Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 20, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | Hexcel Corporation | |
Entity Central Index Key | 0000717605 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2023 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 84,465,701 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 1-8472 | |
Entity Tax Identification Number | 94-1109521 | |
Entity Address, Address Line One | Two Stamford Plaza | |
Entity Address, Address Line Two | 281 Tresser Boulevard | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06901-3238 | |
City Area Code | (203) | |
Local Phone Number | 969-0666 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | DE | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | HXL | |
Security Exchange Name | NYSE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 104.2 | $ 112 |
Accounts receivable, net | 257.3 | 222.7 |
Inventories, net | 360.9 | 319.3 |
Contract assets | 27.2 | 32 |
Prepaid and other Current Assets | 51 | 38.9 |
Assets held for sale | 9.5 | 9.5 |
Total current assets | 810.1 | 734.4 |
Property, plant and equipment | 3,163 | 3,087.9 |
Less accumulated depreciation | (1,482.8) | (1,430.1) |
Net property, plant and equipment | 1,680.2 | 1,657.8 |
Goodwill and other intangible assets, net | 254.2 | 256 |
Investments in affiliated companies | 50.1 | 47.6 |
Other assets | 127.3 | 141.5 |
Total assets | 2,921.9 | 2,837.3 |
Current liabilities: | ||
Short-term borrowings | 0.1 | 0.2 |
Accounts payable | 117.5 | 155.5 |
Accrued compensation and benefits | 61.6 | 69.6 |
Financial instruments | 13.7 | 22 |
Accrued liabilities | 83.2 | 82.5 |
Total current liabilities | 276.1 | 329.8 |
Long-term debt | 779 | 723.3 |
Retirement obligations | 44.8 | 42.7 |
Deferred income taxes | 117.5 | 126.4 |
Other non-current liabilities | 38.4 | 60.9 |
Total liabilities | 1,255.8 | 1,283.1 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 200.0 shares authorized, 110.3 shares and 110.1 shares issued at June 30, 2022 and December 31, 2021, respectively | 1.1 | 1.1 |
Additional paid-in capital | 925.9 | 905 |
Retained earnings | 2,169.2 | 2,104.9 |
Accumulated other comprehensive loss | (145.2) | (174.4) |
Total stockholders' equity including treasury stock value | 2,951 | 2,836.6 |
Less - Treasury stock, at cost, 26.2 shares at June 30, 2022 and 26.1 shares at December 31, 2021 | (1,284.9) | (1,282.4) |
Total stockholders' equity | 1,666.1 | 1,554.2 |
Total liabilities and stockholders' equity | $ 2,921.9 | $ 2,837.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 110,600,000 | 110,400,000 |
Treasury stock, shares | 26,200,000 | 26,200,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 454.3 | $ 393 | $ 912 | $ 783.6 |
Cost of sales | 343.5 | 303.5 | 673.5 | 607.4 |
Gross margin | 110.8 | 89.5 | 238.5 | 176.2 |
Selling, general and administrative expenses | 35.7 | 33.5 | 86.5 | 78.2 |
Research and technology expenses | 13.3 | 11.3 | 27.2 | 22.2 |
Other operating expense (income) | 0.5 | (19.1) | 0.7 | (18.1) |
Operating income | 61.3 | 63.8 | 124.1 | 93.9 |
Interest expense, net | 9.2 | 8.9 | 18.6 | 18 |
Other income | 0 | (0.3) | 0 | (0.3) |
Income before income taxes, and equity in earnings from affiliated companies | 52.1 | 55.2 | 105.5 | 76.2 |
Income tax expense | 11.5 | 12.7 | 23.2 | 17.4 |
Income before equity in earnings from affiliated companies | 40.6 | 42.5 | 82.3 | 58.8 |
Equity in earnings from affiliated companies | 1.9 | 2.2 | 2.9 | 3.7 |
Net income | $ 42.5 | $ 44.7 | $ 85.2 | $ 62.5 |
Basic net income per common share | $ 0.50 | $ 0.53 | $ 1.01 | $ 0.74 |
Diluted net income (loss) per common share | $ 0.50 | $ 0.53 | $ 1 | $ 0.74 |
Weighted-average common shares: | ||||
Basic | 84.7 | 84.4 | 84.6 | 84.3 |
Diluted | 85.6 | 85 | 85.5 | 84.9 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 42.5 | $ 44.7 | $ 85.2 | $ 62.5 |
Currency translation adjustments | 6.1 | (34.8) | 18.1 | (50.5) |
Net unrealized pension and other benefit actuarial (losses) gains and prior service credits (net of tax) | (1) | 4.5 | (1) | 7.7 |
Net unrealized gains (losses) on financial instruments (net of tax) | 1.8 | (16.9) | 12.1 | (22) |
Total other comprehensive income (loss) | 6.9 | (47.2) | 29.2 | (64.8) |
Comprehensive income (loss) | $ 49.4 | $ (2.5) | $ 114.4 | $ (2.3) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities | ||
Net income | $ 85.2 | $ 62.5 |
Reconciliation to net cash used by operating activities: | ||
Depreciation and amortization | 61.7 | 63.9 |
Amortization related to financing | 0.4 | 0.4 |
Deferred income taxes | (6.7) | (4.1) |
Equity in earnings from affiliated companies | (2.9) | (3.7) |
Stock-based compensation | 15.7 | 12.8 |
Restructuring expenses, net of payments | (3.6) | (6) |
Impairment of assets | 1.7 | |
Gain on sale of asset | 0 | (19.4) |
Gain on Sale of Investments | (0.3) | |
Changes in assets and liabilities: | ||
Increase in accounts receivable | (33.9) | (74.5) |
Increase in inventories | (36.8) | (38.9) |
Increase in prepaid expenses and other current assets | (7.3) | (10.1) |
Increase in accounts payable/accrued liabilities | (35.9) | 28.4 |
Other – net | (7.5) | 7.3 |
Net cash provided by operating activities | 30.1 | 18.3 |
Cash flows from investing activities | ||
Capital expenditures | (74.8) | (37.9) |
Proceeds from sale of asset | 0 | 21.2 |
Proceeds from sale of investments | 2.5 | 0.5 |
Net cash used for investing activities | (72.3) | (16.2) |
Cash flows from financing activities | ||
Issuance costs related to senior unsecured credit facilities | (2.5) | 0 |
Repayment of finance lease obligation and other debt, net | (0.1) | (0.2) |
Dividends paid | (21.1) | (16.8) |
Activity under stock plans | 2.7 | 1.4 |
Net cash provided by (used for) financing activities | 34 | (26.6) |
Effect of exchange rate changes on cash and cash equivalents | 0.4 | (4) |
Net decrease in cash and cash equivalents | (7.8) | (28.5) |
Cash and cash equivalents at beginning of period | 112 | 127.7 |
Cash and cash equivalents at end of period | 104.2 | 99.2 |
Supplemental data: | ||
Accrual basis additions to plant, property, and equipment | 70.5 | 28.3 |
Senior Unsecured Credit Facility Two Thousand Twenty Eight [Member] | ||
Cash flows from financing activities | ||
Proceeds from Long-Term Lines of Credit | 98 | 0 |
Repayment of senior unsecured credit facility | (18) | 0 |
Senior Unsecured Credit Facility Two Thousand Twenty Four [Member] | ||
Cash flows from financing activities | ||
Proceeds from Long-Term Lines of Credit | 65 | 35 |
Repayment of senior unsecured credit facility | $ (90) | $ (46) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Par | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance at Dec. 31, 2021 | $ 1,485.5 | $ 1.1 | $ 878.6 | $ 2,012.5 | $ (126.5) | $ (1,280.2) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 17.8 | 17.8 | ||||
Dividends paid on common stock | (8.5) | (8.5) | ||||
Change in other comprehensive (loss)- net of tax | (17.6) | (17.6) | ||||
Stock based compensation | 9.9 | 11.3 | (1.4) | |||
Ending Balance at Mar. 31, 2022 | 1,487.1 | 1.1 | 889.9 | 2,021.8 | (144.1) | (1,281.6) |
Beginning Balance at Dec. 31, 2021 | 1,485.5 | 1.1 | 878.6 | 2,012.5 | (126.5) | (1,280.2) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 62.5 | |||||
Change in other comprehensive (loss)- net of tax | (64.8) | |||||
Ending Balance at Jun. 30, 2022 | 1,480.3 | 1.1 | 894.1 | 2,058 | (191.3) | (1,281.6) |
Beginning Balance at Mar. 31, 2022 | 1,487.1 | 1.1 | 889.9 | 2,021.8 | (144.1) | (1,281.6) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 44.7 | 44.7 | ||||
Dividends paid on common stock | (8.5) | (8.5) | ||||
Change in other comprehensive (loss)- net of tax | (47.2) | (47.2) | ||||
Stock based compensation | 4.2 | 4.2 | ||||
Ending Balance at Jun. 30, 2022 | 1,480.3 | 1.1 | 894.1 | 2,058 | (191.3) | (1,281.6) |
Beginning Balance at Dec. 31, 2022 | 1,554.2 | 1.1 | 905 | 2,104.9 | (174.4) | (1,282.4) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 42.7 | 42.7 | ||||
Dividends paid on common stock | (10.4) | (10.4) | ||||
Change in other comprehensive (loss)- net of tax | 22.3 | 22.3 | ||||
Stock based compensation | 13.4 | 15.8 | (2.4) | |||
Ending Balance at Mar. 31, 2023 | 1,622.2 | 1.1 | 920.8 | 2,137.2 | (152.1) | (1,284.8) |
Beginning Balance at Dec. 31, 2022 | 1,554.2 | 1.1 | 905 | 2,104.9 | (174.4) | (1,282.4) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 85.2 | |||||
Change in other comprehensive (loss)- net of tax | 29.2 | 29.2 | ||||
Ending Balance at Jun. 30, 2023 | 1,666.1 | 1.1 | 925.9 | 2,169.2 | (145.2) | (1,284.9) |
Beginning Balance at Mar. 31, 2023 | 1,622.2 | 1.1 | 920.8 | 2,137.2 | (152.1) | (1,284.8) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 42.5 | 42.5 | ||||
Dividends paid on common stock | (10.5) | (10.5) | ||||
Change in other comprehensive (loss)- net of tax | 6.9 | 6.9 | ||||
Stock based compensation | 5 | 5.1 | (0.1) | |||
Ending Balance at Jun. 30, 2023 | $ 1,666.1 | $ 1.1 | $ 925.9 | $ 2,169.2 | $ (145.2) | $ (1,284.9) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid on common stock price per share | $ 0.125 | $ 0.125 | $ 0.10 | $ 0.10 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 — Significant Acco unting Policies In these notes, the terms “Hexcel,” “the Company,” “we,” “us,” or “our” mean Hexcel Corporation and subsidiary companies. The accompanying condensed consolidated financial statements are those of Hexcel Corporation. Refer to Note 1 to the consolidated financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2022 for a discussion of our significant accounting policies. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared from the unaudited accounting records of Hexcel pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been omitted pursuant to rules and regulations of the SEC. In the opinion of management, the condensed consolidated financial statements include all normal recurring adjustments as well as any non-recurring adjustments necessary to present fairly the statement of financial position, results of operations, cash flows and statement of stockholders’ equity for the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2022 was derived from the audited 2022 consolidated balance sheet. Interim results are not necessarily indicative of results expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K. Investments in Affiliated Companies We have a 50 % equity investment in Aerospace Composites Malaysia Sdn. Bhd. This investment is accounted for using the equity method of accounting. Assets Held for Sale In November 2020, we closed our wind energy prepreg production facility in Windsor, Colorado. The plant assets to be sold were recorded in “Assets held for sale” in the Consolidated Balance Sheets at both June 30, 2023 and December 31, 2022. On July 10, 2023, we finalized the sale of the Windsor facility for approximately $ 11 million. The sale will be recorded in the third quarter of 2023 and will be reflected in the Company's financial statements for the quarter ended September 30, 2023. |
