Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Jun. 30, 2014 | Jul. 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 | ' | 47,879,525 |
Document Fiscal Year Focus | '2015 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Jun-14 | ' |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | ' | ' |
Net sales | $392.50 | $375.80 |
Cost of sales | 324.8 | 313.9 |
Gross profit | 67.7 | 61.9 |
Selling, general and administrative expenses | 42.8 | 42.4 |
Restructuring expenses | 0.8 | 0.5 |
Operating income | 24.1 | 19 |
Interest expense | -3.1 | -3 |
Other expense - net | -0.2 | -0.5 |
Earnings before income taxes | 20.8 | 15.5 |
Provision for income taxes | -6.7 | -4.9 |
Net earnings | 14.1 | 10.6 |
Net earnings attributable to noncontrolling interest | -0.4 | -0.6 |
Net earnings attributable to Modine | $13.70 | $10 |
Net earnings per share attributable to Modine shareholders: | ' | ' |
Basic (in dollars per share) | $0.29 | $0.21 |
Diluted (in dollars per share) | $0.28 | $0.21 |
Weighted average shares outstanding: | ' | ' |
Basic (in shares) | 47 | 46.7 |
Diluted (in shares) | 47.7 | 47.3 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ' | ' |
Net earnings | $14.10 | $10.60 |
Other comprehensive income (loss): | ' | ' |
Foreign currency translation | 1.7 | -4.3 |
Defined benefit plans, net of income taxes of $0.5 and $0 | 0.9 | 1.3 |
Cash flow hedges, net of income taxes of $0 | 0 | 0.1 |
Total other comprehensive income (loss) | 2.6 | -2.9 |
Comprehensive income | 16.7 | 7.7 |
Comprehensive income attributable to noncontrolling interest | -0.6 | -0.6 |
Comprehensive income attributable to Modine | $16.10 | $7.10 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Other comprehensive income (loss): | ' | ' |
Defined benefit plans, tax | $0.50 | $0 |
Cash flow hedges, tax | $0 | $0 |
CONSOLIDATED_BALANCE_SHEETS_Un
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Cash and cash equivalents | $74 | $87.20 |
Trade accounts receivable - net | 219.7 | 221.1 |
Inventories | 127.3 | 116.8 |
Deferred income taxes | 12.6 | 13 |
Other current assets | 85.9 | 60.7 |
Total current assets | 519.5 | 498.8 |
Property, plant and equipment - net | 360.6 | 359.6 |
Intangible assets - net | 12.2 | 12.4 |
Goodwill | 29.4 | 28.7 |
Deferred income taxes | 96 | 98.6 |
Other noncurrent assets | 29.4 | 34.2 |
Total assets | 1,047.10 | 1,032.30 |
Liabilities: | ' | ' |
Short-term debt | 30.6 | 32.4 |
Long-term debt - current portion | 0.6 | 0.8 |
Accounts payable | 162.9 | 171.1 |
Accrued compensation and employee benefits | 66.1 | 70.8 |
Other current liabilities | 100.8 | 82.1 |
Total current liabilities | 361 | 357.2 |
Long-term debt | 131.1 | 131.2 |
Deferred income taxes | 7.3 | 7.3 |
Pensions | 78.2 | 81 |
Other noncurrent liabilities | 22.9 | 27 |
Total liabilities | 600.5 | 603.7 |
Commitments and contingencies (see Note 15) | ' | ' |
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 48.6 million and 48.3 million shares | 30.4 | 30.2 |
Additional paid-in capital | 177.7 | 175.7 |
Retained earnings | 351.7 | 338 |
Accumulated other comprehensive loss | -101.5 | -103.9 |
Treasury stock, at cost, 0.7 million and 0.7 million shares | -16.1 | -15.2 |
Total Modine shareholders' equity | 442.2 | 424.8 |
Noncontrolling interest | 4.4 | 3.8 |
Total equity | 446.6 | 428.6 |
Total liabilities and equity | $1,047.10 | $1,032.30 |
CONSOLIDATED_BALANCE_SHEETS_Un1
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
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) | 48.6 | 48.3 |
Treasury stock at cost (in shares) | 0.7 | 0.7 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $14.10 | $10.60 |
Adjustments to reconcile net earnings with net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 13.3 | 16.1 |
Other - net | 4.3 | 1.6 |
Net changes in operating assets and liabilities | -29.2 | -12.4 |
Net cash provided by operating activities | 2.5 | 15.9 |
Cash flows from investing activities: | ' | ' |
Expenditures for property, plant and equipment | -12.4 | -10.2 |
Costs to replace building and equipment damaged in Airedale fire | -1.4 | 0 |
Other - net | -0.2 | 0.1 |
Net cash used for investing activities | -14 | -10.1 |
Cash flows from financing activities: | ' | ' |
Borrowings of debt | 16.9 | 76.2 |
Repayments of debt | -19.2 | -73.1 |
Dividend paid to noncontrolling interest | 0 | -0.5 |
Other - net | 0.3 | -1.2 |
Net cash (used for) provided by financing activities | -2 | 1.4 |
Effect of exchange rate changes on cash | 0.3 | -0.1 |
Net (decrease) increase in cash and cash equivalents | -13.2 | 7.1 |
Cash and cash equivalents - beginning of period | 87.2 | 23.8 |
Cash and cash equivalents - end of period | $74 | $30.90 |
General
General | 3 Months Ended |
Jun. 30, 2014 | |
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, 2014. 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 three months of fiscal 2015 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, 2014. | |
New revenue recognition accounting guidance: In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance that outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principal of the new guidance is that companies are to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements intended to provide users of financial statements with comprehensive information about revenue arising from contracts with customers. This new guidance is effective for the Company’s first quarter of fiscal 2018 and early application is not permitted. The Company is currently evaluating the impact the new guidance will have on its consolidated financial statements. |
Airedale_Facility_Fire
Airedale Facility Fire | 3 Months Ended |
Jun. 30, 2014 | |
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. The Company reports Airedale’s financial results within the Building HVAC segment (previously known as Commercial Products). 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 at the Rawdon site; however, the Company transferred its operations to temporary facilities and is planning to rebuild the leased facility. The Company expects construction of the new facility to begin during the second quarter of fiscal 2015. | |
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. During the first quarter of fiscal 2015, the Company recorded a $2.6 million gain from business interruption insurance within selling, general, and administrative expenses for fiscal 2014 lost profits. Since the date of the fire, the Company received cash advances of $37.6 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 $13.2 million. The Company has recorded these losses and costs, which totaled $19.3 million, in the same statement of operations line as the related insurance recovery during the period in which they were incurred. | |
