10-Q 1 cmco-20220930.htm 10-Q cmco-20220930
false0001005229March 312023Q200010052292022-04-012022-09-3000010052292022-10-24xbrli:shares00010052292022-09-30iso4217:USD00010052292022-03-3100010052292022-07-012022-09-3000010052292021-07-012021-09-3000010052292021-04-012021-09-300001005229us-gaap:RetainedEarningsMember2022-07-012022-09-300001005229us-gaap:RetainedEarningsMember2021-07-012021-09-300001005229us-gaap:RetainedEarningsMember2022-04-012022-09-30iso4217:USDxbrli:shares0001005229us-gaap:RetainedEarningsMember2021-04-012021-09-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-09-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-09-300001005229us-gaap:CommonStockMember2022-04-012022-06-300001005229us-gaap:AdditionalPaidInCapitalMember2022-04-012022-06-300001005229us-gaap:RetainedEarningsMember2022-04-012022-06-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-012022-06-3000010052292022-04-012022-06-300001005229us-gaap:AdditionalPaidInCapitalMember2022-06-300001005229us-gaap:RetainedEarningsMember2022-06-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000010052292022-06-300001005229us-gaap:CommonStockMember2022-07-012022-09-300001005229us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001005229srt:DirectorMemberus-gaap:CommonStockMember2022-07-012022-09-300001005229srt:DirectorMemberus-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001005229srt:DirectorMemberus-gaap:RetainedEarningsMember2022-07-012022-09-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:DirectorMember2022-07-012022-09-300001005229srt:DirectorMember2022-07-012022-09-300001005229cmco:AllOtherIndividualsMember2022-07-012022-09-3000010052292021-03-310001005229us-gaap:CommonStockMember2021-04-012021-06-300001005229us-gaap:AdditionalPaidInCapitalMember2021-04-012021-06-300001005229us-gaap:RetainedEarningsMember2021-04-012021-06-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-04-012021-06-3000010052292021-04-012021-06-3000010052292021-05-042021-05-0400010052292021-05-0400010052292021-06-300001005229us-gaap:CommonStockMember2021-07-012021-09-300001005229us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001005229srt:DirectorMemberus-gaap:CommonStockMember2021-07-012021-09-300001005229srt:DirectorMemberus-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001005229srt:DirectorMemberus-gaap:RetainedEarningsMember2021-07-012021-09-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:DirectorMember2021-07-012021-09-300001005229cmco:AllOtherIndividualsMember2021-07-012021-09-3000010052292021-09-300001005229country:USus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-07-012022-09-30xbrli:pure0001005229country:USus-gaap:GeographicConcentrationRiskMemberus-gaap:RevenueFromContractWithCustomerMember2022-04-012022-09-300001005229cmco:DornerMember2021-04-072021-04-070001005229cmco:DornerMember2021-07-012021-09-300001005229cmco:DornerMember2021-04-012021-09-300001005229cmco:DornerMember2022-04-012022-09-300001005229us-gaap:CostOfGoodsProductLineMember2021-04-012021-09-300001005229us-gaap:SellingAndMarketingExpenseMember2021-04-012021-09-300001005229us-gaap:GeneralAndAdministrativeExpenseMember2021-04-012021-09-300001005229us-gaap:ResearchAndDevelopmentExpenseMember2021-04-012021-09-300001005229cmco:DornerMember2021-04-070001005229cmco:DornerMemberus-gaap:CustomerRelationshipsMember2021-04-072021-04-070001005229us-gaap:TechnologyBasedIntangibleAssetsMembercmco:DornerMember2021-04-072021-04-070001005229us-gaap:TradeNamesMembercmco:DornerMember2021-04-072021-04-070001005229cmco:GarveyMember2021-12-012021-12-010001005229cmco:GarveyMember2022-07-012022-09-300001005229cmco:GarveyMember2021-12-010001005229cmco:GarveyMember2021-11-302021-11-300001005229cmco:GarveyMember2022-04-012022-09-300001005229cmco:GarveyMemberus-gaap:CustomerRelationshipsMember2021-12-012021-12-010001005229us-gaap:TechnologyServiceMembercmco:GarveyMember2021-12-012021-12-010001005229us-gaap:TrademarksMembercmco:GarveyMember2021-12-012021-12-010001005229cmco:GarveyMemberus-gaap:PatentsMember2021-12-012021-12-010001005229cmco:GarveyMemberus-gaap:OrderOrProductionBacklogMember2021-12-012021-12-010001005229cmco:GarveyMemberus-gaap:OtherIntangibleAssetsMember2021-12-012021-12-010001005229us-gaap:ShortTermContractWithCustomerMember2022-04-012022-09-300001005229us-gaap:LongTermContractWithCustomerMember2022-04-012022-09-300001005229cmco:IndustrialProductsMember2022-07-012022-09-300001005229cmco:IndustrialProductsMember2021-07-012021-09-300001005229cmco:IndustrialProductsMember2022-04-012022-09-300001005229cmco:IndustrialProductsMember2021-04-012021-09-300001005229cmco:CraneSolutionsMember2022-07-012022-09-300001005229cmco:CraneSolutionsMember2021-07-012021-09-300001005229cmco:CraneSolutionsMember2022-04-012022-09-300001005229cmco:CraneSolutionsMember2021-04-012021-09-300001005229cmco:EngineeredProductsMember2022-07-012022-09-300001005229cmco:EngineeredProductsMember2021-07-012021-09-300001005229cmco:EngineeredProductsMember2022-04-012022-09-300001005229cmco:EngineeredProductsMember2021-04-012021-09-300001005229cmco:PrecisionConveyorProductsMember2022-07-012022-09-300001005229cmco:PrecisionConveyorProductsMember2021-07-012021-09-300001005229cmco:PrecisionConveyorProductsMember2022-04-012022-09-300001005229cmco:PrecisionConveyorProductsMember2021-04-012021-09-300001005229cmco:AllotherMember2022-07-012022-09-300001005229cmco:AllotherMember2021-07-012021-09-300001005229cmco:AllotherMember2022-04-012022-09-300001005229cmco:AllotherMember2021-04-012021-09-300001005229us-gaap:AllowanceForCreditLossMember2022-04-012022-09-300001005229us-gaap:AllowanceForCreditLossMember2021-04-012021-09-300001005229cmco:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-09-300001005229cmco:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-09-300001005229cmco:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-09-300001005229us-gaap:VariableAnnuityMember2022-09-300001005229us-gaap:VariableAnnuityMemberus-gaap:FairValueInputsLevel1Member2022-09-300001005229us-gaap:FairValueInputsLevel2Memberus-gaap:VariableAnnuityMember2022-09-300001005229us-gaap:VariableAnnuityMemberus-gaap:FairValueInputsLevel3Member2022-09-300001005229us-gaap:ForeignExchangeContractMember2022-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2022-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2022-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:AssetsMember2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:LiabilityMember2022-09-300001005229us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:AssetsMember2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:LiabilityMemberus-gaap:FairValueInputsLevel3Member2022-09-300001005229us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:LiabilityMember2022-09-300001005229us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:LiabilityMember2022-09-300001005229us-gaap:FairValueInputsLevel2Memberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:LiabilityMember2022-09-300001005229us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:LiabilityMemberus-gaap:FairValueInputsLevel3Member2022-09-300001005229us-gaap:SubordinatedDebtObligationsMember2022-09-300001005229us-gaap:SubordinatedDebtObligationsMemberus-gaap:FairValueInputsLevel1Member2022-09-300001005229us-gaap:FairValueInputsLevel2Memberus-gaap:SubordinatedDebtObligationsMember2022-09-300001005229us-gaap:SubordinatedDebtObligationsMemberus-gaap:FairValueInputsLevel3Member2022-09-300001005229cmco:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel1Member2022-03-310001005229cmco:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-03-310001005229cmco:MarketableSecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-03-310001005229us-gaap:VariableAnnuityMember2022-03-310001005229us-gaap:VariableAnnuityMemberus-gaap:FairValueInputsLevel1Member2022-03-310001005229us-gaap:FairValueInputsLevel2Memberus-gaap:VariableAnnuityMember2022-03-310001005229us-gaap:VariableAnnuityMemberus-gaap:FairValueInputsLevel3Member2022-03-310001005229us-gaap:ForeignExchangeContractMember2022-03-310001005229us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel1Member2022-03-310001005229us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel2Member2022-03-310001005229us-gaap:ForeignExchangeContractMemberus-gaap:FairValueInputsLevel3Member2022-03-310001005229us-gaap:InterestRateSwapMemberus-gaap:AssetsMember2022-03-310001005229us-gaap:InterestRateSwapMemberus-gaap:FairValueInputsLevel1Memberus-gaap:AssetsMember2022-03-310001005229us-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:AssetsMember2022-03-310001005229us-gaap:InterestRateSwapMemberus-gaap:AssetsMemberus-gaap:FairValueInputsLevel3Member2022-03-310001005229us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:LiabilityMember2022-03-310001005229us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:FairValueInputsLevel1Memberus-gaap:LiabilityMember2022-03-310001005229us-gaap:FairValueInputsLevel2Memberus-gaap:CrossCurrencyInterestRateContractMemberus-gaap:LiabilityMember2022-03-310001005229us-gaap:CrossCurrencyInterestRateContractMemberus-gaap:LiabilityMemberus-gaap:FairValueInputsLevel3Member2022-03-310001005229us-gaap:SubordinatedDebtObligationsMember2022-03-310001005229us-gaap:SubordinatedDebtObligationsMemberus-gaap:FairValueInputsLevel1Member2022-03-310001005229us-gaap:FairValueInputsLevel2Memberus-gaap:SubordinatedDebtObligationsMember2022-03-310001005229us-gaap:SubordinatedDebtObligationsMemberus-gaap:FairValueInputsLevel3Member2022-03-310001005229cmco:EMCMembercmco:EMCMember2017-12-210001005229cmco:EMCMember2022-09-300001005229cmco:EMCMember2022-03-310001005229cmco:EMCMember2022-07-012022-09-300001005229cmco:EMCMember2021-07-012021-09-300001005229cmco:EMCMember2022-04-012022-09-300001005229cmco:EMCMember2021-04-012021-09-300001005229us-gaap:EquityMethodInvestmentsMember2022-04-012022-09-300001005229cmco:EMCMember2022-04-012022-06-30cmco:Reporting_Unit0001005229cmco:DuffNortonGroupMember2022-09-300001005229cmco:DuffNortonGroupMember2022-03-310001005229cmco:RestofProductsMember2022-09-300001005229cmco:RestofProductsMember2022-03-310001005229cmco:PrecisionConveyanceMember2022-09-300001005229cmco:PrecisionConveyanceMember2022-03-310001005229us-gaap:TrademarksMember2022-09-300001005229us-gaap:TrademarksMember2022-03-310001005229us-gaap:CustomerRelationshipsMember2022-09-300001005229us-gaap:CustomerRelationshipsMember2022-03-310001005229us-gaap:UnpatentedTechnologyMember2022-09-300001005229us-gaap:UnpatentedTechnologyMember2022-03-310001005229us-gaap:OtherIntangibleAssetsMember2022-09-300001005229us-gaap:OtherIntangibleAssetsMember2022-03-310001005229us-gaap:TrademarksMember2022-04-012022-09-300001005229us-gaap:CustomerRelationshipsMember2022-04-012022-09-300001005229us-gaap:TechnologyBasedIntangibleAssetsMember2022-04-012022-09-300001005229us-gaap:OtherIntangibleAssetsMember2022-04-012022-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-300001005229srt:MinimumMember2022-09-300001005229srt:MaximumMember2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMembercmco:ReclassifyNextYearMember2022-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-012022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-012022-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-07-012022-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-07-012021-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-07-012021-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2021-07-012021-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-04-012022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-04-012022-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-04-012022-09-300001005229us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-04-012021-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-04-012021-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2021-04-012021-09-300001005229us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-300001005229us-gaap:OtherCurrentAssetsMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001005229us-gaap:AccruedLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-300001