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Item 1. Financial Statements

2022-08-03 compared with 2022-05-04 · 195 added, 187 removed, 645 unchanged (37% of the section changed)

FINANCIAL STATEMENTS

CRANE HOLDINGS, CO.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(in millions, except per share data) 2022 2021 2022 2021

8 unchanged sentences

Interest expense ( 11.4 ) ( 11.4 ) ( 22.5 ) ( 25.0 )

Gain on sale of business 228.7 — 228.7 —

Miscellaneous income, net 14.8 9.7 18.3 13.6

Total other expense ( 7.3 ) ( 9.3 )

Income from continuing operations before income taxes 126.3 130.7

Total other income (expense) 232.7 ( 1.3 ) 225.4 ( 10.5 )

Income before income taxes 357.1 143.3 496.8 280.5

Provision for income taxes 98.9 5.0 133.6 33.8

Net income from continuing operations attributable to common shareholders 94.7 103.4

Income from discontinued operations, net of tax (Note 2) 10.3 5.0

Net income attributable to common shareholders $ 258.2 $ 138.3 $ 363.2 $ 246.7

Earnings per basic share:

Earnings per basic share from continuing operations $ 1.66 $ 1.79

Earnings per basic share from discontinued operations 0.18 0.10

Earnings per basic share $ 1.84 $ 1.89

Earnings per diluted share:

Earnings per diluted share from continuing operations $ 1.64 $ 1.75

Earnings per diluted share from discontinued operations 0.17 0.09

Earnings per diluted share $ 1.81 $ 1.84

Earnings per share:

Basic $ 4.60 $ 2.36 $ 6.41 $ 4.22

Diluted $ 4.54 $ 2.33 $ 6.32 $ 4.17

Average shares outstanding:

3 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

CRANE HOLDINGS, CO.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(in millions) 2022 2021 2022 2021

3 unchanged sentences

Changes in pension and postretirement plan assets and benefit obligation, net of tax 3.5 5.2 6.8 10.1

Other comprehensive loss, net of tax ( 18.3 ) ( 30.0 )

Other comprehensive (loss) income, net of tax ( 72.4 ) 12.8 ( 90.7 ) ( 17.2 )

Comprehensive income before allocation to noncontrolling interests 185.8 151.1 272.5 229.5

2 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

CRANE HOLDINGS, CO.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions) March 31,

(in millions) June 30,

2022 December 31,

1 unchanged sentence

Cash and cash equivalents $ 650.6 $ 478.6

Accounts receivable, net of allowance for doubtful accounts of $ 9.3 as of March 31, 2022 and $ 10.4 as of December 31, 2021

Accounts receivable, net of allowance for doubtful accounts of $ 10.0 as of June 30, 2022 and $ 10.4 as of December 31, 2021

Current insurance receivable - asbestos 13.7 13.7

6 unchanged sentences

Other current assets 130.8 118.7

Current assets held for sale 234.1 220.5

Total current assets 1,728.4 1,543.1

10 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

CRANE HOLDINGS, CO.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share and share data) March 31,

(in millions, except per share and share data) June 30,

2022 December 31,

6 unchanged sentences

and foreign taxes on income 54.1 10.6

Current liabilities held for sale 41.5 44.9

Total current liabilities 845.3 789.3

22 unchanged sentences

See Notes to Condensed Consolidated Financial Statements.

CRANE HOLDINGS, CO.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(in millions) 2022 2021

Operating activities from continuing operations:

Net income from continuing operations attributable to common shareholders $ 94.7 $ 103.4

Operating activities:

Net income attributable to common shareholders $ 363.2 $ 246.7

Gain on sale of business ( 228.7 ) —

Gain on sale of property — ( 18.5 )

8 unchanged sentences

Other 14.3 ( 0.5 )

Total (used for) provided by operating activities from continuing operations ( 49.3 ) 47.6

Investing activities from continuing operations:

Total provided by operating activities 49.0 206.7

Investing activities:

Proceeds from disposition of capital assets 0.1 23.3

Capital expenditures ( 25.2 ) ( 14.6 )

Proceeds from sale of business 314.3 —

Purchase of marketable securities — ( 10.0 )

Proceeds from sale of marketable securities — 40.0

Total (used for) provided by investing activities from continuing operations ( 12.5 ) 29.8

Financing activities from continuing operations:

Total provided by investing activities 289.2 38.7

Financing activities:

Dividends paid ( 53.1 ) ( 50.2 )

3 unchanged sentences

Net borrowings from issuance of commercial paper with maturities of 90 days or less 119.4 15.0

Total used for financing activities from continuing operations ( 97.8 ) ( 44.8 )

Discontinued operations:

Total (used for) provided by operating activities ( 6.2 ) 2.6

Total used for investing activities ( 0.5 ) ( 0.3 )

(Decrease) increase in cash and cash equivalents from discontinued operations ( 6.7 ) 2.3

Repayment of term loan — ( 348.1 )

Total used for financing activities ( 135.6 ) ( 405.2 )

Effect of exchange rates on cash and cash equivalents ( 30.6 ) ( 4.5 )

(Decrease) increase in cash and cash equivalents ( 171.4 ) 27.4

Increase (decrease) in cash and cash equivalents 172.0 ( 164.3 )

Cash and cash equivalents at beginning of period 478.6 551.0

Cash and cash equivalents at end of period $ 650.6 $ 386.7

CRANE HOLDINGS, CO.

AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended

Six Months Ended

(in millions) 2022 2021

Detail of cash used for operating working capital from continuing operations:

Detail of cash used for operating working capital:

Accounts receivable $ ( 65.1 ) $ ( 45.1 )

16 unchanged sentences

Certain amounts in the prior periods’ condensed consolidated financial statements have been reclassified to conform to the current period presentation.

Holding Company Reorganization

On May 16, 2022, Crane Co., a Delaware corporation (“Crane Co.”), completed its previously announced reorganization merger pursuant to the Agreement and Plan of Merger, dated as of February 28, 2022 (the “Reorganization Agreement”), by and among Crane Co., Crane Holdings, Co., a Delaware corporation (“Crane Holdings”), and Crane Transaction Company, LLC, a Delaware limited liability company and, as of immediately prior to the consummation of such merger, a wholly-owned subsidiary of Crane Holdings (“Merger Sub”).

