Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jun. 30, 2015 | Jul. 24, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MODINE MANUFACTURING CO | |
Entity Central Index Key | 67,347 | |
Current Fiscal Year End Date | --03-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 48,086,638 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) [Abstract] | ||
Net sales | $ 346.1 | $ 392.5 |
Cost of sales | 289.1 | 324.8 |
Gross profit | 57 | 67.7 |
Selling, general and administrative expenses | 42.8 | 42.8 |
Restructuring expenses | 2.6 | 0.8 |
Operating income | 11.6 | 24.1 |
Interest expense | (2.8) | (3.1) |
Other expense - net | 0 | (0.2) |
Earnings before income taxes | 8.8 | 20.8 |
Provision for income taxes | (3.3) | (6.7) |
Net earnings | 5.5 | 14.1 |
Net earnings attributable to noncontrolling interest | (0.4) | (0.4) |
Net earnings attributable to Modine | $ 5.1 | $ 13.7 |
Net earnings per share attributable to Modine shareholders: | ||
Basic (in dollars per share) | $ 0.11 | $ 0.29 |
Diluted (in dollars per share) | $ 0.11 | $ 0.28 |
Weighted - average shares outstanding: | ||
Basic (in shares) | 47.3 | 47 |
Diluted (in shares) | 47.8 | 47.7 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net earnings | $ 5.5 | $ 14.1 |
Other comprehensive income: | ||
Foreign currency translation | 8.7 | 1.7 |
Defined benefit plans, net of income taxes of $0.6 and $0.5 | 1.2 | 0.9 |
Total other comprehensive income | 9.9 | 2.6 |
Comprehensive income | 15.4 | 16.7 |
Comprehensive income attributable to noncontrolling interest | (0.4) | (0.6) |
Comprehensive income attributable to Modine | $ 15 | $ 16.1 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Other comprehensive income: | ||
Defined benefit plans, tax | $ 0.6 | $ 0.5 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 60.7 | $ 70.5 |
Trade accounts receivable - net | 199.7 | 192.9 |
Inventories | 115.1 | 107.7 |
Deferred income taxes | 11.5 | 13.4 |
Other current assets | 82 | 79.7 |
Total current assets | 469 | 464.2 |
Property, plant and equipment - net | 327.8 | 322.1 |
Intangible assets - net | 9.9 | 9.9 |
Goodwill | 17 | 16.2 |
Deferred income taxes | 102.7 | 102.7 |
Other noncurrent assets | 21.7 | 16.5 |
Total assets | 948.1 | 931.6 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Short-term debt | 21.1 | 18.6 |
Long-term debt - current portion | 0.5 | 0.5 |
Accounts payable | 151.4 | 152 |
Accrued compensation and employee benefits | 52.2 | 56.7 |
Other current liabilities | 88.1 | 83.4 |
Total current liabilities | 313.3 | 311.2 |
Long-term debt | 129.9 | 129.6 |
Deferred income taxes | 3.5 | 3.4 |
Pensions | 109 | 110.4 |
Other noncurrent liabilities | 16.9 | 16.4 |
Total liabilities | $ 572.6 | $ 571 |
Commitments and contingencies (see Note 15) | ||
Shareholders' equity: | ||
Preferred stock, $0.025 par value, authorized 16.0 million shares, issued - none | $ 0 | $ 0 |
Common stock, $0.625 par value, authorized 80.0 million shares, issued 48.9 million and 48.6 million shares | 30.6 | 30.4 |
Additional paid-in capital | 181.6 | 180.6 |
Retained earnings | 364.9 | 359.8 |
Accumulated other comprehensive loss | (188.7) | (198.6) |
Treasury stock, at cost, 0.8 million and 0.7 million shares | (17) | (16.2) |
Total Modine shareholders' equity | 371.4 | 356 |
Noncontrolling interest | 4.1 | 4.6 |
Total equity | 375.5 | 360.6 |
Total liabilities and equity | $ 948.1 | $ 931.6 |
CONSOLIDATED BALANCE SHEETS (U6
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized (in shares) | 16 | 16 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 80 | 80 |
Common stock, shares issued (in shares) | 48.9 | 48.6 |
Treasury stock at cost (in shares) | 0.8 | 0.7 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net earnings | $ 5.5 | $ 14.1 |
Adjustments to reconcile net earnings to net cash (used for) provided by operating activities: | ||
Depreciation and amortization | 12.4 | 13.3 |
Insurance proceeds from Airedale fire | 0.7 | 0 |
Other - net | 3.4 | 4.3 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | (2.8) | 2.2 |
Inventories | (5.7) | (10) |
Accounts payable | (6.4) | (8.7) |
Other assets and liabilities | (7.2) | (12.7) |
Net cash (used for) provided by operating activities | (0.1) | 2.5 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (16) | (12.4) |
Insurance proceeds from Airedale fire | 14.6 | 0 |
Costs to replace building and equipment damaged in Airedale fire | (11) | (1.4) |
Other - net | (0.1) | (0.2) |
Net cash used for investing activities | (12.5) | (14) |
Cash flows from financing activities: | ||
Borrowings of debt | 12.1 | 16.9 |
Repayments of debt | (9.4) | (19.2) |
Dividend paid to noncontrolling interest | (0.9) | 0 |
Other - net | (0.6) | 0.3 |
Net cash provided by (used for) financing activities | 1.2 | (2) |
Effect of exchange rate changes on cash | 1.6 | 0.3 |
Net decrease in cash and cash equivalents | (9.8) | (13.2) |
Cash and cash equivalents - beginning of period | 70.5 | 87.2 |
Cash and cash equivalents - end of period | $ 60.7 | $ 74 |
General
General | 3 Months Ended |
Jun. 30, 2015 | |
General [Abstract] | |
