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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 APRIL 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 1-7891
DONALDSON COMPANY, INC.
(Exact name of registrant as specified in its charter)
Delaware 41-0222640
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1400 West 94th Street
Minneapolis, Minnesota 55431
(Address of principal executive offices, including zip code)
Registrant’s telephone number, including area code: (952) 887-3131
Not Applicable
(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, $5.00 par valueDCINew 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 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, 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 filer Smaller 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
As of May 31, 2022, 122,865,627 shares of the registrant’s common stock, par value $5.00 per share, were outstanding.




PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
DONALDSON COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In millions, except per share amounts)
(Unaudited)
 Three Months Ended
April 30,
Nine Months Ended
April 30,
 2022202120222021
Net sales$853.2 $765.0 $2,416.6 $2,080.8 
Cost of sales584.2 507.0 1,640.8 1,374.8 
Gross profit269.0 258.0 775.8 706.0 
Operating expenses158.0 148.6 461.6 433.3 
Operating income111.0 109.4 314.2 272.7 
Interest expense3.8 3.2 10.8 9.9 
Other income, net(4.1)(4.7)(6.4)(4.2)
Earnings before income taxes111.3 110.9 309.8 267.0 
Income taxes28.3 26.5 78.0 64.4 
Net earnings $83.0 $84.4 $231.8 $202.6 
Weighted average shares – basic 123.4 126.4 123.9 126.6 
Weighted average shares – diluted124.6 128.3 125.6 128.2 
Net earnings per share – basic$0.67 $0.67 $1.87 $1.60 
Net earnings per share – diluted$0.67 $0.66 $1.85 $1.58 
 
See Notes to Condensed Consolidated Financial Statements.
2


DONALDSON COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In millions)
(Unaudited)
 Three Months Ended
April 30,
Nine Months Ended
April 30,
 2022202120222021
Net earnings $83.0 $84.4 $231.8 $202.6 
Other comprehensive (loss) income:
Foreign currency translation (loss) income(42.8)(0.2)(70.4)36.3 
Pension liability adjustment, net of deferred taxes of $0.8, $(5.9), $(0.3) and $(7.6), respectively
(1.8)18.5 2.2 24.6 
Derivatives:
Gains (losses) on hedging derivatives, net of deferred taxes of $(0.8), $(0.2), $(1.2) and $0.1, respectively
2.6 1.0 4.3 (0.1)
Reclassifications of (gains) losses on hedging derivatives to net earnings, net of taxes of $0.1, $(0.1), $0.0 and $0.1, respectively
(0.2)0.1 (0.2)(0.4)
Total derivatives2.4 1.1 4.1 (0.5)
Net other comprehensive (loss) income(42.2)19.4 (64.1)60.4 
Comprehensive income $40.8 $103.8 $167.7 $263.0 
 
See Notes to Condensed Consolidated Financial Statements.
3


DONALDSON COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share amounts)
(Unaudited)
April 30,
2022
July 31,
2021
Assets  
Current assets:  
Cash and cash equivalents$168.7 $222.8 
Accounts receivable, less allowances of $5.7 and $7.0, respectively
585.5 552.7 
Inventories, net510.7 384.5 
Prepaid expenses and other current assets102.4 84.0 
Total current assets1,367.3 1,244.0 
Property, plant and equipment, net591.1 617.8 
Goodwill336.6 322.5 
Intangible assets, net73.8 61.6 
Other long-term assets150.4 154.3 
Total assets$2,519.2 $2,400.2 
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings$31.3 $48.5 
Accounts payable335.8 293.9 
Accrued employee compensation and related taxes106.7 126.8 
Income taxes payable25.4 17.7 
Dividend payable 27.6 
Other current liabilities107.3 92.1 
Total current liabilities606.5 606.6 
Long-term debt607.2 461.0 
Non-current income taxes payable74.7 80.7 
Deferred income taxes30.9 26.6 
Other long-term liabilities76.3 88.2 
Total liabilities1,395.6 1,263.1 
Stockholders’ equity:
Preferred stock, $1.00 par value, 1,000,000 shares authorized, none issued
  
