Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jul. 31, 2019 | Sep. 13, 2019 | Jan. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | DONALDSON CO INC | ||
Entity Central Index Key | 0000029644 | ||
Current Fiscal Year End Date | --07-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jul. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 126,161,252 | ||
Entity Public Float | $ 6,011,616,493 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 2,844.9 | $ 2,734.2 | $ 2,371.9 |
Cost of sales | 1,896.6 | 1,798.4 | 1,551 |
Gross profit | 948.3 | 935.8 | 820.9 |
Selling, general and administrative | 497.8 | 498.9 | 442.6 |
Research and development | 62.3 | 59.9 | 54.7 |
Operating income | 388.2 | 377 | 323.6 |
Interest expense | 19.9 | 21.3 | 19.5 |
Other income, net | (6.9) | (7.9) | (17.9) |
Earnings before income taxes | 375.2 | 363.6 | 322 |
Income taxes | 108 | 183.3 | 89.2 |
Net earnings | $ 267.2 | $ 180.3 | $ 232.8 |
Weighted average shares – basic (in shares) | 128.3 | 130.3 | 132.6 |
Weighted average shares – diluted (in shares) | 130.3 | 132.2 | 134.1 |
Net earnings per share – basic (in dollars per share) | $ 2.08 | $ 1.38 | $ 1.76 |
Net earnings per share – diluted (in dollars per share) | $ 2.05 | $ 1.36 | $ 1.74 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 267.2 | $ 180.3 | $ 232.8 |
Other comprehensive income (loss): | |||
Foreign currency translation (loss) income | (26.6) | (7.3) | 30.5 |
Pension liability adjustment, net of deferred taxes of $5.0, $(4.7) and $(11.2), respectively | (16.1) | 12.2 | 20.7 |
(Losses) gains on hedging derivatives, net of deferred taxes of $0.1, $(1.1) and $1.2, respectively | (0.5) | ||
(Losses) gains on hedging derivatives, net of deferred taxes of $0.1, $(1.1) and $1.2, respectively | 2.3 | (2.6) | |
Reclassification of losses (gains) on hedging derivatives to net income, net of taxes of $0, $0 and $0, respectively | 0.1 | ||
Reclassification of losses (gains) on hedging derivatives to net income, net of taxes of $0, $0 and $0, respectively | 0 | 0 | |
Total derivatives | (0.4) | ||
Total derivatives | 2.3 | (2.6) | |
Net other comprehensive (loss) income | (43.1) | 7.2 | 48.6 |
Comprehensive income | $ 224.1 | $ 187.5 | $ 281.4 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Pension and postretirement liability adjustment, deferred taxes | $ 5 | $ (4.7) | $ (11.2) |
(Losses) gains on hedging derivatives, deferred taxes | 0.1 | ||
(Losses) gains on hedging derivatives, deferred taxes | (1.1) | 1.2 | |
Reclassification of losses (gains) on hedging derivatives to net income, taxes | $ 0 | ||
Reclassification of losses (gains) on hedging derivatives to net income, taxes | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 177.8 | $ 204.7 |
Accounts receivable, less allowance of $4.8 and $8.3, respectively | 529.5 | 534.6 |
Inventories, net | 332.8 | 334.1 |
Prepaid expenses and other current assets | 82.5 | 52.3 |
Total current assets | 1,122.6 | 1,125.7 |
Property, plant and equipment, net | 588.9 | 509.3 |
Goodwill | 303.1 | 238.4 |
Intangible assets, net | 70.9 | 35.6 |
Deferred income taxes | 14.2 | 19.2 |
Other long-term assets | 42.9 | 48.4 |
Total assets | 2,142.6 | 1,976.6 |
Current liabilities: | ||
Short-term borrowings | 2.1 | 28.2 |
Current maturities of long-term debt | 50.2 | 15.3 |
Trade accounts payable | 237.5 | 201.3 |
Accrued employee compensation and related taxes | 87.8 | 103.5 |
Accrued liabilities | 32.2 | 34.5 |
Other current liabilities | 73.1 | 86.6 |
Total current liabilities | 482.9 | 469.4 |
Long-term debt | 584.4 | 499.6 |
Non-current income taxes payable | 110.9 | 105.3 |
Deferred income taxes | 13.2 | 4.2 |
Other long-term liabilities | 48.5 | 40.3 |
Total liabilities | 1,239.9 | 1,118.8 |
Commitments and contingencies (Note 17) | ||
Redeemable non-controlling interest | 10 | 0 |
Shareholders’ equity: | ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized, none issued | 0 | 0 |
Common stock, $5.00 par value, 240,000,000 shares authorized, 151,643,194 shares issued | 758.2 | 758.2 |
Non-controlling interest | 1,281.5 | 1,122.1 |
Stock compensation plans | 5.4 | 4.8 |
Stock compensation plans | 21.7 | 21.3 |
Accumulated other comprehensive loss | (192.9) | (149.8) |
Treasury stock, 24,324,483 and 22,871,145 shares, respectively, at cost | (981.2) | (898.8) |
Total shareholders’ equity | 892.7 | 857.8 |
Total liabilities and shareholders’ equity | $ 2,142.6 | $ 1,976.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 4.8 | $ 8.3 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, share authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 240,000,000 | 240,000,000 |
Common stock, shares issued (in shares) | 151,643,194 | 151,643,194 |
Treasury stock, shares (in shares) | 24,324,483 | 22,871,145 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Operating Activities | |||
Net earnings | $ 267.2 | $ 180.3 | $ 232.8 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 81.1 | 76.7 | 75.2 |
Equity in earnings of affiliates, net of distributions | (1.2) | (2.7) | (0.5) |
Deferred income taxes | 10.2 | 7 | (10.6) |
Stock-based compensation plan expense | 15 | 16.7 | 9.1 |
Other, net | (7.6) | (27.6) | 5.1 |
Changes in operating assets and liabilities, excluding effect of acquired businesses: | |||
Accounts receivable | 1.4 | (41.7) | (31.8) |
Inventories | (5.5) | (43.8) | (42.4) |
Prepaid expenses and other current assets | (9.7) | 3.6 | 12.8 |
Income taxes payable | (2) | 87.9 | 8.5 |
Trade accounts payable and other accrued expenses | (3.1) | 6.5 | 59.6 |
Net cash provided by operating activities | 345.8 | 262.9 | 317.8 |
Investing Activities | |||
Purchases of property, plant and equipment | (150.7) | (97.5) | (65.9) |
Proceeds from sale of property, plant and equipment | 0.3 | 1.6 | 2.4 |
Acquisitions, net of cash acquired | (96) | 0.5 | (32.2) |
Net cash used in investing activities | (246.4) | (95.4) | (95.7) |
Financing Activities | |||
Proceeds from long-term debt | 155 | 197.7 | 0 |
Repayments of long-term debt | (45.9) | (272.4) | (81.7) |
Change in short-term borrowings | (25.3) | 6 | 129.2 |
Purchase of treasury stock | (129.2) | (122) | (140.4) |
Dividends paid | (99.7) | (94.7) | (92.4) |
Tax withholding for stock compensation transactions | (4.1) | (2.6) | (2.6) |
Exercise of stock options | 25.9 | 19.2 | 22.7 |
Net cash used in financing activities | (123.3) | (268.8) | (165.2) |
Effect of exchange rate changes on cash | (3) | (2.4) | 8.3 |
(Decrease) increase in cash and cash equivalents | (26.9) | (103.7) | 65.2 |
Cash and cash equivalents, beginning of year | 204.7 | 308.4 | 243.2 |
Cash and cash equivalents, end of year | 177.8 | 204.7 | 308.4 |
Supplemental Cash Flow Information | |||
Income taxes | 99.3 | 82.6 | 88 |
Interest | 19.1 | 21.9 | 19.9 |
Supplemental disclosure of non-cash investing transactions | |||
Accrued property, plant and equipment additions | $ 16.5 | $ 9 | $ 6.1 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Non- Controlling Interest | Stock Compensation Plans | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Jul. 31, 2016 | $ 771.4 | $ 758.2 | $ 0 | $ 905.1 | $ 4 | $ 16.7 | $ (205.6) | $ (707) |
Comprehensive income | ||||||||
Net earnings | 232.8 | 232.8 | ||||||
Foreign currency translation | 30.5 | 30.5 | ||||||
Pension liability adjustment, net of deferred taxes | 20.7 | 20.7 | ||||||
Loss on hedging derivatives, net of deferred taxes | (2.6) | (2.6) | ||||||
Comprehensive income | 281.4 | |||||||
Treasury stock acquired | (140.4) | (140.4) | ||||||
Stock options exercised | 22.2 | (3.4) | (10.2) | 35.8 | ||||
Stock compensation expense | 9.1 | 7.7 | 0.9 | 0.5 | ||||
Deferred stock and other activity | 3.4 | 3.4 | (1.6) | 0.4 | (1.9) | 3.1 | ||
Dividends | (92.6) | (92.6) | ||||||
Ending Balance at Jul. 31, 2017 | 854.5 | 758.2 | 0 | 1,041.2 | 4.4 | 15.7 | (157) | (808) |
Comprehensive income | ||||||||
Net earnings | 180.3 | 180.3 | ||||||
Foreign currency translation | (7.3) | (7.3) | ||||||
Pension liability adjustment, net of deferred taxes | 12.2 | 12.2 | ||||||
Loss on hedging derivatives, net of deferred taxes | 2.3 | 2.3 | ||||||
Comprehensive income | 187.5 | |||||||
Treasury stock acquired | (122) | (122) | ||||||
Stock options exercised | 18.9 | (9.3) | 28.2 | |||||
Stock compensation expense | 16.7 | 8.7 | 7.5 | 0.5 | ||||
Deferred stock and other activity | (2.1) | (3.1) | 0.4 | (1.9) | 2.5 | |||
Dividends | (95.7) | (95.7) | ||||||
Ending Balance at Jul. 31, 2018 | 857.8 | 758.2 | 0 | 1,122.1 | 4.8 | 21.3 | (149.8) | (898.8) |
Comprehensive income | ||||||||
Net earnings | 267.2 | 267.2 | ||||||
Foreign currency translation | (26.6) | (26.6) | ||||||
Pension liability adjustment, net of deferred taxes | (16.1) | (16.1) | ||||||
Loss on hedging derivatives, net of deferred taxes | (0.5) | (0.5) | ||||||
Reclassification of loss on hedging derivatives to net income | 0.1 | 0.1 | ||||||
Comprehensive income | 224.1 | |||||||
Treasury stock acquired | (129.2) | (129.2) | ||||||
Stock options exercised | 25 | (17.2) | 42.2 | |||||
Stock compensation expense | 15 | 10.9 | 3.8 | 0.3 | ||||
Deferred stock and other activity | 2 | 0.5 | 0.6 | (3.4) | 4.3 | |||
Dividends | (102) | (102) | ||||||
Ending Balance at Jul. 31, 2019 | $ 892.7 | $ 758.2 | $ 0 | $ 1,281.5 | $ 5.4 | $ 21.7 | $ (192.9) | $ (981.2) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - $ / shares | Jul. 26, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends, per share (in dollars per share) | $ 0.210 | $ 0.8 | $ 0.74 | $ 0.71 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business Donaldson is a worldwide manufacturer of filtration systems and replacement parts. The Company’s core strengths are leading filtration technology, strong customer relationships and its global presence. Products are manufactured at 50 plants around the world and through three joint ventures. Products are sold to original equipment manufacturers (OEMs), distributors, dealers and directly to end users. Principles of Consolidation The Consolidated Financial Statements include the accounts of Donaldson Company, Inc. and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s three joint ventures are not majority-owned and are accounted for under the equity method. Certain reclassifications to previously reported financial information have been made to conform to the current period presentation. Use of Estimates The preparation of the Consolidated Financial Statements in conformity with generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Foreign Currency Translation For most foreign operations, local currencies are considered the functional currency. Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at year-end exchange rates and the resulting gains and losses arising from the translation of net assets located outside the U.S. are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss in the Consolidated Balance Sheets. Elements of the Consolidated Statements of Earnings are translated at average exchange rates in effect during the year. Foreign currency transaction losses are included in other income, net in the Consolidated Statements of Earnings and were $4.9 million , $7.4 million and $4.0 million in the years ended July 31, 2019, 2018 and 2017 , respectively. Cash Equivalents The Company considers all highly liquid temporary investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost that approximates market value. Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in its existing accounts receivable. The Company determines the allowance based on historical write-off experience, regional economic data and evaluation of specific customer accounts for risk of loss. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by reporting unit and geographic region. Account balances are reserved when the Company determines it is probable the receivable will not be recovered. Inventories Inventories are stated at the lower of cost and net realizable value. U.S. inventories are valued using the last-in, first-out (LIFO) method while the non-U.S. inventories are valued using the first-in, first-out (FIFO) method. Inventories valued at LIFO were approximately 31.3% and 28.0% of total inventories at July 31, 2019 and 2018 , respectively. For inventories valued under the LIFO method, the FIFO cost exceeded the LIFO carrying values by $39.8 million and $38.2 million at July 31, 2019 and 2018 , respectively. Results of operations for all periods presented were not materially affected by the liquidation of LIFO inventory. Property, Plant and Equipment Property, plant and equipment are stated at cost. Additions, improvements or major renewals are capitalized while expenditures that do not enhance or extend the asset’s useful life are charged to expense as incurred. Depreciation is computed using the straight-line method. Depreciation expense was $73.5 million , $71.1 million and $68.8 million in the years ended July 31, 2019, 2018 and 2017 , respectively. The estimated useful lives of property, plant and equipment are ten to forty years for buildings, including building improvements, and three to ten years for machinery and equipment. Internal-Use Software The Company capitalizes direct costs of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of five to seven years and are reported as a component of property, plant and equipment. Cloud Computing Arrangements The Company capitalizes certain costs incurred during the application development stage of implementation of internal use software in cloud computing arrangements. Amounts capitalized are on a straight-line basis over a period of ten years and are reported as a component of other long-term assets. Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations under the purchase method of accounting. Intangible assets, comprised of customer relationships, patents, trademarks and technology, are amortized on a straight-line basis over their estimated useful lives of five to twenty years. Goodwill is assessed for impairment annually or if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The impairment assessment for goodwill is done at a reporting unit level. Reporting units are one level below the operating segment level but can be combined when reporting units within the same operating segment have similar economic characteristics. An impairment loss would be recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. Recoverability of Long-Lived Assets The Company reviews its long-lived assets, including identifiable intangibles, for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the assets, the carrying value is reduced to the fair market value. There were no impairment charges recorded for the years ended July 31, 2019, 2018 and 2017 . Income Taxes The provision for income taxes is computed based on the pretax income reported for financial statement purposes. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributed to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are anticipated to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more-likely-than-not that a tax benefit will not be realized. The Company maintains a reserve for uncertain tax benefits. Benefits of tax return positions are recognized in the financial statements when the position is “more-likely-than-not” to be sustained by the taxing authorities based solely on the technical merits of the position. If the recognition threshold is met, the tax benefit is measured and recognized as the largest amount of tax benefit that in the Company’s judgment is greater than 50% likely to be realized. Treasury Stock Repurchased common stock is stated at cost (determined on an average cost basis) and is presented as a reduction of shareholders’ equity. Research and Development Expense Research and development expenses include basic scientific research and the application of scientific advances to the development of new and improved products and their uses and are charged against earnings in the year incurred. Shipping and Handling Shipping and handling costs of $76.7 million , $73.5 million and $61.4 million are classified as a component of selling, general and administrative expenses for the years ended July 31, 2019, 2018 and 2017 , respectively. Stock-Based Compensation The Company offers stock-based employee compensation plans, which are more fully described in Note 10. Stock-based employee compensation expense is recognized using the fair-value method for all awards. Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for the fulfillment of performance obligations. The transaction price of a contract could be reduced by variable consideration including product refunds, returns, volume rebates and discounts in the determination of net sales. The Company primarily relies on historical experience and anticipated future performance to estimate the variable consideration. Revenue is recognized to the extent that it is probable that a significant reversal of revenue will not occur when outstanding contingencies are resolved. The Company also accounts for amounts billed to customers for reimbursement of shipping and handling as fulfillment costs by recording these amounts as revenue and accruing the costs when the related revenue is recognized. For most customer contracts, the Company recognizes revenue at a point in time when control of the goods or services is transferred to the customer. For product sales, control is typically deemed to have transferred in accordance with the shipping terms, either at the time of shipment from the plants or distribution centers or the time of delivery to the customers. Revenue is recognized for services upon completion of those services. Due to the customized nature of some of the Company’s products, together with contractual provisions in certain customer contracts that provide the Company with an enforceable right to payment of the transaction price for performance completed to date, revenue is recognized for these contracts over time. For these contracts, the Company recognizes revenue on products by an output measure of production, which fairly depicts the amount of revenue the Company is entitled to. The timing of revenue recognized from these products is slightly accelerated compared to revenue recognized at the point in time of shipment or delivery. Incremental costs of obtaining a contract with a customer and other costs to fulfill a contract are required to be capitalized unless the Company elects to expense contract costs with periods less than a year. The Company has elected to expense these costs of obtaining a contract as incurred when the related contract period is less than one year. The Company does not pay upfront sales commissions on contracts when the related contract period is greater than one year, thus has not capitalized any amounts as of July 31, 2019 , see Note 6. Product Warranties The Company provides for estimated warranty expense at the time of sale and accrues for specific items at the time their existence is known and the amounts are determinable. The Company estimates warranty expense using quantitative measures based on historical warranty claim experience and evaluation of specific customer warranty issues. For a reconciliation of warranty reserves, see Note 9. Forward Foreign Currency Contracts The Company uses forward currency exchange contracts to manage exposure to fluctuations in foreign currency. The Company enters into certain purchase commitments with foreign suppliers based on the value of its purchasing subsidiaries’ local currency relative to the currency requirement of the supplier on the date of the commitment. The Company also sells into foreign countries based on the value of the purchaser’s local currency. The Company mitigates risk through using forward currency contracts that generally mature in 12 months or less, which is consistent with the related purchases and sales. Contracts that qualify for hedge accounting are designated as cash flow hedges. See Note 13. Net Investment Hedges The Company uses fixed-to-fixed cross currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. In July 2019, the Company executed a fixed-to-fixed cross-currency swap in which the Company will pay Euros and receive U.S. Dollars on a notional amount of €50.0 million which matures in July 2029. The Company has elected the spot method of designating this contracts. See Note 13. New Accounting Standards Recently Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606), which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments and assets recognized from the costs to obtain or fulfill a contract. In 2016, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12 and ASU 2016-20 to clarify, among other things, the implementation guidance related to principal versus agent considerations, identifying performance obligations and accounting for licenses of intellectual property. This accounting guidance was effective for the Company beginning in the first quarter of fiscal 2019. The standard was adopted using the modified retrospective method, applying the guidance to those contracts which were not completed as of July 31, 2018, with the cumulative effect of adoption recognized during the first quarter. Refer to Note 6 for the impact of the adoption of this new standard. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (ASU 2017-01). The new guidance provides a more robust framework to use in determining when a set of assets and activities is a business. The amendments provide more consistency in applying the guidance, reduce the costs of application and make the definition of a business more operable. ASU 2017-01 was effective for the Company beginning in the first quarter of fiscal 2019. The Company adopted ASU 2017-01 in the first quarter of fiscal 2019 and it did not have a material impact on its Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) (ASU 2017-07). The new guidance requires employers to disaggregate and present separately the current service cost component from the other components of net benefit cost within the consolidated statement of earnings. ASU 2017-07 was effective for the Company beginning in the first quarter of fiscal 2019. The Company adopted ASU 2017-07 in the first quarter of fiscal 2019 using the retrospective method. This resulted in a reclassification of net benefit costs in the Consolidated Statements of Earnings, with a decrease in other income, net of $3.0 million and $5.0 million for the years ended July 31, 2018 and 2017, respectively, offset in selling, general and administrative and cost of goods sold. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance. The guidance expands the ability to hedge non-financial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness and eases certain hedge effectiveness assessment requirements. ASU 2017-12 is effective for the Company beginning in the first quarter of fiscal 2020, and early adoption is permitted. The Company adopted ASU 2017-12 in the first quarter of fiscal 2019 and it did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the Company beginning in the first quarter of fiscal 2021, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted ASU 2018-15, on a prospective basis, in the third quarter of fiscal 2019 and it did not have a material impact on its Consolidated Financial Statements. New Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02), which requires lessees to recognize right-of-use assets and lease liabilities for substantially all leases. This accounting guidance is effective for the Company beginning in the first quarter of fiscal 2020 on a modified retrospective basis. The Company will prospectively adopt ASU 2016-02 in the first quarter of fiscal 2020, recognizing new right of use assets and lease liabilities for all operating leases on its Consolidated Balance Sheets, with the exception of leases with a noncancelable term of 12 months or less. Upon adoption, the Company estimates both assets and liabilities on its Consolidated Balance Sheets will increase by approximately $65 million to $75 million , which includes the effect of discounting. Changes in the Company’s lease population may impact this estimate. The Company will expand its consolidated financial statement disclosures upon adoption of this standard. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (ASU 2016-13). In November 2018, the FASB issued update ASU 2018-19 that clarifies the scope of the standard in the amendments in ASU 2016-13. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Financial instruments impacted include accounts receivable, trade receivables, other financial assets measured at amortized cost and other off-balance sheet credit exposures. The new guidance is effective for the Company beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-13 on its Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). The guidance allows a company to elect to reclassify from accumulated other comprehensive income (AOCI) to retained earnings the stranded tax effects from the adoption of the newly enacted federal corporate tax rate as a result of the U.S. Tax Cuts and Jobs Act. The amount of the reclassification is calculated as the difference between the amount initially charged to other comprehensive income (OCI) at the previously enacted tax rate that remains in AOCI and the amount that would have been charged using the newly enacted tax rate, excluding any valuation allowance previously charged to income. The new guidance is effective for the Company beginning in the first quarter of fiscal 2020, and early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2018-02 on its Consolidated Financial Statements. In April 2019, the FASB issues ASU 2019-04, Codification Improvements to Topics 326, Financial Instruments - Credit Losses, Topic 815 Derivatives and Hedging and Topic 825, Financial Instruments (ASU 2019-04). This guidance clarifies areas of guidance related to the recently issued standards on credit losses (Topic 326), derivatives and hedging (Topic 815), and recognition and measurement of financial instruments (Topic 825). The new guidance is effective for the Company beginning in the first quarter of fiscal 2021. The Company is evaluating the impact of the adoption of ASU 2019-04 on its Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On October 18, 2018, the Company acquired 88% of the shares of BOFA International LTD (BOFA), headquartered in the United Kingdom, for cash consideration of $98.2 million less cash acquired of $2.2 million . In the fourth quarter of 2019, the Company acquired an additional 3% of the shares, increasing its ownership to 91% . BOFA designs, develops and manufactures fume extraction systems across a wide range of industrial air filtration applications. The acquisition allowed Donaldson to accelerate its global growth in the fume collection business and add additional filtration technology to the Company’s existing product lines. The fair values assigned to the acquired assets and liabilities assumed of BOFA were as follows (in millions): Assets: Net tangible assets $ 12.2 Customer relationships 39.8 Trademarks and technology 6.8 Goodwill 72.9 Assets 131.7 Liabilities: Deferred tax liabilities 8.2 Assumed debt 14.4 Liabilities 22.6 Total fair value 109.1 Company’s initial net consideration paid 96.0 Company’s initial non-controlling interest $ 13.1 The Company’s acquisition of an additional 3% of the shares in the fourth quarter of 2019, had the following impact (in millions): Company’s initial non-controlling interest $ 13.1 Purchase of additional 3% of fair value 3.1 Company’s non-controlling interest as of July 31, 2019 $ 10.0 The assumed debt was repaid in October 2018. The identifiable intangible assets were related to customer relationships, trademarks and technology and have estimated useful lives ranging from 5 to 15 years. The acquired intangible assets including goodwill are not deductible for tax purposes. The Company is reporting BOFA’s results of operations within the Industrial Products segment. Transaction costs were expensed as incurred and were not significant for the year ended July 31, 2019 . The acquisition also provides call and put options that, if exercised by either the Company or the non-controlling interest holders after three years, would obligate the Company to purchase the remaining 9% ( 12% at the time of acquisition) of the shares of BOFA at a price indexed to the performance of the acquired entity. Due to the redemption features, the minority interest holders’ value is classified as a redeemable non-controlling interest in the Company’s Consolidated Balance Sheets. The redeemable non-controlling interest was recorded at fair value at the date of acquisition and there were no significant changes to the fair value during the year ended July 31, 2019 . Pro forma financial information for this acquisition has not been presented because it is not material to the Company’s consolidated results of operations. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information The components of net inventories are as follows (in millions): July 31, 2019 2018 Raw materials $ 114.7 $ 128.7 Work in process 33.0 27.4 Finished products 185.1 178.0 Inventories, net $ 332.8 $ 334.1 The components of net property, plant and equipment are as follows (in millions): July 31, 2019 2018 Land $ 24.2 $ 22.8 Buildings 325.3 310.8 Machinery and equipment 813.5 769.1 Computer software 142.8 132.6 Construction in progress 114.3 64.4 Less: accumulated depreciation (831.2 ) (790.4 ) Net property, plant and equipment $ 588.9 $ 509.3 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company’s basic net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares. The Company’s diluted net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents related to stock options and stock incentive plans. Certain outstanding options are excluded from the diluted net earnings per share calculations because their exercise prices are greater than the average market price of the Company’s common stock during those periods. Options excluded from the diluted net earnings per share calculation were 0.8 million , 0.1 million and 1.0 million for the years ended July 31, 2019, 2018 and 2017 , respectively. The following table presents the information necessary to calculate basic and diluted earnings per share (in millions, except per share amounts): Year Ended July 31, 2019 2018 2017 Net earnings for basic and diluted earnings per share computation $ 267.2 $ 180.3 $ 232.8 Weighted average common shares outstanding: Weighted average common shares – basic 128.3 130.3 132.6 Dilutive impact of share-based awards 2.0 1.9 1.5 Weighted average common shares – diluted 130.3 132.2 134.1 Net earnings per share – basic $ 2.08 $ 1.38 $ 1.76 Net earnings per share – diluted $ 2.05 $ 1.36 $ 1.74 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company has allocated goodwill to reporting units within its Engine Products and Industrial Products segments. On October 18, 2018, the Company acquired BOFA and recorded goodwill for this transaction. See Note 2 for additional discussion of the acquisition. There was no disposition activity or impairment charges recorded during the years ended July 31, 2019 and 2018 . The following is a reconciliation of goodwill for the years ended July 31, 2019 and 2018 (in millions): Engine Products Industrial Products Total July 31, 2017 $ 84.3 $ 153.8 $ 238.1 Goodwill acquired 0.6 — 0.6 Currency translation — (0.3 ) (0.3 ) July 31, 2018 84.9 153.5 238.4 Goodwill acquired — 72.9 72.9 Currency translation (0.4 ) (7.8 ) (8.2 ) July 31, 2019 $ 84.5 $ 218.6 $ 303.1 The following table summarizes the net intangible assets for the years ended July 31, 2019 and 2018 (in millions): July 31, 2019 July 31, 2018 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 10.0 $ 101.5 $ (43.3 ) $ 63.0 $ (35.7 ) Patents, trademarks and technology 6.2 22.3 (9.6 ) 43.7 (35.4 ) Total other intangible assets, net $ 123.8 $ (52.9 ) $ 106.7 $ (71.1 ) Expected amortization expense relating to existing intangible assets is as follows (in millions): Year Ending July 31, Amount 2020 $ 8.0 2021 7.8 2022 7.0 2023 5.9 2024 5.5 Thereafter 36.7 Total expected amortization expense $ 70.9 |
Revenue
Revenue | 12 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue on a wide range of filtration solutions sold to customers in many industries around the globe. The vast majority of the Company’s performance obligations within customer sales contracts are for manufactured filtration systems and replacement parts. The Company does perform limited services, such as installation. Customer contracts may include multiple performance obligations and the transaction price is allocated to each distinct performance obligation based on its relative standalone selling price. Revenue Disaggregation Net sales disaggregated by geography based on the location where the customer’s order was placed (in millions): Year Ended July 31, 2019 2018 2017 United States $ 1,192.6 $ 1,120.8 $ 990.4 Europe, Middle East and Africa 826.8 791.5 679.1 Asia Pacific 597.9 599.2 500.5 Latin America 227.6 222.7 201.9 Total net sales $ 2,844.9 $ 2,734.2 $ 2,371.9 Net sales disaggregated by product group (in millions): Year Ended July 31, 2019 2018 2017 Engine Products segment Off-Road $ 315.1 $ 327.4 $ 252.1 On-Road 179.8 154.2 110.7 Aftermarket 1,315.3 1,261.9 1,086.2 Aerospace and Defense 115.8 105.5 104.3 Engine Products segment net sales 1,926.0 1,849.0 1,553.3 Industrial Products segment Industrial Filtration Solutions 641.8 594.3 533.2 Gas Turbine Systems 106.3 115.5 122.9 Special Applications 170.8 175.4 162.5 Industrial Products segment net sales 918.9 885.2 818.6 Total net sales $ 2,844.9 $ 2,734.2 $ 2,371.9 Contract Assets and Liabilities The satisfaction of performance obligations and the resulting recognition of revenue typically corresponds with billing of the customer. In limited circumstances, the customer may be billed at a time later than when revenue is recognized, resulting in contract assets, which are reported in prepaid expenses and other current assets on the Consolidated Balance Sheets. Contract assets were $12.4 million as of July 31, 2019 . In other limited circumstances, the Company will require a down payment from the customer prior to the satisfaction of performance obligations. This results in contract liabilities, or deferred revenue, which is reported in other current liabilities and other long-term liabilities on the Consolidated Balance Sheets, depending on when revenue is expected to be recognized. Contract liabilities were $10.4 million and $10.5 million as of July 31, 2019 and 2018 , respectively. The Company will recognize revenue in future periods related to remaining performance obligations for certain open contracts. Generally, these contracts have terms of one year or less . The amount of revenue related to unsatisfied performance obligations in which the original duration of the contract is greater than one year is not significant. Adoption of ASC 606 Note 1 describes the requirements of the new revenue recognition standard, ASC 606. The cumulative effect of the adoption on the Company’s August 1, 2018 opening balance sheet is as follows (in millions): Balance at July 31, 2018 Adjustments for ASC 606 Balance at August 1, 2018 Assets Inventories, net $ 334.1 $ (7.3 ) $ 326.8 Prepaid expense and other current assets 52.3 14.0 66.3 Liabilities Other current liabilities 86.6 0.3 86.9 Deferred income taxes 4.2 1.1 5.3 Equity Retained earnings 1,122.1 5.3 1,127.4 These adjustments primarily related to certain contracts that qualify for revenue recognition over time under the new standard. This change does not have a material impact on revenue recognized during the year ended July 31, 2019 . In addition, the adoption of ASC 606 impacted one set of contracts within the Engine Products segment in which Donaldson is now deemed to be the principal under the new standard because the Company has control through the manufacturing of products prior to the sale of those products to the customer. For these contracts, the previous practice of recognizing revenue on a net basis, in which the amount of net sales recorded is the net amount retained after paying product costs to suppliers, has changed under ASC 606 to recognizing revenue on a gross basis, in which the amount of net sales recorded is the gross amount received from the customer, with corresponding product costs recorded as cost of sales. This change did not result in a cumulative effect adjustment under the modified retrospective method of adoption since there is no impact to the timing of revenue recognition but it has increased net sales and cost of sales on a prospective basis. The increase in net sales and cost of sales for this change was $16.1 million for the year ended July 31, 2019 . |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | Short-Term Borrowings Short-term borrowings consist of the following (in millions, except interest rates): U.S. Credit Facilities European Commercial Paper Program European Operations Credit Facilities Rest of the World Credit Facilities Total Year Ended July 31, 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Available credit facilities $ 90.0 $ 80.0 $ 111.5 $ 117.4 $ 74.4 $ 81.5 $ 63.6 $ 64.3 $ 339.5 $ 343.2 Reductions to borrowing capacity: Outstanding borrowings 2.1 — — 28.2 — — — — 2.1 28.2 Other non-borrowing reductions — — — — 34.7 34.7 23.0 21.5 57.7 56.2 Total reductions 2.1 — — 28.2 34.7 34.7 23.0 21.5 59.8 84.4 Remaining borrowing capacity $ 87.9 $ 80.0 $ 111.5 $ 89.2 $ 39.7 $ 46.8 $ 40.6 $ 42.8 $ 279.7 $ 258.8 Weighted average interest rate at end of period 3.33 % N/A N/A 0.26 % N/A N/A N/A N/A |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in millions): July 31, 2019 2018 3.72% Unsecured senior notes, interest payable semi-annually, principal payment of $125.0 million due March 27, 2024 $ 125.0 $ 125.0 2.93% Unsecured senior notes, interest payable semi-annually, principal payment of $25.0 million due April 16, 2025 25.0 25.0 3.18% Unsecured senior notes, interest payable semi-annually, principal payment of $125.0 million due June 17, 2030 125.0 125.0 Variable rate committed, unsecured $500.0 million revolving credit facility due July 21, 2022 and an interest rate of 2.55% as of July 31, 2019 286.5 167.4 Variable rate committed, unsecured $50.0 million term loan due July 21, 2020 and an interest rate of 3.55% as of July 31, 2019 50.0 50.0 Variable rate guaranteed senior note, interest payable quarterly, principal payment of ¥1.65 billion due May 20, 2024 and an interest rate of 0.41% as of July 31, 2019 15.2 14.8 Variable rate guaranteed senior note, interest payable quarterly, principal payment of ¥1.00 billion due July 15, 2021 and an interest rate of 0.26% as of July 31, 2019 9.2 9.0 Capitalized lease obligations, with various maturity dates and interest rates 0.2 0.6 Debt issuance costs, net (1.5 ) (1.9 ) Subtotal 634.6 514.9 Less: current maturities 50.2 15.3 Total long-term debt $ 584.4 $ 499.6 The estimated future maturities of the Company’s long-term debt as of July 31, 2019 , are as follows (in millions): Year Ended July 31, Amount 2020 $ 50.2 2021 8.8 2022 286.1 2023 — 2024 140.0 Thereafter 149.5 Total estimated future maturities $ 634.6 The Company has a $500 million revolving credit facility (included in the tables above) with a group of lenders, in which it can borrow in multiple currencies, that matures July 21, 2022. Key provisions are as follows: • The credit facility has an accordion feature in which the Company can request to increase the credit facility by up to $250.0 million , subject to terms of agreement including written notification and lender acceptance. • Remaining borrowing capacity reflects the issued standby letters of credit, as discussed in Note 16, as issued standby letters of credit reduce the amounts available for borrowing. Certain debt agreements contain financial covenants related to interest coverage and leverage ratios. As of July 31, 2019 , the Company was in compliance with all such covenants. |
Warranty
Warranty | 12 Months Ended |
Jul. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty | Warranty The Company estimates warranty expense on certain products at the time of sale. The following is a reconciliation of warranty reserves for the years ended July 31, 2019 and 2018 (in millions): Year Ended July 31, 2019 2018 Balance at beginning of period $ 18.9 $ 14.6 Accruals for warranties issued during the reporting period 2.5 8.3 Accruals related to pre-existing warranties (including changes in estimates) (2.3 ) 0.1 Less settlements made during the period (7.9 ) (4.1 ) Balance at end of period $ 11.2 $ 18.9 There were no material specific warranty matters accrued for or significant settlements made during the years ended July 31, 2019 and 2018 . The Company’s warranty matters are not expected to have a material impact on the Company’s results of operations, liquidity or financial position. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jul. 31, 2019 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The 2010 Master Stock Incentive Plan (the Plan) allows for the granting of nonqualified stock options, incentive stock options, restricted stock, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards. Stock Options Options under the Plan are granted to key employees whereby the option exercise price is equivalent to the market price of the Company’s common stock at the date of grant. Options are generally exercisable for up to 10 years from the date of grant and vest in equal increments over three years. For the years ended July 31, 2019, 2018 and 2017 , the Company recorded pretax stock-based compensation expense associated with stock options of $9.8 million , $8.1 million and $7.5 million , respectively. Compensation costs for stock-based payments are included in selling, general and administrative expenses. The Company issues treasury shares upon option exercise. The Company also recorded tax benefits associated with this compensation expense of $2.0 million , $1.9 million and $2.2 million for the years ended July 31, 2019, 2018 and 2017 , respectively. Stock-based employee compensation expense is recognized using the fair-value method for all stock option awards. The Company determined the fair value of these awards using the Black-Scholes option pricing model with the following assumptions: Year Ended July 31, 2019 2018 2017 Risk-free interest rate 2.1 - 3.1% 2.0 - 2.9% 2.5 - 2.6% Expected volatility 16.0 - 21.5% 18.2 - 20.6% 20.8 - 24.1% Expected dividend yield 1.6 % 1.6 % 1.7 % Expected life: Director and officer grants 8 years 8 years 8 years Non-officer original grants 7 years 7 years 7 years The weighted average fair value for options granted during the years ended July 31, 2019, 2018 and 2017 was $12.27 , $9.29 and $10.09 per share, respectively, using the Black-Scholes pricing model. The following table summarizes stock option activity for the years ended July 31, 2019, 2018 and 2017 : Options Outstanding Weighted Average Exercise Price (1) Outstanding at July 31, 2016 6,822,390 $ 30.09 Granted 888,500 42.65 Exercised (978,193 ) 24.04 Canceled (47,146 ) 36.51 Outstanding at July 31, 2017 6,685,551 32.60 Granted 881,050 45.70 Exercised (738,635 ) 26.47 Canceled (42,154 ) 39.52 Outstanding at July 31, 2018 6,785,812 34.93 Granted 908,925 58.02 Exercised (1,103,054 ) 25.07 Canceled (60,433 ) 50.57 Outstanding at July 31, 2019 6,531,250 39.66 (1) Weighted average shares are calculated using the Black-Scholes model. The total intrinsic value of options exercised during the years ended July 31, 2019, 2018 and 2017 was $30.3 million , $16.0 million and $18.3 million , respectively. The number of shares reserved at July 31, 2019 for outstanding options and future grants was 7,738,519 . Shares reserved consist of shares available for grant plus all outstanding options. The following table summarizes information concerning outstanding and exercisable options as of July 31, 2019 : Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $16.91 to $32.49 1,493,111 3.9 $ 27.46 1,493,111 $ 27.46 $32.50 to $37.49 1,211,064 3.0 34.41 1,211,064 34.41 $37.50 to $42.49 1,283,417 5.2 40.30 1,239,817 40.23 $42.50 to $47.49 1,653,643 7.6 44.00 840,920 43.56 $47.50 and above 890,015 9.0 58.27 34,900 52.08 6,531,250 5.6 39.66 4,819,812 35.48 At July 31, 2019 , the aggregate intrinsic value of shares outstanding and exercisable was $74.7 million and $69.9 million , respectively. The following table summarizes the status of options that contain vesting provisions: Options Weighted Average Grant Date Fair Value Non-vested at July 31, 2018 1,741,316 $ 9.20 Granted 908,925 12.27 Vested (890,816 ) 8.70 Canceled (47,987 ) 10.09 Non-vested at July 31, 2019 1,711,438 11.06 The total fair value of options vested during years ended July 31, 2019, 2018 and 2017 , was $44.5 million , $42.0 million and $39.6 million , respectively. As of July 31, 2019 , there was $8.0 million of total unrecognized compensation expense related to non-vested stock options granted under the Plan. This unvested expense is expected to be recognized during fiscal years 2020, 2021 and 2022. Performance-based awards The Plan also allows for the granting of performance-based awards to a limited number of key executives. As administered by the Human Resources Committee of the Company’s Board of Directors, these performance-based awards are payable in common stock and are based on a formula that measures performance of the Company over a three -year period. These awards are settled or forfeited after three years with payouts ranging from zero to 200% of the target award value depending on achievement. Performance-based award expense under these plans totaled $3.8 million , $7.5 million and $0.9 million in the years ended July 31, 2019, 2018 and 2017 , respectively. Factors related to the Company’s performance share awards are as follows: Year Ended July 31, 2019 2018 2017 Weighted-average per award fair value at grant date $ 58.35 $ 45.43 $ 37.39 The table below summarizes the activity during fiscal 2019 for non-vested performance share awards: Performance Shares Weighted Average Grant Date Fair Value Non-vested at July 31, 2018 174,900 $ 40.79 Granted 100,200 58.35 Vested (101,000 ) 37.39 Canceled/forfeited — — Non-vested at July 31, 2019 174,100 52.87 As of July 31, 2019, there was $1.7 million of total unrecognized compensation expense related to non-vested performance shares granted under the Plan. This unvested expense is expected to be recognized over the remaining vesting period. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 31, 2019 | |
