Cover Page
| Cover Page - shares | 6 Months Ended | |
| Jan. 31, 2023 | Feb. 28, 2023 | |
| Cover [Abstract] | ||
| Document Type | 10-Q | |
| Document Quarterly Report | true | |
| Document Period End Date | Jan. 31, 2023 | |
| 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, $5.00 par value | |
| Trading Symbol(s) | DCI | |
| Name of each exchange on which registered | NYSE | |
| Entity Current Reporting Status | Yes | |
| Entity Interactive Data Current | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Small Business | false | |
| Entity Emerging Growth Company | false | |
| Entity Shell Company | false | |
| Entity Common Stock, Shares Outstanding | 121,276,139 | |
| Entity Central Index Key | 0000029644 | |
| Current Fiscal Year End Date | --07-31 | |
| Document Fiscal Year Focus | 2023 | |
| Document Fiscal Period Focus | Q2 | |
| Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Income Statement [Abstract] | ||||
| Net sales | $ 828.3 | $ 802.5 | $ 1,675.6 | $ 1,563.4 |
| Cost of sales | 543.9 | 552.7 | 1,104 | 1,056.6 |
| Gross profit | 284.4 | 249.8 | 571.6 | 506.8 |
| Selling, general and administrative | 149.6 | 137.5 | 298.8 | 270.5 |
| Research and development | 18.5 | 16.6 | 37.2 | 33.1 |
| Operating expenses | 168.1 | 154.1 | 336 | 303.6 |
| Operating income | 116.3 | 95.7 | 235.6 | 203.2 |
| Interest expense | 4.6 | 3.6 | 9.2 | 7.1 |
| Other income, net | (1.6) | (2.4) | (3.4) | (2.4) |
| Earnings before income taxes | 113.3 | 94.5 | 229.8 | 198.5 |
| Income taxes | 27.3 | 22.7 | 56.6 | 49.7 |
| Net earnings | $ 86 | $ 71.8 | $ 173.2 | $ 148.8 |
| Weighted average shares - basic (in shares) | 121.7 | 123.9 | 122.2 | 124.1 |
| Weighted average shares - diluted (in shares) | 123.3 | 125.6 | 123.7 | 126 |
| Net earnings per share - basic (in usd per share) | $ 0.71 | $ 0.58 | $ 1.42 | $ 1.20 |
| Net earnings per share - diluted (in usd per share) | $ 0.70 | $ 0.57 | $ 1.40 | $ 1.18 |
CONDENSED CONSOLIDATED STATEM_2
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Statement of Comprehensive Income [Abstract] | ||||
| Net earnings | $ 86 | $ 71.8 | $ 173.2 | $ 148.8 |
| Other comprehensive income (loss): | ||||
| Foreign currency translation gain (loss) | 65.3 | (17.1) | 25.2 | (27.6) |
| Pension liability adjustment, net of deferred taxes of $0.3, $(0.6), $(0.1) and $(1.1), respectively | (0.7) | 2 | 0.5 | 4 |
| Derivatives: | ||||
| (Losses) gains on hedging derivatives, net of deferred taxes of $1.0, $(0.2), $(0.1) and $(0.4), respectively | (3.1) | 0.7 | 0.3 | 1.7 |
| Reclassifications of gains on hedging derivatives to net earnings, net of taxes of $0.9, $0.2, $0.3 and $(0.1), respectively | (1.8) | (0.3) | (0.6) | 0 |
| Total derivatives | (4.9) | 0.4 | (0.3) | 1.7 |
| Net other comprehensive income (loss) | 59.7 | (14.7) | 25.4 | (21.9) |
| Comprehensive income | $ 145.7 | $ 57.1 | $ 198.6 | $ 126.9 |
CONDENSED CONSOLIDATED STATEM_3
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Statement of Comprehensive Income [Abstract] | ||||
| Pension liability adjustment, net of deferred taxes, tax | $ 0.3 | $ (0.6) | $ (0.1) | $ (1.1) |
| Gains (losses) on hedging derivatives, net of deferred taxes, tax | 1 | (0.2) | (0.1) | (0.4) |
| Reclassifications of (gains) losses on hedging derivatives to net earnings, net of taxes, tax | $ 0.9 | $ 0.2 | $ 0.3 | $ (0.1) |
CONDENSED CONSOLIDATED BALANCE
| CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Current assets: | ||
| Cash and cash equivalents | $ 179.4 | $ 193.3 |
| Accounts receivable, less allowances of $7.3 and $7.6, respectively | 574.5 | 616.6 |
| Inventories, net | 501.3 | 502.4 |
| Prepaid expenses and other current assets | 93.9 | 94.2 |
| Total current assets | 1,349.1 | 1,406.5 |
| Property, plant and equipment, net | 625.8 | 594.4 |
| Goodwill | 350.2 | 345.8 |
| Intangible assets, net | 96.4 | 99.8 |
| Other long-term assets | 157.1 | 153.8 |
| Total assets | 2,578.6 | 2,600.3 |
| Current liabilities: | ||
| Short-term borrowings | 4 | 3.7 |
| Accounts payable | 302.1 | 338.5 |
| Accrued employee compensation and related taxes | 96.4 | 113.8 |
| Deferred revenue | 30.9 | 22.3 |
| Income taxes payable | 36.2 | 31.8 |
| Dividend payable | 27.9 | 28.3 |
| Other current liabilities | 82.6 | 91.2 |
| Total current liabilities | 580.1 | 629.6 |
| Long-term debt | 624.8 | 644.3 |
| Non-current income taxes payable | 57.6 | 69.4 |
| Deferred income taxes | 25.6 | 32.7 |
| Other long-term liabilities | 96.3 | 91.1 |
| Total liabilities | 1,384.4 | 1,467.1 |
| 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 | 20.2 | 17 |
| Retained earnings | 1,962.8 | 1,845.7 |
| Accumulated other comprehensive loss | (180.2) | (205.6) |
| Treasury stock, 30,454,889 and 29,089,612 shares, respectively, at cost | (1,366.8) | (1,282.1) |
| Total stockholders’ equity | 1,194.2 | 1,133.2 |
| Total liabilities and stockholders’ equity | $ 2,578.6 | $ 2,600.3 |
CONDENSED CONSOLIDATED BALANC_2
| CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Statement of Financial Position [Abstract] | ||
| Accounts receivable, allowance | $ 7.3 | $ 7.6 |
| 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, common, shares (in shares) | 30,454,889 | 29,089,612 |
CONDENSED CONSOLIDATED STATEM_4
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
| Jan. 31, 2023 | Jan. 31, 2022 | |
| Operating Activities | ||
| Net earnings | $ 173.2 | $ 148.8 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
| Depreciation and amortization | 44.8 | 47.5 |
| Deferred income taxes | (7.1) | 1.2 |
| Stock-based compensation expense | 13.7 | 13.4 |
| Other, net | 2.9 | 6.5 |
| Changes in operating assets and liabilities | (7) | (137.6) |
| Net cash provided by operating activities | 220.5 | 79.8 |
| Investing Activities | ||
| Purchases of property, plant and equipment | (57.6) | (33.5) |
| Acquisitions, net of cash acquired | 0 | (49) |
| Net cash used in investing activities | (57.6) | (82.5) |
| Financing Activities | ||
| Proceeds from long-term debt | 40 | 174.3 |
| Repayments of long-term debt | (65) | (75) |
| Change in short-term borrowings | 0.3 | 15.9 |
| Purchase of treasury stock | (115.2) | (115.6) |
| Dividends paid | (56.2) | (54.6) |
| Exercise of stock options and other | 19.3 | 9.3 |
| Net cash used in financing activities | (176.8) | (45.7) |
| Effect of exchange rate changes on cash | 0 | (4) |
| Decrease in cash and cash equivalents | (13.9) | (52.4) |
| Cash and cash equivalents, beginning of period | 193.3 | 222.8 |
| Cash and cash equivalents, end of period | 179.4 | 170.4 |
| Supplemental Cash Flow Information | ||
| Income taxes paid | 72.3 | 50.4 |
| Interest paid | 8.9 | 5 |
| Supplemental Disclosure of Non-Cash Operating and Investing Transactions | ||
| Accrued property, plant and equipment additions | 19.2 | 9.1 |
| Leased assets obtained in exchange for new operating lease liabilities | $ 10.3 | $ 9.3 |
CONDENSED CONSOLIDATED STATEM_5
| CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
| Beginning balance at Jul. 31, 2021 | $ 1,137.1 | $ 758.2 | $ 3.2 | $ 1,623.8 | $ (118.2) | $ (1,129.9) |
| Increase (Decrease) in Stockholders' Equity | ||||||
| Net earnings | 148.8 | 148.8 | ||||
| Other comprehensive (loss) income | (21.9) | (21.9) | ||||
| Treasury stock acquired | (115.6) | (115.6) | ||||
| Dividends declared | (54.3) | (54.3) | ||||
| Stock compensation and other activity | 22.7 | 8.7 | (0.2) | 14.2 | ||
| Ending balance at Jan. 31, 2022 | 1,116.8 | 758.2 | 11.9 | 1,718.1 | (140.1) | (1,231.3) |
| Beginning balance at Oct. 31, 2021 | 1,115.9 | 758.2 | 11.7 | 1,701 | (125.4) | (1,229.6) |
| Increase (Decrease) in Stockholders' Equity | ||||||
| Net earnings | 71.8 | 71.8 | ||||
| Other comprehensive (loss) income | (14.7) | (14.7) | ||||
| Treasury stock acquired | (12.7) | (12.7) | ||||
| Dividends declared | (54.5) | (54.5) | ||||
| Stock compensation and other activity | 11 | 0.2 | (0.2) | 11 | ||
| Ending balance at Jan. 31, 2022 | 1,116.8 | 758.2 | 11.9 | 1,718.1 | (140.1) | (1,231.3) |
| Beginning balance at Jul. 31, 2022 | 1,133.2 | 758.2 | 17 | 1,845.7 | (205.6) | (1,282.1) |
| Increase (Decrease) in Stockholders' Equity | ||||||
| Net earnings | 173.2 | 173.2 | ||||
| Other comprehensive (loss) income | 25.4 | 25.4 | ||||
| Treasury stock acquired | (115.2) | (115.2) | ||||
| Dividends declared | (55.9) | (55.9) | ||||
| Stock compensation and other activity | 33.5 | 3.2 | (0.2) | 30.5 | ||
| Ending balance at Jan. 31, 2023 | 1,194.2 | 758.2 | 20.2 | 1,962.8 | (180.2) | (1,366.8) |
| Beginning balance at Oct. 31, 2022 | 1,154.8 | 758.2 | 22.2 | 1,932.8 | (239.9) | (1,318.5) |
| Increase (Decrease) in Stockholders' Equity | ||||||
| Net earnings | 86 | 86 | ||||
| Other comprehensive (loss) income | 59.7 | 59.7 | ||||
| Treasury stock acquired | (69.5) | 69.5 | ||||
| Dividends declared | (56) | (56) | ||||
| Stock compensation and other activity | 19.2 | (2) | 21.2 | |||
| Ending balance at Jan. 31, 2023 | $ 1,194.2 | $ 758.2 | $ 20.2 | $ 1,962.8 | $ (180.2) | $ (1,366.8) |
CONDENSED CONSOLIDATED STATEM_6
| CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Statement of Stockholders' Equity [Abstract] | ||||
| Dividends, per share (in usd per share) | $ 0.46 | $ 0.44 | $ 0.46 | $ 0.44 |
Summary of Significant Accounti
| Summary of Significant Accounting Policies | 6 Months Ended |
| Jan. 31, 2023 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Summary of Significant Accounting Policies | Note 1. 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 a re of a normal recurring nature. Operating results for the three and six months ended January 31, 2023 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, 2022. As discussed in Note 18, effective November 1, 2022, the Company established a new segment reporting structure which resulted in three reportable segments: Mobile Solutions, Industrial Solutions and Life Sciences. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and all 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. Certain reclassifications to previously reported financial information on the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Stockholders’ Equity have been made to conform to the current period presentation. 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. Operating Environment Inflation While inflation was not as significant in the second quarter or the first six months of fiscal 2023, as compared to the prior year, the Company continues to experience the effects of inflation related to raw materials and other expenses, including labor and energy. These inflationary pressures have had an adverse impact on the Company’s profit margins throughout the second quarter and the first six months of fiscal 2023, however they have been generally mitigated by pricing actions implemented in the prior year. New Accounting Standards Not Yet Adopted The Company considers the applicability and impact of the Financial Accounting Standards Board’s (FASB) Accounting Standards Updates (ASUs) issued but not yet adopted. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2024. The Company does not expect adoption of this standard will have a material impact on its financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair values; it also requires additional disclosures, including the nature and remaining duration of such restrictions. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2025. The Company does not expect adoption of this standard will have a material impact on its financial statements. |