General | Note 1: General The accompanying condensed consolidated financial statements were prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States applied on a basis consistent with those principles used in the preparation of the annual consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) for the fiscal year ended March 31, 2015. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results for the interim periods. Results for the first three months of fiscal 2016 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes in Modine's Annual Report on Form 10-K for the year ended March 31, 2015. New accounting guidance: |
Airedale Facility Fire
Airedale Facility Fire | 3 Months Ended |
Jun. 30, 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. 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 Company suspended operations at the Rawdon site as a result of the fire; however, it transferred 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. As such, the Company records losses and costs in the same statement of operations line as the related insurance recovery. During the first quarter of fiscal 2015, the Company recorded $2.6 million of recoveries from business interruption insurance related to fiscal 2014 lost profits within selling, general and administrative (“SG&A”) expenses. Since the date of the fire, the Company has received cumulative cash proceeds of $78.0 million from its insurance provider for covered losses. The terms of the Rawdon lease agreement obligate the Company to rebuild the damaged facility. Through June 30, 2015, the Company has capitalized reconstruction costs of $34.1 million, and has recorded this asset on the consolidated balance sheet within other current assets. As of June 30, 2015, the Company recorded a liability for the estimated reconstruction costs of $50.4 million within other current liabilities. As of June 30, 2015, the Company recorded a $3.6 million receivable from its insurance provider within other current assets, which represented covered losses to date in excess of cumulative cash proceeds received. As of March 31, 2015, the other current liability to rebuild the facility was $48.0 million and the receivable from the Company’s insurance provider was $18.0 million. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 3: Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Fair value measurements are classified under the following hierarchy: ● Level 1 – Quoted prices for identical instruments in active markets. ● Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. ● Level 3 – Model-derived valuations in which one or more significant inputs are not observable. When available, the Company uses quoted market prices to determine fair value and classifies such measurements as Level 1. In some cases, where market prices are not available, the Company uses observable market-based inputs to calculate fair value, in which case the measurements are classified as Level 2. If quoted or observable market prices are not available, fair value is based upon valuation models that use, where possible, market-based data such as interest rates, yield curves or currency rates. These measurements are classified as Level 3. The carrying values of cash and cash equivalents, short-term investments, trade accounts receivable, accounts payable, and short-term debt 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 $3.1 million and $3.0 million at June 30, 2015 and March 31, 2015, respectively. The fair value of the Company’s long-term debt is disclosed in Note 14. |
Pensions
Pensions | 3 Months Ended |
Jun. 30, 2015 | |
Pensions [Abstract] | |
Pensions | Note 4: Pensions During the three months ended June 30, 2015 and 2014, the Company contributed $1.3 million Three months ended June 30, 2015 2014 Service cost $ 0.1 $ 0.1 Interest cost 3.0 3.3 Expected return on plan assets (4.3 ) (4.2 ) Amortization of unrecognized net loss 1.8 1.4 Net periodic benefit cost $ 0.6 $ 0.6 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Jun. 30, 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. Compensation cost is calculated based on the fair value of the instrument at the time of grant, and is recognized as expense over the vesting period of the stock-based award. The Company recognized stock-based compensation cost of $1.1 million and $1.0 million for the three months ended June 30, 2015 and 2014, respectively. The performance component of awards granted under the Company’s long-term incentive plan during the first quarter of fiscal 2016 is based upon a target three-year average consolidated return on average capital employed and three-year average revenue growth. The fair value of stock-based compensation awards granted during the three months ended June 30, 2015 and 2014 were as follows: Three months ended June 30, 2015 2014 Shares Fair Value Shares Fair Value Stock options 0.2 $ 7.11 0.1 $ 10.21 Restricted stock - retention 0.3 $ 11.39 0.2 $ 14.94 Restricted stock - performance based 0.2 $ 11.39 0.2 $ 14.94 The following assumptions were used in determining fair value for stock options: Three months ended June 30, 2015 2014 Expected life of awards in years 6.3 6.3 Risk-free interest rate 1.9 % 2.1 % Expected volatility of the Company's stock 66.9 % 76.1 % Expected dividend yield on the Company's stock 0.0 % 0.0 % As of June 30, 2015, unrecognized compensation cost related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows: Unrecognized Compensation Cost Weighted-Average Remaining Service Period in Years Stock options $ 2.8 3.2 Restricted stock - retention 6.9 3.0 Restricted stock - performance based 3.8 2.4 Total $ 13.5 2.9 |