Retirement Benefits, Description [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Pension Plans The Company and certain of its international subsidiaries have defined benefit pension plans for many of their hourly and salaried employees. There are two types of U.S. plans. The first type of U.S. plan (Hourly Pension Plan) is a traditional defined benefit pension plan for union production employees. The second plan (Salaried Pension Plan) is for some salaried and non-union production employees that provides defined benefits pursuant to a cash balance feature whereby a participant accumulates a benefit comprised of a percentage of current salary that varies with years of service, interest credits and transition credits. The Company no longer allows entrants into the U.S. Salaried Pension Plan and the employees no longer accrue Company contribution credits under the plan. Instead, eligible employees receive a 3% annual Company retirement contribution to their 401(k) in addition to the Company’s normal 401(k) match. The non-U.S. plans generally provide pension benefits based on years of service and compensation level. Net periodic pension costs and amounts recognized in other comprehensive (income) loss for the Company’s pension plans include the following components (in millions): Year Ended July 31, 2019 2018 2017 Service cost $ 6.0 $ 8.1 $ 8.3 Interest cost 16.4 14.8 13.5 Expected return on assets (26.5 ) (26.2 ) (26.4 ) Prior service cost and transition amortization 0.6 0.3 0.6 Actuarial loss amortization 4.4 4.6 7.3 Settlement loss 2.9 3.5 — Net periodic benefit costs 3.8 5.1 3.3 Other changes recognized in other comprehensive loss (income): Net actuarial loss (gain) 29.0 (7.2 ) (21.7 ) Amortization of asset obligations (0.2 ) (0.2 ) (0.2 ) Amortization of prior service cost (0.4 ) (0.1 ) (0.4 ) Amortization of net actuarial loss (7.3 ) (8.1 ) (7.3 ) Total recognized in other comprehensive loss (income) 21.1 (15.6 ) (29.6 ) Total recognized in net periodic benefit costs and other comprehensive loss (income) $ 24.9 $ (10.5 ) $ (26.3 ) The changes in projected benefit obligations, fair value of plan assets and funded status of the Company’s pension plans for the years ended July 31, 2019 and 2018 are summarized as follows (in millions): Year Ended July 31, 2019 2018 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 488.2 $ 515.1 Service cost 6.0 8.1 Interest cost 16.4 14.8 Plan amendments 1.2 — Participant contributions 0.8 0.8 Actuarial loss (gain) 42.5 (16.9 ) Currency exchange rates (11.2 ) 0.5 Settlement (10.5 ) (17.7 ) Net transfers 1.2 — Benefits paid (14.2 ) (16.5 ) Projected benefit obligation, end of year $ 520.4 $ 488.2 Change in fair value of plan assets: Fair value of plan assets, beginning of year $ 486.3 $ 465.1 Actual return on plan assets 39.4 16.5 Company contributions 10.4 37.6 Participant contributions 0.8 0.8 Currency exchange rates (11.2 ) 0.5 Settlement (10.5 ) (17.7 ) Net transfers 1.2 — Benefits paid (14.2 ) (16.5 ) Fair value of plan assets, end of year $ 502.2 $ 486.3 Funded status: Projected benefit obligation in excess of plan assets, end of year $ (18.2 ) $ (1.9 ) Amounts recognized on the Consolidated Balance Sheets consist of: Other long-term assets $ 6.8 $ 16.2 Other current liabilities (1.5 ) (1.5 ) Other long-term liabilities (23.5 ) (16.6 ) Net recognized liability $ (18.2 ) $ (1.9 ) The net underfunded status of $18.2 million and $1.9 million at July 31, 2019 and 2018 , respectively, is recognized in the accompanying Consolidated Balance Sheets. The pension-related accumulated other comprehensive loss at July 31, 2019 and 2018 (prior to the consideration of income taxes) was $152.0 million and $130.8 million , respectively, and consisted primarily of unrecognized actuarial losses. The loss expected to be recognized in net periodic pension expense during the year ending July 31, 2020 is $6.4 million . The accumulated benefit obligation for all defined benefit pension plans was $499.1 million and $469.3 million at July 31, 2019 and 2018 , respectively. The projected benefit obligation and fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets were $190.6 million and $165.6 million , respectively, as of July 31, 2019 , and $68.4 million and $50.3 million , respectively, as of July 31, 2018 . The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets were $135.0 million , $133.2 million and $122.5 million , respectively, as of July 31, 2019 and $18.7 million , $16.9 million and $6.2 million , respectively, as of July 31, 2018 . Assumptions The weighted-average discount rate and rates of increase in future compensation levels used in determining the actuarial present value of the projected benefit obligation are as follows: Projected Benefit Obligation Year Ended July 31, Weighted average actuarial assumptions 2019 2018 All U.S. plans: Discount rate 3.54 % 4.43 % Non-U.S. plans: Discount rate 1.79 % 2.43 % Rate of compensation increase 2.69 % 2.69 % The weighted-average discount rates, expected returns on plan assets and rates of increase in future compensation levels used to determine the net periodic benefit cost are as follows: Net Periodic Benefit Cost Year Ended July 31, Weighted average actuarial assumptions 2019 2018 2017 All U.S. plans: Discount rate 4.43 % 3.94 % 3.65 % Expected return on plan assets 6.25 % 6.58 % 6.90 % Rate of compensation increase N/A N/A 2.56 % Non-U.S. plans: Discount rate 2.43 % 2.40 % 2.08 % Expected return on plan assets 4.08 % 4.19 % 3.93 % Rate of compensation increase 2.69 % 2.70 % 2.69 % Discount Rates The Company’s objective in selecting a discount rate is to select the best estimate of the rate at which the benefit obligations could be effectively settled on the measurement date, taking into account the nature and duration of the benefit obligations of the plan. In making this best estimate, the Company looks at rates of return on high-quality, fixed-income investments currently available, and expected to be available, during the period to maturity of the benefits. This process includes looking at the universe of bonds available on the measurement date with a quality rating of Aa or better. Similar appropriate benchmarks are used to determine the discount rate for the non-U.S. plans. The Company utilizes a full yield curve approach to estimate service and interest costs by applying specific spot rates along the yield curve used to determine the benefit obligation of relevant projected cash outflows. This method provides a precise measurement of service and interest costs by aligning the timing of the plans’ liability cash flows to the corresponding spot rate on the yield curve. Expected Long-Term Rate of Return To develop the expected long-term rate of return on assets assumption, the Company considers the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation for each plan. Based on portfolio performance, as of the measurement date of July 31, 2019 , the Company’s long-term rate of return for the U.S. and non-U.S. pension plans is an asset-based weighted average of 6.08% and 3.76% , respectively. The expected long-term rate of return on assets shown in the pension benefit disclosure for U.S. and non-U.S. plans is an asset-based weighted average of all plans for each category. Fair Value of Plan Assets The estimated fair value of U.S. pension plan assets and their respective levels in the fair value hierarchy at July 31, 2019 and 2018 by asset category are as follows (in millions): U.S Pension Plans Asset Category Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured Using NAV Per Share as Practical Expedient Total July 31, 2019 Cash and cash equivalents $ 3.6 $ 0.4 $ — $ — $ 4.0 Global equity securities 76.3 — — 35.8 112.1 Fixed income securities 95.2 96.7 — — 191.9 Private equity and other funds — — — 33.1 33.1 Real asset funds — — — 3.4 3.4 Total U.S. assets $ 175.1 $ 97.1 $ — $ 72.3 $ 344.5 July 31, 2018 Cash and cash equivalents $ 4.7 $ 0.3 $ — $ — $ 5.0 Global equity securities 82.4 — — 31.0 113.4 Fixed income securities 72.5 81.0 — — 153.5 Private equity and other funds — — — 53.7 53.7 Real asset funds — — — 5.3 5.3 Total U.S. assets $ 159.6 $ 81.3 $ — $ 90.0 $ 330.9 Certain investments held by the Plan as of July 31, 2019, valued at NAV, had the following unfunded commitments and/or redemption restrictions (in millions): U.S Pension Plans Asset Category Measured Using NAV Per Share as Practical Expedient Unfunded Commitments Redemption Frequency (If Currently Eligible) Redemption Notice Period July 31, 2019 Global equity securities $ 35.8 $ 1.8 Monthly, Weekly 10 - 90 days Private equity and other funds 33.1 — Quarterly, Semi-Annually 60 - 90 days Real asset funds 3.4 4.3 Not eligible N/A Total U.S. assets $ 72.3 $ 6.1 Global equity securities consists primarily of publicly traded U.S. and non-U.S. equities, mutual funds and collective investment trusts. Publicly traded equities and index funds are valued at the closing price reported in the active market in which the individual securities are traded. Fixed income securities consists primarily of investment and non-investment grade debt securities, debt securities issued by the U.S. Treasury, and exchange-traded funds. Government, corporate and other bonds and notes are valued at the closing price reported if traded on an active market or at yields currently available on comparable securities of issuers with similar credit ratings. Private equity and other funds consists primarily of equity private placement funds, private equity investments and alternative fixed income-like investments. Private equity consists of interests in partnerships that invest in U.S. and non-U.S. equity and debt securities. This may include a diversified mix of partnership interests including buyouts, restructured/distressed debt, growth equity, mezzanine/subordinated debt, real estate, special situation partnerships and venture capital investments. Alternative fixed income-like investments consist primarily of private partnership interests in hedge funds of funds. Interests in these funds are valued at the net asset value (NAV) per share, which is a practical expedient for measuring fair value and thus not classified in the fair value hierarchy. The NAV is determined by the administrator custodian of the fund based on the fair value of the underlying assets owned by the fund less its liabilities then divided by the number of units outstanding. Real assets funds consists of funds and interests in partnerships that invest in private real estate, commodities and timber investments. Interests in partnerships are valued using the NAV from the most recent partnership statement, updated for any subsequent partnership interests’ cash flows. The estimated fair values of non-U.S. pension plan assets and their respective levels in the fair value hierarchy at July 31, 2019 and 2018 by asset category are as follows (in millions): Non-U.S. Pension Plans Asset Category Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total July 31, 2019 Cash and cash equivalents $ 0.4 $ — $ — $ 0.4 Global equity securities 79.4 — — 79.4 Fixed income securities 11.9 — — 11.9 Investment funds — 35.2 — 35.2 Insurance contracts — — 30.8 30.8 Total Non-U.S. assets $ 91.7 $ 35.2 $ 30.8 $ 157.7 July 31, 2018 Cash and cash equivalents $ 0.6 $ — $ — $ 0.6 Global equity securities 78.8 — — 78.8 Fixed income securities 11.3 — — 11.3 Investment funds — 36.1 — 36.1 Insurance contracts — — 28.6 28.6 Total Non-U.S. assets $ 90.7 $ 36.1 $ 28.6 $ 155.4 Global equity securities consists of publicly traded diversified growth funds invested across a broad range of traditional and alternative asset classes that may include, but are not limited to: equities, investment grade and high yield bonds, property, private equity, infrastructure, commodities and currencies. They may invest directly or hold up to 100% of the fund in other collective investment vehicles and may use exchange traded and over-the-counter financial derivatives, such as currency forwards or futures, for both investment as well as hedging purposes. Publicly traded equities and funds are valued at the closing price reported in the active market in which the individual securities are traded. Fixed income securities consists primarily of investment grade debt securities and bond funds. Corporate bonds and notes are valued at either the yields currently available on comparable securities of issuers with similar credit ratings or valued under a discounted cash flows approach that maximizes observable inputs, such as current yields of similar instruments, but can include adjustments for certain risks that may not be observable such as credit and liquidity risks. The bond funds are traded on an active market and are valued at the closing price reported. Investment funds consists of liability driven investment funds that may hold a range of low-risk hedging instruments including but not limited to government and corporate bonds, interest rate and inflation swaps, physical inflation-linked and nominal gilts, synthetic gilts, cash and money market instruments. The investment funds are valued at the closing price reported if traded on an active market or at yields currently available on comparable securities of issuers with similar credit ratings. Insurance contracts are individual contracts whereby an insurance company offers a guaranteed minimum interest return. The Company does not have any influence on the investment decisions made by the insurer. European insurers, in general, are strictly regulated by an external control mechanism and have to invest for their guaranteed interest products within certain boundaries. Typically they have a strategic asset allocation with 80% to 90% fixed income products and 10% to 20% equity type products (including real estate). The following table summarizes the changes in the fair values of the non-U.S. pension plans’ Level 3 assets for the years ended July 31, 2019, 2018 and 2017 (in millions): Non-U.S. Pension Plans Ending balance at July 31, 2016 $ 31.8 Unrealized gains 1.2 Foreign currency exchange 1.7 Purchases 1.0 Sales (1.4 ) Ending balance at July 31, 2017 34.3 Unrealized losses (4.0 ) Foreign currency exchange 0.2 Purchases 0.5 Sales (2.4 ) Ending balance at July 31, 2018 28.6 Unrealized gains 3.5 Foreign currency exchange (1.5 ) Purchases 0.5 Sales (0.3 ) Ending balance at July 31, 2019 $ 30.8 Investment Policies and Strategies For the Company’s U.S. pension plans, the Company uses a total return investment approach to achieve a long-term return on plan assets, with what the Company believes to be a prudent level of risk for the purpose of meeting its retirement income commitments to employees. The plans’ investments are diversified to assist in managing risk. During the year ended July 31, 2019 , the Company’s asset allocation guidelines targeted an allocation as follows: Salaried Pension Plan Hourly Pension Plan Global equities 33 % 37 % Fixed income 65 % 60 % Real assets 1 % 2 % Cash and cash equivalents 1 % 1 % Total 100 % 100 % The targeted percentages are inclusive of private equity and other fund vehicles. These target allocation guidelines are determined in consultation with the Company’s investment consultant and through the use of modeling the risk/return trade-offs among asset classes utilizing assumptions about expected annual return, expected volatility/standard deviation of returns and expected correlations with other asset classes. For the Company’s non-U.S. plans, the general investment objectives are to maintain a suitably diversified portfolio of secure assets of appropriate liquidity that will generate income and capital growth to meet, together with any new contributions from members and the Company, the cost of current and future benefits. Investment policy and performance is measured and monitored on an ongoing basis by the Company’s Investment Committee through its use of an investment consultant and through quarterly investment portfolio reviews. Estimated Contributions and Future Payments The Company’s general funding policy is to make at least the minimum required contributions as required by applicable regulations, plus any additional amounts that it determines to be appropriate. The Company made required contributions of $1.4 million to its non-qualified U.S. pension plans during the year ended July 31, 2019 and estimates that it will contribute approximately $1.5 million for the year ended July 31, 2020 . The estimated minimum funding requirement for the Company’s qualified U.S. plans for the year ending July 31, 2020 is $4.4 million . In accordance with the Pension Protection Act of 2006, this contribution obligation may be met with existing credit balances that resulted from payments above the minimum obligation in prior years. The Company has sufficient credit balances to meet the minimum obligation for the plan year ended July 31, 2019 of its U.S. pension plans. During the year ended July 31, 2019 , the Company made discretionary contributions of $8.0 million to the U.S. pension plans that were designated for the plan year ended July 31, 2018. The Company made contributions of $0.9 million to its non-U.S. pension plans during the year ended July 31, 2019 and estimates that it will contribute approximately $1.1 million in the year ended July 31, 2020 based upon the local government prescribed funding requirements. Future estimates of the Company’s pension plan contributions may change significantly depending on the actual rate of return on plan assets, discount rates and regulatory requirements. The estimated future benefit payments for the Company’s U.S. and non-U.S. plans are as follows (in millions): Year Ending July 31, Estimated Future Benefit Payments 2020 $ 29.6 2021 27.5 2022 28.5 2023 27.3 2024 26.2 2025-2029 139.9 Retirement Savings and Employee Stock Ownership Plan The Company provides a contributory employee savings plan to U.S. employees that permits participants to make contributions by salary reduction pursuant to section 401(k) of the Internal Revenue Code. For eligible employees, employee contributions of up to 50% of compensation are matched at a rate equaling 100% of the first 3% contributed and 50% of the next 2% contributed. In addition, the Company contributes 3% of compensation annually for eligible employees. Total contribution expense for these plans was $23.5 million , $22.1 million and $20.1 million for the years ended July 31, 2019, 2018 and 2017 , respectively. This plan also includes shares from an Employee Stock Ownership Plan (ESOP). As of July 31, 2019 , all shares of the ESOP have been allocated to participants. Total ESOP shares are considered to be shares outstanding for diluted earnings per share calculations. Deferred Compensation and Other Benefit Plans The Company provides various deferred compensation and other benefit plans to certain executives. The deferred compensation plan allows these employees to defer the receipt of all of their bonus and other stock-related compensation and up to 75% of their salary to future periods. Other benefit plans are provided to supplement the benefits for a select group of highly compensated individuals that are reduced because of compensation limitations set by the Internal Revenue Code. The Company has recorded a liability of $5.0 million and $ 5.7 million as of July 31, 2019 and 2018 , respectively, related primarily to its deferred compensation plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of earnings before income taxes are as follows (in millions): Year Ended July 31, 2019 2018 2017 Earnings before income taxes: United States $ 127.4 $ 103.2 $ 109.8 Foreign 247.8 260.4 212.2 Total $ 375.2 $ 363.6 $ 322.0 The components of the provision for income taxes are as follows (in millions): Year Ended July 31, 2019 2018 2017 Income tax provision (benefit): Current Federal $ 21.3 $ 100.0 $ 38.9 State 4.0 5.3 4.3 Foreign 72.5 71.0 56.6 97.8 176.3 99.8 Deferred Federal 7.4 6.5 (7.7 ) State 1.4 0.2 (0.4 ) Foreign 1.4 0.3 (2.5 ) 10.2 7.0 (10.6 ) Total $ 108.0 $ 183.3 $ 89.2 The following table reconciles the U.S. statutory income tax rate with the effective income tax rate: Year Ended July 31, 2019 2018 2017 Statutory U.S. federal rate 21.0 % 26.9 % 35.0 % State income taxes 1.3 % 0.9 % 0.9 % Foreign operations 4.7 % 1.7 % (8.3 )% Global Intangible Low Tax Income (GILTI) 1.3 % N/A N/A Foreign Derived Intangible Income (FDII) (1.4 )% N/A N/A Export, manufacturing and research credits (0.8 )% (1.0 )% (1.1 )% Change in unrecognized tax benefits (0.8 )% (0.3 )% 1.0 % Tax benefits on stock-based compensation (1.6 )% (1.2 )% N/A Impact of U.S. Tax Cuts and Jobs Act 5.0 % 23.2 % N/A Other 0.1 % 0.2 % 0.2 % Effective income tax rate 28.8 % 50.4 % 27.7 % The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in millions): July 31, 2019 2018 Deferred tax assets: Accrued expenses $ 10.1 $ 13.2 Compensation and retirement plans 27.9 29.6 NOL and tax credit carryforwards 4.4 7.2 LIFO and inventory reserves 3.0 2.3 Other 4.5 3.6 Gross deferred tax assets 49.9 55.9 Valuation allowance (4.4 ) (6.2 ) Deferred tax assets, net of valuation allowance 45.5 49.7 Deferred tax liabilities: Depreciation and amortization (43.2 ) (33.6 ) Other (1.4 ) (1.1 ) Deferred tax liabilities (44.6 ) (34.7 ) Net deferred tax asset $ 0.9 $ 15.0 On December 22, 2017, the U.S. Tax Cuts and Jobs Act (TCJA) was enacted into law. The TCJA significantly reforms the Internal Revenue Code of 1986, including but not limited to reducing the U.S. federal corporate income tax rate from 35 percent to 21 percent and moving toward a territorial tax system with a one-time transition tax imposed on previously unremitted foreign earnings and profits. TCJA also added many new provisions including changes to bonus depreciation, the deduction for executive compensation and interest expense, a tax on Global Intangible Low-Taxed Income (GILTI), the base-erosion anti-abuse tax (BEAT) and a deduction for foreign-derived intangible income (FDII). The most significant impacts of the enacted legislation for the Company include lowering of the U.S. federal corporate income tax rate, the one-time transition tax imposed on deemed repatriated earnings in fiscal year 2018, and the GILTI and FDII provisions. The U.S. federal tax rate reduction was effective January 1, 2018, and thus the Company’s U.S. federal statutory tax rate was a rate of 21.0 percent for fiscal 2019 and a blended rate 26.9 percent for fiscal 2018. The changes to the interest expense deduction and BEAT did not have an impact on the Company’s fiscal 2019 income tax provision. Staff Accounting Bulletin 118 (SAB 118) includes additional guidance allowing companies to use a measurement period that should not extend beyond one year from the TCJA enactment date to account for the impacts of the law in their financial statements. The Company completed its accounting for the income tax effects of the TCJA in accordance with SAB 118 during the second quarter of fiscal 2019. As a result, no material measurement period adjustments were made during the six months ended January 31, 2019 from those amounts recorded and disclosed in the Company’s Annual Report on Form 10-K for the year ended July 31, 2018. The Company considers its provisional accounting for the effects of the TCJA as being complete. The Company’s finalized discrete tax charge for the one-time transition tax on deemed repatriated earnings of its non-U.S. subsidiaries is $111.9 million . For the year ended July 31, 2018, the Company recorded a net discrete charge for this tax of $94.5 million . For the year ended July 31, 2019, the Company recorded additional one-time transition tax charges of $17.2 million due to the issuance of final regulations by the U.S. Department of the Treasury and the Internal Revenue Service, and of $0.3 million in accordance with the SAB 118 measurement period. The transition tax is payable over an eight-year period, and the portion not due within 12 months of July 31, 2019, which the amount is $93.8 million , is classified within non-current income taxes payable in the Consolidated Balance Sheet as of July 31, 2019. Additionally, for the year ended July 31, 2019 the Company recorded a net tax charge of $1.2 million related to TCJA-based global cash optimization initiatives, consisting of a tax benefit of $2.2 million related to actions taken in fiscal 2019 and a tax charge of $3.4 million due to the issuance of final regulations by the U.S. Department of the Treasury and the Internal Revenue Service. The Company has made the accounting policy election to treat taxes related to the GILTI provision of the TCJA as a current period expense when incurred. The TCJA moved toward a territorial tax system through the provision of a 100% dividends received deduction for the foreign-source portions of dividends received from controlled foreign subsidiaries. As a result, the Company re-evaluated its indefinite reinvestment assertions with respect to unremitted earnings for certain of its foreign subsidiaries for the year ended July 31, 2018 and concluded that the majority of these earnings are no longer subject to the indefinite reinvestment assertion. As of July 31, 2019, the total undistributed earnings of the Company’s non-U.S. subsidiaries is approximately $1.2 billion , of which approximately $930 million are not considered indefinitely reinvested. The Company has recognized a tax charge of $6.4 million in the current year on these undistributed earnings primarily for foreign withholding taxes on current year earnings. We previously accrued the transition tax and foreign withholding taxes on the prior year earnings not considered indefinitely reinvested in fiscal 2018. The remaining $280 million of earnings are considered indefinitely reinvested, and it is not practicable to estimate, within any reasonable range, the additional taxes that may be payable on the potential distribution of the portion of the undistributed earnings considered indefinitely reinvested. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions): Year Ended July 31, 2019 2018 2017 Gross unrecognized tax benefits at beginning of fiscal year $ 18.5 $ 18.8 $ 15.7 Additions for tax positions of the current year 2.5 4.4 3.9 Additions for tax positions of prior years 0.7 0.2 0.1 Reductions for tax positions of prior years (4.9 ) (3.1 ) (0.1 ) Settlements — (0.4 ) 0.3 Reductions due to lapse of applicable statute of limitations (1.3 ) (1.4 ) (1.1 ) Gross unrecognized tax benefits at end of fiscal year $ 15.5 $ 18.5 $ 18.8 The Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. During the year ended July 31, 2019, the Company recognized interest expense, net of tax benefit, of approximately $0.5 million . At July 31, 2019 and 2018, accrued interest and penalties on a gross basis were $1.6 million and $1.7 million , respectively. If the Company were to prevail on all unrecognized tax benefits recorded, substantially all of the unrecognized tax benefits would benefit the effective tax rate. With an average statute of limitations of approximately five years, up to $1.7 million of the unrecognized tax benefits could potentially expire in the next 12-month period, unless extended by an audit. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before 2009. On May 29, 2018, as part of its examination of fiscal years 2015 and 2016, the IRS proposed an adjustment related to the Company’s foreign legal entity restructuring which was completed in fiscal 2015. The Company protested the adjustment, and the issue was eventually resolved with no adjustment during the current year at the IRS Appellate level. Thus, the Company’s U.S. federal income tax returns through 2016 are no longer subject to IRS examination. The Company believes that it is remote that any adjustment necessary to the reserve for income taxes over the next 12-month period will be material. However, it is possible the ultimate resolution of audits or disputes may result in a material change to our reserve for income taxes, although the quantification of such potential adjustments cannot be made at this time. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements of financial instruments are reported in one of three levels based on the lowest level of significant input used as follows: Level 1 Inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. Level 3 Inputs to the fair value measurement are unobservable inputs or valuation techniques. At July 31, 2019 and 2018 , the carrying values of cash and cash equivalents, accounts receivables, short-term borrowings and trade accounts payable approximate fair value because of the short-term nature of these instruments. As of July 31, 2019 , the estimated fair value of long-term debt with fixed interest rates was $281.5 million compared to its carrying value of $275.0 million . As of July 31, 2018 , the estimated fair value of long-term debt with fixed interest rates was $263.3 million compared to its carrying value of $275.0 million . The fair value is estimated by discounting the projected cash flows using the rate that similar amounts of debt could currently be borrowed. Long-term debt would be classified as Level 2 in the fair value hierarchy. The carrying values of long-term debt with variable interest rates approximate fair value. The fair values of the Company’s financial assets and liabilities listed below reflect the amounts that would be received to sell the assets or paid to transfer the liabilities in an orderly transaction between market participants at the measurement date (exit price). The fair values are based on inputs other than quoted prices that are observable for the asset or liability. These inputs include foreign currency exchange rates and interest rates. The financial assets and liabilities are primarily valued using standard calculations and models that use as their basis readily observable market parameters. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and currency rates. Derivative Fair Value Measurements The Company enters into derivative instruments, including forward foreign currency exchange contracts and net investment hedges, to manage risk in connection with changes in foreign currency. The Company only enters into derivative instruments with counterparties who have highly rated credit. The Company does not enter into derivative contracts for trading or speculative purposes. Forward Foreign Currency Exchange Contracts The Company uses forward currency exchange contracts to manage exposure to fluctuations in foreign currency. The Company enters into certain purchase commitments with foreign suppliers based on the value of its purchasing subsidiaries’ local currency relative to the currency requirement of the supplier on the date of the commitment. The Company also sells into foreign countries based on the value of purchaser’s local currency. The Company mitigates risk through using forward currency contracts that generally mature in 12 months or less, which is consistent with the related purchases and sales. Contracts that qualify for hedge accounting are designated as cash flow hedges. Net Investment Hedges The Company uses fixed-to-fixed cross-currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. In July 2019, the Company executed a fixed-to-fixed cross-currency swap in which the Company will pay Euros and receive U.S. Dollars on a notional amount of €50.0 million which matures in July 2029. The Company has elected the spot method of designating this contracts. The Company determines the fair values of its derivatives based on valuation models which project future cash flows and discount the future amounts to a present value using market based observable inputs including foreign currency rates, interest rate curves, futures and basis spreads, as applicable. The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of July 31, 2019 and July 31, 2018 (in millions): Fair Values Significant Other Observable Inputs (Level 2) Notional Amounts Assets Liabilities (1) July 31, July 31, July 31, 2019 2018 2019 2018 2019 2018 Forward foreign currency exchange contracts $ 28.2 $ 19.3 $ 1.6 $ 0.7 (2) $ (1.8 ) $ (1.0 ) Net investment hedge 55.8 — 1.1 — (3) (1.9 ) — Total $ 84.0 $ 19.3 $ 2.7 $ 0.7 $ (3.7 ) $ (1.0 ) (1) Recorded within other long-term liabilities in the Company’s audited consolidated balance sheets. (2) Recorded within prepaid expenses and other current assets in the Company’s audited consolidated balance sheets. (3) Recorded within other assets in the Company’s audited consolidated balance sheets. Changes in the fair value of the Company’s forward foreign currency exchange contracts are recorded in equity as a component of accumulated other comprehensive income (loss), and are reclassified from accumulated other comprehensive income (loss) into earnings when the items underlying the hedged transactions are recognized into earnings, as a component of cost of sales within the Company’s consolidated statements of operations and comprehensive income (loss). The net gain or loss on net investment hedges are reported within foreign currency translation gains and losses as a component of accumulated other comprehensive income (loss) on the Company’s consolidated balance sheets. The interest earned is reclassified out of accumulated other comprehensive income (loss) and into other income, net. Credit Risk Related Contingent Features Contract provisions may require the posting of collateral or settlement of the contracts for various reasons, including if the Company’s credit ratings are downgraded below its investment grade credit rating by any of the major credit agencies or for cross default contractual provisions if there was a failure under other financing arrangements related to payment terms or covenants. As of July 31, 2019 and 2018, no collateral has been posted. Counterparty Credit Risk There is risk that counterparties to derivative contracts will fail to meet their contractual obligations. In order to mitigate counterparty credit risk, the Company only enters into contracts with carefully selected financial institutions based upon their credit ratings and certain other financial factors. The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions): Pre-tax Gains (Losses) Recognized in Accumulated Other Comprehensive income (loss): Year Ended July 31, 2019 2018 2017 Forward foreign currency exchange contracts $ 0.2 $ 3.2 $ (2.4 ) Net investment hedge $ (0.8 ) $ — $ — Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss): Year Ended July 31, 2019 2018 2017 Forward foreign currency exchange contracts $ 0.1 $ 0.2 $ (1.4 ) Net investment hedge $ — $ — $ — The Company expects that substantially all of the amounts recorded in accumulated other comprehensive income (loss) for its forward foreign currency exchange contracts will be reclassified into earnings during the next 12 months, based upon the timing of inventory purchases and turnover as well as sales. See also Note 15. The Company holds equity method investments, which are classified in other long-term assets in the accompanying Consolidated Balance Sheets. The aggregate carrying amount of these investments was $23.0 million and $21.7 million as of July 31, 2019 and 2018 , respectively. These equity method investments are measured at fair value on a nonrecurring basis. The fair value of the Company’s equity method investments has not been estimated as there have been no identified events or changes in circumstance that would have had an adverse impact on the value of these investments. In the event that these investments were required to be measured, these investments would fall within Level 3 of the fair value hierarchy, due to the use of significant unobservable inputs to determine fair value, as the investments are in privately-held entities. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jul. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Treasury Stock The Company’s Board of Directors authorized the repurchase of up to 13.0 million shares of common stock under the Company’s stock repurchase plan dated May 31, 2019, replacing the Company’s previous stock repurchase plan dated May 29, 2015. This repurchase authorization is effective until terminated by the Board of Directors . As of July 31, 2019 , the Company had remaining authorization to repurchase 12.8 million shares under this plan. During the year ended July 31, 2019 , the Company repurchased 2.6 million shares for $129.2 million . During the year ended July 31, 2018 , the Company repurchased 2.6 million shares for $122.0 million . Treasury stock share activity for the years ended July 31, 2019 and 2018 is summarized as follows: Year Ended July 31, 2019 2018 Beginning balance 22,871,145 21,037,353 Stock repurchases 2,636,554 2,642,690 Net issuance upon exercise of stock options (1,057,604 ) (723,677 ) Issuance under compensation plans (104,483 ) (78,304 ) Other activity (21,129 ) (6,917 ) Ending balance 24,324,483 22,871,145 On July 26, 2019, the Company’s Board of Directors declared a cash dividend in the amount of 21.0 cents per common share, payable August 29, 2019, to shareholders of record as of August 13, 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Jul. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component for the years ended July 31, 2019 and 2018 are as follows (in millions): Foreign currency translation adjustment Pension benefits Derivative financial instruments Total Balance as of July 31, 2018, net of tax $ (66.1 ) $ (82.9 ) $ (0.8 ) $ (149.8 ) Other comprehensive (loss) income before reclassifications and tax (26.6 ) (16.3 ) (0.6 ) (43.5 ) Tax benefit — 4.1 0.1 4.2 Other comprehensive (loss) income before reclassifications, net of tax (26.6 ) (12.2 ) (0.5 ) (39.3 ) Reclassifications, before tax — (4.8 ) 0.1 (4.7 ) Tax benefit — 0.9 — 0.9 Reclassifications, net of tax — (3.9 ) (2) 0.1 (1) (3.8 ) Other comprehensive (loss) income, net of tax (26.6 ) (16.1 ) (0.4 ) (43.1 ) Balance as of July 31, 2019, net of tax $ (92.7 ) $ (99.0 ) $ (1.2 ) $ (192.9 ) Balance as of July 31, 2017, net of tax $ (58.8 ) $ (95.1 ) $ (3.1 ) $ (157.0 ) Other comprehensive (loss) income before reclassifications and tax (7.3 ) 11.4 3.2 7.3 Tax expense — (3.0 ) (1.1 ) (4.1 ) Other comprehensive (loss) income before reclassifications, net of tax (7.3 ) 8.4 2.1 3.2 Reclassifications, before tax — 5.5 0.2 5.7 Tax expense — (1.7 ) — (1.7 ) Reclassifications, net of tax — 3.8 (2) 0.2 (1) 4.0 Other comprehensive (loss) income, net of tax (7.3 ) 12.2 2.3 7.2 Balance as of July 31, 2018, net of tax $ (66.1 ) $ (82.9 ) $ (0.8 ) $ (149.8 ) (1) Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net (see Note 1). (2) Primarily includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 11) that were reclassified from accumulated other comprehensive loss to operating expenses or cost of sales. |
Guarantees
Guarantees | 12 Months Ended |
Jul. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Guarantees | Guarantees The Company and Caterpillar Inc. equally own the shares of Advanced Filtration Systems Inc. (AFSI), an unconsolidated joint venture, and guarantee certain debt of the joint venture. As of July 31, 2019 and 2018 , AFSI had $38.8 million and $35.5 million , respectively, of outstanding debt, of which the Company guarantees half. In addition, during the years ended July 31, 2019, 2018 and 2017 , the Company recorded (losses) earnings from this equity method investment of $(0.3) million , $1.3 million and $2.1 million , respectively, and royalty income of $6.5 million , $7.0 million and $5.9 million , respectively. At July 31, 2019 and 2018 , the Company had a contingent liability for standby letters of credit totaling $11.0 million and $8.2 million , respectively, that have been issued and are outstanding. The letters of credit guarantee payment to third parties in the event the Company is in breach of contract terms as detailed in each letter of credit. At July 31, 2019 and 2018 , there were no amounts drawn upon these letters of credit. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases The Company enters into operating leases primarily for office and warehouse facilities, production and non-production equipment, automobiles and computer equipment. Total expense recorded under operating leases for years ended July 31, 2019, 2018 and 2017 , was $30.8 million , $35.2 million and $28.7 million , respectively. As of July 31, 2019 , the estimated future minimum lease payments under operating leases are as follows (in millions): Year Ending July 31, Operating Leases 2020 $ 24.0 2021 17.5 2022 11.3 2023 6.4 2024 4.6 Thereafter 19.0 Total future minimum lease payments $ 82.8 Litigation The Company records provisions with respect to identified claims or lawsuits when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and lawsuits are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the recorded estimated liability in its Consolidated Financial Statements is adequate in light of the probable and estimable outcomes. The recorded liabilities were not material to the Company’s results of operations, liquidity or financial position and the Company believes it is remote that the settlement of any of the currently identified claims or litigation will be materially in excess of what is accrued. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Jul. 31, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | Segment Reporting The Company has identified two reportable segments: Engine Products and Industrial Products. Segment determination is based on the internal organization structure, management of operations and performance evaluation by management and the Company’s Board of Directors. The Engine Products segment sells to OEMs in the construction, mining, agriculture, aerospace, defense and truck end markets and to independent distributors, OEM dealer networks, private label accounts and large equipment fleets. Products include replacement filters for both air and liquid filtration applications, air filtration systems, liquid filtration systems for fuel, lube and hydraulic applications, and exhaust and emissions systems and sensors, indicators and monitoring systems. The Industrial Products segment sells to various dealers, distributors, OEMs of gas-fired turbines and OEMs and end users requiring clean air filtration solutions and replacement filters. Products include dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines, polytetrafluoroethylene (PTFE) membrane-based products and specialized air and gas filtration systems for applications including hard disk drives and semi-conductor manufacturing and sensors, indicators and monitoring systems. Corporate and Unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest expense. The Company has manufacturing facilities that serve both of its reportable segments. As such, asset and capital expenditure information by reportable segment has not been provided, since the Company does not produce or utilize such information internally. In addition, although depreciation and amortization expense is a component of each reportable segment’s operating results, it is not discretely identifiable. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the earnings before income taxes and other financial information shown below. Segment detail is summarized as follows (in millions): Engine Products Industrial Products Corporate and Unallocated Total Company Fiscal 2019 Net sales $ 1,926.0 $ 918.9 $ — $ 2,844.9 Equity earnings in unconsolidated affiliates 2.1 0.1 — 2.2 Earnings (loss) before income taxes 254.6 140.1 (19.5 ) 375.2 Equity investments in unconsolidated affiliates 19.0 4.0 — 23.0 Fiscal 2018 Net sales $ 1,849.0 $ 885.2 $ — $ 2,734.2 Equity earnings in unconsolidated affiliates 3.7 (0.1 ) — 3.6 Earnings (loss) before income taxes 258.8 135.5 (30.7 ) 363.6 Equity investments in unconsolidated affiliates 17.8 3.9 — 21.7 Fiscal 2017 Net sales $ 1,553.3 $ 818.6 $ — $ 2,371.9 Equity earnings in unconsolidated affiliates 4.4 0.6 — 5.0 Earnings (loss) before income taxes 218.4 128.5 (24.9 ) 322.0 Equity investments in unconsolidated affiliates 14.8 4.2 — 19.0 Net sales by product group within the Engine Products segment and Industrial Products segment is summarized as follows (in millions): Year Ended July 31, 2019 2018 2017 Engine Products segment: Off-Road $ 315.1 $ 327.4 $ 252.1 On-Road 179.8 154.2 110.7 Aftermarket 1,315.3 1,261.9 1,086.2 Aerospace and Defense 115.8 105.5 104.3 Total Engine Products segment 1,926.0 1,849.0 1,553.3 Industrial Products segment: Industrial Filtration Solutions 641.8 594.3 533.2 Gas Turbine Systems 106.3 115.5 122.9 Special Applications 170.8 175.4 162.5 Total Industrial Products segment 918.9 885.2 818.6 Total net sales $ 2,844.9 $ 2,734.2 $ 2,371.9 Net sales by origination and property, plant and equipment by geographic region are summarized as follows (in millions): Net Sales (1) Property, Plant and Equipment, Net Fiscal 2019 United States $ 1,192.6 $ 231.0 Europe, Middle East and Africa 826.8 199.1 Asia Pacific 597.9 50.2 Latin America 227.6 108.6 Total $ 2,844.9 $ 588.9 Fiscal 2018 United States $ 1,120.8 $ 188.1 Europe, Middle East and Africa 791.5 181.1 Asia Pacific 599.2 53.4 Latin America 222.7 86.7 Total $ 2,734.2 $ 509.3 Fiscal 2017 United States $ 990.4 $ 193.5 Europe, Middle East and Africa 679.1 170.0 Asia Pacific 500.5 55.3 Latin America 201.9 65.8 Total $ 2,371.9 $ 484.6 (1) Net sales by origination is based on the country of the Company’s legal entity where the customer’s order was placed. Concentrations There were no customers that accounted for over 10% of net sales during the years ended July 31, 2019, 2018 or 2017 . There were no customers that accounted for over 10% of gross accounts receivable at July 31, 2019 or July 31, 2018 . |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Jul. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) Unaudited consolidated quarterly financial information for the years ended July 31, 2019 and 2018 is as follows (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2019 Net sales $ 701.4 $ 703.7 $ 712.8 $ 726.9 Gross profit 238.4 225.4 240.7 243.8 Net earnings 73.8 60.1 75.2 58.0 Net earnings per share – basic 0.57 0.47 0.59 0.45 Net earnings per share – diluted 0.56 0.46 0.58 0.45 Dividends paid per share 0.19 0.19 0.19 0.21 Fiscal 2018 Net sales $ 644.8 $ 664.7 $ 700.0 $ 724.7 Gross profit 224.3 218.9 239.8 252.8 Net earnings (loss) 60.9 (52.9 ) 69.9 102.4 Net earnings (loss) per share – basic 0.47 (0.40 ) 0.54 0.79 Net earnings (loss) per share – diluted 0.46 (0.40 ) 0.53 0.78 Dividends paid per share 0.18 0.18 0.18 0.19 Note: Amounts may not foot due to rounding. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of Donaldson Company, Inc. and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s three joint ventures are not majority-owned and are accounted for under the equity method. Certain reclassifications to previously reported financial information have been made to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of the Consolidated Financial Statements in conformity with generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Foreign Currency Translation | Foreign Currency Translation For most foreign operations, local currencies are considered the functional currency. Assets and liabilities of non-U.S. dollar functional currency entities are translated to U.S. dollars at year-end exchange rates and the resulting gains and losses arising from the translation of net assets located outside the U.S. are recorded as a cumulative translation adjustment, a component of accumulated other comprehensive loss in the Consolidated Balance Sheets. Elements of the Consolidated Statements of Earnings are translated at average exchange rates in effect during the year. |
Cash Equivalents | Cash Equivalents The Company considers all highly liquid temporary investments with an original maturity of three months or less to be cash equivalents. Cash equivalents are carried at cost that approximates market value. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivables are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is the Company’s best estimate of the amount of credit losses in its existing accounts receivable. The Company determines the allowance based on historical write-off experience, regional economic data and evaluation of specific customer accounts for risk of loss. The Company reviews its allowance for doubtful accounts monthly. Past due balances over 90 days and over a specified amount are reviewed individually for collectability. All other balances are reviewed on a pooled basis by reporting unit and geographic region. Account balances are reserved when the Company determines it is probable the receivable will not be recovered. |
Inventories | Inventories Inventories are stated at the lower of cost and net realizable value. U.S. inventories are valued using the last-in, first-out (LIFO) method while the non-U.S. inventories are valued using the first-in, first-out (FIFO) method. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Additions, improvements or major renewals are capitalized while expenditures that do not enhance or extend the asset’s useful life are charged to expense as incurred. Depreciation is computed using the straight-line method. |
Internal-Use Software | Internal-Use Software The Company capitalizes direct costs of materials and services used in the development and purchase of internal-use software. Amounts capitalized are amortized on a straight-line basis over a period of five to seven years and are reported as a component of property, plant and equipment. Cloud Computing Arrangements The Company capitalizes certain costs incurred during the application development stage of implementation of internal use software in cloud computing arrangements. Amounts capitalized are on a straight-line basis over a period of ten years and are reported as a component of other long-term assets. |
Goodwill and Other Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations under the purchase method of accounting. Intangible assets, comprised of customer relationships, patents, trademarks and technology, are amortized on a straight-line basis over their estimated useful lives of five to twenty years. Goodwill is assessed for impairment annually or if an event occurs or circumstances change that would indicate the carrying amount may be impaired. The impairment assessment for goodwill is done at a reporting unit level. Reporting units are one level below the operating segment level but can be combined when reporting units within the same operating segment have similar economic characteristics. An impairment loss would be recognized when the carrying amount of the reporting unit’s net assets exceeds the estimated fair value of the reporting unit. |
Recoverability of Long-Lived Assets | Recoverability of Long-Lived Assets The Company reviews its long-lived assets, including identifiable intangibles, for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If impairment indicators are present and the estimated future undiscounted cash flows are less than the carrying value of the assets, the carrying value is reduced to the fair market value. |
Income Taxes | Income Taxes The provision for income taxes is computed based on the pretax income reported for financial statement purposes. Deferred tax assets and liabilities are recognized for the expected future tax consequences attributed to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income in the years in which those temporary differences are anticipated to reverse. Valuation allowances are recorded to reduce deferred tax assets when it is more-likely-than-not that a tax benefit will not be realized. The Company maintains a reserve for uncertain tax benefits. Benefits of tax return positions are recognized in the financial statements when the position is “more-likely-than-not” to be sustained by the taxing authorities based solely on the technical merits of the position. If the recognition threshold is met, the tax benefit is measured and recognized as the largest amount of tax benefit that in the Company’s judgment is greater than 50% likely to be realized. |
Treasury Stock | Treasury Stock Repurchased common stock is stated at cost (determined on an average cost basis) and is presented as a reduction of shareholders’ equity. |
Research and Development Expense | Research and Development Expense Research and development expenses include basic scientific research and the application of scientific advances to the development of new and improved products and their uses and are charged against earnings in the year incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company offers stock-based employee compensation plans, which are more fully described in Note 10. Stock-based employee compensation expense is recognized using the fair-value method for all awards. |
