Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
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, $0.01 par value per share | |
Trading Symbol | KN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 91,144,116 | |
Document Type | 10-Q | |
Entity Central Index Key | 0001587523 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Financial Position [Abstract] | ||||
Gain (Loss) on Disposition of Assets | $ 4.8 | $ 0 | $ 4.8 | $ 0 |
Revenues | 173 | 188 | 317.3 | 389.4 |
Cost of goods sold | 105.8 | 110.3 | 196.2 | 228.4 |
Gross profit | 73.7 | 77.7 | 127.5 | 161 |
Research and development expenses | 19.7 | 21.3 | 39.7 | 44.4 |
Selling and administrative expenses | 36.5 | 30.7 | 70.3 | 63 |
Restructuring charges | 0.6 | 0.5 | 1.6 | 7.1 |
Operating expenses | 56.8 | 292.3 | 111.6 | 354.3 |
Operating earnings (loss) | 16.9 | (214.6) | 15.9 | (193.3) |
Other (income) expense, net | (1.3) | 1.7 | 1 | 1.2 |
Earnings (loss) before income taxes | 17.4 | (217.1) | 13.3 | (196.1) |
Provision for income taxes | 3.8 | 25.8 | 4.9 | 28.7 |
Net earnings (loss) | $ 13.6 | $ (242.9) | $ 8.4 | $ (224.8) |
Earnings per share: | ||||
Net earnings (loss) per share, basic | $ 0.15 | $ (2.64) | $ 0.09 | $ (2.44) |
Net earnings (loss) per share, diluted | $ 0.15 | $ (2.64) | $ 0.09 | $ (2.44) |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 91,400,000 | 92,000,000 | 91,400,000 | 92,200,000 |
Diluted (in shares) | 91,800,000 | 92,000,000 | 92,100,000 | 92,200,000 |
Restructuring charges - cost of goods sold | $ (1.7) | $ 0 | $ (1.6) | $ 0 |
Asset Impairment Charges | 0 | 239.8 | 0 | 239.8 |
Interest Income (Expense), Net | $ 0.8 | $ 0.8 | $ 1.6 | $ 1.6 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ 13.6 | $ (242.9) | $ 8.4 | $ (224.8) |
Foreign currency translation | (13.3) | (15.6) | (9.7) | (17.8) |
Employee benefit plans: | ||||
Amortization or settlement of actuarial losses and prior service costs | 0.2 | (0.1) | 0.4 | 0 |
Net change in employee benefit plans | 0.2 | (0.1) | 0.4 | 0 |
Changes in fair value of cash flow hedges: | ||||
Unrealized net losses arising during period | (4) | (3.1) | (3.9) | (3.1) |
Net losses reclassified into earnings | 0.4 | 0.9 | 0.5 | 0.6 |
Total cash flow hedges | (3.6) | (2.2) | (3.4) | (2.5) |
Other comprehensive loss, net of tax | (16.7) | (17.9) | (12.7) | (20.3) |
Comprehensive loss | $ (3.1) | $ (260.8) | $ (4.3) | $ (245.1) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 54.4 | $ 48.2 |
Accounts Receivable, after Allowance for Credit Loss, Current | 118 | 134.7 |
Inventories, net | 191.9 | 169.5 |
Prepaid and other current assets | 11.6 | 10 |
Total current assets | 375.9 | 362.4 |
Property, plant, and equipment, net | 149.9 | 161.8 |
Goodwill | 471 | 471 |
Intangible assets, net | 79.3 | 85.1 |
Operating Lease, Right-of-Use Asset | 11.5 | 12.6 |
Other assets and deferred charges | (88.4) | (91) |
Total assets | 1,176 | 1,183.9 |
Current liabilities: | ||
Accounts payable | 48.5 | 41.4 |
Accrued compensation and employee benefits | 23.9 | 26.9 |
Operating Lease, Liability, Current | 6.1 | 8.4 |
Other accrued expenses | 29.9 | 19.9 |
Federal and other taxes on income | 0 | 2.5 |
Total current liabilities | 108.4 | 99.1 |
Long-term debt | 45 | 45 |
Deferred Income Tax Liabilities, Net | 0.9 | 0.9 |
Operating Lease, Liability, Noncurrent | 6.3 | 7.2 |
Other liabilities | 28.9 | 38.8 |
Commitments and contingencies (Note 14) | ||
Stockholders' equity: | ||
Preferred Stock, Value, Issued | 0 | 0 |
Common Stock, Value, Issued | 1 | 1 |
Treasury Stock, Value | (115.8) | (103.3) |
Additional paid-in capital | 1,675.9 | 1,665.5 |
Accumulated deficit | (439.8) | (448.2) |
Accumulated other comprehensive loss | (134.8) | (122.1) |
Total stockholders' equity | 986.5 | 992.9 |
Total liabilities and stockholders' equity | $ 1,176 | $ 1,183.9 |
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, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 400,000,000 | |
Common stock, shares issued (in shares) | 97,228,853 | 96,431,604 |
Common Stock, Shares, Outstanding | 91,142,187 | 91,078,376 |
Treasury Stock, Common, Shares | 6,086,666 | 5,353,228 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Allowance for doubtful accounts receivable | $ 0.4 | $ 1.1 |
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, par value (in dollars per share) | $ 0.01 | |
Common stock, shares authorized (in shares) | 400,000,000 | |
Common stock, shares issued (in shares) | 97,228,853 | 96,431,604 |
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, Common |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock, shares issued (in shares) | 95,112,778 | |||||
Treasury Stock, Common, Shares | (3,217,798) | |||||
Balance at Dec. 31, 2021 | $ 1,459.5 | $ 1 | $ 1,639.4 | $ (18.1) | $ (100.4) | $ (62.4) |
Balance at Mar. 31, 2022 | 1,474.1 | 1 | 1,642 | 0 | (102.8) | (66.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares Issued During Period, Value, Exercise of Warrants | $ 3.1 | |||||
Shares Issued During Period, Shares, Exercise of Warrants | 200,000 | |||||
Balance at Dec. 31, 2021 | 1,459.5 | $ 1 | 1,639.4 | (18.1) | (100.4) | $ (62.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (224.8) | |||||
Stock Repurchased During Period, Value | (25.4) | |||||
Net earnings (loss) | (224.8) | |||||
Other comprehensive (loss) earnings, net of tax | (20.3) | (20.3) | ||||
Stock-based compensation expense | 14.8 | 14.8 | ||||
Stock Issued During Period, Shares, New Issues | 499,527 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 6 | $ 0 | 6 | |||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 642,336 | |||||
Balance at Jun. 30, 2022 | 1,203.6 | $ 1 | 1,650.9 | (242.9) | (120.7) | $ (84.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Repurchased During Period, Shares | (1,249,495) | |||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | |||||
Shares Issued During Period, Value, Exercise of Warrants | 0 | 3.1 | $ 3.1 | |||
Shares Issued During Period, Shares, Exercise of Warrants | 203,615 | |||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | (6.2) | |||||
Common stock, shares issued (in shares) | 96,018,208 | |||||
Treasury Stock, Common, Shares | (3,327,578) | |||||
Balance at Mar. 31, 2022 | 1,474.1 | $ 1 | 1,642 | 0 | (102.8) | $ (66.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | (242.9) | |||||
Stock Repurchased During Period, Value | (18.6) | |||||
Net earnings (loss) | (242.9) | |||||
Other comprehensive (loss) earnings, net of tax | (17.9) | (17.9) | ||||
Stock-based compensation expense | 7.2 | 7.2 | ||||
Stock Issued During Period, Shares, New Issues | 167,191 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 1.8 | $ 0 | 1.8 | |||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 69,242 | |||||
Balance at Jun. 30, 2022 | 1,203.6 | $ 1 | 1,650.9 | (242.9) | (120.7) | $ (84.7) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Repurchased During Period, Shares | (936,100) | |||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.1) | |||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | $ (0.1) | (0.1) | ||||
Common stock, shares issued (in shares) | 96,254,641 | |||||
Treasury Stock, Common, Shares | (4,263,678) | |||||
Common stock, shares issued (in shares) | 96,431,604 | 96,431,604 | ||||
Treasury Stock, Common, Shares | 5,353,228 | (5,353,228) | ||||
Balance at Dec. 31, 2022 | $ 992.9 | $ 1 | 1,665.5 | (448.2) | (122.1) | $ (103.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 8.4 | 8.4 | ||||
Stock Repurchased During Period, Value | (12.5) | |||||
Net earnings (loss) | 8.4 | |||||
Other comprehensive (loss) earnings, net of tax | (12.7) | (12.7) | ||||
Stock-based compensation expense | 14.9 | 14.9 | ||||
Stock Issued During Period, Shares, New Issues | 193,241 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 1.6 | $ 0 | 1.6 | |||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 604,008 | |||||
Balance at Jun. 30, 2023 | 986.5 | $ 1 | 1,675.9 | (439.8) | (134.8) | $ (115.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Repurchased During Period, Shares | (733,438) | |||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.8) | |||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | (6.1) | (6.1) | ||||
Common stock, shares issued (in shares) | 97,146,487 | |||||
Treasury Stock, Common, Shares | (5,786,987) | |||||
Balance at Mar. 31, 2023 | 987.4 | $ 1 | 1,668.7 | (453.4) | (118.1) | $ (110.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net earnings (loss) | 13.6 | 13.6 | ||||
Stock Repurchased During Period, Value | (5) | |||||
Net earnings (loss) | 13.6 | |||||
Other comprehensive (loss) earnings, net of tax | (16.7) | (16.7) | ||||
Stock-based compensation expense | 7.1 | 7.1 | ||||
Stock Issued During Period, Shares, New Issues | 10,505 | |||||
Stock Issued During Period, Value, Stock Options Exercised | 0.2 | $ 0 | 0.2 | |||
Restricted Stock, Shares Issued Net of Shares for Tax Withholdings | 71,861 | |||||
Balance at Jun. 30, 2023 | 986.5 | $ 1 | 1,675.9 | $ (439.8) | $ (134.8) | $ (115.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock Repurchased During Period, Shares | (299,679) | |||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.5) | |||||
Restricted Stock, Value, Shares Issued Net of Tax Withholdings | $ (0.1) | $ (0.1) | ||||
Common stock, shares issued (in shares) | 97,228,853 | 97,228,853 | ||||
Treasury Stock, Common, Shares | 6,086,666 | (6,086,666) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating Activities | ||
Net earnings (loss) | $ 8.4 | $ (224.8) |
Adjustments to reconcile net earnings (loss) to cash from operating activities: | ||
Depreciation and amortization | 23.2 | 28.8 |
Stock-based compensation | 14.9 | 14.8 |
Asset Impairment Charges | 0 | 239.8 |
Gain (Loss) on Disposition of Assets | 4.8 | 0 |
Restructuring charges | 1.7 | 0 |
Non-cash interest expense and amortization of debt issuance costs | 0.4 | 0.3 |
Deferred income taxes | 3.7 | 2.1 |
Other, net | (2.8) | (3.9) |
Changes in assets and liabilities (excluding effects of foreign exchange): | ||
Receivables, net | 16.9 | 18 |
Inventories, net | (26.8) | (40.2) |
Prepaid and other current assets | (2.4) | (3.4) |
Accounts payable | 7.3 | (24.1) |
Accrued compensation and employee benefits | (2.7) | (17.6) |
Other accrued expenses | 0.5 | 3 |
Increase Decrease Accrued Taxes, Net | (2.6) | 25 |