Net Income (Loss) Per Common Sh
Net Income (Loss) Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Common Share | Note 2 — Net Income Per Common Share Quarter Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2023 2022 2023 2022 Basic net income per common share: Net income $ 42.5 $ 44.7 $ 85.2 $ 62.5 Weighted average common shares outstanding 84.7 84.4 84.6 84.3 Basic net income per common share $ 0.50 $ 0.53 $ 1.01 $ 0.74 Diluted net income per common share: Net income $ 42.5 $ 44.7 85.2 62.5 Weighted average common shares outstanding — Basic 84.7 84.4 84.6 84.3 Plus incremental shares from assumed conversions: Restricted stock units 0.5 0.4 0.5 0.4 Stock options 0.4 0.2 0.4 0.2 Weighted average common shares outstanding — Dilutive 85.6 85.0 85.5 84.9 Diluted net income per common share $ 0.50 $ 0.53 $ 1.00 $ 0.74 Total common stock equivalents of 0.2 million and 0.6 million were excluded from the computation of diluted net income per share for the quarters ended June 30, 2023 and 2022, respectively, because to do so would have been anti-dilutive. Total common stock equivalents of 0.3 m illion and 0.7 million were excluded from the computation of diluted net income per share for the six months ended June 30, 2023 and 2022, respectively, because to do so would have been anti-dilutive. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 — Inventories (In millions) June 30, 2023 December 31, 2022 Raw materials $ 166.4 $ 153.3 Work in progress $ 53.1 42.8 Finished goods $ 141.4 123.2 Total Inventory $ 360.9 $ 319.3 |
Retirement and Other Postretire
Retirement and Other Postretirement Benefit Plans | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Retirement and Other Postretirement Benefit Plans | Retirement and Other Postretirement Benefit Plans We maintain qualified and nonqualified defined benefit retirement plans covering certain current and former U.S. and European employees, retirement savings plans covering eligible U.S. and U.K. employees and certain postretirement health care and life insurance benefit plans covering eligible U.S. retirees. We also participate in a union sponsored multi-employer pension plan covering certain U.S. employees with union affiliations. Defined Benefit Retirement Plans Net Periodic Benefit Costs Net periodic benefit costs of our defined benefit retirement plans for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 U.S. Nonqualified Defined Benefit Retirement Plans Service cost $ 0.3 $ 0.3 $ 0.6 $ 0.6 Interest cost 0.1 0.1 0.2 0.2 Net amortization 0.2 0.2 0.4 0.4 Net periodic benefit cost $ 0.6 $ 0.6 $ 1.2 $ 1.2 (In millions) June 30, 2023 December 31, 2022 Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans: Accrued liabilities $ 1.3 $ 1.4 Other non-current liabilities 19.2 18.5 Total accrued benefit $ 20.5 $ 19.9 Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 European Defined Benefit Retirement Plans Service cost $ 0.1 $ 0.2 $ 0.3 $ 0.4 Interest cost 1.3 0.5 2.5 1.1 Expected return on plan assets ( 1.2 ) ( 0.5 ) ( 2.4 ) ( 1.1 ) Net amortization and deferral 0.6 0.6 1.2 1.2 Net periodic benefit cost $ 0.8 $ 0.8 $ 1.6 $ 1.6 (In millions) June 30, 2023 December 31, 2022 Amounts recognized on the balance sheet for European defined benefit retirement plans: Other assets $ 6.3 $ 5.6 Accrued liabilities 1.3 0.1 Other non-current liabilities 13.0 12.1 Total accrued benefit $ 14.4 $ 12.2 All costs related to our pensions are included as a component of operating income in our Condensed Consolidated Statements of Operations. For the quarters ended June 30, 2023 and 2022, amounts unrelated to service costs were a charge of $ 1.0 million and $ 0.9 million, respectively. For the six months ended June 30, 2023 and 2022, amounts unrelated to service costs were a charge of $ 2.0 million and $ 1.9 million, respectively. Contributions We generally fund our U.S. non-qualified defined benefit retirement plans when benefit payments are incurred. We contributed approximately $ 0.4 million in the first six months of 2023 to cover unfunded benefits. We expect to contribute a total of $ 1.5 million in 2023 to cover unfunded benefits. Contributions to our European defined benefit retirement plans during the six months ended June 30, 2023 and 2022 were not material. We plan to contribute approximately $ 0.7 million during 2023 to our European plans. . Postretirement Health Care and Life Insurance Benefit Plans We recorded $ 0.5 million of net amortization gain deferral for both the six months ended June 30, 2023 and 2022. Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the six months ended June 30, 2023 and 2022 were immaterial. (In millions) June 30, 2023 December 31, 2022 Amounts recognized on the balance sheet: Accrued liabilities $ 0.2 $ 0.2 Other non-current liabilities 1.0 1.0 Total accrued benefit $ 1.2 $ 1.2 Amounts contributed in connection with our postretirement plans were immaterial for both the six months ended June 30, 2023 and 2022. We periodically fund our postretirement plans to pay covered expenses as they are incurred. We expect to contribute less than $ 0.2 million in 2023 to cover unfunded benefits. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Note 5 –– Debt (In millions) June 30, 2023 December 31, 2022 Current portion of finance lease $ 0.1 $ 0.2 Current portion of debt 0.1 0.2 Senior unsecured credit facility 80.0 25.0 4.7 % senior notes --- due 2025 300.0 300.0 3.95 % senior notes --- due 2027 400.0 400.0 Senior notes --- original issue discount ( 0.8 ) ( 0.9 ) Senior notes --- deferred financing costs ( 1.9 ) ( 2.2 ) Non-current portion of finance lease and other debt 1.7 1.4 Long-term debt 779.0 723.3 Total debt $ 779.1 $ 723.5 On April 25, 2023 , the Company entered into a new credit agreement (the “Credit Agreement”) to refinance its senior unsecured revolving credit facility (the “Facility”). Under the terms of the Credit Agreement the borrowing capacity will remain at $ 750 million. The Facility matures in April 2028 . In connection with the refinancing, the Company incurred approximately $ 2.5 million in financing costs which were deferred and will be amortized over the life of the Facility. Borrowings under the Facility will bear interest, at the Company’s option, for Secured Overnight Financing Rate ("SOFR") borrowings at (i) an Adjusted Term SOFR rate (subject to a 0.00% floor), where such “Adjusted Term SOFR” rate is equal to the Term SOFR rate for the applicable interest period plus 0.10 %, plus the Applicable Margin or (ii) for base rate borrowings, the greatest of (a) the prime rate, (b) the federal funds rate plus 0.50 % and (c) the Adjusted Term SOFR rate (subject to a 0.00% floor) for a one-month interest period plus 1.00 %, in each case plus the Applicable Margin. The “Applicable Margin” initially is 1.125% for SOFR rate borrowings and 0.125 % for base rate borrowings, and after September 30, 2023, can fluctuate, determined by reference to the more favorable to the Company of its (i) public debt rating and (ii) consolidated leverage ratio, as specified in the Credit Agreement. Up to $ 50 million of the Facility may be used for letters of credit. The Credit Agreement enables the Company, from time to time, to add term loans or to increase the revolving credit commitment in an aggregate amount not to exceed $ 500 million . The Credit Agreement contains customary covenants that place restrictions on, among other things, the incurrence of debt by any subsidiaries of the Company, granting of liens and sale of all or substantially all of the assets of the Company and its subsidiaries taken as a whole. The Credit Agreement also contains financial covenants that require the Company to maintain a minimum interest coverage ratio and a maximum consolidated net leverage ratio. As of June 30, 2023, the Company was in compliance with all debt covenants. As of June 30, 2023, total borrowings under the Facility were $ 80 million, which approximated fair value. Outstanding letters of credit reduce the amount available for borrowing under the Facility. As of June 30, 2023, there were no issued letters of credit under the Facility, resulting in undrawn availability under the Facility of $ 670 million. The weighted average interest rate for the Facility was 6.0 % for the six months ended June 30, 2023. In 2017, the Company issued $ 400 million in aggregate principal amount of 3.95 % Senior Unsecured Notes due in 2027 . The interest rate on these senior notes may be increased 0.25 % each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 5.95 %. The effective interest rate for the six months ended June 30, 2023 was 4.0 % inclusive of an approximately 0.25 % benefit of treasury locks. Based on quoted prices the fair value of th e senior unsecured notes due in 2027 was $ 377.8 million at June 30, 2023. In 2015, the Company issued $ 300 million in aggregate principal amount of 4.7 % Senior Unsecured Notes due in 2025 . The interest rate on these senior notes may be increased by 0.25 % each time a credit rating applicable to the notes is downgraded. Conversely, such increases would be reversed should the credit rating be subsequently upgraded. The maximum rate is 6.7 %. The effective interest rate for the six months ended June 30, 2023 was 4.9 %. Based on quoted prices, the fair value of the senior unsecured notes due in 2025 was $ 293.3 million at June 30, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 6 — Derivative Financial Instruments Interest Rate Swap and Interest Lock Agreements At June 30, 2023 and December 31, 2022, we had no interest rate swap agreements outstanding. The Company had treasury lock agreements, designated as cash flow hedges, to protect against unfavorable movements in the benchmark treasury rate related to the issuance of our senior unsecured notes. As part of the issuance of our senior notes, we net settled these derivatives for $ 10 million in cash and the deferred gains recorded