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(Mark One)
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the quarterly period ended February 28, 2019.
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OR
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o
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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For the transition period from to .
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Delaware
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58-2632672
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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1170 Peachtree Street, N.E., Suite 2300, Atlanta, Georgia
(Address of principal executive offices)
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30309-7676
(Zip Code)
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Large accelerated filer þ
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Accelerated filer o
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Non-accelerated filer o
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Smaller reporting company o
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Emerging growth company o
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Page No.
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Item 1.
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Financial Statements
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February 28, 2019
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August 31, 2018
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||||
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(unaudited)
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||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
|
|
||
Cash and cash equivalents
|
$
|
232.0
|
|
|
$
|
129.1
|
|
Accounts receivable, less reserve for doubtful accounts of $1.4 and $1.3, respectively
|
520.1
|
|
|
637.9
|
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||
Inventories
|
413.0
|
|
|
411.8
|
|
||
Prepayments and other current assets
|
67.5
|
|
|
32.3
|
|
||
Total current assets
|
1,232.6
|
|
|
1,211.1
|
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||
Property, plant, and equipment, at cost:
|
|
|
|
|
|
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Land
|
22.8
|
|
|
22.9
|
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||
Buildings and leasehold improvements
|
188.7
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|
|
189.1
|
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||
Machinery and equipment
|
537.0
|
|
|
516.6
|
|
||
Total property, plant, and equipment
|
748.5
|
|
|
728.6
|
|
||
Less — Accumulated depreciation and amortization
|
(464.3
|
)
|
|
(441.9
|
)
|
||
Property, plant, and equipment, net
|
284.2
|
|
|
286.7
|
|
||
Goodwill
|
968.5
|
|
|
970.6
|
|
||
Intangible assets, net
|
482.4
|
|
|
498.7
|
|
||
Deferred income taxes
|
2.9
|
|
|
2.9
|
|
||
Other long-term assets
|
21.2
|
|
|
18.8
|
|
||
Total assets
|
$
|
2,991.8
|
|
|
$
|
2,988.8
|
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LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
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|
||||
Current liabilities:
|
|
|
|
|
|
||
Accounts payable
|
$
|
351.1
|
|
|
$
|
451.1
|
|
Current maturities of long-term debt
|
7.0
|
|
|
0.4
|
|
||
Accrued compensation
|
61.0
|
|
|
67.0
|
|
||
Other accrued liabilities
|
165.3
|
|
|
164.2
|
|
||
Total current liabilities
|
584.4
|
|
|
682.7
|
|
||
Long-term debt
|
349.7
|
|
|
356.4
|
|
||
Accrued pension liabilities
|
62.9
|
|
|
64.6
|
|
||
Deferred income taxes
|
89.8
|
|
|
92.5
|
|
||
Self-insurance reserves
|
8.3
|
|
|
7.9
|
|
||
Other long-term liabilities
|
94.9
|
|
|
67.9
|
|
||
Total liabilities
|
1,190.0
|
|
|
1,272.0
|
|
||
Commitments and contingencies (see Commitments and Contingencies footnote)
|
|
|
|
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|
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Stockholders’ equity:
|
|
|
|
|
|
||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.01 par value; 500,000,000 shares authorized; 53,744,644 and 53,667,327 issued, respectively
|
0.5
|
|
|
0.5
|
|
||
Paid-in capital
|
917.5
|
|
|
906.3
|
|
||
Retained earnings
|
2,121.6
|
|
|
1,999.2
|
|
||
Accumulated other comprehensive loss
|
(114.7
|
)
|
|
(114.8
|
)
|
||
Treasury stock, at cost — 14,075,197 and 13,676,689 shares, respectively
|
(1,123.1
|
)
|
|
(1,074.4
|
)
|
||
Total stockholders’ equity
|
1,801.8
|
|
|
1,716.8
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,991.8
|
|
|
$
|
2,988.8
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2019
|
|
February 28, 2018
|
||||||||
Net sales
|
$
|
854.4
|
|
|
$
|
832.1
|
|
|
$
|
1,787.0
|
|
|
$
|
1,674.9
|
|
Cost of products sold
|
520.5
|
|
|
497.6
|
|
|
1,085.6
|
|
|
990.5
|
|
||||
Gross profit
|
333.9
|
|
|
334.5
|
|
|
701.4
|
|
|
684.4
|
|
||||
Selling, distribution, and administrative expenses
|
237.6
|
|
|
244.4
|
|
|
487.7
|
|
|
473.9
|
|
||||
Special charge
|
0.4
|
|
|
0.6
|
|
|
1.4
|
|
|
0.8
|
|
||||
Operating profit
|
95.9
|
|
|
89.5
|
|
|
212.3
|
|
|
209.7
|
|
||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
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|
||||
Interest expense, net
|
8.6
|
|
|
8.0
|
|
|
17.3
|
|
|
16.1
|
|
||||
Miscellaneous expense, net
|
1.1
|
|
|
2.8
|
|
|
2.4
|
|
|
4.0
|
|
||||
Total other expense
|
9.7
|
|
|
10.8
|
|
|
19.7
|
|
|
20.1
|
|
||||
Income before income taxes
|
86.2
|
|
|
78.7
|
|
|
192.6
|
|
|
189.6
|
|
||||
Income tax expense (benefit)
|
19.9
|
|
|
(18.2
|
)
|
|
46.7
|
|
|
21.2
|
|
||||
Net income
|
$
|
66.3
|
|
|
$
|
96.9
|
|
|
$
|
145.9
|
|
|
$
|
168.4
|
|
|
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|
||||
Earnings per share:
|
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|
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|
||||
Basic earnings per share
|
$
|
1.68
|
|
|
$
|
2.34
|
|
|
$
|
3.67
|
|
|
$
|
4.05
|
|
Basic weighted average number of shares outstanding
|
39.5
|
|
|
41.4
|
|
|
39.7
|
|
|
41.6
|
|
||||
Diluted earnings per share
|
$
|
1.67
|
|
|
$
|
2.33
|
|
|
$
|
3.66
|
|
|
$
|
4.04
|
|
Diluted weighted average number of shares outstanding
|
39.6
|
|
|
41.5
|
|
|
39.8
|
|
|
41.7
|
|
||||
Dividends declared per share
|
$
|
0.13
|
|
|
$
|
0.13
|
|
|
$
|
0.26
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income
|
$
|
66.3
|
|
|
$
|
96.9
|
|
|
$
|
145.9
|
|
|
$
|
168.4
|
|
Other comprehensive income (loss) items:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign currency translation adjustments
|
4.9
|
|
|
2.5
|
|
|
(3.9
