Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | 22-May-15 | Sep. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MODINE MANUFACTURING CO | ||
Entity Central Index Key | 67347 | ||
Current Fiscal Year End Date | -28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $550,000,000 | ||
Entity Common Stock, Shares Outstanding | 47,895,824 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Mar-15 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||
Net sales | $1,496.40 | $1,477.60 | $1,376 |
Cost of sales | 1,249.90 | 1,239.40 | 1,167.40 |
Gross profit | 246.5 | 238.2 | 208.6 |
Selling, general and administrative expenses | 184.5 | 181.7 | 166.3 |
Restructuring expenses | 4.7 | 16.1 | 17 |
Impairment charges | 7.8 | 3.2 | 25.9 |
Gain on sale of wind tunnel | -3.2 | 0 | 0 |
Operating income (loss) | 52.7 | 37.2 | -0.6 |
Interest expense | -11.7 | -12.4 | -12.6 |
Other income (expense) - net | 0.2 | -0.8 | 0.2 |
Earnings (loss) from continuing operations before income taxes | 41.2 | 24 | -13 |
(Provision) benefit for income taxes | -19 | 107.9 | -9.8 |
Earnings (loss) from continuing operations | 22.2 | 131.9 | -22.8 |
Earnings from discontinued operations, net of income taxes | 0.6 | 0 | 0 |
Net earnings (loss) | 22.8 | 131.9 | -22.8 |
Net earnings attributable to noncontrolling interest | -1 | -1.5 | -1.4 |
Net earnings (loss) attributable to Modine | $21.80 | $130.40 | ($24.20) |
Earnings (loss) per share from continuing operations attributable to Modine shareholders: | |||
Basic (in dollars per share) | $0.45 | $2.75 | ($0.52) |
Diluted (in dollars per share) | $0.44 | $2.72 | ($0.52) |
Net earnings (loss) per share attributable to Modine shareholders: | |||
Basic (in dollars per share) | $0.46 | $2.75 | ($0.52) |
Diluted (in dollars per share) | $0.45 | $2.72 | ($0.52) |
Weighted average shares outstanding: | |||
Basic (in shares) | 47.2 | 46.9 | 46.6 |
Diluted (in shares) | 47.8 | 47.6 | 46.6 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings (loss) | $22.80 | $131.90 | ($22.80) |
Other comprehensive income (loss): | |||
Foreign currency translation | -68.2 | 9.7 | -17.1 |
Defined benefit plans, net of income taxes of ($13.2), $9.8 and $0 million | -26.7 | 13.9 | -23.6 |
Cash flow hedges, net of income taxes of $0, $0.6 and $0 million | 0 | 1.1 | 2.6 |
Total other comprehensive income (loss) | -94.9 | 24.7 | -38.1 |
Comprehensive income (loss) | -72.1 | 156.6 | -60.9 |
Comprehensive income attributable to noncontrolling interest | -0.8 | -1.7 | -1.4 |
Comprehensive income (loss) attributable to Modine | ($72.90) | $154.90 | ($62.30) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Other comprehensive income (loss): | |||
Defined benefit plans, tax | ($13.20) | $9.80 | $0 |
Cash flow hedges, tax | $0 | $0.60 | $0 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $70.50 | $87.20 |
Trade accounts receivable - net | 192.9 | 221.1 |
Inventories | 107.7 | 116.8 |
Deferred income taxes | 13.4 | 13 |
Other current assets | 79.7 | 60.7 |
Total current assets | 464.2 | 498.8 |
Property, plant and equipment - net | 322.1 | 359.6 |
Intangible assets - net | 9.9 | 12.4 |
Goodwill | 16.2 | 28.7 |
Deferred income taxes | 102.7 | 98.6 |
Other noncurrent assets | 16.5 | 34.2 |
Total assets | 931.6 | 1,032.30 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Short-term debt | 18.6 | 32.4 |
Long-term debt - current portion | 0.5 | 0.8 |
Accounts payable | 152 | 171.1 |
Accrued compensation and employee benefits | 56.7 | 70.8 |
Other current liabilities | 83.4 | 82.1 |
Total current liabilities | 311.2 | 357.2 |
Long-term debt | 129.6 | 131.2 |
Deferred income taxes | 3.4 | 7.3 |
Pensions | 110.4 | 81 |
Other noncurrent liabilities | 16.4 | 27 |
Total liabilities | 571 | 603.7 |
Commitments and contingencies (see Note 19) | ||
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 | 180.6 | 175.7 |
Retained earnings | 359.8 | 338 |
Accumulated other comprehensive loss | -198.6 | -103.9 |
Treasury stock, at cost, 0.7 million shares | -16.2 | -15.2 |
Total Modine shareholders' equity | 356 | 424.8 |
Noncontrolling interest | 4.6 | 3.8 |
Total equity | 360.6 | 428.6 |
Total liabilities and equity | $931.60 | $1,032.30 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | 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 shares) | $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 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | |||
Net earnings (loss) | $22.80 | $131.90 | ($22.80) |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 51.6 | 58.1 | 55.8 |
Insurance proceeds from Airedale fire | 12.9 | 16.9 | 0 |
Pension and postretirement expense | 2.3 | 3.2 | 1.9 |
Gain on sale of wind tunnel | -3.2 | 0 | 0 |
Impairment charges | 7.8 | 3.2 | 25.9 |
Loss from disposition of property, plant and equipment | 1.1 | 2.6 | 2.5 |
Deferred income taxes | 5.9 | -116.1 | 0.6 |
Stock-based compensation expense | 4 | 3.6 | 3.1 |
Other - net | -0.7 | -0.5 | 4.1 |
Changes in operating assets and liabilities, excluding acquisitions: | |||
Trade accounts receivable | -0.1 | -18.2 | 15.1 |
Inventories | -4.2 | -0.1 | -0.8 |
Accounts payable | -2.4 | 15.2 | -3.2 |
Accrued compensation and employee benefits | -5.3 | 17.5 | 1.9 |
Other assets | -24.5 | 2.1 | -6.6 |
Other liabilities | -4.5 | -14.9 | -28.7 |
Net cash provided by operating activities | 63.5 | 104.5 | 48.8 |
Cash flows from investing activities: | |||
Expenditures for property, plant and equipment | -58.3 | -53.1 | -49.8 |
Insurance proceeds from Airedale fire | 12.2 | 20.7 | 0 |
Costs to replace building and equipment damaged in Airedale fire | -16.7 | -4.2 | 0 |
Proceeds from dispositions of assets | 7.6 | 2.9 | 0.4 |
Purchases of short-term investments | -5.2 | 0 | 0 |
Proceeds from maturities of short-term investments | 2.4 | 0 | 0 |
Acquisitions - net of cash acquired | 0 | -7.8 | -4.9 |
Other - net | 0.8 | 0 | -1.6 |
Net cash used for investing activities | -57.2 | -41.5 | -55.9 |
Cash flows from financing activities: | |||
Borrowings of debt | 36.4 | 152.6 | 166.7 |
Repayments of debt | -50.9 | -152.4 | -167.1 |
Financing fees paid | -0.1 | -0.9 | 0 |
Dividend paid to noncontrolling interest | 0 | -0.5 | 0 |
Other - net | 0 | -0.3 | 0.7 |
Net cash (used for) provided by financing activities | -14.6 | -1.5 | 0.3 |
Effect of exchange rate changes on cash | -8.4 | 1.9 | -0.8 |
Net increase (decrease) in cash and cash equivalents | -16.7 | 63.4 | -7.6 |
Cash and cash equivalents at beginning of year | 87.2 | 23.8 | 31.4 |
Cash and cash equivalents at end of year | $70.50 | $87.20 | $23.80 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Common stock [Member] | Additional paid-in capital [Member] | Retained earnings [Member] | Accumulated other comprehensive loss [Member] | Treasury stock, at cost [Member] | Non-controlling interest [Member] | Total |
In Millions, unless otherwise specified | |||||||
Balance at Mar. 31, 2012 | $29.60 | $168.30 | $231.80 | ($90.30) | ($14.50) | $1.20 | $326.10 |
Balance (in shares) at Mar. 31, 2012 | 47.4 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to Modine | 0 | 0 | -24.2 | 0 | 0 | 0 | -24.2 |
Other comprehensive (loss) income | 0 | 0 | 0 | -38.1 | 0 | 0 | -38.1 |
Stock options and awards including related tax benefits | 0.3 | -0.2 | 0 | 0 | 0 | 0 | 0.1 |
Stock options and awards including related tax benefits (in shares) | 0.4 | ||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | -0.1 | 0 | -0.1 |
Stock-based compensation expense | 0 | 3.1 | 0 | 0 | 0 | 0 | 3.1 |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 1.4 | 1.4 |
Balance at Mar. 31, 2013 | 29.9 | 171.2 | 207.6 | -128.4 | -14.6 | 2.6 | 268.3 |
Balance (in shares) at Mar. 31, 2013 | 47.8 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to Modine | 0 | 0 | 130.4 | 0 | 0 | 0 | 130.4 |
Other comprehensive (loss) income | 0 | 0 | 0 | 24.5 | 0 | 0.2 | 24.7 |
Stock options and awards including related tax benefits | 0.3 | 0.9 | 0 | 0 | 0 | 0 | 1.2 |
Stock options and awards including related tax benefits (in shares) | 0.5 | ||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | -0.6 | 0 | -0.6 |
Stock-based compensation expense | 0 | 3.6 | 0 | 0 | 0 | 0 | 3.6 |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | -0.5 | -0.5 |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 1.5 | 1.5 |
Balance at Mar. 31, 2014 | 30.2 | 175.7 | 338 | -103.9 | -15.2 | 3.8 | 428.6 |
Balance (in shares) at Mar. 31, 2014 | 48.3 | 48.3 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) attributable to Modine | 0 | 0 | 21.8 | 0 | 0 | 0 | 21.8 |
Other comprehensive (loss) income | 0 | 0 | 0 | -94.7 | 0 | -0.2 | -94.9 |
Stock options and awards including related tax benefits | 0.2 | 0.9 | 0 | 0 | 0 | 0 | 1.1 |
Stock options and awards including related tax benefits (in shares) | 0.3 | ||||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | -1 | 0 | -1 |
Stock-based compensation expense | 0 | 4 | 0 | 0 | 0 | 0 | 4 |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 1 | 1 |
Balance at Mar. 31, 2015 | $30.40 | $180.60 | $359.80 | ($198.60) | ($16.20) | $4.60 | $360.60 |
Balance (in shares) at Mar. 31, 2015 | 48.6 | 48.6 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||
Significant Accounting Policies | Note 1: | Significant Accounting Policies | |||||||||||
Nature of operations: Modine Manufacturing Company (“Modine” or the “Company”) specializes in thermal management systems and components, bringing heating and cooling technology and solutions to diversified global markets. The Company is a leading global developer, manufacturer and marketer of heat exchangers and systems for use in on-highway and off-highway original equipment manufacturer (“OEM”) vehicular applications, and a wide array of building, industrial and refrigeration markets. Product lines include radiators and radiator cores, condensers, oil coolers, charge air coolers, heat-transfer modules and assemblies, exhaust gas recirculation (“EGR”) coolers, and building heating, ventilating and air conditioning (“HVAC”) equipment. | |||||||||||||
Basis of presentation: The Company prepares its consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. These principles require management to make certain estimates and assumptions in determining assets, liabilities, revenue, expenses and related disclosures. Actual amounts could differ materially from those estimates. | |||||||||||||
Consolidation principles: The consolidated financial statements include the accounts of Modine Manufacturing Company and its majority-owned or Modine-controlled subsidiaries. The Company eliminates intercompany transactions and balances in consolidation. | |||||||||||||
The Company accounts for investments in non-consolidated affiliated companies in which its ownership is 20 percent or more using the equity method. The Company states these investments at cost, plus or minus a proportionate share of undistributed net income (loss). The Company includes Modine’s share of the affiliates net income (loss) in other income and expense. See Note 12 for further discussion. | |||||||||||||
Discontinued operations: During fiscal 2009, the Company sold its Electronics Cooling business. The buyer financed a portion of the selling price by issuing promissory notes payable to Modine. During fiscal 2015, the Company received $1.5 million from the buyer, which represented the final payment on the promissory notes. The Company had previously recorded a reserve against a portion of the promissory notes due to collectability concerns. As a result, the Company recorded a gain of $0.9 million ($0.6 million after income taxes) during fiscal 2015. | |||||||||||||
Assets held for sale: The Company considers assets to be held for sale when management approves and commits to a formal plan to actively market the assets for sale at a price reasonable in relation to its fair value, the asset is available for immediate sale in its present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, the sale of the asset is expected to be completed within one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, the Company records the carrying value of the assets at the lower of its carrying value or its estimated fair value, less costs to sell. The Company ceases to record depreciation expense at the time of designation as held for sale. | |||||||||||||
Revenue recognition: The Company recognizes sales revenue, including agreed upon commodity price increases or decreases, when it is both earned and realized or realizable. The Company’s policy is to recognize revenue when title to the product and risk of loss have transferred to the customer, persuasive evidence of an arrangement exists, and collection of the sales proceeds is reasonably assured, all of which generally occur upon shipment of goods to customers. The Company makes appropriate provisions for uncollectible accounts receivable based on historical data or specific customer economic data. The Company records sales discounts, which are offered for prompt payment by certain customers, as a reduction to net sales. | |||||||||||||
Tooling costs: The Company accounts for production tooling costs as a component of property, plant and equipment when it owns title to the tooling and amortizes the capitalized cost to cost of sales over the estimated life of the asset, which is generally three years. At March 31, 2015 and 2014, Company-owned tooling totaled $18.7 million and $28.6 million, respectively. In certain instances, the Company makes upfront payments for customer-owned tooling costs, and subsequently receives reimbursement from customers for the upfront payments. The Company accounts for unbilled customer-owned tooling costs as a receivable within other current assets when the customer has guaranteed reimbursement to the Company. No significant arrangements exist where customer-owned tooling costs were not accompanied by guaranteed reimbursement. At March 31, 2015 and 2014, cost reimbursement receivables related to customer-owned tooling totaled $11.6 million and $10.3 million, respectively. | |||||||||||||
Warranty: The Company provides product warranties for specific product lines and accrues for estimated future warranty costs in the period in which the sale is recorded. The Company records warranty expense based upon historical and current claims data or based on estimated future claims. Accrual balances, which are recorded within other current liabilities, are monitored and adjusted if it is probable that expected claims will differ from previous estimates. See Note 15 for further discussion. | |||||||||||||
Shipping and handling costs: The Company records shipping and handling costs incurred upon the shipment of products to its OEM customers in cost of sales, and related amounts billed to these customers in net sales. The Company records shipping and handling costs incurred upon the shipment of products to its HVAC and aftermarket customers in selling, general and administrative (“SG&A”) expenses. For the years ended March 31, 2015, 2014, and 2013, these shipping and handling costs recorded in SG&A expenses were $4.9 million, $4.0 million, and $4.3 million, respectively. | |||||||||||||
Research and development: The Company expenses research and development costs as incurred within SG&A expenses. For the years ended March 31, 2015, 2014, and 2013, research and development costs charged to operations totaled $62.0 million, $61.7 million, and $68.4 million, respectively. | |||||||||||||
Translation of foreign currencies: The Company translates assets and liabilities of foreign subsidiaries and equity investments into U.S. dollars at the period-end exchange rates, and translates income and expense items at the monthly average exchange rate for the period in which the transactions occur. The Company reports resulting translation adjustments within accumulated other comprehensive income (loss) within shareholders' equity. The Company includes foreign currency transaction gains or losses in the statement of operations within other income and expense. | |||||||||||||
Derivative instruments: The Company enters into derivative financial instruments from time to time to manage certain financial risks. The Company enters into futures contracts to reduce exposure to changing future purchase prices for aluminum and copper and into foreign currency exchange contracts to hedge specific foreign currency denominated assets and liabilities. These instruments are used to manage financial risks and are not speculative. See Note 18 for further discussion. | |||||||||||||
Income taxes: The Company determines deferred tax assets and liabilities based upon the difference between the amounts reported in the financial statements and the tax basis of assets and liabilities, using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company establishes a valuation allowance if it is more likely than not that a deferred tax asset, or portion thereof, will not be realized. See Note 8 for further discussion. | |||||||||||||
Earnings per share: The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company. Therefore, these restricted stock awards are included in computing earnings per share pursuant to the two-class method. See Note 9 for further discussion. | |||||||||||||
Cash and cash equivalents: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Under the Company’s cash management system, cash balances at certain banks are funded when checks are presented for payment. To the extent checks issued, but not yet presented for payment, exceed the balance on hand at the specific bank against which they were written, the amount of those un-presented checks is included in accounts payable. | |||||||||||||
Short-term investments: The Company invests in time deposits with original maturities of more than three months but no more than one year. The Company records these short-term investments at cost, which approximates fair value, within other current assets in the consolidated balance sheets. | |||||||||||||
Deferred compensation trust: The Company maintains a deferred compensation trust to fund future obligations under its non-qualified deferred compensation plan. The trust’s investments in third-party debt and equity securities are presented within other noncurrent assets in the consolidated balance sheets. | |||||||||||||
Trade accounts receivable: The Company records trade receivables at the invoiced amount. Trade receivables do not bear interest if paid according to the original terms. The allowance for doubtful accounts, $1.0 million and $1.1 million at March 31, 2015 and 2014, respectively, represents estimated uncollectible receivables. The Company enters into supply chain financing programs from time to time to sell accounts receivable without recourse to third-party financial institutions. Sales of accounts receivable are reflected as a reduction of accounts receivable on the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. During the years ended March 31, 2015, 2014, and 2013, the Company sold, without recourse, $87.0 million, $82.4 million, and $99.1 million of accounts receivable to accelerate cash receipts. During each of the years ended March 31, 2015, 2014, and 2013, the Company recorded a loss on the sale of accounts receivables of $0.3 million in the consolidated statements of operations. | |||||||||||||
Inventories: The Company values inventories at the lower of cost, on a first-in, first-out basis or weighted average basis, or market value. | |||||||||||||
Property, plant and equipment: The Company states property, plant and equipment at cost. For financial reporting purposes, the Company computes depreciation using the straight-line method over the expected useful life of the asset. The Company charges maintenance and repair costs to operations as incurred. The Company capitalizes costs of improvements. Upon the sale or other disposition of an asset, the Company removes the cost and related accumulated depreciation from the accounts and includes the gain or loss in the consolidated statements of operations. | |||||||||||||
Goodwill: The Company does not amortize goodwill; rather, it tests for impairment annually unless conditions exist that would require a more frequent evaluation. The Company performs an assessment of the fair value of its reporting units for goodwill impairment testing based upon, among other things, the present value of expected future cash flows. The Company recognizes an impairment loss if the book value of goodwill exceeds the fair value. The Company performed the goodwill impairment test as of March 31, 2015 and as a result, recorded an impairment charge of $7.8 million related to its South America segment. See Note 14 for further discussion. | |||||||||||||
Impairment of long-lived assets: The Company reviews long-lived assets, including property, plant and equipment and intangible assets for impairment and writes them down to fair value when facts and circumstances indicate the carrying value of the assets may not be recoverable through estimated future undiscounted cash flows. If an impairment has occurred, the Company writes down the asset to its estimated fair value and recognizes the impairment loss as a charge against current operations. The Company estimates fair value using a variety of valuation techniques, including discounted cash flows, market values and comparison values for similar assets. See Note 6 for further discussion. | |||||||||||||
Environmental expenditures: The Company capitalizes environmental expenditures that qualify as property, plant and equipment or substantially increase the economic value or extend the useful life of an asset. The Company expenses all other expenditures as incurred. If a loss arising from environmental matters is probable and can be reasonably estimated, the Company records an accrual for the amount of the estimated loss. See Note 19 for further discussion. | |||||||||||||
Self-insurance reserves: The Company retains a portion of the financial risk for various insurance coverage, including property, general liability, workers compensation, and employee healthcare, and therefore maintains reserves that estimate the impact of unreported and under-reported claims that fall below various stop-loss limits and deductibles under its insurance policies. The Company maintains reserves for the estimated settlement cost of known claims, as well as estimates of incurred but not reported claims. The Company charges costs of claims, including the impact of changes in reserves due to claim experience and severity, to operations. The Company reviews and updates the evaluation of insurance claims and the reasonableness of the related reserves on a quarterly basis. | |||||||||||||
Stock-based compensation: The Company recognizes stock-based compensation using the fair value method. Accordingly, compensation expense for stock options, restricted stock and performance-based stock awards is calculated based upon the fair value of the instruments at the time of grant, and is recognized as expense over the respective vesting periods. See Note 5 for further discussion. | |||||||||||||
Out of period adjustments: During the second quarter of fiscal 2014, the Company recorded a customer pricing adjustment that 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 these errors were material to its financial statements for fiscal 2014 or 2013. | |||||||||||||
New accounting guidance: In May 2014, the Financial Accounting Standards Board issued new guidance that outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle 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 at the earliest. The Company is currently evaluating the impact the new guidance will have on its consolidated financial statements. | |||||||||||||
Supplemental cash flow information: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Interest paid | $ | 10.3 | $ | 12.6 | $ | 11.6 | |||||||
Income taxes paid | 15.9 | 11.4 | 12.4 |
Airedale_Facility_Fire
Airedale Facility Fire | 12 Months Ended | |
Mar. 31, 2015 | ||
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 a temporary manufacturing suspension at the Rawdon site; however, the Company transferred its operations to temporary facilities and is in the process of rebuilding the leased facility. The Company expects to complete reconstruction and return its operations to the Rawdon site in late fiscal 2016. | ||
