Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Dec. 31, 2013 | Jan. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MODINE MANUFACTURING CO | ' |
Entity Central Index Key | '0000067347 | ' |
Current Fiscal Year End Date | '--03-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 47,577,331 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Dec-13 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | ' | ' | ' | ' |
Net sales | $347 | $326.10 | $1,087 | $1,016.40 |
Cost of sales | 290.2 | 277.9 | 911.1 | 863.9 |
Gross profit | 56.8 | 48.2 | 175.9 | 152.5 |
Selling, general and administrative expenses | 44.5 | 42.3 | 132.9 | 126.8 |
Restructuring expenses | 9.4 | 1.4 | 10.5 | 7.3 |
Impairment charges | 2 | 8.3 | 2 | 25.1 |
Operating income (loss) | 0.9 | -3.8 | 30.5 | -6.7 |
Interest expense | -3.2 | -2.8 | -9.4 | -9.2 |
Other expense - net | -0.3 | -0.3 | -0.8 | 0 |
Earnings (loss) before income taxes | -2.6 | -6.9 | 20.3 | -15.9 |
Provision for income taxes | -0.8 | -1.5 | -8.1 | -5.3 |
Net earnings (loss) | -3.4 | -8.4 | 12.2 | -21.2 |
Net earnings attributable to noncontrolling interest | -0.2 | -0.3 | -1.2 | -0.9 |
Net earnings (loss) attributable to Modine | ($3.60) | ($8.70) | $11 | ($22.10) |
Net earnings (loss) per share attributable to Modine shareholders: | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.08) | ($0.19) | $0.23 | ($0.47) |
Diluted (in dollars per share) | ($0.08) | ($0.19) | $0.23 | ($0.47) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic (in shares) | 46.9 | 46.7 | 46.8 | 46.6 |
Diluted (in shares) | 46.9 | 46.7 | 47.5 | 46.6 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ' | ' | ' | ' |
Net earnings (loss) | ($3.40) | ($8.40) | $12.20 | ($21.20) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation | 0.9 | 3.7 | 6.8 | -10.2 |
Defined benefit plans | 1.3 | 0.8 | 3.8 | 2.6 |
Cash flow hedges | 0.1 | 0.7 | 0.3 | 2.4 |
Total other comprehensive income (loss) | 2.3 | 5.2 | 10.9 | -5.2 |
Comprehensive income (loss) | -1.1 | -3.2 | 23.1 | -26.4 |
Comprehensive income attributable to noncontrolling interest | -0.2 | -0.3 | -1.2 | -0.9 |
Comprehensive income (loss) attributable to Modine | ($1.30) | ($3.50) | $21.90 | ($27.30) |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $86.30 | $23.80 |
Trade accounts receivable - net | 177.4 | 194.5 |
Inventories | 118.9 | 118.8 |
Other current assets | 81.9 | 61.9 |
Total current assets | 464.5 | 399 |
Property, plant and equipment - net | 352.8 | 355.9 |
Investment in affiliate | 3.5 | 3.3 |
Intangible assets - net | 7.9 | 8.3 |
Goodwill | 28.2 | 28.7 |
Other noncurrent assets | 32.6 | 23.6 |
Total assets | 889.5 | 818.8 |
Liabilities: | ' | ' |
Short-term debt | 35.9 | 30.6 |
Long-term debt - current portion | 1 | 0.5 |
Accounts payable | 133.5 | 150.7 |
Accrued compensation and employee benefits | 65.1 | 51.2 |
Other current liabilities | 91.1 | 47.1 |
Total current liabilities | 326.6 | 280.1 |
Long-term debt | 131.4 | 132.5 |
Deferred income taxes | 6.6 | 8.6 |
Pensions | 101.6 | 108 |
Postretirement benefits | 6.5 | 6.7 |
Other noncurrent liabilities | 22.3 | 14.6 |
Total liabilities | 595 | 550.5 |
Commitments and contingencies (see Note 17) | ' | ' |
Shareholders' equity: | ' | ' |
Preferred stock, $0.025 par value, authorized 16.0 million shares, issued - none | 0 | 0 |
Common stock, $0.625 par value, authorized 80.0 million shares, issued 48.2 million and 47.8 million shares | 30.2 | 29.9 |
Additional paid-in capital | 174.8 | 171.2 |
Retained earnings | 218.6 | 207.6 |
Accumulated other comprehensive loss | -117.5 | -128.4 |
Treasury stock, at cost, 0.7 million and 0.6 million shares | -15.2 | -14.6 |
Total Modine shareholders' equity | 290.9 | 265.7 |
Noncontrolling interest | 3.6 | 2.6 |
Total equity | 294.5 | 268.3 |
Total liabilities and equity | $889.50 | $818.80 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Shareholders' equity: | ' | ' |
Preferred stock, par value (in dollars per share) | $0.03 | $0.03 |
Preferred stock, shares authorized (in shares) | 16 | 16 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.63 | $0.63 |
Common stock, shares authorized (in shares) | 80 | 80 |
Common stock, shares issued (in shares) | 48.2 | 47.8 |
Treasury stock at cost (in shares) | 0.7 | 0.6 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net earnings (loss) | $12.20 | ($21.20) |
Adjustments to reconcile net earnings (loss) with net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 45 | 41.8 |
Insurance proceeds from Airedale fire | 16.9 | 0 |
Impairment charges | 2 | 25.1 |
Other - net | 4.2 | 9.2 |
Net changes in operating assets and liabilities | 6.4 | -13.5 |
Net cash provided by operating activities | 86.7 | 41.4 |
Cash flows from investing activities: | ' | ' |
Expenditures for property, plant and equipment | -36 | -33.6 |
Insurance proceeds from Airedale fire | 7.4 | 0 |
Costs to replace equipment damaged in Airedale fire | -2.2 | 0 |
Acquisition - net of cash acquired | 0 | -4.9 |
Other - net | 3 | -1.3 |
Net cash used for investing activities | -27.8 | -39.8 |
Cash flows from financing activities: | ' | ' |
Borrowings of debt | 128 | 69.7 |
Repayments of debt | -124.6 | -69.4 |
Financing fees paid | -0.9 | 0 |
Dividend paid to noncontrolling interest | -0.5 | 0 |
Other - net | -0.6 | -0.2 |
Net cash provided by financing activities | 1.4 | 0.1 |
Effect of exchange rate changes on cash | 2.2 | -0.2 |
Net increase in cash and cash equivalents | 62.5 | 1.5 |
Cash and cash equivalents at beginning of period | 23.8 | 31.4 |
Cash and cash equivalents at end of period | $86.30 | $32.90 |
General
General | 9 Months Ended |
Dec. 31, 2013 | |
General [Abstract] | ' |
General | ' |
Note 1: General | |
The accompanying condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States applied on a basis consistent with those principles used in the preparation of the annual consolidated financial statements of Modine Manufacturing Company (“Modine” or “the Company”) for the fiscal year ended March 31, 2013. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results for the interim periods. Results for the first nine months of fiscal 2014 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes in Modine's Annual Report on Form 10-K for the year ended March 31, 2013. | |
Out of period adjustments: During the second quarter of fiscal 2014, the Company recorded a customer pricing adjustment which related to prior fiscal years. The impact of this error to the second quarter of fiscal 2014 decreased pre-tax earnings by $0.6 million ($0.5 million after-tax). During the first quarter of fiscal 2013, the Company identified an error related to certain commodity hedges that should have been deemed ineffective in the fourth quarter of fiscal 2012, which overstated pre-tax earnings by $0.5 million in the first quarter of fiscal 2013. The Company does not believe that the impact of these errors is material to its financial statements for any prior periods, to the three or nine months ended December 31, 2013, or its projected full year financial results for fiscal 2014. | |
New accounting pronouncement: In February 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update that requires entities to present reclassifications by component when reporting changes in accumulated other comprehensive income. In addition, the Company is required to present, either on the face of the statement where net income is presented or in the notes, certain significant amounts reclassified out of accumulated other comprehensive income within the respective line items of the consolidated statement of operations. The Company adopted this guidance in the first quarter of fiscal 2014. See Note 18 for additional information. |
Airedale_Facility_Fire
Airedale Facility Fire | 9 Months Ended |
Dec. 31, 2013 | |
Airedale Facility Fire [Abstract] | ' |
Airedale Facility Fire | ' |
Note 2: Airedale Facility Fire | |
On September 6, 2013, a fire caused significant destruction to the Company’s Airedale manufacturing facility and offices in Rawdon (Leeds), United Kingdom. Airedale’s financial results are reported within the Company’s Commercial Products segment. There were no injuries caused by the fire. The Rawdon facility, which was leased, was used to manufacture cooling products and solutions for a variety of applications, including data centers, clean rooms, retail, leisure and process cooling. The fire caused the Company to temporarily suspend manufacturing and certain administrative operations at the Rawdon site; however, the Company is currently planning for the reconstruction of the facility and has transferred its operations to temporary facilities. | |
The Company maintains insurance coverage for damage to the leased facility, equipment, inventory, other assets, business interruption and lost profits, and recovery-related expenses caused by the fire. The Company believes that reimbursement from its insurance provider is probable for substantially all losses and costs directly attributable to the fire. In the second quarter of fiscal 2014, the Company recorded expenses of $0.5 million, primarily related to the write-off of certain assets (leasehold improvements) that were not covered by insurance. Since the date of the fire, the Company has received cash advances of $24.3 million from its insurance provider for covered losses, written-off inventory of $4.7 million and equipment with a net book value of $1.4 million, and incurred costs directly attributable to the fire totaling $8.2 million. These losses and costs, which totaled $14.3 million, were recorded in the same statement of operations line item as the related insurance recovery. | |
The terms of the Rawdon lease agreement obligate the Company to rebuild the damaged facility. The Company has estimated the cost of reconstruction to be approximately $50.0 million and, during the second quarter of fiscal 2014, recorded a liability of $50.0 million and a related receivable from the insurance provider for the same amount. During the third quarter of fiscal 2014, the Company received $10.0 million of cash advances in excess of recovery costs and losses incurred to date, which reduced the related insurance receivable to $40.0 million. As of December 31, 2013, the liability to rebuild the facility was $50.0 million ($41.0 million within other current liabilities and $9.0 million within other noncurrent liabilities) and the receivable from the Company’s insurance provider was $40.0 million ($31.0 million within other current assets and $9.0 million within other noncurrent assets). The Company expects to record insurance reimbursements related to lost profits (business interruption) during the recovery period in the quarter during which the reimbursements are realized. The Company expects that a portion of insurance reimbursements for lost profits related to fiscal 2014 will not be realized until fiscal 2015. |
Acquisitions
Acquisitions | 9 Months Ended |
Dec. 31, 2013 | |
Acquisitions [Abstract] | ' |
Acquisitions | ' |
Note 3: Acquisitions | |
On July 25, 2012, the Company completed the acquisition of Geofinity Manufacturing of Surrey, British Columbia for cash consideration of $4.9 million, net of cash acquired. This acquisition, which is included in the Commercial Products segment, provided Modine with a product line of innovative geothermal heat pumps in both water-to-water and water-to-air models. Acquired assets and liabilities assumed were recorded at their respective fair values. The purchase price allocation resulted in acquired technology of $3.5 million, working capital net assets of $0.6 million, and goodwill of $0.8 million. Acquired technology consisted of a fully developed product line, technical processes, and intellectual property, and is being amortized over ten years. | |