005229us-gaap:AccruedLiabilitiesMemberus-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001005229us-gaap:InterestRateSwapMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMember2022-03-310001005229us-gaap:InterestRateSwapMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2022-09-300001005229us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMember2022-03-310001005229us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-09-300001005229us-gaap:OtherCurrentAssetsMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-03-310001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:CrossCurrencyInterestRateContractMember2022-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentAssetsMemberus-gaap:CrossCurrencyInterestRateContractMember2022-03-310001005229us-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-09-300001005229us-gaap:AccruedLiabilitiesMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:CrossCurrencyInterestRateContractMember2022-03-310001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CrossCurrencyInterestRateContractMember2022-09-300001005229us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:CrossCurrencyInterestRateContractMember2022-03-310001005229us-gaap:LongTermDebtMember2021-04-012021-09-300001005229us-gaap:RevolvingCreditFacilityMember2021-04-012021-09-300001005229us-gaap:BridgeLoanMember2021-04-012021-09-300001005229us-gaap:SecuredDebtMember2021-09-300001005229cmco:DornerMember2021-09-300001005229cmco:DornerMembercmco:NewRevolvingCreditFacilityMember2021-09-300001005229us-gaap:RevolvingCreditFacilityMembercmco:DornerMember2021-09-300001005229cmco:RequiredpaymentsMember2022-09-300001005229cmco:NewRevolvingCreditFacilityMember2022-09-300001005229us-gaap:LetterOfCreditMembercmco:NewRevolvingCreditFacilityMember2022-09-300001005229us-gaap:StandbyLettersOfCreditMembercmco:NewRevolvingCreditFacilityMember2022-09-300001005229us-gaap:LoansMemberus-gaap:SecuredDebtMember2022-09-300001005229us-gaap:RevolvingCreditFacilityMember2022-09-300001005229us-gaap:RevolvingCreditFacilityMember2022-03-310001005229us-gaap:UnsecuredDebtMembercmco:NewRevolvingCreditFacilityMember2022-09-300001005229us-gaap:PensionPlansDefinedBenefitMember2022-04-012022-09-300001005229us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300001005229us-gaap:PensionPlansDefinedBenefitMember2021-07-012021-09-300001005229us-gaap:PensionPlansDefinedBenefitMember2021-04-012021-09-300001005229srt:ScenarioForecastMember2023-03-310001005229us-gaap:EmployeeStockOptionMember2022-04-012022-09-300001005229us-gaap:EmployeeStockOptionMember2021-04-012021-09-300001005229cmco:A2016LTIPMember2022-09-3000010052292021-04-012022-03-310001005229us-gaap:SubsequentEventMember2022-10-092022-10-090001005229us-gaap:SubsequentEventMember2022-11-162022-11-160001005229us-gaap:OtherNoncurrentLiabilitiesMember2022-09-300001005229us-gaap:AccruedLiabilitiesMember2022-09-300001005229srt:MinimumMember2022-04-012022-09-300001005229srt:MaximumMember2022-04-012022-09-300001005229srt:ScenarioForecastMember2023-04-012023-09-300001005229cmco:MagnetekMember2022-09-30iso4217:EUR00010052292012-08-022012-08-020001005229cmco:TravelersMember2022-04-012022-06-300001005229cmco:MagnetekMembercmco:DEPMember2022-09-300001005229srt:ScenarioForecastMembersrt:MinimumMember2023-04-012023-06-300001005229srt:MaximumMembersrt:ScenarioForecastMember2023-04-012023-06-300001005229us-gaap:PensionCostsMember2022-06-300001005229us-gaap:ForeignCurrencyGainLossMember2022-06-300001005229us-gaap:GainLossOnDerivativeInstrumentsMember2022-06-300001005229us-gaap:PensionCostsMember2022-07-012022-09-300001005229us-gaap:ForeignCurrencyGainLossMember2022-07-012022-09-300001005229us-gaap:GainLossOnDerivativeInstrumentsMember2022-07-012022-09-300001005229us-gaap:PensionCostsMember2022-09-300001005229us-gaap:ForeignCurrencyGainLossMember2022-09-300001005229us-gaap:GainLossOnDerivativeInstrumentsMember2022-09-300001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001005229us-gaap:PensionCostsMember2022-03-310001005229us-gaap:ForeignCurrencyGainLossMember2022-03-310001005229us-gaap:GainLossOnDerivativeInstrumentsMember2022-03-310001005229us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001005229us-gaap:PensionCostsMember2022-04-012022-09-300001005229us-gaap:ForeignCurrencyGainLossMember2022-04-012022-09-300001005229us-gaap:GainLossOnDerivativeInstrumentsMember2022-04-012022-09-300001005229us-gaap:PensionCostsMemberus-gaap:CostOfGoodsTotalMember2022-07-012022-09-300001005229us-gaap:DeferredIncomeTaxChargesMemberus-gaap:PensionCostsMember2022-07-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:CostOfGoodsTotalMember2022-07-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:InterestExpenseMember2022-07-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:ForeignCurrencyGainLossMember2022-07-012022-09-300001005229us-gaap:DerivativeMember2022-07-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:DeferredIncomeTaxChargesMember2022-07-012022-09-300001005229us-gaap:PensionCostsMemberus-gaap:CostOfGoodsTotalMember2022-04-012022-09-300001005229us-gaap:DeferredIncomeTaxChargesMemberus-gaap:PensionCostsMember2022-04-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:CostOfGoodsTotalMember2022-04-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:InterestExpenseMember2022-04-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:ForeignCurrencyGainLossMember2022-04-012022-09-300001005229us-gaap:DerivativeMember2022-04-012022-09-300001005229us-gaap:DerivativeMemberus-gaap:DeferredIncomeTaxChargesMember2022-04-012022-09-300001005229us-gaap:OperatingIncomeLossMember2022-07-012022-09-300001005229us-gaap:OperatingIncomeLossMember2022-04-012022-09-300001005229us-gaap:OperatingIncomeLossMember2021-07-012021-09-300001005229us-gaap:OperatingIncomeLossMember2021-04-012021-09-300001005229us-gaap:InterestExpenseMember2022-07-012022-09-300001005229us-gaap:InterestExpenseMember2022-04-012022-09-300001005229us-gaap:InterestExpenseMember2021-07-012021-09-300001005229us-gaap:InterestExpenseMember2021-04-012021-09-30