Revenue Recognition | Revenue Recognition Revenue is measured as the amount of consideration the Company expects to receive in exchange for the fulfillment of performance obligations. The transaction price of a contract could be reduced by variable consideration including product refunds, returns, volume rebates and discounts in the determination of net sales. The Company primarily relies on historical experience and anticipated future performance to estimate the variable consideration. Revenue is recognized to the extent that it is probable that a significant reversal of revenue will not occur when outstanding contingencies are resolved. The Company also accounts for amounts billed to customers for reimbursement of shipping and handling as fulfillment costs by recording these amounts as revenue and accruing the costs when the related revenue is recognized. For most customer contracts, the Company recognizes revenue at a point in time when control of the goods or services is transferred to the customer. For product sales, control is typically deemed to have transferred in accordance with the shipping terms, either at the time of shipment from the plants or distribution centers or the time of delivery to the customers. Revenue is recognized for services upon completion of those services. Due to the customized nature of some of the Company’s products, together with contractual provisions in certain customer contracts that provide the Company with an enforceable right to payment of the transaction price for performance completed to date, revenue is recognized for these contracts over time. For these contracts, the Company recognizes revenue on products by an output measure of production, which fairly depicts the amount of revenue the Company is entitled to. The timing of revenue recognized from these products is slightly accelerated compared to revenue recognized at the point in time of shipment or delivery. Incremental costs of obtaining a contract with a customer and other costs to fulfill a contract are required to be capitalized unless the Company elects to expense contract costs with periods less than a year. The Company has elected to expense these costs of obtaining a contract as incurred when the related contract period is less than one year. The Company does not pay upfront sales commissions on contracts when the related contract period is greater than one year, thus has not capitalized any amounts as of July 31, 2019 , see Note 6. |
Product Warranties | Product Warranties The Company provides for estimated warranty expense at the time of sale and accrues for specific items at the time their existence is known and the amounts are determinable. The Company estimates warranty expense using quantitative measures based on historical warranty claim experience and evaluation of specific customer warranty issues. |
Forward Foreign Currency Contracts and Net Investment Hedges | Forward Foreign Currency Contracts The Company uses forward currency exchange contracts to manage exposure to fluctuations in foreign currency. The Company enters into certain purchase commitments with foreign suppliers based on the value of its purchasing subsidiaries’ local currency relative to the currency requirement of the supplier on the date of the commitment. The Company also sells into foreign countries based on the value of the purchaser’s local currency. The Company mitigates risk through using forward currency contracts that generally mature in 12 months or less, which is consistent with the related purchases and sales. Contracts that qualify for hedge accounting are designated as cash flow hedges. See Note 13. Net Investment Hedges The Company uses fixed-to-fixed cross currency swap agreements to hedge its exposure to adverse foreign currency exchange rate movements for its operations in Europe. |
New Accounting Standards Recently Adopted | New Accounting Standards Recently Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606), which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Additionally, qualitative and quantitative disclosures are required about customer contracts, significant judgments and changes in judgments and assets recognized from the costs to obtain or fulfill a contract. In 2016, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12 and ASU 2016-20 to clarify, among other things, the implementation guidance related to principal versus agent considerations, identifying performance obligations and accounting for licenses of intellectual property. This accounting guidance was effective for the Company beginning in the first quarter of fiscal 2019. The standard was adopted using the modified retrospective method, applying the guidance to those contracts which were not completed as of July 31, 2018, with the cumulative effect of adoption recognized during the first quarter. Refer to Note 6 for the impact of the adoption of this new standard. In January 2017, the FASB issued ASU 2017-01, Business Combinations: Clarifying the Definition of a Business (ASU 2017-01). The new guidance provides a more robust framework to use in determining when a set of assets and activities is a business. The amendments provide more consistency in applying the guidance, reduce the costs of application and make the definition of a business more operable. ASU 2017-01 was effective for the Company beginning in the first quarter of fiscal 2019. The Company adopted ASU 2017-01 in the first quarter of fiscal 2019 and it did not have a material impact on its Consolidated Financial Statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) (ASU 2017-07). The new guidance requires employers to disaggregate and present separately the current service cost component from the other components of net benefit cost within the consolidated statement of earnings. ASU 2017-07 was effective for the Company beginning in the first quarter of fiscal 2019. The Company adopted ASU 2017-07 in the first quarter of fiscal 2019 using the retrospective method. This resulted in a reclassification of net benefit costs in the Consolidated Statements of Earnings, with a decrease in other income, net of $3.0 million and $5.0 million for the years ended July 31, 2018 and 2017, respectively, offset in selling, general and administrative and cost of goods sold. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities (ASU 2017-12), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and make certain targeted improvements to simplify the application of the hedge accounting guidance. The guidance expands the ability to hedge non-financial and financial risk components, reduces complexity in fair value hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness and eases certain hedge effectiveness assessment requirements. ASU 2017-12 is effective for the Company beginning in the first quarter of fiscal 2020, and early adoption is permitted. The Company adopted ASU 2017-12 in the first quarter of fiscal 2019 and it did not have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued ASU 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (ASU 2018-15). The amendments in this update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The amendments in this update are effective for interim and annual periods for the Company beginning in the first quarter of fiscal 2021, with early adoption permitted. The amendments in this update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted ASU 2018-15, on a prospective basis, in the third quarter of fiscal 2019 and it did not have a material impact on its Consolidated Financial Statements. New Accounting Standards Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02), which requires lessees to recognize right-of-use assets and lease liabilities for substantially all leases. This accounting guidance is effective for the Company beginning in the first quarter of fiscal 2020 on a modified retrospective basis. The Company will prospectively adopt ASU 2016-02 in the first quarter of fiscal 2020, recognizing new right of use assets and lease liabilities for all operating leases on its Consolidated Balance Sheets, with the exception of leases with a noncancelable term of 12 months or less. Upon adoption, the Company estimates both assets and liabilities on its Consolidated Balance Sheets will increase by approximately $65 million to $75 million , which includes the effect of discounting. Changes in the Company’s lease population may impact this estimate. The Company will expand its consolidated financial statement disclosures upon adoption of this standard. In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (ASU 2016-13). In November 2018, the FASB issued update ASU 2018-19 that clarifies the scope of the standard in the amendments in ASU 2016-13. This guidance introduces a new model for recognizing credit losses on financial instruments based on an estimate of current expected credit losses. Financial instruments impacted include accounts receivable, trade receivables, other financial assets measured at amortized cost and other off-balance sheet credit exposures. The new guidance is effective for the Company beginning in the first quarter of fiscal 2021, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-13 on its Consolidated Financial Statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (ASU 2018-02). The guidance allows a company to elect to reclassify from accumulated other comprehensive income (AOCI) to retained earnings the stranded tax effects from the adoption of the newly enacted federal corporate tax rate as a result of the U.S. Tax Cuts and Jobs Act. The amount of the reclassification is calculated as the difference between the amount initially charged to other comprehensive income (OCI) at the previously enacted tax rate that remains in AOCI and the amount that would have been charged using the newly enacted tax rate, excluding any valuation allowance previously charged to income. The new guidance is effective for the Company beginning in the first quarter of fiscal 2020, and early adoption is permitted. The Company is evaluating the impact of the adoption of ASU 2018-02 on its Consolidated Financial Statements. In April 2019, the FASB issues ASU 2019-04, Codification Improvements to Topics 326, Financial Instruments - Credit Losses, Topic 815 Derivatives and Hedging and Topic 825, Financial Instruments (ASU 2019-04). This guidance clarifies areas of guidance related to the recently issued standards on credit losses (Topic 326), derivatives and hedging (Topic 815), and recognition and measurement of financial instruments (Topic 825). The new guidance is effective for the Company beginning in the first quarter of fiscal 2021. The Company is evaluating the impact of the adoption of ASU 2019-04 on its Consolidated Financial Statements. |
Earnings Per Share | The Company’s basic net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares. The Company’s diluted net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents related to stock options and stock incentive plans. Certain outstanding options are excluded from the diluted net earnings per share calculations because their exercise prices are greater than the average market price of the Company’s common stock during those periods. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Acquired Assets and Liabilities Assumed | The fair values assigned to the acquired assets and liabilities assumed of BOFA were as follows (in millions): Assets: Net tangible assets $ 12.2 Customer relationships 39.8 Trademarks and technology 6.8 Goodwill 72.9 Assets 131.7 Liabilities: Deferred tax liabilities 8.2 Assumed debt 14.4 Liabilities 22.6 Total fair value 109.1 Company’s initial net consideration paid 96.0 Company’s initial non-controlling interest $ 13.1 |
Schedule of Business Acquisitions | The Company’s acquisition of an additional 3% of the shares in the fourth quarter of 2019, had the following impact (in millions): Company’s initial non-controlling interest $ 13.1 Purchase of additional 3% of fair value 3.1 Company’s non-controlling interest as of July 31, 2019 $ 10.0 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of inventory | The components of net inventories are as follows (in millions): July 31, 2019 2018 Raw materials $ 114.7 $ 128.7 Work in process 33.0 27.4 Finished products 185.1 178.0 Inventories, net $ 332.8 $ 334.1 |
Components of property, plant and equipment | The components of net property, plant and equipment are as follows (in millions): July 31, 2019 2018 Land $ 24.2 $ 22.8 Buildings 325.3 310.8 Machinery and equipment 813.5 769.1 Computer software 142.8 132.6 Construction in progress 114.3 64.4 Less: accumulated depreciation (831.2 ) (790.4 ) Net property, plant and equipment $ 588.9 $ 509.3 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of information necessary to calculate basic and diluted earnings per share | The following table presents the information necessary to calculate basic and diluted earnings per share (in millions, except per share amounts): Year Ended July 31, 2019 2018 2017 Net earnings for basic and diluted earnings per share computation $ 267.2 $ 180.3 $ 232.8 Weighted average common shares outstanding: Weighted average common shares – basic 128.3 130.3 132.6 Dilutive impact of share-based awards 2.0 1.9 1.5 Weighted average common shares – diluted 130.3 132.2 134.1 Net earnings per share – basic $ 2.08 $ 1.38 $ 1.76 Net earnings per share – diluted $ 2.05 $ 1.36 $ 1.74 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of reconciliation of goodwill | The following is a reconciliation of goodwill for the years ended July 31, 2019 and 2018 (in millions): Engine Products Industrial Products Total July 31, 2017 $ 84.3 $ 153.8 $ 238.1 Goodwill acquired 0.6 — 0.6 Currency translation — (0.3 ) (0.3 ) July 31, 2018 84.9 153.5 238.4 Goodwill acquired — 72.9 72.9 Currency translation (0.4 ) (7.8 ) (8.2 ) July 31, 2019 $ 84.5 $ 218.6 $ 303.1 |
Schedule of reconciliation of intangibles | The following table summarizes the net intangible assets for the years ended July 31, 2019 and 2018 (in millions): July 31, 2019 July 31, 2018 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Customer relationships 10.0 $ 101.5 $ (43.3 ) $ 63.0 $ (35.7 ) Patents, trademarks and technology 6.2 22.3 (9.6 ) 43.7 (35.4 ) Total other intangible assets, net $ 123.8 $ (52.9 ) $ 106.7 $ (71.1 ) |
Schedule of expected amortization expense | Expected amortization expense relating to existing intangible assets is as follows (in millions): Year Ending July 31, Amount 2020 $ 8.0 2021 7.8 2022 7.0 2023 5.9 2024 5.5 Thereafter 36.7 Total expected amortization expense $ 70.9 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Net sales disaggregated by geography based on the location where the customer’s order was placed (in millions): Year Ended July 31, 2019 2018 2017 United States $ 1,192.6 $ 1,120.8 $ 990.4 Europe, Middle East and Africa 826.8 791.5 679.1 Asia Pacific 597.9 599.2 500.5 Latin America 227.6 222.7 201.9 Total net sales $ 2,844.9 $ 2,734.2 $ 2,371.9 Net sales disaggregated by product group (in millions): Year Ended July 31, 2019 2018 2017 Engine Products segment Off-Road $ 315.1 $ 327.4 $ 252.1 On-Road 179.8 154.2 110.7 Aftermarket 1,315.3 1,261.9 1,086.2 Aerospace and Defense 115.8 105.5 104.3 Engine Products segment net sales 1,926.0 1,849.0 1,553.3 Industrial Products segment Industrial Filtration Solutions 641.8 594.3 533.2 Gas Turbine Systems 106.3 115.5 122.9 Special Applications 170.8 175.4 162.5 Industrial Products segment net sales 918.9 885.2 818.6 Total net sales $ 2,844.9 $ 2,734.2 $ 2,371.9 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Note 1 describes the requirements of the new revenue recognition standard, ASC 606. The cumulative effect of the adoption on the Company’s August 1, 2018 opening balance sheet is as follows (in millions): Balance at July 31, 2018 Adjustments for ASC 606 Balance at August 1, 2018 Assets Inventories, net $ 334.1 $ (7.3 ) $ 326.8 Prepaid expense and other current assets 52.3 14.0 66.3 Liabilities Other current liabilities 86.6 0.3 86.9 Deferred income taxes 4.2 1.1 5.3 Equity Retained earnings 1,122.1 5.3 1,127.4 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Borrowings | Short-term borrowings consist of the following (in millions, except interest rates): U.S. Credit Facilities European Commercial Paper Program European Operations Credit Facilities Rest of the World Credit Facilities Total Year Ended July 31, 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Available credit facilities $ 90.0 $ 80.0 $ 111.5 $ 117.4 $ 74.4 $ 81.5 $ 63.6 $ 64.3 $ 339.5 $ 343.2 Reductions to borrowing capacity: Outstanding borrowings 2.1 — — 28.2 — — — — 2.1 28.2 Other non-borrowing reductions — — — — 34.7 34.7 23.0 21.5 57.7 56.2 Total reductions 2.1 — — 28.2 34.7 34.7 23.0 21.5 59.8 84.4 Remaining borrowing capacity $ 87.9 $ 80.0 $ 111.5 $ 89.2 $ 39.7 $ 46.8 $ 40.6 $ 42.8 $ 279.7 $ 258.8 Weighted average interest rate at end of period 3.33 % N/A N/A 0.26 % N/A N/A N/A N/A |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following (in millions): July 31, 2019 2018 3.72% Unsecured senior notes, interest payable semi-annually, principal payment of $125.0 million due March 27, 2024 $ 125.0 $ 125.0 2.93% Unsecured senior notes, interest payable semi-annually, principal payment of $25.0 million due April 16, 2025 25.0 25.0 3.18% Unsecured senior notes, interest payable semi-annually, principal payment of $125.0 million due June 17, 2030 125.0 125.0 Variable rate committed, unsecured $500.0 million revolving credit facility due July 21, 2022 and an interest rate of 2.55% as of July 31, 2019 286.5 167.4 Variable rate committed, unsecured $50.0 million term loan due July 21, 2020 and an interest rate of 3.55% as of July 31, 2019 50.0 50.0 Variable rate guaranteed senior note, interest payable quarterly, principal payment of ¥1.65 billion due May 20, 2024 and an interest rate of 0.41% as of July 31, 2019 15.2 14.8 Variable rate guaranteed senior note, interest payable quarterly, principal payment of ¥1.00 billion due July 15, 2021 and an interest rate of 0.26% as of July 31, 2019 9.2 9.0 Capitalized lease obligations, with various maturity dates and interest rates 0.2 0.6 Debt issuance costs, net (1.5 ) (1.9 ) Subtotal 634.6 514.9 Less: current maturities 50.2 15.3 Total long-term debt $ 584.4 $ 499.6 |
Schedule of maturities of long-term debt | The estimated future maturities of the Company’s long-term debt as of July 31, 2019 , are as follows (in millions): Year Ended July 31, Amount 2020 $ 50.2 2021 8.8 2022 286.1 2023 — 2024 140.0 Thereafter 149.5 Total estimated future maturities $ 634.6 |
Warranty (Tables)
Warranty (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of product warranty liability | The following is a reconciliation of warranty reserves for the years ended July 31, 2019 and 2018 (in millions): Year Ended July 31, 2019 2018 Balance at beginning of period $ 18.9 $ 14.6 Accruals for warranties issued during the reporting period 2.5 8.3 Accruals related to pre-existing warranties (including changes in estimates) (2.3 ) 0.1 Less settlements made during the period (7.9 ) (4.1 ) Balance at end of period $ 11.2 $ 18.9 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Share-based Compensation [Abstract] | |
Schedule of valuation assumption used to determine fair value of stock-based compensation awards | The Company determined the fair value of these awards using the Black-Scholes option pricing model with the following assumptions: Year Ended July 31, 2019 2018 2017 Risk-free interest rate 2.1 - 3.1% 2.0 - 2.9% 2.5 - 2.6% Expected volatility 16.0 - 21.5% 18.2 - 20.6% 20.8 - 24.1% Expected dividend yield 1.6 % 1.6 % 1.7 % Expected life: Director and officer grants 8 years 8 years 8 years Non-officer original grants 7 years 7 years 7 years |
Schedule of stock option activity | The following table summarizes stock option activity for the years ended July 31, 2019, 2018 and 2017 : Options Outstanding Weighted Average Exercise Price (1) Outstanding at July 31, 2016 6,822,390 $ 30.09 Granted 888,500 42.65 Exercised (978,193 ) 24.04 Canceled (47,146 ) 36.51 Outstanding at July 31, 2017 6,685,551 32.60 Granted 881,050 45.70 Exercised (738,635 ) 26.47 Canceled (42,154 ) 39.52 Outstanding at July 31, 2018 6,785,812 34.93 Granted 908,925 58.02 Exercised (1,103,054 ) 25.07 Canceled (60,433 ) 50.57 Outstanding at July 31, 2019 6,531,250 39.66 |
Schedule of outstanding and exercisable options | The following table summarizes information concerning outstanding and exercisable options as of July 31, 2019 : Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Exercisable Weighted Average Exercise Price $16.91 to $32.49 1,493,111 3.9 $ 27.46 1,493,111 $ 27.46 $32.50 to $37.49 1,211,064 3.0 34.41 1,211,064 34.41 $37.50 to $42.49 1,283,417 5.2 40.30 1,239,817 40.23 $42.50 to $47.49 1,653,643 7.6 44.00 840,920 43.56 $47.50 and above 890,015 9.0 58.27 34,900 52.08 6,531,250 5.6 39.66 4,819,812 35.48 |
Schedule of status of options that contain vesting provisions | The following table summarizes the status of options that contain vesting provisions: Options Weighted Average Grant Date Fair Value Non-vested at July 31, 2018 1,741,316 $ 9.20 Granted 908,925 12.27 Vested (890,816 ) 8.70 Canceled (47,987 ) 10.09 Non-vested at July 31, 2019 1,711,438 11.06 |
Schedule of performance shares activity | Factors related to the Company’s performance share awards are as follows: Year Ended July 31, 2019 2018 2017 Weighted-average per award fair value at grant date $ 58.35 $ 45.43 $ 37.39 The table below summarizes the activity during fiscal 2019 for non-vested performance share awards: Performance Shares Weighted Average Grant Date Fair Value Non-vested at July 31, 2018 174,900 $ 40.79 Granted 100,200 58.35 Vested (101,000 ) 37.39 Canceled/forfeited — — Non-vested at July 31, 2019 174,100 52.87 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of net periodic pension costs and amounts recognized in other comprehensive income | Net periodic pension costs and amounts recognized in other comprehensive (income) loss for the Company’s pension plans include the following components (in millions): Year Ended July 31, 2019 2018 2017 Service cost $ 6.0 $ 8.1 $ 8.3 Interest cost 16.4 14.8 13.5 Expected return on assets (26.5 ) (26.2 ) (26.4 ) Prior service cost and transition amortization 0.6 0.3 0.6 Actuarial loss amortization 4.4 4.6 7.3 Settlement loss 2.9 3.5 — Net periodic benefit costs 3.8 5.1 3.3 Other changes recognized in other comprehensive loss (income): Net actuarial loss (gain) 29.0 (7.2 ) (21.7 ) Amortization of asset obligations (0.2 ) (0.2 ) (0.2 ) Amortization of prior service cost (0.4 ) (0.1 ) (0.4 ) Amortization of net actuarial loss (7.3 ) (8.1 ) (7.3 ) Total recognized in other comprehensive loss (income) 21.1 (15.6 ) (29.6 ) Total recognized in net periodic benefit costs and other comprehensive loss (income) $ 24.9 $ (10.5 ) $ (26.3 ) |
Schedule of changes in projected benefit obligations, fair value of plan assets and funded status | The changes in projected benefit obligations, fair value of plan assets and funded status of the Company’s pension plans for the years ended July 31, 2019 and 2018 are summarized as follows (in millions): Year Ended July 31, 2019 2018 Change in projected benefit obligation: Projected benefit obligation, beginning of year $ 488.2 $ 515.1 Service cost 6.0 8.1 Interest cost 16.4 14.8 Plan amendments 1.2 — Participant contributions 0.8 0.8 Actuarial loss (gain) 42.5 (16.9 ) Currency exchange rates (11.2 ) 0.5 Settlement (10.5 ) (17.7 ) Net transfers 1.2 — Benefits paid (14.2 ) (16.5 ) Projected benefit obligation, end of year $ 520.4 $ 488.2 Change in fair value of plan assets: Fair value of plan assets, beginning of year $ 486.3 $ 465.1 Actual return on plan assets 39.4 16.5 Company contributions 10.4 37.6 Participant contributions 0.8 0.8 Currency exchange rates (11.2 ) 0.5 Settlement (10.5 ) (17.7 ) Net transfers 1.2 — Benefits paid (14.2 ) (16.5 ) Fair value of plan assets, end of year $ 502.2 $ 486.3 Funded status: Projected benefit obligation in excess of plan assets, end of year $ (18.2 ) $ (1.9 ) Amounts recognized on the Consolidated Balance Sheets consist of: Other long-term assets $ 6.8 $ 16.2 Other current liabilities (1.5 ) (1.5 ) Other long-term liabilities (23.5 ) (16.6 ) Net recognized liability $ (18.2 ) $ (1.9 ) |
Schedule of weighted-average discount rates in determining actuarial present value of projected benefit obligation | The weighted-average discount rate and rates of increase in future compensation levels used in determining the actuarial present value of the projected benefit obligation are as follows: Projected Benefit Obligation Year Ended July 31, Weighted average actuarial assumptions 2019 2018 All U.S. plans: Discount rate 3.54 % 4.43 % Non-U.S. plans: Discount rate 1.79 % 2.43 % Rate of compensation increase 2.69 % 2.69 % |