During fiscal 2007, the Company acquired the remaining 50 percent of Radiadores Visconde Ltda. The purchase agreement included a $2.0 million note, which was payable subject to the resolution of certain obligations of the sellers. During the second quarter of fiscal 2013, the Company and the sellers reached a final resolution under which the Company is not obligated to pay the note to the sellers. As a result, the Company recorded a $2.0 million reduction to selling, general and administrative (“SG&A”) expenses in the South America segment during the second quarter of fiscal 2013. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Note 4: Fair Value Measurements | |||||||||||||||||
Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Fair value measurements are classified under the following hierarchy: | |||||||||||||||||
· | Level 1 – Quoted prices for identical instruments in active markets. | ||||||||||||||||
· | Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. | ||||||||||||||||
· | Level 3 – Model-derived valuations in which one or more significant inputs are not observable. | ||||||||||||||||
When available, the Company uses quoted market prices to determine fair value and classifies such measurements within Level 1. In some cases, where market prices are not available, the Company uses observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon valuation models that use, where possible, market-based parameters such as interest rates, yield curves or currency rates. These measurements are classified within Level 3. | |||||||||||||||||
Trading securities: Trading securities held by the Company, which are included within other noncurrent assets, are investments maintained in a deferred compensation trust to fund obligations under Modine’s non-qualified deferred compensation plan. The securities’ fair values are determined based on quoted prices from active markets and are classified within Level 1 of the valuation hierarchy. | |||||||||||||||||
Derivative financial instruments: As part of the Company’s risk management strategy, Modine enters into derivative transactions to mitigate certain identified exposures. The derivative instruments include foreign currency exchange contracts and commodity derivatives. These instruments are not exchange traded and are customized over-the-counter derivative transactions. These derivative instruments are with counterparties that have long-term credit ratings of BBB– or better. The Company measures fair value assuming that the unit of account is an individual derivative transaction and those derivatives are sold or transferred on a stand-alone basis. The Company estimates the fair value of these derivative instruments based on dealer quotes. These derivative instruments are classified within Level 2 of the valuation hierarchy. | |||||||||||||||||
Deferred compensation obligations: The fair values of the Company’s deferred compensation obligations are recorded at the fair value of the investments held by the deferred compensation trust. As described above, the fair values of the related trading securities are determined based on quoted prices from active markets and are classified within Level 1 of the valuation hierarchy. | |||||||||||||||||
The carrying values of cash and cash equivalents, trade accounts receivable, and accounts payable approximate fair value due to the short-term nature of these instruments. The fair value of the Company’s debt is disclosed in Note 15. | |||||||||||||||||
At December 31, 2013, assets and liabilities recorded at fair value on a recurring basis were as follows: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Trading securities | $ | 2.6 | $ | - | $ | - | $ | 2.6 | |||||||||
Derivative financial instruments | - | 0.1 | - | 0.1 | |||||||||||||
Total assets | $ | 2.6 | $ | 0.1 | $ | - | $ | 2.7 | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | $ | - | $ | 0.3 | $ | - | $ | 0.3 | |||||||||
Deferred compensation obligations | 2.6 | - | - | 2.6 | |||||||||||||
Total liabilities | $ | 2.6 | $ | 0.3 | $ | - | $ | 2.9 | |||||||||
At March 31, 2013, assets and liabilities recorded at fair value on a recurring basis were as follows: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Trading securities | $ | 2.3 | $ | - | $ | - | $ | 2.3 | |||||||||
Total assets | $ | 2.3 | $ | - | $ | - | $ | 2.3 | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | $ | - | $ | 1.4 | $ | - | $ | 1.4 | |||||||||
Deferred compensation obligations | 2.3 | - | - | 2.3 | |||||||||||||
Total liabilities | $ | 2.3 | $ | 1.4 | $ | - | $ | 3.7 |
Pension_and_Postretirement_Ben
Pension and Postretirement Benefits | 9 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Pension and Postretirement Benefits [Abstract] | ' | ||||||||||||||||||||||||||||||||
Pension and Postretirement Benefits | ' | ||||||||||||||||||||||||||||||||
Note 5: Pension and Postretirement Benefits | |||||||||||||||||||||||||||||||||
During each of the three months ended December 31, 2013 and 2012, the Company contributed $2.8 million to its U.S. pension plans. During the nine months ended December 31, 2013 and 2012, the Company contributed $6.2 million and $7.6 million, respectively, to its U.S. pension plans. Costs for Modine's pension and postretirement benefit plans included the following components: | |||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
Pension | Postretirement | Pension | Postretirement | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.1 | $ | - | $ | - | $ | 0.5 | $ | 0.5 | $ | - | $ | - | |||||||||||||||||
Interest cost | 3.2 | 3.4 | 0.1 | 0.1 | 9.7 | 10.1 | 0.2 | 0.2 | |||||||||||||||||||||||||
Expected return on plan assets | (3.9 | ) | (4.0 | ) | - | - | (11.8 | ) | (12.1 | ) | - | - | |||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Unrecognized net loss | 1.6 | 1.2 | - | - | 4.7 | 3.7 | - | - | |||||||||||||||||||||||||
Unrecognized prior service credit | - | - | (0.3 | ) | (0.4 | ) | - | - | (0.9 | ) | (1.1 | ) | |||||||||||||||||||||
Net periodic benefit cost (income) | $ | 1.1 | $ | 0.7 | $ | (0.2 | ) | $ | (0.3 | ) | $ | 3.1 | $ | 2.2 | $ | (0.7 | ) | $ | (0.9 | ) |
StockBased_Compensation
Stock-Based Compensation | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 6: Stock-Based Compensation | |||||||||||||||||
The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive compensation program for officers and key executives that consists of stock option and restricted stock components granted for retention and performance, (2) a discretionary equity program for management and other key employees, and (3) stock options and/or stock awards for non-employee directors. | |||||||||||||||||
Compensation cost is calculated based on the fair value of the instrument at the time of grant, and is recognized as expense over the vesting period of the stock-based award. Modine recognized stock-based compensation cost of $1.5 million and $1.4 million for the three-month periods ended December 31, 2013 and 2012, respectively. Modine recognized stock-based compensation cost of $3.1 million and $3.0 million for the nine-month periods ended December 31, 2013 and 2012, respectively. The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2014 is based on a target three-year average consolidated return on average capital employed, three-year average revenue growth, and Asia segment operating income at the end of the three-year performance period. | |||||||||||||||||
The fair market value of stock-based compensation awards granted during the nine months ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Nine months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Shares | Per Award | Shares | Per Award | ||||||||||||||
Stock options | 0.2 | $ | 7.76 | 0.2 | $ | 4.26 | |||||||||||
Restricted stock - retention | 0.3 | 10.4 | 0.4 | 5.8 | |||||||||||||
Restricted stock - performance based | 0.2 | 10.4 | 0.4 | 5.75 | |||||||||||||
Unrestricted stock | 0.1 | 14.53 | 0.1 | 7.14 | |||||||||||||
The following assumptions were used in determining the fair value for stock options: | |||||||||||||||||
Nine months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected life of awards in years | 6.3 | 6.3 | |||||||||||||||
Risk-free interest rate | 1.3 | % | 0.9 | % | |||||||||||||
Expected volatility of the Company's stock | 88.7 | % | 87.4 | % | |||||||||||||
Expected dividend yield on the Company's stock | 0 | % | 0 | % | |||||||||||||
As of December 31, 2013, the total remaining unrecognized compensation cost related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows: | |||||||||||||||||
Unrecognized | Weighted Average Remaining Service | ||||||||||||||||
Compensation | Period in Years | ||||||||||||||||
Cost | |||||||||||||||||
Stock options | $ | 1.5 | 2.7 | ||||||||||||||
Restricted stock - retention | 4.3 | 2.9 | |||||||||||||||
Restricted stock - performance based | 2.3 | 2.1 | |||||||||||||||
Total | $ | 8.1 | 2.6 |
Restructuring_and_Impairment_C
Restructuring and Impairment Charges | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restructuring and Impairment Charges [Abstract] | ' | ||||||||||||||||
Restructuring and Impairment Charges | ' | ||||||||||||||||
Note 7: Restructuring and Impairment Charges | |||||||||||||||||
During fiscal 2013, the Company announced its intention to restructure its Europe segment. The Company’s restructuring actions and plans have included exiting certain non-core product lines based on its global product strategy, reducing manufacturing costs, implementing headcount reductions, and disposing of and selling certain underperforming or non-strategic assets. The restructuring activities are designed to align the cost structure of the segment with the segment’s strategic focus on the commercial vehicle, off-highway, and engine product markets, while improving gross margin and return on average capital employed. | |||||||||||||||||
Since commencement of the Europe segment restructuring program, the Company has recorded $26.1 million of asset impairment charges, $24.7 million of employee severance costs, primarily related to headcount reductions at two manufacturing facilities and the segment headquarters, and $7.1 million of repositioning expenses, primarily related to accelerated depreciation of production equipment that is no longer used because of manufacturing process changes and equipment transfer costs. | |||||||||||||||||
Restructuring and repositioning expenses related to the Europe segment restructuring program were as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Employee severance and related benefits | $ | 9 | $ | 1 | $ | 9.8 | $ | 6.6 | |||||||||
Accelerated depreciation | - | - | 4.3 | - | |||||||||||||
Other repositioning costs | 0.4 | 0.4 | 0.7 | 0.7 | |||||||||||||
Total restructuring and repositioning expenses | $ | 9.4 | $ | 1.4 | $ | 14.8 | $ | 7.3 | |||||||||
For the three and nine months ended December 31, 2013, $9.4 million and $10.5 million, respectively, of restructuring and repositioning costs were recorded as restructuring expenses in the consolidated statement of operations. For the nine months ended December 31, 2013, $4.3 million of restructuring and repositioning costs were recorded within cost of sales. For the three and nine months ended December 31, 2012, all restructuring and other repositioning costs were recorded in the consolidated statement of operations as restructuring expenses. | |||||||||||||||||
The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance related to the Europe segment restructuring program were as follows: | |||||||||||||||||
Three months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance, September 30 | $ | 10.7 | $ | 4.7 | |||||||||||||
Additions | 9 | 1 | |||||||||||||||
Payments | (1.5 | ) | (0.9 | ) | |||||||||||||
Effect of exchange rate changes | 0.3 | 0.2 | |||||||||||||||
