(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
x | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Title of each class | Trading Symbol(s) | Name of each exchange on which is registered | ||||||
Three Months Ended March 31, | ||||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | ||||||||||||
Net sales | $ | $ | ||||||||||||
Cost of products sold | ||||||||||||||
Gross profit | ||||||||||||||
Selling, general and administrative | ||||||||||||||
Research and development | ||||||||||||||
Restructuring charges (Note 3) | ||||||||||||||
Currency exchange losses (gains), net | ( | |||||||||||||
Product liability expense (Note 18) | ||||||||||||||
Operating income | ||||||||||||||
Interest expense | ||||||||||||||
Other income, net | ( | ( | ||||||||||||
Total other income, net | ( | ( | ||||||||||||
Income before income taxes | ||||||||||||||
Provision for income taxes (Note 10) | ||||||||||||||
Net income | ||||||||||||||
Net income attributable to noncontrolling interests | ( | |||||||||||||
Net income attributable to MSA Safety Incorporated | $ | $ | ||||||||||||
Earnings per share attributable to MSA Safety Incorporated common shareholders (Note 9): | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ | ||||||||||||
Dividends per common share | $ | $ | ||||||||||||
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Net income | $ | $ | ||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||
Foreign currency translation adjustments (Note 6) | ( | |||||||||||||
Pension and post-retirement plan actuarial gains, net of tax (Note 6) | ||||||||||||||
Unrealized losses on available-for-sale securities (Note 6) | ( | ( | ||||||||||||
Total other comprehensive income (loss), net of tax | ( | |||||||||||||
Comprehensive income | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | ( | |||||||||||||
Comprehensive income attributable to MSA Safety Incorporated | $ | $ | ||||||||||||
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Trade receivables, less allowance for credit loss of $ | ||||||||||||||
Inventories (Note 4) | ||||||||||||||
Investments, short-term (Note 17) | ||||||||||||||
Prepaid income taxes | ||||||||||||||
Notes receivable, insurance companies (Note 18) | ||||||||||||||
Prepaid expenses and other current assets | ||||||||||||||
Total current assets | ||||||||||||||
Property, plant and equipment, net (Note 5) | ||||||||||||||
Operating lease right-of-use assets, net | ||||||||||||||
Prepaid pension cost (Note 15) | ||||||||||||||
Deferred tax assets (Note 10) | ||||||||||||||
Goodwill (Note 13) | ||||||||||||||
Intangible assets, net (Note 13) | ||||||||||||||
Notes receivable, insurance companies, noncurrent (Note 18) | ||||||||||||||
Insurance receivables (Note 18) and other noncurrent assets | ||||||||||||||
Total assets | $ | $ | ||||||||||||
Liabilities | ||||||||||||||
Notes payable and current portion of long-term debt (Note 12) | $ | $ | ||||||||||||
Accounts payable | ||||||||||||||
Employees’ compensation | ||||||||||||||
Insurance and product liability (Note 18) | ||||||||||||||
Income taxes payable (Note 10) | ||||||||||||||
Accrued restructuring and other current liabilities | ||||||||||||||
Total current liabilities | ||||||||||||||
Long-term debt, net (Note 12) | ||||||||||||||
Pensions (Note 15) and other employee benefits | ||||||||||||||
Noncurrent operating lease liabilities | ||||||||||||||
Deferred tax liabilities (Note 10) | ||||||||||||||
Product liability (Note 18) and other noncurrent liabilities | ||||||||||||||
Total liabilities | $ | $ | ||||||||||||
Equity | ||||||||||||||
Preferred stock, | $ | $ | ||||||||||||
Common stock, no par value (Note 7) | ||||||||||||||
Treasury shares, at cost (Note 7) | ( | ( | ||||||||||||
Accumulated other comprehensive loss (Note 6) | ( | ( | ||||||||||||
Retained earnings | ||||||||||||||
Total shareholders’ equity | ||||||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Operating Activities | ||||||||||||||
Net income | $ | $ | ||||||||||||
Depreciation and amortization | ||||||||||||||
Stock-based compensation (Note 11) | ||||||||||||||
Pension expense (Note 15) | ( | ( | ||||||||||||
Deferred income tax benefit (Note 10) | ( | ( | ||||||||||||
Loss on asset dispositions, net | ||||||||||||||
Pension contributions (Note 15) | ( | ( | ||||||||||||
Currency exchange losses (gains), net | ( | |||||||||||||
Product liability expense (Note 18) | ||||||||||||||
Collections on insurance receivables and notes receivable, insurance companies (Note 18) | ||||||||||||||
Product liability payments (Note 18) | ( | ( | ||||||||||||
Changes in: | ||||||||||||||
Trade receivables | ||||||||||||||
Inventories (Note 4) | ( | ( | ||||||||||||
Accounts payable | ||||||||||||||
Other current assets and liabilities | ( | ( | ||||||||||||
Other noncurrent assets and liabilities | ( | |||||||||||||
Cash Flow From Operating Activities | ||||||||||||||
Investing Activities | ||||||||||||||
Capital expenditures | ( | ( | ||||||||||||
Acquisition, net of cash acquired (Note 14) | ( | |||||||||||||
Purchase of short-term investments (Note 17) | ( | ( | ||||||||||||
Proceeds from maturities of short-term investments (Note 17) | ||||||||||||||
Property disposals and other investing | ||||||||||||||
Cash Flow From (Used in) Investing Activities | ( | |||||||||||||
Financing Activities | ||||||||||||||
Proceeds from long-term debt (Note 12) | ||||||||||||||
Payments on long-term debt (Note 12) | ( | ( | ||||||||||||
Cash dividends paid | ( | ( | ||||||||||||
Company stock purchases (Note 7) | ( | ( | ||||||||||||
Exercise of stock options (Note 7) | ||||||||||||||
Cash Flow (Used In) From Financing Activities | ( | |||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | ||||||||||||
Increase in cash, cash equivalents and restricted cash | ||||||||||||||
Beginning cash, cash equivalents and restricted cash | ||||||||||||||
Ending cash, cash equivalents and restricted cash | $ | $ | ||||||||||||
Supplemental cash flow information: | ||||||||||||||
Cash and cash equivalents | $ | $ | ||||||||||||
Restricted cash included in prepaid expenses and other current assets | ||||||||||||||
Total cash, cash equivalents and restricted cash | $ | $ | ||||||||||||
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. |
(In thousands) | Retained Earnings | Accumulated Other Comprehensive (Loss) | Noncontrolling Interests | ||||||||||||||
Balances December 31, 2020 | $ | $ | ( | $ | |||||||||||||
Net income | — | — | |||||||||||||||
Foreign currency translation adjustments | — | ( | — | ||||||||||||||
Pension and post-retirement plan adjustments, net of tax of $ | — | — | |||||||||||||||
Unrecognized net losses on available-for-sale securities (Note 17) | — | ( | — | ||||||||||||||
Income attributable to noncontrolling interests | ( | ( | |||||||||||||||
Common dividends | ( | — | — | ||||||||||||||
Preferred dividends ($ | ( | — | — | ||||||||||||||
Balances March 31, 2021 | $ | $ | ( | $ | |||||||||||||
Balances December 31, 2021 | $ | $ | ( | $ | |||||||||||||
Net income | — | — | |||||||||||||||
Foreign currency translation adjustments | — | — | |||||||||||||||
Pension and post-retirement plan adjustments, net of tax of $ | — | — | |||||||||||||||
Unrecognized net losses on available-for-sale securities (Note 17) | — | ( | — | ||||||||||||||
Common dividends | ( | — | — | ||||||||||||||
Preferred dividends ($ | ( | — | — | ||||||||||||||
Balances March 31, 2022 | $ | $ | ( | $ | |||||||||||||
*Prior periods have been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. |
(In thousands) | March 31, 2022 | |||||||
Gross cash pool position | $ | |||||||
Less: cash pool borrowings | ( | |||||||
Net cash pool position |
(In millions) | Americas | International | Corporate | Total | |||||||||||||||||||
Reserve balances at December 31, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||
Currency translation | ( | ( | ( | ||||||||||||||||||||
Cash payments / utilization | ( | ( | ( | ( | |||||||||||||||||||
Reserve balances at December 31, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Restructuring charges (releases) | ( | ||||||||||||||||||||||
Currency translation | ( | ( | |||||||||||||||||||||
Cash payments | ( | ( | ( | ||||||||||||||||||||
Reserve balances at March 31, 2022 | $ | $ | $ | $ |
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Finished products | $ | $ | ||||||||||||
Work in process | ||||||||||||||
Raw materials and supplies | ||||||||||||||
Total inventories | $ | $ |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
Land | $ | $ | |||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Construction in progress | |||||||||||
Total | |||||||||||
Less: accumulated depreciation | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
MSA Safety Incorporated | Noncontrolling Interests | ||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Pension and other post-retirement benefits (a) | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | $ | |||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss into net income: | |||||||||||||||||||||||
Amortization of prior service credit (Note 15) | ( | ( | |||||||||||||||||||||
Recognized net actuarial losses (Note 15) | |||||||||||||||||||||||
Tax benefit | ( | ( | |||||||||||||||||||||
Total amount reclassified from accumulated other comprehensive loss, net of tax, into net income | |||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | $ | |||||||||||||||||
Available-for-sale securities | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | $ | |||||||||||||||||
Unrealized loss on available-for-sale securities (Note 17) | ( | ( | |||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | $ | |||||||||||||||||
Foreign currency translation | |||||||||||||||||||||||
Balance at beginning of period | $ | ( | $ | ( | $ | $ | |||||||||||||||||
Foreign currency translation adjustments | ( | ||||||||||||||||||||||
