Enpro Inc. [NPO] Filings

10-Q 1 npo-20240630.htm 10-Q npo-20240630

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 June 30, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-31225

_________________________________________

ENPRO INC.

(Exact name of registrant, as specified in its charter)

_____________________________________


North Carolina						01-0573945
(State or other jurisdiction of incorporation)						(I.R.S. Employer Identification No.)
5605 Carnegie Boulevard
Suite 500
Charlotte
North Carolina						28209
(Address of principal executive offices)						(Zip Code)

(704) 731-1500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

__________________________________________


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $0.01 par value	NPO	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 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 ý 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 ý 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 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 filer	☒	Accelerated 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 ý

As of July 30, 2024, there were 20,974,525 shares of common stock of the registrant outstanding, which does not include 177,180 shares of common stock held by a subsidiary of the registrant and accordingly are not entitled to be voted. There is only one class of common stock.

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

ENPRO INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Quarters and Six Months Ended June 30, 2024 and 2023

(in millions, except per share amounts)


	Quarters Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Net sales	$	271.9	$	276.9	$	529.4	$	559.5
Cost of sales	152.9		162.1		304.2		328.6
Gross profit	119.0		114.8		225.2		230.9
Operating expenses:
Selling, general and administrative	70.3		73.2		147.7		144.7
Goodwill impairment	—		60.8		—		60.8
Other	0.7		0.2		1.5		1.0
Total operating expenses	71.0		134.2		149.2		206.5
Operating income (loss)	48.0		(19.4)		76.0		24.4
Interest expense	(10.7)		(12.4)		(21.0)		(24.1)
Interest income	1.2		3.8		3.3		7.6
Other expense	(2.1)		(0.6)		(7.6)		(2.4)
Income (loss) from continuing operations before income taxes	36.4		(28.6)		50.7		5.5
Income tax benefit (expense)	(9.7)		5.8		(11.5)		(2.3)
Income (loss) from continuing operations	26.7		(22.8)		39.2		3.2
Income from discontinued operations, including gain on sale, net of tax	—		—		—		11.4
Net income (loss)	26.7		(22.8)		39.2		14.6
Less: net loss attributable to redeemable non-controlling interests	—		(4.2)		—		(4.2)
Net income (loss) attributable to Enpro Inc.	$	26.7	$	(18.6)	$	39.2	$	18.8
Comprehensive income (loss)	$	18.6	$	(17.7)	$	27.6	$	26.8
Less: comprehensive loss attributable to redeemable non-controlling interests	—		(4.2)		—		(4.2)
Comprehensive income (loss) attributable to Enpro Inc.	$	18.6	$	(13.5)	$	27.6	$	31.0
Income (loss) attributable to Enpro Inc. common shareholders:
Income (loss) from continuing operations, net of tax	$	26.7	$	(18.6)	$	39.2	$	7.4
Income from discontinued operations, including gain on sale, net of tax	—		—		—		11.4
Net income (loss) attributable to Enpro Inc.	$	26.7	$	(18.6)	$	39.2	$	18.8
Basic earnings (loss) per share attributable to Enpro Inc.:
Continuing operations	$	1.27	$	(0.89)	$	1.87	$	0.35
Discontinued operations	—		—		—		0.55
Net income (loss) per share	$	1.27	$	(0.89)	$	1.87	$	0.90
Diluted earnings (loss) per share attributable to Enpro Inc.:
Continuing operations	$	1.27	$	(0.89)	$	1.86	$	0.35
Discontinued operations	—		—		—		0.55
Net income (loss) per share	$	1.27	$	(0.89)	$	1.86	$	0.90

See notes to consolidated financial statements (unaudited).

ENPRO INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended June 30, 2024 and 2023

(in millions)


	2024		2023
OPERATING ACTIVITIES OF CONTINUING OPERATIONS
Net income	$	39.2	$	14.6
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations:
Income from discontinued operations, net of taxes	—		(11.4)
Taxes related to sale of discontinued operations	—		(3.3)
Depreciation	11.8		12.3
Amortization	38.0		35.1
Goodwill impairment	—		60.8
Promissory note reserve	4.5		—
Deferred income taxes	(1.2)		(0.9)
Stock-based compensation	6.9		5.4
Other non-cash adjustments	3.3		2.2
Change in assets and liabilities, net of effects of acquisition and sale of businesses:
Accounts receivable, net	(17.3)		0.9
Inventories	2.1		(0.1)
Accounts payable	(6.3)		(10.9)

Other current assets and liabilities	(25.0)		(24.8)
Other non-current assets and liabilities	(6.5)		(1.4)
Net cash provided by operating activities of continuing operations	49.5		78.5
INVESTING ACTIVITIES OF CONTINUING OPERATIONS
Purchases of property, plant and equipment	(13.1)		(11.9)
Payments for capitalized internal-use software	(0.9)		(0.1)
Proceeds from sale of businesses, net	—		25.7
Purchase of short-term investments	—		(35.8)

Acquisition	(209.4)		—


Other	0.3		0.5
Net cash used in investing activities of continuing operations	(223.1)		(21.6)
FINANCING ACTIVITIES OF CONTINUING OPERATIONS
Proceeds from debt	52.5		—
Repayments of debt	(38.6)		(7.9)
Purchase of non-controlling interest	(17.9)		—


Dividends paid	(12.7)		(12.2)
Other	(2.3)		(1.8)
Net cash used in financing activities of continuing operations	(19.0)		(21.9)
CASH FLOWS OF DISCONTINUED OPERATIONS
Operating cash flows	—		(0.6)

Net cash used in discontinued operations	—		(0.6)
Effect of exchange rate changes on cash and cash equivalents	(1.3)		6.1
Net increase (decrease) in cash and cash equivalents	(193.9)		40.5
Cash and cash equivalents at beginning of period	369.8		334.4
Cash and cash equivalents at end of period	$	175.9	$	374.9

Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest	$	19.9	$	23.3
Income taxes, net of refunds	$	15.8	$	13.6
Non-cash investing and financing activities:
Non-cash acquisitions of property, plant, and equipment	$	2.1	$	0.7
Non-cash acquisitions of capitalized internal-use software	$	0.5	$	—

See notes to consolidated financial statements (unaudited).

