QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
ý | Accelerated filer | ¨ | ||||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ||||
Emerging growth company | ||||||
Page | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 4. | |||
Item 6. | |||
PART I – | FINANCIAL INFORMATION |
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2019 | March 31, 2019 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Accounts receivable, net of allowance for doubtful accounts: June 30, 2019 - $12,477; March 31, 2019 - $10,813 | ||||||||
Inventories, net | ||||||||
Prepaid and other current assets | ||||||||
Total current assets | ||||||||
Property, plant, and equipment, net | ||||||||
Goodwill | ||||||||
Other intangible assets, net | ||||||||
Deferred taxes | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | $ | ||||||
Accounts payable | ||||||||
Accrued expenses | ||||||||
Total current liabilities | ||||||||
Long-term debt, net of unamortized debt issuance costs | ||||||||
Deferred taxes | ||||||||
Other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies | ||||||||
Equity: | ||||||||
Preferred Stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding at June 30, 2019 and at March 31, 2019 | ||||||||
Common Stock, 0.01 par value per share, 135,000,000 shares authorized, 55,080,346 shares issued and 42,478,439 shares outstanding at June 30, 2019; 54,848,523 shares issued and 42,620,750 shares outstanding at March 31, 2019 | ||||||||
Additional paid-in capital | ||||||||
Treasury stock at cost, 12,601,907 shares held as of June 30, 2019 and 12,227,773 shares held as of March 31, 2019 | ( | ) | ( | ) | ||||
Retained earnings | ||||||||
Contra equity - indemnification receivable | ( | ) | ( | ) | ||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Total EnerSys stockholders’ equity | ||||||||
Nonredeemable noncontrolling interests | ||||||||
Total equity | ||||||||
Total liabilities and equity | $ | $ | ||||||
Quarter ended | ||||||||
June 30, 2019 | July 1, 2018 | |||||||
Net sales | $ | $ | ||||||
Cost of goods sold | ||||||||
Inventory adjustment relating to exit activities | ||||||||
Gross profit | ||||||||
Operating expenses | ||||||||
Restructuring and other exit charges | ||||||||
Operating earnings | ||||||||
Interest expense | ||||||||
Other (income) expense, net | ( | ) | ||||||
Earnings before income taxes | ||||||||
Income tax expense | ||||||||
Net earnings | ||||||||
Net earnings attributable to noncontrolling interests | ||||||||
Net earnings attributable to EnerSys stockholders | $ | $ | ||||||
Net earnings per common share attributable to EnerSys stockholders: | ||||||||
Basic | $ | $ | ||||||
Diluted | $ | $ | ||||||
Dividends per common share | $ | $ | ||||||
Weighted-average number of common shares outstanding: | ||||||||
Basic | ||||||||
Diluted | ||||||||
Quarter ended | ||||||||
June 30, 2019 | July 1, 2018 | |||||||
Net earnings | $ | $ | ||||||
Other comprehensive (loss) income: | ||||||||
Net unrealized (loss) gain on derivative instruments, net of tax | ( | ) | ||||||
Pension funded status adjustment, net of tax | ||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ||||
Total other comprehensive loss, net of tax | ( | ) | ( | ) | ||||
Total comprehensive income (loss) | ( | ) | ||||||
Comprehensive loss attributable to noncontrolling interests | ( | ) | ( | ) | ||||
Comprehensive income (loss) attributable to EnerSys stockholders | $ | $ | ( | ) | ||||
Quarter ended | ||||||||
June 30, 2019 | July 1, 2018 | |||||||
Cash flows from operating activities | ||||||||
Net earnings | $ | $ | ||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
Depreciation and amortization | ||||||||
Write-off of assets relating to exit activities | ||||||||
Derivatives not designated in hedging relationships: | ||||||||
Net (gains) losses | ( | ) | ||||||
Cash settlements | ( | ) | ( | ) | ||||
Provision for doubtful accounts | ||||||||
Deferred income taxes | ( | ) | ||||||
Non-cash interest expense | ||||||||
Stock-based compensation | ||||||||
Loss (gain) on disposal of property, plant, and equipment | ( | ) | ||||||
Changes in assets and liabilities, net of effects of acquisitions: | ||||||||
Accounts receivable | ||||||||
Inventories | ( | ) | ( | ) | ||||
Prepaid and other current assets | ( | ) | ||||||
Other assets | ( | ) | ||||||
Accounts payable | ( | ) | ( | ) | ||||
Accrued expenses | ( | ) | ( | ) | ||||
Other liabilities | ||||||||
Net cash provided by operating activities | ||||||||
Cash flows from investing activities | ||||||||
Capital expenditures | ( | ) | ( | ) | ||||
Proceeds from disposal of property, plant, and equipment | ||||||||
Net cash used in investing activities | ( | ) | ( | ) | ||||
Cash flows from financing activities | ||||||||
Net (repayments) borrowings on short-term debt | ( | ) | ||||||
Proceeds from 2017 Revolver borrowings | ||||||||
Repayments of 2017 Revolver borrowings | ( | ) | ( | ) | ||||
Repayments of 2017 Term Loan | ( | ) | ||||||
Option proceeds | ||||||||
Payment of taxes related to net share settlement of equity awards | ( | ) | ( | ) | ||||
Purchase of treasury stock | ( | ) | ||||||
Dividends paid to stockholders | ( | ) | ( | ) | ||||
Other | ( | ) | ||||||
Net cash (used in) provided by financing activities | ( | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ) | ||||||
Net (decrease) increase in cash and cash equivalents | ( | ) | ( | ) | ||||
Cash and cash equivalents at beginning of period | ||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||
• | to adopt the optional transition method defined within ASU 2018-11 and not restate comparative prior periods but instead recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption; |
• | the package of three practical expedients addressing whether a contract contains a lease, lease classification and initial direct costs; |
• | to combine lease and non-lease components as a single component for all asset classes; |
• | to use a portfolio approach to determine the incremental borrowing rate; and |
• | to apply the short-term lease exception to leases that, at the commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise. |
Classification | June 30, 2019 | |||||
Operating Leases: | ||||||
Right-of-use Assets | Other assets | $ | ||||
Operating lease current liabilities | Accrued expenses | |||||
Operating lease non-current liabilities | Other liabilities | |||||
Finance Leases: | ||||||
Right-of-use Assets | Property, plant, and equipment, net | $ | ||||
Finance lease current liabilities | Current portion of debt | |||||
Finance lease non-current liabilities | Non-current portion of debt | |||||
Classification | Quarter ended June 30, 2019 | |||||
Operating Leases: | ||||||
Operating lease cost | Operating expenses | $ | ||||
Variable lease cost | Operating expenses | |||||
Short term lease cost | Operating expenses | |||||
Finance Leases: | ||||||
Depreciation | Operating expenses | $ | ||||
Interest expense | Interest expense | |||||
Total | $ | |||||
Quarter ended June 30, 2019 | ||
Operating Leases: | ||
Weighted average remaining lease term (years) | ||
Weighted average discount rate | ||
Finance Leases: | ||
Weighted average remaining lease term (years) | ||
Weighted average discount rate | ||
Quarter ended June 30, 2019 | ||||||||
Finance Leases | Operating Leases | |||||||
Nine months ended March 31, 2020 | $ | $ | ||||||
Year ended March 31, | ||||||||
2021 | ||||||||
2022 | ||||||||
2023 | ||||||||
2024 | ||||||||
Thereafter | ||||||||
Total undiscounted lease payments | ||||||||
Present value discount | ||||||||
Lease liability | $ | $ | ||||||
Quarter ended June 30, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from finance leases | $ | |||
Operating cash flows from operating leases | ||||
Financing cash flows from finance leases | ||||
Supplemental non-cash information on lease liabilities arising from right-of-use assets: | ||||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ | |||
Right-of-use assets obtained in exchange for new operating lease liabilities | ||||
Accounts receivable | $ | |||
Inventories | ||||
Other current assets | ||||
Other intangible assets | ||||
Property, plant and equipment | ||||
Other assets | ||||
Total assets acquired | $ | |||
Accounts payable | ||||
Accrued liabilities | ||||
Deferred income taxes | ||||
Other liabilities | ||||
Total liabilities assumed | $ | |||
Net assets acquired | $ | |||
Purchase price: | ||||
Cash paid for net assets acquired | $ | |||
Fair value of shares issued for net assets acquired | ||||
Working capital adjustment | ( | ) | ||
Total purchase consideration | ||||
Less: Fair value of acquired identifiable assets and liabilities | ||||
Goodwill | $ | |||
Type | Life in Years | Fair Value | ||||||
Trademarks | Indefinite-lived | Indefinite | $ | |||||
Customer relationships | Finite-lived | |||||||
Technology | Finite-lived | |||||||
Total identifiable intangible assets | $ | |||||||
Quarter ended | ||||
July 1, 2018 | ||||
Net sales | $ | |||
Net earnings attributable to EnerSys stockholders | ||||
Net earnings per share attributable to EnerSys stockholders - basic | ||||
Net earnings per share attributable to EnerSys stockholders - assuming dilution | ||||
Balance as of | ||||||||||||||||||||||||
June 30, 2019 | March 31, 2019 | |||||||||||||||||||||||
Gross Amount | Accumulated Amortization | Net Amount | Gross Amount | Accumulated Amortization | Net Amount | |||||||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||||||
Trademarks | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
Finite-lived intangible assets: | ||||||||||||||||||||||||
Customer relationships | ( | ) | ( | ) | ||||||||||||||||||||
Non-compete | ( | ) | ( | ) | ||||||||||||||||||||
Technology | ( | ) | ( | ) | ||||||||||||||||||||
Trademarks | ( | ) | ( | ) | ||||||||||||||||||||
Licenses | ( | ) | ( | ) | ||||||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | ||||||||||||||
June 30, 2019 | March 31, 2019 | |||||||
Raw materials | $ | $ | ||||||
Work-in-process | ||||||||
Finished goods | ||||||||
Total | $ | $ | ||||||
Total Fair Value Measurement June 30, 2019 | Quoted Price in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Lead forward contracts | $ | $ | — | $ | $ | — | ||||||||||
Foreign currency forward contracts | — | — | ||||||||||||||
Total derivatives | $ | $ | — | $ | $ | — | ||||||||||
Total Fair Value Measurement March 31, 2019 | Quoted Price in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
Lead forward contracts | $ | ( | ) | $ | — | $ | ( | ) | $ | — | ||||||
Foreign currency forward contracts | ( | ) | — | ( | ) | — | ||||||||||
Total derivatives | $ | ( | ) | $ | — | $ | ( | ) | $ | — | ||||||
June 30, 2019 | March 31, 2019 | |||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||
Financial assets: | ||||||||||||||||
Derivatives (1) | $ | $ | $ | $ | ||||||||||||
Financial liabilities: | ||||||||||||||||
Notes (2) | $ | $ | $ | $ | ||||||||||||
Derivatives (1) | ||||||||||||||||
(1) | Represents lead and foreign currency forward contracts (see Note 7 for asset and liability positions of the lead and foreign currency forward contracts at June 30, 2019 and March 31, 2019). |
(2) |
Derivatives and Hedging Activities Designated as Cash Flow Hedges | Derivatives and Hedging Activities Not Designated as Hedging Instruments | |||||||||||||||
June 30, 2019 | March 31, 2019 | June 30, 2019 | March 31, 2019 | |||||||||||||
Prepaid and other current assets: | ||||||||||||||||
Lead forward contracts | $ | $ | $ | $ | ||||||||||||
Foreign currency forward contracts | ||||||||||||||||
Total assets | $ | $ | $ | $ | ||||||||||||
Accrued expenses: | ||||||||||||||||
Lead forward contracts | $ | $ | $ | $ | ||||||||||||
Foreign currency forward contracts | ||||||||||||||||
Total liabilities | $ | $ | $ | $ | ||||||||||||
Derivatives Designated as Cash Flow Hedges | Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||
Lead forward contracts | $ | ( | ) | Cost of goods sold | $ | ( | ) | |||
Foreign currency forward contracts | ( | ) | Cost of goods sold | ( | ) | |||||
Total | $ | ( | ) | $ | ( | ) | ||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivatives | Pretax Gain (Loss) | |||
Foreign currency forward contracts | Other (income) expense, net | $ | |||
Total | $ | ||||
Derivatives Designated as Cash Flow Hedges | Pretax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||
Lead forward contracts | $ | Cost of goods sold | $ | |||||||
Foreign currency forward contracts | Cost of goods sold | ( | ) | |||||||
Total | $ | $ | ( | ) | ||||||
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivatives | Pretax Gain (Loss) | |||
Foreign currency forward contracts | Other (income) expense, net | $ | ( | ) | |
Total | $ | ( | ) | ||
Quarter ended | ||||||||
June 30, 2019 | July 1, 2018 | |||||||
Balance at beginning of period | $ | $ | ||||||
Current period provisions | ||||||||
Costs incurred | ( | ) | ( | ) | ||||
Foreign currency translation adjustment | ( | ) | ||||||
Balance at end of period | $ | $ | ||||||
Employee Severance | Other | Total | ||||||||||
Balance as of March 31, 2019 | $ | $ | $ | |||||||||
Accrued | ||||||||||||
Costs incurred | ( | ) | ( | ) | ( | ) | ||||||
Foreign currency impact | ( | ) | ||||||||||
Balance as of June 30, 2019 | $ | $ | $ | |||||||||
June 30, 2019 | March 31, 2019 | |||||||||||||||
Principal | Unamortized Issuance Costs | Principal | Unamortized Issuance Costs | |||||||||||||
5.00% Senior Notes due 2023 | $ | $ | $ | $ | ||||||||||||
Amended Credit Facility, due 2022 | ||||||||||||||||
$ | $ | $ | $ | |||||||||||||
Less: Unamortized issuance costs | ||||||||||||||||
Long-term debt, net of unamortized issuance costs | $ | $ | ||||||||||||||
United States Plans | International Plans | |||||||||||||||
Quarter ended | Quarter ended | |||||||||||||||
June 30, 2019 | July 1, 2018 | June 30, 2019 | July 1, 2018 | |||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost | ||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization and deferral | ||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ | ||||||||||||
Shares outstanding as of March 31, 2019 | |||
Purchase of treasury stock | ( | ) | |
Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes | |||
Shares outstanding as of June 30, 2019 | |||
March 31, 2019 | Before Reclassifications | Amounts Reclassified from AOCI | June 30, 2019 | |||||||||||||
Pension funded status adjustment | $ | ( | ) | $ | $ | $ | ( | ) | ||||||||
Net unrealized (loss) gain on derivative instruments | ( | ) | ( | ) | ( | ) | ||||||||||
Foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | ||||||||||
Accumulated other comprehensive (loss) income | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) | ||||||
Components of AOCI | Amounts Reclassified from AOCI | Location of (Gain) Loss Recognized on Income Statement | ||||
Derivatives in cash flow hedging relationships: | ||||||
Net loss on cash flow hedging derivative instruments | $ | Cost of goods sold | ||||
Tax benefit | ( | ) | ||||
Net loss on derivative instruments, net of tax | $ | |||||
Defined benefit pension costs: | ||||||
Prior service costs and deferrals | $ | Net periodic benefit cost, included in other (income) expense, net - See Note 13 | ||||
Tax benefit | ( | ) | ||||
Net periodic benefit cost, net of tax | $ | |||||
Components of AOCI | Amounts Reclassified from AOCI | Location of (Gain) Loss Recognized on Income Statement | ||||
Derivatives in cash flow hedging relationships: | ||||||
Net loss on cash flow hedging derivative instruments | $ | Cost of goods sold | ||||
Tax benefit | ( | ) | ||||
Net loss on derivative instruments, net of tax | $ | |||||
Defined benefit pension costs: | ||||||
Prior service costs and deferrals | $ | Net periodic benefit cost, included in other (income) expense, net - See Note 13 | ||||
Tax benefit | ( | ) | ||||
Net periodic benefit cost, net of tax | $ | |||||
(In Thousands, Except Per Share Data) | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Contra-Equity | Total EnerSys Stockholders’ Equity | Non- redeemable Non- Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | — | $ | 548 | $ | 512,696 | $ | (530,760 | ) | $ | 1,450,325 | $ | (142,682 | ) | $ | (7,840 | ) | $ | 1,282,287 | $ | 3,730 | $ | 1,286,017 | |||||||||||||||||
Stock-based compensation | — | — | 3,874 | — | — | — | — | 3,874 | — | 3,874 | ||||||||||||||||||||||||||||||
Exercise of stock options | — | 3 | 35 | — | — | — | — | 38 | — | 38 | ||||||||||||||||||||||||||||||
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | — | — | (6,081 | ) | — | — | — | — | (6,081 | ) | — | (6,081 | ) | |||||||||||||||||||||||||||
Purchase of common stock | — | — | — | (23,029 | ) | — | — | — | (23,029 | ) | — | (23,029 | ) | |||||||||||||||||||||||||||
Other | — | — | (80 | ) | — | — | — | — | (80 | ) | — | (80 | ) | |||||||||||||||||||||||||||
Net earnings | — | — | — | — | 48,636 | — | — | 48,636 | — | 48,636 | ||||||||||||||||||||||||||||||