Acquisitions
| Acquisitions | 6 Months Ended |
| Jan. 31, 2023 | |
| Business Combination and Asset Acquisition [Abstract] | |
| Acquisitions | Note 2. Acquisitions In the second quarter of fiscal 2022, the Company acquired Pearson Arnold Industrial Services (PAIS), headquartered in New Hope, Minnesota, for cash consideration of $3.3 million, net of cash acquired, and contingent consideration with a maximum payout of $1.7 million, and Solaris Biotechnology S.r.l (Solaris), headquartered in Mantovano, Italy, with U.S. operations based in Berkeley, California, for cash consideration of €41 million, or $45.7 million, net of cash acquired. PAIS provides equipment, parts and services for dust, mist and fume collection systems, industrial fans and compressed air systems. PAIS is reported within the Company’s Industrial Filtration Solutions (IFS) business in the Industrial Solutions segment. So laris designs and manufactures bioprocessing equipment, including bioreactors, fermenters and tangential flow filtration systems for use in food and beverage, biotec hnology and other life sciences markets. Solaris is reported within the Company’s Life Sciences segment. Net sales of these acquisitions were immaterial to the Condensed Consolidated Statements of Earnings for the three and six months ended January 31, 2023. In the fourth quarter of fiscal 2022, the Company acquired Purilogics LLC (Purilogics) headquartered in Greenville, South Carolina, for cash consideration of $19.9 million, net of cash acquired, and contingent consideration with a maximum payout of $29.0 million. Purilogics is a biotechnology company that leverages a novel technology platform for the development of membrane chromatography products. Purilogics offers a broad portfolio of purification tools for a wide range of biologics. Purilogics’ proprietary formulations and processes create membranes that have significant competitive advantages, enabling faster and more cost-effective production of increasingly complex biologic drugs. Purilogics is reported within the Company’s Life Sciences segment. Purchase accounting was finalized in the second quarter of fiscal 2023. Net sales of Purilogics were immaterial to the Condensed Consolidated Statements of Earnings for the three and six months ended January 31, 2023. See Notes 15 and 17 for related contingent compensation and consideration. Purchase Price Summary The components of acquisitions, net of cash acquired, as of each acquisition date (in millions): Intangible assets: Technology $ 45.9 Trademarks and tradenames 4.0 Customer relationships 3.0 Non-competition agreements 0.6 Backlog 0.2 Intangible assets acquired 53.7 Tangible liabilities, net (2.7) Assets acquired, net 51.0 Goodwill 42.8 Aggregate purchase price 93.8 Less contingent consideration (24.6) Less cash acquired (0.3) Acquisitions, net of cash acquired $ 68.9 |
Revenue
| Revenue | 6 Months Ended |
| Jan. 31, 2023 | |
| Revenue from Contract with Customer [Abstract] | |
| Revenue | Note 3. Revenue The 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 Six Months Ended 2023 2022 2023 2022 U.S. and Canada $ 346.4 $ 314.0 $ 721.7 $ 614.8 Europe, Middle East and Africa (EMEA) 252.1 241.7 478.8 466.3 Asia Pacific (APAC) 142.4 170.2 293.0 334.0 Latin America (LATAM) 87.4 76.6 182.1 148.3 Total net sales $ 828.3 $ 802.5 $ 1,675.6 $ 1,563.4 See Note 18 for net sales disaggregated by segment and business unit. 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 $17.7 million as of January 31, 2023 and July 31, 2022. 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 deferred revenue on the Condensed Consolidated Balance Sheets. Contract liabilities were $30.9 million and $22.3 million as of January 31, 2023 and July 31, 2022, 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. None of the Company’s contracts contained a significant financing component. |
Inventories, Net
| Inventories, Net | 6 Months Ended |
| Jan. 31, 2023 | |
| Inventory Disclosure [Abstract] | |
| Inventories, Net | Note 4. Inventories, Net The components of inventories, net were as follows (in millions): January 31, July 31, Raw materials $ 190.3 $ 197.6 Work in process 59.6 56.1 Finished products 251.4 248.7 Total inventories, net $ 501.3 $ 502.4 |
Property, Plant and Equipment,
| Property, Plant and Equipment, Net | 6 Months Ended |
| Jan. 31, 2023 | |
| Property, Plant and Equipment [Abstract] | |
| Property, Plant and Equipment, Net | Note 5. Property, Plant and Equipment, Net The components of property, plant and equipment, net were as follows (in millions): January 31, July 31, Land $ 26.2 $ 25.6 Buildings 407.9 396.2 Machinery and equipment 974.2 940.1 Computer software 141.5 141.0 Construction in progress 110.6 72.1 Less accumulated depreciation (1,034.6) (980.6) Total property, plant and equipment, net $ 625.8 $ 594.4 |
Goodwill and Intangible Assets
| Goodwill and Intangible Assets | 6 Months Ended |
| Jan. 31, 2023 | |
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| Goodwill and Intangible Assets | Note 6. Goodwill and Intangible Assets Goodwill The Company allocates goodwill to reporting units within its Mobile Solutions, Industrial Solutions and Life Sciences segments. There were no dispositions or impairment charges recorded during the three and six months ended January 31, 2023 and 2022. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2022 and did not record any impairment as a result of this assessment. As a result of the organization redesign, the Company performed a qualitative impairment assessment based on the new segments in the second quarter of fiscal 2023 and concluded there was no impairment. Goodwill by reportable segment was as follows (in millions): Mobile Industrial Life Sciences Total Balance as of July 31, 2022 (1) $ 25.3 $ 282.1 $ 38.4 $ 345.8 Foreign currency translation — 2.9 1.5 4.4 Balance as of January 31, 2023 $ 25.3 $ 285.0 $ 39.9 $ 350.2 (1) All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation (see Note 18). Intangible Assets Intangible asset classes were as follows (in millions): Customer Relationships Patents, Trademarks and Technology Gross Carrying Amount Accumulated Amortization Total Net Value Gross Carrying Amount Accumulated Amortization Total Net Value Total Balance as of July 31, 2022 $ 104.6 $ (60.3) $ 44.3 $ 71.9 $ (16.4) $ 55.5 $ 99.8 Amortization expense — (2.6) (2.6) — (2.5) (2.5) (5.1) Foreign currency translation 0.5 0.2 0.7 1.1 (0.1) 1.0 1.7 Balance as of January 31, 2023 $ 105.1 $ (62.7) $ 42.4 $ 73.0 $ (19.0) $ 54.0 $ 96.4 Amortization expense was $2.5 million and $5.1 million for the three and six months ended January 31, 2023, respectively, and was $2.4 million and $4.5 million for the three and six months ended January 31, 2022, respectively. Amortization expense is included in selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings. |
Long-Term Debt
| Long-Term Debt | 6 Months Ended |
| Jan. 31, 2023 | |
| Debt Disclosure [Abstract] | |
| Long-Term Debt | Note 7. Long-Term Debt As of January 31, 2023, there was $392.5 million available and $100.0 million outstanding on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026. Certain debt agreements contain financial covenants related to interest coverage and leverage ratios, as well as other non-financial covenants. As of January 31, 2023, the Company was in compliance with all such covenants. |
Income Taxes
| Income Taxes | 6 Months Ended |
| Jan. 31, 2023 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Note 8. Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. Internal Revenue Service has completed examinations of the Company’s U.S. federal income tax returns through fiscal 2018. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before fiscal 2017. As of January 31, 2023, gross unrecognized tax benefits were $16.2 million and accrued interest and penalties on these unrecognized tax benefits were $1.6 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 within the next 12 months it is reasonably possible its uncertain tax positions could decrease by as much as $3.2 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. In August 2022, the Inflation Reduction Act of 2022 was signed into U.S. law. Under this law, there is a new 15% corporate minimum tax, which is not expected to have an impact on the Company. In addition, beginning January 1, 2023, a 1% excise tax was imposed on the net value of certain share repurchases, which did not have a material impact on the Company’s Condensed Consolidated Financial Statements. The Company evaluated the other aspects within this new law and does not expect a material impact to the Company’s Condensed Consolidated Financial Statements. 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 | 6 Months Ended |
| Jan. 31, 2023 | |
| Earnings Per Share [Abstract] | |
| Earnings Per Share | Note 9. Earnings Per Share Basic net earnings per share (EPS) is computed by dividing net earnings by the weighted average number of outstanding common shares. Diluted net EPS 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 EPS calculations were as follows (in millions, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net earnings $ 86.0 $ 71.8 $ 173.2 $ 148.8 Weighted average common shares outstanding Weighted average common shares – basic 121.7 123.9 122.2 124.1 Dilutive impact of stock-based awards 1.6 1.7 1.5 1.9 Weighted average common shares – diluted 123.3 125.6 123.7 126.0 Net EPS – basic $ 0.71 $ 0.58 $ 1.42 $ 1.20 Net EPS – diluted $ 0.70 $ 0.57 $ 1.40 $ 1.18 Stock options excluded from net EPS calculation — 1.6 1.6 — |
Stockholders' Equity
| Stockholders' Equity | 6 Months Ended |
| Jan. 31, 2023 | |
| Stockholders' Equity Note [Abstract] | |
| Stockholders' Equity | Note 10. 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 six months ended January 31, 2023, the Company repurchased 2.1 million shares for $115.2 million. During the six months ended January 31, 2022, the Company repurchased 1.8 million shares for $115.6 million. As of January 31, 2023, the Company had remaining authorization to repurchase 3.3 million shares under this plan. Dividends Dividends paid were 23.0 cents and 46.0 cents per common share for the three and six months ended January 31, 2023 and were 22.0 cents and 44.0 cents per common share for the three and six months ended January 31, 2022, respectively. |
Accumulated Other Comprehensive
| Accumulated Other Comprehensive Loss | 6 Months Ended |