ENPRO INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except share amounts)


	June 30, 2024		December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	175.9	$	369.8
Accounts receivable, net	136.2		116.7
Inventories	144.6		142.6

Prepaid expenses and other current assets	24.1		21.2


Total current assets	480.8		650.3
Property, plant and equipment, net	192.9		193.8
Goodwill	903.5		808.4
Other intangible assets, net	832.5		733.5

Other assets	112.2		113.5

Total assets	$	2,521.9	$	2,499.5
LIABILITIES AND EQUITY
Current liabilities
Current maturities of long-term debt	$	12.1	$	8.1

Accounts payable	61.8		68.7
Accrued expenses	103.0		119.6


Total current liabilities	176.9		196.4
Long-term debt	649.4		638.7
Deferred taxes and non-current income taxes payable	153.7		120.7
Other liabilities	111.5		116.1

Total liabilities	1,091.5		1,071.9
Commitments and contingencies
Redeemable non-controlling interests	—		17.9
Shareholders’ equity
Common stock – $.01 par value; 100,000,000 shares authorized; issued, 21,150,833 shares in 2024 and 21,086,678 shares in 2023	0.2		0.2
Additional paid-in capital	310.6		304.9
Retained earnings	1,154.6		1,128.0
Accumulated other comprehensive loss	(33.8)		(22.2)
Common stock held in treasury, at cost – 177,588 shares in 2024 and 178,151 shares in 2023	(1.2)		(1.2)
Total shareholders’ equity	1,430.4		1,409.7
Total liabilities and equity	$	2,521.9	$	2,499.5

See notes to consolidated financial statements (unaudited).

ENPRO INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Overview and Basis of Presentation

Overview

Enpro Inc. (“we,” “us,” “our,” “Enpro,” or the “Company”) is a leading-edge industrial technology company focused on critical applications across a diverse group of growing end markets such as semiconductor, industrial process, aerospace, food, photonics, biopharmaceuticals and life sciences. Enpro is a leader in applied engineering and designs, develops, manufactures, and markets proprietary, value-added products and solutions that safeguard a variety of critical environments.

Over the past several years, we have executed several strategic initiatives to create a portfolio of businesses that offer proprietary, industrial technology-related products and solutions with high barriers to entry, compelling margins, strong cash flow, and recurring aftermarket revenue in markets with favorable secular tailwinds.

Basis of Presentation

The accompanying interim consolidated financial statements are unaudited, and certain related information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted in accordance with Rule 10-01 of Regulation S-X. They were prepared following the same policies and procedures used in the preparation of our annual financial statements. The accompanying interim consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of results for the periods presented. The Consolidated Balance Sheet as of December 31, 2023 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2023. The results of operations for the interim periods are not necessarily indicative of the results for the fiscal year. These consolidated financial statements should be read in conjunction with our annual consolidated financial statements for the year ended December 31, 2023 included within our annual report on Form 10-K.

The preparation of 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.

All intercompany accounts and transactions between our consolidated operations have been eliminated.

Recently Issued Accounting Guidance

In November 2023, an accounting standards update was issued that improves reportable segment disclosures surrounding significant segment expenses. The amendments in this guidance are effective for financial statements issued for annual periods beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. We are currently evaluating this new guidance.

In December 2023, an accounting standards update was issued that will require changes in income tax disclosures. The standard is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The standard requires prospective adoption with the recognition that there will be a lack of comparability between reporting periods upon adopting this new standard. Alternatively, retrospective adoption is also permitted. We are currently evaluating this new guidance.

2. Acquisitions

Acquisition of business

On January 29, 2024, Enpro acquired all of the equity securities of Advanced Micro Instruments, Inc. ("AMI"), a privately held company, for $209.4 million, net of cash acquired. In connection with the acquisition of AMI, there were $0.2 million and $3.5 million of acquisition-related costs incurred during the quarter and six months ended June 30, 2024 and included in selling, general, and administrative expense in the accompanying Consolidated Statements of Operations.

AMI is a leading provider of highly-engineered, application-specific analyzers and sensing technologies that monitor critical parameters to maintain infrastructure integrity, enable process efficiency, enhance safety, and facilitate the clean energy transition. AMI is included within the Sealing Technologies segment.

Based in Costa Mesa, California, AMI serves customers in the midstream natural gas, biogas, industrial processing, cryogenics, food processing, laboratory wastewater and aerospace markets. The company offers a portfolio of oxygen, hydrogen, sulfide and moisture analyzers and proprietary sensing capabilities that detect contaminants in a variety of processes, including natural gas and biogas streams, which enable operators to avoid flaring and, thereby, reduce CO2 emissions.

The purchase price of AMI was allocated to the assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. The excess of the purchase price over the estimated fair value of the identifiable assets acquired less the liabilities assumed is reflected as goodwill, which is attributable primarily to the value of the workforce and the ongoing operations of the business. Goodwill recorded as part of the purchase price was $98.6 million, none of which is tax deductible. Identifiable intangible assets acquired as part of the acquisition totaled $138.1 million, consisting of indefinite and definite-lived intangible assets. Indefinite lived intangible assets relates solely to future products that were in development as of the acquisition date. We will begin amortizing this asset over its estimated life once these products in development become commercially available. Definite-lived intangible assets include proprietary technology, customer relationships, trade names, and non-competition agreements. Inventory acquired included an adjustment to fair value of $1.7 million, all of which was amortized to cost of goods sold in the first quarter of 2024.