Dividends ($0.175 per common share) | — | — | 133 | — | (7,632 | ) | — | — | (7,499 | ) | — | (7,499 | ) | |||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Pension funded status adjustment (net of tax benefit of $68) | — | — | — | — | — | 237 | — | 237 | — | 237 | ||||||||||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments (net of tax benefit of $720) | — | — | — | — | — | (2,329 | ) | — | (2,329 | ) | — | (2,329 | ) | |||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (3,128 | ) | — | (3,128 | ) | (83 | ) | (3,211 | ) | ||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | — | $ | 551 | $ | 510,577 | $ | (553,789 | ) | $ | 1,491,329 | $ | (147,902 | ) | $ | (7,840 | ) | $ | 1,292,926 | $ | 3,647 | $ | 1,296,573 | |||||||||||||||||
(In Thousands, Except Per Share Data) | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Contra-Equity | Total EnerSys Stockholders’ Equity | Non- redeemable Non- Controlling Interests | Total Equity | ||||||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | — | $ | 546 | $ | 477,288 | $ | (560,991 | ) | $ | 1,320,549 | $ | (41,717 | ) | $ | — | $ | 1,195,675 | $ | 5,436 | $ | 1,201,111 | ||||||||||||||||||
Stock-based compensation | — | — | 4,341 | — | — | — | — | 4,341 | — | 4,341 | ||||||||||||||||||||||||||||||
Exercise of stock options | — | 2 | 6,795 | — | — | — | — | 6,797 | — | 6,797 | ||||||||||||||||||||||||||||||
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | — | — | (3,453 | ) | — | — | — | — | (3,453 | ) | — | (3,453 | ) | |||||||||||||||||||||||||||
Other | — | — | (152 | ) | — | — | — | — | (152 | ) | — | (152 | ) | |||||||||||||||||||||||||||
Net earnings | — | — | — | — | 45,860 | — | — | 45,860 | 160 | 46,020 | ||||||||||||||||||||||||||||||
Dividends ($0.175 per common share) | — | — | 141 | — | (7,512 | ) | — | — | (7,371 | ) | — | (7,371 | ) | |||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||
Pension funded status adjustment (net of tax benefit of $68) | — | — | — | — | — | 300 | — | 300 | — | 300 | ||||||||||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments (net of tax expense of $306) | — | — | — | — | — | 1,005 | — | 1,005 | — | 1,005 | ||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | (71,664 | ) | — | (71,664 | ) | (499 | ) | (72,163 | ) | ||||||||||||||||||||||||||
Balance at July 1, 2018 | $ | — | $ | 548 | $ | 484,960 | $ | (560,991 | ) | $ | 1,358,897 | $ | (112,076 | ) | $ | — | $ | 1,171,338 | $ | 5,097 | $ | 1,176,435 | ||||||||||||||||||
Quarter ended | ||||||||
June 30, 2019 | July 1, 2018 | |||||||
Net earnings attributable to EnerSys stockholders | $ | $ | ||||||
Weighted-average number of common shares outstanding: | ||||||||
Basic | ||||||||
Dilutive effect of: | ||||||||
Common shares from exercise and lapse of equity awards, net of shares assumed reacquired | ||||||||
Diluted weighted-average number of common shares outstanding | ||||||||
Basic earnings per common share attributable to EnerSys stockholders | $ | $ | ||||||
Diluted earnings per common share attributable to EnerSys stockholders | $ | $ | ||||||
Anti-dilutive equity awards not included in diluted weighted-average common shares | ||||||||
• | Americas, which includes North and South America, with segment headquarters in Reading, Pennsylvania, USA; |
• | EMEA, which includes Europe, the Middle East and Africa, with segment headquarters in Zug, Switzerland; and |
• | Asia, which includes Asia, Australia and Oceania, with segment headquarters in Singapore. |
Quarter ended | ||||||||
June 30, 2019 | July 1, 2018 | |||||||
Net sales by segment to unaffiliated customers | ||||||||
Americas | $ | $ | ||||||
EMEA | ||||||||
Asia | ||||||||
Total net sales | $ | $ | ||||||
Net sales by product line | ||||||||
Reserve power | $ | $ | ||||||
Motive power | ||||||||
Total net sales | $ | $ | ||||||
Intersegment sales | ||||||||
Americas | $ | $ | ||||||
EMEA | ||||||||
Asia | ||||||||
Total intersegment sales (1) | $ | $ | ||||||
Operating earnings by segment | ||||||||
Americas | $ | $ | ||||||
EMEA | ||||||||
Asia | ||||||||
Restructuring charges - Americas | ( | ) | ||||||
Restructuring and other exit charges - EMEA | ( | ) | ( | ) | ||||
Restructuring charges - Asia | ( | ) | ||||||
Inventory adjustment relating to exit activities - Asia | ( | ) | ||||||
Fixed asset write-off relating to exit activities - Asia | ( | ) | ||||||
Total operating earnings (2) | $ | $ | ||||||
Americas | EMEA | Asia | Total | |||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ||||||||||||
Foreign currency translation adjustment | ( | ) | ||||||||||||||
Balance as of June 30, 2019 | $ | $ | $ | $ | ||||||||||||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | general cyclical patterns of the industries in which our customers operate; |
• | the extent to which we cannot control our fixed and variable costs; |
• | the raw materials in our products may experience significant fluctuations in market price and availability; |
• | certain raw materials constitute hazardous materials that may give rise to costly environmental and safety claims; |
• | legislation regarding the restriction of the use of certain hazardous substances in our products; |
• | risks involved in our operations such as disruption of markets, changes in import and export laws, environmental regulations, currency restrictions and local currency exchange rate fluctuations; |
• | our ability to raise our selling prices to our customers when our product costs increase; |
• | the extent to which we are able to efficiently utilize our global manufacturing facilities and optimize our capacity; |
• | general economic conditions in the markets in which we operate; |
• | competitiveness of the battery markets and other energy solutions for industrial applications throughout the world; |
• | our timely development of competitive new products and product enhancements in a changing environment and the acceptance of such products and product enhancements by customers; |
• | our ability to adequately protect our proprietary intellectual property, technology and brand names; |
• | litigation and regulatory proceedings to which we might be subject; |
• | our expectations concerning indemnification obligations; |
• | changes in our market share in the geographic business segments where we operate; |
• | our ability to implement our cost reduction initiatives successfully and improve our profitability; |
• | quality problems associated with our products; |
• | our ability to implement business strategies, including our acquisition strategy, manufacturing expansion and restructuring plans; |
• | our acquisition strategy may not be successful in locating advantageous targets; |
• | our ability to successfully integrate any assets, liabilities, customers, systems and management personnel we acquire into our operations and our ability to realize related revenue synergies, strategic gains, and cost savings may be significantly harder to achieve, if at all, or may take longer to achieve; |
• | potential goodwill impairment charges, future impairment charges and fluctuations in the fair values of reporting units or of assets in the event projected financial results are not achieved within expected time frames; |
• | our debt and debt service requirements which may restrict our operational and financial flexibility, as well as imposing unfavorable interest and financing costs; |
• | our ability to maintain our existing credit facilities or obtain satisfactory new credit facilities; |
• | adverse changes in our short and long-term debt levels under our credit facilities; |
• | our exposure to fluctuations in interest rates on our variable-rate debt; |
• | our ability to attract and retain qualified management and personnel; |
• | our ability to maintain good relations with labor unions; |
• | credit risk associated with our customers, including risk of insolvency and bankruptcy; |
• | our ability to successfully recover in the event of a disaster affecting our infrastructure; |
• | terrorist acts or acts of war, could cause damage or disruption to our operations, our suppliers, channels to market or customers, or could cause costs to increase, or create political or economic instability; and |
• | the operation, capacity and security of our information systems and infrastructure. |
• | Americas, which includes North and South America, with our segment headquarters in Reading, Pennsylvania, U.S.A.; |
• | EMEA, which includes Europe, the Middle East and Africa, with our segment headquarters in Zug, Switzerland; and |
• | Asia, which includes Asia, Australia and Oceania, with our segment headquarters in Singapore. |
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | ||||||||||||||||
Americas | $ | 517.1 | 66.3 | % | $ | 392.5 | 58.5 | % | $ | 124.6 | 31.7 | % | |||||||||
EMEA | 203.2 | 26.0 | 210.5 | 31.4 | (7.3 | ) | (3.5 | ) | |||||||||||||
Asia | 59.9 | 7.7 | 67.9 | 10.1 | (8.0 | ) | (11.7 | ) | |||||||||||||
Total net sales | $ | 780.2 | 100.0 | % | $ | 670.9 | 100.0 | % | $ | 109.3 | 16.3 | % | |||||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | ||||||||||||||||
Reserve power | $ | 435.8 | 55.9 | % | $ | 324.0 | 48.3 | % | $ | 111.8 | 34.5 | % | |||||||||
Motive power | 344.4 | 44.1 | 346.9 | 51.7 | (2.5 | ) | (0.7 | ) | |||||||||||||
Total net sales | $ | 780.2 | 100.0 | % | $ | 670.9 | 100.0 | % | $ | 109.3 | 16.3 | % | |||||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | ||||||||||||||||
Gross Profit | $ | 201.5 | 25.8 | % | $ | 165.3 | 24.6 | % | $ | 36.2 | 21.9 | % | |||||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | ||||||||||||||||
Operating expenses | $ | 130.8 | 16.7 | % | $ | 99.3 | 14.8 | % | $ | 31.5 | 31.6 | % | |||||||||
Restructuring charges | $ | 2.4 | 0.3 | % | $ | 1.8 | 0.3 | % | $ | 0.6 | 36.4 | % | |||||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales (1) | In Millions | Percentage of Total Net Sales (1) | In Millions | % | ||||||||||||||||
Americas | $ | 54.4 | 10.5 | % | $ | 47.8 | 12.2 | % | $ | 6.6 | 13.9 | % | |||||||||
EMEA | 15.7 | 7.7 | 17.2 | 8.2 | (1.5 | ) | NM | ||||||||||||||
Asia | 0.6 | 1.1 | 1.5 | 2.2 | (0.9 | ) | (1.8 | ) | |||||||||||||
Subtotal | 70.7 | 9.1 | 66.5 | 9.9 | 4.2 | 6.4 | |||||||||||||||
Restructuring charges - Americas | (0.6 | ) | (0.1 | ) | — | — | (0.6 | ) | NM | ||||||||||||
Restructuring and other exit charges - EMEA | (1.3 | ) | (0.6 | ) | (1.2 | ) | (0.6 | ) | (0.1 | ) | NM | ||||||||||
Inventory write-off relating to exit activities - Asia | — | — | (0.5 | ) | (0.8 | ) | 0.5 | NM | |||||||||||||
Restructuring charges - Asia | (0.5 | ) | (0.8 | ) | — | — | (0.5 | ) | NM | ||||||||||||
Fixed asset write-off relating to exit activities - Asia | — | — | (0.6 | ) | (0.8 | ) | 0.6 | NM | |||||||||||||
Total operating earnings | $ | 68.3 | 8.8 | % | $ | 64.2 | 9.5 | % | $ | 4.1 | 6.5 | % | |||||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | ||||||||||||||||
Interest expense | $ | 10.9 | 1.4 | % | $ | 6.5 | 1.0 | % | $ | 4.4 | 67.3 | % | |||||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | ||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||
Other (income) expense, net | $ | (1.2 | ) | (0.1 | )% | $ | 0.4 | — | % | $ | (1.6 | ) | NM | |||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | ||||||||||||||||
Earnings before income taxes | $ | 58.6 | 7.5 | % | $ | 57.3 | 8.5 | % | $ | 1.3 | 2.2 | % | |||||||||
Quarter ended June 30, 2019 | Quarter ended July 1, 2018 | Increase (Decrease) | |||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | ||||||||||||||||
Income tax expense | $ | 10.0 | 1.3 | % | $ | 11.3 | 1.7 | % | $ | (1.3 | ) | (12.0 | )% | ||||||||
Effective tax rate | 17.0% | 19.7% | (2.7)% | ||||||||||||||||||
($ in Millions) | |||||||||||||||||||||||
Balance At (1) | Trade Receivables | Inventory | Accounts Payable | Total | Quarter Revenue Annualized | Primary Working Capital % | |||||||||||||||||
June 30, 2019 | $ | 621.3 | $ | 520.1 | $ | (302.8 | ) | $ | 838.6 | $ | 3,120.9 | 26.9 | % | ||||||||||
March 31, 2019 | 624.1 | 503.9 | (292.4 | ) | 835.6 | 3,186.4 | 26.2 | ||||||||||||||||
July 1, 2018 | 518.3 | 394.2 | (239.9 | ) | 672.6 | 2,683.7 | 25.1 | ||||||||||||||||
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Date | $’s Under Contract (in millions) | # Pounds Purchased (in millions) | Average Cost/Pound | Approximate % of Lead Requirements (1) | ||||||||||
June 30, 2019 | $ | 33.0 | 38.0 | $ | 0.87 | 6 | % | |||||||
March 31, 2019 | 39.2 | 42.0 | 0.93 | 7 | ||||||||||
July 1, 2018 | 64.3 | 58.8 | 1.09 | 12 | ||||||||||
ITEM 4. | CONTROLS AND PROCEDURES |
PART II | OTHER INFORMATION |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | (a) Total number of shares (or units) purchased | (b) Average price paid per share (or unit) | (c) Total number of shares (or units) purchased as part of publicly announced plans or programs | (d) Maximum number (or approximate dollar value) of shares (or units) that may be purchased under the plans or programs (1) (2) | ||||||||||
April 1 – April 28, 2019 | — | $ | — | — | $ | 43,563,613 | ||||||||
April 29 – May 26, 2019 | 92,254 | 62.81 | — | 43,563,613 | ||||||||||
May 27 – June 30, 2019 | 376,343 | 61.19 | 376,343 | 20,535,323 | ||||||||||
Total | 468,597 | $ | 61.51 | 376,343 | ||||||||||
Item 4. | Mine Safety Disclosures |
ITEM 6. | EXHIBITS |
Exhibit Number | Description of Exhibit | |
2.1 | ||
3.1 | ||
3.2 | ||
10.1 | ||
10.2 | ||
10.3 | ||
10.4 | ||
31.1 | ||
31.2 | ||
32.1 | ||
101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. | |
101.SCH | XBRL Taxonomy Extension Schema Document | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |
ENERSYS (Registrant) | ||
By | /s/ Michael J. Schmidtlein | |
Michael J. Schmidtlein | ||
Chief Financial Officer | ||
Actual TSR Percentile | TSR Performance Multiplier | |
75th or higher | 200 | % |
50th | 100 | % |
25th | 50 | % |
Below 25th | 0 | % |
1. | Nature of Grant. In accepting the Award, the Participant acknowledges that: |
2. | Payment of Taxes. The following provisions supplement Section 7 of the Agreement entitled “Taxes.” |
3. | Insider Trading Restrictions/Market Abuse Laws. The Participant acknowledges that, depending on the Participant’s country of residence (and country of employment, if different), the Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect the Participant’s ability to acquire or sell shares of Common Stock or rights to shares of Common Stock (e.g., PSUs) under the Plan during such times as the Participant is considered to have “inside information” (as defined by the laws in the applicable country). The insider trading and/or market abuse laws may be different from any Company Insider Trading Policy. The Participant personally is responsible for ensuring compliance with any applicable restrictions and should consult |
4. | Foreign Asset/Account and Exchange Control Reporting. The Participant’s country of residence (and country of employment, if different) may have certain exchange controls and foreign asset and/or account reporting requirements which may affect the Participant’s ability to purchase or hold shares of Common Stock under the Plan or receive cash from the Participant’s participation in the Plan (including from any dividends received or sale proceeds arising from the sale of shares of Common Stock) in a brokerage or bank account outside the Participant’s country of residence (and country of employment, if different). The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant’s country of residence (and country of employment, if different). Further, the Participant may be required to repatriate the shares of Common Stock or proceeds acquired as a result of participating in the Plan to the Participant’s country of residence (and country of employment, if different) through a designated bank/broker and/or within a certain time. The Participant personally is responsible for ensuring compliance with any applicable reporting obligations and should consult with the Participant’s personal legal advisor for additional information about such obligations. |
Section II. | All Countries Excluding France, Germany, Italy, Netherlands, Poland and United Kingdom |
Section III. | France, Germany, Italy, Netherlands, Poland and United Kingdom |
• | Section 3 (Terms and Conditions) |
• | Section 4 (Noncompetition) |
• | Section 5 (Wrongful Solicitation) |
• | Section 6 (Confidentiality; Specific Performance) |
• | Section 18 (Investment Representation) |
• | Section 19 (Entire Agreement; Language; Governing Law) |
• | Section 23(e) (Clawback Policy) |
• | Appendix A, Section I (Nature of Grant) |
• | Appendix A, Section I (Payment of Taxes) |
• | Appendix A, Section III (Data Privacy Notice) |
