Cover Page
Cover Page - USD ($) $ in Billions | 9 Months Ended | ||
Dec. 31, 2020 | Feb. 11, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-KT | ||
Document Period Start Date | Apr. 1, 2020 | ||
Document Annual Report | false | ||
Document Transition Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Registrant Name | REXNORD CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity File Number | 001-35475 | ||
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 | ||
Title of 12(b) Security | Common Stock $.01 par value | ||
Trading Symbol | RXN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.5 | ||
Entity Common Stock, Shares Outstanding | 119,592,769 | ||
Documents Incorporated by Reference | Part III of this Transition Report on Form 10-K incorporates by reference certain information from the Proxy Statement for the Registrant's annual meeting of stockholders, to be held on or about May 4, 2021, which Proxy Statement will be subsequently filed. | ||
Entity Central Index Key | 0001439288 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 255.6 | $ 573.4 |
Receivables, net | 274.8 | 334.7 |
Inventories | 330.1 | 317.5 |
Income tax receivable | 9.8 | 3.4 |
Other current assets | 37.4 | 35.3 |
Total current assets | 907.7 | 1,264.3 |
Property, plant and equipment, net | 434.8 | 378.8 |
Intangible assets, net | 524.6 | 514.2 |
Goodwill | 1,370.1 | 1,321.9 |
Other assets | 163.9 | 147.9 |
Total assets | 3,401.1 | 3,627.1 |
Current liabilities: | ||
Current maturities of debt | 2.4 | 76.4 |
Trade payables | 129.4 | 185.6 |
Compensation and benefits | 57 | 61.8 |
Current portion of pension and postretirement benefit obligations | 3.1 | 3.2 |
Other current liabilities | 125.6 | 128.5 |
Total current liabilities | 317.5 | 455.5 |
Long-term debt | 1,189.2 | 1,397 |
Pension and postretirement benefit obligations | 171.4 | 189.6 |
Deferred income taxes | 119.4 | 121 |
Other liabilities | 164.3 | 150.3 |
Total liabilities | 1,961.8 | 2,313.4 |
Stockholders' equity: | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued and outstanding: 119,549,735 at December 31, 2020 and 119,718,631 at March 31, 2020 | 1.2 | 1.2 |
Additional paid-in capital | 1,392.9 | 1,348.3 |
Retained earnings | 116 | 85.9 |
Accumulated other comprehensive loss | (73.8) | (124.4) |
Total Rexnord stockholders' equity | 1,436.3 | 1,311 |
Non-controlling interest | 3 | 2.7 |
Total stockholders' equity | 1,439.3 | 1,313.7 |
Total liabilities and stockholders' equity | $ 3,401.1 | $ 3,627.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Mar. 31, 2020 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 119,549,735 | 119,718,631 |
Common stock, shares outstanding (in shares) | 119,549,735 | 119,718,631 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 490.4 | $ 493.6 | $ 449.1 | $ 547 | $ 491.7 | $ 521.3 | $ 508.3 | $ 1,433.1 | $ 1,521.3 | $ 2,068.3 | $ 2,050.9 |
Cost of sales | 881.4 | 919.8 | 1,250.3 | 1,266.1 | |||||||
Gross profit | 181.7 | 193.1 | 176.9 | 216.5 | 191.7 | 208.2 | 201.6 | 551.7 | 601.5 | 818 | 784.8 |
Selling, general and administrative expenses | 321.7 | 320 | 432.8 | 433.1 | |||||||
Restructuring and other similar charges | 14.6 | 8.9 | 15.5 | 12.1 | |||||||
Amortization of intangible assets | 27 | 26.3 | 35.4 | 34 | |||||||
Income from operations | 188.4 | 246.3 | 334.3 | 305.6 | |||||||
Non-operating (expense) income: | |||||||||||
Interest expense, net | (36.6) | (45.2) | (58.6) | (69.9) | |||||||
Gain on the extinguishment of debt | 0 | 1 | 1 | 4.3 | |||||||
Actuarial (loss) gain on pension and postretirement benefit obligations | (35.8) | (1.6) | (0.8) | (36.6) | 0.4 | ||||||
Other income (expense), net | 4.5 | (0.2) | (3.8) | (1.6) | |||||||
Income from continuing operations before income taxes | 154.7 | 201.1 | 236.3 | 238.8 | |||||||
Provision for income taxes | (36.3) | (47.7) | (54.1) | (53.4) | |||||||
Equity method investment income | 0.2 | 0.2 | 0 | 3.6 | |||||||
Net income from continuing operations | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 48.5 | 118.6 | 153.6 | 182.2 | 189 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.8) | 0 | (1.8) | (1.8) | (154.7) | |||
Net income | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 46.7 | 118.6 | 151.8 | 180.4 | 34.3 |
Non-controlling interest income | 0.2 | 0 | 0.2 | 0.1 | (0.1) | 0.1 | 0.2 | 0.4 | 0.2 | 0.3 | 0 |
Net income attributable to Rexnord | 37.2 | 45.4 | 35.6 | 28.5 | 48.5 | 56.6 | 46.5 | 118.2 | 151.6 | 180.1 | 34.3 |
Dividends on preferred stock | 0 | 0 | 0 | 0 | (2.8) | (5.8) | (5.8) | 0 | (14.4) | (14.4) | (23.2) |
Net income attributable to Rexnord common stockholders | $ 37.2 | $ 45.4 | $ 35.6 | $ 28.5 | $ 45.7 | $ 50.8 | $ 40.7 | $ 118.2 | $ 137.2 | $ 165.7 | $ 11.1 |
Basic net income (loss) per share attributable to Rexnord common stockholders: | |||||||||||
Continuing operations (in dollars per share) | $ 0.31 | $ 0.38 | $ 0.30 | $ 0.23 | $ 0.40 | $ 0.48 | $ 0.40 | $ 0.98 | $ 1.28 | $ 1.50 | $ 1.58 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.02) | 0 | (0.02) | (0.02) | (1.48) | |||
Net income (in dollars per share) | 0.31 | 0.38 | 0.30 | 0.23 | 0.40 | 0.48 | 0.39 | 0.98 | 1.27 | 1.48 | 0.11 |
Diluted net income (loss) per share attributable to Rexnord common stockholders: | |||||||||||
Continuing operations (in dollars per share) | 0.30 | 0.37 | 0.29 | 0.23 | 0.39 | 0.46 | 0.39 | 0.96 | 1.24 | 1.46 | 1.53 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) | 0 | (0.01) | (0.01) | (1.25) | |||
Net income (in dollars per share) | $ 0.30 | $ 0.37 | $ 0.29 | $ 0.23 | $ 0.39 | $ 0.46 | $ 0.38 | $ 0.96 | $ 1.22 | $ 1.45 | $ 0.28 |
Weighted-average number of common shares outstanding (in thousands): | |||||||||||
Basic (in shares) | 120,428 | 108,250 | 111,689 | 104,640 | |||||||
Effect of dilutive equity options (in shares) | 2,771 | 15,560 | 12,574 | 18,689 | |||||||
Diluted (in shares) | 123,199 | 123,810 | 124,263 | 123,329 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income attributable to Rexnord | $ 118.2 | $ 180.1 | $ 34.3 |
Other comprehensive income (loss): | |||
Foreign currency translation and other adjustments | 37.8 | (24.5) | (13.4) |
Change in pension and other postretirement defined benefit plans, net of tax | 12.8 | (3.3) | (9.1) |
Other comprehensive income (loss), net of tax | 50.6 | (27.8) | (22.5) |
Non-controlling interest income | 0.4 | 0.3 | 0 |
Total comprehensive income | $ 169.2 | $ 152.6 | $ 11.8 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | [1] | Additional Paid-In Capital | Retained (Deficit) Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling interest | [2] | |
Beginning balance at Mar. 31, 2018 | $ 1,212.8 | $ 1 | $ 0 | $ 1,277.8 | $ 8 | $ (74.1) | $ 0.1 | |||
Comprehensive income (loss): | ||||||||||
Net income | 34.3 | 34.3 | ||||||||
Foreign currency translation and other adjustments | (17.9) | (17.9) | ||||||||
Change in unrealized loss on interest rate derivatives, net of $1.2 million income tax expense | 4.5 | 4.5 | ||||||||
Change in pension and other post retirement defined benefit plans, net of income tax expense | (9.1) | (9.1) | ||||||||
Total comprehensive income (loss) | 11.8 | 34.3 | (22.5) | 0 | ||||||
Acquisition of non-controlling interest | 2.3 | 2.3 | ||||||||
Stock-based compensation expense | 22.6 | 22.6 | ||||||||
Proceeds from exercise of stock options | 7.9 | 7.9 | ||||||||
Taxes withheld and paid on employees' share-based payment awards | (3.2) | (3.2) | ||||||||
Preferred stock dividends | (23.2) | (11.6) | (11.6) | |||||||
Ending balance at Mar. 31, 2019 | 1,231 | 1 | 0 | 1,293.5 | 30.7 | (96.6) | 2.4 | |||
Comprehensive income (loss): | ||||||||||
Net income | 180.4 | 180.1 | 0.3 | |||||||
Foreign currency translation and other adjustments | (24.5) | (24.5) | ||||||||
Change in pension and other post retirement defined benefit plans, net of income tax expense | (3.3) | (3.3) | ||||||||
Total comprehensive income (loss) | 152.6 | 180.1 | (27.8) | 0.3 | ||||||
Acquisition of non-controlling interest | (0.3) | (0.3) | ||||||||
Stock-based compensation expense | 26.9 | 26.9 | ||||||||
Proceeds from exercise of stock options | 36 | 36 | ||||||||
Taxes withheld and paid on employees' share-based payment awards | (7.6) | (7.6) | ||||||||
Mandatory conversion of preferred stock to common stock | [1] | 0 | 0.2 | (0.2) | ||||||
Repurchase of common stock | [3] | (100.7) | (100.7) | |||||||
Common stock dividends | (9.8) | (9.8) | ||||||||
Preferred stock dividends | (14.4) | (14.4) | ||||||||
Ending balance at Mar. 31, 2020 | 1,313.7 | 1.2 | 0 | 1,348.3 | 85.9 | (124.4) | 2.7 | |||
Comprehensive income (loss): | ||||||||||
Net income | 118.6 | 118.2 | 0.4 | |||||||
Foreign currency translation and other adjustments | 37.8 | 37.8 | ||||||||
Change in pension and other post retirement defined benefit plans, net of income tax expense | 12.8 | 12.8 | ||||||||
Total comprehensive income (loss) | 169.2 | 118.2 | 50.6 | 0.4 | ||||||
Acquisition of non-controlling interest | (0.3) | (0.2) | (0.1) | |||||||
Stock-based compensation expense | 35.9 | 35.9 | ||||||||
Proceeds from exercise of stock options | 18.3 | 18.3 | ||||||||
Taxes withheld and paid on employees' share-based payment awards | (9.4) | (9.4) | ||||||||
Repurchase of common stock | [3] | (59.3) | (59.3) | |||||||
Common stock dividends | (28.8) | (28.8) | ||||||||
Ending balance at Dec. 31, 2020 | $ 1,439.3 | $ 1.2 | $ 0 | $ 1,392.9 | $ 116 | $ (73.8) | $ 3 | |||
[1] | On December 7, 2016, the Company issued 8.1 million depository shares, each of which represented a 1/20th interest in a share of 5.75% Series A Mandatory Convertible Preferred Stock (the "Series A Preferred Stock"), for an offering price of $50 per depository share. Shares of Series A Preferred Stock had a par value of $0.01 per share. During fiscal 2020, the Company issued 16.0 million shares of common stock upon the mandatory conversion of the Series A Preferred Stock; see Note 19 Common Stock Purchases and Public Offerings for additional information. | |||||||||
[2] | During fiscal 2018, represents a 30% non-controlling interest in two Process & Motion Control controlled subsidiaries. During fiscal 2019, represents a 30% non-controlling interest in two Process & Motion Control controlled subsidiaries and a 5% non-controlling interest in another Process & Motion Control joint venture relationship. During fiscal 2020, represents a 30% non-controlling interest in a Process & Motion Control controlled subsidiary and a 5% non-controlling interest in another Process & Motion Control joint venture relationship. During the Transition Period, the Company acquired the remaining 30% non-controlling interest associated with the aforementioned Process & Motion Control joint ventures for a cash purchase price of $0.3 million. As a result of this transaction, the Transition Period represents a 5% non-controlling interest in the remaining Process & Motion Control joint venture relationship. Refer to Note 3, Acquisitions and Divestiture for further detail. | |||||||||
[3] | During the nine months ended December 31, 2020 and fiscal year ended March 31, 2020, the Company repurchased and canceled 1.7 million shares and 3.6 million shares of common stock at a total cost of $59.3 million and $100.7 million at a weighted average price of $34.97 and $27.94 per share, respectively. See Note 19 Common Stock Purchases and Public Offerings for additional information |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Millions | Dec. 07, 2016$ / sharesRateshares | Dec. 31, 2020USD ($)$ / sharesRateshares | Mar. 31, 2020USD ($)$ / sharesRateshares | Mar. 31, 2019USD ($)$ / sharesRate | Mar. 31, 2018subsidiaryRate |
Change in unrealized loss on interest rate derivatives, income tax | $ | $ 1.2 | ||||
Change in pension and other postretirement defined benefit plans, income tax expense | $ | $ 3.6 | $ 1.5 | $ 2.8 | ||
Common stock dividends (in dollars per share) | $ / shares | $ 0.24 | $ 0.08 | |||
Preferred stock dividend (in dollars per share) | $ / shares | $ 35.78 | $ 57.50 | |||
Number of subsidiaries | subsidiary | 2 | ||||
Cash paid, net of cash acquired | $ | $ 102 | $ 84.5 | $ 23.4 | ||
Repurchased and canceled shares (in shares) | shares | 1,700,000 | 3,600,000 | |||
Cost of repurchased and canceled shares | $ | $ 59.3 | $ 100.7 | |||
Weighted average price of repurchased and canceled shares (in dollars per share) | $ / shares | $ 34.97 | $ 27.94 | |||
Process & Motion Control | |||||
Cash paid, net of cash acquired | $ | $ 0.3 | ||||
Process & Motion Control | Centa China | |||||
Non-controlling interest percentage | Rate | 30.00% | 30.00% | 30.00% | ||
Interest acquired | Rate | 30.00% | ||||
Depositary Shares | |||||
Shares issued (in shares) | shares | 8,100,000 | ||||
Preferred stock, conversion ratio | 0.05 | ||||
Redeemable Convertible Preferred Stock | |||||
Shares issued (in shares) | shares | 402,500 | 0 | |||
Stated rate | Rate | 5.75% | ||||
Offering price (in dollars per share) | $ / shares | $ 50 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 | ||||
Converted shares issued (in shares) | shares | 16,000,000 | ||||
Centa China | Process & Motion Control | Centa China | |||||
Non-controlling interest percentage | Rate | 5.00% | 5.00% | 5.00% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | |||
Net income | $ 118.6 | $ 180.4 | $ 34.3 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation | 40 | 51.2 | 58 |
Amortization of intangible assets | 27 | 35.4 | 34.3 |
Non-cash discontinued operations asset impairment | 0 | 0 | 126 |
Non-cash loss on sale of discontinued operations | 0 | 0 | 22.5 |
(Gain) loss on dispositions of assets | (1.1) | (0.7) | 0.5 |
Deferred income taxes | (7) | (2.8) | (27.5) |
Actuarial loss (gain) on pension and postretirement benefit obligations | 1.6 | 36.6 | (0.4) |
Other non-cash charges | (0.2) | 3.7 | 7.9 |
Gain on extinguishment of debt | 0 | (1) | (4.3) |
Stock-based compensation expense | 36.6 | 26.9 | 22.6 |
Changes in operating assets and liabilities: | |||
Receivables | 65.1 | (19.9) | (29.8) |
Inventories | 0.5 | 0.1 | (24.7) |
Other assets | 2.4 | 3.2 | 4.1 |
Accounts payable | (65.1) | (3.7) | (1.3) |
Accruals and other | (22.1) | (10.8) | 35.9 |
Cash provided by operating activities | 196.3 | 298.6 | 258.1 |
Investing activities | |||
Expenditures for property, plant and equipment | (28.3) | (41.4) | (44.9) |
Acquisitions, net of cash acquired | (102) | (84.5) | (23.4) |
Proceeds from dispositions of long-lived assets | 7.8 | 4.1 | 4.7 |
Cash dividend from equity method investment | 0 | 0 | 1.3 |
Net (payment) proceeds from divestiture of discontinued operations | 0 | (1.3) | 9 |
Cash used for investing activities | (122.5) | (123.1) | (53.3) |
Financing activities | |||
Proceeds from borrowings of debt | 6 | 1,050 | 270.8 |
Repayments of debt | (336.4) | (835.6) | (369) |
Repurchase of common stock | (59.3) | (100.7) | 0 |
Payment of common stock dividends | (28.8) | (9.8) | 0 |
Payment of preferred stock dividends | 0 | (17.4) | (23.2) |
Proceeds from exercise of stock options | 18.3 | 36 | 7.9 |
Taxes withheld and paid on employees' share-based payment awards | (9.4) | (7.6) | (3.2) |
Cash (used for) provided by financing activities | (409.6) | 114.9 | (116.7) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18 | (9.5) | (13.2) |
(Decrease) increase in cash, cash equivalents and restricted cash | (317.8) | 280.9 | 74.9 |
Cash, cash equivalents and restricted cash at beginning of period | 573.4 | 292.5 | 217.6 |
Cash, cash equivalents and restricted cash at end of period | $ 255.6 | $ 573.4 | $ 292.5 |
Basis of Presentation and Descr
Basis of Presentation and Description of Business | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Description of Business | Basis of Presentation and Description of Business The consolidated financial statements included herein have been prepared by Rexnord Corporation ("Rexnord" or the "Company"), in accordance with accounting principles generally accepted in the United States ("GAAP") pursuant to the rules and regulations of the Securities and Exchange Commission. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the consolidated financial statements include all adjustments necessary for a fair presentation of the financial position and the results of operations for the periods presented. Following the end of the Company's fiscal year ended March 31, 2020, the Company transitioned to a December 31 fiscal year-end date. As a result, this Form 10-K is a transition report and includes financial information for the nine-month period from April 1, 2020 to December 31, 2020 (the "Transition Period"). Prior to the Transition Period, the Company’s fiscal year ended on March 31 of each year. For example, fiscal 2020 represents the period from April 1, 2019, to March 31, 2020. See Note 12, Comparative Nine Month Financial Information for additional information. The Company Rexnord is a growth-oriented, multi-platform industrial company with what it believes to be leading market shares and highly-trusted brands that serve a diverse array of global end markets. The Company's heritage of innovation and specification have allowed it to provide highly-engineered, mission-critical solutions to customers for decades and affords the privilege of having long-term, valued relationships with market leaders. The Company operates in a disciplined way and its Rexnord Business System ("RBS") is the operating philosophy. Grounded in the spirit of continuous improvement, RBS creates a scalable, process-based framework that focuses on driving superior customer satisfaction and financial results by targeting world-class operating performance throughout all aspects of its business. The Company currently operates its business in two platforms — Process & Motion Control and Water Management. The Process & Motion Control platform designs, manufactures, markets and services a comprehensive range of specified, highly engineered mechanical components used within complex systems where our customers' reliability requirements and costs of failure or downtime are high. The Process & Motion Control portfolio includes motion control products, shaft management products, aerospace components and related value-added services. The Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product portfolio includes professional grade water control and safety, water distribution and drainage, finish plumbing and site works products for primarily nonresidential buildings and flow control products for water and wastewater treatment infrastructure markets. During the fiscal year ended March 31 2019, the Company sold the net assets of the VAG business included within the Water Management platform. As a result, in accordance with the authoritative guidance, the operating results of the VAG business are reported as discontinued operations in the consolidated statements of operations for all periods presented. See Note 4, Discontinued Operations for additional information. |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications Certain prior year amounts have been reclassified to conform to presentation used for the Transition Period. Revenue Recognition See Note 6, Revenue Recognition for the Company's policy for recognizing revenue under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606") as well as the various other disclosures required by ASC 606. Leases The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement and determines whether it is an operating or financing lease. Operating and financing leases result in the Company recording a right-of-use ("ROU") asset, current lease liability, and long term lease liability on its balance sheet. 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 consolidated balance sheet and are instead recognized on a straight-line basis over the lease term. See Note 14, Leases, for additional discussion about the Company policy for the Company's policy for accounting leases and other required disclosures. Stock-Based Compensation The Company accounts for stock based compensation in accordance with ASC 718, Accounting for Stock Compensation ("ASC 718"). ASC 718 requires compensation costs related to stock-based payment transactions to be recognized in the financial statements. Generally, compensation cost is measured based on the grant-date fair value of the equity instruments issued. Compensation cost is recognized over the requisite service period, generally as the awards vest. See further discussion of the Company’s equity plans in Note 15, Stock-Based Compensation. Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. Receivables Receivables are stated net of allowances for doubtful accounts of $3.4 million at December 31, 2020, and $3.4 million at March 31, 2020. The Company assesses the collectability of customer receivables based on the credit worthiness of a customer as determined by credit checks and analysis, as well as the customer’s payment history. In determining the allowance for doubtful accounts, the Company also considers various factors including the aging of customer accounts and historical write-offs. In addition, the Company monitors other risk factors, including forward-looking information when establishing adequate allowances for doubtful accounts, which reflects the current estimate of credit losses expected to be incurred over the life of the receivables. Generally, advance payment is not required. Allowances for doubtful accounts established are recorded within Selling, general and administrative expenses within the consolidated statements of operations. Significant Customers The Company’s largest customer accounted for less than 10% of consolidated net sales for the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, respectively. Inventories Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at the lower of cost or market. Market is determined based on estimated net realizable values. The Company’s total inventories valued using the "last-in, first-out" (LIFO) method was 59% and 61% at December 31, 2020 and March 31, 2020, respectively. All remaining inventories are valued using the "first-in, first-out" (FIFO) method. In some cases, the Company has determined a certain portion of inventories are excess or obsolete. In those cases, the Company writes down the value of those inventories to their net realizable value based upon assumptions about future demand and market conditions. If actual market conditions are less favorable than those projected by management, adjustments to established inventory reserves may be required. The total write-down of inventories charged to expense was $5.9 million, $4.6 million and $3.1 million, during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, respectively. Property, Plant and Equipment Property, plant and equipment are initially stated at cost. Depreciation is provided using the straight-line method over 10 to 30 years for buildings and improvements, 5 to 10 years for machinery and equipment and 3 to 5 years for computer hardware and software. Where appropriate, the depreciable lives of certain assets may be adjusted to reflect a change in the use of those assets, or depreciation may be accelerated in the case of an eventual asset disposal. The Company recognized accelerated depreciation of $0.8 million, $2.5 million, and $3.9 million during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019, respectively. Accelerated depreciation is recorded within Cost of sales in the consolidated statements of operations. Maintenance and repair costs are expensed as incurred. Goodwill and Intangible Assets Intangible assets consist of acquired trademarks and tradenames, customer relationships (including distribution network) and patents. The customer relationships, patents, and certain tradenames are being amortized using the straight-line method over their estimated useful lives of 7 to 20 years, 3 to 14 years and 4 to 15 years, respectively. Where appropriate, the lives of certain intangible assets may be adjusted to reflect a change in the use of those assets, or amortization may be accelerated in the case of a known intangible asset discontinuation. Goodwill, trademarks and certain tradenames have indefinite lives and are not amortized. However, the goodwill and intangible assets are tested annually for impairment, and may be tested more frequently if any triggering events occur that would reduce the recoverability of the asset. The Company performs its impairment test by comparing the fair value of a reporting unit, utilizing both an income valuation model (discounted cash flow) and market approach (guideline public company comparables), with its carrying amount. If the carrying amount exceeds the fair value of the reporting unit, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. Impairment of Long-Lived Assets The carrying value of long-lived assets, including amortizable intangible assets and tangible fixed assets, are evaluated for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment of amortizable intangible assets and tangible fixed assets is generally determined by comparing projected undiscounted cash flows to be generated by the asset, or group of assets, to its carrying value. If impairment is identified, a loss is recorded equal to the excess of the asset's net book value over its fair value, and the cost basis is adjusted accordingly. The Company recognized impairment charges of tangible fixed assets of $1.9 million, $0.0 million and $0.3 million during the during the nine months ended December 31, 2020 and the years ended March 31, 2020 and March 31, 2019, respectively. The impairments were determined utilizing Level 3 inputs within the Fair Value hierarchy, and the Company reviewed and considered input from outside specialists, when appropriate. Actual results could vary from these estimates. Refer to Note 13, Fair Value Measurements for additional information. Product Warranty The Company offers warranties on the sales of certain of its products and records an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimate of the level of future claims. The following table presents changes in the Company’s product warranty liability during each of the periods presented (in millions): Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 Balance at beginning of period $ 6.7 $ 7.2 $ 7.7 Charged to operations 3.6 1.7 1.9 Claims settled (1.4) (2.2) (2.4) Balance at end of period $ 8.9 $ 6.7 $ 7.2 Income Taxes The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes (“ASC 740”) . Deferred income taxes are provided for future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses, tax credits and other applicable carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be actually paid or recovered. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of continuing operations in the period that includes the date of enactment. The Company regularly reviews its deferred tax assets for recoverability and provides a valuation allowance against its deferred tax assets if, based upon consideration of all positive and negative evidence, the Company determines that it is more-likely-than-not that a portion or all of the deferred tax assets will ultimately not be realized in future tax periods. Such positive and negative evidence would include review of historical earnings and losses, anticipated future earnings, the time period over which the temporary differences and carryforwards are anticipated to reverse and implementation of feasible, prudent tax planning strategies. The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining the Company’s worldwide provision for income taxes and recording the related deferred tax assets and liabilities. In the ordinary course of the Company’s business, there is inherent uncertainty in quantifying the ultimate tax outcome of all of the numerous transactions and required calculations relating to the Company’s tax positions. Accruals for unrecognized tax benefits are provided for in accordance with the requirements of ASC 740 . An unrecognized tax benefit represents the difference between the recognition of benefits related to uncertain tax positions for income tax reporting purposes and financial reporting purposes. The Company has established a reserve for interest and penalties, as applicable, for uncertain tax positions and it is recorded as a component of the overall income tax provision. The Company is subject to periodic income tax examinations by domestic and foreign income tax authorities. Although the outcome of income tax examinations is always uncertain, the Company believes that it has appropriate support for the positions taken on its income tax returns and has adequately provided for potential income tax assessments. Nonetheless, the amounts ultimately settled relating to issues raised by the taxing authorities may differ materially from the amounts accrued for each year. See Note 17, Income Taxes for additional information. Per Share Data Basic net income per share from continuing and discontinued operations attributable to Rexnord common stockholders is computed by dividing net income from continuing operations and loss from discontinued operations attributable to Rexnord common stockholders, respectively, by the corresponding weighted average number of common shares outstanding for the period. Diluted net income (loss) per share from continuing and discontinued operations attributable to Rexnord common stockholders is computed based on the weighted average number of common shares outstanding, increased by the number of incremental shares that would have been outstanding if the potential dilutive shares were issued through the exercise of outstanding stock options to purchase common shares, except when the effect would be anti-dilutive. Additionally, following the issuance of the Series A Preferred Stock during the year ended March 31, 2017, the Company’s diluted net income per share was computed using the "if-converted" method. During the year ended March 31, 2020, the Company issued 16.0 million shares of common stock upon the mandatory conversion of the Series A Preferred Stock. The "if-converted" method is utilized only when such calculation is dilutive to earnings per share using the treasury stock method. Under the "if-converted" method, diluted net income per share is calculated under the assumption that the shares of Series A Preferred Stock were converted into shares of the Company’s common stock as of the beginning of the respective period, and therefore no dividends were provided to holders of the Series A Preferred Stock. The computation for diluted net income per share for the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 excludes 0.5 million, 0.9 million and 1.0 million common shares due to their anti-dilutive effects, respectively. The following table presents the basis for income per share computations (in millions, except share amounts, which are in thousands): Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Basic net income per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 118.6 $ 182.2 $ 189.0 Less: Non-controlling interest income 0.4 0.3 — Less: Dividends on preferred stock — 14.4 23.2 Net income from continuing operations attributable to Rexnord common stockholders $ 118.2 $ 167.5 $ 165.8 Loss from discontinued operations, net of tax $ — $ (1.8) $ (154.7) Net income attributable to Rexnord common stockholders $ 118.2 $ 165.7 $ 11.1 Denominator: Weighted-average common shares outstanding, basic 120,428 111,689 104,640 Diluted net income per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 118.6 $ 182.2 $ 189.0 Less: Non-controlling interest income 0.4 0.3 — Less: Dividends on preferred stock (1) — — — Net income from continuing operations attributable to Rexnord common stockholders $ 118.2 $ 181.9 $ 189.0 Loss from discontinued operations, net of tax $ — $ (1.8) $ (154.7) Net income attributable to Rexnord common stockholders 118.2 165.7 11.1 Plus: Dividends on preferred stock (1) — 14.4 23.2 Net income attributable to Rexnord common stockholders $ 118.2 $ 180.1 $ 34.3 Denominator: Weighted-average common shares outstanding, basic 120,428 111,689 104,640 Effect of dilutive equity awards 2,771 2,576 2,710 Preferred stock under the "if-converted" method (2) — 9,998 15,979 Weighted-average common shares outstanding, diluted 123,199 124,263 123,329 ____________________ (1) The "if-converted" method was dilutive for the years ended March 31, 2020 and 2019. (2) During the year ended March 31, 2020, the Company issued 16.0 million shares of common stock upon the mandatory conversion of Series A Preferred Stock; see Note 19, Common Stock Purchases and Public Offerings for additional information. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, for the nine months ending December 31, 2020 and years ending March 31, 2020 and 2019 are as follows (in millions): Foreign Currency Translation and Other Pension and Postretirement Plans Total Balance at March 31, 2018 $ (45.9) $ (28.2) $ (74.1) Other comprehensive loss before reclassifications (39.4) (8.5) (47.9) Amounts reclassified from accumulated other comprehensive income (loss) 26.0 (0.6) 25.4 Net current period other comprehensive loss (13.4) (9.1) (22.5) Balance at March 31, 2019 (59.3) (37.3) (96.6) Other comprehensive loss before reclassifications (24.5) (3.6) (28.1) Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Net current period other comprehensive loss (24.5) (3.3) (27.8) Balance at March 31, 2020 (83.8) (40.6) (124.4) Other comprehensive income before reclassifications 37.8 13.0 50.8 Amounts reclassified from accumulated other comprehensive loss — (0.2) (0.2) Net current period other comprehensive income 37.8 12.8 50.6 Balance at December 31, 2020 $ (46.0) $ (27.8) $ (73.8) The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the nine months ending December 31, 2020 and years ending March 31, 2020 and 2019 (in millions): Pension and postretirement plans Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 Income Statement Line Item Amortization of prior service credit $ (0.2) $ (0.3) $ (1.5) Other income (expense), net Lump sum settlement — 0.8 0.6 Actuarial (loss) gain on pension and postretirement benefit obligations Provision for income taxes — (0.2) 0.3 Total, net of income taxes $ (0.2) $ 0.3 $ (0.6) Foreign Currency Translation and Other Reclassification on sale of business $ — $ — $ 19.7 Loss from discontinued operations, net of tax Net realized losses on interest rate derivatives — — 5.7 Interest expense, net Reclassification on acquisition of equity method investment — — 1.8 Other (expense) income, net Benefit for income taxes — — (1.2) Total $ — $ — $ 26.0 Foreign Currency Translation Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. dollar are translated into U.S. dollars using exchange rates at the end of the respective period. Revenues and expenses of such entities are translated at average exchange rates in effect during the respective period. Foreign currency translation adjustments are included as a component of accumulated other comprehensive loss. The Company periodically enters into foreign currency forward contracts to mitigate foreign currency volatility on certain intercompany and external cash flows expected to occur. Currency transaction (gains) losses are included in other expense (income), net in the consolidated statements of operations and totaled $(5.3) million, $3.9 million and $1.9 million for the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019, respectively. Advertising Costs Advertising costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred and amounted to $8.0 million, $13.3 million and $11.9 million for the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019, respectively. Research, Development and Engineering Costs Research, development and engineering costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred and amounted to $27.5 million, $40.5 million and $41.7 million for the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, respectively. Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and temporary investments, forward currency contracts and trade accounts receivable. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The Company did not modify any material contracts due to reference rate reform during the nine months ended December 31, 2020. The Company will continue to evaluate the impact this guidance will have on its consolidated financial statements for all future transactions affected by reference rate reform during the time permitted. In December 2019, the FASB issued 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. The Company will adopt this ASU on January 1, 2021 using a retrospective, modified retrospective or prospective basis for certain amendments, and does not expect there to be a material impact to the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes 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. The Company adopted this ASU on April 1, 2020 using a modified-retrospective approach. There was no impact to the Company's 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 |
Acquisitions and Divestiture