| Jan. 31, 2023 | |
| Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
| Accumulated Other Comprehensive Loss | Note 11. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss for the three months ended January 31, 2023 and 2022 were as follows (in millions): Foreign Pension Derivative Total Balance as of October 31, 2022, net of tax $ (183.7) $ (66.3) $ 10.1 $ (239.9) Other comprehensive income (loss) before reclassifications and tax 65.3 — (4.1) 61.2 Tax benefit — — 1.0 1.0 Other comprehensive income (loss) before reclassifications, net of tax 65.3 — (3.1) 62.2 Reclassifications, before tax — (1.0) (1) (2.7) (3.7) Tax benefit — 0.3 0.9 1.2 Reclassifications, net of tax — (0.7) (1.8) (2) (2.5) Other comprehensive income (loss), net of tax 65.3 (0.7) (4.9) 59.7 Balance as of January 31, 2023, net of tax $ (118.4) $ (67.0) $ 5.2 $ (180.2) Balance as of October 31, 2021, net of tax $ (54.5) $ (72.7) $ 1.8 $ (125.4) Other comprehensive (loss) income before reclassifications and tax (17.1) (1.7) (3) 0.9 (17.9) Tax benefit (expense) — 0.4 (0.2) 0.2 Other comprehensive (loss) income before reclassifications, net of tax (17.1) (1.3) 0.7 (17.7) Reclassifications, before tax — 4.3 (1) (0.5) 3.8 Tax (expense) benefit — (1.0) 0.2 (0.8) Reclassifications, net of tax — 3.3 (0.3) (2) 3.0 Other comprehensive (loss) income, net of tax (17.1) 2.0 0.4 (14.7) Balance as of January 31, 2022, net of tax $ (71.6) $ (70.7) $ 2.2 $ (140.1) (1) Amounts include foreign currency translation gain of $1.5 million and loss of $1.2 million and net amortization of prior service costs and actuarial losses of $0.5 million and $1.9 million in fiscal 2023 and 2022, respectively, as well as reclassifications of $1.2 million in fiscal 2022, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (2) Relates to designated foreign currency forward contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings, see Note 14. (3) In fiscal 2022, pension settlement accounting was triggered. Remeasurements of the Company’s pension obligations resulted in an increase of $1.7 million to accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets, see Note 13. Changes in accumulated other comprehensive loss for the six months ended January 31, 2023 and 2022 were as follows (in millions): Foreign Pension Derivative Total Balance as of July 31, 2022, net of tax $ (143.6) $ (67.5) $ 5.5 $ (205.6) Other comprehensive income before reclassifications and tax 25.2 — 0.4 25.6 Tax expense — — (0.1) (0.1) Other comprehensive income before reclassifications, net of tax 25.2 — 0.3 25.5 Reclassifications, before tax — 0.6 (1) (0.9) (0.3) Tax (expense) benefit — (0.1) 0.3 0.2 Reclassifications, net of tax — 0.5 (0.6) (2) (0.1) Other comprehensive income (loss), net of tax 25.2 0.5 (0.3) 25.4 Balance as of January 31, 2023, net of tax $ (118.4) $ (67.0) $ 5.2 $ (180.2) 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 (27.6) (1.7) (3) 2.1 (27.2) Tax benefit (expense) — 0.4 (0.4) — Other comprehensive (loss) income before reclassifications, net of tax (27.6) (1.3) 1.7 (27.2) Reclassifications, before tax — 6.8 (1) 0.1 6.9 Tax expense — (1.5) (0.1) (1.6) Reclassifications, net of tax — 5.3 — (2) 5.3 Other comprehensive (loss) income, net of tax (27.6) 4.0 1.7 (21.9) Balance as of January 31, 2022, net of tax $ (71.6) $ (70.7) $ 2.2 $ (140.1) (1) Amounts include foreign currency translation gain of $0.5 million and loss of $1.7 million and net amortization of prior service costs and actuarial losses of $1.1 million and $3.9 million in fiscal 2023 and 2022, respectively, as well as reclassifications of $1.2 million in fiscal 2022, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (2) Relates to designated foreign currency forward contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings, see Note 14. (3) In fiscal 2022, pension settlement accounting was triggered. Remeasurements of the Company’s pension obligations resulted in an increase of $1.7 million to accumulated other comprehensive loss on the Condensed Consolidated Balance Sheet, see Note 13. |
Stock-Based Compensation
| Stock-Based Compensation | 6 Months Ended |
| Jan. 31, 2023 | |
| Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
| Stock-Based Compensation | Note 12. 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 the date of grant and vest in equal increments over three years. Pretax stock-based compensation expense associated with options was $1.8 million and $9.3 million for the three and six months ended January 31, 2023, respectively, and was $1.9 million and $8.8 million for the three and six months ended January 31, 2022, respectively. Fair value is calculated using the Black-Scholes option pricing model. The weighted average fair value for options granted was $15.62 and $14.27 per share during the six months ended January 31, 2023 and 2022, respectively. Option activity was as follows: Options Weighted Balance outstanding as of July 31, 2022 6,927,161 $ 46.32 Granted 911,900 51.21 Exercised (676,039) 39.18 Expired/forfeited (52,589) 53.56 Balance outstanding as of January 31, 2023 7,110,433 $ 47.57 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 0% to 200% of the target award depending on achievement. Pretax performance-based awards expense was $1.7 million and $3.5 million for the three and six mo nths ended January 31, 2023 and was $2.1 million and $3.8 million for the three and six months ended January 31, 2022, respectively. Performance-based awards for non-vested activity were as follows: Performance Shares Weighted Balance outstanding as of July 31, 2022 188,206 $ 52.20 Granted 113,100 50.89 Vested — — Forfeited (7,692) 54.76 Balance outstanding as of January 31, 2023 293,614 $ 51.63 |
Employee Benefit Plans
| Employee Benefit Plans | 6 Months Ended |
| Jan. 31, 2023 | |
| Retirement Benefits, Description [Abstract] | |
| Employee Benefit Plans | Note 13. Employee Benefit Plans The Company has defined benefit pension plans for certain hourly and salaried employees. They consist of plans in the U.S., Belgium, Germany, Mexico and the United Kingdom. These plans generally provide pension benefits based on years of service and compensation level. Components of net periodic pension costs other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Earnings. Net periodic pension costs for the Company’s pension plans were as follows (in millions): Three Months Ended Six Months Ended 2023 2022 2023 2022 Service cost $ 1.6 $ 1.8 $ 3.2 $ 3.6 Interest cost 4.2 2.5 8.3 5.0 Expected return on assets (6.4) (6.2) (12.7) (12.5) Prior service cost amortization 0.1 — 0.1 0.1 Actuarial loss amortization 0.5 1.8 1.1 3.6 Settlement charge — 1.2 — 1.2 Net periodic pension costs $ — $ 1.1 $ — $ 1.0 In the second quarter of fiscal 2022, the Company recorded a pension settlement charge of $1.2 million as a result of lump sum distributions exceeding the service and interest cost components of the annual net periodic pension cost. The corresponding remeasurement resulted in a decrease in the Company’s pension assets and a corresponding adjustment to other comprehensive loss in the Condensed Consolidated Statement of Comprehensive Income of $1.7 million . See Note 11. |
Derivative Instruments and Hedg
| Derivative Instruments and Hedging | 6 Months Ended |
| Jan. 31, 2023 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Derivative Instruments and Hedging | Note 14. Derivative Instruments and Hedging Derivative Fair Value Measurements The Company enters into derivative instrument agreements, including foreign currency forward 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. There is risk the 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. 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 January 31, 2023 and July 31, 2022, no collateral was posted. The Company does not enter into derivative instrument agreements for trading or speculative purposes. For discussion on the fair value of the Company’s derivatives, see Note 15. Foreign Currency Forward Contracts - Cash Flow Hedges and Derivatives Not Designated as Hedging Instruments 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 foreign currency forward contracts to manage those exposures and fluctuations. These contracts generally mature in 12 months or less, which is consistent with the forecasts of the related purchases and sales. Certain contracts are designated as cash flow hedges, whereas the remaining contracts, most of which are related to certain intercompany transactions which offset balance sheet exposure, are not designated as hedging instruments. The total notional amounts of the foreign currency forward contracts designated as hedges were $77.2 million and $158.0 million as of January 31, 2023 and July 31, 2022, respectively. The total notional amounts of the foreign currency forward contracts not designated as hedges were $207.9 million and $151.6 million as of January 31, 2023 and July 31, 2022, respectively. 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, see Note 11. Designated hedges are recognized as a component of either net sales, cost of sales, selling, general and administrative expenses or other income, net in the Condensed Consolidated Statements of Earnings upon occurrence of the related hedged transaction. Hedges which are not designated are recognized in other income, net in the Condensed Consolidated Statements of Earnings along with the related hedged transactions. Changes in the fair value of hedges which are not designated, are recognized in other income, net in the Condensed Consolidated Statements of Earnings. Amounts related to foreign currency forward contracts designated as hedges are expected to be reclassified into earnings during the next 12 months based upon the timing of inventory purchases and sales. 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 i ts operations in Europe. The Company has elected the spot method for designating these contracts as net investment hedges. The total notional amount of net investment hedges was €80 million, or $88.8 million, as of January 31, 2023 and July 31, 2022. The maturity dates range from 2027 to 2029. Gains and losses resulting from a change in fair value of the net investment hedge are offset by gains and losses on the underlying foreign currency exposure and are included in accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets. Amounts related to excluded components associated with the net investment hedge are expected to be reclassified into earnings in interest expense in the Condensed Consolidated Statements of Earnings through their maturity. Cash Flows Cash flows from derivative transactions are recorded in operating activities in the Condensed Consolidated Statements of Cash Flows. |
Fair Value Measurements
| Fair Value Measurements | 6 Months Ended |
