QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | |||||
March 31, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowances of $ | |||||||||||
Inventories, net | |||||||||||
Unbilled contract revenue | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total Current Assets | |||||||||||
Property, plant, and equipment, net | |||||||||||
Goodwill | |||||||||||
Identifiable intangible assets, net | |||||||||||
Investments | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities | |||||||||||
Accounts payable | $ | $ | |||||||||
Customer advances and billings in excess of contract revenue | |||||||||||
Accrued salaries, wages, and benefits | |||||||||||
Accrued income taxes | |||||||||||
Current portion of warranty reserve | |||||||||||
Current convertible notes | |||||||||||
Operating lease liabilities, current | |||||||||||
Other current liabilities | |||||||||||
Total Current Liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term deferred tax liabilities | |||||||||||
Accrued pension liabilities | |||||||||||
Operating lease liabilities, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Total Liabilities |
Equity | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock; | ( | ( | |||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Total Chart Industries, Inc. Shareholders’ Equity | |||||||||||
Noncontrolling interests | |||||||||||
Total Equity | |||||||||||
TOTAL LIABILITIES AND EQUITY | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Gross profit | |||||||||||
Selling, general, and administrative expenses | |||||||||||
Amortization expense | |||||||||||
Operating expenses | |||||||||||
Operating income | |||||||||||
Interest expense, net | |||||||||||
Unrealized (gain) loss on investments in equity securities | ( | ||||||||||
Financing costs amortization | |||||||||||
Foreign currency (gain) loss and other | ( | ||||||||||
Income from continuing operations before income taxes | |||||||||||
Income tax expense | |||||||||||
Net income from continuing operations | |||||||||||
Income from discontinued operations, net of tax | |||||||||||
Net income | |||||||||||
Less: Income attributable to noncontrolling interests of continuing operations, net of taxes | |||||||||||
Net income attributable to Chart Industries, Inc. | $ | $ | |||||||||
Net income attributable to Chart Industries, Inc. | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Income from discontinued operations, net of tax | |||||||||||
Net income attributable to Chart Industries, Inc. | $ | $ | |||||||||
Basic earnings per common share attributable to Chart Industries, Inc.: | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Income from discontinued operations | |||||||||||
Net income attributable to Chart Industries, Inc. | $ | $ | |||||||||
Diluted earnings per common share attributable to Chart Industries, Inc. | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Income from discontinued operations | |||||||||||
Net income attributable to Chart Industries, Inc. | $ | $ | |||||||||
Weighted-average number of common shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Comprehensive income (loss), net of taxes | $ | $ | ( | ||||||||
Less: Comprehensive income attributable to noncontrolling interests, net of taxes | |||||||||||
Comprehensive income (loss) attributable to Chart Industries, Inc., net of taxes | $ | $ | ( |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Interest accretion of convertible notes discount | |||||||||||
Employee share-based compensation expense | |||||||||||
Financing costs amortization | |||||||||||
Unrealized foreign currency transaction gain | ( | ||||||||||
Unrealized (gain) loss on investments in equity securities | ( | ||||||||||
Other non-cash operating activities | |||||||||||
Changes in assets and liabilities, net of acquisitions: | |||||||||||
Accounts receivable | |||||||||||
Inventories | ( | ( | |||||||||
Unbilled contract revenues and other assets | ( | ||||||||||
Accounts payable and other liabilities | ( | ||||||||||
Customer advances and billings in excess of contract revenue | ( | ( | |||||||||
Net Cash Provided By Operating Activities | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of businesses, net of cash acquired | ( | ||||||||||
Investments | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Government grants | |||||||||||
Net Cash Used In Investing Activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Borrowings on revolving credit facilities | |||||||||||
Repayments on revolving credit facilities | ( | ( | |||||||||
Repayments on term loan | ( | ||||||||||
Proceeds from exercise of stock options | |||||||||||
Common stock repurchases from share-based compensation plans | ( | ( | |||||||||
Common stock repurchases | ( | ||||||||||
Net Cash Provided By (Used In) Financing Activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents (1) | ( | ( | |||||||||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period | |||||||||||
CASH, CASH EQUIVALENTS, RESTRICTED CASH, AND RESTRICTED CASH EQUIVALENTS AT END OF PERIOD (2) | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interests | ||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | Treasury Stock | Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ( | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of change in accounting principle (1) | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common stock issued from share-based compensation plans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases from share-based compensation plans | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Dividend distribution to noncontrolling interest | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Other | — | — | 0.1 | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Non-controlling Interests | ||||||||||||||||||||||||||||||||||||||||||||
Shares Outstanding | Amount | Treasury Stock | Retained Earnings | Total Equity | |||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Common stock issued from share-based compensation plans | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Common stock repurchases (2) | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Common stock repurchases from share-based compensation plans | ( | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | ( | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | Adjustments due to ASU 2020-06 adoption | Balance at January 1, 2021 | |||||||||||||||
Liabilities | |||||||||||||||||
Accrued income taxes | $ | $ | ( | $ | |||||||||||||
Current convertible notes (1) | |||||||||||||||||
Long-term deferred tax liabilities | ( | ||||||||||||||||
Equity | |||||||||||||||||
Additional paid-in-capital | $ | $ | ( | $ | |||||||||||||
Retained earnings |
Three Months Ended March 31, 2020 | |||||
Sales | $ | ||||
Cost of sales | |||||
Selling, general and administrative expenses | |||||
Operating income (1) | |||||
Income before income taxes from discontinued operations | |||||
Income tax expense | |||||
Income from discontinued operations, net of tax | $ |
Three Months Ended March 31, 2020 | |||||
Net cash provided by (used in): | |||||
Operating activities | $ | ||||
Investing activities | ( | ||||
Net cash provided by discontinued operations | $ |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | |||||||||||||||||||||||||||||||||||
Sales to external customers | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) (1) (2) | ( |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Corporate | Consolidated | |||||||||||||||||||||||||||||||||||
Sales to external customers | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Depreciation and amortization expense | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) (1) | ( |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Europe, Middle East, Africa and India | ( | ||||||||||||||||||||||||||||||||||
Asia-Pacific | ( | ||||||||||||||||||||||||||||||||||
Rest of the World | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||
North America | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Europe, Middle East, Africa and India | ( | ||||||||||||||||||||||||||||||||||
Asia-Pacific | ( | ||||||||||||||||||||||||||||||||||
Rest of the World | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ |
March 31, 2021 | December 31, 2020 | |||||||||||||
Cryo Tank Solutions | $ | $ | ||||||||||||
Heat Transfer Systems | ||||||||||||||
Specialty Products | ||||||||||||||
Repair, Service & Leasing | ||||||||||||||
Total assets of reportable segments | ||||||||||||||
Goodwill (1) | ||||||||||||||
Identifiable intangible assets, net (1) | ||||||||||||||
Corporate | ||||||||||||||
Total | $ | $ |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Point in time | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Over time | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Intersegment Eliminations | Consolidated | ||||||||||||||||||||||||||||||
Point in time | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Over time | ( | ||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | ( | $ |
March 31, 2021 | December 31, 2020 | Year-to-date Change ($) | Year-to-date Change (%) | ||||||||||||||||||||
Contract assets | |||||||||||||||||||||||
Accounts receivable, net of allowances | $ | $ | $ | ( | ( | % | |||||||||||||||||
Unbilled contract revenue | ( | ( | % | ||||||||||||||||||||
Contract liabilities | |||||||||||||||||||||||
Customer advances and billings in excess of contract revenue | $ | $ | $ | ( | ( | % | |||||||||||||||||
Long-term deferred revenue | ( | ( | % |
Investments in Equity Securities, Level 1 (1) | Investments in Equity Securities, Level 2 (2) | Subtotal | Investments in Equity Securities, All Others (3) (4) (5) | Investments in Equity Securities, Total | |||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
New investments | |||||||||||||||||||||||||||||
(Decrease) increase in fair value of investments in equity securities | ( | ||||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ |
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter (1) | |||||
Total future minimum lease payments | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Raw materials and supplies | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
Total inventories, net | $ | $ |
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Consolidated | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill acquired during the period (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase price adjustment (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||
Weighted-average Estimated Useful Life | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | |||||||||||||||||||||||||
Finite-lived intangible assets: | |||||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | ( | |||||||||||||||||||||||
Unpatented technology | ( | ( | |||||||||||||||||||||||||||
Patents and other | ( | ( | |||||||||||||||||||||||||||
Trademarks and trade names | ( | ( | |||||||||||||||||||||||||||
Land use rights | ( | ( | |||||||||||||||||||||||||||
Total finite-lived intangible assets | ( | ( | |||||||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||
Trademarks and trade names | — | — | |||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | ( |
For the Year Ending December 31, | |||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 |
March 31, 2021 | December 31, 2020 | ||||||||||
Current | $ | $ | |||||||||
Long-term | |||||||||||
Total China Government Grants | $ | $ |
March 31, 2021 | December 31, 2020 | ||||||||||
Senior secured revolving credit facility and term loan: | |||||||||||
Term loan due June 2024 (1) | $ | $ | |||||||||
Senior secured revolving credit facility due June 2024 (2) (3) | |||||||||||
Unamortized debt issuance costs | ( | ( | |||||||||
Senior secured revolving credit facility and term loan, net of debt issuance costs | |||||||||||
Convertible notes due November 2024: | |||||||||||
Principal amount | |||||||||||
Unamortized discount (4) | ( | ||||||||||
Unamortized debt issuance costs | ( | ( | |||||||||
Convertible notes due November 2024, net of unamortized discount and debt issuance costs | |||||||||||
Foreign facilities | |||||||||||
Total debt, net of unamortized discount and debt issuance costs | |||||||||||
Less: current maturities | |||||||||||
Long-term debt | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Interest expense, term loan due June 2024 | $ | $ | |||||||||
Interest expense, senior secured revolving credit facility due June 2024 | |||||||||||
Interest expense, senior secured revolving credit facility and term loan due June 2024 | $ | $ | |||||||||
Financing costs amortization, senior secured revolving credit facility and term loan due 2024 | $ | $ |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
2024 Notes, interest accretion of convertible notes discount | $ | $ | |||||||||
2024 Notes, | |||||||||||
2024 Notes, total interest expense | $ | $ | |||||||||
2024 Notes, financing costs amortization | $ | $ |
Balance at December 31, 2020 | $ | ||||
Issued – warranty expense | ( | ||||
Warranty usage | |||||
Balance at March 31, 2021 | $ |
SES | BIG | Total | |||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ||||||||||||||
Increase in fair value of contingent consideration liabilities | |||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ |
Foreign currency translation adjustments | Pension liability adjustments, net of taxes | Accumulated other comprehensive income (loss) | |||||||||||||||
Balance at December 31, 2020 | $ | $ | ( | $ | |||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | |||||||||||||||||
Net current-period other comprehensive (loss) income, net of taxes | ( | ( | |||||||||||||||
Balance at March 31, 2021 | $ | ( | $ | ( | $ | ( |
Foreign currency translation adjustments | Pension liability adjustments, net of taxes | Accumulated other comprehensive loss | |||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | ( | $ | ( | |||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss, net of income taxes | |||||||||||||||||
Net current-period other comprehensive (loss) income, net of taxes | ( | ( | |||||||||||||||
Balance at March 31, 2020 | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Net income attributable to Chart Industries, Inc. | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Income from discontinued operations, net of tax | |||||||||||
Net income attributable to Chart Industries, Inc. | $ | $ | |||||||||
Earnings per common share – basic: | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Income from discontinued operations | |||||||||||
Net income attributable to Chart Industries, Inc. | $ | $ | |||||||||
Earnings per common share – diluted: | |||||||||||
Income from continuing operations | $ | $ | |||||||||
Income from discontinued operations | |||||||||||
Net income attributable to Chart Industries, Inc. | $ | $ | |||||||||
Weighted average number of common shares outstanding – basic | |||||||||||
Incremental shares issuable upon assumed conversion and exercise of share-based awards | |||||||||||
Incremental shares issuable due to dilutive effect of convertible notes | |||||||||||
Incremental shares issuable due to dilutive effect of warrants | |||||||||||
Weighted average number of common shares outstanding – diluted |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Share-based awards | |||||||||||
Convertible note hedge and capped call transactions (1) | |||||||||||
Warrants | |||||||||||
Total anti-dilutive securities |
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Severance: | |||||||||||
Cost of sales | $ | $ | |||||||||
Selling, general, and administrative expenses | |||||||||||
Total severance costs | |||||||||||
Other restructuring: | |||||||||||
Cost of sales | |||||||||||
Total other restructuring costs | |||||||||||
Total restructuring costs | $ | $ |
Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Corporate | Consolidated | ||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||||||||||||||
Cash payments and other | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | $ | $ | $ | $ | $ |
Three Months Ended March 31, 2020 | |||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | Heat Transfer Systems | Specialty Products | Repair, Service & Leasing | Corporate | Consolidated | ||||||||||||||||||||||||||||||
Balance at December 30, 2019 | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Restructuring charges | |||||||||||||||||||||||||||||||||||
Cash payments and other | ( | ( | ( | ||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | $ | $ |
Three Months Ended | Current Quarter vs. Prior Year Same Quarter | Current Quarter vs. Prior Sequential Quarter | |||||||||||||||||||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | December 31, 2020 | Variance ($) | Variance (%) | Variance ($) | Variance (%) | |||||||||||||||||||||||||||||||||||