The Reorganization Agreement provided for the merger of Crane Co.

and Merger Sub, with Crane Co.

surviving the merger as a wholly-owned subsidiary of Crane Holdings (the “Reorganization Merger”).

Following the Reorganization Merger, on May 16, 2022, Crane Co.

(which, as a result of the Reorganization Merger, became a wholly-owned subsidiary of Crane Holdings) converted from a Delaware corporation into a Delaware limited liability company named “Crane LLC” (such conversion, together with the Reorganization Merger, the “Reorganization”).

Following the Reorganization, substantially all of the assets of Crane LLC were distributed, assigned, transferred, conveyed and delivered to, and related liabilities of Crane LLC were assumed by, Crane Holdings.

On May 17, 2022, Crane LLC converted from a Delaware limited liability company to a Delaware corporation named “Crane Co.” Subsequently, on May 26, 2022, Crane Co.

filed a Certificate of Amendment to its Certificate of Incorporation (the “Certificate of Amendment”) with the Secretary of State of the State of Delaware, which became effective upon filing, pursuant to which the Company officially changed its name from “Crane Co.” to “Redco Corporation”.

The “Crane Co.” name has been reserved for future use by Crane Holdings.

Sale of business

On April 8, 2022, the Company entered into an agreement to sell Crane Supply for CAD 380 million on a cash-free and debt-free basis.

The sale closed on May 31, 2022.

Pending Separation

5 unchanged sentences

for $ 360 million on a cash-free and debt-free basis.

The sale is subject to customary closing conditions and regulatory approvals.

The historical results of Engineered Materials are presented as discontinued operations and, as such, have been excluded from both continuing operations and segment results for all periods presented.

Throughout this Quarterly Report on Form 10-Q, unless otherwise indicated, amounts and activity are presented on a continuing operations basis.

Please see Note 2, “Discontinued Operations” for additional details.

In the second quarter of 2021, the assets and liabilities of the segment were classified as held for sale, and the segment’s results were presented as discontinued operations.

This change was applied on a retrospective basis.

On May 26, 2022, Verzatec terminated the sale agreement and paid $ 7.5 million to the Company in termination fees.

As such, the results of the Engineered Materials segment are presented as continuing operations as of June 30, 2022.

Recent Accounting Pronouncements - Adopted

5 unchanged sentences

The adoption of this new standard did not impact our consolidated financial statements.

Note 2 - Discontinued Operations

A business is classified as held for sale when management having the authority to approve the action commits to a plan to sell the business, the sale is probable to occur during the next 12 months at a price that is reasonable in relation to its current fair value and certain other criteria are met.

A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell.

When the carrying amount of the business exceeds its estimated fair value less cost to sell, a loss is recognized and updated each reporting period as appropriate.

Executing on our strategy to focus our growth investments on our three remaining segments, on May 16, 2021, we entered into an agreement to sell our Engineered Materials segment to Grupo Verzatec S.A.

for $ 360 million on a cash-free and debt-free basis.

The sale is subject to customary closing conditions and regulatory approvals.

In the second quarter of 2021, the assets and liabilities of the segment were classified as held for sale, and the segment’s results were presented as discontinued operations.

This change was applied on a retrospective basis.

On March 17, 2022, the Department of Justice (DOJ) filed a complaint to enjoin the sale transaction.

The parties are responding to the complaint and engaging with the DOJ in the normal course to address the DOJ’s antitrust concerns regarding a minor overlap in a narrow range of material used in certain commercial building applications.

We believe that the sale is probable of closing and, as such, continue to present the segment’s results as discontinued operations as of March 31, 2022.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Financial results from discontinued operations:

Three Months Ended

(in millions) 2022 2021

Net sales $ 70.4 $ 53.9

Cost of sales 52.4 43.1

Selling, general and administrative 4.6 4.4

Income from discontinued operations $ 13.4 $ 6.4

Income tax provision 3.1 1.4

Income from discontinued operations, net of tax $ 10.3 $ 5.0

Major classes of assets and liabilities to be transferred in the transaction:

(in millions) March 31, 2022 December 31, 2021

Accounts receivable, net $ 20.7 $ 10.6

Inventories, net 10.9 8.2

Other current assets 0.8 0.6

Current assets held for sale (a)

Property, plant and equipment, net 28.8 28.3

Other assets 0.4 0.3

Intangible assets, net 1.2 1.2

Goodwill 171.3 171.3

Long-term assets held for sale (a)

Assets held for sale $ 234.1 $ 220.5

Accounts payable $ 28.9 $ 27.0

Accrued liabilities 6.7 12.0

Current liabilities held for sale (a)

Long-term deferred tax liability 5.8 5.8

Other liabilities 0.1 0.1

Long-term liabilities held for sale (a)

Liabilities held for sale $ 41.5 $ 44.9

(a) We reasonably expect to close on this transaction within one year and therefore have presented the assets and liabilities as current as of March 31, 2022.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 2 - Segment Results

14 unchanged sentences

Pumps and Systems manufactures pumps and related products for water and wastewater applications in the industrial, municipal, commercial and military markets.

On April 8, 2022, the Company entered into an agreement to sell Crane Supply for CAD 380 million on a cash-free and debt-free basis.

The sale is subject to customary closing conditions and regulatory approvals and is expected to close in the second quarter of 2022.

Payment & Merchandising Technologies

7 unchanged sentences

Engineered Materials sells the majority of its products directly to RV, trailer, and truck manufacturers, and it uses distributors and retailers to serve the commercial and industrial construction markets.

In the second quarter of 2021, the assets and liabilities of the Engineered Materials segment were reclassified as held for sale and results are presented as discontinued operations and, therefore, not included in the tables below.

This change was applied on a retrospective basis.

Please see Note 2, “Discontinued Operations” for additional details.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Three Months Ended

Financial information by reportable segment is set forth below.

