Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 1-4801 | |
Entity Registrant Name | BARNES GROUP INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 06-0247840 | |
Entity Address, Address Line One | 123 Main Street | |
Entity Address, City or Town | Bristol | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06010 | |
City Area Code | 860 | |
Local Phone Number | 583-7070 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | B | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 50,626,723 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000009984 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 338,984 | $ 321,268 | $ 674,341 | $ 633,651 |
Cost of sales | 224,625 | 212,754 | 450,868 | 419,944 |
Selling and administrative expenses | 88,350 | 68,507 | 174,180 | 142,587 |
Goodwill impairment charge | 0 | 68,194 | 0 | 68,194 |
Total operating costs and expenses | 312,975 | 349,455 | 625,048 | 630,725 |
Operating income (loss) | 26,009 | (28,187) | 49,293 | 2,926 |
Interest expense | 6,512 | 3,325 | 11,819 | 6,893 |
Other expense (income), net | (2,894) | (403) | (1,553) | 1,226 |
Income (loss) before income taxes | 22,391 | (31,109) | 39,027 | (5,193) |
Income taxes | 5,039 | 8,443 | 8,516 | 13,875 |
Net income (loss) | $ 17,352 | $ (39,552) | $ 30,511 | $ (19,068) |
Per common share: | ||||
Basic (in dollars per share) | $ 0.34 | $ (0.78) | $ 0.60 | $ (0.37) |
Diluted (in dollars per share) | $ 0.34 | $ (0.78) | $ 0.60 | $ (0.37) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 51,051,780 | 51,004,375 | 51,020,648 | 51,013,346 |
Diluted (in shares) | 51,225,545 | 51,004,375 | 51,245,163 | 51,013,346 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 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 (loss) | $ 17,352 | $ (39,552) | $ 30,511 | $ (19,068) | |
Other comprehensive income (loss), net of tax | |||||
Unrealized loss on hedging activities, net of tax | [1] | 735 | (116) | (151) | 3,402 |
Foreign currency translation adjustments, net of tax | [2] | (14,337) | (73,193) | 4,136 | (81,805) |
Defined benefit pension and other postretirement benefits, net of tax | [3] | (1,351) | 3,347 | 10,271 | 5,851 |
Total other comprehensive (loss) income, net of tax | (14,953) | (69,962) | 14,256 | (72,552) | |
Total comprehensive income (loss) | $ 2,399 | $ (109,514) | $ 44,767 | $ (91,620) | |
[1]Net of tax of $238 and $(25) for the three months ended June 30, 2023 and 2022, respectively, and $(38) and $1,076 for the six months ended June 30, 2023 and 2022, respectively.[2]Net of tax of $0 for the three and six months ended June 30, 2023 and 2022.[3]Net of tax of $(11) and $852 for the three months ended June 30, 2023 and 2022, respectively, and $3,628 and $1,616 for the six months ended June 30, 2023 and 2022, respectively. |
Consolidated Statements of Comm
Consolidated Statements of Commprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized (loss) income on hedging activities, tax | $ 238 | $ (25) | $ (38) | $ 1,076 |
Foreign currency translation adjustment, tax | 0 | 0 | ||
Defined benefit pension and other postretirement benefits, tax | $ (11) | $ 852 | $ 3,628 | $ 1,616 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 74,673 | $ 76,858 |
Accounts receivable, less allowances (2023 - $5,461; 2022 - $5,222) | 311,977 | 291,883 |
Inventories | 294,872 | 283,402 |
Prepaid expenses and other current assets | 85,395 | 80,161 |
Total current assets | 766,917 | 732,304 |
Deferred income taxes | 12,138 | 18,028 |
Property, plant and equipment | 930,171 | 906,980 |
Less accumulated depreciation | (609,710) | (586,841) |
Property, plant and equipment, net | 320,461 | 320,139 |
Goodwill | 842,152 | 835,472 |
Other intangible assets, net | 422,922 | 442,492 |
Other assets | 76,089 | 65,295 |
Total assets | 2,440,679 | 2,413,730 |
Current liabilities | ||
Notes and overdrafts payable | 8,011 | 8 |
Accounts payable | 144,137 | 145,060 |
Accrued liabilities | 181,121 | 158,568 |
Long-term debt - current | 1,487 | 1,437 |
Total current liabilities | 334,756 | 305,073 |
Long-term debt | 564,930 | 569,639 |
Accrued retirement benefits | 44,852 | 54,352 |
Deferred income taxes | 61,422 | 62,562 |
Long-term tax liability | 21,714 | 39,086 |
Other liabilities | 36,018 | 36,691 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity | ||
Common stock - par value $0.01 per share Authorized: 150,000,000 shares Issued: at par value (2023 - 64,525,558 shares; 2022 - 64,481,493 shares) | 645 | 645 |
Additional paid-in capital | 532,414 | 529,791 |
Treasury stock, at cost (2023 - 13,899,665 shares; 2022 - 13,890,802 shares) | (531,883) | (531,507) |
Retained earnings | 1,582,055 | 1,567,898 |
Accumulated other non-owner changes to equity | (206,244) | (220,500) |
Total stockholders' equity | 1,376,987 | 1,346,327 |
Total liabilities and stockholders' equity | $ 2,440,679 | $ 2,413,730 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,461 | $ 5,222 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 64,525,558 | 64,481,493 |
Treasury Stock, Common, Shares | 13,899,665 | 13,890,802 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Operating activities: | ||
Net income (loss) | $ 30,511 | $ (19,068) |
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 46,913 | 44,861 |
(Gain) loss on disposition of property, plant and equipment | (180) | 47 |
Stock compensation expense | 4,832 | 6,015 |
Non-cash goodwill impairment charge | 0 | (68,194) |
Changes in assets and liabilities: | ||
Accounts receivable | (18,102) | (30,232) |
Inventories | (9,743) | (26,671) |
Prepaid expenses and other current assets | (5,183) | (5,165) |
Accounts payable | (2,300) | 10,196 |
Accrued liabilities | 16,745 | (30,674) |
Deferred income taxes | 779 | (1,261) |
Long-term retirement benefits | (10,636) | (1,871) |
Long-term tax liability | (13,029) | (6,949) |
Other | 1,860 | 1,097 |
Net cash provided by operating activities | 42,467 | 8,519 |
Investing activities: | ||
Proceeds from disposition of property, plant and equipment | 149 | 92 |
Capital expenditures | (21,617) | (13,523) |
Other | (722) | (1,645) |
Net cash used by investing activities | (22,190) | (15,076) |
Financing activities: | ||
Net change in other borrowings | 7,775 | (1,372) |
Payments on long-term debt | (112,927) | (70,369) |
Proceeds from the issuance of long-term debt | 101,208 | 80,000 |
Proceeds from the issuance of common stock | 189 | 246 |
Common stock repurchases | 0 | 6,721 |
Dividends paid | (16,195) | (16,192) |
Withholding taxes paid on stock issuances | (376) | (154) |
Other | (3,764) | (9,825) |
Net cash used by financing activities | (24,090) | (24,387) |
Effect of exchange rate changes on cash flows | (466) | (4,475) |
Decrease in cash, cash equivalents and restricted cash | (4,279) | (35,419) |
Cash, cash equivalents and restricted cash at beginning of period | 81,128 | 111,909 |
Cash, cash equivalents and restricted cash at end of period | 76,849 | 76,490 |
Cash and cash equivalents at end of period | 74,673 | 72,278 |
Prepaid Expenses and Other Current Assets | ||
Financing activities: | ||
Restricted cash | (2,176) | (2,122) |
Other Noncurrent Assets | ||
Financing activities: | ||
Restricted cash | $ 0 | $ (2,090) |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe accompanying Condensed Consolidated Balance Sheet and the related Condensed Consolidated Statements of Income (Loss), Comprehensive Income (Loss) and Cash Flows have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The Condensed Consolidated Financial Statements do not include all information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. The balance sheet as of December 31, 2022 has been derived from the 2022 financial statements of Barnes Group Inc. (the "Company"). For additional information, please refer to the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. In the opinion of management, all adjustments, including normal recurring accruals considered necessary for a fair statement of the results, have been included. Operating results for the three- and six-month periods ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. Certain reclassifications have been made to prior year amounts to conform to current year presentation (see Note 3). |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards The Financial Accounting Standards Board ("FASB") establishes changes to accounting principles under U.S. generally accepted accounting principles ("US GAAP") through the use of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification. The Company evaluates the applicability and potential impacts of recent ASUs on its Condensed Consolidated Financial Statements and related disclosures. Recently Adopted Accounting Standards In October 2021, the FASB amended its guidance related to business combinations. The amended guidance requires entities to recognize and measure contract assets and contract liabilities acquired in business combinations on the acquisition date in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers . The new guidance is effective on a prospective basis for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance, on a prospective basis, on January 1, 2023 and will apply the guidance to future acquisitions. In September 2022, the FASB amended its guidance related to supplier finance programs. The amended guidance requires additional disclosures surrounding the use of supplier finance programs to purchase goods or services including disclosing the key terms of the programs, the amount of obligations outstanding at the end of the reporting period, and a roll-forward of those obligations. The new guidance, except the amendment on roll-forward information, is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendment on roll-forward information is effective for fiscal years beginning after December 15, 2023. The Company adopted this guidance within the Condensed Consolidated Financial Statements filed as of March 31, 2023 and it did not have a material impact on the Company's Condensed Consolidated Financial Statements, however it did result in additional disclosures pursuant to the new guidance. See Note 15 of the Condensed Consolidated Financial Statements. Recently Issued Accounting Standards The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate (“LIBOR”), announced its intent to phase out the use of LIBOR by December 31, 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, identified the Secured Overnight Financing Rate (“SOFR”) as its preferred benchmark alternative to U.S. dollar LIBOR. Published by the Federal Reserve Bank of New York, SOFR represents a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is calculated based on directly observable U.S. Treasury-backed repurchase transactions. In March 2020, in response to this transition, the FASB issued guidance related to this rate reform, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued by reference rate reform, and addresses operational issues likely to arise in modifying contracts to replace discontinued reference rates with new rates. In January 2021, the FASB issued further clarifying guidance regarding derivatives, as it relates to this transition. In December 2022, the FASB extended the expiration of the guidance through December 31, 2024. The Company’s Existing Credit Agreement (Note 8) and corresponding USD interest |
Revenue
Revenue | 3 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company is a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, serving a wide range of end markets and customers. Its specialized products and services are used in far-reaching applications in healthcare, automation, packaging, aerospace, mobility, and manufacturing. Revenue is recognized by the Company when control of the product or solution is transferred to the customer. Control is generally transferred when products are shipped or delivered to customers, title is transferred, the significant risks and rewards of ownership have transferred, and the Company has rights to payment and the rewards of ownership pass to the customer. Customer acceptance may also be a factor in determining whether control of the product has transferred. Although revenue is generally recognized at a point in time, a certain portion of the Company's businesses with customized products or contracts in which the Company performs work on customer-owned assets requires the use of an over-time recognition model as certain contracts meet one or more of the established criteria pursuant to the accounting guidance. Also, service revenue is recognized as control transfers, which is concurrent with the services being performed. The following table presents the Company's revenue disaggregated by products and services, and geographic regions, by segment: Three Months Ended Three Months Ended Industrial Aerospace Total Company Industrial Aerospace Total Company Products and Services Motion Control Solutions Products (A) $ 100,440 $ — $ 100,440 $ 95,547 $ — 95,547 Molding Solutions Products 100,127 — 100,127 101,209 — 101,209 Automation Products 16,402 — 16,402 15,359 — 15,359 Aerospace Original Equipment Manufacturing Products — 75,362 75,362 — 69,503 69,503 Aerospace Aftermarket Products and Services — 46,653 46,653 — 39,650 39,650 $ 216,969 $ 122,015 $ 338,984 $ 212,115 $ 109,153 $ 321,268 Geographic Regions (B) Americas $ 93,254 $ 87,849 $ 181,103 $ 88,970 $ 80,766 $ 169,736 Europe 81,021 20,401 101,422 74,770 18,663 93,433 Asia 40,821 11,641 52,462 46,670 8,347 55,017 Rest of World 1,873 2,124 3,997 1,705 1,377 3,082 $ 216,969 $ 122,015 $ 338,984 $ 212,115 $ 109,153 $ 321,268 Six Months Ended Six Months Ended Industrial Aerospace Total Company Industrial Aerospace Total Company Products and Services Motion Control Solutions Products (A) $ 198,914 $ — $ 198,914 $ 188,594 $ — $ 188,594 Molding Solutions Products 203,654 — 203,654 204,245 — 204,245 Automation Products 32,502 — 32,502 30,948 — 30,948 Aerospace Original Equipment Manufacturing Products — 148,100 148,100 — 135,132 135,132 Aerospace Aftermarket Products and Services — 91,171 91,171 — 74,732 74,732 $ 435,070 $ 239,271 $ 674,341 $ 423,787 $ 209,864 $ 633,651 Geographic Regions (B) Americas $ 189,194 $ 172,421 $ 361,615 $ 174,975 $ 153,263 $ 328,238 Europe 160,629 41,068 201,697 157,139 38,484 195,623 Asia 80,932 21,663 102,595 88,489 15,665 104,154 Rest of World 4,315 4,119 8,434 3,184 2,452 5,636 $ 435,070 $ 239,271 $ 674,341 $ 423,787 $ 209,864 $ 633,651 (A) Effective January 1, 2023, the Company combined Industrial's Force & Motion Control and Engineered Components businesses to form a single strategic business unit named Motion Control Solutions. As a result of the combination, Motion Control Solutions Products reflects product revenues that were previously disclosed as Force & Motion Control Products and Engineered Components Products. Prior period amounts have been reclassified to conform to the current year presentation. (B) Sales by geographic region are based on the location to which the product is shipped and services are delivered. Revenue from products and services transferred to customers at a point in time accounted