Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 23, 2021 | |
Cover [Abstract] | ||
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 001-36102 | |
Entity Registrant Name | Knowles Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-1002689 | |
Entity Address, Address Line One | 1151 Maplewood Drive, | |
Entity Address, City or Town | Itasca, | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60143 | |
City Area Code | (630) | |
Local Phone Number | 250-5100 | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | KN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 92,793,450 | |
Document Type | 10-Q | |
Entity Central Index Key | 0001587523 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenues | $ 201 | $ 163.1 |
Cost of goods sold | 123 | 105.5 |
Restructuring charges - cost of goods sold | 0 | 1.4 |
Gross profit | 78 | 56.2 |
Research and development expenses | 23.3 | 25.7 |
Selling and administrative expenses | 36.2 | 36.2 |
Restructuring charges | 0.2 | 3.9 |
Operating expenses | 59.7 | 65.8 |
Operating earnings (loss) | 18.3 | (9.6) |
Interest expense, net | 4 | 3.7 |
Other income, net | (0.9) | (2.7) |
Earnings (loss) before income taxes and discontinued operations | 15.2 | (10.6) |
Provision for income taxes | 2.7 | 2.2 |
Earnings (loss) from continuing operations | 12.5 | (12.8) |
Earnings from discontinued operations, net | 0 | 3.7 |
Net earnings (loss) | $ 12.5 | $ (9.1) |
Earnings per share: | ||
Earnings (loss) from continuing operations, per basic share | $ 0.14 | $ (0.14) |
Earnings (loss) from continuing operations, per diluted share | 0.13 | (0.14) |
Earnings from discontinued operations, per basic share | 0 | 0.04 |
Earnings from discontinued operations, per diluted share | 0 | 0.04 |
Net earnings (loss) per share, basic | 0.14 | (0.10) |
Net earnings (loss) per share, diluted | $ 0.13 | $ (0.10) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 92,263,705 | 91,795,980 |
Diluted (in shares) | 94,983,586 | 91,795,980 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ 12.5 | $ (9.1) |
Foreign currency translation | (3.6) | (7.5) |
Employee benefit plans: | ||
Amortization or settlement of actuarial losses and prior service costs | 0.2 | (0.1) |
Net change in employee benefit plans | 0.2 | (0.1) |
Changes in fair value of cash flow hedges: | ||
Unrealized net losses arising during period | (0.8) | (1.2) |
Net (gains) losses reclassified into earnings | (1) | 0.1 |
Total cash flow hedges | (1.8) | (1.1) |
Other comprehensive loss, net of tax | (5.2) | (8.7) |
Comprehensive earnings (loss) | $ 7.3 | $ (17.8) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets: | ||
Cash and cash equivalents | $ 181.6 | $ 147.8 |
Accounts Receivable, after Allowance for Credit Loss, Current | 114.7 | 131.4 |
Inventories, net | 142.3 | 130.1 |
Prepaid and other current assets | 12 | 10.3 |
Total current assets | 450.6 | 419.6 |
Property, plant, and equipment, net | 183.6 | 191.5 |
Goodwill | 910 | 910 |
Intangible assets, net | 75.4 | 78.7 |
Operating Lease, Right-of-Use Asset | 21.5 | 23.3 |
Other assets and deferred charges | (34.2) | (31.8) |
Total assets | 1,675.3 | 1,654.9 |
Current liabilities: | ||
Less: current maturities | 167.3 | 165.1 |
Accounts payable | 81 | 70.3 |
Accrued compensation and employee benefits | 22.5 | 30.4 |
Operating Lease, Liability, Current | 10 | 10.2 |
Other accrued expenses | 19.2 | 18.6 |
Federal and other taxes on income | 2.2 | 2.7 |
Total current liabilities | 302.2 | 297.3 |
Long-term debt | 0 | 0 |
Deferred Income Tax Liabilities, Net | 2 | 2 |
Operating Lease, Liability, Noncurrent | 16.6 | 18.7 |
Other liabilities | 30.5 | 32.8 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 0.9 | 0.9 |
Treasury Stock, Value | (16.2) | (16.2) |
Additional paid-in capital | 1,600.7 | 1,587.8 |
Accumulated deficit | (156) | (168.5) |
Accumulated other comprehensive loss | (105.7) | (100.5) |
Total stockholders' equity | 1,323.7 | 1,303.5 |
Total liabilities and stockholders' equity | 1,675.3 | 1,654.9 |
Disposal Group, Including Discontinued Operation, Liabilities | $ 0.3 | $ 0.6 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common Stock, Shares, Outstanding | 92,759,307 | 91,611,549 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 93,837,670 | 92,689,912 |
Treasury Stock, Shares | 1,078,363 | 1,078,363 |
Document Period End Date | Mar. 31, 2021 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) $ in Millions | Mar. 31, 2021USD ($)$ / sharesshares |
Current assets: | |
Allowance for doubtful accounts receivable | $ | $ 1.6 |
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 |
Common stock, par value (in dollars per share) | $ / shares | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 |
Common stock, shares issued (in shares) | 93,837,670 |
Treasury Stock, Shares | 1,078,363 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock |
Balance at Dec. 31, 2019 | $ 1,288.5 | $ 0.9 | $ 1,574.7 | $ (175.1) | $ (112) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (9.1) | (9.1) | ||||
Earnings (loss) from continuing operations | (12.8) | |||||
Other comprehensive (loss) earnings, net of tax | (8.7) | |||||
Other comprehensive loss, net of tax | (8.7) | |||||
Treasury Stock, Value, Acquired, Cost Method | (15) | (15) | ||||
Stock-based compensation expense | 3.5 | 3.5 | ||||
Common stock issued for exercise of stock options and other | 0.4 | 0.4 | ||||
Tax on restricted stock unit vesting | (5.8) | (5.8) | ||||
Balance at Mar. 31, 2020 | 1,253.8 | 0.9 | 1,572.8 | (184.2) | (120.7) | (15) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0.2 | |||||
Treasury Stock, Value | 16.2 | |||||
Balance at Dec. 31, 2020 | 1,303.5 | 0.9 | 1,587.8 | (168.5) | (100.5) | (16.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 12.5 | 12.5 | ||||
Earnings (loss) from continuing operations | 12.5 | 12.5 | ||||
Other comprehensive (loss) earnings, net of tax | (5.2) | |||||
Other comprehensive loss, net of tax | (5.2) | |||||
Stock-based compensation expense | 11.1 | 11.1 | ||||
Common stock issued for exercise of stock options and other | 8.4 | 8.4 | ||||
Tax on restricted stock unit vesting | (6.6) | (6.6) | ||||
Balance at Mar. 31, 2021 | 1,323.7 | $ 0.9 | $ 1,600.7 | $ (156) | $ (105.7) | $ (16.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.1) | |||||
Treasury Stock, Value | $ 16.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Adjustments to reconcile net earnings (loss) to cash from operating activities: | ||
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net | $ 2.2 | $ 1.7 |
Other accrued expenses | 0.1 | 0 |
Impaired Assets to be Disposed of by Method Other than Sale, Amount of Impairment Loss | 0 | 1.3 |
Gain (Loss) on Disposition of Property Plant Equipment | (0.3) | 0.1 |
Depreciation and amortization | 15.1 | 15.3 |
Stock-based compensation | 11.1 | 3.5 |
Non-cash interest expense and amortization of debt issuance costs | 2.3 | 2.1 |
Deferred income taxes | 0 | (0.5) |
Other, net | (1.5) | (4.1) |
Changes in assets and liabilities (excluding effects of foreign exchange): | ||
Increase (Decrease) in Other Noncurrent Assets and Liabilities, Net | 2.2 | 1.7 |
Increase (Decrease) in Prepaid Expense and Other Assets | 3.3 | 5.6 |
Other accrued expenses | 0.1 | 0 |
Receivables, net | 16.6 | 38.8 |
Inventories, net | (12.9) | (22.1) |
Prepaid and other current assets | (3.3) | (5.6) |
Accounts payable | 10.8 | (6.3) |
Accrued compensation and employee benefits | (7.7) | (10.3) |
Increase Decrease Accrued Taxes, Net | (0.9) | (2.9) |
Net Cash Provided by (Used in) Operating Activities | 39.7 | (1.5) |
Investing Activities | ||
Net Cash Provided by (Used in) Investing Activities, Total | (7) | (7.8) |
Additions to property, plant, and equipment | (5.2) | (7.8) |
Payments for (Proceeds from) Investments | (2.1) | 0 |
Proceeds from Sale of Property, Plant, and Equipment | 0.3 | 0 |
Financing Activities | ||
Net Cash Provided by (Used in) Financing Activities, Total | 1.2 | 78.9 |
Borrowings under revolving credit facility | 0 | 100 |
Payments for Repurchase of Common Stock | 0 | 15 |
Tax on restricted and performance stock unit vesting | (6.6) | (5.8) |
Payments of finance lease obligations | (0.6) | (0.5) |
Proceeds from exercise of stock-based awards | 8.4 | 0.2 |
Effect of Exchange Rate on Cash and Cash Equivalents [Abstract] | ||
Effect of exchange rate changes on cash and cash equivalents | (0.1) | (0.2) |
Net earnings (loss) | 12.5 | (9.1) |
