SEC Info℠ | Home | Search | My Interests | Help | Sign In | Please Sign In | ||||||||||||||||||||
As Of Filer Filing For·On·As Docs:Size 3/06/20 Donaldson Co Inc 10-Q 1/31/20 84:7.5M |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 982K 2: EX-31.A Certification -- §302 - SOA'02 HTML 30K 3: EX-31.B Certification -- §302 - SOA'02 HTML 30K 4: EX-32 Certification -- §906 - SOA'02 HTML 26K 71: R1 Cover Page HTML 76K 44: R2 Condensed Consolidated Statements of Earnings HTML 68K 15: R3 Condensed Consolidated Statements of Comprehensive HTML 52K Income 64: R4 Condensed Consolidated Statements of Comprehensive HTML 31K Income (Parenthetical) 73: R5 Condensed Consolidated Balance Sheets HTML 128K 45: R6 Condensed Consolidated Balance Sheets HTML 42K (Parenthetical) 16: R7 Condensed Consolidated Statements of Cash Flows HTML 96K 63: R8 Condensed Consolidated Statements of Changes in HTML 57K Shareholders' Equity 76: R9 Condensed Consolidated Statements of Changes in HTML 25K Shareholders' Equity (Parenthetical) 53: R10 Summary of Significant Accounting Policies HTML 34K 83: R11 Acquisitions and Divestitures HTML 27K 33: R12 Supplemental Balance Sheet Information HTML 45K 25: R13 Earnings Per Share HTML 54K 54: R14 Goodwill and Intangible Assets HTML 59K 84: R15 Revenue HTML 50K 34: R16 Warranty HTML 36K 26: R17 Stock-Based Compensation HTML 74K 55: R18 Employee Benefit Plans HTML 53K 82: R19 Income Taxes HTML 27K 39: R20 Fair Value Measurements HTML 99K 10: R21 Shareholders' Equity HTML 27K 56: R22 Accumulated Other Comprehensive Loss HTML 144K 66: R23 Guarantees HTML 47K 40: R24 Commitments and Contingencies HTML 26K 11: R25 Segment Reporting HTML 98K 57: R26 Leases HTML 69K 67: R27 Borrowings HTML 25K 38: R28 Summary of Significant Accounting Policies HTML 35K (Policies) 12: R29 Supplemental Balance Sheet Information (Tables) HTML 50K 29: R30 Earnings Per Share (Tables) HTML 52K 36: R31 Goodwill and Intangible Assets (Tables) HTML 60K 81: R32 Revenue (Tables) HTML 44K 52: R33 Warranty (Tables) HTML 35K 28: R34 Stock-Based Compensation (Tables) HTML 74K 35: R35 Employee Benefit Plans (Tables) HTML 49K 80: R36 Fair Value Measurements (Tables) HTML 114K 51: R37 Accumulated Other Comprehensive Loss (Tables) HTML 144K 27: R38 Guarantees (Tables) HTML 50K 37: R39 Segment Reporting (Tables) HTML 97K 18: R40 Leases (Tables) HTML 73K 42: R41 Summary of Significant Accounting Policies HTML 31K (Details) 75: R42 Acquisitions and Divestitures (Details) HTML 36K 62: R43 Supplemental Balance Sheet Information (Inventory) HTML 32K (Details) 17: R44 Supplemental Balance Sheet Information (Property, HTML 43K Plant and Equipment) (Details) 41: R45 Earnings Per Share (Details) HTML 25K 74: R46 Earnings Per Share (Information Necessary to HTML 49K Calculate Basic and Diluted Net Earnings Per Common Share) (Details) 61: R47 Goodwill and Intangible Assets (Reconciliation of HTML 35K Goodwill) (Details) 14: R48 Goodwill and Intangible Assets (Reconciliation of HTML 41K Intangible Assets) (Details) 43: R49 Revenue (Disaggregation of Revenue by Geographical HTML 35K Area) (Details) 31: R50 Revenue (Narrative) (Details) HTML 30K 21: R51 Warranty (Details) HTML 33K 49: R52 Stock-Based Compensation (Details) HTML 61K 78: R53 Stock-Based Compensation (Compensation Expense) HTML 33K (Details) 32: R54 Stock-Based Compensation (Summary of Stock Option HTML 45K Activity) (Details) 22: R55 Stock-Based Compensation (Summary of Performance HTML 48K Award Activity) (Details) 50: R56 Employee Benefit Plans (Details) HTML 40K 79: R57 Employee Benefit Plans (Components of Net Periodic HTML 41K Pension Costs) (Details) 30: R58 Income Taxes (Details) HTML 28K 23: R59 Fair Value Measurements (Details) HTML 39K 58: R60 Fair Value Measurements (Derivatives on the HTML 43K Balance Sheet) (Details) 69: R61 Fair Value Measurements Fair Value Measurements HTML 38K (Pre-tax Impact of Derivatives) (Details) 46: R62 Shareholders' Equity (Details) HTML 34K 19: R63 Accumulated Other Comprehensive Loss (Details) HTML 70K 59: R64 Guarantees (Details) HTML 45K 70: R65 Segment Reporting (Details) HTML 24K 47: R66 Segment Reporting (Summary of Segment Detail) HTML 56K (Details) 20: R67 Leases (Lease Cost) (Details) HTML 29K 60: R68 Leases (Supplemental Information) (Details) HTML 34K 68: R69 Leases (Maturities) (Details) HTML 68K 77: R70 Borrowings (Details) HTML 29K 65: XML IDEA XML File -- Filing Summary XML 154K 24: XML XBRL Instance -- dci2020013110-q_htm XML 2.13M 48: EXCEL IDEA Workbook of Financial Reports XLSX 75K 6: EX-101.CAL XBRL Calculations -- dci-20200131_cal XML 208K 7: EX-101.DEF XBRL Definitions -- dci-20200131_def XML 372K 8: EX-101.LAB XBRL Labels -- dci-20200131_lab XML 1.29M 9: EX-101.PRE XBRL Presentations -- dci-20200131_pre XML 744K 5: EX-101.SCH XBRL Schema -- dci-20200131 XSD 126K 13: JSON XBRL Instance as JSON Data -- MetaLinks 317± 457K 72: ZIP XBRL Zipped Folder -- 0000029644-20-000007-xbrl Zip 213K