for approximately 75 percent and 80 percent of total revenue for the three month periods ended June 30, 2023 and June 30, 2022, respectively. Revenue from products and services transferred to customers at a point in time accounted for approximately 80 percent of total revenue for each of the six month periods ended June 30, 2023 and June 30, 2022. A majority of revenue within the Industrial segment and Aerospace Original Equipment Manufacturing Products business ("OEM"), along with a portion of revenue within the Aerospace Aftermarket Products and Services business ("Aftermarket"), is recognized at a point in time, primarily when the product or solution is shipped to the customer. Revenue from products and services transferred to customers over-time accounted for approximately 25 percent of total revenue and 20 percent of total revenue for the three month periods ended June 30, 2023 and June 30, 2022, respectively. Revenue from products and services transferred to customers over-time accounted for approximately 20 percent of total revenue for each of the six month periods ended June 30, 2023 and June 30, 2022. The Company recognizes revenue over-time in instances where a contract supports a continual transfer of control to the customer. Substantially all of our revenue in the Aerospace Aftermarket maintenance repair and overhaul business (within Aftermarket Products and Services) and a portion of the revenue for Motion Control Solutions products, M olding Solutions products and Aerospace OEM products is recognized over-time. Within the Molding Solutions and Aerospace Aftermarket businesses, this continual transfer of control to the customer partially results from repair and refurbishment work performed on customer-controlled assets. With other contracts, this continual transfer of control to the customer is supported by clauses in the contract, or governing commercial law of the relevant jurisdiction, where we deliver products that do not have an alternative use and require an enforceable right to payment of costs incurred (plus a reasonable profit) or the Company has a contractual right to complete any work in process and receive full contract price. The majority of our revenue is from contracts that are for less than one year, however certain Aerospace OEM and Molding Solutions business contracts extend beyond one year. In the Industrial segment, customers are typically OEMs or suppliers to OEMs and, in some businesses, distributors. In the Aerospace segment, customers include commercial airlines, OEMs, defense-related manufacturers, and industry parts and service providers. A performance obligation represents a promise within a contract to provide a distinct good or service to the customer. Revenue is recognized in an over-time model based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company utilizes the cost-to-cost measure of progress for over-time contracts as we believe this measure best depicts the transfer of control to the customer, which occurs as we incur costs on contracts. Adjustments to net sales, cost of sales and the related impact to operating income are recognized as necessary in the period they become known. Revenue recognized from performance obligations satisfied in previous periods was not material in both the three and six month periods ended June 30, 2023 and 2022. Contract Balances . The timing of revenue recognition, invoicing and cash collections affects accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the Condensed Consolidated Balance Sheets. Unbilled Receivables (Contract Assets) - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized when 1) the cost-to-cost method is applied and 2) such revenue exceeds the amount invoiced to the customer. Unbilled receivables are included within Prepaid Expenses and Other Current Assets on the Condensed Consolidated Balance Sheets as of June 30, 2023 and December 31, 2022. Customer Advances and Deposits (Contract Liabilities) - The Company may receive a customer advance or deposit, or have an unconditional right to receive a customer advance, prior to revenue being recognized. Certain contracts within the Molding Solutions business, for example, may require such advances. Since the performance obligations related to such advances have not been satisfied, a contract liability is established. An offsetting asset of equal amount is recorded as an account receivable until the advance is collected. Advances and deposits are included within Accrued Liabilities on the Condensed Consolidated Balance Sheets until the respective revenue is recognized. Advance payments are not considered a significant financing component as they are generally received less than one year before the customer solution is completed. These assets and liabilities are reported on the Condensed Consolidated Balance Sheets on an individual contract basis at the end of each reporting period. Net contract assets (liabilities) consisted of the following: June 30, 2023 December 31, 2022 $ Change % Change Unbilled receivables (contract assets) $ 49,992 $ 42,423 $ 7,569 18 % Contract liabilities (41,640) (27,857) (13,783) 49 % Net contract assets $ 8,352 $ 14,566 $ (6,214) (43) % Contract liabilities balances at June 30, 2023 and December 31, 2022 include $18,686 and $9,593, respectively, of customer advances for which the Company has an unconditional right to collect payment. Accounts receivable, as presented on the Condensed Consolidated Balance Sheet, includes corresponding balances at June 30, 2023 and December 31, 2022, respectively. Changes in the net contract assets during the six month period ended June 30, 2023 included a $13,783 increase in contract liabilities, driven primarily by new customer advances and deposits, partially offset by revenue recognized in the current period. Offsetting this net contract assets decrease was a $7,569 increase in contract assets, driven primarily by contract progress (i.e., unbilled receivable), partially offset by earlier contract progress being invoiced to the customer. The Company recognized approximately 30% and 70% of the revenue related to the contract liabilities balance as of December 31, 2022 during the three and six month periods ended June 30, 2023, respectively, and approximately 40% and over 90% of the revenue related to the contract liabilities balance as of December 31, 2021 during the three and six month periods ended June 30, 2022, respectively, primarily representing revenue from the sale of molds and hot runners within the Molding Solutions business. Remaining Performance Obligations . The Company has elected to disclose remaining performance obligations only for contracts with an original duration of greater than one year. Such remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed and, for Aerospace, excludes projections of components and assemblies that Aerospace OEM customers anticipate purchasing in the future under existing programs, which represent orders that are beyond lead time and do not represent performance obligations pursuant to accounting guidance. As of June 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $292,489. The Company expects to recognize revenue on approximately 75% of the remaining performance obligations over the next 12 months, with the remainder to be recognized within 24 months. |
Stockholders Equity
Stockholders Equity | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Stockholders Equity | Stockholders' Equity A schedule of consolidated changes in equity for the six months ended June 30, 2023 is as follows (number of shares in thousands): Common Common Additional Treasury Treasury Retained Accumulated Total December 31, 2022 64,481 $ 645 $ 529,791 13,891 $ (531,507) $ 1,567,898 $ (220,500) $ 1,346,327 Comprehensive income — — — — — 13,159 29,209 42,368 Dividends declared ($0.16 per share) — — — — — (8,096) — (8,096) Residual interest in subsidiary — — (2,381) — — — — (2,381) Employee stock plans 23 — 2,665 6 (252) (83) — 2,330 March 31, 2023 64,504 $ 645 $ 530,075 13,897 $ (531,759) $ 1,572,878 $ (191,291) $ 1,380,548 Comprehensive income — — — — — 17,352 (14,953) 2,399 Dividends declared ($0.16 per share) — — — — — (8,099) — (8,099) Employee stock plans 22 — 2,339 3 (124) (76) — 2,139 June 30, 2023 64,526 $ 645 $ 532,414 13,900 $ (531,883) $ 1,582,055 $ (206,244) $ 1,376,987 A schedule of consolidated changes in equity for the six months ended June 30, 2022 is as follows (number of shares in thousands): Common Common Additional Treasury Treasury Retained Accumulated Total December 31, 2021 64,344 $ 643 $ 516,562 13,658 $ (523,642) $ 1,587,041 $ (151,838) $ 1,428,766 Comprehensive income (loss) — — — — — 20,484 (2,590) 17,894 Dividends declared ($0.16 per share) — — — — — (8,111) — (8,111) Employee stock plans 12 1 2,665 2 (49) (136) — 2,481 March 31, 2022 64,356 $ 644 $ 519,227 13,660 $ (523,691) $ 1,599,278 $ (154,428) $ 1,441,030 Comprehensive loss — — — — — (39,552) (69,962) (109,514) Dividends declared ($0.16 per share) — — — — — (8,081) — (8,081) Common stock repurchases — — — 200 (6,721) — — (6,721) Employee stock plans 23 — 3,548 3 (106) (62) — 3,380 June 30, 2022 64,379 $ 644 $ 522,775 13,863 $ (530,518) $ 1,551,583 $ (224,390) $ 1,320,094 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income (Loss) Per Common Share For the purpose of computing diluted net income per common share, the weighted-average number of common shares outstanding is increased for the potential dilutive effects of stock-based incentive plans. For the purpose of computing diluted net income per common share for the three- and six- month periods ended June 30, 2023, the weighted-average number of common shares outstanding was increased by 173,765 and 224,515, respectively. No potentially dilutive shares have been included in the diluted earnings per share calculations for the three- and six-month periods ended June 30, 2022 due to the Company’s reported net losses for the periods. The calculation of weighted-average diluted shares outstanding excludes all shares that would have been anti-dilutive. During the three month periods ended June 30, 2023 and 2022, the Company excluded 784,087 and 875,544 stock awards, respectively, from the calculation of weighted-average diluted shares outstanding as the stock awards were considered anti-dilutive. During the six month periods ended June 30, 2023 and 2022, the Company excluded 795,032 and 797,194 stock awards, respectively, from the calculation of weighted-average diluted shares outstanding as the stock awards were considered anti-dilutive. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories consisted of: June 30, 2023 December 31, 2022 Finished goods $ 99,938 $ 105,965 Work-in-process 78,108 68,664 Raw material and supplies 116,826 108,773 $ 294,872 $ 283,402 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill: The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company as of and for the period ended June 30, 2023: Industrial Aerospace Total Company December 31, 2022 (A) $ 804,686 $ 30,786 $ 835,472 Foreign currency translation 6,680 — 6,680 June 30, 2023 $ 811,366 $ 30,786 $ 842,152 (A) Industrial amounts are net of accumulated goodwill impairment losses of $68,194. In the second quarter of 2023, management performed its annual impairment testing of goodwill and determined that there was no goodwill impairment. Other Intangible Assets: Other intangible assets consisted of: June 30, 2023 December 31, 2022 Range of Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized intangible assets: Revenue Sharing Programs (RSPs) Up to 30 $ 299,500 $ (170,233) $ 299,500 $ (164,162) Component Repair Programs (CRPs) Up to 30 111,839 (45,539) 111,839 (41,880) Customer relationships 10-16 337,189 (165,887) 337,189 (156,442) Patents and technology 4-11 123,433 (96,288) 123,433 (92,875) Trademarks/trade names 10-30 10,949 (10,841) 10,949 (10,772) Other Up to 10 10,135 (3,534) 9,413 (2,966) 893,045 (492,322) 892,323 (469,097) Unamortized intangible assets: Trade names 55,670 — 55,670 — Foreign currency translation (33,471) — (36,404) — Other intangible assets $ 915,244 $ (492,322) $ 911,589 $ (469,097) Amortization of intangible assets for the three and six month periods ended June 30, 2023 was $11,604 and $23,224, respectively. Amortization of intangible assets for the three and six month periods ended June 30, 2022 was $11,593 and $22,171, respectively. Estimated amortization of intangible assets for future periods is as follows: 2023 (remainder) - $28,000; 2024 - $45,000; 2025 - $44,000; 2026 - $43,000; 2027 - $41,000 and 2028 - $35,000. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt and notes and overdrafts payable at June 30, 2023 and December 31, 2022 consisted of: June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Effective Date Credit Agreement $ 462,651 $ 464,699 $ 466,672 $ 464,373 3.97% Senior Notes 100,000 97,277 100,000 96,894 Borrowings under lines of credit and overdrafts 8,011 8,011 8 8 Finance leases 3,766 3,586 4,404 4,085 574,428 573,573 571,084 565,360 Less current maturities (9,498) (1,445) Long-term debt $ 564,930 $ 569,639 In October 2014, the Company entered into a Note Purchase Agreement (“Note Purchase Agreement”), among the Company and New York Life Insurance Company, New York Life Insurance and Annuity Corporation and New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account, as purchasers, for the issuance of $100,000 aggregate principal amount of 3.97% Senior Notes due October 17, 2024 (the “3.97% Senior Notes”). The 3.97% Senior Notes are senior unsecured obligations of the Company and pay interest semi-annually on April 17 and October 17 of each year at an annual rate of 3.97%. The 3.97% Senior Notes will mature on October 17, 2024 unless earlier prepaid in accordance with their terms. Subject to certain conditions, the Company may, at its option, prepay all or any part of the 3.97% Senior Notes in an amount equal to 100% of the principal amount of the 3.97% Senior Notes so prepaid, plus any accrued and unpaid interest to the date of prepayment, plus the Make-Whole Amount, as defined in the Note Purchase Agreement, with respect to such principal amount being prepaid. The fair value of the 3.97% Senior Notes was determined using the U.S. Treasury yield and a long-term credit spread for similar types of borrowings, which represent Level 2 observable inputs. The Note Purchase Agreement contains customary affirmative and negative covenants that are similar to the covenants required under the Existing Credit Agreement, as discussed below. On February 10, 2021, the Company and certain of its subsidiaries entered into the sixth amended and restated senior unsecured revolving credit agreement (the "Existing Credit Agreement") and retained Bank of America, N.A. as the Administrative Agent for the lenders. The $1,000,000 Existing Credit Agreement matures in February 2026 and includes an accordion feature to increase the borrowing availability of the Company to $1,250,000. Borrowings under the Existing Credit Agreement bore interest at either the Eurocurrency rate, as defined in the Existing