Acquisitions and Divestiture | 9 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestiture | Acquisitions and Divestiture Nine Months Ended December 31, 2020 On December 11, 2020, the Company acquired substantially all of the assets of Hadrian Manufacturing Inc. and 100% of the stock of Hadrian Inc. (collectively "Hadrian") for a total preliminary cash purchase price of $101.7 million, excluding transaction costs and net of cash acquired. The preliminary purchase price is subject to customary post-closing adjustments. Hadrian, based in Burlington, Ontario, Canada, manufactures washroom partitions and lockers primarily used in institutional and commercial end markets and complements the Company's existing Water Management platform. The acquisition has been accounted for as a business combination and was recorded by allocating the preliminary 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 preliminary purchase price allocations associated with the acquisition resulted in goodwill of $42.8 million ($36.7 million tax deductible), other intangible assets of $32.4 million (including tradenames of $0.8 million and $31.6 million of customer relationships), $17.1 million of fixed assets, $10.0 million of trade working capital and other net liabilities of $0.6 million. The Company is continuing to evaluate the preliminary purchase price allocations for Hadrian related to the fair values assigned to intangible assets, fixed assets and net working capital acquired, which will be completed within the one year period following its acquisition date. On October 1, 2020, the Company completed the sale of its gearbox product line in China within its Process & Motion Control platform for aggregate cash consideration of $5.8 million. The gearbox product line was not material to the Company's consolidated statements of operations or financial position and did not meet the criteria to be presented as discontinued operations. In completing the sale, the Company sold inventory, fixed assets and other intellectual property associated with the business with a carrying value of $5.0 million. In addition, the Company allocated $1.8 million of goodwill from the Process & Motion Control platform that was included in the calculation of the gain on sale of the business. The Company recognized a gain of $0.8 million within other income (expense), net in the consolidated statements of operations during the nine months ended December 31, 2020. On November 24, 2020, the Company acquired the remaining non-controlling interest in a Process & 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 consolidated statements of operations or financial position. The Company's results of operations include the acquired operations subsequent to the acquisition date. Pro-forma results of operations and certain other U.S. GAAP disclosures related to the acquisition have not been presented because they are not significant to the Company's consolidated statements of operations or financial position. Year Ended March 31, 2020 On January 28, 2020, the Company acquired substantially all of the assets of Just Manufacturing Company ("Just Manufacturing") for a total cash purchase price of $59.4 million, excluding transaction costs and net of cash acquired. Just Manufacturing, based in Franklin Park, Illinois, manufactures stainless steel sinks and plumbing fixtures primarily used in institutional and commercial end markets and complemented the Company's existing Water Management platform. On May 10, 2019, the Company acquired substantially all of the assets of 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 acquisitions dates. Pro-forma results of operations and certain other U.S. GAAP disclosures related to these acquisitions have not been presented because they are not significant to the Company's consolidated statements of operations or financial position. These acquisitions have been accounted for as business combinations and were 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 allocations associated with these acquisitions resulted in tax deductible goodwill of $27.3 million, other intangible assets of $40.9 million (including tradenames of $2.2 million and $38.7 million of customer relationships), $8.4 million of fixed assets, $9.1 million of trade working capital and other net liabilities of $1.5 million. The purchase price allocations for StainlessDrains.com, which were finalized and adjusted during the year ended March 31, 2020, resulted in a reduction of goodwill of $1.2 million, related to the refinement of the estimated fair value of intangible assets acquired. The preliminary purchase price allocations for Just Manufacturing were adjusted and finalized during the nine months ended December 31, 2020, resulting in $0.8 million increase in goodwill related to the refinement of the estimated fair value of the liabilities assumed as of the acquisition date. During the year ended March 31, 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 consolidated statements of operations or financial position. Year Ended March 31, 2019 On January 23, 2019, the Company acquired an additional 47.5% interest in 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. The acquisition of the additional interest in 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, the Company recognized a $0.2 million gain on the remeasurement of the previously held equity method investment. In addition, in accordance with the authoritative guidance, the Company reclassified the historical foreign currency translation adjustments associated with the equity method investment into the statement of operations, which resulted in the recognition of a $1.8 million loss within other (expense) income, net, on the consolidated statements of operations for the year ended March 31, 2019. The final purchase price for this business combination is 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 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 allocations, which were finalized and adjusted during the year ended March 31, 2020, primarily related to the refinement of the estimated fair value of intangible assets and other working capital acquired. The Company's results of operations include the acquired operations subsequent to the respective acquisition dates. Pro-forma results of operations and certain other U.S. GAAP disclosures related to the acquisitions during the year ended March 31, 2019 have not been presented because they are not significant to the Company's consolidated statements of operations or financial position. On September 24, 2018, the Company acquired certain assets associated with the design and distribution of various roof drains, spouts and flow sensors for institutional, commercial and industrial buildings for $2.0 million. The acquisition of these assets added complementary product lines to the Company's existing Water Management platform and was accounted for as a business combination. This acquisition did not materially affect the Company's consolidated statements of operations or financial position. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations During the year ended March 31, 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 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 the year ended March 31, 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 for the year ended March 31, 2020. No additional loss on the sale of discontinued operations was recognized during the nine months ended December 31, 2020. The major components of the Loss from discontinued operations, net of tax presented in the consolidated statements of operations during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 are included in the table below (in millions): Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 (2) Net sales $ — $ — $ 124.3 Cost of sales — — 94.9 Selling, general and administrative expenses — — 35.1 Amortization of intangible assets — — 0.3 Non-cash asset impairments (1) — — 126.0 Loss on sale of discontinued operations — 1.8 22.5 Other non-operating expenses, net — — 3.2 Loss from discontinued operations before income tax — (1.8) (157.7) Income tax benefit — — 3.0 Loss from discontinued operations, net of tax $ — $ (1.8) $ (154.7) ____________________ (1) The Company recorded non-cash impairments of $126.0 million during the year ended March 31, 2019 to reflect the Company's estimated fair value less costs to sell the VAG business based on the value of the preliminary bids received at that time. (2) Results of operations during the year ended March 31, 2019 reflect the period through November 26, 2018, the date on which the sale of the VAG business was completed. The consolidated statements of cash flows for the prior periods presented have not been adjusted to separately disclose cash flows related to discontinued operations. However, the significant investing cash flows and other significant non-cash operating items associated with the discontinued operations were as follows (in millions): Years Ended March 31, 2020 March 31, 2019 Depreciation $ — $ 4.1 Amortization of intangible assets — 0.3 Non-cash discontinued operations asset impairments — 126.0 Non-cash loss on sale of discontinued operations — 22.5 Capital expenditures — 2.4 Net (payments) proceeds from divestiture of discontinued operations (1.3) 9.0 |
Restructuring and Other Similar
Restructuring and Other Similar Charges | 9 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Similar Charges | Restructuring and Other Similar Charges During the nine months ended December 31, 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 similar initiatives to optimize its operating margin and manufacturing footprint. As the Company continues to evaluate the impact of the COVID-19 pandemic and its effects on the global economy, the Company may also execute additional restructuring actions. As such, the Company expects further expenses related to workforce reductions, potential impairment or accelerated depreciation of assets, lease termination costs and other facility rationalization costs. The Company's restructuring plans are preliminary and the full extent of related expenses are not yet estimable. The following table summarizes the Company's restructuring and other similar costs incurred during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 by classification of operating segment (in millions): Nine Months Ended December 31, 2020 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 8.1 $ 1.6 $ 0.3 $ 10.0 Asset impairment charges (1) 1.9 — — 1.9 Contract termination and other associated costs 2.9 — (0.2) 2.7 Total restructuring and other similar costs $ 12.9 $ 1.6 $ 0.1 $ 14.6 Year Ended March 31, 2020 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 12.7 $ 0.5 $ 0.1 $ 13.3 Contract termination and other associated costs 1.6 0.5 0.1 2.2 Total restructuring and other similar costs $ 14.3 $ 1.0 $ 0.2 $ 15.5 Year Ended March 31, 2019 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 5.6 $ 0.9 $ 0.6 $ 7.1 Asset impairment charges (1) 0.3 — — 0.3 Contract termination and other associated costs 2.0 0.3 2.4 4.7 Total restructuring and other similar costs $ 7.9 $ 1.2 $ 3.0 $ 12.1 Restructuring Costs To-date (Period from April 1, 2011 to December 31, 2020) Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 75.3 $ 10.2 $ 3.0 $ 88.5 Asset impairment charges 5.5 — — 5.5 Contract termination and other associated costs 24.2 4.9 2.3 31.4 Total restructuring and other similar costs $ 105.0 $ 15.1 $ 5.3 $ 125.4 ____________________ (1) In connection with the ongoing supply chain optimization and footprint repositioning initiatives, the Company has taken several actions to consolidate existing manufacturing facilities and rationalize its product offerings. These actions require the Company to assess whether the carrying amount of impacted long-lived assets will be recoverable as well as whether the remaining useful lives require adjustment. The impairment charges associated with these assets recognized during the nine months ended December 31, 2020, and the year ended March 31, 2019 were determined utilizing independent appraisals of the assets and were classified as Level 3 inputs within the Fair Value hierarchy. Refer to Note 13, Fair Value Measurements for additional information. The following table summarizes the activity in the Company's accrual for restructuring and other similar costs for the nine months ended December 31, 2020, and year ended March 31, 2020 (in millions): Employee termination benefits Asset impairment charges Contract termination and other associated costs Total Accrued Restructuring Costs, March 31, 2019 (2) $ 2.4 $ — $ 1.9 $ 4.3 Charges 13.3 — 2.2 15.5 Cash payments (7.4) — (2.6) (10.0) Accrued Restructuring Costs, March 31, 2020 (2) $ 8.3 $ — $ 1.5 $ 9.8 Charges 10.0 1.9 2.7 14.6 Cash payments (12.2) — (3.5) (15.7) Non-cash charges — (1.9) — (1.9) Accrued Restructuring Costs, December 31, 2020 (2) $ 6.1 $ — $ 0.7 $ 6.8 ____________________ |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2020 | |
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. 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 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 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): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 March 31, 2019 Original equipment manufacturers/end users $ 518.1 $ 766.8 $ 768.5 Maintenance, repair, and operations 352.3 591.4 612.1 Total Process & Motion Control $ 870.4 $ 1,358.2 $ 1,380.6 Water safety, quality, flow control and conservation $ 527.4 $ 661.0 $ 624.4 Water infrastructure 35.3 49.1 45.9 Total Water Management $ 562.7 $ 710.1 $ 670.3 Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 Process & Motion Control Water Management Process & Motion Control Water Management Process & Motion Control Water Management United States and Canada $ 510.7 $ 550.2 $ 870.6 $ 694.1 $ 898.7 $ 654.5 Europe 215.0 — 298.9 — 327.5 — Rest of world 144.7 12.5 188.7 16.0 154.4 15.8 Total $ 870.4 $ 562.7 $ 1,358.2 $ 710.1 $ 1,380.6 $ 670.3 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 consolidated balance sheets. The following table presents changes in the Company’s contract assets and liabilities during the nine months ended December 31, 2020 (in millions): Balance Sheet Classification March 31, 2020 Additions Deductions December 31, 2020 Contract Assets Receivables, net $ 0.5 $ 0.1 $ (0.5) $ 0.1 Contract Liabilities (1) Other current liabilities $ 7.3 $ 6.6 $ (9.9) $ 4.0 ____________________ (1) Contract liabilities are reduced when revenue is recognized. Backlog The Company has backlog of $331.4 million and $380.7 million as of December 31, 2020, and March 31, 2020, respectively, 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 91% of the backlog as revenue in the year ending December 31, 2021, and the remaining 9% in the year ending December 31, 2022 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, 2020 and March 31, 2020, respectively, the contract assets capitalized, as well as amortization recognized in the nine months ended December 31, 2020 and year ended March 31, 2020, are not significant and there have been no impairment losses recognized. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The major classes of inventories are summarized as follows (in millions): December 31, March 31, 2020 2020 Finished goods $ 164.6 $ 145.6 Work in progress 38.6 43.7 Purchased components 70.6 70.4 Raw materials 53.4 54.9 Inventories at First-in, First-Out ("FIFO") cost 327.2 314.6 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 2.9 2.9 $ 330.1 $ 317.5 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment, net is summarized as follows (in millions): December 31, March 31, 2020 2020 Land $ 28.3 $ 25.5 Buildings and improvements 288.8 231.5 Machinery and equipment 392.4 371.9 Hardware and software 47.3 43.1 Construction in-progress 31.8 26.4 788.6 698.4 Less accumulated depreciation (353.8) (319.6) $ 434.8 $ 378.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Dec. 31, 2020 | |
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, 2020, and year ended March 31, 2020, by operating segment, consisted of the following (in millions): Goodwill Process & Motion Control Water Management Consolidated Net carrying amount as of March 31, 2019 $ 1,125.2 $ 174.5 $ 1,299.7 Acquisitions (1) — 26.5 26.5 Purchase accounting adjustments (1) 0.4 — 0.4 Currency translation adjustments (4.2) (0.5) (4.7) Net carrying amount as of March 31, 2020 $ 1,121.4 $ 200.5 $ 1,321.9 Acquisitions (1) — 42.8 42.8 Purchase accounting adjustments (1) — 0.8 0.8 Currency translation and other adjustments (2) 3.9 0.7 4.6 Net carrying amount as of December 31, 2020 $ 1,125.3 $ 244.8 $ 1,370.1 ______________________ (1) Refer to Note 3, Acquisitions and Divestiture for additional information regarding acquisitions. (2) Includes $1.8 million of goodwill allocated to the China gearbox product line within the Company's Process & Motion Control platform that was sold during the nine months ending December 31, 2020. See Note 3, Acquisitions and Divestiture for additional information regarding the disposal. Total cumulative goodwill impairment charges as of December 31, 2020 and March 31, 2020 was $436.4 million and $434.6 million, respectively. The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of December 31, 2020 and March 31, 2020 consisted of the following (in millions): December 31, 2020 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 52.0 $ (42.2) $ 9.8 Customer relationships (including distribution network) 14 years 784.9 (578.0) 206.9 Tradenames 13 years 44.1 (17.1) 27.0 Intangible assets not subject to amortization - trademarks and tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,161.9 $ (637.3) $ 524.6 March 31, 2020 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 51.1 $ (41.2) $ 9.9 Customer relationships (including distribution network) 13 years 748.0 (552.5) 195.5 Tradenames 13 years 42.1 (14.2) 27.9 Intangible assets not subject to amortization - trademarks and tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,122.1 $ (607.9) $ 514.2 Intangible asset amortization expense totaled $27.0 million, $35.4 million and $34.0 million for the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019, respectively. Tradenames, and customer relationships acquired during the nine months ended December 31, 2020 were assigned a weighted-average useful life of 5 years and 18 years, respectively. Tradenames, and customer relationships acquired during the year ended March 31, 2020 were assigned a weighted-average useful life of 14 years and 19 years, respectively. The Company expects to recognize amortization expense on the intangible assets subject to amortization of $36.7 million in 2021, $21.0 million in 2022, $18.5 million in 2023, $18.4 million in 2024, and $17.3 million in 2025. |
Other Current Liabilities
Other Current Liabilities | 9 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities are summarized as follows (in millions): December 31, 2020 March 31, 2020 Contract liabilities $ 4.0 $ 7.3 Sales rebates 35.7 35.5 Commissions 5.9 7.0 Restructuring and other similar charges (1) 6.8 9.8 Product warranty (2) 8.9 6.7 Risk management (3) 10.5 10.4 Legal and environmental 2.4 1.5 Taxes, other than income taxes 7.7 8.3 Income taxes payable 14.5 9.9 Interest payable 1.4 8.3 Current portion of operating lease liability (4) 13.3 12.8 Other 14.5 11.0 $ 125.6 $ 128.5 ___________________ (1) See more information related to the restructuring obligations balance within Note 5, Restructuring and Other Similar Charges. (2) See more information related to the product warranty obligations balance within Note 2, Significant Accounting Policies. (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. (4) See more information related to leases within Note 14, Leases. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is summarized as follows (in millions): December 31, 2020 March 31, 2020 Term loan (1) $ 621.5 $ 620.8 4.875% Senior Notes due 2025 (2) 496.3 495.7 Revolving credit facility (3) — 249.2 Securitization facility borrowings (4) — 74.9 Finance leases and other subsidiary debt (5) 73.8 32.8 Total 1,191.6 1,473.4 Less current maturities 2.4 76.4 Long-term debt $ 1,189.2 $ 1,397.0 ____________________ (1) Includes unamortized debt issuance costs of $3.5 million and $4.2 million at December 31, 2020 and March 31, 2020, respectively. (2) Includes unamortized debt issuance costs of $3.7 million and $4.3 million at December 31, 2020 and March 31, 2020, respectively. (3) Includes unamortized debt issuance costs of $0.8 million at March 31, 2020. (4) Includes unamortized debt issuance costs of $0.1 million at March 31, 2020. (5) See more information related to finance leases within Note 14, Leases. Senior Secured Credit Facility At December 31, 2020, 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. As of December 31, 2020 , 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 2.3 to 1.0 as of December 31, 2020 . Term Debt 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 during the year ended March 31, 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. The Term Refinancing Loan has a maturity date of August 21, 2024, and there are no required principal payments due or scheduled under the term debt until the maturity date. 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, 2020 and March 31, 2020, the borrowings under the Term Refinancing Loan and Prior Term Loan had weighted-average effective interest rates of 1.89% and 2.74%, respectively. During the nine months ended December 31, 2020 and year ended March 31, 2020, the borrowings under the Term Refinancing Loan and Prior Term Loan had weighted-average effective interest rates of 2.02% and 3.96%, respectively. During the year ended March 31, 2020, the Company recognized a $1.5 million loss on the debt extinguishment in connection with the aforementioned Amendment, 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 is being amortized over the life of the loan as interest expense using the effective interest method. Following the Amendment, t he Company made a voluntary prepayment on its Term Refinancing Loan of $100.0 million d uring the year ended March 31, 2020 . In connection with this prepayment, the Company recognized an additional $0.7 million loss on debt extinguishment to write-off a portion of the unamortized debt issuance costs. During the year ended March 31, 2019, the Company made a voluntary prepayment on its Prior Term Loan of $75.0 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. Revolving Credit Facility The Credit Agreement includes a $264.0 million revolving credit facility that has a maturity date of March 15, 2023. For revolving commitments, the Company's applicable margin above the base rate is 2.00% in the case of ABR borrowings and 3.00% in the case of Eurocurrency borrowings, subject to a net first lien leverage test. In the event the Company's net first lien leverage ratio is less than 1.5 to 1.0, its applicable margin on both ABR and Eurocurrency borrowings would decrease by twenty-five (25) basis points. The Company's net first lien leverage ratio was 2.3 to 1.0 as of December 31, 2020. In addition to paying interest on outstanding principal, the Company is subject to a commitment fee to the lenders under the revolving credit facility with respect to the unutilized commitments thereunder at a rate equal to 0.50% per annum. At December 31, 2020, no amounts were borrowed under the revolving credit facility, and $250.0 million was borrowed under the revolving credit facility at March 31, 2020. As of and during the nine months ended December 31, 2020 borrowings under the revolving credit facility had weighted-average effective interest rate s of 4.00%. As of and during the year ended March 31, 2020 borrowings under the revolving credit facility had weighted-average effective interest rates of 4.00%. As of December 31, 2020 and March 31, 2020, $3.0 million and $4.7 million of the revolving credit facility were considered utilized in connection with outstanding letters of credit, respectively. 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 December 15, 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. Debt issuance costs associated with the Notes are being amortized over the life of the Notes as interest expense using the effective interest method. The Issuers may redeem some or all of the Notes at any time or from time to time prior to December 15, 2020, at certain "make-whole" redemption prices (as set forth in the Indenture) and after December 15, 2020, at specified redemption prices (as set forth in the Indenture). Additionally, the Issuers may redeem up to 40% of the aggregate principal amount of the Notes at any time or from time to time prior to December 15, 2020 with the net proceeds of specified equity offerings at specified redemption prices (as set forth in the Indenture). Upon a change of control (as defined in the Indenture), the Issuers will be required to make an offer to purchase the Notes at a price equal to 101% of the principal amount of the Notes on the date of purchase plus accrued interest. The Indenture contains customary covenants, such as restrictions on the Issuers and its restricted subsidiaries (but not on Rexnord Corporation) incurring or guaranteeing additional indebtedness or issuing certain preferred shares, paying dividends and making other restricted payments and creating or incurring certain liens. The Notes and Indenture do not contain any financial covenants. The Notes and Indenture contain customary events of default, including the failure to pay principal or interest when due, breach of covenants, cross-acceleration to other debt of the Issuers or restricted subsidiaries in excess of $50 million and bankruptcy events, all subject to terms, including notice and cure periods, as set forth in the Indenture. Accounts Receivable Securitization Program On September 25, 2020, certain subsidiaries of the Company entered into an accounts receivable securitization facility (the “New Securitization”) with Mizuho Bank, Ltd. (“Mizuho”) to replace the Company’s previous $100.0 million accounts receivable securitization facility with Wells Fargo & Company (the “Previous Securitization” and, collectively with the New Securitization, referred to as the “Securitization”), which was scheduled to expire in December 2020. As part of the New Securitization, Rexnord Industries, LLC, Zurn Industries, LLC, Zurn PEX, Inc., Precision Gear LLC, Centa Corporation and Cambridge International, Inc. (collectively, the “Originators”) agreed, pursuant to an Amended and Restated Receivables Sale and Servicing Agreement, dated as of September 25, 2020 (the “Sale Agreement”), to sell all of their existing and future accounts receivable and related assets to Rexnord Funding LLC (“Rexnord Funding”), a bankruptcy-remote special purpose entity, in exchange for cash, subordinated notes and letters of credit. The Originators and Rexnord Funding intend for the transactions contemplated by the Sale Agreement to constitute true sales to Rexnord Funding by the respective Originators. In addition to being an Originator, Rexnord Industries, LLC is also the current servicer under the Sale Agreement. Concurrently with the execution of the Sale Agreement, Rexnord Funding entered into a Receivables Funding and Administration Agreement (the “Funding Agreement”) with Mizuho, as a lender and administrative agent. Pursuant to the Funding Agreement, Rexnord Funding granted Mizuho 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 being used by Rexnord Funding to finance purchases of accounts receivable from the Originators pursuant to the Sale Agreement. The amount of advances available is 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 1.30% per annum. The last date on which advances may be made is September 24, 2021, with a six-month extension option, unless the maturity of the New Securitization is otherwise accelerated. In addition to other customary fees associated with financings of this type, Rexnord Funding pays an unused line fee of 0.40% per annum to Mizuho based on any unused portion of the New Securitization. The Securitization constitutes a “Permitted Receivables Financing” under the Company’s existing credit agreement and a “Qualified Receivables Financing” under the indenture governing the Company’s outstanding senior notes. The Securitization does not qualify for sale accounting under Accounting Standards Codification Topic 860, Transfers and Servicing. Any borrowings under the Securitization are accounted for as secured borrowings on the Company’s consolidated balance sheets. Financing costs associated with the Securitization are recorded within “Interest expense, net” in the consolidated statements of operations if revolving loans or letters of credit are obtained under the Securitization. As of December 31, 2020 and March 31, 2020 , the Company's borrowing capacity under the Securitization was $85.7 million, and $100 million respectively, based on the current accounts receivables balance. As of December 31, 2020 and March 31, 2020, $0.0 million and $75.0 million was borrowed under the Securitization, respectively. In addition, $7.5 million and $5.7 million of available borrowing capacity under the Securitization was considered utilized in connection with outstanding letters of credit at December 31, 2020 and March 31, 2020 , respectively. As of and during the nine months ended December 31, 2020, borrowings under the Securitization had weighted-average effective interest rate s of 1.37% and 1.56%, respectively. As of and during the year ended March 31, 2020, borrowings under the Securitization had weighted-average effective interest rates of 2.19% and 2.09%, respectively. As of December 31, 2020, 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 year ended March 31, 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 year ended March 31, 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, 2020, there are no outstanding balances related to the New Market Tax Credit related debt. At December 31, 2020 and March 31, 2020, various wholly owned subsidiaries had additional debt of $73.8 million and $32.8 million, respectively, comprised primarily of finance lease obligations. For more information related to finance leases, see Note 14, Leases. Future Debt Maturities Future maturities of debt and financing lease obligations as of December 31, 2020, excluding the unamortized debt issuance costs of $7.2 million, were as follows (in millions): Years ending December 31: 2021 $ 2.4 2022 2.4 2023 2.6 2024 627.8 2025 503.0 Thereafter 60.6 $ 1,198.8 |
Comparative Nine Month Financia
Comparative Nine Month Financial Information | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Comparative Nine Month Financial Information | Comparative Nine Month Financial Information As discussed in Note 1, Basis of Presentation and Description of Business, this Form 10-K includes financial information for the Transition Period. Consolidated Statements of Operations and Cash Flows for the nine months ended December 31, 2020 and 2019 are summarized below. All data for the nine months ended December 31, 2019, are derived from the Company's unaudited condensed consolidated financial statements. Consolidated Statements of Operations (in millions) Nine Months Ended December 31, 2020 December 31, 2019 (Unaudited) Net sales $ 1,433.1 $ 1,521.3 Cost of sales 881.4 919.8 Gross profit 551.7 601.5 Selling, general and administrative expenses 321.7 320.0 Restructuring and other similar charges 14.6 8.9 Amortization of intangible assets 27.0 26.3 Income from operations 188.4 246.3 Non-operating (expense) income: Interest expense, net (36.6) (45.2) Gain on the extinguishment of debt — 1.0 Actuarial loss on pension and postretirement benefit obligations (1.6) (0.8) Other income (expense), net 4.5 (0.2) Income from continuing operations before income taxes 154.7 201.1 Provision for income taxes (36.3) (47.7) Equity method investment income 0.2 0.2 Net income from continuing operations 118.6 153.6 Loss from discontinued operations, net of tax — (1.8) Net income 118.6 151.8 Non-controlling interest income 0.4 0.2 Net income attributable to Rexnord 118.2 151.6 Dividends on preferred stock — (14.4) Net income attributable to Rexnord common stockholders $ 118.2 $ 137.2 Basic net income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.98 $ 1.28 Discontinued operations $ — $ (0.02) Net income $ 0.98 $ 1.27 Diluted net income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.96 $ 1.24 Discontinued operations $ — $ (0.01) Net income $ 0.96 $ 1.22 Weighted-average number of common shares outstanding (in thousands): Basic 120,428 108,250 Effect of dilutive equity awards 2,771 15,560 Diluted 123,199 123,810 Consolidated Statements of Cash Flows (in millions) Nine Months Ended December 31, 2020 December 31, 2019 (Unaudited) Operating activities Net income $ 118.6 $ 151.8 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 40.0 38.0 Amortization of intangible assets 27.0 26.3 Gain on dispositions of property, plant and equipment (1.1) — Deferred income taxes (7.0) 4.9 Actuarial loss on pension and postretirement benefit obligations 1.6 0.8 Other non-cash charges (0.2) 0.5 Gain on extinguishment of debt — (1.0) Stock-based compensation expense 36.6 18.7 Changes in operating assets and liabilities: Receivables 65.1 34.4 Inventories 0.5 (34.4) Other assets 2.4 (18.2) Accounts payable (65.1) (12.4) Accruals and other (22.1) (34.7) Cash provided by operating activities 196.3 174.7 Investing activities Expenditures for property, plant and equipment (28.3) (25.5) Acquisitions, net of cash acquired (102.0) (25.1) Proceeds from dispositions of long-lived assets 7.8 2.9 Net payment from divestiture of discontinued operations — (1.3) Cash used for investing activities (122.5) (49.0) Financing activities Proceeds from borrowings of debt 6.0 725.0 Repayments of debt (336.4) (835.3) Repurchase of common stock (59.3) (20.0) Payment of common stock dividends (28.8) — Payment of preferred stock dividends — (17.4) Proceeds from exercise of stock options 18.3 16.8 Taxes withheld and paid on employees' share-based payment awards (9.4) (7.6) Cash used for financing activities (409.6) (138.5) Effect of exchange rate changes on cash, cash equivalents and restricted cash 18.0 (2.7) Decrease in cash, cash equivalents and restricted cash (317.8) (15.5) Cash, cash equivalents and restricted cash at beginning of period 573.4 292.5 Cash, cash equivalents and restricted cash at end of period $ 255.6 $ 277.0 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2020 | |
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 Non-Derivative Financial Instruments The carrying amounts of cash, receivables, payables and accrued liabilities approximated fair value at December 31, 2020 and March 31, 2020 due to the short-term nature of those instruments. The fair value of long-term debt recorded on the consolidated balance sheets as of December 31, 2020 and March 31, 2020 was approximately $1,209.3 million and $1,398.1 million, respectively. The fair value is based on quoted market prices for the same issues. Long-lived Assets and Intangible Assets Long-lived assets (which include property, plant and equipment and real estate) may be measured at fair value if such assets are held-for-sale or when there is a determination that the asset is impaired. Intangible assets (which include patents, tradenames, customer relationships, and non-compete agreements) also may be measured at fair value when there is a determination that the asset is impaired. The determination of fair value for these assets is based on the best information available that resides within Level 3 of the fair value hierarchy, including internal cash flow estimates discounted at an appropriate interest rate, quoted market prices when available, market prices for similar assets and independent appraisals, as appropriate. For real estate, cash flow estimates are based on current market estimates that reflect current and projected lease profiles and available industry information about expected trends in rental, occupancy and capitalization rates. |
Leases
Leases | 9 Months Ended |
Dec. 31, 2020 | |
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 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 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 consolidated balance sheets are summarized as follows (in millions): Leases Classification December 31, 2020 March 31, 2020 Assets: Operating ROU assets Other assets $ 71.3 $ 71.1 Finance ROU assets Property, plant and equipment, net (1) 71.5 27.3 Total ROU assets $ 142.8 $ 98.4 Liabilities: Current Operating Other current liabilities $ 13.3 $ 12.8 Finance Current maturities of debt 2.2 0.5 Non-current Operating Other liabilities 60.1 63.1 Finance Long-term debt 71.2 27.4 Total lease liabilities $ 146.8 $ 103.8 ____________________ (1) Finance lease assets are recorded net of accumulated amortization of $3.4 million and $1.0 million as of December 31, 2020 and March 31, 2020. The components of lease expense reported in the consolidated statements of operations are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating lease expenses (1) $ 13.8 $ 15.0 Finance lease expenses: Depreciation of finance ROU assets (1) 2.4 1.0 Interest on lease liabilities (2) 2.4 1.6 Total finance lease expense 4.8 2.6 Variable and short-term lease expense (1) 4.0 4.4 Total lease expense $ 22.6 $ 22.0 ____________________ (1) Included in cost of sales and selling, general and administrative expenses. (2) Included in interest expense, net. Lease expense under operating leases totaled $18.3 million for the year ended March 31, 2019. Future minimum lease payments under operating and finance leases as of December 31, 2020 are as follows (in millions): Years ending December 31, Operating Leases (1) Finance Leases (1) 2021 16.1 6.1 2022 16.1 6.1 2023 13.2 6.3 2024 10.8 6.3 2025 7.1 6.3 Thereafter 24.5 88.5 Total future minimum lease payments 87.8 119.6 Less: Imputed interest (14.4) (46.2) Total lease liabilities $ 73.4 $ 73.4 ____________________ (1) Excludes legally binding minimum lease payments for leases signed but not yet commenced. The weighted-average remaining lease terms and discount rates for leases are as follows: Nine Months Ended Year Ended Lease Term and Discount Rate December 31, 2020 March 31, 2020 Weighted-average remaining lease terms (years): Operating leases 6.3 6.7 Finance leases 19.2 27.8 Weighted-average discount rate: Operating leases 4.8 % 4.6 % Finance leases 5.4 % 5.7 % Cash paid for amounts included in the measurement of lease liabilities are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating cash flows from operating leases $ 11.5 $ 14.4 Operating cash flows from finance leases 2.4 1.5 Financing cash flows from finance leases 1.1 0.4 ROU assets obtained in exchange for lease liabilities are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating leases $ 5.1 $ 43.4 Finance leases 46.6 1.0 |