|
)
|
|
(8.0
|
)
|
||||
Defined benefit plans, net of tax
|
1.4
|
|
|
1.8
|
|
|
4.0
|
|
|
3.4
|
|
||||
Other comprehensive income (loss), net of tax
|
6.3
|
|
|
4.3
|
|
|
0.1
|
|
|
(4.6
|
)
|
||||
Comprehensive income
|
$
|
72.6
|
|
|
$
|
101.2
|
|
|
$
|
146.0
|
|
|
$
|
163.8
|
|
|
Six Months Ended
|
||||||
|
February 28, 2019
|
|
February 28, 2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
145.9
|
|
|
$
|
168.4
|
|
Adjustments to reconcile net income to net cash flows from operating activities:
|
|
|
|
||||
Depreciation and amortization
|
43.3
|
|
|
38.3
|
|
||
Share-based payment expense
|
15.3
|
|
|
16.8
|
|
||
Loss on sale or disposal of property, plant, and equipment
|
0.4
|
|
|
0.1
|
|
||
Deferred income taxes
|
0.4
|
|
|
(32.0
|
)
|
||
Change in assets and liabilities, net of effect of acquisitions, divestitures, and exchange rate changes:
|
|
|
|
||||
Accounts receivable
|
139.6
|
|
|
73.2
|
|
||
Inventories
|
(1.3
|
)
|
|
6.8
|
|
||
Prepayments and other current assets
|
(21.8
|
)
|
|
(9.2
|
)
|
||
Accounts payable
|
(102.6
|
)
|
|
(54.0
|
)
|
||
Other current liabilities
|
(38.9
|
)
|
|
(39.8
|
)
|
||
Other
|
8.0
|
|
|
9.0
|
|
||
Net cash provided by operating activities
|
188.3
|
|
|
177.6
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of property, plant, and equipment
|
(24.9
|
)
|
|
(20.9
|
)
|
||
Acquisition of businesses, net of cash acquired
|
—
|
|
|
(26.4
|
)
|
||
Other investing activities
|
2.9
|
|
|
0.7
|
|
||
Net cash used for investing activities
|
(22.0
|
)
|
|
(46.6
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
Borrowings on credit facility
|
86.5
|
|
|
—
|
|
||
Repayments of borrowings on credit facility
|
(86.5
|
)
|
|
—
|
|
||
Repayments of long-term debt
|
(0.2
|
)
|
|
(0.2
|
)
|
||
Repurchases of common stock
|
(48.7
|
)
|
|
(194.3
|
)
|
||
Proceeds from stock option exercises and other
|
0.3
|
|
|
1.4
|
|
||
Payments of taxes withheld on net settlement of equity awards
|
(4.3
|
)
|
|
(6.7
|
)
|
||
Dividends paid
|
(10.5
|
)
|
|
(10.9
|
)
|
||
Net cash used for financing activities
|
(63.4
|
)
|
|
(210.7
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
(1.6
|
)
|
||
Net change in cash and cash equivalents
|
102.9
|
|
|
(81.3
|
)
|
||
Cash and cash equivalents at beginning of period
|
129.1
|
|
|
311.1
|
|
||
Cash and cash equivalents at end of period
|
$
|
232.0
|
|
|
$
|
229.8
|
|
Supplemental cash flow information:
|
|
|
|
|
|
||
Income taxes paid during the period
|
$
|
63.2
|
|
|
$
|
80.3
|
|
Interest paid during the period
|
$
|
24.5
|
|
|
$
|
23.4
|
|
|
Three Months Ended February 28, 2018
|
|
Six Months Ended February 28, 2018
|
||||||||||||||||||||
|
As Revised
|
|
Previously Reported
|
|
Higher (Lower)
|
|
As Revised
|
|
Previously Reported
|
|
Higher (Lower)
|
||||||||||||
Cost of products sold
|
$
|
497.6
|
|
|
$
|
497.2
|
|
|
$
|
0.4
|
|
|
$
|
990.5
|
|
|
$
|
989.8
|
|
|
$
|
0.7
|
|
Selling, distribution, and administrative expenses
|
244.4
|
|
|
246.3
|
|
|
(1.9
|
)
|
|
473.9
|
|
|
477.7
|
|
|
(3.8
|
)
|
||||||
Miscellaneous expense, net
|
2.8
|
|
|
1.3
|
|
|
1.5
|
|
|
4.0
|
|
|
0.9
|
|
|
3.1
|
|
Consolidated Statement of Comprehensive Income
|
|
Three Months Ended February 28, 2019
|
|
Six Months Ended February 28, 2019
|
||||||||||||||||||||
|
|
As Currently Reported
|
|
Without ASC 606 Adoption
|
|
Higher (Lower)
|
|
As Currently Reported
|
|
Without ASC 606 Adoption
|
|
Higher (Lower)
|
||||||||||||
Net sales
|
|
$
|
854.4
|
|
|
$
|
856.0
|
|
|
$
|
(1.6
|
)
|
|
$
|
1,787.0
|
|
|
$
|
1,791.0
|
|
|
$
|
(4.0
|
)
|
Cost of products sold
|
|
520.5
|
|
|
521.0
|
|
|
(0.5
|
)
|
|
1,085.6
|
|
|
1,087.4
|
|
|
(1.8
|
)
|
||||||
Selling, distribution, and administrative expenses
|
|
237.6
|
|
|
237.5
|
|
|
0.1
|
|
|
487.7
|
|
|
487.5
|
|
|
0.2
|
|
||||||
Operating profit
|
|
95.9
|
|
|
97.1
|
|
|
(1.2
|
)
|
|
212.3
|
|
|
214.7
|
|
|
(2.4
|
)
|
||||||
Income tax expense
|
|
19.9
|
|
|
20.2
|
|
|
(0.3
|
)
|
|
46.7
|
|
|
47.3
|
|
|
(0.6
|
)
|
||||||
Net income
|
|
66.3
|
|
|
67.2
|
|
|
(0.9
|
)
|
|
145.9
|
|
|
147.7
|
|
|
(1.8
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic earnings per share
|
|
$
|
1.68
|
|
|
$
|
1.70
|
|
|
$
|
(0.02
|
)
|
|
$
|
3.67
|
|
|
$
|
3.72
|
|
|
$
|
(0.05
|
)
|
Diluted earnings per share
|
|
1.67
|
|
|
1.69
|
|
|
(0.02
|
)
|
|
3.66
|
|
|
3.71
|
|
|
(0.05
|
)
|
Consolidated Balance Sheet
|
|
February 28, 2019
|
|||||||||
|
|
As Currently Reported
|
|
Without ASC 606 Adoption
|
|
Higher (Lower)
|
|||||
Accounts receivable, net
|
|
$
|
520.1
|
|
|
500.5
|
|
|
$
|
19.6
|
|
Prepayments and other current assets
|
|
67.5
|
|
|
52.3
|
|
|
15.2
|
|
||
Other accrued liabilities
|
|
165.3
|
|
|
130.3
|
|
|
35.0
|
|
||
Deferred income tax liabilities
|
|
89.8
|
|
|
94.6
|
|
|
(4.8
|
)
|
||
Other long-term liabilities
|
|
94.9
|
|
|
75.5
|
|
|
19.4
|
|
||
Retained earnings
|
|
2,121.6
|
|
|
2,136.4
|
|
|
(14.8
|
)
|
|
February 28, 2019
|
|
September 1, 2018
|
||||
Current deferred revenues
|
$
|
4.4
|
|
|
$
|
4.8
|
|
Non-current deferred revenues
|
40.3
|
|
|
35.0
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
February 28, 2019
|
|
February 28, 2019
|
||||
Independent sales network
|
$
|
571.3
|
|
|
$
|
1,221.1
|
|
Direct sales network
|
87.3
|
|
|
186.3
|
|
||
Retail sales
|
73.6
|
|
|
159.1
|
|
||
Corporate accounts
|
75.3
|
|
|
127.4
|
|
||
Other
|
46.9
|
|
|
93.1
|
|
||
Total
|
$
|
854.4
|
|
|
$
|
1,787.0
|
|
|
February 28, 2019
|
|
August 31, 2018
|
||||||||||||
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
Senior unsecured public notes, net of unamortized discount and deferred costs
|
$
|
349.7
|
|
|
$
|
357.0
|
|
|
$
|
349.5
|
|
|
$
|
361.7
|
|
Industrial revenue bond
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
|
4.0
|
|
||||
Bank loans
|
3.0
|
|
|
3.1
|
|
|
3.3
|
|
|
3.3
|
|
|
Six Months Ended
|
||||||
|
February 28, 2019
|
|
February 28, 2018
|
||||
Beginning balance
|
$
|
970.6
|
|
|
$
|
900.9
|
|
Additions from acquired businesses
|
—
|
|
|
13.4
|
|
||
Foreign currency translation adjustments
|
(2.1
|
)
|
|
(2.4
|
)
|
||
Ending balance
|
$
|
968.5
|
|
|
$
|
911.9
|
|
|
February 28, 2019
|
|
August 31, 2018
|
||||
Raw materials, supplies, and work in process (1)
|
$
|
183.8
|
|
|
$
|
196.8
|
|
Finished goods
|
259.5
|
|
|
251.8
|
|
||
Inventories excluding reserves
|
443.3
|
|
|
448.6
|
|
||
Less: Reserves
|
(30.3
|
)
|
|
(36.8
|
)
|
||
Total inventories
|
$
|
413.0
|
|
|
$
|
411.8
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2019
|
|
February 28, 2018
|
||||||||
Net income
|
$
|
66.3
|
|
|
$
|
96.9
|
|
|
$
|
145.9
|
|
|
$
|
168.4
|
|
Basic weighted average shares outstanding
|