The terms of the Rawdon lease agreement obligate the Company to rebuild the damaged facility. Through June 30, 2014, the Company paid reconstruction costs of $1.8 million, primarily related to architectural plans and fees. The Company estimates the total cost of reconstruction to be approximately $59.0 million. The Company records costs incurred related to the reconstruction on the consolidated balance sheet as an asset, and also records a liability for the same amount. As of June 30, 2014, the liability to rebuild the facility was $59.0 million ($55.5 million within other current liabilities and $3.5 million within other noncurrent liabilities) and the total receivable from the Company’s insurance provider was $43.3 million ($41.6 million within other current assets and $1.7 million within other noncurrent assets). The $43.3 million receivable is comprised of $59.0 million of estimated rebuild costs, $19.3 million of losses and costs incurred, and $2.6 million for fiscal 2014 lost profits, partially offset by $37.6 million of insurance advances. As of March 31, 2014, the liability to rebuild the facility was $45.0 million ($37.0 million within other current liabilities and $8.0 million within other noncurrent liabilities) and the receivable from the Company’s insurance provider was $25.4 million ($18.4 million within other current assets and $7.0 million within other noncurrent assets). The Company increased its estimate of the cost to rebuild the Rawdon facility and the associated insurance receivable by $14.0 million ($59.0 million at June 30, 2014 from $45.0 million at March 31, 2014) due primarily to an increase in the estimated costs to prepare the site’s foundation based on results of recent soil and bedrock testing. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||
Jun. 30, 2014 | |||
Fair Value Measurements [Abstract] | ' | ||
Fair Value Measurements | ' | ||
Note 3: 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 as 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 as Level 2. If quoted or observable market prices are not available, fair value is based upon valuation models that use, where possible, market-based data such as interest rates, yield curves or currency rates. These measurements are classified as Level 3. | |||
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 Company holds trading securities in a deferred compensation trust to fund obligations under Modine’s non-qualified deferred compensation plan. The securities’ fair values, which are recorded as other noncurrent assets, are determined based on quoted prices from active markets and classified within Level 1 of the valuation hierarchy. The Company’s deferred compensation obligations, which are recorded as other noncurrent liabilities, are recorded at the fair values of the investments held by the trust. The fair values of the Company’s trading securities and deferred compensation obligations each totaled $2.8 million and $2.6 million at June 30, 2014 and March 31, 2014, respectively. The fair value of the Company’s debt is disclosed in Note 14. |
Pensions
Pensions | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Pensions [Abstract] | ' | ||||||||
Pensions | ' | ||||||||
Note 4: Pensions | |||||||||
During the three months ended June 30, 2014 and 2013, the Company contributed $1.8 million and $1.6 million, respectively, to its U.S. pension plans. Pension cost included the following components: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Service cost | $ | 0.1 | $ | 0.1 | |||||
Interest cost | 3.3 | 3.2 | |||||||
Expected return on plan assets | (4.2 | ) | (3.9 | ) | |||||
Amortization of unrecognized net loss | 1.4 | 1.6 | |||||||
Net periodic benefit cost | $ | 0.6 | $ | 1 |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||
Note 5: Stock-Based Compensation | |||||||||||||||||
The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive compensation program for officers and executives that consists of restricted stock and stock option 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 $1.0 million and $0.9 million for the three months ended June 30, 2014 and 2013, respectively. The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2015 is based upon a target three-year average consolidated return on average capital employed and three-year average revenue growth. | |||||||||||||||||
The fair market value of stock-based compensation awards granted during the three months ended June 30, 2014 and 2013 were as follows: | |||||||||||||||||
Three months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Shares | Per Award | Shares | Per Award | ||||||||||||||
Stock options | 0.1 | $ | 10.21 | 0.2 | $ | 7.76 | |||||||||||
Restricted stock - retention | 0.2 | $ | 14.94 | 0.3 | $ | 10.4 | |||||||||||
Restricted stock - performance based | 0.2 | $ | 14.94 | 0.2 | $ | 10.4 | |||||||||||
The following assumptions were used in determining the fair value for stock options: | |||||||||||||||||
Three months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life of awards in years | 6.3 | 6.3 | |||||||||||||||
Risk-free interest rate | 2.1 | % | 1.3 | % | |||||||||||||
Expected volatility of the Company's stock | 76.1 | % | 88.7 | % | |||||||||||||
Expected dividend yield on the Company's stock | 0 | % | 0 | % | |||||||||||||
As of June 30, 2014, 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 | ||||||||||||||||
Compensation | Remaining Service | ||||||||||||||||
Cost | Period in Years | ||||||||||||||||
Stock options | $ | 2.4 | 3.3 | ||||||||||||||
Restricted stock - retention | 6.4 | 3.1 | |||||||||||||||
Restricted stock - performance based | 3.9 | 2.4 | |||||||||||||||
Total | $ | 12.7 | 2.9 |
Restructuring_Expenses
Restructuring Expenses | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Restructuring Expenses [Abstract] | ' | ||||||||
Restructuring Expenses | ' | ||||||||
Note 6: Restructuring Expenses | |||||||||
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 upon Modine’s 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 products markets, while improving gross margin and return on average capital employed. | |||||||||
Since commencement of the Europe segment restructuring program, the Company has recorded $28.6 million of employee severance costs, primarily related to headcount reductions at two manufacturing facilities and the segment headquarters, $26.1 million of asset impairment charges, and $7.9 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 June 30, | |||||||||
2014 | 2013 | ||||||||
Employee severance and related benefits | $ | - | $ | 0.3 | |||||
Accelerated depreciation | - | 2.2 | |||||||
Other repositioning costs | 0.3 | 0.2 | |||||||