I hereby explicitly, voluntarily and unambiguously consent to the collection, use and transfer, in electronic or other form, of my personal data as described in this Agreement and Appendix and any other Plan grant materials by and among, as applicable, the Employer, the Company and any of its other Subsidiaries or Affiliates or any third parties authorized by the same in assisting in the implementation, administration and management of my participation in the Plan. I may have previously provided the Company and the Employer with, and the Company and the Employer may hold, certain personal information about me, including, but not limited to, my name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, the fact and conditions of my participation in the Plan, details of all PSUs or any other entitlement to Shares awarded, cancelled, exercised, vested, unvested or outstanding in my favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan. I also authorize any transfer of Data, as may be required, to any external stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan and/or with whom any shares acquired upon vesting of PSUs are deposited. I acknowledge that these recipients may be located in my country or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections to my country, which may not give the same level of protection to Data. I understand that I may request a list with the names and addresses of any potential recipients of Data by contacting my local human resources representative. I authorize the Company, the external stock plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing my participation in the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing my participation in the Plan. I understand that Data will be held only as long as is necessary to implement, administer and manage my participation in the Plan. I understand that I may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case, without cost, by contacting in writing my local human resources representative, whose contact details are Cheng Liang Heng, cl.heng@enersys.com.sg, Further, I understand that I am providing the consents herein on a purely voluntary basis. If I do not consent, or if I later seek to revoke my consent, my employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing my consent is that the Company would not be able to grant future PSUs or other equity awards to me or administer or maintain such awards. Therefore, I understand that refusing or withdrawing my consent may affect my ability to participate in the Plan. For more information on the consequences of my refusal to consent or withdrawal of consent, I understand that I may contact my local human resources representative. | Saya dengan ini secara eksplicit, secara sukarela dan tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronik atau lain-lain, data peribadi saya seperti yang dinyatakan dalam Perjanjian dan Lampiran ini dan apa-apa bahan geran Pelan oleh dan di antara, seperti mana yang terpakai, Majikan, Syarikat dan mana-mana Anak Syarikat yang lain atau Syarikat Sekutu kami atau mana-mana pihak ketiga yang diberi kuasa oleh yang sama untuk membantu dalam pelaksanaan, pentadbiran dan pengurusan penyertaan saya dalam Pelan. Sebelum ini, saya mungkin telah membekalkan Syarikat dan Majikan dengan, dan Syarikat dan Majikan mungkin memegang, maklumat peribadi tertentu tentang saya, termasuk, tetapi tidak terhad kepada, nama saya, alamat rumah dan nombor telefon, tarikh lahir, nombor insurans sosial atau nombor pengenalan lain, gaji, kewarganegaraan, jawatan, apa-apa saham atau jawatan pengarah yang dipegang dalam Syarikat, fakta dan syarat-syarat penyertaan saya dalam Pelan, butir-butir semua PSU atau apa-apa hak lain untuk Saham yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak hak ataupun yang belum dijelaskan bagi faedah saya ("Data"), untuk tujuan yang eksklusif bagi melaksanakan, mentadbir dan menguruskan Pelan. Saya juga memberi kuasa untuk membuat apa-apa pemindahan Data, sebagaimana yang diperlukan, kepada pembekal perkhidmatan pelan saham luar yang lain sebagaimana yang mungkin dipilih oleh Syarikat pada masa depan, yang membantu Syarikat dalam pelaksanaan, pentadbiran dan pengurusan Pelan dan/atau dengan sesiapa yang mendepositkan apa-apa saham yang diperolehi apabila PSU terletak hak. . Saya mengakui bahawa penerima-penerima ini mungkin berada di negara saya atau di tempat lain, dan bahawa negara penerima (contohnya, Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan perlindungan yang berbeza daripada negara saya, yang mungkin tidak boleh memberi tahap perlindungan yang sama kepada Data. Saya faham bahawa saya boleh meminta senarai nama dan alamat mana-mana penerima Data yang berpotensi dengan menghubungi wakil sumber manusia tempatan saya. Saya memberi kuasa kepada Syarikat, pembekal perkhidmatan pelan saham luar dan mana-mana penerima lain yang mungkin membantu Syarikat (masa sekarang atau pada masa depan) untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan. Saya faham bahawa Data akan dipegang hanya untuk tempoh yang diperlukan untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan. Saya faham bahawa saya boleh, pada bila-bila masa, melihat Data, meminta maklumat tambahan mengenai penyimpanan dan pemprosesan Data, meminta bahawa pindaan-pindaan dilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakil sumber manusia tempatan saya, di mana butir-butir hubungannya adalah Cheng Liang Heng, cl.heng@enersys.com.sg. Selanjutnya, saya memahami bahawa saya memberikan persetujuan di sini secara sukarela. Jika saya tidak bersetuju, atau jika saya kemudian membatalkan persetujuan saya, status pekerjaan atau perkhidmatan dan kerjaya saya dengan Majikan tidak akan terjejas; satunya akibat buruk jika saya tidak bersetuju atau menarik balik persetujuan saya adalah bahawa Syarikat tidak akan dapat memberikan PSU pada masa depan atau anugerah ekuiti lain kepada saya atau mentadbir atau mengekalkan anugerah tersebut. Oleh itu, saya faham bahawa keengganan atau penarikan balik persetujuan saya boleh menjejaskan keupayaan saya untuk mengambil bahagian dalam Pelan. Untuk maklumat lanjut mengenai akibat keengganan saya untuk memberikan keizinan atau penarikan balik keizinan, saya fahami bahawa saya boleh menghubungi wakil sumber manusia tempatan saya. |
EPS Performance Multiplier | ||
Maximum (goal = 120% of Target Cumulative Adjusted EPS) | 200 | % |
Target Cumulative Adjusted EPS | 100 | % |
Threshold (goal = 80% of Target Cumulative Adjusted EPS) | 50 | % |
Below threshold | 0 | % |
1. | Nature of Grant. In accepting the Award, the Participant acknowledges that: |
2. | Payment of Taxes. The following provisions supplement Section 7 of the Agreement entitled “Taxes.” |
3. | Insider Trading Restrictions/Market Abuse Laws. The Participant acknowledges that, depending on the Participant’s country of residence (and country of employment, if different), the Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect the Participant’s ability to acquire or sell shares of Common Stock or rights to shares of Common Stock (e.g., PSUs) under the Plan during such times as the Participant is considered to have “inside information” (as defined by the laws in the applicable country). The insider trading and/or market abuse laws may be different from any Company Insider Trading Policy. The Participant personally is responsible for ensuring compliance with any applicable restrictions and should consult with the Participant’s personal legal advisor for additional information about any applicable restrictions and the Participant’s obligations. |
4. | Foreign Asset/Account and Exchange Control Reporting. The Participant’s country of residence (and country of employment, if different) may have certain exchange controls and foreign asset and/or account reporting requirements which may affect the Participant’s ability to purchase or hold shares of Common Stock under the Plan or receive cash from the Participant’s participation in the Plan (including from any dividends received or sale proceeds arising from the sale of shares of Common Stock) in a brokerage or bank account outside the Participant’s country of residence (and country of employment, if different). The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant’s country of residence (and country of employment, if different). Further, the Participant may be required to repatriate the shares of Common Stock or proceeds acquired as a result of participating in the Plan to the Participant’s country of residence (and country of employment, if different) through a designated bank/broker and/or within a certain time. The Participant personally is responsible for ensuring compliance with any applicable reporting obligations and should consult with the Participant’s personal legal advisor for additional information about such obligations. |
Section II. | All Countries Excluding France, Germany, Italy, Netherlands, Poland and United Kingdom |
Section III. | France, Germany, Italy, Netherlands, Poland and United Kingdom |
• | Section 3 (Terms and Conditions) |
• | Section 4 (Noncompetition) |
• | Section 5 (Wrongful Solicitation) |
• | Section 6 (Confidentiality; Specific Performance) |
• | Section 18 (Investment Representation) |
• | Section 19 (Entire Agreement; Language; Governing Law) |
• | Section 23(e) (Clawback Policy) |
• | Appendix A, Section I (Nature of Grant) |
• | Appendix A, Section I (Payment of Taxes) |
• | Appendix A, Section III (Data Privacy Notice) |
I hereby explicitly, voluntarily and unambiguously consent to the collection, use and transfer, in electronic or other form, of my personal data as described in this Agreement and Appendix and any other Plan grant materials by and among, as applicable, the Employer, the Company and any of its other Subsidiaries or Affiliates or any third parties authorized by the same in assisting in the implementation, administration and management of my participation in the Plan. I may have previously provided the Company and the Employer with, and the Company and the Employer may hold, certain personal information about me, including, but not limited to, my name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, the fact and conditions of my participation in the Plan, details of all PSUs or any other entitlement to Shares awarded, cancelled, exercised, vested, unvested or outstanding in my favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan. I also authorize any transfer of Data, as may be required, to any external stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan and/or with whom any shares acquired upon vesting of PSUs are deposited. I acknowledge that these recipients may be located in my country or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections to my country, which may not give the same level of protection to Data. I understand that I may request a list with the names and addresses of any potential recipients of Data by contacting my local human resources representative. I authorize the Company, the external stock plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing my participation in the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing my participation in the Plan. I understand that Data will be held only as long as is necessary to implement, administer and manage my participation in the Plan. I understand that I may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case, without cost, by contacting in writing my local human resources representative, whose contact details are Cheng Liang Heng, cl.heng@enersys.com.sg, Further, I understand that I am providing the consents herein on a purely voluntary basis. If I do not consent, or if I later seek to revoke my consent, my employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing my consent is that the Company would not be able to grant future PSUs or other equity awards to me or administer or maintain such awards. Therefore, I understand that refusing or withdrawing my consent may affect my ability to participate in the Plan. For more information on the consequences of my refusal to consent or withdrawal of consent, I understand that I may contact my local human resources representative. | Saya dengan ini secara eksplicit, secara sukarela dan tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronik atau lain-lain, data peribadi saya seperti yang dinyatakan dalam Perjanjian dan Lampiran ini dan apa-apa bahan geran Pelan oleh dan di antara, seperti mana yang terpakai, Majikan, Syarikat dan mana-mana Anak Syarikat yang lain atau Syarikat Sekutu kami atau mana-mana pihak ketiga yang diberi kuasa oleh yang sama untuk membantu dalam pelaksanaan, pentadbiran dan pengurusan penyertaan saya dalam Pelan. Sebelum ini, saya mungkin telah membekalkan Syarikat dan Majikan dengan, dan Syarikat dan Majikan mungkin memegang, maklumat peribadi tertentu tentang saya, termasuk, tetapi tidak terhad kepada, nama saya, alamat rumah dan nombor telefon, tarikh lahir, nombor insurans sosial atau nombor pengenalan lain, gaji, kewarganegaraan, jawatan, apa-apa saham atau jawatan pengarah yang dipegang dalam Syarikat, fakta dan syarat-syarat penyertaan saya dalam Pelan, butir-butir semua PSU atau apa-apa hak lain untuk Saham yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak hak ataupun yang belum dijelaskan bagi faedah saya ("Data"), untuk tujuan yang eksklusif bagi melaksanakan, mentadbir dan menguruskan Pelan. Saya juga memberi kuasa untuk membuat apa-apa pemindahan Data, sebagaimana yang diperlukan, kepada pembekal perkhidmatan pelan saham luar yang lain sebagaimana yang mungkin dipilih oleh Syarikat pada masa depan, yang membantu Syarikat dalam pelaksanaan, pentadbiran dan pengurusan Pelan dan/atau dengan sesiapa yang mendepositkan apa-apa saham yang diperolehi apabila PSU terletak hak. . Saya mengakui bahawa penerima-penerima ini mungkin berada di negara saya atau di tempat lain, dan bahawa negara penerima (contohnya, Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan perlindungan yang berbeza daripada negara saya, yang mungkin tidak boleh memberi tahap perlindungan yang sama kepada Data. Saya faham bahawa saya boleh meminta senarai nama dan alamat mana-mana penerima Data yang berpotensi dengan menghubungi wakil sumber manusia tempatan saya. Saya memberi kuasa kepada Syarikat, pembekal perkhidmatan pelan saham luar dan mana-mana penerima lain yang mungkin membantu Syarikat (masa sekarang atau pada masa depan) untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan. Saya faham bahawa Data akan dipegang hanya untuk tempoh yang diperlukan untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan. Saya faham bahawa saya boleh, pada bila-bila masa, melihat Data, meminta maklumat tambahan mengenai penyimpanan dan pemprosesan Data, meminta bahawa pindaan-pindaan dilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakil sumber manusia tempatan saya, di mana butir-butir hubungannya adalah Cheng Liang Heng, cl.heng@enersys.com.sg. Selanjutnya, saya memahami bahawa saya memberikan persetujuan di sini secara sukarela. Jika saya tidak bersetuju, atau jika saya kemudian membatalkan persetujuan saya, status pekerjaan atau perkhidmatan dan kerjaya saya dengan Majikan tidak akan terjejas; satunya akibat buruk jika saya tidak bersetuju atau menarik balik persetujuan saya adalah bahawa Syarikat tidak akan dapat memberikan PSU pada masa depan atau anugerah ekuiti lain kepada saya atau mentadbir atau mengekalkan anugerah tersebut. Oleh itu, saya faham bahawa keengganan atau penarikan balik persetujuan saya boleh menjejaskan keupayaan saya untuk mengambil bahagian dalam Pelan. Untuk maklumat lanjut mengenai akibat keengganan saya untuk memberikan keizinan atau penarikan balik keizinan, saya fahami bahawa saya boleh menghubungi wakil sumber manusia tempatan saya. |
ENERSYS | ||
By: | ||
Name: | David M. Shaffer | |
Title: | President & Chief Executive Officer | |
PARTICIPANT | ||
Name: | ||
Address: | ||
1. | Nature of Grant. In accepting the Award, the Participant acknowledges that: |
(a) | the Plan is established voluntarily by the Company, it is discretionary in nature and it may be modified, amended, suspended or terminated by the Company at any time, to the extent permitted by the Plan; |
(b) | the grant of the RSUs is voluntary and occasional and does not create any contractual or other right to receive future grants of RSUs, or benefits in lieu of RSUs, even if RSUs have been granted repeatedly in the past; |
(c) | all decisions with respect to future grants, if any, will be at the sole discretion of Company; |
(d) | the Participant is voluntarily participating in the Plan; |
(e) | the RSUs and the underlying shares of Common Stock subject to the RSUs are extraordinary items that do not constitute compensation of any kind for services of any kind rendered to the Company or any Subsidiary or Affiliate, and which is outside the scope of the Participant’s employment contract, if any; |
(f) | the RSUs and the underlying shares of Common Stock subject to the RSUs are not intended to replace any pension rights, if any, or compensation; |
(g) | the RSUs and the underlying shares of Common Stock subject to the RSUs, and the income and value of same, are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, dismissal, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Subsidiary or Affiliate; |
(h) | the grant of the RSUs and the Participant’s participation in the Plan will not be interpreted to form an employment contract or relationship with the Company or any Subsidiary or Affiliate; |