Net increase in cash and cash equivalents | 33.8 | 69.4 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations, Beginning Balance | 147.8 | 78.4 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations | 181.6 | 147.8 |
Supplemental information - cash paid for: | ||
Income taxes | 4.5 | 5.4 |
Interest | $ 0.4 | $ 0.4 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Description of Business - Knowles Corporation (NYSE:KN) is a market leader and global provider of advanced micro-acoustic microphones and speakers, audio processing, and precision device solutions, serving the consumer electronics, communications, medtech, defense, electric vehicle, and industrial markets. The Company uses its leading position in SiSonic TM micro-electro-mechanical systems ("MEMS") microphones and strong capabilities in audio processing technologies to optimize audio systems and improve the user experience in mobile, ear, and Internet of Things ("IoT") applications. Knowles is also a leader in acoustic components, high-end capacitors, and mmWave radio frequency solutions for a diverse set of markets. The Company's focus on the customer, combined with its unique technology, proprietary manufacturing techniques, rigorous testing, and global scale, enable the Company to deliver innovative solutions that optimize the user experience. References to "Knowles," "the Company," "we," "our," and "us" refer to Knowles Corporation and its consolidated subsidiaries. Financial Statement Presentation - The accompanying unaudited interim Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”) for complete financial statements. These unaudited interim Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K. The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. Management uses historical experience and all available information to make these estimates, including considerations for the impact of the COVID-19 pandemic on the macroeconomic environment. The situation related to the COVID-19 pandemic continues to be complex and rapidly evolving. The Company cannot reasonably estimate the duration of the COVID-19 pandemic or fully ascertain its impact on the Company’s future results and market capitalization, which could adversely impact estimates such as the recoverability of goodwill and long-lived assets and the realizability of deferred tax assets. The unaudited interim Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of results for these interim periods. On February 24, 2020, the Company announced that its Board of Directors had authorized a share repurchase program of up to $100 million of the Company's common stock. The timing and amount of any shares repurchased will be determined by the Company based on its evaluation of market conditions and other factors, and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be suspended or discontinued at any time. The actual timing, number, and share price of shares repurchased will depend on a number of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal requirements. Any shares repurchased will be held as treasury stock. The Company did not repurchase any shares of its common stock during the three months ended March 31, 2021. Non-cash Investing Activities - Purchases of property, plant, and equipment included in accounts payable at March 31, 2021 and 2020 were $2.5 million and $3.9 million, respectively. These non-cash amounts are not reflected as outflows to "Additions to property, plant, and equipment" within "Investing Activities" of the Consolidated Statements of Cash Flows for the respective periods. |
Recent Accounting Standards (No
Recent Accounting Standards (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Standards | Recently Issued Accounting Standards In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06 to simplify the accounting for certain financial instruments with characteristics of liabilities and equity. The standard eliminates certain accounting models that separated embedded conversion features from host contracts for convertible instruments, requiring bifurcation only if the convertible feature qualifies as a derivative under ASC 815 or for convertible instruments issued at a substantial premium. In addition, the guidance requires the if-converted method of calculating diluted earnings per share for convertible instruments, which eliminates the use of the treasury stock method for instruments that may be settled in cash or shares. The standard is effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The standard can be adopted on a modified retrospective basis to transactions outstanding as of the adoption date or on a fully retrospective basis to all periods presented. The Company plans to adopt the standard using the modified retrospective method on January 1, 2022. The Company does not expect the standard to impact the Consolidated Financial Statements as all currently outstanding convertible instruments will mature prior to the adoption date. See Note 8. Borrowings for detail on the Company's outstanding convertible instruments. |
Disposed and Discontinued Opera
Disposed and Discontinued Operations (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations [Abstract] | |
Disposed and Discontinued Operations | Management and the Board of Directors periodically conduct strategic reviews of the Company's businesses. On November 28, 2017, the Company completed the sale of its high-end oscillators business (“Timing Device Business”), part of the Precision Devices (“PD”) segment, for $130.0 million, plus purchase price adjustments for a net amount of $135.1 million. On July 7, 2016, the Company completed the sale of its speaker and receiver product line (“Speaker and Receiver Product Line”) for $45.0 million in cash, less purchase price adjustments for a net amount received of $40.6 million. In accordance with ASC 205-20, Presentation of Financial Statements – Discontinued Operations, the results of operations and financial positions of the Timing Device Business and Speaker and Receiver Product Line have been reclassified to discontinued operations for all periods presented as these disposals represent strategic shifts that had a major effect on the Company's results of operations. Summarized results of the Company's discontinued operations are as follows: (in millions) Three Months Ended March 31, 2020 Revenues $ — Operating income — Earnings from discontinued operations before taxes — Benefit from income taxes (1) (3.7) Earnings from discontinued operations, net of tax $ 3.7 (1) The Company recorded a tax benefit for a refund received during the first quarter of 2020 related to the Timing Device Business. Discontinued operations had no impact on the Company's results of operations for the three months ended March 31, 2021. Assets and liabilities of discontinued operations are summarized below: (in millions) March 31, 2021 December 31, 2020 Liabilities of discontinued operations: Federal and other taxes on income (1) $ 0.3 $ — Total current liabilities 0.3 — Other liabilities (1) — 0.6 Total liabilities $ 0.3 $ 0.6 |
Inventories, net (Notes)
Inventories, net (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory, Net [Abstract] | |
Inventories, net | The following table details the major components of inventories, net: (in millions) March 31, 2021 December 31, 2020 Raw materials $ 93.2 $ 89.7 Work in progress 33.5 31.0 Finished goods 55.7 48.4 Subtotal 182.4 169.1 Less reserves (40.1) (39.0) Total $ 142.3 $ 130.1 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 5. Property, Plant, and Equipment, net The following table details the major components of property, plant, and equipment, net: (in millions) March 31, 2021 December 31, 2020 Land $ 7.9 $ 8.0 Buildings and improvements 116.4 111.9 Machinery, equipment, and other 550.6 562.8 Subtotal 674.9 682.7 Less accumulated depreciation (491.3) (491.2) Total $ 183.6 $ 191.5 Depreciation expense totaled $11.8 million and $12.0 million for the three months ended March 31, 2021 and 2020, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | There were no changes in the carrying value of goodwill by reportable segment for the three months ended March 31, 2021. The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: March 31, 2021 December 31, 2020 (in millions) Gross Carrying Accumulated Gross Carrying Accumulated Amortized intangible assets: Trademarks $ 1.0 $ 0.4 $ 1.0 $ 0.4 Patents 40.8 37.3 40.8 36.1 Customer relationships 12.0 5.7 12.0 5.2 Developed technology 36.5 8.2 36.5 6.7 Non-competition agreements 1.8 0.8 1.8 0.7 Total 92.1 52.4 92.1 49.1 Unamortized intangible assets: Trademarks 32.0 32.0 IPR&D (1) 3.7 3.7 Total 35.7 35.7 Total intangible assets, net $ 75.4 $ 78.7 (1) The in-process research and development ("IPR&D") project is expected to be complete in 2021. Upon completion of the underlying project, IPR&D will be reclassified as a definite-lived intangible asset and amortized over its estimated useful life. Amortization expense totaled $3.3 million for the three months ended March 31, 2021 and 2020. Amortization expense for the next five years, based on current definite-lived intangible balances, is estimated to be as follows: (in millions) Q2-Q4 2021 $ 9.7 2022 7.7 2023 7.1 2024 7.0 2025 6.6 |
