Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-35475 | |
Entity Registrant Name | ZURN WATER SOLUTIONS CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-5197013 | |
Entity Address, Address Line One | 511 W. Freshwater Way | |
Entity Address, City or Town | Milwaukee, | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53204 | |
City Area Code | 855 | |
Local Phone Number | 480-5050 | |
Title of Each Class | Common Stock, $.01 par value | |
Trading Symbol(s) | ZWS | |
Name of Each Exchange on Which Registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 125,967,533 | |
Entity Central Index Key | 0001439288 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 73.2 | $ 96.6 |
Receivables, net | 172.1 | 144.1 |
Inventories | 224.3 | 184.5 |
Income tax receivable | 27.4 | 33.1 |
Other current assets | 23.1 | 16.5 |
Total current assets | 520.1 | 474.8 |
Property, plant and equipment, net | 63.1 | 64.4 |
Intangible assets, net | 176.9 | 179.1 |
Goodwill | 255 | 254.1 |
Insurance for asbestos claims | 66 | 66 |
Other assets | 37.5 | 39.3 |
Total assets | 1,118.6 | 1,077.7 |
Current liabilities: | ||
Current maturities of debt | 5.6 | 5.6 |
Trade payables | 113.7 | 105.1 |
Compensation and benefits | 6.6 | 22 |
Current portion of pension and postretirement benefit obligations | 1.3 | 1.3 |
Other current liabilities | 87.3 | 106.4 |
Total current liabilities | 214.5 | 240.4 |
Long-term debt | 532.9 | 533.9 |
Pension and postretirement benefit obligations | 56.7 | 57.3 |
Deferred income taxes | 7.7 | 3.1 |
Operating lease liability | 7.4 | 8.9 |
Reserve for asbestos claims | 66 | 66 |
Other liabilities | 39.7 | 41.7 |
Total liabilities | 924.9 | 951.3 |
Stockholders' equity: | ||
Common stock, $0.01 par value; 200,000,000 shares authorized; shares issued and outstanding: 125,847,069 at March 31, 2022 and 125,720,068 at December 31, 2021 | 1.3 | 1.3 |
Additional paid-in capital | 1,440.8 | 1,436.9 |
Retained deficit | (1,175.5) | (1,236.9) |
Accumulated other comprehensive loss | (72.9) | (74.9) |
Total stockholders' equity | 193.7 | 126.4 |
Total liabilities and stockholders' equity | $ 1,118.6 | $ 1,077.7 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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) | 125,847,069 | 125,720,068 |
Common stock, shares outstanding (in shares) | 125,847,069 | 125,720,068 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 239.6 | $ 205.2 |
Cost of sales | 137.7 | 116.8 |
Gross profit | 101.9 | 88.4 |
Selling, general and administrative expenses | 53.9 | 57.7 |
Restructuring and other similar charges | 1.1 | 0.6 |
Amortization of intangible assets | 3 | 6.1 |
Income from operations | 43.9 | 24 |
Non-operating expense: | ||
Interest expense, net | (4.8) | (9.6) |
Other income, net | 0.3 | 0.3 |
Income before income taxes | 39.4 | 14.7 |
Provision for income taxes | (10) | (4.7) |
Net income from continuing operations | 29.4 | 10 |
Income from discontinued operations, net of tax | 0.8 | 40 |
Net income attributable to Zurn common stockholders | $ 30.2 | $ 50 |
Basic net income per share: | ||
Continuing operations (in dollars per share) | $ 0.23 | $ 0.08 |
Discontinued operations (in dollars per share) | 0.01 | 0.33 |
Net income (in dollars per share) | 0.24 | 0.42 |
Diluted net income per share: | ||
Continuing operations (in dollars per share) | 0.23 | 0.08 |
Discontinued operations (in dollars per share) | 0.01 | 0.32 |
Net income (in dollars per share) | $ 0.24 | $ 0.40 |
Weighted-average number of shares outstanding (in thousands): | ||
Basic (in shares) | 126,281 | 119,808 |
Effect of dilutive equity awards (in shares) | 2,160 | 3,829 |
Diluted (in shares) | 128,441 | 123,637 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 30.2 | $ 50 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 2 | (1.7) |
Change in pension and postretirement defined benefit plans, net of tax | 0 | (0.1) |
Total comprehensive income | $ 32.2 | $ 48.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net income | $ 30.2 | $ 50 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation | 2.3 | 14.1 |
Amortization of intangible assets | 3 | 9.4 |
Deferred income taxes | 4.6 | (1.3) |
Other non-cash expenses | 0.5 | 0.7 |
Stock-based compensation expense | 3.9 | 14.8 |
Changes in operating assets and liabilities: | ||
Receivables | (27.7) | (36.9) |
Inventories | (39.6) | (19.9) |
Other assets | (1.1) | 3.1 |
Accounts payable | 8.4 | 50.7 |
Accruals and other | (38.4) | (13.4) |
Cash (used for) provided by operating activities | (53.9) | 71.3 |
Investing activities | ||
Expenditures for property, plant and equipment | (0.8) | (9.2) |
Acquisitions, net of cash acquired | 0 | 0.4 |
Proceeds from dispositions of long-lived assets | 1.3 | 0.7 |
Proceeds associated with divestiture of discontinued operations | 35 | 0 |
Cash provided by (used for) investing activities | 35.5 | (8.1) |
Financing activities | ||
Proceeds from borrowings of debt | 10 | 0 |
Repayments of debt | (11.4) | (0.5) |
Proceeds from exercise of stock options | 0.5 | 2.8 |
Taxes withheld and paid on employees' share-based payment awards | (0.5) | 0 |
Repurchase of common stock | 0 | (0.9) |
Payment of common stock dividends | (3.8) | (10.8) |
Cash used for financing activities | (5.2) | (9.4) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.2 | (2.1) |
(Decrease) increase in cash, cash equivalents and restricted cash | (23.4) | 51.7 |
Cash, cash equivalents and restricted cash at beginning of period | 96.6 | 255.6 |
Cash, cash equivalents and restricted cash at end of period | $ 73.2 | $ 307.3 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The unaudited condensed consolidated financial statements included herein have been prepared by Zurn Water Solutions Corporation (“Zurn” 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. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. In the opinion of management, the condensed consolidated financial statements include all adjustments necessary for a fair presentation of the results of operations for the interim periods. Results for the interim periods are not necessarily indicative of results that may be expected for the year ending December 31, 2022. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. Spin-Off of Process & Motion Control Segment On October 4, 2021, the Company completed a Reverse Morris Trust tax-free spin-off transaction (the “Spin-off Transaction”) in which (i) substantially all the assets and liabilities of the Company's PMC business were transferred to a newly created subsidiary, Land Newco, Inc. (“Land”), (ii) the shares of Land were distributed to the Company's stockholders pro rata, and (iii) Land was merged with a subsidiary of Regal Rexnord Corporation (formerly known as Regal Beloit Corporation), in which the stock of Land was converted into a specified number of shares of Regal Rexnord Corporation in accordance with the exchange ratio. Following completion of the Spin-Off Transaction, the Company's name was changed to “Zurn Water Solutions Corporation” and the ticker symbol for its shares of common stock trading on the New York Stock Exchange was changed to “ZWS”. As a result of the Spin-Off Transaction, in accordance with the authoritative guidance, the operating results of PMC are reported as discontinued operations in the condensed consolidated statements of operations for all prior periods presented. The condensed consolidated statements of cash flows has not been adjusted to separately disclose cash flows related to the discontinued operations. See Note 4, Discontinued Operations for additional information. The Company Zurn Water Solutions Corporation is a growth-oriented, pure-play water management business that designs, procures, manufactures, and markets what the Company believes to be the broadest sustainable product portfolio of specification-driven water management solutions to improve health, human safety and the environment. The Company's product portfolio includes professional grade water safety and control, flow systems and hygienic and environmental products for public and private spaces that deliver superior value to building owners, positively impact the environment and human hygiene and reduce product installation time. The Company's heritage of innovation and specification has allowed Zurn to provide highly-engineered, mission-critical solutions to customers for decades and affords Zurn the privilege of having long-term, valued relationships with market leaders. The Company operates in a disciplined way and the Zurn Business System (“ZBS”), described below, is its operating philosophy. Grounded in the spirit of continuous improvement, ZBS 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 the Company's business. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 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 amendments in this update provide optional expedients and exceptions for applying GAAP to instruments affected by reference rate reform if certain criteria are met. 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 three |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Three Months Ended March 31, 2022 On February 12, 2022, the Company entered into a definitive agreement to combine with Elkay Manufacturing Company (“Elkay”), pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Elkay, Zebra Merger Sub, Inc., a wholly-owned subsidiary of the Company (“Merger Sub”), and Elkay Interior Systems International, Inc., as representative of the stockholders of Elkay. The Merger Agreement provides that among other matters, and subject to the satisfaction or waiver of the conditions set forth in the Merger Agreement, Elkay would merge with Merger Sub, with Elkay surviving as a wholly-owned subsidiary of the Company (the “Merger”). Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Merger (the “Effective Time”), the Company will exchange, for 100% of the outstanding equity of Elkay, up to 52.5 million newly issued shares of the Company's common stock, which on a pro forma basis, assuming closing of the Merger on December 31, 2021 (and assuming no adjustments pursuant to the Merger Agreement), would have represented approximately 29% of the outstanding shares of the Company's common stock on a fully diluted basis as of such date (the “Merger Consideration”). The Company anticipates the Merger will close will close early in the third quarter of 2022. The closing of the Merger is subject to customary conditions, including, among others, the absence of laws or orders by a governmental authority enjoining or prohibiting the consummation of the transactions contemplated by the Merger Agreement; the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (“HSR”) (which waiting period expired on March 30, 2022); the required approvals by the respective stockholders of the Company and Elkay; a registration statement having become effective in accordance with the provisions of the Securities Act of 1933, as amended, and not being subject to any stop order suspending the registration statement (registration statement became effective on April 26, 2022); the shares of the Company's common stock to be issued in the Merger being approved for listing on the New York Stock Exchange as of the closing; the accuracy of the parties’ representations and warranties contained in the Merger Agreement (subject to certain materiality qualifications); the parties’ compliance with the covenants and agreements in the Merger Agreement in all material respects; and the absence of any material adverse effect on the Company or Elkay. Fiscal Year 2021 On November 17, 2021, the Company completed the acquisition of the Wade Drains business ("Wade Drains") from McWane, Inc. for a preliminary cash purchase price of $13.7 million, excluding transaction costs and net of cash acquired. The preliminary purchase price is subject to customary post-closing adjustments. Wade Drains manufactures a wide range of specified commercial plumbing products for customers across North America and complements the Company's existing flow systems product portfolio. On April 16, 2021, the Company acquired substantially all of the assets of Advance Technology Solutions, LLC (d/b/a ATS GREASEwatch) ("ATS GREASEwatch") for a cash purchase price of $4.5 million, excluding transaction costs and net of cash acquired. The Company paid $3.8 million to the sellers at closing, with the remaining $0.7 million payable to the sellers upon settlement of certain indemnities within two years of closing, ATS GREASEwatch develops, manufactures and markets remote tank monitoring devices, alarms, software and services for various applications and provides technology to enhance and expand our current product offerings. The acquisitions have been accounted for as business combinations and were recorded by allocating the purchase prices to the fair value of assets acquired and liabilities assumed at the acquisition dates. 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 these acquisitions resulted in tax deductible goodwill of $8.8 million, customer relationship intangibles assets of $1.6 million, trade working capital of $9.0 million and $(1.1) million of other net liabilities. The preliminary purchase price allocations will be completed within the one-year period following the acquisition dates. The Company's results of operations include the acquired operations subsequent to the acquisition dates. Pro-forma results of operations and certain other U.S. GAAP disclosures related to these acquisitions have not been presented because the acquisitions did not significantly impact the Company's condensed consolidated statements of operations or financial position. |
Restructuring and Other Similar
Restructuring and Other Similar Charges | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Similar Charges | Restructuring and Other Similar ChargesDuring the three months ended March 31, 2022, the Company continued to execute various restructuring actions. These initiatives were implemented to drive efficiencies and reduce operating costs while also modifying the Company's footprint to reflect changes in the markets it serves, the impact of acquisitions on the Company's overall manufacturing capacity and the refinement of its overall product portfolio. These restructuring actions primarily resulted in workforce reductions, lease termination costs, and other facility rationalization costs. Management expects to continue executing initiatives and select product-line rationalizations to optimize its operating margin and manufacturing footprint. As such, the Company expects further expenses related to workforce reductions, lease termination costs, and other facility rationalization costs. Since the Company’s evaluation of other potential restructuring actions are in process, related restructuring expenses, if any, are not yet estimable. The following table summarizes the Company's restructuring and other similar charges during the three months ended March 31, 2022 and March 31, 2021, (in millions): Three Months Ended March 31, 2022 March 31, 2021 Employee termination benefits $ 1.1 $ 0.6 Contract termination and other associated costs — — Total restructuring and other similar costs $ 1.1 $ 0.6 The following table summarizes the activity in the Company's restructuring accrual for the three months ended March 31, 2022 (in millions): Employee termination benefits Contract termination and other associated costs Total Accrued Restructuring Costs, December 31, 2021 (1) $ 2.4 $ — $ 2.4 Charges 1.1 — $ 1.1 Cash payments (2.2) — $ (2.2) Accrued Restructuring Costs, March 31, 2022 (1) $ 1.3 $ — $ 1.3 ____________________ (1) The restructuring accrual is included in other current liabilities in the condensed consolidated balance sheets. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued OperationsDuring the year ended December 31, 2021, the Company completed the Spin-Off Transaction of PMC. The operating results of PMC are reported as discontinued operations in the consolidated statements of operations for all prior periods presented, as the Spin-Off Transaction of PMC represented a strategic shift that had a major impact on operations and financial results. The condensed consolidated statements of cash flows for the three months ended March 31, 2021 has not been adjusted to separately disclose cash flows related to the discontinued operations. During the three months ended March 31, 2022, the Company received $35.0 million from Regal Rexnord Corporation as a result of the final working capital and cash balances at closing exceeded the targets stipulated within the Spin-Off Transaction agreement. The major components of the Income from discontinued operations, net of tax presented in the condensed consolidated statements of operations for the three months ended March 31, 2022 and March 31, 2021, are as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Net sales $ — $ 320.9 Cost of sales — (201.4) Selling, general and administrative expenses — (61.6) Amortization of intangible assets — (3.3) Interest expense, net — (1.4) Other expense, net — (0.7) Income from discontinued operations before income tax — 52.5 Income tax benefit (provision) 0.8 (12.5) Equity method investment income — 0.1 Non-controlling interest income — 0.1 Income from discontinued operations, net of tax $ 0.8 $ 40.0 The condensed consolidated statements of cash flows for the three months ended March 31, 2022 and March 31, 2021 have not been adjusted to separately disclose cash flows related to discontinued operations. However, the significant investing and financing cash flows and other significant non-cash operating items associated with the discontinued operations were as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Depreciation $ — $ 11.9 Amortization of intangible assets — 3.3 Loss on disposition of assets — 0.2 Deferred income taxes — 0.1 Other non-cash charges — 0.3 Stock-based compensation — 5.7 Expenditures for property, plant and equipment — (8.2) Proceeds from dispositions of long-lived assets — 0.7 Proceeds associated with divestiture of discontinued operations 35.0 — Repayments of debt — (0.5) Proceeds from exercise of stock options — 2.4 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