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 fiscal 2015, the Company recorded $4.6 million of recoveries from business interruption insurance relating to fiscal 2015 and 2014 lost profits within SG&A expenses. Since the date of the fire, the Company has received cumulative cash proceeds of $62.7 million from its insurance provider for covered losses. In addition, the Company has 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 $22.0 million. The Company has recorded these losses and costs, which totaled $28.1 million, in the same statement of operations line as the related insurance recovery. | ||
The terms of the Rawdon lease agreement obligate the Company to rebuild the damaged facility. Through March 31, 2015, the Company has capitalized reconstruction costs of $21.2 million, and has recorded this asset on the consolidated balance sheet within other current assets. The Company currently estimates costs of reconstruction will total $48.0 million; accordingly, we recorded a $48.0 million other current liability as of March 31, 2015. As of March 31, 2015, we recorded an $18.0 million receivable from the Company’s insurance provider within other current assets, which represented covered losses to date in excess of cumulative cash proceeds received. 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). |
Acquisitions
Acquisitions | 12 Months Ended | |
Mar. 31, 2015 | ||
Acquisitions [Abstract] | ||
Acquisitions | Note 3: | Acquisitions |
On February 28, 2014, the Company acquired 100 percent of the shares of Barkell Limited of Consett, United Kingdom for cash consideration of $7.8 million, net of cash acquired. This acquisition provides Modine with an expanded product offering into the air handling market within the Building HVAC segment. The Company recorded assets acquired and liabilities assumed at their respective fair values. The purchase price allocation resulted in intangible assets for acquired technology and customer relationships totaling $4.7 million; property, plant and equipment of $2.0 million; and working capital net assets of $1.1 million. Acquired technology consists of a fully developed product line and technical processes, and the customer relationships represent established sales channel and customer relationships. The Company is amortizing these acquired intangible assets over ten years. | ||
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 acquired business, which is included in the Building HVAC segment, provides Modine with a product line of innovative geothermal heat pumps in both water-to-water and water-to-air models. The Company recorded assets acquired and liabilities assumed 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 consists of a fully developed air handling product line, which the Company is amortizing over ten years. | ||
The results of operations of these acquired businesses are included in the Company’s consolidated statements of operations since the dates of acquisition. The Company did not present pro forma financial information as the effects of these acquisitions are not material to the results of operations or financial position. | ||
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 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 SG&A expenses in the South America segment during fiscal 2013. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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 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, short-term investments, 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 $3.0 million and $2.6 million at March 31, 2015 and 2014, respectively. The fair value of the Company’s debt is disclosed in Note 16. | |||||||||||||||||
Plan assets related to the Company’s pension plans were classified as follows: | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market investments | $ | - | $ | 8.1 | $ | - | $ | 8.1 | |||||||||
Common stocks | 40.5 | 2.2 | - | 42.7 | |||||||||||||
Corporate bonds | - | 23.5 | - | 23.5 | |||||||||||||
Pooled equity funds | 69 | 11.4 | - | 80.4 | |||||||||||||
Pooled fixed-income funds | 15.5 | - | - | 15.5 | |||||||||||||
U.S. government and agency securities | - | 39.8 | - | 39.8 | |||||||||||||
Other | 0.7 | 6.3 | - | 7 | |||||||||||||
Total | $ | 125.7 | $ | 91.3 | $ | - | $ | 217 | |||||||||
31-Mar-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market investments | $ | - | $ | 11.3 | $ | - | $ | 11.3 | |||||||||
Common stocks | 40.1 | 2.1 | - | 42.2 | |||||||||||||
Corporate bonds | - | 21.3 | - | 21.3 | |||||||||||||
Pooled equity funds | 68.9 | 11.9 | - | 80.8 | |||||||||||||
Pooled fixed-income funds | 14.1 | - | - | 14.1 | |||||||||||||
U.S. government and agency securities | - | 37 | - | 37 | |||||||||||||
Other | 1.6 | 5.4 | - | 7 | |||||||||||||
Total | $ | 124.7 | $ | 89 | $ | - | $ | 213.7 | |||||||||
The Company determined the fair value of money market investments to approximate their net asset values, without discounts for credit quality or liquidity restrictions, and classified them within Level 2 of the valuation hierarchy. The Company determined the fair value of common stocks, pooled equity funds and pooled fixed-income funds based on quoted prices from active markets and classify them within Level 1 of the valuation hierarchy. The Company determined the fair value of certain common stocks, corporate bonds, pooled equity funds and U.S. government and agency securities based upon recent bid prices or the average of recent bid and asking prices when available and, if not available, the Company valued them through matrix pricing models developed by sources considered by management to be reliable. The Company classified these assets within Level 2 of the valuation hierarchy. | |||||||||||||||||
Assets held for sale: The Company valued assets held for sale based on Level 3 market-based valuation inputs. The carrying value of assets held for sale totaled $3.2 million and $11.6 million at March 31, 2015 and 2014, respectively. See Note 6 for further discussion. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
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. The Company’s Board of Directors and the Officer Nomination and Compensation Committee, as applicable, have discretionary authority to set the terms of the awards of stock under the Company’s Amended and Restated 2008 Incentive Compensation Plan (“Plan”). At present, the Company accomplishes the fulfillment of equity-based grants through the issuance of new common shares. As of March 31, 2015, approximately 4.0 million shares authorized under the Plan remain available for future grants. Employee participants have the opportunity to deliver back to the Company the number of shares from the vesting of stock awards sufficient to satisfy the individual’s minimum tax withholding obligations. These shares are held as treasury shares. The Company recorded stock-based compensation expense of $4.0 million, $3.6 million, and $3.1 million in fiscal 2015, 2014, and 2013, respectively. | |||||||||||||||||
Stock Options: The Company recorded $0.9 million, $0.8 million, and $1.1 million of compensation expense related to stock options in fiscal 2015, 2014, and 2013, respectively. The fair value of stock options that vested during fiscal 2015, 2014, and 2013 was $0.9 million, $0.8 million, and $1.3 million, respectively. As of March 31, 2015, the total compensation expense not yet recognized related to non-vested stock options was $1.7 million and the weighted-average period in which the remaining expense is expected to be recognized was 2.7 years. | |||||||||||||||||
The Company estimated the fair value of option awards on the date of grant using the Black-Scholes option valuation model and the following assumptions: | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Weighted average fair value of options | $ | 10.21 | $ | 7.76 | $ | 4.26 | |||||||||||
Expected life of awards in years | 6.3 | 6.3 | 6.3 | ||||||||||||||
Risk-free interest rate | 2.1 | % | 1.3 | % | 0.9 | % | |||||||||||
Expected volatility of the Company's stock | 76.1 | % | 88.7 | % | 87.4 | % | |||||||||||
Expected dividend yield on the Company's stock | 0 | % | 0 | % | 0 | % | |||||||||||
Stock options expire no later than 10 years after the grant date and have an exercise price equal to the fair market value of the common stock on the date of grant. The risk-free interest rate was based on yields of U.S. Treasury zero-coupon issues with a term corresponding to the expected life of the options. The expected volatility assumption was based on changes in the Company’s historical common stock prices over the same time frame as the expected life of the awards. The expected dividend yield is zero as the Company currently does not anticipate paying dividends over the expected life of the options. The expected lives of the awards are based on historical patterns and the terms of the options. Outstanding options granted during fiscal 2015 and fiscal 2014 vest 25 percent annually for four years. All outstanding options granted prior to fiscal 2014 vested 25 percent on the grant date and 25 percent annually thereafter for the subsequent three years. The Company used a pre-vesting forfeiture rate of 2.5 percent for these periods as an estimate of expected forfeitures prior to completing the required service period. | |||||||||||||||||
A summary of stock option activity for fiscal 2015 was as follows: | |||||||||||||||||
Shares | Weighted average | Weighted average | Aggregate | ||||||||||||||
exercise price | remaining contractual | intrinsic value | |||||||||||||||
term (years) | |||||||||||||||||
Outstanding, beginning | 1.6 | $ | 13.15 | ||||||||||||||
Granted | 0.1 | 14.94 | |||||||||||||||
Exercised | (0.1 | ) | 8.71 | ||||||||||||||
Forfeited or expired | (0.1 | ) | 29.41 | ||||||||||||||
Outstanding, ending | 1.5 | $ | 11.99 | 5.3 | $ | 5.7 | |||||||||||
Exercisable, March 31, 2015 | 1.2 | $ | 12.13 | 4.5 | $ | 4.9 | |||||||||||
The aggregate intrinsic value represents the difference between the closing price of Modine’s common shares on the last trading day of fiscal 2015 over the exercise price of the stock options, multiplied by the number of options outstanding or exercisable. The aggregate intrinsic value is not recorded for financial statement purposes, and this value will change based upon daily changes in the fair value of Modine’s common shares. | |||||||||||||||||
Additional information related to stock options exercised during fiscal 2015, 2014, and 2013 was as follows: | |||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Intrinsic value of stock options exercised | $ | 0.4 | $ | 1.1 | $ | 0.1 | |||||||||||
Proceeds from stock options exercised | $ | 0.6 | $ | 1.1 | $ | 0.1 | |||||||||||
Restricted Stock: The Company recorded $2.8 million, $2.2 million, and $1.8 million of compensation expense related to restricted stock in fiscal 2015, 2014 and 2013, respectively. The fair value of restricted stock awards that vested during fiscal 2015, 2014, and 2013 was $2.3 million, $1.6 million, and $1.3 million, respectively. At March 31, 2015, the Company had $4.6 million of total unrecognized compensation expense related to non-vested restricted stock, which it expects to recognize over a weighted-average period of 2.5 years. The Company values restricted stock awards using the closing market value of its common shares on the date of grant. The restricted stock awards vest 25 percent annually for four years, with the exception of awards to non-employee directors, which fully vest upon grant. | |||||||||||||||||
A summary of restricted stock activity for fiscal 2015 was as follows: | |||||||||||||||||
Shares | Weighted | ||||||||||||||||
average | |||||||||||||||||
price | |||||||||||||||||
Non-vested balance, beginning | 0.6 | $ | 8.66 | ||||||||||||||
Granted | 0.3 | 14.92 | |||||||||||||||
Vested | (0.2 | ) | 9.73 | ||||||||||||||
Non-vested balance, ending | 0.7 | $ | 10.68 | ||||||||||||||
Restricted Stock – Performance-Based Shares: The Company recorded $0.3 million, $0.6 million and $0.2 million of compensation expense related to performance-based stock awards in fiscal 2015, 2014 and 2013, respectively. At March 31, 2015, the Company had $1.6 million of total unrecognized compensation expense related to non-vested performance-based stock awards, which is expected to be recognized over a weighted-average period of 1.8 years. The Company values performance-based stock awards using the closing market value of its common shares at the date of grant. | |||||||||||||||||
Shares are earned under the performance portion of the restricted stock award program based upon the attainment of certain financial goals over a three-year period and are awarded at the end of that three-year performance period, if the performance targets have been achieved. A new performance period may begin each fiscal year; therefore, multiple performance periods, with distinct goals, may operate simultaneously. | |||||||||||||||||
The performance component of the program initiated in fiscal 2015 was based upon both a target three-year average consolidated return on average capital employed (“ROACE”) and a target three-year average annual revenue growth, at the end of the three-year performance period covering fiscal 2015 through fiscal 2017. For the program initiated in fiscal 2014, the performance award was based upon a target three-year average ROACE, three-year average annual revenue growth, and Asia segment operating income at the end of the three-year performance period. For the program initiated in fiscal 2013, the performance award was based upon a target three-year average consolidated ROACE, cumulative revenue over the three-year performance period and Europe ROACE at the end of the three-year performance period. |
Restructuring_Activities
Restructuring Activities | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Restructuring and Impairment Charges [Abstract] | |||||||||||||
Restructuring and Impairment Charges | Note 6: Restructuring Activities | ||||||||||||
During fiscal 2015, the Company implemented a headcount reduction plan within its South America segment. The headcount reductions were in response to the economic slowdown in Brazil and reflect the Company’s objective to maintain profitability in the segment despite lower sales volume. | |||||||||||||
During fiscal 2014, the Company approved a plan to close its McHenry, Illinois manufacturing facility, reflecting its focus on operating scale manufacturing facilities to improve overall competitiveness and profitability. The Company is in the process of transferring the facility’s production to other existing North America segment manufacturing facilities. | |||||||||||||
During fiscal 2013, the Company initiated restructuring activities within its Europe segment. The restructuring activities have included exiting certain non-core product lines based upon Modine’s global product strategy, reducing manufacturing costs, consolidating production facilities, implementing headcount reductions, and disposing of and selling certain underperforming or non-strategic assets. The activities were designed to align the cost structure of the segment with its strategic focus on the commercial vehicle, off-highway, automotive component, and engine product markets, while improving gross margin and return on average capital employed. | |||||||||||||
Restructuring and repositioning expenses for fiscal 2015, 2014, and 2013 were as follows: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Employee severance and related benefits | $ | 1.2 | $ | 14.8 | $ | 14.9 | |||||||
Accelerated depreciation | - | 4.3 | - | ||||||||||
Other restructuring and repositioning expenses | 3.5 | 1.3 | 2.1 | ||||||||||
Total | $ | 4.7 | $ | 20.4 | $ | 17 | |||||||
During fiscal 2015, 2014, and 2013, the Company recorded $4.7 million, $16.1 million and $17.0 million, respectively, of restructuring and repositioning expenses as restructuring expenses in the consolidated statement of operations. During fiscal 2014, the Company recorded $4.3 million of restructuring and repositioning expenses within cost of sales in the consolidated statement of operations. | |||||||||||||
The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Beginning balance | $ | 19.4 | $ | 11.6 | |||||||||
Additions | 1.2 | 14.8 | |||||||||||
Payments | (7.3 | ) | (7.8 | ) | |||||||||
Effect of exchange rate changes | (3.4 | ) | 0.8 | ||||||||||
Ending balance | $ | 9.9 | $ | 19.4 | |||||||||
During fiscal 2014, the Company recorded asset impairment charges totaling $3.2 million, including $2.0 million within its Europe segment, primarily due to a manufacturing facility in Germany that the Company plans to close, and $1.2 million within its North America segment, related to the planned closure of its McHenry, Illinois manufacturing facility. During fiscal 2013, the Company recorded asset impairment charges of $24.1 and $1.8 million within its Europe and North America segments, respectively, to reduce the carrying values of certain facilities held for sale to their estimated fair values, less costs to sell. | |||||||||||||
During fiscal 2015, the Company sold a wind tunnel within its Europe segment, which was previously reported as an asset held for sale, for cash proceeds of $5.8 million and recognized a gain of $3.2 million. Also during fiscal 2015, the Company reclassified $4.7 million of its assets held for sale to property, plant and equipment, related to a facility in the Europe segment that is no longer being actively marketed for sale. At March 31, 2015 and 2014, assets held for sale of $3.2 million and $11.6 million, respectively, were included in other noncurrent assets and consisted of facilities that the Company is marketing for sale. | |||||||||||||
In April 2015, the Company announced its intent to close its Washington, Iowa manufacturing facility within the North America segment. As a result of the planned closure, the Company expects to incur approximately $2.0 million of employee severance-related costs during fiscal 2016 and additional restructuring and repositioning expenses during the closure period, as production is transferred to other facilities within the North America segment. |
Other_Income_and_Expense
Other Income and Expense | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Other Income and Expense [Abstract] | |||||||||||||
Other Income and Expense | Note 7: | Other Income and Expense | |||||||||||
Other income and expense consisted of the following: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Equity in earnings of non-consolidated affiliate | $ | 0.6 | $ | 0.7 | $ | 0.3 | |||||||
Interest income | 0.5 | 0.5 | 0.9 | ||||||||||
Foreign currency transactions | (0.9 | ) | (2.0 | ) | (1.1 | ) | |||||||
Other non-operating income - net | - | - | 0.1 | ||||||||||
Total other income (expense) - net | $ | 0.2 | $ | (0.8 | ) | $ | 0.2 | ||||||
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 loans and transactions denominated in a foreign currency, along with gains and losses on foreign currency exchange contracts. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Income Taxes | Note 8: Income Taxes | ||||||||||||
The U.S. and foreign components of earnings (loss) from continuing operations before income taxes and the provision (benefit) for income taxes consisted of the following: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Components of earnings (loss) from continuing operations before income taxes: | |||||||||||||
United States | $ | 31.1 | $ | 14.1 | $ | 10.2 | |||||||
Foreign | 10.1 | 9.9 | (23.2 | ) | |||||||||
Total earnings (loss) from continuing operations before income taxes | $ | 41.2 | $ | 24 | $ | (13.0 | ) | ||||||
Income tax expense (benefit): | |||||||||||||
Federal: | |||||||||||||
Current | $ | 0.4 | $ | (2.0 | ) | $ | 2.6 | ||||||
Deferred | 7.1 | (95.8 | ) | (2.6 | ) | ||||||||
State: | |||||||||||||
Current | - | 0.2 | 0.2 | ||||||||||
Deferred | 1.1 | (21.4 | ) | (0.2 | ) | ||||||||
Foreign: | |||||||||||||
Current | 12.7 | 10 | 6.4 | ||||||||||
Deferred | (2.3 | ) | 1.1 | 3.4 | |||||||||
Total income tax expense (benefit) | $ | 19 | $ | (107.9 | ) | $ | 9.8 | ||||||
The Company allocates income tax expense among continuing operations, discontinued operations, and other comprehensive income. The Company applies accounting for income taxes by tax jurisdiction, and in periods in which there is a loss from continuing operations before income taxes and pre-tax income in other categories (e.g., discontinued operations or other comprehensive income), it first allocates income tax expense to the other sources of income, and records a related tax benefit in continuing operations. | |||||||||||||
Income tax expense attributable to earnings (loss) from continuing operations before income taxes differed from the amounts computed by applying the statutory U.S. federal income tax rate as a result of the following: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Statutory federal tax | 35 | % | 35 | % | 35 | % | |||||||
State taxes, net of federal benefit | 2.4 | 2.1 | (1.3 | ) | |||||||||
Taxes on non-U.S. earnings and losses | (4.9 | ) | (3.8 | ) | (23.8 | ) | |||||||
Valuation allowance | 8.3 | (471.7 | ) | (59.3 | ) | ||||||||
Tax credits | (6.1 | ) | (7.1 | ) | 37 | ||||||||
Compensation | 1 | 0.4 | (13.0 | ) | |||||||||
Tax rate or law changes | 1.2 | (9.2 | ) | 0.9 | |||||||||
Uncertain tax positions net of settlements | 2.2 | 0.4 | (41.9 | ) | |||||||||
Brazil interest on equity | - | (1.7 | ) | 3.2 | |||||||||
Dividend repatriation | 2.4 | 5.8 | (11.4 | ) | |||||||||
Other | 4.6 | 0.2 | (0.8 | ) | |||||||||
Effective tax rate | 46.1 | % | (449.6 | %) | (75.4 | %) | |||||||
The Company recorded an additional valuation allowance of $2.6 million and $12.3 million in fiscal 2015 and 2014, respectively, against net deferred tax assets in certain foreign jurisdictions after determining it was more likely than not that the net deferred tax assets in these jurisdictions will not be realized. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions going forward 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. | |||||||||||||
During fiscal 2014, the Company concluded it no longer needed a valuation allowance on certain U.S. deferred tax assets after determining it was more likely than not they would be realized. As a result, the Company recorded a $119.2 million reversal of its deferred tax asset valuation allowance. Also during fiscal 2014, the Company recorded income tax benefits totaling $2.2 million related to foreign tax law changes. | |||||||||||||
The tax effects of temporary differences that gave rise to deferred tax assets and liabilities were as follows: | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accounts receivable | $ | 0.3 | $ | 0.2 | |||||||||
Inventories | 3.8 | 4.1 | |||||||||||
Plant and equipment | 0.8 | 2.4 | |||||||||||
Pension and employee benefits | 50.5 | 39.1 | |||||||||||
Net operating loss, capital loss, and credit carryforwards | 105 | 122.4 | |||||||||||
Other, principally accrued liabilities | 6.8 | 10.3 | |||||||||||
Total gross deferred tax assets | 167.2 | 178.5 | |||||||||||
Less: valuation allowance | (48.0 | ) | (61.2 | ) | |||||||||
Net deferred tax assets | 119.2 | 117.3 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Goodwill | 0.6 | 4.2 | |||||||||||
Plant and equipment | 5.3 | 7.6 | |||||||||||
Other | 1 | 1.7 | |||||||||||
Total gross deferred tax liabilities | 6.9 | 13.5 | |||||||||||
Net deferred tax asset | $ | 112.3 | $ | 103.8 | |||||||||
Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows: | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Current deferred tax asset | $ | 13.4 | $ | 13 | |||||||||
Noncurrent deferred tax asset | 102.7 | 98.6 | |||||||||||
Current deferred tax liability (other current liabilities) | (0.4 | ) | (0.5 | ) | |||||||||
Noncurrent deferred tax liability | (3.4 | ) | (7.3 | ) | |||||||||
Total | $ | 112.3 | $ | 103.8 | |||||||||
Unrecognized tax benefits were as follows: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Beginning balance | $ | 2.1 | $ | 9 | |||||||||
Gross increases - tax positions in prior period | 3.1 | 2.5 | |||||||||||
Gross decreases - tax positions in prior period | - | (7.0 | ) | ||||||||||
Gross increases - tax positions in current period | 0.4 | 0.1 | |||||||||||
Settlements | - | (1.9 | ) | ||||||||||
Lapse of statute of limitations | - | (0.8 | ) | ||||||||||
Effect of exchange rate changes | - | 0.2 | |||||||||||
Ending balance | $ | 5.6 | $ | 2.1 | |||||||||