Restructuring Activities
Restructuring Activities | 3 Months Ended |
Jun. 30, 2015 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | Note 6: Restructuring Activities During the first quarter of fiscal 2016, the Company announced a plan to close its Washington, Iowa manufacturing facility. The Company intends to transfer the facility’s current production to other existing Americas segment manufacturing facilities. As a result of the planned closure, the Company recorded $1.8 million of restructuring expenses, primarily related to severance costs. Also during the first quarter of fiscal 2016, the Company substantially completed the transfer of production from its McHenry, Illinois manufacturing facility, which it plans to close, to other existing Americas segment manufacturing facilities. These restructuring activities reflect the Company’s focus on operating scale manufacturing facilities to improve overall competitiveness and profitability. During fiscal 2015, the Company initiated a headcount reduction plan for its Brazil manufacturing facility within its Americas segment. The headcount reductions have been in response to the economic slowdown in Brazil and reflect the Company’s objective to maintain profitability in this business despite lower sales volume. 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 Company designed these activities 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 were as follows: Three months ended June 30, 2015 2014 Employee severance and related benefits $ 1.9 $ 0.3 Other restructuring and repositioning expenses 0.7 0.5 Total $ 2.6 $ 0.8 Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs. The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows: Three months ended June 30, 2015 2014 Beginning balance $ 9.9 $ 19.4 Additions 1.9 0.3 Payments (2.4 ) (1.9 ) Effect of exchange rate changes 0.4 (0.1 ) Ending balance $ 9.8 $ 17.7 During the first quarter of fiscal 2016, the Company reclassified $4.6 million of property, plant and equipment related to a manufacturing facility in the Europe segment to assets held for sale. At June 30, 2015 and March 31, 2015, assets held for sale of $8.5 million and $3.2 million, respectively, were included in other noncurrent assets and consisted of facilities that the Company is actively marketing for sale. |
Other Income and Expense
Other Income and Expense | 3 Months Ended |
Jun. 30, 2015 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Note 7: Other Income and Expense Other income and expense consisted of the following: Three months ended June 30, 2015 2014 Equity in earnings of non-consolidated affiliate $ 0.2 $ 0.2 Interest income 0.1 0.1 Foreign currency transactions (0.3 ) (0.5 ) Total other expense - net $ - $ (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 | 3 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8: Income Taxes For the three months ended June 30, 2015 and 2014, the Company’s effective income tax rate was 37.5 percent and 32.2 percent, respectively. The most significant factors impacting changes in the effective tax rate for the three months ended June 30, 2015, as compared with the prior-year period, were increases in the valuation allowance relating to certain foreign jurisdictions for which no income tax benefit is recognized and changes in the mix of foreign and domestic earnings. At June 30, 2015, the Company continued to record a full valuation allowance against its net deferred tax assets in certain foreign jurisdictions ($43.6 million) and a valuation allowance against certain U.S. deferred tax assets ($5.8 million), as it is more likely than not that these assets will not be realized based on historical financial results. The Company will continue to provide a valuation allowance against its net deferred tax assets in each of the applicable jurisdictions until the need for a valuation allowance is eliminated. The need for a valuation allowance is eliminated when the Company determines it is more likely than not the deferred tax assets will be realized. Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate. Under this methodology, the Company applies its estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The tax impacts of certain significant, unusual or infrequently occurring items are recorded in the period in which they occur. The impact of the Company’s operations in certain foreign locations are excluded from the overall effective tax rate methodology and recorded discretely based upon year-to-date results because the Company anticipates net operating losses for the full fiscal year in these jurisdictions. The Company does not anticipate a significant change in unrecognized tax benefits during the next twelve months. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9: Earnings Per Share The components of basic and diluted earnings per share were as follows: Three months ended June 30, 2015 2014 Net earnings attributable to Modine $ 5.1 $ 13.7 Less: Undistributed earnings attributable to unvested shares (0.1 ) (0.2 ) Net earnings available to Modine shareholders $ 5.0 $ 13.5 Weighted-average shares outstanding - basic 47.3 47.0 Effect of dilutive securities 0.5 0.7 Weighted-average shares outstanding - diluted 47.8 47.7 Earnings per share: Net earnings per share - basic $ 0.11 $ 0.29 Net earnings per share - diluted $ 0.11 $ 0.28 For the three months ended June 30, 2015 and 2014, the calculation of diluted earnings per share excluded 0.9 million and 0.6 million stock options, respectively, because they were anti-dilutive. |
