MILWAUKEE, — Briggs & Stratton Corporation (NYSE: BGG) today announced financial results for its fiscal third quarter ended April 1, 2018.
“We achieved sales growth in the third quarter from higher generator sales and from our business diversification initiatives focused on more commercial customers and applications,” said Todd J. Teske, Chairman, President and Chief Executive Officer. “This sales growth came about despite the headwind of unusually high snowfall on the east coast of the U.S. and an unseasonably cold start to spring in the U.S. and Europe. The unseasonable spring weather has not yet abated; in fact, there has been record snowfall across much of the midwestern portion of the U.S. into the middle of April and continued cool temperatures which have effectively delayed the start of the spring growing season by over a month. Although the season has been delayed, we do expect a solid grass growing season as there is adequate ground moisture in the areas where lawns are prevalent. Compounding the spring weather challenges, engine sales for residential mowers were negatively impacted in the third quarter by actions certain of our channel partners are taking to prepare for the anticipated transition of brands next season at a major retailer. This transition has led to our channel partners taking a cautious approach to ordering for this season to reduce inventories and effect a more efficient transition following the end of the season. While we now expect this brand transition to present a near-term challenge for us achieving our planned sales this season, we are confident of our future success in this category. Homeowners will continue to rely upon our trusted brand and benefit from our innovative products that make work easier.”
Teske continued, “Looking ahead, we remain confident in our abilities to achieve our long-term growth and profitability objectives. More commercial customers are turning to Briggs & Stratton for the innovation we are bringing to higher-growth products and solutions which improve the productivity and safety of workers in commercial cutting, infrastructure, construction and other demanding jobs. Revenue growth in this area is 13% for the trailing 12 months. At the same time our position as the leading and preferred global supplier of power for residential lawn and garden is secure behind continued innovation. The business optimization program is on track to deliver $30-35 million in annual profit improvement.”
Outlook:
Updated fiscal 2018 guidance:
Conference Call Information:
The company will host a conference call tomorrow at 10:00 AM (ET) to review the third quarter financial results. A live webcast of the conference call will be available on the company’s corporate website: http://investors.basco.com.
Also available is a dial-in number to access the call real-time at (877) 233-9136 and enter Conference ID 4737929. A replay will be offered beginning approximately two hours after the call ends and will be available for one week. Dial (855) 859-2056 and enter the Conference ID to access the replay.
Non-GAAP Financial Measures:
This release refers to non-GAAP financial measures including “adjusted gross profit”, “adjusted engineering, selling, general, and administrative expenses”, “adjusted segment income (loss)”, “adjusted net income (loss)”, and “adjusted diluted earnings (loss) per share.” Refer to the accompanying financial schedules for supplemental financial data and corresponding reconciliations of these non-GAAP financial measures to certain GAAP financial measures.
Safe Harbor Statement:
This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. The words “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “intend”, “plan”, “project”, and similar expressions are intended to identify forward-looking statements. The forward-looking statements are based on the company’s current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully forecast demand for its products; changes in interest rates and foreign exchange rates; the effects of weather on the purchasing patterns of consumers and original equipment manufacturers (OEMs); actions of engine manufacturers and OEMs with whom the company competes; changes in laws and regulations, including U.S. tax reform, changes in tax rates, laws and regulations as well as related guidance; changes in customer and OEM demand; changes in prices of raw materials and parts that the company purchases; changes in domestic and foreign economic conditions (including effects from the U.K.’s decision to exit the European Union); the ability to bring new productive capacity on line efficiently and with good quality; outcomes of legal proceedings and claims; the ability to realize anticipated savings from restructuring actions; and other factors disclosed from time to time in the company’s SEC filings or otherwise, including the factors discussed in Item 1A, Risk Factors, of the company’s Annual Report on Form 10-K and in its periodic reports on Form 10-Q. The company undertakes no obligation to update forward-looking statements made in this release to reflect events or circumstances after the date of this release.