The Company’s liability for unrecognized tax benefits as of March 31, 2015 was $5.6 million, and if recognized, $3.0 million would have an effective tax rate impact. | |||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. At March 31, 2015 and 2014, accrued interest and penalties were not significant. | |||||||||||||
The Company files income tax returns in multiple jurisdictions and is subject to examination by taxing authorities throughout the world. At March 31, 2015, the Company was under income tax examination in a number of foreign jurisdictions. The Company does not anticipate a significant change in unrecognized tax benefits during the next twelve months. | |||||||||||||
The following tax years remain subject to examination for the Company’s major tax jurisdictions: | |||||||||||||
Austria | Fiscal 2012 - 2014 | ||||||||||||
Brazil | Calendar 2010 - 2014 | ||||||||||||
Germany | Fiscal 2011 - 2014 | ||||||||||||
United States | Fiscal 2012 – 2014 | ||||||||||||
At March 31, 2015, the Company had foreign tax credit carry forwards of $1.8 million that, if not utilized against domestic taxes, will expire in fiscal 2016 and 2017. The Company also had federal and state research and development tax credits of $20.9 million that, if not utilized against domestic taxes, will expire between fiscal 2018 and 2035. The Company also had various state and local tax loss carry forwards of $186.0 million that, if not utilized against state apportioned taxable income, will expire at various times during fiscal 2016 through 2034. In addition, the Company had tax loss carry forwards of $304.6 million in various tax jurisdictions throughout the world. Certain of the carry forwards in the U.S. and many in foreign jurisdictions are offset by a valuation allowance. If not utilized against taxable income, $159.3 million of these tax losses will expire at various times during fiscal 2016 through 2035, and $145.3 million, mainly related to India, Austria and Germany, will not expire due to an unlimited carry-forward period. | |||||||||||||
At March 31, 2015, the Company provided $0.8 million of tax on undistributed earnings for certain subsidiaries not considered permanently reinvested. Undistributed earnings totaling $442.0 million are considered permanently reinvested in the remaining foreign operations, and no provision has been made for any taxes that would be payable upon the distribution of such earnings. It is not practicable to estimate the amount of unrecognized withholding taxes and deferred tax liability on such earnings. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | Note 9: | Earnings Per Share | |||||||||||
The components of basic and diluted earnings per share are as follows: | |||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Basic: | |||||||||||||
Earnings (loss) from continuing operations | $ | 22.2 | $ | 131.9 | $ | (22.8 | ) | ||||||
Less: Net earnings attributable to noncontrolling interest | (1.0 | ) | (1.5 | ) | (1.4 | ) | |||||||
Less: Undistributed earnings attributable to unvested shares | (0.2 | ) | (1.7 | ) | - | ||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 21 | 128.7 | (24.2 | ) | |||||||||
Earnings from discontinued operations, net of income taxes | 0.6 | - | - | ||||||||||
Net earnings (loss) available to Modine shareholders | $ | 21.6 | $ | 128.7 | $ | (24.2 | ) | ||||||
Weighted average shares outstanding - basic | 47.2 | 46.9 | 46.6 | ||||||||||
Basic Earnings Per Share: | |||||||||||||
Earnings (loss) per share - continuing operations | $ | 0.45 | $ | 2.75 | $ | (0.52 | ) | ||||||
Earnings per share - discontinued operations | 0.01 | - | - | ||||||||||
Net earnings (loss) per share - basic | $ | 0.46 | $ | 2.75 | $ | (0.52 | ) | ||||||
Diluted: | |||||||||||||
Earnings (loss) from continuing operations | $ | 22.2 | $ | 131.9 | $ | (22.8 | ) | ||||||
Less: Net earnings attributable to noncontrolling interest | (1.0 | ) | (1.5 | ) | (1.4 | ) | |||||||
Less: Undistributed earnings attributable to unvested shares | (0.2 | ) | (0.9 | ) | - | ||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 21 | 129.5 | (24.2 | ) | |||||||||
Earnings from discontinued operations, net of income taxes | 0.6 | - | - | ||||||||||
Net earnings (loss) available to Modine shareholders | $ | 21.6 | $ | 129.5 | $ | (24.2 | ) | ||||||
Weighted average shares outstanding - basic | 47.2 | 46.9 | 46.6 | ||||||||||
Effect of dilutive securities | 0.6 | 0.7 | - | ||||||||||
Weighted average shares outstanding - diluted | 47.8 | 47.6 | 46.6 | ||||||||||
Diluted Earnings Per Share: | |||||||||||||
Earnings (loss) per share - continuing operations | $ | 0.44 | $ | 2.72 | $ | (0.52 | ) | ||||||
Earnings per share - discontinued operations | 0.01 | - | - | ||||||||||
Net earnings (loss) per share - diluted | $ | 0.45 | $ | 2.72 | $ | (0.52 | ) | ||||||
For the years ended March 31, 2015, 2014, and 2013, the calculation of diluted earnings per share excluded 0.6 million, 0.8 million, and 1.1 million stock options, respectively, because they were anti-dilutive. For the year ended March 31, 2013, 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 decrease the loss per share. |
Inventories
Inventories | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 10: Inventories | ||||||||
Inventories consisted of the following: | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Raw materials and work in process | $ | 80.7 | $ | 89.2 | |||||
Finished goods | 27 | 27.6 | |||||||
Total inventories | $ | 107.7 | $ | 116.8 |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | Note 11: Property, Plant and Equipment | ||||||||
Property, plant and equipment, including depreciable lives, consisted of the following: | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Land | $ | 8.2 | $ | 10.4 | |||||
Buildings and improvements (10-40 years) | 221 | 228.1 | |||||||
Machinery and equipment (3-12 years) | 652 | 715.1 | |||||||
Office equipment (3-10 years) | 81.9 | 89.5 | |||||||
Construction in progress | 31.7 | 35.5 | |||||||
994.8 | 1,078.60 | ||||||||
Less: accumulated depreciation | (672.7 | ) | (719.0 | ) | |||||
Net property, plant and equipment | $ | 322.1 | $ | 359.6 | |||||
Depreciation expense totaled $50.0 million, $57.3 million and $55.1 million for the years ended March 31, 2015, 2014, and 2013, respectively. Gains and losses related to the disposal of property, plant and equipment are recorded in SG&A expenses. Total losses related to the disposal of property, plant and equipment were $1.1 million, $2.6 million and $2.5 million for the years ended March 31, 2015, 2014, and 2013, respectively. |
Investment_in_Affiliate
Investment in Affiliate | 12 Months Ended |
Mar. 31, 2015 | |
Investment in Affiliate [Abstract] | |
Investment in Affiliate | Note 12: Investment in Affiliate |
The Company’s investment in its non-consolidated affiliate is accounted for under the equity method. The Company has a 50 percent ownership of Nikkei Heat Exchanger Company, Ltd. (“NEX”). At March 31, 2015 and 2014, the Company included the investment in NEX of $3.2 million and $3.4 million, respectively, in other noncurrent assets. At March 31, 2015, the investment in NEX is equal to the Company's investment in the underlying assets. | |
The Company reports the results of operations for NEX in the consolidated financial statements using a one-month reporting delay. The Company reports equity in earnings from non-consolidated affiliates within other income and expense in the consolidated statements of operations. The Company’s share of NEX’s earnings for the years ended March 31, 2015, 2014, and 2013 was $0.6 million, $0.7 million and $0.3 million, respectively. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Intangible Assets [Abstract] | |||||||||||||||||||||||||
Intangible Assets | Note 13: Intangible Assets | ||||||||||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Value | Assets | Value | Assets | ||||||||||||||||||||||
Trade names | $ | 9.1 | $ | (5.8 | ) | $ | 3.3 | $ | 10.1 | $ | (5.7 | ) | $ | 4.4 | |||||||||||
Acquired technology | 5.6 | (0.9 | ) | 4.7 | 5.8 | (0.2 | ) | 5.6 | |||||||||||||||||
Customer relationships | 2.1 | (0.2 | ) | 1.9 | 2.4 | - | 2.4 | ||||||||||||||||||
Total intangible assets | $ | 16.8 | $ | (6.9 | ) | $ | 9.9 | $ | 18.3 | $ | (5.9 | ) | $ | 12.4 | |||||||||||
The Company recorded $1.6 million, $0.8 million and $0.7 million of amortization expense during fiscal 2015, 2014 and 2013, respectively. Estimated future amortization expense is as follows: | |||||||||||||||||||||||||
Fiscal Year | Estimated | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||
2016 | $ | 1.6 | |||||||||||||||||||||||
2017 | 1.6 | ||||||||||||||||||||||||
2018 | 1.6 | ||||||||||||||||||||||||
2019 | 1.5 | ||||||||||||||||||||||||
2020 | 1.4 | ||||||||||||||||||||||||
2021 & Beyond | 2.2 |
Goodwill
Goodwill | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Goodwill [Abstract] | |||||||||||||||||
Goodwill | Note 14: Goodwill | ||||||||||||||||
Changes in the carrying amount of goodwill, by segment and in the aggregate, were as follows: | |||||||||||||||||
South | Building | ||||||||||||||||
America | Asia | HVAC | Total | ||||||||||||||
Balance, March 31, 2013 | $ | 12.2 | $ | 0.5 | $ | 16 | $ | 28.7 | |||||||||
Effect of exchange rate changes | (1.3 | ) | - | 1.3 | - | ||||||||||||
Balance, March 31, 2014 | 10.9 | 0.5 | 17.3 | 28.7 | |||||||||||||
Impairment charge | (7.8 | ) | - | - | (7.8 | ) | |||||||||||
Effect of exchange rate changes | (3.1 | ) | - | (1.6 | ) | (4.7 | ) | ||||||||||
Balance, March 31, 2015 | $ | - | $ | 0.5 | $ | 15.7 | $ | 16.2 | |||||||||
The Company assesses goodwill for impairment annually, or more frequently if events or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below its carrying value. The Company conducted its annual assessment for goodwill impairment during the fourth quarter of fiscal 2015 by applying a fair value-based test. The Company determined its South America reporting unit’s goodwill was fully impaired and recorded a $7.8 million goodwill impairment charge as a result. The impairment charge was primarily caused by a decline in the financial outlook for the South America reporting unit. During the fourth quarter of fiscal 2015, the Company’s outlook for the markets served by its South America reporting unit, primarily Brazil, shifted from a view that the markets may begin to recover to a view that the market downturn may be prolonged. The economic weakness in Brazil has negatively affected the Company’s expected future cash flows for the South American segment.The fair value of the Company’s remaining reporting units exceeded their respective book values. | |||||||||||||||||
As of March 31, 2015, accumulated goodwill impairment losses within the South America segment totaled $7.8 million. As of March 31, 2015 and 2014, accumulated goodwill impairment losses totaled $23.8 million and $8.7 million within the North America and Europe segments, respectively. |
Product_Warranties_Operating_L
Product Warranties, Operating Leases and Other Commitments | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranties, Operating Leases and Other Commitments [Abstract] | |||||||||
Product Warranties, Operating Leases and Other Commitments | Note 15: Product Warranties, Operating Leases, and Other Commitments | ||||||||
Product warranties: Modine provides product warranties for various product lines, with warranty periods generally ranging from one to five years. The Company accrues for estimated future warranty costs in the period in which the sale is recorded. The Company bases warranty expense estimates on the best information available using analytical and statistical analysis of both historical and current claim data. The Company adjusts these expenses if it becomes probable that expected claims will differ from initial estimates recorded at the time of sale. | |||||||||
Changes in accrued warranty costs were as follows: | |||||||||
Years ended March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning balance | $ | 14 | $ | 12.6 | |||||
Accruals for warranties issued | 5.8 | 6 | |||||||
Accruals related to pre-existing warranties | 1.5 | 8.3 | |||||||
Settlements | (9.2 | ) | (13.0 | ) | |||||
Effect of exchange rate changes | (1.7 | ) | 0.1 | ||||||
Ending balance | $ | 10.4 | $ | 14 | |||||
Operating leases: The Company leases various facilities and equipment under operating leases. Rental expense for these leases totaled $11.5 million in both fiscal 2015 and 2014, and $11.3 million in fiscal 2013. | |||||||||
Future minimum rental commitments at March 31, 2015 under non-cancelable operating leases were as follows: | |||||||||
Fiscal Year | |||||||||
2016 | $ | 8.2 | |||||||
2017 | 5.7 | ||||||||
2018 | 4.3 | ||||||||
2019 | 3.8 | ||||||||
2020 | 4 | ||||||||
2021 and beyond | 23.9 | ||||||||
Total | $ | 49.9 | |||||||
Indemnification agreements: From time to time, the Company provides indemnification agreements related to the sale or purchase of an entity or facility. These indemnification agreements cover customary representations and warranties typically provided in conjunction with such transactions, including income, sales, excise or other tax matters, environmental matters and other third-party claims. The indemnification periods provided generally range from less than one year to fifteen years. In addition, standard indemnification provisions reside in many commercial agreements to which the Company is a party and relate to responsibility in the event of potential third-party claims. The fair value of the Company’s outstanding indemnification obligations at March 31, 2015 is not material. | |||||||||
Commitments: At March 31, 2015, the Company had capital expenditure commitments of $15.5 million. Significant commitments include tooling and equipment expenditures for new and renewal programs with customers in North America and Europe. The Company utilizes inventory arrangements with certain vendors in the normal course of business under which the vendors maintain inventory stock at the Company’s facilities or at outside facilities. Title passes to the Company at the time goods are withdrawn for use in production. The Company has agreements with the vendors to use the material within a specific period of time. In some cases, the Company bears the risk of loss for the inventory because Modine is required to insure the inventory against damage and/or theft. This inventory is included within the Company’s consolidated balance sheets as raw materials inventory. | |||||||||
The Company has a commitment to rebuild the leased Airedale facility, which suffered significant destruction from a fire during fiscal 2014. The Company maintains insurance coverage and believes reimbursement for substantially all losses and costs directly attributable to the fire is probable. See Note 2 for additional information. |
Indebtedness
Indebtedness | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Indebtedness [Abstract] | ||||||||||||
Indebtedness | Note 16: Indebtedness | |||||||||||
Long-term debt was comprised of the following: | ||||||||||||
Fiscal year | 31-Mar-15 | 31-Mar-14 | ||||||||||
of maturity | ||||||||||||
Foreign credit agreements | 2016 | $ | 0.2 | $ | 0.5 | |||||||
6.8% Senior Notes | 2017-2021 | 125 | 125 | |||||||||
Revolving credit facility | 2019 | - | - | |||||||||
125.2 | 125.5 | |||||||||||
Capital lease obligations | 2016-2030 | 4.9 | 6.5 | |||||||||
130.1 | 132 | |||||||||||
Less: current portion | (0.5 | ) | (0.8 | ) | ||||||||
Total long-term debt | $ | 129.6 | $ | 131.2 | ||||||||
The Company maintains a $175.0 million domestic revolving credit facility, which expires in August 2018. Borrowings under the credit agreement bear interest at a variable rate based on the London Interbank Offered Rate (“LIBOR”) plus 125 to 225 basis points (1.6 percent at March 31, 2015) depending upon the Company’s leverage ratio, as defined below. At March 31, 2015 and 2014, no borrowings were outstanding under the revolving credit facility. | ||||||||||||
The Company also maintains credit agreements for its foreign subsidiaries, with outstanding short-term borrowings at March 31, 2015 and 2014 of $18.6 million and $32.4 million, respectively. At March 31, 2015, the Company’s foreign unused lines of credit totaled $41.0 million. In aggregate, the Company had total available lines of credit of $216.0 million at March 31, 2015. | ||||||||||||
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 its primary debt agreements in the U.S., the Company has provided a lien on substantially all domestic assets. The Company is also subject to a leverage ratio covenant, which requires the Company to limit its consolidated indebtedness, less a 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 EBITDA”), and an interest expense coverage ratio, which requires the Company to maintain Adjusted EBITDA of at least three times consolidated interest expense. The Company was in compliance with its debt covenants as of March 31, 2015. | ||||||||||||
Long-term debt matures as follows: | ||||||||||||
Fiscal Year | ||||||||||||
2016 | $ | 0.5 | ||||||||||
2017 | 8.3 | |||||||||||
2018 | 16.3 | |||||||||||
2019 | 16.3 | |||||||||||
2020 | 16.3 | |||||||||||
2021 & beyond | 72.4 | |||||||||||
Total | $ | 130.1 | ||||||||||
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 March 31, 2015 and 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 4 for the definition of a Level 2 fair value measurement. |
Pension_and_Employee_Benefit_P
Pension and Employee Benefit Plans | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Pension and Employee Benefit Plans [Abstract] | |||||||||||||
Pension and Employee Benefit Plans | Note 17: Pension and Employee Benefit Plans | ||||||||||||
Defined Contribution Employee Benefit Plans: | |||||||||||||
The Company maintains domestic 401(k) plans that allow employees to contribute a portion of their salary to help save for retirement. The Company matched 50 percent of employee contributions, up to 5 percent of employee compensation, during fiscal 2015, 2014, and 2013. The Company also makes annual employer contributions into active employee accounts based upon a percentage of employee compensation. Employees can choose among various investment alternatives, including (subject to restrictions) Modine stock. The Company’s matching contributions and annual employer contributions are discretionary. The Company’s expense for defined contribution employee benefit plans during fiscal 2015, 2014, and 2013 was $5.9 million, $8.3 million, and $4.1 million, respectively. The decrease in expense in fiscal 2015, as compared with the prior fiscal year, was primarily due to lower discretionary employer contributions. | |||||||||||||
In addition, the Company maintains a non-qualified deferred compensation plan for eligible employees and various foreign subsidiaries have government-required defined contribution plans in place, under which they contribute a percentage of employee earnings into accounts, consistent with local laws. | |||||||||||||
Statutory Termination Plans: | |||||||||||||
Certain foreign subsidiaries have statutory termination indemnity plans covering eligible employees. The benefits under these plans are based upon years of service and final average compensation levels or a monthly retirement benefit amount. These programs are all substantially unfunded in accordance with local laws, but are often covered by national obligatory umbrella insurance programs that protect employees from losses in the event that an employer defaults on its obligations. | |||||||||||||
Defined Benefit Employee Benefit Plans: | |||||||||||||
Pension plans: The Company has a non-contributory defined benefit pension plan that covers most of its domestic employees hired on or before December 31, 2003. The benefits provided are based primarily on years of service and average compensation for salaried and some hourly employees. Benefits for other hourly employees are based on a monthly retirement benefit amount. Domestic salaried employees hired after December 31, 2003 are not covered under any defined benefit plan. Currently, the Company’s domestic pension plans do not include increases in annual earnings or future service in calculating the average annual earnings and years of credited service under the pension plan benefit formula. Certain of the Company’s foreign subsidiaries also have legacy defined benefit plans covering a small number of active employees. | |||||||||||||
Company contributions of $5.9 million, $8.0 million, and $9.2 million to U.S. pension plans during fiscal 2015, 2014, and 2013, respectively, are reported in the change in other liabilities in the consolidated statements of cash flows. | |||||||||||||
Postretirement plans: The Company provides selected healthcare and life insurance benefits for eligible retired domestic employees. The Company periodically amends these unfunded plans to change the contribution rate of retirees and the amounts and forms of coverage. An annual limit on the Company’s cost is defined for the majority of these plans. The Company’s net periodic income for its postretirement plans during fiscal 2015, 2014 and 2013 was $0.1 million, $1.0 million, and $1.1 million, respectively. | |||||||||||||
Measurement Date: The Company uses March 31 as the measurement date for its pension and postretirement plans. | |||||||||||||
Changes in benefit obligations and plan assets as well as the funded status of the Company’s pension plans for the fiscal years ended March 31, 2015 and 2014 were as follows: | |||||||||||||
2015 | 2014 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 295.7 | $ | 309.6 | |||||||||
Service cost | 0.5 | 0.6 | |||||||||||
Interest cost | 13 | 13 | |||||||||||
Actuarial loss (gain) | 40.6 | (10.8 | ) | ||||||||||
Benefits paid | (14.6 | ) | (18.6 | ) | |||||||||
Effect of exchange rate changes | (7.0 | ) | 1.9 | ||||||||||
Benefit obligation at end of year | $ | 328.2 | $ | 295.7 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 213.7 | $ | 200.6 | |||||||||
Actual return on plan assets | 10.8 | 22.2 | |||||||||||
Benefits paid | (14.6 | ) | (18.6 | ) | |||||||||
Employer contributions | 7.1 | 9.5 | |||||||||||
Fair value of plan assets at end of year | $ | 217 | $ | 213.7 | |||||||||
Funded status at end of year | $ | (111.2 | ) | $ | (82.0 | ) | |||||||
Amounts recognized in the consolidated balance sheets: | |||||||||||||
Current liability | $ | (0.8 | ) | $ | (1.0 | ) | |||||||
Noncurrent liability | (110.4 | ) | (81.0 | ) | |||||||||
$ | (111.2 | ) | $ | (82.0 | ) | ||||||||
The accumulated benefit obligation for pension plans was $325.5 million and $293.0 million as of March 31, 2015 and 2014, respectively. The net actuarial loss related to the pension plans recognized in accumulated other comprehensive loss was $192.3 million and $153.4 million as of March 31, 2015 and 2014, respectively. | |||||||||||||
Costs for the Company’s pension plans included the following components for the fiscal years ended March 31, 2015, 2014, and 2013: | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 0.5 | $ | 0.6 | $ | 0.6 | |||||||
Interest cost | 13 | 13 | 13.5 | ||||||||||
Expected return on plan assets | (16.7 | ) | (15.7 | ) | (16.1 | ) | |||||||
Amortization of net actuarial loss | 5.5 | 6.3 | 5 | ||||||||||
Net periodic benefit cost | $ | 2.3 | $ | 4.2 | $ | 3 | |||||||
Other changes in benefit obligation recognized in other comprehensive loss (income): | |||||||||||||
Net actuarial loss (gain) | $ | 46.4 | $ | (17.3 | ) | $ | 27 | ||||||
Amortization of net actuarial loss | (5.5 | ) | (6.3 | ) | (5.0 | ) | |||||||
Total recognized in other comprehensive loss (income) | $ | 40.9 | $ | (23.6 | ) | $ | 22 | ||||||
The Company estimates $7.2 million of net actuarial loss for its pension plans will be amortized from accumulated other comprehensive loss into net periodic benefit cost during fiscal 2016. | |||||||||||||
The Company used a discount rate of 4.0% and 4.7% as of March 31, 2015 and 2014, respectively, in determining its benefit obligations under its U.S. pension plans. The Company used a discount rate of 1.3% and 3.0% as of March 31, 2015 and 2014, respectively, in determining its benefit obligations under its foreign pension plans. The Company used a discount rate of 4.7%, 4.4%, and 4.9% to determine its costs under its U.S. pension plans for the fiscal years ended March 31, 2015, 2014, and 2013, respectively. The Company used a discount rate of 3.0%, 3.5%, and 5.0% to determine its costs under its foreign pension plans for the fiscal years ended March 31, 2015, 2014, and 2013, respectively. The Company determined the discount rates used for its U.S. pension plans by modeling a portfolio of high-quality corporate bonds, with appropriate consideration given to expected defined benefit payment terms and duration of the respective pension obligations. A similar process was used to determine the discount rate for the Company’s foreign pension obligations | |||||||||||||