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 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 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 consolidated balance sheets are summarized as follows (in millions): Leases Classification December 31, 2020 March 31, 2020 Assets: Operating ROU assets Other assets $ 71.3 $ 71.1 Finance ROU assets Property, plant and equipment, net (1) 71.5 27.3 Total ROU assets $ 142.8 $ 98.4 Liabilities: Current Operating Other current liabilities $ 13.3 $ 12.8 Finance Current maturities of debt 2.2 0.5 Non-current Operating Other liabilities 60.1 63.1 Finance Long-term debt 71.2 27.4 Total lease liabilities $ 146.8 $ 103.8 ____________________ (1) Finance lease assets are recorded net of accumulated amortization of $3.4 million and $1.0 million as of December 31, 2020 and March 31, 2020. The components of lease expense reported in the consolidated statements of operations are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating lease expenses (1) $ 13.8 $ 15.0 Finance lease expenses: Depreciation of finance ROU assets (1) 2.4 1.0 Interest on lease liabilities (2) 2.4 1.6 Total finance lease expense 4.8 2.6 Variable and short-term lease expense (1) 4.0 4.4 Total lease expense $ 22.6 $ 22.0 ____________________ (1) Included in cost of sales and selling, general and administrative expenses. (2) Included in interest expense, net. Lease expense under operating leases totaled $18.3 million for the year ended March 31, 2019. Future minimum lease payments under operating and finance leases as of December 31, 2020 are as follows (in millions): Years ending December 31, Operating Leases (1) Finance Leases (1) 2021 16.1 6.1 2022 16.1 6.1 2023 13.2 6.3 2024 10.8 6.3 2025 7.1 6.3 Thereafter 24.5 88.5 Total future minimum lease payments 87.8 119.6 Less: Imputed interest (14.4) (46.2) Total lease liabilities $ 73.4 $ 73.4 ____________________ (1) Excludes legally binding minimum lease payments for leases signed but not yet commenced. The weighted-average remaining lease terms and discount rates for leases are as follows: Nine Months Ended Year Ended Lease Term and Discount Rate December 31, 2020 March 31, 2020 Weighted-average remaining lease terms (years): Operating leases 6.3 6.7 Finance leases 19.2 27.8 Weighted-average discount rate: Operating leases 4.8 % 4.6 % Finance leases 5.4 % 5.7 % Cash paid for amounts included in the measurement of lease liabilities are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating cash flows from operating leases $ 11.5 $ 14.4 Operating cash flows from finance leases 2.4 1.5 Financing cash flows from finance leases 1.1 0.4 ROU assets obtained in exchange for lease liabilities are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating leases $ 5.1 $ 43.4 Finance leases 46.6 1.0 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In accordance with ASC 718, the Company recognizes compensation costs related to share-based payment transactions. Generally, compensation cost is measured based on the grant-date fair value of the equity instruments issued. Compensation cost is recognized over the requisite service period, generally as the awards vest. The Rexnord Corporation Performance Incentive Plan, which was last approved by stockholders in fiscal 2020 (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. To date, equity awards consisting of stock options, Restricted Stock Units ("RSUs") and Performance Stock Units ("PSUs") have been issued under the Plan. The options granted under the Plan have a maximum term of 10 years after the grant date. Options and RSUs granted since fiscal 2016 generally vest ratably over 3 years. Options and RSUs granted during the Transition Period vest in two equal installments, with the first installment vesting on the first anniversary of the grant date and the second installment vesting on December 31, 2021. RSUs granted to nonemployee directors vest immediately, but shares are not issued until six months after the director's cessation of service. PSUs granted prior to the Transition Period generally cliff vest after 3 years. PSUs granted during the Transition Period cliff vest based on performance in the period from April 1, 2020, through December 31, 2021. The Plan permits the grant of awards that may deliver up to an aggregate of 13,150,000 shares of common stock. The Plan is administered by the Compensation Committee. During the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, the Company recorded $36.6 million, $26.9 million and $22.6 million of stock-based compensation expense, respectively (the related tax benefit on these amounts was $7.2 million for the nine months ended December 31, 2020, $6.3 million for the year ended March 31, 2020 and $5.2 million for the year ended March 31, 2019). During the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, the Company also recorded $1.8 million, $5.4 million and $1.9 million, respectively, of an excess tax benefit related to stock options exercised during each period. As of December 31, 2020, there was $35.8 million of total unrecognized compensation cost related to non-vested stock options, RSUs and PSUs granted under the Plan. That cost is expected to be recognized over a weighted-average period of 1.02 years. Stock Options The fair value of each option granted under the Plan was estimated on the date of grant using the Black-Scholes valuation model that uses the following weighted-average assumptions: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Expected option term (in years) 6.5 6.5 6.5 Expected volatility factor 35 % 29 % 30 % Weighted-average risk free interest rate 0.48 % 2.27 % 2.85 % Expected dividend rate 1.3 % 0.0 % 0.0 % Management’s estimate of the option term for options granted under the Plan is based on the midpoint between when the options vest and when they expire. The Company uses the simplified method to determine the expected term, as management does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term. The Company’s expected volatility assumption for options granted is based on the historical volatility of the Company's common stock price. The weighted average risk free interest rate is based on the U.S. Treasury yield curve in effect at the date of grant. The weighted-average grant date fair value of options granted under the Plan during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019 was $7.69, $9.50 and $10.59, respectively. The total fair value of options vested during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 was $4.6 million, $10.2 million and $12.3 million, respectively. A summary of stock option activity during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019 is as follows: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Number of shares under options: Outstanding at beginning of period 5,513,156 $ 22.28 7,843,911 $ 20.49 8,117,947 $ 19.50 Granted 197,565 25.54 154,934 27.50 564,666 28.88 Exercised (1) (1,780,068) 20.92 (2,398,363) 16.65 (642,953) 14.21 Canceled/Forfeited (67,831) 26.90 (87,326) 25.69 (195,749) 23.95 Outstanding at end of period (2) 3,862,822 $ 22.99 5,513,156 $ 22.28 7,843,911 $ 20.49 Exercisable at end of period (3) 3,450,079 $ 22.50 4,739,921 $ 21.61 5,833,565 $ 19.42 ______________________ (1) The total intrinsic value of options exercised during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 was $19.9 million, $35.1 million and $9.9 million, respectively. (2) The weighted average remaining contractual life of options outstanding was 5.6 years at December 31, 2020, 5.4 years at March 31, 2020 and 5.5 years at March 31, 2019. The aggregate intrinsic value of options outstanding at December 31, 2020 was $63.7 million. (3) The weighted average remaining contractual life of options exercisable was 5.3 years at December 31, 2020, 4.9 years at March 31, 2020 and 4.6 years at March 31, 2019. The aggregate intrinsic value of options exercisable at December 31, 2020 was $58.6 million. Shares Weighted Avg. Exercise Price Nonvested options at beginning of period 773,235 $ 26.41 Granted 197,565 25.54 Vested (509,543) 25.41 Canceled/Forfeited (48,514) 27.25 Nonvested options at end of period 412,743 $ 27.13 Restricted Stock Units During the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 the Company granted RSUs to certain of its officers, directors, and employees. The fair value of each award is determined based on the Company's closing stock price on the date of grant. A summary of RSU activity during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019 is as follows: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Nonvested RSUs at beginning of period 545,275 $ 27.54 417,347 $ 25.94 368,182 $ 21.55 Granted 430,646 25.56 422,707 27.52 300,119 28.87 Vested (287,696) 26.90 (253,831) 24.90 (149,531) 24.30 Canceled/Forfeited (40,557) 27.04 (40,948) 27.29 (101,423) 21.10 Nonvested RSUs at end of period 647,668 $ 26.54 545,275 $ 27.54 417,347 $ 25.94 Performance Stock Units During the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, the Company granted PSU's to certain of its officers and employees. The PSUs granted during the nine months ended December 31, 2020, have a 21 month performance period (April 1, 2020, to December 31, 2021) while the PSUs granted during the years ended March 31, 2020 and 2019 have a three-year performance period, and are earned and vest, subject to continued employment, based on performance relative to metrics determined by the Compensation Committee. The number of performance share awards earned, which can range between 0% and 200% of the target awards granted depending on the Company's actual performance during the respective performance period, will be satisfied with Rexnord common stock. A summary of PSU activity during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019 is as follows: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Nonvested PSUs at beginning of period 480,186 $ 28.01 351,104 $ 27.76 453,001 $ 25.53 Granted 547,374 25.52 324,619 27.50 183,069 28.91 Vested — — (169,748) 23.13 (217,319) 23.89 Canceled/Forfeited (4,575) 26.23 (25,789) 26.99 (67,647) 28.37 Nonvested PSUs at end of period 1,022,985 $ 26.68 480,186 $ 28.01 351,104 $ 27.76 During the nine months ended December 31, 2020, PSUs were granted with vesting based on goals related to free cash flow conversion. During the years ended March 31, 2020 and 2019, PSUs were granted with vesting based on goals related to free cash flow conversion and return on invested capital. The fair value of the portion of PSUs with vesting based on free cash flow conversion and return on invested capital is determined based on the Company's closing stock price on the date of grant. |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company sponsors pension and other postretirement benefit plans for certain employees. Most of the Company’s employees are accumulating retirement income benefits through defined contribution plans. However, the Company sponsors frozen pension plans for certain salaried participants and ongoing pension benefits for certain employees represented by collective bargaining. These plans provide for monthly pension payments to eligible employees upon retirement. Pension benefits for salaried employees generally are based on years of frozen credited service and average earnings. Pension benefits for hourly employees generally are based on specified benefit amounts and years of service. The Company’s policy is to fund its pension obligations in conformity with the funding requirements under applicable laws and governmental regulations. Other postretirement benefits consist of retiree medical plans that cover a portion of employees in the United States that meet certain age and service requirements. Net periodic benefit costs recorded on a quarterly basis are primarily comprised of service and interest cost, amortization of unrecognized prior service cost and the expected return on plan assets. The service cost component of net periodic benefit cost is presented within Cost of sales and Selling, general and administrative expenses in the statements of operations while the other components of net periodic benefit cost are presented within Other expense (income), net. The Company recognizes the net actuarial gains or losses in excess of the corridor in operating results during the final quarter of each fiscal year (or upon any required re-measurement event). The corridor is 10% of the greater of the projected benefit obligation or the fair value of the plan assets. In connection with this accounting policy, the Company recognized non-cash actuarial (losses) gains of $(1.6) million, $(36.6) million, and $0.4 million, during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, respectively. These amounts are recorded within Actuarial (loss) gain on pension and postretirement benefit obligations in the consolidated statements of operations. During the year ended March 31, 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 year ended March 31, 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 year ended March 31, 2020. The components of net periodic benefit cost reported in the consolidated statements of operations are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 March 31, 2019 Pension Benefits: Service cost $ 0.4 $ 0.5 $ 0.5 Interest cost 13.9 21.9 23.6 Expected return on plan assets (13.9) (22.5) (24.8) Benefit cost associated with special events: Settlement (1) — 0.8 0.6 Recognition of actuarial losses 1.6 35.9 0.7 Net periodic benefit cost $ 2.0 $ 36.6 $ 0.6 Other Postretirement Benefits: Service cost $ — $ — $ — Interest cost 0.4 0.7 0.8 Amortization: Prior service credit (0.2) (0.3) (1.5) Recognition of actuarial gains — (0.1) (1.7) Net periodic benefit expense (income) $ 0.2 $ 0.3 $ (2.4) ______________________ (1) During the year ended March 31, 2019, the Company settled the benefits of a Canadian defined benefit pension plan through either a lump-sum transfer or the purchase of an annuity from an insurance company. As a result of the settlement, the Company performed a re-measurement of the plan assets and benefit obligations for the pension plan as at March 31, 2019, which resulted in the immediate recognition of a $0.6 million non-cash actuarial loss, which is recorded within Actuarial (loss) gain on pension and postretirement obligations in the consolidated statements of operations during the year ended March 31, 2019. In addition, during the year ended March 31, 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 year ended March 31, 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 a $0.8 million non-cash actuarial loss, which is recorded within Actuarial (loss) gain on pension and post retirement obligations in the consolidated statements of operations during the year ended March 31, 2020. During the nine months ended December 31, 2020, the recognition of $1.6 million of non-cash actuarial loss was due to favorable asset performance and contributions made to the plan partially offset by decreases in the discount rate utilized within the annual remeasurement of the Company's defined benefit plans. During the year ended March 31, 2020, the recognition of $36.6 million of non-cash actuarial loss was due to the Cambridge International Holdings Corp. plan termination described above and decreases in discount rates coupled with lower than expected asset return, partially offset by decreases in life expectancy assumptions utilized within the annual remeasurement of the Company's defined benefit plans. During the year ended March 31, 2019, the recognition of $0.4 million of non-cash actuarial gains was primarily due to the foreign plan settlement described above, offset by improved demographic and claims experience associated with the Company’s other postretirement benefit plans. The Company made contributions to its U.S. qualified pension plan trusts of $6.0 million, $0.3 million, and $1.3 million during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019, respectively. The status of the plans is summarized as follows (in millions): Pension Benefits Other Postretirement Benefits Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Benefit obligation at beginning of period $ (623.2) $ (623.8) $ (16.1) $ (16.9) Service cost (0.4) (0.5) — — Interest cost (13.9) (21.9) (0.4) (0.7) Actuarial (losses) gains (44.2) (33.0) 0.2 (0.6) Benefits paid 29.0 54.0 1.2 2.4 Plan participant contributions — — (0.3) (0.3) Translation and other adjustments (9.4) 2.0 — — Benefit obligation at end of period $ (662.1) $ (623.2) $ (15.4) $ (16.1) Plan assets at the beginning of the period $ 446.9 $ 480.2 $ — $ — Actual return on plan assets 73.3 15.0 — — Contributions 7.9 6.6 1.3 2.4 Benefits paid (29.0) (54.0) (1.3) (2.4) Translation adjustment 4.4 (0.9) — — Plan assets at end of period $ 503.5 $ 446.9 $ — $ — Funded status of plans $ (158.6) $ (176.3) $ (15.4) $ (16.1) Net amount on Consolidated Balance Sheets consists of: Non-current assets $ 0.5 $ 0.4 $ — $ — Current liabilities (1.7) (1.6) (1.4) (1.6) Long-term liabilities (157.4) (175.1) (14.0) (14.5) Total net funded status $ (158.6) $ (176.3) $ (15.4) $ (16.1) As of December 31, 2020, the Company had pension plans with a combined projected benefit obligation of $662.1 million compared to plan assets of $503.5 million, resulting in an under-funded status of $158.6 million compared to an under-funded status of $176.3 million at March 31, 2020. The Company’s funded status improved during the nine months ended December 31, 2020 primarily due to favorable asset performance and contributions made to the plan partially offset by decreases in the discount rate assumptions. Any further changes in the assumptions underlying the Company’s pension values, including those that arise as a result of declines in equity markets and changes in interest rates, could result in increased pension obligation and pension cost which could negatively affect the Company’s consolidated financial position and results of operations in future periods. Amounts included in accumulated other comprehensive loss (income), net of tax, related to defined benefit plans at December 31, 2020 and March 31, 2020 consist of the following (in millions): As of December 31, 2020 Pension Postretirement Total Unrecognized prior service credit $ (0.1) $ (0.9) $ (1.0) Unrecognized actuarial loss (gain) 40.0 (1.2) 38.8 Accumulated other comprehensive loss (income), gross 39.9 (2.1) 37.8 Deferred income tax (benefit) provision (10.5) 0.5 (10.0) Accumulated other comprehensive loss (income), net $ 29.4 $ (1.6) $ 27.8 As of March 31, 2020 Pension Postretirement Total Unrecognized prior service credit $ (0.1) $ (1.1) $ (1.2) Unrecognized actuarial loss (gain) 56.5 (1.1) 55.4 Accumulated other comprehensive loss (income), gross 56.4 (2.2) 54.2 Deferred income tax (benefit) provision (14.1) 0.5 (13.6) Accumulated other comprehensive loss (income), net $ 42.3 $ (1.7) $ 40.6 The following table presents significant assumptions used to determine benefit obligations and net periodic benefit cost (income) in weighted-average percentages: Pension Benefits Other Postretirement Benefits December 31, 2020 March 31, 2020 March 31, 2019 December 31, 2020 March 31, 2020 March 31, 2019 Benefit Obligations: Discount rate 2.3 % 3.1 % 3.7 % 2.4 % 3.3 % 3.9 % Rate of compensation increase 3.0 % 3.0 % 2.9 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.1 % 3.7 % 3.7 % 3.3 % 3.9 % 4.0 % Rate of compensation increase 3.0 % 2.9 % 2.9 % n/a n/a n/a Expected return on plan assets 4.3 % 4.9 % 5.1 % n/a n/a n/a In evaluating the expected return on plan assets, consideration was given to historical long-term rates of return on plan assets and input from the Company’s pension fund consultant on asset class return expectations, long-term inflation and current market conditions. The following table presents the Company’s target investment allocations for the nine months ended December 31, 2020 and actual investment allocations at December 31, 2020 and March 31, 2020. Plan Assets December 31, 2020 March 31, 2020 Investment Target Actual Actual Equity securities 20% - 30% 28% 27% 29% Debt securities (including cash and cash equivalents) 55% - 80% 64% 63% 61% Other 0% - 10% 8% 10% 10% ______________________ (1) The investment policy allocation represents the guidelines of the Company's pension plans based on the changes in the plans funded status. (2) The target allocations represent the weighted average target allocations for the Company's pension plans. The Company's defined benefit pension utilizes a dynamic liability driven investment ("LDI") strategy. The objective is to more closely align the pension plan assets with its liabilities in terms of how both respond to interest rate changes. The plan assets are allocated into two investment categories: (i) LDI, comprised of high quality, investment grade fixed income securities and (ii) return seeking, comprised of traditional securities and alternative asset classes. All assets are managed externally according to guidelines established individually with investment managers and the Company's investment consultant. The Company periodically undertakes asset and liability modeling studies to determine the appropriateness of the investments. The Company intends to continuously reduce the assets allocated to the return seeking category, thereby increasing the assets allocated to the LDI category based on the overall improvement in the plan funded status. No equity securities of the Company are held in the portfolio. The fair values of the Company’s pension plan assets for both the U.S and non-U.S. plans at December 31, 2020 and March 31, 2020, by asset category are included in the table below (in millions). For additional information on the fair value hierarchy and the inputs used to measure fair value, see Note 13, Fair Value Measurements. As of December 31, 2020 Quoted Prices in Significant Other Significant Assets measured at net asset value Total Cash and cash equivalents $ 9.6 $ — $ — $ — $ 9.6 Investment funds Fixed income funds (2) — — — 313.8 313.8 U.S. equity funds (3) 12.9 — — 61.2 74.1 International equity funds (3) — — — 37.2 37.2 Balanced funds (3) — — — 6.8 6.8 Alternative investment funds (4) — — — 22.1 22.1 Insurance contracts — — 39.9 — 39.9 Total $ 22.5 $ — $ 39.9 $ 441.1 $ 503.5 As of March 31, 2020 Quoted Prices in Significant Other Significant Assets measured at net asset value Total Cash and cash equivalents $ 11.1 $ — $ — $ — $ 11.1 Investment funds Fixed income funds (2) — — — 272.4 272.4 U.S. equity funds (3) 11.7 — — 56.2 67.9 International equity funds (3) — — — 35.7 35.7 Balanced funds (3) — — — 5.6 5.6 Alternative investment funds (4) — — — 21.6 21.6 Insurance contracts — — 32.6 — 32.6 Total $ 22.8 $ — $ 32.6 $ 391.5 $ 446.9 ______________________ (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (2) The Company's fixed income mutual and commingled funds primarily include investments in U.S. government securities and corporate bonds. The commingled funds also include an insignificant portion of investments in asset-backed securities or partnerships. The mutual and commingled funds are primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. (3) The Company's equity mutual and commingled funds primarily include investments in U.S. and international common stock. The balanced mutual and commingled funds invest in a combination of fixed income and equity securities. The mutual and commingled funds are primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. (4) The Company's alternative investments include venture capital and partnership investments. Alternative investments are valued using the net asset value, which reflects the plan's share of the fair value of the investments. The Company is generally able to redeem investments at periodic times during the year with notice provided to the general partner. The table below sets forth a summary of changes in the fair value of the Level 3 investments for the years ended December 31, 2020 and March 31, 2020 (in millions): Insurance Ending balance, March 31, 2019 $ 29.9 Actual return on assets: Related to assets held at reporting date 2.7 Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, March 31, 2020 32.6 Actual return on assets: Related to assets held at reporting date 7.3 Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, December 31, 2020 $ 39.9 Expected benefit payments to be paid in each of the next five years and in the aggregate for the five years thereafter are as follows (in millions): Years Ending December 31: Pension Other 2021 $ 38.6 $ 1.4 2022 38.4 1.4 2023 38.7 1.3 2024 37.9 1.3 2025 37.4 1.2 2026 - 2030 179.3 4.8 Pension Plans That Are Not Fully Funded At December 31, 2020, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of the fair value of plan assets were $622.0 million, $617.6 million and $462.9 million, respectively. At March 31, 2020, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of the fair value of plan assets were $590.5 million, $585.9 million and $413.9 million, respectively. Other Postretirement Benefits The other postretirement benefit obligation was determined using an assumed health care cost trend rate of 6.3% in 2021 grading down to 5.0% in 2026 and thereafter. The discount rate, compensation rate increase and health care cost trend rate assumptions are determined as of the measurement date. Defined Contribution Savings Plans The Company sponsors certain defined-contribution savings plans for eligible employees. Expense recognized related to these plans was $5.7 million, $7.7 million and $15.5 million during the nine months ended December 31, 2020, and for the years ended March 31, 2020 and March 31, 2019 , respectively. During the nine months ended December 31, 2020, the Company granted 156,316 shares of common stock with a weighted average grant date fair value of $30.38 per share to eligible employees related to these plans. Deferred Compensation Plan The Company has a nonqualified deferred compensation plan for certain executives and other highly compensated employees. Assets are invested primarily in mutual funds and corporate-owned life insurance contracts held in a Rabbi trust and restricted for payments to participants of the plan. The assets and liabilities are classified in Other assets and Other liabilities, respectively, on the consolidated balance sheets. Changes in the values of the assets held by the rabbi trust and changes in the value of the deferred compensation liability are recorded in Other expense (income), net in the consolidated statements of operations. The fair values of the Company’s deferred compensation plan assets and liability are included in the table below (in millions). For additional information on the fair value hierarchy and the inputs used to measure fair value, see Note 13, Fair Value Measurements. Fair Value as of December 31, 2020 Quoted Prices in Significant Other Significant Total Deferred compensation plan assets: Mutual funds (1) $ 1.0 $ — $ — $ 1.0 Corporate-owned life insurance policies (2) — 10.7 — 10.7 Total assets at fair value $ 1.0 $ 10.7 $ — $ 11.7 Deferred compensation liability at fair value (3): $ 11.9 $ — $ — $ 11.9 Fair Value as of March 31, 2020 Quoted Prices in Significant Other Significant Total Deferred compensation plan assets: Mutual funds (1) $ 1.7 $ — $ — $ 1.7 Corporate-owned life insurance policies (2) — 5.5 — 5.5 Total assets at fair value $ 1.7 $ 5.5 $ — $ 7.2 Deferred compensation liability at fair value (3): $ 7.4 $ — $ — $ 7.4 ______________________ (1) The Company has elected to use the fair value option for the mutual funds to better align the measurement of the assets with the measurement of the liability, which are measured using quoted prices of identical instruments in active markets and are categorized as Level 1. (2) The 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, and are categorized as Level 2. (3) The deferred compensation liability is measured at fair value based on the quoted prices of identical instruments to the investment vehicles selected by the participants. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes consists of amounts for taxes currently payable, amounts for tax items deferred to future periods; as well as, adjustments relating to the Company’s determination of uncertain tax positions, including interest and penalties. The Company recognizes deferred tax assets and liabilities based on the future tax consequences attributable to tax net operating loss (“NOL”) carryforwards, capital loss carryforwards, tax credit carryforwards and differences between the financial statement carrying amounts and the tax bases of applicable assets and liabilities. Deferred tax assets are regularly reviewed for recoverability and valuation allowances are established based on historical losses, projected future taxable income and the expected timing of the reversals of existing temporary differences. As a result of this review, the Company established a full valuation allowance against U.S. federal and state capital loss carryforwards, as well as certain state tax credit carryforwards, and continues to maintain 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. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (“U.S. Tax Reform”). U.S. Tax Reform incorporated significant changes to U.S. corporate income tax laws including, among other items, a reduction in the statutory federal corporate income tax rate from 35% to 21%, an exemption for dividends received from certain foreign subsidiaries, a one-time repatriation tax on deemed repatriated earnings from foreign subsidiaries, immediate taxation of deemed low-taxed “intangible” income earned in foreign jurisdictions (referred to as global intangible low-taxed income or “GILTI”), immediate expensing of certain depreciable tangible assets, limitations on the deduction for net interest expense and certain executive compensation and the repeal of the Domestic Production Activities Deduction (“DPAD”). In acknowledgment of the substantial and substantive changes incorporated in U.S. Tax Reform, in conjunction with the timing of the enactment being just weeks before the majority of the provisions became effective, the SEC staff issued Staff Accounting Bulletin (“SAB”) 118 to provide certain guidance in determining the accounting for income tax effects of the legislation in the accounting period of enactment as well as provide a measurement period (similar to that used when accounting for business combinations) within which to finalize and reflect such final effects associated with U.S. Tax Reform. Further, SAB 118 summarized a three-step approach to be applied each reporting period within the overall measurement period: (1) amounts should be reflected in the period including the date of enactment for those items which are deemed to be complete (i.e. all information is available and appropriately analyzed to determine the applicable financial statement impact), (2) to the extent the effects of certain changes due to U.S. Tax Reform for which the accounting is not deemed complete but for which a reasonable estimate can be determined, such provisional amount(s) should be reflected in the period so determined and adjusted in subsequent periods as such effects are finalized and (3) to the extent a reasonable estimate cannot be determined for a specific effect of the tax law change associated with U.S. Tax Reform, no provisional amount should be recorded but rather, continue to apply ASC 740, based upon the tax law in effect prior to the enactment of U.S. Tax Reform. Such measurement period is deemed to end when all necessary information has been obtained, prepared and analyzed such that a final accounting determination can be concluded, but in no event should the period extend beyond one year. In consideration of this guidance, the Company obtained, prepared and analyzed various information associated with the enactment of U.S. Tax Reform (including subsequent Internal Revenue Service (“IRS”) Notices, etc.). Based upon this review, the Company recognized an estimated net income tax benefit with respect to U.S. Tax Reform for fiscal 2018 of $66.5 million (including amounts relating to the VAG business). This net income tax benefit reflects a $66.5 million net estimated income tax benefit associated with the remeasurement of the Company’s net U.S. deferred tax liability (including consideration of executive compensation limitations under U.S. Tax Reform), with no net tax impact associated with the one-time repatriation tax. Due to the timing and complexity of the various technical provisions provided for under U.S. Tax Reform, the financial statement impacts recorded for fiscal 2018 relating to U.S. Tax Reform were not deemed to be complete but rather were deemed to be reasonable, provisional estimates based upon the current available information and related interpretations. For example, the Company was required to use estimates for earnings and profits and taxes in conjunction with determining the impact of the one-time repatriation tax. In addition, in relation to the remeasurement of the Company’s net U.S. deferred tax liability (as well as numerous other aspects of U.S. Tax Reform), the Company had to use judgment based upon available guidance and interpretations of such guidance at that time. Future guidance could result in changes to the Company’s interpretation, and as such, result in changes to previously recorded amounts. Such changes were required to be reflected as discrete items in the applicable period. The Company had continued to review and analyze various IRS Notices, proposed regulations and other pertinent information that became available during fiscal 2019. Based upon that review and analysis as well as updates to certain financial information, the Company had determined the net impact of U.S. Tax Reform for fiscal 2018 to be a net income tax benefit of $65.9 million. The $0.6 million reduction from the $66.5 million net income tax benefit originally recorded in fiscal 2018 was recorded as a discrete item in the third quarter of fiscal 2019. This reduction consisted of a $0.8 million adjustment to the Company’s net U.S. deferred tax liability as of March 31, 2018, partially offset with a $0.2 million net income tax benefit associated with the one-time repatriation tax. The Company determined the adjusted net tax benefit recorded for U.S. Tax Reform to be complete as of December 31, 2018. Income Tax Provision The components of the provision for income taxes are as follows (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 2019 Current: United States $ 20.0 $ 31.3 $ 55.7 Non-United States 18.7 18.6 21.6 State and local 5.0 5.8 8.0 Total current 43.7 55.7 85.3 Deferred: United States (5.9) 1.0 (23.0) Non-United States 1.7 (3.3) (5.2) State and local (3.2) 0.7 (3.7) Total deferred (7.4) (1.6) (31.9) Provision for income taxes $ 36.3 $ 54.1 $ 53.4 The provision for income taxes differs from the United States statutory income tax rate due to the following items (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 2019 Provision for income taxes at U.S. federal statutory income tax rate $ 32.5 $ 49.6 $ 50.1 State and local income taxes, net of federal benefit 2.9 5.2 5.3 Net effects of foreign rate differential 2.5 2.6 1.8 Net effects of foreign operations 2.5 2.6 1.6 Net effect to deferred taxes for changes in tax rates 0.5 (1.1) (2.6) Net effect to deferred taxes for U.S. Tax Reform — — 0.8 Net effect of U.S. Tax Reform transition tax — — (0.1) Net effects of GILTI inclusion (2.9) 6.4 6.5 Foreign derived intangible income deduction (1.0) (1.9) (1.8) Unrecognized tax benefits, net of federal benefit 2.5 (6.8) (7.0) Research and development credit (0.7) (1.2) (0.9) Excess tax benefits related to equity compensation (2.6) (4.4) (1.1) §162(m) compensation limitation 2.2 2.7 1.9 Net changes in valuation allowance (2.1) — (2.3) Other — 0.4 1.2 Provision for income taxes $ 36.3 $ 54.1 $ 53.4 The provision for income taxes was calculated based upon the following components of income from continuing operations before income taxes (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 2019 United States $ 85.2 $ 159.1 $ 174.8 Non-United States 69.5 77.2 64.0 Income before income taxes $ 154.7 $ 236.3 $ 238.8 Deferred Income Tax Assets and Liabilities Deferred income taxes consist of the tax effects of the following temporary differences (in millions): December 31, 2020 March 31, 2020 Deferred tax assets: Compensation and retirement benefits $ 57.4 $ 63.5 General accruals and reserves 11.4 8.7 Lease liabilities 38.7 27.7 State tax net operating loss and credit carryforwards 22.3 22.5 Federal and state capital loss carryforwards 18.2 18.2 Foreign net operating loss and interest carryforwards 3.4 5.2 Total deferred tax assets before valuation allowance 151.4 145.8 Valuation allowance (37.5) (39.4) Total deferred tax assets 113.9 106.4 Deferred tax liabilities: Property, plant and equipment 31.9 33.8 Lease ROU assets 37.7 26.2 Inventories 18.7 21.6 Intangible assets and goodwill 128.2 131.2 Other 3.6 1.0 Total deferred tax liabilities 220.1 213.8 Net deferred tax liabilities $ 106.2 $ 107.4 Net amount on Consolidated Balance Sheets consists of: Other assets $ 13.2 $ 13.6 Deferred income taxes (119.4) (121.0) Net long-term deferred tax liabilities $ (106.2) $ (107.4) Management has reviewed its deferred tax assets and has analyzed the uncertainty with respect to ultimately realizing the related tax benefits associated with such assets. Based upon this analysis, management has determined that a valuation allowance should be established for the federal and state capital loss carryforwards, state credit carryforwards, certain foreign NOL carryforwards and related deferred tax assets, as well as certain state NOL carryforwards as of December 31, 2020. Significant factors considered by management in this determination included the historical operating results of the Company, as well as anticipated reversals of future taxable temporary differences. Capital losses may generally only be used to offset available capital gains. Federal capital losses are allowed to be carried back three years and carried forward for five. The Company does not have any capital gains in the carryback period with which to offset any portion of the capital loss. States generally follow federal law with respect to capital losses; however, those that do have a modification, such modification (in most cases) is to deny any carryback period. The carryforward periods for the state NOLs range from five to twenty years. The state credit carryforwards expire over a period of 15 years. The majority of the foreign NOL carryforwards are generally subject to an indefinite expiration period, with the remaining being subject to either a five, nine or twenty-year expiration period. At December 31, 2020, the Company had approximately $457.7 million of state NOL carryforwards, expiring over various years ending through December 31, 2033. The Company has a valuation allowance of $16.0 million recorded against the related deferred tax asset. In addition, at December 31, 2020, the Company had approximately $15.5 million of foreign NOL carryforwards in which the majority of these losses can be carried forward indefinitely. There exists a valuation allowance of $1.8 million against the foreign NOL carryforwards as well as certain related deferred tax assets. Prior to the quarter ended March 31, 2020, the Company considered the earnings in all of our foreign subsidiaries as permanently reinvested; and as such, had not recorded deferred income taxes with respect to such earnings. However, in consideration of the challenging economic environment created by COVID-19 and in light of favorable changes incorporated in U.S. Tax Reform with respect to repatriation of foreign earnings, the Company had determined effective as of the fourth quarter ended March 31, 2020 that unremitted earnings existing in Germany, Italy, the Netherlands and the United Kingdom are no longer permanently reinvested. As a result of U.S. Tax Reform, unremitted earnings can generally be remitted to the U.S. without incurring additional U.S. federal income taxation. In addition, earnings repatriated from the jurisdictions noted above, based upon our current legal structure, can generally be repatriated without incurring any withholding tax liability. Accordingly, the Company has determined that the deferred tax liability associated with the repatriation of the current unremitted earnings of approximately $41.6 million from the applicable subsidiaries located in these tax jurisdictions would be minimal, if any. No provision has been made for United States federal income taxes related to approximately $117.8 million of the remaining undistributed earnings of foreign subsidiaries considered to be permanently reinvested. Due to U.S. Tax Reform, the additional income tax liability that would result if such earnings were repatriated to the U.S., other than potential out-of-pocket withholding taxes of approximately $6.6 million, would not be expected to be significant to the Company’s consolidated financial statements. The Company’s total liability for net accrued income taxes as of December 31, 2020 and March 31, 2020 was $4.7 million and $6.5 million, respectively. This net amount was presented in the consolidated balance sheets as Income taxes payable (separately disclosed in Other current liabilities) of $14.5 million and $9.9 million as of December 31, 2020 and March 31, 2020, respectively; and as Income taxes receivable presented in Other current assets in the consolidated balance sheets of $9.8 million and $3.4 million as of December 31, 2020 and March 31, 2020, respectively. Net cash paid for income taxes to governmental tax authorities for the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 was $44.9 million, $72.5 million and $64.7 million, respectively. Liability for Unrecognized Tax Benefits The Company's total liability for net unrecognized tax benefits as of December 31, 2020 and March 31, 2020 was $18.6 million and $14.8 million, respectively. The following table represents a reconciliation of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, for the nine months ended December 31, 2020 and fiscal year ended March 31, 2020 (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 Balance at beginning of period $ 13.6 $ 18.3 Additions based on tax positions related to the current year 2.0 1.5 Additions for tax positions of prior years 1.7 — Reductions for tax positions of prior years — — Settlements — (1.4) Reductions due to lapse of applicable statute of limitations (1.1) (4.5) Cumulative translation adjustment 1.1 (0.3) Balance at end of period $ 17.3 $ 13.6 The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of December 31, 2020 and March 31, 2020, the total amount of unrecognized tax benefits includes $1.6 million and $1.5 million of gross accrued interest and penalties, respectively. The amount of interest and penalties recorded as income tax expense (benefit) during the nine months ended December 31, 2020, and fiscal years ended March 31, 2020, and 2019 was $0.1 million, $(1.2) million, and $(1.0) million, respectively. The Company conducts business in multiple locations within and outside the U.S. Consequently, the Company is subject to periodic income tax examinations by domestic and foreign income tax authorities. Currently, the Company is undergoing routine, periodic income tax examinations in both domestic and foreign jurisdictions. During the three months ended June 30, 2020, the Internal Revenue Service (the “IRS”) completed an income tax examination of the Company’s U.S. consolidated federal income tax returns for the tax years ended March 31, 2016 and 2017. The Company paid approximately $1.5 million upon the conclusion of such examination, all of which was previously accrued in the Company’s financial statements. During the three months ended March 31, 2020, the German tax authorities concluded an examination of the corporate income and trade tax returns for the Company’s CENTA German subsidiary for the tax years ended December 31, 2014 through December 31, 2017. The conclusion of the tax examination resulted in additional tax liabilities of approximately $1.7 million, all of which was subject to indemnification under the terms of the applicable purchase agreement or otherwise appropriately accrued in the Company’s financial statements. During the three months ended March 31, 2020, the Italian tax authorities began conducting an income tax examination of the income tax return of one of the Company’s Italian subsidiaries for the tax year ended March 31, 2018. In addition, certain of the Company’s German subsidiaries are currently undergoing a corporate income and trade tax examination by the German tax authorities for the tax years or period ended March 31, 2015 through March 31, 2018. 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. VAG was notified by the German tax authorities of its intention to conduct an income tax examination of the VAG German entities’ corporate income and trade tax returns for the tax years ended March 31, 2014 through 2019. The Company anticipates the related fieldwork will begin during the three months ending March 31, 2021. During the three months ended September 30, 2018, the IRS completed an income tax examination of |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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. In early 2020, Rexnord Industries entered into an administrative order with the USEPA to do remediation work on its Downers Grove property. 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, including the costs of the remediation work pursuant to the 2020 administrative order, 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, 2020, Zurn and numerous other unrelated companies were defendants in approximately 6,000 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, 2020, 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 $59.0 million, of which Zurn expects its insurance carriers to pay approximately $42.0 million in the next ten years on such claims, with the balance of the estimated liability being paid in subsequent years. The $59.0 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 consolidated balance sheets. Management estimates that its available insurance to cover this potential asbestos liability as of December 31, 2020, is in excess of the ten year estimated exposure, and accordingly, believes that all current claims are covered by insurance. As of December 31, 2020, the Company had a recorded receivable from its insurance carriers of $59.0 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 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 was designed to resolve, on a national basis, the Company's overall exposure for both known and unknown claims related to the alleged failure or anticipated failure of such fittings, subject to the right of eligible class members to opt-out of the settlement and pursue their claims independently. The settlement utilized a seven year claims fund, which was capped at $20.0 million, and was funded in installments over the seven year period based on claim activity and minimum funding criteria. The seven year filing period expired on April 1, 2020. Any claims after April 1, 2020 are time barred. The Company expects to make payment on any remaining timely filed claims and close out the settlement fund. The Company has recorded an accrual for the balance of this liability. |