Credit Agreement, plus a margin of 1.175% to 1.775% or the base rate, as defined in the Existing Credit Agreement, plus a margin of 0.175% to 0.775%, depending on the Company's leverage ratio at the time of the borrowing. Multi-currency borrowings, pursuant to the Existing Credit Agreement, bore interest at their respective interbank offered rate (i.e. Euribor) or 0.00% (higher of the two rates) plus a margin of between 1.175% and 1.775%. The Company's borrowing capacity is limited by various debt covenants in the Existing Credit Agreement, as described further below. The Existing Credit Agreement requires the Company to maintain a Senior Debt Ratio of not more than 3.25 times (or, if a permitted acquisition above $150,000 is consummated, 3.50 times at the end of each of the first four fiscal quarters ending after the consummation of any such acquisition). In addition, the Existing Credit Agreement requires the Company to maintain a Total Debt Ratio of not more than 3.75 times for each fiscal quarter (or, if a permitted acquisition above $150,000 is consummated, 4.25 times at the end of each of the first four fiscal quarters ending after the consummation of any such acquisition). A ratio of Consolidated EBITDA to Consolidated Cash Interest Expense, as defined, of not less than 4.25 times, is required at the end of each fiscal quarter. The Existing Credit Agreement also contemplated the potential replacement of LIBOR (as defined below) with a successor financing rate, pursuant to the intent of the United Kingdom's Financial Conduct Authority to phase out use of LIBOR (see discussion below). The Company paid fees and expenses of $4,306 in conjunction with executing the Existing Credit Agreement. Such fees have been deferred within Other Assets on the Condensed Consolidated Balance Sheets and will be amortized into interest expense on the Condensed Consolidated Statements of Income (Loss) through its maturity. Cash used to pay these fees was recorded through other financing activities on the Condensed Consolidated Statements of Cash Flows. The Company subsequently amended the Existing Credit Agreement on October 11, 2021 (the "LIBOR Transition Amendment"), defining certain applicable multi-currency borrowing rates that may be used as replacement rates for LIBOR, which is expected to be discontinued by reference rate reform. See Note 2 of the Condensed Consolidated Financial Statements, as well as the discussion below. On April 6, 2022, the Company entered into Amendment No. 1 to the Existing Credit Agreement (“Amendment No. 1”), which (i) replaced the LIBOR interest rate for U.S. dollar loans to a term Secured Overnight Financing Rate including a Secured Overnight Financing Rate adjustment (or "SOFR", as defined in the Existing Credit Agreement), (ii) added a daily SOFR option for U.S. dollar loans and a term SOFR option for U.S. dollar loans, and (iii) added the ability to borrow foreign swing line loans based on the Euro Short Term Rate ("€STR") (as defined) with the same interest spread as the interest spread for SOFR Loans (as defined) and Alternative Currency Loans (defined as loans denominated in Euro, Sterling, Swiss Francs or Yen). In addition, Amendment No. 1 lowered the interest rate spread on (i) SOFR Loans and Alternative Currency Loans to a range from 0.975% to 1.70%, depending on the leverage ratio (the “Leverage Ratio”) of Consolidated Total Debt (as defined) to Consolidated EBITDA (as defined) as of the end of each fiscal quarter, and (ii) loans based on the Base Rate (as defined), to a range from 0.00% to 0.70%, depending on the Company’s Leverage Ratio as of the end of each fiscal quarter. Amendment No. 1 also lowered the facility fee, which is required to be paid by the Company under the Existing Credit Agreement and is calculated on the full amount of the revolving facility, to a range from 0.15% to 0.30%, depending on the Company’s Leverage Ratio at the end of each fiscal quarter. In April 2022, the Company paid fees and expenses of $1.0 million in conjunction with executing Amendment No. 1. Such fees have been deferred within Other Assets on the Condensed Consolidated Balance Sheets and will be amortized into interest expense on the Condensed Consolidated Statements of Income (Loss) through the maturity of Existing Credit Agreement. Cash used to pay these fees was recorded through other financing activities on the Condensed Consolidated Statements of Cash Flows. The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate (“LIBOR”), announced its intent to phase out the use of LIBOR by December 31, 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, identified SOFR as its preferred benchmark alternative to U.S. dollar LIBOR. Published by the Federal Reserve Bank of New York, SOFR represents a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is calculated based on directly observable U.S. Treasury-backed repurchase transactions. The Company’s Existing Credit Agreement and corresponding interest rate swap were tied to LIBOR, with each maturing in February 2026. In March 2021, the ICE Benchmark Association announced that it would extend the publication of overnight, 1, 3, 6 and 12 month LIBOR rates until June 30, 2023, while ceasing publication of all other LIBOR rates including 1 week and 2 month rates. The Company's Existing Credit Agreement was further amended in October 2021 and in April 2022 to address the replacement of LIBOR, which, as a result of the Company's contract amendments as discussed above, did not have a material impact on our business, financial condition, results of operations or cash flow. On June 5, 2023, the Company entered into a Stock Purchase Agreement (the “Agreement”) with MB Aerospace Group Holdings Limited, a Cayman Islands limited company. See Note 15. The Company agreed to acquire MB Aerospace by acquiring all the issued and outstanding capital stock of MB Aerospace Holdings Inc., a Delaware corporation ("MB Aerospace"), along with such entity’s subsidiaries (the “Transaction”) for an aggregate purchase price of $740,000, payable in cash, subject to customary and specified closing adjustments, as set forth in the Agreement. In connection with entry into the Agreement, on June 5, 2023, the Company entered into the Second Amendment to Note Purchase Agreement (the “Second Amendment”) and Amendment No. 2 to Existing Credit Agreement ("Amendment No. 2") to facilitate the Transaction, as well as a commitment letter with Bank of America, N.A. and BofA Securities, Inc. (collectively, the “Commitment Parties”), pursuant to which the Commitment Parties agreed to provide, subject to the satisfaction of customary closing conditions contained therein, a $1,000,000 backstop senior secured revolving credit facility and a $700,000 senior secured 364-day bridge loan facility ("Bridge Loan Facility"). The Bridge Loan Facility is only intended to be drawn to the extent that the Company has not obtained alternative financing prior to the closing of the Transaction. On June 22, 2023, in connection with the Transaction, the Company entered into Amendment No. 3 to the Existing Credit Agreement (the “Amendment No. 3”). Upon the effectiveness of Amendment No. 3, the Existing Credit Agreement was amended (as amended, the “Effective Date Credit Agreement”) to, among other things, include customary “certain funds” provisions applicable to a portion of the revolving commitments in an amount equal to $300,000 plus the amount needed for a redemption of the Company's existing 3.97% Senior Notes due 2024. Upon the close of the Transaction, certain amendments to the Effective Date Credit Agreement will become effective (as amended, the “Closing Date Credit Agreement”) to permit the Transaction, including, among other things, to: (i) permit the assumption and/or incurrence of indebtedness and liens in connection with the Transaction; (ii) remove the Senior Debt Ratio in conjunction with the repayment of the Note Purchase Agreement ; (iii) increase the maximum leverage ratio to 5.50:1, subject to step-downs to (a) 5.00:1 beginning with the fiscal period ending June 30, 2024, (b) 4.50:1 beginning with the fiscal period ending December 31, 2024 and (c) 4.00:1 beginning with the fiscal period ending June 30, 2025, subject to a 0.50:1 step up in connection with permitted acquisitions on and after June 30, 2024; (iv) lower the minimum interest coverage ratio to 3.00:1; (v) grant the administrative agent (for the benefit of the secured lenders) a security interest in substantially all of the present and after-acquired assets of the Company and each guarantor (subject to certain exceptions); (vi) increase the Applicable Margin (as defined in the Closing Date Credit Agreement) to a range from 1.375% to 2.50% for €STR, SOFR, and alternative currency loans and to a range from 0.375% to 1.50% for base rate loans, in each case depending on the leverage ratio; and (vii) make certain other changes set forth therein. Borrowings and availability under the Effective Date Credit Agreement were $462,651 and $537,349, respectively, at June 30, 2023 and $466,672 and $533,328, respectively, at December 31, 2022, subject to covenants in the Company's revolving debt agreements. At June 30, 2023, additional borrowings of $266,029 of Total Debt (including $153,968 of Senior Debt) would have been allowed under the financial covenants. The average interest rate on these borrowings was 5.01% and 3.67% on June 30, 2023 and December 31, 2022, respectively. Borrowings included Euro-denominated borrowings of 296,500 Euros ($322,651) at June 30, 2023 and 310,700 Euros ($331,672) at December 31, 2022. The fair value of the borrowings is based on observable Level 2 inputs. The borrowings were valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings. At June 30, 2023, the Company was in compliance with all applicable covenants. The Company anticipates continued compliance in each of the next four quarters. The Company's most restrictive financial covenant is the Senior Debt Ratio, which required the Company to maintain a ratio of Consolidated Senior Debt to Consolidated EBITDA of not more than 3.25 times at June 30, 2023. The actual ratio, as defined, was 2.56 at June 30, 2023. In addition, the Company has approximately $71,000 in uncommitted short-term bank credit lines ("Credit Lines") and overdraft facilities. The Credit Lines are accessed locally and are available primarily within the U.S., Europe and Asia. The Credit Lines are subject to the applicable borrowing rates within each respective country and vary between jurisdictions (i.e. LIBOR, Euribor, etc.). Under the Credit Lines, $8,000 was borrowed at June 30, 2023 at an average interest rate of 6.6%. The Company had no borrowings under the Credit Lines at December 31, 2022. The Company had borrowed $11 and $8 under the overdraft facilities at June 30, 2023 and December 31, 2022, respectively. Repayments under the Credit Lines are due within one month after being borrowed. Repayments of the overdrafts are generally due within two days after being borrowed. The carrying amounts of the Credit Lines and overdrafts approximate fair value due to the short maturities of these financial instruments. The Company also has several finance leases under which $3,766 and $4,404 was outstanding at June 30, 2023 and December 31, 2022, respectively. The fair value of the finance leases is based on observable Level 2 inputs. These instruments were valued using discounted cash flows based upon the Company's estimated interest costs for similar types of borrowings. |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives The Company has manufacturing, service and sales facilities around the world and thus makes investments and conducts business transactions denominated in various currencies. The Company is also exposed to fluctuations in interest rates and commodity price changes. These financial exposures are monitored and managed by the Company as an integral part of its risk management program. Derivative financial instruments have been used by the Company to hedge its exposure to fluctuations in interest rates. On April 28, 2017, the Company entered into an interest rate swap agreement (the "2017 Swap") with one bank which converted the interest on the first $100,000 of the Company's one-month LIBOR-based borrowings from a variable rate plus the borrowing spread to a fixed rate of 1.92% plus the borrowing spread. The 2017 Swap expired on January 31, 2022. On March 24, 2021, the Company entered into a new interest rate swap agreement (the "2021 Swap") with this same bank that commenced on January 31, 2022 and that converted the interest on the first $100,000 of the Company's one-month LIBOR-based borrowings from a variable rate plus the borrowing spread to a fixed rate of 1.17% plus the borrowing spread. On April 6, 2022, the Company entered into Amendment No. 1 to the Existing Credit Agreement, which replaced the LIBOR interest rate for U.S. dollar loans with the SOFR rate (see Note 8). As a result, in May 2022 the Company subsequently amended the 2021 Swap (the "Amended 2021 Swap"), effective April 30, 2022, such that the one-month SOFR-based borrowing rate replaced the one-month LIBOR-based borrowing rate. The Amended 2021 Swap, which will expire on January 30, 2026, converts the interest on the first $100,000 of the Company's one-month SOFR-based borrowings from a variable rate plus the borrowing spread to a fixed rate of 1.075% plus the borrowing spread. The execution of the Amended 2021 Swap did not result in a material impact on our business, financial condition, results of operations or cash flow. On July 19, 2023, the Company entered into an interest rate swap agreement (the "2023 Swap") with one bank that will commence on July 31, 2023, which converts the interest on the first €150,000 of the Company's Euribor-based borrowings from a variable rate plus the borrowing spread to a fixed rate of 3.257% plus the borrowing spread. Per the 2023 Swap, €50,000 will expire on July 31, 2026, with the remaining balance of €100,000 expiring on July 31, 2028. The execution of the 2023 Swap did not result in a material impact on our business, financial condition, results of operations or cash flow. These interest rate swap agreements (the "Swaps") are accounted for as cash flow hedges. The Company also uses derivative financial instruments to hedge its exposures to fluctuations in foreign currency exchange rates. The Company has various contracts outstanding which primarily hedge recognized assets or liabilities and anticipated transactions in various currencies including the Euro, British pound sterling, U.S. dollar, Canadian dollar, Japanese yen, Singapore dollar, Korean won, Swedish kroner, Chinese renminbi, Mexican peso, Hong Kong dollar and Swiss franc. Certain foreign currency derivative instruments are treated as cash flow hedges of forecasted transactions. All foreign exchange contracts are due within two years. The Company does not use derivatives for speculative or trading purposes or to manage commodity exposures. The Company records the derivatives at fair value on the Condensed