Washington, D. C. 20549

For the quarterly period ended September 30, 2022 
Commission File Number  001-34362

Columbus McKinnon Corporation
(Exact name of registrant as specified in its charter)
New York16-0547600
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
205 Crosspoint ParkwayBuffaloNY14068
(Address of principal executive offices)(Zip code)
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareCMCONasdaq Global Select Market

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     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 during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes   No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large accelerated filerAccelerated filerNon-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 Exchange Act). Yes   No

The number of shares of common stock outstanding as of October 24, 2022 was: 28,629,775 shares.

September 30, 2022
  Page #
Part I. Financial Information 
Item 1.Condensed Consolidated Financial Statements (Unaudited) 
Condensed consolidated balance sheets - September 30, 2022 and March 31, 2022
Condensed consolidated statements of operations - Three and six months ended September 30, 2022 and September 30, 2021
Condensed consolidated statements of comprehensive income (loss) - Three and six months ended September 30, 2022 and September 30, 2021
Condensed consolidated statements of shareholders' equity - Three and six months ended September 30, 2022 and September 30, 2021
Condensed consolidated statements of cash flows - Three and six months ended September 30, 2022 and September 30, 2021
Item 2.
Item 3.
Item 4.
Part II. Other Information 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

Part I.    Financial Information
Item 1.    Condensed Consolidated Financial Statements (Unaudited)

 September 30,
March 31,
ASSETS:(In thousands)
Current assets:
Cash and cash equivalents$88,865 $115,390 
Trade accounts receivable, less allowance for doubtful accounts ($5,104 and $5,717, respectively)
140,298 147,515 
Inventories192,789 172,139 
Prepaid expenses and other37,537 31,545 
Total current assets459,489 466,589 
Property, plant, and equipment, net92,617 97,926 
Goodwill627,850 648,849 
Other intangibles, net365,206 390,788 
Marketable securities10,183 10,294 
Deferred taxes on income2,265 2,313 
Other assets71,685 68,948 
Total assets$1,629,295 $1,685,707 
Current liabilities:  
Trade accounts payable$76,584 $90,881 
Accrued liabilities104,835 118,187 
Current portion of long term debt and finance lease obligations40,580 40,551 
Total current liabilities221,999 249,619 
Term loan and finance lease obligations450,840 470,675 
Other non current liabilities172,072 192,610 
Total liabilities844,911 912,904 
Shareholders' equity:  
Voting common stock; 50,000,000 shares authorized; 28,629,360
 and 28,517,333 shares issued and outstanding
286 285 
Additional paid in capital508,948 506,074 
Retained earnings336,844 316,343 
Accumulated other comprehensive loss(61,694)(49,899)
Total shareholders' equity784,384 772,803 
Total liabilities and shareholders' equity$1,629,295 $1,685,707 

See accompanying notes.


 Three Months EndedSix Months Ended
September 30,
September 30,
September 30,
September 30,
 (In thousands, except per share data)
Net sales$231,740 $223,635 $452,027 $437,099 
Cost of products sold145,430 142,500 283,191 281,901 
Gross profit86,310 81,135 168,836 155,198 
Selling expenses25,617 24,157 51,773 47,639 
General and administrative expenses21,413 23,208 43,299 53,351 
Research and development expenses5,461 3,825 10,591 7,408 
Amortization of intangibles6,447 6,285 12,982 12,394 
 58,938 57,475 118,645 120,792 
Income from operations27,372 23,660 50,191 34,406 
Interest and debt expense6,768 4,587 12,971 10,399 
Cost of debt refinancing   14,803 
Investment (income) loss312 (115)742 (548)
Foreign currency exchange (gain) loss1,003 441 2,206 535 
Other (income) expense, net222 (539)(2,079)(289)
Income (loss) before income tax expense (benefit)19,067 19,286 36,351 9,506 
Income tax expense (benefit)4,953 4,083 13,846 1,566 
Net income (loss)$14,114 $15,203 $22,505 $7,940 
Average basic shares outstanding28,619 28,418 28,581 27,594 
Average diluted shares outstanding28,748 28,756 28,733 27,957 
Basic income (loss) per share:$0.49 $0.53 $0.79 $0.29 
Diluted income (loss) per share:$0.49 $0.53 $0.78 $0.28 
Dividends declared per common share$0.07 $0.06 $0.07 $0.06 
See accompanying notes.


 Three Months EndedSix Months Ended
September 30,
September 30,
September 30,
September 30,
 (In thousands)(In thousands)
Net income (loss)$14,114 $15,203 $22,505 7,940 
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments(10,781)(4,226)(19,482)(2,150)
Change in derivatives qualifying as hedges, net of taxes of $(1,509), $986, $(2,375), $955
4,686 (2,995)7,375 (2,899)
Change in pension liability and postretirement obligation, net of taxes of $(56), $(74), $(105), $(40)
166 212 312 115 
Total other comprehensive income (loss) (5,929)(7,009)(11,795)(4,934)
Comprehensive income (loss)$8,185 $8,194 $10,710 $3,006 

See accompanying notes.