| Jan. 31, 2023 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value Measurements | Note 15. 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 January 31, 2023 and July 31, 2022, 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. Short-term financial instruments are classified as Level 1 in the fair value hierarchy. Long-Term Debt As of January 31, 2023, the estimated fair values of fixed interest rate long-term debt were $386.4 million compared to the carrying values of $425.0 million. As of July 31, 2022, the estimated fair values of fixed interest rate long-term debt were $396.9 million compared to the carrying values of $425.0 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 $201.9 million and $221.7 million as of January 31, 2023 and July 31, 2022, respectively, and approximate their fair values. Long-term deb t 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 $20.5 million and $22.4 million as of January 31, 2023 and July 31, 2022, 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 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 fair values of the Company’s foreign currency forward 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. Industry standard data providers are the primary source for forward and spot rate information for foreign currency exchange rates. The fair values of the Company’s foreign currency forward contracts and net investment hedges are classified as Level 2 in the fair value hierarchy. For discussion of the Company’s derivatives and hedging, see Note 14. 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): Assets Liabilities Balance Sheet Location January 31, July 31, January 31, July 31, Designated as hedging instruments Foreign currency forward contracts Other current assets, other current liabilities $ 1.0 $ 0.3 $ 1.9 $ 2.7 Net investment hedges Other current assets and other long-term assets 6.0 8.2 — — Total designated 7.0 8.5 1.9 2.7 Not designated as hedging instruments Foreign currency forward contracts Other current assets, other current liabilities 0.6 1.7 1.7 2.5 Total not designated 0.6 1.7 1.7 2.5 Total $ 7.6 $ 10.2 $ 3.6 $ 5.2 Amounts related to excluded components, such as forward points, are excluded from the assessment of hedge effectiveness of net investment hedges and are expected to be reclassified into earnings throughout their maturity dates. See Note 11 for additional information on accumulated other comprehensive loss. Fair Value of Contingent Consideration The fair value of the contingent consideration liability is determined using a probability-weighted discounted cash flow method. This fair value measurement is based on unobservable inputs in the market, and thus, represents a Level 3 measurement within the fair value hierarchy. This analysis reflects the contractual terms of the purchase agreement (e.g., potential payment amounts, length of measurement periods, manner of calculating any amounts due) and utilizes assumptions with regard to future financial and operational milestones, probabilities of achieving such milestones and a discount rate. Depending on the contractual terms of the purchase agreement, the probability of achieving such milestones generally represent the only significant unobservable inputs. The contingent consideration liability is measured at fair value each reporting period and changes in estimates of fair value are recognized in earnings. The fair value of the Company’s contingent consideration liability that uses unobservable inputs, was $24.7 million as of January 31, 2023 and July 31, 2022. The maximum potential payout of the contingent consideration as of January 31, 2023 and July 31, 2022 was $30.7 million. There was no contingent consideration as of January 31, 2022, see Note 17. |
Guarantees
| Guarantees | 6 Months Ended |
| Jan. 31, 2023 | |
| Guarantees [Abstract] | |
| Guarantees | Note 16. 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 contingent liability for standby letters of credit was as follows (in millions): January 31, July 31, Contingent liability for standby letters of credit issued under the Company’s revolving credit facility $ 7.5 $ 7.5 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 $64.8 million and $68.8 million as of January 31, 2023 and July 31, 2022, respectively. AFSI has $63.0 million capacity in a revolving credit facility, which expires in 2024, and $17.0 million capacity in an additional multi-currency revolving credit facility, which terminates upon notification by either AFSI or the financial institution. Earnings from AFSI, which are recorded in other income, net in the Condensed Consolidated Statements of Earnings, were $0.5 million and $1.8 million for the three and six months ended January 31, 2023, respectively, and $2.0 million and $3.2 million for the three and six months ended January 31, 2022, respectively. |
Commitments and Contingencies
| Commitments and Contingencies | 6 Months Ended |
| Jan. 31, 2023 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Note 17. Commitments and Contingencies The Company records provisions when it is probable 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. Contingent Compensation and Consideration Acquisition Agreement - Purilogics The Company has an acquisition purchase agreement with Purilogics, which includes deferred payment provisions representing potential milestone payments for Purilogics’ former owners. The provisions are made up of two general types of arrangements, contingent compensation and contingent consideration. The contingent compensation arrangement is contingent on the former owner’s future employment with the Company, and the related amounts are recognized over the required employment period. The contingent consideration is not contingent on employment and was recorded as purchase consideration in both other current and other long-term liabilities on the Condensed Consolidated Balance Sheets at the time of the initial acquisition based on the fair value of the estimated liability. The amounts are paid over a three The total contingent compensation arrangement liability was $0.6 million and $0.1 million as of January 31, 2023 and July 31, 2022, respectively, which was included in other long-term liabilities on the Condensed Consolidated Balance Sheets. The maximum payout of the contingent compensation arrangement upon completion of the future performance periods was $3.0 million as of January 31, 2023 and July 31, 2022, inclusive of the $0.6 million and $0.1 million accrued, respectively. The total contingent consideration liability was $23.0 million as of both January 31, 2023 and July 31, 2022, and was included in other current and other long-term liabilities on the Condensed Consolidated Balance Sheets. The Company primarily determines the contingent consideration liability based on the forecasted probability of achieving certain milestones. The contingent consideration liability is measured at fair value each reporting period and changes in estimates of fair value are recognized in earnings. The maximum payout of the contingent consideration was $29.0 million, inclusive of the $23.0 million accrued as of both January 31, 2023 and July 31, 2022. Other Acquisition Agreements For other acquisitions, the total contingent compensation arrangement liability was $0.6 million and $0.3 million as of January 31, 2023 and July 31, 2022, respectively, which was included in other long-term liabilities on the Condensed Consolidated Balance Sheets. The maximum payout of the contingent compensation arrangement upon completion of the future performance periods was $3.1 million, which terminates in five years, inclusive of the $0.6 million and $0.3 million accrued as of January 31, 2023 and July 31, 2022, respectively. The total contingent consideration liability was $1.7 million, which was included in other long-term liabilities on the Condensed Consolidated Balance Sheets, as of January 31, 2023 and July 31, 2022. The maximum payout of the contingent consideration was $1.7 million, which terminates in three years and was fully accrued as of January 31, 2023 and July 31, 2022. For additional discussion regarding the fair value of the Company’s contingent consideration liability, see Note 15. |
Segment Reporting
| Segment Reporting | 6 Months Ended |
| Jan. 31, 2023 | |
| Segment Reporting, Measurement Disclosures [Abstract] | |
| Segment Reporting | Note 18. Segment Reporting During the first quarter of fiscal 2023, the Company announced a company-wide organizational redesign to further support the Company’s growth strategies and better serve its customers. Effective November 1, 2022, as a result of the organizational redesign, the Company established a new segment reporting structure which resulted in three reportable segments: Mobile Solutions, Industrial Solutions and Life Sciences. The organizational structure also includes Corporate and unallocated which includes interest expense and certain corporate expenses determined to be non-allocable to the segments, such as restructuring charges and incentive compensation. 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. All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation. The Mobile Solutions segment is organized based on a combination of customers and products and consists of the Off-Road, On-Road and Aftermarket business units. Within these business units, products consist of replacement filters for both air and liquid filtration applications as well as exhaust and emissions. Applications include air filtration systems, fuel and lube systems, exhaust and emissions systems, and sensors, indicators and monitoring systems. Mobile Solutions sells to original equipment manufacturers (OEMs) in the construction, mining, agriculture and transportation end markets and to independent distributors, OEM dealer networks, private label accounts and large fleets. The Industrial Solutions segment is organized based on product type and consists of the Industrial Filtration Solutions (IFS) and Aerospace and Defense business units. Within the IFS business unit, products consist of dust, fume and mist collectors, compressed air purification systems, air filtration systems for gas turbines , hydraulic applications as well as gas and liquid filtration for industrial processes. Aerospace and Defense products consist of air, fuel and lube filtration sold to the aerospace fixed-wing, rotorcraft and defense ground vehicle industries. The Life Sciences segment consists of micro-environment gas and liquid filtration for food, beverage and industrial processes, bioprocessing equipment, including bioreactors and fermenters, polytetrafluoroethylene membrane-based products, as well as specialized air and gas filtration systems for applications including hard disk drives, semiconductor manufacturing, sensors, indicators and monitoring systems. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations and sharing of assets. Therefore, the Company does not represent these segments, if operated independently, would report earnings before income taxes as stated below. Segment details were as follows (in millions): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales Mobile Solutions $ 522.5 $ 513.5 $ 1,077.4 $ 1,000.8 Industrial Solutions 246.4 218.5 476.0 419.3 Life Sciences 59.4 70.5 122.2 143.3 Total Company $ 828.3 $ 802.5 $ 1,675.6 $ 1,563.4 Earnings (loss) before income taxes Mobile Solutions $ 78.6 $ 58.6 $ 158.9 $ 124.2 Industrial Solutions 46.3 27.2 83.9 51.8 Life Sciences 6.3 16.7 17.1 37.1 Corporate and unallocated (17.9) (8.0) (30.1) (14.6) Total Company $ 113.3 $ 94.5 $ 229.8 $ 198.5 Assets by segment were as follows (in millions): January 31, 2023 July 31, 2022 Mobile Solutions $ 1,308.0 $ 1,319.4 Industrial Solutions 793.9 816.0 Life Sciences 281.0 267.8 Corporate and unallocated 195.7 197.1 Total assets $ 2,578.6 $ 2,600.3 Net sales by business unit were as follows (in millions): Three Months Ended Six Months Ended 2023 2022 2023 2022 Mobile Solutions segment Off-Road $ 106.2 $ 91.9 $ 209.8 $ 182.3 On-Road 34.5 33.1 70.5 64.6 Aftermarket 381.8 388.5 797.1 753.9 Total Mobile Solutions segment 522.5 513.5 1,077.4 1,000.8 Industrial Solutions segment Industrial Filtration Solutions 211.8 191.4 407.8 364.7 Aerospace and Defense 34.6 27.1 68.2 54.6 Total Industrial Solutions segment 246.4 218.5 476.0 419.3 Life Sciences segment Total Life Sciences segment 59.4 70.5 122.2 143.3 Total Company $ 828.3 $ 802.5 $ 1,675.6 $ 1,563.4 Concentrations There were no customers that accounted for over 10% of net sales for the three and six months ended January 31, 2023 or 2022. There were no customers that accounted for over 10% of gross accounts receivable as of January 31, 2023 or as of July 31, 2022. |
