Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jan. 31, 2016 | Feb. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | DONALDSON CO INC | |
Entity Central Index Key | 29,644 | |
Current Fiscal Year End Date | --07-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 132,940,932 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Earnings - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 517,200 | $ 588,500 | $ 1,055,200 | $ 1,185,000 |
Cost of sales | 346,400 | 385,400 | 706,300 | 772,800 |
Gross profit | 170,800 | 203,100 | 348,900 | 412,200 |
Operating expenses | 117,100 | 137,300 | 239,700 | 269,400 |
Operating income | 53,700 | 65,800 | 109,200 | 142,800 |
Interest expense | 5,500 | 3,700 | 10,500 | 7,200 |
Other income, net | (1,200) | (3,300) | (4,100) | (7,100) |
Earnings before income taxes | 49,400 | 65,400 | 102,800 | 142,700 |
Income taxes | 11,400 | 17,400 | 26,300 | 38,800 |
Net earnings | $ 38,000 | $ 48,000 | $ 76,500 | $ 103,900 |
Weighted average shares - basic (in shares) | 133.7 | 138 | 133.8 | 138.8 |
Weighted average shares - diluted (in shares) | 134.4 | 139.7 | 134.7 | 140.6 |
Net earnings per share - basic (in usd per share) | $ 0.28 | $ 0.35 | $ 0.57 | $ 0.75 |
Net earnings per share - diluted (in usd per share) | 0.28 | 0.34 | 0.57 | 0.74 |
Dividends paid per share (in usd per share) | $ 0.170 | $ 0.165 | $ 0.340 | $ 0.330 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 38,000 | $ 48,000 | $ 76,500 | $ 103,900 |
Foreign currency translation loss | (18,800) | (53,700) | (29,400) | (96,500) |
Net gain (loss) on hedging derivatives, net of deferred taxes of ($0.1), ($0.1), $0.2 and ($0.7), respectively | (100) | 200 | (700) | 1,200 |
Pension and postretirement liability adjustment, net of deferred taxes of $9.5, ($4.1), $10.7 and ($4.4), respectively | (16,300) | 7,300 | (17,300) | 12,200 |
Total comprehensive income | $ 2,800 | $ 1,800 | $ 29,100 | $ 20,800 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Gain (loss) on hedging derivatives, deferred taxes | $ (0.1) | $ (0.1) | $ 0.2 | $ (0.7) |
Pension and postretirement liability adjustment, deferred taxes | $ 9.5 | $ (4.1) | $ 10.7 | $ (4.4) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 31, 2016 | Jul. 31, 2015 |
Current assets | ||
Cash and cash equivalents | $ 222.1 | $ 189.9 |
Short-term investments | 9.8 | 27.5 |
Accounts receivable, less allowance of $6.5 and $6.7 | 402.7 | 460 |
Inventories | 274.8 | 265 |
Prepaids and other current assets | 97.3 | 88.3 |
Total current assets | 1,006.7 | 1,030.7 |
Property, plant, and equipment, at cost | 1,149.4 | 1,128.1 |
Less accumulated depreciation | (677.6) | (657.5) |
Property, plant, and equipment, net | 471.8 | 470.6 |
Goodwill | 228.5 | 223.7 |
Intangible assets, net | 41.7 | 37.9 |
Other assets | 40.2 | 46.6 |
Total assets | 1,788.9 | 1,809.5 |
Current liabilities | ||
Short-term borrowings | 261.4 | 187.3 |
Current maturities of long-term debt | 1.2 | 1.8 |
Trade accounts payable | 150.1 | 179.2 |
Other current liabilities | 174.8 | 192.3 |
Total current liabilities | 587.5 | 560.6 |
Long-term debt | 389 | 389.2 |
Deferred income taxes | 3.3 | 12.5 |
Other long-term liabilities | 103.3 | 68.5 |
Total liabilities | 1,083.1 | 1,030.8 |
Shareholders' equity | ||
Preferred stock, $1.00 par value, 1,000,000 shares authorized,, none issued | 0 | 0 |
Common stock, $5.00 par value, 240,000,000 shares authorized, 151,643,194 shares issued | 758.2 | 758.2 |
Retained earnings | 843.5 | 815.2 |
Non-controlling interest | 4 | 3.9 |
Stock compensation plans | 16.7 | 17.9 |
Accumulated other comprehensive loss | (209.4) | (162) |
Treasury stock at cost, 18,712,985 and 17,044,950 shares at January 31, 2016 and July 31, 2015, respectively | (707.2) | (654.5) |
Total shareholders' equity | 705.8 | 778.7 |
Total liabilities and shareholders' equity | $ 1,788.9 | $ 1,809.5 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2016 | Jul. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 6.5 | $ 6.7 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 5 | $ 5 |
Common stock, shares authorized | 240,000,000 | 240,000,000 |
Common stock, shares issued | 151,643,194 | 151,643,194 |
Treasury stock, shares | 18,712,985 | 17,044,950 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Operating Activities | ||
Net earnings | $ 76,500 | $ 103,900 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 36,600 | 37,400 |
Changes in operating assets and liabilities, excluding effect of acquisition | (16,100) | (69,400) |
Tax benefit of equity plans | (1,800) | (5,400) |
Stock compensation plan expense | 5,300 | 7,700 |
Deferred taxes | (1,300) | (2,300) |
Other, net | 10,100 | 13,500 |
Net cash provided by operating activities | 109,300 | 85,400 |
Investing Activities | ||
Net expenditures on property, plant, and equipment | (42,800) | (51,000) |
Proceeds from sale of short-term investments | 18,000 | 87,500 |
Acquisitions, net of cash acquired | (12,900) | (96,600) |
Net cash used in investing activities | (37,700) | (60,100) |
Financing Activities | ||
Purchase of treasury stock | (68,000) | (174,200) |
Repayments of long-term debt | (700) | (1,300) |
Change in short-term borrowings | 73,100 | 137,200 |
Dividends paid | (45,200) | (45,700) |
Tax benefit of equity plans | 1,800 | 5,400 |
Exercise of stock options | 5,000 | 8,100 |
Net cash used in financing activities | (34,000) | (70,500) |
Effect of exchange rate changes on cash | (5,400) | (22,200) |
Increase (decrease) in cash and cash equivalents | 32,200 | (67,400) |
Cash and cash equivalents, beginning of year | 189,900 | 296,400 |
Cash and cash equivalents, end of period | $ 222,100 | $ 229,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Donaldson Company, Inc. and its subsidiaries (the Company) have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) 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 presentation have been included and are of a normal recurring nature. Operating results for the three and six month periods ended January 31, 2016 , are not necessarily indicative of the results that may be expected for future periods. The year-end condensed balance sheet data was derived from the Company's audited financial statements but does not include all disclosures required by U.S. 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 year ended July 31, 2015 . Revision of Previously Reported Interim Financial Statements During the second and third quarters of Fiscal 2015 , revenue for certain transactions was accelerated and therefore inappropriately recognized in our European Gas Turbine Systems business through the alteration of documents by certain individuals with the intention to recognize revenue in periods earlier than would be allowable under U.S. GAAP. The Company assessed the impact of this inappropriately accelerated recognition and has chosen to correct these misstatements by revising previously issued Fiscal 2015 second and third quarter financial statements. The impact of these misstatements is included in the Fiscal 2015 amounts in the accompanying condensed consolidated financial statements, including applicable footnotes, and is summarized as follows (millions of dollars except per share amounts): Three Months Ended Six Months Ended As Previously Reported Effect of Revision As Revised As Previously Reported Effect of Revision As Revised Net sales $ 596.9 $ (8.4 ) $ 588.5 $ 1,193.4 $ (8.4 ) $ 1,185.0 Cost of sales 391.4 (6.0 ) 385.4 778.8 (6.0 ) 772.8 Gross profit 205.5 (2.4 ) 203.1 414.6 (2.4 ) 412.2 Operating income 68.2 (2.4 ) 65.8 145.2 (2.4 ) 142.8 Earnings before income taxes 67.8 (2.4 ) 65.4 145.1 (2.4 ) 142.7 Income taxes 18.2 (0.8 ) 17.4 39.6 (0.8 ) 38.8 Net earnings $ 49.6 $ (1.6 ) $ 48.0 $ 105.5 $ (1.6 ) $ 103.9 Basic earnings per share 0.36 (0.01 ) 0.35 0.76 (0.01 ) 0.75 Diluted earnings per share 0.35 (0.01 ) 0.34 0.75 (0.01 ) 0.74 Comprehensive income 3.4 (1.6 ) 1.8 22.4 (1.6 ) 20.8 New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) , which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with Customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to Customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with Customers. Additionally, qualitative and quantitative disclosures are required about Customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2019 using one of two prescribed retrospective methods. Early adoption is permitted. The Company is evaluating the impact that ASU 2014-09 will have on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12), which amended guidance related to share-based payments where terms of the award provide that a performance target could be achieved after the requisite service period. This guidance is effective for the Company beginning in the first quarter of Fiscal 2018. The Company is evaluating the impact that ASU 2014-12 will have on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which amended guidance requiring the issuance of debt costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the amount of the debt liability, consistent with debt discounts and premiums. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2017. Early adoption is permitted. The Company is evaluating the impact that ASU 2015-03 will have on the Company’s consolidated financial statements. In May 2015, FASB issued ASU 2015-07, Fair Value Measurement (Topic 850): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (ASU 2015-07), which amended guidance requiring a company to categorize investments for which fair values are measured using the net asset value (NAV) per share practical expedient. ASU 2015-07 also limits the disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2017. Early adoption is permitted. The Company does not expect the application of ASU 2015-07 to have a significant impact on its results of operations or financial position. The Company expects ASU 2015-07 only to affect the Company's disclosures. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11), which amended the guidance requiring companies not using the last-in, first-out (LIFO) method to measure inventory at the lower of cost and net realizable value rather than the lower of cost or market. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2017. Early adoption is permitted. The Company does not expect the application of ASU 2015-11 to have a significant impact on its results of operations or financial position. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which amended the guidance requiring companies to separate deferred income tax liabilities and assets into current and non-current amounts in a classified statement of financial position. This accounting guidance simplifies the presentation of deferred income taxes, such that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2018. The Company is evaluating the impact that ASU 2015-17 will have on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02), which amended the guidance requiring companies to recognize assets and liabilities for leases with lease terms of more than twelve months. The new guidance will require companies to record both capital and operating leases on the balance sheet. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2019. The Company is evaluating the impact that ASU 2016-02 will have on the Company's consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Jan. 31, 2016 | |
Inventory, Net [Abstract] | |
Inventories | Inventories The components of inventory as of January 31, 2016 and July 31, 2015 , are as follows (millions of dollars): January 31, July 31, Raw materials $ 104.4 $ 113.4 Work in process 26.7 22.6 Finished products 143.7 129.0 Total inventories $ 274.8 $ 265.0 |
Accounting for Stock-Based Comp
Accounting for Stock-Based Compensation | 6 Months Ended |
Jan. 31, 2016 | |
Share-based Compensation [Abstract] | |
Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation Stock-based compensation expense is recognized using the fair-value method for all awards. The Company determines the fair value of its option awards using the Black-Scholes option pricing model. Options granted are priced at the fair market value of the Company's stock on the date of grant. There were 941,350 of stock options awarded during the six months ended January 31, 2016 . The weighted average fair value for options granted during the six months ended January 31, 2016 and 2015 was $7.08 and $9.95 per share, respectively. For the three and six months ended January 31, 2016 , the Company recorded pre-tax stock-based compensation expense associated with stock options of $3.3 million and $4.4 million , respectively, and recorded $1.1 million and $1.4 million , respectively, of related tax benefits. For the three and six months ended January 31, 2015 , the Company recorded pre-tax stock-based compensation expense associated with stock options of $5.6 million and $6.9 million , respectively, and recorded $1.9 million and $2.3 million , respectively, of related tax benefits. The following table summarizes stock option activity during the six months ended January 31, 2016 : Options Outstanding Weighted Average Exercise Price Outstanding at July 31, 2015 7,191,442 $ 29.38 Granted 941,350 $ 28.07 Exercised (361,571 ) $ 17.35 Canceled (153,525 ) $ 37.82 Outstanding at January 31, 2016 7,617,696 $ 29.62 The total intrinsic value of options exercised during the six months ended January 31, 2016 and 2015 was $4.5 million and $13.4 million , respectively. The following table summarizes information concerning outstanding and exercisable options as of January 31, 2016 : Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price of Outstanding Options Number Exercisable Weighted Average Exercise Price of Exercisable Options $ 0.00 to $17.69 1,034,947 1.91 $ 17.24 1,034,947 $ 17.24 $17.70 to $23.69 1,420,040 3.02 $ 21.47 1,420,040 $ 21.47 $23.70 to $29.69 1,740,118 7.56 $ 28.55 801,768 $ 29.12 $29.70 to $35.69 1,662,818 6.20 $ 34.22 1,658,051 $ 34.22 $35.70 and above 1,759,773 8.30 $ 40.20 859,292 $ 40.81 7,617,696 5.82 $ 29.62 5,774,098 $ 28.31 At January 31, 2016 , the aggregate intrinsic value of options outstanding and exercisable was $21.0 million and $20.9 million , respectively. As of January 31, 2016 , there was $9.2 million of total unrecognized compensation expense related to non-vested stock options granted under the 2010 Master Stock Incentive Plan. This unvested expense is expected to be recognized during Fiscal Years 2016 , 2017 , 2018 and 2019 . |
Net Earnings Per Share
Net Earnings Per Share | 6 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Earnings Per Share | Net Earnings Per Share The Company’s basic net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares. The Company’s diluted net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options and stock incentive plans. Certain outstanding options were excluded from the diluted net earnings per share calculations because their exercise prices were greater than the average market price of the Company’s common stock during those periods. For the three and six months ended January 31, 2016 , there were 4,219,359 and 3,422,591 , respectively, options excluded from diluted net earnings per share calculation. For the three and six months ended January 31, 2015 , there were 874,222 options excluded from the diluted net earnings per share calculation. The following table presents information necessary to calculate basic and diluted net earnings per common share (millions of dollars except per share amounts): Three Months Ended Six Months Ended 2016 2015 2016 2015 Weighted average shares - basic 133.7 138.0 133.8 138.8 Common share equivalents 0.7 1.7 0.9 1.8 Weighted average shares - diluted 134.4 139.7 134.7 140.6 Net earnings for basic and diluted earnings per share computation $ 38.0 $ 48.0 $ 76.5 $ 103.9 Net earnings per share - basic $ 0.28 $ 0.35 $ 0.57 $ 0.75 Net earnings per share - diluted $ 0.28 $ 0.34 $ 0.57 $ 0.74 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The Company’s Board of Directors authorized the repurchase of up to 14.0 million shares of common stock on May 29, 2015. During the three months ended January 31, 2016 , there were no share repurchases. During the six months ended January 31, 2016 , the Company repurchased 2,070,000 shares for $68.0 million at an average price of $32.85 per share. As of January 31, 2016 , the Company had remaining authorization to repurchase up to 10.9 million shares. On January 28, 2016, the Company's Board of Directors declared a cash dividend in the amount of 17.0 cents per common share, payable to stockholders of record on February 16, 2016. The dividend was paid on March 2, 2016. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jan. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component are as follows (millions of dollars): Foreign currency translation adjustment (a) Pension benefits Derivative financial instruments Total Balance as of July 31, 2015, net of tax $ (70.8 ) $ (90.6 ) $ (0.6 ) $ (162.0 ) Other comprehensive (loss) income before reclassifications and tax (29.4 ) (38.8 ) (0.4 ) (68.6 ) Tax benefit (expense) — 14.1 0.1 14.2 Other comprehensive (loss) income before reclassifications, net of tax (29.4 ) (24.7 ) (0.3 ) (54.4 ) Reclassifications, before tax — 10.8 (0.5 ) 10.3 Tax benefit (expense) — (3.4 ) 0.1 (3.3 ) Reclassifications, net of tax — 7.4 (b) (0.4 ) (c) 7.0 Other comprehensive (loss) income, net of tax (29.4 ) (17.3 ) (0.7 ) (47.4 ) Balance at January 31, 2016, net of tax $ (100.2 ) $ (107.9 ) $ (1.3 ) $ (209.4 ) Balance as of July 31, 2014, net of tax $ 48.3 $ (94.0 ) $ (0.1 ) $ (45.8 ) Other comprehensive (loss) income before reclassifications and tax (96.5 ) 11.8 2.0 (82.7 ) Tax benefit (expense) — (2.5 ) (0.7 ) (3.2 ) Other comprehensive (loss) income before reclassifications, net of tax (96.5 ) 9.3 1.3 (85.9 ) Reclassifications, before tax — 4.8 (0.1 ) 4.7 Tax benefit (expense) — (1.9 ) — (1.9 ) Reclassifications, net of tax — 2.9 (b) (0.1 ) (c) 2.8 Other comprehensive (loss) income, net of tax (96.5 ) 12.2 1.2 (83.1 ) Balance at January 31, 2015, net of tax $ (48.2 ) $ (81.8 ) $ 1.1 $ (128.9 ) (a) Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. (b) Primarily includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note K) that were reclassified from accumulated other comprehensive loss to operating expenses or cost of sales. (c) Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jan. 31, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting | Segment Reporting The Company has identified two reportable segments: Engine Products and Industrial Products. Segment selection was based on the internal organization structure, management of operations, and performance evaluation by management and the Company’s Board of Directors. Corporate and Unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest income and interest expense. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the operating profit and other financial information shown below. Segment detail is summarized as follows (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net Sales Engine Product segment $ 320.9 $ 357.1 $ 667.5 $ 747.8 Industrial Product segment 196.3 231.4 387.7 437.2 Total $ 517.2 $ 588.5 $ 1,055.2 $ 1,185.0 Earnings Before Income Taxes Engine Product segment $ 27.4 $ 41.5 $ 63.4 $ 94.6 Industrial Product segment 27.7 35.1 51.7 62.7 Corporate and Unallocated (5.7 ) (11.2 ) (12.3 ) (14.6 ) Total $ 49.4 $ 65.4 $ 102.8 $ 142.7 There were no Customers that accounted for over 10 percent of net sales for the three and six months ended January 31, 2016 and 2015 . There were no Customers that accounted for over 10 percent of gross accounts receivable as of January 31, 2016 and 2015 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is assessed for impairment annually, or more frequently if events or changes in circumstances indicate that the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of Fiscal 2015 . The results of this assessment showed that the estimated fair values of the reporting units to which goodwill is assigned continued to exceed the corresponding carrying values of the respective reporting units resulting in no goodwill impairment. During the second quarter of Fiscal 2016 , the Company revised its forecast associated with its Gas Turbine Systems reporting unit. While the previous forecast for this reporting unit called for a year-over-year decline in sales, the Company continued to face deferrals and softening demand for large-turbine projects. Given the challenges facing this business, the Company revisited its strategic focus. The Company's priorities for the Gas Turbine Systems business will shift slightly. The Company will continue to focus on innovative products while growing the aftermarket business. The strategic shift is the Company will be more selective in taking on large-turbine projects. This strategic shift resulted in the revised forecast associated with its Gas Turbine Systems reporting unit. As a result of the strategic shift and revised forecast actions taken in the second quarter of Fiscal 2016, the Company concluded that an interim goodwill triggering event had occurred for the Gas Turbine Systems reporting unit. Goodwill associated with the Gas Turbine Systems reporting unit is $60.2 million as of January 31, 2016 , and is included in the Industrial Products segment. The Company completed its goodwill impairment assessment using a discounted cash flow model based on management's judgments and assumptions to determine the estimated fair value of the reporting unit. Based on the results of this assessment the Company concluded the estimated fair value of the Gas Turbine Systems reporting unit exceeded the respective carrying amount of the reporting unit by approximately 13.6 percent . Therefore, the second step of the impairment test was not necessary for this reporting unit. In determining the estimated fair value of the reporting unit, the Company used the income approach, a valuation technique using an estimate of future cash flows from the reporting unit's financial forecast. A terminal growth rate of 3.0 percent and a discount rate of 12.0 percent were used reflecting the relative risk of achieving cash flows as well as any other specific risks or factors related to the Gas Turbine Systems reporting unit. The Company believes the assumptions used in its discounted cash flow analysis are appropriate and result in a reasonable estimate of the reporting unit's fair value. The Company performed a sensitivity analysis to determine how the assumptions made would impact the results of the impairment test. Holding all other assumptions constant, an unfavorable change in projected cash flows of 25.0 percent or more would potentially result in an indication of impairment. Additionally, a decrease in the residual growth rate of 4.5 percentage points or more or an increase in the discount rate of 1.2 percentage points or more would potentially result in an indication of impairment. While the current projections support no impairment of this reporting unit as of January 31, 2016 , given that our second quarter 2016 results fell below expectations and the sensitivities to the assumptions used in the calculations of the estimated cash flows, it is possible that an impairment could be incurred in the future. The Company will continue to monitor results and expected cash flows in the future to assess whether goodwill impairment in our Gas Turbine Systems reporting unit may be necessary. Following is a reconciliation of goodwill for the six months ended January 31, 2016 (millions of dollars): Engine Products Industrial Products Total Goodwill Balance as of July 31, 2015 $ 71.0 $ 152.7 $ 223.7 Goodwill acquired 6.3 (0.3 ) 6.0 Foreign exchange translation — (1.2 ) (1.2 ) Balance as of January 31, 2016 $ 77.3 $ 151.2 $ 228.5 As of January 31, 2016 and July 31, 2015 , other intangible assets were $41.7 million and $37.9 million , respectively. Intangible assets increased during the year due to the acquisition of Engineered Products Company (EPC) intangibles of $7.0 million , offset by amortization of existing assets of $3.0 million , and a $1.1 million foreign exchange translation decrease. Refer to Note N for further discussion of the EPC acquisition. |
Guarantees
Guarantees | 6 Months Ended |
Jan. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | Guarantees The Company and Caterpillar Inc. equally own the shares of Advanced Filtration Systems Inc. (AFSI), an unconsolidated joint venture, and guarantee certain debt of the joint venture. As of January 31, 2016 , AFSI had $20.3 million of outstanding debt, of which the Company guarantees half. The Company recorded a $0.1 million loss and $0.6 million of earnings from this equity method investment during the three months ended January 31, 2016 and 2015 , respectively. The Company recorded a $1.2 million loss and $1.5 million of earnings from this equity method investment during the six months ended January 31, 2016 and 2015 , respectively. During the three months ended January 31, 2016 and 2015 , the Company recorded royalty income of $0.8 million and $1.5 million , respectively, related to AFSI. During the six months ended January 31, 2016 and 2015 , the Company recorded royalty income of $2.6 million and $3.1 million , respectively, related to AFSI. As of January 31, 2016 , the Company had a contingent liability for standby letters of credit totaling $7.8 million that have been issued and are outstanding. The letters of credit guarantee payment to third parties in the event the Company is in breach of insurance contract terms as detailed in each letter of credit. At January 31, 2016 , there were no amounts drawn upon these letters of credit. |