in other comprehensive income (loss) will be released to interest expense over the life of the senior notes. The effect of these settled treasury locks reduces the effective interest rate on the senior notes by approximately 0.25 %. Cross Currency and Interest Rate Swap Agreements In November 2020, we entered into a cross currency and interest rate swap, which is designated as a cash flow hedge of a € 270 million, 5 -year amortizing, intercompany loan between one of our European subsidiaries and the U.S. parent company. Changes in the spot exchange rates are recorded to the general ledger and offset the fair value re-measurement of the hedged item. The net difference in the interest rates coupons is recorded as a credit to interest expense. The derivative swaps € 270 million bearing interest at a fixed rate of 0.30 % for $ 319.9 million at a fixed rate interest of 1.115 %. The interest coupons settle semi-annually . The principal will amortize each year on November 15, as follows: for years 1 through 4, beginning November 15, 2021, € 50 million versus $ 59.2 million, and a final settlement on November 15, 2025 of € 70 million versus $ 82.9 million. Foreign Currency Forward Exchange Contracts A number of our European subsidiaries are exposed to the impact of exchange rate volatility between the U.S. dollar and the subsidiaries’ functional currencies, being either the Euro or the British pound sterling. We have entered into contracts to exchange U.S. dollars for Euros and British pound sterling through December 2025. The aggregate notional amount of these contracts was $ 433.9 million and $ 503.3 million at June 30, 2023 and December 31, 2022, respectively. The purpose of these contracts is to hedge a portion of the forecasted transactions of our European subsidiaries under long-term sales contracts with certain customers. These contracts are expected to provide us with a more balanced matching of future cash receipts and expenditures by currency, thereby reducing our exposure to fluctuations in currency exchange rates. The effective portion of the hedges, gains of $ 4.3 million and $ 8.3 million were recorded in other comprehensive income (loss) for the quarter and six months ended June 30, 2023, respectively, and losses of $ 21.6 million and $ 28.4 million were recorded for the quarter and six months ended June 30, 2022, respectively. We recognized losses of $ 2.6 million and $ 6.3 million in gross margin during the quarter and six months ended June 30, 2023, respectively, and losses of $ 3.6 million and $ 4.3 million for the quarter and six months ended June 30, 2022, respectively. In addition, we enter into foreign exchange forward contracts which are not designated as hedges. These are used to provide an offset to transactional gains or losses arising from the remeasurement of non-functional monetary assets and liabilities such as accounts receivable. The change in the fair value of the derivatives is recorded in the statement of operations. There are no credit contingency features in these derivatives. During the quarter and six months ended June 30, 2023, we recognized net foreign exchange losses of $ 0.1 million and gains of $ 0.3 million, respectively, in the Condensed Consolidated Statements of Operations. During the quarter and six months ended June 30, 2023, we recognized net foreign exchange losses of $ 0.8 million and $ 1.0 million, respectively. The net foreign exchange impact recognized from these hedges offset the translation exposure of these transactions. The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2023 and June 30, 2022 was as follows: Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Unrealized losses at beginning of period, net of tax $ ( 4.8 ) $ ( 8.0 ) $ ( 10.5 ) $ ( 3.5 ) Losses reclassified to net sales 2.0 2.8 4.7 3.1 Increase (decrease) in fair value 3.2 ( 16.5 ) 6.2 ( 21.3 ) Unrealized gains (losses) at end of period, net of tax $ 0.4 $ ( 21.7 ) $ 0.4 $ ( 21.7 ) Unrealized gains of $ 3.3 million recorded in accumulated other comprehensive loss, less taxes of $ 0.9 million, as of June 30, 2023, are expected to be reclassified into earnings over the next twelve months as the hedged sales are recorded. Commodity Swap Agreements On occasion we enter into commodity swap agreements to hedge against price fluctuations of raw materials, including propylene (the principal component of acrylonitrile). As of June 30, 2023, we had commodity swap agreements with a notional value of $ 18.4 million. The swaps mature monthly through June 2025. The swaps are accounted for as a cash flow hedge of our forward raw material purchases. To ensure the swaps are highly effective, all of the critical terms of the swap matched the terms of the hedged items. The fair values of outstanding derivative financial instruments as of June 30, 2023 and December 31, 2022 were as follows: Prepaid and Other Current Assets Other Assets Current Liabilities Non-Current Liabilities (In millions) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Derivative Products Foreign currency forward exchange contracts $ 3.7 $ 1.9 $ 4.8 $ 3.4 $ 7.0 $ 14.1 $ 0.9 $ 5.3 Undesignated hedges - - - - 0.8 0.7 - - Commodity swaps 0.1 0.5 - - 5.9 7.2 0.8 1.4 Cross currency and interest rate swap 5.6 6.2 8.0 10.1 - - - - Total Derivative Products $ 9.4 $ 8.6 $ 12.8 $ 13.5 $ 13.7 $ 22.0 $ 1.7 $ 6.7 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 — Fair Value Measurements The authoritative guidance for fair value measurements establishes a hierarchy for observable and unobservable inputs used to measure fair value, into three broad levels, which are described below: • Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. • Level 2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data. • Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider our own and counterparty credit risk in our assessment of fair value. We have no assets or liabilities that utilize Level 1 inputs. However, we have derivative instruments classified as liabilities and assets which utilize Level 2 inputs, and one liability that utilizes Level 3 inputs. For derivative assets and liabilities that utilize Level 2 inputs, we prepare estimates of future cash flows of our derivatives, which are discounted to a net present value. The estimated cash flows and the discount factors used in the valuation model are based on observable inputs and incorporate non-performance risk (the credit standing of the counterparty when the derivative is in a net asset position, and the credit standing of Hexcel when the derivative is in a net liability position). For further information on the fair value of our derivative financial instruments see Note 6, Derivative Financial Instruments. In addition, the fair value of these derivative contracts, which are subject to a master netting arrangement under certain circumstances, is presented on a gross basis in the Condensed Consolidated Balance Sheets. Below is a summary of valuation techniques for all Level 2 financial assets and liabilities: • Cross Currency and Interest Rate Swap Agreements — valued using the USD Secured Overnight Financing Rate curves and quoted forward foreign exchange prices at the reporting date. • Foreign exchange derivative assets and liabilities — valued using quoted forward foreign exchange prices at the reporting date. • Commodity swap agreements — valued using quoted forward commodity prices at the reporting date. Counterparties to the above contracts are highly rated financial institutions, none of which experienced any significant downgrades in the quarter ended June 30, 2023 that would reduce the receivable amount owed, if any, to the Company. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Note 8 — Revenue Our revenue is primarily derived from the sale of inventory under long-term contracts with our customers. We have determined that individual purchase orders (“PO”), the terms and conditions of which are taken with a master agreement, create the ASC 606 contracts, which are generally short-term in nature. For those sales that are not tied to a long-term agreement, we generate a PO that is subject to our standard terms and conditions. In instances where our customers acquire our goods related to government contracts, the contracts are typically subject to terms similar, or equal to, the Federal Acquisition Regulation Part 52.249-2. This regulation contains a termination for convenience clause (“T for C”), which requires that the customer pay for the cost of both the finished and unfinished goods at the time of cancellation plus a reasonable profit. We recognize revenue over time for those agreements that have T for C, and where the products being produced have no alternative use. As our production cycle is typically nine months or less, it is expected that goods related to the revenue recognized over time will be shipped and billed within the next twelve months. Less than half of our agreements contain provisions which would require revenue to be recognized over time. All other revenue is recognized at a point in time. We disaggregate our revenue based on market for analytical purposes. The following table details our revenue by market for the quarters and six months ended June 30, 2023 and 2022: Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Consolidated Net Sales $ 454.3 $ 393.0 $ 912.0 $ 783.6 Commercial Aerospace 264.3 227.6 548.8 446.5 Space & Defense 137.5 111.9 263.7 230.1 Industrial 52.5 53.5 99.5 107.0 Revenue recognized over time gives rise to contract assets, which represent revenue recognized but unbilled. Contract assets are included in our Condensed Consolidated Balance Sheets as a component of current assets. The activity related to contract assets for the six months ended June 30, 2023 was as follows: (In millions) Composite Material Engineered Products Total Balance at December 31, 2022 $ 9.1 $ 22.9 $ 32.0 Net revenue billed ( 2.5 ) ( 0.9 ) ( 3.4 ) Balance at March 31, 2023 6.6 22.0 28.6 Net revenue billed $ 0.4 $ ( 1.8 ) ( 1.4 ) Balance at June 30, 2023 $ 7.0 $ 20.2 $ 27.2 Accounts receivable, net, includes amounts billed to customers where the right to payment is unconditional. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Note 9 — Segment Information The financial results for our operating segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our operating segments based on operating income, and generally account for intersegment sales based on arm’s length prices. Corporate and certain other expenses are not allocated to the operating segments, except to the extent that the expense can be directly attributable to the business segment. Financial information for our operating segments for the quarters and six months ended June 30, 2023 and 2022 were as follows: (Unaudited) Composite Engineered Corporate & (In millions) Materials Products Other (a) Total Quarter Ended June 30, 2023 Net sales to external customers $ 378.5 $ 75.8 $ — $ 454.3 Intersegment sales 18.5 0.5 ( 19.0 ) — Total sales $ 397.0 $ 76.3 $ ( 19.0 ) $ 454.3 Other operating expense 0.3 0.2 — 0.5 Operating income (loss) 64.2 6.8 ( 9.7 ) 61.3 Depreciation and amortization 27.5 3.5 — 31.0 Stock-based compensation 1.1 0.3 1.4 2.8 Accrual basis additions to capital expenditures 12.9 40.8 — 53.7 Quarter Ended June 30, 2022 Net sales to external customers $ 318.1 $ 74.9 $ — $ 393.0 Intersegment sales 18.5 1.0 ( 19.5 ) — Total sales $ 336.6 $ 75.9 $ ( 19.5 ) $ 393.0 Other operating expense (income) 0.3 — ( 19.4 ) ( 19.1 ) Operating income 47.2 9.1 7.5 63.8 Depreciation and amortization 28.1 3.5 0.1 31.7 Stock-based compensation 0.9 0.3 1.2 2.4 Accrual basis additions to capital expenditures 14.5 2.7 — 17.2 Six Months Ended June 30, 2023 Net sales to external customers $ 756.7 $ 155.3 $ — $ 912.0 Intersegment sales 37.8 1.5 ( 39.3 ) — Total sales $ 794.5 $ 156.8 $ ( 39.3 ) $ 912.0 Other operating expense 0.5 0.2 — 0.7 Operating income (loss) 137.4 18.8 ( 32.1 ) 124.1 Depreciation and amortization 54.7 7.0 — 61.7 Stock-based compensation 4.2 1.1 10.4 15.7 Accrual basis additions to capital expenditures 26.0 44.5 — 70.5 Six Months Ended June 30, 2022 Net sales to external customers $ 631.9 $ 151.7 $ — $ 783.6 Intersegment sales 35.0 1.3 ( 36.3 ) — Total sales $ 666.9 $ 153.0 $ ( 36.3 ) $ 783.6 Other operating expense (income) 1.2 0.1 ( 19.4 ) ( 18.1 ) Operating income (loss) 89.8 19.7 ( 15.6 ) 93.9 Depreciation and amortization 56.7 7.1 0.1 63.9 Stock-based compensation 3.5 1.0 8.3 12.8 Accrual basis additions to capital expenditures 24.6 3.7 — 28.3 (a) We do not allocate corporate expenses to the operating segments. Goodwill and Intangible Assets Composite Engineered (In millions) Materials Products Total Balance at December 31, 2022 $ 86.9 $ 169.1 $ 256.0 Amortization expense ( 0.5 ) ( 1.3 ) ( 1.8 ) Currency translation adjustments 1.2 ( 1.2 ) — Balance at June 30, 2023 $ 87.6 $ 166.6 $ 254.2 At June 30, 2023, the balance of goodwill and intangible assets was $ 188.3 million and $ 65.9 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 10 — Accumulated Other Comprehensive Loss Comprehensive loss represents net loss and other gains and losses affecting stockholders’ equity that are not reflected in the Condensed Consolidated Statements of Operations. The components of accumulated other comprehensive loss as of June 30, 2023 and December 31, 2022 were as follows: (In millions) Unrecognized Change in Fair Foreign Total Balance at December 31, 2022 $ ( 49.1 ) $ ( 15.4 ) $ ( 109.9 ) $ ( 174.4 ) Other comprehensive (loss) income before reclassifications ( 1.8 ) 7.8 18.1 24.1 Amounts reclassified from accumulated other comprehensive loss 0.8 4.3 — 5.1 Other comprehensive (loss) income ( 1.0 ) 12.1 18.1 29.2 Balance at June 30, 2023 $ ( 50.1 ) $ ( 3.3 ) $ ( 91.8 ) $ ( 145.2 ) (1) Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps . The amount of net (gains) losses reclassified to earnings from the unrecognized net defined benefit and postretirement plan costs and derivative products components of accumulated other comprehensive loss for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarter Ended June 30, 2023 Quarter Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (In millions) Pre-tax (gain) loss Net of tax (gain) loss Pre-tax (gain) loss Net of tax (gain) loss Pre-tax (gain) loss Net of tax (gain) loss Pre-tax (gain) loss Net of tax (gain) loss Defined Benefit and Postretirement Plan Costs $ 0.5 $ 0.4 $ 0.6 $ 0.5 $ 1.0 $ 0.8 $ 1.1 $ 0.8 Derivative Products Foreign currency forward exchange contracts 2.6 1.9 3.6 2.7 6.3 4.6 4.3 3.1 Commodity swaps 1.8 1.4 ( 0.3 ) ( 0.2 ) 2.7 2.1 ( 1.1 ) ( 0.8 ) Interest rate swaps ( 1.1 ) ( 0.8 ) 2.5 1.9 ( 3.2 ) ( 2.4 ) ( 5.0 ) ( 3.9 ) Total Derivative Products $ 3.3 $ 2.5 $ 5.8 $ 4.4 $ 5.8 $ 4.3 $ ( 1.8 ) $ ( 1.6 ) |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 — Commit ments and Contingencies We are involved in litigation, investigations and claims arising out of the normal conduct of our business, including those relating to commercial transactions, environmental, employment and health and safety matters. While it is impossible to predict the ultimate resolution of litigation, investigations and claims asserted against us , we believe, based upon our examination of currently available information, our experience to date, and advice from legal counsel, that, after taking into account our existing insurance coverage and amounts already provided for, the currently pending legal proceedings against us will not have a material adverse impact on our consolidated results of operations, financial position or cash flows . Environmental Matters We have been named as a potentially responsible party (“PRP”) with respect to the below and other hazardous waste disposal sites that we do not own or possess, which are included on, or proposed to be included on, the Superfund National Priority List of the U.S. Environmental Protection Agency (“EPA”) or on equivalent lists of various state governments. Because the Federal Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” or “Superfund”) allows for joint and several liability in certain circumstances, we could be responsible for all remediation costs at such sites, even if we are one of many PRPs. We believe, based on the amount and nature of the hazardous waste at issue, and the number of other financially viable PRPs at each site, that our liability in connection with such environmental matters will not be material . Lower Passaic River Study Area Hexcel together with approximately 48 other PRPs that comprise the Lower Passaic Cooperating Parties Group (the “CPG”), are subject to a May 2007 Administrative Order on Consent (“AOC”) with the EPA requiring the CPG to perform a Remedial Investigation/Feasibility Study of environmental conditions of a 17 -mile stretch of the Passaic River in New Jersey (the “Lower Passaic River”). We were included in the CPG based on our operations at our former manufacturing site in Lodi, New Jersey. In March 2016, the EPA issued a Record of Decision (“ROD”) setting forth the EPA’s selected remedy for the lower eight miles of the Lower Passaic River at an expected cost ranging from $ 0.97 billion to $ 2.07 billion. In August 2017, the EPA appointed an independent third-party allocation expert to make recommendations on the relative liability of approximately 120 identified non-government PRPs for the lower eight miles of the Lower Passaic River. In December 2020, the allocator issued its non-binding report on PRP liability (including Hexcel’s) to the EPA. In October 2021, the EPA released a ROD selecting an interim remedy for the upper nine miles of the Lower Passaic River at an expected additional cost ranging from $ 308.7 million to $ 661.5 million. In October 2016, pursuant to a settlement agreement with the EPA, Occidental Chemical Corporation (“OCC”), one of the PRPs, commenced performance of the remedial design required by the ROD for the lower eight miles of the Lower Passaic River, reserving its right of cost contribution from all other PRPs. In June 2018, OCC filed suit against approximately 120 parties, including Hexcel, in the U.S. District Court of the District of New Jersey seeking cost recovery and contribution under CERCLA related to the Lower Passaic River. In July 2019, the court granted in part and denied in part the defendants’ motion to dismiss. In August 2020, the court granted defendants’ motion for summary judgement for certain claims. Discovery for the remaining claims has been stayed indefinitely based on agreement of the parties. On February 24, 2021, Hexcel and certain other defendants filed a third-party complaint against the Passaic Valley Sewerage Commission and certain New Jersey municipalities seeking recovery of Passaic-related cleanup costs incurred by defendants, as well as contribution for any cleanup costs incurred by OCC for which the court deems the defendants liable. In March 2023, the EPA issued a Unilateral Administrative Order (“UAO”) to OCC ordering OCC to commence remedial design work for the interim remedy for the cleanup of the upper nine miles of the Lower Passaic River. On March 24, 2023, OCC filed suit against Hexcel and approximately 38 other parties claiming cost recovery under CERCLA for future costs related to its compliance with the UAO. On December 16, 2022, the EPA lodged a Consent Decree with the U.S. District Court for the District of New Jersey requesting court approval of a $ 150 million settlement of the EPA’s CERCLA claims against Hexcel and 83 other PRPs for costs related to alleged contamination of the upper and lower portions of the Lower Passaic River. The 84 PRPs have collectively placed $ 150 million in escrow, pending District Court approval of the Consent Decree. A public comment period which allowed interested parties to provide additional evidence and make arguments in support or opposition to the Consent Decree has concluded. Hexcel is unable to estimate when or if the District Court will approve the Consent Decree. Summary of Environmental Reserves Our estimate of liability as a PRP and our remaining costs associated with our responsibility to remediate the Lower Passaic River and other sites are accrued in the Consolidated Balance Sheets. As of June 30, 2023 and December 31, 2022, our aggregate environmental related accruals were $ 0.6 million and $ 0.8 million, respectively. These amounts were included in non-current liabilities. These accruals can change significantly from period to period due to such factors as additional information on the nature or extent of contamination, the methods of remediation required, changes in the apportionment of costs among responsible parties and other actions by governmental agencies or private parties, or the impact, if any, of being named in a new matter. Product Warranty We provide standard assurance-type warranties for our products, which cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Warranty expense for the six months ended June 30, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022, were as follows: Product (In millions) Warranties Balance as of December 31, 2022 $ 3.1 Warranty expense 1.6 Deductions and other ( 1.2 ) Balance as of March 31, 2023 $ 3.5 Warranty expense 2.2 Deductions and other ( 0.9 ) Balance as of June 30, 2023 $ 4.8 |
