10-Q 1 b-20220930.htm 10-Q b-20220930
FALSE2022Q3000000998412/313000000099842022-01-012022-09-3000000099842022-10-26xbrli:shares00000099842022-07-012022-09-30iso4217:USD00000099842021-07-012021-09-3000000099842021-01-012021-09-30iso4217:USDxbrli:shares00000099842022-09-3000000099842021-12-3100000099842020-12-3100000099842021-09-300000009984us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2022-09-300000009984us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-09-300000009984us-gaap:OtherNoncurrentAssetsMember2022-09-300000009984us-gaap:OtherNoncurrentAssetsMember2021-09-300000009984b:EngineeredComponentsProductsMemberb:IndustrialMember2022-07-012022-09-300000009984b:EngineeredComponentsProductsMemberb:AerospaceMember2022-07-012022-09-300000009984b:EngineeredComponentsProductsMember2022-07-012022-09-300000009984b:EngineeredComponentsProductsMemberb:IndustrialMember2021-07-012021-09-300000009984b:EngineeredComponentsProductsMemberb:AerospaceMember2021-07-012021-09-300000009984b:EngineeredComponentsProductsMember2021-07-012021-09-300000009984b:MoldingSolutionsProductsMemberb:IndustrialMember2022-07-012022-09-300000009984b:MoldingSolutionsProductsMemberb:AerospaceMember2022-07-012022-09-300000009984b:MoldingSolutionsProductsMember2022-07-012022-09-300000009984b:MoldingSolutionsProductsMemberb:IndustrialMember2021-07-012021-09-300000009984b:MoldingSolutionsProductsMemberb:AerospaceMember2021-07-012021-09-300000009984b:MoldingSolutionsProductsMember2021-07-012021-09-300000009984b:IndustrialMemberb:ForceMotionControlProductsMember2022-07-012022-09-300000009984b:AerospaceMemberb:ForceMotionControlProductsMember2022-07-012022-09-300000009984b:ForceMotionControlProductsMember2022-07-012022-09-300000009984b:IndustrialMemberb:ForceMotionControlProductsMember2021-07-012021-09-300000009984b:AerospaceMemberb:ForceMotionControlProductsMember2021-07-012021-09-300000009984b:ForceMotionControlProductsMember2021-07-012021-09-300000009984b:IndustrialMemberb:AutomationProductsMember2022-07-012022-09-300000009984b:AerospaceMemberb:AutomationProductsMember2022-07-012022-09-300000009984b:AutomationProductsMember2022-07-012022-09-300000009984b:IndustrialMemberb:AutomationProductsMember2021-07-012021-09-300000009984b:AerospaceMemberb:AutomationProductsMember2021-07-012021-09-300000009984b:AutomationProductsMember2021-07-012021-09-300000009984b:IndustrialMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2022-07-012022-09-300000009984b:AerospaceMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2022-07-012022-09-300000009984b:AerospaceOriginalEquipmentManufacturingProductsMember2022-07-012022-09-300000009984b:IndustrialMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2021-07-012021-09-300000009984b:AerospaceMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2021-07-012021-09-300000009984b:AerospaceOriginalEquipmentManufacturingProductsMember2021-07-012021-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:IndustrialMember2022-07-012022-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:AerospaceMember2022-07-012022-09-300000009984b:AerospaceAftermarketProductsandServicesMember2022-07-012022-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:IndustrialMember2021-07-012021-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:AerospaceMember2021-07-012021-09-300000009984b:AerospaceAftermarketProductsandServicesMember2021-07-012021-09-300000009984b:IndustrialMember2022-07-012022-09-300000009984b:AerospaceMember2022-07-012022-09-300000009984b:IndustrialMember2021-07-012021-09-300000009984b:AerospaceMember2021-07-012021-09-300000009984b:IndustrialMembersrt:AmericasMember2022-07-012022-09-300000009984b:AerospaceMembersrt:AmericasMember2022-07-012022-09-300000009984srt:AmericasMember2022-07-012022-09-300000009984b:IndustrialMembersrt:AmericasMember2021-07-012021-09-300000009984b:AerospaceMembersrt:AmericasMember2021-07-012021-09-300000009984srt:AmericasMember2021-07-012021-09-300000009984srt:EuropeMemberb:IndustrialMember2022-07-012022-09-300000009984srt:EuropeMemberb:AerospaceMember2022-07-012022-09-300000009984srt:EuropeMember2022-07-012022-09-300000009984srt:EuropeMemberb:IndustrialMember2021-07-012021-09-300000009984srt:EuropeMemberb:AerospaceMember2021-07-012021-09-300000009984srt:EuropeMember2021-07-012021-09-300000009984srt:AsiaMemberb:IndustrialMember2022-07-012022-09-300000009984srt:AsiaMemberb:AerospaceMember2022-07-012022-09-300000009984srt:AsiaMember2022-07-012022-09-300000009984srt:AsiaMemberb:IndustrialMember2021-07-012021-09-300000009984srt:AsiaMemberb:AerospaceMember2021-07-012021-09-300000009984srt:AsiaMember2021-07-012021-09-300000009984b:OtherGeographicMarketMemberb:IndustrialMember2022-07-012022-09-300000009984b:OtherGeographicMarketMemberb:AerospaceMember2022-07-012022-09-300000009984b:OtherGeographicMarketMember2022-07-012022-09-300000009984b:OtherGeographicMarketMemberb:IndustrialMember2021-07-012021-09-300000009984b:OtherGeographicMarketMemberb:AerospaceMember2021-07-012021-09-300000009984b:OtherGeographicMarketMember2021-07-012021-09-300000009984b:EngineeredComponentsProductsMemberb:IndustrialMember2022-01-012022-09-300000009984b:EngineeredComponentsProductsMemberb:AerospaceMember2022-01-012022-09-300000009984b:EngineeredComponentsProductsMember2022-01-012022-09-300000009984b:EngineeredComponentsProductsMemberb:IndustrialMember2021-01-012021-09-300000009984b:EngineeredComponentsProductsMemberb:AerospaceMember2021-01-012021-09-300000009984b:EngineeredComponentsProductsMember2021-01-012021-09-300000009984b:MoldingSolutionsProductsMemberb:IndustrialMember2022-01-012022-09-300000009984b:MoldingSolutionsProductsMemberb:AerospaceMember2022-01-012022-09-300000009984b:MoldingSolutionsProductsMember2022-01-012022-09-300000009984b:MoldingSolutionsProductsMemberb:IndustrialMember2021-01-012021-09-300000009984b:MoldingSolutionsProductsMemberb:AerospaceMember2021-01-012021-09-300000009984b:MoldingSolutionsProductsMember2021-01-012021-09-300000009984b:IndustrialMemberb:ForceMotionControlProductsMember2022-01-012022-09-300000009984b:AerospaceMemberb:ForceMotionControlProductsMember2022-01-012022-09-300000009984b:ForceMotionControlProductsMember2022-01-012022-09-300000009984b:IndustrialMemberb:ForceMotionControlProductsMember2021-01-012021-09-300000009984b:AerospaceMemberb:ForceMotionControlProductsMember2021-01-012021-09-300000009984b:ForceMotionControlProductsMember2021-01-012021-09-300000009984b:IndustrialMemberb:AutomationProductsMember2022-01-012022-09-300000009984b:AerospaceMemberb:AutomationProductsMember2022-01-012022-09-300000009984b:AutomationProductsMember2022-01-012022-09-300000009984b:IndustrialMemberb:AutomationProductsMember2021-01-012021-09-300000009984b:AerospaceMemberb:AutomationProductsMember2021-01-012021-09-300000009984b:AutomationProductsMember2021-01-012021-09-300000009984b:IndustrialMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2022-01-012022-09-300000009984b:AerospaceMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2022-01-012022-09-300000009984b:AerospaceOriginalEquipmentManufacturingProductsMember2022-01-012022-09-300000009984b:IndustrialMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2021-01-012021-09-300000009984b:AerospaceMemberb:AerospaceOriginalEquipmentManufacturingProductsMember2021-01-012021-09-300000009984b:AerospaceOriginalEquipmentManufacturingProductsMember2021-01-012021-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:IndustrialMember2022-01-012022-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:AerospaceMember2022-01-012022-09-300000009984b:AerospaceAftermarketProductsandServicesMember2022-01-012022-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:IndustrialMember2021-01-012021-09-300000009984b:AerospaceAftermarketProductsandServicesMemberb:AerospaceMember2021-01-012021-09-300000009984b:AerospaceAftermarketProductsandServicesMember2021-01-012021-09-300000009984b:IndustrialMember2022-01-012022-09-300000009984b:AerospaceMember2022-01-012022-09-300000009984b:IndustrialMember2021-01-012021-09-300000009984b:AerospaceMember2021-01-012021-09-300000009984b:IndustrialMembersrt:AmericasMember2022-01-012022-09-300000009984b:AerospaceMembersrt:AmericasMember2022-01-012022-09-300000009984srt:AmericasMember2022-01-012022-09-300000009984b:IndustrialMembersrt:AmericasMember2021-01-012021-09-300000009984b:AerospaceMembersrt:AmericasMember2021-01-012021-09-300000009984srt:AmericasMember2021-01-012021-09-300000009984srt:EuropeMemberb:IndustrialMember2022-01-012022-09-300000009984srt:EuropeMemberb:AerospaceMember2022-01-012022-09-300000009984srt:EuropeMember2022-01-012022-09-300000009984srt:EuropeMemberb:IndustrialMember2021-01-012021-09-300000009984srt:EuropeMemberb:AerospaceMember2021-01-012021-09-300000009984srt:EuropeMember2021-01-012021-09-300000009984srt:AsiaMemberb:IndustrialMember2022-01-012022-09-300000009984srt:AsiaMemberb:AerospaceMember2022-01-012022-09-300000009984srt:AsiaMember2022-01-012022-09-300000009984srt:AsiaMemberb:IndustrialMember2021-01-012021-09-300000009984srt:AsiaMemberb:AerospaceMember2021-01-012021-09-300000009984srt:AsiaMember2021-01-012021-09-300000009984b:OtherGeographicMarketMemberb:IndustrialMember2022-01-012022-09-300000009984b:OtherGeographicMarketMemberb:AerospaceMember2022-01-012022-09-300000009984b:OtherGeographicMarketMember2022-01-012022-09-300000009984b:OtherGeographicMarketMemberb:IndustrialMember2021-01-012021-09-300000009984b:OtherGeographicMarketMemberb:AerospaceMember2021-01-012021-09-300000009984b:OtherGeographicMarketMember2021-01-012021-09-300000009984us-gaap:TransferredAtPointInTimeMember2022-01-012022-09-30xbrli:pure0000009984us-gaap:TransferredAtPointInTimeMember2022-07-012022-09-300000009984us-gaap:TransferredOverTimeMember2021-07-012021-09-3000000099842022-07-012022-09-3000000099842023-07-012022-09-300000009984us-gaap:CommonStockMember2021-12-310000009984us-gaap:AdditionalPaidInCapitalMember2021-12-310000009984us-gaap:TreasuryStockMember2021-12-310000009984us-gaap:RetainedEarningsMember2021-12-310000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000009984us-gaap:RetainedEarningsMember2022-01-012022-03-310000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-3100000099842022-01-012022-03-3100000099842022-04-012022-06-300000009984us-gaap:CommonStockMember2022-01-012022-03-310000009984us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310000009984us-gaap:TreasuryStockMember2022-01-012022-03-310000009984us-gaap:CommonStockMember2022-03-310000009984us-gaap:AdditionalPaidInCapitalMember2022-03-310000009984us-gaap:TreasuryStockMember2022-03-310000009984us-gaap:RetainedEarningsMember2022-03-310000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100000099842022-03-310000009984us-gaap:RetainedEarningsMember2022-04-012022-06-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-300000009984us-gaap:TreasuryStockMember2022-04-012022-06-300000009984us-gaap:CommonStockMember2022-04-012022-06-300000009984us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300000009984us-gaap:CommonStockMember2022-06-300000009984us-gaap:AdditionalPaidInCapitalMember2022-06-300000009984us-gaap:TreasuryStockMember2022-06-300000009984us-gaap:RetainedEarningsMember2022-06-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000000099842022-06-300000009984us-gaap:RetainedEarningsMember2022-07-012022-09-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000009984us-gaap:CommonStockMember2022-07-012022-09-300000009984us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300000009984us-gaap:TreasuryStockMember2022-07-012022-09-300000009984us-gaap:CommonStockMember2022-09-300000009984us-gaap:AdditionalPaidInCapitalMember2022-09-300000009984us-gaap:TreasuryStockMember2022-09-300000009984us-gaap:RetainedEarningsMember2022-09-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300000009984us-gaap:CommonStockMember2020-12-310000009984us-gaap:AdditionalPaidInCapitalMember2020-12-310000009984us-gaap:TreasuryStockMember2020-12-310000009984us-gaap:RetainedEarningsMember2020-12-310000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000009984us-gaap:RetainedEarningsMember2021-01-012021-03-310000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-3100000099842021-01-012021-03-3100000099842021-04-012021-06-300000009984us-gaap:CommonStockMember2021-01-012021-03-310000009984us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000009984us-gaap:TreasuryStockMember2021-01-012021-03-310000009984us-gaap:CommonStockMember2021-03-310000009984us-gaap:AdditionalPaidInCapitalMember2021-03-310000009984us-gaap:TreasuryStockMember2021-03-310000009984us-gaap:RetainedEarningsMember2021-03-310000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-3100000099842021-03-310000009984us-gaap:RetainedEarningsMember2021-04-012021-06-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-300000009984us-gaap:TreasuryStockMember2021-04-012021-06-300000009984us-gaap:CommonStockMember2021-04-012021-06-300000009984us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300000009984us-gaap:CommonStockMember2021-06-300000009984us-gaap:AdditionalPaidInCapitalMember2021-06-300000009984us-gaap:TreasuryStockMember2021-06-300000009984us-gaap:RetainedEarningsMember2021-06-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000000099842021-06-300000009984us-gaap:RetainedEarningsMember2021-07-012021-09-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000009984us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000009984us-gaap:CommonStockMember2021-07-012