Three Months Ended Six Months Ended

June 30, June 30,

(in millions) 2022 2021 2022 2021

2 unchanged sentences

Payment & Merchandising Technologies 334.0 328.2 666.6 665.6

Engineered Materials 72.8 59.1 143.1 113.0

Total $ 864.3 $ 855.5 $ 1,735.7 $ 1,688.9

3 unchanged sentences

Payment & Merchandising Technologies 80.7 77.9 164.9 163.7

Engineered Materials 7.3 7.7 20.2 14.1

Corporate ( 32.4 ) ( 18.3 ) ( 59.5 ) ( 40.2 )

2 unchanged sentences

Interest expense ( 11.4 ) ( 11.4 ) ( 22.5 ) ( 25.0 )

Gain on sale of business 228.7 — 228.7 —

Miscellaneous income, net 14.8 9.7 18.3 13.6

Income from continuing operations before income taxes $ 126.3 $ 130.7

(in millions) March 31, 2022 December 31, 2021

Income before income taxes $ 357.1 $ 143.3 $ 496.8 $ 280.5

(in millions) June 30, 2022 December 31, 2021

Aerospace & Electronics $ 633.9 $ 604.7

1 unchanged sentence

Payment & Merchandising Technologies 2,032.2 2,096.5

Engineered Materials 233.7 220.5

Corporate 463.7 324.5

Assets held for sale 234.1 220.5

Total $ 4,499.1 $ 4,486.6

(in millions) March 31, 2022 December 31, 2021

(in millions) June 30, 2022 December 31, 2021

Aerospace & Electronics $ 202.3 $ 202.5

1 unchanged sentence

Payment & Merchandising Technologies 835.0 860.6

Engineered Materials 171.3 171.3

Total $ 1,523.7 $ 1,583.8

3 unchanged sentences

The following table presents net sales disaggregated by product line for each segment:

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(in millions) 2022 2021 2022 2021

14 unchanged sentences

Total Payment & Merchandising Technologies $ 334.0 $ 328.2 $ 666.6 $ 665.6

Engineered Materials

FRP - Recreational Vehicles $ 32.2 $ 24.8 $ 67.9 $ 49.1

FRP - Building Products 31.8 26.5 59.2 48.3

FRP - Transportation 8.8 7.8 16.0 15.6

Total Engineered Materials 72.8 59.1 143.1 113.0

Net sales $ 864.3 $ 855.5 $ 1,735.7 $ 1,688.9

1 unchanged sentence

The transaction price allocated to remaining performance obligations represents the transaction price of firm orders which have not yet been fulfilled, which we also refer to as total backlog.

As of March 31, 2022, total backlog was $ 1,309.8 million.

As of June 30, 2022, total backlog was $ 1,387.0 million.

We expect to recognize approximately 69 % of our remaining performance obligations as revenue in 2022, an additional 29 % in 2023 and the balance thereafter.

8 unchanged sentences

Net contract assets and contract liabilities consisted of the following:

(in millions) March 31, 2022 December 31, 2021

(in millions) June 30, 2022 December 31, 2021

Contract assets $ 87.8 $ 73.0

Contract liabilities $ 99.3 $ 101.1

We recognized revenue of $ 32.3 million during the three-month period ended March 31, 2022 related to contract liabilities as of December 31, 2021.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

We recognized revenue of $ 30.3 million and $ 62.4 million during the three-and six-month periods ended June 30, 2022, respectively, related to contract liabilities as of December 31, 2021.

Note 4 - Earnings Per Share

3 unchanged sentences

Diluted earnings per share gives effect to all potentially dilutive common shares outstanding during the period.

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(in millions, except per share data) 2022 2021 2022 2021

Net income from continuing operations attributable to common shareholders $ 94.7 $ 103.4

Income from discontinued operations, net of tax (Note 2) 10.3 5.0

Net income attributable to common shareholders $ 258.2 $ 138.3 $ 363.2 $ 246.7

3 unchanged sentences

Earnings per basic share $ 4.60 $ 2.36 $ 6.41 $ 4.22

Earnings per basic share from continuing operations $ 1.66 $ 1.79

Earnings per basic share from discontinued operations 0.18 0.10

Earnings per basic share $ 1.84 $ 1.89

Earnings per diluted share $ 4.54 $ 2.33 $ 6.32 $ 4.17

Earnings per diluted share from continuing operations $ 1.64 $ 1.75

Earnings per diluted share from discontinued operations 0.17 0.09

Earnings per diluted share $ 1.81 $ 1.84

The computation of diluted earnings per share excludes the effect of the potentially anti-dilutive securities which was 0.3 million and 1.8 million for the three months ended March 31, 2022 and 2021, respectively .

The computation of diluted earnings per share excludes the effect of the potentially anti-dilutive securities which was 0.4 million and 1.3 million for the three months ended June 30, 2022, and 2021, respectively and 0.3 million and 1.5 million for the six months ending June 30, 2022 and 2021 , respectively.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 5 - Changes in Equity and Accumulated Other Comprehensive Loss

A summary of changes in equity for the year-to-date interim periods ended March 31, 2022 and 2021 is provided below:

A summary of changes in equity for the year-to-date interim periods ended June 30, 2022 and 2021 is provided below:

(in millions, except share data) Common

20 unchanged sentences

BALANCE MARCH 31, 2022 72.4 $ 364.7 $ 2,605.9 $ ( 458.6 ) $ ( 861.1 ) $ 1,723.3 $ 2.9 $ 1,726.2

Net income — — 258.2 — — 258.2 — 258.2

Cash dividends ($ 0.47 per share)

— — ( 26.4 ) — — ( 26.4 ) — ( 26.4 )

Reacquisition on open market of 1,959,069 shares

— — — — ( 27.9 ) ( 27.9 ) — ( 27.9 )

Exercise of stock options, net of shares reacquired of 94,774 shares

— — — — 1.1 1.1 — 1.1

Impact from settlement of share-based awards, net of shares acquired — ( 1.3 ) — — 1.2 ( 0.1 ) — ( 0.1 )