Plan assets in the U.S. defined benefit plans comprise 100 percent of the Company’s world-wide pension plan assets. The Company’s U.S. pension plan weighted average asset allocations at the measurement dates of March 31, 2015 and 2014 were as follows: | |||||||||||||
Target allocation | Plan assets | ||||||||||||
2015 | 2014 | ||||||||||||
Equity securities | 55 | % | 55 | % | 57 | % | |||||||
Debt securities | 38 | % | 36 | % | 37 | % | |||||||
Alternative assets | 5 | % | 5 | % | 5 | % | |||||||
Cash | 2 | % | 4 | % | 1 | % | |||||||
100 | % | 100 | % | 100 | % | ||||||||
Due to market conditions and other factors, including timing of benefit payments and other transactions, actual asset allocation may vary from the target allocation outlined above. The Company periodically rebalances the assets to the target allocations. As of March 31, 2015 and 2014, the Company’s pension plans did not directly own shares of Modine common stock. | |||||||||||||
The Company employs a total return investment approach, whereby a mix of equities and fixed-income investments are used to maximize the long-term return of plan assets, while avoiding excessive risk. The Company has established pension plan guidelines based upon an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. The Company measures and monitors investment risk on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability studies. | |||||||||||||
The expected rate of return on U.S. plan assets is based upon historical return experience and forward-looking return expectations for major asset class categories. For fiscal 2015, 2014 and 2013 U.S. pension plan expense, the expected rate of return on plan assets was 8.0 percent. For fiscal 2016 U.S. pension plan expense, the Company has assumed a rate of return on plan assets of 8.0 percent. | |||||||||||||
The Company’s funding policy for domestic qualified pension plans is to contribute annually, at a minimum, the amount necessary on an actuarial basis to provide for benefits in accordance with applicable laws and regulations. The Company expects to make contributions of $6.7 million to these plans during fiscal 2016. | |||||||||||||
Estimated pension benefit payments for the next ten fiscal years are as follows: | |||||||||||||
Fiscal Year | Estimated pension | ||||||||||||
benefit payments | |||||||||||||
2016 | $ | 15.1 | |||||||||||
2017 | 15.7 | ||||||||||||
2018 | 16.9 | ||||||||||||
2019 | 17.2 | ||||||||||||
2020 | 18 | ||||||||||||
2021-2025 | 94 |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative Instruments [Abstract] | ||||||||||||||
Derivative Instruments | Note 18: Derivative Instruments | |||||||||||||
The Company uses derivative financial instruments from time to time as a tool to manage certain financial risks. The Company’s policy prohibits the use of leveraged derivatives. 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 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 was to reduce its exposure to changing market prices for future purchases of these commodities. The Company has not designated commodity contracts entered into in fiscal 2013, 2014, and 2015 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 (“AOCI”) related to those contracts remained in AOCI until the underlying commodity purchases impacted earnings. | ||||||||||||||
Foreign exchange contracts: The Company’s foreign exchange risk management strategy uses derivative financial instruments 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 changes 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-Mar-15 | 31-Mar-14 | ||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 0.3 | $ | 0.2 | |||||||||
Commodity derivatives | Other current liabilities | 0.1 | 0.1 | |||||||||||
Commodity derivatives | Other noncurrent liabilities | - | 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: | ||||||||||||||
31-Mar-15 | ||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Continuing Operations | Total Loss Recognized in Continuing Operations | |||||||||||
Operations Location | ||||||||||||||
Commodity derivatives | $ | - | Cost of sales | $ | - | $ | 0.2 | |||||||
Foreign exchange contracts | - | Other income (expense) - net | - | 1.1 | ||||||||||
Total | $ | - | $ | - | $ | 1.3 | ||||||||
31-Mar-14 | ||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Continuing Operations | Total Loss Recognized in Continuing Operations | |||||||||||
Operations Location | ||||||||||||||
Commodity derivatives | $ | - | Cost of sales | $ | 0.5 | $ | 0.5 | |||||||
Total | $ | - | $ | 0.5 | $ | 0.5 | ||||||||
31-Mar-13 | ||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Continuing Operations | Total Loss (Gain) Recognized in Continuing Operations | |||||||||||
Operations Location | ||||||||||||||
Commodity derivatives | $ | 0.5 | Cost of sales | $ | 2.6 | $ | 4.6 | |||||||
Foreign exchange contracts | - | Other income (expense) - net | - | (0.3 | ) | |||||||||
Total | $ | 0.5 | $ | 2.6 | $ | 4.3 |
Contingencies_and_Litigation
Contingencies and Litigation | 12 Months Ended | ||
Mar. 31, 2015 | |||
Contingencies and Litigation [Abstract] | |||
Contingencies and Litigation | Note 19: Contingencies and Litigation | ||
Market risk: The Company sells a broad range of products that provide thermal solutions to customers operating primarily in the commercial vehicle, off-highway, automotive, and commercial heating and air conditioning markets. The Company operates in diversified markets as a strategy for offsetting the risk associated with a downturn in any one or more of the markets it serves. The Company pursues new market opportunities after careful consideration of the potential associated risks and benefits. However, the risk associated with market downturns, such as the downturn experienced in fiscal 2009 and 2010, is still present. | |||
Credit risk: The Company invests excess cash primarily in investment quality, short-term liquid debt instruments. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of accounts receivable. The Company sells a broad range of products that provide thermal solutions to customers operating throughout the world. In fiscal 2015, two customers each accounted for ten percent or more of the Company’s total sales. In fiscal 2014 and 2013, one customer accounted for ten percent or more of the Company’s total sales. Sales to the Company’s top ten customers represented 63 percent, 56 percent, and 59 percent of total sales in fiscal 2015, 2014, and 2013, respectively. At March 31, 2015 and 2014, 47 percent and 46 percent, respectively, of the Company's trade accounts receivable were from the Company's top ten customers. These customers operate primarily in the automotive, truck, and heavy equipment markets and are influenced by similar market and general economic factors. Collateral or advanced payments are generally not required, but they may be used in those cases where the Company identifies a substantial credit risk. The Company has not experienced significant credit losses to customers in the markets served. | |||
The Company manages credit risk through its focus on the following: | |||
· | Cash and investments – reviewing cash deposits and short-term investments to ensure banks have credit ratings acceptable to the Company and that short-term investments are maintained in secured or guaranteed instruments; | ||
· | Accounts receivable – performing periodic customer credit evaluations and actively monitoring their financial condition and applicable business news; | ||
· | Pension assets – ensuring that investments within pension plans provide appropriate diversification, monitoring of investment teams, ensuring that portfolio managers adhere to the Company’s investment policies and directives, and ensuring that exposure to high risk investments is limited; and | ||
· | Insurance – ensuring that insurance providers maintain acceptable financial ratings. | ||
Counterparty risks: The Company manages counterparty risks through its focus on the following: | |||
· | Customers – performing thorough reviews of customer credit reports and accounts receivable aging reports by internal credit committees; | ||
· | Suppliers – maintaining a supplier risk management program and utilizing industry sources to identify and mitigate high risk situations; and | ||
· | Derivatives – ensuring that counterparties to derivative instruments maintain credit ratings that are acceptable to the Company. | ||
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 fiscal 2015, 2014, and 2013, the Company recorded reductions to SG&A expenses of $2.0 million, $2.9 million and $1.6 million, respectively, as a result of favorable changes to the estimated VAT obligations. | |||
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; however, they 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 its wholly-owned subsidiary in Brazil (“Modine 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 $3.8 million and $5.1 million at March 31, 2015 and 2014, respectively. As additional information becomes available, the Company will re-assess any potential liability related to these matters and revise the estimated accrual, if necessary. Based on currently available information, the Company believes 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 Brazil, seeking remediation and certain other damages as a result of the contamination allegedly attributable to the Company’s operations. The Company is defending this suit and believes that the ultimate outcome of this matter will not be material. | |||
Brazil antitrust investigation: During the fourth quarter of fiscal 2015, Brazil’s Administrative Council for Economic Defense (CADE) provided formal notice to Modine Brazil of an administrative investigation regarding alleged violations of Brazil’s antitrust regulations by Modine Brazil and certain of its employees during a period of time at least seven years ago. During the fourth quarter of fiscal 2015, the Company recorded a charge of $3.2 million (BRL10.0 million) within SG&A expenses, representing the estimated amount that may be incurred in connection with the management and resolution of this matter. Due to the ongoing nature of the investigation, the Company cannot provide assurance of the ultimate resolution of this matter at this time. | |||
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 | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Loss | Note 20: Accumulated Other Comprehensive Loss | ||||||||||||||||
Changes in accumulated other comprehensive loss were as follows: | |||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency Translation | Hedges | Benefit Plans | |||||||||||||||
Balance, March 31, 2014 | $ | 27.3 | $ | - | $ | (131.2 | ) | $ | (103.9 | ) | |||||||
Other comprehensive loss before reclassifications | (68.0 | ) | - | (45.2 | ) | (113.2 | ) | ||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 5.4 | 5.4 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (0.1 | ) | (0.1 | ) | |||||||||||
Income taxes | - | - | 13.2 | 13.2 | |||||||||||||
Total other comprehensive loss | (68.0 | ) | - | (26.7 | ) | (94.7 | ) | ||||||||||
Balance, March 31, 2015 | $ | (40.7 | ) | $ | - | $ | (157.9 | ) | $ | (198.6 | ) | ||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency Translation | Hedges | Benefit Plans | |||||||||||||||
Balance, March 31, 2013 | $ | 17.8 | $ | (1.1 | ) | $ | (145.1 | ) | $ | (128.4 | ) | ||||||
Other comprehensive income before reclassifications | 9.5 | - | 18.7 | 28.2 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 6.2 | 6.2 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (1.2 | ) | (1.2 | ) | |||||||||||
Commodity derivatives (b) | - | 0.5 | - | 0.5 | |||||||||||||
Income taxes | - | 0.6 | (9.8 | ) | (9.2 | ) | |||||||||||
Total other comprehensive income | 9.5 | 1.1 | 13.9 | 24.5 | |||||||||||||
Balance, March 31, 2014 | $ | 27.3 | $ | - | $ | (131.2 | ) | $ | (103.9 | ) | |||||||
(a) | Amounts are included in the calculation of net periodic benefit cost for the Company’s defined benefit plans, which include pension and other postretirement plans. See Note 17 for additional information about the Company’s pension plans. | ||||||||||||||||
(b) | Reclassifications for commodity derivatives are included in cost of sales. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Segment and Geographic Information [Abstract] | |||||||||||||||||||||||||
Segment and Geographic Information | Note 21: Segment and Geographic Information | ||||||||||||||||||||||||
The Company’s product lines consist of heat-transfer components and systems. The Company serves the vehicular, industrial, and building heating, ventilating and air conditioning markets. During 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. Throughout fiscal 2015, the Company’s five operating segments were as follows: | |||||||||||||||||||||||||
North America: | |||||||||||||||||||||||||
Comprised of vehicular and industrial original equipment products in North America. | |||||||||||||||||||||||||
Europe: | |||||||||||||||||||||||||
Comprised of vehicular and industrial original equipment products in Europe. | |||||||||||||||||||||||||
South America: | |||||||||||||||||||||||||
Comprised of vehicular and industrial original equipment products and aftermarket products in South America. | |||||||||||||||||||||||||
Asia: | |||||||||||||||||||||||||
Comprised of vehicular and industrial original equipment products in Asia. | |||||||||||||||||||||||||
Building HVAC: | |||||||||||||||||||||||||
Comprised of building heating, ventilating and air conditioning products throughout the world. | |||||||||||||||||||||||||
Each operating segment is managed by a vice president or managing director and has separate financial results reviewed by the Company’s chief operating decision maker. These results are used by management in evaluating the performance of each segment and in making decisions on the allocation of resources among the Company’s various businesses. | |||||||||||||||||||||||||
Effective April 1, 2015, the Company combined its North America and South America segment operations, with the objective of streamlining its operations to gain synergies and improve its cost structure. Beginning for fiscal 2016, the Company will report financial results for the new Americas operating segment, which will include both North America and South America. | |||||||||||||||||||||||||
The following is a summary of net sales, gross profit, and operating income by segment: | |||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Net sales: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 573.5 | $ | 568.7 | $ | 564.5 | |||||||||||||||||||
Europe | 578.2 | 584.4 | 498 | ||||||||||||||||||||||
South America | 93.9 | 122.7 | 133.8 | ||||||||||||||||||||||
Asia | 81.2 | 71.5 | 59.5 | ||||||||||||||||||||||
Building HVAC | 186.3 | 146.5 | 139.3 | ||||||||||||||||||||||
Segment total | 1,513.10 | 1,493.80 | 1,395.10 | ||||||||||||||||||||||
Corporate and eliminations | (16.7 | ) | (16.2 | ) | (19.1 | ) | |||||||||||||||||||
Net sales | $ | 1,496.40 | $ | 1,477.60 | $ | 1,376.00 | |||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Gross profit: | $'s | % of sales | $'s | % of sales | $'s | % of sales | |||||||||||||||||||
North America | $ | 97 | 16.9 | % | $ | 93.5 | 16.4 | % | $ | 81.4 | 14.4 | % | |||||||||||||
Europe | 68.7 | 11.9 | % | 70.8 | 12.1 | % | 61 | 12.3 | % | ||||||||||||||||
South America | 12.1 | 12.8 | % | 20.8 | 16.9 | % | 22.5 | 16.8 | % | ||||||||||||||||
Asia | 11.5 | 14.2 | % | 8.9 | 12.5 | % | 1.7 | 2.8 | % | ||||||||||||||||
Building HVAC | 55.9 | 30 | % | 43.4 | 29.6 | % | 40.8 | 29.3 | % | ||||||||||||||||
Segment total | 245.2 | 16.2 | % | 237.4 | 15.9 | % | 207.4 | 14.9 | % | ||||||||||||||||
Corporate and eliminations | 1.3 | - | 0.8 | - | 1.2 | - | |||||||||||||||||||
Gross profit | $ | 246.5 | 16.5 | % | $ | 238.2 | 16.1 | % | $ | 208.6 | 15.2 | % | |||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Operating income: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 45.9 | $ | 42.1 | $ | 39.2 | |||||||||||||||||||
Europe | 25.7 | 9.6 | (25.4 | ) | |||||||||||||||||||||
South America | (12.3 | ) | 7.5 | 11.2 | |||||||||||||||||||||
Asia | 0.3 | (3.3 | ) | (8.8 | ) | ||||||||||||||||||||
Building HVAC | 19.1 | 9.4 | 10 | ||||||||||||||||||||||
Segment total | 78.7 | 65.3 | 26.2 | ||||||||||||||||||||||
Corporate and eliminations | (26.0 | ) | (28.1 | ) | (26.8 | ) | |||||||||||||||||||
Operating income (loss) | $ | 52.7 | $ | 37.2 | $ | (0.6 | ) | ||||||||||||||||||
Inter-segment sales are accounted for based on an established markup over production costs. Net sales for corporate and eliminations primarily represent the elimination of inter-segment sales. The operating loss for corporate includes certain research and development costs, legal, finance and other general corporate expenses, and also includes a portion of central services costs that are not directly attributable to an operating segment. | |||||||||||||||||||||||||
The following is a summary of total assets by segment: | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
North America | $ | 231.8 | $ | 218.1 | |||||||||||||||||||||
Europe | 283.1 | 367.9 | |||||||||||||||||||||||
South America | 46.5 | 80.1 | |||||||||||||||||||||||
Asia | 92.4 | 92.8 | |||||||||||||||||||||||
Building HVAC | 131.4 | 132.7 | |||||||||||||||||||||||
Corporate and eliminations | 146.4 | 140.7 | |||||||||||||||||||||||
Total assets | $ | 931.6 | $ | 1,032.30 | |||||||||||||||||||||
The following is a summary of capital expenditures and depreciation and amortization expense by segment: | |||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Capital expenditures: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 25.9 | $ | 18.9 | $ | 19 | |||||||||||||||||||
Europe | 21.5 | 22.9 | 16.5 | ||||||||||||||||||||||
South America | 4.3 | 5.7 | 3.4 | ||||||||||||||||||||||
Asia | 3.8 | 4.6 | 7.8 | ||||||||||||||||||||||
Building HVAC | 2.8 | 1 | 3.1 | ||||||||||||||||||||||
Total capital expenditures | $ | 58.3 | $ | 53.1 | $ | 49.8 | |||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Depreciation and amortization expense: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 18.1 | $ | 19.3 | $ | 20.1 | |||||||||||||||||||
Europe | 19.8 | 26.6 | 23.4 | ||||||||||||||||||||||
South America | 3.2 | 3.3 | 3.7 | ||||||||||||||||||||||
Asia | 7.2 | 6.7 | 6.4 | ||||||||||||||||||||||
Building HVAC | 3.3 | 2.2 | 2.2 | ||||||||||||||||||||||
Total depreciation and amortization expense | $ | 51.6 | $ | 58.1 | $ | 55.8 | |||||||||||||||||||
The following is a summary of net sales by geographical area, based upon the location of the selling unit: | |||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
United States | $ | 669.3 | $ | 645.7 | $ | 637.4 | |||||||||||||||||||
Germany | 193.8 | 229.5 | 214.8 | ||||||||||||||||||||||
Hungary | 161 | 150.3 | 117.6 | ||||||||||||||||||||||
Austria | 118.7 | 109.8 | 97.7 | ||||||||||||||||||||||
Brazil | 93.2 | 122 | 128.8 | ||||||||||||||||||||||
Other | 260.4 | 220.3 | 179.7 | ||||||||||||||||||||||
Net sales | $ | 1,496.40 | $ | 1,477.60 | $ | 1,376.00 | |||||||||||||||||||
The following is a summary of property, plant and equipment by geographical area: | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
United States | $ | 105 | $ | 100.7 | |||||||||||||||||||||
Germany | 66 | 81.8 | |||||||||||||||||||||||
Other European countries | 79.9 | 100 | |||||||||||||||||||||||
China | 36.3 | 38.9 | |||||||||||||||||||||||
Other | 34.9 | 38.2 | |||||||||||||||||||||||
Total property, plant and equipment | $ | 322.1 | $ | 359.6 | |||||||||||||||||||||
The following is a summary of net sales by product type: | |||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Modules/assemblies | $ | 367.5 | $ | 379.9 | $ | 358.5 | |||||||||||||||||||
Oil coolers | 233 | 215.4 | 194.1 | ||||||||||||||||||||||
HVAC equipment | 199.6 | 159.5 | 151.8 | ||||||||||||||||||||||
EGR coolers | 183.5 | 172.5 | 136.1 | ||||||||||||||||||||||
Charge air coolers | 148.9 | 157 | 161.8 | ||||||||||||||||||||||
Condensers | 140 | 129.2 | 128.8 | ||||||||||||||||||||||
Radiators | 124.8 | 129 | 134.4 | ||||||||||||||||||||||
Other | 99.1 | 135.1 | 110.5 | ||||||||||||||||||||||
Net sales | $ | 1,496.40 | $ | 1,477.60 | $ | 1,376.00 |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||||
Quarterly Financial Data (Unaudited) | Note 22: Quarterly Financial Data (Unaudited) | ||||||||||||||||||||
Quarterly financial data is summarized below for the years ended March 31, 2015 and 2014: | |||||||||||||||||||||
Fiscal 2015 quarters ended | |||||||||||||||||||||
June | Sept. | Dec. | March | Fiscal 2015 | |||||||||||||||||
Net sales | $ | 392.5 | $ | 377.3 | $ | 363.6 | $ | 363 | $ | 1,496.40 | |||||||||||
Gross profit | 67.7 | 56.7 | 59.4 | 62.7 | 246.5 | ||||||||||||||||
Earnings (loss) from continuing operations (a) | 14.1 | 2 | 9.1 | (3.0 | ) | 22.2 | |||||||||||||||
Net earnings (loss) attributable to Modine (a) | 13.7 | 1.7 | 9.6 | (3.2 | ) | 21.8 | |||||||||||||||
Net earnings (loss) per share attributable to Modine shareholders: | |||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.04 | $ | 0.2 | $ | (0.07 | ) | $ | 0.46 | ||||||||||
Diluted | 0.28 | 0.04 | 0.2 | (0.07 | ) | 0.45 | |||||||||||||||
Fiscal 2014 quarters ended | |||||||||||||||||||||
June | Sept. | Dec. | March | Fiscal 2014 | |||||||||||||||||
Net sales | $ | 375.8 | $ | 364.2 | $ | 347 | $ | 390.6 | $ | 1,477.60 | |||||||||||
Gross profit | 61.9 | 57.2 | 56.8 | 62.3 | 238.2 | ||||||||||||||||
Earnings (loss) from continuing operations (a) (b) | 10.6 | 5 | (3.4 | ) | 119.7 | 131.9 | |||||||||||||||
Net earnings (loss) attributable to Modine (a) (b) | 10 | 4.6 | (3.6 | ) | 119.4 | 130.4 | |||||||||||||||
Net earnings (loss) per share attributable to Modine shareholders: | |||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.1 | $ | (0.08 | ) | $ | 2.51 | $ | 2.75 | ||||||||||
Diluted | 0.21 | 0.1 | (0.08 | ) | 2.49 | 2.72 | |||||||||||||||
(a) | The quarterly financial data presented above includes restructuring expenses and impairment charges related to restructuring actions in Europe, North America, and South America segments. During fiscal 2015, restructuring expenses totaled $0.8 million, $1.0 million, $1.9 million, and $1.0 million for the quarters ended June 30, 2014, September 30, 2014, December 31, 2014, and March 31, 2015, respectively. During the third quarter of fiscal 2015, the Company sold a wind tunnel within the Europe segment and recognized a gain of $3.2 million. During the fourth quarter of fiscal 2015, the Company recorded a $7.8 million goodwill impairment charge related to its South America segment. Also during the fourth quarter of fiscal 2015, the Company recorded a $3.2 million charge in its South America segment associated with a legal matter in Brazil. During fiscal 2014, restructuring expenses totaled $0.5 million, $0.6 million, $9.4 million, and $5.6 million for the quarters ended June 30, 2013, September 30, 2013, December 31, 2013, and March 31, 2014, respectively. The Company recorded impairment charges of $2.0 million and $1.2 million during the quarters ended December 31, 2013 and March 31, 2014, respectively. See Notes 6, 14, and 19 for additional information. | ||||||||||||||||||||
(b) | The quarter ended March 31, 2014 was benefited by the reversal of U.S. income tax valuation allowances totaling $119.2 million. See Note 8 for additional information. |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II ‑ VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
For the years ended March 31, 2015, 2014 and 2013 | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Additions | |||||||||||||||||||||
Description | Balance at Beginning of Period | Charged | Charged to | Deductions | Balance at | ||||||||||||||||
(Benefit) to | Other | End of Period | |||||||||||||||||||
Costs and Expenses | Accounts | ||||||||||||||||||||
2015: Allowance for Doubtful Accounts | $ | 1.1 | $ | 0.4 | $ | (0.2 | )(b) | $ | (0.3 | )(a) | $ | 1 | |||||||||
Valuation Allowance for Deferred Tax Assets | $ | 61.2 | $ | (6.8 | ) | $ | (6.4 | )(b) | $ | - | $ | 48 | |||||||||