021-09-300000009984us-gaap:TreasuryStockMember2021-07-012021-09-300000009984us-gaap:CommonStockMember2021-09-300000009984us-gaap:AdditionalPaidInCapitalMember2021-09-300000009984us-gaap:TreasuryStockMember2021-09-300000009984us-gaap:RetainedEarningsMember2021-09-300000009984us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000009984us-gaap:StockCompensationPlanMember2022-07-012022-09-300000009984us-gaap:StockCompensationPlanMember2021-07-012021-09-300000009984us-gaap:StockCompensationPlanMember2022-01-012022-09-300000009984us-gaap:StockCompensationPlanMember2021-01-012021-09-300000009984us-gaap:EmployeeStockOptionMember2021-02-012021-02-280000009984us-gaap:RestrictedStockUnitsRSUMember2021-02-012021-02-280000009984us-gaap:PerformanceSharesMember2021-02-012021-02-280000009984us-gaap:PerformanceSharesMember2022-01-012022-09-300000009984srt:ChiefExecutiveOfficerMember2022-07-142022-07-140000009984us-gaap:ShareBasedCompensationAwardTrancheOneMembersrt:ChiefExecutiveOfficerMember2022-07-142022-07-140000009984us-gaap:ShareBasedCompensationAwardTrancheOneMembersrt:ChiefExecutiveOfficerMember2022-07-140000009984srt:ChiefExecutiveOfficerMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-07-142022-07-140000009984srt:ChiefExecutiveOfficerMemberus-gaap:ShareBasedCompensationAwardTrancheTwoMember2022-07-140000009984srt:ChiefExecutiveOfficerMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2022-07-142022-07-140000009984srt:ChiefExecutiveOfficerMemberus-gaap:ShareBasedCompensationAwardTrancheThreeMember2022-07-140000009984b:ShareBasedPaymentArrangementTrancheFourMembersrt:ChiefExecutiveOfficerMember2022-07-142022-07-140000009984b:ShareBasedPaymentArrangementTrancheFourMembersrt:ChiefExecutiveOfficerMember2022-07-140000009984b:IndustrialMember2021-12-310000009984b:AerospaceMember2021-12-310000009984b:IndustrialMember2022-09-300000009984b:AerospaceMember2022-09-300000009984srt:MaximumMemberb:RevenueSharingMember2022-01-012022-09-300000009984b:RevenueSharingMember2022-09-300000009984b:RevenueSharingMember2021-12-310000009984b:ComponentRepairProgramMembersrt:MaximumMember2022-01-012022-09-300000009984b:ComponentRepairProgramMember2022-09-300000009984b:ComponentRepairProgramMember2021-12-310000009984b:CustomerListsAndRelationshipsMembersrt:MinimumMember2022-01-012022-09-300000009984b:CustomerListsAndRelationshipsMembersrt:MaximumMember2022-01-012022-09-300000009984b:CustomerListsAndRelationshipsMember2022-09-300000009984b:CustomerListsAndRelationshipsMember2021-12-310000009984b:PatentsAndTechnologyMembersrt:MinimumMember2022-01-012022-09-300000009984b:PatentsAndTechnologyMembersrt:MaximumMember2022-01-012022-09-300000009984b:PatentsAndTechnologyMember2022-09-300000009984b:PatentsAndTechnologyMember2021-12-310000009984us-gaap:TrademarksAndTradeNamesMembersrt:MinimumMember2022-01-012022-09-300000009984us-gaap:TrademarksAndTradeNamesMembersrt:MaximumMember2022-01-012022-09-300000009984us-gaap:TrademarksAndTradeNamesMember2022-09-300000009984us-gaap:TrademarksAndTradeNamesMember2021-12-310000009984us-gaap:OtherIntangibleAssetsMembersrt:MaximumMember2022-01-012022-09-300000009984us-gaap:OtherIntangibleAssetsMember2022-09-300000009984us-gaap:OtherIntangibleAssetsMember2021-12-310000009984us-gaap:TradeNamesMember2022-09-300000009984us-gaap:TradeNamesMember2021-12-310000009984b:SixthAdmendmentMaturityFebruary2026AndNineThreePointSevenPercentSeniorNotesMember2022-09-300000009984us-gaap:LineOfCreditMember2022-09-300000009984us-gaap:LineOfCreditMember2021-12-310000009984us-gaap:SeniorNotesMemberb:ThreePointNineSevenPercentSeniorNotesMember2022-09-300000009984us-gaap:SeniorNotesMemberb:ThreePointNineSevenPercentSeniorNotesMember2021-12-310000009984b:LinesOfCreditAndOverdraftsMember2022-09-300000009984b:LinesOfCreditAndOverdraftsMember2021-12-310000009984b:OtherMember2022-09-300000009984b:OtherMember2021-12-310000009984us-gaap:SeniorNotesMemberb:ThreePointNineSevenPercentSeniorNotesMember2014-10-310000009984b:SixthAmendmentMaturityFebruary2022Memberus-gaap:LineOfCreditMember2020-10-080000009984b:SixthAmendmentMaturityFebruary2022AndThreePointNineSevenPercentSeniorNotesMemberb:LineOfCreditAndSeniorNotesMembersrt:MinimumMember2020-10-080000009984b:SixthAmendmentMaturityFebruary2022AndThreePointNineSevenPercentSeniorNotesMemberb:LineOfCreditAndSeniorNotesMember2020-10-080000009984b:SixthAmendmentMaturityFebruary2022AndThreePointNineSevenPercentSeniorNotesMemberb:LineOfCreditAndSeniorNotesMembersrt:MaximumMember2020-10-080000009984b:FifthAmendmentMaturityFebruary2022AndThreePointSevenPercentSeniorNotesMemberb:LineOfCreditAndSeniorNotesMember2020-10-070000009984b:SixthAdmendmentMaturityFebruary2026Memberus-gaap:LineOfCreditMember2021-02-100000009984b:SixthAmendmentMaturityFebruary2022Memberus-gaap:LineOfCreditMember2021-02-100000009984b:EuriborMemberb:SixthAmendmentMaturityFebruary2022Memberus-gaap:LineOfCreditMember2021-02-102021-02-100000009984b:SixthAdmendmentMaturityFebruary2026Memberb:EuriborMemberus-gaap:LineOfCreditMember2021-02-102021-02-100000009984us-gaap:BaseRateMemberb:SixthAmendmentMaturityFebruary2022Memberus-gaap:LineOfCreditMember2021-02-102021-02-100000009984b:SixthAdmendmentMaturityFebruary2026Memberus-gaap:BaseRateMemberus-gaap:LineOfCreditMember2021-02-102021-02-100000009984b:EuriborMemberb:SixthAdmendmentMaturityFebruary2026MulticurrencyBorrowingsMemberus-gaap:LineOfCreditMember2021-02-102021-02-100000009984b:EuriborMemberb:SixthAdmendmentMaturityFebruary2026MulticurrencyBorrowingsMembersrt:MinimumMemberus-gaap:LineOfCreditMember2021-02-102021-02-100000009984b:EuriborMemberb:SixthAdmendmentMaturityFebruary2026MulticurrencyBorrowingsMembersrt:MaximumMemberus-gaap:LineOfCreditMember2021-02-102021-02-100000009984b:SixthAdmendmentMaturityFebruary2026Membersrt:MaximumMemberus-gaap:LineOfCreditMember2021-02-100000009984us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMemberb:AmendmentNo1ToAmendedCreditAgreementMembersrt:MinimumMemberus-gaap:LineOfCreditMember2022-04-062022-04-060000009984us-gaap:SecuredOvernightFinancingRateSofrOvernightIndexSwapRateMembersrt:MaximumMemberb:AmendmentNo1ToAmendedCreditAgreementMemberus-gaap:LineOfCreditMember2022-04-062022-04-060000009984us-gaap:BaseRateMemberb:AmendmentNo1ToAmendedCreditAgreementMembersrt:MinimumMemberus-gaap:LineOfCreditMember2022-04-062022-04-060000009984us-gaap:BaseRateMembersrt:MaximumMemberb:AmendmentNo1ToAmendedCreditAgreementMemberus-gaap:LineOfCreditMember2022-04-062022-04-060000009984b:AmendmentNo1ToAmendedCreditAgreementMembersrt:MinimumMemberus-gaap:LineOfCreditMember2022-04-062022-04-060000009984srt:MaximumMemberb:AmendmentNo1ToAmendedCreditAgreementMemberus-gaap:LineOfCreditMember2022-04-062022-04-060000009984b:AmendmentNo1ToAmendedCreditAgreementMemberus-gaap:LineOfCreditMember2022-04-062022-04-060000009984b:SixthAmendmentMaturityFebruary2022AndThreePointNineSevenPercentSeniorNotesMember2021-12-310000009984b:SixthAdmendmentMaturityFebruary2026AndNineThreePointSevenPercentSeniorNotesMemberus-gaap:SeniorNotesMember2022-09-300000009984b:SixthAdmendmentMaturityFebruary2026AndNineThreePointSevenPercentSeniorNotesMembercurrency:EUR2022-09-300000009984b:SixthAmendmentMaturityFebruary2022AndThreePointNineSevenPercentSeniorNotesMembercurrency:EUR2021-12-31iso4217:EUR0000009984b:SixthAdmendmentMaturityFebruary2026Memberus-gaap:LineOfCreditMember2022-09-300000009984us-gaap:LineOfCreditMember2022-09-300000009984us-gaap:BankOverdraftsMember2022-09-300000009984us-gaap:BankOverdraftsMember2021-12-310000009984us-gaap:BankOverdraftsMember2022-01-012022-09-300000009984us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2017-04-28b:Bank0000009984us-gaap:InterestRateContractMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2017-04-280000009984us-gaap:InterestRateContractMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-03-240000009984us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-03-240000009984us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-04-300000009984us-gaap:InterestRateContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-09-300000009984us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-07-012022-09-300000009984us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-07-012021-09-300000009984us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2022-01-012022-09-300000009984us-gaap:ForeignExchangeContractMemberus-gaap:OtherNonoperatingIncomeExpenseMember2021-01-012021-09-300000009984us-gaap:ForeignExchangeContractMember2022-01-012022-09-300000009984us-gaap:ForeignExchangeContractMember2021-01-012021-09-300000009984us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300000009984us-gaap:FairValueInputsLevel1Member2022-09-300000009984us-gaap:FairValueInputsLevel2Member2022-09-300000009984us-gaap:FairValueInputsLevel3Member2022-09-300000009984us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310000009984us-gaap:FairValueInputsLevel1Member2021-12-310000009984us-gaap:FairValueInputsLevel2Member2021-12-310000009984us-gaap:FairValueInputsLevel3Member2021-12-310000009984srt:MaximumMember2022-01-012022-09-300000009984us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300000009984us-gaap:PensionPlansDefinedBenefitMember2021-07-012021-09-300000009984us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300000009984us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-09-300000009984us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-012022-09-300000009984us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-012021-09-300000009984us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-09-300000009984us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-09-3000000099842021-01-012021-12-310000009984country:CN2021-11-302021-11-300000009984country:CN2021-12-012021-12-3100000099842021-01-012021-01-010000009984us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-12-310000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310000009984us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310000009984us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-01-012022-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300000009984us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-09-300000009984us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2022-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300000009984us-gaap:AccumulatedTranslationAdjustmentMember2022-09-300000009984us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-310000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000009984us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000009984us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-09-300000009984us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300000009984us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300000009984us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300000009984us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000009984us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-012021-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000009984us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000009984us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceAttributableToNoncontrollingInterestMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000009984us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMemberus-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300000009984us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-30b:Segment0000009984b:IndustrialMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000009984b:IndustrialMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000009984b:IndustrialMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000009984b:IndustrialMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000009984b:AerospaceMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300000009984b:AerospaceMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300000009984b:AerospaceMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300000009984b:AerospaceMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300000009984us-gaap:IntersegmentEliminationMember2022-07-012022-09-300000009984us-gaap:IntersegmentEliminationMember2021-07-012021-09-300000009984us-gaap:IntersegmentEliminationMember2022-01-012022-09-300000009984us-gaap:IntersegmentEliminationMember2021-01-012021-09-300000009984b:IndustrialMemberus-gaap:OperatingSegmentsMember2022-09-300000009984b:IndustrialMemberus-gaap:OperatingSegmentsMember2021-12-310000009984b:AerospaceMemberus-gaap:OperatingSegmentsMember2022-09-300000009984b:AerospaceMemberus-gaap:OperatingSegmentsMember2021-12-310000009984us-gaap:CorporateNonSegmentMember2022-09-300000009984us-gaap:CorporateNonSegmentMember2021-12-310000009984b:A2020ActionsMember2020-06-012020-06-300000009984b:A2020ActionsMember2022-09-300000009984b:A2020ActionsMember2021-12-310000009984b:A2020ActionsMember2022-01-012022-09-300000009984b:A2021ActionsMember2021-06-012021-06-300000009984b:A2021ActionsMember2022-07-012022-09-300000009984b:A2022ActionsMember2022-07-26b:site0000009984b:A2022ActionsMember2022-07-012022-07-310000009984b:A2022ActionsMember2022-09-300000009984b:A2022ActionsMembersrt:ScenarioForecastMember2022-12-310000009984b:A2022ActionsMembersrt:ScenarioForecastMember2023-12-310000009984b:A2022ActionsMember2021-12-310000009984b:A2022ActionsMember2022-01-012022-09-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2022
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission file number 1-4801