39.5
|
|
|
41.4
|
|
|
39.7
|
|
|
41.6
|
|
||||
Common stock equivalents
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Diluted weighted average shares outstanding
|
39.6
|
|
|
41.5
|
|
|
39.8
|
|
|
41.7
|
|
||||
Basic earnings per share
|
$
|
1.68
|
|
|
$
|
2.34
|
|
|
$
|
3.67
|
|
|
$
|
4.05
|
|
Diluted earnings per share
|
$
|
1.67
|
|
|
$
|
2.33
|
|
|
$
|
3.66
|
|
|
$
|
4.04
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2019
|
|
February 28, 2018
|
||||
Stock options
|
314,673
|
|
|
189,428
|
|
|
290,360
|
|
|
176,549
|
|
Restricted stock awards
|
189,683
|
|
|
198,186
|
|
|
194,232
|
|
|
216,746
|
|
|
Common Stock Outstanding
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Shares
|
|
Amount
|
|
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Loss |
|
Treasury
Stock, at cost
|
|
Total
|
|||||||||||||
Balance, August 31, 2018
|
40.0
|
|
|
$
|
0.5
|
|
|
$
|
906.3
|
|
|
$
|
1,999.2
|
|
|
$
|
(114.8
|
)
|
|
$
|
(1,074.4
|
)
|
|
$
|
1,716.8
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
79.6
|
|
|
—
|
|
|
—
|
|
|
79.6
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.2
|
)
|
|
—
|
|
|
(6.2
|
)
|
||||||
ASC 606 adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
(13.0
|
)
|
|
—
|
|
|
—
|
|
|
(13.0
|
)
|
||||||
Amortization, issuance, and cancellations of restricted stock grants
|
0.1
|
|
|
—
|
|
|
3.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.8
|
|
||||||
Employee stock purchase plan issuances
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||||
Cash dividends of $0.13 per share paid on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.2
|
)
|
|
—
|
|
|
—
|
|
|
(5.2
|
)
|
||||||
Repurchases of common stock
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25.0
|
)
|
|
(25.0
|
)
|
||||||
Balance, November 30, 2018
|
39.9
|
|
|
0.5
|
|
|
910.2
|
|
|
2,060.6
|
|
|
(121.0
|
)
|
|
(1,099.4
|
)
|
|
1,750.9
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
66.3
|
|
|
—
|
|
|
—
|
|
|
66.3
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6.3
|
|
|
—
|
|
|
6.3
|
|
||||||
Amortization, issuance, and cancellations of restricted stock grants
|
—
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
||||||
Employee stock purchase plan issuances
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||||
Cash dividends of $0.13 per share paid on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.3
|
)
|
|
—
|
|
|
—
|
|
|
(5.3
|
)
|
||||||
Repurchases of common stock
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(23.7
|
)
|
|
(23.7
|
)
|
||||||
Balance, February 28, 2019
|
39.7
|
|
|
$
|
0.5
|
|
|
$
|
917.5
|
|
|
$
|
2,121.6
|
|
|
$
|
(114.7
|
)
|
|
$
|
(1,123.1
|
)
|
|
$
|
1,801.8
|
|
|
Common Stock Outstanding
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
Shares
|
|
Amount
|
|
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated Other
Comprehensive Loss |
|
Treasury
Stock, at cost
|
|
Total
|
|||||||||||||
Balance, August 31, 2017
|
41.8
|
|
|
$
|
0.5
|
|
|
$
|
881.0
|
|
|
$
|
1,659.9
|
|
|
$
|
(99.7
|
)
|
|
$
|
(776.1
|
)
|
|
$
|
1,665.6
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
71.5
|
|
|
—
|
|
|
—
|
|
|
71.5
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.9
|
)
|
|
—
|
|
|
(8.9
|
)
|
||||||
Amortization, issuance, and cancellations of restricted stock grants
|
0.1
|
|
|
—
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
2.6
|
|
||||||
Employee stock purchase plan issuances
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||||
Cash dividends of $0.13 per share paid on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
||||||
Stock options exercised
|
—
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||||
Balance, November 30, 2017
|
41.9
|
|
|
0.5
|
|
|
884.3
|
|
|
1,725.9
|
|
|
(108.6
|
)
|
|
(776.0
|
)
|
|
1,726.1
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
|
|
96.9
|
|
|
—
|
|
|
—
|
|
|
96.9
|
|
|||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.3
|
|
|
—
|
|
|
4.3
|
|
||||||
Reclassification of stranded tax effects of the TCJA (1)
|
—
|
|
|
—
|
|
|
—
|
|
|
11.1
|
|
|
(11.1
|
)
|
|
—
|
|
|
—
|
|
||||||
Amortization, issuance, and cancellations of restricted stock grants
|
0.1
|
|
|
—
|
|
|
7.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.6
|
|
||||||
Employee stock purchase plan issuances
|
—
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
||||||
Cash dividends of $0.13 per share paid on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.4
|
)
|
|
—
|
|
|
—
|
|
|
(5.4
|
)
|
||||||
Stock options exercised
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.5
|
|
||||||
Repurchases of common stock
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(194.3
|
)
|
|
(194.3
|
)
|
||||||
Balance, February 28, 2018
|
40.8
|
|
|
$
|
0.5
|
|
|
$
|
892.5
|
|
|
$
|
1,828.5
|
|
|
$
|
(115.4
|
)
|
|
$
|
(970.3
|
)
|
|
$
|
1,635.8
|
|
|
Foreign Currency Items
|
|
Defined Benefit Pension Plans
|
|
Accumulated Other Comprehensive Loss Items
|
||||||
Balance at August 31, 2018
|
$
|
(53.9
|
)
|
|
$
|
(60.9
|
)
|
|
$
|
(114.8
|
)
|
Other comprehensive (loss) income before reclassifications
|
(3.9
|
)
|
|
0.9
|
|
|
(3.0
|
)
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
3.1
|
|
|
3.1
|
|
|||
Net current period other comprehensive (loss) income
|
(3.9
|
)
|
|
4.0
|
|
|
0.1
|
|
|||
Balance at February 28, 2019
|
$
|
(57.8
|
)
|
|
$
|
(56.9
|
)
|
|
$
|
(114.7
|
)
|
|
Foreign Currency Items
|
|
Defined Benefit Pension Plans
|
|
Accumulated Other Comprehensive Loss Items
|
||||||
Balance at August 31, 2017
|
$
|
(28.7
|
)
|
|
$
|
(71.0
|
)
|
|
$
|
(99.7
|
)
|
Other comprehensive loss before reclassifications
|
(8.0
|
)
|
|
—
|
|
|
(8.0
|
)
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
3.4
|
|
|
3.4
|
|
|||
Net current period other comprehensive (loss) income
|
(8.0
|
)
|
|
3.4
|
|
|
(4.6
|
)
|
|||
Reclassification of stranded tax effects of TCJA (1)
|
—
|
|
|
(11.1
|
)
|
|
(11.1
|
)
|
|||
Balance at February 28, 2018
|
$
|
(36.7
|
)
|
|
$
|
(78.7
|
)
|
|
$
|
(115.4
|
)
|
|
Three Months Ended
|
||||||||||||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
||||||||||||||||||||
|
Before Tax Amount
|
|
Tax (Expense) Benefit
|
|
Net of Tax Amount
|
|
Before Tax Amount
|
|
Tax (Expense) Benefit
|
|
Net of Tax Amount
|
||||||||||||
Foreign currency translation adjustments
|
$
|
4.9
|
|
|
$
|
—
|
|
|
$
|
4.9
|
|
|
$
|
2.5
|
|
|
$
|
—
|
|
|
$
|
2.5
|
|
Defined benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of defined benefit pension items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Prior service cost
|
0.7
|
|
|
(0.1
|
)
|
|
0.6
|
|
|
0.8
|
|
|
(0.2
|
)
|
|
0.6
