Cover Page
Cover Page - shares | 3 Months Ended | |
Oct. 31, 2021 | Nov. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-7891 | |
Entity Registrant Name | DONALDSON COMPANY, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-0222640 | |
Entity Address, Address Line One | 1400 West 94th Street | |
Entity Address, City or Town | Minneapolis | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55431 | |
City Area Code | 952 | |
Local Phone Number | 887-3131 | |
Title of each class | Common Stock, $5.00 par value | |
Trading Symbol(s) | DCI | |
Name of each exchange on which registered | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 123,532,038 | |
Entity Central Index Key | 0000029644 | |
Current Fiscal Year End Date | --07-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Income Statement [Abstract] | ||
Net sales | $ 760.9 | $ 636.6 |
Cost of sales | 503.9 | 413.9 |
Gross profit | 257 | 222.7 |
Operating expenses | 149.5 | 135.5 |
Operating income | 107.5 | 87.2 |
Interest expense | 3.4 | 3.5 |
Other expense, net | 0 | 1.5 |
Earnings before income taxes | 104.1 | 82.2 |
Income taxes | 27 | 20.3 |
Net earnings | $ 77.1 | $ 61.9 |
Weighted average shares - basic (in shares) | 124.4 | 126.8 |
Weighted average shares - diluted (in shares) | 126.3 | 128 |
Net earnings per share - basic (in usd per share) | $ 0.62 | $ 0.49 |
Net earnings per share - diluted (in usd per share) | $ 0.61 | $ 0.48 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 77.1 | $ 61.9 |
Other comprehensive (loss) income: | ||
Foreign currency translation loss | (10.5) | (5) |
Pension liability adjustment, net of deferred taxes of $(0.5) and $(1.5), respectively | 2 | 6.1 |
Derivatives: | ||
Gains on hedging derivatives, net of deferred taxes of $(0.2) and $0.0, respectively | 1 | 0.3 |
Reclassifications of losses (gains) on hedging derivatives to net earnings, net of taxes of $(0.3) and $(0.2), respectively | 0.3 | (0.2) |
Total derivatives | 1.3 | 0.1 |
Net other comprehensive (loss) income | (7.2) | 1.2 |
Comprehensive income | $ 69.9 | $ 63.1 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Deferred taxes on pension liability | $ (0.5) | $ (1.5) |
Deferred taxes on hedging derivatives | (0.2) | 0 |
Taxes on reclassifications of derivatives to net income | $ (0.3) | $ (0.2) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 200.8 | $ 222.8 |
Accounts receivable, less allowances of $6.6 and $7.0, respectively | 545.1 | 552.7 |
Inventories, net | 444.7 | 384.5 |
Prepaid expenses and other current assets | 105.2 | 84 |
Total current assets | 1,295.8 | 1,244 |
Property, plant and equipment, net | 609.7 | 617.8 |
Goodwill | 320.6 | 322.5 |
Intangible assets, net | 59.2 | 61.6 |
Other long-term assets | 153.2 | 154.3 |
Total assets | 2,438.5 | 2,400.2 |
Current liabilities: | ||
Short-term borrowings | 41.2 | 48.5 |
Accounts payable | 310 | 293.9 |
Accrued employee compensation and related taxes | 108.6 | 126.8 |
Dividend payable | 0 | 27.6 |
Other current liabilities | 122.1 | 109.8 |
Total current liabilities | 581.9 | 606.6 |
Long-term debt | 548.1 | 461 |
Non-current income taxes payable | 81.1 | 80.7 |
Deferred income taxes | 26.5 | 26.6 |
Other long-term liabilities | 85 | 88.2 |
Total liabilities | 1,322.6 | 1,263.1 |
Stockholders’ 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 |
Additional paid-in capital | 12.3 | 5.8 |
Retained earnings | 1,685.9 | 1,608.4 |
Stock-based compensation plans | 14.5 | 12.8 |
Accumulated other comprehensive loss | (125.4) | (118.2) |
Treasury stock, 28,133,757 and 26,620,560 shares, respectively, at cost | (1,229.6) | (1,129.9) |
Total stockholders’ equity | 1,115.9 | 1,137.1 |
Total liabilities and stockholders’ equity | $ 2,438.5 | $ 2,400.2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 6.6 | $ 7 |
Preferred stock, par value (in usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in usd 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) | 28,133,757 | 26,620,560 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Operating Activities | ||
Net earnings | $ 77.1 | $ 61.9 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 23.8 | 23.3 |
Deferred income taxes | 0.8 | (2.9) |
Stock-based compensation expense | 9 | 6.3 |
Other, net | 2.7 | 7.3 |
Changes in operating assets and liabilities | (70.5) | 33 |
Net cash provided by operating activities | 42.9 | 128.9 |
Investing Activities | ||
Purchases of property, plant and equipment | (18.3) | (18.8) |
Net cash used in investing activities | (18.3) | (18.8) |
Financing Activities | ||
Proceeds from long-term debt | 124.5 | 0 |
Repayments of long-term debt | (35) | (40) |
Change in short-term borrowings | (7.3) | (2.8) |
Purchase of treasury stock | (102.9) | (15.6) |
Dividends paid | (27.4) | (26.6) |
Tax withholding payments for stock compensation transactions | (0.2) | (2.2) |
Exercise of stock options | 2.8 | 8.3 |
Net cash used in financing activities | (45.5) | (78.9) |
Effect of exchange rate changes on cash | (1.1) | 2.2 |
(Decrease) increase in cash and cash equivalents | (22) | 33.4 |
Cash and cash equivalents, beginning of period | 222.8 | 236.6 |
Cash and cash equivalents, end of period | 200.8 | 270 |
Supplemental Cash Flow Information | ||
Income taxes paid | 23.2 | 13.2 |
Interest paid | 3.1 | 3.6 |
Supplemental Disclosure of Non-Cash Operating and Investing Transactions | ||
Accrued property, plant and equipment additions | 7.8 | 5 |
Leased assets obtained in exchange for new operating lease liabilities | $ 4.3 | $ 1.2 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Non- Controlling Interest | Stock-Based Compensation Plans | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Jul. 31, 2020 | $ 992.9 | $ 758.2 | $ 0 | $ 1,430 | $ 5.8 | $ 15.9 | $ (184) | $ (1,033) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net earnings | 61.9 | 61.9 | ||||||
Other comprehensive (loss) income | 1.2 | 1.2 | ||||||
Treasury stock acquired | (15.6) | (15.6) | ||||||
Dividends declared | 0.1 | 0.1 | ||||||
Stock compensation and other activity | 12.1 | 2.7 | (0.1) | (2.9) | 12.4 | |||
Ending Balance at Oct. 31, 2020 | 1,052.6 | 758.2 | 2.7 | 1,491.9 | 5.8 | 13 | (182.8) | (1,036.2) |
Beginning Balance at Jul. 31, 2021 | 1,137.1 | 758.2 | 5.8 | 1,608.4 | 0 | 12.8 | (118.2) | (1,129.9) |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net earnings | 77.1 | 77.1 | ||||||
Other comprehensive (loss) income | (7.2) | (7.2) | ||||||
Treasury stock acquired | (102.9) | (102.9) | ||||||
Dividends declared | 0.2 | 0.2 | ||||||
Stock compensation and other activity | 11.6 | 6.5 | 0.2 | 1.7 | 3.2 | |||