Warranty
Warranty | 6 Months Ended |
Jan. 31, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty | Warranty The Company estimates warranty expense using quantitative measures based on historical warranty claim experience and evaluation of specific Customer warranty issues. Following is a reconciliation of warranty reserves for the six months ended January 31, 2016 and 2015 (millions of dollars): Six Months Ended 2016 2015 Beginning balance $ 8.6 $ 9.0 Accruals for warranties issued during the reporting period 2.6 1.6 Accruals related to pre-existing warranties (including changes in estimates) 2.7 (0.2 ) Less settlements made during the period (1.7 ) (2.0 ) Ending balance $ 12.2 $ 8.4 While the current Fiscal year period included increased warranty costs, there were no individually material specific warranty matters accrued for in the six months ended January 31, 2016 or 2015 . The Company’s warranty matters are not expected to have a material impact on its results of operations, liquidity or financial position. |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jan. 31, 2016 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company and certain of its international subsidiaries have defined benefit pension plans for many of their hourly and salaried employees. There are two types of U.S. plans. The first type of U.S. plan is a traditional defined benefit pension plan primarily for production employees. The second is a plan for salaried workers that provides defined benefits pursuant to a cash balance feature whereby a participant accumulates a benefit comprised of a percentage of current salary that varies with years of service, interest credits and transition credits. The international plans generally provide pension benefits based on years of service and compensation level. Net periodic pension costs for the Company’s pension plans include the following components (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net periodic cost: Service cost $ 4.5 $ 5.1 $ 9.1 $ 10.3 Interest cost 4.8 4.9 9.5 9.7 Expected return on assets (7.2 ) (7.5 ) (14.5 ) (14.9 ) Prior service cost and transition amortization 0.1 0.1 0.3 0.3 Settlement cost — 3.9 — 3.9 Actuarial loss amortization 2.1 1.9 4.3 3.7 Net periodic benefit cost $ 4.3 $ 8.4 $ 8.7 $ 13.0 The Company’s general funding policy for its pension plans is to make at least the minimum contributions as required by applicable regulations. Additionally, the Company may elect to make additional contributions up to the maximum tax deductible contribution. For the six months ended January 31, 2016 , the Company made contributions of $1.7 million to its non-U.S. pension plans and $0.6 million to its U.S. pension plans. The minimum funding requirement for the Company’s U.S. plans for Fiscal 2016 is $10.8 million . Per the Pension Protection Act of 2006, this obligation can be met with existing credit balances that resulted from payments above the minimum obligation in prior years. The Company plans to utilize existing credit balances to meet the minimum obligation for Fiscal 2016. The Company currently estimates that it will contribute an additional $2.2 million to its non-U.S. pension plans during the remainder of Fiscal 2016 . In July 2013, the Company adopted a sunset freeze on its U.S. salaried pension plan. Effective August 1, 2013, there are no longer any new entrants into the plan. Effective August 1, 2016, employees hired prior to August 1, 2013, will no longer continue to accrue Company contribution credits under the plan. Additionally, in July 2013, the Company announced that employees hired on or after August 1, 2013, will also be eligible for a 3.0 percent annual Company retirement contribution in addition to the Company’s 401(k) match. Effective August 1, 2016, employees hired prior to August 1, 2013, will be eligible for the 3.0 percent annual Company retirement contribution. In the first quarter of Fiscal 2015 , the Company offered lump sum payments to certain participants of its U.S. pension plans. During the three months ended January 31, 2015, the Company made cash distributions to all participants that accepted these settlement offers, which qualified as a partial settlement of these plans. The Company recorded $3.9 million of expense in the second quarter of Fiscal 2015 associated with the partial settlement. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jan. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company records provisions with respect to identified claims or lawsuits when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Claims and lawsuits are reviewed quarterly and provisions are taken or adjusted to reflect the status of a particular matter. The Company believes the recorded reserves in its condensed consolidated financial statements are adequate in light of the probable and estimable outcomes. The recorded liabilities were not material to the Company’s financial position, results of operations, or liquidity, and the Company does not believe that any of the currently identified claims or litigation will materially affect its financial position, results of operations or liquidity. |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three and six months ended January 31, 2016 , was 23.0 percent and 25.6 percent, respectively, compared to 26.7 percent and 27.2 percent for the three and six months ended January 31, 2015 . The decrease in the Company’s effective tax rate for the three months ended January 31, 2016 , was primarily due to a reduction in the Company's base tax rate, which was driven by a favorable shift in mix of earnings between tax jurisdictions, the retroactive aspects of the Protecting Americans From Tax Hikes Act of 2015, a non- recurring tax benefit associated with foreign dividend distributions, and an increase in the ratio of total discrete item benefits to pretax book income versus the prior year. The decrease in the Company's effective tax rate for the six months ended January 31, 2016 , was primarily due to a favorable shift in the mix of earnings between tax jurisdictions and an increase in the ratio of total discrete item benefits to pretax book income versus the prior year. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before 2008. The United States Internal Revenue Service has completed examinations of the Company’s U.S. federal income tax returns through 2012. At January 31, 2016 , the total unrecognized tax benefits were $19.5 million and accrued interest and penalties on these unrecognized tax benefits were $2.1 million . The Company recognizes accrued interest related to unrecognized tax benefits in income tax expense. If the Company were to prevail on all unrecognized tax benefits recorded, substantially all of the unrecognized tax benefits would benefit the effective tax rate. With an average statute of limitations of about 5 years, up to $1.1 million of the unrecognized tax benefits could potentially expire in the next 12 month period unless extended by an audit. It is possible that quicker than expected settlement of either current audits, future audits or disputes would cause additional reversals of previously recorded reserves in the next 12 month period. Quantification of an estimated range and timing of future audit settlements cannot be made at this time. |
Acquisitions