Balance, December 31 | $ | 18.5 | $ | 5 | |||||||||||||
Nine months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance, March 31 | $ | 11.6 | $ | - | |||||||||||||
Additions | 9.8 | 6.6 | |||||||||||||||
Payments | (3.7 | ) | (1.9 | ) | |||||||||||||
Effect of exchange rate changes | 0.8 | 0.3 | |||||||||||||||
Balance, December 31 | $ | 18.5 | $ | 5 | |||||||||||||
During the three months ended December 31, 2013, the Company recorded asset impairment charges of $2.0 million, primarily related to a manufacturing facility in Germany that the Company plans to close. During the three and nine months ended December 31, 2012, the Company recorded asset impairment charges of $8.3 million and $25.1 million, respectively, to reduce the carrying values of certain facilities held for sale in the Europe and North America segments to their estimated fair values, less costs to sell. |
Other_Income_and_Expense
Other Income and Expense | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Other Income and Expense [Abstract] | ' | ||||||||||||||||
Other Income and Expense | ' | ||||||||||||||||
Note 8: Other Income and Expense | |||||||||||||||||
Other income and expense consisted of the following: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equity in earnings of non-consolidated affiliate | $ | 0.1 | $ | - | $ | 0.5 | $ | 0.1 | |||||||||
Interest income | 0.1 | 0.1 | 0.3 | 0.5 | |||||||||||||
Foreign currency transactions | (0.6 | ) | (0.3 | ) | (1.7 | ) | (0.6 | ) | |||||||||
Other non-operating expense - net | 0.1 | (0.1 | ) | 0.1 | - | ||||||||||||
Total other expense - net | $ | (0.3 | ) | $ | (0.3 | ) | $ | (0.8 | ) | $ | - | ||||||
Foreign currency transactions primarily consist of foreign currency transaction gains and losses on the re-measurement or settlement of foreign currency denominated assets and liabilities, including inter-company loans and transactions denominated in a foreign currency, along with unrealized gains and losses on foreign currency exchange contracts. |
Income_Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2013 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
Note 9: Income Taxes | |
For the three months ended December 31, 2013 and 2012, the Company’s effective income tax rate was (30.8) percent and (21.7) percent, respectively. For the nine months ended December 31, 2013 and 2012, the Company’s effective income tax rate was 39.9 percent and (33.3) percent, respectively. | |
The most significant factors impacting changes in the effective tax rate for the three and nine months ended December 31, 2013 as compared to the prior year periods were increases in the valuation allowance for certain foreign jurisdictions for which no benefit is recognized, the changing mix of foreign and domestic earnings, and a $2.5 million benefit from a foreign tax law change. At December 31, 2013, the Company continued to record a full valuation allowance against its net deferred tax assets in the U.S. ($138.7 million) and certain foreign jurisdictions ($40.8 million) as it is more likely than not these assets will not be realized based on historical performance. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions until the need for a valuation allowance is eliminated. The need for a valuation allowance is eliminated when the Company determines it is more likely than not the deferred tax assets will be realized. It is possible that in the fourth quarter of fiscal 2014 or in fiscal 2015, the U.S. taxing jurisdiction will no longer be in a cumulative three-year loss position, thereby removing significant negative evidence concerning the valuation allowance. | |
Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate. Under this methodology, the Company applies an estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The tax impacts of certain significant, unusual or infrequently occurring items are recorded in the period in which they occur. For the nine months ended December 31, 2013, the U.S. taxing jurisdiction had year-to-date pre-tax earnings and is forecasting pre-tax earnings for the full fiscal year. As such, the U.S. taxing jurisdiction is included in the overall annual effective tax rate methodology. The impact of the Company’s operations in certain foreign locations are excluded from the overall effective tax rate methodology and recorded discretely based upon year-to-date results as these operations anticipate net operating losses for the full fiscal year. | |
The Company files income tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. The German taxing authority completed its examination of fiscal years 2006 through 2010 during the third quarter of fiscal 2014. At December 31, 2013, the Company was not under audit nor was it notified of any other tax examinations covering open periods in any taxing jurisdiction. During the next twelve months, the Company believes it is reasonably possible the amount of unrecognized tax benefits could be reduced up to $5.3 million as a result of the resolution of worldwide tax matters and the lapses of statutes of limitations. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
Note 10: Earnings Per Share | |||||||||||||||||
The components of basic and diluted earnings per share were as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net earnings (loss) attributable to Modine | $ | (3.6 | ) | $ | (8.7 | ) | $ | 11 | $ | (22.1 | ) | ||||||
Less: Undistributed earnings attributable to unvested shares | - | - | (0.1 | ) | - | ||||||||||||
Net earnings (loss) available to Modine shareholders | $ | (3.6 | ) | $ | (8.7 | ) | $ | 10.9 | $ | (22.1 | ) | ||||||
Weighted average shares outstanding - basic | 46.9 | 46.7 | 46.8 | 46.6 | |||||||||||||
Effect of dilutive securities | - | - | 0.7 | - | |||||||||||||
Weighted average shares outstanding - diluted | 46.9 | 46.7 | 47.5 | 46.6 | |||||||||||||
Earnings per share: | |||||||||||||||||
Net earnings (loss) per share - basic | $ | (0.08 | ) | $ | (0.19 | ) | $ | 0.23 | $ | (0.47 | ) | ||||||
Net earnings (loss) per share - diluted | $ | (0.08 | ) | $ | (0.19 | ) | $ | 0.23 | $ | (0.47 | ) | ||||||
For the three months ended December 31, 2013, the total number of potential dilutive securities was 0.8 million. For each of the three and nine months ended December 31, 2012, the total number of potential dilutive securities was 0.3 million. However, these securities were not included in the computation of diluted net loss per share since to do so would have decreased the loss per share. For the three and nine months ended December 31, 2013, the calculation of diluted earnings per share excluded 0.5 million and 0.7 million stock options, respectively, because they were anti-dilutive. For the three and nine months ended December 31, 2012, the calculation of diluted earnings per share excluded 1.2 million stock options because they were anti-dilutive. |
Inventories
Inventories | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 11: Inventories | |||||||||
Inventories consisted of the following: | |||||||||
December 31, | March 31, | ||||||||
2013 | 2013 | ||||||||
Raw materials and work in process | $ | 86.3 | $ | 88.1 | |||||
Finished goods | 32.6 | 30.7 | |||||||
Total inventories | $ | 118.9 | $ | 118.8 |
Property_Plant_and_Equipment
Property, Plant and Equipment | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Note 12: Property, Plant and Equipment | |||||||||
Property, plant and equipment consisted of the following: | |||||||||
31-Dec-13 | 31-Mar-13 | ||||||||
Gross property, plant and equipment | $ | 1,068.50 | $ | 1,033.10 | |||||
Accumulated depreciation | (715.7 | ) | (677.2 | ) | |||||
Net property, plant and equipment | $ | 352.8 | $ | 355.9 |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||
Note 13: Goodwill and Intangible Assets | |||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | |||||||||||||||||||||||||
South | Commercial | ||||||||||||||||||||||||
Asia | America | Products | Total | ||||||||||||||||||||||
Goodwill, March 31, 2013 | $ | 0.5 | $ | 12.2 | $ | 16 | $ | 28.7 | |||||||||||||||||
Effect of exchange rate changes | - | (1.7 | ) | 1.2 | (0.5 | ) | |||||||||||||||||||
Goodwill, December 31, 2013 | $ | 0.5 | $ | 10.5 | $ | 17.2 | $ | 28.2 | |||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Intangible | Carrying | Accumulated | Intangible | ||||||||||||||||||||
Value | Amortization | Assets | Value | Amortization | Assets | ||||||||||||||||||||
Tradenames | $ | 10 | $ | (5.4 | ) | $ | 4.6 | $ | 9.6 | $ | (4.7 | ) | $ | 4.9 | |||||||||||
Acquired technology | 3.5 | (0.2 | ) | 3.3 | 3.5 | (0.1 | ) | 3.4 | |||||||||||||||||
Total intangible assets | $ | 13.5 | $ | (5.6 | ) | $ | 7.9 | $ | 13.1 | $ | (4.8 | ) | $ | 8.3 | |||||||||||
Amortization expense for each of the three months ended December 31, 2013 and 2012 was $0.2 million. Amortization expense for the nine months ended December 31, 2013 and 2012 was $0.6 million and $0.5 million, respectively. Estimated future amortization expense is as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Fiscal | Amortization | ||||||||||||||||||||||||
Year | Expense | ||||||||||||||||||||||||
Remainder of 2014 | $ | 0.2 | |||||||||||||||||||||||
2015 | 1.1 | ||||||||||||||||||||||||
2016 | 1.2 | ||||||||||||||||||||||||
2017 | 1.3 | ||||||||||||||||||||||||
2018 | 1.3 | ||||||||||||||||||||||||
2019 & Beyond | 2.8 |
Product_Warranties
Product Warranties | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Product Warranties [Abstract] | ' | ||||||||
Product Warranties | ' | ||||||||
Note 14: Product Warranties | |||||||||
Changes in accrued warranty costs were as follows: | |||||||||
Three months ended December 31, | |||||||||
2013 | 2012 | ||||||||
Balance, September 30 | $ | 9.3 | $ | 12.3 | |||||
Accruals for warranties issued | 1.9 | 1.2 | |||||||
Accruals related to pre-existing warranties | 0.9 | 0.3 | |||||||
Settlements | (1.6 | ) | (1.6 | ) | |||||
Effect of exchange rate changes | 0.1 | - | |||||||
Balance, December 31 | $ | 10.6 | $ | 12.2 | |||||
Nine months ended December 31, | |||||||||
2013 | 2012 | ||||||||
Balance, March 31 | $ | 12.6 | $ | 11.4 | |||||
Accruals for warranties issued | 4.3 | 4 | |||||||
Accruals related to pre-existing warranties | 3.4 | 1.5 | |||||||
Settlements | (9.8 | ) | (4.4 | ) | |||||
Effect of exchange rate changes | 0.1 | (0.3 | ) | ||||||
Balance, December 31 | $ | 10.6 | $ | 12.2 |
Indebtedness
Indebtedness | 9 Months Ended |
Dec. 31, 2013 | |
Indebtedness [Abstract] | ' |
Indebtedness | ' |
Note 15: Indebtedness | |
The Company’s long-term debt includes $125.0 million of 6.8 percent Senior Notes. In August 2013, the Company entered into a $175.0 million Amended and Restated Credit Agreement with a syndicate of banks. The multi-currency credit agreement, which expires in August 2018, replaced the Company’s then-existing $145.0 million revolving credit facility which would have expired in August 2014. Borrowings under the credit agreement bear interest at a variable rate based on LIBOR plus 125 to 225 basis points depending upon the Company’s leverage ratio, defined below. At December 31, 2013 and March 31, 2013, the Company had no borrowings outstanding under its revolving credit facilities. At December 31, 2013, domestic letters of credit totaled $8.0 million, resulting in available borrowings under the Company’s domestic revolving credit facility of $167.0 million. | |
The Company also maintains credit agreements for its foreign subsidiaries with outstanding short-term borrowings at December 31, 2013 and March 31, 2013 of $35.9 million and $30.6 million, respectively. At December 31, 2013, the Company’s foreign unused lines of credit in Europe, Brazil, China, and India totaled $46.0 million. In aggregate, the Company had total available lines of credit of $213.0 million at December 31, 2013. | |