Other Comprehensive Earnings
Other Comprehensive Earnings | 3 Months Ended |
Mar. 31, 2021 | |
Statement of Other Comprehensive Income [Abstract] | |
Other Comprehensive Earnings | The amounts recognized in other comprehensive loss were as follows: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 (in millions) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation $ (3.6) $ — $ (3.6) $ (7.5) $ — $ (7.5) Employee benefit plans 0.2 — 0.2 0.2 (0.3) (0.1) Changes in fair value of cash flow hedges (1.9) 0.1 (1.8) (1.2) 0.1 (1.1) Total other comprehensive loss $ (5.3) $ 0.1 $ (5.2) $ (8.5) $ (0.2) $ (8.7) The following tables summarize the changes in balances of each component of accumulated other comprehensive loss, net of tax during the three months ended March 31, 2021 and 2020: (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2020 $ 1.6 $ (22.1) $ (80.0) $ (100.5) Other comprehensive (loss) earnings, net of tax (1.8) 0.2 (3.6) (5.2) Balance at March 31, 2021 $ (0.2) $ (21.9) $ (83.6) $ (105.7) (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2019 $ 0.5 $ (18.7) $ (93.8) $ (112.0) Other comprehensive loss, net of tax (1.1) (0.1) (7.5) (8.7) Balance at March 31, 2020 $ (0.6) $ (18.8) $ (101.3) $ (120.7) The following tables summarize the amounts reclassified from accumulated other comprehensive loss to earnings: Three Months Ended March 31, (in millions) Statement of Earnings Line 2021 2020 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs $ 0.2 $ 0.2 Tax Provision for income taxes — (0.3) Net of tax $ 0.2 $ (0.1) Cash flow hedges: Net (gains) losses reclassified into earnings Cost of goods sold $ (1.3) $ 0.1 Tax Provision for income taxes 0.3 — Net of tax $ (1.0) $ 0.1 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The Company's ETR from continuing operations for the three months ended March 31, 2021 and 2020 was a 17.8% provision and a 20.8% provision, respectively. The Company accrues taxes in various countries where it generates income and applies a valuation allowance in other jurisdictions (primarily the U.S.), which resulted in the provision for the three months ended March 31, 2021 and 2020. The Company's ETR is favorably impacted by tax holidays granted to the Company in Malaysia effective through December 31, 2021. These tax holidays are subject to the Company's annual satisfaction of certain conditions, including investment and sales thresholds. If the Company fails to satisfy such conditions, the Company's ETR may be significantly adversely impacted. The continuing operations benefit of our tax holidays in Malaysia for the three months ended March 31, 2021 was approximately $2.4 million, or $0.03 on a per share basis. The continuing operations benefit of these incentives for the three months ended March 31, 2020 was approximately $1.3 million, or $0.01 on a per share basis. |
Equity Incentive Program (Notes
Equity Incentive Program (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Equity Incentive Program | Stock-based compensation expense recognized in the Consolidated Statements of Earnings totaled $11.1 million and $3.5 million for the three months ended March 31, 2021 and 2020, respectively. Stock Options and SSARs The expense related to stock options granted in the three months ended March 31, 2021 and 2020 was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below: Three Months Ended March 31, 2021 2020 Risk-free interest rate 0.06% 1.42% Dividend yield —% —% Expected life (years) 4.5 4.3 to 4.5 Volatility 36.0% 38.8% to 40.6% Fair value at date of grant $6.14 $5.56 to $5.95 The following table summarizes the Company's stock-settled stock appreciation right ("SSAR") and stock option activity for the three months ended March 31, 2021 (in millions, except share and per share amounts): SSARs Stock Options Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) Outstanding at December 31, 2020 596,537 $ 22.72 5,765,903 $ 17.44 Granted — — 214,982 20.60 Exercised — — (524,864) 15.92 Forfeited — — (60,045) 16.54 Expired (106,477) 22.17 (838,666) 29.53 Outstanding at March 31, 2021 490,060 $ 22.84 $ — 1.4 4,557,310 $ 15.54 $ 24.6 3.3 Exercisable at March 31, 2021 490,060 $ 22.84 $ — 1.4 3,566,031 $ 14.99 $ 21.2 2.6 There was no unrecognized compensation expense related to SSARs at March 31, 2021. At March 31, 2021, unrecognized compensation expense related to stock options not yet exercisable of $5.0 million is expected to be recognized over a weighted-average period of 1.8 years. RSUs The following table summarizes the Company's restricted stock unit ("RSU") activity for the three months ended March 31, 2021: Share units Weighted-average grant date fair value Unvested at December 31, 2020 1,909,786 $ 16.14 Granted 914,083 20.60 Vested (1) (757,961) 15.79 Forfeited (54,828) 17.22 Unvested at March 31, 2021 2,011,080 $ 18.23 (1) The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements. At March 31, 2021, $28.9 million of unrecognized compensation expense related to RSUs is expected to be recognized over a weighted-average period of 2.0 years. PSUs The Company grants performance share units (“PSUs”) to senior management. In each case, the awards will cliff vest three years following the grant date. PSUs will be settled in shares of the Company's common stock. Depending on the Company's overall performance relative to the applicable measures, the size of the PSU awards are subject to adjustment, up or down, resulting in awards at the end of the performance period that can range from 0% to 225% of target. The Company will ratably recognize the expense over the applicable service period for each grant of PSUs and adjust the expense for the expected achievement of performance conditions as appropriate. The fair value of PSUs is determined by using a Monte Carlo simulation. For the awards granted in February 2021, the number of PSUs that may be earned and vest is based on total shareholder return (“TSR”) relative to the component companies of the Russell 2000 Index over a three-year performance period. The COVID-19 pandemic brought on unique and unprecedented challenges to the Company, particularly in the hearing health and medtech markets. Many of the Company's executive compensation programs were affected, including outstanding PSU awards. Due to the impact of the COVID-19 pandemic on the Company’s overall business performance, effective February 8, 2021, the Company’s Compensation Committee approved certain modifications to PSUs granted in February 2018, 2019, and 2020. For the awards granted in February 2018 (the “2018 PSUs”), the number of PSUs that may be earned and vest was originally based on the Company’s revenues and stock price performance over a three-year performance period. The modified award is based on the Company’s revenues and stock price performance over three separate one-year performance periods to isolate the impact of the COVID-19 pandemic on the Company's fiscal 2020 performance. In addition, the performance periods corresponding to fiscal 2018 and 2019 were weighted at 25% each while the performance period corresponding to fiscal 2020 was weighted at 50%, given the impact of fiscal 2020 performance on shareholders. Service conditions were not modified. The modification of the 2018 PSUs affected nine employees and resulted in total incremental compensation expense of $3.9 million, which was recognized in the first quarter of 2021 as there was no remaining service period. In February 2021, the 2018 PSUs were converted from 329,092 PSUs to 190,544 shares of common stock based on achievement of the modified conditions. For the awards granted in February 2019 (the “2019 PSUs”), the number of PSUs that may be earned and vest was originally based on the Company's revenues and TSR relative to the component companies of the S&P Semiconductor Select Industry Index over a three-year performance period. The modified award is based on the Company’s revenues and TSR relative to the component companies of the S&P Semiconductor Select Industry Index over three separate one-year performance periods to isolate the impact of the COVID-19 pandemic on the Company's fiscal 2020 performance. Each period is weighted equally, as the Company expects to face challenges related to the COVID-19 pandemic in fiscal 2021. Service conditions were not modified. The modification of the 2019 PSUs affected eight employees and resulted in total incremental compensation expense of $2.4 million, which will be recognized over the remaining service period. Incremental compensation expense is subject to adjustment for the expected achievement of the performance condition based on fiscal 2021 revenues. For the awards granted in February 2020 (the “2020 PSUs”), the number of PSUs that may be earned and vest was originally based on TSR relative to the component companies of the S&P Semiconductor Select Industry Index over a three-year performance period. The modified award replaces the S&P Semiconductor Select Industry Index with the Russell 2000 Index. The Company is a member of the Russell 2000 Index, which represents a broader, more diversified index that better aligns with the Company's strategy. Service conditions were not modified. The modification of the 2020 PSUs affected eight employees and resulted in total incremental compensation expense of $4.7 million, which will be recognized over the remaining service period. The following table summarizes the Company's PSU activity for the three months ended March 31, 2021: Share units Weighted-average grant date fair value Unvested at December 31, 2020 920,973 $ 16.04 Granted 277,183 28.46 Vested (1) (329,092) 13.75 Forfeited (84,493) 17.16 Unvested at March 31, 2021 784,571 $ 21.27 (1) The number of PSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements. At March 31, 2021, $16.9 million of unrecognized compensation expense related to PSUs is expected to be recognized over a weighted-average period of 1.9 years. |
Earnings per Share (Notes)
Earnings per Share (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Basic and diluted earnings per share were computed as follows: Three Months Ended March 31, (in millions, except share and per share amounts) 2021 2020 Earnings (loss) from continuing operations $ 12.5 $ (12.8) Earnings from discontinued operations, net — 3.7 Net earnings (loss) $ 12.5 $ (9.1) Basic earnings (loss) per common share: Earnings (loss) from continuing operations $ 0.14 $ (0.14) Earnings from discontinued operations, net — 0.04 Net earnings (loss) $ 0.14 $ (0.10) Weighted-average shares outstanding 92,263,705 91,795,980 Diluted earnings (loss) per common share: Earnings (loss) from continuing operations $ 0.13 $ (0.14) Earnings from discontinued operations, net — 0.04 Net earnings (loss) $ 0.13 $ (0.10) Diluted weighted-average shares outstanding 94,983,586 91,795,980 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | March 31, 2021 and December 31, 2020. |
Segment Information (Notes)
Segment Information (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | The Company's two reportable segments are Audio and Precision Devices. Information regarding the Company's reportable segments is as follows: Three Months Ended March 31, (in millions) 2021 2020 Revenues: Audio $ 163.1 $ 120.1 Precision Devices 37.9 43.0 Total revenues $ 201.0 $ 163.1 Earnings (loss) from continuing operations before interest and income taxes: Audio $ 30.4 $ (6.1) Precision Devices 4.5 7.1 Total segments 34.9 1.0 Corporate expense / other 15.7 7.9 Interest expense, net 4.0 3.7 Earnings (loss) before income taxes and discontinued operations 15.2 (10.6) Provision for income taxes 2.7 2.2 Earnings (loss) from continuing operations $ 12.5 $ (12.8) Information regarding assets of the Company's reportable segments: Total Assets (in millions) March 31, 2021 December 31, 2020 Audio $ 1,497.3 $ 1,470.4 Precision Devices 173.6 179.2 Corporate / eliminations 4.4 5.3 Total $ 1,675.3 $ 1,654.9 The following table details revenues by geographic location. Revenues are attributed to regions based on the location of the Company's direct customer, which in some instances is an intermediary and not necessarily the end user. The Company's businesses are based primarily in Asia, North America, and Europe. Three Months Ended March 31, (in millions) 2021 2020 Asia $ 148.1 $ 109.7 United States 31.5 29.3 Europe 19.2 22.4 Other Americas 1.2 0.6 Other 1.0 1.1 Total $ 201.0 $ 163.1 Receivables, net from contracts with customers were $105.0 million and $123.8 million as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, our total remaining performance obligations are immaterial. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting Policy | The accompanying unaudited interim Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by U.S. generally accepted accounting principles (“GAAP” or “U.S. GAAP”) for complete financial statements. These unaudited interim Consolidated Financial Statements should therefore be read in conjunction with the Consolidated Financial Statements and Notes thereto for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K. The accompanying unaudited interim Consolidated Financial Statements have been prepared in accordance with U.S. GAAP, which requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. Management uses historical experience and all available information to make these estimates, including considerations for the impact of the COVID-19 pandemic on the macroeconomic environment. The situation related to the COVID-19 pandemic continues to be complex and rapidly evolving. The Company cannot reasonably estimate the duration of the COVID-19 pandemic or fully ascertain its impact on the Company’s future results and market capitalization, which could adversely impact estimates such as the recoverability of goodwill and long-lived assets and the realizability of deferred tax assets. The unaudited interim Consolidated Financial Statements reflect all adjustments of a normal, recurring nature that are, in the opinion of management, necessary for a fair statement of results for these interim periods. On February 24, 2020, the Company announced that its Board of Directors had authorized a share repurchase program of up to $100 million of the Company's common stock. The timing and amount of any shares repurchased will be determined by the Company based on its evaluation of market conditions and other factors, and will be made in accordance with applicable securities laws in either the open market or in privately negotiated transactions. The Company is not obligated to purchase any shares under the program, and the program may be suspended or discontinued at any time. The actual timing, number, and share price of shares repurchased will depend on a number of factors, including the market price of the Company’s common stock, general market and economic conditions, and applicable legal requirements. Any shares repurchased will be held as treasury stock. The Company did not repurchase any shares of its common stock during the three months ended March 31, 2021. |
Recent Accounting Standards New
Recent Accounting Standards New Accounting Pronouncements, Policy (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2020-06 to simplify the accounting for certain financial instruments with characteristics of liabilities and equity. The standard eliminates certain accounting models that separated embedded conversion features from host contracts for convertible instruments, requiring bifurcation only if the convertible feature qualifies as a derivative under ASC 815 or for convertible instruments issued at a substantial premium. In addition, the guidance requires the if-converted method of calculating diluted earnings per share for convertible instruments, which eliminates the use of the treasury stock method for instruments that may be settled in cash or shares. The standard is effective for public business entities for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The standard can be adopted on a modified retrospective basis to transactions outstanding as of the adoption date or on a fully retrospective basis to all periods presented. The Company plans to adopt the standard using the modified retrospective method on January 1, 2022. The Company does not expect the standard to impact the Consolidated Financial Statements as all currently outstanding convertible instruments will mature prior to the adoption date. See Note 8. Borrowings for detail on the Company's outstanding convertible instruments. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations [Abstract] | |