Balance at end of period | $ | ( | $ | ( | $ | $ |
Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | ||||||||||||||||||||||
(In thousands) | Common Stock | Treasury Cost | Common Stock | Treasury Cost | |||||||||||||||||||
Balance at beginning of period | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Stock compensation expense | |||||||||||||||||||||||
Restricted and performance stock awards | ( | ( | |||||||||||||||||||||
Stock options exercised | |||||||||||||||||||||||
Treasury shares purchased | ( | ( | |||||||||||||||||||||
Balance at end of period | $ | $ | ( | $ | $ | ( |
(In thousands, except percentage amounts) | Americas | International | Corporate | Consolidated Totals | ||||||||||||||||||||||
Three Months Ended March 31, 2022 | ||||||||||||||||||||||||||
Sales to external customers | $ | $ | $ | $ | ||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Restructuring charges (Note 3) | ||||||||||||||||||||||||||
Currency exchange losses, net | ||||||||||||||||||||||||||
Product liability expense (Note 18) | ||||||||||||||||||||||||||
Acquisition related costs(a) (Note 14) | ||||||||||||||||||||||||||
Adjusted operating income (loss) | ( | |||||||||||||||||||||||||
Adjusted operating margin % | % | % | ||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Adjusted EBITDA | ( | |||||||||||||||||||||||||
Adjusted EBITDA margin % | % | % | ||||||||||||||||||||||||
(In thousands, except percentage amounts) | Americas | International | Corporate | Consolidated Totals | ||||||||||||||||||||||
Three Months Ended March 31, 2021 | ||||||||||||||||||||||||||
Sales to external customers | $ | $ | $ | $ | ||||||||||||||||||||||
Operating income | ||||||||||||||||||||||||||
Restructuring charges (Note 3) | ||||||||||||||||||||||||||
Currency exchange gains, net | ( | |||||||||||||||||||||||||
Product liability expense (Note 18) | ||||||||||||||||||||||||||
Acquisition related costs(a) | ||||||||||||||||||||||||||
Adjusted operating income (loss) | ( | |||||||||||||||||||||||||
Adjusted operating margin % | % | % | ||||||||||||||||||||||||
Depreciation and amortization | ||||||||||||||||||||||||||
Adjusted EBITDA | ( | |||||||||||||||||||||||||
Adjusted EBITDA margin % | % | % | ||||||||||||||||||||||||
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. Adjustments were made to Americas and International. | ||||||||||||||||||||||||||
Three Months Ended March 31, 2022 | Consolidated | Americas | International | |||||||||||||||||||||||
(In thousands, except percentages) | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed Gas & Flame Detection (a) | $ | $ | $ | |||||||||||||||||||||||
Breathing Apparatus | ||||||||||||||||||||||||||
Firefighter Helmets & Protective Apparel | ||||||||||||||||||||||||||
Portable Gas Detection | ||||||||||||||||||||||||||
Industrial Head Protection | ||||||||||||||||||||||||||
Fall Protection | ||||||||||||||||||||||||||
Other (b) | ||||||||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||||||||
Three Months Ended March 31, 2021 | Consolidated | Americas | International | |||||||||||||||||||||||
(In thousands, except percentages) | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Breathing Apparatus | $ | $ | $ | |||||||||||||||||||||||
Fixed Gas & Flame Detection | ||||||||||||||||||||||||||
Firefighter Helmets & Protective Apparel | ||||||||||||||||||||||||||
Portable Gas Detection | ||||||||||||||||||||||||||
Industrial Head Protection | ||||||||||||||||||||||||||
Fall Protection | ||||||||||||||||||||||||||
Other (b) | ||||||||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||||||||
Amounts attributable to MSA Safety Incorporated common shareholders: | Three Months Ended March 31, | |||||||||||||
(In thousands, except per share amounts) | 2022 | 2021 | ||||||||||||
Net income | $ | $ | ||||||||||||
Preferred stock dividends | ( | ( | ||||||||||||
Net income available to common equity | ||||||||||||||
Dividends and undistributed earnings allocated to participating securities | ( | ( | ||||||||||||
Net income available to common shareholders | ||||||||||||||
Basic weighted-average shares outstanding | ||||||||||||||
Stock-based compensation awards | ||||||||||||||
Diluted weighted-average shares outstanding | ||||||||||||||
Antidilutive stock options | ||||||||||||||
Earnings per share: | ||||||||||||||
Basic | $ | $ | ||||||||||||
Diluted | $ | $ | ||||||||||||
*Prior period has been adjusted to reflect the change in inventory accounting method, as described in the Company's fiscal 2021 Annual Report on Form 10-K. |
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Stock compensation expense | $ | $ | ||||||||||||
Income tax expense | ||||||||||||||
Stock compensation expense, net of tax | $ | $ |
Shares | Weighted Average Exercise Price | |||||||||||||
Outstanding at January 1, 2022 | $ | |||||||||||||
Exercised | ( | |||||||||||||
Outstanding at March 31, 2022 | ||||||||||||||
Exercisable at March 31, 2022 | $ |
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Unvested at January 1, 2022 | $ | |||||||||||||
Granted | ||||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Unvested at March 31, 2022 | $ |
Fair value per unit | $ | ||||
Risk-free interest rate | |||||
Expected dividend yield | |||||
Expected volatility | |||||
MSA stock beta | |||||
Shares | Weighted Average Grant Date Fair Value | |||||||||||||
Unvested at January 1, 2022 | $ | |||||||||||||
Granted | ||||||||||||||
Performance adjustments | ( | |||||||||||||
Vested | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Unvested at March 31, 2022 | $ |
(In thousands) | March 31, 2022 | December 31, 2021 | |||||||||
2016 Senior Notes payable through 2031, | |||||||||||
2021 Senior Notes payable through 2036, | |||||||||||
2021 Senior Notes payable through 2036, | |||||||||||
Senior revolving credit facility maturing in 2026, net of debt issuance costs | |||||||||||
Total | |||||||||||
Amounts due within one year | |||||||||||
Long-term debt, net of debt issuance costs | $ | $ |
(In thousands) | Goodwill | ||||
Balance at January 1, 2022 | $ | ||||
Currency translation | ( | ||||
Balance at March 31, 2022 | $ |
(In thousands) | Intangible Assets | ||||
Net balance at January 1, 2022 | $ | ||||
Amortization expense | ( | ||||
Currency translation | ( | ||||
Net balance at March 31, 2022 | $ |
(In millions) | July 1, 2021 | ||||
Current assets (including cash of $ | $ | ||||
Property, plant and equipment and other noncurrent assets | |||||
Customer relationships | |||||
Developed technology | |||||
Trade name | |||||
Goodwill | |||||
Total assets acquired | |||||
Total liabilities assumed | ( | ||||
Net assets acquired | $ |
(In millions) | January 25, 2021 | ||||
Current assets (including cash of $ | $ | ||||
Net investment in sales-type leases, noncurrent | |||||
Property, plant and equipment and other noncurrent assets | |||||
Customer relationships | |||||
Trade name and other intangible assets | |||||
Goodwill | |||||
Total assets acquired | |||||
Total liabilities assumed | ( | ||||
Net assets acquired | $ |
Pension Benefits | Other Benefits | |||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||||||||||||
Interest cost | ||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ||||||||||||||||||||||||
Amortization of prior service cost (credit) | ( | ( | ||||||||||||||||||||||||
Recognized net actuarial losses | ||||||||||||||||||||||||||
Settlements | ( | |||||||||||||||||||||||||
Net periodic benefit cost (a) | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||
(In thousands) | March 31, 2022 | December 31, 2021 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange contracts: other current liabilities | $ | $ | ||||||||||||
Foreign exchange contracts: prepaid expenses and other current assets |
Loss Recognized in Income | ||||||||||||||
Three Months Ended March 31, | ||||||||||||||
(In thousands) | 2022 | 2021 | ||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Foreign exchange contracts | $ | $ |
Three Months Ended March 31, 2022 | Year Ended December 31, 2021 | |||||||||||||
Open lawsuits, beginning of period | ||||||||||||||
New lawsuits | ||||||||||||||
Settled and dismissed lawsuits | ( | ( | ||||||||||||
Open lawsuits, end of period |
Three Months Ended March 31, 2022 | Year Ended December 31, 2021 | |||||||||||||
Asserted claims, beginning of period | ||||||||||||||
New claims | ||||||||||||||
Settled and dismissed claims | ( | ( | ||||||||||||
Asserted claims, end of period |
(In millions) | Three Months Ended March 31, 2022 | Year Ended December 31, 2021 | ||||||||||||
Balance beginning of period | $ | $ | ||||||||||||
Additions | ||||||||||||||
Collections and other adjustments | ( | ( | ||||||||||||
Balance end of period | $ | $ |
(In millions) | Three Months Ended March 31, 2022 | Year Ended December 31, 2021 | ||||||||||||
Balance beginning of period | $ | $ | ||||||||||||
Additions | ||||||||||||||
Collections | ( | |||||||||||||
Balance end of period | $ | $ |
(In thousands) | Three Months Ended March 31, 2022 | Year Ended December 31, 2021 | ||||||||||||
Beginning warranty reserve | $ | $ | ||||||||||||
Warranty payments | ( | ( | ||||||||||||
Warranty claims | ||||||||||||||
Provision for product warranties and other adjustments | ( | ( | ||||||||||||
Ending warranty reserve | $ | $ |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Net Sales | Three Months Ended March 31, | Dollar Increase | Percent Increase | ||||||||||||||||||||
(In millions) | 2022 | 2021 | |||||||||||||||||||||
Consolidated | $330.7 | $308.4 | $22.3 | 7.2% | |||||||||||||||||||
Americas | 225.7 | 208.3 | 17.4 | 8.4% | |||||||||||||||||||
International | 105.0 | 100.1 | 4.9 | 4.9% |
Net Sales | Three Months Ended March 31, 2022 versus March 31, 2021 | ||||||||||
(Percent Change) | Americas | International | Consolidated | ||||||||