Provisions in the Company’s revolving credit facility, Senior Note agreements, and various foreign credit agreements require the Company to maintain compliance with various covenants and include certain cross-default clauses. Under the Company’s primary debt agreements in the U.S., the Company is subject to a leverage ratio covenant, which requires the Company to limit its consolidated indebtedness, less a certain portion of the Company’s cash balance, both as defined by the credit agreement, to no more than three and one-quarter times consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBIDTA”). The Company is also subject to an interest expense coverage ratio, which requires the Company to maintain Adjusted EBIDTA of at least three times consolidated interest expense. The Company was in compliance with its debt covenants as of December 31, 2013. | |
The fair value of long-term debt is estimated using discounted future cash flows at rates offered to the Company for similar debt instruments with comparable maturities. At December 31, 2013 and March 31, 2013, the carrying value of Modine’s long-term debt approximated fair value, with the exception of the Senior Notes, which had a fair value of approximately $139.0 million at both December 31, 2013 and March 31, 2013. The fair value of the Senior Notes is categorized as Level 2 within the fair value hierarchy. Refer to Note 4 for the definition of a Level 2 fair value measurement. |
Derivatives_Instruments
Derivatives Instruments | 9 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Derivatives Instruments [Abstract] | ' | |||||||||||||||||||||
Derivatives Instruments | ' | |||||||||||||||||||||
Note 16: Derivatives Instruments | ||||||||||||||||||||||
Modine uses derivative financial instruments from time to time, as a tool to manage certain financial risks. Leveraged derivatives are prohibited by Company policy. Accounting for derivatives and hedging activities requires derivative financial instruments to be measured at fair value and recognized as assets or liabilities in the consolidated balance sheets. Accounting for the gain or loss resulting from the change in the fair value of the derivative financial instruments depends on whether it has been designated, and is effective, as a hedge and, if so, on the nature of the hedging activity. | ||||||||||||||||||||||
Commodity Derivatives: The Company has, from time to time, entered into futures contracts related to certain forecasted purchases of aluminum and copper. The Company’s strategy in entering into these contracts is to reduce its exposure to changing market prices for future purchases of these commodities. The Company has not designated commodity contracts entered into beginning in fiscal 2013 for hedge accounting. Accordingly, unrealized gains and losses on those contracts are recorded within cost of sales. The Company designated contracts entered into prior to fiscal 2013 for hedge accounting. Accordingly, the amounts recorded in accumulated other comprehensive (loss) income (“AOCI”) related to those contracts will remain in AOCI until the underlying commodity purchases impact earnings. | ||||||||||||||||||||||
Foreign exchange contracts: The Company’s foreign exchange risk management strategy uses derivative financial instruments in a limited way to mitigate foreign currency exchange risk. The Company periodically enters into foreign currency exchange contracts to hedge specific foreign currency denominated assets and liabilities. The Company has not designated these contracts for hedge accounting. Accordingly, unrealized gains and losses related to the change in fair value are recorded in other income and expense. Gains and losses on these foreign currency contracts are offset by foreign currency gains and losses associated with the related assets and liabilities. | ||||||||||||||||||||||
The fair value of the Company’s derivative financial instruments recorded in the consolidated balance sheets were as follows: | ||||||||||||||||||||||
Balance Sheet Location | 31-Dec-13 | 31-Mar-13 | ||||||||||||||||||||
Derivative instruments: | ||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 0.1 | $ | - | |||||||||||||||||
Foreign exchange contracts | Other current liabilities | - | 0.1 | |||||||||||||||||||
Commodity derivatives | Other current liabilities | 0.2 | 1.2 | |||||||||||||||||||
Commodity derivatives | Other noncurrent liabilities | 0.1 | 0.1 | |||||||||||||||||||
The amounts recorded in AOCI and in the consolidated statements of operations for all of the Company’s derivative financial instruments were as follows: | ||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||
31-Dec-13 | 31-Dec-13 | |||||||||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | |||||||||||||||||
Operations Location | ||||||||||||||||||||||
Commodity derivatives | $ | 0.2 | Cost of sales | $ | 0.1 | $ | 0.2 | $ | 0.3 | $ | 0.4 | |||||||||||
Foreign exchange contracts | - | Other expense - net | - | (0.1 | ) | - | (0.3 | ) | ||||||||||||||
Total | $ | 0.2 | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.1 | ||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||
31-Dec-12 | 31-Dec-12 | |||||||||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | |||||||||||||||||
Operations Location | ||||||||||||||||||||||
Commodity derivatives | $ | 0.7 | Cost of sales | $ | 0.7 | $ | 1.1 | $ | 2.4 | $ | 3.8 | |||||||||||
Foreign exchange contracts | - | Other expense - net | - | (0.2 | ) | - | (0.3 | ) | ||||||||||||||
Total | $ | 0.7 | $ | 0.7 | $ | 0.9 | $ | 2.4 | $ | 3.5 |
Contingencies_and_Litigation
Contingencies and Litigation | 9 Months Ended |
Dec. 31, 2013 | |
Contingencies and Litigation [Abstract] | ' |
Contingencies and Litigation | ' |
Note 17: Contingencies and Litigation | |
Environmental: The United States Environmental Protection Agency (“USEPA”) has designated the Company as a potentially responsible party (“PRP”) for remediation of three sites where the Company had involvement. These sites include: Auburn Incinerator, Inc./Lake Calumet Cluster (Illinois), Cam-Or (Indiana) and a scrap metal site known as Chemetco (Illinois). In addition, Modine is voluntarily participating in the care of an inactive landfill owned by the City of Trenton (Missouri). These sites are not Company-owned and allegedly contain materials attributable to Modine from past operations. The percentage of material allegedly attributable to Modine is relatively low. Remediation of these sites is in various stages of administrative or judicial proceedings and includes recovery of past governmental costs and the costs of future investigations and remedial actions. The Company accrues for costs anticipated for the remedial settlement of the sites listed above if they are probable and can be reasonably determined. Costs anticipated for the remedial settlement of the sites listed above that are not probable or cannot be reasonably determined at this time have not been accrued; however, the Company does not believe any potential costs would be material to the Company’s financial position due to Modine’s relatively small portion of contributed materials. | |
The Company has recorded environmental investigation and remediation accruals for groundwater contamination at its manufacturing facility in Brazil and subsurface contamination at its former manufacturing facility in the Netherlands, along with other lesser environmental matters at certain facilities located in the United States. These accruals generally relate to facilities where past operations followed practices and procedures that were considered acceptable under then-existing regulations, or where the Company is a successor to the obligations of prior owners, and current laws and regulations require investigative and/or remedial work to ensure sufficient environmental compliance. The accruals for these environmental matters totaled $5.0 million and $5.2 million at December 31, 2013 and March 31, 2013, respectively. As additional information becomes available, any potential liability related to these matters will be assessed and the estimated accrual will be revised, if necessary. Based on currently available information, Modine believes that the ultimate outcome of these matters, individually and in the aggregate, will not have a material adverse effect on its financial position. However, these matters are subject to inherent uncertainties, and unfavorable outcomes could occur, including significant monetary damages. During fiscal 2011, one of the adjacent businesses to the Company’s facility in Brazil filed suit against Modine’s Brazilian subsidiary seeking remediation and certain other damages as a result of contamination allegedly attributable to Modine’s operations. The Company is defending this suit and believes that the ultimate outcome of this matter will not be material. | |
Europe value added tax: During fiscal 2012, the Company determined it was not properly applying value added tax (“VAT”) to certain cross-border transactions within the Europe segment and established an accrual of $10.7 million for estimated VAT liabilities, including interest and penalties. During fiscal 2013 and 2014, the Company completed the registration and filing process with the taxing authorities and began making payments to the applicable jurisdictions. During the three and nine months ended December 31, 2013, the Company recorded reductions to SG&A expenses of $1.1 million and $1.6 million, respectively, as a result of favorable changes to the estimated VAT obligations. As of December 31, 2013 and March 31, 2013, the accrual for estimated VAT obligations was $2.8 million and $4.4 million, respectively. | |
Other litigation: In the normal course of business, the Company and its subsidiaries are named as defendants in various other lawsuits and enforcement proceedings by private parties, governmental agencies and/or others in which claims are asserted against Modine. In the opinion of management, the liabilities, if any, which may ultimately result from such lawsuits or proceedings are not expected to have a material adverse effect on the Company’s consolidated financial statements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Note 18: Accumulated Other Comprehensive Loss | |||||||||||||||||
Changes in accumulated other comprehensive loss, net of tax, were as follows: | |||||||||||||||||
Three months ended December 31, 2013 | |||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency | Hedges | Benefit Plans | |||||||||||||||
Translation | |||||||||||||||||
Balance, September 30, 2013 | $ | 23.7 | $ | (0.9 | ) | $ | (142.6 | ) | $ | (119.8 | ) | ||||||
Other comprehensive income before reclassifications | 0.9 | - | - | 0.9 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 1.6 | 1.6 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (0.3 | ) | (0.3 | ) | |||||||||||
Commodity derivatives (b) | - | 0.1 | - | 0.1 | |||||||||||||
Total other comprehensive income | 0.9 | 0.1 | 1.3 | 2.3 | |||||||||||||
Balance, December 31, 2013 | $ | 24.6 | $ | (0.8 | ) | $ | (141.3 | ) | $ | (117.5 | ) | ||||||
Nine months ended December 31, 2013 | |||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency | Hedges | Benefit Plans | |||||||||||||||
Translation | |||||||||||||||||
Balance, March 31, 2013 | $ | 17.8 | $ | (1.1 | ) | $ | (145.1 | ) | $ | (128.4 | ) | ||||||
Other comprehensive income before reclassifications | 6.8 | - | - | 6.8 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 4.7 | 4.7 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (0.9 | ) | (0.9 | ) | |||||||||||
Commodity derivatives (b) | - | 0.3 | - | 0.3 | |||||||||||||
Total other comprehensive income | 6.8 | 0.3 | 3.8 | 10.9 | |||||||||||||
Balance, December 31, 2013 | $ | 24.6 | $ | (0.8 | ) | $ | (141.3 | ) | $ | (117.5 | ) | ||||||