Common stock, $5.00 par value, 240,000,000 shares authorized, 151,643,194 shares issued
758.2 758.2 
Additional paid-in capital12.9 5.8 
Retained earnings1,785.6 1,608.4 
Stock-based compensation plans17.0 12.8 
Accumulated other comprehensive loss(182.3)(118.2)
Treasury stock, 28,794,251 and 26,620,560 shares, respectively, at cost
(1,267.8)(1,129.9)
Total stockholders’ equity1,123.6 1,137.1 
Total liabilities and stockholders’ equity$2,519.2 $2,400.2 
 
See Notes to Condensed Consolidated Financial Statements.
4


DONALDSON COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine Months Ended
April 30,
20222021
Operating Activities  
Net earnings $231.8 $202.6 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization71.0 70.4 
Deferred income taxes3.0 (5.4)
Stock-based compensation expense17.0 11.6 
Other, net4.3 16.1 
Changes in operating assets and liabilities(183.2)10.3 
Net cash provided by operating activities143.9 305.6 
Investing Activities
Purchases of property, plant and equipment(56.8)(40.2)
Acquisitions, net of cash acquired(49.0) 
Net cash used in investing activities(105.8)(40.2)
Financing Activities
Proceeds from long-term debt249.3  
Repayments of long-term debt(90.0)(165.0)
Change in short-term borrowings(16.4)21.6 
Purchase of non-controlling interests (14.4)
Purchase of treasury stock(153.7)(78.7)
Dividends paid(81.8)(79.5)
Tax withholding payments for stock compensation transactions(1.7)(4.0)
Exercise of stock options11.5 24.5 
Net cash used in financing activities(82.8)(295.5)
Effect of exchange rate changes on cash(9.4)8.8 
Decrease in cash and cash equivalents(54.1)(21.3)
Cash and cash equivalents, beginning of period222.8 236.6 
Cash and cash equivalents, end of period$168.7 $215.3 
Supplemental Cash Flow Information
Income taxes paid$80.5 $76.5 
Interest paid$9.4 $9.0 
Supplemental Disclosure of Non-Cash Operating and Investing Transactions
Accrued property, plant and equipment additions$12.0 $7.3 
Leased assets obtained in exchange for new operating lease liabilities$12.9 $6.2 
Transfer of operating lease asset and operating lease liability$ $(9.2)
Recognized financing lease asset and finance lease liability$ $13.9 

See Notes to Condensed Consolidated Financial Statements.
5


DONALDSON COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(In millions, except per share amounts)
(Unaudited)
Three Months Ended April 30, 2022 and 2021
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Non-
Controlling
Interest
Stock-Based Compensation PlansAccumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Balance January 31, 2022$758.2 $12.0 $1,702.5 $ $15.5 $(140.1)$(1,231.3)$1,116.8 
Net earnings83.0 83.0 
Other comprehensive loss(42.2)(42.2)
Treasury stock acquired(38.1)(38.1)
Dividends declared0.1 0.1 
Stock compensation and other activity0.9  1.5 1.6 4.0 
Balance April 30, 2022$758.2 $12.9 $1,785.6 $ $17.0 $(182.3)$(1,267.8)$1,123.6 
Balance January 31, 2021$758.2 $5.1 $1,494.4 $ $13.2 $(143.0)$(1,053.5)$1,074.4 
Net earnings84.4 84.4 
Other comprehensive income19.4 19.4 
Treasury stock acquired(32.4)(32.4)
Dividends declared0.1 0.1 
Stock compensation and other activity0.3 0.2 (1.1)8.1 7.5 
Balance April 30, 2021$758.2 $5.4 $1,579.1 $ $12.1 $(123.6)$(1,077.8)$1,153.4 