Stock-based compensation expense — 5.9 — — — 5.9 — 5.9

Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — 3.5 — 3.5 — 3.5

Currency translation adjustment — — — ( 75.8 ) — ( 75.8 ) ( 0.1 ) ( 75.9 )

BALANCE June 30, 2022 72.4 $ 369.3 $ 2,837.7 $ ( 530.9 ) $ ( 886.7 ) $ 1,861.8 $ 2.8 $ 1,864.6

(in millions, except share data) Common

Par Value Capital

Surplus Retained

Earnings Accumulated

Comprehensive

Loss Treasury

Share- holders’

Equity Non-controlling

Interest Total

BALANCE DECEMBER 31, 2020 72.4 $ 330.7 $ 2,192.8 $ ( 466.4 ) $ ( 600.6 ) $ 1,528.9 $ 2.2 $ 1,531.1

7 unchanged sentences

BALANCE MARCH 31, 2021 72.4 $ 334.7 $ 2,276.2 $ ( 497.2 ) $ ( 591.1 ) $ 1,595.0 $ 3.0 $ 1,598.0

Net income — — 138.3 — — 138.3 — $ 138.3

Cash dividends ($ 0.43 per share)

— — ( 25.2 ) — — ( 25.2 ) — ( 25.2 )

Impact from settlement of share-based awards, net of shares acquired — 7.6 — — ( 9.5 ) ( 1.9 ) — ( 1.9 )

Stock-based compensation expense — 6.1 — — — 6.1 — 6.1

Changes in pension and postretirement plan assets and benefit obligation, net of tax — — — 5.2 — 5.2 — 5.2

Currency translation adjustment — — — 7.7 — 7.7 ( 0.1 ) 7.6

BALANCE JUNE 30, 2021 72.4 $ 348.4 $ 2,389.3 $ ( 484.3 ) $ ( 600.6 ) $ 1,725.2 $ 2.9 $ 1,728.1

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The table below provides the accumulated balances for each classification of accumulated other comprehensive income (loss), as reflected on our Condensed Consolidated Balance Sheets.

4 unchanged sentences

Net period other comprehensive income (loss) 6.8 ( 97.5 ) ( 90.7 )

Balance as of March 31, 2022 $ ( 298.6 ) $ ( 160.0 ) $ ( 458.6 )

Net of tax benefit of $ 119.1 million and $ 117.9 million as of March 31, 2022 and December 31, 2021, respectively.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The table below illustrates the amounts reclassified out of each component of accumulated other comprehensive loss for the three month periods ended March 31, 2022 and 2021.

Balance as of June 30, 2022 $ ( 295.1 ) $ ( 235.8 ) $ ( 530.9 )

Net of tax benefit of $ 120.1 million and $ 117.9 million as of June 30, 2022 and December 31, 2021, respectively.

The table below illustrates the amounts reclassified out of each component of accumulated other comprehensive loss for the three- and six-month periods ended June 30, 2022, and 2021.

Amortization of pension and postretirement components has been recorded within “Miscellaneous income, net” on our Condensed Consolidated Statements of Operations.

Three Months Ended

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2022 2021 2022 2021

Amortization of pension items:

Prior service costs $ — $ ( 0.1 ) $ — $ ( 0.1 )

Net loss 4.8 6.5 9.5 13.1

6 unchanged sentences

Note 6 - Defined Benefit and Postretirement Benefits

For all plans, the components of net periodic benefit for the three months ended March 31, 2022 and 2021 are as follows:

For all plans, the components of net periodic benefit for the three months ended June 30, 2022 and 2021 are as follows:

Pension Postretirement

7 unchanged sentences

Net periodic benefit $ ( 2.6 ) $ ( 2.4 ) $ — $ —

For all plans, the components of net periodic benefit for the six months ended June 30, 2022, and 2021 are as follows:

Pension Postretirement

(in millions) 2022 2021 2022 2021

Service cost $ 2.6 $ 3.2 $ 0.1 $ 0.2

Interest cost 10.4 10.4 0.4 0.3

Expected return on plan assets ( 27.9 ) ( 29.8 ) — —

Recognized curtailment gain — ( 0.7 ) — —

Amortization of prior service cost — ( 0.1 ) ( 0.5 ) ( 0.5 )

Amortization of net loss 9.5 13.1 — —

Net periodic benefit $ ( 5.4 ) $ ( 3.9 ) $ — $ —

The components of net periodic benefit, other than the service cost component, are included in “Miscellaneous income, net” in our Condensed Consolidated Statements of Operations.

3 unchanged sentences

Expected contributions in 2022 $ 20.1 $ 2.6

Amounts contributed during the three months ended March 31, 2022 $ 2.8 $ —

Amounts contributed during the six months ended June 30, 2022 $ 8.6 $ —

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3 unchanged sentences

Our effective tax rates are as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Effective Tax Rate 27.7 % 3.5 % 26.9 % 12.0 %

Our effective tax rate attributable to continuing operations for the three months ended March 31, 2022 is higher than the prior year’s comparable period primarily due to higher non-U.S.

taxes, partially offset by a greater benefit related to share-based compensation.

Our effective tax rate attributable to continuing operations for the three months ended March 31, 2022 is higher than the statutory U.S.

federal tax rate of 21% primarily due to earnings in jurisdictions with statutory tax rates higher than the U.S., expenses that are statutorily non-deductible for income tax purposes and U.S.

Our effective tax rates for the three and six months ended June 30, 2022, are higher than the prior year’s comparable periods primarily due to the reversal of a deferred tax asset established in a prior period that relates to the sale of a subsidiary, partially offset by earnings in jurisdictions with statutory tax rates lower than the United States.

Our effective tax rate for the three and six months ended June 30, 2022 is higher than the statutory U.S.

federal tax rate of 21% primarily due to earnings in jurisdictions with statutory tax rates higher than the United States., expenses that are statutorily non-deductible for income tax purposes and U.S.

state taxes, partially offset by excess share-based compensation benefits, tax credit utilization, and the statutory U.S.