Acquisitions | 6 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On August 31, 2015, the Company announced that it had acquired 100 percent of the shares of Engineered Products Company, a leading designer and manufacturer of indicators, gauges, switches and sensors for engine air and liquid filtration systems. Founded in 1977, Engineered Products generates annual sales of approximately $9.0 million through its Filter Minder® brand. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges 2016 Actions In the first quarter of Fiscal 2016, the Company took actions to further align its operating and manufacturing cost structure with current and projected Customer and end-market demand. These actions consisted of one-time termination benefits from restructuring the salaried and production workforce in all geographic regions and in both reportable segments. Total charges related to this action were expected to be $7.2 million . These actions have been completed and resulted in a total pre-tax charge of $6.2 million with $5.8 million recorded during the first quarter of Fiscal 2016 and $0.4 million recorded during the second quarter of Fiscal 2016. The Engine Products segment incurred $0.4 million of restructuring charges during the three months ended January 31, 2016 . For the six months ended January 31, 2016 , restructuring charges of $3.8 million and $2.4 million were incurred in the Engine Products and Industrial Products segments, respectively. As the charges were incurred and paid in the same period there was no liability balance as of either October 31, 2015 or January 31, 2016. 2015 Actions In the second quarter of Fiscal 2015, the Company took actions to align its operating and manufacturing cost structure with current and projected Customer and end-market demand. These actions consisted of one-time termination benefits, project management fees, warehousing costs, moving expenses, and supplies and equipment related to the closing of the Company's Grinnell, Iowa facility. Total charges related to this action were expected to be $5.8 million . This action was completed in the second quarter of Fiscal 2016. Total charges related to this action since the second quarter of Fiscal 2015 were $5.8 million and have been recorded in the Engine Products segment. Restructuring charges are summarized in the table below (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 2016 Actions $ 0.4 $ — $ 6.2 $ — 2015 Actions 0.6 0.7 2.3 0.7 Total $ 1.0 $ 0.7 $ 8.5 $ 0.7 Restructuring charges are summarized in the table below by statement of earnings line item (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of sales $ 0.9 $ 0.7 $ 4.1 $ 0.7 Operating expenses 0.1 — 4.4 — Total $ 1.0 $ 0.7 $ 8.5 $ 0.7 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jan. 31, 2016 | |
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 principles in the United States (U.S. GAAP) 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 presentation have been included and are of a normal recurring nature. Operating results for the three and six month periods ended January 31, 2016 , are not necessarily indicative of the results that may be expected for future periods. The year-end condensed balance sheet data was derived from the Company's audited financial statements but does not include all disclosures required by U.S. 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 year ended July 31, 2015 . |
New Accounting Standards Not Yet Adopted | New Accounting Standards Not Yet Adopted In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09) , which amended revenue recognition guidance to clarify the principles for recognizing revenue from contracts with Customers. The guidance requires an entity to recognize revenue to depict the transfer of goods or services to Customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. The guidance also requires expanded disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with Customers. Additionally, qualitative and quantitative disclosures are required about Customer contracts, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2019 using one of two prescribed retrospective methods. Early adoption is permitted. The Company is evaluating the impact that ASU 2014-09 will have on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could be Achieved after the Requisite Service Period (ASU 2014-12), which amended guidance related to share-based payments where terms of the award provide that a performance target could be achieved after the requisite service period. This guidance is effective for the Company beginning in the first quarter of Fiscal 2018. The Company is evaluating the impact that ASU 2014-12 will have on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which amended guidance requiring the issuance of debt costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the amount of the debt liability, consistent with debt discounts and premiums. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2017. Early adoption is permitted. The Company is evaluating the impact that ASU 2015-03 will have on the Company’s consolidated financial statements. In May 2015, FASB issued ASU 2015-07, Fair Value Measurement (Topic 850): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (ASU 2015-07), which amended guidance requiring a company to categorize investments for which fair values are measured using the net asset value (NAV) per share practical expedient. ASU 2015-07 also limits the disclosures to investments for which the entity has elected to measure the fair value using the practical expedient. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2017. Early adoption is permitted. The Company does not expect the application of ASU 2015-07 to have a significant impact on its results of operations or financial position. The Company expects ASU 2015-07 only to affect the Company's disclosures. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory (ASU 2015-11), which amended the guidance requiring companies not using the last-in, first-out (LIFO) method to measure inventory at the lower of cost and net realizable value rather than the lower of cost or market. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2017. Early adoption is permitted. The Company does not expect the application of ASU 2015-11 to have a significant impact on its results of operations or financial position. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which amended the guidance requiring companies to separate deferred income tax liabilities and assets into current and non-current amounts in a classified statement of financial position. This accounting guidance simplifies the presentation of deferred income taxes, such that deferred tax liabilities and assets be classified as non-current in a classified statement of financial position. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2018. The Company is evaluating the impact that ASU 2015-17 will have on the Company's consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02), which amended the guidance requiring companies to recognize assets and liabilities for leases with lease terms of more than twelve months. The new guidance will require companies to record both capital and operating leases on the balance sheet. This accounting guidance is effective for the Company beginning in the first quarter of Fiscal 2019. The Company is evaluating the impact that ASU 2016-02 will have on the Company's consolidated financial statements. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Quantifying Prior Year Misstatements Corrected in Current Year Financial Statements | The impact of these misstatements is included in the Fiscal 2015 amounts in the accompanying condensed consolidated financial statements, including applicable footnotes, and is summarized as follows (millions of dollars except per share amounts): Three Months Ended Six Months Ended As Previously Reported Effect of Revision As Revised As Previously Reported Effect of Revision As Revised Net sales $ 596.9 $ (8.4 ) $ 588.5 $ 1,193.4 $ (8.4 ) $ 1,185.0 Cost of sales 391.4 (6.0 ) 385.4 778.8 (6.0 ) 772.8 Gross profit 205.5 (2.4 ) 203.1 414.6 (2.4 ) 412.2 Operating income 68.2 (2.4 ) 65.8 145.2 (2.4 ) 142.8 Earnings before income taxes 67.8 (2.4 ) 65.4 145.1 (2.4 ) 142.7 Income taxes 18.2 (0.8 ) 17.4 39.6 (0.8 ) 38.8 Net earnings $ 49.6 $ (1.6 ) $ 48.0 $ 105.5 $ (1.6 ) $ 103.9 Basic earnings per share 0.36 (0.01 ) 0.35 0.76 (0.01 ) 0.75 Diluted earnings per share 0.35 (0.01 ) 0.34 0.75 (0.01 ) 0.74 Comprehensive income 3.4 (1.6 ) 1.8 22.4 (1.6 ) 20.8 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Inventory, Net [Abstract] | |
Components Of Inventory | The components of inventory as of January 31, 2016 and July 31, 2015 , are as follows (millions of dollars): January 31, July 31, Raw materials $ 104.4 $ 113.4 Work in process 26.7 22.6 Finished products 143.7 129.0 Total inventories $ 274.8 $ 265.0 |
Accounting for Stock-Based Co26
Accounting for Stock-Based Compensation (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Share-based Compensation [Abstract] | |
Summary Of Stock Option Activity | The following table summarizes stock option activity during the six months ended January 31, 2016 : Options Outstanding Weighted Average Exercise Price Outstanding at July 31, 2015 7,191,442 $ 29.38 Granted 941,350 $ 28.07 Exercised (361,571 ) $ 17.35 Canceled (153,525 ) $ 37.82 Outstanding at January 31, 2016 7,617,696 $ 29.62 |
