Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | May 22, 2017 | Sep. 30, 2016 | |
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 Public Float | $ 542 | ||
Entity Common Stock, Shares Outstanding | 50,079,761 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Mar. 31, 2017 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | |||||
Net sales | $ 1,503 | $ 1,352.5 | $ 1,496.4 | ||
Cost of sales | 1,249.7 | 1,129 | 1,249.9 | ||
Gross profit | 253.3 | 223.5 | 246.5 | ||
Selling, general and administrative expenses | 205 | 204.5 | 184.5 | ||
Restructuring expenses | 10.9 | 16.6 | 4.7 | ||
Gain on sale of facilities | (2) | 0 | (3.2) | ||
Impairment charges | 0 | 9.9 | 7.8 | ||
Operating income (loss) | 39.4 | (7.5) | 52.7 | ||
Interest expense | (17.2) | (11.1) | (11.7) | ||
Other (expense) income - net | (1.4) | 8.7 | 0.2 | ||
Earnings (loss) from continuing operations before income taxes | 20.8 | (9.9) | 41.2 | ||
(Provision) benefit for income taxes | (5.9) | 8.9 | (19) | ||
Earnings (loss) from continuing operations | 14.9 | [1] | (1) | [2] | 22.2 |
Earnings from discontinued operations, net of income taxes | 0 | 0 | 0.6 | ||
Net earnings (loss) | 14.9 | (1) | 22.8 | ||
Net earnings attributable to noncontrolling interest | (0.7) | (0.6) | (1) | ||
Net earnings (loss) attributable to Modine | $ 14.2 | [1] | $ (1.6) | [2] | $ 21.8 |
Earnings (loss) per share from continuing operations attributable to Modine shareholders: | |||||
Basic (in dollars per share) | $ 0.29 | $ (0.03) | $ 0.45 | ||
Diluted (in dollars per share) | 0.29 | (0.03) | 0.44 | ||
Net earnings (loss) per share attributable to Modine shareholders: | |||||
Basic (in dollars per share) | 0.29 | (0.03) | 0.46 | ||
Diluted (in dollars per share) | $ 0.29 | $ (0.03) | $ 0.45 | ||
Weighted-average shares outstanding: | |||||
Basic (in shares) | 47.8 | 47.3 | 47.2 | ||
Diluted (in shares) | 48.3 | 47.3 | 47.8 | ||
[1] | During fiscal 2017, restructuring expenses totaled $2.3 million, $2.1 million, $1.6 million, and $4.9 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 5). During fiscal 2017, the Company sold two previously-closed manufacturing facilities in its Americas segment and a facility in its Europe segment and recognized net gains totaling $1.2 million and $0.8 million in the quarters ended September 30, 2016 and March 31, 2017, respectively. During fiscal 2017, acquisition- and integration-related costs totaled $1.4 million, $3.0 million, $7.2 million, and $3.2 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 2). During the fourth quarter of fiscal 2017, the Company recorded a deferred tax valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded income tax expense of $2.0 million (see Note 7). | ||||
[2] | During fiscal 2016, restructuring expenses totaled $2.6 million, $1.0 million, $1.6 million, and $11.4 million for the quarters ended June 30, 2015, September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 5). During the fourth quarter of fiscal 2016, the Company recorded a $9.9 million asset impairment charge related to a manufacturing facility in Germany (see Note 5). During fiscal 2016, non-cash pension settlement losses totaled $39.2 million, $1.1 million, and $1.8 million for the quarters ended September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 16). During the fourth quarter of fiscal 2016, the Company recorded a $9.5 million gain related to an insurance settlement for equipment losses resulting from the Airedale fire. Also during the fourth quarter of fiscal 2016, the Company reversed a deferred tax asset valuation allowance, and, as a result, recorded an income tax benefit related to a foreign tax jurisdiction of $3.0 million (see Note 7). |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | |||
Net earnings (loss) | $ 14.9 | $ (1) | $ 22.8 |
Other comprehensive income (loss): | |||
Foreign currency translation | (10.8) | 4.6 | (68.2) |
Defined benefit plans, net of income taxes of $1.7, $11.8 and ($13.2) million | 3.2 | 19.7 | (26.7) |
Total other comprehensive (loss) income | (7.6) | 24.3 | (94.9) |
Comprehensive income (loss) | 7.3 | 23.3 | (72.1) |
Comprehensive income attributable to noncontrolling interest | (0.7) | (0.5) | (0.8) |
Comprehensive income (loss) attributable to Modine | $ 6.6 | $ 22.8 | $ (72.9) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Other comprehensive income (loss): | |||
Defined benefit plans, tax | $ 1.7 | $ 11.8 | $ (13.2) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 34.2 | $ 68.9 |
Trade accounts receivable - net | 295.2 | 189.1 |
Inventories | 168.5 | 111 |
Other current assets | 55.4 | 43.5 |
Total current assets | 553.3 | 412.5 |
Property, plant and equipment - net | 459 | 338.6 |
Intangible assets - net | 134.1 | 8.2 |
Goodwill | 165.1 | 15.8 |
Deferred income taxes | 108.4 | 123.1 |
Other noncurrent assets | 29.6 | 22.7 |
Total assets | 1,449.5 | 920.9 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Short-term debt | 73.4 | 28.6 |
Long-term debt - current portion | 31.8 | 8.5 |
Accounts payable | 230.3 | 142.4 |
Accrued compensation and employee benefits | 74.8 | 58.6 |
Other current liabilities | 45.1 | 35.5 |
Total current liabilities | 455.4 | 273.6 |
Long-term debt | 405.7 | 125.5 |
Deferred income taxes | 9.7 | 4.2 |
Pensions | 119.4 | 118.6 |
Other noncurrent liabilities | 38.1 | 16.3 |
Total liabilities | 1,028.3 | 538.2 |
Commitments and contingencies (see Note 18) | ||
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 51.8 million and 49.0 million shares | 32.4 | 30.6 |
Additional paid-in capital | 216.4 | 185.6 |
Retained earnings | 372.4 | 358.2 |
Accumulated other comprehensive loss | (181.8) | (174.2) |
Treasury stock, at cost, 1.7 million and 1.6 million shares | (25.4) | (24) |
Total Modine shareholders' equity | 414 | 376.2 |
Noncontrolling interest | 7.2 | 6.5 |
Total equity | 421.2 | 382.7 |
Total liabilities and equity | $ 1,449.5 | $ 920.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
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 shares) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 80 | 80 |
Common stock, shares issued (in shares) | 51.8 | 49 |
Treasury stock at cost (in shares) | 1.7 | 1.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | |||
Net earnings (loss) | $ 14.9 | $ (1) | $ 22.8 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 58.3 | 50.2 | 51.6 |
Gain on sale of facilities | (2) | 0 | (3.2) |
Impairment charges | 0 | 9.9 | 7.8 |
Insurance proceeds from Airedale fire | 0 | 5.9 | 12.9 |
Pension and postretirement expense | 3.4 | 45.1 | 2.3 |
Deferred income taxes | (4.6) | (18.8) | 5.9 |
Stock-based compensation expense | 7.4 | 4.9 | 4 |
Other - net | 0.5 | 0.1 | 0.4 |
Changes in operating assets and liabilities, excluding acquisitions: | |||
Trade accounts receivable | (25.7) | 8 | (0.1) |
Inventories | (3.3) | (2.7) | (4.2) |
Accounts payable | 19.9 | (9.9) | (2.4) |
Accrued compensation and employee benefits | (6.5) | 0.8 | (5.3) |
Other assets | (2.5) | (14.5) | (24.5) |
Other liabilities | (18.2) | (5.6) | (4.5) |
Net cash provided by operating activities | 41.6 | 72.4 | 63.5 |
Cash flows from investing activities: | |||
Acquisitions - net of cash acquired | (364.2) | (1.4) | 0 |
Expenditures for property, plant and equipment | (64.4) | (62.8) | (58.3) |
Insurance proceeds from Airedale fire | 3 | 27.4 | 12.2 |
Costs to replace building and equipment damaged in Airedale fire | (1) | (41.7) | (16.7) |
Proceeds from dispositions of assets | 5.7 | 0.4 | 7.6 |
Purchases of short-term investments | (3.5) | (2.7) | (5.2) |
Proceeds from maturities of short-term investments | 2.2 | 2.1 | 2.4 |
Other - net | 0 | 0.9 | 0.8 |
Net cash used for investing activities | (422.2) | (77.8) | (57.2) |
Cash flows from financing activities: | |||
Borrowings of debt | 559.1 | 38 | 36.4 |
Repayments of debt | (202.4) | (27.1) | (50.9) |
Financing fees paid | (8.7) | 0 | (0.1) |
Purchases of treasury stock under share repurchase program | 0 | (6.9) | 0 |
Dividend paid to noncontrolling interest | 0 | (0.9) | 0 |
Other - net | (0.4) | (0.4) | 0 |
Net cash provided by (used for) financing activities | 347.6 | 2.7 | (14.6) |
Effect of exchange rate changes on cash | (1.7) | 1.1 | (8.4) |
Net decrease in cash and cash equivalents | (34.7) | (1.6) | (16.7) |
Cash and cash equivalents - beginning of year | 68.9 | 70.5 | 87.2 |
Cash and cash equivalents - end of year | $ 34.2 | $ 68.9 | $ 70.5 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Common stock [Member] | Additional Paid-in Capital [Member] | Retained earnings [Member] | Accumulated Other Comprehensive Income [Member] | Treasury stock, at cost [Member] | Non-controlling interest [Member] | Total | |
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 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) attributable to Modine | $ 0 | 0 | 21.8 | 0 | 0 | 0 | 21.8 | |
Other comprehensive income (loss) | 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 | $ 30.4 | 180.6 | 359.8 | (198.6) | (16.2) | 4.6 | 360.6 | |
Balance (in shares) at Mar. 31, 2015 | 48.6 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) attributable to Modine | $ 0 | 0 | (1.6) | 0 | 0 | 0 | (1.6) | [1] |
Other comprehensive income (loss) | 0 | 0 | 0 | 24.4 | 0 | (0.1) | 24.3 | |
Stock options and awards including related tax benefits | $ 0.2 | 0.1 | 0 | 0 | 0 | 0 | 0.3 | |
Stock options and awards including related tax benefits (in shares) | 0.4 | |||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (7.8) | 0 | (7.8) | |
Stock-based compensation expense | 0 | 4.9 | 0 | 0 | 0 | 0 | 4.9 | |
Contribution by noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 2.3 | 2.3 | |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | (0.9) | (0.9) | |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0.6 | 0.6 | |
Balance at Mar. 31, 2016 | $ 30.6 | 185.6 | 358.2 | (174.2) | (24) | 6.5 | $ 382.7 | |
Balance (in shares) at Mar. 31, 2016 | 49 | 49 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net earnings (loss) attributable to Modine | $ 0 | 0 | 14.2 | 0 | 0 | 0 | $ 14.2 | [2] |
Other comprehensive income (loss) | 0 | 0 | 0 | (7.6) | 0 | 0 | (7.6) | |
Shares issued for acquisition of Luvata HTS | $ 1.4 | 22.9 | 0 | 0 | 0 | 0 | 24.3 | |
Shares issued for acquisition of Luvata HTS (in shares) | 2.2 | |||||||
Stock options and awards including related tax benefits | $ 0.4 | 0.5 | 0 | 0 | 0 | 0 | 0.9 | |
Stock options and awards including related tax benefits (in shares) | 0.6 | |||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (1.4) | 0 | (1.4) | |
Stock-based compensation expense | 0 | 7.4 | 0 | 0 | 0 | 0 | 7.4 | |
Net earnings attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | 0.7 | 0.7 | |
Balance at Mar. 31, 2017 | $ 32.4 | $ 216.4 | $ 372.4 | $ (181.8) | $ (25.4) | $ 7.2 | $ 421.2 | |
Balance (in shares) at Mar. 31, 2017 | 51.8 | 51.8 | ||||||
[1] | During fiscal 2016, restructuring expenses totaled $2.6 million, $1.0 million, $1.6 million, and $11.4 million for the quarters ended June 30, 2015, September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 5). During the fourth quarter of fiscal 2016, the Company recorded a $9.9 million asset impairment charge related to a manufacturing facility in Germany (see Note 5). During fiscal 2016, non-cash pension settlement losses totaled $39.2 million, $1.1 million, and $1.8 million for the quarters ended September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 16). During the fourth quarter of fiscal 2016, the Company recorded a $9.5 million gain related to an insurance settlement for equipment losses resulting from the Airedale fire. Also during the fourth quarter of fiscal 2016, the Company reversed a deferred tax asset valuation allowance, and, as a result, recorded an income tax benefit related to a foreign tax jurisdiction of $3.0 million (see Note 7). | |||||||
[2] | During fiscal 2017, restructuring expenses totaled $2.3 million, $2.1 million, $1.6 million, and $4.9 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 5). During fiscal 2017, the Company sold two previously-closed manufacturing facilities in its Americas segment and a facility in its Europe segment and recognized net gains totaling $1.2 million and $0.8 million in the quarters ended September 30, 2016 and March 31, 2017, respectively. During fiscal 2017, acquisition- and integration-related costs totaled $1.4 million, $3.0 million, $7.2 million, and $3.2 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 2). During the fourth quarter of fiscal 2017, the Company recorded a deferred tax valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded income tax expense of $2.0 million (see Note 7). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Nature of operations: Acquisition of Luvata HTS: Airedale facility fire: Basis of presentation: Consolidation principles: 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 earnings. The Company includes Modine’s share of the affiliate’s net earnings in other income and expense. See Note 11 for additional information. Discontinued operations: Assets held for sale: Revenue recognition: Tooling costs: Warranty: Shipping and handling costs: Research and development: Translation of foreign currencies: Derivative instruments: Income taxes: Earnings per share: Cash and cash equivalents: Short-term investments: Deferred compensation trusts: Trade accounts receivable: Inventories: Property, plant and equipment Goodwill: Impairment of long-lived assets: Environmental liabilities: Self-insurance reserves: Stock-based compensation: New Accounting Guidance: Pension costs In March 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the income statement presentation of net periodic pension costs and net periodic postretirement benefit costs. This guidance requires companies to continue to present the service cost component of net benefit cost within the same financial statement line item as other employee compensation costs; however, other components of net benefit costs are required to be presented outside of results from operations. This will not impact consolidated net earnings. Early adoption is permitted, and the Company plans to adopt this guidance for the first quarter of fiscal 2018. The Company will recast prior periods to conform to the new income statement presentation. As a result, the Company expects to reclassify net benefit costs related to its pension plans totaling approximately $3.0 million in fiscal 2017 ($1.0 million from cost of sales and $2.0 million from SG&A expenses) and $45.0 million in fiscal 2016 ($10.0 million from cost of sales and $35.0 million from SG&A expenses) to other income and expense. The fiscal 2016 net benefit costs included $42.1 million of pension settlement losses related to a completed voluntary lump-sum payout program; see Note 16 for additional information. In fiscal 2018, the Company expects to record approximately $3.0 to $4.0 million of net benefit costs within other income and expense. Share-based compensation In March 2016, the FASB issued new guidance to simplify several aspects of accounting for share-based payment transactions, including the income tax effects of share-based payments, recognition of forfeitures, and presentation requirements in the statement of cash flows. This guidance is effective for the Company’s first quarter of fiscal 2018. The Company does not expect the adoption of this new guidance will have a material impact on its consolidated financial statements Leases In February 2016, the FASB issued new comprehensive lease accounting guidance that supersedes existing lease accounting guidance. Upon adoption of this new guidance, the Company will be required to recognize most leases on its balance sheet. This guidance is effective for the Company’s first quarter of fiscal 2020. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. Revenue recognition In May 2014, the FASB 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. The new guidance is effective for the Company’s first quarter of fiscal 2019 and allows for either a full-retrospective or a modified-retrospective transition method. The Company is currently in the process of assessing customer contracts and evaluating contractual provisions that may result in a change in the timing of revenue recognized in comparison with current guidance. Under current guidance, the Company generally recognizes revenue when products are shipped and risk of loss has transferred to the customer. The Company is evaluating whether contractual provisions may provide an enforceable right to payment for its customized products, which may require revenue recognition prior to the product being shipped to the customer. In addition, the Company is evaluating pricing provisions contained in certain of its customer contracts to determine the appropriate timing of revenue recognition based upon the new guidance. The Company continues to evaluate the impact this new guidance will have on its consolidated financial statements. Supplemental cash flow information: Years ended March 31, 2017 2016 2015 Interest paid $ 15.4 $ 10.7 $ 10.3 Income taxes paid 12.7 10.1 15.9 |
Acquisitions
Acquisitions | 12 Months Ended |