Nine months ended April 30, 2022 and 2021
Common
Stock
Additional
Paid-in
Capital
Retained
Earnings
Non-
Controlling
Interest
Stock-Based Compensation PlansAccumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Balance July 31, 2021$758.2 $5.8 $1,608.4 $ $12.8 $(118.2)$(1,129.9)$1,137.1 
Net earnings231.8 231.8 
Other comprehensive loss(64.1)(64.1)
Treasury stock acquired(153.7)(153.7)
Dividends declared ($0.44 per share)
(54.2)(54.2)
Stock compensation and other activity7.1 (0.4)4.2 15.8 26.7 
Balance April 30, 2022$758.2 $12.9 $1,785.6 $ $17.0 $(182.3)$(1,267.8)$1,123.6 
Balance July 31, 2020$758.2 $ $1,430.0 $5.8 $15.9 $(184.0)$(1,033.0)$992.9 
Net earnings202.6 202.6 
Other comprehensive income60.4 60.4 
Treasury stock acquired(78.7)(78.7)
Dividends declared ($0.42 per share)
(52.9)(52.9)
Purchase of non-controlling interests2.2 (5.9)(3.7)
Stock compensation and other activity3.2 (0.6)0.1 (3.8)33.9 32.8 
Balance April 30, 2021$758.2 $5.4 $1,579.1 $ $12.1 $(123.6)$(1,077.8)$1,153.4 

See Notes to Condensed Consolidated Financial Statements.

6


DONALDSON COMPANY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
Note 1. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited Condensed Consolidated Financial Statements of Donaldson Company, Inc. and its subsidiaries (the Company) have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States (U.S.) and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair statement of earnings, comprehensive income, financial position, cash flows and changes in stockholders’ equity have been included and are of a normal recurring nature. Operating results for the three and nine months ended April 30, 2022 are not necessarily indicative of the results that may be expected for future periods. The year end Condensed Consolidated Balance Sheet information was derived from the Company’s Audited Consolidated Financial Statements but does not include all disclosures required by GAAP. For further information, refer to the Audited Consolidated Financial Statements and Notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 31, 2021.
Principles of Consolidation
The Condensed Consolidated Financial Statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated. The Company’s joint ventures are not majority-owned and are accounted for under the equity method.
Use of Estimates
The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Operating Environment
Russia and Ukraine
Following the Russia and Ukraine conflict, the Company complied with all sanctions, including those from the European Union, Great Britain and the U.S. and ceased direct product shipments into Russia and Belarus. Total revenues associated with customers in these areas are less than 2% of the Company’s net sales in the Condensed Consolidated Statements of Earnings. As of April 30, 2022, the Company has related asset exposure in the form of accounts receivables and inventories of approximately $6.8 million. The Company is monitoring the regional and global ramifications of the events unfolding.
Supply Chain Disruptions
The Company continues to experience supply chain disruptions, including global logistics and labor challenges and constrained supplies of steel, petrochemical products and filter media. These disruptions have increased the Company’s input costs significantly and extended lead times. The Company has undertaken steps to mitigate these negative impacts, such as increasing prices, evaluating alternative supply chain options, qualifying additional suppliers and strategic raw material purchases. This dynamic impacted results through the third quarter of fiscal 2022 and is expected to continue into fiscal 2023.
Inflation
In connection with the supply chain disruptions described above, the Company has experienced the effects of inflation related to raw materials and operating expenses, including freight, labor and energy. These inflationary pressures have had an adverse impact on profit margins, particularly in recent months. The Company continues to negotiate price increases with its customers and is working with its suppliers to mitigate these cost increases. Inflation impacted results through the third quarter of fiscal 2022 and is expected to continue into fiscal 2023.
New Accounting Standards Not Yet Adopted
The Company considers the applicability and impact of the Financial Accounting Standards Board’s (FASB) Accounting Standards Updates (ASUs) issued but not yet adopted.
7


