Cover Page
Cover Page - shares | 9 Months Ended | |
Dec. 31, 2019 | Jan. 24, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35475 | |
Entity Registrant Name | REXNORD CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5197013 | |
Entity Address, Address Line One | 511 W. Freshwater Way | |
Entity Address, City or Town | Milwaukee, | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53204 | |
City Area Code | 414 | |
Local Phone Number | 643-3739 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 121,809,025 | |
Entity Central Index Key | 0001439288 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --03-31 | |
Common stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, $.01 par value | |
Trading Symbol | RXN | |
Security Exchange Name | NYSE | |
Redeemable Convertible Preferred Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/20th interest in a share of 5.75% Series A Mandatory Convertible Preferred Stock, $.01 par value | |
Trading Symbol | RXN.PRA | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 277 | $ 292.5 |
Receivables, net | 283.1 | 334.3 |
Inventories | 349.3 | 316.5 |
Income tax receivable | 11.2 | 3.3 |
Other current assets | 48 | 36.3 |
Total current assets | 968.6 | 982.9 |
Property, plant and equipment, net | 372.8 | 383 |
Intangible assets, net | 492.5 | 511.5 |
Goodwill | 1,311.4 | 1,299.7 |
Other assets | 116.3 | 82.6 |
Total assets | 3,261.6 | 3,259.7 |
Current liabilities: | ||
Current maturities of debt | 1.4 | 1.2 |
Trade payables | 178.4 | 191.7 |
Compensation and benefits | 47.4 | 63.7 |
Current portion of pension and postretirement benefit obligations | 3.3 | 3.3 |
Other current liabilities | 116.8 | 137.1 |
Total current liabilities | 347.3 | 397 |
Long-term debt | 1,147.2 | 1,236.8 |
Pension and postretirement benefit obligations | 150.5 | 158 |
Deferred income taxes | 130.2 | 125.9 |
Other liabilities | 118.2 | 111 |
Total liabilities | 1,893.4 | 2,028.7 |
Stockholders' equity: | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued and outstanding: 121,855,827 at December 31, 2019 and 104,842,299 at March 31, 2019 | 1.2 | 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: 0 at December 31, 2019 and 402,500 at March 31, 2019 | 0 | 0 |
Additional paid-in capital | 1,320.9 | 1,293.5 |
Retained earnings | 147.9 | 30.7 |
Accumulated other comprehensive loss | (104.4) | (96.6) |
Total Rexnord stockholders' equity | 1,365.6 | 1,228.6 |
Non-controlling interest | 2.6 | 2.4 |
Total stockholders' equity | 1,368.2 | 1,231 |
Total liabilities and stockholders' equity | $ 3,261.6 | $ 3,259.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | 9 Months Ended | |
Dec. 31, 2019 | Mar. 31, 2019 | |
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) | 121,855,827 | 104,842,299 |
Shares outstanding (in shares) | 121,855,827 | 104,842,299 |
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) | 0 | |
Shares outstanding (in shares) | 0 | 402,500 |
Dividend rate, percentage | 5.75% | |
Common Stock | ||
Shares issued (in shares) | 402,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Net sales | $ 491.7 | $ 485 | $ 1,521.3 | $ 1,513.4 |
Cost of sales | 300 | 300.7 | 919.8 | 930.4 |
Gross profit | 191.7 | 184.3 | 601.5 | 583 |
Selling, general and administrative expenses | 101.7 | 102.4 | 320 | 323.8 |
Restructuring and other similar charges | 3.6 | 2.6 | 8.9 | 9.4 |
Amortization of intangible assets | 8.8 | 8.4 | 26.3 | 25.4 |
Income from operations | 77.6 | 70.9 | 246.3 | 224.4 |
Non-operating expense: | ||||
Interest expense, net | (14.4) | (16.8) | (45.2) | (54.1) |
(Loss) gain on the extinguishment of debt | (2.2) | 5 | 1 | 5 |
Other income (expense), net | 0.8 | 1.6 | (1) | 3.3 |
Income before income taxes | 61.8 | 60.7 | 201.1 | 178.6 |
Provision for income taxes | (13.4) | (9.1) | (47.7) | (40.8) |
Equity method investment income | 0 | 1.3 | 0.2 | 3.5 |
Net income from continuing operations | 48.4 | 52.9 | 153.6 | 141.3 |
Loss from discontinued operations, net of tax | 0 | (27.8) | (1.8) | (154.3) |
Net income (loss) | 48.4 | 25.1 | 151.8 | (13) |
Non-controlling interest (loss) income | (0.1) | (0.3) | 0.2 | (0.1) |
Net income (loss) attributable to Rexnord | 48.5 | 25.4 | 151.6 | (12.9) |
Dividends on preferred stock | (2.8) | (5.8) | (14.4) | (17.4) |
Net income (loss) attributable to Rexnord common stockholders | $ 45.7 | $ 19.6 | $ 137.2 | $ (30.3) |
Basic net income (loss) per share attributable to Rexnord common stockholders: | ||||
Continuing operations (in dollars per share) | $ 0.40 | $ 0.45 | $ 1.28 | $ 1.19 |
Discontinued operations (in dollars per share) | 0 | (0.27) | (0.02) | (1.48) |
Net income (loss) (in dollars per share) | 0.40 | 0.19 | 1.27 | (0.29) |
Diluted net income (loss) per share attributable to Rexnord common stockholders: | ||||
Continuing operations (in dollars per share) | 0.39 | 0.43 | 1.24 | 1.15 |
Discontinued operations (in dollars per share) | 0 | (0.23) | (0.01) | (1.25) |
Net income (loss) (in dollars per share) | $ 0.39 | $ 0.21 | $ 1.22 | $ (0.10) |
Weighted-average number of shares outstanding (in thousands): | ||||
Basic (in shares) | 113,448 | 104,777 | 108,250 | 104,562 |
Effect of dilutive equity securities (in shares) | 10,235 | 18,268 | 15,560 | 18,773 |
Diluted (in shares) | 123,683 | 123,045 | 123,810 | 123,335 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) attributable to Rexnord | $ 48.5 | $ 25.4 | $ 151.6 | $ (12.9) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 7.3 | (10.4) | (8.2) | (47) |
Reclassification of foreign currency translation adjustments upon sale of business | 0 | 19.7 | 0 | 19.7 |
Net change in unrealized losses on interest rate derivatives, net of tax | 0 | 0 | ||
Net change in unrealized losses on interest rate derivatives, net of tax | 0.3 | 4.3 | ||
Change in pension and postretirement defined benefit plans, net of tax | 0 | (0.2) | 0.4 | 0 |
Other comprehensive income (loss), net of tax | 7.3 | 9.4 | (7.8) | (23) |
Non-controlling interest (loss) income | (0.1) | (0.3) | 0.2 | (0.1) |
Total comprehensive income | $ 55.7 | $ 34.5 | $ 144 | $ (36) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | ||
Net income (loss) | $ 151.8 | $ (13) |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Depreciation | 38 | 44.7 |
Amortization of intangible assets | 26.3 | 25.7 |
Non-cash discontinued operations asset impairment | 0 | 126 |
Non-cash loss on sale of discontinued operations | 0 | 19.7 |
Deferred income taxes | 4.9 | (19.1) |
Other non-cash charges | 1.3 | 6.6 |
Gain on the extinguishment of debt | (1) | (5) |
Stock-based compensation expense | 18.7 | 17.3 |
Changes in operating assets and liabilities: | ||
Receivables | 34.4 | 16.7 |
Inventories | (34.4) | (53.4) |
Other assets | (18.2) | 3 |
Accounts payable | (12.4) | (21) |
Accruals and other | (34.7) | (2.9) |
Cash provided by operating activities | 174.7 | 145.3 |
Investing activities | ||
Expenditures for property, plant and equipment | (25.5) | (26.5) |
Acquisitions, net of cash acquired | (25.1) | (2) |
Proceeds from dispositions of long-lived assets | 2.9 | 3.5 |
Cash dividend from equity method investment | 0 | 1.3 |
Net (payments) proceeds associated with divestiture of discontinued operations | (1.3) | 9 |
Cash used for investing activities | (49) | (14.7) |
Financing activities | ||
Proceeds from borrowings of debt | 725 | 249.8 |
Repayments of debt | (835.3) | (272.7) |
Proceeds from exercise of stock options | 16.8 | 6.6 |
Taxes withheld and paid on employees' share-based payment awards | (7.6) | (3.2) |
Repurchase of common stock | (20) | 0 |
Payments of preferred stock dividends | (17.4) | (17.4) |
Cash used for financing activities | (138.5) | (36.9) |
Effect of exchange rate changes on cash and cash equivalents | (2.7) | (14.2) |
(Decrease) increase in cash and cash equivalents | (15.5) | 79.5 |
Cash, cash equivalents and restricted cash at beginning of period | 292.5 | 217.6 |
Cash, cash equivalents and restricted cash at end of period | $ 277 | $ 297.1 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The unaudited condensed consolidated financial statements included herein have been prepared by Rexnord Corporation (“Rexnord” or the “Company”) in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations for the interim periods. Results for the interim periods are not necessarily indicative of results that may be expected for the fiscal year ending March 31, 2020. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's fiscal 2019 Annual Report on Form 10-K. 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 it the privilege of having long-term, valued relationships with market leaders. The Company operates in a disciplined way and the Rexnord Business System (“RBS”) is its operating philosophy. Grounded in the spirit of continuous improvement, RBS creates a scalable, process-based framework that focuses on driving superior customer satisfaction and financial results by targeting world-class operating performance throughout all aspects of its business. The Process & Motion Control platform designs, manufactures, markets and services a comprehensive range of specified, highly-engineered mechanical components used within complex systems where the Company's 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. Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ( "ASU 2019-12" ) . The FASB issued this update as part of its initiative to reduce complexity in accounting standards. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improve consistent application of other areas by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company in fiscal 2022 and early adoption is permitted. Certain amendments of this ASU may be adopted on a retrospective basis, modified retrospective basis or prospective basis. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements. In June 2016, the FASB ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes Accounting Standards Codification (“ASC”) 326, Financial Instruments - Credit Losses . The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC 326. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. ASU 2016-13 is effective for the Company in fiscal 2021. The Company expects that it will adopt the ASU using a modified-retrospective approach. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements and does not anticipate that the guidance will materially impact its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"), which updates the standard to remove disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. ASU 2018-14 is effective for the Company in fiscal 2021 on a retroactive basis. This guidance will have no impact on the Company's condensed consolidated financial statements upon adoption other than with respect to the updated disclosure requirements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which modifies the disclosure requirements in ASC 820, Fair Value Measurement ("ASC 820"). The Company adopted this ASU on April 1, 2019. There was no impact to the Company's condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of 2017 ("Tax Act") and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company adopted the standard effective April 1, 2019, and did not reclassify tax effects stranded in accumulated other comprehensive loss. As such, there was no impact on the Company’s condensed consolidated financial position, results of operations, and cash flows as a result of the adoption of the ASU. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), which expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The Company adopted this ASU on April 1, 2019. There was no impact to the Company's condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements , which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842, Leases (“ASC 842”). ASC 842 supersedes the lease accounting requirements in ASC 840, Leases (“ASC 840”). ASC 842 establishes a right-of-use model that requires a lessee to record a right-of-use (“ROU”) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures around the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC 842 effective April 1, 2019, using a modified retrospective approach. Prior period financial statements continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods. The Company elected certain practical expedients permitted under the transition guidance within ASC 842 to leases that commenced before April 1, 2019, including the package of practical expedients that resulted in the Company not reassessing its prior conclusions under ASC 840 related to lease identification, lease terms, lease classification and initial direct costs for expired and existing leases prior to April 1, 2019, and therefore there was no adjustment to the opening balance of retained earnings. The Company also elected the practical expedient to combine lease and non-lease components for all asset classes, and has made a policy election not to capitalize leases with an initial term of 12 months or less. Upon adoption, the Company recognized ROU assets and lease liabilities of approximately $70.8 million and $73.0 million, respectively, as of April 1, 2019. Adoption of the new standard did not have a significant impact on the Company’s consolidated results of operations or cash flows. See Note 18, Leases for additional information. Reclassifications Certain prior year amounts have been reclassified to conform to the fiscal 2020 presentation. |
Acquisitions
Acquisitions | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Fiscal Year 2020 On May 10, 2019, the Company acquired substantially all of the assets of East Creek Corporation (d/b/a StainlessDrains.com), a manufacturer of stainless steel drains, grates and accessories for industrial and commercial end markets, for a cash purchase price of $24.8 million, excluding transaction costs and net of cash acquired. StainlessDrains.com, headquartered in Greenville, Texas, added complementary product lines to the Company's existing Water Management platform. The Company's results of operations include the acquired operations subsequent to the aforementioned acquisition date. Pro-forma results of operations and certain other U.S. GAAP disclosures related to this acquisition have not been presented because they are not significant to the Company's condensed consolidated statements of operations or financial position. The acquisition of StainlessDrains.com has been accounted for as a business combination and was recorded by allocating the purchase price to the fair value of assets acquired and liabilities assumed at the acquisition date. The excess of the purchase price over the fair value assigned to the assets acquired and liabilities assumed was recorded as goodwill. The purchase price allocation associated with this acquisition resulted in tax deductible goodwill of $12.7 million, other intangible assets of $8.0 million (including tradenames of $0.7 million and $7.3 million of customer relationships), $1.9 million of trade working capital and other net assets of $2.2 million. The purchase price allocation was adjusted during the third quarter of fiscal 2020, resulting in a reduction to goodwill of $1.2 million, related to the refinement of the estimated fair value of intangible assets acquired. During the second quarter of fiscal 2020, the Company acquired the remaining non-controlling interest in a Process and Motion Control joint venture for a cash purchase price of $0.3 million. The acquisition of the remaining minority interest was not material to the Company's condensed consolidated statements of operations or financial position. Fiscal Year 2019 On January 23, 2019, the Company acquired an additional 47.5% interest in Centa MP (Hong Kong) Co., Limited ("Centa China"), a joint venture in which the Company previously maintained a 47.5% non-controlling interest, for $21.4 million, net of cash held by the former joint venture. Centa China, a manufacturer and distributor of premium flexible couplings and drive shafts for industrial, marine, rail and power generation applications within the Company's Process & Motion Control platform, provides the Company with the opportunity to expand its product offerings within its Asia Pacific end markets. Prior to this transaction, the Company accounted for its non-controlling interest in Centa China as an equity method investment. The acquisition of the additional 47.5% interest was considered to be an acquisition achieved in stages, whereby the Company remeasured the previously held equity method investment to fair value. The Company considered multiple factors in determining the fair value of the previously held equity method investment, including: (i) the price negotiated with the selling shareholder for the 47.5% equity interest in Centa China, (ii) an income valuation model (discounted cash flow), and (iii) current trading multiples for comparable companies. Based on this analysis, during the fourth quarter of fiscal 2019, the Company recognized a $0.2 million gain on the remeasurement of the previously held equity method investment and a $1.8 million loss associated with the historical foreign currency translation adjustments associated with the equity method investment. The purchase price for this business combination is estimated as follows (in millions): Fair value of consideration transferred: Cash paid, net of cash acquired $ 21.4 Other items to be allocated to identifiable assets acquired and liabilities assumed Book value of investment in Centa China at the acquisition date 21.8 Gain recognized from step acquisition 0.2 Fair value of remaining non-controlling interest 2.3 Total $ 45.7 The Company allocated 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. The preliminary purchase price allocation was adjusted during the first nine months of fiscal 2020, resulting in an increase to goodwill of $0.4 million, primarily related to the refinement of the estimated fair value of intangible assets and other working capital acquired. As of December 31, 2019, the preliminary purchase price allocation associated with this acquisition resulted in non-tax deductible goodwill of $20.5 million, other intangible assets of $20.1 million (including tradenames of $1.3 million and $18.8 million of customer relationships), $7.1 million of trade working capital and other net liabilities of $2.0 million. The preliminary purchase price allocation will be completed within the one year period following the acquisition date. |
Restructuring and Other Similar
Restructuring and Other Similar Charges | 9 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Similar Charges | Restructuring and Other Similar Charges During fiscal 2020, 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 and select product-line rationalizations to optimize its operating margin and manufacturing footprint. 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 related expenses are not yet estimable. The following table summarizes the Company's restructuring and other similar charges during the three and nine months ended December 31, 2019 and December 31, 2018 by classification of operating segment (in millions): Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 3.0 $ — $ — $ 3.0 Contract termination and other associated costs 0.2 0.4 — 0.6 Total restructuring and other similar costs $ 3.2 $ 0.4 $ — $ 3.6 Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 7.4 $ 0.4 $ — $ 7.8 Contract termination and other associated costs 0.7 0.4 — 1.1 Total restructuring and other similar costs $ 8.1 $ 0.8 $ — $ 8.9 Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 0.2 $ 0.3 $ — $ 0.5 Contract termination and other associated costs 0.6 0.2 1.3 2.1 Total restructuring and other similar costs $ 0.8 $ 0.5 $ 1.3 $ 2.6 Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 3.9 $ 0.6 $ 0.6 $ 5.1 Contract termination and other associated costs 1.6 0.3 2.4 4.3 Total restructuring and other similar costs $ 5.5 $ 0.9 $ 3.0 $ 9.4 The following table summarizes the activity in the Company's restructuring accrual for the nine months ended December 31, 2019 (in millions): Employee termination benefits Contract termination and other associated costs Total Restructuring accrual, March 31, 2019 (1) $ 2.4 $ 1.9 $ 4.3 Charges 7.8 1.1 8.9 Cash payments (5.6) (1.6) (7.2) Restructuring accrual, December 31, 2019 (1) $ 4.6 $ 1.4 $ 6.0 ____________________ (1) The restructuring accrual is included in other current liabilities in the condensed consolidated balance sheets. 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. As a result, the Company recognized accelerated depreciation of $0.7 million and $2.0 million during the three and nine months ended December 31, 2019, and $1.2 million and $3.7 million during the three and nine months ended December 31, 2018. Accelerated depreciation is recorded within Cost of sales in the condensed consolidated statements of operations. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During fiscal 2019, the Company completed the sale of the VAG business, which was previously included within the Water Management platform. The operating results of the VAG business are reported as discontinued operations in the condensed consolidated statements of operations for all periods presented, as the sale of VAG represented a strategic shift that had a major impact on operations and financial results. The sale price was subject to customary working capital and cash balance adjustments, which were finalized in fiscal 2020. As a result of these adjustments and other related costs, the Company recognized an additional $1.8 million loss on the sale of discontinued operations during the nine months ended December 31, 2019. The major components of Loss from discontinued operations, net of tax presented in the condensed consolidated statements of operations consisted of the following (in millions): Three months ended Nine months ended December 31, 2019 December 31, 2018 (2) December 31, 2019 December 31, 2018 (2) Net sales $ — $ 27.3 $ — $ 124.3 Cost of sales — 20.2 — 94.9 Selling, general and administrative expenses — 10.3 — 35.0 Amortization of intangible assets — — — 0.3 Non-cash asset impairment (1) — — — 126.0 Loss on sale of discontinued operations — 19.7 1.8 19.7 Other non-operating expenses, net — 0.7 — 3.2 Loss from discontinued operations before income tax — (23.6) (1.8) (154.8) Income tax (expense) benefit — (4.2) — 0.5 Loss from discontinued operations, net of tax $ — $ (27.8) $ (1.8) $ (154.3) ____________________ (1) The Company recorded non-cash impairments of $126.0 million during the nine months ended December 31, 2018, to reflect the Company's estimated fair value less costs to sell the VAG business based on the value of preliminary bids received at that time. (2) Results from operations in fiscal 2019 reflect the period through November 26, 2018, the date on which the sale of the VAG business was completed. The condensed consolidated statements of cash flows for the prior period presented has not been adjusted to separately disclose cash flows related to discontinued operations. However, the capital expenditures, depreciation, amortization and other significant non-cash amounts associated with the discontinued operations were as follows (in millions): Nine Months Ended December 31, 2018 Depreciation $ 4.1 Amortization of intangible assets 0.3 Non-cash asset impairment 126.0 Loss on sale of discontinued operations 19.7 Capital expenditures 2.4 Net proceeds from divestiture of discontinued operations 9.0 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606, Revenue from Contracts with Customers ("ASC 606"). A contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized when obligations under the terms of a contract with the customer are satisfied. For the majority of the Company's product sales, revenue is recognized at a point-in-time when control of the product is transferred to the customer, which generally occurs when the product is shipped from the Company's manufacturing facility to the customer. When contracts include multiple products to be delivered to the customer, generally each product is separately priced and is determined to be distinct within the context of the contract. Other than a standard assurance-type warranty that the product will conform to agreed-upon specifications, there are generally no other significant post-shipment obligations. The expected costs associated with standard warranties continues to be recognized as an expense when the products are sold. When the contract provides the customer the right to return eligible products or when the customer is part of a sales rebate program, the Company reduces revenue at the point of sale using current facts and historical experience by using an estimate for expected product returns and rebates associated with the transaction. The Company adjusts these estimates at the earlier of when the most likely amount of consideration that is expected to be received changes or when the consideration becomes fixed. Accordingly, an increase or decrease to revenue is recognized at that time. Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company has elected to recognize the cost for freight and shipping when control of products has transferred to the customer as a component of cost of sales in the condensed consolidated statements of operations. 