2014: Allowance for Doubtful Accounts | $ | 0.8 | $ | 0.6 | $ | - | (b) | $ | (0.3 | )(a) | $ | 1.1 | |||||||||
Valuation Allowance for Deferred Tax Assets | $ | 172.8 | $ | (113.1 | ) | $ | 1.5 | (b) | $ | - | $ | 61.2 | |||||||||
2013: Allowance for Doubtful Accounts | $ | 0.8 | $ | 0.5 | $ | (0.1 | )(b) | $ | (0.4 | )(a) | $ | 0.8 | |||||||||
Valuation Allowance for Deferred Tax Assets | $ | 146.8 | $ | 7.7 | $ | 18.3 | (b) | $ | - | $ | 172.8 | ||||||||||
Notes: | |||||||||||||||||||||
(a) | Bad debts charged off during the year | ||||||||||||||||||||
(b) | Translation and other adjustments |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: The Company prepares its consolidated financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States. These principles require management to make certain estimates and assumptions in determining assets, liabilities, revenue, expenses and related disclosures. Actual amounts could differ materially from those estimates. |
Consolidation principles | Consolidation principles: The consolidated financial statements include the accounts of Modine Manufacturing Company and its majority-owned or Modine-controlled subsidiaries. The Company eliminates intercompany transactions and balances in consolidation. |
The Company accounts for investments in non-consolidated affiliated companies in which its ownership is 20 percent or more using the equity method. The Company states these investments at cost, plus or minus a proportionate share of undistributed net income (loss). The Company includes Modine’s share of the affiliates net income (loss) in other income and expense. See Note 12 for further discussion. | |
Discontinued operations | Discontinued operations: During fiscal 2009, the Company sold its Electronics Cooling business. The buyer financed a portion of the selling price by issuing promissory notes payable to Modine. During fiscal 2015, the Company received $1.5 million from the buyer, which represented the final payment on the promissory notes. The Company had previously recorded a reserve against a portion of the promissory notes due to collectability concerns. As a result, the Company recorded a gain of $0.9 million ($0.6 million after income taxes) during fiscal 2015. |
Assets held for sale | Assets held for sale: The Company considers assets to be held for sale when management approves and commits to a formal plan to actively market the assets for sale at a price reasonable in relation to its fair value, the asset is available for immediate sale in its present condition, an active program to locate a buyer and other actions required to complete the sale have been initiated, the sale of the asset is expected to be completed within one year and it is unlikely that significant changes will be made to the plan. Upon designation as held for sale, the Company records the carrying value of the assets at the lower of its carrying value or its estimated fair value, less costs to sell. The Company ceases to record depreciation expense at the time of designation as held for sale. |
Revenue recognition | Revenue recognition: The Company recognizes sales revenue, including agreed upon commodity price increases or decreases, when it is both earned and realized or realizable. The Company’s policy is to recognize revenue when title to the product and risk of loss have transferred to the customer, persuasive evidence of an arrangement exists, and collection of the sales proceeds is reasonably assured, all of which generally occur upon shipment of goods to customers. The Company makes appropriate provisions for uncollectible accounts receivable based on historical data or specific customer economic data. The Company records sales discounts, which are offered for prompt payment by certain customers, as a reduction to net sales. |
Tooling costs | Tooling costs: The Company accounts for production tooling costs as a component of property, plant and equipment when it owns title to the tooling and amortizes the capitalized cost to cost of sales over the estimated life of the asset, which is generally three years. At March 31, 2015 and 2014, Company-owned tooling totaled $18.7 million and $28.6 million, respectively. In certain instances, the Company makes upfront payments for customer-owned tooling costs, and subsequently receives reimbursement from customers for the upfront payments. The Company accounts for unbilled customer-owned tooling costs as a receivable within other current assets when the customer has guaranteed reimbursement to the Company. No significant arrangements exist where customer-owned tooling costs were not accompanied by guaranteed reimbursement. At March 31, 2015 and 2014, cost reimbursement receivables related to customer-owned tooling totaled $11.6 million and $10.3 million, respectively. |
Warranty | Warranty: The Company provides product warranties for specific product lines and accrues for estimated future warranty costs in the period in which the sale is recorded. The Company records warranty expense based upon historical and current claims data or based on estimated future claims. Accrual balances, which are recorded within other current liabilities, are monitored and adjusted if it is probable that expected claims will differ from previous estimates. See Note 15 for further discussion. |
Shipping and handling costs | Shipping and handling costs: The Company records shipping and handling costs incurred upon the shipment of products to its OEM customers in cost of sales, and related amounts billed to these customers in net sales. The Company records shipping and handling costs incurred upon the shipment of products to its HVAC and aftermarket customers in selling, general and administrative (“SG&A”) expenses. For the years ended March 31, 2015, 2014, and 2013, these shipping and handling costs recorded in SG&A expenses were $4.9 million, $4.0 million, and $4.3 million, respectively. |
Research and development | Research and development: The Company expenses research and development costs as incurred within SG&A expenses. For the years ended March 31, 2015, 2014, and 2013, research and development costs charged to operations totaled $62.0 million, $61.7 million, and $68.4 million, respectively. |
Translation of foreign currencies | Translation of foreign currencies: The Company translates assets and liabilities of foreign subsidiaries and equity investments into U.S. dollars at the period-end exchange rates, and translates income and expense items at the monthly average exchange rate for the period in which the transactions occur. The Company reports resulting translation adjustments within accumulated other comprehensive income (loss) within shareholders' equity. The Company includes foreign currency transaction gains or losses in the statement of operations within other income and expense. |
Derivative instruments | Derivative instruments: The Company enters into derivative financial instruments from time to time to manage certain financial risks. The Company enters into futures contracts to reduce exposure to changing future purchase prices for aluminum and copper and into foreign currency exchange contracts to hedge specific foreign currency denominated assets and liabilities. These instruments are used to manage financial risks and are not speculative. See Note 18 for further discussion. |
Income taxes | Income taxes: The Company determines deferred tax assets and liabilities based upon the difference between the amounts reported in the financial statements and the tax basis of assets and liabilities, using enacted tax rates in effect in the years in which the differences are expected to reverse. The Company establishes a valuation allowance if it is more likely than not that a deferred tax asset, or portion thereof, will not be realized. See Note 8 for further discussion. |
Earnings per share | Earnings per share: The Company calculates basic earnings per share based upon the weighted average number of common shares outstanding during the period, while the calculation of diluted earnings per share includes the dilutive effect of potential common shares outstanding during the period. The calculation of diluted earnings per share excludes all potential common shares if their inclusion would have an anti-dilutive effect. Restricted stock award recipients have a non-forfeitable right to receive dividends declared by the Company. Therefore, these restricted stock awards are included in computing earnings per share pursuant to the two-class method. See Note 9 for further discussion. |
Cash and cash equivalents | Cash and cash equivalents: The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. Under the Company’s cash management system, cash balances at certain banks are funded when checks are presented for payment. To the extent checks issued, but not yet presented for payment, exceed the balance on hand at the specific bank against which they were written, the amount of those un-presented checks is included in accounts payable. |
Short-term investments | Short-term investments: The Company invests in time deposits with original maturities of more than three months but no more than one year. The Company records these short-term investments at cost, which approximates fair value, within other current assets in the consolidated balance sheets. |
Deferred compensation trust | Deferred compensation trust: The Company maintains a deferred compensation trust to fund future obligations under its non-qualified deferred compensation plan. The trust’s investments in third-party debt and equity securities are presented within other noncurrent assets in the consolidated balance sheets. |
Trade accounts receivable | Trade accounts receivable: The Company records trade receivables at the invoiced amount. Trade receivables do not bear interest if paid according to the original terms. The allowance for doubtful accounts, $1.0 million and $1.1 million at March 31, 2015 and 2014, respectively, represents estimated uncollectible receivables. The Company enters into supply chain financing programs from time to time to sell accounts receivable without recourse to third-party financial institutions. Sales of accounts receivable are reflected as a reduction of accounts receivable on the consolidated balance sheets and the proceeds are included in cash flows from operating activities in the consolidated statements of cash flows. During the years ended March 31, 2015, 2014, and 2013, the Company sold, without recourse, $87.0 million, $82.4 million, and $99.1 million of accounts receivable to accelerate cash receipts. During each of the years ended March 31, 2015, 2014, and 2013, the Company recorded a loss on the sale of accounts receivables of $0.3 million in the consolidated statements of operations. |
Inventories | Inventories: The Company values inventories at the lower of cost, on a first-in, first-out basis or weighted average basis, or market value. |
Property, plant and equipment | Property, plant and equipment: The Company states property, plant and equipment at cost. For financial reporting purposes, the Company computes depreciation using the straight-line method over the expected useful life of the asset. The Company charges maintenance and repair costs to operations as incurred. The Company capitalizes costs of improvements. Upon the sale or other disposition of an asset, the Company removes the cost and related accumulated depreciation from the accounts and includes the gain or loss in the consolidated statements of operations. |
Goodwill | Goodwill: The Company does not amortize goodwill; rather, it tests for impairment annually unless conditions exist that would require a more frequent evaluation. The Company performs an assessment of the fair value of its reporting units for goodwill impairment testing based upon, among other things, the present value of expected future cash flows. The Company recognizes an impairment loss if the book value of goodwill exceeds the fair value. The Company performed the goodwill impairment test as of March 31, 2015 and as a result, recorded an impairment charge of $7.8 million related to its South America segment. See Note 14 for further discussion. |
Impairment of long-lived assets | Impairment of long-lived assets: The Company reviews long-lived assets, including property, plant and equipment and intangible assets for impairment and writes them down to fair value when facts and circumstances indicate the carrying value of the assets may not be recoverable through estimated future undiscounted cash flows. If an impairment has occurred, the Company writes down the asset to its estimated fair value and recognizes the impairment loss as a charge against current operations. The Company estimates fair value using a variety of valuation techniques, including discounted cash flows, market values and comparison values for similar assets. See Note 6 for further discussion. |
Environmental expenditures | Environmental expenditures: The Company capitalizes environmental expenditures that qualify as property, plant and equipment or substantially increase the economic value or extend the useful life of an asset. The Company expenses all other expenditures as incurred. If a loss arising from environmental matters is probable and can be reasonably estimated, the Company records an accrual for the amount of the estimated loss. See Note 19 for further discussion. |
Self-insurance reserves | Self-insurance reserves: The Company retains a portion of the financial risk for various insurance coverage, including property, general liability, workers compensation, and employee healthcare, and therefore maintains reserves that estimate the impact of unreported and under-reported claims that fall below various stop-loss limits and deductibles under its insurance policies. The Company maintains reserves for the estimated settlement cost of known claims, as well as estimates of incurred but not reported claims. The Company charges costs of claims, including the impact of changes in reserves due to claim experience and severity, to operations. The Company reviews and updates the evaluation of insurance claims and the reasonableness of the related reserves on a quarterly basis. |
Stock-based compensation | Stock-based compensation: The Company recognizes stock-based compensation using the fair value method. Accordingly, compensation expense for stock options, restricted stock and performance-based stock awards is calculated based upon the fair value of the instruments at the time of grant, and is recognized as expense over the respective vesting periods. See Note 5 for further discussion. |
Out of period adjustments | Out of period adjustments: During the second quarter of fiscal 2014, the Company recorded a customer pricing adjustment that 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 these errors were material to its financial statements for fiscal 2014 or 2013. |
New accounting guidance | New accounting guidance: In May 2014, the Financial Accounting Standards Board issued new guidance that outlines a comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle 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 at the earliest. The Company is currently evaluating the impact the new guidance will have on its consolidated financial statements. |
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||
Supplemental cash flow information | Supplemental cash flow information: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Interest paid | $ | 10.3 | $ | 12.6 | $ | 11.6 | |||||||
Income taxes paid | 15.9 | 11.4 | 12.4 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||
Schedule of U.S. pension plan assets fair value | Plan assets related to the Company’s pension plans were classified as follows: | ||||||||||||||||
31-Mar-15 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market investments | $ | - | $ | 8.1 | $ | - | $ | 8.1 | |||||||||
Common stocks | 40.5 | 2.2 | - | 42.7 | |||||||||||||
Corporate bonds | - | 23.5 | - | 23.5 | |||||||||||||
Pooled equity funds | 69 | 11.4 | - | 80.4 | |||||||||||||
Pooled fixed-income funds | 15.5 | - | - | 15.5 | |||||||||||||
U.S. government and agency securities | - | 39.8 | - | 39.8 | |||||||||||||
Other | 0.7 | 6.3 | - | 7 | |||||||||||||
Total | $ | 125.7 | $ | 91.3 | $ | - | $ | 217 | |||||||||
31-Mar-14 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Money market investments | $ | - | $ | 11.3 | $ | - | $ | 11.3 | |||||||||
Common stocks | 40.1 | 2.1 | - | 42.2 | |||||||||||||
Corporate bonds | - | 21.3 | - | 21.3 | |||||||||||||
Pooled equity funds | 68.9 | 11.9 | - | 80.8 | |||||||||||||
Pooled fixed-income funds | 14.1 | - | - | 14.1 | |||||||||||||
U.S. government and agency securities | - | 37 | - | 37 | |||||||||||||
Other | 1.6 | 5.4 | - | 7 | |||||||||||||
Total | $ | 124.7 | $ | 89 | $ | - | $ | 213.7 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||||||
Assumptions used in determining fair value of options | The Company estimated the fair value of option awards on the date of grant using the Black-Scholes option valuation model and the following assumptions: | ||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Weighted average fair value of options | $ | 10.21 | $ | 7.76 | $ | 4.26 | |||||||||||
Expected life of awards in years | 6.3 | 6.3 | 6.3 | ||||||||||||||
Risk-free interest rate | 2.1 | % | 1.3 | % | 0.9 | % | |||||||||||
Expected volatility of the Company's stock | 76.1 | % | 88.7 | % | 87.4 | % | |||||||||||
Expected dividend yield on the Company's stock | 0 | % | 0 | % | 0 | % | |||||||||||
Summary of the stock option activity | A summary of stock option activity for fiscal 2015 was as follows: | ||||||||||||||||
Shares | Weighted average | Weighted average | Aggregate | ||||||||||||||
exercise price | remaining contractual | intrinsic value | |||||||||||||||
term (years) | |||||||||||||||||
Outstanding, beginning | 1.6 | $ | 13.15 | ||||||||||||||
Granted | 0.1 | 14.94 | |||||||||||||||
Exercised | (0.1 | ) | 8.71 | ||||||||||||||
Forfeited or expired | (0.1 | ) | 29.41 | ||||||||||||||
Outstanding, ending | 1.5 | $ | 11.99 | 5.3 | $ | 5.7 | |||||||||||
Exercisable, March 31, 2015 | 1.2 | $ | 12.13 | 4.5 | $ | 4.9 | |||||||||||
Information related to stock options exercised | Additional information related to stock options exercised during fiscal 2015, 2014, and 2013 was as follows: | ||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||
Intrinsic value of stock options exercised | $ | 0.4 | $ | 1.1 | $ | 0.1 | |||||||||||
Proceeds from stock options exercised | $ | 0.6 | $ | 1.1 | $ | 0.1 | |||||||||||
Summary of the restricted stock activity | A summary of restricted stock activity for fiscal 2015 was as follows: | ||||||||||||||||
Shares | Weighted | ||||||||||||||||
average | |||||||||||||||||
price | |||||||||||||||||
Non-vested balance, beginning | 0.6 | $ | 8.66 | ||||||||||||||
Granted | 0.3 | 14.92 | |||||||||||||||
Vested | (0.2 | ) | 9.73 | ||||||||||||||
Non-vested balance, ending | 0.7 | $ | 10.68 | ||||||||||||||
Restructuring_Activities_Table
Restructuring Activities (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Restructuring and Impairment Charges [Abstract] | |||||||||||||
Restructuring and repositioning expenses | Restructuring and repositioning expenses for fiscal 2015, 2014, and 2013 were as follows: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Employee severance and related benefits | $ | 1.2 | $ | 14.8 | $ | 14.9 | |||||||
Accelerated depreciation | - | 4.3 | - | ||||||||||
Other restructuring and repositioning expenses | 3.5 | 1.3 | 2.1 | ||||||||||
Total | $ | 4.7 | $ | 20.4 | $ | 17 | |||||||
Changes in accrued severance | Changes in accrued severance were as follows: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Beginning balance | $ | 19.4 | $ | 11.6 | |||||||||
Additions | 1.2 | 14.8 | |||||||||||
Payments | (7.3 | ) | (7.8 | ) | |||||||||
Effect of exchange rate changes | (3.4 | ) | 0.8 | ||||||||||
Ending balance | $ | 9.9 | $ | 19.4 |
Other_Income_and_Expense_Table
Other Income and Expense (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Other Income and Expense [Abstract] | |||||||||||||
Other income and expense | Other income and expense consisted of the following: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Equity in earnings of non-consolidated affiliate | $ | 0.6 | $ | 0.7 | $ | 0.3 | |||||||
Interest income | 0.5 | 0.5 | 0.9 | ||||||||||
Foreign currency transactions | (0.9 | ) | (2.0 | ) | (1.1 | ) | |||||||
Other non-operating income - net | - | - | 0.1 | ||||||||||
Total other income (expense) - net | $ | 0.2 | $ | (0.8 | ) | $ | 0.2 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Income Taxes [Abstract] | |||||||||||||
Schedule of components of earnings (loss) from continuing operations before income taxes | The U.S. and foreign components of earnings (loss) from continuing operations before income taxes and the provision (benefit) for income taxes consisted of the following: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Components of earnings (loss) from continuing operations before income taxes: | |||||||||||||
United States | $ | 31.1 | $ | 14.1 | $ | 10.2 | |||||||
Foreign | 10.1 | 9.9 | (23.2 | ) | |||||||||
Total earnings (loss) from continuing operations before income taxes | $ | 41.2 | $ | 24 | $ | (13.0 | ) | ||||||
Income tax expense (benefit): | |||||||||||||
Federal: | |||||||||||||
Current | $ | 0.4 | $ | (2.0 | ) | $ | 2.6 | ||||||
Deferred | 7.1 | (95.8 | ) | (2.6 | ) | ||||||||
State: | |||||||||||||
Current | - | 0.2 | 0.2 | ||||||||||
Deferred | 1.1 | (21.4 | ) | (0.2 | ) | ||||||||
Foreign: | |||||||||||||
Current | 12.7 | 10 | 6.4 | ||||||||||
Deferred | (2.3 | ) | 1.1 | 3.4 | |||||||||
Total income tax expense (benefit) | $ | 19 | $ | (107.9 | ) | $ | 9.8 | ||||||
Reconciliation of the federal statutory income tax rate to the company's effective income tax rate | Income tax expense attributable to earnings (loss) from continuing operations before income taxes differed from the amounts computed by applying the statutory U.S. federal income tax rate as a result of the following: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Statutory federal tax | 35 | % | 35 | % | 35 | % | |||||||
State taxes, net of federal benefit | 2.4 | 2.1 | (1.3 | ) | |||||||||
Taxes on non-U.S. earnings and losses | (4.9 | ) | (3.8 | ) | (23.8 | ) | |||||||
Valuation allowance | 8.3 | (471.7 | ) | (59.3 | ) | ||||||||
Tax credits | (6.1 | ) | (7.1 | ) | 37 | ||||||||
Compensation | 1 | 0.4 | (13.0 | ) | |||||||||
Tax rate or law changes | 1.2 | (9.2 | ) | 0.9 | |||||||||
Uncertain tax positions net of settlements | 2.2 | 0.4 | (41.9 | ) | |||||||||
Brazil interest on equity | - | (1.7 | ) | 3.2 | |||||||||
Dividend repatriation | 2.4 | 5.8 | (11.4 | ) | |||||||||
Other | 4.6 | 0.2 | (0.8 | ) | |||||||||
Effective tax rate | 46.1 | % | (449.6 | %) | (75.4 | %) | |||||||
Schedule of deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that gave rise to deferred tax assets and liabilities were as follows: | ||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Deferred tax assets: | |||||||||||||
Accounts receivable | $ | 0.3 | $ | 0.2 | |||||||||
Inventories | 3.8 | 4.1 | |||||||||||
Plant and equipment | 0.8 | 2.4 | |||||||||||
Pension and employee benefits | 50.5 | 39.1 | |||||||||||
Net operating loss, capital loss, and credit carryforwards | 105 | 122.4 | |||||||||||
Other, principally accrued liabilities | 6.8 | 10.3 | |||||||||||
Total gross deferred tax assets | 167.2 | 178.5 | |||||||||||
Less: valuation allowance | (48.0 | ) | (61.2 | ) | |||||||||
Net deferred tax assets | 119.2 | 117.3 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Goodwill | 0.6 | 4.2 | |||||||||||
Plant and equipment | 5.3 | 7.6 | |||||||||||
Other | 1 | 1.7 | |||||||||||
Total gross deferred tax liabilities | 6.9 | 13.5 | |||||||||||
Net deferred tax asset | $ | 112.3 | $ | 103.8 | |||||||||
Deferred tax assets and liabilities are reported in the consolidated balance sheets as follows: | |||||||||||||
March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Current deferred tax asset | $ | 13.4 | $ | 13 | |||||||||
Noncurrent deferred tax asset | 102.7 | 98.6 | |||||||||||
Current deferred tax liability (other current liabilities) | (0.4 | ) | (0.5 | ) | |||||||||
Noncurrent deferred tax liability | (3.4 | ) | (7.3 | ) | |||||||||
Total | $ | 112.3 | $ | 103.8 | |||||||||
Reconciliation of unrecognized tax benefits | Unrecognized tax benefits were as follows: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | ||||||||||||