Restructuring and Other Charges
| Restructuring and Other Charges | 6 Months Ended |
| Jan. 31, 2023 | |
| Restructuring and Related Activities [Abstract] | |
| Restructuring and Other Charges | Note 19. Restructuring and Other Charges In the first quarter of fiscal 2023, in conjunction with the organizational redesign, the Company recorded $7.6 million of charges consisting of $4.2 million of severance charges and $3.4 million of other organizational redesign costs. In the second quarter of fiscal 2023, the Company recorded additional charges of $9.3 million consisting of $3.1 million of severance charges, $1.4 million of other organizational redesign costs and $4.8 million of costs mainly associated with the exiting of a lower-margin customer program. Second quarter charges of $1.5 million were included in cost of sales and $7.8 million were included in selling, general and administrative expenses in the accompanying Condensed Consolidated Statements of Earnings. |
Subsequent Event
| Subsequent Event | 6 Months Ended |
| Jan. 31, 2023 | |
| Subsequent Events [Abstract] | |
| Subsequent Event | Note 20. Subsequent Event On February 17, 2023, the Company acquired Isolere Bio, Inc. (Isolere), headquartered in Durham, North Carolina, U.S. for $62.5 million. Isolere delivers tailored manufacturing solutions designed to accelerate development to the clinical trial phase, reduce cost and challenges of scaling from clinical trials to commercial productions, and improve global access to life changing medicines and vaccines. Isolere will be reported within the Company’s Life Sciences segment. Management expects to finalize the purchase accounting by the second quarter of fiscal 2024. |
Summary of Significant Accoun_2
| Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
| Jan. 31, 2023 | |
| 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 a re of a normal recurring nature. Operating results for the three and six months ended January 31, 2023 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, 2022. As discussed in Note 18, effective November 1, 2022, the Company established a new segment reporting structure which resulted in three reportable segments: Mobile Solutions, Industrial Solutions and Life Sciences. |
| Principles Of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company and all 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. Certain reclassifications to previously reported financial information on the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Changes in Stockholders’ Equity have been made to conform to the current period presentation. |
| 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. Operating Environment Inflation While inflation was not as significant in the second quarter or the first six months of fiscal 2023, as compared to the prior year, the Company continues to experience the effects of inflation related to raw materials and other expenses, including labor and energy. These inflationary pressures have had an adverse impact on the Company’s profit margins throughout the second quarter and the first six months of fiscal 2023, however they have been generally mitigated by pricing actions implemented in the prior year. |
| 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 (FASB) Accounting Standards Updates (ASUs) issued but not yet adopted. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2024. The Company does not expect adoption of this standard will have a material impact on its financial statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820), Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair values; it also requires additional disclosures, including the nature and remaining duration of such restrictions. The guidance is effective for fiscal years beginning after December 15, 2023, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2025. The Company does not expect adoption of this standard will have a material impact on its financial statements. |
Acquisitions (Tables)
| Acquisitions (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Business Combination and Asset Acquisition [Abstract] | |
| Schedule of components of acquisitions, net of cash acquired | The components of acquisitions, net of cash acquired, as of each acquisition date (in millions): Intangible assets: Technology $ 45.9 Trademarks and tradenames 4.0 Customer relationships 3.0 Non-competition agreements 0.6 Backlog 0.2 Intangible assets acquired 53.7 Tangible liabilities, net (2.7) Assets acquired, net 51.0 Goodwill 42.8 Aggregate purchase price 93.8 Less contingent consideration (24.6) Less cash acquired (0.3) Acquisitions, net of cash acquired $ 68.9 |
Revenue (Tables)
| Revenue (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Revenue from Contract with Customer [Abstract] | |
| Schedule of disaggregation of revenue | Net sales, generally disaggregated by location where the customer’s order was placed, were as follows (in millions): Three Months Ended Six Months Ended 2023 2022 2023 2022 U.S. and Canada $ 346.4 $ 314.0 $ 721.7 $ 614.8 Europe, Middle East and Africa (EMEA) 252.1 241.7 478.8 466.3 Asia Pacific (APAC) 142.4 170.2 293.0 334.0 Latin America (LATAM) 87.4 76.6 182.1 148.3 Total net sales $ 828.3 $ 802.5 $ 1,675.6 $ 1,563.4 See Note 18 for net sales disaggregated by segment and business unit. |
Inventories, Net (Tables)
| Inventories, Net (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Inventory Disclosure [Abstract] | |
| Schedule of inventories | The components of inventories, net were as follows (in millions): January 31, July 31, Raw materials $ 190.3 $ 197.6 Work in process 59.6 56.1 Finished products 251.4 248.7 Total inventories, net $ 501.3 $ 502.4 |
Property, Plant and Equipment_2
| Property, Plant and Equipment, Net (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Property, Plant and Equipment [Abstract] | |
| Schedule of property, plant and equipment | The components of property, plant and equipment, net were as follows (in millions): January 31, July 31, Land $ 26.2 $ 25.6 Buildings 407.9 396.2 Machinery and equipment 974.2 940.1 Computer software 141.5 141.0 Construction in progress 110.6 72.1 Less accumulated depreciation (1,034.6) (980.6) Total property, plant and equipment, net $ 625.8 $ 594.4 |
Goodwill and Intangible Assets
| Goodwill and Intangible Assets (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Goodwill and Intangible Assets Disclosure [Abstract] | |
| Schedule of reconciliation of goodwill | Goodwill by reportable segment was as follows (in millions): Mobile Industrial Life Sciences Total Balance as of July 31, 2022 (1) $ 25.3 $ 282.1 $ 38.4 $ 345.8 Foreign currency translation — 2.9 1.5 4.4 Balance as of January 31, 2023 $ 25.3 $ 285.0 $ 39.9 $ 350.2 (1) All prior segment information has been recast to reflect the Company’s new segment structure and current period presentation (see Note 18). |
| Schedule of finite-lived intangible assets | Intangible asset classes were as follows (in millions): Customer Relationships Patents, Trademarks and Technology Gross Carrying Amount Accumulated Amortization Total Net Value Gross Carrying Amount Accumulated Amortization Total Net Value Total Balance as of July 31, 2022 $ 104.6 $ (60.3) $ 44.3 $ 71.9 $ (16.4) $ 55.5 $ 99.8 Amortization expense — (2.6) (2.6) — (2.5) (2.5) (5.1) Foreign currency translation 0.5 0.2 0.7 1.1 (0.1) 1.0 1.7 Balance as of January 31, 2023 $ 105.1 $ (62.7) $ 42.4 $ 73.0 $ (19.0) $ 54.0 $ 96.4 |
Earnings Per Share (Tables)
| Earnings Per Share (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Earnings Per Share [Abstract] | |
| Schedule of basic and diluted net earnings per share | Basic and diluted net EPS calculations were as follows (in millions, except per share amounts): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net earnings $ 86.0 $ 71.8 $ 173.2 $ 148.8 Weighted average common shares outstanding Weighted average common shares – basic 121.7 123.9 122.2 124.1 Dilutive impact of stock-based awards 1.6 1.7 1.5 1.9 Weighted average common shares – diluted 123.3 125.6 123.7 126.0 Net EPS – basic $ 0.71 $ 0.58 $ 1.42 $ 1.20 Net EPS – diluted $ 0.70 $ 0.57 $ 1.40 $ 1.18 Stock options excluded from net EPS calculation — 1.6 1.6 — |
Accumulated Other Comprehensi_2
| Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| 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 January 31, 2023 and 2022 were as follows (in millions): Foreign Pension Derivative Total Balance as of October 31, 2022, net of tax $ (183.7) $ (66.3) $ 10.1 $ (239.9) Other comprehensive income (loss) before reclassifications and tax 65.3 — (4.1) 61.2 Tax benefit — — 1.0 1.0 Other comprehensive income (loss) before reclassifications, net of tax 65.3 — (3.1) 62.2 Reclassifications, before tax — (1.0) (1) (2.7) (3.7) Tax benefit — 0.3 0.9 1.2 Reclassifications, net of tax — (0.7) (1.8) (2) (2.5) Other comprehensive income (loss), net of tax 65.3 (0.7) (4.9) 59.7 Balance as of January 31, 2023, net of tax $ (118.4) $ (67.0) $ 5.2 $ (180.2) Balance as of October 31, 2021, net of tax $ (54.5) $ (72.7) $ 1.8 $ (125.4) Other comprehensive (loss) income before reclassifications and tax (17.1) (1.7) (3) 0.9 (17.9) Tax benefit (expense) — 0.4 (0.2) 0.2 Other comprehensive (loss) income before reclassifications, net of tax (17.1) (1.3) 0.7 (17.7) Reclassifications, before tax — 4.3 (1) (0.5) 3.8 Tax (expense) benefit — (1.0) 0.2 (0.8) Reclassifications, net of tax — 3.3 (0.3) (2) 3.0 Other comprehensive (loss) income, net of tax (17.1) 2.0 0.4 (14.7) Balance as of January 31, 2022, net of tax $ (71.6) $ (70.7) $ 2.2 $ (140.1) (1) Amounts include foreign currency translation gain of $1.5 million and loss of $1.2 million and net amortization of prior service costs and actuarial losses of $0.5 million and $1.9 million in fiscal 2023 and 2022, respectively, as well as reclassifications of $1.2 million in fiscal 2022, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (2) Relates to designated foreign currency forward contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings, see Note 14. (3) In fiscal 2022, pension settlement accounting was triggered. Remeasurements of the Company’s pension obligations resulted in an increase of $1.7 million to accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets, see Note 13. Changes in accumulated other comprehensive loss for the six months ended January 31, 2023 and 2022 were as follows (in millions): Foreign Pension Derivative Total Balance as of July 31, 2022, net of tax $ (143.6) $ (67.5) $ 5.5 $ (205.6) Other comprehensive income before reclassifications and tax 25.2 — 0.4 25.6 Tax expense — — (0.1) (0.1) Other comprehensive income before reclassifications, net of tax 25.2 — 0.3 25.5 Reclassifications, before tax — 0.6 (1) (0.9) (0.3) Tax (expense) benefit — (0.1) 0.3 0.2 Reclassifications, net of tax — 0.5 (0.6) (2) (0.1) Other comprehensive income (loss), net of tax 25.2 0.5 (0.3) 25.4 Balance as of January 31, 2023, net of tax $ (118.4) $ (67.0) $ 5.2 $ (180.2) 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 (27.6) (1.7) (3) 2.1 (27.2) Tax benefit (expense) — 0.4 (0.4) — Other comprehensive (loss) income before reclassifications, net of tax (27.6) (1.3) 1.7 (27.2) Reclassifications, before tax — 6.8 (1) 0.1 6.9 Tax expense — (1.5) (0.1) (1.6) Reclassifications, net of tax — 5.3 — (2) 5.3 Other comprehensive (loss) income, net of tax (27.6) 4.0 1.7 (21.9) Balance as of January 31, 2022, net of tax $ (71.6) $ (70.7) $ 2.2 $ (140.1) (1) Amounts include foreign currency translation gain of $0.5 million and loss of $1.7 million and net amortization of prior service costs and actuarial losses of $1.1 million and $3.9 million in fiscal 2023 and 2022, respectively, as well as reclassifications of $1.2 million in fiscal 2022, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13. (2) Relates to designated foreign currency forward contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and selling, general and administrative expenses in the Condensed Consolidated Statements of Earnings, see Note 14. (3) In fiscal 2022, pension settlement accounting was triggered. Remeasurements of the Company’s pension obligations resulted in an increase of $1.7 million to accumulated other comprehensive loss on the Condensed Consolidated Balance Sheet, see Note 13. |
Stock-Based Compensation (Table
| Stock-Based Compensation (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
| Schedule of stock option activity | Option activity was as follows: Options Weighted Balance outstanding as of July 31, 2022 6,927,161 $ 46.32 Granted 911,900 51.21 Exercised (676,039) 39.18 Expired/forfeited (52,589) 53.56 Balance outstanding as of January 31, 2023 7,110,433 $ 47.57 |
| Schedule of performance shares activity | Performance-based awards for non-vested activity were as follows: Performance Shares Weighted Balance outstanding as of July 31, 2022 188,206 $ 52.20 Granted 113,100 50.89 Vested — — Forfeited (7,692) 54.76 Balance outstanding as of January 31, 2023 293,614 $ 51.63 |
Employee Benefit Plans (Tables)
| Employee Benefit Plans (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Retirement Benefits, Description [Abstract] | |
| Schedule of net periodic pension costs | Net periodic pension costs for the Company’s pension plans were as follows (in millions): Three Months Ended Six Months Ended 2023 2022 2023 2022 Service cost $ 1.6 $ 1.8 $ 3.2 $ 3.6 Interest cost 4.2 2.5 8.3 5.0 Expected return on assets (6.4) (6.2) (12.7) (12.5) Prior service cost amortization 0.1 — 0.1 0.1 Actuarial loss amortization 0.5 1.8 1.1 3.6 Settlement charge — 1.2 — 1.2 Net periodic pension costs $ — $ 1.1 $ — $ 1.0 |
Fair Value Measurements (Tables
| Fair Value Measurements (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| 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): Assets Liabilities Balance Sheet Location January 31, July 31, January 31, July 31, Designated as hedging instruments Foreign currency forward contracts Other current assets, other current liabilities $ 1.0 $ 0.3 $ 1.9 $ 2.7 Net investment hedges Other current assets and other long-term assets 6.0 8.2 — — Total designated 7.0 8.5 1.9 2.7 Not designated as hedging instruments Foreign currency forward contracts Other current assets, other current liabilities 0.6 1.7 1.7 2.5 Total not designated 0.6 1.7 1.7 2.5 Total $ 7.6 $ 10.2 $ 3.6 $ 5.2 |
Guarantees (Tables)
| Guarantees (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Guarantees [Abstract] | |
| Schedule of guarantor obligations | The outstanding contingent liability for standby letters of credit was as follows (in millions): January 31, July 31, Contingent liability for standby letters of credit issued under the Company’s revolving credit facility $ 7.5 $ 7.5 Amounts drawn for letters of credit under the Company’s revolving credit facility $ — $ — |
Segment Reporting (Tables)
| Segment Reporting (Tables) | 6 Months Ended |
| Jan. 31, 2023 | |
| Segment Reporting, Measurement Disclosures [Abstract] | |
| Schedule of segment details | Segment details were as follows (in millions): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales Mobile Solutions $ 522.5 $ 513.5 $ 1,077.4 $ 1,000.8 Industrial Solutions 246.4 218.5 476.0 419.3 Life Sciences 59.4 70.5 122.2 143.3 Total Company $ 828.3 $ 802.5 $ 1,675.6 $ 1,563.4 Earnings (loss) before income taxes Mobile Solutions $ 78.6 $ 58.6 $ 158.9 $ 124.2 Industrial Solutions 46.3 27.2 83.9 51.8 Life Sciences 6.3 16.7 17.1 37.1 Corporate and unallocated (17.9) (8.0) (30.1) (14.6) Total Company $ 113.3 $ 94.5 $ 229.8 $ 198.5 Net sales by business unit were as follows (in millions): Three Months Ended Six Months Ended 2023 2022 2023 2022 Mobile Solutions segment Off-Road $ 106.2 $ 91.9 $ 209.8 $ 182.3 On-Road 34.5 33.1 70.5 64.6 Aftermarket 381.8 388.5 797.1 753.9 Total Mobile Solutions segment 522.5 513.5 1,077.4 1,000.8 Industrial Solutions segment Industrial Filtration Solutions 211.8 191.4 407.8 364.7 Aerospace and Defense 34.6 27.1 68.2 54.6 Total Industrial Solutions segment 246.4 218.5 476.0 419.3 Life Sciences segment Total Life Sciences segment 59.4 70.5 122.2 143.3 Total Company $ 828.3 $ 802.5 $ 1,675.6 $ 1,563.4 |
| Reconciliation of assets from segment | Assets by segment were as follows (in millions): January 31, 2023 July 31, 2022 Mobile Solutions $ 1,308.0 $ 1,319.4 Industrial Solutions 793.9 816.0 Life Sciences 281.0 267.8 Corporate and unallocated 195.7 197.1 Total assets $ 2,578.6 $ 2,600.3 |
Acquisitions (Narrative) (Detai
| Acquisitions (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | |||
| Jul. 31, 2022 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2022 EUR (€) | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
| Business Acquisition | |||||
| Acquisitions, net of cash acquired | $ 0 | $ 49 | |||
| PAIS | |||||
| Business Acquisition | |||||
| Acquisitions, net of cash acquired | $ 3.3 | ||||
| Maximum payout | 1.7 | $ 1.7 | |||
| Solaris | |||||
| Business Acquisition | |||||
| Acquisitions, net of cash acquired | $ 45.7 | € 41 | |||
| Purilogics, LLC | |||||
| Business Acquisition | |||||
| Acquisitions, net of cash acquired | $ 19.9 | ||||
| Maximum payout | $ 29 | $ 29 | |||
Acquisitions (Schedule of compo
| Acquisitions (Schedule of components of acquisitions, net of cash acquired) (Details) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | |
| Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | |
| Business Acquisition | |||
| Goodwill | $ 350.2 | $ 345.8 | |
| Acquisitions, net of cash acquired | $ 0 | $ 49 | |
| 2022 Acquisitions | |||
| Business Acquisition | |||
| Intangible assets: | 53.7 | ||
| Tangible liabilities, net | (2.7) | ||
| Assets acquired, net | 51 | ||
| Goodwill | 42.8 | ||
| Aggregate purchase price | 93.8 | ||
| Less contingent consideration | (24.6) | ||
| Less cash acquired | (0.3) | ||
| Acquisitions, net of cash acquired | 68.9 | ||
| Technology | 2022 Acquisitions | |||
| Business Acquisition | |||
| Intangible assets: | 45.9 | ||
| Trademarks and tradenames | 2022 Acquisitions | |||
| Business Acquisition | |||
| Intangible assets: | 4 | ||
| Customer Relationships | 2022 Acquisitions | |||
| Business Acquisition | |||
| Intangible assets: | 3 | ||
| Non-competition agreements | 2022 Acquisitions | |||
| Business Acquisition | |||
| Intangible assets: | 0.6 | ||
| Backlog | 2022 Acquisitions | |||
| Business Acquisition | |||
| Intangible assets: | $ 0.2 | ||
Revenue (Disaggregation of Reve
| Revenue (Disaggregation of Revenue by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Disaggregation of Revenue | ||||
| Total net sales | $ 828.3 | $ 802.5 | $ 1,675.6 | $ 1,563.4 |
| U.S. and Canada | ||||
| Disaggregation of Revenue | ||||
| Total net sales | 346.4 | 314 | 721.7 | 614.8 |
| Europe, Middle East and Africa (EMEA) | ||||
| Disaggregation of Revenue | ||||
| Total net sales | 252.1 | 241.7 | 478.8 | 466.3 |
| Asia Pacific (APAC) | ||||
| Disaggregation of Revenue | ||||
| Total net sales | 142.4 | 170.2 | 293 | 334 |
| Latin America (LATAM) | ||||
| Disaggregation of Revenue | ||||
| Total net sales | $ 87.4 | $ 76.6 | $ 182.1 | $ 148.3 |
Revenue (Narrative) (Details)
| Revenue (Narrative) (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Revenue from Contract with Customer [Abstract] | ||
| Contract assets | $ 17.7 | $ 17.7 |
| Contract liabilities | $ 30.9 | $ 22.3 |
Inventories, Net (Details)
| Inventories, Net (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Inventory, Net | ||
| Raw materials | $ 190.3 | $ 197.6 |
| Work in process | 59.6 | 56.1 |
| Finished products | 251.4 | 248.7 |
| Total inventories, net | $ 501.3 | $ 502.4 |
Property, Plant and Equipment_3
| Property, Plant and Equipment, Net (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Property, Plant and Equipment | ||
| Less accumulated depreciation | $ (1,034.6) | $ (980.6) |
| Property, plant and equipment, net | 625.8 | 594.4 |
| Land | ||
| Property, Plant and Equipment | ||
| Property, plant and equipment, gross | 26.2 | 25.6 |
| Buildings | ||
| Property, Plant and Equipment | ||
| Property, plant and equipment, gross | 407.9 | 396.2 |
| Machinery and equipment | ||
| Property, Plant and Equipment | ||
| Property, plant and equipment, gross | 974.2 | 940.1 |
| Computer software | ||
| Property, Plant and Equipment | ||
| Property, plant and equipment, gross | 141.5 | 141 |