Total restructuring and repositioning expenses | $ | 0.3 | $ | 2.7 | |||||
During the three months ended June 30, 2014 and 2013, $0.3 million and $0.5 million, respectively, of restructuring and repositioning costs were recorded as restructuring expenses in the consolidated statement of operations. During the three months ended June 30, 2013, the Company recorded $2.2 million of restructuring and repositioning expenses within cost of sales. | |||||||||
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 June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 18.3 | $ | 11.6 | |||||
Additions | - | 0.3 | |||||||
Payments | (1.5 | ) | (0.6 | ) | |||||
Effect of exchange rate changes | (0.2 | ) | 0.1 | ||||||
Ending balance | $ | 16.6 | $ | 11.4 | |||||
During the three months ended June 30, 2014, the Company recorded $0.5 million of restructuring expenses in its South America segment related to employee severance costs. The headcount reductions were in response to the recent economic slowdown in Brazil and reflect the Company’s focus on maintaining profitability in the segment despite lower sales volume. |
Other_Income_and_Expense
Other Income and Expense | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Income and Expense [Abstract] | ' | ||||||||
Other Income and Expense | ' | ||||||||
Note 7: Other Income and Expense | |||||||||
Other income and expense consisted of the following: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Equity in earnings of non-consolidated affiliate | $ | 0.2 | $ | 0.2 | |||||
Interest income | 0.1 | 0.1 | |||||||
Foreign currency transactions | (0.5 | ) | (0.8 | ) | |||||
Total other expense - net | $ | (0.2 | ) | $ | (0.5 | ) | |||
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 intercompany transactions denominated in a foreign currency, along with unrealized gains and losses on foreign currency exchange contracts. |
Income_Taxes
Income Taxes | 3 Months Ended |
Jun. 30, 2014 | |
Income Taxes [Abstract] | ' |
Income Taxes | ' |
Note 8: Income Taxes | |
For the three months ended June 30, 2014 and 2013, the Company’s effective income tax rate was 32.2 percent and 31.6 percent, respectively. | |
The most significant factors impacting changes in the effective tax rate for the three months ended June 30, 2014 as compared to the prior year period were increases in the valuation allowance for certain foreign jurisdictions for which no benefit is recognized and the changing mix of foreign and domestic earnings. At June 30, 2014, the Company continued to record a full valuation allowance against its net deferred tax assets in certain foreign jurisdictions ($46.3 million) and a valuation allowance against certain U.S. deferred tax assets ($15.3 million), as it is more likely than not that these assets will not be realized based on historical financial results. 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. | |
Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with the 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. 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 because the Company anticipates net operating losses for the full fiscal year in these jurisdictions. | |
The Company files income tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. At June 30, 2014, the Company was not under audit nor was it notified of any tax examinations covering open periods in any taxing jurisdiction. The Company does not anticipate a significant change in unrecognized tax benefits during the next twelve months. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share | ' | ||||||||
Note 9: Earnings Per Share | |||||||||
The components of basic and diluted earnings per share were as follows: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Net earnings attributable to Modine | $ | 13.7 | $ | 10 | |||||
Less: Undistributed earnings attributable to unvested shares | (0.2 | ) | (0.1 | ) | |||||
Net earnings available to Modine shareholders | $ | 13.5 | $ | 9.9 | |||||
Weighted average shares outstanding - basic | 47 | 46.7 | |||||||
Effect of dilutive securities | 0.7 | 0.6 | |||||||
Weighted average shares outstanding - diluted | 47.7 | 47.3 | |||||||
Earnings per share: | |||||||||
Net earnings per share - basic | $ | 0.29 | $ | 0.21 | |||||
Net earnings per share - diluted | $ | 0.28 | $ | 0.21 | |||||
For the three months ended June 30, 2014 and 2013, the calculation of diluted earnings per share excluded 0.6 million and 1.0 million stock options, respectively, because they were anti-dilutive. |
Inventories
Inventories | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Note 10: Inventories | |||||||||
Inventories consisted of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Raw materials and work in process | $ | 95.9 | $ | 89.2 | |||||
Finished goods | 31.4 | 27.6 | |||||||
Total inventories | $ | 127.3 | $ | 116.8 |
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Note 11: Property, Plant and Equipment | |||||||||
Property, plant and equipment consisted of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Gross property, plant and equipment | $ | 1,079.70 | $ | 1,078.60 | |||||
Accumulated depreciation | (719.1 | ) | (719.0 | ) | |||||
Net property, plant and equipment | $ | 360.6 | $ | 359.6 |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||
Note 12: Goodwill and Intangible Assets | |||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | |||||||||||||||||||||||||
South | Building | ||||||||||||||||||||||||
America | Asia | HVAC | Total | ||||||||||||||||||||||
Goodwill, March 31, 2014 | $ | 10.9 | $ | 0.5 | $ | 17.3 | $ | 28.7 | |||||||||||||||||
Effect of exchange rate changes | 0.3 | - | 0.4 | 0.7 | |||||||||||||||||||||
Goodwill, June 30, 2014 | $ | 11.2 | $ | 0.5 | $ | 17.7 | $ | 29.4 | |||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Intangible | Carrying | Accumulated | Intangible | ||||||||||||||||||||
Value | Amortization | Assets | Value | Amortization | Assets | ||||||||||||||||||||
Tradenames | $ | 10.3 | $ | (5.9 | ) | $ | 4.4 | $ | 10.1 | $ | (5.7 | ) | $ | 4.4 | |||||||||||
Acquired technology | 5.9 | (0.4 | ) | 5.5 | 5.8 | (0.2 | ) | 5.6 | |||||||||||||||||
Customer relationships | 2.4 | (0.1 | ) | 2.3 | 2.4 | - | 2.4 | ||||||||||||||||||
Total intangible assets | $ | 18.6 | $ | (6.4 | ) | $ | 12.2 | $ | 18.3 | $ | (5.9 | ) | $ | 12.4 | |||||||||||
Amortization expense for the three months ended June 30, 2014 and 2013 was $0.4 million and $0.2 million, respectively. Estimated future amortization expense is as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Fiscal Year | Expense | ||||||||||||||||||||||||
Remainder of 2015 | $ | 1.2 | |||||||||||||||||||||||
2016 | 1.7 | ||||||||||||||||||||||||