In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. This ASU clarifies that an acquirer of a business should recognize and measure contract assets and contract liabilities in a business combination in accordance with ASU 2014-09, Revenue from Contracts with Customers (Topic 606) as if the entity had originated the contracts. The guidance is effective for fiscal years beginning after December 15, 2022, with early application permitted. This ASU is applicable to the Company’s fiscal year beginning in the first quarter of fiscal 2024. The Company is currently evaluating the impact the adoption will have on its financial statements.
Note 2. Acquisitions
Solaris Biotechnology Srl (Solaris)
On November 22, 2021, the Company acquired Solaris, headquartered in Porto Mantovano, Italy, with U.S. operations based in Berkeley, California, for cash consideration of approximately €41 million, or $45.7 million, net of cash acquired. Solaris designs and manufactures bioprocessing equipment, including bioreactors, fermenters and tangential flow filtration systems for use in food and beverage, biotechnology and other life sciences markets. Solaris is reported within the Company’s Industrial Filtration Solutions business in the Industrial Products segment. The Company assigned the fair values to the net assets acquired resulting in $27.2 million for goodwill and $20.8 million for intangible assets, none of which are expected to be deductible for tax purposes, as well as a deferred tax liability of $4.4 million. Net working capital was $2.1 million. Net sales of Solaris were immaterial to the Condensed Consolidated Statements of Earnings for the three and nine months ended April 30, 2022.
Pearson Arnold Industrial Services (PAIS)
On November 1, 2021, the Company acquired PAIS, headquartered in the U.S., for cash consideration of approximately $3.3 million, net of cash acquired. PAIS provides equipment, parts and services for dust, mist and fume collection systems, industrial fans and compressed air systems. PAIS is reported within the Industrial Products segment. The Company assigned the fair values to the net assets acquired resulting in $0.4 million for goodwill and $3.0 million for intangible assets, all of which are expected to be deductible for tax purposes. During the three months ended April 30, 2022, the Company adjusted working capital accounts of PAIS, resulting in a corresponding increase in the value of acquired goodwill of $1.8 million. Net sales of PAIS were immaterial to the Condensed Consolidated Statements of Earnings for the three and nine months ended April 30, 2022.
The purchase price allocations for these acquisitions are preliminary pending the outcome of the final valuations of the net assets acquired. Management expects to finalize the purchase accounting for these acquisitions by the first quarter of fiscal 2023. Pro forma financial information for these acquisitions has not been presented because the acquisitions were not material to the Company’s Condensed Consolidated Statements of Earnings. See Note 6 for goodwill and intangible assets acquired.
Note 3. Revenue
The Company recognizes revenue on a wide range of filtration solutions sold to customers in many industries around the globe. Most of the Company’s performance obligations within customer sales contracts are for manufactured filtration systems and replacement parts. The Company also performs limited services and installation. Customer contracts may include multiple performance obligations and the transaction price is allocated to each distinct performance obligation based on its relative standalone selling price.
Revenue Disaggregation
Net sales, generally disaggregated by location where the customer’s order was placed, were as follows (in millions):
Three Months Ended
April 30,
Nine Months Ended
April 30,
 2022202120222021
U.S. and Canada$348.8 $294.6 $963.6 $801.8 
Europe, Middle East and Africa (EMEA)250.9 232.7 717.2 621.7 
Asia Pacific161.6 169.0 495.6 474.5 
Latin America91.9 68.7 240.2 182.8 
Total net sales$853.2 $765.0 $2,416.6 $2,080.8 
See Note 17 for net sales disaggregated by segment and business unit.
8