(a) | Amounts are included in the calculation of net periodic benefit cost. See Note 5 for additional information. | ||||||||||||||||
(b) | Reclassifications for commodity derivatives are included in cost of sales. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||
Note 19: Segment Information | |||||||||||||||||||||||||||||||||
The following is a summary of net sales, gross profit, operating income, and total assets by segment: | |||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||
North America | $ | 128.9 | $ | 128.2 | $ | 423.6 | $ | 425.2 | |||||||||||||||||||||||||
Europe | 140.5 | 115.7 | 425.6 | 359.9 | |||||||||||||||||||||||||||||
South America | 27.4 | 31.7 | 93.6 | 97.1 | |||||||||||||||||||||||||||||
Asia | 17.1 | 13.2 | 51.6 | 42.8 | |||||||||||||||||||||||||||||
Commercial Products | 37 | 41.3 | 104.2 | 105.3 | |||||||||||||||||||||||||||||
Segment net sales | 350.9 | 330.1 | 1,098.60 | 1,030.30 | |||||||||||||||||||||||||||||
Corporate and eliminations | (3.9 | ) | (4.0 | ) | (11.6 | ) | (13.9 | ) | |||||||||||||||||||||||||
Net sales | $ | 347 | $ | 326.1 | $ | 1,087.00 | $ | 1,016.40 | |||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Gross profit: | % of sales | % of sales | % of sales | % of sales | |||||||||||||||||||||||||||||
North America | $ | 20 | 15.5 | % | $ | 17.3 | 13.5 | % | $ | 70.5 | 16.6 | % | $ | 59.4 | 14 | % | |||||||||||||||||
Europe | 17.2 | 12.2 | % | 12.1 | 10.4 | % | 51.2 | 12 | % | 44.7 | 12.4 | % | |||||||||||||||||||||
South America | 4.5 | 16.3 | % | 5.6 | 17.5 | % | 16.4 | 17.5 | % | 16.1 | 16.5 | % | |||||||||||||||||||||
Asia | 2 | 11.7 | % | - | 0.2 | % | 6.1 | 11.8 | % | 0.5 | 1.1 | % | |||||||||||||||||||||
Commercial Products | 13.1 | 35.5 | % | 13.1 | 31.6 | % | 31.4 | 30.1 | % | 31.1 | 29.5 | % | |||||||||||||||||||||
Segment gross profit | 56.8 | 16.2 | % | 48.1 | 14.6 | % | 175.6 | 16 | % | 151.8 | 14.7 | % | |||||||||||||||||||||
Corporate and eliminations | - | - | 0.1 | - | 0.3 | - | 0.7 | - | |||||||||||||||||||||||||
Gross profit | $ | 56.8 | 16.4 | % | $ | 48.2 | 14.8 | % | $ | 175.9 | 16.2 | % | $ | 152.5 | 15 | % | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||||||
North America | $ | 8.7 | $ | 8.2 | $ | 34.7 | $ | 28.9 | |||||||||||||||||||||||||
Europe (a) | (5.3 | ) | (7.9 | ) | 6 | (22.6 | ) | ||||||||||||||||||||||||||
South America | 1.1 | 2.6 | 6.2 | 7.6 | |||||||||||||||||||||||||||||
Asia | (0.6 | ) | (2.5 | ) | (2.0 | ) | (7.1 | ) | |||||||||||||||||||||||||
Commercial Products | 5.3 | 4.7 | 7.5 | 8.3 | |||||||||||||||||||||||||||||
Segment operating income | 9.2 | 5.1 | 52.4 | 15.1 | |||||||||||||||||||||||||||||
Corporate and eliminations (a) | (8.3 | ) | (8.9 | ) | (21.9 | ) | (21.8 | ) | |||||||||||||||||||||||||
Operating income (loss) | $ | 0.9 | $ | (3.8 | ) | $ | 30.5 | $ | (6.7 | ) | |||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | ||||||||||||||||||||||||||||||||
Total assets: | |||||||||||||||||||||||||||||||||
North America | $ | 202.3 | $ | 218.3 | |||||||||||||||||||||||||||||
Europe | 354.8 | 332.2 | |||||||||||||||||||||||||||||||
South America | 75.9 | 91.8 | |||||||||||||||||||||||||||||||
Asia | 92.9 | 91.3 | |||||||||||||||||||||||||||||||
Commercial Products (b) | 133.7 | 73.7 | |||||||||||||||||||||||||||||||
Corporate and eliminations | 29.9 | 11.5 | |||||||||||||||||||||||||||||||
Total assets | $ | 889.5 | $ | 818.8 | |||||||||||||||||||||||||||||
(a) | Segment operating income for fiscal 2013 has been recast to conform to the fiscal 2014 presentation. The Company has modified its internal financial reporting of intercompany charges for research and development and intercompany royalties between Corporate and the Europe segment. For the three and nine months ended December 31, 2012, the impact was $2.2 million and $6.8 million, respectively. There was no impact on the total Company financial results. | ||||||||||||||||||||||||||||||||
(b) | Total assets within the Commercial Products segment included receivables and cash advances from the Company’s insurance provider related to the Airedale fire, which totaled $50.0 million as of December 31, 2013. See Note 2 for additional information. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Assets and liabilities recorded at fair value on a recurring basis | ' | ||||||||||||||||
At December 31, 2013, assets and liabilities recorded at fair value on a recurring basis were as follows: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Trading securities | $ | 2.6 | $ | - | $ | - | $ | 2.6 | |||||||||
Derivative financial instruments | - | 0.1 | - | 0.1 | |||||||||||||
Total assets | $ | 2.6 | $ | 0.1 | $ | - | $ | 2.7 | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | $ | - | $ | 0.3 | $ | - | $ | 0.3 | |||||||||
Deferred compensation obligations | 2.6 | - | - | 2.6 | |||||||||||||
Total liabilities | $ | 2.6 | $ | 0.3 | $ | - | $ | 2.9 | |||||||||
At March 31, 2013, assets and liabilities recorded at fair value on a recurring basis were as follows: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Assets: | |||||||||||||||||
Trading securities | $ | 2.3 | $ | - | $ | - | $ | 2.3 | |||||||||
Total assets | $ | 2.3 | $ | - | $ | - | $ | 2.3 | |||||||||
Liabilities: | |||||||||||||||||
Derivative financial instruments | $ | - | $ | 1.4 | $ | - | $ | 1.4 | |||||||||
Deferred compensation obligations | 2.3 | - | - | 2.3 | |||||||||||||
Total liabilities | $ | 2.3 | $ | 1.4 | $ | - | $ | 3.7 |
Pension_and_Postretirement_Ben1
Pension and Postretirement Benefits (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Pension and Postretirement Benefits [Abstract] | ' | ||||||||||||||||||||||||||||||||
Pension and Postretirement Benefit Plans | ' | ||||||||||||||||||||||||||||||||
Costs for Modine's pension and postretirement benefit plans included the following components: | |||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
Pension | Postretirement | Pension | Postretirement | ||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||
Service cost | $ | 0.2 | $ | 0.1 | $ | - | $ | - | $ | 0.5 | $ | 0.5 | $ | - | $ | - | |||||||||||||||||
Interest cost | 3.2 | 3.4 | 0.1 | 0.1 | 9.7 | 10.1 | 0.2 | 0.2 | |||||||||||||||||||||||||
Expected return on plan assets | (3.9 | ) | (4.0 | ) | - | - | (11.8 | ) | (12.1 | ) | - | - | |||||||||||||||||||||
Amortization of: | |||||||||||||||||||||||||||||||||
Unrecognized net loss | 1.6 | 1.2 | - | - | 4.7 | 3.7 | - | - | |||||||||||||||||||||||||
Unrecognized prior service credit | - | - | (0.3 | ) | (0.4 | ) | - | - | (0.9 | ) | (1.1 | ) | |||||||||||||||||||||
Net periodic benefit cost (income) | $ | 1.1 | $ | 0.7 | $ | (0.2 | ) | $ | (0.3 | ) | $ | 3.1 | $ | 2.2 | $ | (0.7 | ) | $ | (0.9 | ) |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Fair market value of stock-based compensation awards | ' | ||||||||||||||||
The fair market value of stock-based compensation awards granted during the nine months ended December 31, 2013 and 2012 were as follows: | |||||||||||||||||
Nine months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Shares | Per Award | Shares | Per Award | ||||||||||||||
Stock options | 0.2 | $ | 7.76 | 0.2 | $ | 4.26 | |||||||||||
Restricted stock - retention | 0.3 | 10.4 | 0.4 | 5.8 | |||||||||||||
Restricted stock - performance based | 0.2 | 10.4 | 0.4 | 5.75 | |||||||||||||
Unrestricted stock | 0.1 | 14.53 | 0.1 | 7.14 | |||||||||||||
Assumptions used in determining fair value of options | ' | ||||||||||||||||
The following assumptions were used in determining the fair value for stock options: | |||||||||||||||||
Nine months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Expected life of awards in years | 6.3 | 6.3 | |||||||||||||||
Risk-free interest rate | 1.3 | % | 0.9 | % | |||||||||||||
Expected volatility of the Company's stock | 88.7 | % | 87.4 | % | |||||||||||||
Expected dividend yield on the Company's stock | 0 | % | 0 | % | |||||||||||||
Unrecognized compensation cost related to non-vested stock-based compensation awards | ' | ||||||||||||||||
As of December 31, 2013, the total remaining unrecognized compensation cost related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows: | |||||||||||||||||
Unrecognized | Weighted Average Remaining Service | ||||||||||||||||
Compensation | Period in Years | ||||||||||||||||
Cost | |||||||||||||||||
Stock options | $ | 1.5 | 2.7 | ||||||||||||||
Restricted stock - retention | 4.3 | 2.9 | |||||||||||||||
Restricted stock - performance based | 2.3 | 2.1 | |||||||||||||||
Total | $ | 8.1 | 2.6 |
Restructuring_and_Impairment_C1
Restructuring and Impairment Charges (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Restructuring and Impairment Charges [Abstract] | ' | ||||||||||||||||
Restructuring reserve | ' | ||||||||||||||||
The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance related to the Europe segment restructuring program were as follows: | |||||||||||||||||
Three months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance, September 30 | $ | 10.7 | $ | 4.7 | |||||||||||||
Additions | 9 | 1 | |||||||||||||||
Payments | (1.5 | ) | (0.9 | ) | |||||||||||||
Effect of exchange rate changes | 0.3 | 0.2 | |||||||||||||||
Balance, December 31 | $ | 18.5 | $ | 5 | |||||||||||||
Nine months ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Balance, March 31 | $ | 11.6 | $ | - | |||||||||||||
Additions | 9.8 | 6.6 | |||||||||||||||
Payments | (3.7 | ) | (1.9 | ) | |||||||||||||
Effect of exchange rate changes | 0.8 | 0.3 | |||||||||||||||
Balance, December 31 | $ | 18.5 | $ | 5 | |||||||||||||
Restructuring costs | ' | ||||||||||||||||
Restructuring and repositioning expenses related to the Europe segment restructuring program were as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Employee severance and related benefits | $ | 9 | $ | 1 | $ | 9.8 | $ | 6.6 | |||||||||
Accelerated depreciation | - | - | 4.3 | - | |||||||||||||
Other repositioning costs | 0.4 | 0.4 | 0.7 | 0.7 | |||||||||||||
Total restructuring and repositioning expenses | $ | 9.4 | $ | 1.4 | $ | 14.8 | $ | 7.3 |
Other_Income_and_Expense_Table
Other Income and Expense (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Other Income and Expense [Abstract] | ' | ||||||||||||||||
Other income and expense | ' | ||||||||||||||||
Other income and expense consisted of the following: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Equity in earnings of non-consolidated affiliate | $ | 0.1 | $ | - | $ | 0.5 | $ | 0.1 | |||||||||
Interest income | 0.1 | 0.1 | 0.3 | 0.5 | |||||||||||||
Foreign currency transactions | (0.6 | ) | (0.3 | ) | (1.7 | ) | (0.6 | ) | |||||||||
Other non-operating expense - net | 0.1 | (0.1 | ) | 0.1 | - | ||||||||||||
Total other expense - net | $ | (0.3 | ) | $ | (0.3 | ) | $ | (0.8 | ) | $ | - |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Components of basic and diluted earnings per share | ' | ||||||||||||||||
The components of basic and diluted earnings per share were as follows: | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Net earnings (loss) attributable to Modine | $ | (3.6 | ) | $ | (8.7 | ) | $ | 11 | $ | (22.1 | ) | ||||||
Less: Undistributed earnings attributable to unvested shares | - | - | (0.1 | ) | - | ||||||||||||
Net earnings (loss) available to Modine shareholders | $ | (3.6 | ) | $ | (8.7 | ) | $ | 10.9 | $ | (22.1 | ) | ||||||
Weighted average shares outstanding - basic | 46.9 | 46.7 | 46.8 | 46.6 | |||||||||||||
Effect of dilutive securities | - | - | 0.7 | - | |||||||||||||
Weighted average shares outstanding - diluted | 46.9 | 46.7 | 47.5 | 46.6 | |||||||||||||
Earnings per share: | |||||||||||||||||
Net earnings (loss) per share - basic | $ | (0.08 | ) | $ | (0.19 | ) | $ | 0.23 | $ | (0.47 | ) | ||||||