About Briggs & Stratton Corporation:
Briggs & Stratton Corporation (NYSE: BGG), headquartered in Milwaukee, Wisconsin, is focused on providing power to get work done and make people’s lives better. Briggs & Stratton is the world’s largest producer of gasoline engines for outdoor power equipment, and is a leading designer, manufacturer and marketer of power generation, pressure washer, lawn and garden, turf care and job site products through its Briggs & Stratton®, Simplicity®, Snapper®, Ferris®, Vanguard™, Allmand®, Billy Goat®, Murray®, Branco®, and Victa® brands. Briggs & Stratton products are designed, manufactured, marketed and serviced in over 100 countries on six continents. For additional information, please visit www.basco.com and www.briggsandstratton.com.
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES |
||||||||
Consolidated Statements of Operations for the Periods Ended March |
||||||||
(In Thousands, except per share data) |
||||||||
Three Months Ended March |
Nine Months Ended March |
|||||||
FY2018 |
FY2017 |
FY2018 |
FY2017 |
|||||
NET SALES |
$ 604,069 |
$ 596,965 |
$ 1,379,599 |
$ 1,311,998 |
||||
COST OF GOODS SOLD |
473,796 |
462,194 |
1,090,196 |
1,029,299 |
||||
Gross Profit |
130,273 |
134,771 |
289,403 |
282,699 |
||||
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES |
79,885 |
78,279 |
244,490 |
223,373 |
||||
EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES |
713 |
1,079 |
6,438 |
7,318 |
||||
Income from Operations |
51,101 |
57,571 |
51,351 |
66,644 |
||||
INTEREST EXPENSE |
(8,617) |
(5,521) |
(19,167) |
(15,159) |
||||
OTHER INCOME |
1,079 |
844 |
2,483 |
1,679 |
||||
Income before Income Taxes |
43,563 |
52,894 |
34,667 |
53,164 |
||||
PROVISION FOR INCOME TAXES |
11,675 |
17,075 |
34,163 |
16,242 |
||||
Net Income |
$ 31,888 |
$ 35,819 |
$ 504 |
$ 36,922 |
||||
EARNINGS PER SHARE |
||||||||
Basic |
$ 0.74 |
$ 0.83 |
$ 0.00 |
$ 0.86 |
||||
Diluted |
$ 0.74 |
$ 0.83 |
$ 0.00 |
$ 0.86 |
||||
WEIGHTED AVERAGE SHARES OUTSTANDING |
||||||||
Basic |
42,064 |
42,076 |
42,108 |
42,217 |
||||
Diluted |
42,307 |
42,175 |
42,362 |
42,271 |
Supplemental International Sales Information |
||||||||
(In Thousands) |
||||||||
Three Months Ended March |
Nine Months Ended March |
|||||||
FY2018 |
FY2017 |
FY2018 |
FY2017 |
|||||
International sales based on product shipment destination |
$ 160,653 |
$ 171,565 |
$ 432,538 |
$ 440,179 |
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES |
|||
Consolidated Balance Sheets as of the End of March |
|||
(In Thousands) |
|||
CURRENT ASSETS: |
FY2018 |
FY2017 |
|
Cash and Cash Equivalents |
$ 56,165 |
$ 52,097 |
|
Accounts Receivable, Net |
259,472 |
298,990 |
|
Inventories |
438,492 |
413,572 |
|
Prepaid Expenses and Other Current Assets |
35,953 |
22,178 |
|
Total Current Assets |
790,082 |
786,837 |
|
OTHER ASSETS: |
|||
Goodwill |
164,213 |
161,823 |
|
Investments |
50,224 |
49,535 |
|
Other Intangible Assets, Net |
98,021 |
101,847 |
|
Deferred Income Tax Asset |
34,886 |
85,007 |
|
Other Long-Term Assets, Net |
20,932 |
19,182 |
|
Total Other Assets |
368,276 |
417,394 |
|
PLANT AND EQUIPMENT: |
|||
At Cost |
1,161,535 |
1,086,778 |
|
Less – Accumulated Depreciation |
762,186 |
742,240 |
|
Plant and Equipment, Net |
399,349 |
344,538 |
|
$ 1,557,707 |
$ 1,548,769 |
||
CURRENT LIABILITIES: |
|||
Accounts Payable |
$ 202,822 |
$ 212,974 |
|
Short-Term Debt |
131,556 |
62,300 |
|
Accrued Liabilities |
157,895 |
144,023 |