Sales | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | $ | 103.9 | $ | 98.0 | $ | 110.5 | $ | 5.9 | 6.0 | % | $ | (6.6) | (6.0) | % | |||||||||||||||||||||||||||
Heat Transfer Systems | 69.2 | 112.9 | 78.9 | (43.7) | (38.7) | % | (9.7) | (12.3) | % | ||||||||||||||||||||||||||||||||
Specialty Products | 77.3 | 52.9 | 85.1 | 24.4 | 46.1 | % | (7.8) | (9.2) | % | ||||||||||||||||||||||||||||||||
Repair, Service & Leasing | 41.4 | 40.7 | 41.0 | 0.7 | 1.7 | % | 0.4 | 1.0 | % | ||||||||||||||||||||||||||||||||
Intersegment eliminations | (3.3) | (2.6) | (3.1) | (0.7) | 26.9 | % | (0.2) | 6.5 | % | ||||||||||||||||||||||||||||||||
Consolidated | $ | 288.5 | $ | 301.9 | $ | 312.4 | $ | (13.4) | (4.4) | % | $ | (23.9) | (7.7) | % | |||||||||||||||||||||||||||
Gross Profit | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | $ | 25.2 | $ | 24.1 | $ | 24.0 | $ | 1.1 | 4.6 | % | $ | 1.2 | 5.0 | % | |||||||||||||||||||||||||||
Heat Transfer Systems | 15.8 | 26.1 | 19.5 | (10.3) | (39.5) | % | (3.7) | (19.0) | % | ||||||||||||||||||||||||||||||||
Specialty Products | 28.2 | 20.3 | 26.5 | 7.9 | 38.9 | % | 1.7 | 6.4 | % | ||||||||||||||||||||||||||||||||
Repair, Service & Leasing | 14.7 | 11.8 | 17.9 | 2.9 | 24.6 | % | (3.2) | (17.9) | % | ||||||||||||||||||||||||||||||||
Consolidated | $ | 83.9 | $ | 82.3 | $ | 87.9 | $ | 1.6 | 1.9 | % | $ | (4.0) | (4.6) | % | |||||||||||||||||||||||||||
Gross Profit Margin | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | 24.3 | % | 24.6 | % | 21.7 | % | |||||||||||||||||||||||||||||||||||
Heat Transfer Systems | 22.8 | % | 23.1 | % | 24.7 | % | |||||||||||||||||||||||||||||||||||
Specialty Products | 36.5 | % | 38.4 | % | 31.1 | % | |||||||||||||||||||||||||||||||||||
Repair, Service & Leasing | 35.5 | % | 29.0 | % | 43.7 | % | |||||||||||||||||||||||||||||||||||
Consolidated | 29.1 | % | 27.3 | % | 28.1 | % | |||||||||||||||||||||||||||||||||||
SG&A Expenses | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | $ | 8.9 | $ | 11.1 | $ | 11.6 | $ | (2.2) | (19.8) | % | $ | (2.7) | (23.3) | % | |||||||||||||||||||||||||||
Heat Transfer Systems | 7.0 | 11.2 | 8.2 | (4.2) | (37.5) | % | (1.2) | (14.6) | % | ||||||||||||||||||||||||||||||||
Specialty Products | 9.1 | 6.1 | 6.4 | 3.0 | 49.2 | % | 2.7 | 42.2 | % | ||||||||||||||||||||||||||||||||
Repair, Service & Leasing | 4.4 | 4.4 | 4.1 | — | — | % | 0.3 | 7.3 | % | ||||||||||||||||||||||||||||||||
Corporate | 16.8 | 19.7 | 10.7 | (2.9) | (14.7) | % | 6.1 | 57.0 | % | ||||||||||||||||||||||||||||||||
Consolidated | $ | 46.2 | $ | 52.5 | $ | 41.0 | $ | (6.3) | (12.0) | % | $ | 5.2 | 12.7 | % | |||||||||||||||||||||||||||
SG&A Expenses (% of Sales) | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | 8.6 | % | 11.3 | % | 10.5 | % | |||||||||||||||||||||||||||||||||||
Heat Transfer Systems | 10.1 | % | 9.9 | % | 10.4 | % | |||||||||||||||||||||||||||||||||||
Specialty Products | 11.8 | % | 11.5 | % | 7.5 | % | |||||||||||||||||||||||||||||||||||
Repair, Service & Leasing | 10.6 | % | 10.8 | % | 10.0 | % | |||||||||||||||||||||||||||||||||||
Consolidated | 16.0 | % | 17.4 | % | 13.1 | % |
Three Months Ended | Current Quarter vs. Prior Year Same Quarter | Current Quarter vs. Prior Sequential Quarter | |||||||||||||||||||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | December 31, 2020 | Variance ($) | Variance (%) | Variance ($) | Variance (%) | |||||||||||||||||||||||||||||||||||
Operating Income (Loss) (1) | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | $ | 15.6 | $ | 11.6 | $ | 11.2 | $ | 4.0 | 34.5 | % | $ | 4.4 | 39.3 | % | |||||||||||||||||||||||||||
Heat Transfer Systems (2) | 3.9 | 5.5 | (9.9) | (1.6) | (29.1) | % | 13.8 | (139.4) | % | ||||||||||||||||||||||||||||||||
Specialty Products (3) | 17.9 | 13.8 | 19.9 | 4.1 | 29.7 | % | (2.0) | (10.1) | % | ||||||||||||||||||||||||||||||||
Repair, Service & Leasing | 8.3 | 4.6 | 12.1 | 3.7 | 80.4 | % | (3.8) | (31.4) | % | ||||||||||||||||||||||||||||||||
Corporate (4) (5) | (16.8) | (19.7) | (10.8) | 2.9 | (14.7) | % | (6.0) | 55.6 | % | ||||||||||||||||||||||||||||||||
Consolidated | $ | 28.9 | $ | 15.8 | $ | 22.5 | $ | 13.1 | 82.9 | % | $ | 6.4 | 28.4 | % | |||||||||||||||||||||||||||
Operating Margin | |||||||||||||||||||||||||||||||||||||||||
Cryo Tank Solutions | 15.0 | % | 11.8 | % | 10.1 | % | |||||||||||||||||||||||||||||||||||
Heat Transfer Systems | 5.6 | % | 4.9 | % | (12.5) | % | |||||||||||||||||||||||||||||||||||
Specialty Products | 23.2 | % | 26.1 | % | 23.4 | % | |||||||||||||||||||||||||||||||||||
Repair, Service & Leasing | 20.0 | % | 11.3 | % | 29.5 | % | |||||||||||||||||||||||||||||||||||
Consolidated | 10.0 | % | 5.2 | % | 7.2 | % |
Three Months Ended | Current Quarter vs. Prior Year Same Quarter | ||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | Variance ($) | Variance (%) | ||||||||||||||||||||
Sales | $ | 103.9 | $ | 98.0 | $ | 5.9 | 6.0 | % | |||||||||||||||
Gross Profit | 25.2 | 24.1 | 1.1 | 4.6 | % | ||||||||||||||||||
Gross Profit Margin | 24.3 | % | 24.6 | % | |||||||||||||||||||
SG&A Expenses | $ | 8.9 | $ | 11.1 | $ | (2.2) | (19.8) | % | |||||||||||||||
SG&A Expenses (% of Sales) | 8.6 | % | 11.3 | % | |||||||||||||||||||
Operating Income | $ | 15.6 | $ | 11.6 | $ | 4.0 | 34.5 | % | |||||||||||||||
Operating Margin | 15.0 | % | 11.8 | % |
Three Months Ended | Current Quarter vs. Prior Year Same Quarter | ||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | Variance ($) | Variance (%) | ||||||||||||||||||||
Sales | $ | 69.2 | $ | 112.9 | $ | (43.7) | (38.7) | % | |||||||||||||||
Gross Profit | 15.8 | 26.1 | (10.3) | (39.5) | % | ||||||||||||||||||
Gross Profit Margin | 22.8 | % | 23.1 | % | |||||||||||||||||||
SG&A Expenses | $ | 7.0 | $ | 11.2 | $ | (4.2) | (37.5) | % | |||||||||||||||
SG&A Expenses (% of Sales) | 10.1 | % | 9.9 | % | |||||||||||||||||||
Operating Income | $ | 3.9 | $ | 5.5 | $ | (1.6) | (29.1) | % | |||||||||||||||
Operating Margin | 5.6 | % | 4.9 | % |
Three Months Ended | Current Quarter vs. Prior Year Same Quarter | ||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | Variance ($) | Variance (%) | ||||||||||||||||||||
Sales | $ | 77.3 | $ | 52.9 | $ | 24.4 | 46.1 | % | |||||||||||||||
Gross Profit | 28.2 | 20.3 | 7.9 | 38.9 | % | ||||||||||||||||||
Gross Profit Margin | 36.5 | % | 38.4 | % | |||||||||||||||||||
SG&A Expenses | $ | 9.1 | $ | 6.1 | $ | 3.0 | 49.2 | % | |||||||||||||||
SG&A Expenses (% of Sales) | 11.8 | % | 11.5 | % | |||||||||||||||||||
Operating Income | $ | 17.9 | $ | 13.8 | $ | 4.1 | 29.7 | % | |||||||||||||||
Operating Margin | 23.2 | % | 26.1 | % |
Three Months Ended | Current Quarter vs. Prior Year Same Quarter | ||||||||||||||||||||||
March 31, 2021 | March 31, 2020 | Variance ($) | Variance (%) | ||||||||||||||||||||
Sales | $ | 41.4 | $ | 40.7 | $ | 0.7 | 1.7 | % | |||||||||||||||
Gross Profit | 14.7 | 11.8 | 2.9 | 24.6 | % | ||||||||||||||||||
Gross Profit Margin | 35.5 | % | 29.0 | % | |||||||||||||||||||
SG&A Expenses | $ | 4.4 | $ | 4.4 | $ | — | — | % | |||||||||||||||
SG&A Expenses (% of Sales) | 10.6 | % | 10.8 | % | |||||||||||||||||||
Operating Income | $ | 8.3 | $ | 4.6 | $ | 3.7 | 80.4 | % | |||||||||||||||
Operating Margin | 20.0 | % | 11.3 | % |
Three Months Ended | |||||||||||||||||
March 31, 2021 | March 31, 2020 | December 31, 2020 | |||||||||||||||
Orders | |||||||||||||||||
Cryo Tank Solutions | $ | 129.5 | $ | 100.9 | $ | 132.0 | |||||||||||
Heat Transfer Systems | 104.9 | 91.6 | 139.9 | ||||||||||||||
Specialty Products | 144.5 | 57.1 | 94.4 | ||||||||||||||
Repair, Service & Leasing | 40.5 | 42.9 | 54.5 | ||||||||||||||
Intersegment eliminations | (2.2) | (6.7) | (3.8) | ||||||||||||||
Consolidated | $ | 417.2 | $ | 285.8 | $ | 417.0 |
As of | |||||||||||||||||
March 31, 2021 | March 31, 2020 | December 31, 2020 | |||||||||||||||
Backlog | |||||||||||||||||
Cryo Tank Solutions | $ | 245.8 | $ | 222.3 | $ | 222.6 | |||||||||||
Heat Transfer Systems | 361.4 | 334.4 | 329.2 | ||||||||||||||
Specialty Products | 270.5 | 130.3 | 199.7 | ||||||||||||||
Repair, Service & Leasing | 57.4 | 39.9 | 63.1 | ||||||||||||||
Intersegment eliminations | (1.0) | (3.6) | (4.6) | ||||||||||||||
Consolidated | $ | 934.1 | $ | 723.3 | $ | 810.0 |
Issuer Purchases of Equity Securities | |||||||||||||||||||||||
Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share (1) | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (2) | |||||||||||||||||||
January 1 - 31, 2021 | 21,151 | $ | 119.32 | — | $ | — | |||||||||||||||||
February 1 – 28, 2021 | 2,643 | 154.54 | — | — | |||||||||||||||||||
March 1 – 31, 2021 | 382 | 150.88 | — | — | |||||||||||||||||||
Total | 24,176 | 123.67 | — | $ | — |
Chart Industries, Inc. | ||
(Registrant) |
Date: | April 22, 2021 | By: | /s/ Jillian C. Evanko | ||||||||
Jillian C. Evanko | |||||||||||
Chief Executive Officer and President | |||||||||||
(Principal Executive Officer) | |||||||||||
Date: | April 22, 2021 | By: | /s/ Scott W. Merkle | ||||||||
Scott W. Merkle | |||||||||||
Vice President, Chief Financial Officer and Treasurer | |||||||||||
(Principal Financial Officer) |
/s/ Jillian C. Evanko | |||||
Jillian C. Evanko | |||||
Chief Executive Officer and President |
/s/ Scott W. Merkle | |||||
Scott W. Merkle | |||||
Vice President, Chief Financial Officer and Treasurer |
/s/ Jillian C. Evanko | |||||
Jillian C. Evanko | |||||
Chief Executive Officer and President |
/s/ Scott W. Merkle | |||||
Scott W. Merkle | |||||
Vice President, Chief Financial Officer and Treasurer |
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 7.9 | $ 8.4 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 36,347,850 | 36,185,829 |
Common stock, shares outstanding (shares) | 36,347,850 | 36,185,829 |
Treasury stock (shares) | 760,782 |
Condensed Consolidated Statements of Cash Flows (Unaudited) (Parentheticals) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Statement of Cash Flows [Abstract] | ||
Restricted cash and cash equivalents, noncurrent | $ 1.0 | $ 1.0 |
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) $ in Millions |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
[2] | Common Stock |
Additional Paid-in Capital |
Additional Paid-in Capital
Cumulative Effect, Period of Adoption, Adjustment
|
[2] | Treasury Stock |
Retained Earnings |
Retained Earnings
Cumulative Effect, Period of Adoption, Adjustment
|
[2] | Accumulated Other Comprehensive Income (Loss) |
Non-controlling Interests |
||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2019 | $ 1,232.4 | $ 0.4 | $ 762.8 | $ 0.0 | $ 500.3 | $ (35.9) | $ 4.8 | ||||||||||
Beginning balance (shares) at Dec. 31, 2019 | 35,800,000 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income | 8.5 | 8.5 | |||||||||||||||
Other comprehensive loss | (9.9) | (9.9) | |||||||||||||||
Share-based compensation expense | 2.9 | 2.9 | |||||||||||||||
Common stock issued from share-based compensation plans | 2.0 | 2.0 | |||||||||||||||
Common stock issued from share-based compensation plans (shares) | 160,000 | ||||||||||||||||
Common stock repurchases | [1] | (19.3) | (19.3) | ||||||||||||||
Common stock repurchases from share-based compensation plans | (1.7) | (1.7) | |||||||||||||||
Common stock repurchases from share-based compensation plans (in shares) | (10,000.00) | ||||||||||||||||
Ending balance at Mar. 31, 2020 | 1,214.9 | $ 0.4 | 766.0 | (19.3) | 508.8 | (45.8) | 4.8 | ||||||||||
Ending balance (shares) at Mar. 31, 2020 | 35,950,000 | ||||||||||||||||
Beginning balance at Dec. 31, 2020 | $ 1,579.3 | $ (26.2) | $ 0.4 | 780.8 | $ (36.9) | (19.3) | 808.4 | $ 10.7 | 2.4 | 6.6 | |||||||
Beginning balance (shares) at Dec. 31, 2020 | 36,185,829 | 36,190,000 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||||
Net income | $ 26.1 | 25.6 | 0.5 | ||||||||||||||
Other comprehensive loss | (19.2) | (19.2) | |||||||||||||||
Share-based compensation expense | 3.4 | 3.4 | |||||||||||||||
Common stock issued from share-based compensation plans | 5.6 | 5.6 | |||||||||||||||
Common stock issued from share-based compensation plans (shares) | 180,000 | ||||||||||||||||
Common stock repurchases from share-based compensation plans | (3.0) | (3.0) | |||||||||||||||
Common stock repurchases from share-based compensation plans (in shares) | (20,000.00) | ||||||||||||||||
Dividend distribution to noncontrolling interest | 0.0 | ||||||||||||||||
Other | 0.0 | (0.1) | |||||||||||||||
Ending balance at Mar. 31, 2021 | $ 1,566.0 | $ 0.4 | $ 750.0 | $ (19.3) | $ 844.7 | $ (16.8) | $ 7.0 | ||||||||||
Ending balance (shares) at Mar. 31, 2021 | 36,347,850 | 36,350,000 | |||||||||||||||
|
Condensed Consolidated Statements of Equity (Unaudited) (Parentheticals) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2020
USD ($)
| ||||
Statement of Stockholders' Equity [Abstract] | ||||
Common stock repurchases | $ 19.3 | [1] | ||
|
Basis of Preparation |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Preparation | Basis of Preparation The accompanying unaudited condensed consolidated financial statements of Chart Industries, Inc. and its consolidated subsidiaries (herein referred to as the “Company,” “Chart,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Nature of Operations: We are a leading independent global manufacturer of highly engineered equipment servicing multiple applications in the Clean Energy and Industrial Gas markets. Our unique product portfolio is used in every phase of the liquid gas supply chain, including upfront engineering, service and repair. Being at the forefront of the clean energy transition, Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 Capture amongst other applications. We are committed to excellence in environmental, social and corporate governance (ESG) issues both for our company as well as our customers. With over 25 global locations from the United States to Asia, Australia, India, Europe and South America, we maintain accountability and transparency to our team members, suppliers, customers and communities. Principles of Consolidation: The unaudited condensed consolidated financial statements include the accounts of Chart Industries, Inc. and its subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. Reclassifications: As discussed in our Annual Report on Form 10-K for the year ended December 31, 2020, on October 1, 2020, we closed on the sale of our cryobiological products business to Cryoport, Inc. (CYRX) (refer to Note 2, “Discontinued Operations” for further information). Furthermore, we reorganized our reporting structure such that the composition of our reportable segments changed effective October 1, 2020 (refer to Note 3, “Reportable Segments” for further information). As such, certain reclassifications have been made to the statement of income and comprehensive income for the three months ended March 31, 2020 and certain notes to the unaudited condensed consolidated financial statements in order to conform to the 2021 presentation. Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. These estimates may also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions. While our production has been considered “essential” in all locations we operate in, we have experienced, and may again experience in the future, temporary facility closures while awaiting appropriate government approvals in certain jurisdictions. The Covid-19 outbreak could also disrupt our supply chain and materially adversely impact our ability to secure supplies for our facilities, which could materially adversely affect our operations. There may also be long-term effects on our customers in and the economies of affected countries. As a result of these uncertainties, actual results could differ from those estimates and assumptions. If the economy or markets in which we operate remain weak or deteriorate further, our business, financial condition and results of operations may be materially and adversely impacted. Share Repurchase Program: As discussed in our Annual Report on Form 10-K for the year ended December 31, 2020, on March 11, 2020, our Board of Directors authorized a share repurchase program for up to $75 million of the Company’s common stock over the next twelve months through various means, including open market transactions, block purchases, privately negotiated transactions or otherwise in accordance with applicable federal securities laws, including Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. During the first quarter of 2020, we repurchased 0.76 shares of our common stock at an average price of $25.40 per share for a total purchase price of $19.3. We suspended the program on March 20, 2020 (the “Suspension Date”) in light of uncertainty resulting from the Covid-19 pandemic and the desire to conserve cash resources. On March 11, 2021, the share repurchase program expired with no further repurchases since the Suspension Date. Recently Issued Accounting Standards (Not Yet Adopted): In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” and in January 2021, the FASB subsequently issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” ASU 2020-04 and the subsequent modifications are identified as Accounting Standards Codification (“ASC”) 848 (“ASC 848”). ASC 848 simplifies the accounting for modifying contracts (including those in hedging relationships) that refer to LIBOR and other interbank offered rates that are expected to be discontinued due to reference rate reform. The amendments in ASC 848 are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in ASC 848 must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. We expect application of the amendments to impact accounting for our senior secured revolving credit facility due June 2024. We are currently assessing the effect ASC 848 will have on our financial position, results of operations, and disclosures. Recently Adopted Accounting Standards: In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entities Own Equity (Subtopic 815-40).” This ASU simplifies accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separating embedded conversion features from convertible instruments. The guidance is effective for fiscal years beginning after December 15, 2021. We adopted this guidance effective January 1, 2021 under the modified retrospective adoption approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption. The comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. As a result of the adoption of ASU 2020-06, our convertible notes due November 2024 are no longer bifurcated into separate liability and equity components in our March 31, 2021 condensed consolidated balance sheet. Rather, the $258.8 principal amount of our convertible notes due November 2024 was classified as a liability only in our March 31, 2021 condensed consolidated balance sheet. Upon adoption of ASU 2020-06, we recorded an adjustment to the convertible notes liability component, equity component (additional paid-in-capital) and retained earnings. This adjustment was calculated based on the carrying amount of the convertible notes as if it had always been treated as a liability only. Furthermore, we recorded an adjustment to the debt issuance costs contra liability and equity (additional paid-in-capital) components under the same premise, i.e. as if debt issuance costs had always been treated as a contra liability only. Lastly, we derecognized deferred income taxes associated with the convertible notes debt discount and adjusted deferred incomes taxes relative to unamortized debt issuance costs associated with our convertible notes due November 2024. Interest expense related to the accretion of our convertible notes due November 2024 is no longer recognized. Interest accretion of convertible notes discount and net income from continuing operations attributable to Chart Industries, Inc. for the three months ended March 31, 2021 would have been $2.0 and $24.0, respectively, without the adoption of ASU 2020-06. As such, net income from continuing operations attributable to Chart Industries, Inc. per common share (both basic and diluted) for the three months ended March 31, 2021 is $0.04 higher due to the effect of adoption of ASU 2020-06. As further described in Note 9, “Debt and Credit Arrangements,” on December 31, 2020, we amended the Indenture governing our convertible notes due November 2024 to eliminate share settlement thus leaving us with two settlement options: (1) cash settlement or (2) cash for par and any combination of cash and shares for the excess settlement amount above the $258.8 principal amount of our convertible notes due November 2024. ASU 2020-06 requires usage of the if-converted method to compute diluted earnings per share for our convertible notes due November 2024, however, based on the terms of the amended Indenture and the cessation of interest accretion expense recognition from the transition at adoption, the if-converted method was modified such that interest expense is no longer added to the numerator, and the denominator only includes incremental shares that would be issued upon conversion. Impacts on Financial Statements The following table summarizes the cumulative effect of the changes to our condensed consolidated balance sheet as of December 31, 2020 from the adoption of ASU 2020-06:
_______________ (1)Current convertible notes is presented net of unamortized discount and debt issuance costs of $34.8 and $3.1, respectively at December 31, 2020. Current convertible notes is presented net of unamortized debt issuance costs of $3.9 at January 1, 2021. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” This ASU clarifies the interactions between the measurement alternative in Topic 321, the equity method of accounting in Topic 323 and the application of guidance for certain forward contracts and purchased options that upon settlement or exercise would be accounted for under the equity method of accounting in Topic 815. This guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance effective January 1, 2021. The adoption of this guidance did not have a material impact on our financial position, results of operations or disclosures.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations As discussed in our Annual Report on Form 10-K for the year ended December 31, 2020, on October 1, 2020, we closed on the sale of our cryobiological products business to Cryoport, Inc. (NASDAQ: CYRX) (the “Cryobiological Divestiture”). Our cryobiological products business asset group met the criteria to be held for sale. Furthermore, we determined that the assets held for sale qualified for discontinued operations. As such, the financial results of the cryobiological products business are reflected in our unaudited condensed consolidated statements of income and comprehensive income as discontinued operations for all prior periods presented. Summarized Financial Information of Discontinued Operations The following table represents income from discontinued operations, net of tax:
________________ (1)Includes depreciation expense of $0.3 for the three months ended March 31, 2020. The following table represents a summary of cash flows related to discontinued operations:
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Reportable Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reportable Segments | Reportable Segments As reported in our Annual Report on Form 10-K for the year ended December 31, 2020, the structure of our internal organization is divided into the following four reportable segments, which are also our operating segments: Cryo Tank Solutions, Heat Transfer Systems, Specialty Products and Repair, Service & Leasing. Our Cryo Tank Solutions segment, which has principal operations in the United States, Europe and Asia, supplies bulk, microbulk and mobile equipment used in the storage, distribution, vaporization, and application of industrial gases. Our Heat Transfer Systems segment, which has principal operations in the United States, Europe and India, supplies mission critical engineered equipment and systems used in the separation, liquefaction, and purification of hydrocarbon and industrial gases that span gas-to-liquid applications. Our Specialty Products segment with locations globally supplies products used in our specialty market applications including hydrogen, HLNG vehicle tanks, food and beverage, space exploration, lasers, cannabis and water treatment, amongst others. Our Repair, Service & Leasing segment, which includes repair and service centers globally, provides installation, service, repair, maintenance, and refurbishment of cryogenic products as well as global equipment leasing solutions. Corporate includes operating expenses for executive management, accounting, tax, treasury, corporate development, human resources, information technology, investor relations, legal, internal audit and risk management. Corporate support functions are not currently allocated to the segments. All prior period amounts presented in the tables below have been reclassified based on our current reportable segments. We evaluate performance and allocate resources based on operating income as determined in our condensed consolidated statements of income and comprehensive income. Segment Financial Information
_______________ (1)Restructuring costs for the: •three months ended March 31, 2021 were $0.7 ($0.3 - Cryo Tank Solutions, $0.4 - Heat Transfer Systems). •three months ended March 31, 2020 were $5.2 ($1.8 - Cryo Tank Solutions, $2.8 - Heat Transfer Systems, $0.6 - Corporate ). (2)Includes acquisition-related contingent consideration adjustments of $0.8 in our Specialty Products segment for the three months ended March 31, 2021. Sales by Geography
Total Assets Corporate assets mainly include cash and cash equivalents and long-term deferred income taxes as well as certain corporate-specific property, plant and equipment, net and certain investments. Our allocation methodology for property, plant and equipment, net of the reportable segments differs from our allocation method of depreciation expense of a reportable segment and therefore, depreciation expense does not entirely align with the related depreciable assets of the reportable segments. Furthermore, since finite-lived intangible assets are excluded from total assets of reportable segments while amortization expense is allocated to each of our reportable segments, amortization expense by segment inherently does not align with the related amortizable intangible assets of the reportable segments.
_______________ (1)See Note 8, “Goodwill and Intangible Assets,” for further information related to goodwill and identifiable intangible assets, net.
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Disaggregation of Revenue The following tables represent a disaggregation of revenue by timing of revenue along with the reportable segment for each category:
Refer to Note 3, “Reportable Segments,” for a table of revenue by reportable segment disaggregated by geography. Contract Balances The following table represents changes in our contract assets and contract liabilities balances:
Revenue recognized for the three months ended March 31, 2021 and 2020, that was included in the contract liabilities balance at the beginning of each year was $52.5 and $17.1, respectively. The amount of revenue recognized during the three months ended March 31, 2021 from performance obligations satisfied or partially satisfied in previous periods as a result of changes in the estimates of variable consideration related to long-term contracts, was not significant. Remaining Performance Obligations Remaining performance obligations represent the transaction price of firm signed purchase orders or other written contractual commitments from customers for which work has not been performed, or is partially completed, and excludes unexercised contract options and potential orders. As of March 31, 2021, the estimated revenue expected to be recognized in the future related to remaining performance obligations was $934.1. We expect to recognize revenue on approximately 76% of the remaining performance obligations over the next 12 months and with the remaining over the next few years thereafter.
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Investments |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Investments in equity securities We measure certain of our investments in equity securities at fair value on a recurring basis. Furthermore, we categorize these investments in equity securities according to the fair value hierarchy as defined in Note 2, “Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2020. Mark-to-market fair value adjustments in these investments in equity securities are classified as unrealized (gain) loss on investments in equity securities in our condensed consolidated statements of income and comprehensive income. For certain other investments in equity securities that are not measured at fair value on a recurring basis, we measure such investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The following table summarizes the components of our investments in equity securities:
_______________ (1)Represents our investment in McPhy (Euronext Paris: MCPHY - ISIN; FR001742329), which was 41.6 million euros ($48.8) and 39.8 million euros ($53.8) at March 31, 2021 and December 31, 2020, respectively. For the three months ended March 31, 2021, we recognized an unrealized loss of $2.6. For additional information see Note 6, “Investments” in our Annual Report on Form 10-K for the year ended December 31, 2020. (2)Represents our investment in Stabilis Energy, Inc. (“Stabilis”), which was $10.0 and $4.1 at March 31, 2021 and December 31, 2020, respectively. For the three months ended March 31, 2021, we recognized an unrealized gain of $5.9. For additional information see Note 6, “Investments” in our Annual Report on Form 10-K for the year ended December 31, 2020. (3)Represents our investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”), which was CAD 20.0 million at both March 31, 2021 and December 31, 2020 (equivalent to $15.8 and $15.7 at March 31, 2021 and December 31, 2020, respectively). For additional information see Note 6, “Investments” in our Annual Report on Form 10-K for the year ended December 31, 2020. (4)During the first quarter of 2021, we completed an investment in Svante Inc. (“Svante”) in the amount of $15.0 for under 10% of its capital stock on a fully diluted basis. This investment was measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of March 31, 2021, the value of the investment was $15.0. Svante offers companies in emissions-intensive industries a commercially viable way to capture large-scale CO2 emissions from existing infrastructure, either for safe storage or to be recycled for further industrial use in a closed loop. (5)During the first quarter of 2021, we completed an investment in Transform Materials LLC (“Transform Materials”) in the amount of $25.0 for approximately 5% of its equity. This investment was measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of March 31, 2021, the value of the investment was $25.0. Transform Materials is a sustainable chemical technology company that uses microwave plasma to convert natural gas into acetylene and hydrogen. Its highly selective, cost-effective, net-carbon-negative process converts the methane in natural gas into high-value products suitable for direct use or downstream reactions. Equity method accounting investments Our equity investments accounted for under the equity method of accounting include a 50% ownership interest in a joint venture with Hudson Products de Mexico S.A. de CV which totaled $2.8 at both March 31, 2021 and December 31, 2020. This investment is operated and managed by our joint venture partner and as such, we do not have control over the joint venture and therefore it is not consolidated. Additionally, we have a 25% ownership interest in Liberty LNG, which was valued at $2.2 and $2.1 at March 31, 2021 and December 31, 2020, respectively. Our equity in earnings from these equity method accounting investments were not material for the periods presented.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases As of March 31, 2021 and December 31, 2020, operating right-of-use (“ROU”) assets and lease liabilities were $28.0 and $27.7 ($5.1 of which was current) and $29.0 and $28.7 ($5.1 of which was current), respectively. The weighted-average remaining term for lease contracts was 5.6 years at March 31, 2021, with maturity dates ranging from April 2021 to February 2029. The weighted-average discount rate was 2.3% at March 31, 2021. ROU assets are classified as property, plant and equipment, net in the condensed consolidated balance sheets. We incurred $3.0 and $2.9 of rental expense under operating leases for the three months ended March 31, 2021 and 2020, respectively. Certain operating leases contain rent escalation clauses and lease concessions that require additional rental payments in the later years of the term. Rent expense for these types of leases is recognized on a straight-line basis over the minimum lease term. Adjustments for straight-line rental expense for the respective periods was not material and as such, the majority of expense recognized was reflected in cash provided by operating activities for the respective periods. This expense consisted primarily of payments for base rent on building and equipment leases. Payments related to short-term lease costs and taxes and variable service charges on leased properties were immaterial. In addition, we have the right, but no obligation, to renew certain leases for various renewal terms. The following table summarizes future minimum lease payments for non-cancelable operating leases as of March 31, 2021:
_______________ (1) As of March 31, 2021, future minimum lease payments for non-cancelable operating leases for period subsequent to 2024 relate to seven leased facilities.