(In thousands, except share data)
($0.01 par value)
Balance at March 31, 2022$285 $506,074 $316,343 $(49,899)$772,803 
Net income (loss)  8,391  8,391 
Change in foreign currency translation adjustment   (8,701)(8,701)
Change in derivatives qualifying as hedges, net of tax of $(812)
   2,689 2,689 
Change in pension liability and postretirement obligations, net of tax of $(49)
   146 146 
Stock options exercised, 18,907 shares
 415   415 
Stock compensation expense 751   751 
Restricted stock units released, 52,276 shares, net of shares withheld for minimum statutory tax obligation
1 (1,314)  (1,313)
Balance at June 30, 2022$286 $505,926 $324,734 $(55,765)$775,181 
Net income (loss)  14,114  14,114 
Dividends declared  (2,004) (2,004)
Change in foreign currency translation adjustment   (10,781)(10,781)
Change in derivatives qualifying as hedges, net of tax of $(1,509)
   4,686 4,686 
Change in pension liability and postretirement obligations, net of tax of $(56)
   166 166 
Stock compensation - directors 537   537 
Stock options exercised, 9,531 shares
 206   206 
Stock compensation expense 2,341   2,341 
Restricted stock units released, 31,313 shares, net of shares withheld for minimum statutory tax obligation
 (62)  (62)
Balance at September 30, 2022$286 $508,948 $336,844 $(61,694)$784,384 

See accompanying notes.



(In thousands, except share data)
($0.01 par value)
Balance at March 31, 2021$240 $296,093 $293,802 $(59,986)$530,149 
Net income (loss)  (7,263) (7,263)
Change in foreign currency translation adjustment   2,076 2,076 
Change in derivatives qualifying as hedges, net of tax of $(31)
   96 96 
Change in pension liability and postretirement obligations, net of tax of $34
Issuance of 4,312,500 shares of common stock in May 2021 offering at $48.00, net issuance of costs $8,340
43 198,662   198,705 
Stock options exercised, 12,682 shares
 290   290 
Stock compensation expense 2,262   2,262 
Restricted stock units released, 58,081 shares, net of shares withheld for minimum statutory tax obligation
1 (1,766)  (1,765)
Balance at June 30, 2021$284 $495,541 $286,539 $(57,911)$724,453 
Net income (loss)  15,203  15,203 
Dividends declared  (1,706) (1,706)
Change in foreign currency translation adjustment   (4,226)(4,226)
Change in derivatives qualifying as hedges, net of tax of $986
Change in pension liability and postretirement obligations, net of tax of $(74)
   212 212 
Stock compensation - directors 480   480 
Stock options exercised, 38,744 shares
1,122   1,122 
Stock compensation expense 2,762   2,762 
Restricted stock units released,32,665 shares, net of shares withheld for minimum statutory tax obligation
 (147)  (147)
Balance at September 30, 2021$284 $499,758 $300,036 $(64,920)$735,158 

See accompanying notes.


 Six Months Ended
September 30,
September 30,
Net income (loss)22,505 7,940 
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:  
Depreciation and amortization20,893 20,969 
Deferred income taxes and related valuation allowance(698)(1,235)
Net loss (gain) on sale of real estate, investments and other852 (462)
Stock-based compensation3,629 5,504 
Amortization of deferred financing costs860 867 
Cost of debt refinancing 14,803 
Loss (gain) on hedging instruments(714)672 
Gain on sale of building(232)(375)
Loss on retirement of fixed asset175  
Non-cash lease expense3,843 3,939 
Changes in operating assets and liabilities, net of effects of business acquisitions: 
Trade accounts receivable381 (1,709)
Prepaid expenses and other2,321 (2,779)
Other assets24 42 
Trade accounts payable(11,267)(6,274)
Accrued liabilities(3,124)1,908 
Non-current liabilities(2,545)(3,909)
Net cash provided by (used for) operating activities6,149 17,942 
Proceeds from sales of marketable securities1,900 2,734 
Purchases of marketable securities(2,709)(4,768)
Capital expenditures(5,288)(6,752)
Proceeds from sale of building, net of transaction costs 373 461 
Dividend received from equity method investment 313  
Proceeds from insurance reimbursement 482 
Purchase of businesses, net of cash acquired (See Note 2)(1,616)(472,954)
Net cash provided by (used for) investing activities(7,027)(480,797)
Proceeds from the issuance of common stock621 1,412 
Repayment of debt(20,264)(461,286)
Proceeds from issuance of long-term debt 650,000 
Proceeds from equity offering 207,000 
Fees related to debt and equity offering (25,292)
Cash inflows from hedging activities12,306 7,007 
Cash outflows from hedging activities(11,689)(6,927)
Payment of dividends(4,001)(3,145)
Net cash provided by (used for) financing activities(24,402)366,860 
Effect of exchange rate changes on cash(1,245)(821)
Net change in cash and cash equivalents(26,525)(96,816)
Cash, cash equivalents, and restricted cash at beginning of year115,640 202,377 
Cash, cash equivalents, and restricted cash at end of period$89,115 $105,561 
Supplementary cash flow data:  
Interest paid$12,045 $8,666 
Income taxes paid, net of refunds$10,271 $2,910 
Restricted cash presented in Other assets$250 $250 
See accompanying notes.

September 30, 2022

1.    Description of Business

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position of Columbus McKinnon Corporation ("the Company") at September 30, 2022, the results of its operations for the three and six months ended September 30, 2022 and September 30, 2021, and cash flows for the six months ended September 30, 2022 and September 30, 2021, have been included. Results for the period ended September 30, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2023. The balance sheet at March 31, 2022 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Columbus McKinnon Corporation Annual Report on Form 10-K for the fiscal year ended March 31, 2022 (the “2022 10-K”).

