (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Valuation allowance for trade and notes receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 8.9 | $ 16.8 | $ 6.4 |
Charged to Costs and Expenses | 0.7 | (6.8) | 10.7 |
Acquired Obligations | 2 | 0 | 0.6 |
Charged to Other Accounts | 0 | (0.1) | (0.4) |
Deductions | (1) | (1) | (0.5) |
Balance at End of Year | 10.6 | 8.9 | 16.8 |
Valuation allowance for excess and obsolete inventory | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 37.6 | 35.7 | 33.8 |
Charged to Costs and Expenses | 7.6 | 9.5 | 5.2 |
Acquired Obligations | 1.3 | 0 | 0.8 |
Charged to Other Accounts | (0.2) | (0.3) | (0.6) |
Deductions | (6.2) | (7.3) | (3.5) |
Balance at End of Year | 40.1 | 37.6 | 35.7 |
Valuation allowance for income taxes | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 27.2 | 25 | 54.4 |
Charged to Costs and Expenses | 4 | 4.2 | 2 |
Acquired Obligations | 0.2 | 0 | 0 |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | (3.7) | (2) | (31.4) |
Balance at End of Year | $ 27.7 | $ 27.2 | $ 25 |