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Inventories |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories The following table summarizes the components of inventory:
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Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table represents the changes in goodwill by segment:
_______________ (1)During the first quarter of 2021, we recorded a purchase price adjustment that increased goodwill by $0.7 in Specialty Products related to the Cryogenic Gas Technologies, Inc. acquisition. For further information regarding goodwill acquired and the purchase price adjustment during the period refer to Note 11, “Business Combinations.” Amounts included in accumulated goodwill impairment loss at both March 31, 2021 and December 31, 2020 were $129.0 ($23.5 - Cryo Tank Solutions, $49.3 - Heat Transfer Systems, $35.8 - Specialty Products, $20.4 - Repair, Service & Leasing). Intangible Assets The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1):
_______________ (1)Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off. Amortization expense for intangible assets subject to amortization was $8.8 and $14.0 for the three months ended March 31, 2021 and 2020, respectively. We estimate amortization expense to be recognized during the next five years as follows:
Government Grants We received certain government grants related to land use rights for capacity expansion in China (“China Government Grants”). China Government Grants are generally recorded in other current liabilities and other long-term liabilities in the unaudited condensed consolidated balance sheets and generally recognized into income over the useful life of the associated assets (10 to 50 years). China Government Grants are presented in our unaudited condensed consolidated balance sheets as follows:
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Debt and Credit Arrangements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Credit Arrangements | Debt and Credit Arrangements Summary of Outstanding Borrowings The following table represents the components of our borrowings:
_______________ (1)As of March 31, 2021, there were $103.1 in borrowings outstanding under the term loan due June 2024, which is due at maturity, bearing an interest rate of 2.0% (2.5% as of December 31, 2020). (2)The senior secured revolving credit facility due 2024 includes $100.0 sub limit for letters of credit, a $250.0 sub limit for discretionary letters of credit and $50.0 sub limit for swingline loans. As of March 31, 2021, there were $204.7 in borrowings outstanding under the senior secured revolving credit facility due 2024 bearing a weighted-average interest rate of 1.8% (2.1% as of December 31, 2020) and $53.1 in letters of credit and bank guarantees outstanding supported by the senior secured revolving credit facility due 2024. As of March 31, 2021, the senior secured revolving credit facility due 2024 had availability of $292.2. (3)A portion of borrowings outstanding under our senior secured revolving credit facility due 2024 are denominated in euros (“EUR Revolver Borrowings”). As of both March 31, 2021 and December 31, 2020, EUR Revolver Borrowings outstanding were EUR 71.5 million (equivalent to $83.8 and $87.7 at March 31, 2021 and December 31, 2020, respectively). During the three months ended March 31, 2021, we recognized an unrealized foreign currency gain of $3.9 relative to the translation of the EUR Revolver Borrowings outstanding during the reporting period. This unrealized foreign currency gain is classified as foreign currency (gain) loss and other in the condensed consolidated statement of income for the three months ended March 31, 2021. (4)We derecognized the debt discount associated with the convertible notes due November 2024 upon adoption of ASU 2020-06 on January 1, 2021. Senior Secured Revolving Credit Facility and Term Loan On June 14, 2019, we entered into the Fourth Amended and Restated Credit Agreement, which includes a senior secured revolving credit facility (the “SSRCF”) and a term loan (together, the “2024 Credit Facilities”). The 2024 Credit Facilities mature on June 14, 2024. •The SSRCF has a borrowing capacity of $550.0. •The principal amount of the term loan is $450.0. •The 2024 Credit Facilities bear interest at a base rate margin determined on a leveraged-based scale which ranges from 25 to 150 basis points for alternative base rate loans and 125 to 250 basis points for LIBOR loans. •Interest and fees are payable on a quarterly basis (or if earlier, at the end of each interest period for LIBOR loans). Significant financial covenants for the 2024 Credit Facilities include financial maintenance covenants that, as of the last day of any fiscal quarter ending on and after June 30, 2019, (i) require the ratio of the amount of Chart and its subsidiaries’ consolidated total net indebtedness to consolidated EBITDA to be less than specified maximum ratio levels and (ii) require the ratio of the amount of Chart and its subsidiaries’ consolidated EBITDA to consolidated cash interest expense to be greater than a specified minimum ratio level. The 2024 Credit Facilities include a number of other customary covenants including, but not limited to, restrictions on our ability to incur additional indebtedness, create liens or other encumbrances, sell assets, enter into sale and lease-back transactions, make certain payments, investments, loans, advances or guarantees, make acquisitions and engage in mergers or consolidations and pay dividends or distributions. At March 31, 2021, we were in compliance with all covenants. The 2024 Credit Facilities also contain customary events of default. If such an event of default occurs, the lenders thereunder would be entitled to take various actions, including the acceleration of amounts due and all actions permitted to be taken by a secured creditor. The 2024 Credit Facilities are guaranteed by Chart and substantially all of its U.S. subsidiaries and secured by substantially all of the assets of Chart and our U.S. subsidiaries and 65% of the capital stock of our material non-U.S. subsidiaries (as defined by the Fourth Amended and Restated Credit Agreement) that are owned by U.S. subsidiaries. On September 28, 2020 and April 20, 2020, we amended our 2024 Credit Facilities. The amendments, among other things, (i) reduce the LIBO Screen Rate (as defined in the Credit Agreement) floor by half, effectively reducing all interest payable by Chart (ii) provide Chart with further flexibility to complete divestitures at its discretion by changing the “catch-all” permitted divestiture basket from a small annual cap to a more substantial life-of the-facility cap, (iii) adjust the pricing grid in order to accommodate potentially higher leverage ratios, (iv) adjust factoring related definitions and other related provisions to provide Chart with greater flexibility to enter into such arrangements in the future, (v) incorporate a “cash hoarding” prevention covenant and (vi) incorporate various amendments to reflect interest rate floor and other changes to the Loan Syndications and Trading Association and Loan Market Association market standards for credit agreements. The terms and conditions under the 2024 Credit Facilities are otherwise substantially the same as those prior to the amendments. We recorded $1.9 in deferred debt issuance costs related to these amendments which are being amortized over the remaining term of the 2024 Credit Facilities. We recorded $6.1 in deferred debt issuance costs in conjunction with the 2024 Credit Facilities, which is included in long-term debt in the unaudited condensed consolidated balance sheet at March 31, 2021, associated with the term loan, which is being amortized over its five-year term beginning in July 2019. We paid $11.9 in deferred debt issuance costs related to the SSRCF. Deferred debt issuance costs are presented in other assets in the unaudited condensed consolidated balance sheets and are being amortized over the term of the SSRCF. At March 31, 2021, unamortized debt issuance costs associated with the SSRCF were $7.3. The following table summarizes interest expense and financing costs amortization related to the 2024 Credit Facilities:
2024 Convertible Notes On November 6, 2017, we issued 1.00% Convertible Senior Subordinated Notes due November 2024 (the “2024 Notes”) in the aggregate principal amount of $258.8, pursuant to an Indenture, dated as of such date (the “Indenture”). On December 31, 2020, we entered into the First Supplemental Indenture (the “Supplemental Indenture”) to the Indenture, between Chart and Wells Fargo Bank, National Association, as trustee, governing the 2024 Notes. Pursuant to the Supplemental Indenture, Chart irrevocably elected (i) to eliminate Chart’s option to elect Physical Settlement (as defined in the Indenture) on any conversion of 2024 Notes that occurs on or after the date of the Supplemental Indenture and (ii) that, with respect to any Combination Settlement (as defined in the Indenture) for a conversion of 2024 Notes, the Specified Dollar Amount (as defined in the Indenture) that will be settled in cash per $1,000 principal amount of the Notes shall be no lower than $1,000. The 2024 Notes bear interest at an annual rate of 1.00%, payable on May 15 and November 15 of each year, beginning on May 15, 2018, and will mature on November 15, 2024 unless earlier converted or repurchased. The 2024 Notes are senior subordinated unsecured obligations of the Company and are not guaranteed by any of our subsidiaries. The 2024 Notes are senior in right of payment to our future subordinated debt, equal in right of payment with the Company’s future senior subordinated debt and are subordinated in right of payment to our existing and future senior indebtedness, including indebtedness under our existing credit agreement. Prior to December 31, 2020, a conversion of the 2024 Notes could have been settled in cash, shares of our common stock or a combination of cash and shares of our common stock, at our election (subject to, and in accordance with, the settlement provisions of the Indenture). After December 31, 2020, a conversion of the 2024 Notes may be settled in either (1) cash or (2) cash for the principal amount of the 2024 Notes and any combination of cash and shares for the excess settlement amount above the principal amount of the 2024 Notes, at our election (subject to, and in accordance with, the settlement provisions of the Indenture and Supplemental Indenture). The initial conversion rate for the 2024 Notes is 17.0285 shares of common stock (subject to adjustment as provided for in the Indenture) per $1,000 principal amount of the 2024 Notes, which is equal to an initial conversion price of approximately $58.725 per share, representing a conversion premium of approximately 35% above the closing price of our common stock of $43.50 per share on October 31, 2017. In addition, following certain corporate events that occur prior to the maturity date as described in the Indenture, we will pay a make-whole premium by increasing the conversion rate for a holder who elects to convert its 2024 Notes in connection with such a corporate event in certain circumstances. For purposes of calculating earnings per share, if the average market price of our common stock exceeds the applicable conversion price during the periods reported, shares contingently issuable under the 2024 Notes will have a dilutive effect with respect to our common stock. Since our closing common stock price of $142.35 at the end of the period exceeded the conversion price of $58.725, the if-converted value exceeded the principal amount of the 2024 Notes by approximately $368.5 at March 31, 2021. As described below, we entered into convertible note hedge transactions, which are expected to reduce the potential dilution with respect to our common stock upon conversion of the 2024 Notes. Holders of the 2024 Notes may convert their 2024 Notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2024 only under the following circumstances: (1) during any fiscal quarter commencing after December 31, 2017 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the applicable conversion price for the 2024 Notes on each applicable trading day; (2) during the business day period after any 10 consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per one thousand U.S. dollar principal amount of Notes for each trading day of such measurement period was less than 97% of the product of the last reported sale price of our common stock and the applicable conversion rate for the 2024 Notes on each such trading day; or (3) upon the occurrence of specified corporate events described in the Indenture. On or after August 15, 2024 until the close of business on the second scheduled trading day immediately preceding November 15, 2024, holders may convert their 2024 Notes at the option of the holder regardless of the foregoing circumstances. As of April 1, 2021, the 2024 Notes continue to be convertible at the option of the shareholders. This conversion right, which will remain available until June 30, 2021, was triggered since the closing price of our common stock was greater than or equal to $76.3425 (130% of the conversion price of the 2024 Notes) for at least 20 trading days during the last 30 trading days ending on March 31, 2021. Since the holders of the 2024 Notes could potentially convert their 2024 Notes at their option during the three month period subsequent to March 31, 2021, the $258.8 principal amount of the 2024 Notes was classified as a current liability in the consolidated balance sheet at March 31, 2021. As of December 31, 2020, the 2024 Notes were convertible at the option of the holders, and the liability component of the 2024 Notes was classified as a current liability. We will reassess the convertibility of the 2024 Notes and the related balance sheet classification on a quarterly basis. There have been no conversions as of the date of this filing. Prior to the adoption of ASU 2020-06, we allocated the gross proceeds of the 2024 Notes between the liability and equity components of the 2024 Notes. The initial liability component of $200.1, which was recorded as long-term debt, represented the fair value of similar debt instruments that have no conversion rights. The initial equity component of $58.7, which was recorded as additional paid-in capital, represented the debt discount and was calculated as the difference between the fair value of the liability component and gross proceeds of the 2024 Notes. The liability component was recognized at the present value of its associated cash flows using a 4.8% straight-debt rate and was being accreted to interest expense over the term of the 2024 Notes. After the adoption of ASU 2020-06, our convertible notes due November 2024 are no longer bifurcated into separate liability and equity components in our March 31, 2021 condensed consolidated balance sheet. Rather, the $258.8 principal amount of our convertible notes due November 2024 was classified as a liability only in our March 31, 2021 condensed consolidated balance sheet. Upon adoption of ASU 2020-06 and transition, we recorded an adjustment to the convertible notes liability component, equity component (additional paid-in-capital) and retained earnings. This adjustment was calculated based on the carrying amount of the convertible notes as if it had always been treated as a liability only. Refer to Note 1, “Basis of Preparation” for further discussion. Prior to the adoption of ASU 2020-06, we recorded $5.3 in deferred debt issuance costs associated with the 2024 Notes, which was being amortized over the term of the 2024 Notes using the effective interest method. We also recorded $1.5 in equity issuance costs, which was recorded as a reduction to additional paid-in capital. After the adoption of ASU 2020-06, we recorded an adjustment to the debt issuance costs contra liability and equity (additional paid-in-capital) components under the same premise, i.e. as if debt issuance costs had always been treated as a contra liability only. We amortize the adjusted unamortized debt issuance costs balance over the term of the 2024 Notes using the effective interest method. Refer to Note 1, “Basis of Preparation” for further discussion. Furthermore, interest expense related to the accretion of our convertible notes due November 2024 is no longer recognized. The following table summarizes interest accretion of the 2024 Notes discount, 1.0% contractual interest coupon and financing costs amortization associated with the 2024 Notes:
Convertible Note Hedge and Warrant Transactions Associated with the 2024 Notes In connection with the pricing of the 2024 Notes, we entered into convertible note hedge transactions (the “Note Hedge Transactions”) with certain parties, including the initial purchasers of the 2024 Notes (the “Option Counterparties”). The Note Hedge Transactions are expected generally to reduce the potential dilution upon any future conversion of the 2024 Notes. Payments for the Note Hedge Transactions totaled approximately $59.5 and were recorded as a reduction to additional paid-in capital in the December 31, 2017 consolidated balance sheet. We also entered into separate, privately negotiated warrant transactions (the “Warrant Transactions”) with the Option Counterparties to acquire up to 4.41 shares of our common stock. Proceeds received from the issuance of the Warrant Transactions totaled approximately $46.0 and were recorded as an addition to additional paid-in capital in the December 31, 2017 consolidated balance sheet. The strike price of the Warrant Transactions will initially be $71.775 per share (subject to adjustment), which is approximately 65% above the last reported sale price of our common stock on October 31, 2017. The Warrant Transactions could have a dilutive effect to our stockholders to the extent that the market price per share of our common stock, as measured under the terms of the Warrant Transactions, exceeds the applicable strike price of the warrants. The Note Hedge Transactions and Warrant Transactions effectively increased the conversion price of the 2024 Notes. The net cost of the Note Hedge Transactions and Warrant Transactions was approximately $13.5. Foreign Facilities In various markets where we do business, we have local credit facilities to meet local working capital demands, fund letters of credit and bank guarantees, and support other short-term cash requirements. The facilities generally have variable interest rates and are denominated in local currency but may, in some cases, facilitate borrowings in multiple currencies. We are permitted to borrow up to USD equivalent $80.9 under certain of our foreign facilities. As of March 31, 2021 and December 31, 2020 there were none outstanding in USD equivalent in borrowings outstanding under these facilities. The weighted-average interest rate on foreign facilities was of 1.3% as of March 31, 2021. Certain of our foreign facilities allow us to request bank guarantees and letters of credit. None of these facilities allow revolving credit borrowings. We have foreign letters of credit and bank guarantees that totaled USD equivalent $51.6 and $47.7 as of March 31, 2021 and December 31, 2020, respectively. Letters of Credit Chart Energy & Chemicals, Inc., a wholly-owned subsidiary of the Company, had $1.0 in deposits in a bank outside of the SSRCF to secure letters of credit. The deposits are treated as restricted cash and restricted cash equivalents in the unaudited condensed consolidated balance sheets $1.0 in other assets at both March 31, 2021 and December 31, 2020. Fair Value Disclosures The fair value of the 2024 Notes was approximately 242% and 210% of their par value as of March 31, 2021 and December 31, 2020, respectively. The 2024 Notes are actively quoted instruments and, accordingly, the fair value of the 2024 Notes was determined using Level 1 inputs.
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Product Warranties |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||
Product Warranties | Product Warranties We provide product warranties with varying terms and durations for the majority of our products. We estimate our warranty reserve by considering historical and projected warranty claims, historical and projected cost-per-claim, and knowledge of specific product issues that are outside our typical experience. We record warranty expense in cost of sales in the unaudited condensed consolidated statements of income and comprehensive income. Product warranty claims not expected to occur within one year are included as part of other long-term liabilities in the unaudited condensed consolidated balance sheets. The following table represents changes in our consolidated warranty reserve:
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Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations Cryo Technologies Acquisition On February 16, 2021, we acquired 100% of the equity interests of Cryogenic Gas Technologies, Inc. (“Cryo Technologies”) for approximately $55.0 in cash (subject to certain customary adjustments), net of $0.6 cash acquired. Cryo Technologies is a global leader in custom engineered process systems to separate, purify, refrigerate, liquefy and distribute high value industrial gases such as hydrogen, helium, argon and hydrocarbons with design capabilities for cold boxes for hydrogen and helium use. The distribution systems Cryo Technologies supplies are located within the helium and hydrogen liquefaction facilities and are inclusive of trailer loading systems, which facilitates the first step in product distribution. The preliminary estimated fair value of the net assets acquired and goodwill at the date of acquisition was $2.9 and $52.1, respectively. Net assets includes $1.8 in intangible assets, which consists of unpatented technology and customer relationships. The acquisition consideration allocation is preliminary and shall be further revised as we finalize third-party valuations and other analyses to include identifiable intangible assets during the remainder of the measurement period, which shall not exceed twelve months from the closing of the acquisition. Sustainable Energy Solutions, Inc. Acquisition On December 23, 2020, we completed the acquisition of Sustainable Energy Solutions, Inc. (“SES”). SES’s Cryogenic Carbon Capture™ (CCC) technology eliminates most emissions from fossil fuels while enabling better use of intermittent renewables through grid-scale energy storage. The stock purchase was completed for a closing purchase price of $20.0 in cash at closing, subject to a post-closing working capital adjustment, plus a potential earn-out not to exceed $25.0. The preliminary estimated fair value of the net assets acquired and goodwill at the date of acquisition was $13.4 and $24.0, respectively. Net assets includes $17.3 in intangible assets, which consists of unpatented technology, trade names and non-compete contracts. BlueInGreen, LLC Acquisition On November 3, 2020, we completed the acquisition of BlueInGreen, LLC (“BIG”), a leading dissolved-gas expert providing custom-engineered solutions for water treatment and industrial process applications that delivers tangible economic, social and environmental value. The stock purchase was completed for a purchase price of $20.0 in cash at closing (subject to customary adjustments), plus a potential earn-out not to exceed $6.0. The preliminary estimated fair value of the net assets acquired and goodwill at the date of acquisition was $8.8 and $14.8, respectively. The purchase price allocation reported at December 31, 2020 was preliminary and was based on provisional fair values. During the first three months of 2021, we received and analyzed new information about certain intangible assets and subsequently decreased their estimated fair value by $0.7. Net assets includes $6.2 in intangible assets, which consists of non-compete contracts, unpatented technology, trademarks and trade names, certifications and licenses and customer relationships. Alabama Trailers Acquisition On October 13, 2020, we completed the acquisition of the Theodore, Alabama cryogenic trailer and hydrogen trailer (transport) assets of Worthington Industries, Inc. (NYSE: WOR) for $10.0 in cash (“Alabama Trailers”). Worthington Industries, Inc. made the decision to exit the hydrogen trailer business and sold the business to Chart at a discount. As a result of the acquisition, we recorded a bargain purchase gain of $5.0. Alabama Trailers designs, manufactures and sells cryogenic trailers and hydrogen trailers used in industrial gas and energy applications. The purchase price allocations of Cryo Technologies, SES, BIG and Alabama Trailers are preliminary and are based on provisional fair values and subject to revision as we finalize third-party valuations and other analyses. Final determination of the fair values may result in further adjustments to the value of net assets acquired. Contingent Consideration The fair value of contingent consideration was $16.9 for SES and $3.2 for BIG at the date of acquisitions and was valued according to a discounted cash flow approach, which included assumptions regarding the probability of achieving certain targets and a discount rate applied to the potential payments. Potential payments are measured between the period commencing April 1, 2021 and ending on December 31, 2028 based on the attainment of certain earnings targets. The potential payments related to both SES and BIG contingent consideration on a combined basis is between $0.0 and $31.0. Valuations are performed using Level 3 inputs as defined in Note 2, “Significant Accounting Policies” of our Annual Report on Form 10-K for the year ended December 31, 2020 and are evaluated on a quarterly basis based on forecasted sales and earnings targets. Contingent consideration liabilities are classified as other current liabilities and other long-term liabilities in the condensed consolidated balance sheets. Changes in fair value of contingent consideration, including accretion, are recorded as selling, general and administrative expenses in the condensed consolidated statements of income and comprehensive income. The following table represents the changes to our contingent consideration liabilities:
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Accumulated Other Comprehensive (Loss) Income |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The components of accumulated other comprehensive (loss) income are as follows:
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The following table represents calculations of net earnings per share of common stock:
Diluted earnings per share does not reflect the following potential common shares as the effect would be anti-dilutive:
_______________ (1)The convertible note hedge offsets any dilution upon actual conversion of the 2024 Notes up to a common stock price of $71.775 per share. For further information, refer to Note 9, “Debt and Credit Arrangements.”