Consolidated Balance Sheets within Prepaid Expenses and Other Current Assets, Other Assets, Accrued Liabilities or Other Liabilities depending on their fair value and remaining contractual period. Changes in the fair market value of derivatives accounted for as cash flow hedges are recorded to accumulated other comprehensive income (loss) and reclassified to earnings in a manner that matches the earnings impact of the hedged transaction. Reclassifications to earnings for the Swaps are recorded through interest expense and reclassifications to earnings for foreign exchange contracts are recorded through net sales. Changes in the fair market value of the foreign exchange contracts that are not designated hedging instruments are recorded directly to earnings through Other expense (income), net. The fair values of the Amended 2021 Swap were $8,684 and $8,535 as of June 30, 2023 and December 31, 2022, respectively, and were recorded in Other Assets in the Condensed Consolidated Balance Sheets for the periods. The fair values of the Company's other derivatives were not material to the Company's Condensed Consolidated Balance Sheets as of June 30, 2023 or December 31, 2022. See Note 10. The activity related to the derivatives that have been designated hedging instruments was not material to the Company's Condensed Consolidated Financial Statements for the periods ended June 30, 2023 or 2022. The Company recognized losses of $4,548 and $9,325 related to the foreign exchange contracts that are not accounted for as hedging instruments within other expense (income), net, in the Condensed Consolidated Statements of Income (Loss) for the three -month periods ended June 30, 2023 and 2022, respectively. The Company recognized losses of $2,949 and $10,577 related to the foreign exchange contracts that are not accounted for as hedging instruments within Other Expense (income), net, in the Consolidated Statements of Income (Loss) for the six month periods ended June 30, 2023 and 2022, respectively. Such losses were substantially offset by net gains recorded on the underlying hedged asset or liability (the "underlying"). Offsetting net gains on the underlying are also recorded within Other expense (income), net. The Company's policy for classifying cash flows from derivatives is to report the cash flows consistent with the underlying hedged item. Other financing cash flows during the six month periods ended June 30, 2023 and 2022, as presented on the Condensed Consolidated |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The provisions of the accounting standard for fair value define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This standard classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. The following table provides the assets and liabilities reported at fair value and measured on a recurring basis as of June 30, 2023 and December 31, 2022: Fair Value Measurements Using Description Total Quoted Prices in Active Markets for Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs June 30, 2023 Asset derivatives $ 8,700 $ — $ 8,700 $ — Liability derivatives (2,514) — (2,514) — Bank acceptances 11,387 — 11,387 — Rabbi trust assets 2,177 2,177 — — Total $ 19,750 $ 2,177 $ 17,573 $ — December 31, 2022 Asset derivatives $ 8,856 $ — $ 8,856 $ — Liability derivatives (1,023) — (1,023) — Bank acceptances 13,260 — 13,260 — Rabbi trust assets 2,104 2,104 — — Total $ 23,197 $ 2,104 $ 21,093 $ — |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Pension and other postretirement benefits (income) cost consisted of the following: Three Months Ended Six Months Ended Pensions 2023 2022 2023 2022 Service cost $ 577 $ 1,328 $ 1,350 $ 2,883 Interest cost 4,801 3,434 9,696 6,868 Expected return on plan assets (7,449) (7,257) (14,983) (14,538) Amortization of prior service cost 83 99 170 207 Amortization of actuarial losses 420 3,518 838 6,657 Curtailment gain (668) — (668) — Settlement gain (731) — (731) — Special termination benefits — — — 136 Net periodic benefit (income) cost $ (2,967) $ 1,122 $ (4,328) $ 2,213 Three Months Ended Six Months Ended Other Postretirement Benefits 2023 2022 2023 2022 Service cost $ 6 $ 15 $ 19 $ 39 Interest cost 274 203 560 409 Amortization of prior service cost 2 9 5 18 Amortization of actuarial (gains) losses (47) (1) (73) (1) Net periodic benefit cost $ 235 $ 226 $ 511 $ 465 The service cost component of net periodic benefit cost is included within Cost of sales and Selling and administrative expenses. The components of net periodic benefit (income) cost other than the service cost component are included in Other income (expense) on the Condensed Consolidated Statements of Income (Loss). See Note 13. In July 2022, the Company authorized restructuring actions, which resulted in pension curtailment and settlement gains of $668 and $476, respectively, during the three months ended June 30, 2023. See Note 16. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the first half of 2023 was 21.8% compared with (267.2)% in the first half of 2022 and 64.7% for the full year 2022. The decrease in the effective tax rate in the first half of 2023 as compared with the rate for the full year 2022 is primarily due to the absence of a goodwill impairment charge of $68,194, which was not tax deductible for book purposes. Additional drivers causing the decrease in the effective tax rate in the first half of 2023, as compared with the full year 2022 rate, include a reduction of disallowed expenses related to Section 162(m) for covered employee’s compensation, a lower impact of GILTI tax and a favorable mix of non-U.S. earnings. The Aerospace and Industrial segments have a number of multi-year tax holidays in China, Malaysia and Singapore. The China holiday was granted in 2021 and provides for a corporate income tax of 15% for the approved businesses. The China holiday runs for a three-year period ending December 31, 2023. It is anticipated that the company will re-apply for the China holiday in 2024. Aerospace was granted an income tax holiday for operations recently established in Malaysia. The Malaysia holiday commenced effective November 2020 (retroactively) and remains effective for a period of ten years. The Aerospace segment was granted additional tax holidays in Singapore under the Pioneer program in the fourth quarter of 2022. The Singapore holiday provides reduced tax rates for certain Aerospace programs manufactured at the Singapore location and will run through December 2025. All of the holidays are subject to the Company meeting certain commitments in the respective jurisdictions. In October 2021, the Organization for Economic Co-operation and Development ("OECD") introduced an inclusive framework to address tax challenges arising from the digitalization of the economy through a two-pillar solution. One of the components of the solution is the implementation of a global minimum corporate tax rate of 15% for large multinational corporations (“Pillar Two”). The Company is currently evaluating the potential impact of Pillar Two on our Consolidated Financial Statements and related disclosures . |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) by Component | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) by Component | Changes in Accumulated Other Comprehensive Income (Loss) by Component The following tables set forth the changes in accumulated other comprehensive income (loss), net of tax, by component for the six month periods ended June 30, 2023 and 2022: Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total December 31, 2022 $ 5,941 $ (108,640) $ (117,801) $ (220,500) Other comprehensive (loss) income before reclassifications 987 10,518 4,136 15,641 Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) (1,138) (247) — (1,385) Net current-period other comprehensive (loss) income (151) 10,271 4,136 14,256 June 30, 2023 $ 5,790 $ (98,369) $ (113,665) $ (206,244) Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total December 31, 2021 $ 160 $ (112,307) $ (39,691) $ (151,838) Other comprehensive income (loss) before reclassifications 3,206 586 (81,805) (78,013) Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) 196 5,265 — 5,461 Net current-period other comprehensive income (loss) 3,402 5,851 (81,805) (72,552) June 30, 2022 $ 3,562 $ (106,456) $ (121,496) $ (224,390) The following table sets forth the reclassifications out of accumulated other comprehensive loss by component for the three month periods ended June 30, 2023 and 2022: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Condensed Consolidated Statements of Income (Loss) Three Months Ended Three Months Ended Cash flow hedges Interest rate contracts $ 988 $ (94) Interest expense Foreign exchange contracts (190) (27) Net sales 798 (121) Total before tax (194) 28 Tax (expense) benefit 604 (93) Net of tax Pension and other postretirement benefit items Amortization of prior service costs $ (85) $ (108) (A) Amortization of actuarial losses (373) (3,517) (A) Curtailment gain 241 — (A) Settlement gain 731 — (A) 514 (3,625) Total before tax 106 852 Tax benefit 620 (2,773) Net of tax Total reclassifications in the period $ 1,224 $ (2,866) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic Pension and Other Postretirement Benefits cost. See Note 11. The following table sets forth the reclassifications out of accumulated other comprehensive loss by component for the six month periods ended June 30, 2023 and 2022: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Loss) Six Months Ended Six Months Ended Cash flow hedges Interest rate contracts $ 1,853 (260) Interest expense Foreign exchange contracts (349) 3 Net sales 1,504 (257) Total before tax (366) 61 Tax benefit 1,138 (196) Net of tax Pension and other postretirement benefit items Amortization of prior service costs $ (175) $ (225) (A) Amortization of actuarial losses (765) (6,656) (A) Curtailment gain 241 — (A) Settlement gain 731 — (A) 32 (6,881) Total before tax 215 1,616 Tax benefit 247 (5,265) Net of tax Total reclassifications in the period $ 1,385 $ (5,461) |
Information on Business Segment
Information on Business Segments | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Information on Business Segments | Information on Business Segments The Company is organized based upon the nature of its products and services and reports under two global business segments: Aerospace and Industrial. Segment information is consistent with how management reviews the businesses, makes investing and resource allocation decisions and assesses operating performance. The Company has not aggregated operating segments for purposes of identifying these two reportable segments. Aerospace is a global manufacturer of complex fabricated and precision machined components and assemblies for turbine engines, nacelles and structures for both commercial and defense-related aircraft. The Aerospace Aftermarket business provides aircraft engine component maintenance, repair and overhaul ("MRO") services, including services performed under our Component Repair Programs (“CRPs”), for many of the world’s major turbine engine manufacturers, commercial airlines and the defense market. The Aerospace Aftermarket activities also include the manufacture and delivery of aerospace aftermarket spare parts, including through revenue sharing programs (“RSPs”) under which the Company receives an exclusive right to supply designated aftermarket parts over the life of specific aircraft engine programs. Industrial is a global provider of highly-engineered, high-quality precision components, products and systems for critical applications serving a diverse customer base in end-markets such as mobility, industrial equipment, automation, personal care, packaging, electronics, and medical devices. Focused on innovative custom solutions, Industrial participates in the design phase of components and assemblies whereby customers receive the benefits of application and systems engineering, new product development, testing and evaluation, and the manufacturing of final products. Products are sold primarily through its direct sales force and global distribution channels. Industrial's Molding Solutions business designs and manufactures customized hot runner systems, advanced mold cavity sensors and process control systems, and precision high cavitation mold assemblies - collectively, the enabling technologies for many complex injection molding applications. Effective January 1, 2023, the Company combined Industrial's Force & Motion Control business and Engineered Components business to form a single new strategic business called Motion Control Solutions business. The Motion Control Solutions business provides innovative cost effective force and motion control solutions for a wide range of metal forming and other industrial markets. The Motion Control Solutions business also manufactures and supplies precision mechanical products used in mobility and industrial applications, including mechanical springs, and high-precision punched and fine-blanked components. The Automation business designs and develops robotic grippers, advanced end-of-arm tooling systems, sensors and other automation components for intelligent robotic handling solutions and industrial automation applications. The following tables set forth information about the Company's operations by its two reportable segments: Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales Industrial $ 216,971 $ 212,115 $ 435,079 $ 423,787 Aerospace 122,015 109,153 239,272 209,864 Intersegment sales (2) — (10) — Total net sales $ 338,984 $ 321,268 $ 674,341 $ 633,651 Operating profit (loss) Industrial (A) $ 9,429 $ (48,743) $ 13,962 $ (33,990) Aerospace 16,580 20,556 35,331 36,916 Total operating profit (loss) 26,009 (28,187) 49,293 2,926 Interest expense 6,512 3,325 11,819 6,893 Other expense (income), net (2,894) (403) (1,553) 1,226 Income (loss) before income taxes $ 22,391 $ (31,109) $ 39,027 $ (5,193) (A) Industrial operating losses in the three and six-month periods ended June 30, 2022 include a $68,194 goodwill impairment charge. June 30, 2023 December 31, 2022 Assets Industrial $ 1,698,451 $ 1,680,415 Aerospace 606,262 590,598 Other (A) 135,966 142,717 Total assets $ 2,440,679 $ 2,413,730 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Product Warranties The Company provides product warranties in connection with the sale of certain products. From time to time, the Company is subject to customer claims with respect to product warranties. The Company accrues its estimated exposure for warranty claims at the time of sale based upon the length of the warranty period, historical experience and other related information known to the Company. Liabilities related to product warranties and extended warranties were not material as of June 30, 2023 and December 31, 2022. In July 2021, a customer asserted breach of contract and contractual warranty claims regarding a part manufactured by the Company. The Company disputes the asserted claims and no litigation or other proceeding has been initiated. While it is currently not possible to determine the ultimate outcome of this