Ending Balance at Oct. 31, 2021 | $ 1,115.9 | $ 758.2 | $ 12.3 | $ 1,685.9 | $ 0 | $ 14.5 | $ (125.4) | $ (1,229.6) |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Donaldson Company, Inc. and its subsidiaries (the Company) have been prepared in accordance with generally accepted accounting prin ciples (GAAP) in the United States (U.S.) and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of earnings, comprehensive income, financial position, cash flows and changes in stockholders’ equity have been included and are of a normal recurring nature. Operating results for the three month period ended October 31, 2021 are not necessarily indicative of the results that may be expected for future periods. The year end Condensed Consolidated Balance Sheet information was derived from the Company’s Audited Consolidated Financial Statements but does not include all disclosures required by GAAP. For further information, refer to the Audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s joint ventures are not majority-owned and are accounted for under the equity method. Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The effects of the ongoing Coronavirus (COVID-19) pandemic continue to impact global economic conditions. The Company continues to experience supply chain disruptions, including global logistic challenges, labor constraints and low supplies of steel, petrochemical products and filter media. These disruptions have slowed the Company’s production speed and increased lead times. The Company has undertaken steps to mitigate these negative impacts, such as qualifying additional suppliers. These disruptions impeded the Company’s ability to meet strengthening demand. This dynamic impacted results in the first quarter of fiscal 2022 and is expected to continue throughout fiscal 2022. New Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the Financial Accounting Standards Board’s Accounting Standards Updates (ASUs) issued but not yet adopted. The Company assessed ASUs recently issued and determined that they were either not applicable or were not expected to have a material impact on the Company’s financial reporting. |
Acquisitions
Acquisitions | 3 Months Ended |
Oct. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | AcquisitionsOn November 22, 2021, the Company acquired Solaris Biotechnology (Solaris), headquartered in Porto Mantovano, Italy, with U.S. operations based in Berkeley, California, for approximately €41 million, or $46.2 million. Solaris designs and manufactures bioprocessing equipment, including bioreactors, fermenters and tangential flow filtration systems for use in food and beverage, biotechnology and other life sciences markets. Solaris expects to generate calendar year 2021 sales of approximately €5 million, or $5.6 million, and will be reported within the Company’s Industrial Filtration Solutions business in the Industrial Products segment. Management expects to finalize the purchase accounting by the first quarter of fiscal 2023. |
Revenue
Revenue | 3 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueThe Company recognizes revenue on a wide range of filtration solutions sold to customers in many industries around the globe. Most of the Company’s performance obligations within customer sales contracts are for manufactured filtration systems and replacement parts. The Company also performs limited services and 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, generally disaggregated by location where the customer’s order was placed, were as follows (in millions): Three Months Ended 2021 2020 U.S. and Canada $ 300.8 $ 251.0 Europe, Middle East and Africa (EMEA) 224.6 187.8 Asia Pacific 163.7 144.1 Latin America 71.8 53.7 Total net sales $ 760.9 $ 636.6 See Note 17 for net sales disaggregated by segment. Contract Assets and Liabilities The satisfaction of performance obligations and the resulting recognition of revenue typically correspond 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 other current assets on the Condensed Consolidated Balance Sheets. Contract assets were $18.3 million and $14.9 million as of October 31, 2021 and July 31, 2021, respectively. In other limited circumstances, the customer may make a payment at a time earlier than when revenue is recognized and prior to the satisfaction of performance obligations, resulting in contract liabilities, which are reported in other current liabilities and other long-term liabilities on the Condensed Consolidated Balance Sheets. Contract liabilities were $12.7 million and $12.2 million as of October 31, 2021 and July 31, 2021, 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. |
Inventories, Net
Inventories, Net | 3 Months Ended |
Oct. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Inventories, Net The components of inventories, net were as follows (in millions): October 31, July 31, Raw materials $ 164.0 $ 148.1 Work in process 53.6 43.2 Finished products 227.1 193.2 Total inventories, net $ 444.7 $ 384.5 |
Property Plant and Equipment, N
Property Plant and Equipment, Net | 3 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment, Net | Property Plant and Equipment, Net The components of property, plant and equipment, net were as follows (in millions): October 31, July 31, Land $ 27.2 $ 27.1 Buildings 409.6 410.8 Machinery and equipment 971.2 972.0 Computer software 144.2 144.3 Construction in progress 45.0 40.6 Less accumulated depreciation (987.5) (977.0) Total property, plant and equipment, net $ 609.7 $ 617.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company has allocated goodwill to reporting units within its Engine Products and Industrial Products segments. There were no dispositions or impairment charges recorded during the three months ended October 31, 2021 and 2020. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2021 and did not record any impairment as a result of this assessment. Goodwill by reportable segment was as follows (in millions): Engine Industrial Total Balance as of July 31, 2021 $ 84.7 $ 237.8 $ 322.5 Goodwill acquired — — — Currency translation (0.1) (1.8) (1.9) Balance as of October 31, 2021 $ 84.6 $ 236.0 $ 320.6 Intangible asset classes were as follows (in millions): October 31, 2021 July 31, 2021 Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer relationships $ 107.0 $ (57.8) $ 49.2 $ 107.5 $ (56.4) $ 51.1 Patents, trademarks and technology 24.3 (14.3) 10.0 24.3 (13.8) 10.5 Total intangible assets $ 131.3 $ (72.1) $ 59.2 $ 131.8 $ (70.2) $ 61.6 Amortization expense was $2.2 million and $2.1 million for the three months ended October 31, 2021 and 2020, respectively. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Oct. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt As of October 31, 2021, there was $427.5 million available on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026. In fiscal 2021, the Company entered into an agreement in which the Company would issue and sell two tranches of unsecured senior notes, totaling $150.0 million. The first tranche, received in August 2021, was a $100.0 million 10 year note due 2031 at a fixed interest rate of 2.50%. The second tranche, received in November 2021, was a $50.0 million seven year note due 2028 at a fixed interest rate of 2.12%. Certain debt agreements contain financial covenants related to interest coverage and leverage ratios, as well as other non-financial covenants. As of October 31, 2021, the Company was in compliance with all such covenants. |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. In ternal Revenue Service has completed examinations of the Company’s U.S. federal income tax returns through 2017. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before 2016. As of October 31, 2021, gross unrecognized tax benefits were $19.0 million and accrued interest and penalties on these unrecognized tax benefits were $1.7 million. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income taxes in the Condensed Consolidated Statements of Earnings. The Company estimates that within the next 12 months it is reasonably possible that its uncertain tax positions could decrease by as much as $5.3 million due to lapses in statutes of limitation. The statutes of limitation periods for the Company’s various tax jurisdictions range from two years to 10 years. The Company believes it is remote that any adjustment necessary to the reserve for income taxes over the next 12 months will be material. However, it is possible the ultimate resolution of audits or disputes may result in a material change to the reserve for income taxes, although the quantification of such potential adjustments cannot be made at this time. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares. Diluted net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options and other stock incentive plans. Basic and diluted net earnings per share calculations were as follows (in millions, except per share amounts): Three Months Ended 2021 2020 Net earnings $ 77.1 $ 61.9 Weighted average common shares outstanding Weighted average common shares – basic 124.4 126.8 Dilutive impact of stock-based awards 1.9 1.2 Weighted average common shares – diluted 126.3 128.0 Net earnings per share – basic $ 0.62 $ 0.49 Net earnings per share – diluted $ 0.61 $ 0.48 Stock options excluded from net earnings per share calculation — 1.7 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Oct. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Stockholders’ Equity Share Repurchases The Company’s Board of Directors has authorized the repurchase of up to 13.0 million shares of common stock under the Company’s stock repurchase plan. This repurchase authorization is effective until terminated by the Board of Directors. During the three months ended October 31, 2021, the Company repurchased 1.6 million shares for $102.9 million. As of October 31, 2021, the Company had remaining authorization to repurchase 6.7 million shares under this plan. Dividends Paid and Declared Dividends paid were 22.0 cents and 21.0 cents per share for the three months ended October 31, 2021 and 2020, respectively. On November 19, 2021, the Company’s Board of Directors declared a cash dividend in the amount of 22.0 cents per share, payable December 22, 2021, to stockholders of record as of December 7, 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Oct. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three months ended October 31, 2021 and 2020 were as follows (in millions): Foreign Pension Derivative Total Balance as of July 31, 2021, net of tax $ (44.0) $ (74.7) $ 0.5 $ (118.2) Other comprehensive (loss) income before reclassifications and tax (10.5) — 1.2 (9.3) Tax expense — — (0.2) (0.2) Other comprehensive (loss) income before reclassifications, net of tax (10.5) — 1.0 (9.5) Reclassifications, before tax — 2.5 0.6 3.1 Tax expense — (0.5) (0.3) (0.8) Reclassifications, net of tax — 2.0 0.3 (1) 2.3 Other comprehensive (loss) income, net of tax (10.5) 2.0 1.3 (7.2) Balance as of October 31, 2021, net of tax $ (54.5) $ (72.7) $ 1.8 $ (125.4) Balance as of July 31, 2020, net of tax $ (74.0) $ (110.0) $ — $ (184.0) Other comprehensive (loss) income before reclassifications and tax (5.0) 4.0 (2) 0.3 (0.7) Tax expense — (1.0) — (1.0) Other comprehensive (loss) income before reclassifications, net of tax (5.0) 3.0 0.3 (1.7) Reclassifications, before tax — 3.6 (3) — 3.6 Tax expense — (0.5) (0.2) (0.7) Reclassifications, net of tax — 3.1 (0.2) (1) 2.9 Other comprehensive (loss) income, net of tax (5.0) 6.1 0.1 1.2 Balance as of October 31, 2020, net of tax $ (79.0) $ (103.9) $ 0.1 $ (182.8) (1) Relates to designated forward foreign currency exchange contracts that were reclassified from accumulated other comprehensive loss to other expense, net in the Condensed Consolidated Statements of Earnings, see Note 14. (2) In fiscal 2021, pension curtailment accounting was triggered and the Company recorded a charge of $0.8 million. Remeasurements of the Company’s pension obligations resulted in a decrease to accumulated other comprehensive loss of $4.0 million, see Note 13. (3) Includes net amortization of prior service costs and actuarial losses included in net periodic benefit costs that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings, see Note 13. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all stock-based awards based on the grant date fair value of the award. Stock-based awards consist primarily of non-qualified stock options, performance-based awards, restricted stock awards and restricted stock units. Grants related to restricted stock awards and restricted stock units are immaterial. The Company issues treasury shares for stock options and performance-based awards. Stock Options The exercise price of options granted is equal to the market price of the Company’s common stock at the date of the grant. Options are generally exercisable for up to 10 years from t he date of grant and vest in equal increments over three years. For the three months ended October 31, 2021 and 2020, the Company recorded pretax stock-based compensation expense associated with options of $6.9 million and $5.1 million, respectively. Fair value is calculated using the Black-Scholes option pricing model. The weighted average fair value for options granted during the three months ended October 31, 2021 and 2020 was $14.24 and $10.08 per share, respectively. Option activity was as follows: Options Weighted Balance outstanding as of July 31, 2021 6,444,743 $ 44.05 Granted 834,105 59.40 Exercised (70,555) 38.41 Canceled/forfeited (9,131) 50.21 Balance outstanding as of October 31, 2021 7,199,162 $ 45.88 Performance-Based Awards Performance-based awards are payable in common stock and are based on a formula that measures Company performance over a three year period. These awards are settled after three years with payouts ranging from zero to 200% of the target award value depending on achievement. For the three months ended October 31, 2021 and 2020, the Company recorded pretax performance-based award expense of $1.7 million and $0.9 million, respectively. Performance-based award for non-vested activity was as follows: Performance Shares Weighted Balance outstanding as of July 31, 2021 200,567 $ 48.76 Granted 88,400 59.40 Vested — — Canceled — — Balance outstanding as of October 31, 2021 288,967 $ 52.02 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Oct. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Pension Plans The Company has defined benefit pension plans for many of its hourly and salaried employees. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic benefit cost other than the service cost component are included in other expense, net in the Condensed Consolidated Statements of Earnings. Net periodic pension (benefits) costs for the Company’s pension plans were as follows (in millions): Three Months Ended 2021 2020 Service cost $ 1.8 $ 2.2 Interest cost 2.5 2.4 Expected return on assets (6.3) (5.8) Prior service cost amortization 0.1 0.1 Actuarial loss amortization 1.8 2.2 Curtailment charge — 0.8 Net periodic pension (benefits) costs $ (0.1) $ 1.9 In fiscal 2021, the Company recorded a pension curtailment charge of $0.8 million as a result of freezing the pension benefits to certain employees. The corresponding remeasurement resulted in a decrease in the Company’s pension obligation and an adjustment to other comprehensive income in the Condensed Consolidated Statement of Comprehensive Income of $4.0 million. See Note 11. 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. Future required pension plan contributions may change significantly depending on the actual rate of return on plan assets, discount rates and regulatory requirements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 31, 2021 | |