Public Offering and Common Stoc
Public Offering and Common Stock Repurchases | 9 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Public Offering and Common Stock Repurchases | Public Offering and Common Stock Repurchases Preferred Stock On December 7, 2016, the Company issued 8.1 million depositary shares, each of which represents a 1/20th interest in a share of Series A Preferred Stock, for an offering price of $50 per depositary share. The Company issued an aggregate of 402,500 shares of Series A Preferred Stock in connection therewith. During the year ended March 31, 2020, 402,500 shares of Series A Preferred Stock automatically converted into 16.0 million 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 years ended March 31, 2020 and 2019, the Company accrued $14.4 million and $23.2 million of dividends and paid $17.4 million and $23.2 million of dividends on the Series A Preferred Stock, respectively. Issuer Repurchases of Equity Securities During fiscal 2015, the Company's Board of Directors approved a common stock repurchase program (the "Repurchase Program") authorizing the repurchase of up to $200.0 million of the Company's common stock from time to time on the open market or in privately negotiated transactions. On January 27, 2020, the Company's Board of Directors approved to increase the remaining share repurchase authority under the Repurchase Program to $300.0 million. 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; however, the program will continue until the maximum amount of dollars authorized have been expended or until it is modified or terminated by the Board. During the nine months ended December 31, 2020, the Company repurchased 1.7 million shares of common stock at a total cost of $59.3 million at a weighted average price of $34.97 per share. During the year ended March 31, 2020, the Company repurchased 3.6 million shares of common stock at a total cost of $100.7 million at a weighted average price of $27.94 per share. The repurchased shares were canceled by the Company upon receipt. No shares of common stock were repurchased during the year ended March 31, 2019. |
Business Segment Information
Business Segment Information | 9 Months Ended |
Dec. 31, 2020 | |
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 TM . 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®, StainlessDrains.com TM , JUST® and Hadrian®. 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) Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Net sales by product Process & Motion Control: Original equipment manufacturers/ end-users $ 518.1 $ 766.8 $ 768.5 Maintenance, repair, and operations 352.3 591.4 612.1 Total Process & Motion Control 870.4 1,358.2 1,380.6 Water Management: Water safety, quality, flow control and conservation 527.4 661.0 624.4 Water infrastructure 35.3 49.1 45.9 Total Water Management 562.7 710.1 670.3 Consolidated net sales 1,433.1 2,068.3 2,050.9 Income (loss) from operations Process & Motion Control 108.3 228.4 226.1 Water Management 126.0 163.1 139.7 Corporate (45.9) (57.2) (60.2) Consolidated income from operations 188.4 334.3 305.6 Non-operating expense: Interest expense, net (36.6) (58.6) (69.9) Gain on the extinguishment of debt — 1.0 4.3 Actuarial (loss) gain on pension and postretirement benefit obligations (1.6) (36.6) 0.4 Other income (expense), net 4.5 (3.8) (1.6) Income from continuing operations before income taxes 154.7 236.3 238.8 Provision for income taxes (36.3) (54.1) (53.4) Equity method investment income 0.2 — 3.6 Net income from continuing operations 118.6 182.2 189.0 Loss from discontinued operations, net of tax — (1.8) (154.7) Net income 118.6 180.4 34.3 Non-controlling interest income 0.4 0.3 — Net income attributable to Rexnord 118.2 180.1 34.3 Dividends on preferred stock — (14.4) (23.2) Net income attributable to Rexnord common stockholders $ 118.2 $ 165.7 $ 11.1 Depreciation and Amortization Process & Motion Control $ 44.5 $ 59.6 $ 63.0 Water Management 22.2 26.5 24.9 Corporate 0.3 0.5 — Consolidated $ 67.0 $ 86.6 $ 87.9 Capital Expenditures Process & Motion Control $ 23.7 $ 34.6 $ 36.3 Water Management 4.6 6.8 6.2 Consolidated $ 28.3 $ 41.4 $ 42.5 December 31, 2020 March 31, 2020 March 31, 2019 Total Assets Process & Motion Control $ 2,627.2 $ 2,953.0 $ 2,677.7 Water Management 763.0 656.7 576.8 Corporate 10.9 17.4 5.2 Consolidated $ 3,401.1 $ 3,627.1 $ 3,259.7 Net sales to third parties and long-lived assets by geographic region are as follows (in millions): Net Sales Long-lived Assets Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 December 31, 2020 March 31, 2020 March 31, 2019 United States 995.3 1,472.7 1,460.6 $ 306.7 $ 264.7 $ 260.7 Europe 215.0 298.9 327.5 76.4 72.9 78.9 Rest of World 222.8 296.7 262.8 51.7 41.2 43.4 $ 1,433.1 $ 2,068.3 $ 2,050.9 $ 434.8 $ 378.8 $ 383.0 Net sales to third parties are attributed to the geographic regions based on the country in which the shipment originates. Amounts attributed to the geographic regions for long-lived assets are based on the location of the entity that holds such assets. In accordance with ASC 280, Segment Reporting , long-lived assets includes movable assets and excludes net intangible assets and goodwill. |
Quarterly Results of Operations
Quarterly Results of Operations (unaudited) | 9 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (unaudited) | Quarterly Results of Operations (unaudited) (in millions, except per share amounts) Nine Month Transition Period Ended December 31, 2020 Three Months Ended June 30, 2020 Three Months Ended September 30, 2020 Three Months Ended December 31, 2020 Total Net sales $ 449.1 $ 493.6 $ 490.4 $ 1,433.1 Gross profit 176.9 193.1 181.7 551.7 Net income from continuing operations 35.8 45.4 37.4 118.6 Net income 35.8 45.4 37.4 118.6 Non-controlling interest income 0.2 — 0.2 0.4 Net income attributable to Rexnord 35.6 45.4 37.2 118.2 Dividends on preferred stock — — — — Net income attributable to Rexnord common stockholders $ 35.6 $ 45.4 $ 37.2 $ 118.2 Basic net income per share attributable to Rexnord common stockholders Continuing operations $ 0.30 $ 0.38 $ 0.31 $ 0.98 Net income $ 0.30 $ 0.38 $ 0.31 $ 0.98 Diluted net income per share attributable to Rexnord common stockholders Continuing operations $ 0.29 $ 0.37 $ 0.30 $ 0.96 Net income $ 0.29 $ 0.37 $ 0.30 $ 0.96 Year Ended March 31, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Total Net sales $ 508.3 $ 521.3 $ 491.7 $ 547.0 $ 2,068.3 Gross profit 201.6 208.2 191.7 216.5 818.0 Net income from continuing operations 48.5 56.7 48.4 28.6 182.2 Loss from discontinued operations, net of tax (1.8) — — — (1.8) Net income 46.7 56.7 48.4 28.6 180.4 Non-controlling interest income (loss) 0.2 0.1 (0.1) 0.1 0.3 Net income attributable to Rexnord 46.5 56.6 48.5 28.5 180.1 Dividends on preferred stock (5.8) (5.8) (2.8) — (14.4) Net income attributable to Rexnord common stockholders $ 40.7 $ 50.8 $ 45.7 28.5 $ 165.7 Basic net income (loss) per share attributable to Rexnord common stockholders Continuing operations $ 0.40 $ 0.48 $ 0.40 $ 0.23 $ 1.50 Discontinued operations $ (0.02) $ — $ — $ — $ (0.02) Net income $ 0.39 $ 0.48 $ 0.40 $ 0.23 $ 1.48 Diluted net income (loss) per share attributable to Rexnord common stockholders Continuing operations $ 0.39 $ 0.46 $ 0.39 $ 0.23 $ 1.46 Discontinued operations $ (0.01) $ — $ — $ — $ (0.01) Net income $ 0.38 $ 0.46 $ 0.39 $ 0.23 $ 1.45 ______________________ |
Guarantor Subsidiaries
Guarantor Subsidiaries | 9 Months Ended |
Dec. 31, 2020 | |
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, 2020 and March 31, 2020, and for the nine-month period ended December 31, 2020, and the twelve-month periods ended March 31, 2020 and 2019, 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 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, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 0.5 $ 0.2 $ 46.7 $ 208.2 $ — $ 255.6 Receivables, net — — 165.5 109.3 — 274.8 Inventories — — 221.8 108.3 — 330.1 Income tax receivable — — 8.5 1.3 — 9.8 Other current assets — — 18.6 18.8 — 37.4 Total current assets 0.5 0.2 461.1 445.9 — 907.7 Property, plant and equipment, net — — 292.8 142.0 — 434.8 Intangible assets, net — — 403.0 121.6 — 524.6 Goodwill — — 1,050.3 319.8 — 1,370.1 Investment in: Issuer subsidiaries 1,552.6 — — — (1,552.6) — Guarantor subsidiaries — 3,532.2 — — (3,532.2) — Non-guarantor subsidiaries — — 691.8 — (691.8) — Other assets — 0.7 100.7 62.5 — 163.9 Total assets $ 1,553.1 $ 3,533.1 $ 2,999.7 $ 1,091.8 $ (5,776.6) $ 3,401.1 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 2.3 $ 0.1 $ — $ 2.4 Trade payables — — 72.2 57.2 — 129.4 Compensation and benefits — — 36.6 20.4 — 57.0 Current portion of pension and postretirement benefit obligations — — 1.7 1.4 — 3.1 Other current liabilities — 1.2 77.8 46.6 — 125.6 Total current liabilities — 1.2 190.6 125.7 — 317.5 Long-term debt — 1,117.8 70.7 0.7 — 1,189.2 Note payable to (receivable from) affiliates, net 113.1 861.5 (1,111.6) 137.0 — — Pension and postretirement benefit obligations — — 119.2 52.2 — 171.4 Deferred income taxes — — 96.8 22.6 — 119.4 Other liabilities 0.7 — 101.8 61.8 — 164.3 Total liabilities 113.8 1,980.5 (532.5) 400.0 — 1,961.8 Total stockholders' equity 1,439.3 1,552.6 3,532.2 691.8 (5,776.6) 1,439.3 Total liabilities and stockholders' equity $ 1,553.1 $ 3,533.1 $ 2,999.7 $ 1,091.8 $ (5,776.6) $ 3,401.1 Condensed Consolidating Balance Sheets March 31, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 11.0 $ 0.4 $ 383.9 $ 178.1 $ — $ 573.4 Receivables, net — — 223.5 111.2 — 334.7 Inventories — — 224.8 92.7 — 317.5 Other current assets — — 20.5 18.2 — 38.7 Total current assets 11.0 0.4 852.7 400.2 — 1,264.3 Property, plant and equipment, net — — 256.1 122.7 — 378.8 Intangible assets, net — — 424.8 89.4 — 514.2 Goodwill — — 1,043.6 278.3 — 1,321.9 Investment in: Issuer subsidiaries 1,381.1 — — — (1,381.1) — Guarantor subsidiaries — 3,324.9 — — (3,324.9) — Non-guarantor subsidiaries — — 621.1 — (621.1) — Other assets — — 88.7 59.2 — 147.9 Total assets $ 1,392.1 $ 3,325.3 $ 3,287.0 $ 949.8 $ (5,327.1) $ 3,627.1 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 75.4 $ 1.0 $ — $ 76.4 Trade payables — — 123.9 61.7 — 185.6 Compensation and benefits — — 42.4 19.4 — 61.8 Current portion of pension and postretirement benefit obligations — — 1.8 1.4 — 3.2 Other current liabilities — 7.9 79.9 40.7 — 128.5 Total current liabilities — 7.9 323.4 124.2 — 455.5 Long-term debt — 1,290.9 101.8 4.3 — 1,397.0 Note payable to (receivable from) affiliates, net 77.9 645.4 (795.9) 72.6 — — Pension and postretirement benefit obligations — — 142.8 46.8 — 189.6 Deferred income taxes — — 98.6 22.4 — 121.0 Other liabilities 0.5 — 91.4 58.4 — 150.3 Total liabilities 78.4 1,944.2 (37.9) 328.7 — 2,313.4 Total stockholders' equity 1,313.7 1,381.1 3,324.9 621.1 (5,327.1) 1,313.7 Total liabilities and stockholders' equity $ 1,392.1 $ 3,325.3 $ 3,287.0 $ 949.8 $ (5,327.1) $ 3,627.1 Condensed Consolidating Statements of Operations For the Nine Months Ended December 31, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,065.1 $ 489.4 $ (121.4) $ 1,433.1 Cost of sales — — 655.9 346.9 (121.4) 881.4 Gross profit — — 409.2 142.5 — 551.7 Selling, general and administrative expenses — — 249.8 71.9 — 321.7 Restructuring and other similar charges — — 8.0 6.6 — 14.6 Amortization of intangible assets — — 22.1 4.9 — 27.0 Income from operations — — 129.3 59.1 — 188.4 Non-operating (expense) income: Interest income (expense), net: To third parties — (32.9) (3.9) 0.2 — (36.6) To affiliates 28.9 28.6 (43.9) (13.6) — — Actuarial loss on pension and postretirement benefit obligations — — — (1.6) — (1.6) Other (expense) income, net — (0.3) 0.1 4.7 — 4.5 Income (loss) from continuing operations before income taxes 28.9 (4.6) 81.6 48.8 — 154.7 Provision for income taxes — — (15.9) (20.4) — (36.3) Equity method investment income — — — 0.2 — 0.2 Income (loss) before equity in income of subsidiaries 28.9 (4.6) 65.7 28.6 — 118.6 Equity in earnings of subsidiaries 89.7 94.3 28.6 — (212.6) — Net income from continuing operations 118.6 89.7 94.3 28.6 (212.6) 118.6 Loss from discontinued operations, net of tax — — — — — — Net income 118.6 89.7 94.3 28.6 (212.6) 118.6 Non-controlling interest income — — — 0.4 — 0.4 Net income attributable to Rexnord 118.6 89.7 94.3 28.2 (212.6) 118.2 Net income attributable to Rexnord common stockholders 118.6 89.7 94.3 28.2 (212.6) 118.2 Comprehensive income $ 118.6 $ 110.5 $ 106.9 $ 45.8 $ (212.6) $ 169.2 Condensed Consolidating Statements of Operations For the Year Ended March 31, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,568.4 $ 661.0 $ (161.1) $ 2,068.3 Cost of sales — — 944.7 466.7 (161.1) 1,250.3 Gross profit — — 623.7 194.3 — 818.0 Selling, general and administrative expenses — — 331.3 101.5 — 432.8 Restructuring and other similar charges — 8.8 6.7 — 15.5 Amortization of intangible assets — — 28.1 7.3 — 35.4 Income from operations — — 255.5 78.8 — 334.3 Non-operating (expense) income: Interest income (expense), net: To third parties — (56.7) (2.7) 0.8 — (58.6) To affiliates 10.3 41.3 (16.4) (35.2) — — (Loss) gain on the extinguishment of debt — (2.1) 3.3 (0.2) — 1.0 Actuarial loss on pension and postretirement benefit obligations — — (35.7) (0.9) — (36.6) Other income (expense), net — 0.1 (1.1) (2.8) — (3.8) Income (loss) from continuing operations before income taxes 10.3 (17.4) 202.9 40.5 — 236.3 Provision for income taxes — (0.5) (38.3) (15.3) — (54.1) Income (loss) before equity in income of subsidiaries 10.3 (17.9) 164.6 25.2 — 182.2 Equity in earnings of subsidiaries 170.1 188.0 23.4 — (381.5) — Net income from continuing operations 180.4 170.1 188.0 25.2 (381.5) 182.2 Loss from discontinued operations, net of tax — — — (1.8) — (1.8) Net income 180.4 170.1 188.0 23.4 (381.5) 180.4 Non-controlling interest income — — — 0.3 — 0.3 Net income attributable to Rexnord 180.4 170.1 188.0 23.1 (381.5) 180.1 Dividends on preferred stock (14.4) — — — — (14.4) Net income attributable to Rexnord common stockholders 166.0 170.1 188.0 23.1 (381.5) 165.7 Comprehensive income (loss) $ 180.4 $ 167.9 $ 186.3 $ (0.5) $ (381.5) $ 152.6 Condensed Consolidating Statements of Operations For the Year Ended March 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,565.0 $ 672.6 $ (186.7) $ 2,050.9 Cost of sales — — 977.1 475.7 (186.7) 1,266.1 Gross profit — — 587.9 196.9 — 784.8 Selling, general and administrative expenses — — 328.8 104.3 — 433.1 Restructuring and other similar charges — — 7.6 4.5 — 12.1 Amortization of intangible assets — — 27.5 6.5 — 34.0 Income from operations — — 224.0 81.6 — 305.6 Non-operating (expense) income: Interest income (expense), net: To third parties — (68.2) (2.0) 0.3 — (69.9) To affiliates 2.0 61.7 (53.2) (10.5) — — Loss (gain) on the extinguishment of debt — (0.7) 5.0 — — 4.3 Actuarial gain (loss) on pension and postretirement benefit obligations — — 1.0 (0.6) — 0.4 Other income (expense), net — 0.3 3.1 (5.0) — (1.6) Income (loss) from continuing operations before income taxes 2.0 (6.9) 177.9 65.8 — 238.8 Provision for income taxes — — (44.5) (8.9) — (53.4) Equity method investment income — — — 3.6 — 3.6 Income (loss) before equity in income of subsidiaries 2.0 (6.9) 133.4 60.5 — 189.0 Equity in earnings (loss) of subsidiaries 32.3 39.2 (51.9) — (19.6) — Net income from continuing operations 34.3 32.3 81.5 60.5 (19.6) 189.0 Loss from discontinued operations, net of tax — — (42.3) (112.4) — (154.7) Net income (loss) 34.3 32.3 39.2 (51.9) (19.6) 34.3 Non-controlling interest income — — — — — — Net income (loss) attributable to Rexnord 34.3 32.3 39.2 (51.9) (19.6) 34.3 Dividends on preferred stock (23.2) — — — — (23.2) Net income (loss) attributable to Rexnord common stockholders 11.1 32.3 39.2 (51.9) (19.6) 11.1 Comprehensive income (loss) $ 34.3 $ 22.5 $ 34.1 $ (59.5) $ (19.6) $ 11.8 Condensed Consolidating Statements of Cash Flows For the Nine Months Ended December 31, 2020 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by (used for) operating activities $ 68.7 $ 249.9 $ (151.3) $ 29.0 $ — $ 196.3 Investing activities Expenditures for property, plant and equipment — — (16.7) (11.6) — (28.3) Acquisitions, net of cash acquired — — (93.9) (8.1) — (102.0) Proceeds from dispositions of long-lived assets — — 0.6 7.2 — 7.8 Cash used for investing activities — — (110.0) (12.5) — (122.5) Financing activities Proceeds from borrowings of debt — — 6.0 — — 6.0 Repayments of debt — (250.0) (82.0) (4.4) — (336.4) Repurchase of common stock (59.3) — — — — (59.3) Payment of common stock dividends (28.8) — — — — (28.8) Proceeds from exercise of stock options 18.3 — — — — 18.3 Taxes withheld and paid on employees' share-based payment awards (9.4) — — — — (9.4) Cash used for financing activities (79.2) (250.0) (76.0) (4.4) — (409.6) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — 18.0 — 18.0 (Decrease) increase in cash, cash equivalents and restricted cash (10.5) (0.1) (337.3) 30.1 — (317.8) Cash, cash equivalents and restricted cash at beginning of period 11.0 0.3 384.0 178.1 — 573.4 Cash, cash equivalents and restricted cash at end of period $ 0.5 $ 0.2 $ 46.7 $ 208.2 $ — $ 255.6 Condensed Consolidating Statements of Cash Flows For the Year Ended March 31, 2020 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by (used for) operating activities $ 109.1 $ (149.2) $ 314.0 $ 24.7 $ — $ 298.6 Investing activities Expenditures for property, plant and equipment — — (30.0) (11.4) — (41.4) Acquisitions, net of cash acquired — — (84.2) (0.3) — (84.5) Proceeds from dispositions of long-lived assets — — 2.8 1.3 — 4.1 Net payments from divestiture of discontinued operations — — — (1.3) — (1.3) Cash used for investing activities — — (111.4) (11.7) — (123.1) Financing activities Proceeds from borrowings of debt — 975.0 75.0 — — 1,050.0 Repayments of debt — (825.7) (1.3) (8.6) — (835.6) Repurchase of common stock (100.7) — — — — (100.7) Payment of common stock dividends (9.8) — — — — (9.8) Payment of preferred stock dividends (17.4) — — — (17.4) Proceeds from exercise of stock options 36.0 — — — — 36.0 Taxes withheld and paid on employees' share-based payment awards (7.6) — — — — (7.6) Cash (used for) provided by financing activities (99.5) 149.3 73.7 (8.6) — 114.9 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — (9.5) — (9.5) Increase (decrease) in cash, cash equivalents and restricted cash 9.6 0.1 276.3 (5.1) — 280.9 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 $ 11.0 $ 0.3 $ 384.0 $ 178.1 $ — $ 573.4 Condensed Consolidating Statements of Cash Flows For the Year Ended March 31, 2019 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by operating activities $ 19.9 $ 75.2 $ 112.9 $ 50.1 $ — $ 258.1 Investing activities Expenditures for property, plant and equipment — — (33.0) (11.9) — (44.9) Acquisitions, net of cash acquired — — (2.0) (21.4) — (23.4) Proceeds from dispositions of long-lived assets — — 4.7 — — 4.7 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 — — (27.3) (26.0) — (53.3) Financing activities Proceeds from borrowings of debt — — 268.0 2.8 — 270.8 Repayments of debt — (75.0) (286.8) (7.2) — (369.0) Payment of preferred stock dividends (23.2) — — — — (23.2) Proceeds from exercise of stock options 7.9 — — — — 7.9 Taxes withheld and paid on employees' share-based payment awards (3.2) — — — — (3.2) Cash used for financing activities (18.5) (75.0) (18.8) (4.4) — (116.7) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — (13.2) — (13.2) Increase in cash, cash equivalents and restricted cash 1.4 0.2 66.8 6.5 — 74.9 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 $ 1.4 $ 0.2 $ 107.7 $ 183.2 $ — $ 292.5 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On February 4, 2021, the Company's Board of Directors declared a quarterly cash dividend on the Company's common stock of $0.09 per-share to be paid on March 8, 2021, to stockholders of record as of February 19, 2021. On February 16, 2021, the Company and Regal Beloit Corporation (“Regal”) announced that they have entered into definitive agreements whereby the Company will separate its Process & Motion Control (“PMC”) segment by way of a tax-free spin-off to the Company’s shareholders and then immediately combine it with Regal in a Reverse Morris Trust (“RMT”) transaction. Regal shareholders will own 61.4% and the Company’s shareholders 38.6% of the combined entity (“New Regal”), before a potential dividend to Regal shareholders and a corresponding ownership adjustment to the Company’s shareholders, sized at closing to ensure that RMT ownership requirements are met. This transaction is subject to regulatory approvals, Regal and Rexnord shareholder approvals, and customary closing conditions, and is expected to close in the fourth quarter of 2021. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 9 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts (in Millions) Additions Description Balance at Charged to Acquired Charged Deductions Balance at Year Ended March 31, 2019 Valuation allowance for trade and notes receivable 4.4 (1.3) 0.5 — (0.5) 3.1 Valuation allowance for income taxes 23.0 13.3 — 2.0 (5.9) 32.4 Year Ended March 31, 2020 Valuation allowance for trade and notes receivable 3.1 0.6 0.1 (0.1) (0.3) 3.4 Valuation allowance for income taxes 32.4 1.3 — 6.8 (1.1) 39.4 Nine Months Ended December 31, 2020 Valuation allowance for trade and notes receivable 3.4 0.4 — — (0.4) 3.4 Valuation allowance for income taxes 39.4 0.1 — 0.3 (2.3) 37.5 ______________________ (1) Uncollectible amounts, dispositions charged against the accrual and utilization of net operating losses. All other schedules have been omitted because they are not applicable or because the information required is included in the notes to the consolidated financial statements. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified to conform to presentation used for the Transition Period. |
Revenue Recognition | Revenue Recognition See Note 6, Revenue Recognition for the Company's policy for recognizing revenue under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606") as well as the various other disclosures required by ASC 606. 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. 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 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 consolidated statements of operations. |
Leases | LeasesThe Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement and determines whether it is an operating or financing lease. Operating and financing leases result in the Company recording a right-of-use ("ROU") asset, current lease liability, and long term lease liability on its balance sheet. 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 consolidated balance sheet and are instead recognized on a straight-line basis over the lease term. See Note 14, Leases, for additional discussion about the Company policy for the Company's policy for accounting leases and other required disclosures. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock based compensation in accordance with ASC 718, Accounting for Stock Compensation |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less to be cash and cash equivalents. |
Receivables | Receivables Receivables are stated net of allowances for doubtful accounts of $3.4 million at December 31, 2020, and $3.4 million at March 31, 2020. The Company assesses the collectability of customer receivables based on the credit worthiness of a customer as determined by credit checks and analysis, as well as the customer’s payment history. In determining the allowance for doubtful accounts, the Company also considers various factors including the aging of customer accounts and historical write-offs. In addition, the Company monitors other risk factors, including forward-looking information when establishing adequate allowances for doubtful accounts, which reflects the current estimate of credit losses expected to be incurred over the life of the receivables. Generally, advance payment is not required. Allowances for doubtful accounts established are recorded within Selling, general and administrative expenses within the consolidated statements of operations. |
Inventories | Inventories Inventories are comprised of material, direct labor and manufacturing overhead, and are stated at the lower of cost or market. Market is determined based on estimated net realizable values. The Company’s total inventories valued using the "last-in, first-out" (LIFO) method was 59% and 61% at December 31, 2020 and March 31, 2020, respectively. All remaining inventories are valued using the "first-in, first-out" (FIFO) method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are initially stated at cost. Depreciation is provided using the straight-line method over 10 to 30 years for buildings and improvements, 5 to 10 years for machinery and equipment and 3 to 5 years for computer hardware and software. Where appropriate, the depreciable lives of certain assets may be adjusted to reflect a change in the use of those assets, or depreciation may be accelerated in the case of an eventual asset disposal. The Company recognized accelerated depreciation of $0.8 million, $2.5 million, and $3.9 million during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019, respectively. Accelerated depreciation is recorded within Cost of sales in the consolidated statements of operations. Maintenance and repair costs are expensed as incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Intangible assets consist of acquired trademarks and tradenames, customer relationships (including distribution network) and patents. The customer relationships, patents, and certain tradenames are being amortized using the straight-line method over their estimated useful lives of 7 to 20 years, 3 to 14 years and 4 to 15 years, respectively. Where appropriate, the lives of certain intangible assets may be adjusted to reflect a change in the use of those assets, or amortization may be accelerated in the case of a known intangible asset discontinuation. Goodwill, trademarks and certain tradenames have indefinite lives and are not amortized. However, the goodwill and intangible assets are tested annually for impairment, and may be tested more frequently if any triggering events occur that would reduce the recoverability of the asset. The Company performs its impairment test by comparing the fair value of a reporting unit, utilizing both an income valuation model (discounted cash flow) and market approach (guideline public company comparables), with its carrying amount. If the carrying amount exceeds the fair value of the reporting unit, an impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit's fair value. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The carrying value of long-lived assets, including amortizable intangible assets and tangible fixed assets, are evaluated for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Impairment of amortizable intangible assets and tangible fixed assets is generally determined by comparing projected undiscounted cash flows to be generated by the asset, or group of assets, to its carrying value. If impairment is identified, a loss is recorded equal to the excess of the asset's net book value over its fair value, and the cost basis is adjusted accordingly. The Company recognized impairment charges of tangible fixed assets of $1.9 million, $0.0 million and $0.3 million during the during the nine months ended December 31, 2020 and the years ended March 31, 2020 and March 31, 2019, respectively. The impairments were determined utilizing Level 3 inputs within the Fair Value hierarchy, and the Company reviewed and considered input from outside specialists, when appropriate. Actual results could vary from these estimates. |
Product Warranty | Product Warranty The Company offers warranties on the sales of certain of its products and records an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimate of the level of future claims. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes (“ASC 740”) . Deferred income taxes are provided for future tax effects attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, net operating losses, tax credits and other applicable carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be actually paid or recovered. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of continuing operations in the period that includes the date of enactment. The Company regularly reviews its deferred tax assets for recoverability and provides a valuation allowance against its deferred tax assets if, based upon consideration of all positive and negative evidence, the Company determines that it is more-likely-than-not that a portion or all of the deferred tax assets will ultimately not be realized in future tax periods. Such positive and negative evidence would include review of historical earnings and losses, anticipated future earnings, the time period over which the temporary differences and carryforwards are anticipated to reverse and implementation of feasible, prudent tax planning strategies. The Company is subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining the Company’s worldwide provision for income taxes and recording the related deferred tax assets and liabilities. In the ordinary course of the Company’s business, there is inherent uncertainty in quantifying the ultimate tax outcome of all of the numerous transactions and required calculations relating to the Company’s tax positions. Accruals for unrecognized tax benefits are provided for in accordance with the requirements of ASC 740 . An unrecognized tax benefit |
Per Share Data | Per Share Data Basic net income per share from continuing and discontinued operations attributable to Rexnord common stockholders is computed by dividing net income from continuing operations and loss from discontinued operations attributable to Rexnord common stockholders, respectively, by the corresponding weighted average number of common shares outstanding for the period. Diluted net income (loss) per share from continuing and discontinued operations attributable to Rexnord common stockholders is computed based on the weighted average number of common shares outstanding, increased by the number of incremental shares that would have been outstanding if the potential dilutive shares were issued through the exercise of outstanding stock options to purchase common shares, except when the effect would be anti-dilutive. |
Derivative Financial Instruments | |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of subsidiaries operating outside of the United States with a functional currency other than the U.S. dollar are translated into U.S. dollars using exchange rates at the end of the respective period. Revenues and expenses of such entities are translated at average exchange rates in effect during the respective period. Foreign currency translation adjustments are included as a component of accumulated other comprehensive loss. The Company periodically enters into foreign currency forward contracts to mitigate foreign currency volatility on certain intercompany and external cash flows expected to occur. |
Advertising Costs | Advertising Costs Advertising costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred |
Research, Development and Engineering Costs | Research, Development and Engineering Costs Research, development and engineering costs are charged to selling, general and administrative expenses on the consolidated statements of operations as incurred |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and temporary investments, forward currency contracts and trade accounts receivable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in this update provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate that is expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments in this ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The Company did not modify any material contracts due to reference rate reform during the nine months ended December 31, 2020. The Company will continue to evaluate the impact this guidance will have on its consolidated financial statements for all future transactions affected by reference rate reform during the time permitted. In December 2019, the FASB issued 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. The Company will adopt this ASU on January 1, 2021 using a retrospective, modified retrospective or prospective basis for certain amendments, and does not expect there to be a material impact to the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments, which establishes 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. The Company adopted this ASU on April 1, 2020 using a modified-retrospective approach. There was no impact to the Company's 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 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in the Company’s product warranty liability during each of the periods presented (in millions): Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 Balance at beginning of period $ 6.7 $ 7.2 $ 7.7 Charged to operations 3.6 1.7 1.9 Claims settled (1.4) (2.2) (2.4) Balance at end of period $ 8.9 $ 6.7 $ 7.2 |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the basis for income per share computations (in millions, except share amounts, which are in thousands): Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Basic net income per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 118.6 $ 182.2 $ 189.0 Less: Non-controlling interest income 0.4 0.3 — Less: Dividends on preferred stock — 14.4 23.2 Net income from continuing operations attributable to Rexnord common stockholders $ 118.2 $ 167.5 $ 165.8 Loss from discontinued operations, net of tax $ — $ (1.8) $ (154.7) Net income attributable to Rexnord common stockholders $ 118.2 $ 165.7 $ 11.1 Denominator: Weighted-average common shares outstanding, basic 120,428 111,689 104,640 Diluted net income per share attributable to Rexnord common stockholders Numerator: Net income from continuing operations $ 118.6 $ 182.2 $ 189.0 Less: Non-controlling interest income 0.4 0.3 — Less: Dividends on preferred stock (1) — — — Net income from continuing operations attributable to Rexnord common stockholders $ 118.2 $ 181.9 $ 189.0 Loss from discontinued operations, net of tax $ — $ (1.8) $ (154.7) Net income attributable to Rexnord common stockholders 118.2 165.7 11.1 Plus: Dividends on preferred stock (1) — 14.4 23.2 Net income attributable to Rexnord common stockholders $ 118.2 $ 180.1 $ 34.3 Denominator: Weighted-average common shares outstanding, basic 120,428 111,689 104,640 Effect of dilutive equity awards 2,771 2,576 2,710 Preferred stock under the "if-converted" method (2) — 9,998 15,979 Weighted-average common shares outstanding, diluted 123,199 124,263 123,329 ____________________ (1) The "if-converted" method was dilutive for the years ended March 31, 2020 and 2019. (2) During the year ended March 31, 2020, the Company issued 16.0 million shares of common stock upon the mandatory conversion of Series A Preferred Stock; see Note 19, Common Stock Purchases and Public Offerings for additional information. |