Other non-current assets and non-current liabilities | (9.1) | 2.6 |
Net Cash Provided by (Used in) Operating Activities | 22.4 | 20.4 |
Investing Activities | ||
Proceeds from Sale of Property, Plant, and Equipment | 12.1 | 0 |
Capital expenditures | (7.9) | (13.9) |
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 0.7 |
Payments for (Proceeds from) Investments | (0.4) | 0 |
Proceeds from Sale of Short-term Investments | 0.4 | 0 |
Net Cash Provided by (Used in) Investing Activities, Total | 4.2 | (14.6) |
Financing Activities | ||
Repayments of Lines of Credit | 0 | (15) |
Borrowings under revolving credit facility | 0 | 18 |
Payments for Repurchase of Common Stock | 12.5 | 25.4 |
Tax on stock option exercises and restricted and performance stock unit vesting | (6.1) | (6.2) |
Payments of finance lease obligations | (1.2) | (3.6) |
Payments of Debt Issuance Costs | (1.9) | 0 |
Proceeds from exercise of stock options | 1.6 | 6 |
Net Cash Provided by (Used in) Financing Activities, Total | (20.1) | (26.2) |
Effect of Exchange Rate on Cash and Cash Equivalents [Abstract] | ||
Effect of exchange rate changes on cash and cash equivalents | (0.3) | (0.8) |
Net increase (decrease) in cash and cash equivalents | 6.2 | (21.2) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | 54.4 | 47.7 |
Supplemental information - cash paid for: | ||
Income taxes | 7 | 0.7 |
Interest | $ 1.8 | $ 1.4 |
Basis of Presentation (Notes)
Basis of Presentation (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | 1. Basis of Presentation Background - Knowles Corporation (NYSE:KN) is a market leader and global provider of advanced micro-acoustic microphones and balanced armature speakers, audio solutions, and high performance capacitors and radio frequency ("RF") products, serving the consumer electronics, medtech, defense, electric vehicle, industrial, and communications 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 across consumer applications. Knowles is also a leader in hearing health acoustics, high performance capacitors, and RF solutions for a diverse set of markets. The Company's focus on the customer, combined with its unique technology, proprietary manufacturing techniques, and global operational expertise, enable the Company to deliver innovative solutions across multiple applications. 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, 2022 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. 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. Share Repurchase Program - 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. On April 28, 2022, the Company announced that its Board of Directors had increased the authorization by up to $150 million in additional aggregate value. 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. During the six months ended June 30, 2023 and 2022, the Company repurchased 733,438 shares and 1,249,495 shares of common stock, respectively, for a total of $12.5 million and $25.4 million, respectively. Non-cash Investing Activities - Purchases of property, plant, and equipment included in accounts payable at June 30, 2023 and 2022 were $1.8 million and $5.3 million, respectively. These non-cash amounts are not reflected as "Capital expenditures" within Investing Activities on the Consolidated Statements of Cash Flows for the respective periods. |
Recent Accounting Standards (No
Recent Accounting Standards (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Standards | 2. Recent Accounting Standards There are no recently issued or adopted accounting standards that impact the Consolidated Financial Statements of the Company as of June 30, 2023. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 3. Acquisition On May 3, 2021, the Company acquired all of the outstanding shares of common stock of Integrated Microwave Corporation ("IMC") for $81.4 million. During the first quarter of 2022, the Company recorded a purchase price adjustment of $0.7 million that was paid during the second quarter of 2022. The adjustment, which did not impact the Consolidated Statements of Earnings, resulted in an increase to goodwill of $0.7 million. The acquired business provides RF filters to the defense, industrial, and communications markets. The transaction was accounted for under the acquisition method of accounting and the results of operations are included in the Consolidated Financial Statements from the date of acquisition in the Precision Devices ("PD") segment. |
Impairment Charges
Impairment Charges | 6 Months Ended |
Jun. 30, 2023 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Asset Impairment Charges | 4. Impairment Charges The Company tests goodwill for impairment at least annually as of October 1, or more frequently if there are events or circumstances indicating the carrying value of individual reporting units may exceed their respective fair values on a more likely than not basis. Recoverability of goodwill is measured at the reporting unit level. The Company’s three reporting units are Precision Devices ("PD"), MedTech & Specialty Audio ("MSA"), and Consumer MEMS Microphones ("CMM"). The impairment assessment compares the fair value of each reporting unit to its carrying value. Impairment is measured as the amount by which the carrying value of a reporting unit exceeds its fair value. During the second quarter of 2022, the Company identified a triggering event requiring an interim impairment assessment for the CMM reporting unit (previously referred to as Mobile Consumer Electronics or "MCE"), which resulted in a goodwill impairment charge of $239.8 million. The triggering event occurred due to the identification of a rapid decline in current demand and a reduction in the expected future growth rate for global consumer electronics, which resulted in reductions to forecasted revenue and terminal growth rates and profit margins. The goodwill impairment charge is presented within "Impairment charges" in "Operating expenses" on the Consolidated Statements of Earnings. The Company had not incurred any previous goodwill impairment charges. Additionally, during the fourth quarter of 2022, the Company identified another triggering event requiring an impairment assessment of the CMM reporting unit, which resulted in a goodwill impairment charge of $231.1 million. This triggering event occurred due to the identification of further declines in forecasted demand for global consumer electronics, resulting in reductions to forecasted revenue and profit margins. In addition, the Company’s assumptions for weighted average cost of capital and income tax rates increased as a result of rising interest rates and not satisfying certain tax holiday conditions. Fair value was estimated using a discounted cash flow model that included the Company’s market participant assumptions, forecasted future cash flows based on historical performance and future estimated results, determinations of appropriate discount rates, and other assumptions which were considered reasonable and inherent in the discounted cash flow analysis. The fair value estimate was based on known or knowable information at the assessment date. Significant assumptions used in the model included forecasted revenue and terminal growth rates, profit margins, income taxes, and the Company's weighted average cost of capital. The fair value measurements for reporting units are based on significant unobservable inputs, and thus represent Level 3 inputs. Fair value measurements require considerable judgment and are sensitive to changes in underlying assumptions. As a result, there can be no assurance that estimates and assumptions made for purposes of the impairment assessment will prove to be an accurate prediction of the future. Potential circumstances that could have a negative effect on the fair value of our reporting units include, but are not limited to, lower than forecasted growth rates or profit margins and changes in the weighted average cost of capital. A reduction in the estimated fair value of the reporting units could trigger an impairment in the future. The Company cannot predict the occurrence of certain events or changes in circumstances that might adversely affect the carrying value of goodwill. |
Inventories, net (Notes)
Inventories, net (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Inventories, net | 5. Inventories, net The following table details the major components of inventories, net: (in millions) June 30, 2023 December 31, 2022 Raw materials $ 141.4 $ 116.1 Work in progress 29.5 28.3 Finished goods 61.3 62.8 Subtotal 232.2 207.2 Less reserves (40.3) (37.7) Total $ 191.9 $ 169.5 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 6. Property, Plant, and Equipment, net The following table details the major components of property, plant, and equipment, net: (in millions) June 30, 2023 December 31, 2022 Land $ 12.5 $ 12.5 Buildings and improvements 112.9 114.6 Machinery, equipment, and other 487.0 531.2 Subtotal 612.4 658.3 Less accumulated depreciation (462.5) (496.5) Total $ 149.9 $ 161.8 Depreciation expense totaled $8.2 million and $11.0 million for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, depreciation expense totaled $17.4 million and $22.7 million, respectively. During the three months ended June 30, 2023, the Company entered into an agreement to sell certain of its machinery and equipment related to the CMM segment to a third party for total proceeds of $11.4 million, which were received in their entirety in the second quarter of 2023. The Company transferred control of a portion of these assets with a fair value of approximately $5.7 million to the buyer during the three months ended June 30, 2023, resulting in a gain on sale of approximately $5.7 million. This gain on sale is reflected in the Consolidated Statements of Earnings for the three and six months ended June 30, 2023 as follows: $4.8 million has been recognized in "Gain on sale of fixed assets," which relates to the transition to the next generation of MEMS wafer manufacturing technology, and $0.9 million has been recognized within "Restructuring charges - cost of goods sold" - see also Note 8. Restructuring and Related Activities. The Company has deferred the remaining sale proceeds related to this agreement of approximately $5.7 million until it completes the transfer of control of the remaining assets to the buyer, which is expected to occur primarily in the third quarter of 2023. This liability is included in "Other accrued expenses" on the Consolidated Balance Sheet as of June 30, 2023. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 7. Goodwill and Other Intangible Assets There were no changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2023. Other Intangible Assets The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: June 30, 2023 December 31, 2022 (in millions) Gross Carrying Accumulated Gross Carrying Accumulated Amortized intangible assets: Trademarks $ 2.0 $ 0.9 $ 2.0 $ 0.8 Customer relationships 36.4 12.5 36.4 10.3 Developed technology 45.4 23.6 45.4 20.1 Other 2.4 1.9 2.4 1.9 Total 86.2 38.9 86.2 33.1 Unamortized intangible assets: Trademarks 32.0 32.0 Total intangible assets, net $ 79.3 $ 85.1 Amortization expense totaled $2.9 million and $3.0 million for the three months ended June 30, 2023 and 2022, respectively. For the six months ended June 30, 2023 and 2022, amortization expense was $5.8 million and $6.1 million, respectively. Amortization expense for the next five years, based on current definite-lived intangible balances, is estimated to be as follows: (in millions) Q3-Q4 2023 $ 5.8 2024 11.6 2025 11.2 2026 5.3 2027 5.3 2028 and thereafter 8.1 Total $ 47.3 |