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 condensed consolidated statements of operations. Revenue by Category The Company has two business segments, Process & Motion Control and Water Management. The following tables present our revenue disaggregated by customer type and geography (in millions): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Original equipment manufacturers/end users $ 186.4 $ 183.6 $ 566.0 $ 561.6 Maintenance, repair, and operations 141.1 143.1 428.6 446.2 Total Process & Motion Control $ 327.5 $ 326.7 $ 994.6 $ 1,007.8 Water safety, quality, flow control and conservation $ 153.4 $ 148.3 $ 490.1 $ 471.2 Water infrastructure 10.8 10.0 36.6 34.4 Total Water Management $ 164.2 $ 158.3 $ 526.7 $ 505.6 Three Months Ended December 31, 2019 Nine Months Ended Process & Motion Control Water Management Process & Motion Control Water Management United States and Canada $ 207.3 $ 159.5 $ 638.3 $ 514.7 Europe 71.0 — 216.7 — Rest of world 49.2 4.7 139.6 12.0 Total $ 327.5 $ 164.2 $ 994.6 $ 526.7 Three Months Ended December 31, 2018 Nine Months Ended Process & Motion Control Water Management Process & Motion Control Water Management United States and Canada $ 214.5 $ 154.5 $ 655.3 $ 494.2 Europe 75.6 — 242.5 — Rest of world 36.6 3.8 110.0 11.4 Total $ 326.7 $ 158.3 $ 1,007.8 $ 505.6 Contract Balances For substantially all of the Company's Process & Motion Control and Water Management product sales, the customer is billed 100% of the contract value when the product ships and payment is generally due 30 days from shipment. Certain contracts include longer payment periods; however, the Company has elected to utilize the practical expedient in which the Company will only recognize a financing component to the sale if payment is due more than one year from the date of shipment. The Company receives payment from customers based on the contractual billing schedule and specific performance requirements established in the contract. Billings are recorded as accounts receivable when an unconditional right to the contractual consideration exists. Contract assets arise when the Company performs by transferring goods or services to a customer before the customer pays consideration, or before the customer’s payment is due. A contract liability exists when the Company has received consideration or the amount is due from the customer in advance of revenue recognition. Contract liabilities and contract assets are recognized in Other current liabilities and Receivables, net, respectively, in the Company's condensed consolidated balance sheets. The following table presents changes in the Company’s contract assets and liabilities during the nine months ended December 31, 2019 (in millions): Balance Sheet Classification March 31, 2019 Additions Deductions December 31, 2019 Contract assets Receivables, net $ 2.6 $ 1.4 $ (3.3) $ 0.7 Contract liabilities (1) Other current liabilities $ 5.1 $ 14.3 $ (14.5) $ 4.9 ____________________ (1) Contract liabilities are reduced when revenue is recognized. Backlog The Company has backlog of $389.5 million as of December 31, 2019, which represents the most likely amount of consideration expected to be received in satisfying the remaining backlog under open contracts. The Company has elected to use the optional exemption provided by ASC 606-10-50-14A for variable consideration, and has not included estimated rebates in the amount of unsatisfied performance obligations. The Company expects to recognize approximately 61% of the unsatisfied performance obligations as revenue in fiscal 2020 and the remaining approximately 39% in fiscal 2021 and beyond. Timing of Performance Obligations Satisfied at a Point in Time The Company determined that the customer is able to control the product when it is delivered to them; thus, depending on the shipping terms, control will transfer at different points between the Company's manufacturing facility or warehouse and the customer’s location. The Company considers control to have transferred upon shipment or delivery because the Company has a present right to payment at that time, the customer has legal title to the asset, the Company has transferred physical possession of the asset, and the customer has significant risks and rewards of ownership of the asset. Variable Consideration The Company provides volume-based rebates and the right to return product to certain customers, which are accrued for based on current facts and historical experience. Rebates are paid either on an annual or quarterly basis. There are no other significant variable consideration elements included in the Company's contracts with customers. Contract Costs The Company has elected to expense contract costs as incurred if the amortization period is expected to be one year or less. If the amortization period of these costs is expected to be greater than one year, the costs would be subject to capitalization. As of December 31, 2019, the contract assets capitalized, as well as amortization recognized in fiscal 2020, are not significant and there have been no impairment losses recognized. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for all periods presented is based on an estimated effective income tax rate for the respective full fiscal years. The estimated annual effective income tax rate is determined excluding the effect of significant discrete items or items that are reported net of their related tax effects. The tax effect of significant discrete items is reflected in the period in which they occur. The Company's income tax expense is impacted by a number of factors, including the amount of taxable earnings derived in foreign jurisdictions with tax rates that are generally higher than the U.S. federal statutory rate, state tax rates in the jurisdictions where the Company does business and the Company's ability to utilize various tax credits, capital loss and net operating loss (“NOL”) carryforwards. The Company regularly reviews its deferred tax assets 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 deemed appropriate. In addition, all other available positive and negative evidence is taken into consideration for purposes of determining the proper balances of such valuation allowances. As a result of this review, the Company continues to maintain a full valuation allowance against U.S. federal and state capital loss carryforwards and a partial valuation allowance against certain foreign NOL carryforwards and other related foreign deferred tax assets, as well as certain U.S. state NOL carryforwards. Future changes to the balances of these valuation allowances, as a result of this continued review and analysis by the Company, could result in a material impact to the financial statements for such period of change. The income tax provision was $13.4 million in the third quarter of fiscal 2020, compared to $9.1 million in the third quarter of fiscal 2019. The effective income tax rate for the third quarter of fiscal 2020 was 21.7% versus 15.0% in the third quarter of fiscal 2019. The effective income tax rate for the third quarter of fiscal 2020 was slightly above the U.S. federal statutory rate of 21% primarily due to the accrual of foreign income taxes, which are generally above the U.S. federal statutory rate, the accrual of additional income taxes associated with global intangible low-taxed income (“GILTI”) and the accrual of various state income taxes, substantially offset by the recognition of certain previously unrecognized tax benefits generally due to the lapse of the applicable statutes of limitations, the recognition of income tax benefits associated with share-based payments, net income tax benefits recognized in association with changes to certain foreign income tax rates and the recognition of income tax benefits associated with foreign-derived intangible income (“FDII”). The effective income tax rate for the third quarter of fiscal 2019 was below the U.S. federal statutory rate of 21% primarily due to the recognition of certain previously unrecognized tax benefits due to the lapse of applicable statutes of limitations partially offset by the accrual of foreign income taxes, which are generally above the U.S. federal statutory rate, the accrual of additional taxes associated with GILTI and the accrual of various state income taxes. The income tax provision recorded in the first nine months of fiscal 2020 was $47.7 million, compared to $40.8 million recorded in the first nine months of fiscal 2019. The effective income tax rate for the first nine months of fiscal 2020 was 23.7% versus 22.8% in the first nine months of fiscal 2019. The effective income tax rate for the first nine months of fiscal 2020 was above the U.S. federal statutory rate of 21% primarily due to the accrual of foreign income taxes, which are generally above the U.S. federal statutory rate, the accrual of additional income taxes associated with GILTI and the accrual of various state income taxes, partially offset by the recognition of certain previously unrecognized tax benefits generally due to the lapse of the applicable statutes of limitations, the recognition of income tax benefits associated with share-based payments, net income tax benefits recognized in association with changes to certain foreign income tax rates and FDII. The effective income tax rate for the first nine months of fiscal 2019 was slightly above the U.S. federal statutory rate of 21% primarily due to the accrual of foreign income taxes, which are generally above the U.S. federal statutory rate, the accrual of additional taxes associated with GILTI and the accrual of various state income taxes substantially offset by the recognition of certain previously unrecognized tax benefits due to the lapse of applicable statutes of limitations, the recognition of excess tax benefits associated with share-based payments and the recognition of a tax benefit associated with a foreign country enacted rate reduction. The Company’s total liability for net unrecognized tax benefits as of December 31, 2019 and March 31, 2019, was $17.9 million and $21.8 million, respectively. The Company recognizes accrued interest and penalties related to unrecognized income tax benefits in income tax expense. As of December 31, 2019 and March 31, 2019, the total amount of gross, unrecognized income tax benefits included $2.1 million and $4.3 million of accrued interest and penalties, respectively. The Company recognized $0.7 million and $0.4 million of net interest and penalties as income tax benefit during the nine months ended December 31, 2019 and December 31, 2018, 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. The Company is currently undergoing an income tax examination by the U.S. Internal Revenue Service (IRS) of the Company’s U.S. consolidated federal income tax returns for the tax years ended March 31, 2016 and 2017. In addition, in accordance with the terms of the VAG sale agreement, the Company is required to indemnify the purchaser for any future income tax liabilities associated with all open tax years ending prior to, and including, the short period ended on the date of the Company's sale of VAG. During the first quarter of fiscal 2020, VAG was notified by the German tax authorities of its intention to conduct an income tax examination of the VAG German entities’ income tax returns for the tax years ended March 31, 2014 through 2017. The Company anticipates the related fieldwork will begin during the fourth quarter of fiscal 2020. During the second quarter of fiscal 2019, the IRS completed an income tax examination of the Company’s amended U.S. consolidated federal income tax return for the tax year ended March 31, 2015, and the Company paid approximately $0.4 million upon conclusion of such examination. 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, 2016, state and local income tax examinations for years ending prior to fiscal 2016 or significant foreign income tax examinations for years ending prior to fiscal 2015. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table presents the basis for income per share computations (in millions, except share amounts): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Basic net income (loss) per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 48.4 $ 52.9 $ 153.6 $ 141.3 Less: Non-controlling interest (loss) income (0.1) (0.3) 0.2 (0.1) Less: Dividends on preferred stock 2.8 5.8 14.4 17.4 Net income from continuing operations attributable to Rexnord common stockholders $ 45.7 $ 47.4 $ 139.0 $ 124.0 Loss from discontinued operations, net of tax $ — $ (27.8) $ (1.8) $ (154.3) Net income (loss) attributable to Rexnord common stockholders $ 45.7 $ 19.6 $ 137.2 $ (30.3) Denominator: Weighted-average common shares outstanding, basic 113,448 104,777 108,250 104,562 Diluted net income (loss) per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 48.4 $ 52.9 $ 153.6 $ 141.3 Less: Non-controlling interest (loss) income (0.1) (0.3) 0.2 (0.1) Less: Dividends on preferred stock — — — — Net income from continuing operations attributable to Rexnord common stockholders $ 48.5 $ 53.2 $ 153.4 $ 141.4 Loss from discontinued operations, net of tax $ — $ (27.8) $ (1.8) $ (154.3) Net income (loss) attributable to Rexnord common stockholders $ 45.7 $ 19.6 $ 137.2 $ (30.3) Plus: Dividends on preferred stock 2.8 5.8 14.4 17.4 Net income (loss) attributable to Rexnord common stockholders $ 48.5 $ 25.4 $ 151.6 $ (12.9) Denominator: Weighted-average common shares outstanding, basic 113,448 104,777 108,250 104,562 Effect of dilutive equity securities 2,246 2,289 2,253 2,794 Preferred stock under the "if-converted" method (1) 7,989 15,979 13,307 15,979 Weighted-average common shares outstanding, diluted 123,683 123,045 123,810 123,335 ____________________ (1) During the third quarter of fiscal 2020, the Company issued 15,980,050 shares of common stock upon the mandatory conversion of Preferred stock; see Note 8, Stockholders' Equity for additional information. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stockholders' equity consists of the following (in millions): Common stock Preferred stock Additional Retained Accumulated Non-controlling interest (2) Total Balance at March 31, 2018 $ 1.0 $ — $ 1,277.8 $ 8.0 $ (74.1) $ 0.1 $ 1,212.8 Total comprehensive (loss) income — — — (0.7) (33.9) 0.1 (34.5) Stock-based compensation expense — — 6.0 — — — 6.0 Proceeds from exercise of stock options — — 2.9 — — — 2.9 Taxes withheld and paid on employees' share-based payment awards — — (0.4) — — — (0.4) Preferred stock dividends ($14.375 per share) — — — (5.8) — — (5.8) Balance at June 30, 2018 $ 1.0 $ — $ 1,286.3 $ 1.5 $ (108.0) $ 0.2 $ 1,181.0 Total comprehensive (loss) income — — — (37.6) 1.5 0.1 (36.0) Stock-based compensation expense — — 5.8 — — — 5.8 Proceeds from exercise of stock options — — 2.1 — — — 2.1 Taxes withheld and paid on employees' share-based payment awards — — (2.8) — — — (2.8) Preferred stock dividends ($14.375 per share) — — (5.8) — — — (5.8) Balance at September 30, 2018 $ 1.0 $ — $ 1,285.6 $ (36.1) $ (106.5) $ 0.3 $ 1,144.3 Total comprehensive income (loss) — — — 25.4 9.4 (0.3) 34.5 Stock-based compensation expense — — 5.5 — — — 5.5 Proceeds from exercise of stock options — — 1.6 — — — 1.6 Preferred stock dividends ($14.375 per share) — — (5.8) — — — (5.8) Balance at December 31, 2018 $ 1.0 $ — $ 1,286.9 $ (10.7) $ (97.1) $ — $ 1,180.1 Common stock (1) Preferred stock Additional Retained Accumulated Non-controlling interest (2) Total Balance at March 31, 2019 $ 1.0 $ — $ 1,293.5 $ 30.7 $ (96.6) $ 2.4 $ 1,231.0 Total comprehensive income — — — 46.5 — 0.2 46.7 Stock-based compensation expense — — 6.9 — — — 6.9 Proceeds from exercise of stock options — — 4.8 — — — 4.8 Taxes withheld and paid on employees' share-based payment awards — — (5.7) — — — (5.7) Preferred stock dividends ($14.375 per share) — — — (5.8) — — (5.8) Balance at June 30, 2019 $ 1.0 $ — $ 1,299.5 $ 71.4 $ (96.6) $ 2.6 $ 1,277.9 Total comprehensive income (loss) — — — 56.6 (15.1) 0.1 41.6 Stock-based compensation expense — — 5.9 — — — 5.9 Proceeds from exercise of stock options — — 2.1 — — — 2.1 Acquisition of non-controlling interest — — (0.3) — — — (0.3) Preferred stock dividends ($14.375 per share) — — — (5.8) — — (5.8) Balance at September 30, 2019 $ 1.0 $ — $ 1,307.2 $ 122.2 $ (111.7) $ 2.7 $ 1,321.4 Total comprehensive income (loss) — — — 48.5 7.3 (0.1) 55.7 Stock-based compensation expense — — 5.9 — — — 5.9 Proceeds from exercise of stock options — — 9.9 — — — 9.9 Mandatory conversion of preferred stock to common stock (3) 0.2 — (0.2) — — — — Taxes withheld and paid on employees' share-based payment awards — — (1.9) — — — (1.9) Repurchase of common stock (4) — — — (20.0) — — (20.0) Preferred stock dividends ($14.375 per share) — — — (2.8) — — (2.8) Balance at December 31, 2019 $ 1.2 $ — $ 1,320.9 $ 147.9 $ (104.4) $ 2.6 $ 1,368.2 ____________________ (1) For the three and nine months ended December 31, 2019, the Company issued 563,779 and 1,672,978 shares of common stock, respectively, upon the exercise of stock options and vesting of restricted stock units and performance stock units. (2) During fiscal 2019, represents a 30% non-controlling interest in two Process & Motion Control controlled subsidiaries. During the second quarter of fiscal 2020, the Company acquired the remaining 30% non-controlling interest associated with one of the aforementioned Process & Motion Control joint ventures for a cash purchase price of $0.3 million. Following this transaction, represents a 30% non-controlling interest in the remaining Process & Motion Control controlled subsidiary and a 5% non-controlling interest in another Process & Motion Control joint venture relationship. (3) During the third quarter of fiscal 2020, the Company issued 15,980,050 shares of common stock upon the mandatory conversion of preferred stock; see "Preferred Stock" below. (4) During fiscal 2020, the Company repurchased and canceled 639,500 shares of common stock at a total cost of $20.0 million at a weighted average price of $31.30 per share. See "Share Repurchase Program" below. Preferred Stock During the third quarter of fiscal 2020, 402,500 shares of 5.75% Series A Mandatory Convertible Preferred Stock (the "Series A Preferred Stock") automatically converted into 15,980,050 shares of the Company's common stock. The number of shares of common stock issued upon conversion was determined based on a defined average volume weighted average price per share of the Company’s common stock. Upon conversion, there were no shares of Series A Preferred Stock outstanding. Dividends were paid on the Series A Preferred Stock quarterly. The final dividend payment was made on November 15, 2019. During the three and nine months ended December 31, 2019, the Company paid $5.8 million and $17.4 million of dividends on the Series A Preferred Stock, respectively. Share Repurchase Program 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. During the third quarter of fiscal 2020, the Company repurchased 639,500 shares of common stock for a total cost of $20.0 million at a weighted average price of $31.30 per share. The repurchased shares were canceled by the Company upon receipt. A total of approximately $140.0 million of the existing authority remained under the Repurchase Program at December 31, 2019. For more information related to the Repurchase Program, see Note 22, Subsequent Events. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, for the nine months ended December 31, 2019 are as follows (in millions): Interest Rate Derivatives Foreign Currency Translation Pension and Postretirement Plans Total Balance at March 31, 2019 $ 0.8 $ (60.1) $ (37.3) $ (96.6) Other comprehensive loss before reclassifications — (8.2) — (8.2) Amounts reclassified from accumulated other comprehensive loss — — 0.4 0.4 Net current period other comprehensive (loss) income — (8.2) 0.4 (7.8) Balance at December 31, 2019 $ 0.8 $ (68.3) $ (36.9) $ (104.4) The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the three and nine months ended December 31, 2019 and December 31, 2018 (in millions): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Income Statement Line Pension and other postretirement plans Amortization of prior service credit $ — $ (0.3) $ (0.2) $ (0.9) Other (expense) income, net Settlement — — 0.8 — Other (expense) income, net Provision (benefit) for income taxes — 0.1 (0.2) 0.3 Total net of tax $ — $ (0.2) $ 0.4 $ (0.6) Interest rate derivatives Net realized losses on interest rate hedges $ — $ 0.4 $ — $ 5.7 Interest expense, net Benefit for income taxes — (0.1) — (1.4) Total net of tax $ — $ 0.3 $ — $ 4.3 |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2019 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The major classes of inventories are summarized as follows (in millions): December 31, 2019 March 31, 2019 Finished goods $ 164.8 $ 147.3 Work in progress 46.6 39.8 Purchased components 77.3 76.7 Raw materials 59.6 53.9 Inventories at First-in, First-Out ("FIFO") cost 348.3 317.7 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 1.0 (1.2) $ 349.3 $ 316.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Dec. 31, 2019 | |
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 nine months ended December 31, 2019 by operating segment are presented below (in millions): Process & Motion Control Water Management Consolidated Net carrying amount as of March 31, 2019 $ 1,125.2 $ 174.5 $ 1,299.7 Currency translation adjustments (1.6) 0.2 (1.4) Acquisition (1) — 12.7 12.7 Purchase accounting adjustments 0.4 — 0.4 Net carrying amount as of December 31, 2019 $ 1,124.0 $ 187.4 $ 1,311.4 ____________________ (1) Refer to Note 2, Acquisitions for additional information regarding acquisitions. The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of December 31, 2019 and March 31, 2019 are as follows (in millions): December 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 51.1 $ (40.9) $ 10.2 Customer relationships (including distribution network) 13 years 719.7 (545.7) 174.0 Tradenames 13 years 41.0 (13.6) 27.4 Intangible assets not subject to amortization - tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,092.7 $ (600.2) $ 492.5 March 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 50.9 $ (39.8) $ 11.1 Customer relationships (including distribution network) 13 years 713.5 (523.1) 190.4 Tradenames 13 years 40.4 (11.3) 29.1 Intangible assets not subject to amortization - tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,085.7 $ (574.2) $ 511.5 Intangible asset amortization expense totaled $8.8 million and $26.3 million for the three and nine months ended December 31, 2019. Intangible asset amortization expense totaled $8.4 million and $25.4 million for the three and nine months ended December 31, 2018. Tradenames and customer relationship intangible assets acquired during fiscal 2020 were assigned a weighted average useful life of 15 years and 14 years, respectively. The Company expects to recognize amortization expense on the intangible assets subject to amortization of $35.1 million in fiscal year 2020 (inclusive of $26.3 million of amortization expense recognized in the nine months ended December 31, 2019), $34.0 million in fiscal year 2021, $29.7 million in fiscal year 2022, $15.4 million in fiscal year 2023, $14.6 million in fiscal year 2024 and $14.3 million in fiscal year 2025. The Company evaluates the carrying value of goodwill annually as of October 1 during the third quarter of each fiscal year, and more frequently if events or changes in circumstances indicate that an impairment may exist. The Company completed the testing of indefinite-lived intangible assets (tradenames) and goodwill for impairment as of October 1, 2019, using primarily 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 all reporting units exceeded their carrying value; therefore, no impairment was present. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities are summarized as follows (in millions): December 31, 2019 March 31, 2019 Contract liabilities $ 4.9 $ 5.1 Sales rebates 38.2 35.3 Commissions 5.3 6.8 Restructuring and other similar charges (1) 6.0 4.3 Product warranty (2) 6.3 7.2 Risk management (3) 10.6 10.5 Legal and environmental 2.0 2.6 Taxes, other than income taxes 7.3 7.8 Income tax payable 10.8 20.3 Interest payable 2.0 7.7 Current portion of operating lease liability (4) 11.2 — Other 12.2 29.5 $ 116.8 $ 137.1 ____________________ (1) See more information related to the restructuring obligations within Note 3, Restructuring and Other Similar Charges. (2) See more information related to the product warranty obligations within Note 16, Commitments and Contingencies. (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. (4) See more information related to leases within Note 18, Leases. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is summarized as follows (in millions): December 31, 2019 March 31, 2019 Term loan (1) $ 620.6 $ 718.4 4.875% Senior Notes due 2025 (2) 495.5 495.0 Finance leases and other subsidiary debt (3) 32.5 24.6 Total 1,148.6 1,238.0 Less current maturities 1.4 1.2 Long-term debt $ 1,147.2 $ 1,236.8 ____________________ (1) Includes unamortized debt issuance costs of $4.4 million and $6.6 million at December 31, 2019 and March 31, 2019, respectively. (2) Includes unamortized debt issuance costs of $4.5 million and $5.0 million at December 31, 2019 and March 31, 2019, respectively. (3) See more information related to finance leases within Note 18, Leases. Senior Secured Credit Facility At December 31, 2019, the Company’s Third Amended and Restated First Lien Credit Agreement, as amended (the “Credit Agreement”), is funded by a syndicate of banks and other financial institutions and provides for (i) a $725.0 million term loan facility (which was reduced to $625.0 million as a result of a December 2019 voluntary prepayment, as discussed below) and (ii) a $264.0 million revolving credit facility. On November 21, 2019, the Company entered into an Incremental Assumption Agreement (the “Amendment”) with Credit Suisse AG, Cayman Islands Branch, as administrative agent and as the refinancing term lender, relating to the Credit Agreement. Prior to the Amendment, the term loan facility under the Credit Agreement, which was originally issued in an aggregate principal amount of $800.0 million, had a principal balance of $725.0 million on account of a $75.0 million voluntary prepayment by the Company in the fourth quarter of fiscal 2019 ("Prior Term Loan"). The Amendment provided for the issuance of a term loan facility in an aggregate principal amount of $725.0 million ("Term Refinancing Loan") and the proceeds were used to repay in full the aggregate principal amount of the Prior Term Loan. Borrowings under the Term Refinancing Loan, as amended, bear interest at either (i) an Adjusted LIBOR Rate (subject to a 0% floor) plus an applicable margin of 1.75% (which was reduced from 2.0%) or at an alternative base rate plus an applicable margin of 0.75% (which was reduced from 1.00%). At December 31, 2019, the borrowings under the Term Refinancing Loan had a weighted-average effective interest rate of 3.51%. The weighted-average interest rate for the nine months ended December 31, 2019, was 4.15%. The Amendment did not change the maturity date or interest rate with respect to the revolving credit facility under the Credit Agreement. No amounts were borrowed under the revolving credit facility at December 31, 2019 or March 31, 2019; however, $5.1 million and $5.6 million of the revolving credit facility were considered utilized in connection with outstanding letters of credit at December 31, 2019, and March 31, 2019, respectively. In connection with the above transaction, the Company recognized a $1.5 million loss on the debt extinguishment in the third quarter of fiscal 2020, which was comprised of $0.7 million of refinancing related costs, as well as a non-cash write-off of debt issuance costs associated with previously outstanding debt of $0.8 million. Additionally, the Company capitalized $0.1 million of direct costs associated with the Term Refinancing Loan, which will be amortized over the life of the loan as interest expense using the effective interest method. As of December 31, 2019, the Company was in compliance with all applicable covenants under the Credit Agreement, including compliance with a maximum permitted total net leverage ratio (the Company's sole financial maintenance covenant under the revolving credit facility discussed below) of 6.75 to 1.0. The Company's total net leverage ratio was 2.0 to 1.0 as of December 31, 2019. On December 6, 2019, the Company made a voluntary prepayment on its Term Refinancing Loan of $100.0 million. In connection with this prepayment, the Company recognized a $0.7 million loss on debt extinguishment to write off a portion of the unamortized debt issuance costs. 4.875% Senior Notes due 2025 On December 7, 2017, the Company issued $500.0 million aggregate principal amount of 4.875% senior notes due 2025 (the “Notes”). The Notes were issued by RBS Global, Inc. and Rexnord LLC (Company subsidiaries; collectively, the “Issuers”) pursuant to an Indenture, dated as of December 7, 2017 (the “Indenture”), by and among the Issuers, the domestic subsidiaries of the Company (with certain exceptions) as guarantors named therein (the “Subsidiary Guarantors”) and Wells Fargo Bank, National Association (the “Trustee”). The Notes are general senior unsecured obligations of the Issuers. Rexnord Corporation separately entered into a Parent Guarantee with the Trustee whereby it guaranteed certain obligations of the Issuers under the Indenture. The Notes pay interest semi-annually on June 15 and December 15. The Notes were not and will not be registered under the Securities Act of 1933 or any state securities laws. Accounts Receivable Securitization Program The Company has an amended accounts receivable securitization facility (the "Securitization") with Wells Fargo & Company ("Wells Fargo"). 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 bear interest based on LIBOR plus 1.20%. 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 pays 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 is 0.50% per annum; otherwise, it is 0.375% per annum. The Securitization constitutes a "Permitted Receivables Financing" under 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 condensed consolidated balance sheets. Financing costs associated with the Securitization are recorded within "Interest expense, net" in the condensed consolidated statements of operations if revolving loans or letters of credit are obtained under the facility. At December 31, 2019 and March 31, 2019, the Company's borrowing capacity under the Securitization was $89.1 and $100.0 million, respectively, based on the current accounts receivables balance. No amount was borrowed under the Securitization as of December 31, 2019 or March 31, 2019. In addition, $6.9 million and $7.1 million of available borrowing capacity under the Securitization was considered utilized in connection with outstanding letters of credit at December 31, 2019 and March 31, 2019, respectively. As of December 31, 2019, the Company was in compliance with all applicable covenants and performance ratios contained in the Securitization. Other Subsidiary Debt Prior to 2016, the Company received an aggregate of $9.8 million 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 "Investors") 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. 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 30 years, bearing an interest rate of approximately 2.0% per annum. Under the terms of the financing agreements and upon meeting certain conditions, both the Investors and the Company have the ability to trigger forgiveness of the net debt. During the third quarter of fiscal year 2019, $23.4 million of the associated loans and $17.9 million of the related loans receivable were forgiven by both the Investors and the Company resulting in a non-cash gain on debt extinguishment of $5.0 million, net of the write-off of $0.5 million of unamortized debt issuance costs associated with the forgiven debt. During the second quarter of fiscal year 2020, the remaining $14.0 million of aggregate loans and $9.7 million of loans receivable remaining were also jointly forgiven by the Company and the Investors, resulting in a non-cash gain on debt extinguishment of $3.2 million. As of December 31, 2019, there are no outstanding balances related to the New Market Tax Credit related debt. For more information related to finance leases, see Note 18, Leases. See Note 11, Long-Term Debt to the audited consolidated financial statements of the Company's fiscal 2019 Annual Report on Form 10-K for further information regarding long-term debt. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company is exposed to certain financial risks relating to fluctuations in foreign currency exchange rates. The Company currently selectively uses foreign currency forward exchange contracts to manage its foreign currency risk. All hedging transactions are authorized and executed pursuant to defined policies and procedures that prohibit the use of financial instruments for speculative purposes. Foreign Exchange Contracts The Company periodically enters into foreign currency forward contracts to mitigate the foreign currency volatility relative to certain intercompany and external cash flows expected to occur. These foreign currency forward contracts were not accounted for as cash flow hedges in accordance with ASC 815, Derivatives and Hedging (“ASC 815”), and as such were marked to market through earnings. The amounts recorded on the condensed consolidated balance sheets and recognized within the condensed consolidated statements of operations related to the Company's foreign currency forward contracts for the three and nine months ended December 31, 2019 and 2018 were not material. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2019 | |
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 Financial Instruments There were no transfers of assets between levels at December 31, 2019 and March 31, 2019, respectively. As of December 31, 2019 and March 31, 2019, the fair value of foreign currency forward contract assets classified within Level 2 was immaterial. The Company has a nonqualified deferred compensation plan where assets are invested in mutual funds and corporate-owned life insurance contracts held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for the mutual funds, which are measured using quoted prices of identical instruments in active markets categorized as Level 1. Corporate-owned life insurance contracts are recorded at cash surrender value, which is provided by a third party and reflects the net asset value of the underlying publicly traded mutual funds categorized as Level 2. The deferred compensation assets are classified within other assets on the condensed consolidated balance sheets. Deferred compensation liabilities are measured at fair value based on quoted prices of identical instruments to the investment vehicles selected by the participants categorized as Level 1. Deferred compensation liabilities are classified within other liabilities on the condensed consolidated balance sheets. 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 December 31, 2019 and March 31, 2019 (in millions): Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total Deferred compensation assets $ 1.3 $ 6.8 $ — $ 8.1 Deferred compensation liabilities 8.3 — — 8.3 Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total Deferred compensation assets $ 2.3 $ 3.7 $ — $ 6.0 Deferred compensation liabilities 6.1 — — 6.1 Fair Value of Non-Derivative Financial Instruments |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties: The Company offers warranties on the sales of certain products and records an accrual for estimated future claims. Such accruals are based upon historical experience and management's estimate of the level of future claims. The following table presents changes in the Company's product warranty liability (in millions): Nine Months Ended December 31, 2019 December 31, 2018 Balance at beginning of period $ 7.2 $ 7.7 Charged to operations 2.2 1.5 Claims settled (3.1) (1.8) Balance at end of period $ 6.3 $ 7.4 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 the subject of claims by multiple claimants alleging personal injuries due to the alleged presence of asbestos in a product allegedly manufactured by Prager. However, all these claims are currently on the Texas Multi-district Litigation inactive docket, and the Company does not believe that they will become active in the future. 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 December 31, 2019, Zurn and numerous other unrelated companies were defendants in approximately 5,000 asbestos related lawsuits representing approximately 7,000 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 December 31, 2019, 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 $40.0 million, of which Zurn expects its insurance carriers to pay approximately $30.0 million in the next ten years on such claims, with the balance of the estimated liability being paid in subsequent years. The $40.0 million was developed based on actuarial studies and represents the projected indemnity payout for current and future claims. 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 condensed consolidated balance sheets. Management estimates that its available insurance to cover this potential asbestos liability as of December 31, 2019, is in excess of the 10 year estimated exposure, and accordingly, believes that all current claims are covered by insurance. As of December 31, 2019, the Company had a recorded receivable from its insurance carriers of $40.0 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 the Company's current insurance coverage will ultimately be available or that this asbestos liability will not ultimately exceed the Company's coverage limits. Factors that could cause a decrease in the amount of available coverage or create gaps in coverage include: changes in law governing the policies, potential disputes and settlements 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 condensed 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. The settlement utilizes a seven seven |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost are as follows (in millions): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Pension Benefits: Service cost $ 0.2 $ 0.1 $ 0.4 $ 0.3 Interest cost 5.5 5.8 16.5 17.4 Expected return on plan assets (5.7) (6.6) (17.0) (19.8) Settlement — — 0.8 — Net periodic benefit (credit) cost $ — $ (0.7) $ 0.7 $ (2.1) Other Postretirement Benefits: Interest cost $ 0.2 $ 0.2 $ 0.5 $ 0.6 Amortization: Prior service credit — (0.3) (0.2) (0.9) Net periodic benefit cost (credit) $ 0.2 $ (0.1) $ 0.3 $ (0.3) The service cost component of net periodic benefits is presented within Cost of sales and Selling, general and administrative expenses in the condensed consolidated statements of operations, while the other components of net periodic benefit cost are presented within Other (expense) income, net. During the first nine months of fiscal 2020 and 2019, the Company made contributions of $0.2 million and $1.1 million, respectively, to its U.S. qualified pension plan trusts. During fiscal 2019, the Company offered participants in the defined benefit plan of Cambridge International Holdings Corp., which was acquired by the Company in fiscal 2017, the opportunity to receive a lump sum settlement as part of the termination process for that plan. During the first quarter of fiscal 2020, the obligations associated with the individuals that did not accept the lump sum settlement offer were transferred to an insurance company through the purchase of an annuity. The Company's cash contribution to purchase the annuity contract was $3.9 million. Following the purchase of the annuity contract, the Company has no remaining obligations to participants of this plan. The termination of this plan resulted in the recognition of $0.8 million non-cash pre-tax losses during the first quarter of fiscal 2020. See Note 16, Retirement Benefits, to the audited consolidated financial statements of the Company's fiscal 2019 Annual Report on Form 10-K for further information regarding retirement benefits. |
Leases
Leases | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company determines if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. The Company has operating and finance leases primarily associated with real estate, automobiles and manufacturing and office equipment. The Company has lease agreements that include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of the underlying assets. The term of the Company’s leases generally reflects the non-cancellable period of the lease. Some of the Company’s lease agreements include options to extend or terminate the lease, which are excluded from the minimum lease terms unless the Company is reasonably certain the option will be exercised. Lease expense for operating leases and amortization expense for finance leases is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets and are instead recognized on a straight-line basis over the lease term Right-of-use (“ROU”) assets and liabilities are recognized in the condensed consolidated balance sheets based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the lease commencement date, any initial direct costs incurred, and are reduced by lease incentives received. As most of the Company’s leases do not provide an implicit rate, the present value of lease payments is determined using the Company’s incremental borrowing rate at the commencement date of the lease. Lease payments included in the measurement of the lease liabilities are comprised of fixed payments, variable payments that depend on an index or rate, and amounts probable to be paid if an option is reasonably certain to be exercised. Variable lease payments, typically based on usage of the asset or changes in an index or rate, are excluded from the lease liabilities and are recognized in the period in which the obligation for those payments is incurred. ROU assets and lease liability balances recorded on the condensed consolidated balance sheets are summarized as follows (in millions): Leases Classification December 31, 2019 Assets: Operating ROU assets Other assets $ 45.6 Finance ROU assets Property, plant and equipment, net (1) 26.7 Total ROU assets $ 72.3 Liabilities: Current Operating Other current liabilities $ 11.2 Finance Current maturities of debt 0.4 Non-current Operating Other liabilities 36.7 Finance Long-term debt 26.8 Total lease liabilities $ 75.1 ____________________ (1) Finance lease assets are recorded net of accumulated amortization of $0.8 million as of December 31, 2019. The components of lease expense reported in the condensed consolidated statements of operations are as follows (in millions): Three Months Ended Nine Months Ended December 31, 2019 Operating lease expenses (1) $ 3.9 $ 11.2 Finance lease expenses: Depreciation of finance ROU assets (1) 0.3 0.8 Interest on lease liabilities (2) 0.5 1.2 Total finance lease expense 0.8 2.0 Variable and short-term lease expense (1) 1.0 3.3 Total lease expense $ 5.7 $ 16.5 ____________________ (1) Included in cost of sales and selling, general and administrative expenses. (2) Included in interest expense, net. Future minimum lease payments under operating and finance leases as of December 31, 2019 are as follows (in millions): Years ending March 31, Operating Leases (1) Finance Leases (1) 2020 (excluding the nine months ended December 31, 2019) $ 3.2 $ 0.5 2021 12.6 1.9 2022 10.4 1.9 2023 9.1 1.9 2024 6.5 1.9 Thereafter 11.4 46.2 Total future minimum lease payments 53.2 54.3 Less: Imputed interest (5.3) (27.1) Total lease liabilities $ 47.9 $ 27.2 ____________________ (1) Excludes legally binding minimum lease payments for leases signed but not yet commenced. Future minimum rental payments for leases with initial terms in excess of one year as of March 31, 2019 are as follows (in millions): Years ending March 31: 2020 $ 14.6 2021 11.8 2022 9.6 2023 8.7 2024 6.4 Thereafter 56.3 Total future minimum lease payments $ 107.4 The weighted-average remaining lease terms and discount rates for leases are as follows: Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease terms (years): Operating leases 5.0 Finance leases 28.6 Weighted-average discount rate: Operating leases 3.9 % Finance leases 5.7 % Cash paid for amounts included in the measurement of lease liabilities are as follows (in millions): Nine Months Ended December 31, 2019 Operating cash flows from operating leases $ 10.8 Operating cash flows from finance leases 1.2 Financing cash flows from finance leases 0.3 ROU assets obtained in exchange for lease liabilities are as follows (in millions): Nine Months Ended December 31, 2019 Operating leases $ 12.0 Sale-Leaseback Transaction: During fiscal 2018, the Company entered into a sale-leaseback arrangement for an owned facility in Downers Grove, Illinois. In accordance with the sale-leaseback guidance of ASC 840, the property did not qualify for sale accounting and as a result was accounted for as a financing transaction. No gain or loss was recognized in connection with this transaction. Upon the Company's adoption of ASC 842 on April 1, 2019, this financing transaction did not qualify for sale-leaseback accounting under the requirements of ASC 842 and, accordingly, continued to be accounted for as a financing obligation. The financing obligation and related asset of $4.6 million and $3.0 million, respectively, are recorded in Property, plant and equipment, net and Other liabilities in the condensed consolidated balance sheet as of December 31, 2019. |
Leases | Leases The Company determines if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. The Company has operating and finance leases primarily associated with real estate, automobiles and manufacturing and office equipment. The Company has lease agreements that include lease and non-lease components, which the Company has elected to account for as a single lease component for all classes of the underlying assets. The term of the Company’s leases generally reflects the non-cancellable period of the lease. Some of the Company’s lease agreements include options to extend or terminate the lease, which are excluded from the minimum lease terms unless the Company is reasonably certain the option will be exercised. Lease expense for operating leases and amortization expense for finance leases is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the condensed consolidated balance sheets and are instead recognized on a straight-line basis over the lease term Right-of-use (“ROU”) assets and liabilities are recognized in the condensed consolidated balance sheets based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the lease commencement date, any initial direct costs incurred, and are reduced by lease incentives received. As most of the Company’s leases do not provide an implicit rate, the present value of lease payments is determined using the Company’s incremental borrowing rate at the commencement date of the lease. Lease payments included in the measurement of the lease liabilities are comprised of fixed payments, variable payments that depend on an index or rate, and amounts probable to be paid if an option is reasonably certain to be exercised. Variable lease payments, typically based on usage of the asset or changes in an index or rate, are excluded from the lease liabilities and are recognized in the period in which the obligation for those payments is incurred. ROU assets and lease liability balances recorded on the condensed consolidated balance sheets are summarized as follows (in millions): Leases Classification December 31, 2019 Assets: Operating ROU assets Other assets $ 45.6 Finance ROU assets Property, plant and equipment, net (1) 26.7 Total ROU assets $ 72.3 Liabilities: Current Operating Other current liabilities $ 11.2 Finance Current maturities of debt 0.4 Non-current Operating Other liabilities 36.7 Finance Long-term debt 26.8 Total lease liabilities $ 75.1 ____________________ (1) Finance lease assets are recorded net of accumulated amortization of $0.8 million as of December 31, 2019. The components of lease expense reported in the condensed consolidated statements of operations are as follows (in millions): Three Months Ended Nine Months Ended December 31, 2019 Operating lease expenses (1) $ 3.9 $ 11.2 Finance lease expenses: Depreciation of finance ROU assets (1) 0.3 0.8 Interest on lease liabilities (2) 0.5 1.2 Total finance lease expense 0.8 2.0 Variable and short-term lease expense (1) 1.0 3.3 Total lease expense $ 5.7 $ 16.5 ____________________ (1) Included in cost of sales and selling, general and administrative expenses. (2) Included in interest expense, net. Future minimum lease payments under operating and finance leases as of December 31, 2019 are as follows (in millions): Years ending March 31, Operating Leases (1) Finance Leases (1) 2020 (excluding the nine months ended December 31, 2019) $ 3.2 $ 0.5 2021 12.6 1.9 2022 10.4 1.9 2023 9.1 1.9 2024 6.5 1.9 Thereafter 11.4 46.2 Total future minimum lease payments 53.2 54.3 Less: Imputed interest (5.3) (27.1) Total lease liabilities $ 47.9 $ 27.2 ____________________ (1) Excludes legally binding minimum lease payments for leases signed but not yet commenced. Future minimum rental payments for leases with initial terms in excess of one year as of March 31, 2019 are as follows (in millions): Years ending March 31: 2020 $ 14.6 2021 11.8 2022 9.6 2023 8.7 2024 6.4 Thereafter 56.3 Total future minimum lease payments $ 107.4 The weighted-average remaining lease terms and discount rates for leases are as follows: Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease terms (years): Operating leases 5.0 Finance leases 28.6 Weighted-average discount rate: Operating leases 3.9 % Finance leases 5.7 % Cash paid for amounts included in the measurement of lease liabilities are as follows (in millions): Nine Months Ended December 31, 2019 Operating cash flows from operating leases $ 10.8 Operating cash flows from finance leases 1.2 Financing cash flows from finance leases 0.3 ROU assets obtained in exchange for lease liabilities are as follows (in millions): Nine Months Ended December 31, 2019 Operating leases $ 12.0 Sale-Leaseback Transaction: During fiscal 2018, the Company entered into a sale-leaseback arrangement for an owned facility in Downers Grove, Illinois. In accordance with the sale-leaseback guidance of ASC 840, the property did not qualify for sale accounting and as a result was accounted for as a financing transaction. No gain or loss was recognized in connection with this transaction. Upon the Company's adoption of ASC 842 on April 1, 2019, this financing transaction did not qualify for sale-leaseback accounting under the requirements of ASC 842 and, accordingly, continued to be accounted for as a financing obligation. The financing obligation and related asset of $4.6 million and $3.0 million, respectively, are recorded in Property, plant and equipment, net and Other liabilities in the condensed consolidated balance sheet as of December 31, 2019. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Rexnord Corporation Performance Incentive Plan (the "Plan") 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. For the three and nine months ended December 31, 2019, the Company recognized $5.9 million and $18.7 million of stock-based compensation expense, respectively. For the three and nine months ended December 31, 2018, the Company recognized $5.7 million and $17.3 million, respectively, of stock-based compensation expense. During the nine months ended December 31, 2019, the Company granted the following stock options, restricted stock units, and performance stock units to directors, executive officers, and certain other employees: Award Type Number of Awards Weighted Average Grant-Date Fair Value Stock options 154,934 $ 9.50 Restricted stock units 421,697 $ 27.51 Performance stock units 324,619 $ 27.50 See Note 15, Stock-Based Compensation, to the audited consolidated financial statements of the Company's fiscal 2019 Annual Report on Form 10-K for further information regarding stock-based compensation. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company's 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 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®, Addax®, Euroflex®, Falk®, FlatTop®, Cambridge®, Link-Belt®, Omega®, PSI®, Shafer®, Stearns®, Highfield®, Thomas®, Centa®, and Tollok®. 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. Products are marketed and sold under widely recognized brand names, including Zurn®, Wilkins®, Green Turtle®, World Dryer® and StainlessDrains.com®. The financial information of the Company's segments is regularly evaluated by the chief operating decision maker in determining resource allocation and assessing performance. Management evaluates the performance of each business segment based on its operating results. The same accounting policies are used throughout the organization. See Note 1, Basis of Presentation and Significant Accounting Policies for further information. During fiscal 2019, the Company sold its VAG business included within the Water Management platform and in accordance with the authoritative guidance, the operating results of the VAG business are reported as discontinued operations in all periods presented. See Note 4, Discontinued Operations, for further information. Business Segment Information: (in Millions) Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net sales Process & Motion Control $ 327.5 $ 326.7 $ 994.6 $ 1,007.8 Water Management (1) 164.2 158.3 526.7 505.6 Consolidated net sales 491.7 485.0 1,521.3 1,513.4 Income from operations Process & Motion Control 53.6 53.4 167.0 159.7 Water Management (1) 37.6 33.1 121.3 110.9 Corporate (13.6) (15.6) (42.0) (46.2) Consolidated income from operations 77.6 70.9 246.3 224.4 Non-operating expense: Interest expense, net (14.4) (16.8) (45.2) (54.1) (Loss) gain on the extinguishment of debt (2.2) 5.0 1.0 5.0 Other income (expense), net 0.8 1.6 (1.0) 3.3 Income before income taxes 61.8 60.7 201.1 178.6 Provision for income taxes (13.4) (9.1) (47.7) (40.8) Equity method investment income — 1.3 0.2 3.5 Net income from continuing operations 48.4 52.9 153.6 141.3 Loss from discontinued operations, net of tax — (27.8) (1.8) (154.3) Net income (loss) 48.4 25.1 151.8 (13.0) Non-controlling interest (loss) income (0.1) (0.3) 0.2 (0.1) Net income (loss) attributable to Rexnord 48.5 25.4 151.6 (12.9) Dividends on preferred stock (2.8) (5.8) (14.4) (17.4) Net income (loss) attributable to Rexnord common stockholders $ 45.7 $ 19.6 $ 137.2 $ (30.3) Depreciation and amortization Process & Motion Control $ 14.9 $ 15.7 $ 44.5 $ 47.4 Water Management (1) 6.6 6.2 19.5 18.6 Corporate 0.1 — 0.3 — Consolidated $ 21.6 $ 21.9 $ 64.3 $ 66.0 Capital expenditures Process & Motion Control $ 9.6 $ 6.8 $ 20.0 $ 20.1 Water Management (1) 2.7 1.2 5.5 4.0 Consolidated $ 12.3 $ 8.0 $ 25.5 $ 24.1 ____________________ (1) Amounts reflect Water Management continuing operations. |
Guarantor Subsidiaries
Guarantor Subsidiaries | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor Subsidiaries | Guarantor Subsidiaries The following schedules present condensed consolidating financial information of the Company as of December 31, 2019 and March 31, 2019, and for the three and nine month periods ended December 31, 2019 and 2018 for (a) Rexnord Corporation, the parent company (the "Parent"); (b) RBS Global, Inc. and its wholly-owned subsidiary Rexnord LLC, which together are co-issuers (the “Issuers”) of the outstanding Notes; (c) on a combined basis, the domestic subsidiaries of the Company, all of which are wholly-owned by the Issuers (collectively, the “Guarantor Subsidiaries”) and guarantors of those Notes; and (d) on a combined basis, the foreign subsidiaries of the Company (collectively, the “Non-Guarantor Subsidiaries”). Separate financial statements of the Guarantor Subsidiaries are not presented because their guarantees of the senior notes and senior subordinated notes are full, unconditional and joint and several, and the Company believes separate financial statements and other disclosures regarding the Guarantor Subsidiaries are not material to investors. Condensed Consolidating Balance Sheets December 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ — $ 117.4 $ 159.6 $ — $ 277.0 Receivables, net — — 181.0 102.1 — 283.1 Inventories — — 242.8 106.5 — 349.3 Income tax receivable — — 9.6 1.6 — 11.2 Other current assets — — 18.0 30.0 — 48.0 Total current assets — — 568.8 399.8 — 968.6 Property, plant and equipment, net — — 247.7 125.1 — 372.8 Intangible assets, net — — 399.0 93.5 — 492.5 Goodwill — — 1,029.8 281.6 — 1,311.4 Investment in: Issuer subsidiaries 1,373.8 — — — (1,373.8) — Guarantor subsidiaries — 3,305.2 — — (3,305.2) — Non-guarantor subsidiaries — — 539.1 — (539.1) — Other assets — 0.9 73.8 41.6 — 116.3 Total assets $ 1,373.8 $ 3,306.1 $ 2,858.2 $ 941.6 $ (5,218.1) $ 3,261.6 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 0.5 $ 0.9 $ — $ 1.4 Trade payables — — 120.4 58.0 — 178.4 Compensation and benefits — — 28.5 18.9 — 47.4 Current portion of pension and postretirement benefit obligations — — 1.9 1.4 — 3.3 Other current liabilities 0.3 1.9 77.8 36.8 — 116.8 Total current liabilities 0.3 1.9 229.1 116.0 — 347.3 Long-term debt — 1,116.2 26.9 4.1 — 1,147.2 Pension and postretirement benefit obligations — — 106.9 43.6 — 150.5 Deferred income taxes — — 106.3 23.9 — 130.2 Other liabilities 0.3 — 76.6 41.3 — 118.2 Total liabilities 0.6 1,118.1 545.8 228.9 — 1,893.4 Note payable to (receivable from) affiliates, net 5.0 814.2 (992.8) 173.6 — — Total stockholders' equity 1,368.2 1,373.8 3,305.2 539.1 (5,218.1) 1,368.2 Total liabilities and stockholders' equity $ 1,373.8 $ 3,306.1 $ 2,858.2 $ 941.6 $ (5,218.1) $ 3,261.6 Condensed Consolidating Balance Sheets March 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 1.4 $ 0.2 $ 107.7 $ 183.2 $ — $ 292.5 Receivables, net — — 219.6 114.7 — 334.3 Inventories — — 214.3 102.2 — 316.5 Income tax receivable — — 0.5 2.8 — 3.3 Other current assets — — 12.5 23.8 — 36.3 Total current assets 1.4 0.2 554.6 426.7 — 982.9 Property, plant and equipment, net — — 251.2 131.8 — 383.0 Intangible assets, net — — 411.6 99.9 — 511.5 Goodwill — — 1,017.1 282.6 — 1,299.7 Investment in: Issuer subsidiaries 1,212.1 — — — (1,212.1) — Guarantor subsidiaries — 3,146.0 — — (3,146.0) — Non-guarantor subsidiaries — — 547.4 — (547.4) — Other assets — 1.1 63.1 18.4 — 82.6 Total assets $ 1,213.5 $ 3,147.3 $ 2,845.0 $ 959.4 $ (4,905.5) $ 3,259.7 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 0.1 $ 1.1 $ — $ 1.2 Trade payables — — 129.7 62.0 — 191.7 Compensation and benefits — — 42.4 21.3 — 63.7 Current portion of pension and postretirement benefit obligations — — 1.9 1.4 — 3.3 Other current liabilities 3.0 7.5 90.3 36.3 — 137.1 Total current liabilities 3.0 7.5 264.4 122.1 — 397.0 Long-term debt — 1,213.4 14.4 9.0 — 1,236.8 Pension and postretirement benefit obligations — — 112.9 45.1 — 158.0 Deferred income taxes — — 98.8 27.1 — 125.9 Other liabilities 0.2 — 87.4 23.4 — 111.0 Total liabilities 3.2 1,220.9 577.9 226.7 — 2,028.7 Note (receivable from) payable to affiliates, net (20.7) 714.3 (879.0) 185.4 — — Total stockholders' equity 1,231.0 1,212.1 3,146.1 547.3 (4,905.5) 1,231.0 Total liabilities and stockholders' equity $ 1,213.5 $ 3,147.3 $ 2,845.0 $ 959.4 $ (4,905.5) $ 3,259.7 Condensed Consolidating Statements of Operations For the Nine Months Ended December 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,155.9 $ 487.9 $ (122.5) $ 1,521.3 Cost of sales — — 698.5 343.8 (122.5) 919.8 Gross profit — — 457.4 144.1 — 601.5 Selling, general and administrative expenses — — 242.4 77.6 — 320.0 Restructuring and other similar charges — — 5.7 3.2 — 8.9 Amortization of intangible assets — — 20.8 5.5 — 26.3 Income from operations — — 188.5 57.8 — 246.3 Non-operating (expense) income: Interest (expense) income, net: To third parties — (44.0) (2.1) 0.9 — (45.2) To affiliates 0.5 25.2 (11.3) (14.4) — — (Loss) gain on the extinguishment of debt — (2.1) 3.3 (0.2) — 1.0 Other expense, net — — (0.9) (0.1) — (1.0) Income (loss) before income taxes 0.5 (20.9) 177.5 44.0 — 201.1 Provision for income taxes — — (32.8) (14.9) — (47.7) Equity method investment income — — — 0.2 — 0.2 Income (loss) before equity in earnings of subsidiaries 0.5 (20.9) 144.7 29.3 — 153.6 Equity in income of subsidiaries 151.3 172.2 27.5 — (351.0) — Net income from continuing operations 151.8 151.3 172.2 29.3 (351.0) 153.6 Loss from discontinued operations, net of tax — — — (1.8) — (1.8) Net income 151.8 151.3 172.2 27.5 (351.0) 151.8 Non-controlling interest income — — — 0.2 — 0.2 Net income attributable to Rexnord 151.8 151.3 172.2 27.3 (351.0) 151.6 Dividends on preferred stock (14.4) — — — — (14.4) Net income attributable to Rexnord common stockholders $ 137.4 $ 151.3 $ 172.2 $ 27.3 $ (351.0) $ 137.2 Comprehensive income $ 151.8 $ 149.5 $ 172.3 $ 21.4 $ (351.0) $ 144.0 Condensed Consolidating Statements of Operations For the Three Months Ended December 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 368.0 $ 160.0 $ (36.3) $ 491.7 Cost of sales — — 222.2 114.1 (36.3) 300.0 Gross profit — — 145.8 45.9 — 191.7 Selling, general and administrative expenses — — 76.3 25.4 — 101.7 Restructuring and other similar charges — — 3.0 0.6 — 3.6 Amortization of intangible assets — — 7.0 1.8 — 8.8 Income from operations — — 59.5 18.1 — 77.6 Non-operating (expense) income: Interest (expense) income, net: To third parties — (13.8) (0.8) 0.2 — (14.4) To affiliates 0.1 8.1 2.4 (10.6) — — (Loss) gain on the extinguishment of debt — (2.1) 0.1 (0.2) — (2.2) Other (income) expense, net — (0.1) 0.3 0.6 — 0.8 Income (loss) before income taxes 0.1 (7.9) 61.5 8.1 — 61.8 Provision for income taxes — — (9.7) (3.7) — (13.4) Equity method investment income — — — — — — Income (loss) before equity in earnings of subsidiaries 0.1 (7.9) 51.8 4.4 — 48.4 Equity in income of subsidiaries 48.3 56.2 4.4 — (108.9) — Net income 48.4 48.3 56.2 4.4 (108.9) 48.4 Non-controlling interest loss — — — (0.1) — (0.1) Net income attributable to Rexnord 48.4 48.3 56.2 4.5 (108.9) 48.5 Dividends on preferred stock (2.8) — — — — (2.8) Net income attributable to Rexnord common stockholders $ 45.6 $ 48.3 $ 56.2 $ 4.5 $ (108.9) $ 45.7 Comprehensive income $ 48.4 $ 50.2 $ 56.2 $ 9.8 $ (108.9) $ 55.7 Condensed Consolidating Statements of Operations For the Nine Months Ended December 31, 2018 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,157.8 $ 497.6 $ (142.0) $ 1,513.4 Cost of sales — — 716.1 356.3 (142.0) 930.4 Gross profit — — 441.7 141.3 — 583.0 Selling, general and administrative expenses — — 244.6 79.2 — 323.8 Restructuring and other similar charges — — 6.3 3.1 — 9.4 Amortization of intangible assets — — 20.6 4.8 — 25.4 Income from continuing operations — — 170.2 54.2 — 224.4 Non-operating (expense) income: Interest (expense) income, net: To third parties — (52.8) (1.6) 0.3 — (54.1) To affiliates 1.6 28.6 (21.4) (8.8) — — Gain on extinguishment of debt — — 5.0 — — 5.0 Other income (expense), net — 0.2 3.9 (0.8) — 3.3 Income (loss) before income taxes from continuing operations 1.6 (24.0) 156.1 44.9 — 178.6 Provision for income taxes — — (35.4) (5.4) — (40.8) Equity method investment income — — — 3.5 — 3.5 Income (loss) before equity in earnings of subsidiaries 1.6 (24.0) 120.7 43.0 — 141.3 Equity in (loss) income of subsidiaries (14.6) 9.4 (66.5) — 71.7 — Net (loss) income from continuing operations (13.0) (14.6) 54.2 43.0 71.7 141.3 Loss from discontinued operations, net of tax — — (44.8) (109.5) — (154.3) Net (loss) income (13.0) (14.6) 9.4 (66.5) 71.7 (13.0) Non-controlling interest loss — — — (0.1) — (0.1) Net (loss) income attributable to Rexnord (13.0) (14.6) 9.4 (66.4) 71.7 (12.9) Dividends on preferred stock (17.4) — — — — (17.4) Net (loss) income attributable to Rexnord common stockholders $ (30.4) $ (14.6) $ 9.4 $ (66.4) $ 71.7 $ (30.3) Comprehensive (loss) income $ (13.0) $ (23.6) $ 8.5 $ (79.6) $ 71.7 $ (36.0) Condensed Consolidating Statements of Operations For the Three Months Ended December 31, 2018 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 371.8 $ 156.8 $ (43.6) $ 485.0 Cost of sales — — 236.3 108.0 (43.6) 300.7 Gross profit — — 135.5 48.8 — 184.3 Selling, general and administrative expenses — — 76.5 25.9 — 102.4 Restructuring and other similar charges — — 2.1 0.5 — 2.6 Amortization of intangible assets — — 6.8 1.6 — 8.4 Income from continuing operations — — 50.1 20.8 — 70.9 Non-operating (expense) income: Interest (expense) income, net: To third parties — (16.2) (0.8) 0.2 — (16.8) To affiliates 0.5 9.0 (7.2) (2.3) — — Gain on extinguishment of debt — — 5.0 — — 5.0 Other income, net — 0.1 1.4 0.1 — 1.6 Income (loss) before income taxes from continuing operations 0.5 (7.1) 48.5 18.8 — 60.7 (Provision) benefit for income taxes — — (9.4) 0.3 — (9.1) Equity method investment income — — — 1.3 — 1.3 Income (loss) before equity in earnings of subsidiaries 0.5 (7.1) 39.1 20.4 — 52.9 Equity in income of subsidiaries 24.7 31.8 33.7 — (90.2) — Net income from continuing operations 25.2 24.7 72.8 20.4 (90.2) 52.9 (Loss) income from discontinued operations, net of tax — — (41.1) 13.3 — (27.8) Net income 25.2 24.7 31.7 33.7 (90.2) 25.1 Non-controlling interest loss — — — (0.3) — (0.3) Net income attributable to Rexnord 25.2 24.7 31.7 34.0 (90.2) 25.4 Dividends on preferred stock (5.8) — — — — (5.8) Net income attributable to Rexnord common stockholders $ 19.4 $ 24.7 $ 31.7 $ 34.0 $ (90.2) $ 19.6 Comprehensive income $ 25.1 $ 19.5 $ 29.0 $ 51.1 $ (90.2) $ 34.5 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended December 31, 2019 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by operating activities $ 26.8 $ 100.5 $ 52.2 $ (4.8) $ — $ 174.7 Investing activities Expenditures for property, plant and equipment — — (18.1) (7.4) — (25.5) Acquisitions, net of cash acquired — — (24.8) (0.3) — (25.1) Proceeds from dispositions of long-lived assets — — 1.6 1.3 — 2.9 Net payments associated with divestiture of discontinued operations — — (1.3) — (1.3) Cash used for investing activities — — (41.3) (7.7) — (49.0) Financing activities Proceeds from borrowings of debt — 725.0 — — — 725.0 Repayments of debt — (825.7) (1.2) (8.4) — (835.3) Proceeds from exercise of stock options 16.8 — — — — 16.8 Taxes withheld and paid on employees' share-based payment awards (7.6) — — — — (7.6) Repurchase of common stock (20.0) — — — — (20.0) Payments of preferred stock dividends (17.4) — — — — (17.4) Cash used for financing activities (28.2) (100.7) (1.2) (8.4) — (138.5) Effect of exchange rate changes on cash and cash equivalents — — — (2.7) — (2.7) (Decrease) increase in cash and cash equivalents (1.4) (0.2) 9.7 (23.6) — (15.5) Cash, cash equivalents and restricted cash at beginning of period 1.4 0.2 107.7 183.2 — 292.5 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 117.4 $ 159.6 $ — $ 277.0 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended December 31, 2018 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by operating activities $ 15.9 $ 19.0 $ 103.0 $ 7.4 $ — $ 145.3 Investing activities Expenditures for property, plant and equipment — — (19.1) (7.4) — (26.5) Acquisitions, net of cash acquired — — (2.0) — — (2.0) Proceeds from dispositions of long-lived assets — — 3.5 — — 3.5 Cash dividend from equity method investment — — — 1.3 — 1.3 Net proceeds from divestiture of discontinued operations — — 3.0 6.0 — 9.0 Cash used for investing activities — — (14.6) (0.1) — (14.7) Financing activities Proceeds from borrowings of long-term debt — 247.0 — 2.8 — 249.8 Repayments of debt — (265.8) — (6.9) — (272.7) Proceeds from exercise of stock options 6.6 — — — — 6.6 Taxes withheld and paid on employees' share-based payment awards (3.2) — — — — (3.2) Payments of preferred stock dividends (17.4) — — — — (17.4) Cash used for by financing activities (14.0) (18.8) — (4.1) — (36.9) Effect of exchange rate changes on cash and cash equivalents — — — (14.2) — (14.2) Increase (decrease) in cash and cash equivalents 1.9 0.2 88.4 (11.0) — 79.5 Cash, cash equivalents and restricted cash at beginning of period — — 40.9 176.7 — 217.6 Cash, cash equivalents and restricted cash at end of period $ 1.9 $ 0.2 $ 129.3 $ 165.7 $ — $ 297.1 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 28, 2020, the Company acquired substantially all of the assets of Just Manufacturing Company ("Just Manufacturing") for a total preliminary cash purchase price of approximately $60.0 million, excluding transaction costs and net of cash acquired. The preliminary purchase price is subject to customary post-closing adjustments for variances between estimated asset and liability targets and actual acquisition date net assets acquired. Just Manufacturing, based in Franklin Park, Illinois, manufactures stainless steel sinks and plumbing fixtures primarily used in institutional and commercial end markets and complements the Company's existing Water Management platform. The Company's financial position and results from operations will include Just Manufacturing subsequent to January 28, 2020. As of the date of this filing, the Company has not completed the preliminary allocation of the purchase price to the assets acquired and liabilities assumed. This acquisition is not expected to have a material impact on the Company's consolidated financial statements. On January 27, 2020, the Company's Board of Directors declared an initial quarterly cash dividend on the Company's common stock of $0.08 per-share to be paid on March 6, 2020, to stockholders of record as of February 21, 2020. In addition, the Board of Directors approved increasing the Company’s existing share repurchase authority to $300.0 million of available capacity under the Repurchase Program. See Note 8, Stockholders’ Equity, for additional information about the Repurchase Program. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ( "ASU 2019-12" ) . The FASB issued this update as part of its initiative to reduce complexity in accounting standards. The amendments in this ASU simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and also improve consistent application of other areas by clarifying and amending existing guidance. ASU 2019-12 is effective for the Company in fiscal 2022 and early adoption is permitted. Certain amendments of this ASU may be adopted on a retrospective basis, modified retrospective basis or prospective basis. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements. In June 2016, the FASB ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes Accounting Standards Codification (“ASC”) 326, Financial Instruments - Credit Losses . The ASU revises the measurement of credit losses for financial assets measured at amortized cost from an incurred loss methodology to an expected loss methodology. The ASU affects trade receivables, debt securities, net investment in leases, and most other financial assets that represent a right to receive cash. Additional disclosures about significant estimates and credit quality are also required. In November 2018, the FASB issued ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. This ASU clarifies that receivables from operating leases are accounted for using the lease guidance and not as financial instruments. In May 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief, which amends ASC 326. This ASU provides an option to irrevocably elect to measure certain individual financial assets at fair value instead of amortized cost. ASU 2016-13 is effective for the Company in fiscal 2021. The Company expects that it will adopt the ASU using a modified-retrospective approach. The Company is currently evaluating the impact this guidance will have on its condensed consolidated financial statements and does not anticipate that the guidance will materially impact its condensed consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU 2018-14"), which updates the standard to remove disclosures that no longer are considered cost beneficial, clarifies the specific requirements of disclosures, and adds disclosure requirements identified as relevant. ASU 2018-14 is effective for the Company in fiscal 2021 on a retroactive basis. This guidance will have no impact on the Company's condensed consolidated financial statements upon adoption other than with respect to the updated disclosure requirements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13"), which modifies the disclosure requirements in ASC 820, Fair Value Measurement ("ASC 820"). The Company adopted this ASU on April 1, 2019. There was no impact to the Company's condensed consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU was issued following the enactment of the U.S. Tax Cuts and Jobs Act of 2017 ("Tax Act") and permits entities to elect a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The Company adopted the standard effective April 1, 2019, and did not reclassify tax effects stranded in accumulated other comprehensive loss. As such, there was no impact on the Company’s condensed consolidated financial position, results of operations, and cash flows as a result of the adoption of the ASU. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging - Targeted Improvements to Accounting for Hedging Activities ("ASU 2017-12"), which expands and refines hedge accounting for both non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The Company adopted this ASU on April 1, 2019. There was no impact to the Company's condensed consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , which provides narrow amendments to clarify how to apply certain aspects of the new lease standard, and ASU 2018-11, Leases (Topic 842): Targeted Improvements , which addressed implementation issues related to the new lease standard. These and certain other lease-related ASUs have generally been codified in ASC 842, Leases (“ASC 842”). ASC 842 supersedes the lease accounting requirements in ASC 840, Leases (“ASC 840”). ASC 842 establishes a right-of-use model that requires a lessee to record a right-of-use (“ROU”) asset and a lease liability on the balance sheet for all leases. Under ASC 842, leases are classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The standard also requires disclosures around the amount, timing and uncertainty of cash flows arising from leases. The Company adopted ASC 842 effective April 1, 2019, using a modified retrospective approach. Prior period financial statements continue to be presented under ASC 840 based on the accounting standards originally in effect for such periods. The Company elected certain practical expedients permitted under the transition guidance within ASC 842 to leases that commenced before April 1, 2019, including the package of practical expedients that resulted in the Company not reassessing its prior conclusions under ASC 840 related to lease identification, lease terms, lease classification and initial direct costs for expired and existing leases prior to April 1, 2019, and therefore there was no adjustment to the opening balance of retained earnings. The Company also elected the practical expedient to combine lease and non-lease components for all asset classes, and has made a policy election not to capitalize leases with an initial term of 12 months or less. Upon adoption, the Company recognized ROU assets and lease liabilities of approximately $70.8 million and $73.0 million, respectively, as of April 1, 2019. Adoption of the new standard did not have a significant impact on the Company’s consolidated results of operations or cash flows. See Note 18, Leases for additional information. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to the fiscal 2020 presentation. |