b-20220930_g1.jpg
BARNES GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 06-0247840
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
  
123 Main Street 
Bristol
Connecticut06010
(Address of Principal Executive Offices) (Zip Code)
(860) 583-7070
Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Trading Symbol Name of Each Exchange on Which Registered
Common Stock, par value $0.01 per share B New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨ 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  x   No  ¨ 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.   
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
                   
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).YesNo
The registrant had outstanding 50,568,839 shares of common stock as of October 26, 2022.
1


Barnes Group Inc.
Index to Form 10-Q
For the Quarterly Period Ended September 30, 2022
 
 Page
Part I.FINANCIAL INFORMATION
  
Item 1.
 
 
 
 
 
  
Item 2.
  
Item 3.
  
Item 4.
  
Part II.OTHER INFORMATION
Item 1.
Item 1A.
Risk Factors
Item 2.
Item 3.
Item 4.
Item 5.
  
Item 6.
  
 
 


This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. See “FORWARD-LOOKING STATEMENTS” under Part I - Item 2 “Management's Discussion and Analysis of Financial Condition and Results of Operations” of this Quarterly Report on Form 10-Q.

2


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Net sales$314,744 $325,059 $948,395 $947,846 
 
Cost of sales208,649 205,079 628,593 602,943 
Selling and administrative expenses76,059 76,271 218,646 230,271 
Goodwill impairment charge  68,194  
 284,708 281,350 915,433 833,214 
Operating income30,036 43,709 32,962 114,632 
 
Interest expense3,357 4,027 10,249 12,443 
Other expense (income), net2,423 1,217 3,650 3,952 
Income before income taxes24,256 38,465 19,063 98,237 
Income taxes7,277 10,602 21,152 26,501 
Net income (loss)$16,979 $27,863 $(2,089)$71,736 
 
Per common share:
Basic$0.33 $0.55 $(0.04)$1.41 
Diluted0.33 0.55 (0.04)1.40 
Weighted average common shares outstanding:
Basic50,919,955 50,905,202 50,981,874 50,925,702 
Diluted51,059,906 51,060,684 50,981,874 51,085,509 

See accompanying notes.

3


BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME
(Dollars in thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2022202120222021
Net income (loss)$16,979 $27,863 $(2,089)$71,736 
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on hedging activities, net of tax (1)
2,391 62 5,793 (488)
Foreign currency translation adjustments, net of tax (2)
(63,433)(25,383)(145,238)(51,669)
Defined benefit pension and other postretirement benefits, net of tax (3)
(3,737)3,640 2,114 10,165 
Total other comprehensive loss, net of tax(64,779)(21,681)(137,331)(41,992)
Total comprehensive (loss) income$(47,800)$6,182 $(139,420)$29,744 

(1) Net of tax of $751 and $47 for the three months ended September 30, 2022 and 2021, respectively, and $1,827 and $(106) for the nine months ended September 30, 2022 and 2021, respectively.

(2) Net of tax of $0 and $0 for the three and nine months ended September 30, 2022 and 2021, respectively.

(3) Net of tax of $(1,383) and $972 for the three months ended September 30, 2022 and 2021, respectively, and $233 and $3,033 for the nine months ended September 30, 2022 and 2021, respectively.

See accompanying notes.






























4



BARNES GROUP INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
(Unaudited)
September 30, 2022December 31, 2021
Assets
Current assets  
Cash and cash equivalents$71,585 $102,860 
Accounts receivable, less allowances (2022 - $4,627; 2021 - $5,625)
260,163 262,257 
Inventories268,854 239,655 
Prepaid expenses and other current assets81,472 75,437 
Total current assets682,074 680,209 
 
Deferred income taxes21,732 21,976 
Property, plant and equipment878,992 904,895 
Less accumulated depreciation(570,038)(563,433)
308,954 341,462 
Goodwill784,952 955,370 
Other intangible assets, net436,683 500,246 
Other assets76,659 77,557 
Total assets$2,311,054 $2,576,820 
 
Liabilities and Stockholders' Equity
Current liabilities
Notes and overdrafts payable$ $1,900 
Accounts payable136,485 131,076 
Accrued liabilities145,898 175,583 
Long-term debt - current1,339 1,835 
Total current liabilities283,722 310,394 
 
Long-term debt556,354 599,932 
Accrued retirement benefits73,088 76,784 
Deferred income taxes56,100 66,704 
Long-term tax liability39,086 52,114 
Other liabilities35,648 42,126 
 
