Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 31, 2023 | Jan. 26, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Current Fiscal Year End Date | --03-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 1-1373 | |
Entity Registrant Name | MODINE MANUFACTURING CO | |
Entity Central Index Key | 0000067347 | |
Entity Incorporation, State or Country Code | WI | |
Entity Tax Identification Number | 39-0482000 | |
Entity Address, Address Line One | 1500 DeKoven Avenue | |
Entity Address, City or Town | Racine | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53403 | |
City Area Code | 262 | |
Local Phone Number | 636-1200 | |
Title of 12(b) Security | Common Stock, $0.625 par value | |
Trading Symbol | MOD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,207,750 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||||
Net sales | $ 561.4 | $ 560 | $ 1,804.3 | $ 1,679.8 |
Cost of sales | 434.1 | 462.4 | 1,414 | 1,402.6 |
Gross profit | 127.3 | 97.6 | 390.3 | 277.2 |
Selling, general and administrative expenses | 68 | 58 | 198.3 | 173.1 |
Restructuring expenses | 1.6 | 0.1 | 2.1 | 2.2 |
Gain on sale of assets | (4) | 0 | (4) | 0 |
Operating income | 61.7 | 39.5 | 193.9 | 101.9 |
Interest expense | (5.8) | (5.9) | (17.8) | (14.7) |
Other expense - net | (0.5) | (0.4) | (1) | (4.1) |
Earnings before income taxes | 55.4 | 33.2 | 175.1 | 83.1 |
Provision for income taxes | (10.3) | (8.5) | (37.8) | (19.8) |
Net earnings | 45.1 | 24.7 | 137.3 | 63.3 |
Net earnings attributable to noncontrolling interest | (0.7) | (0.2) | (1.6) | (0.1) |
Net earnings attributable to Modine | $ 44.4 | $ 24.5 | $ 135.7 | $ 63.2 |
Net earnings per share attributable to Modine shareholders: | ||||
Basic (in dollars per share) | $ 0.85 | $ 0.47 | $ 2.59 | $ 1.21 |
Diluted (in dollars per share) | $ 0.83 | $ 0.46 | $ 2.55 | $ 1.2 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 52.3 | 52.3 | 52.4 | 52.2 |
Diluted (in shares) | 53.2 | 52.9 | 53.2 | 52.7 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net earnings | $ 45.1 | $ 24.7 | $ 137.3 | $ 63.3 |
Other comprehensive income (loss), net of income taxes: | ||||
Foreign currency translation | 19.4 | 23.1 | 5.9 | (24.7) |
Defined benefit plans, net of income taxes of $0.3, $0, $0.8 and $0 million | 0.1 | 1.3 | 1.7 | 4 |
Cash flow hedges, net of income taxes of $0.2, $0.2, ($0.1) and $0.2 million | 0.5 | 1.5 | (0.4) | (0.1) |
Total other comprehensive income (loss) | 20 | 25.9 | 7.2 | (20.8) |
Comprehensive income (loss) | 65.1 | 50.6 | 144.5 | 42.5 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.8) | (0.8) | (1.5) | 0.2 |
Comprehensive income (loss) attributable to Modine | $ 64.3 | $ 49.8 | $ 143 | $ 42.7 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Other comprehensive income (loss): | ||||
Defined benefit plans, tax | $ 0.3 | $ 0 | $ 0.8 | $ 0 |
Cash flow hedges, tax | $ 0.2 | $ 0.2 | $ (0.1) | $ 0.2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 149.7 | $ 67.1 |
Trade accounts receivable - net | 364.4 | 398 |
Inventories | 341.3 | 324.9 |
Other current assets | 62.8 | 56.4 |
Total current assets | 918.2 | 846.4 |
Property, plant and equipment - net | 317.3 | 314.5 |
Intangible assets - net | 78.4 | 81.1 |
Goodwill | 166.7 | 165.6 |
Deferred income taxes | 78.1 | 83.7 |
Other noncurrent assets | 92.7 | 74.6 |
Total assets | 1,651.4 | 1,565.9 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Short-term debt | 0 | 3.7 |
Long-term debt - current portion | 19.7 | 19.7 |
Accounts payable | 255.3 | 332.8 |
Accrued compensation and employee benefits | 79.6 | 89.8 |
Other current liabilities | 120.9 | 61.1 |
Total current liabilities | 475.5 | 507.1 |
Long-term debt | 313.5 | 329.3 |
Deferred income taxes | 5.8 | 4.8 |
Pensions | 31 | 40.2 |
Other noncurrent liabilities | 90.4 | 84.9 |
Total liabilities | 916.2 | 966.3 |
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 55.9 million and 55.4 million shares | 35 | 34.6 |
Additional paid-in capital | 279.6 | 270.8 |
Retained earnings | 633.2 | 497.5 |
Accumulated other comprehensive loss | (153.8) | (161.1) |
Treasury stock, at cost, 3.7 million and 3.3 million shares | (66.6) | (49) |
Total Modine shareholders' equity | 727.4 | 592.8 |
Noncontrolling interest | 7.8 | 6.8 |
Total equity | 735.2 | 599.6 |
Total liabilities and equity | $ 1,651.4 | $ 1,565.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2023 | Mar. 31, 2023 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.025 | $ 0.025 |
Preferred stock, shares authorized (in shares) | 16 | 16 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.625 | $ 0.625 |
Common stock, shares authorized (in shares) | 80 | 80 |
Common stock, shares issued (in shares) | 55.9 | 55.4 |
Treasury stock at cost (in shares) | 3.7 | 3.3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash flows from operating activities: | ||
Net earnings | $ 137.3 | $ 63.3 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 41.1 | 40.7 |
Gain on sale of assets | (4) | 0 |
Stock-based compensation expense | 7.7 | 5 |
Deferred income taxes | 4.7 | (0.9) |
Other - net | 4.7 | 4 |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 26.9 | 5.4 |
Inventories | (18.5) | (40) |
Accounts payable | (67.8) | (9.3) |
Other assets and liabilities | 42.9 | (0.3) |
Net cash provided by operating activities | 175 | 67.9 |
Cash flows from investing activities: | ||
Expenditures for property, plant and equipment | (43.8) | (35.2) |
Payments for business acquisition | (4.8) | 0 |
Proceeds from (payments for) disposition of assets | (0.6) | 0.1 |
Other - net | (5.3) | (0.1) |
Net cash used for investing activities | (54.5) | (35.2) |
Cash flows from financing activities: | ||
Borrowings of debt | 176.6 | 233.8 |
Repayments of debt | (193.6) | (226.4) |
Borrowings (repayments) on bank overdraft facilities - net | (3.7) | 4.6 |
Purchases of treasury stock under share repurchase program | (13.3) | (4.7) |
Dividend paid to noncontrolling interest | (0.5) | (0.6) |
Other - net | (2.9) | 0.7 |
Net cash (used for) provided by financing activities | (37.4) | 7.4 |
Effect of exchange rate changes on cash | 0.9 | (3.1) |
Net increase in cash, cash equivalents, and restricted cash | 84 | 37 |
Cash, cash equivalents and restricted cash - beginning of period | 67.2 | 45.4 |
Cash, cash equivalents and restricted cash - end of period | $ 151.2 | $ 82.4 |
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 Loss [Member] | Treasury Stock, at Cost [Member] | Non-controlling Interest [Member] | Total |
Balance at Mar. 31, 2022 | $ 34.2 | $ 261.6 | $ 344.4 | $ (149.5) | $ (40) | $ 7.4 | $ 458.1 |
Balance (in shares) at Mar. 31, 2022 | 54.8 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | $ 0 | 0 | 14.3 | 0 | 0 | 0 | 14.3 |
Other comprehensive income (loss) | 0 | 0 | 0 | (23.8) | 0 | (0.4) | (24.2) |
Stock options and awards | $ 0.1 | 0 | 0 | 0 | 0 | 0 | 0.1 |
Stock options and awards (in shares) | 0.1 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (1.7) | 0 | (1.7) |
Stock-based compensation expense | 0 | 1.1 | 0 | 0 | 0 | 0 | 1.1 |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | (0.6) | (0.6) |
Balance at Jun. 30, 2022 | $ 34.3 | 262.7 | 358.7 | (173.3) | (41.7) | 6.4 | 447.1 |
Balance (in shares) at Jun. 30, 2022 | 54.9 | ||||||
Balance at Mar. 31, 2022 | $ 34.2 | 261.6 | 344.4 | (149.5) | (40) | 7.4 | 458.1 |
Balance (in shares) at Mar. 31, 2022 | 54.8 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | 63.3 | ||||||
Other comprehensive income (loss) | (20.8) | ||||||
Balance at Dec. 31, 2022 | $ 34.6 | 268.8 | 407.6 | (170) | (46.1) | 6.6 | 501.5 |
Balance (in shares) at Dec. 31, 2022 | 55.3 | ||||||
Balance at Jun. 30, 2022 | $ 34.3 | 262.7 | 358.7 | (173.3) | (41.7) | 6.4 | 447.1 |
Balance (in shares) at Jun. 30, 2022 | 54.9 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | $ 0 | 0 | 24.4 | 0 | 0 | (0.1) | 24.3 |
Other comprehensive income (loss) | 0 | 0 | 0 | (22) | 0 | (0.5) | (22.5) |
Stock options and awards | $ 0.1 | 0.9 | 0 | 0 | 0 | 0 | 1 |
Stock options and awards (in shares) | 0.2 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (1.6) | 0 | (1.6) |
Stock-based compensation expense | 0 | 2.4 | 0 | 0 | 0 | 0 | 2.4 |
Balance at Sep. 30, 2022 | $ 34.4 | 266 | 383.1 | (195.3) | (43.3) | 5.8 | 450.7 |
Balance (in shares) at Sep. 30, 2022 | 55.1 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | $ 0 | 0 | 24.5 | 0 | 0 | 0.2 | 24.7 |
Other comprehensive income (loss) | 0 | 0 | 0 | 25.3 | 0 | 0.6 | 25.9 |
Stock options and awards | $ 0.2 | 1.3 | 0 | 0 | 0 | 0 | 1.5 |
Stock options and awards (in shares) | 0.2 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (2.8) | 0 | (2.8) |
Stock-based compensation expense | 0 | 1.5 | 0 | 0 | 0 | 0 | 1.5 |
Balance at Dec. 31, 2022 | $ 34.6 | 268.8 | 407.6 | (170) | (46.1) | 6.6 | 501.5 |
Balance (in shares) at Dec. 31, 2022 | 55.3 | ||||||
Balance at Mar. 31, 2023 | $ 34.6 | 270.8 | 497.5 | (161.1) | (49) | 6.8 | $ 599.6 |
Balance (in shares) at Mar. 31, 2023 | 55.4 | 55.4 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | $ 0 | 0 | 44.8 | 0 | 0 | 0.5 | $ 45.3 |
Other comprehensive income (loss) | 0 | 0 | 0 | (0.5) | 0 | (0.2) | (0.7) |
Stock options and awards | $ 0.1 | 0.4 | 0 | 0 | 0 | 0 | 0.5 |
Stock options and awards (in shares) | 0.2 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (1.2) | 0 | (1.2) |
Stock-based compensation expense | 0 | 1.5 | 0 | 0 | 0 | 0 | 1.5 |
Dividend paid to noncontrolling interest | 0 | 0 | 0 | 0 | 0 | (0.5) | (0.5) |
Balance at Jun. 30, 2023 | $ 34.7 | 272.7 | 542.3 | (161.6) | (50.2) | 6.6 | 644.5 |
Balance (in shares) at Jun. 30, 2023 | 55.6 | ||||||
Balance at Mar. 31, 2023 | $ 34.6 | 270.8 | 497.5 | (161.1) | (49) | 6.8 | $ 599.6 |
Balance (in shares) at Mar. 31, 2023 | 55.4 | 55.4 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | $ 137.3 | ||||||
Other comprehensive income (loss) | 7.2 | ||||||
Balance at Dec. 31, 2023 | $ 35 | 279.6 | 633.2 | (153.8) | (66.6) | 7.8 | $ 735.2 |
Balance (in shares) at Dec. 31, 2023 | 55.9 | 55.9 | |||||
Balance at Jun. 30, 2023 | $ 34.7 | 272.7 | 542.3 | (161.6) | (50.2) | 6.6 | $ 644.5 |
Balance (in shares) at Jun. 30, 2023 | 55.6 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | $ 0 | 0 | 46.5 | 0 | 0 | 0.4 | 46.9 |
Other comprehensive income (loss) | 0 | 0 | 0 | (12.1) | 0 | 0 | (12.1) |
Stock options and awards | $ 0.1 | 0.6 | 0 | 0 | 0 | 0 | 0.7 |
Stock options and awards (in shares) | 0.1 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (9.1) | 0 | (9.1) |
Stock-based compensation expense | 0 | 3.1 | 0 | 0 | 0 | 0 | 3.1 |
Balance at Sep. 30, 2023 | $ 34.8 | 276.4 | 588.8 | (173.7) | (59.3) | 7 | 674 |
Balance (in shares) at Sep. 30, 2023 | 55.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net earnings (loss) | $ 0 | 0 | 44.4 | 0 | 0 | 0.7 | 45.1 |
Other comprehensive income (loss) | 0 | 0 | 0 | 19.9 | 0 | 0.1 | 20 |
Stock options and awards | $ 0.2 | 0.1 | 0 | 0 | 0 | 0 | 0.3 |
Stock options and awards (in shares) | 0.2 | ||||||
Purchase of treasury stock | $ 0 | 0 | 0 | 0 | (7.3) | 0 | (7.3) |
Stock-based compensation expense | 0 | 3.1 | 0 | 0 | 0 | 0 | 3.1 |
Balance at Dec. 31, 2023 | $ 35 | $ 279.6 | $ 633.2 | $ (153.8) | $ (66.6) | $ 7.8 | $ 735.2 |
Balance (in shares) at Dec. 31, 2023 | 55.9 | 55.9 |
General
General | 9 Months Ended |
Dec. 31, 2023 | |
General [Abstract] | |