Identifiable intangible assets acquired are as follows:


			Weighted-average amortization period
Definite-lived intangible assets acquired:	(in millions)		(years)
Customer relationships	$	12.0	15.0
Existing technology	106.0		15.0
Trademarks	5.0		10.0
Other	1.1		3.3
Total definite-lived intangible assets	124.1		14.7

Indefinite-lived intangible assets acquired:
In-process research and development	14.0

Identifiable intangible assets acquired	$	138.1

We will continue to evaluate the purchase price allocation of this acquisition, including the value of intangible assets and income tax assets and liabilities and adjust this allocation as appropriate. The allocation of purchase price was revised during the second quarter of 2024 to increase deferred income tax liabilities by $3.0 million with an offsetting $3.0 million increase to goodwill. The allocation of purchase price may be revised further during the balance of the one-year measurement period as our initial estimates below are finalized. The following table represents the preliminary allocation of purchase price as of June 30, 2024:


	(in millions)
Accounts receivable	$	3.3
Inventories	5.2
Property, plant, and equipment	0.2
Goodwill	98.6
Other intangible assets	138.1
Other assets	0.6
Deferred income taxes	(34.9)
Liabilities assumed	(1.7)
	$	209.4

Sales of $9.5 million and $16.8 million and pre-tax income of $2.9 million and $3.7 million for AMI are included in our Consolidated Statements of Operations for the quarter and six months ended June 30, 2024, respectively. The following unaudited pro forma condensed consolidated financial results of operations for the quarters and six months ended June 30, 2024 and 2023 are presented as if the acquisition had been completed on January 1, 2023:


	Quarters Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(in millions)
Pro forma net sales	$	271.9	$	285.2	$	532.2	$	576.9
Pro forma income (loss) from continuing operations	$	26.9	$	(23.6)	$	41.6	$	0.7

These amounts have been calculated after applying our accounting policies and adjusting the results of AMI to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to intangible assets had been applied as of January 1, 2023. The supplemental pro forma net income for the quarter and six months ended June 30, 2024 was adjusted to exclude $0.2 million and $3.5 million, respectively, of pre-tax acquisition-related costs related to AMI. The pro forma financial results have been prepared for comparative purposes only and do not reflect the effect of any potential synergies as a result of the integration of AMI. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the acquisition of AMI occurred on January 1, 2023, or of future results of Enpro Inc.

Acquisition of non-controlling interest

In connection with our acquisition of Alluxa in October 2020, three Alluxa executives (the "Alluxa Executives") received rollover equity interests in the form of approximately 7% of the total equity interest of an entity we formed for the purpose of acquiring Alluxa (the "Alluxa Acquisition Subsidiary"). Pursuant to the limited liability operating agreement (the "Alluxa LLC Agreement") that was entered into with the completion of the transaction, each Alluxa Executive had the right to sell to us, and we had the right to purchase from each Alluxa Executive (collectively, the "Put and Call Rights"), one-third of the Alluxa Executive equity interests in the Alluxa Acquisition Subsidiary during each of three exercise periods in 2024, 2025 and 2026, with any amount not sold or purchased in a prior exercise period being carried forward to the subsequent exercise periods. In January 2024, we agreed with the Alluxa Executives to change the terms of the Put and Call Rights so that all outstanding equity interests could be acquired in 2024. In February of 2024, we acquired all outstanding equity interests in the Alluxa Acquisition Subsidiary for $17.9 million, which was the minimum fixed price set in the Alluxa LLC Agreement. As this transaction was for the acquisition of all remaining shares of a consolidated subsidiary with no change in control, it was recorded within shareholder's equity and as a financing cash flow in the Consolidated Statement of Cash Flows. Enpro is now the sole owner of Alluxa.

3. Income Taxes

Our income tax expense and resulting effective tax rate are based upon the estimated annual effective tax rates applicable for the respective periods adjusted for the effect of items required to be treated as discrete in the interim periods. This estimated annual effective tax rate is affected by the relative proportions of revenue and income before taxes in the jurisdictions in which we operate. Based on the geographical mix of earnings, our annual effective tax rate fluctuates based on the portion of our profits earned in each jurisdiction.

The effective tax rates for the quarters ended June 30, 2024 and 2023 were an expense of 26.7% and a benefit of 20.0%, respectively. The effective tax rate for the quarter ended June 30, 2024 is higher than the U.S. Federal tax rate primarily driven by higher tax rates in most foreign jurisdictions and state tax on domestic earnings partially offset by various tax credits. The effective tax rate for the quarter ended June 30, 2023 is lower than the U.S. Federal tax rate primarily driven by impairment of non-deductible tax goodwill partially offset by higher tax rates in most foreign jurisdictions.

The effective tax rates for the six months ended June 30, 2024 and 2023 were 22.7% and 43.0%, respectively. The effective tax rate for the six months ended June 30, 2024 is higher than the U.S. Federal tax rate primarily driven by higher tax rates in most foreign jurisdictions partially offset by favorable state amended return filings and additional tax benefit related to share-based payment awards. The effective tax rate for the six months ended June 30, 2023 is higher than the U.S. Federal tax rate primarily driven by impairment of non-deductible tax goodwill and higher tax rates in most foreign jurisdictions partially offset by the release of a valuation allowance on certain foreign net operating losses and a tax benefit related to share-based payment awards.

The Organization for Economic Co-operation and Development (the “OECD”) has introduced a framework to implement a global minimum corporate tax of 15%, referred to as Pillar Two, that is effective for tax years beginning in 2024. While it is uncertain whether the United States will enact legislation to adopt Pillar Two, certain countries in which we operate have adopted legislation to enact Pillar Two. The adoption of Pillar Two has had no impact on our income tax expense for the six months ended June 30, 2024 and we expect there to be minimal impact in subsequent quarters.