2017 | 1.8 | ||||||||||||||||||||||||
2018 | 1.8 | ||||||||||||||||||||||||
2019 | 1.6 | ||||||||||||||||||||||||
2020 & Beyond | 4.1 |
Product_Warranties
Product Warranties | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Product Warranties [Abstract] | ' | ||||||||
Product Warranties | ' | ||||||||
Note 13: Product Warranties | |||||||||
Changes in accrued warranty costs were as follows: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 14 | $ | 12.6 | |||||
Accruals for warranties issued | 1.6 | 1.4 | |||||||
Accruals related to pre-existing warranties | 0.6 | 2.5 | |||||||
Settlements | (2.4 | ) | (4.0 | ) | |||||
Effect of exchange rate changes | 0.1 | (0.2 | ) | ||||||
Ending balance | $ | 13.9 | $ | 12.3 |
Indebtedness
Indebtedness | 3 Months Ended |
Jun. 30, 2014 | |
Indebtedness [Abstract] | ' |
Indebtedness | ' |
Note 14: Indebtedness | |
The Company’s long-term debt includes $125.0 million of 6.8 percent Senior Notes. The Company also maintains a $175.0 million domestic revolving credit facility, which expires in August 2018. At June 30, 2014 and March 31, 2014, the Company had no borrowings outstanding under its revolving credit facility. At June 30, 2014, domestic letters of credit totaled $9.0 million, resulting in available borrowings under the Company’s domestic revolving credit facility of $166.0 million. | |
The Company also maintains credit agreements for its foreign subsidiaries, with outstanding short-term borrowings at June 30, 2014 and March 31, 2014 of $30.6 million and $32.4 million, respectively. At June 30, 2014, the Company’s foreign unused lines of credit totaled $48.0 million. In aggregate, the Company had total available lines of credit of $214.0 million at June 30, 2014. | |
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. The Company was in compliance with its debt covenants as of June 30, 2014. | |
The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. At June 30, 2014 and March 31, 2014, 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 $141.0 million and $140.0 million, respectively. The fair value of the Senior Notes is categorized as Level 2 within the fair value hierarchy. Refer to Note 3 for the definition of a Level 2 fair value measurement. |
Contingencies_and_Litigation
Contingencies and Litigation | 3 Months Ended |
Jun. 30, 2014 | |
Contingencies and Litigation [Abstract] | ' |
Contingencies and Litigation | ' |
Note 15: 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 $5.1 million at both June 30, 2014 and March 31, 2014. As additional information becomes available, the Company will assess any potential liability related to these matters and revise the estimated accrual, 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. | |
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 | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||
Note 16: Accumulated Other Comprehensive Loss | |||||||||||||||||
Changes in accumulated other comprehensive loss were as follows: | |||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency | Hedges | Benefit | |||||||||||||||
Translation | Plans | ||||||||||||||||
Balance, March 31, 2014 | $ | 27.3 | $ | - | $ | (131.2 | ) | $ | (103.9 | ) | |||||||
Other comprehensive income before reclassifications | 1.5 | - | - | 1.5 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 1.4 | 1.4 | |||||||||||||
Income taxes | - | - | (0.5 | ) | (0.5 | ) | |||||||||||
Total other comprehensive income | 1.5 | - | 0.9 | 2.4 | |||||||||||||
Balance, June 30, 2014 | $ | 28.8 | $ | - | $ | (130.3 | ) | $ | (101.5 | ) | |||||||
Foreign | Defined | ||||||||||||||||
Currency | Cash Flow | Benefit | |||||||||||||||
Translation | Hedges | Plans | Total | ||||||||||||||
Balance, March 31, 2013 | $ | 17.8 | $ | (1.1 | ) | $ | (145.1 | ) | $ | (128.4 | ) | ||||||
Other comprehensive income before reclassifications | (4.3 | ) | - | - | (4.3 | ) | |||||||||||
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 (loss) income | (4.3 | ) | 0.1 | 1.3 | (2.9 | ) | |||||||||||
Balance, June 30, 2013 | $ | 13.5 | $ | (1.0 | ) | $ | (143.8 | ) | $ | (131.3 | ) | ||||||
(a) Amounts are included in the calculation of net periodic benefit cost. See Note 4 for additional information. | |||||||||||||||||
(b) Reclassifications for commodity derivatives are included in cost of sales. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Note 17: Segment Information | |||||||||||||||||
During the first quarter of fiscal 2015, the Company changed the name of its Commercial Products segment to Building HVAC in order to better reflect the nature of the segment’s product lines. There were no changes to the operations or reported financial results of the segment as a result. The following is a summary of net sales, gross profit, operating income, and total assets by segment: | |||||||||||||||||
Three months ended June 30, | |||||||||||||||||
Net sales: | 2014 | 2013 | |||||||||||||||
North America | $ | 151.7 | $ | 148.7 | |||||||||||||
Europe | 158.6 | 146.2 | |||||||||||||||
South America | 25.2 | 34.4 | |||||||||||||||
Asia | 20.8 | 18.3 | |||||||||||||||
Building HVAC | 40.7 | 32.4 | |||||||||||||||
Segment net sales | 397 | 380 | |||||||||||||||
Corporate and eliminations | (4.5 | ) | (4.2 | ) | |||||||||||||
Net sales | $ | 392.5 | $ | 375.8 | |||||||||||||
Three months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross profit: | $'s | % of sales | $'s | % of sales | |||||||||||||
North America | $ | 28.1 | 18.5 | % | $ | 25.5 | 17.2 | % | |||||||||
Europe | 22.2 | 14 | % | 19.3 | 13.2 | % | |||||||||||
South America | 3.5 | 13.8 | % | 6.1 | 17.8 | % | |||||||||||
Asia | 3.6 | 17.2 | % | 2.3 | 12.8 | % | |||||||||||
Building HVAC | 9.9 | 24.3 | % | 8.5 | 26.2 | % | |||||||||||
Segment gross profit | 67.3 | 17 | % | 61.7 | 16.2 | % | |||||||||||
Corporate and eliminations | 0.4 | - | 0.2 | - | |||||||||||||
Gross profit | $ | 67.7 | 17.2 | % | $ | 61.9 | 16.5 | % | |||||||||
Three months ended June 30, | |||||||||||||||||
Operating income: | 2014 | 2013 | |||||||||||||||
North America | $ | 16.1 | $ | 14.3 | |||||||||||||
Europe | 10.4 | 8 | |||||||||||||||
South America | (0.2 | ) | 2.6 | ||||||||||||||
Asia | 0.9 | (0.3 | ) | ||||||||||||||
Building HVAC | 3.2 | 1 | |||||||||||||||
Segment operating income | 30.4 | 25.6 | |||||||||||||||
Corporate and eliminations | (6.3 | ) | (6.6 | ) | |||||||||||||
Operating income | $ | 24.1 | $ | 19 | |||||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||||||||
Total assets: | |||||||||||||||||
North America | $ | 230 | $ | 218.1 | |||||||||||||
Europe | 364 | 367.9 | |||||||||||||||
South America | 79.4 | 80.1 | |||||||||||||||
Asia | 98 | 92.8 | |||||||||||||||
Building HVAC | 152.3 | 132.7 | |||||||||||||||