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, for the nine months ending December 31, 2020 and years ending March 31, 2020 and 2019 are as follows (in millions): Foreign Currency Translation and Other Pension and Postretirement Plans Total Balance at March 31, 2018 $ (45.9) $ (28.2) $ (74.1) Other comprehensive loss before reclassifications (39.4) (8.5) (47.9) Amounts reclassified from accumulated other comprehensive income (loss) 26.0 (0.6) 25.4 Net current period other comprehensive loss (13.4) (9.1) (22.5) Balance at March 31, 2019 (59.3) (37.3) (96.6) Other comprehensive loss before reclassifications (24.5) (3.6) (28.1) Amounts reclassified from accumulated other comprehensive loss — 0.3 0.3 Net current period other comprehensive loss (24.5) (3.3) (27.8) Balance at March 31, 2020 (83.8) (40.6) (124.4) Other comprehensive income before reclassifications 37.8 13.0 50.8 Amounts reclassified from accumulated other comprehensive loss — (0.2) (0.2) Net current period other comprehensive income 37.8 12.8 50.6 Balance at December 31, 2020 $ (46.0) $ (27.8) $ (73.8) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the nine months ending December 31, 2020 and years ending March 31, 2020 and 2019 (in millions): Pension and postretirement plans Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 Income Statement Line Item Amortization of prior service credit $ (0.2) $ (0.3) $ (1.5) Other income (expense), net Lump sum settlement — 0.8 0.6 Actuarial (loss) gain on pension and postretirement benefit obligations Provision for income taxes — (0.2) 0.3 Total, net of income taxes $ (0.2) $ 0.3 $ (0.6) Foreign Currency Translation and Other Reclassification on sale of business $ — $ — $ 19.7 Loss from discontinued operations, net of tax Net realized losses on interest rate derivatives — — 5.7 Interest expense, net Reclassification on acquisition of equity method investment — — 1.8 Other (expense) income, net Benefit for income taxes — — (1.2) Total $ — $ — $ 26.0 |
Acquisitions and Divestiture (T
Acquisitions and Divestiture (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price for Business Combination | The final purchase price for this business combination is 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 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The major components of the Loss from discontinued operations, net of tax presented in the consolidated statements of operations during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 are included in the table below (in millions): Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 (2) Net sales $ — $ — $ 124.3 Cost of sales — — 94.9 Selling, general and administrative expenses — — 35.1 Amortization of intangible assets — — 0.3 Non-cash asset impairments (1) — — 126.0 Loss on sale of discontinued operations — 1.8 22.5 Other non-operating expenses, net — — 3.2 Loss from discontinued operations before income tax — (1.8) (157.7) Income tax benefit — — 3.0 Loss from discontinued operations, net of tax $ — $ (1.8) $ (154.7) ____________________ (1) The Company recorded non-cash impairments of $126.0 million during the year ended March 31, 2019 to reflect the Company's estimated fair value less costs to sell the VAG business based on the value of the preliminary bids received at that time. (2) Results of operations during the year ended March 31, 2019 reflect the period through November 26, 2018, the date on which the sale of the VAG business was completed. The consolidated statements of cash flows for the prior periods presented have not been adjusted to separately disclose cash flows related to discontinued operations. However, the significant investing cash flows and other significant non-cash operating items associated with the discontinued operations were as follows (in millions): Years Ended March 31, 2020 March 31, 2019 Depreciation $ — $ 4.1 Amortization of intangible assets — 0.3 Non-cash discontinued operations asset impairments — 126.0 Non-cash loss on sale of discontinued operations — 22.5 Capital expenditures — 2.4 Net (payments) proceeds from divestiture of discontinued operations (1.3) 9.0 |
Restructuring and Other Simil_2
Restructuring and Other Similar Charges (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the Company's restructuring and other similar costs incurred during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 by classification of operating segment (in millions): Nine Months Ended December 31, 2020 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 8.1 $ 1.6 $ 0.3 $ 10.0 Asset impairment charges (1) 1.9 — — 1.9 Contract termination and other associated costs 2.9 — (0.2) 2.7 Total restructuring and other similar costs $ 12.9 $ 1.6 $ 0.1 $ 14.6 Year Ended March 31, 2020 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 12.7 $ 0.5 $ 0.1 $ 13.3 Contract termination and other associated costs 1.6 0.5 0.1 2.2 Total restructuring and other similar costs $ 14.3 $ 1.0 $ 0.2 $ 15.5 Year Ended March 31, 2019 Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 5.6 $ 0.9 $ 0.6 $ 7.1 Asset impairment charges (1) 0.3 — — 0.3 Contract termination and other associated costs 2.0 0.3 2.4 4.7 Total restructuring and other similar costs $ 7.9 $ 1.2 $ 3.0 $ 12.1 Restructuring Costs To-date (Period from April 1, 2011 to December 31, 2020) Process & Motion Control Water Management Corporate Consolidated Employee termination benefits $ 75.3 $ 10.2 $ 3.0 $ 88.5 Asset impairment charges 5.5 — — 5.5 Contract termination and other associated costs 24.2 4.9 2.3 31.4 Total restructuring and other similar costs $ 105.0 $ 15.1 $ 5.3 $ 125.4 ____________________ |
Summary of Activity in Restructuring Accrual | The following table summarizes the activity in the Company's accrual for restructuring and other similar costs for the nine months ended December 31, 2020, and year ended March 31, 2020 (in millions): Employee termination benefits Asset impairment charges Contract termination and other associated costs Total Accrued Restructuring Costs, March 31, 2019 (2) $ 2.4 $ — $ 1.9 $ 4.3 Charges 13.3 — 2.2 15.5 Cash payments (7.4) — (2.6) (10.0) Accrued Restructuring Costs, March 31, 2020 (2) $ 8.3 $ — $ 1.5 $ 9.8 Charges 10.0 1.9 2.7 14.6 Cash payments (12.2) — (3.5) (15.7) Non-cash charges — (1.9) — (1.9) Accrued Restructuring Costs, December 31, 2020 (2) $ 6.1 $ — $ 0.7 $ 6.8 ____________________ |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | 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): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 March 31, 2019 Original equipment manufacturers/end users $ 518.1 $ 766.8 $ 768.5 Maintenance, repair, and operations 352.3 591.4 612.1 Total Process & Motion Control $ 870.4 $ 1,358.2 $ 1,380.6 Water safety, quality, flow control and conservation $ 527.4 $ 661.0 $ 624.4 Water infrastructure 35.3 49.1 45.9 Total Water Management $ 562.7 $ 710.1 $ 670.3 Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 Process & Motion Control Water Management Process & Motion Control Water Management Process & Motion Control Water Management United States and Canada $ 510.7 $ 550.2 $ 870.6 $ 694.1 $ 898.7 $ 654.5 Europe 215.0 — 298.9 — 327.5 — Rest of world 144.7 12.5 188.7 16.0 154.4 15.8 Total $ 870.4 $ 562.7 $ 1,358.2 $ 710.1 $ 1,380.6 $ 670.3 |
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, 2020 (in millions): Balance Sheet Classification March 31, 2020 Additions Deductions December 31, 2020 Contract Assets Receivables, net $ 0.5 $ 0.1 $ (0.5) $ 0.1 Contract Liabilities (1) Other current liabilities $ 7.3 $ 6.6 $ (9.9) $ 4.0 ____________________ |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventories | The major classes of inventories are summarized as follows (in millions): December 31, March 31, 2020 2020 Finished goods $ 164.6 $ 145.6 Work in progress 38.6 43.7 Purchased components 70.6 70.4 Raw materials 53.4 54.9 Inventories at First-in, First-Out ("FIFO") cost 327.2 314.6 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost 2.9 2.9 $ 330.1 $ 317.5 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, net is summarized as follows (in millions): December 31, March 31, 2020 2020 Land $ 28.3 $ 25.5 Buildings and improvements 288.8 231.5 Machinery and equipment 392.4 371.9 Hardware and software 47.3 43.1 Construction in-progress 31.8 26.4 788.6 698.4 Less accumulated depreciation (353.8) (319.6) $ 434.8 $ 378.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
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, 2020, and year ended March 31, 2020, by operating segment, consisted of the following (in millions): Goodwill Process & Motion Control Water Management Consolidated Net carrying amount as of March 31, 2019 $ 1,125.2 $ 174.5 $ 1,299.7 Acquisitions (1) — 26.5 26.5 Purchase accounting adjustments (1) 0.4 — 0.4 Currency translation adjustments (4.2) (0.5) (4.7) Net carrying amount as of March 31, 2020 $ 1,121.4 $ 200.5 $ 1,321.9 Acquisitions (1) — 42.8 42.8 Purchase accounting adjustments (1) — 0.8 0.8 Currency translation and other adjustments (2) 3.9 0.7 4.6 Net carrying amount as of December 31, 2020 $ 1,125.3 $ 244.8 $ 1,370.1 ______________________ (1) Refer to Note 3, Acquisitions and Divestiture for additional information regarding acquisitions. (2) Includes $1.8 million of goodwill allocated to the China gearbox product line within the Company's Process & Motion Control platform that was sold during the nine months ending December 31, 2020. See Note 3, Acquisitions and Divestiture for additional information regarding the disposal. |
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, 2020 and March 31, 2020 consisted of the following (in millions): December 31, 2020 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 52.0 $ (42.2) $ 9.8 Customer relationships (including distribution network) 14 years 784.9 (578.0) 206.9 Tradenames 13 years 44.1 (17.1) 27.0 Intangible assets not subject to amortization - trademarks and tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,161.9 $ (637.3) $ 524.6 March 31, 2020 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 51.1 $ (41.2) $ 9.9 Customer relationships (including distribution network) 13 years 748.0 (552.5) 195.5 Tradenames 13 years 42.1 (14.2) 27.9 Intangible assets not subject to amortization - trademarks and tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,122.1 $ (607.9) $ 514.2 |
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, 2020 and March 31, 2020 consisted of the following (in millions): December 31, 2020 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 52.0 $ (42.2) $ 9.8 Customer relationships (including distribution network) 14 years 784.9 (578.0) 206.9 Tradenames 13 years 44.1 (17.1) 27.0 Intangible assets not subject to amortization - trademarks and tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,161.9 $ (637.3) $ 524.6 March 31, 2020 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 10 years $ 51.1 $ (41.2) $ 9.9 Customer relationships (including distribution network) 13 years 748.0 (552.5) 195.5 Tradenames 13 years 42.1 (14.2) 27.9 Intangible assets not subject to amortization - trademarks and tradenames 280.9 — 280.9 Total intangible assets, net 13 years $ 1,122.1 $ (607.9) $ 514.2 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are summarized as follows (in millions): December 31, 2020 March 31, 2020 Contract liabilities $ 4.0 $ 7.3 Sales rebates 35.7 35.5 Commissions 5.9 7.0 Restructuring and other similar charges (1) 6.8 9.8 Product warranty (2) 8.9 6.7 Risk management (3) 10.5 10.4 Legal and environmental 2.4 1.5 Taxes, other than income taxes 7.7 8.3 Income taxes payable 14.5 9.9 Interest payable 1.4 8.3 Current portion of operating lease liability (4) 13.3 12.8 Other 14.5 11.0 $ 125.6 $ 128.5 ___________________ (1) See more information related to the restructuring obligations balance within Note 5, Restructuring and Other Similar Charges. (2) See more information related to the product warranty obligations balance within Note 2, Significant Accounting Policies. (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. (4) See more information related to leases within Note 14, Leases. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt is summarized as follows (in millions): December 31, 2020 March 31, 2020 Term loan (1) $ 621.5 $ 620.8 4.875% Senior Notes due 2025 (2) 496.3 495.7 Revolving credit facility (3) — 249.2 Securitization facility borrowings (4) — 74.9 Finance leases and other subsidiary debt (5) 73.8 32.8 Total 1,191.6 1,473.4 Less current maturities 2.4 76.4 Long-term debt $ 1,189.2 $ 1,397.0 ____________________ (1) Includes unamortized debt issuance costs of $3.5 million and $4.2 million at December 31, 2020 and March 31, 2020, respectively. (2) Includes unamortized debt issuance costs of $3.7 million and $4.3 million at December 31, 2020 and March 31, 2020, respectively. (3) Includes unamortized debt issuance costs of $0.8 million at March 31, 2020. (4) Includes unamortized debt issuance costs of $0.1 million at March 31, 2020. (5) See more information related to finance leases within Note 14, Leases. |
Schedule of Maturities of Long-Term Debt | Future maturities of debt and financing lease obligations as of December 31, 2020, excluding the unamortized debt issuance costs of $7.2 million, were as follows (in millions): Years ending December 31: 2021 $ 2.4 2022 2.4 2023 2.6 2024 627.8 2025 503.0 Thereafter 60.6 $ 1,198.8 |
Comparative Nine Month Financ_2
Comparative Nine Month Financial Information (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Income Statement | Consolidated Statements of Operations (in millions) Nine Months Ended December 31, 2020 December 31, 2019 (Unaudited) Net sales $ 1,433.1 $ 1,521.3 Cost of sales 881.4 919.8 Gross profit 551.7 601.5 Selling, general and administrative expenses 321.7 320.0 Restructuring and other similar charges 14.6 8.9 Amortization of intangible assets 27.0 26.3 Income from operations 188.4 246.3 Non-operating (expense) income: Interest expense, net (36.6) (45.2) Gain on the extinguishment of debt — 1.0 Actuarial loss on pension and postretirement benefit obligations (1.6) (0.8) Other income (expense), net 4.5 (0.2) Income from continuing operations before income taxes 154.7 201.1 Provision for income taxes (36.3) (47.7) Equity method investment income 0.2 0.2 Net income from continuing operations 118.6 153.6 Loss from discontinued operations, net of tax — (1.8) Net income 118.6 151.8 Non-controlling interest income 0.4 0.2 Net income attributable to Rexnord 118.2 151.6 Dividends on preferred stock — (14.4) Net income attributable to Rexnord common stockholders $ 118.2 $ 137.2 Basic net income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.98 $ 1.28 Discontinued operations $ — $ (0.02) Net income $ 0.98 $ 1.27 Diluted net income (loss) per share attributable to Rexnord common stockholders: Continuing operations $ 0.96 $ 1.24 Discontinued operations $ — $ (0.01) Net income $ 0.96 $ 1.22 Weighted-average number of common shares outstanding (in thousands): Basic 120,428 108,250 Effect of dilutive equity awards 2,771 15,560 Diluted 123,199 123,810 |
Condensed Cash Flow Statement | Consolidated Statements of Cash Flows (in millions) Nine Months Ended December 31, 2020 December 31, 2019 (Unaudited) Operating activities Net income $ 118.6 $ 151.8 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 40.0 38.0 Amortization of intangible assets 27.0 26.3 Gain on dispositions of property, plant and equipment (1.1) — Deferred income taxes (7.0) 4.9 Actuarial loss on pension and postretirement benefit obligations 1.6 0.8 Other non-cash charges (0.2) 0.5 Gain on extinguishment of debt — (1.0) Stock-based compensation expense 36.6 18.7 Changes in operating assets and liabilities: Receivables 65.1 34.4 Inventories 0.5 (34.4) Other assets 2.4 (18.2) Accounts payable (65.1) (12.4) Accruals and other (22.1) (34.7) Cash provided by operating activities 196.3 174.7 Investing activities Expenditures for property, plant and equipment (28.3) (25.5) Acquisitions, net of cash acquired (102.0) (25.1) Proceeds from dispositions of long-lived assets 7.8 2.9 Net payment from divestiture of discontinued operations — (1.3) Cash used for investing activities (122.5) (49.0) Financing activities Proceeds from borrowings of debt 6.0 725.0 Repayments of debt (336.4) (835.3) Repurchase of common stock (59.3) (20.0) Payment of common stock dividends (28.8) — Payment of preferred stock dividends — (17.4) Proceeds from exercise of stock options 18.3 16.8 Taxes withheld and paid on employees' share-based payment awards (9.4) (7.6) Cash used for financing activities (409.6) (138.5) Effect of exchange rate changes on cash, cash equivalents and restricted cash 18.0 (2.7) Decrease in cash, cash equivalents and restricted cash (317.8) (15.5) Cash, cash equivalents and restricted cash at beginning of period 573.4 292.5 Cash, cash equivalents and restricted cash at end of period $ 255.6 $ 277.0 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
ROU Assets and Lease Liability Recorded on Consolidated Balance Sheets | ROU assets and lease liability balances recorded on the consolidated balance sheets are summarized as follows (in millions): Leases Classification December 31, 2020 March 31, 2020 Assets: Operating ROU assets Other assets $ 71.3 $ 71.1 Finance ROU assets Property, plant and equipment, net (1) 71.5 27.3 Total ROU assets $ 142.8 $ 98.4 Liabilities: Current Operating Other current liabilities $ 13.3 $ 12.8 Finance Current maturities of debt 2.2 0.5 Non-current Operating Other liabilities 60.1 63.1 Finance Long-term debt 71.2 27.4 Total lease liabilities $ 146.8 $ 103.8 ____________________ |
Lease Costs | The components of lease expense reported in the consolidated statements of operations are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating lease expenses (1) $ 13.8 $ 15.0 Finance lease expenses: Depreciation of finance ROU assets (1) 2.4 1.0 Interest on lease liabilities (2) 2.4 1.6 Total finance lease expense 4.8 2.6 Variable and short-term lease expense (1) 4.0 4.4 Total lease expense $ 22.6 $ 22.0 ____________________ (1) Included in cost of sales and selling, general and administrative expenses. (2) Included in interest expense, net. Nine Months Ended Year Ended Lease Term and Discount Rate December 31, 2020 March 31, 2020 Weighted-average remaining lease terms (years): Operating leases 6.3 6.7 Finance leases 19.2 27.8 Weighted-average discount rate: Operating leases 4.8 % 4.6 % Finance leases 5.4 % 5.7 % Cash paid for amounts included in the measurement of lease liabilities are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating cash flows from operating leases $ 11.5 $ 14.4 Operating cash flows from finance leases 2.4 1.5 Financing cash flows from finance leases 1.1 0.4 ROU assets obtained in exchange for lease liabilities are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 Operating leases $ 5.1 $ 43.4 Finance leases 46.6 1.0 |
Future Minimum Lease Payments Under Finance Leases | Future minimum lease payments under operating and finance leases as of December 31, 2020 are as follows (in millions): Years ending December 31, Operating Leases (1) Finance Leases (1) 2021 16.1 6.1 2022 16.1 6.1 2023 13.2 6.3 2024 10.8 6.3 2025 7.1 6.3 Thereafter 24.5 88.5 Total future minimum lease payments 87.8 119.6 Less: Imputed interest (14.4) (46.2) Total lease liabilities $ 73.4 $ 73.4 ____________________ |
Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating and finance leases as of December 31, 2020 are as follows (in millions): Years ending December 31, Operating Leases (1) Finance Leases (1) 2021 16.1 6.1 2022 16.1 6.1 2023 13.2 6.3 2024 10.8 6.3 2025 7.1 6.3 Thereafter 24.5 88.5 Total future minimum lease payments 87.8 119.6 Less: Imputed interest (14.4) (46.2) Total lease liabilities $ 73.4 $ 73.4 ____________________ |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Fair Value of Options Granted | The fair value of each option granted under the Plan was estimated on the date of grant using the Black-Scholes valuation model that uses the following weighted-average assumptions: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Expected option term (in years) 6.5 6.5 6.5 Expected volatility factor 35 % 29 % 30 % Weighted-average risk free interest rate 0.48 % 2.27 % 2.85 % Expected dividend rate 1.3 % 0.0 % 0.0 % |
Schedule of Stock Options Activity | A summary of stock option activity during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019 is as follows: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Shares Weighted Avg. Exercise Price Number of shares under options: Outstanding at beginning of period 5,513,156 $ 22.28 7,843,911 $ 20.49 8,117,947 $ 19.50 Granted 197,565 25.54 154,934 27.50 564,666 28.88 Exercised (1) (1,780,068) 20.92 (2,398,363) 16.65 (642,953) 14.21 Canceled/Forfeited (67,831) 26.90 (87,326) 25.69 (195,749) 23.95 Outstanding at end of period (2) 3,862,822 $ 22.99 5,513,156 $ 22.28 7,843,911 $ 20.49 Exercisable at end of period (3) 3,450,079 $ 22.50 4,739,921 $ 21.61 5,833,565 $ 19.42 ______________________ (1) The total intrinsic value of options exercised during the nine months ended December 31, 2020, and years ended March 31, 2020 and 2019 was $19.9 million, $35.1 million and $9.9 million, respectively. (2) The weighted average remaining contractual life of options outstanding was 5.6 years at December 31, 2020, 5.4 years at March 31, 2020 and 5.5 years at March 31, 2019. The aggregate intrinsic value of options outstanding at December 31, 2020 was $63.7 million. (3) The weighted average remaining contractual life of options exercisable was 5.3 years at December 31, 2020, 4.9 years at March 31, 2020 and 4.6 years at March 31, 2019. The aggregate intrinsic value of options exercisable at December 31, 2020 was $58.6 million. Shares Weighted Avg. Exercise Price Nonvested options at beginning of period 773,235 $ 26.41 Granted 197,565 25.54 Vested (509,543) 25.41 Canceled/Forfeited (48,514) 27.25 Nonvested options at end of period 412,743 $ 27.13 |
Schedule of Restricted Stock Units Activity | A summary of RSU activity during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019 is as follows: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Nonvested RSUs at beginning of period 545,275 $ 27.54 417,347 $ 25.94 368,182 $ 21.55 Granted 430,646 25.56 422,707 27.52 300,119 28.87 Vested (287,696) 26.90 (253,831) 24.90 (149,531) 24.30 Canceled/Forfeited (40,557) 27.04 (40,948) 27.29 (101,423) 21.10 Nonvested RSUs at end of period 647,668 $ 26.54 545,275 $ 27.54 417,347 $ 25.94 |
Schedule of Nonvested Performance-based Units Activity | A summary of PSU activity during the nine months ended December 31, 2020 and years ended March 31, 2020 and 2019 is as follows: Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Units Weighted Avg. Grant Date Fair Value Nonvested PSUs at beginning of period 480,186 $ 28.01 351,104 $ 27.76 453,001 $ 25.53 Granted 547,374 25.52 324,619 27.50 183,069 28.91 Vested — — (169,748) 23.13 (217,319) 23.89 Canceled/Forfeited (4,575) 26.23 (25,789) 26.99 (67,647) 28.37 Nonvested PSUs at end of period 1,022,985 $ 26.68 480,186 $ 28.01 351,104 $ 27.76 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of Net Benefit Costs | The components of net periodic benefit cost reported in the consolidated statements of operations are as follows (in millions): Nine Months Ended Year Ended December 31, 2020 March 31, 2020 March 31, 2019 Pension Benefits: Service cost $ 0.4 $ 0.5 $ 0.5 Interest cost 13.9 21.9 23.6 Expected return on plan assets (13.9) (22.5) (24.8) Benefit cost associated with special events: Settlement (1) — 0.8 0.6 Recognition of actuarial losses 1.6 35.9 0.7 Net periodic benefit cost $ 2.0 $ 36.6 $ 0.6 Other Postretirement Benefits: Service cost $ — $ — $ — Interest cost 0.4 0.7 0.8 Amortization: Prior service credit (0.2) (0.3) (1.5) Recognition of actuarial gains — (0.1) (1.7) Net periodic benefit expense (income) $ 0.2 $ 0.3 $ (2.4) ______________________ (1) During the year ended March 31, 2019, the Company settled the benefits of a Canadian defined benefit pension plan through either a lump-sum transfer or the purchase of an annuity from an insurance company. As a result of the settlement, the Company performed a re-measurement of the plan assets and benefit obligations for the pension plan as at March 31, 2019, which resulted in the immediate recognition of a $0.6 million non-cash actuarial loss, which is recorded within Actuarial (loss) gain on pension and postretirement obligations in the consolidated statements of operations during the year ended March 31, 2019. |
Summary of the Plan's Status | The status of the plans is summarized as follows (in millions): Pension Benefits Other Postretirement Benefits Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Benefit obligation at beginning of period $ (623.2) $ (623.8) $ (16.1) $ (16.9) Service cost (0.4) (0.5) — — Interest cost (13.9) (21.9) (0.4) (0.7) Actuarial (losses) gains (44.2) (33.0) 0.2 (0.6) Benefits paid 29.0 54.0 1.2 2.4 Plan participant contributions — — (0.3) (0.3) Translation and other adjustments (9.4) 2.0 — — Benefit obligation at end of period $ (662.1) $ (623.2) $ (15.4) $ (16.1) Plan assets at the beginning of the period $ 446.9 $ 480.2 $ — $ — Actual return on plan assets 73.3 15.0 — — Contributions 7.9 6.6 1.3 2.4 Benefits paid (29.0) (54.0) (1.3) (2.4) Translation adjustment 4.4 (0.9) — — Plan assets at end of period $ 503.5 $ 446.9 $ — $ — Funded status of plans $ (158.6) $ (176.3) $ (15.4) $ (16.1) Net amount on Consolidated Balance Sheets consists of: Non-current assets $ 0.5 $ 0.4 $ — $ — Current liabilities (1.7) (1.6) (1.4) (1.6) Long-term liabilities (157.4) (175.1) (14.0) (14.5) Total net funded status $ (158.6) $ (176.3) $ (15.4) $ (16.1) |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized | Amounts included in accumulated other comprehensive loss (income), net of tax, related to defined benefit plans at December 31, 2020 and March 31, 2020 consist of the following (in millions): As of December 31, 2020 Pension Postretirement Total Unrecognized prior service credit $ (0.1) $ (0.9) $ (1.0) Unrecognized actuarial loss (gain) 40.0 (1.2) 38.8 Accumulated other comprehensive loss (income), gross 39.9 (2.1) 37.8 Deferred income tax (benefit) provision (10.5) 0.5 (10.0) Accumulated other comprehensive loss (income), net $ 29.4 $ (1.6) $ 27.8 As of March 31, 2020 Pension Postretirement Total Unrecognized prior service credit $ (0.1) $ (1.1) $ (1.2) Unrecognized actuarial loss (gain) 56.5 (1.1) 55.4 Accumulated other comprehensive loss (income), gross 56.4 (2.2) 54.2 Deferred income tax (benefit) provision (14.1) 0.5 (13.6) Accumulated other comprehensive loss (income), net $ 42.3 $ (1.7) $ 40.6 |
Schedule of Assumptions Used | The following table presents significant assumptions used to determine benefit obligations and net periodic benefit cost (income) in weighted-average percentages: Pension Benefits Other Postretirement Benefits December 31, 2020 March 31, 2020 March 31, 2019 December 31, 2020 March 31, 2020 March 31, 2019 Benefit Obligations: Discount rate 2.3 % 3.1 % 3.7 % 2.4 % 3.3 % 3.9 % Rate of compensation increase 3.0 % 3.0 % 2.9 % n/a n/a n/a Net Periodic Benefit Cost: Discount rate 3.1 % 3.7 % 3.7 % 3.3 % 3.9 % 4.0 % Rate of compensation increase 3.0 % 2.9 % 2.9 % n/a n/a n/a Expected return on plan assets 4.3 % 4.9 % 5.1 % n/a n/a n/a |
Schedule of Allocation of Plan Assets | The following table presents the Company’s target investment allocations for the nine months ended December 31, 2020 and actual investment allocations at December 31, 2020 and March 31, 2020. Plan Assets December 31, 2020 March 31, 2020 Investment Target Actual Actual Equity securities 20% - 30% 28% 27% 29% Debt securities (including cash and cash equivalents) 55% - 80% 64% 63% 61% Other 0% - 10% 8% 10% 10% ______________________ (1) The investment policy allocation represents the guidelines of the Company's pension plans based on the changes in the plans funded status. (2) The target allocations represent the weighted average target allocations for the Company's pension plans. |
Schedule of Fair Value of Pension Plan Assets | The fair values of the Company’s pension plan assets for both the U.S and non-U.S. plans at December 31, 2020 and March 31, 2020, by asset category are included in the table below (in millions). For additional information on the fair value hierarchy and the inputs used to measure fair value, see Note 13, Fair Value Measurements. As of December 31, 2020 Quoted Prices in Significant Other Significant Assets measured at net asset value Total Cash and cash equivalents $ 9.6 $ — $ — $ — $ 9.6 Investment funds Fixed income funds (2) — — — 313.8 313.8 U.S. equity funds (3) 12.9 — — 61.2 74.1 International equity funds (3) — — — 37.2 37.2 Balanced funds (3) — — — 6.8 6.8 Alternative investment funds (4) — — — 22.1 22.1 Insurance contracts — — 39.9 — 39.9 Total $ 22.5 $ — $ 39.9 $ 441.1 $ 503.5 As of March 31, 2020 Quoted Prices in Significant Other Significant Assets measured at net asset value Total Cash and cash equivalents $ 11.1 $ — $ — $ — $ 11.1 Investment funds Fixed income funds (2) — — — 272.4 272.4 U.S. equity funds (3) 11.7 — — 56.2 67.9 International equity funds (3) — — — 35.7 35.7 Balanced funds (3) — — — 5.6 5.6 Alternative investment funds (4) — — — 21.6 21.6 Insurance contracts — — 32.6 — 32.6 Total $ 22.8 $ — $ 32.6 $ 391.5 $ 446.9 ______________________ (1) Certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position. (2) The Company's fixed income mutual and commingled funds primarily include investments in U.S. government securities and corporate bonds. The commingled funds also include an insignificant portion of investments in asset-backed securities or partnerships. The mutual and commingled funds are primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. (3) The Company's equity mutual and commingled funds primarily include investments in U.S. and international common stock. The balanced mutual and commingled funds invest in a combination of fixed income and equity securities. The mutual and commingled funds are primarily valued using the net asset value, which reflects the plan's share of the fair value of the investments. (4) The Company's alternative investments include venture capital and partnership investments. Alternative investments are valued using the net asset value, which reflects the plan's share of the fair value of the investments. The Company is generally able to redeem investments at periodic times during the year with notice provided to the general partner. Fair Value as of December 31, 2020 Quoted Prices in Significant Other Significant Total Deferred compensation plan assets: Mutual funds (1) $ 1.0 $ — $ — $ 1.0 Corporate-owned life insurance policies (2) — 10.7 — 10.7 Total assets at fair value $ 1.0 $ 10.7 $ — $ 11.7 Deferred compensation liability at fair value (3): $ 11.9 $ — $ — $ 11.9 Fair Value as of March 31, 2020 Quoted Prices in Significant Other Significant Total Deferred compensation plan assets: Mutual funds (1) $ 1.7 $ — $ — $ 1.7 Corporate-owned life insurance policies (2) — 5.5 — 5.5 Total assets at fair value $ 1.7 $ 5.5 $ — $ 7.2 Deferred compensation liability at fair value (3): $ 7.4 $ — $ — $ 7.4 ______________________ (1) The Company has elected to use the fair value option for the mutual funds to better align the measurement of the assets with the measurement of the liability, which are measured using quoted prices of identical instruments in active markets and are categorized as Level 1. (2) The 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, and are categorized as Level 2. (3) The deferred compensation liability is measured at fair value based on the quoted prices of identical instruments to the investment vehicles selected by the participants. |
Summary of Changes in Fair Value, Level 3 | The table below sets forth a summary of changes in the fair value of the Level 3 investments for the years ended December 31, 2020 and March 31, 2020 (in millions): Insurance Ending balance, March 31, 2019 $ 29.9 Actual return on assets: Related to assets held at reporting date 2.7 Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, March 31, 2020 32.6 Actual return on assets: Related to assets held at reporting date 7.3 Related to assets sold during the period — Purchases, sales, issuances and settlements — Ending balance, December 31, 2020 $ 39.9 |
Schedule of Expected Benefit Payments | Expected benefit payments to be paid in each of the next five years and in the aggregate for the five years thereafter are as follows (in millions): Years Ending December 31: Pension Other 2021 $ 38.6 $ 1.4 2022 38.4 1.4 2023 38.7 1.3 2024 37.9 1.3 2025 37.4 1.2 2026 - 2030 179.3 4.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of the Provision (Benefit) For Income Taxes | The components of the provision for income taxes are as follows (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 2019 Current: United States $ 20.0 $ 31.3 $ 55.7 Non-United States 18.7 18.6 21.6 State and local 5.0 5.8 8.0 Total current 43.7 55.7 85.3 Deferred: United States (5.9) 1.0 (23.0) Non-United States 1.7 (3.3) (5.2) State and local (3.2) 0.7 (3.7) Total deferred (7.4) (1.6) (31.9) Provision for income taxes $ 36.3 $ 54.1 $ 53.4 |
U.S. Statutory Income Tax Rate Reconciliation | The provision for income taxes differs from the United States statutory income tax rate due to the following items (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 2019 Provision for income taxes at U.S. federal statutory income tax rate $ 32.5 $ 49.6 $ 50.1 State and local income taxes, net of federal benefit 2.9 5.2 5.3 Net effects of foreign rate differential 2.5 2.6 1.8 Net effects of foreign operations 2.5 2.6 1.6 Net effect to deferred taxes for changes in tax rates 0.5 (1.1) (2.6) Net effect to deferred taxes for U.S. Tax Reform — — 0.8 Net effect of U.S. Tax Reform transition tax — — (0.1) Net effects of GILTI inclusion (2.9) 6.4 6.5 Foreign derived intangible income deduction (1.0) (1.9) (1.8) Unrecognized tax benefits, net of federal benefit 2.5 (6.8) (7.0) Research and development credit (0.7) (1.2) (0.9) Excess tax benefits related to equity compensation (2.6) (4.4) (1.1) §162(m) compensation limitation 2.2 2.7 1.9 Net changes in valuation allowance (2.1) — (2.3) Other — 0.4 1.2 Provision for income taxes $ 36.3 $ 54.1 $ 53.4 |
Components of Income (Loss) Before Income Taxes | The provision for income taxes was calculated based upon the following components of income from continuing operations before income taxes (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 2019 United States $ 85.2 $ 159.1 $ 174.8 Non-United States 69.5 77.2 64.0 Income before income taxes $ 154.7 $ 236.3 $ 238.8 |
Schedule of Deferred Income Taxes | Deferred income taxes consist of the tax effects of the following temporary differences (in millions): December 31, 2020 March 31, 2020 Deferred tax assets: Compensation and retirement benefits $ 57.4 $ 63.5 General accruals and reserves 11.4 8.7 Lease liabilities 38.7 27.7 State tax net operating loss and credit carryforwards 22.3 22.5 Federal and state capital loss carryforwards 18.2 18.2 Foreign net operating loss and interest carryforwards 3.4 5.2 Total deferred tax assets before valuation allowance 151.4 145.8 Valuation allowance (37.5) (39.4) Total deferred tax assets 113.9 106.4 Deferred tax liabilities: Property, plant and equipment 31.9 33.8 Lease ROU assets 37.7 26.2 Inventories 18.7 21.6 Intangible assets and goodwill 128.2 131.2 Other 3.6 1.0 Total deferred tax liabilities 220.1 213.8 Net deferred tax liabilities $ 106.2 $ 107.4 Net amount on Consolidated Balance Sheets consists of: Other assets $ 13.2 $ 13.6 Deferred income taxes (119.4) (121.0) Net long-term deferred tax liabilities $ (106.2) $ (107.4) |
Reconciliation of Gross Unrecognized Tax Benefits | The following table represents a reconciliation of the beginning and ending amount of the gross unrecognized tax benefits, excluding interest and penalties, for the nine months ended December 31, 2020 and fiscal year ended March 31, 2020 (in millions): Nine Months Ended December 31, Year Ended March 31, 2020 2020 Balance at beginning of period $ 13.6 $ 18.3 Additions based on tax positions related to the current year 2.0 1.5 Additions for tax positions of prior years 1.7 — Reductions for tax positions of prior years — — Settlements — (1.4) Reductions due to lapse of applicable statute of limitations (1.1) (4.5) Cumulative translation adjustment 1.1 (0.3) Balance at end of period $ 17.3 $ 13.6 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Business Segment Information | Business Segment Information: (in Millions) Nine Months Ended Years Ended December 31, 2020 March 31, 2020 March 31, 2019 Net sales by product Process & Motion Control: Original equipment manufacturers/ end-users $ 518.1 $ 766.8 $ 768.5 Maintenance, repair, and operations 352.3 591.4 612.1 Total Process & Motion Control 870.4 1,358.2 1,380.6 Water Management: Water safety, quality, flow control and conservation 527.4 661.0 624.4 Water infrastructure 35.3 49.1 45.9 Total Water Management 562.7 710.1 670.3 Consolidated net sales 1,433.1 2,068.3 2,050.9 Income (loss) from operations Process & Motion Control 108.3 228.4 226.1 Water Management 126.0 163.1 139.7 Corporate (45.9) (57.2) (60.2) Consolidated income from operations 188.4 334.3 305.6 Non-operating expense: Interest expense, net (36.6) (58.6) (69.9) Gain on the extinguishment of debt — 1.0 4.3 Actuarial (loss) gain on pension and postretirement benefit obligations (1.6) (36.6) 0.4 Other income (expense), net 4.5 (3.8) (1.6) Income from continuing operations before income taxes 154.7 236.3 238.8 Provision for income taxes (36.3) (54.1) (53.4) Equity method investment income 0.2 — 3.6 Net income from continuing operations 118.6 182.2 189.0 Loss from discontinued operations, net of tax — (1.8) (154.7) Net income 118.6 180.4 34.3 Non-controlling interest income 0.4 0.3 — Net income attributable to Rexnord 118.2 180.1 34.3 Dividends on preferred stock — (14.4) (23.2) Net income attributable to Rexnord common stockholders $ 118.2 $ 165.7 $ 11.1 Depreciation and Amortization Process & Motion Control $ 44.5 $ 59.6 $ 63.0 Water Management 22.2 26.5 24.9 Corporate 0.3 0.5 — Consolidated $ 67.0 $ 86.6 $ 87.9 Capital Expenditures Process & Motion Control $ 23.7 $ 34.6 $ 36.3 Water Management 4.6 6.8 6.2 Consolidated $ 28.3 $ 41.4 $ 42.5 December 31, 2020 March 31, 2020 March 31, 2019 Total Assets Process & Motion Control $ 2,627.2 $ 2,953.0 $ 2,677.7 Water Management 763.0 656.7 576.8 Corporate 10.9 17.4 5.2 Consolidated $ 3,401.1 $ 3,627.1 $ 3,259.7 |