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 Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers . 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 following tables present the Company's revenue disaggregated by customer type and customer geography (in millions): Three Months Ended Customer Type March 31, 2022 March 31, 2021 Institutional $ 87.6 $ 76.4 Commercial 75.5 64.8 All other 76.5 64.0 Total $ 239.6 $ 205.2 Three Months Ended Geography March 31, 2022 March 31, 2021 United States $ 219.6 $ 185.7 Canada 15.1 14.5 Rest of world 4.9 5.0 Total $ 239.6 $ 205.2 Contract Balances For substantially all of the Company's 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. 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 as of March 31, 2022 and March 31, 2021 were not material. Backlog The Company had backlog of $100.8 million as of March 31, 2022, 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 99% of the backlog in the remaining nine months of the year ending December 31, 2022, and the remaining approximately 1% in 2023 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 March 31, 2022 and March 31, 2021, the contract assets capitalized, as well as amortization recognized in the three months ended March 31, 2022 and March 31, 2021, are not significant and no impairment losses were recognized. Allowance for Doubtful Accounts 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for all periods presented is based on an estimated effective income tax rate for the respective fiscal years. The estimated annual effective income tax rate is determined excluding the effect of significant discrete items or items that are reported net of their related tax effects. The tax effect of significant discrete items is reflected in the period in which they occur. The Company's income tax expense is impacted by a number of factors, including the amount of taxable earnings derived in foreign jurisdictions with tax rates that are generally higher than the U.S. federal statutory rate, state tax rates in the jurisdictions where the Company does business and the Company's ability to utilize various tax credits, capital loss and net operating loss (“NOL”) carryforwards. The Company regularly reviews its deferred tax assets for recoverability and valuation allowances are established based on historical losses, projected future taxable income and the expected timing of the reversals of existing temporary differences, as deemed appropriate. In addition, all other available positive and negative evidence is taken into consideration for purposes of determining the proper balances of such valuation allowances. As a result of this review, the Company continues to maintain a full valuation allowance against U.S. federal and state capital loss carryforwards and a partial valuation allowance against certain foreign NOL carryforwards and other related foreign deferred tax assets, as well as certain U.S. state NOL carryforwards. Future changes to the balances of these valuation allowances, as a result of this continued review and analysis by the Company, could result in a material impact to the financial statements for such period of change. The income tax provision was $10.0 million for the three months ended March 31, 2022, compared to $4.7 million for the three months ended March 31, 2021. The effective income tax rate for the three months ended March 31, 2022, was 25.4% versus 32.0% for the three months ended March 31, 2021. The effective income tax rate for the three months ended March 31, 2022 was above the U.S. federal statutory rate of 21% primarily due to the accrual of foreign income taxes, which are generally above the U.S. federal statutory rate, the accrual of additional income taxes associated with compensation deduction limitations under Section 162(m) of the Internal Revenue Code and the accrual of various state income taxes, partially offset by the recognition of certain previously unrecognized tax benefits due to the lapse of the applicable statutes of limitations and income tax benefits associated with share-based payments. The effective income tax rate for the three months ended March 31, 2021 was above the U.S. federal statutory rate of 21% primarily due to the accrual of foreign income taxes, which are generally above the U.S. federal statutory rate, the accrual of additional income taxes associated with compensation deduction limitations under Section 162(m) of the Internal Revenue Code, and the accrual of various state income taxes, partially offset by the recognition of income tax benefits associated with foreign-derived intangible income (“FDII”). The Company’s total liability for net unrecognized tax benefits as of March 31, 2022 and December 31, 2021 was $4.9 million and $5.9 million, respectively. The Company recognizes accrued interest and penalties related to unrecognized income tax benefits in income tax expense. As of March 31, 2022 and December 31, 2021, the total amount of gross, unrecognized income tax benefits included accrued interest and penalties of $0.3 million and $0.5 million, respectively. The Company recognized $(0.1) million and $0.0 million of net interest and penalties as income tax expense (benefit) during the three months ended March 31, 2022 and March 31, 2021, 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 foreign jurisdictions. During the nine month Transition Period ended December 31, 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. 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. Similarly, in accordance with the Spin-Off Transaction, the Company is required to indemnify Regal Rexnord |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic net income per share from continuing and discontinued operations attributable to Zurn common stockholders is computed by dividing net income from continuing operations and income from discontinued operations attributable to Zurn common stockholders, respectively, by the corresponding weighted average number of common shares outstanding for the period. Diluted net income per share from continuing and discontinued operations attributable to Zurn common stockholders is computed based on the weighted average number of common shares outstanding, increased by the number of incremental shares that would have been outstanding if the potential dilutive shares were issued through the exercise of outstanding stock options to purchase common shares, except when the effect would be anti-dilutive. The computation for diluted net income per share for the three months ended March 31, 2022 and March 31, 2021, excludes 0.2 million and 0.2 million common shares due to their anti-dilutive effects, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Stockholders' equity consists of the following (in millions): Common stock (1) Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interest (2) Total stockholders’ equity Balance at December 31, 2020 $ 1.2 $ 1,392.9 $ 116.0 $ (73.8) $ 3.0 $ 1,439.3 Total comprehensive income (loss) — — 50.0 (1.8) 0.1 48.3 Stock-based compensation expense — 14.2 — — — 14.2 Proceeds from exercise of stock options — 2.8 — — — 2.8 Repurchase of common stock — — (0.9) — — (0.9) Common stock dividends ($0.09 per share) — — (10.8) — — (10.8) Balance at March 31, 2021 $ 1.2 $ 1,409.9 $ 154.3 $ (75.6) $ 3.1 $ 1,492.9 Common stock (1) Additional Retained Accumulated Non-controlling interest Total Balance at December 31, 2021 $ 1.3 $ 1,436.9 $ (1,236.9) $ (74.9) $ — $ 126.4 Total comprehensive income — — 30.2 2.0 — 32.2 Stock-based compensation expense — 3.9 — — — 3.9 Proceeds from exercise of stock options — 0.5 — — — 0.5 Taxes withheld and paid on employees' share-based payment awards — (0.5) — — — (0.5) Proceeds associated with divestiture of discontinued operations — — 35.0 — — 35.0 Common stock dividends ($0.03 per share) — — (3.8) — — (3.8) Balance at March 31, 2022 $ 1.3 $ 1,440.8 $ (1,175.5) $ (72.9) $ — $ 193.7 ____________________ (1) During the three months ended March 31, 2022 and March 31, 2021, the Company issued 127,001 and 189,629 shares of common stock upon the exercise of stock options, vesting of restricted stock units, and for other common stock awards, respectively. (2) Non-controlling interest through the Spin-Off Transaction represents a 5% non-controlling interest in a PMC joint venture relationship. The Company has no remaining non-controlling interest subsequent to the Spin-Off Transaction. Prior year amounts disclosed within this note include amounts attributable to the Company's discontinued operations, unless otherwise noted. Refer to Note 4 Discontinued Operations for further detail. Share Repurchase Program During fiscal 2015, the Company's Board of Directors approved a common stock repurchase program (the "Repurchase Program") authorizing the repurchase of up to $200.0 million of the Company's common stock from time to time on the open market or in privately negotiated transactions. On January 27, 2020, the Company's Board of Directors approved increasing 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. The Company did not repurchase any shares during the three months ended March 31, 2022. During the three months ended March 31, 2021, the Company repurchased 22,300 shares of common stock at a total cost of $0.9 million at a weighted average price of $39.27 per share. The repurchased shares were canceled by the Company upon receipt. A total of approximately $162.8 million of the existing authority remained under the Repurchase Program at March 31, 2022 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2022, are as follows (in millions): Foreign Currency Translation and Other Pension and Postretirement Plans Total Balance at December 31, 2021 $ (70.9) $ (4.0) $ (74.9) Other comprehensive loss before reclassifications 2.0 — 2.0 Amounts reclassified from accumulated other comprehensive loss — — — Net current period other comprehensive income 2.0 — 2.0 Balance at March 31, 2022 $ (68.9) $ (4.0) $ (72.9) The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the three months ended March 31, 2022 and March 31, 2021 (in millions): Three Months Ended March 31, 2022 March 31, 2021 Income Statement Line Pension and other postretirement plans Amortization of prior service credit $ — $ (0.1) Other income, net Provision for income taxes — — Total net of tax $ — $ (0.1) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The major classes of inventories are summarized as follows (in millions): March 31, 2022 December 31, 2021 Finished goods $ 200.8 $ 169.1 Work in progress 4.4 5.1 Raw materials 20.6 14.6 Inventories at First-in, First-Out ("FIFO") cost 225.8 188.8 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost (1.5) (4.3) $ 224.3 $ 184.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