Inventories
Inventories | 3 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Note 10: Inventories Inventories consisted of the following: June 30, 2015 March 31, 2015 Raw materials and work in process $ 82.5 $ 80.7 Finished goods 32.6 27.0 Total inventories $ 115.1 $ 107.7 |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 11: Property, Plant and Equipment Property, plant and equipment consisted of the following: June 30, 2015 March 31, 2015 Gross property, plant and equipment $ 1,012.9 $ 994.8 Accumulated depreciation (685.1 ) (672.7 ) Net property, plant and equipment $ 327.8 $ 322.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 12: Goodwill and Intangible Assets Changes in the carrying amount of goodwill were as follows: Asia Building Total Goodwill, March 31, 2015 $ 0.5 $ 15.7 $ 16.2 Effect of exchange rate changes - 0.8 0.8 Goodwill, June 30, 2015 $ 0.5 $ 16.5 $ 17.0 Intangible assets consisted of the following: June 30, 2015 March 31, 2015 Gross Accumulated Net Gross Accumulated Net Trade names $ 9.5 $ (6.2 ) $ 3.3 $ 9.1 $ (5.8 ) $ 3.3 Acquired technology 5.7 (1.0 ) 4.7 5.6 (0.9 ) 4.7 Customer relationships 2.2 (0.3 ) 1.9 2.1 (0.2 ) 1.9 Total intangible assets $ 17.4 $ (7.5 ) $ 9.9 $ 16.8 $ (6.9 ) $ 9.9 Amortization expense for both the three months ended June 30, 2015 and 2014 was $0.4 million. Estimated future amortization expense is as follows: Fiscal Year Estimated Remainder of 2016 $ 1.2 2017 1.7 2018 1.7 2019 1.5 2020 1.4 2021 & Beyond 2.4 |
Product Warranties
Product Warranties | 3 Months Ended |
Jun. 30, 2015 | |
Product Warranties [Abstract] | |
Product Warranties | Note 13: Product Warranties Changes in accrued warranty costs were as follows: Three months ended June 30, 2015 2014 Beginning balance $ 10.4 $ 14.0 Accruals for warranties issued 1.4 1.6 Accruals related to pre-existing warranties 0.8 0.6 Settlements (1.5 ) (2.4 ) Effect of exchange rate changes 0.2 0.1 Ending balance $ 11.3 $ 13.9 |
Indebtedness
Indebtedness | 3 Months Ended |
Jun. 30, 2015 | |
Indebtedness [Abstract] | |
Indebtedness | Note 14: Indebtedness The Company’s long-term debt includes $125.0 million of 6.8 percent Senior Notes. The Company also maintains a $175.0 million domestic revolving credit facility, which expires in August 2018. At June 30, 2015 and March 31, 2015, 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 June 30, 2015 and March 31, 2015 of $21.1 million and $18.6 million, respectively. At June 30, 2015, the Company’s foreign unused lines of credit totaled $35.0 million. In aggregate, the Company had total available lines of credit of $210.0 million at June 30, 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. The Company was in compliance with its debt covenants as of June 30, 2015. The Company estimates the fair value of long-term debt using discounted future cash flows at rates offered to the Company for similar debt instruments of comparable maturities. At June 30, 2015 and March 31, 2015, 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 $135.0 million and $141.0 million, respectively. The fair value of the Senior Notes is categorized as Level 2 within the fair value hierarchy. Refer to Note 3 for the definition of a Level 2 fair value measurement. |
Contingencies and Litigation
Contingencies and Litigation | 3 Months Ended |
Jun. 30, 2015 | |
Contingencies and Litigation [Abstract] | |
Contingencies and Litigation | Note 15: Contingencies and Litigation Environmental: The Company has recorded environmental investigation and remediation accruals for subsurface contamination at its former manufacturing facility in the Netherlands and groundwater contamination at its manufacturing facility in its wholly-owned subsidiary in Brazil (“Modine Brazil”), 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 $3.9 million and $3.8 million at June 30, 2015 and March 31, 2015, 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 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 Other litigation: |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 16: Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows: Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2015 $ (40.7 ) $ (157.9 ) $ (198.6 ) Other comprehensive income before reclassification 8.7 - 8.7 Reclassification for amortization of unrecognized net loss (a) - 1.8 1.8 Income taxes - (0.6 ) (0.6 ) Total other comprehensive income 8.7 1.2 9.9 Balance, June 30, 2015 $ (32.0 ) $ (156.7 ) $ (188.7 ) Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2014 $ 27.3 $ (131.2 ) $ (103.9 ) Other comprehensive income before reclassification 1.5 - 1.5 Reclassification for amortization of unrecognized net loss (a) - 1.4 1.4 Income taxes - (0.5 ) (0.5 ) Total other comprehensive income 1.5 0.9 2.4 Balance, June 30, 2014 $ 28.8 $ (130.3 ) $ (101.5 ) (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 4 for additional information about the Company’s pension plans. |