Contract Assets and Liabilities
The satisfaction of performance obligations and the resulting recognition of revenue typically correspond with billing of the customer. In limited circumstances, the customer may be billed at a time later than when revenue is recognized, resulting in contract assets, which are reported in other current assets on the Condensed Consolidated Balance Sheets. Contract assets were $18.7 million and $14.9 million as of April 30, 2022 and July 31, 2021, respectively. In other limited circumstances, the customer may make a payment at a time earlier than when revenue is recognized and prior to the satisfaction of performance obligations, resulting in contract liabilities, which are reported in other current liabilities on the Condensed Consolidated Balance Sheets. Contract liabilities were $23.3 million and $12.2 million as of April 30, 2022 and July 31, 2021, respectively.
The Company will recognize revenue in future periods related to remaining performance obligations for certain open contracts. Generally, these contracts have terms of one year or less. The amount of revenue related to unsatisfied performance obligations in which the original duration of the contract is greater than one year is not significant. None of the Company’s contracts contained a significant financing component.
Costs to Obtain or Fulfill a Contract
The Company generally does not incur significant incremental costs related to obtaining or fulfilling a contract prior to the start of a project. The Company may incur certain fulfillment costs such as initial design or mobilization costs which are capitalized if they relate directly to the contract, if they are expected to generate resources that will be used to satisfy the Company’s performance obligation under the contract, and if they are expected to be recovered through revenues generated under the contract. Such costs, which are amortized over the life of the respective project, were not material for any period presented.
Note 4. Inventories, Net
The components of inventories, net were as follows (in millions):
April 30,
2022
July 31,
2021
Raw materials$201.3 $148.1 
Work in process57.1 43.2 
Finished products252.3 193.2 
Total inventories, net$510.7 $384.5 
Note 5. Property, Plant and Equipment, Net
The components of property, plant and equipment, net were as follows (in millions):
April 30,
2022
July 31,
2021
Land$26.1 $27.1 
Buildings401.1 410.8 
Machinery and equipment959.9 972.0 
Computer software143.4 144.3 
Construction in progress56.2 40.6 
Less accumulated depreciation(995.6)(977.0)
Total property, plant and equipment, net$591.1 $617.8 
Note 6. Goodwill and Intangible Assets
Goodwill
The Company allocates goodwill to reporting units within its Engine Products and Industrial Products segments. There were no dispositions or impairment charges recorded during the three and nine months ended April 30, 2022 and 2021. Goodwill is assessed for impairment annually during the third quarter of the fiscal year, or more frequently if events or changes in circumstances indicate the asset may be impaired. The Company performed its annual impairment assessment during the third quarter of fiscal 2022 and did not record any impairment as a result of this assessment.
9


Goodwill by reportable segment was as follows (in millions):
 Engine
Products Segment
Industrial
Products Segment
Total
Balance as of July 31, 2021$84.7 $237.8 $322.5 
Goodwill acquired 29.4 29.4 
Foreign currency translation(0.8)(14.5)(15.3)
Balance as of April 30, 2022$83.9 $252.7 $336.6 
Intangible Assets
Preliminary intangible assets recognized from the Solaris acquisition were $20.8 million, of which technology was $17.3 million with a 15 year useful life, trademarks and tradenames were $3.3 million with a 10 year useful life and backlog was $0.2 million with a six month useful life.
Preliminary intangible assets recognized from the PAIS acquisition were $3.0 million, all of which were customer relationships with a 20 year useful life. See Note 2 for the acquisitions.
Intangible asset classes were as follows (in millions):
Customer RelationshipsPatents, Trademarks and Technology
Gross Carrying AmountAccumulated AmortizationTotal Net ValueGross Carrying AmountAccumulated AmortizationTotal Net ValueTotal
Balance as of July 31, 2021$107.5 $(56.4)$51.1 $24.3 $(13.8)$10.5 $61.6 
Intangible assets acquired3.2 3.2 20.6  20.6 23.8 
Amortization expense (4.7)(4.7) (2.2)(2.2)(6.9)
Foreign currency translation(4.5)1.5 (3.0)(2.0)0.3 (1.7)(4.7)
Balance as of April 30, 2022$106.2 $(59.6)$46.6 $42.9 $(15.7)$27.2 $73.8 
Amortization expense was $2.4 million and $6.9 million for the three and nine months ended April 30, 2022, respectively, and was $2.2 million and $6.4 million for the three and nine months ended April 30, 2021, respectively. Amortization expense is included in operating expenses in the Condensed Consolidated Statements of Earnings.
Note 7. Long-Term Debt
As of April 30, 2022, there was $407.5 million available on the Company’s $500.0 million unsecured revolving credit facility that expires on May 21, 2026. In the third quarter of fiscal 2022, the Company borrowed a net $60.0 million on its unsecured revolving credit facility.
The Company entered into an agreement in which the Company would issue and sell two tranches of unsecured senior notes, totaling $150.0 million. The first tranche, issued in August 2021, was a $100.0 million 10 year note due 2031 at a fixed interest rate of 2.50%. The second tranche, issued in November 2021, was a $50.0 million seven year note due 2028 at a fixed interest rate of 2.12%.
Certain debt agreements contain financial covenants related to interest coverage and leverage ratios, as well as other non-financial covenants. As of April 30, 2022, the Company was in compliance with all such covenants.
Note 8. Income Taxes
The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The U.S. Internal Revenue Service has completed examinations of the Company’s U.S. federal income tax returns through 2017. With few exceptions, the Company is no longer subject to state and foreign income tax examinations by tax authorities for years before 2016.
As of April 30, 2022, gross unrecognized tax benefits were $19.6 million and accrued interest and penalties on these unrecognized tax benefits were $2.1 million. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income taxes in the Condensed Consolidated Statements of Earnings. The Company estimates within the next 12 months it is reasonably possible its uncertain tax positions could decrease by as much as $5.3 million due to lapses in statutes of limitation. The statutes of limitation periods for the Company’s various tax jurisdictions range from two years to 10 years.
10