Summary Of Information Concerning Outstanding And Exercisable Options | The following table summarizes information concerning outstanding and exercisable options as of January 31, 2016 : Range of Exercise Prices Number Outstanding Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price of Outstanding Options Number Exercisable Weighted Average Exercise Price of Exercisable Options $ 0.00 to $17.69 1,034,947 1.91 $ 17.24 1,034,947 $ 17.24 $17.70 to $23.69 1,420,040 3.02 $ 21.47 1,420,040 $ 21.47 $23.70 to $29.69 1,740,118 7.56 $ 28.55 801,768 $ 29.12 $29.70 to $35.69 1,662,818 6.20 $ 34.22 1,658,051 $ 34.22 $35.70 and above 1,759,773 8.30 $ 40.20 859,292 $ 40.81 7,617,696 5.82 $ 29.62 5,774,098 $ 28.31 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule Of Information Necessary To Calculate Basic And Diluted Net Earnings Per Common Share | The following table presents information necessary to calculate basic and diluted net earnings per common share (millions of dollars except per share amounts): Three Months Ended Six Months Ended 2016 2015 2016 2015 Weighted average shares - basic 133.7 138.0 133.8 138.8 Common share equivalents 0.7 1.7 0.9 1.8 Weighted average shares - diluted 134.4 139.7 134.7 140.6 Net earnings for basic and diluted earnings per share computation $ 38.0 $ 48.0 $ 76.5 $ 103.9 Net earnings per share - basic $ 0.28 $ 0.35 $ 0.57 $ 0.75 Net earnings per share - diluted $ 0.28 $ 0.34 $ 0.57 $ 0.74 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Changes In Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss by component are as follows (millions of dollars): Foreign currency translation adjustment (a) Pension benefits Derivative financial instruments Total Balance as of July 31, 2015, net of tax $ (70.8 ) $ (90.6 ) $ (0.6 ) $ (162.0 ) Other comprehensive (loss) income before reclassifications and tax (29.4 ) (38.8 ) (0.4 ) (68.6 ) Tax benefit (expense) — 14.1 0.1 14.2 Other comprehensive (loss) income before reclassifications, net of tax (29.4 ) (24.7 ) (0.3 ) (54.4 ) Reclassifications, before tax — 10.8 (0.5 ) 10.3 Tax benefit (expense) — (3.4 ) 0.1 (3.3 ) Reclassifications, net of tax — 7.4 (b) (0.4 ) (c) 7.0 Other comprehensive (loss) income, net of tax (29.4 ) (17.3 ) (0.7 ) (47.4 ) Balance at January 31, 2016, net of tax $ (100.2 ) $ (107.9 ) $ (1.3 ) $ (209.4 ) Balance as of July 31, 2014, net of tax $ 48.3 $ (94.0 ) $ (0.1 ) $ (45.8 ) Other comprehensive (loss) income before reclassifications and tax (96.5 ) 11.8 2.0 (82.7 ) Tax benefit (expense) — (2.5 ) (0.7 ) (3.2 ) Other comprehensive (loss) income before reclassifications, net of tax (96.5 ) 9.3 1.3 (85.9 ) Reclassifications, before tax — 4.8 (0.1 ) 4.7 Tax benefit (expense) — (1.9 ) — (1.9 ) Reclassifications, net of tax — 2.9 (b) (0.1 ) (c) 2.8 Other comprehensive (loss) income, net of tax (96.5 ) 12.2 1.2 (83.1 ) Balance at January 31, 2015, net of tax $ (48.2 ) $ (81.8 ) $ 1.1 $ (128.9 ) (a) Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. (b) Primarily includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note K) that were reclassified from accumulated other comprehensive loss to operating expenses or cost of sales. (c) Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Summary Of Segment Detail | Segment detail is summarized as follows (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net Sales Engine Product segment $ 320.9 $ 357.1 $ 667.5 $ 747.8 Industrial Product segment 196.3 231.4 387.7 437.2 Total $ 517.2 $ 588.5 $ 1,055.2 $ 1,185.0 Earnings Before Income Taxes Engine Product segment $ 27.4 $ 41.5 $ 63.4 $ 94.6 Industrial Product segment 27.7 35.1 51.7 62.7 Corporate and Unallocated (5.7 ) (11.2 ) (12.3 ) (14.6 ) Total $ 49.4 $ 65.4 $ 102.8 $ 142.7 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Reconciliation Of Goodwill | Following is a reconciliation of goodwill for the six months ended January 31, 2016 (millions of dollars): Engine Products Industrial Products Total Goodwill Balance as of July 31, 2015 $ 71.0 $ 152.7 $ 223.7 Goodwill acquired 6.3 (0.3 ) 6.0 Foreign exchange translation — (1.2 ) (1.2 ) Balance as of January 31, 2016 $ 77.3 $ 151.2 $ 228.5 |
Warranty (Tables)
Warranty (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Reconciliation Of Warranty Reserves | Following is a reconciliation of warranty reserves for the six months ended January 31, 2016 and 2015 (millions of dollars): Six Months Ended 2016 2015 Beginning balance $ 8.6 $ 9.0 Accruals for warranties issued during the reporting period 2.6 1.6 Accruals related to pre-existing warranties (including changes in estimates) 2.7 (0.2 ) Less settlements made during the period (1.7 ) (2.0 ) Ending balance $ 12.2 $ 8.4 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Components Of Net Periodic Pension Costs | Net periodic pension costs for the Company’s pension plans include the following components (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 Net periodic cost: Service cost $ 4.5 $ 5.1 $ 9.1 $ 10.3 Interest cost 4.8 4.9 9.5 9.7 Expected return on assets (7.2 ) (7.5 ) (14.5 ) (14.9 ) Prior service cost and transition amortization 0.1 0.1 0.3 0.3 Settlement cost — 3.9 — 3.9 Actuarial loss amortization 2.1 1.9 4.3 3.7 Net periodic benefit cost $ 4.3 $ 8.4 $ 8.7 $ 13.0 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jan. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring charges are summarized in the table below (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 2016 Actions $ 0.4 $ — $ 6.2 $ — 2015 Actions 0.6 0.7 2.3 0.7 Total $ 1.0 $ 0.7 $ 8.5 $ 0.7 Restructuring charges are summarized in the table below by statement of earnings line item (millions of dollars): Three Months Ended Six Months Ended 2016 2015 2016 2015 Cost of sales $ 0.9 $ 0.7 $ 4.1 $ 0.7 Operating expenses 0.1 — 4.4 — Total $ 1.0 $ 0.7 $ 8.5 $ 0.7 |
Prior Year Misstatement Correct
Prior Year Misstatement Correction in the Current Year (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales | $ 517,200 | $ 588,500 | $ 1,055,200 | $ 1,185,000 |
Cost of sales | 346,400 | 385,400 | 706,300 | 772,800 |
Gross profit | 170,800 | 203,100 | 348,900 | 412,200 |
Operating income | 53,700 | 65,800 | 109,200 | 142,800 |
Earnings before income taxes | 49,400 | 65,400 | 102,800 | 142,700 |
Income taxes | 11,400 | 17,400 | 26,300 | 38,800 |
Net earnings | $ 38,000 | $ 48,000 | $ 76,500 | $ 103,900 |
Basic earnings per share (in usd per share) | $ 0.28 | $ 0.35 | $ 0.57 | $ 0.75 |
Diluted earnings per share (in usd per share) | $ 0.28 | $ 0.34 | $ 0.57 | $ 0.74 |
Comprehensive income | $ 2,800 | $ 1,800 | $ 29,100 | $ 20,800 |
Accelerated Revenue Recognition | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales | 588,500 | 1,185,000 | ||
Cost of sales | 385,400 | 772,800 | ||
Gross profit | 203,100 | 412,200 | ||
Operating income | 65,800 | 142,800 | ||
Earnings before income taxes | 65,400 | 142,700 | ||
Income taxes | 17,400 | 38,800 | ||
Net earnings | $ 48,000 | $ 103,900 | ||
Basic earnings per share (in usd per share) | $ 0.35 | $ 0.75 | ||
Diluted earnings per share (in usd per share) | $ 0.34 | $ 0.74 | ||
Comprehensive income | $ 1,800 | $ 20,800 | ||
Accelerated Revenue Recognition | Scenario, Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales | 596,900 | 1,193,400 | ||
Cost of sales | 391,400 | 778,800 | ||
Gross profit | 205,500 | 414,600 | ||
Operating income | 68,200 | 145,200 | ||
Earnings before income taxes | 67,800 | 145,100 | ||
Income taxes | 18,200 | 39,600 | ||
Net earnings | $ 49,600 | $ 105,500 | ||
Basic earnings per share (in usd per share) | $ 0.36 | $ 0.76 | ||
Diluted earnings per share (in usd per share) | $ 0.35 | $ 0.75 | ||
Comprehensive income | $ 3,400 | $ 22,400 | ||
Accelerated Revenue Recognition | Restatement Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Net sales | (8,400) | (8,400) | ||
Cost of sales | (6,000) | (6,000) | ||
Gross profit | (2,400) | (2,400) | ||
Operating income | (2,400) | (2,400) | ||
Earnings before income taxes | (2,400) | (2,400) | ||
Income taxes | (800) | (800) | ||
Net earnings | $ (1,600) | $ (1,600) | ||
Basic earnings per share (in usd per share) | $ (0.01) | $ (0.01) | ||
Diluted earnings per share (in usd per share) | $ (0.01) | $ (0.01) | ||
Comprehensive income | $ (1,600) | $ (1,600) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Jul. 31, 2015 |
Inventory, Net [Abstract] | ||
Raw materials | $ 104.4 | $ 113.4 |
Work in process | 26.7 | 22.6 |
Finished products | 143.7 | 129 |
Total inventories | $ 274.8 | $ 265 |
Accounting for Stock-Based Co36
Accounting for Stock-Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options awarded | 941,350 | |||
Weighted average fair value for options granted, per share (in usd per share) | $ 7.08 | $ 9.95 | ||
Pre-tax stock-based compensation expense associated with stock options | $ 3.3 | $ 5.6 | $ 4.4 | $ 6.9 |