Mar. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2: Acquisitions Luvata HTS On November 30, 2016, the Company completed its acquisition of a 100% ownership interest in the Luvata HTS business for consideration totaling $415.6 million ($388.2 million, net of cash acquired). The purchase price included 2.2 million Modine common shares. The Company estimated the fair value of the common shares to be $24.3 million at November 30, 2016, which reflects restrictions on the sale of the shares for a minimum of one year. Now operating as Modine’s Commercial and Industrial Solutions (“CIS”) segment, this business is a leading global supplier of coils, coolers and coatings to the heating, ventilation, air conditioning, and refrigeration (“HVAC&R”) industry. CIS’s products cover a broad range of heat exchanger coils, commercial refrigeration and industrial coolers, and anti-corrosion coating solutions. The Company’s acquisition of Luvata HTS addressed, in particular, both the “Diversify” and “Grow” commitments of its transformational Strengthen, Diversify and Grow strategy launched in fiscal 2016. This acquisition provided Modine with an expanded industrial business portfolio, broader customer base, and reduced cyclical exposure. For the year ended March 31, 2017, the Company included $177.7 million of net sales and operating income of $7.5 million within its consolidated statement of operations attributable to four months of CIS operations. During the year ended March 31, 2017, the Company recorded $14.8 million of costs incurred directly related to the acquisition and integration of Luvata HTS as SG&A expenses within the consolidated statement of operations. These costs principally consisted of fees for i) transaction advisors, ii) legal, accounting, and other professional services, and iii) incremental costs directly associated with integration activities. To fund a significant portion of the Luvata HTS purchase price, the Company entered into new credit agreements in November 2016. See Note 15 for additional information. The Company allocated the total purchase price of Luvata HTS to the identifiable tangible and intangible assets acquired and the liabilities assumed based upon their estimated fair values as of the acquisition date. The Company based the estimated fair values primarily upon third-party valuations using assumptions developed by management and other information compiled by management, including, but not limited to, future expected cash flows. The Company allocated the excess of the purchase price over the net assets recognized to goodwill in the amount of $150.6 million, none of which the Company expects to be deductible for income tax purposes. Goodwill represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recorded as part of the acquisition includes Luvata HTS’s workforce and anticipated future cost and revenue synergies. At the time the March 31, 2017 financial statements were finalized, the Company was awaiting additional information to determine the fair value of certain assets acquired and liabilities assumed and therefore, the allocation of purchase price is considered preliminary. The Company expects to complete its evaluation of these matters in the first or second quarter of fiscal 2018. These matters primarily relate to income tax reserves and contingent liabilities, including reserves for environmental, legal, product warranty, and trade compliance matters. The Company’s preliminary allocation of the purchase price for its acquisition of Luvata HTS is as follows: Cash and cash equivalents $ 27.4 Trade accounts receivable 86.3 Inventories 55.7 Property, plant and equipment 120.6 Intangible assets 130.2 Goodwill 150.6 Other assets 38.6 Accounts payable (73.7 ) Accrued compensation and employee benefits (24.3 ) Deferred income taxes (39.3 ) Pensions (14.3 ) Other liabilities (42.2 ) Purchase price $ 415.6 Below is a summary of the methodologies and significant assumptions used in estimating the fair value of certain classes of acquired assets. The fair values were Inventories: Property, plant and equipment: The Company valued property, plant and equipment primarily utilizing the cost approach and also utilized the market approach in valuing acquired land and buildings. The cost approach considers the amount required to replace an asset by constructing or purchasing a new asset with similar utility and adjusting the value in consideration of depreciation as of the acquisition date. The cost approach relies on assumptions regarding replacement costs and the age and estimated remaining useful lives of the assets. The fair value of property, plant and equipment will be recognized as depreciation expense in our results of operations over the expected remaining useful lives of the individual assets. Intangible assets Gross Carrying Value Weighted- Average Useful Life Customer relationships $ 58.4 17 years Trade names 50.1 20 years Acquired technology 21.7 12 years Total intangible assets acquired $ 130.2 Customer relationships, for valuation purposes, represent the estimated fair value of Luvata HTS’s business relationship with existing customers, and were calculated by projecting the future after-tax cash flows from these customers, including the right to deploy and market additional products to them. The Company forecasted anticipated earnings from existing customers using recent years’ sales levels and considering a customer attrition rate based upon historical customer revenue information. The Company determined the value of acquired trade names using the relief-from-royalty method, a variation of the income approach, which applies an assumed royalty rate to revenue expected to be derived under the acquired trade names. The fair value was estimated to be the present value of the royalties saved because the Company owns the trade names. The Company also used the relief-from royalty method for its valuation of acquired technology, which largely relates to the design of mechanical and electrical components. The Company considered factors including the estimated contribution of the technology to the overall profitability of the products and the awareness level of the technology and its position in the market. The following unaudited supplemental pro forma information presents the Company’s consolidated results of operations as though the acquisition of Luvata HTS had occurred at the beginning of fiscal 2016. This pro forma financial information is presented for illustrative purposes only and is not considered to be indicative of the operating results that would have been achieved had the acquisition been completed as of the date indicated or the operating results that may be obtained in the future. Years ended March 31, 2017 2016 Net sales $ 1,881.6 $ 1,871.9 Net earnings attributable to Modine 35.8 1.5 Net earnings per share attributable to Modine shareholders: Basic $ 0.72 $ 0.03 Diluted 0.71 0.03 The supplemental pro forma financial information includes adjustments for: (i) annual amortization and depreciation expense totaling approximately $13.0 million for acquired tangible and intangible assets, (ii) estimated annual interest expense of approximately $14.0 million resulting from acquisition-related borrowings, and (iii) the estimated income tax impacts related to the pro forma adjustments, considering the statutory tax rates within the applicable jurisdictions. In addition, the pro forma financial information assumes that both $8.6 million of acquisition-related transaction costs, not including costs for integration-related activities, and $4.3 million of inventory purchase accounting adjustments were incurred during fiscal 2016. The pro forma financial information does not reflect expected cost or revenue synergies. Modine Puxin Thermal Systems (Jiangsu) Co. Ltd On January 29, 2016, the Company formed a joint venture, Modine Puxin Thermal Systems (Jiangsu) Co. Ltd. of Yangzhou, China, of which it owns 67 percent, and the joint venture partner, Jiangsu Puxin Heat Exchange System Co., Ltd, owns 33 percent. This joint venture, which is reported in the Asia segment, expedited the Company’s introduction of stainless steel heat exchangers for the light-, medium-, and heavy-duty commercial vehicle markets in China. In fiscal 2016, the Company contributed $1.4 million of cash and equipment and other assets totaling $2.3 million. In fiscal 2017, the Company contributed $0.3 million of additional cash consideration after certain seller indemnifi c |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Mar. 31, 2017 | |
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, the Company determines fair value 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 deferred compensation trusts to fund obligations under certain non-qualified deferred compensation plans. The securities’ fair values, which are recorded as other noncurrent assets, are determined based upon 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 $5.0 million and $3.2 million at March 31, 2017 and 2016, respectively. The year-over-year increase primarily relates to a deferred compensation plan in the recently-acquired CIS segment. The fair value of the Company’s long-term debt is disclosed in Note 15. Plan assets related to the Company’s pension plans were classified as follows: March 31, 2017 Level 1 Level 2 Total Money market investments $ - $ 5.6 $ 5.6 Common stocks 17.8 2.0 19.8 Corporate bonds - 9.3 9.3 Pooled equity funds 56.8 - 56.8 Pooled fixed-income funds 26.5 - 26.5 U.S. government and agency securities - 18.7 18.7 Other 1.4 1.4 2.8 Fair value excluding investment measured at net asset value 102.5 37.0 139.5 Investment measured at net asset value (a) 8.7 Total Fair Value $ 148.2 March 31, 2016 Level 1 Level 2 Total Money market investments $ - $ 5.8 $ 5.8 Common stocks 23.7 1.3 25.0 Corporate bonds - 8.4 8.4 Pooled equity funds 48.7 - 48.7 Pooled fixed-income funds 26.3 - 26.3 U.S. government and agency securities - 18.4 18.4 Other 0.4 1.2 1.6 Fair value excluding investment measured at net asset value 99.1 35.1 134.2 Investment measured at net asset value (a) 7.3 Total Fair Value $ 141.5 (a) As a practical expedient, the Company valued a collective trust fund using its net asset value per unit, and therefore, has not classified this investment within the fair value hierarchy. 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 upon quoted prices from active markets and classified 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. As of March 31, 2017 and 2016, the Company held no Level 3 assets within its pension plans. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 4: Stock-Based Compensation The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive compensation program for officers and other executives that consists of restricted stock and stock options granted for retention and performance, (2) a discretionary equity program for other management and key employees, and (3) 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, 2017, approximately 1.6 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 $7.4 million, $4.9 million, and $4.0 million in fiscal 2017, 2016, and 2015, respectively. Stock 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: Years ended March 31, 2017 2016 2015 Weighted-average fair value of options $ 4.60 $ 7.11 $ 10.21 Expected life of awards in years 6.4 6.3 6.3 Risk-free interest rate 1.4 % 1.9 % 2.1 % Expected volatility of the Company's stock 45.5 % 66.9 % 76.1 % Expected dividend yield on the Company's stock 0.0 % 0.0 % 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 Modine’s common stock on the date of grant. The risk-free interest rate was based upon 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 upon 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 upon historical patterns and the terms of the options. Outstanding options granted vest 25 percent annually for four years. The Company used a pre-vesting forfeiture rate of 2.5 percent as an estimate of expected forfeitures prior to completing the required service period. A summary of stock option activity for fiscal 2017 was as follows: Shares Weighted-average exercise price Weighted-average remaining contractual term (years) Aggregate intrinsic value Outstanding, beginning 1.5 $ 10.82 Granted 0.3 10.00 Exercised (0.1 ) 9.23 Forfeited or expired (0.2 ) 21.76 Outstanding, ending 1.5 $ 9.83 5.5 $ 4.4 Exercisable, March 31, 2017 1.0 $ 9.27 4.0 $ 3.6 The aggregate intrinsic value represents the difference between the closing price of Modine’s common shares on the last trading day of fiscal 2017 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 is as follows: Years ended March 31, 2017 2016 2015 Intrinsic value of stock options exercised $ 0.5 $ 0.4 $ 0.4 Proceeds from stock options exercised $ 0.9 $ 0.5 $ 0.6 Restricted Stock: A summary of restricted stock activity for fiscal 2017 was as follows: Shares Weighted- average price Non-vested balance, beginning 0.6 $ 11.29 Granted 0.4 9.98 Vested (0.4 ) 10.05 Non-vested balance, ending 0.6 $ 11.21 Restricted Stock – Performance-Based Shares: 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 after the end of that three-year performance period, if the performance targets have been achieved. The performance components of the programs initiated in fiscal 2017, 2016, and 2015 were 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 a three-year performance period, commencing with the fiscal year of grant. |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Mar. 31, 2017 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | Note 5: Restructuring Activities During fiscal 2017, the Company completed a voluntary retirement program for certain U.S. salaried employees and implemented targeted headcount reductions at several locations. The Company engaged in these restructuring activities as part of its Strengthen, Diversify and Grow strategic initiative, particularly in support of its objective to reduce operational and SG&A cost structures. During fiscal 2016, the Company announced a plan to close its Washington, Iowa manufacturing facility and recorded severance costs as a result. The Company completed the transfer of production from Washington to other Americas segment manufacturing facilities in fiscal 2017. Also during fiscal 2016, the Company completed the transfer of production from its McHenry, Illinois manufacturing facility to other 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 the Brazil manufacturing facility within its Americas segment. The headcount reductions were in response to the economic slowdown in Brazil and were aimed at maintaining profitability in this business despite lower sales volume. In addition, the Company has engaged in restructuring activities within its Europe segment. These restructuring activities have included implementing headcount reductions, exiting certain non-core product lines based upon Modine’s global product strategy, reducing manufacturing costs, consolidating production facilities, 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: Years ended March 31, 2017 2016 2015 Employee severance and related benefits $ 5.3 $ 12.8 $ 1.2 Other restructuring and repositioning expenses 5.6 3.8 3.5 Total $ 10.9 $ 16.6 $ 4.7 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: Years ended March 31, 2017 2016 Beginning balance $ 14.7 $ 9.9 Additions 5.3 12.8 Payments (12.9 ) (8.5 ) Effect of exchange rate changes (0.6 ) 0.5 Ending balance $ 6.5 $ 14.7 During fiscal 2017, the Company sold two previously-closed manufacturing facilities within its Americas segment and a facility within its Europe segment, for cash proceeds totaling $5.4 million. As a result of the facility sales, the Company recorded net gains totaling $2.0 million. During fiscal 2015, the Company sold a wind tunnel within its Europe segment for cash proceeds of $5.8 million and recognized a gain of $3.2 million as a result. During fiscal 2016, the Company recorded an asset impairment charge of $9.9 million within its Europe segment to write down long-lived assets at a manufacturing facility in Germany to fair value. |
Other Income and Expense
Other Income and Expense | 12 Months Ended |
Mar. 31, 2017 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Note 6: Other Income and Expense Other income and expense consisted of the following: Years ended March 31, 2017 2016 2015 Equity in earnings of non-consolidated affiliate $ 0.1 $ 0.1 $ 0.6 Interest income 0.4 0.4 0.5 Foreign currency transactions (a) (1.9 ) (1.3 ) (0.9 ) Gain from insurance recovery (b) - 9.5 - Total other (expense) income - net $ (1.4 ) $ 8.7 $ 0.2 (a) 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. (b) During fiscal 2016, the Company settled an insurance claim related to machinery and equipment destroyed in a fire at its Airedale facility and recorded a gain of $9.5 million. See Note 1 for additional information. |
Income Taxes
Income Taxes | 12 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 7: Income Taxes The U.S. and foreign components of earnings from continuing operations before income taxes and the provision or benefit for income taxes consisted of the following: Years ended March 31, 2017 2016 2015 Components of earnings (loss) from continuing operations before income taxes: United States $ (8.6 ) $ (15.4 ) $ 31.1 Foreign 29.4 5.5 10.1 Total earnings (loss) from continuing operations before income taxes $ 20.8 $ (9.9 ) $ 41.2 Income tax expense (benefit): Federal: Current $ 0.1 $ 0.1 $ 0.4 Deferred (3.8 ) (13.0 ) 7.1 State: Current 0.3 0.2 - Deferred (0.2 ) (2.5 ) 1.1 Foreign: Current 10.1 9.6 12.7 Deferred (0.6 ) (3.3 ) (2.3 ) Total income tax expense (benefit) $ 5.9 $ (8.9 ) $ 19.0 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 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, 2017 2016 2015 Statutory federal tax 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit (3.3 ) 11.5 2.4 Taxes on non-U.S. earnings and losses (3.5 ) 26.4 (4.9 ) Valuation allowance 1.2 (20.9 ) 8.3 Tax credits (9.0 ) 20.5 (6.1 ) Compensation 2.9 (3.7 ) 1.0 Tax rate or law changes (2.5 ) 1.3 1.2 Uncertain tax positions, net of settlements 5.6 (4.3 ) 2.2 Notional interest deductions (8.8 ) - - Dividend repatriation 7.1 16.0 2.4 Other 3.7 8.1 4.6 Effective tax rate 28.4 % 89.9 % 46.1 % During fiscal 2017, the Company recorded a valuation allowance of $2.0 million on certain deferred tax assets in a foreign jurisdiction after determining it was more likely than not the deferred tax assets would not be realized. Also during fiscal 2017, the Company recorded a net reduction of deferred tax asset valuation allowances totaling $1.8 million in other tax jurisdictions. During fiscal 2016, the Company reversed a valuation allowance of $3.0 million on certain deferred tax assets in a foreign jurisdiction after determining it was more likely than not the deferred tax assets would be realized. In fiscal 2016 and 2015, the Company recorded a net increase in deferred tax asset valuation allowances totaling $5.0 million and $2.6 million, respectively, in other tax jurisdictions. The Company will continue to provide valuation allowances against its net deferred tax assets in each applicable tax jurisdiction 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. The tax effects of temporary differences that gave rise to deferred tax assets and liabilities were as follows: March 31, 2017 2016 Deferred tax assets: Accounts receivable $ 0.4 $ 0.1 Inventories 5.0 3.6 Plant and equipment 3.7 4.3 Pension and employee benefits 51.8 52.6 Net operating loss, capital loss, and credit carry-forwards 147.5 109.4 Other, principally accrued liabilities 10.9 7.5 Total gross deferred tax assets 219.3 177.5 Less: valuation allowances (49.6 ) (50.8 ) Net deferred tax assets 169.7 126.7 Deferred tax liabilities: Plant and equipment 21.2 5.5 Goodwill 4.7 0.6 Intangible assets 43.3 1.5 Other 1.8 0.2 Total gross deferred tax liabilities 71.0 7.8 Net deferred tax asset $ 98.7 $ 118.9 Unrecognized tax benefits were as follows: Years ended March 31, 2017 2016 Beginning balance $ 5.9 $ 5.6 Gross increases - tax positions in prior period 0.3 - Gross decreases - tax positions in prior period (0.2 ) (0.1 ) Gross increases - due to acquisition 7.3 - Gross increases - tax positions in current period 0.9 0.4 Ending balance $ 14.2 $ 5.9 The Company’s liability for unrecognized tax benefits as of March 31, 2017 was $14.2 million, and if recognized, $11.9 million would have an effective tax rate impact. The Company estimates that reductions to unrecognized tax benefits in fiscal 2018 due to lapses in statutes of limitations and audit settlements will total $2.4 million, which, if recognized, would have a $1.6 million impact on the effective tax rate. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. During fiscal 2017 and 2016, interest and penalties included within income tax expense in the consolidated statements of operations were not significant. At March 31, 2017, $0.8 million of accrued interest and penalties were included in the consolidated balance sheet. At March 31, 2016, 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, 2017, the Company was under income tax examination in a number of foreign jurisdictions. The following tax years remain subject to examination for the Company’s major tax jurisdictions: Germany Fiscal 2011 - Fiscal 2016 Italy Calendar 2011 - Fiscal 2016 United States Fiscal 2014 - Fiscal 2016 At March 31, 2017, the Company had federal and state tax credits of $27.4 million that, if not utilized against U.S. taxes, will expire between fiscal 2018 and 2037. The Company also had state and local tax loss carry-forwards of $212.7 million that, if not utilized against state apportioned taxable income, will expire at various times during fiscal 2018 and 2037. In addition, the Company had tax loss and foreign attribute carry-forwards of $485.0 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, $167.0 million of these carry-forwards will expire at various times during fiscal 2018 through 2037, and $318.0 million, mainly related to Germany, Italy, and India, will not expire due to an unlimited carry-forward period. At March 31, 2017, the Company provided $0.3 million of tax on undistributed earnings for certain subsidiaries not considered permanently reinvested. Undistributed earnings totaling $505.0 million are considered permanently reinvested in the Company’s remaining foreign operations, and no provision has been made for 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, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8: Earnings Per Share The components of basic and diluted earnings per share were as follows: Years ended March 31, 2017 2016 2015 Basic: Earnings (loss) from continuing operations $ 14.9 $ (1.0 ) $ 22.2 Less: Net earnings attributable to noncontrolling interest (0.7 ) (0.6 ) (1.0 ) Less: Undistributed earnings attributable to unvested shares (0.2 ) - (0.2 ) Earnings (loss) from continuing operations available to Modine shareholders 14.0 (1.6 ) 21.0 Earnings from discontinued operations, net of income taxes - - 0.6 Net earnings (loss) available to Modine shareholders $ 14.0 $ (1.6 ) $ 21.6 Weighted-average shares outstanding - basic 47.8 47.3 47.2 Basic Earnings Per Share: Earnings (loss) per share - continuing operations $ 0.29 $ (0.03 ) $ 0.45 Earnings per share - discontinued operations - - 0.01 Net earnings (loss) per share - basic $ 0.29 $ (0.03 ) $ 0.46 Diluted: Earnings (loss) from continuing operations $ 14.9 $ (1.0 ) $ 22.2 Less: Net earnings attributable to noncontrolling interest (0.7 ) (0.6 ) (1.0 ) Less: Undistributed earnings attributable to unvested shares (0.1 ) - (0.2 ) Earnings (loss) from continuing operations available to Modine shareholders 14.1 (1.6 ) 21.0 Earnings from discontinued operations, net of income taxes - - 0.6 Net earnings (loss) available to Modine shareholders $ 14.1 $ (1.6 ) $ 21.6 Weighted-average shares outstanding - basic 47.8 47.3 47.2 Effect of dilutive securities 0.5 - 0.6 Weighted-average shares outstanding - diluted 48.3 47.3 47.8 Diluted Earnings Per Share: Earnings (loss) per share - continuing operations $ 0.29 $ (0.03 ) $ 0.44 Earnings per share - discontinued operations - - 0.01 Net earnings (loss) per share - diluted $ 0.29 $ (0.03 ) $ 0.45 For the years ended March 31, 2017, 2016, and 2015, the calculation of diluted earnings per share excluded 0.8 million, 0.8 million, and 0.6 million stock options, respectively, because they were anti-dilutive. For the year ended March 31, 2016, the total number of potentially-dilutive securities was 0.4 million. However, these securities were not included in the computation of diluted net loss per share since to do so would have decreased the loss per share. |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Inventories | Note 9: Inventories Inventories consisted of the following: March 31, 2017 2016 Raw materials and work in process $ 127.7 $ 79.5 Finished goods 40.8 31.5 Total inventories $ 168.5 $ 111.0 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 10: Property, Plant and Equipment Property, plant and equipment, including depreciable lives, consisted of the following: March 31, 2017 2016 Land $ 18.9 $ 7.2 Buildings and improvements (10-40 years) 255.6 221.3 Machinery and equipment (3-12 years) 755.5 694.3 Office equipment (3-10 years) 92.5 84.1 Construction in progress 55.1 36.7 1,177.6 1,043.6 Less: accumulated depreciation (718.6 ) (705.0 ) Net property, plant and equipment $ 459.0 $ 338.6 Depreciation expense totaled $54.2 million, $48.6 million, and $50.0 million for the years ended March 31, 2017, 2016, and 2015, respectively. Gains and losses related to the disposal of property, plant and equipment are recorded in SG&A expenses. For the years ended March 31, 2017, 2016, and 2015, total losses related to the disposal of property, plant and equipment were $0.4 million, $0.4 million, and $1.1 million, respectively. |
Investment in Affiliate
Investment in Affiliate | 12 Months Ended |
Mar. 31, 2017 | |
Investment in Affiliate [Abstract] | |
Investment in Affiliate | Note 11: Investment in Affiliate The Company owns 50 percent of Nikkei Heat Exchanger Company, Ltd. (“NEX”). The Company accounts for its investment in this non-consolidated affiliate using the equity method. At March 31, 2017 and 2016, the Company included its investment in NEX of $3.3 million and $3.2 million, respectively, within other noncurrent assets on the consolidated balance sheets. At March 31, 2017, the investment in NEX is equal to the Company's investment in the underlying assets. The Company reports its equity in earnings from NEX within other income and expense in the consolidated statements of operations, using a one-month reporting delay. The Company’s share of NEX’s earnings for the years ended March 31, 2017, 2016, and 2015 was $0.1 million, $0.1 million, and $0.6 million, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Mar. 31, 2017 | |
Intangible Assets [Abstract] | |
Intangible Assets | Note 12: Intangible Assets Intangible assets consisted of the following: March 31, 2017 March 31, 2016 Gross Carrying Value Accumulated Amortization Net Intangible Assets Gross Carrying Value Accumulated Amortization Net Intangible Assets Customer relationships $ 60.5 $ (1.7 ) $ 58.8 $ 2.0 $ (0.4 ) $ 1.6 Trade names 58.4 (7.2 ) 51.2 8.9 (6.3 ) 2.6 Acquired technology 27.0 (2.9 ) 24.1 5.5 (1.5 ) 4.0 Total intangible assets $ 145.9 $ (11.8 ) $ 134.1 $ 16.4 $ (8.2 ) $ 8.2 Intangible assets as of March 31, 2017 include intangible assets related to the Company’s acquisition of Luvata HTS. See Note 2 for additional information. The Company recorded $4.1 million, $1.6 million, and $1.6 million of amortization expense during fiscal 2017, 2016, and 2015, respectively. Estimated future amortization expense is as follows: Fiscal Year Estimated Amortization Expense 2018 $ 9.4 2019 9.2 2020 9.1 2021 8.5 2022 7.4 2023 & Beyond 90.5 |
Goodwill
Goodwill | 12 Months Ended |
Mar. 31, 2017 | |
Goodwill [Abstract] | |
Goodwill | Note 13: Goodwill Changes in the carrying amount of goodwill, by segment and in the aggregate, were as follows: Asia BHVAC CIS Total Balance, March 31, 2015 $ 0.5 $ 15.7 $ - $ 16.2 Effect of exchange rate changes - (0.4 ) - (0.4 ) Balance, March 31, 2016 0.5 15.3 - 15.8 Acquired Goodwill - - 150.6 150.6 Effect of exchange rate changes - (1.6 ) 0.3 (1.3 ) Balance, March 31, 2017 $ 0.5 $ 13.7 $ 150.9 $ 165.1 As a result of its acquisition of Luvata HTS, the Company recorded $150.6 million of goodwill. See Note 2 for additional information. 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 2017 for its BHVAC and Asia segments, by applying a fair value-based test, and determined that the fair value of its reporting units exceeded their respective book values. The Company will perform goodwill impairment testing for its recently-acquired CIS segment beginning in fiscal 2018. At both March 31, 2017 and 2016, accumulated goodwill impairment losses totaled $31.6 million and $8.7 million within the Americas and Europe segments, respectively. |
Product Warranties, Operating L
Product Warranties, Operating Leases, and Other Commitments | 12 Months Ended |
Mar. 31, 2017 | |
Product Warranties, Operating Leases, and Other Commitments [Abstract] | |
Product Warranties, Operating Leases, and Other Commitments | Note 14: Product Warranties, Operating Leases, and Other Commitments Product warranties Changes in accrued warranty costs were as follows: Years ended March 31, 2017 2016 Beginning balance $ 8.3 $ 10.4 Warranties recorded at time of sale 5.2 5.7 Adjustments to pre-existing warranties 0.3 (1.1 ) Additions due to acquisition 4.1 - Settlements (7.6 ) (6.7 ) Effect of exchange rate changes (0.3 ) - Ending balance $ 10.0 $ 8.3 Operating leases: Future minimum rental commitments at March 31, 2017 under non-cancelable operating leases were as follows: Fiscal Year 2018 $ 12.2 2019 10.1 2020 9.1 2021 7.8 2022 5.4 2023 and beyond 24.7 Total $ 69.3 Indemnification agreements: Commitments: |
Indebtedness
Indebtedness | 12 Months Ended |
Mar. 31, 2017 | |
Indebtedness [Abstract] | |
Indebtedness | Note 15: Indebtedness In November 2016, the Company entered into new credit agreements to fund a significant portion of its acquisition of Luvata HTS (see Note 2 for additional information). The Company executed an amended and restated credit agreement with a syndicate of banks that provides for both U.S. dollar- and euro-denominated term loan facilities and a multi-currency $175.0 million revolving credit facility expiring in November 2021, which replaced the Company’s then-existing revolver that would have expired in August 2018. Based upon the terms of the credit agreement and currency denomination, borrowings under both the term loans and revolving credit facility bear interest at a variable rate, primarily either the London Interbank Offered Rate (“LIBOR”) or Euro Interbank Offered Rate (“EURIBOR”), plus 137.5 to 250 basis points (3.0 percent weighted-average at March 31, 2017) depending on the Company’s leverage ratio, as described below. At March 31, 2017, the Company’s term loan borrowings totaled $268.9 million, with repayments scheduled through fiscal 2022. Also in November 2016, the Company issued $50.0 million of 5.8 percent Senior Notes with repayments ending in fiscal 2027. Long-term debt consisted of the following: Fiscal year of maturity March 31, 2017 March 31, 2016 Term Loans 2022 $ 268.9 $ - 6.8% Senior Notes 2021 117.0 125.0 5.8% Senior Notes 2027 50.0 - Other (a) 2032 8.3 9.0 444.2 134.0 Less: current portion (31.8 ) (8.5 ) Less: unamortized debt issuance costs (6.7 ) - Total long-term debt $ 405.7 $ 125.5 (a) Other long-term debt includes capital lease obligations and other financing-type obligations. Long-term debt matures as follows: Fiscal Year 2018 $ 31.8 2019 38.6 2020 43.8 2021 98.3 2022 184.1 2023 & beyond 47.6 Total $ 444.2 At March 31, 2017, the Company reported its revolving credit facility borrowings of $40.4 million as short-term debt on the consolidated balance sheet. At March 31, 2017, domestic letters of credit totaled $2.0 million, resulting in available borrowings under the Company’s revolving credit facility of $132.6 million. The Company also maintains credit agreements for its foreign subsidiaries, with outstanding short-term borrowings at March 31, 2017 and 2016 of $33.0 million and $28.6 million, respectively. At March 31, 2017, the Company’s foreign unused lines of credit totaled $20.0 million. In aggregate, the Company had total available lines of credit of $152.6 million at March 31, 2017. Provisions in the Company’s amended and restated credit agreement, 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 liens on substantially all domestic assets. In addition, the term loans require prepayments, as defined in the credit agreement, in the event the Company’s annual excess cash flow exceeds defined levels or in the event of certain asset sales. The Company is also subject to a leverage ratio covenant, which requires the Company to limit its consolidated indebtedness, less a portion of its 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”). As permitted by the credit agreements and in connection with the Company’s acquisition of Luvata HTS, this leverage ratio covenant limit has been temporarily raised to no more than three and three-quarters times Adjusted EBITDA through the second quarter of fiscal 2018, and thereafter to no more than three and one-half times Adjusted EBITDA through the first quarter of fiscal 2019. The Company is also subject to 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, 2017. 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, 2017 and 2016, the carrying value of Modine’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of approximately $170.0 million and $139.0 million, respectively. The fair value of the Senior Notes are categorized as Level 2 within the fair value hierarchy. Refer to Note 3 for the definition of a Level 2 fair value measurement. |
Pension and Employee Benefit Pl
Pension and Employee Benefit Plans | 12 Months Ended |
Mar. 31, 2017 | |
Pension and Employee Benefit Plans [Abstract] | |
Pension and Employee Benefit Plans | Note 16: 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 2017, 2016, and 2015 related to its primary domestic 401(k) plans. The Company also makes annual employer contributions into eligible 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 2017, 2016, and 2015 was $4.7 million, $4.6 million, and $5.9 million, respectively. In addition, the Company maintains non-qualified deferred compensation plans for eligible employees, and various non-U.S. 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 non-U.S. 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: In addition, the Company maintains non-contributory defined benefit pension plans that cover most of its domestic employees hired on or before December 31, 2003. The benefits provided are based primarily upon years of service and average compensation for salaried and some hourly employees. Benefits for other hourly employees are based upon a monthly retirement benefit amount. 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 non-U.S. subsidiaries of the Company also have legacy defined benefit plans which cover a smaller number of active employees and are substantially unfunded. The primary non-U.S. plans are maintained in Germany and Austria and are closed to new participants. The Company contributed $8.1 million, $6.7 million, and $5.9 million to its U.S. pension plans during fiscal 2017, 2016, and 2015, respectively. These contributions are reported in the change in other liabilities in the consolidated statements of cash flows. During fiscal 2016, in an effort to reduce the size, volatility, mortality risk, and costs associated with its U.S. pension plans, the Company offered a voluntary lump-sum payout program to certain eligible former employees. Approximately 2,000 participants accepted the lump-sum settlement offer and a total of $65.3 million was paid from pension plan assets during fiscal 2016, which reduced the Company’s pension obligation by the same amount. In connection with these lump-sum payouts, the Company recorded $42.1 million of non-cash settlement losses related to the accelerated recognition of unamortized actuarial losses previously recorded on the consolidated balance sheets within accumulated other comprehensive loss. During fiscal 2016, the Company recorded $33.3 million and $8.8 million of settlement losses as SG&A expenses and cost of sales, respectively, within the consolidated statements of operations. Postretirement plans Measurement Date: 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, 2017 and 2016 were as follows: 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 261.0 $ 328.2 Service cost 0.6 0.6 Interest cost 9.8 11.2 Actuarial gain (0.5 ) (2.8 ) Benefits paid (a) (19.8 ) (78.1 ) Acquired obligations (b) 20.3 - Effect of exchange rate changes (1.6 ) 1.9 Benefit obligation at end of year $ 269.8 $ 261.0 Change in plan assets: Fair value of plan assets at beginning of year $ 141.5 $ 217.0 Actual return on plan assets 11.0 (5.3 ) Benefits paid (a) (19.8 ) (78.1 ) Employer contributions 9.5 7.9 Acquired plan assets (b) 6.0 - Fair value of plan assets at end of year $ 148.2 $ 141.5 Funded status at end of year $ (121.6 ) $ (119.5 ) Amounts recognized in the consolidated balance sheets: Current liability $ (2.2 ) $ (0.9 ) Noncurrent liability (119.4 ) (118.6 ) $ (121.6 ) $ (119.5 ) (a) In fiscal 2016, $65.3 million was paid from plan assets in connection with lump-sum payouts. (b) As a result of its acquisition of Luvata HTS, the Company acquired pension plans in Italy, Austria and the U.S. See Note 2 for additional information. The accumulated benefit obligation for pension plans was $266.8 million and $257.9 million as of March 31, 2017 and 2016, respectively. The net actuarial loss related to the pension plans recognized in accumulated other comprehensive loss was $156.8 million and $162.0 million as of March 31, 2017 and 2016, respectively. Costs for the Company’s pension plans included the following components for the fiscal years ended March 31, 2017, 2016, and 2015: 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 0.6 $ 0.6 $ 0.5 Interest cost 9.8 11.2 13.0 Expected return on plan assets (12.3 ) (14.9 ) (16.7 ) Amortization of net actuarial loss 5.6 6.4 5.5 Settlements (a) - 42.1 - Net periodic benefit cost $ 3.7 $ 45.4 $ 2.3 Other changes in benefit obligation recognized in other comprehensive loss (income): Net actuarial loss $ 1.0 $ 17.5 $ 46.4 Amortization of net actuarial loss (a) (5.6 ) (48.5 ) (5.5 ) Total recognized in other comprehensive (income) loss $ (4.6 ) $ (31.0 ) $ 40.9 (a) During fiscal 2016, in connection with lump-sum payouts to pension plan participants, the Company recorded $42.1 million of settlement losses, which were previously recorded in accumulated other comprehensive loss. The Company estimates $5.6 million of net actuarial loss for its pension plans will be amortized from accumulated other comprehensive loss into net periodic benefit cost during fiscal 2018. The Company used a discount rate of 4.1% as of both March 31, 2017 and 2016 for determining its benefit obligations under its U.S. pension plans. The Company used a weighted-average discount rate of 1.7% and 1.8% as of March 31, 2017 and 2016, respectively, in determining its benefit obligations under its non-U.S. pension plans. The Company used a discount rate of 4.1%, 4.3%, and 4.7% to determine its costs under its U.S. pension plans for the fiscal years ended March 31, 2017, 2016, and 2015, respectively. The Company used a discount rate of 1.7%, 1.3%, and 3.0% to determine its costs under its non-U.S. pension plans for the fiscal years ended March 31, 2017, 2016, and 2015, 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. The Company used a similar process to determine the discount rate for its non-U.S. 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, 2017 and 2016 were as follows: Target allocation as of March 31, 2017 Plan assets 2017 2016 Equity securities 60 % 58 % 56 % Debt securities 38 % 38 % 36 % Cash 2 % 4 % 4 % Alternative assets - - 4 % 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, 2017 and 2016, 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 2017, 2016, and 2015 U.S. pension plan expense, the expected rate of return on plan assets was 8.0 percent. For fiscal 2018 U.S. pension plan expense, the Company has assumed a rate of return on plan assets of 7.5 percent. The Company’s funding policy for its U.S. 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 $13.1 million to these plans during fiscal 2018. Estimated pension benefit payments for the next ten fiscal years are as follows: Fiscal Year Estimated Pension Benefit Payments 2018 $ 17.1 2019 16.4 2020 17.0 2021 17.1 2022 17.6 2023-2027 90.4 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 17: 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: Foreign exchange contracts: The fair value of the Company’s derivative financial instruments recorded in the consolidated balance sheets were as follows: Balance Sheet Location March 31, 2017 March 31, 2016 Commodity derivatives Other current assets $ 0.7 $ - Commodity derivatives Other current liabilities - 0.1 Foreign exchange contracts Other current assets 0.2 0.1 The amounts recorded in the consolidated statements of operations for the Company’s derivative financial instruments were as follows: Statement of Operations Years ended March 31, Location 2017 2016 2015 Commodity derivatives Cost of sales $ 0.5 $ (0.7 ) $ (0.2 ) Foreign exchange contracts Other income (expense) - net 1.3 0.6 (1.1 ) Total gains (losses) $ 1.8 $ (0.1 ) $ (1.3 ) |