The Company believes it is remote that any adjustment necessary to the reserve for income taxes over the next 12 months will be material. However, it is possible the ultimate resolution of audits or disputes may result in a material change to the reserve for income taxes, although the quantification of such potential adjustments cannot be made at this time.
Note 9. Earnings Per Share
Basic net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares. Diluted net earnings per share is computed by dividing net earnings by the weighted average number of outstanding common shares and common share equivalents relating to stock options and other stock incentive plans.
Basic and diluted net earnings per share calculations were as follows (in millions, except per share amounts):
Three Months Ended
April 30,
Nine Months Ended
April 30,
2022202120222021
Net earnings$83.0 $84.4 $231.8 $202.6 
Weighted average common shares outstanding
Weighted average common shares – basic123.4 126.4 123.9 126.6 
Dilutive impact of stock-based awards1.2 1.9 1.7 1.6 
Weighted average common shares – diluted124.6 128.3 125.6 128.2 
Net earnings per share – basic$0.67 $0.67 $1.87 $1.60 
Net earnings per share – diluted$0.67 $0.66 $1.85 $1.58 
Stock options excluded from net earnings per share calculation1.7  1.6 0.8 
Note 10. Stockholders’ Equity
Share Repurchases
The Company’s Board of Directors has authorized the repurchase of up to 13.0 million shares of common stock under the Company’s stock repurchase plan. This repurchase authorization is effective until terminated by the Board of Directors. During the nine months ended April 30, 2022, the Company repurchased 2.5 million shares for $153.7 million. As of April 30, 2022, the Company had remaining authorization to repurchase 5.8 million shares under this plan.
Dividends Paid and Declared
Dividends paid were 22.0 cents and 66.0 cents per share for the three and nine months ended April 30, 2022, respectively, and were 21.0 cents and 63.0 cents for the three and nine months ended April 30, 2021, respectively.
On May 25, 2022, the Company’s Board of Directors declared a cash dividend in the amount of 23.0 cents per common share, payable June 24, 2022, to shareholders of record as of June 9, 2022.
11