Summary of Net Sales and Long-Lived Assets | Net sales to third parties and long-lived assets by geographic region are as follows (in millions): Net Sales Long-lived Assets Nine Months Ended December 31, 2020 Year Ended March 31, 2020 Year Ended March 31, 2019 December 31, 2020 March 31, 2020 March 31, 2019 United States 995.3 1,472.7 1,460.6 $ 306.7 $ 264.7 $ 260.7 Europe 215.0 298.9 327.5 76.4 72.9 78.9 Rest of World 222.8 296.7 262.8 51.7 41.2 43.4 $ 1,433.1 $ 2,068.3 $ 2,050.9 $ 434.8 $ 378.8 $ 383.0 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (unaudited) (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Nine Month Transition Period Ended December 31, 2020 Three Months Ended June 30, 2020 Three Months Ended September 30, 2020 Three Months Ended December 31, 2020 Total Net sales $ 449.1 $ 493.6 $ 490.4 $ 1,433.1 Gross profit 176.9 193.1 181.7 551.7 Net income from continuing operations 35.8 45.4 37.4 118.6 Net income 35.8 45.4 37.4 118.6 Non-controlling interest income 0.2 — 0.2 0.4 Net income attributable to Rexnord 35.6 45.4 37.2 118.2 Dividends on preferred stock — — — — Net income attributable to Rexnord common stockholders $ 35.6 $ 45.4 $ 37.2 $ 118.2 Basic net income per share attributable to Rexnord common stockholders Continuing operations $ 0.30 $ 0.38 $ 0.31 $ 0.98 Net income $ 0.30 $ 0.38 $ 0.31 $ 0.98 Diluted net income per share attributable to Rexnord common stockholders Continuing operations $ 0.29 $ 0.37 $ 0.30 $ 0.96 Net income $ 0.29 $ 0.37 $ 0.30 $ 0.96 Year Ended March 31, 2020 First Quarter Second Quarter Third Quarter Fourth Quarter (1) Total Net sales $ 508.3 $ 521.3 $ 491.7 $ 547.0 $ 2,068.3 Gross profit 201.6 208.2 191.7 216.5 818.0 Net income from continuing operations 48.5 56.7 48.4 28.6 182.2 Loss from discontinued operations, net of tax (1.8) — — — (1.8) Net income 46.7 56.7 48.4 28.6 180.4 Non-controlling interest income (loss) 0.2 0.1 (0.1) 0.1 0.3 Net income attributable to Rexnord 46.5 56.6 48.5 28.5 180.1 Dividends on preferred stock (5.8) (5.8) (2.8) — (14.4) Net income attributable to Rexnord common stockholders $ 40.7 $ 50.8 $ 45.7 28.5 $ 165.7 Basic net income (loss) per share attributable to Rexnord common stockholders Continuing operations $ 0.40 $ 0.48 $ 0.40 $ 0.23 $ 1.50 Discontinued operations $ (0.02) $ — $ — $ — $ (0.02) Net income $ 0.39 $ 0.48 $ 0.40 $ 0.23 $ 1.48 Diluted net income (loss) per share attributable to Rexnord common stockholders Continuing operations $ 0.39 $ 0.46 $ 0.39 $ 0.23 $ 1.46 Discontinued operations $ (0.01) $ — $ — $ — $ (0.01) Net income $ 0.38 $ 0.46 $ 0.39 $ 0.23 $ 1.45 ______________________ |
Guarantor Subsidiaries (Tables)
Guarantor Subsidiaries (Tables) | 9 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | Condensed Consolidating Balance Sheets December 31, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 0.5 $ 0.2 $ 46.7 $ 208.2 $ — $ 255.6 Receivables, net — — 165.5 109.3 — 274.8 Inventories — — 221.8 108.3 — 330.1 Income tax receivable — — 8.5 1.3 — 9.8 Other current assets — — 18.6 18.8 — 37.4 Total current assets 0.5 0.2 461.1 445.9 — 907.7 Property, plant and equipment, net — — 292.8 142.0 — 434.8 Intangible assets, net — — 403.0 121.6 — 524.6 Goodwill — — 1,050.3 319.8 — 1,370.1 Investment in: Issuer subsidiaries 1,552.6 — — — (1,552.6) — Guarantor subsidiaries — 3,532.2 — — (3,532.2) — Non-guarantor subsidiaries — — 691.8 — (691.8) — Other assets — 0.7 100.7 62.5 — 163.9 Total assets $ 1,553.1 $ 3,533.1 $ 2,999.7 $ 1,091.8 $ (5,776.6) $ 3,401.1 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 2.3 $ 0.1 $ — $ 2.4 Trade payables — — 72.2 57.2 — 129.4 Compensation and benefits — — 36.6 20.4 — 57.0 Current portion of pension and postretirement benefit obligations — — 1.7 1.4 — 3.1 Other current liabilities — 1.2 77.8 46.6 — 125.6 Total current liabilities — 1.2 190.6 125.7 — 317.5 Long-term debt — 1,117.8 70.7 0.7 — 1,189.2 Note payable to (receivable from) affiliates, net 113.1 861.5 (1,111.6) 137.0 — — Pension and postretirement benefit obligations — — 119.2 52.2 — 171.4 Deferred income taxes — — 96.8 22.6 — 119.4 Other liabilities 0.7 — 101.8 61.8 — 164.3 Total liabilities 113.8 1,980.5 (532.5) 400.0 — 1,961.8 Total stockholders' equity 1,439.3 1,552.6 3,532.2 691.8 (5,776.6) 1,439.3 Total liabilities and stockholders' equity $ 1,553.1 $ 3,533.1 $ 2,999.7 $ 1,091.8 $ (5,776.6) $ 3,401.1 Condensed Consolidating Balance Sheets March 31, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 11.0 $ 0.4 $ 383.9 $ 178.1 $ — $ 573.4 Receivables, net — — 223.5 111.2 — 334.7 Inventories — — 224.8 92.7 — 317.5 Other current assets — — 20.5 18.2 — 38.7 Total current assets 11.0 0.4 852.7 400.2 — 1,264.3 Property, plant and equipment, net — — 256.1 122.7 — 378.8 Intangible assets, net — — 424.8 89.4 — 514.2 Goodwill — — 1,043.6 278.3 — 1,321.9 Investment in: Issuer subsidiaries 1,381.1 — — — (1,381.1) — Guarantor subsidiaries — 3,324.9 — — (3,324.9) — Non-guarantor subsidiaries — — 621.1 — (621.1) — Other assets — — 88.7 59.2 — 147.9 Total assets $ 1,392.1 $ 3,325.3 $ 3,287.0 $ 949.8 $ (5,327.1) $ 3,627.1 Liabilities and stockholders' equity Current liabilities: Current maturities of debt $ — $ — $ 75.4 $ 1.0 $ — $ 76.4 Trade payables — — 123.9 61.7 — 185.6 Compensation and benefits — — 42.4 19.4 — 61.8 Current portion of pension and postretirement benefit obligations — — 1.8 1.4 — 3.2 Other current liabilities — 7.9 79.9 40.7 — 128.5 Total current liabilities — 7.9 323.4 124.2 — 455.5 Long-term debt — 1,290.9 101.8 4.3 — 1,397.0 Note payable to (receivable from) affiliates, net 77.9 645.4 (795.9) 72.6 — — Pension and postretirement benefit obligations — — 142.8 46.8 — 189.6 Deferred income taxes — — 98.6 22.4 — 121.0 Other liabilities 0.5 — 91.4 58.4 — 150.3 Total liabilities 78.4 1,944.2 (37.9) 328.7 — 2,313.4 Total stockholders' equity 1,313.7 1,381.1 3,324.9 621.1 (5,327.1) 1,313.7 Total liabilities and stockholders' equity $ 1,392.1 $ 3,325.3 $ 3,287.0 $ 949.8 $ (5,327.1) $ 3,627.1 |
Condensed Income Statement | Condensed Consolidating Statements of Operations For the Nine Months Ended December 31, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,065.1 $ 489.4 $ (121.4) $ 1,433.1 Cost of sales — — 655.9 346.9 (121.4) 881.4 Gross profit — — 409.2 142.5 — 551.7 Selling, general and administrative expenses — — 249.8 71.9 — 321.7 Restructuring and other similar charges — — 8.0 6.6 — 14.6 Amortization of intangible assets — — 22.1 4.9 — 27.0 Income from operations — — 129.3 59.1 — 188.4 Non-operating (expense) income: Interest income (expense), net: To third parties — (32.9) (3.9) 0.2 — (36.6) To affiliates 28.9 28.6 (43.9) (13.6) — — Actuarial loss on pension and postretirement benefit obligations — — — (1.6) — (1.6) Other (expense) income, net — (0.3) 0.1 4.7 — 4.5 Income (loss) from continuing operations before income taxes 28.9 (4.6) 81.6 48.8 — 154.7 Provision for income taxes — — (15.9) (20.4) — (36.3) Equity method investment income — — — 0.2 — 0.2 Income (loss) before equity in income of subsidiaries 28.9 (4.6) 65.7 28.6 — 118.6 Equity in earnings of subsidiaries 89.7 94.3 28.6 — (212.6) — Net income from continuing operations 118.6 89.7 94.3 28.6 (212.6) 118.6 Loss from discontinued operations, net of tax — — — — — — Net income 118.6 89.7 94.3 28.6 (212.6) 118.6 Non-controlling interest income — — — 0.4 — 0.4 Net income attributable to Rexnord 118.6 89.7 94.3 28.2 (212.6) 118.2 Net income attributable to Rexnord common stockholders 118.6 89.7 94.3 28.2 (212.6) 118.2 Comprehensive income $ 118.6 $ 110.5 $ 106.9 $ 45.8 $ (212.6) $ 169.2 Condensed Consolidating Statements of Operations For the Year Ended March 31, 2020 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,568.4 $ 661.0 $ (161.1) $ 2,068.3 Cost of sales — — 944.7 466.7 (161.1) 1,250.3 Gross profit — — 623.7 194.3 — 818.0 Selling, general and administrative expenses — — 331.3 101.5 — 432.8 Restructuring and other similar charges — 8.8 6.7 — 15.5 Amortization of intangible assets — — 28.1 7.3 — 35.4 Income from operations — — 255.5 78.8 — 334.3 Non-operating (expense) income: Interest income (expense), net: To third parties — (56.7) (2.7) 0.8 — (58.6) To affiliates 10.3 41.3 (16.4) (35.2) — — (Loss) gain on the extinguishment of debt — (2.1) 3.3 (0.2) — 1.0 Actuarial loss on pension and postretirement benefit obligations — — (35.7) (0.9) — (36.6) Other income (expense), net — 0.1 (1.1) (2.8) — (3.8) Income (loss) from continuing operations before income taxes 10.3 (17.4) 202.9 40.5 — 236.3 Provision for income taxes — (0.5) (38.3) (15.3) — (54.1) Income (loss) before equity in income of subsidiaries 10.3 (17.9) 164.6 25.2 — 182.2 Equity in earnings of subsidiaries 170.1 188.0 23.4 — (381.5) — Net income from continuing operations 180.4 170.1 188.0 25.2 (381.5) 182.2 Loss from discontinued operations, net of tax — — — (1.8) — (1.8) Net income 180.4 170.1 188.0 23.4 (381.5) 180.4 Non-controlling interest income — — — 0.3 — 0.3 Net income attributable to Rexnord 180.4 170.1 188.0 23.1 (381.5) 180.1 Dividends on preferred stock (14.4) — — — — (14.4) Net income attributable to Rexnord common stockholders 166.0 170.1 188.0 23.1 (381.5) 165.7 Comprehensive income (loss) $ 180.4 $ 167.9 $ 186.3 $ (0.5) $ (381.5) $ 152.6 Condensed Consolidating Statements of Operations For the Year Ended March 31, 2019 (in millions) Parent Issuers Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ — $ — $ 1,565.0 $ 672.6 $ (186.7) $ 2,050.9 Cost of sales — — 977.1 475.7 (186.7) 1,266.1 Gross profit — — 587.9 196.9 — 784.8 Selling, general and administrative expenses — — 328.8 104.3 — 433.1 Restructuring and other similar charges — — 7.6 4.5 — 12.1 Amortization of intangible assets — — 27.5 6.5 — 34.0 Income from operations — — 224.0 81.6 — 305.6 Non-operating (expense) income: Interest income (expense), net: To third parties — (68.2) (2.0) 0.3 — (69.9) To affiliates 2.0 61.7 (53.2) (10.5) — — Loss (gain) on the extinguishment of debt — (0.7) 5.0 — — 4.3 Actuarial gain (loss) on pension and postretirement benefit obligations — — 1.0 (0.6) — 0.4 Other income (expense), net — 0.3 3.1 (5.0) — (1.6) Income (loss) from continuing operations before income taxes 2.0 (6.9) 177.9 65.8 — 238.8 Provision for income taxes — — (44.5) (8.9) — (53.4) Equity method investment income — — — 3.6 — 3.6 Income (loss) before equity in income of subsidiaries 2.0 (6.9) 133.4 60.5 — 189.0 Equity in earnings (loss) of subsidiaries 32.3 39.2 (51.9) — (19.6) — Net income from continuing operations 34.3 32.3 81.5 60.5 (19.6) 189.0 Loss from discontinued operations, net of tax — — (42.3) (112.4) — (154.7) Net income (loss) 34.3 32.3 39.2 (51.9) (19.6) 34.3 Non-controlling interest income — — — — — — Net income (loss) attributable to Rexnord 34.3 32.3 39.2 (51.9) (19.6) 34.3 Dividends on preferred stock (23.2) — — — — (23.2) Net income (loss) attributable to Rexnord common stockholders 11.1 32.3 39.2 (51.9) (19.6) 11.1 Comprehensive income (loss) $ 34.3 $ 22.5 $ 34.1 $ (59.5) $ (19.6) $ 11.8 |
Condensed Cash Flow Statement | Condensed Consolidating Statements of Cash Flows For the Nine Months Ended December 31, 2020 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by (used for) operating activities $ 68.7 $ 249.9 $ (151.3) $ 29.0 $ — $ 196.3 Investing activities Expenditures for property, plant and equipment — — (16.7) (11.6) — (28.3) Acquisitions, net of cash acquired — — (93.9) (8.1) — (102.0) Proceeds from dispositions of long-lived assets — — 0.6 7.2 — 7.8 Cash used for investing activities — — (110.0) (12.5) — (122.5) Financing activities Proceeds from borrowings of debt — — 6.0 — — 6.0 Repayments of debt — (250.0) (82.0) (4.4) — (336.4) Repurchase of common stock (59.3) — — — — (59.3) Payment of common stock dividends (28.8) — — — — (28.8) Proceeds from exercise of stock options 18.3 — — — — 18.3 Taxes withheld and paid on employees' share-based payment awards (9.4) — — — — (9.4) Cash used for financing activities (79.2) (250.0) (76.0) (4.4) — (409.6) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — 18.0 — 18.0 (Decrease) increase in cash, cash equivalents and restricted cash (10.5) (0.1) (337.3) 30.1 — (317.8) Cash, cash equivalents and restricted cash at beginning of period 11.0 0.3 384.0 178.1 — 573.4 Cash, cash equivalents and restricted cash at end of period $ 0.5 $ 0.2 $ 46.7 $ 208.2 $ — $ 255.6 Condensed Consolidating Statements of Cash Flows For the Year Ended March 31, 2020 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by (used for) operating activities $ 109.1 $ (149.2) $ 314.0 $ 24.7 $ — $ 298.6 Investing activities Expenditures for property, plant and equipment — — (30.0) (11.4) — (41.4) Acquisitions, net of cash acquired — — (84.2) (0.3) — (84.5) Proceeds from dispositions of long-lived assets — — 2.8 1.3 — 4.1 Net payments from divestiture of discontinued operations — — — (1.3) — (1.3) Cash used for investing activities — — (111.4) (11.7) — (123.1) Financing activities Proceeds from borrowings of debt — 975.0 75.0 — — 1,050.0 Repayments of debt — (825.7) (1.3) (8.6) — (835.6) Repurchase of common stock (100.7) — — — — (100.7) Payment of common stock dividends (9.8) — — — — (9.8) Payment of preferred stock dividends (17.4) — — — (17.4) Proceeds from exercise of stock options 36.0 — — — — 36.0 Taxes withheld and paid on employees' share-based payment awards (7.6) — — — — (7.6) Cash (used for) provided by financing activities (99.5) 149.3 73.7 (8.6) — 114.9 Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — (9.5) — (9.5) Increase (decrease) in cash, cash equivalents and restricted cash 9.6 0.1 276.3 (5.1) — 280.9 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 $ 11.0 $ 0.3 $ 384.0 $ 178.1 $ — $ 573.4 Condensed Consolidating Statements of Cash Flows For the Year Ended March 31, 2019 (in millions) Parent Issuer Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Operating activities Cash provided by operating activities $ 19.9 $ 75.2 $ 112.9 $ 50.1 $ — $ 258.1 Investing activities Expenditures for property, plant and equipment — — (33.0) (11.9) — (44.9) Acquisitions, net of cash acquired — — (2.0) (21.4) — (23.4) Proceeds from dispositions of long-lived assets — — 4.7 — — 4.7 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 — — (27.3) (26.0) — (53.3) Financing activities Proceeds from borrowings of debt — — 268.0 2.8 — 270.8 Repayments of debt — (75.0) (286.8) (7.2) — (369.0) Payment of preferred stock dividends (23.2) — — — — (23.2) Proceeds from exercise of stock options 7.9 — — — — 7.9 Taxes withheld and paid on employees' share-based payment awards (3.2) — — — — (3.2) Cash used for financing activities (18.5) (75.0) (18.8) (4.4) — (116.7) Effect of exchange rate changes on cash, cash equivalents and restricted cash — — — (13.2) — (13.2) Increase in cash, cash equivalents and restricted cash 1.4 0.2 66.8 6.5 — 74.9 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 $ 1.4 $ 0.2 $ 107.7 $ 183.2 $ — $ 292.5 |
Basis of Presentation and Des_2
Basis of Presentation and Description of Business - Narrative (Details) | 9 Months Ended |
Dec. 31, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating platforms | 2 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) - USD ($) shares in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended | 117 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||||
Allowance for doubtful accounts | $ 3.4 | $ 3.4 | $ 3.4 | |
Percentage of inventory valued using LIFO | 59.00% | 61.00% | 59.00% | |
Write-down of inventories | $ 5.9 | $ 4.6 | $ 3.1 | |
Accelerated depreciation | $ 0.8 | $ 2.5 | 3.9 | |
Goodwill and intangible assets useful life | 13 years | 13 years | ||
Impairment charges, long-lived assets | $ 14.6 | $ 15.5 | $ 12.1 | $ 125.4 |
Preferred stock under the if-converted method (in shares) | 0 | 9,998 | 15,979 | |
Antidilutive shares excluded from computation for diluted net income per share (in shares) | 500 | 900 | 1,000 | |
Currency translation gains (losses) | $ (5.3) | $ 3.9 | $ 1.9 | |
Advertising costs | 8 | $ 13.3 | 11.9 | |
Redeemable Convertible Preferred Stock | ||||
Property, Plant and Equipment [Line Items] | ||||
Preferred stock under the if-converted method (in shares) | 16,000 | |||
Facility Closing | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges, long-lived assets | $ 1.9 | $ 0 | $ 0.3 | $ 5.5 |
Customer relationships (including distribution network) | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 14 years | 13 years | ||
Patents | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 10 years | 10 years | ||
Tradenames | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 13 years | 13 years | ||
Minimum | Customer relationships (including distribution network) | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 7 years | |||
Minimum | Patents | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 3 years | |||
Minimum | Tradenames | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 4 years | |||
Minimum | Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 10 years | |||
Minimum | Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 5 years | |||
Minimum | Hardware and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 3 years | |||
Maximum | Customer relationships (including distribution network) | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 20 years | |||
Maximum | Patents | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 14 years | |||
Maximum | Tradenames | ||||
Property, Plant and Equipment [Line Items] | ||||
Goodwill and intangible assets useful life | 15 years | |||
Maximum | Buildings and improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 30 years | |||
Maximum | Machinery and equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 10 years | |||
Maximum | Hardware and software | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, plant and equipment useful life | 5 years |
Significant Accounting Polici_5
Significant Accounting Policies - Product Warranty (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of period | $ 6.7 | $ 7.2 | $ 7.7 |
Charged to operations | 3.6 | 1.7 | 1.9 |
Claims settled | (1.4) | (2.2) | (2.4) |
Balance at end of period | $ 8.9 | $ 6.7 | $ 7.2 |
Significant Accounting Polici_6
Significant Accounting Policies - Schedule of Per Share Data (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | |||||||||||
Net income from continuing operations | $ 37.4 | $ 45.4 | $ 35.8 | $ 28.6 | $ 48.4 | $ 56.7 | $ 48.5 | $ 118.6 | $ 153.6 | $ 182.2 | $ 189 |
Less: Non-controlling interest income | 0.2 | 0 | 0.2 | 0.1 | (0.1) | 0.1 | 0.2 | 0.4 | 0.2 | 0.3 | 0 |
Less: Dividends on preferred stock | 0 | 0 | 0 | 0 | 2.8 | 5.8 | 5.8 | 0 | 14.4 | 14.4 | 23.2 |
Net income from continuing operations attributable to Rexnord common stockholders | 118.2 | 167.5 | 165.8 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.8) | 0 | (1.8) | (1.8) | (154.7) | |||
Net income from continuing operations attributable to Rexnord common stockholders | 118.2 | 181.9 | 189 | ||||||||
Net income attributable to Rexnord common stockholders | $ 37.2 | $ 45.4 | $ 35.6 | $ 28.5 | $ 45.7 | $ 50.8 | $ 40.7 | 118.2 | $ 137.2 | 165.7 | 11.1 |
Plus: Dividends on preferred stock | 0 | 14.4 | 23.2 | ||||||||
Net income attributable to Rexnord common stockholders | $ 118.2 | $ 180.1 | $ 34.3 | ||||||||
Denominator: | |||||||||||
Weighted-average common shares outstanding, basic (in shares) | 120,428 | 108,250 | 111,689 | 104,640 | |||||||
Effect of dilutive common shares equivalents (in shares) | 2,771 | 2,576 | 2,710 | ||||||||
Preferred stock under the if-converted method (in shares) | 0 | 9,998 | 15,979 | ||||||||
Diluted (in shares) | 123,199 | 123,810 | 124,263 | 123,329 |
Significant Accounting Polici_7
Significant Accounting Policies - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,313.7 | $ 1,231 | $ 1,212.8 |
Ending balance | 1,439.3 | 1,313.7 | 1,231 |
Total | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (124.4) | (96.6) | (74.1) |
Other comprehensive (loss) income before reclassifications | 50.8 | (28.1) | (47.9) |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.2) | 0.3 | 25.4 |
Net current period other comprehensive loss | 50.6 | (27.8) | (22.5) |
Ending balance | (73.8) | (124.4) | (96.6) |
Foreign Currency Translation and Other | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (83.8) | (59.3) | (45.9) |
Other comprehensive (loss) income before reclassifications | 37.8 | (24.5) | (39.4) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 26 |
Net current period other comprehensive loss | 37.8 | (24.5) | (13.4) |
Ending balance | (46) | (83.8) | (59.3) |
Pension and Postretirement Plans | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Beginning balance | (40.6) | (37.3) | (28.2) |
Other comprehensive (loss) income before reclassifications | 13 | (3.6) | (8.5) |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.2) | 0.3 | (0.6) |
Net current period other comprehensive loss | 12.8 | (3.3) | (9.1) |
Ending balance | $ (27.8) | $ (40.6) | $ (37.3) |
Significant Accounting Polici_8
Significant Accounting Policies - Accumulated Other Comprehensive Loss Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Pension and postretirement plans | |||||||||||
Other income (expense), net | $ (4.5) | $ 0.2 | $ 3.8 | $ 1.6 | |||||||
Actuarial (loss) gain on pension and postretirement benefit obligations | $ (35.8) | (1.6) | (0.8) | (36.6) | 0.4 | ||||||
Provision for income taxes | 36.3 | 47.7 | 54.1 | 53.4 | |||||||
Net income | $ 37.4 | $ 45.4 | $ 35.8 | 28.6 | $ 48.4 | $ 56.7 | $ 46.7 | 118.6 | 151.8 | 180.4 | 34.3 |
Foreign Currency Translation and Other | |||||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | 1.8 | 0 | 1.8 | 1.8 | 154.7 | |||
Interest expense, net | 36.6 | 45.2 | 58.6 | 69.9 | |||||||
Benefit for income taxes | 36.3 | 47.7 | 54.1 | 53.4 | |||||||
Net income | $ 37.4 | $ 45.4 | $ 35.8 | $ 28.6 | $ 48.4 | $ 56.7 | $ 46.7 | 118.6 | $ 151.8 | 180.4 | 34.3 |
Amortization of prior service credit | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Pension and postretirement plans | |||||||||||
Other income (expense), net | 0.2 | 0.3 | 1.5 | ||||||||
Lump sum settlement | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Pension and postretirement plans | |||||||||||
Actuarial (loss) gain on pension and postretirement benefit obligations | 0 | 0.8 | 0.6 | ||||||||
Pension and postretirement plans | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Pension and postretirement plans | |||||||||||
Provision for income taxes | 0 | 0.2 | (0.3) | ||||||||
Net income | (0.2) | 0.3 | (0.6) | ||||||||
Foreign Currency Translation and Other | |||||||||||
Benefit for income taxes | 0 | 0.2 | (0.3) | ||||||||
Net income | (0.2) | 0.3 | (0.6) | ||||||||
Foreign Currency Translation and Other | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Pension and postretirement plans | |||||||||||
Other income (expense), net | 0 | 0 | 1.8 | ||||||||
Provision for income taxes | 0 | 0 | (1.2) | ||||||||
Net income | 0 | 0 | 26 | ||||||||
Foreign Currency Translation and Other | |||||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 19.7 | ||||||||
Interest expense, net | 0 | 0 | 5.7 | ||||||||
Benefit for income taxes | 0 | 0 | (1.2) | ||||||||
Net income | $ 0 | $ 0 | $ 26 |
Significant Accounting Polici_9
Significant Accounting Policies - Research, Development and Engineering Costs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Accounting Policies [Abstract] | |||
Research, development and engineering costs | $ 27.5 | $ 40.5 | $ 41.7 |
Acquisitions and Divestiture -
Acquisitions and Divestiture - Narrative (Details) - USD ($) $ in Millions | Dec. 11, 2020 | Nov. 24, 2020 | Oct. 01, 2020 | Jan. 28, 2020 | May 10, 2019 | Jan. 23, 2019 | Sep. 24, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jan. 22, 2019 |
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 1,370.1 | $ 1,321.9 | $ 1,299.7 | |||||||||
Cash paid, net of cash acquired | 102 | $ 25.1 | 84.5 | 23.4 | ||||||||
Purchase accounting adjustments | 0.8 | 0.4 | ||||||||||
Centa China | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Additional interest, percent | 47.50% | |||||||||||
Ownership interest, percent | 47.50% | |||||||||||
Process & Motion Control | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | 1,125.3 | 1,121.4 | 1,125.2 | |||||||||
Cash paid, net of cash acquired | 0.3 | |||||||||||
Purchase accounting adjustments | $ 0 | 0.4 | ||||||||||
Process & Motion Control | Centa China | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interest acquired | 30.00% | |||||||||||
Water Management | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 244.8 | 200.5 | $ 174.5 | |||||||||
Purchase accounting adjustments | 0.8 | 0 | ||||||||||
China Gearbox | Process & Motion Control | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill allocated | 1.8 | |||||||||||
China Gearbox | Process & Motion Control | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net payments from divestiture of discontinued operations | $ 5.8 | |||||||||||
Sold inventory, fixed assets and other intellectual property | 5 | |||||||||||
Goodwill allocated | $ 1.8 | |||||||||||
Gain on disposal | 0.8 | |||||||||||
Hadrian Manufacturing Inc. | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interest acquired | 100.00% | |||||||||||
Total cash purchase price | $ 101.7 | |||||||||||
Goodwill | 42.8 | |||||||||||
Tax deductible goodwill | 36.7 | |||||||||||
Other intangible assets | 32.4 | |||||||||||
Fixed assets | 17.1 | |||||||||||
Trade working capital | 10 | |||||||||||
Other net liabilities | 0.6 | |||||||||||
Hadrian Manufacturing Inc. | Tradenames | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other intangible assets | 0.8 | |||||||||||
Hadrian Manufacturing Inc. | Customer Relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other intangible assets | $ 31.6 | |||||||||||
Process & Motion Control Joint Venture | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Cash paid, net of cash acquired | $ 0.3 | $ 0.3 | ||||||||||
Just Manufacturing Company | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total cash purchase price | $ 59.4 | |||||||||||
Purchase accounting adjustments | 0.8 | |||||||||||
East Creek Corporation | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Tax deductible goodwill | 27.3 | |||||||||||
Other intangible assets | 40.9 | |||||||||||
Fixed assets | 8.4 | |||||||||||
Trade working capital | 9.1 | |||||||||||
Other net liabilities | 1.5 | |||||||||||
Cash paid, net of cash acquired | $ 24.8 | |||||||||||
Purchase accounting adjustments | (1.2) | |||||||||||
East Creek Corporation | Tradenames | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other intangible assets | 2.2 | |||||||||||
East Creek Corporation | Customer Relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other intangible assets | $ 38.7 | |||||||||||
Asset Acquisition 2018, Design And Distribution Assets | Water Management | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total cash purchase price | $ 2 | |||||||||||
Centa China | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Total cash purchase price | $ 45.7 | |||||||||||
Goodwill | 20.5 | |||||||||||
Other intangible assets | 20.1 | |||||||||||
Trade working capital | 7.1 | |||||||||||
Other net liabilities | 2 | |||||||||||
Cash paid, net of cash acquired | 21.4 | |||||||||||
Gain recognized from step acquisition | 0.2 | |||||||||||
Reclassification of foreign currency translation adjustments upon sale of business | 1.8 | |||||||||||
Centa China | Tradenames | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other intangible assets | 1.3 | |||||||||||
Centa China | Customer Relationships | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Other intangible assets | $ 18.8 |
Acquisitions and Divestiture _2
Acquisitions and Divestiture - Schedule of Preliminary Purchase Price (Details) - USD ($) $ in Millions | Jan. 23, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Fair value of consideration transferred: | |||||
Cash paid, net of cash acquired | $ 102 | $ 25.1 | $ 84.5 | $ 23.4 | |
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 | ||||
Fair value of remaining non-controlling interest | 2.3 | ||||
Total | $ 45.7 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (1.8) | $ 0 | $ (1.8) | $ (1.8) | $ (154.7) |
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 | (1.8) | $ (154.7) | |||||
Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss from discontinued operations, net of tax | $ 0 | $ (1.8) |
Discontinued Operations - Loss
Discontinued Operations - Loss From Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ (1.8) | $ 0 | $ (1.8) | $ (1.8) | $ (154.7) |
Discontinued Operations, Held-for-sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Net sales | 0 | 0 | 124.3 | |||||
Cost of sales | 0 | 0 | 94.9 | |||||
Selling, general and administrative expenses | 0 | 0 | 35.1 | |||||
Amortization of intangible assets | 0 | 0 | 0.3 | |||||
Non-cash asset impairments | 0 | 0 | 126 | |||||
Loss on sale of discontinued operations | 0 | 1.8 | 22.5 | |||||
Other non-operating expenses, net | 0 | 0 | 3.2 | |||||
Loss from discontinued operations before income tax | 0 | (1.8) | (157.7) | |||||
Income tax benefit | 0 | 0 | 3 | |||||
Loss from discontinued operations, net of tax | $ 0 | $ (1.8) | $ (154.7) |
Discontinued Operations - Other
Discontinued Operations - Other Significant Operating Non-Cash Items (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net (payment) proceeds from divestiture of discontinued operations | $ 0 | $ (1.3) | $ (1.3) | $ 9 |
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Depreciation | 0 | 4.1 | ||
Amortization of intangible assets | 0 | 0.3 | ||
Non-cash asset impairment | $ 0 | 0 | 126 | |
Non-cash loss on sale of discontinued operations | 0 | 22.5 | ||
Capital expenditures | 0 | 2.4 | ||
Net (payment) proceeds from divestiture of discontinued operations | $ (1.3) | $ 9 |
Restructuring and Other Simil_3
Restructuring and Other Similar Charges - By Operating Segment (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | 117 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | $ 14.6 | $ 15.5 | $ 12.1 | $ 125.4 |
Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 10 | 13.3 | 7.1 | 88.5 |
Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 1.9 | 0 | 0.3 | 5.5 |
Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 2.7 | 2.2 | 4.7 | 31.4 |
Operating Segments | Process & Motion Control | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 12.9 | 14.3 | 7.9 | 105 |
Operating Segments | Process & Motion Control | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 8.1 | 12.7 | 5.6 | 75.3 |
Operating Segments | Process & Motion Control | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 1.9 | 0.3 | 5.5 | |
Operating Segments | Process & Motion Control | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 2.9 | 1.6 | 2 | 24.2 |
Operating Segments | Water Management | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 1.6 | 1 | 1.2 | 15.1 |
Operating Segments | Water Management | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 1.6 | 0.5 | 0.9 | 10.2 |
Operating Segments | Water Management | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0 | 0 | 0 | |
Operating Segments | Water Management | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0 | 0.5 | 0.3 | 4.9 |
Corporate | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0.1 | 0.2 | 3 | 5.3 |
Corporate | Employee termination benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0.3 | 0.1 | 0.6 | 3 |
Corporate | Asset impairment charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | 0 | 0 | 0 | |
Corporate | Contract termination and other associated costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total restructuring and other similar costs | $ (0.2) | $ 0.1 | $ 2.4 | $ 2.3 |
Restructuring and Other Simil_4
Restructuring and Other Similar Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | 117 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | $ 9.8 | $ 4.3 | ||
Charges | 14.6 | 15.5 | $ 12.1 | $ 125.4 |
Cash payments | (15.7) | (10) | ||
Non-cash charges | (1.9) | |||
Accrued Restructuring Costs, End of Period | 6.8 | 9.8 | 4.3 | 6.8 |
Employee termination benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | 8.3 | 2.4 | ||
Charges | 10 | 13.3 | 7.1 | 88.5 |
Cash payments | (12.2) | (7.4) | ||
Non-cash charges | 0 | |||
Accrued Restructuring Costs, End of Period | 6.1 | 8.3 | 2.4 | 6.1 |
Asset impairment charges | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | 0 | 0 | ||
Charges | 1.9 | 0 | ||
Cash payments | 0 | 0 | ||
Non-cash charges | (1.9) | |||
Accrued Restructuring Costs, End of Period | 0 | 0 | 0 | 0 |
Contract termination and other associated costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Accrued Restructuring Costs, Beginning of Period | 1.5 | 1.9 | ||
Charges | 2.7 | 2.2 | 4.7 | 31.4 |
Cash payments | (3.5) | (2.6) | ||
Non-cash charges | 0 | |||
Accrued Restructuring Costs, End of Period | $ 0.7 | $ 1.5 | $ 1.9 | $ 0.7 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020USD ($)segment | Mar. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of business segments | segment | 2 | |
Performance obligations expected to be satisfied | $ 331,400,000 | $ 380,700,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Impairment loss recognized | $ 0 | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of remaining performance obligation | 91.00% | |
Percentage of remaining performance obligation, expected timing | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of remaining performance obligation | 9.00% | |
Percentage of remaining performance obligation, expected timing | 1 year |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated by Customer Type (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total | $ 490.4 | $ 493.6 | $ 449.1 | $ 547 | $ 491.7 | $ 521.3 | $ 508.3 | $ 1,433.1 | $ 1,521.3 | $ 2,068.3 | $ 2,050.9 |
Process & Motion Control | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 870.4 | 1,358.2 | 1,380.6 | ||||||||
Process & Motion Control | Original equipment manufacturers/ end-users | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 518.1 | 766.8 | 768.5 | ||||||||
Process & Motion Control | Maintenance, repair, and operations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 352.3 | 591.4 | 612.1 | ||||||||
Water Management | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 562.7 | 710.1 | 670.3 | ||||||||
Water Management | Water safety, quality, flow control and conservation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 527.4 | 661 | 624.4 | ||||||||
Water Management | Water infrastructure | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | $ 35.3 | $ 49.1 | $ 45.9 |
Revenue Recognition - Revenue_2
Revenue Recognition - Revenue Disaggregated by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total | $ 490.4 | $ 493.6 | $ 449.1 | $ 547 | $ 491.7 | $ 521.3 | $ 508.3 | $ 1,433.1 | $ 1,521.3 | $ 2,068.3 | $ 2,050.9 |
Process & Motion Control | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 870.4 | 1,358.2 | 1,380.6 | ||||||||
Process & Motion Control | United States and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 510.7 | 870.6 | 898.7 | ||||||||
Process & Motion Control | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 215 | 298.9 | 327.5 | ||||||||
Process & Motion Control | Rest of world | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 144.7 | 188.7 | 154.4 | ||||||||
Water Management | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 562.7 | 710.1 | 670.3 | ||||||||
Water Management | United States and Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 550.2 | 694.1 | 654.5 | ||||||||
Water Management | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | 0 | 0 | 0 | ||||||||
Water Management | Rest of world | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total | $ 12.5 | $ 16 | $ 15.8 |
Revenue Recognition - Change in
Revenue Recognition - Change in Contract with Customer, Asset and Liability (Details) $ in Millions | 9 Months Ended |
Dec. 31, 2020USD ($) | |
Contract Assets | |
Contract assets, beginning balance | $ 0.5 |
Contract assets, additions | 0.1 |
Contract assets, deductions | (0.5) |
Contract assets, ending balance | 0.1 |
Contract Liabilities | |
Contract liabilities, beginning balance | 7.3 |
Contract liabilities, additions | 6.6 |
Contract liabilities, deductions | (9.9) |
Contract liabilities, ending balance | $ 4 |
Inventories - By Category (Deta
Inventories - By Category (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 164.6 | $ 145.6 |
Work in progress | 38.6 | 43.7 |
Purchased components | 70.6 | 70.4 |
Raw materials | 53.4 | 54.9 |
Inventories at First-in, First-Out ("FIFO") cost | 327.2 | 314.6 |
Adjustment to state inventories at Last-in, First-Out ("LIFO") cost | 2.9 | 2.9 |
Inventories, net | $ 330.1 | $ 317.5 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 788.6 | $ 698.4 |
Less accumulated depreciation | (353.8) | (319.6) |
Property, plant and equipment, net | 434.8 | 378.8 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 28.3 | 25.5 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 288.8 | 231.5 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 392.4 | 371.9 |
Hardware and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 47.3 | 43.1 |
Construction in-progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 31.8 | $ 26.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Changes (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 1,370.1 | $ 1,321.9 | $ 1,299.7 |
Acquisitions | 42.8 | 26.5 | |
Purchase accounting adjustments | 0.8 | 0.4 | |
Currency translation adjustment and other | 4.6 | (4.7) | |
Net carrying amount, end of period | 1,370.1 | 1,321.9 | |
Process & Motion Control | |||
Goodwill [Roll Forward] | |||
Goodwill | 1,125.3 | 1,121.4 | 1,125.2 |
Acquisitions | 0 | 0 | |
Purchase accounting adjustments | 0 | 0.4 | |
Currency translation adjustment and other | 3.9 | (4.2) | |
Net carrying amount, end of period | 1,125.3 | 1,121.4 | |
Process & Motion Control | China Gearbox | |||
Goodwill [Roll Forward] | |||
Goodwill allocated | 1.8 | ||
Water Management | |||
Goodwill [Roll Forward] | |||
Goodwill | 244.8 | 200.5 | $ 174.5 |
Acquisitions | 42.8 | 26.5 | |
Purchase accounting adjustments | 0.8 | 0 | |
Currency translation adjustment and other | 0.7 | (0.5) | |
Net carrying amount, end of period | $ 244.8 | $ 200.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Cumulative goodwill impairment charges | $ 436,400,000 | $ 436,400,000 | $ 434,600,000 | ||
Amortization of intangible assets | 27,000,000 | $ 26,300,000 | $ 35,400,000 | $ 34,000,000 | |
Future amortization expense | |||||
Expected amortization expense, 2021 | 36,700,000 | 36,700,000 | |||
Expected amortization expense, 2022 | 21,000,000 | 21,000,000 | |||
Expected amortization expense, 2023 | 18,500,000 | 18,500,000 | |||
Expected amortization expense, 2024 | 18,400,000 | 18,400,000 | |||
Expected amortization expense, 2025 | 17,300,000 | $ 17,300,000 | |||
Goodwill and intangible asset impairment | $ 0 | ||||
Tradenames | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted-average useful life of intangible assets acquired | 5 years | 14 years | |||
Customer relationships (including distribution network) | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted-average useful life of intangible assets acquired | 18 years | 19 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Mar. 31, 2020 | |
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 13 years | 13 years |
Accumulated Amortization | $ (637.3) | $ (607.9) |
Intangible assets not subject to amortization - trademarks and tradenames | ||
Gross Carrying Amount | 1,161.9 | 1,122.1 |
Net Carrying Amount | $ 524.6 | $ 514.2 |
Patents | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 10 years | 10 years |
Gross Carrying Amount | $ 52 | $ 51.1 |
Accumulated Amortization | (42.2) | (41.2) |
Net Carrying Amount | $ 9.8 | $ 9.9 |
Customer relationships (including distribution network) | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 14 years | 13 years |
Gross Carrying Amount | $ 784.9 | $ 748 |
Accumulated Amortization | (578) | (552.5) |
Net Carrying Amount | $ 206.9 | $ 195.5 |
Tradenames | ||
Intangible assets subject to amortization: | ||
Weighted Average Useful Life | 13 years | 13 years |
Gross Carrying Amount | $ 44.1 | $ 42.1 |
Accumulated Amortization | (17.1) | (14.2) |
Net Carrying Amount | 27 | 27.9 |
Intangible assets not subject to amortization - trademarks and tradenames | ||