Schedule of assumptions used to determine net periodic benefit cost | The weighted-average discount rates, expected returns on plan assets and rates of increase in future compensation levels used to determine the net periodic benefit cost are as follows: Net Periodic Benefit Cost Year Ended July 31, Weighted average actuarial assumptions 2019 2018 2017 All U.S. plans: Discount rate 4.43 % 3.94 % 3.65 % Expected return on plan assets 6.25 % 6.58 % 6.90 % Rate of compensation increase N/A N/A 2.56 % Non-U.S. plans: Discount rate 2.43 % 2.40 % 2.08 % Expected return on plan assets 4.08 % 4.19 % 3.93 % Rate of compensation increase 2.69 % 2.70 % 2.69 % |
Schedule of estimated fair value of pension plan assets and their respective levels in the fair value hierarchy | The plans’ investments are diversified to assist in managing risk. During the year ended July 31, 2019 , the Company’s asset allocation guidelines targeted an allocation as follows: Salaried Pension Plan Hourly Pension Plan Global equities 33 % 37 % Fixed income 65 % 60 % Real assets 1 % 2 % Cash and cash equivalents 1 % 1 % Total 100 % 100 % |
Schedule of certain investments at NAV | Certain investments held by the Plan as of July 31, 2019, valued at NAV, had the following unfunded commitments and/or redemption restrictions (in millions): U.S Pension Plans Asset Category Measured Using NAV Per Share as Practical Expedient Unfunded Commitments Redemption Frequency (If Currently Eligible) Redemption Notice Period July 31, 2019 Global equity securities $ 35.8 $ 1.8 Monthly, Weekly 10 - 90 days Private equity and other funds 33.1 — Quarterly, Semi-Annually 60 - 90 days Real asset funds 3.4 4.3 Not eligible N/A Total U.S. assets $ 72.3 $ 6.1 |
Schedule of estimated future benefit payments | The estimated future benefit payments for the Company’s U.S. and non-U.S. plans are as follows (in millions): Year Ending July 31, Estimated Future Benefit Payments 2020 $ 29.6 2021 27.5 2022 28.5 2023 27.3 2024 26.2 2025-2029 139.9 |
U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of estimated fair value of pension plan assets and their respective levels in the fair value hierarchy | The estimated fair value of U.S. pension plan assets and their respective levels in the fair value hierarchy at July 31, 2019 and 2018 by asset category are as follows (in millions): U.S Pension Plans Asset Category Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Measured Using NAV Per Share as Practical Expedient Total July 31, 2019 Cash and cash equivalents $ 3.6 $ 0.4 $ — $ — $ 4.0 Global equity securities 76.3 — — 35.8 112.1 Fixed income securities 95.2 96.7 — — 191.9 Private equity and other funds — — — 33.1 33.1 Real asset funds — — — 3.4 3.4 Total U.S. assets $ 175.1 $ 97.1 $ — $ 72.3 $ 344.5 July 31, 2018 Cash and cash equivalents $ 4.7 $ 0.3 $ — $ — $ 5.0 Global equity securities 82.4 — — 31.0 113.4 Fixed income securities 72.5 81.0 — — 153.5 Private equity and other funds — — — 53.7 53.7 Real asset funds — — — 5.3 5.3 Total U.S. assets $ 159.6 $ 81.3 $ — $ 90.0 $ 330.9 |
Non - U.S. Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of estimated fair value of pension plan assets and their respective levels in the fair value hierarchy | The estimated fair values of non-U.S. pension plan assets and their respective levels in the fair value hierarchy at July 31, 2019 and 2018 by asset category are as follows (in millions): Non-U.S. Pension Plans Asset Category Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total July 31, 2019 Cash and cash equivalents $ 0.4 $ — $ — $ 0.4 Global equity securities 79.4 — — 79.4 Fixed income securities 11.9 — — 11.9 Investment funds — 35.2 — 35.2 Insurance contracts — — 30.8 30.8 Total Non-U.S. assets $ 91.7 $ 35.2 $ 30.8 $ 157.7 July 31, 2018 Cash and cash equivalents $ 0.6 $ — $ — $ 0.6 Global equity securities 78.8 — — 78.8 Fixed income securities 11.3 — — 11.3 Investment funds — 36.1 — 36.1 Insurance contracts — — 28.6 28.6 Total Non-U.S. assets $ 90.7 $ 36.1 $ 28.6 $ 155.4 |
Summary of the changes in the fair value of non-U.S. pension plans' assets with unobservable inputs | The following table summarizes the changes in the fair values of the non-U.S. pension plans’ Level 3 assets for the years ended July 31, 2019, 2018 and 2017 (in millions): Non-U.S. Pension Plans Ending balance at July 31, 2016 $ 31.8 Unrealized gains 1.2 Foreign currency exchange 1.7 Purchases 1.0 Sales (1.4 ) Ending balance at July 31, 2017 34.3 Unrealized losses (4.0 ) Foreign currency exchange 0.2 Purchases 0.5 Sales (2.4 ) Ending balance at July 31, 2018 28.6 Unrealized gains 3.5 Foreign currency exchange (1.5 ) Purchases 0.5 Sales (0.3 ) Ending balance at July 31, 2019 $ 30.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of earnings before income taxes | The components of earnings before income taxes are as follows (in millions): Year Ended July 31, 2019 2018 2017 Earnings before income taxes: United States $ 127.4 $ 103.2 $ 109.8 Foreign 247.8 260.4 212.2 Total $ 375.2 $ 363.6 $ 322.0 |
Schedule of components of the provision for income taxes | The components of the provision for income taxes are as follows (in millions): Year Ended July 31, 2019 2018 2017 Income tax provision (benefit): Current Federal $ 21.3 $ 100.0 $ 38.9 State 4.0 5.3 4.3 Foreign 72.5 71.0 56.6 97.8 176.3 99.8 Deferred Federal 7.4 6.5 (7.7 ) State 1.4 0.2 (0.4 ) Foreign 1.4 0.3 (2.5 ) 10.2 7.0 (10.6 ) Total $ 108.0 $ 183.3 $ 89.2 |
Schedule of reconciliation of the U.S. statutory income tax rate with the effective income tax rate | The following table reconciles the U.S. statutory income tax rate with the effective income tax rate: Year Ended July 31, 2019 2018 2017 Statutory U.S. federal rate 21.0 % 26.9 % 35.0 % State income taxes 1.3 % 0.9 % 0.9 % Foreign operations 4.7 % 1.7 % (8.3 )% Global Intangible Low Tax Income (GILTI) 1.3 % N/A N/A Foreign Derived Intangible Income (FDII) (1.4 )% N/A N/A Export, manufacturing and research credits (0.8 )% (1.0 )% (1.1 )% Change in unrecognized tax benefits (0.8 )% (0.3 )% 1.0 % Tax benefits on stock-based compensation (1.6 )% (1.2 )% N/A Impact of U.S. Tax Cuts and Jobs Act 5.0 % 23.2 % N/A Other 0.1 % 0.2 % 0.2 % Effective income tax rate 28.8 % 50.4 % 27.7 % |
Schedule of the tax effects of temporary differences that give rise to deferred tax assets and liabilities | The tax effects of temporary differences that give rise to deferred tax assets and liabilities are as follows (in millions): July 31, 2019 2018 Deferred tax assets: Accrued expenses $ 10.1 $ 13.2 Compensation and retirement plans 27.9 29.6 NOL and tax credit carryforwards 4.4 7.2 LIFO and inventory reserves 3.0 2.3 Other 4.5 3.6 Gross deferred tax assets 49.9 55.9 Valuation allowance (4.4 ) (6.2 ) Deferred tax assets, net of valuation allowance 45.5 49.7 Deferred tax liabilities: Depreciation and amortization (43.2 ) (33.6 ) Other (1.4 ) (1.1 ) Deferred tax liabilities (44.6 ) (34.7 ) Net deferred tax asset $ 0.9 $ 15.0 |
Summary of reconciliation of the beginning and ending amount of gross unrecognized tax benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in millions): Year Ended July 31, 2019 2018 2017 Gross unrecognized tax benefits at beginning of fiscal year $ 18.5 $ 18.8 $ 15.7 Additions for tax positions of the current year 2.5 4.4 3.9 Additions for tax positions of prior years 0.7 0.2 0.1 Reductions for tax positions of prior years (4.9 ) (3.1 ) (0.1 ) Settlements — (0.4 ) 0.3 Reductions due to lapse of applicable statute of limitations (1.3 ) (1.4 ) (1.1 ) Gross unrecognized tax benefits at end of fiscal year $ 15.5 $ 18.5 $ 18.8 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of derivatives on balance sheet | The following table details the fair value of the Company’s derivative contracts, which are recorded on a gross basis in the consolidated balance sheets as of July 31, 2019 and July 31, 2018 (in millions): Fair Values Significant Other Observable Inputs (Level 2) Notional Amounts Assets Liabilities (1) July 31, July 31, July 31, 2019 2018 2019 2018 2019 2018 Forward foreign currency exchange contracts $ 28.2 $ 19.3 $ 1.6 $ 0.7 (2) $ (1.8 ) $ (1.0 ) Net investment hedge 55.8 — 1.1 — (3) (1.9 ) — Total $ 84.0 $ 19.3 $ 2.7 $ 0.7 $ (3.7 ) $ (1.0 ) (1) Recorded within other long-term liabilities in the Company’s audited consolidated balance sheets. (2) Recorded within prepaid expenses and other current assets in the Company’s audited consolidated balance sheets. (3) Recorded within other assets in the Company’s audited consolidated balance sheets. |
Schedule of net investment hedges | The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions): Pre-tax Gains (Losses) Recognized in Accumulated Other Comprehensive income (loss): Year Ended July 31, 2019 2018 2017 Forward foreign currency exchange contracts $ 0.2 $ 3.2 $ (2.4 ) Net investment hedge $ (0.8 ) $ — $ — Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss): Year Ended July 31, 2019 2018 2017 Forward foreign currency exchange contracts $ 0.1 $ 0.2 $ (1.4 ) Net investment hedge $ — $ — $ — |
Schedule of cash flow hedges | The following table summarizes the pre-tax impact of the gains and losses on the Company’s designated forward foreign currency exchange contracts and net investment hedges (in millions): Pre-tax Gains (Losses) Recognized in Accumulated Other Comprehensive income (loss): Year Ended July 31, 2019 2018 2017 Forward foreign currency exchange contracts $ 0.2 $ 3.2 $ (2.4 ) Net investment hedge $ (0.8 ) $ — $ — Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss): Year Ended July 31, 2019 2018 2017 Forward foreign currency exchange contracts $ 0.1 $ 0.2 $ (1.4 ) Net investment hedge $ — $ — $ — |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of treasury stock activity | Treasury stock share activity for the years ended July 31, 2019 and 2018 is summarized as follows: Year Ended July 31, 2019 2018 Beginning balance 22,871,145 21,037,353 Stock repurchases 2,636,554 2,642,690 Net issuance upon exercise of stock options (1,057,604 ) (723,677 ) Issuance under compensation plans (104,483 ) (78,304 ) Other activity (21,129 ) (6,917 ) Ending balance 24,324,483 22,871,145 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive loss by component | Changes in accumulated other comprehensive loss by component for the years ended July 31, 2019 and 2018 are as follows (in millions): Foreign currency translation adjustment Pension benefits Derivative financial instruments Total Balance as of July 31, 2018, net of tax $ (66.1 ) $ (82.9 ) $ (0.8 ) $ (149.8 ) Other comprehensive (loss) income before reclassifications and tax (26.6 ) (16.3 ) (0.6 ) (43.5 ) Tax benefit — 4.1 0.1 4.2 Other comprehensive (loss) income before reclassifications, net of tax (26.6 ) (12.2 ) (0.5 ) (39.3 ) Reclassifications, before tax — (4.8 ) 0.1 (4.7 ) Tax benefit — 0.9 — 0.9 Reclassifications, net of tax — (3.9 ) (2) 0.1 (1) (3.8 ) Other comprehensive (loss) income, net of tax (26.6 ) (16.1 ) (0.4 ) (43.1 ) Balance as of July 31, 2019, net of tax $ (92.7 ) $ (99.0 ) $ (1.2 ) $ (192.9 ) Balance as of July 31, 2017, net of tax $ (58.8 ) $ (95.1 ) $ (3.1 ) $ (157.0 ) Other comprehensive (loss) income before reclassifications and tax (7.3 ) 11.4 3.2 7.3 Tax expense — (3.0 ) (1.1 ) (4.1 ) Other comprehensive (loss) income before reclassifications, net of tax (7.3 ) 8.4 2.1 3.2 Reclassifications, before tax — 5.5 0.2 5.7 Tax expense — (1.7 ) — (1.7 ) Reclassifications, net of tax — 3.8 (2) 0.2 (1) 4.0 Other comprehensive (loss) income, net of tax (7.3 ) 12.2 2.3 7.2 Balance as of July 31, 2018, net of tax $ (66.1 ) $ (82.9 ) $ (0.8 ) $ (149.8 ) (1) Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net (see Note 1). (2) Primarily includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 11) that were reclassified from accumulated other comprehensive loss to operating expenses or cost of sales. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Estimated Future Minimum Lease Payments Under Operating Leases | As of July 31, 2019 , the estimated future minimum lease payments under operating leases are as follows (in millions): Year Ending July 31, Operating Leases 2020 $ 24.0 2021 17.5 2022 11.3 2023 6.4 2024 4.6 Thereafter 19.0 Total future minimum lease payments $ 82.8 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of segment detail | Segment detail is summarized as follows (in millions): Engine Products Industrial Products Corporate and Unallocated Total Company Fiscal 2019 Net sales $ 1,926.0 $ 918.9 $ — $ 2,844.9 Equity earnings in unconsolidated affiliates 2.1 0.1 — 2.2 Earnings (loss) before income taxes 254.6 140.1 (19.5 ) 375.2 Equity investments in unconsolidated affiliates 19.0 4.0 — 23.0 Fiscal 2018 Net sales $ 1,849.0 $ 885.2 $ — $ 2,734.2 Equity earnings in unconsolidated affiliates 3.7 (0.1 ) — 3.6 Earnings (loss) before income taxes 258.8 135.5 (30.7 ) 363.6 Equity investments in unconsolidated affiliates 17.8 3.9 — 21.7 Fiscal 2017 Net sales $ 1,553.3 $ 818.6 $ — $ 2,371.9 Equity earnings in unconsolidated affiliates 4.4 0.6 — 5.0 Earnings (loss) before income taxes 218.4 128.5 (24.9 ) 322.0 Equity investments in unconsolidated affiliates 14.8 4.2 — 19.0 |
Reconciliation of net sales by product group per segment | Net sales by product group within the Engine Products segment and Industrial Products segment is summarized as follows (in millions): Year Ended July 31, 2019 2018 2017 Engine Products segment: Off-Road $ 315.1 $ 327.4 $ 252.1 On-Road 179.8 154.2 110.7 Aftermarket 1,315.3 1,261.9 1,086.2 Aerospace and Defense 115.8 105.5 104.3 Total Engine Products segment 1,926.0 1,849.0 1,553.3 Industrial Products segment: Industrial Filtration Solutions 641.8 594.3 533.2 Gas Turbine Systems 106.3 115.5 122.9 Special Applications 170.8 175.4 162.5 Total Industrial Products segment 918.9 885.2 818.6 Total net sales $ 2,844.9 $ 2,734.2 $ 2,371.9 |
Schedule of net sales by origination and property, plant and equipment by geographic region | Net sales by origination and property, plant and equipment by geographic region are summarized as follows (in millions): Net Sales (1) Property, Plant and Equipment, Net Fiscal 2019 United States $ 1,192.6 $ 231.0 Europe, Middle East and Africa 826.8 199.1 Asia Pacific 597.9 50.2 Latin America 227.6 108.6 Total $ 2,844.9 $ 588.9 Fiscal 2018 United States $ 1,120.8 $ 188.1 Europe, Middle East and Africa 791.5 181.1 Asia Pacific 599.2 53.4 Latin America 222.7 86.7 Total $ 2,734.2 $ 509.3 Fiscal 2017 United States $ 990.4 $ 193.5 Europe, Middle East and Africa 679.1 170.0 Asia Pacific 500.5 55.3 Latin America 201.9 65.8 Total $ 2,371.9 $ 484.6 (1) Net sales by origination is based on the country of the Company’s legal entity where the customer’s order was placed. |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Jul. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Schedule of unaudited consolidated quarterly financial information | Unaudited consolidated quarterly financial information for the years ended July 31, 2019 and 2018 is as follows (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter Fiscal 2019 Net sales $ 701.4 $ 703.7 $ 712.8 $ 726.9 Gross profit 238.4 225.4 240.7 243.8 Net earnings 73.8 60.1 75.2 58.0 Net earnings per share – basic 0.57 0.47 0.59 0.45 Net earnings per share – diluted 0.56 0.46 0.58 0.45 Dividends paid per share 0.19 0.19 0.19 0.21 Fiscal 2018 Net sales $ 644.8 $ 664.7 $ 700.0 $ 724.7 Gross profit 224.3 218.9 239.8 252.8 Net earnings (loss) 60.9 (52.9 ) 69.9 102.4 Net earnings (loss) per share – basic 0.47 (0.40 ) 0.54 0.79 Net earnings (loss) per share – diluted 0.46 (0.40 ) 0.53 0.78 Dividends paid per share 0.18 0.18 0.18 0.19 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||||
Jul. 31, 2019USD ($)joint_ventureplant | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | Jul. 31, 2019EUR (€) | Jul. 31, 2019USD ($) | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Number of manufacturing plants around world | plant | 50 | ||||
Number of joint ventures | joint_venture | 3 | ||||
Foreign currency transaction gains (losses) | $ (4,900,000) | $ (7,400,000) | $ (4,000,000) | ||
Number of days considered to review for collectability | 90 days | ||||
Percentage of LIFO inventory | 28.00% | 31.30% | 31.30% | ||
Excess of FIFO over LIFO inventory | $ 38,200,000 | $ 39,800,000 | |||
Depreciation | $ 73,500,000 | 71,100,000 | 68,800,000 | ||
Cost of sales | 1,896,600,000 | 1,798,400,000 | 1,551,000,000 | ||
Notional amount | 19,300,000 | 84,000,000 | |||
Decrease in other income, net | $ (6,900,000) | (7,900,000) | (17,900,000) | ||
Assets | 1,976,600,000 | 2,142,600,000 | |||
Liabilities | 1,118,800,000 | 1,239,900,000 | |||
Minimum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Capitalization of direct cost, amortization period in years | 5 years | ||||
Maximum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Capitalization of direct cost, amortization period in years | 7 years | ||||
Machinery and equipment | Minimum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 3 years | ||||
Machinery and equipment | Maximum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Building and Building Improvements | Minimum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Building and Building Improvements | Maximum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 40 years | ||||
Software development | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Property, plant and equipment, useful life | 10 years | ||||
Other Intangible Assets | Minimum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Weighted Average Useful Life | 5 years | ||||
Other Intangible Assets | Maximum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Weighted Average Useful Life | 20 years | ||||
Partially Completed Facility In Xuzhou China | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Asset impairment charges | $ 0 | 0 | 0 | ||
Accounting Standards Update 2017-07 | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Decrease in other income, net | 3,000,000 | 5,000,000 | |||
Shipping and handling | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Cost of sales | $ 76,700,000 | 73,500,000 | $ 61,400,000 | ||
Net investment hedge | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Notional amount | $ 0 | 55,800,000 | |||
Net investment hedge | Cross-currency swap | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Notional amount | € | € 50,000,000 | ||||
Pro Forma | Accounting Standards Update 2016-02 | Minimum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Assets | 65,000,000 | ||||
Liabilities | 65,000,000 | ||||
Pro Forma | Accounting Standards Update 2016-02 | Maximum | |||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||||
Assets | 75,000,000 | ||||
Liabilities | $ 75,000,000 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Oct. 18, 2018 | Jul. 31, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Business Acquisition [Line Items] | |||||
Cash consideration | $ 96 | $ (0.5) | $ 32.2 | ||
BOFA International LTD | |||||
Business Acquisition [Line Items] | |||||
Business combination, percentage of voting interests acquired | 88.00% | ||||
Cash consideration | $ 98.2 | ||||
Cash acquired | $ 2.2 | ||||
Additional ownership percentage acquired | 3.00% | ||||
Period that exercise of options triggers purchase obligation | 3 years | ||||
Voting interest acquired (percentage) | 12.00% | 9.00% | 9.00% | ||
Minimum | BOFA International LTD | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 5 years | ||||
Maximum | BOFA International LTD | |||||
Business Acquisition [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life (in years) | 15 years | ||||
BOFA International LTD | |||||
Business Acquisition [Line Items] | |||||
Ownership percentage | 91.00% | 91.00% |
Acquisitions (Summary of Assets
Acquisitions (Summary of Assets and Liabilities) (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Oct. 18, 2018 | Jul. 31, 2018 | Jul. 31, 2017 |
Assets: | ||||
Goodwill | $ 303.1 | $ 238.4 | $ 238.1 | |
BOFA International LTD | ||||
Assets: | ||||
Net tangible assets | $ 12.2 | |||
Goodwill | 72.9 | |||
Assets | 131.7 | |||
Liabilities: | ||||
Deferred tax liabilities | 8.2 | |||
Assumed debt | 14.4 | |||
Liabilities | 22.6 | |||
Total fair value | 109.1 | |||
Company’s initial net consideration paid | 96 | |||
Company’s initial non-controlling interest | $ 10 | 13.1 | ||
Customer relationships | BOFA International LTD | ||||
Assets: | ||||
Intangible assets | 39.8 | |||
Trademarks and technology | BOFA International LTD | ||||
Assets: | ||||
Intangible assets | $ 6.8 |
Acquisitions (Summary of Noncon
Acquisitions (Summary of Noncontrolling Interest) (Details) - BOFA International LTD - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2019 | Oct. 18, 2018 | |
Business Acquisition [Line Items] | ||
Company’s initial non-controlling interest | $ 10 | $ 13.1 |
Purchase of additional 3% of fair value | $ 3.1 | |
Additional ownership percentage acquired | 3.00% |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Inventory) (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Aug. 01, 2018 | Jul. 31, 2018 |
Inventory, Net [Abstract] | |||
Raw materials | $ 114.7 | $ 128.7 | |
Work in process | 33 | 27.4 | |
Finished products | 185.1 | 178 | |
Inventories, net | $ 332.8 | $ 326.8 | $ 334.1 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 |
Property, Plant and Equipment [Line Items] | |||
Less: accumulated depreciation | $ (831.2) | $ (790.4) | |
Net property, plant and equipment | 588.9 | 509.3 | $ 484.6 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 24.2 | 22.8 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 325.3 | 310.8 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 813.5 | 769.1 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 142.8 | 132.6 | |
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 114.3 | $ 64.4 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Options excluded from the diluted net earnings per share calculation (in shares) | 0.8 | 0.1 | 1 | ||||||||
Net earnings for basic and diluted earnings per share computation | $ 58 | $ 75.2 | $ 60.1 | $ 73.8 | $ 102.4 | $ 69.9 | $ (52.9) | $ 60.9 | $ 267.2 | $ 180.3 | $ 232.8 |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||||||||||
Weighted average common shares – basic | 128.3 | 130.3 | 132.6 | ||||||||
Dilutive impact of share-based awards | 2 | 1.9 | 1.5 | ||||||||
Weighted average common shares – diluted | 130.3 | 132.2 | 134.1 | ||||||||
Net earnings per share: | |||||||||||
Net earnings per share – basic (in dollars per share) | $ 0.45 | $ 0.59 | $ 0.47 | $ 0.57 | $ 0.79 | $ 0.54 | $ (0.40) | $ 0.47 | $ 2.08 | $ 1.38 | $ 1.76 |
Net earnings per share – diluted (in dollars per share) | $ 0.45 | $ 0.58 | $ 0.46 | $ 0.56 | $ 0.78 | $ 0.53 | $ (0.40) | $ 0.46 | $ 2.05 | $ 1.36 | $ 1.74 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Reconciliation of Goodwill) (Details) - USD ($) | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill impairment | $ 0 | $ 0 |
Goodwill [Roll Forward] | ||
Beginning Balance | 238,400,000 | 238,100,000 |
Goodwill acquired | 72,900,000 | 600,000 |
Foreign exchange translation | (8,200,000) | (300,000) |
Ending Balance | 303,100,000 | 238,400,000 |
Engine Products | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 84,900,000 | 84,300,000 |
Goodwill acquired | 0 | 600,000 |
Foreign exchange translation | (400,000) | 0 |
Ending Balance | 84,500,000 | 84,900,000 |
Industrial Products | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 153,500,000 | 153,800,000 |
Goodwill acquired | 72,900,000 | 0 |
Foreign exchange translation | (7,800,000) | (300,000) |
Ending Balance | $ 218,600,000 | $ 153,500,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Reconciliation of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 123.8 | $ 106.7 |
Accumulated Amortization | $ (52.9) | (71.1) |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 10 years | |
Gross Carrying Amount | $ 101.5 | 63 |
Accumulated Amortization | $ (43.3) | (35.7) |
Patents, Trademarks and Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 6 years 2 months 12 days | |
Gross Carrying Amount | $ 22.3 | 43.7 |
Accumulated Amortization | $ (9.6) | $ (35.4) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Expected Amortization Expense Relating To Existing Intangible Assets) (Details) $ in Millions | Jul. 31, 2019USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2020 | $ 8 |
2021 | 7.8 |
2022 | 7 |
2023 | 5.9 |
2024 | 5.5 |
Thereafter | 36.7 |
Total expected amortization expense | $ 70.9 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue by Geographic Region) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,844.9 | $ 2,734.2 | $ 2,371.9 |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,192.6 | 1,120.8 | 990.4 |
