ZURN ELKAY WATER SOLUTIONS CORPORATION General
Rexnord is a growth-oriented, multi-platform industrial company with what we
believe are leading market shares and highly-trusted brands that serve a diverse
array of global end markets. Our heritage of innovation and specification have
allowed us to provide highly-engineered, mission-critical solutions to customers
for decades and affords us the privilege of having long-term, valued
relationships with market leaders. We operate our Company in a disciplined way
and the Rexnord Business System ("RBS") is our operating philosophy. Grounded in
the spirit of continuous improvement, RBS creates a scalable, process-based
framework that focuses on driving superior customer satisfaction and financial
results by targeting world-class operating performance throughout all aspects of
our business.
The following information should be read in conjunction with the audited
consolidated financial statements and notes thereto, along with Item 7,
Management's Discussion and Analysis of Financial Condition and Results of
Operations ("MD&A"), in our Transition Report on Form 10-K for the nine month
transition period ended
Following the end of our fiscal 2020, we transitioned from aMarch 31 fiscal year-end date to aDecember 31 fiscal year-end date. Throughout this MD&A, we refer to the period fromJanuary 1, 2020 throughMarch 31, 2020 , as the "three months endedMarch 31, 2020 " or the "quarter endedMarch 31, 2020 ." We refer to the period fromJanuary 1, 2021 throughMarch 31, 2021 , as the "three months endedMarch 31, 2021 " or the "quarter endedMarch 31, 2021 ." Expected Spin-Off of Process & Motion Control Segment OnFebruary 15, 2021 , Rexnord and Regal entered into definitive agreements whereby Rexnord will separate its Process & Motion Control segment by way of a tax-free spin-off to Rexnord's stockholders and then immediately combine it with Regal in a RMT transaction. Closing of this transaction is subject to various closing conditions, including the receipt of regulatory approvals, receipt of the approval of Regal and Rexnord stockholders (which each of Regal and Rexnord will solicit at special meetings of their respective stockholders at a later date), and other customary closing conditions. This transaction is expected to close in the fourth quarter of 2021. Critical Accounting Policies and Estimates The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted inthe United States ("U.S. GAAP"), which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and revenues and expenses during the periods reported. Actual results could differ from those estimates. Refer to Item 7, MD&A of our Transition Report on Form 10-K for the Transition Period for information with respect to our critical accounting policies, which we believe could have the most significant effect on our reported results and require subjective or complex judgments by management. Except for the items reported below, management believes that as ofMarch 31, 2021 , and during the period fromJanuary 1, 2021 throughMarch 31, 2021 , there has been no material change to this information. Recent Accounting Pronouncements See Item 1, Note 1, Basis of Presentation and Significant Accounting Policies regarding recent accounting pronouncements. COVID-19 Pandemic The ongoing coronavirus ("COVID-19") pandemic and the actions taken by various governments and third parties to combat the spread of COVID-19 (including, in some cases, mandatory quarantines and other suspensions of non-essential business operations) have led to disruptions in our manufacturing and distribution operations and supply chains, including temporary reductions or suspensions of operations at some of our manufacturing and distribution locations around the world. In addition, our suppliers, business partners and customers have also experienced similar negative impacts from the COVID-19 pandemic. However, as ofMarch 31, 2021 , essentially all of our global facilities were operating with only intermittent interruptions and we are not currently experiencing any significant issues with respect to our distribution operations and supply chains. We remain focused on the health and well-being of our associates and have undertaken numerous actions within our offices and manufacturing sites that are intended to minimize the spread of COVID-19, including implementing work from home policies, establishing social distancing protocols for associates while at work and providing associates with access to numerous collaboration and productivity tools to facilitate communication in lieu of travel and face-to-face meetings. 