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Income Taxes |
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Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense of $3.1 and $0.4 for the three months ended March 31, 2021 and 2020, respectively, represents taxes on both U.S. and foreign earnings at a combined effective income tax rate of 10.6% and 16.0%, respectively. The effective income tax rate of 10.6% for the three months ended March 31, 2021 differed from the U.S. federal statutory rate of 21% primarily due to losses incurred by some of our foreign operations for which no benefit was recorded, partially offset by the effect of income earned by our certain foreign entities being taxed at higher rates than the U.S. federal statutory rate and excess tax benefits associated with share-based compensation. The effective income tax rate of 16.0% for the three months ended March 31, 2020 differed from the U.S. federal statutory rate of 21% primarily due to losses incurred by certain of our foreign operations for which no benefit was recorded, partially offset by the effect of income earned by certain of our foreign entities being taxed at higher rates than the U.S. federal statutory rate and excess tax benefits associated with share-based compensation.As of both March 31, 2021 and December 31, 2020, we had a liability for gross unrecognized tax benefits of $1.9. This amount includes $1.3 of unrecognized tax benefits as of both March 31, 2021 and December 31, 2020, which, if ultimately recognized, would reduce our annual effective income tax rate. We recognized interest and penalties of $0.3 related to uncertain tax positions in income tax expense as of March 31, 2021.
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Share-based Compensation |
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Mar. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Compensation | Share-based Compensation During the three months ended March 31, 2021, we granted 0.06 stock options, 0.05 restricted stock units and 0.03 performance units. The total fair value of awards granted to employees during the three months ended March 31, 2021 was $12.5. In addition, our non-employee directors received stock awards with a total fair value of $0.1. During the three months ended March 31, 2021, participants in our stock option plans exercised options to purchase 0.10 shares of our common stock. Stock options generally have a four-year graded vesting period. Restricted stock and restricted stock units generally vest ratably over a three-year period. Performance units generally vest at the end of a three-year performance period based on the attainment of certain pre-determined performance condition targets. During the three months ended March 31, 2021, 0.07 restricted stock and restricted stock units vested and 0.01 performance units vested. Share-based compensation expense was $3.4 and $2.9 for the three months ended March 31, 2021 and 2020, respectively. Share-based compensation expense is included in selling, general, and administrative expenses in the unaudited condensed consolidated statements of income and comprehensive income. As of March 31, 2021, total share-based compensation of $18.0 is expected to be recognized over the weighted-average period of approximately 2.4 years.
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Commitment and Contingencies |
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Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental We are subject to federal, state, local, and foreign environmental laws and regulations concerning, among other matters, waste water effluents, air emissions, and handling and disposal of hazardous materials, such as cleaning fluids. We are involved with environmental compliance, investigation, monitoring, and remediation activities at certain of our owned and formerly owned manufacturing facilities and at one owned facility that is leased to a third party, and, except for these continuing remediation efforts, believe we are currently in substantial compliance with all known environmental regulations. At both March 31, 2021 and December 31, 2020, we had undiscounted accrued environmental reserves of $0.3. Legal Proceedings Stainless Steel Cryobiological Tank Legal Proceedings During the second quarter of 2018, Chart was named in lawsuits (including lawsuits filed in the U.S. District Court for the Northern District of California) filed against Chart and other defendants with respect to the alleged failure of a stainless steel cryobiological storage tank (model MVE 808AF-GB) at the Pacific Fertility Center in San Francisco, California. We continue to evaluate the merits of such claims in light of the information available to date regarding use, maintenance and operation of the tank that was sold to the Pacific Fertility Center through an independent distributor and which has been out of our control for six years prior to the alleged failure. Accordingly, an accrual related to any damages that may result from the lawsuits has not been recorded because a potential loss is not currently probable or estimable. In connection with the Cryobiological Divestiture, Chart retained certain potential liabilities and claims, including the claims asserted in connection with this litigation. We have asserted various defenses against the claims in the lawsuits, including a defense that since manufacture, we were not in any way involved with the installation, ongoing maintenance or monitoring of the tank or related fertility center cryogenic systems at any time since the initial delivery of the tank. We are occasionally subject to various legal claims related to performance under contracts, product liability, taxes, employment matters, environmental matters, intellectual property, and other matters incidental to the normal course of our business. Based on our historical experience in litigating these claims, as well as our current assessment of the underlying merits of the claims and applicable insurance, if any, management believes that the final resolution of these matters will not have a material adverse effect on our financial position, liquidity, cash flows, or results of operations. Future developments may, however, result in resolution of these legal claims in a way that could have a material adverse effect.
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Restructuring Activities |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Activities | Restructuring Activities Restructuring costs of $0.7 for the first three months of 2021 were primarily related to headcount reductions and facility relocation and moving expenses. As previously reported, on July 17, 2020, we announced internally our intention to transfer operations of our heat exchanger leased facility in Tulsa, Oklahoma to our Beasley, Texas location at which we own 260 acres of land. This closure is a cost reduction measure within our Heat Transfer Systems segment to continue to structure the business for profitable growth and capacity efficiency. Total costs related to this closure are expected to be approximately $9.0, of which $2.7 was spent in 2020 and $0.4 has been spent year to date, associated with severance, relocation and moving expenses. We expect this project to be completed by June 30, 2021. We are closely monitoring our end markets and order rates and will continue to take appropriate and timely actions as necessary. Restructuring costs of $5.2 for the three months ended March 31, 2020 were related to certain cost reduction actions across all segments and corporate to appropriately size our workforce with demand as well as eliminate redundant work. Costs were primarily related to headcount reductions. The following table summarizes severance and other restructuring costs, which includes employee-related costs, facility rent and exit costs, relocation, recruiting, travel and other:
The following tables summarize our restructuring activities:
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Basis of Preparation (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation: The unaudited condensed consolidated financial statements include the accounts of Chart Industries, Inc. and its subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. Reclassifications: As discussed in our Annual Report on Form 10-K for the year ended December 31, 2020, on October 1, 2020, we closed on the sale of our cryobiological products business to Cryoport, Inc. (CYRX) (refer to Note 2, “Discontinued Operations” for further information). Furthermore, we reorganized our reporting structure such that the composition of our reportable segments changed effective October 1, 2020 (refer to Note 3, “Reportable Segments” for further information). As such, certain reclassifications have been made to the statement of income and comprehensive income for the three months ended March 31, 2020 and certain notes to the unaudited condensed consolidated financial statements in order to conform to the 2021 presentation.
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Use of Estimates | Use of Estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements. These estimates may also affect the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recently Issued and Adopted Accounting Standards | Recently Issued Accounting Standards (Not Yet Adopted): In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, “Reference Rate Reform (Topic 848), Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” and in January 2021, the FASB subsequently issued ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” ASU 2020-04 and the subsequent modifications are identified as Accounting Standards Codification (“ASC”) 848 (“ASC 848”). ASC 848 simplifies the accounting for modifying contracts (including those in hedging relationships) that refer to LIBOR and other interbank offered rates that are expected to be discontinued due to reference rate reform. The amendments in ASC 848 are effective for all entities as of March 12, 2020 through December 31, 2022. An entity may elect to apply the amendments for contract modifications by Topic or Industry Subtopic as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in ASC 848 must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. We expect application of the amendments to impact accounting for our senior secured revolving credit facility due June 2024. We are currently assessing the effect ASC 848 will have on our financial position, results of operations, and disclosures. Recently Adopted Accounting Standards: In August 2020, the FASB issued ASU 2020-06, “Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entities Own Equity (Subtopic 815-40).” This ASU simplifies accounting for convertible instruments by eliminating two of the three models in ASC 470-20 that require separating embedded conversion features from convertible instruments. The guidance is effective for fiscal years beginning after December 15, 2021. We adopted this guidance effective January 1, 2021 under the modified retrospective adoption approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings at the date of adoption. The comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. As a result of the adoption of ASU 2020-06, our convertible notes due November 2024 are no longer bifurcated into separate liability and equity components in our March 31, 2021 condensed consolidated balance sheet. Rather, the $258.8 principal amount of our convertible notes due November 2024 was classified as a liability only in our March 31, 2021 condensed consolidated balance sheet. Upon adoption of ASU 2020-06, we recorded an adjustment to the convertible notes liability component, equity component (additional paid-in-capital) and retained earnings. This adjustment was calculated based on the carrying amount of the convertible notes as if it had always been treated as a liability only. Furthermore, we recorded an adjustment to the debt issuance costs contra liability and equity (additional paid-in-capital) components under the same premise, i.e. as if debt issuance costs had always been treated as a contra liability only. Lastly, we derecognized deferred income taxes associated with the convertible notes debt discount and adjusted deferred incomes taxes relative to unamortized debt issuance costs associated with our convertible notes due November 2024. Interest expense related to the accretion of our convertible notes due November 2024 is no longer recognized. Interest accretion of convertible notes discount and net income from continuing operations attributable to Chart Industries, Inc. for the three months ended March 31, 2021 would have been $2.0 and $24.0, respectively, without the adoption of ASU 2020-06. As such, net income from continuing operations attributable to Chart Industries, Inc. per common share (both basic and diluted) for the three months ended March 31, 2021 is $0.04 higher due to the effect of adoption of ASU 2020-06. As further described in Note 9, “Debt and Credit Arrangements,” on December 31, 2020, we amended the Indenture governing our convertible notes due November 2024 to eliminate share settlement thus leaving us with two settlement options: (1) cash settlement or (2) cash for par and any combination of cash and shares for the excess settlement amount above the $258.8 principal amount of our convertible notes due November 2024. ASU 2020-06 requires usage of the if-converted method to compute diluted earnings per share for our convertible notes due November 2024, however, based on the terms of the amended Indenture and the cessation of interest accretion expense recognition from the transition at adoption, the if-converted method was modified such that interest expense is no longer added to the numerator, and the denominator only includes incremental shares that would be issued upon conversion. Impacts on Financial Statements The following table summarizes the cumulative effect of the changes to our condensed consolidated balance sheet as of December 31, 2020 from the adoption of ASU 2020-06:
_______________ (1)Current convertible notes is presented net of unamortized discount and debt issuance costs of $34.8 and $3.1, respectively at December 31, 2020. Current convertible notes is presented net of unamortized debt issuance costs of $3.9 at January 1, 2021. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815).” This ASU clarifies the interactions between the measurement alternative in Topic 321, the equity method of accounting in Topic 323 and the application of guidance for certain forward contracts and purchased options that upon settlement or exercise would be accounted for under the equity method of accounting in Topic 815. This guidance is effective for fiscal years ending after December 15, 2020. We adopted this guidance effective January 1, 2021. The adoption of this guidance did not have a material impact on our financial position, results of operations or disclosures.
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Basis of Preparation (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Impact on Financial Statements | The following table summarizes the cumulative effect of the changes to our condensed consolidated balance sheet as of December 31, 2020 from the adoption of ASU 2020-06:
_______________ (1)Current convertible notes is presented net of unamortized discount and debt issuance costs of $34.8 and $3.1, respectively at December 31, 2020. Current convertible notes is presented net of unamortized debt issuance costs of $3.9 at January 1, 2021.
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized financial information of discontinued operations | The following table represents income from discontinued operations, net of tax:
________________ (1)Includes depreciation expense of $0.3 for the three months ended March 31, 2020. The following table represents a summary of cash flows related to discontinued operations:
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Reportable Segments (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of reportable and product sales information segments | Segment Financial Information
_______________ (1)Restructuring costs for the: •three months ended March 31, 2021 were $0.7 ($0.3 - Cryo Tank Solutions, $0.4 - Heat Transfer Systems). •three months ended March 31, 2020 were $5.2 ($1.8 - Cryo Tank Solutions, $2.8 - Heat Transfer Systems, $0.6 - Corporate ). (2)Includes acquisition-related contingent consideration adjustments of $0.8 in our Specialty Products segment for the three months ended March 31, 2021. Sales by Geography
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Segment assets |
_______________ (1)See Note 8, “Goodwill and Intangible Assets,” for further information related to goodwill and identifiable intangible assets, net.
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of revenue by timing | The following tables represent a disaggregation of revenue by timing of revenue along with the reportable segment for each category:
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Changes in contract assets and contract liabilities balances | The following table represents changes in our contract assets and contract liabilities balances:
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Investments (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | The following table summarizes the components of our investments in equity securities:
_______________ (1)Represents our investment in McPhy (Euronext Paris: MCPHY - ISIN; FR001742329), which was 41.6 million euros ($48.8) and 39.8 million euros ($53.8) at March 31, 2021 and December 31, 2020, respectively. For the three months ended March 31, 2021, we recognized an unrealized loss of $2.6. For additional information see Note 6, “Investments” in our Annual Report on Form 10-K for the year ended December 31, 2020. (2)Represents our investment in Stabilis Energy, Inc. (“Stabilis”), which was $10.0 and $4.1 at March 31, 2021 and December 31, 2020, respectively. For the three months ended March 31, 2021, we recognized an unrealized gain of $5.9. For additional information see Note 6, “Investments” in our Annual Report on Form 10-K for the year ended December 31, 2020. (3)Represents our investment in HTEC Hydrogen Technology & Energy Corporation (“HTEC”), which was CAD 20.0 million at both March 31, 2021 and December 31, 2020 (equivalent to $15.8 and $15.7 at March 31, 2021 and December 31, 2020, respectively). For additional information see Note 6, “Investments” in our Annual Report on Form 10-K for the year ended December 31, 2020. (4)During the first quarter of 2021, we completed an investment in Svante Inc. (“Svante”) in the amount of $15.0 for under 10% of its capital stock on a fully diluted basis. This investment was measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of March 31, 2021, the value of the investment was $15.0. Svante offers companies in emissions-intensive industries a commercially viable way to capture large-scale CO2 emissions from existing infrastructure, either for safe storage or to be recycled for further industrial use in a closed loop. (5)During the first quarter of 2021, we completed an investment in Transform Materials LLC (“Transform Materials”) in the amount of $25.0 for approximately 5% of its equity. This investment was measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. As of March 31, 2021, the value of the investment was $25.0. Transform Materials is a sustainable chemical technology company that uses microwave plasma to convert natural gas into acetylene and hydrogen. Its highly selective, cost-effective, net-carbon-negative process converts the methane in natural gas into high-value products suitable for direct use or downstream reactions.
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Leases (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of operating lease future minimum payments | The following table summarizes future minimum lease payments for non-cancelable operating leases as of March 31, 2021:
_______________ (1) As of March 31, 2021, future minimum lease payments for non-cancelable operating leases for period subsequent to 2024 relate to seven leased facilities.
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Inventories (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized components of inventory | The following table summarizes the components of inventory:
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Goodwill and Intangible Assets (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill by segment | The following table represents the changes in goodwill by segment:
_______________ (1)During the first quarter of 2021, we recorded a purchase price adjustment that increased goodwill by $0.7 in Specialty Products related to the Cryogenic Gas Technologies, Inc. acquisition. For further information regarding goodwill acquired and the purchase price adjustment during the period refer to Note 11, “Business Combinations.”
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Schedule of finite-lived intangible assets | The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1):
_______________ (1)Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off.
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Schedule of indefinite-lived intangible assets | The following table displays the gross carrying amount and accumulated amortization for finite-lived intangible assets and indefinite-lived intangible assets (exclusive of goodwill) (1):
_______________ (1)Amounts include the impact of foreign currency translation. Fully amortized or impaired amounts are written off.