Revenue Recognition | Revenue Recognition A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASC 606, Revenue from Contracts with Customers ("ASC 606"). A contract’s transaction price is allocated to each distinct performance obligation and revenue is recognized when obligations under the terms of a contract with the customer are satisfied. For the majority of the Company's product sales, revenue is recognized at a point-in-time when control of the product is transferred to the customer, which generally occurs when the product is shipped from the Company's manufacturing facility to the customer. When contracts include multiple products to be delivered to the customer, generally each product is separately priced and is determined to be distinct within the context of the contract. Other than a standard assurance-type warranty that the product will conform to agreed-upon specifications, there are generally no other significant post-shipment obligations. The expected costs associated with standard warranties continues to be recognized as an expense when the products are sold. When the contract provides the customer the right to return eligible products or when the customer is part of a sales rebate program, the Company reduces revenue at the point of sale using current facts and historical experience by using an estimate for expected product returns and rebates associated with the transaction. The Company adjusts these estimates at the earlier of when the most likely amount of consideration that is expected to be received changes or when the consideration becomes fixed. Accordingly, an increase or decrease to revenue is recognized at that time. |
Transaction Price Measurement, Tax Exclusion | Sales and other taxes collected concurrent with revenue-producing activities are excluded from revenue. The Company has elected to recognize the cost for freight and shipping when control of products has transferred to the customer as a component of cost of sales in the condensed consolidated statements of operations. 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 condensed consolidated statements of operations. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Preliminary Purchase Price for Business Combination | The purchase price for this business combination is estimated as follows (in millions): Fair value of consideration transferred: Cash paid, net of cash acquired $ 21.4 Other items to be allocated to identifiable assets acquired and liabilities assumed Book value of investment in Centa China at the acquisition date 21.8 Gain recognized from step acquisition 0.2 Fair value of remaining non-controlling interest 2.3 Total $ 45.7 |
Restructuring and Other Simil_2
Restructuring and Other Similar Charges (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the Company's restructuring and other similar charges during the three and nine months ended December 31, 2019 and December 31, 2018 by classification of operating segment (in millions): Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 3.0 $ — $ — $ 3.0 Contract termination and other associated costs 0.2 0.4 — 0.6 Total restructuring and other similar costs $ 3.2 $ 0.4 $ — $ 3.6 Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 7.4 $ 0.4 $ — $ 7.8 Contract termination and other associated costs 0.7 0.4 — 1.1 Total restructuring and other similar costs $ 8.1 $ 0.8 $ — $ 8.9 Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 0.2 $ 0.3 $ — $ 0.5 Contract termination and other associated costs 0.6 0.2 1.3 2.1 Total restructuring and other similar costs $ 0.8 $ 0.5 $ 1.3 $ 2.6 Restructuring and Other Similar Charges Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 3.9 $ 0.6 $ 0.6 $ 5.1 Contract termination and other associated costs 1.6 0.3 2.4 4.3 Total restructuring and other similar costs $ 5.5 $ 0.9 $ 3.0 $ 9.4 |
Summary of Activity in Restructuring Accrual | The following table summarizes the activity in the Company's restructuring accrual for the nine months ended December 31, 2019 (in millions): Employee termination benefits Contract termination and other associated costs Total Restructuring accrual, March 31, 2019 (1) $ 2.4 $ 1.9 $ 4.3 Charges 7.8 1.1 8.9 Cash payments (5.6) (1.6) (7.2) Restructuring accrual, December 31, 2019 (1) $ 4.6 $ 1.4 $ 6.0 ____________________ (1) The restructuring accrual is included in other current liabilities in the condensed consolidated balance sheets. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The major components of Loss from discontinued operations, net of tax presented in the condensed consolidated statements of operations consisted of the following (in millions): Three months ended Nine months ended December 31, 2019 December 31, 2018 (2) December 31, 2019 December 31, 2018 (2) Net sales $ — $ 27.3 $ — $ 124.3 Cost of sales — 20.2 — 94.9 Selling, general and administrative expenses — 10.3 — 35.0 Amortization of intangible assets — — — 0.3 Non-cash asset impairment (1) — — — 126.0 Loss on sale of discontinued operations — 19.7 1.8 19.7 Other non-operating expenses, net — 0.7 — 3.2 Loss from discontinued operations before income tax — (23.6) (1.8) (154.8) Income tax (expense) benefit — (4.2) — 0.5 Loss from discontinued operations, net of tax $ — $ (27.8) $ (1.8) $ (154.3) ____________________ (1) The Company recorded non-cash impairments of $126.0 million during the nine months ended December 31, 2018, to reflect the Company's estimated fair value less costs to sell the VAG business based on the value of preliminary bids received at that time. (2) Results from operations in fiscal 2019 reflect the period through November 26, 2018, the date on which the sale of the VAG business was completed. Nine Months Ended December 31, 2018 Depreciation $ 4.1 Amortization of intangible assets 0.3 Non-cash asset impairment 126.0 Loss on sale of discontinued operations 19.7 Capital expenditures 2.4 Net proceeds from divestiture of discontinued operations 9.0 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenue disaggregated by customer type and geography (in millions): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Original equipment manufacturers/end users $ 186.4 $ 183.6 $ 566.0 $ 561.6 Maintenance, repair, and operations 141.1 143.1 428.6 446.2 Total Process & Motion Control $ 327.5 $ 326.7 $ 994.6 $ 1,007.8 Water safety, quality, flow control and conservation $ 153.4 $ 148.3 $ 490.1 $ 471.2 Water infrastructure 10.8 10.0 36.6 34.4 Total Water Management $ 164.2 $ 158.3 $ 526.7 $ 505.6 Three Months Ended December 31, 2019 Nine Months Ended Process & Motion Control Water Management Process & Motion Control Water Management United States and Canada $ 207.3 $ 159.5 $ 638.3 $ 514.7 Europe 71.0 — 216.7 — Rest of world 49.2 4.7 139.6 12.0 Total $ 327.5 $ 164.2 $ 994.6 $ 526.7 Three Months Ended December 31, 2018 Nine Months Ended Process & Motion Control Water Management Process & Motion Control Water Management United States and Canada $ 214.5 $ 154.5 $ 655.3 $ 494.2 Europe 75.6 — 242.5 — Rest of world 36.6 3.8 110.0 11.4 Total $ 326.7 $ 158.3 $ 1,007.8 $ 505.6 |
Changes in Contract Assets and Liabilities | The following table presents changes in the Company’s contract assets and liabilities during the nine months ended December 31, 2019 (in millions): Balance Sheet Classification March 31, 2019 Additions Deductions December 31, 2019 Contract assets Receivables, net $ 2.6 $ 1.4 $ (3.3) $ 0.7 Contract liabilities (1) Other current liabilities $ 5.1 $ 14.3 $ (14.5) $ 4.9 ____________________ |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the basis for income per share computations (in millions, except share amounts): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Basic net income (loss) per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 48.4 $ 52.9 $ 153.6 $ 141.3 Less: Non-controlling interest (loss) income (0.1) (0.3) 0.2 (0.1) Less: Dividends on preferred stock 2.8 5.8 14.4 17.4 Net income from continuing operations attributable to Rexnord common stockholders $ 45.7 $ 47.4 $ 139.0 $ 124.0 Loss from discontinued operations, net of tax $ — $ (27.8) $ (1.8) $ (154.3) Net income (loss) attributable to Rexnord common stockholders $ 45.7 $ 19.6 $ 137.2 $ (30.3) Denominator: Weighted-average common shares outstanding, basic 113,448 104,777 108,250 104,562 Diluted net income (loss) per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 48.4 $ 52.9 $ 153.6 $ 141.3 Less: Non-controlling interest (loss) income (0.1) (0.3) 0.2 (0.1) Less: Dividends on preferred stock — — — — Net income from continuing operations attributable to Rexnord common stockholders $ 48.5 $ 53.2 $ 153.4 $ 141.4 Loss from discontinued operations, net of tax $ — $ (27.8) $ (1.8) $ (154.3) Net income (loss) attributable to Rexnord common stockholders $ 45.7 $ 19.6 $ 137.2 $ (30.3) Plus: Dividends on preferred stock 2.8 5.8 14.4 17.4 Net income (loss) attributable to Rexnord common stockholders $ 48.5 $ 25.4 $ 151.6 $ (12.9) Denominator: Weighted-average common shares outstanding, basic 113,448 104,777 108,250 104,562 Effect of dilutive equity securities 2,246 2,289 2,253 2,794 Preferred stock under the "if-converted" method (1) 7,989 15,979 13,307 15,979 Weighted-average common shares outstanding, diluted 123,683 123,045 123,810 123,335 ____________________ (1) During the third quarter of fiscal 2020, the Company issued 15,980,050 shares of common stock upon the mandatory conversion of Preferred stock; see Note 8, Stockholders' Equity for additional information. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity | Stockholders' equity consists of the following (in millions): Common stock Preferred stock Additional Retained Accumulated Non-controlling interest (2) Total Balance at March 31, 2018 $ 1.0 $ — $ 1,277.8 $ 8.0 $ (74.1) $ 0.1 $ 1,212.8 Total comprehensive (loss) income — — — (0.7) (33.9) 0.1 (34.5) Stock-based compensation expense — — 6.0 — — — 6.0 Proceeds from exercise of stock options — — 2.9 — — — 2.9 Taxes withheld and paid on employees' share-based payment awards — — (0.4) — — — (0.4) Preferred stock dividends ($14.375 per share) — — — (5.8) — — (5.8) Balance at June 30, 2018 $ 1.0 $ — $ 1,286.3 $ 1.5 $ (108.0) $ 0.2 $ 1,181.0 Total comprehensive (loss) income — — — (37.6) 1.5 0.1 (36.0) Stock-based compensation expense — — 5.8 — — — 5.8 Proceeds from exercise of stock options — — 2.1 — — — 2.1 Taxes withheld and paid on employees' share-based payment awards — — (2.8) — — — (2.8) Preferred stock dividends ($14.375 per share) — — (5.8) — — — (5.8) Balance at September 30, 2018 $ 1.0 $ — $ 1,285.6 $ (36.1) $ (106.5) $ 0.3 $ 1,144.3 Total comprehensive income (loss) — — — 25.4 9.4 (0.3) 34.5 Stock-based compensation expense — — 5.5 — — — 5.5 Proceeds from exercise of stock options — — 1.6 — — — 1.6 Preferred stock dividends ($14.375 per share) — — (5.8) — — — (5.8) Balance at December 31, 2018 $ 1.0 $ — $ 1,286.9 $ (10.7) $ (97.1) $ — $ 1,180.1 Common stock (1) Preferred stock Additional Retained Accumulated Non-controlling interest (2) Total Balance at March 31, 2019 $ 1.0 $ — $ 1,293.5 $ 30.7 $ (96.6) $ 2.4 $ 1,231.0 Total comprehensive income — — — 46.5 — 0.2 46.7 Stock-based compensation expense — — 6.9 — — — 6.9 Proceeds from exercise of stock options — — 4.8 — — — 4.8 Taxes withheld and paid on employees' share-based payment awards — — (5.7) — — — (5.7) Preferred stock dividends ($14.375 per share) — — — (5.8) — — (5.8) Balance at June 30, 2019 $ 1.0 $ — $ 1,299.5 $ 71.4 $ (96.6) $ 2.6 $ 1,277.9 Total comprehensive income (loss) — — — 56.6 (15.1) 0.1 41.6 Stock-based compensation expense — — 5.9 — — — 5.9 Proceeds from exercise of stock options — — 2.1 — — — 2.1 Acquisition of non-controlling interest — — (0.3) — — — (0.3) Preferred stock dividends ($14.375 per share) — — — (5.8) — — (5.8) Balance at September 30, 2019 $ 1.0 $ — $ 1,307.2 $ 122.2 $ (111.7) $ 2.7 $ 1,321.4 Total comprehensive income (loss) — — — 48.5 7.3 (0.1) 55.7 Stock-based compensation expense — — 5.9 — — — 5.9 Proceeds from exercise of stock options — — 9.9 — — — 9.9 Mandatory conversion of preferred stock to common stock (3) 0.2 — (0.2) — — — — Taxes withheld and paid on employees' share-based payment awards — — (1.9) — — — (1.9) Repurchase of common stock (4) — — — (20.0) — — (20.0) Preferred stock dividends ($14.375 per share) — — — (2.8) — — (2.8) Balance at December 31, 2019 $ 1.2 $ — $ 1,320.9 $ 147.9 $ (104.4) $ 2.6 $ 1,368.2 ____________________ (1) For the three and nine months ended December 31, 2019, the Company issued 563,779 and 1,672,978 shares of common stock, respectively, upon the exercise of stock options and vesting of restricted stock units and performance stock units. (2) During fiscal 2019, represents a 30% non-controlling interest in two Process & Motion Control controlled subsidiaries. During the second quarter of fiscal 2020, the Company acquired the remaining 30% non-controlling interest associated with one of the aforementioned Process & Motion Control joint ventures for a cash purchase price of $0.3 million. Following this transaction, represents a 30% non-controlling interest in the remaining Process & Motion Control controlled subsidiary and a 5% non-controlling interest in another Process & Motion Control joint venture relationship. (3) During the third quarter of fiscal 2020, the Company issued 15,980,050 shares of common stock upon the mandatory conversion of preferred stock; see "Preferred Stock" below. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, for the nine months ended December 31, 2019 are as follows (in millions): Interest Rate Derivatives Foreign Currency Translation Pension and Postretirement Plans Total Balance at March 31, 2019 $ 0.8 $ (60.1) $ (37.3) $ (96.6) Other comprehensive loss before reclassifications — (8.2) — (8.2) Amounts reclassified from accumulated other comprehensive loss — — 0.4 0.4 Net current period other comprehensive (loss) income — (8.2) 0.4 (7.8) Balance at December 31, 2019 $ 0.8 $ (68.3) $ (36.9) $ (104.4) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the three and nine months ended December 31, 2019 and December 31, 2018 (in millions): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Income Statement Line Pension and other postretirement plans Amortization of prior service credit $ — $ (0.3) $ (0.2) $ (0.9) Other (expense) income, net Settlement — — 0.8 — Other (expense) income, net Provision (benefit) for income taxes — 0.1 (0.2) 0.3 Total net of tax $ — $ (0.2) $ 0.4 $ (0.6) Interest rate derivatives Net realized losses on interest rate hedges $ — $ 0.4 $ — $ 5.7 Interest expense, net Benefit for income taxes — (0.1) — (1.4) Total net of tax $ — $ 0.3 $ — $ 4.3 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Inventory, Net [Abstract] | |
Summary of Major Classes of Inventories | The major classes of inventories are summarized as follows (in millions): December 31, 2019 March 31, 2019 Finished goods $ 164.8 $ 147.3 Work in progress 46.6 39.8 Purchased components 77.3 76.7 Raw materials 59.6 53.9 Inventories at First-in, First-Out ("FIFO") cost 348.3 317.7 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 1.0 (1.2) $ 349.3 $ 316.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The changes in the net carrying value of goodwill for the nine months ended December 31, 2019 by operating segment are presented below (in millions): Process & Motion Control Water Management Consolidated Net carrying amount as of March 31, 2019 $ 1,125.2 $ 174.5 $ 1,299.7 Currency translation adjustments (1.6) 0.2 (1.4) Acquisition (1) — 12.7 12.7 Purchase accounting adjustments 0.4 — 0.4 Net carrying amount as of December 31, 2019 $ 1,124.0 $ 187.4 $ 1,311.4 ____________________ (1) Refer to Note 2, Acquisitions 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 December 31, 2019 and March 31, 2019 are as follows (in millions): December 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 51.1 $ (40.9) $ 10.2 Customer relationships (including distribution network) 13 years 719.7 (545.7) 174.0 Tradenames 13 years 41.0 (13.6) 27.4 Intangible assets not subject to amortization - tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,092.7 $ (600.2) $ 492.5 March 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 50.9 $ (39.8) $ 11.1 Customer relationships (including distribution network) 13 years 713.5 (523.1) 190.4 Tradenames 13 years 40.4 (11.3) 29.1 Intangible assets not subject to amortization - tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,085.7 $ (574.2) $ 511.5 |
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 December 31, 2019 and March 31, 2019 are as follows (in millions): December 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 51.1 $ (40.9) $ 10.2 Customer relationships (including distribution network) 13 years 719.7 (545.7) 174.0 Tradenames 13 years 41.0 (13.6) 27.4 Intangible assets not subject to amortization - tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,092.7 $ (600.2) $ 492.5 March 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 50.9 $ (39.8) $ 11.1 Customer relationships (including distribution network) 13 years 713.5 (523.1) 190.4 Tradenames 13 years 40.4 (11.3) 29.1 Intangible assets not subject to amortization - tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,085.7 $ (574.2) $ 511.5 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are summarized as follows (in millions): December 31, 2019 March 31, 2019 Contract liabilities $ 4.9 $ 5.1 Sales rebates 38.2 35.3 Commissions 5.3 6.8 Restructuring and other similar charges (1) 6.0 4.3 Product warranty (2) 6.3 7.2 Risk management (3) 10.6 10.5 Legal and environmental 2.0 2.6 Taxes, other than income taxes 7.3 7.8 Income tax payable 10.8 20.3 Interest payable 2.0 7.7 Current portion of operating lease liability (4) 11.2 — Other 12.2 29.5 $ 116.8 $ 137.1 ____________________ (1) See more information related to the restructuring obligations within Note 3, Restructuring and Other Similar Charges. (2) See more information related to the product warranty obligations within Note 16, Commitments and Contingencies. (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. (4) See more information related to leases within Note 18, Leases. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt is summarized as follows (in millions): December 31, 2019 March 31, 2019 Term loan (1) $ 620.6 $ 718.4 4.875% Senior Notes due 2025 (2) 495.5 495.0 Finance leases and other subsidiary debt (3) 32.5 24.6 Total 1,148.6 1,238.0 Less current maturities 1.4 1.2 Long-term debt $ 1,147.2 $ 1,236.8 ____________________ (1) Includes unamortized debt issuance costs of $4.4 million and $6.6 million at December 31, 2019 and March 31, 2019, respectively. (2) Includes unamortized debt issuance costs of $4.5 million and $5.0 million at December 31, 2019 and March 31, 2019, respectively. (3) See more information related to finance leases within Note 18, Leases. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Recognized at Fair Value on a Recurring Basis | The following table provides a summary of the Company's assets and liabilities that were recognized at fair value on a recurring basis as of December 31, 2019 and March 31, 2019 (in millions): Fair Value as of December 31, 2019 Level 1 Level 2 Level 3 Total Deferred compensation assets $ 1.3 $ 6.8 $ — $ 8.1 Deferred compensation liabilities 8.3 — — 8.3 Fair Value as of March 31, 2019 Level 1 Level 2 Level 3 Total Deferred compensation assets $ 2.3 $ 3.7 $ — $ 6.0 Deferred compensation liabilities 6.1 — — 6.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in the Company's product warranty liability (in millions): Nine Months Ended December 31, 2019 December 31, 2018 Balance at beginning of period $ 7.2 $ 7.7 Charged to operations 2.2 1.5 Claims settled (3.1) (1.8) Balance at end of period $ 6.3 $ 7.4 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost are as follows (in millions): Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Pension Benefits: Service cost $ 0.2 $ 0.1 $ 0.4 $ 0.3 Interest cost 5.5 5.8 16.5 17.4 Expected return on plan assets (5.7) (6.6) (17.0) (19.8) Settlement — — 0.8 — Net periodic benefit (credit) cost $ — $ (0.7) $ 0.7 $ (2.1) Other Postretirement Benefits: Interest cost $ 0.2 $ 0.2 $ 0.5 $ 0.6 Amortization: Prior service credit — (0.3) (0.2) (0.9) Net periodic benefit cost (credit) $ 0.2 $ (0.1) $ 0.3 $ (0.3) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
ROU Assets and Lease Liability Balances | ROU assets and lease liability balances recorded on the condensed consolidated balance sheets are summarized as follows (in millions): Leases Classification December 31, 2019 Assets: Operating ROU assets Other assets $ 45.6 Finance ROU assets Property, plant and equipment, net (1) 26.7 Total ROU assets $ 72.3 Liabilities: Current Operating Other current liabilities $ 11.2 Finance Current maturities of debt 0.4 Non-current Operating Other liabilities 36.7 Finance Long-term debt 26.8 Total lease liabilities $ 75.1 ____________________ Lease Term and Discount Rate December 31, 2019 Weighted-average remaining lease terms (years): Operating leases 5.0 Finance leases 28.6 Weighted-average discount rate: Operating leases 3.9 % Finance leases 5.7 % |
Components of Lease Expense | The components of lease expense reported in the condensed consolidated statements of operations are as follows (in millions): Three Months Ended Nine Months Ended December 31, 2019 Operating lease expenses (1) $ 3.9 $ 11.2 Finance lease expenses: Depreciation of finance ROU assets (1) 0.3 0.8 Interest on lease liabilities (2) 0.5 1.2 Total finance lease expense 0.8 2.0 Variable and short-term lease expense (1) 1.0 3.3 Total lease expense $ 5.7 $ 16.5 ____________________ (1) Included in cost of sales and selling, general and administrative expenses. (2) Included in interest expense, net. Nine Months Ended December 31, 2019 Operating cash flows from operating leases $ 10.8 Operating cash flows from finance leases 1.2 Financing cash flows from finance leases 0.3 ROU assets obtained in exchange for lease liabilities are as follows (in millions): Nine Months Ended December 31, 2019 Operating leases $ 12.0 |
Future Minimum Lease Payments, Finance Leases | Future minimum lease payments under operating and finance leases as of December 31, 2019 are as follows (in millions): Years ending March 31, Operating Leases (1) Finance Leases (1) 2020 (excluding the nine months ended December 31, 2019) $ 3.2 $ 0.5 2021 12.6 1.9 2022 10.4 1.9 2023 9.1 1.9 2024 6.5 1.9 Thereafter 11.4 46.2 Total future minimum lease payments 53.2 54.3 Less: Imputed interest (5.3) (27.1) Total lease liabilities $ 47.9 $ 27.2 ____________________ |
Future Minimum Lease Payments, Operating Leases | Future minimum lease payments under operating and finance leases as of December 31, 2019 are as follows (in millions): Years ending March 31, Operating Leases (1) Finance Leases (1) 2020 (excluding the nine months ended December 31, 2019) $ 3.2 $ 0.5 2021 12.6 1.9 2022 10.4 1.9 2023 9.1 1.9 2024 6.5 1.9 Thereafter 11.4 46.2 Total future minimum lease payments 53.2 54.3 Less: Imputed interest (5.3) (27.1) Total lease liabilities $ 47.9 $ 27.2 ____________________ |
Schedule of Future Minimum Rental Payments for Operating Leases for Topic 840 | Future minimum rental payments for leases with initial terms in excess of one year as of March 31, 2019 are as follows (in millions): Years ending March 31: 2020 $ 14.6 2021 11.8 2022 9.6 2023 8.7 2024 6.4 Thereafter 56.3 Total future minimum lease payments $ 107.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Stock Option Activity | During the nine months ended December 31, 2019, the Company granted the following stock options, restricted stock units, and performance stock units to directors, executive officers, and certain other employees: Award Type Number of Awards Weighted Average Grant-Date Fair Value Stock options 154,934 $ 9.50 Restricted stock units 421,697 $ 27.51 Performance stock units 324,619 $ 27.50 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Business Segment Information: (in Millions) Three Months Ended Nine Months Ended December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Net sales Process & Motion Control $ 327.5 $ 326.7 $ 994.6 $ 1,007.8 Water Management (1) 164.2 158.3 526.7 505.6 Consolidated net sales 491.7 485.0 1,521.3 1,513.4 Income from operations Process & Motion Control 53.6 53.4 167.0 159.7 Water Management (1) 37.6 33.1 121.3 110.9 Corporate (13.6) (15.6) (42.0) (46.2) Consolidated income from operations 77.6 70.9 246.3 224.4 Non-operating expense: Interest expense, net (14.4) (16.8) (45.2) (54.1) (Loss) gain on the extinguishment of debt (2.2) 5.0 1.0 5.0 Other income (expense), net 0.8 1.6 (1.0) 3.3 Income before income taxes 61.8 60.7 201.1 178.6 Provision for income taxes (13.4) (9.1) (47.7) (40.8) Equity method investment income — 1.3 0.2 3.5 Net income from continuing operations 48.4 52.9 153.6 141.3 Loss from discontinued operations, net of tax — (27.8) (1.8) (154.3) Net income (loss) 48.4 25.1 151.8 (13.0) Non-controlling interest (loss) income (0.1) (0.3) 0.2 (0.1) Net income (loss) attributable to Rexnord 48.5 25.4 151.6 (12.9) Dividends on preferred stock (2.8) (5.8) (14.4) (17.4) Net income (loss) attributable to Rexnord common stockholders $ 45.7 $ 19.6 $ 137.2 $ (30.3) Depreciation and amortization Process & Motion Control $ 14.9 $ 15.7 $ 44.5 $ 47.4 Water Management (1) 6.6 6.2 19.5 18.6 Corporate 0.1 — 0.3 — Consolidated $ 21.6 $ 21.9 $ 64.3 $ 66.0 Capital expenditures Process & Motion Control $ 9.6 $ 6.8 $ 20.0 $ 20.1 Water Management (1) 2.7 1.2 5.5 4.0 Consolidated $ 12.3 $ 8.0 $ 25.5 $ 24.1 ____________________ (1) Amounts reflect Water Management continuing operations. |
Guarantor Subsidiaries (Tables)