32 -------------------------------------------------------------------------------- Table of Contents In order to reduce our cash outflows during this period of uncertainty and economic volatility, we implemented workforce reductions in 2020 and reductions of non-essential spending. Our objective with respect to these actions is to attempt to control the downside risk to our financial results, while ensuring that we maintain the capacity and flexibility to fully participate in the expected eventual recovery. While the duration of the COVID-19 pandemic is currently unknown and it is not possible at this time to estimate the scope and severity of the impact that the pandemic could have on our operations, the measures taken, and those that may be taken in the future, by the governments of countries affected, actions taken to protect employees, actions taken to shutdown or temporarily discontinue operations in certain locations, changes in customer buying patterns and the impact of the pandemic on various business activities in affected countries and the economy generally, it could continue to adversely affect our financial condition, results of operations and cash flows. Acquisitions and Divestiture OnDecember 11, 2020 , we acquired substantially all of the assets ofHadrian Manufacturing Inc. and 100% of the stock ofHadrian, Inc. (collectively, "Hadrian") for a total cash purchase price of$101.3 million . Hadrian, based inBurlington, Ontario, Canada , manufactures washroom partitions and lockers primarily used in institutional and commercial end markets and complements our existing Water Management platform. OnNovember 24, 2020 , we acquired the remaining non-controlling interest in a joint venture for a cash purchase price of$0.3 million . The acquisition of the remaining minority interest was not material to the Company's consolidated statements of operations or financial position. OnOctober 1, 2020 , we completed the sale of our gearbox product line inChina within our Process & Motion Control platform for aggregate cash consideration of$5.8 million . The gearbox product line was not material to the Company's consolidated statements of operations or financial position and did not meet the criteria to be presented as discontinued operations. OnJanuary 28, 2020 , we acquired substantially all of the assets ofJust Manufacturing Company ("Just Manufacturing") for a cash purchase price of$59.4 million , excluding transaction costs and net of cash acquired. Just Manufacturing, based inFranklin Park, Illinois , manufactures stainless steel sinks and plumbing fixtures primarily used in institutional and commercial end markets and complements our existing Water Management platform. OnMay 10, 2019 , we acquired substantially all of the assets of StainlessDrains.com, a manufacturer of stainless steel drains, grates and accessories for industrial and commercial end markets, for a cash purchase price of$24.8 million . StainlessDrains.com, headquartered inGreenville, Texas , added complementary product lines to our existing Water Management platform.
Restructuring
During the three months endedMarch 31, 2021 , we continued to execute various restructuring initiatives focused on driving efficiencies, reducing operating costs by modifying our footprint to reflect changes in the markets we serve and the impact of acquisitions on our overall manufacturing capacity and the refinement of our overall product portfolio. These restructuring actions primarily resulted in workforce reductions, impairment of related manufacturing facilities, equipment and intangible assets, lease termination costs, and other facility rationalization costs. We expect to continue executing similar initiatives to optimize our operating margin and manufacturing footprint. As we continue to evaluate the impact of the ongoing COVID-19 pandemic and the resulting effects on the global economy, we may also execute additional restructuring actions. As such, we expect further expenses related to workforce reductions, lease termination costs, and other facility rationalization costs on our overall manufacturing capacity, and refining our overall product portfolio. For the three months endedMarch 31, 2021 , restructuring charges totaled$0.6 million . For the three months endedMarch 31, 2020 , restructuring charges totaled$6.6 million . Refer to Item 1, Note 3, Restructuring and Other Similar Charges for further information. 33 -------------------------------------------------------------------------------- Table of Contents Results of Operations Three Months EndedMarch 31, 2021 compared with the Three Months EndedMarch 31, 2020 : Net sales (Dollars in Millions) Three Months Ended March 31, 2021 March 31, 2020 Change % Change Process & Motion Control$ 320.9 $ 363.6 $ (42.7) (11.7) % Water Management 205.2 183.4 21.8 11.9 % Consolidated$ 526.1 $ 547.0 $ (20.9) (3.8) % Process & Motion Control Process & Motion Control net sales were$320.9 million during the three months endedMarch 31, 2021 , a decrease of 12% as compared to the prior year. Excluding a 2% increase to net sales associated with foreign currency translation and a 1% decrease from a small divestiture, core sales decreased by 13% year over year as a result of the lower level of order backlog entering the quarter and changes in customer buying patterns given the COVID-19 pandemic. Net sales decreased by 5% year over year in our non-aerospace markets and by 46% in our aerospace markets. Water Management Water Management net sales were$205.2 million during the three months endedMarch 31, 2021 , an increase of 12% year over year. Excluding an 8% year over year increase in net sales resulting from our prior-year acquisitions of Just Manufacturing and Hadrian, core sales increased 4% driven by increased demand across several product lines including our hygienic and environmental solutions. Income from operations (Dollars in Millions) Three Months Ended March 31, 2021 March 31, 2020 Change % Change Process & Motion Control$ 55.0 $ 61.4 $ (6.4) (10.4) % % of net sales 17.1 % 16.9 % 0.2 % Water Management 40.6 41.8 (1.2) (2.9) % % of net sales 19.8 % 22.8 % (3.0) % Corporate (17.0) (15.2) (1.8) (11.8) % Consolidated$ 78.6 $ 88.0 $ (9.4) (10.7) % % of net sales 14.9 % 16.1 % (1.2) % Process & Motion Control Process & Motion Control income from operations during the three months endedMarch 31, 2021 was$55.0 million , or 17.1% of net sales. Income from operations as a percentage of net sales increased by 20 basis points year over year due to benefits from cost reduction and productivity initiatives and lower year-over-year restructuring expense, which combined to more than offset the impact of lower sales as compared to the prior year. Water Management Water Management income from operations was$40.6 million during the three months endedMarch 31, 2021 , or 19.8% of net sales. Income from operations as a percentage of net sales decreased by 300 basis points year over year as the favorable impact of higher sales growth year over year was more than offset by increases in restructuring, non-cash stock compensation and amortization expenses, the mix impact of the Hadrian acquisition and the year-over-year change in the adjustment to state inventories at last-in-first-out cost. Corporate Corporate expenses were$17.0 million and$15.2 million during the three months endedMarch 31, 2021 and 2020, respectively. The increase in corporate expenses during the three months endedMarch 31, 2021 , is primarily the result of higher year over year non-cash stock compensation expense. 34 -------------------------------------------------------------------------------- Table of Contents Interest expense, net Interest expense, net was$11.0 million during the three months endedMarch 31, 2021 , compared to$13.4 million during the three months endedMarch 31, 2020 . The decrease in interest expense as compared to the prior year's period is primarily a result of the impact of lower outstanding borrowings and lower average interest rates. See Item 1, Note 12 Long-Term Debt for more information. Actuarial loss on pension and postretirement benefit obligations There was no actuarial loss on pension and postretirement benefit obligations recognized in the three months endedMarch 31, 2021 . Actuarial loss on pension and postretirement benefit obligations in the three months endedMarch 31, 2020 , was$35.8 million . The non-cash actuarial loss recognized during the three months endedMarch 31, 2020 , was primarily the result of decreases in discount rates coupled with lower-than-expected asset returns, partially offset by decreases in life expectancy assumptions utilized within the remeasurement of our defined benefit plans in connection with our previousMarch 31st fiscal year end.
Other expense, net
Other expense, net during the three months endedMarch 31, 2021 and 2020, was$0.4 million and$3.6 million , respectively. Other expense, net consists primarily of foreign currency transaction gains and losses and the non-service cost components associated with our defined benefit plans. The year-over-year change is primarily driven by changes in foreign currency rates. Provision for income taxes The income tax provision was$17.2 million during the three months endedMarch 31, 2021 , compared to$6.4 million in the three months endedMarch 31, 2020 . The effective income tax rate for the three months endedMarch 31, 2021 was 25.6% versus 18.2% in the three months endedMarch 31, 2020 . The effective income tax rate for the three months endedMarch 31, 2021 was above theU.S. federal statutory rate of 21% primarily due to the accrual of foreign income taxes, which are generally above theU.S. federal statutory rate, the accrual of unrecognized income tax benefits in which such realization is not deemed more-likely-than-not, the accrual of additional income taxes associated with compensation deduction limitations under Section 162(m) of the Internal Revenue Code and the accrual of various state income taxes, partially offset by the recognition of a discrete foreign financing-related income tax benefit, as well as the recognition of income tax benefits associated with foreign-derived intangible income ("FDII"). The effective income tax rate for the three months endedMarch 31, 2020 was below theU.S. federal statutory rate of 21% primarily due to the recognition of certain previously unrecognized tax benefits due to the lapse of the applicable statutes of limitations and the recognition of income tax benefits associated with FDII, partially offset by the accrual of foreign income taxes, which are generally above theU.S. federal statutory rate, the accrual of additional income taxes associated with global intangible low-taxed income ("GILTI") and the accrual of various state income taxes. On a quarterly basis, we review and analyze our valuation allowances associated with deferred tax assets relating to certain foreign and state net operating loss carryforwards as well asU.S. federal and state capital loss carryforwards. In conjunction with this analysis, we weigh both positive and negative evidence for purposes of determining the proper balances of such valuation allowances. Future changes to the balances of these valuation allowances, as a result of our continued review and analysis, could result in a material impact to the financial statements for such period of change.
Net income
Net income during the three months endedMarch 31, 2021 and 2020, was$50.1 million and$28.6 million , respectively, as a result of the factors described above. Diluted net income per share was$0.40 during the three months endedMarch 31, 2021 , as compared to diluted net income per share of$0.23 during the three months endedMarch 31, 2020 . Net income attributable toRexnord Net income attributable to Rexnord during the three months endedMarch 31, 2021 , was$50.0 million compared to$28.5 million during the three months endedMarch 31, 2020 . Diluted net income per share attributable to Rexnord for the three months endedMarch 31, 2021 andMarch 31, 2020 , was$0.40 and$0.23 , respectively, as a result of the factors described above. 35 -------------------------------------------------------------------------------- Table of Contents Non-GAAP Financial Measures
Non-GAAP financial measures are intended to supplement and not replace financial measures prepared in accordance with GAAP. Core sales
Core sales excludes the impact of acquisitions (such as the Hadrian and Just Manufacturing acquisitions), divestitures and foreign currency translation. Management believes that core sales facilitates easier and more meaningful comparisons of our net sales performance with prior and future periods and to our peers. We exclude the effect of acquisitions and divestitures because the nature, size and number of acquisitions and divestitures can vary dramatically from period to period and between us and our peers, and can also obscure underlying business trends and make comparisons of long-term performance difficult. We exclude the effect of foreign currency translation from this measure because the volatility of currency translation is not under management's control. EBITDA EBITDA represents earnings from continuing operations before interest and other debt related activities, taxes, depreciation and amortization. EBITDA is presented because it is an important supplemental measure of performance and it is frequently used by analysts, investors and other interested parties in the evaluation of companies in our industry. EBITDA is also presented and compared by analysts and investors in evaluating our ability to meet debt service obligations. Other companies in our industry may calculate EBITDA differently. EBITDA is not a measurement of financial performance underU.S. GAAP and should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of operating performance or any other measures of performance derived in accordance withU.S. GAAP. Because EBITDA is calculated before recurring cash charges, including interest expense and taxes, and is not adjusted for capital expenditures or other recurring cash requirements of the business, it should not be considered as a measure of discretionary cash available to invest in the growth of the business. Adjusted EBITDA Adjusted EBITDA (as described below in "Covenant Compliance") is an important measure because, under our credit agreement, our ability to incur certain types of acquisition debt and certain types of subordinated debt, make certain types of acquisitions or asset exchanges, operate our business and make dividends or other distributions, all of which will impact our financial performance, is impacted by our Adjusted EBITDA, as our lenders measure our performance with a net first lien leverage ratio by comparing our senior secured bank indebtedness to our Adjusted EBITDA (see "Covenant Compliance" for additional discussion of this ratio, including a reconciliation to our net income). We reported net income attributable to Rexnord in the three months endedMarch 31, 2021 , of$50.0 million and Adjusted EBITDA for the same period of$120.2 million . See "Covenant Compliance" for a reconciliation of Adjusted EBITDA to net income attributable to Rexnord. Covenant Compliance Our credit agreement, which governs our senior secured credit facilities, contains, among other provisions, restrictive covenants regarding indebtedness, payments and distributions, mergers and acquisitions, asset sales, affiliate transactions, capital expenditures and the maintenance of certain financial ratios. Payment of borrowings under the credit agreement may be accelerated if there is an event of default. Events of default include the failure to pay principal and interest when due, a material breach of a representation or warranty, certain non-payments or defaults under other indebtedness, covenant defaults, events of bankruptcy and a change of control. Certain covenants contained in the credit agreement restrict our ability to take certain actions, such as incurring additional debt or making acquisitions, if we are unable to meet a maximum total net leverage ratio of 6.75 to 1.0 as of the end of each fiscal quarter. AtMarch 31, 2021 , our net leverage ratio was 2.2 to 1.0. Failure to comply with these covenants could limit our long-term growth prospects by hindering our ability to borrow under the revolver, to obtain future debt and/or to make acquisitions. 36