(i) | the future value of the underlying shares of Common Stock is unknown and cannot be predicted with certainty; |
(j) | if the Participant obtains shares of Common Stock upon settlement of the Participant’s RSUs, the value of those shares acquired may increase or decrease in value; |
(k) | in consideration of the grant of the RSUs, no claim or entitlement to compensation or damages shall arise from forfeiture of the RSUs resulting from termination of the Participant’s employment with the Company or any Subsidiary or Affiliate (for any reason whatsoever and whether or not in breach of local labor laws) and the Participant irrevocably releases the Company, the Subsidiaries and the Affiliates from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, the Participant will be deemed irrevocably to have waived the Participant’s entitlement to pursue such claim; |
(l) | in the event of termination of the Participant’s employment (whether or not in breach of local labor laws), the Participant’s right to vest in the RSUs under the Plan, if any, will terminate effective as of the date that the Participant is no longer actively employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law); the Compensation Committee shall have the exclusive discretion to determine when the Participant is no longer actively employed for purposes of the Participant’s Award; |
(m) | the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan, or the Participant’s acquisition or sale of Common Stock; |
(n) | the Participant is hereby advised to consult with the Participant’s personal tax, legal and financial advisors regarding participation in the Plan before taking any action related to the Plan; |
(o) | unless otherwise provided in the Plan or by the Company in its discretion, the RSUs and the benefits evidenced by this Agreement do not create any entitlement to have the RSUs or any such benefits transferred to, or assumed by, another company nor to be exchanged, cashed out or substituted for, in connection with any corporate transaction affecting the shares of the Company; and |
(p) | neither the Company, any Subsidiary nor any Affiliate of the Company shall be liable for any foreign exchange rate fluctuation between the Participant’s local currency and the United States Dollar that may affect the value of the RSUs or of any amounts due to the Participant pursuant to |
(a) | Regardless of any action the Company or the Subsidiary/Affiliate that employs the Participant (the “Employer”) takes with respect to any or all income tax, the Participant’s portion of social insurance, payroll tax, payment on account or other tax-related items related to the Participant’s participation in the Plan and legally applicable to the Participant (“Tax-Related Items”), the Participant acknowledges that the ultimate liability for all Tax-Related Items is and remains the Participant’s responsibility and may exceed the amount actually withheld by the Company or the Employer. |
(b) | The Participant further acknowledges that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the Award, including, but not limited to, the grant of the RSUs, the issuance of shares of Common Stock upon vesting/settlement of the RSUs, the subsequent sale of shares of Common Stock acquired pursuant to such issuance and the receipt of any dividends or dividend equivalents; and (2) do not commit to, and are under no obligation to, structure the terms of the grant or any aspect of the RSUs to reduce or eliminate the Participant’s liability for Tax-Related Items or achieve any particular tax result. |
(c) | Further, if the Participant becomes subject to tax in more than one jurisdiction between the Date of Grant and the date of any relevant taxable event, the Participant acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account for Tax-Related Items in more than one jurisdiction. |
(d) | The Participant authorizes the Company and/or the Employer, or their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items by one or a combination of the following: (1) withholding in shares of Common Stock to be issued or cash distributed upon vesting/settlement of the RSUs; (2) withholding from the Participant’s wages or other cash compensation paid to the Participant by the Company and/or the Employer; (3) withholding from the proceeds of the sale of shares of Common Stock acquired upon vesting/settlement of the RSUs either through a voluntary sale or through a mandatory sale arranged by the Company (on the Participant’s behalf pursuant to this authorization). |
(e) | To avoid negative accounting treatment, the Company may withhold or account for Tax-Related Items by considering applicable minimum statutory withholding amounts or other applicable withholding rates. If the obligation for Tax-Related Items is satisfied by withholding in shares of Common Stock, for tax purposes, |
(f) | The Participant shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as a result of the Participant’s participation in the Plan that cannot be satisfied by the means previously described. The Company may refuse to issue or deliver the shares of Common Stock or the proceeds of the sale of shares of Common Stock, if the Participant fails to comply with this obligation. |
Section III. | France, Germany, Italy, Netherlands, Poland and United Kingdom |
I hereby explicitly, voluntarily and unambiguously consent to the collection, use and transfer, in electronic or other form, of my personal data as described in this Agreement and Appendix and any other Plan grant materials by and among, as applicable, the Employer, the Company and any of its other Subsidiaries or Affiliates or any third parties authorized by the same in assisting in the implementation, administration and management of my participation in the Plan. I may have previously provided the Company and the Employer with, and the Company and the Employer may hold, certain personal information about me, including, but not limited to, my name, home address and telephone number, date of birth, social insurance number or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company, the fact and conditions of my participation in the Plan, details of all RSUs or any other entitlement to Shares awarded, cancelled, exercised, vested, unvested or outstanding in my favor (“Data”), for the exclusive purpose of implementing, administering and managing the Plan. I also authorize any transfer of Data, as may be required, to any external stock plan service provider as may be selected by the Company in the future, which is assisting the Company with the implementation, administration and management of the Plan and/or with whom any shares acquired upon vesting of RSUs are deposited. I acknowledge that these recipients may be located in my country or elsewhere, and that the recipient’s country (e.g., the United States) may have different data privacy laws and protections to my country, which may not give the same level of protection to Data. I understand that I may request a list with the names and addresses of any potential recipients of Data by contacting my local human resources representative. I authorize the Company, the external stock plan service provider and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing my participation in the Plan to receive, possess, use, retain and transfer Data, in electronic or other form, for the sole purpose of implementing, administering and managing my participation in the Plan. I understand that Data will be held only as long as is necessary to implement, administer and manage my participation in the Plan. I understand that I may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case, without cost, by contacting in writing my local human resources representative, whose contact details are Cheng Liang Heng, cl.heng@enersys.com.sg, Further, I understand that I am providing the consents herein on a purely voluntary basis. If I do not consent, or if I later seek to revoke my consent, my employment status or service and career with the Employer will not be adversely affected; the only adverse consequence of refusing or withdrawing my consent is that the Company would not be able to grant future RSUs or other equity awards to me or administer or maintain such awards. Therefore, I understand that refusing or withdrawing my consent may affect my ability to participate in the Plan. For more information on the consequences of my refusal to consent or withdrawal of consent, I understand that I may contact my local human resources representative. | Saya dengan ini secara eksplicit, secara sukarela dan tanpa sebarang keraguan mengizinkan pengumpulan, penggunaan dan pemindahan, dalam bentuk elektronik atau lain-lain, data peribadi saya seperti yang dinyatakan dalam Perjanjian dan Lampiran ini dan apa-apa bahan geran Pelan oleh dan di antara, seperti mana yang terpakai, Majikan, Syarikat dan mana-mana Anak Syarikat yang lain atau Syarikat Sekutu kami atau mana-mana pihak ketiga yang diberi kuasa oleh yang sama untuk membantu dalam pelaksanaan, pentadbiran dan pengurusan penyertaan saya dalam Pelan. Sebelum ini, saya mungkin telah membekalkan Syarikat dan Majikan dengan, dan Syarikat dan Majikan mungkin memegang, maklumat peribadi tertentu tentang saya, termasuk, tetapi tidak terhad kepada, nama saya, alamat rumah dan nombor telefon, tarikh lahir, nombor insurans sosial atau nombor pengenalan lain, gaji, kewarganegaraan, jawatan, apa-apa saham atau jawatan pengarah yang dipegang dalam Syarikat, fakta dan syarat-syarat penyertaan saya dalam Pelan, butir-butir semua RSU atau apa-apa hak lain untuk Saham yang dianugerahkan, dibatalkan, dilaksanakan, terletak hak, tidak diletak hak ataupun yang belum dijelaskan bagi faedah saya ("Data"), untuk tujuan yang eksklusif bagi melaksanakan, mentadbir dan menguruskan Pelan. Saya juga memberi kuasa untuk membuat apa-apa pemindahan Data, sebagaimana yang diperlukan, kepada pembekal perkhidmatan pelan saham luar yang lain sebagaimana yang mungkin dipilih oleh Syarikat pada masa depan, yang membantu Syarikat dalam pelaksanaan, pentadbiran dan pengurusan Pelan dan/atau dengan sesiapa yang mendepositkan apa-apa saham yang diperolehi apabila RSU terletak hak. . Saya mengakui bahawa penerima-penerima ini mungkin berada di negara saya atau di tempat lain, dan bahawa negara penerima (contohnya, Amerika Syarikat) mungkin mempunyai undang-undang privasi data dan perlindungan yang berbeza daripada negara saya, yang mungkin tidak boleh memberi tahap perlindungan yang sama kepada Data. Saya faham bahawa saya boleh meminta senarai nama dan alamat mana-mana penerima Data yang berpotensi dengan menghubungi wakil sumber manusia tempatan saya. Saya memberi kuasa kepada Syarikat, pembekal perkhidmatan pelan saham luar dan mana-mana penerima lain yang mungkin membantu Syarikat (masa sekarang atau pada masa depan) untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan untuk menerima, memiliki, menggunakan, mengekalkan dan memindahkan Data, dalam bentuk elektronik atau lain-lain, semata-mata dengan tujuan untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan. Saya faham bahawa Data akan dipegang hanya untuk tempoh yang diperlukan untuk melaksanakan, mentadbir dan menguruskan penyertaan saya dalam Pelan. Saya faham bahawa saya boleh, pada bila-bila masa, melihat Data, meminta maklumat tambahan mengenai penyimpanan dan pemprosesan Data, meminta bahawa pindaan-pindaan dilaksanakan ke atas Data atau menolak atau menarik balik persetujuan dalam ini, dalam mana-mana kes, tanpa kos, dengan menghubungi secara bertulis wakil sumber manusia tempatan saya, di mana butir-butir hubungannya adalah Cheng Liang Heng, cl.heng@enersys.com.sg. Selanjutnya, saya memahami bahawa saya memberikan persetujuan di sini secara sukarela. Jika saya tidak bersetuju, atau jika saya kemudian membatalkan persetujuan saya, status pekerjaan atau perkhidmatan dan kerjaya saya dengan Majikan tidak akan terjejas; satunya akibat buruk jika saya tidak bersetuju atau menarik balik persetujuan saya adalah bahawa Syarikat tidak akan dapat memberikan RSU pada masa depan atau anugerah ekuiti lain kepada saya atau mentadbir atau mengekalkan anugerah tersebut. Oleh itu, saya faham bahawa keengganan atau penarikan balik persetujuan saya boleh menjejaskan keupayaan saya untuk mengambil bahagian dalam Pelan. Untuk maklumat lanjut mengenai akibat keengganan saya untuk memberikan keizinan atau penarikan balik keizinan, saya fahami bahawa saya boleh menghubungi wakil sumber manusia tempatan saya. |
(i) | the Participant’s employment terminates due to death or Permanent Disability, or |
(ii) | the Participant’s employment terminates within two years after a Change in Control without Cause or for Good Reason. |
Number of Options: | _______ Option Price: $ _____ |
2. | Payment of Taxes. The following provisions supplement Section 8 of the Agreement entitled “Taxes.” |
3. | Insider Trading Restrictions/Market Abuse Laws. The Participant acknowledges that, depending on the Participant’s country of residence (and country of employment, if different), the Participant may be subject to insider trading restrictions and/or market abuse laws, which may affect the Participant’s ability to acquire or sell shares of Common Stock or rights to shares of Common Stock (e.g., Options) under the Plan during such times as the Participant is considered to have “inside information” (as defined by the laws in the applicable country). The insider trading and/or market abuse laws may be different from any Company Insider Trading Policy. The Participant personally is responsible for ensuring compliance with any applicable restrictions and should consult with the Participant’s personal legal advisor for additional information about any applicable restrictions and the Participant’s obligations. |
4. | Foreign Asset/Account and Exchange Control Reporting. The Participant’s country of residence (and country of employment, if different) may have certain exchange controls and foreign asset and/or account reporting requirements which may affect the Participant’s ability to purchase or hold shares of Common Stock under the Plan or receive cash from the Participant’s participation in the Plan (including from any dividends received or sale proceeds arising from the sale of shares of Common Stock) in a brokerage or bank account outside the Participant’s country of residence (and country of employment, if different). The Participant may be required to report such accounts, assets or transactions to the tax or other authorities in the Participant’s country of residence (and country of employment, if different). Further, the Participant may be required to repatriate the shares of Common Stock or proceeds acquired as a result of participating in the Plan to the Participant’s country of residence (and country of employment, if different) through a designated bank/broker and/or within a certain time. The Participant personally is responsible for ensuring compliance with any applicable reporting obligations and should consult with the Participant’s personal legal advisor for additional information about such obligations. |
• | Section 4 (Terms and Conditions) |
• | Section 5 (Noncompetition) |
• | Section 6 (Wrongful Solicitation) |
• | Section 7 (Confidentiality; Specific Performance) |
• | Section 17 (Investment Representation) |
• | Section 18 (Entire Agreement; Language; Governing Law) |
• | Section 22(e) (Clawback Policy) |
• | Appendix A, Section I (Nature of Grant) |
• | Appendix A, Section I (Payment of Taxes) |
• | Appendix A, Section III (Data Privacy Notice) |
1. | I have reviewed this quarterly report on Form 10-Q of EnerSys; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By | /s/ David M. Shaffer | |
David M. Shaffer | ||
Chief Executive Officer | ||
1. | I have reviewed this quarterly report on Form 10-Q of EnerSys; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By | /s/ Michael J. Schmidtlein | |
Michael J. Schmidtlein | ||
Chief Financial Officer | ||
By | /s/ David M. Shaffer | |
David M. Shaffer | ||
Chief Executive Officer | ||
By | /s/ Michael J. Schmidtlein | |
Michael J. Schmidtlein | ||
Chief Financial Officer | ||
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Mar. 31, 2019 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Accounts receivable, allowance for doubtful accounts | $ 12,477 | $ 10,813 |
| Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
| Preferred stock, shares issued (in shares) | 0 | 0 |
| Preferred stock, shares outstanding (in shares) | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Common stock, shares authorized (in shares) | 135,000,000 | 135,000,000 |
| Common stock, shares issued (in shares) | 54,848,523 | |
| Common stock, shares outstanding (in shares) | 42,478,439 | 42,620,750 |
| Treasury stock (in shares) | 12,601,907 | 12,227,773 |
Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Statement of Comprehensive Income [Abstract] | ||
| Net earnings | $ 48,636 | $ 46,020 |
| Other comprehensive (loss) income: | ||
| Net unrealized (loss) gain on derivative instruments, net of tax | (2,329) | 1,005 |
