Cover Page
Cover Page | 3 Months Ended |
Mar. 31, 2022shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2022 |
Document Transition Report | false |
Entity File Number | 001-38265 |
Entity Registrant Name | nVent Electric plc |
Entity Incorporation, State or Country Code | L2 |
Entity Tax Identification Number | 98-1391970 |
Entity Address, Address Line One | The Mille, 1000 Great West Road, 8th Floor (East) |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | TW8 9DW |
Entity Address, Country | GB |
Country Region | 44 |
City Area Code | 20 |
Local Phone Number | 3966-0279 |
Title of 12(b) Security | Ordinary Shares, nominal value $0.01 per share |
Trading Symbol | NVT |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 166,346,978 |
Entity Central Index Key | 0001720635 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Condensed Consolidated and Comb
Condensed Consolidated and Combined Statements of Income and Comprehensive Income (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 694.7 | $ 548.9 |
Cost of goods sold | 447.4 | 339.9 |
Gross profit | 247.3 | 209 |
Selling, general and administrative | 142 | 117.2 |
Research and development | 15.2 | 11.4 |
Operating income | 90.1 | 80.4 |
Net interest expense | 7.2 | 8.1 |
Other expense | 0.6 | 0.6 |
Income before income taxes | 82.3 | 71.7 |
Provision for income taxes | 14.5 | 6.3 |
Net income | 67.8 | 65.4 |
Comprehensive income, net of tax | ||
Net income | 67.8 | 65.4 |
Changes in cumulative translation adjustment | 3 | 3 |
Changes in market value of derivative financial instruments, net of tax | (3.7) | 19.3 |
Comprehensive income | $ 67.1 | $ 87.7 |
Earnings per ordinary share | ||
Basic pro forma earnings per ordinary share (in dollars per share) | $ 0.41 | $ 0.39 |
Diluted pro forma earnings per ordinary share (in dollars per share) | $ 0.40 | $ 0.39 |
Weighted average ordinary shares outstanding | ||
Basic (shares) | 166.2 | 167.7 |
Diluted (shares) | 168.2 | 168.8 |
Cash dividends paid per ordinary share (in usd per share) | $ 0.175 | $ 0.175 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 51.1 | $ 49.5 |
Accounts and notes receivable, net of allowances of $7.9 and $6.7, respectively | 441.7 | 438.1 |
Inventories | 348.3 | 321.9 |
Other current assets | 123.8 | 102 |
Total current assets | 964.9 | 911.5 |
Property, plant and equipment, net | 287.5 | 291.1 |
Other assets | ||
Goodwill | 2,185.2 | 2,186.7 |
Intangibles, net | 1,125.8 | 1,143.8 |
Other non-current assets | 140.2 | 141.1 |
Total other assets | 3,451.2 | 3,471.6 |
Total assets | 4,703.6 | 4,674.2 |
Current liabilities | ||
Current maturities of long-term debt and short-term borrowings | 5 | 5 |
Accounts payable | 263.7 | 261 |
Employee compensation and benefits | 84.7 | 113.9 |
Other current liabilities | 234.9 | 256.4 |
Total current liabilities | 588.3 | 636.3 |
Other liabilities | ||
Long-term debt | 1,040.8 | 994.2 |
Pension and other post-retirement compensation and benefits | 204.1 | 208.1 |
Deferred tax liabilities | 210 | 210.3 |
Other non-current liabilities | 126.5 | 129.2 |
Total liabilities | 2,169.7 | 2,178.1 |
Equity | ||
Ordinary shares $0.01 par value, 400.0 authorized, 166.3 and 166.1 issued at March 31, 2022 and December 31, 2021, respectively | 1.7 | 1.7 |
Additional paid-in capital | 2,402.8 | 2,403.1 |
Retained earnings | 213.3 | 174.5 |
Accumulated other comprehensive loss | (83.9) | (83.2) |
Total equity | 2,533.9 | 2,496.1 |
Total liabilities and equity | $ 4,703.6 | $ 4,674.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowances | $ 7.9 | $ 6.7 |
Ordinary shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Ordinary shares authorized (in shares) | 400,000,000 | 400,000,000 |
Ordinary shares issued (in shares) | 166,300,000 | 166,100,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 67.8 | $ 65.4 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities | ||
Depreciation | 10.7 | 9.7 |
Amortization | 17.8 | 15.9 |
Deferred income taxes | (0.1) | (1.5) |
Share-based compensation | 6.6 | (0.2) |
Changes in assets and liabilities, net of effects of business acquisitions | ||
Accounts and notes receivable | (5.5) | (42.2) |
Inventories | (29.1) | (6.2) |
Other current assets | (22.7) | (12.6) |
Accounts payable | 6.3 | 10.1 |
Employee compensation and benefits | (28.4) | 7.1 |
Other current liabilities | (16.9) | 2.5 |
Other non-current assets and liabilities | 0 | 1.9 |
Net cash provided by (used for) operating activities | 6.5 | 49.9 |
Investing activities | ||
Capital expenditures | (11.1) | (9.9) |
Proceeds from sale of property and equipment | 1.9 | 0.1 |
Acquisitions, net of cash acquired | 0 | (3.9) |
Net cash provided by (used for) investing activities | (9.2) | (13.7) |
Financing activities | ||
Net receipts of revolving long-term debt | 47.8 | 0 |
Repayments of long-term debt | (1.4) | (5) |
Dividends paid | (29) | (29.4) |
Shares issued to employees, net of shares withheld | (3) | 2 |
Repurchases of ordinary shares | (8.5) | (20) |
Net cash provided by (used for) financing activities | 5.9 | (52.4) |
Effect of exchange rate changes on cash and cash equivalents | (1.6) | (1.4) |
Change in cash and cash equivalents | 1.6 | (17.6) |
Cash and cash equivalents, beginning of period | 49.5 | 122.5 |
Cash and cash equivalents, end of period | $ 51.1 | $ 104.9 |
Condensed Consolidated and Co_2
Condensed Consolidated and Combined Statements of Changes in Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Beginning balance (in shares) at Dec. 31, 2020 | 168.2 | ||||
Beginning balance at Dec. 31, 2020 | $ 2,409.8 | $ 1.7 | $ 2,482.6 | $ 20.7 | $ (95.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 65.4 | 65.4 | |||
Other Comprehensive Income (Loss), Net of Tax | 22.3 | 22.3 | |||
Dividends, Common Stock | $ (29.4) | (29.4) | |||
Share repurchases (in shares) | (0.9) | (0.9) | |||
Share repurchases | $ (20) | (20) | |||
Exercise of options, net of shares tendered for payment (in shares) | 0.2 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 4.1 | 4.1 | |||
Issuance of restricted shares, net of cancellations | 0 | 0.3 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ (2) | $ (0.1) | (2) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | (0.2) | (0.2) | |||
Ending balance (in shares) at Mar. 31, 2021 | 167.7 | ||||
Ending balance at Mar. 31, 2021 | 2,450 | $ 1.7 | 2,464.5 | 56.7 | (72.9) |
Beginning balance (in shares) at Dec. 31, 2021 | 166.1 | ||||
Beginning balance at Dec. 31, 2021 | 2,496.1 | $ 1.7 | 2,403.1 | 174.5 | (83.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 67.8 | 67.8 | |||
Other Comprehensive Income (Loss), Net of Tax | (0.7) | (0.7) | |||
Dividends, Common Stock | $ (29) | (29) | |||
Share repurchases (in shares) | (0.1) | (0.1) | |||
Share repurchases | $ (3.9) | $ 0 | (3.9) | ||
Exercise of options, net of shares tendered for payment (in shares) | 0 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 1.4 | 1.4 | |||
Issuance of restricted shares, net of cancellations | 0 | 0.4 | |||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | $ (4.4) | $ (0.1) | (4.4) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 6.6 | 6.6 | |||
Ending balance (in shares) at Mar. 31, 2022 | 166.3 | ||||
Ending balance at Mar. 31, 2022 | $ 2,533.9 | $ 1.7 | $ 2,402.8 | $ 213.3 | $ (83.9) |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information In millions March 31, December 31, Inventories Raw materials and supplies $ 119.9 $ 104.5 Work-in-process 38.7 33.3 Finished goods 189.7 184.1 Total inventories $ 348.3 $ 321.9 Other current assets Contract assets $ 53.5 $ 48.9 Prepaid expenses 61.6 49.6 Prepaid income taxes 5.1 2.2 Other current assets 3.6 1.3 Total other current assets $ 123.8 $ 102.0 Property, plant and equipment, net Land and land improvements $ 38.9 $ 39.8 Buildings and leasehold improvements 181.9 184.5 Machinery and equipment 493.2 488.5 Construction in progress 25.1 25.5 Total property, plant and equipment 739.1 738.3 Accumulated depreciation and amortization 451.6 447.2 Total property, plant and equipment, net $ 287.5 $ 291.1 Other non-current assets Deferred compensation plan assets $ 19.0 $ 21.4 Lease right-of-use assets 79.1 79.1 Deferred tax assets 14.3 14.6 Other non-current assets 27.8 26.0 Total other non-current assets $ 140.2 $ 141.1 Other current liabilities Dividends payable $ 30.0 $ 30.5 Accrued rebates 57.6 88.2 Contract liabilities 18.6 17.8 Accrued taxes payable 30.7 32.4 Current lease liabilities 17.4 17.4 Other current liabilities 80.6 70.1 Total other current liabilities $ 234.9 $ 256.4 Other non-current liabilities Income taxes payable $ 30.2 $ 30.3 Deferred compensation plan liabilities 19.0 21.4 Non-current lease liabilities 66.8 66.5 Other non-current liabilities 10.5 11.0 Total other non-current liabilities $ 126.5 $ 129.2 |