Document |
i Delaware | i 41-0222640 | |
(State
or other jurisdiction of | (I.R.S. Employer | |
incorporation or organization) | Identification No.) |
Title of each class | Trading Symbol(s) | Name
of each exchange on which registered |
i Common Stock, $5.00 par value | i DCI | i New
York Stock Exchange |
i Large
accelerated filer | ☒ | Accelerated filer | ☐ | |
Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | |
Emerging
growth company | i ☐ |
Item
1. | Financial Statements |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net
sales | $ | i 662.0 | $ | i 703.7 | $ | i 1,334.7 | $ | i 1,405.1 | |||||||
Cost
of sales | i 438.8 | i 478.3 | i 880.3 | i 941.3 | |||||||||||
Gross
profit | i 223.2 | i 225.4 | i 454.4 | i 463.8 | |||||||||||
Operating
expenses | i 138.7 | i 140.3 | i 281.4 | i 280.0 | |||||||||||
Operating
income | i 84.5 | i 85.1 | i 173.0 | i 183.8 | |||||||||||
Interest
expense | i 4.5 | i 5.3 | i 9.0 | i 9.5 | |||||||||||
Other
income, net | ( i 2.8 | ) | ( i 0.7 | ) | ( i 5.5 | ) | ( i 2.6 | ) | |||||||
Earnings
before income taxes | i 82.8 | i 80.5 | i 169.5 | i 176.9 | |||||||||||
Income
taxes | i 18.4 | i 20.4 | i 40.0 | i 43.0 | |||||||||||
Net
earnings | $ | i 64.4 | $ | i 60.1 | $ | i 129.5 | $ | i 133.9 | |||||||
Weighted
average shares – basic | i 127.1 | i 128.3 | i 127.0 | i 128.6 | |||||||||||
Weighted
average shares – diluted | i 128.9 | i 130.0 | i 128.8 | i 130.6 | |||||||||||
Net
earnings per share – basic | $ | i 0.51 | $ | i 0.47 | $ | i 1.02 | $ | i 1.04 | |||||||
Net
earnings per share – diluted | $ | i 0.50 | $ | i 0.46 | $ | i 1.01 | $ | i 1.03 |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net
earnings | $ | i 64.4 | $ | i 60.1 | $ | i 129.5 | $ | i 133.9 | |||||||
Other
comprehensive income (loss): | |||||||||||||||
Foreign currency translation income (loss) | i 2.4 | i 23.7 | i 10.5 | ( i 0.5 | ) | ||||||||||
Pension
liability adjustment, net of deferred taxes of $(0.4), $(0.2), $(0.3), and $(0.6), respectively | i 1.2 | i 0.5 | i 2.0 | i 2.1 | |||||||||||
Derivatives: | |||||||||||||||
Gain
on hedging derivatives, net of deferred taxes of $0.5, $0.0, $0.7 and $(0.2), respectively | i 0.5 | i — | i 0.8 | i 0.5 | |||||||||||
Reclassifications
of losses on hedging derivatives to net earnings, net of taxes of $0.0, $0.0, $(0.7), and $0.0, respectively | i 0.1 | i — | i 1.3 | i — | |||||||||||
Total
derivatives | i 0.6 | i — | i 2.1 | i 0.5 | |||||||||||
Net
other comprehensive income | i 4.2 | i 24.2 | i 14.6 | i 2.1 | |||||||||||
Comprehensive
income | $ | i 68.6 | $ | i 84.3 | $ | i 144.1 | $ | i 136.0 |
Assets | |||||||
Current assets: | |||||||
Cash
and cash equivalents | $ | i 211.1 | $ | i 177.8 | |||
Accounts
receivable, less allowance of $5.0 and $4.8, respectively | i 475.8 | i 529.5 | |||||
Inventories,
net | i 350.1 | i 332.8 | |||||
Prepaid
expenses and other current assets | i 84.2 | i 82.5 | |||||
Total
current assets | i 1,121.2 | i 1,122.6 | |||||
Property,
plant and equipment, net | i 623.1 | i 588.9 | |||||
Right-of-use
lease assets | i 76.0 | i — | |||||
Goodwill | i 308.5 | i 303.1 | |||||
Intangible
assets, net | i 69.7 | i 70.9 | |||||
Deferred
income taxes | i 15.4 | i 14.2 | |||||
Other
long-term assets | i 48.3 | i 42.9 | |||||
Total
assets | $ | i 2,262.2 | $ | i 2,142.6 | |||
Liabilities
and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Short-term borrowings | $ | i 34.7 | $ | i 2.1 | |||
Current
maturities of long-term debt | i 50.0 | i 50.2 | |||||
Trade
accounts payable | i 210.1 | i 237.5 | |||||
Current
lease liabilities | i 25.9 | i — | |||||
Other
current liabilities | i 177.5 | i 193.1 | |||||
Total
current liabilities | i 498.2 | i 482.9 | |||||
Long-term
debt | i 595.8 | i 584.4 | |||||
Non-current
income taxes payable | i 102.1 | i 110.9 | |||||
Deferred
income taxes | i 19.5 | i 13.2 | |||||
Long-term
lease liabilities | i 50.1 | i — | |||||