Guarantor Subsidiaries (Tables) | 9 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | Condensed Consolidating Balance Sheets December 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ — $ — $ 117.4 $ 159.6 $ — $ 277.0 Receivables, net — — 181.0 102.1 — 283.1 Inventories — — 242.8 106.5 — 349.3 Income tax receivable — — 9.6 1.6 — 11.2 Other current assets — — 18.0 30.0 — 48.0 Total current assets — — 568.8 399.8 — 968.6 Property, plant and equipment, net — — 247.7 125.1 — 372.8 Intangible assets, net — — 399.0 93.5 — 492.5 Goodwill — — 1,029.8 281.6 — 1,311.4 Investment in: Issuer subsidiaries 1,373.8 — — — (1,373.8) — Guarantor subsidiaries — 3,305.2 — — (3,305.2) — Non-guarantor subsidiaries — — 539.1 — (539.1) — Other assets — 0.9 73.8 41.6 — 116.3 Total assets $ 1,373.8 $ 3,306.1 $ 2,858.2 $ 941.6 $ (5,218.1) $ 3,261.6 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 0.5 $ 0.9 $ — $ 1.4 Trade payables — — 120.4 58.0 — 178.4 Compensation and benefits — — 28.5 18.9 — 47.4 Current portion of pension and postretirement benefit obligations — — 1.9 1.4 — 3.3 Other current liabilities 0.3 1.9 77.8 36.8 — 116.8 Total current liabilities 0.3 1.9 229.1 116.0 — 347.3 Long-term debt — 1,116.2 26.9 4.1 — 1,147.2 Pension and postretirement benefit obligations — — 106.9 43.6 — 150.5 Deferred income taxes — — 106.3 23.9 — 130.2 Other liabilities 0.3 — 76.6 41.3 — 118.2 Total liabilities 0.6 1,118.1 545.8 228.9 — 1,893.4 Note payable to (receivable from) affiliates, net 5.0 814.2 (992.8) 173.6 — — Total stockholders' equity 1,368.2 1,373.8 3,305.2 539.1 (5,218.1) 1,368.2 Total liabilities and stockholders' equity $ 1,373.8 $ 3,306.1 $ 2,858.2 $ 941.6 $ (5,218.1) $ 3,261.6 Condensed Consolidating Balance Sheets March 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 1.4 $ 0.2 $ 107.7 $ 183.2 $ — $ 292.5 Receivables, net — — 219.6 114.7 — 334.3 Inventories — — 214.3 102.2 — 316.5 Income tax receivable — — 0.5 2.8 — 3.3 Other current assets — — 12.5 23.8 — 36.3 Total current assets 1.4 0.2 554.6 426.7 — 982.9 Property, plant and equipment, net — — 251.2 131.8 — 383.0 Intangible assets, net — — 411.6 99.9 — 511.5 Goodwill — — 1,017.1 282.6 — 1,299.7 Investment in: Issuer subsidiaries 1,212.1 — — — (1,212.1) — Guarantor subsidiaries — 3,146.0 — — (3,146.0) — Non-guarantor subsidiaries — — 547.4 — (547.4) — Other assets — 1.1 63.1 18.4 — 82.6 Total assets $ 1,213.5 $ 3,147.3 $ 2,845.0 $ 959.4 $ (4,905.5) $ 3,259.7 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 0.1 $ 1.1 $ — $ 1.2 Trade payables — — 129.7 62.0 — 191.7 Compensation and benefits — — 42.4 21.3 — 63.7 Current portion of pension and postretirement benefit obligations — — 1.9 1.4 — 3.3 Other current liabilities 3.0 7.5 90.3 36.3 — 137.1 Total current liabilities 3.0 7.5 264.4 122.1 — 397.0 Long-term debt — 1,213.4 14.4 9.0 — 1,236.8 Pension and postretirement benefit obligations — — 112.9 45.1 — 158.0 Deferred income taxes — — 98.8 27.1 — 125.9 Other liabilities 0.2 — 87.4 23.4 — 111.0 Total liabilities 3.2 1,220.9 577.9 226.7 — 2,028.7 Note (receivable from) payable to affiliates, net (20.7) 714.3 (879.0) 185.4 — — Total stockholders' equity 1,231.0 1,212.1 3,146.1 547.3 (4,905.5) 1,231.0 Total liabilities and stockholders' equity $ 1,213.5 $ 3,147.3 $ 2,845.0 $ 959.4 $ (4,905.5) $ 3,259.7 |
Condensed Consolidating Statement of Operations | Condensed Consolidating Statements of Operations For the Nine Months Ended December 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,155.9 $ 487.9 $ (122.5) $ 1,521.3 Cost of sales — — 698.5 343.8 (122.5) 919.8 Gross profit — — 457.4 144.1 — 601.5 Selling, general and administrative expenses — — 242.4 77.6 — 320.0 Restructuring and other similar charges — — 5.7 3.2 — 8.9 Amortization of intangible assets — — 20.8 5.5 — 26.3 Income from operations — — 188.5 57.8 — 246.3 Non-operating (expense) income: Interest (expense) income, net: To third parties — (44.0) (2.1) 0.9 — (45.2) To affiliates 0.5 25.2 (11.3) (14.4) — — (Loss) gain on the extinguishment of debt — (2.1) 3.3 (0.2) — 1.0 Other expense, net — — (0.9) (0.1) — (1.0) Income (loss) before income taxes 0.5 (20.9) 177.5 44.0 — 201.1 Provision for income taxes — — (32.8) (14.9) — (47.7) Equity method investment income — — — 0.2 — 0.2 Income (loss) before equity in earnings of subsidiaries 0.5 (20.9) 144.7 29.3 — 153.6 Equity in income of subsidiaries 151.3 172.2 27.5 — (351.0) — Net income from continuing operations 151.8 151.3 172.2 29.3 (351.0) 153.6 Loss from discontinued operations, net of tax — — — (1.8) — (1.8) Net income 151.8 151.3 172.2 27.5 (351.0) 151.8 Non-controlling interest income — — — 0.2 — 0.2 Net income attributable to Rexnord 151.8 151.3 172.2 27.3 (351.0) 151.6 Dividends on preferred stock (14.4) — — — — (14.4) Net income attributable to Rexnord common stockholders $ 137.4 $ 151.3 $ 172.2 $ 27.3 $ (351.0) $ 137.2 Comprehensive income $ 151.8 $ 149.5 $ 172.3 $ 21.4 $ (351.0) $ 144.0 Condensed Consolidating Statements of Operations For the Three Months Ended December 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 368.0 $ 160.0 $ (36.3) $ 491.7 Cost of sales — — 222.2 114.1 (36.3) 300.0 Gross profit — — 145.8 45.9 — 191.7 Selling, general and administrative expenses — — 76.3 25.4 — 101.7 Restructuring and other similar charges — — 3.0 0.6 — 3.6 Amortization of intangible assets — — 7.0 1.8 — 8.8 Income from operations — — 59.5 18.1 — 77.6 Non-operating (expense) income: Interest (expense) income, net: To third parties — (13.8) (0.8) 0.2 — (14.4) To affiliates 0.1 8.1 2.4 (10.6) — — (Loss) gain on the extinguishment of debt — (2.1) 0.1 (0.2) — (2.2) Other (income) expense, net — (0.1) 0.3 0.6 — 0.8 Income (loss) before income taxes 0.1 (7.9) 61.5 8.1 — 61.8 Provision for income taxes — — (9.7) (3.7) — (13.4) Equity method investment income — — — — — — Income (loss) before equity in earnings of subsidiaries 0.1 (7.9) 51.8 4.4 — 48.4 Equity in income of subsidiaries 48.3 56.2 4.4 — (108.9) — Net income 48.4 48.3 56.2 4.4 (108.9) 48.4 Non-controlling interest loss — — — (0.1) — (0.1) Net income attributable to Rexnord 48.4 48.3 56.2 4.5 (108.9) 48.5 Dividends on preferred stock (2.8) — — — — (2.8) Net income attributable to Rexnord common stockholders $ 45.6 $ 48.3 $ 56.2 $ 4.5 $ (108.9) $ 45.7 Comprehensive income $ 48.4 $ 50.2 $ 56.2 $ 9.8 $ (108.9) $ 55.7 Condensed Consolidating Statements of Operations For the Nine Months Ended December 31, 2018 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,157.8 $ 497.6 $ (142.0) $ 1,513.4 Cost of sales — — 716.1 356.3 (142.0) 930.4 Gross profit — — 441.7 141.3 — 583.0 Selling, general and administrative expenses — — 244.6 79.2 — 323.8 Restructuring and other similar charges — — 6.3 3.1 — 9.4 Amortization of intangible assets — — 20.6 4.8 — 25.4 Income from continuing operations — — 170.2 54.2 — 224.4 Non-operating (expense) income: Interest (expense) income, net: To third parties — (52.8) (1.6) 0.3 — (54.1) To affiliates 1.6 28.6 (21.4) (8.8) — — Gain on extinguishment of debt — — 5.0 — — 5.0 Other income (expense), net — 0.2 3.9 (0.8) — 3.3 Income (loss) before income taxes from continuing operations 1.6 (24.0) 156.1 44.9 — 178.6 Provision for income taxes — — (35.4) (5.4) — (40.8) Equity method investment income — — — 3.5 — 3.5 Income (loss) before equity in earnings of subsidiaries 1.6 (24.0) 120.7 43.0 — 141.3 Equity in (loss) income of subsidiaries (14.6) 9.4 (66.5) — 71.7 — Net (loss) income from continuing operations (13.0) (14.6) 54.2 43.0 71.7 141.3 Loss from discontinued operations, net of tax — — (44.8) (109.5) — (154.3) Net (loss) income (13.0) (14.6) 9.4 (66.5) 71.7 (13.0) Non-controlling interest loss — — — (0.1) — (0.1) Net (loss) income attributable to Rexnord (13.0) (14.6) 9.4 (66.4) 71.7 (12.9) Dividends on preferred stock (17.4) — — — — (17.4) Net (loss) income attributable to Rexnord common stockholders $ (30.4) $ (14.6) $ 9.4 $ (66.4) $ 71.7 $ (30.3) Comprehensive (loss) income $ (13.0) $ (23.6) $ 8.5 $ (79.6) $ 71.7 $ (36.0) Condensed Consolidating Statements of Operations For the Three Months Ended December 31, 2018 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 371.8 $ 156.8 $ (43.6) $ 485.0 Cost of sales — — 236.3 108.0 (43.6) 300.7 Gross profit — — 135.5 48.8 — 184.3 Selling, general and administrative expenses — — 76.5 25.9 — 102.4 Restructuring and other similar charges — — 2.1 0.5 — 2.6 Amortization of intangible assets — — 6.8 1.6 — 8.4 Income from continuing operations — — 50.1 20.8 — 70.9 Non-operating (expense) income: Interest (expense) income, net: To third parties — (16.2) (0.8) 0.2 — (16.8) To affiliates 0.5 9.0 (7.2) (2.3) — — Gain on extinguishment of debt — — 5.0 — — 5.0 Other income, net — 0.1 1.4 0.1 — 1.6 Income (loss) before income taxes from continuing operations 0.5 (7.1) 48.5 18.8 — 60.7 (Provision) benefit for income taxes — — (9.4) 0.3 — (9.1) Equity method investment income — — — 1.3 — 1.3 Income (loss) before equity in earnings of subsidiaries 0.5 (7.1) 39.1 20.4 — 52.9 Equity in income of subsidiaries 24.7 31.8 33.7 — (90.2) — Net income from continuing operations 25.2 24.7 72.8 20.4 (90.2) 52.9 (Loss) income from discontinued operations, net of tax — — (41.1) 13.3 — (27.8) Net income 25.2 24.7 31.7 33.7 (90.2) 25.1 Non-controlling interest loss — — — (0.3) — (0.3) Net income attributable to Rexnord 25.2 24.7 31.7 34.0 (90.2) 25.4 Dividends on preferred stock (5.8) — — — — (5.8) Net income attributable to Rexnord common stockholders $ 19.4 $ 24.7 $ 31.7 $ 34.0 $ (90.2) $ 19.6 Comprehensive income $ 25.1 $ 19.5 $ 29.0 $ 51.1 $ (90.2) $ 34.5 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statements of Cash Flows For the Nine Months Ended December 31, 2019 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by operating activities $ 26.8 $ 100.5 $ 52.2 $ (4.8) $ — $ 174.7 Investing activities Expenditures for property, plant and equipment — — (18.1) (7.4) — (25.5) Acquisitions, net of cash acquired — — (24.8) (0.3) — (25.1) Proceeds from dispositions of long-lived assets — — 1.6 1.3 — 2.9 Net payments associated with divestiture of discontinued operations — — (1.3) — (1.3) Cash used for investing activities — — (41.3) (7.7) — (49.0) Financing activities Proceeds from borrowings of debt — 725.0 — — — 725.0 Repayments of debt — (825.7) (1.2) (8.4) — (835.3) Proceeds from exercise of stock options 16.8 — — — — 16.8 Taxes withheld and paid on employees' share-based payment awards (7.6) — — — — (7.6) Repurchase of common stock (20.0) — — — — (20.0) Payments of preferred stock dividends (17.4) — — — — (17.4) Cash used for financing activities (28.2) (100.7) (1.2) (8.4) — (138.5) Effect of exchange rate changes on cash and cash equivalents — — — (2.7) — (2.7) (Decrease) increase in cash and cash equivalents (1.4) (0.2) 9.7 (23.6) — (15.5) Cash, cash equivalents and restricted cash at beginning of period 1.4 0.2 107.7 183.2 — 292.5 Cash, cash equivalents and restricted cash at end of period $ — $ — $ 117.4 $ 159.6 $ — $ 277.0 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended December 31, 2018 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by operating activities $ 15.9 $ 19.0 $ 103.0 $ 7.4 $ — $ 145.3 Investing activities Expenditures for property, plant and equipment — — (19.1) (7.4) — (26.5) Acquisitions, net of cash acquired — — (2.0) — — (2.0) Proceeds from dispositions of long-lived assets — — 3.5 — — 3.5 Cash dividend from equity method investment — — — 1.3 — 1.3 Net proceeds from divestiture of discontinued operations — — 3.0 6.0 — 9.0 Cash used for investing activities — — (14.6) (0.1) — (14.7) Financing activities Proceeds from borrowings of long-term debt — 247.0 — 2.8 — 249.8 Repayments of debt — (265.8) — (6.9) — (272.7) Proceeds from exercise of stock options 6.6 — — — — 6.6 Taxes withheld and paid on employees' share-based payment awards (3.2) — — — — (3.2) Payments of preferred stock dividends (17.4) — — — — (17.4) Cash used for by financing activities (14.0) (18.8) — (4.1) — (36.9) Effect of exchange rate changes on cash and cash equivalents — — — (14.2) — (14.2) Increase (decrease) in cash and cash equivalents 1.9 0.2 88.4 (11.0) — 79.5 Cash, cash equivalents and restricted cash at beginning of period — — 40.9 176.7 — 217.6 Cash, cash equivalents and restricted cash at end of period $ 1.9 $ 0.2 $ 129.3 $ 165.7 $ — $ 297.1 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies - Effect of New Accounting Pronouncement (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Apr. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating ROU assets | $ 45.6 | |
Total lease liabilities | $ 47.9 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating ROU assets | $ 70.8 | |
Total lease liabilities | $ 73 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | May 10, 2019 | Jan. 23, 2019 | Sep. 24, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 22, 2019 |
Business Acquisition [Line Items] | ||||||||||
Cash paid, net of cash acquired | $ 25.1 | $ 2 | ||||||||
Goodwill | $ 1,311.4 | $ 1,299.7 | 1,311.4 | |||||||
Reclassification of foreign currency translation adjustments | 0 | $ 19.7 | 0 | $ 19.7 | ||||||
Centa China | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Additional interest, percent | 47.50% | |||||||||
Ownership interest, percent | 47.50% | |||||||||
East Creek Corporation | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid, net of cash acquired | $ 24.8 | |||||||||
Goodwill | 12.7 | 12.7 | ||||||||
Other intangible assets | 8 | 8 | ||||||||
Trade working capital | 1.9 | 1.9 | ||||||||
Other liabilities | 2.2 | 2.2 | ||||||||
Increase (decrease) in goodwill | (1.2) | |||||||||
East Creek Corporation | Tradenames | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Other intangible assets | 0.7 | 0.7 | ||||||||
East Creek Corporation | Customer Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Other intangible assets | 7.3 | 7.3 | ||||||||
Process & Motion Control Joint Venture | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid, net of cash acquired | $ 0.3 | |||||||||
Centa China | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash paid, net of cash acquired | $ 21.4 | |||||||||
Goodwill | 20.5 | 20.5 | ||||||||
Other intangible assets | 20.1 | 20.1 | ||||||||
Trade working capital | 7.1 | 7.1 | ||||||||
Other liabilities | 2 | 2 | ||||||||
Increase (decrease) in goodwill | 0.4 | |||||||||
Gain recognized | 0.2 | 0.2 | ||||||||
Reclassification of foreign currency translation adjustments | $ 1.8 | |||||||||
Payments to acquire business | $ 45.7 | |||||||||
Centa China | Tradenames | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Other intangible assets | 1.3 | 1.3 | ||||||||
Centa China | Customer Relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Other intangible assets | $ 18.8 | $ 18.8 | ||||||||
Asset Acquisition 2018, Design And Distribution Assets | Water Management | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Payments to acquire business | $ 2 |
Acquisitions - Schedule of Prel
Acquisitions - Schedule of Preliminary Purchase Price (Details) - USD ($) $ in Millions | Jan. 23, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of consideration transferred: | ||||
Cash paid, net of cash acquired | $ 25.1 | $ 2 | ||
Centa China | ||||
Fair value of consideration transferred: | ||||
Cash paid, net of cash acquired | $ 21.4 | |||
Other items to be allocated to identifiable assets acquired and liabilities assumed | ||||
Book value of investment in Centa China at the acquisition date | 21.8 | |||
Gain recognized from step acquisition | 0.2 | $ 0.2 | ||
Fair value of remaining non-controlling interest | 2.3 | |||
Total | $ 45.7 |
Restructuring and Other Simil_3
Restructuring and Other Similar Charges - Costs to Date by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | $ 3.6 | $ 2.6 | $ 8.9 | $ 9.4 |
Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 3 | 0.5 | 7.8 | 5.1 |
Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0.6 | 2.1 | 1.1 | 4.3 |
Operating Segments | Process & Motion Control | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 3.2 | 0.8 | 8.1 | 5.5 |
Operating Segments | Process & Motion Control | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 3 | 0.2 | 7.4 | 3.9 |
Operating Segments | Process & Motion Control | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0.2 | 0.6 | 0.7 | 1.6 |
Operating Segments | Water Management | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0.4 | 0.5 | 0.8 | 0.9 |
Operating Segments | Water Management | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0 | 0.3 | 0.4 | 0.6 |
Operating Segments | Water Management | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0.4 | 0.2 | 0.4 | 0.3 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0 | 1.3 | 0 | 3 |
Corporate | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0 | 0 | 0 | 0.6 |
Corporate | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | $ 0 | $ 1.3 | $ 0 | $ 2.4 |
Restructuring and Other Simil_4
Restructuring and Other Similar Charges - Reserve Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring accrual, beginning period | $ 4.3 | |||
Charges | $ 3.6 | $ 2.6 | 8.9 | $ 9.4 |
Cash payments | (7.2) | |||
Restructuring accrual, ending period | 6 | 6 | ||
Employee termination benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring accrual, beginning period | 2.4 | |||
Charges | 3 | 0.5 | 7.8 | 5.1 |
Cash payments | (5.6) | |||
Restructuring accrual, ending period | 4.6 | 4.6 | ||
Contract termination and other associated costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring accrual, beginning period | 1.9 | |||
Charges | 0.6 | $ 2.1 | 1.1 | $ 4.3 |
Cash payments | (1.6) | |||
Restructuring accrual, ending period | $ 1.4 | $ 1.4 |
Restructuring and Other Simil_5
Restructuring and Other Similar Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | ||||
Accelerated depreciation | $ 0.7 | $ 1.2 | $ 2 | $ 3.7 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations, net of tax | $ 0 | $ (27.8) | $ (1.8) | $ (154.3) |
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations, net of tax | $ 0 | $ (27.8) | $ (1.8) | $ (154.3) |
Discontinued Operations - Loss
Discontinued Operations - Loss From Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Loss from discontinued operations, net of tax | $ 0 | $ (27.8) | $ (1.8) | $ (154.3) |
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 0 | 27.3 | 0 | 124.3 |
Cost of sales | 0 | 20.2 | 0 | 94.9 |
Selling, general and administrative expenses | 0 | 10.3 | 0 | 35 |
Amortization of intangible assets | 0 | 0 | 0 | 0.3 |
Non-cash asset impairment | 0 | 0 | 0 | 126 |
Loss on sale of discontinued operations | 0 | 19.7 | 1.8 | 19.7 |
Other non-operating expenses, net | 0 | 0.7 | 0 | 3.2 |
Loss from discontinued operations before income tax | 0 | (23.6) | (1.8) | (154.8) |
Income tax (expense) benefit | 0 | (4.2) | 0 | 0.5 |
Loss from discontinued operations, net of tax | $ 0 | $ (27.8) | $ (1.8) | $ (154.3) |
Discontinued Operations - Other
Discontinued Operations - Other Significant Operating Non-Cash Items (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net proceeds from divestiture of discontinued operations | $ (1.3) | $ 9 | ||
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation | 4.1 | |||
Amortization of intangible assets | 0.3 | |||
Non-cash asset impairment | $ 0 | $ 0 | $ 0 | 126 |
Loss on sale of discontinued operations | 19.7 | |||
Capital expenditures | 2.4 | |||
Net proceeds from divestiture of discontinued operations | $ 9 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 9 Months Ended |
Dec. 31, 2019USD ($)segment | |
Revenue from Contract with Customer [Abstract] | |
Number of business segments | segment | 2 |
Performance obligations expected to be satisfied | $ 389,500,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Impairment loss recognized | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation, expected timing | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Percentage of remaining performance obligation, expected timing | 1 year |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated by Customer Type and Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 491.7 | $ 485 | $ 1,521.3 | $ 1,513.4 |
Process & Motion Control | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 327.5 | 326.7 | 994.6 | 1,007.8 |
Process & Motion Control | United States and Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 207.3 | 214.5 | 638.3 | 655.3 |
Process & Motion Control | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 71 | 75.6 | 216.7 | 242.5 |
Process & Motion Control | Rest of world | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 49.2 | 36.6 | 139.6 | 110 |
Process & Motion Control | Original equipment manufacturers/end users | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 186.4 | 183.6 | 566 | 561.6 |
Process & Motion Control | Maintenance, repair, and operations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 141.1 | 143.1 | 428.6 | 446.2 |
Water Management | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 164.2 | 158.3 | 526.7 | 505.6 |
Water Management | United States and Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 159.5 | 154.5 | 514.7 | 494.2 |
Water Management | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 0 | 0 | 0 | 0 |
Water Management | Rest of world | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 4.7 | 3.8 | 12 | 11.4 |
Water Management | Water safety, quality, flow control and conservation | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 153.4 | 148.3 | 490.1 | 471.2 |
Water Management | Water infrastructure | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 10.8 | $ 10 | $ 36.6 | $ 34.4 |
Revenue Recognition - Change in
Revenue Recognition - Change in Contract with Customer, Asset and Liability (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Contract assets | |
Contract assets, beginning balance | $ 2.6 |
Contract assets, additions | 1.4 |
Contract assets, deductions | (3.3) |
Contract assets, ending balance | 0.7 |
Contract liabilities | |
Contract liabilities, beginning balance | 5.1 |
Contract liabilities, additions | 14.3 |
Contract liabilities, deductions | (14.5) |
Contract liabilities, ending balance | $ 4.9 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | ||||||
Income tax provision | $ 13.4 | $ 9.1 | $ 47.7 | $ 40.8 | ||
Effective income tax rate | 21.70% | 15.00% | 23.70% | 22.80% | ||
Total liability for net unrecognized tax benefits | $ 17.9 | $ 17.9 | $ 21.8 | |||
Accrued interest and penalties | $ 2.1 | 2.1 | $ 4.3 | |||
Net interest and penalties recognized as income tax expense | $ 0.7 | $ 0.4 | ||||
Domestic Tax Authority | Internal Revenue Service (IRS) | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Amount paid upon conclusion of income tax examination | $ 0.4 |
Earnings per Share - Earnings p
Earnings per Share - Earnings per Share Computation (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | ||||
Net income from continuing operations | $ 48.4 | $ 52.9 | $ 153.6 | $ 141.3 |
Less: Non-controlling interest (loss) income | (0.1) | (0.3) | 0.2 | (0.1) |
Less: Dividends on preferred stock | 2.8 | 5.8 | 14.4 | 17.4 |
Net income from continuing operations attributable to Rexnord common stockholders | 48.5 | 53.2 | 153.4 | 141.4 |
Net income from continuing operations attributable to Rexnord common stockholders | 45.7 | 47.4 | 139 | 124 |
Loss from discontinued operations, net of tax | 0 | (27.8) | (1.8) | (154.3) |
Net income (loss) attributable to Rexnord common stockholders | 45.7 | 19.6 | 137.2 | (30.3) |
Plus: Dividends on preferred stock | 2.8 | 5.8 | 14.4 | 17.4 |
Net income (loss) attributable to Rexnord common stockholders | $ 48.5 | $ 25.4 | $ 151.6 | $ (12.9) |
Denominator: | ||||
Weighted-average common shares outstanding, basic (in shares) | 113,448 | 104,777 | 108,250 | 104,562 |
Effect of dilutive equity securities (in shares) | 2,246 | 2,289 | 2,253 | 2,794 |
Preferred stock under the if-converted method (in shares) | 7,989 | 15,979 | 13,307 | 15,979 |
Diluted (in shares) | 123,683 | 123,045 | 123,810 | 123,335 |
Earnings per Share - Narrative
Earnings per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.7 | 2.3 | 1.1 | 1 |
Stockholders' Equity - Roll For
Stockholders' Equity - Roll Forward (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | $ 1,321.4 | $ 1,277.9 | $ 1,231 | $ 1,144.3 | $ 1,181 | $ 1,212.8 | $ 1,231 | $ 1,212.8 |
Total comprehensive income | 55.7 | 41.6 | 46.7 | 34.5 | (36) | (34.5) | 144 | (36) |
Stock-based compensation expense | 5.9 | 5.9 | 6.9 | 5.5 | 5.8 | 6 | ||
Proceeds from exercise of stock options | 9.9 | 2.1 | 4.8 | 1.6 | 2.1 | 2.9 | ||
Mandatory conversion of preferred stock to common stock (3) | 0 | |||||||
Taxes withheld and paid on employees' share-based payment awards | (1.9) | (5.7) | (2.8) | (0.4) | ||||
Acquisition of non-controlling interest | (0.3) | |||||||
Repurchase of common stock | (20) | (20) | ||||||
Preferred stock dividends ($14.375 per share) | (2.8) | (5.8) | (5.8) | (5.8) | (5.8) | (5.8) | ||
Ending Balance | $ 1,368.2 | $ 1,321.4 | $ 1,277.9 | $ 1,180.1 | $ 1,144.3 | $ 1,181 | $ 1,368.2 | $ 1,180.1 |
Preferred stock dividends (in dollars per share) | $ 14.375 | $ 14.375 | $ 14.375 | $ 14.375 | $ 14.375 | $ 14.375 | ||
Common stock issued (in shares) | 563,779 | 1,672,978 | ||||||
Acquisition of non-controlling interest | $ 0.3 | |||||||
Preferred stock under the if-converted method (in shares) | 7,989,000 | 15,979,000 | 13,307,000 | 15,979,000 | ||||