Beginning balance | $ | 2.1 | $ | 9 | |||||||||
Gross increases - tax positions in prior period | 3.1 | 2.5 | |||||||||||
Gross decreases - tax positions in prior period | - | (7.0 | ) | ||||||||||
Gross increases - tax positions in current period | 0.4 | 0.1 | |||||||||||
Settlements | - | (1.9 | ) | ||||||||||
Lapse of statute of limitations | - | (0.8 | ) | ||||||||||
Effect of exchange rate changes | - | 0.2 | |||||||||||
Ending balance | $ | 5.6 | $ | 2.1 | |||||||||
Schedule of tax years subject to examination by the respective major tax jurisdictions | The following tax years remain subject to examination for the Company’s major tax jurisdictions: | ||||||||||||
Austria | Fiscal 2012 - 2014 | ||||||||||||
Brazil | Calendar 2010 - 2014 | ||||||||||||
Germany | Fiscal 2011 - 2014 | ||||||||||||
United States | Fiscal 2012 – 2014 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Components of basic and diluted earnings per share | The components of basic and diluted earnings per share are as follows: | ||||||||||||
Years ended March 31, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Basic: | |||||||||||||
Earnings (loss) from continuing operations | $ | 22.2 | $ | 131.9 | $ | (22.8 | ) | ||||||
Less: Net earnings attributable to noncontrolling interest | (1.0 | ) | (1.5 | ) | (1.4 | ) | |||||||
Less: Undistributed earnings attributable to unvested shares | (0.2 | ) | (1.7 | ) | - | ||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 21 | 128.7 | (24.2 | ) | |||||||||
Earnings from discontinued operations, net of income taxes | 0.6 | - | - | ||||||||||
Net earnings (loss) available to Modine shareholders | $ | 21.6 | $ | 128.7 | $ | (24.2 | ) | ||||||
Weighted average shares outstanding - basic | 47.2 | 46.9 | 46.6 | ||||||||||
Basic Earnings Per Share: | |||||||||||||
Earnings (loss) per share - continuing operations | $ | 0.45 | $ | 2.75 | $ | (0.52 | ) | ||||||
Earnings per share - discontinued operations | 0.01 | - | - | ||||||||||
Net earnings (loss) per share - basic | $ | 0.46 | $ | 2.75 | $ | (0.52 | ) | ||||||
Diluted: | |||||||||||||
Earnings (loss) from continuing operations | $ | 22.2 | $ | 131.9 | $ | (22.8 | ) | ||||||
Less: Net earnings attributable to noncontrolling interest | (1.0 | ) | (1.5 | ) | (1.4 | ) | |||||||
Less: Undistributed earnings attributable to unvested shares | (0.2 | ) | (0.9 | ) | - | ||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 21 | 129.5 | (24.2 | ) | |||||||||
Earnings from discontinued operations, net of income taxes | 0.6 | - | - | ||||||||||
Net earnings (loss) available to Modine shareholders | $ | 21.6 | $ | 129.5 | $ | (24.2 | ) | ||||||
Weighted average shares outstanding - basic | 47.2 | 46.9 | 46.6 | ||||||||||
Effect of dilutive securities | 0.6 | 0.7 | - | ||||||||||
Weighted average shares outstanding - diluted | 47.8 | 47.6 | 46.6 | ||||||||||
Diluted Earnings Per Share: | |||||||||||||
Earnings (loss) per share - continuing operations | $ | 0.44 | $ | 2.72 | $ | (0.52 | ) | ||||||
Earnings per share - discontinued operations | 0.01 | - | - | ||||||||||
Net earnings (loss) per share - diluted | $ | 0.45 | $ | 2.72 | $ | (0.52 | ) |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Inventories consisted of the following: | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Raw materials and work in process | $ | 80.7 | $ | 89.2 | |||||
Finished goods | 27 | 27.6 | |||||||
Total inventories | $ | 107.7 | $ | 116.8 |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, plant and equipment | Property, plant and equipment, including depreciable lives, consisted of the following: | ||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Land | $ | 8.2 | $ | 10.4 | |||||
Buildings and improvements (10-40 years) | 221 | 228.1 | |||||||
Machinery and equipment (3-12 years) | 652 | 715.1 | |||||||
Office equipment (3-10 years) | 81.9 | 89.5 | |||||||
Construction in progress | 31.7 | 35.5 | |||||||
994.8 | 1,078.60 | ||||||||
Less: accumulated depreciation | (672.7 | ) | (719.0 | ) | |||||
Net property, plant and equipment | $ | 322.1 | $ | 359.6 |
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Intangible Assets [Abstract] | |||||||||||||||||||||||||
Schedule of intangible assets | Intangible assets consisted of the following: | ||||||||||||||||||||||||
31-Mar-15 | 31-Mar-14 | ||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||||
Carrying | Amortization | Intangible | Carrying | Amortization | Intangible | ||||||||||||||||||||
Value | Assets | Value | Assets | ||||||||||||||||||||||
Trade names | $ | 9.1 | $ | (5.8 | ) | $ | 3.3 | $ | 10.1 | $ | (5.7 | ) | $ | 4.4 | |||||||||||
Acquired technology | 5.6 | (0.9 | ) | 4.7 | 5.8 | (0.2 | ) | 5.6 | |||||||||||||||||
Customer relationships | 2.1 | (0.2 | ) | 1.9 | 2.4 | - | 2.4 | ||||||||||||||||||
Total intangible assets | $ | 16.8 | $ | (6.9 | ) | $ | 9.9 | $ | 18.3 | $ | (5.9 | ) | $ | 12.4 | |||||||||||
Total estimated annual amortization expense | Estimated future amortization expense is as follows: | ||||||||||||||||||||||||
Fiscal Year | Estimated | ||||||||||||||||||||||||
Amortization | |||||||||||||||||||||||||
Expense | |||||||||||||||||||||||||
2016 | $ | 1.6 | |||||||||||||||||||||||
2017 | 1.6 | ||||||||||||||||||||||||
2018 | 1.6 | ||||||||||||||||||||||||
2019 | 1.5 | ||||||||||||||||||||||||
2020 | 1.4 | ||||||||||||||||||||||||
2021 & Beyond | 2.2 |
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Goodwill [Abstract] | |||||||||||||||||
Schedule of changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill, by segment and in the aggregate, were as follows: | ||||||||||||||||
South | Building | ||||||||||||||||
America | Asia | HVAC | Total | ||||||||||||||
Balance, March 31, 2013 | $ | 12.2 | $ | 0.5 | $ | 16 | $ | 28.7 | |||||||||
Effect of exchange rate changes | (1.3 | ) | - | 1.3 | - | ||||||||||||
Balance, March 31, 2014 | 10.9 | 0.5 | 17.3 | 28.7 | |||||||||||||
Impairment charge | (7.8 | ) | - | - | (7.8 | ) | |||||||||||
Effect of exchange rate changes | (3.1 | ) | - | (1.6 | ) | (4.7 | ) | ||||||||||
Balance, March 31, 2015 | $ | - | $ | 0.5 | $ | 15.7 | $ | 16.2 |
Product_Warranties_Operating_L1
Product Warranties, Operating Leases and Other Commitments (Tables) | 12 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranties, Operating Leases and Other Commitments [Abstract] | |||||||||
Changes in accrued warranty costs | Changes in accrued warranty costs were as follows: | ||||||||
Years ended March 31, | |||||||||
2015 | 2014 | ||||||||
Beginning balance | $ | 14 | $ | 12.6 | |||||
Accruals for warranties issued | 5.8 | 6 | |||||||
Accruals related to pre-existing warranties | 1.5 | 8.3 | |||||||
Settlements | (9.2 | ) | (13.0 | ) | |||||
Effect of exchange rate changes | (1.7 | ) | 0.1 | ||||||
Ending balance | $ | 10.4 | $ | 14 | |||||
Schedule of future minimum rental commitments under non-cancelable operating leases | Future minimum rental commitments at March 31, 2015 under non-cancelable operating leases were as follows: | ||||||||
Fiscal Year | |||||||||
2016 | $ | 8.2 | |||||||
2017 | 5.7 | ||||||||
2018 | 4.3 | ||||||||
2019 | 3.8 | ||||||||
2020 | 4 | ||||||||
2021 and beyond | 23.9 | ||||||||
Total | $ | 49.9 |
Indebtedness_Tables
Indebtedness (Tables) | 12 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Indebtedness [Abstract] | ||||||||||||
Schedule of long-term indebtedness | Long-term debt was comprised of the following: | |||||||||||
Fiscal year | 31-Mar-15 | 31-Mar-14 | ||||||||||
of maturity | ||||||||||||
Foreign credit agreements | 2016 | $ | 0.2 | $ | 0.5 | |||||||
6.8% Senior Notes | 2017-2021 | 125 | 125 | |||||||||
Revolving credit facility | 2019 | - | - | |||||||||
125.2 | 125.5 | |||||||||||
Capital lease obligations | 2016-2030 | 4.9 | 6.5 | |||||||||
130.1 | 132 | |||||||||||
Less: current portion | (0.5 | ) | (0.8 | ) | ||||||||
Total long-term debt | $ | 129.6 | $ | 131.2 | ||||||||
Maturities of long term debt and capital lease obligations | Long-term debt matures as follows: | |||||||||||
Fiscal Year | ||||||||||||
2016 | $ | 0.5 | ||||||||||
2017 | 8.3 | |||||||||||
2018 | 16.3 | |||||||||||
2019 | 16.3 | |||||||||||
2020 | 16.3 | |||||||||||
2021 & beyond | 72.4 | |||||||||||
Total | $ | 130.1 |
Pension_and_Employee_Benefit_P1
Pension and Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Pension and Employee Benefit Plans [Abstract] | |||||||||||||
Change in benefit obligations and plan assets as well as the funded status | Changes in benefit obligations and plan assets as well as the funded status of the Company’s pension plans for the fiscal years ended March 31, 2015 and 2014 were as follows: | ||||||||||||
2015 | 2014 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 295.7 | $ | 309.6 | |||||||||
Service cost | 0.5 | 0.6 | |||||||||||
Interest cost | 13 | 13 | |||||||||||
Actuarial loss (gain) | 40.6 | (10.8 | ) | ||||||||||
Benefits paid | (14.6 | ) | (18.6 | ) | |||||||||
Effect of exchange rate changes | (7.0 | ) | 1.9 | ||||||||||
Benefit obligation at end of year | $ | 328.2 | $ | 295.7 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 213.7 | $ | 200.6 | |||||||||
Actual return on plan assets | 10.8 | 22.2 | |||||||||||
Benefits paid | (14.6 | ) | (18.6 | ) | |||||||||
Employer contributions | 7.1 | 9.5 | |||||||||||
Fair value of plan assets at end of year | $ | 217 | $ | 213.7 | |||||||||
Funded status at end of year | $ | (111.2 | ) | $ | (82.0 | ) | |||||||
Amounts recognized in the consolidated balance sheets: | |||||||||||||
Current liability | $ | (0.8 | ) | $ | (1.0 | ) | |||||||
Noncurrent liability | (110.4 | ) | (81.0 | ) | |||||||||
$ | (111.2 | ) | $ | (82.0 | ) | ||||||||
Pension benefit plans | Costs for the Company’s pension plans included the following components for the fiscal years ended March 31, 2015, 2014, and 2013: | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 0.5 | $ | 0.6 | $ | 0.6 | |||||||
Interest cost | 13 | 13 | 13.5 | ||||||||||
Expected return on plan assets | (16.7 | ) | (15.7 | ) | (16.1 | ) | |||||||
Amortization of net actuarial loss | 5.5 | 6.3 | 5 | ||||||||||
Net periodic benefit cost | $ | 2.3 | $ | 4.2 | $ | 3 | |||||||
Other changes in benefit obligation recognized in other comprehensive loss (income): | |||||||||||||
Net actuarial loss (gain) | $ | 46.4 | $ | (17.3 | ) | $ | 27 | ||||||
Amortization of net actuarial loss | (5.5 | ) | (6.3 | ) | (5.0 | ) | |||||||
Total recognized in other comprehensive loss (income) | $ | 40.9 | $ | (23.6 | ) | $ | 22 | ||||||
Target and plan asset allocations | The Company’s U.S. pension plan weighted average asset allocations at the measurement dates of March 31, 2015 and 2014 were as follows: | ||||||||||||
Target allocation | Plan assets | ||||||||||||
2015 | 2014 | ||||||||||||
Equity securities | 55 | % | 55 | % | 57 | % | |||||||
Debt securities | 38 | % | 36 | % | 37 | % | |||||||
Alternative assets | 5 | % | 5 | % | 5 | % | |||||||
Cash | 2 | % | 4 | % | 1 | % | |||||||
100 | % | 100 | % | 100 | % | ||||||||
Estimated future benefit payments | Estimated pension benefit payments for the next ten fiscal years are as follows: | ||||||||||||
Fiscal Year | Estimated pension | ||||||||||||
benefit payments | |||||||||||||
2016 | $ | 15.1 | |||||||||||
2017 | 15.7 | ||||||||||||
2018 | 16.9 | ||||||||||||
2019 | 17.2 | ||||||||||||
2020 | 18 | ||||||||||||
2021-2025 | 94 |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative Instruments [Abstract] | ||||||||||||||
Fair value of 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-Mar-15 | 31-Mar-14 | ||||||||||||
Foreign exchange contracts | Other current liabilities | $ | 0.3 | $ | 0.2 | |||||||||
Commodity derivatives | Other current liabilities | 0.1 | 0.1 | |||||||||||
Commodity derivatives | Other noncurrent liabilities | - | 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: | |||||||||||||
31-Mar-15 | ||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Continuing Operations | Total Loss Recognized in Continuing Operations | |||||||||||
Operations Location | ||||||||||||||
Commodity derivatives | $ | - | Cost of sales | $ | - | $ | 0.2 | |||||||
Foreign exchange contracts | - | Other income (expense) - net | - | 1.1 | ||||||||||
Total | $ | - | $ | - | $ | 1.3 | ||||||||
31-Mar-14 | ||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Continuing Operations | Total Loss Recognized in Continuing Operations | |||||||||||
Operations Location | ||||||||||||||
Commodity derivatives | $ | - | Cost of sales | $ | 0.5 | $ | 0.5 | |||||||
Total | $ | - | $ | 0.5 | $ | 0.5 | ||||||||
31-Mar-13 | ||||||||||||||
Amount of Loss Recognized in AOCI | Statement of | Loss Reclassified from AOCI into Continuing Operations | Total Loss (Gain) Recognized in Continuing Operations | |||||||||||
Operations Location | ||||||||||||||
Commodity derivatives | $ | 0.5 | Cost of sales | $ | 2.6 | $ | 4.6 | |||||||
Foreign exchange contracts | - | Other income (expense) - net | - | (0.3 | ) | |||||||||
Total | $ | 0.5 | $ | 2.6 | $ | 4.3 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | |||||||||||||||||
Components of accumulated other comprehensive loss | Changes in accumulated other comprehensive loss were as follows: | ||||||||||||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency Translation | Hedges | Benefit Plans | |||||||||||||||
Balance, March 31, 2014 | $ | 27.3 | $ | - | $ | (131.2 | ) | $ | (103.9 | ) | |||||||
Other comprehensive loss before reclassifications | (68.0 | ) | - | (45.2 | ) | (113.2 | ) | ||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 5.4 | 5.4 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (0.1 | ) | (0.1 | ) | |||||||||||
Income taxes | - | - | 13.2 | 13.2 | |||||||||||||
Total other comprehensive loss | (68.0 | ) | - | (26.7 | ) | (94.7 | ) | ||||||||||
Balance, March 31, 2015 | $ | (40.7 | ) | $ | - | $ | (157.9 | ) | $ | (198.6 | ) | ||||||
Foreign | Cash Flow | Defined | Total | ||||||||||||||
Currency Translation | Hedges | Benefit Plans | |||||||||||||||
Balance, March 31, 2013 | $ | 17.8 | $ | (1.1 | ) | $ | (145.1 | ) | $ | (128.4 | ) | ||||||
Other comprehensive income before reclassifications | 9.5 | - | 18.7 | 28.2 | |||||||||||||
Reclassifications: | |||||||||||||||||
Amortization of unrecognized net loss (a) | - | - | 6.2 | 6.2 | |||||||||||||
Amortization of unrecognized prior service credit (a) | - | - | (1.2 | ) | (1.2 | ) | |||||||||||
Commodity derivatives (b) | - | 0.5 | - | 0.5 | |||||||||||||
Income taxes | - | 0.6 | (9.8 | ) | (9.2 | ) | |||||||||||
Total other comprehensive income | 9.5 | 1.1 | 13.9 | 24.5 | |||||||||||||
Balance, March 31, 2014 | $ | 27.3 | $ | - | $ | (131.2 | ) | $ | (103.9 | ) | |||||||
(a) | Amounts are included in the calculation of net periodic benefit cost for the Company’s defined benefit plans, which include pension and other postretirement plans. See Note 17 for additional information about the Company’s pension plans. | ||||||||||||||||
(b) | Reclassifications for commodity derivatives are included in cost of sales. |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||||||
Segment and Geographic Information [Abstract] | |||||||||||||||||||||||||
Net sales, gross profit, operating income and total assets by segment | The following is a summary of net sales, gross profit, and operating income by segment: | ||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Net sales: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 573.5 | $ | 568.7 | $ | 564.5 | |||||||||||||||||||
Europe | 578.2 | 584.4 | 498 | ||||||||||||||||||||||
South America | 93.9 | 122.7 | 133.8 | ||||||||||||||||||||||
Asia | 81.2 | 71.5 | 59.5 | ||||||||||||||||||||||
Building HVAC | 186.3 | 146.5 | 139.3 | ||||||||||||||||||||||
Segment total | 1,513.10 | 1,493.80 | 1,395.10 | ||||||||||||||||||||||
Corporate and eliminations | (16.7 | ) | (16.2 | ) | (19.1 | ) | |||||||||||||||||||
Net sales | $ | 1,496.40 | $ | 1,477.60 | $ | 1,376.00 | |||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Gross profit: | $'s | % of sales | $'s | % of sales | $'s | % of sales | |||||||||||||||||||
North America | $ | 97 | 16.9 | % | $ | 93.5 | 16.4 | % | $ | 81.4 | 14.4 | % | |||||||||||||
Europe | 68.7 | 11.9 | % | 70.8 | 12.1 | % | 61 | 12.3 | % | ||||||||||||||||
South America | 12.1 | 12.8 | % | 20.8 | 16.9 | % | 22.5 | 16.8 | % | ||||||||||||||||
Asia | 11.5 | 14.2 | % | 8.9 | 12.5 | % | 1.7 | 2.8 | % | ||||||||||||||||
Building HVAC | 55.9 | 30 | % | 43.4 | 29.6 | % | 40.8 | 29.3 | % | ||||||||||||||||
Segment total | 245.2 | 16.2 | % | 237.4 | 15.9 | % | 207.4 | 14.9 | % | ||||||||||||||||
Corporate and eliminations | 1.3 | - | 0.8 | - | 1.2 | - | |||||||||||||||||||
Gross profit | $ | 246.5 | 16.5 | % | $ | 238.2 | 16.1 | % | $ | 208.6 | 15.2 | % | |||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Operating income: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 45.9 | $ | 42.1 | $ | 39.2 | |||||||||||||||||||
Europe | 25.7 | 9.6 | (25.4 | ) | |||||||||||||||||||||
South America | (12.3 | ) | 7.5 | 11.2 | |||||||||||||||||||||
Asia | 0.3 | (3.3 | ) | (8.8 | ) | ||||||||||||||||||||
Building HVAC | 19.1 | 9.4 | 10 | ||||||||||||||||||||||
Segment total | 78.7 | 65.3 | 26.2 | ||||||||||||||||||||||
Corporate and eliminations | (26.0 | ) | (28.1 | ) | (26.8 | ) | |||||||||||||||||||
Operating income (loss) | $ | 52.7 | $ | 37.2 | $ | (0.6 | ) | ||||||||||||||||||
The following is a summary of total assets by segment: | |||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
North America | $ | 231.8 | $ | 218.1 | |||||||||||||||||||||
Europe | 283.1 | 367.9 | |||||||||||||||||||||||
South America | 46.5 | 80.1 | |||||||||||||||||||||||
Asia | 92.4 | 92.8 | |||||||||||||||||||||||
Building HVAC | 131.4 | 132.7 | |||||||||||||||||||||||
Corporate and eliminations | 146.4 | 140.7 | |||||||||||||||||||||||
Total assets | $ | 931.6 | $ | 1,032.30 | |||||||||||||||||||||
Summary of capital expenditures and depreciation and amortization expense by segment | The following is a summary of capital expenditures and depreciation and amortization expense by segment: | ||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Capital expenditures: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 25.9 | $ | 18.9 | $ | 19 | |||||||||||||||||||
Europe | 21.5 | 22.9 | 16.5 | ||||||||||||||||||||||
South America | 4.3 | 5.7 | 3.4 | ||||||||||||||||||||||
Asia | 3.8 | 4.6 | 7.8 | ||||||||||||||||||||||
Building HVAC | 2.8 | 1 | 3.1 | ||||||||||||||||||||||
Total capital expenditures | $ | 58.3 | $ | 53.1 | $ | 49.8 | |||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
Depreciation and amortization expense: | 2015 | 2014 | 2013 | ||||||||||||||||||||||
North America | $ | 18.1 | $ | 19.3 | $ | 20.1 | |||||||||||||||||||
Europe | 19.8 | 26.6 | 23.4 | ||||||||||||||||||||||
South America | 3.2 | 3.3 | 3.7 | ||||||||||||||||||||||
Asia | 7.2 | 6.7 | 6.4 | ||||||||||||||||||||||
Building HVAC | 3.3 | 2.2 | 2.2 | ||||||||||||||||||||||
Total depreciation and amortization expense | $ | 51.6 | $ | 58.1 | $ | 55.8 | |||||||||||||||||||
Summary of net sales and long-lived assets by geographical area | The following is a summary of net sales by geographical area, based upon the location of the selling unit: | ||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
United States | $ | 669.3 | $ | 645.7 | $ | 637.4 | |||||||||||||||||||
Germany | 193.8 | 229.5 | 214.8 | ||||||||||||||||||||||
Hungary | 161 | 150.3 | 117.6 | ||||||||||||||||||||||
Austria | 118.7 | 109.8 | 97.7 | ||||||||||||||||||||||
Brazil | 93.2 | 122 | 128.8 | ||||||||||||||||||||||
Other | 260.4 | 220.3 | 179.7 | ||||||||||||||||||||||
Net sales | $ | 1,496.40 | $ | 1,477.60 | $ | 1,376.00 | |||||||||||||||||||
Summary of property, plant and equipment by geographical area | The following is a summary of property, plant and equipment by geographical area: | ||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||
United States | $ | 105 | $ | 100.7 | |||||||||||||||||||||
Germany | 66 | 81.8 | |||||||||||||||||||||||
Other European countries | 79.9 | 100 | |||||||||||||||||||||||
China | 36.3 | 38.9 | |||||||||||||||||||||||
Other | 34.9 | 38.2 | |||||||||||||||||||||||
Total property, plant and equipment | $ | 322.1 | $ | 359.6 | |||||||||||||||||||||
Summary of net sales by product type | The following is a summary of net sales by product type: | ||||||||||||||||||||||||
Years ended March 31, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||||||
Modules/assemblies | $ | 367.5 | $ | 379.9 | $ | 358.5 | |||||||||||||||||||
Oil coolers | 233 | 215.4 | 194.1 | ||||||||||||||||||||||
HVAC equipment | 199.6 | 159.5 | 151.8 | ||||||||||||||||||||||
EGR coolers | 183.5 | 172.5 | 136.1 | ||||||||||||||||||||||
Charge air coolers | 148.9 | 157 | 161.8 | ||||||||||||||||||||||
Condensers | 140 | 129.2 | 128.8 | ||||||||||||||||||||||
Radiators | 124.8 | 129 | 134.4 | ||||||||||||||||||||||
Other | 99.1 | 135.1 | 110.5 | ||||||||||||||||||||||
Net sales | $ | 1,496.40 | $ | 1,477.60 | $ | 1,376.00 |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||||
Summary of quarterly financial data | Quarterly financial data is summarized below for the years ended March 31, 2015 and 2014: | ||||||||||||||||||||
Fiscal 2015 quarters ended | |||||||||||||||||||||
June | Sept. | Dec. | March | Fiscal 2015 | |||||||||||||||||
Net sales | $ | 392.5 | $ | 377.3 | $ | 363.6 | $ | 363 | $ | 1,496.40 | |||||||||||
Gross profit | 67.7 | 56.7 | 59.4 | 62.7 | 246.5 | ||||||||||||||||
Earnings (loss) from continuing operations (a) | 14.1 | 2 | 9.1 | (3.0 | ) | 22.2 | |||||||||||||||
Net earnings (loss) attributable to Modine (a) | 13.7 | 1.7 | 9.6 | (3.2 | ) | 21.8 | |||||||||||||||
Net earnings (loss) per share attributable to Modine shareholders: | |||||||||||||||||||||
Basic | $ | 0.29 | $ | 0.04 | $ | 0.2 | $ | (0.07 | ) | $ | 0.46 | ||||||||||
Diluted | 0.28 | 0.04 | 0.2 | (0.07 | ) | 0.45 | |||||||||||||||
Fiscal 2014 quarters ended | |||||||||||||||||||||
June | Sept. | Dec. | March | Fiscal 2014 | |||||||||||||||||
Net sales | $ | 375.8 | $ | 364.2 | $ | 347 | $ | 390.6 | $ | 1,477.60 | |||||||||||
Gross profit | 61.9 | 57.2 | 56.8 | 62.3 | 238.2 | ||||||||||||||||
Earnings (loss) from continuing operations (a) (b) | 10.6 | 5 | (3.4 | ) | 119.7 | 131.9 | |||||||||||||||
Net earnings (loss) attributable to Modine (a) (b) | 10 | 4.6 | (3.6 | ) | 119.4 | 130.4 | |||||||||||||||
Net earnings (loss) per share attributable to Modine shareholders: | |||||||||||||||||||||
Basic | $ | 0.21 | $ | 0.1 | $ | (0.08 | ) | $ | 2.51 | $ | 2.75 | ||||||||||
Diluted | 0.21 | 0.1 | (0.08 | ) | 2.49 | 2.72 | |||||||||||||||
(a) | The quarterly financial data presented above includes restructuring expenses and impairment charges related to restructuring actions in Europe, North America, and South America segments. During fiscal 2015, restructuring expenses totaled $0.8 million, $1.0 million, $1.9 million, and $1.0 million for the quarters ended June 30, 2014, September 30, 2014, December 31, 2014, and March 31, 2015, respectively. During the third quarter of fiscal 2015, the Company sold a wind tunnel within the Europe segment and recognized a gain of $3.2 million. During the fourth quarter of fiscal 2015, the Company recorded a $7.8 million goodwill impairment charge related to its South America segment. Also during the fourth quarter of fiscal 2015, the Company recorded a $3.2 million charge in its South America segment associated with a legal matter in Brazil. During fiscal 2014, restructuring expenses totaled $0.5 million, $0.6 million, $9.4 million, and $5.6 million for the quarters ended June 30, 2013, September 30, 2013, December 31, 2013, and March 31, 2014, respectively. The Company recorded impairment charges of $2.0 million and $1.2 million during the quarters ended December 31, 2013 and March 31, 2014, respectively. See Notes 6, 14, and 19 for additional information. | ||||||||||||||||||||
(b) | The quarter ended March 31, 2014 was benefited by the reversal of U.S. income tax valuation allowances totaling $119.2 million. See Note 8 for additional information. |
Significant_Accounting_Policie3
Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2012 |
Consolidation principles [Abstract] | |||||
Investments in non-consolidated affiliated companies (in hundredths) | 20.00% | ||||
Shipping and handling costs [Abstract] | |||||
Shipping and handling costs | $4.90 | $4 | $4.30 | ||
Research and development [Abstract] | |||||
Research and development cost | 62 | 61.7 | 68.4 | ||