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"Adjusted EBITDA" is the term we use to describe EBITDA as defined and adjusted in our credit agreement, which is net income, adjusted for the items summarized in the table below. Adjusted EBITDA is intended to show our unleveraged, pre-tax operating results and therefore reflects our financial performance based on operational factors, excluding non-operational, non-cash or non-recurring losses or gains. In view of our debt level, it is also provided to aid investors in understanding our compliance with our debt covenants. Adjusted EBITDA is not a presentation made in accordance with GAAP, and our use of the term Adjusted EBITDA varies from others in our industry. This measure should not be considered as an alternative to net income, income from operations or any other performance measures derived in accordance with GAAP. Adjusted EBITDA has important limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. For example, Adjusted EBITDA does not reflect: (a) our capital expenditures, future requirements for capital expenditures or contractual commitments; (b) changes in, or cash requirements for, our working capital needs; (c) the significant interest expenses, or the cash requirements necessary to service interest or principal payments, on our debt; (d) tax payments that represent a reduction in cash available to us; (e) any cash requirements for the assets being depreciated and amortized that may have to be replaced in the future; or (f) the impact of earnings or charges resulting from matters that we and the lenders under our credit agreement may not consider indicative of our ongoing operations. In particular, our definition of Adjusted EBITDA allows us to add back certain non-cash, non-operating or non-recurring charges that are deducted in calculating net income, even though these are expenses that may recur, vary greatly and are difficult to predict and can represent the effect of long-term strategies as opposed to short-term results. In addition, certain of these expenses can represent the reduction of cash that could be used for other corporate purposes. Further, although not included in the calculation of Adjusted EBITDA below, the measure may at times allow us to add estimated cost savings and operating synergies related to operational changes ranging from acquisitions or dispositions to restructuring, and/or exclude one-time transition expenditures that we anticipate we will need to incur to realize cost savings before such savings have occurred. The calculation of Adjusted EBITDA under our credit agreement as ofMarch 31, 2021 , is presented in the table below. However, the results of such calculation could differ in the future based on the different types of adjustments that may be included in such respective calculations at the time. 37
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Set forth below is a reconciliation of net income attributable to Rexnord common stockholders to Adjusted EBITDA for the periods indicated below.
Twelve months
Nine months
ended Three months ended ended
December 31, 2020 March 31, 2021 2021
Net income attributable to Rexnord $ 118.2 $ 50.0 $ 168.2
Non-controlling interest income 0.4 0.1 0.5 Equity method investment income (0.2) (0.1) (0.3) Income tax provision 36.3 17.2 53.5
Actuarial loss on pension and postretirement benefit obligations
1.6 - 1.6
Other (income) expense, net (1) (4.5) 0.4 (4.1)
Interest expense, net 36.6 11.0 47.6
Depreciation and amortization 67.0 23.5 90.5
EBITDA 255.4 102.1 357.5
Adjustments to EBITDA:
Restructuring and other similar charges (2) 14.6 0.6 15.2
Stock-based compensation expense 36.6 14.8 51.4
Last-in first-out inventory adjustments (3) - 1.9 1.9
Acquisition-related fair value adjustment 1.2 0.6 1.8
Other, net (4) (0.3) 0.2 (0.1)
Subtotal of adjustments to EBITDA 52.1 18.1 70.2
Adjusted EBITDA $ 307.5 $ 120.2 $ 427.7 Pro forma adjustment for acquisitions (5)
5.1
Pro forma Adjusted EBITDA 432.8
Consolidated indebtedness (6) $ 957.6
Total net leverage ratio (7) 2.2
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(1)Other (income) expense, net for the periods indicated, consists primarily of gains and losses from foreign currency transactions and the non-service cost components of net periodic benefit costs associated with our defined benefit plans. (2)Restructuring and other similar charges is comprised of costs associated with workforce reductions, lease termination costs and other facility rationalization costs. See Item 1, Note 3, Restructuring and Other Similar Charges for more information. (3)Last-in first-out (LIFO) inventory adjustments are excluded in calculating Adjusted EBITDA as defined in our credit agreement. (4)Other, net for the periods indicated, consists primarily of gains and losses on the disposition of long-lived assets. (5)Represents a pro forma adjustment to include Adjusted EBITDA related to the acquisition of Hadrian, which was permitted by our credit agreement. The pro forma adjustment includes the period fromApril 1, 2020 , through the date of the Hadrian acquisition. See Item 1, Note 2, Acquisitions and Divestiture for more information. (6)Our credit agreement defines our consolidated indebtedness as the sum of all indebtedness (other than letters of credit or bank guarantees, to the extent undrawn) consisting of indebtedness for borrowed money and capitalized lease obligations, less unrestricted cash, which was$234.2 million (as defined by the credit agreement) atMarch 31, 2021 . (7)Our credit agreement defines the total net leverage ratio as the ratio of consolidated indebtedness (as described above) to Adjusted EBITDA for the trailing four fiscal quarters. 