matter, the Company intends to vigorously defend its position and believes that the ultimate resolution will not have a material adverse effect on the Company’s consolidated financial position or liquidity, but could be material to the consolidated results of operations of any one period. Litigation The Company is subject to litigation from time to time in the ordinary course of business and various other suits, proceedings and claims are pending involving the Company and its subsidiaries. The Company records a loss contingency liability when a loss is considered probable and the amount can be reasonably estimated. While it is not possible to determine the ultimate disposition of each of these proceedings and whether they will be resolved consistent with the Company's beliefs, the Company expects that the outcome of such proceedings, individually or in the aggregate, will not have a material adverse effect on financial condition or results of operations. Supplier Finance Programs The Company participates in a Supplier Finance Program (the "Program") under which it agrees to pay a third-party finance provider the stated amount of confirmed invoices from participating suppliers based on the original invoice due date. Suppliers, at their sole discretion, may elect to finance confirmed invoices prior to their scheduled due date at a discounted price with the Company's third-party finance provider. Outstanding obligations related to the Program were not material as of June 30, 2023 and December 31, 2022. These obligations were recorded within Accounts Payable on the Condensed Consolidated Balance Sheets. The Company does not have any assets nor any other forms of guarantees pledged as security to the third-party finance provider as part of the Program . Pending Acquisition On June 5, 2023, the Company entered into the Agreement with MB Aerospace Group Holdings Limited, a Cayman Islands limited company. Pursuant to the Agreement, subject to the terms and conditions set forth therein, the Company agreed to acquire MB Aerospace, a leading provider of precision aero-engine component manufacture and repair services serving major aerospace and defense engine OEMs, tier 1 suppliers, and MRO providers by acquiring all the issued and outstanding capital stock of MB Aerospace Holdings Inc., a Delaware corporation, along with such entity’s subsidiaries for an aggregate purchase price of $740,000, payable in cash, subject to customary and specified closing adjustments, as set forth in the Agreement. The closing of the Transaction is subject to certain customary closing conditions and is expected to close by the end of 2023. Approximately $15,000 of pre-tax financial and advisory fees related to the Transaction are contingent upon a successful close. |
Business Reorganization
Business Reorganization | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Business Reorganization | Business Reorganizations In July 2022, the Company authorized restructuring actions (“2022 Actions”) focused on the consolidation of two manufacturing sites and a number of branch offices and changes in infrastructure to eliminate certain roles across a number of locations in the Industrial segment businesses. Resulting pre-tax charges of $17,986 were recorded in the second half of 2022. Of the aggregate, $11,880 related to employee termination costs, primarily employee severance and other termination benefits, which are expected to be paid in cash by the end of 2023 and which were recorded within Selling and administrative expenses. The remaining $6,106 primarily related to $3,186 of accelerated depreciation of assets and $1,417 of pension curtailment losses and special termination benefits which were recorded in Cost of sales and Other expense (income), net, respectively. During the second quarter of 2023, additional pre-tax charges of $1,974, including $796 of accelerated depreciation of assets and $2,108, primarily related to transfer of work charges, were recorded within Cost of sales, $214 of special employee termination benefits, were recorded within Selling and administrative expenses, and $1,144 of pension settlement and curtailment gains were included within Other income (expense), net, in the accompanying Condensed Consolidated Statements of Income (Loss). During the first half of 2023, additional pre-tax charges of $5,964, including $2,389 of accelerated depreciation of assets and $3,961, primarily related to transfer of work charges, were recorded within Cost of sales, $758 of special employee termination benefits, were recorded within Selling and administrative expenses, and $1,144 of pension curtailment and settlement gains recorded were included within Other income (expense), net, in the accompanying Condensed Consolidated Statements of Income (Loss). A corresponding liability of $6,302, per below, related to the employee termination costs remained and was included within accrued liabilities as of June 30, 2023. The Company expects to incur additional costs of approximately $2,000 in 2023 related to the 2022 Actions, including approximately $1,000 of additional accelerated depreciation and $1,000 of transfer of work charges. Of this $2,000, approximately $1,000 is payable in cash. The 2022 Actions are expected to be predominately completed in 2023. The following table sets forth the change in the liability for the employee termination benefits related to the 2022 Actions: December 31, 2022 $ 10,900 Employee severance and other termination benefits (184) Payments (4,414) June 30, 2023 $ 6,302 In April 2023, the Company authorized additional restructuring actions (“2023 Actions”) focused on manufacturing footprint optimization, including the consolidation of manufacturing sites and optimization of production. The 2023 Actions include the geographic transfer of certain programs within both the Industrial and Aerospace segments and changes in infrastructure to drive improvements and efficiencies in business processes, including the elimination of certain roles across several locations. Resulting pre-tax charges of $9,519 were recorded in the second quarter of 2023. Of the aggregate, $9,163 related to employee termination costs, primarily employee severance and other termination benefits, which are expected to be paid in cash by the end of 2025 and which were recorded within Selling and administrative Expenses. The remaining $356 primarily related to accelerated rent expenses and consulting fees, which were recorded within Selling and administrative expenses, in the accompanying Condensed Consolidated Statements of Income (Loss). Of the aggregate charges recorded, $9,294 was reflected within the results of the Industrial segment and $225 was reflected within the results of the Aerospace segment. A corresponding liability of $9,024, per below, related to the employee termination costs remained and was included within accrued liabilities as of June 30, 2023. The Company expects to incur additional costs of approximately $7,000 in 2023 related to the 2023 Actions, including approximately $4,000 of additional severance and other termination benefits related to the Aerospace segment and $3,000 of additional transfer of work charges and other restructuring costs related to the Industrial segment, all of which is payable in cash. The Company also expects to incur additional costs beyond 2023 of approximately $12,000 related to the 2023 Actions, which are primarily related to transfer of work charges. Of the aggregate, approximately $8,000 and $4,000 relate to the Aerospace and Industrial segments, respectively. The 2023 Actions are expected to be completed throughout multiple periods, with completion in 2025. The following table sets forth the change in the liability for the employee termination benefits related to the 2023 Actions: December 31, 2022 $ — Employee severance and other termination benefits 9,163 Payments (139) June 30, 2023 $ 9,024 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 17,352 | $ (39,552) | $ 30,511 | $ (19,068) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Issued Accounting Standards | In October 2021, the FASB amended its guidance related to business combinations. The amended guidance requires entities to recognize and measure contract assets and contract liabilities acquired in business combinations on the acquisition date in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers . The new guidance is effective on a prospective basis for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. The Company adopted this guidance, on a prospective basis, on January 1, 2023 and will apply the guidance to future acquisitions. In September 2022, the FASB amended its guidance related to supplier finance programs. The amended guidance requires additional disclosures surrounding the use of supplier finance programs to purchase goods or services including disclosing the key terms of the programs, the amount of obligations outstanding at the end of the reporting period, and a roll-forward of those obligations. The new guidance, except the amendment on roll-forward information, is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendment on roll-forward information is effective for fiscal years beginning after December 15, 2023. The Company adopted this guidance within the Condensed Consolidated Financial Statements filed as of March 31, 2023 and it did not have a material impact on the Company's Condensed Consolidated Financial Statements, however it did result in additional disclosures pursuant to the new guidance. See Note 15 of the Condensed Consolidated Financial Statements. Recently Issued Accounting Standards The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate (“LIBOR”), announced its intent to phase out the use of LIBOR by December 31, 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, identified the Secured Overnight Financing Rate (“SOFR”) as its preferred benchmark alternative to U.S. dollar LIBOR. Published by the Federal Reserve Bank of New York, SOFR represents a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is calculated based on directly observable U.S. Treasury-backed repurchase transactions. In March 2020, in response to this transition, the FASB issued guidance related to this rate reform, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued by reference rate reform, and addresses operational issues likely to arise in modifying contracts to replace discontinued reference rates with new rates. In January 2021, the FASB issued further clarifying guidance regarding derivatives, as it relates to this transition. In December 2022, the FASB extended the expiration of the guidance through December 31, 2024. The Company’s Existing Credit Agreement (Note 8) and corresponding USD interest |
Fair Value Measurements | The provisions of the accounting standard for fair value define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This standard classifies the inputs used to measure fair value into the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 Unobservable inputs for the asset or liability. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's revenue disaggregated by products and services, and geographic regions, by segment: Three Months Ended Three Months Ended Industrial Aerospace Total Company Industrial Aerospace Total Company Products and Services Motion Control Solutions Products (A) $ 100,440 $ — $ 100,440 $ 95,547 $ — 95,547 Molding Solutions Products 100,127 — 100,127 101,209 — 101,209 Automation Products 16,402 — 16,402 15,359 — 15,359 Aerospace Original Equipment Manufacturing Products — 75,362 75,362 — 69,503 69,503 Aerospace Aftermarket Products and Services — 46,653 46,653 — 39,650 39,650 $ 216,969 $ 122,015 $ 338,984 $ 212,115 $ 109,153 $ 321,268 Geographic Regions (B) Americas $ 93,254 $ 87,849 $ 181,103 $ 88,970 $ 80,766 $ 169,736 Europe 81,021 20,401 101,422 74,770 18,663 93,433 Asia 40,821 11,641 52,462 46,670 8,347 55,017 Rest of World 1,873 2,124 3,997 1,705 1,377 3,082 $ 216,969 $ 122,015 $ 338,984 $ 212,115 $ 109,153 $ 321,268 Six Months Ended Six Months Ended Industrial Aerospace Total Company Industrial Aerospace Total Company Products and Services Motion Control Solutions Products (A) $ 198,914 $ — $ 198,914 $ 188,594 $ — $ 188,594 Molding Solutions Products 203,654 — 203,654 204,245 — 204,245 Automation Products 32,502 — 32,502 30,948 — 30,948 Aerospace Original Equipment Manufacturing Products — 148,100 148,100 — 135,132 135,132 Aerospace Aftermarket Products and Services — 91,171 91,171 — 74,732 74,732 $ 435,070 $ 239,271 $ 674,341 $ 423,787 $ 209,864 $ 633,651 Geographic Regions (B) Americas $ 189,194 $ 172,421 $ 361,615 $ 174,975 $ 153,263 $ 328,238 Europe 160,629 41,068 201,697 157,139 38,484 195,623 Asia 80,932 21,663 102,595 88,489 15,665 104,154 Rest of World 4,315 4,119 8,434 3,184 2,452 5,636 $ 435,070 $ 239,271 $ 674,341 $ 423,787 $ 209,864 $ 633,651 (A) Effective January 1, 2023, the Company combined Industrial's Force & Motion Control and Engineered Components businesses to form a single strategic business unit named Motion Control Solutions. As a result of the combination, Motion Control Solutions Products reflects product revenues that were previously disclosed as Force & Motion Control Products and Engineered Components Products. Prior period amounts have been reclassified to conform to the current year presentation. (B) Sales by geographic region are based on the location to which the product is shipped and services are delivered. |
Contract with Customer, Asset and Liability | Net contract assets (liabilities) consisted of the following: June 30, 2023 December 31, 2022 $ Change % Change Unbilled receivables (contract assets) $ 49,992 $ 42,423 $ 7,569 18 % Contract liabilities (41,640) (27,857) (13,783) 49 % Net contract assets $ 8,352 $ 14,566 $ (6,214) (43) % |
Stockholders Equity (Tables)