Net earnings (loss) per share - diluted | $ | (0.08 | ) | $ | (0.19 | ) | $ | 0.23 | $ | (0.47 | ) |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consisted of the following: | |||||||||
31-Dec-13 | 31-Mar-13 | ||||||||
Raw materials and work in process | $ | 86.3 | $ | 88.1 | |||||
Finished goods | 32.6 | 30.7 | |||||||
Total inventories | $ | 118.9 | $ | 118.8 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment consisted of the following: | |||||||||
31-Dec-13 | 31-Mar-13 | ||||||||
Gross property, plant and equipment | $ | 1,068.50 | $ | 1,033.10 | |||||
Accumulated depreciation | (715.7 | ) | (677.2 | ) | |||||
Net property, plant and equipment | $ | 352.8 | $ | 355.9 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill | ' | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | |||||||||||||||||||||||||
South | Commercial | ||||||||||||||||||||||||
Asia | America | Products | Total | ||||||||||||||||||||||
Goodwill, March 31, 2013 | $ | 0.5 | $ | 12.2 | $ | 16 | $ | 28.7 | |||||||||||||||||
Effect of exchange rate changes | - | (1.7 | ) | 1.2 | (0.5 | ) | |||||||||||||||||||
Goodwill, December 31, 2013 | $ | 0.5 | $ | 10.5 | $ | 17.2 | $ | 28.2 | |||||||||||||||||
Intangible assets | ' | ||||||||||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Intangible | Carrying | Accumulated | Intangible | ||||||||||||||||||||
Value | Amortization | Assets | Value | Amortization | Assets | ||||||||||||||||||||
Tradenames | $ | 10 | $ | (5.4 | ) | $ | 4.6 | $ | 9.6 | $ | (4.7 | ) | $ | 4.9 | |||||||||||
Acquired technology | 3.5 | (0.2 | ) | 3.3 | 3.5 | (0.1 | ) | 3.4 | |||||||||||||||||
Total intangible assets | $ | 13.5 | $ | (5.6 | ) | $ | 7.9 | $ | 13.1 | $ | (4.8 | ) | $ | 8.3 | |||||||||||
Total estimated annual amortization expense | ' | ||||||||||||||||||||||||
Estimated future amortization expense is as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Fiscal | Amortization | ||||||||||||||||||||||||
Year | Expense | ||||||||||||||||||||||||
Remainder of 2014 | $ | 0.2 | |||||||||||||||||||||||
2015 | 1.1 | ||||||||||||||||||||||||
2016 | 1.2 | ||||||||||||||||||||||||
2017 | 1.3 | ||||||||||||||||||||||||
2018 | 1.3 | ||||||||||||||||||||||||
2019 & Beyond | 2.8 |
Product_Warranties_Tables
Product Warranties (Tables) | 9 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Product Warranties [Abstract] | ' | ||||||||
Changes in accrued warranty costs | ' | ||||||||
Changes in accrued warranty costs were as follows: | |||||||||
Three months ended December 31, | |||||||||
2013 | 2012 | ||||||||
Balance, September 30 | $ | 9.3 | $ | 12.3 | |||||
Accruals for warranties issued | 1.9 | 1.2 | |||||||
Accruals related to pre-existing warranties | 0.9 | 0.3 | |||||||
Settlements | (1.6 | ) | (1.6 | ) | |||||
Effect of exchange rate changes | 0.1 | - | |||||||
Balance, December 31 | $ | 10.6 | $ | 12.2 | |||||
Nine months ended December 31, | |||||||||
2013 | 2012 | ||||||||
Balance, March 31 | $ | 12.6 | $ | 11.4 | |||||
Accruals for warranties issued | 4.3 | 4 | |||||||
Accruals related to pre-existing warranties | 3.4 | 1.5 | |||||||
Settlements | (9.8 | ) | (4.4 | ) | |||||
Effect of exchange rate changes | 0.1 | (0.3 | ) | ||||||
Balance, December 31 | $ | 10.6 | $ | 12.2 |
Derivatives_Instruments_Tables
Derivatives Instruments (Tables) | 9 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Derivatives Instruments [Abstract] | ' | |||||||||||||||||||||
Fair value of the derivative financial instruments recorded in the consolidated balance sheets | ' | |||||||||||||||||||||
The fair value of the Company’s derivative financial instruments recorded in the consolidated balance sheets were as follows: | ||||||||||||||||||||||
Balance Sheet Location | 31-Dec-13 | 31-Mar-13 | ||||||||||||||||||||
Derivative instruments: | ||||||||||||||||||||||
Commodity derivatives | Other current assets | $ | 0.1 | $ | - | |||||||||||||||||
Foreign exchange contracts | Other current liabilities | - | 0.1 | |||||||||||||||||||
Commodity derivatives | Other current liabilities | 0.2 | 1.2 | |||||||||||||||||||
Commodity derivatives | Other noncurrent liabilities | 0.1 | 0.1 | |||||||||||||||||||
Amounts recorded in AOCI and in consolidated statement of operations | ' | |||||||||||||||||||||
The amounts recorded in AOCI and in the consolidated statements of operations for all of the Company’s derivative financial instruments were as follows: | ||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||
31-Dec-13 | 31-Dec-13 | |||||||||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | |||||||||||||||||
Operations Location | ||||||||||||||||||||||
Commodity derivatives | $ | 0.2 | Cost of sales | $ | 0.1 | $ | 0.2 | $ | 0.3 | $ | 0.4 | |||||||||||
Foreign exchange contracts | - | Other expense - net | - | (0.1 | ) | - | (0.3 | ) | ||||||||||||||
Total | $ | 0.2 | $ | 0.1 | $ | 0.1 | $ | 0.3 | $ | 0.1 | ||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||
31-Dec-12 | 31-Dec-12 | |||||||||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | Loss Reclassified from AOCI into Earnings (Loss) | Total Loss (Gain) Recognized in Earnings (Loss) | |||||||||||||||||
Operations Location | ||||||||||||||||||||||
Commodity derivatives | $ | 0.7 | Cost of sales | $ | 0.7 | $ | 1.1 | $ | 2.4 | $ | 3.8 | |||||||||||
Foreign exchange contracts | - | Other expense - net | - | (0.2 | ) | - | (0.3 | ) | ||||||||||||||
Total | $ | 0.7 | $ | 0.7 | $ | 0.9 | $ | 2.4 | $ | 3.5 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||
Changes in accumulated other comprehensive loss, net of tax | ' | ||||||||||||||||
Changes in accumulated other comprehensive loss, net of tax, were as follows: | |||||||||||||||||
Three months ended December 31, 2013 | |||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency | Hedges | Benefit Plans | |||||||||||||||
Translation | |||||||||||||||||
Balance, September 30, 2013 | $ | 23.7 | $ | (0.9 | ) | $ | (142.6 | ) | $ | (119.8 | ) | ||||||
Other comprehensive income before reclassifications | 0.9 | - | - | 0.9 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 1.6 | 1.6 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (0.3 | ) | (0.3 | ) | |||||||||||
Commodity derivatives (b) | - | 0.1 | - | 0.1 | |||||||||||||
Total other comprehensive income | 0.9 | 0.1 | 1.3 | 2.3 | |||||||||||||
Balance, December 31, 2013 | $ | 24.6 | $ | (0.8 | ) | $ | (141.3 | ) | $ | (117.5 | ) | ||||||
Nine months ended December 31, 2013 | |||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency | Hedges | Benefit Plans | |||||||||||||||
Translation | |||||||||||||||||
Balance, March 31, 2013 | $ | 17.8 | $ | (1.1 | ) | $ | (145.1 | ) | $ | (128.4 | ) | ||||||
Other comprehensive income before reclassifications | 6.8 | - | - | 6.8 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 4.7 | 4.7 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (0.9 | ) | (0.9 | ) | |||||||||||
Commodity derivatives (b) | - | 0.3 | - | 0.3 | |||||||||||||
Total other comprehensive income | 6.8 | 0.3 | 3.8 | 10.9 | |||||||||||||
Balance, December 31, 2013 | $ | 24.6 | $ | (0.8 | ) | $ | (141.3 | ) | $ | (117.5 | ) | ||||||
(a) | Amounts are included in the calculation of net periodic benefit cost. See Note 5 for additional information. | ||||||||||||||||
(b) | Reclassifications for commodity derivatives are included in cost of sales. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||||||||||||||||||
Net sales, gross profit, operating income and total assets by segment: | ' | ||||||||||||||||||||||||||||||||
The following is a summary of net sales, gross profit, operating income, and total assets by segment: | |||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||
North America | $ | 128.9 | $ | 128.2 | $ | 423.6 | $ | 425.2 | |||||||||||||||||||||||||
Europe | 140.5 | 115.7 | 425.6 | 359.9 | |||||||||||||||||||||||||||||
South America | 27.4 | 31.7 | 93.6 | 97.1 | |||||||||||||||||||||||||||||
Asia | 17.1 | 13.2 | 51.6 | 42.8 | |||||||||||||||||||||||||||||
Commercial Products | 37 | 41.3 | 104.2 | 105.3 | |||||||||||||||||||||||||||||
Segment net sales | 350.9 | 330.1 | 1,098.60 | 1,030.30 | |||||||||||||||||||||||||||||
Corporate and eliminations | (3.9 | ) | (4.0 | ) | (11.6 | ) | (13.9 | ) | |||||||||||||||||||||||||
Net sales | $ | 347 | $ | 326.1 | $ | 1,087.00 | $ | 1,016.40 | |||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Gross profit: | % of sales | % of sales | % of sales | % of sales | |||||||||||||||||||||||||||||
North America | $ | 20 | 15.5 | % | $ | 17.3 | 13.5 | % | $ | 70.5 | 16.6 | % | $ | 59.4 | 14 | % | |||||||||||||||||
Europe | 17.2 | 12.2 | % | 12.1 | 10.4 | % | 51.2 | 12 | % | 44.7 | 12.4 | % | |||||||||||||||||||||
South America | 4.5 | 16.3 | % | 5.6 | 17.5 | % | 16.4 | 17.5 | % | 16.1 | 16.5 | % | |||||||||||||||||||||
Asia | 2 | 11.7 | % | - | 0.2 | % | 6.1 | 11.8 | % | 0.5 | 1.1 | % | |||||||||||||||||||||
Commercial Products | 13.1 | 35.5 | % | 13.1 | 31.6 | % | 31.4 | 30.1 | % | 31.1 | 29.5 | % | |||||||||||||||||||||
Segment gross profit | 56.8 | 16.2 | % | 48.1 | 14.6 | % | 175.6 | 16 | % | 151.8 | 14.7 | % | |||||||||||||||||||||
Corporate and eliminations | - | - | 0.1 | - | 0.3 | - | 0.7 | - | |||||||||||||||||||||||||
Gross profit | $ | 56.8 | 16.4 | % | $ | 48.2 | 14.8 | % | $ | 175.9 | 16.2 | % | $ | 152.5 | 15 | % | |||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Operating income (loss): | |||||||||||||||||||||||||||||||||
North America | $ | 8.7 | $ | 8.2 | $ | 34.7 | $ | 28.9 | |||||||||||||||||||||||||
Europe (a) | (5.3 | ) | (7.9 | ) | 6 | (22.6 | ) | ||||||||||||||||||||||||||
South America | 1.1 | 2.6 | 6.2 | 7.6 | |||||||||||||||||||||||||||||
Asia | (0.6 | ) | (2.5 | ) | (2.0 | ) | (7.1 | ) | |||||||||||||||||||||||||
Commercial Products | 5.3 | 4.7 | 7.5 | 8.3 | |||||||||||||||||||||||||||||
Segment operating income | 9.2 | 5.1 | 52.4 | 15.1 | |||||||||||||||||||||||||||||
Corporate and eliminations (a) | (8.3 | ) | (8.9 | ) | (21.9 | ) | (21.8 | ) | |||||||||||||||||||||||||
Operating income (loss) | $ | 0.9 | $ | (3.8 | ) | $ | 30.5 | $ | (6.7 | ) | |||||||||||||||||||||||
31-Dec-13 | 31-Mar-13 | ||||||||||||||||||||||||||||||||
Total assets: | |||||||||||||||||||||||||||||||||
North America | $ | 202.3 | $ | 218.3 | |||||||||||||||||||||||||||||
Europe | 354.8 | 332.2 | |||||||||||||||||||||||||||||||
South America | 75.9 | 91.8 | |||||||||||||||||||||||||||||||
Asia | 92.9 | 91.3 | |||||||||||||||||||||||||||||||
Commercial Products (b) | 133.7 | 73.7 | |||||||||||||||||||||||||||||||
Corporate and eliminations | 29.9 | 11.5 | |||||||||||||||||||||||||||||||
Total assets | $ | 889.5 | $ | 818.8 | |||||||||||||||||||||||||||||
(a) | Segment operating income for fiscal 2013 has been recast to conform to the fiscal 2014 presentation. The Company has modified its internal financial reporting of intercompany charges for research and development and intercompany royalties between Corporate and the Europe segment. For the three and nine months ended December 31, 2012, the impact was $2.2 million and $6.8 million, respectively. There was no impact on the total Company financial results. | ||||||||||||||||||||||||||||||||
(b) | Total assets within the Commercial Products segment included receivables and cash advances from the Company’s insurance provider related to the Airedale fire, which totaled $50.0 million as of December 31, 2013. See Note 2 for additional information. |
General_Details
General (Details) (Error Correction [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2012 |
Error Correction [Member] | ' | ' |
Out of period adjustments [Abstract] | ' | ' |
Pre-tax earnings | ($0.60) | $0.50 |
After-tax earnings | ($0.50) | ' |
Airedale_Facility_Fire_Details
Airedale Facility Fire (Details) (Loss by Fire [Member], USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 |
Loss by Fire [Member] | ' | ' |
Unusual of Infrequent Item [Line Items] | ' | ' |