Other
long-term liabilities | i 45.3 | i 48.5 | |||||
Total
liabilities | i 1,311.0 | i 1,239.9 | |||||
Commitments
and contingencies (Note 15) | i | i | |||||
Redeemable
non-controlling interest | i 10.8 | i 10.0 | |||||
Shareholders’
equity: | |||||||
Preferred stock, $1.00 par value, 1,000,000 shares authorized, none issued | i — | i — | |||||
Common
stock, $5.00 par value, 240,000,000 shares authorized, 151,643,194 shares issued | i 758.2 | i 758.2 | |||||
Retained
earnings | i 1,354.1 | i 1,281.5 | |||||
Non-controlling
interest | i 5.6 | i 5.4 | |||||
Stock-compensation
plans | i 14.5 | i 21.7 | |||||
Accumulated
other comprehensive loss | ( i 178.3 | ) | ( i 192.9 | ) | |||
Treasury
stock, 24,876,430 and 24,324,483 shares, respectively, at cost | ( i 1,013.7 | ) | ( i 981.2 | ) | |||
Total
shareholders’ equity | i 940.4 | i 892.7 | |||||
Total
liabilities and shareholders’ equity | $ | i 2,262.2 | $ | i 2,142.6 |
Six
Months Ended January 31, | |||||||
2020 | 2019 | ||||||
Operating Activities | |||||||
Net
earnings | $ | i 129.5 | $ | i 133.9 | |||
Adjustments
to reconcile net earnings to net cash provided by operating activities: | |||||||
Depreciation and amortization | i 42.8 | i 39.2 | |||||
Deferred
income taxes | i 2.5 | i 4.9 | |||||
Stock-based
compensation expense | i 10.2 | i 10.6 | |||||
Other,
net | i 10.5 | ( i 2.1 | ) | ||||
Changes
in operating assets and liabilities, excluding effect of acquired business | ( i 18.7 | ) | ( i 43.7 | ) | |||
Net
cash provided by operating activities | i 176.8 | i 142.8 | |||||
Investing
Activities | |||||||
Net expenditures on property, plant and equipment | ( i 79.7 | ) | ( i 67.1 | ) | |||
Acquisitions,
net of cash acquired | i — | ( i 96.0 | ) | ||||
Net
cash used in investing activities | ( i 79.7 | ) | ( i 163.1 | ) | |||
Financing
Activities | |||||||
Proceeds from long-term debt | i 122.7 | i 145.0 | |||||
Repayments
of long-term debt | ( i 111.1 | ) | ( i 24.6 | ) | |||
Change
in short-term borrowings | i 32.2 | i 22.6 | |||||
Purchase
of treasury stock | ( i 65.0 | ) | ( i 102.0 | ) | |||
Dividends
paid | ( i 53.2 | ) | ( i 48.7 | ) | |||
Tax
withholding payments for stock compensation transactions | ( i 6.0 | ) | ( i 3.6 | ) | |||
Exercise
of stock options | i 17.4 | i 17.3 | |||||
Net
cash (used in) provided by financing activities | ( i 63.0 | ) | i 6.0 | ||||
Effect
of exchange rate changes on cash | ( i 0.8 | ) | i 0.8 | ||||
Increase
(decrease) in cash and cash equivalents | i 33.3 | ( i 13.5 | ) | ||||
Cash
and cash equivalents, beginning of period | i 177.8 | i 204.7 | |||||
Cash
and cash equivalents, end of period | $ | i 211.1 | $ | i 191.2 | |||
Supplemental
Cash Flow Information | |||||||
Cash paid during the year for: | |||||||
Income taxes | $ | i 45.3 | $ | i 54.4 | |||
Interest | $ | i 9.4 | $ | i 8.9 | |||
Supplemental
Disclosure of Non-Cash Investing Transactions | |||||||
Accrued property, plant and equipment additions | $ | i 12.5 | $ | i 17.5 |
Three
Months Ended January 31, 2020 and 2019 | |||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Non- Controlling Interest | Stock
Compensation Plans | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||
Balance October 31, 2019 | $ | i 758.2 | $ | i — | $ | i 1,346.0 | $ | i 5.4 | $ | i 15.1 | $ | ( i 182.5 | ) | $ | ( i 1,025.2 | ) | $ | i 917.0 | |||||||||||||
Net
earnings | i 64.4 | i 64.4 | |||||||||||||||||||||||||||||
Other
comprehensive income | i 4.2 | i 4.2 | |||||||||||||||||||||||||||||
Dividends
declared ($0.42 per share) | ( i 53.3 | ) | ( i 53.3 | ) | |||||||||||||||||||||||||||
Stock
compensation and other activity | ( i 3.0 | ) | i 0.2 | ( i 0.6 | ) | i 11.5 | i 8.1 | ||||||||||||||||||||||||
Balance
January 31, 2020 | $ | i 758.2 | $ | i — | $ | i 1,354.1 | $ | i 5.6 | $ | i 14.5 | $ | ( i 178.3 | ) | $ | ( i 1,013.7 | ) | $ | i 940.4 | |||||||||||||
Balance
October 31, 2018 | $ | i 758.2 | $ | i — | $ | i 1,192.6 | $ | i 4.8 | $ | i 21.2 | $ | ( i 171.9 | ) | $ | ( i 950.5 | ) | $ | i 854.4 | |||||||||||||
Net
earnings | i 60.1 | i 60.1 | |||||||||||||||||||||||||||||
Other
comprehensive income | i 24.2 | i 24.2 | |||||||||||||||||||||||||||||
Treasury
stock acquired | ( i 21.1 | ) | ( i 21.1 | ) | |||||||||||||||||||||||||||
Dividends
declared ($0.38 per share) | ( i 48.6 | ) | ( i 48.6 | ) | |||||||||||||||||||||||||||
Stock