Summarized Results and Assets and Liabilities of Discontinued Operations | Summarized results of the Company's discontinued operations are as follows: (in millions) Three Months Ended March 31, 2020 Revenues $ — Operating income — Earnings from discontinued operations before taxes — Benefit from income taxes (1) (3.7) Earnings from discontinued operations, net of tax $ 3.7 (1) The Company recorded a tax benefit for a refund received during the first quarter of 2020 related to the Timing Device Business. Discontinued operations had no impact on the Company's results of operations for the three months ended March 31, 2021. Assets and liabilities of discontinued operations are summarized below: (in millions) March 31, 2021 December 31, 2020 Liabilities of discontinued operations: Federal and other taxes on income (1) $ 0.3 $ — Total current liabilities 0.3 — Other liabilities (1) — 0.6 Total liabilities $ 0.3 $ 0.6 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory, Net [Abstract] | |
Components of Inventory | The following table details the major components of inventories, net: (in millions) March 31, 2021 December 31, 2020 Raw materials $ 93.2 $ 89.7 Work in progress 33.5 31.0 Finished goods 55.7 48.4 Subtotal 182.4 169.1 Less reserves (40.1) (39.0) Total $ 142.3 $ 130.1 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment, net | The following table details the major components of property, plant, and equipment, net: (in millions) March 31, 2021 December 31, 2020 Land $ 7.9 $ 8.0 Buildings and improvements 116.4 111.9 Machinery, equipment, and other 550.6 562.8 Subtotal 674.9 682.7 Less accumulated depreciation (491.3) (491.2) Total $ 183.6 $ 191.5 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: March 31, 2021 December 31, 2020 (in millions) Gross Carrying Accumulated Gross Carrying Accumulated Amortized intangible assets: Trademarks $ 1.0 $ 0.4 $ 1.0 $ 0.4 Patents 40.8 37.3 40.8 36.1 Customer relationships 12.0 5.7 12.0 5.2 Developed technology 36.5 8.2 36.5 6.7 Non-competition agreements 1.8 0.8 1.8 0.7 Total 92.1 52.4 92.1 49.1 Unamortized intangible assets: Trademarks 32.0 32.0 IPR&D (1) 3.7 3.7 Total 35.7 35.7 Total intangible assets, net $ 75.4 $ 78.7 |
Schedule of Future Amortization Expense | Amortization expense for the next five years, based on current definite-lived intangible balances, is estimated to be as follows: (in millions) Q2-Q4 2021 $ 9.7 2022 7.7 2023 7.1 2024 7.0 2025 6.6 |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | The following table details restructuring charges incurred by reportable segment for the periods presented: Three Months Ended March 31, (in millions) 2021 2020 Audio $ 0.2 $ 4.1 Precision Devices — — Corporate — 1.2 Total $ 0.2 $ 5.3 |
Schedule of Restructuring Reserve by Type of Cost | The following table details the Company’s severance and other restructuring accrual activity: (in millions) Severance Pay and Benefits Contract Termination and Other Costs Total Balance at December 31, 2020 $ 1.9 $ 0.7 $ 2.6 Restructuring charges 0.2 — 0.2 Payments (0.9) (0.2) (1.1) Balance at March 31, 2021 $ 1.2 $ 0.5 $ 1.7 |
Schedule of Restructuring Reserve by Balance Sheet Location | The severance and restructuring accruals are recorded in the following line items on the Consolidated Balance Sheets: (in millions) March 31, 2021 December 31, 2020 Other accrued expenses $ 1.7 $ 2.4 Other liabilities — 0.2 Total $ 1.7 $ 2.6 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Borrowings (net of debt issuance costs, debt discount, and amortization) consist of the following: (in millions) March 31, 2021 December 31, 2020 3.25% convertible senior notes $ 167.3 $ 165.1 Revolving credit facility — — Total 167.3 165.1 Less current maturities 167.3 165.1 Total long-term debt $ — $ — |
Contractual Obligation, Fiscal Year Maturity Schedule | Total debt principal payments over the next five years are as follows: (in millions) Q2-Q4 2021 2022 2023 2024 2025 Debt principal payments $ 172.5 $ — $ — $ — $ — |
Schedule of Convertible Debt | The Notes consist of the following: (in millions) March 31, 2021 December 31, 2020 Liability component: Principal $ 172.5 $ 172.5 Less debt issuance costs and debt discount, net of amortization (5.2) (7.4) Total 167.3 165.1 Less current maturities (1) 167.3 165.1 Long-term portion $ — $ — Equity component (2) $ 29.9 $ 29.9 (1) There are no required principal payments due until maturity in November 2021. (2) Recorded in the Consolidated Balance Sheets within additional paid-in capital, inclusive of the $1.3 million of issuance costs in equity. |
Schedule of Convertible Debt Interest Expense | The following table sets forth total interest expense recognized related to the Notes: Three Months Ended March 31, (in millions) 2021 2020 3.25% coupon $ 1.4 $ 1.4 Amortization of debt issuance costs 0.3 0.2 Amortization of debt discount 1.9 1.8 Total $ 3.6 $ 3.4 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of other comprehensive (loss) earnings | The amounts recognized in other comprehensive loss were as follows: Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 (in millions) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation $ (3.6) $ — $ (3.6) $ (7.5) $ — $ (7.5) Employee benefit plans 0.2 — 0.2 0.2 (0.3) (0.1) Changes in fair value of cash flow hedges (1.9) 0.1 (1.8) (1.2) 0.1 (1.1) Total other comprehensive loss $ (5.3) $ 0.1 $ (5.2) $ (8.5) $ (0.2) $ (8.7) |
Schedule of (Loss) Earnings | The following tables summarize the changes in balances of each component of accumulated other comprehensive loss, net of tax during the three months ended March 31, 2021 and 2020: (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2020 $ 1.6 $ (22.1) $ (80.0) $ (100.5) Other comprehensive (loss) earnings, net of tax (1.8) 0.2 (3.6) (5.2) Balance at March 31, 2021 $ (0.2) $ (21.9) $ (83.6) $ (105.7) (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2019 $ 0.5 $ (18.7) $ (93.8) $ (112.0) Other comprehensive loss, net of tax (1.1) (0.1) (7.5) (8.7) Balance at March 31, 2020 $ (0.6) $ (18.8) $ (101.3) $ (120.7) The following tables summarize the amounts reclassified from accumulated other comprehensive loss to earnings: Three Months Ended March 31, (in millions) Statement of Earnings Line 2021 2020 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs $ 0.2 $ 0.2 Tax Provision for income taxes — (0.3) Net of tax $ 0.2 $ (0.1) Cash flow hedges: Net (gains) losses reclassified into earnings Cost of goods sold $ (1.3) $ 0.1 Tax Provision for income taxes 0.3 — Net of tax $ (1.0) $ 0.1 |
Equity Incentive Program (Table
Equity Incentive Program (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Black-Scholes Option-Pricing Assumptions | The expense related to stock options granted in the three months ended March 31, 2021 and 2020 was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below: Three Months Ended March 31, 2021 2020 Risk-free interest rate 0.06% 1.42% Dividend yield —% —% Expected life (years) 4.5 4.3 to 4.5 Volatility 36.0% 38.8% to 40.6% Fair value at date of grant $6.14 $5.56 to $5.95 |
Schedule of SSAR and Stock Options Activity | The following table summarizes the Company's stock-settled stock appreciation right ("SSAR") and stock option activity for the three months ended March 31, 2021 (in millions, except share and per share amounts): SSARs Stock Options Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) Number of Shares Weighted-Average Exercise Price Aggregate Intrinsic Value Weighted-Average Remaining Contractual Term (Years) Outstanding at December 31, 2020 596,537 $ 22.72 5,765,903 $ 17.44 Granted — — 214,982 20.60 Exercised — — (524,864) 15.92 Forfeited — — (60,045) 16.54 Expired (106,477) 22.17 (838,666) 29.53 Outstanding at March 31, 2021 490,060 $ 22.84 $ — 1.4 4,557,310 $ 15.54 $ 24.6 3.3 Exercisable at March 31, 2021 490,060 $ 22.84 $ — 1.4 3,566,031 $ 14.99 $ 21.2 2.6 |