Stockholders Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of changes in equity | A schedule of consolidated changes in equity for the six months ended June 30, 2023 is as follows (number of shares in thousands): Common Common Additional Treasury Treasury Retained Accumulated Total December 31, 2022 64,481 $ 645 $ 529,791 13,891 $ (531,507) $ 1,567,898 $ (220,500) $ 1,346,327 Comprehensive income — — — — — 13,159 29,209 42,368 Dividends declared ($0.16 per share) — — — — — (8,096) — (8,096) Residual interest in subsidiary — — (2,381) — — — — (2,381) Employee stock plans 23 — 2,665 6 (252) (83) — 2,330 March 31, 2023 64,504 $ 645 $ 530,075 13,897 $ (531,759) $ 1,572,878 $ (191,291) $ 1,380,548 Comprehensive income — — — — — 17,352 (14,953) 2,399 Dividends declared ($0.16 per share) — — — — — (8,099) — (8,099) Employee stock plans 22 — 2,339 3 (124) (76) — 2,139 June 30, 2023 64,526 $ 645 $ 532,414 13,900 $ (531,883) $ 1,582,055 $ (206,244) $ 1,376,987 A schedule of consolidated changes in equity for the six months ended June 30, 2022 is as follows (number of shares in thousands): Common Common Additional Treasury Treasury Retained Accumulated Total December 31, 2021 64,344 $ 643 $ 516,562 13,658 $ (523,642) $ 1,587,041 $ (151,838) $ 1,428,766 Comprehensive income (loss) — — — — — 20,484 (2,590) 17,894 Dividends declared ($0.16 per share) — — — — — (8,111) — (8,111) Employee stock plans 12 1 2,665 2 (49) (136) — 2,481 March 31, 2022 64,356 $ 644 $ 519,227 13,660 $ (523,691) $ 1,599,278 $ (154,428) $ 1,441,030 Comprehensive loss — — — — — (39,552) (69,962) (109,514) Dividends declared ($0.16 per share) — — — — — (8,081) — (8,081) Common stock repurchases — — — 200 (6,721) — — (6,721) Employee stock plans 23 — 3,548 3 (106) (62) — 3,380 June 30, 2022 64,379 $ 644 $ 522,775 13,863 $ (530,518) $ 1,551,583 $ (224,390) $ 1,320,094 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of changes in equity | A schedule of consolidated changes in equity for the six months ended June 30, 2023 is as follows (number of shares in thousands): Common Common Additional Treasury Treasury Retained Accumulated Total December 31, 2022 64,481 $ 645 $ 529,791 13,891 $ (531,507) $ 1,567,898 $ (220,500) $ 1,346,327 Comprehensive income — — — — — 13,159 29,209 42,368 Dividends declared ($0.16 per share) — — — — — (8,096) — (8,096) Residual interest in subsidiary — — (2,381) — — — — (2,381) Employee stock plans 23 — 2,665 6 (252) (83) — 2,330 March 31, 2023 64,504 $ 645 $ 530,075 13,897 $ (531,759) $ 1,572,878 $ (191,291) $ 1,380,548 Comprehensive income — — — — — 17,352 (14,953) 2,399 Dividends declared ($0.16 per share) — — — — — (8,099) — (8,099) Employee stock plans 22 — 2,339 3 (124) (76) — 2,139 June 30, 2023 64,526 $ 645 $ 532,414 13,900 $ (531,883) $ 1,582,055 $ (206,244) $ 1,376,987 A schedule of consolidated changes in equity for the six months ended June 30, 2022 is as follows (number of shares in thousands): Common Common Additional Treasury Treasury Retained Accumulated Total December 31, 2021 64,344 $ 643 $ 516,562 13,658 $ (523,642) $ 1,587,041 $ (151,838) $ 1,428,766 Comprehensive income (loss) — — — — — 20,484 (2,590) 17,894 Dividends declared ($0.16 per share) — — — — — (8,111) — (8,111) Employee stock plans 12 1 2,665 2 (49) (136) — 2,481 March 31, 2022 64,356 $ 644 $ 519,227 13,660 $ (523,691) $ 1,599,278 $ (154,428) $ 1,441,030 Comprehensive loss — — — — — (39,552) (69,962) (109,514) Dividends declared ($0.16 per share) — — — — — (8,081) — (8,081) Common stock repurchases — — — 200 (6,721) — — (6,721) Employee stock plans 23 — 3,548 3 (106) (62) — 3,380 June 30, 2022 64,379 $ 644 $ 522,775 13,863 $ (530,518) $ 1,551,583 $ (224,390) $ 1,320,094 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | The components of inventories consisted of: June 30, 2023 December 31, 2022 Finished goods $ 99,938 $ 105,965 Work-in-process 78,108 68,664 Raw material and supplies 116,826 108,773 $ 294,872 $ 283,402 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table sets forth the change in the carrying amount of goodwill for each reportable segment and for the Company as of and for the period ended June 30, 2023: Industrial Aerospace Total Company December 31, 2022 (A) $ 804,686 $ 30,786 $ 835,472 Foreign currency translation 6,680 — 6,680 June 30, 2023 $ 811,366 $ 30,786 $ 842,152 (A) Industrial amounts are net of accumulated goodwill impairment losses of $68,194. |
Schedule of Intangible Assets | Other intangible assets consisted of: June 30, 2023 December 31, 2022 Range of Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Amortized intangible assets: Revenue Sharing Programs (RSPs) Up to 30 $ 299,500 $ (170,233) $ 299,500 $ (164,162) Component Repair Programs (CRPs) Up to 30 111,839 (45,539) 111,839 (41,880) Customer relationships 10-16 337,189 (165,887) 337,189 (156,442) Patents and technology 4-11 123,433 (96,288) 123,433 (92,875) Trademarks/trade names 10-30 10,949 (10,841) 10,949 (10,772) Other Up to 10 10,135 (3,534) 9,413 (2,966) 893,045 (492,322) 892,323 (469,097) Unamortized intangible assets: Trade names 55,670 — 55,670 — Foreign currency translation (33,471) — (36,404) — Other intangible assets $ 915,244 $ (492,322) $ 911,589 $ (469,097) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Long-term debt and notes and overdrafts payable at June 30, 2023 and December 31, 2022 consisted of: June 30, 2023 December 31, 2022 Carrying Fair Carrying Fair Effective Date Credit Agreement $ 462,651 $ 464,699 $ 466,672 $ 464,373 3.97% Senior Notes 100,000 97,277 100,000 96,894 Borrowings under lines of credit and overdrafts 8,011 8,011 8 8 Finance leases 3,766 3,586 4,404 4,085 574,428 573,573 571,084 565,360 Less current maturities (9,498) (1,445) Long-term debt $ 564,930 $ 569,639 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides the assets and liabilities reported at fair value and measured on a recurring basis as of June 30, 2023 and December 31, 2022: Fair Value Measurements Using Description Total Quoted Prices in Active Markets for Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs June 30, 2023 Asset derivatives $ 8,700 $ — $ 8,700 $ — Liability derivatives (2,514) — (2,514) — Bank acceptances 11,387 — 11,387 — Rabbi trust assets 2,177 2,177 — — Total $ 19,750 $ 2,177 $ 17,573 $ — December 31, 2022 Asset derivatives $ 8,856 $ — $ 8,856 $ — Liability derivatives (1,023) — (1,023) — Bank acceptances 13,260 — 13,260 — Rabbi trust assets 2,104 2,104 — — Total $ 23,197 $ 2,104 $ 21,093 $ — |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Benefit Costs | Pension and other postretirement benefits (income) cost consisted of the following: Three Months Ended Six Months Ended Pensions 2023 2022 2023 2022 Service cost $ 577 $ 1,328 $ 1,350 $ 2,883 Interest cost 4,801 3,434 9,696 6,868 Expected return on plan assets (7,449) (7,257) (14,983) (14,538) Amortization of prior service cost 83 99 170 207 Amortization of actuarial losses 420 3,518 838 6,657 Curtailment gain (668) — (668) — Settlement gain (731) — (731) — Special termination benefits — — — 136 Net periodic benefit (income) cost $ (2,967) $ 1,122 $ (4,328) $ 2,213 Three Months Ended Six Months Ended Other Postretirement Benefits 2023 2022 2023 2022 Service cost $ 6 $ 15 $ 19 $ 39 Interest cost 274 203 560 409 Amortization of prior service cost 2 9 5 18 Amortization of actuarial (gains) losses (47) (1) (73) (1) Net periodic benefit cost $ 235 $ 226 $ 511 $ 465 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) by Component (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) By Component | The following tables set forth the changes in accumulated other comprehensive income (loss), net of tax, by component for the six month periods ended June 30, 2023 and 2022: Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total December 31, 2022 $ 5,941 $ (108,640) $ (117,801) $ (220,500) Other comprehensive (loss) income before reclassifications 987 10,518 4,136 15,641 Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) (1,138) (247) — (1,385) Net current-period other comprehensive (loss) income (151) 10,271 4,136 14,256 June 30, 2023 $ 5,790 $ (98,369) $ (113,665) $ (206,244) Gains and Losses on Cash Flow Hedges Pension and Other Postretirement Benefit Items Foreign Currency Items Total December 31, 2021 $ 160 $ (112,307) $ (39,691) $ (151,838) Other comprehensive income (loss) before reclassifications 3,206 586 (81,805) (78,013) Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) 196 5,265 — 5,461 Net current-period other comprehensive income (loss) 3,402 5,851 (81,805) (72,552) June 30, 2022 $ 3,562 $ (106,456) $ (121,496) $ (224,390) |
Schedule of Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) to the Consolidated Statements of Income | The following table sets forth the reclassifications out of accumulated other comprehensive loss by component for the three month periods ended June 30, 2023 and 2022: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Condensed Consolidated Statements of Income (Loss) Three Months Ended Three Months Ended Cash flow hedges Interest rate contracts $ 988 $ (94) Interest expense Foreign exchange contracts (190) (27) Net sales 798 (121) Total before tax (194) 28 Tax (expense) benefit 604 (93) Net of tax Pension and other postretirement benefit items Amortization of prior service costs $ (85) $ (108) (A) Amortization of actuarial losses (373) (3,517) (A) Curtailment gain 241 — (A) Settlement gain 731 — (A) 514 (3,625) Total before tax 106 852 Tax benefit 620 (2,773) Net of tax Total reclassifications in the period $ 1,224 $ (2,866) (A) These accumulated other comprehensive income (loss) components are included within the computation of net periodic Pension and Other Postretirement Benefits cost. See Note 11. The following table sets forth the reclassifications out of accumulated other comprehensive loss by component for the six month periods ended June 30, 2023 and 2022: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Consolidated Statements of Income (Loss) Six Months Ended Six Months Ended Cash flow hedges Interest rate contracts $ 1,853 (260) Interest expense Foreign exchange contracts (349) 3 Net sales 1,504 (257) Total before tax (366) 61 Tax benefit 1,138 (196) Net of tax Pension and other postretirement benefit items Amortization of prior service costs $ (175) $ (225) (A) Amortization of actuarial losses (765) (6,656) (A) Curtailment gain 241 — (A) Settlement gain 731 — (A) 32 (6,881) Total before tax 215 1,616 Tax benefit 247 (5,265) Net of tax Total reclassifications in the period $ 1,385 $ (5,461) |
Information on Business Segme_2
Information on Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables set forth information about the Company's operations by its two reportable segments: Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales Industrial $ 216,971 $ 212,115 $ 435,079 $ 423,787 Aerospace 122,015 109,153 239,272 209,864 Intersegment sales (2) — (10) — Total net sales $ 338,984 $ 321,268 $ 674,341 $ 633,651 Operating profit (loss) Industrial (A) $ 9,429 $ (48,743) $ 13,962 $ (33,990) Aerospace 16,580 20,556 35,331 36,916 Total operating profit (loss) 26,009 (28,187) 49,293 2,926 Interest expense 6,512 3,325 11,819 6,893 Other expense (income), net (2,894) (403) (1,553) 1,226 Income (loss) before income taxes $ 22,391 $ (31,109) $ 39,027 $ (5,193) (A) Industrial operating losses in the three and six-month periods ended June 30, 2022 include a $68,194 goodwill impairment charge. June 30, 2023 December 31, 2022 Assets Industrial $ 1,698,451 $ 1,680,415 Aerospace 606,262 590,598 Other (A) 135,966 142,717 Total assets $ 2,440,679 $ 2,413,730 |
Business Reorganization (Tables
Business Reorganization (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Change of Liability for Business Reorganization | The following table sets forth the change in the liability for the employee termination benefits related to the 2022 Actions: December 31, 2022 $ 10,900 Employee severance and other termination benefits (184) Payments (4,414) June 30, 2023 $ 6,302 The following table sets forth the change in the liability for the employee termination benefits related to the 2023 Actions: December 31, 2022 $ — Employee severance and other termination benefits 9,163 Payments (139) June 30, 2023 $ 9,024 |
Revenue - Revenue by Category (
Revenue - Revenue by Category (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 338,984 | $ 321,268 | $ 674,341 | $ 633,651 |
Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 216,969 | 212,115 | 435,070 | 423,787 |
Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 122,015 | 109,153 | 239,271 | 209,864 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 181,103 | 169,736 | 361,615 | 328,238 |
Americas | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 93,254 | 88,970 | 189,194 | 174,975 |
Americas | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 87,849 | 80,766 | 172,421 | 153,263 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 101,422 | 93,433 | 201,697 | 195,623 |
Europe | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 81,021 | 74,770 | 160,629 | 157,139 |
Europe | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 20,401 | 18,663 | 41,068 | 38,484 |
Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 52,462 | 55,017 | 102,595 | 104,154 |
Asia | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 40,821 | 46,670 | 80,932 | 88,489 |
Asia | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 11,641 | 8,347 | 21,663 | 15,665 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3,997 | 3,082 | 8,434 | 5,636 |
Rest of World | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,873 | 1,705 | 4,315 | 3,184 |
Rest of World | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,124 | 1,377 | 4,119 | 2,452 |
Motion Control Solutions Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100,440 | 95,547 | 198,914 | 188,594 |
Motion Control Solutions Products | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100,440 | 95,547 | 198,914 | 188,594 |
Motion Control Solutions Products | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Molding Solutions Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100,127 | 101,209 | 203,654 | 204,245 |
Molding Solutions Products | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 100,127 | 101,209 | 203,654 | 204,245 |
Molding Solutions Products | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Automation Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 16,402 | 15,359 | 32,502 | 30,948 |
Automation Products | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 16,402 | 15,359 | 32,502 | 30,948 |
Automation Products | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Aerospace Original Equipment Manufacturing Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 75,362 | 69,503 | 148,100 | 135,132 |
Aerospace Original Equipment Manufacturing Products | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Aerospace Original Equipment Manufacturing Products | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 75,362 | 69,503 | 148,100 | 135,132 |
Aerospace Aftermarket Products and Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 46,653 | 39,650 | 91,171 | 74,732 |
Aerospace Aftermarket Products and Services | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Aerospace Aftermarket Products and Services | Aerospace | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 46,653 | $ 39,650 | $ 91,171 | $ 74,732 |
Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue transferred percent | 75% | 80% | 80% | 80% |
Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue transferred percent | 25% | 20% | 20% | 20% |
Revenue - Contract Balances (De
Revenue - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Unbilled receivables (contract assets) | $ 49,992 | $ 49,992 | $ 42,423 | |
Unbilled receivables (contract assets), $ Change | $ 7,569 | |||
Unbilled receivables (contract assets), % Change | 18% | |||
Contract liabilities | (41,640) | $ (41,640) | (27,857) | |
Contract liabilities, $ Change | $ (13,783) | |||
Contract liabilities, % Change | 49% | |||
Net contract assets | 8,352 | $ 8,352 | 14,566 | |
Net contract assets, $ Change | $ (6,214) | |||
Net contract assets, % change | (43.00%) | |||
Customer advances | $ 18,686 | $ 18,686 | $ 9,593 | |
Revenue recognized | 30% | 40% | 70% |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 292,489 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, percentage | 75% |