Repurchased and canceled shares (in shares) | 639,500 | |||||||
Cost of repurchased and canceled shares of common stock | $ 20 | $ 20 | ||||||
Average price of repurchased and canceled shares of common stock (in dollars per share) | $ 31.30 | |||||||
Process & Motion Control Subsidiaries | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Non-controlling interest | 30.00% | 30.00% | 30.00% | |||||
Common stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 |
Mandatory conversion of preferred stock to common stock (3) | 0.2 | |||||||
Ending Balance | 1.2 | 1 | 1 | 1 | 1 | 1 | 1.2 | 1 |
Preferred stock | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Additional paid-in capital | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 1,307.2 | 1,299.5 | 1,293.5 | 1,285.6 | 1,286.3 | 1,277.8 | 1,293.5 | 1,277.8 |
Stock-based compensation expense | 5.9 | 5.9 | 6.9 | 5.5 | 5.8 | 6 | ||
Proceeds from exercise of stock options | 9.9 | 2.1 | 4.8 | 1.6 | 2.1 | 2.9 | ||
Mandatory conversion of preferred stock to common stock (3) | (0.2) | |||||||
Taxes withheld and paid on employees' share-based payment awards | (1.9) | (5.7) | (2.8) | (0.4) | ||||
Acquisition of non-controlling interest | (0.3) | |||||||
Preferred stock dividends ($14.375 per share) | (5.8) | (5.8) | 0 | |||||
Ending Balance | 1,320.9 | 1,307.2 | 1,299.5 | 1,286.9 | 1,285.6 | 1,286.3 | 1,320.9 | 1,286.9 |
Acquisition of non-controlling interest | 0.3 | |||||||
Retained earnings | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 122.2 | 71.4 | 30.7 | (36.1) | 1.5 | 8 | 30.7 | 8 |
Total comprehensive income | 48.5 | 56.6 | 46.5 | 25.4 | (37.6) | (0.7) | ||
Repurchase of common stock | (20) | |||||||
Preferred stock dividends ($14.375 per share) | (2.8) | (5.8) | (5.8) | (5.8) | ||||
Ending Balance | 147.9 | 122.2 | 71.4 | (10.7) | (36.1) | 1.5 | 147.9 | (10.7) |
Cost of repurchased and canceled shares of common stock | 20 | |||||||
Accumulated other comprehensive (loss) income | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | (111.7) | (96.6) | (96.6) | (106.5) | (108) | (74.1) | (96.6) | (74.1) |
Total comprehensive income | 7.3 | (15.1) | 9.4 | 1.5 | (33.9) | |||
Ending Balance | (104.4) | (111.7) | (96.6) | (97.1) | (106.5) | (108) | (104.4) | (97.1) |
Non-controlling Interest | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning Balance | 2.7 | 2.6 | 2.4 | 0.3 | 0.2 | 0.1 | 2.4 | 0.1 |
Total comprehensive income | (0.1) | 0.1 | 0.2 | (0.3) | 0.1 | 0.1 | ||
Ending Balance | $ 2.6 | $ 2.7 | $ 2.6 | $ 0 | $ 0.3 | $ 0.2 | $ 2.6 | $ 0 |
Centa China | Process & Motion Control Joint Venture | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Non-controlling interest | 5.00% | 5.00% |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2015 | |
Class of Stock [Line Items] | |||||
Preferred stock under the if-converted method (in shares) | 7,989,000 | 15,979,000 | 13,307,000 | 15,979,000 | |
Redeemable Convertible Preferred Stock | |||||
Class of Stock [Line Items] | |||||
Shares converted (in shares) | 402,500 | ||||
Dividend rate, percentage | 5.75% | ||||
Preferred stock under the if-converted method (in shares) | 15,980,050 | ||||
Shares issued (in shares) | 0 | 0 | |||
Dividends on preferred stock | $ 5,800,000 | $ 17,400,000 | |||
Common stock | |||||
Class of Stock [Line Items] | |||||
Common stock repurchase program amount | $ 200,000,000 | ||||
Repurchased common stock (in shares) | 639,500 | ||||
Repurchased common stock amount | $ 20,000,000 | ||||
Repurchased common stock average price (in dollars per share) | $ 31.30 | ||||
Remaining amount of repurchase authority | $ 140,000,000 | $ 140,000,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2019USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | $ 1,231 |
Ending Balance | 1,368.2 |
Interest Rate Derivatives | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | 0.8 |
Other comprehensive loss before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current period other comprehensive (loss) income | 0 |
Ending Balance | 0.8 |
Foreign Currency Translation | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (60.1) |
Other comprehensive loss before reclassifications | (8.2) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current period other comprehensive (loss) income | (8.2) |
Ending Balance | (68.3) |
Pension and Postretirement Plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (37.3) |
Other comprehensive loss before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0.4 |
Net current period other comprehensive (loss) income | 0.4 |
Ending Balance | (36.9) |
AOCI Attributable to Parent | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning Balance | (96.6) |
Other comprehensive loss before reclassifications | (8.2) |
Amounts reclassified from accumulated other comprehensive loss | 0.4 |
Net current period other comprehensive (loss) income | (7.8) |
Ending Balance | $ (104.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension and other postretirement plans | ||||
Other income (expense), net | $ 0.8 | $ 1.6 | $ (1) | $ 3.3 |
Provision (benefit) for income taxes | (13.4) | (9.1) | (47.7) | (40.8) |
Net income (loss) | (48.4) | (25.1) | (151.8) | 13 |
Interest rate derivatives | ||||
Provision (benefit) for income taxes | (13.4) | (9.1) | (47.7) | (40.8) |
Net income (loss) | (48.4) | (25.1) | (151.8) | 13 |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent | ||||
Pension and other postretirement plans | ||||
Other income (expense), net | (0.3) | (0.2) | (0.9) | |
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment Attributable To Parent, Settlement | ||||
Pension and other postretirement plans | ||||
Other income (expense), net | 0.8 | 0 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Defined Benefit Plans Adjustment | ||||
Pension and other postretirement plans | ||||
Provision (benefit) for income taxes | 0.1 | (0.2) | 0.3 | |
Net income (loss) | 0 | (0.2) | 0.4 | (0.6) |
Interest rate derivatives | ||||
Provision (benefit) for income taxes | 0.1 | (0.2) | 0.3 | |
Net income (loss) | $ 0 | (0.2) | 0.4 | (0.6) |
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 other postretirement plans | ||||
Provision (benefit) for income taxes | (0.1) | (1.4) | ||
Net income (loss) | 0.3 | 4.3 | ||
Interest rate derivatives | ||||
Interest expense, net | 0.4 | 5.7 | ||
Provision (benefit) for income taxes | (0.1) | (1.4) | ||
Net income (loss) | $ 0.3 | $ 4.3 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Interest Rate Contract | ||||
Pension and other postretirement plans | ||||
Provision (benefit) for income taxes | 0 | |||
Interest rate derivatives | ||||
Interest expense, net | 0 | |||
Provision (benefit) for income taxes | $ 0 |
Inventories - Inventory by Cate
Inventories - Inventory by Category (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Inventory, Net [Abstract] | ||
Finished goods | $ 164.8 | $ 147.3 |
Work in progress | 46.6 | 39.8 |
Purchased components | 77.3 | 76.7 |
Raw materials | 59.6 | 53.9 |
Inventories at First-in, First-Out ("FIFO") cost | 348.3 | 317.7 |
Adjustment to state inventories at Last-in, First-Out ("LIFO") cost | 1 | (1.2) |
Inventories | $ 349.3 | $ 316.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Net Carrying Value (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Net carrying amount, beginning of period | $ 1,299.7 |
Currency translation adjustments | (1.4) |
Acquisition | 12.7 |
Purchase accounting adjustments | 0.4 |
Net carrying amount, end of period | 1,311.4 |
Operating Segments | Process & Motion Control | |
Goodwill [Roll Forward] | |
Net carrying amount, beginning of period | 1,125.2 |
Currency translation adjustments | (1.6) |
Acquisition | 0 |
Purchase accounting adjustments | 0.4 |
Net carrying amount, end of period | 1,124 |
Operating Segments | Water Management | |
Goodwill [Roll Forward] | |
Net carrying amount, beginning of period | 174.5 |
Currency translation adjustments | 0.2 |
Acquisition | 12.7 |
Purchase accounting adjustments | 0 |
Net carrying amount, end of period | $ 187.4 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2019 | Mar. 31, 2019 | |
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 13 years | 13 years |
Accumulated Amortization | $ (600.2) | $ (574.2) |
Intangible assets not subject to amortization - tradenames | ||
Gross Carrying Amount | 1,092.7 | 1,085.7 |
Net Carrying Amount | $ 492.5 | $ 511.5 |
Patents | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 10 years | 10 years |
Gross Carrying Amount | $ 51.1 | $ 50.9 |
Accumulated Amortization | (40.9) | (39.8) |
Net Carrying Amount | $ 10.2 | $ 11.1 |
Customer relationships (including distribution network) | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 13 years | 13 years |
Gross Carrying Amount | $ 719.7 | $ 713.5 |
Accumulated Amortization | (545.7) | (523.1) |
Net Carrying Amount | $ 174 | $ 190.4 |
Tradenames | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 13 years | 13 years |
Gross Carrying Amount | $ 41 | $ 40.4 |
Accumulated Amortization | (13.6) | (11.3) |
Net Carrying Amount | 27.4 | 29.1 |
Tradenames | ||
Intangible assets not subject to amortization - tradenames | ||
Carrying Amount | $ 280.9 | $ 280.9 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset amortization expense | $ 8.8 | $ 8.4 | $ 26.3 | $ 25.4 |
Amortization expense in fiscal year 2020 | 35.1 | 35.1 | ||
Amortization expense in fiscal year 2021 | 34 | 34 | ||
Amortization expense in fiscal year 2022 | 29.7 | 29.7 | ||
Amortization expense in fiscal year 2023 | 15.4 | 15.4 | ||
Amortization expense in fiscal year 2024 | 14.6 | 14.6 | ||
Amortization expense in fiscal year 2025 | $ 14.3 | $ 14.3 | ||
Tradenames | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average useful life of intangible assets acquired | 15 years | |||
Customer Relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average useful life of intangible assets acquired | 14 years |
Other Current Liabilities - By
Other Current Liabilities - By Category (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 116.8 | $ 137.1 |
Contract liabilities | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 4.9 | 5.1 |
Sales rebates | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 38.2 | 35.3 |
Commissions | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 5.3 | 6.8 |
Restructuring and other similar charges | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 6 | 4.3 |
Product warranty | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 6.3 | 7.2 |
Risk management | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 10.6 | 10.5 |
Legal and environmental | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 2 | 2.6 |
Taxes, other than income taxes | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 7.3 | 7.8 |
Income tax payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 10.8 | 20.3 |
Interest payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 2 | 7.7 |
Current portion of operating lease liability | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 11.2 | 0 |
Other | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 12.2 | $ 29.5 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 07, 2017 |
Debt Instrument [Line Items] | |||
Total | $ 1,148.6 | $ 1,238 | |
Less current maturities | 1.4 | 1.2 | |
Long-term debt | 1,147.2 | 1,236.8 | |
Term loan | Credit Facility | |||
Debt Instrument [Line Items] | |||
Total | 620.6 | 718.4 | |
Unamortized debt issuance costs | 4.4 | 6.6 | |
4.875% Senior Notes Due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Total | 495.5 | 495 | |
Unamortized debt issuance costs | $ 4.5 | $ 5 | |
Interest rate | 4.875% | 4.875% | 4.875% |
Finance leases and other subsidiary debt | Other Debt | |||
Debt Instrument [Line Items] | |||
Total | $ 32.5 | $ 24.6 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Dec. 06, 2019USD ($) | Nov. 21, 2019 | Nov. 20, 2019USD ($) | Dec. 07, 2017USD ($)Rate | Dec. 31, 2015USD ($)plantRate | Dec. 31, 2019USD ($)Rate | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($)Rate | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)Rate | Dec. 31, 2018USD ($) | Mar. 31, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Proceeds from borrowings of debt | $ 725,000,000 | $ 249,800,000 | ||||||||||
Line of credit facility, unused capacity, daily aggregate commitment threshold of outstanding principal (less than) | Rate | 50.00% | |||||||||||
Loss on extinguishment of debt | $ (2,200,000) | $ 5,000,000 | $ 1,000,000 | $ 5,000,000 | ||||||||
Outstanding principal | $ 1,148,600,000 | $ 1,238,000,000 | $ 1,148,600,000 | |||||||||
Manufacturing Facility | North America | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Number of plants | plant | 2 | |||||||||||
Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused capacity, commitment fee percentage | 0.50% | |||||||||||
Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused capacity, commitment fee percentage | Rate | 0.375% | |||||||||||
London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin | Rate | 1.20% | |||||||||||
Senior Secured Credit Facility | Senior Secured Leverage Ratio (Numerator) | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Covenant terms, company's ratio | Rate | 675.00% | 675.00% | ||||||||||
Term Refinancing Loan Facility | Senior Secured Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | $ 725,000,000 | $ 725,000,000 | $ 725,000,000 | $ 800,000,000 | ||||||||
Remaining borrowing capacity | 625,000,000 | 625,000,000 | ||||||||||
Loss on extinguishment of debt | (1,500,000) | |||||||||||
Refinancing related costs | 700,000 | |||||||||||
Non-cash write-off of debt issuance costs | 800,000 | |||||||||||
Capitalized direct costs | 100,000 | |||||||||||
Revolving Credit Facility | Senior Secured Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 264,000,000 | 264,000,000 | ||||||||||
Amounts borrowed | 0 | 0 | 0 | |||||||||
Letters of credit outstanding, amount | $ 5,100,000 | 5,600,000 | $ 5,100,000 | |||||||||
Credit Facility | Senior Secured Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Voluntary prepayment | $ 100,000,000 | 75,000,000 | ||||||||||
Covenant terms, company's ratio | Rate | 200.00% | 200.00% | ||||||||||
Loss on extinguishment of debt | $ (700,000) | |||||||||||
Unamortized debt issuance costs | $ 4,400,000 | 6,600,000 | $ 4,400,000 | |||||||||
Outstanding principal | $ 620,600,000 | $ 718,400,000 | $ 620,600,000 | |||||||||
Amended Term Refinancing Loan Facility | Senior Secured Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Weighted-average effective interest rate | 351.00% | 351.00% | ||||||||||
LIBOR floor | 0.00% | |||||||||||
Weighted-average interest rate, over time | 415.00% | |||||||||||
Amended Term Refinancing Loan Facility | Senior Secured Credit Facility | London Interbank Offered Rate (LIBOR), Scenario One | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin | 1.75% | 2.00% | ||||||||||
Amended Term Refinancing Loan Facility | Senior Secured Credit Facility | London Interbank Offered Rate (LIBOR), Scenario Two | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Applicable margin | 0.75% | 1.00% | ||||||||||
Senior Notes | 4.875% Senior Notes Due 2025 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | Rate | 4.875% | 4.875% | 4.875% | 4.875% | ||||||||
Proceeds from borrowings of debt | $ 500,000,000 | |||||||||||
Unamortized debt issuance costs | $ 4,500,000 | $ 5,000,000 | $ 4,500,000 | |||||||||
Outstanding principal | 495,500,000 | 495,000,000 | 495,500,000 | |||||||||
Notes Payable, Other Payables | Accounts Receivable Securitization Program | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Maximum borrowing capacity | 100,000,000 | 100,000,000 | ||||||||||
Remaining borrowing capacity | 89,100,000 | 100,000,000 | 89,100,000 | |||||||||
Amounts borrowed | 0 | 0 | 0 | |||||||||
Letters of credit outstanding, amount | 6,900,000 | $ 7,100,000 | 6,900,000 | |||||||||
Notes Payable, Other Payables | New Market Tax Credit - Phase 2 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Proceeds from borrowings of long-term debt | $ 9,800,000 | |||||||||||
Notes Payable, Other Payables | New Market Tax Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Payments to acquire loans receivable | $ 27,600,000 | |||||||||||
Loan receivable, terms | 30 years | |||||||||||
Loan receivable, stated percentage | Rate | 2.00% | |||||||||||
Forgiven associated loans | 23,400,000 | |||||||||||
Related loans receivable forgiven | $ 17,900,000 | |||||||||||
Loss on extinguishment of debt | $ 3,200,000 | 5,000,000 | ||||||||||
Unamortized debt issuance costs | $ 500,000 | $ 500,000 | ||||||||||
Outstanding principal | 14,000,000 | |||||||||||
Loans receivable | $ 9,700,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | $ 8.1 | $ 6 |
Deferred compensation liabilities | 8.3 | 6.1 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 1.3 | 2.3 |
Deferred compensation liabilities | 8.3 | 6.1 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 6.8 | 3.7 |
Deferred compensation liabilities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation assets | 0 | 0 |
Deferred compensation liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 1,176.2 | $ 1,238.1 |
Commitments and Contingencies -
Commitments and Contingencies - Warranty Roll Forward (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 7.2 | $ 7.7 |
Charged to operations | 2.2 | 1.5 |
Claims settled | (3.1) | (1.8) |
Balance at end of period | $ 6.3 | $ 7.4 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) lawsuit in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2019USD ($)claimantlawsuitcarrier | Mar. 31, 2013USD ($) | Dec. 31, 2002defendantrelease | |
Loss Contingencies [Line Items] | |||
Indemnification resulting from business acquisition, amount (in excess of) | $ 900,000,000 | ||
Number of carriers, if insolvent, could impact coverage | carrier | 1 | ||
Environmental Issue | Ellsworth Industrial Park Site | |||
Loss Contingencies [Line Items] | |||
Number of releases, or threatened releases, chlorinated solvents (or more) | release | 1 | ||
Indemnification resulting from business acquisition, percentage of costs paid to date by seller | 100.00% | ||
Environmental Issue | Ellsworth Industrial Park Site | Minimum | |||
Loss Contingencies [Line Items] | |||
Number of defendants | defendant | 10 | ||
Asbestos Issue | Stearns | |||
Loss Contingencies [Line Items] | |||
Indemnification resulting from business acquisition, percentage of costs paid to date by seller | 100.00% | ||
Number of claimants | claimant | 300 | ||
Asbestos Issue | Prager | |||
Loss Contingencies [Line Items] | |||
Insurance coverage, percentage of costs paid to date by insurance providers | 100.00% | ||
Asbestos Issue | Falk | |||
Loss Contingencies [Line Items] | |||
Indemnification resulting from business acquisition, percentage of costs paid to date by seller | 100.00% | ||
Number of claimants | claimant | 100 | ||
Asbestos Issue | Zurn | |||
Loss Contingencies [Line Items] | |||
Number of claimants | claimant | 7,000 | ||
Number of lawsuits | lawsuit | 5 | ||
Time frame of claims expected to be filed | 10 years | ||
Insurance for asbestos claims | $ 40,000,000 | ||
Estimated claim payments made over specified period | $ 30,000,000 | ||
Time frame of estimated claims disbursements | 10 years | ||
Damages from Product Defects | Zurn | |||
Loss Contingencies [Line Items] | |||
Claim settlement funding period | 7 years | ||
Litigation settlement | $ 20,000,000 |
Retirement Benefits - Schedule
Retirement Benefits - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0.2 | $ 0.1 | $ 0.4 | $ 0.3 |
Interest cost | 5.5 | 5.8 | 16.5 | 17.4 |
Expected return on plan assets | (5.7) | (6.6) | (17) | (19.8) |
Settlement | 0 | 0 | 0.8 | |
Amortization: | ||||
Net periodic benefit (credit) cost | 0 | (0.7) | 0.7 | (2.1) |
Other Postretirement Benefits: | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 0.2 | 0.2 | 0.5 | 0.6 |
Amortization: | ||||
Prior service credit | 0 | (0.3) | (0.2) | (0.9) |
Net periodic benefit (credit) cost | $ 0.2 | $ (0.1) | $ 0.3 | $ (0.3) |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |||
Contributions by employer | $ 0.2 | $ 1.1 | |
Cash contribution to purchase the annuity contract | $ 3.9 | ||
Non-cash pre-tax losses from termination of plan | $ 0.8 |
Leases - ROU Assets and Lease L
Leases - ROU Assets and Lease Liability Balances (Details) $ in Millions | Dec. 31, 2019USD ($) |
Assets | |
Operating ROU assets | $ 45.6 |
Finance ROU assets | 26.7 |
Total ROU assets | 72.3 |
Current | |
Operating | 11.2 |
Finance | 0.4 |
Non-current | |
Operating | 36.7 |
Finance | 26.8 |
Total lease liabilities | 75.1 |
Finance lease assets, net of accumulated amortization | $ 0.8 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expenses | $ 3.9 | $ 11.2 |
Finance lease expenses: | ||
Depreciation of finance ROU assets | 0.3 | 0.8 |
Interest on lease liabilities | 0.5 | 1.2 |
Total finance lease expense | 0.8 | 2 |
Variable and short-term lease expense | 1 | 3.3 |
Total lease expense | $ 5.7 | $ 16.5 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Mar. 31, 2019 |
Operating Leases | ||
2020 | $ 3.2 | |
2021 | 12.6 | |
2022 | 10.4 | |
2023 | 9.1 | |
2024 | 6.5 | |
Thereafter | 11.4 | |
Total future minimum lease payments | 53.2 | |
Less: Imputed interest | (5.3) | |
Total lease liabilities | 47.9 | |
Finance Leases | ||
2020 | 0.5 | |
2021 | 1.9 | |
2022 | 1.9 | |
2023 | 1.9 | |
2024 | 1.9 | |
Thereafter | 46.2 | |
Total future minimum lease payments | 54.3 | |
Less: Imputed interest | (27.1) | |
Total lease liabilities | $ 27.2 | |
Operating Leases, Topic 840 | ||
2020 | $ 14.6 | |
2021 | 11.8 | |
2022 | 9.6 | |
2023 | 8.7 | |
2024 | 6.4 | |
Thereafter | 56.3 | |
Total future minimum lease payments | $ 107.4 |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Terms (Details) | Dec. 31, 2019Rate |
Weighted-average remaining lease terms (years): | |
Operating leases | 5 years |
Finance leases | 28 years 7 months 6 days |
Weighted-average discount rate: | |
Operating leases | 3.90% |
Finance leases | 5.70% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2019USD ($) | |
Cash Flow, Lessee [Abstract] | |
Operating cash flows from operating leases | $ 10.8 |
Operating cash flows from finance leases | 1.2 |
Financing cash flows from finance leases | 0.3 |
Right-Of-Use Asset Obtained In Exchange For Lease Liability [Abstract] | |
Operating leases | $ 12 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Apr. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Financing lease obligation (derecognized) | $ (27.2) | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Financing lease obligation (derecognized) | $ 23 | |
Property, Plant and Equipment | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Financing lease obligation (derecognized) | (4.6) | |
Other Liabilities | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Financing lease obligation (derecognized) | $ (3) |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||
Stock-based compensation expense | $ 5.9 | $ 5.7 | $ 18.7 | $ 17.3 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options, Restricted Stock Units, and Performance Stock Units (Details) | 9 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards (in shares) | shares | 154,934 |
Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 9.50 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards (in shares) | shares | 421,697 |
Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 27.51 |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards (in shares) | shares | 324,619 |
Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 27.50 |
Business Segment Information -
Business Segment Information - Narrative (Details) | 9 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Business Segment Information _2
Business Segment Information - Schedule of Segment Reporting Information, By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Net sales | $ 491.7 | $ 485 | $ 1,521.3 | $ 1,513.4 |
Income from operations | 77.6 | 70.9 | 246.3 | 224.4 |
Non-operating expense: | ||||
Interest expense, net | (14.4) | (16.8) | (45.2) | (54.1) |
(Loss) gain on the extinguishment of debt | (2.2) | 5 | 1 | 5 |
Other income (expense), net | 0.8 | 1.6 | (1) | 3.3 |
Income (loss) before income taxes from continuing operations | 61.8 | 60.7 | 201.1 | 178.6 |
Provision for income taxes | (13.4) | (9.1) | (47.7) | (40.8) |
Equity method investment income | 0 | 1.3 | 0.2 | 3.5 |
Net income from continuing operations | 48.4 | 52.9 | 153.6 | 141.3 |
Loss from discontinued operations, net of tax | 0 | (27.8) | (1.8) | (154.3) |
Net income (loss) | 48.4 | 25.1 | 151.8 | (13) |
Non-controlling interest (loss) income | (0.1) | (0.3) | 0.2 | (0.1) |
Net income (loss) attributable to Rexnord | 48.5 | 25.4 | 151.6 | (12.9) |
Dividends on preferred stock | (2.8) | (5.8) | (14.4) | (17.4) |
Net income (loss) attributable to Rexnord common stockholders | 45.7 | 19.6 | 137.2 | (30.3) |
Additional Information | ||||
Depreciation and amortization | 21.6 | 21.9 | 64.3 | 66 |
Capital expenditures | 12.3 | 8 | 25.5 | 24.1 |
Process & Motion Control | ||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Net sales | 327.5 | 326.7 | 994.6 | 1,007.8 |
Additional Information | ||||
Capital expenditures | 9.6 | 6.8 | 20 | 20.1 |
Water Management | ||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Net sales | 164.2 | 158.3 | 526.7 | 505.6 |