Restructuring
Restructuring | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Note 12 — Restructuring We recognized restructuring charges of $ 0.5 million and $ 0.7 million for the quarter and six months ended June 30, 2023, respectively, primarily related to severance. Anticipated future cash payments as of June 30, 2023 were $ 1.5 million. Activity for the Quarter Ended June 30, 2023 March 31, Restructuring Cash June 30, (In Millions) 2023 Charge FX Impact Paid Non-Cash 2023 Employee termination $ 3.3 $ 0.2 $ — $ ( 2.0 ) $ — $ 1.5 Impairment and other — 0.3 — — ( 0.3 ) — Total $ 3.3 $ 0.5 $ — $ ( 2.0 ) $ ( 0.3 ) $ 1.5 Activity for the Six Months Ended June 30, 2023 December 31, Restructuring Cash June 30, (In Millions) 2022 Charge FX Impact Paid Non-Cash 2023 Employee termination $ 5.4 $ 0.4 $ — $ ( 4.3 ) $ — $ 1.5 Impairment and other — 0.3 — — ( 0.3 ) — Total $ 5.4 $ 0.7 $ — $ ( 4.3 ) $ ( 0.3 ) $ 1.5 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared from the unaudited accounting records of Hexcel pursuant to rules and regulations of the Securities and Exchange Commission (“SEC”) and in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Certain information and footnote disclosures normally included in financial statements have been omitted pursuant to rules and regulations of the SEC. In the opinion of management, the condensed consolidated financial statements include all normal recurring adjustments as well as any non-recurring adjustments necessary to present fairly the statement of financial position, results of operations, cash flows and statement of stockholders’ equity for the interim periods presented. The Condensed Consolidated Balance Sheet as of December 31, 2022 was derived from the audited 2022 consolidated balance sheet. Interim results are not necessarily indicative of results expected for any other interim period or for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our 2022 Annual Report on Form 10-K. |
Investments in Affiliated Companies | Investments in Affiliated Companies We have a 50 % equity investment in Aerospace Composites Malaysia Sdn. Bhd. This investment is accounted for using the equity method of accounting. |
Assets Held for Sale | Assets Held for Sale In November 2020, we closed our wind energy prepreg production facility in Windsor, Colorado. The plant assets to be sold were recorded in “Assets held for sale” in the Consolidated Balance Sheets at both June 30, 2023 and December 31, 2022. On July 10, 2023, we finalized the sale of the Windsor facility for approximately $ 11 million. The sale will be recorded in the third quarter of 2023 and will be reflected in the Company's financial statements for the quarter ended September 30, 2023. |
Net Income (Loss) Per Common _2
Net Income (Loss) Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share Basic and Diluted | Quarter Ended June 30, Six Months Ended June 30, (In millions, except per share data) 2023 2022 2023 2022 Basic net income per common share: Net income $ 42.5 $ 44.7 $ 85.2 $ 62.5 Weighted average common shares outstanding 84.7 84.4 84.6 84.3 Basic net income per common share $ 0.50 $ 0.53 $ 1.01 $ 0.74 Diluted net income per common share: Net income $ 42.5 $ 44.7 85.2 62.5 Weighted average common shares outstanding — Basic 84.7 84.4 84.6 84.3 Plus incremental shares from assumed conversions: Restricted stock units 0.5 0.4 0.5 0.4 Stock options 0.4 0.2 0.4 0.2 Weighted average common shares outstanding — Dilutive 85.6 85.0 85.5 84.9 Diluted net income per common share $ 0.50 $ 0.53 $ 1.00 $ 0.74 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In millions) June 30, 2023 December 31, 2022 Raw materials $ 166.4 $ 153.3 Work in progress $ 53.1 42.8 Finished goods $ 141.4 123.2 Total Inventory $ 360.9 $ 319.3 |
Retirement and Other Postreti_2
Retirement and Other Postretirement Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Defined Benefit Retirement Plans | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans | Net periodic benefit costs of our defined benefit retirement plans for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 U.S. Nonqualified Defined Benefit Retirement Plans Service cost $ 0.3 $ 0.3 $ 0.6 $ 0.6 Interest cost 0.1 0.1 0.2 0.2 Net amortization 0.2 0.2 0.4 0.4 Net periodic benefit cost $ 0.6 $ 0.6 $ 1.2 $ 1.2 |
Schedule of Amounts Recognized on Balance Sheet | (In millions) June 30, 2023 December 31, 2022 Amounts recognized on the balance sheet for U.S. nonqualified defined benefit retirement plans: Accrued liabilities $ 1.3 $ 1.4 Other non-current liabilities 19.2 18.5 Total accrued benefit $ 20.5 $ 19.9 |
Defined Benefit Retirement Plans | Non qualified | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans | Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 European Defined Benefit Retirement Plans Service cost $ 0.1 $ 0.2 $ 0.3 $ 0.4 Interest cost 1.3 0.5 2.5 1.1 Expected return on plan assets ( 1.2 ) ( 0.5 ) ( 2.4 ) ( 1.1 ) Net amortization and deferral 0.6 0.6 1.2 1.2 Net periodic benefit cost $ 0.8 $ 0.8 $ 1.6 $ 1.6 |
Schedule of Amounts Recognized on Balance Sheet | (In millions) June 30, 2023 December 31, 2022 Amounts recognized on the balance sheet for European defined benefit retirement plans: Other assets $ 6.3 $ 5.6 Accrued liabilities 1.3 0.1 Other non-current liabilities 13.0 12.1 Total accrued benefit $ 14.4 $ 12.2 |
Postretirement Health Care and Life Insurance Benefit Plans | |
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Amounts Recognized on Balance Sheet | Net periodic benefit costs of our postretirement health care and life insurance benefit plans for the six months ended June 30, 2023 and 2022 were immaterial. (In millions) June 30, 2023 December 31, 2022 Amounts recognized on the balance sheet: Accrued liabilities $ 0.2 $ 0.2 Other non-current liabilities 1.0 1.0 Total accrued benefit $ 1.2 $ 1.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt and Capital Lease Obligations | (In millions) June 30, 2023 December 31, 2022 Current portion of finance lease $ 0.1 $ 0.2 Current portion of debt 0.1 0.2 Senior unsecured credit facility 80.0 25.0 4.7 % senior notes --- due 2025 300.0 300.0 3.95 % senior notes --- due 2027 400.0 400.0 Senior notes --- original issue discount ( 0.8 ) ( 0.9 ) Senior notes --- deferred financing costs ( 1.9 ) ( 2.2 ) Non-current portion of finance lease and other debt 1.7 1.4 Long-term debt 779.0 723.3 Total debt $ 779.1 $ 723.5 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations | The change in fair value of our foreign currency forward exchange contracts under hedge designations recorded net of tax within accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2023 and June 30, 2022 was as follows: Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Unrealized losses at beginning of period, net of tax $ ( 4.8 ) $ ( 8.0 ) $ ( 10.5 ) $ ( 3.5 ) Losses reclassified to net sales 2.0 2.8 4.7 3.1 Increase (decrease) in fair value 3.2 ( 16.5 ) 6.2 ( 21.3 ) Unrealized gains (losses) at end of period, net of tax $ 0.4 $ ( 21.7 ) $ 0.4 $ ( 21.7 ) |
Schedule of Fair Values of Outstanding Financial Instruments | The fair values of outstanding derivative financial instruments as of June 30, 2023 and December 31, 2022 were as follows: Prepaid and Other Current Assets Other Assets Current Liabilities Non-Current Liabilities (In millions) June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022 Derivative Products Foreign currency forward exchange contracts $ 3.7 $ 1.9 $ 4.8 $ 3.4 $ 7.0 $ 14.1 $ 0.9 $ 5.3 Undesignated hedges - - - - 0.8 0.7 - - Commodity swaps 0.1 0.5 - - 5.9 7.2 0.8 1.4 Cross currency and interest rate swap 5.6 6.2 8.0 10.1 - - - - Total Derivative Products $ 9.4 $ 8.6 $ 12.8 $ 13.5 $ 13.7 $ 22.0 $ 1.7 $ 6.7 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue By Market | The following table details our revenue by market for the quarters and six months ended June 30, 2023 and 2022: Quarter Ended June 30, Six Months Ended June 30, (In millions) 2023 2022 2023 2022 Consolidated Net Sales $ 454.3 $ 393.0 $ 912.0 $ 783.6 Commercial Aerospace 264.3 227.6 548.8 446.5 Space & Defense 137.5 111.9 263.7 230.1 Industrial 52.5 53.5 99.5 107.0 |
Schedule of Activity Related to Contract Assets | The activity related to contract assets for the six months ended June 30, 2023 was as follows: (In millions) Composite Material Engineered Products Total Balance at December 31, 2022 $ 9.1 $ 22.9 $ 32.0 Net revenue billed ( 2.5 ) ( 0.9 ) ( 3.4 ) Balance at March 31, 2023 6.6 22.0 28.6 Net revenue billed $ 0.4 $ ( 1.8 ) ( 1.4 ) Balance at June 30, 2023 $ 7.0 $ 20.2 $ 27.2 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment Reporting Information | Financial information for our operating segments for the quarters and six months ended June 30, 2023 and 2022 were as follows: (Unaudited) Composite Engineered Corporate & (In millions) Materials Products Other (a) Total Quarter Ended June 30, 2023 Net sales to external customers $ 378.5 $ 75.8 $ — $ 454.3 Intersegment sales 18.5 0.5 ( 19.0 ) — Total sales $ 397.0 $ 76.3 $ ( 19.0 ) $ 454.3 Other operating expense 0.3 0.2 — 0.5 Operating income (loss) 64.2 6.8 ( 9.7 ) 61.3 Depreciation and amortization 27.5 3.5 — 31.0 Stock-based compensation 1.1 0.3 1.4 2.8 Accrual basis additions to capital expenditures 12.9 40.8 — 53.7 Quarter Ended June 30, 2022 Net sales to external customers $ 318.1 $ 74.9 $ — $ 393.0 Intersegment sales 18.5 1.0 ( 19.5 ) — Total sales $ 336.6 $ 75.9 $ ( 19.5 ) $ 393.0 Other operating expense (income) 0.3 — ( 19.4 ) ( 19.1 ) Operating income 47.2 9.1 7.5 63.8 Depreciation and amortization 28.1 3.5 0.1 31.7 Stock-based compensation 0.9 0.3 1.2 2.4 Accrual basis additions to capital expenditures 14.5 2.7 — 17.2 Six Months Ended June 30, 2023 Net sales to external customers $ 756.7 $ 155.3 $ — $ 912.0 Intersegment sales 37.8 1.5 ( 39.3 ) — Total sales $ 794.5 $ 156.8 $ ( 39.3 ) $ 912.0 Other operating expense 0.5 0.2 — 0.7 Operating income (loss) 137.4 18.8 ( 32.1 ) 124.1 Depreciation and amortization 54.7 7.0 — 61.7 Stock-based compensation 4.2 1.1 10.4 15.7 Accrual basis additions to capital expenditures 26.0 44.5 — 70.5 Six Months Ended June 30, 2022 Net sales to external customers $ 631.9 $ 151.7 $ — $ 783.6 Intersegment sales 35.0 1.3 ( 36.3 ) — Total sales $ 666.9 $ 153.0 $ ( 36.3 ) $ 783.6 Other operating expense (income) 1.2 0.1 ( 19.4 ) ( 18.1 ) Operating income (loss) 89.8 19.7 ( 15.6 ) 93.9 Depreciation and amortization 56.7 7.1 0.1 63.9 Stock-based compensation 3.5 1.0 8.3 12.8 Accrual basis additions to capital expenditures 24.6 3.7 — 28.3 (a) We do not allocate corporate expenses to the operating segments. |