Remaining performance obligation, expected timing | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations, percentage | 30% |
Remaining performance obligation, expected timing | 24 months |
Stockholders Equity (Details)
Stockholders Equity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | $ 1,380,548 | $ 1,346,327 | $ 1,441,030 | $ 1,428,766 | $ 1,346,327 | $ 1,428,766 |
Comprehensive income | 2,399 | 42,368 | (109,514) | 17,894 | 44,767 | (91,620) |
Dividends declared | (8,099) | (8,096) | (8,081) | (8,111) | ||
Common stock repurchases | 6,721 | |||||
Residual interest in subsidiary | (2,381) | |||||
Employee stock plans | 2,139 | 2,330 | 3,380 | 2,481 | ||
Balance at end of period | $ 1,376,987 | $ 1,380,548 | $ 1,320,094 | $ 1,441,030 | $ 1,376,987 | $ 1,320,094 |
Dividends declared (in dollars per share) | $ 0.16 | $ 0.16 | ||||
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period (in shares) | 64,504 | 64,481 | 64,356 | 64,344 | 64,481 | 64,344 |
Balance at beginning of period | $ 645 | $ 645 | $ 644 | $ 643 | $ 645 | $ 643 |
Employee stock plans (in shares) | 22 | 23 | 23 | 12 | ||
Employee stock plans | $ 1 | |||||
Balance at end of period (in shares) | 64,526 | 64,504 | 64,379 | 64,356 | 64,526 | 64,379 |
Balance at end of period | $ 645 | $ 645 | $ 644 | $ 644 | $ 645 | $ 644 |
Additional Paid-In Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 530,075 | 529,791 | 519,227 | 516,562 | 529,791 | 516,562 |
Residual interest in subsidiary | (2,381) | |||||
Employee stock plans | 2,339 | 2,665 | 3,548 | 2,665 | ||
Balance at end of period | $ 532,414 | $ 530,075 | $ 522,775 | $ 519,227 | $ 532,414 | $ 522,775 |
Treasury Stock, Common | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period (in shares) | 13,897 | 13,891 | 13,660 | 13,658 | 13,891 | 13,658 |
Balance at beginning of period | $ (531,759) | $ (531,507) | $ (523,691) | $ (523,642) | $ (531,507) | $ (523,642) |
Common stock repurchases (in shares) | 200 | |||||
Common stock repurchases | $ 6,721 | |||||
Employee stock plans (in shares) | 3 | 6 | 3 | 2 | ||
Employee stock plans | $ (124) | $ (252) | $ (106) | $ (49) | ||
Balance at end of period (in shares) | 13,900 | 13,897 | 13,863 | 13,660 | 13,900 | 13,863 |
Balance at end of period | $ (531,883) | $ (531,759) | $ (530,518) | $ (523,691) | $ (531,883) | $ (530,518) |
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | 1,572,878 | 1,567,898 | 1,599,278 | 1,587,041 | 1,567,898 | 1,587,041 |
Comprehensive income | 17,352 | 13,159 | (39,552) | 20,484 | ||
Dividends declared | (8,099) | (8,096) | (8,081) | (8,111) | ||
Employee stock plans | (76) | (83) | (62) | (136) | ||
Balance at end of period | 1,582,055 | 1,572,878 | 1,551,583 | 1,599,278 | 1,582,055 | 1,551,583 |
Accumulated Other Non-Owner Changes to Equity | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Balance at beginning of period | (191,291) | (220,500) | (154,428) | (151,838) | (220,500) | (151,838) |
Comprehensive income | (14,953) | 29,209 | (69,962) | (2,590) | ||
Balance at end of period | $ (206,244) | $ (191,291) | $ (224,390) | $ (154,428) | $ (206,244) | $ (224,390) |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - shares | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net Income Per Common Share [Line Items] | |||||
Weighted average number of diluted shares outstanding adjustment (in shares) | 173,765 | 224,515 | |||
Share-based Awards | |||||
Net Income Per Common Share [Line Items] | |||||
Antidilutive securities excluded from computation of EPS | 784,087 | 875,544 | 795,032 | 797,194 | |
Stock Options | |||||
Net Income Per Common Share [Line Items] | |||||
Options, granted (in shares) | 120,195 | ||||
Restricted Stock Units | |||||
Net Income Per Common Share [Line Items] | |||||
Other than options, granted (in shares) | 152,476 | ||||
Performance Share Awards | |||||
Net Income Per Common Share [Line Items] | |||||
Other than options, granted (in shares) | 131,025 | ||||
Performance period | 3 years | ||||
Minimum range of target award of stock plan | 0% | ||||
Maximum range of target award of stock plan | 250% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 99,938 | $ 105,965 |
Work-in-process | 78,108 | 68,664 |
Raw material and supplies | 116,826 | 108,773 |
Inventories | $ 294,872 | $ 283,402 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Goodwill: | |||||
Goodwill, beginning of period | $ 835,472 | ||||
Foreign currency translation | 6,680 | ||||
Goodwill, end of period | $ 842,152 | 842,152 | $ 835,472 | ||
Other Intangible Assets: | |||||
Gross Amount | 893,045 | 893,045 | 892,323 | ||
Accumulated Amortization | (492,322) | (492,322) | (469,097) | ||
Foreign currency translation | (33,471) | (33,471) | (36,404) | ||
Other intangible assets | 915,244 | 915,244 | 911,589 | ||
Intangible Assets, Future Amortization Expense | |||||
Amortization of intangible assets | 11,604 | $ 11,593 | 23,224 | $ 22,171 | |
Amortization of intangible assets expected in 2022 | 28,000 | 28,000 | |||
Amortization of intangible assets expected in 2023 | 45,000 | 45,000 | |||
Amortization of intangible assets expected in 2024 | 44,000 | 44,000 | |||
Amortization of intangible assets expected in 2025 | 43,000 | 43,000 | |||
Amortization of intangible assets expected in 2026 | 41,000 | 41,000 | |||
Amortization of intangible assets expected in 2027 | 35,000 | 35,000 | |||
Goodwill, Impaired, Accumulated Impairment Loss | 68,194 | ||||
Goodwill impairment charge | 0 | 68,194 | 0 | $ 68,194 | |
Impairment of trade names | $ 0 | ||||
Trade names | |||||
Other Intangible Assets: | |||||
Unamortized intangible asset | 55,670 | 55,670 | 55,670 | ||
Revenue Sharing Programs (RSPs) | |||||
Other Intangible Assets: | |||||
Gross Amount | 299,500 | 299,500 | 299,500 | ||
Accumulated Amortization | (170,233) | (170,233) | (164,162) | ||
Component Repair Programs (CRPs) | |||||
Other Intangible Assets: | |||||
Gross Amount | 111,839 | 111,839 | 111,839 | ||
Accumulated Amortization | (45,539) | (45,539) | (41,880) | ||
Customer relationships | |||||
Other Intangible Assets: | |||||
Gross Amount | 337,189 | 337,189 | 337,189 | ||
Accumulated Amortization | (165,887) | (165,887) | (156,442) | ||
Patents and technology | |||||
Other Intangible Assets: | |||||
Gross Amount | 123,433 | 123,433 | 123,433 | ||
Accumulated Amortization | (96,288) | (96,288) | (92,875) | ||
Trademarks/trade names | |||||
Other Intangible Assets: | |||||
Gross Amount | 10,949 | 10,949 | 10,949 | ||
Accumulated Amortization | (10,841) | (10,841) | (10,772) | ||
Other | |||||
Other Intangible Assets: | |||||
Gross Amount | 10,135 | 10,135 | 9,413 | ||
Accumulated Amortization | (3,534) | (3,534) | (2,966) | ||
Industrial | |||||
Goodwill: | |||||
Goodwill, beginning of period | 804,686 | ||||
Foreign currency translation | 6,680 | ||||
Goodwill, end of period | 811,366 | 811,366 | 804,686 | ||
Intangible Assets, Future Amortization Expense | |||||
Goodwill, Impaired, Accumulated Impairment Loss | 68,194 | 68,194 | |||
Goodwill impairment charge | (68,194) | ||||
Aerospace | |||||
Goodwill: | |||||
Goodwill, beginning of period | 30,786 | ||||
Foreign currency translation | 0 | ||||
Goodwill, end of period | $ 30,786 | $ 30,786 | $ 30,786 | ||
Minimum | Customer relationships | |||||
Other Intangible Assets: | |||||
Range of life | 10 years | 10 years | |||
Minimum | Patents and technology | |||||
Other Intangible Assets: | |||||
Range of life | 4 years | 4 years | |||
Minimum | Trademarks/trade names | |||||
Other Intangible Assets: | |||||
Range of life | 10 years | 10 years | |||
Maximum | Revenue Sharing Programs (RSPs) | |||||
Other Intangible Assets: | |||||
Range of life | 30 years | 30 years | |||
Maximum | Component Repair Programs (CRPs) | |||||
Other Intangible Assets: | |||||
Range of life | 30 years | 30 years | |||
Maximum | Customer relationships | |||||
Other Intangible Assets: | |||||
Range of life | 16 years | 16 years | |||
Maximum | Patents and technology | |||||
Other Intangible Assets: | |||||
Range of life | 11 years | 11 years | |||
Maximum | Trademarks/trade names | |||||
Other Intangible Assets: | |||||
Range of life | 30 years | 30 years | |||
Maximum | Other | |||||
Other Intangible Assets: | |||||
Range of life | 10 years | 10 years |
Debt - Debt Schedule (Details)
Debt - Debt Schedule (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 05, 2023 | Dec. 31, 2022 | Oct. 31, 2014 |
Debt Instrument [Line Items] | ||||
Carrying amount of debt | $ 8,011 | $ 8 | ||
Carrying amount of finance leases | 3,766 | 4,404 | ||
Fair value of finance leases | 3,586 | 4,085 | ||
Carrying amount of debt and finance leases | 574,428 | 571,084 | ||
Fair value of debt and finance leases | 573,573 | 565,360 | ||
Less current maturities | (9,498) | (1,445) | ||
Long-term debt | 564,930 | 569,639 | ||
Effective Date Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | 466,672 | |||
Fair value of debt | 464,699 | 464,373 | ||
Senior Notes | 3.97% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | 100,000 | 100,000 | ||
Fair value of debt | $ 97,277 | 96,894 | ||
Stated interest rate | 3.97% | 3.97% | 3.97% | |
Lines of Credit and Overdrafts | ||||
Debt Instrument [Line Items] | ||||
Carrying amount of debt | $ 8,011 | 8 | ||
Fair value of debt | $ 8,011 | $ 8 |
Debt - Narrative (Details)
Debt - Narrative (Details) € in Thousands | 6 Months Ended | |||||||
Jun. 05, 2023 USD ($) | Apr. 06, 2022 USD ($) | Feb. 10, 2021 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | Oct. 31, 2014 USD ($) | |
Debt Instrument [Line Items] | ||||||||
Notes and overdrafts payable | $ 8,011,000 | $ 8,000 | ||||||
Finance lease | 3,766,000 | 4,404,000 | ||||||
MB Aerospace Holdings, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Purchase price | $ 740,000,000 | |||||||
Effective Date Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes and overdrafts payable | $ 8,000,000 | 0 | ||||||
Average interest rate | 6.60% | 6.60% | ||||||
Effective Date Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 71,000,000 | |||||||
Carrying amount of debt | 466,672,000 | |||||||
Effective Date Credit Agreement | MB Aerospace Holdings, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate maximum | 5.50 | |||||||
Interest rate minimum | 3 | |||||||
Effective Date Credit Agreement | MB Aerospace Holdings, Inc. | Debt Instrument, Covenant, Period One | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate maximum | 5 | |||||||
Effective Date Credit Agreement | MB Aerospace Holdings, Inc. | Debt Instrument, Covenant, Period Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate maximum | 4.50 | |||||||
Effective Date Credit Agreement | MB Aerospace Holdings, Inc. | Debt Instrument, Covenant, Period Three | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate maximum | 4 | |||||||
Effective Date Credit Agreement | MB Aerospace Holdings, Inc. | Debt Instrument, Covenant, Period Four | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate maximum | 0.50 | |||||||
Effective Date Credit Agreement | MB Aerospace Holdings, Inc. | Revolving Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||
Certain funds provision amount | $ 300,000,000 | |||||||
Effective Date Credit Agreement | MB Aerospace Holdings, Inc. | Bridge Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 700,000,000 | |||||||
Effective Date Credit Agreement | Minimum | Base Rate | MB Aerospace Holdings, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 0.375% | |||||||
Effective Date Credit Agreement | Minimum | Secured Overnight Financing Rate (SOFR) | MB Aerospace Holdings, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 1.375% | |||||||
Effective Date Credit Agreement | Maximum | Base Rate | MB Aerospace Holdings, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 1.50% | |||||||
Effective Date Credit Agreement | Maximum | Secured Overnight Financing Rate (SOFR) | MB Aerospace Holdings, Inc. | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 2.50% | |||||||
Bank Overdrafts | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes and overdrafts payable | $ 11,000 | 8,000 | ||||||
Repayment period | 2 days | |||||||
3.97% Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, face amount | $ 100,000,000 | |||||||
Stated interest rate | 3.97% | 3.97% | 3.97% | 3.97% | ||||
Percent allowed to be prepaid | 100% | |||||||
Carrying amount of debt | $ 100,000,000 | 100,000,000 | ||||||
Sixth Amendment Maturity February 2022 | Effective Date Credit Agreement | Euribor | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 1.175% | |||||||
Sixth Amendment Maturity February 2022 | Effective Date Credit Agreement | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 0.175% | |||||||
Sixth Amendment Maturity February 2022 and 3.97% Percent Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying amount of debt | 466,672,000 | |||||||
Remaining borrowing capacity | 533,328,000 | |||||||
Sixth Amendment Maturity February 2022 and 3.97% Percent Senior Notes | Euro Member Countries, Euro | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying amount of debt | $ 331,672,000 | € 310,700 | ||||||
Line of credit, interest rate at period end | 3.67% | 3.67% | ||||||
Sixth Admendment Maturity February 2026 | Effective Date Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000,000 | |||||||
Debt covenant ratio of senior debt to EBITDA | 3.25 | 3.25 | ||||||
Debt covenant threshold for permitted acquisition | $ 150,000,000 | |||||||
Debt covenant material acquisition, senior debt to EBITDA | 3.50 | |||||||
Debt covenant ratio of total debt to EBITDA | 3.75 | |||||||
Fees and expenses for executing admendments | $ 4,306,000 | |||||||
Line of credit facility with accordian feature, maximum borrowing capacity | $ 1,250,000,000 | |||||||
Debt covenant material acquisition, debt to EBITDA | 4.25 | |||||||
Debt covenant ratio of EBITDA to cash interest expense | 4.25 | |||||||
Senior debt to consolidated EBITDA at period end | 2.56 | 2.56 | ||||||
Sixth Admendment Maturity February 2026 | Effective Date Credit Agreement | Euribor | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 1.775% | |||||||
Sixth Admendment Maturity February 2026 | Effective Date Credit Agreement | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 0.775% | |||||||
Sixth Admendment Maturity February 2026 | Effective Date Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt covenant ratio of senior debt to EBITDA | 3.25 | |||||||
Sixth Admendment Maturity February 2026, Multicurrency Borrowings | Effective Date Credit Agreement | Euribor | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis for variable basis spread | 0% | |||||||
Sixth Admendment Maturity February 2026, Multicurrency Borrowings | Effective Date Credit Agreement | Minimum | Euribor | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 1.175% | |||||||
Sixth Admendment Maturity February 2026, Multicurrency Borrowings | Effective Date Credit Agreement | Maximum | Euribor | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 1.775% | |||||||