Schedule of Restricted Stock Units Award Activity | The following table summarizes the Company's restricted stock unit ("RSU") activity for the three months ended March 31, 2021: Share units Weighted-average grant date fair value Unvested at December 31, 2020 1,909,786 $ 16.14 Granted 914,083 20.60 Vested (1) (757,961) 15.79 Forfeited (54,828) 17.22 Unvested at March 31, 2021 2,011,080 $ 18.23 (1) The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements. |
Share-based Payment Arrangement, Performance Shares, Outstanding Activity | The following table summarizes the Company's PSU activity for the three months ended March 31, 2021: Share units Weighted-average grant date fair value Unvested at December 31, 2020 920,973 $ 16.04 Granted 277,183 28.46 Vested (1) (329,092) 13.75 Forfeited (84,493) 17.16 Unvested at March 31, 2021 784,571 $ 21.27 (1) The number of PSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Reconciliation of information used in computing basic and diluted earnings per share | Basic and diluted earnings per share were computed as follows: Three Months Ended March 31, (in millions, except share and per share amounts) 2021 2020 Earnings (loss) from continuing operations $ 12.5 $ (12.8) Earnings from discontinued operations, net — 3.7 Net earnings (loss) $ 12.5 $ (9.1) Basic earnings (loss) per common share: Earnings (loss) from continuing operations $ 0.14 $ (0.14) Earnings from discontinued operations, net — 0.04 Net earnings (loss) $ 0.14 $ (0.10) Weighted-average shares outstanding 92,263,705 91,795,980 Diluted earnings (loss) per common share: Earnings (loss) from continuing operations $ 0.13 $ (0.14) Earnings from discontinued operations, net — 0.04 Net earnings (loss) $ 0.13 $ (0.10) Diluted weighted-average shares outstanding 94,983,586 91,795,980 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue and Earnings from continuing operations by market segment | Three Months Ended March 31, (in millions) 2021 2020 Revenues: Audio $ 163.1 $ 120.1 Precision Devices 37.9 43.0 Total revenues $ 201.0 $ 163.1 Earnings (loss) from continuing operations before interest and income taxes: Audio $ 30.4 $ (6.1) Precision Devices 4.5 7.1 Total segments 34.9 1.0 Corporate expense / other 15.7 7.9 Interest expense, net 4.0 3.7 Earnings (loss) before income taxes and discontinued operations 15.2 (10.6) Provision for income taxes 2.7 2.2 Earnings (loss) from continuing operations $ 12.5 $ (12.8) |
Reconciliation of Assets from Segment to Consolidated | Information regarding assets of the Company's reportable segments: Total Assets (in millions) March 31, 2021 December 31, 2020 Audio $ 1,497.3 $ 1,470.4 Precision Devices 173.6 179.2 Corporate / eliminations 4.4 5.3 Total $ 1,675.3 $ 1,654.9 |
Revenue from External Customers by Geographic Areas | The following table details revenues by geographic location. Revenues are attributed to regions based on the location of the Company's direct customer, which in some instances is an intermediary and not necessarily the end user. The Company's businesses are based primarily in Asia, North America, and Europe. Three Months Ended March 31, (in millions) 2021 2020 Asia $ 148.1 $ 109.7 United States 31.5 29.3 Europe 19.2 22.4 Other Americas 1.2 0.6 Other 1.0 1.1 Total $ 201.0 $ 163.1 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Earnings (loss) before income taxes and discontinued operations | $ 15.2 | $ (10.6) | |
Treasury Stock, Shares | 1,078,363 | 1,078,363 | |
Operating Lease, Liability, Noncurrent | $ 16.6 | $ 18.7 | |
Noncash Investing and Financing Items | |||
Purchases of property and equipment included in accounts payable | 2.5 | $ 3.9 | |
Property Subject to Operating Lease | |||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |||
Loss Contingency Accrual | 2.2 | ||
Lessee, Operating Lease, Liability, Payments, Due | $ 5 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | Jul. 07, 2016 | Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2021 | Dec. 31, 2020 | Nov. 28, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Consideration received for disposal group | $ 45 | $ 130 | ||||
Proceeds from the sale of business | $ 40.6 | $ 135.1 | ||||
Disposal Group, Including Discontinued Operation, Other Liabilities, Noncurrent | $ 0 | $ 0.6 | ||||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | $ 0 | |||||
Disposal Group, Including Discontinued Operation, Liabilities, Current | 0.3 | 0 | ||||
Disposal Group, Including Discontinued Operation, Accrued Income Tax Payable, Current | $ 0.3 | $ 0 | ||||
Discontinued Operations, Disposed of by Sale | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Operating Expense | 0 | |||||
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | 3.7 | |||||
Benefit from income taxes (1) | (3.7) | |||||
Disposal Group, Including Discontinued Operation, Revenue | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Raw materials | $ 93.2 | $ 89.7 |
Work in progress | 33.5 | 31 |
Finished goods | 55.7 | 48.4 |
Subtotal | 182.4 | 169.1 |
Less reserves | (40.1) | (39) |
Total | $ 142.3 | $ 130.1 |
Property, Plant and Equipment,
Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, Plant and Equipment | |||
Cost | $ 674.9 | $ 682.7 | |
Less accumulated depreciation | (491.3) | (491.2) | |
Total | 183.6 | 191.5 | |
Depreciation | 11.8 | $ 12 | |
Restructuring charges | 0.2 | 3.9 | |
Severance Pay and Contract Termination and Other Costs | |||
Property, Plant and Equipment | |||
Restructuring charges | 0.2 | 5.3 | |
Severance Pay and Contract Termination and Other Costs | Operating Segments | Corporate, Non-Segment [Member] | |||
Property, Plant and Equipment | |||
Restructuring charges | 0 | $ 1.2 | |
Land | |||
Property, Plant and Equipment | |||
Cost | 7.9 | 8 | |
Buildings and improvements | |||
Property, Plant and Equipment | |||
Cost | 116.4 | 111.9 | |
Machinery, equipment, and other | |||
Property, Plant and Equipment | |||
Cost | $ 550.6 | $ 562.8 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) $ in Millions | Mar. 31, 2021USD ($) |
Goodwill [Roll Forward] | |
Balance at December 31, 2020 | $ 910 |
44286 | $ 910 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets | ||
Gross carrying amount | $ 92.1 | $ 92.1 |
Accumulated amortization | 52.4 | 49.1 |
Unamortized intangible assets, gross carrying amount | 35.7 | 35.7 |
Intangible assets, net | 75.4 | 78.7 |
Amortization expense | 3.3 | |
Q4 2018 | 9.7 | |
2019 | 7.7 | |
2020 | 7.1 | |
2021 | 7 | |
2022 | 6.6 | |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Unamortized intangible assets, gross carrying amount | 32 | 32 |
In Process Research and Development [Member] | ||
Finite-Lived Intangible Assets | ||
Unamortized intangible assets, gross carrying amount | 3.7 | 3.7 |
Trademarks | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 1 | 1 |
Accumulated amortization | 0.4 | 0.4 |
Patents | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 40.8 | 40.8 |
Accumulated amortization | 37.3 | 36.1 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 12 | 12 |
Accumulated amortization | 5.7 | 5.2 |
0 | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 36.5 | 36.5 |
Accumulated amortization | 8.2 | 6.7 |
Non-competition agreements | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 1.8 | 1.8 |
Accumulated amortization | $ 0.8 | $ 0.7 |
Restructuring and Related Act_2
Restructuring and Related Activities - Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve | ||
Restructuring charges | $ 0.2 | $ 3.9 |
Restructuring and Related Cost, Incurred Cost | 0.2 | |
Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | 0.2 | 5.3 |
Severance Pay and Benefits | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Incurred Cost | 0.2 | |
Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Incurred Cost | 0 | |
Operating Segments | Audio | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | 0.2 | 4.1 |
Operating Segments | Precision Devices | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | 0 | 0 |
Operating Segments | Corporate, Non-Segment [Member] | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | 0 | 1.2 |
Cost of Goods Sold, Restructuring Charges | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | 0 | 1.4 |
Operating Expense | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | $ 0.2 | |
Restructuring Charges | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | $ 3.9 |
Restructuring and Related Act_3
Restructuring and Related Activities - Restructuring Accrual Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Cost and Reserve | ||