4. Earnings Per Share


	Quarters Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(in millions, except per share amounts)
Numerator (basic and diluted):
Income (loss) from continuing operations	$	26.7	$	(22.8)	$	39.2	$	3.2
Less: net loss attributable to redeemable non-controlling interests	—		(4.2)		—		(4.2)
Income (loss) from continuing operations attributable to Enpro Inc.	26.7		(18.6)		39.2		7.4
Income from discontinued operations, net of tax	—		—		—		11.4
Net income (loss)	$	26.7	$	(18.6)	$	39.2	$	18.8
Denominator:
Weighted-average shares – basic	21.0		20.9		20.9		20.9
Share-based awards	0.1		—		0.2		—

Weighted-average shares – diluted	21.1		20.9		21.1		20.9
Basic earnings (loss) per share:
Continuing operations	$	1.27	$	(0.89)	$	1.87	$	0.35
Discontinued operations	—		—		—		0.55
Basic earnings (loss) per share	$	1.27	$	(0.89)	$	1.87	$	0.90
Diluted earnings (loss) per share:
Continuing operations	$	1.27	$	(0.89)	$	1.86	$	0.35
Discontinued operations	—		—		—		0.55
Diluted earnings (loss) per share	$	1.27	$	(0.89)	$	1.86	$	0.90

5. Inventories


	June 30, 2024		December 31, 2023
	(in millions)
Finished products	$	53.3	$	53.6
Work in process	30.1		28.4
Raw materials	61.2		60.6





Total inventories	$	144.6	$	142.6

6. Goodwill and Other Intangible Assets

The changes in the net carrying value of goodwill by reportable segment for the six months ended June 30, 2024 are as follows:


	Sealing Technologies		Advanced Surface Technologies		Total
	(in millions)
Goodwill as of December 31, 2023	$	276.2	$	532.2	$	808.4
Acquisition of business	98.6		—		98.6


Foreign currency translation	(3.5)		—		(3.5)

Goodwill as of June 30, 2024	$	371.3	$	532.2	$	903.5

The goodwill balances reflected above at June 30, 2024 are net of accumulated impairment losses of $27.8 million for the Sealing Technologies segment and $126.0 million for the Advanced Surface Technologies segment.

Identifiable intangible assets are as follows:


	June 30, 2024				December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
	(in millions)
Definite-Lived:
Customer relationships	$	496.8	$	197.7	$	486.6	$	184.8
Existing technology	570.4		125.6		465.2		106.1
Trademarks	69.6		32.2		64.9		29.6
Other	28.4		22.0		27.4		20.9
	1,165.2		377.5		1,044.1		341.4
Indefinite-Lived:
In-process research and development	14.0		—		—		—
Trademarks	30.8		—		30.8		—
Total	$	1,210.0	$	377.5	$	1,074.9	$	341.4

Amortization for the quarters and six months ended June 30, 2024 and 2023 were $19.1 million, $17.3 million, $37.7 million, and $34.7 million, respectively.

The estimated amortization expense for definite-lived (amortized) intangible assets for the next five years is as follows (in millions):


2024	$	77.1
2025	$	76.8
2026	$	73.1
2027	$	72.5
2028	$	71.8

7. Accrued Expenses


	June 30, 2024		December 31, 2023
	(in millions)
Salaries, wages and employee benefits	$	37.3	$	56.0
Interest	4.4		4.2
Environmental	10.0		8.2

Income taxes	12.9		10.0
Taxes other than income taxes	6.0		5.1
Operating lease liabilities	10.0		10.0

Other	22.4		26.1
	$	103.0	$	119.6

8. Long-Term Debt

Senior Secured Credit Facilities

On December 17, 2021, we entered into a Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) among the Company and our subsidiary, EnPro Holdings, Inc. ("EnPro Holdings"), as borrowers, certain foreign subsidiaries of the Company from time to time party thereto, as designated borrowers, the guarantors party thereto, the lenders

party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

The Amended Credit Agreement provides for credit facilities in the initial aggregate principal amount of $1,007.5 million, consisting of a five-year, senior secured revolving credit facility of $400.0 million (the “Revolving Credit Facility”), a $142.5 million senior secured term loan facility in replacement of our existing senior secured term loan facility, maturing September 25, 2024 (the “Term Loan A-1 Facility”), a five-year, senior secured term loan facility of $315.0 million (the “Term Loan A-2 Facility”) and a 364-day, senior secured term loan facility of $150.0 million (the “364-Day Facility” and together with the Revolving Credit Facility, the Term Loan A-1 Facility and the Term Loan A-2 Facility, the “Facilities”). The Amended Credit Agreement also provides that we may seek incremental term loans and/or additional revolving credit commitments in an amount equal to the greater of $275.0 million and 100% of consolidated EBITDA for the most recently ended four-quarter period for which we have reported financial results, plus additional amounts based on a consolidated senior secured leverage ratio. The Amended Credit Agreement became effective on December 17, 2021.

Borrowings under the 364-Day Facility bore interest at an annual rate of LIBOR plus 1.50% or base rate plus 0.50%. Initially, borrowings under the Facilities (other than the 364-Day Facility) bore interest at an annual rate of LIBOR plus 1.75% or base rate plus 0.75%, although these interest rates were subject to incremental increase or decrease based on a consolidated total net leverage ratio. On November 8, 2022, we entered into a First Amendment to the Amended Credit Agreement, which replaced the LIBOR-based interest rate option with an option based on Term SOFR ("Secured Overnight Financing Rate") plus (i) a credit spread adjustment of 0.10% and (ii) 1.75%, again subject to incremental increase or decrease based on a consolidated total net leverage ratio. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility at an annual rate of 0.225%, which rate is also subject to incremental increase or decrease based on a consolidated total net leverage ratio.

The Term Loan A-1 Facility amortized on a quarterly basis in an annual amount equal to 2.50% of the original principal amount of the Term Loan A-1 Facility ($150.0 million) in year one after the closing, 5.00% of such original principal amount in year two and 1.25% of such original principal amount in each of the first three quarters of year three, with the remaining outstanding principal amount payable at maturity. The Term Loan A-2 Facility amortizes on a quarterly basis in an annual amount equal to 2.5% of the original principal amount of the Term Loan A-2 Facility in each of years one through three, 5.0% of such original principal amount in year four and 1.25% of such original principal amount in each of the first three quarters of year five, with the remaining outstanding principal amount payable at maturity. The 364-Day Facility did not amortize and was repaid in full in the third quarter of 2022. On July 26, 2023, we voluntarily prepaid all outstanding borrowings and accrued and unpaid interest under the Term Loan A-1 Facility (a remaining principal balance of $133.1 million and accrued interest of $0.6 million). The Facilities are subject to prepayment with the net cash proceeds of certain asset sales, casualty or condemnation events and non-permitted debt issuances.