|
|
||||||
Actuarial losses
|
1.0
|
|
|
(0.2
|
)
|
|
0.8
|
|
|
1.7
|
|
|
(0.5
|
)
|
|
1.2
|
|
||||||
Total defined benefit pension plans, net
|
1.7
|
|
|
(0.3
|
)
|
|
1.4
|
|
|
2.5
|
|
|
(0.7
|
)
|
|
1.8
|
|
||||||
Other comprehensive loss
|
$
|
6.6
|
|
|
$
|
(0.3
|
)
|
|
$
|
6.3
|
|
|
$
|
5.0
|
|
|
$
|
(0.7
|
)
|
|
$
|
4.3
|
|
|
Six Months Ended
|
||||||||||||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
||||||||||||||||||||
|
Before Tax Amount
|
|
Tax (Expense) Benefit
|
|
Net of Tax Amount
|
|
Before Tax Amount
|
|
Tax (Expense) Benefit
|
|
Net of Tax Amount
|
||||||||||||
Foreign currency translation adjustments
|
$
|
(3.9
|
)
|
|
$
|
—
|
|
|
$
|
(3.9
|
)
|
|
$
|
(8.0
|
)
|
|
$
|
—
|
|
|
$
|
(8.0
|
)
|
Defined benefit pension plans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Actuarial gain or loss
|
1.3
|
|
|
(0.4
|
)
|
|
0.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of defined benefit pension items:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Prior service cost
|
1.5
|
|
|
(0.3
|
)
|
|
1.2
|
|
|
1.6
|
|
|
(0.6
|
)
|
|
1.0
|
|
||||||
Actuarial losses
|
2.1
|
|
|
(0.5
|
)
|
|
1.6
|
|
|
3.4
|
|
|
(1.0
|
)
|
|
2.4
|
|
||||||
Settlement losses
|
0.4
|
|
|
(0.1
|
)
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total defined benefit pension plans, net
|
5.3
|
|
|
(1.3
|
)
|
|
4.0
|
|
|
5.0
|
|
|
(1.6
|
)
|
|
3.4
|
|
||||||
Other comprehensive loss
|
$
|
1.4
|
|
|
$
|
(1.3
|
)
|
|
$
|
0.1
|
|
|
$
|
(3.0
|
)
|
|
$
|
(1.6
|
)
|
|
$
|
(4.6
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2019
|
|
February 28, 2018
|
||||||||
Interest expense
|
$
|
9.1
|
|
|
$
|
8.7
|
|
|
$
|
18.3
|
|
|
$
|
17.4
|
|
Interest income
|
(0.5
|
)
|
|
(0.7
|
)
|
|
(1.0
|
)
|
|
(1.3
|
)
|
||||
Interest expense, net
|
$
|
8.6
|
|
|
$
|
8.0
|
|
|
$
|
17.3
|
|
|
$
|
16.1
|
|
|
Six Months Ended
|
||||||
|
February 28, 2019
|
|
February 28, 2018
|
||||
Beginning balance
|
$
|
27.3
|
|
|
$
|
22.0
|
|
Warranty and recall costs
|
9.6
|
|
|
15.1
|
|
||
Payments and other deductions
|
(9.2
|
)
|
|
(13.1
|
)
|
||
ASC 606 adjustments (1)
|
(14.8
|
)
|
|
—
|
|
||
Ending balance
|
$
|
12.9
|
|
|
$
|
24.0
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2019
|
|
February 28, 2018
|
||||||||
Share-based payment expense
|
$
|
7.5
|
|
|
$
|
8.3
|
|
|
$
|
15.3
|
|
|
$
|
16.8
|
|
Shares issued from option exercises
|
—
|
|
|
3,208
|
|
|
—
|
|
|
9,364
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2019
|
|
February 28, 2018
|
||||||||
Service cost
|
$
|
0.8
|
|
|
$
|
0.7
|
|
|
$
|
1.6
|
|
|
$
|
1.4
|
|
Interest cost
|
2.3
|
|
|
2.2
|
|
|
4.5
|
|
|
4.4
|
|
||||
Expected return on plan assets
|
(3.2
|
)
|
|
(3.1
|
)
|
|
(6.3
|
)
|
|
(6.2
|
)
|
||||
Amortization of prior service cost
|
0.7
|
|
|
0.8
|
|
|
1.5
|
|
|
1.6
|
|
||||
Settlement loss
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
||||
Recognized actuarial loss
|
1.0
|
|
|
1.7
|
|
|
2.1
|
|
|
3.4
|
|
||||
Net periodic pension cost
|
$
|
1.6
|
|
|
$
|
2.3
|
|
|
$
|
3.8
|
|
|
$
|
4.6
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
February 28, 2019
|
|
February 28, 2018
|
||||||||
Severance and employee-related costs
|
$
|
(0.3
|
)
|
|
$
|
0.6
|
|
|
$
|
(0.8
|
)
|
|
$
|
0.8
|
|
Move and other restructuring costs
|
0.7
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
||||
Total special charges
|
$
|
0.4
|
|
|
$
|
0.6
|
|
|
$
|
1.4
|
|
|
$
|
0.8
|
|
|
Fiscal 2018 Actions
|
|
Fiscal 2017 Actions
|
|
Total
|
||||||
Balance at August 31, 2018
|
$
|
9.2
|
|
|
$
|
0.9
|
|
|
10.1
|
|
|
Severance costs
|
(0.4
|
)
|
|
(0.4
|
)
|
|
(0.8
|
)
|
|||
Payments made during the period
|
(4.3
|
)
|
|
(0.4
|
)
|
|
(4.7
|
)
|
|||
Balance at February 28, 2019
|
$
|
4.5
|
|
|
$
|
0.1
|
|
|
$
|
4.6
|
|
|
February 28, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
ASSETS
|
|||||||||||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
152.1
|
|
|
$
|
17.8
|
|
|
$
|
—
|
|
|
$
|
62.1
|
|
|
$
|
—
|
|
|
$
|
232.0
|
|
Accounts receivable, net
|
—
|
|
|
450.9
|
|
|
—
|
|
|
69.2
|
|
|
—
|
|
|
520.1
|
|
||||||
Inventories
|
—
|
|
|
385.4
|
|
|
—
|
|
|
27.6
|
|
|
—
|
|
|
413.0
|
|
||||||
Other current assets
|
20.4
|
|
|
29.9
|
|
|
—
|
|
|
17.2
|
|
|
—
|
|
|
67.5
|
|
||||||
Total current assets
|
172.5
|
|
|
884.0
|
|
|
—
|
|
|
176.1
|
|
|
—
|
|
|
1,232.6
|
|
||||||
Property, plant, and equipment, net
|
0.1
|
|
|
224.6
|
|
|
—
|
|
|
59.5
|
|
|
—
|
|
|
284.2
|
|
||||||
Goodwill
|
—
|
|
|
746.3
|
|
|
2.7
|
|
|
219.5
|
|
|
—
|
|
|
968.5
|
|
||||||
Intangible assets, net
|
—
|
|
|
278.8
|
|
|
105.1
|
|
|
98.5
|
|
|
—
|
|
|
482.4
|
|
||||||
Deferred income taxes
|
36.1
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
|
(39.4
|
)
|
|
2.9
|
|
||||||
Other long-term assets
|
0.3
|
|
|
19.1
|
|
|
—
|
|
|
1.8
|
|
|
—
|
|
|
21.2
|
|
||||||
Investments in and amounts due from affiliates
|
1,698.8
|
|
|
491.4
|
|
|
300.4
|
|
|
—
|
|
|
(2,490.6
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,907.8
|
|
|
$
|
2,644.2
|
|
|
$
|
408.2
|
|
|
$
|
561.6
|
|
|
$
|
(2,530.0
|
)
|
|
$
|
2,991.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
0.7
|
|
|
$
|
325.3
|
|
|
$
|
—
|
|
|
$
|
25.1
|
|
|
$
|
—
|
|
|
$
|
351.1
|
|
Current maturities of long-term debt
|
—
|
|
|
6.6
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
7.0
|
|
||||||
Other accrued liabilities
|
9.3
|
|
|
175.8
|
|
|
—
|
|
|
41.2
|
|
|
—
|
|
|
226.3
|
|
||||||
Total current liabilities
|
10.0
|
|
|
507.7
|
|
|
—
|
|
|
66.7
|
|
|
—
|
|
|
584.4
|
|
||||||
Long-term debt
|
—
|
|
|
347.1
|
|
|
—
|
|
|
2.6
|
|
|
—
|
|
|
349.7
|
|
||||||
Deferred income taxes
|
—
|
|
|
103.5
|
|
|
—
|
|
|
25.7
|
|
|
(39.4
|
)
|
|
89.8
|
|
||||||
Other long-term liabilities
|
96.0
|
|
|
55.5
|
|
|
—
|
|
|
14.6
|
|
|
—
|
|
|
166.1
|
|
||||||
Amounts due to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
131.3
|
|
|
(131.3
|
)
|
|
—
|
|
||||||
Total stockholders’ equity
|
1,801.8
|
|
|
1,630.4
|
|
|
408.2
|
|
|
320.7
|
|
|
(2,359.3
|
)
|
|
1,801.8
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,907.8
|
|
|
$
|
2,644.2
|
|
|
$
|
408.2
|
|
|
$
|
561.6
|
|
|
$
|
(2,530.0
|
)
|
|
$
|
2,991.8
|
|
|
August 31, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
ASSETS
|
|||||||||||||||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
80.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
48.6
|
|
|
$
|
—
|
|
|
$
|
129.1
|
|
Accounts receivable, net
|
—
|
|
|
560.7
|
|
|
—
|
|
|
77.2
|
|
|
—
|
|
|
637.9
|
|
||||||
Inventories
|
—
|
|
|
386.6
|
|
|
—
|
|
|
25.2
|
|
|
—
|
|
|
411.8
|
|
||||||
Other current assets
|
2.3
|
|
|
18.6
|
|
|
—
|
|
|
11.4
|
|
|
—
|
|
|
32.3
|
|
||||||
Total current assets
|
82.8
|
|