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. For Level 1, inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities. For 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. For Level 3, inputs to the fair value measurement are unobservable inputs or are based on valuation techniques. Short-Term Financial Instruments As of October 31, 2021 and July 31, 2021, the carrying values of cash and cash equivalents, accounts receivable, short-term borrowings and accounts payable approximate fair value because of the short-term nature of these instruments, and are classified as Level 1 in the fair value hierarchy. Long-Term Debt As of October 31, 2021, the estimated fair values of fixed interest rate long-term debt were $392.3 million compared to the carrying values of $375.0 million. As of July 31, 2021, the estimated fair values of fixed interest rate long-term debt were $297.4 million compared to the carrying values of $275.0 million. The fair values are estimated by discounting the projected cash flows using the interest rates at which similar amounts of debt could currently be borrowed. The carrying values of total variable interest rate long-term debt were $175.7 million a nd $188.3 million as of October 31, 2021 and July 31, 2021, respectively, and approximate their fair values. Long-term debt is cl assified as Level 2 in the fair value hierarchy. Equity Method Investments The Company holds equity method investments in its joint ventures, which are included in other long-term assets on the Condensed Consolidated Balance Sheets. The aggregate carrying amount of these investments was $23.9 million and $24.2 million as of October 31, 2021 and July 31, 2021, respectively. These equity method investments are measured at fair value on a non-recurring basis. The fair value of the Company’s equity method investments has not been adjusted as there have been no triggering events or changes in circumstance that would have had an adverse impact on the value of these investments. In the event that these investments are required to be measured, they 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. Derivative Fair Value Measurements The Company enters into derivative instrument agreements, 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 instrument agreements with counterparties who have highly rated credit. The Company does not enter into derivative instrument agreements for trading or speculative purposes. The fair values of the Company’s forward foreign currency exchange contracts and net investment hedges 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 and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and foreign currency exchange rates. The fair values of the Company’s forward foreign currency exchange contracts and net investment hedges are classified as Level 2 in the fair value hierarchy. Forward Foreign Currency Exchange Contracts The Company buys materials from foreign suppliers. Those transactions can be denominated in those suppliers’ local currency. The Company also sells to customers in foreign countries. Those transactions can be denominated in those customers’ local currency. Both of these transaction types can create volatility in the Company’s financial statements. The Company uses forward currency exchange contracts to manage those exposures and fluctuations. These contracts generally mature in 12 months or less, which is consistent with the forecasts of the rel ated purchases and sales. Certain contracts are designated as cash flow hedges, whereas the remaining contracts, most of which are related to certain intercompany transactions, are not designated. 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. The Company has elected the spot method for designating these contracts as net investment hedges. Fair Value of Derivatives Contracts The fair value of the Company’s derivative contracts, recorded on the Condensed Consolidated Balance Sheets, was as follows (in millions): Total Notional Amounts Assets Liabilities October 31, July 31, October 31, July 31, October 31, July 31, 2021 2021 2021 2021 2021 2021 Designated as hedging instruments Forward foreign currency exchange contracts $ 86.1 $ 117.2 $ 1.8 $ 1.0 $ 1.2 $ 1.2 Net investment hedge 55.8 55.8 1.1 1.1 0.7 2.0 Total designated 141.9 173.0 2.9 2.1 1.9 3.2 Not designated as hedging instruments Forward foreign currency exchange contracts 222.0 154.2 1.6 0.5 0.6 0.4 Total not designated 222.0 154.2 1.6 0.5 0.6 0.4 Total $ 363.9 $ 327.2 $ 4.5 $ 2.6 $ 2.5 $ 3.6 Forward foreign currency exchange contract assets were recorded in other current assets and in other long-term assets on the Condensed Consolidated Balance Sheets. Forward foreign currency exchange contract liabilities were recorded in other current liabilities on the Condensed Consolidated Balance Sheets. The net investment hedge was recorded in other current assets and in other long-term liabilities on the Condensed Consolidated Balance Sheets. Changes in the fair value of the Company’s designated hedges are reported in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets until the related transaction occurs. Designated hedges are recognized as a component of net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings upon occurrence of the related hedged transaction. Hedges which are not designated are recognized in other expense, net in the Condensed Consolidated Statements of Earnings timed to coincide with the related hedged transactions. Changes in the fair value of these hedges are, likewise, recognized in other expense, net in the Condensed Consolidated Statements of Earnings. The Company classifies cash flows from derivatives designated in a qualifying cash flow hedging relationship in the same category as the cash flows from the hedged items. Cash flows from these derivative transactions are recorded in operating activities in the Condensed Consolidated Statements of Cash Flows. Amounts related to forward foreign currency exchange contracts are expected to be reclassified into earnings during the next 12 months based on the timing of inventory purchases and sales. Amounts related to excluded components associated with the net investment hedge are expected to be reclassified into earnings through its termination in July 2029. See Note 11 for additional information on accumulated other comprehensive loss. 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 is a failure under other financing arrangements related to payment terms or covenants. As of October 31, 2021 and July 31, 2021, no collateral was 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 on their credit ratings and certain other financial factors. |
Guarantees
Guarantees | 3 Months Ended |
Oct. 31, 2021 | |
Guarantees [Abstract] | |
Guarantees | Guarantees Letters of Credit The Company has letters of credit which guarantee payment to third parties in the event the Company is in breach of contract terms as detailed in each letter of credit. The outstanding debt contingent liability for standby letters of credit was as follows (in millions): October 31, July 31, Contingent liability for standby letters of credit issued under the Company’s revolving credit facility $ 7.5 $ 7.7 Amounts drawn for letters of credit under the Company’s revolving credit facility $ — $ — Advanced Filtration Systems Inc. (AFSI) The Company has an unconsolidated joint venture, AFSI, established by the Company and Caterpillar Inc. (Caterpillar) in 1986. AFSI designs and manufactures high-efficiency fluid filters used in Caterpillar’s machinery worldwide. The Company and Caterpillar equally own the shares of AFSI, and both companies guaran tee certain debt and banking services, including credit and debit cards, merchant processing and treasury management services, of the joint venture. The Company accounts for AFSI as an equity method investment. The outstanding debt relating to AFSI, which the Company guarantees half, was $38.6 million and $37.8 million as of October 31, 2021 and July 31, 2021, respectively. Earnings from AFSI, which are recorded in other expense, net in the Condensed Consolidated Statements of Earnings were $1.2 million and $2.0 million for the three months ended October 31, 2021 and 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Oct. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company records provisions when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and litigation are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the estimated liability in its Condensed Consolidated Financial Statements for claims or litigation is adequate and appropriate for the probable and estimable outcomes. Liabilities recorded were not material to the Company’s financial position, results of operations or liquidity. 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. Warranty Reserves The Company estimates warranty expense on certain products at the time of sale using quantitative measures based on historical warranty claim experience and evaluation of specific customer warranty issues. There were no individually or collectively material specific warranty matters accrued for, or significant settlements made, during the three months ended October 31, 2021 and 2020. The Company’s accrued warranty reserves were $5.9 million and $6.1 million as of October 31, 2021 and July 31, 2021, respectively. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Oct. 31, 2021 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | Segment Reporting The Company’s reportable segments are Engine Products and Industrial Products. The Company determines its operating segments consistent with the manner in which it manages its operations and evaluates performance for internal review and decision-making. Corporate and unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest expense and certain incentive compensation . 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 earnings before income taxes and other financial information shown below. Segment details were as follows (in millions): Three Months Ended 2021 2020 Net sales Engine Products segment $ 527.2 $ 436.2 Industrial Products segment 233.7 200.4 Total Company $ 760.9 $ 636.6 Earnings before income taxes Engine Products segment $ 72.3 $ 60.4 Industrial Products segment 38.3 27.5 Corporate and unallocated (6.5) (5.7) Total Company $ 104.1 $ 82.2 Net sales by product group were as follows (in millions): Three Months Ended 2021 2020 Engine Products segment Off-Road $ 93.9 $ 64.8 On-Road 31.5 32.0 Aftermarket 374.3 317.0 Aerospace and Defense 27.5 22.4 Total Engine Products segment 527.2 436.2 Industrial Products segment Industrial Filtration Solutions 165.5 135.6 Gas Turbine Systems 16.6 23.0 Special Applications 51.6 41.8 Total Industrial Products segment 233.7 200.4 Total Company $ 760.9 $ 636.6 Concentrations |
Restructuring
Restructuring | 3 Months Ended |
Oct. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringIn the second quarter of fiscal 2021, the Company initiated activities to further improve its operating and manufacturing cost structure, primarily in EMEA. These activities resulted in restructuring expenses, primarily related to severance, of $14.8 million. Charges of $5.8 million were included in cost of sales and $9.0 million were included in operating expenses in the Condensed Consolidated Statements of Earnings for the year ended July 31, 2021. Charges of $2.5 million relate to the Engine Products segment, $6.5 million relate to the Industrial Products segment and $5.8 million relate to corporate and unallocated expenses. For the three months ended October 31, 2021, $2.5 million of the restructuring expenses were paid. As of October 31, 2021, $7.8 million was accrued |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Oct. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Donaldson Company, Inc. and its subsidiaries (the Company) have been prepared in accordance with generally accepted accounting prin ciples (GAAP) in the United States (U.S.) and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of earnings, comprehensive income, financial position, cash flows and changes in stockholders’ equity have been included and are of a normal recurring nature. Operating results for the three month period ended October 31, 2021 are not necessarily indicative of the results that may be expected for future periods. The year end Condensed Consolidated Balance Sheet information was derived from the Company’s Audited Consolidated Financial Statements but does not include all disclosures required by GAAP. For further information, refer to the Audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021. |
Principles of Consolidation | Principles of ConsolidationThe Condensed Consolidated Financial Statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s joint ventures are not majority-owned and are accounted for under the equity method. |
Use of Estimates | Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The effects of the ongoing Coronavirus (COVID-19) pandemic continue to impact global economic conditions. The Company continues to experience supply chain disruptions, including global logistic challenges, labor constraints and low supplies of steel, petrochemical products and filter media. These disruptions have slowed the Company’s production speed and increased lead times. The Company has undertaken steps to mitigate these negative impacts, such as qualifying additional suppliers. These disruptions impeded the Company’s ability to meet strengthening demand. This dynamic impacted results in the first quarter of fiscal 2022 and is expected to continue throughout fiscal 2022. |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the Financial Accounting Standards Board’s Accounting Standards Updates (ASUs) issued but not yet adopted. The Company assessed ASUs recently issued and determined that they were either not applicable or were not expected to have a material impact on the Company’s financial reporting. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Net sales, generally disaggregated by location where the customer’s order was placed, were as follows (in millions): Three Months Ended 2021 2020 U.S. and Canada $ 300.8 $ 251.0 Europe, Middle East and Africa (EMEA) 224.6 187.8 Asia Pacific 163.7 144.1 Latin America 71.8 53.7 Total net sales $ 760.9 $ 636.6 See Note 17 for net sales disaggregated by segment. |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Components of inventory | The components of inventories, net were as follows (in millions): October 31, July 31, Raw materials $ 164.0 $ 148.1 Work in process 53.6 43.2 Finished products 227.1 193.2 Total inventories, net $ 444.7 $ 384.5 |
Property Plant and Equipment,_2
Property Plant and Equipment, Net (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of property, plant and equipment, net were as follows (in millions): October 31, July 31, Land $ 27.2 $ 27.1 Buildings 409.6 410.8 Machinery and equipment 971.2 972.0 Computer software 144.2 144.3 Construction in progress 45.0 40.6 Less accumulated depreciation (987.5) (977.0) Total property, plant and equipment, net $ 609.7 $ 617.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation of goodwill | Goodwill by reportable segment was as follows (in millions): Engine Industrial Total Balance as of July 31, 2021 $ 84.7 $ 237.8 $ 322.5 Goodwill acquired — — — Currency translation (0.1) (1.8) (1.9) Balance as of October 31, 2021 $ 84.6 $ 236.0 $ 320.6 |