Commitments and contingencies (Note 15)
Stockholders' equity
Common stock - par value $0.01 per share
Authorized: 150,000,000 shares
Issued: at par value (2022 - 64,448,650 shares; 2021 - 64,343,582 shares)
644 643 
Additional paid-in capital526,367 516,562 
Treasury stock, at cost (2022 - 13,881,687 shares; 2021 - 13,658,483 shares)
(531,181)(523,642)
Retained earnings1,560,395 1,587,041 
Accumulated other non-owner changes to equity(289,169)(151,838)
Total stockholders' equity1,267,056 1,428,766 
Total liabilities and stockholders' equity$2,311,054 $2,576,820 

See accompanying notes.
5


BARNES GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
Nine Months Ended
September 30,
20222021
Operating activities:  
Net (loss) income$(2,089)$71,736 
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization69,022 68,004 
Loss (gain) on disposition of property, plant and equipment14 (414)
Stock compensation expense9,547 9,212 
Non-cash goodwill impairment charge68,194  
Changes in assets and liabilities:
Accounts receivable(17,923)(15,649)
Inventories(40,428)(5,582)
Prepaid expenses and other current assets(13,310)(7,205)
Accounts payable10,509 17,827 
Accrued liabilities(28,637)(1,051)
Deferred income taxes(4,350)(7,052)
Long-term retirement benefits(660)2,308 
Long-term tax liability(6,948)(6,949)
 Other521 2,605 
Net cash provided by operating activities43,462 127,790 
Investing activities:
Proceeds from disposition of property, plant and equipment104 1,204 
Capital expenditures(21,655)(26,735)
Other(2,168)2,107 
Net cash used by investing activities(23,719)(23,424)
Financing activities:
Net change in other borrowings(941)(226)
Payments on long-term debt(80,777)(73,081)
Proceeds from the issuance of long-term debt85,082 25,000 
Proceeds from the issuance of common stock338 464 
Common stock repurchases(6,721)(5,229)
Dividends paid(24,282)(24,293)
Withholding taxes paid on stock issuances(818)(1,356)
Other (Note 9)(18,548)(9,835)
Net cash used by financing activities(46,667)(88,556)
Effect of exchange rate changes on cash flows(9,467)(2,923)
(Decrease) increase in cash, cash equivalents and restricted cash(36,391)12,887 
Cash, cash equivalents and restricted cash at beginning of period111,909 91,468 
Cash, cash equivalents and restricted cash at end of period75,518 104,355 
Less: Restricted cash, included in Prepaid expenses and other current assets(1,976)(6,239)
Less: Restricted cash, included in Other assets(1,957)(4,641)
Cash and cash equivalents at end of period$71,585 $93,475 


See accompanying notes.
6


BARNES GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All dollar amounts included in the notes are stated in thousands except per share data)
(Unaudited)

1. Basis of Presentation

The accompanying unaudited consolidated balance sheet and the related unaudited consolidated statements of income, comprehensive income and cash flows have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements do not include all information and notes required by accounting principles generally accepted in the United States of America for complete financial statements. The balance sheet as of December 31, 2021 has been derived from the 2021 financial statements of Barnes Group Inc. (the "Company"). For additional information, please refer to the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2021. In the opinion of management, all adjustments, including normal recurring accruals considered necessary for a fair statement of the results, have been included. Operating results for the nine-month period ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

The COVID-19 pandemic ("COVID-19") has resulted in a disruption in business activities worldwide and has caused weakened economic conditions, both in the United States and abroad. COVID-19 has had, and may continue to have, a significant negative impact on the Company's ongoing operations and the end markets in which it serves. The Company has assessed the impacts on its accounting estimates, assumptions and disclosures.

2. Recent Accounting Standards

The Financial Accounting Standards Board ("FASB") establishes changes to accounting principles under U.S. generally accepted accounting principles ("US GAAP") through the use of Accounting Standards Updates ("ASUs") to the FASB's Accounting Standards Codification. The Company evaluates the applicability and potential impacts of recent ASUs on its Consolidated Financial Statements and related disclosures.

Recently Adopted Accounting Standards

In December 2019, the FASB amended its guidance related to income taxes. The amended guidance simplifies the accounting for income taxes, eliminating certain exceptions to the general income tax principles, in an effort to reduce the cost and complexity of application. The amended guidance is effective for annual periods beginning after December 15, 2020, and interim periods within those reporting periods. Early adoption was permitted in any interim or annual period. The guidance requires application on either a prospective, retrospective or modified retrospective basis, contingent on the income tax exception being applied. The Company adopted this guidance, on a prospective basis, on January 1, 2021 and it did not have a material impact on the Company's Consolidated Financial Statements.

Recently Issued Accounting Standards

The United Kingdom's Financial Conduct Authority, which regulates the London Interbank Offered Rate (“LIBOR”), announced its intent to phase out the use of LIBOR by December 31, 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, identified the Secured Overnight Financing Rate (“SOFR”) as its preferred benchmark alternative to U.S. dollar LIBOR. Published by the Federal Reserve Bank of New York, SOFR represents a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is calculated based on directly observable U.S. Treasury-backed repurchase transactions. In March 2020, in response to this transition, the FASB issued guidance related to this rate reform, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued by reference rate reform, and addresses operational issues likely to arise in modifying contracts to replace discontinued reference rates with new rates. In January 2021, the FASB issued further clarifying guidance regarding derivatives, as it relates to this transition. The guidance is effective through December 31, 2022. The Company’s Amended Credit Agreement (Note 8) and corresponding interest rate Swaps (Note 9) each mature in February 2026. In March 2021, the Intercontinental Exchange Benchmark Association announced that it will extend the publication of overnight, 1, 3, 6 and 12 month LIBOR rates until June 30, 2023, while ceasing publication of all other LIBOR rates including 1 week and 2 month rates. The Company's Amended Credit Agreement was further amended in October 2021 and in April 2022 to address the replacement of LIBOR via the LIBOR Transition Agreement and Amendment No. 1, respectively (see Note 8), with SOFR. The Company's corresponding interest rate Swaps were amended in May 2022 to address the replacement of
7


LIBOR. As a result of the Company's contract amendments to address the replacement of LIBOR, the Company does not anticipate a material impact on our business, financial condition, results of operations or cash flow as a result of this change.

In October 2021, the FASB amended its guidance related to business combinations. The amended guidance requires entities to recognize and measure contract assets and contract liabilities acquired in business combinations on the acquisition date in accordance with Accounting Standards Codification 606, Revenue from Contracts with Customers. The new guidance is effective on a prospective basis for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022, with early adoption permitted. The Company is currently evaluating the amended guidance as the guidance will be applicable to future acquisitions.