Basis of Presentation and Respo
Basis of Presentation and Responsibility for Interim Financial Statements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Responsibility for Interim Financial Statements | Basis of Presentation and Responsibility for Interim Financial Statements Business nVent Electric plc ("nVent," "we," "us," "our" or the "Company") is a leading global provider of electrical connection and protection solutions. The Company is comprised of three reporting segments: Enclosures, Electrical & Fastening Solutions and Thermal Management. The Company was incorporated in Ireland on May 30, 2017. Although our jurisdiction of organization is Ireland, we manage our affairs so that we are centrally managed and controlled in the United Kingdom (the "U.K.") and have tax residency in the U.K. Basis of presentation The accompanying unaudited condensed consolidated financial statements of nVent have been prepared following the requirements of the Securities and Exchange Commission ("SEC") for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by accounting principles generally accepted in the United States of America ("GAAP") can be condensed or omitted. We are responsible for the unaudited condensed consolidated financial statements included in this document. The financial statements include all normal recurring adjustments that are considered necessary for the fair presentation of our financial position and operating results. As these are condensed financial statements, one should also read our consolidated financial statements and notes thereto, which are included in our Annual Report on Form 10-K Revenues, expenses, cash flows, assets and liabilities can and do vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be indicative of those for a full year. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of revenue We disaggregate our revenue from contracts with customers by geographic location and vertical for each of our segments, as we believe these best depict how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographic net sales information, based on geographic destination of the sale, was as follows: Three months ended March 31, 2022 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total U.S. and Canada $ 236.6 $ 137.9 $ 87.2 $ 461.7 Developed Europe (1) 81.3 34.7 33.0 149.0 Developing (2) 36.9 10.9 22.4 70.2 Other Developed (3) 4.6 4.1 5.1 13.8 Total $ 359.4 $ 187.6 $ 147.7 $ 694.7 Three months ended March 31, 2021 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total U.S. and Canada $ 175.7 $ 103.9 $ 63.8 $ 343.4 Developed Europe (1) 73.4 30.8 30.5 134.7 Developing (2) 24.4 9.0 27.0 60.4 Other Developed (3) 3.5 4.2 2.7 10.4 Total $ 277.0 $ 147.9 $ 124.0 $ 548.9 (1) Developed Europe includes Western Europe and Eastern Europe included in European Union. (2) Developing includes China, Eastern Europe not included in European Union, Latin America, Middle East and Southeast Asia. (3) Other Developed includes Australia and Japan. Vertical net sales information was as follows: Three months ended March 31, 2022 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total Industrial $ 209.4 $ 19.2 $ 72.6 $ 301.2 Commercial & Residential 40.3 95.8 46.6 182.7 Infrastructure 80.3 65.1 5.0 150.4 Energy 29.4 7.5 23.5 60.4 Total $ 359.4 $ 187.6 $ 147.7 $ 694.7 Three months ended March 31, 2021 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total Industrial $ 172.1 $ 15.4 $ 50.6 $ 238.1 Commercial & Residential 28.6 77.6 46.0 152.2 Infrastructure 55.6 48.9 4.3 108.8 Energy 20.7 6.0 23.1 49.8 Total $ 277.0 $ 147.9 $ 124.0 $ 548.9 Contract balances Contract assets and liabilities consisted of the following: In millions March 31, 2022 December 31, 2021 $ Change % Change Contract assets $ 53.5 $ 48.9 $ 4.6 9.4 % Contract liabilities 18.6 17.8 0.8 4.5 % Net contract assets $ 34.9 $ 31.1 $ 3.8 12.2 % The $3.8 million increase in net contract assets from December 31, 2021 to March 31, 2022 wa s primarily the result of timing of milestone payments. The majority of our contract liabilities at December 31, 2021 were recognized in revenue during the three months ended March 31, 2022. There were no material impairment losses recognized on our contract assets for the three months ended March 31, 2022 and 2021. Remaining performance obligations We have elected the practical expedient to disclose only the value of remaining performance obligations for contracts with an original expected length of one year or more. On March 31, 2022, we had $33.1 million of remaining performance obligations on contracts with an original expected duration of one year or more. We expect to recognize the majority of our remaining performance obligations on these contracts within the next 12 to 18 months. |
Restructuring
Restructuring | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the three months ended March 31, 2022 and the year ended December 31, 2021, we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. Restructuring related costs included in Selling, general and administrative expense in the Condensed Consolidated Statements of Income and Comprehensive Income included costs for severance and other restructuring costs as follows: Three months ended In millions March 31, March 31, Severance and related costs $ 2.0 $ 0.2 Other — 0.6 Total restructuring costs $ 2.0 $ 0.8 Other restructuring costs primarily consist of asset impairment and various contract termination costs. Restructuring costs by reportable segment were as follows: Three months ended In millions March 31, March 31, Enclosures $ 0.2 $ 1.0 Electrical & Fastening Solutions — 0.2 Thermal Management — 0.2 Other 1.8 (0.6) Total $ 2.0 $ 0.8 Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows: Three months ended In millions March 31, March 31, Beginning balance $ 2.4 $ 6.6 Costs incurred 2.0 0.2 Cash payments and other (2.2) (3.2) Ending balance $ 2.2 $ 3.6 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic and diluted earnings per share were calculated as follows: Three months ended In millions, except per-share data March 31, March 31, Net income $ 67.8 $ 65.4 Weighted average ordinary shares outstanding Basic 166.2 167.7 Dilutive impact of stock options, restricted stock units and performance share units 2.0 1.1 Diluted 168.2 168.8 Earnings per ordinary share Basic earnings per ordinary share $ 0.41 $ 0.39 Diluted earnings per ordinary share $ 0.40 $ 0.39 Anti-dilutive stock options excluded from the calculation of diluted earnings per share 0.2 2.0 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 1, 2021, we acquired substantially all of the assets of Vynckier Enclosure Systems, Inc. ("Vynckier") for approximately $27.0 million in cash. Vynckier is a U.S. based manufacturer of high-quality non-metallic enclosures that we market as part of the nVent HOFFMAN product line within our Enclosures segment. The excess purchase price over tangible net assets and identified intangible assets acquired has been allocated to goodwill in the amount of $13.5 million, substantially all of which is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $6.1 million of definite-lived customer relationships with an estimated useful life of 11 years. On June 30, 2021, we acquired CIS Global LLC ("CIS Global") for approximately $202.4 million in cash. The CIS Global business is a leading provider of intelligent rack power distribution and server slides products, and operates within our Enclosures segment. The purchase price was funded primarily through borrowings under our Revolving Credit Facility (as defined in Note 9). The excess purchase price over tangible net assets and identified intangible assets acquired has been preliminarily allocated to goodwill in the amount of $83.3 million, of which $30.9 million is expected to be deductible for income tax purposes. Identifiable intangible assets acquired included $78.0 million of definite-lived customer relationships with an estimated useful life of 16 years and $24.5 million of developed technology with an estimated useful life of 9 years to 12 years. The preliminary purchase price allocation is subject to further refinement and may require significant adjustments to arrive at the final purchase price allocation, primarily related to the impacts associated with income taxes and certain working capital accounts. The pro forma impact of these acquisitions is not material individually or in the aggregate. |
Goodwill and Other Identifiable