|
965.9
|
|
|
—
|
|
|
162.4
|
|
|
—
|
|
|
1,211.1
|
|
||||||
Property, plant, and equipment, net
|
0.2
|
|
|
226.8
|
|
|
—
|
|
|
59.7
|
|
|
—
|
|
|
286.7
|
|
||||||
Goodwill
|
—
|
|
|
746.5
|
|
|
2.7
|
|
|
221.4
|
|
|
—
|
|
|
970.6
|
|
||||||
Intangible assets, net
|
—
|
|
|
286.6
|
|
|
106.5
|
|
|
105.6
|
|
|
—
|
|
|
498.7
|
|
||||||
Deferred income taxes
|
36.4
|
|
|
—
|
|
|
—
|
|
|
6.2
|
|
|
(39.7
|
)
|
|
2.9
|
|
||||||
Other long-term assets
|
1.2
|
|
|
15.6
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
|
18.8
|
|
||||||
Investments in and amounts due from affiliates
|
1,707.0
|
|
|
370.6
|
|
|
279.5
|
|
|
—
|
|
|
(2,357.1
|
)
|
|
—
|
|
||||||
Total assets
|
$
|
1,827.6
|
|
|
$
|
2,612.0
|
|
|
$
|
388.7
|
|
|
$
|
557.3
|
|
|
$
|
(2,396.8
|
)
|
|
$
|
2,988.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Accounts payable
|
$
|
0.3
|
|
|
$
|
420.7
|
|
|
$
|
—
|
|
|
$
|
30.1
|
|
|
$
|
—
|
|
|
$
|
451.1
|
|
Current maturities of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
||||||
Other accrued liabilities
|
18.8
|
|
|
170.1
|
|
|
—
|
|
|
42.3
|
|
|
—
|
|
|
231.2
|
|
||||||
Total current liabilities
|
19.1
|
|
|
590.8
|
|
|
—
|
|
|
72.8
|
|
|
—
|
|
|
682.7
|
|
||||||
Long-term debt
|
—
|
|
|
353.5
|
|
|
—
|
|
|
2.9
|
|
|
—
|
|
|
356.4
|
|
||||||
Deferred income taxes
|
—
|
|
|
106.5
|
|
|
—
|
|
|
25.7
|
|
|
(39.7
|
)
|
|
92.5
|
|
||||||
Other long-term liabilities
|
91.7
|
|
|
34.0
|
|
|
—
|
|
|
14.7
|
|
|
—
|
|
|
140.4
|
|
||||||
Amounts due to affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
138.8
|
|
|
(138.8
|
)
|
|
—
|
|
||||||
Total stockholders’ equity
|
1,716.8
|
|
|
1,527.2
|
|
|
388.7
|
|
|
302.4
|
|
|
(2,218.3
|
)
|
|
1,716.8
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
1,827.6
|
|
|
$
|
2,612.0
|
|
|
$
|
388.7
|
|
|
$
|
557.3
|
|
|
$
|
(2,396.8
|
)
|
|
$
|
2,988.8
|
|
|
Three Months Ended February 28, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External sales
|
$
|
—
|
|
|
$
|
756.6
|
|
|
$
|
—
|
|
|
$
|
97.8
|
|
|
$
|
—
|
|
|
$
|
854.4
|
|
Intercompany sales
|
—
|
|
|
—
|
|
|
12.6
|
|
|
50.0
|
|
|
(62.6
|
)
|
|
—
|
|
||||||
Total sales
|
—
|
|
|
756.6
|
|
|
12.6
|
|
|
147.8
|
|
|
(62.6
|
)
|
|
854.4
|
|
||||||
Cost of products sold
|
—
|
|
|
466.6
|
|
|
—
|
|
|
103.3
|
|
|
(49.4
|
)
|
|
520.5
|
|
||||||
Gross profit
|
—
|
|
|
290.0
|
|
|
12.6
|
|
|
44.5
|
|
|
(13.2
|
)
|
|
333.9
|
|
||||||
Selling, distribution, and administrative expenses
|
10.8
|
|
|
202.1
|
|
|
0.7
|
|
|
37.2
|
|
|
(13.2
|
)
|
|
237.6
|
|
||||||
Intercompany charges
|
(0.9
|
)
|
|
—
|
|
|
—
|
|
|
0.9
|
|
|
—
|
|
|
—
|
|
||||||
Special charge
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
||||||
Operating (loss) profit
|
(9.9
|
)
|
|
87.5
|
|
|
11.9
|
|
|
6.4
|
|
|
—
|
|
|
95.9
|
|
||||||
Interest expense, net
|
3.0
|
|
|
4.4
|
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
8.6
|
|
||||||
Equity earnings in subsidiaries
|
(77.3
|
)
|
|
(8.7
|
)
|
|
—
|
|
|
—
|
|
|
86.0
|
|
|
—
|
|
||||||
Miscellaneous expense (income), net
|
1.5
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
1.1
|
|
||||||
Income before income taxes
|
62.9
|
|
|
91.9
|
|
|
11.9
|
|
|
5.5
|
|
|
(86.0
|
)
|
|
86.2
|
|
||||||
Income tax (benefit) expense
|
(3.4
|
)
|
|
19.3
|
|
|
2.5
|
|
|
1.5
|
|
|
—
|
|
|
19.9
|
|
||||||
Net income
|
66.3
|
|
|
72.6
|
|
|
9.4
|
|
|
4.0
|
|
|
(86.0
|
)
|
|
66.3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss) items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
4.9
|
|
|
4.9
|
|
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
|
4.9
|
|
||||||
Defined benefit plans, net of tax
|
1.4
|
|
|
1.1
|
|
|
—
|
|
|
0.3
|
|
|
(1.4
|
)
|
|
1.4
|
|
||||||
Other comprehensive income items, net of tax
|
6.3
|
|
|
6.0
|
|
|
—
|
|
|
0.3
|
|
|
(6.3
|
)
|
|
6.3
|
|
||||||
Comprehensive income
|
$
|
72.6
|
|
|
$
|
78.6
|
|
|
$
|
9.4
|
|
|
$
|
4.3
|
|
|
$
|
(92.3
|
)
|
|
$
|
72.6
|
|
|
Three Months Ended February 28, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External sales
|
$
|
—
|
|
|
$
|
740.4
|
|
|
$
|
—
|
|
|
$
|
91.7
|
|
|
$
|
—
|
|
|
$
|
832.1
|
|
Intercompany sales
|
—
|
|
|
—
|
|
|
12.5
|
|
|
41.2
|
|
|
(53.7
|
)
|
|
—
|
|
||||||
Total sales
|
—
|
|
|
740.4
|
|
|
12.5
|
|
|
132.9
|
|
|
(53.7
|
)
|
|
832.1
|
|
||||||
Cost of products sold
|
—
|
|
|
441.0
|
|
|
—
|
|
|
95.3
|
|
|
(38.7
|
)
|
|
497.6
|
|
||||||
Gross profit
|
—
|
|
|
299.4
|
|
|
12.5
|
|
|
37.6
|
|
|
(15.0
|
)
|
|
334.5
|
|
||||||
Selling, distribution, and administrative expenses
|
9.6
|
|
|
211.8
|
|
|
0.8
|
|
|
37.2
|
|
|
(15.0
|
)
|
|
244.4
|
|
||||||
Intercompany charges
|
(0.8
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
1.2
|
|
|
—
|
|
|
—
|
|
||||||
Special charge
|
—
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.6
|
|
||||||
Operating (loss) profit
|
(8.8
|
)
|
|
87.4
|
|
|
11.7
|
|
|
(0.8
|
)
|
|
—
|
|
|
89.5
|
|
||||||
Interest expense, net
|
2.6
|
|
|
4.0
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
|
8.0
|
|
||||||
Equity earnings in subsidiaries
|
(106.2
|
)
|
|
(1.0
|
)
|
|
—
|
|
|
0.1
|
|
|
107.1
|
|
|
—
|
|
||||||
Miscellaneous expense, net
|
1.6
|
|
|
0.8
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
2.8
|
|
||||||
Income (loss) before income taxes
|
93.2
|
|
|
83.6
|
|
|
11.7
|
|
|
(2.7
|
)
|
|
(107.1
|
)
|
|
78.7
|
|
||||||
Income tax (benefit) expense
|
(3.5
|
)
|
|
(15.0
|
)
|
|
0.9
|
|
|
(0.6
|
)
|
|
—
|
|
|
(18.2
|
)
|
||||||
Net income (loss)
|
96.7
|
|
|
98.6
|
|
|
10.8
|
|
|
(2.1
|
)
|
|
(107.1
|
)
|
|
96.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss) items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
2.5
|
|
|
2.5
|
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
2.5
|
|
||||||
Defined benefit plans, net of tax
|
1.8
|
|
|
1.3
|
|
|
—
|
|
|
0.5
|
|
|
(1.8
|
)
|
|
1.8
|
|
||||||
Other comprehensive income items, net of tax
|
4.3
|
|
|
3.8
|
|
|
—
|
|
|
0.5
|
|
|
(4.3
|
)
|
|
4.3
|
|
||||||
Comprehensive income (loss)
|
$
|
101.0
|
|
|
$
|
102.4
|
|
|
$
|
10.8
|
|
|
$
|
(1.6
|
)
|
|
$
|
(111.4
|
)
|
|
$
|
101.2
|
|
|
Six Months Ended February 28, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External sales
|
$
|
—
|
|
|
$
|
1,585.5
|
|
|
$
|
—
|
|
|
$
|
201.5
|
|
|
$
|
—
|
|
|
$
|
1,787.0
|
|
Intercompany sales
|
—
|
|
|
—
|
|
|
26.3
|
|
|
103.0
|
|
|
(129.3
|
)
|
|
—
|
|
||||||
Total sales
|
—
|
|
|
1,585.5
|
|
|
26.3
|
|
|
304.5
|
|
|
(129.3
|
)
|
|
1,787.0
|
|
||||||
Cost of products sold
|
—
|
|
|
967.1
|
|
|
—
|
|
|
219.6
|
|
|
(101.1
|
)
|
|
1,085.6
|
|
||||||
Gross profit
|
—
|
|
|
618.4
|
|
|
26.3
|
|
|
84.9
|
|
|
(28.2
|
)
|
|
701.4
|
|
||||||
Selling, distribution, and administrative expenses