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Schedule of estimated future amortization | We estimate amortization expense to be recognized during the next five years as follows:
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Schedule of government grants | China Government Grants are presented in our unaudited condensed consolidated balance sheets as follows:
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Debt and Credit Arrangements (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of outstanding borrowings | The following table represents the components of our borrowings:
_______________ (1)As of March 31, 2021, there were $103.1 in borrowings outstanding under the term loan due June 2024, which is due at maturity, bearing an interest rate of 2.0% (2.5% as of December 31, 2020). (2)The senior secured revolving credit facility due 2024 includes $100.0 sub limit for letters of credit, a $250.0 sub limit for discretionary letters of credit and $50.0 sub limit for swingline loans. As of March 31, 2021, there were $204.7 in borrowings outstanding under the senior secured revolving credit facility due 2024 bearing a weighted-average interest rate of 1.8% (2.1% as of December 31, 2020) and $53.1 in letters of credit and bank guarantees outstanding supported by the senior secured revolving credit facility due 2024. As of March 31, 2021, the senior secured revolving credit facility due 2024 had availability of $292.2. (3)A portion of borrowings outstanding under our senior secured revolving credit facility due 2024 are denominated in euros (“EUR Revolver Borrowings”). As of both March 31, 2021 and December 31, 2020, EUR Revolver Borrowings outstanding were EUR 71.5 million (equivalent to $83.8 and $87.7 at March 31, 2021 and December 31, 2020, respectively). During the three months ended March 31, 2021, we recognized an unrealized foreign currency gain of $3.9 relative to the translation of the EUR Revolver Borrowings outstanding during the reporting period. This unrealized foreign currency gain is classified as foreign currency (gain) loss and other in the condensed consolidated statement of income for the three months ended March 31, 2021. (4)We derecognized the debt discount associated with the convertible notes due November 2024 upon adoption of ASU 2020-06 on January 1, 2021.
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Schedule of interest expense and financing cost amortization | The following table summarizes interest expense and financing costs amortization related to the 2024 Credit Facilities:
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Schedule of Interest Accretion | The following table summarizes interest accretion of the 2024 Notes discount, 1.0% contractual interest coupon and financing costs amortization associated with the 2024 Notes:
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Product Warranties (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||
Rollforward of consolidated warranty reserve | The following table represents changes in our consolidated warranty reserve:
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Business Combinations (Tables) |
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Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In Contingent Consideration | The following table represents the changes to our contingent consideration liabilities:
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Accumulated Other Comprehensive (Loss) Income (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in accumulated other comprehensive loss | The components of accumulated other comprehensive (loss) income are as follows:
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Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of net income per share | The following table represents calculations of net earnings per share of common stock:
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Schedule of antidilutive securities | Diluted earnings per share does not reflect the following potential common shares as the effect would be anti-dilutive:
_______________ (1)The convertible note hedge offsets any dilution upon actual conversion of the 2024 Notes up to a common stock price of $71.775 per share. For further information, refer to Note 9, “Debt and Credit Arrangements.”
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Restructuring Activities (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of severance and other restructuring costs | The following table summarizes severance and other restructuring costs, which includes employee-related costs, facility rent and exit costs, relocation, recruiting, travel and other:
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Schedule of rollforward of restructuring cost | The following tables summarize our restructuring activities:
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Basis of Preparation - Narratives (Details) $ / shares in Units, shares in Thousands |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021
USD ($)
location
$ / shares
|
Sep. 30, 2020
$ / shares
shares
|
Mar. 31, 2020
USD ($)
|
Jan. 01, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Mar. 11, 2020
USD ($)
|
Nov. 06, 2017
USD ($)
|
|||
Debt and Equity Securities, FV-NI | |||||||||
Number of locations (location) | location | 25 | ||||||||
Shares authorized for repurchase | $ 75,000,000 | ||||||||
Shares repurchased during the period (shares) | shares | 760 | ||||||||
Weighted average share price of shares repurchased (per share) | $ / shares | $ 25.40 | ||||||||
Common stock repurchases | [1] | $ 19,300,000 | |||||||
Interest expense, net | $ 2,000,000.0 | 7,200,000 | |||||||
Income from continuing operations | 25,600,000 | 2,100,000 | |||||||
Scenario, Plan | |||||||||
Debt and Equity Securities, FV-NI | |||||||||
Interest expense, net | 2,000,000.0 | ||||||||
Income from continuing operations | $ 24,000,000.0 | ||||||||
Income from continued operations basic and diluted (usd per share) | $ / shares | $ 0.04 | ||||||||
Treasury Stock | |||||||||
Debt and Equity Securities, FV-NI | |||||||||
Common stock repurchases | [1] | 19,300,000 | |||||||
Convertible Notes, due 2024 | Convertible Debt | |||||||||
Debt and Equity Securities, FV-NI | |||||||||
Principal amount | $ 258,800,000 | 258,800,000 | $ 258,800,000 | $ 258,800,000 | |||||
Interest expense, net | 600,000 | $ 600,000 | |||||||
Unamortized discount | 0 | 34,800,000 | |||||||
Unamortized debt issuance costs | $ 3,600,000 | $ 3,900,000 | $ 3,100,000 | ||||||
|
Basis of Preparation - Impact on Financial Statements (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Liabilities | ||
Accrued income taxes | $ 46.0 | $ 46.5 |
Current convertible notes | 255.2 | 220.9 |
Long-term deferred tax liabilities | 49.9 | 60.2 |
Equity | ||
Additional paid-in capital | 750.0 | 780.8 |
Retained earnings | $ 844.7 | 808.4 |
Cumulative Effect, Period of Adoption, Adjustment | ||
Liabilities | ||
Accrued income taxes | (0.2) | |
Current convertible notes | 34.0 | |
Long-term deferred tax liabilities | (7.6) | |
Equity | ||
Additional paid-in capital | (36.9) | |
Retained earnings | 10.7 | |
Cumulative Effect, Period of Adoption, Adjusted Balance | ||
Liabilities | ||
Accrued income taxes | 46.3 | |
Current convertible notes | 254.9 | |
Long-term deferred tax liabilities | 52.6 | |
Equity | ||
Additional paid-in capital | 743.9 | |
Retained earnings | $ 819.1 |
Discontinued Operations - Income from Discontinued Operations (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Summarized Financial Information of Discontinued Operations | ||
Income from discontinued operations, net of tax | $ 0.0 | $ 6.4 |
Disposed of by held for sale | ||
Summarized Financial Information of Discontinued Operations | ||
Depreciation expense, discontinued operations | 0.3 | |
Disposed of by held for sale | Cryobiological products business | ||
Summarized Financial Information of Discontinued Operations | ||
Sales | 19.2 | |
Cost of sales | 10.1 | |
Selling, general and administrative expenses | 1.4 | |
Operating income | 7.7 | |
Income before income taxes from discontinued operations | 7.7 | |
Income tax expense | $ 1.3 | |
Income from discontinued operations, net of tax | $ 6.4 |
Discontinued Operations - Cash Flows Related to Discontinued Operations (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Net cash provided by (used in): | |
Operating activities | $ 7.2 |
Investing activities | (0.1) |
Net cash provided by discontinued operations | $ 7.1 |
Reportable Segments - Narratives (Details) |
3 Months Ended |
---|---|
Mar. 31, 2021
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments (segment) | 4 |
Reportable Segments - Segment Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting Information | ||
Sales to external customers | $ 288.5 | $ 301.9 |
Depreciation and amortization expense | 19.5 | 23.6 |
Operating income (loss) | 28.9 | 15.8 |
Restructuring costs | 0.7 | 5.2 |
Operating Segments | Cryo Tank Solutions | ||
Segment Reporting Information | ||
Sales to external customers | 103.9 | 98.0 |
Depreciation and amortization expense | 3.9 | 4.4 |
Operating income (loss) | 15.6 | 11.6 |
Restructuring costs | 0.3 | 1.8 |
Operating Segments | Heat Transfer Systems | ||
Segment Reporting Information | ||
Sales to external customers | 69.2 | 112.9 |
Depreciation and amortization expense | 9.5 | 14.1 |
Operating income (loss) | 3.9 | 5.5 |
Restructuring costs | 0.4 | 2.8 |
Operating Segments | Specialty Products | ||
Segment Reporting Information | ||
Sales to external customers | 77.3 | 52.9 |
Depreciation and amortization expense | 3.1 | 1.4 |
Operating income (loss) | 17.9 | 13.8 |
Restructuring costs | 0.0 | 0.0 |
Operating Segments | Repair, Service & Leasing | ||
Segment Reporting Information | ||
Sales to external customers | 41.4 | 40.7 |
Depreciation and amortization expense | 2.6 | 3.3 |
Operating income (loss) | 8.3 | 4.6 |
Restructuring costs | 0.0 | 0.0 |
Intersegment Eliminations | ||
Segment Reporting Information | ||
Sales to external customers | (3.3) | (2.6) |
Depreciation and amortization expense | 0.0 | 0.0 |
Operating income (loss) | 0.0 | 0.0 |
Corporate | ||
Segment Reporting Information | ||
Sales to external customers | 0.0 | 0.0 |
Depreciation and amortization expense | 0.4 | 0.4 |
Operating income (loss) | (16.8) | (19.7) |
Restructuring costs | $ 0.0 | $ 0.6 |
Reportable Segments - Product Sales Information (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Segment Reporting Information | ||
Sales to external customers | $ 288.5 | $ 301.9 |
North America | ||
Segment Reporting Information | ||
Sales to external customers | 140.8 | 178.5 |
Europe, Middle East, Africa and India | ||
Segment Reporting Information | ||
Sales to external customers | 100.6 | 75.4 |
Asia-Pacific | ||
Segment Reporting Information | ||
Sales to external customers | 45.8 | 44.4 |
Rest of the World | ||
Segment Reporting Information | ||
Sales to external customers | 1.3 | 3.6 |
Operating Segments | Cryo Tank Solutions | ||
Segment Reporting Information | ||
Sales to external customers | 103.9 | 98.0 |
Operating Segments | Cryo Tank Solutions | North America | ||
Segment Reporting Information | ||
Sales to external customers | 41.1 | 40.6 |
Operating Segments | Cryo Tank Solutions | Europe, Middle East, Africa and India | ||
Segment Reporting Information | ||
Sales to external customers | 37.7 | 34.3 |
Operating Segments | Cryo Tank Solutions | Asia-Pacific | ||
Segment Reporting Information | ||
Sales to external customers | 24.2 | 20.1 |
Operating Segments | Cryo Tank Solutions | Rest of the World | ||
Segment Reporting Information | ||
Sales to external customers | 0.9 | 3.0 |
Operating Segments | Heat Transfer Systems | ||
Segment Reporting Information | ||
Sales to external customers | 69.2 | 112.9 |
Operating Segments | Heat Transfer Systems | North America | ||
Segment Reporting Information | ||
Sales to external customers | 46.3 | 82.2 |
Operating Segments | Heat Transfer Systems | Europe, Middle East, Africa and India | ||
Segment Reporting Information | ||
Sales to external customers | 7.8 | 9.5 |
Operating Segments | Heat Transfer Systems | Asia-Pacific | ||
Segment Reporting Information | ||
Sales to external customers | 14.8 | 20.9 |
Operating Segments | Heat Transfer Systems | Rest of the World | ||
Segment Reporting Information | ||
Sales to external customers | 0.3 | 0.3 |
Operating Segments | Specialty Products | ||
Segment Reporting Information | ||
Sales to external customers | 77.3 | 52.9 |
Operating Segments | Specialty Products | North America | ||
Segment Reporting Information | ||
Sales to external customers | 26.1 | 24.9 |
Operating Segments | Specialty Products | Europe, Middle East, Africa and India | ||
Segment Reporting Information | ||
Sales to external customers | 45.6 | 25.6 |
Operating Segments | Specialty Products | Asia-Pacific | ||
Segment Reporting Information | ||
Sales to external customers | 5.6 | 2.2 |
Operating Segments | Specialty Products | Rest of the World | ||
Segment Reporting Information | ||
Sales to external customers | 0.0 | 0.2 |
Operating Segments | Repair, Service & Leasing | ||
Segment Reporting Information | ||
Sales to external customers | 41.4 | 40.7 |
Operating Segments | Repair, Service & Leasing | North America | ||
Segment Reporting Information | ||
Sales to external customers | 29.0 | 32.1 |
Operating Segments | Repair, Service & Leasing | Europe, Middle East, Africa and India | ||
Segment Reporting Information | ||
Sales to external customers | 10.5 | 6.7 |
Operating Segments | Repair, Service & Leasing | Asia-Pacific | ||
Segment Reporting Information | ||
Sales to external customers | 1.8 | 1.7 |
Operating Segments | Repair, Service & Leasing | Rest of the World | ||
Segment Reporting Information | ||
Sales to external customers | 0.1 | 0.2 |
Intersegment Eliminations | ||
Segment Reporting Information | ||
Sales to external customers | (3.3) | (2.6) |
Intersegment Eliminations | North America | ||
Segment Reporting Information | ||
Sales to external customers | (1.7) | (1.3) |
Intersegment Eliminations | Europe, Middle East, Africa and India | ||
Segment Reporting Information | ||
Sales to external customers | (1.0) | (0.7) |
Intersegment Eliminations | Asia-Pacific | ||
Segment Reporting Information | ||
Sales to external customers | (0.6) | (0.5) |
Intersegment Eliminations | Rest of the World | ||
Segment Reporting Information | ||
Sales to external customers | $ 0.0 | $ (0.1) |
Reportable Segments - Assets (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets | ||
Assets | $ 2,652.3 | $ 2,570.5 |
Goodwill | 911.3 | 865.9 |
Identifiable intangible assets, net | 481.4 | 493.1 |
Cryo Tank Solutions | ||
Assets | ||
Goodwill | 88.4 | 93.2 |
Heat Transfer Systems | ||
Assets | ||
Goodwill | 432.6 | 435.2 |
Specialty Products | ||
Assets | ||
Goodwill | 225.2 | 172.4 |
Repair, Service & Leasing | ||
Assets | ||
Goodwill | 165.1 | 165.1 |
Operating Segments | ||
Assets | ||
Assets | 984.1 | 967.3 |
Operating Segments | Cryo Tank Solutions | ||
Assets | ||
Assets | 392.0 | 399.2 |
Operating Segments | Heat Transfer Systems | ||
Assets | ||
Assets | 230.1 | 247.2 |
Operating Segments | Specialty Products | ||
Assets | ||
Assets | 216.3 | 178.3 |
Operating Segments | Repair, Service & Leasing | ||
Assets | ||
Assets | 145.7 | 142.6 |
Corporate | ||
Assets | ||
Assets | $ 275.5 | $ 244.2 |
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Disaggregation of Revenue | ||
Sales to external customers | $ 288.5 | $ 301.9 |
Point in time | ||
Disaggregation of Revenue | ||
Sales to external customers | 190.0 | 162.2 |
Over time | ||
Disaggregation of Revenue | ||
Sales to external customers | 98.5 | 139.7 |
Operating Segments | Cryo Tank Solutions | ||
Disaggregation of Revenue | ||
Sales to external customers | 103.9 | 98.0 |
Operating Segments | Cryo Tank Solutions | Point in time | ||
Disaggregation of Revenue | ||
Sales to external customers | 98.7 | 89.8 |
Operating Segments | Cryo Tank Solutions | Over time | ||
Disaggregation of Revenue | ||
Sales to external customers | 5.2 | 8.2 |