GAAP reported sales change | 8.4% | 4.9% | 7.2% | ||||||||
Currency translation effects | 0.6% | 5.0% | 2.1% | ||||||||
Constant currency sales change | 9.0% | 9.9% | 9.3% | ||||||||
Less: Acquisitions(a) | (5.9)% | (4.5)% | (5.5)% | ||||||||
Organic constant currency change | 3.1% | 5.4% | 3.8% |
Selling, general, and administrative expenses | Three Months Ended March 31, 2022 versus March 31, 2021 | ||||
(Percent Change) | Consolidated | ||||
GAAP reported change | 4.1% | ||||
Currency translation effects | 1.6% | ||||
Constant currency change | 5.7% | ||||
Less: Acquisitions and related strategic transaction costs | (4.3)% | ||||
Organic constant currency change | 1.4% |
Adjusted operating income | Three Months Ended March 31, 2022 | |||||||||||||
(In thousands) | Americas | International | Corporate | Consolidated | ||||||||||
Net sales | $ | 225,648 | $ | 105,044 | $ | — | $ | 330,692 | ||||||
GAAP operating income | 42,668 | |||||||||||||
Restructuring charges (Note 3) | 2,189 | |||||||||||||
Currency exchange losses, net (Note 6) | 3,271 | |||||||||||||
Product liability expense (Note 18) | 2,772 | |||||||||||||
Acquisition related costs (Note 14)(a) | 2,943 | |||||||||||||
Adjusted operating income (loss) | 52,435 | 9,024 | (7,616) | 53,843 | ||||||||||
Adjusted operating margin % | 23.2 | % | 8.6 | % | ||||||||||
Depreciation and amortization(a) | 11,829 | |||||||||||||
Adjusted EBITDA | 60,796 | 12,362 | (7,486) | 65,672 | ||||||||||
Adjusted EBITDA % | 26.9 | % | 11.8 | % |
Adjusted operating income | Three Months Ended March 31, 2021 | |||||||||||||
(In thousands) | Americas | International | Corporate | Consolidated | ||||||||||
Net sales | $ | 208,340 | $ | 100,088 | $ | — | $ | 308,428 | ||||||
GAAP operating income | 44,083 | |||||||||||||
Restructuring charges (Note 3) | 1,308 | |||||||||||||
Currency exchange gains, net (Note 6) | (2,099) | |||||||||||||
Product liability expense (Note 18) | 2,796 | |||||||||||||
Acquisition related costs (Note 14)(a) | 1,373 | |||||||||||||
Adjusted operating income (loss) | 45,195 | 8,792 | (6,526) | 47,461 | ||||||||||
Adjusted operating margin % | 21.7 | % | 8.8 | % | ||||||||||
Depreciation and amortization(a) | 10,504 | |||||||||||||
Adjusted EBITDA | 52,229 | 12,165 | (6,429) | 57,965 | ||||||||||
Adjusted EBITDA % | 25.1 | % | 12.2 | % |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
January 2022 | 165 | $ | 150.96 | — | 431,639 | |||||||||||||||||||||
February 2022 | 665 | 137.92 | — | 417,758 | ||||||||||||||||||||||
March 2022 | 27,536 | 128.64 | — | 423,310 |
Item 6. | Exhibits |
MSA SAFETY INCORPORATED | ||||||||
April 29, 2022 | /s/ Kenneth D. Krause | |||||||
Kenneth D. Krause | ||||||||
Sr. Vice President, Chief Financial Officer and Treasurer | ||||||||
/s/ Jonathan D. Buck | ||||||||
Jonathan D. Buck | ||||||||
Chief Accounting Officer and Controller (Principal Accounting Officer) |
April 29, 2022 | /s/ Nishan J. Vartanian | |||||||
Nishan J. Vartanian | ||||||||
President and Chief Executive Officer |
April 29, 2022 | /s/ Kenneth D. Krause | |||||||
Kenneth D. Krause | ||||||||
Sr. Vice President, Chief Financial Officer and Treasurer |
April 29, 2022 | /s/ Nishan J. Vartanian | |||||||
Nishan J. Vartanian | ||||||||
President and Chief Executive Officer | ||||||||
/s/ Kenneth D. Krause | ||||||||
Kenneth D. Krause | ||||||||
Sr. Vice President, Chief Financial Officer and Treasurer |
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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 35,542 | $ 36,636 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments (Note 6) | 5,892 | (10,223) |
Pension and post-retirement plan actuarial gains, net of tax (Note 6) | 2,264 | 3,712 |
Unrealized losses on available-for-sale securities (Note 6) | (9) | (5) |
Total other comprehensive income (loss), net of tax | 8,147 | (6,516) |
Comprehensive income | 43,689 | 30,120 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | (221) |
Comprehensive income attributable to MSA Safety Incorporated | $ 43,689 | $ 29,899 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for credit loss | $ 6,171 | $ 5,789 |
Cumulative preferred stock (percent) | 4.50% | 4.50% |
Preferred stock, par value (dollars per share) | $ 50,000 | $ 50,000 |
Condensed Consolidated Statements of Changes in Retained Earnings, Accumulated Other Comprehensive Loss and Noncontrolling Interests (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||
Tax reclassification adjustment | $ 1,016 | $ 1,084 |
Preferred stock, dividends (in dollars per share) | $ 0.5625 | $ 0.5625 |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of PresentationThe condensed consolidated financial statements of MSA Safety Incorporated and its subsidiaries ("MSA" or "the Company") are unaudited. These unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the Company's results. Intercompany accounts and transactions have been eliminated. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2021, Balance Sheets data was derived from the audited Consolidated Balance Sheets, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("U.S. GAAP"). This Form 10-Q report should be read in conjunction with MSA's Form 10-K for the year ended December 31, 2021, which includes all disclosures required by U.S. GAAP.During the fourth quarter of 2021, the Company changed its method of accounting for certain inventory in the United States from the last-in, first-out ("LIFO") method to the first-in, first-out ("FIFO") method. The FIFO method of accounting for inventory is preferable because it conforms the Company's entire inventory to a single method of accounting and improves comparability with the Company's peers. The effects of the change in accounting method from LIFO to FIFO have been retrospectively applied to all periods presented in all sections of this Quarterly Report. Refer to Note 4—Inventory of the consolidated financial statements in Part II Item 8 of our 2021 Form 10-K for further information related to the change in accounting principle. |
Cash and Cash Equivalents |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents Several of the Company's affiliates participate in a notional cash pooling arrangement to manage global liquidity requirements. As part of a master netting arrangement, the participants combine their cash balances in pooling accounts at the same financial institution with the ability to offset bank overdrafts of one participant against positive cash account balances held by another participant. Under the terms of the master netting arrangement, the financial institution has the right, ability and intent to offset a positive balance in one account against an overdrawn amount in another account. Amounts in each of the accounts are unencumbered and unrestricted with respect to use. As such, the net cash balance related to this pooling arrangement is included in Cash and cash equivalents in the unaudited Condensed Consolidated Balance Sheets. The Company's net cash pool position consisted of the following:
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Restructuring Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges During the three months ended March 31, 2022, we recorded restructuring charges of $2.2 million. International segment restructuring charges of $2.0 million during the three months ended March 31, 2022, were primarily related to the expansion of our European Shared Service Center in Warsaw, Poland. Americas segment restructuring charges of $0.4 million during the three months ended March 31, 2022, were primarily related to programs to adjust our operations in response to current business conditions. During the three months ended March 31, 2021, we recorded restructuring charges of $1.3 million. International segment restructuring charges of $1.0 million during the three months ended March 31, 2021, were primarily related to our ongoing initiatives to drive profitable growth and right size our operations. Americas segment restructuring charges of $0.2 million during the three months ended March 31, 2021, were primarily related to costs associated with our global Fixed Gas & Flame Detection manufacturing footprint optimization as well as programs to adjust our operations in response to current business conditions. Activity and reserve balances for restructuring charges by segment were as follows:
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Inventories |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The following table sets forth the components of inventory:
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Property, Plant and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, Plant and Equipment The following table sets forth the components of property, plant and equipment, net:
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Reclassifications Out of Accumulated Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications Out of Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss were as follows:
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Capital Stock |