Segment Information
Segment Information | 3 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Segment Information | Note 17: Segment Information Effective April 1, 2015, the Company combined its North America and South America segments into the Americas segment, with the objective of streamlining operations to gain synergies and improve its cost structure. As a result, the Company recast the prior period segment financial information to conform to the current period presentation. There was no impact to the Company’s consolidated financial statements as a result. The following is a summary of net sales, gross profit, operating income, and total assets by segment: Three months ended June 30, Net sales: 2015 2014 Americas $ 159.1 $ 176.8 Europe 131.2 158.6 Asia 19.3 20.8 Building HVAC 41.3 40.7 Segment total 350.9 396.9 Corporate and eliminations (4.8 ) (4.4 ) Net sales $ 346.1 $ 392.5 Three months ended June 30, 2015 2014 Gross profit: $'s % of sales $'s % of sales Americas $ 26.7 16.8 % $ 31.6 17.9 % Europe 15.1 11.5 % 22.2 14.0 % Asia 3.5 18.1 % 3.6 17.2 % Building HVAC 11.4 27.7 % 9.9 24.3 % Segment total 56.7 16.2 % 67.3 17.0 % Corporate and eliminations 0.3 - 0.4 - Gross profit $ 57.0 16.5 % $ 67.7 17.2 % Three months ended June 30, Operating income: 2015 2014 Americas $ 9.3 $ 15.9 Europe 5.7 10.4 Asia 0.4 0.9 Building HVAC 2.1 3.2 Segment total 17.5 30.4 Corporate and eliminations (5.9 ) (6.3 ) Operating income $ 11.6 $ 24.1 June 30, 2015 March 31, 2015 Total assets: Americas $ 271.6 $ 277.9 Europe 301.9 283.1 Asia 89.9 92.4 Building HVAC 149.2 131.4 Corporate and eliminations 135.5 146.8 Total assets $ 948.1 $ 931.6 |
Pensions (Tables)
Pensions (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Pensions [Abstract] | |
Components of pension cost | Pension cost included the following components: Three months ended June 30, 2015 2014 Service cost $ 0.1 $ 0.1 Interest cost 3.0 3.3 Expected return on plan assets (4.3 ) (4.2 ) Amortization of unrecognized net loss 1.8 1.4 Net periodic benefit cost $ 0.6 $ 0.6 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Stock-Based Compensation [Abstract] | |
Fair market value of stock-based compensation awards | The fair value of stock-based compensation awards granted during the three months ended June 30, 2015 and 2014 were as follows: Three months ended June 30, 2015 2014 Shares Fair Value Shares Fair Value Stock options 0.2 $ 7.11 0.1 $ 10.21 Restricted stock - retention 0.3 $ 11.39 0.2 $ 14.94 Restricted stock - performance based 0.2 $ 11.39 0.2 $ 14.94 |
Assumptions used in determining fair value of options | The following assumptions were used in determining fair value for stock options: Three months ended June 30, 2015 2014 Expected life of awards in years 6.3 6.3 Risk-free interest rate 1.9 % 2.1 % Expected volatility of the Company's stock 66.9 % 76.1 % Expected dividend yield on the Company's stock 0.0 % 0.0 % |
Unrecognized compensation cost related to non-vested stock-based compensation awards | As of June 30, 2015, unrecognized compensation cost related to non-vested stock-based compensation awards, which will be amortized over the remaining service periods, was as follows: Unrecognized Compensation Cost Weighted-Average Remaining Service Period in Years Stock options $ 2.8 3.2 Restricted stock - retention 6.9 3.0 Restricted stock - performance based 3.8 2.4 Total $ 13.5 2.9 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Restructuring Activities [Abstract] | |
Restructuring costs | Restructuring and repositioning expenses were as follows: Three months ended June 30, 2015 2014 Employee severance and related benefits $ 1.9 $ 0.3 Other restructuring and repositioning expenses 0.7 0.5 Total $ 2.6 $ 0.8 |
Changes in accrued severance | The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows: Three months ended June 30, 2015 2014 Beginning balance $ 9.9 $ 19.4 Additions 1.9 0.3 Payments (2.4 ) (1.9 ) Effect of exchange rate changes 0.4 (0.1 ) Ending balance $ 9.8 $ 17.7 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Other Income and Expense [Abstract] | |
Other income and expense | Other income and expense consisted of the following: Three months ended June 30, 2015 2014 Equity in earnings of non-consolidated affiliate $ 0.2 $ 0.2 Interest income 0.1 0.1 Foreign currency transactions (0.3 ) (0.5 ) Total other expense - net $ - $ (0.2 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per share | The components of basic and diluted earnings per share were as follows: Three months ended June 30, 2015 2014 Net earnings attributable to Modine $ 5.1 $ 13.7 Less: Undistributed earnings attributable to unvested shares (0.1 ) (0.2 ) Net earnings available to Modine shareholders $ 5.0 $ 13.5 Weighted-average shares outstanding - basic 47.3 47.0 Effect of dilutive securities 0.5 0.7 Weighted-average shares outstanding - diluted 47.8 47.7 Earnings per share: Net earnings per share - basic $ 0.11 $ 0.29 Net earnings per share - diluted $ 0.11 $ 0.28 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Inventories [Abstract] | |