Goodwill and Other Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Identifiable Intangible Assets | Goodwill and Other Identifiable Intangible Assets The changes in the carrying amount of goodwill by reportable segment were as follows: In millions December 31, Acquisitions/ Foreign currency March 31, Enclosures $ 420.4 $ — $ (2.5) $ 417.9 Electrical & Fastening Solutions 1,052.0 — — 1,052.0 Thermal Management 714.3 — 1.0 715.3 Total goodwill $ 2,186.7 $ — $ (1.5) $ 2,185.2 Identifiable intangible assets consisted of the following: March 31, 2022 December 31, 2021 In millions Cost Accumulated amortization Net Cost Accumulated Net Definite-life intangibles Customer relationships $ 1,295.4 $ (471.1) $ 824.3 $ 1,295.4 $ (454.0) $ 841.4 Proprietary technology and patents 40.8 (12.4) 28.4 40.8 (11.5) 29.3 Total definite-life intangibles 1,336.2 (483.5) 852.7 1,336.2 (465.5) 870.7 Indefinite-life intangibles Trade names 273.1 — 273.1 273.1 — 273.1 Total intangibles $ 1,609.3 $ (483.5) $ 1,125.8 $ 1,609.3 $ (465.5) $ 1,143.8 Identifiable intangible asset amortization expense was $17.8 million and $15.9 million for the three months ended March 31, 2022 and 2021, respectively. Estimated future amortization expense for identifiable intangible assets during the remainder of 2022 and the next five years is as follows: Q2-Q4 In millions 2022 2023 2024 2025 2026 2027 Estimated amortization expense $ 53.3 $ 70.9 $ 70.2 $ 70.2 $ 70.2 $ 70.2 |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Financial Instruments | Derivatives and Financial Instruments Derivative financial instruments We are exposed to market risk related to changes in foreign currency exchange rates. To manage the volatility related to this exposure, we periodically enter into a variety of derivative financial instruments. Our objective is to reduce, where it is deemed appropriate to do so, fluctuations in earnings and cash flows associated with changes in foreign currency exchange rates. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality. Foreign currency contracts We conduct business in various locations throughout the world and are subject to market risk due to changes in the value of foreign currencies. We manage our economic and transaction exposure to certain market-based risks through the use of derivative instruments. These derivative instruments primarily consist of forward foreign currency contracts used to mitigate foreign currency exposure for certain foreign currency assets and liabilities. Our objective in holding these derivatives is to reduce the volatility in net earnings and cash flows associated with changes in foreign currency rates. The majority of our foreign currency contracts have an original maturity date of less than one year. These foreign currency contracts are not designated as hedging instruments; accordingly, changes in the fair value are recorded in current period earnings. At March 31, 2022 and December 31, 2021, we had outstanding foreign currency derivative contracts with gross notional U.S. dollar equivalent amounts of $163.4 million and $180.1 million, respectively. The impact of these contracts on the Condensed Consolidated Statements of Income and Comprehensive Income was not material for any period presented. Cross currency swaps At March 31, 2022 and December 31, 2021, we had outstanding cross currency swap agreements with a combined notional amount of $360.6 million and $369.1 million, respectively. The agreements are accounted for as either cash flow hedges, to hedge foreign currency fluctuations on certain intercompany debt, or as net investment hedges, to manage our exposure to fluctuations in the Euro-U.S. Dollar exchange rate. At March 31, 2022 and December 31, 2021, we had deferred foreign currency gains of $12.9 million and $16.7 million, respectively, in Accumulated other comprehensive loss associated with our cross currency swap activity. Interest rate swaps We are also exposed to interest rate risk fluctuations in connection with the planned issuance of long-term debt. To manage the volatility related to this exposure, we may use forward starting interest rate swaps to fix a portion of the interest cost associated with anticipated future financings. In 2020, we entered into a forward starting interest rate swap to hedge the variability of cash flows attributable to changes in the benchmark swap interest rate (London Inter-Bank Offer Rate) associated with the anticipated refinancing of the 2023 Notes (as defined below). The interest rate swap contract had a notional amount of $200.0 million, and was settled in the fourth quarter of 2021 in conjunction with the issuance of the 2031 Notes (as defined below). Accordingly, cash flows of $9.6 million relating to the settlement of interest rate swaps hedging the forecasted issuance of debt have been reflected as a component of financing cash flows. The resulting gain from the settlement is deferred to Accumulated other comprehensive loss, and is being reclassified to interest expense over the term of the 2031 Notes (underlying debt). This reclassification of the deferred gain impacts the interest expense recognized on the underlying debt that was hedged, and is therefore reflected as a component of operating cash flows in periods subsequent to settlement. Fair value of financial instruments The following methods were used to estimate the fair values of each class of financial instruments: • short-term financial instruments (cash and cash equivalents, accounts and notes receivable, accounts and notes payable and variable-rate debt) — recorded amount approximates fair value because of the short maturity period; • long-term fixed-rate debt, including current maturities — fair value is based on market quotes available for issuance of debt with similar terms, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; • foreign currency contract and interest rate swap agreements — fair values are determined through the use of models that consider various assumptions, including time value, yield curves, as well as other relevant economic measures, which are inputs that are classified as Level 2 in the valuation hierarchy defined by the accounting guidance; and • deferred compensation plan assets (mutual funds, common/collective trusts and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees) — fair value of mutual funds and cash equivalents are based on quoted market prices in active markets that are classified as Level 1 in the valuation hierarchy defined by the accounting guidance; fair value of common/collective trusts are valued at net asset value ("NAV"), which is based on the fair value of underlying securities owned by the fund divided by the number of shares outstanding. The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows: March 31, December 31, In millions Recorded Fair Recorded Fair Variable rate debt $ 252.0 $ 252.0 $ 205.5 $ 205.5 Fixed rate debt 800.0 1,045.4 800.0 866.8 Total debt $ 1,052.0 $ 1,297.4 $ 1,005.5 $ 1,072.3 Financial assets and liabilities measured at fair value on a recurring basis were as follows: Recurring fair value measurements March 31, 2022 In millions Level 1 Level 2 Level 3 NAV Total Cross currency swap liabilities $ — $ (0.6) $ — $ — $ (0.6) Cross currency swap assets — 11.7 — — 11.7 Foreign currency contract liabilities — (1.7) — — (1.7) Foreign currency contract assets — 1.5 — — 1.5 Deferred compensation plan assets 13.9 — — 5.1 19.0 Total recurring fair value measurements $ 13.9 $ 10.9 $ — $ 5.1 $ 29.9 Recurring fair value measurements December 31, 2021 In millions Level 1 Level 2 Level 3 NAV Total Cross currency swap liabilities $ — $ (1.7) $ — $ — $ (1.7) Cross currency swap assets — 9.5 — — 9.5 Foreign currency contract liabilities — (0.2) — — (0.2) Foreign currency contract assets — 0.4 — — 0.4 Deferred compensation plan assets 15.5 — — 5.9 21.4 Total recurring fair value measurements $ 15.5 $ 8.0 $ — $ 5.9 $ 29.4 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt and the average interest rates on debt outstanding were as follows: In millions Average interest rate at March 31, 2022 Maturity March 31, December 31, Revolving credit facility 1.552% 2026 $ 154.5 $ 106.7 Senior notes - fixed rate 2.750% 2031 300.0 300.0 Senior notes - fixed rate 4.550% 2028 500.0 500.0 Term loan facility 1.697% 2026 97.5 98.8 Unamortized debt issuance costs and discounts N/A N/A (6.2) (6.3) Total debt 1,045.8 999.2 Less: Current maturities and short-term borrowings (5.0) (5.0) Long-term debt $ 1,040.8 $ 994.2 Senior notes In March 2018, nVent Finance S.