2 unchanged sentences

Unrecognized Tax Benefits

During the three months ended March 31, 2022, our gross unrecognized tax benefits, excluding interest and penalties, increased by $ 0.4 million, primarily due to increases in tax positions taken in the current period, partially offset by reductions from expiration of statutes of limitations.

During the three months ended March 31, 2022, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate increased by $ 0.6 million.

During the three months ended June 30, 2022, our gross unrecognized tax benefits, excluding interest and penalties, decreased by $ 0.3 million, primarily as a result of decreases due to expiration of statutes of limitations in the current year and tax positions taken in the current period, partially offset by increases in tax positions taken in the current year.

During the six months ended June 30, 2022, our gross unrecognized tax benefits, excluding interest and penalties, increased by $ 0.2 million primarily as a result of tax positions taken in the current year, partially offset by reductions from expirations of statutes of limitations and tax positions taken during the prior period.

During the three and six months ended June 30, 2022, the total amount of unrecognized tax benefits that, if recognized, would affect our effective tax rate (decreased)/increased by $( 0.3 ) million and $ 0.3 million respectively.

The difference between these amounts relates to (1) offsetting tax effects from other tax jurisdictions, and (2) interest expense, net of deferred taxes.

During the three months ended March 31, 2022, we recognized $ 0.3 million of interest expense related to unrecognized tax benefits in our Condensed Consolidated Statement of Operations.

As of March 31, 2022, and December 31, 2021, the total amount of accrued interest and penalty expense related to unrecognized tax benefits recorded in our Condensed Consolidated Balance Sheets was $ 5.2 million and $ 4.9 million, respectively.

During the three and six months ended June 30, 2022, we recognized $( 0.1 ) million and $ 0.2 million, respectively, of interest and penalty (income) / expense related to unrecognized tax benefits in our Condensed Consolidated Statement of Operations.

As of June 30, 2022, and December 31, 2021, the total amount of accrued interest and penalty expense related to unrecognized tax benefits recorded in our Condensed Consolidated Balance Sheets was $ 5.1 million and $ 4.9 million, respectively.

During the next twelve months, it is reasonably possible that our unrecognized tax benefits may decrease by $ 6.1 million due to expiration of statutes of limitations and settlements with tax authorities.

9 unchanged sentences

A reporting unit is an operating segment unless discrete financial information is prepared and reviewed by segment management for businesses one level below that operating segment (a “component”), in which case the component would be the reporting unit.

As of March 31, 2022, we had seven reporting units.

In the second quarter of 2021, the assets and liabilities of our Engineered Materials segment (which was a separate reportable segment and reporting unit) were classified as held for sale.

Please see Note 2 for additional details.

As of June 30, 2022, we had seven reporting units.

Intangibles with indefinite useful lives, consisting of trade names, are tested annually for impairment, or when events or changes in circumstances indicate the potential for impairment.

4 unchanged sentences

Changes to goodwill are as follows:

(in millions) Aerospace & Electronics Process Flow Technologies Payment & Merchandising Technologies Total

(in millions) Aerospace & Electronics Process Flow Technologies Payment & Merchandising Technologies Engineered Materials Total

Balance as of December 31, 2021 $ 202.5 $ 349.4 $ 860.6 $ 171.3 $ 1,583.8

Currency translation ( 0.2 ) ( 12.0 ) ( 25.6 ) — ( 37.8 )

Balance at March 31, 2022 $ 202.5 $ 346.1 $ 854.1 $ 1,402.7

As of March 31, 2022, we had $ 452.1 million of net intangible assets, of which $ 70.4 million were intangibles with indefinite useful lives.

Disposal on sale of business — ( 22.3 ) — — ( 22.3 )

Balance at June 30, 2022 $ 202.3 $ 315.1 $ 835.0 $ 171.3 $ 1,523.7

As of June 30, 2022, we had $ 435.8 million of net intangible assets, of which $ 69.5 million were intangibles with indefinite useful lives.

As of December 31, 2021, we had $ 467.1 million of net intangible assets, of which $ 70.6 million were intangibles with indefinite useful lives.

Changes to intangible assets are as follows:

(in millions) Three Months Ended

March 31, 2022 Year Ended December 31, 2021

(in millions) Six Months Ended

June 30, 2022 Year Ended December 31, 2021

Balance at beginning of period, net of accumulated amortization $ 467.1 $ 520.3

4 unchanged sentences

A summary of intangible assets follows:

March 31, 2022 December 31, 2021

June 30, 2022 December 31, 2021

(in millions) Weighted Average

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Accrued liabilities consist of:

(in millions) March 31,

(in millions) June 30,

2022 December 31,

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Warranty provision is included within “Cost of sales” in our Condensed Consolidated Statements of Operations.

The following table summarizes warranty activity recorded during the three months ended March 31, 2022 and 2021.

Three Months Ended March 31,

The following table summarizes warranty activity recorded during the three and six months ended June 30, 2022, and 2021.

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2022 2021 2022 2021

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Information Regarding Claims and Costs in the Tort System

As of March 31, 2022, we were a defendant in cases filed in numerous state and federal courts alleging injury or death as a result of exposure to asbestos.

As of June 30, 2022, we were a defendant in cases filed in numerous state and federal courts alleging injury or death as a result of exposure to asbestos.

Activity related to asbestos claims during the periods indicated was as follows:

Three Months Ended Year Ended

March 31, December 31,

Three Months Ended Six Months Ended Year Ended

June 30, June 30, December 31,

2022 2021 2022 2021 2021

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Ending claims 30,099 29,788 30,099 29,788 29,958

Of the 30,312 pending claims as of March 31, 2022, approximately 18,000 claims were pending in New York of which approximately 16,000 are non-malignancy claims that were filed over 15 years ago and have been inactive under New York court orders.

Of the 30,099 pending claims as of June 30, 2022, approximately 18,000 claims were pending in New York of which approximately 16,000 are non-malignancy claims that were filed over 15 years ago and have been inactive under New York court orders.

We have tried several cases resulting in defense verdicts by the jury or directed verdicts for the defense by the court.