38 -------------------------------------------------------------------------------- Table of Contents Liquidity and Capital Resources Our primary sources of liquidity are available cash and cash equivalents, cash flow from operations, and borrowing availability of up to$264.0 million under our revolving credit facility. As ofMarch 31, 2021 , we also had availability of up to$100.0 million under our accounts receivable securitization program; however, onApril 16, 2021 , we provided notice of our election to terminate this program as ofMay 17, 2021 . As ofMarch 31, 2021 , we had$307.3 million of cash and cash equivalents and$355.8 million of additional borrowing capacity ($263.3 million of available borrowings under our revolving credit facility and$92.5 million available under our accounts receivable securitization program). As ofMarch 31, 2021 , the available borrowings under our credit facility and accounts receivable securitization were reduced by$8.2 million due to outstanding letters of credit. As ofDecember 31, 2020 , we had$255.6 million of cash and cash equivalents and approximately$339.2 million of additional borrowing capacity ($261.0 million of available borrowings under our revolving credit facility and$78.2 million available under our accounts receivable securitization program). Our revolving credit facility is available to fund our working capital requirements, capital expenditures and for other general corporate purposes. In the three months endedMarch 31, 2021 , the Company andLand Newco, Inc. , a wholly-owned indirect subsidiary of the Company ("Land"), each entered into a debt commitment letter with various lenders in connection with the proposed transaction with Regal disclosed in Item 1, Note 1, Basis of Presentation and Significant Accounting Policies. The lenders committed to provide us with up to$708.0 million in an aggregate principal amount of senior term loans under a senior secured term loan facility and up to$200.0 million in an aggregate principal amount of senior revolving loans under a senior secured revolving credit facility. The lenders committed to provide bridge loans of up to approximately$486.8 million under a 364-day senior bridge loan facility to Land to be used to pay the dividend required in connection with the transaction. If the proposed transaction with Regal is consummated, the indebtedness contemplated by the commitment letter with Land will become indebtedness of a wholly-owned subsidiary of Regal. Cash Flows Cash provided by operating activities was$71.3 million and$123.9 million during the three months endedMarch 31, 2021 and 2020, respectively. Higher trade working capital and the impact of timing of payments on accrued expenses were partially offset by higher net income generated during the three months endedMarch 31, 2021 . Cash used for investing activities was$8.1 million during the three months endedMarch 31, 2021 compared to$74.1 million during the three months endedMarch 31, 2020 . Investing activities during the three months endedMarch 31, 2021 , primarily included$9.2 million of capital expenditures, partially offset by the receipt of$0.7 million in connection with the sale of certain long-lived assets. Investing activities during the three months endedMarch 31, 2020 , included$15.9 million of capital expenditures and$59.4 million for the acquisition of Just Manufacturing, partially offset by the receipt of$1.2 million in connection with the sale of certain long-lived assets. Cash used for financing activities was$9.4 million during the three months endedMarch 31, 2021 , compared to cash provided by financing activities of$253.4 million during the three months endedMarch 31, 2020 . During the three months endedMarch 31, 2021 , we utilized$0.5 million of cash for payments on outstanding debt,$10.8 million for the payment of common stock dividends and$0.9 million to repurchase shares of common stock. The three months endedMarch 31, 2021 , also includes$2.8 million of cash proceeds associated with stock option exercises. During the three months endedMarch 31, 2020 , we borrowed a net$324.7 million under our credit facilities and we utilized$9.8 million for the payment of common stock dividends and$80.7 million to repurchase common stock. The three months endedMarch 31, 2020 , also includes$19.2 million of cash proceeds associated with stock option exercises. Indebtedness
As of
Total Debt at March Current Maturities of Long-term
31, 2021 Debt Portion
Term loan (1) $ 621.7 $ - $ 621.7
4.875% Senior Notes due 2025 (2) 496.5 - 496.5
Finance leases and other subsidiary
debt 73.6 2.5 71.1
Total $ 1,191.8 $ 2.5 $ 1,189.3 ___________________________________________
(1)Includes unamortized debt issuance costs of
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