Operating Segments | Heat Transfer Systems | ||
Disaggregation of Revenue | ||
Sales to external customers | 69.2 | 112.9 |
Operating Segments | Heat Transfer Systems | Point in time | ||
Disaggregation of Revenue | ||
Sales to external customers | 5.6 | 7.1 |
Operating Segments | Heat Transfer Systems | Over time | ||
Disaggregation of Revenue | ||
Sales to external customers | 63.6 | 105.8 |
Operating Segments | Specialty Products | ||
Disaggregation of Revenue | ||
Sales to external customers | 77.3 | 52.9 |
Operating Segments | Specialty Products | Point in time | ||
Disaggregation of Revenue | ||
Sales to external customers | 61.9 | 38.8 |
Operating Segments | Specialty Products | Over time | ||
Disaggregation of Revenue | ||
Sales to external customers | 15.4 | 14.1 |
Operating Segments | Repair, Service & Leasing | ||
Disaggregation of Revenue | ||
Sales to external customers | 41.4 | 40.7 |
Operating Segments | Repair, Service & Leasing | Point in time | ||
Disaggregation of Revenue | ||
Sales to external customers | 26.7 | 28.0 |
Operating Segments | Repair, Service & Leasing | Over time | ||
Disaggregation of Revenue | ||
Sales to external customers | 14.7 | 12.7 |
Intersegment Eliminations | ||
Disaggregation of Revenue | ||
Sales to external customers | (3.3) | (2.6) |
Intersegment Eliminations | Point in time | ||
Disaggregation of Revenue | ||
Sales to external customers | (2.9) | (1.5) |
Intersegment Eliminations | Over time | ||
Disaggregation of Revenue | ||
Sales to external customers | $ (0.4) | $ (1.1) |
Revenue - Change in Contract Assets and Liabilities (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Contract assets | |
Beginning accounts receivable, net of allowances | $ 200.8 |
Change in accounts receivable | (14.4) |
Ending accounts receivable, net of allowances | 186.4 |
Beginning unbilled contract revenue | 79.4 |
Change in unbilled contract revenue | (4.8) |
Ending unbilled contract revenue | $ 74.6 |
Change in accounts receivable (as a percentage) | (7.20%) |
Change in unbilled contract revenue (as a percentage) | (6.00%) |
Contract liabilities | |
Beginning balance customer advances and billings in excess of contract revenue | $ 118.9 |
Change in customer advances and billings in excess of contract revenue | (12.6) |
Ending balance customer advances and billings in excess of contract revenue | 106.3 |
Beginning long-term deferred revenue | 1.9 |
Change in long-term deferred revenue | (1.7) |
Ending long-term deferred revenue | $ 0.2 |
Change in customer advances and billings in excess of contract revenue (as a percentage) | (10.60%) |
Change in long-term deferred revenue (as a percentage) | (89.50%) |
Revenue - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Revenue from Contract with Customer [Abstract] | ||
Contract revenue recognized | $ 52.5 | $ 17.1 |
Remaining performance obligation | $ 934.1 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | ||
Disaggregation of Revenue | ||
Revenue, remaining performance obligation | 76.00% | |
Performance obligations expected to be satisfied, expected timing | 12 months |
Investments (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Debt and Equity Securities, FV-NI | ||
Balance at December 31, 2020 | $ 73.6 | |
New investments | 40.0 | $ 0.0 |
(Decrease) increase in fair value of investments in equity securities | 3.3 | |
Foreign currency translation adjustments | (2.3) | |
Balance at March 31, 2021 | 114.6 | |
Subtotal | ||
Debt and Equity Securities, FV-NI | ||
Balance at December 31, 2020 | 57.9 | |
New investments | 0.0 | |
(Decrease) increase in fair value of investments in equity securities | 3.3 | |
Foreign currency translation adjustments | (2.4) | |
Balance at March 31, 2021 | 58.8 | |
Investments in Equity Securities Level 1 | ||
Debt and Equity Securities, FV-NI | ||
Balance at December 31, 2020 | 53.8 | |
New investments | 0.0 | |
(Decrease) increase in fair value of investments in equity securities | (2.6) | |
Foreign currency translation adjustments | (2.4) | |
Balance at March 31, 2021 | 48.8 | |
Investments in Equity Securities, Level 2 | ||
Debt and Equity Securities, FV-NI | ||
Balance at December 31, 2020 | 4.1 | |
New investments | 0.0 | |
(Decrease) increase in fair value of investments in equity securities | 5.9 | |
Foreign currency translation adjustments | 0.0 | |
Balance at March 31, 2021 | 10.0 | |
Investments in Equity Securities, All Others | ||
Debt and Equity Securities, FV-NI | ||
Balance at December 31, 2020 | 15.7 | |
New investments | 40.0 | |
(Decrease) increase in fair value of investments in equity securities | 0.0 | |
Foreign currency translation adjustments | 0.1 | |
Balance at March 31, 2021 | $ 55.8 |
Investments - Narratives (Details) € in Millions, $ in Millions, $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2021
EUR (€)
|
Mar. 31, 2021
CAD ($)
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2020
EUR (€)
|
Dec. 31, 2020
CAD ($)
|
Sep. 30, 2019 |
|
Debt and Equity Securities, FV-NI | |||||||
Value of investment | $ 114.6 | $ 73.6 | |||||
HTEC | |||||||
Debt and Equity Securities, FV-NI | |||||||
Value of investment | $ 20 | $ 20 | |||||
McPhy | |||||||
Debt and Equity Securities, FV-NI | |||||||
Value of investment | 48.8 | € 41.6 | 53.8 | € 39.8 | |||
Stabilis Energy, Inc. | |||||||
Debt and Equity Securities, FV-NI | |||||||
Equity investment, cost | 10.0 | 4.1 | |||||
Unrealized gain | 5.9 | ||||||
HTEC | |||||||
Debt and Equity Securities, FV-NI | |||||||
Value of investment | 15.8 | 15.7 | |||||
Svante Inc. | |||||||
Debt and Equity Securities, FV-NI | |||||||
Value of investment | 15.0 | ||||||
Equity investment, cost | $ 15.0 | ||||||
Equity investments, ownership interest (percent) | 10.00% | 10.00% | 10.00% | ||||
Transform Materials | |||||||
Debt and Equity Securities, FV-NI | |||||||
Value of investment | $ 25.0 | ||||||
Equity investments, ownership interest (percent) | 5.00% | 5.00% | 5.00% | ||||
Liberty LNG | |||||||
Debt and Equity Securities, FV-NI | |||||||
Equity investments, ownership interest (percent) | 25.00% | ||||||
(Decrease) increase in fair value of investments in equity securities | $ 2.2 | $ 2.1 | |||||
Hudson Products de Mexico S.A. de CV | Investment in Joint Venture | |||||||
Debt and Equity Securities, FV-NI | |||||||
Equity investments, ownership interest (percent) | 50.00% | 50.00% | 50.00% | ||||
(Decrease) increase in fair value of investments in equity securities | $ 2.8 | $ 2.8 |
Leases - Narratives (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
facility
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Leases [Abstract] | |||
Right of use assets | $ 28.0 | $ 29.0 | |
Operating lease liability | 27.7 | 28.7 | |
Operating lease liabilities, current | $ 5.1 | 5.1 | $ 5.1 |
Weighted average lease term | 5 years 7 months 6 days | ||
Operating lease weighted average discount rate (percent) | 2.30% | ||
Operating lease rent expense | $ 3.0 | $ 2.9 | |
Number of operating contracts | facility | 7 |
Leases - Future Minimum Payments (Details) $ in Millions |
Mar. 31, 2021
USD ($)
|
---|---|
Future minimum lease payments for non-cancelable operating leases | |
2021 | $ 5.4 |
2022 | 6.2 |
2023 | 5.6 |
2024 | 5.1 |
2025 | 4.3 |
Thereafter | 3.5 |
Total future minimum lease payments | $ 30.1 |
Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 140.6 | $ 124.7 |
Work in process | 57.8 | 57.8 |
Finished goods | 81.5 | 65.9 |
Total inventories, net | 279.9 | 248.4 |
Inventory valuation reserve | $ 9.7 | $ 9.7 |
Goodwill and Intangible Assets - Goodwill (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Goodwill | |
Beginning balance, goodwill | $ 865.9 |
Goodwill acquired during the period | 52.1 |
Foreign currency translation adjustments | (7.4) |
Purchase price adjustment | 0.7 |
Ending balance, goodwill | 911.3 |
Cryo Tank Solutions | |
Goodwill | |
Beginning balance, goodwill | 93.2 |
Goodwill acquired during the period | 0.0 |
Foreign currency translation adjustments | (4.8) |
Purchase price adjustment | 0.0 |
Ending balance, goodwill | 88.4 |
Heat Transfer Systems | |
Goodwill | |
Beginning balance, goodwill | 435.2 |
Goodwill acquired during the period | 0.0 |
Foreign currency translation adjustments | (2.6) |
Purchase price adjustment | 0.0 |
Ending balance, goodwill | 432.6 |
Specialty Products | |
Goodwill | |
Beginning balance, goodwill | 172.4 |
Goodwill acquired during the period | 52.1 |
Foreign currency translation adjustments | 0.0 |
Purchase price adjustment | 0.7 |
Ending balance, goodwill | 225.2 |
Repair, Service & Leasing | |
Goodwill | |
Beginning balance, goodwill | 165.1 |
Goodwill acquired during the period | 0.0 |
Foreign currency translation adjustments | 0.0 |
Purchase price adjustment | 0.0 |
Ending balance, goodwill | $ 165.1 |
Goodwill and Intangible Assets - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Finite-Lived Intangible Assets | |||
Accumulated goodwill impairment loss | $ 129.0 | $ 129.0 | |
Amortization expense | 8.8 | $ 14.0 | |
Cryo Tank Solutions | |||
Finite-Lived Intangible Assets | |||
Accumulated goodwill impairment loss | 23.5 | 23.5 | |
Heat Transfer Systems | |||
Finite-Lived Intangible Assets | |||
Accumulated goodwill impairment loss | 49.3 | 49.3 | |
Specialty Products | |||
Finite-Lived Intangible Assets | |||
Accumulated goodwill impairment loss | 35.8 | 35.8 | |
Repair, Service & Leasing | |||
Finite-Lived Intangible Assets | |||
Accumulated goodwill impairment loss | $ 20.4 | $ 20.4 | |
Government grants | Minimum | |||
Finite-Lived Intangible Assets | |||
Finite lived intangible assets useful life (in years) | 10 years | ||
Government grants | Maximum | |||
Finite-Lived Intangible Assets | |||
Finite lived intangible assets useful life (in years) | 50 years |
Goodwill and Intangible Assets - Intangible Assets (Excluding Goodwill) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted Average Useful Life (in years) | 13 years | |
Gross Carrying Amount | $ 430.9 | $ 436.0 |
Accumulated Amortization | (92.6) | (86.8) |
Total intangible assets | 574.0 | 579.9 |
Trademarks and trade names | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Indefinite-lived intangible assets | $ 143.1 | 143.9 |
Customer relationships | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted Average Useful Life (in years) | 13 years | |
Gross Carrying Amount | $ 300.2 | 302.5 |
Accumulated Amortization | $ (65.0) | (59.9) |
Unpatented technology | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted Average Useful Life (in years) | 12 years | |
Gross Carrying Amount | $ 110.8 | 110.4 |
Accumulated Amortization | $ (24.2) | (22.3) |
Patents and other | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted Average Useful Life (in years) | 6 years | |
Gross Carrying Amount | $ 5.6 | 8.4 |
Accumulated Amortization | $ (0.4) | (1.8) |
Trademarks and trade names | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted Average Useful Life (in years) | 11 years | |
Gross Carrying Amount | $ 3.3 | 3.6 |
Accumulated Amortization | $ (1.6) | (1.4) |
Land use rights | ||
Schedule of Finite-lived and Indefinite-lived Intangible Assets | ||
Weighted Average Useful Life (in years) | 50 years | |
Gross Carrying Amount | $ 11.0 | 11.1 |
Accumulated Amortization | $ (1.4) | $ (1.4) |
Goodwill and Intangible Assets - Future Amortization Expense (Details) $ in Millions |
Mar. 31, 2021
USD ($)
|
---|---|
Estimated Amortization Expense for Intangible Assets | |
2021 | $ 35.7 |
2022 | 34.6 |
2023 | 34.4 |
2024 | 34.1 |
2025 | $ 33.2 |
Goodwill and Intangible Assets - Government Grants (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Finite-Lived Intangible Assets | ||
Gross carrying amount | $ 430.9 | $ 436.0 |
Government grants | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 7.6 | 7.8 |
Government grants | Current | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 0.5 | 0.5 |
Government grants | Long-term | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | $ 7.1 | $ 7.3 |
Debt and Credit Arrangements - Summary of Outstanding Borrowings (Details) € in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
|
Mar. 31, 2021
EUR (€)
|
Jan. 01, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2020
EUR (€)
|
Jun. 14, 2019
USD ($)
|
Nov. 06, 2017
USD ($)
|
|
Debt Instrument | ||||||||
Total debt, net of unamortized discount and debt issuance costs | $ 558,300,000 | $ 442,500,000 | ||||||
Less: current maturities | 255,200,000 | 220,900,000 | ||||||
Long-term debt | 303,100,000 | 221,600,000 | ||||||
Foreign currency transaction gain | 200,000 | $ (300,000) | ||||||
Convertible Notes, due 2024 | Convertible Debt | ||||||||
Debt Instrument | ||||||||
Unamortized debt issuance costs | (3,600,000) | $ (3,900,000) | (3,100,000) | |||||
Principal amount | 258,800,000 | $ 258,800,000 | 258,800,000 | $ 258,800,000 | ||||
Unamortized discount | 0 | (34,800,000) | ||||||
Convertible Debt | 255,200,000 | 220,900,000 | ||||||
Debt instrument stated interest rate (percent) | 1.00% | |||||||
Revolving Credit Facility | Credit Facilities 2019 | ||||||||
Debt Instrument | ||||||||
Unamortized debt issuance costs | (4,700,000) | (5,000,000.0) | ||||||
Senior secured revolving credit facility and term loan, net of debt issuance costs | 303,100,000 | 221,600,000 | ||||||
Revolving Credit Facility | Term loan | ||||||||
Debt Instrument | ||||||||
Long term debt | $ 103,100,000 | $ 103,100,000 | ||||||
Principal amount | $ 450,000,000.0 | |||||||
Debt instrument stated interest rate (percent) | 2.00% | 2.00% | 2.50% | 2.50% | ||||
Revolving Credit Facility | Senior secured revolving credit facility | ||||||||
Debt Instrument | ||||||||
Long term debt | $ 204,700,000 | $ 123,500,000 | ||||||
Unamortized debt issuance costs | $ (7,300,000) | |||||||
Maximum borrowing capacity | $ 550,000,000.0 | |||||||
Weighted average interest rate (percent) | 1.80% | 1.80% | 2.10% | 2.10% | ||||
Letters of credit outstanding | $ 53,100,000 | |||||||
Line of credit remaining borrowing amount | 292,200,000 | |||||||
Revolving Credit Facility | Euro senior secured revolving credit facility | ||||||||
Debt Instrument | ||||||||
Long term debt | 83,800,000 | € 71.5 | $ 87,700,000 | € 71.5 | ||||
Foreign currency transaction gain | 3,900,000 | |||||||
Revolving Credit Facility | Foreign facilities | ||||||||
Debt Instrument | ||||||||
Foreign facilities | 0 | $ 0 | ||||||
Maximum borrowing capacity | 80,900,000 | |||||||
Weighted average interest rate (percent) | 1.30% | 1.30% | ||||||
Letters of credit outstanding | 51,600,000 | $ 47,700,000 | ||||||
Revolving Credit Facility Sub-limit - Letters of Credit | Senior secured revolving credit facility | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | 100,000,000.0 | |||||||
Revolving Credit Facility Sub-limit - Discretionary Letters of Credit | Senior secured revolving credit facility | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | 250,000,000.0 | |||||||
Revolving Credit Facility Sub-limit - Swingline | Senior secured revolving credit facility | ||||||||
Debt Instrument | ||||||||
Maximum borrowing capacity | $ 50,000,000.0 |
Debt and Credit Arrangements - Senior Secured Revolving Credit Facility and Term Loan (Details) - Revolving Credit Facility - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Apr. 20, 2020 |
Jun. 14, 2019 |
Mar. 31, 2021 |
Dec. 31, 2020 |
|
Credit Facilities 2019 | ||||
Debt Instrument | ||||
Maximum percentage of capital stock guaranteed by company | 65.00% | |||
Unamortized debt issuance costs | $ 4,700,000 | $ 5,000,000.0 | ||
Credit Facilities 2019 | Adjusted Base Rate | Minimum | ||||
Debt Instrument | ||||
Debt instrument variable interest rate (percent) | 0.25% | |||
Credit Facilities 2019 | Adjusted Base Rate | Maximum | ||||
Debt Instrument | ||||
Debt instrument variable interest rate (percent) | 1.50% | |||
Credit Facilities 2019 | LIBOR | Minimum | ||||
Debt Instrument | ||||
Debt instrument variable interest rate (percent) | 1.25% | |||
Credit Facilities 2019 | LIBOR | Maximum | ||||
Debt Instrument | ||||
Debt instrument variable interest rate (percent) | 2.50% | |||