|
Total Current Liabilities |
492,273 |
419,297 |
|
OTHER LIABILITIES: |
|||
Accrued Pension Cost |
197,749 |
297,170 |
|
Accrued Employee Benefits |
21,787 |
22,649 |
|
Accrued Postretirement Health Care Obligation |
29,547 |
31,126 |
|
Other Long-Term Liabilities |
53,737 |
43,320 |
|
Long-Term Debt |
202,332 |
221,682 |
|
Total Other Liabilities |
505,152 |
615,947 |
|
SHAREHOLDERS’ INVESTMENT: |
|||
Common Stock |
579 |
579 |
|
Additional Paid-In Capital |
75,001 |
73,269 |
|
Retained Earnings |
1,089,364 |
1,093,323 |
|
Accumulated Other Comprehensive Loss |
(280,546) |
(330,293) |
|
Treasury Stock, at Cost |
(324,116) |
(323,353) |
|
Total Shareholders’ Investment |
560,282 |
513,525 |
|
$ 1,557,707 |
$ 1,548,769 |
||
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES |
|||
Consolidated Statements of Cash Flows |
|||
(In Thousands) |
|||
Nine Months Ended March |
|||
CASH FLOWS FROM OPERATING ACTIVITIES: |
FY2018 |
FY2017 |
|
Net Income |
$ 504 |
$ 36,922 |
|
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities: |
|||
Depreciation and Amortization |
43,756 |
42,177 |
|
Stock Compensation Expense |
5,312 |
4,560 |
|
Loss on Disposition of Plant and Equipment |
1,595 |
610 |
|
Provision for Deferred Income Taxes |
24,744 |
7,574 |
|
Equity in Earnings of Unconsolidated Affiliates |
(9,068) |
(7,318) |
|
Dividends Received from Unconsolidated Affiliates |
9,810 |
8,186 |
|
Pension Cash Contributions |
(30,000) |
– |
|
Changes in Operating Assets and Liabilities: |
|||
Accounts Receivable |
(25,948) |
(110,978) |
|
Inventories |
(62,780) |
(27,553) |
|
Other Current Assets |
(3,430) |
584 |
|
Accounts Payable, Accrued Liabilities and Income Taxes |
11,287 |
30,041 |
|
Other, Net |
15,198 |
(11,269) |
|
Net Cash Used in Operating Activities |
(19,020) |
(26,464) |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|||
Capital Expenditures |
(77,483) |
(48,780) |
|
Proceeds Received on Disposition of Plant and Equipment |
339 |
1,014 |
|
Cash Paid for Acquisitions, Net of Cash Acquired |
(1,800) |
– |
|
Proceeds on Sale of Investment in Marketable Securities |
– |
3,343 |
|
Increase to Restricted Cash |
(9,053) |
– |
|
Net Cash Used in Investing Activities |
(87,997) |
(44,423) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|||
Net Borrowings on Revolver |
131,556 |
62,300 |
|
Long Term Note Payable |
7,685 |
– |
|
Debt Issuance Costs |
(1,154) |
– |
|
Treasury Stock Purchases |
(8,710) |
(17,924) |
|
Repayment of Long Term Debt |
(19,781) |
– |
|
Payment of Acquisition Contingent Liability |
– |
(1,625) |
|
Stock Option Exercise Proceeds and Tax Benefits |
3,943 |
4,751 |
|
Payments Related to Shares Withheld for Taxes for Stock Compensation |
(1,147) |
(1,739) |
|
Cash Dividends Paid |
(12,007) |
(12,028) |
|
Net Cash Provided by Financing Activities |
100,385 |
33,735 |
|
EFFECT OF EXCHANGE RATE CHANGES |
1,090 |
(590) |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
(5,542) |
(37,742) |
|
CASH AND CASH EQUIVALENTS, Beginning |
61,707 |
89,839 |
|
CASH AND CASH EQUIVALENTS, Ending |
$ 56,165 |
$ 52,097 |
Liquidity and Capital Resources:
Net debt at April 1, 2018 was $278.8 million (total Long-Term Debt and Short-Term Debt, excluding related debt issuance costs, of $334.8 million less $56.2 million of cash), compared with $233.4 million (total Long-Term Debt and Short-Term Debt, excluding debt issuance costs, of $285.4 million less $52.1 million of cash) at April 2, 2017.