compensation and other activity | i | ( i 1.4 | ) | i 0.4 | ( i 0.1 | ) | i 4.7 | i 3.6 | |||||||||||||||||||||||
Balance
January 31, 2019 | $ | i 758.2 | $ | i — | $ | i 1,202.7 | $ | i 5.2 | $ | i 21.1 | $ | ( i 147.7 | ) | $ | ( i 966.9 | ) | $ | i 872.6 |
Six
Months Ended January 31, 2020 and 2019 | |||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Non- Controlling Interest | Stock
Compensation Plans | Accumulated Other Comprehensive Loss | Treasury Stock | Total | ||||||||||||||||||||||||
Balance July 31, 2019 | $ | i 758.2 | $ | i — | $ | i 1,281.5 | $ | i 5.4 | $ | i 21.7 | $ | ( i 192.9 | ) | $ | ( i 981.2 | ) | $ | i 892.7 | |||||||||||||
Net
earnings | i 129.5 | i 129.5 | |||||||||||||||||||||||||||||
Other
comprehensive income | i 14.6 | i 14.6 | |||||||||||||||||||||||||||||
Treasury
stock acquired | ( i 65.0 | ) | ( i 65.0 | ) | |||||||||||||||||||||||||||
Dividends
declared ($0.42 per share) | ( i 53.1 | ) | ( i 53.1 | ) | |||||||||||||||||||||||||||
Stock
compensation and other activity | ( i 3.8 | ) | i 0.2 | ( i 7.2 | ) | i 32.5 | i 21.7 | ||||||||||||||||||||||||
Balance
January 31, 2020 | $ | i 758.2 | $ | i — | $ | i 1,354.1 | $ | i 5.6 | $ | i 14.5 | $ | ( i 178.3 | ) | $ | ( i 1,013.7 | ) | $ | i 940.4 | |||||||||||||
Balance
July 31, 2018 | $ | i 758.2 | $ | i — | $ | i 1,122.1 | $ | i 4.8 | $ | i 21.3 | $ | ( i 149.8 | ) | $ | ( i 898.8 | ) | $ | i 857.8 | |||||||||||||
Net
earnings | i 133.9 | i 133.9 | |||||||||||||||||||||||||||||
Other
comprehensive income | i 2.1 | i 2.1 | |||||||||||||||||||||||||||||
Treasury
stock acquired | ( i 102.0 | ) | ( i 102.0 | ) | |||||||||||||||||||||||||||
Dividends
declared ($0.38 per share) | ( i 48.4 | ) | ( i 48.4 | ) | |||||||||||||||||||||||||||
Stock
compensation and other activity | i | ( i 4.9 | ) | i 0.4 | ( i 0.2 | ) | i 33.9 | i 29.2 | |||||||||||||||||||||||
Balance
January 31, 2019 | $ | i 758.2 | $ | i — | $ | i 1,202.7 | $ | i 5.2 | $ | i 21.1 | $ | ( i 147.7 | ) | $ | ( i 966.9 | ) | $ | i 872.6 |
Raw materials | $ | i 117.1 | $ | i 114.7 | |||
Work
in process | i 35.0 | i 33.0 | |||||
Finished
products | i 198.0 | i 185.1 | |||||
Inventories,
net | $ | i 350.1 | $ | i 332.8 |
Land | $ | i 24.2 | $ | i 24.2 | |||
Buildings | i 347.6 | i 325.3 | |||||
Machinery
and equipment | i 836.2 | i 813.5 | |||||
Computer
software | i 144.0 | i 142.8 | |||||
Construction
in progress | i 135.8 | i 114.3 | |||||
Less:
accumulated depreciation | ( i 864.7 | ) | ( i 831.2 | ) | |||
Property,
plant and equipment, net | $ | i 623.1 | $ | i 588.9 |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net
earnings for basic and diluted earnings per share computation | $ | i 64.4 | $ | i 60.1 | $ | i 129.5 | $ | i 133.9 | |||||||
Weighted
average common shares outstanding: | |||||||||||||||
Weighted average common shares – basic | i 127.1 | i 128.3 | i 127.0 | i 128.6 | |||||||||||
Dilutive
impact of share-based awards | i 1.8 | i 1.7 | i 1.8 | i 2.0 | |||||||||||
Weighted
average common shares – diluted | i 128.9 | i 130.0 | i 128.8 | i 130.6 | |||||||||||
Net
earnings per share – basic | $ | i 0.51 | $ | i 0.47 | $ | i 1.02 | $ | i 1.04 | |||||||
Net
earnings per share – diluted | $ | i 0.50 | $ | i 0.46 | $ | i 1.01 | $ | i 1.03 |
Engine Products | Industrial Products | Total | |||||||||
Balance
as of July 31, 2019 | $ | i 84.5 | $ | i 218.6 | $ | i 303.1 | |||||
Goodwill
acquired | i — | i — | i — | ||||||||
Currency
translation | ( i 0.1 | ) | i 5.5 | i 5.4 | |||||||
Balance
as of January 31, 2020 | $ | i 84.4 | $ | i 224.1 | $ | i 308.5 |
Gross Carrying Amount | Accumulated Amortization | Total | |||||||||
Customer
relationships | $ | i 104.0 | $ | ( i 46.6 | ) | $ | i 57.4 | ||||
Patents,
trademarks and technology | i 22.9 | ( i 10.6 | ) | i 12.3 | |||||||
Total
intangible assets, net | $ | i 126.9 | $ | ( i 57.2 | ) | $ | i 69.7 |
Gross Carrying Amount | Accumulated Amortization | Total
| |||||||||
Customer relationships | $ | i 101.5 | $ | ( i 43.3 | ) | $ | i 58.2 | ||||
Patents,
trademarks and technology | i 22.3 | ( i 9.6 | ) | i 12.7 | |||||||
Total
intangible assets, net | $ | i 123.8 | $ | ( i 52.9 | ) | $ | i 70.9 |
Three Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
United
States | $ | i 267.5 | $ | i 289.4 | $ | i 554.4 | $ | i 594.5 | |||||||
Europe,
Middle East and Africa | i 194.1 | i 207.4 | i 388.8 | i 403.7 | |||||||||||
Asia
Pacific | i 144.4 | i 149.3 | i 278.0 | i 296.6 | |||||||||||
Latin