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 three months ended March 31, 2022, are presented below (in millions): Net carrying amount as of December 31, 2021 $ 254.1 Currency translation adjustments 0.9 Net carrying amount as of March 31, 2022 $ 255.0 The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2022 and December 31, 2021 are as follows (in millions): March 31, 2022 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 9 years $ 25.1 $ (22.4) $ 2.7 Customer relationships (including distribution network) 15 years 351.7 (271.8) 79.9 Tradenames 12 years 11.5 (4.3) 7.2 Intangible assets not subject to amortization - trademarks and tradenames 87.1 — 87.1 Total intangible assets, net 15 years $ 475.4 $ (298.5) $ 176.9 December 31, 2021 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 9 years $ 24.9 $ (22.4) $ 2.5 Customer relationships (including distribution network) 15 years 351.1 (269.1) 82.0 Tradenames 13 years 11.5 (4.0) 7.5 Intangible assets not subject to amortization - trademarks and tradenames 87.1 — 87.1 Total intangible assets, net 15 years $ 474.6 $ (295.5) $ 179.1 Intangible asset amortization expense totaled $3.0 million and $6.1 million for the three months ended March 31, 2022 and March 31, 2021, respectively. Customer relationships acquired during the year ended December 31, 2021 were assigned a weighted-average useful life of 10 years. There were no intangible assets acquired during the three months ended March 31, 2022. The Company expects to recognize amortization expense on the intangible assets subject to amortization of $7.9 million in the year ending December 31, 2022 (inclusive of the $3.0 million of amortization expense recognized in the three months ended March 31, 2022), $6.5 million in 2023, $6.5 million in 2024, $6.5 million in 2025, $6.3 million in 2026 and $6.3 million in 2027. |
Other Current Liabilities
Other Current Liabilities | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities are summarized as follows (in millions): March 31, 2022 December 31, 2021 Commissions $ 8.5 $ 8.1 Current portion of operating lease liability 6.2 6.1 Income taxes payable 1.9 2.1 Legal and environmental 3.0 3.0 Product warranty (1) 1.3 1.3 Restructuring and other similar charges (2) 1.3 2.4 Risk management (3) 11.0 11.3 Sales rebates 23.5 38.6 Taxes payable on behalf of PMC 21.9 21.9 Taxes, other than income taxes 1.6 1.8 Other 7.1 9.8 $ 87.3 $ 106.4 ____________________ (1) See more information related to the product warranty obligations within Note 15, Commitments and Contingencies. (2) See more information related to the restructuring obligations within Note 3, Restructuring and Other Similar Charges. (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt is summarized as follows (in millions): March 31, 2022 December 31, 2021 Term loan (1) $ 538.2 $ 539.2 Finance leases and other subsidiary debt (2) 0.3 0.3 Total 538.5 539.5 Less current maturities 5.6 5.6 Long-term debt $ 532.9 533.9 ____________________ (1) Includes unamortized debt issuance costs of $10.4 million and $10.8 million at March 31, 2022 and December 31, 2021, respectively. (2) Refer to Note 14, Leases, to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for further information regarding leases. Senior Secured Credit Facility On October 4, 2021, ZBS Global, Inc. (“Holdings”), Zurn Holdings, Inc., Zurn LLC (together, the “Borrowers”), the lenders from time to time party thereto, and Credit Suisse AG, Cayman Islands Branch, as administrative agent for the lenders (in such capacity, the “Administrative Agent”) entered into a Fourth Amended and Restated First Lien Credit Agreement (the “Credit Agreement”). The Credit Agreement is funded by a syndicate of banks and other financial institutions and provides for (i) a $550.0 million term loan facility (the “Term Loan”) and (ii) a $200.0 million revolving credit facility (the “Revolving Credit Facility”). The obligations under the Credit Agreement and related documents are secured by liens on substantially all of the assets of Holdings, the Borrowers, and certain subsidiaries of the Borrowers pursuant to a Third Amended and Restated Guarantee and Collateral Agreement, dated as of October 4, 2021, among Holdings, the Borrowers, the subsidiaries of the Borrowers party thereto, and the Administrative Agent, and certain other collateral documents. The Credit Agreement contains representations, warranties, covenants and events of default, including, without limitation, a financial covenant under which the Borrowers are, if certain conditions are met, obligated to maintain on a consolidated basis, as of the end of each fiscal quarter, a certain maximum Net First Lien Leverage Ratio (as defined in the Credit Agreement). As of March 31, 2022, the Borrowers were in compliance with all applicable covenants under the Credit Agreement. Term Debt The Term Loan has a maturity date of October 4, 2028. Commencing on March 31, 2022, the Borrowers are required to make quarterly payments of principal in an amount equal to $1.4 million on each quarter until the maturity date. The Term Loan bears interest at the Borrowers’ option, by reference to a base rate or a rate based on LIBOR, in either case, plus an applicable margin determined quarterly based on the Borrowers’ Net First Lien Leverage Ratio as of the last day of each fiscal quarter. If the Net First Lien Leverage Ratio is greater than 1.80 to 1.00, the applicable margin shall equal 1.25% in the case of base rate borrowings and 2.25% in the case of LIBOR borrowings. In the event the Borrowers’ Net First Lien Leverage Ratio is less than or equal to 1.80 to 1.0, the applicable margin on both base rate and LIBOR borrowings would decrease by 0.25%. The Borrowers’ Net First Lien Leverage Ratio was 2.36 to 1.0 as of March 31, 2022. Certain prepayments of the Term Loan occurring on or prior to April 4, 2022 are subject to a 1.00% prepayment penalty. At March 31, 2022 and for the three months ended, the borrowings under the Term Loan had weighted-average effective interest rates of 2.75% and 2.75%, respectively. Revolving Credit Facility The Credit Agreement includes a $200.0 million revolving credit facility that has a maturity date of October 2, 2026. Borrowings under the Revolving Credit Facility bear interest at the Borrowers’ option, by reference to a base rate or a rate based on LIBOR, in either case, plus an applicable margin determined quarterly based on the Borrowers’ Net First Lien Leverage Ratio as of the last day of each fiscal quarter. If the Net First Lien Leverage Ratio is greater than 2.00 to 1.00, the applicable margin shall equal 1.00% in the case of base rate borrowings and 2.00% in the case of LIBOR borrowings. In the event the Borrowers' Net First Lien Leverage Ratio is less than or equal to 2.00 to 1.00, the applicable margin on both base rate and LIBOR borrowings would decrease by 0.25%. The Borrowers’ Net First Lien Leverage Ratio was 2.36 to 1.0 as of March 31, 2022. The Borrowers are also required to pay a quarterly commitment fee on the average daily unused portion of the Revolving Credit Facility for each fiscal quarter and fees in connection with the issuance of letters of credit. If the Net First Lien Leverage Ratio is greater than 2.00 to 1.00, the commitment fee shall equal 0.50%, and if the Company's Net First Lien Leverage Ratio is less than or equal to 2.00 to 1.00, the commitment fee shall equal 0.375%. At March 31, 2022 and December 31, 2021, there were no amounts borrowed under the Revolving Credit Facility. As of March 31, 2022 and December 31, 2021, $6.1 million and $6.1 million of the Revolving Credit Facility were considered utilized in connection with outstanding letters of credit, respectively. Finance leases and other subsidiary debt At March 31, 2022 and December 31, 2021, various wholly owned subsidiaries had additional debt of $0.3 million and $0.3 million, respectively, comprised primarily of finance lease obligations. See Note 14, Leases in the audited consolidated financial statements of the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for further information regarding leases. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. ASC 820 also specifies a fair value hierarchy based upon the observability of inputs used in valuation techniques. Observable inputs (highest level) reflect market data obtained from independent sources, while unobservable inputs (lowest level) reflect internally developed assumptions about the assumptions a market participant would use. In accordance with ASC 820, fair value measurements are classified under the following hierarchy: • Level 1 - Quoted prices for identical instruments in active markets. • Level 2 - Quoted prices for similar instruments; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs or significant value-drivers are observable. • Level 3 - Model-derived valuations in which one or more inputs or value-drivers are both significant to the fair value measurement and unobservable. If applicable, the Company uses quoted market prices in active markets to determine fair value, and therefore classifies such measurements within Level 1. In some cases where market prices are not available, the Company makes use of observable market based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters. These measurements are classified within Level 3 if they use significant unobservable inputs. Fair Value of Financial Instruments The Company has a nonqualified deferred compensation plan where assets are invested in mutual funds and corporate-owned life insurance contracts held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for the mutual funds, which are measured using