Corporate and eliminations | 123.4 | 140.7 | |||||||||||||||
Total assets | $ | 1,047.10 | $ | 1,032.30 |
Pensions_Tables
Pensions (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Pensions [Abstract] | ' | ||||||||
Pensions | ' | ||||||||
During the three months ended June 30, 2014 and 2013, the Company contributed $1.8 million and $1.6 million, respectively, to its U.S. pension plans. Pension cost included the following components: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Service cost | $ | 0.1 | $ | 0.1 | |||||
Interest cost | 3.3 | 3.2 | |||||||
Expected return on plan assets | (4.2 | ) | (3.9 | ) | |||||
Amortization of unrecognized net loss | 1.4 | 1.6 | |||||||
Net periodic benefit cost | $ | 0.6 | $ | 1 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Stock-Based Compensation [Abstract] | ' | ||||||||||||||||
Fair market value of stock-based compensation awards | ' | ||||||||||||||||
The fair market value of stock-based compensation awards granted during the three months ended June 30, 2014 and 2013 were as follows: | |||||||||||||||||
Three months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||
Shares | Per Award | Shares | Per Award | ||||||||||||||
Stock options | 0.1 | $ | 10.21 | 0.2 | $ | 7.76 | |||||||||||
Restricted stock - retention | 0.2 | $ | 14.94 | 0.3 | $ | 10.4 | |||||||||||
Restricted stock - performance based | 0.2 | $ | 14.94 | 0.2 | $ | 10.4 | |||||||||||
Assumptions used in determining fair value of options | ' | ||||||||||||||||
The following assumptions were used in determining the fair value for stock options: | |||||||||||||||||
Three months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Expected life of awards in years | 6.3 | 6.3 | |||||||||||||||
Risk-free interest rate | 2.1 | % | 1.3 | % | |||||||||||||
Expected volatility of the Company's stock | 76.1 | % | 88.7 | % | |||||||||||||
Expected dividend yield on the Company's stock | 0 | % | 0 | % | |||||||||||||
Unrecognized compensation cost related to non-vested stock-based compensation awards | ' | ||||||||||||||||
As of June 30, 2014, 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 | ||||||||||||||||
Compensation | Remaining Service | ||||||||||||||||
Cost | Period in Years | ||||||||||||||||
Stock options | $ | 2.4 | 3.3 | ||||||||||||||
Restricted stock - retention | 6.4 | 3.1 | |||||||||||||||
Restricted stock - performance based | 3.9 | 2.4 | |||||||||||||||
Total | $ | 12.7 | 2.9 |
Restructuring_Expenses_Tables
Restructuring Expenses (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Restructuring Expenses [Abstract] | ' | ||||||||
Restructuring costs | ' | ||||||||
Restructuring and repositioning expenses related to the Europe segment restructuring program were as follows: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Employee severance and related benefits | $ | - | $ | 0.3 | |||||
Accelerated depreciation | - | 2.2 | |||||||
Other repositioning costs | 0.3 | 0.2 | |||||||
Total restructuring and repositioning expenses | $ | 0.3 | $ | 2.7 | |||||
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 June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 18.3 | $ | 11.6 | |||||
Additions | - | 0.3 | |||||||
Payments | (1.5 | ) | (0.6 | ) | |||||
Effect of exchange rate changes | (0.2 | ) | 0.1 | ||||||
Ending balance | $ | 16.6 | $ | 11.4 |
Other_Income_and_Expense_Table
Other Income and Expense (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Other Income and Expense [Abstract] | ' | ||||||||
Other income and expense | ' | ||||||||
Other income and expense consisted of the following: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Equity in earnings of non-consolidated affiliate | $ | 0.2 | $ | 0.2 | |||||
Interest income | 0.1 | 0.1 | |||||||
Foreign currency transactions | (0.5 | ) | (0.8 | ) | |||||
Total other expense - net | $ | (0.2 | ) | $ | (0.5 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
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 June 30, | |||||||||
2014 | 2013 | ||||||||
Net earnings attributable to Modine | $ | 13.7 | $ | 10 | |||||
Less: Undistributed earnings attributable to unvested shares | (0.2 | ) | (0.1 | ) | |||||
Net earnings available to Modine shareholders | $ | 13.5 | $ | 9.9 | |||||
Weighted average shares outstanding - basic | 47 | 46.7 | |||||||
Effect of dilutive securities | 0.7 | 0.6 | |||||||
Weighted average shares outstanding - diluted | 47.7 | 47.3 | |||||||
Earnings per share: | |||||||||
Net earnings per share - basic | $ | 0.29 | $ | 0.21 | |||||
Net earnings per share - diluted | $ | 0.28 | $ | 0.21 |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Inventories [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
Inventories consisted of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Raw materials and work in process | $ | 95.9 | $ | 89.2 | |||||
Finished goods | 31.4 | 27.6 | |||||||
Total inventories | $ | 127.3 | $ | 116.8 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment | ' | ||||||||
Property, plant and equipment consisted of the following: | |||||||||
30-Jun-14 | 31-Mar-14 | ||||||||
Gross property, plant and equipment | $ | 1,079.70 | $ | 1,078.60 | |||||
Accumulated depreciation | (719.1 | ) | (719.0 | ) | |||||
Net property, plant and equipment | $ | 360.6 | $ | 359.6 |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Goodwill and Intangible Assets [Abstract] | ' | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill | ' | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill were as follows: | |||||||||||||||||||||||||
South | Building | ||||||||||||||||||||||||
America | Asia | HVAC | Total | ||||||||||||||||||||||
Goodwill, March 31, 2014 | $ | 10.9 | $ | 0.5 | $ | 17.3 | $ | 28.7 | |||||||||||||||||
Effect of exchange rate changes | 0.3 | - | 0.4 | 0.7 | |||||||||||||||||||||
Goodwill, June 30, 2014 | $ | 11.2 | $ | 0.5 | $ | 17.7 | $ | 29.4 | |||||||||||||||||
Intangible assets | ' | ||||||||||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||||||||||||||||
Gross | Net | Gross | Net | ||||||||||||||||||||||
Carrying | Accumulated | Intangible | Carrying | Accumulated | Intangible | ||||||||||||||||||||
Value | Amortization | Assets | Value | Amortization | Assets | ||||||||||||||||||||
Tradenames | $ | 10.3 | $ | (5.9 | ) | $ | 4.4 | $ | 10.1 | $ | (5.7 | ) | $ | 4.4 | |||||||||||
Acquired technology | 5.9 | (0.4 | ) | 5.5 | 5.8 | (0.2 | ) | 5.6 | |||||||||||||||||
Customer relationships | 2.4 | (0.1 | ) | 2.3 | 2.4 | - | 2.4 | ||||||||||||||||||
Total intangible assets | $ | 18.6 | $ | (6.4 | ) | $ | 12.2 | $ | 18.3 | $ | (5.9 | ) | $ | 12.4 | |||||||||||
Total estimated annual amortization expense | ' | ||||||||||||||||||||||||