Schedule of finite-lived intangible assets | Intangible asset classes were as follows (in millions): October 31, 2021 July 31, 2021 Gross Carrying Amount Accumulated Amortization Total Gross Carrying Amount Accumulated Amortization Total Customer relationships $ 107.0 $ (57.8) $ 49.2 $ 107.5 $ (56.4) $ 51.1 Patents, trademarks and technology 24.3 (14.3) 10.0 24.3 (13.8) 10.5 Total intangible assets $ 131.3 $ (72.1) $ 59.2 $ 131.8 $ (70.2) $ 61.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net earnings per share | Basic and diluted net earnings per share calculations were as follows (in millions, except per share amounts): Three Months Ended 2021 2020 Net earnings $ 77.1 $ 61.9 Weighted average common shares outstanding Weighted average common shares – basic 124.4 126.8 Dilutive impact of stock-based awards 1.9 1.2 Weighted average common shares – diluted 126.3 128.0 Net earnings per share – basic $ 0.62 $ 0.49 Net earnings per share – diluted $ 0.61 $ 0.48 Stock options excluded from net earnings per share calculation — 1.7 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss for the three months ended October 31, 2021 and 2020 were as follows (in millions): Foreign Pension Derivative Total Balance as of July 31, 2021, net of tax $ (44.0) $ (74.7) $ 0.5 $ (118.2) Other comprehensive (loss) income before reclassifications and tax (10.5) — 1.2 (9.3) Tax expense — — (0.2) (0.2) Other comprehensive (loss) income before reclassifications, net of tax (10.5) — 1.0 (9.5) Reclassifications, before tax — 2.5 0.6 3.1 Tax expense — (0.5) (0.3) (0.8) Reclassifications, net of tax — 2.0 0.3 (1) 2.3 Other comprehensive (loss) income, net of tax (10.5) 2.0 1.3 (7.2) Balance as of October 31, 2021, net of tax $ (54.5) $ (72.7) $ 1.8 $ (125.4) Balance as of July 31, 2020, net of tax $ (74.0) $ (110.0) $ — $ (184.0) Other comprehensive (loss) income before reclassifications and tax (5.0) 4.0 (2) 0.3 (0.7) Tax expense — (1.0) — (1.0) Other comprehensive (loss) income before reclassifications, net of tax (5.0) 3.0 0.3 (1.7) Reclassifications, before tax — 3.6 (3) — 3.6 Tax expense — (0.5) (0.2) (0.7) Reclassifications, net of tax — 3.1 (0.2) (1) 2.9 Other comprehensive (loss) income, net of tax (5.0) 6.1 0.1 1.2 Balance as of October 31, 2020, net of tax $ (79.0) $ (103.9) $ 0.1 $ (182.8) (1) Relates to designated forward foreign currency exchange contracts that were reclassified from accumulated other comprehensive loss to other expense, net in the Condensed Consolidated Statements of Earnings, see Note 14. (2) In fiscal 2021, pension curtailment accounting was triggered and the Company recorded a charge of $0.8 million. Remeasurements of the Company’s pension obligations resulted in a decrease to accumulated other comprehensive loss of $4.0 million, see Note 13. (3) Includes net amortization of prior service costs and actuarial losses included in net periodic benefit costs that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings, see Note 13. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Summary of stock option activity | Option activity was as follows: Options Weighted Balance outstanding as of July 31, 2021 6,444,743 $ 44.05 Granted 834,105 59.40 Exercised (70,555) 38.41 Canceled/forfeited (9,131) 50.21 Balance outstanding as of October 31, 2021 7,199,162 $ 45.88 |
Schedule of performance shares activity | Performance-based award for non-vested activity was as follows: Performance Shares Weighted Balance outstanding as of July 31, 2021 200,567 $ 48.76 Granted 88,400 59.40 Vested — — Canceled — — Balance outstanding as of October 31, 2021 288,967 $ 52.02 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |
Components of net periodic pension costs | Net periodic pension (benefits) costs for the Company’s pension plans were as follows (in millions): Three Months Ended 2021 2020 Service cost $ 1.8 $ 2.2 Interest cost 2.5 2.4 Expected return on assets (6.3) (5.8) Prior service cost amortization 0.1 0.1 Actuarial loss amortization 1.8 2.2 Curtailment charge — 0.8 Net periodic pension (benefits) costs $ (0.1) $ 1.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of derivative on the balance sheet | The fair value of the Company’s derivative contracts, recorded on the Condensed Consolidated Balance Sheets, was as follows (in millions): Total Notional Amounts Assets Liabilities October 31, July 31, October 31, July 31, October 31, July 31, 2021 2021 2021 2021 2021 2021 Designated as hedging instruments Forward foreign currency exchange contracts $ 86.1 $ 117.2 $ 1.8 $ 1.0 $ 1.2 $ 1.2 Net investment hedge 55.8 55.8 1.1 1.1 0.7 2.0 Total designated 141.9 173.0 2.9 2.1 1.9 3.2 Not designated as hedging instruments Forward foreign currency exchange contracts 222.0 154.2 1.6 0.5 0.6 0.4 Total not designated 222.0 154.2 1.6 0.5 0.6 0.4 Total $ 363.9 $ 327.2 $ 4.5 $ 2.6 $ 2.5 $ 3.6 |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Guarantees [Abstract] | |
Guarantor obligations | The outstanding debt contingent liability for standby letters of credit was as follows (in millions): October 31, July 31, Contingent liability for standby letters of credit issued under the Company’s revolving credit facility $ 7.5 $ 7.7 Amounts drawn for letters of credit under the Company’s revolving credit facility $ — $ — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Oct. 31, 2021 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Summary of segment details | Segment details were as follows (in millions): Three Months Ended 2021 2020 Net sales Engine Products segment $ 527.2 $ 436.2 Industrial Products segment 233.7 200.4 Total Company $ 760.9 $ 636.6 Earnings before income taxes Engine Products segment $ 72.3 $ 60.4 Industrial Products segment 38.3 27.5 Corporate and unallocated (6.5) (5.7) Total Company $ 104.1 $ 82.2 Net sales by product group were as follows (in millions): Three Months Ended 2021 2020 Engine Products segment Off-Road $ 93.9 $ 64.8 On-Road 31.5 32.0 Aftermarket 374.3 317.0 Aerospace and Defense 27.5 22.4 Total Engine Products segment 527.2 436.2 Industrial Products segment Industrial Filtration Solutions 165.5 135.6 Gas Turbine Systems 16.6 23.0 Special Applications 51.6 41.8 Total Industrial Products segment 233.7 200.4 Total Company $ 760.9 $ 636.6 |
Acquisitions (Details)
Acquisitions (Details) - Subsequent Event € in Millions, $ in Millions | Nov. 22, 2021EUR (€) | Nov. 22, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021USD ($) |
Solaris | Forecast | ||||
Business Acquisition | ||||
Sales | € 5 | $ 5.6 | ||
Solaris | ||||
Business Acquisition | ||||
Business combination, consideration transferred | € 41 | $ 46.2 |
Revenue (Disaggregation of Reve
Revenue (Disaggregation of Revenue by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Disaggregation of Revenue | ||
Total net sales | $ 760.9 | $ 636.6 |
U.S. and Canada | ||
Disaggregation of Revenue | ||
Total net sales | 300.8 | 251 |
Europe, Middle East and Africa (EMEA) | ||
Disaggregation of Revenue | ||
Total net sales | 224.6 | 187.8 |
Asia Pacific | ||
Disaggregation of Revenue | ||
Total net sales | 163.7 | 144.1 |
Latin America | ||
Disaggregation of Revenue | ||
Total net sales | $ 71.8 | $ 53.7 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 18.3 | $ 14.9 |
Contract liabilities | $ 12.7 | $ 12.2 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Inventory, Net | ||
Raw materials | $ 164 | $ 148.1 |
Work in process | 53.6 | 43.2 |
Finished products | 227.1 | 193.2 |
Total inventories, net | $ 444.7 | $ 384.5 |
Property Plant and Equipment,_3
Property Plant and Equipment, Net (Details) - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Property, Plant and Equipment | ||
Less accumulated depreciation | $ (987.5) | $ (977) |