Europe, Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 826.8 | 791.5 | 679.1 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 597.9 | 599.2 | 500.5 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 227.6 | $ 222.7 | $ 201.9 |
Revenue (Disaggregation of Re_2
Revenue (Disaggregation of Revenue by Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,844.9 | $ 2,734.2 | $ 2,371.9 |
Engine Products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,926 | 1,849 | 1,553.3 |
Engine Products | Off-Road | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 315.1 | 327.4 | 252.1 |
Engine Products | On-Road | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 179.8 | 154.2 | 110.7 |
Engine Products | Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,315.3 | 1,261.9 | 1,086.2 |
Engine Products | Aerospace and Defense | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 115.8 | 105.5 | 104.3 |
Industrial Products | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 918.9 | 885.2 | 818.6 |
Industrial Products | Industrial Filtration Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 641.8 | 594.3 | 533.2 |
Industrial Products | Gas Turbine Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 106.3 | 115.5 | 122.9 |
Industrial Products | Special Applications | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 170.8 | $ 175.4 | $ 162.5 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||||||||||
Contract with customer asset | $ 12.4 | $ 12.4 | |||||||||
Contract with customer liability | 10.4 | $ 10.5 | $ 10.4 | $ 10.5 | |||||||
Description of performance obligation timing | Generally, these contracts have terms of one year or less | ||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Gross profit | $ 243.8 | $ 240.7 | $ 225.4 | $ 238.4 | $ 252.8 | $ 239.8 | $ 218.9 | $ 224.3 | $ 948.3 | $ 935.8 | $ 820.9 |
Adjustments for ASC 606 | Accounting Standards Update 2014-09 | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Gross profit | $ 16.1 |
Revenue (Cumulative Effect of A
Revenue (Cumulative Effect of Adoption) (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Aug. 01, 2018 | Jul. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Inventories, net | $ 332.8 | $ 326.8 | $ 334.1 |
Prepaid expenses and other current assets | 82.5 | 66.3 | 52.3 |
Other current liabilities | 73.1 | 86.9 | 86.6 |
Deferred income taxes | 13.2 | 5.3 | 4.2 |
Non-controlling interest | 1,281.5 | 1,127.4 | $ 1,122.1 |
Calculated under Revenue Guidance in Effect before Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Inventories, net | 334.1 | ||
Prepaid expenses and other current assets | 52.3 | ||
Other current liabilities | 86.6 | ||
Deferred income taxes | 4.2 | ||
Non-controlling interest | $ 1,122.1 | ||
Accounting Standards Update 2014-09 | Adjustments for ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Inventories, net | (7.3) | ||
Prepaid expenses and other current assets | 14 | ||
Other current liabilities | 0.3 | ||
Deferred income taxes | 1.1 | ||
Non-controlling interest | $ 5.3 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2018 |
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 2.1 | $ 28.2 |
Line of credit | ||
Short-term Debt [Line Items] | ||
Available credit facilities | 339.5 | 343.2 |
Short-term borrowings | 59.8 | 84.4 |
Remaining borrowing capacity | 279.7 | 258.8 |
United States | Line of credit | ||
Short-term Debt [Line Items] | ||
Available credit facilities | 90 | 80 |
Short-term borrowings | 2.1 | 0 |
Remaining borrowing capacity | $ 87.9 | 80 |
Weighted average interest rate at end of period | 3.33% | |
Europe | Line of credit | ||
Short-term Debt [Line Items] | ||
Available credit facilities | $ 74.4 | 81.5 |
Short-term borrowings | 34.7 | 34.7 |
Remaining borrowing capacity | 39.7 | 46.8 |
Europe | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Available credit facilities | 111.5 | 117.4 |
Short-term borrowings | 0 | 28.2 |
Remaining borrowing capacity | 111.5 | $ 89.2 |
Weighted average interest rate at end of period | 0.26% | |
Rest of the World | Line of credit | ||
Short-term Debt [Line Items] | ||
Available credit facilities | 63.6 | $ 64.3 |
Short-term borrowings | 23 | 21.5 |
Remaining borrowing capacity | 40.6 | 42.8 |
Outstanding borrowings | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 2.1 | 28.2 |
Outstanding borrowings | United States | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 2.1 | 0 |
Outstanding borrowings | Europe | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 0 | 0 |
Outstanding borrowings | Europe | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 0 | 28.2 |
Outstanding borrowings | Rest of the World | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 0 | 0 |
Other non-borrowing reductions | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 57.7 | 56.2 |
Other non-borrowing reductions | United States | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 0 | 0 |
Other non-borrowing reductions | Europe | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 34.7 | 34.7 |
Other non-borrowing reductions | Europe | Commercial Paper | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | 0 | 0 |
Other non-borrowing reductions | Rest of the World | Line of credit | ||
Short-term Debt [Line Items] | ||
Short-term borrowings | $ 23 | $ 21.5 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-term Debt) (Details) ¥ in Millions | 12 Months Ended | ||||
Jul. 31, 2019JPY (¥) | Jul. 31, 2019USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018JPY (¥) | Jul. 31, 2018USD ($) | |
Debt Instrument [Line Items] | |||||
Debt issuance costs, net | $ (1,500,000) | $ (1,900,000) | |||
Subtotal | 634,600,000 | 514,900,000 | |||
Less: current maturities | (50,200,000) | (15,300,000) | |||
Long-term debt | 584,400,000 | 499,600,000 | |||
Senior Notes | 3.72% Unsecured senior notes, interest payable semi-annually, principal payment of $125.0 million due March 27, 2024 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 125,000,000 | 125,000,000 | |||
Debt instrument interest rate | 3.72% | 3.72% | |||
Debt instrument periodic principal payment | $ 125,000,000 | ||||
Senior Notes | 2.93% Unsecured senior notes, interest payable semi-annually, principal payment of $25.0 million due April 16, 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 25,000,000 | 25,000,000 | |||
Debt instrument interest rate | 2.93% | 2.93% | |||
Debt instrument periodic principal payment | 25,000,000 | ||||
Senior Notes | 3.18% Unsecured senior notes, interest payable semi-annually, principal payment of $125.0 million due June 17, 2030 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 125,000,000 | 125,000,000 | |||
Debt instrument interest rate | 3.18% | 3.18% | |||
Debt instrument periodic principal payment | $ 125,000,000 | ||||
Senior Notes | Variable rate guaranteed senior note, interest payable quarterly, principal payment of ¥1.65 billion due May 20, 2024 and an interest rate of 0.41% as of July 31, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | ¥ | ¥ 15.2 | ¥ 14.8 | |||
Debt instrument interest rate | 0.41% | 0.41% | |||
Debt instrument periodic principal payment | ¥ | ¥ 1,650 | ||||
Senior Notes | Variable rate guaranteed senior note, interest payable quarterly, principal payment of ¥1.00 billion due July 15, 2021 and an interest rate of 0.26% as of July 31, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | ¥ | ¥ 9.2 | ¥ 9 | |||
Debt instrument interest rate | 0.26% | 0.26% | |||
Debt instrument periodic principal payment | ¥ | ¥ 1,000 | ||||
Line of credit | Variable rate committed, unsecured $500.0 million revolving credit facility due July 21, 2022 and an interest rate of 2.55% as of July 31, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 286,500,000 | 167,400,000 | |||
Debt instrument interest rate | 2.55% | 2.55% | |||
Borrowing capacity | $ 500,000,000 | ||||
Term loan | Variable rate committed, unsecured $50.0 million term loan due July 21, 2020 and an interest rate of 3.55% as of July 31, 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 50,000,000 | 50,000,000 | |||
Debt instrument interest rate | 3.55% | 3.55% | |||
Debt instrument, face amount | $ 50,000,000 | ||||
Capital lease obligations | Capitalized lease obligations, with various maturity dates and interest rates | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 200,000 | $ 600,000 |
Long-Term Debt (Future Maturiti
Long-Term Debt (Future Maturities of Long Term Debt) (Details) $ in Millions | Jul. 31, 2019USD ($) |
Maturities of Long-term Debt [Abstract] | |
2020 | $ 50.2 |
2021 | 8.8 |
2022 | 286.1 |
2023 | 0 |
2024 | 140 |
Thereafter | 149.5 |
Total estimated future maturities | $ 634.6 |
Long-Term Debt (Narrative) (Det
Long-Term Debt (Narrative) (Details) - Multi-currency revolving credit facility - Line of credit - USD ($) | Jul. 31, 2019 | Jul. 21, 2017 |
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 500,000,000 | |
Additional borrowing capacity on line of credit under certain conditions | $ 250,000,000 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at beginning of period | $ 18.9 | $ 14.6 |
Accruals for warranties issued during the reporting period | 2.5 | 8.3 |
Accruals related to pre-existing warranties (including changes in estimates) | (2.3) | 0.1 |
Less settlements made during the period | (7.9) | (4.1) |
Balance at end of period | $ 11.2 | $ 18.9 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2010 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options, weighted average grant date fair value (in dollars per share) | $ 12.27 | $ 9.29 | $ 10.09 | |
Intrinsic value of stock options exercised | $ 30.3 | $ 16 | $ 18.3 | |
Shares reserved for outstanding options and future grants (in shares) | 7,738,519 | |||
Intrinsic value of shares outstanding | $ 74.7 | |||
Intrinsic value of shares exercisable | 69.9 | |||
Equity instruments other than options vested in period | 44.5 | 42 | 39.6 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense associated with stock options | 9.8 | 8.1 | 7.5 | |
Tax benefit recorded resulting from stock option compensation expense recognized | 2 | 1.9 | 2.2 | |
Total unrecognized compensation expense related to non-vested stock options | 8 | |||
Stock options | 2010 Master Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options exercisable term (in years) | 10 years | |||
Stock option, award vesting period (in years) | 3 years | |||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation expense related to non-vested stock options | $ 1.7 | |||
Performance shares | 2010 Master Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance awards measurement period (in years) | 3 years | |||
Expiration period (in years) | 3 years | |||
Performance award expense | $ 3.8 | $ 7.5 | $ 0.9 | |
Minimum | Performance shares | 2010 Master Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout percentage based on target award | 0.00% | |||
Maximum | Performance shares | 2010 Master Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Payout percentage based on target award | 200.00% |
Stock-Based Compensation (Weigh
Stock-Based Compensation (Weighted Average Assumptions For Recognized Fair Value Of Stock-Based Employee Compensation Cost) (Details) | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.10% | 2.00% | 2.50% |
Risk-free interest rate, maximum | 3.10% | 2.90% | 2.60% |
Expected volatility, minimum | 16.00% | 18.20% | 20.80% |
Expected volatility, maximum | 21.50% | 20.60% | 24.10% |
Expected dividend yield | 1.60% | 1.60% | 1.70% |
Director and officer grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life, reload grants (in years) | 8 years | 8 years | 8 years |
Non-officer original grants | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life, reload grants (in years) | 7 years | 7 years | 7 years |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options Outstanding, Beginning Balance (in shares) | 6,785,812 | 6,685,551 | 6,822,390 |
Granted (in shares) | 908,925 | 881,050 | 888,500 |
Exercised (in shares) | (1,103,054) | (738,635) | (978,193) |
Canceled (in shares) | (60,433) | (42,154) | (47,146) |
Options Outstanding, Ending Balance (in shares) | 6,531,250 | 6,785,812 | 6,685,551 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Beginning Balance (in dollars per share) | $ 34.93 | $ 32.60 | $ 30.09 |
Granted (in dollars per share) | 58.02 | 45.70 | 42.65 |
Exercised (in dollars per share) | 25.07 | 26.47 | 24.04 |
Canceled (in dollars per share) | 50.57 | 39.52 | 36.51 |
Weighted Average Exercise Price, Ending Balance (in dollars per share) | $ 39.66 | $ 34.93 | $ 32.60 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of Information Concerning Outstanding And Exercisable Options) (Details) - $ / shares | 12 Months Ended | |||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding (in shares) | 6,531,250 | 6,785,812 | 6,685,551 | 6,822,390 |
Weighted average remaining contractual life (in years) | 5 years 7 months 6 days | |||
Weighted average exercise price (in dollars per share) | $ 39.66 | |||
Number exercisable (in shares) | 4,819,812 | |||
Weighted average exercise price (in dollars per share) | $ 35.48 | |||
$16.91 to $32.49 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding (in shares) | 1,493,111 | |||
Weighted average remaining contractual life (in years) | 3 years 10 months 24 days | |||
Weighted average exercise price (in dollars per share) | $ 27.46 | |||
Number exercisable (in shares) | 1,493,111 | |||
Weighted average exercise price (in dollars per share) | $ 27.46 | |||
Stock options, exercise price range, lower range limit (in dollars per share) | 16.91 | |||
Share options, exercise price range, upper range limit (in dollars per share) | $ 32.49 | |||
$32.50 to $37.49 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding (in shares) | 1,211,064 | |||
Weighted average remaining contractual life (in years) | 3 years | |||
Weighted average exercise price (in dollars per share) | $ 34.41 | |||
Number exercisable (in shares) | 1,211,064 | |||
Weighted average exercise price (in dollars per share) | $ 34.41 | |||
Stock options, exercise price range, lower range limit (in dollars per share) | 32.5 | |||
Share options, exercise price range, upper range limit (in dollars per share) | $ 37.49 | |||
$37.50 to $42.49 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding (in shares) | 1,283,417 | |||
Weighted average remaining contractual life (in years) | 5 years 2 months 12 days | |||
Weighted average exercise price (in dollars per share) | $ 40.30 | |||
Number exercisable (in shares) | 1,239,817 | |||
Weighted average exercise price (in dollars per share) | $ 40.23 | |||
Stock options, exercise price range, lower range limit (in dollars per share) | 37.5 | |||
Share options, exercise price range, upper range limit (in dollars per share) | $ 42.49 | |||
$42.50 to $47.49 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding (in shares) | 1,653,643 | |||
Weighted average remaining contractual life (in years) | 7 years 7 months 6 days | |||
Weighted average exercise price (in dollars per share) | $ 44 | |||
Number exercisable (in shares) | 840,920 | |||
Weighted average exercise price (in dollars per share) | $ 43.56 | |||
Stock options, exercise price range, lower range limit (in dollars per share) | 42.5 | |||
Share options, exercise price range, upper range limit (in dollars per share) | $ 47.49 | |||
$47.50 and above | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Number outstanding (in shares) | 890,015 | |||
Weighted average remaining contractual life (in years) | 9 years | |||
Weighted average exercise price (in dollars per share) | $ 58.27 | |||
Number exercisable (in shares) | 34,900 | |||
Weighted average exercise price (in dollars per share) | $ 52.08 | |||
Stock options, exercise price range, lower range limit (in dollars per share) | $ 47.5 |
Stock-Based Compensation (Statu
Stock-Based Compensation (Status For Options Which Contain Vesting Provisions) (Details) - $ / shares | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance, Options, Non-vested (in shares) | 1,741,316 | ||
Granted (in shares) | 908,925 | ||
Vested (in shares) | (890,816) | ||
Canceled (in shares) | (47,987) | ||
Ending Balance, Options, Non-vested (in shares) | 1,711,438 | 1,741,316 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Beginning Balance, Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ 9.20 | ||
Granted (in dollars per share) | 12.27 | ||
Vested (in dollars per share) | 8.70 | ||
Canceled (in dollars per share) | 10.09 | ||
Ending Balance, Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ 11.06 | $ 9.20 | |
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance, Options, Non-vested (in shares) | 174,900 | ||
Granted (in shares) | 100,200 | ||
Vested (in shares) | (101,000) | ||
Canceled (in shares) | 0 | ||
Ending Balance, Options, Non-vested (in shares) | 174,100 | 174,900 | |
Weighted Average Number of Shares Outstanding Reconciliation [Abstract] | |||
Beginning Balance, Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ 40.79 | ||
Granted (in dollars per share) | 58.35 | $ 45.43 | $ 37.39 |
Vested (in dollars per share) | 37.39 | ||
Canceled (in dollars per share) | 0 | ||
Ending Balance, Weighted Average Grant Date Fair Value, Outstanding (in dollars per share) | $ 52.87 | $ 40.79 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Millions | 12 Months Ended | |||
Jul. 31, 2020USD ($) | Jul. 31, 2019USD ($)pension_plan | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of U.S. pension plan types | pension_plan | 2 | |||
Defined contribution plan, annual retirement contributions, percent | 3.00% | |||
Deferred compensation arrangement with individual, maximum future deferred receipts allowed | 75.00% | |||
Deferred compensation arrangement with individual, recorded liability | $ 5 | $ 5.7 | ||
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net underfunded status | 18.2 | 1.9 | ||
Unrealized losses recognized | 152 | 130.8 | ||
Loss anticipated to be recognized in net periodic pension expense | 6.4 | |||
Accumulated benefit obligation | 499.1 | 469.3 | ||
Projected benefit obligation for pension plans with projected benefit obligations in excess of plan assets | 190.6 | 68.4 | ||
Fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets | 165.6 | 50.3 | ||
Projected benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets | 135 | 18.7 | ||
Accumulated benefit obligation for plans with projected benefit obligations in excess of plan assets | 133.2 | 16.9 | ||
Fair value of plan assets for plans with projected benefit obligations in excess of plan assets | 122.5 | 6.2 | ||
Company contributions | $ 10.4 | 37.6 | ||
Pension Plan | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Percentage of fund held in other collective investment vehicles | 100.00% | |||
Pension Plan | Private equity and other funds | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Strategic asset allocation, fixed income securities, minimum | 80.00% | |||
Strategic asset allocation, fixed income securities, maximum | 90.00% | |||
Pension Plan | Equity Securities | Level 3 | Maximum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension plan target allocation percentage | 20.00% | |||
Pension Plan | Equity Securities | Level 3 | Minimum | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Pension plan target allocation percentage | 10.00% | |||
Pension Plan | Non - U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term rate of return on plan assets | 3.76% | |||
Company contributions | $ 0.9 | |||
Expected future employer contributions | 1.1 | |||
Pension Plan | Non - U.S. Plan | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unrealized losses recognized | $ (3.5) | 4 | $ (1.2) | |
Pension Plan | U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Long-term rate of return on plan assets | 6.08% | |||
Company contributions | $ 1.4 | |||
Expected future employer contributions | 4.4 | |||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 8 | |||
Retirement Savings and Employee Stock Ownership Plan | U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined contribution plan, annual retirement contributions, percent | 3.00% | |||
Company contributions | $ 23.5 | $ 22.1 | $ 20.1 | |
Contributory employee saving plan, employee contribution threshold limit from compensation, maximum | 50.00% | |||
Contributory employee saving plan, percentage match of participants, first contributions | 100.00% | |||
Contributory employee saving plan, percentage of participants, first eligible compensation | 3.00% | |||
Contributory employee saving plan, percentage match of participants, second contributions | 50.00% | |||
Contributory employee saving plan, percentage of participants, second eligible compensation | 2.00% | |||
Scenario, Forecast | Pension Plan | U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Company contributions | $ 1.5 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components Of Net Periodic Pension Costs) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 6 | $ 8.1 | $ 8.3 |
Interest cost | 16.4 | 14.8 | 13.5 |
Expected return on assets | (26.5) | (26.2) | (26.4) |
Prior service cost and transition amortization | 0.6 | 0.3 | 0.6 |
Actuarial loss amortization | 4.4 | 4.6 | 7.3 |
Settlement loss | 2.9 | 3.5 | 0 |
Net periodic benefit costs | 3.8 | 5.1 | 3.3 |
Other changes recognized in other comprehensive loss (income): | |||
Net actuarial loss (gain) | 29 | (7.2) | (21.7) |
Amortization of asset obligations | (0.2) | (0.2) | (0.2) |
Amortization of prior service cost | (0.4) | (0.1) | (0.4) |
Amortization of net actuarial loss | (7.3) | (8.1) | (7.3) |
Total recognized in other comprehensive loss (income) | 21.1 | (15.6) | (29.6) |
Total recognized in net periodic benefit costs and other comprehensive loss (income) | $ 24.9 | $ (10.5) | $ (26.3) |
Employee Benefit Plans (Obligat
Employee Benefit Plans (Obligations And Funded Status Of Company's Pension Plans) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Change in projected benefit obligation: | |||
Projected benefit obligation, beginning of year | $ 488.2 | $ 515.1 | |
Service cost | 6 | 8.1 | $ 8.3 |
Interest cost | 16.4 | 14.8 | 13.5 |
Plan amendments | 1.2 | 0 | |
Participant contributions | 0.8 | 0.8 | |
Actuarial loss (gain) | 42.5 | (16.9) | |
Currency exchange rates | (11.2) | 0.5 | |
Settlement | (10.5) | (17.7) | |
Net transfers | 1.2 | 0 | |
Benefits paid | (14.2) | (16.5) | |
Projected benefit obligation, end of year | 520.4 | 488.2 | 515.1 |
Change in fair value of plan assets: | |||
Fair value of plan assets, beginning of year | 486.3 | $ 465.1 | |
Actual return on plan assets | 39.4 | 16.5 | |
Company contributions | 10.4 | 37.6 | |
Participant contributions | 0.8 | 0.8 | |
Currency exchange rates | (11.2) | 0.5 | |
Settlement | (10.5) | (17.7) | |
Net transfers | 1.2 | 0 | |
Benefits paid | (14.2) | (16.5) | |
Fair value of plan assets, end of year | 502.2 | 486.3 | |
Funded status: | |||
Projected benefit obligation in excess of plan assets, end of year | (18.2) | (1.9) | |
Amounts recognized on the Consolidated Balance Sheets consist of: | |||
Other long-term assets | 6.8 | 16.2 | |
Other current liabilities | (1.5) | (1.5) | |
Other long-term liabilities | (23.5) | (16.6) | |
Net recognized liability | $ (18.2) | $ (1.9) |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted-Average Discount Rates In Determining Actuarial Present Value Of Projected Benefit Obligation) (Details) - Pension Plan | Jul. 31, 2019 | Jul. 31, 2018 |
U.S. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percentage) | 3.54% | 4.43% |
Non - U.S. Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (as a percentage) | 1.79% | 2.43% |
Rate of compensation increase (as a percentage) | 2.69% | 2.69% |
Employee Benefit Plans (Assumpt
Employee Benefit Plans (Assumptions Used To Determine Net Periodic Benefit Cost) (Details) - Pension Plan | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.43% | 3.94% | 3.65% |
Expected return on plan assets | 6.25% | 6.58% | 6.90% |
Rate of compensation increase | 2.56% | ||
Non - U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.43% | 2.40% | 2.08% |
Expected return on plan assets | 4.08% | 4.19% | 3.93% |
Rate of compensation increase | 2.69% | 2.70% | 2.69% |
Employee Benefit Plans (Fair Va
Employee Benefit Plans (Fair Value Of Assets Held By U.S. Pension Plans) (Details) - Pension Plan - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 502.2 | $ 486.3 | $ 465.1 |
U.S. Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 344.5 | 330.9 | |
Measured Using NAV Per Share as Practical Expedient | 72.3 | 90 | |
U.S. Plan | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 175.1 | 159.6 | |
U.S. Plan | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 97.1 | 81.3 | |
U.S. Plan | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 4 | 5 | |