Restructuring charges | $ 0.2 | $ 3.9 |
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 2.6 | |
Restructuring charges | 0.2 | |
Payments | (1.1) | |
Severance and other restructuring reserve, ending balance | 1.7 | |
Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | 0.2 | 5.3 |
Severance Pay and Benefits | ||
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 1.9 | |
Restructuring charges | 0.2 | |
Payments | (0.9) | |
Severance and other restructuring reserve, ending balance | 1.2 | |
Contract Termination and Other Costs | ||
Restructuring Reserve [Roll Forward] | ||
Severance and other restructuring reserve, beginning balance | 0.7 | |
Restructuring charges | 0 | |
Payments | (0.2) | |
Severance and other restructuring reserve, ending balance | 0.5 | |
Cost of Goods Sold, Restructuring Charges | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | 0 | 1.4 |
Operating Expense | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | $ 0.2 | |
Restructuring Charges | Severance Pay and Contract Termination and Other Costs | ||
Restructuring Cost and Reserve | ||
Restructuring charges | $ 3.9 |
Restructuring and Related Act_4
Restructuring and Related Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Restructuring Cost and Reserve | ||
Severance and restructuring accrual | $ 1.7 | $ 2.6 |
Other accrued expenses | ||
Restructuring Cost and Reserve | ||
Severance and restructuring accrual | 1.7 | 2.4 |
Other liabilities | ||
Restructuring Cost and Reserve | ||
Severance and restructuring accrual | $ 0 | $ 0.2 |
Hedging Transaction and Derivat
Hedging Transaction and Derivative Instruments - Gain (Loss) of Derivative Instruments Recognized on Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative | ||
Cost of goods sold | $ 123 | $ 105.5 |
Interest expense, net | (4) | (3.7) |
Other expense (income), net | $ 0.9 | $ 2.7 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Long-term borrowings | ||
Long-term debt | $ 167.3 | $ 165.1 |
Less: current maturities | 167.3 | 165.1 |
Long-term portion | 0 | 0 |
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 172.5 | |
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |
Long-term Debt, Maturities, Repayments of Principal in Year Three | 0 | |
Convertible Debt | Convertible Notes Due Twenty Twenty One | ||
Long-term borrowings | ||
Convertible Notes Payable | 167.3 | 165.1 |
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |
Debt Instrument, Unamortized Discount | 5.2 | 7.4 |
Line of Credit | Credit Facility due October 11, 2022 | ||
Long-term borrowings | ||
Long-term Line of Credit | 0 | $ 0 |
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 0 |
Borrowings Convertible Debt (De
Borrowings Convertible Debt (Details) - Convertible Debt - Convertible Notes Due Twenty Twenty One $ / shares in Units, $ in Millions | 3 Months Ended | ||||
Mar. 31, 2021USD ($)$ / shares | Mar. 31, 2020USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2020USD ($) | May 04, 2016USD ($)$ / shares | |
Schedule of Convertible Debt | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||||
Debt Instrument, Convertible, Conversion Ratio | 54.2741 | ||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 18.4250 | ||||
Debt Issuance Costs, Net | $ 5 | ||||
Debt Issuance Costs Attributable to the Equity Component | 1.3 | ||||
Debt Instrument, Face Amount | 172.5 | $ 172.5 | $ 172.5 | ||
Debt Instrument, Unamortized Discount | (5.2) | (7.4) | |||
Convertible Notes Payable | 167.3 | 165.1 | |||
Convertible Notes Payable, Current | (167.3) | (165.1) | |||
Convertible Notes Payable, Noncurrent | 0 | 0 | |||
Debt Instrument, Convertible, Carrying Amount of Equity Component | 29.9 | $ 29.9 | |||
Debt Instrument, Fair Value Disclosure | 201.2 | ||||
Interest Expense, Debt, Excluding Amortization | 1.4 | $ 1.4 | |||
Amortization of Debt Issuance Costs | 0.3 | 0.2 | |||
Amortization of Debt Discount (Premium) | 1.9 | 1.8 | |||
Interest Expense, Debt | $ 3.6 | $ 3.4 | |||
Payments for Hedge, Financing Activities | $ 44.5 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 21.1050 | ||||
Proceeds from issuance of warrants | $ 39.1 |
Borrowings Schedule of Revolvin
Borrowings Schedule of Revolving Credit Facility (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020 | Dec. 31, 2020USD ($) | |
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Debt Instrument, Covenant, EBITDA to Interest Ratio, Minimum | 3.25 | ||
Debt Instrument, Covenant, Debt to EBITDA, Maximum | 3.75 | ||
Debt Instrument, Covenant, Senior Secured Leverage Ratio, Maximum | 3.25 | ||
Line of Credit | Weighted Average | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 0.27% | 0.23% | |
Line of Credit | Weighted Average | London Interbank Offered Rate (LIBOR) | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 3.09% | ||
Credit Facility due January 2, 2024 [Member] | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | ||
Credit Facility due January 2, 2024 [Member] | Minimum [Member] | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 0.225% | ||
Credit Facility due January 2, 2024 [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Credit Facility due January 2, 2024 [Member] | Minimum [Member] | Applicable margin alternate base rate [Member] | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
Credit Facility due January 2, 2024 [Member] | Maximum [Member] | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Line of Credit Facility, Commitment Fee Percentage | 0.375% | ||
Credit Facility due January 2, 2024 [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||
Credit Facility due January 2, 2024 [Member] | Maximum [Member] | Applicable margin alternate base rate [Member] | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||
Credit Facility due October 11, 2022 | Line of Credit | |||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | |||
Long-term Line of Credit | $ 0 | $ 0 |
Other Comprehensive Loss - OCI
Other Comprehensive Loss - OCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign currency translation adjustments [Abstract] | ||
Foreign currency translation | $ (3.6) | $ (7.5) |
Foreign currency translation, tax | 0 | 0 |
Foreign currency translation, net of tax | (3.6) | (7.5) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent [Abstract] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, before Tax, after Reclassification Adjustment, Attributable to Parent | 0.2 | 0.2 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 0 | (0.3) |
Net change in employee benefit plans | 0.2 | (0.1) |
Changes in fair value of cash flow hedges: | ||
Changes in fair value of cash flow hedges, before tax | (1.9) | (1.2) |
Changes in fair value of cash flow hedges, tax | 0.1 | 0.1 |
Changes in fair value of cash flow hedges, net of tax | (1.8) | (1.1) |
Total other comprehensive earnings [Abstract] | ||
Other comprehensive loss, before tax | (5.3) | (8.5) |
Other comprehensive loss, tax | 0.1 | (0.2) |
Other comprehensive loss, net of tax | $ (5.2) | $ (8.7) |
Other Comprehensive Loss - AOCI
Other Comprehensive Loss - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||
Amortization or settlement of actuarial losses and prior service costs | $ 0.2 | $ 0.2 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | 0 | 0.3 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | 0.2 | (0.1) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | 1.3 | (0.1) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | (0.3) | 0 |
Net (gains) losses reclassified into earnings | (1) | 0.1 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (100.5) | (112) |
Other comprehensive (loss) earnings, net of tax | (5.2) | (8.7) |
Ending balance | (105.7) | (120.7) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | 1.6 | 0.5 |
Other comprehensive (loss) earnings, net of tax | (1.8) | (1.1) |
Ending balance | (0.2) | (0.6) |
Employee benefit plans | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (22.1) | (18.7) |
Other comprehensive (loss) earnings, net of tax | 0.2 | (0.1) |
Ending balance | (21.9) | (18.8) |
Cumulative foreign currency translation adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Beginning balance | (80) | (93.8) |
Other comprehensive (loss) earnings, net of tax | (3.6) | (7.5) |
Ending balance | $ (83.6) | $ (101.3) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Holiday [Line Items] | ||
Share-based Payment Arrangement, Expense | $ 11.1 | $ 3.5 |