Amortization expense for the three months ended June 30, 2014 and 2013 was $0.4 million and $0.2 million, respectively. Estimated future amortization expense is as follows: | |||||||||||||||||||||||||
Estimated | |||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Fiscal Year | Expense | ||||||||||||||||||||||||
Remainder of 2015 | $ | 1.2 | |||||||||||||||||||||||
2016 | 1.7 | ||||||||||||||||||||||||
2017 | 1.8 | ||||||||||||||||||||||||
2018 | 1.8 | ||||||||||||||||||||||||
2019 | 1.6 | ||||||||||||||||||||||||
2020 & Beyond | 4.1 |
Product_Warranties_Tables
Product Warranties (Tables) | 3 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Product Warranties [Abstract] | ' | ||||||||
Changes in accrued warranty costs | ' | ||||||||
Changes in accrued warranty costs were as follows: | |||||||||
Three months ended June 30, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 14 | $ | 12.6 | |||||
Accruals for warranties issued | 1.6 | 1.4 | |||||||
Accruals related to pre-existing warranties | 0.6 | 2.5 | |||||||
Settlements | (2.4 | ) | (4.0 | ) | |||||
Effect of exchange rate changes | 0.1 | (0.2 | ) | ||||||
Ending balance | $ | 13.9 | $ | 12.3 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | ||||||||||||||||
Changes in accumulated other comprehensive loss | ' | ||||||||||||||||
Changes in accumulated other comprehensive loss were as follows: | |||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency | Hedges | Benefit | |||||||||||||||
Translation | Plans | ||||||||||||||||
Balance, March 31, 2014 | $ | 27.3 | $ | - | $ | (131.2 | ) | $ | (103.9 | ) | |||||||
Other comprehensive income before reclassifications | 1.5 | - | - | 1.5 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 1.4 | 1.4 | |||||||||||||
Income taxes | - | - | (0.5 | ) | (0.5 | ) | |||||||||||
Total other comprehensive income | 1.5 | - | 0.9 | 2.4 | |||||||||||||
Balance, June 30, 2014 | $ | 28.8 | $ | - | $ | (130.3 | ) | $ | (101.5 | ) | |||||||
Foreign | Defined | ||||||||||||||||
Currency | Cash Flow | Benefit | |||||||||||||||
Translation | Hedges | Plans | Total | ||||||||||||||
Balance, March 31, 2013 | $ | 17.8 | $ | (1.1 | ) | $ | (145.1 | ) | $ | (128.4 | ) | ||||||
Other comprehensive income before reclassifications | (4.3 | ) | - | - | (4.3 | ) | |||||||||||
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 (loss) income | (4.3 | ) | 0.1 | 1.3 | (2.9 | ) | |||||||||||
Balance, June 30, 2013 | $ | 13.5 | $ | (1.0 | ) | $ | (143.8 | ) | $ | (131.3 | ) | ||||||
(a) Amounts are included in the calculation of net periodic benefit cost. See Note 4 for additional information. | |||||||||||||||||
(b) Reclassifications for commodity derivatives are included in cost of sales. |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Segment Information [Abstract] | ' | ||||||||||||||||
Net sales, gross profit, operating income and total assets by segment: | ' | ||||||||||||||||
During the first quarter of fiscal 2015, the Company changed the name of its Commercial Products segment to Building HVAC in order to better reflect the nature of the segment’s product lines. There were no changes to the operations or reported financial results of the segment as a result. The following is a summary of net sales, gross profit, operating income, and total assets by segment: | |||||||||||||||||
Three months ended June 30, | |||||||||||||||||
Net sales: | 2014 | 2013 | |||||||||||||||
North America | $ | 151.7 | $ | 148.7 | |||||||||||||
Europe | 158.6 | 146.2 | |||||||||||||||
South America | 25.2 | 34.4 | |||||||||||||||
Asia | 20.8 | 18.3 | |||||||||||||||
Building HVAC | 40.7 | 32.4 | |||||||||||||||
Segment net sales | 397 | 380 | |||||||||||||||
Corporate and eliminations | (4.5 | ) | (4.2 | ) | |||||||||||||
Net sales | $ | 392.5 | $ | 375.8 | |||||||||||||
Three months ended June 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Gross profit: | $'s | % of sales | $'s | % of sales | |||||||||||||
North America | $ | 28.1 | 18.5 | % | $ | 25.5 | 17.2 | % | |||||||||
Europe | 22.2 | 14 | % | 19.3 | 13.2 | % | |||||||||||
South America | 3.5 | 13.8 | % | 6.1 | 17.8 | % | |||||||||||
Asia | 3.6 | 17.2 | % | 2.3 | 12.8 | % | |||||||||||
Building HVAC | 9.9 | 24.3 | % | 8.5 | 26.2 | % | |||||||||||
Segment gross profit | 67.3 | 17 | % | 61.7 | 16.2 | % | |||||||||||
Corporate and eliminations | 0.4 | - | 0.2 | - | |||||||||||||
Gross profit | $ | 67.7 | 17.2 | % | $ | 61.9 | 16.5 | % | |||||||||
Three months ended June 30, | |||||||||||||||||
Operating income: | 2014 | 2013 | |||||||||||||||
North America | $ | 16.1 | $ | 14.3 | |||||||||||||
Europe | 10.4 | 8 | |||||||||||||||
South America | (0.2 | ) | 2.6 | ||||||||||||||
Asia | 0.9 | (0.3 | ) | ||||||||||||||
Building HVAC | 3.2 | 1 | |||||||||||||||
Segment operating income | 30.4 | 25.6 | |||||||||||||||
Corporate and eliminations | (6.3 | ) | (6.6 | ) | |||||||||||||
Operating income | $ | 24.1 | $ | 19 | |||||||||||||
30-Jun-14 | 31-Mar-14 | ||||||||||||||||
Total assets: | |||||||||||||||||
North America | $ | 230 | $ | 218.1 | |||||||||||||
Europe | 364 | 367.9 | |||||||||||||||
South America | 79.4 | 80.1 | |||||||||||||||
Asia | 98 | 92.8 | |||||||||||||||
Building HVAC | 152.3 | 132.7 | |||||||||||||||
Corporate and eliminations | 123.4 | 140.7 | |||||||||||||||
Total assets | $ | 1,047.10 | $ | 1,032.30 |
Airedale_Facility_Fire_Details
Airedale Facility Fire (Details) (Loss by Fire [Member], USD $) | 3 Months Ended | 10 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Loss by Fire [Member] | ' | ' | ' |
Unusual of Infrequent Item [Line Items] | ' | ' | ' |
Gain from insurance included in selling, general, and administrative expenses | $2.60 | ' | ' |
Advance received from insurance provider | ' | 37.6 | ' |
Inventory write off | ' | 4.7 | ' |
Equipment write off | ' | 1.4 | ' |
Other costs attributable to fire | ' | 13.2 | ' |
Aggregate losses and costs | ' | 19.3 | ' |
Company paid reconstruction costs | ' | 1.8 | ' |
Liability to rebuild damaged facility | 59 | 59 | 45 |
Current liability to rebuild damaged facility | 55.5 | 55.5 | 37 |
Noncurrent liability to rebuild damaged facility | 3.5 | 3.5 | 8 |
Insurance receivable | 43.3 | 43.3 | 25.4 |
Insurance receivable current | 41.6 | 41.6 | 18.4 |
Insurance receivable noncurrent | 1.7 | 1.7 | 7 |
Increased cost estimate to rebuild damaged facility | $14 | $14 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Fair Value Measurements [Abstract] | ' | ' |
Trading securities | $2.80 | $2.60 |
Deferred compensation obligations | $2.80 | $2.60 |
Pensions_Details
Pensions (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Contributions by employer | $1.80 | $1.60 |
Pension [Member] | ' | ' |
Pension plans [Abstract] | ' | ' |