Additional Information | ||||
Capital expenditures | 2.7 | 1.2 | 5.5 | 4 |
Operating Segments | Process & Motion Control | ||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Income from operations | 53.6 | 53.4 | 167 | 159.7 |
Additional Information | ||||
Depreciation and amortization | 14.9 | 15.7 | 44.5 | 47.4 |
Operating Segments | Water Management | ||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Income from operations | 37.6 | 33.1 | 121.3 | 110.9 |
Additional Information | ||||
Depreciation and amortization | 6.6 | 6.2 | 19.5 | 18.6 |
Corporate | ||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Income from operations | (13.6) | (15.6) | (42) | (46.2) |
Additional Information | ||||
Depreciation and amortization | $ 0.1 | $ 0 | $ 0.3 | $ 0 |
Guarantor Subsidiaries - Conden
Guarantor Subsidiaries - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||||||||
Cash and cash equivalents | $ 277 | $ 292.5 | ||||||
Receivables, net | 283.1 | 334.3 | ||||||
Inventories | 349.3 | 316.5 | ||||||
Income tax receivable | 11.2 | 3.3 | ||||||
Other current assets | 48 | 36.3 | ||||||
Total current assets | 968.6 | 982.9 | ||||||
Property, plant and equipment, net | 372.8 | 383 | ||||||
Intangible assets, net | 492.5 | 511.5 | ||||||
Goodwill | 1,311.4 | 1,299.7 | ||||||
Investment in: | ||||||||
Other assets | 116.3 | 82.6 | ||||||
Total assets | 3,261.6 | 3,259.7 | ||||||
Current liabilities: | ||||||||
Current maturities of debt | 1.4 | 1.2 | ||||||
Trade payables | 178.4 | 191.7 | ||||||
Compensation and benefits | 47.4 | 63.7 | ||||||
Current portion of pension and postretirement benefit obligations | 3.3 | 3.3 | ||||||
Other current liabilities | 116.8 | 137.1 | ||||||
Total current liabilities | 347.3 | 397 | ||||||
Long-term debt | 1,147.2 | 1,236.8 | ||||||
Pension and postretirement benefit obligations | 150.5 | 158 | ||||||
Deferred income taxes | 130.2 | 125.9 | ||||||
Other liabilities | 118.2 | 111 | ||||||
Total liabilities | 1,893.4 | 2,028.7 | ||||||
Note payable to affiliates, net | 0 | 0 | ||||||
Total stockholders' equity | 1,368.2 | $ 1,321.4 | $ 1,277.9 | 1,231 | $ 1,180.1 | $ 1,144.3 | $ 1,181 | $ 1,212.8 |
Total liabilities and stockholders' equity | 3,261.6 | 3,259.7 | ||||||
Eliminations | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Receivables, net | 0 | 0 | ||||||
Inventories | 0 | 0 | ||||||
Income tax receivable | 0 | 0 | ||||||
Other current assets | 0 | 0 | ||||||
Total current assets | 0 | 0 | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | ||||||
Goodwill | 0 | 0 | ||||||
Investment in: | ||||||||
Total assets | (5,218.1) | (4,905.5) | ||||||
Current liabilities: | ||||||||
Current maturities of debt | 0 | 0 | ||||||
Trade payables | 0 | 0 | ||||||
Compensation and benefits | 0 | 0 | ||||||
Current portion of pension and postretirement benefit obligations | 0 | 0 | ||||||
Other current liabilities | 0 | 0 | ||||||
Total current liabilities | 0 | 0 | ||||||
Long-term debt | 0 | 0 | ||||||
Pension and postretirement benefit obligations | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other liabilities | 0 | 0 | ||||||
Total liabilities | 0 | 0 | ||||||
Note payable to affiliates, net | 0 | 0 | ||||||
Total stockholders' equity | (5,218.1) | (4,905.5) | ||||||
Total liabilities and stockholders' equity | (5,218.1) | (4,905.5) | ||||||
Eliminations, Issuer Subsidiaries | ||||||||
Investment in: | ||||||||
Subsidiaries | (1,373.8) | (1,212.1) | ||||||
Eliminations, Guarantor Subsidiaries | ||||||||
Investment in: | ||||||||
Subsidiaries | (3,305.2) | (3,146) | ||||||
Eliminations, Non-Guarantor Subsidiaries | ||||||||
Investment in: | ||||||||
Subsidiaries | (539.1) | (547.4) | ||||||
Parent | Reportable Legal Entities | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 1.4 | ||||||
Receivables, net | 0 | 0 | ||||||
Inventories | 0 | 0 | ||||||
Income tax receivable | 0 | 0 | ||||||
Other current assets | 0 | 0 | ||||||
Total current assets | 0 | 1.4 | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | ||||||
Goodwill | 0 | 0 | ||||||
Investment in: | ||||||||
Subsidiaries | 1,373.8 | 1,212.1 | ||||||
Other assets | 0 | 0 | ||||||
Total assets | 1,373.8 | 1,213.5 | ||||||
Current liabilities: | ||||||||
Current maturities of debt | 0 | 0 | ||||||
Trade payables | 0 | 0 | ||||||
Compensation and benefits | 0 | 0 | ||||||
Current portion of pension and postretirement benefit obligations | 0 | 0 | ||||||
Other current liabilities | 0.3 | 3 | ||||||
Total current liabilities | 0.3 | 3 | ||||||
Long-term debt | 0 | 0 | ||||||
Pension and postretirement benefit obligations | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other liabilities | 0.3 | 0.2 | ||||||
Total liabilities | 0.6 | 3.2 | ||||||
Note payable to affiliates, net | 5 | |||||||
Note receivable from affiliates, net | (20.7) | |||||||
Total stockholders' equity | 1,368.2 | 1,231 | ||||||
Total liabilities and stockholders' equity | 1,373.8 | 1,213.5 | ||||||
Issuers | Reportable Legal Entities | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 0 | 0.2 | ||||||
Receivables, net | 0 | 0 | ||||||
Inventories | 0 | 0 | ||||||
Income tax receivable | 0 | 0 | ||||||
Other current assets | 0 | 0 | ||||||
Total current assets | 0 | 0.2 | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | ||||||
Goodwill | 0 | 0 | ||||||
Investment in: | ||||||||
Subsidiaries | 3,305.2 | 3,146 | ||||||
Other assets | 0.9 | 1.1 | ||||||
Total assets | 3,306.1 | 3,147.3 | ||||||
Current liabilities: | ||||||||
Current maturities of debt | 0 | 0 | ||||||
Trade payables | 0 | 0 | ||||||
Compensation and benefits | 0 | 0 | ||||||
Current portion of pension and postretirement benefit obligations | 0 | 0 | ||||||
Other current liabilities | 1.9 | 7.5 | ||||||
Total current liabilities | 1.9 | 7.5 | ||||||
Long-term debt | 1,116.2 | 1,213.4 | ||||||
Pension and postretirement benefit obligations | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other liabilities | 0 | 0 | ||||||
Total liabilities | 1,118.1 | 1,220.9 | ||||||
Note payable to affiliates, net | 814.2 | 714.3 | ||||||
Total stockholders' equity | 1,373.8 | 1,212.1 | ||||||
Total liabilities and stockholders' equity | 3,306.1 | 3,147.3 | ||||||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 117.4 | 107.7 | ||||||
Receivables, net | 181 | 219.6 | ||||||
Inventories | 242.8 | 214.3 | ||||||
Income tax receivable | 9.6 | 0.5 | ||||||
Other current assets | 18 | 12.5 | ||||||
Total current assets | 568.8 | 554.6 | ||||||
Property, plant and equipment, net | 247.7 | 251.2 | ||||||
Intangible assets, net | 399 | 411.6 | ||||||
Goodwill | 1,029.8 | 1,017.1 | ||||||
Investment in: | ||||||||
Subsidiaries | 539.1 | 547.4 | ||||||
Other assets | 73.8 | 63.1 | ||||||
Total assets | 2,858.2 | 2,845 | ||||||
Current liabilities: | ||||||||
Current maturities of debt | 0.5 | 0.1 | ||||||
Trade payables | 120.4 | 129.7 | ||||||
Compensation and benefits | 28.5 | 42.4 | ||||||
Current portion of pension and postretirement benefit obligations | 1.9 | 1.9 | ||||||
Other current liabilities | 77.8 | 90.3 | ||||||
Total current liabilities | 229.1 | 264.4 | ||||||
Long-term debt | 26.9 | 14.4 | ||||||
Pension and postretirement benefit obligations | 106.9 | 112.9 | ||||||
Deferred income taxes | 106.3 | 98.8 | ||||||
Other liabilities | 76.6 | 87.4 | ||||||
Total liabilities | 545.8 | 577.9 | ||||||
Note receivable from affiliates, net | (992.8) | (879) | ||||||
Total stockholders' equity | 3,305.2 | 3,146.1 | ||||||
Total liabilities and stockholders' equity | 2,858.2 | 2,845 | ||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 159.6 | 183.2 | ||||||
Receivables, net | 102.1 | 114.7 | ||||||
Inventories | 106.5 | 102.2 | ||||||
Income tax receivable | 1.6 | 2.8 | ||||||
Other current assets | 30 | 23.8 | ||||||
Total current assets | 399.8 | 426.7 | ||||||
Property, plant and equipment, net | 125.1 | 131.8 | ||||||
Intangible assets, net | 93.5 | 99.9 | ||||||
Goodwill | 281.6 | 282.6 | ||||||
Investment in: | ||||||||
Other assets | 41.6 | 18.4 | ||||||
Total assets | 941.6 | 959.4 | ||||||
Current liabilities: | ||||||||
Current maturities of debt | 0.9 | 1.1 | ||||||
Trade payables | 58 | 62 | ||||||
Compensation and benefits | 18.9 | 21.3 | ||||||
Current portion of pension and postretirement benefit obligations | 1.4 | 1.4 | ||||||
Other current liabilities | 36.8 | 36.3 | ||||||
Total current liabilities | 116 | 122.1 | ||||||
Long-term debt | 4.1 | 9 | ||||||
Pension and postretirement benefit obligations | 43.6 | 45.1 | ||||||
Deferred income taxes | 23.9 | 27.1 | ||||||
Other liabilities | 41.3 | 23.4 | ||||||
Total liabilities | 228.9 | 226.7 | ||||||
Note payable to affiliates, net | 173.6 | 185.4 | ||||||
Total stockholders' equity | 539.1 | 547.3 | ||||||
Total liabilities and stockholders' equity | $ 941.6 | $ 959.4 |
Guarantor Subsidiaries - Cond_2
Guarantor Subsidiaries - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||||||||
Net sales | $ 491.7 | $ 485 | $ 1,521.3 | $ 1,513.4 | ||||
Cost of sales | 300 | 300.7 | 919.8 | 930.4 | ||||
Gross profit | 191.7 | 184.3 | 601.5 | 583 | ||||
Selling, general and administrative expenses | 101.7 | 102.4 | 320 | 323.8 | ||||
Restructuring and other similar charges | 3.6 | 2.6 | 8.9 | 9.4 | ||||
Amortization of intangible assets | 8.8 | 8.4 | 26.3 | 25.4 | ||||
Income from operations | 77.6 | 70.9 | 246.3 | 224.4 | ||||
Interest (expense) income, net: | ||||||||
To third parties | (14.4) | (16.8) | (45.2) | (54.1) | ||||
To affiliates | 0 | 0 | 0 | 0 | ||||
(Loss) gain on the extinguishment of debt | (2.2) | 5 | 1 | 5 | ||||
Other expense, net | 0.8 | 1.6 | (1) | 3.3 | ||||
Income before income taxes | 61.8 | 60.7 | 201.1 | 178.6 | ||||
Provision for income taxes | (13.4) | (9.1) | (47.7) | (40.8) | ||||
Equity method investment income | 0 | 1.3 | 0.2 | 3.5 | ||||
Income (loss) before equity in earnings of subsidiaries | 48.4 | 52.9 | 153.6 | 141.3 | ||||
Equity in income of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income from continuing operations | 48.4 | 52.9 | 153.6 | 141.3 | ||||
Loss from discontinued operations, net of tax | 0 | (27.8) | (1.8) | (154.3) | ||||
Net income (loss) | 48.4 | 25.1 | 151.8 | (13) | ||||
Non-controlling interest (loss) income | (0.1) | (0.3) | 0.2 | (0.1) | ||||
Net income (loss) attributable to Rexnord | 48.5 | 25.4 | 151.6 | (12.9) | ||||
Dividends on preferred stock | (2.8) | (5.8) | (14.4) | (17.4) | ||||
Net income (loss) attributable to Rexnord common stockholders | 45.7 | 19.6 | 137.2 | (30.3) | ||||
Comprehensive income | 55.7 | $ 41.6 | $ 46.7 | 34.5 | $ (36) | $ (34.5) | 144 | (36) |
Eliminations | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Net sales | (36.3) | (43.6) | (122.5) | (142) | ||||
Cost of sales | (36.3) | (43.6) | (122.5) | (142) | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||||
Restructuring and other similar charges | 0 | 0 | 0 | 0 | ||||
Amortization of intangible assets | 0 | 0 | 0 | 0 | ||||
Income from operations | 0 | 0 | 0 | 0 | ||||
Interest (expense) income, net: | ||||||||
To third parties | 0 | 0 | 0 | 0 | ||||
To affiliates | 0 | 0 | 0 | 0 | ||||
(Loss) gain on the extinguishment of debt | 0 | 0 | 0 | 0 | ||||
Other expense, net | 0 | 0 | 0 | 0 | ||||
Income before income taxes | 0 | 0 | 0 | 0 | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Equity method investment income | 0 | 0 | 0 | 0 | ||||
Income (loss) before equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | ||||
Equity in income of subsidiaries | (108.9) | (90.2) | (351) | 71.7 | ||||
Net income from continuing operations | (90.2) | (351) | 71.7 | |||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | |||||
Net income (loss) | (108.9) | (90.2) | (351) | 71.7 | ||||
Non-controlling interest (loss) income | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord | (108.9) | (90.2) | (351) | 71.7 | ||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord common stockholders | (108.9) | (90.2) | (351) | 71.7 | ||||
Comprehensive income | (108.9) | (90.2) | (351) | 71.7 | ||||
Parent | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of sales | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||||
Restructuring and other similar charges | 0 | 0 | 0 | 0 | ||||
Amortization of intangible assets | 0 | 0 | 0 | 0 | ||||
Income from operations | 0 | 0 | 0 | 0 | ||||
Interest (expense) income, net: | ||||||||
To third parties | 0 | 0 | 0 | 0 | ||||
To affiliates | 0.1 | 0.5 | 0.5 | 1.6 | ||||
(Loss) gain on the extinguishment of debt | 0 | 0 | 0 | 0 | ||||
Other expense, net | 0 | 0 | 0 | 0 | ||||
Income before income taxes | 0.1 | 0.5 | 0.5 | 1.6 | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Equity method investment income | 0 | 0 | 0 | 0 | ||||
Income (loss) before equity in earnings of subsidiaries | 0.1 | 0.5 | 0.5 | 1.6 | ||||
Equity in income of subsidiaries | 48.3 | 24.7 | 151.3 | (14.6) | ||||
Net income from continuing operations | 25.2 | 151.8 | (13) | |||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | |||||
Net income (loss) | 48.4 | 25.2 | 151.8 | (13) | ||||
Non-controlling interest (loss) income | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord | 48.4 | 25.2 | 151.8 | (13) | ||||
Dividends on preferred stock | (2.8) | (5.8) | (14.4) | (17.4) | ||||
Net income (loss) attributable to Rexnord common stockholders | 45.6 | 19.4 | 137.4 | (30.4) | ||||
Comprehensive income | 48.4 | 25.1 | 151.8 | (13) | ||||
Issuers | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Cost of sales | 0 | 0 | 0 | 0 | ||||
Gross profit | 0 | 0 | 0 | 0 | ||||
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | ||||
Restructuring and other similar charges | 0 | 0 | 0 | 0 | ||||
Amortization of intangible assets | 0 | 0 | 0 | 0 | ||||
Income from operations | 0 | 0 | 0 | 0 | ||||
Interest (expense) income, net: | ||||||||
To third parties | (13.8) | (16.2) | (44) | (52.8) | ||||
To affiliates | 8.1 | 9 | 25.2 | 28.6 | ||||
(Loss) gain on the extinguishment of debt | (2.1) | 0 | (2.1) | 0 | ||||
Other expense, net | (0.1) | 0.1 | 0 | 0.2 | ||||
Income before income taxes | (7.9) | (7.1) | (20.9) | (24) | ||||
Provision for income taxes | 0 | 0 | 0 | 0 | ||||
Equity method investment income | 0 | 0 | 0 | 0 | ||||
Income (loss) before equity in earnings of subsidiaries | (7.9) | (7.1) | (20.9) | (24) | ||||
Equity in income of subsidiaries | 56.2 | 31.8 | 172.2 | 9.4 | ||||
Net income from continuing operations | 24.7 | 151.3 | (14.6) | |||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | |||||
Net income (loss) | 48.3 | 24.7 | 151.3 | (14.6) | ||||
Non-controlling interest (loss) income | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord | 48.3 | 24.7 | 151.3 | (14.6) | ||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord common stockholders | 48.3 | 24.7 | 151.3 | (14.6) | ||||
Comprehensive income | 50.2 | 19.5 | 149.5 | (23.6) | ||||
Guarantor Subsidiaries | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Net sales | 368 | 371.8 | 1,155.9 | 1,157.8 | ||||
Cost of sales | 222.2 | 236.3 | 698.5 | 716.1 | ||||
Gross profit | 145.8 | 135.5 | 457.4 | 441.7 | ||||
Selling, general and administrative expenses | 76.3 | 76.5 | 242.4 | 244.6 | ||||
Restructuring and other similar charges | 3 | 2.1 | 5.7 | 6.3 | ||||
Amortization of intangible assets | 7 | 6.8 | 20.8 | 20.6 | ||||
Income from operations | 59.5 | 50.1 | 188.5 | 170.2 | ||||
Interest (expense) income, net: | ||||||||
To third parties | (0.8) | (0.8) | (2.1) | (1.6) | ||||
To affiliates | 2.4 | (7.2) | (11.3) | (21.4) | ||||
(Loss) gain on the extinguishment of debt | 0.1 | 5 | 3.3 | 5 | ||||
Other expense, net | 0.3 | 1.4 | (0.9) | 3.9 | ||||
Income before income taxes | 61.5 | 48.5 | 177.5 | 156.1 | ||||
Provision for income taxes | (9.7) | (9.4) | (32.8) | (35.4) | ||||
Equity method investment income | 0 | 0 | 0 | 0 | ||||
Income (loss) before equity in earnings of subsidiaries | 51.8 | 39.1 | 144.7 | 120.7 | ||||
Equity in income of subsidiaries | 4.4 | 33.7 | 27.5 | (66.5) | ||||
Net income from continuing operations | 72.8 | 172.2 | 54.2 | |||||
Loss from discontinued operations, net of tax | (41.1) | 0 | (44.8) | |||||
Net income (loss) | 56.2 | 31.7 | 172.2 | 9.4 | ||||
Non-controlling interest (loss) income | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord | 56.2 | 31.7 | 172.2 | 9.4 | ||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord common stockholders | 56.2 | 31.7 | 172.2 | 9.4 | ||||
Comprehensive income | 56.2 | 29 | 172.3 | 8.5 | ||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||||||
Condensed Income Statements, Captions [Line Items] | ||||||||
Net sales | 160 | 156.8 | 487.9 | 497.6 | ||||
Cost of sales | 114.1 | 108 | 343.8 | 356.3 | ||||
Gross profit | 45.9 | 48.8 | 144.1 | 141.3 | ||||
Selling, general and administrative expenses | 25.4 | 25.9 | 77.6 | 79.2 | ||||
Restructuring and other similar charges | 0.6 | 0.5 | 3.2 | 3.1 | ||||
Amortization of intangible assets | 1.8 | 1.6 | 5.5 | 4.8 | ||||
Income from operations | 18.1 | 20.8 | 57.8 | 54.2 | ||||
Interest (expense) income, net: | ||||||||
To third parties | 0.2 | 0.2 | 0.9 | 0.3 | ||||
To affiliates | (10.6) | (2.3) | (14.4) | (8.8) | ||||
(Loss) gain on the extinguishment of debt | (0.2) | 0 | (0.2) | 0 | ||||
Other expense, net | 0.6 | 0.1 | (0.1) | (0.8) | ||||
Income before income taxes | 8.1 | 18.8 | 44 | 44.9 | ||||
Provision for income taxes | (3.7) | 0.3 | (14.9) | (5.4) | ||||
Equity method investment income | 0 | 1.3 | 0.2 | 3.5 | ||||
Income (loss) before equity in earnings of subsidiaries | 4.4 | 20.4 | 29.3 | 43 | ||||
Equity in income of subsidiaries | 0 | 0 | 0 | 0 | ||||
Net income from continuing operations | 20.4 | 29.3 | 43 | |||||
Loss from discontinued operations, net of tax | 13.3 | (1.8) | (109.5) | |||||
Net income (loss) | 4.4 | 33.7 | 27.5 | (66.5) | ||||
Non-controlling interest (loss) income | (0.1) | (0.3) | 0.2 | (0.1) | ||||
Net income (loss) attributable to Rexnord | 4.5 | 34 | 27.3 | (66.4) | ||||
Dividends on preferred stock | 0 | 0 | 0 | 0 | ||||
Net income (loss) attributable to Rexnord common stockholders | 4.5 | 34 | 27.3 | (66.4) | ||||
Comprehensive income | $ 9.8 | $ 51.1 | $ 21.4 | $ (79.6) |
Guarantor Subsidiaries - Cond_3
Guarantor Subsidiaries - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating activities | ||
Cash provided by operating activities | $ 174.7 | $ 145.3 |
Investing activities | ||
Expenditures for property, plant and equipment | (25.5) | (26.5) |
Acquisitions, net of cash acquired | (25.1) | (2) |
Proceeds from dispositions of long-lived assets | 2.9 | 3.5 |
Cash dividend from equity method investment | 0 | 1.3 |
Net (payments) proceeds associated with divestiture of discontinued operations | (1.3) | 9 |
Cash used for investing activities | (49) | (14.7) |
Financing activities | ||
Proceeds from borrowings of debt | 725 | 249.8 |
Repayments of debt | (835.3) | (272.7) |
Proceeds from exercise of stock options | 16.8 | 6.6 |
Taxes withheld and paid on employees' share-based payment awards | (7.6) | (3.2) |
Repurchase of common stock | (20) | 0 |
Payments of preferred stock dividends | (17.4) | (17.4) |
Cash used for financing activities | (138.5) | (36.9) |
Effect of exchange rate changes on cash and cash equivalents | (2.7) | (14.2) |
(Decrease) increase in cash and cash equivalents | (15.5) | 79.5 |
Cash, cash equivalents and restricted cash at beginning of period | 292.5 | 217.6 |
Cash, cash equivalents and restricted cash at end of period | 277 | 297.1 |
Eliminations | ||
Operating activities | ||
Cash provided by operating activities | 0 | 0 |
Investing activities | ||
Expenditures for property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from dispositions of long-lived assets | 0 | 0 |
Cash dividend from equity method investment | 0 | |
Net (payments) proceeds associated with divestiture of discontinued operations | 0 | 0 |
Cash used for investing activities | 0 | 0 |
Financing activities | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 |
Repurchase of common stock | 0 | |
Payments of preferred stock dividends | 0 | 0 |
Cash used for financing activities | 0 | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
(Decrease) increase in cash and cash equivalents | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 |
Parent | Reportable Legal Entities | ||
Operating activities | ||
Cash provided by operating activities | 26.8 | 15.9 |
Investing activities | ||
Expenditures for property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from dispositions of long-lived assets | 0 | 0 |
Cash dividend from equity method investment | 0 | |
Net (payments) proceeds associated with divestiture of discontinued operations | 0 | 0 |
Cash used for investing activities | 0 | 0 |
Financing activities | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Proceeds from exercise of stock options | 16.8 | 6.6 |
Taxes withheld and paid on employees' share-based payment awards | (7.6) | (3.2) |
Repurchase of common stock | (20) | |
Payments of preferred stock dividends | (17.4) | (17.4) |
Cash used for financing activities | (28.2) | (14) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
(Decrease) increase in cash and cash equivalents | (1.4) | 1.9 |
Cash, cash equivalents and restricted cash at beginning of period | 1.4 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 1.9 |
Issuer | Reportable Legal Entities | ||
Operating activities | ||
Cash provided by operating activities | 100.5 | 19 |
Investing activities | ||
Expenditures for property, plant and equipment | 0 | 0 |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from dispositions of long-lived assets | 0 | 0 |
Cash dividend from equity method investment | 0 | |
Net (payments) proceeds associated with divestiture of discontinued operations | 0 | 0 |
Cash used for investing activities | 0 | 0 |
Financing activities | ||
Proceeds from borrowings of debt | 725 | 247 |
Repayments of debt | (825.7) | (265.8) |
Proceeds from exercise of stock options | 0 | 0 |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 |
Repurchase of common stock | 0 | |
Payments of preferred stock dividends | 0 | 0 |
Cash used for financing activities | (100.7) | (18.8) |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
(Decrease) increase in cash and cash equivalents | (0.2) | 0.2 |
Cash, cash equivalents and restricted cash at beginning of period | 0.2 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0.2 |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Operating activities | ||
Cash provided by operating activities | 52.2 | 103 |
Investing activities | ||
Expenditures for property, plant and equipment | (18.1) | (19.1) |
Acquisitions, net of cash acquired | (24.8) | (2) |
Proceeds from dispositions of long-lived assets | 1.6 | 3.5 |
Cash dividend from equity method investment | 0 | |
Net (payments) proceeds associated with divestiture of discontinued operations | 3 | |
Cash used for investing activities | (41.3) | (14.6) |
Financing activities | ||
Proceeds from borrowings of debt | 0 | 0 |
Repayments of debt | (1.2) | 0 |
Proceeds from exercise of stock options | 0 | 0 |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 |
Repurchase of common stock | 0 | |
Payments of preferred stock dividends | 0 | 0 |
Cash used for financing activities | (1.2) | 0 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
(Decrease) increase in cash and cash equivalents | 9.7 | 88.4 |
Cash, cash equivalents and restricted cash at beginning of period | 107.7 | 40.9 |
Cash, cash equivalents and restricted cash at end of period | 117.4 | 129.3 |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Operating activities | ||
Cash provided by operating activities | (4.8) | 7.4 |
Investing activities | ||
Expenditures for property, plant and equipment | (7.4) | (7.4) |
Acquisitions, net of cash acquired | (0.3) | 0 |
Proceeds from dispositions of long-lived assets | 1.3 | 0 |
Cash dividend from equity method investment | 1.3 | |
Net (payments) proceeds associated with divestiture of discontinued operations | (1.3) | 6 |
Cash used for investing activities | (7.7) | (0.1) |
Financing activities | ||
Proceeds from borrowings of debt | 0 | 2.8 |
Repayments of debt | (8.4) | (6.9) |
Proceeds from exercise of stock options | 0 | 0 |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 |
Repurchase of common stock | 0 | |
Payments of preferred stock dividends | 0 | 0 |
Cash used for financing activities | (8.4) | (4.1) |
Effect of exchange rate changes on cash and cash equivalents | (2.7) | (14.2) |
(Decrease) increase in cash and cash equivalents | (23.6) | (11) |
Cash, cash equivalents and restricted cash at beginning of period | 183.2 | 176.7 |
Cash, cash equivalents and restricted cash at end of period | $ 159.6 | $ 165.7 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 28, 2020 | Jan. 27, 2020 | Dec. 31, 2019 | Mar. 31, 2015 |
Common stock | ||||
Subsequent Event [Line Items] | ||||
Common stock repurchase program amount | $ 200,000,000 | |||
Remaining amount of repurchase authority | $ 140,000,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Quarterly dividend declared (in dollars per share) | $ 0.08 | |||
Subsequent Event | Common stock | ||||
Subsequent Event [Line Items] | ||||
Common stock repurchase program amount | $ 300,000,000 | |||
Subsequent Event | Just Manufacturing | ||||
Subsequent Event [Line Items] | ||||
Payments to acquire business | $ 60,000,000 |