Schedule of Goodwill and Intangible Assets by Segment | Goodwill and Intangible Assets Composite Engineered (In millions) Materials Products Total Balance at December 31, 2022 $ 86.9 $ 169.1 $ 256.0 Amortization expense ( 0.5 ) ( 1.3 ) ( 1.8 ) Currency translation adjustments 1.2 ( 1.2 ) — Balance at June 30, 2023 $ 87.6 $ 166.6 $ 254.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of June 30, 2023 and December 31, 2022 were as follows: (In millions) Unrecognized Change in Fair Foreign Total Balance at December 31, 2022 $ ( 49.1 ) $ ( 15.4 ) $ ( 109.9 ) $ ( 174.4 ) Other comprehensive (loss) income before reclassifications ( 1.8 ) 7.8 18.1 24.1 Amounts reclassified from accumulated other comprehensive loss 0.8 4.3 — 5.1 Other comprehensive (loss) income ( 1.0 ) 12.1 18.1 29.2 Balance at June 30, 2023 $ ( 50.1 ) $ ( 3.3 ) $ ( 91.8 ) $ ( 145.2 ) (1) Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps . |
Schedule of unrecognized net defined benefit and postretirement plan costs | The amount of net (gains) losses reclassified to earnings from the unrecognized net defined benefit and postretirement plan costs and derivative products components of accumulated other comprehensive loss for the quarters and six months ended June 30, 2023 and 2022 were as follows: Quarter Ended June 30, 2023 Quarter Ended June 30, 2022 Six Months Ended June 30, 2023 Six Months Ended June 30, 2022 (In millions) Pre-tax (gain) loss Net of tax (gain) loss Pre-tax (gain) loss Net of tax (gain) loss Pre-tax (gain) loss Net of tax (gain) loss Pre-tax (gain) loss Net of tax (gain) loss Defined Benefit and Postretirement Plan Costs $ 0.5 $ 0.4 $ 0.6 $ 0.5 $ 1.0 $ 0.8 $ 1.1 $ 0.8 Derivative Products Foreign currency forward exchange contracts 2.6 1.9 3.6 2.7 6.3 4.6 4.3 3.1 Commodity swaps 1.8 1.4 ( 0.3 ) ( 0.2 ) 2.7 2.1 ( 1.1 ) ( 0.8 ) Interest rate swaps ( 1.1 ) ( 0.8 ) 2.5 1.9 ( 3.2 ) ( 2.4 ) ( 5.0 ) ( 3.9 ) Total Derivative Products $ 3.3 $ 2.5 $ 5.8 $ 4.4 $ 5.8 $ 4.3 $ ( 1.8 ) $ ( 1.6 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty | We provide standard assurance-type warranties for our products, which cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Warranty expense for the six months ended June 30, 2023, and accrued warranty cost, included in “accrued liabilities” in the Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022, were as follows: Product (In millions) Warranties Balance as of December 31, 2022 $ 3.1 Warranty expense 1.6 Deductions and other ( 1.2 ) Balance as of March 31, 2023 $ 3.5 Warranty expense 2.2 Deductions and other ( 0.9 ) Balance as of June 30, 2023 $ 4.8 |
Restructuring (Tables)
Restructuring (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring | Activity for the Quarter Ended June 30, 2023 March 31, Restructuring Cash June 30, (In Millions) 2023 Charge FX Impact Paid Non-Cash 2023 Employee termination $ 3.3 $ 0.2 $ — $ ( 2.0 ) $ — $ 1.5 Impairment and other — 0.3 — — ( 0.3 ) — Total $ 3.3 $ 0.5 $ — $ ( 2.0 ) $ ( 0.3 ) $ 1.5 Activity for the Six Months Ended June 30, 2023 December 31, Restructuring Cash June 30, (In Millions) 2022 Charge FX Impact Paid Non-Cash 2023 Employee termination $ 5.4 $ 0.4 $ — $ ( 4.3 ) $ — $ 1.5 Impairment and other — 0.3 — — ( 0.3 ) — Total $ 5.4 $ 0.7 $ — $ ( 4.3 ) $ ( 0.3 ) $ 1.5 |
Significant Accounting Polici_3
Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | Jul. 10, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Significant Accounting Policies [Line Items] | |||
Assets held for sale | $ 9.5 | $ 9.5 | |
Carrying value asset held for sale | $ 11 | ||
Aerospace Composites Malaysia Sdn. Bhd. | |||
Significant Accounting Policies [Line Items] | |||
Interest in affiliated company, accounted for using equity method of accounting (as a percent) | 50% |
Net Income (Loss) Per Common _3
Net Income (Loss) Per Common Share - Summary of Earnings Per Share Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic net income (loss) per common share: | ||||||
Net income | $ 42.5 | $ 42.7 | $ 44.7 | $ 17.8 | $ 85.2 | $ 62.5 |
Weighted average common shares outstanding - Basic (in shares) | 84.7 | 84.4 | 84.6 | 84.3 | ||
Basic net income per common share | $ 0.50 | $ 0.53 | $ 1.01 | $ 0.74 | ||
Diluted net income per common share: | ||||||
Net income | $ 42.5 | $ 44.7 | $ 85.2 | $ 62.5 | ||
Weighted average common shares outstanding - Basic (in shares) | 84.7 | 84.4 | 84.6 | 84.3 | ||
Plus incremental shares from assumed conversions: | ||||||
Weighted average common shares outstanding - Dilutive (in shares) | 85.6 | 85 | 85.5 | 84.9 | ||
Diluted net income per common share | $ 0.50 | $ 0.53 | $ 1 | $ 0.74 | ||
Restricted Stock Units | ||||||
Plus incremental shares from assumed conversions: | ||||||
Incremental shares from assumed conversions | 0.5 | 0.4 | 0.5 | 0.4 | ||
Stock Options | ||||||
Plus incremental shares from assumed conversions: | ||||||
Incremental shares from assumed conversions | 0.4 | 0.2 | 0.4 | 0.2 |
Net Income (Loss) Per Common _4
Net Income (Loss) Per Common Share - Additional Information (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from computation of earnings per share amount (in shares) | 200 | 600 | 300 | 700 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 166.4 | $ 153.3 |
Work in progress | 53.1 | 42.8 |
Finished goods | 141.4 | 123.2 |
Total Inventory | $ 360.9 | $ 319.3 |
Retirement and Other Postreti_3
Retirement and Other Postretirement Benefit Plans - Schedule of Net Periodic Benefit Costs of Defined Benefit Retirement Plans (Details) - Defined Benefit Retirement Plans - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
U.S. | |||||
Net periodic benefit costs of defined benefit retirement plans | |||||
Service cost | $ 0.3 | $ 0.3 | $ 0.6 | $ 0.6 | |
Interest cost | 0.1 | 0.1 | 0.2 | 0.2 | |
Net amortization and deferral | 0.2 | 0.2 | 0.4 | 0.4 | |
Net periodic benefit cost | $ 0.6 | $ 0.6 | $ 1.2 | $ 1.2 | |
Defined Benefit Plan, Tax Status [Extensible List] | Non qualified | Non qualified | Non qualified | Non qualified | Non qualified |
European | |||||
Net periodic benefit costs of defined benefit retirement plans | |||||
Service cost | $ 0.1 | $ 0.2 | $ 0.3 | $ 0.4 | |
Interest cost | 1.3 | 0.5 | 2.5 | 1.1 | |
Expected return on plan assets | (1.2) | (0.5) | (2.4) | (1.1) | |
Net amortization and deferral | 0.6 | 0.6 | 1.2 | 1.2 | |
Net periodic benefit cost | $ 0.8 | $ 0.8 | $ 1.6 | $ 1.6 |
Retirement and Other Postreti_4
Retirement and Other Postretirement Benefit Plans - Schedule of Amounts Recognized on Balance Sheet (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Amounts recognized on the balance sheet: | |||||
Other non-current liabilities | $ 44.8 | $ 44.8 | $ 42.7 | ||
Defined Benefit Retirement Plans | U.S. | |||||
Amounts recognized on the balance sheet: | |||||
Accrued liabilities | 1.3 | 1.3 | 1.4 | ||
Other non-current liabilities | 19.2 | 19.2 | 18.5 | ||
Total accrued benefit | $ 20.5 | $ 20.5 | $ 19.9 | ||
Defined Benefit Plan, Tax Status [Extensible List] | Non qualified | Non qualified | Non qualified | Non qualified | Non qualified |
Defined Benefit Retirement Plans | European | |||||
Amounts recognized on the balance sheet: | |||||
Other assets | $ 6.3 | $ 6.3 | $ 5.6 | ||
Accrued liabilities | 1.3 | 1.3 | 0.1 | ||
Other non-current liabilities | 13 | 13 | 12.1 | ||
Total accrued benefit | 14.4 | 14.4 | 12.2 | ||
Postretirement Health Care and Life Insurance Benefit Plans | |||||
Amounts recognized on the balance sheet: | |||||
Accrued liabilities | 0.2 | 0.2 | 0.2 | ||
Other non-current liabilities | 1 | 1 | 1 | ||
Total accrued benefit | $ 1.2 | $ 1.2 | $ 1.2 |
Retirement and Other Postreti_5
Retirement and Other Postretirement Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Amounts recognized on the balance sheet: | |||||
Employer contribution to defined benefit retirement plans | $ 1.5 | ||||
Defined Benefit Retirement Plans | |||||
Amounts recognized on the balance sheet: | |||||
Amounts unrelated to service costs, benefit | $ 1 | $ 0.9 | 2 | $ 1.9 | |
Defined Benefit Retirement Plans | U.S. | |||||
Amounts recognized on the balance sheet: | |||||
Employer contribution to defined benefit retirement plans | $ 0.4 | ||||
Defined Benefit Plan, Tax Status [Extensible List] | Non qualified | Non qualified | Non qualified | Non qualified | Non qualified |
Net amortization gain deferral | $ (0.2) | $ (0.2) | $ (0.4) | $ (0.4) | |
Defined Benefit Retirement Plans | European | |||||
Amounts recognized on the balance sheet: | |||||
Expected employer contribution in full current year | 0.7 | 0.7 | |||
Net amortization gain deferral | (0.6) | $ (0.6) | (1.2) | (1.2) | |
Postretirement Health Care and Life Insurance Benefit Plans | |||||
Amounts recognized on the balance sheet: | |||||
Net amortization gain deferral | 0.5 | $ 0.5 | |||
Postretirement Health Care and Life Insurance Benefit Plans | Maximum | |||||
Amounts recognized on the balance sheet: | |||||
Expected employer contribution in full current year | $ 0.2 | $ 0.2 |
Debt - Schedule of Debt and Cap
Debt - Schedule of Debt and Capital Lease Obligations (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Current portion of finance lease | $ 0.1 | $ 0.2 |
Current portion of debt | 0.1 | 0.2 |
Long-term debt | 779 | 723.3 |
Non-current portion of finance lease and other debt | 1.7 | 1.4 |
Total debt | 779.1 | 723.5 |
Senior unsecured credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 80 | 25 |
4.7% senior notes due 2025 | ||
Debt Instrument [Line Items] | ||
Senior notes | 300 | 300 |
4.7% senior notes due 2025 and 3.95% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Senior notes --- original issue discount | (0.8) | (0.9) |
Senior notes --- deferred financing costs | (1.9) | (2.2) |
3.95% senior notes due 2027 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 400 | $ 400 |
Debt - Schedule of Debt and C_2
Debt - Schedule of Debt and Capital Lease Obligations (Parenthetical) (Details) | 6 Months Ended |
Jun. 30, 2023 | |
4.7% senior notes due 2025 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 4.70% |
Debt instrument, maturity year | 2025 |