| Pension funded status adjustment, net of tax | 237 | 300 |
| Foreign currency translation adjustment | (3,211) | (72,163) |
| Total other comprehensive loss, net of tax | (5,303) | (70,858) |
| Total comprehensive income (loss) | 43,333 | (24,838) |
| Comprehensive loss attributable to noncontrolling interests | (83) | (339) |
| Comprehensive income (loss) attributable to EnerSys stockholders | $ 43,416 | $ (24,499) |
Basis of Presentation |
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| Accounting Policies [Abstract] | |||||||||||||||||||||
| Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments except those otherwise described herein) considered necessary for a fair presentation have been included, unless otherwise disclosed. Operating results for the three months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020. The Consolidated Condensed Balance Sheet at March 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s 2019 on Form 10-K (SEC File No. 001-32253), which was filed on May 29, 2019 (the “2019 Annual Report”). EnerSys (the “Company,”) reports interim financial information for 13-week periods, except for the first quarter, which always begins on April 1, and the fourth quarter, which always ends on March 31. The four quarters in fiscal 2020 end on June 30, 2019, September 29, 2019, December 29, 2019, and March 31, 2020, respectively. The four quarters in fiscal 2019 ended on July 1, 2018, September 30, 2018, December 30, 2018, and March 31, 2019, respectively. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. All intercompany transactions and balances have been eliminated in consolidation. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). This update requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Effective April 1, 2019, the Company adopted the new standard under the modified retrospective approach, which resulted in no adjustment to the April 1, 2019 beginning Retained Earnings. There are optional practical expedients and policy elections made available to simplify the transition to the new standard. The Company has elected the following:
Upon adoption, the Company recorded Right-of-use (“ROU”) assets and lease liabilities of approximately $84,878 and $87,248, respectively. In addition, capital lease assets and liabilities are now classified as finance lease right-of-use assets and liabilities. The difference between the operating lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. Apart from the aforementioned changes, the adoption of this standard did not have a significant impact on the Company's operating results, financial position or cash flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note 3, Leases for additional information. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815)”: Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The Company adopted the standard effective April 1, 2019 and the adoption did not have any impact on the Company's operating results, financial position or cash flows. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The new standard will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statements users. However, because the amendment only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The Company adopted this standard effective April 1, 2019 with the election not to reclassify $478 of stranded tax effects, primarily related to the Company's pension plans, from accumulated other comprehensive income (“AOCI”) to retained earnings, as the amount was not material. Accounting Pronouncements Issued But Not Adopted as of June 30, 2019 In June 2016, the FASB, issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)”: Measurement of Credit Losses on Financial Instruments, which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In contrast to current guidance, which considers current information and events and utilizes a probable threshold, (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. The Company is currently assessing the potential impact that the adoption will have on its consolidated financial statements.
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Revenue Recognition |
3 Months Ended |
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Jun. 30, 2019 | |
| Revenue from Contract with Customer [Abstract] | |
| Revenue Recognition | Revenue Recognition The Company adopted ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” on April 1, 2018 using the modified retrospective transition method. There was no cumulative effect of adopting the standard at the date of initial application in retained earnings. The Company's revenues by reportable segments are presented in Note 17. Service revenues related to the work performed for the Company’s customers by its maintenance technicians generally represent a separate and distinct performance obligation. Control for these services passes to the customer as the services are performed. Service revenues for the first quarter of fiscal 2020 and fiscal 2019 amounted to $60,718 and $35,482, respectively. A small portion of the Company's customer arrangements oblige the Company to create customized products for its customers that require the bundling of both products and services into a single performance obligation because the individual products and services that are required to fulfill the customer requirements do not meet the definition for a distinct performance obligation. These customized products generally have no alternative use to the Company and the terms and conditions of these arrangements give the Company the enforceable right to payment for performance completed to date, including a reasonable profit margin. For these arrangements, control transfers over time and the Company measures progress towards completion by selecting the input or output method that best depicts the transfer of control of the underlying goods and services to the customer for each respective arrangement. Methods used by the Company to measure progress toward completion include labor hours, costs incurred and units of production. Revenues recognized over time for the first quarter of fiscal 2020 and fiscal 2019 amounted to $41,495 and $18,404, respectively. On June 30, 2019, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $64,647, of which, the Company estimates that approximately $50,030 will be recognized as revenue in fiscal 2020, $14,033 in fiscal 2021, $390 in fiscal 2022, $16 in fiscal 2023 and $178 in fiscal 2024. Any payments that are received from a customer in advance, prior to the satisfaction of a related performance obligation and billings in excess of revenue recognized, are deferred and treated as a contract liability. Advance payments and billings in excess of revenue recognized are classified as current or non-current based on the timing of when recognition of revenue is expected. As of June 30, 2019, the current and non-current portion of contract liabilities were $14,289 and $6,821, respectively. As of March 31, 2019, the current and non-current portion of contract liabilities were $15,162 and $6,360, respectively. Revenues recognized during the first quarter of fiscal 2020 and fiscal 2019, that were included in the contract liability at the beginning of the quarter, amounted to $4,467 and $1,936, respectively. Amounts representing work completed and not billed to customers represent contract assets and were $42,520 and $38,778 as of June 30, 2019 and March 31, 2019, respectively. The Company uses historic customer product return data as a basis of estimation for customer returns and records the reduction of sales at the time revenue is recognized. At June 30, 2019, the right of return asset related to the value of inventory anticipated to be returned from customers was $2,667 and refund liability representing amounts estimated to be refunded to customers was $5,183.
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Leases |
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| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset. Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments. Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The following table presents lease assets and liabilities and their balance sheet classification:
The components of lease expense for the quarter ended June 30, 2019 were as follows:
The following table presents the weighted average lease term and discount rates for our leases:
The following table presents future payments due under leases reconciled to lease liabilities:
The following tables present supplemental disclosures of cash flow information related to leases:
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| Leases | Leases The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years. At contract inception, the Company reviews the terms of the arrangement to determine if the contract is or contains a lease. Guidance in Topic 842 is used to evaluate whether the contract has an identified asset; if the Company has the right to obtain substantially all economic benefits from the asset; and if it has the right to direct the use of the underlying asset. When determining if a contract has an identified asset, the Company considers both explicit and implicit assets, and whether the supplier has the right to substitute the asset. When determining if the Company has the right to obtain substantially all economic benefits from the asset, the Company considers the primary outputs of the identified asset throughout the period of use and determines if it receives greater than 90% of those benefits. When determining if it has the right to direct the use of an underlying asset, the Company considers if it has the right to direct how and for what purpose the asset is used throughout the period of use and if it controls the decision-making rights over the asset. Lease terms may include options to extend or terminate the lease. The Company exercises its judgment to determine the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that the Company will exercise those options. The Company has elected to include both lease and non-lease components in the determination of lease payments for all asset classes. Payments made to a lessor for items such as taxes, insurance, common area maintenance, or other costs commonly referred to as executory costs, are also included in lease payments if they are fixed. The fixed portion of these payments are included in the calculation of the lease liability, while any variable portion would be recognized as variable lease expenses, when incurred. Variable payments made to third parties for these, or similar costs, such as utilities, are not included in the calculation of lease payments. Both finance and operating leases are reflected as liabilities on the commencement date of the lease based on the present value of the lease payments to be made over the lease term. As most of the leases do not provide an implicit rate, the Company has exercised judgment in electing the incremental borrowing rate based on the information available when the lease commences to determine the present value of future payments. Right-of-use assets are valued at the initial measurement of the lease liability, plus any initial direct costs or rent prepayments and reduced by any lease incentives and any deferred lease payments. Operating lease expense is recognized on a straight-line basis over the lease term. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset, and interest expense, which is recognized following an effective interest rate method. Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred. The following table presents lease assets and liabilities and their balance sheet classification:
The components of lease expense for the quarter ended June 30, 2019 were as follows:
The following table presents the weighted average lease term and discount rates for our leases:
The following table presents future payments due under leases reconciled to lease liabilities:
The following tables present supplemental disclosures of cash flow information related to leases:
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Acquisitions |
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| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | Acquisition On December 7, 2018, the Company completed the acquisition of all of the issued and outstanding common stock of Alpha Technologies Services, Inc. (“ATS”) and Alpha Technologies Ltd. (“ATL”), resulting in ATS and ATL becoming wholly-owned subsidiaries of the Company (the “share purchase”). Additionally, the Company acquired substantially all of the assets of Alpha Technologies Inc. and certain assets of Altair Advanced Industries, Inc. and other affiliates of ATS and ATL (all such sellers, together with ATS and ATL, “Alpha”), in each case in accordance with the terms and conditions of certain restructuring agreements (collectively, the “asset acquisition” and together with the share purchase, the “acquisition”). Based in Bellingham, Washington, Alpha is a global industry leader in comprehensive commercial-grade energy solutions for broadband, telecom, renewable, industrial and traffic customers around the world. The initial purchase consideration for the acquisition was $750,000, of which $650,000 was paid in cash and the balance was settled by issuing 1,177,630 shares of EnerSys common stock. These shares were issued out of the Company's treasury stock and were valued at $84.92 per share, which was based on the thirty-day volume weighted average stock price of the Company’s common stock at closing, in accordance with the purchase agreement. The 1,177,630 shares had a closing date fair value of $93,268, based upon the December 7, 2018, closing date spot rate of $79.20. The total purchase consideration, consisting of cash paid of $650,000, shares valued at $93,268 and an adjustment for working capital (due from seller of $766) was $742,502. The Company funded the cash portion of the acquisition with borrowings from the Amended Credit Facility as defined in Note 12. See Note 12 for additional information. The acquisition expands the Company's footprint in broadband and telecom markets. The goodwill recognized in connection with this transaction reflects the benefits the Company expects to realize from being able to provide a one-stop, fully integrated power solutions offering to its customers, as well as the benefit of cost synergies from alignment of the Alpha group within its own organizational structure. The results of operations of Alpha have been included in the Company’s Americas segment. The following table represents the fair values assigned to the assets acquired and liabilities assumed and resulting goodwill. The amounts recognized will be finalized as the information necessary to complete the analysis is obtained, but no later than one year from the acquisition date (“the measurement period”). The acquired assets and assumed liabilities include the following:
The following table summarizes the estimated fair value of Alpha's identifiable intangible assets and the initial assessment of their respective estimated lives:
The Company recorded the acquisition using the acquisition method of accounting and recognized the assets acquired and liabilities assumed at their fair values as of the date of the acquisition. The excess of the purchase price over the net tangible and intangible assets is recorded to goodwill. Estimated goodwill deductible for tax purposes is $42,262. The measurement of the fair value of assets acquired and liabilities assumed is substantially complete. The Company continues to gather necessary information to finalize the accounting for income taxes associated with the acquisition, and as such the Company could record additional adjustments to the provisional amount recognized as this additional information is obtained. The following unaudited summary information is presented on a consolidated pro forma basis as if the acquisition had occurred on April 1, 2017:
The pro forma amounts include additional interest expense on the debt issued to finance the purchases, amortization and depreciation expense based on the estimated fair value and useful lives of intangible assets and plant assets, and related tax effects. The pro forma results are not necessarily indicative of the combined results had the Alpha acquisition been completed on April 1, 2017, nor are they indicative of future combined results. The remeasurement of Alpha's deferred taxes due to the Tax Act are being excluded in arriving at these pro forma results. Other Intangible Assets Information regarding the Company’s other intangible assets are as follows:
The Company’s amortization expense related to finite-lived intangible assets was $7,316 and $2,069, for the first quarter of fiscal 2020 and fiscal 2019, respectively. The expected amortization expense based on the finite-lived intangible assets as of June 30, 2019, is $22,175 for the remainder of fiscal 2020, $29,237 in fiscal 2021, $28,993 in fiscal 2022, $27,694 in fiscal 2023 and $24,287 in fiscal 2024.
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Inventories |
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| Inventories | Inventories Inventories, net consist of:
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Fair Value of Financial Instruments |
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| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Financial Instruments | Fair Value of Financial Instruments Recurring Fair Value Measurements The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2019 and March 31, 2019, and the basis for that measurement:
The fair values of lead forward contracts are calculated using observable prices for lead as quoted on the London Metal Exchange (“LME”) and, therefore, were classified as Level 2 within the fair value hierarchy, as described in Note 1, Summary of Significant Accounting Policies to the Company's consolidated financial statements included in its 2019 Annual Report. The fair values for foreign currency forward contracts are based upon current quoted market prices and are classified as Level 2 based on the nature of the underlying market in which these derivatives are traded. Financial Instruments The fair values of the Company’s cash and cash equivalents approximate carrying value due to their short maturities. The fair value of the Company’s short-term debt and borrowings under the Amended Credit Facility (as defined in Note 12), approximate their respective carrying value, as they are variable rate debt and the terms are comparable to market terms as of the balance sheet dates and are classified as Level 2. The Company's 5.00% Senior Notes due 2023 (the “Notes”), with an original face value of $300,000, were issued in April 2015. The fair value of the Notes represent the trading values based upon quoted market prices and are classified as Level 2. The Notes were trading at approximately 102% and 99% of face value on June 30, 2019 and March 31, 2019, respectively. The carrying amounts and estimated fair values of the Company’s derivatives and Notes at June 30, 2019 and March 31, 2019 were as follows:
(2) The fair value amount of the Notes at June 30, 2019 and March 31, 2019 represent the trading value of the instruments.
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Derivative Financial Instruments |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Financial Instruments | Derivative Financial Instruments The Company utilizes derivative instruments to reduce its exposure to fluctuations in commodity prices and foreign exchange rates under established procedures and controls. The Company does not enter into derivative contracts for speculative purposes. The Company’s agreements are with creditworthy financial institutions and the Company anticipates performance by counterparties to these contracts and therefore no material loss is expected. Derivatives in Cash Flow Hedging Relationships Lead Forward Contracts The Company enters into lead forward contracts to fix the price for a portion of its lead purchases. Management considers the lead forward contracts to be effective against changes in the cash flows of the underlying lead purchases. The vast majority of such contracts are for a period not extending beyond one year. At June 30, 2019 and March 31, 2019, the Company has hedged the price to purchase approximately 38.0 million pounds and 42.0 million pounds of lead, respectively, for a total purchase price of $33,012 and $39,218, respectively. Foreign Currency Forward Contracts The Company uses foreign currency forward contracts and options to hedge a portion of the Company’s foreign currency exposures for lead, as well as other foreign currency exposures so that gains and losses on these contracts offset changes in the underlying foreign currency denominated exposures. The vast majority of such contracts are for a period not extending beyond one year. As of June 30, 2019 and March 31, 2019, the Company had entered into a total of $29,891 and $42,318, respectively, of such contracts. In the coming twelve months, the Company anticipates that $3,097 of pretax loss relating to lead and foreign currency forward contracts will be reclassified from AOCI as part of cost of goods sold. This amount represents the current net unrealized impact of hedging lead and foreign exchange rates, which will change as market rates change in the future, and will ultimately be realized in the Consolidated Condensed Statements of Income as an offset to the corresponding actual changes in lead costs to be realized in connection with the variable lead cost and foreign exchange rates being hedged. Derivatives not Designated in Hedging Relationships Foreign Currency Forward Contracts The Company also enters into foreign currency forward contracts to economically hedge foreign currency fluctuations on intercompany loans and foreign currency denominated receivables and payables. These are not designated as hedging instruments and changes in fair value of these instruments are recorded directly in the Consolidated Condensed Statements of Income. As of June 30, 2019 and March 31, 2019, the notional amount of these contracts was $21,339 and $22,201, respectively. Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Condensed Balance Sheets and derivative gains and losses in the Consolidated Condensed Statements of Income: Fair Value of Derivative Instruments June 30, 2019 and March 31, 2019
The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended June 30, 2019
The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 1, 2018
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Income Taxes |
3 Months Ended |
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Jun. 30, 2019 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company’s income tax provision consists of federal, state and foreign income taxes. The tax provision for the first quarter of fiscal 2020 and 2019 was based on the estimated effective tax rates applicable for the full years ending March 31, 2020 and March 31, 2019, respectively, after giving effect to items specifically related to the interim periods. The Company’s effective income tax rate with respect to any period may be volatile based on the mix of income in the tax jurisdictions in which the Company operates, change in tax laws and the amount of the Company's consolidated income before taxes. On December 22, 2017 the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. In fiscal 2019, the Company completed its accounting for the tax effects of enactment of the Tax Act and recognized a one-time transition tax of $84,017, inclusive of uncertain tax positions. On June 14, 2019 final regulations were issued for items relating to the Tax Act. As a result, in the first quarter of fiscal 2020, the Company recognized the uncertain tax position related to the one-time transition tax liability of $11,462. This did not result in a change to the transition tax liability of $84,017, previously recorded in fiscal 2019. The consolidated effective income tax rates for the first quarter of fiscal 2020 and 2019 were 17.0% and 19.7%, respectively. The rate decrease in the first quarter of fiscal 2020 compared to the first quarter of fiscal 2019 is primarily due to changes in the mix of earnings among tax jurisdictions. Foreign income as a percentage of worldwide income is estimated to be 64% for fiscal 2020 compared to 66% for fiscal 2019. The foreign effective income tax rates for the first quarter of fiscal 2020 and 2019 were 11.5% and 11.8%, respectively. The rate decrease compared to the prior year period is primarily due to changes in the mix of earnings among tax jurisdictions. Income from the Company's Swiss subsidiary comprised a substantial portion of the Company's overall foreign mix of income and was taxed at an effective income tax rate of approximately 6% in both the current and prior year quarter of fiscal 2020 and fiscal 2019.
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Warranty |
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Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Warranty | Warranty The Company provides for estimated product warranty expenses when the related products are sold, with related liabilities included within accrued expenses and other liabilities. As warranty estimates are forecasts that are based on the best available information, primarily historical claims experience, claims costs may ultimately differ from amounts provided. An analysis of changes in the liability for product warranties is as follows:
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Commitments, Contingencies and Litigation |
3 Months Ended |
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Jun. 30, 2019 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments, Contingencies and Litigation | Commitments, Contingencies and Litigation Litigation and Other Legal Matters In the ordinary course of business, the Company and its subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings are generally based on alleged violations of environmental, anticompetition, employment, contract and other laws. In some of these actions and proceedings, claims for substantial monetary damages are asserted against the Company and its subsidiaries. In the ordinary course of business, the Company and its subsidiaries are also subject to regulatory and governmental examinations, information gathering requests, inquiries, investigations, and threatened legal actions and proceedings. In connection with formal and informal inquiries by federal, state, local and foreign agencies, the Company and its subsidiaries receive numerous requests, subpoenas and orders for documents, testimony and information in connection with various aspects of their activities. European Competition Investigations Certain of the Company’s European subsidiaries had received subpoenas and requests for documents and, in some cases, interviews from, and have had on-site inspections conducted by, the competition authorities of Belgium, Germany and the Netherlands relating to conduct and anticompetitive practices of certain industrial battery participants. The Company settled the Belgian regulatory proceeding in February 2016 by acknowledging certain anticompetitive practices and conduct and agreeing to pay a fine of $1,962, which was paid in March 2016. During the first quarter of fiscal 2019, the Company paid $1,272 towards certain aspects of this matter, which are under appeal. As of June 30, 2019 and March 31, 2019, the Company did not have a reserve balance. In June 2017, the Company settled a portion of its previously disclosed proceeding involving the German competition authority relating to conduct involving the Company's motive power battery business and agreed to pay a fine of $14,811, which was paid in July 2017. As of June 30, 2019 and March 31, 2019, the Company did not have a reserve balance relating to this matter. Also, in June 2017, the German competition authority issued a fining decision related to the Company's reserve power battery business, which constituted the remaining portion of the previously disclosed German proceeding. The Company appealed this decision. In March 2019, the Company settled this matter by agreeing to pay $7,258, which was paid in April 2019. As of June 30, 2019 and March 31, 2019, the Company had a reserve balance of $0 and $7,258, respectively. The foregoing estimate of losses is based upon currently available information for these proceedings. However, the precise scope, timing and time period at issue, as well as the final outcome of the investigations or customer claims, remain uncertain. Accordingly, the Company’s estimate may change from time to time, and actual losses could vary. Environmental Issues As a result of its operations, the Company is subject to various federal, state, and local, as well as international environmental laws and regulations and is exposed to the costs and risks of registering, handling, processing, storing, transporting, and disposing of hazardous substances, especially lead and acid. The Company’s operations are also subject to federal, state, local and international occupational safety and health regulations, including laws and regulations relating to exposure to lead in the workplace. The Company is responsible for certain cleanup obligations at the former Yuasa battery facility in Sumter, South Carolina, that predates its ownership of this facility. This manufacturing facility was closed in 2001 and the Company established a reserve for this facility, which was $1,060 and $1,081 as of June 30, 2019 and March 31, 2019, respectively. Based on current information, the Company’s management believes this reserve is adequate to satisfy the Company’s environmental liabilities at this facility. This facility is separate from the Company’s current metal fabrication facility in Sumter. Lead and Foreign Currency Forward Contracts |
Restructuring Plans |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring Plans | Restructuring Plans During fiscal 2018, the Company announced restructuring programs to improve efficiencies primarily related to supply chain and general operations in EMEA. The Company estimates that the total charges for these actions will amount to approximately $7,400, primarily from cash charges for employee severance-related payments and other charges. The Company estimates that these actions will result in the reduction of approximately 80 employees upon completion. During fiscal 2018, the Company recorded non-cash restructuring charges of $69 and cash charges of $2,260 and an additional $3,104 during fiscal 2019. The Company incurred $1,350 in costs against the accrual in fiscal 2018 and an additional $2,844 in fiscal 2019. During the first quarter of fiscal 2020, the Company recorded restructuring charges of $14 and incurred $189 in costs against the accrual. As of June 30, 2019, the reserve balance associated with these actions is $894. The Company expects to be committed to an additional $2,000 in restructuring charges related to this action, which it expects to complete in fiscal 2021. During fiscal 2019, the Company announced restructuring programs to improve efficiencies of its operations in EMEA. The Company estimates that the total charges for these actions will amount to approximately $2,500, from charges primarily for employee severance-related payments to approximately 35 employees. During fiscal 2019, the Company recorded restructuring charges of $347 and incurred $83 in costs against the accrual. During the first quarter of fiscal 2020, the Company recorded restructuring charges of $557 and incurred $379 in costs against the accrual. As of June 30, 2019, the reserve balance associated with these actions is $439. The Company expects to complete these actions in fiscal 2021. During fiscal 2019, the Company announced restructuring programs to improve efficiencies of its operations in the Americas. The Company estimates that the total charges for these actions will amount to approximately $4,100, from cash and non-cash charges primarily for employee severance-related payments to approximately 100 employees. During fiscal 2019, the Company recorded restructuring charges of $1,970, non-cash charges of $2,095 and incurred $1,480 in costs against the accrual. During the first quarter of fiscal 2020, the Company incurred $340 in costs against the accrual. As of June 30, 2019, the reserve balance associated with this action is $147. The Company expects to complete these actions in fiscal 2020. During fiscal 2019, the Company announced a restructuring program to improve efficiencies of its operations in the Asia and to convert its India operations from mainly reserve power production to motive power production. The Company estimates that the total charges for these actions will amount to approximately $5,300, from cash charges primarily for employee severance-related payments to approximately 150 employees and non-cash charges related to the write-off of fixed assets. During fiscal 2019, the Company recorded cash restructuring charges of $2,772 and non-cash charges of $771 and incurred $1,683 in costs against the accrual. During the first quarter of fiscal 2020, the Company recorded restructuring charges of $363 and incurred $979 in costs against the accrual. As of June 30, 2019, the reserve balance associated with this action is $521. The Company expects to complete this action in fiscal 2020. During fiscal 2020, the Company announced a restructuring program to improve efficiencies of its operations in the Americas. The Company estimates that the total charges for these actions will amount to approximately $900, from cash charges primarily for employee severance-related payments to approximately 50 employees. During the first quarter of fiscal 2020, the Company recorded restructuring charges of $585 and incurred $113 in costs against the accrual. As of June 30, 2019, the reserve balance associated with this action is $472. The Company expects to complete this action in fiscal 2020. A roll-forward of the restructuring reserve is as follows:
Other Exit Charges During fiscal 2019, the Company committed to a plan to close its facility in Targovishte, Bulgaria, which produced diesel-electric submarine batteries. Management determined that the future demand for batteries of diesel-electric submarines was not sufficient given the number of competitors in the market. Of the estimated total charges of $30,000 for all these actions, the Company had recorded charges amounting to $20,242 in fiscal 2019, relating to severance and inventory and fixed asset write-offs. The Company recorded an additional $672 relating to non-cash charges in the first quarter of fiscal 2020. During the first quarter of fiscal 2019, in an effort to improve profitability, the Company converted its India operations from mainly reserve power production to motive power production. As a result of the Company’s exit from reserve power, the Company recorded a non-cash write-off of reserve power inventories of $526, which was reported in cost of goods sold. In addition, the Company recorded a $547 write-off related to reserve power fixed assets in restructuring expenses.
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| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt | Debt The following summarizes the Company’s long-term debt as of June 30, 2019 and March 31, 2019:
5.00% Senior Notes The Notes bear interest at a rate of 5.00% per annum and have an original face value of $300,000. Interest is payable semiannually in arrears on April 30 and October 30 of each year and commenced on October 30, 2015. The Notes will mature on April 30, 2023, unless earlier redeemed or repurchased in full. The Notes are unsecured and unsubordinated obligations of the Company. The Notes are fully and unconditionally guaranteed (the “Guarantees”), jointly and severally, by certain of its subsidiaries that are guarantors (the “Guarantors”) under the Amended 2017 Credit Facility. The Guarantees are unsecured and unsubordinated obligations of the Guarantors. 2017 Credit Facility and Subsequent Amendment In fiscal 2018, the Company entered into a credit facility (the “2017 Credit Facility”). The 2017 Credit Facility scheduled to mature on September 30, 2022 comprised a $600,000 senior secured revolving credit facility (“2017 Revolver”) and a $150,000 senior secured term loan (“2017 Term Loan”). The Company utilized the borrowings from the 2017 Credit Facility to repay its pre-existing credit facility. In fiscal 2019, the Company amended the 2017 Credit Facility (as amended, the “Amended Credit Facility”) to fund the Alpha acquisition. The Amended Credit Facility consists of $449,105 senior secured term loans (the “Amended 2017 Term Loan”), including a CAD 133,050 ($99,105) term loan and a $700,000 senior secured revolving credit facility (the “Amended 2017 Revolver”). The amendment resulted in an increase of the 2017 Term Loan and the 2017 Revolver by $299,105 and $100,000, respectively. As of June 30, 2019, the Company had $249,000 outstanding under the Amended 2017 Revolver and $434,813 under the Amended 2017 Term Loan. Subsequent to the amendment, the quarterly installments payable on the Amended 2017 Term Loan are $5,645 beginning December 31, 2018, $8,468 beginning December 31, 2019 and $11,290 beginning December 31, 2020 with a final payment of $320,000 on September 30, 2022. The Amended Credit Facility may be increased by an aggregate amount of $325,000 in revolving commitments and / or one or more new tranches of term loans, under certain conditions. Both the Amended 2017 Revolver and the Amended 2017 Term Loan bear interest, at the Company's option, at a rate per annum equal to either (i) the London Interbank Offered Rate (“LIBOR”) or Canadian Dollar Offered Rate (“CDOR”) plus (i) LIBOR plus between 1.25% and 2.00% (currently 1.25% and based on the Company's consolidated net leverage ratio) or (ii) the U.S. Dollar Base Rate (which equals, for any day a fluctuating rate per annum equal to the highest of (a) the Federal Funds Effective Rate plus 0.50%, (b) Bank of America “Prime Rate” and (c) the Eurocurrency Base Rate plus 1%; provided that, if the Base Rate shall be less than zero, such rate shall be deemed zero) (iii) the CDOR Base Rate equal to the higher of (a) Bank of America “Prime Rate” and (b) average 30-day CDOR rate plus 0.50%. Obligations under the Amended Credit Facility are secured by substantially all of the Company’s existing and future acquired assets, including substantially all of the capital stock of the Company’s United States subsidiaries that are guarantors under the Credit Facility and up to 65% of the capital stock of certain of the Company’s foreign subsidiaries that are owned by the Company’s United States subsidiaries. The Amended Credit Facility allows for up to two temporary increases in the maximum leverage ratio from 3.50x to 4.00x for a four quarter period following an acquisition larger than $250,000. Effective December 7, 2018 through December 30, 2018, the maximum leverage ratio has been increased to 4.00x. The current portion of the Amended 2017 Term Loan of $31,049 is classified as long-term debt as the Company expects to refinance the future quarterly payments with revolver borrowings under the Amended Credit Facility. Short-Term Debt As of June 30, 2019 and March 31, 2019, the Company had $35,081 and $54,490, respectively, of short-term borrowings. The weighted average interest rate on these borrowings was approximately 3% and 4% at June 30, 2019 and March 31, 2019, respectively. Letters of Credit As of June 30, 2019 and March 31, 2019, the Company had standby letters of credit of $3,822 and $3,955, respectively. Debt Issuance Costs Amortization expense, relating to debt issuance costs, included in interest expense was $378 and $313, respectively, for the quarters ended June 30, 2019 and July 1, 2018. Debt issuance costs, net of accumulated amortization, totaled $5,181 and $5,559, respectively, at June 30, 2019 and March 31, 2019. Available Lines of Credit As of June 30, 2019 and March 31, 2019, the Company had available and undrawn, under all its lines of credit, $567,941 and $546,960, respectively, including $119,066 and $87,685, respectively, of uncommitted lines of credit as of June 30, 2019 and March 31, 2019.
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| Retirement Plans | Retirement Plans The following tables present the components of the Company’s net periodic benefit cost related to its defined benefit pension plans:
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Stock-Based Compensation |
3 Months Ended |
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Jun. 30, 2019 | |
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Stock-Based Compensation | Stock-Based Compensation As of June 30, 2019, the Company maintains the 2017 Equity Incentive Plan (“2017 EIP”). The 2017 EIP reserved 4,173,554 shares of common stock for the grant of various classes of nonqualified stock options, restricted stock units, market condition-based (“TSR”) and performance condition-based share units (“PSU”) and other forms of equity-based compensation. The Company recognized stock-based compensation expense associated with its equity incentive plans of $3,874 for the first quarter of fiscal 2020 and $4,341 for the first quarter of fiscal 2019. The Company recognizes compensation expense using the straight-line method over the vesting period of the awards. During the first quarter of fiscal 2020, the Company granted to non-employee directors 2,276 restricted stock units, pursuant to the 2017 EIP. The awards vest immediately upon the date of grant and are settled in shares of common stock, six months after termination of service as a director. Common stock activity during the first quarter of fiscal 2020 included the vesting of 154,836 restricted stock units, 171,920 TSRs and the exercise of 661 stock options. |
Stockholders' Equity and Noncontrolling Interests |
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| Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity and Noncontrolling Interests | Stockholders’ Equity and Noncontrolling Interests Common Stock The following demonstrates the change in the number of shares of common stock outstanding during the first quarter ended June 30, 2019:
Treasury Stock During the first quarter ended June 30, 2019, the Company purchased 376,343 shares for $23,029. At June 30, 2019 and March 31, 2019, the Company held 12,601,907 and 12,227,773 shares as treasury stock, respectively. Accumulated Other Comprehensive Income (“AOCI ”) The components of AOCI, net of tax, as of June 30, 2019 and March 31, 2019, are as follows:
The following table presents reclassifications from AOCI during the first quarter ended June 30, 2019:
The following table presents reclassifications from AOCI during the first quarter ended July 1, 2018:
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Earnings Per Share |
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| Earnings Per Share | Earnings Per Share The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding and the calculations of net earnings per common share attributable to EnerSys stockholders.
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Business Segments |
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| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Segments | Business Segments The Company's three reportable segments, based on lines of business, are as follows:
Summarized financial information related to the Company's reportable segments for the first quarter ended June 30, 2019 and July 1, 2018 is shown below:
(1) The Company does not allocate interest expense or other (income) expense to the reportable segments. (2) The Company does not allocate interest expense or other (income) expense to the reportable segments. Goodwill The changes in the carrying amount of goodwill by reportable segment during the first quarter of fiscal 2020 are as follows:
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Subsequent Events |
3 Months Ended |
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Jun. 30, 2019 | |
| Subsequent Events [Abstract] | |
| Subsequent Events | Subsequent Events On August 7, 2019, the Board of Directors approved a quarterly cash dividend of $0.175 per share of common stock to be paid on September 27, 2019, to stockholders of record as of September 13, 2019.
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Basis of Presentation (Policies) |
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| Accounting Policies [Abstract] | |||||||||||||||||||||
| Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments except those otherwise described herein) considered necessary for a fair presentation have been included, unless otherwise disclosed. Operating results for the three months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2020. The Consolidated Condensed Balance Sheet at March 31, 2019 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company’s 2019 on Form 10-K (SEC File No. 001-32253), which was filed on May 29, 2019 (the “2019 Annual Report”). EnerSys (the “Company,”) reports interim financial information for 13-week periods, except for the first quarter, which always begins on April 1, and the fourth quarter, which always ends on March 31. The four quarters in fiscal 2020 end on June 30, 2019, September 29, 2019, December 29, 2019, and March 31, 2020, respectively. The four quarters in fiscal 2019 ended on July 1, 2018, September 30, 2018, December 30, 2018, and March 31, 2019, respectively. The consolidated condensed financial statements include the accounts of the Company and its wholly-owned subsidiaries and any partially owned subsidiaries that the Company has the ability to control. All intercompany transactions and balances have been eliminated in consolidation. |
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| Recently Adopted Accounting Pronouncements and Accounting Pronouncements Issued But Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”, which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). This update requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. Effective April 1, 2019, the Company adopted the new standard under the modified retrospective approach, which resulted in no adjustment to the April 1, 2019 beginning Retained Earnings. There are optional practical expedients and policy elections made available to simplify the transition to the new standard. The Company has elected the following:
Upon adoption, the Company recorded Right-of-use (“ROU”) assets and lease liabilities of approximately $84,878 and $87,248, respectively. In addition, capital lease assets and liabilities are now classified as finance lease right-of-use assets and liabilities. The difference between the operating lease assets and lease liabilities primarily relates to unamortized lease incentives and deferred rent recorded in accordance with the previous lease guidance. Apart from the aforementioned changes, the adoption of this standard did not have a significant impact on the Company's operating results, financial position or cash flows. The discount rates used to calculate the ROU assets and lease liabilities as of the effective date were based on the remaining lease terms as of the effective date. See Note 3, Leases for additional information. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815)”: Targeted Improvements to Accounting for Hedging Activities, which amends and simplifies existing guidance in order to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The Company adopted the standard effective April 1, 2019 and the adoption did not have any impact on the Company's operating results, financial position or cash flows. In February 2018, the FASB issued ASU 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220)". The new standard will allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“Tax Act”). The amendments eliminate the stranded tax effects resulting from the Tax Act and will improve the usefulness of information reported to financial statements users. However, because the amendment only relates to the reclassification of the income tax effects of the Tax Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The Company adopted this standard effective April 1, 2019 with the election not to reclassify $478 of stranded tax effects, primarily related to the Company's pension plans, from accumulated other comprehensive income (“AOCI”) to retained earnings, as the amount was not material. Accounting Pronouncements Issued But Not Adopted as of June 30, 2019 In June 2016, the FASB, issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326)”: Measurement of Credit Losses on Financial Instruments, which changes the recognition model for the impairment of financial instruments, including accounts receivable, loans and held-to-maturity debt securities, among others. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. In contrast to current guidance, which considers current information and events and utilizes a probable threshold, (an “incurred loss” model), ASU 2016–13 mandates an “expected loss” model. The expected loss model: (i) estimates the risk of loss even when risk is remote, (ii) estimates losses over the contractual life, (iii) considers past events, current conditions and reasonable supported forecasts and (iv) has no recognition threshold. The Company is currently assessing the potential impact that the adoption will have on its consolidated financial statements.
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Leases (Tables) |
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| Lease, Cost [Table Text Block] | The components of lease expense for the quarter ended June 30, 2019 were as follows:
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| Lessee, Supplemental Information Related To Leases [Table Text Block] | The following table presents the weighted average lease term and discount rates for our leases:
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| Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents future payments due under leases reconciled to lease liabilities:
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| Finance Lease, Liability, Maturity [Table Text Block] | The following table presents future payments due under leases reconciled to lease liabilities:
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| Lessee, Supplemental Cash Flow Information Related To Leases [Table Text Block] | The following tables present supplemental disclosures of cash flow information related to leases:
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Acquisition (Tables) |
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The acquired assets and assumed liabilities include the following:
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| Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the estimated fair value of Alpha's identifiable intangible assets and the initial assessment of their respective estimated lives:
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| Business Acquisition, Pro Forma Information | The following unaudited summary information is presented on a consolidated pro forma basis as if the acquisition had occurred on April 1, 2017:
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| Schedule of Intangible Assets | Information regarding the Company’s other intangible assets are as follows:
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Inventories (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary Of Inventories | Inventories, net consist of:
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Fair Value of Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Assets And (Liabilities), Measured At Fair Value On A Recurring Basis | The following tables represent the financial assets and (liabilities) measured at fair value on a recurring basis as of June 30, 2019 and March 31, 2019, and the basis for that measurement:
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| Carrying Amounts And Estimated Fair Values Of Company's Financial Instruments | The carrying amounts and estimated fair values of the Company’s derivatives and Notes at June 30, 2019 and March 31, 2019 were as follows:
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value of Derivative Instruments | Presented below in tabular form is information on the location and amounts of derivative fair values in the Consolidated Condensed Balance Sheets and derivative gains and losses in the Consolidated Condensed Statements of Income: Fair Value of Derivative Instruments June 30, 2019 and March 31, 2019
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| The Effect Of Derivative Instruments On Consolidated Condensed Statements Of Income | The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended June 30, 2019
The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 1, 2018
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Warranty (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Analysis Of Changes In Liability For Product Warranties | An analysis of changes in the liability for product warranties is as follows:
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Restructuring Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of Restructuring Reserve | A roll-forward of the restructuring reserve is as follows:
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Debt (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Long-Term Debt And Capital Lease Obligations | The following summarizes the Company’s long-term debt as of June 30, 2019 and March 31, 2019:
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Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Periodic Benefit Cost Related To Defined Benefit Pension Plans | The following tables present the components of the Company’s net periodic benefit cost related to its defined benefit pension plans:
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Stockholders' Equity and Noncontrolling Interests (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Change In Number Of Shares Of Common Stock Outstanding | The following demonstrates the change in the number of shares of common stock outstanding during the first quarter ended June 30, 2019:
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| Components Of Accumulated Other Comprehensive Income | The components of AOCI, net of tax, as of June 30, 2019 and March 31, 2019, are as follows:
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| Reclassification from Accumulated Other Comprehensive Income | The following table presents reclassifications from AOCI during the first quarter ended June 30, 2019:
The following table presents reclassifications from AOCI during the first quarter ended July 1, 2018:
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Earnings Per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Weighted Average Number of Shares | The following table sets forth the reconciliation from basic to diluted weighted-average number of common shares outstanding and the calculations of net earnings per common share attributable to EnerSys stockholders.
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Business Segments Business Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Selected Financial Data for Reportable Business Segments and Product Lines | Summarized financial information related to the Company's reportable segments for the first quarter ended June 30, 2019 and July 1, 2018 is shown below:
(1) The Company does not allocate interest expense or other (income) expense to the reportable segments. (2) The Company does not allocate interest expense or other (income) expense to the reportable segments.