Costs not covered by insurance | $0.50 | ' |
Advance received from insurance provider | ' | 24.3 |
Inventory write off | ' | 4.7 |
Equipment write off | ' | 1.4 |
Other costs attributable to fire | ' | 8.2 |
Aggregate losses and costs | ' | 14.3 |
Cash advances in excess of recovery costs and losses | ' | 10 |
Liability to rebuild damaged facility | ' | 50 |
Current liability to rebuild damaged facility | ' | 41 |
Noncurrent liability to rebuild damaged facility | ' | 9 |
Insurance receivable | ' | 40 |
Insurance receivable current | ' | 31 |
Insurance receivable noncurrent | ' | $9 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 9 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2012 |
Geofinity Manufacturing of Surrey, British Columbia [Member] | Radiadores Visconde Ltda [Member] | Radiadores Visconde Ltda [Member] | |||
South America [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Cash consideration, net of cash acquired | $0 | $4.90 | $4.90 | ' | ' |
Purchase price allocation resulted in acquired technology | ' | ' | 3.5 | ' | ' |
Purchase price allocation, working capital net assets | ' | ' | 0.6 | ' | ' |
Purchase price allocation, goodwill | ' | ' | 0.8 | ' | ' |
Acquired technology, amortization period | ' | ' | '10 years | ' | ' |
Percentage of interests acquired (in hundredths) | ' | ' | ' | 50.00% | ' |
Notes payable | ' | ' | ' | 2 | ' |
Selling, General and Administrative Expense Increase Decrease | ' | ' | ' | ' | $2 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets [Abstract] | ' | ' |
Trading securities | $2.60 | $2.30 |
Derivative financial instruments | 0.1 | ' |
Total assets | 2.7 | 2.3 |
Liabilities [Abstract] | ' | ' |
Derivative financial instruments | 0.3 | 1.4 |
Deferred compensation obligations | 2.6 | 2.3 |
Total liabilities | 2.9 | 3.7 |
Level 1 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Trading securities | 2.6 | 2.3 |
Derivative financial instruments | 0 | ' |
Total assets | 2.6 | 2.3 |
Liabilities [Abstract] | ' | ' |
Derivative financial instruments | 0 | 0 |
Deferred compensation obligations | 2.6 | 2.3 |
Total liabilities | 2.6 | 2.3 |
Level 2 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Trading securities | 0 | 0 |
Derivative financial instruments | 0.1 | ' |
Total assets | 0.1 | 0 |
Liabilities [Abstract] | ' | ' |
Derivative financial instruments | 0.3 | 1.4 |
Deferred compensation obligations | 0 | 0 |
Total liabilities | 0.3 | 1.4 |
Level 3 [Member] | ' | ' |
Assets [Abstract] | ' | ' |
Trading securities | 0 | 0 |
Derivative financial instruments | 0 | ' |
Total assets | 0 | 0 |
Liabilities [Abstract] | ' | ' |
Derivative financial instruments | 0 | 0 |
Deferred compensation obligations | 0 | 0 |
Total liabilities | $0 | $0 |
Pension_and_Postretirement_Ben2
Pension and Postretirement Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Contributions by employer | $2.80 | $2.80 | $6.20 | $7.60 |
Pension [Member] | ' | ' | ' | ' |
Pension and postretirement benefit plans [Abstract] | ' | ' | ' | ' |
Service cost | 0.2 | 0.1 | 0.5 | 0.5 |
Interest cost | 3.2 | 3.4 | 9.7 | 10.1 |
Expected return on plan assets | -3.9 | -4 | -11.8 | -12.1 |
Amortization of [Abstract] | ' | ' | ' | ' |
Unrecognized net loss | 1.6 | 1.2 | 4.7 | 3.7 |
Unrecognized prior service credit | 0 | 0 | 0 | 0 |
Net periodic benefit cost (income) | 1.1 | 0.7 | 3.1 | 2.2 |
Postretirement [Member] | ' | ' | ' | ' |
Pension and postretirement benefit plans [Abstract] | ' | ' | ' | ' |
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of [Abstract] | ' | ' | ' | ' |
Unrecognized net loss | 0 | 0 | 0 | 0 |
Unrecognized prior service credit | -0.3 | -0.4 | -0.9 | -1.1 |
Net periodic benefit cost (income) | ($0.20) | ($0.30) | ($0.70) | ($0.90) |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-Based Compensation [Abstract] | ' | ' | ' | ' |
Stock-based compensation cost | $1.50 | $1.40 | $3.10 | $3 |
Performance period | ' | ' | '3 years | ' |
Assumptions used in determining fair value of options [Abstract] | ' | ' | ' | ' |
Expected life of awards in years | ' | ' | '6 years 3 months 18 days | '6 years 3 months 18 days |
Risk-free interest rate (in hundredths) | ' | ' | 1.30% | 0.90% |
Expected volatility of the Company's stock (in hundredths) | ' | ' | 88.70% | 87.40% |
Expected dividend yield on the Company's stock (in hundredths) | ' | ' | 0.00% | 0.00% |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' | ' | ' |
Unrecognized Compensation Cost | 8.1 | ' | 8.1 | ' |
Weighted Average Remaining Service Period in Years | ' | ' | '2 years 7 months 6 days | ' |
Stock options [Member] | ' | ' | ' | ' |
Type and fair value of stock-based compensation awards granted [Abstract] | ' | ' | ' | ' |
Options granted (in shares) | ' | ' | 0.2 | 0.2 |
Options, grant date fair value (in dollars per share) | ' | ' | $7.76 | $4.26 |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' | ' | ' |
Unrecognized Compensation Cost | 1.5 | ' | 1.5 | ' |
Weighted Average Remaining Service Period in Years | ' | ' | '2 years 8 months 12 days | ' |
Restricted stock - retention [Member] | ' | ' | ' | ' |
Type and fair value of stock-based compensation awards granted [Abstract] | ' | ' | ' | ' |
Stock granted (in shares) | ' | ' | 0.3 | 0.4 |
Fair value of stock granted (in dollars per share) | ' | ' | $10.40 | $5.80 |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' | ' | ' |
Unrecognized Compensation Cost | 4.3 | ' | 4.3 | ' |
Weighted Average Remaining Service Period in Years | ' | ' | '2 years 10 months 24 days | ' |
Restricted stock - performance based [Member] | ' | ' | ' | ' |
Type and fair value of stock-based compensation awards granted [Abstract] | ' | ' | ' | ' |
Stock granted (in shares) | ' | ' | 0.2 | 0.4 |
Fair value of stock granted (in dollars per share) | ' | ' | $10.40 | $5.75 |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' | ' | ' |
Unrecognized Compensation Cost | $2.30 | ' | $2.30 | ' |
Weighted Average Remaining Service Period in Years | ' | ' | '2 years 1 month 6 days | ' |
Unrestricted stock [Member] | ' | ' | ' | ' |
Type and fair value of stock-based compensation awards granted [Abstract] | ' | ' | ' | ' |
Stock granted (in shares) | ' | ' | 0.1 | 0.1 |
Fair value of stock granted (in dollars per share) | ' | ' | $14.53 | $7.14 |
Restructuring_and_Impairment_C2
Restructuring and Impairment Charges (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 21 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Europe segment [Member] | Europe segment [Member] | North America and Europe segments [Member] | North America and Europe segments [Member] | Cost of Sales [Member] | Restructuring Expense [Member] | Restructuring Expense [Member] | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset impairment charges | $2 | $8.30 | $2 | $25.10 | $2 | $26.10 | $8.30 | $25.10 | ' | ' | ' |
Changes in accrued severance related to restructuring program [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | 10.7 | 4.7 | 11.6 | 0 | ' | ' | ' | ' | ' | ' | ' |
Additions | 9 | 1 | 9.8 | 6.6 | ' | ' | ' | ' | ' | ' | ' |
Payments | -1.5 | -0.9 | -3.7 | -1.9 | ' | ' | ' | ' | ' | ' | ' |
Effect of exchange rate changes | 0.3 | 0.2 | 0.8 | 0.3 | ' | ' | ' | ' | ' | ' | ' |
Ending Balance | 18.5 | 5 | 18.5 | 5 | ' | ' | ' | ' | ' | ' | ' |
Restructuring and repositioning expenses [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee severance and related benefits | 9 | 1 | 9.8 | 6.6 | ' | 24.7 | ' | ' | ' | ' | ' |
Accelerated depreciation | 0 | 0 | 4.3 | 0 | ' | ' | ' | ' | ' | ' | ' |
Other repositioning costs | 0.4 | 0.4 | 0.7 | 0.7 | ' | 7.1 | ' | ' | ' | ' | ' |
Total restructuring and repositioning expenses | $9.40 | $1.40 | $14.80 | $7.30 | ' | ' | ' | ' | $4.30 | $9.40 | $10.50 |
Other_Income_and_Expense_Detai
Other Income and Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Income and Expense [Abstract] | ' | ' | ' | ' |
Equity in earnings of non-consolidated affiliate | $0.10 | $0 | $0.50 | $0.10 |
Interest income | 0.1 | 0.1 | 0.3 | 0.5 |
Foreign currency transactions | -0.6 | -0.3 | -1.7 | -0.6 |
Other non-operating income - net | 0.1 | -0.1 | 0.1 | 0 |
Total other expense - net | ($0.30) | ($0.30) | ($0.80) | $0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | ' | ' | ' | ' |
Effective income tax rate attributable to continuing operations (in hundredths) | -30.80% | -21.70% | 39.90% | -33.30% |
Reasonably possible amount of unrecognized tax benefits could be reduced during the next twelve months | $5.30 | ' | $5.30 | ' |
Foreign tax benefit from law change | 2.5 | ' | 2.5 | ' |
Domestic Tax Authority [Member] | ' | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' | ' |
Deferred tax asset, valuation allowance | 138.7 | ' | 138.7 | ' |
Foreign Tax Authority [Member] | ' | ' | ' | ' |
Valuation Allowance [Line Items] | ' | ' | ' | ' |
Deferred tax asset, valuation allowance | $40.80 | ' | $40.80 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of basic and diluted earnings per share [Abstract] | ' | ' | ' | ' |
Net earnings (loss) attributable to Modine | ($3.60) | ($8.70) | $11 | ($22.10) |
Less: Undistributed earnings attributable to unvested shares | 0 | 0 | -0.1 | 0 |
Net earnings (loss) available to Modine shareholders | ($3.60) | ($8.70) | $10.90 | ($22.10) |
Weighted average shares outstanding - basic (in shares) | 46.9 | 46.7 | 46.8 | 46.6 |
Effect of dilutive securities (in shares) | 0 | 0 | 0.7 | 0 |
Weighted average shares outstanding - diluted (in shares) | 46.9 | 46.7 | 47.5 | 46.6 |
Net earnings (loss) per share - basic (in dollars per share) | ($0.08) | ($0.19) | $0.23 | ($0.47) |
Net earnings (loss) per share - diluted (in dollars per share) | ($0.08) | ($0.19) | $0.23 | ($0.47) |
Potential dilutive securities (in shares) | 0.8 | 0.3 | ' | 0.3 |
Stock Options [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive securities excluded from computation of earning per share (in shares) | 0.5 | 1.2 | 0.7 | 1.2 |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials and work in process | $86.30 | $88.10 |
Finished goods | 32.6 | 30.7 |
Total inventories | $118.90 | $118.80 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, plant and equipment [Abstract] | ' | ' |
Gross property, plant and equipment | $1,068.50 | $1,033.10 |
Accumulated depreciation | -715.7 | -677.2 |
Net property, plant and equipment | $352.80 | $355.90 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Goodwill, Beginning Balance | ' | ' | $28.70 | ' | ' |
Effect of exchange rate changes | ' | ' | -0.5 | ' | ' |
Goodwill, Ending Balance | 28.2 | ' | 28.2 | ' | ' |
Amortized intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Value | 13.5 | ' | 13.5 | ' | 13.1 |
Accumulated Amortization | -5.6 | ' | -5.6 | ' | -4.8 |
Net Intangible Assets | 7.9 | ' | 7.9 | ' | 8.3 |
Amortization Expense | 0.2 | 0.2 | 0.6 | 0.5 | ' |
Amortization expense, fiscal year maturity [Abstract] | ' | ' | ' | ' | ' |
Remainder of 2014 | 0.2 | ' | 0.2 | ' | ' |
2015 | 1.1 | ' | 1.1 | ' | ' |
2016 | 1.2 | ' | 1.2 | ' | ' |
2017 | 1.3 | ' | 1.3 | ' | ' |
2018 | 1.3 | ' | 1.3 | ' | ' |
2019 & Beyond | 2.8 | ' | 2.8 | ' | ' |
Acquired technology [Member] | ' | ' | ' | ' | ' |
Amortized intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Value | 3.5 | ' | 3.5 | ' | 3.5 |
Accumulated Amortization | -0.2 | ' | -0.2 | ' | -0.1 |
Net Intangible Assets | 3.3 | ' | 3.3 | ' | 3.4 |
Tradenames [Member] | ' | ' | ' | ' | ' |
Amortized intangible assets [Abstract] | ' | ' | ' | ' | ' |
Gross Carrying Value | 10 | ' | 10 | ' | 9.6 |
Accumulated Amortization | -5.4 | ' | -5.4 | ' | -4.7 |
Net Intangible Assets | 4.6 | ' | 4.6 | ' | 4.9 |
Asia [Member] | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Goodwill, Beginning Balance | ' | ' | 0.5 | ' | ' |
Effect of exchange rate changes | ' | ' | 0 | ' | ' |