Intangible assets not subject to amortization - trademarks and tradenames | $ 280.9 | $ 280.9 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 125.6 | $ 128.5 |
Contract liabilities | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 4 | 7.3 |
Sales rebates | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 35.7 | 35.5 |
Commissions | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 5.9 | 7 |
Restructuring and other similar charges | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 6.8 | 9.8 |
Product warranty | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 8.9 | 6.7 |
Risk management | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 10.5 | 10.4 |
Legal and environmental | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 2.4 | 1.5 |
Taxes, other than income taxes | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 7.7 | 8.3 |
Income taxes payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 14.5 | 9.9 |
Interest payable | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 1.4 | 8.3 |
Current portion of operating lease liability | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | 13.3 | 12.8 |
Other | ||
Components of Other Current Liabilities [Line Items] | ||
Other current liabilities | $ 14.5 | $ 11 |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 07, 2017 |
Debt Instrument [Line Items] | |||
Total | $ 1,191.6 | $ 1,473.4 | |
Less current maturities | 2.4 | 76.4 | |
Long-term debt | 1,189.2 | 1,397 | |
Term loans | Credit Facility | |||
Debt Instrument [Line Items] | |||
Total | 621.5 | 620.8 | |
Unamortized original issue discount | 3.5 | 4.2 | |
Term loans | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total | 0 | 249.2 | |
Unamortized original issue discount | 0.8 | ||
4.875% Senior notes due 2025 | Senior notes | |||
Debt Instrument [Line Items] | |||
Total | 496.3 | 495.7 | |
Unamortized original issue discount | 3.7 | 4.3 | |
Interest rate | 4.875% | ||
Securitization facility borrowings | Other | |||
Debt Instrument [Line Items] | |||
Total | 0 | 74.9 | |
Unamortized original issue discount | 0.1 | ||
Finance leases and other subsidiary debt | Other | |||
Debt Instrument [Line Items] | |||
Total | $ 73.8 | $ 32.8 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Nov. 21, 2019USD ($) | Nov. 20, 2019USD ($) | Dec. 07, 2017USD ($)Rate | Dec. 31, 2015USD ($)plantRate | Dec. 31, 2020USD ($)Rate | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||||
Gain on the extinguishment of debt | $ 0 | $ 1,000,000 | $ 1,000,000 | $ 4,300,000 | ||||
Long-term debt, gross | 1,198,800,000 | |||||||
Proceeds from borrowings of debt | 6,000,000 | 725,000,000 | 1,050,000,000 | 270,800,000 | ||||
Outstanding principal | 1,191,600,000 | 1,473,400,000 | ||||||
Direct costs | 7,200,000 | |||||||
Cash interest paid | $ 41,800,000 | 55,900,000 | 63,800,000 | |||||
Manufacturing Facility | North America | ||||||||
Debt Instrument [Line Items] | ||||||||
Number of plants | plant | 2 | |||||||
Term loans | Senior Secured Leverage Ratio (Numerator) | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Total net leverage ratio | Rate | 675.00% | |||||||
Other | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 73,800,000 | 32,800,000 | ||||||
Term Refinancing Loan Facility | Term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 725,000,000 | $ 800,000,000 | 725,000,000 | |||||
Remaining borrowing capacity | $ 625,000,000 | |||||||
Long-term debt, voluntary prepayment | 100,000,000 | |||||||
Gain on the extinguishment of debt | (1,500,000) | |||||||
Refinancing related costs | 700,000 | |||||||
Loss on debt extinguishment to write off a portion of the unamortized debt issuance costs | 800,000 | |||||||
Direct costs capitalized | 100,000 | |||||||
Additional gain (loss) on extinguishment of debt | $ (700,000) | |||||||
Revolving Credit Facility | Term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 264,000,000 | |||||||
Weighted-average effective interest rate | 4.00% | 4.00% | ||||||
Positive ratio | Rate | 230.00% | |||||||
Unused capacity, commitment fee percentage | 0.50% | |||||||
Long-term debt, gross | $ 0 | $ 250,000,000 | ||||||
Outstanding letters of credit | 3,000,000 | 4,700,000 | ||||||
Unamortized original issue discount | 800,000 | |||||||
Outstanding principal | $ 0 | 249,200,000 | ||||||
Prior Term Loan | Term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Total net leverage ratio | Rate | 230.00% | |||||||
Long-term debt, voluntary prepayment | $ 75,000,000 | 75,000,000 | ||||||
Gain on the extinguishment of debt | (700,000) | |||||||
Unamortized original issue discount | $ 3,500,000 | 4,200,000 | ||||||
Outstanding principal | $ 621,500,000 | $ 620,800,000 | ||||||
Amended Term Refinancing Loan Facility | Term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
LIBOR floor, scenario one | 0.00% | |||||||
Weighted-average effective interest rate | 1.89% | 2.74% | ||||||
Weighted average effective interest rate, over time | 2.02% | 3.96% | ||||||
Amended Term Refinancing Loan Facility | Term loans | London Interbank Offered Rate (LIBOR), Scenario One | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | 2.00% | ||||||
Amended Term Refinancing Loan Facility | Term loans | London Interbank Offered Rate (LIBOR), Scenario Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.75% | 1.00% | ||||||
Term Loan Facility | Term loans | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 264,000,000 | |||||||
Positive ratio | Rate | 150.00% | |||||||
Decrease in applicable margin | 0.25% | |||||||
Term Loan Facility | Term loans | ABR Borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.00% | |||||||
Term Loan Facility | Term loans | Eurocurrency Borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.00% | |||||||
Senior notes | 4.875% Senior notes due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | Rate | 4.875% | |||||||
Proceeds from borrowings of debt | $ 500,000,000 | |||||||
Redemption price, percentage | 40.00% | |||||||
Percentage of principal amount redeemed | 101.00% | |||||||
Restricted subsidiaries, amount | $ 50,000,000 | |||||||
Unamortized original issue discount | $ 3,700,000 | $ 4,300,000 | ||||||
Outstanding principal | 496,300,000 | 495,700,000 | ||||||
Other | Accounts Receivable Securitization Program | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 100,000,000 | |||||||
Remaining borrowing capacity | $ 85,700,000 | $ 100,000,000 | ||||||
Weighted-average effective interest rate | 1.37% | 2.19% | ||||||
Weighted average effective interest rate, over time | 1.56% | 2.09% | ||||||
Unused capacity, commitment fee percentage | 0.40% | |||||||
Long-term debt, gross | $ 0 | $ 75,000,000 | ||||||
Outstanding letters of credit | $ 7,500,000 | 5,700,000 | ||||||
Term of extension option | 6 months | |||||||
Unamortized original issue discount | 100,000 | |||||||
Outstanding principal | $ 0 | 74,900,000 | ||||||
Other | Accounts Receivable Securitization Program | London Interbank Offered Rate (LIBOR) | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.30% | |||||||
Other | New Market Tax Credit- Phase 2 | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds from borrowings of long-term debt | $ 9,800,000 | |||||||
Other | New Market Tax Credit | ||||||||
Debt Instrument [Line Items] | ||||||||
Gain on the extinguishment of debt | 3,200,000 | 5,000,000 | ||||||
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 | |||||||
Unamortized original issue discount | $ 500,000 | |||||||
Outstanding principal | 14,000,000 | |||||||
Loans receivables | $ 9,700,000 |
Long-Term Debt - Future Debt Ma
Long-Term Debt - Future Debt Maturities (Details) $ in Millions | Dec. 31, 2020USD ($) |
Years ending December 31: | |
2021 | $ 2.4 |
2022 | 2.4 |
2023 | 2.6 |
2024 | 627.8 |
2025 | 503 |
Thereafter | 60.6 |
Long-term debt, gross | $ 1,198.8 |
Comparative Nine Month Financ_3
Comparative Nine Month Financial Information - Consolidated Statements of Operations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Net sales | $ 490.4 | $ 493.6 | $ 449.1 | $ 547 | $ 491.7 | $ 521.3 | $ 508.3 | $ 1,433.1 | $ 1,521.3 | $ 2,068.3 | $ 2,050.9 |
Cost of sales | 881.4 | 919.8 | 1,250.3 | 1,266.1 | |||||||
Gross profit | 181.7 | 193.1 | 176.9 | 216.5 | 191.7 | 208.2 | 201.6 | 551.7 | 601.5 | 818 | 784.8 |
Selling, general and administrative expenses | 321.7 | 320 | 432.8 | 433.1 | |||||||
Restructuring and other similar charges | 14.6 | 8.9 | 15.5 | 12.1 | |||||||
Amortization of intangible assets | 27 | 26.3 | 35.4 | 34 | |||||||
Income (loss) from operations | 188.4 | 246.3 | 334.3 | 305.6 | |||||||
Non-operating (expense) income: | |||||||||||
Interest expense, net | (36.6) | (45.2) | (58.6) | (69.9) | |||||||
Gain on the extinguishment of debt | 0 | 1 | 1 | 4.3 | |||||||
Actuarial (loss) gain on pension and postretirement benefit obligations | (35.8) | (1.6) | (0.8) | (36.6) | 0.4 | ||||||
Other income (expense), net | 4.5 | (0.2) | (3.8) | (1.6) | |||||||
Pre-tax Loss | 154.7 | 201.1 | 236.3 | 238.8 | |||||||
Provision for income taxes | (36.3) | (47.7) | (54.1) | (53.4) | |||||||
Equity method investment income | 0.2 | 0.2 | 0 | 3.6 | |||||||
Net income from continuing operations | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 48.5 | 118.6 | 153.6 | 182.2 | 189 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.8) | 0 | (1.8) | (1.8) | (154.7) | |||
Net income | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 46.7 | 118.6 | 151.8 | 180.4 | 34.3 |
Non-controlling interest income | 0.2 | 0 | 0.2 | 0.1 | (0.1) | 0.1 | 0.2 | 0.4 | 0.2 | 0.3 | 0 |
Net income attributable to Rexnord | 37.2 | 45.4 | 35.6 | 28.5 | 48.5 | 56.6 | 46.5 | 118.2 | 151.6 | 180.1 | 34.3 |
Dividends on preferred stock | 0 | 0 | 0 | 0 | (2.8) | (5.8) | (5.8) | 0 | (14.4) | (14.4) | (23.2) |
Net income attributable to Rexnord common stockholders | $ 37.2 | $ 45.4 | $ 35.6 | $ 28.5 | $ 45.7 | $ 50.8 | $ 40.7 | $ 118.2 | $ 137.2 | $ 165.7 | $ 11.1 |
Basic net income (loss) per share attributable to Rexnord common stockholders: | |||||||||||
Continuing operations (in dollars per share) | $ 0.31 | $ 0.38 | $ 0.30 | $ 0.23 | $ 0.40 | $ 0.48 | $ 0.40 | $ 0.98 | $ 1.28 | $ 1.50 | $ 1.58 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.02) | 0 | (0.02) | (0.02) | (1.48) | |||
Net income (in dollars per share) | 0.31 | 0.38 | 0.30 | 0.23 | 0.40 | 0.48 | 0.39 | 0.98 | 1.27 | 1.48 | 0.11 |
Diluted net income (loss) per share attributable to Rexnord common stockholders: | |||||||||||
Continuing operations (in dollars per share) | 0.30 | 0.37 | 0.29 | 0.23 | 0.39 | 0.46 | 0.39 | 0.96 | 1.24 | 1.46 | 1.53 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) | 0 | (0.01) | (0.01) | (1.25) | |||
Net income (in dollars per share) | $ 0.30 | $ 0.37 | $ 0.29 | $ 0.23 | $ 0.39 | $ 0.46 | $ 0.38 | $ 0.96 | $ 1.22 | $ 1.45 | $ 0.28 |
Weighted-average number of common shares outstanding (in thousands): | |||||||||||
Basic (in shares) | 120,428 | 108,250 | 111,689 | 104,640 | |||||||
Effect of dilutive equity options (in shares) | 2,771 | 15,560 | 12,574 | 18,689 | |||||||
Diluted (in shares) | 123,199 | 123,810 | 124,263 | 123,329 |
Comparative Nine Month Financ_4
Comparative Nine Month Financial Information - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | |||||||||||
Net income | $ 37.4 | $ 45.4 | $ 35.8 | $ 28.6 | $ 48.4 | $ 56.7 | $ 46.7 | $ 118.6 | $ 151.8 | $ 180.4 | $ 34.3 |
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation | 40 | 38 | 51.2 | 58 | |||||||
Amortization of intangible assets | 27 | 26.3 | 35.4 | 34.3 | |||||||
(Gain) loss on dispositions of assets | (1.1) | 0 | (0.7) | 0.5 | |||||||
Deferred income taxes | (7) | 4.9 | (2.8) | (27.5) | |||||||
Actuarial loss (gain) on pension and postretirement benefit obligations | 35.8 | 1.6 | 0.8 | 36.6 | (0.4) | ||||||
Other non-cash charges | (0.2) | 0.5 | 3.7 | 7.9 | |||||||
Gain on extinguishment of debt | 0 | (1) | (1) | (4.3) | |||||||
Stock-based compensation expense | 36.6 | 18.7 | 26.9 | 22.6 | |||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 65.1 | 34.4 | (19.9) | (29.8) | |||||||
Inventories | 0.5 | (34.4) | 0.1 | (24.7) | |||||||
Other assets | 2.4 | (18.2) | 3.2 | 4.1 | |||||||
Accounts payable | (65.1) | (12.4) | (3.7) | (1.3) | |||||||
Accruals and other | (22.1) | (34.7) | (10.8) | 35.9 | |||||||
Cash provided by (used for) operating activities | 196.3 | 174.7 | 298.6 | 258.1 | |||||||
Investing activities | |||||||||||
Expenditures for property, plant and equipment | (28.3) | (25.5) | (41.4) | (44.9) | |||||||
Acquisitions, net of cash acquired | (102) | (25.1) | (84.5) | (23.4) | |||||||
Proceeds from dispositions of long-lived assets | 7.8 | 2.9 | 4.1 | 4.7 | |||||||
Cash dividend from equity method investment | 0 | 0 | 1.3 | ||||||||
Net (payment) proceeds from divestiture of discontinued operations | 0 | (1.3) | (1.3) | 9 | |||||||
Cash used for investing activities | (122.5) | (49) | (123.1) | (53.3) | |||||||
Financing activities | |||||||||||
Proceeds from borrowings of debt | 6 | 725 | 1,050 | 270.8 | |||||||
Repayments of debt | (336.4) | (835.3) | (835.6) | (369) | |||||||
Repurchase of common stock | (59.3) | (20) | (100.7) | 0 | |||||||
Payment of common stock dividends | (28.8) | 0 | (9.8) | 0 | |||||||
Payment of preferred stock dividends | 0 | (17.4) | (17.4) | (23.2) | |||||||
Proceeds from exercise of stock options | 18.3 | 16.8 | 36 | 7.9 | |||||||
Taxes withheld and paid on employees' share-based payment awards | (9.4) | (7.6) | (7.6) | (3.2) | |||||||
Cash (used for) provided by financing activities | (409.6) | (138.5) | 114.9 | (116.7) | |||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18 | (2.7) | (9.5) | (13.2) | |||||||
(Decrease) increase in cash, cash equivalents and restricted cash | (317.8) | (15.5) | 280.9 | 74.9 | |||||||
Cash, cash equivalents and restricted cash at beginning of period | $ 573.4 | 277 | $ 292.5 | 573.4 | 292.5 | 292.5 | 217.6 | ||||
Cash, cash equivalents and restricted cash at end of period | $ 255.6 | $ 573.4 | $ 277 | $ 255.6 | $ 277 | $ 573.4 | $ 292.5 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 1,209.3 | $ 1,398.1 |
Leases - ROU Assets and Lease L
Leases - ROU Assets and Lease Liability Balances (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Assets | ||
Operating ROU assets | $ 71.3 | $ 71.1 |
Finance ROU assets | 71.5 | 27.3 |
Total ROU assets | 142.8 | 98.4 |
Current | ||
Operating | 13.3 | 12.8 |
Finance | 2.2 | 0.5 |
Non-current | ||
Operating | 60.1 | 63.1 |
Finance | 71.2 | 27.4 |
Total lease liabilities | $ 146.8 | $ 103.8 |
Operating lease, right-of-use, statement of financial position, extensible list | us-gaap:OtherAssets | us-gaap:OtherAssets |
Finance lease, right-of-use, statement of financial position, extensible list | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Operating lease, liability, current, statement of financial position, extensible list | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Finance lease, liability, current, statement of financial position, extensible list | us-gaap:DebtCurrent | us-gaap:DebtCurrent |
Operating lease, liability, noncurrent, statement of financial position, extensible list | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Finance lease, liability, noncurrent, statement of financial position, extensible list | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent |
Finance lease assets accumulated amortization | $ 3.4 | $ 1 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expenses | $ 13.8 | $ 15 |
Finance lease expenses: | ||
Depreciation of finance ROU assets | 2.4 | 1 |
Interest on lease liabilities | 2.4 | 1.6 |
Total finance lease expense | 4.8 | 2.6 |
Variable and short-term lease expense | 4 | 4.4 |
Total lease expense | 22.6 | 22 |
Property, plant and equipment, net | $ 434.8 | $ 378.8 |
Finance lease, right-of-use, statement of financial position, extensible list | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease expense under operating leases | $ 18.3 |
Leases - Future Minimum Lease P
Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Operating Leases | ||
2021 | $ 16.1 | |
2022 | 16.1 | |
2023 | 13.2 | |
2024 | 10.8 | |
2025 | 7.1 | |
Thereafter | 24.5 | |
Total future minimum lease payments | 87.8 | |
Less: Imputed interest | (14.4) | |
Total lease liabilities | $ 73.4 | |
Operating lease, right-of-use, statement of financial position, extensible list | us-gaap:OtherAssets | us-gaap:OtherAssets |
Finance Lease | ||
2021 | $ 6.1 | |
2022 | 6.1 | |
2023 | 6.3 | |
2024 | 6.3 | |
2025 | 6.3 | |
Thereafter | 88.5 | |
Total future minimum lease payments | 119.6 | |
Less: Imputed interest | (46.2) | |
Total lease liabilities | $ 73.4 | |
Finance lease, right-of-use, statement of financial position, extensible list | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Terms (Details) | Dec. 31, 2020Rate | Mar. 31, 2020Rate |
Weighted-average remaining lease terms (years): | ||
Operating leases | 6 years 3 months 18 days | 6 years 8 months 12 days |
Finance leases | 19 years 2 months 12 days | 27 years 9 months 18 days |
Weighted-average discount rate: | ||
Operating leases | 4.80% | 4.60% |
Finance leases | 5.40% | 5.70% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Mar. 31, 2020 | |
Cash Flow, Lessee [Abstract] | ||
Operating cash flows from operating leases | $ 11.5 | $ 14.4 |
Operating cash flows from finance leases | 2.4 | 1.5 |
Financing cash flows from finance leases | 1.1 | 0.4 |
Right-Of-Use Asset Obtained In Exchange For Lease Liability [Abstract] | ||
Operating leases | 5.1 | 43.4 |
Finance leases | $ 46.6 | $ 1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($)vestingPeriod$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Mar. 31, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Number of installment periods | vestingPeriod | 2 | ||
Shares authorized to be granted (in shares) | shares | 13,150,000 | ||
Stock-based compensation expense | $ 36.6 | $ 26.9 | $ 22.6 |
Tax benefit on stock-based compensation | 7.2 | 6.3 | 5.2 |
Excess tax benefit related to stock options exercised | 1.8 | $ 5.4 | $ 1.9 |
Unrecognized compensation cost | $ 35.8 | ||
Unrecognized compensation cost, weighted-average period of recognition | 1 year 7 days | ||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 7.69 | $ 9.50 | $ 10.59 |
Fair value of options vested | $ 4.6 | $ 10.2 | $ 12.3 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award maximum term | 10 years | ||
Restricted Stock Units (RSUs) | Nonemployee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period until shares are issued | 6 months | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | 3 years | |
Period until shares are issued | 21 months | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 0.00% | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 200.00% |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Options Granted (Details) - Stock Options | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020Rate | Mar. 31, 2020Rate | Mar. 31, 2019Rate | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option term (in years) | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Expected volatility factor | 35.00% | 29.00% | 30.00% |
Weighted-average risk free interest rate | 0.48% | 2.27% | 2.85% |
Expected dividend rate | 1.30% | 0.00% | 0.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Shares | |||
Outstanding at beginning of period (in shares) | 5,513,156 | 7,843,911 | 8,117,947 |
Granted (in shares) | 197,565 | 154,934 | 564,666 |
Exercised (in shares) | (1,780,068) | (2,398,363) | (642,953) |
Canceled/Forfeited (in shares) | (67,831) | (87,326) | (195,749) |
Outstanding at end of period (in shares) | 3,862,822 | 5,513,156 | 7,843,911 |
Weighted Avg. Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 22.28 | $ 20.49 | $ 19.50 |
Granted (in dollars per share) | 25.54 | 27.50 | 28.88 |
Exercised (in dollars per share) | 20.92 | 16.65 | 14.21 |
Canceled/Forfeited (in dollars per share) | 26.90 | 25.69 | 23.95 |
Outstanding at end of period (in dollars per share) | $ 22.99 | $ 22.28 | $ 20.49 |
Exercisable at end of period (in shares) | 3,450,079 | 4,739,921 | 5,833,565 |
Exercisable at end of period (in dollars per share) | $ 22.50 | $ 21.61 | $ 19.42 |
Intrinsic value of options exercised | $ 19.9 | $ 35.1 | $ 9.9 |
Weighted average remaining contractual life of options outstanding | 5 years 7 months 6 days | 5 years 4 months 24 days | 5 years 6 months |
Aggregate intrinsic value of options outstanding | $ 63.7 | ||
Weighted average remaining contractual life of options exercisable | 5 years 3 months 18 days | 4 years 10 months 24 days | 4 years 7 months 6 days |
Aggregate intrinsic value of options exercisable | $ 58.6 |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Options (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Shares | |||
Nonvested options at beginning of period (in shares) | 773,235 | ||
Granted (in shares) | 197,565 | 154,934 | 564,666 |
Vested (in shares) | (509,543) | ||
Canceled/Forfeited (in shares) | (48,514) | ||
Nonvested options at end of period (in shares) | 412,743 | 773,235 | |
Weighted Avg. Exercise Price | |||
Nonvested options at beginning of period (in dollars per share) | $ 26.41 | ||
Granted (in dollars per share) | 25.54 | $ 27.50 | $ 28.88 |
Vested (in dollars per share) | 25.41 | ||
Canceled/Forfeited (in dollars per share) | 27.25 | ||
Nonvested options at end of period (in dollars per share) | $ 27.13 | $ 26.41 |
Stock-Based Compensation - No_2
Stock-Based Compensation - Nonvested Stock Unit Activity (Details) - $ / shares | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Restricted Stock Units (RSUs) | |||
Units | |||
Nonvested units at beginning of period (in shares) | 545,275 | 417,347 | 368,182 |
Granted (in shares) | 430,646 | 422,707 | 300,119 |
Vested (in shares) | (287,696) | (253,831) | (149,531) |
Canceled/Forfeited (in shares) | (40,557) | (40,948) | (101,423) |
Nonvested units at end of period (in shares) | 647,668 | 545,275 | 417,347 |
Weighted Avg. Grant Date Fair Value | |||
Nonvested units at beginning of period (in dollars per share) | $ 27.54 | $ 25.94 | $ 21.55 |
Granted (in dollars per share) | 25.56 | 27.52 | 28.87 |
Vested (in dollars per share) | 26.90 | 24.90 | 24.30 |
Canceled/Forfeited (in dollars per share) | 27.04 | 27.29 | 21.10 |
Nonvested units at end of period (in dollars per share) | $ 26.54 | $ 27.54 | $ 25.94 |
Performance Shares | |||
Units | |||
Nonvested units at beginning of period (in shares) | 480,186 | 351,104 | 453,001 |
Granted (in shares) | 547,374 | 324,619 | 183,069 |
Vested (in shares) | 0 | (169,748) | (217,319) |
Canceled/Forfeited (in shares) | (4,575) | (25,789) | (67,647) |
Nonvested units at end of period (in shares) | 1,022,985 | 480,186 | 351,104 |
Weighted Avg. Grant Date Fair Value | |||
Nonvested units at beginning of period (in dollars per share) | $ 28.01 | $ 27.76 | $ 25.53 |
Granted (in dollars per share) | 25.52 | 27.50 | 28.91 |
Vested (in dollars per share) | 0 | 23.13 | 23.89 |
Canceled/Forfeited (in dollars per share) | 26.23 | 26.99 | 28.37 |
Nonvested units at end of period (in dollars per share) | $ 26.68 | $ 28.01 | $ 27.76 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)category$ / sharesRateshares | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Actuarial (loss) gain on pension and postretirement benefit obligations | $ (35.8) | $ (1.6) | $ (0.8) | $ (36.6) | $ 0.4 |
Cash contribution to purchase the annuity contract | 3.9 | ||||
Non-cash pre-tax losses from termination of plan | 0.8 | ||||
Contributions | 6 | 0.3 | 1.3 | ||
Plan assets | 446.9 | 503.5 | 446.9 | ||
Defined contribution savings plan - expense recognized | $ 5.7 | 7.7 | 15.5 | ||
Defined Contribution Savings Plan | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Granted (in shares) | shares | 156,316 | ||||
Granted (in dollars per share) | $ / shares | $ 30.38 | ||||
Pension Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Actuarial (loss) gain on pension and postretirement benefit obligations | $ (44.2) | (33) | |||
Contributions | 7.9 | 6.6 | |||
Projected benefit obligation | 623.2 | 662.1 | 623.2 | 623.8 | |
Plan assets | 446.9 | 503.5 | 446.9 | 480.2 | |
Under-funded status | 176.3 | $ 158.6 | 176.3 | ||
Number of investment categories | category | 2 | ||||
Pension plans that are not fully funded - projected benefit obligation | 590.5 | $ 622 | 590.5 | ||
Pension plans that are not fully funded - accumulated benefit obligation | 585.9 | 617.6 | 585.9 | ||
Pension plans that are not fully funded - fair value of plan assets | 413.9 | 462.9 | 413.9 | ||
Other Postretirement Benefits | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Actuarial (loss) gain on pension and postretirement benefit obligations | 0.2 | (0.6) | |||
Contributions | 1.3 | 2.4 | |||
Projected benefit obligation | 16.1 | 15.4 | 16.1 | 16.9 | |
Plan assets | 0 | 0 | 0 | $ 0 | |
Under-funded status | $ 16.1 | $ 15.4 | $ 16.1 | ||
Assumed health care cost trend rate, percent | Rate | 6.30% | ||||
Ultimate health care cost trend rate, percent | Rate | 5.00% |
Retirement Benefits - Pension a
Retirement Benefits - Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Amortization: | |||
Cash contribution to purchase the annuity contract | $ 3.9 | ||
Non-cash pre-tax losses from termination of plan | 0.8 | ||
Pension Benefits | |||
Pension and Other Postretirement Benefits: | |||
Service cost | $ 0.4 | 0.5 | $ 0.5 |
Interest cost | 13.9 | 21.9 | 23.6 |
Expected return on plan assets | (13.9) | (22.5) | (24.8) |
Benefit cost associated with special events: | |||
Settlement | 0 | 0.8 | 0.6 |
Amortization: | |||
Recognition of actuarial losses | 1.6 | 35.9 | 0.7 |
Net periodic benefit cost | 2 | 36.6 | 0.6 |
Postretirement Benefits | |||
Pension and Other Postretirement Benefits: | |||
Service cost | 0 | 0 | 0 |
Interest cost | 0.4 | 0.7 | 0.8 |
Amortization: | |||
Prior service cost | (0.2) | (0.3) | (1.5) |
Recognition of actuarial losses | 0 | (0.1) | (1.7) |
Net periodic benefit cost | $ 0.2 | $ 0.3 | $ (2.4) |
Retirement Benefits - Status of
Retirement Benefits - Status of Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Actuarial loss on pension and postretirement benefit obligations | $ (35.8) | $ (1.6) | $ (0.8) | $ (36.6) | $ 0.4 |
Plan assets at the beginning of the period | 446.9 | ||||
Contributions | 6 | 0.3 | 1.3 | ||
Plan assets at end of period | 446.9 | 503.5 | 446.9 | ||
Net amount on Consolidated Balance Sheets consists of: | |||||
Current liabilities | (3.2) | (3.1) | (3.2) | ||
Long-term liabilities | (189.6) | (171.4) | (189.6) | ||
Pension Benefits | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Benefit obligation at beginning of period | (623.2) | (623.8) | (623.8) | ||
Service cost | (0.4) | (0.5) | (0.5) | ||
Interest cost | (13.9) | (21.9) | (23.6) | ||
Actuarial loss on pension and postretirement benefit obligations | (44.2) | (33) | |||
Benefits paid | 29 | 54 | |||
Plan participant contributions | 0 | 0 | |||
Translation and other adjustments | (9.4) | 2 | |||
Benefit obligation at end of period | (623.2) | (662.1) | (623.2) | (623.8) | |
Plan assets at the beginning of the period | 446.9 | 480.2 | 480.2 | ||
Actual return on plan assets | 73.3 | 15 | |||
Contributions | 7.9 | 6.6 | |||
Benefits paid | (29) | (54) | |||
Translation adjustment | 4.4 | (0.9) | |||
Plan assets at end of period | 446.9 | 503.5 | 446.9 | 480.2 | |
Funded status of plans | (176.3) | (158.6) | (176.3) | ||
Net amount on Consolidated Balance Sheets consists of: | |||||
Non-current assets | 0.4 | 0.5 | 0.4 | ||
Current liabilities | (1.6) | (1.7) | (1.6) | ||
Long-term liabilities | (175.1) | (157.4) | (175.1) | ||
Total net funded status | (176.3) | (158.6) | (176.3) | ||
Other Postretirement Benefits | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Benefit obligation at beginning of period | (16.1) | (16.9) | (16.9) | ||
Service cost | 0 | 0 | 0 | ||
Interest cost | (0.4) | (0.7) | (0.8) | ||
Actuarial loss on pension and postretirement benefit obligations | 0.2 | (0.6) | |||
Benefits paid | 1.2 | 2.4 | |||
Plan participant contributions | (0.3) | (0.3) | |||
Translation and other adjustments | 0 | 0 | |||
Benefit obligation at end of period | (16.1) | (15.4) | (16.1) | (16.9) | |
Plan assets at the beginning of the period | 0 | $ 0 | 0 | ||
Actual return on plan assets | 0 | 0 | |||
Contributions | 1.3 | 2.4 | |||
Benefits paid | (1.3) | (2.4) | |||
Translation adjustment | 0 | 0 | |||
Plan assets at end of period | 0 | 0 | 0 | $ 0 | |
Funded status of plans | (16.1) | (15.4) | (16.1) | ||
Net amount on Consolidated Balance Sheets consists of: | |||||
Non-current assets | 0 | 0 | 0 | ||
Current liabilities | (1.6) | (1.4) | (1.6) | ||
Long-term liabilities | (14.5) | (14) | (14.5) | ||
Total net funded status | $ (16.1) | $ (15.4) | $ (16.1) |
Retirement Benefits - Accumulat
Retirement Benefits - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service credit | $ (1) | $ (1.2) |
Unrecognized actuarial loss (gain) | 38.8 | 55.4 |
Accumulated other comprehensive loss (income), gross | 37.8 | 54.2 |
Deferred income tax (benefit) provision | (10) | (13.6) |
Accumulated other comprehensive loss (income), net | 27.8 | 40.6 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service credit | (0.1) | (0.1) |
Unrecognized actuarial loss (gain) | 40 | 56.5 |
Accumulated other comprehensive loss (income), gross | 39.9 | 56.4 |
Deferred income tax (benefit) provision | (10.5) | (14.1) |
Accumulated other comprehensive loss (income), net | 29.4 | 42.3 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service credit | (0.9) | (1.1) |
Unrecognized actuarial loss (gain) | (1.2) | (1.1) |
Accumulated other comprehensive loss (income), gross | (2.1) | (2.2) |
Deferred income tax (benefit) provision | 0.5 | 0.5 |
Accumulated other comprehensive loss (income), net | $ (1.6) | $ (1.7) |
Retirement Benefits - Significa
Retirement Benefits - Significant Assumptions (Details) | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020Rate | Mar. 31, 2020Rate | Mar. 31, 2019Rate | |
Pension Benefits | |||
Benefit Obligations: | |||
Discount rate | 2.30% | 3.10% | 3.70% |
Rate of compensation increase | 3.00% | 3.00% | 2.90% |
Net Periodic Benefit Cost: | |||
Discount rate | 3.10% | 3.70% | 3.70% |
Rate of compensation increase | 3.00% | 2.90% | 2.90% |
Expected return on plan assets | 4.30% | 4.90% | 5.10% |
Postretirement Benefits | |||
Benefit Obligations: | |||
Discount rate | 2.40% | 3.30% | 3.90% |
Net Periodic Benefit Cost: | |||
Discount rate | 3.30% | 3.90% | 4.00% |
Retirement Benefits - Target In
Retirement Benefits - Target Investment Allocations (Details) | 9 Months Ended | |
Dec. 31, 2020Rate | Mar. 31, 2020Rate | |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment policy, minimum allocation | 20.00% | |
Investment policy, maximum allocation | 30.00% | |
Target Allocation | 28.00% | |
Actual Allocation | 27.00% | 29.00% |
Debt securities (including cash and cash equivalents) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment policy, minimum allocation | 55.00% | |
Investment policy, maximum allocation | 80.00% | |
Target Allocation | 64.00% | |
Actual Allocation | 63.00% | 61.00% |
Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investment policy, minimum allocation | 0.00% | |
Investment policy, maximum allocation | 10.00% | |
Target Allocation | 8.00% | |
Actual Allocation | 10.00% | 10.00% |
Retirement Benefits - Fair Valu
Retirement Benefits - Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 503.5 | $ 446.9 | |
Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22.5 | 22.8 | |
Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39.9 | 32.6 | |
Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 441.1 | 391.5 | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9.6 | 11.1 | |
Cash and cash equivalents | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 9.6 | 11.1 | |
Cash and cash equivalents | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and cash equivalents | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 313.8 | 272.4 | |
Fixed income funds | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 313.8 | 272.4 | |
U.S. equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 74.1 | 67.9 | |
U.S. equity funds | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12.9 | 11.7 | |
U.S. equity funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. equity funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S. equity funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 61.2 | 56.2 | |
International equity funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37.2 | 35.7 | |
International equity funds | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equity funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equity funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International equity funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 37.2 | 35.7 | |
Balanced funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.8 | 5.6 | |
Balanced funds | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Balanced funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Balanced funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Balanced funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.8 | 5.6 | |
Alternative investment funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22.1 | 21.6 | |
Alternative investment funds | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative investment funds | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative investment funds | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative investment funds | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22.1 | 21.6 | |
Insurance contracts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39.9 | 32.6 | |
Insurance contracts | Quoted Prices in Active Market (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance contracts | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Insurance contracts | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 39.9 | 32.6 | $ 29.9 |
Insurance contracts | Fair Value Measured at Net Asset Value Per Share | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Retirement Benefits - Changes i
Retirement Benefits - Changes in Fair Value of Level 3 Investments (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Mar. 31, 2020 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | $ 446.9 | |
Actual return on assets: | ||
Plan assets at end of period | 503.5 | $ 446.9 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 32.6 | |
Actual return on assets: | ||
Plan assets at end of period | 39.9 | 32.6 |
Insurance Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 32.6 | |
Actual return on assets: | ||
Plan assets at end of period | 39.9 | 32.6 |
Insurance Contracts | Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Plan assets at the beginning of the period | 32.6 | 29.9 |
Actual return on assets: | ||
Related to assets held at reporting date | 7.3 | 2.7 |
Related to assets sold during the period | 0 | 0 |
Purchases, sales, issuances and settlements | 0 | 0 |
Plan assets at end of period | $ 39.9 | $ 32.6 |
Retirement Benefits - Expected
Retirement Benefits - Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | $ 38.6 |
2022 | 38.4 |
2023 | 38.7 |
2024 | 37.9 |
2025 | 37.4 |
2026 - 2030 | 179.3 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2021 | 1.4 |
2022 | 1.4 |
2023 | 1.3 |
2024 | 1.3 |
2025 | 1.2 |
2026 - 2030 | $ 4.8 |
Retirement Benefits - Deferred
Retirement Benefits - Deferred Compensation Plan (Details) - Supplemental Employee Retirement Plan - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | $ 11.7 | $ 7.2 |
Deferred compensation liability at fair value | 11.9 | 7.4 |
Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1 | 1.7 |
Corporate-owned life insurance policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 10.7 | 5.5 |
Quoted Prices in Active Market (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1 | 1.7 |
Deferred compensation liability at fair value | 11.9 | 7.4 |
Quoted Prices in Active Market (Level 1) | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 1 | 1.7 |
Quoted Prices in Active Market (Level 1) | Corporate-owned life insurance policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 10.7 | 5.5 |
Deferred compensation liability at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Corporate-owned life insurance policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 10.7 | 5.5 |
Significant Unobservable Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Deferred compensation liability at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate-owned life insurance policies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total assets at fair value | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2018 | Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Estimated net income tax benefit | $ 66.5 | ||||
Net estimated income tax benefit associated with the remeasurement | 66.5 | ||||
Net effect to deferred taxes for U.S. Tax Reform | (65.9) | ||||
Reduction from net income tax benefit as a discrete item | $ 0.6 | $ (2.9) | $ 6.4 | 6.5 | |
Tax benefit associated with the one-time repatriation tax | 0.8 | ||||
One-time repatriation tax, included in repatriated earnings from foreign subsidiaries | 0.2 | ||||
Foreign NOL carryforwards | 15.5 | ||||
Valuation allowance for foreign NOL carryforward | 1.8 | ||||
Unremitted earnings no longer permanently reinvested | 41.6 | ||||
Undistributed earnings of foreign subsidiaries | 117.8 | ||||
Undistributed earnings of foreign subsidiaries, potential related taxes | 6.6 | ||||
Other liabilities | 4.7 | 6.5 | |||
Net cash paid for income taxes | 44.9 | 72.5 | 64.7 | ||
Liability for unrecognized tax benefits | 18.6 | 14.8 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 1.6 | 1.5 | |||
Income tax (benefit) expense | 0.1 | (1.2) | $ (1) | ||
Income tax examination, additional tax liabilities | 1.5 | ||||
Other Current Liabilities | |||||
Operating Loss Carryforwards [Line Items] | |||||
Accrued income taxes, current | 14.5 | 9.9 | |||
Other Current Assets | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income taxes receivable | 9.8 | $ 3.4 | |||
State Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
State tax net operating loss carryforwards | 457.7 | ||||
State tax net operating loss carryforwards, valuation allowance | 16 | ||||
Foreign Tax Authority | Federal Ministry of Finance, Germany | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax examination, additional tax liabilities | $ 1.7 | ||||
Domestic Tax Authority | Internal Revenue Service (IRS) | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax examination, penalties and interest expense | $ 0.4 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Current: | ||||
United States | $ 20 | $ 31.3 | $ 55.7 | |
Non-United States | 18.7 | 18.6 | 21.6 | |
State and local | 5 | 5.8 | 8 | |
Total current | 43.7 | 55.7 | 85.3 | |
Deferred: | ||||
United States | (5.9) | 1 | (23) | |
Non-United States | 1.7 | (3.3) | (5.2) | |
State and local | (3.2) | 0.7 | (3.7) | |
Total deferred | (7.4) | (1.6) | (31.9) | |
Provision for income taxes | $ 36.3 | $ 47.7 | $ 54.1 | $ 53.4 |
Income Taxes - U.S. Statutory I
Income Taxes - U.S. Statutory Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes at U.S. federal statutory income tax rate | $ 32.5 | $ 49.6 | $ 50.1 | ||
State and local income taxes, net of federal benefit | 2.9 | 5.2 | 5.3 | ||
Net effects of foreign rate differential | 2.5 | 2.6 | 1.8 | ||
Net effects of foreign operations | 2.5 | 2.6 | 1.6 | ||