Sixth Admendment Maturity February 2026 and 3.97% Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying amount of debt | $ 462,651,000 | |||||||
Remaining borrowing capacity | 537,349,000 | |||||||
Additional borrowings allowed under financial covenants | 266,029,000 | |||||||
Sixth Admendment Maturity February 2026 and 3.97% Senior Notes | Euro Member Countries, Euro | ||||||||
Debt Instrument [Line Items] | ||||||||
Carrying amount of debt | $ 322,651,000 | € 296,500 | ||||||
Line of credit, interest rate at period end | 5.01% | 5.01% | ||||||
Sixth Admendment Maturity February 2026 and 3.97% Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional borrowings allowed under financial covenants | $ 153,968,000 | |||||||
Amendment No. 1 | Effective Date Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee amount | $ 1,000,000 | |||||||
Amendment No. 1 | Effective Date Credit Agreement | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.15% | |||||||
Amendment No. 1 | Effective Date Credit Agreement | Minimum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 0% | |||||||
Amendment No. 1 | Effective Date Credit Agreement | Minimum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 0.975% | |||||||
Amendment No. 1 | Effective Date Credit Agreement | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.30% | |||||||
Amendment No. 1 | Effective Date Credit Agreement | Maximum | Base Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 0.70% | |||||||
Amendment No. 1 | Effective Date Credit Agreement | Maximum | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable basis spread | 1.70% |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) € in Thousands | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jul. 19, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Apr. 30, 2022 | Mar. 24, 2021 USD ($) | Apr. 28, 2017 USD ($) Bank | |
Derivative [Line Items] | |||||||||
Asset fair value | $ 8,684,000 | $ 8,684,000 | $ 8,535,000 | ||||||
Net cash payments from settlement | (3,764,000) | $ (9,825,000) | |||||||
Foreign Exchange Contract | |||||||||
Derivative [Line Items] | |||||||||
Net cash payments from settlement | 1,176,000 | 8,690,000 | |||||||
Foreign Exchange Contract | Other Nonoperating Income (Expense) | |||||||||
Derivative [Line Items] | |||||||||
Amount of gain (loss) recognized in income on derivative | $ (4,548,000) | $ (9,325,000) | $ (2,949,000) | $ (10,577,000) | |||||
Derivatives designated as hedging instruments | Interest Rate Contract | |||||||||
Derivative [Line Items] | |||||||||
Number of banks transacted with for interest rate swap agreements (in banks) | Bank | 1 | ||||||||
Derivative amount of hedge | $ 100,000,000 | $ 100,000,000 | |||||||
Fixed interest rate | 1.075% | 1.17% | 1.92% | ||||||
Term of contract | 2 years | ||||||||
Derivatives designated as hedging instruments | Interest Rate Contract | Subsequent Event | |||||||||
Derivative [Line Items] | |||||||||
Derivative amount of hedge | € | € 150,000 | ||||||||
Leverage ratio, maximum | 0.03257 | ||||||||
Derivatives designated as hedging instruments | Interest Rate Contract | Derivative Expiration Period One | Subsequent Event | |||||||||
Derivative [Line Items] | |||||||||
Derivative amount of hedge | € | € 50,000 | ||||||||
Derivatives designated as hedging instruments | Interest Rate Contract | Derivative Expiration Period Two | Subsequent Event | |||||||||
Derivative [Line Items] | |||||||||
Derivative amount of hedge | € | € 100,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Maturity of bank acceptances | 1 year | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | $ 0 | $ 0 |
Liability derivatives | 0 | 0 |
Bank acceptances | 0 | 0 |
Rabbi trust assets | 2,177 | 2,104 |
Financial assets and financial liabilities, reported at fair value | 2,177 | 2,104 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 8,700 | 8,856 |
Liability derivatives | (2,514) | (1,023) |
Bank acceptances | 11,387 | 13,260 |
Rabbi trust assets | 0 | 0 |
Financial assets and financial liabilities, reported at fair value | 17,573 | 21,093 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 0 | 0 |
Liability derivatives | 0 | 0 |
Bank acceptances | 0 | 0 |
Rabbi trust assets | 0 | 0 |
Financial assets and financial liabilities, reported at fair value | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Asset derivatives | 8,700 | 8,856 |
Liability derivatives | (2,514) | (1,023) |
Bank acceptances | 11,387 | 13,260 |
Rabbi trust assets | 2,177 | 2,104 |
Financial assets and financial liabilities, reported at fair value | $ 19,750 | $ 23,197 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Feb. 28, 2023 | Jul. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pension and other postretirement benefits expenses | ||||||
Increase in stockholders equity | $ 11,324 | |||||
Pensions | ||||||
Pension and other postretirement benefits expenses | ||||||
Service cost | $ 577,000 | $ 1,328,000 | $ 1,350,000 | $ 2,883,000 | ||
Interest cost | 4,801,000 | 3,434,000 | 9,696,000 | 6,868,000 | ||
Expected return on plan assets | (7,449,000) | (7,257,000) | (14,983,000) | (14,538,000) | ||
Amortization of prior service cost | 83,000 | 99,000 | 170,000 | 207,000 | ||
Amortization of actuarial losses | 420,000 | 3,518,000 | 838,000 | 6,657,000 | ||
Curtailment gain | $ (668,000) | 0 | (668,000) | 0 | ||
Settlement gain | $ 476,000 | 731,000 | 0 | 731,000 | 0 | |
Special termination benefits | 0 | 0 | 0 | 136,000 | ||
Net periodic benefit (income) cost | (2,967,000) | 1,122,000 | (4,328,000) | 2,213,000 | ||
Other Postretirement Benefits | ||||||
Pension and other postretirement benefits expenses | ||||||
Service cost | 6,000 | 15,000 | 19,000 | 39,000 | ||
Interest cost | 274,000 | 203,000 | 560,000 | 409,000 | ||
Amortization of prior service cost | 2,000 | 9,000 | 5,000 | 18,000 | ||
Amortization of actuarial losses | (47,000) | (1,000) | (73,000) | (1,000) | ||
Net periodic benefit (income) cost | $ 235,000 | $ 226,000 | $ 511,000 | $ 465,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Holiday [Line Items] | |||||||
Effective tax rate | 21.80% | (267.20%) | 64.70% | ||||
Goodwill impairment charge | $ 0 | $ 68,194 | $ 0 | $ 68,194 | |||
Goodwill impairment charge | $ 0 | $ 68,194 | $ 0 | $ 68,194 | |||
Industrial | |||||||
Income Tax Holiday [Line Items] | |||||||
Goodwill impairment charge | $ (68,194) | ||||||
Goodwill impairment charge | $ (68,194) | ||||||
CHINA | |||||||
Income Tax Holiday [Line Items] | |||||||
Effective tax rate | 15% |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) by Component - Schedule of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance at beginning of period | $ (220,500) | $ (151,838) | ||
Other comprehensive (loss) income before reclassifications | 15,641 | (78,013) | ||
Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) | (1,385) | 5,461 | ||
Total other comprehensive (loss) income, net of tax | $ (14,953) | $ (69,962) | 14,256 | (72,552) |
Balance at end of period | (206,244) | (224,390) | (206,244) | (224,390) |
Gains and Losses on Cash Flow Hedges | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance at beginning of period | 5,941 | 160 | ||
Other comprehensive (loss) income before reclassifications | 987 | 3,206 | ||
Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) | (1,138) | 196 | ||
Total other comprehensive (loss) income, net of tax | (151) | 3,402 | ||
Balance at end of period | 5,790 | 3,562 | 5,790 | 3,562 |
Pension and Other Postretirement Benefit Items | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance at beginning of period | (108,640) | (112,307) | ||
Other comprehensive (loss) income before reclassifications | 10,518 | 586 | ||
Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) | (247) | 5,265 | ||
Total other comprehensive (loss) income, net of tax | 10,271 | 5,851 | ||
Balance at end of period | (98,369) | (106,456) | (98,369) | (106,456) |
Foreign Currency Items | ||||
Changes in Accumulated Other Comprehensive Income by Component [Roll Forward] | ||||
Balance at beginning of period | (117,801) | (39,691) | ||
Other comprehensive (loss) income before reclassifications | 4,136 | (81,805) | ||
Amounts reclassified from accumulated other comprehensive income to the Condensed Consolidated Statements of Income (Loss) | 0 | 0 | ||
Total other comprehensive (loss) income, net of tax | 4,136 | (81,805) | ||
Balance at end of period | $ (113,665) | $ (121,496) | $ (113,665) | $ (121,496) |
Changes in Accumulated Other _4
Changes in Accumulated Other Comprehensive Income (Loss) by Component - Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ (6,512) | $ (3,325) | $ (11,819) | $ (6,893) |
Net sales | 338,984 | 321,268 | 674,341 | 633,651 |
Tax benefit | (5,039) | (8,443) | (8,516) | (13,875) |
Net income (loss) | 17,352 | (39,552) | 30,511 | (19,068) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net income (loss) | 1,224 | (2,866) | 1,385 | (5,461) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 988 | (94) | 1,853 | (260) |
Net sales | (190) | (27) | (349) | 3 |
Income (loss) before income taxes | 798 | (121) | 1,504 | (257) |
Tax benefit | (194) | 28 | (366) | 61 |
Net income (loss) | 604 | (93) | 1,138 | (196) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Amortization of prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before income taxes | (85) | (108) | (175) | (225) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Amortization of actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before income taxes | (373) | (3,517) | (765) | (6,656) |
Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Pension and Other Postretirement Benefit Items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before income taxes | 514 | (3,625) | 32 | (6,881) |
Curtailment gain | 241 | 0 | 241 | 0 |
Settlement gain | 731 | 0 | 731 | 0 |
Tax benefit | 106 | 852 | 215 | 1,616 |
Net income (loss) | $ 620 | $ (2,773) | $ 247 | $ (5,265) |
Information on Business Segme_3
Information on Business Segments (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) Segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Net sales | $ 338,984 | $ 321,268 | $ 674,341 | $ 633,651 | |
Operating profit (loss) | 26,009 | (28,187) | 49,293 | 2,926 | |
Interest expense | 6,512 | 3,325 | 11,819 | 6,893 | |
Other expense (income), net | (2,894) | (403) | (1,553) | 1,226 | |
Income (loss) before income taxes | 22,391 | (31,109) | 39,027 | (5,193) | |
Goodwill impairment charge | 0 | 68,194 | 0 | 68,194 | |
Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 216,969 | 212,115 | 435,070 | 423,787 | |
Goodwill impairment charge | $ (68,194) | ||||
Aerospace | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 122,015 | 109,153 | 239,271 | 209,864 | |
Operating Segments | Industrial | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 216,971 | 212,115 | 435,079 | 423,787 | |
Operating profit (loss) | 9,429 | (48,743) | 13,962 | (33,990) | |
Goodwill impairment charge | 68,194 | 68,194 | |||
Operating Segments | Aerospace | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 122,015 | 109,153 | 239,272 | 209,864 | |
Operating profit (loss) | 16,580 | 20,556 | 35,331 | 36,916 | |
Intersegment sales | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (2) | $ 0 | $ (10) | $ 0 |
Information on Business Segme_4
Information on Business Segments Details 1 (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Segment Reporting Information [Line Items] | ||
Assets | $ 2,440,679 | $ 2,413,730 |
Operating Segments | Industrial | ||
Segment Reporting Information [Line Items] | ||
Assets | 1,698,451 | 1,680,415 |
Operating Segments | Aerospace | ||
Segment Reporting Information [Line Items] | ||
Assets | 606,262 | 590,598 |
Other | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 135,966 | $ 142,717 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - MB Aerospace Holdings, Inc. $ in Thousands | Jun. 05, 2023 USD ($) |
Business Acquisition [Line Items] | |
Purchase price | $ 740,000 |
Contingent consideration | $ 15,000 |
Business Reorganization - Narra
Business Reorganization - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Apr. 30, 2023 USD ($) | Jul. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 26, 2022 site | |
2022 Actions | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of manufacturing sites | site | 2 | |||||||
Charge for business reorganization | $ 17,986,000 | $ 1,974,000 | $ 5,964,000 | |||||
Employee termination costs | 11,880,000 | |||||||
Other restructuring costs | 6,106,000 | |||||||
Pension expense | 3,186,000 | |||||||
Accelerated depreciation | $ 1,417,000 | 796,000 | 2,389,000 | |||||
Transfer of work charges | 2,108,000 | 3,961,000 | ||||||
Restructuring And Related Cost, Special Employee Termination Benefits | 214 | 758,000 | ||||||
Restructuring And Related Cost, Pension Curtailment | 1,144 | 1,144,000 | ||||||
Liability for business reorganization | 6,302,000 | 6,302,000 | $ 10,900,000 | |||||
2022 Actions | Employee Severance and Other Termination Benefits | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charge for business reorganization | (184,000) | |||||||
Payments for Restructuring | 4,414,000 | |||||||
2022 Actions | Forecast | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Accelerated depreciation | $ 1,000,000 | |||||||
Transfer of work charges | 1,000,000 | |||||||
Restructuring and related cost, expected cost | $ 2,000,000 | |||||||
Payments for Restructuring | $ 1,000,000 | |||||||
2023 Actions | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charge for business reorganization | $ 9,519,000 | |||||||
Employee termination costs | 9,163,000 | |||||||
Other restructuring costs | 356,000 | |||||||
Liability for business reorganization | 9,024,000 | $ 9,024,000 | 9,024,000 | $ 0 | ||||
Restructuring and related cost, expected cost | 12,000,000 | |||||||
Restructuring Costs | 7,000,000 | |||||||
2023 Actions | Employee Severance and Other Termination Benefits | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charge for business reorganization | 9,163,000 | |||||||
Payments for Restructuring | $ 139,000 | |||||||
2023 Actions | Industrial | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charge for business reorganization | 9,294,000 | |||||||
Restructuring and related cost, expected cost | 4,000,000 | |||||||
Restructuring Costs | 3,000,000 | |||||||
2023 Actions | Aerospace | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Charge for business reorganization | 225,000 | |||||||
Employee termination costs | 4,000,000 | |||||||
Restructuring and related cost, expected cost | $ 8,000,000 |
Business Reorganization - Chang
Business Reorganization - Change in Liability for Business Reorganization (Details) - 2022 Actions - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Jul. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of period | $ 10,900 | ||
Restructuring charges | $ 17,986 | $ 1,974 | 5,964 |
Balance at end of period | $ 6,302 | 6,302 | |
Employee Severance and Other Termination Benefits | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring charges | (184) | ||
Payments for Restructuring | $ (4,414) |