à r.l. (“nVent Finance” or "Subsidiary Issuer"), a 100-percent owned subsidiary of nVent, issued $300.0 million aggregate principal amount of 3.950% senior notes due 2023 (the "2023 Notes") and $500.0 million aggregate principal amount of 4.550% senior notes due 2028 (the "2028 Notes"). In November 2021, nVent Finance issued $300.0 million aggregate principal amount of 2.750% senior notes due 2031 (the "2031 Notes" and, collectively with the 2028 Notes, the "Notes"). In December 2021, the Company redeemed the $300.0 million aggregate principal amount of the 2023 Notes. Interest on the 2028 Notes is payable semi-annually in arrears on April 15 and October 15 of each year, and interest on the 2031 Notes is payable semi-annually in arrears on May 15 and November 15 of each year. The Notes are fully and unconditionally guaranteed as to payment by nVent (the "Parent Company Guarantor"). There are no subsidiaries that guarantee the Notes. The Parent Company Guarantor is a holding company that has no independent assets or operations unrelated to its investments in consolidated subsidiaries. The Subsidiary Issuer is a holding company that has no independent assets or operations unrelated to its investments in consolidated subsidiaries and the issuance of the Notes and other external debt. The Parent Company Guarantor’s principal source of cash flow, including cash flow to make payments on the Notes pursuant to the guarantees, is dividends from its subsidiaries. The Subsidiary Issuer’s principal source of cash flow is interest income from its subsidiaries. None of the subsidiaries of the Parent Company Guarantor or the Subsidiary Issuer is under any direct obligation to pay or otherwise fund amounts due on the Notes or the guarantees, whether in the form of dividends, distributions, loans or other payments. In addition, there may be statutory and regulatory limitations on the payment of dividends from certain subsidiaries of the Parent Company Guarantor or the Subsidiary Issuer. If such subsidiaries are unable to transfer funds to the Parent Company Guarantor or the Subsidiary Issuer and sufficient cash or liquidity is not otherwise available, the Parent Company Guarantor or the Subsidiary Issuer may not be able to make principal and interest payments on their outstanding debt, including the Notes or the guarantees. The Notes constitute general unsecured senior obligations of the Subsidiary Issuer and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. The guarantees of the Notes by the Parent Company Guarantor constitute general unsecured obligations of the Parent Company Guarantor and rank equally in right of payment with all existing and future unsubordinated and unsecured indebtedness and liabilities of the Subsidiary Issuer. Subject to certain qualifications and exceptions, the indenture pursuant to which the Notes were issued contains covenants that, among other things, restrict nVent’s, nVent Finance’s and certain subsidiaries’ ability to merge or consolidate with another person, create liens or engage in sale and lease-back transactions. There are no significant restrictions on the ability of nVent to obtain funds from its subsidiaries by dividend or loan. None of the assets of nVent or its subsidiaries represents restricted net assets pursuant to the guidelines established by the Securities and Exchange Commission. Senior credit facilities In March 2018, the Company and its subsidiaries nVent Finance and Hoffman Schroff Holdings, Inc. entered into a credit agreement with a syndicate of banks providing for a five-year $200.0 million senior unsecured term loan facility and a five-year $600.0 million senior unsecured revolving credit facility. In September 2021, the Company and its subsidiaries nVent Finance and Hoffman Schroff Holdings, Inc. entered into an amended and restated credit agreement (the "Credit Agreement") with a syndicate of banks providing for a five-year $300.0 million senior unsecured term loan facility (the "Term Loan Facility") and a five-year $600.0 million senior unsecured revolving credit facility (the "Revolving Credit Facility" and, together with the Term Loan Facility, the "Senior Credit Facilities"), which amended and restated the March 2018 credit agreement. Borrowings under the Term Loan Facility are permitted on a delayed draw basis during the first year of the five-year term of the Term Loan Facility, and borrowings under the Revolving Credit Facility are permitted from time to time during the full five-year term of the Revolving Credit Facility. nVent Finance has the option to request to increase the Revolving Credit Facility in an aggregate amount of up to $300.0 million, subject to customary conditions, including the commitment of the participating lenders. Borrowings under the Senior Credit Facilities bear interest at a rate equal to an adjusted base rate, London Interbank Offered Rate (“LIBOR”), Euro Interbank Offer Rate (“EURIBOR”) or Sterling Overnight Index Average (“SONIA”), plus, in each case, an applicable margin. The applicable margin will be based on, at nVent Finance’s election, the Company's leverage level or public credit rating. As of March 31, 2022, the borrowing capacity under the Term Loan Facility on a delayed draw basis was $200.0 million, and the borrowing capacity under the Revolving Credit Facility was $445.5 million. Our debt agreements contain certain financial covenants, the most restrictive of which are in the Senior Credit Facilities, including that we may not permit (i) the ratio of our consolidated debt (net of our consolidated unrestricted cash in excess of $5.0 million but not to exceed $250.0 million) to our consolidated net income (excluding, among other things, non-cash gains and losses) before interest, taxes, depreciation, amortization and non-cash share-based compensation expense ("EBITDA") on the last day of any period of four consecutive fiscal quarters (each a "testing period") to exceed 3.75 to 1.00 (or, at nVent Finance's election and subject to certain conditions, 4.25 to 1.00 for four testing periods in connection with certain material acquisitions) and (ii) the ratio of our EBITDA to our consolidated interest expense for the same period to be less than 3.00 to 1.00. In addition, subject to certain qualifications and exceptions, the Senior Credit Facilities also contain covenants that, among other things, restrict our ability to create liens, merge or consolidate with another person, make acquisitions and incur subsidiary debt. As of March 31, 2022, we were in compliance with all financial covenants in our debt agreements, and there is no material uncertainty about our ongoing ability to meet those covenants. Debt outstanding, excluding unamortized issuance costs and discounts, at March 31, 2022 matures on a calendar year basis as follows: Q2-Q4 In millions 2022 2023 2024 2025 2026 2027 Thereafter Total Contractual debt obligation maturities $ 3.8 $ 5.0 $ 5.6 $ 7.5 $ 230.1 $ — $ 800.0 $ 1,052.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective income tax rate for the three months ended March 31, 2022 was 17.6%, compared to 8.8% for the three months ended March 31, 2021. The liability for uncertain tax positions was $15.5 million and $15.6 million at March 31, 2022 and December 31, 2021, respectively. We record penalties and interest related to unrecognized tax benefits in Provision for income taxes and Net interest expense , respectively, on the Condensed Consolidated Statements of Income and Comprehensive Income, which is consistent with our past practices. In the three months ended March 31, 2021, we recorded a $5.2 million discrete tax benefit related to a foreign subsidiary. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity Share repurchases On July 23, 2018, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $500.0 million (the "2018 Authorization"). On February 19, 2019, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $380.0 million (the "2019 Authorization"). The 2018 Authorization and 2019 Authorization expired on July 23, 2021. On May 14, 2021, the Board of Directors authorized the repurchase of our ordinary shares up to a maximum dollar limit of $300.0 million (the "2021 Authorization"). The 2021 Authorization began on July 23, 2021 upon expiration of the 2018 Authorization and the 2019 Authorization, and expires on July 22, 2024. During the three months ended March 31, 2022, we repurchased 0.1 million of our ordinary shares for $3.9 million under the 2021 Authorization. During the three months ended March 31, 2021, we repurchased 0.9 million of our ordinary shares for $20.0 million under the 2018 Authorization. As of March 31, 2022 and December 31, 2021, outstanding share repurchases recorded in Other current liabilities were zero and $4.6 million, respectively. As of March 31, 2022, we have $200.0 million available for share repurchases under the 2021 Authorization. Dividends payable On February 21, 2022, the Board of Directors declared a quarterly cash dividend of $0.175 per ordinary share payable on May 6, 2022, to shareholders of record at the close of business on April 22, 2022. The balance of dividends payable included in Other current liabilities on our Condensed Consolidated Balance Sheets was $30.0 million and $30.5 million at March 31, 2022 and December 31, 2021, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We evaluate performance based on net sales and segment income and use a variety of ratios to measure performance of our reporting segments. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. Segment income represents operating income exclusive of intangible amortization, acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items. Financial information by reportable segment is as follows: Three months ended In millions March 31, March 31, Net sales Enclosures $ 359.4 $ 277.0 Electrical & Fastening Solutions 187.6 147.9 Thermal Management 147.7 124.0 Total $ 694.7 $ 548.9 Segment income (loss) Enclosures $ 50.3 $ 48.8 Electrical & Fastening Solutions 47.1 39.2 Thermal Management 32.4 21.0 Other (19.6) (11.9) Total $ 110.2 $ 97.1 The following table presents a reconciliation of segment income to income before income taxes: Three months ended In millions March 31, March 31, Segment income $ 110.2 $ 97.1 Intangible amortization (17.8) (15.9) Restructuring and other (2.0) (0.8) Acquisition transaction and integration costs (0.3) — Net interest expense (7.2) (8.1) Other expense (0.6) (0.6) Income before income taxes $ 82.3 $ 71.7 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Warranties and guarantees In connection with the disposition of our businesses or product lines, we may agree to indemnify purchasers for various potential liabilities relating to the sold business, such as pre-closing tax, product liability, warranty, environmental, or other obligations. The subject matter, amounts and duration of any such indemnification obligations vary for each type of liability indemnified and may vary widely from transaction to transaction. Generally, the maximum obligation under such indemnifications is not explicitly stated and as a result, the overall amount of these obligations cannot be reasonably estimated. Historically, we have not made significant payments for these indemnifications. We believe that if we were to incur a loss in any of these matters, the loss would not have a material effect on our financial position, results of operations or cash flows. We recognize, at the inception of a guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. We provide service and warranty policies on our products. Liability under service and warranty policies is based upon a review of historical warranty and service claim experience. Adjustments are made to accruals as claim data and historical experience warrant. Our liability for service and product warranties as of March 31, 2022 and December 31, 2021 was not material. Stand-by letters of credit, bank guarantees and bonds In the ordinary course of business, we are required to commit to bonds, letters of credit and bank guarantees that require payments to our customers for any non-performance. The outstanding face value of these instruments fluctuates with the value of our projects in process and in our backlog. In addition, we issue financial stand-by letters of credit primarily to secure our performance to third parties under self-insurance programs. As of March 31, 2022 and December 31, 2021, the outstanding value of bonds, letters of credit and bank guarantees totaled $41.0 million and $38.2 million, respectively. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Category | Geographic net sales information, based on geographic destination of the sale, was as follows: Three months ended March 31, 2022 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total U.S. and Canada $ 236.6 $ 137.9 $ 87.2 $ 461.7 Developed Europe (1) 81.3 34.7 33.0 149.0 Developing (2) 36.9 10.9 22.4 70.2 Other Developed (3) 4.6 4.1 5.1 13.8 Total $ 359.4 $ 187.6 $ 147.7 $ 694.7 Three months ended March 31, 2021 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total U.S. and Canada $ 175.7 $ 103.9 $ 63.8 $ 343.4 Developed Europe (1) 73.4 30.8 30.5 134.7 Developing (2) 24.4 9.0 27.0 60.4 Other Developed (3) 3.5 4.2 2.7 10.4 Total $ 277.0 $ 147.9 $ 124.0 $ 548.9 (1) Developed Europe includes Western Europe and Eastern Europe included in European Union. (2) Developing includes China, Eastern Europe not included in European Union, Latin America, Middle East and Southeast Asia. (3) Other Developed includes Australia and Japan. Vertical net sales information was as follows: Three months ended March 31, 2022 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total Industrial $ 209.4 $ 19.2 $ 72.6 $ 301.2 Commercial & Residential 40.3 95.8 46.6 182.7 Infrastructure 80.3 65.1 5.0 150.4 Energy 29.4 7.5 23.5 60.4 Total $ 359.4 $ 187.6 $ 147.7 $ 694.7 Three months ended March 31, 2021 In millions Enclosures Electrical & Fastening Solutions Thermal Management Total Industrial $ 172.1 $ 15.4 $ 50.6 $ 238.1 Commercial & Residential 28.6 77.6 46.0 152.2 Infrastructure 55.6 48.9 4.3 108.8 Energy 20.7 6.0 23.1 49.8 Total $ 277.0 $ 147.9 $ 124.0 $ 548.9 |
Contract assets and liabilities | Contract assets and liabilities consisted of the following: In millions March 31, 2022 December 31, 2021 $ Change % Change Contract assets $ 53.5 $ 48.9 $ 4.6 9.4 % Contract liabilities 18.6 17.8 0.8 4.5 % Net contract assets $ 34.9 $ 31.1 $ 3.8 12.2 % |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Related Costs | Restructuring related costs included in Selling, general and administrative expense in the Condensed Consolidated Statements of Income and Comprehensive Income included costs for severance and other restructuring costs as follows: Three months ended In millions March 31, March 31, Severance and related costs $ 2.0 $ 0.2 Other — 0.6 Total restructuring costs $ 2.0 $ 0.8 |
Restructuring Costs By Segment | Restructuring costs by reportable segment were as follows: Three months ended In millions March 31, March 31, Enclosures $ 0.2 $ 1.0 Electrical & Fastening Solutions — 0.2 Thermal Management — 0.2 Other 1.8 (0.6) Total $ 2.0 $ 0.8 |
Restructuring Accrual Activity Recorded on Consolidated Balance Sheets | Activity related to accrued severance and related costs recorded in Other current liabilities in the Condensed Consolidated Balance Sheets is summarized as follows: Three months ended In millions March 31, March 31, Beginning balance $ 2.4 $ 6.6 Costs incurred 2.0 0.2 Cash payments and other (2.2) (3.2) Ending balance $ 2.2 $ 3.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Three months ended In millions, except per-share data March 31, March 31, Net income $ 67.8 $ 65.4 Weighted average ordinary shares outstanding Basic 166.2 167.7 Dilutive impact of stock options, restricted stock units and performance share units 2.0 1.1 Diluted 168.2 168.8 Earnings per ordinary share Basic earnings per ordinary share $ 0.41 $ 0.39 Diluted earnings per ordinary share $ 0.40 $ 0.39 Anti-dilutive stock options excluded from the calculation of diluted earnings per share 0.2 2.0 |
Goodwill and Other Identifiab_2
Goodwill and Other Identifiable Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill by Segment | The changes in the carrying amount of goodwill by reportable segment were as follows: In millions December 31, Acquisitions/ Foreign currency March 31, Enclosures $ 420.4 $ — $ (2.5) $ 417.9 Electrical & Fastening Solutions 1,052.0 — — 1,052.0 Thermal Management 714.3 — 1.0 715.3 Total goodwill $ 2,186.7 $ — $ (1.5) $ 2,185.2 |
Schedule of Finite-Lived Intangible Assets | Identifiable intangible assets consisted of the following: March 31, 2022 December 31, 2021 In millions Cost Accumulated amortization Net Cost Accumulated Net Definite-life intangibles Customer relationships $ 1,295.4 $ (471.1) $ 824.3 $ 1,295.4 $ (454.0) $ 841.4 Proprietary technology and patents 40.8 (12.4) 28.4 40.8 (11.5) 29.3 Total definite-life intangibles 1,336.2 (483.5) 852.7 1,336.2 (465.5) 870.7 Indefinite-life intangibles Trade names 273.1 — 273.1 273.1 — 273.1 Total intangibles $ 1,609.3 $ (483.5) $ 1,125.8 $ 1,609.3 $ (465.5) $ 1,143.8 |
Schedule of Indefinite-Lived Intangible Assets | Identifiable intangible assets consisted of the following: March 31, 2022 December 31, 2021 In millions Cost Accumulated amortization Net Cost Accumulated Net Definite-life intangibles Customer relationships $ 1,295.4 $ (471.1) $ 824.3 $ 1,295.4 $ (454.0) $ 841.4 Proprietary technology and patents 40.8 (12.4) 28.4 40.8 (11.5) 29.3 Total definite-life intangibles 1,336.2 (483.5) 852.7 1,336.2 (465.5) 870.7 Indefinite-life intangibles Trade names 273.1 — 273.1 273.1 — 273.1 Total intangibles $ 1,609.3 $ (483.5) $ 1,125.8 $ 1,609.3 $ (465.5) $ 1,143.8 |