|
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Basis of Presentation - (Additional Information) (Details) $ in Thousands |
Apr. 01, 2019
USD ($)
|
|---|---|
| Accounting Standards Update 2016-02 | |
| Revenue from External Customer [Line Items] | |
| Right-of-use asset | $ 84,878 |
| Lease liability | 87,248 |
| Accounting Standards Update 2018-02 | |
| Revenue from External Customer [Line Items] | |
| Stranded tax effects not reclassified | $ 478 |
Revenue Recognition - (Additional Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Mar. 31, 2019 |
|
| Disaggregation of Revenue [Line Items] | |||
| Net sales | $ 780,230 | $ 670,930 | |
| Remaining performance obligation | 64,647 | ||
| Contract with customer, liability, current portion | 14,289 | $ 15,162 | |
| Contract with customer, liability, noncurrent portion | 6,821 | 6,360 | |
| Unbilled contracts receivable | 42,520 | $ 38,778 | |
| Right to recover product | 2,667 | ||
| Refund liability | 5,183 | ||
| Transferred over Time | |||
| Disaggregation of Revenue [Line Items] | |||
| Net sales | 41,495 | 18,404 | |
| Service | |||
| Disaggregation of Revenue [Line Items] | |||
| Net sales | $ 60,718 | $ 35,482 | |
Leases - (Additional Information) (Details) |
Jun. 30, 2019 |
|---|---|
| Minimum | |
| Lessee, Lease, Description [Line Items] | |
| Contract term | 1 year |
| Maximum | |
| Lessee, Lease, Description [Line Items] | |
| Contract term | 17 years |
Leases - (Balance Sheet Classification) (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
|---|---|
| Leases [Abstract] | |
| Operating lease right-of-use asset | $ 81,627 |
| Operating lease current liabilities | 23,265 |
| Operating lease non-current liabilities | 60,811 |
| Finance lease right-of-use asset | 10,906 |
| Finance lease current liabilities | 10,383 |
| Finance lease non-current liabilities | $ 557 |
Leases - (Lease Cost) (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Jun. 30, 2019
USD ($)
| |
| Operating Leases: | |
| Operating lease cost | $ 7,295 |
| Variable lease cost | 1,706 |
| Short term lease cost | 2,184 |
| Finance Leases: | |
| Depreciation | 143 |
| Interest expense | 12 |
| Total | $ 11,340 |
Leases - (Additional Information Related to Leases) (Details) |
Jun. 30, 2019 |
|---|---|
| Operating Leases: | |
| Weighted average remaining lease term (years) | 5 years 2 months 12 days |
| Weighted average discount rate | 5.41% |
| Finance Leases: | |
| Weighted average remaining lease term (years) | 3 years 3 months 18 days |
| Weighted average discount rate | 4.91% |
Leases - (Finance and Operating Lease Maturity Schedules) (Details) $ in Thousands |
Jun. 30, 2019
USD ($)
|
|---|---|
| Finance Leases | |
| Nine months ended March 31, 2020 | $ 10,360 |
| Year ended March 31, 2021 | 219 |
| Year ended March 31, 2022 | 197 |
| Year ended March 31, 2023 | 150 |
| Year ended March 31, 2024 | 107 |
| Thereafter | 26 |
| Total undiscounted lease payments | 11,059 |
| Present value discount | 119 |
| Lease liability | 10,940 |
| Operating Leases | |
| Nine months ended March 31, 2020 | 20,759 |
| Year ended March 31, 2021 | 22,205 |
| Year ended March 31, 2022 | 16,510 |
| Year ended March 31, 2023 | 11,514 |
| Year ended March 31, 2024 | 7,692 |
| Thereafter | 18,144 |
| Total undiscounted lease payments | 96,824 |
| Present value discount | 12,748 |
| Lease liability | $ 84,076 |
Leases - (Supplemental Cash Flow Information) (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Jun. 30, 2019
USD ($)
| |
| Cash paid for amounts included in the measurement of lease liabilities: | |
| Operating cash flows from finance leases | $ 12 |
| Operating cash flows from operating leases | 7,213 |
| Financing cash flows from finance leases | 142 |
| Supplemental non-cash information on lease liabilities arising from right-of-use assets: | |
| Right-of-use assets obtained in exchange for new finance lease liabilities | 0 |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ 2,628 |
Acquisitions - (Assets and Liabilities Acquired) (Details) - USD ($) $ in Thousands |
Dec. 07, 2018 |
Jun. 30, 2019 |
Mar. 31, 2019 |
|---|---|---|---|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 656,424 | $ 656,399 | |
| Alpha | |||
| Business Acquisition [Line Items] | |||
| Accounts receivable | $ 115,467 | ||
| Inventories | 84,297 | ||
| Other current assets | 6,822 | ||
| Other intangible assets | 332,000 | $ 332,000 | |
| Property, plant and equipment | 20,987 | ||
| Other assets | 9,005 | ||
| Total assets acquired | 568,578 | ||
| Accounts payable | 35,803 | ||
| Accrued liabilities | 41,918 | ||
| Deferred income taxes | 56,331 | ||
| Other liabilities | 12,642 | ||
| Total liabilities assumed | 146,694 | ||
| Net assets acquired | 421,884 | ||
| Cash paid for net assets acquired | 650,000 | ||
| Shares issued in acquisition, value | 93,268 | ||
| Working capital adjustment | (766) | ||
| Consideration transferred | 742,502 | ||
| Goodwill | $ 320,618 |
Acquisitions - (Summary of Intangible Assets) (Details) - Alpha - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Dec. 07, 2018 |
|
| Business Acquisition [Line Items] | ||
| Other intangible assets | $ 332,000 | $ 332,000 |
| Customer relationships | ||
| Business Acquisition [Line Items] | ||
| Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 14 years | |
| Acquired intangible assets | $ 221,000 | |
| Technology | ||
| Business Acquisition [Line Items] | ||
| Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 10 years | |
| Acquired intangible assets | $ 55,000 | |
| Trademarks | ||
| Business Acquisition [Line Items] | ||
| Acquired indefinite-lived intangible assets | $ 56,000 |
Acquisitions - (Pro Forma Information) (Details) - Alpha $ / shares in Units, $ in Thousands |
3 Months Ended |
|---|---|
|
Jun. 30, 2019
USD ($)
$ / shares
| |
| Business Acquisition [Line Items] | |
| Net sales | $ | $ 835,292 |
| Net earnings attributable to EnerSys stockholders | $ | $ 58,665 |
| Net earnings per share attributable to EnerSys stockholders - basic | $ / shares | $ 1,360 |
| Net earnings per share attributable to EnerSys stockholders - assuming dilution | $ / shares | $ 1,340 |
Inventories - (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Mar. 31, 2019 |
|---|---|---|
| Inventory Disclosure [Abstract] | ||
| Raw materials | $ 138,886 | $ 138,718 |
| Work-in-process | 123,416 | 129,736 |
| Finished goods | 257,813 | 235,415 |
| Total | $ 520,115 | $ 503,869 |
Fair Value of Financial Instruments - (Additional Information) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Mar. 31, 2019 |
|---|---|---|
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Face value of trades, percentage | 102.00% | 99.00% |
| 5.00% Senior Notes due 2023 | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Interest rate | 5.00% | |
| Long-term debt | $ 300,000 |
Fair Value of Financial Instruments - (Carrying Amounts and Estimated Fair Values) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Mar. 31, 2019 |
|---|---|---|
| Carrying Amount | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Derivative asset | $ 393 | $ 0 |
| Notes | 300,000 | 300,000 |
| Derivative liability | 0 | 1,151 |
| Fair Value | ||
| Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
| Derivative asset | 393 | 0 |
| Notes | 306,000 | 297,000 |
| Derivative liability | $ 0 | $ 1,151 |
Derivative Financial Instruments - (Additional Information) (Details) $ in Thousands, lb in Millions |
3 Months Ended | |
|---|---|---|
|
Jun. 30, 2019
USD ($)
lb
|
Mar. 31, 2019
USD ($)
lb
|
|
| Cost of Sales | ||
| Derivatives, Fair Value [Line Items] | ||
| Foreign currency cash flow hedge loss to be reclassified during next 12 months | $ 3,097 | |
| Lead forward contracts | ||
| Derivatives, Fair Value [Line Items] | ||
| Notional amount in pounds | lb | 38.0 | 42.0 |
| Fair value of hedges, net | $ 33,012 | $ 39,218 |
| Foreign currency forward contracts | ||
| Derivatives, Fair Value [Line Items] | ||
| Notional amount | 29,891 | 42,318 |
| Foreign currency forward contracts | Derivatives and Hedging Activities Not Designated as Hedging Instruments | ||
| Derivatives, Fair Value [Line Items] | ||
| Notional amount | $ 21,339 | $ 22,201 |
| Maximum | Lead forward contracts | ||
| Derivatives, Fair Value [Line Items] | ||
| Derivative, remaining maturity | 1 year |
Derivative Financial Instruments - (Derivatives Not Designated as Hedging Instruments) (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Derivatives Not Designated as Hedging Instruments | $ 34 | $ (718) |
| Foreign currency forward contracts | Other Income Expense | ||
| Derivative Instruments, Gain (Loss) [Line Items] | ||
| Derivatives Not Designated as Hedging Instruments | $ 34 | $ (718) |
Income Taxes - (Additional Information) (Details) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Mar. 31, 2019 |
|
| Income Tax Disclosure [Abstract] | |||
| Transition tax liability | $ 11,462,000 | $ 84,017,000 | |
| Effective income tax rates | 17.00% | 19.70% | |
| Foreign income as a percentage or worldwide income | $ 0.64 | $ 0.66 | |
| Foreign effective income tax rates | 11.50% | 11.80% | |
| Tax rate of Swiss subsidiary | 6.00% | ||
Warranty - (Analysis of Changes in the Liability) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Product Warranties Disclosures [Abstract] | ||
| Balance at beginning of period | $ 54,568 | $ 50,602 |
| Current period provisions | 7,519 | 4,836 |
| Costs incurred | (5,948) | (4,381) |
| Foreign currency translation adjustment | 40 | (1,368) |
| Balance at end of period | $ 56,179 | $ 49,689 |
Commitments, Contingencies and Litigation - (Additional Information) (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|---|
Apr. 30, 2019 |
Jun. 30, 2017 |
Feb. 29, 2016 |
Jun. 30, 2019 |
Mar. 31, 2019 |
|
| Commitments, Contingencies And Litigation [Line Items] | |||||
| Provision for environmental liabilities | $ 1,060 | $ 1,081 | |||
| Belgium Anti-Competition Proceeding | |||||
| Commitments, Contingencies And Litigation [Line Items] | |||||
| Penalties paid relating to anti-competition investigations | $ 1,962 | 1,272 | |||
| Germany Anti-Competition Proceeding | |||||
| Commitments, Contingencies And Litigation [Line Items] | |||||
| Penalties paid relating to anti-competition investigations | $ 14,811 | ||||
| Reserves for anti-competition investigations | $ 0 | $ 7,258 | |||
| Litigation Settlement, Amount Awarded to Other Party | $ 7,258 | ||||
Restructuring Plans - (Roll-forward of Restructuring Reserve) (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Jun. 30, 2019
USD ($)
| |
| Restructuring Cost and Reserve [Line Items] | |
| Restructuring reserve, beginning balance | $ 2,952 |
| Accrued | 1,519 |
| Costs incurred | (2,000) |
| Foreign currency impact | 2 |
| Restructuring reserve, ending balance | 2,473 |
| Employee Severance | |
| Restructuring Cost and Reserve [Line Items] | |
| Restructuring reserve, beginning balance | 2,356 |
| Accrued | 1,346 |
| Costs incurred | (1,589) |
| Foreign currency impact | 4 |
| Restructuring reserve, ending balance | 2,117 |
| Other | |
| Restructuring Cost and Reserve [Line Items] | |
| Restructuring reserve, beginning balance | 596 |
| Accrued | 173 |
| Costs incurred | (411) |
| Foreign currency impact | (2) |
| Restructuring reserve, ending balance | $ 356 |
Debt - (Long-term Debt Including Capital Lease Obligations) (Details) - USD ($) $ in Thousands |
Jun. 30, 2019 |
Mar. 31, 2019 |
Apr. 23, 2015 |
|---|---|---|---|
| Debt Instrument [Line Items] | |||
| Debt and capital lease obligations | $ 983,813 | $ 977,315 | |
| Unamortized Issuance Costs | 5,181 | 5,559 | |
| Long-term debt, net of unamortized issuance costs | 978,632 | 971,756 | |
| 5.00% Senior Notes due 2023 | |||
| Debt Instrument [Line Items] | |||
| Long-term debt | 300,000 | 300,000 | $ 300,000 |
| Unamortized Issuance Costs | 2,341 | 2,497 | |
| Secured Debt | Incremental Commitment Agreement | Amended Credit Facility, due 2022 | |||
| Debt Instrument [Line Items] | |||
| Incremental term loan commitment | 683,813 | 677,315 | |
| Unamortized Issuance Costs | $ 2,840 | $ 3,062 |
Retirement Plans - (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| United States Plans | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Service cost | $ 0 | $ 0 |
| Interest cost | 154 | 159 |
| Expected return on plan assets | (112) | (122) |
| Amortization and deferral | 52 | 56 |
| Net periodic benefit cost | 94 | 93 |
| International Plans | ||
| Defined Benefit Plan Disclosure [Line Items] | ||
| Service cost | 235 | 255 |
| Interest cost | 376 | 470 |
| Expected return on plan assets | (538) | (552) |
| Amortization and deferral | 253 | 312 |
| Net periodic benefit cost | $ 326 | $ 485 |
Stockholders' Equity and Noncontrolling Interests - (Change in the Number of Shares of Common Stock Outstanding) (Details) |
3 Months Ended |
|---|---|
|
Jun. 30, 2019
shares
| |
| Common Stock Outstanding Roll Forward | |
| Shares outstanding, beginning balance (in shares) | 42,620,750 |
| Purchase of treasury stock (in shares) | 376,343 |
| Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes (in shares) | 234,032 |
| Shares outstanding, ending balance (in shares) | 42,478,439 |
Stockholders' Equity and Noncontrolling Interests - (Treasury Stock) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
|---|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
Mar. 31, 2019 |
|
| Equity [Abstract] | |||
| Purchase of treasury stock (in shares) | 376,343 | ||
| Treasury stock purchased during period, value | $ 23,029 | $ 0 | |
| Treasury stock (in shares) | 12,601,907 | 12,227,773 | |
Stockholders' Equity and Noncontrolling Interests - (Reclassifications from AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Net loss on cash flow hedging derivative instruments | $ (578,718) | $ (505,070) |
| Derivatives in cash flow hedging relationships | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Tax expense (benefit) | (156) | (50) |
| Net of tax | 502 | 164 |
| Derivatives in cash flow hedging relationships | Reclassification out of Accumulated Other Comprehensive Income | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Net loss on cash flow hedging derivative instruments | 658 | 214 |
| Defined benefit pension costs | ||
| Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
| Prior service costs and deferrals | 305 | 368 |
| Tax expense (benefit) | (68) | (68) |
| Net of tax | $ 237 | $ 300 |
Earnings Per Share - (Reconciliation from Basic to Diluted Average Common Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
|---|---|---|
Jun. 30, 2019 |
Jul. 01, 2018 |
|
| Earnings Per Share [Abstract] | ||
| Net earnings attributable to EnerSys stockholders | $ 45,860 | |
| Basic weighted-average number of common shares outstanding (in shares) | 42,656,339 | 42,012,546 |
| Common shares from exercise and lapse of equity awards, net of shares assumed reacquired (in shares) | 462,095 | 561,435 |
| Diluted weighted-average number of common shares outstanding (in shares) | 43,118,434 | 42,573,981 |
| Basic earnings (loss) per common share attributable to EnerSys stockholders (in dollars per share) | $ 1.14 | $ 1.09 |
| Diluted earnings (loss) per common share attributable to EnerSys stockholders (in dollars per share) | $ 1.13 | $ 1.08 |
| Anti-dilutive equity awards not included in diluted weighted-average common shares (in shares) | 656,810 | 164,085 |
Business Segments - (Goodwill) (Details) $ in Thousands |
3 Months Ended |
|---|---|
|
Jun. 30, 2019
USD ($)
| |
| Segment Reporting Information [Line Items] | |
| Balance at March 31, 2019 | $ 656,399 |
| Foreign currency translation adjustment | 25 |
| Balance as of June 30, 2019 | 656,424 |
| Americas | |
| Segment Reporting Information [Line Items] | |
| Balance at March 31, 2019 | 470,194 |
| Foreign currency translation adjustment | 55 |
| Balance as of June 30, 2019 | 470,249 |
| EMEA | |
| Segment Reporting Information [Line Items] | |
| Balance at March 31, 2019 | 143,269 |
| Foreign currency translation adjustment | 639 |
| Balance as of June 30, 2019 | 143,908 |
| Asia | |
| Segment Reporting Information [Line Items] | |
| Balance at March 31, 2019 | 42,936 |
| Foreign currency translation adjustment | (669) |
| Balance as of June 30, 2019 | $ 42,267 |
Subsequent Events - (Details) |
Aug. 07, 2019
$ / shares
|
|---|---|
| Subsequent Event | |
| Subsequent Event [Line Items] | |
| Common stock dividends (in dollars per share) | $ 0.175 |
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