America | i 56.0 | i 57.6 | i 113.5 | i 110.3 | |||||||||||
Total
net sales | $ | i 662.0 | $ | i 703.7 | $ | i 1,334.7 | $ | i 1,405.1 |
Six
Months Ended January 31, | |||||||
2020 | 2019 | ||||||
Balance at beginning of period | $ | i 11.2 | $ | i 18.9 | |||
Accruals
for warranties issued during the reporting period | i 0.6 | i 0.5 | |||||
Accruals
related to pre-existing warranties (including changes in estimates) | ( i 0.5 | ) | ( i 1.7 | ) | |||
Less:
settlements made during the period | ( i 1.4 | ) | ( i 3.1 | ) | |||
Balance
at end of period | $ | i 9.9 | $ | i 14.6 |
Three
Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Pretax
compensation expense associated with stock options | $ | i 2.4 | $ | i 2.0 | $ | i 7.7 | $ | i 6.9 | ||||||||
Tax
benefits associated with stock options | $ | i 0.5 | $ | i 0.3 | $ | i 1.1 | $ | i 1.4 |
Options Outstanding | Weighted Average Exercise Price | |||||
Outstanding as of July 31, 2019 | i 6,531,250 | $ | i 39.66 | |||
Granted | i 929,941 | i 51.96 | ||||
Exercised | ( i 610,997 | ) | i 29.06 | |||
Canceled | ( i 45,894 | ) | i 53.27 | |||
Outstanding
as of January 31, 2020 | i 6,804,300 | $ | i 42.20 |
Three
Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Pretax
compensation expense associated with performance-based awards | $ | i 0.9 | $ | i 1.3 | $ | i 1.8 | $ | i 3.0 |
Performance Shares Outstanding | Weighted Average Grant Date Fair Value | ||||||
Non-vested
at July 31, 2019 | i 174,100 | $ | i 52.87 | ||||
Granted | i 100,500 | i 51.61 | |||||
Vested | i — | i — | |||||
Canceled/forfeited | i — | i — | |||||
Non-vested
at January 31, 2020 | i 274,600 | $ | i 52.41 |
Three Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net
periodic benefit costs: | |||||||||||||||
Service cost | $ | i 1.5 | $ | i 1.5 | $ | i 3.1 | $ | i 3.0 | |||||||
Interest
cost | i 3.4 | i 4.1 | i 6.8 | i 8.2 | |||||||||||
Expected
return on assets | ( i 6.5 | ) | ( i 6.7 | ) | ( i 13.0 | ) | ( i 13.3 | ) | |||||||
Prior
service cost amortization | i 0.2 | i 0.2 | i 0.3 | i 0.3 | |||||||||||
Actuarial
loss amortization | i 1.6 | i 1.1 | i 3.2 | i 2.2 | |||||||||||
Net
periodic benefit costs | $ | i 0.2 | $ | i 0.2 | $ | i 0.4 | $ | i 0.4 |
Level 1 | Inputs to the fair value measurement are quoted prices in active markets for identical assets or liabilities. |
Level
2 | Inputs to the fair value measurement include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. |
Level 3 | Inputs to the fair value measurement are unobservable inputs or valuation techniques. |
Fair
Values Significant Other Observable Inputs | ||||||||||||||||||||||||
Notional Amounts | Assets (1) | Liabilities (2) (3) | ||||||||||||||||||||||
January 31, | July
31, | January 31, | July 31, | January 31, | ||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Forward
foreign currency exchange contracts | $ | i 14.0 | $ | i 28.2 | $ | i 2.7 | $ | i 1.6 | $ | i 0.7 | $ | i 1.8 | ||||||||||||
Net
investment hedges | i 55.8 | i 55.8 | i 1.1 | i 1.1 | i — | i 1.9 | ||||||||||||||||||
Total
| $ | i 69.8 | $ | i 84.0 | $ | i 3.8 | $ | i 2.7 | $ | i 0.7 | $ | i 3.7 |
(1) | Amounts
are recorded within prepaid expenses and other current assets in the Company’s Condensed Consolidated Balance Sheets. |
(2) | Forward foreign currency exchange contracts are recorded within other current liabilities in the Company’s Condensed Consolidated Balance Sheets. |
Pre-tax
Gains (Losses) Recognized in Accumulated Other Comprehensive Loss | ||||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Forward
foreign currency exchange contracts | $ | ( i 0.6 | ) | $ | i 0.1 | $ | ( i 1.3 | ) | $ | i 1.1 | ||||||
Net
investment hedges | $ | i 0.6 | $ | i — | $ | i 1.4 | $ | i — |
Pre-tax
(Gains) Losses Reclassified from Accumulated Other Comprehensive Loss | ||||||||||||||||
Three Months Ended January 31, | Six Months Ended January 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Forward
foreign currency exchange contracts | $ | i 0.1 | $ | ( i 0.1 | ) | $ | i 2.0 | $ | ( i 0.4 | ) | ||||||
Net
investment hedges | $ | i — | $ | i — | $ | i — | $ | i — |
Foreign Currency Translation Adjustment | Pension Benefits | Derivative Financial Instruments | Total | ||||||||||||
Balance as of October 31, 2019, net of tax | $ | ( i 84.6 | ) | $ | ( i 98.2 | ) | $ | i 0.3 | $ | ( i 182.5 | ) | ||||
Other
comprehensive income before reclassifications and tax | i 2.4 | i — | i — | i 2.4 | |||||||||||