Restructuring and Related Activ
Restructuring and Related Activities (Notes) | 3 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities | 8. Restructuring and Related Activities Restructuring and related activities are designed to better align the Company's operations with current market conditions through headcount reductions, targeted facility consolidations, and other measures to further optimize operations and align resources with growth opportunities. The Company recorded restructuring charges of $0.6 million and $1.4 million during the three and six months ended June 30, 2023, respectively, for severance pay and benefits to rationalize the MEMS Microphones product line, which is included within the Consumer MEMS Microphones segment, and $0.3 million for Corporate charges for the six months ended June 30, 2023. The Company recognized the majority of these costs within Operating expenses, resulting in total restructuring charges within Operating expenses of $0.6 million and $1.6 million for the three and six months ended June 30, 2023, respectively. During the three months ended June 30, 2023, the Company recorded a $0.9 million gain on the sale of certain machinery and equipment that was previously written off through restructuring charges within the Consumer MEMS Microphones segment. In addition, during the three months ended June 30, 2023, the Company recorded a $0.8 million reversal of restructuring charges within the Consumer MEMS Microphones related to a change in estimate. The Company recognized these transactions within Gross profit, resulting in total restructuring credits within Gross Profit of $1.7 million and $1.6 million for the three and six months ended June 30, 2023, respectively. During the six months ended June 30, 2022, the Company restructured its MEMS Microphones product line, which is included within the Consumer MEMS Microphones segment. This action resulted in the termination of a research and development project and a reduction in workforce. During the six months ended June 30, 2022, the Company recorded restructuring charges of $5.4 million related to this action, including $4.2 million in contract termination costs and $1.2 million in severance pay and benefits. In addition, during the six months ended June 30, 2022, the Company recorded restructuring charges of $1.2 million for severance pay and benefits to rationalize the Intelligent Audio product line workforce, which is included within the Consumer MEMS Microphones segment, and $0.5 million for other costs. No restructuring charges were recorded within Gross profit for the three and six months ended June 30, 2022. During the three and six months ended June 30, 2022, the Company recorded total restructuring charges within Operating expenses of $0.5 million and $7.1 million, respectively, primarily for contract termination costs and severance pay and benefits associated with the MEMS Microphones product line and other actions to rationalize the Intelligent Audio product line workforce. The following table details restructuring charges incurred by reportable segment for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Consumer MEMS Microphones (1.1) — (0.3) 6.6 Corporate — 0.5 0.3 0.5 Total $ (1.1) $ 0.5 $ — $ 7.1 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, 2022 $ 0.9 $ 21.8 $ 22.7 Restructuring charges 1.7 (1.7) — Payments (1.8) (3.2) (5.0) Other, including foreign currency — 0.4 0.4 Balance at June 30, 2023 $ 0.8 $ 17.3 $ 18.1 The severance and restructuring accruals are recorded in the following line item on the Consolidated Balance Sheets: (in millions) June 30, 2023 December 31, 2022 Other accrued expenses $ 7.5 $ 4.0 Other liabilities 10.6 18.7 Total $ 18.1 $ 22.7 |
Borrowings (Notes)
Borrowings (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | 9. Borrowings Revolving Credit Facility Revolving credit facility borrowings consist of the following: (in millions) June 30, 2023 December 31, 2022 Revolving credit facility $ 45.0 $ 45.0 Less current maturities (1) — — Total long-term debt $ 45.0 $ 45.0 (1) There are no required principal payments due until maturity in February 2028. On February 8, 2023, the Company entered into an Amended and Restated Credit Agreement (the "A&R Credit Agreement") that amends and restates the prior Credit Agreement, dated September 4, 2020 (the “2020 Credit Facility”), and provides for a senior secured revolving credit facility with borrowings in an aggregate principal amount at any time outstanding not to exceed $400.0 million (the "Credit Facility"). The A&R Credit Agreement, among other things, extends the maturity date of the Credit Facility from January 2, 2024 to February 8, 2028, replaces the London Inter-Bank Offered Rate (“LIBOR”) with the Term Secured Overnight Financing Rate (“Term SOFR”) as a reference rate available for borrowings, amends the minimum Interest Coverage Ratio, and amends certain other financial covenants with which the Company must comply, as described below. Up to $100.0 million of the Credit Facility will be available in Euro, Pounds Sterling, and other currencies requested by the Company and up to $50.0 million of the Credit Facility will be made available in the form of letters of credit. Undrawn amounts under the Credit Facility accrue a commitment fee at a per annum rate of 0.225% to 0.350%, based on a leverage ratio grid. At any time during the term of the Credit Facility, the Company will be permitted to increase the commitments under the Credit Facility or to establish one or more incremental term loan facilities under the Credit Facility in an aggregate principal amount not to exceed the sum of $200.0 million, plus additional amounts, so long as the senior secured leverage ratio does not exceed 2.00 to 1.00. The A&R Credit Agreement includes requirements, to be tested quarterly, that the Company maintains (i) a minimum ratio of Consolidated EBITDA to consolidated cash interest expense of 3.00 to 1.00, (the "Interest Coverage Ratio"), (ii) a ratio of total indebtedness, minus netted cash in an aggregate amount not to exceed $50.0 million, to Consolidated EBITDA of 3.75 to 1.00 (the "Total Net Leverage Ratio"), and (iii) a maximum ratio of senior net secured indebtedness to Consolidated EBITDA of 3.25 to 1.00 (the "Senior Secured Net Leverage Ratio"). For these ratios, Consolidated EBITDA and consolidated interest expense are calculated using the most recent four consecutive fiscal quarters in a manner defined in the A&R Credit Agreement. At June 30, 2023, the Company was in compliance with these covenants and it expects to remain in compliance with all of its debt covenants over the next twelve months. The interest rates under the Credit Facility will be, at the Borrowers' option (1) (A) in the case of borrowings denominated in U.S. dollars Term SOFR, (B) in the case of borrowings denominated in Sterling, Daily Simple Sonia, or (C) for borrowings denominated in Euro, EURIBOR, in each case, plus the rates per annum determined from time to time based on the total net leverage ratio of the Company as of the end of and for the most recent period of four fiscal quarters for which financial statements have been delivered (the "Applicable Margin"); or (2) in the case of borrowings denominated in U.S. dollars, alternate base rate ("ABR") (as defined in the A&R Credit Agreement) plus the Applicable Margin. The Applicable Margin for Term SOFR, Daily Simple Sonia, or EURIBOR could range from 1.50% to 2.50% while the Applicable Margin for ABR could range from 0.50% to 1.50%. The weighted-average interest rate on the Company's borrowings under the Credit Facility and the 2020 credit facility was 6.24% and 2.18% for the six months ended June 30, 2023 and 2022, respectively. The weighted-average commitment fee on the revolving line of credit was 0.23% for the six months ended June 30, 2023 and 2022. Warrants In the second quarter of 2016, the Company entered into warrant transactions, whereby the Company sold warrants to acquire shares of the Company's common stock at a strike price of $21.1050 per share (the “Warrants”). The Company received aggregate proceeds of $39.1 million from the sale of the Warrants. The Warrants were separate transactions entered into by the Company, and were not part of the Notes, and were accounted for as part of additional paid-in capital. The Warrants expired during the first quarter of 2022, which resulted in the Company delivering 0.2 million shares of its common stock held in treasury. Settlement of the Warrants resulted in a $3.1 million decrease in treasury stock, which was measured based on the acquisition cost of the delivered shares determined on a first-in, first-out (“FIFO”) basis, offset by an equivalent decrease in additional paid-in capital with no net impact to equity. |
Other Comprehensive Earnings
Other Comprehensive Earnings | 6 Months Ended |
Jun. 30, 2023 | |
Statement of Other Comprehensive Income [Abstract] | |