Service cost | 0.1 | 0.1 |
Interest cost | 3.3 | 3.2 |
Expected return on plan assets | -4.2 | -3.9 |
Amortization of unrecognized net loss | 1.4 | 1.6 |
Net periodic benefit cost | $0.60 | $1 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Stock-Based Compensation [Abstract] | ' | ' |
Stock-based compensation cost | $1 | $0.90 |
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) | 2.10% | 1.30% |
Expected volatility of the Company's stock (in hundredths) | 76.10% | 88.70% |
Expected dividend yield on the Company's stock (in hundredths) | 0.00% | 0.00% |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' |
Unrecognized Compensation Cost | 12.7 | ' |
Weighted Average Remaining Service Period in Years | '2 years 10 months 24 days | ' |
Stock options [Member] | ' | ' |
Type and fair value of stock-based compensation awards granted [Abstract] | ' | ' |
Options granted (in shares) | 0.1 | 0.2 |
Options, grant date fair value (in dollars per share) | $10.21 | $7.76 |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' |
Unrecognized Compensation Cost | 2.4 | ' |
Weighted Average Remaining Service Period in Years | '3 years 3 months 18 days | ' |
Restricted Stock [Member] | ' | ' |
Type and fair value of stock-based compensation awards granted [Abstract] | ' | ' |
Stock granted (in shares) | 0.2 | 0.3 |
Fair value of stock granted (in dollars per share) | $14.94 | $10.40 |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' |
Unrecognized Compensation Cost | 6.4 | ' |
Weighted Average Remaining Service Period in Years | '3 years 1 month 6 days | ' |
Restricted stock - Performance Based Shares [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Performance period | '3 years | ' |
Type and fair value of stock-based compensation awards granted [Abstract] | ' | ' |
Stock granted (in shares) | 0.2 | 0.2 |
Fair value of stock granted (in dollars per share) | $14.94 | $10.40 |
Unrecognized compensation cost and recognition period [Abstract] | ' | ' |
Unrecognized Compensation Cost | $3.90 | ' |
Weighted Average Remaining Service Period in Years | '2 years 4 months 24 days | ' |
Restructuring_Expenses_Details
Restructuring Expenses (Details) (USD $) | 3 Months Ended | 27 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 |
Changes in accrued severance [Roll Forward] | ' | ' | ' |
Beginning Balance | $18.30 | $11.60 | ' |
Additions | 0 | 0.3 | ' |
Payments | -1.5 | -0.6 | ' |
Effect of exchange rate changes | -0.2 | 0.1 | ' |
Ending Balance | 16.6 | 11.4 | 16.6 |
Cost of Sales [Member] | ' | ' | ' |
Restructuring and repositioning expenses [Abstract] | ' | ' | ' |
Total restructuring and repositioning expenses | ' | 2.2 | ' |
Restructuring Expense [Member] | ' | ' | ' |
Restructuring and repositioning expenses [Abstract] | ' | ' | ' |
Total restructuring and repositioning expenses | 0.3 | 0.5 | ' |
Europe segment [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Asset impairment charges | ' | ' | 26.1 |
Restructuring and repositioning expenses [Abstract] | ' | ' | ' |
Employee severance and related benefits | 0 | 0.3 | 28.6 |
Accelerated depreciation | 0 | 2.2 | ' |
Other repositioning costs | 0.3 | 0.2 | 7.9 |
Total restructuring and repositioning expenses | 0.3 | 2.7 | ' |
South America Segment [Member] | Restructuring Expense [Member] | ' | ' | ' |
Restructuring and repositioning expenses [Abstract] | ' | ' | ' |
Employee severance and related benefits | $0.50 | ' | ' |
Other_Income_and_Expense_Detai
Other Income and Expense (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Other Income and Expense [Abstract] | ' | ' |
Equity in earnings of non-consolidated affiliate | $0.20 | $0.20 |
Interest income | 0.1 | 0.1 |
Foreign currency transactions | -0.5 | -0.8 |
Total other expense - net | ($0.20) | ($0.50) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Income Taxes [Abstract] | ' | ' |
Effective income tax rate (in hundredths) | 32.20% | 31.60% |
Domestic Tax Jurisdiction Member] | ' | ' |
Valuation Allowance [Line Items] | ' | ' |
Deferred tax asset, valuation allowance | 15.3 | ' |
Foreign Tax [Member] | ' | ' |
Valuation Allowance [Line Items] | ' | ' |
Deferred tax asset, valuation allowance | 46.3 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Components of basic and diluted earnings per share [Abstract] | ' | ' |
Net earnings attributable to Modine | $13.70 | $10 |
Less: Undistributed earnings attributable to unvested shares | -0.2 | -0.1 |
Net earnings available to Modine shareholders | $13.50 | $9.90 |
Weighted average shares outstanding - basic (in shares) | 47 | 46.7 |
Effect of dilutive securities (in shares) | 0.7 | 0.6 |
Weighted average shares outstanding - diluted (in shares) | 47.7 | 47.3 |
Earnings per share: [Abstract] | ' | ' |
Net earnings per share - basic (in dollars per share) | $0.29 | $0.21 |
Net earnings per share - diluted (in dollars per share) | $0.28 | $0.21 |
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) | 0.6 | 1 |
Inventories_Details
Inventories (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ' | ' |
Raw materials and work in process | $95.90 | $89.20 |
Finished goods | 31.4 | 27.6 |
Total inventories | $127.30 | $116.80 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Jun. 30, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, plant and equipment [Abstract] | ' | ' |
Gross property, plant and equipment | $1,079.70 | $1,078.60 |
Accumulated depreciation | -719.1 | -719 |
Net property, plant and equipment | $360.60 | $359.60 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, Beginning Balance | $28.70 | ' | ' |
Effect of exchange rate changes | 0.7 | ' | ' |
Ending balance | 29.4 | ' | ' |
Amortized intangible assets [Abstract] | ' | ' | ' |
Gross Carrying Value | 18.6 | ' | 18.3 |
Accumulated Amortization | -6.4 | ' | -5.9 |
Net Intangible Assets | 12.2 | ' | 12.4 |
Amortization Expense | 0.4 | 0.2 | ' |
Amortization expense, fiscal year maturity [Abstract] | ' | ' | ' |
Remainder of 2015 | 1.2 | ' | ' |
2016 | 1.7 | ' | ' |
2017 | 1.8 | ' | ' |
2018 | 1.8 | ' | ' |
2019 | 1.6 | ' | ' |
2020 & Beyond | 4.1 | ' | ' |
Tradenames [Member] | ' | ' | ' |
Amortized intangible assets [Abstract] | ' | ' | ' |
Gross Carrying Value | 10.3 | ' | 10.1 |
Accumulated Amortization | -5.9 | ' | -5.7 |
Net Intangible Assets | 4.4 | ' | 4.4 |
Acquired technology [Member] | ' | ' | ' |
Amortized intangible assets [Abstract] | ' | ' | ' |
Gross Carrying Value | 5.9 | ' | 5.8 |
Accumulated Amortization | -0.4 | ' | -0.2 |
Net Intangible Assets | 5.5 | ' | 5.6 |
Customer relationships [Member] | ' | ' | ' |
Amortized intangible assets [Abstract] | ' | ' | ' |
Gross Carrying Value | 2.4 | ' | 2.4 |
Accumulated Amortization | -0.1 | ' | 0 |
Net Intangible Assets | 2.3 | ' | 2.4 |