| Construction in progress | ||
| Property, Plant and Equipment | ||
| Property, plant and equipment, gross | $ 110.6 | $ 72.1 |
Goodwill and Intangible Asset_2
| Goodwill and Intangible Assets (Reconciliation of Goodwill) (Details) $ in Millions | 6 Months Ended |
| Jan. 31, 2023 USD ($) | |
| Goodwill | |
| Beginning balance | $ 345.8 |
| Foreign currency translation | 4.4 |
| Ending balance | 350.2 |
| Mobile Solutions | |
| Goodwill | |
| Beginning balance | 25.3 |
| Foreign currency translation | 0 |
| Ending balance | 25.3 |
| Industrial Solutions | |
| Goodwill | |
| Beginning balance | 282.1 |
| Foreign currency translation | 2.9 |
| Ending balance | 285 |
| Life Sciences | |
| Goodwill | |
| Beginning balance | 38.4 |
| Foreign currency translation | 1.5 |
| Ending balance | $ 39.9 |
Goodwill and Intangible Asset_3
| Goodwill and Intangible Assets (Reconciliation of Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Total Net Value | ||||
| Intangible assets, net, beginning balance | $ 99.8 | |||
| Amortization expense | $ (2.5) | $ (2.4) | (5.1) | $ (4.5) |
| Foreign currency translation | 1.7 | |||
| Intangible assets, net, ending balance | 96.4 | 96.4 | ||
| Customer Relationships | ||||
| Gross Carrying Amount | ||||
| Gross carrying amount beginning balance | 104.6 | |||
| Amortization expense | 0 | |||
| Foreign currency translation | 0.5 | |||
| Gross carrying amount ending balance | 105.1 | 105.1 | ||
| Accumulated Amortization | ||||
| Accumulated amortization beginning balance | (60.3) | |||
| Amortization expense | (2.6) | |||
| Foreign currency translation | 0.2 | |||
| Accumulated amortization ending balance | (62.7) | (62.7) | ||
| Total Net Value | ||||
| Intangible assets, net, beginning balance | 44.3 | |||
| Amortization expense | (2.6) | |||
| Foreign currency translation | 0.7 | |||
| Intangible assets, net, ending balance | 42.4 | 42.4 | ||
| Patents, Trademarks and Technology | ||||
| Gross Carrying Amount | ||||
| Gross carrying amount beginning balance | 71.9 | |||
| Amortization expense | 0 | |||
| Foreign currency translation | 1.1 | |||
| Gross carrying amount ending balance | 73 | 73 | ||
| Accumulated Amortization | ||||
| Accumulated amortization beginning balance | (16.4) | |||
| Amortization expense | (2.5) | |||
| Foreign currency translation | (0.1) | |||
| Accumulated amortization ending balance | (19) | (19) | ||
| Total Net Value | ||||
| Intangible assets, net, beginning balance | 55.5 | |||
| Amortization expense | (2.5) | |||
| Foreign currency translation | 1 | |||
| Intangible assets, net, ending balance | $ 54 | $ 54 | ||
Goodwill and Intangible Asset_4
| Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Goodwill and Intangible Assets Disclosure [Abstract] | ||||
| Amortization expense | $ 2.5 | $ 2.4 | $ 5.1 | $ 4.5 |
Long-Term Debt (Details)
| Long-Term Debt (Details) - Unsecured revolving credit facility | Jan. 31, 2023 USD ($) |
| Debt Instrument | |
| Maximum borrowing capacity | $ 63,000,000 |
| Unsecured revolving credit facility | |
| Debt Instrument | |
| Remaining borrowing capacity | 392,500,000 |
| Line of credit | 100,000,000 |
| Maximum borrowing capacity | $ 500,000,000 |
Income Taxes (Details)
| Income Taxes (Details) $ in Millions | 6 Months Ended |
| Jan. 31, 2023 USD ($) | |
| Income Tax Disclosure [Abstract] | |
| Unrecognized tax benefits | $ 16.2 |
| Accrued interest and penalties on unrecognized tax benefits | 1.6 |
| Unrecognized reduction from lapse of statute of limitations | $ 3.2 |
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 | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Earnings Per Share [Abstract] | ||||
| Net earnings | $ 86 | $ 71.8 | $ 173.2 | $ 148.8 |
| Weighted average common shares outstanding | ||||
| Weighted average common shares - basic (in shares) | 121.7 | 123.9 | 122.2 | 124.1 |
| Dilutive impact of share-based awards (in shares) | 1.6 | 1.7 | 1.5 | 1.9 |
| Weighted average common shares - diluted (in shares) | 123.3 | 125.6 | 123.7 | 126 |
| Net EPS - basic (in usd per share) | $ 0.71 | $ 0.58 | $ 1.42 | $ 1.20 |
| Net EPS - diluted (in usd per share) | $ 0.70 | $ 0.57 | $ 1.40 | $ 1.18 |
| Stock options excluded from net EPS calculation (in shares) | 0 | 1.6 | 1.6 | 0 |
Stockholders' Equity (Details)
| Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Stockholders' Equity Note [Abstract] | ||||
| Number of shares authorized to be repurchased (in shares) | 13,000,000 | 13,000,000 | ||
| Stock repurchased during the period (in shares) | 2,100,000 | 1,800,000 | ||
| Stock repurchased during the period | $ 115.2 | $ 115.6 | ||
| Shares with remaining authorization for repurchase under stock repurchase plan (in shares) | 3,300,000 | 3,300,000 | ||
| Dividends paid per share (in usd per share) | $ 0.23 | $ 0.22 | $ 0.46 | $ 0.44 |
Accumulated Other Comprehensi_3
| Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | |
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Beginning balance | $ 1,154.8 | $ 1,115.9 | $ 1,133.2 | $ 1,137.1 | $ 1,137.1 |
| Other comprehensive income (loss) before reclassifications and tax | 61.2 | (17.9) | 25.6 | (27.2) | |
| Tax benefit (expense) | 1 | 0.2 | (0.1) | 0 | |
| Other comprehensive income (loss) before reclassifications, net of tax | 62.2 | (17.7) | 25.5 | (27.2) | |
| Reclassifications, before tax | 3.7 | (3.8) | 0.3 | (6.9) | |
| Tax (expense) benefit | 1.2 | (0.8) | 0.2 | (1.6) | |
| Reclassifications, net of tax | (2.5) | 3 | (0.1) | 5.3 | |
| Net other comprehensive income (loss) | 59.7 | (14.7) | 25.4 | (21.9) | |
| Ending balance | 1,194.2 | 1,116.8 | 1,194.2 | 1,116.8 | 1,133.2 |
| Total | |||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Beginning balance | (239.9) | (125.4) | (205.6) | (118.2) | (118.2) |
| Net other comprehensive income (loss) | 59.7 | (14.7) | 25.4 | (21.9) | |
| Ending balance | (180.2) | (140.1) | (180.2) | (140.1) | (205.6) |
| Foreign Currency Translation Adjustment | |||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Beginning balance | (183.7) | (54.5) | (143.6) | (44) | (44) |
| Other comprehensive income (loss) before reclassifications and tax | 65.3 | (17.1) | 25.2 | (27.6) | |
| Tax benefit (expense) | 0 | 0 | 0 | 0 | |
| Other comprehensive income (loss) before reclassifications, net of tax | 65.3 | (17.1) | 25.2 | (27.6) | |
| Reclassifications, before tax | 0 | 0 | 0 | 0 | |
| Tax (expense) benefit | 0 | 0 | 0 | 0 | |
| Reclassifications, net of tax | 0 | 0 | 0 | 0 | |
| Net other comprehensive income (loss) | 65.3 | (17.1) | 25.2 | (27.6) | |
| Ending balance | (118.4) | (71.6) | (118.4) | (71.6) | (143.6) |
| Pension Benefits | |||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Beginning balance | (66.3) | (72.7) | (67.5) | (74.7) | (74.7) |
| Other comprehensive income (loss) before reclassifications and tax | 0 | (1.7) | 0 | (1.7) | |
| Tax benefit (expense) | 0 | 0.4 | 0 | 0.4 | |
| Other comprehensive income (loss) before reclassifications, net of tax | 0 | (1.3) | 0 | (1.3) | |
| Reclassifications, before tax | 1 | (4.3) | (0.6) | (6.8) | |
| Tax (expense) benefit | 0.3 | (1) | (0.1) | (1.5) | |
| Reclassifications, net of tax | (0.7) | 3.3 | 0.5 | 5.3 | |
| Net other comprehensive income (loss) | (0.7) | 2 | 0.5 | 4 | |
| Ending balance | (67) | (70.7) | (67) | (70.7) | (67.5) |
| Pension Benefits | Scenario, Adjustment | |||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Other comprehensive income (loss) before reclassifications and tax | (1.7) | 1.7 | |||
| Reclassifications, before tax | 1.2 | 1.2 | |||
| Derivative Financial Instruments | |||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Beginning balance | 10.1 | 1.8 | 5.5 | 0.5 | 0.5 |
| Other comprehensive income (loss) before reclassifications and tax | (4.1) | 0.9 | 0.4 | 2.1 | |
| Tax benefit (expense) | 1 | (0.2) | (0.1) | (0.4) | |
| Other comprehensive income (loss) before reclassifications, net of tax | (3.1) | 0.7 | 0.3 | 1.7 | |
| Reclassifications, before tax | 2.7 | 0.5 | 0.9 | (0.1) | |
| Tax (expense) benefit | 0.9 | 0.2 | 0.3 | (0.1) | |
| Reclassifications, net of tax | (1.8) | (0.3) | (0.6) | 0 | |
| Net other comprehensive income (loss) | (4.9) | 0.4 | (0.3) | 1.7 | |
| Ending balance | 5.2 | 2.2 | 5.2 | 2.2 | $ 5.5 |
| Accumulated Defined Benefit Plans Adjustment, Foreign Currency Translation Attributable To Parent | Scenario, Adjustment | |||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Reclassifications, before tax | 1.5 | (1.2) | 0.5 | (1.7) | |
| Net amortization of prior service cost and actuarial losses | Scenario, Adjustment | |||||
| Accumulated Other Comprehensive Income (Loss), Net of Tax | |||||
| Other comprehensive income (loss) before reclassifications and tax | $ (0.5) | $ (1.9) | $ (1.1) | $ (3.9) | |
Stock-Based Compensation (Narra
| Stock-Based Compensation (Narratives) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Share-based Compensation Arrangement by Share-based Payment Award | ||||
| Options granted, grant date fair value (in usd per share) | $ 15.62 | $ 14.27 | ||
| Employee Stock Option | ||||
| Share-based Compensation Arrangement by Share-based Payment Award | ||||
| Pretax performance-based award expense (adjustments) | $ 1.8 | $ 1.9 | $ 9.3 | $ 8.8 |
| Performance Shares | ||||
| Share-based Compensation Arrangement by Share-based Payment Award | ||||
| Pretax performance-based award expense (adjustments) | $ 1.7 | $ 2.1 | $ 3.5 | $ 3.8 |
| 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 (as a percent) | 0% | |||
| 2019 Master Stock Incentive Plan | Performance Shares | Maximum | ||||
| Share-based Compensation Arrangement by Share-based Payment Award | ||||
| Payout percentage based on target award (as a percent) | 200% | |||
Stock-Based Compensation (Summa
| Stock-Based Compensation (Summary of Stock Option Activity) (Details) | 6 Months Ended |
| Jan. 31, 2023 $ / shares shares | |
| Options | |
| Beginning balance (in shares) | shares | 6,927,161 |
| Options granted (in shares) | shares | 911,900 |
| Options exercised (in shares) | shares | (676,039) |
| Options expired/forfeited (in shares) | shares | (52,589) |
| Ending balance (in shares) | shares | 7,110,433 |
| Weighted Average Exercise Price | |
| Beginning balance (in usd per share) | $ / shares | $ 46.32 |
| Granted (in usd per share) | $ / shares | 51.21 |
| Exercised (in usd per share) | $ / shares | 39.18 |
| Expired/forfeited (in usd per share) | $ / shares | 53.56 |
| Ending balance (in usd per share) | $ / shares | $ 47.57 |
Stock-Based Compensation (Sum_2
| Stock-Based Compensation (Summary of Performance Award Activity) (Details) - Performance Shares | 6 Months Ended |
| Jan. 31, 2023 $ / shares shares | |
| Performance Shares | |
| Beginning balance (in shares) | shares | 188,206 |
| Granted (in shares) | shares | 113,100 |
| Vested (in shares) | shares | 0 |
| Forfeited (in shares) | shares | (7,692) |
| Ending balance (in shares) | shares | 293,614 |
| Weighted Average Grant Date Fair Value | |