The Company is a leading worldwide designer, manufacturer, and marketer of intelligent motion solutions that efficiently and ergonomically move, lift, position, and secure materials. Key products include hoists, crane components, precision conveyor systems, accumulation tables, rigging tools, light rail workstations, and digital power and motion control systems. The Company is focused on commercial and industrial applications that require the safety and quality provided by its superior design and engineering know-how.

The Company’s products are sold globally, principally to third party distributors and crane builders through diverse distribution channels, and to a lesser extent directly to end-users. During the three and six months ended September 30, 2022, sales to customers in the United States were approximately 60% and 62% of total net sales, respectively.
2.    Acquisitions & Disposals
2022 Acquisitions

On April 7, 2021, the Company completed its acquisition of Dorner Mfg. Corp. ("Dorner") for $481,012,000. Dorner, headquartered in Hartland, WI, is a leading automation solutions company providing unique, patented technologies in the design, application, manufacturing and integration of high-precision conveying systems. The acquisition of Dorner accelerated the Company’s shift to intelligent motion and serves as a platform to expand capabilities in advanced, higher technology automation solutions. Dorner is a leading supplier to the life sciences, food processing, and consumer packaged goods markets as well as the faster growing industrial automation and e-commerce sectors.

The results of Dorner included in the Company’s consolidated financial statements from the date of acquisition are Net sales and Income from operations of $33,539,000 and $3,161,000, respectively, in the three months ended September 30, 2021 and Net sales and Income from operations of $67,718,000 and $4,324,000, respectively, in the six months ended September 30, 2021. Dorner's Income from operations in the three and six months ended September 30, 2021 includes $218,000 in integration related severance costs, which have been included in General and Administrative expenses. Dorner's Income from operations in the six months ended September 30, 2021 includes acquisition related inventory amortization of $2,981,000, which has been included in Cost of products sold.

In addition, the Company incurred acquisition and deal expenses in the amount of $414,000 and $8,686,000 in the three and six months ended September 30, 2021, respectively, which are included in General and Administrative expenses. These costs were immaterial in the three and six months ended September 30, 2022. Additionally, the Company also incurred $970,000 in costs related to a transaction bonus that was paid 45 days after the acquisition date to key personnel of which $521,000 has been recorded as part of Cost of products sold, $350,000 has been recorded as part of Selling expenses, $74,000 has been recorded as part of General and administrative expenses, and $25,000 has been recorded as part of Research and development expenses in the six months ended September 30, 2021

To finance the Dorner acquisition, on April 7, 2021 the Company entered into a $750,000,000 credit facility ("First Lien Facilities") with JPMorgan Chase Bank, N.A. ("JPMorgan Chase Bank"), PNC Capital Markets LLC, and Wells Fargo Securities LLC. The First Lien Facilities consist of a Revolving Facility (the “New Revolving Credit Facility”) in an aggregate amount of $100,000,000 and a $650,000,000 First Lien Term Facility ("Bridge Facility"). Proceeds from the Bridge Facility

were used, among other things, to finance the purchase price for the Dorner acquisition, pay related fees, expenses and transaction costs, and refinance the Company's borrowings under its prior Term Loan and Revolver. Refer to Note 9, for further details on the Company's new debt agreement and subsequent equity offering.

The purchase price has been allocated to the assets acquired and liabilities assumed as of the date of acquisition. The excess consideration of $287,141,000 has been recorded as goodwill as of March 31, 2022. The identifiable intangible assets acquired include customer relationships of $137,000,000, technology of $45,000,000, and trade names of $8,000,000. The weighted average life of the acquired identifiable intangible assets subject to amortization was estimated at 15 years at the time of acquisition. Approximately $8,000,000 of goodwill arising as a result of the acquisition is deductible for tax purposes.

The assignment of purchase consideration to the assets acquired and liabilities assumed is as follows (in thousands):

Working Capital20,218 
Property, plant, and equipment, net26,104 
Intangible assets190,000 
Other assets658 
Other liabilities(896)
Finance lease liabilities(14,582)
Deferred and other taxes, net(35,689)

On December 1, 2021, the Company completed its acquisition of Garvey Corporation ("Garvey") for $67,347,000 including $907,000 in cash acquired, after an adjustment for working capital finalized in fiscal 2023 for $1,616,000, and subject to a $2,000,000 contingent payment that only becomes payable if (a) the EBITDA target set forth in the purchase agreement for Garvey for the twelve-month period commencing on the month immediately following closing is achieved and (b) a specific current executive of Garvey remains employed with Garvey until at least March 31, 2023. The Company financed the acquisition by borrowing $75,000,000 utilizing the Accordion feature under its existing Term Loan B, discussed in Note 9. Garvey is a leading accumulation systems solutions company providing unique, patented systems for the automation of production processes whose products complement those of Dorner.

The transaction was accounted for using the acquisition method and, accordingly, the results of the acquired business have been included in the Company's results of operations from the acquisition date. As the Company determined that the acquisition is not material to its existing operations, certain disclosures, and including pro forma financial information, have not been included. In addition, the Company incurred immaterial acquisition and deal costs in the three and six months ended September 30, 2022.

The purchase price has been preliminarily allocated to the assets acquired and liabilities assumed as of the date of acquisition. The excess consideration of $40,832,000 has been preliminarily recorded as goodwill, a decrease of $384,000 from March 31, 2022 relating to an adjustment for the contingent payment of $2,000,000 to reclassify it as part of Prepaid expenses and other assets on the Condensed Consolidated Balance Sheet and an increase of $1,616,000 related to the working capital adjustment. The identifiable intangible assets acquired include customer relationships of $8,200,000, engineered drawings of $4,670,000, trademarks of $3,610,000, patent of $2,440,000, backlog of $2,100,000 and non-compete agreement of $330,000. The weighted average life of the acquired identifiable intangible assets subject to amortization was estimated at 10 years at the time of acquisition. All of the goodwill arising as a result of the acquisition is deductible for tax purposes. The allocation of the purchase price to the assets acquired and liabilities assumed of Garvey is not complete as of September 30, 2022 as the Company is continuing to gather information regarding Garvey's contingent liabilities and intangible assets.