Net effect to deferred taxes for changes in tax rates | 0.5 | (1.1) | (2.6) | ||
Net effect to deferred taxes for U.S. Tax Reform | 0 | 0 | 0.8 | ||
Net effect of U.S. Tax Reform transition tax | 0 | 0 | (0.1) | ||
Net effects of GILTI inclusion | $ 0.6 | (2.9) | 6.4 | 6.5 | |
Foreign derived intangible income deduction | (1) | (1.9) | (1.8) | ||
Unrecognized tax benefits, net of federal benefit | 2.5 | (6.8) | (7) | ||
Research and development credit | (0.7) | (1.2) | (0.9) | ||
Excess tax benefits related to equity compensation | (2.6) | (4.4) | (1.1) | ||
§162(m) compensation limitation | 2.2 | 2.7 | 1.9 | ||
Net changes in valuation allowance | (2.1) | 0 | (2.3) | ||
Other | 0 | 0.4 | 1.2 | ||
Provision for income taxes | $ 36.3 | $ 47.7 | $ 54.1 | $ 53.4 |
Income Taxes - Components of In
Income Taxes - Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
United States | $ 85.2 | $ 159.1 | $ 174.8 | |
Non-United States | 69.5 | 77.2 | 64 | |
Income from continuing operations before income taxes | $ 154.7 | $ 201.1 | $ 236.3 | $ 238.8 |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 |
Deferred tax assets: | ||
Compensation and retirement benefits | $ 57.4 | $ 63.5 |
General accruals and reserves | 11.4 | 8.7 |
Lease liabilities | 38.7 | 27.7 |
State tax net operating loss and credit carryforwards | 22.3 | 22.5 |
Federal and state capital loss carryforwards | 18.2 | 18.2 |
Foreign net operating loss and interest carryforwards | 3.4 | 5.2 |
Total deferred tax assets before valuation allowance | 151.4 | 145.8 |
Valuation allowance | (37.5) | (39.4) |
Total deferred tax assets | 113.9 | 106.4 |
Deferred tax liabilities: | ||
Property, plant and equipment | 31.9 | 33.8 |
Lease ROU assets | 37.7 | 26.2 |
Inventories | 18.7 | 21.6 |
Intangible assets and goodwill | 128.2 | 131.2 |
Other | 3.6 | 1 |
Total deferred tax liabilities | 220.1 | 213.8 |
Net deferred tax liabilities | 106.2 | 107.4 |
Net amount on Consolidated Balance Sheets consists of: | ||
Other assets | 13.2 | 13.6 |
Deferred income taxes | (119.4) | (121) |
Net long-term deferred tax liabilities | $ (106.2) | $ (107.4) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Mar. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Balance at beginning of period | $ 13.6 | $ 18.3 |
Additions based on tax positions related to the current year | 2 | 1.5 |
Additions for tax positions of prior years | 1.7 | 0 |
Reductions for tax positions of prior years | 0 | 0 |
Settlements | 0 | (1.4) |
Reductions due to lapse of applicable statute of limitations | (1.1) | (4.5) |
Cumulative translation adjustment | 1.1 | |
Cumulative translation adjustment | (0.3) | |
Balance at end of period | $ 17.3 | $ 13.6 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) lawsuit in Thousands | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020USD ($)claimantlawsuitcarrier | Mar. 31, 2014USD ($) | Dec. 31, 2002defendantrelease | |
Loss Contingencies [Line Items] | |||
Indemnity obligations (in excess of) | $ 900,000,000 | ||
Number of carriers that could impact coverage if insolvent | carrier | 1 | ||
Environmental Issue | Ellsworth Industrial Park Site | |||
Loss Contingencies [Line Items] | |||
Number of releases, or threatened releases, chlorinated solvents (or more) | release | 1 | ||
Percentage of indemnity obligations paid by seller | 100.00% | ||
Environmental Issue | Ellsworth Industrial Park Site | Minimum | |||
Loss Contingencies [Line Items] | |||
Number of defendants (at least) | defendant | 10 | ||
Asbestos Issue | Stearns | |||
Loss Contingencies [Line Items] | |||
Percentage of indemnity obligations paid by seller | 100.00% | ||
Number of pending claims | claimant | 300 | ||
Asbestos Issue | Prager | |||
Loss Contingencies [Line Items] | |||
Percentage of costs paid by insurance providers | 100.00% | ||
Asbestos Issue | Falk | |||
Loss Contingencies [Line Items] | |||
Percentage of indemnity obligations paid by seller | 100.00% | ||
Number of pending claims | claimant | 100 | ||
Asbestos Issue | Zurn | |||
Loss Contingencies [Line Items] | |||
Number of pending claims | claimant | 7,000 | ||
Number of pending lawsuits | lawsuit | 6 | ||
Expected time for claim to be filed | 10 years | ||
Estimate of potential liability | $ 59,000,000 | ||
Amount expected to be paid by insurance providers | $ 42,000,000 | ||
Timeframe of estimated claims disbursements | 10 years | ||
Damages from Product Defects | Zurn | |||
Loss Contingencies [Line Items] | |||
Claim settlement funding period | 7 years | ||
Settlement amount | $ 20,000,000 |
Public Offering and Common St_2
Public Offering and Common Stock Repurchases - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($)$ / sharesshares | Mar. 31, 2019USD ($)shares | Jan. 27, 2020USD ($) | Dec. 07, 2016$ / sharesshares | Mar. 31, 2015USD ($) | ||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Preferred stock under the if-converted method (in shares) | shares | 0 | 9,998,000 | 15,979,000 | ||||||||||||
Dividends on preferred stock | $ | $ 0 | $ 0 | $ 0 | $ 0 | $ 2,800,000 | $ 5,800,000 | $ 5,800,000 | $ 0 | $ 14,400,000 | $ 14,400,000 | $ 23,200,000 | ||||
Repurchase of common stock | $ | [1] | $ 59,300,000 | $ 100,700,000 | ||||||||||||
Depositary Shares | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Shares issued (in shares) | shares | 8,100,000 | ||||||||||||||
Preferred stock, conversion ratio | 0.05 | ||||||||||||||
Redeemable Convertible Preferred Stock | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Shares issued (in shares) | shares | 0 | 0 | 402,500 | ||||||||||||
Offering price (in dollars per share) | $ / shares | $ 50 | ||||||||||||||
Shares converted (in shares) | shares | 402,500 | ||||||||||||||
Preferred stock under the if-converted method (in shares) | shares | 16,000,000 | ||||||||||||||
Dividends paid | $ | $ 17,400,000 | $ 23,200,000 | |||||||||||||
Common Stock | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Stock repurchase program, authorized amount (up to) | $ | $ 300,000,000 | $ 200,000,000 | |||||||||||||
Stock repurchased during period, shares (in shares) | shares | 1,700,000 | 3,600,000 | 0 | ||||||||||||
Repurchase of common stock | $ | $ 59,300,000 | $ 100,700,000 | |||||||||||||
Repurchase of common stock (in dollars per share) | $ / shares | $ 34.97 | $ 27.94 | |||||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 163,700,000 | $ 163,700,000 | |||||||||||||
[1] | During the nine months ended December 31, 2020 and fiscal year ended March 31, 2020, the Company repurchased and canceled 1.7 million shares and 3.6 million shares of common stock at a total cost of $59.3 million and $100.7 million at a weighted average price of $34.97 and $27.94 per share, respectively. See Note 19 Common Stock Purchases and Public Offerings for additional information |
Business Segment Information -
Business Segment Information - Schedule of Business Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of business segments | segment | 2 | ||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | $ 490.4 | $ 493.6 | $ 449.1 | $ 547 | $ 491.7 | $ 521.3 | $ 508.3 | $ 1,433.1 | $ 1,521.3 | $ 2,068.3 | $ 2,050.9 |
Income (loss) from operations | 188.4 | 246.3 | 334.3 | 305.6 | |||||||
Non-operating expense: | |||||||||||
Interest expense, net | (36.6) | (45.2) | (58.6) | (69.9) | |||||||
Gain on the extinguishment of debt | 0 | 1 | 1 | 4.3 | |||||||
Actuarial (loss) gain on pension and postretirement benefit obligations | (35.8) | (1.6) | (0.8) | (36.6) | 0.4 | ||||||
Other income (expense), net | 4.5 | (0.2) | (3.8) | (1.6) | |||||||
Income from continuing operations before income taxes | 154.7 | 201.1 | 236.3 | 238.8 | |||||||
Provision for income taxes | (36.3) | (47.7) | (54.1) | (53.4) | |||||||
Equity method investment income | 0.2 | 0.2 | 0 | 3.6 | |||||||
Net income from continuing operations | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 48.5 | 118.6 | 153.6 | 182.2 | 189 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.8) | 0 | (1.8) | (1.8) | (154.7) | |||
Net income | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 46.7 | 118.6 | 151.8 | 180.4 | 34.3 |
Non-controlling interest income | 0.2 | 0 | 0.2 | 0.1 | (0.1) | 0.1 | 0.2 | 0.4 | 0.2 | 0.3 | 0 |
Net income attributable to Rexnord | 37.2 | 45.4 | 35.6 | 28.5 | 48.5 | 56.6 | 46.5 | 118.2 | 151.6 | 180.1 | 34.3 |
Dividends on preferred stock | 0 | 0 | 0 | 0 | (2.8) | (5.8) | (5.8) | 0 | (14.4) | (14.4) | (23.2) |
Net income attributable to Rexnord common stockholders | 37.2 | $ 45.4 | $ 35.6 | 28.5 | $ 45.7 | $ 50.8 | $ 40.7 | 118.2 | $ 137.2 | 165.7 | 11.1 |
Depreciation and Amortization | 67 | 86.6 | 87.9 | ||||||||
Capital Expenditures | 28.3 | 41.4 | 42.5 | ||||||||
Total Assets | 3,401.1 | 3,627.1 | 3,401.1 | 3,627.1 | 3,259.7 | ||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 1,433.1 | 2,068.3 | 2,050.9 | ||||||||
Long-lived Assets | 434.8 | 378.8 | 434.8 | 378.8 | 383 | ||||||
United States | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 995.3 | 1,472.7 | 1,460.6 | ||||||||
Long-lived Assets | 306.7 | 264.7 | 306.7 | 264.7 | 260.7 | ||||||
Europe | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 215 | 298.9 | 327.5 | ||||||||
Long-lived Assets | 76.4 | 72.9 | 76.4 | 72.9 | 78.9 | ||||||
Rest of World | |||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||
Net Sales | 222.8 | 296.7 | 262.8 | ||||||||
Long-lived Assets | 51.7 | 41.2 | 51.7 | 41.2 | 43.4 | ||||||
Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 870.4 | 1,358.2 | 1,380.6 | ||||||||
Non-operating expense: | |||||||||||
Capital Expenditures | 23.7 | 34.6 | 36.3 | ||||||||
Process & Motion Control | Europe | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 215 | 298.9 | 327.5 | ||||||||
Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 562.7 | 710.1 | 670.3 | ||||||||
Non-operating expense: | |||||||||||
Capital Expenditures | 4.6 | 6.8 | 6.2 | ||||||||
Water Management | Europe | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 0 | 0 | 0 | ||||||||
Operating Segments | Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Income (loss) from operations | 108.3 | 228.4 | 226.1 | ||||||||
Non-operating expense: | |||||||||||
Depreciation and Amortization | 44.5 | 59.6 | 63 | ||||||||
Total Assets | 2,627.2 | 2,953 | 2,627.2 | 2,953 | 2,677.7 | ||||||
Operating Segments | Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Income (loss) from operations | 126 | 163.1 | 139.7 | ||||||||
Non-operating expense: | |||||||||||
Depreciation and Amortization | 22.2 | 26.5 | 24.9 | ||||||||
Total Assets | 763 | 656.7 | 763 | 656.7 | 576.8 | ||||||
Corporate | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Income (loss) from operations | (45.9) | (57.2) | (60.2) | ||||||||
Non-operating expense: | |||||||||||
Depreciation and Amortization | 0.3 | 0.5 | 0 | ||||||||
Total Assets | $ 10.9 | $ 17.4 | 10.9 | 17.4 | 5.2 | ||||||
Original equipment manufacturers/ end-users | Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 518.1 | 766.8 | 768.5 | ||||||||
Maintenance, repair, and operations | Process & Motion Control | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 352.3 | 591.4 | 612.1 | ||||||||
Water safety, quality, flow control and conservation | Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | 527.4 | 661 | 624.4 | ||||||||
Water infrastructure | Water Management | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales by product | $ 35.3 | $ 49.1 | $ 45.9 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (unaudited) - Schedule of Quarterly Results of Operations (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Net sales | $ 490.4 | $ 493.6 | $ 449.1 | $ 547 | $ 491.7 | $ 521.3 | $ 508.3 | $ 1,433.1 | $ 1,521.3 | $ 2,068.3 | $ 2,050.9 |
Gross profit | 181.7 | 193.1 | 176.9 | 216.5 | 191.7 | 208.2 | 201.6 | 551.7 | 601.5 | 818 | 784.8 |
Net income from continuing operations | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 48.5 | 118.6 | 153.6 | 182.2 | 189 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.8) | 0 | (1.8) | (1.8) | (154.7) | |||
Net income | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 46.7 | 118.6 | 151.8 | 180.4 | 34.3 |
Non-controlling interest income | 0.2 | 0 | 0.2 | 0.1 | (0.1) | 0.1 | 0.2 | 0.4 | 0.2 | 0.3 | 0 |
Net income attributable to Rexnord | 37.2 | 45.4 | 35.6 | 28.5 | 48.5 | 56.6 | 46.5 | 118.2 | 151.6 | 180.1 | 34.3 |
Dividends on preferred stock | 0 | 0 | 0 | 0 | (2.8) | (5.8) | (5.8) | 0 | (14.4) | (14.4) | (23.2) |
Net income attributable to Rexnord common stockholders | $ 37.2 | $ 45.4 | $ 35.6 | $ 28.5 | $ 45.7 | $ 50.8 | $ 40.7 | $ 118.2 | $ 137.2 | $ 165.7 | $ 11.1 |
Basic net income per share attributable to Rexnord common stockholders | |||||||||||
Continuing operations (in dollars per share) | $ 0.31 | $ 0.38 | $ 0.30 | $ 0.23 | $ 0.40 | $ 0.48 | $ 0.40 | $ 0.98 | $ 1.28 | $ 1.50 | $ 1.58 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.02) | 0 | (0.02) | (0.02) | (1.48) | |||
Net income (in dollars per share) | 0.31 | 0.38 | 0.30 | 0.23 | 0.40 | 0.48 | 0.39 | 0.98 | 1.27 | 1.48 | 0.11 |
Diluted net income per share attributable to Rexnord common stockholders | |||||||||||
Continuing operations (in dollars per share) | 0.30 | 0.37 | 0.29 | 0.23 | 0.39 | 0.46 | 0.39 | 0.96 | 1.24 | 1.46 | 1.53 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | (0.01) | 0 | (0.01) | (0.01) | (1.25) | |||
Net income (in dollars per share) | $ 0.30 | $ 0.37 | $ 0.29 | $ 0.23 | $ 0.39 | $ 0.46 | $ 0.38 | $ 0.96 | $ 1.22 | $ 1.45 | $ 0.28 |
Actuarial (loss) gain on pension and postretirement benefit obligations | $ 35.8 | $ 1.6 | $ 0.8 | $ 36.6 | $ (0.4) | ||||||
Discontinued Operations, Held-for-sale | |||||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||||
Loss from discontinued operations, net of tax | $ 0 | $ (1.8) | $ (154.7) |
Guarantor Subsidiaries - Conden
Guarantor Subsidiaries - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 255.6 | $ 573.4 | ||
Receivables, net | 274.8 | 334.7 | ||
Inventories | 330.1 | 317.5 | ||
Income tax receivable | 9.8 | 3.4 | ||
Other current assets | 38.7 | |||
Other current assets | 37.4 | 35.3 | ||
Total current assets | 907.7 | 1,264.3 | ||
Property, plant and equipment, net | 434.8 | 378.8 | ||
Intangible assets, net | 524.6 | 514.2 | ||
Goodwill | 1,370.1 | 1,321.9 | $ 1,299.7 | |
Investment in: | ||||
Other assets | 163.9 | 147.9 | ||
Total assets | 3,401.1 | 3,627.1 | 3,259.7 | |
Current liabilities: | ||||
Current maturities of debt | 2.4 | 76.4 | ||
Trade payables | 129.4 | 185.6 | ||
Compensation and benefits | 57 | 61.8 | ||
Current portion of pension and postretirement benefit obligations | 3.1 | 3.2 | ||
Other current liabilities | 125.6 | 128.5 | ||
Total current liabilities | 317.5 | 455.5 | ||
Long-term debt | 1,189.2 | 1,397 | ||
Note payable to affiliates, net | 0 | 0 | ||
Pension and postretirement benefit obligations | 171.4 | 189.6 | ||
Deferred income taxes | 119.4 | 121 | ||
Other liabilities | 164.3 | 150.3 | ||
Total liabilities | 1,961.8 | 2,313.4 | ||
Total stockholders' equity | 1,439.3 | 1,313.7 | $ 1,231 | $ 1,212.8 |
Total liabilities and stockholders' equity | 3,401.1 | 3,627.1 | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income tax receivable | 0 | |||
Other current assets | 0 | |||
Other current assets | 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 | (5,776.6) | (5,327.1) | ||
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 | ||
Note payable to affiliates, net | 0 | 0 | ||
Pension and postretirement benefit obligations | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
Total stockholders' equity | (5,776.6) | (5,327.1) | ||
Total liabilities and stockholders' equity | (5,776.6) | (5,327.1) | ||
Issuer subsidiaries | ||||
Investment in: | ||||
Subsidiaries | (1,552.6) | (1,381.1) | ||
Guarantor subsidiaries | ||||
Investment in: | ||||
Subsidiaries | (3,532.2) | (3,324.9) | ||
Non-guarantor subsidiaries | ||||
Investment in: | ||||
Subsidiaries | (691.8) | (621.1) | ||
Parent | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0.5 | 11 | ||
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income tax receivable | 0 | |||
Other current assets | 0 | |||
Other current assets | 0 | |||
Total current assets | 0.5 | 11 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in: | ||||
Subsidiaries | 1,552.6 | 1,381.1 | ||
Other assets | 0 | 0 | ||
Total assets | 1,553.1 | 1,392.1 | ||
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 | ||
Note payable to affiliates, net | 113.1 | 77.9 | ||
Pension and postretirement benefit obligations | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0.7 | 0.5 | ||
Total liabilities | 113.8 | 78.4 | ||
Total stockholders' equity | 1,439.3 | 1,313.7 | ||
Total liabilities and stockholders' equity | 1,553.1 | 1,392.1 | ||
Issuers | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0.2 | 0.4 | ||
Receivables, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income tax receivable | 0 | |||
Other current assets | 0 | |||
Other current assets | 0 | |||
Total current assets | 0.2 | 0.4 | ||
Property, plant and equipment, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in: | ||||
Subsidiaries | 3,532.2 | 3,324.9 | ||
Other assets | 0.7 | 0 | ||
Total assets | 3,533.1 | 3,325.3 | ||
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 | 1.2 | 7.9 | ||
Total current liabilities | 1.2 | 7.9 | ||
Long-term debt | 1,117.8 | 1,290.9 | ||
Note payable to affiliates, net | 861.5 | 645.4 | ||
Pension and postretirement benefit obligations | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 1,980.5 | 1,944.2 | ||
Total stockholders' equity | 1,552.6 | 1,381.1 | ||
Total liabilities and stockholders' equity | 3,533.1 | 3,325.3 | ||
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 46.7 | 383.9 | ||
Receivables, net | 165.5 | 223.5 | ||
Inventories | 221.8 | 224.8 | ||
Income tax receivable | 8.5 | |||
Other current assets | 20.5 | |||
Other current assets | 18.6 | |||
Total current assets | 461.1 | 852.7 | ||
Property, plant and equipment, net | 292.8 | 256.1 | ||
Intangible assets, net | 403 | 424.8 | ||
Goodwill | 1,050.3 | 1,043.6 | ||
Investment in: | ||||
Subsidiaries | 691.8 | 621.1 | ||
Other assets | 100.7 | 88.7 | ||
Total assets | 2,999.7 | 3,287 | ||
Current liabilities: | ||||
Current maturities of debt | 2.3 | 75.4 | ||
Trade payables | 72.2 | 123.9 | ||
Compensation and benefits | 36.6 | 42.4 | ||
Current portion of pension and postretirement benefit obligations | 1.7 | 1.8 | ||
Other current liabilities | 77.8 | 79.9 | ||
Total current liabilities | 190.6 | 323.4 | ||
Long-term debt | 70.7 | 101.8 | ||
Note receivable from affiliates, net | (1,111.6) | (795.9) | ||
Pension and postretirement benefit obligations | 119.2 | 142.8 | ||
Deferred income taxes | 96.8 | 98.6 | ||
Other liabilities | 101.8 | 91.4 | ||
Total liabilities | (532.5) | (37.9) | ||
Total stockholders' equity | 3,532.2 | 3,324.9 | ||
Total liabilities and stockholders' equity | 2,999.7 | 3,287 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 208.2 | 178.1 | ||
Receivables, net | 109.3 | 111.2 | ||
Inventories | 108.3 | 92.7 | ||
Income tax receivable | 1.3 | |||
Other current assets | 18.2 | |||
Other current assets | 18.8 | |||
Total current assets | 445.9 | 400.2 | ||
Property, plant and equipment, net | 142 | 122.7 | ||
Intangible assets, net | 121.6 | 89.4 | ||
Goodwill | 319.8 | 278.3 | ||
Investment in: | ||||
Other assets | 62.5 | 59.2 | ||
Total assets | 1,091.8 | 949.8 | ||
Current liabilities: | ||||
Current maturities of debt | 0.1 | 1 | ||
Trade payables | 57.2 | 61.7 | ||
Compensation and benefits | 20.4 | 19.4 | ||
Current portion of pension and postretirement benefit obligations | 1.4 | 1.4 | ||
Other current liabilities | 46.6 | 40.7 | ||
Total current liabilities | 125.7 | 124.2 | ||
Long-term debt | 0.7 | 4.3 | ||
Note payable to affiliates, net | 137 | 72.6 | ||
Pension and postretirement benefit obligations | 52.2 | 46.8 | ||
Deferred income taxes | 22.6 | 22.4 | ||
Other liabilities | 61.8 | 58.4 | ||
Total liabilities | 400 | 328.7 | ||
Total stockholders' equity | 691.8 | 621.1 | ||
Total liabilities and stockholders' equity | $ 1,091.8 | $ 949.8 |
Guarantor Subsidiaries - Cond_2
Guarantor Subsidiaries - Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | $ 490.4 | $ 493.6 | $ 449.1 | $ 547 | $ 491.7 | $ 521.3 | $ 508.3 | $ 1,433.1 | $ 1,521.3 | $ 2,068.3 | $ 2,050.9 |
Cost of sales | 881.4 | 919.8 | 1,250.3 | 1,266.1 | |||||||
Gross profit | 181.7 | 193.1 | 176.9 | 216.5 | 191.7 | 208.2 | 201.6 | 551.7 | 601.5 | 818 | 784.8 |
Selling, general and administrative expenses | 321.7 | 320 | 432.8 | 433.1 | |||||||
Restructuring and other similar charges | 14.6 | 8.9 | 15.5 | 12.1 | |||||||
Amortization of intangible assets | 27 | 26.3 | 35.4 | 34 | |||||||
Income from operations | 188.4 | 246.3 | 334.3 | 305.6 | |||||||
Interest income (expense), net: | |||||||||||
To third parties | (36.6) | (58.6) | (69.9) | ||||||||
To affiliates | 0 | 0 | 0 | ||||||||
Gain on the extinguishment of debt | 0 | 1 | 1 | 4.3 | |||||||
Actuarial loss on pension and postretirement benefit obligations | (35.8) | (1.6) | (0.8) | (36.6) | 0.4 | ||||||
Other (expense) income, net | 4.5 | (0.2) | (3.8) | (1.6) | |||||||
Income from continuing operations before income taxes | 154.7 | 201.1 | 236.3 | 238.8 | |||||||
Provision for income taxes | (36.3) | (47.7) | (54.1) | (53.4) | |||||||
Equity method investment income | 0.2 | 0.2 | 0 | 3.6 | |||||||
Income (loss) before equity in income of subsidiaries | 118.6 | 182.2 | 189 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net income from continuing operations | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 48.5 | 118.6 | 153.6 | 182.2 | 189 |
Loss from discontinued operations, net of tax | 0 | 0 | 0 | (1.8) | 0 | (1.8) | (1.8) | (154.7) | |||
Net income | 37.4 | 45.4 | 35.8 | 28.6 | 48.4 | 56.7 | 46.7 | 118.6 | 151.8 | 180.4 | 34.3 |
Non-controlling interest income | 0.2 | 0 | 0.2 | 0.1 | (0.1) | 0.1 | 0.2 | 0.4 | 0.2 | 0.3 | 0 |
Net income attributable to Rexnord | 37.2 | 45.4 | 35.6 | 28.5 | 48.5 | 56.6 | 46.5 | 118.2 | 151.6 | 180.1 | 34.3 |
Dividends on preferred stock | 0 | 0 | 0 | 0 | (2.8) | (5.8) | (5.8) | 0 | (14.4) | (14.4) | (23.2) |
Net income attributable to Rexnord common stockholders | $ 37.2 | $ 45.4 | $ 35.6 | $ 28.5 | $ 45.7 | $ 50.8 | $ 40.7 | 118.2 | $ 137.2 | 165.7 | 11.1 |
Comprehensive income | 169.2 | 152.6 | 11.8 | ||||||||
Eliminations | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | (121.4) | (161.1) | (186.7) | ||||||||
Cost of sales | (121.4) | (161.1) | (186.7) | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Restructuring and other similar charges | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
Interest income (expense), net: | |||||||||||
To third parties | 0 | 0 | 0 | ||||||||
To affiliates | 0 | 0 | 0 | ||||||||
Gain on the extinguishment of debt | 0 | 0 | |||||||||
Actuarial loss on pension and postretirement benefit obligations | 0 | 0 | 0 | ||||||||
Other (expense) income, net | 0 | 0 | 0 | ||||||||
Income from continuing operations before income taxes | 0 | 0 | 0 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Equity method investment income | 0 | 0 | |||||||||
Income (loss) before equity in income of subsidiaries | 0 | 0 | 0 | ||||||||
Equity in earnings of subsidiaries | (212.6) | (381.5) | (19.6) | ||||||||
Net income from continuing operations | (212.6) | (381.5) | (19.6) | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Net income | (212.6) | (381.5) | (19.6) | ||||||||
Non-controlling interest income | 0 | 0 | 0 | ||||||||
Net income attributable to Rexnord | (212.6) | (381.5) | (19.6) | ||||||||
Dividends on preferred stock | 0 | 0 | |||||||||
Net income attributable to Rexnord common stockholders | (212.6) | (381.5) | (19.6) | ||||||||
Comprehensive income | (212.6) | (381.5) | (19.6) | ||||||||
Parent | |||||||||||
Interest income (expense), net: | |||||||||||
Equity method investment income | 0 | ||||||||||
Parent | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Restructuring and other similar charges | 0 | 0 | |||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
Interest income (expense), net: | |||||||||||
To third parties | 0 | 0 | 0 | ||||||||
To affiliates | 28.9 | 10.3 | 2 | ||||||||
Gain on the extinguishment of debt | 0 | 0 | |||||||||
Actuarial loss on pension and postretirement benefit obligations | 0 | 0 | 0 | ||||||||
Other (expense) income, net | 0 | 0 | 0 | ||||||||
Income from continuing operations before income taxes | 28.9 | 10.3 | 2 | ||||||||
Provision for income taxes | 0 | 0 | 0 | ||||||||
Equity method investment income | 0 | ||||||||||
Income (loss) before equity in income of subsidiaries | 28.9 | 10.3 | 2 | ||||||||
Equity in earnings of subsidiaries | 89.7 | 170.1 | 32.3 | ||||||||
Net income from continuing operations | 118.6 | 180.4 | 34.3 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Net income | 118.6 | 180.4 | 34.3 | ||||||||
Non-controlling interest income | 0 | 0 | 0 | ||||||||
Net income attributable to Rexnord | 118.6 | 180.4 | 34.3 | ||||||||
Dividends on preferred stock | (14.4) | (23.2) | |||||||||
Net income attributable to Rexnord common stockholders | 118.6 | 166 | 11.1 | ||||||||
Comprehensive income | 118.6 | 180.4 | 34.3 | ||||||||
Issuers | |||||||||||
Interest income (expense), net: | |||||||||||
Equity method investment income | 0 | ||||||||||
Issuers | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling, general and administrative expenses | 0 | 0 | 0 | ||||||||
Restructuring and other similar charges | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Income from operations | 0 | 0 | 0 | ||||||||
Interest income (expense), net: | |||||||||||
To third parties | (32.9) | (56.7) | (68.2) | ||||||||
To affiliates | 28.6 | 41.3 | 61.7 | ||||||||
Gain on the extinguishment of debt | (2.1) | (0.7) | |||||||||
Actuarial loss on pension and postretirement benefit obligations | 0 | 0 | 0 | ||||||||
Other (expense) income, net | (0.3) | 0.1 | 0.3 | ||||||||
Income from continuing operations before income taxes | (4.6) | (17.4) | (6.9) | ||||||||
Provision for income taxes | 0 | (0.5) | 0 | ||||||||
Equity method investment income | 0 | ||||||||||
Income (loss) before equity in income of subsidiaries | (4.6) | (17.9) | (6.9) | ||||||||
Equity in earnings of subsidiaries | 94.3 | 188 | 39.2 | ||||||||
Net income from continuing operations | 89.7 | 170.1 | 32.3 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
Net income | 89.7 | 170.1 | 32.3 | ||||||||
Non-controlling interest income | 0 | 0 | 0 | ||||||||
Net income attributable to Rexnord | 89.7 | 170.1 | 32.3 | ||||||||
Dividends on preferred stock | 0 | 0 | |||||||||
Net income attributable to Rexnord common stockholders | 89.7 | 170.1 | 32.3 | ||||||||
Comprehensive income | 110.5 | 167.9 | 22.5 | ||||||||
Guarantor Subsidiaries | |||||||||||
Interest income (expense), net: | |||||||||||
Equity method investment income | 0 | ||||||||||
Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 1,065.1 | 1,568.4 | 1,565 | ||||||||
Cost of sales | 655.9 | 944.7 | 977.1 | ||||||||
Gross profit | 409.2 | 623.7 | 587.9 | ||||||||
Selling, general and administrative expenses | 249.8 | 331.3 | 328.8 | ||||||||
Restructuring and other similar charges | 8 | 8.8 | 7.6 | ||||||||
Amortization of intangible assets | 22.1 | 28.1 | 27.5 | ||||||||
Income from operations | 129.3 | 255.5 | 224 | ||||||||
Interest income (expense), net: | |||||||||||
To third parties | (3.9) | (2.7) | (2) | ||||||||
To affiliates | (43.9) | (16.4) | (53.2) | ||||||||
Gain on the extinguishment of debt | 3.3 | 5 | |||||||||
Actuarial loss on pension and postretirement benefit obligations | 0 | (35.7) | 1 | ||||||||
Other (expense) income, net | 0.1 | (1.1) | 3.1 | ||||||||
Income from continuing operations before income taxes | 81.6 | 202.9 | 177.9 | ||||||||
Provision for income taxes | (15.9) | (38.3) | (44.5) | ||||||||
Equity method investment income | 0 | ||||||||||
Income (loss) before equity in income of subsidiaries | 65.7 | 164.6 | 133.4 | ||||||||
Equity in earnings of subsidiaries | 28.6 | 23.4 | (51.9) | ||||||||
Net income from continuing operations | 94.3 | 188 | 81.5 | ||||||||
Loss from discontinued operations, net of tax | 0 | 0 | (42.3) | ||||||||
Net income | 94.3 | 188 | 39.2 | ||||||||
Non-controlling interest income | 0 | 0 | 0 | ||||||||
Net income attributable to Rexnord | 94.3 | 188 | 39.2 | ||||||||
Dividends on preferred stock | 0 | 0 | |||||||||
Net income attributable to Rexnord common stockholders | 94.3 | 188 | 39.2 | ||||||||
Comprehensive income | 106.9 | 186.3 | 34.1 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Interest income (expense), net: | |||||||||||
Equity method investment income | 0.2 | ||||||||||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net sales | 489.4 | 661 | 672.6 | ||||||||
Cost of sales | 346.9 | 466.7 | 475.7 | ||||||||
Gross profit | 142.5 | 194.3 | 196.9 | ||||||||
Selling, general and administrative expenses | 71.9 | 101.5 | 104.3 | ||||||||
Restructuring and other similar charges | 6.6 | 6.7 | 4.5 | ||||||||
Amortization of intangible assets | 4.9 | 7.3 | 6.5 | ||||||||
Income from operations | 59.1 | 78.8 | 81.6 | ||||||||
Interest income (expense), net: | |||||||||||
To third parties | 0.2 | 0.8 | 0.3 | ||||||||
To affiliates | (13.6) | (35.2) | (10.5) | ||||||||
Gain on the extinguishment of debt | (0.2) | 0 | |||||||||
Actuarial loss on pension and postretirement benefit obligations | (1.6) | (0.9) | (0.6) | ||||||||
Other (expense) income, net | 4.7 | (2.8) | (5) | ||||||||
Income from continuing operations before income taxes | 48.8 | 40.5 | 65.8 | ||||||||
Provision for income taxes | (20.4) | (15.3) | (8.9) | ||||||||
Equity method investment income | 3.6 | ||||||||||
Income (loss) before equity in income of subsidiaries | 28.6 | 25.2 | 60.5 | ||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | ||||||||
Net income from continuing operations | 28.6 | 25.2 | 60.5 | ||||||||
Loss from discontinued operations, net of tax | 0 | (1.8) | (112.4) | ||||||||
Net income | 28.6 | 23.4 | (51.9) | ||||||||
Non-controlling interest income | 0.4 | 0.3 | 0 | ||||||||
Net income attributable to Rexnord | 28.2 | 23.1 | (51.9) | ||||||||
Dividends on preferred stock | 0 | 0 | |||||||||
Net income attributable to Rexnord common stockholders | 28.2 | 23.1 | (51.9) | ||||||||
Comprehensive income | $ 45.8 | $ (0.5) | $ (59.5) |
Guarantor Subsidiaries - Cond_3
Guarantor Subsidiaries - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||||
Cash provided by (used for) operating activities | $ 196.3 | $ 174.7 | $ 298.6 | $ 258.1 |
Investing activities | ||||
Expenditures for property, plant and equipment | (28.3) | (25.5) | (41.4) | (44.9) |
Acquisitions, net of cash acquired | (102) | (25.1) | (84.5) | (23.4) |
Proceeds from dispositions of long-lived assets | 7.8 | 2.9 | 4.1 | 4.7 |
Cash dividend from equity method investment | 0 | 0 | 1.3 | |
Net (payment) proceeds from divestiture of discontinued operations | 0 | (1.3) | (1.3) | 9 |
Cash used for investing activities | (122.5) | (49) | (123.1) | (53.3) |
Financing activities | ||||
Proceeds from borrowings of debt | 6 | 725 | 1,050 | 270.8 |
Repayments of debt | (336.4) | (835.3) | (835.6) | (369) |
Repurchase of common stock | (59.3) | (20) | (100.7) | 0 |
Payment of common stock dividends | (28.8) | 0 | (9.8) | 0 |
Payment of preferred stock dividends | 0 | (17.4) | (17.4) | (23.2) |
Proceeds from exercise of stock options | 18.3 | 16.8 | 36 | 7.9 |
Taxes withheld and paid on employees' share-based payment awards | (9.4) | (7.6) | (7.6) | (3.2) |
Cash (used for) provided by financing activities | (409.6) | (138.5) | 114.9 | (116.7) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18 | (2.7) | (9.5) | (13.2) |
(Decrease) increase in cash, cash equivalents and restricted cash | (317.8) | (15.5) | 280.9 | 74.9 |
Cash, cash equivalents and restricted cash at beginning of period | 573.4 | 292.5 | 292.5 | 217.6 |
Cash, cash equivalents and restricted cash at end of period | 255.6 | 277 | 573.4 | 292.5 |
Eliminations | ||||
Operating activities | ||||
Cash provided by (used for) operating activities | 0 | 0 | 0 | |
Investing activities | ||||
Expenditures for property, plant and equipment | 0 | 0 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | |
Proceeds from dispositions of long-lived assets | 0 | 0 | 0 | |
Cash dividend from equity method investment | 0 | |||
Net (payment) proceeds from divestiture of discontinued operations | 0 | 0 | ||
Cash used for investing activities | 0 | 0 | 0 | |
Financing activities | ||||
Proceeds from borrowings of debt | 0 | 0 | 0 | |
Repayments of debt | 0 | 0 | 0 | |
Repurchase of common stock | 0 | 0 | ||
Payment of common stock dividends | 0 | 0 | ||
Payment of preferred stock dividends | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | 0 | |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 | 0 | |
Cash (used for) provided by financing activities | 0 | 0 | 0 | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
(Decrease) increase in cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 | |
Parent | Reportable Legal Entities | ||||
Operating activities | ||||
Cash provided by (used for) operating activities | 68.7 | 109.1 | 19.9 | |
Investing activities | ||||
Expenditures for property, plant and equipment | 0 | 0 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | |
Proceeds from dispositions of long-lived assets | 0 | 0 | 0 | |
Cash dividend from equity method investment | 0 | |||
Net (payment) proceeds from divestiture of discontinued operations | 0 | 0 | ||
Cash used for investing activities | 0 | 0 | 0 | |
Financing activities | ||||
Proceeds from borrowings of debt | 0 | 0 | 0 | |
Repayments of debt | 0 | 0 | 0 | |
Repurchase of common stock | (59.3) | (100.7) | ||
Payment of common stock dividends | (28.8) | (9.8) | ||
Payment of preferred stock dividends | (17.4) | (23.2) | ||
Proceeds from exercise of stock options | 18.3 | 36 | 7.9 | |
Taxes withheld and paid on employees' share-based payment awards | (9.4) | (7.6) | (3.2) | |
Cash (used for) provided by financing activities | (79.2) | (99.5) | (18.5) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
(Decrease) increase in cash, cash equivalents and restricted cash | (10.5) | 9.6 | 1.4 | |
Cash, cash equivalents and restricted cash at beginning of period | 11 | 1.4 | 1.4 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0.5 | 11 | 1.4 | |
Issuers | Reportable Legal Entities | ||||
Operating activities | ||||
Cash provided by (used for) operating activities | 249.9 | (149.2) | 75.2 | |
Investing activities | ||||
Expenditures for property, plant and equipment | 0 | 0 | 0 | |
Acquisitions, net of cash acquired | 0 | 0 | 0 | |
Proceeds from dispositions of long-lived assets | 0 | 0 | 0 | |
Cash dividend from equity method investment | 0 | |||
Net (payment) proceeds from divestiture of discontinued operations | 0 | 0 | ||
Cash used for investing activities | 0 | 0 | 0 | |
Financing activities | ||||
Proceeds from borrowings of debt | 0 | 975 | 0 | |
Repayments of debt | (250) | (825.7) | (75) | |
Repurchase of common stock | 0 | 0 | ||
Payment of common stock dividends | 0 | 0 | ||
Payment of preferred stock dividends | 0 | |||
Proceeds from exercise of stock options | 0 | 0 | 0 | |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 | 0 | |
Cash (used for) provided by financing activities | (250) | 149.3 | (75) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
(Decrease) increase in cash, cash equivalents and restricted cash | (0.1) | 0.1 | 0.2 | |
Cash, cash equivalents and restricted cash at beginning of period | 0.3 | 0.2 | 0.2 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0.2 | 0.3 | 0.2 | |
Guarantor Subsidiaries | Reportable Legal Entities | ||||
Operating activities | ||||
Cash provided by (used for) operating activities | (151.3) | 314 | 112.9 | |
Investing activities | ||||
Expenditures for property, plant and equipment | (16.7) | (30) | (33) | |
Acquisitions, net of cash acquired | (93.9) | (84.2) | (2) | |
Proceeds from dispositions of long-lived assets | 0.6 | 2.8 | 4.7 | |
Cash dividend from equity method investment | 0 | |||
Net (payment) proceeds from divestiture of discontinued operations | 0 | 3 | ||
Cash used for investing activities | (110) | (111.4) | (27.3) | |
Financing activities | ||||
Proceeds from borrowings of debt | 6 | 75 | 268 | |
Repayments of debt | (82) | (1.3) | (286.8) | |
Repurchase of common stock | 0 | 0 | ||
Payment of common stock dividends | 0 | 0 | ||
Payment of preferred stock dividends | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | 0 | |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 | 0 | |
Cash (used for) provided by financing activities | (76) | 73.7 | (18.8) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
(Decrease) increase in cash, cash equivalents and restricted cash | (337.3) | 276.3 | 66.8 | |
Cash, cash equivalents and restricted cash at beginning of period | 384 | 107.7 | 107.7 | 40.9 |
Cash, cash equivalents and restricted cash at end of period | 46.7 | 384 | 107.7 | |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||||
Operating activities | ||||
Cash provided by (used for) operating activities | 29 | 24.7 | 50.1 | |
Investing activities | ||||
Expenditures for property, plant and equipment | (11.6) | (11.4) | (11.9) | |
Acquisitions, net of cash acquired | (8.1) | (0.3) | (21.4) | |
Proceeds from dispositions of long-lived assets | 7.2 | 1.3 | 0 | |
Cash dividend from equity method investment | 1.3 | |||
Net (payment) proceeds from divestiture of discontinued operations | (1.3) | 6 | ||
Cash used for investing activities | (12.5) | (11.7) | (26) | |
Financing activities | ||||
Proceeds from borrowings of debt | 0 | 0 | 2.8 | |
Repayments of debt | (4.4) | (8.6) | (7.2) | |
Repurchase of common stock | 0 | 0 | ||
Payment of common stock dividends | 0 | 0 | ||
Payment of preferred stock dividends | 0 | 0 | ||
Proceeds from exercise of stock options | 0 | 0 | 0 | |
Taxes withheld and paid on employees' share-based payment awards | 0 | 0 | 0 | |
Cash (used for) provided by financing activities | (4.4) | (8.6) | (4.4) | |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 18 | (9.5) | (13.2) | |
(Decrease) increase in cash, cash equivalents and restricted cash | 30.1 | (5.1) | 6.5 | |
Cash, cash equivalents and restricted cash at beginning of period | 178.1 | $ 183.2 | 183.2 | 176.7 |
Cash, cash equivalents and restricted cash at end of period | $ 208.2 | $ 178.1 | $ 183.2 |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Feb. 04, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Subsequent Event [Line Items] | |||
Common stock dividend to be paid (in dollars per share) | $ 0.24 | $ 0.08 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock dividend to be paid (in dollars per share) | $ 0.09 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts - Schedule II (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Dec. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Valuation allowance for trade and notes receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 3.4 | $ 3.1 | $ 4.4 |
Charged to Costs and Expenses | 0.4 | 0.6 | (1.3) |
Acquired Obligations | 0 | 0.1 | 0.5 |
Charged to Other Accounts | 0 | (0.1) | 0 |
Deductions | (0.4) | (0.3) | (0.5) |
Balance at End of Year | 3.4 | 3.4 | 3.1 |
Valuation allowance for income taxes | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 39.4 | 32.4 | 23 |
Charged to Costs and Expenses | 0.1 | 1.3 | 13.3 |
Acquired Obligations | 0 | 0 | 0 |
Charged to Other Accounts | 0.3 | 6.8 | 2 |
Deductions | (2.3) | (1.1) | (5.9) |
Balance at End of Year | $ 37.5 | $ 39.4 | $ 32.4 |