Note 11. Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss for the three months ended April 30, 2022 and 2021 were as follows (in millions):
Foreign
Currency
Translation
Adjustment
Pension
Benefits
Derivative
Financial
Instruments
Total
Balance as of January 31, 2022, net of tax$(71.6)$(70.7)$2.2 $(140.1)
Other comprehensive (loss) income before reclassifications and tax(42.8)(7.6)
(1)
3.4 (47.0)
Tax benefit (expense) 2.0 (0.8)1.2 
Other comprehensive (loss) income before reclassifications, net of tax(42.8)(5.6)2.6 (45.8)
Reclassifications, before tax 5.0 
(2)
(0.3)
(3)
4.7 
Tax (expense) benefit (1.2)0.1 (1.1)
Reclassifications, net of tax 3.8 (0.2)3.6 
Other comprehensive (loss) income, net of tax(42.8)(1.8)2.4 (42.2)
Balance as of April 30, 2022, net of tax$(114.4)$(72.5)$4.6 $(182.3)
Balance as of January 31, 2021, net of tax$(37.5)$(103.9)$(1.6)$(143.0)
Other comprehensive (loss) income before reclassifications and tax(0.2)21.4 
(1)
1.2 22.4 
Tax expense (5.2)(0.2)(5.4)
Other comprehensive (loss) income before reclassifications, net of tax(0.2)16.2 1.0 17.0 
Reclassifications, before tax 3.0 
(2)
0.2 
(3)
3.2 
Tax expense (0.7)(0.1)(0.8)
Reclassifications, net of tax 2.3 0.1 2.4 
Other comprehensive (loss) income, net of tax(0.2)18.5 1.1 19.4 
Balance as of April 30, 2021, net of tax$(37.7)$(85.4)$(0.5)$(123.6)
(1)In fiscal 2022 and 2021, pension settlement accounting was triggered. Remeasurements of the Company’s pension obligations resulted in adjustments to accumulated other comprehensive loss of $7.6 million and $21.4 million in fiscal 2022 and 2021, respectively, on the Condensed Consolidated Balance Sheets, see Note 13.
(2)Includes reclassifications of $1.1 million in fiscal 2022 and 2021, and also included net amortization of prior service costs and actuarial losses of $3.9 million and $1.9 million in fiscal 2022 and 2021, respectively, included in other income, net in the Condensed Consolidated Statements of Earnings, see Note 13.
(3)Relates to designated forward foreign currency exchange contracts that were reclassified from accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets to net sales, cost of sales and operating expenses in the Condensed Consolidated Statements of Earnings, see Note 14.
12


Changes in accumulated other comprehensive loss for the nine months ended April 30, 2022 and 2021 were as follows (in millions):
Foreign
Currency
Translation
Adjustment
Pension
Benefits
Derivative
Financial
Instruments
Total
Balance as of July 31, 2021, net of tax$(44.0)$(74.7)$0.5 $(118.2)
Other comprehensive (loss) income before reclassifications and tax(70.4)(9.3)
(1)
5.5 (74.2)
Tax benefit (expense) 2.4 (1.2)1.2 
Other comprehensive (loss) income before reclassifications, net of tax(70.4)(6.9)4.3 (73.0)
Reclassifications, before tax 11.8 
(2)
(0.2)
(3)
11.6 
Tax expense (2.7) (2.7)
Reclassifications, net of tax 9.1 (0.2)8.9 
Other comprehensive (loss) income, net of tax(70.4)2.2 4.1 (64.1)
Balance as of April 30, 2022, net of tax$(114.4)$(72.5)$4.6 $(182.3)
Balance as of July 31, 2020, net of tax$(74.0)$(110.0)$ $(184.0)
Other comprehensive income (loss) before reclassifications and tax36.3 25.4 
(1)
(0.2)61.5 
Tax (expense) benefit (6.2)0.1 (6.1)
Other comprehensive income (loss) before reclassifications, net of tax36.3 19.2 (0.1)55.4 
Reclassifications, before tax 6.8 
(2)
(0.5)
(3)
6.3 
Tax (expense) benefit (1.4)0.1 (1.3)
Reclassifications, net of tax 5.4 (0.4)5.0 
Other comprehensive income (loss), net of tax36.3 24.6 (