Contingencies and Litigation
Contingencies and Litigation | 12 Months Ended |
Mar. 31, 2017 | |
Contingencies and Litigation [Abstract] | |
Contingencies and Litigation | Note 18: Contingencies and Litigation Market risk: Credit risk: 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: · 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. Environmental: As a result of its acquisition of Luvata HTS in fiscal 2017, the Company assumed certain environmental obligations. The Company has recorded environmental accruals related to these matters, the most significant of which relates to historical soil and groundwater contamination remediation and monitoring for a manufacturing site in the United States. In addition, the Company has recorded environmental investigation and remediation accruals related to subsurface contamination at its former manufacturing facility in the Netherlands, investigative work related to a previously-owned manufacturing facility in the United States, and groundwater contamination at its manufacturing facility in Brazil, along with accruals for lesser environmental matters at certain other facilities 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 $16.8 million and $5.1 million at March 31, 2017 and 2016, respectively. As additional information becomes available, the Company will re-assess the liabilities related to these matters and revise the estimated accruals, if necessary. Based upon 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. Brazil antitrust investigation: Other litigation: |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 19: Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows: Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2016 $ (36.0 ) $ (138.2 ) $ (174.2 ) Other comprehensive income (loss) before reclassifications (10.8 ) (0.3 ) (11.1 ) Reclassifications for amortization of unrecognized net loss (a) - 5.2 5.2 Income taxes - (1.7 ) (1.7 ) Total other comprehensive income (loss) (10.8 ) 3.2 (7.6 ) Balance, March 31, 2017 $ (46.8 ) $ (135.0 ) $ (181.8 ) Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2015 $ (40.7 ) $ (157.9 ) $ (198.6 ) Other comprehensive income (loss) before reclassifications 4.7 (16.6 ) (11.9 ) Reclassifications: Amortization of unrecognized net loss (a) - 48.3 48.3 Amortization of unrecognized prior service credit (a) - (0.2 ) (0.2 ) Income taxes - (11.8 ) (11.8 ) Total other comprehensive loss 4.7 19.7 24.4 Balance, March 31, 2016 $ (36.0 ) $ (138.2 ) $ (174.2 ) (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 16 for additional information about the Company’s pension plans. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Mar. 31, 2017 | |
Segment and Geographic Information [Abstract] | |
Segment and Geographic Information | Note 20: Segment and Geographic Information The Company’s product lines consist of heat-transfer components and systems. The Company serves vehicular and commercial, industrial, and building HVAC&R markets. In November 2016, the Company acquired Luvata HTS and, commencing from the acquisition date, has operated and reported results for the acquired business as its Commercial and Industrial Solutions (“CIS”) segment. See Note 2 for additional information regarding the Luvata HTS acquisition. The Company’s Americas, Europe, and Asia segments represent its vehicular businesses and primarily serve the automotive, commercial vehicle, and off-highway markets. In addition, the Americas segment serves the automotive and commercial vehicle aftermarket in Brazil and provides coils to the commercial HVAC&R market in North America. The Company’s CIS segment provides coils, coolers, and coating solutions to customers throughout the world. The Company’s BHVAC segment provides heating, ventilating and air conditioning products to customers throughout the world. Each operating segment is managed by a vice president 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. The following is a summary of net sales, gross profit, and operating income by segment: Years ended March 31, Net sales: 2017 2016 2015 Americas $ 534.0 $ 585.5 $ 666.9 Europe 524.3 524.1 578.2 Asia 111.5 79.0 81.2 CIS 177.7 - - BHVAC 171.6 181.4 186.3 Segment total 1,519.1 1,370.0 1,512.6 Corporate and eliminations (16.1 ) (17.5 ) (16.2 ) Net sales $ 1,503.0 $ 1,352.5 $ 1,496.4 Years ended March 31, 2017 2016 2015 Gross profit: $'s % of sales $'s % of sales $'s % of sales Americas $ 86.6 16.2 % $ 100.1 17.1 % $ 109.1 16.3 % Europe 80.9 15.4 % 68.1 13.0 % 68.7 11.9 % Asia 18.7 16.8 % 12.2 15.5 % 11.5 14.2 % CIS 26.0 14.6 % - - - - BHVAC 47.8 27.8 % 54.2 29.9 % 55.9 30.0 % Segment total 260.0 17.1 % 234.6 17.1 % 245.2 16.2 % Corporate and eliminations (a) (6.7 ) - (11.1 ) - 1.3 - Gross profit $ 253.3 16.9 % $ 223.5 16.5 % $ 246.5 16.5 % Years ended March 31, Operating income: 2017 2016 2015 Americas $ 26.7 $ 36.2 $ 33.4 Europe 37.1 13.3 25.7 Asia 7.7 0.8 0.3 CIS 7.5 - - BHVAC 13.1 13.9 19.1 Segment total 92.1 64.2 78.5 Corporate and eliminations (a) (52.7 ) (71.7 ) (25.8 ) Operating income (loss) $ 39.4 $ (7.5 ) $ 52.7 (a) During fiscal 2017, the Company recorded $14.8 million of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. In addition, as a result of purchase accounting for the Luvata HTS acquisition, the Company wrote up acquired inventory to its estimated fair value and charged the write-up to cost of sales as the underlying inventory was sold. The Company recorded $4.3 million in cost of sales related to this inventory step-up at Corporate, as the impact of this purchase accounting adjustment is excluded from the Company’s measure of segment operating performance. During fiscal 2016, the Company recorded pension settlement losses of $42.1 million at Corporate, within SG&A expenses ($33.3 million) and cost of sales ($8.8 million). See Note 16 for additional information about the Company’s pension plans. Inter-segment sales are accounted for based upon 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 and central services expenses, and other costs that are either not directly attributable to an operating segment or not considered when management evaluates segment performance. The following is a summary of total assets by segment: March 31, 2017 2016 Americas $ 282.9 $ 267.2 Europe 269.4 301.9 Asia 111.3 104.0 CIS 576.0 - BHVAC 85.2 99.0 Corporate and eliminations 124.7 148.8 Total assets $ 1,449.5 $ 920.9 The following is a summary of capital expenditures and depreciation and amortization expense by segment: Years ended March 31, Capital expenditures: 2017 2016 2015 Americas $ 26.3 $ 26.7 $ 30.2 Europe 24.7 24.8 21.5 Asia 8.5 6.2 3.8 CIS 3.4 - - BHVAC 1.5 5.1 2.8 Total capital expenditures $ 64.4 $ 62.8 $ 58.3 Years ended March 31, Depreciation and amortization expense: 2017 2016 2015 Americas $ 22.7 $ 22.1 $ 21.3 Europe 16.5 18.0 19.8 Asia 7.0 6.5 7.2 CIS 7.9 - - BHVAC 4.2 3.6 3.3 Total depreciation and amortization expense $ 58.3 $ 50.2 $ 51.6 The following is a summary of net sales by geographical area, based upon the location of the selling unit: Years ended March 31, 2017 2016 2015 United States $ 657.8 $ 627.6 $ 669.3 Hungary 145.6 145.9 161.0 Germany 130.1 155.3 193.8 Austria 125.2 113.1 118.7 Italy 94.4 44.1 40.6 Other 349.9 266.5 313.0 Net sales $ 1,503.0 $ 1,352.5 $ 1,496.4 The following is a summary of property, plant and equipment by geographical area: March 31, 2017 2016 United States $ 124.7 $ 92.5 Italy 55.8 20.3 Mexico 47.0 30.9 Austria 44.3 44.2 China 40.0 33.6 Hungary 37.7 31.4 Germany 28.9 32.1 Other 80.6 53.6 Total property, plant and equipment $ 459.0 $ 338.6 The following is a summary of net sales by end market: Years ended March 31, 2017 2016 2015 Automotive $ 461.0 $ 396.8 $ 401.8 Commercial vehicle 382.5 459.8 512.5 Off-highway 202.8 206.2 274.6 HVAC&R 400.9 232.1 229.6 Other 55.8 57.6 77.9 Net sales $ 1,503.0 $ 1,352.5 $ 1,496.4 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | Note 21: Quarterly Financial Data (Unaudited) Quarterly financial data is summarized below for the years ended March 31, 2017 and 2016: Fiscal 2017 quarters ended June Sept. Dec. March Fiscal 2017 Net sales $ 347.2 $ 317.7 $ 349.8 $ 488.3 $ 1,503.0 Gross profit 62.0 47.7 58.7 84.9 253.3 Earnings (loss) from continuing operations (a) 8.9 (4.0 ) 1.9 8.1 14.9 Net earnings (loss) attributable to Modine (a) 8.6 (4.1 ) 1.7 8.0 14.2 Net earnings (loss) per share attributable to Modine shareholders: Basic $ 0.18 $ (0.09 ) $ 0.04 $ 0.16 $ 0.29 Diluted 0.18 (0.09 ) 0.04 0.16 0.29 Fiscal 2016 quarters ended June Sept. Dec. March Fiscal 2016 Net sales $ 346.1 $ 334.0 $ 328.7 $ 343.7 $ 1,352.5 Gross profit 57.0 45.7 58.6 62.2 223.5 Earnings (loss) from continuing operations (b) 5.5 (22.5 ) 8.2 7.8 (1.0 ) Net earnings (loss) attributable to Modine (b) 5.1 (22.5 ) 8.2 7.6 (1.6 ) Net earnings (loss) per share attributable to Modine shareholders: Basic $ 0.11 $ (0.47 ) $ 0.17 $ 0.16 $ (0.03 ) Diluted 0.11 (0.47 ) 0.17 0.16 (0.03 ) (a) During fiscal 2017, restructuring expenses totaled $2.3 million, $2.1 million, $1.6 million, and $4.9 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 5). During fiscal 2017, the Company sold two previously-closed manufacturing facilities in its Americas segment and a facility in its Europe segment and recognized net gains totaling $1.2 million and $0.8 million in the quarters ended September 30, 2016 and March 31, 2017, respectively. During fiscal 2017, acquisition- and integration-related costs totaled $1.4 million, $3.0 million, $7.2 million, and $3.2 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 2). During the fourth quarter of fiscal 2017, the Company recorded a deferred tax valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded income tax expense of $2.0 million (see Note 7). (b) During fiscal 2016, restructuring expenses totaled $2.6 million, $1.0 million, $1.6 million, and $11.4 million for the quarters ended June 30, 2015, September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 5). During the fourth quarter of fiscal 2016, the Company recorded a $9.9 million asset impairment charge related to a manufacturing facility in Germany (see Note 5). During fiscal 2016, non-cash pension settlement losses totaled $39.2 million, $1.1 million, and $1.8 million for the quarters ended September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 16). During the fourth quarter of fiscal 2016, the Company recorded a $9.5 million gain related to an insurance settlement for equipment losses resulting from the Airedale fire. Also during the fourth quarter of fiscal 2016, the Company reversed a deferred tax asset valuation allowance, and, as a result, recorded an income tax benefit related to a foreign tax jurisdiction of $3.0 million (see Note 7). |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017, 2016 and 2015 Additions Description Balance at Beginning of Period Charged (Benefit) to Costs and Expenses Charged to Other Accounts Balance at End of Period 2017: Valuation Allowance for Deferred Tax Assets $ 50.8 $ (0.3 ) $ (0.9 ) (a) $ 49.6 2016: Valuation Allowance for Deferred Tax Assets $ 48.0 $ 1.5 $ 1.3 (a) $ 50.8 2015: Valuation Allowance for Deferred Tax Assets $ 61.2 $ (6.8 ) $ (6.4 ) (a) $ 48.0 Notes: (a) Foreign currency translation, increases due to the acquisition of Luvata HTS and other adjustments |
Significant Accounting Polici31
Significant Accounting Policies (Policies) | 12 Months Ended |
Mar. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: |
Consolidation principles | Consolidation principles: 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 earnings. The Company includes Modine’s share of the affiliate’s net earnings in other income and expense. See Note 11 for additional information. |
Discontinued operations | Discontinued operations: |
Assets held for sale | Assets held for sale: |
Revenue recognition | Revenue recognition: |
Tooling costs | Tooling costs: |
Warranty | Warranty: |
Shipping and handling costs | Shipping and handling costs: |
Research and development | Research and development: |
Translation of foreign currencies | Translation of foreign currencies: |
Derivative instruments | Derivative instruments: |
Income taxes | Income taxes: |
Earnings per share | Earnings per share: |
Cash and cash equivalents | Cash and cash equivalents: |
Short-term investments | Short-term investments: |
Deferred compensation trusts | Deferred compensation trusts: |
Trade accounts receivable | Trade accounts receivable: |
Inventories | Inventories: |
Property, plant and equipment | Property, plant and equipment |
Goodwill | Goodwill: |
Impairment of long-lived assets | Impairment of long-lived assets: |
Environmental liabilities | Environmental liabilities: |
Self-insurance reserves | Self-insurance reserves: |
Stock-based compensation | Stock-based compensation: |
New Accounting Guidance | New Accounting Guidance: Pension costs In March 2017, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the income statement presentation of net periodic pension costs and net periodic postretirement benefit costs. This guidance requires companies to continue to present the service cost component of net benefit cost within the same financial statement line item as other employee compensation costs; however, other components of net benefit costs are required to be presented outside of results from operations. This will not impact consolidated net earnings. Early adoption is permitted, and the Company plans to adopt this guidance for the first quarter of fiscal 2018. The Company will recast prior periods to conform to the new income statement presentation. As a result, the Company expects to reclassify net benefit costs related to its pension plans totaling approximately $3.0 million in fiscal 2017 ($1.0 million from cost of sales and $2.0 million from SG&A expenses) and $45.0 million in fiscal 2016 ($10.0 million from cost of sales and $35.0 million from SG&A expenses) to other income and expense. The fiscal 2016 net benefit costs included $42.1 million of pension settlement losses related to a completed voluntary lump-sum payout program; see Note 16 for additional information. In fiscal 2018, the Company expects to record approximately $3.0 to $4.0 million of net benefit costs within other income and expense. Share-based compensation In March 2016, the FASB issued new guidance to simplify several aspects of accounting for share-based payment transactions, including the income tax effects of share-based payments, recognition of forfeitures, and presentation requirements in the statement of cash flows. This guidance is effective for the Company’s first quarter of fiscal 2018. The Company does not expect the adoption of this new guidance will have a material impact on its consolidated financial statements Leases In February 2016, the FASB issued new comprehensive lease accounting guidance that supersedes existing lease accounting guidance. Upon adoption of this new guidance, the Company will be required to recognize most leases on its balance sheet. This guidance is effective for the Company’s first quarter of fiscal 2020. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements. Revenue recognition In May 2014, the FASB 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. The new guidance is effective for the Company’s first quarter of fiscal 2019 and allows for either a full-retrospective or a modified-retrospective transition method. The Company is currently in the process of assessing customer contracts and evaluating contractual provisions that may result in a change in the timing of revenue recognized in comparison with current guidance. Under current guidance, the Company generally recognizes revenue when products are shipped and risk of loss has transferred to the customer. The Company is evaluating whether contractual provisions may provide an enforceable right to payment for its customized products, which may require revenue recognition prior to the product being shipped to the customer. In addition, the Company is evaluating pricing provisions contained in certain of its customer contracts to determine the appropriate timing of revenue recognition based upon the new guidance. The Company continues to evaluate the impact this new guidance will have on its consolidated financial statements. Supplemental cash flow information: Years ended March 31, 2017 2016 2015 Interest paid $ 15.4 $ 10.7 $ 10.3 Income taxes paid 12.7 10.1 15.9 |
Significant Accounting Polici32
Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Significant Accounting Policies [Abstract] | |
Supplemental cash flow information | Supplemental cash flow information: Years ended March 31, 2017 2016 2015 Interest paid $ 15.4 $ 10.7 $ 10.3 Income taxes paid 12.7 10.1 15.9 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Acquisitions [Abstract] | |
Preliminary allocation of purchase price | The Company’s preliminary allocation of the purchase price for its acquisition of Luvata HTS is as follows: Cash and cash equivalents $ 27.4 Trade accounts receivable 86.3 Inventories 55.7 Property, plant and equipment 120.6 Intangible assets 130.2 Goodwill 150.6 Other assets 38.6 Accounts payable (73.7 ) Accrued compensation and employee benefits (24.3 ) Deferred income taxes (39.3 ) Pensions (14.3 ) Other liabilities (42.2 ) Purchase price $ 415.6 |
Acquired intangible assets | Acquired intangible assets were as follows: Gross Carrying Value Weighted- Average Useful Life Customer relationships $ 58.4 17 years Trade names 50.1 20 years Acquired technology 21.7 12 years Total intangible assets acquired $ 130.2 |
Supplemental proforma information | This pro forma financial information is presented for illustrative purposes only and is not considered to be indicative of the operating results that would have been achieved had the acquisition been completed as of the date indicated or the operating results that may be obtained in the future. Years ended March 31, 2017 2016 Net sales $ 1,881.6 $ 1,871.9 Net earnings attributable to Modine 35.8 1.5 Net earnings per share attributable to Modine shareholders: Basic $ 0.72 $ 0.03 Diluted 0.71 0.03 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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: March 31, 2017 Level 1 Level 2 Total Money market investments $ - $ 5.6 $ 5.6 Common stocks 17.8 2.0 19.8 Corporate bonds - 9.3 9.3 Pooled equity funds 56.8 - 56.8 Pooled fixed-income funds 26.5 - 26.5 U.S. government and agency securities - 18.7 18.7 Other 1.4 1.4 2.8 Fair value excluding investment measured at net asset value 102.5 37.0 139.5 Investment measured at net asset value (a) 8.7 Total Fair Value $ 148.2 March 31, 2016 Level 1 Level 2 Total Money market investments $ - $ 5.8 $ 5.8 Common stocks 23.7 1.3 25.0 Corporate bonds - 8.4 8.4 Pooled equity funds 48.7 - 48.7 Pooled fixed-income funds 26.3 - 26.3 U.S. government and agency securities - 18.4 18.4 Other 0.4 1.2 1.6 Fair value excluding investment measured at net asset value 99.1 35.1 134.2 Investment measured at net asset value (a) 7.3 Total Fair Value $ 141.5 (a) As a practical expedient, the Company valued a collective trust fund using its net asset value per unit, and therefore, has not classified this investment within the fair value hierarchy. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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: Years ended March 31, 2017 2016 2015 Weighted-average fair value of options $ 4.60 $ 7.11 $ 10.21 Expected life of awards in years 6.4 6.3 6.3 Risk-free interest rate 1.4 % 1.9 % 2.1 % Expected volatility of the Company's stock 45.5 % 66.9 % 76.1 % Expected dividend yield on the Company's stock 0.0 % 0.0 % 0.0 % |