General | Note 1: General The accompanying unaudited condensed consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flows required by GAAP for complete financial statements. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results for the interim periods. Results for the first nine months of fiscal 2024 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes in Modine’s Annual Report on Form 10-K for the year ended March 31, 2023. New accounting guidance Supplier finance programs In September 2022, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding disclosure of supplier finance programs including the key terms, outstanding obligations, and where such obligations are presented within the financial statements. In addition, beginning for fiscal 2025, a roll forward of obligations under such programs will be required annually. The new guidance does not impact the recognition, measurement or financial statement presentation of supplier finance program obligations. The Company adopted this guidance as of April 1, 2023. The Company facilitates a voluntary supplier finance program through a financial institution that allows certain suppliers in the U.S. and Europe to request early payment for invoices, at a discount, from the financial institution. The Company or the financial institution may terminate the supplier finance program upon 90 days’ notice. The Company’s obligations to its suppliers, including amounts due and payment terms, are consistent, irrespective of whether a supplier participates in the program. The Company is not party to the arrangements between the participating suppliers and the financial institution. Under this program, the Company confirms the validity of supplier invoices to the financial institution and remits payments to it based on the original payment terms, which typically range from 60 to 120 days. The outstanding obligations under this program, included within accounts payable December March Segment reporting disclosures In November 2023, the FASB issued new disclosure guidance for reportable segments. The new guidance will require disclosure of significant segment expenses, which are expenses that are (i) significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”) and (iii) included in the reported measure of segment profit or loss. In addition, the new guidance will require companies to disclose the title and position of their CODM and expand interim disclosures to include the majority of the annual segment disclosures. The definition of and method for determining reportable segments is unchanged. The new disclosure requirements will become effective for the Company’s fiscal 2025 annual financial statements. The Company is currently evaluating potential impacts of disclosure requirements |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Dec. 31, 2023 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions | Note 2: Acquisitions and Dispositions Acquisition of Napps Technology Corporation On July 1, 2023, the Company acquired substantially all of the net operating assets of Napps Technology Corporation (“Napps”) for consideration totaling $5.8 million. The Company paid $4.8 million during the second quarter of fiscal 2024 and, based upon the terms of the agreement, expects to pay the remaining $1.0 million to the seller one year after closing. Napps is a Texas-based manufacturer of air- and water-cooled chillers, condensing units and heat pumps. This acquisition expands the Company’s indoor air quality product portfolio and supports its growth strategy and mission of improving indoor air quality. Napps has historical annual sales of approximately $5.0 million. Since the date of the acquisition, the Company has reported the financial results of the Napps business within the Climate Solutions segment. For the December 31, 2023 condensed consolidated financial statements, the Company has allocated the purchase price 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 engaged a third-party valuation specialist to assist in determining the fair value of the acquired intangible assets. The valuation analysis considered the expected future cash flows of the acquired business. The Company recorded $2.9 million of intangible assets, including customer relationship and acquired technology assets. The Company is amortizing the acquired intangible assets using a weighted-average life of approximately ten years. The Company allocated the excess of the purchase price over the net assets recognized to goodwill in the amount of $1.0 million, which is deductible for income tax purposes. The Company’s allocation of the purchase price for its acquisition of Napps was as follows: Trade accounts receivable $ 1.2 Inventories 1.3 Property, plant and equipment and other assets 0.1 Intangible assets 2.9 Goodwill 1.0 Accounts payable and other liabilities (0.7 ) Purchase price $ 5.8 Disposition of two coatings facilities On September 19, 2023, the Company sold two coatings facilities, located in California and Florida, to Protecall, LLC. These facilities provide aftermarket application services, in which HVAC units are sprayed with an anti-corrosion protective coating. The Company’s other coatings businesses continue to own and license its spray-applied coatings used in aftermarket applications and are strategically pursuing growth through product licensing arrangements. Prior to the disposition, the Company reported the financial results of these businesses within the Performance Technologies segment. In fiscal 2023, the net sales of these two businesses totaled $6.4 million. As a result of this transaction, the Company wrote-off $0.7 million of goodwill attributable to the disposed businesses and recorded a gain on sale of less than $0.1 million during the second quarter of fiscal 2024. Disposition of three Germany automotive businesses On October 31, 2023, the Company sold three automotive businesses based in Germany (the “disposal group”) to affiliates of Regent, L.P. The Company expects that the sale of these businesses, which produce air- and liquid-cooled products for internal combustion diesel and gasoline engines for the European automotive market, will support its strategic prioritization of resources towards higher-margin technologies. The Company determined the disposal group did not qualify as a discontinued operation for reporting purposes under U.S. GAAP. As part of its evaluation, the Company considered anticipated future sales in Europe to automotive and other vehicular customers with similar product offerings and using similar heat-transfer technology within the Performance Technologies segment. The net transaction price for the sale of the disposal group was less than $1.0 million. As a result of the sale, the Company recorded a $4.0 million gain on sale during the third quarter of fiscal 2024, primarily driven by the net liability position of the disposal group at the time of sale. In addition, the gain on sale includes the write-off of $0.6 million of net actuarial gains related to the disposal group’s pension plans. The Company reported the $4.0 million gain on the gain on sale of assets line within the consolidated statement of operations. Prior to the disposition, the Company reported the financial results of the disposal group within its Performance Technologies segment. Net sales of the disposal group included within the Company’s consolidated statements of operations for the first nine months of fiscal 2024 and 2023 totaled $54.2 million and $54.8 million, respectively. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | Note 3: Revenue Recognition Disaggregation of revenue The tables below present revenue for each of the Company’s operating segments. Each segment’s revenue is disaggregated by product group, by geographic location and based upon the timing of revenue recognitio n Beginning in fiscal 2024 and in connection with the Company’s strategic transformation and continued application of 80/20 principles across its businesses, the Company refined its reporting of disaggregated revenue within the Climate Solutions segment to be more consistent with how the segment has aligned its teams around three market-based verticals: i) heat transfer products; ii) HVAC & refrigeration; and iii) data center cooling. For the refined fiscal 2024 presentation, the Company reports revenue based upon the respective product lines and related customer relationships managed by each market-based vertical team. The disaggregated revenue information presented in the tables below for fiscal 2023 has been recast to be comparable with the fiscal 2024 presentation. Three months ended December 31, 2023 Three months ended December 31, 2022 Climate Solutions Performance Technologies Segment Total Climate Solutions Performance Technologies Segment Total Product groups: Heat transfer $ 90.0 $ - $ 90.0 $ 113.7 $ - $ 113.7 HVAC & refrigeration 92.0 - 92.0 89.8 - 89.8 Data center cooling 60.5 - 60.5 45.1 - 45.1 Air-cooled - 162.0 162.0 - 158.9 158.9 Liquid-cooled - 112.1 112.1 - 117.3 117.3 Advanced solutions - 44.8 44.8 - 35.2 35.2 Inter-segment sales - 4.1 4.1 - 6.4 6.4 Net sales $ 242.5 $ 323.0 $ 565.5 $ 248.6 $ 317.8 $ 566.4 Geographic location: Americas $ 145.2 $ 184.9 $ 330.1 $ 148.5 $ 167.2 $ 315.7 Europe 89.1 89.9 179.0 94.4 97.6 192.0 Asia 8.2 48.2 56.4 5.7 53.0 58.7 Net sales $ 242.5 $ 323.0 $ 565.5 $ 248.6 $ 317.8 $ 566.4 Timing of revenue recognition: Products transferred at a point in time $ 233.0 $ 309.4 $ 542.4 $ 233.3 $ 301.0 $ 534.3 Products transferred over time 9.5 13.6 23.1 15.3 16.8 32.1 Net sales $ 242.5 $ 323.0 $ 565.5 $ 248.6 $ 317.8 $ 566.4 Nine Nine Climate Solutions Performance Technologies Segment Total Climate Solutions Performance Technologies Segment Total Product groups: Heat transfer $ 321.7 $ - $ 321.7 $ 374.7 $ - $ 374.7 HVAC & refrigeration 260.9 - 260.9 262.0 - 262.0 Data center cooling 207.5 - 207.5 111.9 - 111.9 Air-cooled - 508.0 508.0 - 481.2 481.2 Liquid-cooled - 373.2 373.2 - 347.2 347.2 Advanced solutions - 133.0 133.0 - 102.8 102.8 Inter-segment sales - 19.4 19.4 0.3 20.9 21.2 Net sales $ 790.1 $ 1,033.6 $ 1,823.7 $ 748.9 $ 952.1 $ 1,701.0 Geographic location: Americas $ 450.0 $ 559.8 $ 1,009.8 $ 444.2 $ 514.3 $ 958.5 Europe 319.4 326.3 645.7 284.3 285.0 569.3 Asia 20.7 147.5 168.2 20.4 152.8 173.2 Net sales $ 790.1 $ 1,033.6 $ 1,823.7 $ 748.9 $ 952.1 $ 1,701.0 Timing of revenue recognition: Products transferred at a point in time $ 761.8 $ 986.0 $ 1,747.8 $ 707.1 $ 892.6 $ 1,599.7 Products transferred over time 28.3 47.6 75.9 41.8 59.5 101.3 Net sales $ 790.1 $ 1,033.6 $ 1,823.7 $ 748.9 $ 952.1 $ 1,701.0 Contract balances Contract assets and contract liabilities from contracts with customers were as follows: December 31, 2023 March 31, 2023 Contract assets $ 14.7 $ 19.3 Contract liabilities 79.2 21.5 Contract assets, included within other current assets in the consolidated balance sheets, primarily consist of capitalized costs related to customer-owned tooling contracts, wherein the customer has guaranteed reimbursement, and assets recorded for revenue recognized over time, which represent the Company’s rights to consideration for work completed but not yet billed. The $4.6 million decrease in contract assets during the first nine months of fiscal 2024 primarily resulted from a decrease in contract assets for revenue recognized over time. Contract liabilities, included within other current liabilities in the consolidated balance sheets, consist of customer deposits and other paymen |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Dec. 31, 2023 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 4: Fair Value Measurements Fair value is defined as the price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Fair value measurements are classified under the following hierarchy: • Level 1 – Quoted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. • Level 3 – Model-derived valuations in which one or more significant inputs are not observable. When available, the Company uses quoted market prices to determine fair value and classifies such measurements as Level 1. In some cases, where market prices are not available, the Company uses observable market-based inputs to calculate fair value, in which case the measurements are classified as Level 2. If quoted or observable market prices are not available, 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, cash equivalents, restricted cash, 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 fair value of the Company’s long-term debt is disclosed in Note 17 . |
Pensions
Pensions | 9 Months Ended |
Dec. 31, 2023 | |
Pensions [Abstract] | |
Pensions | Note 5: Pensions Pension cost included the following components: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Service cost $ - $ 0.1 $ 0.1 $ 0.2 Interest cost 2.3 2.0 7.1 6.0 Expected return on plan assets (2.5 ) (2.9 ) (7.7 ) (8.7 ) Amortization of unrecognized net loss 1.1 1.4 3.4 4.3 Net periodic benefit cost $ 0.9 $ 0.6 $ 2.9 $ 1.8 The Company’s funding policy 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. In connection with funding relief provisions within the American Rescue Plan Act of 2021, the Company did not make cash contributions to its U.S. pension plans during the first nine months of fiscal 2024. The Company expects to contribute $0.9 million to its U.S. pension plans during the fourth quarter of fiscal 2024. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | Note 6: Stock-Based Compensation The Company’s stock-based incentive programs consist of the following: (1) a long-term incentive plan (“LTIP”) for officers and other executives that authorizes grants of stock awards, stock options, and performance-based awards 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 calculates compensation expense based upon the fair value of the awards at the time of grant and subsequently recognizes expense ratably over the respective vesting periods of the stock-based awards. The Company recognized stock-based compensation expense of $3.1 million and $1.5 million for the three months ended December 31 The Company recognized stock-based compensation expense of $7.7 million and $5.0 million for the nine months ended December 31, 2023 and 2022, respectively . During the first nine months of fiscal 2024, the Company granted performance-based stock awards and restricted stock awards. The performance metrics for the performance-based stock awards are based upon a target average cash flow return on invested capital and a target average growth in consolidated net earnings before interest, taxes, depreciation, amortization, and certain other adjustments (“Adjusted EBITDA ) at the end of the performance period ending March 31, 2026. During the first nine months of fiscal 2023, the Company granted restricted stock awards, stock options, and performance cash awards. The weighted-average fair value of stock-based compensation awards granted during the nine months ended December 31, 2023 and 2022 were as follow s: Nine months ended December 31 2023 2022 Fair Value Fair Value Shares Per Award Shares Per Award Performance stock awards 0.3 $ 27.52 - - Restricted stock awards 0.2 $ 37.59 0.5 $ 13.49 Stock options - - 0.2 $ 6.99 As of December 31, 2023, unrecognized compensation expense related to non-vested stock-based compensation awards, which will be recognized as expense over the remaining service periods, was as follows: Unrecognized Compensation Expense Weighted-Average Remaining Service Period in Years Performance stock awards $ 12.2 2.2 Restricted stock awards 8.6 1.7 Stock options 1.3 1.4 Total $ 22.1 2.0 |
Restructuring Activities
Restructuring Activities | 9 Months Ended |
Dec. 31, 2023 | |
Restructuring Activities [Abstract] | |
Restructuring Activities | Note 7: Restructuring Activities During the first nine months of fiscal 2024, restructuring and repositioning expenses primarily consisted of equipment transfer costs and severance expenses in the Climate Solutions and Performance Technologies segments. These restructuring activities are part of the Company’s transformational initiatives supported by 80/20 principles and include product line transfers intended to achieve production efficiency improvements in its manufacturing facilities and targeted headcount reductions in Europe and Asia. During the first nine months of fiscal 2023, restructuring and repositioning expenses primarily consisted of severance expenses related to targeted headcount reductions in Europe within the Performance Technologies segment. In addition, the Company incurred equipment transfer costs and closure costs related to a previously-leased facility in the Performance Technologies and Climate Solutions segments, respectively . Restructuring and repositioning expenses were as follows: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Employee severance and related benefits $ 0.7 $ - $ 0.8 $ 1.4 Other restructuring and repositioning expenses 0.9 0.1 1.3 0.8 Total $ 1.6 $ 0.1 $ 2.1 $ 2.2 Other restructuring and repositioning expenses primarily consist of equipment transfer and plant consolidation costs. The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows: Three months ended December 31, 2023 2022 Beginning balance $ 3.2 $ 12.9 Additions 0.7 - Payments (1.0 ) (1.9 ) Effect of exchange rate changes 0.1 1.2 Ending balance $ 3.0 $ 12.2 Nine 2023 2022 Beginning balance $ 10.6 $ 20.2 Additions 0.8 1.4 Payments (5.9 ) (8.6 ) Disposition of businesses (a) (2.5 ) - Effect of exchange rate changes - (0.8 ) Ending balance $ 3.0 $ 12.2 (a) The Company sold three automotive businesses based in Germany during the third quarter of fiscal 2024. Prior to the sale, the Company reclassified the severance liability related to these businesses as held for sale on the September 30, 2023 consolidated balance sheet. See Note 2 for additional information regarding the sale. |
Other Income and Expense
Other Income and Expense | 9 Months Ended |
Dec. 31, 2023 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Note 8: Other Income and Expense Other income and expense consisted of the following: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Interest income $ 1.4 $ 0.3 $ 3.1 $ 0.7 Foreign currency transactions (a) (1.1 ) (0.3 ) (1.6 ) (3.4 ) Net periodic benefit cost (b) (0.8 ) (0.4 ) (2.5 ) (1.4 ) Total expense – $ (0.5 ) $ (0.4 ) $ (1.0 ) $ (4.1 ) (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 certain foreign currency exchange contracts. (b) Net periodic benefit cost for the Company’s pension and postretirement plans is exclusive of service cost. |
Income Taxes
Income Taxes | 9 Months Ended |
Dec. 31, 2023 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9: Income Taxes The Company’s effective tax rate for the three months ended December 31, 2023 and 2022 was 18.6 percent and 25.6 percent, respectively. The Company’s effective tax rate for the nine months ended December 31, 2023 and 2022 was 21.6 percent and 23.8 percent, respectively. The effective tax rates for fiscal 2024 are lower than the prior year, primarily due to changes in the mix and amount of foreign and U.S. earnings. The effective tax rates for the fiscal 2024 periods were also favorably impacted by a $3.1 million tax benefit related to the sale of three automotive businesses based in Germany during the third quarter. See Note 2 for additional information regarding the sale. In addition, the effective tax rate for the first nine months of fiscal 2024 was favorably impacted by the release of a $1.8 million unrecognized tax benefit during the second quarter, due to a lapse in statute of limitations. The Company records valuation allowances against its net deferred tax assets to the extent it determines it is more likely than not that such assets will not be realized in the future. Each quarter, the Company evaluates the probability that its deferred tax assets will be realized and determines whether valuation allowances or adjustments thereto are needed. This determination involves judgment and the use of significant estimates and assumptions, including expectations of future taxable income and tax planning strategies. In addition, the Company considers the duration of statutory carryforward periods and historical financial results. At December 31, 2023, valuation allowances against deferred tax assets in the U.S. and in certain foreign jurisdictions totaled $ 38.4 16.3 Accounting policies for interim reporting require the Company to adjust its effective tax rate each quarter to be consistent with its estimated annual effective tax rate. Under this methodology, the Company applies its estimated annual income tax rate to its year-to-date ordinary earnings to derive its income tax provision each quarter. The Company records the tax impacts of certain significant, unusual or infrequently occurring items in the period in which they occur. In addition, the Company excludes the impact of operations anticipated to generate net operating losses for the full fiscal year from the overall effective tax rate calculation and instead records them discretely based upon year-to-date results. The Company does not anticipate a significant change in unrecognized tax benefits during the remainder of fiscal 2024. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note : E The components of basic and diluted earnings per share were as follows: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Net earnings attributable to Modine $ 44.4 $ 24.5 $ 135.7 $ 63.2 Weighted-average shares outstanding – basic 52.3 52.3 52.4 52.2 Effect of dilutive securities 0.9 0.6 0.8 0.5 Weighted-average shares outstanding – diluted 53.2 52.9 53.2 52.7 Earnings per share: Net earnings per share – basic $ 0.85 $ 0.47 $ 2.59 $ 1.21 Net earnings per share – diluted $ 0.83 $ 0.46 $ 2.55 $ 1.20 There were no anti-dilutive securities that impacted the calculation of diluted earnings per share for the three and nine months ended December 31, 2023. For the three and nine months ended December 31, 2022, the calculation of diluted earnings per share excluded 0.1 million and 0.6 million stock options, respectively, because they were anti-dilutive. In addition, the calculation for the three and nine months ended December 31, 2022 excluded less than 0.1 million and 0.2 million restricted stock awards, respectively, because they were anti-dilutive. |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 9 Months Ended |
Dec. 31, 2023 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Note 11: Cash, Cash Equivalents and Restricted Cash Cash, cash equivalents and restricted cash consisted of the following: December 31, 2023 March 31, 2023 Cash and cash equivalents $ 149.7 $ 67.1 Restricted cash 1.5 0.1 Total cash, cash equivalents and restricted cash $ 151.2 $ 67.2 Restricted cash, which is reported within other current assets and other noncurrent assets in the consolidated balance sheets, consists primarily of deposits for contractual guarantees or commitments required for rents, import and export duties, and commercial agreements. |
Inventories
Inventories | 9 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Inventories | Note 12: Inventories Inventories consisted of the following: December 31, 2023 March 31, 2023 Raw materials $ 207.7 $ 218.3 Work in process 55.4 49.9 Finished goods 78.2 56.7 Total inventories $ 341.3 $ 324.9 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 13: Property, Plant and Equipment Property, plant and equipment, including depreciable lives, consisted of the following: December 31, 2023 March 31, 2023 Land $ 16.3 $ 16.4 Buildings and improvements ( 10 40 268.4 264.0 Machinery and equipment ( 3 15 815.7 853.3 Office equipment ( 3 10 95.1 93.6 Construction in progress 44.4 47.5 1,239.9 1,274.8 Less: accumulated depreciation (922.6 ) (960.3 ) Net property, plant and equipment $ 317.3 $ 314.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 14: Goodwill and Intangible Assets The following table presents a roll forward of the carrying value of goodwill from March 31, 2023 to December 31, 2023. Climate Solutions Performance Technologies Total Goodwill, March 31, 2023 $ 105.7 $ 59.9 $ 165.6 Acquisition (disposition) (a) 1.0 (0.7 ) 0.3 Effect of exchange rate changes 0.7 0.1 0.8 Goodwill, December 31 2023 $ 107.4 $ 59.3 $ 166.7 (a) During the second quarter of fiscal 2024, the Company recorded $1.0 million of goodwill in connection with its acquisition of Napps. In addition, the Company wrote-off $0.7 million of goodwill in connection with the sale of two coatings facilities. See Note 2 for additional information. Intangible assets consisted of the following: December 31, 2023 March 31, 2023 Gross Net Gross Net Carrying Accumulated Intangible Carrying Accumulated Intangible Value Amortization Assets Value Amortization Assets Customer relationships $ 63.3 $ (26.4 ) $ 36.9 $ 60.3 $ (23.4 ) $ 36.9 Trade names 50.3 (17.8 ) 32.5 50.1 (15.9 ) 34.2 Acquired technology 23.2 (14.2 ) 9.0 22.6 (12.6 ) 10.0 Total intangible assets $ 136.8 $ (58.4 ) $ 78.4 $ 133.0 $ (51.9 ) $ 81.1 During the second quarter of fiscal 2024, the Company recorded customer relationship and acquired technology intangible assets totaling $2.9 million related to the Napps acquisition. See Note 2 for additional information. The Company recorded amortization expense of $2.1 million and $2.0 million for the three months ended December 31, 2023 and 2022, respectively . |
Product Warranties
Product Warranties | 9 Months Ended |
Dec. 31, 2023 | |
Product Warranties [Abstract] | |
Product Warranties | Note 15: Product Warranties Changes in accrued warranty costs were as follows: Three months ended December 31, 2023 2022 Beginning balance $ 10.3 $ 6.2 Warranties recorded at time of sale 1.6 0.9 Adjustments to pre-existing warranties (0.4 ) (0.3 ) Settlements (1.4 ) (1.4 ) Effect of exchange rate changes 0.3 0.3 Ending balance $ 10.4 $ 5.7 Nine months ended December 31, 2023 2022 Beginning balance $ 6.9 $ 6.3 Warranties recorded at time of sale 4.7 4.2 Adjustments to pre-existing warranties 2.7 (0.8 ) Settlements (3.9 ) (3.8 ) Disposition of businesses (a) (0.2 ) - Effect of exchange rate changes 0.2 (0.2 ) Ending balance $ 10.4 $ 5.7 (a) The Company sold three |
Leases
Leases | 9 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 16: Leases Lease assets and liabilities The following table provides a summary of leases recorded on the consolidated balance sheets . Balance Sheet Location December 31, 2023 March 31, 2023 Lease Assets Operating lease ROU assets Other noncurrent assets $ 71.6 $ 59.1 Finance lease ROU assets (a) Property, plant and equipment – net 6.8 7.1 Lease Liabilities Operating lease liabilities Other current liabilities $ 13.0 $ 11.8 Operating lease liabilities Other noncurrent liabilities 59.8 48.9 Finance lease liabilities Long-term debt – current portion 0.4 0.4 Finance lease liabilities Long-term debt 2.0 2.3 (a) Finance right of use (“ROU”) were recorded net of accumulated amortization of $ 3.6 3.2 Components of lease expense The components of lease expense were as follows: Three months ended December 31, Nine December 31 2023 2022 2023 2022 Operating lease expense (a) $ 6.1 $ 5.2 $ 17.6 $ 16.0 Finance lease expense: Depreciation of ROU assets 0.1 0.1 0.4 0.4 Interest on lease liabilities - - 0.1 0.1 Total lease expense $ 6.2 $ 5.3 $ 18.1 $ 16.5 (a) For the three and nine months ended December 31, 2023, operating lease expense included short-term lease expense of $1.4 million and $4.3 million, respectively. For the three and nine months ended December 31, 2022, operating lease expense included short-term lease expense of $1.4 million and $4.2 million, respectively. Variable lease expense was not significan t. |
Indebtedness
Indebtedness | 9 Months Ended |
Dec. 31, 2023 | |
Indebtedness [Abstract] | |
Indebtedness | Note 17: Indebtedness Long-term debt consisted of the following: Fiscal year of maturity December 31, 2023 March 31, 2023 Term loans 2028 $ 208.2 $ 215.7 5.9% Senior Notes 2029 100.0 100.0 5.8% Senior Notes 2027 25.0 33.3 Other (a) 2.4 2.7 335.6 351.7 Less: current portion (19.7 ) (19.7 ) Less: unamortized debt issuance costs (2.4 ) (2.7 ) Total long-term debt $ 313.5 $ 329.3 (a) Other long-term debt primarily includes finance lease obligations Long-term debt, including the current portion of long-term debt, matures as follows: Fiscal Year Remainder of 2024 $ 2.8 2025 19.7 2026 44.8 2027 44.8 2028 198.0 2029 & beyond 25.5 Total $ 335.6 The Company maintains a credit agreement with a syndicate of banks that provides for a multi-currency $275.0 million revolving credit facility and U.S. dollar- and euro-denominated term loan facilities maturing in October 2027. In addition, the credit agreement provides for shorter-duration swingline loans. Borrowings under the revolving credit, swingline and term loan facilities bear interest at a variable rate, based upon the applicable reference rate and including a margin percentage dependent upon the Company’s leverage ratio, as described below. At December 31, 2023, the weighted-average interest rate for the term loans was 6.5 percent. Based upon the terms of the credit agreement, the Company classifies borrowings under its revolving credit and swingline facilities as long-term and short-term debt, respectively, on its consolidated balance sheets. At December 31, 2023 and March 31,2023, the Company had no outstanding borrowings under either its revolving credit or swingline facilities. As of December 31, 2023, domestic letters of credit totaled $5.6 million and, as a result, available borrowing capacity under the Company’s revolving credit facility was $269.4 million. The Company also maintains credit agreements for its foreign subsidiaries. The outstanding short-term borrowings related to these foreign credit agreements totaled $3.7 million at March 31, 2023. There were no short-term borrowings related to these agreements at December 31, 2023 Indebtedness under the Company’s credit agreement and Senior Note agreements is secured by liens on substantially all domestic assets. These agreements also require compliance with various covenants that may limit the Company’s ability to incur additional indebtedness; grant liens; make investments, loans, or guarantees; engage in certain transactions with affiliates; and make restricted payments including dividends. In addition, the agreements may require prepayment in the event of certain asset sales. Financial covenants within its credit agreements include a leverage ratio covenant, which requires the Company to limit its consolidated indebtedness, less a portion of its cash balances, both as defined by the credit agreements, to no more than three and one-quarter 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. As of December 31, 2023 and March 31, 2023, the carrying value of the Company’s long-term debt approximated fair value, with the exception of the Senior Notes, which had an aggregate fair value of $119.0 million and $125.9 million, respectively. The fair value of the Company’s long-term debt is categorized as Level 2 within the fair value hierarchy. Refer to Note 4 for the definition of a Level 2 fair value measurement |
Risks, Uncertainties, Contingen
Risks, Uncertainties, Contingencies and Litigation | 9 Months Ended |
Dec. 31, 2023 | |
Risks, Uncertainties, Contingencies and Litigation [Abstract] | |
Risks, Uncertainties, Contingencies and Litigation | Note 18: Risks, Uncertainties, Contingencies and Litigation Environmental T he Company has recorded environmental investigation and remediation accruals related to manufacturing facilities in the U.S., one of which the Company currently owns and operates, and at its former manufacturing facility in the Netherlands. These accruals primarily relate to soil and groundwater contamination at 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. In instances where a range of loss can be reasonably estimated for a probable environmental liability, but no amount within the range is a better estimate than any other amount, the Company accrues the minimum of the range. The Company’s accruals for environmental matters totaled Other litigation In the normal course of business, the Company and its subsidiaries are named as defendants in various lawsuits and enforcement proceedings by private parties, governmental agencies and/or others in which claims are asserted against Modine. The Company believes that any additional loss in excess of amounts already accrued would not have a material effect on the Company’s consolidated balance sheet, results of operations, and cash flows. In addition, management expects that the liabilities which may ultimately result from such lawsuits or proceedings, if any, would not have a material adverse effect on the Company’s financial position . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Note 19: Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows: Three months ended December 31, 2023 Nine months ended December 31, 2023 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (70.8 ) $ (102.8 ) $ (0.1 ) $ (173.7 ) $ (57.5 ) $ (104.4 ) $ 0.8 $ (161.1 ) Other comprehensive income (loss) before reclassifications 19.3 - 0.6 19.9 6.0 - 0.2 6.2 Reclassifications: Amortization of unrecognized net loss (a) - 1.0 - 1.0 - 3.1 - 3.1 Unrecognized net pension gain in disposed businesses (b) - (0.6 ) - (0.6 ) - (0.6 ) - (0.6 ) Realized losses (gains) – net (c) - - 0.1 0.1 - - (0.7 ) (0.7 ) Income taxes - (0.3 ) (0.2 ) (0.5 ) - (0.8 ) 0.1 (0.7 ) Total other comprehensive income (loss) 19.3 0.1 0.5 19.9 6.0 1.7 (0.4 ) 7.3 Ending balance $ (51.5 ) $ (102.7 ) $ 0.4 $ (153.8 ) $ (51.5 ) $ (102.7 ) $ 0.4 $ (153.8 ) Three months ended December 31, 2022 Nine months ended December 31, 2022 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (86.0 ) $ (108.4 ) $ (0.9 ) $ (195.3 ) $ (39.1 ) $ (111.1 ) $ 0.7 $ (149.5 ) Other comprehensive income (loss) before reclassifications 22.5 - 1.3 23.8 (24.4 ) - 0.1 (24.3 ) Reclassifications: Amortization of unrecognized net loss (a) - 1.3 - 1.3 - 4.0 - 4.0 Realized losses – net (c) - - 0.4 0.4 - - - - Income taxes - - (0.2 ) (0.2 ) - - (0.2 ) (0.2 ) Total other comprehensive income (loss) 22.5 1.3 1.5 25.3 (24.4 ) 4.0 (0.1 ) (20.5 ) Ending balance $ (63.5 ) $ (107.1 ) $ 0.6 $ (170.0 ) $ (63.5 ) $ (107.1 ) $ 0.6 $ (170.0 ) (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 5 for additional information about the Company’s pension plans. (b) As a result of the sale of three automotive businesses based in Germany, the Company wrote-off $0.6 million of net actuarial gains related to the disposal group’s pension plans. See Note 2 for additional information regarding the sale. (c) Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. |
Segment Information
Segment Information | 9 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Segment Information | Note 20: Segment Information The following is a summary of net sales, gross profit and operating income by segment: Three months ended December 31, 2023 2022 External Sales Inter-segment Sales Total External Sales Inter-segment Sales Total Net sales: Climate Solutions $ 242.5 $ - $ 242.5 $ 248.6 $ - $ 248.6 Performance Technologies 318.9 4.1 323.0 311.4 6.4 317.8 Segment total 561.4 4.1 565.5 560.0 6.4 566.4 Corporate and eliminations - (4.1 ) (4.1 ) - (6.4 ) (6.4 ) Net sales $ 561.4 $ - $ 561.4 $ 560.0 $ - $ 560.0 Nine months ended December 31, 2023 2022 External Sales Inter-segment Sales Total External Sales Inter-segment Sales Total Net sales: Climate Solutions $ 790.1 $ - $ 790.1 $ 748.6 $ 0.3 $ 748.9 Performance Technologies 1,014.2 19.4 1,033.6 931.2 20.9 952.1 Segment total 1,804.3 19.4 1,823.7 1,679.8 21.2 1,701.0 Corporate and eliminations - (19.4 ) (19.4 ) - (21.2 ) (21.2 ) Net sales $ 1,804.3 $ - $ 1,804.3 $ 1,679.8 $ - $ 1,679.8 Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 $’s % of sales $’s % of sales $’s % of sales $’s % of sales Gross profit: Climate Solutions $ 66.1 27.3 % $ 54.8 22.0 % $ 206.9 26.2 % $ 162.5 21.7 % Performance Technologies 61.0 18.9 % 43.0 13.5 % 182.4 17.6 % 115.2 12.1 % Segment total 127.1 22.5 % 97.8 17.3 % 389.3 21.3 % 277.7 16.3 % Corporate and eliminations 0.2 - (0.2 ) - 1.0 - (0.5 ) - Gross profit $ 127.3 22.7 % $ 97.6 17.4 % $ 390.3 21.6 % $ 277.2 16.5 % Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Operating income: Climate Solutions $ 38.8 $ 30.2 $ 127.7 $ 89.9 Performance Technologies 31.2 17.4 96.8 41.1 Segment total 70.0 47.6 224.5 131.0 Corporate and eliminations (8.3 ) (8.1 ) (30.6 ) (29.1 ) Operating income $ 61.7 $ 39.5 $ 193.9 $ 101.9 The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets: December 31, 2023 March 31, 2023 Assets: Climate Solutions $ 348.0 $ 334.8 Performance Technologies 357.7 388.1 Other (a) 945.7 843.0 Total assets $ 1,651.4 $ 1,565.9 (a) Represents cash and cash equivalents, other current assets, property plant and equipment, intangible assets, goodwill, deferred income taxes, and other noncurrent assets for the Climate Solutions and Performance Technologies segments and Corporate . |
Subsequent Events
Subsequent Events | 9 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 21: Subsequent Events Purchase of TMGcore, Inc. intellectual property In January 2024, the Company purchased intellectual property and other specific assets from TMGcore, Inc., a specialist in single- and two-phase liquid immersion cooling technology for data centers. The Company expects to utilize the liquid cooling immersion technology to support its growth strategy of expanding its global data center product offerings. The initial purchase price of the assets was $12.0 million. Additional contingent consideration may be payable to the seller in fiscal 2029. The amount of any additional consideration is dependent upon future financial metrics associated with the acquired technology. At this time, the Company cannot estimate the amount or range of additional consideration that may be payable to the seller in fiscal 2029. Technical service center restructuring In January 2024, the Company approved a plan to close a technical service center in Europe. The objective of this restructuring initiative is to optimize the Company’s utilization of its technical service center capacity and realign its cost structure in light of the recent sale of three automotive businesses in Germany. The Company is targeting to complete the closure during the first half of fiscal 2025. At this time, the Company has not determined the full restructuring plan, however, the Company preliminarily estimates that closure costs will total approximately $8.0 million to $12.0 million. This estimate is subject to change as management completes the restructuring plan. The Company anticipates that severance expenses associated with this restructuring initiative will be recorded during the fourth quarter of fiscal 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General (Policies)
General (Policies) | 9 Months Ended |
Dec. 31, 2023 | |
General [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of Modine Manufacturing Company (“Modine” or the “Company”) were prepared in conformity with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes necessary for a comprehensive presentation of financial position, results of operations and cash flows required by GAAP for complete financial statements. The financial statements include all normal recurring adjustments that are, in the opinion of management, necessary for a fair statement of results for the interim periods. Results for the first nine months of fiscal 2024 are not necessarily indicative of the results to be expected for the full year. These financial statements should be read in conjunction with the consolidated financial statements and related notes in Modine’s Annual Report on Form 10-K for the year ended March 31, 2023. |
New Accounting Guidance | New accounting guidance Supplier finance programs In September 2022, the Financial Accounting Standards Board (“FASB”) issued new guidance regarding disclosure of supplier finance programs including the key terms, outstanding obligations, and where such obligations are presented within the financial statements. In addition, beginning for fiscal 2025, a roll forward of obligations under such programs will be required annually. The new guidance does not impact the recognition, measurement or financial statement presentation of supplier finance program obligations. The Company adopted this guidance as of April 1, 2023. The Company facilitates a voluntary supplier finance program through a financial institution that allows certain suppliers in the U.S. and Europe to request early payment for invoices, at a discount, from the financial institution. The Company or the financial institution may terminate the supplier finance program upon 90 days’ notice. The Company’s obligations to its suppliers, including amounts due and payment terms, are consistent, irrespective of whether a supplier participates in the program. The Company is not party to the arrangements between the participating suppliers and the financial institution. Under this program, the Company confirms the validity of supplier invoices to the financial institution and remits payments to it based on the original payment terms, which typically range from 60 to 120 days. The outstanding obligations under this program, included within accounts payable December March Segment reporting disclosures In November 2023, the FASB issued new disclosure guidance for reportable segments. The new guidance will require disclosure of significant segment expenses, which are expenses that are (i) significant to the segment, (ii) regularly provided to the chief operating decision maker (“CODM”) and (iii) included in the reported measure of segment profit or loss. In addition, the new guidance will require companies to disclose the title and position of their CODM and expand interim disclosures to include the majority of the annual segment disclosures. The definition of and method for determining reportable segments is unchanged. The new disclosure requirements will become effective for the Company’s fiscal 2025 annual financial statements. The Company is currently evaluating potential impacts of disclosure requirements |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Acquisitions and Dispositions [Abstract] | |
Allocation of Purchase Price for Acquisition of Napps | The Company’s allocation of the purchase price for its acquisition of Napps was as follows: Trade accounts receivable $ 1.2 Inventories 1.3 Property, plant and equipment and other assets 0.1 Intangible assets 2.9 Goodwill 1.0 Accounts payable and other liabilities (0.7 ) Purchase price $ 5.8 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | The tables below present revenue for each of the Company’s operating segments. Each segment’s revenue is disaggregated by product group, by geographic location and based upon the timing of revenue recognitio n Beginning in fiscal 2024 and in connection with the Company’s strategic transformation and continued application of 80/20 principles across its businesses, the Company refined its reporting of disaggregated revenue within the Climate Solutions segment to be more consistent with how the segment has aligned its teams around three market-based verticals: i) heat transfer products; ii) HVAC & refrigeration; and iii) data center cooling. For the refined fiscal 2024 presentation, the Company reports revenue based upon the respective product lines and related customer relationships managed by each market-based vertical team. The disaggregated revenue information presented in the tables below for fiscal 2023 has been recast to be comparable with the fiscal 2024 presentation. Three months ended December 31, 2023 Three months ended December 31, 2022 Climate Solutions Performance Technologies Segment Total Climate Solutions Performance Technologies Segment Total Product groups: Heat transfer $ 90.0 $ - $ 90.0 $ 113.7 $ - $ 113.7 HVAC & refrigeration 92.0 - 92.0 89.8 - 89.8 Data center cooling 60.5 - 60.5 45.1 - 45.1 Air-cooled - 162.0 162.0 - 158.9 158.9 Liquid-cooled - 112.1 112.1 - 117.3 117.3 Advanced solutions - 44.8 44.8 - 35.2 35.2 Inter-segment sales - 4.1 4.1 - 6.4 6.4 Net sales $ 242.5 $ 323.0 $ 565.5 $ 248.6 $ 317.8 $ 566.4 Geographic location: Americas $ 145.2 $ 184.9 $ 330.1 $ 148.5 $ 167.2 $ 315.7 Europe 89.1 89.9 179.0 94.4 97.6 192.0 Asia 8.2 48.2 56.4 5.7 53.0 58.7 Net sales $ 242.5 $ 323.0 $ 565.5 $ 248.6 $ 317.8 $ 566.4 Timing of revenue recognition: Products transferred at a point in time $ 233.0 $ 309.4 $ 542.4 $ 233.3 $ 301.0 $ 534.3 Products transferred over time 9.5 13.6 23.1 15.3 16.8 32.1 Net sales $ 242.5 $ 323.0 $ 565.5 $ 248.6 $ 317.8 $ 566.4 Nine Nine Climate Solutions Performance Technologies Segment Total Climate Solutions Performance Technologies Segment Total Product groups: Heat transfer $ 321.7 $ - $ 321.7 $ 374.7 $ - $ 374.7 HVAC & refrigeration 260.9 - 260.9 262.0 - 262.0 Data center cooling 207.5 - 207.5 111.9 - 111.9 Air-cooled - 508.0 508.0 - 481.2 481.2 Liquid-cooled - 373.2 373.2 - 347.2 347.2 Advanced solutions - 133.0 133.0 - 102.8 102.8 Inter-segment sales - 19.4 19.4 0.3 20.9 21.2 Net sales $ 790.1 $ 1,033.6 $ 1,823.7 $ 748.9 $ 952.1 $ 1,701.0 Geographic location: Americas $ 450.0 $ 559.8 $ 1,009.8 $ 444.2 $ 514.3 $ 958.5 Europe 319.4 326.3 645.7 284.3 285.0 569.3 Asia 20.7 147.5 168.2 20.4 152.8 173.2 Net sales $ 790.1 $ 1,033.6 $ 1,823.7 $ 748.9 $ 952.1 $ 1,701.0 Timing of revenue recognition: Products transferred at a point in time $ 761.8 $ 986.0 $ 1,747.8 $ 707.1 $ 892.6 $ 1,599.7 Products transferred over time 28.3 47.6 75.9 41.8 59.5 101.3 Net sales $ 790.1 $ 1,033.6 $ 1,823.7 $ 748.9 $ 952.1 $ 1,701.0 |
Contract Assets and Contract Liabilities from Contracts with Customers | Contract assets and contract liabilities from contracts with customers were as follows: December 31, 2023 March 31, 2023 Contract assets $ 14.7 $ 19.3 Contract liabilities 79.2 21.5 |
Pensions (Tables)
Pensions (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Pensions [Abstract] | |
Pension Cost | Pension cost included the following components: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Service cost $ - $ 0.1 $ 0.1 $ 0.2 Interest cost 2.3 2.0 7.1 6.0 Expected return on plan assets (2.5 ) (2.9 ) (7.7 ) (8.7 ) Amortization of unrecognized net loss 1.1 1.4 3.4 4.3 Net periodic benefit cost $ 0.9 $ 0.6 $ 2.9 $ 1.8 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Fair Value of Stock-Based Compensation Awards | The weighted-average fair value of stock-based compensation awards granted during the nine months ended December 31, 2023 and 2022 were as follow s: Nine months ended December 31 2023 2022 Fair Value Fair Value Shares Per Award Shares Per Award Performance stock awards 0.3 $ 27.52 - - Restricted stock awards 0.2 $ 37.59 0.5 $ 13.49 Stock options - - 0.2 $ 6.99 |
Unrecognized Compensation Expense Related to Non-Vested Stock-Based Compensation Awards | As of December 31, 2023, unrecognized compensation expense related to non-vested stock-based compensation awards, which will be recognized as expense over the remaining service periods, was as follows: Unrecognized Compensation Expense Weighted-Average Remaining Service Period in Years Performance stock awards $ 12.2 2.2 Restricted stock awards 8.6 1.7 Stock options 1.3 1.4 Total $ 22.1 2.0 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Restructuring Activities [Abstract] | |
Restructuring and Repositioning Expenses | Restructuring and repositioning expenses were as follows: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Employee severance and related benefits $ 0.7 $ - $ 0.8 $ 1.4 Other restructuring and repositioning expenses 0.9 0.1 1.3 0.8 Total $ 1.6 $ 0.1 $ 2.1 $ 2.2 |
Changes in Accrued Severance | The Company accrues severance in accordance with its written plans, procedures, and relevant statutory requirements. Changes in accrued severance were as follows: Three months ended December 31, 2023 2022 Beginning balance $ 3.2 $ 12.9 Additions 0.7 - Payments (1.0 ) (1.9 ) Effect of exchange rate changes 0.1 1.2 Ending balance $ 3.0 $ 12.2 Nine 2023 2022 Beginning balance $ 10.6 $ 20.2 Additions 0.8 1.4 Payments (5.9 ) (8.6 ) Disposition of businesses (a) (2.5 ) - Effect of exchange rate changes - (0.8 ) Ending balance $ 3.0 $ 12.2 (a) The Company sold three automotive businesses based in Germany during the third quarter of fiscal 2024. Prior to the sale, the Company reclassified the severance liability related to these businesses as held for sale on the September 30, 2023 consolidated balance sheet. See Note 2 for additional information regarding the sale. |
Other Income and Expense (Table
Other Income and Expense (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Other Income and Expense [Abstract] | |
Other Income and Expense | Other income and expense consisted of the following: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Interest income $ 1.4 $ 0.3 $ 3.1 $ 0.7 Foreign currency transactions (a) (1.1 ) (0.3 ) (1.6 ) (3.4 ) Net periodic benefit cost (b) (0.8 ) (0.4 ) (2.5 ) (1.4 ) Total expense – $ (0.5 ) $ (0.4 ) $ (1.0 ) $ (4.1 ) (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 certain foreign currency exchange contracts. (b) Net periodic benefit cost for the Company’s pension and postretirement plans is exclusive of service cost. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share | The components of basic and diluted earnings per share were as follows: Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Net earnings attributable to Modine $ 44.4 $ 24.5 $ 135.7 $ 63.2 Weighted-average shares outstanding – basic 52.3 52.3 52.4 52.2 Effect of dilutive securities 0.9 0.6 0.8 0.5 Weighted-average shares outstanding – diluted 53.2 52.9 53.2 52.7 Earnings per share: Net earnings per share – basic $ 0.85 $ 0.47 $ 2.59 $ 1.21 Net earnings per share – diluted $ 0.83 $ 0.46 $ 2.55 $ 1.20 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Cash, Cash Equivalents and Restricted Cash [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash consisted of the following: December 31, 2023 March 31, 2023 Cash and cash equivalents $ 149.7 $ 67.1 Restricted cash 1.5 0.1 Total cash, cash equivalents and restricted cash $ 151.2 $ 67.2 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Inventories [Abstract] | |
Inventories | Inventories consisted of the following: December 31, 2023 March 31, 2023 Raw materials $ 207.7 $ 218.3 Work in process 55.4 49.9 Finished goods 78.2 56.7 Total inventories $ 341.3 $ 324.9 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment, including depreciable lives, consisted of the following: December 31, 2023 March 31, 2023 Land $ 16.3 $ 16.4 Buildings and improvements ( 10 40 268.4 264.0 Machinery and equipment ( 3 15 815.7 853.3 Office equipment ( 3 10 95.1 93.6 Construction in progress 44.4 47.5 1,239.9 1,274.8 Less: accumulated depreciation (922.6 ) (960.3 ) Net property, plant and equipment $ 317.3 $ 314.5 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets [Abstract] | |
Changes in Carrying Amount of Goodwill | The following table presents a roll forward of the carrying value of goodwill from March 31, 2023 to December 31, 2023. Climate Solutions Performance Technologies Total Goodwill, March 31, 2023 $ 105.7 $ 59.9 $ 165.6 Acquisition (disposition) (a) 1.0 (0.7 ) 0.3 Effect of exchange rate changes 0.7 0.1 0.8 Goodwill, December 31 2023 $ 107.4 $ 59.3 $ 166.7 (a) During the second quarter of fiscal 2024, the Company recorded $1.0 million of goodwill in connection with its acquisition of Napps. In addition, the Company wrote-off $0.7 million of goodwill in connection with the sale of two coatings facilities. See Note 2 for additional information. |
Intangible Assets | Intangible assets consisted of the following: December 31, 2023 March 31, 2023 Gross Net Gross Net Carrying Accumulated Intangible Carrying Accumulated Intangible Value Amortization Assets Value Amortization Assets Customer relationships $ 63.3 $ (26.4 ) $ 36.9 $ 60.3 $ (23.4 ) $ 36.9 Trade names 50.3 (17.8 ) 32.5 50.1 (15.9 ) 34.2 Acquired technology 23.2 (14.2 ) 9.0 22.6 (12.6 ) 10.0 Total intangible assets $ 136.8 $ (58.4 ) $ 78.4 $ 133.0 $ (51.9 ) $ 81.1 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Product Warranties [Abstract] | |
Changes in Accrued Warranty Costs | Changes in accrued warranty costs were as follows: Three months ended December 31, 2023 2022 Beginning balance $ 10.3 $ 6.2 Warranties recorded at time of sale 1.6 0.9 Adjustments to pre-existing warranties (0.4 ) (0.3 ) Settlements (1.4 ) (1.4 ) Effect of exchange rate changes 0.3 0.3 Ending balance $ 10.4 $ 5.7 Nine months ended December 31, 2023 2022 Beginning balance $ 6.9 $ 6.3 Warranties recorded at time of sale 4.7 4.2 Adjustments to pre-existing warranties 2.7 (0.8 ) Settlements (3.9 ) (3.8 ) Disposition of businesses (a) (0.2 ) - Effect of exchange rate changes 0.2 (0.2 ) Ending balance $ 10.4 $ 5.7 (a) The Company sold three |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases Recorded on Consolidated Balance Sheets | The following table provides a summary of leases recorded on the consolidated balance sheets . Balance Sheet Location December 31, 2023 March 31, 2023 Lease Assets Operating lease ROU assets Other noncurrent assets $ 71.6 $ 59.1 Finance lease ROU assets (a) Property, plant and equipment – net 6.8 7.1 Lease Liabilities Operating lease liabilities Other current liabilities $ 13.0 $ 11.8 Operating lease liabilities Other noncurrent liabilities 59.8 48.9 Finance lease liabilities Long-term debt – current portion 0.4 0.4 Finance lease liabilities Long-term debt 2.0 2.3 (a) Finance right of use (“ROU”) were recorded net of accumulated amortization of $ 3.6 3.2 |
Components of Lease Expense | The components of lease expense were as follows: Three months ended December 31, Nine December 31 2023 2022 2023 2022 Operating lease expense (a) $ 6.1 $ 5.2 $ 17.6 $ 16.0 Finance lease expense: Depreciation of ROU assets 0.1 0.1 0.4 0.4 Interest on lease liabilities - - 0.1 0.1 Total lease expense $ 6.2 $ 5.3 $ 18.1 $ 16.5 (a) For the three and nine months ended December 31, 2023, operating lease expense included short-term lease expense of $1.4 million and $4.3 million, respectively. For the three and nine months ended December 31, 2022, operating lease expense included short-term lease expense of $1.4 million and $4.2 million, respectively. Variable lease expense was not significan t. |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Indebtedness [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following: Fiscal year of maturity December 31, 2023 March 31, 2023 Term loans 2028 $ 208.2 $ 215.7 5.9% Senior Notes 2029 100.0 100.0 5.8% Senior Notes 2027 25.0 33.3 Other (a) 2.4 2.7 335.6 351.7 Less: current portion (19.7 ) (19.7 ) Less: unamortized debt issuance costs (2.4 ) (2.7 ) Total long-term debt $ 313.5 $ 329.3 (a) Other long-term debt primarily includes finance lease obligations |
Maturities of Long-Term Debt | Long-term debt, including the current portion of long-term debt, matures as follows: Fiscal Year Remainder of 2024 $ 2.8 2025 19.7 2026 44.8 2027 44.8 2028 198.0 2029 & beyond 25.5 Total $ 335.6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows: Three months ended December 31, 2023 Nine months ended December 31, 2023 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (70.8 ) $ (102.8 ) $ (0.1 ) $ (173.7 ) $ (57.5 ) $ (104.4 ) $ 0.8 $ (161.1 ) Other comprehensive income (loss) before reclassifications 19.3 - 0.6 19.9 6.0 - 0.2 6.2 Reclassifications: Amortization of unrecognized net loss (a) - 1.0 - 1.0 - 3.1 - 3.1 Unrecognized net pension gain in disposed businesses (b) - (0.6 ) - (0.6 ) - (0.6 ) - (0.6 ) Realized losses (gains) – net (c) - - 0.1 0.1 - - (0.7 ) (0.7 ) Income taxes - (0.3 ) (0.2 ) (0.5 ) - (0.8 ) 0.1 (0.7 ) Total other comprehensive income (loss) 19.3 0.1 0.5 19.9 6.0 1.7 (0.4 ) 7.3 Ending balance $ (51.5 ) $ (102.7 ) $ 0.4 $ (153.8 ) $ (51.5 ) $ (102.7 ) $ 0.4 $ (153.8 ) Three months ended December 31, 2022 Nine months ended December 31, 2022 Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Foreign Currency Translation Defined Benefit Plans Cash Flow Hedges Total Beginning balance $ (86.0 ) $ (108.4 ) $ (0.9 ) $ (195.3 ) $ (39.1 ) $ (111.1 ) $ 0.7 $ (149.5 ) Other comprehensive income (loss) before reclassifications 22.5 - 1.3 23.8 (24.4 ) - 0.1 (24.3 ) Reclassifications: Amortization of unrecognized net loss (a) - 1.3 - 1.3 - 4.0 - 4.0 Realized losses – net (c) - - 0.4 0.4 - - - - Income taxes - - (0.2 ) (0.2 ) - - (0.2 ) (0.2 ) Total other comprehensive income (loss) 22.5 1.3 1.5 25.3 (24.4 ) 4.0 (0.1 ) (20.5 ) Ending balance $ (63.5 ) $ (107.1 ) $ 0.6 $ (170.0 ) $ (63.5 ) $ (107.1 ) $ 0.6 $ (170.0 ) (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 5 for additional information about the Company’s pension plans. (b) As a result of the sale of three automotive businesses based in Germany, the Company wrote-off $0.6 million of net actuarial gains related to the disposal group’s pension plans. See Note 2 for additional information regarding the sale. (c) Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Dec. 31, 2023 | |
Segment Information [Abstract] | |
Net Sales, Gross Profit, Operating Income and Assets by Segment | The following is a summary of net sales, gross profit and operating income by segment: Three months ended December 31, 2023 2022 External Sales Inter-segment Sales Total External Sales Inter-segment Sales Total Net sales: Climate Solutions $ 242.5 $ - $ 242.5 $ 248.6 $ - $ 248.6 Performance Technologies 318.9 4.1 323.0 311.4 6.4 317.8 Segment total 561.4 4.1 565.5 560.0 6.4 566.4 Corporate and eliminations - (4.1 ) (4.1 ) - (6.4 ) (6.4 ) Net sales $ 561.4 $ - $ 561.4 $ 560.0 $ - $ 560.0 Nine months ended December 31, 2023 2022 External Sales Inter-segment Sales Total External Sales Inter-segment Sales Total Net sales: Climate Solutions $ 790.1 $ - $ 790.1 $ 748.6 $ 0.3 $ 748.9 Performance Technologies 1,014.2 19.4 1,033.6 931.2 20.9 952.1 Segment total 1,804.3 19.4 1,823.7 1,679.8 21.2 1,701.0 Corporate and eliminations - (19.4 ) (19.4 ) - (21.2 ) (21.2 ) Net sales $ 1,804.3 $ - $ 1,804.3 $ 1,679.8 $ - $ 1,679.8 Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 $’s % of sales $’s % of sales $’s % of sales $’s % of sales Gross profit: Climate Solutions $ 66.1 27.3 % $ 54.8 22.0 % $ 206.9 26.2 % $ 162.5 21.7 % Performance Technologies 61.0 18.9 % 43.0 13.5 % 182.4 17.6 % 115.2 12.1 % Segment total 127.1 22.5 % 97.8 17.3 % 389.3 21.3 % 277.7 16.3 % Corporate and eliminations 0.2 - (0.2 ) - 1.0 - (0.5 ) - Gross profit $ 127.3 22.7 % $ 97.6 17.4 % $ 390.3 21.6 % $ 277.2 16.5 % Three months ended December 31, Nine months ended December 31, 2023 2022 2023 2022 Operating income: Climate Solutions $ 38.8 $ 30.2 $ 127.7 $ 89.9 Performance Technologies 31.2 17.4 96.8 41.1 Segment total 70.0 47.6 224.5 131.0 Corporate and eliminations (8.3 ) (8.1 ) (30.6 ) (29.1 ) Operating income $ 61.7 $ 39.5 $ 193.9 $ 101.9 The following is a summary of segment assets, comprised entirely of trade accounts receivable and inventories, and other assets: December 31, 2023 March 31, 2023 Assets: Climate Solutions $ 348.0 $ 334.8 Performance Technologies 357.7 388.1 Other (a) 945.7 843.0 Total assets $ 1,651.4 $ 1,565.9 (a) Represents cash and cash equivalents, other current assets, property plant and equipment, intangible assets, goodwill, deferred income taxes, and other noncurrent assets for the Climate Solutions and Performance Technologies segments and Corporate . |
General (Details)
General (Details) - USD ($) $ in Millions | 9 Months Ended | |
Dec. 31, 2023 | Mar. 31, 2023 | |
Supplier Finance Program [Abstract] | ||
Notice period to terminate supplier finance program | 90 days | |
Outstanding obligation under supplier finance program | $ 16.1 | $ 21.2 |
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Minimum [Member] | ||
Supplier Finance Program [Abstract] | ||
Payment period for supplier finance program | 60 days | |
Maximum [Member] | ||
Supplier Finance Program [Abstract] | ||
Payment period for supplier finance program | 120 days |
Acquisitions and Dispositions,
Acquisitions and Dispositions, Acquisition of Napps Technology Corporation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Mar. 31, 2023 | |
Acquisition of Napps Technology Corporation [Abstract] | |||||
Payment for business acquisition | $ 4.8 | $ 0 | |||
Allocation of Purchase Price [Abstract] | |||||
Goodwill | 166.7 | $ 165.6 | |||
Napps [Member] | |||||
Acquisition of Napps Technology Corporation [Abstract] | |||||
Payment for business acquisition | $ 4.8 | ||||
Remaining payable for business acquisition | $ 1 | ||||
Historical annual sales | $ 5 | ||||
Weighted-average life of acquired intangible assets | 10 years | ||||
Goodwill deductible for income tax purposes | $ 1 | ||||
Allocation of Purchase Price [Abstract] | |||||
Trade accounts receivable | 1.2 | ||||
Inventories | 1.3 | ||||
Property, plant and equipment and other assets | 0.1 | ||||
Intangible assets | 2.9 | ||||
Goodwill | 1 | ||||
Accounts payable and other liabilities | (0.7) | ||||
Purchase price | $ 5.8 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions, Disposition of Two Coatings Facilities (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 19, 2023 Facility | Sep. 30, 2023 USD ($) | Mar. 31, 2023 USD ($) | |
Disposition of Two Coatings Facilities [Abstract] | |||
Number of coatings facilities sold | Facility | 2 | ||
Two Coatings Facilities [Member] | |||
Disposition of Two Coatings Facilities [Abstract] | |||
Net sales of disposed businesses | $ 6.4 | ||
Goodwill attributable to disposed businesses written off | $ 0.7 | ||
Two Coatings Facilities [Member] | Maximum [Member] | |||
Disposition of Two Coatings Facilities [Abstract] | |||
Gain on sale of disposed businesses | $ 0.1 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions, Germany Automotive Businesses Held for Sale (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2023 USD ($) Business | Dec. 31, 2023 USD ($) Business | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Disposition of Germany Automotive Businesses [Abstract] | |||||
Number of automotive businesses sold | Business | 3 | 3 | |||
Gain on sale of assets | $ 4 | $ 0 | $ 4 | $ 0 | |
Three Germany Automotive Businesses [Member] | |||||
Disposition of Germany Automotive Businesses [Abstract] | |||||
Gain on sale of assets | $ 4 | 4 | |||
Write-off of net actuarial gains | 0.6 | ||||
Net sales of disposal group | $ 54.2 | $ 54.8 | |||
Three Germany Automotive Businesses [Member] | Maximum [Member] | |||||
Disposition of Germany Automotive Businesses [Abstract] | |||||
Net transaction price for sale of disposal group | $ 1 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | |
Disaggregation of Revenue [Abstract] | |||||
Net sales | $ 561.4 | $ 560 | $ 1,804.3 | $ 1,679.8 | |
Contract Balances [Abstract] | |||||
Contract assets | 14.7 | 14.7 | $ 19.3 | ||
Contract liabilities | 79.2 | 79.2 | $ 21.5 | ||
Decrease in contract assets | (4.6) | ||||
Increase in contract liabilities | 57.7 | ||||
Products Transferred at a Point in Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 542.4 | 534.3 | 1,747.8 | 1,599.7 | |
Products Transferred Over Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 23.1 | 32.1 | 75.9 | 101.3 | |
Americas [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 330.1 | 315.7 | 1,009.8 | 958.5 | |
Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 179 | 192 | 645.7 | 569.3 | |
Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 56.4 | 58.7 | 168.2 | 173.2 | |
Heat Transfer [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 90 | 113.7 | 321.7 | 374.7 | |
HVAC & Refrigeration [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 92 | 89.8 | 260.9 | 262 | |
Data Center Cooling [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 60.5 | 45.1 | 207.5 | 111.9 | |
Air-Cooled [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 162 | 158.9 | 508 | 481.2 | |
Liquid-Cooled [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 112.1 | 117.3 | 373.2 | 347.2 | |
Advanced Solutions [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 44.8 | 35.2 | 133 | 102.8 | |
Climate Solutions [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 242.5 | 248.6 | 790.1 | 748.6 | |
Climate Solutions [Member] | Products Transferred at a Point in Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 233 | 233.3 | 761.8 | 707.1 | |
Climate Solutions [Member] | Products Transferred Over Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 9.5 | 15.3 | 28.3 | 41.8 | |
Climate Solutions [Member] | Americas [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 145.2 | 148.5 | 450 | 444.2 | |
Climate Solutions [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 89.1 | 94.4 | 319.4 | 284.3 | |
Climate Solutions [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 8.2 | 5.7 | 20.7 | 20.4 | |
Climate Solutions [Member] | Heat Transfer [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 90 | 113.7 | 321.7 | 374.7 | |
Climate Solutions [Member] | HVAC & Refrigeration [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 92 | 89.8 | 260.9 | 262 | |
Climate Solutions [Member] | Data Center Cooling [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 60.5 | 45.1 | 207.5 | 111.9 | |
Climate Solutions [Member] | Air-Cooled [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Climate Solutions [Member] | Liquid-Cooled [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Climate Solutions [Member] | Advanced Solutions [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Performance Technologies [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 318.9 | 311.4 | 1,014.2 | 931.2 | |
Performance Technologies [Member] | Products Transferred at a Point in Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 309.4 | 301 | 986 | 892.6 | |
Performance Technologies [Member] | Products Transferred Over Time [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 13.6 | 16.8 | 47.6 | 59.5 | |
Performance Technologies [Member] | Americas [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 184.9 | 167.2 | 559.8 | 514.3 | |
Performance Technologies [Member] | Europe [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 89.9 | 97.6 | 326.3 | 285 | |
Performance Technologies [Member] | Asia [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 48.2 | 53 | 147.5 | 152.8 | |
Performance Technologies [Member] | Heat Transfer [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Performance Technologies [Member] | HVAC & Refrigeration [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Performance Technologies [Member] | Data Center Cooling [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Performance Technologies [Member] | Air-Cooled [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 162 | 158.9 | 508 | 481.2 | |
Performance Technologies [Member] | Liquid-Cooled [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 112.1 | 117.3 | 373.2 | 347.2 | |
Performance Technologies [Member] | Advanced Solutions [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 44.8 | 35.2 | 133 | 102.8 | |
Operating Segments [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 565.5 | 566.4 | 1,823.7 | 1,701 | |
Operating Segments [Member] | Climate Solutions [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 242.5 | 248.6 | 790.1 | 748.9 | |
Operating Segments [Member] | Performance Technologies [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 323 | 317.8 | 1,033.6 | 952.1 | |
Inter-segment Sales [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 4.1 | 6.4 | 19.4 | 21.2 | |
Inter-segment Sales [Member] | Climate Solutions [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | 0 | 0 | 0 | 0.3 | |
Inter-segment Sales [Member] | Performance Technologies [Member] | |||||
Disaggregation of Revenue [Abstract] | |||||
Net sales | $ 4.1 | $ 6.4 | $ 19.4 | $ 20.9 |
Pensions (Details)
Pensions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Net Periodic Benefit Cost [Abstract] | |||||
Net periodic benefit cost | [1] | $ 0.8 | $ 0.4 | $ 2.5 | $ 1.4 |
Pension [Member] | |||||
Net Periodic Benefit Cost [Abstract] | |||||
Service cost | 0 | 0.1 | 0.1 | 0.2 | |
Interest cost | 2.3 | 2 | 7.1 | 6 | |
Expected return on plan assets | (2.5) | (2.9) | (7.7) | (8.7) | |
Amortization of unrecognized net loss | 1.1 | 1.4 | 3.4 | 4.3 | |
Net periodic benefit cost | 0.9 | $ 0.6 | 2.9 | $ 1.8 | |
Pension [Member] | U.S Plans [Member] | |||||
Employer Contributions [Abstract] | |||||
Cash contributions by employer | 0 | ||||
Expected contribution in fourth quarter of fiscal 2024 | $ 0.9 | $ 0.9 | |||
[1]Net periodic benefit cost for the Company’s pension and postretirement plans is exclusive of service cost. |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ 3.1 | $ 1.5 | $ 7.7 | $ 5 |
Stock-Based Compensation [Abstract] | ||||
Unrecognized compensation expense | 22.1 | $ 22.1 | ||
Weighted-average remaining service period | 2 years | |||
Performance Stock Awards [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Period of time to average cash flow return on invested capital | 3 years | |||
Period of time to average EBITDA growth | 3 years | |||
Stock granted (in shares) | 0.3 | 0 | ||
Fair value of stock granted (in dollars per share) | $ 27.52 | $ 0 | ||
Unrecognized compensation expense | 12.2 | $ 12.2 | ||
Weighted-average remaining service period | 2 years 2 months 12 days | |||
Restricted Stock Awards [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Stock granted (in shares) | 0.2 | 0.5 | ||
Fair value of stock granted (in dollars per share) | $ 37.59 | $ 13.49 | ||
Unrecognized compensation expense | 8.6 | $ 8.6 | ||
Weighted-average remaining service period | 1 year 8 months 12 days | |||
Stock Options [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Options granted (in shares) | 0 | 0.2 | ||
Fair value of options granted (in dollars per share) | $ 0 | $ 6.99 | ||
Unrecognized compensation expense | $ 1.3 | $ 1.3 | ||
Weighted-average remaining service period | 1 year 4 months 24 days |
Restructuring Activities (Detai
Restructuring Activities (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2023 Business | Dec. 31, 2023 USD ($) Business | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Restructuring and Repositioning Expenses [Abstract] | ||||||
Employee severance and related benefits | $ 0.7 | $ 0 | $ 0.8 | $ 1.4 | ||
Other restructuring and repositioning expenses | 0.9 | 0.1 | 1.3 | 0.8 | ||
Total | 1.6 | 0.1 | 2.1 | 2.2 | ||
Changes in Accrued Severance [Roll Forward] | ||||||
Beginning balance | 3.2 | 12.9 | 10.6 | 20.2 | ||
Additions | 0.7 | 0 | 0.8 | 1.4 | ||
Payments | (1) | (1.9) | (5.9) | (8.6) | ||
Disposition of businesses | [1] | (2.5) | 0 | |||
Effect of exchange rate changes | 0.1 | 1.2 | 0 | (0.8) | ||
Ending balance | $ 3 | $ 12.2 | $ 3 | $ 12.2 | ||
Number of automotive businesses sold | Business | 3 | 3 | ||||
[1]The Company sold three automotive businesses based in Germany during the third quarter of fiscal 2024. Prior to the sale, the Company reclassified the severance liability related to these businesses as held for sale on the September 30, 2023 consolidated balance sheet. See Note 2 for additional information regarding the sale. |
Other Income and Expense (Detai
Other Income and Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | ||
Other Income and Expense [Abstract] | |||||
Interest income | $ 1.4 | $ 0.3 | $ 3.1 | $ 0.7 | |
Foreign currency transactions | [1] | (1.1) | (0.3) | (1.6) | (3.4) |
Net periodic benefit cost | [2] | (0.8) | (0.4) | (2.5) | (1.4) |
Total expense - net | $ (0.5) | $ (0.4) | $ (1) | $ (4.1) | |
[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 certain foreign currency exchange contracts.[2]Net periodic benefit cost for the Company’s pension and postretirement plans is exclusive of service cost. |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2023 Business | Dec. 31, 2023 USD ($) Business | Sep. 30, 2023 USD ($) | Dec. 31, 2022 | Dec. 31, 2023 USD ($) | Dec. 31, 2022 | |
Income Taxes [Abstract] | ||||||
Effective income tax rate | 18.60% | 25.60% | 21.60% | 23.80% | ||
Income tax benefit related to sale of automotive businesses | $ (3.1) | |||||
Income tax benefit related to release of unrecognized tax benefit due to lapse in statute of limitations | $ (1.8) | |||||
Income Taxes [Abstract] | ||||||
Number of automotive businesses sold | Business | 3 | 3 | ||||
U.S. [Member] | ||||||
Income Taxes [Abstract] | ||||||
Valuation allowance | $ 38.4 | $ 38.4 | ||||
Foreign Jurisdictions [Member] | ||||||
Income Taxes [Abstract] | ||||||
Valuation allowance | $ 16.3 | $ 16.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Modine | $ 44.4 | $ 24.5 | $ 135.7 | $ 63.2 |
Weighted-average shares outstanding - basic (in shares) | 52.3 | 52.3 | 52.4 | 52.2 |
Effect of dilutive securities (in shares) | 0.9 | 0.6 | 0.8 | 0.5 |
Weighted-average shares outstanding - diluted (in shares) | 53.2 | 52.9 | 53.2 | 52.7 |
Earnings per Share [Abstract] | ||||
Net earnings per share - basic (in dollars per share) | $ 0.85 | $ 0.47 | $ 2.59 | $ 1.21 |
Net earnings per share - diluted (in dollars per share) | $ 0.83 | $ 0.46 | $ 2.55 | $ 1.2 |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 | ||
Stock Options [Member] | ||||
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 | 0.6 | ||
Restricted Stock [Member] | ||||
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.2 | |||
Restricted Stock [Member] | Maximum [Member] | ||||
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.1 |
Cash, Cash Equivalents and Re_3
Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Cash, Cash Equivalents and Restricted Cash [Abstract] | ||||
Cash and cash equivalents | $ 149.7 | $ 67.1 | ||
Restricted cash | 1.5 | 0.1 | ||
Total cash, cash equivalents and restricted cash | $ 151.2 | $ 67.2 | $ 82.4 | $ 45.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 |
Inventories [Abstract] | ||
Raw materials | $ 207.7 | $ 218.3 |
Work in process | 55.4 | 49.9 |
Finished goods | 78.2 | 56.7 |
Total inventories | $ 341.3 | $ 324.9 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Mar. 31, 2023 |
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 1,239.9 | $ 1,274.8 |
Less: accumulated depreciation | (922.6) | (960.3) |
Net property, plant and equipment | 317.3 | 314.5 |
Land [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | 16.3 | 16.4 |
Buildings and Improvements [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 268.4 | 264 |
Buildings and Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, depreciable lives | 10 years | |
Buildings and Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, depreciable lives | 40 years | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 815.7 | 853.3 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, depreciable lives | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, depreciable lives | 15 years | |
Office Equipment [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 95.1 | 93.6 |
Office Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, depreciable lives | 3 years | |
Office Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment, depreciable lives | 10 years | |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, plant and equipment | $ 44.4 | $ 47.5 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 19, 2023 Facility | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | ||
Goodwill [Roll Forward] | ||||||||
Goodwill, beginning balance | $ 165.6 | |||||||
Acquisition | [1] | 0.3 | ||||||
Effect of exchange rate changes | 0.8 | |||||||
Goodwill, ending balance | $ 166.7 | 166.7 | ||||||
Number of coatings facilities sold | Facility | 2 | |||||||
Intangible Assets [Abstract] | ||||||||
Gross carrying value | 136.8 | 136.8 | $ 133 | |||||
Accumulated amortization | (58.4) | (58.4) | (51.9) | |||||
Net intangible assets | 78.4 | 78.4 | 81.1 | |||||
Amortization expense | 2.1 | $ 2 | 6.1 | $ 6 | ||||
Estimated Future Amortization Expense [Abstract] | ||||||||
Remainder of fiscal 2024 | 2 | 2 | ||||||
2025 | 8 | 8 | ||||||
2026 | 8 | 8 | ||||||
2027 | 8 | 8 | ||||||
2028 | 8 | 8 | ||||||
2029 | 7 | 7 | ||||||
Climate Solutions [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, beginning balance | 105.7 | |||||||
Acquisition | $ 1 | 1 | ||||||
Effect of exchange rate changes | 0.7 | |||||||
Goodwill, ending balance | 107.4 | 107.4 | ||||||
Performance Technologies [Member] | ||||||||
Goodwill [Roll Forward] | ||||||||
Goodwill, beginning balance | 59.9 | |||||||
Disposition | (0.7) | (0.7) | ||||||
Effect of exchange rate changes | 0.1 | |||||||
Goodwill, ending balance | 59.3 | 59.3 | ||||||
Customer Relationships [Member] | ||||||||
Intangible Assets [Abstract] | ||||||||
Gross carrying value | 63.3 | 63.3 | 60.3 | |||||
Accumulated amortization | (26.4) | (26.4) | (23.4) | |||||
Net intangible assets | 36.9 | 36.9 | 36.9 | |||||
Trade Names [Member] | ||||||||
Intangible Assets [Abstract] | ||||||||
Gross carrying value | 50.3 | 50.3 | 50.1 | |||||
Accumulated amortization | (17.8) | (17.8) | (15.9) | |||||
Net intangible assets | 32.5 | 32.5 | 34.2 | |||||
Acquired Technology [Member] | ||||||||
Intangible Assets [Abstract] | ||||||||
Gross carrying value | 23.2 | 23.2 | 22.6 | |||||
Accumulated amortization | (14.2) | (14.2) | (12.6) | |||||
Net intangible assets | $ 9 | $ 9 | $ 10 | |||||
Customer Relationships and Acquired Technology [Member] | ||||||||
Intangible Assets [Abstract] | ||||||||
Intangible assets acquired | $ 2.9 | |||||||
[1]During the second quarter of fiscal 2024, the Company recorded $1.0 million of goodwill in connection with its acquisition of Napps. In addition, the Company wrote-off $0.7 million of goodwill in connection with the sale of two coatings facilities. See Note 2 for additional information. |
Product Warranties (Details)
Product Warranties (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2023 Business | Dec. 31, 2023 USD ($) Business | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Accrued Warranty Costs [Roll Forward] | ||||||
Beginning balance | $ 10.3 | $ 6.2 | $ 6.9 | $ 6.3 | ||
Warranties recorded at time of sale | 1.6 | 0.9 | 4.7 | 4.2 | ||
Adjustments to pre-existing warranties | (0.4) | (0.3) | 2.7 | (0.8) | ||
Settlements | (1.4) | (1.4) | (3.9) | (3.8) | ||
Disposition of businesses | [1] | (0.2) | 0 | |||
Effect of exchange rate changes | 0.3 | 0.3 | 0.2 | (0.2) | ||
Ending balance | $ 10.4 | $ 5.7 | $ 10.4 | $ 5.7 | ||
Number of automotive businesses sold | Business | 3 | 3 | ||||
[1]The Company sold three |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | ||
Lease Assets and Liabilities [Abstract] | ||||||
Operating lease ROU assets | $ 71.6 | $ 71.6 | $ 59.1 | |||
Operating lease ROU assets, Statement of Financial Position [Extensible List] | Other noncurrent assets | Other noncurrent assets | Other noncurrent assets | |||
Finance lease ROU assets | [1] | $ 6.8 | $ 6.8 | $ 7.1 | ||
Finance lease ROU assets, Statement of Financial Position [Extensible List] | Property, plant and equipment - net | Property, plant and equipment - net | Property, plant and equipment - net | |||
Operating lease liabilities, current | $ 13 | $ 13 | $ 11.8 | |||
Operating lease liabilities, current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | Other current liabilities | |||
Operating lease liabilities, noncurrent | $ 59.8 | $ 59.8 | $ 48.9 | |||
Operating lease liabilities, noncurrent, Statement of Financial Position [Extensible List] | Other noncurrent liabilities | Other noncurrent liabilities | Other noncurrent liabilities | |||
Finance lease liabilities, current | $ 0.4 | $ 0.4 | $ 0.4 | |||
Finance lease liabilities, current, Statement of Financial Position [Extensible List] | Long-term debt - current portion | Long-term debt - current portion | Long-term debt - current portion | |||
Finance lease liabilities, noncurrent | $ 2 | $ 2 | $ 2.3 | |||
Finance lease liabilities, noncurrent, Statement of Financial Position [Extensible List] | Long-term debt | Long-term debt | Long-term debt | |||
Accumulated amortization | $ 3.6 | $ 3.6 | $ 3.2 | |||
Components of Lease Expense [Abstract] | ||||||
Operating lease expense | [2] | 6.1 | $ 5.2 | 17.6 | $ 16 | |
Depreciation of ROU assets | 0.1 | 0.1 | 0.4 | 0.4 | ||
Interest on lease liabilities | 0 | 0 | 0.1 | 0.1 | ||
Total lease expense | 6.2 | 5.3 | 18.1 | 16.5 | ||
Short-term lease expense | $ 1.4 | $ 1.4 | $ 4.3 | $ 4.2 | ||
[1] Finance right of use (“ROU”) were recorded net of accumulated amortization of $ 3.6 3.2 |
Indebtedness (Details)
Indebtedness (Details) $ in Millions | 9 Months Ended | ||
Dec. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | ||
Long-Term Debt [Abstract] | |||
Long-term debt | $ 335.6 | $ 351.7 | |
Less: current portion | (19.7) | (19.7) | |
Less: unamortized debt issuance costs | (2.4) | (2.7) | |
Total long-term debt | 313.5 | 329.3 | |
Maturities of Long-Term Debt [Abstract] | |||
Remainder of 2024 | 2.8 | ||
2025 | 19.7 | ||
2026 | 44.8 | ||
2027 | 44.8 | ||
2028 | 198 | ||
2029 & beyond | 25.5 | ||
Long-term debt | 335.6 | 351.7 | |
Indebtedness [Abstract] | |||
Short-term debt | $ 0 | 3.7 | |
Maximum [Member] | |||
Indebtedness [Abstract] | |||
Leverage ratio | 3.25 | ||
Minimum [Member] | |||
Indebtedness [Abstract] | |||
Interest coverage ratio | 3 | ||
Level 2 [Member] | |||
Indebtedness [Abstract] | |||
Fair value of long-term debt | $ 119 | 125.9 | |
Credit Agreement [Member] | |||
Indebtedness [Abstract] | |||
Letters of credit outstanding | 5.6 | ||
Term Loans [Member] | |||
Long-Term Debt [Abstract] | |||
Long-term debt | $ 208.2 | 215.7 | |
Fiscal year of maturity | 2028 | ||
Maturities of Long-Term Debt [Abstract] | |||
Long-term debt | $ 208.2 | 215.7 | |
Indebtedness [Abstract] | |||
Weighted-average interest rate for variable rate borrowings | 6.50% | ||
Revolving Credit Facility [Member] | |||
Long-Term Debt [Abstract] | |||
Long-term debt | $ 0 | 0 | |
Maturities of Long-Term Debt [Abstract] | |||
Long-term debt | 0 | 0 | |
Indebtedness [Abstract] | |||
Maximum borrowing capacity | 275 | ||
Available borrowing capacity | 269.4 | ||
Swingline Loans [Member] | |||
Indebtedness [Abstract] | |||
Short-term debt | 0 | 0 | |
5.9% Senior Notes [Member] | |||
Long-Term Debt [Abstract] | |||
Long-term debt | $ 100 | 100 | |
Interest rate percentage | 5.90% | ||
Fiscal year of maturity | 2029 | ||
Maturities of Long-Term Debt [Abstract] | |||
Long-term debt | $ 100 | 100 | |
5.8% Senior Notes [Member] | |||
Long-Term Debt [Abstract] | |||
Long-term debt | $ 25 | 33.3 | |
Interest rate percentage | 5.80% | ||
Fiscal year of maturity | 2027 | ||
Maturities of Long-Term Debt [Abstract] | |||
Long-term debt | $ 25 | 33.3 | |
Other [Member] | |||
Long-Term Debt [Abstract] | |||
Long-term debt | [1] | 2.4 | 2.7 |
Maturities of Long-Term Debt [Abstract] | |||
Long-term debt | [1] | 2.4 | 2.7 |
Foreign Credit Agreements [Member] | |||
Indebtedness [Abstract] | |||
Short-term debt | $ 0 | $ 3.7 | |
[1]Other long-term debt primarily includes finance lease obligations. |
Risks, Uncertainties, Conting_2
Risks, Uncertainties, Contingencies and Litigation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Mar. 31, 2023 | |
Environmental loss contingencies [Abstract] | ||
Reserves for environmental matters | $ 18.3 | $ 17.6 |
Increase in remediation accrual related to former manufacturing facility | $ 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Oct. 31, 2023 Business | Dec. 31, 2023 USD ($) Business | Dec. 31, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | ||
Changes in Accumulated Other Comprehensive Loss [Abstract] | ||||||
Beginning balance | $ 592.8 | |||||
Other comprehensive income (loss) before reclassifications | $ 19.9 | $ 23.8 | 6.2 | $ (24.3) | ||
Income taxes | (0.5) | (0.2) | (0.7) | (0.2) | ||
Total other comprehensive income (loss) | 19.9 | 25.3 | 7.3 | (20.5) | ||
Ending balance | $ 727.4 | 727.4 | ||||
Number of automotive businesses sold | Business | 3 | 3 | ||||
Accumulated Other Comprehensive Loss [Member] | ||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | ||||||
Beginning balance | $ (173.7) | (195.3) | (161.1) | (149.5) | ||
Ending balance | (153.8) | (170) | (153.8) | (170) | ||
Foreign Currency Translation [Member] | ||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | ||||||
Beginning balance | (70.8) | (86) | (57.5) | (39.1) | ||
Other comprehensive income (loss) before reclassifications | 19.3 | 22.5 | 6 | (24.4) | ||
Income taxes | 0 | 0 | 0 | 0 | ||
Total other comprehensive income (loss) | 19.3 | 22.5 | 6 | (24.4) | ||
Ending balance | (51.5) | (63.5) | (51.5) | (63.5) | ||
Defined Benefit Plans [Member] | ||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | ||||||
Beginning balance | (102.8) | (108.4) | (104.4) | (111.1) | ||
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 | ||
Reclassification from accumulated other comprehensive income (loss) | [1] | 1 | 1.3 | 3.1 | 4 | |
Unrecognized net pension gain in disposed businesses | [2] | (0.6) | (0.6) | |||
Income taxes | (0.3) | 0 | (0.8) | 0 | ||
Total other comprehensive income (loss) | 0.1 | 1.3 | 1.7 | 4 | ||
Ending balance | (102.7) | (107.1) | (102.7) | (107.1) | ||
Cash Flow Hedges [Member] | ||||||
Changes in Accumulated Other Comprehensive Loss [Abstract] | ||||||
Beginning balance | (0.1) | (0.9) | 0.8 | 0.7 | ||
Other comprehensive income (loss) before reclassifications | 0.6 | 1.3 | 0.2 | 0.1 | ||
Reclassification from accumulated other comprehensive income (loss) | [3] | 0.1 | 0.4 | (0.7) | 0 | |
Income taxes | (0.2) | (0.2) | 0.1 | (0.2) | ||
Total other comprehensive income (loss) | 0.5 | 1.5 | (0.4) | (0.1) | ||
Ending balance | $ 0.4 | $ 0.6 | $ 0.4 | $ 0.6 | ||
[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 5 for additional information about the Company’s pension plans.[2]As a result of the sale of three automotive businesses based in Germany, the Company wrote-off $0.6 million of net actuarial gains related to the disposal group’s pension plans. See Note 2 for additional information regarding the sale.[3]Amounts represent net gains and losses associated with cash flow hedges that were reclassified to net earnings. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2023 | ||
Segment Information [Abstract] | ||||||
Net sales | $ 561.4 | $ 560 | $ 1,804.3 | $ 1,679.8 | ||
Gross profit | $ 127.3 | $ 97.6 | $ 390.3 | $ 277.2 | ||
Gross profit (% of sales) | 22.70% | 17.40% | 21.60% | 16.50% | ||
Operating income | $ 61.7 | $ 39.5 | $ 193.9 | $ 101.9 | ||
Total assets | 1,651.4 | 1,651.4 | $ 1,565.9 | |||
Climate Solutions [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 242.5 | 248.6 | 790.1 | 748.6 | ||
Performance Technologies [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 318.9 | 311.4 | 1,014.2 | 931.2 | ||
Other [Member] | ||||||
Segment Information [Abstract] | ||||||
Total assets | [1] | 945.7 | 945.7 | 843 | ||
Operating Segments [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 565.5 | 566.4 | 1,823.7 | 1,701 | ||
Gross profit | $ 127.1 | $ 97.8 | $ 389.3 | $ 277.7 | ||
Gross profit (% of sales) | 22.50% | 17.30% | 21.30% | 16.30% | ||
Operating income | $ 70 | $ 47.6 | $ 224.5 | $ 131 | ||
Operating Segments [Member] | Segment Total [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 565.5 | 566.4 | 1,823.7 | 1,701 | ||
Operating Segments [Member] | Climate Solutions [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 242.5 | 248.6 | 790.1 | 748.9 | ||
Gross profit | $ 66.1 | $ 54.8 | $ 206.9 | $ 162.5 | ||
Gross profit (% of sales) | 27.30% | 22% | 26.20% | 21.70% | ||
Operating income | $ 38.8 | $ 30.2 | $ 127.7 | $ 89.9 | ||
Total assets | 348 | 348 | 334.8 | |||
Operating Segments [Member] | Performance Technologies [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 323 | 317.8 | 1,033.6 | 952.1 | ||
Gross profit | $ 61 | $ 43 | $ 182.4 | $ 115.2 | ||
Gross profit (% of sales) | 18.90% | 13.50% | 17.60% | 12.10% | ||
Operating income | $ 31.2 | $ 17.4 | $ 96.8 | $ 41.1 | ||
Total assets | 357.7 | 357.7 | $ 388.1 | |||
Inter-segment Sales [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 4.1 | 6.4 | 19.4 | 21.2 | ||
Inter-segment Sales [Member] | Climate Solutions [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 0 | 0 | 0 | 0.3 | ||
Inter-segment Sales [Member] | Performance Technologies [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | 4.1 | 6.4 | 19.4 | 20.9 | ||
Corporate and Eliminations [Member] | ||||||
Segment Information [Abstract] | ||||||
Net sales | (4.1) | (6.4) | (19.4) | (21.2) | ||
Gross profit | $ 0.2 | $ (0.2) | $ 1 | $ (0.5) | ||
Gross profit (% of sales) | 0% | 0% | 0% | 0% | ||
Operating income | $ (8.3) | $ (8.1) | $ (30.6) | $ (29.1) | ||
[1]Represents cash and cash equivalents, other current assets, property plant and equipment, intangible assets, goodwill, deferred income taxes, and other noncurrent assets for the Climate Solutions and Performance Technologies segments and Corporate. |
Subsequent Events (Details)
Subsequent Events (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Oct. 31, 2023 Business | Jan. 31, 2024 USD ($) | Dec. 31, 2023 Business | |
Technical Service Center Restructuring [Abstract] | |||
Number of automotive businesses sold | Business | 3 | 3 | |
Forecast [Member] | Minimum [Member] | |||
Technical Service Center Restructuring [Abstract] | |||
Closure costs | $ 8 | ||
Forecast [Member] | Maximum [Member] | |||
Technical Service Center Restructuring [Abstract] | |||
Closure costs | 12 | ||
Subsequent Event [Member] | TMGcore, Inc. [Member] | |||
Purchase of Intellectual Property Asset [Abstract] | |||
Purchase price of assets | $ 12 |