Tax benefit associated with stock options | 1.1 | $ 1.9 | 1.4 | 2.3 |
Total intrinsic value of options exercised | 4.5 | $ 13.4 | ||
Aggregate intrinsic value of options outstanding | 21 | 21 | ||
Aggregate intrinsic value of options exercisable | 20.9 | 20.9 | ||
2010 Master Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense related to non-vested stock options granted | $ 9.2 | $ 9.2 |
Accounting for Stock-Based Co37
Accounting for Stock-Based Compensation (Summary Of Stock Option Activity) (Details) | 6 Months Ended |
Jan. 31, 2016$ / sharesshares | |
Options Outstanding | |
Options Outstanding, Beginning Balance (in shares) | shares | 7,191,442 |
Options Outstanding, Granted (in shares) | shares | 941,350 |
Options Outstanding, Exercised (in shares) | shares | (361,571) |
Options Outstanding, Canceled (in shares) | shares | (153,525) |
Options Outstanding, Ending Balance (in shares) | shares | 7,617,696 |
Weighted Average Exercise Price | |
Weighted Average Exercise Price, Beginning Balance (in usd per share) | $ / shares | $ 29.38 |
Weighted Average Exercise Price, Granted (in usd per share) | $ / shares | 28.07 |
Weighted Average Exercise Price, Exercised (in usd per share) | $ / shares | 17.35 |
Weighted Average Exercise Price, Canceled (in usd per share) | $ / shares | 37.82 |
Weighted Average Exercise Price, Ending Balance (in usd per share) | $ / shares | $ 29.62 |
Accounting for Stock-Based Co38
Accounting for Stock-Based Compensation (Summary Of Information Concerning Outstanding And Exercisable Options) (Details) - $ / shares | 6 Months Ended | |
Jan. 31, 2016 | Jul. 31, 2015 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Number Outstanding (in shares) | 7,617,696 | 7,191,442 |
Weighted Average Remaining Contractual Life (Years) | 5 years 9 months 26 days | |
Weighted Average Exercise Price of Outstanding Options (in usd per share) | $ 29.62 | |
Number Exercisable (in shares) | 5,774,098 | |
Weighted Average Exercise Price of Exercisable Options(in usd per share) | $ 28.31 | |
Range Of Exercise Prices $0.00 To $17.69 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower range (in usd per share) | 0 | |
Range of Exercise Prices, upper range (in usd per share) | $ 17.69 | |
Number Outstanding (in shares) | 1,034,947 | |
Weighted Average Remaining Contractual Life (Years) | 1 year 10 months 28 days | |
Weighted Average Exercise Price of Outstanding Options (in usd per share) | $ 17.24 | |
Number Exercisable (in shares) | 1,034,947 | |
Weighted Average Exercise Price of Exercisable Options(in usd per share) | $ 17.24 | |
Range Of Exercise Prices $17.70 To $23.69 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower range (in usd per share) | 17.70 | |
Range of Exercise Prices, upper range (in usd per share) | $ 23.69 | |
Number Outstanding (in shares) | 1,420,040 | |
Weighted Average Remaining Contractual Life (Years) | 3 years 7 days | |
Weighted Average Exercise Price of Outstanding Options (in usd per share) | $ 21.47 | |
Number Exercisable (in shares) | 1,420,040 | |
Weighted Average Exercise Price of Exercisable Options(in usd per share) | $ 21.47 | |
Range Of Exercise Prices $23.70 To $29.69 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower range (in usd per share) | 23.70 | |
Range of Exercise Prices, upper range (in usd per share) | $ 29.69 | |
Number Outstanding (in shares) | 1,740,118 | |
Weighted Average Remaining Contractual Life (Years) | 7 years 6 months 22 days | |
Weighted Average Exercise Price of Outstanding Options (in usd per share) | $ 28.55 | |
Number Exercisable (in shares) | 801,768 | |
Weighted Average Exercise Price of Exercisable Options(in usd per share) | $ 29.12 | |
Range Of Exercise Prices $29.70 To $35.69 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower range (in usd per share) | 29.70 | |
Range of Exercise Prices, upper range (in usd per share) | $ 35.69 | |
Number Outstanding (in shares) | 1,662,818 | |
Weighted Average Remaining Contractual Life (Years) | 6 years 2 months 12 days | |
Weighted Average Exercise Price of Outstanding Options (in usd per share) | $ 34.22 | |
Number Exercisable (in shares) | 1,658,051 | |
Weighted Average Exercise Price of Exercisable Options(in usd per share) | $ 34.22 | |
Range Of Exercise Prices $35.70 And Above | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Range of Exercise Prices, lower range (in usd per share) | $ 35.70 | |
Number Outstanding (in shares) | 1,759,773 | |
Weighted Average Remaining Contractual Life (Years) | 8 years 3 months 18 days | |
Weighted Average Exercise Price of Outstanding Options (in usd per share) | $ 40.20 | |
Number Exercisable (in shares) | 859,292 | |
Weighted Average Exercise Price of Exercisable Options(in usd per share) | $ 40.81 |
Net Earnings Per Share (Narrati
Net Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Options excluded from the diluted net earnings per share calculation | 4,219,359 | 874,222 | 3,422,591 | 874,222 |
Net Earnings Per Share (Schedul
Net Earnings Per Share (Schedule Of Information Necessary To Calculate Basic And Diluted Net Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares - basic (in shares) | 133.7 | 138 | 133.8 | 138.8 |
Common share equivalents (in shares) | 0.7 | 1.7 | 0.9 | 1.8 |
Weighted average shares - diluted (in shares) | 134.4 | 139.7 | 134.7 | 140.6 |
Net earnings for basic and diluted earnings per share computation | $ 38,000 | $ 48,000 | $ 76,500 | $ 103,900 |
Net earnings per share - basic (in usd per share) | $ 0.28 | $ 0.35 | $ 0.57 | $ 0.75 |
Net earnings per share - diluted (in usd per share) | $ 0.28 | $ 0.34 | $ 0.57 | $ 0.74 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 28, 2016 | Jan. 31, 2016 | Jan. 31, 2016 | May. 29, 2015 |
Stockholders' Equity Note [Abstract] | ||||
Number of shares authorized to be repurchased | 14,000,000 | |||
Stock repurchased during the period (in shares) | 0 | 2,070,000 | ||
Stock repurchased during the period, value | $ 68 | |||
Average price per share (in usd per share) | $ 32.85 | |||
Shares with remaining authorization for repurchase under stock repurchase plan (in shares) | 10,900,000 | 10,900,000 | ||
Cash dividend declared per common share (in usd per share) | $ 0.170 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance, net of tax | $ (162) | $ (45.8) | |
Other comprehensive (loss) income before reclassifications and tax | (68.6) | (82.7) | |
Tax benefit (expense) | 14.2 | (3.2) | |
Other comprehensive (loss) income before reclassifications, net of tax | (54.4) | (85.9) | |
Ending Balance, net of tax | (209.4) | ||
Reclassification Out Of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Tax benefit (expense) | (3.3) | (1.9) | |
Reclassifications, before tax | 10.3 | 4.7 | |
Reclassifications, net of tax | 7 | 2.8 | |
Other comprehensive (loss) income, net of tax | (47.4) | (83.1) | |
Ending Balance, net of tax | (209.4) | (128.9) | |
Foreign currency translation adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance, net of tax | [1] | (70.8) | 48.3 |
Other comprehensive (loss) income before reclassifications and tax | [1] | (29.4) | (96.5) |
Tax benefit (expense) | [1] | 0 | 0 |
Other comprehensive (loss) income before reclassifications, net of tax | [1] | (29.4) | (96.5) |
Foreign currency translation adjustment | Reclassification Out Of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Tax benefit (expense) | [1] | 0 | 0 |
Reclassifications, before tax | [1] | 0 | 0 |
Reclassifications, net of tax | [1] | 0 | 0 |
Other comprehensive (loss) income, net of tax | [1] | (29.4) | (96.5) |
Ending Balance, net of tax | [1] | (100.2) | (48.2) |
Pension benefits | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance, net of tax | (90.6) | (94) | |
Other comprehensive (loss) income before reclassifications and tax | (38.8) | 11.8 | |
Tax benefit (expense) | 14.1 | (2.5) | |
Other comprehensive (loss) income before reclassifications, net of tax | (24.7) | 9.3 | |
Pension benefits | Reclassification Out Of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Tax benefit (expense) | (3.4) | (1.9) | |
Reclassifications, before tax | 10.8 | 4.8 | |
Reclassifications, net of tax | [2] | 7.4 | 2.9 |
Other comprehensive (loss) income, net of tax | (17.3) | 12.2 | |
Ending Balance, net of tax | (107.9) | (81.8) | |
Derivative financial instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance, net of tax | (0.6) | (0.1) | |
Other comprehensive (loss) income before reclassifications and tax | (0.4) | 2 | |
Tax benefit (expense) | 0.1 | (0.7) | |
Other comprehensive (loss) income before reclassifications, net of tax | (0.3) | 1.3 | |