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Capital Stock | Capital Stock Preferred Stock - The Company has authorized 100,000 shares of $50 par value 4.5% cumulative preferred nonvoting stock which is callable at $52.50. There are 71,340 shares issued and 52,998 shares held in treasury at March 31, 2022. The Treasury shares at cost line in the unaudited Condensed Consolidated Balance Sheets includes $1.8 million related to preferred stock. There were no treasury purchases of preferred stock shares during both the three months ended March 31, 2022 and 2021. The Company has also authorized 1,000,000 shares of $10 par value second cumulative preferred voting stock. No shares have been issued as of March 31, 2022. Common Stock - The Company has authorized 180,000,000 shares of no par value common stock. There were 62,081,391 shares issued as of December 31, 2021. No new shares were issued during the three months ended March 31, 2022, or 2021. There were 39,335,816 and 39,276,518 shares outstanding at March 31, 2022 and December 31, 2021, respectively. Treasury Shares - The Company's share repurchase program authorizes up to $100.0 million to repurchase MSA common stock in the open market and in private transactions. The share repurchase program has no expiration date. The maximum number of shares that may be repurchased is calculated based on the dollars remaining under the program and the respective month-end closing share price. During the three months ended March 31, 2022 and 2021, no shares were repurchased under this program. There were 22,745,575 and 22,804,873 Treasury Shares at March 31, 2022 and December 31, 2021, respectively. The Company issues Treasury Shares for all stock-based compensation plans. Shares are issued from Treasury at the average Treasury Share cost on the date of the transaction. There were 28,366 and 32,650 Treasury Shares issued for these purposes during the three months ended March 31, 2022 and 2021, respectively. Common stock activity is summarized as follows:
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Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We are organized into four geographical operating segments that are based on management responsibilities: Northern North America, Latin America, Europe, Middle East & Africa ("EMEA"), and Asia Pacific ("APAC"). The operating segments have been aggregated (based on economic similarities, the nature of their products, end-user markets and methods of distribution) into three reportable segments: Americas, International, and Corporate. The Americas segment is comprised of our operations in Northern North American and Latin American geographies. The International segment is comprised of our operations of all geographies outside of the Americas. Certain global expenses are allocated to each segment in a manner consistent with where the benefits from the expenses are derived. The Company's sales are allocated to each country based primarily on the destination of the end-customer. Adjusted operating income (loss), adjusted operating margin, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and adjusted EBITDA margin are the measures used by the chief operating decision maker to evaluate segment performance and allocate resources. Adjusted operating income (loss) is defined as operating income excluding restructuring charges, currency exchange gains (losses), product liability expense, acquisition related costs, including acquisition related amortization and adjusted operating margin is defined as adjusted operating income (loss) divided by segment sales to external customers. Adjusted EBITDA is defined as adjusted operating income (loss) plus depreciation and amortization and adjusted EBITDA margin is defined as adjusted EBITDA divided by segment sales to external customers. Adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin are not recognized terms under U.S. GAAP, and therefore, do not purport to be alternatives to operating income or operating margin as a measure of operating performance. Further, the Company's measure of adjusted operating income (loss), adjusted operating margin, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similarly titled measures of other companies. Adjusted operating income (loss) and adjusted EBITDA on a consolidated basis is presented in the following table to reconcile the segment operating performance measures to the most directly comparable GAAP measure, operating income, as presented on the unaudited Condensed Consolidated Statements of Income. The accounting principles applied at the operating segment level in determining operating income (loss) are generally the same as those applied at the unaudited condensed consolidated financial statements level. Sales and transfers between operating segments are accounted for at market-based transaction prices and are eliminated in consolidation. Reportable segment information is presented in the following table:
(a)Acquisition related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during due diligence and integration. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income. Acquisition related costs also include the acquisition related amortization, which is included in Cost of products sold in the unaudited Condensed Consolidated Statements of Income. Total sales by product group was as follows:
(a)Fixed Gas & Flame Detection includes sales from the Bacharach, Inc. and its affiliated companies ("Bacharach") acquisition for periods following July 1, 2021 (Americas and International). Please refer to Note 14 - Acquisitions. (b)Other products include sales of Air Purifying Respirators.
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Earnings per Share |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share Basic earnings per share attributable to MSA Safety Incorporated common shareholders is computed by dividing net income, after the deduction of preferred stock dividends and undistributed earnings allocated to participating securities, by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to MSA Safety Incorporated common shareholders assumes the issuance of common stock for all potentially dilutive share equivalents outstanding not classified as participating securities. Participating securities are defined as unvested stock-based compensation awards that contain nonforfeitable rights to dividends.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate for the first quarter of 2022 was 21.7% which differs from the United States of America ("U.S.") federal statutory rate of 21% primarily due to state income taxes, partially offset by tax benefits on certain share-based payments. The Company's effective tax rate for the first quarter of 2021 was 21.0%, which is consistent with the U.S. statutory rate of 21% as state income taxes and a one time foreign expense associated with pension was offset by tax benefits on certain share-based payments. On June 10, 2021 the United Kingdom ("U.K.") Parliament announced royal assent for Bill No. 12, on the Finance Act of 2021. This bill will increase the statutory rate from 19% to 25% in April 2023. The Company recorded this impact on its deferred tax balances in the second quarter of 2021. At March 31, 2022, the Company had a gross liability for unrecognized tax benefits of $5.0 million. The Company has recognized tax benefits associated with these liabilities of $2.5 million at March 31, 2022. The gross liability includes amounts associated with foreign tax exposure in prior periods. The Company recognizes interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's liability for accrued interest related to uncertain tax positions was $0.9 million at March 31, 2022. We are subject to regular review and audit by both foreign and domestic tax authorities. While we believe our tax positions will be sustained, the final outcome of tax audits and related litigation may differ materially from the tax amounts recorded in our unaudited condensed consolidated financial statements.
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Stock Plans |
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Stock Plans | Stock Plans The 2016 Management Equity Incentive Plan provides for various forms of stock-based compensation for eligible key employees through May 2026. Management stock-based compensation includes stock options, restricted stock awards, restricted stock units and performance stock units. The 2017 Non-Employee Directors’ Equity Incentive Plan provides for grants of stock options and restricted stock to non-employee directors through May 2027. We issue treasury shares for stock option exercises and grants of restricted stock and performance stock. Please refer to Note 7—Capital Stock for further information regarding stock compensation share issuance. Stock compensation expense is as follows:
A summary of stock option activity for the three months ended March 31, 2022, follows:
Restricted stock awards and restricted stock units are valued at the market value of the stock on the grant date. A summary of restricted stock activity for the three months ended March 31, 2022, follows:
Performance stock units that have a market condition modifier are valued at an estimated fair value using a Monte Carlo model. The final number of shares to be issued for performance stock units granted in the first quarter of 2022 may range from 0% to 200% of the target award based on achieving the specified performance targets over the performance period plus an additional modifier based on total shareholder return ("TSR") over the performance period. The following weighted average assumptions were used in estimating the fair value of the performance stock units granted for the three months ended March 31, 2022.
The risk-free interest rate is based on the U.S. Treasury Constant Maturity rates as of the grant date converted into an implied spot rate yield curve. Expected dividend yield is based on the most recent annualized dividend divided by the one year average closing share price. Expected volatility is based on the three year historical volatility preceding the grant date using daily stock prices. Expected life is based on historical stock option exercise data. A summary of performance stock unit activity for the three months ended March 31, 2022, follows:
The performance adjustments above relate primarily to the final number of shares issued for the 2019 performance unit awards which vested in the first quarter of 2022 at 64.2% of the target award based on both cumulative performance against the EBITDA margin and revenue growth targets and MSA's TSR during the three-year performance period.