Estimated Future Amortization Expense for Identifiable Intangible Assets | Estimated future amortization expense for identifiable intangible assets during the remainder of 2022 and the next five years is as follows: Q2-Q4 In millions 2022 2023 2024 2025 2026 2027 Estimated amortization expense $ 53.3 $ 70.9 $ 70.2 $ 70.2 $ 70.2 $ 70.2 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disclosure Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | In millions March 31, December 31, Inventories Raw materials and supplies $ 119.9 $ 104.5 Work-in-process 38.7 33.3 Finished goods 189.7 184.1 Total inventories $ 348.3 $ 321.9 Other current assets Contract assets $ 53.5 $ 48.9 Prepaid expenses 61.6 49.6 Prepaid income taxes 5.1 2.2 Other current assets 3.6 1.3 Total other current assets $ 123.8 $ 102.0 Property, plant and equipment, net Land and land improvements $ 38.9 $ 39.8 Buildings and leasehold improvements 181.9 184.5 Machinery and equipment 493.2 488.5 Construction in progress 25.1 25.5 Total property, plant and equipment 739.1 738.3 Accumulated depreciation and amortization 451.6 447.2 Total property, plant and equipment, net $ 287.5 $ 291.1 Other non-current assets Deferred compensation plan assets $ 19.0 $ 21.4 Lease right-of-use assets 79.1 79.1 Deferred tax assets 14.3 14.6 Other non-current assets 27.8 26.0 Total other non-current assets $ 140.2 $ 141.1 Other current liabilities Dividends payable $ 30.0 $ 30.5 Accrued rebates 57.6 88.2 Contract liabilities 18.6 17.8 Accrued taxes payable 30.7 32.4 Current lease liabilities 17.4 17.4 Other current liabilities 80.6 70.1 Total other current liabilities $ 234.9 $ 256.4 Other non-current liabilities Income taxes payable $ 30.2 $ 30.3 Deferred compensation plan liabilities 19.0 21.4 Non-current lease liabilities 66.8 66.5 Other non-current liabilities 10.5 11.0 Total other non-current liabilities $ 126.5 $ 129.2 |
Derivatives and Financial Ins_2
Derivatives and Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Recorded Amounts and Estimated Fair Values of Long-term Debt and Derivative Financial Instruments | The recorded amounts and estimated fair values of total debt, excluding unamortized issuance costs and discounts, were as follows: March 31, December 31, In millions Recorded Fair Recorded Fair Variable rate debt $ 252.0 $ 252.0 $ 205.5 $ 205.5 Fixed rate debt 800.0 1,045.4 800.0 866.8 Total debt $ 1,052.0 $ 1,297.4 $ 1,005.5 $ 1,072.3 |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis were as follows: Recurring fair value measurements March 31, 2022 In millions Level 1 Level 2 Level 3 NAV Total Cross currency swap liabilities $ — $ (0.6) $ — $ — $ (0.6) Cross currency swap assets — 11.7 — — 11.7 Foreign currency contract liabilities — (1.7) — — (1.7) Foreign currency contract assets — 1.5 — — 1.5 Deferred compensation plan assets 13.9 — — 5.1 19.0 Total recurring fair value measurements $ 13.9 $ 10.9 $ — $ 5.1 $ 29.9 Recurring fair value measurements December 31, 2021 In millions Level 1 Level 2 Level 3 NAV Total Cross currency swap liabilities $ — $ (1.7) $ — $ — $ (1.7) Cross currency swap assets — 9.5 — — 9.5 Foreign currency contract liabilities — (0.2) — — (0.2) Foreign currency contract assets — 0.4 — — 0.4 Deferred compensation plan assets 15.5 — — 5.9 21.4 Total recurring fair value measurements $ 15.5 $ 8.0 $ — $ 5.9 $ 29.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Average Interest Rates on Debt Outstanding | Debt and the average interest rates on debt outstanding were as follows: In millions Average interest rate at March 31, 2022 Maturity March 31, December 31, Revolving credit facility 1.552% 2026 $ 154.5 $ 106.7 Senior notes - fixed rate 2.750% 2031 300.0 300.0 Senior notes - fixed rate 4.550% 2028 500.0 500.0 Term loan facility 1.697% 2026 97.5 98.8 Unamortized debt issuance costs and discounts N/A N/A (6.2) (6.3) Total debt 1,045.8 999.2 Less: Current maturities and short-term borrowings (5.0) (5.0) Long-term debt $ 1,040.8 $ 994.2 |
Debt Outstanding Matures on Calendar Year Basis | Debt outstanding, excluding unamortized issuance costs and discounts, at March 31, 2022 matures on a calendar year basis as follows: Q2-Q4 In millions 2022 2023 2024 2025 2026 2027 Thereafter Total Contractual debt obligation maturities $ 3.8 $ 5.0 $ 5.6 $ 7.5 $ 230.1 $ — $ 800.0 $ 1,052.0 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | Financial information by reportable segment is as follows: Three months ended In millions March 31, March 31, Net sales Enclosures $ 359.4 $ 277.0 Electrical & Fastening Solutions 187.6 147.9 Thermal Management 147.7 124.0 Total $ 694.7 $ 548.9 Segment income (loss) Enclosures $ 50.3 $ 48.8 Electrical & Fastening Solutions 47.1 39.2 Thermal Management 32.4 21.0 Other (19.6) (11.9) Total $ 110.2 $ 97.1 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a reconciliation of segment income to income before income taxes: Three months ended In millions March 31, March 31, Segment income $ 110.2 $ 97.1 Intangible amortization (17.8) (15.9) Restructuring and other (2.0) (0.8) Acquisition transaction and integration costs (0.3) — Net interest expense (7.2) (8.1) Other expense (0.6) (0.6) Income before income taxes $ 82.3 $ 71.7 |
Basis of Presentation and Res_2
Basis of Presentation and Responsibility for Interim Financial Statements - Separation from Pentair (Details) | 3 Months Ended |
Mar. 31, 2022segment | |
Accounting Policies [Abstract] | |
Number of reportable segments | 3 |
Revenue - Geographic Net Sales
Revenue - Geographic Net Sales Information by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 694.7 | $ 548.9 |
U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 461.7 | 343.4 |
Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 149 | 134.7 |
Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 70.2 | 60.4 |
Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 13.8 | 10.4 |
Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 359.4 | 277 |
Enclosures | U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 236.6 | 175.7 |
Enclosures | Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 81.3 | 73.4 |
Enclosures | Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36.9 | 24.4 |
Enclosures | Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.6 | 3.5 |
Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 187.6 | 147.9 |
Electrical & Fastening Solutions | U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 137.9 | 103.9 |
Electrical & Fastening Solutions | Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 34.7 | 30.8 |
Electrical & Fastening Solutions | Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10.9 | 9 |
Electrical & Fastening Solutions | Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.1 | 4.2 |
Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 147.7 | 124 |
Thermal Management | U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 87.2 | 63.8 |
Thermal Management | Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 33 | 30.5 |
Thermal Management | Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 22.4 | 27 |
Thermal Management | Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 5.1 | $ 2.7 |
Revenue - Vertical Sales by Seg
Revenue - Vertical Sales by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 694.7 | $ 548.9 |
Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 359.4 | 277 |
Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 187.6 | 147.9 |
Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 147.7 | 124 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 301.2 | 238.1 |
Industrial | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 209.4 | 172.1 |
Industrial | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 19.2 | 15.4 |
Industrial | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 72.6 | 50.6 |
Commercial & Residential | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 182.7 | 152.2 |
Commercial & Residential | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 40.3 | 28.6 |
Commercial & Residential | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 95.8 | 77.6 |
Commercial & Residential | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 46.6 | 46 |
Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 60.4 | 49.8 |
Energy | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 29.4 | 20.7 |
Energy | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 7.5 | 6 |
Energy | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 23.5 | 23.1 |
Infrastructure | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 150.4 | 108.8 |
Infrastructure | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 80.3 | 55.6 |