|
19.7
|
|
|
419.8
|
|
|
1.4
|
|
|
75.0
|
|
|
(28.2
|
)
|
|
487.7
|
|
||||||
Intercompany charges
|
(2.2
|
)
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
||||||
Special charge
|
—
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
||||||
Operating (loss) profit
|
(17.5
|
)
|
|
197.2
|
|
|
24.9
|
|
|
7.7
|
|
|
—
|
|
|
212.3
|
|
||||||
Interest expense, net
|
6.1
|
|
|
8.8
|
|
|
—
|
|
|
2.4
|
|
|
—
|
|
|
17.3
|
|
||||||
Equity earnings in subsidiaries
|
(166.4
|
)
|
|
(12.0
|
)
|
|
—
|
|
|
0.1
|
|
|
178.3
|
|
|
—
|
|
||||||
Miscellaneous expense (income), net
|
3.4
|
|
|
(0.7
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
2.4
|
|
||||||
Income before income taxes
|
139.4
|
|
|
201.1
|
|
|
24.9
|
|
|
5.5
|
|
|
(178.3
|
)
|
|
192.6
|
|
||||||
Income tax (benefit) expense
|
(6.4
|
)
|
|
45.9
|
|
|
5.2
|
|
|
2.0
|
|
|
—
|
|
|
46.7
|
|
||||||
Net income
|
145.8
|
|
|
155.2
|
|
|
19.7
|
|
|
3.5
|
|
|
(178.3
|
)
|
|
145.9
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss) items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(3.9
|
)
|
|
(3.9
|
)
|
|
—
|
|
|
—
|
|
|
3.9
|
|
|
(3.9
|
)
|
||||||
Defined benefit plans, net of tax
|
4.0
|
|
|
2.3
|
|
|
—
|
|
|
0.6
|
|
|
(2.9
|
)
|
|
4.0
|
|
||||||
Other comprehensive income (loss) items, net of tax
|
0.1
|
|
|
(1.6
|
)
|
|
—
|
|
|
0.6
|
|
|
1.0
|
|
|
0.1
|
|
||||||
Comprehensive income
|
$
|
145.9
|
|
|
$
|
153.6
|
|
|
$
|
19.7
|
|
|
$
|
4.1
|
|
|
$
|
(177.3
|
)
|
|
$
|
146.0
|
|
|
Six Months Ended February 28, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
External sales
|
$
|
—
|
|
|
$
|
1,484.6
|
|
|
$
|
—
|
|
|
$
|
190.3
|
|
|
$
|
—
|
|
|
$
|
1,674.9
|
|
Intercompany sales
|
—
|
|
|
—
|
|
|
24.5
|
|
|
84.7
|
|
|
(109.2
|
)
|
|
—
|
|
||||||
Total sales
|
—
|
|
|
1,484.6
|
|
|
24.5
|
|
|
275.0
|
|
|
(109.2
|
)
|
|
1,674.9
|
|
||||||
Cost of products sold
|
—
|
|
|
871.1
|
|
|
—
|
|
|
200.2
|
|
|
(80.8
|
)
|
|
990.5
|
|
||||||
Gross profit
|
—
|
|
|
613.5
|
|
|
24.5
|
|
|
74.8
|
|
|
(28.4
|
)
|
|
684.4
|
|
||||||
Selling, distribution, and administrative expenses
|
20.2
|
|
|
406.5
|
|
|
1.6
|
|
|
74.0
|
|
|
(28.4
|
)
|
|
473.9
|
|
||||||
Intercompany charges
|
(1.9
|
)
|
|
(0.8
|
)
|
|
—
|
|
|
2.7
|
|
|
—
|
|
|
—
|
|
||||||
Special charge
|
—
|
|
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
||||||
Operating (loss) profit
|
(18.3
|
)
|
|
207.0
|
|
|
22.9
|
|
|
(1.9
|
)
|
|
—
|
|
|
209.7
|
|
||||||
Interest expense, net
|
5.3
|
|
|
8.0
|
|
|
—
|
|
|
2.8
|
|
|
—
|
|
|
16.1
|
|
||||||
Equity earnings in subsidiaries
|
(187.1
|
)
|
|
(2.1
|
)
|
|
—
|
|
|
0.1
|
|
|
189.1
|
|
|
—
|
|
||||||
Miscellaneous expense (income), net
|
3.2
|
|
|
1.3
|
|
|
—
|
|
|
(0.5
|
)
|
|
—
|
|
|
4.0
|
|
||||||
Income (loss) before income taxes
|
160.3
|
|
|
199.8
|
|
|
22.9
|
|
|
(4.3
|
)
|
|
(189.1
|
)
|
|
189.6
|
|
||||||
Income tax (benefit) expense
|
(8.5
|
)
|
|
27.2
|
|
|
3.0
|
|
|
(0.5
|
)
|
|
—
|
|
|
21.2
|
|
||||||
Net income (loss)
|
168.8
|
|
|
172.6
|
|
|
19.9
|
|
|
(3.8
|
)
|
|
(189.1
|
)
|
|
168.4
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other comprehensive income (loss) items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
(8.0
|
)
|
|
(8.0
|
)
|
|
—
|
|
|
—
|
|
|
8.0
|
|
|
(8.0
|
)
|
||||||
Defined benefit plans, net of tax
|
3.4
|
|
|
2.5
|
|
|
—
|
|
|
0.9
|
|
|
(3.4
|
)
|
|
3.4
|
|
||||||
Other comprehensive (loss) income items, net of tax
|
(4.6
|
)
|
|
(5.5
|
)
|
|
—
|
|
|
0.9
|
|
|
4.6
|
|
|
(4.6
|
)
|
||||||
Comprehensive income (loss)
|
$
|
164.2
|
|
|
$
|
167.1
|
|
|
$
|
19.9
|
|
|
$
|
(2.9
|
)
|
|
$
|
(184.5
|
)
|
|
$
|
163.8
|
|
|
Six Months Ended February 28, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
133.8
|
|
|
$
|
35.9
|
|
|
$
|
—
|
|
|
$
|
18.6
|
|
|
$
|
—
|
|
|
$
|
188.3
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Purchases of property, plant, and equipment
|
—
|
|
|
(20.2
|
)
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
(24.9
|
)
|
||||||
Other investing activities
|
0.8
|
|
|
2.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.9
|
|
||||||
Net cash provided by (used for) investing activities
|
0.8
|
|
|
(18.1
|
)
|
|
—
|
|
|
(4.7
|
)
|
|
—
|
|
|
(22.0
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Borrowings on credit facility
|
—
|
|
|
86.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
86.5
|
|
||||||
Repayments of borrowings on credit facility
|
—
|
|
|
(86.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(86.5
|
)
|
||||||
Repayments of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Proceeds from stock option exercises and other
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
||||||
Repurchases of common stock
|
(48.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48.7
|
)
|
||||||
Withholding taxes on net settlement of equity awards
|
(4.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.3
|
)
|
||||||
Dividends paid
|
(10.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.5
|
)
|
||||||
Net cash used for financing activities
|
(63.2
|
)
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(63.4
|
)
|
||||||
Effect of exchange rates changes on cash
|
0.2
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
||||||
Net change in cash and cash equivalents
|
71.6
|
|
|
17.8
|
|
|
—
|
|
|
13.5
|
|
|
—
|
|
|
102.9
|
|
||||||
Cash and cash equivalents at beginning of period
|
80.5
|
|
|
—
|
|
|
—
|
|
|
48.6
|
|
|
—
|
|
|
129.1
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
152.1
|
|
|
$
|
17.8
|
|
|
$
|
—
|
|
|
$
|
62.1
|
|
|
$
|
—
|
|
|
$
|
232.0
|
|
|
Six Months Ended February 28, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
Issuer
|
|
Subsidiary
Guarantor
|
|
Non-
Guarantors
|
|
Consolidating Adjustments
|
|
Consolidated
|
||||||||||||
Net cash provided by operating activities
|
$
|
141.1
|
|
|
$
|
14.4
|
|
|
$
|
—
|
|
|
$
|
22.1
|
|
|
$
|
—
|
|
|
$
|
177.6
|
|
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Purchases of property, plant, and equipment
|
—
|
|
|
(15.2
|
)
|
|
—
|
|
|
(5.7
|
)
|
|
—
|
|
|
(20.9
|
)
|
||||||
Investments in subsidiaries
|
(26.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|
—
|
|
||||||
Acquisitions of business, net of cash acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
(26.4
|
)
|
|
—
|
|
|
(26.4
|
)
|
||||||
Other investing activities
|
0.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
||||||
Net cash used for investing activities
|
(25.7
|
)
|
|
(15.2
|
)
|
|
—
|
|
|
(32.1
|
)
|
|
26.4
|
|
|
(46.6
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Repayments of long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.2
|
)
|
||||||
Proceeds from stock option exercises and other
|
1.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
||||||
Repurchases of common stock
|
(194.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(194.3
|
)
|
||||||
Withholding taxes on net settlement of equity awards
|
(6.7
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.7
|
)
|
||||||
Intercompany capital
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|
(26.4
|
)
|
|
—
|
|
||||||
Dividends paid
|
(10.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.9
|
)
|
||||||
Net cash (used for) provided by financing activities
|
(210.5
|
)
|
|
—
|
|
|
—
|
|
|
26.2
|
|
|
(26.4
|
)
|
|
(210.7
|
)
|
||||||
Effect of exchange rate changes on cash
|
—
|
|
|
0.8
|
|
|
—
|
|
|
(2.4
|
)
|
|
—
|
|
|
(1.6
|
)
|
||||||
Net change in cash and cash equivalents
|
(95.1
|
)
|
|
—
|
|
|
—
|
|
|
13.8
|
|
|
—
|
|
|
(81.3
|
)
|
||||||
Cash and cash equivalents at beginning of period
|
237.7
|
|
|
—
|
|
|
—
|
|
|
73.4
|
|
|
—
|
|
|
311.1
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
142.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
87.2
|
|
|
$
|
—
|
|
|
$
|
229.8
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
|
|
|
|
|||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
Increase (Decrease)
|
|
Percent Change
|
|||||||
Net sales
|
$
|
854.4
|
|
|
$
|
832.1
|
|
|
$
|
22.3
|
|
|
2.7
|
%
|
Cost of products sold
|
520.5
|
|
|
497.6
|
|
|
22.9
|
|
|
4.6
|
%
|
|||
Gross profit
|
333.9
|
|
|
334.5
|
|
|
(0.6
|
)
|
|
(0.2
|
)%
|
|||
Percent of net sales
|
39.1
|
%
|
|
40.2
|
%
|
|
(110
|
)
|
bps
|
|
|
|||
Selling, distribution, and administrative expenses
|
237.6
|
|
|
244.4
|
|
|
(6.8
|
)
|
|
(2.8
|
)%
|
|||
Special charge
|
0.4
|
|
|
0.6
|
|
|
(0.2
|
)
|
|
NM
|
|
|||
Operating profit
|
95.9
|
|
|
89.5
|
|
|
6.4
|
|
|
7.2
|
%
|
|||
Percent of net sales
|
11.2
|
%
|
|
10.8
|
%
|
|
40
|
|
bps
|
|
|
|||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense, net
|
8.6
|
|
|
8.0
|
|
|
0.6
|
|
|
7.5
|
%
|
|||
Miscellaneous expense, net
|
1.1
|
|
|
2.8
|
|
|
(1.7
|
)
|
|
NM
|
|
|||
Total other expense
|
9.7
|
|
|
10.8
|
|
|
(1.1
|
)
|
|
NM
|
|
|||
Income before income taxes
|
86.2
|
|
|
78.7
|
|
|
7.5
|
|
|
9.5
|
%
|
|||
Percent of net sales
|
10.1
|
%
|
|
9.5
|
%
|
|
60
|
|
bps
|
|
|
|||
Income tax expense (benefit)
|
19.9
|
|
|
(18.2
|
)
|
|
38.1
|
|
|
NM
|
|
|||
Effective tax rate
|
23.1
|
%
|
|
(23.1
|
)%
|
|
|
|
|
|
|
|||
Net income
|
$
|
66.3
|
|
|
$
|
96.9
|
|
|
$
|
(30.6
|
)
|
|
(31.6
|
)%
|
Diluted earnings per share
|
$
|
1.67
|
|
|
$
|
2.33
|
|
|
$
|
(0.66
|
)
|
|
(28.3
|
)%
|
NM - not meaningful
|
|
|
|
|
|
|
|
(In millions, except per share data)
|
Three Months Ended
|
|
|
|
|||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
Increase (Decrease)
|
Percent Change
|
|||||||
Gross profit
|
$
|
333.9
|
|
|
$
|
334.5
|
|
|
|
|
|||
Add-back: Manufacturing inefficiencies (1)
|
0.9
|
|
|
—
|
|
|
|
|
|||||
Adjusted gross profit
|
$
|
334.8
|
|
|
$
|
334.5
|
|
|
$
|
0.3
|
|
0.1
|
%
|
Percent of net sales
|
39.2
|
%
|
|
40.2
|
%
|
|
(100
|
)
|
bps
|
||||
|
|
|
|
|
|
|
|||||||
Selling, distribution, and administrative expenses
|
$
|
237.6
|
|
|
$
|
244.4
|
|
|
|
|
|||
Less: Amortization of acquired intangible assets
|
(7.7
|
)
|
|
(6.7
|
)
|
|
|
|
|||||
Less: Share-based payment expense
|
(7.5
|
)
|
|
(8.3
|
)
|
|
|
|
|||||
Less: Acquisition-related items (2)
|
—
|
|
|
(0.2
|
)
|
|
|
|
|||||
Adjusted selling, distribution, and administrative expenses
|
$
|
222.4
|
|
|
$
|
229.2
|
|
|
$
|
(6.8
|
)
|
(3.0
|
)%
|
Percent of net sales
|
26.0
|
%
|
|
27.5
|
%
|
|
(150
|
)
|
bps
|
||||
|
|
|
|
|
|
|
|||||||
Operating profit
|
$
|
95.9
|
|
|
$
|
89.5
|
|
|
|
|
|||
Add-back: Amortization of acquired intangible assets
|
7.7
|
|
|
6.7
|
|
|
|
|
|||||
Add-back: Share-based payment expense
|
7.5
|
|
|
8.3
|
|
|
|
|
|||||
Add-back: Manufacturing inefficiencies (1)
|
0.9
|
|
|
—
|
|
|
|
|
|||||
Add-back: Acquisition-related items (2)
|
—
|
|
|
0.2
|
|
|
|
|
|||||
Add-back: Special charge
|
0.4
|
|
|
0.6
|
|
|
|
|
|||||
Adjusted operating profit
|
$
|
112.4
|
|
|
$
|
105.3
|
|
|
$
|
7.1
|
|
6.7
|
%
|
Percent of net sales
|
13.2
|
%
|
|
12.7
|
%
|
|
50
|
|
bps
|
||||
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
66.3
|
|
|
$
|
96.9
|
|
|
|
|
|||
Add-back: Amortization of acquired intangible assets
|
7.7
|
|
|
6.7
|
|
|
|
|
|||||
Add-back: Share-based payment expense
|
7.5
|
|
|
8.3
|
|
|
|
|
|||||
Add-back: Manufacturing inefficiencies (1)
|
0.9
|
|
|
—
|
|
|
|
|
|||||
Add-back: Acquisition-related items (2)
|
—
|
|
|
0.2
|
|
|
|
|
|||||
Add-back: Special charge
|
0.4
|
|
|
0.6
|
|
|
|
|
|||||
Total pre-tax adjustments to net income
|
16.5
|
|
|
15.8
|
|
|
|
|
|||||
Income tax effects
|
(3.8
|
)
|
|
(3.0
|
)
|
|
|
|
|||||
Less: Discrete income tax benefits of the TCJA (3)
|
—
|
|
|
(31.2
|
)
|
|
|
|
|||||
Adjusted net income
|
$
|
79.0
|
|
|
$
|
78.5
|
|
|
$
|
0.5
|
|
0.6
|
%
|
|
|
|
|
|
|
|
|||||||
Diluted earnings per share
|
$
|
1.67
|
|
|
$
|
2.33
|
|
|
|
|
|||
Adjusted diluted earnings per share
|
$
|
1.99
|
|
|
$
|
1.89
|
|
|
$
|
0.10
|
|
5.3
|
%
|
|
Six Months Ended
|
|
|
|
|
|||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
Increase (Decrease)
|
|
Percent Change
|
|||||||
Net sales
|
$
|
1,787.0
|
|
|
$
|
1,674.9
|
|
|
$
|
112.1
|
|
|
6.7
|
%
|
Cost of products sold
|
1,085.6
|
|
|
990.5
|
|
|
95.1
|
|
|
9.6
|
%
|
|||
Gross profit
|
701.4
|
|
|
684.4
|
|
|
17.0
|
|
|
2.5
|
%
|
|||
Percent of net sales
|
39.3
|
%
|
|
40.9
|
%
|
|
(160
|
)
|
bps
|
|
|
|||
Selling, distribution, and administrative expenses
|
487.7
|
|
|
473.9
|
|
|
13.8
|
|
|
2.9
|
%
|
|||
Special charge
|
1.4
|
|
|
0.8
|
|
|
0.6
|
|
|
NM
|
|
|||
Operating profit
|
212.3
|
|
|
209.7
|
|
|
2.6
|
|
|
1.2
|
%
|
|||
Percent of net sales
|
11.9
|
%
|
|
12.5
|
%
|
|
(60
|
)
|
bps
|
|
|
|||
Other expense (income)
|
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense, net
|
17.3
|
|
|
16.1
|
|
|
1.2
|
|
|
7.5
|
%
|
|||
Miscellaneous expense, net
|
2.4
|
|
|
4.0
|
|
|
(1.6
|
)
|
|
NM
|
|
|||
Total other expense
|
19.7
|
|
|
20.1
|
|
|
(0.4
|
)
|
|
NM
|
|
|||
Income before income taxes
|
192.6
|
|
|
189.6
|
|
|
3.0
|
|
|
1.6
|
%
|
|||
Percent of net sales
|
10.8
|
%
|
|
11.3
|
%
|
|
(50
|
)
|
bps
|
|
|
|||
Income tax expense
|
46.7
|
|
|
21.2
|
|
|
25.5
|
|
|
NM
|
|
|||
Effective tax rate
|
24.2
|
%
|
|
11.2
|
%
|
|
|
|
|
|
|
|||
Net income
|
$
|
145.9
|
|
|
$
|
168.4
|
|
|
$
|
(22.5
|
)
|
|
(13.4
|
)%
|
Diluted earnings per share
|
$
|
3.66
|
|
|
$
|
4.04
|
|
|
$
|
(0.38
|
)
|
|
(9.4
|
)%
|
NM - not meaningful
|
|
|
|
|
|
|
|
(In millions, except per share data)
|
Six Months Ended