In August 2022, the U.S. government enacted tax legislation commonly referred to as the Inflation Reduction Act of 2022 (“IRA”) into law. The IRA will impose a 1% excise tax on the fair market value of certain stock repurchased by a public traded company after December 31, 2022 and restored and modified certain tax-related energy incentives. The Company does not anticipate a material impact on our business, financial condition, results of operations or cash flow as a result of this change.

In September 2022, the FASB amended its guidance related to supplier finance programs. The amended guidance requires additional disclosures surrounding the use of supplier finance programs to purchase goods or services including disclosing the key terms of the programs, the amount of obligations outstanding at the end of the reporting period, and a roll-forward of those obligations. The new guidance, except the amendment on roll-forward information, is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The amendment on roll-forward information is effective for fiscal years beginning after December 15, 2023. Early adoption is permitted. The Company is currently evaluating the impact that this amended guidance will have on the Company's Financial Statements.

3. Revenue

The Company is a global provider of highly engineered products, differentiated industrial technologies, and innovative solutions, serving a wide range of end markets and customers. Its specialized products and services are used in far-reaching applications in healthcare, automation, packaging, aerospace, mobility and manufacturing.

Revenue is recognized by the Company when control of the product or solution is transferred to the customer. Control is generally transferred when products are shipped or delivered to customers, title is transferred, the significant risks and rewards of ownership have transferred, and the Company has rights to payment and the rewards of ownership pass to the customer. Customer acceptance may also be a factor in determining whether control of the product has transferred. Although revenue is generally recognized at a point in time, a certain portion of the Company's businesses with customized products or contracts in which the Company performs work on customer-owned assets requires the use of an over-time recognition model as certain contracts meet one or more of the established criteria pursuant to the accounting guidance. Also, service revenue is recognized as control transfers, which is concurrent with the services being performed.

8


The following table presents the Company's revenue disaggregated by products and services, and geographic regions, by segment:
Three Months Ended
September 30, 2022
Three Months Ended
September 30, 2021
IndustrialAerospaceTotal CompanyIndustrialAerospaceTotal Company
Products and Services
Engineered Components Products$49,286 $ $49,286 $47,217 $ $47,217 
Molding Solutions Products97,243  97,243 119,956  119,956 
Force & Motion Control Products44,241  44,241 47,534  47,534 
Automation Products13,187  13,187 16,841  16,841 
Aerospace Original Equipment Manufacturing Products 65,229 65,229  64,058 64,058 
Aerospace Aftermarket Products and Services 45,558 45,558  29,453 29,453 
$203,957 $110,787 $314,744 $231,548 $93,511 $325,059 
Geographic Regions (A)
Americas$96,201 $78,535 $174,736 $90,902 $70,231 $161,133 
Europe65,637 19,859 85,496 83,255 16,002 99,257 
Asia40,995 10,888 51,883 56,370 6,586 62,956 
Rest of World1,124 1,505 2,629 1,021 692 1,713 
$203,957 $110,787 $314,744 $231,548 $93,511 $325,059 
(A) Sales by geographic region are based on the location to which the product is shipped and services are delivered.

Nine Months Ended
September 30, 2022
Nine Months Ended
September 30, 2021
IndustrialAerospaceTotal CompanyIndustrialAerospaceTotal Company
Products and Services
Engineered Components Products$144,537 $ $144,537 $140,932 $ $140,932 
Molding Solutions Products301,488  301,488 351,115  351,115 
Force & Motion Control Products137,584  137,584 141,512  141,512 
Automation Products44,136  44,136 52,648  52,648 
Aerospace Original Equipment Manufacturing Products 200,360 200,360  180,571 180,571 
Aerospace Aftermarket Products and Services 120,290 120,290  81,068 81,068 
$627,745 $320,650 $948,395 $686,207 $261,639 $947,846 
Geographic Regions (A)
Americas$271,176 $231,798 $502,974 $266,798 $194,878 $461,676 
Europe222,776 58,343 281,119 262,023 43,416 305,439 
Asia129,484 26,553 156,037 153,876 21,329 175,205 
Rest of World4,309 3,956 8,265 3,510 2,016 5,526 
$627,745 $320,650 $948,395 $686,207 $261,639 $947,846 
(A) Sales by geographic region are based on the location to which the product is shipped and services are delivered.

Revenue from products and services transferred to customers at a point in time accounted for approximately 80 percent of total revenue for the three and nine month periods ended September 30, 2022 and September 30, 2021. A majority of revenue within the Industrial segment and Aerospace Original Equipment Manufacturing Products business ("OEM"), along with a portion of revenue within the Aerospace Aftermarket Products and Services business ("Aftermarket"), is recognized at a point in time, primarily when the product or solution is shipped to the customer.
9



Revenue from products and services transferred to customers over-time accounted for approximately 20 percent of total revenue for the three and nine month periods ended September 30, 2022 and September 30, 2021. The Company recognizes revenue over-time in instances where a contract supports a continual transfer of control to the customer. Substantially all of our revenue in the Aerospace Aftermarket maintenance repair and overhaul business (within Aftermarket Products and Services) and a portion of the revenue for Engineered Components products, Molding Solutions products and Aerospace OEM products is recognized over-time. Within the Molding Solutions and Aerospace Aftermarket businesses, this continual transfer of control to the customer partially results from repair and refurbishment work performed on customer-controlled assets. With other contracts, this continual transfer of control to the customer is supported by clauses in the contract, or governing commercial law of the relevant jurisdiction, where we deliver products that do not have an alternative use and require an enforceable right to payment of costs incurred (plus a reasonable profit) or the Company has a contractual right to complete any work in process and receive full contract price.

The majority of our revenue is from contracts that are for less than one year, however certain Aerospace OEM and Molding Solutions business contracts extend beyond one year. In the Industrial segment, customers are typically OEMs or suppliers to OEMs and, in some businesses, distributors. In the Aerospace segment, customers include commercial airlines, OEMs, defense-related manufacturers, and industry parts and service providers.

A performance obligation represents a promise within a contract to provide a distinct good or service to the customer. Revenue is recognized in an over-time model based on the extent of progress towards completion of the performance obligation. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services to be provided. The Company utilizes the cost-to-cost measure of progress for over-time contracts as we believe this measure best depicts the transfer of control to the customer, which occurs as we incur costs on contracts.

Adjustments to net sales, cost of sales and the related impact to operating income are recognized as necessary in the period they become known. Revenue recognized from performance obligations satisfied in previous periods was not material in both the three and nine month periods ended September 30, 2022 and 2021.

Contract Balances. The timing of revenue recognition, invoicing and cash collections affects accounts receivable, unbilled receivables (contract assets) and customer advances and deposits (contract liabilities) on the Consolidated Balance Sheets.