Other Comprehensive Earnings | 10. Other Comprehensive Earnings The amounts recognized in other comprehensive loss were as follows: Three Months Ended Three Months Ended June 30, 2023 June 30, 2022 (in millions) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation $ (13.3) $ — $ (13.3) $ (15.6) $ — $ (15.6) Employee benefit plans 0.1 0.1 0.2 0.1 (0.2) (0.1) Changes in fair value of cash flow hedges (4.0) 0.4 (3.6) (2.5) 0.3 (2.2) Total other comprehensive loss $ (17.2) $ 0.5 $ (16.7) $ (18.0) $ 0.1 $ (17.9) Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 (in millions) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation $ (9.7) $ — $ (9.7) $ (17.8) $ — $ (17.8) Employee benefit plans 0.3 0.1 0.4 0.3 (0.3) — Changes in fair value of cash flow hedges (4.1) 0.7 (3.4) (2.8) 0.3 (2.5) Total other comprehensive loss $ (13.5) $ 0.8 $ (12.7) $ (20.3) $ — $ (20.3) The following tables summarize the changes in balances of each component of accumulated other comprehensive loss, net of tax during the six months ended June 30, 2023 and 2022: (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2022 $ 1.0 $ (16.3) $ (106.8) $ (122.1) Other comprehensive (loss) earnings, net of tax (3.4) 0.4 (9.7) (12.7) Balance at June 30, 2023 $ (2.4) $ (15.9) $ (116.5) $ (134.8) (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2021 $ 0.3 $ (17.1) $ (83.6) $ (100.4) Other comprehensive loss, net of tax (2.5) — (17.8) (20.3) Balance at June 30, 2022 $ (2.2) $ (17.1) $ (101.4) $ (120.7) The following tables summarize the amounts reclassified from accumulated other comprehensive loss to earnings: Three Months Ended June 30, (in millions) Statement of Earnings Line 2023 2022 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs Other (income) expense, net $ 0.1 $ 0.1 Tax Provision for income taxes 0.1 (0.2) Net of tax $ 0.2 $ (0.1) Cash flow hedges: Net losses reclassified into earnings Cost of goods sold $ 0.5 $ 1.0 Tax Provision for income taxes (0.1) (0.1) Net of tax $ 0.4 $ 0.9 Six Months Ended June 30, (in millions) Statement of Earnings Line 2023 2022 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs Other (income) expense, net $ 0.3 $ 0.3 Tax Provision for income taxes 0.1 (0.3) Net of tax $ 0.4 $ — Cash flow hedges: Net losses reclassified into earnings Cost of goods sold $ 0.6 $ 0.7 Tax Provision for income taxes (0.1) (0.1) Net of tax $ 0.5 $ 0.6 |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | 11. Income Taxes Income taxes for the interim periods presented have been included in the accompanying Consolidated Financial Statements on the basis of an estimated annual effective tax rate ("ETR"). The determination of the consolidated provision for income taxes requires management to make certain judgments and estimates. Changes in the estimated level of annual pre-tax earnings or loss, tax laws, and changes resulting from tax audits can affect the overall ETR, which impacts the level of income tax expense or benefit and net income or loss. Judgments and estimates related to the Company’s projections and assumptions are inherently uncertain and therefore, actual results could differ materially from projections. The Company's ETR for the three and six months ended June 30, 2023 was 21.8% (inclusive of discrete items totaling $0.1 million of expense) and 36.8% (inclusive of discrete items totaling $0.7 million of expense), respectively. The discrete items impacting the tax provision for the three and six months ended June 30, 2023 were primarily attributable to stock-based compensation. Absent the discrete items, the ETR for the three and six months ended June 30, 2023 was 21.3% and 31.6%, respectively. The Company's ETR for the three and six months ended June 30, 2022 was (11.9)% (inclusive of discrete items totaling $0.6 million of benefit) and (14.6)% (inclusive of discrete items totaling $1.6 million of benefit), respectively. The discrete items impacting the tax provision for the three and six months ended June 30, 2023 were primarily attributable to stock-based compensation. Absent the discrete items, the ETR for the three and six months ended June 30, 2022 was (12.2)% and (15.5)%, respectively. The Company's ETR is favorably impacted by tax holidays granted to the Company. The benefit for these incentives for the three and six months ended June 30, 2023 was approximately $0.5 million and $0.6 million, respectively, or $0.01 on a basic per share basis for both periods. The benefit for these incentives for the three and six months ended June 30, 2022 was approximately $2.4 million and $5.0 million, respectively, or $0.03 and $0.05 on a basic per share basis. The decrease in the tax holiday benefits is attributable to the Company not satisfying all of the conditions of our tax holiday in Malaysia during the year ended December 31, 2022 due to the rapid decline in demand for global consumer electronics. As a result, our tax holiday benefit in Malaysia ended on December 31, 2022. The Company believes it is reasonably possible that a U.S. valuation allowance of approximately $11.6 million related to foreign tax credits will be released within the next twelve months. |
Equity Incentive Program (Notes
Equity Incentive Program (Notes) | 3 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Equity Incentive Program | 12. Equity Incentive Program The following table summarizes the stock-based compensation expense recognized by the Company for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Total pre-tax stock-based compensation expense $ 7.1 $ 7.2 $ 14.9 $ 14.8 Tax benefit 0.3 0.8 3.2 4.0 Total stock-based compensation expense, net of tax $ 6.8 $ 6.4 $ 11.7 $ 10.8 Stock Options and SSARs The expense related to stock options granted in the six months ended June 30, 2022 was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below. No stock options were granted during the three and six months ended June 30, 2023. Six Months Ended June 30, 2022 Risk-free interest rate 0.85% Dividend yield —% Expected life (years) 4.5 Volatility 34.3% Fair value at date of grant $6.29 The following table summarizes the Company's stock-settled stock appreciation right ("SSAR") and stock option activity for the six months ended June 30, 2023: 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) (in millions, except share and per share amounts) Outstanding at December 31, 2022 223,564 $ 23.92 2,703,424 $ 16.28 Exercised — — (534,842) 12.45 Forfeited — — (12,684) 20.97 Expired (223,564) 23.92 — — Outstanding at June 30, 2023 — $ — $ — 0.0 2,155,898 $ 17.20 $ 3.2 2.7 Exercisable at June 30, 2023 — $ — $ — 0.0 1,998,054 $ 16.91 $ 3.2 2.5 There was no unrecognized compensation expense related to SSARs at June 30, 2023. At June 30, 2023, unrecognized compensation expense related to stock options not yet exercisable of $0.7 million is expected to be recognized over a weighted-average period of 1.3 years. RSUs The following table summarizes the Company's restricted stock unit ("RSU") activity for the six months ended June 30, 2023: Share units Weighted-average grant date fair value Unvested at December 31, 2022 1,880,521 $ 19.96 Granted 1,251,627 18.81 Vested (1) (813,275) 19.60 Forfeited (82,174) 20.19 Unvested at June 30, 2023 2,236,699 $ 19.44 (1) The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements. At June 30, 2023, $31.1 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 2023, 2022, and 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 following table summarizes the Company's PSU activity for the six months ended June 30, 2023: Share units Weighted-average grant date fair value Unvested at December 31, 2022 833,589 $ 25.12 Granted 320,585 29.75 Vested (1) (261,770) 16.14 Forfeited (37,125) 29.20 Unvested at June 30, 2023 855,279 $ 29.42 (1) The number of PSUs vested includes shares that the Company withheld on behalf of employees to satisfy statutory tax withholding requirements. At June 30, 2023, $14.2 million of unrecognized compensation expense related to PSUs is expected to be recognized over a weighted-average period of 1.7 years. |
Earnings per Share (Notes)
Earnings per Share (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 13. Earnings per Share Basic and diluted earnings per share were computed as follows: Three Months Ended June 30, Six Months Ended June 30, (in millions, except per share amounts) 2023 2022 2023 2022 Net earnings (loss) $ 13.6 $ (242.9) $ 8.4 $ (224.8) Basic: Net earnings (loss) per share $ 0.15 $ (2.64) $ 0.09 $ (2.44) Weighted-average shares outstanding 91.4 92.0 91.4 92.2 Diluted: Net earnings (loss) per share $ 0.15 $ (2.64) $ 0.09 $ (2.44) Weighted-average shares outstanding 91.8 92.0 92.1 92.2 For the three and six months ended June 30, 2023, the weighted-average number of anti-dilutive potential common shares for stock-based awards excluded from the diluted earnings per share calculation above was 3.3 million and 2.4 million, respectively. For the three and six months ended June 30, 2022, the weighted-average number of anti-dilutive potential common shares for stock-based awards excluded from the diluted earnings per share calculation above was 3.0 million and 2.0 million, respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 14. Commitments and Contingent Liabilities From time to time, the Company is involved in various legal proceedings and claims arising in the ordinary course of its business. The majority of these claims and proceedings relate to commercial, warranty, employment, and intellectual property matters. Although the ultimate outcome of any legal proceeding or claim cannot be predicted with certainty, based on present information, including management’s assessment of the merits of the particular claim, the Company believes that the disposition of these legal proceedings or claims, individually or in the aggregate, after taking into account recorded accruals and the availability and limits of insurance coverage, will not have a material adverse effect on its cash flow, results of operations, or financial condition. The Company owns many patents and other intellectual property pertaining to its products, technology, and manufacturing processes. Some of the Company's patents have been and may continue to be infringed upon or challenged by others. In appropriate cases, the Company has taken and will take steps to protect and defend its patents and other intellectual property, including through the use of legal proceedings in various jurisdictions around the world. Such steps have resulted in and may continue to result in retaliatory legal proceedings, including litigation or other legal proceedings in various jurisdictions and forums around the world alleging infringement by the Company of patents owned by others. The costs of investigations and legal proceedings relating to the enforcement and defense of the Company’s intellectual property may be substantial. Additionally, in multi-forum disputes, the Company may incur adverse judgments with regard to certain claims in certain jurisdictions and forums while still contesting other related claims against the same opposing party in other jurisdictions and forums. Intellectual Property Infringement Claims The Company may, on a limited customer specific basis, provide contractual indemnities for certain losses that arise out of claims that its products infringe on the intellectual property of others. It is not possible to determine the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. Historically, the Company has not made significant payments under such indemnity arrangements. The Company’s legal accruals associated with these indemnity arrangements were not significant at June 30, 2023 and December 31, 2022. |