Inventories | Inventories consisted of the following: June 30, 2015 March 31, 2015 Raw materials and work in process $ 82.5 $ 80.7 Finished goods 32.6 27.0 Total inventories $ 115.1 $ 107.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment consisted of the following: June 30, 2015 March 31, 2015 Gross property, plant and equipment $ 1,012.9 $ 994.8 Accumulated depreciation (685.1 ) (672.7 ) Net property, plant and equipment $ 327.8 $ 322.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets [Abstract] | |
Changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill were as follows: Asia Building Total Goodwill, March 31, 2015 $ 0.5 $ 15.7 $ 16.2 Effect of exchange rate changes - 0.8 0.8 Goodwill, June 30, 2015 $ 0.5 $ 16.5 $ 17.0 |
Schedule of intangible assets | Intangible assets consisted of the following: June 30, 2015 March 31, 2015 Gross Accumulated Net Gross Accumulated Net Trade names $ 9.5 $ (6.2 ) $ 3.3 $ 9.1 $ (5.8 ) $ 3.3 Acquired technology 5.7 (1.0 ) 4.7 5.6 (0.9 ) 4.7 Customer relationships 2.2 (0.3 ) 1.9 2.1 (0.2 ) 1.9 Total intangible assets $ 17.4 $ (7.5 ) $ 9.9 $ 16.8 $ (6.9 ) $ 9.9 |
Estimated future amortization expense | Estimated future amortization expense is as follows: Fiscal Year Estimated Remainder of 2016 $ 1.2 2017 1.7 2018 1.7 2019 1.5 2020 1.4 2021 & Beyond 2.4 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Product Warranties [Abstract] | |
Changes in accrued warranty costs | Changes in accrued warranty costs were as follows: Three months ended June 30, 2015 2014 Beginning balance $ 10.4 $ 14.0 Accruals for warranties issued 1.4 1.6 Accruals related to pre-existing warranties 0.8 0.6 Settlements (1.5 ) (2.4 ) Effect of exchange rate changes 0.2 0.1 Ending balance $ 11.3 $ 13.9 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Changes in accumulated other comprehensive loss | Changes in accumulated other comprehensive loss were as follows: Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2015 $ (40.7 ) $ (157.9 ) $ (198.6 ) Other comprehensive income before reclassification 8.7 - 8.7 Reclassification for amortization of unrecognized net loss (a) - 1.8 1.8 Income taxes - (0.6 ) (0.6 ) Total other comprehensive income 8.7 1.2 9.9 Balance, June 30, 2015 $ (32.0 ) $ (156.7 ) $ (188.7 ) Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2014 $ 27.3 $ (131.2 ) $ (103.9 ) Other comprehensive income before reclassification 1.5 - 1.5 Reclassification for amortization of unrecognized net loss (a) - 1.4 1.4 Income taxes - (0.5 ) (0.5 ) Total other comprehensive income 1.5 0.9 2.4 Balance, June 30, 2014 $ 28.8 $ (130.3 ) $ (101.5 ) (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 4 for additional information about the Company’s pension plans. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Jun. 30, 2015 | |
Segment Information [Abstract] | |
Net sales, gross profit, operating income and total assets by segment: | The following is a summary of net sales, gross profit, operating income, and total assets by segment: Three months ended June 30, Net sales: 2015 2014 Americas $ 159.1 $ 176.8 Europe 131.2 158.6 Asia 19.3 20.8 Building HVAC 41.3 40.7 Segment total 350.9 396.9 Corporate and eliminations (4.8 ) (4.4 ) Net sales $ 346.1 $ 392.5 Three months ended June 30, 2015 2014 Gross profit: $'s % of sales $'s % of sales Americas $ 26.7 16.8 % $ 31.6 17.9 % Europe 15.1 11.5 % 22.2 14.0 % Asia 3.5 18.1 % 3.6 17.2 % Building HVAC 11.4 27.7 % 9.9 24.3 % Segment total 56.7 16.2 % 67.3 17.0 % Corporate and eliminations 0.3 - 0.4 - Gross profit $ 57.0 16.5 % $ 67.7 17.2 % Three months ended June 30, Operating income: 2015 2014 Americas $ 9.3 $ 15.9 Europe 5.7 10.4 Asia 0.4 0.9 Building HVAC 2.1 3.2 Segment total 17.5 30.4 Corporate and eliminations (5.9 ) (6.3 ) Operating income $ 11.6 $ 24.1 June 30, 2015 March 31, 2015 Total assets: Americas $ 271.6 $ 277.9 Europe 301.9 283.1 Asia 89.9 92.4 Building HVAC 149.2 131.4 Corporate and eliminations 135.5 146.8 Total assets $ 948.1 $ 931.6 |
Airedale Facility Fire (Details
Airedale Facility Fire (Details) - Loss by Fire [Member] - USD ($) $ in Millions | 3 Months Ended | 22 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2015 | Mar. 31, 2015 | |
Unusual of Infrequent Item [Line Items] | |||
Recoveries from insurance included in selling, general and administrative expenses | $ 2.6 | ||
Cash proceeds received from insurance provider | $ 78 | ||
Company paid reconstruction costs | 34.1 | ||
Current liability to rebuild damaged facility | 50.4 | $ 48 | |
Insurance receivable | $ 3.6 | $ 18 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Fair Value Measurements [Abstract] | ||
Trading securities | $ 3.1 | $ 3 |
Deferred compensation obligations | $ 3.1 | $ 3 |
Pensions (Details)
Pensions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 1.3 | $ 1.8 |
Pension [Member] | ||
Pension plans [Abstract] | ||
Service cost | 0.1 | 0.1 |
Interest cost | 3 | 3.3 |
Expected return on plan assets | (4.3) | (4.2) |
Amortization of unrecognized net loss | 1.8 | 1.4 |
Net periodic benefit cost | $ 0.6 | $ 0.6 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Stock-Based Compensation [Abstract] | ||
Stock-based compensation cost | $ 1.1 | $ 1 |
Assumptions used in determining fair value of options [Abstract] | ||
Expected life of awards in years | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate (in hundredths) | 1.90% | 2.10% |
Expected volatility of the Company's stock (in hundredths) | 66.90% | 76.10% |
Expected dividend yield on the Company's stock (in hundredths) | 0.00% | 0.00% |