Derivative financial instruments | Reclassification Out Of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Tax benefit (expense) | 0.1 | 0 | |
Reclassifications, before tax | (0.5) | (0.1) | |
Reclassifications, net of tax | [3] | (0.4) | (0.1) |
Other comprehensive (loss) income, net of tax | (0.7) | 1.2 | |
Ending Balance, net of tax | $ (1.3) | $ 1.1 | |
[1] | Taxes are not provided on cumulative translation adjustments as substantially all translation adjustments relate to earnings that are intended to be indefinitely reinvested outside the U.S. | ||
[2] | Primarily includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note K) that were reclassified from accumulated other comprehensive loss to operating expenses or cost of sales. | ||
[3] | Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net. |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 6 Months Ended |
Jan. 31, 2016segment | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting (Summary Of S
Segment Reporting (Summary Of Segment Detail) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 517.2 | $ 588.5 | $ 1,055.2 | $ 1,185 |
Earnings Before Income Taxes | 49.4 | 65.4 | 102.8 | 142.7 |
Operating Segments | Engine Product segment | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 320.9 | 357.1 | 667.5 | 747.8 |
Earnings Before Income Taxes | 27.4 | 41.5 | 63.4 | 94.6 |
Operating Segments | Industrial Product segment | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 196.3 | 231.4 | 387.7 | 437.2 |
Earnings Before Income Taxes | 27.7 | 35.1 | 51.7 | 62.7 |
Corporate, Non-Segment | Corporate and Unallocated | ||||
Segment Reporting Information [Line Items] | ||||
Earnings Before Income Taxes | $ (5.7) | $ (11.2) | $ (12.3) | $ (14.6) |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Apr. 30, 2015 | Jan. 31, 2016 | Jul. 31, 2015 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill impairment | $ 0 | ||
Goodwill | $ 228,500,000 | $ 223,700,000 | |
Long-term revenue growth rate | 3.00% | ||
Discount rate | 12.00% | ||
Intangible assets, net | $ 41,700,000 | $ 37,900,000 | |
Amortization of existing intangible assets | 3,000,000 | ||
Foreign exchange translation decrease of intangible assets | $ 1,100,000 | ||
Goodwill, Impairment Test, Benchmark Projected Cash Flow Decrease That Would Result in Potential Impairment, Percent | 25.00% | ||
Goodwill, Impairment Test, Benchmark Residual Growth Rate Decrease That Would Result in Potential Impairment, Percent | 4.50% | ||
Goodwill, Impairment Test, Benchmark Discount Rate Increase That Would Result in Potential Impairment, Percent | 1.20% | ||
Northern Technical | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Amount of intangibles acquired | $ 7,000,000 | ||
Industrial Product segment | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Goodwill | $ 60,200,000 | ||
Percentage of fair value in excess of carrying amount | 14.00% |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets (Reconciliation Of Goodwill) (Details) $ in Millions | 6 Months Ended |
Jan. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Balance as of July 31, 2015 | $ 223.7 |
Goodwill acquired | 6 |
Foreign exchange translation | (1.2) |
Balance as of January 31, 2016 | 228.5 |
Industrial Product segment | |
Goodwill [Roll Forward] | |
Balance as of January 31, 2016 | 60.2 |
Operating Segments | Engine Products | |
Goodwill [Roll Forward] | |
Balance as of July 31, 2015 | 71 |
Goodwill acquired | 6.3 |
Foreign exchange translation | 0 |
Balance as of January 31, 2016 | 77.3 |
Operating Segments | Industrial Product segment | |
Goodwill [Roll Forward] | |
Balance as of July 31, 2015 | 152.7 |
Goodwill acquired | (0.3) |
Foreign exchange translation | (1.2) |
Balance as of January 31, 2016 | $ 151.2 |
Guarantees (Details)
Guarantees (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Guarantor Obligations [Line Items] | ||||
Contingent liability for standby letters of credit, issued and outstanding | $ 7,800,000 | $ 7,800,000 | ||
Amount drawn upon letters of credit | 0 | 0 | ||
Advanced Filtration Systems, Inc. | ||||
Guarantor Obligations [Line Items] | ||||
Outstanding debt of joint venture | 20,300,000 | 20,300,000 | ||
Joint venture investment earnings (loss) | 100,000 | $ (600,000) | 1,200,000 | $ (1,500,000) |
Royalty income | $ 800,000 | $ 1,500,000 | $ 2,600,000 | $ 3,100,000 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Beginning balance | $ 8.6 | $ 9 |
Accruals for warranties issued during the reporting period | 2.6 | 1.6 |
Accruals related to pre-existing warranties (including changes in estimates) | 2.7 | (0.2) |
Less settlements made during the period | (1.7) | (2) |
Ending balance | $ 12.2 | $ 8.4 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 27 Months Ended | ||
Jul. 31, 2013 | Jan. 31, 2016USD ($) | Jan. 31, 2015USD ($) | Jan. 31, 2016USD ($)plan | Jan. 31, 2015USD ($) | Oct. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of U.S. plans | plan | 2 | |||||
Annual Company retirement contribution in addition to 401 (k) match, percent | 3.00% | 3.00% | ||||
Pension Expense | $ 0 | $ 3,900 | $ 0 | $ 3,900 | ||
U.S. Pension Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Company contributions | 600 | |||||
Estimated future contributions to pension plans | 10,800 | |||||
Pension Expense | $ 3,900 | |||||
Non-U.S. Pension Plans | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Company contributions | 1,700 | |||||
Additional future contribution towards pension plans for the remainder of Fiscal 2015 | $ 2,200 |
Employee Benefit Plans (Compone
Employee Benefit Plans (Components Of Net Periodic Pension Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ||||
Service cost | $ 4,500 | $ 5,100 | $ 9,100 | $ 10,300 |
Interest cost | 4,800 | 4,900 | 9,500 | 9,700 |
Expected return on assets | (7,200) | (7,500) | (14,500) | (14,900) |
Prior service cost and transition amortization | 100 | 100 | 300 | 300 |
Settlement cost | 0 | 3,900 | 0 | 3,900 |
Actuarial loss amortization | 2,100 | 1,900 | 4,300 | 3,700 |
Net periodic benefit cost | $ 4,300 | $ 8,400 | $ 8,700 | $ 13,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 23.00% | 26.70% | 25.60% | 27.20% |
Unrecognized tax benefits | $ 19,500,000 | $ 19,500,000 | ||
Accrued interest and penalties on unrecognized tax benefits | $ 2,100,000 | $ 2,100,000 | ||
Statute of limitations period, average, years | 5 years | |||
Maximum possible reduction in amount of unrecognized tax benefits | $ 1,100,000 | |||
Unrecognized tax benefits potential expiration period | 12 months |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Aug. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Net sales | $ 517.2 | $ 588.5 | $ 1,055.2 | $ 1,185 | |
Engine Products | |||||
Business Acquisition [Line Items] | |||||
Percentage of voting interest acquired | 100.00% | ||||
Net sales | $ 9 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 15 Months Ended | |||
Jan. 31, 2016 | Oct. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 1,000,000 | $ 700,000 | $ 8,500,000 | $ 700,000 | ||
Restructuring reserve | 0 | 0 | $ 0 | |||
2016 Actions | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 400,000 | 0 | 6,200,000 | 0 | ||
2016 Actions | Engine Product segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring reserve | $ 0 | |||||
2015 Actions | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | 600,000 | 700,000 | 2,300,000 | 700,000 | ||
2015 Actions | Engine Product segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring costs | $ 5,800,000 | $ 5,800,000 | ||||
Restructuring charges | $ 5,800,000 | |||||
One-time Termination Benefits | 2016 Actions | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring costs | 7,200,000 | |||||
Restructuring charges | 400,000 | $ 5,800,000 | 6,200,000 | |||
One-time Termination Benefits | 2016 Actions | Engine Product segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 400,000 | 3,800,000 | ||||
One-time Termination Benefits | 2016 Actions | Industrial Product segment | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges | $ 2,400,000 |
Schedule of Restructuring Charg
Schedule of Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1 | $ 0.7 | $ 8.5 | $ 0.7 |
2016 Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.4 | 0 | 6.2 | 0 |
2015 Actions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.6 | 0.7 | 2.3 | 0.7 |
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.9 | 0.7 | 4.1 | 0.7 |
Operating Expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0.1 | $ 0 | $ 4.4 | $ 0 |