Summary of the stock option activity | A summary of stock option activity for fiscal 2017 was as follows: Shares Weighted-average exercise price Weighted-average remaining contractual term (years) Aggregate intrinsic value Outstanding, beginning 1.5 $ 10.82 Granted 0.3 10.00 Exercised (0.1 ) 9.23 Forfeited or expired (0.2 ) 21.76 Outstanding, ending 1.5 $ 9.83 5.5 $ 4.4 Exercisable, March 31, 2017 1.0 $ 9.27 4.0 $ 3.6 |
Information related to stock options exercised | Additional information related to stock options exercised is as follows: Years ended March 31, 2017 2016 2015 Intrinsic value of stock options exercised $ 0.5 $ 0.4 $ 0.4 Proceeds from stock options exercised $ 0.9 $ 0.5 $ 0.6 |
Summary of the restricted stock activity | A summary of restricted stock activity for fiscal 2017 was as follows: Shares Weighted- average price Non-vested balance, beginning 0.6 $ 11.29 Granted 0.4 9.98 Vested (0.4 ) 10.05 Non-vested balance, ending 0.6 $ 11.21 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Restructuring Activities [Abstract] | |
Restructuring and repositioning expenses | Restructuring and repositioning expenses were as follows: Years ended March 31, 2017 2016 2015 Employee severance and related benefits $ 5.3 $ 12.8 $ 1.2 Other restructuring and repositioning expenses 5.6 3.8 3.5 Total $ 10.9 $ 16.6 $ 4.7 |
Changes in accrued severance | Changes in accrued severance were as follows: Years ended March 31, 2017 2016 Beginning balance $ 14.7 $ 9.9 Additions 5.3 12.8 Payments (12.9 ) (8.5 ) Effect of exchange rate changes (0.6 ) 0.5 Ending balance $ 6.5 $ 14.7 |
Other Income and Expense (Table
Other Income and Expense (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Other Income and Expense [Abstract] | |
Other income and expense | Other income and expense consisted of the following: Years ended March 31, 2017 2016 2015 Equity in earnings of non-consolidated affiliate $ 0.1 $ 0.1 $ 0.6 Interest income 0.4 0.4 0.5 Foreign currency transactions (a) (1.9 ) (1.3 ) (0.9 ) Gain from insurance recovery (b) - 9.5 - Total other (expense) income - net $ (1.4 ) $ 8.7 $ 0.2 (a) 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. (b) During fiscal 2016, the Company settled an insurance claim related to machinery and equipment destroyed in a fire at its Airedale facility and recorded a gain of $9.5 million. See Note 1 for additional information. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Schedule of components of earnings (loss) from continuing operations before income taxes | The U.S. and foreign components of earnings from continuing operations before income taxes and the provision or benefit for income taxes consisted of the following: Years ended March 31, 2017 2016 2015 Components of earnings (loss) from continuing operations before income taxes: United States $ (8.6 ) $ (15.4 ) $ 31.1 Foreign 29.4 5.5 10.1 Total earnings (loss) from continuing operations before income taxes $ 20.8 $ (9.9 ) $ 41.2 Income tax expense (benefit): Federal: Current $ 0.1 $ 0.1 $ 0.4 Deferred (3.8 ) (13.0 ) 7.1 State: Current 0.3 0.2 - Deferred (0.2 ) (2.5 ) 1.1 Foreign: Current 10.1 9.6 12.7 Deferred (0.6 ) (3.3 ) (2.3 ) Total income tax expense (benefit) $ 5.9 $ (8.9 ) $ 19.0 |
Reconciliation of the federal statutory income tax rate to the company's effective income tax rate | Income tax expense attributable to earnings 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, 2017 2016 2015 Statutory federal tax 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit (3.3 ) 11.5 2.4 Taxes on non-U.S. earnings and losses (3.5 ) 26.4 (4.9 ) Valuation allowance 1.2 (20.9 ) 8.3 Tax credits (9.0 ) 20.5 (6.1 ) Compensation 2.9 (3.7 ) 1.0 Tax rate or law changes (2.5 ) 1.3 1.2 Uncertain tax positions, net of settlements 5.6 (4.3 ) 2.2 Notional interest deductions (8.8 ) - - Dividend repatriation 7.1 16.0 2.4 Other 3.7 8.1 4.6 Effective tax rate 28.4 % 89.9 % 46.1 % |
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, 2017 2016 Deferred tax assets: Accounts receivable $ 0.4 $ 0.1 Inventories 5.0 3.6 Plant and equipment 3.7 4.3 Pension and employee benefits 51.8 52.6 Net operating loss, capital loss, and credit carry-forwards 147.5 109.4 Other, principally accrued liabilities 10.9 7.5 Total gross deferred tax assets 219.3 177.5 Less: valuation allowances (49.6 ) (50.8 ) Net deferred tax assets 169.7 126.7 Deferred tax liabilities: Plant and equipment 21.2 5.5 Goodwill 4.7 0.6 Intangible assets 43.3 1.5 Other 1.8 0.2 Total gross deferred tax liabilities 71.0 7.8 Net deferred tax asset $ 98.7 $ 118.9 |
Reconciliation of unrecognized tax benefits | Unrecognized tax benefits were as follows: Years ended March 31, 2017 2016 Beginning balance $ 5.9 $ 5.6 Gross increases - tax positions in prior period 0.3 - Gross decreases - tax positions in prior period (0.2 ) (0.1 ) Gross increases - due to acquisition 7.3 - Gross increases - tax positions in current period 0.9 0.4 Ending balance $ 14.2 $ 5.9 |
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: Germany Fiscal 2011 - Fiscal 2016 Italy Calendar 2011 - Fiscal 2016 United States Fiscal 2014 - Fiscal 2016 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Components of basic and diluted earnings per share | The components of basic and diluted earnings per share were as follows: Years ended March 31, 2017 2016 2015 Basic: Earnings (loss) from continuing operations $ 14.9 $ (1.0 ) $ 22.2 Less: Net earnings attributable to noncontrolling interest (0.7 ) (0.6 ) (1.0 ) Less: Undistributed earnings attributable to unvested shares (0.2 ) - (0.2 ) Earnings (loss) from continuing operations available to Modine shareholders 14.0 (1.6 ) 21.0 Earnings from discontinued operations, net of income taxes - - 0.6 Net earnings (loss) available to Modine shareholders $ 14.0 $ (1.6 ) $ 21.6 Weighted-average shares outstanding - basic 47.8 47.3 47.2 Basic Earnings Per Share: Earnings (loss) per share - continuing operations $ 0.29 $ (0.03 ) $ 0.45 Earnings per share - discontinued operations - - 0.01 Net earnings (loss) per share - basic $ 0.29 $ (0.03 ) $ 0.46 Diluted: Earnings (loss) from continuing operations $ 14.9 $ (1.0 ) $ 22.2 Less: Net earnings attributable to noncontrolling interest (0.7 ) (0.6 ) (1.0 ) Less: Undistributed earnings attributable to unvested shares (0.1 ) - (0.2 ) Earnings (loss) from continuing operations available to Modine shareholders 14.1 (1.6 ) 21.0 Earnings from discontinued operations, net of income taxes - - 0.6 Net earnings (loss) available to Modine shareholders $ 14.1 $ (1.6 ) $ 21.6 Weighted-average shares outstanding - basic 47.8 47.3 47.2 Effect of dilutive securities 0.5 - 0.6 Weighted-average shares outstanding - diluted 48.3 47.3 47.8 Diluted Earnings Per Share: Earnings (loss) per share - continuing operations $ 0.29 $ (0.03 ) $ 0.44 Earnings per share - discontinued operations - - 0.01 Net earnings (loss) per share - diluted $ 0.29 $ (0.03 ) $ 0.45 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Inventories [Abstract] | |
Inventories | Inventories consisted of the following: March 31, 2017 2016 Raw materials and work in process $ 127.7 $ 79.5 Finished goods 40.8 31.5 Total inventories $ 168.5 $ 111.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment, including depreciable lives, consisted of the following: March 31, 2017 2016 Land $ 18.9 $ 7.2 Buildings and improvements (10-40 years) 255.6 221.3 Machinery and equipment (3-12 years) 755.5 694.3 Office equipment (3-10 years) 92.5 84.1 Construction in progress 55.1 36.7 1,177.6 1,043.6 Less: accumulated depreciation (718.6 ) (705.0 ) Net property, plant and equipment $ 459.0 $ 338.6 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Intangible Assets [Abstract] | |
Schedule of intangible assets | Intangible assets consisted of the following: March 31, 2017 March 31, 2016 Gross Carrying Value Accumulated Amortization Net Intangible Assets Gross Carrying Value Accumulated Amortization Net Intangible Assets Customer relationships $ 60.5 $ (1.7 ) $ 58.8 $ 2.0 $ (0.4 ) $ 1.6 Trade names 58.4 (7.2 ) 51.2 8.9 (6.3 ) 2.6 Acquired technology 27.0 (2.9 ) 24.1 5.5 (1.5 ) 4.0 Total intangible assets $ 145.9 $ (11.8 ) $ 134.1 $ 16.4 $ (8.2 ) $ 8.2 |
Total estimated annual amortization expense | Estimated future amortization expense is as follows: Fiscal Year Estimated Amortization Expense 2018 $ 9.4 2019 9.2 2020 9.1 2021 8.5 2022 7.4 2023 & Beyond 90.5 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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: Asia BHVAC CIS Total Balance, March 31, 2015 $ 0.5 $ 15.7 $ - $ 16.2 Effect of exchange rate changes - (0.4 ) - (0.4 ) Balance, March 31, 2016 0.5 15.3 - 15.8 Acquired Goodwill - - 150.6 150.6 Effect of exchange rate changes - (1.6 ) 0.3 (1.3 ) Balance, March 31, 2017 $ 0.5 $ 13.7 $ 150.9 $ 165.1 |
Product Warranties, Operating44
Product Warranties, Operating Leases, and Other Commitments (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 Beginning balance $ 8.3 $ 10.4 Warranties recorded at time of sale 5.2 5.7 Adjustments to pre-existing warranties 0.3 (1.1 ) Additions due to acquisition 4.1 - Settlements (7.6 ) (6.7 ) Effect of exchange rate changes (0.3 ) - Ending balance $ 10.0 $ 8.3 |
Schedule of future minimum rental commitments under non-cancelable operating leases | Future minimum rental commitments at March 31, 2017 under non-cancelable operating leases were as follows: Fiscal Year 2018 $ 12.2 2019 10.1 2020 9.1 2021 7.8 2022 5.4 2023 and beyond 24.7 Total $ 69.3 |
Indebtedness (Tables)
Indebtedness (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Indebtedness [Abstract] | |
Schedule of long-term indebtedness | Long-term debt consisted of the following: Fiscal year of maturity March 31, 2017 March 31, 2016 Term Loans 2022 $ 268.9 $ - 6.8% Senior Notes 2021 117.0 125.0 5.8% Senior Notes 2027 50.0 - Other (a) 2032 8.3 9.0 444.2 134.0 Less: current portion (31.8 ) (8.5 ) Less: unamortized debt issuance costs (6.7 ) - Total long-term debt $ 405.7 $ 125.5 (a) Other long-term debt includes capital lease obligations and other financing-type obligations. |
Maturities of long term debt and capital lease obligations | Long-term debt matures as follows: Fiscal Year 2018 $ 31.8 2019 38.6 2020 43.8 2021 98.3 2022 184.1 2023 & beyond 47.6 Total $ 444.2 |
Pension and Employee Benefit 46
Pension and Employee Benefit Plans (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016 were as follows: 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 261.0 $ 328.2 Service cost 0.6 0.6 Interest cost 9.8 11.2 Actuarial gain (0.5 ) (2.8 ) Benefits paid (a) (19.8 ) (78.1 ) Acquired obligations (b) 20.3 - Effect of exchange rate changes (1.6 ) 1.9 Benefit obligation at end of year $ 269.8 $ 261.0 Change in plan assets: Fair value of plan assets at beginning of year $ 141.5 $ 217.0 Actual return on plan assets 11.0 (5.3 ) Benefits paid (a) (19.8 ) (78.1 ) Employer contributions 9.5 7.9 Acquired plan assets (b) 6.0 - Fair value of plan assets at end of year $ 148.2 $ 141.5 Funded status at end of year $ (121.6 ) $ (119.5 ) Amounts recognized in the consolidated balance sheets: Current liability $ (2.2 ) $ (0.9 ) Noncurrent liability (119.4 ) (118.6 ) $ (121.6 ) $ (119.5 ) (a) In fiscal 2016, $65.3 million was paid from plan assets in connection with lump-sum payouts. (b) As a result of its acquisition of Luvata HTS, the Company acquired pension plans in Italy, Austria and the U.S. See Note 2 for additional information. |
Pension benefit plans | Costs for the Company’s pension plans included the following components for the fiscal years ended March 31, 2017, 2016, and 2015: 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 0.6 $ 0.6 $ 0.5 Interest cost 9.8 11.2 13.0 Expected return on plan assets (12.3 ) (14.9 ) (16.7 ) Amortization of net actuarial loss 5.6 6.4 5.5 Settlements (a) - 42.1 - Net periodic benefit cost $ 3.7 $ 45.4 $ 2.3 Other changes in benefit obligation recognized in other comprehensive loss (income): Net actuarial loss $ 1.0 $ 17.5 $ 46.4 Amortization of net actuarial loss (a) (5.6 ) (48.5 ) (5.5 ) Total recognized in other comprehensive (income) loss $ (4.6 ) $ (31.0 ) $ 40.9 (a) During fiscal 2016, in connection with lump-sum payouts to pension plan participants, the Company recorded $42.1 million of settlement losses, which were previously recorded in accumulated other comprehensive loss. |
Target and plan asset allocations | The Company’s U.S. pension plan weighted-average asset allocations at the measurement dates of March 31, 2017 and 2016 were as follows: Target allocation as of March 31, 2017 Plan assets 2017 2016 Equity securities 60 % 58 % 56 % Debt securities 38 % 38 % 36 % Cash 2 % 4 % 4 % Alternative assets - - 4 % 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 2018 $ 17.1 2019 16.4 2020 17.0 2021 17.1 2022 17.6 2023-2027 90.4 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 March 31, 2016 Commodity derivatives Other current assets $ 0.7 $ - Commodity derivatives Other current liabilities - 0.1 Foreign exchange contracts Other current assets 0.2 0.1 |
Amounts recorded in AOCI and in consolidated statement of operations | The amounts recorded in the consolidated statements of operations for the Company’s derivative financial instruments were as follows: Statement of Operations Years ended March 31, Location 2017 2016 2015 Commodity derivatives Cost of sales $ 0.5 $ (0.7 ) $ (0.2 ) Foreign exchange contracts Other income (expense) - net 1.3 0.6 (1.1 ) Total gains (losses) $ 1.8 $ (0.1 ) $ (1.3 ) |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Components of accumulated other comprehensive loss | Changes in accumulated other comprehensive loss were as follows: Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2016 $ (36.0 ) $ (138.2 ) $ (174.2 ) Other comprehensive income (loss) before reclassifications (10.8 ) (0.3 ) (11.1 ) Reclassifications for amortization of unrecognized net loss (a) - 5.2 5.2 Income taxes - (1.7 ) (1.7 ) Total other comprehensive income (loss) (10.8 ) 3.2 (7.6 ) Balance, March 31, 2017 $ (46.8 ) $ (135.0 ) $ (181.8 ) Foreign Currency Translation Defined Benefit Plans Total Balance, March 31, 2015 $ (40.7 ) $ (157.9 ) $ (198.6 ) Other comprehensive income (loss) before reclassifications 4.7 (16.6 ) (11.9 ) Reclassifications: Amortization of unrecognized net loss (a) - 48.3 48.3 Amortization of unrecognized prior service credit (a) - (0.2 ) (0.2 ) Income taxes - (11.8 ) (11.8 ) Total other comprehensive loss 4.7 19.7 24.4 Balance, March 31, 2016 $ (36.0 ) $ (138.2 ) $ (174.2 ) (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 16 for additional information about the Company’s pension plans. |
Segment and Geographic Inform49
Segment and Geographic Information (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
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: 2017 2016 2015 Americas $ 534.0 $ 585.5 $ 666.9 Europe 524.3 524.1 578.2 Asia 111.5 79.0 81.2 CIS 177.7 - - BHVAC 171.6 181.4 186.3 Segment total 1,519.1 1,370.0 1,512.6 Corporate and eliminations (16.1 ) (17.5 ) (16.2 ) Net sales $ 1,503.0 $ 1,352.5 $ 1,496.4 Years ended March 31, 2017 2016 2015 Gross profit: $'s % of sales $'s % of sales $'s % of sales Americas $ 86.6 16.2 % $ 100.1 17.1 % $ 109.1 16.3 % Europe 80.9 15.4 % 68.1 13.0 % 68.7 11.9 % Asia 18.7 16.8 % 12.2 15.5 % 11.5 14.2 % CIS 26.0 14.6 % - - - - BHVAC 47.8 27.8 % 54.2 29.9 % 55.9 30.0 % Segment total 260.0 17.1 % 234.6 17.1 % 245.2 16.2 % Corporate and eliminations (a) (6.7 ) - (11.1 ) - 1.3 - Gross profit $ 253.3 16.9 % $ 223.5 16.5 % $ 246.5 16.5 % Years ended March 31, Operating income: 2017 2016 2015 Americas $ 26.7 $ 36.2 $ 33.4 Europe 37.1 13.3 25.7 Asia 7.7 0.8 0.3 CIS 7.5 - - BHVAC 13.1 13.9 19.1 Segment total 92.1 64.2 78.5 Corporate and eliminations (a) (52.7 ) (71.7 ) (25.8 ) Operating income (loss) $ 39.4 $ (7.5 ) $ 52.7 (a) During fiscal 2017, the Company recorded $14.8 million of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. In addition, as a result of purchase accounting for the Luvata HTS acquisition, the Company wrote up acquired inventory to its estimated fair value and charged the write-up to cost of sales as the underlying inventory was sold. The Company recorded $4.3 million in cost of sales related to this inventory step-up at Corporate, as the impact of this purchase accounting adjustment is excluded from the Company’s measure of segment operating performance. During fiscal 2016, the Company recorded pension settlement losses of $42.1 million at Corporate, within SG&A expenses ($33.3 million) and cost of sales ($8.8 million). See Note 16 for additional information about the Company’s pension plans. The following is a summary of total assets by segment: March 31, 2017 2016 Americas $ 282.9 $ 267.2 Europe 269.4 301.9 Asia 111.3 104.0 CIS 576.0 - BHVAC 85.2 99.0 Corporate and eliminations 124.7 148.8 Total assets $ 1,449.5 $ 920.9 |
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: 2017 2016 2015 Americas $ 26.3 $ 26.7 $ 30.2 Europe 24.7 24.8 21.5 Asia 8.5 6.2 3.8 CIS 3.4 - - BHVAC 1.5 5.1 2.8 Total capital expenditures $ 64.4 $ 62.8 $ 58.3 Years ended March 31, Depreciation and amortization expense: 2017 2016 2015 Americas $ 22.7 $ 22.1 $ 21.3 Europe 16.5 18.0 19.8 Asia 7.0 6.5 7.2 CIS 7.9 - - BHVAC 4.2 3.6 3.3 Total depreciation and amortization expense $ 58.3 $ 50.2 $ 51.6 |
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, 2017 2016 2015 United States $ 657.8 $ 627.6 $ 669.3 Hungary 145.6 145.9 161.0 Germany 130.1 155.3 193.8 Austria 125.2 113.1 118.7 Italy 94.4 44.1 40.6 Other 349.9 266.5 313.0 Net sales $ 1,503.0 $ 1,352.5 $ 1,496.4 |
Summary of property, plant and equipment by geographical area | The following is a summary of property, plant and equipment by geographical area: March 31, 2017 2016 United States $ 124.7 $ 92.5 Italy 55.8 20.3 Mexico 47.0 30.9 Austria 44.3 44.2 China 40.0 33.6 Hungary 37.7 31.4 Germany 28.9 32.1 Other 80.6 53.6 Total property, plant and equipment $ 459.0 $ 338.6 |
Summary of net sales by end market | The following is a summary of net sales by end market: Years ended March 31, 2017 2016 2015 Automotive $ 461.0 $ 396.8 $ 401.8 Commercial vehicle 382.5 459.8 512.5 Off-highway 202.8 206.2 274.6 HVAC&R 400.9 232.1 229.6 Other 55.8 57.6 77.9 Net sales $ 1,503.0 $ 1,352.5 $ 1,496.4 |
Quarterly Financial Data (Una50