Trade accounts receivable [Abstract] | |||||
Trade receivables, allowance for doubtful accounts | 1 | 1.1 | |||
Trade receivables sold without recourse | 87 | 82.4 | 99.1 | ||
Loss on the sale of accounts receivables | -0.3 | -0.3 | -0.3 | ||
Goodwill impaired [Abstract] | |||||
Goodwill impairment charges | 7.8 | ||||
Supplemental cash flow information [Abstract] | |||||
Interest paid | 10.3 | 12.6 | 11.6 | ||
Income taxes paid | 15.9 | 11.4 | 12.4 | ||
Error Correction [Member] | |||||
Out of period adjustment [Abstract] | |||||
Pre-tax earnings | -0.6 | 0.5 | |||
After-tax earnings | -0.5 | ||||
Tools [Member] | |||||
Tooling [Abstract] | |||||
Property, plant and equipment, depreciable lives | 3 years | ||||
Company-owned tooling, net | 18.7 | 28.6 | |||
Customer owned tooling receivable | 11.6 | 10.3 | |||
Electronics Cooling Business [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Final payment on promissory note | 1.5 | ||||
Gain on sale (Pre-tax) | 0.9 | ||||
Gain on sale (After-tax) | $0.60 |
Airedale_Facility_Fire_Details
Airedale Facility Fire (Details) (Loss by Fire [Member], USD $) | 12 Months Ended | 19 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2015 | Mar. 31, 2014 |
Loss by Fire [Member] | |||
Unusual or Infrequent Item [Line Items] | |||
Recoveries from insurance included in selling, general, and administrative expenses | $4.60 | ||
Cash proceeds received from insurance provider | 62.7 | ||
Inventory write off | 4.7 | ||
Equipment write off | 1.4 | ||
Other costs attributable to fire | 22 | ||
Aggregate losses and costs | 28.1 | ||
Company paid reconstruction costs | 21.2 | ||
Liability to rebuild damaged facility | 48 | 48 | 45 |
Current liability to rebuild damaged facility | 37 | ||
Noncurrent liability to rebuild damaged facility | 8 | ||
Insurance receivable | 18 | 18 | 25.4 |
Insurance receivable current | 18.4 | ||
Insurance receivable noncurrent | $7 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2014 | Jul. 25, 2012 | Mar. 31, 2007 |
Business Acquisition [Line Items] | ||||||
Cash consideration, net of cash acquired | $0 | $7.80 | $4.90 | |||
Barkell Limited of Consett, United Kingdom [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interests acquired (in hundredths) | 100.00% | |||||
Cash consideration, net of cash acquired | 7.8 | |||||
Purchase price allocation resulted in acquired intangible assets | 4.7 | |||||
Purchase price allocation resulted in property, plant and equipment | 2 | |||||
Purchase price allocation, working capital net assets | 1.1 | |||||
Intangible assets, amortization period | 10 years | |||||
Geofinity Manufacturing of Surrey, British Columbia [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration, net of cash acquired | 4.9 | |||||
Purchase price allocation resulted in acquired intangible assets | 3.5 | |||||
Purchase price allocation, working capital net assets | 0.6 | |||||
Purchase price allocation, goodwill | 0.8 | |||||
Intangible assets, amortization period | 10 years | |||||
Radiadores Visconde Ltda [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of interests acquired (in hundredths) | 50.00% | |||||
Notes payable | 2 | |||||
Radiadores Visconde Ltda [Member] | South America [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Selling, general and administrative expense, decrease | $2 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Deferred Compensation Liability [Abstract] | ||
Deferred compensation obligations | $3 | $2.60 |
Trading securities | 3 | 2.6 |
Assets Held For Sale [Abstract] | ||
Carrying value of assets held-for-sale | 3.2 | 11.6 |
U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 217 | 213.7 |
Money Market Investments [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 8.1 | 11.3 |
Common Stocks [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 42.7 | 42.2 |
Corporate Bonds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 23.5 | 21.3 |
Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 80.4 | 80.8 |
Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 15.5 | 14.1 |
US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 39.8 | 37 |
Other [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 7 | 7 |
Level 1 [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 125.7 | 124.7 |
Level 1 [Member] | Money Market Investments [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 1 [Member] | Common Stocks [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 40.5 | 40.1 |
Level 1 [Member] | Corporate Bonds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 1 [Member] | Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 69 | 68.9 |
Level 1 [Member] | Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 15.5 | 14.1 |
Level 1 [Member] | US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 1 [Member] | Other [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0.7 | 1.6 |
Level 2 [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 91.3 | 89 |
Level 2 [Member] | Money Market Investments [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 8.1 | 11.3 |
Level 2 [Member] | Common Stocks [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 2.2 | 2.1 |
Level 2 [Member] | Corporate Bonds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 23.5 | 21.3 |
Level 2 [Member] | Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 11.4 | 11.9 |
Level 2 [Member] | Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 2 [Member] | US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 39.8 | 37 |
Level 2 [Member] | Other [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 6.3 | 5.4 |
Level 3 [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 3 [Member] | Money Market Investments [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 3 [Member] | Common Stocks [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 3 [Member] | Corporate Bonds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 3 [Member] | Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 3 [Member] | Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 3 [Member] | US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | 0 | 0 |
Level 3 [Member] | Other [Member] | U.S. Pension Plans [Member] | ||
U.S. pension plan assets [Abstract] | ||
Fair value of plan assets | $0 | $0 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Compensation Expense [Abstract] | |||
Stock-based compensation cost | $4 | $3.60 | $3.10 |
Stock Options [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Weighted average fair value of options (in dollars per share) | $10.21 | $7.76 | $4.26 |
Expected life of awards in years | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate (in hundredths) | 2.10% | 1.30% | 0.90% |
Expected volatility of the Company's stock (in hundredths) | 76.10% | 88.70% | 87.40% |
Expected dividend yield on the Company's stock (in hundredths) | 0.00% | 0.00% | 0.00% |
Annual vesting percentage (in hundredths) | 25.00% | 25.00% | |
Award performance period | 4 years | 4 years | |
Vesting percentage after grant date (in hundredths) | 25.00% | ||
Pre-vesting forfeiture rate (in hundredths) | 2.50% | ||
Compensation Expense [Abstract] | |||
Stock-based compensation cost | 0.9 | 0.8 | 1.1 |
Total fair value of stock options vesting | 0.9 | 0.8 | 1.3 |
Unrecognized compensation costs | 1.7 | ||
Weighted average period recognized | 2 years 8 months 12 days | ||
Shares [Rollforward] | |||
Outstanding, beginning (in shares) | 1.6 | ||
Granted (in shares) | 0.1 | ||
Exercised (in shares) | -0.1 | ||
Forfeited or expired (in shares) | -0.1 | ||
Outstanding, ending (in shares) | 1.5 | 1.6 | |
Exercisable, March 31 (in shares) | 1.2 | ||
Weighted average exercise price [Rollforward] | |||
Outstanding, beginning (in dollars per share) | $13.15 | ||
Granted (in dollars per share) | $14.94 | ||
Exercised (in dollars per share) | $8.71 | ||
Forfeited or expired (in dollars per share) | $29.41 | ||
Outstanding, ending (in dollars per share) | $11.99 | $13.15 | |
Exercisable, March 31 (in dollars per share) | $12.13 | ||
Options, Outstanding, Weighted average remaining contractual term | 5 years 3 months 18 days | ||
Options, Outstanding, Aggregate intrinsic value | 5.7 | ||
Options, Exercisable, Weighted average remaining contractual term | 4 years 6 months | ||
Options, Exercisable, Aggregate intrinsic value | 4.9 | ||
Additional information related to stock options exercised [Abstract] | |||
Intrinsic value of stock options exercised | 0.4 | 1.1 | 0.1 |
Proceeds from stock options exercised | 0.6 | 1.1 | 0.1 |
Stock Options [Member] | Maximum [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Stock option term | 10 years | ||
Restricted Stock [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage (in hundredths) | 25.00% | ||
Award performance period | 4 years | ||
Compensation Expense [Abstract] | |||
Stock-based compensation cost | 2.8 | 2.2 | 1.8 |
Total fair value of stock options vesting | 2.3 | 1.6 | 1.3 |
Unrecognized compensation costs | 4.6 | ||
Weighted average period recognized | 2 years 6 months | ||
Shares [Roll Forward] | |||
Non-vested balance, beginning (in shares) | 0.6 | ||
Granted (in shares) | 0.3 | ||
Vested (in shares) | -0.2 | ||
Non-vested balance, ending (in shares) | 0.7 | 0.6 | |
Weighted average price [Rollforward] | |||
Non-vested balance, beginning (in dollars per share) | $8.66 | ||
Granted (in dollars per share) | $14.92 | ||
Vested (in dollars per share) | $9.73 | ||
Non-vested balance, ending (in dollars per share) | $10.68 | $8.66 | |
Restricted Stock - Performance Based Shares [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Award performance period | 3 years | 3 years | |
Compensation Expense [Abstract] | |||
Stock-based compensation cost | 0.3 | 0.6 | 0.2 |
Unrecognized compensation costs | $1.60 | ||
Weighted average period recognized | 1 year 9 months 18 days | ||
2008 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 4 |
Restructuring_Activities_Detai
Restructuring Activities (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Apr. 30, 2015 |
Restructuring and repositioning expenses [Abstract] | ||||||||||||
Employee severance and related benefits | $1.20 | $14.80 | $14.90 | |||||||||
Accelerated depreciation | 0 | 4.3 | 0 | |||||||||
Other restructuring and repositioning expenses | 3.5 | 1.3 | 2.1 | |||||||||
Total | 4.7 | 20.4 | 17 | |||||||||
Changes in accrued severance [Roll Forward] | ||||||||||||
Beginning balance | 19.4 | 11.6 | 19.4 | 11.6 | ||||||||
Additions | 1.2 | 14.8 | ||||||||||
Payments | -7.3 | -7.8 | ||||||||||
Effect of exchange rate changes | -3.4 | 0.8 | ||||||||||
Ending balance | 9.9 | 19.4 | 9.9 | 19.4 | 11.6 | |||||||
Other [Abstract] | ||||||||||||
Restructuring expenses | 1 | 1.9 | 1 | 0.8 | 5.6 | 9.4 | 0.6 | 0.5 | 4.7 | 16.1 | 17 | |
Asset impairment charges | 7.8 | 1.2 | 2 | 7.8 | 3.2 | 25.9 | ||||||
Proceeds from the sale of assets | 7.6 | 2.9 | 0.4 | |||||||||
Gain on the sale of assets | 3.2 | 3.2 | 0 | 0 | ||||||||
Assets held for sale | 3.2 | 11.6 | 3.2 | 11.6 | ||||||||
Cost of Sales [Member] | ||||||||||||
Restructuring and repositioning expenses [Abstract] | ||||||||||||
Total | 4.3 | |||||||||||
Europe Segment [Member] | ||||||||||||
Other [Abstract] | ||||||||||||
Asset impairment charges | 2 | 24.1 | ||||||||||
Proceeds from the sale of assets | 5.8 | |||||||||||
Gain on the sale of assets | 3.2 | |||||||||||
Amount reclassified from assets held for sale to property, plant and equipment | 4.7 | 4.7 | ||||||||||
North America Segment [Member] | ||||||||||||
Other [Abstract] | ||||||||||||
Asset impairment charges | 1.2 | 1.8 | ||||||||||
North America Segment [Member] | Subsequent Event [Member] | ||||||||||||
Other [Abstract] | ||||||||||||
Expected employee severance costs during fiscal 2016 due to planned plant closure | $2 |
Other_Income_and_Expense_Detai
Other Income and Expense (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Other Income and Expense [Abstract] | |||
Equity in earnings of non-consolidated affiliate | $0.60 | $0.70 | $0.30 |
Interest income | 0.5 | 0.5 | 0.9 |
Foreign currency transactions | -0.9 | -2 | -1.1 |
Other non-operating income - net | 0 | 0 | 0.1 |
Total other income (expense) - net | $0.20 | ($0.80) | $0.20 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Components of earnings (loss) from continuing operations before income taxes [Abstract] | ||||
United States | $31.10 | $14.10 | $10.20 | |
Foreign | 10.1 | 9.9 | -23.2 | |
Earnings (loss) from continuing operations before income taxes | 41.2 | 24 | -13 | |
Federal [Abstract] | ||||
Current | 0.4 | -2 | 2.6 | |
Deferred | 7.1 | -95.8 | -2.6 | |
State [Abstract] | ||||
Current | 0 | 0.2 | 0.2 | |
Deferred | 1.1 | -21.4 | -0.2 | |
Foreign [Abstract] | ||||
Current | 12.7 | 10 | 6.4 | |
Deferred | -2.3 | 1.1 | 3.4 | |
Total income tax expense (benefit) | 19 | -107.9 | 9.8 | |
Reconciliation of federal statutory income tax rate to company's effective income tax rate [Abstract] | ||||
Statutory federal tax (in hundredths) | 35.00% | 35.00% | 35.00% | |
State taxes, net of federal benefit (in hundredths) | 2.40% | 2.10% | -1.30% | |
Taxes on non-U.S. earnings and losses (in hundredths) | -4.90% | -3.80% | -23.80% | |
Valuation allowance (in hundredths) | 8.30% | -471.70% | -59.30% | |
Tax credits (in hundredths) | -6.10% | -7.10% | 37.00% | |
Compensation (in hundredths) | 1.00% | 0.40% | -13.00% | |
Tax rate or law changes | 1.20% | -9.20% | 0.90% | |
Uncertain tax positions net of settlements | 2.20% | 0.40% | -41.90% | |
Brazil interest on equity | 0.00% | -1.70% | 3.20% | |
Dividend repatriation (in hundredths) | 2.40% | 5.80% | -11.40% | |
Other (in hundredths) | 4.60% | 0.20% | -0.80% | |
Effective tax rate (in hundredths) | 46.10% | -449.60% | -75.40% | |
Valuation Allowance [Line Items] | ||||
Reversal of deferred tax asset valuation allowances | 119.2 | 119.2 | ||
Foreign tax benefit from law change | 2.2 | |||
Deferred tax assets [Abstract] | ||||
Accounts receivable | 0.2 | 0.3 | 0.2 | |
Inventories | 4.1 | 3.8 | 4.1 | |
Plant and equipment | 2.4 | 0.8 | 2.4 | |
Pension and employee benefits | 39.1 | 50.5 | 39.1 | |
Net operating loss, capital loss and credit carryforwards | 122.4 | 105 | 122.4 | |
Other, principally accrued liabilities | 10.3 | 6.8 | 10.3 | |
Total gross deferred tax assets | 178.5 | 167.2 | 178.5 | |
Less: valuation allowance | -61.2 | -48 | -61.2 | |
Net deferred tax assets | 117.3 | 119.2 | 117.3 | |
Deferred tax liabilities [Abstract] | ||||
Goodwill | 4.2 | 0.6 | 4.2 | |
Plant and equipment | 7.6 | 5.3 | 7.6 | |
Other | 1.7 | 1 | 1.7 | |
Total gross deferred tax liabilities | 13.5 | 6.9 | 13.5 | |
Net deferred tax asset (liability) | 103.8 | 112.3 | 103.8 | |
Current deferred tax asset | 13 | 13.4 | 13 | |
Noncurrent deferred tax asset | 98.6 | 102.7 | 98.6 | |
Current deferred tax liability (other current liabilities) | -0.5 | -0.4 | -0.5 | |
Noncurrent deferred tax liability | -7.3 | -3.4 | -7.3 | |
Reconciliation of unrecognized tax benefits [Roll Forward] | ||||
Balance, April 1 | 2.1 | 9 | ||
Gross increases - tax positions in prior period | 3.1 | 2.5 | ||
Gross decreases - tax positions in prior period | 0 | -7 | ||
Gross increases - tax positions in current period | 0.4 | 0.1 | ||
Settlements | 0 | -1.9 | ||
Lapse of statute of limitations | 0 | -0.8 | ||
Effect of exchange rate changes | 0 | 0.2 | ||
Balance, March 31 | 2.1 | 5.6 | 2.1 | 9 |
Unrecognized tax benefits that would impact effective tax rate | 3 | |||
Unrecognized tax benefits accrued interest and penalties | 0 | 0 | 0 | |
Undistributed foreign earnings [Abstract] | ||||
Tax on undistributed earnings of certain joint equity investment | 0.8 | |||
Undistributed earnings in remaining foreign operations | 442 | |||
Foreign Tax Jurisdictions [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Foreign tax credit carry forwards | 1.8 | |||
Foreign Tax Jurisdictions [Member] | Minimum [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss credit carryforward, expiration date | 31-Mar-16 | |||
Foreign Tax Jurisdictions [Member] | Maximum [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss credit carryforward, expiration date | 31-Mar-17 | |||
Federal and State [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax credit carryforwards, research and development | 20.9 | |||
Federal and State [Member] | Minimum [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss credit carryforward, expiration date | 31-Mar-18 | |||
Federal and State [Member] | Maximum [Member] | ||||
Tax Credit Carryforward [Line Items] | ||||
Tax loss credit carryforward, expiration date | 31-Mar-35 | |||
Foreign Tax Jurisdictions [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards | 186 | |||
Tax losses subject to expiration | 159.3 | |||
Tax losses not subject to expiration | 145.3 | |||
Foreign Tax Jurisdictions [Member] | Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards, expiration date | 31-Mar-16 | |||
Foreign Tax Jurisdictions [Member] | Maximum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards, expiration date | 31-Mar-34 | |||
State and Local [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards | 304.6 | |||
State and Local [Member] | Minimum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards, expiration date | 31-Mar-16 | |||
State and Local [Member] | Maximum [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax loss carryforwards, expiration date | 31-Mar-34 | |||
Austria [Member] | ||||
Income Tax Examination [Line Items] | ||||
Open tax year for examination by tax jurisdictions | Fiscal 2012 - 2014 | |||
Brazil [Member] | ||||
Income Tax Examination [Line Items] | ||||
Open tax year for examination by tax jurisdictions | Calendar 2010 - 2014 | |||
Germany [Member] | ||||
Income Tax Examination [Line Items] | ||||
Open tax year for examination by tax jurisdictions | Fiscal 2011 - 2014 | |||
United States [Member] | ||||
Income Tax Examination [Line Items] | ||||
Open tax year for examination by tax jurisdictions | Fiscal 2012 - 2014 | |||
Foreign Tax Jurisdictions [Member] | ||||
Valuation Allowance [Line Items] | ||||
Valuation allowance recorded against deferred tax assets | $2.60 | $12.30 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | ||||||||
Basic [Abstract] | |||||||||||||||||||
Earnings (loss) from continuing operations | ($3) | [1] | $9.10 | [1] | $2 | [1] | $14.10 | [1] | $119.70 | [1],[2] | ($3.40) | [1],[2] | $5 | [1],[2] | $10.60 | [1],[2] | $22.20 | $131.90 | ($22.80) |
Less: Net earnings attributable to noncontrolling interest | -1 | -1.5 | -1.4 | ||||||||||||||||
Less: Undistributed earnings attributable to unvested shares | -0.2 | -1.7 | 0 | ||||||||||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 21 | 128.7 | -24.2 | ||||||||||||||||
Earnings from discontinued operations, net of income taxes | 0.6 | 0 | 0 | ||||||||||||||||
Net earnings (loss) available to Modine shareholders | 21.6 | 128.7 | -24.2 | ||||||||||||||||
Weighted average shares outstanding - basic (in shares) | 47.2 | 46.9 | 46.6 | ||||||||||||||||
Basic Earnings Per Share [Abstract] | |||||||||||||||||||
Earnings (loss) per share - continuing operations (in dollars per share) | $0.45 | $2.75 | ($0.52) | ||||||||||||||||
Earnings per share - discontinued operations (in dollars per share) | $0.01 | $0 | $0 | ||||||||||||||||
Net earnings (loss) per share - basic (in dollars per share) | $0.46 | $2.75 | ($0.52) | ||||||||||||||||
Diluted [Abstract] | |||||||||||||||||||
Earnings (loss) from continuing operations | -3 | [1] | 9.1 | [1] | 2 | [1] | 14.1 | [1] | 119.7 | [1],[2] | -3.4 | [1],[2] | 5 | [1],[2] | 10.6 | [1],[2] | 22.2 | 131.9 | -22.8 |
Less: Net earnings attributable to noncontrolling interest | -1 | -1.5 | -1.4 | ||||||||||||||||
Less: Undistributed earnings attributable to unvested shares | -0.2 | -0.9 | 0 | ||||||||||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 21 | 129.5 | -24.2 | ||||||||||||||||
Earnings from discontinued operations, net of income taxes | 0.6 | 0 | 0 | ||||||||||||||||
Net earnings (loss) available to Modine shareholders | $21.60 | $129.50 | ($24.20) | ||||||||||||||||
Weighted average shares outstanding - basic (in shares) | 47.2 | 46.9 | 46.6 | ||||||||||||||||
Effect of dilutive securities (in shares) | 0.6 | 0.7 | 0 | ||||||||||||||||
Weighted average shares outstanding - diluted (in shares) | 47.8 | 47.6 | 46.6 | ||||||||||||||||
Diluted Earnings Per Share [Abstract] | |||||||||||||||||||
Earnings (loss) per share - continuing operations (in dollars per share) | $0.44 | $2.72 | ($0.52) | ||||||||||||||||
Earnings per share - discontinued operations (in dollars per share) | $0.01 | $0 | $0 | ||||||||||||||||
Net earnings (loss) per share - diluted (in dollars per share) | ($0.07) | $0.20 | $0.04 | $0.28 | $2.49 | ($0.08) | $0.10 | $0.21 | $0.45 | $2.72 | ($0.52) | ||||||||
Potential dilutive securities (in shares) | 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) | 0.6 | 0.8 | 1.1 | ||||||||||||||||
[1] | The quarterly financial data presented above includes restructuring expenses and impairment charges related to restructuring actions in Europe, North America, and South America segments. During fiscal 2015, restructuring expenses totaled $0.8 million, $1.0 million, $1.9 million, and $1.0 million for the quarters ended June 30, 2014, September 30, 2014, December 31, 2014, and March 31, 2015, respectively. During the third quarter of fiscal 2015, the Company sold a wind tunnel within the Europe segment and recognized a gain of $3.2 million. During the fourth quarter of fiscal 2015, the Company recorded a $7.8 million goodwill impairment charge related to its South America segment. Also during the fourth quarter of fiscal 2015, the Company recorded a $3.2 million charge in its South America segment associated with a legal matter in Brazil. During fiscal 2014, restructuring expenses totaled $0.5 million, $0.6 million, $9.4 million, and $5.6 million for the quarters ended June 30, 2013, September 30, 2013, December 31, 2013, and March 31, 2014, respectively. The Company recorded impairment charges of $2.0 million and $1.2 million during the quarters ended December 31, 2013 and March 31, 2014, respectively. See Notes 6, 14, and 19 for additional information. | ||||||||||||||||||
[2] | The quarter ended March 31, 2014 was benefited by the reversal of U.S. income tax valuation allowances totaling $119.2 million. See Note 8 for additional information. |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials and work in process | $80.70 | $89.20 |
Finished goods | 27 | 27.6 |
Total inventories | $107.70 | $116.80 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $994.80 | $1,078.60 | |
Less accumulated depreciation | -672.7 | -719 | |
Net property, plant and equipment | 322.1 | 359.6 | |
Depreciation expense | 50 | 57.3 | 55.1 |
(Loss) gain from disposition of property, plant and equipment | -1.1 | -2.6 | -2.5 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 8.2 | 10.4 | |
Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 221 | 228.1 | |
Buildings and Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, depreciable lives | 10 years | ||
Buildings and Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, depreciable lives | 40 years | ||
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 652 | 715.1 | |
Machinery and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, depreciable lives | 3 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, depreciable lives | 12 years | ||
Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 81.9 | 89.5 | |
Office Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, depreciable lives | 3 years | ||
Office Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, depreciable lives | 10 years | ||
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $31.70 | $35.50 |
Investment_in_Affiliate_Detail
Investment in Affiliate (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent owned (in hundredths) | 20.00% | ||
Earnings from equity method investments | $0.60 | $0.70 | $0.30 |
Nikkei Heat Exchanger [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent owned (in hundredths) | 50.00% | ||
Equity method investment | 3.2 | 3.4 | |
Earnings from equity method investments | $0.60 | $0.70 | $0.30 |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | $16.80 | $18.30 | |
Accumulated Amortization | -6.9 | -5.9 | |
Net Intangible Assets | 9.9 | 12.4 | |
Amortization expense | 1.6 | 0.8 | 0.7 |
Future amortization expense for intangible assets [Abstract] | |||
2016 | 1.6 | ||
2017 | 1.6 | ||