Property, plant and equipment, net | 609.7 | 617.8 |
Land | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 27.2 | 27.1 |
Buildings | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 409.6 | 410.8 |
Machinery and equipment | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 971.2 | 972 |
Computer software | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | 144.2 | 144.3 |
Construction in progress | ||
Property, Plant and Equipment | ||
Property, plant and equipment, gross | $ 45 | $ 40.6 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Reconciliation of Goodwill) (Details) $ in Millions | 3 Months Ended |
Oct. 31, 2021USD ($) | |
Goodwill | |
Beginning balance | $ 322.5 |
Goodwill acquired | 0 |
Currency translation | (1.9) |
Ending balance | 320.6 |
Engine Products segment | |
Goodwill | |
Beginning balance | 84.7 |
Goodwill acquired | 0 |
Currency translation | (0.1) |
Ending balance | 84.6 |
Industrial Products segment | |
Goodwill | |
Beginning balance | 237.8 |
Goodwill acquired | 0 |
Currency translation | (1.8) |
Ending balance | $ 236 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets (Reconciliation of Intangible Assets) (Details) - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | $ 131.3 | $ 131.8 |
Accumulated Amortization | (72.1) | (70.2) |
Total | 59.2 | 61.6 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 107 | 107.5 |
Accumulated Amortization | (57.8) | (56.4) |
Total | 49.2 | 51.1 |
Patents, trademarks and technology | ||
Finite-Lived Intangible Assets | ||
Gross Carrying Amount | 24.3 | 24.3 |
Accumulated Amortization | (14.3) | (13.8) |
Total | $ 10 | $ 10.5 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 2.2 | $ 2.1 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Nov. 30, 2021 | Aug. 31, 2021 | Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Debt Instrument | |||||
Proceeds from long-term debt | $ 124,500,000 | $ 0 | |||
Unsecured Debt | |||||
Debt Instrument | |||||
Debt instrument amount | $ 150,000,000 | ||||
2.5% 10 Year Note Due 2031 | Unsecured Debt | |||||
Debt Instrument | |||||
Proceeds from long-term debt | $ 100,000,000 | ||||
Debt instrument, term | 10 years | ||||
Fixed interest rate | 2.50% | ||||
2.12% 7 Year Note Due 2028 | Unsecured Debt | Subsequent Event | |||||
Debt Instrument | |||||
Proceeds from long-term debt | $ 50,000,000 | ||||
Debt instrument, term | 7 years | ||||
Fixed interest rate | 2.12% | ||||
Unsecured revolving credit facility | Unsecured revolving credit facility | |||||
Debt Instrument | |||||
Remaining borrowing capacity | 427,500,000 | ||||
Maximum borrowing capacity | $ 500,000,000 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended |
Oct. 31, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 19 |
Accrued interest and penalties on unrecognized tax benefits | 1.7 |
Unrecognized reduction from lapse of statute of limitations | $ 5.3 |
Earnings Per Share (Information
Earnings Per Share (Information Necessary to Calculate Basic and Diluted Net Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 77.1 | $ 61.9 |
Weighted average common shares outstanding | ||
Weighted average common shares - basic (in shares) | 124.4 | 126.8 |
Dilutive impact of share-based awards (in shares) | 1.9 | 1.2 |
Weighted average common shares - diluted (in shares) | 126.3 | 128 |
Net earnings per share - basic (in usd per share) | $ 0.62 | $ 0.49 |
Net earnings per share - diluted (in usd per share) | $ 0.61 | $ 0.48 |
Options excluded from the diluted net earnings per share calculation (in shares) | 0 | 1.7 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | Nov. 19, 2021 | Oct. 31, 2021 | Oct. 31, 2020 |
Class of Stock | |||
Number of shares authorized to be repurchased (in shares) | 13,000,000 | ||
Stock repurchased during the period (in shares) | 1,600,000 | ||
Stock repurchased during the period | $ 102.9 | $ 15.6 | |
Shares with remaining authorization for repurchase under stock repurchase plan (in shares) | 6,700,000 | ||
Dividends paid per share (in usd per share) | $ 0.220 | $ 0.210 | |
Subsequent Event | |||
Class of Stock | |||
Dividends, per share (in dollars per share) | $ 0.220 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning Balance | $ 1,137.1 | $ 992.9 | $ 992.9 |
Other comprehensive (loss) income before reclassifications and tax | (9.3) | (0.7) | |
Tax expense | (0.2) | (1) | |
Other comprehensive (loss) income before reclassifications, net of tax | (9.5) | (1.7) | |
Reclassifications, before tax | 3.1 | 3.6 | |
Tax expense | (0.8) | (0.7) | |
Reclassifications, net of tax | 2.3 | 2.9 | |
Net other comprehensive (loss) income | (7.2) | 1.2 | |
Ending Balance | 1,115.9 | 1,052.6 | 1,137.1 |
Curtailment charge | 0.8 | ||
Accumulated other comprehensive loss | (125.4) | (118.2) | |
Scenario, Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Accumulated other comprehensive loss | 4 | ||
Total | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning Balance | (118.2) | (184) | (184) |
Net other comprehensive (loss) income | (7.2) | 1.2 | |
Ending Balance | (125.4) | (182.8) | (118.2) |
Foreign Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning Balance | (44) | (74) | (74) |
Other comprehensive (loss) income before reclassifications and tax | (10.5) | (5) | |
Tax expense | 0 | 0 | |
Other comprehensive (loss) income before reclassifications, net of tax | (10.5) | (5) | |
Reclassifications, before tax | 0 | 0 | |
Tax expense | 0 | 0 | |
Reclassifications, net of tax | 0 | 0 | |
Net other comprehensive (loss) income | (10.5) | (5) | |
Ending Balance | (54.5) | (79) | (44) |
Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning Balance | (74.7) | (110) | (110) |
Other comprehensive (loss) income before reclassifications and tax | 0 | 4 | |
Tax expense | 0 | (1) | |
Other comprehensive (loss) income before reclassifications, net of tax | 0 | 3 | |
Reclassifications, before tax | 2.5 | 3.6 | |
Tax expense | (0.5) | (0.5) | |
Reclassifications, net of tax | 2 | 3.1 | |
Net other comprehensive (loss) income | 2 | 6.1 | |
Ending Balance | (72.7) | (103.9) | (74.7) |
Derivative Financial Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | |||
Beginning Balance | 0.5 | 0 | 0 |
Other comprehensive (loss) income before reclassifications and tax | 1.2 | 0.3 | |
Tax expense | (0.2) | 0 | |
Other comprehensive (loss) income before reclassifications, net of tax | 1 | 0.3 | |
Reclassifications, before tax | 0.6 | 0 | |
Tax expense | (0.3) | (0.2) | |
Reclassifications, net of tax | 0.3 | (0.2) | |
Net other comprehensive (loss) income | 1.3 | 0.1 | |
Ending Balance | $ 1.8 | $ 0.1 | $ 0.5 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Options granted, grant date fair value (in usd per share) | $ 14.24 | $ 10.08 |
Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pretax performance-based award expense | $ 6.9 | $ 5.1 |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Pretax performance-based award expense | $ 1.7 | $ 0.9 |
2019 Master Stock Incentive Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Stock options exercisable term (in years) | 10 years | |
Stock option, award vesting period (in years) | 3 years | |
2019 Master Stock Incentive Plan | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Performance award measurement period (in years) | 3 years | |
Expiration period (in years) | 3 years | |
2019 Master Stock Incentive Plan | Performance Shares | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Payout percentage based on target award (percentage) | 0.00% | |