The preliminary assignment of purchase consideration to the assets acquired and liabilities assumed is as follows (in thousands):
Working Capital1,709 
Property, plant, and equipment, net3,072 
Intangible assets21,350 
Other assets1,382 
Other liabilities(1,905)

3.    Revenue & Receivables

Revenue Recognition:

Performance obligations

The Company has contracts with customers for standard products and custom engineered products, and determines when and how to recognize revenue for each performance obligation based on the nature and type of contract.

Revenue from contracts with customers for standard products is recognized when legal title and significant risk and rewards has transferred to the customer, which is generally at the time of shipment. This is the point in time when control is deemed to transfer to the customer. The Company sells standard products to customers utilizing purchase orders. Payment terms for these types of contracts generally require payment within 30 to 60 days. Each standard product is deemed to be a single performance obligation and the amount of revenue recognized is based on the negotiated price. The transaction price for standard products is based on the price reflected in each purchase order. Sales incentives are offered to customers who purchase standard products and include offers such as volume-based discounts, rebates for priority customers, and discounts for early cash payments. These sales incentives are accounted for as variable consideration included in the transaction price. Accordingly, the Company reduces revenue for these incentives in the period which the sale occurs and is based on the most likely amount method for estimating the amount of consideration the Company expects to receive. These sales incentive estimates are updated each reporting period as additional information becomes available.

The Company also sells custom engineered products and services, which are contracts that are typically completed within one quarter but can extend beyond one year in duration. For custom engineered products, the transaction price is based upon the price stated in the contract. Variable consideration has not been identified as a significant component of transaction price for custom engineered products and services. The Company generally recognizes revenue for custom engineered products upon satisfaction of its performance obligation under the contract which typically coincides with project completion which is when the products and services are controlled by the customer. Control is typically achieved at the later of when legal title and significant risk and rewards have transferred to the customer or the customer has accepted the asset. These contracts often require either up front or installment payments. These types of contracts are generally accounted for as one performance obligation as the products and services are not separately identifiable. The promised services (such as inspection, commissioning, and installation) are essential in order for the delivered product to operate as intended on the customer’s site and the services are therefore highly interrelated with product functionality.

For most custom engineered products contracts, the Company determined that while there is no alternative use for the custom engineered products, the Company does not have an enforceable right to payment (which must include a reasonable profit margin) for performance completed to date in order to meet the over time revenue recognition criteria. Therefore, revenue is recognized at a point in time (when the contract is complete). For custom engineered products contracts that contain an enforceable right to payment (including reasonable profit margin) the Company satisfies the performance obligation over time and recognizes revenue based on the extent of progress towards completion of the performance obligation. The cost-to-cost measure of progress is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of work performed and transfer of control to the customers. Under the cost-to-cost measure of progress, the extent of progress toward completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the performance obligation. Revenues are recognized proportionally as costs are incurred.


Sales and other taxes collected with revenue are excluded from revenue. Shipping and handling costs incurred prior to shipment are considered activities required to fulfill the Company’s promise to transfer goods, and do not qualify as a separate performance obligation. Additionally, the Company offers standard warranties which are typically 12 months in duration for standard products and 24 to 36 months for custom engineered products. These types of warranties are included in the purchase price of the product and are deemed to be assurance-type warranties which are not accounted for as a separate performance obligation. Other performance obligations included in a contract (such as drawings, owner’s manuals, and training services) are immaterial in the context of the contract and are not recognized as a separate performance obligation.

For additional information on the Company’s revenue recognition policy refer to the consolidated financial statements included in the 2022 10-K.

Reconciliation of contract balances

The Company records a contract liability when cash is received prior to recording revenue. Some standard contracts require a down payment while most custom engineered contracts require installment payments. Installment payments for the custom engineered contracts typically require a portion due at inception while the remaining payments are due upon completion of certain performance milestones. For both types of contracts, these contract liabilities, referred to as customer advances, are recorded at the time payment is received and are included in Accrued liabilities on the Condensed Consolidated Balance Sheets. When the related performance obligation is satisfied and revenue is recognized, the contract liability is released into income.

The following table illustrates the balance and related activity for customer advances in the six months ended September 30, 2022 and September 30, 2021 (in thousands):

Customer advances (contract liabilities)September 30, 2022September 30, 2021
March 31, beginning balance$22,453 $15,373 
Additional customer advances received36,729 29,240 
Revenue recognized from customer advances included in beginning of period(22,453)(15,373)
Other revenue recognized from customer advances(13,125)(16,881)
Customer advances recorded from acquisitions 4,144 
Other (1)(1,353)73 
September 30, ending balance$22,251 $16,576 
    (1) Other includes the impact of foreign currency translation

Revenue was recognized prior to the right to invoice the customer which resulted in a contract asset balance in the amount of $3,554,000 and $2,410,000 as of September 30, 2022 and March 31, 2022, respectively. Contract assets are included in Prepaid expenses and other assets on the Condensed Consolidated Balance Sheets.

Remaining Performance Obligations

As of September 30, 2022, the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) was approximately $10,667,000. We expect to recognize approximately 37% of these sales over the next twelve months.

Disaggregated revenue

In accordance with FASB ASC Topic 606, the Company is required to disaggregate revenue into categories that depict how economic factors affect the nature, amount, timing and uncertainty of revenue and cash flows.