Cash flows used in operating activities for the first nine months of fiscal 2018 were $19.0 million, compared to $26.5 million for the first nine months of fiscal 2017. The decrease in cash used in operating activities was primarily related to changes in working capital, including more rapid collections of accounts receivable partially offset by higher inventory levels due to timing of shipments. The improvement in operating cash flows was partially offset by a $30 millionvoluntary contribution made to the pension plan in the third quarter of fiscal 2018.
During the first nine months of fiscal 2018, the company repurchased approximately 383,000 shares of its common stock (including approximately 242,000 in the third quarter) on the open market at an average price of $22.76 per share. As of April 1, 2018, there was remaining authorization to repurchase up to approximately $22 million of common stock with an expiration date of June 29, 2018. Subsequent to the end of the quarter, the Board of Directors authorized an additional $50 million under the share repurchase program with an expiration date of June 30, 2020. Further, during the third quarter of fiscal 2018, the company repurchased approximately $19.8 million of Senior Notes after receiving unsolicited offers from bondholders.
SUPPLEMENTAL SEGMENT INFORMATION
Engines Segment: |
||||||||
Three Months Ended March |
Nine Months Ended March |
|||||||
(In Thousands) |
FY2018 |
FY2017 |
FY2018 |
FY2017 |
||||
Net Sales |
$ 384,292 |
$ 391,063 |
$ 790,543 |
$ 806,298 |
||||
Gross Profit as Reported |
$ 96,780 |
$ 98,814 |
$ 183,428 |
$ 191,373 |
||||
Business Optimization |
903 |
– |
2,031 |
– |
||||
Adjusted Gross Profit |
$ 97,683 |
$ 98,814 |
$ 185,459 |
$ 191,373 |
||||
Gross Profit % as Reported |
25.2% |
25.3% |
23.2% |
23.7% |
||||
Adjusted Gross Profit % |
25.4% |
25.3% |
23.5% |
23.7% |
||||
Segment Income as Reported |
$ 47,989 |
$ 50,946 |
$ 36,590 |
$ 57,216 |
||||
Business Optimization |
2,896 |
– |
7,243 |
– |
||||
Adjusted Segment Income |
$ 50,885 |
$ 50,946 |
$ 43,833 |
$ 57,216 |
||||
Segment Income % as Reported |
12.5% |
13.0% |
4.6% |
7.1% |
||||
Adjusted Segment Income % |
13.2% |
13.0% |
5.5% |
7.1% |
Third Quarter Highlights
Products Segment: |
||||||||||
Three Months Ended March |
Nine Months Ended March |
|||||||||
(In Thousands) |
FY2018 |
FY2017 |
FY2018 |
FY2017 |
||||||
Net Sales |
$ 245,169 |
$ 233,510 |
$ 653,845 |
$ 575,007 |
||||||
Gross Profit as Reported |
$ 32,773 |
$ 34,946 |
$ 105,570 |
$ 91,075 |
||||||
Business Optimization |
971 |
– |
2,493 |
– |
||||||
Adjusted Gross Profit |
$ 33,744 |
$ 34,946 |
$ 108,063 |
$ 91,075 |
||||||
Gross Profit % as Reported |
13.4% |
15.0% |
16.1% |
15.8% |
||||||
Adjusted Gross Profit % |
13.8% |
15.0% |
16.5% |
15.8% |
||||||
Segment Income as Reported |
$ 2,392 |
$ 5,614 |
$ 14,356 |
$ 9,177 |
||||||
Business Optimization |
1,309 |
– |
5,259 |
– |
||||||
Adjusted Segment Income |
$ 3,701 |
$ 5,614 |
$ 19,615 |
$ 9,177 |
||||||
Segment Income % as Reported |
1.0% |
2.4% |
2.2% |
1.6% |
||||||
Adjusted Segment Income % |
1.5% |
2.4% |
3.0% |
1.6% |
Third Quarter Highlights
Non-GAAP Financial Measures