Unbilled Receivables (Contract Assets) - Pursuant to the over-time revenue recognition model, revenue may be recognized prior to the customer being invoiced. An unbilled receivable is recorded to reflect revenue that is recognized when 1) the cost-to-cost method is applied and 2) such revenue exceeds the amount invoiced to the customer. Unbilled receivables are included within Prepaid Expenses and Other Current Assets on the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021.

Customer Advances and Deposits (Contract Liabilities) - The Company may receive a customer advance or deposit, or have an unconditional right to receive a customer advance, prior to revenue being recognized. Certain contracts within the Molding Solutions business, for example, may require such advances. Since the performance obligations related to such advances have not been satisfied, a contract liability is established. An offsetting asset of equal amount is recorded as an account receivable until the advance is collected. Advances and deposits are included within Accrued Liabilities on the Consolidated Balance Sheets until the respective revenue is recognized. Advance payments are not considered a significant financing component as they are generally received less than one year before the customer solution is completed. These assets and liabilities are reported on the Consolidated Balance Sheets on an individual contract basis at the end of each reporting period.

Net contract assets (liabilities) consisted of the following:
September 30, 2022December 31, 2021$ Change% Change
Unbilled receivables (contract assets)$42,274 $33,522 $8,752 26 %
Contract liabilities(14,706)(25,374)10,668 (42)%
Net contract assets$27,568 $8,148 $19,420 238 %

Contract liabilities balances at September 30, 2022 and December 31, 2021 include $4,033 and $9,364, respectively, of customer advances for which the Company has an unconditional right to collect payment. Accounts receivable, as presented on the Consolidated Balance Sheet, includes corresponding balances at September 30, 2022 and December 31, 2021, respectively.
10


Changes in the net contract assets during the nine month period ended September 30, 2022 included a $10,668 decrease in contract liabilities, driven primarily by revenue recognized in the current period, partially offset by new customer advances and deposits. Adding to this net contract assets increase was a $8,752 increase in contract assets, driven primarily by contract progress (i.e., unbilled receivable), partially offset by earlier contract progress being invoiced to the customer.

The Company recognized less than 10% and over 90% of the revenue related to the contract liabilities balance as of December 31, 2021 during the three and nine months periods ended September 30, 2022, respectively, and approximately 30% and 85% of the revenue related to the contract liabilities balance as of December 31, 2020 during the three and nine month periods ended September 30, 2021, respectively, primarily representing revenue from the sale of molds and hot runners within the Molding Solutions business.

Remaining Performance Obligations. The Company has elected to disclose remaining performance obligations only for contracts with an original duration of greater than one year. Such remaining performance obligations represent the transaction price of firm orders for which work has not yet been performed and, for Aerospace, excludes projections of components and assemblies that Aerospace OEM customers anticipate purchasing in the future under existing programs, which represent orders that are beyond lead time and do not represent performance obligations pursuant to accounting guidance. As of September 30, 2022, the aggregate amount of the transaction price allocated to remaining performance obligations was $202,271. The Company expects to recognize revenue on approximately 70% of the remaining performance obligations over the next 12 months, with the remainder to be recognized within 24 months.

4. Stockholders' Equity

A schedule of consolidated changes in equity for the nine months ended September 30, 2022 is as follows (number of shares in thousands):
Common
Stock
(Number of
Shares)
Common
Stock
(Amount)
Additional
Paid-In
Capital
Treasury
Stock
(Number of
Shares)
Treasury
Stock (Amount)
Retained
Earnings
Accumulated
Other
Non-Owner
Changes to
Equity
Total
Stockholders’
Equity
December 31, 202164,344 $643 $516,562 13,658 $(523,642)$1,587,041 $(151,838)$1,428,766 
Comprehensive income (loss)— — — — — 20,484 (2,590)17,894 
Dividends declared ($0.16 per share)

— — — — — (8,111)— (8,111)
Employee stock plans12 1 2,665 2 (49)(136)— 2,481 
March 31, 202264,356 $644 $519,227 13,660 $(523,691)$1,599,278 $(154,428)$1,441,030 
Comprehensive loss— — — — — (39,552)(69,962)(109,514)
Dividends declared ($0.16 per share)

— — — — — (8,081)— (8,081)
Common stock repurchases— — — 200 (6,721)— — (6,721)
Employee stock plans23 — 3,548 3 (106)(62)— 3,380 
June 30, 202264,379 $644 $522,775 13,863 $(530,518)$1,551,583 $(224,390)$1,320,094 
Comprehensive income (loss)— — — — — 16,979 (64,779)(47,800)
Dividends declared ($0.16 per share)
— — — — — (8,090)— (8,090)
Employee stock plans70  3,592 19 (663)(77)— 2,852 
September 30, 202264,449 $644 $526,367 13,882 $(531,181)$1,560,395 $(289,169)$1,267,056 

A schedule of consolidated changes in equity for the nine months ended September 30, 2021 is as follows (number of shares in thousands):
11


Common
Stock
(Number of
Shares)
Common
Stock
(Amount)
Additional
Paid-In
Capital
Treasury
Stock
(Number of
Shares)
Treasury
Stock (Amount)
Retained
Earnings
Accumulated
Other
Non-Owner
Changes to
Equity
Total
Stockholders’
Equity
December 31, 202064,171 $642 $501,531 13,530 $(516,992)$1,519,811 $(122,315)$1,382,677 
Comprehensive income (loss)— — — — — 19,382 (44,902)(25,520)
Dividends declared ($0.16 per share)
— — — — — (8,104)— (8,104)
Employee stock plans12 — 2,406 1 (68)(24)— 2,314 
March 31, 202164,183 $642 $503,937 13,531 $(517,060)$1,531,065 $(167,217)$1,351,367 
Comprehensive income— — — — — 24,491 24,591 49,082 
Dividends declared ($0.16 per share)
— — — — — (8,090)— (8,090)
Common stock repurchases— — — 100 (5,229)— — (5,229)
Employee stock plans17 — 3,417 3 (123)(31)— 3,263 
June 30, 202164,200 $642 $507,354 13,634 $(522,412)$1,547,435 $(142,626)$1,390,393 
Comprehensive income (loss)— — — — — 27,863 (21,681)6,182 
Dividends declared ($0.16 per share)
— — — — — (8,099)— (8,099)
Residual interest in subsidiary— — 2,177 — — — — 2,177 
Employee stock plans84 1 3,826 23 (1,165)(86)— 2,576 
September 30, 202164,284 $643 $513,357 13,657 $(523,577)$1,567,113 $(164,307)$