Senior secured revolving credit facility | ||||
Debt Instrument | ||||
Maximum borrowing capacity | $ 550,000,000.0 | |||
Payments for debt issuance costs | $ 1,900,000 | 11,900,000 | ||
Unamortized debt issuance costs | 7,300,000 | |||
Term loan | ||||
Debt Instrument | ||||
Principal amount | $ 450,000,000.0 | |||
Debt issuance costs | $ 6,100,000 | |||
Debt issuance cost, amortization term | 5 years |
Debt and Credit Arrangements - Interest Expense and Financing Cost Amortization (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Debt Instrument | ||
Interest expense excluding amortization | $ 2.0 | $ 7.2 |
Financing costs amortization | 1.2 | 1.0 |
Revolving Credit Facility | ||
Debt Instrument | ||
Interest expense excluding amortization | 1.3 | 4.8 |
Financing costs amortization | 1.0 | 0.8 |
Revolving Credit Facility | Term loan | ||
Debt Instrument | ||
Interest expense excluding amortization | 0.6 | 4.2 |
Revolving Credit Facility | Senior secured revolving credit facility | ||
Debt Instrument | ||
Interest expense excluding amortization | $ 0.7 | $ 0.6 |
Debt and Credit Arrangements - 2024 Notes Narratives (Details) $ / shares in Units, shares in Thousands |
1 Months Ended | 3 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Apr. 01, 2021
day
$ / shares
|
Nov. 06, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
$ / shares
|
Mar. 31, 2021
USD ($)
day
$ / shares
|
Dec. 31, 2020
USD ($)
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2018
shares
|
Oct. 31, 2017
$ / shares
|
|
Debt Instrument | ||||||||
Share price (usd per share) | $ / shares | $ 142.35 | $ 43.50 | ||||||
Convertible Debt | Convertible Notes, due 2024 | ||||||||
Debt Instrument | ||||||||
Debt instrument stated interest rate (percent) | 1.00% | |||||||
Debt instrument face amount | $ 258,800,000 | $ 258,800,000 | $ 258,800,000 | $ 258,800,000 | ||||
Share conversion rate(per share) | 0.0170285 | |||||||
Debt instrument, conversion price (usd per share) | $ / shares | $ 58.725 | |||||||
Debt instrument, conversion premium | 35.00% | |||||||
Value of securities above principal amount of debt if converted | $ 368,500,000 | |||||||
Debt instrument, threshold for consecutive trading days | day | 20 | |||||||
Debt instrument, threshold for consecutive trading days | day | 30 | |||||||
Applicable conversion price threshold (as percentage) | 130.00% | |||||||
Maximum days after five trading days | 5 days | |||||||
Applicable conversion price, less than (as percentage) | 97.00% | |||||||
Debt instrument effective interest rate | 4.80% | |||||||
Non cash payment for derivative instrument | $ 59,500,000 | |||||||
Number of shares underlying warrant | shares | 4,410 | |||||||
Proceeds from issuances of warrants | $ 46,000,000.0 | |||||||
Percentage above previous sales price | 65.00% | |||||||
Net cost of convertible note hedge and warrant | $ 13,500,000 | |||||||
Convertible Debt | Convertible Notes, due 2024 | Subsequent Event | ||||||||
Debt Instrument | ||||||||
Debt instrument, conversion price (usd per share) | $ / shares | $ 76.3425 | |||||||
Debt instrument, threshold for consecutive trading days | day | 20 | |||||||
Applicable conversion price threshold (as percentage) | 130.00% | |||||||
Convertible Debt | Convertible Notes, due 2024 | Maximum | ||||||||
Debt Instrument | ||||||||
Debt instrument, conversion price (usd per share) | $ / shares | $ 71.775 | |||||||
Convertible Debt | Convertible Notes, due 2024 | Liability Component | ||||||||
Debt Instrument | ||||||||
Debt instrument face amount | $ 200,100,000 | |||||||
Debt issuance costs | 5,300,000 | |||||||
Convertible Debt | Convertible Notes, due 2024 | Equity Component | ||||||||
Debt Instrument | ||||||||
Debt instrument face amount | 58,700,000 | |||||||
Debt issuance costs | $ 1,500,000 |
Debt and Credit Arrangements - Notes Interest Accretion Schedule (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Nov. 06, 2017 |
|
Debt Instrument | |||
Interest accretion of convertible notes discount | $ 0.0 | $ 1.9 | |
Interest expense excluding amortization | 2.0 | 7.2 | |
Financing costs amortization | 1.2 | 1.0 | |
Convertible Debt | Convertible Notes, due 2024 | |||
Debt Instrument | |||
Interest accretion of convertible notes discount | 0.0 | 1.9 | |
Interest expense excluding amortization | 0.6 | 0.6 | |
Total interest expense | 0.6 | 2.5 | |
Financing costs amortization | $ 0.2 | $ 0.2 | |
Debt instrument stated interest rate (percent) | 1.00% |
Debt and Credit Arrangements - Foreign Facilities (Details) - Foreign facilities - Revolving Credit Facility - USD ($) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Instrument | ||
Maximum borrowing capacity | $ 80,900,000 | |
Weighted average interest rate (percent) | 1.30% | |
Letters of credit outstanding | $ 51,600,000 | $ 47,700,000 |
Debt and Credit Arrangements - Letters of Credit (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Debt Disclosure [Abstract] | ||
Restricted cash | $ 1.0 | |
Restricted cash, noncurrent | $ 1.0 | $ 1.0 |
Debt and Credit Arrangements - Fair Value Disclosures about Debt (Details) |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Convertible Debt | Convertible Notes, due 2024 | ||
Debt Instrument | ||
Debt instrument percentage over par value | 242.00% | 210.00% |
Product Warranties (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Movement in Standard Product Warranty Accrual | |
Beginning balance standard product warranty accrual | $ 11.9 |
Issued – warranty expense | (0.9) |
Warranty usage | 0.3 |
Ending balance standard product warranty accrual | $ 11.3 |
Business Combinations - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Feb. 16, 2021 |
Dec. 23, 2020 |
Nov. 03, 2020 |
Oct. 13, 2020 |
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Business Acquisition | |||||||
Payment for acquisition of businesses, net of cash acquired | $ 55.0 | $ 0.0 | |||||
Cash acquired from acquisition | $ 0.6 | ||||||
Goodwill | 911.3 | $ 865.9 | |||||
Contingent consideration | 20.9 | 20.1 | |||||
Cryogenic Technologies | |||||||
Business Acquisition | |||||||
Voting percentage acquired | 100.00% | ||||||
Payment for acquisition of businesses, net of cash acquired | $ 55.0 | ||||||
Net assets acquired, excluding goodwill | 2.9 | ||||||
Goodwill | 52.1 | ||||||
Identifiable intangible assets | $ 1.8 | ||||||
SES | |||||||
Business Acquisition | |||||||
Net assets acquired, excluding goodwill | $ 13.4 | ||||||
Goodwill | 24.0 | ||||||
Identifiable intangible assets | 17.3 | ||||||
Payments for acquisition of business excluding working capital adjustments | 20.0 | ||||||
Potential earn-out not to exceed amount | 25.0 | ||||||
Contingent consideration | $ 16.9 | 17.6 | 16.9 | ||||
BIG | |||||||
Business Acquisition | |||||||
Net assets acquired, excluding goodwill | $ 8.8 | ||||||
Goodwill | 14.8 | ||||||
Decrease in estimated fair value of intangibles | 0.7 | ||||||
Identifiable intangible assets | 6.2 | ||||||
Payments for acquisition of business excluding working capital adjustments | 20.0 | ||||||
Potential earn-out not to exceed amount | 6.0 | ||||||
Contingent consideration | $ 3.2 | 3.3 | $ 3.2 | ||||
Alabama Trailers | |||||||
Business Acquisition | |||||||
Payments for acquisition of business excluding working capital adjustments | $ 10.0 | ||||||
Gain on bargain purchase | $ 5.0 | ||||||
Sustainable Energy Solutions And Blue In Green LLC | Minimum | Scenario, Plan | |||||||
Business Acquisition | |||||||
Contingent consideration | 0.0 | ||||||
Sustainable Energy Solutions And Blue In Green LLC | Maximum | Scenario, Plan | |||||||
Business Acquisition | |||||||
Contingent consideration | $ 31.0 |
Business Combinations - Contingent Consideration Rollforward (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2021
USD ($)
| |
Contingent Consideration | |
Balance at December 31, 2020 | $ 20.1 |
Increase in fair value of contingent consideration liabilities | 0.8 |
Balance at March 31, 2021 | 20.9 |
SES | |
Contingent Consideration | |
Balance at December 31, 2020 | 16.9 |
Increase in fair value of contingent consideration liabilities | 0.7 |
Balance at March 31, 2021 | 17.6 |
BIG | |
Contingent Consideration | |
Balance at December 31, 2020 | 3.2 |
Increase in fair value of contingent consideration liabilities | 0.1 |
Balance at March 31, 2021 | $ 3.3 |
Accumulated Other Comprehensive (Loss) Income - Accumulated Other Comprehensive Loss Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Accumulated Other Comprehensive Loss | ||
Beginning balance | $ 1,579.3 | $ 1,232.4 |
Ending balance | 1,566.0 | 1,214.9 |
Accumulated other comprehensive income (loss) | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | 2.4 | (35.9) |
Other comprehensive income (loss) | (19.6) | (10.2) |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.4 | 0.3 |
Net current-period other comprehensive (loss) income, net of taxes | (19.2) | (9.9) |
Ending balance | (16.8) | (45.8) |
Foreign currency translation adjustments | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | 13.8 | (25.0) |
Other comprehensive income (loss) | (19.6) | (10.2) |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.0 | 0.0 |
Net current-period other comprehensive (loss) income, net of taxes | (19.6) | (10.2) |
Ending balance | (5.8) | (35.2) |
Pension liability adjustments, net of taxes | ||
Accumulated Other Comprehensive Loss | ||
Beginning balance | (11.4) | (10.9) |
Other comprehensive income (loss) | 0.0 | 0.0 |
Amounts reclassified from accumulated other comprehensive income (loss), net of income taxes | 0.4 | 0.3 |
Net current-period other comprehensive (loss) income, net of taxes | 0.4 | 0.3 |
Ending balance | $ (11.0) | $ (10.6) |
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Net income attributable to Chart Industries, Inc. | ||
Income from continuing operations | $ 25.6 | $ 2.1 |
Income from discontinued operations, net of tax | 0.0 | 6.4 |
Net income attributable to Chart Industries, Inc. | $ 25.6 | $ 8.5 |
Earnings per common share – basic: | ||
Income from continuing operations (usd per share) | $ 0.72 | $ 0.06 |
Income from discontinued operations (usd per share) | 0 | 0.18 |
Net income attributable to Chart Industries, Inc. (usd per share) | 0.72 | 0.24 |
Earnings per common share – diluted: | ||
Income from continuing operations (usd per share) | 0.63 | 0.06 |
Income from discontinued operations (usd per share) | 0 | 0.18 |
Net income attributable to Chart Industries, Inc. (usd per share) | $ 0.63 | $ 0.24 |
Weighted average number of common shares outstanding — basic (shares) | 35,550 | 35,770 |
Incremental shares issuable upon assumed conversion and exercise of share-based awards (shares) | 330 | 240 |
Incremental shares issuable due to dilutive effect of convertible (shares) | 2,570 | 0 |
Incremental shares issuable due to dilutive effect of warrants (shares) | 2,170 | 0 |
Weighted average number of common shares outstanding – diluted (shares) | 40,620 | 36,010 |
Earnings Per Share - Antidilutive Securities (Details) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 2,630 | 4,910 |
Share-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 60 | 500 |
Convertible note hedge and capped call transactions | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 2,570 | 0 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Total anti-dilutive securities | 0 | 4,410 |
Earnings Per Share - Narratives (Details) - Convertible Notes, due 2024 - Convertible Debt - $ / shares |
Mar. 31, 2021 |
Dec. 31, 2017 |
---|---|---|
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Debt instrument, conversion price (usd per share) | $ 58.725 | |
Maximum | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Debt instrument, conversion price (usd per share) | $ 71.775 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Dec. 31, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 3.1 | $ 0.4 | |
Effective income tax rate (percent) | 10.60% | 16.00% | |
Unrecognized tax benefits | $ 1.9 | ||
Unrecognized tax benefit that would impact effective tax rate | $ 1.3 | ||
Income tax penalties and interest accrued | $ 0.3 |
Share-based Compensation (Details) - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, fair value of awards granted | $ 12.5 | |
Allocated share-based compensation expense | 3.4 | $ 2.9 |
Share based compensation expense not yet recognized | $ 18.0 | |
Period in which unrecognized share based compensation will be recognized (in years) | 2 years 4 months 24 days | |
Director | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, fair value of restricted shares granted | $ 0.1 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, shares granted (shares) | 60 | |
Share-based compensation, shares exercised (shares) | 100 | |
Share-based compensation, vesting period (in years) | 4 years | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, restricted shares granted (shares) | 50 | |
Share-based compensation, vesting period (in years) | 3 years | |
Share-based compensation, shares vested other than options (shares) | 70 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, restricted shares granted (shares) | 30 | |
Share-based compensation, vesting period (in years) | 3 years | |
Share-based compensation, shares vested other than options (shares) | 10 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share-based compensation, shares vested other than options (shares) | 70 |
Commitment and Contingencies - Narratives (Details) - USD ($) $ in Millions |
Mar. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Accrued environmental reserve | $ 0.3 | $ 0.3 |
Restructuring Activities - Narratives (Details) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2021
USD ($)
|
Mar. 31, 2020
USD ($)
|
Jul. 17, 2020
a
|
|
Restructuring Cost and Reserve | |||
Restructuring costs | $ 0.7 | $ 5.2 | |
Facility In Beasley, Texas | |||
Restructuring Cost and Reserve | |||
Area of land (acres) | a | 260 | ||
Lease facility in Tulsa, Oklahoma | Facility Closing | |||
Restructuring Cost and Reserve | |||
Restructuring costs | 2.7 | ||
Lease facility in Tulsa, Oklahoma | Facility Closing | Scenario, Plan | |||
Restructuring Cost and Reserve | |||
Restructuring costs | $ 9.0 |
Restructuring Activities - Restructuring Charges (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Restructuring Cost and Reserve | ||
Severance costs | $ 0.3 | $ 5.2 |
Other restructuring costs | 0.4 | 0.0 |
Total restructuring costs | 0.7 | 5.2 |
Cost of sales | ||
Restructuring Cost and Reserve | ||
Severance costs | 0.0 | 2.3 |
Other restructuring costs | 0.4 | 0.0 |
Selling, general, and administrative expenses | ||
Restructuring Cost and Reserve | ||
Severance costs | $ 0.3 | $ 2.9 |
Restructuring Activities - Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
|
Restructuring Reserve | ||
Beginning balance, restructuring accrual | $ 0.8 | $ 0.9 |
Restructuring charges | 0.7 | 5.2 |
Cash payments and other | (1.0) | (3.3) |
Ending balance, restructuring accrual | 0.5 | 2.8 |
Operating Segments | Cryo Tank Solutions | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0.5 | 0.5 |
Restructuring charges | 0.3 | 1.8 |
Cash payments and other | (0.3) | (0.8) |
Ending balance, restructuring accrual | 0.5 | 1.5 |
Operating Segments | Heat Transfer Systems | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0.2 | 0.2 |
Restructuring charges | 0.4 | 2.8 |
Cash payments and other | (0.6) | (2.5) |
Ending balance, restructuring accrual | 0.0 | 0.5 |
Operating Segments | Specialty Products | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0.0 | 0.0 |
Restructuring charges | 0.0 | 0.0 |
Cash payments and other | 0.0 | 0.0 |
Ending balance, restructuring accrual | 0.0 | 0.0 |
Operating Segments | Repair, Service & Leasing | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0.0 | 0.0 |
Restructuring charges | 0.0 | 0.0 |
Cash payments and other | 0.0 | 0.0 |
Ending balance, restructuring accrual | 0.0 | 0.0 |
Corporate | ||
Restructuring Reserve | ||
Beginning balance, restructuring accrual | 0.1 | 0.2 |
Restructuring charges | 0.0 | 0.6 |
Cash payments and other | (0.1) | 0.0 |
Ending balance, restructuring accrual | $ 0.0 | $ 0.8 |