Briggs & Stratton Corporation prepares its financial statements using Generally Accepted Accounting Principles (GAAP). When a company discloses material information containing non-GAAP financial measures, SEC regulations require that the disclosure include a presentation of the most directly comparable GAAP measure and a reconciliation of the GAAP and non-GAAP financial measures. Management’s inclusion of non-GAAP financial measures in this release is intended to supplement, not replace, the presentation of the financial results in accordance with GAAP. Briggs & Stratton Corporation management believes that these non-GAAP financial measures, when considered together with the GAAP financial measures, provide information that is useful to investors in understanding period-over-period operating results separate and apart from items that may, or could, have a disproportionately positive or negative impact on results in any particular period. Management also believes that these non-GAAP financial measures enhance the ability of investors to analyze the company’s business trends and to understand the company’s performance. In addition, management may utilize non-GAAP financial measures as a guide in the company’s forecasting, budgeting and long-term planning process. Non-GAAP financial measures should be considered in addition to, and not as a substitute for, or superior to, financial measures presented in accordance with GAAP. The following tables are reconciliations of the non-GAAP financial measures:
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES |
|||||||||||||
Adjusted Segment Information for the Three Month Periods Ended March |
|||||||||||||
(In Thousands, except per share data) |
|||||||||||||
Three Months Ended March |
|||||||||||||
FY2018 |
Adjustments1 |
FY2018 |
FY2017 |
Adjustments |
FY2017 |
||||||||
Gross Profit |
|||||||||||||
Engines |
$ 96,780 |
$ 903 |
$ 97,683 |
$ 98,814 |
$ – |
$ 98,814 |
|||||||
Products |
32,773 |
971 |
33,744 |
34,946 |
– |
34,946 |
|||||||
Inter-Segment Eliminations |
720 |
– |
720 |
1,011 |
– |
1,011 |
|||||||
Total |
$ 130,273 |
$ 1,874 |
$ 132,147 |
$ 134,771 |
$ – |
$ 134,771 |
|||||||
Engineering, Selling, General and Administrative Expenses |
|||||||||||||
Engines |
$ 48,853 |
$ 587 |
$ 48,266 |
$ 48,450 |
$ – |
$ 48,450 |
|||||||
Products |
31,032 |
338 |
30,694 |
29,829 |
– |
29,829 |
|||||||
Total |
$ 79,885 |
$ 925 |
$ 78,960 |
$ 78,279 |
$ – |
$ 78,279 |
|||||||
Equity in Earnings of |
|||||||||||||
Engines |
$ 62 |
$ 1,406 |
$ 1,468 |
$ 582 |
$ – |
$ 582 |
|||||||
Products |
651 |
– |
651 |
497 |
– |
497 |
|||||||
Total |
$ 713 |
$ 1,406 |
$ 2,119 |
$ 1,079 |
$ – |
$ 1,079 |
|||||||
Segment Income |
|||||||||||||
Engines |
$ 47,989 |
$ 2,896 |
$ 50,885 |
$ 50,946 |
$ – |
$ 50,946 |
|||||||
Products |
2,392 |
1,309 |
3,701 |
5,614 |
– |
5,614 |
|||||||
Inter-Segment Eliminations |
720 |
– |
720 |
1,011 |
– |
1,011 |
|||||||
Total |
$ 51,101 |
$ 4,205 |
$ 55,306 |
$ 57,571 |
$ – |
$ 57,571 |
|||||||
Interest Expense |
$ (8,617) |
$ 2,017 |
(6,600) |
$ (5,521) |
$ – |
$ (5,521) |
|||||||
Income before Income Taxes |
43,563 |
6,222 |
49,785 |
52,894 |
– |
52,894 |
|||||||
Provision for Income Taxes |
11,675 |
1,876 |
13,551 |
17,075 |
– |
17,075 |
|||||||
Net Income |
$ 31,888 |
$ 4,346 |
$ 36,234 |
$ 35,819 |
$ – |
$ 35,819 |
|||||||
Earnings Per Share |
|||||||||||||
Basic |
$ 0.74 |
$ 0.10 |
$ 0.84 |
$ 0.83 |
$ – |
$ 0.83 |
|||||||
Diluted |
0.74 |
0.10 |
0.84 |
0.83 |
– |
0.83 |
|||||||
1 |