Segment Information (Notes)
Segment Information (Notes) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | 15. Segment Information The Company's three reportable segments are Precision Devices, MedTech & Specialty Audio, and Consumer MEMS Microphones. Information regarding the Company’s reportable segments is as follows (certain prior year information has been reclassified to conform to the current year presentation) : Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Revenues: Precision Devices $ 47.8 $ 59.5 $ 101.5 $ 115.2 MedTech & Specialty Audio 60.6 61.6 106.1 121.1 Consumer MEMS Microphones 64.6 66.9 109.7 153.1 Total revenues $ 173.0 $ 188.0 $ 317.3 $ 389.4 Earnings (loss) before interest and income taxes: Precision Devices $ 4.8 $ 11.0 $ 15.5 $ 23.3 MedTech & Specialty Audio 23.6 23.1 35.0 44.8 Consumer MEMS Microphones 6.3 (239.3) (1.9) (238.8) Total segments 34.7 (205.2) 48.6 (170.7) Corporate expense / other 16.5 11.1 33.7 23.8 Interest expense, net 0.8 0.8 1.6 1.6 Earnings (loss) before income taxes 17.4 (217.1) 13.3 (196.1) Provision for income taxes 3.8 25.8 4.9 28.7 Net earnings (loss) $ 13.6 $ (242.9) $ 8.4 $ (224.8) Information regarding assets of the Company's reportable segments: Total Assets (in millions) June 30, 2023 December 31, 2022 Precision Devices $ 290.1 $ 275.7 MedTech & Specialty Audio 339.9 358.1 Consumer MEMS Microphones 542.7 547.3 Corporate / eliminations 3.3 2.8 Total $ 1,176.0 $ 1,183.9 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 June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Asia $ 108.9 $ 113.0 $ 188.9 $ 241.9 United States 34.0 44.7 69.3 85.6 Europe 25.7 27.6 49.8 55.7 Other Americas 1.3 1.1 3.4 2.6 Other 3.1 1.6 5.9 3.6 Total $ 173.0 $ 188.0 $ 317.3 $ 389.4 Receivables, net from contracts with customers were $107.3 million and $125.7 million as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, our total remaining performance obligations were immaterial. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net earnings (loss) | $ 13.6 | $ (242.9) | $ 8.4 | $ (224.8) |
Insider Trading Arrangements
Insider Trading Arrangements - shares | 3 Months Ended | |||
May 31, 2023 | May 25, 2023 | May 12, 2023 | Jun. 30, 2023 | |
Jeffrey Niew [Member] | ||||
Trading Arrangements, by Individual | ||||
Name | Jeffrey Niew | |||
Title | President & Chief Executive Officer | |||
Adoption Date | 5/12/2023 | |||
Aggregate Available | 125,000 | |||
John Anderson [Member] | ||||
Trading Arrangements, by Individual | ||||
Name | John Anderson | |||
Title | Senior Vice President & Chief Financial Officer | |||
Adoption Date | 5/25/2023 | |||
Aggregate Available | 20,000 | |||
Daniel Giesecke [Member] | ||||
Trading Arrangements, by Individual | ||||
Name | Daniel Giesecke | |||
Title | Senior Vice President & Chief Operating Officer | |||
Adoption Date | 5/31/2023 | |||
Aggregate Available | 10,075 |
Recent Accounting Standards New
Recent Accounting Standards New Accounting Pronouncements, Policy (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | There are no recently issued or adopted accounting standards that impact the Consolidated Financial Statements of the Company as of June 30, 2023. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory, Net [Abstract] | |
Components of Inventory | The following table details the major components of inventories, net: (in millions) June 30, 2023 December 31, 2022 Raw materials $ 141.4 $ 116.1 Work in progress 29.5 28.3 Finished goods 61.3 62.8 Subtotal 232.2 207.2 Less reserves (40.3) (37.7) Total $ 191.9 $ 169.5 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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) June 30, 2023 December 31, 2022 Land $ 12.5 $ 12.5 Buildings and improvements 112.9 114.6 Machinery, equipment, and other 487.0 531.2 Subtotal 612.4 658.3 Less accumulated depreciation (462.5) (496.5) Total $ 149.9 $ 161.8 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | There were no changes in the carrying value of goodwill by reportable segment for the six months ended June 30, 2023. |
Schedule of Intangible Assets | The gross carrying value and accumulated amortization for each major class of intangible assets are as follows: June 30, 2023 December 31, 2022 (in millions) Gross Carrying Accumulated Gross Carrying Accumulated Amortized intangible assets: Trademarks $ 2.0 $ 0.9 $ 2.0 $ 0.8 Customer relationships 36.4 12.5 36.4 10.3 Developed technology 45.4 23.6 45.4 20.1 Other 2.4 1.9 2.4 1.9 Total 86.2 38.9 86.2 33.1 Unamortized intangible assets: Trademarks 32.0 32.0 Total intangible assets, net $ 79.3 $ 85.1 |
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) Q3-Q4 2023 $ 5.8 2024 11.6 2025 11.2 2026 5.3 2027 5.3 2028 and thereafter 8.1 Total $ 47.3 |
Restructuring and Related Act_2
Restructuring and Related Activities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Consumer MEMS Microphones (1.1) — (0.3) 6.6 Corporate — 0.5 0.3 0.5 Total $ (1.1) $ 0.5 $ — $ 7.1 |
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, 2022 $ 0.9 $ 21.8 $ 22.7 Restructuring charges 1.7 (1.7) — Payments (1.8) (3.2) (5.0) Other, including foreign currency — 0.4 0.4 Balance at June 30, 2023 $ 0.8 $ 17.3 $ 18.1 |
Schedule of Restructuring Reserve by Balance Sheet Location | The severance and restructuring accruals are recorded in the following line item on the Consolidated Balance Sheets: (in millions) June 30, 2023 December 31, 2022 Other accrued expenses $ 7.5 $ 4.0 Other liabilities 10.6 18.7 Total $ 18.1 $ 22.7 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Revolving credit facility borrowings consist of the following: (in millions) June 30, 2023 December 31, 2022 Revolving credit facility $ 45.0 $ 45.0 Less current maturities (1) — — Total long-term debt $ 45.0 $ 45.0 |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, 2023 June 30, 2022 (in millions) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation $ (13.3) $ — $ (13.3) $ (15.6) $ — $ (15.6) Employee benefit plans 0.1 0.1 0.2 0.1 (0.2) (0.1) Changes in fair value of cash flow hedges (4.0) 0.4 (3.6) (2.5) 0.3 (2.2) Total other comprehensive loss $ (17.2) $ 0.5 $ (16.7) $ (18.0) $ 0.1 $ (17.9) Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 (in millions) Pre-tax Tax Net of tax Pre-tax Tax Net of tax Foreign currency translation $ (9.7) $ — $ (9.7) $ (17.8) $ — $ (17.8) Employee benefit plans 0.3 0.1 0.4 0.3 (0.3) — Changes in fair value of cash flow hedges (4.1) 0.7 (3.4) (2.8) 0.3 (2.5) Total other comprehensive loss $ (13.5) $ 0.8 $ (12.7) $ (20.3) $ — $ (20.3) |
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 six months ended June 30, 2023 and 2022: (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2022 $ 1.0 $ (16.3) $ (106.8) $ (122.1) Other comprehensive (loss) earnings, net of tax (3.4) 0.4 (9.7) (12.7) Balance at June 30, 2023 $ (2.4) $ (15.9) $ (116.5) $ (134.8) (in millions) Cash flow hedges Employee benefit plans Cumulative foreign currency translation adjustments Total Balance at December 31, 2021 $ 0.3 $ (17.1) $ (83.6) $ (100.4) Other comprehensive loss, net of tax (2.5) — (17.8) (20.3) Balance at June 30, 2022 $ (2.2) $ (17.1) $ (101.4) $ (120.7) The following tables summarize the amounts reclassified from accumulated other comprehensive loss to earnings: Three Months Ended June 30, (in millions) Statement of Earnings Line 2023 2022 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs Other (income) expense, net $ 0.1 $ 0.1 Tax Provision for income taxes 0.1 (0.2) Net of tax $ 0.2 $ (0.1) Cash flow hedges: Net losses reclassified into earnings Cost of goods sold $ 0.5 $ 1.0 Tax Provision for income taxes (0.1) (0.1) Net of tax $ 0.4 $ 0.9 Six Months Ended June 30, (in millions) Statement of Earnings Line 2023 2022 Pension and post-retirement benefit plans: Amortization or settlement of actuarial losses and prior service costs Other (income) expense, net $ 0.3 $ 0.3 Tax Provision for income taxes 0.1 (0.3) Net of tax $ 0.4 $ — Cash flow hedges: Net losses reclassified into earnings Cost of goods sold $ 0.6 $ 0.7 Tax Provision for income taxes (0.1) (0.1) Net of tax $ 0.5 $ 0.6 |
Equity Incentive Program (Table
Equity Incentive Program (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Share-Based Compensation, Employee Stock Purchase Plan, Activity | The following table summarizes the stock-based compensation expense recognized by the Company for the periods presented: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Total pre-tax stock-based compensation expense $ 7.1 $ 7.2 $ 14.9 $ 14.8 Tax benefit 0.3 0.8 3.2 4.0 Total stock-based compensation expense, net of tax $ 6.8 $ 6.4 $ 11.7 $ 10.8 |
Schedule of Black-Scholes Option-Pricing Assumptions | The expense related to stock options granted in the six months ended June 30, 2022 was estimated on the date of grant using a Black-Scholes option-pricing model based on the assumptions shown in the table below. No stock options were granted during the three and six months ended June 30, 2023. Six Months Ended June 30, 2022 Risk-free interest rate 0.85% Dividend yield —% Expected life (years) 4.5 Volatility 34.3% Fair value at date of grant $6.29 |
