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 | ☐ | 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 |
July 2, 2023 | March 31, 2023 | |||||||||||||
Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Accounts receivable, net of allowance for doubtful accounts: July 2, 2023 - $ | ||||||||||||||
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, $ | ||||||||||||||
Common Stock, $ | ||||||||||||||
Additional paid-in capital | ||||||||||||||
Treasury stock at cost, | ( | ( | ||||||||||||
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 | ||||||||||||||
July 2, 2023 | July 3, 2022 | |||||||||||||
Sales from products | $ | $ | ||||||||||||
Sales from services | ||||||||||||||
Net sales | ||||||||||||||
Cost of goods sold | ||||||||||||||
Cost of services | ||||||||||||||
Inventory adjustment relating to exit activities | ||||||||||||||
Gross profit | ||||||||||||||
Operating expenses | ||||||||||||||
Restructuring and other exit charges | ||||||||||||||
Operating earnings | ||||||||||||||
Interest expense | ||||||||||||||
Other expense (income), net | ||||||||||||||
Earnings before income taxes | ||||||||||||||
Income tax expense | ||||||||||||||
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 | ||||||||||||||
July 2, 2023 | July 3, 2022 | |||||||||||||
Net earnings | $ | $ | ||||||||||||
Other comprehensive income (loss): | ||||||||||||||
Net unrealized gain (loss) on derivative instruments, net of tax | $ | ( | ||||||||||||
Pension funded status adjustment, net of tax | $ | |||||||||||||
Foreign currency translation adjustment | $ | ( | ||||||||||||
Total other comprehensive income (loss), net of tax | $ | ( | ||||||||||||
Total comprehensive income (loss) | $ | ( | ||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | $ | ( | ( | |||||||||||
Comprehensive income (loss) attributable to EnerSys stockholders | $ | $ | ( |
Quarter ended | ||||||||||||||
July 2, 2023 | July 3, 2022 | |||||||||||||
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 (losses) gains | ( | |||||||||||||
Cash (settlements) proceeds | ( | |||||||||||||
Provision for doubtful accounts | ( | |||||||||||||
Deferred income taxes | ||||||||||||||
Non-cash interest expense | ||||||||||||||
Stock-based compensation | ||||||||||||||
(Gain) loss on disposal of property, plant, and equipment | ( | |||||||||||||
Changes in assets and liabilities: | ||||||||||||||
Accounts receivable | ||||||||||||||
Inventories | ( | ( | ||||||||||||
Prepaid and other current assets | ( | ( | ||||||||||||
Other assets | ( | ( | ||||||||||||
Accounts payable | ( | ( | ||||||||||||
Accrued expenses | ( | ( | ||||||||||||
Other liabilities | ||||||||||||||
Net cash provided by (used in) operating activities | ( | |||||||||||||
Cash flows from investing activities | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Purchase of business | ( | |||||||||||||
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 Second Amended Revolver borrowings | ||||||||||||||
Repayments of Second Amended Revolver borrowings | ( | ( | ||||||||||||
Option proceeds, net | ||||||||||||||
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 in cash and cash equivalents | ( | ( | ||||||||||||
Cash and cash equivalents at beginning of period | ||||||||||||||
Cash and cash equivalents at end of period | $ | $ | ||||||||||||
July 2, 2023 | March 31, 2023 | |||||||||||||
Accounts receivable | $ | $ | ||||||||||||
Allowance for doubtful accounts | ||||||||||||||
Accounts receivable, net | $ | $ |
July 2, 2023 | March 31, 2023 | |||||||||||||
Raw materials | $ | $ | ||||||||||||
Work-in-process | ||||||||||||||
Finished goods | ||||||||||||||
Total | $ | $ |
Total Fair Value Measurement July 2, 2023 | 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 | ( | ( | ||||||||||||||||||||||||
Interest Rate Swaps | ||||||||||||||||||||||||||
Net investment hedges | ( | ( | ||||||||||||||||||||||||
Total derivatives | $ | ( | $ | $ | ( | $ |
Total Fair Value Measurement March 31, 2023 | 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 | ||||||||||||||||||||||||||
Interest Rate Swaps | ( | ( | ||||||||||||||||||||||||
Net investment hedges | ( | ( | ||||||||||||||||||||||||
Total derivatives | $ | ( | $ | $ | ( | $ |
July 2, 2023 | March 31, 2023 | |||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||
Financial assets: | ||||||||||||||||||||||||||
Derivatives (1) | $ | $ | $ | $ | ||||||||||||||||||||||
Financial liabilities: | ||||||||||||||||||||||||||
Senior Notes (2) | $ | $ | $ | $ | ||||||||||||||||||||||
Derivatives (1) | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Derivatives and Hedging Activities Designated as Cash Flow Hedges | Derivatives and Hedging Activities Designated as Net Investment Hedges | Derivatives and Hedging Activities Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||||||
July 2, 2023 | March 31, 2023 | July 2, 2023 | March 31, 2023 | July 2, 2023 | March 31, 2023 | |||||||||||||||||||||||||||||||||
Prepaid and other current assets: | ||||||||||||||||||||||||||||||||||||||
Lead forward contracts | $ | $ | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | ||||||||||||||||||||||||||||||||||||
Net investment hedges | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other assets: | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net investment hedges | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total assets | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Accrued expenses: | ||||||||||||||||||||||||||||||||||||||
Lead forward contracts | $ | $ | $ | — | $ | — | $ | $ | ||||||||||||||||||||||||||||||
Foreign currency forward contracts | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other liabilities: | ||||||||||||||||||||||||||||||||||||||
Interest Rate Swaps | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Net investment hedges | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total liabilities | $ | $ | $ | $ | $ | $ |
Derivatives Designated as Cash Flow Hedges | Pretax Gain (Loss) Recognized in AOCI on Derivative (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 | |||||||||||||||||||
Interest rate swaps | Interest expense | |||||||||||||||||||
Total |
Derivatives Designated as Net Investment Hedges | Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||
Cross currency fixed interest rate swaps | $ | ( | Interest expense | $ | ||||||||||||||||
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 Derivative (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 Designated as Net Investment Hedges | Pretax Gain (Loss) Recognized in AOCI on Derivative (Effective Portion) | Location of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | Pretax Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | |||||||||||||||||
Cross currency fixed interest rate swaps | $ | Interest expense | $ | |||||||||||||||||
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 | ||||||||||||||
July 2, 2023 | July 3, 2022 | |||||||||||||
Balance at beginning of period | $ | $ | ||||||||||||
Current period provisions | ||||||||||||||
Costs incurred | ( | ( | ||||||||||||
Foreign currency translation adjustment | ( | |||||||||||||
Balance at end of period | $ | $ |
Quarter ended July 2, 2023 | ||||||||||||||||||||||||||
Energy Systems | Motive Power | Specialty | Total | |||||||||||||||||||||||
Restructuring charges | $ | $ | $ | $ | ||||||||||||||||||||||
Exit charges | ||||||||||||||||||||||||||
Restructuring and other exit charges | $ | $ | $ | $ |
Balance as of March 31, 2023 | $ | |||||||
Accrued | ||||||||
Costs incurred | ( | |||||||