quoted prices of identical instruments in active markets categorized as Level 1. Corporate-owned life insurance contracts are recorded at cash surrender value, which is provided by a third party and reflects the net asset value of the underlying publicly traded mutual funds categorized as Level 2. The deferred compensation plan assets are classified within other assets on the condensed consolidated balance sheets. Deferred compensation plan liabilities are measured at fair value based on quoted prices of identical instruments to the investment vehicles selected by the participants categorized as Level 1. Deferred compensation plan liabilities are classified within other liabilities on the condensed consolidated balance sheets. The following table provides a summary of the Company's assets and liabilities that were recognized at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 (in millions): Fair Value as of March 31, 2022 Level 1 Level 2 Level 3 Total Deferred compensation plan assets $ 1.8 $ 13.2 $ — $ 15.0 Deferred compensation plan liabilities 15.9 — — 15.9 Fair Value as of December 31, 2021 Level 1 Level 2 Level 3 Total Deferred compensation plan assets $ 0.9 $ 14.4 $ — $ 15.3 Deferred compensation plan liabilities 16.3 — — 16.3 There were no transfers of assets between levels at March 31, 2022 and December 31, 2021, respectively. Fair Value of Non-Derivative Financial Instruments The carrying amounts of cash, receivables, payables and accrued liabilities approximated fair value at March 31, 2022 and December 31, 2021, due to the short-term nature of those instruments. The fair value of long-term debt as of March 31, 2022 and December 31, 2021, was approximately $545.5 million and $552.4 million, respectively. The fair value is based on quoted market prices for the same instruments. 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties: 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 (in millions): Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 1.3 $ 1.2 Charged to operations 0.2 0.6 Claims settled (0.2) (0.3) Balance at end of period $ 1.3 $ 1.5 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. Certain Company subsidiaries are subject to asbestos litigation. As of March 31, 2022, 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 March 31, 2022, 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 $66.0 million, of which Zurn expects its insurance carriers to pay approximately $49.0 million in the next ten years on such claims, with the balance of the estimated liability being paid in subsequent years. The $66.0 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 reserve for asbestos claims within the condensed consolidated balance sheets. Management estimates that its available insurance to cover this potential asbestos liability as of March 31, 2022 is in excess of the ten year estimated exposure, and accordingly, believes that all current claims are covered by insurance. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The components of net periodic benefit cost are as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Pension Benefits: Service cost $ — $ 0.1 Interest cost 2.1 3.7 Expected return on plan assets (2.4) (4.9) Net periodic benefit cost $ (0.3) $ (1.1) Other Postretirement Benefits: Interest cost $ 0.1 $ 0.1 Amortization: Prior service credit — (0.1) Net periodic benefit cost $ 0.1 $ — The service cost component of net periodic benefits is presented within Cost of sales and Selling, general and administrative expenses in the condensed consolidated statements of operations, while the other components of net periodic benefit cost are presented within Other 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). During the three months ended March 31, 2022 and March 31, 2021, the Company made contributions of $0.2 million and $0.1 million, respectively, to its qualified pension plan trusts. Prior year amounts disclosed within this note include amounts attributable to the Company's discontinued operations, unless otherwise noted. Refer to Note 4 Discontinued Operations for further detail. See Note 16, Retirement Benefits, to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for further information regarding retirement benefits. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Zurn Water Solutions Corporation Performance Incentive Plan (the "Plan") is utilized to provide performance incentives to the Company's officers, employees, directors and certain others by permitting grants of equity awards (for common stock), as well as performance-based cash awards, to such persons to encourage them to maximize Zurn's performance and create value for Zurn's stockholders. For the three months ended March 31, 2022 and March 31, 2021, the Company recognized $3.9 million and $9.1 million of stock-based compensation expense, respectively. During the three months ended March 31, 2022, the Company granted the following restricted stock units, performance stock units and common stock to directors, executive officers, and certain other employees: Award Type Number of Awards Weighted Average Grant-Date Fair Value Restricted stock units 7,406 $ 33.17 Performance stock units 5,244 $ 33.37 Common stock 13,796 $ 35.50 See Note 15, Stock-Based Compensation, to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021, for further information regarding stock-based compensation. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 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 amendments in this update provide optional expedients and exceptions for applying GAAP to instruments affected by reference rate reform if certain criteria are met. 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 three |
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 Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers . 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 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 |
Fair Value of Financial Instruments | The Company has a nonqualified deferred compensation plan where assets are invested in mutual funds and corporate-owned life insurance contracts held in a rabbi trust, which is restricted for payments to participants of the plan. The Company has elected to use the fair value option for the mutual funds, which are measured using quoted prices of identical instruments in active markets categorized as Level 1. Corporate-owned life insurance contracts are recorded at cash surrender value, which is provided by a third party and reflects the net asset value of the underlying publicly traded mutual funds categorized as Level 2. The deferred compensation plan assets are classified within other assets on the condensed consolidated balance sheets. Deferred compensation plan liabilities are measured at fair value based on quoted prices of identical instruments to the investment vehicles selected by the participants categorized as Level 1. Deferred compensation plan liabilities are classified within other liabilities on the condensed consolidated balance sheets.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. |
Restructuring and Other Simil_2
Restructuring and Other Similar Charges (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table summarizes the Company's restructuring and other similar charges during the three months ended March 31, 2022 and March 31, 2021, (in millions): Three Months Ended March 31, 2022 March 31, 2021 Employee termination benefits $ 1.1 $ 0.6 Contract termination and other associated costs — — Total restructuring and other similar costs $ 1.1 $ 0.6 |
Summary of Activity in Restructuring Accrual | The following table summarizes the activity in the Company's restructuring accrual for the three months ended March 31, 2022 (in millions): Employee termination benefits Contract termination and other associated costs Total Accrued Restructuring Costs, December 31, 2021 (1) $ 2.4 $ — $ 2.4 Charges 1.1 — $ 1.1 Cash payments (2.2) — $ (2.2) Accrued Restructuring Costs, March 31, 2022 (1) $ 1.3 $ — $ 1.3 ____________________ (1) The restructuring accrual is included in other current liabilities in the condensed consolidated balance sheets. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The major components of the Income from discontinued operations, net of tax presented in the condensed consolidated statements of operations for the three months ended March 31, 2022 and March 31, 2021, are as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Net sales $ — $ 320.9 Cost of sales — (201.4) Selling, general and administrative expenses — (61.6) Amortization of intangible assets — (3.3) Interest expense, net — (1.4) Other expense, net — (0.7) Income from discontinued operations before income tax — 52.5 Income tax benefit (provision) 0.8 (12.5) Equity method investment income — 0.1 Non-controlling interest income — 0.1 Income from discontinued operations, net of tax $ 0.8 $ 40.0 The condensed consolidated statements of cash flows for the three months ended March 31, 2022 and March 31, 2021 have not been adjusted to separately disclose cash flows related to discontinued operations. However, the significant investing and financing cash flows and other significant non-cash operating items associated with the discontinued operations were as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Depreciation $ — $ 11.9 Amortization of intangible assets — 3.3 Loss on disposition of assets — 0.2 Deferred income taxes — 0.1 Other non-cash charges — 0.3 Stock-based compensation — 5.7 Expenditures for property, plant and equipment — (8.2) Proceeds from dispositions of long-lived assets — 0.7 Proceeds associated with divestiture of discontinued operations 35.0 — Repayments of debt — (0.5) Proceeds from exercise of stock options — 2.4 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present the Company's revenue disaggregated by customer type and customer geography (in millions): Three Months Ended Customer Type March 31, 2022 March 31, 2021 Institutional $ 87.6 $ 76.4 Commercial 75.5 64.8 All other 76.5 64.0 Total $ 239.6 $ 205.2 Three Months Ended Geography March 31, 2022 March 31, 2021 United States $ 219.6 $ 185.7 Canada 15.1 14.5 Rest of world 4.9 5.0 Total $ 239.6 $ 205.2 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity | Stockholders' equity consists of the following (in millions): Common stock (1) Additional paid-in capital Retained earnings Accumulated other comprehensive loss Non-controlling interest (2) Total stockholders’ equity Balance at December 31, 2020 $ 1.2 $ 1,392.9 $ 116.0 $ (73.8) $ 3.0 $ 1,439.3 Total comprehensive income (loss) — — 50.0 (1.8) 0.1 48.3 Stock-based compensation expense — 14.2 — — — 14.2 Proceeds from exercise of stock options — 2.8 — — — 2.8 Repurchase of common stock — — (0.9) — — (0.9) Common stock dividends ($0.09 per share) — — (10.8) — — (10.8) Balance at March 31, 2021 $ 1.2 $ 1,409.9 $ 154.3 $ (75.6) $ 3.1 $ 1,492.9 Common stock (1) Additional Retained Accumulated Non-controlling interest Total Balance at December 31, 2021 $ 1.3 $ 1,436.9 $ (1,236.9) $ (74.9) $ — $ 126.4 Total comprehensive income — — 30.2 2.0 — 32.2 Stock-based compensation expense — 3.9 — — — 3.9 Proceeds from exercise of stock options — 0.5 — — — 0.5 Taxes withheld and paid on employees' share-based payment awards — (0.5) — — — (0.5) Proceeds associated with divestiture of discontinued operations — — 35.0 — — 35.0 Common stock dividends ($0.03 per share) — — (3.8) — — (3.8) Balance at March 31, 2022 $ 1.3 $ 1,440.8 $ (1,175.5) $ (72.9) $ — $ 193.7 ____________________ (1) During the three months ended March 31, 2022 and March 31, 2021, the Company issued 127,001 and 189,629 shares of common stock upon the exercise of stock options, vesting of restricted stock units, and for other common stock awards, respectively. (2) Non-controlling interest through the Spin-Off Transaction represents a 5% non-controlling interest in a PMC joint venture relationship. The Company has no remaining non-controlling interest subsequent to the Spin-Off Transaction. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss, net of tax, for the three months ended March 31, 2022, are as follows (in millions): Foreign Currency Translation and Other Pension and Postretirement Plans Total Balance at December 31, 2021 $ (70.9) $ (4.0) $ (74.9) Other comprehensive loss before reclassifications 2.0 — 2.0 Amounts reclassified from accumulated other comprehensive loss — — — Net current period other comprehensive income 2.0 — 2.0 Balance at March 31, 2022 $ (68.9) $ (4.0) $ (72.9) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table summarizes the amounts reclassified from accumulated other comprehensive loss to net income during the three months ended March 31, 2022 and March 31, 2021 (in millions): Three Months Ended March 31, 2022 March 31, 2021 Income Statement Line Pension and other postretirement plans Amortization of prior service credit $ — $ (0.1) Other income, net Provision for income taxes — — Total net of tax $ — $ (0.1) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory, Net [Abstract] | |
Summary of Major Classes of Inventories | The major classes of inventories are summarized as follows (in millions): March 31, 2022 December 31, 2021 Finished goods $ 200.8 $ 169.1 Work in progress 4.4 5.1 Raw materials 20.6 14.6 Inventories at First-in, First-Out ("FIFO") cost 225.8 188.8 Adjustment to state inventories at Last-in, First-Out ("LIFO") cost (1.5) (4.3) $ 224.3 $ 184.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The changes in the net carrying value of goodwill for the three months ended March 31, 2022, are presented below (in millions): Net carrying amount as of December 31, 2021 $ 254.1 Currency translation adjustments 0.9 Net carrying amount as of March 31, 2022 $ 255.0 |
Schedule of Gross Carrying Amount and Accumulated Amortization for Finite-Lived Intangible Assets | The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2022 and December 31, 2021 are as follows (in millions): March 31, 2022 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 9 years $ 25.1 $ (22.4) $ 2.7 Customer relationships (including distribution network) 15 years 351.7 (271.8) 79.9 Tradenames 12 years 11.5 (4.3) 7.2 Intangible assets not subject to amortization - trademarks and tradenames 87.1 — 87.1 Total intangible assets, net 15 years $ 475.4 $ (298.5) $ 176.9 December 31, 2021 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 9 years $ 24.9 $ (22.4) $ 2.5 Customer relationships (including distribution network) 15 years 351.1 (269.1) 82.0 Tradenames 13 years 11.5 (4.0) 7.5 Intangible assets not subject to amortization - trademarks and tradenames 87.1 — 87.1 Total intangible assets, net 15 years $ 474.6 $ (295.5) $ 179.1 |
Schedule of Gross Carrying Amount and Accumulated Amortization for Infinite-Lived Intangible Assets | The gross carrying amount and accumulated amortization for each major class of identifiable intangible assets as of March 31, 2022 and December 31, 2021 are as follows (in millions): March 31, 2022 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 9 years $ 25.1 $ (22.4) $ 2.7 Customer relationships (including distribution network) 15 years 351.7 (271.8) 79.9 Tradenames 12 years 11.5 (4.3) 7.2 Intangible assets not subject to amortization - trademarks and tradenames 87.1 — 87.1 Total intangible assets, net 15 years $ 475.4 $ (298.5) $ 176.9 December 31, 2021 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Patents 9 years $ 24.9 $ (22.4) $ 2.5 Customer relationships (including distribution network) 15 years 351.1 (269.1) 82.0 Tradenames 13 years 11.5 (4.0) 7.5 Intangible assets not subject to amortization - trademarks and tradenames 87.1 — 87.1 Total intangible assets, net 15 years $ 474.6 $ (295.5) $ 179.1 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Current Liabilities | Other current liabilities are summarized as follows (in millions): March 31, 2022 December 31, 2021 Commissions $ 8.5 $ 8.1 Current portion of operating lease liability 6.2 6.1 Income taxes payable 1.9 2.1 Legal and environmental 3.0 3.0 Product warranty (1) 1.3 1.3 Restructuring and other similar charges (2) 1.3 2.4 Risk management (3) 11.0 11.3 Sales rebates 23.5 38.6 Taxes payable on behalf of PMC 21.9 21.9 Taxes, other than income taxes 1.6 1.8 Other 7.1 9.8 $ 87.3 $ 106.4 ____________________ (1) See more information related to the product warranty obligations within Note 15, Commitments and Contingencies. (2) See more information related to the restructuring obligations within Note 3, Restructuring and Other Similar Charges. (3) Includes projected liabilities related to losses arising from automobile, general and product liability claims. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt is summarized as follows (in millions): March 31, 2022 December 31, 2021 Term loan (1) $ 538.2 $ 539.2 Finance leases and other subsidiary debt (2) 0.3 0.3 Total 538.5 539.5 Less current maturities 5.6 5.6 Long-term debt $ 532.9 533.9 ____________________ (1) Includes unamortized debt issuance costs of $10.4 million and $10.8 million at March 31, 2022 and December 31, 2021, respectively. (2) Refer to Note 14, Leases, to the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021 for further information regarding leases. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Recognized at Fair Value on a Recurring Basis | The following table provides a summary of the Company's assets and liabilities that were recognized at fair value on a recurring basis as of March 31, 2022 and December 31, 2021 (in millions): Fair Value as of March 31, 2022 Level 1 Level 2 Level 3 Total Deferred compensation plan assets $ 1.8 $ 13.2 $ — $ 15.0 Deferred compensation plan liabilities 15.9 — — 15.9 Fair Value as of December 31, 2021 Level 1 Level 2 Level 3 Total Deferred compensation plan assets $ 0.9 $ 14.4 $ — $ 15.3 Deferred compensation plan liabilities 16.3 — — 16.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table presents changes in the Company’s product warranty liability (in millions): Three Months Ended March 31, 2022 March 31, 2021 Balance at beginning of period $ 1.3 $ 1.2 Charged to operations 0.2 0.6 Claims settled (0.2) (0.3) Balance at end of period $ 1.3 $ 1.5 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | The components of net periodic benefit cost are as follows (in millions): Three Months Ended March 31, 2022 March 31, 2021 Pension Benefits: Service cost $ — $ 0.1 Interest cost 2.1 3.7 Expected return on plan assets (2.4) (4.9) Net periodic benefit cost $ (0.3) $ (1.1) Other Postretirement Benefits: Interest cost $ 0.1 $ 0.1 Amortization: Prior service credit — (0.1) Net periodic benefit cost $ 0.1 $ — |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Share-Based Payments | During the three months ended March 31, 2022, the Company granted the following restricted stock units, performance stock units and common stock to directors, executive officers, and certain other employees: Award Type Number of Awards Weighted Average Grant-Date Fair Value Restricted stock units 7,406 $ 33.17 Performance stock units 5,244 $ 33.37 Common stock 13,796 $ 35.50 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) shares in Millions, $ in Millions | Feb. 12, 2022 | Nov. 17, 2021 | Apr. 16, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 255 | $ 254.1 | |||
McWane Assets Acquisition | |||||