Infrastructure | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 65.1 | 48.9 |
Infrastructure | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5 | 4.3 |
Developed Europe (1) | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 149 | 134.7 |
Developed Europe (1) | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 81.3 | 73.4 |
Developed Europe (1) | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 34.7 | 30.8 |
Developed Europe (1) | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 33 | 30.5 |
Developing Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 70.2 | 60.4 |
Developing Countries | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 36.9 | 24.4 |
Developing Countries | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 10.9 | 9 |
Developing Countries | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 22.4 | 27 |
Other Developed Countries | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 13.8 | 10.4 |
Other Developed Countries | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.6 | 3.5 |
Other Developed Countries | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4.1 | 4.2 |
Other Developed Countries | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 5.1 | 2.7 |
U.S. and Canada | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 461.7 | 343.4 |
U.S. and Canada | Enclosures | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 236.6 | 175.7 |
U.S. and Canada | Electrical & Fastening Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 137.9 | 103.9 |
U.S. and Canada | Thermal Management | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 87.2 | $ 63.8 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 53.5 | $ 48.9 |
Contract liabilities | 18.6 | 17.8 |
Net contract assets | 34.9 | $ 31.1 |
$ Change | ||
Contract assets | 4.6 | |
Contract liabilities | 0.8 | |
Net contract assets | $ (3.8) | |
% Change | ||
Contract assets | 9.40% | |
Contract liabilities | 4.50% | |
Net contract assets | 12.20% |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Net contract assets (liabilities) | $ 3,800,000 |
Impairment losses on contract assets | $ 0 |
Revenue - Performance Obligatio
Revenue - Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 33.1 |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 12 months |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected timing of satisfaction period | 18 months |
Restructuring - Costs Included
Restructuring - Costs Included in Selling, General & Administrative Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 2 | $ 0.8 |
Severance and related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 2 | 0.2 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0 | $ 0.6 |
Restructuring - Costs by Report
Restructuring - Costs by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | $ 2 | $ 0.8 |
Enclosures | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 0.2 | 1 |
Thermal Management | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 0 | 0.2 |
Electrical & Fastening Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | 0 | 0.2 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Total restructuring costs | $ 1.8 | $ (0.6) |
Restructuring - Accrual Activit
Restructuring - Accrual Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 2.4 | $ 6.6 |
Costs incurred | 2 | 0.2 |
Cash payments and other | (2.2) | (3.2) |
Ending balance | $ 2.2 | $ 3.6 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 67.8 | $ 65.4 |
Weighted average common shares outstanding | ||
Basic (shares) | 166.2 | 167.7 |
Dilutive impact of stock options, restricted stock units and performance share units | 2 | 1.1 |
Diluted (shares) | 168.2 | 168.8 |
Earnings per ordinary share | ||
Basic pro forma earnings per ordinary share (in dollars per share) | $ 0.41 | $ 0.39 |
Diluted pro forma earnings per ordinary share (in dollars per share) | $ 0.40 | $ 0.39 |
Anti-dilutive stock options excluded from the calculation of diluted earnings per share | 0.2 | 2 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Apr. 01, 2021 | Mar. 31, 2022 |
Vynckier | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | $ 27 | ||
Goodwill | 13.5 | ||
Definite-lived customer relationships | $ 6.1 | ||
Estimated useful life of intangible asset (in years) | 11 years | ||
CIS Global LLC | |||
Business Acquisition [Line Items] | |||
Payments to acquire businesses, gross | $ 202.4 | ||
Goodwill | 83.3 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 30.9 | ||
CIS Global LLC | Customer relationships | |||
Business Acquisition [Line Items] | |||
Definite-lived customer relationships | $ 78 | ||
Estimated useful life of intangible asset (in years) | 16 years | ||
CIS Global LLC | Developed Technology Rights | |||
Business Acquisition [Line Items] | |||
Definite-lived customer relationships | $ 24.5 | ||
CIS Global LLC | Developed Technology Rights | Maximum | |||
Business Acquisition [Line Items] | |||
Estimated useful life of intangible asset (in years) | 12 years | ||
CIS Global LLC | Developed Technology Rights | Minimum | |||
Business Acquisition [Line Items] | |||
Estimated useful life of intangible asset (in years) | 9 years |
Goodwill and Other Identifiab_3
Goodwill and Other Identifiable Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization | $ 17.8 | $ 15.9 |
Goodwill and Other Identifiab_4
Goodwill and Other Identifiable Intangible Assets - Changes in Carrying Amount of Goodwill by Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 2,186.7 |
Acquisitions/divestitures | 0 |
Foreign currency translation/other | (1.5) |
Ending Balance | 2,185.2 |
Enclosures | |
Goodwill [Roll Forward] | |
Beginning Balance | 420.4 |
Acquisitions/divestitures | 0 |
Foreign currency translation/other | (2.5) |
Ending Balance | 417.9 |
Electrical & Fastening Solutions | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,052 |
Acquisitions/divestitures | 0 |
Foreign currency translation/other | 0 |
Ending Balance | 1,052 |
Thermal Management | |
Goodwill [Roll Forward] | |
Beginning Balance | 714.3 |
Acquisitions/divestitures | 0 |
Foreign currency translation/other | 1 |
Ending Balance | $ 715.3 |
Goodwill and Other Identifiab_5
Goodwill and Other Identifiable Intangible Assets - Definite-life Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | $ 1,336.2 | $ 1,336.2 |
Accumulated amortization | (483.5) | (465.5) |
Net | 852.7 | 870.7 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 1,295.4 | 1,295.4 |
Accumulated amortization | (471.1) | (454) |
Net | 824.3 | 841.4 |
Proprietary technology and patents | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Cost | 40.8 | 40.8 |
Accumulated amortization | (12.4) | (11.5) |
Net | $ 28.4 | $ 29.3 |
Goodwill and Other Identifiab_6
Goodwill and Other Identifiable Intangible Assets - Indefinite-life Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Amortization | $ 17.8 | $ 15.9 | |
Cost | 1,609.3 | $ 1,609.3 | |
Accumulated amortization | (483.5) | (465.5) | |
Net | 1,125.8 | 1,143.8 | |
Trade names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-life intangibles | $ 273.1 | $ 273.1 |
Goodwill and Other Identifiab_7
Goodwill and Other Identifiable Intangible Assets - Estimated Future Amortization Expense for Identifiable Intangible Assets (Details) $ in Millions | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Q2-Q4 2022 | $ 53.3 |
2023 | 70.9 |
2024 | 70.2 |
2025 | 70.2 |
2026 | 70.2 |
2027 | $ 70.2 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventories | ||
Raw materials and supplies | $ 119.9 | $ 104.5 |
Work-in-process | 38.7 | 33.3 |
Finished goods | 189.7 | 184.1 |
Total inventories | 348.3 | 321.9 |
Other current assets | ||
Contract assets | 53.5 | 48.9 |
Prepaid expenses | 61.6 | 49.6 |
Prepaid income taxes | 5.1 | 2.2 |
Other current assets | 3.6 | 1.3 |
Total other current assets | 123.8 | 102 |
Property, plant and equipment, net | ||
Land and land improvements | 38.9 | 39.8 |
Buildings and leasehold improvements | 181.9 | 184.5 |
Machinery and equipment | 493.2 | 488.5 |
Construction in progress | 25.1 | 25.5 |
Total property, plant and equipment | 739.1 | 738.3 |
Accumulated depreciation and amortization | 451.6 | 447.2 |
Total property, plant and equipment, net | 287.5 | 291.1 |
Other non-current assets | ||
Deferred compensation plan assets | 19 | 21.4 |
Lease right-of-use assets | 79.1 | 79.1 |
Deferred tax assets | 14.3 | 14.6 |
Other non-current assets | 27.8 | 26 |
Total other non-current assets | 140.2 | 141.1 |
Other current liabilities | ||
Dividends payable | 30 | 30.5 |
Accrued rebates | 57.6 | 88.2 |
Contract liabilities | 18.6 | 17.8 |
Accrued taxes payable | 30.7 | 32.4 |
Current lease liabilities | 17.4 | 17.4 |
Other current liabilities | 80.6 | 70.1 |
Total other current liabilities | 234.9 | 256.4 |
Other non-current liabilities | ||
Income taxes payable | 30.2 | 30.3 |
Deferred compensation plan liabilities | 19 | 21.4 |
Non-current lease liabilities | 66.8 | 66.5 |
Other non-current liabilities | 10.5 | 11 |
Total other non-current liabilities | $ 126.5 | $ 129.2 |
Derivatives and Financial Ins_3
Derivatives and Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative instruments in hedges, net | $ 12.9 | $ 16.7 |
Cash flows relating to settlement of interest rate swap | 9.6 | |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | 163.4 | 180.1 |
Currency Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | 360.6 | $ 369.1 |
Interest Rate Swap | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 200 |
Derivatives and Financial Ins_4
Derivatives and Financial Instruments - Recorded Amounts and Estimated Fair Values (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Total | $ 1,052 | |
Recorded Amount | ||
Derivative [Line Items] | ||
Variable rate debt | 252 | $ 205.5 |
Fixed rate debt | 800 | 800 |
Total | 1,052 | 1,005.5 |
Fair Value | ||
Derivative [Line Items] | ||
Variable rate debt | 252 | 205.5 |
Fixed rate debt | 1,045.4 | 866.8 |
Total | $ 1,297.4 | $ 1,072.3 |
Derivatives and Financial Ins_5
Derivatives and Financial Instruments - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | $ 19 | $ 21.4 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 19 | 21.4 |
Total recurring fair value measurements | 29.9 | 29.4 |
Recurring | Currency Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | (0.6) | (1.7) |
Foreign currency contract assets | 11.7 | 9.5 |
Recurring | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | (1.7) | (0.2) |
Foreign currency contract assets | 1.5 | 0.4 |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 13.9 | 15.5 |
Total recurring fair value measurements | 13.9 | 15.5 |
Recurring | Level 1 | Currency Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Recurring | Level 1 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Total recurring fair value measurements | 10.9 | 8 |
Recurring | Level 2 | Currency Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | (0.6) | (1.7) |
Foreign currency contract assets | 11.7 | 9.5 |
Recurring | Level 2 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | (1.7) | (0.2) |
Foreign currency contract assets | 1.5 | 0.4 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 0 | 0 |
Total recurring fair value measurements | 0 | 0 |
Recurring | Level 3 | Currency Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Recurring | Level 3 | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Recurring | NAV | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plan assets | 5.1 | 5.9 |
Total recurring fair value measurements | 5.1 | 5.9 |
Recurring | NAV | Currency Swap | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | 0 | 0 |
Recurring | NAV | Foreign Exchange Contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 0 | 0 |
Foreign currency contract assets | $ 0 | $ 0 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 1,052 | |
Unamortized debt issuance costs and discounts | (6.2) | $ (6.3) |
Total debt | 1,045.8 | 999.2 |
Less: Current maturities and short-term borrowings | (5) | (5) |
Long-term debt | $ 1,040.8 | 994.2 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Average interest rate at March 31, 2022 | 1.552% | |
Senior Notes [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 154.5 | 106.7 |
Senior Notes [Member] | Term Loan Facility | ||
Debt Instrument [Line Items] | ||
Average interest rate at March 31, 2022 | 1.697% | |
Long-term debt, gross | $ 97.5 | 98.8 |
Senior Notes [Member] | Senior Notes, Due 2023 | ||
Debt Instrument [Line Items] | ||
Average interest rate at March 31, 2022 | 3.95% | |
Senior Notes [Member] | Senior Notes, Due 2028 | ||
Debt Instrument [Line Items] | ||
Average interest rate at March 31, 2022 | 4.55% | |
Long-term debt, gross | $ 500 | $ 500 |
Senior Notes [Member] | Senior Notes Two Point Seven Five Percent Due Twenty Thirty One | ||
Debt Instrument [Line Items] | ||
Average interest rate at March 31, 2022 | 2.75% | 2.75% |
Long-term debt, gross | $ 300 | $ 300 |
Debt - Senior Notes (Details)
Debt - Senior Notes (Details) - Senior Notes [Member] | Mar. 31, 2022USD ($) |
Senior Notes, Due 2023 | |
Debt Instrument [Line Items] | |
Debt face amount | $ 300,000,000 |
Average interest rate | 3.95% |
Senior Notes, Due 2028 | |
Debt Instrument [Line Items] | |
Debt face amount | $ 500,000,000 |
Average interest rate | 4.55% |
Debt - Senior Credit Facilities
Debt - Senior Credit Facilities (Details) | 1 Months Ended | 3 Months Ended | ||
Sep. 30, 2021USD ($) | Mar. 31, 2018 | Mar. 31, 2022USD ($) | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term Debt, Gross | $ 1,052,000,000 | |||
Senior Notes [Member] | Senior Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Leverage ratio covenant | 3.75 | |||
Leverage ratio covenant period | 12 months | |||
EBITDA ratio covenant | 3 | |||
Senior Notes [Member] | Senior Credit Facilities | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, consolidated unrestricted cash | $ 5,000,000 | |||
Senior Notes [Member] | Senior Credit Facilities | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt covenant, consolidated unrestricted cash | 250,000,000 | |||
Senior Notes [Member] | Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | 5 years | ||
Maximum borrowing capacity | $ 300,000,000 | 200,000,000 | ||
Long-term Debt, Gross | 97,500,000 | $ 98,800,000 | ||
Senior Notes [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | 5 years | ||
Maximum borrowing capacity | $ 600,000,000 | 600,000,000 | ||
Line of credit increase limit | $ 300,000,000 | |||
Long-term Debt, Gross | 154,500,000 | $ 106,700,000 | ||
Line of credit facility, remaining borrowing capacity | $ 445,500,000 |
Debt - Schedule of Contracutal
Debt - Schedule of Contracutal Debt Maturities (Details) $ in Millions | Mar. 31, 2022USD ($) |
Debt Disclosure [Abstract] | |
Q2-Q4 2019 | $ 3.8 |
2020 | 5 |
2021 | 5.6 |
2022 | 7.5 |
2023 | 230.1 |
2024 | 0 |
Thereafter | 800 |
Total | $ 1,052 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Income Tax Examination [Line Items] | |||
Effective income tax rate | 17.60% | 8.80% | |
Total gross liability for unrecognized tax benefits | $ 15.5 | $ 15.6 | |
Foreign Tax Authority | |||
Income Tax Examination [Line Items] | |||
Discrete tax benefit | $ 5.2 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | May 14, 2021 | Feb. 19, 2019 | Jul. 23, 2018 | |
Equity [Abstract] | ||||||
Repurchase of shares of our common stock up to a maximum aggregate value | $ 300 | $ 380 | $ 500 | |||
Stock Repurchased During Period, Shares | 0.1 | 0.9 | ||||
Stock Repurchased During Period, Value | $ (3.9) | $ (20) | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 200 | |||||
Dividends payable (in dollars per share) | $ 0.175 | |||||
Dividends payable | $ 30 | $ 30.5 |
Segment Information - Financial
Segment Information - Financial Information by Reportable Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 694.7 | $ 548.9 |
Segment income | 90.1 | 80.4 |
Enclosures | ||
Segment Reporting Information [Line Items] | ||
Net sales | 359.4 | 277 |
Segment income | 50.3 | 48.8 |
Electrical & Fastening Solutions | ||
Segment Reporting Information [Line Items] | ||
Net sales | 187.6 | 147.9 |
Segment income | 47.1 | 39.2 |
Thermal Management | ||
Segment Reporting Information [Line Items] | ||
Net sales | 147.7 | 124 |
Segment income | 32.4 | 21 |
Other | ||
Segment Reporting Information [Line Items] | ||
Segment income | (19.6) | (11.9) |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Segment income | $ 110.2 | $ 97.1 |
Segment Information - Reconcili
Segment Information - Reconciliation of Operating Profit (Losee) from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | $ 90.1 | $ 80.4 |
Intangible amortization | (17.8) | (15.9) |
Restructuring and other | (2) | (0.8) |
Net interest expense | (7.2) | (8.1) |
Other expense | (0.6) | (0.6) |
Income before income taxes | 82.3 | 71.7 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Segment income | 110.2 | 97.1 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Intangible amortization | (17.8) | (15.9) |
Restructuring and other | (2) | (0.8) |
Acquisition transaction and integration costs | (0.3) | 0 |
Net interest expense | (7.2) | (8.1) |
Other expense | $ (0.6) | $ (0.6) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Liability for services and product warranties | $ 0 | $ 0 |
Stand-by Letters of Credit, Bank Guarantees and Bonds | ||
Guarantor Obligations [Line Items] | ||
Obligations outstanding | $ 41,000,000 | $ 38,200,000 |