Foreign currency impact | ||||||||
Balance as of July 2, 2023 | $ |
July 2, 2023 | March 31, 2023 | |||||||||||||||||||||||||
Principal | Unamortized Issuance Costs | Principal | Unamortized Issuance Costs | |||||||||||||||||||||||
Senior Notes | $ | $ | $ | $ | ||||||||||||||||||||||
Fourth Amended Credit Facility, due 2026 | ||||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
Less: Unamortized issuance costs | ||||||||||||||||||||||||||
Long-term debt, net of unamortized issuance costs | $ | $ |
United States Plans | International Plans | |||||||||||||||||||||||||
Quarter ended | Quarter ended | |||||||||||||||||||||||||
July 2, 2023 | July 3, 2022 | July 2, 2023 | July 3, 2022 | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | ||||||||||||||||||||||
Amortization and deferral | ||||||||||||||||||||||||||
Net periodic benefit cost | $ | $ | $ | $ |
Shares outstanding as of March 31, 2023 | ||||||||
Shares issued under equity-based compensation plans, net of equity awards surrendered for option price and taxes | ||||||||
Shares outstanding as of July 2, 2023 |
March 31, 2023 | Before Reclassifications | Amounts Reclassified from AOCI | July 2, 2023 | |||||||||||||||||||||||
Pension funded status adjustment | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments | ( | |||||||||||||||||||||||||
Foreign currency translation adjustment (1) | ( | ( | ||||||||||||||||||||||||
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 unrealized gain on derivative instruments | $ | ( | Cost of goods sold | |||||||||||
Tax expense | ||||||||||||||
Net unrealized loss on derivative instruments, net of tax | $ | ( | ||||||||||||
Derivatives in net investment hedging relationships: | ||||||||||||||
Net unrealized gain on derivative instruments | $ | ( | Interest expense | |||||||||||
Tax expense | ||||||||||||||
Net unrealized gain 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 12 | ||||||||||||
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 unrealized gain on derivative instruments | $ | ( | Cost of goods sold | |||||||||||
Tax expense | ||||||||||||||
Net unrealized gain on derivative instruments, net of tax | $ | ( | ||||||||||||
Derivatives in net investment hedging relationships: | ||||||||||||||
Net unrealized gain on derivative instruments | $ | ( | Interest expense | |||||||||||
Tax expense | ||||||||||||||
Net unrealized gain 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 12 | ||||||||||||
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, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension funded status adjustment (net of tax benefit of $ | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments (net of tax expense of $ | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 2, 2023 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
(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, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued under equity awards (taxes paid related to net share settlement of equity awards), net | — | — | ( | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of common stock | — | — | — | ( | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net earnings | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends ($ | — | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Dissolution of joint venture | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension funded status adjustment (net of tax benefit of $ | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gain (loss) on derivative instruments (net of tax benefit of $ | — | — | — | — | — | ( | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | ( | — | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 3, 2022 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Quarter ended | ||||||||||||||
July 2, 2023 | July 3, 2022 | |||||||||||||
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 |
Quarter ended | ||||||||||||||
July 2, 2023 | July 3, 2022 | |||||||||||||
Net sales by segment to unaffiliated customers (1) | ||||||||||||||
Energy Systems | $ | $ | ||||||||||||
Motive Power | ||||||||||||||
Specialty | ||||||||||||||
Total net sales | $ | $ | ||||||||||||
Operating earnings by segment | ||||||||||||||
Energy Systems | $ | $ | ||||||||||||
Motive Power | ||||||||||||||
Specialty | ||||||||||||||
Corporate and other (3) | ||||||||||||||
Inventory adjustment relating to exit activities - Specialty | ( | |||||||||||||
Restructuring and other exit charges - Energy Systems | ( | ( | ||||||||||||
Restructuring and other exit charges - Motive Power | ( | ( | ||||||||||||
Restructuring and other exit charges - Specialty | ( | |||||||||||||
Amortization - Energy Systems | ( | ( | ||||||||||||
Amortization - Motive | ( | ( | ||||||||||||
Amortization - Specialty | ( | ( | ||||||||||||
Other - Energy Systems | ( | ( | ||||||||||||
Other - Motive | ( | ( | ||||||||||||
Other - Specialty | $ | ( | $ | |||||||||||
Total operating earnings (2) | $ | $ |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
($ in Millions) | July 2, 2023 | March 31, 2023 | July 3, 2022 | |||||||||||||||||
Accounts receivable, net | $ | 566.5 | $ | 637.8 | $ | 697.1 | ||||||||||||||
Inventory, net | 809.4 | 797.8 | 777.7 | |||||||||||||||||
Accounts payable | (343.3) | (378.6) | (343.3) | |||||||||||||||||
Total primary operating capital | $ | 1,032.6 | $ | 1,057.0 | $ | 1,131.5 | ||||||||||||||
Trailing 3 months net sales | $ | 908.6 | $ | 989.9 | $ | 899.0 | ||||||||||||||
Trailing 3 months net sales annualized | $ | 3,634.4 | $ | 3,959.6 | $ | 3,595.9 | ||||||||||||||
Primary operating capital as a % of annualized net sales | 28.4 | % | 26.7 | % | 31.5 | % |
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||||||||||||||||||||
Energy Systems | $ | 424.6 | 46.7 | % | $ | 408.6 | 45.5 | % | $ | 16.0 | 3.9 | % | ||||||||||||||||||||||||||
Motive Power | 350.8 | 38.6 | 367.9 | 40.9 | (17.1) | (4.6) | ||||||||||||||||||||||||||||||||
Specialty | 133.2 | 14.7 | 122.5 | 13.6 | 10.7 | 8.7 | ||||||||||||||||||||||||||||||||
Total net sales | $ | 908.6 | 100.0 | % | $ | 899.0 | 100.0 | % | $ | 9.6 | 1.1 | % |
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||||||||||||||||||||
Gross Profit | $ | 240.3 | 26.4 | % | $ | 185.5 | 20.6 | % | $ | 54.8 | 29.5 | % |
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||||||||||||||||||||
Operating expenses | $ | 144.6 | 15.9 | % | $ | 127.1 | 14.1 | % | $ | 17.5 | 13.8 | % | ||||||||||||||||||||||||||
Restructuring and other exit charges | $ | 6.3 | 0.7 | % | $ | 8.3 | 0.9 | % | $ | (2.0) | (24.2) | % | ||||||||||||||||||||||||||
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales (1) | In Millions | Percentage of Total Net Sales (1) | In Millions | % | |||||||||||||||||||||||||||||||||
Energy Systems | $ | 29.7 | 7.0 | % | $ | 15.0 | 3.7 | % | $ | 14.7 | 97.5 | % | ||||||||||||||||||||||||||
Motive Power | 50.3 | 14.4 | 42.3 | 11.5 | 8.0 | 18.8 | ||||||||||||||||||||||||||||||||
Specialty | 9.8 | 7.4 | 9.2 | 7.5 | 0.6 | 6.3 | ||||||||||||||||||||||||||||||||
Corporate and other (2) | 17.4 | 1.9 | — | — | 17.4 | NM | ||||||||||||||||||||||||||||||||
Subtotal | 107.2 | 11.8 | 66.5 | 7.4 | 40.7 | 60.9 | ||||||||||||||||||||||||||||||||
Inventory adjustment relating to exit activities -Specialty | (3.1) | (2.3) | — | — | (3.1) | NM | ||||||||||||||||||||||||||||||||
Restructuring and other exit charges - Energy Systems | (0.5) | (0.1) | (0.2) | — | (0.3) | NM | ||||||||||||||||||||||||||||||||
Restructuring and other exit charges - Motive Power | (1.5) | (0.4) | (8.1) | (2.2) | 6.6 | (80.9) | ||||||||||||||||||||||||||||||||
Restructuring and other exit charges - Specialty | (4.3) | (3.2) | — | — | (4.3) | NM | ||||||||||||||||||||||||||||||||
Amortization of intangible assets - Energy Systems | (6.2) | (1.5) | (7.3) | (1.8) | 1.1 | (15.2) | ||||||||||||||||||||||||||||||||
Amortization of intangible assets - Motive Power | (0.1) | — | (0.1) | — | — | 0.9 | ||||||||||||||||||||||||||||||||
Amortization of intangible assets - Specialty | (0.7) | (0.5) | (0.7) | (0.6) | — | (4.5) | ||||||||||||||||||||||||||||||||
Other - Energy Systems | (0.8) | (0.2) | — | — | (0.8) | NM | ||||||||||||||||||||||||||||||||
Other - Motive Power | (0.5) | (0.1) | — | — | (0.5) | NM | ||||||||||||||||||||||||||||||||
Other - Specialty | (0.1) | (0.1) | — | — | (0.1) | NM | ||||||||||||||||||||||||||||||||
Total operating earnings | $ | 89.4 | 9.8 | % | 50.1 | 5.6 | % | $ | 39.3 | 78.4 | % |
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||||||||||||||||||||
Interest expense | $ | 15.2 | 1.7 | % | $ | 11.6 | 1.3 | % | $ | 3.6 | 31.5 | % |
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||||||||||||||||||||
Other expense (income), net | $ | 0.7 | 0.1 | % | $ | 1.7 | 0.2 | % | $ | (1.0) | (62.3)% |
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||||||||||||||||||||
Earnings before income taxes | $ | 73.5 | 8.1 | % | $ | 36.8 | 4.1 | % | $ | 36.7 | 100.0 | % |
Quarter ended July 2, 2023 | Quarter ended July 3, 2022 | Increase (Decrease) | ||||||||||||||||||||||||||||||||||||
In Millions | Percentage of Total Net Sales | In Millions | Percentage of Total Net Sales | In Millions | % | |||||||||||||||||||||||||||||||||
Income tax expense | $ | 6.7 | 0.7 | % | $ | 5.8 | 0.6 | % | $ | 0.9 | 16.5 | % | ||||||||||||||||||||||||||
Effective tax rate | 9.2% | 15.7% | (6.5)% |
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) | ||||||||||||||||||||||
July 2, 2023 | $ | 52.1 | 55.0 | $ | 0.95 | 9 | % | |||||||||||||||||||
March 31, 2023 | 47.9 | 50.0 | 0.96 | 8 | ||||||||||||||||||||||
July 3, 2022 | 54.1 | 55.5 | 0.97 | 8 |
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) (3) | ||||||||||||||||||||||
April 1 - April 30, 2023 | — | $ | — | — | $ | 194,545,418 | ||||||||||||||||||||
May 1 - May 31, 2023 | 15,897 | 95.43 | — | 194,545,418 | ||||||||||||||||||||||
June 1 - June 30, 2023 | 105,122 | 104.48 | — | 194,545,418 | ||||||||||||||||||||||
Total | 121,019 | $ | 103.29 | — |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
ITEM 6. | EXHIBITS |
Exhibit Number | Description of Exhibit | |||||||
3.1 | ||||||||
3.2 | ||||||||
10.1 | ||||||||
10.2 | ||||||||
10.3 | ||||||||
10.4 | ||||||||
10.5 | ||||||||
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/ Andrea J. Funk | |||||||
Andrea J. Funk | ||||||||
Chief Financial Officer |
ENERSYS | ||||||||
By: | ||||||||
Name: | David M. Shaffer | |||||||
Title: | President & Chief Executive Officer | |||||||
PARTICIPANT | ||||||||
Name: | ||||||||
Address: | ||||||||
By | /s/ David M. Shaffer | |||||||
David M. Shaffer | ||||||||
Chief Executive Officer |
By | /s/ Andrea J. Funk | |||||||
Andrea J. Funk | ||||||||
Chief Financial Officer |
By | /s/ David M. Shaffer | |||||||
David M. Shaffer | ||||||||
Chief Executive Officer | ||||||||
By | /s/ Andrea J. Funk | |||||||
Andrea J. Funk | ||||||||
Chief Financial Officer |
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jul. 02, 2023 |
Mar. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9,033 | $ 8,775 |
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) | 56,129,710 | 56,004,613 |
Common stock, shares, outstanding (in shares) | 41,030,034 | 40,901,059 |
Treasury stock, shares (in shares) | 15,099,676 | 15,103,554 |
Consolidated Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
|
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 66,797 | $ 30,978 |
Other comprehensive income (loss): | ||
Net unrealized gain (loss) on derivative instruments, net of tax | 1,786 | (8,234) |
Pension funded status adjustment, net of tax | 20 | 89 |
Foreign currency translation adjustment | 2,002 | (52,220) |
Total other comprehensive income (loss), net of tax | 3,808 | (60,365) |
Total comprehensive income (loss) | 70,605 | (29,387) |
Comprehensive income (loss) attributable to noncontrolling interests | (190) | (210) |
Comprehensive income (loss) attributable to EnerSys stockholders | $ 70,795 | $ (29,177) |
Basis of Presentation |
3 Months Ended |
---|---|
Jul. 02, 2023 | |
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 current quarter ended July 2, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024. The Consolidated Condensed Balance Sheet at March 31, 2023 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 2023 Annual Report on Form 10-K (SEC File No. 001-32253), which was filed on May 25, 2023 (the “2023 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 2024 end on July 2, 2023, October 1, 2023, December 31, 2023, and March 31, 2024, respectively. The four quarters in fiscal 2023 ended on July 3, 2022, October 2, 2022, January 1, 2023, and March 31, 2023, 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. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, and the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ from those estimates. Examples of significant estimates include the allowance for credit losses, the recoverability of property, plant and equipment, the incremental borrowing rate for lease liabilities, the recoverability of intangible assets and other long-lived assets, fair value measurements, including those related to financial instruments, goodwill and intangible assets, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations.
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Revenue Recognition |
3 Months Ended |
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Jul. 02, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company’s revenues by reportable segments are presented in Note 16 and are consistent with how we organize and manage our operations, as well as product line net sales information. 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. A small portion of the Company's customer arrangements oblige the Company to create customized products for its customers that require combining 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 2024 and 2023 amounted to $58,654 and $57,004, respectively. On July 2, 2023, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $149,294, of which, the Company estimates that approximately $119,987 will be recognized as revenue in fiscal 2024, $29,242 in fiscal 2025, and $18 in fiscal 2026, $23 in fiscal 2027, and $24 thereafter. 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 July 2, 2023, the current and non-current portion of contract liabilities were $29,822 and $974, respectively. As of March 31, 2023, the current and non-current portion of contract liabilities were $34,594 and $1,437, respectively. Revenues recognized during the first quarter of fiscal 2024 and 2023 that were included in the contract liability at the beginning of the quarter, amounted to $12,391 and $4,590, respectively. Amounts representing work completed and not billed to customers represent contract assets and were $56,177 and $48,616 as of July 2, 2023 and March 31, 2023, 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 July 2, 2023, the right of return asset related to the value of inventory anticipated to be returned from customers was $4,748 and refund liability representing amounts estimated to be refunded to customers was $8,317.
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Accounts Receivable |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable | . Accounts Receivable
During the third quarter of 2023, the Company entered into a Receivables Purchase Agreement (RPA), under which the Company continuously sells its interest in designated pools of trade accounts receivables, at a discount, to a special purpose entity, which in turn sells certain of the receivables to an unaffiliated financial institution ("unaffiliated financial institution") on a monthly basis. The Company may sell certain US-originated accounts receivable balances up to a maximum amount of $150,000. In return for these sales, the Company receives a cash payment equal to the face value of the receivables and is charged a fee of Secured Overnight Financing Rate (“SOFR”) plus 85 basis points against the sold receivable balance. The program is conducted through EnerSys Finance LLC ("EnerSys Finance"), an entity structured to be bankruptcy remote, and matures in December 2025. The Company is deemed the primary beneficiary of EnerSys Finance as the Company has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be significant to the entity from the transfer of the trade accounts receivables into the special purpose entity. Accordingly, EnerSys Finance is included in the Company’s Consolidated Condensed Financial Statements. Receivables sold to unaffiliated financial institutions under the program are excluded from “Accounts receivable, net” on the Company’s Consolidated Condensed Balance Sheets, and cash receipts are reflected as cash provided by operating activities on the Consolidated Condensed Statements of Cash Flows. The purchase price is received in cash when the receivables are sold, and fees charged relating to this balance are recorded to other (income) expense. Certain unsold receivables held by EnerSys Finance serve as collateral to unaffiliated financial institutions. These unsold receivables are included in “Accounts receivable, net” in the Company’s Consolidated Balance Sheets. The Company continues servicing the receivables which were sold and in exchange receives a servicing fee from EnerSys Finance under the program. During the first quarter of 2024, the Company sold $182,391 of accounts receivables for approximately $182,391 in proceeds to an unaffiliated financial institution, of which $183,352 were collected as of July 2, 2023. Total collateralized accounts receivables of approximately $228,154 were held by EnerSys Finance at July 2, 2023. Any accounts receivables held by EnerSys Finance would likely not be available to other creditors of the Company in the event of bankruptcy or insolvency proceedings relating to the Company until the outstanding balances under the RPA are satisfied. Additionally, the financial obligations of EnerSys Finance to the unaffiliated financial institutions under the program are limited to the assets it owns and there is no recourse to the Company for receivables that are uncollectible as a result of the insolvency of EnerSys Finance or its inability to pay the account debtors.
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Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories
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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 July 2, 2023 and March 31, 2023, 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 the 2023 Annual Report. The fair values for foreign currency forward contracts and net investment hedges 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. The fair value of interest rate swap agreements are based on observable prices as quoted for receiving the variable one month term SOFR and paying fixed interest rates and, therefore, were classified as Level 2. 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 Third Amended Credit Facility (as defined in Note 11), 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. In fiscal 2020, the Company issued its 4.375% Senior Notes due December 15, 2027 (the “2027 Notes”), with an original face value of $300,000. The fair value of the 2027 Notes represents the trading values based upon quoted market prices and are classified as Level 2. The 2027 Notes were trading at approximately 92% and 92% of face value on July 2, 2023 and March 31, 2023, respectively. The carrying amounts and estimated fair values of the Company’s derivatives and Senior Notes at July 2, 2023 and March 31, 2023 were as follows:
(1)Represents lead, foreign currency forward contracts, interest rate swaps, and net investment hedges (see Note 6 for asset and liability positions of the lead, foreign currency forward contracts, interest rate swaps, and net investment hedges at July 2, 2023 and March 31, 2023). (2)The fair value amount of the Senior Notes at July 2, 2023 and March 31, 2023 represent the trading value of the instruments. Non-recurring fair value measurements On June 29, 2022, the Company committed to a plan to close its facility in Ooltewah, Tennessee, which focused on manufacturing flooded motive power batteries for electric forklifts. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and Thin Plate Pure Lead (TPPL). As a result, the Company concluded that the carrying value of the asset group was not recoverable and recorded during the first quarter of fiscal 2023 a write-off of $7,300 of the fixed assets, for which there is expected to be no salvageable value. The valuation technique used to measure the fair value of fixed assets was a combination of the income and market approaches. The inputs used to measure the fair value of these fixed assets under the income approach were largely unobservable and accordingly were classified as Level 3.
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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, foreign exchange rates and interest, 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 July 2, 2023 and March 31, 2023, the Company has hedged the price to purchase approximately 55.0 million pounds and 50.0 million pounds of lead, respectively, for a total purchase price of $52,137 and $47,921, 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 July 2, 2023 and March 31, 2023, the Company had entered into a total of $44,760 and $45,823, respectively, of such contracts. Interest Rate Swap Agreements The Company is exposed to changes in variable interest rates on borrowings under our credit agreement. On a selective basis, from time to time, it enters into interest rate swap agreements to reduce the negative impact that increases in interest rates could have on our outstanding variable rate debt. At July 2, 2023 and March 31, 2023 such agreements effectively convert $200,000 of our variable-rate debt to a fixed-rate basis, utilizing the one-month term SOFR, as a floating rate reference. Fluctuations in SOFR and fixed rates affect both our net financial investment position and the amount of cash to be paid or received by us under these agreements. Derivatives in Net Investment Hedging Relationships Net Investment Hedges The Company uses cross currency fixed interest rate swaps to hedge its net investments in foreign operations against future volatility in the exchange rates between the U.S. Dollar and Euro. On December 23, 2021, the Company entered into cross currency fixed interest rate swap agreements, with aggregate notional amounts of $300,000, to hedge its net investments in foreign operations against future volatility in the exchange rates between U.S. dollars and euros. On September 29, 2022, the Company terminated its $300,000 cross-currency fixed interest rate swap contracts, originally entered into on December 23, 2021, and received a net settlement of $43,384. On September 29, 2022, the Company entered into cross-currency fixed interest rate swap contracts with an aggregate notional amount of $150,000, maturing on December 15, 2027. The cross-currency fixed interest rate swap contracts qualify for hedge accounting as a net investment hedging instrument, which allows for them to be remeasured to foreign currency translation adjustment within AOCI (“Accumulated Other Comprehensive Income”) to offset the translation risk from those investments. Balances in the foreign currency translation adjustment accounts remain until the sale or substantially complete liquidation of the foreign entity, upon which they are recognized as a component of income (expense). Impact of Hedging Instruments on AOCI In the coming twelve months, the Company anticipates that $5,069 of pretax (gain) relating to lead, foreign currency forward contracts and net investment hedges will be reclassified from AOCI as part of cost of goods sold and interest expense. This amount represents the current net unrealized impact of hedging lead, foreign exchange rates and interest rates, which will change as market rates change in the future. This amount will ultimately be realized in the Consolidated Condensed Statements of Income as an offset to the corresponding actual changes in lead, foreign exchange rates and interest costs resulting from variable lead cost, foreign exchange and interest rates 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 July 2, 2023 and March 31, 2023, the notional amount of these contracts was $75,798 and $102,558, 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 July 2, 2023 and March 31, 2023
The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 2, 2023
The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 3, 2022
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Income Taxes |
3 Months Ended |
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Jul. 02, 2023 | |
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 2024 and 2023 was based on the estimated effective tax rates applicable for the full years ending March 31, 2024 and March 31, 2023, 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, changes in tax laws and the amount of the Company's consolidated earnings before taxes. On August 16, 2022, the Inflation Reduction Act of 2022 (“IRA”) was enacted. The IRA includes multiple incentives to promote clean energy, and energy storage manufacturing among other provisions with tax credits available from 2023 to 2032, subject to phase down beginning in 2030. In particular the IRA creates a refundable tax credit, pursuant to Section 45X of the Internal Revenue Code (“IRC”), for battery cells and battery modules manufactured or assembled in the United States and sold to third parties. In the first quarter of fiscal 2024, the IRA impact resulted in a reduction of our costs of goods sold and income tax payable. There is a possibility that additional clarification guidance is issued with respect to the Section 45X credit qualifications. Amounts recognized in the Consolidated Condensed Financial Statements are based on Management's judgement and best estimate utilizing the most current guidance. The Company will continue to evaluate the effects of IRA as more guidance is issued and the relevant implications to our Consolidated Condensed Financial Statements. Actual results could differ from management’s current estimate. The consolidated effective income tax rates for the first quarter of fiscal 2024 and 2023 were 9.2% and 15.7%. The rate decrease in the first quarter compared to the prior year quarter is primarily due to the impact of the IRA. In addition, there was a discrete foreign exchange tax benefit related to undistributed earnings which was offset by the mix of earnings among tax jurisdictions. Foreign income as a percentage of worldwide income is estimated to be 51% for fiscal 2024 compared to 77% for fiscal 2023. This reduction is primarily due to the impact of the IRA. The foreign effective tax rates for the current quarter of fiscal 2024 and 2023 were 12% and 11%, respectively. Income from the Company's Swiss subsidiary comprised a substantial portion of the Company's overall foreign mix of income for both fiscal 2024 and fiscal 2023 and were taxed at an effective income tax rate of approximately 8% and 9%, respectively.
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Warranty |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty | Warranty The Company provides for estimated product warranty expenses when 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, costs of claims 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 |
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Jul. 02, 2023 | |
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. For additional information regarding these matters, see Note 19 - Commitments, Contingencies and Litigation to the Consolidated Financial Statements contained in the 2023 Annual Report. As of July 2, 2023 and March 31, 2023, the Company did not have a reserve balance related to these matters. 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 believes that it has adequate reserves to satisfy its environmental liabilities. Lead, Foreign Currency Forward Contracts and Swaps To stabilize its lead costs and reduce volatility from currency and interest rate movements, the Company entered into contracts with financial institutions. The vast majority of lead and foreign currency contracts are for a period not extending beyond one year. The Company also entered into a cross currency fixed interest rate swap agreement, maturing on December 15, 2027, to hedge its net investments in foreign operations against future volatility in the exchange rates between the U.S. Dollar and Euro. The Company also entered into floating to fixed interest rate swap agreements maturing on September 30, 2026, to hedge its exposure to variable interest rates. Please refer to Note 6 - Derivative Financial Instruments for more details.
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Restructuring and other Exit Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and other Exit Charges | Restructuring and other Exit Charges Restructuring Programs As disclosed in the 2023 Annual Report, the Company committed to restructuring plans aimed at improving operational efficiencies across its lines of business. A substantial portion of these plans are complete with an estimated $432 remaining to be incurred by the end of fiscal 2024, mainly related to plans started in fiscal 2021 and fiscal 2022. Restructuring and exit charges for the first quarter of fiscal 2024 by reportable segments are as follows:
A roll-forward of the restructuring reserve, excluding exit charges, is as follows:
Exit Charges Fiscal 2023 Programs Sylmar In November 2022, the Company committed to a plan to close its facility in Sylmar, California, which manufactures specialty lithium batteries for aerospace and medical applications. Management determined to close the site upon the expiration of its lease on the property and to redirect production through consolidation into existing locations. The Company currently estimates total charges in the exit to amount to $9,460. Cash charges are estimated to total $5,700 primarily relating to severance and other costs to leave the site. Non-cash charges are estimated to be $3,760 relating to fixed assets, inventory, and contract assets. The plan is expected to be completed in fiscal 2024. During fiscal 2023, the Company recorded cash charges of $1,682 related primarily related to severance costs and non-cash charges totaling $417 primarily relating to contract assets. During the current quarter of fiscal 2024, the Company recorded cash charges of $4,017 primarily related to severance costs, relocation expenses, and manufacturing variances and non-cash charges totaling $245. The Company also recorded a non-cash write off relating to inventories of $3,098, which was reported in cost of goods sold. Ooltewah On June 29, 2022, the Company committed to a plan to close its facility in Ooltewah, Tennessee, which produced flooded motive power batteries for electric forklifts. Management determined that future demand for traditional motive power flooded cells will decrease as customers transition to maintenance free product solutions in lithium and TPPL. The Company currently estimates that the total charges for these actions will amount to approximately $18,500. Cash charges for employee severance related payments, cleanup related to the facility, contractual releases and legal expenses are estimated to be $9,200 and non-cash charges from inventory and fixed asset write-offs are estimated to be $9,300. These actions will result in the reduction of approximately 165 employees. The plan is expected to be completed in calendar 2023. During fiscal 2023, the Company recorded cash charges relating to severance and manufacturing variances of $2,735 and non-cash charges of $7,261 relating to fixed asset write-offs. The Company also recorded a non-cash write off relating to inventories of $1,613, which was reported in cost of goods sold. During the current quarter of fiscal 2024, the Company recorded cash charges relating to site clean up and decommissioning equipment of $881. Fiscal 2021 Program Hagen, Germany In fiscal 2021, the Company's Board of Directors approved a plan to close substantially all of its facility in Hagen, Germany, which produced flooded motive power batteries for electric forklifts. Management determined that future demand for the motive power batteries produced at this facility was not sufficient, given the conversion from flooded to maintenance free batteries by customers, the existing number of competitors in the market, as well as the near term decline in demand and increased uncertainty from the pandemic. The Company plans to retain the facility with limited sales, service and administrative functions along with related personnel for the foreseeable future. The Company currently estimates that the total charges for these actions will amount to approximately $60,000, of which cash charges for employee severance related payments, cleanup related to the facility, contractual releases and legal expenses were estimated to be $40,000 and non-cash charges from inventory and equipment write-offs were estimated to be $20,000. The majority of these charges were recorded as of January 1, 2023. These actions resulted in the reduction of approximately 200 employees. During fiscal 2021, the Company recorded cash charges relating to severance of $23,331 and non-cash charges of $7,946 primarily relating to fixed asset write-offs. During fiscal 2022, the Company recorded cash charges primarily relating to severance of $8,069 and non-cash charges of $3,522 primarily relating to fixed asset write-offs. The Company also recorded a non-cash write off relating to inventories of $960, which was reported in cost of goods sold. During fiscal 2023, the Company recorded cash charges of $2,207 relating to primarily to site cleanup and $562 of non-cash charges relating to accelerated depreciation of fixed assets. During the current quarter of fiscal 2024, the Company recorded cash charges of $485 relating primarily to site cleanup and $143 of non-cash charges relating to accelerated depreciation of fixed assets.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt The following summarizes the Company’s long-term debt as of July 2, 2023 and March 31, 2023:
The Company's Senior Notes comprise the following: 4.375% Senior Notes due 2027 On December 11, 2019, the Company issued $300,000 in aggregate principal amount of its 4.375% Senior Notes due December 15, 2027 (the “2027 Notes”). Proceeds from this offering, net of debt issuance costs were $296,250 and were utilized to pay down the Amended 2017 Revolver (defined below). The 2027 Notes bear interest at a rate of 4.375% per annum accruing from December 11, 2019. Interest is payable semiannually in arrears on June 15 and December 15 of each year, commencing on June 15, 2020. The 2027 Notes mature on December 15, 2027, unless earlier redeemed or repurchased in full and are unsecured and unsubordinated obligations of the Company. They are fully and unconditionally guaranteed, jointly and severally, by certain of its subsidiaries that are guarantors under the Fourth Amended Credit Facility (defined below). These guarantees are unsecured and unsubordinated obligations of such guarantors. The Company may redeem, prior to September 15, 2027, all or a portion of the 2027 Notes at a price equal to 100% of the principal amount of the 2027 Notes to be redeemed, plus accrued and unpaid interest and a “make whole” premium to, but excluding, the redemption date. The Company may redeem, on or after September 15, 2027, all or a portion of the 2027 Notes at a price equal to 100% of the principal amount of the 2027 Notes, plus accrued and unpaid interest to, but excluding, the redemption date. If a change of control triggering event occurs, the Company will be required to offer to repurchase the 2027 Notes at a price in cash equal to 101% of the aggregate principal amount of the 2027 Notes, plus accrued and unpaid interest to, but excluding, the date of repurchase. 2017 Credit Facility and Subsequent Amendments In fiscal 2018, the Company entered into a credit facility (the “2017 Credit Facility”). The 2017 Credit Facility was scheduled to mature on September 30, 2022, initially 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 consisted of $449,105 senior secured term loans (the “Amended Term Loan”), including a CAD 133,050 ($99,105) senior secured term loan and a $700,000 senior secured revolving credit facility (the “Amended Revolver”). The amendment resulted in an increase of the 2017 Term Loan and the 2017 Revolver by $299,105 and $100,000, respectively. During the second quarter of fiscal 2022, the Company entered into a second amendment to the 2017 Credit Facility (as amended, the “Second Amended Credit Facility”). The Second Amended Credit Facility, scheduled to mature on September 30, 2026, consists of a $130,000 senior secured term loan (the “Second Amended Term Loan”), a CAD 106,440 ($84,229) senior secured term loan and an $850,000 senior secured revolving credit facility (the “Second Amended Revolver”). The second amendment resulted in a decrease of the Amended Term Loan by $150,000 and an increase of the Amended Revolver by $150,000. During the second quarter of fiscal 2023, the Company entered into a third amendment to the 2017 Credit Facility (as amended, the “Third Amended Credit Facility”). The Third Amended Credit Facility provides a new incremental delayed-draw senior secured term loan up to $300,000 (the “Third Amended Term Loan”), which shall be available to draw at any time until March 15, 2023. Once drawn, the funds will mature on September 30, 2026, the same as the Company's Second Amended Term loan and Second Amended Revolver. In connection with the agreement, the Company incurred $1,161 in third party administrative and legal fees recognized in interest expense and capitalized $1,096 in charges from existing lenders as a deferred asset. During the fourth quarter, the Company drew $300,000 in the form of the Third Amended Term Loan. Additionally, the Company derecognized the capitalized deferred asset and recognized the $1,096 as deferred financing costs. During the fourth quarter of fiscal 2023, the Company entered into a fourth amendment to the 2017 Credit Facility (as amended, the “Fourth Amended Credit Facility”). The Fourth Amended Credit Facility replaces the London Interbank Offered Rate (“LIBOR”) with the Secured Overnight Financing Rate (“SOFR”) in the calculation of interest for both the Second Amended Revolver and the Second Amended Term Loan. Subsequent to the fourth amendment, the quarterly installments payable on the Second Amended Term Loan are 2,630 beginning December 31, 2022, 3,945 beginning December 31, 2024 and 5,261 beginning December 31, 2025 with a final payment of 157,817 on September 30, 2026. The Fourth Amended Credit Facility may be increased by an aggregate amount of $350,000 in revolving commitments and /or one or more new tranches of term loans, under certain conditions. Both the Second Amended Revolver and the Second Amended Term Loan bear interest, at the Company's option, at a rate per annum equal to either (i) the SOFR or Canadian Dollar Offered Rate (“CDOR”) plus (i) Term SOFR plus between 1.125% and 2.25% (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%. The quarterly installments payable on the Third Amended Term Loan are $3,750 beginning June 30, 2023, $5,625 beginning December 31, 2024 and $7,500 beginning December 31, 2025 with a final payment of $232,500 on September 30, 2026. The Third Amended Term Loan bears interest, at the Company's option, at a rate per annum equal to either (i) SOFR plus 10 basis points plus (i) Term SOFR plus between 1.375% and 2.50% (currently 1.50% and based on the Company's consolidated net leverage ratio) or (ii) the U.S. Dollar Base Rate plus between 0.375% and 1.50%, 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 Term SOFR plus 1%; provided that, if the Base Rate shall be less than zero, such rate shall be deemed zero). Until the funds were drawn on March 13, 2023, the Company paid a commitment fee of 0.175% to 0.35% at a rate per annum on the unused portion. Obligations under the Fourth 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 Fourth Amended 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 Fourth Amended Credit Facility allows for up to two temporary increases in the maximum leverage ratio to 4.50x from 4.00x to 4.25x for a four quarter period following an acquisition larger than $250,000. Effective with the Fourth Amended Credit Facility, the maximum leverage ratio increased from 3.50x to 4.25x effective to the last day of the second quarter of fiscal year 2024 and decreasing subsequently to 4.00x. As of July 2, 2023, the Company had $115,000 outstanding under the Second Amended Revolver, $498,782 under the Second Amended Term Loan, and $300,000 outstanding under the Third Amended Term Loan. Current Portion of Debt The scheduled repayments within the next twelve months, relating to the Second and Third Amended Term Loans, are $10,521 and $15,000, respectively, and is classified as long-term debt, as the Company expects to refinance the future quarterly payments with revolver borrowings under the Second Amended Credit Facility. Short-Term Debt As of July 2, 2023 and March 31, 2023, the Company had $30,962 and $30,642, respectively, of short-term borrowings. The weighted average interest rate on these borrowings was approximately 6.6% and 7.0%, respectively, at July 2, 2023 and March 31, 2023. Letters of Credit As of July 2, 2023 and March 31, 2023, the Company had $3,665 and $3,565 of standby letters of credit, respectively. Debt Issuance Costs In connection with the Second Amended Credit Facility, the Company capitalized $2,952 in debt issuance costs and wrote off $128 of unamortized debt issuance costs. Amortization expense, relating to debt issuance costs, included in interest expense was $410 and $487, respectively, for the first quarter ended July 2, 2023 and July 3, 2022, respectively. Debt issuance costs, net of accumulated amortization, totaled $6,014 and $6,424, respectively, at July 2, 2023 and March 31, 2023. Available Lines of Credit As of July 2, 2023 and March 31, 2023, the Company had available and undrawn, under all its lines of credit, $823,925 and $693,444, respectively, including $91,320 and $90,839, respectively, of uncommitted lines of credit.
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Retirement Plans |
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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 |
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Jul. 02, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of July 2, 2023, the Company maintains the 2017 Equity Incentive Plan as amended from time to time (“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 on total shareholder return (“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 $7,933 for the first quarter of fiscal 2024 and $5,330 for the first quarter of fiscal 2023. The Company recognizes compensation expense using the straight-line method over the vesting period of the awards. During the current quarter of fiscal 2024, the Company granted to non-employee directors 2,301 restricted stock units, under the deferred compensation plan for non-employee directors. The awards vest immediately upon the date of grant and are settled in shares of common stock. During the current quarter of fiscal 2024, the Company granted to management and other key employees 7,215 restricted stock units that vest ratably over four years from the date of grant. Common stock activity during the current quarter of fiscal 2024 included the exercise of 152,963 stock options. As of July 2, 2023, there were 1,042,705 non-qualified stock options, 1,020,365 restricted stock units including non-employee director restricted stock units and 31,706 TSRs outstanding.
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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 current quarter ended July 2, 2023:
Treasury Stock During the first quarter ended July 2, 2023, the Company did not purchase any shares and purchased 358,365 shares for $22,907 the first quarter ended July 3, 2022. At July 2, 2023 and March 31, 2023, the Company held 15,099,676 and 15,103,554 shares as treasury stock, respectively. During the current quarter ended July 2, 2023, the Company also issued 3,878 shares out of its treasury stock, valued at $62.55 per share, on a LIFO basis, to participants under the Company's Employee Stock Purchase Plan. Accumulated Other Comprehensive Income (“AOCI ”) The components of AOCI, net of tax, as of July 2, 2023 and March 31, 2023, are as follows:
(1) Foreign currency translation adjustment for the current quarter ended July 2, 2023 includes a $2,224 gain (net of taxes of $678) related to the Company's $150,000 cross-currency fixed interest rate swap contract. The following table presents reclassifications from AOCI during the first quarter ended July 2, 2023:
The following table presents reclassifications from AOCI during the first quarter ended July 3, 2022:
The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter and current quarter ended July 2, 2023:
The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter and current quarter ended July 3, 2022:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Effective April 1, 2023, the Company created a new line of business and operating segment named New Ventures in addition to the existing lines of businesses: Energy Systems, Motive Power, and Specialty. The results of New Ventures include start-up operating expenses captured within the "Corporate and other" category of operating earnings. New Ventures provides energy storage and management systems for demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. Summarized financial information related to the Company's reportable segments for the first quarter ended July 2, 2023 and July 3, 2022, is shown below:
(1) Reportable segments do not record inter-segment revenues and accordingly there are none to report. (2) The Company does not allocate interest expense or other (income) expense, net, to the reportable segments. (3) Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRA production tax credits. Also, included are start up costs for exploration of a new lithium plant as well as start-up operating expenses from the New Ventures operating segment.
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Subsequent Events |
3 Months Ended |
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Jul. 02, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn August 9, 2023, the Board of Directors approved a quarterly cash dividend of $0.225 per share of common stock to be paid on September 29, 2023 to stockholders of record as of September 15, 2023. |
Basis of Presentation (Policies) |
3 Months Ended |
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Jul. 02, 2023 | |
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 current quarter ended July 2, 2023 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2024. The Consolidated Condensed Balance Sheet at March 31, 2023 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 2023 Annual Report on Form 10-K (SEC File No. 001-32253), which was filed on May 25, 2023 (the “2023 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 2024 end on July 2, 2023, October 1, 2023, December 31, 2023, and March 31, 2024, respectively. The four quarters in fiscal 2023 ended on July 3, 2022, October 2, 2022, January 1, 2023, and March 31, 2023, 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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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions take into account historical and forward looking factors that the Company believes are reasonable, and the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ from those estimates. Examples of significant estimates include the allowance for credit losses, the recoverability of property, plant and equipment, the incremental borrowing rate for lease liabilities, the recoverability of intangible assets and other long-lived assets, fair value measurements, including those related to financial instruments, goodwill and intangible assets, valuation allowances on tax assets, pension and postretirement benefit obligations, contingencies and the identification and valuation of assets acquired and liabilities assumed in connection with business combinations.
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Accounts Receivable (Tables) |
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Jul. 02, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts Receivable
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Inventories (Tables) |
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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Inventories |
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Fair Value of Financial Instruments (Tables) |
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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 July 2, 2023 and March 31, 2023, 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 Senior Notes at July 2, 2023 and March 31, 2023 were as follows:
(1)Represents lead, foreign currency forward contracts, interest rate swaps, and net investment hedges (see Note 6 for asset and liability positions of the lead, foreign currency forward contracts, interest rate swaps, and net investment hedges at July 2, 2023 and March 31, 2023). (2)The fair value amount of the Senior Notes at July 2, 2023 and March 31, 2023 represent the trading value of the instruments.
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Derivative Financial Instruments (Tables) |
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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 July 2, 2023 and March 31, 2023
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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 July 2, 2023
The Effect of Derivative Instruments on the Consolidated Condensed Statements of Income For the quarter ended July 3, 2022
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Warranty (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 and other Exit Charges (Tables) |
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Reconciliation of Restructuring Reserve | Restructuring and exit charges for the first quarter of fiscal 2024 by reportable segments are as follows:
A roll-forward of the restructuring reserve, excluding exit charges, is as follows:
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Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Debt And Capital Lease Obligations | The following summarizes the Company’s long-term debt as of July 2, 2023 and March 31, 2023:
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Retirement Plans (Tables) |
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Jul. 02, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 current quarter ended July 2, 2023:
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Components Of Accumulated Other Comprehensive Income | The components of AOCI, net of tax, as of July 2, 2023 and March 31, 2023, 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 July 2, 2023:
The following table presents reclassifications from AOCI during the first quarter ended July 3, 2022:
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Schedule of Change in Stockholders Equity | The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter and current quarter ended July 2, 2023:
The following demonstrates the change in equity attributable to EnerSys stockholders and nonredeemable noncontrolling interests during the first quarter and current quarter ended July 3, 2022:
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Earnings Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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Jul. 02, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 July 2, 2023 and July 3, 2022, is shown below:
(1) Reportable segments do not record inter-segment revenues and accordingly there are none to report. (2) The Company does not allocate interest expense or other (income) expense, net, to the reportable segments. (3) Corporate and other includes amounts managed on a company-wide basis and not directly allocated to any reportable segments, primarily relating to IRA production tax credits. Also, included are start up costs for exploration of a new lithium plant as well as start-up operating expenses from the New Ventures operating segment.
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Revenue Recognition - (Additional Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
Mar. 31, 2023 |
|
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 908,569 | $ 898,971 | |
Contract with customer, liability, current portion | 29,822 | $ 34,594 | |
Contract with customer, liability, noncurrent portion | 974 | 1,437 | |
Revenue recognized | 12,391 | 4,590 | |
Unbilled contracts receivable | 56,177 | $ 48,616 | |
Right to recover product | 4,748 | ||
Refund liability | 8,317 | ||
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 58,654 | 57,004 | |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 100,922 | $ 99,824 |
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands |
Jul. 02, 2023 |
Mar. 31, 2023 |
---|---|---|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Accounts receivable | $ 575,531 | $ 646,592 |
Allowance for doubtful accounts | 9,033 | 8,775 |
Accounts receivable, net | $ 566,498 | $ 637,817 |
Accounts Receivable - Additional Information (Details) |
Jul. 02, 2023
USD ($)
|
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Receivables [Abstract] | |
Accounts receivable, selling, maximum amount | $ 150,000 |
Accounts receivable sold to financial institution | 182,391 |
Accounts receivable sold to financial institution, net proceeds | 182,391 |
Accounts receivable sold to financial institution, proceeds collected | 183,352 |
Accounts receivables, collateralized | $ 228,154 |
Inventories - (Details) - USD ($) $ in Thousands |
Jul. 02, 2023 |
Mar. 31, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 316,477 | $ 323,418 |
Work-in-process | 119,320 | 123,401 |
Finished goods | 373,605 | 350,979 |
Total | $ 809,402 | $ 797,798 |
Fair Value of Financial Instruments - (Additional Information) (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jul. 02, 2023 |
Mar. 31, 2023 |
Mar. 31, 2021 |
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Fixed Asset Write-Off | Closure Of Facility In Ooltewah, Tennessee | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Restructuring charges | $ 7,300 | ||
4.375% Senior Notes due 2027 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate | 4.375% | ||
Long-term debt | $ 300,000 | ||
Face value of trades, percentage | 92.00% | 92.00% |
Fair Value of Financial Instruments - (Carrying Amounts and Estimated Fair Values) (Details) - USD ($) $ in Thousands |
Jul. 02, 2023 |
Mar. 31, 2023 |
---|---|---|
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivatives, Financial assets | $ 0 | $ 0 |
Senior Notes, Financial liabilities | 300,000 | 300,000 |
Derivatives | (15,391) | (16,088) |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivatives, Financial assets | 0 | 0 |
Senior Notes, Financial liabilities | 276,750 | 276,000 |
Derivatives | $ (15,391) | $ (16,088) |
Derivative Financial Instruments - (Derivatives Not Designated as Hedging Instruments) (Details) - Derivatives Not Designated as Hedging Instruments - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
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Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives Not Designated as Hedging Instruments | $ (503) | $ 216 |
Other (income) expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivatives Not Designated as Hedging Instruments | $ (503) | $ 216 |
Income Taxes - (Additional Information) (Details) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
Jan. 01, 2023 |
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Income Tax Disclosure [Abstract] | |||
Effective income tax rates | 9.20% | 15.70% | |
Foreign income as a percentage of worldwide income | 51.00% | 77.00% | |
Foreign effective income tax rates | 12.00% | 11.00% | |
Tax rate of Swiss subsidiary | 8.00% | 9.00% |
Warranty - (Analysis of Changes in the Liability) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
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Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 56,630 | $ 54,978 |
Current period provisions | 8,685 | 4,940 |
Costs incurred | (7,446) | (5,744) |
Foreign currency translation adjustment | 569 | (1,220) |
Balance at end of period | $ 58,438 | $ 52,954 |
Restructuring and other Exit Charges - (Roll-forward of Restructuring and Other Exit Charges) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
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Restructuring Reserve [Roll Forward] | ||
Restructuring and other exit charges | $ 6,309 | $ 8,328 |
Employee Severance | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 488 | |
Exit charges | 5,821 | |
Restructuring and other exit charges | 6,309 | |
Employee Severance | Energy Systems | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 488 | |
Exit charges | 0 | |
Restructuring and other exit charges | 488 | |
Employee Severance | Motive Power | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 0 | |
Exit charges | 1,559 | |
Restructuring and other exit charges | 1,559 | |
Employee Severance | Specialty | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring charges | 0 | |
Exit charges | 4,262 | |
Restructuring and other exit charges | $ 4,262 |
Restructuring and other Exit Charges - (Roll-forward of Restructuring Reserve) (Details) - Employee Severance $ in Thousands |
3 Months Ended |
---|---|
Jul. 02, 2023
USD ($)
| |
Restructuring Reserve [Roll Forward] | |
Restructuring reserve, beginning balance | $ 445 |
Costs incurred | (505) |
Foreign currency impact | 4 |
Restructuring reserve, ending balance | 432 |
Restructuring and Related Cost, Incurred Cost | $ 488 |
Debt - (Long-term Debt Including Capital Lease Obligations) (Details) - USD ($) $ in Thousands |
Jul. 02, 2023 |
Mar. 31, 2023 |
---|---|---|
Debt Instrument [Line Items] | ||
Debt and lease obligation | $ 913,782 | $ 1,048,413 |
Unamortized Issuance Costs | 6,014 | 6,424 |
Long-term debt, net of unamortized issuance costs | 907,768 | 1,041,989 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 300,000 | 300,000 |
Unamortized Issuance Costs | 2,561 | 2,705 |
Fourth Amended Credit Facility, due 2026 | Fourth Amended Credit Facility, due 2026 | ||
Debt Instrument [Line Items] | ||
Incremental term loan commitment | 613,782 | 748,413 |
Unamortized Issuance Costs | $ 3,453 | $ 3,719 |
Debt - (Senior Notes - Narrative) (Details) - Senior Notes - USD ($) $ in Thousands |
Dec. 11, 2019 |
Jul. 02, 2023 |
Mar. 31, 2023 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Long-term debt | $ 300,000 | $ 300,000 | |
4.375% Senior Notes due 2027 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.375% | ||
Long-term debt | $ 300,000 | ||
Proceeds from issuance of debt, net of debt issuance costs | $ 296,250 | ||
4.375% Senior Notes due 2027 | Redemption Period One | |||
Debt Instrument [Line Items] | |||
Redemption percentage | 100.00% | ||
4.375% Senior Notes due 2027 | Redemption Period Two | |||
Debt Instrument [Line Items] | |||
Redemption percentage | 100.00% | ||
4.375% Senior Notes due 2027 | Redemption Period Three | |||
Debt Instrument [Line Items] | |||
Redemption percentage | 101.00% |
Retirement Plans - (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
|
United States Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 166 | 145 |
Expected return on plan assets | (76) | (119) |
Amortization and deferral | 0 | 0 |
Net periodic benefit cost | 90 | 26 |
International Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 220 | 235 |
Interest cost | 585 | 440 |
Expected return on plan assets | (406) | (517) |
Amortization and deferral | 29 | 123 |
Net periodic benefit cost | $ 428 | $ 281 |
Stockholders' Equity and Noncontrolling Interests - (Change in the Number of Shares of Common Stock Outstanding) (Details) - shares |
3 Months Ended | |
---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
|
Common Stock Outstanding Roll Forward | ||
Shares outstanding, beginning balance (in shares) | 40,901,059 | |
Purchase of treasury stock (in shares) | (358,365,000) | |
Shares issued towards equity-based compensation plans, net of equity awards surrendered for option price and taxes (in shares) | 128,975 | |
Shares outstanding, ending balance (in shares) | 41,030,034 |
Stockholders' Equity and Noncontrolling Interests - (Treasury Stock) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
Mar. 31, 2023 |
|
Equity [Abstract] | |||
Purchase of treasury stock (in shares) | 358,365,000 | ||
Treasury stock, value, acquired | $ 0 | $ 22,907 | |
Treasury stock, shares (in shares) | 15,099,676 | 15,103,554 | |
Treasury shares issued (in shares) | 3,878 | ||
Treasury shares issued (in dollars per share) | $ 62.55 |
Earnings Per Share - (Reconciliation from Basic to Diluted Average Common Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
---|---|---|
Jul. 02, 2023 |
Jul. 03, 2022 |
|
Earnings Per Share [Abstract] | ||
Net earnings attributable to EnerSys stockholders | $ 66,797 | $ 30,978 |
Basic weighted-average number of common shares outstanding (in shares) | 40,937,334 | 40,786,336 |
Common shares from exercise and lapse of equity awards, net of shares assumed reacquired (in shares) | 760,990 | 566,310 |
Diluted weighted-average number of common shares outstanding (in shares) | 41,698,324 | 41,352,646 |
Basic earnings per common share attributable to EnerSys stockholders (in dollars per share) | $ 1.63 | $ 0.76 |
Diluted earnings per common share attributable to EnerSys stockholders (in dollars per share) | $ 1.60 | $ 0.75 |
Anti-dilutive equity awards not included in diluted weighted-average common shares (in shares) | 432,487 | 1,002,352 |
Subsequent Events - (Additional Information) (Details) |
Aug. 09, 2023
$ / shares
|
---|---|
Subsequent Event | |
Subsequent Event [Line Items] | |
Common stock dividends (in dollars per share) | $ 0.225 |
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