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Long-Term Debt |
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Long-Term Debt | Long-Term Debt
On May 24, 2021, the Company entered into a Fourth Amended and Restated Credit Agreement (the “Revolving Credit Facility" or "Facility”) that extended its term through May 24, 2026 and increased the capacity to $900.0 million. Under the amended agreement, the Company may elect either a Base rate of interest (“BASE”) or an interest rate based on the London Interbank Offered Rate (“LIBOR”). The BASE is a daily fluctuating per annum rate equal to the highest of (i) 0.00%, (ii) the Prime Rate, (iii) the Federal Funds Open Rate plus one half of one percent (0.5%), (iv) the Overnight Bank Funding Rate, plus one half of one percent (0.5%), or (v) the Daily LIBOR Rate plus one percent (1.00%). The Company pays a credit spread of 0 to 175 basis points based on the Company’s net EBITDA leverage ratio and elected rate (BASE or LIBOR). The Company has a weighted average revolver interest rate of 1.40% as of March 31, 2022. At March 31, 2022, $568.6 million of the existing $900.0 million senior revolving credit facility was unused, including letters of credit issued under the facility. The facility also provides an accordion feature that allows the Company to access an additional $400.0 million of capacity pending approval by MSA’s board of directors and from the bank group. On July 1, 2021 the Company entered into a Third Amended and Restated Multi-Currency Note Purchase and Private Shelf Agreement (the “Prudential Note Agreement”) with PGIM, Inc. (“Prudential”). The Prudential Note Agreement provided for (i) the issuance of $100.0 million of 2.69% Series C Senior Notes due July 1, 2036 and (ii) the establishment of an uncommitted note issuance facility whereby the Company may request, subject to Prudential’s acceptance in its sole discretion, the issuance of up to $335.0 million aggregate principal amount of senior unsecured notes. As of March 31, 2022, the Company had issued £54.9 million (approximately $72.2 million at March 31, 2022) of 3.4% Series B Senior Notes due January 22, 2031. Maturities of this note are £6.1 million (approximately $8.0 million) due January 22, 2023 with annual maturities of £6.1 million through January 2031. On July 1, 2021, the Company entered into a Second Amended and Restated Master Note Facility (the “NYL Note Facility”) with NYL Investors. The NYL Note Facility provided for (i) the issuance of $100.0 million of 2.69% Series A Senior Notes due July 1, 2036 and (ii) the establishment of an uncommitted note issuance facility whereby the Company may request, subject to NYL Investors’ acceptance in its sole discretion, the issuance of up to $200.0 million aggregate principal amount of senior unsecured notes. The Revolving Credit Facility, Prudential Note Agreement and NYL Note Facility require the Company to comply with specified financial covenants, including a requirement to maintain a minimum fixed charges coverage ratio of not less than 1.50 to 1.00 and a consolidated leverage ratio not to exceed 3.50 to 1.00; except during an acquisition period, defined as four consecutive fiscal quarters beginning with the quarter of acquisition, in which case the consolidated net leverage ratio shall not exceed 4.00 to 1.00; in each case calculated on the basis of the trailing four fiscal quarters. In addition, the agreements contain negative covenants limiting the ability of the Company and its subsidiaries to incur additional indebtedness or issue guarantees, create or incur liens, make loans and investments, make acquisitions, transfer or sell assets, enter into transactions with affiliated parties, make changes in its organizational documents that are materially adverse to lenders or modify the nature of the Company's or its subsidiaries' business. All credit facilities exclude the subsidiary, Mine Safety Appliances Company, LLC. On July 1, 2021, the Company acquired Bacharach in a transaction valued at $329.4 million, net of cash acquired. The acquisition was partially financed by $200.0 million of 2.69% Senior Notes from the Prudential Note Agreement and NYL Note Facility. The remaining purchase price was financed under the Revolving Credit Facility. During August 2021, the Company amended its Revolving Credit Facility to transition from Sterling LIBOR reference rates to Sterling Overnight Interbank Average Rate ("SONIA") reference rates. The Company will apply the optional expedients in ASC 848, Reference Rate Reform, to this modification and potential future modifications driven by reference rate reform, accounting for the modifications as a continuation of the existing contracts. Therefore, these modifications will not require remeasurement at the modification date or a reassessment of previous accounting determinations. As such, the Company does not anticipate the change in reference rates will have an impact on the Company’s unaudited condensed consolidated financial statements. Management continues to evaluate the Company’s other outstanding U.S. LIBOR based contracts to determine whether reference rate modifications are necessary. As of March 31, 2022, the Company was in full compliance with the restrictive covenants under its various credit agreements. The Company had outstanding bank guarantees and standby letters of credit with banks as of March 31, 2022, totaling $8.9 million, of which $1.5 million relate to the senior revolving credit facility. The letters of credit serve to cover customer requirements in connection with certain sales orders and insurance companies. The Company is also required to provide cash collateral in connection with certain arrangements. At March 31, 2022, the Company has $0.5 million of restricted cash in support of these arrangements.
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets Changes in goodwill during the three months ended March 31, 2022 were as follows:
At March 31, 2022, goodwill of $448.6 million and $183.2 million related to the Americas and International reportable segments, respectively. Changes in intangible assets, net of accumulated amortization, during the three months ended March 31, 2022, were as follows:
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Acquisitions |
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Acquisitions | Acquisitions Acquisition of Bacharach On July 1, 2021, we acquired 100% of the common stock of Bacharach in an all cash transaction valued at $329.4 million, net of cash acquired. Headquartered near Pittsburgh in New Kensington, PA, Bacharach is a leader in gas detection technologies used in the heating, ventilation, air conditioning, and refrigeration ("HVAC-R") markets. This acquisition expanded MSA’s gas detection portfolio and leverages MSA’s product and manufacturing expertise into new markets. Bacharach's operating results are included in our unaudited condensed consolidated financial statements from the acquisition date within the Americas, International and Corporate reportable segments. The acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. The following table summarizes the preliminary fair values of the Bacharach assets acquired and liabilities assumed at the date of the acquisition:
The amounts in the table above are subject to change upon completion of the valuation of the assets acquired and liabilities assumed. This valuation is expected to be completed by the second quarter of 2022. Assets acquired and liabilities assumed in connection with the acquisition were recorded at their preliminary fair values. Fair values were determined by management, based in part on an independent valuation performed by a third party valuation specialist. The valuation methods used to determine the fair value of intangible assets included the excess earnings approach for customer relationships using customer inputs and contributory charges; the relief from royalty method for trade name and developed technologies; and the cost method for assembled workforce which is included in goodwill. A number of significant assumptions and estimates were involved in the application of these valuation methods, including forecasted sales volumes and prices, royalty rates, costs to produce, tax rates, capital spending, discount rates, attrition rates and working capital changes. Cash flow forecasts were generally based on Bacharach pre-acquisition forecasts, coupled with estimated MSA sales synergies. Identifiable intangible assets with finite lives are subject to amortization over their estimated useful lives. The customer relationships, developed technology and trade name acquired in the Bacharach transaction are being amortized over periods of 21 years, 7 to 9 years and 20 years, respectively. Estimated future amortization expense related to the identifiable intangible assets is approximately $6.7 million for the remainder of 2022, $9.0 million annually for 2023 through 2026, and $109.0 million thereafter. Goodwill was calculated as the excess of the purchase price over the fair value of net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Among the factors that contributed to a purchase price in excess of the fair value of the net tangible and intangible assets acquired were the acquisition of an assembled workforce, the expected synergies and other benefits that we believe will result from combining the operations of Bacharach with our operations. Goodwill of $194.5 million related to the Bacharach acquisition was recorded, with $155.6 million and $38.9 million allocated to the Americas and International reportable segments, respectively. This Goodwill is non-deductible for tax purposes. Acquisition of Bristol Uniforms and Bell Apparel ("Bristol") On January 25, 2021, we acquired 100% of the common stock of B T Q Limited, including Bristol. Bristol, which is headquartered in the U.K., is a leading innovator and provider of protective apparel to the fire, rescue services, and utility sectors. The Company finalized the purchase price allocation during the first quarter of 2022. The following table summarizes the fair values of the Bristol assets acquired and liabilities assumed at the date of the acquisition:
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Pensions and Other Post-retirement Benefits |
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions and Other Post-retirement Benefits | Pensions and Other Post-retirement Benefits Components of net periodic benefit cost consisted of the following:
(a) Components of net periodic benefit cost other than service cost are included in the line item Other income, net, and service costs are included in the line items Cost of products sold and Selling, general and administrative in the unaudited Condensed Consolidated Statements of Income. We made contributions of $1.9 million to our pension plans during both the three months ended March 31, 2022 and 2021, respectively. We expect to make net contributions of $7.7 million to our pension plans in 2022, which are primarily associated with statutorily required plans in the International reporting segment.
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Derivative Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments As part of our currency exchange rate risk management strategy, we enter into certain derivative foreign currency forward contracts that do not meet the U.S. GAAP criteria for hedge accounting but have the impact of partially offsetting certain foreign currency exposures. We account for these forward contracts at fair value and report the related gains or losses in currency exchange losses (gains), net, in the unaudited Condensed Consolidated Statements of Income. The notional amount of open forward contracts was $99.9 million and $99.0 million at March 31, 2022, and December 31, 2021, respectively. The following table presents the unaudited Condensed Consolidated Balance Sheets location and fair value of assets and liabilities associated with derivative financial instruments:
The following table presents the unaudited Condensed Consolidated Statements of Income location and impact of derivative financial instruments:
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Fair Value Measurements |
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Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: •Level 1—Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets. •Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. •Level 3—Unobservable inputs for the asset or liability. The valuation methodologies we used to measure financial assets and liabilities include the derivative financial instruments described in Note 16—Derivative Financial Instruments. We estimate the fair value of the derivative financial instruments, consisting of foreign currency forward contracts, based upon valuation models with inputs that generally can be verified by observable market conditions and do not involve significant management judgment. Accordingly, the fair values of the derivative financial instruments are classified within Level 2 of the fair value hierarchy. With the exception of our investments in marketable securities and fixed rate long-term debt, we believe that the reported carrying amounts of our financial assets and liabilities approximate their fair values. We value our investments in available-for-sale marketable securities, primarily fixed income, at fair value using quoted market prices for similar securities or pricing models. Accordingly, the fair values of the investments are classified within Level 2 of the fair value hierarchy. The amortized cost basis of our investments was $40.0 million and $49.0 million as of March 31, 2022 and December 31, 2021, respectively. The fair value was $40.0 million and $49.0 million as of March 31, 2022 and December 31, 2021, respectively, which was reported in Investments, short-term in the accompanying unaudited Condensed Consolidated Balance Sheets. The change in fair value is recorded in Other comprehensive income, net of tax. The Company does not intend to sell, nor is it more likely than not that we will be required to sell, these securities prior to recovery of their cost, as such, management believes that any unrealized gains or losses are temporary; therefore, no impairment gains or losses relating to these securities have been recognized. All investments in marketable securities have maturities of one year or less and are currently in an unrealized gain position as of March 31, 2022. The reported carrying amount of our fixed rate long-term debt was $272 million and $274 million at March 31, 2022, and December 31, 2021, respectively. The fair value of this debt was $256 million and $280 million at March 31, 2022, and December 31, 2021, respectively. The fair value of this debt was determined using Level 2 inputs by evaluating similarly rated companies with publicly traded bonds where available or current borrowing rates available for financings with similar terms and maturities.