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 six months ended June 30, 2023: 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) (in millions, except share and per share amounts) Outstanding at December 31, 2022 223,564 $ 23.92 2,703,424 $ 16.28 Exercised — — (534,842) 12.45 Forfeited — — (12,684) 20.97 Expired (223,564) 23.92 — — Outstanding at June 30, 2023 — $ — $ — 0.0 2,155,898 $ 17.20 $ 3.2 2.7 Exercisable at June 30, 2023 — $ — $ — 0.0 1,998,054 $ 16.91 $ 3.2 2.5 |
Schedule of Restricted Stock Units Award Activity | The following table summarizes the Company's restricted stock unit ("RSU") activity for the six months ended June 30, 2023: Share units Weighted-average grant date fair value Unvested at December 31, 2022 1,880,521 $ 19.96 Granted 1,251,627 18.81 Vested (1) (813,275) 19.60 Forfeited (82,174) 20.19 Unvested at June 30, 2023 2,236,699 $ 19.44 (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 six months ended June 30, 2023: Share units Weighted-average grant date fair value Unvested at December 31, 2022 833,589 $ 25.12 Granted 320,585 29.75 Vested (1) (261,770) 16.14 Forfeited (37,125) 29.20 Unvested at June 30, 2023 855,279 $ 29.42 (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) | 6 Months Ended |
Jun. 30, 2023 | |
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 June 30, Six Months Ended June 30, (in millions, except per share amounts) 2023 2022 2023 2022 Net earnings (loss) $ 13.6 $ (242.9) $ 8.4 $ (224.8) Basic: Net earnings (loss) per share $ 0.15 $ (2.64) $ 0.09 $ (2.44) Weighted-average shares outstanding 91.4 92.0 91.4 92.2 Diluted: Net earnings (loss) per share $ 0.15 $ (2.64) $ 0.09 $ (2.44) Weighted-average shares outstanding 91.8 92.0 92.1 92.2 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Revenue and Earnings from continuing operations by market segment | Three Months Ended June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Revenues: Precision Devices $ 47.8 $ 59.5 $ 101.5 $ 115.2 MedTech & Specialty Audio 60.6 61.6 106.1 121.1 Consumer MEMS Microphones 64.6 66.9 109.7 153.1 Total revenues $ 173.0 $ 188.0 $ 317.3 $ 389.4 Earnings (loss) before interest and income taxes: Precision Devices $ 4.8 $ 11.0 $ 15.5 $ 23.3 MedTech & Specialty Audio 23.6 23.1 35.0 44.8 Consumer MEMS Microphones 6.3 (239.3) (1.9) (238.8) Total segments 34.7 (205.2) 48.6 (170.7) Corporate expense / other 16.5 11.1 33.7 23.8 Interest expense, net 0.8 0.8 1.6 1.6 Earnings (loss) before income taxes 17.4 (217.1) 13.3 (196.1) Provision for income taxes 3.8 25.8 4.9 28.7 Net earnings (loss) $ 13.6 $ (242.9) $ 8.4 $ (224.8) |
Reconciliation of Assets from Segment to Consolidated | Information regarding assets of the Company's reportable segments: Total Assets (in millions) June 30, 2023 December 31, 2022 Precision Devices $ 290.1 $ 275.7 MedTech & Specialty Audio 339.9 358.1 Consumer MEMS Microphones 542.7 547.3 Corporate / eliminations 3.3 2.8 Total $ 1,176.0 $ 1,183.9 |
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 June 30, Six Months Ended June 30, (in millions) 2023 2022 2023 2022 Asia $ 108.9 $ 113.0 $ 188.9 $ 241.9 United States 34.0 44.7 69.3 85.6 Europe 25.7 27.6 49.8 55.7 Other Americas 1.3 1.1 3.4 2.6 Other 3.1 1.6 5.9 3.6 Total $ 173.0 $ 188.0 $ 317.3 $ 389.4 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Millions | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Apr. 28, 2022 | Feb. 24, 2020 | |
Noncash Investing and Financing Items | ||||
Purchases of property and equipment included in accounts payable | $ 1.8 | $ 5.3 | ||
Stock Repurchase Program, Authorized Amount | $ 100 | |||
Share Repurchase Program, Authorized Amount, Increase (Decrease) | $ 150 | |||
Payments for Repurchase of Common Stock | $ 12.5 | $ 25.4 |
Business Combinations (Details)
Business Combinations (Details) - Integrated Microwave Corporation - USD ($) $ in Millions | 3 Months Ended | |
May 03, 2021 | Mar. 31, 2022 | |
Business Combination Segment Allocation [Line Items] | ||
Payments to Acquire Businesses, Gross | $ 81.4 | |
Precision Devices | ||
Business Combination Segment Allocation [Line Items] | ||
Goodwill, Purchase Accounting Adjustments | $ 0.7 |
Impairment Charges (Details)
Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |||||
Asset Impairment Charges | $ 0 | $ 231.1 | $ 239.8 | $ 0 | $ 239.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory, Net [Abstract] | ||
Raw materials | $ 141.4 | $ 116.1 |
Work in progress | 29.5 | 28.3 |
Finished goods | 61.3 | 62.8 |
Subtotal | 232.2 | 207.2 |
Less reserves | (40.3) | (37.7) |
Total | $ 191.9 | $ 169.5 |
Property, Plant and Equipment,
Property, Plant and Equipment, net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment | |||||
Cost | $ 612.4 | $ 612.4 | $ 658.3 | ||
Less accumulated depreciation | (462.5) | (462.5) | (496.5) | ||
Total | 149.9 | 149.9 | 161.8 | ||
Depreciation | 8.2 | $ 11 | 17.4 | $ 22.7 | |
Proceeds from Sale of Property, Plant, and Equipment | 12.1 | 0 | |||
Gain (Loss) on Disposition of Assets | 4.8 | $ 0 | 4.8 | $ 0 | |
Proceeds from the sale of fixed assets, fair value of control transferred [Line Items] | 5.7 | ||||
Gain on sale of fixed assets | |||||
Property, Plant and Equipment | |||||
Gain (Loss) on Disposition of Assets | 4.8 | ||||
Cost of Goods Sold, Restructuring Charges | |||||
Property, Plant and Equipment | |||||
Gain (Loss) on Disposition of Assets | 0.9 | ||||
Consumer MEMS Microphones | |||||
Property, Plant and Equipment | |||||
Proceeds from Sale of Property, Plant, and Equipment | 11.4 | ||||
Gain (Loss) on Disposition of Assets | 5.7 | ||||
Deferred Revenue | 5.7 | 5.7 | |||
Consumer MEMS Microphones | Cost of Goods Sold, Restructuring Charges | |||||
Property, Plant and Equipment | |||||
Gain (Loss) on Disposition of Assets | (0.9) | ||||
Land | |||||
Property, Plant and Equipment | |||||
Cost | 12.5 | 12.5 | 12.5 | ||
Buildings and improvements | |||||
Property, Plant and Equipment | |||||
Cost | 112.9 | 112.9 | 114.6 | ||
Machinery, equipment, and other | |||||
Property, Plant and Equipment | |||||
Cost | $ 487 | $ 487 | $ 531.2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | |||||
Goodwill, Other Increase (Decrease) | $ 0 | ||||
Asset Impairment Charges | $ 0 | $ 231.1 | $ 239.8 | $ 0 | $ 239.8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets and Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets | |||||
Gross carrying amount | $ 86.2 | $ 86.2 | $ 86.2 | ||
Accumulated amortization | 38.9 | 38.9 | 33.1 | ||
Intangible assets, net | 79.3 | 79.3 | 85.1 | ||
Amortization expense | 2.9 | $ 3 | 5.8 | $ 6.1 | |
2023 | 5.8 | 5.8 | |||
2024 | 11.6 | 11.6 | |||
2025 | 11.2 | 11.2 | |||
2026 | 5.3 | 5.3 | |||
2027 | 5.3 | 5.3 | |||
Finite-Lived Intangible Asset, Expected Amortization, after Year Five | 8.1 | 8.1 | |||
Finite-Lived Intangible Assets, Net | 47.3 | 47.3 | |||
Trademarks | |||||
Finite-Lived Intangible Assets | |||||
Unamortized intangible assets, gross carrying amount | 32 | 32 | 32 | ||
Trademarks | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount | 2 | 2 | 2 | ||
Accumulated amortization | 0.9 | 0.9 | 0.8 | ||
Customer relationships | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount | 36.4 | 36.4 | 36.4 | ||
Accumulated amortization | 12.5 | 12.5 | 10.3 | ||
Unpatented Technology [Member] | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount | 45.4 | 45.4 | 45.4 | ||
Accumulated amortization | 23.6 | 23.6 | 20.1 | ||
Other | |||||
Finite-Lived Intangible Assets | |||||
Gross carrying amount | 2.4 | 2.4 | 2.4 | ||
Accumulated amortization | $ 1.9 | $ 1.9 | $ 1.9 |
Restructuring and Related Act_3
Restructuring and Related Activities - Restructuring Charges by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 0.6 | $ 0.5 | $ 1.6 | $ 7.1 |
Restructuring and Related Cost, Incurred Cost | 0 | |||
Gain (Loss) on Disposition of Assets | 4.8 | 0 | 4.8 | 0 |
MEMS Microphones product line | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 5.4 | |||
Severance Pay and Contract Termination and Other Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | (1.1) | 0.5 | 0 | 7.1 |
Severance Pay and Benefits | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 1.7 | |||
Contract Termination and Other Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | (1.7) | |||
Consumer MEMS Microphones | ||||
Restructuring Cost and Reserve | ||||
Gain (Loss) on Disposition of Assets | 5.7 | |||
Operating Segments | Consumer MEMS Microphones | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | (1.1) | 0 | ||
Operating Segments | Consumer MEMS Microphones | Severance Pay and Contract Termination and Other Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | (0.3) | 6.6 | ||
Corporate, Non-Segment [Member] | Severance Pay and Contract Termination and Other Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 0.3 | 0.5 | ||
Corporate, Non-Segment [Member] | Corporate, Non-Segment [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 0 | 0.5 | ||
Cost of Goods Sold, Restructuring Charges | ||||
Restructuring Cost and Reserve | ||||
Gain (Loss) on Disposition of Assets | 0.9 | |||
Cost of Goods Sold, Restructuring Charges | Severance Pay and Contract Termination and Other Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | (1.7) | 0 | (1.6) | 0 |
Cost of Goods Sold, Restructuring Charges | Contract Termination [Member] | MEMS Microphones product line | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | (0.8) | |||
Cost of Goods Sold, Restructuring Charges | Consumer MEMS Microphones | ||||
Restructuring Cost and Reserve | ||||
Gain (Loss) on Disposition of Assets | (0.9) | |||
Operating Expense | Severance Pay and Contract Termination and Other Costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 0.6 | $ 0.5 | 1.6 | 7.1 |
Restructuring Charges | Severance Pay and Benefits | MEMS Microphones product line | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 1.2 | |||
Restructuring Charges | Severance Pay and Benefits | Consumer MEMS Microphones | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 0.6 | 1.4 | ||
Restructuring Charges | Contract Termination [Member] | MEMS Microphones product line | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 4.2 | |||
Restructuring Charges | Consumer MEMS Microphones | Severance Pay and Benefits | Intelligent Audio [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | 1.2 | |||
Restructuring Charges | Corporate, Non-Segment [Member] | Other Restructuring | ||||
Restructuring Cost and Reserve | ||||
Restructuring charges | $ 0.3 | $ 0.5 |
Restructuring and Related Act_4
Restructuring and Related Activities - Restructuring Accrual Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | $ 22.7 | |||
Restructuring charges | 0 | |||
Payments | (5) | |||
Restructuring Reserve, Accrual Adjustment | 0.4 | |||
Severance and other restructuring reserve, ending balance | $ 18.1 | 18.1 | ||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | 0.6 | $ 0.5 | 1.6 | $ 7.1 |
MEMS Microphones product line | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | 5.4 | |||
Severance Pay and Contract Termination and Other Costs | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | (1.1) | 0.5 | 0 | 7.1 |
Severance Pay and Benefits | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 0.9 | |||
Restructuring charges | 1.7 | |||
Payments | (1.8) | |||
Restructuring Reserve, Accrual Adjustment | 0 | |||
Severance and other restructuring reserve, ending balance | 0.8 | 0.8 | ||
Contract Termination and Other Costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Severance and other restructuring reserve, beginning balance | 21.8 | |||
Restructuring charges | (1.7) | |||
Payments | (3.2) | |||
Restructuring Reserve, Accrual Adjustment | 0.4 | |||
Severance and other restructuring reserve, ending balance | 17.3 | 17.3 | ||
Cost of Goods Sold, Restructuring Charges | Severance Pay and Contract Termination and Other Costs | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | (1.7) | 0 | (1.6) | 0 |
Cost of Goods Sold, Restructuring Charges | Contract Termination [Member] | MEMS Microphones product line | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | (0.8) | |||
Operating Expense | Severance Pay and Contract Termination and Other Costs | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | $ 0.6 | $ 0.5 | $ 1.6 | 7.1 |
Restructuring Charges | Severance Pay and Benefits | MEMS Microphones product line | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | 1.2 | |||
Restructuring Charges | Contract Termination [Member] | MEMS Microphones product line | ||||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||||
Restructuring charges | $ 4.2 |
Restructuring and Related Act_5
Restructuring and Related Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Restructuring Cost and Reserve | ||
Severance and restructuring accrual | $ 18.1 | $ 22.7 |
Other accrued expenses | ||
Restructuring Cost and Reserve | ||
Severance and restructuring accrual | 7.5 | 4 |
Other liabilities | ||
Restructuring Cost and Reserve | ||
Severance and restructuring accrual | $ 10.6 | $ 18.7 |
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 | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Derivative | ||||
Cost of goods sold | $ 105.8 | $ 110.3 | $ 196.2 | $ 228.4 |
Other expense (income), net | $ 1.3 | $ (1.7) | $ (1) | $ (1.2) |
Borrowings (Details)
Borrowings (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Long-term borrowings | ||||
Long-term Line of Credit | $ 45,000,000 | |||
Less: current maturities | 45,000,000 | $ 45,000,000 | ||
Long-term portion | 45,000,000 | 45,000,000 | ||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 45,000,000 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 0 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.23% | |||
Debt instrument, Convenant, Senior Secured Leverage Ratio Under Accordion Feature, Maximum | 2 | |||
Debt Instrument, Covenant, EBITDA to Interest Ratio, Minimum | 3 | |||
Debt Instrument, Covenant, Debt to EBITDA, Maximum | 3.75 | |||
Debt Instrument, Covenant, Senior Secured Leverage Ratio, Maximum | 3.25 | |||
Shares Issued During Period, Value, Exercise of Warrants | $ 0 | |||
Treasury Stock, Common | ||||
Long-term borrowings | ||||
Shares Issued During Period, Value, Exercise of Warrants | $ 3,100,000 | $ 3,100,000 | ||
Credit Facility due February 8, 2028 | ||||
Long-term borrowings | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | |||
Line of Credit Facility, Accordion Feature, Increase Limit | $ 200,000,000 | |||
Credit Facility due February 8, 2028 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Long-term borrowings | ||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 6.24% | |||
Credit Facility due February 8, 2028 | Minimum [Member] | ||||
Long-term borrowings | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.225% | |||
Credit Facility due February 8, 2028 | Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Long-term borrowings | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Credit Facility due February 8, 2028 | Maximum [Member] | ||||
Long-term borrowings | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | |||
Credit Facility due February 8, 2028 | Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||
Long-term borrowings | ||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||
Credit Facility due February 8, 2028 | Euro Member Countries, Euro | ||||
Long-term borrowings | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000,000 | |||
Line of Credit | Credit Facility due January 2, 2024 [Member] | ||||
Long-term borrowings | ||||
Long-term Line of Credit | 45,000,000 | 45,000,000 | ||
Line of Credit, Current | 0 | $ 0 | ||
Letter of Credit | Credit Facility due February 8, 2028 | ||||
Long-term borrowings | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 |
Borrowings Convertible Debt (De
Borrowings Convertible Debt (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2018 | Jun. 30, 2022 | May 04, 2016 | |
Schedule of Convertible Debt | ||||
Shares Issued During Period, Value, Exercise of Warrants | $ 0 | |||
Treasury Stock, Common | ||||
Schedule of Convertible Debt | ||||
Shares Issued During Period, Shares, Exercise of Warrants | 200,000 | 203,615 | ||
Shares Issued During Period, Value, Exercise of Warrants | $ (3.1) | $ (3.1) | ||
Convertible Debt | Convertible Notes Due Twenty Twenty One | ||||
Schedule of Convertible Debt | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 21.1050 | |||
Proceeds from issuance of warrants | $ 39.1 |
Borrowings Schedule of Revolvin
Borrowings Schedule of Revolving Credit Facility (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Long-term Line of Credit | $ 45,000,000 | |||
Debt Instrument, Covenant, EBITDA to Interest Ratio, Minimum | 3 | |||
Debt Instrument, Covenant, Debt to EBITDA, Maximum | 3.75 | |||
Debt Instrument, Covenant, Senior Secured Leverage Ratio, Maximum | 3.25 | |||
Line of Credit Facility, Commitment Fee Percentage | 0.23% | |||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | $ 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 0 | |||
Shares Issued During Period, Value, Exercise of Warrants | $ 0 | |||
Treasury Stock, Common | ||||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Shares Issued During Period, Value, Exercise of Warrants | $ (3,100,000) | $ (3,100,000) | ||
Line of Credit | Weighted Average | ||||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.23% | |||
Credit Facility due January 2, 2024 [Member] | London Interbank Offered Rate LIBOR prior to 2023 | ||||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.18% | |||
Credit Facility due January 2, 2024 [Member] | Line of Credit | ||||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Long-term Line of Credit | $ 45,000,000 | $ 45,000,000 | ||
Credit Facility due February 8, 2028 | ||||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000,000 | |||
Credit Facility due February 8, 2028 | Minimum [Member] | ||||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.225% | |||
Credit Facility due February 8, 2028 | 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 February 8, 2028 | Maximum [Member] | ||||
Schedule of Term Loan and Revolving Credit Facilities [Line Items] | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | |||
Credit Facility due February 8, 2028 | 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% |
Other Comprehensive Loss - OCI
Other Comprehensive Loss - OCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign currency translation adjustments [Abstract] | ||||
Foreign currency translation | $ (13.3) | $ (15.6) | $ (9.7) | $ (17.8) |
Foreign currency translation, tax | 0 | 0 | 0 | 0 |
Foreign currency translation, net of tax | (13.3) | (15.6) | (9.7) | (17.8) |
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 | 0.1 | 0.1 | 0.3 | 0.3 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax, Attributable to Parent | 0.1 | (0.2) | 0.1 | (0.3) |
Net change in employee benefit plans | 0.2 | (0.1) | 0.4 | 0 |
Total cash flow hedges | (3.6) | (2.2) | (3.4) | (2.5) |
Changes in fair value of cash flow hedges: | ||||
Changes in fair value of cash flow hedges, before tax | (4) | (2.5) | (4.1) | (2.8) |
Changes in fair value of cash flow hedges, tax | 0.4 | 0.3 | 0.7 | 0.3 |
Total other comprehensive earnings [Abstract] | ||||
Other comprehensive loss, before tax | (17.2) | (18) | (13.5) | (20.3) |
Other comprehensive loss, tax | 0.5 | 0.1 | 0.8 | 0 |
Other comprehensive loss, net of tax | (16.7) | (17.9) | (12.7) | (20.3) |
Net losses reclassified into earnings | $ 0.4 | $ 0.9 | $ 0.5 | $ 0.6 |
Other Comprehensive Loss - AOCI
Other Comprehensive Loss - AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||
Amortization or settlement of actuarial losses and prior service costs | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.3 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax | (0.1) | 0.2 | (0.1) | 0.3 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax | 0.2 | (0.1) | 0.4 | 0 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | 0.5 | 1 | 0.6 | 0.7 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax | (0.1) | (0.1) | (0.1) | (0.1) |
Net losses reclassified into earnings | 0.4 | 0.9 | 0.5 | 0.6 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning balance | (122.1) | (100.4) | ||
Other comprehensive (loss) earnings, net of tax | (16.7) | (17.9) | (12.7) | (20.3) |
Ending balance | (134.8) | (120.7) | (134.8) | (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 | 0.3 | ||
Other comprehensive (loss) earnings, net of tax | (3.4) | (2.5) | ||
Ending balance | (2.4) | (2.2) | (2.4) | (2.2) |
Employee benefit plans | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning balance | (16.3) | (17.1) | ||