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Mar. 31, 2017 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Summary of quarterly financial data | Quarterly financial data is summarized below for the years ended March 31, 2017 and 2016: Fiscal 2017 quarters ended June Sept. Dec. March Fiscal 2017 Net sales $ 347.2 $ 317.7 $ 349.8 $ 488.3 $ 1,503.0 Gross profit 62.0 47.7 58.7 84.9 253.3 Earnings (loss) from continuing operations (a) 8.9 (4.0 ) 1.9 8.1 14.9 Net earnings (loss) attributable to Modine (a) 8.6 (4.1 ) 1.7 8.0 14.2 Net earnings (loss) per share attributable to Modine shareholders: Basic $ 0.18 $ (0.09 ) $ 0.04 $ 0.16 $ 0.29 Diluted 0.18 (0.09 ) 0.04 0.16 0.29 Fiscal 2016 quarters ended June Sept. Dec. March Fiscal 2016 Net sales $ 346.1 $ 334.0 $ 328.7 $ 343.7 $ 1,352.5 Gross profit 57.0 45.7 58.6 62.2 223.5 Earnings (loss) from continuing operations (b) 5.5 (22.5 ) 8.2 7.8 (1.0 ) Net earnings (loss) attributable to Modine (b) 5.1 (22.5 ) 8.2 7.6 (1.6 ) Net earnings (loss) per share attributable to Modine shareholders: Basic $ 0.11 $ (0.47 ) $ 0.17 $ 0.16 $ (0.03 ) Diluted 0.11 (0.47 ) 0.17 0.16 (0.03 ) (a) During fiscal 2017, restructuring expenses totaled $2.3 million, $2.1 million, $1.6 million, and $4.9 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 5). During fiscal 2017, the Company sold two previously-closed manufacturing facilities in its Americas segment and a facility in its Europe segment and recognized net gains totaling $1.2 million and $0.8 million in the quarters ended September 30, 2016 and March 31, 2017, respectively. During fiscal 2017, acquisition- and integration-related costs totaled $1.4 million, $3.0 million, $7.2 million, and $3.2 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 2). During the fourth quarter of fiscal 2017, the Company recorded a deferred tax valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded income tax expense of $2.0 million (see Note 7). (b) During fiscal 2016, restructuring expenses totaled $2.6 million, $1.0 million, $1.6 million, and $11.4 million for the quarters ended June 30, 2015, September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 5). During the fourth quarter of fiscal 2016, the Company recorded a $9.9 million asset impairment charge related to a manufacturing facility in Germany (see Note 5). During fiscal 2016, non-cash pension settlement losses totaled $39.2 million, $1.1 million, and $1.8 million for the quarters ended September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 16). During the fourth quarter of fiscal 2016, the Company recorded a $9.5 million gain related to an insurance settlement for equipment losses resulting from the Airedale fire. Also during the fourth quarter of fiscal 2016, the Company reversed a deferred tax asset valuation allowance, and, as a result, recorded an income tax benefit related to a foreign tax jurisdiction of $3.0 million (see Note 7). |
Significant Accounting Polici51
Significant Accounting Policies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | Nov. 30, 2016 | ||||
Business Acquisition [Line Items] | ||||||||||
Acquired ownership interest by the entity | 100.00% | |||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Gain within other income related to insurance settlement | $ 9.5 | $ 0 | [1] | $ 9.5 | [1] | $ 0 | [1] | |||
Assets Held For Sale [Abstract] | ||||||||||
Carrying value of assets held-for-sale | 8.5 | 5 | 8.5 | |||||||
Research and development [Abstract] | ||||||||||
Research and development cost | 64.4 | 61.1 | 62 | |||||||
Short-term investments [Abstract] | ||||||||||
Short-term investments | 3.3 | 4.7 | 3.3 | |||||||
Trade accounts receivable [Abstract] | ||||||||||
Trade receivables, allowance for doubtful accounts | 0.5 | 1.4 | 0.5 | |||||||
Trade receivables sold without recourse | 55.4 | 71.3 | 87 | |||||||
Loss on the sale of accounts receivables | (0.3) | (0.3) | (0.3) | |||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Expected reclassification of net benefit costs | 3 | 45 | ||||||||
Settlements | (1.8) | $ (1.1) | $ (39.2) | 42.1 | ||||||
Supplemental cash flow information [Abstract] | ||||||||||
Interest paid | 15.4 | 10.7 | 10.3 | |||||||
Income taxes paid | 12.7 | 10.1 | $ 15.9 | |||||||
Minimum [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Expected net periodic benefit cost | 3 | |||||||||
Maximum [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Expected net periodic benefit cost | $ 4 | |||||||||
Loss by Fire [Member] | ||||||||||
Unusual or Infrequent Item, or Both [Line Items] | ||||||||||
Gain within other income related to insurance settlement | 9.5 | |||||||||
Tools [Member] | ||||||||||
Tooling [Abstract] | ||||||||||
Property, plant and equipment, depreciable lives | 3 years | |||||||||
Company-owned tooling, net | 18.8 | $ 20.8 | 18.8 | |||||||
Customer owned tooling receivable | 8.5 | 7.8 | 8.5 | |||||||
Selling, General and Administrative Expenses [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Expected reclassification of net benefit costs | 2 | 35 | ||||||||
Cost of Sales [Member] | ||||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||||
Expected reclassification of net benefit costs | $ 1 | 10 | ||||||||
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 | 1.5 | ||||||||
Gain on sale (Pre-tax) | 0.9 | |||||||||
Gain on sale (After-tax) | $ 0.6 | |||||||||
Luvata HTS [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquired ownership interest by the entity | 100.00% | |||||||||
[1] | During fiscal 2016, the Company settled an insurance claim related to machinery and equipment destroyed in a fire at its Airedale facility and recorded a gain of $9.5 million. See Note 1 for additional information. |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Nov. 30, 2016 | Jan. 29, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 |
Business Acquisition [Line Items] | |||||||||
Acquired ownership interest by the entity | 100.00% | 100.00% | |||||||
Net sales | $ 177.7 | ||||||||
Operating income | 7.5 | ||||||||
Cost related to acquisition and integration | $ 3.2 | $ 7.2 | $ 3 | $ 1.4 | 14.8 | ||||
Allocation of Purchase price for Acquisition [Abstract] | |||||||||
Goodwill | 165.1 | 165.1 | $ 15.8 | $ 16.2 | |||||
Net earnings per share attributable to Modine Shareholders [Abstract] | |||||||||
Interest expense | 17.2 | 11.1 | 11.7 | ||||||
Purchase price allocation, net of cash | 364.2 | 1.4 | $ 0 | ||||||
Modine Puxin Thermal System (Jiangsu) Co. Ltd. [Member] | |||||||||
Allocation of Purchase price for Acquisition [Abstract] | |||||||||
Property, plant and equipment | $ 1.5 | ||||||||
Net earnings per share attributable to Modine Shareholders [Abstract] | |||||||||
Ownership percentage by parent | 67.00% | ||||||||
Purchase price allocation, net of cash | $ 1.4 | ||||||||
Additional cash consideration amount | $ 0.3 | $ 0.3 | |||||||
Purchase price allocation resulted in acquired equipment and other assets | 2.3 | ||||||||
Purchase price allocation resulted in property, plant and equipment/acquired equipment and other long-lived assets | 1.5 | ||||||||
Purchase price allocation, working capital net assets | $ 0.8 | ||||||||
Jiangsu Puxin Heat Exchange System Co., Ltd [Member] | |||||||||
Net earnings per share attributable to Modine Shareholders [Abstract] | |||||||||
Ownership percentage | 33.00% | ||||||||
Luvata HTS [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquired ownership interest by the entity | 100.00% | ||||||||
Purchase price allocation, net of cash acquired | $ 388.2 | ||||||||
Period of time required for shares to be held | 1 year | ||||||||
Allocation of Purchase price for Acquisition [Abstract] | |||||||||
Cash and cash equivalents | 27.4 | ||||||||
Trade accounts receivable | 86.3 | ||||||||
Inventories | 55.7 | ||||||||
Property, plant and equipment | 120.6 | ||||||||
Intangible assets | 130.2 | ||||||||
Goodwill | 150.6 | ||||||||
Other assets | 38.6 | ||||||||
Accounts payable | (73.7) | ||||||||
Accrued compensation and employee benefits | (24.3) | ||||||||
Deferred income taxes | (39.3) | ||||||||
Pensions | (14.3) | ||||||||
Other liabilities | (42.2) | ||||||||
Purchase price | 415.6 | ||||||||
Pro Forma Information [Abstract] | |||||||||
Net sales | $ 1,881.6 | 1,871.9 | |||||||
Net earnings attributable to Modine | $ 35.8 | $ 1.5 | |||||||
Net earnings per share attributable to Modine Shareholders [Abstract] | |||||||||
Basic (in dollars per share) | $ 0.72 | $ 0.03 | |||||||
Diluted (in dollars per share) | $ 0.71 | $ 0.03 | |||||||
Amortization and depreciation expense | $ 13 | ||||||||
Interest expense | 14 | ||||||||
Acquisition related transaction costs | 8.6 | ||||||||
Inventory purchase accounting adjustment | $ 4.3 | ||||||||
Purchase price allocation resulted in property, plant and equipment/acquired equipment and other long-lived assets | 120.6 | ||||||||
Luvata HTS [Member] | Customer Relationships [Member] | |||||||||
Allocation of Purchase price for Acquisition [Abstract] | |||||||||
Intangible assets | $ 58.4 | ||||||||
Weighted-average useful life, intangible assets, amortization period | 17 years | ||||||||
Luvata HTS [Member] | Trade Names [Member] | |||||||||
Allocation of Purchase price for Acquisition [Abstract] | |||||||||
Intangible assets | $ 50.1 | ||||||||
Weighted-average useful life, intangible assets, amortization period | 20 years | ||||||||
Luvata HTS [Member] | Acquired Technology [Member] | |||||||||
Allocation of Purchase price for Acquisition [Abstract] | |||||||||
Intangible assets | $ 21.7 | ||||||||
Weighted-average useful life, intangible assets, amortization period | 12 years | ||||||||
Luvata HTS [Member] | Common Stock [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Shares issued to acquire Luvata HTS (in shares) | 2.2 | ||||||||
Value of shares issued to acquire Luvata HTS | $ 24.3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 | |
Deferred Compensation Liability [Abstract] | |||
Deferred compensation obligations | $ 5 | $ 3.2 | |
Trading securities | 5 | 3.2 | |
U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | [1] | 148.2 | 141.5 |
U.S. Pension Plans [Member] | Fair Value Excluding Investment Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 139.5 | 134.2 | |
U.S. Pension Plans [Member] | Investment Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | [1] | 8.7 | 7.3 |
Money Market Investments [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 5.6 | 5.8 | |
Common Stocks [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 19.8 | 25 | |
Corporate Bonds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 9.3 | 8.4 | |
Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 56.8 | 48.7 | |
Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 26.5 | 26.3 | |
US Government and Agency Securities [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 18.7 | 18.4 | |
Other [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 2.8 | 1.6 | |
Level 1 [Member] | U.S. Pension Plans [Member] | Fair Value Excluding Investment Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 102.5 | 99.1 | |
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 | 17.8 | 23.7 | |
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 | 56.8 | 48.7 | |
Level 1 [Member] | Pooled Fixed-income Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 26.5 | 26.3 | |
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 | 1.4 | 0.4 | |
Level 2 [Member] | U.S. Pension Plans [Member] | Fair Value Excluding Investment Measured at Net Asset Value [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 37 | 35.1 | |
Level 2 [Member] | Money Market Investments [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 5.6 | 5.8 | |
Level 2 [Member] | Common Stocks [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 2 | 1.3 | |
Level 2 [Member] | Corporate Bonds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 9.3 | 8.4 | |
Level 2 [Member] | Pooled Equity Funds [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 0 | 0 | |
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 | 18.7 | 18.4 | |
Level 2 [Member] | Other [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | 1.4 | 1.2 | |
Level 3 [Member] | U.S. Pension Plans [Member] | |||
U.S. pension plan assets [Abstract] | |||
Fair value of plan assets | $ 0 | $ 0 | |
[1] | As a practical expedient, the Company valued a collective trust fund using its net asset value per unit, and therefore, has not classified this investment within the fair value hierarchy. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Compensation expense [Abstract] | |||
Stock-based compensation cost | $ 7.4 | $ 4.9 | $ 4 |
Stock Options [Member] | |||
Compensation expense [Abstract] | |||
Stock-based compensation cost | 1.1 | 0.9 | 0.9 |
Total fair value of stock options vesting | 1 | $ 0.9 | $ 0.9 |
Unrecognized compensation costs | $ 2.1 | ||
Weighted average period recognized | 2 years 6 months | ||
Assumptions for stock awards granted [Abstract] | |||
Weighted-average fair value of options (in dollars per share) | $ 4.60 | $ 7.11 | $ 10.21 |
Expected life of awards in years | 6 years 4 months 24 days | 6 years 3 months 18 days | 6 years 3 months 18 days |
Risk-free interest rate | 1.40% | 1.90% | 2.10% |
Expected volatility of the Company's stock | 45.50% | 66.90% | 76.10% |
Expected dividend yield on the Company's stock | 0.00% | 0.00% | 0.00% |
Annual vesting percentage | 25.00% | ||
Award performance period | 4 years | ||
Pre-vesting forfeiture rate | 2.50% | ||
Stock options activity [Rollforward] | |||
Outstanding, beginning (in shares) | 1.5 | ||
Granted (in shares) | 0.3 | ||
Exercised (in shares) | (0.1) | ||
Forfeited or expired (in shares) | (0.2) | ||
Outstanding, ending (in shares) | 1.5 | 1.5 | |
Exercisable, ending (in shares) | 1 | ||
Weighted average exercise price [Rollforward] | |||
Outstanding, beginning (in dollars per share) | $ 10.82 | ||
Granted (in dollars per share) | 10 | ||
Exercised (in dollars per share) | 9.23 | ||
Forfeited or expired (in dollars per share) | 21.76 | ||
Outstanding, ending (in dollars per share) | 9.83 | $ 10.82 | |
Exercisable, March 31 (in dollars per share) | $ 9.27 | ||
Summary of stock option activity [Abstract] | |||
Options, Outstanding, Weighted average remaining contractual term | 5 years 6 months | ||
Options, Outstanding, Aggregate intrinsic value | $ 4.4 | ||
Options, Exercisable, Weighted average remaining contractual term | 4 years | ||
Options, Exercisable, Aggregate intrinsic value | $ 3.6 | ||
Additional information related to stock options exercised [Abstract] | |||
Intrinsic value of stock options exercised | 0.5 | $ 0.4 | $ 0.4 |
Proceeds from stock options exercised | $ 0.9 | 0.5 | 0.6 |
Stock Options [Member] | Maximum [Member] | |||
Assumptions for stock awards granted [Abstract] | |||
Stock option term | 10 years | ||
Restricted Stock [Member] | |||
Compensation expense [Abstract] | |||
Stock-based compensation cost | $ 3.8 | 3.5 | 2.8 |
Total fair value of stock options vesting | 4 | $ 3.4 | 2.3 |
Unrecognized compensation costs | $ 4.8 | ||
Weighted average period recognized | 2 years 4 months 24 days | ||
Assumptions for stock awards granted [Abstract] | |||
Annual vesting percentage | 25.00% | ||
Award performance period | 4 years | ||
Restricted stock activity [Roll Forward] | |||
Non-vested balance, beginning (in shares) | 0.6 | ||
Granted (in shares) | 0.4 | ||
Vested (in shares) | (0.4) | ||
Non-vested balance, ending (in shares) | 0.6 | 0.6 | |
Weighted average price [Rollforward] | |||
Non-vested balance, beginning (in dollars per share) | $ 11.29 | ||
Granted (in dollars per share) | 9.98 | ||
Vested (in dollars per share) | 10.05 | ||
Non-vested balance, ending (in dollars per share) | $ 11.21 | $ 11.29 | |
Restricted Stock - Performance Based Shares [Member] | |||
Compensation expense [Abstract] | |||
Stock-based compensation cost | $ 2.5 | $ 0.5 | $ 0.3 |
Unrecognized compensation costs | $ 3.2 | ||
Weighted average period recognized | 1 year 9 months 18 days | ||
Assumptions for stock awards granted [Abstract] | |||
Award performance period | 3 years | 3 years | 3 years |
2008 Incentive Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 1.6 |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 31, 2017USD ($)Facility | Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | |
Restructuring and repositioning expenses [Abstract] | |||||||
Employee severance and related benefits | $ 5.3 | $ 12.8 | $ 1.2 | ||||
Other restructuring and repositioning expenses | 5.6 | 3.8 | 3.5 | ||||
Total | 10.9 | 16.6 | 4.7 | ||||
Changes in accrued severance [Roll Forward] | |||||||
Beginning balance | 14.7 | 9.9 | |||||
Additions | 5.3 | 12.8 | |||||
Payments | (12.9) | (8.5) | |||||
Effect of exchange rate changes | (0.6) | 0.5 | |||||
Ending balance | $ 6.5 | $ 14.7 | $ 6.5 | 14.7 | 9.9 | ||
Other [Abstract] | |||||||
Number of closed manufacturing facilities sold | Facility | 2 | ||||||
Cash proceeds from sale of facilities | $ 5.7 | 0.4 | 7.6 | ||||
Gain on the sale of assets | $ 0.8 | $ 1.2 | $ 3.2 | 2 | 0 | 3.2 | |
Asset impairment charges | $ 9.9 | 0 | 9.9 | 7.8 | |||
Europe Segment [Member] | |||||||
Other [Abstract] | |||||||
Cash proceeds from sale of facilities | 5.8 | ||||||
Gain on the sale of assets | $ 3.2 | ||||||
Asset impairment charges | $ 9.9 | ||||||
Europe and Americas Segment [Member] | |||||||
Other [Abstract] | |||||||
Cash proceeds from sale of facilities | 5.4 | ||||||
Gain on the sale of assets | $ 2 |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||||
Other Income and Expense [Abstract] | ||||||||
Equity in earnings of non-consolidated affiliate | $ 0.1 | $ 0.1 | $ 0.6 | |||||
Interest income | 0.4 | 0.4 | 0.5 | |||||
Foreign currency transactions | [1] | (1.9) | (1.3) | (0.9) | ||||
Gain from insurance recovery | $ 9.5 | 0 | [2] | 9.5 | [2] | 0 | [2] | |
Total other (expense) income - net | $ (1.4) | $ 8.7 | $ 0.2 | |||||
[1] | 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. | |||||||
[2] | During fiscal 2016, the Company settled an insurance claim related to machinery and equipment destroyed in a fire at its Airedale facility and recorded a gain of $9.5 million. See Note 1 for additional information. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Components of earnings (loss) from continuing operations before income taxes [Abstract] | |||||
United States | $ (8.6) | $ (15.4) | $ 31.1 | ||
Foreign | 29.4 | 5.5 | 10.1 | ||
Earnings (loss) from continuing operations before income taxes | 20.8 | (9.9) | 41.2 | ||
Federal [Abstract] | |||||
Current | 0.1 | 0.1 | 0.4 | ||
Deferred | (3.8) | (13) | 7.1 | ||
State [Abstract] | |||||
Current | 0.3 | 0.2 | 0 | ||
Deferred | (0.2) | (2.5) | 1.1 | ||
Foreign [Abstract] | |||||
Current | 10.1 | 9.6 | 12.7 | ||
Deferred | (0.6) | (3.3) | (2.3) | ||
Total income tax expense (benefit) | $ 5.9 | $ (8.9) | $ 19 | ||
Reconciliation of federal statutory income tax rate to company's effective income tax rate [Abstract] | |||||
Statutory federal tax | 35.00% | 35.00% | 35.00% | ||
State taxes, net of federal benefit | (3.30%) | 11.50% | 2.40% | ||
Taxes on non-U.S. earnings and losses | (3.50%) | 26.40% | (4.90%) | ||
Valuation allowance | 1.20% | (20.90%) | 8.30% | ||
Tax credits | (9.00%) | 20.50% | (6.10%) | ||
Compensation | 2.90% | (3.70%) | 1.00% | ||
Tax rate or law changes | (2.50%) | 1.30% | 1.20% | ||
Uncertain tax positions, net of settlements | 5.60% | (4.30%) | 2.20% | ||
Notional interest deductions | (8.80%) | 0.00% | 0.00% | ||
Dividend repatriation | 7.10% | 16.00% | 2.40% | ||
Other | 3.70% | 8.10% | 4.60% | ||
Effective tax rate | 28.40% | 89.90% | 46.10% | ||
Deferred tax assets [Abstract] | |||||
Accounts receivable | $ 0.4 | $ 0.1 | $ 0.4 | $ 0.1 | |
Inventories | 5 | 3.6 | 5 | 3.6 | |
Plant and equipment | 3.7 | 4.3 | 3.7 | 4.3 | |
Pension and employee benefits | 51.8 | 52.6 | 51.8 | 52.6 | |
Net operating loss, capital loss and credit carryforwards | 147.5 | 109.4 | 147.5 | 109.4 | |
Other, principally accrued liabilities | 10.9 | 7.5 | 10.9 | 7.5 | |
Total gross deferred tax assets | 219.3 | 177.5 | 219.3 | 177.5 | |
Less: valuation allowances | (49.6) | (50.8) | (49.6) | (50.8) | |
Net deferred tax assets | 169.7 | 126.7 | 169.7 | 126.7 | |
Deferred tax liabilities [Abstract] | |||||
Plant and equipment | 21.2 | 5.5 | 21.2 | 5.5 | |
Goodwill | 4.7 | 0.6 | 4.7 | 0.6 | |
Intangible assets | 43.3 | 1.5 | 43.3 | 1.5 | |
Other | 1.8 | 0.2 | 1.8 | 0.2 | |
Total gross deferred tax liabilities | 71 | 7.8 | 71 | 7.8 | |
Net deferred tax asset | 98.7 | 118.9 | 98.7 | 118.9 | |
Valuation Allowance [Line Items] | |||||
Reversal of deferred tax asset valuation allowances | 2 | 3 | 3 | ||
Reconciliation of unrecognized tax benefits [Roll Forward] | |||||
Balance, April 1 | 5.9 | 5.6 | |||
Gross increases - tax positions in prior period | 0.3 | 0 | |||
Gross decreases - tax positions in prior period | (0.2) | (0.1) | |||
Gross increases - due to acquisition | 7.3 | 0 | |||