3.95% senior notes due 2027 | |
Debt Instrument [Line Items] | |
Debt instrument, interest rate | 3.95% |
Debt instrument, maturity year | 2027 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Apr. 25, 2023 | Jun. 30, 2023 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||
Debt Instrument, Unused Borrowing Capacity, Description | Borrowings under the Facility will bear interest, at the Company’s option, for Secured Overnight Financing Rate ("SOFR") borrowings at (i) an Adjusted Term SOFR rate (subject to a 0.00% floor), where such “Adjusted Term SOFR” rate is equal to the Term SOFR rate for the applicable interest period plus 0.10%, plus the Applicable Margin or (ii) for base rate borrowings, the greatest of (a) the prime rate, (b) the federal funds rate plus 0.50% and (c) the Adjusted Term SOFR rate (subject to a 0.00% floor) for a one-month interest period plus 1.00%, in each case plus the Applicable Margin. The “Applicable Margin” initially is 1.125% for SOFR rate borrowings and 0.125% for base rate borrowings, and after September 30, 2023, can fluctuate, determined by reference to the more favorable to the Company of its (i) public debt rating and (ii) consolidated leverage ratio, as specified in the Credit Agreement. Up to $50 million of the Facility may be used for letters of credit. The Credit Agreement enables the Company, from time to time, to add term loans or to increase the revolving credit commitment in an aggregate amount not to exceed $500 million | ||||
Applicable Interest Period Plus | 0.10% | ||||
federal fund rate plus | 0.50% | ||||
Borrowings | $ 779 | $ 723.3 | |||
SOFR rate borrowings | 0.125% | ||||
SOFR | |||||
Debt Instrument [Line Items] | |||||
one-month interest period plus | 1% | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 2.5 | $ 500 | |||
Senior unsecured credit facility- revolving loan due 2021 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 750 | ||||
Senior unsecured credit facility- revolving loan due 2024 | |||||
Debt Instrument [Line Items] | |||||
Letters of credit issued under credit facility | 0 | ||||
Senior unsecured credit facility- revolving loan due 2024 | Facility Agreement Member | |||||
Debt Instrument [Line Items] | |||||
Borrowings | 80 | ||||
Undrawn availability under credit facility | $ 670 | ||||
Weighted average interest rate | 6% | ||||
Senior Unsecured Revolving Credit Facility Matures In April Two Thousand Twenty Eight [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 50 | ||||
Debt instrument expiration period | 2028-04 | ||||
3.95% senior unsecured notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Face value | $ 400 | ||||
Debt instrument, interest rate | 3.95% | ||||
Debt instrument, maturity year | 2027 | ||||
Increase in senior notes interest rate | 0.25% | ||||
Effective interest rate | 4% | ||||
3.95% senior unsecured notes due 2027 | Treasury Lock | Interest Lock Agreement | |||||
Debt Instrument [Line Items] | |||||
Percentage of effective interest rate benefit | 0.25% | ||||
3.95% senior unsecured notes due 2027 | Level 2 | |||||
Debt Instrument [Line Items] | |||||
Fair value of senior unsecured notes | $ 377.8 | ||||
3.95% senior unsecured notes due 2027 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 5.95% | ||||
4.7% senior unsecured notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Face value | $ 300 | ||||
Debt instrument, interest rate | 4.70% | ||||
Debt instrument, maturity year | 2025 | ||||
Increase in senior notes interest rate | 0.25% | ||||
Fair value of senior unsecured notes | $ 293.3 | ||||
4.7% senior unsecured notes due 2025 | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate | 6.70% | ||||
4.9% senior unsecured notes due 2025 | |||||
Debt Instrument [Line Items] | |||||
Effective interest rate | 4.90% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) CHE in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Nov. 30, 2020 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Item | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Nov. 30, 2020 CHE | Dec. 31, 2017 | |
Derivative [Line Items] | ||||||||
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months | $ 3.3 | $ 3.3 | ||||||
Foreign currency unrealized gains expected to be reclassified into earnings over next twelve months, taxes | (0.9) | (0.9) | ||||||
3.95% senior unsecured notes due 2027 | ||||||||
Derivative [Line Items] | ||||||||
Debt instrument, interest rate | 3.95% | |||||||
Proceeds from issue of senior notes in settlement of derivatives | 10 | |||||||
3.95% senior unsecured notes due 2027 | Maximum | ||||||||
Derivative [Line Items] | ||||||||
Debt instrument, interest rate | 5.95% | |||||||
Cross currency and interest rate swap | ||||||||
Derivative [Line Items] | ||||||||
Carrying value / fair value of derivative liabilities | 0 | $ 0 | $ 0 | |||||
Treasury Lock | Interest Lock Agreement | 3.95% senior unsecured notes due 2027 | ||||||||
Derivative [Line Items] | ||||||||
Percentage of reduction in effective interest rate on senior notes | 0.25% | |||||||
Cross Currency And Interest Rate Swap | Designated as Hedging Instrument | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Floating rate obligation | $ 319.9 | CHE 270 | ||||||
Derivative amortization period | 5 years | |||||||
Derivative fixed interest rate (as a percent) | 0.30% | 0.30% | ||||||
Derivative, additional fixed interest rate | 1.115% | 1.115% | ||||||
Derivative swaps, frequency of periodic payment | semi-annually | |||||||
Derivative swaps, principal amortize at Nov. 15, 2024 | $ 59.2 | CHE 50 | ||||||
Derivative swaps, principal amortize at Nov. 15, 2025 | $ 82.9 | CHE 70 | ||||||
Foreign Currency Forward Exchange Contracts | ||||||||
Derivative [Line Items] | ||||||||
Foreign exchange net gains (losses) on derivative contracts not designated as hedges | 0.8 | $ 1 | ||||||
Number of credit contingency features | Item | 0 | |||||||
Foreign Currency Forward Exchange Contracts | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Gains (losses) in other comprehensive income, effective portion | 4.3 | $ 21.6 | $ 8.3 | $ 28.4 | ||||
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | 433.9 | 433.9 | $ 503.3 | |||||
Foreign Currency Forward Exchange Contracts | Designated as Hedging Instrument | Cash Flow Hedging | ||||||||
Derivative [Line Items] | ||||||||
Net gain (loss) recognized in gross margin | 2.6 | $ 3.6 | 6.3 | $ 4.3 | ||||
Foreign Currency Forward Exchange Contracts | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Foreign exchange net gains (losses) on derivative contracts not designated as hedges | 0.1 | 0.3 | ||||||
Commodity Swap Agreements | ||||||||
Derivative [Line Items] | ||||||||
Notional amount | $ 18.4 | $ 18.4 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Change in Fair Value of Foreign Currency Forward Exchange Contracts Under Hedge Designations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Derivative [Line Items] | |||||
Beginning Balance | $ 1,622.2 | $ 1,487.1 | $ 1,554.2 | $ 1,485.5 | |
Ending Balance | 1,666.1 | 1,480.3 | 1,666.1 | 1,480.3 | |
Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Beginning Balance | [1] | (15.4) | |||
Ending Balance | [1] | (3.3) | (3.3) | ||
Designated as Hedging Instrument | Foreign Currency Forward Exchange Contracts | |||||
Derivative [Line Items] | |||||
Beginning Balance | 4.8 | (8) | 10.5 | (3.5) | |
Losses (gains) reclassified to net sales | (2) | 2.8 | (4.7) | 3.1 | |
Decrease in fair value | 3.2 | (16.5) | (6.2) | (21.3) | |
Ending Balance | $ 0.4 | $ (21.7) | $ 0.4 | $ (21.7) | |
[1] Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Fair Values of Outstanding Financial Instruments Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Prepaid and other Current Assets | $ 51 | $ 38.9 |
Current Liabilities | 276.1 | 329.8 |
Derivative Products | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid and other Current Assets | 9.4 | 8.6 |
Other Assets | 12.8 | 13.5 |
Current Liabilities | 13.7 | 22 |
Non-Current Liabilities | 1.7 | 6.7 |
Foreign Currency Forward Exchange Contracts | Derivative Products | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid and other Current Assets | 3.7 | 1.9 |
Other Assets | 4.8 | 3.4 |
Current Liabilities | 7 | 14.1 |
Non-Current Liabilities | 0.9 | 5.3 |
Commodity Swap Agreements | Derivative Products | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid and other Current Assets | 0.1 | 0.5 |
Other Assets | 0 | 0 |
Current Liabilities | 5.9 | 7.2 |
Non-Current Liabilities | 0.8 | 1.4 |
Cross currency and interest rate swap | Derivative Products | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid and other Current Assets | 5.6 | 6.2 |
Other Assets | 8 | 10.1 |
Current Liabilities | 0 | 0 |
Non-Current Liabilities | 0 | 0 |
Undesignated hedges | Derivative Products | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid and other Current Assets | 0 | 0 |
Other Assets | 0 | 0 |
Current Liabilities | 0.8 | 0.7 |
Non-Current Liabilities | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ (11.5) | $ (12.7) | $ (23.2) | $ (17.4) |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) Liability Item | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Number of counterparties, which experienced significant downgrades | Item | 0 |
Level 1 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Assets | $ 0 |
Liabilities | $ 0 |
Level 3 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value measurement with unobservable inputs reconciliation, number of liabilities | Liability | 1 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition, description of timing | As our production cycle is typically nine months or less, it is expected that goods related to the revenue recognized over time will be shipped and billed within the next twelve months. |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Market (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 454.3 | $ 393 | $ 912 | $ 783.6 |
Commercial Aerospace | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 264.3 | 227.6 | 548.8 | 446.5 |
Space & Defense | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 137.5 | 111.9 | 263.7 | 230.1 |
Industrial | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 52.5 | $ 53.5 | $ 99.5 | $ 107 |
Revenue - Schedule of Activity
Revenue - Schedule of Activity Related to Contract Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Change in Contract with Customer Asset [Line Items] | ||
Beginning Balance | $ 28.6 | $ 32 |