2018 | 1.6 | ||
2019 | 1.5 | ||
2020 | 1.4 | ||
2021 & Beyond | 2.2 | ||
Trade Names [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | 9.1 | 10.1 | |
Accumulated Amortization | -5.8 | -5.7 | |
Net Intangible Assets | 3.3 | 4.4 | |
Acquired technology [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | 5.6 | 5.8 | |
Accumulated Amortization | -0.9 | -0.2 | |
Net Intangible Assets | 4.7 | 5.6 | |
Customer relationships [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | 2.1 | 2.4 | |
Accumulated Amortization | -0.2 | 0 | |
Net Intangible Assets | $1.90 | $2.40 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill [Line Items] | ||
Beginning balance | $28.70 | $28.70 |
Impairment charge | -7.8 | |
Effect of exchange rate changes | -4.7 | 0 |
Ending balance | 16.2 | 28.7 |
South America [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 10.9 | 12.2 |
Impairment charge | -7.8 | |
Effect of exchange rate changes | -3.1 | -1.3 |
Ending balance | 0 | 10.9 |
Asia [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 0.5 | 0.5 |
Impairment charge | 0 | |
Effect of exchange rate changes | 0 | 0 |
Ending balance | 0.5 | 0.5 |
Building HVAC [Member] | ||
Goodwill [Line Items] | ||
Beginning balance | 17.3 | 16 |
Impairment charge | 0 | |
Effect of exchange rate changes | -1.6 | 1.3 |
Ending balance | 15.7 | 17.3 |
Europe [Member] | ||
Goodwill [Line Items] | ||
Impairment charge | 8.7 | |
North America [Member] | ||
Goodwill [Line Items] | ||
Impairment charge | $23.80 |
Product_Warranties_Operating_L2
Product Warranties, Operating Leases and Other Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Product Warranties, Operating Leases and Other Commitments [Abstract] | |||
Product warranty period, minimum | 1 year | ||
Product warranty period, maximum | 5 years | ||
Changes in accrued warranty costs [Roll Forward] | |||
Beginning balance | $14 | $12.60 | |
Accruals for warranties issued | 5.8 | 6 | |
Accruals related to pre-existing warranties | 1.5 | 8.3 | |
Settlements | -9.2 | -13 | |
Effect of exchange rate changes | -1.7 | 0.1 | |
Ending balance | 10.4 | 14 | 12.6 |
Rental expense | 11.5 | 11.5 | 11.3 |
Indemnification period, minimum | 1 year | ||
Indemnification period, maximum | 15 years | ||
Capital expenditure commitments | 15.5 | ||
Future minimum rental commitments under non-cancelable operating leases [Abstract] | |||
2016 | 8.2 | ||
2017 | 5.7 | ||
2018 | 4.3 | ||
2019 | 3.8 | ||
2020 | 4 | ||
2021 and beyond | 23.9 | ||
Total future minimum rental commitments | $49.90 |
Indebtedness_Details
Indebtedness (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Long-term Debt and Capital Lease Obligations [Abstract] | ||
Long-term debt | $125.20 | $125.50 |
Capital lease obligations | 4.9 | 6.5 |
Total debt | 130.1 | 132 |
Less current portion | -0.5 | -0.8 |
Total long-term debt | 129.6 | 131.2 |
Maturities of long term debt and capital lease obligations [Abstract] | ||
2016 | 0.5 | |
2017 | 8.3 | |
2018 | 16.3 | |
2019 | 16.3 | |
2020 | 16.3 | |
2021 & beyond | 72.4 | |
Total debt | 130.1 | 132 |
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 175 | |
Expiration date | 31-Aug-18 | |
Available for future borrowings | 216 | |
Foreign credit agreements [Member] | ||
Long-term Debt and Capital Lease Obligations [Abstract] | ||
Long-term debt | 0.2 | 0.5 |
Maturities of long term debt and capital lease obligations [Abstract] | ||
Short-term debt | 18.6 | 32.4 |
Line of Credit Facility [Line Items] | ||
Available for future borrowings | 41 | |
Revolving Credit Facility [Member] | ||
Long-term Debt and Capital Lease Obligations [Abstract] | ||
Long-term debt | 0 | 0 |
Domestic Revolving Credit Facility [Member] | ||
Maturities of long term debt and capital lease obligations [Abstract] | ||
Long-term debt, fair value | 141 | 140 |
Line of Credit Facility [Line Items] | ||
Variable rate basis | LIBOR | |
Basis spread on variable rate (in hundredths) | 1.60% | |
Amount outstanding | 0 | |
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% | |
6.8% Senior Notes [Member] | ||
Long-term Debt and Capital Lease Obligations [Abstract] | ||
Interest rate percentage (in hundredths) | 6.80% | |
Long-term debt | $125 | $125 |
Pension_and_Employee_Benefit_P2
Pension and Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Portion of employee contribution matched (in hundredths) | 50.00% | 50.00% | 50.00% |
Defined contribution plan cost recognized | $5.90 | $8.30 | $4.10 |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contribution by employee (in hundredths) | 5.00% | 5.00% | 5.00% |
Pension Plans [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 295.7 | 309.6 | |
Service cost | 0.5 | 0.6 | 0.6 |
Interest cost | 13 | 13 | 13.5 |
Actuarial (gain) loss | 40.6 | -10.8 | |
Benefits paid | -14.6 | -18.6 | |
Effect of exchange rate changes | -7 | 1.9 | |
Benefit obligation at end of year | 328.2 | 295.7 | 309.6 |
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 213.7 | 200.6 | |
Actual return on plan assets | 10.8 | 22.2 | |
Benefits paid | -14.6 | -18.6 | |
Employer contributions | 7.1 | 9.5 | |
Fair value of plan assets at end of year | 217 | 213.7 | 200.6 |
Funded status at end of year | -111.2 | -82 | |
Amounts recognized in the consolidated balance sheets [Abstract] | |||
Current liability | -0.8 | -1 | |
Noncurrent liability | -110.4 | -81 | |
Total liability | -111.2 | -82 | |
Amounts recognized in accumulated other comprehensive loss [Abstract] | |||
Net actuarial loss (gain) | 192.3 | 153.4 | |
Pension plans with accumulated benefit obligations in excess of plan assets [Abstract] | |||
Accumulated benefit obligation | 325.5 | 293 | |
Components of net periodic benefit costs [Abstract] | |||
Service cost | 0.5 | 0.6 | 0.6 |
Interest cost | 13 | 13 | 13.5 |
Expected return on plan assets | -16.7 | -15.7 | -16.1 |
Amortization of net actuarial loss | 5.5 | 6.3 | 5 |
Net periodic benefit cost | 2.3 | 4.2 | 3 |
Other changes in benefit obligation recognized in other comprehensive loss (income): | |||
Net actuarial loss (gain) | 46.4 | -17.3 | 27 |
Amortization of net actuarial loss | -5.5 | -6.3 | -5 |
Total recognized in other comprehensive loss (income) | 40.9 | -23.6 | 22 |
Reversal of amortization items [Abstract] | |||
Estimated net actuarial loss that will be amortized | 7.2 | ||
Estimated future benefit payments [Abstract] | |||
Anticipated contributions for 2016 fiscal year | 6.7 | ||
2016 | 15.1 | ||
2017 | 15.7 | ||
2018 | 16.9 | ||
2019 | 17.2 | ||
2020 | 18 | ||
2021-2025 | 94 | ||
Postretirement Plans [Member] | |||
Components of net periodic benefit costs [Abstract] | |||
Net periodic benefit cost | 0.1 | 1 | 1.1 |
U.S. Pension Plans [Member] | |||
Change in plan assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 213.7 | ||
Employer contributions | 5.9 | 8 | 9.2 |
Fair value of plan assets at end of year | $217 | $213.70 | |
Weighted-average assumptions used in calculating benefit obligation [Abstract] | |||
Discount rate (in hundredths) | 4.00% | 4.70% | |
Weighted-average assumptions used in calculating plan cost [Abstract] | |||
Discount rate used to determine cost of pension plan (in hundredths) | 4.70% | 4.40% | 4.90% |
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target allocation (in hundredths) | 100.00% | ||
Plan assets (in hundredths) | 100.00% | 100.00% | |
Expected return on plan assets (in hundredths) | 8.00% | 8.00% | 8.00% |
Expected return on plan assets for next fiscal year (in hundredths) | 8.00% | ||
U.S. Pension Plans [Member] | Equity Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target allocation (in hundredths) | 55.00% | ||
Plan assets (in hundredths) | 55.00% | 57.00% | |
U.S. Pension Plans [Member] | Debt Securities [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target allocation (in hundredths) | 38.00% | ||
Plan assets (in hundredths) | 36.00% | 37.00% | |
U.S. Pension Plans [Member] | Alternative Assets [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target allocation (in hundredths) | 5.00% | ||
Plan assets (in hundredths) | 5.00% | 5.00% | |
U.S. Pension Plans [Member] | Cash [Member] | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||
Target allocation (in hundredths) | 2.00% | ||
Plan assets (in hundredths) | 4.00% | 1.00% | |
Foreign Pension Plans [Member] | |||
Weighted-average assumptions used in calculating benefit obligation [Abstract] | |||
Discount rate (in hundredths) | 1.30% | 3.00% | |
Weighted-average assumptions used in calculating plan cost [Abstract] | |||
Discount rate used to determine cost of pension plan (in hundredths) | 3.00% | 3.50% | 5.00% |
Derivative_Instruments_Details
Derivative Instruments (Details) (Not Designated as Hedges [Member], USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
In Millions, unless otherwise specified | ||
Foreign Exchange Contracts [Member] | Other current liabilities [Member] | ||
Derivative instruments [Abstract] | ||
Derivative Liability, Fair Value, Net | $0.30 | $0.20 |
Commodity Derivatives [Member] | Other current liabilities [Member] | ||
Derivative instruments [Abstract] | ||
Derivative Liability, Fair Value, Net | 0.1 | 0.1 |
Commodity Derivatives [Member] | Other noncurrent liabilities [Member] | ||
Derivative instruments [Abstract] | ||
Derivative Liability, Fair Value, Net | $0 | $0.10 |
Derivative_Instruments_Gain_Lo
Derivative Instruments, (Gain) Loss by Hedging Relationship, by Income Statement Location (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Derivative Instruments, (Gain) Loss [Line Items] | |||
Amount of Loss Recognized in AOCI | $0 | $0 | $0.50 |
Total Loss (Gain) Recognized in Continuing Operations | 1.3 | 0.5 | 4.3 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Loss Reclassified from AOCI into Continuing Operations | 0 | 0.5 | 2.6 |
Commodity Derivatives [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Amount of Loss Recognized in AOCI | 0 | 0 | 0.5 |
Foreign Exchange Contracts [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Amount of Loss Recognized in AOCI | 0 | 0 | |
Cost of Sales [Member] | Commodity Derivatives [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Total Loss (Gain) Recognized in Continuing Operations | 0.2 | 0.5 | 4.6 |
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 Continuing Operations | 0 | 0.5 | 2.6 |
Other Income (Expense) - Net [Member] | Foreign Exchange Contracts [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Total Loss (Gain) Recognized in Continuing Operations | 1.1 | -0.3 | |
Other Income (Expense) - Net [Member] | Foreign Exchange Contracts [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Loss Reclassified from AOCI into Continuing Operations | $0 | $0 |
Contingencies_and_Litigation_D
Contingencies and Litigation (Details) | 12 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2012 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2014 |
USD ($) | USD ($) | USD ($) | BRL | USD ($) | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Credit Concentration Risk [Member] | Credit Concentration Risk [Member] | |
Customer | Customer | Customer | ||||||||
Site | ||||||||||
Concentration Risk [Line Items] | ||||||||||
Number of major customers | 2 | 1 | 1 | |||||||
Concentration risk, percentage (in hundredths) | 63.00% | 56.00% | 59.00% | 47.00% | 46.00% | |||||
Number of top customers | 10 | |||||||||
European value added tax [Abstract] | ||||||||||
Value added tax payable | $10.70 | |||||||||
Reduction to selling general and administrative expense | 2 | 2.9 | 1.6 | |||||||
Environmental Matters [Abstract] | ||||||||||
Number of sites remediation considered for potentially responsible party | 3 | |||||||||
Reserves for environmental matters | 3.8 | 5.1 | ||||||||
Legal Matters [Abstract] | ||||||||||
Brazil legal matter | $3.20 | 10 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | ($103.90) | ($128.40) | ||
Other comprehensive income (loss) before reclassifications | -113.2 | 28.2 | ||
Reclassifications: [Abstract] | ||||
Income taxes | 13.2 | -9.2 | ||
Total other comprehensive income (loss) | -94.7 | 24.5 | ||
Ending balance | -198.6 | -103.9 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassifications: [Abstract] | ||||
Amortization of unrecognized net loss | 5.4 | [1] | 6.2 | [1] |
Amortization of unrecognized prior service credit | -0.1 | [1] | -1.2 | [1] |
Commodity derivatives | 0.5 | [2] | ||
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 27.3 | 17.8 | ||
Other comprehensive income (loss) before reclassifications | -68 | 9.5 | ||
Reclassifications: [Abstract] | ||||
Income taxes | 0 | 0 | ||
Total other comprehensive income (loss) | -68 | 9.5 | ||
Ending balance | -40.7 | 27.3 | ||
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] | ||
Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 0 | -1.1 | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | ||
Reclassifications: [Abstract] | ||||
Income taxes | 0 | 0.6 | ||
Total other comprehensive income (loss) | 0 | 1.1 | ||
Ending balance | 0 | 0 | ||
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 | 0.5 | [2] | ||
Defined Benefit Plans [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | -131.2 | -145.1 | ||
Other comprehensive income (loss) before reclassifications | -45.2 | 18.7 | ||
Reclassifications: [Abstract] | ||||
Income taxes | 13.2 | -9.8 | ||
Total other comprehensive income (loss) | -26.7 | 13.9 | ||
Ending balance | -157.9 | -131.2 | ||
Defined Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassifications: [Abstract] | ||||
Amortization of unrecognized net loss | 5.4 | [1] | 6.2 | [1] |
Amortization of unrecognized prior service credit | -0.1 | [1] | -1.2 | [1] |
Commodity derivatives | $0 | [2] | ||
[1] | Amounts are included in the calculation of net periodic benefit cost for the Company's defined benefit plans, which include pension and other postretirement plans. See Note 17 for additional information about the Company's pension plans. | |||
[2] | Reclassifications for commodity derivatives are included in cost of sales. |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 |
Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | 5 | ||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | $62.70 | $59.40 | $56.70 | $67.70 | $62.30 | $56.80 | $57.20 | $61.90 | $246.50 | $238.20 | $208.60 |
Gross profit (% of sales) (in hundredths) | 16.50% | 16.10% | 15.20% | ||||||||
Operating income (loss) | 52.7 | 37.2 | -0.6 | ||||||||
Total assets | 931.6 | 1,032.30 | 931.6 | 1,032.30 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total capital expenditures | 58.3 | 53.1 | 49.8 | ||||||||
Total depreciation and amortization expense | 51.6 | 58.1 | 55.8 | ||||||||
Total property, plant and equipment | 322.1 | 359.6 | 322.1 | 359.6 | |||||||
Net sales | 1,496.40 | 1,477.60 | 1,376 | ||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 1,496.40 | 1,477.60 | 1,376 | ||||||||
Modules/Assemblies [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 367.5 | 379.9 | 358.5 | ||||||||
Oil Coolers [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 233 | 215.4 | 194.1 | ||||||||
HVAC Equipment [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 199.6 | 159.5 | 151.8 | ||||||||
EGR Coolers [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 183.5 | 172.5 | 136.1 | ||||||||
Charge Air Coolers [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 148.9 | 157 | 161.8 | ||||||||
Condensers [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 140 | 129.2 | 128.8 | ||||||||
Radiators [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 124.8 | 129 | 134.4 | ||||||||
Other [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | 99.1 | 135.1 | 110.5 | ||||||||
Operating Segments [Member] | |||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | 245.2 | 237.4 | 207.4 | ||||||||
Gross profit (% of sales) (in hundredths) | 16.20% | 15.90% | 14.90% | ||||||||
Operating income (loss) | 78.7 | 65.3 | 26.2 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 1,513.10 | 1,493.80 | 1,395.10 | ||||||||
Operating Segments [Member] | North America [Member] | |||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | 97 | 93.5 | 81.4 | ||||||||
Gross profit (% of sales) (in hundredths) | 16.90% | 16.40% | 14.40% | ||||||||
Operating income (loss) | 45.9 | 42.1 | 39.2 | ||||||||
Total assets | 231.8 | 218.1 | 231.8 | 218.1 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total capital expenditures | 25.9 | 18.9 | 19 | ||||||||
Total depreciation and amortization expense | 18.1 | 19.3 | 20.1 | ||||||||
Net sales | 573.5 | 568.7 | 564.5 | ||||||||
Operating Segments [Member] | Europe [Member] | |||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | 68.7 | 70.8 | 61 | ||||||||
Gross profit (% of sales) (in hundredths) | 11.90% | 12.10% | 12.30% | ||||||||
Operating income (loss) | 25.7 | 9.6 | -25.4 | ||||||||
Total assets | 283.1 | 367.9 | 283.1 | 367.9 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total capital expenditures | 21.5 | 22.9 | 16.5 | ||||||||
Total depreciation and amortization expense | 19.8 | 26.6 | 23.4 | ||||||||
Net sales | 578.2 | 584.4 | 498 | ||||||||
Operating Segments [Member] | South America [Member] | |||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | 12.1 | 20.8 | 22.5 | ||||||||
Gross profit (% of sales) (in hundredths) | 12.80% | 16.90% | 16.80% | ||||||||
Operating income (loss) | -12.3 | 7.5 | 11.2 | ||||||||
Total assets | 46.5 | 80.1 | 46.5 | 80.1 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total capital expenditures | 4.3 | 5.7 | 3.4 | ||||||||
Total depreciation and amortization expense | 3.2 | 3.3 | 3.7 | ||||||||
Net sales | 93.9 | 122.7 | 133.8 | ||||||||
Operating Segments [Member] | Asia [Member] | |||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | 11.5 | 8.9 | 1.7 | ||||||||
Gross profit (% of sales) (in hundredths) | 14.20% | 12.50% | 2.80% | ||||||||
Operating income (loss) | 0.3 | -3.3 | -8.8 | ||||||||
Total assets | 92.4 | 92.8 | 92.4 | 92.8 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total capital expenditures | 3.8 | 4.6 | 7.8 | ||||||||
Total depreciation and amortization expense | 7.2 | 6.7 | 6.4 | ||||||||
Net sales | 81.2 | 71.5 | 59.5 | ||||||||
Operating Segments [Member] | Building HVAC [Member] | |||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | 55.9 | 43.4 | 40.8 | ||||||||
Gross profit (% of sales) (in hundredths) | 30.00% | 29.60% | 29.30% | ||||||||
Operating income (loss) | 19.1 | 9.4 | 10 | ||||||||
Total assets | 131.4 | 132.7 | 131.4 | 132.7 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total capital expenditures | 2.8 | 1 | 3.1 | ||||||||
Total depreciation and amortization expense | 3.3 | 2.2 | 2.2 | ||||||||
Net sales | 186.3 | 146.5 | 139.3 | ||||||||
Corporate and Eliminations [Member] | |||||||||||
Net sales, gross profit, operating (loss) income and total assets by segment [Abstract] | |||||||||||
Gross profit | 1.3 | 0.8 | 1.2 | ||||||||
Gross profit (% of sales) (in hundredths) | 0.00% | 0.00% | 0.00% | ||||||||
Operating income (loss) | -26 | -28.1 | -26.8 | ||||||||
Total assets | 146.4 | 140.7 | 146.4 | 140.7 | |||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | -16.7 | -16.2 | -19.1 | ||||||||
Reportable Geographical Components [Member] | United States [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total property, plant and equipment | 105 | 100.7 | 105 | 100.7 | |||||||
Net sales | 669.3 | 645.7 | 637.4 | ||||||||
Reportable Geographical Components [Member] | Germany [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total property, plant and equipment | 66 | 81.8 | 66 | 81.8 | |||||||
Net sales | 193.8 | 229.5 | 214.8 | ||||||||
Reportable Geographical Components [Member] | Hungary [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 161 | 150.3 | 117.6 | ||||||||
Reportable Geographical Components [Member] | Austria [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 118.7 | 109.8 | 97.7 | ||||||||
Reportable Geographical Components [Member] | Other European Countries [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total property, plant and equipment | 79.9 | 100 | 79.9 | 100 | |||||||
Reportable Geographical Components [Member] | Brazil [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Net sales | 93.2 | 122 | 128.8 | ||||||||
Reportable Geographical Components [Member] | China [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total property, plant and equipment | 36.3 | 38.9 | 36.3 | 38.9 | |||||||
Reportable Geographical Components [Member] | Other [Member] | |||||||||||
Segment Reporting Information, Additional Information [Abstract] | |||||||||||
Total property, plant and equipment | 34.9 | 38.2 | 34.9 | 38.2 | |||||||
Net sales | $260.40 | $220.30 | $179.70 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2015 | ||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | BRL | |||||||||
Selected quarterly financial information [Abstract] | ||||||||||||||||||||
Net sales | $363 | $363.60 | $377.30 | $392.50 | $390.60 | $347 | $364.20 | $375.80 | $1,496.40 | $1,477.60 | $1,376 | |||||||||
Gross profit | 62.7 | 59.4 | 56.7 | 67.7 | 62.3 | 56.8 | 57.2 | 61.9 | 246.5 | 238.2 | 208.6 | |||||||||
Earnings (loss) from continuing operations | -3 | [1] | 9.1 | [1] | 2 | [1] | 14.1 | [1] | 119.7 | [1],[2] | -3.4 | [1],[2] | 5 | [1],[2] | 10.6 | [1],[2] | 22.2 | 131.9 | -22.8 | |
Net earnings (loss) attributable to Modine | -3.2 | [1] | 9.6 | [1] | 1.7 | [1] | 13.7 | [1] | 119.4 | [1],[2] | -3.6 | [1],[2] | 4.6 | [1],[2] | 10 | [1],[2] | 21.8 | 130.4 | -24.2 | |
Net earnings (loss) per share attributable to Modine shareholders [Abstract] | ||||||||||||||||||||
Basic (in dollars per share) | ($0.07) | $0.20 | $0.04 | $0.29 | $2.51 | ($0.08) | $0.10 | $0.21 | $0.46 | $2.75 | ($0.52) | |||||||||
Diluted (in dollars per share) | ($0.07) | $0.20 | $0.04 | $0.28 | $2.49 | ($0.08) | $0.10 | $0.21 | $0.45 | $2.72 | ($0.52) | |||||||||
Deferred tax asset, valuation allowance | 119.2 | 119.2 | ||||||||||||||||||
Restructuring expenses | 1 | 1.9 | 1 | 0.8 | 5.6 | 9.4 | 0.6 | 0.5 | 4.7 | 16.1 | 17 | |||||||||
Wind tunnel sale | 3.2 | 3.2 | 0 | 0 | ||||||||||||||||
Goodwill impairment charge | 7.8 | 1.2 | 2 | 7.8 | 3.2 | 25.9 | ||||||||||||||
Brazil legal matter | $3.20 | $3.20 | 10 | |||||||||||||||||
[1] | The quarterly financial data presented above includes restructuring expenses and impairment charges related to restructuring actions in Europe, North America, and South America segments. During fiscal 2015, restructuring expenses totaled $0.8 million, $1.0 million, $1.9 million, and $1.0 million for the quarters ended June 30, 2014, September 30, 2014, December 31, 2014, and March 31, 2015, respectively. During the third quarter of fiscal 2015, the Company sold a wind tunnel within the Europe segment and recognized a gain of $3.2 million. During the fourth quarter of fiscal 2015, the Company recorded a $7.8 million goodwill impairment charge related to its South America segment. Also during the fourth quarter of fiscal 2015, the Company recorded a $3.2 million charge in its South America segment associated with a legal matter in Brazil. During fiscal 2014, restructuring expenses totaled $0.5 million, $0.6 million, $9.4 million, and $5.6 million for the quarters ended June 30, 2013, September 30, 2013, December 31, 2013, and March 31, 2014, respectively. The Company recorded impairment charges of $2.0 million and $1.2 million during the quarters ended December 31, 2013 and March 31, 2014, respectively. See Notes 6, 14, and 19 for additional information. | |||||||||||||||||||
[2] | The quarter ended March 31, 2014 was benefited by the reversal of U.S. income tax valuation allowances totaling $119.2 million. See Note 8 for additional information. |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2013 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | $1.10 | $0.80 | $0.80 | |||
Charged (Benefit) to Costs and Expenses | 0.4 | 0.6 | 0.5 | |||
Charged to Other Accounts | -0.2 | [1] | 0 | [1] | -0.1 | [1] |
Deductions | -0.3 | [2] | -0.3 | [2] | -0.4 | [2] |
Balance at End of Period | 1 | 1.1 | 0.8 | |||
Valuation Allowance for Deferred Tax Assets [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Balance at Beginning of Period | 61.2 | 172.8 | 146.8 | |||
Charged (Benefit) to Costs and Expenses | -6.8 | -113.1 | 7.7 | |||
Charged to Other Accounts | -6.4 | [1] | 1.5 | [1] | 18.3 | [1] |
Deductions | 0 | 0 | 0 | |||
Balance at End of Period | $48 | $61.20 | $172.80 | |||
[1] | Translation and other adjustments | |||||
[2] | Bad debts charged off during the year |