The Company and EnPro Holdings are the permitted borrowers under the Facilities. The Company may also from time to time designate any of its wholly owned foreign subsidiaries as a borrower under the Revolving Credit Facility. Each of the Company’s domestic subsidiaries (other than any subsidiaries that may be designated as “unrestricted” by the Company from time to time, and inactive subsidiaries) is required to guarantee the obligations of the borrowers under the Facilities, and each of the Company’s existing domestic subsidiaries (other than inactive subsidiaries) has entered into the Amended Credit Agreement to provide such a guarantee.

Borrowings under the Facilities are secured by a first-priority pledge of certain assets. The Amended Credit Agreement contains certain financial covenants and required financial ratios including a maximum consolidated total net leverage and a minimum consolidated interest coverage as defined in the Amended Credit Agreement. We were in compliance with all covenants of the Amended Credit Agreement as of June 30, 2024.

The borrowing availability under our Revolving Credit Facility at June 30, 2024 was $372.0 million after giving consideration to $10.0 million of outstanding letters of credit and $18.0 million of outstanding borrowings. The balance of borrowings outstanding under the Term Loan A-2 Facility at June 30, 2024 was $295.3 million.

Senior Notes

On October 17, 2018, we completed the offering of $350.0 million aggregate principal amount of 5.75% Senior Notes due 2026 (the "Senior Notes"). The Senior Notes were issued to investors at 100% of the principal amount thereof. The Senior Notes are unsecured, unsubordinated obligations of Enpro and mature on October 15, 2026. Interest on the Senior Notes accrues at a rate of 5.75% per annum and is payable semi-annually in cash in arrears on April 15 and October 15 of each year. The Senior Notes are required to be guaranteed on a senior unsecured basis by each of Enpro’s existing and future direct and indirect domestic subsidiaries that is a borrower under, or guarantees, our indebtedness under the Revolving Credit Facility or

guarantees any other Capital Markets Indebtedness (as defined in the indenture governing the Senior Notes) of Enpro or any of the guarantors. We may, on any one or more occasions, redeem all or a part of the Senior Notes at specified redemption prices plus accrued and unpaid interest.

The indenture governing the Senior Notes includes covenants that restrict our ability to engage in certain activities, including incurring additional indebtedness, paying dividends and repurchasing shares of our common stock, subject in each case to specified exceptions and qualifications set forth in the indenture. The indenture further requires us to offer to repurchase the Senior Notes at a price equal to 100.0% of the principal amount thereof plus accrued and unpaid interest, in the event that the net cash proceeds of certain asset sales are not reinvested in acquisitions, capital expenditures, or used to repay or otherwise reduce specified indebtedness within a specified period, to the extent the remaining net proceeds exceed a specified amount.

We were in compliance with all of the covenants under the indenture governing the Senior Notes as of June 30, 2024.

9. Pension

The components of net periodic benefit cost for our U.S. and foreign defined benefit pension plans for the quarters and six months ended June 30, 2024 and 2023, are as follows:


	Quarters Ended June 30,				Six Months Ended June 30,
	Pension Benefits					Pension Benefits
	2024		2023				2024		2023
	(in millions)
Service cost	$	0.1	$	0.2			$	0.2	$	0.3
Interest cost	3.2		3.5				6.4		6.8
Expected return on plan assets	(3.5)		(3.5)				(7.1)		(6.9)

Amortization of net loss	0.4		0.4				0.8		0.8

Net periodic benefit cost	$	0.2	$	0.6			$	0.3	$	1.0

We do not anticipate making any contributions to our U.S. defined benefit pension plans in calendar year 2024.

In the second quarter of 2024, Enpro initiated a plan to terminate and settle its remaining defined benefit pension plan in the United States. The termination and settlement process for this frozen plan, which preserves retirement benefits due to participants but changes the ultimate payor of such benefits, is expected to be completed by the end of 2025. At June 30, 2024, approximately $16.5 million of pension assets recorded in other assets on our consolidated balance sheet and substantially all pension losses recorded in accumulated other comprehensive loss on our consolidated balance sheet relate to this plan.

Tables showing the changes in accumulated other comprehensive income (loss) and the balance at June 30, 2024 are included in Note 1 4, "Accumulated Other Comprehensive Income (Loss)".

10. Shareholders' Equity

The quarterly changes in shareholders' equity during the six months ended June 30, 2024 are as follows:


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity		Redeemable Non-controlling Interests
(in millions, except per share data)	Shares	Amount
Balance, December 31, 2023	21.0	$	0.2	$	304.9	$	1,128.0	$	(22.2)	$	(1.2)	$	1,409.7	$	17.9

Net income	—	—		—		12.5		—		—		12.5		—
Other comprehensive loss	—	—		—		—		(3.5)		—		(3.5)		—
Dividends ($0.30 per share)	—	—		—		(6.3)		—		—		(6.3)		—

Incentive plan activity	—	—		1.5		—		—		—		1.5		—
Acquisition of Alluxa minority ownership	—	—		—		—		—		—		—		(17.9)

Balance, March 31, 2024	21.0	$	0.2	$	306.4	$	1,134.2	$	(25.7)	$	(1.2)	$	1,413.9	$	—
Net income	—	—		—		26.7		—		—		26.7		—
Other comprehensive loss	—	—		—		—		(8.1)		—		(8.1)		—
Dividends ($0.30 per share)	—	—		—		(6.3)				—		(6.3)		—
Share repurchases	—	—		—		—		—		—		—		—
Incentive plan activity	—	—		4.2		—		—		—		4.2		—

Balance, June 30, 2024	21.0	$	0.2	$	310.6	$	1,154.6	$	(33.8)	$	(1.2)	$	1,430.4	$	—

The quarterly changes in shareholders' equity during the six months ended June 30, 2023 are as follows:


	Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Shareholders' Equity		Redeemable Non-controlling Interests
(in millions, except per share data)	Shares	Amount
Balance, December 31, 2022	20.8	$	0.2	$	299.2	$	1,130.2	$	(33.3)	$	(1.2)	$	1,395.1	$	17.9