2019 Master Stock Incentive Plan | Performance Shares | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Payout percentage based on target award (percentage) | 200.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) | 3 Months Ended |
Oct. 31, 2021$ / sharesshares | |
Options | |
Beginning balance (in shares) | shares | 6,444,743 |
Options granted (in shares) | shares | 834,105 |
Options exercised (in shares) | shares | (70,555) |
Options canceled/forfeited (in shares) | shares | (9,131) |
Ending balance (in shares) | shares | 7,199,162 |
Weighted Average Exercise Price | |
Beginning balance (in usd per share) | $ / shares | $ 44.05 |
Granted (in usd per share) | $ / shares | 59.40 |
Exercised (in usd per share) | $ / shares | 38.41 |
Canceled/forfeited (in usd per share) | $ / shares | 50.21 |
Ending balance (in usd per share) | $ / shares | $ 45.88 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Performance Award Activity) (Details) - Performance Shares | 3 Months Ended |
Oct. 31, 2021$ / sharesshares | |
Performance Shares | |
Beginning balance (in shares) | shares | 200,567 |
Granted (shares) | shares | 88,400 |
Vested (shares) | shares | 0 |
Canceled/forfeited (shares) | shares | 0 |
Ending balance (in shares) | shares | 288,967 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in usd per share) | $ / shares | $ 48.76 |
Granted (in usd per share) | $ / shares | 59.40 |
Vested (in usd per share) | $ / shares | 0 |
Canceled/forfeited (in usd per share) | $ / shares | 0 |
Ending balance (in usd per share) | $ / shares | $ 52.02 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 31, 2021 | Oct. 31, 2021 | |
Defined Benefit Plan, Plan Assets, Allocation | ||
Curtailment charge | $ 0.8 | |
Accumulated other comprehensive loss | (118.2) | $ (125.4) |
Reclassification, Other | ||
Defined Benefit Plan, Plan Assets, Allocation | ||
Accumulated other comprehensive loss | $ 4 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components of Net Periodic Pension Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Net periodic benefit costs | ||
Service cost | $ 1.8 | $ 2.2 |
Interest cost | 2.5 | 2.4 |
Expected return on assets | (6.3) | (5.8) |
Prior service cost amortization | 0.1 | 0.1 |
Actuarial loss amortization | 1.8 | 2.2 |
Curtailment charge | 0 | 0.8 |
Net periodic pension (benefits) costs | $ (0.1) | $ 1.9 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Jul. 31, 2021 | |
Forward foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative instrument term (months) | 12 months | |
Fair Value, Inputs, Level 2 | Fair Value | Fixed Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt instrument, fair value disclosure | $ 392.3 | $ 297.4 |
Fair Value, Inputs, Level 2 | Fair Value | Variable Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt instrument, fair value disclosure | 175.7 | 188.3 |
Fair Value, Inputs, Level 2 | Carrying Value | Fixed Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt instrument, fair value disclosure | 375 | 275 |
Fair Value, Inputs, Level 2 | Carrying Value | Variable Interest Rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Debt instrument, fair value disclosure | 175.7 | 188.3 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Equity method investments | $ 23.9 | $ 24.2 |
Fair Value Measurements (Deriva
Fair Value Measurements (Derivatives on the Balance Sheet) (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notional amounts | $ 363.9 | $ 327.2 |
Derivative assets | 4.5 | 2.6 |
Derivative liabilities | 2.5 | 3.6 |
Designated as hedging instruments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notional amounts | 141.9 | 173 |
Derivative assets | 2.9 | 2.1 |
Derivative liabilities | 1.9 | 3.2 |
Designated as hedging instruments | Net investment hedge | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notional amounts | 55.8 | 55.8 |
Derivative assets | 1.1 | 1.1 |
Derivative liabilities | 0.7 | 2 |
Designated as hedging instruments | Forward foreign currency exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notional amounts | 86.1 | 117.2 |
Derivative assets | 1.8 | 1 |
Derivative liabilities | 1.2 | 1.2 |
Not designated as hedging instruments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notional amounts | 222 | 154.2 |
Derivative assets | 1.6 | 0.5 |
Derivative liabilities | 0.6 | 0.4 |
Not designated as hedging instruments | Forward foreign currency exchange contracts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notional amounts | 222 | 154.2 |
Derivative assets | 1.6 | 0.5 |
Derivative liabilities | $ 0.6 | $ 0.4 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2021 | |
Guarantor Obligations | |||
Contingent liability for standby letters of credit issued under the Company’s revolving credit facility | $ 7.5 | $ 7.7 | |
Amounts drawn for letters of credit under the Company’s revolving credit facility | 0 | 0 | |
Investment earnings | 1.2 | $ 2 | |
Advanced Filtration Systems, Inc. | |||
Guarantor Obligations | |||
AFSI outstanding debt (the Company guarantees half) | $ 38.6 | $ 37.8 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Oct. 31, 2021 | Jul. 31, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued warranty reserves | $ 5.9 | $ 6.1 |
Segment Reporting (Summary of S
Segment Reporting (Summary of Segment Detail) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Oct. 31, 2021 | Oct. 31, 2020 | |
Segment Reporting Information | ||
Net sales | $ 760.9 | $ 636.6 |
Earnings before income taxes | 104.1 | 82.2 |
Operating Segments | Engine Products segment | ||
Segment Reporting Information | ||
Net sales | 527.2 | 436.2 |
Earnings before income taxes | 72.3 | 60.4 |
Operating Segments | Engine Products segment | Off-Road | ||
Segment Reporting Information | ||
Net sales | 93.9 | 64.8 |
Operating Segments | Engine Products segment | On-Road | ||
Segment Reporting Information | ||
Net sales | 31.5 | 32 |
Operating Segments | Engine Products segment | Aftermarket | ||
Segment Reporting Information | ||
Net sales | 374.3 | 317 |
Operating Segments | Engine Products segment | Aerospace and Defense | ||
Segment Reporting Information | ||
Net sales | 27.5 | 22.4 |
Operating Segments | Industrial Products segment | ||
Segment Reporting Information | ||
Net sales | 233.7 | 200.4 |
Earnings before income taxes | 38.3 | 27.5 |
Operating Segments | Industrial Products segment | Industrial Filtration Solutions | ||
Segment Reporting Information | ||
Net sales | 165.5 | 135.6 |
Operating Segments | Industrial Products segment | Gas Turbine Systems | ||
Segment Reporting Information | ||
Net sales | 16.6 | 23 |
Operating Segments | Industrial Products segment | Special Applications | ||
Segment Reporting Information | ||
Net sales | 51.6 | 41.8 |
Corporate and unallocated | ||
Segment Reporting Information | ||
Earnings before income taxes | $ (6.5) | $ (5.7) |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Oct. 31, 2021 | Jan. 31, 2021 | Jul. 31, 2021 | |
Restructuring Cost and Reserve | |||
Payments for restructuring | $ 2.5 | ||
Accrued restructuring expenses | 7.8 | ||
Cost of Sales | |||
Restructuring Cost and Reserve | |||
Restructuring charges | $ 5.8 | ||
Cost of Sales | Corporate and unallocated | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 5.8 | ||
Operating Expense | |||
Restructuring Cost and Reserve | |||
Restructuring charges | $ 9 | ||
Operating Expense | Engine Products segment | |||
Restructuring Cost and Reserve | |||
Restructuring charges | 2.5 | ||
Operating Expense | Industrial Products segment | |||
Restructuring Cost and Reserve | |||
Restructuring charges | $ 6.5 | ||
Employee Severance | |||
Restructuring Cost and Reserve | |||
Restructuring charges | $ 14.8 |