The following table illustrates the disaggregation of revenue by product grouping for the three and six months ended September 30, 2022 and September 30, 2021 (in thousands):

Three Months EndedSix Months Ended
Net Sales by Product GroupingSeptember 30, 2022September 30, 2021September 30, 2022September 30, 2021
Industrial Products$81,096 $84,230 $162,942 $163,841 
Crane Solutions90,087 83,911 169,418 163,578 
Engineered Products21,504 21,933 39,774 41,925 
Precision Conveyor Products39,010 33,539 79,809 67,718 
All other43 22 84 37 
Total$231,740 $223,635 $452,027 $437,099 

Industrial products include: manual chain hoists, electrical chain hoists, rigging/clamps, industrial winches, hooks, shackles, and other forged attachments. Crane solutions products include: wire rope hoists, drives and controls, crane kits and components, and workstations. Engineered products include: linear and mechanical actuators, lifting tables, rail projects, and actuation systems. Precision conveyor products include: low profile, flexible chain, large scale, sanitary and vertical elevation conveyor systems, as well as pallet system conveyors and accumulation systems. The All other product grouping includes miscellaneous revenue.

Practical expedients

Incremental costs to obtain a contract incurred by the Company primarily relate to sales commissions for contracts with a duration of one year or less. Therefore, these costs are expensed as incurred and are recorded in Selling expenses on the Condensed Consolidated Statements of Operations.

Unsatisfied performance obligations for contracts with an expected length of one year or less are not disclosed. Further, revenue from contracts with customers do not include a significant financing component as payment is generally expected within one year from when the performance obligation is controlled by the customer.

Accounts Receivable:

Under ASU 2016-13, the Company is required to remeasure expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. In addition to these factors, the Company establishes an allowance for doubtful accounts based upon the credit risk of specific customers, historical trends, and other factors. Accounts receivable are charged against the allowance for doubtful accounts once all collection efforts have been exhausted. Due to the short-term nature of such accounts receivable, the estimated amount of accounts receivable that may not be collected is based on aging of the accounts receivable balances.

The following table illustrates the balance and related activity for the allowance for doubtful accounts that is deducted from accounts receivable to present the net amount expected to be collected in the six months ended September 30, 2022 and September 30, 2021 (in thousands):

Allowance for doubtful accountsSeptember 30, 2022September 30, 2021
March 31, beginning balance$5,717 $5,686 
Bad debt expense493 291 
Less uncollectible accounts written off, net of recoveries(811)(1,003)
Allowance recorded from acquisitions 152 
Other (1)(295)84 
September 30, ending balance$5,104 $5,210 
(1) Other includes the impact of foreign currency translation


4.    Fair Value Measurements

FASB ASC Topic 820 “Fair Value Measurements and Disclosures” establishes the standards for reporting financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value on a recurring basis (at least annually). Under these standards, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the "exit price") in an orderly transaction between market participants at the measurement date.

ASC 820-10-35-37 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company's assumptions about the valuation techniques that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is separated into three levels based on the reliability of inputs as follows:

Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly, involving some degree of judgment.

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The availability of observable inputs can vary and is affected by a wide variety of factors, including the type of asset/liability, whether the asset/liability is established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are required to reflect those that market participants would use in pricing the asset or liability at the measurement date.

The Company uses quoted market prices when valuing its marketable securities and, consequently, the fair value is based on Level 1 inputs. These marketable securities consist of equity and fixed income securities. The Company primarily uses readily observable market data in conjunction with internally developed discounted cash flow valuation models when valuing its derivative portfolio and, consequently, the fair value of the Company’s derivatives is based on Level 2 inputs. The carrying amount of the Company's pension-related annuity contract is recorded at net asset value of the contract and, consequently, its fair value is based on Level 2 inputs and is included in Other assets on the Condensed Consolidated Balance Sheets. The carrying value of the Company’s Term Loan approximates fair value based on current market interest rates for debt instruments of similar credit standing and, consequently, their fair values are based on Level 2 inputs.


The following table provides information regarding financial assets and liabilities measured or disclosed at fair value (in thousands):
 Fair value measurements at reporting date using
 September 30,Quoted prices in active markets for identical assetsSignificant other observable inputsSignificant unobservable inputs
Description2022(Level 1)(Level 2)(Level 3)
Assets/(Liabilities) measured at fair value:
Marketable securities$10,183 $10,183 $ $ 
Annuity contract1,588  1,588  
Derivative Assets (Liabilities):
 Foreign exchange contracts(116) (116) 
 Interest rate swap 13,060  13,060  
 Cross currency swap 6,786  6,786  
Disclosed at fair value:   
Term Loan B$(472,909)$ $(472,909)$ 

 Fair value measurements at reporting date using
 March 31,Quoted prices in active markets for identical assetsSignificant other observable inputsSignificant unobservable inputs
Description2022(Level 1)(Level 2)(Level 3)
Assets/(Liabilities) measured at fair value:
Marketable securities$10,294 $10,294 $ $ 
Annuity contract1,884  1,884  
Derivative assets (liabilities):
 Foreign exchange contracts(217) (217) 
 Interest rate swap 3,613  3,613  
 Cross currency swap (8,713) (8,713) 
Disclosed at fair value:    
Term loan$(497,534)$ $(497,534)$ 

The Company does not have any non-financial assets and liabilities that are recognized at fair value on a recurring basis. At September 30, 2022, the Term Loan B has been recorded at carrying value, which approximates fair value.

Market gains, interest, and dividend income on marketable securities are recorded in Investment (income) loss on the Condensed Consolidated Statements of Operations.  Changes in the fair value of derivatives are recorded in foreign currency exchange (gain) loss or other comprehensive income (loss), to the extent that the derivative qualifies as a hedge under the provisions of FASB ASC Topic 815. Interest and dividend income on marketable securities are measured based upon amounts earned on their respective declaration dates.

There were no assets and liabilities recorded on a non-recurring basis during the six months ended September 30, 2022. Refer to the 2022 10-K for a full description of the assets and liabilities measured on a non-recurring basis that are included in the Company's March 31, 2022 balance sheet.


5.    Inventories

Inventories consisted of the following (in thousands):
September 30,
March 31,
At cost - FIFO basis:
Raw materials$148,908 $129,015 
Work-in-process28,422 28,093 
Finished goods