Net revenue billed | (1.4) | (3.4) |
Ending Balance | 27.2 | 28.6 |
Composite Materials | ||
Change in Contract with Customer Asset [Line Items] | ||
Beginning Balance | 6.6 | 9.1 |
Net revenue billed | 0.4 | (2.5) |
Ending Balance | 7 | 6.6 |
Engineered Products | ||
Change in Contract with Customer Asset [Line Items] | ||
Beginning Balance | 22 | 22.9 |
Net revenue billed | (1.8) | (0.9) |
Ending Balance | $ 20.2 | $ 22 |
Segment Information - Schedule
Segment Information - Schedule of Operating Segment Reporting Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Segment Reporting Information [Line Items] | |||||
Total sales | $ 454.3 | $ 393 | $ 912 | $ 783.6 | |
Other operating expense (income) | 0.5 | (19.1) | 0.7 | (18.1) | |
Operating income (loss) | 61.3 | 63.8 | 124.1 | 93.9 | |
Depreciation and amortization | 31 | 31.7 | 61.7 | 63.9 | |
Stock-based compensation | 2.8 | 2.4 | 15.7 | 12.8 | |
Accrual basis additions to capital expenditures | 53.7 | 17.2 | 70.5 | 28.3 | |
Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | [1] | (19) | (19.5) | (39.3) | (36.3) |
Corporate & Other and Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | [1] | (19) | (19.5) | (39.3) | (36.3) |
Other operating expense (income) | [1] | 0 | (19.4) | 0 | (19.4) |
Operating income (loss) | [1] | (9.7) | 7.5 | (32.1) | (15.6) |
Depreciation and amortization | [1] | 0 | 0.1 | 0 | 0.1 |
Stock-based compensation | [1] | 1.4 | 1.2 | 10.4 | 8.3 |
Accrual basis additions to capital expenditures | [1] | 0 | 0 | 0 | 0 |
Composite Materials | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 378.5 | 318.1 | 756.7 | 631.9 | |
Composite Materials | Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 18.5 | 18.5 | 37.8 | 35 | |
Composite Materials | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 397 | 336.6 | 794.5 | 666.9 | |
Other operating expense (income) | (0.3) | 0.3 | 0.5 | 1.2 | |
Operating income (loss) | 64.2 | 47.2 | 137.4 | 89.8 | |
Depreciation and amortization | 27.5 | 28.1 | 54.7 | 56.7 | |
Stock-based compensation | 1.1 | 0.9 | 4.2 | 3.5 | |
Accrual basis additions to capital expenditures | 12.9 | 14.5 | 26 | 24.6 | |
Engineered Products | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 75.8 | 74.9 | 155.3 | 151.7 | |
Engineered Products | Intersegment Elimination | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 0.5 | 1 | 1.5 | 1.3 | |
Engineered Products | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total sales | 76.3 | 75.9 | 156.8 | 153 | |
Other operating expense (income) | (0.2) | 0 | 0.2 | 0.1 | |
Operating income (loss) | 6.8 | 9.1 | 18.8 | 19.7 | |
Depreciation and amortization | 3.5 | 3.5 | 7 | 7.1 | |
Stock-based compensation | 0.3 | 0.3 | 1.1 | 1 | |
Accrual basis additions to capital expenditures | $ 40.8 | $ 2.7 | $ 44.5 | $ 3.7 | |
[1] We do not allocate corporate expenses to the operating segments. |
Segment Information - Schedul_2
Segment Information - Schedule of Goodwill and Intangible Assets by Segment (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Changes in the carrying amount of gross goodwill and other purchased intangibles | |
Balance at Period Beginning | $ 256 |
Amortization expense | (1.8) |
Currency translation adjustments | 0 |
Balance at Period Ending | 254.2 |
Composite Materials | |
Changes in the carrying amount of gross goodwill and other purchased intangibles | |
Balance at Period Beginning | 86.9 |
Amortization expense | (0.5) |
Currency translation adjustments | 1.2 |
Balance at Period Ending | 87.6 |
Engineered Products | |
Changes in the carrying amount of gross goodwill and other purchased intangibles | |
Balance at Period Beginning | 169.1 |
Amortization expense | (1.3) |
Currency translation adjustments | (1.2) |
Balance at Period Ending | $ 166.6 |
Segment Information - Additiona
Segment Information - Additional Information (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Segment Reporting [Abstract] | |
Goodwill | $ 188.3 |
Intangible assets | $ 65.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning Balance | $ 1,622.2 | $ 1,554.2 | $ 1,487.1 | $ 1,485.5 | $ 1,554.2 | $ 1,485.5 | |
Other comprehensive (loss) income | 6.9 | 22.3 | (47.2) | (17.6) | 29.2 | (64.8) | |
Ending Balance | 1,666.1 | 1,622.2 | 1,480.3 | 1,487.1 | 1,666.1 | 1,480.3 | |
Unrecognized Net Defined Benefit and Postretirement Plan Costs | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning Balance | (49.1) | (49.1) | |||||
Other comprehensive (loss) income before reclassifications | (1.8) | ||||||
Amounts reclassified from accumulated other comprehensive loss | 0.8 | ||||||
Other comprehensive (loss) income | (1) | ||||||
Ending Balance | (50.1) | (50.1) | |||||
Change in Fair Value of Derivatives Products | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning Balance | [1] | (15.4) | (15.4) | ||||
Other comprehensive (loss) income before reclassifications | [1] | 7.8 | |||||
Amounts reclassified from accumulated other comprehensive loss | [1] | 4.3 | |||||
Other comprehensive (loss) income | [1] | 12.1 | |||||
Ending Balance | [1] | (3.3) | (3.3) | ||||
Foreign Currency Translation | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning Balance | (109.9) | (109.9) | |||||
Other comprehensive (loss) income before reclassifications | 18.1 | ||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | ||||||
Other comprehensive (loss) income | 18.1 | ||||||
Ending Balance | (91.8) | (91.8) | |||||
Accumulated Other Comprehensive Loss | |||||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||||
Beginning Balance | (152.1) | (174.4) | (144.1) | (126.5) | (174.4) | (126.5) | |
Other comprehensive (loss) income before reclassifications | 24.1 | ||||||
Amounts reclassified from accumulated other comprehensive loss | 5.1 | ||||||
Other comprehensive (loss) income | 6.9 | 22.3 | (47.2) | (17.6) | 29.2 | ||
Ending Balance | $ (145.2) | $ (152.1) | $ (191.3) | $ (144.1) | $ (145.2) | $ (191.3) | |
[1] Includes forward foreign exchange contracts, interest rate derivatives and commodity swaps |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of unrecognized net defined benefit and postretirement plan costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Defined Benefit and Postretirement Plan Costs | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, net losses | $ 0.5 | $ 0.6 | $ 1 | $ 1.1 |
Reclassification adjustment from AOCI on derivatives, net gains (losses) | 0.4 | 0.5 | 0.8 | 0.8 |
Change in Fair Value of Derivatives Products | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax | 3.3 | 5.8 | 5.8 | (1.8) |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | 2.5 | 4.4 | 4.3 | (1.6) |
Change in Fair Value of Derivatives Products | Foreign Currency Forward Exchange Contracts | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax | 2.6 | 3.6 | 6.3 | 4.3 |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | 1.9 | 2.7 | 4.6 | 3.1 |
Change in Fair Value of Derivatives Products | Commodity Swaps | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax | 1.8 | (0.3) | 2.7 | (1.1) |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | 1.4 | (0.2) | 2.1 | (0.8) |
Change in Fair Value of Derivatives Products | Interest Rate Derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Reclassification adjustment from AOCI on unrecognized net defined benefit and postretirement plan costs, tax | (1.1) | 2.5 | (3.2) | (5) |
Reclassification adjustment from AOCI on derivatives, tax expense (benefit) | $ (0.8) | $ 1.9 | $ (2.4) | $ (3.9) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Dec. 16, 2022 USD ($) Prp | Oct. 18, 2021 USD ($) mi | Aug. 31, 2017 Entity | Oct. 31, 2016 mi | Mar. 31, 2016 USD ($) mi | Mar. 31, 2023 Entity | Jun. 30, 2023 USD ($) Entity mi | Dec. 31, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||||||||
Number of identified non governmental potentially responsible parties | Entity | 120 | |||||||
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Employee-related Liabilities, Current | Employee-related Liabilities, Current | ||||||
Accrual for environmental loss contingencies | $ 0.6 | $ 0.8 | ||||||
District Court Approval Of Consent Decree Member | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | Prp | 84 | |||||||
New Jersey Requesting Court Approval for Settlement | $ 150 | |||||||
Escrow Deposit | $ 150 | |||||||
Lower Passaic River | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | 83 | 48 | ||||||
'Length of river to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of environmental conditions | mi | 17 | |||||||
Lower Passaic River | Minimum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi | 8 | 8 | ||||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 308.7 | $ 970 | ||||||
Lower Passaic River | Maximum | ||||||||
Loss Contingencies [Line Items] | ||||||||
Portion of the river for which Record of Decision setting forth the EPA's selected remedy (in miles) | mi | 9 | |||||||
Expected cost of capping and dredging of the lower eight miles of the river by EPA | $ 661.5 | $ 2,070 | ||||||
Unilateral Administrative Order [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of entities, in addition to Hexcel, who received a directive from the New Jersey Department of Environmental Protection | Entity | 38 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Product Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2023 | Mar. 31, 2023 | |
Changes in accrued product warranty cost | ||
Balance at the beginning of the period | $ 3.5 | $ 3.1 |
Warranty expense | 2.2 | 1.6 |
Deductions and other | (0.9) | (1.2) |
Balance at the end of the period | $ 4.8 | $ 3.5 |
Restructuring - Additional Info
Restructuring - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charge | $ 0.5 | $ 0.7 | ||
Anticipated future cash payments | $ 1.5 | $ 1.5 | $ 3.3 | $ 5.4 |
Restructuring - Schedule of Res
Restructuring - Schedule of Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | $ 3.3 | $ 5.4 |
Restructuring Charge | 0.5 | 0.7 |
FX Impact | 0 | 0 |
Cash Paid | (2) | (4.3) |
Non-Cash | (0.3) | (0.3) |
Ending Balance | 1.5 | 1.5 |
Employee termination | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 3.3 | 5.4 |
Restructuring Charge | 0.2 | 0.4 |
FX Impact | 0 | 0 |
Cash Paid | (2) | (4.3) |
Non-Cash | 0 | 0 |
Ending Balance | 1.5 | 1.5 |
Impairment and other | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning Balance | 0 | 0 |
Restructuring Charge | 0.3 | 0.3 |
FX Impact | 0 | 0 |
Cash Paid | 0 | 0 |
Non-Cash | (0.3) | (0.3) |
Ending Balance | $ 0 | $ 0 |