|
|
|
|
|||||||||
|
February 28, 2019
|
|
February 28, 2018
|
|
Increase (Decrease)
|
Percent Change
|
|||||||
Gross profit
|
$
|
701.4
|
|
|
$
|
684.4
|
|
|
|
|
|||
Add-back: Manufacturing inefficiencies (1)
|
0.9
|
|
|
—
|
|
|
|
|
|||||
Add-back: Acquisition-related items (2)
|
1.2
|
|
|
—
|
|
|
|
|
|||||
Adjusted gross profit
|
$
|
703.5
|
|
|
$
|
684.4
|
|
|
$
|
19.1
|
|
2.8
|
%
|
Percent of net sales
|
39.4
|
%
|
|
40.9
|
%
|
|
(150
|
)
|
bps
|
||||
|
|
|
|
|
|
|
|||||||
Selling, distribution, and administrative expenses
|
$
|
487.7
|
|
|
$
|
473.9
|
|
|
|
|
|||
Less: Amortization of acquired intangible assets
|
(15.4
|
)
|
|
(13.3
|
)
|
|
|
|
|||||
Less: Share-based payment expense
|
(15.3
|
)
|
|
(16.8
|
)
|
|
|
|
|||||
Less: Acquisition-related items (2)
|
—
|
|
|
(0.2
|
)
|
|
|
|
|||||
Adjusted selling, distribution, and administrative expenses
|
$
|
457.0
|
|
|
$
|
443.6
|
|
|
$
|
13.4
|
|
3.0
|
%
|
Percent of net sales
|
25.6
|
%
|
|
26.5
|
%
|
|
(90
|
)
|
bps
|
||||
|
|
|
|
|
|
|
|||||||
Operating profit
|
$
|
212.3
|
|
|
$
|
209.7
|
|
|
|
|
|||
Add-back: Amortization of acquired intangible assets
|
15.4
|
|
|
13.3
|
|
|
|
|
|||||
Add-back: Share-based payment expense
|
15.3
|
|
|
16.8
|
|
|
|
|
|||||
Add-back: Manufacturing inefficiencies (1)
|
0.9
|
|
|
—
|
|
|
|
|
|||||
Add-back: Acquisition-related items (2)
|
1.2
|
|
|
0.2
|
|
|
|
|
|||||
Add-back: Special charge
|
1.4
|
|
|
0.8
|
|
|
|
|
|||||
Adjusted operating profit
|
$
|
246.5
|
|
|
$
|
240.8
|
|
|
$
|
5.7
|
|
2.4
|
%
|
Percent of net sales
|
13.8
|
%
|
|
14.4
|
%
|
|
(60
|
)
|
bps
|
||||
|
|
|
|
|
|
|
|||||||
Net income
|
$
|
145.9
|
|
|
$
|
168.4
|
|
|
|
|
|||
Add-back: Amortization of acquired intangible assets
|
15.4
|
|
|
13.3
|
|
|
|
|
|||||
Add-back: Share-based payment expense
|
15.3
|
|
|
16.8
|
|
|
|
|
|||||
Add-back: Manufacturing inefficiencies (1)
|
0.9
|
|
|
—
|
|
|
|
|
|||||
Add-back: Acquisition-related items (2)
|
1.2
|
|
|
0.2
|
|
|
|
|
|||||
Add-back: Special charge
|
1.4
|
|
|
0.8
|
|
|
|
|
|||||
Total pre-tax adjustments to net income
|
34.2
|
|
|
31.1
|
|
|
|
|
|||||
Income tax effect
|
(8.3
|
)
|
|
(8.3
|
)
|
|
|
|
|||||
Less: Discrete income tax benefits of the TCJA (3)
|
—
|
|
|
(31.2
|
)
|
|
|
|
|||||
Adjusted net income
|
$
|
171.8
|
|
|
$
|
160.0
|
|
|
$
|
11.8
|
|
7.4
|
%
|
|
|
|
|
|
|
|
|
||||||
Diluted earnings per share
|
$
|
3.66
|
|
|
$
|
4.04
|
|
|
|
|
|||
Adjusted diluted earnings per share
|
$
|
4.31
|
|
|
$
|
3.84
|
|
|
$
|
0.47
|
|
12.2
|
%
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1a.
|
Risk Factors
|
Purchases of Equity Securities
|
||||||||||||
Period
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans
|
|
Maximum Number of Shares that May Yet Be Purchased Under the Plans
|
|||||
12/1/2018 through 12/31/2018
|
200,000
|
|
|
$
|
118.41
|
|
|
200,000
|
|
|
4,800,000
|
|
1/1/2019 through 1/31/2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
4,800,000
|
|
2/1/2019 through 2/28/2019
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
4,800,000
|
|
Total
|
200,000
|
|
|
$
|
118.41
|
|
|
200,000
|
|
|
4,800,000
|
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
EXHIBIT 3
|
(a)
|
|
Reference is made to Exhibit 3.1 of registrant's Form 8-K as filed with the Commission on September 26, 2007, which is incorporated herein by reference.
|
|
|
(b)
|
|
Reference is made to Exhibit 3.2 of registrant's Form 8-K as filed with the Commission on September 26, 2007, which is incorporated herein by reference.
|
|
|
(c)
|
|
Reference is made to Exhibit 3.C of registrant's Form 10-Q as filed with the Commission on January 9, 2017, which is incorporated herein by reference.
|
|
|
(d)
|
|
Reference is made to Exhibit 3.D of registrant's Form 10-Q as filed with the Commission on January 9, 2017, which is incorporated herein by reference.
|
|
EXHIBIT 10
|
(a)
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
|
(b)
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
EXHIBIT 31
|
(a)
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
|
(b)
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
EXHIBIT 32
|
(a)
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
|
(b)
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
EXHIBIT 101
|
.INS
|
XBRL Instance Document
|
|
The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
Filed with the Commission as part of this Form 10-Q.
|
|
.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
Filed with the Commission as part of this Form 10-Q.
|
Date:
|
April 3, 2019
|
|
By:
|
/S/ VERNON J. NAGEL
|
|
|
|
|
VERNON J. NAGEL
CHAIRMAN, PRESIDENT, AND CHIEF EXECUTIVE OFFICER
|
Date:
|
April 3, 2019
|
|
By:
|
/S/ RICHARD K. REECE
|
|
|
|
|
RICHARD K. REECE
EXECUTIVE VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER (Principal Financial and
Accounting Officer)
|
1.
|
Section 2.8 is hereby replaced in its entirety by the following:
|
2.
|
Section 4.2 is hereby replaced in its entirety by the following:
|
3.
|
This Amendment to the Severance Agreement shall be effective as of the date of this Amendment. Except as hereby modified, the Severance Agreement shall remain in full force and effect.
|
|
|
COMPANY
|
|
|
|
|
|
EXECUTIVE
|
|
ACUITY BRANDS, INC.
|
|
/s/ Vernon J. Nagel
|
|
By:
|
/s/ Richard K. Reece
|
VERNON J. NAGEL
|
|
|
RICHARD K. REECE
|
|
|
|
Executive Vice President and
Chief Financial Officer
|
1.
|
Section 2.11 is hereby replaced in its entirety by the following:
|
2.
|
This Amendment to the Severance Agreement shall be effective as of the date of this Amendment. Except as hereby modified, the Severance Agreement shall remain in full force and effect.
|
|
|
COMPANY
|
|
|
|
|
|
EXECUTIVE
|
|
ACUITY BRANDS, INC.
|
|
/s/ Richard K. Reece
|
|
By:
|
/s/ Vernon J. Nagel |
RICHARD K. REECE
|
|
|
VERNON J. NAGEL
|
|
|
|
Chairman, President and CEO
|
1.
|
I have reviewed this report on Form 10-Q of Acuity Brands, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Vernon J. Nagel
|
|
|
||
Vernon J. Nagel
|
|
|
||
Chairman, President, and Chief Executive Officer
|
|
|
1.
|
I have reviewed this report on Form 10-Q of Acuity Brands, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and
|
(d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Richard K. Reece
|
|
|
Richard K. Reece
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
|
/s/ Vernon J. Nagel
|
|
|
Vernon J. Nagel
|
|
|
Chairman, President, and Chief Executive Officer
|
|
|
April 3, 2019
|
|
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.
|
/s/ Richard K. Reece
|
|
|
Richard K. Reece
|
|
|
Executive Vice President and Chief Financial Officer
|
|
|
April 3, 2019
|
|
|