For the third quarter of fiscal 2018, business optimization expenses include $0.9 million ($0.6 million after tax) of non-cash charges related primarily to plant & equipment impairment and accelerated depreciation, and $3.3 million ($2.9 million after tax) of cash charges related primarily to employee termination benefits, lease terminations, professional services and plant rearrangement activities. Tax expense also includes a $0.7 million benefit to revalue deferred tax assets and liabilities under the Tax Cuts and Jobs Act of 2017. The company recognized in interest expense $2.0 million ($1.5 million after tax) for premiums paid to repurchase senior notes after receiving unsolicited offers from bondholders. |
BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES |
|||||||||||||
Adjusted Segment Information for the Nine Month Periods Ended March |
|||||||||||||
(In Thousands, except per share data) |
|||||||||||||
Nine Months Ended March |
|||||||||||||
FY2018 |
Adjustments1 |
FY2018 |
FY2017 |
Adjustments |
FY2017 |
||||||||
Gross Profit |
|||||||||||||
Engines |
$ 183,428 |
$ 2,031 |
$ 185,459 |
$ 191,373 |
$ – |
$ 191,373 |
|||||||
Products |
105,570 |
2,493 |
108,063 |
91,075 |
– |
91,075 |
|||||||
Inter-Segment Eliminations |
405 |
– |
405 |
251 |
– |
251 |
|||||||
Total |
$ 289,403 |
$ 4,524 |
$ 293,927 |
$ 282,699 |
$ – |
$ 282,699 |
|||||||
Engineering, Selling, General and Administrative Expenses |
|||||||||||||
Engines |
$ 150,340 |
$ 2,582 |
$ 147,758 |
$ 138,610 |
$ – |
$ 138,610 |
|||||||
Products |
94,150 |
2,766 |
91,384 |
84,763 |
– |
84,763 |
|||||||
Total |
$ 244,490 |
$ 5,348 |
$ 239,142 |
$ 223,373 |
$ – |
$ 223,373 |
|||||||
Equity in Earnings of |
|||||||||||||
Engines |
$ 3,502 |
$ 2,630 |
$ 6,132 |
$ 4,453 |
$ – |
$ 4,453 |
|||||||
Products |
2,936 |
– |
2,936 |
2,865 |
– |
2,865 |
|||||||
Total |
$ 6,438 |
$ 2,630 |
$ 9,068 |
$ 7,318 |
$ – |
$ 7,318 |
|||||||
Segment Income |
|||||||||||||
Engines |
$ 36,590 |
$ 7,243 |
$ 43,833 |
$ 57,216 |
$ – |
$ 57,216 |
|||||||
Products |
14,356 |
5,259 |
19,615 |
9,177 |
– |
9,177 |
|||||||
Inter-Segment Eliminations |
405 |
– |
405 |
251 |
– |
251 |
|||||||
Total |
$ 51,351 |
$ 12,502 |
$ 63,853 |
$ 66,644 |
$ – |
$ 66,644 |
|||||||
Interest Expense |
$ (19,167) |
$ 2,017 |
$ (17,150) |
$ (15,159) |
$ – |
$ (15,159) |
|||||||
Income before Income Taxes |
34,667 |
14,519 |
49,186 |
53,164 |
– |
53,164 |
|||||||
Provision for Income Taxes |
34,163 |
(21,104) |
13,059 |
16,242 |
– |
16,242 |
|||||||
Net Income |
$ 504 |
$ 35,623 |
$ 36,127 |
$ 36,922 |
$ – |
$ 36,922 |
|||||||
Earnings Per Share |
|||||||||||||
Basic |
$ 0.00 |
$ 0.84 |
$ 0.84 |
$ 0.86 |
$ – |
$ 0.86 |
|||||||
Diluted |
0.00 |
0.83 |
0.83 |
0.86 |
– |
0.86 |
|||||||
1 |
For the first nine months of fiscal 2018, business optimization expenses include $3.8 million ($2.8 million after tax) of non-cash charges related primarily to plant & equipment impairment and accelerated depreciation, and $8.6 million ($7.1 million after tax) of cash charges related primarily to employee termination benefits, lease terminations, professional services and plant rearrangement activities. Tax expense also includes a $24.2 million charge associated with the Tax Cuts and Jobs Act of 2017 comprised of $17.7 million to revalue deferred tax assets and liabilities and $6.5 million to record the impact of the inclusion of foreign earnings. The company recognized in interest expense $2.0 million ($1.5 million after tax) for premiums paid to repurchase senior notes after receiving unsolicited offers from bondholders. |