Tax
benefit | i — | i — | i 0.5 | i 0.5 | |||||||||||
Other
comprehensive income before reclassifications, net of tax | i 2.4 | i — | i 0.5 | i 2.9 | |||||||||||
Reclassifications,
before tax | i — | i 1.6 | i 0.1 | i 1.7 | |||||||||||
Tax
expense | i — | ( i 0.4 | ) | i — | ( i 0.4 | ) | |||||||||
Reclassifications,
net of tax | i — | i 1.2 | (1) | i 0.1 | (2) | i 1.3 | |||||||||
Other
comprehensive income, net of tax | i 2.4 | i 1.2 | i 0.6 | i 4.2 | |||||||||||
Balance
as of January 31, 2020, net of tax | $ | ( i 82.2 | ) | $ | ( i 97.0 | ) | $ | i 0.9 | $ | ( i 178.3 | ) | ||||
Balance
as of October 31, 2018, net of tax | $ | ( i 90.3 | ) | $ | ( i 81.3 | ) | $ | ( i 0.3 | ) | $ | ( i 171.9 | ) | |||
Other
comprehensive income before reclassifications and tax | i 23.7 | i — | i 0.1 | i 23.8 | |||||||||||
Other
comprehensive income before reclassifications, net of tax | i 23.7 | i — | i 0.1 | i 23.8 | |||||||||||
Reclassifications,
before tax | i — | i 0.7 | ( i 0.1 | ) | i 0.6 | ||||||||||
Tax
expense | i — | ( i 0.2 | ) | i — | ( i 0.2 | ) | |||||||||
Reclassifications,
net of tax | i — | i 0.5 | (1) | ( i 0.1 | ) | (2) | i 0.4 | ||||||||
Other
comprehensive income, net of tax | i 23.7 | i 0.5 | i — | i 24.2 | |||||||||||
Balance
as of January 31, 2019, net of tax | $ | ( i 66.6 | ) | $ | ( i 80.8 | ) | $ | ( i 0.3 | ) | $ | ( i 147.7 | ) |
(1) | Primarily
includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 9) that were reclassified from accumulated other comprehensive loss in the Company’s Condensed Consolidated Balance Sheet to operating expenses or cost of sales in the Company’s Condensed Consolidated Statements of Earnings. |
(2) | Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net in the Company’s Condensed
Consolidated Statements of Earnings. |
Foreign Currency Translation Adjustment | Pension Benefits | Derivative Financial Instruments | Total | ||||||||||||
Balance as of July 31, 2019, net of tax | $ | ( i 92.7 | ) | $ | ( i 99.0 | ) | $ | ( i 1.2 | ) | $ | ( i 192.9 | ) | |||
Other
comprehensive income before reclassifications and tax | i 10.5 | i — | i 0.1 | i 10.6 | |||||||||||
Tax
benefit | i — | i — | i 0.7 | i 0.7 | |||||||||||
Other
comprehensive income before reclassifications, net of tax | i 10.5 | i — | i 0.8 | i 11.3 | |||||||||||
Reclassifications,
before tax | i — | i 2.3 | i 2.0 | i 4.3 | |||||||||||
Tax
expense | i — | ( i 0.3 | ) | ( i 0.7 | ) | ( i 1.0 | ) | ||||||||
Reclassifications,
net of tax | i — | i 2.0 | (1) | i 1.3 | (2) | i 3.3 | |||||||||
Other
comprehensive income, net of tax | i 10.5 | i 2.0 | i 2.1 | i 14.6 | |||||||||||
Balance
as of January 31, 2020, net of tax | $ | ( i 82.2 | ) | $ | ( i 97.0 | ) | $ | i 0.9 | $ | ( i 178.3 | ) | ||||
Balance
as of July 31, 2018, net of tax | $ | ( i 66.1 | ) | $ | ( i 82.9 | ) | $ | ( i 0.8 | ) | $ | ( i 149.8 | ) | |||
Other
comprehensive (loss) income before reclassifications and tax | ( i 0.5 | ) | i — | i 1.1 | i 0.6 | ||||||||||
Tax
expense | i — | i — | ( i 0.3 | ) | ( i 0.3 | ) | |||||||||
Other
comprehensive (loss) income before reclassifications, net of tax | ( i 0.5 | ) | i — | i 0.8 | i 0.3 | ||||||||||
Reclassifications,
before tax | i — | i 2.7 | ( i 0.4 | ) | i 2.3 | ||||||||||
Tax
(expense) benefit | i — | ( i 0.6 | ) | i 0.1 | ( i 0.5 | ) | |||||||||
Reclassifications,
net of tax | i — | i 2.1 | (1) | ( i 0.3 | ) | (2) | i 1.8 | ||||||||
Other
comprehensive (loss) income, net of tax | ( i 0.5 | ) | i 2.1 | i 0.5 | i 2.1 | ||||||||||
Balance
as of January 31, 2019, net of tax | $ | ( i 66.6 | ) | $ | ( i 80.8 | ) | $ | ( i 0.3 | ) | $ | ( i 147.7 | ) |
(1) | Primarily
includes net amortization of prior service costs and actuarial losses included in net periodic benefit cost (see Note 9) that were reclassified from accumulated other comprehensive loss in the Company’s Condensed Consolidated Balance Sheet to operating expenses or cost of sales in the Company’s Condensed Consolidated Statements of Earnings. |
(2) | Relates to foreign currency cash flow hedges that were reclassified from accumulated other comprehensive loss to other income, net in the Company’s Condensed
Consolidated Statements of Earnings. |
Outstanding debt (the Company guarantees half) | $ | i 39.5 | $ | i 38.8 | ||||
Contingent
liability for standby letters of credit (1) | $ | i 7.5 | $ | i 11.0 | ||||
Amounts
drawn for letters of credit | $ | i — | $ | i — |