Unrecognized compensation cost and recognition period [Abstract] | ||
Unrecognized Compensation Cost | $ 13.5 | |
Weighted-Average Remaining Service Period in Years | 2 years 10 months 24 days | |
Stock Options [Member] | ||
Type and fair value of stock-based compensation awards granted [Abstract] | ||
Options granted (in shares) | 0.2 | 0.1 |
Options, grant date fair value (in dollars per share) | $ 7.11 | $ 10.21 |
Unrecognized compensation cost and recognition period [Abstract] | ||
Unrecognized Compensation Cost | $ 2.8 | |
Weighted-Average Remaining Service Period in Years | 3 years 2 months 12 days | |
Restricted Stock - Retention [Member] | ||
Type and fair value of stock-based compensation awards granted [Abstract] | ||
Stock granted (in shares) | 0.3 | 0.2 |
Fair value of stock granted (in dollars per share) | $ 11.39 | $ 14.94 |
Unrecognized compensation cost and recognition period [Abstract] | ||
Unrecognized Compensation Cost | $ 6.9 | |
Weighted-Average Remaining Service Period in Years | 3 years | |
Restricted Stock - Performance Based [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award performance period | 3 years | |
Type and fair value of stock-based compensation awards granted [Abstract] | ||
Stock granted (in shares) | 0.2 | 0.2 |
Fair value of stock granted (in dollars per share) | $ 11.39 | $ 14.94 |
Unrecognized compensation cost and recognition period [Abstract] | ||
Unrecognized Compensation Cost | $ 3.8 | |
Weighted-Average Remaining Service Period in Years | 2 years 4 months 24 days |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 2.6 | $ 0.8 | |
Restructuring and repositioning expenses [Abstract] | |||
Employee severance and related benefits | 1.9 | 0.3 | |
Other restructuring and repositioning expenses | 0.7 | 0.5 | |
Total | 2.6 | 0.8 | |
Changes in accrued severance [Roll Forward] | |||
Beginning Balance | 9.9 | 19.4 | |
Additions | 1.9 | 0.3 | |
Payments | (2.4) | (1.9) | |
Effect of exchange rate changes | 0.4 | (0.1) | |
Ending Balance | 9.8 | $ 17.7 | |
Assets Held-for-Sale [Abstract] | |||
Assets held for sale | 8.5 | $ 3.2 | |
Europe Segment [Member] | |||
Assets Held-for-Sale [Abstract] | |||
Amount reclassified from property, plant and equipment to assets held for sale | 4.6 | ||
Washington Plant Closure [Member] | Americas [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 1.8 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income and Expense [Abstract] | ||
Equity in earnings of non-consolidated affiliate | $ 0.2 | $ 0.2 |
Interest income | 0.1 | 0.1 |
Foreign currency transactions | (0.3) | (0.5) |
Total other expense - net | $ 0 | $ (0.2) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Taxes [Abstract] | ||
Effective income tax rate (in hundredths) | 37.50% | 32.20% |
Domestic Tax Jurisdiction [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred tax asset, valuation allowance | $ 5.8 | |
Foreign Tax Jurisdiction [Member] | ||
Valuation Allowance [Line Items] | ||
Deferred tax asset, valuation allowance | $ 43.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Components of basic and diluted earnings per share [Abstract] | ||
Net earnings attributable to Modine | $ 5.1 | $ 13.7 |
Less: Undistributed earnings attributable to unvested shares | (0.1) | (0.2) |
Net earnings available to Modine shareholders | $ 5 | $ 13.5 |
Weighted average shares outstanding - basic (in shares) | 47.3 | 47 |
Effect of dilutive securities (in shares) | 0.5 | 0.7 |
Weighted average shares outstanding - diluted (in shares) | 47.8 | 47.7 |
Earnings per share [Abstract] | ||
Net earnings per share - basic (in dollars per share) | $ 0.11 | $ 0.29 |
Net earnings per share - diluted (in dollars per share) | $ 0.11 | $ 0.28 |
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) | 0.9 | 0.6 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Inventories [Abstract] | ||
Raw materials and work in process | $ 82.5 | $ 80.7 |
Finished goods | 32.6 | 27 |
Total inventories | $ 115.1 | $ 107.7 |
Property, Plant and Equipment45
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 |
Property, plant and equipment [Abstract] | ||
Gross property, plant and equipment | $ 1,012.9 | $ 994.8 |
Accumulated depreciation | (685.1) | (672.7) |
Net property, plant and equipment | $ 327.8 | $ 322.1 |
Goodwill and Intangible Asset46
Goodwill and Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 16.2 | ||
Effect of exchange rate changes | 0.8 | ||
Ending balance | 17 | ||
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | 17.4 | $ 16.8 | |
Accumulated Amortization | (7.5) | (6.9) | |
Net Intangible Assets | 9.9 | 9.9 | |
Amortization expense | 0.4 | $ 0.4 | |
Estimated future amortization expense [Abstract] | |||
Remainder of 2016 | 1.2 | ||
2,017 | 1.7 | ||
2,018 | 1.7 | ||
2,019 | 1.5 | ||
2,020 | 1.4 | ||
2021 & Beyond | 2.4 | ||
Asia [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 0.5 | ||
Effect of exchange rate changes | 0 | ||
Ending balance | 0.5 | ||
Building HVAC [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 15.7 | ||
Effect of exchange rate changes | 0.8 | ||
Ending balance | 16.5 | ||
Trade Names [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | 9.5 | 9.1 | |
Accumulated Amortization | (6.2) | (5.8) | |
Net Intangible Assets | 3.3 | 3.3 | |