Goodwill, Ending Balance | 0.5 | ' | 0.5 | ' | ' |
South America [Member] | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Goodwill, Beginning Balance | ' | ' | 12.2 | ' | ' |
Effect of exchange rate changes | ' | ' | -1.7 | ' | ' |
Goodwill, Ending Balance | 10.5 | ' | 10.5 | ' | ' |
Commercial Products [Member] | ' | ' | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' | ' | ' |
Goodwill, Beginning Balance | ' | ' | 16 | ' | ' |
Effect of exchange rate changes | ' | ' | 1.2 | ' | ' |
Goodwill, Ending Balance | $17.20 | ' | $17.20 | ' | ' |
Product_Warranties_Details
Product Warranties (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the warranty liability [Roll Forward] | ' | ' | ' | ' |
Balance, beginning of period | $9.30 | $12.30 | $12.60 | $11.40 |
Accruals for warranties issued | 1.9 | 1.2 | 4.3 | 4 |
Accruals related to pre-existing warranties | 0.9 | 0.3 | 3.4 | 1.5 |
Settlements | -1.6 | -1.6 | -9.8 | -4.4 |
Effect of exchange rate changes | 0.1 | 0 | 0.1 | -0.3 |
Balance, end of period | $10.60 | $12.20 | $10.60 | $12.20 |
Indebtedness_Details
Indebtedness (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 | Mar. 31, 2013 |
Debt Instrument [Line Items] | ' | ' | ' |
Short-term debt | ' | $35.90 | $30.60 |
Long-term debt, fair value | ' | 139 | 139 |
Line of Credit Facility [Line Items] | ' | ' | ' |
Available for future borrowings | ' | 213 | ' |
Domestic Revolving Credit Facility [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Amount outstanding | ' | 0 | 0 |
Maximum borrowing capacity | 145 | 175 | ' |
Expiration date | 31-Aug-14 | 31-Aug-18 | ' |
Available for future borrowings | ' | 167 | ' |
Variable rate basis | ' | 'LIBOR | ' |
Domestic Revolving Credit Facility [Member] | Minimum [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | 1.25% | ' |
Domestic Revolving Credit Facility [Member] | Maximum [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Basis spread on variable rate (in hundredths) | ' | 2.25% | ' |
Foreign Credit Facility [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Available for future borrowings | ' | 46 | ' |
Domestic Letters of Credit [Member] | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' |
Letters of credit outstanding | ' | 8 | ' |
6.8% Senior Notes [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Long-term debt | ' | $125 | ' |
Stated interest rate (in hundredths) | ' | 6.80% | ' |
Derivatives_Instruments_Detail
Derivatives Instruments (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2013 |
In Millions, unless otherwise specified | ||
Commodity Derivatives [Member] | Other current assets [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Asset, Fair Value, Net, | $0.10 | $0 |
Commodity Derivatives [Member] | Other current liabilities [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Liability, Fair Value, Net | 0.2 | 1.2 |
Commodity Derivatives [Member] | Other noncurrent liabilities [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Liability, Fair Value, Net | 0.1 | 0.1 |
Foreign Exchange Contract [Member] | Other current liabilities [Member] | ' | ' |
Derivative, Fair Value, Net [Abstract] | ' | ' |
Derivative Liability, Fair Value, Net | $0 | $0.10 |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities, (Gain) Loss by Hedging Relationship, by Income Statement Location, (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Amount of Loss Recognized in AOCI | ' | ' | $0.20 | $0.70 |
Total Loss (Gain) Recognized in Earnings (Loss) | 0.1 | 0.9 | 0.1 | 3.5 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Loss Reclassified from AOCI into Earnings (Loss) | 0.1 | 0.7 | 0.3 | 2.4 |
Foreign Exchange Contract [Member] | ' | ' | ' | ' |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Amount of Loss Recognized in AOCI | ' | ' | 0 | 0 |
Commodity Derivatives [Member] | ' | ' | ' | ' |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Amount of Loss Recognized in AOCI | ' | ' | 0.2 | 0.7 |
Cost of Sales [Member] | Commodity Derivatives [Member] | ' | ' | ' | ' |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Total Loss (Gain) Recognized in Earnings (Loss) | 0.2 | 1.1 | 0.4 | 3.8 |
Cost of Sales [Member] | Commodity Derivatives [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Loss Reclassified from AOCI into Earnings (Loss) | 0.1 | 0.7 | 0.3 | 2.4 |
Other expense - net [Member] | Foreign Exchange Contract [Member] | ' | ' | ' | ' |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Total Loss (Gain) Recognized in Earnings (Loss) | -0.1 | -0.2 | -0.3 | -0.3 |
Other expense - net [Member] | Foreign Exchange Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' |
Derivative Instruments, (Gain) Loss [Line Items] | ' | ' | ' | ' |
Loss Reclassified from AOCI into Earnings (Loss) | $0 | $0 | $0 | $0 |
Contingencies_and_Litigation_D
Contingencies and Litigation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2013 |
Site | |||
Environmental Matters [Abstract] | ' | ' | ' |
Reserves for these environmental matters | $5 | $5 | $5.20 |
Number of sites remediation considered for potentially responsible party | ' | 3 | ' |
European value added tax [Abstract] | ' | ' | ' |
Value added tax payable | 2.8 | 2.8 | 4.4 |
Reduction to selling general and administrative expense | ($1.10) | ($1.60) | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | ($119.80) | ' | ($128.40) | ' | ||
Other comprehensive income before reclassifications | 0.9 | ' | 6.8 | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Total other comprehensive income | 2.3 | 5.2 | 10.9 | -5.2 | ||
Ending balance | -117.5 | ' | -117.5 | ' | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Amortization of unrecognized net loss | 1.6 | [1] | ' | 4.7 | [1] | ' |
Amortization of unrecognized prior service credit | -0.3 | [1] | ' | -0.9 | [1] | ' |
Commodity derivatives | 0.1 | [2] | ' | 0.3 | [2] | ' |
Foreign Currency Translation [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | 23.7 | ' | 17.8 | ' | ||
Other comprehensive income before reclassifications | 0.9 | ' | 6.8 | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Total other comprehensive income | 0.9 | ' | 6.8 | ' | ||
Ending balance | 24.6 | ' | 24.6 | ' | ||
Foreign Currency Translation [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Amortization of unrecognized net loss | 0 | [1] | ' | 0 | [1] | ' |
Amortization of unrecognized prior service credit | 0 | [1] | ' | 0 | [1] | ' |
Commodity derivatives | 0 | [2] | ' | 0 | [2] | ' |
Cash Flow Hedges [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | -0.9 | ' | -1.1 | ' | ||
Other comprehensive income before reclassifications | 0 | ' | 0 | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Total other comprehensive income | 0.1 | ' | 0.3 | ' | ||
Ending balance | -0.8 | ' | -0.8 | ' | ||
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Amortization of unrecognized net loss | 0 | [1] | ' | 0 | [1] | ' |
Amortization of unrecognized prior service credit | 0 | [1] | ' | 0 | [1] | ' |
Commodity derivatives | 0.1 | [2] | ' | 0.3 | [2] | ' |
Defined Benefit Plans [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | -142.6 | ' | -145.1 | ' | ||
Other comprehensive income before reclassifications | 0 | ' | 0 | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Total other comprehensive income | 1.3 | ' | 3.8 | ' | ||
Ending balance | -141.3 | ' | -141.3 | ' | ||
Defined Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ||
Reclassifications [Abstract] | ' | ' | ' | ' | ||
Amortization of unrecognized net loss | 1.6 | [1] | ' | 4.7 | [1] | ' |
Amortization of unrecognized prior service credit | -0.3 | [1] | ' | -0.9 | [1] | ' |
Commodity derivatives | $0 | [2] | ' | $0 | [2] | ' |
[1] | Amounts are included in the calculation of net periodic benefit cost. See Note 5 for additional information. | |||||
[2] | Reclassifications for commodity derivatives are included in cost of sales. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | $347 | $326.10 | $1,087 | $1,016.40 | ' | |||||
Gross profit | 56.8 | 48.2 | 175.9 | 152.5 | ' | |||||
Gross profit as % of sales (in hundredths) | 16.40% | 14.80% | 16.20% | 15.00% | ' | |||||
Operating income (loss) | 0.9 | -3.8 | 30.5 | -6.7 | ' | |||||
Total assets | 889.5 | ' | 889.5 | ' | 818.8 | |||||
Operating income effect between the Corporate and Europe segment for modification in internal financial reporting changes | ' | 2.2 | ' | 6.8 | ' | |||||
North America [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | 128.9 | 128.2 | 423.6 | 425.2 | ' | |||||
Gross profit | 20 | 17.3 | 70.5 | 59.4 | ' | |||||
Gross profit as % of sales (in hundredths) | 15.50% | 13.50% | 16.60% | 14.00% | ' | |||||
Operating income (loss) | 8.7 | 8.2 | 34.7 | 28.9 | ' | |||||
Total assets | 202.3 | ' | 202.3 | ' | 218.3 | |||||
Europe [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | 140.5 | 115.7 | 425.6 | 359.9 | ' | |||||
Gross profit | 17.2 | 12.1 | 51.2 | 44.7 | ' | |||||
Gross profit as % of sales (in hundredths) | 12.20% | 10.40% | 12.00% | 12.40% | ' | |||||
Operating income (loss) | -5.3 | [1] | -7.9 | [1] | 6 | [1] | -22.6 | [1] | ' | |
Total assets | 354.8 | ' | 354.8 | ' | 332.2 | |||||
South America [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | 27.4 | 31.7 | 93.6 | 97.1 | ' | |||||
Gross profit | 4.5 | 5.6 | 16.4 | 16.1 | ' | |||||
Gross profit as % of sales (in hundredths) | 16.30% | 17.50% | 17.50% | 16.50% | ' | |||||
Operating income (loss) | 1.1 | 2.6 | 6.2 | 7.6 | ' | |||||
Total assets | 75.9 | ' | 75.9 | ' | 91.8 | |||||
Asia [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | 17.1 | 13.2 | 51.6 | 42.8 | ' | |||||
Gross profit | 2 | 0 | 6.1 | 0.5 | ' | |||||
Gross profit as % of sales (in hundredths) | 11.70% | 0.20% | 11.80% | 1.10% | ' | |||||
Operating income (loss) | -0.6 | -2.5 | -2 | -7.1 | ' | |||||
Total assets | 92.9 | ' | 92.9 | ' | 91.3 | |||||
Commercial Products [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | 37 | 41.3 | 104.2 | 105.3 | ' | |||||
Gross profit | 13.1 | 13.1 | 31.4 | 31.1 | ' | |||||
Gross profit as % of sales (in hundredths) | 35.50% | 31.60% | 30.10% | 29.50% | ' | |||||
Operating income (loss) | 5.3 | 4.7 | 7.5 | 8.3 | ' | |||||
Total assets | 133.7 | [2] | ' | 133.7 | [2] | ' | 73.7 | [2] | ||
Receivables and cash advance | 50 | ' | 50 | ' | ' | |||||
Corporate and eliminations [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | -3.9 | -4 | -11.6 | -13.9 | ' | |||||
Gross profit | 0 | 0.1 | 0.3 | 0.7 | ' | |||||
Gross profit as % of sales (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% | ' | |||||
Operating income (loss) | -8.3 | [1] | -8.9 | [1] | -21.9 | [1] | -21.8 | [1] | ' | |
Total assets | 29.9 | ' | 29.9 | ' | 11.5 | |||||
Segment total [Member] | ' | ' | ' | ' | ' | |||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | ' | ' | |||||
Net sales | 350.9 | 330.1 | 1,098.60 | 1,030.30 | ' | |||||
Gross profit | 56.8 | 48.1 | 175.6 | 151.8 | ' | |||||
Gross profit as % of sales (in hundredths) | 16.20% | 14.60% | 16.00% | 14.70% | ' | |||||
Operating income (loss) | $9.20 | $5.10 | $52.40 | $15.10 | ' | |||||
[1] | Segment operating income for fiscal 2013 has been recast to conform to the fiscal 2014 presentation. The Company has modified its internal financial reporting of intercompany charges for research and development and intercompany royalties between Corporate and the Europe segment. For the three and nine months ended December 31, 2012, the impact was $2.2 million and $6.8 million, respectively. There was no impact on the total Company financial results. | |||||||||
[2] | Total assets within the Commercial Products segment included receivables and cash advances from the Companybs insurance provider related to the Airedale fire, which totaled $50.0 million as of December 31, 2013. See Note 2 for additional information. |