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Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contingencies | Contingencies Product liability The Company and its subsidiaries face an inherent business risk of exposure to product liability claims arising from the alleged failure of our products to prevent the types of personal injury or death against which they are designed to protect. Product liability claims are categorized as either single incident or cumulative trauma. Single incident product liability claims. Single incident product liability claims involve incidents of short duration that are typically known when they occur and involve observable injuries, which provide an objective basis for quantifying damages. Management has established reserves for the single incident product liability claims of its various subsidiaries, including, asserted single incident product liability claims and incurred but not reported ("IBNR") single incident claims. To determine the reserves, Management makes reasonable estimates of losses for single incident claims based on the number and characteristics of asserted claims, historical experience, sales volumes, expected settlement costs, and other relevant information. The reserve for single incident product liability claims was $1.5 million and $1.4 million at March 31, 2022 and December 31, 2021, respectively. Single incident product liability expense was $0.1 million during both the three months ended March 31, 2022 and 2021. Single incident product liability exposures are evaluated on an annual basis, or more frequently if changing circumstances warrant. Adjustments are made to the reserve as appropriate. The reserve has not been discounted to present value and does not include future amounts which will be spent to defend the claims. Cumulative trauma product liability claims. Cumulative trauma product liability claims involve alleged exposures to harmful substances (e.g., silica, asbestos and coal dust) that occurred years ago and may have developed over long periods of time into diseases such as silicosis, asbestosis, mesothelioma, or coal worker’s pneumoconiosis. One of the Company's affiliates, Mine Safety Appliances Company, LLC ("MSA LLC"), was named as a defendant in 1,691 lawsuits comprised of 4,595 claims as of March 31, 2022. These lawsuits mainly involve respiratory protection products allegedly manufactured and sold by MSA LLC or its predecessors. The product models alleged were manufactured many years ago by MSA LLC and are no longer sold. A summary of cumulative trauma product liability lawsuits and asserted cumulative trauma product liability claims activity is as follows:
The increases in the number of claims in 2021 were largely driven by an increase in claims alleging injuries from exposure to coal dust, including claims brought by plaintiffs' counsel with which MSA LLC does not have substantial prior experience. Subsequent to March 31, 2022, MSA LLC agreed to enter into a process to negotiate, resolve, and dismiss several hundreds of claims over the next several months. Amounts to resolve these claims have already been accrued as par of the product liability reserve. If resolutions are reached, expected cash outlays of up to $26.3 million associated with these claims are expected to be paid over the next four quarters. Management has established a reserve for MSA LLC's potential exposure to cumulative trauma product liability claims. MSA LLC's total cumulative trauma product liability reserve was $410.8 million, including $3.5 million for claims settled but not yet paid and related defense costs, as of March 31, 2022 and $409.8 million, including $2.5 million for claims settled but not yet paid and related defense costs, December 31, 2021. The reserve includes estimated amounts related to asserted and IBNR asbestos, silica, and coal dust claims expected to be resolved through the year 2074. The reserve has not been discounted to present value and does not include future amounts which will be spent to defend the claims. Defense costs are recognized in the unaudited Condensed Consolidated Statements of Income as incurred. At March 31, 2022, $47.9 million of the total reserve for cumulative trauma product liability claims is recorded in the Insurance and product liability line within other current liabilities in the unaudited Condensed Consolidated Balance Sheets and the remainder, $362.9 million, is recorded in the Product liability and other noncurrent liabilities line. At December 31, 2021, $46.7 million of the total reserve for cumulative trauma product liability claims is recorded in the Insurance and product liability line within other current liabilities in the unaudited Condensed Consolidated Balance Sheets and the remainder, $363.1 million, is recorded in the Product liability and other noncurrent liabilities line. Total cumulative trauma liability losses were $2.8 million and $3.0 million for the three months ended March 31, 2022 and 2021, respectively, primarily related to the defense of cumulative trauma product liability claims. Uninsured cumulative trauma product liability losses, which were included in Product liability expense on the unaudited Condensed Consolidated Statements of Income, were $2.8 million and $2.8 million for the three months ended March 31, 2022 and 2021, respectively, and represent the total cumulative trauma liability losses net of any estimated insurance receivables as discussed below. MSA LLC's cumulative trauma product liability reserve is based upon a reasonable estimate of MSA LLC’s current and potential future liability for cumulative trauma product liability claims, in accordance with applicable accounting principles. To develop a reasonable estimate of MSA LLC’s potential exposure to cumulative trauma product liability claims, management performs an annual comprehensive review of MSA LLC’s cumulative trauma product liability claims in consultation with an outside valuation consultant and outside legal counsel. The review process takes into account MSA LLC’s historical claims experience, developments in MSA LLC’s claims experience over the past year, developments in the tort system generally, and any other relevant information. Quarterly, management and outside legal counsel review whether significant new developments have occurred which could materially impact recorded amounts, and if warranted, management reviews changes with an outside valuation consultant. These adjustments were largely a result of newly filed claims experienced during the year and in particular, the number of newly filed coal claims, which were well in excess of historical experience. Numerous additional factors, data points, and developments were analyzed during the annual review process. The estimate of MSA LLC’s potential liability for cumulative trauma product liability claims, and the corresponding reserve, are based upon numerous assumptions derived from MSA LLC’s historical experience. Those assumptions include the incidence of applicable diseases in the general population, the number of claims that may be asserted against MSA LLC in the future, the years in which such claims may be asserted, the counsel asserting those claims, the percentage of claims resolved through settlement, the types and severity of illnesses alleged by claimants to give rise to their claims, the venues in which the claims are asserted, and numerous other factors, which influence how many claims may be brought against MSA LLC, whether those claims ultimately are resolved for payment, and at what values. Cumulative trauma product liability litigation is inherently unpredictable and MSA LLC's expense with respect to cumulative trauma product liability claims could vary significantly in future periods. It is difficult to reasonably estimate how many claims will be newly asserted against MSA LLC in any given period or over the lifetime of MSA LLC's claims experience. Case solicitation and filing activity, in our experience, is unique to each plaintiffs’ counsel and also influenced by external factors. Once asserted it is unclear at the time of filing whether a claim will be actively litigated, or the extent of ultimate loss, if any, in the absence of discovery at initial case stages. Even when a case is actively litigated, it is often difficult to determine if the lawsuit will be dismissed without payment or settled, because of sufficiency of product identification, statute of limitations challenges, or other defenses. This difficulty is increased when claims are asserted by plaintiffs’ counsel with which MSA LLC does not have substantial prior experience, as claims experience can vary significantly among different plaintiffs' counsel. As a result of all of these factors, it is typically unclear until late into litigation the extent of loss that will be experienced on account of any particular claim, or inventories of claims. Actual loss amounts for settled claims are highly variable and turn on a case-by-case analysis of the relevant facts. As more information is learned about asserted claims and potential future trends, adjustments may be made to the cumulative trauma product liability reserve as appropriate. As a result of such uncertainties, MSA LLC’s actual claims experience may differ in one or more respects from the assumptions used in establishing the reserve, and there can be no assurance that the actuarial models employed will accurately predict future experience. MSA LLC’s experience in future periods may vary from the reserve currently established, and MSA LLC may ultimately incur losses in excess of presently recorded liabilities. Any adjustments as a result of this experience could materially impact our consolidated financial statements in future periods. Insurance Receivable and Notes Receivable, Insurance Companies Many years ago, MSA LLC purchased insurance policies from various insurance carriers that, subject to common contract exclusions, provided coverage for cumulative trauma product liability losses (the "Occurrence-Based Policies"). While we continue to pursue reimbursement under certain remaining Occurrence-Based Policies, the vast majority of these policies have been exhausted, settled or converted into either (1) negotiated settlement agreements with scheduled payment streams (recorded as notes receivables), or (2) negotiated Coverage-in-Place Agreements (recorded as insurance receivables). As a result, MSA LLC is largely self-insured for cumulative trauma product liability claims, and additional amounts recorded as insurance receivables or notes receivables will be limited. When adjustments are made to amounts recorded in the cumulative trauma product liability reserve, we calculate amounts due to be reimbursed pursuant to the terms of the negotiated Coverage-In-Place Agreements, including cumulative trauma product liability losses and related defense costs, and we record the amounts probable of reimbursement as insurance receivables. These amounts are not subject to current coverage litigation. Insurance receivables at March 31, 2022 totaled $126.4 million of which, $8.6 million is reported in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheets and $117.8 million is reported in Insurance receivable and other noncurrent assets. Insurance receivables at December 31, 2021 totaled $130.2 million, of which $8.6 million was reported in Prepaid expenses and other current assets in the unaudited Condensed Consolidated Balance Sheets and $121.6 million was reported in Insurance receivable and other noncurrent assets. The vast majority of the $126.4 million insurance receivables balance at March 31, 2022 is attributable to reimbursement believed to be due under the terms of signed Coverage-In-Place Agreements and a portion of this amount represents the estimated recovery of IBNR amounts not yet incurred. A summary of insurance receivables balance and activity related to cumulative trauma product liability losses is as follows:
We record formal notes receivable due from scheduled payment streams according to negotiated settlement agreements with insurers. These amounts are not subject to current coverage litigation. Notes receivable from insurance companies at March 31, 2022, totaled $48.8 million, of which $3.9 million is reported in Notes receivable, insurance companies, current in the unaudited Condensed Consolidated Balance Sheets and $44.9 million is reported in Notes receivable, insurance companies, noncurrent. Notes receivable from insurance companies at December 31, 2021 totaled $48.5 million of which $3.9 million was reported in Notes receivable, insurance companies, current in the unaudited Condensed Consolidated Balance Sheets and $44.6 million was reported in Notes receivable, insurance companies, noncurrent. A summary of notes receivables from insurance companies balance is as follows:
The vast majority of the insurance receivables balance at March 31, 2022, is attributable to reimbursement under the terms of signed agreements with insurers and is not currently subject to litigation. The collectibility of MSA LLC's insurance receivables and notes receivables is regularly evaluated and we believe that the amounts recorded are probable of collection. The determination that the recorded insurance receivables are probable of collection is based on the terms of the settlement agreements reached with the insurers, our history of collection, and the advice of MSA LLC's outside legal counsel and consultants. Various factors could affect the timing and amount of recovery of the insurance and notes receivables, including assumptions regarding various aspects of the composition and characteristics of future claims (which are relevant to calculating reimbursement under the terms of certain Coverage-In-Place Agreements) and the extent to which the issuing insurers may become insolvent in the future. Other Litigation Two subsidiaries of the Company, Globe Manufacturing Company, LLC ("Globe") and MSA LLC, are defending a small number of lawsuits in which plaintiffs assert that certain of those entities’ products allegedly containing per- and polyfluoroalkyl substances (“PFAS”) have caused injury, health issues, or environmental issues. PFAS are a large class of substances that are widely used in everyday products. Specifically, Globe builds turnout gear from technical fabrics sourced from a small pool of specialty textile manufacturers. These protective fabrics have been tested and certified to meet industry standards, and some of them contain PFAS to achieve water, oil, or chemical resistance. At this time, no manufacturer of firefighter protective clothing is able to meet current National Fire Protection Association safety standards while offering coats or pants that are completely PFAS free. Globe and MSA LLC believe they have valid defenses to these lawsuits. These matters are at a very early stage with numerous factual and legal issues to be resolved. Defense costs relating to these lawsuits are recognized in the unaudited Condensed Consolidated Statements of Income as incurred. Globe and MSA LLC are also pursuing insurance coverage and indemnification related to the lawsuits. Product Warranty The Company provides warranties on certain product sales. Product warranty reserves are established in the same period that revenue from the sale of the related products is recognized, or in the period that a specific issue arises as to the functionality of the Company's product. The determination of such reserves requires the Company to make estimates of product return rates and expected costs to repair or to replace the products under warranty. The amounts of the reserves are based on established terms and the Company's best estimate of the amounts necessary to settle future and existing claims on products sold as of the balance sheet date. If actual return rates and/or repair and replacement costs differ significantly from estimates, adjustments to recognize additional cost of sales may be required in future periods. The following table reconciles the changes in the Company's accrued warranty reserve:
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Basis of Presentation (Policies) |
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Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The condensed consolidated financial statements of MSA Safety Incorporated and its subsidiaries ("MSA" or "the Company") are unaudited. These unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the Company's results. Intercompany accounts and transactions have been eliminated. The results reported in these unaudited condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2021, Balance Sheets data was derived from the audited Consolidated Balance Sheets, but does not include all disclosures required by accounting principles generally accepted in the United States of America ("U.S. GAAP"). This Form 10-Q report should be read in conjunction with MSA's Form 10-K for the year ended December 31, 2021, which includes all disclosures required by U.S. GAAP. |
Cash and Cash Equivalents (Tables) |
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Schedule of Cash and Cash Equivalents | The Company's net cash pool position consisted of the following:
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Restructuring Charges (Tables) |
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---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Activity and Reserve Balance for Restructuring Charges by Segment | Activity and reserve balances for restructuring charges by segment were as follows:
|
Inventories (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | The following table sets forth the components of inventory:
|
Property, Plant and Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Property, Plant and Equipment | The following table sets forth the components of property, plant and equipment, net:
|
Reclassifications Out of Accumulated Other Comprehensive Loss (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification Out of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss were as follows:
|
Capital Stock (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Activity | Common stock activity is summarized as follows:
|
Segment Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reportable Segment Information | Reportable segment information is presented in the following table:
(a)Acquisition related costs include advisory, legal, accounting, valuation, and other professional or consulting fees incurred during due diligence and integration. These costs are included in Selling, general and administrative expense in the unaudited Condensed Consolidated Statements of Income. Acquisition related costs also include the acquisition related amortization, which is included in Cost of products sold in the unaudited Condensed Consolidated Statements of Income.
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Percentage of Total Sales by Product Group | Total sales by product group was as follows:
(a)Fixed Gas & Flame Detection includes sales from the Bacharach, Inc. and its affiliated companies ("Bacharach") acquisition for periods following July 1, 2021 (Americas and International). Please refer to Note 14 - Acquisitions. (b)Other products include sales of Air Purifying Respirators.
|
Earnings per Share (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share |
|
Stock Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Compensation Expense | Stock compensation expense is as follows:
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Summary of Stock Option Activity | A summary of stock option activity for the three months ended March 31, 2022, follows:
|
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Summary of Restricted Stock and Unit Activity | A summary of restricted stock activity for the three months ended March 31, 2022, follows:
|
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Schedule of Fair Value Assumptions for Units | The following weighted average assumptions were used in estimating the fair value of the performance stock units granted for the three months ended March 31, 2022.
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Summary of Performance Stock Unit Activity | A summary of performance stock unit activity for the three months ended March 31, 2022, follows:
|
Long-Term Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt |
|
Goodwill and Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||
Changes in Goodwill | Changes in goodwill during the three months ended March 31, 2022 were as follows:
|
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Changes in Intangible Assets, Net of Accumulated Amortization | Changes in intangible assets, net of accumulated amortization, during the three months ended March 31, 2022, were as follows:
|
Acquisitions (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the Bacharach assets acquired and liabilities assumed at the date of the acquisition:
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Pensions and Other Post-retirement Benefits (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost | Components of net periodic benefit cost consisted of the following:
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Derivative Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location and Fair Value of Assets Associated with Derivative Financial Instruments | The following table presents the unaudited Condensed Consolidated Balance Sheets location and fair value of assets and liabilities associated with derivative financial instruments:
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Income Statement Location and Impact of Derivative Financial Instruments | The following table presents the unaudited Condensed Consolidated Statements of Income location and impact of derivative financial instruments:
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Contingencies (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cumulative Trauma Product Liability Claims Activity | A summary of cumulative trauma product liability lawsuits and asserted cumulative trauma product liability claims activity is as follows:
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Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses | A summary of insurance receivables balance and activity related to cumulative trauma product liability losses is as follows:
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Schedule of Notes Receivable Balances from Insurance Companies | A summary of notes receivables from insurance companies balance is as follows:
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Schedule of Product Warranty Liability | The following table reconciles the changes in the Company's accrued warranty reserve:
|
Cash and Cash Equivalents (Details) $ in Thousands |
Mar. 31, 2022
USD ($)
|
---|---|
Cash and Cash Equivalents [Abstract] | |
Gross cash pool position | $ 64,304 |
Less: cash pool borrowings | (62,039) |
Net cash pool position | $ 2,265 |
Restructuring Charges - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 2,189 | $ 1,308 |
International | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,000 | 1,000 |
Americas | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 400 | $ 200 |
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished products | $ 97,004 | $ 87,657 |
Work in process | 15,562 | 6,534 |
Raw materials and supplies | 209,036 | 186,426 |
Total inventories | $ 321,602 | $ 280,617 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 618,451 | $ 613,607 |
Less: accumulated depreciation | (412,456) | (405,814) |
Property, plant and equipment, net | 205,995 | 207,793 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,070 | 5,131 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 138,610 | 136,272 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 445,746 | 435,652 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 29,025 | $ 36,552 |
Segment Information - Additional Information (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
Segment
| |
Segment Reporting [Abstract] | |
Number of geographical segments (in segments) | 4 |
Number of reportable segments (in segments) | 3 |
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Earnings Per Share [Abstract] | ||
Net income | $ 35,542 | $ 36,450 |
Preferred stock dividends | (10) | (10) |
Net income available to common equity | 35,532 | 36,440 |
Dividends and undistributed earnings allocated to participating securities | (4) | (14) |
Net income available to common shareholders | $ 35,528 | $ 36,426 |
Basic weighted-average shares outstanding (shares) | 39,291 | 39,094 |
Stock-based compensation awards (shares) | 232 | 326 |
Diluted weighted-average shares outstanding (shares) | 39,523 | 39,420 |
Antidilutive stock options (shares) | 0 | 0 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.90 | $ 0.93 |
Diluted (in dollars per share) | $ 0.90 | $ 0.92 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
Income Tax Contingency [Line Items] | |||
Effective income tax rate | 21.70% | 21.00% | |
Unrecognized tax benefits | $ 5,000 | ||
Insurance receivable and other noncurrent assets | 152,664 | $ 158,649 | |
Accrued interest and penalties related to uncertain tax positions | 900 | ||
Deferred tax asset | |||
Income Tax Contingency [Line Items] | |||
Insurance receivable and other noncurrent assets | $ 2,500 |
Stock Plans - Schedule of Stock Compensation Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Share-based Payment Arrangement [Abstract] | ||
Stock compensation expense | $ 3,730 | $ 3,293 |
Income tax expense | 914 | 794 |
Stock compensation expense, net of tax | $ 2,816 | $ 2,499 |
Stock Plans - Summary of Stock Option Activity (Details) |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Shares | |
Outstanding, beginning balance (in shares) | shares | 161,701 |
Exercised (in shares) | shares | (1,056) |
Outstanding, ending balance (in shares) | shares | 160,645 |
Exercisable (in shares) | shares | 160,461 |
Weighted Average Exercise Price (dollars per share) | |
Outstanding, beginning balance (dollars per share) | $ / shares | $ 45.47 |
Exercised (dollars per share) | $ / shares | 48.95 |
Outstanding, ending balance (dollars per share) | $ / shares | 45.45 |
Exercisable (dollars per share) | $ / shares | $ 45.44 |
Stock Plans - Summary of Restricted Stock and Unit Activity (Details) - Restricted Stock Activity |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Shares | |
Unvested, beginning balance (in shares) | shares | 118,343 |
Granted (in shares) | shares | 44,153 |
Vested (in shares) | shares | (31,111) |
Forfeited (in shares) | shares | (2,341) |
Unvested, ending balance (in shares) | shares | 129,044 |
Weighted Average Exercise Price (dollars per share) | |
Unvested, beginning balance (dollars per share) | $ / shares | $ 132.62 |
Granted (dollars per share) | $ / shares | 138.21 |
Vested (dollars per share) | $ / shares | 104.75 |
Forfeited (dollars per share) | $ / shares | 133.70 |
Unvested, ending Balance (dollars per share) | $ / shares | $ 141.23 |
Stock Plans - Weighted Average Risk Assumptions (Details) - Performance Stock Unit |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per option (dollars per share) | $ 142.44 |
Monte Carlo Approach | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair value per option (dollars per share) | $ 143.60 |
Risk-free interest rate | 1.72% |
Expected dividend yield | 1.14% |
Expected volatility | 34.40% |
MSA stock beta | 0.890 |
Stock Plans - Summary of Performance Stock Unit Activity (Details) - Performance Stock Unit |
3 Months Ended |
---|---|
Mar. 31, 2022
$ / shares
shares
| |
Shares | |
Unvested, beginning balance (in shares) | shares | 193,335 |
Granted (in shares) | shares | 81,162 |
Performance adjustments (in shares) | shares | (22,147) |
Vested (in shares) | shares | (55,447) |
Forfeited (in shares) | shares | (1,233) |
Unvested, ending balance (in shares) | shares | 195,670 |
Weighted Average Exercise Price (dollars per share) | |
Unvested, beginning balance (dollars per share) | $ / shares | $ 129.86 |
Granted (dollars per share) | $ / shares | 142.44 |
Performance adjustments (dollars per share) | $ / shares | 99.84 |
Vested (dollars per share) | $ / shares | 101.38 |
Forfeited (dollars per share) | $ / shares | 71.72 |
Unvested, ending Balance (dollars per share) | $ / shares | $ 146.50 |
Long-Term Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Senior revolving credit facility maturing in 2026, net of debt issuance costs | $ 327,951 | $ 324,060 |
Total | 599,414 | 597,651 |
Amounts due within one year | 8,021 | 0 |
Long-term debt, net of debt issuance costs | $ 591,393 | 597,651 |
2016 Senior Notes payable through 2031, 3.40%, net of debt issuance costs | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate percentage | 3.40% | |
Senior notes payable | $ 72,073 | 74,203 |
2021 Senior Notes payable through 2036, 2.69%, net of debt issuance costs | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate percentage | 2.69% | |
Senior notes payable | $ 99,695 | 99,694 |
2021 Senior Notes payable through 2036, 2.69%, net of debt issuance costs | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated interest rate percentage | 2.69% | |
Senior notes payable | $ 99,695 | $ 99,694 |
Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning balance | $ 636,858 |
Currency translation | (5,037) |
Ending balance | $ 631,821 |
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | $ 631,821 | $ 636,858 |
Americas | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 448,600 | |
International | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Goodwill | 183,200 | |
Trade name | Globe Holding Company LLC | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 60,000 |
Goodwill and Intangible Assets - Changes in Intangible Assets, Net of Accumulated Amortization (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Finite-lived Intangible Assets [Roll Forward] | |
Beginning balance | $ 306,948 |
Amortization expense | (5,288) |
Currency translation | (1,935) |
Ending balance | $ 299,725 |
Pensions and Other Post-retirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,099 | $ 3,242 |
Interest cost | 3,613 | 2,817 |
Expected return on plan assets | (12,418) | (9,147) |
Amortization of prior service cost (credit) | 36 | 66 |
Recognized net actuarial losses | 3,018 | 4,421 |
Settlements | 0 | (1,879) |
Net periodic benefit (income) cost | (2,652) | (480) |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 82 | 99 |
Interest cost | 148 | 116 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | (84) | (90) |
Recognized net actuarial losses | 310 | 399 |
Settlements | 0 | 0 |
Net periodic benefit (income) cost | $ 456 | $ 524 |
Pensions and Other Post-retirement Benefits - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Retirement Benefits [Abstract] | ||
Pension plans contributions | $ 1.9 | $ 1.9 |
Total estimated pension plans contributions for the fiscal year | $ 7.7 |
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Foreign Exchange Forward | ||
Derivative [Line Items] | ||
Notional amount of open forward contracts | $ 99.9 | $ 99.0 |
Derivative Financial Instruments - Balance Sheet Location and Fair Value of Assets Associated with Derivative Financial Instruments (Details) - Not designated as hedging instrument - USD ($) $ in Thousands |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: other current liabilities | $ 242 | $ 128 |
Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Foreign exchange contracts: prepaid expenses and other current assets | $ 419 | $ 619 |
Derivative Financial Instruments - Income Statement Location and Impact of Derivative Financial Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Not designated as hedging instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange contracts | $ 2,765 | $ 3,388 |
Fair Value Measurements (Details) - USD ($) $ in Millions |
Mar. 31, 2022 |
Dec. 31, 2021 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities, amortized cost basis | $ 40.0 | $ 49.0 |
investments, fair value | 40.0 | 49.0 |
Reported Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | 272.0 | 274.0 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value disclosure | $ 256.0 | $ 280.0 |
Contingencies - Summary of Cumulative Trauma Product Liability Claims Activity (Details) |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022
lawsuit
claim
|
Dec. 31, 2021
claim
lawsuit
|
|
Lawsuit | ||
Loss Contingency, Quantities [Roll Forward] | ||
Beginning of period | lawsuit | 1,675 | 1,622 |
New lawsuits | lawsuit | 72 | 432 |
Settled and dismissed lawsuits | lawsuit | (56) | (379) |
End of period | lawsuit | 1,691 | 1,675 |
Damages from product defects | ||
Loss Contingency, Quantities [Roll Forward] | ||
Beginning of period | claim | 4,554 | 2,878 |
New lawsuits | claim | 122 | 2,134 |
Settled and dismissed lawsuits | claim | (81) | (458) |
End of period | claim | 4,595 | 4,554 |
Contingencies - Summary of Insurance Receivable Balances and Activity Related to Cumulative Trauma Product Liability Losses (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||
Balance beginning of period | $ 130.2 | $ 97.0 |
Additions | 0.1 | 43.5 |
Collections and other adjustments | (3.9) | (10.3) |
Balance end of period | $ 126.4 | $ 130.2 |
Contingencies - Schedule of Notes Receivable Balances from Insurance Companies (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Movement in Loss Contingency Receivable, Increase (Decrease) [Roll Forward] | ||
Balance beginning of period | $ 48.5 | $ 52.3 |
Additions | 0.3 | 1.3 |
Collections | 0.0 | (5.1) |
Balance end of period | $ 48.8 | $ 48.5 |
Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
|
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning warranty reserve | $ 12,423 | $ 11,428 |
Warranty payments | (2,051) | (8,987) |
Warranty claims | 2,160 | 10,225 |
Provision for product warranties and other adjustments | (292) | (243) |
Ending warranty reserve | $ 12,240 | $ 12,423 |
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