Gross increases - tax positions in current period | 0.9 | 0.4 | |||
Balance, March 31 | 14.2 | 5.9 | 14.2 | 5.9 | $ 5.6 |
Unrecognized tax benefits that would impact effective tax rate | 11.9 | 11.9 | |||
Unrecognized tax benefits reductions in fiscal 2018 | 2.4 | ||||
Unrecognized tax benefits reductions in fiscal 2018 that would impact effective tax rate | 1.6 | ||||
Unrecognized tax benefits accrued interest and penalties | 0.8 | $ 0 | 0.8 | 0 | |
Undistributed foreign earnings [Abstract] | |||||
Tax on undistributed earnings of certain joint equity investment | 0.3 | 0.3 | |||
Undistributed earnings in remaining foreign operations | 505 | 505 | |||
Foreign Tax Jurisdictions [Member] | |||||
Valuation Allowance [Line Items] | |||||
Valuation allowance recorded against deferred tax assets | 2 | $ 5 | $ 2.6 | ||
Other Tax Jurisdictions [Member] | |||||
Valuation Allowance [Line Items] | |||||
Recorded net reduction of deferred tax asset valuation allowances | 1.8 | ||||
Federal and State [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax credit carryforwards, research and development | 27.4 | $ 27.4 | |||
Federal and State [Member] | Minimum [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax loss credit carryforward, expiration date | Mar. 31, 2018 | ||||
Federal and State [Member] | Maximum [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Tax loss credit carryforward, expiration date | Mar. 31, 2037 | ||||
Foreign Tax Jurisdictions [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | 485 | $ 485 | |||
Tax losses subject to expiration | 167 | 167 | |||
Tax losses not subject to expiration | 318 | $ 318 | |||
Foreign Tax Jurisdictions [Member] | Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards, expiration date | Mar. 31, 2018 | ||||
Foreign Tax Jurisdictions [Member] | Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards, expiration date | Mar. 31, 2037 | ||||
State and Local [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards | $ 212.7 | $ 212.7 | |||
State and Local [Member] | Minimum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards, expiration date | Mar. 31, 2018 | ||||
State and Local [Member] | Maximum [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax loss carryforwards, expiration date | Mar. 31, 2037 | ||||
Germany [Member] | |||||
Income Tax Examination [Line Items] | |||||
Open tax year for examination by tax jurisdictions | Fiscal 2011 - Fiscal 2016 | ||||
Italy [Member] | |||||
Income Tax Examination [Line Items] | |||||
Open tax year for examination by tax jurisdictions | Calendar 2011 - Fiscal 2016 | ||||
United States [Member] | |||||
Income Tax Examination [Line Items] | |||||
Open tax year for examination by tax jurisdictions | Fiscal 2014 - Fiscal 2016 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |||||||||||
Basic [Abstract] | |||||||||||||||||||||
Earnings (loss) from continuing operations | $ 8.1 | [1] | $ 1.9 | [1] | $ (4) | [1] | $ 8.9 | [1] | $ 7.8 | [2] | $ 8.2 | [2] | $ (22.5) | [2] | $ 5.5 | [2] | $ 14.9 | [1] | $ (1) | [2] | $ 22.2 |
Less: Net earnings attributable to noncontrolling interest | (0.7) | (0.6) | (1) | ||||||||||||||||||
Less: Undistributed earnings attributable to unvested shares | (0.2) | 0 | (0.2) | ||||||||||||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 14 | (1.6) | 21 | ||||||||||||||||||
Earnings from discontinued operations, net of income taxes | 0 | 0 | 0.6 | ||||||||||||||||||
Net earnings (loss) available to Modine | $ 14 | $ (1.6) | $ 21.6 | ||||||||||||||||||
Weighted-average shares outstanding - basic (in shares) | 47.8 | 47.3 | 47.2 | ||||||||||||||||||
Basic Earnings Per Share [Abstract] | |||||||||||||||||||||
Earnings (loss) per share - continuing operations (in dollars per share) | $ 0.29 | $ (0.03) | $ 0.45 | ||||||||||||||||||
Earnings per share - discontinued operations (in dollars per share) | 0 | 0 | 0.01 | ||||||||||||||||||
Net earnings (loss) per share - basic (in dollars per share) | $ 0.16 | $ 0.04 | $ (0.09) | $ 0.18 | $ 0.16 | $ 0.17 | $ (0.47) | $ 0.11 | $ 0.29 | $ (0.03) | $ 0.46 | ||||||||||
Diluted [Abstract] | |||||||||||||||||||||
Earnings (loss) from continuing operations | $ 8.1 | [1] | $ 1.9 | [1] | $ (4) | [1] | $ 8.9 | [1] | $ 7.8 | [2] | $ 8.2 | [2] | $ (22.5) | [2] | $ 5.5 | [2] | $ 14.9 | [1] | $ (1) | [2] | $ 22.2 |
Less: Net earnings attributable to noncontrolling interest | (0.7) | (0.6) | (1) | ||||||||||||||||||
Less: Undistributed earnings attributable to unvested shares | (0.1) | 0 | (0.2) | ||||||||||||||||||
Earnings (loss) from continuing operations available to Modine shareholders | 14.1 | (1.6) | 21 | ||||||||||||||||||
Earnings from discontinued operations, net of income taxes | 0 | 0 | 0.6 | ||||||||||||||||||
Net earnings (loss) available to Modine shareholders | $ 14.1 | $ (1.6) | $ 21.6 | ||||||||||||||||||
Weighted-average shares outstanding - basic (in shares) | 47.8 | 47.3 | 47.2 | ||||||||||||||||||
Effect of dilutive securities (in shares) | 0.5 | 0 | 0.6 | ||||||||||||||||||
Weighted-average shares outstanding - diluted (in shares) | 48.3 | 47.3 | 47.8 | ||||||||||||||||||
Diluted Earnings Per Share [Abstract] | |||||||||||||||||||||
Earnings (loss) per share - continuing operations (in dollars per share) | $ 0.29 | $ (0.03) | $ 0.44 | ||||||||||||||||||
Earnings per share - discontinued operations (in dollars per share) | 0 | 0 | 0.01 | ||||||||||||||||||
Net earnings (loss) per share - diluted (in dollars per share) | $ 0.16 | $ 0.04 | $ (0.09) | $ 0.18 | $ 0.16 | $ 0.17 | $ (0.47) | $ 0.11 | $ 0.29 | $ (0.03) | $ 0.45 | ||||||||||
Potential dilutive securities (in shares) | 0.4 | ||||||||||||||||||||
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) | 0.8 | 0.8 | 0.6 | ||||||||||||||||||
[1] | During fiscal 2017, restructuring expenses totaled $2.3 million, $2.1 million, $1.6 million, and $4.9 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 5). During fiscal 2017, the Company sold two previously-closed manufacturing facilities in its Americas segment and a facility in its Europe segment and recognized net gains totaling $1.2 million and $0.8 million in the quarters ended September 30, 2016 and March 31, 2017, respectively. During fiscal 2017, acquisition- and integration-related costs totaled $1.4 million, $3.0 million, $7.2 million, and $3.2 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 2). During the fourth quarter of fiscal 2017, the Company recorded a deferred tax valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded income tax expense of $2.0 million (see Note 7). | ||||||||||||||||||||
[2] | During fiscal 2016, restructuring expenses totaled $2.6 million, $1.0 million, $1.6 million, and $11.4 million for the quarters ended June 30, 2015, September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 5). During the fourth quarter of fiscal 2016, the Company recorded a $9.9 million asset impairment charge related to a manufacturing facility in Germany (see Note 5). During fiscal 2016, non-cash pension settlement losses totaled $39.2 million, $1.1 million, and $1.8 million for the quarters ended September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 16). During the fourth quarter of fiscal 2016, the Company recorded a $9.5 million gain related to an insurance settlement for equipment losses resulting from the Airedale fire. Also during the fourth quarter of fiscal 2016, the Company reversed a deferred tax asset valuation allowance, and, as a result, recorded an income tax benefit related to a foreign tax jurisdiction of $3.0 million (see Note 7). |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Inventories [Abstract] | ||
Raw materials and work in process | $ 127.7 | $ 79.5 |
Finished goods | 40.8 | 31.5 |
Total inventories | $ 168.5 | $ 111 |
Property, Plant and Equipment60
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 1,177.6 | $ 1,043.6 | |
Less: accumulated depreciation | (718.6) | (705) | |
Net property, plant and equipment | 459 | 338.6 | |
Depreciation expense | 54.2 | 48.6 | $ 50 |
Loss from disposition of property, plant and equipment | (0.4) | (0.4) | $ (1.1) |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | 18.9 | 7.2 | |
Buildings and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Gross property, plant and equipment | $ 255.6 | 221.3 | |
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 | $ 755.5 | 694.3 | |
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 | $ 92.5 | 84.1 | |
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 | $ 55.1 | $ 36.7 |
Investment in Affiliate (Detail
Investment in Affiliate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent owned | 100.00% | ||
Equity in earnings of non-consolidated affiliate | $ 0.1 | $ 0.1 | $ 0.6 |
Nikkei Heat Exchanger Company, Ltd. [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, percent owned | 50.00% | ||
Equity method investment | $ 3.3 | 3.2 | |
Equity in earnings of non-consolidated affiliate | $ 0.1 | $ 0.1 | $ 0.6 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Amortized intangible assets [Abstract] | |||
Gross carrying value | $ 145.9 | $ 16.4 | |
Accumulated amortization | (11.8) | (8.2) | |
Net intangible assets | 134.1 | 8.2 | |
Amortization expense | 4.1 | 1.6 | $ 1.6 |
Estimated future amortization expense [Abstract] | |||
2,018 | 9.4 | ||
2,019 | 9.2 | ||
2,020 | 9.1 | ||
2,021 | 8.5 | ||
2,022 | 7.4 | ||
2023 & Beyond | 90.5 | ||
Customer Relationships [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 60.5 | 2 | |
Accumulated amortization | (1.7) | (0.4) | |
Net intangible assets | 58.8 | 1.6 | |
Trade Names [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 58.4 | 8.9 | |
Accumulated amortization | (7.2) | (6.3) | |
Net intangible assets | 51.2 | 2.6 | |
Acquired Technology [Member] | |||
Amortized intangible assets [Abstract] | |||
Gross carrying value | 27 | 5.5 | |
Accumulated amortization | (2.9) | (1.5) | |
Net intangible assets | $ 24.1 | $ 4 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 15.8 | $ 16.2 |
Acquired Goodwill | 150.6 | |
Effect of exchange rate changes | (1.3) | (0.4) |
Ending balance | 165.1 | 15.8 |
Asia [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0.5 | 0.5 |
Acquired Goodwill | 0 | |
Effect of exchange rate changes | 0 | 0 |
Ending balance | 0.5 | 0.5 |
BHVAC [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 15.3 | 15.7 |
Acquired Goodwill | 0 | |
Effect of exchange rate changes | (1.6) | (0.4) |
Ending balance | 13.7 | 15.3 |
CIS [Member] | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | 0 |
Acquired Goodwill | 150.6 | |
Effect of exchange rate changes | 0.3 | 0 |
Ending balance | 150.9 | 0 |
Americas and Europe [Member] | ||
Goodwill [Roll Forward] | ||
Accumulated impairment losses | $ 31.6 | $ 8.7 |
Product Warranties, Operating64
Product Warranties, Operating Leases, and Other Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Changes in accrued warranty costs [Roll Forward] | |||
Beginning balance | $ 8.3 | $ 10.4 | |
Warranties recorded at time of sale | 5.2 | 5.7 | |
Adjustments to pre-existing warranties | 0.3 | (1.1) | |
Additions due to acquisition | 4.1 | 0 | |
Settlements | (7.6) | (6.7) | |
Effect of exchange rate changes | (0.3) | 0 | |
Ending balance | 10 | 8.3 | $ 10.4 |
Rental expense | 12.8 | $ 11.9 | $ 11.5 |
Future minimum rental commitments under non-cancelable operating leases [Abstract] | |||
2,018 | 12.2 | ||
2,019 | 10.1 | ||
2,020 | 9.1 | ||
2,021 | 7.8 | ||
2,022 | 5.4 | ||
2023 and beyond | 24.7 | ||
Total future minimum rental commitments | 69.3 | ||
Other Commitments [Line Items] | |||
Capital expenditure commitments | $ 18.1 | ||
Minimum [Member] | |||
Product Warranty Liability [Line Items] | |||
Product warranty period | 1 year | ||
Other Commitments [Line Items] | |||
Indemnification period | 1 year | ||
Maximum [Member] | |||
Product Warranty Liability [Line Items] | |||
Product warranty period | 5 years | ||
Other Commitments [Line Items] | |||
Indemnification period | 15 years |
Indebtedness (Details)
Indebtedness (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 444.2 | $ 134 | |
Less: current portion | (31.8) | (8.5) | |
Less: unamortized debt issuance costs | (6.7) | 0 | |
Total long-term debt | 405.7 | 125.5 | |
Maturities of long term debt and capital lease obligations [Abstract] | |||
2,018 | 31.8 | ||
2,019 | 38.6 | ||
2,020 | 43.8 | ||
2,021 | 98.3 | ||
2,022 | 184.1 | ||
2023 & beyond | 47.6 | ||
Total debt | 444.2 | 134 | |
Short-term debt | 73.4 | 28.6 | |
Long-term debt, fair value | 170 | 139 | |
Credit Facility [Abstract] | |||
Available for future borrowings | 152.6 | ||
Revolving Credit Facility [Member] | |||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Short-term debt | $ 40.4 | ||
Revolving Credit Facility [Member] | Weighted Average [Member] | |||
Credit Facility [Abstract] | |||
Basis spread on variable rate | 3.00% | ||
Domestic Revolving Credit Facility [Member] | |||
Credit Facility [Abstract] | |||
Available for future borrowings | $ 132.6 | ||
Letters of credit outstanding | 2 | ||
Foreign Credit Agreements [Member] | |||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Short-term debt | 33 | 28.6 | |
Credit Facility [Abstract] | |||
Available for future borrowings | 20 | ||
Multi Currency Revolving Credit Facility [Member] | |||
Credit Facility [Abstract] | |||
Maximum borrowing capacity | $ 175 | ||
Expiration date | Nov. 30, 2021 | ||
Term Loan [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | $ 268.9 | 0 | |
Fiscal year of maturity | Mar. 31, 2022 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 268.9 | 0 | |
Term Loan [Member] | Luvata HTS [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Credit Facility [Abstract] | |||
Basis spread on variable rate | 1.375% | ||
Term Loan [Member] | Luvata HTS [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Credit Facility [Abstract] | |||
Basis spread on variable rate | 2.50% | ||
6.8% Senior Notes [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Interest rate percentage | 6.80% | ||
Total debt | $ 117 | 125 | |
Fiscal year of maturity | Mar. 31, 2021 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 117 | 125 | |
5.8% Senior Notes [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Interest rate percentage | 5.80% | ||
Total debt | $ 50 | 0 | |
Fiscal year of maturity | Mar. 31, 2027 | ||
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | $ 50 | 0 | |
Other [Member] | |||
Long-term Debt and Capital Lease Obligations [Abstract] | |||
Total debt | [1] | $ 8.3 | 9 |
Fiscal year of maturity | [1] | Mar. 31, 2032 | |
Maturities of long term debt and capital lease obligations [Abstract] | |||
Total debt | [1] | $ 8.3 | $ 9 |
[1] | Other long-term debt includes capital lease obligations and other financing-type obligations. |
Pension and Employee Benefit 66
Pension and Employee Benefit Plans (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($)Participant | Mar. 31, 2015USD ($) | ||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Portion of employee contribution matched | 50.00% | 50.00% | 50.00% | ||||
Defined contribution plan cost recognized | $ 4.7 | $ 4.6 | $ 5.9 | ||||
Components of net periodic benefit cost [Abstract] | |||||||
Settlements | $ (1.8) | $ (1.1) | $ (39.2) | 42.1 | |||
Other changes in benefit obligation recognized in other comprehensive loss (income): | |||||||
Amortization of net actuarial loss | [1] | $ 5.2 | $ 48.3 | ||||
Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Contribution by employee | 5.00% | 5.00% | 5.00% | ||||
Pension Plans [Member] | |||||||
Change in benefit obligation [Roll Forward] | |||||||
Benefit obligation at beginning of year | $ 261 | $ 328.2 | |||||
Service cost | 0.6 | 0.6 | $ 0.5 | ||||
Interest cost | 9.8 | 11.2 | 13 | ||||
Actuarial gain | (0.5) | (2.8) | |||||
Benefits paid | [2] | (19.8) | (78.1) | ||||
Acquired obligations | [3] | 20.3 | 0 | ||||
Effect of exchange rate changes | (1.6) | 1.9 | |||||
Benefit obligation at end of year | 261 | 269.8 | 261 | 328.2 | |||
Change in plan assets [Roll Forward] | |||||||
Fair value of plan assets at beginning of year | 141.5 | 217 | |||||
Actual return on plan assets | 11 | (5.3) | |||||
Benefits paid | [2] | (19.8) | (78.1) | ||||
Employer contributions | 9.5 | 7.9 | |||||
Acquired plan assets | [3] | 6 | 0 | ||||
Fair value of plan assets at end of year | 141.5 | 148.2 | 141.5 | 217 | |||
Funded status at end of year | (119.5) | (121.6) | (119.5) | ||||
Amounts recognized in the consolidated balance sheets [Abstract] | |||||||
Current liability | (0.9) | (2.2) | (0.9) | ||||
Noncurrent liability | (118.6) | (119.4) | (118.6) | ||||
Total liability | (119.5) | (121.6) | (119.5) | ||||
Pension plans with accumulated benefit obligations in excess of plan assets [Abstract] | |||||||
Accumulated benefit obligation | 257.9 | 266.8 | 257.9 | ||||
Amounts recognized in accumulated other comprehensive loss [Abstract] | |||||||
Net actuarial loss (gain) | 162 | 156.8 | 162 | ||||
Components of net periodic benefit cost [Abstract] | |||||||
Service cost | 0.6 | 0.6 | 0.5 | ||||
Interest cost | 9.8 | 11.2 | 13 | ||||
Expected return on plan assets | (12.3) | (14.9) | (16.7) | ||||
Amortization of net actuarial loss | 5.6 | 6.4 | 5.5 | ||||
Settlements | [4] | 0 | 42.1 | 0 | |||
Net periodic benefit cost | 3.7 | 45.4 | 2.3 | ||||
Other changes in benefit obligation recognized in other comprehensive loss (income): | |||||||
Net actuarial loss | 1 | 17.5 | 46.4 | ||||
Amortization of net actuarial loss | [4] | (5.6) | (48.5) | (5.5) | |||
Total recognized in other comprehensive (income) loss | (4.6) | (31) | 40.9 | ||||
Reversal of amortization items [Abstract] | |||||||
Estimated net actuarial loss that will be amortized | (5.6) | ||||||
Estimated future benefit payments [Abstract] | |||||||
Anticipated contributions for 2018 fiscal year | 13.1 | ||||||
2,018 | 17.1 | ||||||
2,019 | 16.4 | ||||||
2,020 | 17 | ||||||
2,021 | 17.1 | ||||||
2,022 | 17.6 | ||||||
2023-2027 | 90.4 | ||||||
Postretirement Plans [Member] | |||||||
Components of net periodic benefit cost [Abstract] | |||||||
Net periodic benefit cost | 0.3 | 0.3 | 0.1 | ||||
U.S. Pension Plans [Member] | |||||||
Change in plan assets [Roll Forward] | |||||||
Fair value of plan assets at beginning of year | [5] | 141.5 | |||||
Employer contributions | 8.1 | 6.7 | $ 5.9 | ||||
Fair value of plan assets at end of year | [5] | $ 141.5 | $ 148.2 | 141.5 | |||
Components of net periodic benefit cost [Abstract] | |||||||
Settlements | $ 42.1 | ||||||
Voluntary Lump Sum Payout Program [Abstract] | |||||||
Number of participants accepted lump-sum payout program | Participant | 2,000 | ||||||
Amount paid for settlement lump-sum payout program | $ 65.3 | ||||||
Weighted-average assumptions used in calculating benefit obligation [Abstract] | |||||||
Discount rate | 4.10% | 4.10% | 4.10% | ||||
Weighted-average assumptions used in calculating plan cost [Abstract] | |||||||
Discount rate used to determine cost of pension plan | 4.10% | 4.30% | 4.70% | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||||
Target allocation | 100.00% | ||||||
Plan assets | 100.00% | 100.00% | 100.00% | ||||
Expected return on plan assets | 8.00% | 8.00% | 8.00% | ||||
Expected return on plan assets for next fiscal year | 7.50% | ||||||
U.S. Pension Plans [Member] | Selling, General and Administrative Expenses [Member] | |||||||
Components of net periodic benefit cost [Abstract] | |||||||
Settlements | $ 33.3 | ||||||
U.S. Pension Plans [Member] | Cost of Sales [Member] | |||||||
Components of net periodic benefit cost [Abstract] | |||||||
Settlements | $ 8.8 | ||||||