| Beginning balance (in usd per share) | $ / shares | $ 52.20 |
| Granted (in usd per share) | $ / shares | 50.89 |
| Vested (in usd per share) | $ / shares | 0 |
| Forfeited (in usd per share) | $ / shares | 54.76 |
| Ending balance (in usd per share) | $ / shares | $ 51.63 |
Employee Benefit Plans (Compone
| Employee Benefit Plans (Components of Net Periodic Pension Costs) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | |
| Net periodic benefit costs | ||||
| Service cost | $ 1.6 | $ 1.8 | $ 3.2 | $ 3.6 |
| Interest cost | 4.2 | 2.5 | 8.3 | 5 |
| Expected return on assets | (6.4) | (6.2) | (12.7) | (12.5) |
| Prior service cost amortization | 0.1 | 0 | 0.1 | 0.1 |
| Actuarial loss amortization | 0.5 | 1.8 | 1.1 | 3.6 |
| Settlement charge | 0 | 1.2 | 0 | 1.2 |
| Net periodic pension costs | $ 0 | $ 1.1 | $ 0 | $ 1 |
Employee Benefit Plans (Narrati
| Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | |
| Defined Benefit Plan, Plan Assets, Allocation | |||||
| Settlement charge | $ 0 | $ 1.2 | $ 0 | $ 1.2 | |
| Other comprehensive income (loss) before reclassifications and tax | 61.2 | (17.9) | 25.6 | (27.2) | |
| Pension Benefits | |||||
| Defined Benefit Plan, Plan Assets, Allocation | |||||
| Other comprehensive income (loss) before reclassifications and tax | $ 0 | (1.7) | $ 0 | $ (1.7) | |
| Scenario, Adjustment | Pension Benefits | |||||
| Defined Benefit Plan, Plan Assets, Allocation | |||||
| Other comprehensive income (loss) before reclassifications and tax | $ (1.7) | $ 1.7 | |||
Derivative Instruments and He_2
| Derivative Instruments and Hedging (Details) € in Millions, $ in Millions | 6 Months Ended | |||
| Jan. 31, 2023 USD ($) | Jan. 31, 2023 EUR (€) | Jul. 31, 2022 USD ($) | Jul. 31, 2022 EUR (€) | |
| Fair Value, Inputs, Level 2 | Designated as hedging instruments | Net investment hedges | ||||
| Derivative [Line Items] | ||||
| Notional amount | $ 88.8 | € 80 | $ 88.8 | € 80 |
| Foreign currency forward contracts | ||||
| Derivative [Line Items] | ||||
| Derivative instrument term (in months) | 12 months | |||
| Foreign currency forward contracts | Fair Value, Inputs, Level 2 | Designated as hedging instruments | ||||
| Derivative [Line Items] | ||||
| Notional amount | $ 77.2 | 158 | ||
| Foreign currency forward contracts | Fair Value, Inputs, Level 2 | Not designated as hedging instruments | ||||
| Derivative [Line Items] | ||||
| Notional amount | $ 207.9 | $ 151.6 | ||
Fair Value Measurements (Narrat
| Fair Value Measurements (Narrative) (Details) - USD ($) | Jan. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2022 |
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
| Contingent consideration liability, fair value | $ 24,700,000 | $ 24,700,000 | |
| Maximum payout, fair value | 30,700,000 | 30,700,000 | |
| Contingent consideration | $ 0 | ||
| Fair Value, Inputs, Level 3 | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
| Equity method investments | 20,500,000 | 22,400,000 | |
| Fixed Interest Rate | Fair Value, Inputs, Level 2 | Fair Value | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
| Debt instrument, fair value disclosure | 386,400,000 | 396,900,000 | |
| Fixed Interest Rate | Fair Value, Inputs, Level 2 | Carrying Value | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
| Debt instrument, fair value disclosure | 425,000,000 | 425,000,000 | |
| Variable Interest Rate | Fair Value, Inputs, Level 2 | Fair Value | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
| Debt instrument, fair value disclosure | 201,900,000 | 221,700,000 | |
| Variable Interest Rate | Fair Value, Inputs, Level 2 | Carrying Value | |||
| Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
| Debt instrument, fair value disclosure | $ 201,900,000 | $ 221,700,000 |
Fair Value Measurements (Deriva
| Fair Value Measurements (Derivatives on the Balance Sheet) (Details) - Fair Value, Inputs, Level 2 - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
| Derivative assets | $ 7.6 | $ 10.2 |
| Derivative liabilities | 3.6 | 5.2 |
| Designated as hedging instruments | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
| Derivative assets | 7 | 8.5 |
| Derivative liabilities | 1.9 | 2.7 |
| Designated as hedging instruments | Net investment hedges | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
| Derivative assets | 6 | 8.2 |
| Derivative liabilities | 0 | 0 |
| Designated as hedging instruments | Foreign currency forward contracts | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
| Derivative assets | 1 | 0.3 |
| Derivative liabilities | 1.9 | 2.7 |
| Not designated as hedging instruments | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
| Derivative assets | 0.6 | 1.7 |
| Derivative liabilities | 1.7 | 2.5 |
| Not designated as hedging instruments | Foreign currency forward contracts | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
| Derivative assets | 0.6 | 1.7 |
| Derivative liabilities | $ 1.7 | $ 2.5 |
Guarantees (Balance Sheet) (Det
| Guarantees (Balance Sheet) (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Guarantees [Abstract] | ||
| Contingent liability for standby letters of credit issued under the Company’s revolving credit facility | $ 7.5 | $ 7.5 |
| Amounts drawn for letters of credit under the Company’s revolving credit facility | $ 0 | $ 0 |
Guarantees (Narrative) (Details
| Guarantees (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
| Jan. 31, 2023 | Jan. 31, 2022 | Jan. 31, 2023 | Jan. 31, 2022 | Jul. 31, 2022 | |
| Guarantor Obligations | |||||
| Investment earnings | $ 500,000 | $ 2,000,000 | $ 1,800,000 | $ 3,200,000 | |
| Unsecured revolving credit facility | |||||
| Guarantor Obligations | |||||
| Available credit facilities | 63,000,000 | 63,000,000 | |||
| Multi-Currency Revolving Credit Facility | |||||
| Guarantor Obligations | |||||
| Available credit facilities | 17,000,000 | 17,000,000 | |||
| Advanced Filtration Systems, Inc. | |||||
| Guarantor Obligations | |||||
| AFSI outstanding debt | $ 64,800,000 | $ 64,800,000 | $ 68,800,000 | ||
Commitments and Contingencies (
| Commitments and Contingencies (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
| Jan. 31, 2023 | Jul. 31, 2022 | Jan. 31, 2022 | |
| Business Acquisition | |||
| Contingent consideration | $ 0 | ||
| Purilogics, LLC | |||
| Business Acquisition | |||
| Contingent consideration, non current | $ 600,000 | $ 100,000 | |
| Contingent compensation arrangements | 3,000,000 | 3,000,000 | |
| Less contingent consideration | 23,000,000 | 23,000,000 | |
| Maximum payout | 29,000,000 | 29,000,000 | |
| Contingent consideration | $ 23,000,000 | 23,000,000 | |
| Purilogics, LLC | Minimum | |||
| Business Acquisition | |||
| Contingent consideration, terminating (in years) | 3 years | ||
| Purilogics, LLC | Maximum | |||
| Business Acquisition | |||
| Contingent consideration, terminating (in years) | 5 years | ||
| Other acquisitions | |||
| Business Acquisition | |||
| Less contingent consideration | $ 1,700,000 | 1,700,000 | |
| Maximum payout | 3,100,000 | ||
| Contingent consideration | $ 600,000 | $ 300,000 | |
| Other acquisitions | Minimum | |||
| Business Acquisition | |||
| Contingent consideration, terminating (in years) | 3 years | 3 years | |
| Other acquisitions | Maximum | |||
| Business Acquisition | |||
| Contingent consideration, terminating (in years) | 5 years |
Segment Reporting - Schedule of
| Segment Reporting - Schedule of Segment Report (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
| Nov. 01, 2022 segment | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | Jan. 31, 2023 USD ($) | Jan. 31, 2022 USD ($) | |
| Segment Reporting Information | |||||
| Number of reportable segments | segment | 3 | ||||
| Net sales | $ 828.3 | $ 802.5 | $ 1,675.6 | $ 1,563.4 | |
| Earnings (loss) before income taxes | 113.3 | 94.5 | 229.8 | 198.5 | |
| Operating Segments | |||||
| Segment Reporting Information | |||||
| Net sales | 828.3 | 802.5 | 1,675.6 | 1,563.4 | |
| Corporate and unallocated | |||||
| Segment Reporting Information | |||||
| Earnings (loss) before income taxes | (17.9) | (8) | (30.1) | (14.6) | |
| Mobile Solutions | Operating Segments | |||||
| Segment Reporting Information | |||||
| Net sales | 522.5 | 513.5 | 1,077.4 | 1,000.8 | |
| Earnings (loss) before income taxes | 78.6 | 58.6 | 158.9 | 124.2 | |
| Mobile Solutions | Operating Segments | Off-Road | |||||
| Segment Reporting Information | |||||
| Net sales | 106.2 | 91.9 | 209.8 | 182.3 | |
| Mobile Solutions | Operating Segments | On-Road | |||||
| Segment Reporting Information | |||||
| Net sales | 34.5 | 33.1 | 70.5 | 64.6 | |
| Mobile Solutions | Operating Segments | Aftermarket | |||||
| Segment Reporting Information | |||||
| Net sales | 381.8 | 388.5 | 797.1 | 753.9 | |
| Industrial Solutions | Operating Segments | |||||
| Segment Reporting Information | |||||
| Net sales | 246.4 | 218.5 | 476 | 419.3 | |
| Earnings (loss) before income taxes | 46.3 | 27.2 | 83.9 | 51.8 | |
| Industrial Solutions | Operating Segments | Industrial Filtration Solutions | |||||
| Segment Reporting Information | |||||
| Net sales | 211.8 | 191.4 | 407.8 | 364.7 | |
| Industrial Solutions | Operating Segments | Aerospace and Defense | |||||
| Segment Reporting Information | |||||
| Net sales | 34.6 | 27.1 | 68.2 | 54.6 | |
| Life Sciences | Operating Segments | |||||
| Segment Reporting Information | |||||
| Net sales | 59.4 | 70.5 | 122.2 | 143.3 | |
| Earnings (loss) before income taxes | $ 6.3 | $ 16.7 | $ 17.1 | $ 37.1 | |
Segment Reporting - Assets by S
| Segment Reporting - Assets by Segment (Details) - USD ($) $ in Millions | Jan. 31, 2023 | Jul. 31, 2022 |
| Segment Reporting Information | ||
| Total assets | $ 2,578.6 | $ 2,600.3 |
| Operating Segments | Mobile Solutions | ||
| Segment Reporting Information | ||
| Total assets | 1,308 | 1,319.4 |
| Operating Segments | Industrial Solutions | ||
| Segment Reporting Information | ||
| Total assets | 793.9 | 816 |
| Operating Segments | Life Sciences | ||
| Segment Reporting Information | ||
| Total assets | 281 | 267.8 |
| Corporate and unallocated | ||
| Segment Reporting Information | ||
| Total assets | $ 195.7 | $ 197.1 |
Restructuring and Other Charg_2
| Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | ||
| Jan. 31, 2023 | Oct. 31, 2022 | Jan. 31, 2022 | |
| Restructuring Cost and Reserve | |||
| Restructuring charges | $ 9.3 | $ 7.6 | |
| Severance costs | 3.1 | 4.2 | |
| other restructuring costs | 1.4 | $ 3.4 | |
| Lower-margin customer program | $ 4.8 | ||
| Cost of Sales | |||
| Restructuring Cost and Reserve | |||
| Restructuring charges | $ 1.5 | ||
| Selling, General and Administrative Expenses | |||
| Restructuring Cost and Reserve | |||
| Restructuring charges | $ 7.8 | ||
Subsequent Event (Details)
| Subsequent Event (Details) $ in Millions | Feb. 17, 2023 USD ($) |
| Subsequent Event | Isolere Bio | |
| Subsequent Event [Line Items] | |
| Payments to acquire businesses | $ 62.5 |