Net income	—	—		—		37.4		—		—		37.4		—
Other comprehensive income	—	—		—		—		7.1		—		7.1		—
Dividends ($0.29 per share)	—	—		—		(6.1)		—		—		(6.1)		—

Incentive plan activity	0.1	—		1.6		—		—		—		1.6		—

Balance, March 31, 2023	20.9	$	0.2	$	300.8	$	1,161.5	$	(26.2)	$	(1.2)	$	1,435.1	$	17.9
Net loss	—	—		—		(18.6)		—		—		(18.6)		(4.2)
Other comprehensive income	—	—		—		—		5.1		—		5.1		—
Dividends ($0.29 per share)	—	—		—		(6.1)				—		(6.1)		—

Incentive plan activity	—	—		3.1		—		—		—		3.1		—
Other	—	—		(4.2)		—		—		—		(4.2)		4.2
Balance, June 30, 2023	20.9	$	0.2	$	299.7	$	1,136.8	$	(21.1)	$	(1.2)	$	1,414.4	$	17.9

We intend to declare regular quarterly cash dividends on our common stock, as determined by our board of directors, after taking into account our current and projected cash flows, earnings, financial position, debt covenants and other relevant factors. In accordance with the board of directors' declaration, total dividend payments of $12.7 million were made during the six months ended June 30, 2024.

In August 2024, our board of directors declared a dividend of $0.30 per share, payable on September 18, 2024, to all shareholders of record as of September 4, 2024.

In October 2022, our board of directors authorized the expenditure of up to $50.0 million for the repurchase of our outstanding common shares through October 2024. We have not made any repurchases under this authorization.

In 2023, we changed our performance share awards so that awards granted under our equity compensation plan to executives and other key employees are to be paid in shares of our common stock at the end of the three-year vesting period. Awards issued in 2022 will be payable in cash at the end of the vesting period based upon the performance of Enpro’s share price relative to a diverse industry peer group. Compensation expense related to performance shares granted in 2023 and 2024 is computed using the fair value of the awards on the grant date, which is expensed on a straight-line basis over the three-year vesting period. Compensation expense for awards granted in 2022 is computed based upon the current estimate of total projected cash to be paid at vesting and the portion of the vesting period that has elapsed.

In February 2024, we issued stock options to certain key executives for approximately 50,000 common shares with an exercise price of $156.20 per share. The options vest pro-rata on the first, second and third anniversaries of the grant date, subject to continued employment. No options have a term greater than 10 years.

We determine the fair value of stock options using the Black-Scholes option pricing formula as of the grant date. Key inputs into this formula include expected term, expected volatility, expected dividend yield, and the risk-free interest rate. This fair value is amortized on a straight-line basis over the vesting period and recorded in selling, general and administrative costs on our Consolidated Income Statement.

The expected term represents the period that our stock options are expected to be outstanding and is determined based on historical experience of similar awards, given the contractual terms of the awards, vesting schedules, and expectations of future employee behavior. The fair value of stock options reflects a volatility factor calculated using historical market data for Enpro's common stock. The time frame used was approximated as a six-year period from the grant date for the awards. The dividend

assumption is based on our expectations as of the grant date. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining life equal to the option's expected life.

The option awards issued in February 2024 had a fair value of $66.84 per share at their grant date. The following assumptions were used to estimate the fair value of the 2024 option awards:


Average expected term	6 years
Expected volatility	40.61	%
Risk-free interest rate	4.33	%
Expected dividend yield	0.77	%

11. Business Segment Information

We aggregate our operating businesses into two reportable segments, Sealing Technologies and Advanced Surface Technologies. Factors considered in determining our reportable segments include the economic similarity of the businesses, the nature of products sold, or solutions provided, the production processes and the types of customers and distribution methods.

Our Sealing Technologies segment engineers and manufactures value-added products and solutions that safeguard a variety of critical environments, including: metallic, non-metallic and composite material gaskets; dynamic seals; compression packing; elastomeric components; custom-engineered mechanical seals used in diverse applications; hydraulic components; test, measurement and sensing applications; sanitary gaskets; hoses and fittings for hygienic process industries; fluid transfer products for the pharmaceutical and biopharmaceutical industries; and commercial vehicle solutions used in wheel-end and suspension components that customers rely upon to ensure safety on our roadways.

These products are used in a variety of markets, including chemical and petrochemical processing, nuclear energy, hydrogen, natural gas, food and biopharmaceutical processing, primary metal manufacturing, mining, water and waste treatment, commercial vehicle, aerospace (including commercial space), medical, filtration and semiconductor fabrication. In all these industries, the performance and durability of our proprietary products and solutions are vital for the safety and environmental protection of our customers’ processes. Many of our products and solutions are used in highly demanding applications, often in harsh environments, where the cost of failure is extremely high relative to the cost of our offerings to our customers. These environments include those where extreme temperatures, extreme pressures, corrosive agents, strict tolerances, or worn equipment create challenges for product performance. Sealing Technologies offers customers widely recognized applied engineering, innovation, process know-how and enduring reliability, driving a lasting aftermarket for many of our products and solutions.

Our Advanced Surface Technologies (AST) segment applies proprietary technologies, processes, and capabilities to deliver a highly differentiated suite of products and solutions for challenging applications in high-growth markets. The segment’s products and solutions are used in demanding environments requiring performance, precision and repeatability, with a low tolerance for failure. AST’s products and solutions include: (i) cleaning, coating, testing, refurbishment and verification for critical components and assemblies used in semiconductor manufacturing equipment, with meaningful exposures to state-of-the-art advanced node chip applications; (ii) designing, manufacturing and selling specialized optical filters and proprietary thin-film coatings for the most challenging applications in the industrial technology, life sciences, and semiconductor markets; (iii) engineering and manufacturing complex front-end wafer processing sub-systems and new and refurbished electrostatic chuck pedestals for the semiconductor equipment industry; and (iv) engineering and manufacturing edge-welded metal bellows for the semiconductor equipment industry and critical applications in the space, aerospace and defense markets. In many instances, AST capabilities drive products and solutions that enable the performance of our customers’ high-value processes through an entire life cycle.