Effective tax rate (benefit) provision | 17.80% | 20.80% |
Income Tax Expense (Benefit) | $ 2.7 | $ 2.2 |
Earnings (loss) before income taxes and discontinued operations | 15.2 | (10.6) |
Other expense (income), net | 0.9 | 2.7 |
Foreign Tax Authority | ||
Income Tax Holiday [Line Items] | ||
Effective income tax rate reconciliation, tax holiday | $ 2.4 | $ 1.3 |
Holiday benefit (usd per share) | $ 0.03 | $ 0.01 |
Equity Incentive Program - Stoc
Equity Incentive Program - Stock Options and SSARs (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Expense | $ 11,100,000 | $ 3,500,000 |
SSARs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0 | |
Number of Shares [Roll Forward] | ||
Beginning balance | 596,537 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited | 0 | |
Expired | (106,477) | |
Ending balance | 490,060 | |
Exercised | 490,060 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other than Options, Expired in Period, Weighted Average Exercise Price | $ 22.17 | |
Weighted Average Grant Date Fair Value | ||
Beginning balance | 22.72 | |
Granted | 0 | |
Exercised | 0 | |
Forfeited | 0 | |
Ending balance | 22.84 | |
Exercisable | $ 22.84 | |
SARS and Options, Additional Disclosures | ||
SSARs, aggregate intrinsic value, outstanding | $ 0 | |
SSARs, aggregate intrinsic value, exercisable | $ 0 | |
SSARs, weighted average remaining contractual terms, outstanding | 1 year 4 months 24 days | |
SSARs, weighted average remaining contractual term, exercisable | 1 year 4 months 24 days | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 5,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Dividend yield | 0.00% | 0.00% |
Stock Options, Number of Shares | ||
Beginning balance | 5,765,903 | |
Granted | 214,982 | |
Exercised | (524,864) | |
Forfeited | (60,045) | |
Expired | (838,666) | |
Ending balance | 4,557,310 | |
Exercisable | 3,566,031 | |
Stock Options, Weighted Average Exercise Price | ||
Beginning balance | $ 17.44 | |
Granted | 20.60 | |
Exercised | 15.92 | |
Forfeited | 16.54 | |
Expired | 29.53 | |
Ending balance | 15.54 | |
Exercisable | $ 14.99 | |
SARS and Options, Additional Disclosures | ||
Options, aggregate intrinsic value, outstanding | $ 24,600,000 | |
Options, aggregate intrinsic value, exercisable | $ 21,200,000 | |
Options, weighted average remaining contractual term, outstanding | 3 years 3 months 18 days | |
Options, weighted average remaining contractual term, exercisable | 2 years 7 months 6 days | |
Minimum [Member] | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate | 0.06% | 1.42% |
Expected life (years) | 4 years 6 months | 4 years 3 months 18 days |
Volatility | 36.00% | 38.80% |
Fair value at date of grant | $ 6.14 | $ 5.56 |
Maximum [Member] | Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Expected life (years) | 4 years 6 months | |
Volatility | 40.60% | |
Fair value at date of grant | $ 5.95 |
Equity Incentive Program - RSUs
Equity Incentive Program - RSUs (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years |
Number of Shares [Roll Forward] | |
Beginning balance | shares | 1,909,786 |
Granted | shares | 914,083 |
Vested (1) | shares | (757,961) |
Forfeited | shares | (54,828) |
Ending balance | shares | 2,011,080 |
Weighted Average Grant Date Fair Value | |
Beginning balance | $ / shares | $ 16.14 |
Granted | $ / shares | 20.60 |
Vested (1) | $ / shares | 15.79 |
Forfeited | $ / shares | 17.22 |
Ending balance | $ / shares | $ 18.23 |
Equity Incentive Program Equity
Equity Incentive Program Equity Incentive Program - PSUs (Details) - Performance Shares $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020numberOfGrantees | Mar. 31, 2019numberOfGrantees | Mar. 31, 2018numberOfGrantees | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 16.9 | |||
Number of Shares [Roll Forward] | ||||
Beginning balance | shares | 920,973 | |||
Granted | shares | 277,183 | |||
Vested (1) | shares | (329,092) | |||
Forfeited | shares | (84,493) | |||
Ending balance | shares | 784,571 | |||
Weighted Average Grant Date Fair Value | ||||
Beginning balance | $ / shares | $ 16.04 | |||
Granted | $ / shares | 28.46 | |||
Vested (1) | $ / shares | 13.75 | |||
Forfeited | $ / shares | 17.16 | |||
Ending balance | $ / shares | $ 21.27 | |||
Share-based Payment Arrangement, Plan Modification, Number of Grantees Affected | numberOfGrantees | 8 | 8 | 9 | |
2019 | ||||
Weighted Average Grant Date Fair Value | ||||
Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ | $ 2.4 | |||
2018 | ||||
Weighted Average Grant Date Fair Value | ||||
Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ | 3.9 | |||
2020 | ||||
Weighted Average Grant Date Fair Value | ||||
Share-based Payment Arrangement, Plan Modification, Incremental Cost | $ | $ 4.7 |
Equity Incentive Program - Addi
Equity Incentive Program - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Expense | $ 11,100,000 | $ 3,500,000 |
SSARs | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 0 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 5,000,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 9 months 18 days | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 28,900,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 16,900,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | |
Minimum [Member] | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Percentage increase of initial grant value | 0.00% | |
Maximum [Member] | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Percentage increase of initial grant value | 225.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Reconciliation of information used in computing basic and diluted earnings per share [Abstract] | ||
Earnings (loss) from continuing operations | $ 12.5 | $ (12.8) |
Earnings from discontinued operations, net | 0 | 3.7 |
Net earnings (loss) | $ 12.5 | $ (9.1) |
Basic earnings (loss) per common share: | ||
Earnings (loss) from continuing operations, per basic share | $ 0.14 | $ (0.14) |
Earnings from discontinued operations, per basic share | 0 | 0.04 |
Net earnings (loss) per share, basic | $ 0.14 | $ (0.10) |
Weighted average shares outstanding | 92,263,705 | 91,795,980 |
Diluted earnings (loss) per common share: | ||
Earnings (loss) from continuing operations, per diluted share | $ 0.13 | $ (0.14) |
Loss from discontinued operations, net | 0 | 0.04 |
Net earnings (loss) per share, diluted | $ 0.13 | $ (0.10) |
Diluted (in shares) | 94,983,586 | 91,795,980 |
Weighted average number of anti-dilutive shares excluded from the calculation (in shares) | 1,768,440 | 5,381,017 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021USD ($)segments | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting Information | |||
Billed Contracts Receivable | $ 105 | $ 123.8 | |
Number of reportable segments | segments | 2 | ||
Assets | $ 1,675.3 | 1,654.9 | |
Revenues | 201 | $ 163.1 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||
Interest expense, net | 4 | 3.7 | |
Earnings (loss) before income taxes and discontinued operations | 15.2 | (10.6) | |
Provision for income taxes | 2.7 | 2.2 | |
Earnings (loss) from continuing operations | 12.5 | (12.8) | |
Asia | |||
Segment Reporting Information | |||
Revenues | 148.1 | 109.7 | |
United States | |||
Segment Reporting Information | |||
Revenues | 31.5 | 29.3 | |
Europe | |||
Segment Reporting Information | |||
Revenues | 19.2 | 22.4 | |
Other Americas | |||
Segment Reporting Information | |||
Revenues | 1.2 | 0.6 | |
Other Geographical Locations | |||
Segment Reporting Information | |||
Revenues | 1 | 1.1 | |
Operating Segments | |||
Reconciliation of Net Earnings from Segments [Abstract] | |||
Earnings (loss) before interest and income taxes | 34.9 | 1 | |
Operating Segments | Audio | |||
Segment Reporting Information | |||
Assets | 1,497.3 | 1,470.4 | |
Revenues | 163.1 | 120.1 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||
Earnings (loss) before interest and income taxes | 30.4 | (6.1) | |
Operating Segments | Precision Devices | |||
Segment Reporting Information | |||
Assets | 173.6 | 179.2 | |
Revenues | 37.9 | 43 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||
Earnings (loss) before interest and income taxes | 4.5 | 7.1 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Information | |||
Assets | 4.4 | $ 5.3 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||
Corporate expense / other | 15.7 | 7.9 | |
Interest expense, net | $ 4 | $ 3.7 |