Three Months Ended January 31, | Six Months Ended January 31, 2019 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Investment
earnings (loss) from AFSI (1) | $ | i 0.3 | $ | ( i 0.1 | ) | $ | i 0.4 | $ | ( i 0.3 | ) | ||||||
Royalty
income from AFSI (1) | $ | i 1.7 | $ | i 1.6 | $ | i 3.6 | $ | i 3.3 |
Three Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net
sales | |||||||||||||||
Engine Products segment | $ | i 435.6 | $ | i 469.0 | $ | i 894.7 | $ | i 949.9 | |||||||
Industrial
Products segment | i 226.4 | i 234.7 | i 440.0 | i 455.2 | |||||||||||
Total | $ | i 662.0 | $ | i 703.7 | $ | i 1,334.7 | $ | i 1,405.1 | |||||||
Earnings
before income taxes | |||||||||||||||
Engine Products segment | $ | i 53.3 | $ | i 53.2 | $ | i 115.7 | $ | i 117.1 | |||||||
Industrial
Products segment | i 34.6 | i 32.2 | i 64.1 | i 68.8 | |||||||||||
Corporate
and Unallocated | ( i 5.1 | ) | ( i 4.9 | ) | ( i 10.3 | ) | ( i 9.0 | ) | |||||||
Total | $ | i 82.8 | $ | i 80.5 | $ | i 169.5 | $ | i 176.9 |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Engine
Products segment | |||||||||||||||
Off-Road | $ | i 67.5 | $ | i 79.0 | $ | i 136.1 | $ | i 155.2 | |||||||
On-Road | i 33.8 | i 42.8 | i 74.5 | i 88.7 | |||||||||||
Aftermarket | i 308.1 | i 321.1 | i 627.5 | i 652.3 | |||||||||||
Aerospace
and Defense | i 26.2 | i 26.1 | i 56.6 | i 53.7 | |||||||||||
Engine
Products segment net sales | i 435.6 | i 469.0 | i 894.7 | i 949.9 | |||||||||||
Industrial
Products segment | |||||||||||||||
Industrial Filtration Solutions | i 155.0 | i 164.6 | i 304.1 | i 314.0 | |||||||||||
Gas
Turbine Systems | i 24.3 | i 27.5 | i 45.0 | i 53.0 | |||||||||||
Special
Applications | i 47.1 | i 42.6 | i 90.9 | i 88.2 | |||||||||||
Industrial
Products segment net sales | i 226.4 | i 234.7 | i 440.0 | i 455.2 | |||||||||||
Total
net sales | $ | i 662.0 | $ | i 703.7 | $ | i 1,334.7 | $ | i 1,405.1 |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||
2020 | 2020 | 2020 | |||||||
Operating lease cost | $ | i 7.7 | $ | i 15.2 | |||||
Short-term
lease cost | i 0.5 | i 1.1 | |||||||
Total
lease costs | $ | i 8.2 | $ | i 16.3 |
Right-of-use lease assets | $ | i 76.0 | $ | i 71.5 | ||||
Current
lease liabilities | $ | i 25.9 | $ | i 26.0 | ||||
Long-term
lease liabilities | $ | i 50.1 | $ | i 45.5 |
Weighted
average remaining lease term (years) | i 4.0 | i 3.7 | ||||
Weighted
average discount rates | i 3.81 | % | i 3.76 | % |
Amounts Due in Fiscal Year Ending | ||||
Remainder of 2020 | $ | i 14.5 | ||
2021 | i 22.6 | |||
2022 | i 14.6 | |||
2023 | i 8.6 | |||
2024 | i 5.7 | |||
Thereafter | i 17.6 | |||
Total
future lease payments | i 83.6 | |||
Less imputed interest | i 7.6 | |||
Present
value of future lease payments | $ | i 76.0 |
Amounts Due in Fiscal Year Ending | ||||
2020 | $ | i 24.0 | ||
2021 | i 17.5 | |||
2022 | i 11.3 | |||
2023 | i 6.4 | |||
2024 | i 4.6 | |||
Thereafter | i 19.0 | |||
Total
future lease payments | $ | i 82.8 |
Three Months Ended January 31, | |||||||||||||
2020 | %
of sales | 2019 | % of sales | ||||||||||
Net sales | $ | 662.0 | $ | 703.7 | |||||||||
Cost
of sales | 438.8 | 66.3 | % | 478.3 | 68.0 | % | |||||||
Gross profit | 223.2 | 33.7 | % | 225.4 | 32.0 | % | |||||||
Operating
expenses | 138.7 | 21.0 | % | 140.3 | 19.9 | % | |||||||
Operating income | 84.5 | 12.8 | % | 85.1 | 12.1 | % | |||||||
Interest
expense | 4.5 | 0.7 | % | 5.3 | 0.8 | % | |||||||
Other income, net | (2.8 | ) | (0.4 | )% | (0.7 | ) | (0.1 | )% | |||||
Earnings
before income taxes | 82.8 | 12.5 | % | 80.5 | 11.4 | % | |||||||
Income taxes | 18.4 | 2.8 | % | 20.4 | 2.9 | % | |||||||
Net
earnings | $ | 64.4 | 9.7 | % | $ | 60.1 | 8.5 | % |
Six
Months Ended January 31, | |||||||||||||
2020 | % of sales | 2019 | % of sales | ||||||||||
Net
sales | $ | 1,334.7 | $ | 1,405.1 | |||||||||
Cost of sales | 880.3 | 66.0 | % | 941.3 | 67.0 | % | |||||||
Gross
profit | 454.4 | 34.0 | % | 463.8 | 33.0 | % | |||||||
Operating expenses | 281.4 | 21.1 | % | 280.0 | 19.9 | % | |||||||
Operating
income | 173.0 | 13.0 | % | 183.8 | 13.1 | % | |||||||
Interest expense | 9.0 | 0.7 | % | 9.5 | 0.7 | % | |||||||
Other
income, net | (5.5 | ) | (0.4 | )% | (2.6 | ) | (0.2 | )% | |||||
Earnings before income taxes | 169.5 | 12.7 | % | 176.9 | 12.6 | % | |||||||
Income
taxes | 40.0 | 3.0 | % | 43.0 | 3.1 | % | |||||||
Net earnings | $ | 129.5 | 9.7 | % | $ | 133.9 | 9.5 | % |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Net