We measure operating performance based on segment earnings before interest, income taxes, depreciation, amortization, and other selected items ("Adjusted Segment EBITDA"), which is segment revenue reduced by operating expenses and other costs identifiable with the segment, excluding acquisition and divestiture expenses, restructuring costs, impairment charges, non-controlling interest compensation, amortization of the fair value adjustment to acquisition date inventory, and depreciation and amortization. Adjusted Segment EBITDA is not defined under GAAP and may not be comparable to similarly-titled measures used by other companies. Corporate expenses include general corporate administrative costs. Segments non-operating expenses and income, corporate expenses, net interest expense, and income taxes are not included in the computation of Adjusted Segment EBITDA. The accounting policies of the reportable segments are the same as those for Enpro.

In the first quarter of 2024, we refined our definition of Adjusted Segment EBITDA and corporate expenses to include certain other income or expenses previously reported in other expense, net. These items were primarily comprised of bank fees and certain foreign exchange transaction gains and losses. As a result of this change, for the quarter ended June 30, 2023, we recast our results to increase Sealing Technologies Adjusted Segment EBITDA by $0.1 million and increased corporate expenses by $0.6 million. For the six months ended June 30, 2023, we increased Sealing Technologies Adjusted Segment EBITDA by $0.1 million, decreased Advanced Surface Technologies Adjusted Segment EBITDA by $0.1 million, and increased corporate expenses by $0.9 million.

Non-controlling interest compensation allocation represents compensation expense associated with a portion of the rollover equity from the acquisition of Alluxa. This expense was recorded in selling, general, and administrative expenses in our Consolidated Statements of Operations and is directly related to the terms of the acquisition. In February 2024, Enpro acquired all of the Alluxa non-controlling interests and became the sole owner of Alluxa.

Segment operating results and other financial data for the quarters and six months ended June 30, 2024 and 2023 were as follows:


	Quarters Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
	(in millions)
Sales
Sealing Technologies	$	184.0	$	176.7	$	355.6	$	350.0
Advanced Surface Technologies	88.1		100.3		174.1		209.7
	272.1		277.0		529.7		559.7
Intersegment sales	(0.2)		(0.1)		(0.3)		(0.2)
Total sales	$	271.9	$	276.9	$	529.4	$	559.5

Adjusted Segment EBITDA
Sealing Technologies	$	65.4	$	56.3	$	118.4	$	106.0
Advanced Surface Technologies	19.1		24.1		36.4		53.5
	$	84.5	$	80.4	$	154.8	$	159.5

Reconciliation of Income (Loss) from Continuing Operations Before Income Taxes to Adjusted Segment EBITDA
Income (loss) from continuing operations before income taxes	$	36.4	$	(28.6)	$	50.7	$	5.5
Acquisition expenses	0.2		—		3.5		—
Non-controlling interest compensation allocation	—		(0.7)		—		(0.3)
Amortization of fair value adjustment to acquisition date inventory	—		—		1.7		—
Restructuring expense	0.6		0.3		1.1		0.7
Depreciation and amortization expense	25.2		23.8		49.8		47.3
Corporate expenses	10.5		15.6		22.7		26.6
Interest expense, net	9.5		8.6		17.7		16.5
Goodwill impairment	—		60.8		—		60.8
Other expense, net	2.1		0.6		7.6		2.4
Adjusted Segment EBITDA	$	84.5	$	80.4	$	154.8	$	159.5

Segment assets are as follows:


	June 30, 2024		December 31, 2023
	(in millions)
Sealing Technologies	$	928.3	$	687.1
Advanced Surface Technologies	1,353.8		1,385.9
Corporate	239.8		426.5

	$	2,521.9	$	2,499.5

Revenue by End Market

Due to the diversified nature of our business and the differentiated portfolio of products and solutions that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third-party sales by major end market with which we did business for the quarters and six months ended June 30, 2024 and June 30, 2023:


	Quarter Ended June 30, 2024
(in millions)	Sealing Technologies		Advanced Surface Technologies		Total
Aerospace	$	13.9	$	3.2	$	17.1

Chemical and material processing	22.0		—		22.0
Food and pharmaceutical	18.0		—		18.0
General industrial	44.7		6.4		51.1
Commercial vehicle	48.0		—		48.0
Oil and gas	14.8		1.5		16.3
Power generation	19.9		—		19.9
Semiconductors	2.7		76.8		79.5

Total third-party sales	$	184.0	$	87.9	$	271.9


	Quarter Ended June 30, 2023
(in millions)	Sealing Technologies		Advanced Surface Technologies		Total
Aerospace	$	13.7	$	2.4	$	16.1

Chemical and material processing	22.9		—		22.9
Food and pharmaceutical	16.2		—		16.2
General industrial	44.3		6.0		50.3
Commercial vehicle	53.3		—		53.3
Oil and gas	4.7		2.9		7.6
Power generation	19.5		—		19.5
Semiconductors	2.1		88.9		91.0
Total third-party sales	$	176.7	$	100.2	$	276.9


	Six Months Ended June 30, 2024
(in millions)	Sealing Technologies		Advanced Surface Technologies		Total
Aerospace	$	28.1	$	6.0	$	34.1

Chemical and material processing	44.3		—		44.3
Food and pharmaceutical	35.0		—		35.0
General industrial	86.2		12.5		98.7
Commercial vehicle	92.9		—		92.9
Oil and gas	27.1		3.0		30.1
Power generation	37.4		—		37.4
Semiconductors	4.6		152.3		156.9

Total third-party sales	$	355.6	$	173.8	$	529.4


	Six Months Ended June 30, 2023
(in millions)	Sealing Technologies		Advanced Surface Technologies		Total
Aerospace	$	26.2	$	4.0	$	30.2

Chemical and material processing	44.5		—		44.5
Food and pharmaceutical	34.9		—		34.9
General industrial	88.2		14.8		103.0
Commercial vehicle	105.7		—		105.7
Oil and gas	10.6		4.5		15.1
Power generation	35.6		—		35.6
Semiconductors	4.3		186.2		190.5
Total third-party sales	$	350.0	$	209.5	$	559.5

12. Derivatives and Hedging

We are exposed to foreign currency risks that arise from normal business operations. These risks include the translation of local currency balances on our foreign subsidiaries’ balance sheets, intercompany loans with foreign subsidiaries and transactions denominated in foreign currencies. We strive to control our exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. We periodically enter into contracts to hedge forecasted transactions that are denominated in foreign currencies. As part of our regular practice, we have entered into a forward contract to hedge a 95 million Euro exposure on an intercompany note agreement related to proceeds from the sale of our former GGB business, allocated to foreign subsidiaries. We expect this intercompany note to be settled by December 2024. The notional amount of foreign exchange contracts was $107.3 million and $110.5 million at June 30, 2024 and December 31, 2023 respectively. All foreign exchange contracts outstanding at June 30, 2024 expired in July 2024.