Other comprehensive (loss) earnings, net of tax | 0.4 | 0 | ||
Ending balance | (15.9) | (17.1) | (15.9) | (17.1) |
Cumulative foreign currency translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||
Beginning balance | (106.8) | (83.6) | ||
Other comprehensive (loss) earnings, net of tax | (9.7) | (17.8) | ||
Ending balance | $ (116.5) | $ (101.4) | $ (116.5) | $ (101.4) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2024 | |
Income Tax Holiday [Line Items] | |||||
Share-based Payment Arrangement, Expense | $ 7.1 | $ 7.2 | $ 14.9 | $ 14.8 | |
Effective tax rate (benefit) provision | 21.80% | (11.90%) | 36.80% | (14.60%) | |
Income Tax Expense (Benefit) | $ 3.8 | $ 25.8 | $ 4.9 | $ 28.7 | |
Other expense (income), net | 1.3 | (1.7) | (1) | (1.2) | |
Effective Income Tax Rate Reconciliation, Discrete Items | $ 0.1 | $ (0.6) | $ 0.7 | $ (1.6) | |
Effective Tax Rate Excluding Discrete Items | 21.30% | 12.20% | 31.60% | 15.50% | |
Share-based Payment Arrangement, Expense, Tax Benefit | $ 0.3 | $ 0.8 | $ 3.2 | $ 4 | |
Maximum [Member] | Subsequent Event | |||||
Income Tax Holiday [Line Items] | |||||
Valuation Allowance Release within the Next Twelve Months [Line Items] | $ 11.6 | ||||
Foreign Tax Authority | |||||
Income Tax Holiday [Line Items] | |||||
Effective income tax rate reconciliation, tax holiday | $ 0.5 | $ 2.4 | $ 0.6 | $ 5 | |
Holiday benefit (usd per share) | $ 0.03 | $ 0.05 | |||
Income Tax Holiday, Income Tax Expense Per Share | $ 0.01 | $ 0.01 |
Equity Incentive Program - Stoc
Equity Incentive Program - Stock Options and SSARs (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Payment Arrangement, Expense | $ 7,100,000 | $ 7,200,000 | $ 14,900,000 | $ 14,800,000 |
Share-based Payment Arrangement, Expense, Tax Benefit | 300,000 | 800,000 | 3,200,000 | 4,000,000 |
Share-Based Payment Arrangement, Expense, after Tax | 6,800,000 | 6,400,000 | 11,700,000 | 10,800,000 |
SARS and Options, Additional Disclosures | ||||
Share-based Payment Arrangement, Expense, Tax Benefit | 300,000 | $ 800,000 | 3,200,000 | $ 4,000,000 |
SSARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 0 | $ 0 | ||
Number of Shares [Roll Forward] | ||||
Beginning balance | 223,564 | |||
Exercised | 0 | |||
Forfeited | 0 | |||
Expired | (223,564) | |||
Ending balance | 0 | 0 | ||
Exercised | 0 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other than Options, Expired in Period, Weighted Average Exercise Price | $ 23.92 | |||
Weighted Average Grant Date Fair Value | ||||
Beginning balance | 23.92 | |||
Exercised | 0 | |||
Forfeited | 0 | |||
Ending balance | $ 0 | 0 | ||
Exercisable | $ 0 | $ 0 | ||
SARS and Options, Additional Disclosures | ||||
SSARs, aggregate intrinsic value, outstanding | $ 0 | $ 0 | ||
SSARs, aggregate intrinsic value, exercisable | 0 | $ 0 | ||
SSARs, weighted average remaining contractual terms, outstanding | 0 years | |||
SSARs, weighted average remaining contractual term, exercisable | 0 years | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 700,000 | $ 700,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Dividend yield | 0% | |||
Stock Options, Number of Shares | ||||
Beginning balance | 2,703,424 | |||
Exercised | (534,842) | |||
Forfeited | (12,684) | |||
Expired | 0 | |||
Ending balance | 2,155,898 | 2,155,898 | ||
Exercisable | 1,998,054 | 1,998,054 | ||
Stock Options, Weighted Average Exercise Price | ||||
Beginning balance | $ 16.28 | |||
Exercised | 12.45 | |||
Forfeited | 20.97 | |||
Expired | 0 | |||
Ending balance | $ 17.20 | 17.20 | ||
Exercisable | $ 16.91 | $ 16.91 | ||
SARS and Options, Additional Disclosures | ||||
Options, aggregate intrinsic value, outstanding | $ 3,200,000 | $ 3,200,000 | ||
Options, aggregate intrinsic value, exercisable | $ 3,200,000 | $ 3,200,000 | ||
Options, weighted average remaining contractual term, outstanding | 2 years 8 months 12 days | |||
Options, weighted average remaining contractual term, exercisable | 2 years 6 months | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 months 18 days | |||
Minimum [Member] | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Risk-free interest rate | 0.85% | |||
Expected life (years) | 4 years 6 months | |||
Volatility | 34.30% | |||
Fair value at date of grant | $ 6.29 |
Equity Incentive Program - RSUs
Equity Incentive Program - RSUs (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
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 | 1,880,521 |
Granted | shares | 1,251,627 |
Vested (1) | shares | (813,275) |
Forfeited | shares | (82,174) |
Ending balance | shares | 2,236,699 |
Weighted Average Grant Date Fair Value | |
Beginning balance | $ / shares | $ 19.96 |
Granted | $ / shares | 18.81 |
Vested (1) | $ / shares | 19.60 |
Forfeited | $ / shares | 20.19 |
Ending balance | $ / shares | $ 19.44 |
Equity Incentive Program Equity
Equity Incentive Program Equity Incentive Program - PSUs (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) $ / shares shares | |
Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 14.2 |
Number of Shares [Roll Forward] | |
Beginning balance | shares | 833,589 |
Granted | shares | 320,585 |
Vested (1) | shares | (261,770) |
Forfeited | shares | (37,125) |
Ending balance | shares | 855,279 |
Weighted Average Grant Date Fair Value | |
Beginning balance | $ / shares | $ 25.12 |
Granted | $ / shares | 29.75 |
Vested (1) | $ / shares | 16.14 |
Forfeited | $ / shares | 29.20 |
Ending balance | $ / shares | $ 29.42 |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 31.1 |
Number of Shares [Roll Forward] | |
Beginning balance | shares | 1,880,521 |
Granted | shares | 1,251,627 |
Vested (1) | shares | (813,275) |
Forfeited | shares | (82,174) |
Ending balance | shares | 2,236,699 |
Weighted Average Grant Date Fair Value | |
Beginning balance | $ / shares | $ 19.96 |
Granted | $ / shares | 18.81 |
Vested (1) | $ / shares | 19.60 |
Forfeited | $ / shares | 20.19 |
Ending balance | $ / shares | $ 19.44 |
Equity Incentive Program - Addi
Equity Incentive Program - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Payment Arrangement, Expense | $ 7,100,000 | $ 7,200,000 | $ 14,900,000 | $ 14,800,000 |
Share-based Payment Arrangement, Expense, Tax Benefit | 300,000 | $ 800,000 | 3,200,000 | $ 4,000,000 |
SSARs | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 0 | 0 | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | 700,000 | $ 700,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 3 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 | 31,100,000 | $ 31,100,000 | ||
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 | $ 14,200,000 | $ 14,200,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 8 months 12 days | |||
Minimum [Member] | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage increase of initial grant value | 0% | |||
Maximum [Member] | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Percentage increase of initial grant value | 225% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reconciliation of information used in computing basic and diluted earnings per share [Abstract] | ||||
Net earnings (loss) | $ 13.6 | $ (242.9) | $ 8.4 | $ (224.8) |
Basic: | ||||
Net earnings (loss) per share, basic | $ 0.15 | $ (2.64) | $ 0.09 | $ (2.44) |
Weighted average shares outstanding | 91,400,000 | 92,000,000 | 91,400,000 | 92,200,000 |
Diluted: | ||||
Net earnings (loss) per share, diluted | $ 0.15 | $ (2.64) | $ 0.09 | $ (2.44) |
Diluted (in shares) | 91,800,000 | 92,000,000 | 92,100,000 | 92,200,000 |
Share-based Payment Arrangement | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average number of anti-dilutive shares excluded from the calculation (in shares) | 3,300,000 | 3,000,000 | 2,400,000 | 2,000,000 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segments | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information | |||||
Billed Contracts Receivable | $ 107.3 | $ 107.3 | $ 125.7 | ||
Number of reportable segments | segments | 3 | ||||
Assets | 1,176 | $ 1,176 | 1,183.9 | ||
Revenues | 173 | $ 188 | 317.3 | $ 389.4 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||||
Earnings (loss) before income taxes | 17.4 | (217.1) | 13.3 | (196.1) | |
Provision for income taxes | 3.8 | 25.8 | 4.9 | 28.7 | |
Net earnings (loss) | 13.6 | (242.9) | 8.4 | (224.8) | |
Asia | |||||
Segment Reporting Information | |||||
Revenues | 108.9 | 113 | 188.9 | 241.9 | |
United States | |||||
Segment Reporting Information | |||||
Revenues | 34 | 44.7 | 69.3 | 85.6 | |
Europe | |||||
Segment Reporting Information | |||||
Revenues | 25.7 | 27.6 | 49.8 | 55.7 | |
Other Americas | |||||
Segment Reporting Information | |||||
Revenues | 1.3 | 1.1 | 3.4 | 2.6 | |
Other Geographical Locations | |||||
Segment Reporting Information | |||||
Revenues | 3.1 | 1.6 | 5.9 | 3.6 | |
Operating Segments | |||||
Reconciliation of Net Earnings from Segments [Abstract] | |||||
Earnings (loss) before interest and income taxes | 34.7 | (205.2) | 48.6 | (170.7) | |
Operating Segments | Precision Devices | |||||
Segment Reporting Information | |||||
Assets | 290.1 | 290.1 | 275.7 | ||
Revenues | 47.8 | 59.5 | 101.5 | 115.2 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||||
Earnings (loss) before interest and income taxes | 4.8 | 11 | 15.5 | 23.3 | |
Operating Segments | MedTech & Specialty Audio | |||||
Segment Reporting Information | |||||
Assets | 339.9 | 339.9 | 358.1 | ||
Revenues | 60.6 | 61.6 | 106.1 | 121.1 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||||
Earnings (loss) before interest and income taxes | 23.6 | 23.1 | 35 | 44.8 | |
Operating Segments | Consumer MEMS Microphones | |||||
Segment Reporting Information | |||||
Assets | 542.7 | 542.7 | 547.3 | ||
Revenues | 64.6 | 66.9 | 109.7 | 153.1 | |
Reconciliation of Net Earnings from Segments [Abstract] | |||||
Earnings (loss) before interest and income taxes | 6.3 | (239.3) | (1.9) | (238.8) | |
Corporate, Non-Segment [Member] | |||||
Segment Reporting Information | |||||
Assets | 3.3 | 3.3 | $ 2.8 | ||
Reconciliation of Net Earnings from Segments [Abstract] | |||||
Corporate expense / other | 16.5 | 11.1 | 33.7 | 23.8 | |
Interest expense, net | $ 0.8 | $ 0.8 | $ 1.6 | $ 1.6 |
Uncategorized Items - kn-202306
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations | $ 48,200,000 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations | $ 68,900,000 |