South America [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, Beginning Balance | 10.9 | ' | ' |
Effect of exchange rate changes | 0.3 | ' | ' |
Ending balance | 11.2 | ' | ' |
Asia [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, Beginning Balance | 0.5 | ' | ' |
Effect of exchange rate changes | 0 | ' | ' |
Ending balance | 0.5 | ' | ' |
Building HVAC [Member] | ' | ' | ' |
Goodwill [Roll Forward] | ' | ' | ' |
Goodwill, Beginning Balance | 17.3 | ' | ' |
Effect of exchange rate changes | 0.4 | ' | ' |
Ending balance | $17.70 | ' | ' |
Product_Warranties_Details
Product Warranties (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in the warranty liability [Roll Forward] | ' | ' |
Beginning balance | $14 | $12.60 |
Accruals for warranties issued | 1.6 | 1.4 |
Accruals related to pre-existing warranties | 0.6 | 2.5 |
Settlements | -2.4 | -4 |
Effect of exchange rate changes | 0.1 | -0.2 |
Ending balance | $13.90 | $12.30 |
Indebtedness_Details
Indebtedness (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Debt Instrument [Line Items] | ' | ' |
Short-term debt | $30.60 | $32.40 |
Long-term debt, fair value | 141 | 140 |
Line of Credit Facility [Line Items] | ' | ' |
Available for future borrowings | 214 | ' |
Domestic Revolving Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Amount outstanding | 0 | 0 |
Maximum borrowing capacity | 175 | ' |
Expiration date | 31-Aug-18 | ' |
Available for future borrowings | 166 | ' |
Foreign Credit Facility [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Available for future borrowings | 48 | ' |
Domestic Letters of Credit [Member] | ' | ' |
Line of Credit Facility [Line Items] | ' | ' |
Letters of credit outstanding | 9 | ' |
6.8% Senior Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $125 | ' |
Stated interest rate (in hundredths) | 6.80% | ' |
Contingencies_and_Litigation_D
Contingencies and Litigation (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 |
Site | ||
Environmental Matters [Abstract] | ' | ' |
Reserves for these environmental matters | $5.10 | $5.10 |
Number of sites remediation considered for potentially responsible party | 3 | ' |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | ($103.90) | ($128.40) | ||
Other comprehensive income before reclassifications | 1.5 | -4.3 | ||
Reclassifications [Abstract] | ' | ' | ||
Total other comprehensive (loss) income | 2.4 | -2.9 | ||
Ending balance | -101.5 | -131.3 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ||
Reclassifications [Abstract] | ' | ' | ||
Amortization of unrecognized net loss | 1.4 | [1] | 1.6 | [1] |
Amortization of unrecognized prior service credit | ' | -0.3 | [1] | |
Commodity derivatives | ' | 0.1 | [2] | |
Income taxes | -0.5 | ' | ||
Foreign Currency Translation [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | 27.3 | 17.8 | ||
Other comprehensive income before reclassifications | 1.5 | -4.3 | ||
Reclassifications [Abstract] | ' | ' | ||
Total other comprehensive (loss) income | 1.5 | -4.3 | ||
Ending balance | 28.8 | 13.5 | ||
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] | |
Commodity derivatives | ' | 0 | [2] | |
Income taxes | 0 | ' | ||
Cash Flow Hedges [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | 0 | -1.1 | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Reclassifications [Abstract] | ' | ' | ||
Total other comprehensive (loss) income | 0 | 0.1 | ||
Ending balance | 0 | -1 | ||
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] | |
Commodity derivatives | ' | 0.1 | [2] | |
Income taxes | 0 | ' | ||
Defined Benefit Plans [Member] | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ||
Beginning balance | -131.2 | -145.1 | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Reclassifications [Abstract] | ' | ' | ||
Total other comprehensive (loss) income | 0.9 | 1.3 | ||
Ending balance | -130.3 | -143.8 | ||
Defined Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ||
Reclassifications [Abstract] | ' | ' | ||
Amortization of unrecognized net loss | 1.4 | [1] | 1.6 | [1] |
Amortization of unrecognized prior service credit | ' | -0.3 | [1] | |
Commodity derivatives | ' | 0 | [2] | |
Income taxes | ($0.50) | ' | ||
[1] | Amounts are included in the calculation of net periodic benefit cost. See Note 4 for additional information. | |||
[2] | Reclassifications for commodity derivatives are included in cost of sales. |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | $392.50 | $375.80 | ' |
Gross profit | 67.7 | 61.9 | ' |
Gross profit as % of sales (in hundredths) | 17.20% | 16.50% | ' |
Operating income | 24.1 | 19 | ' |
Total assets | 1,047.10 | ' | 1,032.30 |
Operating Segments [Member] | ' | ' | ' |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | 397 | 380 | ' |
Gross profit | 67.3 | 61.7 | ' |
Gross profit as % of sales (in hundredths) | 17.00% | 16.20% | ' |
Operating income | 30.4 | 25.6 | ' |
Operating Segments [Member] | North America [Member] | ' | ' | ' |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | 151.7 | 148.7 | ' |
Gross profit | 28.1 | 25.5 | ' |
Gross profit as % of sales (in hundredths) | 18.50% | 17.20% | ' |
Operating income | 16.1 | 14.3 | ' |
Total assets | 230 | ' | 218.1 |
Operating Segments [Member] | Europe [Member] | ' | ' | ' |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | 158.6 | 146.2 | ' |
Gross profit | 22.2 | 19.3 | ' |
Gross profit as % of sales (in hundredths) | 14.00% | 13.20% | ' |
Operating income | 10.4 | 8 | ' |
Total assets | 364 | ' | 367.9 |
Operating Segments [Member] | South America [Member] | ' | ' | ' |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | 25.2 | 34.4 | ' |
Gross profit | 3.5 | 6.1 | ' |
Gross profit as % of sales (in hundredths) | 13.80% | 17.80% | ' |
Operating income | -0.2 | 2.6 | ' |
Total assets | 79.4 | ' | 80.1 |
Operating Segments [Member] | Asia [Member] | ' | ' | ' |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | 20.8 | 18.3 | ' |
Gross profit | 3.6 | 2.3 | ' |
Gross profit as % of sales (in hundredths) | 17.20% | 12.80% | ' |
Operating income | 0.9 | -0.3 | ' |
Total assets | 98 | ' | 92.8 |
Operating Segments [Member] | Building HVAC [Member] | ' | ' | ' |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | 40.7 | 32.4 | ' |
Gross profit | 9.9 | 8.5 | ' |
Gross profit as % of sales (in hundredths) | 24.30% | 26.20% | ' |
Operating income | 3.2 | 1 | ' |
Total assets | 152.3 | ' | 132.7 |
Corporate and Eliminations [Member] | ' | ' | ' |
Segment Reporting Information [Abstract] | ' | ' | ' |
Net sales | -4.5 | -4.2 | ' |
Gross profit | 0.4 | 0.2 | ' |
Gross profit as % of sales (in hundredths) | 0.00% | 0.00% | ' |
Operating income | -6.3 | -6.6 | ' |
Total assets | $123.40 | ' | $140.70 |