sales: | |||||||||||||||
Engine Products segment | $ | 435.6 | $ | 469.0 | $ | 894.7 | $ | 949.9 | |||||||
Industrial
Products segment | 226.4 | 234.7 | 440.0 | 455.2 | |||||||||||
Total | $ | 662.0 | $ | 703.7 | $ | 1,334.7 | $ | 1,405.1 | |||||||
Earnings
before income taxes: | |||||||||||||||
Engine Products segment | $ | 53.3 | $ | 53.2 | $ | 115.7 | $ | 117.1 | |||||||
Industrial
Products segment | 34.6 | 32.2 | 64.1 | 68.8 | |||||||||||
Corporate and Unallocated (1) | (5.1 | ) | (4.9 | ) | (10.3 | ) | (9.0 | ) | |||||||
Total | $ | 82.8 | $ | 80.5 | $ | 169.5 | $ | 176.9 |
(1) | Corporate
and Unallocated includes corporate expenses determined to be non-allocable to the segments, such as interest expense. |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Engine
Products segment | |||||||||||||||
Off-Road | $ | 67.5 | $ | 79.0 | $ | 136.1 | $ | 155.2 | |||||||
On-Road | 33.8 | 42.8 | 74.5 | 88.7 | |||||||||||
Aftermarket | 308.1 | 321.1 | 627.5 | 652.3 | |||||||||||
Aerospace
and Defense | 26.2 | 26.1 | 56.6 | 53.7 | |||||||||||
Engine Products segment net sales | $ | 435.6 | $ | 469.0 | $ | 894.7 | $ | 949.9 | |||||||
Engine
Products segment earnings before income taxes | $ | 53.3 | $ | 53.2 | $ | 115.7 | $ | 117.1 |
Three
Months Ended January 31, | Six Months Ended January 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Industrial
Products segment: | |||||||||||||||
Industrial Filtration Solutions | $ | 155.0 | $ | 164.6 | $ | 304.1 | $ | 314.0 | |||||||
Gas
Turbine Systems | 24.3 | 27.5 | 45.0 | 53.0 | |||||||||||
Special Applications | 47.1 | 42.6 | 90.9 | 88.2 | |||||||||||
Industrial
Products segment net sales | $ | 226.4 | $ | 234.7 | $ | 440.0 | $ | 455.2 | |||||||
Industrial
Products segment earnings before income taxes | $ | 34.6 | $ | 32.2 | $ | 64.1 | $ | 68.8 |
Period | Total
Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of
Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
November 1 - November 30, 2019 | — | $ | — | — | 11,394,455 | ||||||||
December
1 - December 31, 2019 | — | — | — | 11,394,455 | |||||||||
January 1 - January
31, 2020 | — | — | — | 11,394,455 | |||||||||
Total | — | $ | — | — | 11,394,455 |
(1) | The Board of Directors has authorized the repurchase of up to 13.0 million shares of the Company’s common stock. This repurchase authorization is effective until terminated by the Board of Directors. The Company had remaining authorization to repurchase 11.4 million shares under this plan. There were no repurchases of common stock made outside of the Company’s current repurchase authorization during the three months ended January
31, 2020. While not considered repurchases of shares, the Company does at times withhold shares that would otherwise be issued under stock-based awards to cover the withholding of taxes due as a result of exercising stock options or payment of stock-based awards. |
Item 6. | Exhibits |
101 – The following information from Donaldson Company, Inc. Quarterly Report on Form 10-Q for the fiscal quarter ended January 31, 2020, as filed with the Securities and Exchange Commission, formatted in inline eXtensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Changes in Shareholders’ Equity and (vi) the Notes to Condensed Consolidated Financial
Statements | |
104 – The cover page from Donaldson Company Inc.’s Quarterly Report on Form 10-Q for the quarter ended January 31, 2020, formatted in iXBRL (included as Exhibit 101). |
* | Exhibit has previously been filed with the Securities and Exchange Commission and is incorporated herein by reference as an exhibit. |
DONALDSON COMPANY, INC. | ||
(Registrant) |
Date:
March 6, 2020 | By: | /s/ Tod E. Carpenter |
Chairman, President and Chief Executive Officer (duly authorized officer) | ||
Date:
March 6, 2020 | By: | |
Senior Vice President and Chief Financial Officer (principal financial officer) | ||
Date:
March 6, 2020 | By: | /s/ Peter J. Keller |
Corporate Controller (principal accounting officer) |
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
7/31/20 | S-8 POS | |||
Filed on: | 3/6/20 | |||
2/29/20 | ||||
2/21/20 | ||||
For Period end: | 1/31/20 | |||
12/31/19 | 11-K, SD | |||
11/30/19 | ||||
11/22/19 | DEF 14A | |||
10/31/19 | 10-Q | |||
10/28/19 | ||||
8/1/19 | ||||
7/31/19 | 10-K | |||
1/31/19 | 10-Q | |||
10/31/18 | 10-Q, 4 | |||
7/31/18 | 10-K | |||
1/1/18 | ||||
List all Filings |