The earnings impact of these foreign exchange contracts are recorded in selling, general and administrative expense in the Consolidated Statements of Operations. The balances of foreign exchange derivative assets are recorded in other current assets and the balances of foreign exchange derivative liabilities are recorded in accrued expenses in the Consolidated Balance Sheets.

In May 2019, we entered into cross-currency swap agreements (the "Swap") with an aggregate notional amount of $100.0 million to manage an increased portion of our foreign currency risk by effectively converting a portion of the interest payments related to our fixed-rate USD-denominated Senior Notes, including the semi-annual interest payments thereunder, to interest payments on fixed-rate Euro-denominated debt of 89.6 million EUR with a weighted average interest rate of 3.5%, with interest payment dates of April 15 and October 15 of each year. The Swap matures on October 15, 2026.

During the term of the Swap, we will receive semi-annual payments from the counterparties due to the difference between the interest rate on the Senior Notes and the interest rate on the Euro debt underlying the Swap. There was no principal exchange at the inception of the arrangement, and there will be no exchange at maturity. At maturity (or earlier at our option), we and the counterparty will settle the Swap at its fair value in cash based on the aggregate notional amount and the then-applicable currency exchange rate compared to the exchange rate at the time the Swap was entered into.

We have designated the Swap as a qualifying hedging instrument and are accounting for it as a net investment hedge. At June 30, 2024, the fair value of the Swap equaled $5.6 million and was recorded within our other (non-current) assets on the Consolidated Balance Sheet. The gains and losses resulting from fair value adjustment to the Swap, excluding interest accruals related to the above receipts, are recorded in accumulated other comprehensive income within our cumulative foreign currency translation adjustment, as the Swap is effective in hedging the designated risk. Cash flows related to the Swap are included in operating activities in the Consolidated Statements of Cash Flows, aside from the ultimate settlement at maturity with the counterparty, which will be included in investing activities.

13. Fair Value Measurements

Assets and liabilities measured at fair value on a recurring basis are summarized as follows:


	Fair Value Measurements as of
	June 30, 2024		December 31, 2023
	(in millions)
Assets


Foreign currency derivatives	$	5.6	$	3.1
Deferred compensation assets	14.3		12.5
	$	19.9	$	15.6
Liabilities
Deferred compensation liabilities	$	14.9	$	13.3

Our deferred compensation assets and liabilities are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our foreign currency derivatives are classified as Level 2 since their value is calculated based upon observable inputs including market USD/Euro exchange rates and market interest rates.

The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets, including our Senior Notes that have a determinable fair-value based on quoted market prices for identical liabilities and are classified as a Level 2 since the market is not active, approximated their respective fair values.

14. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) by component (after tax) for the quarter ended June 30, 2024 are as follows:


(in millions)	Unrealized Translation Adjustments		Pension Plans		Total
Beginning balance	$	20.3	$	(46.0)	$	(25.7)


Other comprehensive income before reclassifications	(8.3)		—		(8.3)
Amounts reclassified from accumulated other comprehensive loss	—		0.2		0.2


Net current-period other comprehensive income attributable to Enpro Inc.	(8.3)		0.2		(8.1)
Ending balance	$	12.0	$	(45.8)	$	(33.8)

Changes in accumulated other comprehensive income (loss) by component (after tax) for the quarter ended June 30, 2023 are as follows:


(in millions)	Unrealized Translation Adjustments		Pension Plans		Total
Beginning balance	$	18.6	$	(44.8)	$	(26.2)


Other comprehensive loss before reclassifications	4.8		—		4.8
Amounts reclassified from accumulated other comprehensive income	—		0.3		0.3


Net current-period other comprehensive income attributable to Enpro Inc.	4.8		0.3		5.1
Ending balance	$	23.4	$	(44.5)	$	(21.1)

Changes in accumulated other comprehensive income (loss) by component (after tax) for the six months ended June 30, 2024 are as follows:


(in millions)	Unrealized Translation Adjustments		Pension Plans		Total
Beginning balance	$	24.1	$	(46.3)	$	(22.2)


Other comprehensive loss before reclassifications	(12.1)		—		(12.1)
Amounts reclassified from accumulated other comprehensive loss	—		0.5		0.5


Net current-period other comprehensive income	(12.1)		0.5		(11.6)
Ending balance	$	12.0	$	(45.8)	$	(33.8)

Changes in accumulated other comprehensive income (loss) by component (after tax) for the six months ended June 30, 2023 are as follows:


(in millions)	Unrealized Translation Adjustments		Pension Plans		Total
Beginning balance	$	11.8	$	(45.1)	$	(33.3)


Other comprehensive income before reclassifications	11.6		—		11.6
Amounts reclassified from accumulated other comprehensive (loss)	—		0.6		0.6


Net current-period other comprehensive income	11.6		0.6		12.2
Ending balance	$	23.4	$	(44.5)	$	(21.1)

Reclassifications out of accumulated other comprehensive income (loss) for the quarters and six months ended June 30, 2024 and June 30, 2023 are as follows:


Details about Accumulated Other Comprehensive Income (Loss) Components	Amount Reclassified from Accumulated Other Comprehensive Income (Loss)								Affected Statement of Operations Caption
	Quarters Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Pension adjustments:
Actuarial losses	$	0.4	$	0.4	$	0.8	$	0.8	Other expense