U.S. Pension Plans [Member] | Luvata HTS [Member] | |||||||
Change in plan assets [Roll Forward] | |||||||
Funded status at end of year | $ 14.3 | ||||||
U.S. Pension Plans [Member] | Equity Securities [Member] | |||||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||||
Target allocation | 60.00% | ||||||
Plan assets | 56.00% | 58.00% | 56.00% | ||||
U.S. Pension Plans [Member] | Debt Securities [Member] | |||||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||||
Target allocation | 38.00% | ||||||
Plan assets | 36.00% | 38.00% | 36.00% | ||||
U.S. Pension Plans [Member] | Alternative Assets [Member] | |||||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||||
Target allocation | 0.00% | ||||||
Plan assets | 4.00% | 0.00% | 4.00% | ||||
U.S. Pension Plans [Member] | Cash [Member] | |||||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||||
Target allocation | 2.00% | ||||||
Plan assets | 4.00% | 4.00% | 4.00% | ||||
Foreign Pension Plans [Member] | |||||||
Weighted-average assumptions used in calculating benefit obligation [Abstract] | |||||||
Discount rate | 1.80% | 1.70% | 1.80% | ||||
Weighted-average assumptions used in calculating plan cost [Abstract] | |||||||
Discount rate used to determine cost of pension plan | 1.70% | 1.30% | 3.00% | ||||
[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 16 for additional information about the Company's pension plans. | ||||||
[2] | In fiscal 2016, $65.3 million was paid from plan assets in connection with lump-sum payouts. | ||||||
[3] | As a result of its acquisition of Luvata HTS, the Company acquired pension plans in Italy, Austria and the U.S. See Note 2 for additional information. | ||||||
[4] | During fiscal 2016, in connection with lump-sum payouts to pension plan participants, the Company recorded $42.1 million of settlement losses, which were previously recorded in accumulated other comprehensive loss. | ||||||
[5] | As a practical expedient, the Company valued a collective trust fund using its net asset value per unit, and therefore, has not classified this investment within the fair value hierarchy. |
Derivative Instruments (Details
Derivative Instruments (Details) - Not Designated as Hedges [Member] - USD ($) $ in Millions | Mar. 31, 2017 | Mar. 31, 2016 |
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | ||
Derivative instruments [Abstract] | ||
Derivative asset, fair value, net | $ 0.2 | $ 0.1 |
Commodity Derivatives [Member] | Other Current Assets [Member] | ||
Derivative instruments [Abstract] | ||
Derivative asset, fair value, net | 0.7 | 0 |
Commodity Derivatives [Member] | Other Current Liabilities [Member] | ||
Derivative instruments [Abstract] | ||
Derivative liability, fair value, net | $ 0 | $ 0.1 |
Derivative Instruments, (Gain)
Derivative Instruments, (Gain) Loss by Hedging Relationship, by Income Statement Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments, (Gain) Loss [Line Items] | |||
Total gain (loss) recognized in continuing operations | $ 1.8 | $ (0.1) | $ (1.3) |
Cost of Sales [Member] | Commodity Derivatives [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Total gain (loss) recognized in continuing operations | 0.5 | (0.7) | (0.2) |
Other Income (Expense) - Net [Member] | Foreign Exchange Contracts [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Total gain (loss) recognized in continuing operations | $ 1.3 | $ 0.6 | $ (1.1) |
Contingencies and Litigation (D
Contingencies and Litigation (Details) BRL in Millions, $ in Millions | 12 Months Ended | ||||
Mar. 31, 2017USD ($)CustomerSite | Mar. 31, 2017BRLCustomerSite | Mar. 31, 2016USD ($)Customer | Mar. 31, 2015Customer | Mar. 31, 2016BRL | |
Concentration Risk [Line Items] | |||||
Number of major customers | 2 | 2 | 2 | 2 | |
Number of top customers | 10 | ||||
CADE [Member] | |||||
Legal Matters [Abstract] | |||||
Minimum period of alleged violations of antitrust regulations | 7 years | 7 years | |||
Litigation settlement amount | $ 4.7 | BRL 15 | |||
CADE [Member] | Minimum [Member] | |||||
Legal Matters [Abstract] | |||||
Brazil legal matter - accrual | $ 2.8 | BRL 10 | |||
CADE [Member] | SG&A Expenses [Member] | |||||
Legal Matters [Abstract] | |||||
Brazil legal matter - expense | 1.6 | BRL 5 | |||
Closed and Sold Manufacturing Facility [Member] | |||||
Site Contingency [Line Items] | |||||
Reserves for environmental matters | $ | $ 16.8 | $ 5.1 | |||
Closed and Sold Manufacturing Facility [Member] | United States [Member] | |||||
Site Contingency [Line Items] | |||||
Number of sites remediation considered for potentially responsible party | Site | 3 | 3 | |||
Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 54.00% | 54.00% | 63.00% | 63.00% | |
Credit Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk, percentage | 35.00% | 35.00% | 45.00% |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning balance | $ 376.2 | ||
Other comprehensive income (loss) before reclassifications | (11.1) | $ (11.9) | |
Reclassifications [Abstract] | |||
Reclassifications for amortization of unrecognized net loss | [1] | 5.2 | 48.3 |
Amortization of unrecognized prior service credit | [1] | (0.2) | |
Income taxes | (1.7) | (11.8) | |
Total other comprehensive income (loss) | (7.6) | 24.4 | |
Ending balance | 414 | 376.2 | |
Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning balance | (174.2) | (198.6) | |
Reclassifications [Abstract] | |||
Ending balance | (181.8) | (174.2) | |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning balance | (36) | (40.7) | |
Other comprehensive income (loss) before reclassifications | (10.8) | 4.7 | |
Reclassifications [Abstract] | |||
Reclassifications for amortization of unrecognized net loss | [1] | 0 | 0 |
Amortization of unrecognized prior service credit | [1] | 0 | |
Income taxes | 0 | 0 | |
Total other comprehensive income (loss) | (10.8) | 4.7 | |
Ending balance | (46.8) | (36) | |
Defined Benefit Plans [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Beginning balance | (138.2) | (157.9) | |
Other comprehensive income (loss) before reclassifications | (0.3) | (16.6) | |
Reclassifications [Abstract] | |||
Reclassifications for amortization of unrecognized net loss | [1] | 5.2 | 48.3 |
Amortization of unrecognized prior service credit | [1] | (0.2) | |
Income taxes | (1.7) | (11.8) | |
Total other comprehensive income (loss) | 3.2 | 19.7 | |
Ending balance | $ (135) | $ (138.2) | |
[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 16 for additional information about the Company's pension plans. |
Segment and Geographic Inform71
Segment and Geographic Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | $ 488.3 | $ 349.8 | $ 317.7 | $ 347.2 | $ 343.7 | $ 328.7 | $ 334 | $ 346.1 | $ 1,503 | $ 1,352.5 | $ 1,496.4 | |
Gross profit | 84.9 | 58.7 | 47.7 | 62 | 62.2 | 58.6 | 45.7 | $ 57 | $ 253.3 | $ 223.5 | $ 246.5 | |
Gross profit (% of sales) | 16.90% | 16.50% | 16.50% | |||||||||
Operating income (loss) | $ 39.4 | $ (7.5) | $ 52.7 | |||||||||
Total assets | 1,449.5 | 920.9 | 1,449.5 | 920.9 | ||||||||
Non tax gain (loss) related to pension settlement | 1.8 | $ 1.1 | $ 39.2 | (42.1) | ||||||||
Acquisition and integration related costs | 3.2 | $ 7.2 | $ 3 | $ 1.4 | 14.8 | |||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total capital expenditures | 64.4 | 62.8 | 58.3 | |||||||||
Total depreciation and amortization expense | 58.3 | 50.2 | 51.6 | |||||||||
Total property, plant and equipment | 459 | 338.6 | 459 | 338.6 | ||||||||
Pension [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Non tax gain (loss) related to pension settlement | (42.1) | |||||||||||
Pension [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Non tax gain (loss) related to pension settlement | (33.3) | |||||||||||
Pension [Member] | Cost of Sales [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Non tax gain (loss) related to pension settlement | (8.8) | |||||||||||
Luvata HTS [Member] | Selling, General and Administrative Expenses [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Acquisition and integration related costs | 14.8 | |||||||||||
Operating Segments [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 1,519.1 | 1,370 | 1,512.6 | |||||||||
Gross profit | $ 260 | $ 234.6 | $ 245.2 | |||||||||
Gross profit (% of sales) | 17.10% | 17.10% | 16.20% | |||||||||
Operating income (loss) | $ 92.1 | $ 64.2 | $ 78.5 | |||||||||
Operating Segments [Member] | Americas [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 534 | 585.5 | 666.9 | |||||||||
Gross profit | $ 86.6 | $ 100.1 | $ 109.1 | |||||||||
Gross profit (% of sales) | 16.20% | 17.10% | 16.30% | |||||||||
Operating income (loss) | $ 26.7 | $ 36.2 | $ 33.4 | |||||||||
Total assets | 282.9 | 267.2 | 282.9 | 267.2 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total capital expenditures | 26.3 | 26.7 | 30.2 | |||||||||
Total depreciation and amortization expense | 22.7 | 22.1 | 21.3 | |||||||||
Operating Segments [Member] | Europe [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 524.3 | 524.1 | 578.2 | |||||||||
Gross profit | $ 80.9 | $ 68.1 | $ 68.7 | |||||||||
Gross profit (% of sales) | 15.40% | 13.00% | 11.90% | |||||||||
Operating income (loss) | $ 37.1 | $ 13.3 | $ 25.7 | |||||||||
Total assets | 269.4 | 301.9 | 269.4 | 301.9 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total capital expenditures | 24.7 | 24.8 | 21.5 | |||||||||
Total depreciation and amortization expense | 16.5 | 18 | 19.8 | |||||||||
Operating Segments [Member] | Asia [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 111.5 | 79 | 81.2 | |||||||||
Gross profit | $ 18.7 | $ 12.2 | $ 11.5 | |||||||||
Gross profit (% of sales) | 16.80% | 15.50% | 14.20% | |||||||||
Operating income (loss) | $ 7.7 | $ 0.8 | $ 0.3 | |||||||||
Total assets | 111.3 | 104 | 111.3 | 104 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total capital expenditures | 8.5 | 6.2 | 3.8 | |||||||||
Total depreciation and amortization expense | 7 | 6.5 | 7.2 | |||||||||
Operating Segments [Member] | CIS [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 177.7 | 0 | 0 | |||||||||
Gross profit | $ 26 | $ 0 | $ 0 | |||||||||
Gross profit (% of sales) | 14.60% | 0.00% | 0.00% | |||||||||
Operating income (loss) | $ 7.5 | $ 0 | $ 0 | |||||||||
Total assets | 576 | 0 | 576 | 0 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total capital expenditures | 3.4 | 0 | 0 | |||||||||
Total depreciation and amortization expense | 7.9 | 0 | 0 | |||||||||
Operating Segments [Member] | BHVAC [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 171.6 | 181.4 | 186.3 | |||||||||
Gross profit | $ 47.8 | $ 54.2 | $ 55.9 | |||||||||
Gross profit (% of sales) | 27.80% | 29.90% | 30.00% | |||||||||
Operating income (loss) | $ 13.1 | $ 13.9 | $ 19.1 | |||||||||
Total assets | 85.2 | 99 | 85.2 | 99 | ||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total capital expenditures | 1.5 | 5.1 | 2.8 | |||||||||
Total depreciation and amortization expense | 4.2 | 3.6 | 3.3 | |||||||||
Corporate and Eliminations [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | (16.1) | (17.5) | (16.2) | |||||||||
Gross profit | [1] | $ (6.7) | $ (11.1) | $ 1.3 | ||||||||
Gross profit (% of sales) | [1] | 0.00% | 0.00% | 0.00% | ||||||||
Operating income (loss) | [1] | $ (52.7) | $ (71.7) | $ (25.8) | ||||||||
Total assets | 124.7 | 148.8 | 124.7 | 148.8 | ||||||||
Corporate and Eliminations [Member] | Cost of Sales [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Inventory step-up cost | 4.3 | |||||||||||
Reportable Geographical Components [Member] | United States [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 657.8 | 627.6 | 669.3 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | 124.7 | 92.5 | 124.7 | 92.5 | ||||||||
Reportable Geographical Components [Member] | Hungary [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 145.6 | 145.9 | 161 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | 37.7 | 31.4 | 37.7 | 31.4 | ||||||||
Reportable Geographical Components [Member] | Germany [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 130.1 | 155.3 | 193.8 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | 28.9 | 32.1 | 28.9 | 32.1 | ||||||||
Reportable Geographical Components [Member] | Austria [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 125.2 | 113.1 | 118.7 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | 44.3 | 44.2 | 44.3 | 44.2 | ||||||||
Reportable Geographical Components [Member] | Italy [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 94.4 | 44.1 | 40.6 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | 55.8 | 20.3 | 55.8 | 20.3 | ||||||||
Reportable Geographical Components [Member] | Mexico [Member] | ||||||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | 47 | 30.9 | 47 | 30.9 | ||||||||
Reportable Geographical Components [Member] | China [Member] | ||||||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | 40 | 33.6 | 40 | 33.6 | ||||||||
Reportable Geographical Components [Member] | Other [Member] | ||||||||||||
Net sales, gross profit, operating income and total assets by segment [Abstract] | ||||||||||||
Net sales | 349.9 | 266.5 | $ 313 | |||||||||
Segment Reporting Information, Additional Information [Abstract] | ||||||||||||
Total property, plant and equipment | $ 80.6 | $ 53.6 | $ 80.6 | $ 53.6 | ||||||||
[1] | During fiscal 2017, the Company recorded $14.8 million of costs incurred directly related to the acquisition and integration of Luvata HTS within SG&A expenses at Corporate. In addition, as a result of purchase accounting for the Luvata HTS acquisition, the Company wrote up acquired inventory to its estimated fair value and charged the write-up to cost of sales as the underlying inventory was sold. The Company recorded $4.3 million in cost of sales related to this inventory step-up at Corporate, as the impact of this purchase accounting adjustment is excluded from the Company's measure of segment operating performance. During fiscal 2016, the Company recorded pension settlement losses of $42.1 million at Corporate, within SG&A expenses ($33.3 million) and cost of sales ($8.8 million). See Note 16 for additional information about the Company's pension plans. |
Segment and Geographic Inform72
Segment and Geographic Information, Net sales by End Market (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | |
Revenue from External Customer [Line Items] | |||
Net sales | $ 1,503 | $ 1,352.5 | $ 1,496.4 |
Automotive [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | 461 | 396.8 | 401.8 |
Commercial Vehicle [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | 382.5 | 459.8 | 512.5 |
Off-Highway [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | 202.8 | 206.2 | 274.6 |
HVAC&R [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | 400.9 | 232.1 | 229.6 |
Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Net sales | $ 55.8 | $ 57.6 | $ 77.9 |
Quarterly Financial Data (Una73
Quarterly Financial Data (Unaudited) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2017USD ($)Facility$ / shares | Mar. 31, 2016USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | ||||||||||||
Selected quarterly financial information [Abstract] | ||||||||||||||||||||||
Net sales | $ 488.3 | $ 349.8 | $ 317.7 | $ 347.2 | $ 343.7 | $ 328.7 | $ 334 | $ 346.1 | $ 1,503 | $ 1,352.5 | $ 1,496.4 | |||||||||||
Gross profit | 84.9 | 58.7 | 47.7 | 62 | 62.2 | 58.6 | 45.7 | 57 | 253.3 | 223.5 | 246.5 | |||||||||||
Earnings (loss) from continuing operations | 8.1 | [1] | 1.9 | [1] | (4) | [1] | 8.9 | [1] | 7.8 | [2] | 8.2 | [2] | (22.5) | [2] | 5.5 | [2] | 14.9 | [1] | (1) | [2] | 22.2 | |
Net earnings (loss) attributable to Modine | $ 8 | [1] | $ 1.7 | [1] | $ (4.1) | [1] | $ 8.6 | [1] | $ 7.6 | [2] | $ 8.2 | [2] | $ (22.5) | [2] | $ 5.1 | [2] | $ 14.2 | [1] | $ (1.6) | [2] | $ 21.8 | |
Net earnings (loss) per share attributable to Modine shareholders: | ||||||||||||||||||||||
Basic (in dollars per share) | $ / shares | $ 0.16 | $ 0.04 | $ (0.09) | $ 0.18 | $ 0.16 | $ 0.17 | $ (0.47) | $ 0.11 | $ 0.29 | $ (0.03) | $ 0.46 | |||||||||||
Diluted (in dollars per share) | $ / shares | $ 0.16 | $ 0.04 | $ (0.09) | $ 0.18 | $ 0.16 | $ 0.17 | $ (0.47) | $ 0.11 | $ 0.29 | $ (0.03) | $ 0.45 | |||||||||||
Restructuring expenses | $ 4.9 | $ 1.6 | $ 2.1 | $ 2.3 | $ 11.4 | $ 1.6 | $ 1 | $ 2.6 | $ 10.9 | $ 16.6 | $ 4.7 | |||||||||||
Gain on sale of assets | 0.8 | 1.2 | 3.2 | 2 | 0 | 3.2 | ||||||||||||||||
Acquisition- and integration-related costs | 3.2 | $ 7.2 | $ 3 | $ 1.4 | 14.8 | |||||||||||||||||
Impairment charges | 9.9 | 0 | 9.9 | 7.8 | ||||||||||||||||||
Non tax gain (loss) related to pension settlement | 1.8 | $ 1.1 | $ 39.2 | (42.1) | ||||||||||||||||||
Gain (loss) on insurance settlement | 9.5 | $ 0 | [3] | 9.5 | [3] | $ 0 | [3] | |||||||||||||||
Deferred tax asset, valuation allowance | $ 2 | $ 3 | $ 3 | |||||||||||||||||||
Number of closed manufacturing facilities sold | Facility | 2 | |||||||||||||||||||||
[1] | During fiscal 2017, restructuring expenses totaled $2.3 million, $2.1 million, $1.6 million, and $4.9 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 5). During fiscal 2017, the Company sold two previously-closed manufacturing facilities in its Americas segment and a facility in its Europe segment and recognized net gains totaling $1.2 million and $0.8 million in the quarters ended September 30, 2016 and March 31, 2017, respectively. During fiscal 2017, acquisition- and integration-related costs totaled $1.4 million, $3.0 million, $7.2 million, and $3.2 million for the quarters ended June 30, 2016, September 30, 2016, December 31, 2016, and March 31, 2017, respectively (see Note 2). During the fourth quarter of fiscal 2017, the Company recorded a deferred tax valuation allowance related to a foreign tax jurisdiction, and, as a result, recorded income tax expense of $2.0 million (see Note 7). | |||||||||||||||||||||
[2] | During fiscal 2016, restructuring expenses totaled $2.6 million, $1.0 million, $1.6 million, and $11.4 million for the quarters ended June 30, 2015, September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 5). During the fourth quarter of fiscal 2016, the Company recorded a $9.9 million asset impairment charge related to a manufacturing facility in Germany (see Note 5). During fiscal 2016, non-cash pension settlement losses totaled $39.2 million, $1.1 million, and $1.8 million for the quarters ended September 30, 2015, December 31, 2015, and March 31, 2016, respectively (see Note 16). During the fourth quarter of fiscal 2016, the Company recorded a $9.5 million gain related to an insurance settlement for equipment losses resulting from the Airedale fire. Also during the fourth quarter of fiscal 2016, the Company reversed a deferred tax asset valuation allowance, and, as a result, recorded an income tax benefit related to a foreign tax jurisdiction of $3.0 million (see Note 7). | |||||||||||||||||||||
[3] | During fiscal 2016, the Company settled an insurance claim related to machinery and equipment destroyed in a fire at its Airedale facility and recorded a gain of $9.5 million. See Note 1 for additional information. |
SCHEDULE II - VALUATION AND Q74
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Valuation Allowance for Deferred Tax Assets [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2015 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 50.8 | $ 48 | $ 61.2 | |
Additions Charged (Benefit) to Costs and Expenses | (0.3) | 1.5 | (6.8) | |
Additions Charged to Other Accounts | [1] | (0.9) | 1.3 | (6.4) |
Balance at End of Period | $ 49.6 | $ 50.8 | $ 48 | |
[1] | Foreign currency translation, increases due to the acquisition of Luvata HTS and other adjustments |