Business Acquisition [Line Items] | |||||
Purchase price, net of cash acquired | $ 13.7 | ||||
Elkay Manufacturing Company | |||||
Business Acquisition [Line Items] | |||||
Percentage of outstanding equity in entity | 100.00% | ||||
Issued shares (in shares) | 52.5 | ||||
Percent interest of the stock | 29.00% | ||||
Advance Technology Solutions, LLC | |||||
Business Acquisition [Line Items] | |||||
Payments to acquire business | $ 4.5 | ||||
Preliminary cash purchase price | 3.8 | ||||
Consideration transferred payable | $ 0.7 | ||||
Cash purchase price payable period | 2 years | ||||
Goodwill | $ 8.8 | ||||
Other intangible assets | 1.6 | ||||
Trade working capital | 9 | ||||
Other liabilities | $ (1.1) |
Restructuring and Other Simil_3
Restructuring and Other Similar Charges - By Operating Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other similar costs | $ 1.1 | $ 0.6 |
Employee termination benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other similar costs | 1.1 | 0.6 |
Contract termination and other associated costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring and other similar costs | $ 0 | $ 0 |
Restructuring and Other Simil_4
Restructuring and Other Similar Charges - Restructuring Reserve Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Accrued Restructuring Costs, Beginning of Period | $ 2.4 | |
Charges | 1.1 | $ 0.6 |
Cash payments | (2.2) | |
Accrued Restructuring Costs, End of Period | 1.3 | |
Employee termination benefits | ||
Restructuring Reserve [Roll Forward] | ||
Accrued Restructuring Costs, Beginning of Period | 2.4 | |
Charges | 1.1 | 0.6 |
Cash payments | (2.2) | |
Accrued Restructuring Costs, End of Period | 1.3 | |
Contract termination and other associated costs | ||
Restructuring Reserve [Roll Forward] | ||
Accrued Restructuring Costs, Beginning of Period | 0 | |
Charges | 0 | $ 0 |
Cash payments | 0 | |
Accrued Restructuring Costs, End of Period | $ 0 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Discontinued Operations, Disposed of by Sale | Process & Motion Control | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Working capital | $ 35 |
Discontinued Operations - Incom
Discontinued Operations - Income From Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Income from discontinued operations, net of tax | $ 0.8 | $ 40 |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 0 | |
Cost of sales | 0 | |
Selling, general and administrative expenses | 0 | |
Amortization of intangible assets | 0 | |
Interest expense, net | 0 | |
Other expense, net | 0 | |
Income from discontinued operations before income tax | 0 | |
Income tax benefit (provision) | 0.8 | |
Equity method investment income | 0 | |
Non-controlling interest income | 0 | |
Income from discontinued operations, net of tax | $ 0.8 | |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 320.9 | |
Cost of sales | (201.4) | |
Selling, general and administrative expenses | (61.6) | |
Amortization of intangible assets | (3.3) | |
Interest expense, net | (1.4) | |
Other expense, net | (0.7) | |
Income from discontinued operations before income tax | 52.5 | |
Income tax benefit (provision) | (12.5) | |
Equity method investment income | 0.1 | |
Non-controlling interest income | 0.1 | |
Income from discontinued operations, net of tax | $ 40 |
Discontinued Operations - Other
Discontinued Operations - Other Significant Operating Non-Cash Items (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation | $ 2.3 | $ 14.1 |
Amortization of intangible assets | 3 | 9.4 |
Deferred income taxes | 4.6 | (1.3) |
Other non-cash expenses | 0.5 | 0.7 |
Stock-based compensation expense | 3.9 | 14.8 |
Repayments of debt | (11.4) | (0.5) |
Proceeds from exercise of stock options | 0.5 | 2.8 |
Discontinued Operations, Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation | 0 | |
Amortization of intangible assets | 0 | |
Loss on disposition of assets | 0 | |
Deferred income taxes | 0 | |
Other non-cash expenses | 0 | |
Stock-based compensation expense | 0 | |
Expenditures for property, plant and equipment | 0 | |
Proceeds from dispositions of long-lived assets | 0 | |
Proceeds associated with divestiture of discontinued operations | 35 | |
Repayments of debt | 0 | |
Proceeds from exercise of stock options | $ 0 | |
Discontinued Operations, Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation | 11.9 | |
Amortization of intangible assets | 3.3 | |
Loss on disposition of assets | 0.2 | |
Deferred income taxes | 0.1 | |
Other non-cash expenses | 0.3 | |
Stock-based compensation expense | 5.7 | |
Expenditures for property, plant and equipment | (8.2) | |
Proceeds from dispositions of long-lived assets | 0.7 | |
Proceeds associated with divestiture of discontinued operations | 0 | |
Repayments of debt | (0.5) | |
Proceeds from exercise of stock options | $ 2.4 |
Revenue Recognition - Revenue D
Revenue Recognition - Revenue Disaggregated by Customer Type and Geography (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total | $ 239.6 | $ 205.2 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total | 219.6 | 185.7 |
Canada | ||
Disaggregation of Revenue [Line Items] | ||
Total | 15.1 | 14.5 |
Rest of world | ||
Disaggregation of Revenue [Line Items] | ||
Total | 4.9 | 5 |
Institutional | ||
Disaggregation of Revenue [Line Items] | ||
Total | 87.6 | 76.4 |
Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Total | 75.5 | 64.8 |
All other | ||
Disaggregation of Revenue [Line Items] | ||
Total | $ 76.5 | $ 64 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percent of contract billed | 100.00% | |
Past due period | 30 days | |
Performance obligations expected to be satisfied | $ 100,800,000 | |
Impairment loss recognized | $ 0 | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of remaining performance obligation | 99.00% | |
Percentage of remaining performance obligation, expected timing | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of remaining performance obligation | 1.00% | |
Percentage of remaining performance obligation, expected timing |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision | $ 10 | $ 4.7 | ||
Effective income tax rate | 25.40% | 32.00% | ||
Unrecognized tax benefits | $ 4.9 | $ 5.9 | ||
Accrued interest and penalties | 0.3 | $ 0.5 | ||
Net interest and penalties recognized as income tax expense | $ (0.1) | $ 0 | ||
Additional tax liabilities at conclusion of tax examination | $ 1.5 |
Earnings per Share (Details)
Earnings per Share (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.2 | 0.2 |
Stockholders' Equity - Roll For
Stockholders' Equity - Roll Forward (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Nov. 24, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 126.4 | $ 1,439.3 | |
Total comprehensive income (loss) | 32.2 | 48.3 | |
Stock-based compensation expense | 3.9 | 14.2 | |
Proceeds from exercise of stock options | 0.5 | 2.8 | |
Repurchase of common stock | (0.9) | ||
Taxes withheld and paid on employees' share-based payment awards | (0.5) | ||
Proceeds associated with divestiture of discontinued operations | 35 | ||
Common stock dividends | (3.8) | (10.8) | |
Ending balance | $ 193.7 | $ 1,492.9 | |
Common stock dividends (in dollars per share) | $ 0.03 | $ 0.09 | |
Common stock issued (in shares) | 127,001 | 189,629 | |
Centa China | Centa China | Process & Motion Control | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Non-controlling interest | 5.00% | ||
Common stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 1.3 | $ 1.2 | |
Ending balance | 1.3 | 1.2 | |
Additional paid-in capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 1,436.9 | 1,392.9 | |
Stock-based compensation expense | 3.9 | 14.2 | |
Proceeds from exercise of stock options | 0.5 | 2.8 | |
Taxes withheld and paid on employees' share-based payment awards | (0.5) | ||
Ending balance | 1,440.8 | 1,409.9 | |
Retained earnings/deficit | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (1,236.9) | 116 | |
Total comprehensive income (loss) | 30.2 | 50 | |
Repurchase of common stock | (0.9) | ||
Proceeds associated with divestiture of discontinued operations | 35 | ||
Common stock dividends | (3.8) | (10.8) | |
Ending balance | (1,175.5) | 154.3 | |
Accumulated other comprehensive loss | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (74.9) | (73.8) | |
Total comprehensive income (loss) | 2 | (1.8) | |
Ending balance | (72.9) | (75.6) | |
Non-controlling interest | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 0 | 3 | |
Total comprehensive income (loss) | 0.1 | ||
Ending balance | $ 0 | $ 3.1 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Jan. 27, 2020 | Mar. 31, 2015 | |
Class of Stock [Line Items] | ||||
Repurchased and canceled shares (in shares) | 0 | 22,300 | ||
Cost of repurchased and canceled shares of common stock | $ 900,000 | |||
Average price of repurchased and canceled shares of common stock (in dollars per share) | $ 39.27 | |||
Common stock | ||||
Class of Stock [Line Items] | ||||
Common stock repurchase program amount | $ 300,000,000 | $ 200,000,000 | ||
Remaining amount of repurchase authority | $ 162,800,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | $ 126.4 |
Other comprehensive loss before reclassifications | 2 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current period other comprehensive income | 2 |
Ending balance | 193.7 |
Total | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (74.9) |
Ending balance | (72.9) |
Foreign Currency Translation and Other | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (70.9) |
Other comprehensive loss before reclassifications | 2 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current period other comprehensive income | 2 |