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We have also tried several other cases resulting in plaintiff verdicts which we paid or settled after unsuccessful appeals.

The gross settlement and defense costs incurred (before insurance recoveries and tax effects) by us for the three months ended March 31, 2022 and 2021 totaled $ 13.0 million and $ 9.1 million, respectively.

The gross settlement and defense costs incurred (before insurance recoveries and tax effects) by us for the six months ended June 30, 2022 and 2021 totaled $ 28.5 million and $ 21.3 million, respectively.

In contrast to the recognition of settlement and defense costs, which reflect the current level of activity in the tort system, cash payments and receipts generally lag the tort system activity by several months or more and may show some fluctuation from period to period.

Cash payments of settlement amounts are not made until all releases and other required documentation are received by us, and reimbursements of both settlement amounts and defense costs by insurers may be uneven due to insurer payment practices, transitions from one insurance layer to the next excess layer and the payment terms of certain reimbursement agreements.

Our total pre-tax payments for settlement and defense costs, net of funds received from insurers, for the three months ended March 31, 2022 and, 2021 totaled $ 7.5 million and $ 10.8 million, respectively.

Our total pre-tax payments for settlement and defense costs, net of funds received from insurers, for the six months ended June 30, 2022 and 2021 totaled $ 23.5 million and $ 20.2 million, respectively.

Detailed below are the comparable amounts for the periods indicated.

Three Months Ended Year Ended

March 31, December 31,

Three Months Ended Six Months Ended Year Ended

June 30, June 30, December 31,

(in millions) 2022 2021 2022 2021 2021

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Defense costs incurred (1)

2.8 3.8 5.4 7.4 14.6

Total costs incurred $ 15.4 $ 12.2 $ 28.5 $ 21.3 $ 55.2

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The amounts shown for settlement and defense costs incurred, and cash payments, are not necessarily indicative of future period amounts, which may be higher or lower than those reported.

Cumulatively through March 31, 2022, we have resolved (by settlement or dismissal) approximately 144,000 claims.

Cumulatively through June 30, 2022, we have resolved (by settlement or dismissal) approximately 145,000 claims.

The related settlement cost incurred by us and our insurance carriers is approximately $ 742 million, for an average settlement cost per resolved claim of approximately $ 5,100 .

The average settlement cost per claim resolved during the years ended December 31, 2021, 2020 and 2019 was $ 18,800 , $ 13,900 , and $ 15,800 , respectively.

Because claims are sometimes

Because claims are sometimes dismissed in large

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

dismissed in large groups, the average cost per resolved claim, as well as the number of open claims, can fluctuate significantly from period to period.

groups, the average cost per resolved claim, as well as the number of open claims, can fluctuate significantly from period to period.

In addition to large group dismissals, the nature of the disease and corresponding settlement amounts for each claim resolved will also drive changes from period to period in the average settlement cost per claim.

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Accordingly, on December 31, 2016, we updated and extended our asbestos liability estimate through 2059, the generally accepted end point.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Following our experience in the tort system post the Dummitt decision, we entered into several, increasingly similar, group settlements with various plaintiff firms and we expect this new trend of these types of group settlements to continue.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Accordingly, effective as of December 31, 2019, we updated our estimate of the asbestos liability, including revised costs of settlement or indemnity payments and defense costs relating to currently pending claims and future claims projected to be filed against us through the same expected end point of 2059.

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The liability is reduced when cash payments are made in respect of settled claims and defense costs.

The liability was $ 600 million and $ 612 million as of March 31, 2022 and December 31, 2021, respectively.

The liability was $ 580 million and $ 612 million as of June 30, 2022 and December 31, 2021, respectively.

It is not possible to forecast when cash payments related to the asbestos liability will be fully expended;

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None of these estimated costs have been discounted to present value due to the inability to reliably forecast the timing of payments.

The current portion of the total estimated liability at March 31, 2022 and December 31, 2021 is $ 62.3 million and represents our best estimate of total asbestos costs expected to be paid during the twelve-month period.

The current portion of the total estimated liability at June 30, 2022 and December 31, 2021 is $ 62.3 million and represents our best estimate of total asbestos costs expected to be paid during the twelve-month period.

Such amount is based upon the actuarial model together with our prior year payment experience for both settlement and defense costs.

We have made our best estimate of the costs through 2059.

Through March 31, 2022, our actual experience during the updated reference period for mesothelioma claims filed and dismissed generally approximated the assumptions in our liability estimate.

Through June 30, 2022, our actual experience during the updated reference period for mesothelioma claims filed and dismissed generally approximated the assumptions in our liability estimate.

In addition to this claims experience, we considered additional quantitative and qualitative factors such as the nature of the aging of pending claims, significant appellate rulings and legislative developments, and their respective effects on expected future settlement values.

Based on this evaluation, we determined that no change in the estimate was warranted for the period ended March 31, 2022.

Based on this evaluation, we determined that no change in the estimate was warranted for the period ended June 30, 2022.

Insurance Coverage and Receivables.

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In addition, the timing and amount of reimbursements will vary because our insurance coverage for asbestos claims involves multiple insurers, with different policy terms and certain gaps in coverage.

In addition to consulting with legal counsel on these insurance matters, we retained insurance consultants to assist management in the estimation of probable insurance recoveries based upon the aggregate liability estimate described above and assuming the continued viability of all solvent insurance carriers.

Based upon the analysis of policy terms and other factors noted above by our legal counsel, and incorporating risk mitigation judgments by us

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

liability estimate described above and assuming the continued viability of all solvent insurance carriers.

Based upon the analysis of policy terms and other factors noted above by our legal counsel, and incorporating risk mitigation judgments by us where policy terms or other factors were not certain, our insurance consultants compiled a model indicating how our historical insurance policies would respond to varying levels of asbestos settlement and defense costs and the allocation of such costs between such insurers and us.

where policy terms or other factors were not certain, our insurance consultants compiled a model indicating how our historical insurance policies would respond to varying levels of asbestos settlement and defense costs and the allocation of such costs between such insurers and us.