Measured Using NAV Per Share as Practical Expedient | 0 | 0 | |
U.S. Plan | Cash and cash equivalents | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3.6 | 4.7 | |
U.S. Plan | Cash and cash equivalents | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0.4 | 0.3 | |
U.S. Plan | Cash and cash equivalents | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Global equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 112.1 | 113.4 | |
Measured Using NAV Per Share as Practical Expedient | 35.8 | 31 | |
U.S. Plan | Global equity securities | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 76.3 | 82.4 | |
U.S. Plan | Global equity securities | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Global equity securities | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Private equity and other funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 191.9 | 153.5 | |
Measured Using NAV Per Share as Practical Expedient | 0 | 0 | |
U.S. Plan | Private equity and other funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 95.2 | 72.5 | |
U.S. Plan | Private equity and other funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 96.7 | 81 | |
U.S. Plan | Private equity and other funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Private equity and other funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 33.1 | 53.7 | |
Measured Using NAV Per Share as Practical Expedient | 33.1 | 53.7 | |
U.S. Plan | Private equity and other funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Private equity and other funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Private equity and other funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Real asset funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 3.4 | 5.3 | |
Measured Using NAV Per Share as Practical Expedient | 3.4 | 5.3 | |
U.S. Plan | Real asset funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Real asset funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | 0 | 0 | |
U.S. Plan | Real asset funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans (Unfunde
Employee Benefit Plans (Unfunded Commitments And Redemption Restrictions) (Details) - U.S. Plan - Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2019 | Jul. 31, 2018 | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Measured Using NAV Per Share as Practical Expedient | $ 72.3 | $ 90 |
Unfunded Commitments | 6.1 | |
Global equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Measured Using NAV Per Share as Practical Expedient | 35.8 | 31 |
Unfunded Commitments | 1.8 | |
Private equity and other funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Measured Using NAV Per Share as Practical Expedient | 33.1 | 53.7 |
Unfunded Commitments | 0 | |
Real asset funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Measured Using NAV Per Share as Practical Expedient | 3.4 | $ 5.3 |
Unfunded Commitments | $ 4.3 | |
Minimum | Global equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 10 days | |
Minimum | Private equity and other funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 60 days | |
Maximum | Global equity securities | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 90 days | |
Maximum | Private equity and other funds | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||
Redemption Notice Period | 90 days |
Employee Benefit Plans (Fair _2
Employee Benefit Plans (Fair Value Of Assets Held By Non-U.S. Pension Plans) (Details) - Pension Plan - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | Jul. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 502.2 | $ 486.3 | $ 465.1 | |
Non - U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 157.7 | 155.4 | ||
Non - U.S. Plan | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 91.7 | 90.7 | ||
Non - U.S. Plan | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 35.2 | 36.1 | ||
Non - U.S. Plan | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 30.8 | 28.6 | $ 34.3 | $ 31.8 |
Cash and cash equivalents | Non - U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0.4 | 0.6 | ||
Cash and cash equivalents | Non - U.S. Plan | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0.4 | 0.6 | ||
Cash and cash equivalents | Non - U.S. Plan | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Cash and cash equivalents | Non - U.S. Plan | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Global equity securities | Non - U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 79.4 | 78.8 | ||
Global equity securities | Non - U.S. Plan | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 79.4 | 78.8 | ||
Global equity securities | Non - U.S. Plan | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Global equity securities | Non - U.S. Plan | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Private equity and other funds | Non - U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 11.9 | 11.3 | ||
Private equity and other funds | Non - U.S. Plan | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 11.9 | 11.3 | ||
Private equity and other funds | Non - U.S. Plan | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Private equity and other funds | Non - U.S. Plan | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Investment funds | Non - U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 35.2 | 36.1 | ||
Investment funds | Non - U.S. Plan | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Investment funds | Non - U.S. Plan | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 35.2 | 36.1 | ||
Investment funds | Non - U.S. Plan | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Insurance contracts | Non - U.S. Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 30.8 | 28.6 | ||
Insurance contracts | Non - U.S. Plan | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Insurance contracts | Non - U.S. Plan | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | 0 | 0 | ||
Insurance contracts | Non - U.S. Plan | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, fair value of plan assets | $ 30.8 | $ 28.6 |
Employee Benefit Plans (Changes
Employee Benefit Plans (Changes In Fair Value Of U.S. Pension Plans' Level 3 Assets) (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Change in fair value of plan assets: | |||
Fair value of plan assets, beginning of year | $ 486.3 | $ 465.1 | |
Unrealized gains (losses) | (152) | $ (130.8) | |
Foreign currency exchange | 11.2 | (0.5) | |
Fair value of plan assets, end of year | 502.2 | 486.3 | |
Non - U.S. Plan | |||
Change in fair value of plan assets: | |||
Fair value of plan assets, beginning of year | 155.4 | ||
Fair value of plan assets, end of year | 157.7 | 155.4 | |
Non - U.S. Plan | Level 3 | |||
Change in fair value of plan assets: | |||
Fair value of plan assets, beginning of year | 28.6 | 34.3 | 31.8 |
Unrealized gains (losses) | 3.5 | (4) | 1.2 |
Foreign currency exchange | (1.5) | 0.2 | 1.7 |
Purchases | 0.5 | 0.5 | 1 |
Sales | (0.3) | (2.4) | (1.4) |
Fair value of plan assets, end of year | $ 30.8 | $ 28.6 | $ 34.3 |
Employee Benefit Plans (Pension
Employee Benefit Plans (Pension Plan Target Allocation) (Details) - Pension Plan | Jul. 31, 2019 |
Salaried Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 100.00% |
Salaried Pension Plan | Global equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 33.00% |
Salaried Pension Plan | Private equity and other funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 65.00% |
Salaried Pension Plan | Real asset funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 1.00% |
Salaried Pension Plan | Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 1.00% |
Hourly Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 100.00% |
Hourly Pension Plan | Global equity securities | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 37.00% |
Hourly Pension Plan | Private equity and other funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 60.00% |
Hourly Pension Plan | Real asset funds | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 2.00% |
Hourly Pension Plan | Cash and cash equivalents | |
Defined Benefit Plan Disclosure [Line Items] | |
Pension plan target allocation percentage | 1.00% |
Employee Benefit Plans (Estimat
Employee Benefit Plans (Estimated Future Benefit Payments For U.S. And Non U.S. Plans) (Details) $ in Millions | Jul. 31, 2019USD ($) |
Retirement Benefits, Description [Abstract] | |
2020 | $ 29.6 |
2021 | 27.5 |
2022 | 28.5 |
2023 | 27.3 |
2024 | 26.2 |
2025-2029 | $ 139.9 |
Income Taxes (Components Of Ear
Income Taxes (Components Of Earnings Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Earnings before income taxes: | |||
United States | $ 127.4 | $ 103.2 | $ 109.8 |
Foreign | 247.8 | 260.4 | 212.2 |
Earnings before income taxes | $ 375.2 | $ 363.6 | $ 322 |
Income Taxes (Components Of The
Income Taxes (Components Of The Provision For Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Current | |||
Federal | $ 21.3 | $ 100 | $ 38.9 |
State | 4 | 5.3 | 4.3 |
Foreign | 72.5 | 71 | 56.6 |
Income tax provision (benefit), current | 97.8 | 176.3 | 99.8 |
Deferred | |||
Federal | 7.4 | 6.5 | (7.7) |
State | 1.4 | 0.2 | (0.4) |
Foreign | 1.4 | 0.3 | (2.5) |
Income tax provision (benefit), deferred | 10.2 | 7 | (10.6) |
Total | $ 108 | $ 183.3 | $ 89.2 |
Income Taxes (Schedule Of Recon
Income Taxes (Schedule Of Reconciliation Of U.S. Statutory Income Tax Rate With Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal rate (percentage) | 21.00% | 26.90% | 35.00% |
State income taxes (percentage) | 1.30% | 0.90% | 0.90% |
Foreign operations (percentage) | 4.70% | 1.70% | (8.30%) |
Global Intangible Low Tax Income (GILTI) (percentage) | 1.30% | ||
Foreign Derived Intangible Income (FDII) (percentage) | (1.40%) | ||
Export, manufacturing and research credits (percentage) | (0.80%) | (1.00%) | (1.10%) |
Change in unrecognized tax benefits (percentage) | (0.80%) | (0.30%) | 1.00% |
Tax benefits on stock-based compensation (percentage) | (1.60%) | (1.20%) | |
Impact of U.S. Tax Cuts and Jobs Act (percentage) | 5.00% | 23.20% | |
Other (percentage) | 0.10% | 0.20% | 0.20% |
Effective income tax rate (percentage) | 28.80% | 50.40% | 27.70% |
Income Taxes (Schedule Of Tempo
Income Taxes (Schedule Of Temporary Differences That Give Rise To Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2017 |
Deferred tax assets: | ||
Accrued expenses | $ 10.1 | $ 13.2 |
Compensation and retirement plans | 27.9 | 29.6 |
NOL and tax credit carryforwards | 4.4 | 7.2 |
LIFO and inventory reserves | 3 | 2.3 |
Other | 4.5 | 3.6 |
Gross deferred tax assets | 49.9 | 55.9 |
Valuation allowance | (4.4) | (6.2) |
Deferred tax assets, net of valuation allowance | 45.5 | 49.7 |
Deferred tax liabilities: | ||
Depreciation and amortization | (43.2) | (33.6) |
Other | (1.4) | (1.1) |
Deferred tax liabilities | (44.6) | (34.7) |
Net deferred tax asset | $ 0.9 | $ 15 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal rate (percentage) | 21.00% | 26.90% | 35.00% |
Finalized discrete tax charge on repatriated earnings | $ 111.9 | ||
Discrete tax charge on repatriated earnings | $ 94.5 | ||
Tax charge related to dividends | 17.2 | ||
Net tax charge | 0.3 | ||
Transition tax not due within 12 months | 93.8 | ||
TCJA tax benefit | 1.2 | ||
TCJA tax benefit related to dividends | 2.2 | ||
Total dividends received deduction benefit | 3.4 | ||
Undistributed earnings | 1,200 | ||
Undistributed earnings not considered reinvested | 930 | ||
Undistributed earnings tax charge | 6.4 | ||
Undistributed earnings considered reinvested | 280 | ||
Interest expense recognized | 0.5 | ||
Gross accrued interest and penalties | 1.6 | $ 1.7 | |
Unrecognized tax benefits | $ 1.7 |
Income Taxes (Schedule Of Rec_2
Income Taxes (Schedule Of Reconciliation Of Beginning And Ending Amount Of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Reconciliation of the Beginning and Ending Amounts of Gross Unrecognized Tax Benefits [Roll Forward] | |||
Gross unrecognized tax benefits at beginning of fiscal year | $ 18.5 | $ 18.8 | $ 15.7 |
Additions for tax positions of the current year | 2.5 | 4.4 | 3.9 |
Additions for tax positions of prior years | 0.7 | 0.2 | 0.1 |
Reductions for tax positions of prior years | (4.9) | (3.1) | (0.1) |
Settlements | 0 | 0.3 | |
Settlements | (0.4) | ||
Reductions due to lapse of applicable statute of limitations | (1.3) | (1.4) | (1.1) |
Gross unrecognized tax benefits at end of fiscal year | $ 15.5 | $ 18.5 | $ 18.8 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Millions | Jul. 31, 2019EUR (€) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jul. 31, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Notional amount | $ 84 | $ 19.3 | ||
Level 2 | Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | 281.5 | $ 263.3 | ||
Long-term debt, carrying value | 275 | 275 | ||
Level 3 | ||||
Debt Instrument [Line Items] | ||||
Carrying value of equity method investments | 23 | $ 21.7 | ||
Net investment hedge | ||||
Debt Instrument [Line Items] | ||||
Notional amount | $ 55.8 | $ 0 | ||
Net investment hedge | Cross-currency swap | ||||
Debt Instrument [Line Items] | ||||
Notional amount | € | € 50,000,000 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Of Outstanding Derivatives In Consolidated Balance Sheets) (Details) - USD ($) $ in Millions | Jul. 31, 2019 | Jul. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional Amounts | $ 84 | $ 19.3 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 2.7 | 0.7 |
Liabilities | (3.7) | (1) |
Forward foreign currency exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional Amounts | 28.2 | 19.3 |
Forward foreign currency exchange contracts | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 1.6 | 0.7 |
Liabilities | (1.8) | (1) |
Net investment hedge | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Notional Amounts | 55.8 | 0 |
Net investment hedge | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets | 1.1 | 0 |
Liabilities | $ (1.9) | $ 0 |
Fair Value Measurements (Pre-ta
Fair Value Measurements (Pre-tax Impact of the Gains and Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gains (Losses) Recognized in Accumulated Other Comprehensive income (loss): | $ (0.8) | ||
Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss): | (0.1) | ||
Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss): | $ 0 | $ 0 | |
Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss) | 0 | ||
Forward foreign currency exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Pre-tax Gains (Losses) Recognized in Accumulated Other Comprehensive income (loss): | 0.2 | 3.2 | (2.4) |
Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss): | $ 0.1 | ||
Pre-tax (Gains) Losses Reclassified from Accumulated Other Comprehensive income (loss): | $ 0.2 | $ (1.4) |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 26, 2019 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | May 31, 2019 |
Class of Stock [Line Items] | |||||
Number of shares authorized to be repurchased (in shares) | 13,000,000 | ||||
Remaining number of shares authorized to be repurchased (in shares) | 12,800,000 | ||||
Purchase of treasury stock | $ 129.2 | $ 122 | $ 140.4 | ||
Cash dividend declared per common share (in dollars per share) | $ 0.210 | $ 0.8 | $ 0.74 | $ 0.71 | |
Treasury Stock | |||||
Class of Stock [Line Items] | |||||
Stock repurchases (in shares) | 2,636,554 | 2,642,690 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule Of Treasury Stock) (Details) - shares | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Schedule of Treasury Shares Activity [Roll Forward] | |||
Beginning balance (in shares) | 22,871,145 | ||
Net issuance upon exercise of stock options (in shares) | (1,103,054) | (738,635) | (978,193) |
Ending balance (in shares) | 24,324,483 | 22,871,145 | |
Treasury Stock | |||
Schedule of Treasury Shares Activity [Roll Forward] | |||
Beginning balance (in shares) | 22,871,145 | 21,037,353 | |
Stock repurchases (in shares) | 2,636,554 | 2,642,690 | |
Net issuance upon exercise of stock options (in shares) | (1,057,604) | (723,677) | |
Issuance under compensation plans (in shares) | (104,483) | (78,304) | |
Other activity (in shares) | (21,129) | (6,917) | |
Ending balance (in shares) | 24,324,483 | 22,871,145 | 21,037,353 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | $ 857.8 | $ 854.5 | $ 771.4 |
Net other comprehensive (loss) income | (43.1) | 7.2 | 48.6 |
Ending Balance | 892.7 | 857.8 | 854.5 |
Foreign currency translation adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (66.1) | (58.8) | |
Other comprehensive (loss) income before reclassifications and tax | (26.6) | (7.3) | |
Tax benefit (expense) | 0 | 0 | |
Other comprehensive (loss) income before reclassifications, net of tax | (26.6) | (7.3) | |
Reclassifications, before tax | 0 | 0 | |
Tax benefit (expense) | 0 | 0 | |
Reclassifications, net of tax | 0 | 0 | |
Net other comprehensive (loss) income | (26.6) | (7.3) | |
Ending Balance | (92.7) | (66.1) | (58.8) |
Pension benefits | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (82.9) | (95.1) | |
Other comprehensive (loss) income before reclassifications and tax | (16.3) | 11.4 | |
Tax benefit (expense) | 4.1 | (3) | |
Other comprehensive (loss) income before reclassifications, net of tax | (12.2) | 8.4 | |
Reclassifications, before tax | (4.8) | 5.5 | |
Tax benefit (expense) | 0.9 | (1.7) | |
Reclassifications, net of tax | (3.9) | 3.8 | |
Net other comprehensive (loss) income | (16.1) | 12.2 | |
Ending Balance | (99) | (82.9) | (95.1) |
Derivative financial instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (0.8) | ||
Other comprehensive (loss) income before reclassifications and tax | (0.6) | ||
Tax benefit (expense) | 0.1 | ||
Other comprehensive (loss) income before reclassifications, net of tax | (0.5) | ||
Reclassifications, before tax | 0.1 | ||
Tax benefit (expense) | 0 | ||
Reclassifications, net of tax | 0.1 | ||
Net other comprehensive (loss) income | (0.4) | ||
Ending Balance | (1.2) | (0.8) | |
Derivative financial instruments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (0.8) | (3.1) | |
Other comprehensive (loss) income before reclassifications and tax | 3.2 | ||
Tax benefit (expense) | (1.1) | ||
Other comprehensive (loss) income before reclassifications, net of tax | 2.1 | ||
Reclassifications, before tax | 0.2 | ||
Tax benefit (expense) | 0 | ||
Reclassifications, net of tax | 0.2 | ||
Net other comprehensive (loss) income | 2.3 | ||
Ending Balance | (0.8) | (3.1) | |
Total | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning Balance | (149.8) | (157) | (205.6) |
Other comprehensive (loss) income before reclassifications and tax | (43.5) | 7.3 | |
Tax benefit (expense) | 4.2 | (4.1) | |
Other comprehensive (loss) income before reclassifications, net of tax | (39.3) | 3.2 | |
Reclassifications, before tax | (4.7) | 5.7 | |
Tax benefit (expense) | 0.9 | (1.7) | |
Reclassifications, net of tax | (3.8) | 4 | |
Net other comprehensive (loss) income | (43.1) | 7.2 | |
Ending Balance | $ (192.9) | $ (149.8) | $ (157) |
Guarantees (Details)
Guarantees (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Guarantor Obligations [Line Items] | |||||||||||
Net sales | $ 726,900,000 | $ 712,800,000 | $ 703,700,000 | $ 701,400,000 | $ 724,700,000 | $ 700,000,000 | $ 664,700,000 | $ 644,800,000 | $ 2,844,900,000 | $ 2,734,200,000 | $ 2,371,900,000 |
Letters of credit contingent liability | 11,000,000 | 8,200,000 | 11,000,000 | 8,200,000 | |||||||
Amount drawn on letters of credit | 0 | 0 | 0 | 0 | |||||||
Advanced Filtration Systems Inc. | |||||||||||
Guarantor Obligations [Line Items] | |||||||||||
Long-term debt, carrying value | $ 38,800,000 | $ 35,500,000 | 38,800,000 | 35,500,000 | |||||||
Equity method investment, equity in earnings (losses) | (300,000) | 1,300,000 | 2,100,000 | ||||||||
Royalty | Advanced Filtration Systems Inc. | |||||||||||
Guarantor Obligations [Line Items] | |||||||||||
Net sales | $ 6,500,000 | $ 7,000,000 | $ 5,900,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating lease, rent expense | $ 30.8 | $ 35.2 | $ 28.7 |
Future Minimum Lease Payments Under Operating Leases | |||
2020 | 24 | ||
2021 | 17.5 | ||
2022 | 11.3 | ||
2023 | 6.4 | ||
2024 | 4.6 | ||
Thereafter | 19 | ||
Total future minimum lease payments | $ 82.8 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 12 Months Ended |
Jul. 31, 2019segment | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Summary Of S
Segment Reporting (Summary Of Segment Detail) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,844.9 | $ 2,734.2 | $ 2,371.9 |
Equity earnings in unconsolidated affiliates | 2.2 | 3.6 | 5 |
Earnings (loss) before income taxes | 375.2 | 363.6 | 322 |
Equity investments in unconsolidated affiliates | 23 | 21.7 | 19 |
Engine Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,926 | 1,849 | 1,553.3 |
Industrial Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 918.9 | 885.2 | 818.6 |
Operating Segments | Engine Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,926 | 1,849 | 1,553.3 |
Equity earnings in unconsolidated affiliates | 2.1 | 3.7 | 4.4 |
Earnings (loss) before income taxes | 254.6 | 258.8 | 218.4 |
Equity investments in unconsolidated affiliates | 19 | 17.8 | 14.8 |
Operating Segments | Industrial Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 918.9 | 885.2 | 818.6 |
Equity earnings in unconsolidated affiliates | 0.1 | (0.1) | 0.6 |
Earnings (loss) before income taxes | 140.1 | 135.5 | 128.5 |
Equity investments in unconsolidated affiliates | 4 | 3.9 | 4.2 |
Corporate and Unallocated | |||
Segment Reporting Information [Line Items] | |||
Earnings (loss) before income taxes | $ (19.5) | $ (30.7) | $ (24.9) |
Segment Reporting (Net Sales By
Segment Reporting (Net Sales By Product Within Engine Products Segment And Industrial Products Segment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,844.9 | $ 2,734.2 | $ 2,371.9 |
Engine Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,926 | 1,849 | 1,553.3 |
Engine Products | Off-Road | |||
Segment Reporting Information [Line Items] | |||
Net sales | 315.1 | 327.4 | 252.1 |
Engine Products | On-Road | |||
Segment Reporting Information [Line Items] | |||
Net sales | 179.8 | 154.2 | 110.7 |
Engine Products | Aftermarket | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,315.3 | 1,261.9 | 1,086.2 |
Engine Products | Aerospace and Defense | |||
Segment Reporting Information [Line Items] | |||
Net sales | 115.8 | 105.5 | 104.3 |
Industrial Products | |||
Segment Reporting Information [Line Items] | |||
Net sales | 918.9 | 885.2 | 818.6 |
Industrial Products | Industrial Filtration Solutions | |||
Segment Reporting Information [Line Items] | |||
Net sales | 641.8 | 594.3 | 533.2 |
Industrial Products | Gas Turbine Systems | |||
Segment Reporting Information [Line Items] | |||
Net sales | 106.3 | 115.5 | 122.9 |
Industrial Products | Special Applications | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 170.8 | $ 175.4 | $ 162.5 |
Segment Reporting (Geographic S
Segment Reporting (Geographic Sales By Origination And Property, Plant And Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 2,844.9 | $ 2,734.2 | $ 2,371.9 |
Property, Plant and Equipment, Net | 588.9 | 509.3 | 484.6 |
United States | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1,192.6 | 1,120.8 | 990.4 |
Property, Plant and Equipment, Net | 231 | 188.1 | 193.5 |
Europe, Middle East and Africa | |||
Segment Reporting Information [Line Items] | |||
Net sales | 826.8 | 791.5 | 679.1 |
Property, Plant and Equipment, Net | 199.1 | 181.1 | 170 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Net sales | 597.9 | 599.2 | 500.5 |
Property, Plant and Equipment, Net | 50.2 | 53.4 | 55.3 |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Net sales | 227.6 | 222.7 | 201.9 |
Property, Plant and Equipment, Net | $ 108.6 | $ 86.7 | $ 65.8 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 31, 2019 | Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2019 | Jul. 31, 2018 | Jul. 31, 2017 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 726.9 | $ 712.8 | $ 703.7 | $ 701.4 | $ 724.7 | $ 700 | $ 664.7 | $ 644.8 | $ 2,844.9 | $ 2,734.2 | $ 2,371.9 |
Gross profit | 243.8 | 240.7 | 225.4 | 238.4 | 252.8 | 239.8 | 218.9 | 224.3 | 948.3 | 935.8 | 820.9 |
Net earnings (loss) | $ 58 | $ 75.2 | $ 60.1 | $ 73.8 | $ 102.4 | $ 69.9 | $ (52.9) | $ 60.9 | $ 267.2 | $ 180.3 | $ 232.8 |
Net earnings (loss) per share – basic (in dollars per share) | $ 0.45 | $ 0.59 | $ 0.47 | $ 0.57 | $ 0.79 | $ 0.54 | $ (0.40) | $ 0.47 | $ 2.08 | $ 1.38 | $ 1.76 |
Net earnings (loss) per share – diluted (in dollars per share) | 0.45 | 0.58 | 0.46 | 0.56 | 0.78 | 0.53 | (0.40) | 0.46 | $ 2.05 | $ 1.36 | $ 1.74 |
Dividends paid per share (in dollars per share) | $ 0.21 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.19 | $ 0.18 | $ 0.18 | $ 0.18 |