Ending balance | (68.9) |
Pension and Postretirement Plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Beginning balance | (4) |
Other comprehensive loss before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Net current period other comprehensive income | 0 |
Ending balance | $ (4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension and other postretirement plans | ||
Other income, net | $ 0.3 | $ 0.3 |
Provision for income taxes | 10 | 4.7 |
Net income | 30.2 | 50 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and other postretirement plans | ||
Pension and other postretirement plans | ||
Provision for income taxes | 0 | 0 |
Net income | 0 | (0.1) |
Reclassification out of Accumulated Other Comprehensive Income | Amortization of prior service credit | ||
Pension and other postretirement plans | ||
Other income, net | $ 0 | $ (0.1) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory, Net [Abstract] | ||
Finished goods | $ 200.8 | $ 169.1 |
Work in progress | 4.4 | 5.1 |
Raw materials | 20.6 | 14.6 |
Inventories at First-in, First-Out ("FIFO") cost | 225.8 | 188.8 |
Adjustment to state inventories at Last-in, First-Out ("LIFO") cost | (1.5) | (4.3) |
Inventories | $ 224.3 | $ 184.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Net Carrying Value (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Net carrying amount, beginning of period | $ 254.1 |
Currency translation adjustments | 0.9 |
Net carrying amount, end of period | $ 255 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Gross Carrying Amount and Accumulated Amortization (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Intangible assets subject to amortization: | |||
Weighted Average Useful Life | 15 years | 15 years | |
Accumulated Amortization | $ (298.5) | $ (295.5) | |
Intangible assets not subject to amortization - trademarks and tradenames | |||
Gross Carrying Amount | 475.4 | 474.6 | |
Net Carrying Amount | 176.9 | 179.1 | $ 179.1 |
Trademarks and tradenames | |||
Intangible assets not subject to amortization - trademarks and tradenames | |||
Carrying Amount | $ 87.1 | $ 87.1 | |
Patents | |||
Intangible assets subject to amortization: | |||
Weighted Average Useful Life | 9 years | 9 years | |
Gross Carrying Amount | $ 25.1 | $ 24.9 | |
Accumulated Amortization | (22.4) | (22.4) | |
Net Carrying Amount | $ 2.7 | $ 2.5 | |
Customer relationships (including distribution network) | |||
Intangible assets subject to amortization: | |||
Weighted Average Useful Life | 15 years | 15 years | |
Gross Carrying Amount | $ 351.7 | $ 351.1 | |
Accumulated Amortization | (271.8) | (269.1) | |
Net Carrying Amount | $ 79.9 | $ 82 | |
Tradenames | |||
Intangible assets subject to amortization: | |||
Weighted Average Useful Life | 12 years | 13 years | |
Gross Carrying Amount | $ 11.5 | $ 11.5 | |
Accumulated Amortization | (4.3) | (4) | |
Net Carrying Amount | $ 7.2 | $ 7.5 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Intangible asset amortization expense | $ 3 | $ 6.1 | |
Amortization expense in year ending 2022 | 7.9 | ||
Amortization expense in fiscal year 2023 | 6.5 | ||
Amortization expense in fiscal year 2024 | 6.5 | ||
Amortization expense in fiscal year 2025 | 6.5 | ||
Amortization expense in fiscal year 2026 | 6.3 | ||
Amortization expense in fiscal year 2027 | $ 6.3 | ||
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life of intangible assets acquired | 10 years |
Other Current Liabilities (Deta
Other Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Commissions | $ 8.5 | $ 8.1 |
Current portion of operating lease liability | 6.2 | 6.1 |
Income taxes payable | 1.9 | 2.1 |
Legal and environmental | 3 | 3 |
Product warranty | 1.3 | 1.3 |
Restructuring and other similar charges | 1.3 | 2.4 |
Risk management | 11 | 11.3 |
Sales rebates | 23.5 | 38.6 |
Taxes payable on behalf of PMC | 21.9 | 21.9 |
Taxes, other than income taxes | 1.6 | 1.8 |
Other | 7.1 | 9.8 |
Total | $ 87.3 | $ 106.4 |
Operating lease, liability, current, statement of financial position | Total | Total |
Long-Term Debt - Summary of Deb
Long-Term Debt - Summary of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total | $ 538.5 | $ 539.5 |
Less current maturities | 5.6 | 5.6 |
Long-term debt | 532.9 | 533.9 |
Term loan | Credit Facility | ||
Debt Instrument [Line Items] | ||
Total | 538.2 | 539.2 |
Unamortized debt issuance costs | 10.4 | 10.8 |
Finance leases and other subsidiary debt | ||
Debt Instrument [Line Items] | ||
Total | $ 0.3 | $ 0.3 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Oct. 04, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Other Subsidiary Debt | |||
Debt Instrument [Line Items] | |||
Amounts borrowed | $ 300,000 | $ 300,000 | |
Medium-term Notes | Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 550,000,000 | ||
Period payment | $ 1,400,000 | ||
Lien leverage ratio | 236.00% | ||
Prepayment penalty percentage | 1.00% | ||
Weighted-average effective interest rate | 2.75% | ||
Medium-term Notes | Senior Secured Credit Facility | Leverage Ratio Scenario One | |||
Debt Instrument [Line Items] | |||
Lien leverage ratio | 180.00% | ||
Medium-term Notes | Senior Secured Credit Facility | Leverage Ratio Scenario One | Base Rate | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.25% | ||
Medium-term Notes | Senior Secured Credit Facility | Leverage Ratio Scenario One | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Applicable margin | 2.25% | ||
Medium-term Notes | Senior Secured Credit Facility | Leverage Ratio Scenario Two | |||
Debt Instrument [Line Items] | |||
Interest rate decrease | 0.25% | ||
Medium-term Notes | Senior Secured Credit Facility | Leverage Ratio Scenario Two | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Applicable margin | 180.00% | ||
Revolving Credit Facility | Senior Secured Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 200,000,000 | ||
Lien leverage ratio | 236.00% | ||
Amounts borrowed | $ 0 | 0 | |
Letters of credit outstanding, amount | $ 6,100,000 | $ 6,100,000 | |
Revolving Credit Facility | Senior Secured Credit Facility | Leverage Ratio Scenario One | |||
Debt Instrument [Line Items] | |||
Lien leverage ratio | 200.00% | ||
Commitment fee | 0.50% | ||
Revolving Credit Facility | Senior Secured Credit Facility | Leverage Ratio Scenario One | Base Rate | |||
Debt Instrument [Line Items] | |||
Applicable margin | 1.00% | ||
Revolving Credit Facility | Senior Secured Credit Facility | Leverage Ratio Scenario One | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Applicable margin | 2.00% | ||
Revolving Credit Facility | Senior Secured Credit Facility | Leverage Ratio Scenario Two | |||
Debt Instrument [Line Items] | |||
Lien leverage ratio | 200.00% | ||
Interest rate decrease | 0.25% | ||
Commitment fee | 0.375% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured on Recurring and Nonrecurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 15 | $ 15.3 |
Deferred compensation plan liabilities | 15.9 | 16.3 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 1.8 | 0.9 |
Deferred compensation plan liabilities | 15.9 | 16.3 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 13.2 | 14.4 |
Deferred compensation plan liabilities | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Deferred compensation plan liabilities | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Fair value of long-term debt | $ 545.5 | $ 552.4 |
Commitments and Contingencies -
Commitments and Contingencies - Warranty Roll Forward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Movement in Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 1.3 | $ 1.2 |
Charged to operations | 0.2 | 0.6 |
Claims settled | (0.2) | (0.3) |
Balance at end of period | $ 1.3 | $ 1.5 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) lawsuit in Thousands, claimant in Thousands, $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)lawsuitcarrierclaimant | |
Loss Contingencies [Line Items] | |
Number of carriers, if insolvent, could impact coverage | carrier | 1 |
Asbestos Issue | Zurn | |
Loss Contingencies [Line Items] | |
Number of lawsuits | lawsuit | 6 |
Number of claimants | claimant | 7 |
Time frame of claims expected to be filed | 10 years |
Insurance for asbestos claims | $ 66 |
Estimated claim payments made over specified period | $ 49 |
Time frame of estimated claims disbursements | 10 years |
Retirement Benefits - Schedule
Retirement Benefits - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Benefits: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0.1 |
Interest cost | 2.1 | 3.7 |
Expected return on plan assets | (2.4) | (4.9) |
Amortization: | ||
Net periodic benefit cost | (0.3) | (1.1) |
Other Postretirement Benefits: | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 0.1 | 0.1 |
Amortization: | ||
Prior service credit | 0 | (0.1) |
Net periodic benefit cost | $ 0.1 | $ 0 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Contributions by employer | $ 0.2 | $ 0.1 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||
Stock-based compensation expense | $ 3.9 | $ 9.1 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options, Restricted Stock Units, and Performance Stock Units (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards (in shares) | shares | 7,406 |
Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 33.17 |
Performance stock units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards (in shares) | shares | 5,244 |
Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 33.37 |
Common stock | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards (in shares) | shares | 13,796 |
Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 35.50 |