Using the estimated liability as of December 31, 2019 (for claims filed or expected to be filed through 2059), the insurance consultant’s model forecasted that approximately 14 % of the liability would be reimbursed by our insurers.

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The asset is reduced as reimbursements and other payments from insurers are received.

The asset was $ 70 million and $ 74 million as of March 31, 2022 and December 31, 2021, respectively.

The asset was $ 65 million and $ 74 million as of June 30, 2022 and December 31, 2021, respectively.

We review the estimated reimbursement rate with our insurance consultants on a periodic basis in order to confirm overall consistency with our established reserves.

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Generally, third party specialists assist in the estimation of remediation costs.

The environmental remediation liability as of March 31, 2022 is substantially related to the former manufacturing site in Goodyear, Arizona (the “Goodyear Site”) discussed below.

The environmental remediation liability as of June 30, 2022 is substantially related to the former manufacturing site in Goodyear, Arizona (the “Goodyear Site”) discussed below.

On June 21, 2021, we completed the sale of substantially all of the property associated with what we have historically called the Goodyear Site for $ 8.7 million, retaining only a small parcel on which our remediation and treatment systems are located.

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(“UPI”), which became an indirect subsidiary in 1985 when we acquired UPI’s parent company, UniDynamics Corporation.

UPI manufactured explosive and pyrotechnic compounds,

UPI manufactured explosive and pyrotechnic compounds, including components for critical military programs, for the U.S.

government at the Goodyear Site from 1962 to 1993, under

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

including components for critical military programs, for the U.S.

government at the Goodyear Site from 1962 to 1993, under contracts with the Department of Defense and other government agencies and certain of their prime contractors.

contracts with the Department of Defense and other government agencies and certain of their prime contractors.

In 1990, the U.S.

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Groundwater extraction and treatment systems have been in operation at the Goodyear Site since 1994.

On July 26, 2006, we entered into a consent decree with the EPA with respect to the Goodyear Site providing for, among other things, a work plan for further investigation and remediation activities (inclusive of a supplemental remediation investigation and feasibility study).

On July 26, 2006, we entered a consent decree with the EPA with respect to the Goodyear Site providing for, among other things, a work plan for further investigation and remediation activities (inclusive of a supplemental remediation investigation and feasibility study).

During the third quarter of 2014, the EPA issued a Record of Decision (“ROD”) amendment permitting, among other things, additional source area remediation resulting in us recording a charge of $ 49.0 million, extending the accrued costs through 2022.

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Accordingly, in 2019, we recorded a pre-tax charge of $ 18.9 million, net of reimbursements, to extend our forecast period through 2027 and reflect our revised workplan.

The total estimated gross liability was $ 30.6 million and $ 32.3 million as of March 31, 2022 and December 31, 2021, respectively and as described below, a portion is reimbursable by the U.S.

The current portion of the total estimated liability was $ 7.8 million and $ 7.1 million as of March 31, 2022 and December 31, 2021, respectively, and represents our best estimate, in consultation with our technical advisors, of total remediation costs expected to be paid during the twelve-month period.

The total estimated gross liability was $ 27.1 million and $ 32.3 million as of June 30, 2022 and December 31, 2021, respectively and as described below, a portion is reimbursable by the U.S.

The current portion of the total estimated liability was $ 7.8 million and $ 7.1 million as of June 30, 2022 and December 31, 2021, respectively, and represents our best estimate, in consultation with our technical advisors, of total remediation costs expected to be paid during the twelve-month period.

It is not possible at this point to reasonably estimate the amount of any obligation in excess of our current accruals through the 2027 forecast period because of the aforementioned uncertainties, in particular, the continued significant changes in the Goodyear Site conditions and additional expectations of remediation activities experienced in recent years.

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Government reimburses us for 21 % of qualifying costs of investigation and remediation activities at the Goodyear Site.

As of March 31, 2022 and December 31, 2021, we recorded a receivable of $ 6.6 million and $ 7.3 million, respectively, for the expected reimbursements from the U.S.

As of June 30, 2022 and December 31, 2021, we recorded a receivable of $ 6.6 million and $ 7.3 million, respectively, for the expected reimbursements from the U.S.

Government in respect of the aggregate liability as at that date.

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The first phase of the mediation, involving certain former munitions or ordnance storage areas, began in November 2017, but did not result in a multi-party settlement agreement.

Subsequently, we entered into discussions directly with GD-OTS and reached an agreement, as of July 13, 2021, to contribute toward GD-OTS’s past RI-FS costs associated with the first-phase areas for an immaterial amount.

Subsequently, we entered discussions directly with GD-OTS and reached an agreement, as of July 13, 2021, to contribute toward GD-OTS’s past RI-FS costs associated with the first-phase areas for an immaterial amount.

We have also agreed to pay a modest percentage of future RI-FS costs and the United States’ claimed past response costs relative to the first-phase areas, a sum that we expect in the aggregate to be immaterial.

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Government, is likely to be completed.

It is not possible at this time to reasonably estimate the total amount of any obligation for remediation of the Crab Orchard Site as a whole because the allocation among PRPs, selection of remediation alternatives, and concurrence of regulatory authorities have not yet advanced to the stage where a reasonable estimate can be made.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

and concurrence of regulatory authorities have not yet advanced to the stage where a reasonable estimate can be made.

We notified our insurers of this potential liability and have obtained defense and indemnity coverage, subject to reservations of rights, under certain of our insurance policies.

notified our insurers of this potential liability and have obtained defense and indemnity coverage, subject to reservations of rights, under certain of our insurance policies.

Roseland, NJ Site

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If there is a reasonable possibility that a loss or additional loss may have been incurred for such matters, we disclose the estimate of the amount of loss or range of loss, disclose that the amount is immaterial, or disclose that an estimate of loss cannot be made, as applicable.

We believe that as of March 31, 2022, there was no reasonable possibility that a material loss, or any additional material losses, may have been incurred for such matters, and that adequate provision has been made in our financial statements for the potential impact of all such matters.

We believe that as of June 30, 2022, there was no reasonable possibility that a material loss, or any additional material losses, may have been incurred for such matters, and that adequate provision has been made in our financial statements for the potential impact of all such matters.