Acquired Technology [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | 5.7 | 5.6 | |
Accumulated Amortization | (1) | (0.9) | |
Net Intangible Assets | 4.7 | 4.7 | |
Customer Relationships [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross Carrying Value | 2.2 | 2.1 | |
Accumulated Amortization | (0.3) | (0.2) | |
Net Intangible Assets | $ 1.9 | $ 1.9 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in accrued warranty costs [Roll Forward] | ||
Beginning balance | $ 10.4 | $ 14 |
Accruals for warranties issued | 1.4 | 1.6 |
Accruals related to pre-existing warranties | 0.8 | 0.6 |
Settlements | (1.5) | (2.4) |
Effect of exchange rate changes | 0.2 | 0.1 |
Ending balance | $ 11.3 | $ 13.9 |
Indebtedness (Details)
Indebtedness (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2015 | Mar. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Available for future borrowings | $ 210 | |
Foreign Credit agreements [Member] | ||
Debt Instrument [Line Items] | ||
Short-term debt | 21.1 | $ 18.6 |
Line of Credit Facility [Line Items] | ||
Available for future borrowings | 35 | |
Domestic Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, fair value | 135 | 141 |
Line of Credit Facility [Line Items] | ||
Amount outstanding | 0 | $ 0 |
Maximum borrowing capacity | $ 175 | |
Expiration date | Aug. 31, 2018 | |
6.8% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 125 | |
Stated interest rate (in hundredths) | 6.80% |
Contingencies and Litigation (D
Contingencies and Litigation (Details) BRL in Millions, $ in Millions | 3 Months Ended | |||
Jun. 30, 2015USD ($)Site | Jun. 30, 2015BRL | Mar. 31, 2015USD ($) | Mar. 31, 2015BRL | |
Environmental Matters [Abstract] | ||||
Number of sites remediation considered for potentially responsible party | 3 | |||
Reserves for these environmental matters | $ | $ 3.9 | $ 3.8 | ||
Legal Matters [Abstract] | ||||
Brazil legal matter | $ 3.2 | BRL 10 | $ 3.2 | BRL 10 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (198.6) | $ (103.9) | |
Other comprehensive income before reclassifications | 8.7 | 1.5 | |
Income taxes | (0.6) | (0.5) | |
Total other comprehensive (loss) income | 9.9 | 2.4 | |
Ending balance | (188.7) | (101.5) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassifications for amortization of unrecognized net loss | [1] | 1.8 | 1.4 |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (40.7) | 27.3 | |
Other comprehensive income before reclassifications | 8.7 | 1.5 | |
Income taxes | 0 | 0 | |
Total other comprehensive (loss) income | 8.7 | 1.5 | |
Ending balance | (32) | 28.8 | |
Foreign Currency Translation [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassifications for amortization of unrecognized net loss | [1] | 0 | 0 |
Defined Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (157.9) | (131.2) | |
Other comprehensive income before reclassifications | 0 | 0 | |
Income taxes | (0.6) | (0.5) | |
Total other comprehensive (loss) income | 1.2 | 0.9 | |
Ending balance | (156.7) | (130.3) | |
Defined Benefit Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassifications for amortization of unrecognized net loss | [1] | $ 1.8 | $ 1.4 |
[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 4 for additional information about the Company's pension plans. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2015 | |
Segment Reporting Information [Abstract] | |||
Net sales | $ 346.1 | $ 392.5 | |
Gross profit | $ 57 | $ 67.7 | |
Gross profit as % of sales (in hundredths) | 16.50% | 17.20% | |
Operating income | $ 11.6 | $ 24.1 | |
Total assets | 948.1 | $ 931.6 | |
Operating Segments [Member] | |||
Segment Reporting Information [Abstract] | |||
Net sales | 350.9 | 396.9 | |
Gross profit | $ 56.7 | $ 67.3 | |
Gross profit as % of sales (in hundredths) | 16.20% | 17.00% | |
Operating income | $ 17.5 | $ 30.4 | |
Operating Segments [Member] | Americas [Member] | |||
Segment Reporting Information [Abstract] | |||
Net sales | 159.1 | 176.8 | |
Gross profit | $ 26.7 | $ 31.6 | |
Gross profit as % of sales (in hundredths) | 16.80% | 17.90% | |
Operating income | $ 9.3 | $ 15.9 | |
Total assets | 271.6 | 277.9 | |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Abstract] | |||
Net sales | 131.2 | 158.6 | |
Gross profit | $ 15.1 | $ 22.2 | |
Gross profit as % of sales (in hundredths) | 11.50% | 14.00% | |
Operating income | $ 5.7 | $ 10.4 | |
Total assets | 301.9 | 283.1 | |
Operating Segments [Member] | Asia [Member] | |||
Segment Reporting Information [Abstract] | |||
Net sales | 19.3 | 20.8 | |
Gross profit | $ 3.5 | $ 3.6 | |
Gross profit as % of sales (in hundredths) | 18.10% | 17.20% | |
Operating income | $ 0.4 | $ 0.9 | |
Total assets | 89.9 | 92.4 | |
Operating Segments [Member] | Building HVAC [Member] | |||
Segment Reporting Information [Abstract] | |||
Net sales | 41.3 | 40.7 | |
Gross profit | $ 11.4 | $ 9.9 | |
Gross profit as % of sales (in hundredths) | 27.70% | 24.30% | |
Operating income | $ 2.1 | $ 3.2 | |
Total assets | 149.2 | 131.4 | |
Corporate and Eliminations [Member] | |||
Segment Reporting Information [Abstract] | |||
Net sales | (4.8) | (4.4) | |
Gross profit | $ 0.3 | $ 0.4 | |
Gross profit as % of sales (in hundredths) | 0.00% | 0.00% | |
Operating income | $ (5.9) | $ (6.3) | |
Total assets | $ 135.5 | $ 146.8 |