Note 11 - Financing

Our debt consisted of the following:

(in millions) March 31,

(in millions) June 30,

2022 December 31,

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Total long-term debt $ 842.9 $ 842.4

Debt discounts and debt issuance costs totaled $ 5.6 million and $ 5.7 million as of each of March 31, 2022 and December 31, 2021, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of the debt table above.

Debt discounts and debt issuance costs totaled $ 5.5 million and $ 5.7 million as of each of June 30, 2022 and December 31, 2021, respectively, and have been netted against the aggregate principal amounts of the related debt in the components of the debt table above.

Commercial paper program - On July 28, 2021, we increased the size of the commercial paper program (“CP Program”) to permit the issuance of short-term, unsecured commercial paper notes in an aggregate principal amount not to exceed $ 650 million at any time outstanding.

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The notes rank at least pari passu with all of our other unsecured and unsubordinated indebtedness.

As of March 31, 2022 and December 31, 2021, there was $ 104.0 million and $ 0.0 million , respectively, of outstanding borrowings under the commercial paper program.

As of June 30, 2022 and December 31, 2021, there was $ 119.4 million and $ 0.0 million , respectively, of outstanding borrowings under the commercial paper program.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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We do not hold or issue derivative financial instruments for trading or speculative purposes.

Foreign exchange contracts not designated as hedging instruments had a notional value of $ 94.0 million and $ 3.0 million as of March 31, 2022 and December 31, 2021, respectively.

Foreign exchange contracts not designated as hedging instruments had a notional value of $ 87.5 million and $ 3.0 million as of June 30, 2022 and December 31, 2021, respectively.

Our derivative assets and liabilities include foreign exchange contract derivatives that are measured at fair value using internal models based on observable market inputs such as forward rates and interest rates.

Based on these inputs, the derivatives are classified within Level 2 of the valuation hierarchy.

Such derivative receivable amounts are recorded within “Other current assets” on our Condensed Consolidated Balance Sheets and were $ 1.6 million and $ 0.0 million as of March 31, 2022 and December 31, 2021, respectively.

Such derivative liability amounts are recorded within “Accrued liabilities” on our Condensed Consolidated Balance Sheets and were $ 0.0 million and less than $ 0.1 million as of March 31, 2022 and December 31, 2021, respectively.

Such derivative receivable amounts are recorded within “Other current assets” on our Condensed Consolidated Balance Sheets and were $ 7.9 million and $ 0.0 million as of June 30, 2022 and December 31, 2021, respectively.

Available-for-sale securities consist of rabbi trust investments that hold marketable securities for the benefit of participants in our Supplemental Executive Retirement Plan.

These investments are measured at fair value using quoted market prices in an active market and are therefore classified within Level 1 of the valuation hierarchy.

The fair value of available-for-sale securities was $ 0.6 million and $ 1.6 million as of March 31, 2022 and December 31, 2021, respectively.

The fair value of available-for-sale securities was $ 0.5 million and $ 1.6 million as of June 30, 2022 and December 31, 2021, respectively.

These investments are included in “Other assets” on our Condensed Consolidated Balance Sheets.

Long-term debt rates currently available to us for debt with similar terms and remaining maturities are used to estimate the fair value for debt issues that are not quoted on an exchange.

The estimated fair value of total debt, measured using Level 2 inputs, was $ 881.2 million and $ 984.9 million as of March 31, 2022 and December 31, 2021, respectively.

The estimated fair value of total debt, measured using Level 2 inputs, was $ 825.5 million and $ 984.9 million as of June 30, 2022 and December 31, 2021, respectively.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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We expect to complete the program in the fourth quarter of 2023.

There were no charges recorded in the three month periods ended June 30, 2022 or 2021 related to these actions.

2017 Repositioning - In the fourth quarter of 2017, we initiated broad-based repositioning actions designed to improve profitability.

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We expect to complete the program in the first quarter of 2023.

We recorded $ 0.0 and $( 0.2 ) in the three month periods ended June 30, 2022 and 2021 related to these actions.

Restructuring (gains) charges, net

We recorded restructuring (gains) charges, net which are reflected in the Condensed Consolidated Statements of Operations, as follows:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

(in millions) 2022 2021 2022 2021

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Total restructuring (gains) charges, net $ — $ ( 0.2 ) $ — $ ( 13.3 )

The following table summarizes our restructuring gains, net by program, cost type and segment for the three months ended March 31, 2022 and 2021:

Three months ended

March 31, 2022 Three months ended

March 31, 2021

The following table summarizes our restructuring gains, net by program, cost type and segment for the six months ended June 30, 2022 and 2021:

Six Months Ended June 30,2022 Six Months Ended June 30,2021

(in millions) Severance Other Total Severance Other Total

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$ — $ — $ — $ — $ ( 12.7 ) $ ( 12.7 )

Payment & Merchandising Technologies — — — ( 0.2 ) — ( 0.2 )

2017 Repositioning $ — $ — $ — $ ( 0.2 ) $ ( 12.7 ) $ ( 12.9 )

2 unchanged sentences

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the cumulative restructuring costs, net incurred through March 31, 2022.

We do not expect to incur additional facility consolidation costs to complete these actions as of March 31, 2022.

The following table summarizes the cumulative restructuring costs, net incurred through June 30, 2022.

We do not expect to incur additional facility consolidation costs to complete these actions as of June 30, 2022.

Cumulative Restructuring Costs, Net

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Utilization ( 6.1 ) ( 0.6 ) ( 6.7 )

Balance at March 31, 2022 (a)

Balance at June 30, 2022 (a)

$ 5.4 $ 0.1 $ 5.5

(a) Included within Accrued Liabilities in the Condensed Consolidated Balance Sheets

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 15- Subsequent Event

On April 8, 2022, the Company entered into an agreement to sell Crane Supply for CAD 380 million on a cash-free and debt-free basis.

The sale is subject to customary closing conditions and regulatory approvals and is expected to close in the second quarter of 2022.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements