Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Feb. 27, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PARK OHIO INDUSTRIES INC/OH | |
Entity Central Index Key | 1068148 | |
Document Type | 10-K | |
Document Period End Date | 31-Dec-14 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2014 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 100 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | Yes | |
Entity Current Reporting Status | No | |
Entity Public Float | $0 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $48.30 | $43.70 |
Accounts receivable, less allowances for doubtful accounts of $4.1 million at December 31, 2014 and $3.7 million at December 31, 2013 | 208 | 165.6 |
Inventories, net | 238.4 | 221.4 |
Deferred tax assets | 28.1 | 24.6 |
Unbilled contract revenue | 26.8 | 8.7 |
Prepaid and other current assets | 22.5 | 21.9 |
Total current assets | 572.1 | 485.9 |
Net property, plant and equipment | 141 | 114.5 |
Goodwill | 89.5 | 60.4 |
Intangible assets, net | 88.1 | 66.2 |
Other long-term assets | 73.2 | 80.4 |
Total assets | 963.9 | 807.4 |
Current liabilities: | ||
Trade accounts payable | 162.1 | 112.9 |
Payables to affiliates | 1.8 | 1.6 |
Accrued expenses and other | 103.7 | 85.6 |
Total current liabilities | 267.6 | 200.1 |
Long-term liabilities, less current portion: | ||
Debt | 434.4 | 379.2 |
Deferred tax liabilities | 43.9 | 45.3 |
Other postretirement benefits and other long-term liabilities | 40.1 | 32.2 |
Total long-term liabilities | 518.4 | 456.7 |
Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity: | ||
Common stock, par value $1 per share | 0 | 0 |
Additional paid-in capital | 88.6 | 81.5 |
Retained earnings | 97 | 60.7 |
Accumulated other comprehensive (loss) income | -14 | 3.4 |
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 171.6 | 145.6 |
Noncontrolling interest | 6.3 | 5 |
Total equity | 177.9 | 150.6 |
Total liabilities and shareholder's equity | $963.90 | $807.40 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $4.10 | $3.70 |
Common stock, par value (in dollars per share) | $1 | $1 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | ||||
Net sales | $1,378.70 | $1,203.20 | $1,128.20 | |
Cost of sales | 1,144.20 | 992.2 | 920.9 | |
Gross profit | 234.5 | 211 | 207.3 | |
Selling, general and administrative expenses | 135.6 | 119.5 | 112.4 | |
Litigation judgment and settlement costs | 0 | 5.2 | 13 | |
Operating income | 98.9 | 86.3 | 81.9 | |
Gain on acquisition of business | -0.6 | 0 | -0.6 | 0 |
Interest expense | 26.1 | 25.9 | 26 | |
Income from continuing operations before income taxes | 72.8 | 61 | 55.9 | |
Income tax expense | 25.2 | 19.6 | 20.8 | |
Net income from continuing operations | 47.6 | 41.4 | 35.1 | |
Income (loss) from discontinued operations, net of taxes | 0 | 3 | -2.4 | |
Net income | 47.6 | 44.4 | 32.7 | |
Net income attributable to noncontrolling interest | -1.3 | -0.5 | 0 | |
Net income attributable to ParkOhio common shareholder | $46.30 | $43.90 | $32.70 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $47.60 | $44.40 | $32.70 |
Net Income (Loss) Attributable to Parent | 46.3 | 43.9 | 32.7 |
Other comprehensive income (loss): | |||
Foreign currency translation (loss) gain | -7.9 | -2.5 | 0.6 |
Pension and postretirement benefit adjustments, net of tax | -9.5 | 12.8 | 1 |
Total other comprehensive (loss) income | -17.4 | 10.3 | 1.6 |
Total comprehensive income, net of tax | 30.2 | 54.7 | 34.3 |
Comprehensive income attributable to noncontrolling interest | -1.3 | -0.5 | 0 |
Comprehensive income attributable to ParkOhio common shareholder | $28.90 | $54.20 | $34.30 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholder's Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | ||||||
Beginning balance at Dec. 31, 2011 | $47.70 | $0 | $59.90 | ($3.70) | ($8.50) | $0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 34.3 | 32.7 | 1.6 | 0 | ||
Share-based compensation | 2.7 | 2.7 | ||||
Income tax effect of share-based compensation exercises and vesting | 0.4 | 0.4 | ||||
Income tax effect of suspended benefits from share-based compensation | 2.8 | 2.8 | ||||
Dividend paid to parent | -1.5 | -1.5 | ||||
Capital contribution from noncontrolling interest | 10 | 10 | ||||
Ending balance at Dec. 31, 2012 | 96.4 | 0 | 75.8 | 27.5 | -6.9 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 54.7 | 43.9 | 10.3 | 0.5 | ||
Share-based compensation | 4.7 | 4.7 | ||||
Income tax effect of share-based compensation exercises and vesting | 0.5 | 0.5 | ||||
Dividend paid to parent | -10.7 | -10.7 | ||||
Capital contribution from noncontrolling interest | 5 | 0.5 | 4.5 | |||
Ending balance at Dec. 31, 2013 | 150.6 | 0 | 81.5 | 60.7 | 3.4 | 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 30.2 | 46.3 | -17.4 | 1.3 | ||
Share-based compensation | 5.8 | 5.8 | ||||
Income tax effect of share-based compensation exercises and vesting | 1.3 | 1.3 | ||||
Dividend paid to parent | -10 | -10 | ||||
Ending balance at Dec. 31, 2014 | $177.90 | $0 | $88.60 | $97 | ($14) | $6.30 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income | $47.60 | $44.40 | $32.70 |
Net Income (Loss) Attributable to Parent | 46.3 | 43.9 | 32.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 22.4 | 18.5 | 17.5 |
Debt extinguishment costs | 0 | 0 | 0.3 |
Share-based compensation | 5.8 | 4.7 | 2.7 |
Gain on sale of business and assets | -1.9 | -6 | -0.3 |
Gain on acquisition of business | 0 | -0.6 | 0 |
Deferred income taxes | 0.6 | -2.1 | 8 |
Other | 1 | 0 | 0 |
Changes in operating assets and liabilities, excluding business acquisitions: | |||
Accounts receivable | -27.9 | 8.5 | 9.6 |
Inventories and other current assets | -23.4 | -4.7 | 9.3 |
Accounts payable and accrued expenses | 29.4 | -7 | -21.8 |
Other | 2.3 | 4 | -1.5 |
Net cash provided by operating activities | 55.9 | 59.7 | 56.5 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | -25.8 | -29.8 | -26.9 |
Proceeds from sale and leaseback transactions | 0 | 7.4 | 5.9 |
Proceeds from sale of assets | 2.1 | 14.2 | 0.4 |
Business acquisitions, net of cash acquired | -72.7 | -45.8 | -97 |
Net cash used by investing activities | -96.4 | -54 | -117.6 |
FINANCING ACTIVITIES | |||
Proceeds from term loans and other debt | 14.2 | 0 | 25.9 |
Payments on term loans and other debt | -6.6 | -4.2 | -3.7 |
Proceeds from revolving credit facility, net | 50.3 | 9.1 | 8.9 |
Dividend paid to parent | -10 | -10.7 | -1.5 |
Bank debt issue costs | 0 | 0 | -0.9 |
Income tax effect of suspended benefits from share-based compensation | 0 | 0 | 2.8 |
Income tax effect of share-based compensation exercises and vesting | 1.3 | 0.5 | 0.4 |
Capital contribution from parent | 0 | 0 | 10 |
Other | -1.3 | 0 | 0 |
Net cash provided (used) by financing activities | 47.9 | -5.3 | 41.9 |
Effect of exchange rate changes on cash | -2.8 | 0.9 | 0.3 |
Increase (decrease) in cash and cash equivalents | 4.6 | 1.3 | -18.9 |
Cash and cash equivalents at beginning of period | 43.7 | 42.4 | 61.3 |
Cash and cash equivalents at end of period | 48.3 | 43.7 | 42.4 |
Income taxes paid | 25.8 | 25 | 5.5 |
Interest paid | $24 | $24.80 | $23.80 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||
Consolidation and Basis of Presentation: The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. In the ordinary course of business, the Company leases certain real properties owned by related parties as described in Note 12. Transactions with related parties are in the ordinary course of business and are not material to the Company’s financial position, results of operations or cash flows. In December 2014, the Company purchased real estate owned by a company owned by the Chairman and Chief Executive Officer of the Company for cash of $1.8 million. The transaction is included in the capital expenditures of the cash flow statement. | ||||||||
Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||
Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | ||||||||
Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value. | ||||||||
Major Classes of Inventories | December 31, 2014 | December 31, 2013 | ||||||
(In millions) | ||||||||
Finished goods | $ | 146 | $ | 124.1 | ||||
Work in process | 19.8 | 36 | ||||||
Raw materials and supplies | 72.6 | 61.3 | ||||||
Inventories, net | $ | 238.4 | $ | 221.4 | ||||
Other inventory items | ||||||||
Inventory reserves | $ | 29.9 | $ | 28.4 | ||||
Consigned Inventory | $ | 7.8 | $ | 6.6 | ||||
Property, Plant and Equipment: Property, plant and equipment are carried at cost. Additions and associated interest costs are capitalized and expenditures for repairs and maintenance are charged to operations. Depreciation of fixed assets is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 50 years for buildings, and one to 20 years for machinery and equipment. | ||||||||
The following table summarizes property, plant and equipment at December 31, 2014 and December 31, 2013: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Property, plant and equipment: | ||||||||
Land and land improvements | $ | 7.1 | $ | 6.4 | ||||
Buildings | 70.9 | 60.7 | ||||||
Machinery and equipment | 288.7 | 256.7 | ||||||
Total property, plant and equipment | 366.7 | 323.8 | ||||||
Less accumulated depreciation | 225.7 | 209.3 | ||||||
Net property, plant and equipment | $ | 141 | $ | 114.5 | ||||
Impairment of Long-Lived Assets: We assess the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives, whenever events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future undiscounted cash flows to be generated by that asset, or, for identifiable intangibles with finite useful lives, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. We measure the amount of impairment of other long-lived assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair market value of the asset, which is generally determined, based on projected discounted future cash flows or appraised values. We classify long-lived assets to be disposed of other than by sale as held and used until they are disposed. | ||||||||
Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other” (“ASC 350”), the Company does not amortize goodwill or indefinite-lived intangible assets recorded in connection with business acquisitions. | ||||||||
Goodwill and indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. | ||||||||
Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets, compared to the fair value. In accordance with Accounting Standard Update (“ASU”) 2011-08, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step quantitative impairment test is unnecessary. | ||||||||
In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgments and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company-specific events and share price trends, and the assessment of whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. | ||||||||
If our qualitative assessment concludes that it is more likely than not that impairment exists then a quantitative assessment is required. In a quantitative assessment, we use an income approach and other valuation techniques to estimate the fair value of our reporting units. Absent an indication of fair value from a potential buyer or similar specific transactions, we believe that using this methodology provides reasonable estimates of a reporting unit’s fair value. The income approach is based on projected future debt-free cash flow that is discounted to present value using factors that consider the timing and risk of the future cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit’s expected long-term operating and cash flow performance. This approach also mitigates most of the impact of cyclical downturns that occur in the reporting unit’s industry. The income approach is based on a reporting unit’s projection of operating results and cash flows that is discounted using a weighted-average cost of capital. The projection is based upon our best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements based on management projections. There are inherent uncertainties, however, related to these factors and to our judgment in applying them to this analysis. Nonetheless, we believe that this method provides a reasonable approach to estimate the fair value of our reporting units. | ||||||||
The Company completed its annual goodwill impairment test for each year presented and confirmed no reporting unit was at risk of failing the impairment test for any periods presented herein. | ||||||||
Indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. In accordance with ASU 2011-08, an entity may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying value. The Company completed its annual indefinite-lived intangible impairment assessment. As a result of this analysis, we concluded that no impairment existed. | ||||||||
Fair Values of Financial Instruments: Certain financial instruments are required to be recorded at fair value. The Company measures financial assets and liabilities at fair value in three levels of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: | ||||||||
Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. | ||||||||
Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | ||||||||
Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | ||||||||
Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 9) approximate fair value at December 31, 2014 and December 31, 2013. The fair values of long-term debt and pension plan assets are disclosed in Note 9 and Note 13, respectively. | ||||||||
The Company has not changed its valuation techniques for measuring fair value during 2014 and there were no transfers between levels during the periods presented. | ||||||||
Income Taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and the tax bases of assets and liabilities and are measured using the current enacted tax rates. In determining these amounts, management determined the probability of realizing deferred tax assets, taking into consideration factors including historical operating results, cumulative earnings and losses, expectations of future earnings, taxable income and the extended period of time over which the postretirement benefits will be paid and accordingly records valuation allowances if, based on the weight of available evidence it is more likely than not that some portion or all of our deferred tax assets will not be realized as required by ASC 740, “Income Taxes” (“ASC 740”). | ||||||||
Stock-Based Compensation: The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period. | ||||||||
Holdings grants share-based compensation awards to Industries' employees. In accordance with ASC 718, such costs are allocated to Industries. Under the provisions of the Company’s 1998 Long-Term Incentive Plan, as amended (“1998 Plan”), which is administered by the Compensation Committee of Holdings' Board of Directors, incentive stock options, non-statutory stock options, stock appreciation rights (“SARs”), restricted share units, performance shares or stock awards may be awarded to directors and all employees of the Company and its subsidiaries. Stock options will be exercisable in whole or in installments as may be determined provided that no options will be exercisable more than ten years from date of grant. The exercise price will be the fair market value at the date of grant. The aggregate number of shares of Holdings' common stock that may be awarded under the 1998 Plan is 3,700,000, all of which may be incentive stock options. No more than 500,000 shares shall be the subject of awards to any individual participant in any one calendar year. | ||||||||
Revenue Recognition: The Company recognizes revenue, other than from long-term contracts, when title is transferred to the customer, typically upon shipment. Revenue from long-term contracts (approximately 8% of consolidated revenue) is accounted for under the percentage of completion method, and recognized on the basis of the percentage each contract’s cost to date bears to the total estimated contract cost. Revenue earned on contracts in process that are in excess of billings, is classified in unbilled contract revenues in the accompanying consolidated balance sheets. Billings that are in excess of revenues earned on contracts in process are classified in accrued expenses in the accompanying balance sheets. | ||||||||
Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. | ||||||||
Shipping and Handling Costs: All shipping and handling costs are included in cost of sales in the Consolidated Statements of Income. | ||||||||
Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable are recorded at net realizable value. Accounts receivable are reduced by an allowance for amounts that may become uncollectable in the future. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history. During 2014 and 2013, we sold approximately $95.0 million and $75.4 million, respectively, of accounts receivable to mitigate accounts receivable concentration risk and to provide additional financing capacity. In compliance with ASC 860, “Transfers and Servicing”, sales of accounts receivable are reflected as a reduction of accounts receivable in the Consolidated Balance Sheets and the proceeds are included in the cash flows from operating activities in the Consolidated Statements of Cash flows. In 2014 and 2013, an expense in the amount of $0.5 million and $0.4 million, respectively, related to the discount on sale of accounts receivable is recorded in the Consolidated Statements of Income. | ||||||||
Concentration of Credit Risk: The Company sells its products to customers in diversified industries. The Company performs ongoing credit evaluations of its customers’ financial condition but does not require collateral to support customer receivables. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. As of December 31, 2014, the Company had uncollateralized receivables with six customers in the automotive industry, each with several locations, aggregating $37.7 million, which represented approximately 18% of the Company’s trade accounts receivable. During 2014, sales to these customers amounted to approximately $252.6 million, which represented approximately 18% of the Company’s net sales. | ||||||||
Environmental: The Company accrues environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Costs that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company records a liability when environmental assessments and/or remedial efforts are probable and can be reasonably estimated. The estimated liability of the Company is not reduced for possible recoveries from insurance carriers. | ||||||||
Legal Contingencies: We are involved in a variety of claims, suits, investigations and administrative proceedings with respect to commercial, premises liability, product liability, employment and environmental matters arising from the ordinary course of business. We accrue reserves for legal contingencies, on an undiscounted basis, when it is probable that we have incurred a liability and we can reasonably estimate an amount. When a single amount cannot be reasonably estimated, but the cost can be estimated within a range, we accrue the minimum amount in the range. Based upon facts and information currently available, we believe the amounts reserved are adequate for such pending matters. We monitor the development of legal proceedings on a regular basis and will adjust our reserves when, and to the extent, additional information becomes available. | ||||||||
Foreign Currency Translation: The functional currency for a majority of subsidiaries outside the United States is the local currency. Financial statements for these subsidiaries are translated into U.S. dollars at year-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. The resulting translation adjustments are recorded in accumulated comprehensive income (loss) in shareholder's equity. | ||||||||
Recent Accounting Pronouncements Not Yet Adopted | ||||||||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which raises the threshold for disposals to qualify as discontinued operations and requires new disclosures for discontinued operations and for individually material disposal transactions that do not meet the definition of a discontinued operation. The ASU is effective prospectively for reporting periods beginning with the first quarter of 2015. Early adoption is permitted for disposals that have not been previously reported in the financial statements. We believe the adoption of this ASU will have an insignificant effect on our consolidated financial statement as it only applies to future disposals. | ||||||||
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. generally accepted accounting principles and International Financial Reporting Standards. The issuance of a comprehensive and converged standard on revenue recognition is expected to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions, and geographies. The ASU will require additional disclosures to help financial statement users better understand the nature, amount, timing, and potential uncertainty of the revenue that is recognized. The ASU is effective for annual reporting periods beginning after December 15, 2016, and will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is currently evaluating the impact of adopting this guidance. | ||||||||
Reclassification: Certain amounts in the prior years' financial statements have been reclassified to conform to the current year presentation. |
Segments
Segments | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segments | Segments | |||||||||||
The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides our customers with Total Supply Management™ services for a broad range of high-volume, specialty production components. Total Supply Management™ manages the efficiencies of every aspect of supplying production parts and materials to our customers’ manufacturing floor, from strategic planning to program implementation, and includes such services as engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing services and ongoing technical support. Assembly Components manufactures cast aluminum components, automotive and industrial rubber and thermoplastic products, gasoline direct injection systems, fuel filler and hydraulic assemblies for automotive, agricultural equipment, construction equipment, heavy-duty truck and marine equipment industries. Assembly Components also provides value-added services such as design and engineering, machining and assembly. Engineered Products operates a diverse group of niche manufacturing businesses that design and manufacture a broad range of high quality products engineered for specific customer applications. | ||||||||||||
The Company primarily evaluates performance and allocates resources based on segment operating income as well as projected future performance. Segment operating income is defined as revenues less expenses identifiable to the product lines included within each segment. Segment operating income reconciles to consolidated income from continuing operations before income taxes by deducting corporate costs and other income or expense items that are not attributed to the segments and net interest expense. | ||||||||||||
Results by business segment were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Net sales: | ||||||||||||
Supply Technologies | $ | 559.6 | $ | 471.9 | $ | 483.8 | ||||||
Assembly Components | 490.5 | 412.8 | 304 | |||||||||
Engineered Products | 328.6 | 318.5 | 340.4 | |||||||||
$ | 1,378.70 | $ | 1,203.20 | $ | 1,128.20 | |||||||
Segment operating income: | ||||||||||||
Supply Technologies | $ | 42.5 | $ | 35 | $ | 37.5 | ||||||
Assembly Components | 42 | 31.8 | 19.9 | |||||||||
Engineered Products | 42.7 | 47.1 | 55 | |||||||||
Total segment operating income | 127.2 | 113.9 | 112.4 | |||||||||
Corporate costs | (28.3 | ) | (22.4 | ) | (17.5 | ) | ||||||
Litigation judgment and settlement costs | — | (5.2 | ) | (13.0 | ) | |||||||
Gain on acquisition of business | — | 0.6 | — | |||||||||
Interest expense | (26.1 | ) | (25.9 | ) | (26.0 | ) | ||||||
Income from continuing operations before income taxes | $ | 72.8 | $ | 61 | $ | 55.9 | ||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Identifiable assets: | ||||||||||||
Supply Technologies | $ | 277.6 | $ | 241.7 | $ | 207 | ||||||
Assembly Components | 340.5 | 276.7 | 230 | |||||||||
Engineered Products | 246.9 | 183.1 | 199.4 | |||||||||
General corporate | 98.9 | 105.9 | 86.4 | |||||||||
$ | 963.9 | $ | 807.4 | $ | 722.8 | |||||||
Depreciation and amortization expense: | ||||||||||||
Supply Technologies | $ | 4.5 | $ | 3 | $ | 3.9 | ||||||
Assembly Components | 14.2 | 11.6 | 9.5 | |||||||||
Engineered Products | 3.3 | 3.4 | 3.2 | |||||||||
General corporate | 0.4 | 0.5 | 0.9 | |||||||||
$ | 22.4 | $ | 18.5 | $ | 17.5 | |||||||
Capital expenditures: | ||||||||||||
Supply Technologies | $ | 5.8 | $ | 3.8 | $ | 1.6 | ||||||
Assembly Components | 14 | 21.5 | 22.1 | |||||||||
Engineered Products | 2.4 | 3.6 | 3.1 | |||||||||
General corporate | 1.5 | 0.9 | 0.1 | |||||||||
$ | 23.7 | $ | 29.8 | $ | 26.9 | |||||||
The percentage of net sales by product line included in each segment was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Supply Technologies: | ||||||||||||
Supply Technologies | 88 | % | 87 | % | 88 | % | ||||||
Engineered specialty products | 12 | % | 13 | % | 12 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Assembly Components: | ||||||||||||
Fluid routing | 49 | % | 54 | % | 50 | % | ||||||
Aluminum products | 43 | % | 37 | % | 39 | % | ||||||
Rubber and plastics | 6 | % | 7 | % | 9 | % | ||||||
Screw products | 2 | % | 2 | % | 2 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Engineered Products: | ||||||||||||
Industrial equipment business | 78 | % | 77 | % | 80 | % | ||||||
Forged and machined products | 22 | % | 23 | % | 20 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
The Company’s approximate percentage of net sales by geographic region was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | 74 | % | 74 | % | 77 | % | ||||||
Canada | 7 | % | 8 | % | 8 | % | ||||||
Europe | 6 | % | 5 | % | 4 | % | ||||||
Asia | 6 | % | 6 | % | 6 | % | ||||||
Mexico | 5 | % | 5 | % | 4 | % | ||||||
Other | 2 | % | 2 | % | 1 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
The basis for attributing revenue to individual countries is final shipping destination. | ||||||||||||
At December 31, 2014, 2013 and 2012, approximately 72%, 77% and 81%, respectively, of the Company’s assets were maintained in the United States. |
Acquisitions
Acquisitions | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Acquisitions | Acquisitions | |||
In December 2014, the Company acquired all the outstanding capital stock of Saet S.p.A. (“Saet”) for $22.1 million in cash. Saet is a leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions through its locations in Italy, China, India and Tennessee. The financial results of Saet are included in the Company's Engineered Products segment from the date of acquisition. Saet's sales for the year ended December 31, 2013 were approximately $35.9 million. | ||||
The acquisition of Saet was accounted for under the acquisition method of accounting. The entire purchase price allocation for Saet is preliminary. At December 31, 2014, the fair values of the assets acquired and liabilities assumed have been preliminarily estimated based on their carrying values and the excess consideration of $23.2 million has been preliminarily recorded as goodwill due to the proximity of the acquisition to the year-end date and pending finalization of the fair value. These preliminary estimates will be revised during the measurement period in 2015 as all pertinent information regarding finalization of the third-party valuations for inventories, intangible assets, goodwill, tangible assets, other liabilities and deferred income tax assets and liabilities acquired are fully evaluated by the Company. | ||||
In October 2014, the Company acquired all the outstanding capital stock of Autoform Tool and Manufacturing (“Autoform”) for a total purchase consideration of $48.9 million in cash. The acquisition was funded from borrowings under the revolving credit facility provided by the Credit Agreement. Autoform is a supplier of high end pressure fuel lines used in gasoline direct injection systems across a large number of engine platforms. Autoform's production facilities are located in Indiana. The financial results of Autoform are included in the Company's Assembly Components segment from the date of acquisition. Autoform generated approximately $36.8 million of revenue for the year ended December 31, 2013. | ||||
In June 2014, the Company acquired all the outstanding capital stock of Apollo Aerospace Group (“Apollo”) for $6.5 million, net of cash acquired. Apollo is a supply chain management company providing Class C production components and supply chain solutions to aerospace customers worldwide. Apollo generated net sales of approximately $8.1 million for its fiscal year ended March 31, 2014. The financial results of Apollo are included in the Company's Supply Technologies segment from the date of acquisition. | ||||
The acquisitions of Autoform and Apollo were accounted for under the acquisition method of accounting. The purchase price allocations were preliminary as of December 31, 2014. The Apollo purchase agreement provides payment of contingent consideration of approximately $2.4 million based on achievement of certain EBITDA targets over two years. The fair value of the earn-out was approximately $1.1 million at the date of the acquisition for a total purchase consideration of $6.5 million. On the acquisition date, a liability was recognized for the estimate of the acquisition date fair value of the earn-out. Any change in the fair value of the earn-out subsequent to the acquisition date will be recognized in selling, general and administrative expenses. Management's valuation of the fair value of tangible and intangible assets acquired and liabilities assumed for these acquisitions is based on estimates and assumptions. The purchase price allocation relating to these acquisitions is subject to further adjustment until all pertinent information regarding finalization of the appraisals for intangibles, goodwill and deferred income tax assets and liabilities acquired are fully evaluated by the Company and independent valuations are complete. Revisions to these estimates as fair values are finalized will be reflected in the financial statements throughout the measurement period. Based on the preliminary purchase price allocation for these acquisitions, goodwill of $5.7 million was recorded. | ||||
In November 2013, the Company acquired all the outstanding capital stock of QEF Global Limited (“QEF”). QEF is a provider of supply chain management solutions with four locations throughout Ireland, Scotland and England. QEF's sales for the year ended December 31, 2012 totaled approximately $14.0 million. | ||||
In October 2013, the Company acquired all of the outstanding capital stock of Henry Halstead Ltd. (“Henry Halstead”). Henry Halstead is a provider of supply chain management solutions throughout the United Kingdom and Ireland. The Company paid $24.2 million (net of cash acquired) in the aggregate for QEF and Henry Halstead. QEF and Henry Halstead are included in our Supply Technologies segment from their respective dates of acquisition. Based on the final purchase price allocations for these acquisitions, goodwill of $7.9 million was recorded. | ||||
During August 2013, the Company acquired certain assets and liabilities of a small business, which resulted in a pre-tax gain of $0.6 million during the third quarter of 2013. The small business is engaged in the business of designing, manufacturing, selling, distributing and installing various tube bending machines and related tooling, spare and replacement parts and ancillary services for commercial applications. The small business is included in our Engineered Products segment from the date of acquisition. The purchase price was not significant to the results of operations, financial condition or liquidity. | ||||
Effective April 26, 2013, the Company acquired certain assets and assumed specific liabilities relating to Bates Rubber Inc. (“Bates”) for a total purchase price of $20.8 million in cash. The acquisition was funded from borrowings under the revolving credit facility provided by the Credit Agreement. Bates is a leading manufacturer of extruded, formed and molded products and assemblies for the transportation and industrial markets. Bates’ production facilities are located in Tennessee. The financial results of Bates are included in the Company’s Assembly Components segment and had insignificant revenues and net income from the date acquired. The acquisition was accounted for under the acquisition method of accounting. Based on the final purchase price allocation goodwill of $5.0 million was recorded. Assuming the QEF, Henry Halstead and Bates acquisitions had taken place at the beginning of 2012, the Company's results would not have been materially different. | ||||
On November 30, 2012, the Company completed the acquisition of Elastomeros Tecnicos Moldeados Inc. (“ETM”) for $1.1 million in cash, $0.5 million in promissory notes payable and $0.1 million annually in each of the next four years, if ETM achieves certain earnings levels. ETM is a provider of molded rubber products and has been integrated into the Company’s Assembly Components segment. The acquisition was accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the purchase price is allocated to ETM’s tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of November 30, 2012, the effective date of the acquisition. Based on the final purchase price allocation, goodwill of $0.9 million was recorded. | ||||
On March 23, 2012, the Company completed the acquisition of Fluid Routing Solutions LLC (“FRS”), a leading manufacturer of automotive and industrial rubber and thermoplastic hose products and fuel filler and hydraulic fluid assemblies, in an all cash transaction valued at $98.8 million. FRS products include fuel filler, hydraulic, and thermoplastic assemblies and several forms of manufactured rubber and thermoplastic hose, including bulk and formed fuel, power steering, transmission oil cooling, hydraulic and thermoplastic hose. FRS sells to automotive and industrial customers throughout North America, Europe and Asia. FRS has five production facilities located in Florida, Michigan, Ohio, Tennessee and the Czech Republic. FRS is included in the Company’s Assembly Components segment and had revenues of $152.4 million and net income of $7.1 million for the period from the date acquired through December 31, 2012. The Company funded the acquisition with cash of $40.0 million, a $25.0 million seven-year amortizing term loan provided by the Credit Agreement and secured by certain real estate and machinery and equipment of the Company and $33.8 million of borrowings under the revolving credit facility provided by the Credit Agreement. The acquisition was accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price is allocated to FRS’ net tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values as of March 23, 2012, the effective date of the acquisition. Based on management’s valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions, the final purchase price is allocated as follows: | ||||
(In millions) | ||||
Cash and cash equivalents | $ | 2.8 | ||
Accounts receivable | 30.9 | |||
Inventories | 12.4 | |||
Prepaid expenses and other current assets | 2.7 | |||
Property, plant and equipment | 30.2 | |||
Customer relationships | 29.4 | |||
Trademarks and trade name | 11.5 | |||
Other assets | 0.2 | |||
Accounts payable | (17.8 | ) | ||
Accrued expenses | (15.6 | ) | ||
Deferred tax liability | (26.4 | ) | ||
Other long-term liabilities | (0.8 | ) | ||
Goodwill | 39.3 | |||
Total purchase price | $ | 98.8 | ||
The following unaudited pro forma information is provided to present a summary of the combined results of the Company’s operations with FRS as if the acquisition had occurred on January 1, 2011. The unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed at the date indicated above. | ||||
Year Ended December 31, | ||||
2012 | ||||
(In millions) | ||||
Pro forma revenues | $ | 1,179.10 | ||
Pro forma net income | $ | 39.1 | ||
Dispositions
Dispositions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Dispositions | Dispositions | |||||||
On September 3, 2013, the Company sold all of the outstanding equity interests of a non-core business unit in the Supply Technologies segment for $8.5 million in cash. This business unit is a provider of high-quality machine to machine information technology solutions, products and services. As a result of the sale, this business unit has been removed from the Supply Technologies segment and presented as a discontinued operation for all of the periods presented. Effective immediately upon the disposition, the non-core business unit was released from its guarantee of the Company's 8.125% Senior Notes due 2021 (the "Notes"). The financial position of the discontinued operation was not significant. Select financial information included in discontinued operations were as follows: | ||||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Net sales | $ | 5.2 | $ | 5.8 | ||||
Loss from discontinued operations before tax | $ | (1.3 | ) | $ | (4.0 | ) | ||
Income tax benefit from operations | 0.5 | 1.6 | ||||||
Net loss from discontinued operations | (0.8 | ) | (2.4 | ) | ||||
Gain on sale of business before tax | 5.3 | — | ||||||
Income tax expense from gain on sale of business | (1.5 | ) | — | |||||
Net gain on sale of business | 3.8 | — | ||||||
Income (loss) from discontinued operations, net of taxes | $ | 3 | $ | (2.4 | ) | |||
On August 1, 2013, the Company sold 25% of its Southwest Steel Processing LLC ("SSP") business to Arkansas Steel Associates, LLC for $5.0 million in cash. SSP is included in our Engineered Products segment. This transaction facilitates the Company's capacity expansion in one of its growing product lines. As of June 30, 2013, SSP had guaranteed the Notes. Effective in the third quarter of 2013, SSP was released from this guarantee in conjunction with its designation as an "Unrestricted Subsidiary" under the indenture governing the Notes and the sale of the 25% of its business. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill | Goodwill | |||||||||||||||
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||||||
Supply Technologies | Assembly Components | Engineered Products | Total | |||||||||||||
(In millions) | ||||||||||||||||
Balance at January 1, 2012 | $ | — | $ | 4.6 | $ | 4.9 | $ | 9.5 | ||||||||
Acquisitions | — | 40.2 | — | 40.2 | ||||||||||||
Balance at December 31, 2012 | — | 44.8 | 4.9 | 49.7 | ||||||||||||
Acquisitions | 6.2 | 4.2 | — | 10.4 | ||||||||||||
Foreign currency translation | 0.2 | — | 0.1 | 0.3 | ||||||||||||
Balance at December 31, 2013 | 6.4 | 49 | 5 | 60.4 | ||||||||||||
Acquisitions | 0.7 | 5 | 23.2 | 28.9 | ||||||||||||
Foreign currency translation | 0.5 | — | (0.3 | ) | 0.2 | |||||||||||
Balance at December 31, 2014 | $ | 7.6 | $ | 54 | $ | 27.9 | $ | 89.5 | ||||||||
The increase in goodwill from December 31, 2013 is due to the acquisitions of Apollo in the second quarter of 2014 and Autoform and Saet in the fourth quarter of 2014. Apollo is included in the Supply Technologies reportable segment, Autoform is included in the Assembly Components reportable segment and Saet is included in the Engineered Products reportable segment. The goodwill associated with the Autoform transaction is deductible for income tax purposes. The goodwill associated with the Apollo and Saet transactions is not deductible for income tax purposes. | ||||||||||||||||
The increase in goodwill from December 31, 2012 is due to the acquisitions of Bates in the second quarter of 2013 and Henry Halstead and QEF in the fourth quarter of 2013. Bates is included in the Assembly Components reportable segment and Henry Halstead and QEF are included in the Supply Technologies reportable segment. The goodwill associated with the Bates transaction is deductible for income tax purposes. The goodwill associated with the Henry Halstead and QEF transactions is not deductible for income tax purposes. | ||||||||||||||||
The increase in goodwill from January 1, 2012 to December 31, 2012 is due to the acquisitions of FRS in the first quarter of 2012 and ETM in the fourth quarter of 2012. |
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Other Intangible Assets | Other Intangible Assets | |||||||||||||||||||||||||
Information regarding other intangible assets as of December 31, 2014 and December 31, 2013 follows: | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Weighted Average Useful Life | Acquisition | Accumulated | Net | Acquisition | Accumulated | Net | ||||||||||||||||||||
Costs | Amortization | Costs | Amortization | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Non-contractual customer relationships | 11.9 years | $ | 77.3 | $ | 13.2 | $ | 64.1 | $ | 61.1 | $ | 8.7 | $ | 52.4 | |||||||||||||
Indefinite-lived tradenames | * | 14 | * | 14 | 11.7 | * | 11.7 | |||||||||||||||||||
Other | 17.5 years | 12.3 | 2.3 | 10 | 3.9 | 1.8 | 2.1 | |||||||||||||||||||
Total | $ | 103.6 | $ | 15.5 | $ | 88.1 | $ | 76.7 | $ | 10.5 | $ | 66.2 | ||||||||||||||
* Not meaningful, tradenames have an indefinite life. | ||||||||||||||||||||||||||
Information regarding amortization expense of other intangible assets follows: | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Amortization expense | $ | 4.8 | $ | 3.5 | $ | 2.5 | ||||||||||||||||||||
Amortization expense for the five years subsequent to December 31, 2014 follows: | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
2015 | $ | 6.5 | ||||||||||||||||||||||||
2016 | $ | 6.4 | ||||||||||||||||||||||||
2017 | $ | 6.4 | ||||||||||||||||||||||||
2018 | $ | 6.2 | ||||||||||||||||||||||||
2019 | $ | 5.8 | ||||||||||||||||||||||||
Other_LongTerm_Assets
Other Long-Term Assets | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other Long-Term Assets | Other Long-Term Assets | |||||||
Other assets consist of the following: | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Pension assets | $ | 64.6 | $ | 73.3 | ||||
Deferred financing costs, net | 5.1 | 5.7 | ||||||
Other | 3.5 | 1.4 | ||||||
Total | $ | 73.2 | $ | 80.4 | ||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Payables and Accruals [Abstract] | ||||||||||||
Accrued Expenses | Accrued Expenses | |||||||||||
Accrued expenses and other current liabilities consist of the following: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Accrued salaries, wages and benefits | $ | 25.4 | $ | 22.2 | ||||||||
Advance billings | 28.4 | 20.4 | ||||||||||
Current portion of long-term debt | 9.4 | 4.4 | ||||||||||
Warranty accrual | 6.9 | 5.4 | ||||||||||
Interest payable | 5.2 | 5.6 | ||||||||||
Current portion of other post-retirement liabilities | 1.6 | 1.7 | ||||||||||
Taxes, income and other | — | 2.9 | ||||||||||
Other | 26.8 | 23 | ||||||||||
Total | $ | 103.7 | $ | 85.6 | ||||||||
Substantially all advance billings relate to the Company’s industrial equipment business unit. Warranty liabilities are primarily associated with the Company’s industrial equipment business unit and the fluid routing solutions business. | ||||||||||||
The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents the changes in the Company’s product warranty liability for the years ended December 31, 2014, 2013, and 2012: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, | $ | 5.4 | $ | 6.9 | $ | 4.2 | ||||||
Claims paid during the year | (2.9 | ) | (6.4 | ) | (6.0 | ) | ||||||
Warranty expense | 4 | 4.9 | 5.4 | |||||||||
Acquired warranty liabilities | 0.4 | — | 3.3 | |||||||||
Balance at December 31, | $ | 6.9 | $ | 5.4 | $ | 6.9 | ||||||
Financing_Arrangements
Financing Arrangements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Financing Arrangements | Financing Arrangements | |||||||||||||||
Long-term debt consists of the following: | ||||||||||||||||
Carrying Value at | ||||||||||||||||
Issuance Date | Maturity Date | Interest Rate at December 31, 2014 | December 31, 2014 | December 31, 2013 | ||||||||||||
(In millions) | ||||||||||||||||
Senior Notes | 1-Apr-11 | 1-Apr-21 | 8.125 | % | $ | 250 | $ | 250 | ||||||||
Revolving credit | — | 31-Jul-19 | 1.69 | % | 162 | 111 | ||||||||||
Term loan | — | 31-Jul-19 | 2.25 | % | 28.8 | 18.7 | ||||||||||
Other | Various | Various | Various | 3 | 3.9 | |||||||||||
Total debt | 443.8 | 383.6 | ||||||||||||||
Less current maturities | 9.4 | 4.4 | ||||||||||||||
Total long-term debt, net of current portion | $ | 434.4 | $ | 379.2 | ||||||||||||
On April 7, 2011, the Company completed the sale of $250.0 million in the aggregate principal amount of the Notes. The Notes bear an interest rate of 8.125% per annum, payable semi-annually in arrears on April 1 and October 1 of each year. The Notes mature on April 1, 2021. The Company is a party to a credit and security agreement, dated November 5, 2003, as amended (the “Credit Agreement”), with a group of banks, under which it may borrow or issue standby letters of credit or commercial letters of credit. | ||||||||||||||||
On July 31, 2014, the Company entered into a sixth amendment and restatement of the credit agreement (the “Amended Credit Agreement”). The Amended Credit Agreement, among other things, increases the revolving credit facility to $230.0 million, provides a term loan for $16.1 million and extends the maturity date of the borrowings under the Amended Credit Agreement to July 31, 2019. The revolving credit facility includes a Canadian sub-limit of $15.0 million and a European sub-limit of $10.0 million (which may be increased to $25.0 million) for borrowings in those locations. | ||||||||||||||||
At the Company’s election, domestic amounts borrowed under the revolving credit facility may be borrowed at either: | ||||||||||||||||
•LIBOR plus 1.5% to 2.5%; or | ||||||||||||||||
•the bank’s prime lending rate minus 0.25% to 1.25%. | ||||||||||||||||
At the Company's election, amounts borrowed under the term loan may be borrowed at either: | ||||||||||||||||
•LIBOR plus 2.0% to 3.0%; or | ||||||||||||||||
•the bank’s prime lending rate minus 0.75% to plus 0.25%. | ||||||||||||||||
The LIBOR-based interest rate is dependent on the Company’s debt service coverage ratio, as defined in the Amended Credit Agreement. | ||||||||||||||||
Amounts borrowed under the Canadian revolving credit facility provided by the Amended Credit Agreement may be borrowed at either: | ||||||||||||||||
•the Canadian deposit offered rate plus 1.5% to 2.5%; | ||||||||||||||||
•the Canadian prime lending rate plus 0.0% to 1.0%; or | ||||||||||||||||
•the US base rate plus 0.0% to 1.0%. | ||||||||||||||||
Under the Amended Credit Agreement, a detailed borrowing base formula provides borrowing availability to the Company based on percentages of eligible accounts receivable and inventory. The term loan is amortized based on a seven-year schedule with the balance due at maturity (July 31, 2019). The Amended Credit Agreement also reduced the commitment fee for the revolving credit facility. Additionally, the Company has the option, pursuant to the Amended Credit Agreement, to increase the availability under the revolving credit facility by $50.0 million. | ||||||||||||||||
The Amended Credit Agreement was further amended in accordance with Amendment No. 1 to the Amended Credit Agreement, dated October 24, 2014 (the “Amendment”). The Amendment: | ||||||||||||||||
• | increases the revolving credit facility from $230.0 million to $250.0 million; | |||||||||||||||
• | increases the inventory advance rate from 50% to 60%, reducing back to 50% on a pro-rata quarterly basis over 36 months commencing April 1, 2015; | |||||||||||||||
• | reloads the term loan up to $35.0 million from $15.5 million, of which $28.8 million has been borrowed and is outstanding as of December 31, 2014; | |||||||||||||||
• | increases the Canadian sub-limit up to $25.0 million from $15.0 million; | |||||||||||||||
• | increases the European sub-limit up to $25.0 million from $10.0 million; and | |||||||||||||||
• | provides minor pricing adjustments including pricing the first $22.0 million drawn on the revolver at LIBOR + 3.50%, reducing automatically on a pro-rata quarterly basis over 36 months commencing April 1, 2015. | |||||||||||||||
At December 31, 2014, in addition to amounts borrowed under the revolving credit facility, there was $20.5 million outstanding for standby letters of credit. | ||||||||||||||||
At December 31, 2014, the Company had approximately $55.4 million of unused borrowing capacity under the revolving credit facility. | ||||||||||||||||
The following table represents fair value information of the Notes, classified as Level 1, at December 31, 2014 and December 31, 2013. The fair value was estimated using quoted market prices. | ||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
(In millions) | ||||||||||||||||
Carrying amount | $ | 250 | $ | 250 | ||||||||||||
Fair value | $ | 266.3 | $ | 275.6 | ||||||||||||
Maturities of long-term debt during each of the five years subsequent to December 31, 2014 follow: | ||||||||||||||||
(In millions) | ||||||||||||||||
2015 | $ | 9.4 | ||||||||||||||
2016 | $ | 12.2 | ||||||||||||||
2017 | $ | 12.1 | ||||||||||||||
2018 | $ | 6.5 | ||||||||||||||
2019 | $ | 153.6 | ||||||||||||||
Foreign subsidiaries of the Company had no borrowings at December 31, 2014 and 2013 and outstanding bank guarantees of approximately $5.2 million and $7.2 million at December 31, 2014 and 2013, respectively, under their credit arrangements. | ||||||||||||||||
The Notes are general unsecured senior obligations of the Company and are fully and unconditionally guaranteed on a joint and several basis by all material 100% owned domestic subsidiaries of the Company. Provisions of the indenture governing the Notes and the Credit Agreement contain restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to make certain payments, investments, loans and guarantees and to sell or otherwise dispose of a substantial portion of assets or to merge or consolidate with an unaffiliated entity. At December 31, 2014, the Company was in compliance with all financial covenants of the Credit Agreement. | ||||||||||||||||
The weighted average interest rate on all debt was 5.62% at December 31, 2014 and 6.10% at December 31, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income from continuing operations before income tax expense consists of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
United States | $ | 54.3 | $ | 49.3 | $ | 40.6 | ||||||
Outside the United States | 18.5 | 11.7 | 15.3 | |||||||||
$ | 72.8 | $ | 61 | $ | 55.9 | |||||||
Income taxes consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Current expense: | ||||||||||||
Federal | $ | 17.6 | $ | 16 | $ | 7.5 | ||||||
State | 0.8 | 1.5 | 0.9 | |||||||||
Foreign | 6.2 | 4.2 | 4.4 | |||||||||
24.6 | 21.7 | 12.8 | ||||||||||
Deferred expense (benefit): | ||||||||||||
Federal | 1.1 | 1.4 | 7.9 | |||||||||
State | (0.8 | ) | (2.6 | ) | (0.2 | ) | ||||||
Foreign | 0.3 | (0.9 | ) | 0.3 | ||||||||
0.6 | (2.1 | ) | 8 | |||||||||
Income tax expense | $ | 25.2 | $ | 19.6 | $ | 20.8 | ||||||
The reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
Rate Reconciliation | 2014 | 2013 | 2012 | |||||||||
(In millions) | ||||||||||||
Tax at statutory rate | $ | 25.4 | $ | 21.3 | $ | 19.7 | ||||||
Effect of state income taxes, net | 1.4 | 1.1 | 1 | |||||||||
Effect of foreign operations | (0.9 | ) | (0.2 | ) | (0.1 | ) | ||||||
Valuation allowance | (1.1 | ) | (1.6 | ) | (0.2 | ) | ||||||
Non-deductible items | 1.8 | 0.7 | 0.6 | |||||||||
Manufacturer's deduction | (1.4 | ) | (1.4 | ) | (0.6 | ) | ||||||
Other, net | — | (0.3 | ) | 0.4 | ||||||||
Total | $ | 25.2 | $ | 19.6 | $ | 20.8 | ||||||
Significant components of the Company’s net deferred tax assets and liabilities are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Deferred tax assets: | ||||||||||||
Postretirement benefit obligation | $ | 6.2 | $ | 5.9 | ||||||||
Inventory | 13.7 | 13.2 | ||||||||||
Net operating loss and credit carryforwards | 6.3 | 3.8 | ||||||||||
Goodwill | 1 | 0.5 | ||||||||||
Warranty reserve | 2.5 | 2.1 | ||||||||||
Compensation | 6 | 4.3 | ||||||||||
Other | 10.7 | 10.1 | ||||||||||
Total deferred tax assets | 46.4 | 39.9 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | 13.2 | 11.7 | ||||||||||
Pension | 23.3 | 26.4 | ||||||||||
Goodwill | 2.7 | 2.7 | ||||||||||
Intangible assets | 14.5 | 15.4 | ||||||||||
Other | 1.4 | 1.8 | ||||||||||
Total deferred tax liabilities | 55.1 | 58 | ||||||||||
Net deferred tax liabilities prior to valuation allowances | (8.7 | ) | (18.1 | ) | ||||||||
Valuation allowances | (7.1 | ) | (2.6 | ) | ||||||||
Net deferred tax liability | $ | (15.8 | ) | $ | (20.7 | ) | ||||||
At December 31, 2014, the Company has state and foreign net operating loss carryforwards for income tax purposes. The foreign net operating loss carryforward is $16.4 million, of which $1.9 million expires between 2015 and 2024 and the remainder has no expiration date. The Company also has a tax benefit from a state net operating loss carryforward of $2.9 million that expires between 2015 and 2033. The Company also has a foreign capital loss carryforward of $0.6 million that has no expiration date. | ||||||||||||
The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company’s tax years for 2011 through 2014 remain open for examination by the U.S. and various state and foreign taxing authorities. | ||||||||||||
As of December 31, 2014 and 2013, the Company was not in a cumulative three-year loss position and it was determined that it was more likely than not that its U.S. deferred tax assets will be realized. As of December 31, 2014, the Company reversed a valuation allowance of $1.3 million against its state net operating loss carryforward. As of December 31, 2014 and 2013, the Company recorded valuation allowances of $6.9 million and $1.2 million, respectively, against certain foreign net deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including reversals of deferred tax liabilities). The Company reviews all valuation allowances related to deferred tax assets and will reverse these valuation allowances, partially or totally, when appropriate under ASC 740. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Unrecognized Tax Benefit — January 1, | $ | 5.9 | $ | 6.1 | $ | 6 | ||||||
Gross Increases — Tax Positions in Prior Period | 0.8 | 0.4 | 0.1 | |||||||||
Gross Decreases — Tax Positions in Prior Period | (0.2 | ) | (0.6 | ) | — | |||||||
Gross Increases — Tax Positions in Current Period | — | — | 0.1 | |||||||||
Lapse of Statute of Limitations | — | — | (0.1 | ) | ||||||||
Unrecognized Tax Benefit — December 31, | $ | 6.5 | $ | 5.9 | $ | 6.1 | ||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $5.4 million at December 31, 2014 and $4.7 million at December 31, 2013. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2014 and 2013, the Company recognized approximately $0.3 million and $0.7 million, respectively, in net interest and penalties. The Company had approximately $1.7 million and $1.4 million for the payment of interest and penalties accrued at December 31, 2014 and 2013, respectively. The Company does not expect that the unrecognized tax benefit will change significantly within the next twelve months. | ||||||||||||
Deferred taxes have not been provided on approximately $90.2 million of undistributed earnings of the Company’s foreign subsidiaries as it is the Company’s policy and intent to permanently reinvest such earnings. The Company has determined that it is not practicable to determine the unrecognized tax liability on such undistributed earnings. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||
A summary of Holdings' stock option activity as of December 31, 2014 and changes during the year then ended is presented below: | ||||||||||||||
2014 | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(In whole shares) | (In millions) | |||||||||||||
Outstanding — beginning of year | 146,000 | $ | 16.71 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (2,500 | ) | 14.12 | |||||||||||
Canceled or expired | — | — | ||||||||||||
Outstanding — end of year | 143,500 | $ | 16.76 | 1.7 years | $ | 6.6 | ||||||||
Options exercisable | 143,500 | $ | 16.76 | 1.7 years | $ | 6.6 | ||||||||
Exercise prices for options outstanding as of December 31, 2014 range from $14.12 to $15.61 and $20.00 to $24.92. The number of options outstanding and exercisable at December 31, 2014, which correspond with these ranges, are 108,500 and 35,000, respectively. | ||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2014, 2013 and 2012 was $0.1 million, $1.1 million and $0.8 million, respectively. Net cash proceeds from the exercise of stock options were $0.0 million, $0.4 million and $0.5 million, respectively. | ||||||||||||||
In 2012, Holdings awarded an employee the option to purchase up to an aggregate of $0.5 million of Holdings' common stock at its then-current market value at a 20% discount and recognized compensation expense of $0.1 million. | ||||||||||||||
There were no stock options awarded in 2014, 2013 and 2012. | ||||||||||||||
A summary of Holdings' restricted share and performance share activity for the year ended December 31, 2014 is as follows: | ||||||||||||||
2014 | ||||||||||||||
Time-Based | Performance-Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
(In whole shares) | (In whole shares) | |||||||||||||
Outstanding — beginning of year | 422,898 | $ | 21.04 | 42,000 | $ | 20.3 | ||||||||
Granted | 137,750 | 57.04 | — | — | ||||||||||
Vested | (211,048 | ) | 23.71 | (14,000 | ) | 20.3 | ||||||||
Canceled or expired | (4,668 | ) | 38.19 | — | — | |||||||||
Outstanding — end of year | 344,932 | $ | 33.55 | 28,000 | $ | 20.3 | ||||||||
The Company recognized compensation expense of $5.8 million, $4.7 million and $2.7 million for the years ended December 31, 2014, 2013 and 2012, respectively, relating to restricted shares and performance shares. | ||||||||||||||
The total fair value of restricted stock units vested during the years ended December 31, 2014, 2013 and 2012 was $11.5 million, $6.1 million and $4.6 million, respectively. | ||||||||||||||
The Company recognizes compensation cost of all share-based awards as expense on a straight-line basis over the vesting period of the awards. | ||||||||||||||
As of December 31, 2014, the Company had unrecognized compensation expense of $9.8 million, before taxes, related to stock option awards and restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of 2.0 years. | ||||||||||||||
The number of shares available for future grants for all Holdings' plans at December 31, 2014 is 120,871. |
Commitments_Contingencies_and_
Commitments, Contingencies and Litigation Judgment | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments, Contingencies and Litigation Judgment | Commitments, Contingencies and Litigation Judgment | |||
The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. Although the Company cannot precisely predict the amount of any liability that may ultimately arise with respect to any of these matters, the Company records provisions when it considers the liability probable and reasonably estimable. Our provisions are based on historical experience and legal advice, reviewed quarterly and adjusted according to developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments about potential actions by third parties, such as regulators, courts, and state and federal legislatures. Changes in the amounts of our loss provisions, which can be material, affect our financial condition. Due to the inherent uncertainties in the process undertaken to estimate potential losses, we are unable to estimate an additional range of loss in excess of our accruals. While it is reasonably possible that such excess liabilities, if they were to occur, could be material to operating results in any given quarter or year of their recognition, we do not believe that it is reasonably possible that such excess liabilities would have a material adverse effect on our long-term results of operations, liquidity or consolidated financial position. | ||||
Our subsidiaries are involved in a number of contractual and warranty related disputes. At this time, we cannot reasonably determine the probability of a loss, and the timing and amount of loss, if any, cannot be reasonably estimated. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. | ||||
IPSCO Tubulars Inc. d/b/a TMK IPSCO sued Ajax Tocco Magnethermic Corporation ("ATM"), a subsidiary of Park-Ohio Industries, Inc., in the United States District Court for the Eastern District of Arkansas claiming that equipment supplied by ATM for heat treating certain steel pipe at IPSCO’s Blytheville, Arkansas facility did not perform as required by the contract. The complaint alleged causes of action for breach of contract, gross negligence, and constructive fraud. IPSCO sought approximately $10 million in damages plus an unspecified amount of punitive damages. ATM denied the allegations. ATM subsequently obtained summary judgment on the constructive fraud claim, which was dismissed by the district court prior to trial. The remaining claims were the subject of a bench trial that occurred in May 2013. After IPSCO presented its case, the district court entered partial judgment in favor of ATM, dismissing the gross negligence claim, a portion of the breach of contract claim, and any claim for punitive damages. The trial proceeded with respect to the remainder of IPSCO’s claim for breach of contract. In September 2013, the district court issued a judgment in favor of IPSCO in the amount of $5.2 million. IPSCO subsequently filed a motion seeking to recover $3.8 million in attorneys’ fees and costs. The district court reserved ruling on that issue pending an appeal. In October 2013, ATM filed an appeal with the U.S. Court of Appeals for the Eighth Circuit seeking reversal of the judgment in favor of IPSCO. In November 2013, IPSCO filed a cross-appeal seeking reversal of the dismissal of its claims for gross negligence and punitive damages. The Eighth Circuit issued an opinion in March 2015 affirming in part, reversing in part, and remanding the case. It affirmed the district court's determination that ATM was liable for breach of contract. It also affirmed the district court's dismissal of IPSCO's claims for gross negligence and punitive damages. However, the Eighth Circuit reversed nearly all of the damages awarded by the district court and remanded for further findings on the issue of damages, including whether consequential damages are barred under the express language of the contract. Because IPSCO did not appeal the award of $5.2 million in its favor, those damages may be decreased, but cannot be increased, on remand. IPSCO's motion to recover attorneys' fees and costs is stayed pending the outcome of the proceedings on remand. | ||||
In August 2013, the Company received a subpoena from the staff of the SEC in connection with the staff’s investigation of a third party. At that time, the Company also learned that the Department of Justice (“DOJ”) is conducting a criminal investigation of the third party. In connection with its initial response to the staff’s subpoena, the Company disclosed to the staff of the SEC that, in November 2007, the third party participated in a payment on behalf of the Company to a foreign tax official that implicates the Foreign Corrupt Practices Act (“FCPA”). | ||||
The Board of Directors of the Company has formed a special committee to review the Company’s transactions with the third party and to make any recommendations to the Board of Directors with respect thereto. | ||||
The Company intends to cooperate fully with the SEC and the DOJ in connection with their investigations of the third party and with the SEC in light of the Company’s disclosure. The Company is unable to predict the outcome or impact of the special committee’s investigation or the length, scope or results of the SEC’s review or the impact on its results of operations. | ||||
Leases | ||||
Future minimum lease commitments during each of the five years following December 31, 2014 and thereafter are as follows: | ||||
(In millions) | ||||
2015 | $ | 14.8 | ||
2016 | $ | 12.7 | ||
2017 | $ | 9.9 | ||
2018 | $ | 6.1 | ||
2019 | $ | 2.9 | ||
Thereafter | $ | 2.3 | ||
Rental expense for 2014, 2013 and 2012 was $18.6 million, $17.6 million and $15.8 million, respectively. | ||||
Certain of the Company’s leases are with related parties at an annual rental expense of approximately $2.3 million. Transactions with related parties are in the ordinary course of business and are not material to the Company’s financial position, results of operations or cash flows. | ||||
During the years ended December 31, 2013 and 2012, we entered into sales leaseback transactions for certain equipment. No gains or losses resulted from these transactions and the leases are being accounted for as operating leases. |
Pensions_and_Postretirement_Be
Pensions and Postretirement Benefits | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Pensions and Postretirement Benefits | Pensions and Postretirement Benefits | |||||||||||||||||||||||||||||||
The Company and its subsidiaries have pension plans, principally noncontributory defined benefit or noncontributory defined contribution plans, covering substantially all employees. In addition, the Company has an unfunded postretirement benefit plan. In April 2011, the Company amended one of its plans to cover most U.S. employees not covered by collective bargaining agreements using a cash balance formula, which increased the 2011 benefit obligation by approximately $1.1 million. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits that are based upon a percentage of current eligible earnings and current interest credits. For the remaining defined benefit plans, benefits are based on the employee’s years of service. For the defined contribution plans, the costs charged to operations and the amount funded are based upon a percentage of the covered employees’ compensation. | ||||||||||||||||||||||||||||||||
The following tables set forth the change in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 52.1 | $ | 56.4 | $ | 16.2 | $ | 18.5 | ||||||||||||||||||||||||
Service cost | 2.2 | 2.6 | — | 0.1 | ||||||||||||||||||||||||||||
Interest cost | 2.2 | 2 | 0.6 | 0.6 | ||||||||||||||||||||||||||||
Actuarial (gains) losses | 8.8 | (4.4 | ) | 1.9 | (1.3 | ) | ||||||||||||||||||||||||||
Plan amendment | 0.4 | — | — | — | ||||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.6 | ) | (4.5 | ) | (1.7 | ) | (1.7 | ) | ||||||||||||||||||||||||
Benefit obligation at end of year | $ | 61.1 | $ | 52.1 | $ | 17 | $ | 16.2 | ||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 125.4 | $ | 109.4 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 5.8 | 21.8 | — | — | ||||||||||||||||||||||||||||
Company contributions | — | — | 1.7 | 1.7 | ||||||||||||||||||||||||||||
Cash transfer to fund postretirement benefit payments | (0.9 | ) | (1.3 | ) | — | — | ||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.6 | ) | (4.5 | ) | (1.7 | ) | (1.7 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 125.7 | $ | 125.4 | $ | — | $ | — | ||||||||||||||||||||||||
Funded (underfunded) status of the plans | $ | 64.6 | $ | 73.3 | $ | (17.0 | ) | $ | (16.2 | ) | ||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | 64.6 | $ | 73.3 | $ | — | $ | — | ||||||||||||||||||||||||
Noncurrent liabilities | — | — | 15.4 | 14.5 | ||||||||||||||||||||||||||||
Current liabilities | — | — | 1.6 | 1.7 | ||||||||||||||||||||||||||||
$ | 64.6 | $ | 73.3 | $ | 17 | $ | 16.2 | |||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 15.3 | $ | 2.1 | $ | 7.6 | $ | 6.3 | ||||||||||||||||||||||||
Net prior service cost (credit) | 0.4 | 0.1 | (0.4 | ) | (0.5 | ) | ||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | 15.7 | $ | 2.2 | $ | 7.2 | $ | 5.8 | ||||||||||||||||||||||||
As of December 31, 2014 and 2013, the Company’s defined benefit pension plans did not hold a material amount of shares of Holdings' common stock. | ||||||||||||||||||||||||||||||||
The pension plan weighted-average asset allocation at December 31, 2014 and 2013 and target allocation for 2015 are as follows: | ||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||
Target 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Equity securities | 45-75% | 64.6 | % | 67.2 | % | |||||||||||||||||||||||||||
Debt securities | 10-40 | 27.9 | % | 25.4 | % | |||||||||||||||||||||||||||
Other | 0-20 | 7.5 | % | 7.4 | % | |||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans assets: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Collective trust and pooled insurance funds: | ||||||||||||||||||||||||||||||||
Common stock | $ | 45.6 | $ | 2.2 | $ | — | $ | 47.8 | $ | 48.3 | $ | 2.5 | $ | — | $ | 50.8 | ||||||||||||||||
Equity Funds | 26.9 | — | — | 26.9 | 26.9 | — | — | 26.9 | ||||||||||||||||||||||||
Foreign Stock | 5.4 | — | — | 5.4 | 5.6 | — | — | 5.6 | ||||||||||||||||||||||||
U.S. Government obligations | 7 | — | — | 7 | 5.1 | — | — | 5.1 | ||||||||||||||||||||||||
Fixed income funds | 19.6 | — | — | 19.6 | 18.8 | — | — | 18.8 | ||||||||||||||||||||||||
Balanced funds | 2.1 | — | — | 2.1 | 2.1 | — | — | 2.1 | ||||||||||||||||||||||||
Corporate Bonds | 7.5 | — | — | 7.5 | 6.8 | — | — | 6.8 | ||||||||||||||||||||||||
Cash and Cash Equivalents | 1.8 | — | — | 1.8 | 2 | — | — | 2 | ||||||||||||||||||||||||
Hedge funds | — | — | 7.6 | 7.6 | — | — | 7.3 | 7.3 | ||||||||||||||||||||||||
$ | 115.9 | $ | 2.2 | $ | 7.6 | $ | 125.7 | $ | 115.6 | $ | 2.5 | $ | 7.3 | $ | 125.4 | |||||||||||||||||
The following table presents a reconciliation of Level 3 assets, as defined in Note 1, held during the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||
Balance at | Net Unrealized | Purchases | Balance at | |||||||||||||||||||||||||||||
Beginning of Year | Gain | End of Year | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Hedge Funds: | ||||||||||||||||||||||||||||||||
2014 | $ | 7.3 | $ | 0.3 | $ | — | $ | 7.6 | ||||||||||||||||||||||||
2013 | $ | 6.4 | $ | 0.9 | $ | — | $ | 7.3 | ||||||||||||||||||||||||
The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31, and to measure the net periodic benefit cost in the following year. | ||||||||||||||||||||||||||||||||
Weighted-Average assumptions as of December 31, | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Discount rate | 3.82 | % | 4.51 | % | 3.66 | % | 3.6 | % | 4.21 | % | 3.35 | % | ||||||||||||||||||||
Expected return on plan assets | 8.25 | % | 8.25 | % | 8.25 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Rate of compensation increase | 3 | % | 2 | % | 2 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Medical health care benefits rate increase | N/A | N/A | N/A | 7 | % | 6.5 | % | 7 | % | |||||||||||||||||||||||
Medical drug benefits rate increase | N/A | N/A | N/A | 7 | % | 6.5 | % | 7.25 | % | |||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||
Year of ultimate trend rate | N/A | N/A | N/A | 2022 | 2042 | 2042 | ||||||||||||||||||||||||||
In determining its expected return on plan assets assumption for the year ended December 31, 2014, the Company considered historical experience, its asset allocation, expected future long-term rates of return for each major asset class, and an assumed long-term inflation rate. Based on these factors, the Company derived an expected return on plan assets for the year ended December 31, 2014 of 8.25%. This assumption was supported by the asset return generation model, which projected future asset returns using simulation and asset class correlation. | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||
Service costs | $ | 2.2 | $ | 2.6 | $ | 2.2 | $ | — | $ | 0.1 | $ | — | ||||||||||||||||||||
Interest costs | 2.2 | 2 | 2.2 | 0.6 | 0.6 | 0.8 | ||||||||||||||||||||||||||
Expected return on plan assets | (10.1 | ) | (8.9 | ) | (8.2 | ) | — | — | — | |||||||||||||||||||||||
Amortization of prior service cost (credit) | 0.1 | — | — | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||||
Recognized net actuarial loss | — | 0.8 | 0.9 | 0.5 | 0.7 | 0.7 | ||||||||||||||||||||||||||
Benefit (income) costs | $ | (5.6 | ) | $ | (3.5 | ) | $ | (2.9 | ) | $ | 1 | $ | 1.3 | $ | 1.4 | |||||||||||||||||
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | ||||||||||||||||||||||||||||||||
AOCI at beginning of year | $ | 2.2 | $ | 20.3 | $ | 22.4 | $ | 5.8 | $ | 7.6 | $ | 7.1 | ||||||||||||||||||||
Net (gain) loss arising during the year | 13.1 | (17.3 | ) | (1.2 | ) | 1.8 | (1.2 | ) | 1.1 | |||||||||||||||||||||||
Recognition of prior service credit | — | — | — | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||
Recognition of actuarial loss | 0.4 | (0.8 | ) | (0.9 | ) | (0.5 | ) | (0.7 | ) | (0.7 | ) | |||||||||||||||||||||
Total recognized in accumulated other comprehensive loss at end of year | $ | 15.7 | $ | 2.2 | $ | 20.3 | $ | 7.2 | $ | 5.8 | $ | 7.6 | ||||||||||||||||||||
The estimated net loss, prior service cost and net transition obligation for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2015 are immaterial. | ||||||||||||||||||||||||||||||||
The estimated net loss and prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2015 is $0.2 million and $0.6 million, respectively. | ||||||||||||||||||||||||||||||||
Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years: | ||||||||||||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||||||||
Pension Benefits | Gross | Expected | Net including | |||||||||||||||||||||||||||||
Medicare Subsidy | Medicare Subsidy | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2015 | $ | 4.3 | $ | 1.7 | $ | 0.1 | $ | 1.6 | ||||||||||||||||||||||||
2016 | 4.2 | 1.6 | 0.1 | 1.5 | ||||||||||||||||||||||||||||
2017 | 4.3 | 1.6 | 0.1 | 1.5 | ||||||||||||||||||||||||||||
2018 | 4.3 | 1.5 | 0.1 | 1.4 | ||||||||||||||||||||||||||||
2019 | 4.3 | 1.4 | 0.1 | 1.3 | ||||||||||||||||||||||||||||
2020 to 2024 | 23.1 | 6 | 0.5 | 5.5 | ||||||||||||||||||||||||||||
The Company has a postretirement benefit plan. Under the plan, health care benefits are provided on both a contributory and noncontributory basis. The assumed health care cost trend rate has a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects: | ||||||||||||||||||||||||||||||||
1-Percentage | 1-Percentage | |||||||||||||||||||||||||||||||
Point | Point | |||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components in 2014 | $ | 0.1 | $ | — | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligation as of December 31, 2014 | $ | 1.5 | $ | (1.3 | ) | |||||||||||||||||||||||||||
The Company expects to have no contributions to its defined benefit plans in 2015. | ||||||||||||||||||||||||||||||||
In January 2008, a Supplemental Executive Retirement Plan (“SERP”) for the Company’s Chairman of the Board of Directors and Chief Executive Officer (“CEO”) was approved by the Compensation Committee of the Board of Directors of the Company. The SERP provides an annual supplemental retirement benefit for up to $0.4 million upon the CEO’s termination of employment with the Company. The vested retirement benefit will be equal to a percentage of the Supplemental Pension that is equal to the ratio of the sum of his credited service with the Company prior to January 1, 2008 (up to a maximum of thirteen years), and his credited service on or after January 1, 2008 (up to a maximum of seven years) to twenty years of credited service. In the event of a change in control before the CEO’s termination of employment, he will receive 100% of the Supplemental Pension. The Company recorded an expense of $0.5 million in 2014, 2013 and 2012 related to the SERP. Additionally, a non-qualified defined contribution retirement benefit was also approved in which the Company will credit $0.1 million quarterly ($0.4 million annually) for a seven-year period to an account in which the CEO will always be 100% vested. The seven-year period began on March 31, 2008. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) | |||||||||||
The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013, and 2012 were as follows: | ||||||||||||
Cumulative Translation Adjustment | Pension and Postretirement Benefits | Total | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, 2012 | $ | 4.7 | $ | (13.2 | ) | $ | (8.5 | ) | ||||
Foreign currency translation adjustments (a) | 0.6 | — | 0.6 | |||||||||
Recognition of actuarial gain, net (b) | — | 1.6 | 1.6 | |||||||||
Tax adjustment (c) | — | (0.6 | ) | (0.6 | ) | |||||||
Recognition of actuarial gain, net | — | 1 | 1 | |||||||||
Balance at December 31, 2012 | 5.3 | (12.2 | ) | (6.9 | ) | |||||||
Foreign currency translation adjustments (a) | (2.5 | ) | — | (2.5 | ) | |||||||
Recognition of actuarial gain, net (b) | — | 19.9 | 19.9 | |||||||||
Tax adjustment (c) | — | (7.1 | ) | (7.1 | ) | |||||||
Recognition of actuarial gain, net | — | 12.8 | 12.8 | |||||||||
Balance at December 31, 2013 | 2.8 | 0.6 | 3.4 | |||||||||
Foreign currency translation adjustments (a) | (7.9 | ) | — | (7.9 | ) | |||||||
Recognition of actuarial gain, net (b) | — | (14.9 | ) | (14.9 | ) | |||||||
Tax adjustment (c) | — | 5.4 | 5.4 | |||||||||
Recognition of actuarial gain, net | — | (9.5 | ) | (9.5 | ) | |||||||
Balance at December 31, 2014 | $ | (5.1 | ) | $ | (8.9 | ) | $ | (14.0 | ) | |||
(a) | No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. | |||||||||||
(b) | The recognition of actuarial gains are reclassified out of accumulated other comprehensive income and included in the computation of net periodic benefit cost in selling, general and administrative expenses. | |||||||||||
(c) | The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
On February 9, 2015, Holdings' Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend was paid on March 6, 2015, to shareholders of record as of the close of business on February 23, 2015 and resulted in a cash outlay of approximately $1.6 million. | |
On March 12, 2015, the Company amended its Credit Agreement to increase the revolving credit facility from $250.0 million to $275.0 million. |
Supplemental_Guarantor_Informa
Supplemental Guarantor Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | ||||||||||||||||||||
Supplemental Guarantor Information | Supplemental Guarantor Information | |||||||||||||||||||
Each of the material domestic direct and indirect wholly-owned subsidiaries of the Company (the “Guarantor Subsidiaries”) has fully and unconditionally guaranteed, on a joint and several basis, to pay principal, premium, and interest with respect to the Notes. Each of the Guarantor Subsidiaries is “100% owned,” as defined by Rule 3-10(h)(1) of Regulation S-X. | ||||||||||||||||||||
The guarantee of a Guarantor Subsidiary will automatically terminate, and the obligations of such Guarantor Subsidiary under its guarantee of Notes will be released: | ||||||||||||||||||||
(a) in the event of any sale or other disposition of all or substantially all of the assets or all of the capital stock of any Subsidiary Guarantor, by way of merger, consolidation or otherwise; | ||||||||||||||||||||
(b) upon designation of any Subsidiary Guarantor as an “unrestricted subsidiary” (as defined in the indenture governing the Notes (the “Indenture”)); | ||||||||||||||||||||
(c) upon defeasance or satisfaction and discharge of the Indenture; and | ||||||||||||||||||||
(d) upon the release of such Subsidiary Guarantor's guarantees under all credit facilities of the Company (other than a release as a result of payment under or a discharge of such guarantee). | ||||||||||||||||||||
Effective in the third quarter of 2013, Southwest Steel Processing (“SSP”) was released from its guarantee of the Notes in conjunction with its designation as an "Unrestricted Subsidiary" under the Indenture and the sale of 25% of its business. During the third quarter of 2013, all the outstanding equity interests of a non-core business unit in the Supply Technologies segment was sold and released as a guarantor of the Notes under customary conditions. As a result of the aforementioned releases from the guarantee of the Notes, all periods presented have been restated to reflect SSP and the disposed Supply Technologies business unit as non-guarantor subsidiaries. | ||||||||||||||||||||
The following supplemental condensed consolidating financial statements present condensed consolidating balance sheets as of December 31, 2014 and December 31, 2013, condensed consolidating statements of income for the years ended December 31, 2014, 2013 and 2012, condensed consolidating statements of cash flows for the years ended December 31, 2014, 2013 and 2012, and reclassification and elimination entries necessary to consolidate the Parent and all of its subsidiaries. The “Parent” reflected in the accompanying supplemental guarantor information is Park-Ohio Industries, Inc. | ||||||||||||||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent | Combined | Combined | Reclassifications/ | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | Eliminations | ||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3.8 | $ | 44.5 | $ | — | $ | 48.3 | ||||||||||
Accounts receivable, net | — | 148.3 | 59.7 | — | 208 | |||||||||||||||
Inventories, net | — | 176.2 | 62.2 | — | 238.4 | |||||||||||||||
Deferred tax assets | — | 27.4 | 0.7 | — | 28.1 | |||||||||||||||
Unbilled contract revenue | — | 18.1 | 8.7 | — | 26.8 | |||||||||||||||
Other current assets | 1.6 | 14.9 | 6 | — | 22.5 | |||||||||||||||
Total current assets | 1.6 | 388.7 | 181.8 | — | 572.1 | |||||||||||||||
Investment in subsidiaries | 451.8 | 162.6 | — | (614.4 | ) | — | ||||||||||||||
Intercompany advances | 249.5 | 86 | 161.2 | (496.7 | ) | — | ||||||||||||||
Net property, plant and equipment | 7.1 | 101.2 | 32.7 | — | 141 | |||||||||||||||
Goodwill | — | 56.6 | 32.9 | — | 89.5 | |||||||||||||||
Intangible assets, net | — | 74.6 | 13.5 | — | 88.1 | |||||||||||||||
Other long-term assets | 68 | 1.8 | 3.4 | — | 73.2 | |||||||||||||||
Total assets | $ | 778 | $ | 871.5 | $ | 425.5 | $ | (1,111.1 | ) | $ | 963.9 | |||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | 2.2 | $ | 120.4 | $ | 39.5 | $ | — | $ | 162.1 | ||||||||||
Payable to affiliates | — | — | 1.8 | — | 1.8 | |||||||||||||||
Accrued expenses and other | 18 | 52.1 | 33.6 | — | 103.7 | |||||||||||||||
Total current liabilities | 20.2 | 172.5 | 74.9 | — | 267.6 | |||||||||||||||
Long-term liabilities, less current portion: | ||||||||||||||||||||
Debt | 432.2 | 2 | 0.2 | — | 434.4 | |||||||||||||||
Deferred tax liabilities | — | 41.6 | 2.3 | — | 43.9 | |||||||||||||||
Other postretirement benefits and other long-term liabilities | 25.1 | 9 | 6 | — | 40.1 | |||||||||||||||
Total long-term liabilities | 457.3 | 52.6 | 8.5 | — | 518.4 | |||||||||||||||
Intercompany advances | 122.6 | 214.2 | 159.9 | (496.7 | ) | — | ||||||||||||||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 171.6 | 432.2 | 175.9 | (608.1 | ) | 171.6 | ||||||||||||||
Noncontrolling interest | 6.3 | — | 6.3 | (6.3 | ) | 6.3 | ||||||||||||||
Total shareholder's equity | 177.9 | 432.2 | 182.2 | (614.4 | ) | 177.9 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 778 | $ | 871.5 | $ | 425.5 | $ | (1,111.1 | ) | $ | 963.9 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Parent | Combined | Combined | Reclassifications/ | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | Eliminations | ||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 0.7 | $ | 43 | $ | — | $ | 43.7 | ||||||||||
Accounts receivable, net | — | 124 | 41.6 | — | 165.6 | |||||||||||||||
Inventories, net | — | 175.5 | 45.9 | — | 221.4 | |||||||||||||||
Deferred tax assets | — | 23.3 | 1.3 | — | 24.6 | |||||||||||||||
Unbilled contract revenue | — | 8.5 | 0.2 | — | 8.7 | |||||||||||||||
Other current assets | 0.7 | 16.1 | 5.1 | — | 21.9 | |||||||||||||||
Total current assets | 0.7 | 348.1 | 137.1 | — | 485.9 | |||||||||||||||
Investment in subsidiaries | 403.8 | 149.8 | — | (553.6 | ) | — | ||||||||||||||
Intercompany advances | 158.1 | 12 | 143 | (313.1 | ) | — | ||||||||||||||
Net property, plant and equipment | 5.8 | 93.3 | 15.4 | — | 114.5 | |||||||||||||||
Goodwill | — | 51.3 | 9.1 | — | 60.4 | |||||||||||||||
Intangible assets, net | — | 52.3 | 13.9 | — | 66.2 | |||||||||||||||
Other long-term assets | 77.1 | 2.7 | 0.6 | — | 80.4 | |||||||||||||||
Total assets | $ | 645.5 | $ | 709.5 | $ | 319.1 | $ | (866.7 | ) | $ | 807.4 | |||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | 1.3 | $ | 89.6 | $ | 22 | $ | — | $ | 112.9 | ||||||||||
Payable to affiliates | — | — | 1.6 | — | 1.6 | |||||||||||||||
Accrued expenses and other | 14.2 | 48.5 | 22.9 | — | 85.6 | |||||||||||||||
Total current liabilities | 15.5 | 138.1 | 46.5 | — | 200.1 | |||||||||||||||
Long-term liabilities, less current portion: | ||||||||||||||||||||
Debt | 376.2 | 2.6 | 0.4 | — | 379.2 | |||||||||||||||
Deferred tax liabilities | — | 42.8 | 2.5 | — | 45.3 | |||||||||||||||
Other postretirement benefits and other long-term liabilities | 23.6 | 7.6 | 1 | — | 32.2 | |||||||||||||||
Total long-term liabilities | 399.8 | 53 | 3.9 | — | 456.7 | |||||||||||||||
Intercompany advances | 79.6 | 129.3 | 104.2 | (313.1 | ) | — | ||||||||||||||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 145.6 | 389.1 | 159.5 | (548.6 | ) | 145.6 | ||||||||||||||
Noncontrolling interest | 5 | — | 5 | (5.0 | ) | 5 | ||||||||||||||
Total shareholder's equity | 150.6 | 389.1 | 164.5 | (553.6 | ) | 150.6 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 645.5 | $ | 709.5 | $ | 319.1 | $ | (866.7 | ) | $ | 807.4 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | — | $ | 1,103.00 | $ | 275.7 | $ | — | $ | 1,378.70 | ||||||||||
Cost of sales | — | 928.7 | 215.5 | — | 1,144.20 | |||||||||||||||
Gross profit | — | 174.3 | 60.2 | — | 234.5 | |||||||||||||||
Selling, general and administrative expenses | 26.2 | 74.7 | 34.7 | — | 135.6 | |||||||||||||||
Income (loss) from subsidiaries | 99.5 | 15.5 | — | (115.0 | ) | — | ||||||||||||||
Operating income (loss) | 73.3 | 115.1 | 25.5 | (115.0 | ) | 98.9 | ||||||||||||||
Interest expense | 25.7 | — | 0.4 | — | 26.1 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 47.6 | 115.1 | 25.1 | (115.0 | ) | 72.8 | ||||||||||||||
Income tax expense | — | 17.4 | 7.8 | — | 25.2 | |||||||||||||||
Net income (loss) from continuing operations | 47.6 | 97.7 | 17.3 | (115.0 | ) | 47.6 | ||||||||||||||
Net income (loss) | 47.6 | 97.7 | 17.3 | (115.0 | ) | 47.6 | ||||||||||||||
Net (income) loss attributable to noncontrolling interest | (1.3 | ) | — | (1.3 | ) | 1.3 | (1.3 | ) | ||||||||||||
Net income (loss) attributable to ParkOhio common shareholder | $ | 46.3 | $ | 97.7 | $ | 16 | $ | (113.7 | ) | $ | 46.3 | |||||||||
Other comprehensive income (loss) (see note 14): | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (7.9 | ) | $ | — | $ | (7.9 | ) | $ | 7.9 | $ | (7.9 | ) | |||||||
Recognition of actuarial loss (gain), net of tax | (9.5 | ) | (9.5 | ) | — | 9.5 | (9.5 | ) | ||||||||||||
Comprehensive income (loss), net of tax | 30.2 | 88.2 | 9.4 | (97.6 | ) | 30.2 | ||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (1.3 | ) | — | (1.3 | ) | 1.3 | (1.3 | ) | ||||||||||||
Comprehensive income (loss) attributable to ParkOhio common shareholder | $ | 28.9 | $ | 88.2 | $ | 8.1 | $ | (96.3 | ) | $ | 28.9 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | — | $ | 989 | $ | 214.2 | $ | — | $ | 1,203.20 | ||||||||||
Cost of sales | — | 819.7 | 172.5 | — | 992.2 | |||||||||||||||
Gross profit | — | 169.3 | 41.7 | — | 211 | |||||||||||||||
Selling, general and administrative expenses | 20.9 | 72.7 | 25.9 | — | 119.5 | |||||||||||||||
Litigation judgment and settlement costs | — | 5.2 | — | — | 5.2 | |||||||||||||||
Income (loss) from subsidiaries | 88.2 | 9.4 | — | (97.6 | ) | — | ||||||||||||||
Operating income (loss) | 67.3 | 100.8 | 15.8 | (97.6 | ) | 86.3 | ||||||||||||||
Gain on acquisition of business | — | (0.6 | ) | — | — | (0.6 | ) | |||||||||||||
Interest expense | 25.9 | 0.1 | (0.1 | ) | — | 25.9 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 41.4 | 101.3 | 15.9 | (97.6 | ) | 61 | ||||||||||||||
Income tax expense | — | 16.3 | 3.3 | — | 19.6 | |||||||||||||||
Net income (loss) from continuing operations | 41.4 | 85 | 12.6 | (97.6 | ) | 41.4 | ||||||||||||||
Income (loss) from discontinued operations, net of taxes | 3 | — | 3 | (3.0 | ) | 3 | ||||||||||||||
Net income (loss) | 44.4 | 85 | 15.6 | (100.6 | ) | 44.4 | ||||||||||||||
Net income attributable to noncontrolling interest | (0.5 | ) | — | (0.5 | ) | 0.5 | (0.5 | ) | ||||||||||||
Net income (loss) attributable to ParkOhio common shareholder | $ | 43.9 | $ | 85 | $ | 15.1 | $ | (100.1 | ) | $ | 43.9 | |||||||||
Other comprehensive income (loss) (see note 14): | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (2.5 | ) | $ | — | $ | (2.5 | ) | $ | 2.5 | $ | (2.5 | ) | |||||||
Recognition of actuarial loss (gain), net of tax | 12.8 | 12.8 | — | (12.8 | ) | 12.8 | ||||||||||||||
Comprehensive income (loss), net of tax | 54.7 | 97.8 | 13.1 | (110.9 | ) | 54.7 | ||||||||||||||
Comprehensive income attributable to noncontrolling interest | (0.5 | ) | — | (0.5 | ) | 0.5 | (0.5 | ) | ||||||||||||
Comprehensive income (loss) attributable to ParkOhio common shareholder | $ | 54.2 | $ | 97.8 | $ | 12.6 | $ | (110.4 | ) | $ | 54.2 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | — | $ | 934.7 | $ | 193.5 | $ | — | $ | 1,128.20 | ||||||||||
Cost of sales | — | 773.5 | 147.4 | — | 920.9 | |||||||||||||||
Gross profit | — | 161.2 | 46.1 | — | 207.3 | |||||||||||||||
Selling, general and administrative expenses | 16.9 | 73.8 | 21.7 | — | 112.4 | |||||||||||||||
Litigation judgment and settlement costs | — | 13 | — | — | 13 | |||||||||||||||
Income (loss) from subsidiaries | 77.8 | 15 | — | (92.8 | ) | — | ||||||||||||||
Operating income (loss) | 60.9 | 89.4 | 24.4 | (92.8 | ) | 81.9 | ||||||||||||||
Interest expense | 25.8 | — | 0.2 | — | 26 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 35.1 | 89.4 | 24.2 | (92.8 | ) | 55.9 | ||||||||||||||
Income tax expense (benefit) | — | 15.1 | 5.7 | — | 20.8 | |||||||||||||||
Net income (loss) from continuing operations | 35.1 | 74.3 | 18.5 | (92.8 | ) | 35.1 | ||||||||||||||
Income (loss) from discontinued operations, net of taxes | (2.4 | ) | — | (2.4 | ) | 2.4 | (2.4 | ) | ||||||||||||
Net income (loss) | 32.7 | 74.3 | 16.1 | (90.4 | ) | 32.7 | ||||||||||||||
Net income attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
Net income (loss) attributable to ParkOhio common shareholder | $ | 32.7 | $ | 74.3 | $ | 16.1 | $ | (90.4 | ) | $ | 32.7 | |||||||||
Other comprehensive income (loss) (see note 14): | ||||||||||||||||||||
Foreign currency translation adjustments | $ | 0.6 | $ | — | $ | 0.6 | $ | (0.6 | ) | $ | 0.6 | |||||||||
Recognition of actuarial (loss) gain, net of tax | 1 | 1 | — | (1.0 | ) | 1 | ||||||||||||||
Comprehensive income (loss), net of tax | 34.3 | 75.3 | 16.7 | (92.0 | ) | 34.3 | ||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
Comprehensive income (loss) attributable to ParkOhio common shareholder | $ | 34.3 | $ | 75.3 | $ | 16.7 | $ | (92.0 | ) | $ | 34.3 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided (used) by operating activities | $ | (21.2 | ) | $ | 89.8 | $ | 14.4 | $ | (27.1 | ) | $ | 55.9 | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Purchases of property, plant and equipment | (0.2 | ) | (8.3 | ) | (17.3 | ) | — | (25.8 | ) | |||||||||||
Proceeds from sale of property | — | 2.1 | — | — | 2.1 | |||||||||||||||
Business acquisition, net of cash acquired | — | (47.5 | ) | (25.2 | ) | — | (72.7 | ) | ||||||||||||
Net cash used by investing activities | (0.2 | ) | (53.7 | ) | (42.5 | ) | — | (96.4 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Intercompany account change | (30.7 | ) | (32.4 | ) | 36 | 27.1 | — | |||||||||||||
Proceeds from term loans and other debt | 14.1 | — | 0.1 | — | 14.2 | |||||||||||||||
Payments on term loans and other debt | (3.6 | ) | (0.6 | ) | (2.4 | ) | — | (6.6 | ) | |||||||||||
Proceeds from revolving credit facility | 50.3 | — | — | — | 50.3 | |||||||||||||||
Dividends paid to parent | (10.0 | ) | — | — | — | (10.0 | ) | |||||||||||||
Income tax effect of share-based compensation exercises and vesting | 1.3 | — | — | — | 1.3 | |||||||||||||||
Other | — | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||
Net cash (used) provided by financing activities | 21.4 | (33.0 | ) | 32.4 | 27.1 | 47.9 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | (2.8 | ) | — | (2.8 | ) | |||||||||||||
Increase in cash and cash equivalents | — | 3.1 | 1.5 | — | 4.6 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 0.7 | 43 | — | 43.7 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 3.8 | $ | 44.5 | $ | — | $ | 48.3 | ||||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided (used) by operating activities | $ | (38.1 | ) | $ | 81.8 | $ | 19.9 | $ | (3.9 | ) | $ | 59.7 | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Purchases of property, plant and equipment | (1.0 | ) | (23.8 | ) | (5.0 | ) | — | (29.8 | ) | |||||||||||
Proceeds from sale and leaseback transactions | — | 7.4 | — | — | 7.4 | |||||||||||||||
Proceeds from sale of assets | 13.5 | 0.7 | 13.5 | (13.5 | ) | 14.2 | ||||||||||||||
Business acquisition, net of cash acquired | — | (21.6 | ) | (24.2 | ) | — | (45.8 | ) | ||||||||||||
Net cash (used) provided by investing activities | 12.5 | (37.3 | ) | (15.7 | ) | (13.5 | ) | (54.0 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Intercompany account change | 30.3 | (43.6 | ) | (4.1 | ) | 17.4 | — | |||||||||||||
Payments on term loans and other debt | (3.6 | ) | (0.4 | ) | (0.2 | ) | — | (4.2 | ) | |||||||||||
Proceeds from revolving credit facility | 9.1 | — | — | — | 9.1 | |||||||||||||||
Dividends to parent | (10.7 | ) | — | — | — | (10.7 | ) | |||||||||||||
Income tax effect of share-based compensation exercises and vesting | 0.5 | — | — | — | 0.5 | |||||||||||||||
Net cash provided (used) by financing activities | 25.6 | (44.0 | ) | (4.3 | ) | 17.4 | (5.3 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | 0.9 | — | 0.9 | |||||||||||||||
Increase in cash and cash equivalents | — | 0.5 | 0.8 | — | 1.3 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 0.2 | 42.2 | — | 42.4 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.7 | $ | 43 | $ | — | $ | 43.7 | ||||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided (used) by operating activities | $ | (46.8 | ) | $ | 84.9 | $ | 16 | $ | 2.4 | $ | 56.5 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Purchases of property, plant and equipment | 0.9 | (25.2 | ) | (2.6 | ) | — | (26.9 | ) | ||||||||||||
Proceeds from sale and leaseback transactions | — | 5.9 | — | — | 5.9 | |||||||||||||||
Proceeds from sale of assets | — | 0.4 | — | — | 0.4 | |||||||||||||||
Proceeds from the bond redemption | — | (97.0 | ) | — | — | (97.0 | ) | |||||||||||||
Net cash (used) provided by investing activities | 0.9 | (115.9 | ) | (2.6 | ) | — | (117.6 | ) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Intercompany account change | 3.8 | 31.1 | (32.5 | ) | (2.4 | ) | — | |||||||||||||
Proceeds from term loans and other debt | 25 | 0.9 | — | — | 25.9 | |||||||||||||||
Payments on term loans and other debt | (2.6 | ) | (0.9 | ) | (0.2 | ) | — | (3.7 | ) | |||||||||||
Proceeds from revolving credit facility | 8.9 | — | — | — | 8.9 | |||||||||||||||
Dividends to parent | (1.5 | ) | — | — | — | (1.5 | ) | |||||||||||||
Distribution of capital to shareholder | — | — | — | — | — | |||||||||||||||
Bank debt issue costs | (0.9 | ) | — | — | — | (0.9 | ) | |||||||||||||
Income tax effect of suspended benefits from share-based compensation | 2.8 | — | — | — | 2.8 | |||||||||||||||
Income tax effect of share-based compensation exercises and vesting | 0.4 | — | — | — | 0.4 | |||||||||||||||
Capital contribution from parent | 10 | — | — | — | 10 | |||||||||||||||
Net cash provided (used) by financing activities | 45.9 | 31.1 | (32.7 | ) | (2.4 | ) | 41.9 | |||||||||||||
Effect of exchange rate changes on cash | — | — | 0.3 | — | 0.3 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 0.1 | (19.0 | ) | — | (18.9 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | 0.1 | 61.2 | — | 61.3 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.2 | $ | 42.2 | $ | — | $ | 42.4 | ||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts and Reserves | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Valuation and Qualifying Accounts and Reserves | Schedule II | |||||||||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||
Schedule II — Valuation and Qualifying Accounts and Reserves | ||||||||||||||||
Description | Balance at | Charged to | Deductions | Balance at | ||||||||||||
Beginning of | Costs and | and | End of | |||||||||||||
Period | Expenses | Other | Period | |||||||||||||
(In millions) | ||||||||||||||||
Year Ended December 31, 2014: | ||||||||||||||||
Allowances deducted from assets: | ||||||||||||||||
Trade receivable allowances | $ | 3.7 | $ | 0.3 | $ | 0.1 | (A) | $ | 4.1 | |||||||
Inventory obsolescence reserve | 28.4 | 8.4 | (6.9 | ) | (B) | 29.9 | ||||||||||
Tax valuation allowances | 2.6 | (1.1 | ) | 5.6 | (C) | 7.1 | ||||||||||
Year Ended December 31, 2013: | ||||||||||||||||
Allowances deducted from assets: | ||||||||||||||||
Trade receivable allowances | $ | 3.5 | $ | 1.8 | $ | (1.6 | ) | (A) | $ | 3.7 | ||||||
Inventory obsolescence reserve | 27.2 | 9.4 | (8.2 | ) | (B) | 28.4 | ||||||||||
Tax valuation allowances | 4.2 | (1.6 | ) | — | 2.6 | |||||||||||
Year Ended December 31, 2012: | ||||||||||||||||
Allowances deducted from assets: | ||||||||||||||||
Trade receivable allowances | $ | 5.5 | $ | 1.8 | $ | (3.8 | ) | (A) | $ | 3.5 | ||||||
Inventory obsolescence reserve | 24.9 | 11.6 | (9.3 | ) | (B) | 27.2 | ||||||||||
Tax valuation allowances | 4.4 | (0.2 | ) | — | 4.2 | |||||||||||
Note (A)- Uncollectable accounts written off, net of recoveries. | ||||||||||||||||
Note (B)- Amounts written off or payments incurred, net of acquired reserves. | ||||||||||||||||
Note (C)- Amounts accounted for under the acquisition method of accounting. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation: The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. In the ordinary course of business, the Company leases certain real properties owned by related parties as described in Note 12. Transactions with related parties are in the ordinary course of business and are not material to the Company’s financial position, results of operations or cash flows. |
Accounting Estimates | Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Inventories | Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment are carried at cost. Additions and associated interest costs are capitalized and expenditures for repairs and maintenance are charged to operations. Depreciation of fixed assets is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 50 years for buildings, and one to 20 years for machinery and equipment. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: We assess the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives, whenever events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future undiscounted cash flows to be generated by that asset, or, for identifiable intangibles with finite useful lives, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. We measure the amount of impairment of other long-lived assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair market value of the asset, which is generally determined, based on projected discounted future cash flows or appraised values. We classify long-lived assets to be disposed of other than by sale as held and used until they are disposed. |
Goodwill and Other Intangible Assets | Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other” (“ASC 350”), the Company does not amortize goodwill or indefinite-lived intangible assets recorded in connection with business acquisitions. |
Goodwill and indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. | |
Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets, compared to the fair value. In accordance with Accounting Standard Update (“ASU”) 2011-08, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step quantitative impairment test is unnecessary. | |
In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgments and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company-specific events and share price trends, and the assessment of whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. | |
If our qualitative assessment concludes that it is more likely than not that impairment exists then a quantitative assessment is required. In a quantitative assessment, we use an income approach and other valuation techniques to estimate the fair value of our reporting units. Absent an indication of fair value from a potential buyer or similar specific transactions, we believe that using this methodology provides reasonable estimates of a reporting unit’s fair value. The income approach is based on projected future debt-free cash flow that is discounted to present value using factors that consider the timing and risk of the future cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit’s expected long-term operating and cash flow performance. This approach also mitigates most of the impact of cyclical downturns that occur in the reporting unit’s industry. The income approach is based on a reporting unit’s projection of operating results and cash flows that is discounted using a weighted-average cost of capital. The projection is based upon our best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements based on management projections. There are inherent uncertainties, however, related to these factors and to our judgment in applying them to this analysis. Nonetheless, we believe that this method provides a reasonable approach to estimate the fair value of our reporting units. | |
The Company completed its annual goodwill impairment test for each year presented and confirmed no reporting unit was at risk of failing the impairment test for any periods presented herein. | |
Indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. In accordance with ASU 2011-08, an entity may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying value. The Company completed its annual indefinite-lived intangible impairment assessment. As a result of this analysis, we concluded that no impairment existed. | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments: Certain financial instruments are required to be recorded at fair value. The Company measures financial assets and liabilities at fair value in three levels of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: |
Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. | |
Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |
Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | |
Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 9) approximate fair value at December 31, 2014 and December 31, 2013. The fair values of long-term debt and pension plan assets are disclosed in Note 9 and Note 13, respectively. | |
The Company has not changed its valuation techniques for measuring fair value during 2014 and there were no transfers between levels during the periods presented. | |
Income Taxes | Income Taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and the tax bases of assets and liabilities and are measured using the current enacted tax rates. In determining these amounts, management determined the probability of realizing deferred tax assets, taking into consideration factors including historical operating results, cumulative earnings and losses, expectations of future earnings, taxable income and the extended period of time over which the postretirement benefits will be paid and accordingly records valuation allowances if, based on the weight of available evidence it is more likely than not that some portion or all of our deferred tax assets will not be realized as required by ASC 740, “Income Taxes” (“ASC 740”). |
Stock-Based Compensation | Stock-Based Compensation: The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period. |
Holdings grants share-based compensation awards to Industries' employees. In accordance with ASC 718, such costs are allocated to Industries. Under the provisions of the Company’s 1998 Long-Term Incentive Plan, as amended (“1998 Plan”), which is administered by the Compensation Committee of Holdings' Board of Directors, incentive stock options, non-statutory stock options, stock appreciation rights (“SARs”), restricted share units, performance shares or stock awards may be awarded to directors and all employees of the Company and its subsidiaries. Stock options will be exercisable in whole or in installments as may be determined provided that no options will be exercisable more than ten years from date of grant. The exercise price will be the fair market value at the date of grant. The aggregate number of shares of Holdings' common stock that may be awarded under the 1998 Plan is 3,700,000, all of which may be incentive stock options. No more than 500,000 shares shall be the subject of awards to any individual participant in any one calendar year. | |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue, other than from long-term contracts, when title is transferred to the customer, typically upon shipment. Revenue from long-term contracts (approximately 8% of consolidated revenue) is accounted for under the percentage of completion method, and recognized on the basis of the percentage each contract’s cost to date bears to the total estimated contract cost. Revenue earned on contracts in process that are in excess of billings, is classified in unbilled contract revenues in the accompanying consolidated balance sheets. Billings that are in excess of revenues earned on contracts in process are classified in accrued expenses in the accompanying balance sheets. |
Cost of Sales | Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. |
Shipping and Handling Costs | Shipping and Handling Costs: All shipping and handling costs are included in cost of sales in the Consolidated Statements of Income. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable are recorded at net realizable value. Accounts receivable are reduced by an allowance for amounts that may become uncollectable in the future. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history. During 2014 and 2013, we sold approximately $95.0 million and $75.4 million, respectively, of accounts receivable to mitigate accounts receivable concentration risk and to provide additional financing capacity. In compliance with ASC 860, “Transfers and Servicing”, sales of accounts receivable are reflected as a reduction of accounts receivable in the Consolidated Balance Sheets and the proceeds are included in the cash flows from operating activities in the Consolidated Statements of Cash flows. In 2014 and 2013, an expense in the amount of $0.5 million and $0.4 million, respectively, related to the discount on sale of accounts receivable is recorded in the Consolidated Statements of Income. |
Concentration of Credit Risk | Concentration of Credit Risk: The Company sells its products to customers in diversified industries. The Company performs ongoing credit evaluations of its customers’ financial condition but does not require collateral to support customer receivables. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. |
Environmental | Environmental: The Company accrues environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Costs that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company records a liability when environmental assessments and/or remedial efforts are probable and can be reasonably estimated. The estimated liability of the Company is not reduced for possible recoveries from insurance carriers. |
Legal Contingencies | Legal Contingencies: We are involved in a variety of claims, suits, investigations and administrative proceedings with respect to commercial, premises liability, product liability, employment and environmental matters arising from the ordinary course of business. We accrue reserves for legal contingencies, on an undiscounted basis, when it is probable that we have incurred a liability and we can reasonably estimate an amount. When a single amount cannot be reasonably estimated, but the cost can be estimated within a range, we accrue the minimum amount in the range. Based upon facts and information currently available, we believe the amounts reserved are adequate for such pending matters. We monitor the development of legal proceedings on a regular basis and will adjust our reserves when, and to the extent, additional information becomes available. |
Foreign Currency Translation | Foreign Currency Translation: The functional currency for a majority of subsidiaries outside the United States is the local currency. Financial statements for these subsidiaries are translated into U.S. dollars at year-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. The resulting translation adjustments are recorded in accumulated comprehensive income (loss) in shareholder's equity. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted |
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which raises the threshold for disposals to qualify as discontinued operations and requires new disclosures for discontinued operations and for individually material disposal transactions that do not meet the definition of a discontinued operation. The ASU is effective prospectively for reporting periods beginning with the first quarter of 2015. Early adoption is permitted for disposals that have not been previously reported in the financial statements. We believe the adoption of this ASU will have an insignificant effect on our consolidated financial statement as it only applies to future disposals. | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. generally accepted accounting principles and International Financial Reporting Standards. The issuance of a comprehensive and converged standard on revenue recognition is expected to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions, and geographies. The ASU will require additional disclosures to help financial statement users better understand the nature, amount, timing, and potential uncertainty of the revenue that is recognized. The ASU is effective for annual reporting periods beginning after December 15, 2016, and will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is currently evaluating the impact of adopting this guidance. | |
Reclassification | Reclassification: Certain amounts in the prior years' financial statements have been reclassified to conform to the current year presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Major Classes of Inventories | ||||||||
Major Classes of Inventories | December 31, 2014 | December 31, 2013 | ||||||
(In millions) | ||||||||
Finished goods | $ | 146 | $ | 124.1 | ||||
Work in process | 19.8 | 36 | ||||||
Raw materials and supplies | 72.6 | 61.3 | ||||||
Inventories, net | $ | 238.4 | $ | 221.4 | ||||
Other inventory items | ||||||||
Inventory reserves | $ | 29.9 | $ | 28.4 | ||||
Consigned Inventory | $ | 7.8 | $ | 6.6 | ||||
Property, Plant and Equipment | The following table summarizes property, plant and equipment at December 31, 2014 and December 31, 2013: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Property, plant and equipment: | ||||||||
Land and land improvements | $ | 7.1 | $ | 6.4 | ||||
Buildings | 70.9 | 60.7 | ||||||
Machinery and equipment | 288.7 | 256.7 | ||||||
Total property, plant and equipment | 366.7 | 323.8 | ||||||
Less accumulated depreciation | 225.7 | 209.3 | ||||||
Net property, plant and equipment | $ | 141 | $ | 114.5 | ||||
Segments_Tables
Segments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Results by business segment | Results by business segment were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Net sales: | ||||||||||||
Supply Technologies | $ | 559.6 | $ | 471.9 | $ | 483.8 | ||||||
Assembly Components | 490.5 | 412.8 | 304 | |||||||||
Engineered Products | 328.6 | 318.5 | 340.4 | |||||||||
$ | 1,378.70 | $ | 1,203.20 | $ | 1,128.20 | |||||||
Segment operating income: | ||||||||||||
Supply Technologies | $ | 42.5 | $ | 35 | $ | 37.5 | ||||||
Assembly Components | 42 | 31.8 | 19.9 | |||||||||
Engineered Products | 42.7 | 47.1 | 55 | |||||||||
Total segment operating income | 127.2 | 113.9 | 112.4 | |||||||||
Corporate costs | (28.3 | ) | (22.4 | ) | (17.5 | ) | ||||||
Litigation judgment and settlement costs | — | (5.2 | ) | (13.0 | ) | |||||||
Gain on acquisition of business | — | 0.6 | — | |||||||||
Interest expense | (26.1 | ) | (25.9 | ) | (26.0 | ) | ||||||
Income from continuing operations before income taxes | $ | 72.8 | $ | 61 | $ | 55.9 | ||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Identifiable assets: | ||||||||||||
Supply Technologies | $ | 277.6 | $ | 241.7 | $ | 207 | ||||||
Assembly Components | 340.5 | 276.7 | 230 | |||||||||
Engineered Products | 246.9 | 183.1 | 199.4 | |||||||||
General corporate | 98.9 | 105.9 | 86.4 | |||||||||
$ | 963.9 | $ | 807.4 | $ | 722.8 | |||||||
Depreciation and amortization expense: | ||||||||||||
Supply Technologies | $ | 4.5 | $ | 3 | $ | 3.9 | ||||||
Assembly Components | 14.2 | 11.6 | 9.5 | |||||||||
Engineered Products | 3.3 | 3.4 | 3.2 | |||||||||
General corporate | 0.4 | 0.5 | 0.9 | |||||||||
$ | 22.4 | $ | 18.5 | $ | 17.5 | |||||||
Capital expenditures: | ||||||||||||
Supply Technologies | $ | 5.8 | $ | 3.8 | $ | 1.6 | ||||||
Assembly Components | 14 | 21.5 | 22.1 | |||||||||
Engineered Products | 2.4 | 3.6 | 3.1 | |||||||||
General corporate | 1.5 | 0.9 | 0.1 | |||||||||
$ | 23.7 | $ | 29.8 | $ | 26.9 | |||||||
The percentage of net sales by product line included in each segment was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Supply Technologies: | ||||||||||||
Supply Technologies | 88 | % | 87 | % | 88 | % | ||||||
Engineered specialty products | 12 | % | 13 | % | 12 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Assembly Components: | ||||||||||||
Fluid routing | 49 | % | 54 | % | 50 | % | ||||||
Aluminum products | 43 | % | 37 | % | 39 | % | ||||||
Rubber and plastics | 6 | % | 7 | % | 9 | % | ||||||
Screw products | 2 | % | 2 | % | 2 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Engineered Products: | ||||||||||||
Industrial equipment business | 78 | % | 77 | % | 80 | % | ||||||
Forged and machined products | 22 | % | 23 | % | 20 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
The Company’s approximate percentage of net sales by geographic region was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | 74 | % | 74 | % | 77 | % | ||||||
Canada | 7 | % | 8 | % | 8 | % | ||||||
Europe | 6 | % | 5 | % | 4 | % | ||||||
Asia | 6 | % | 6 | % | 6 | % | ||||||
Mexico | 5 | % | 5 | % | 4 | % | ||||||
Other | 2 | % | 2 | % | 1 | % | ||||||
100 | % | 100 | % | 100 | % |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Business Combinations [Abstract] | ||||
Allocation of purchase price | Based on management’s valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions, the final purchase price is allocated as follows: | |||
(In millions) | ||||
Cash and cash equivalents | $ | 2.8 | ||
Accounts receivable | 30.9 | |||
Inventories | 12.4 | |||
Prepaid expenses and other current assets | 2.7 | |||
Property, plant and equipment | 30.2 | |||
Customer relationships | 29.4 | |||
Trademarks and trade name | 11.5 | |||
Other assets | 0.2 | |||
Accounts payable | (17.8 | ) | ||
Accrued expenses | (15.6 | ) | ||
Deferred tax liability | (26.4 | ) | ||
Other long-term liabilities | (0.8 | ) | ||
Goodwill | 39.3 | |||
Total purchase price | $ | 98.8 | ||
Pro forma information | The following unaudited pro forma information is provided to present a summary of the combined results of the Company’s operations with FRS as if the acquisition had occurred on January 1, 2011. The unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed at the date indicated above. | |||
Year Ended December 31, | ||||
2012 | ||||
(In millions) | ||||
Pro forma revenues | $ | 1,179.10 | ||
Pro forma net income | $ | 39.1 | ||
Dispositions_Tables
Dispositions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||
Schedule of Select Financial Information Included in Discontinued Operations | The financial position of the discontinued operation was not significant. Select financial information included in discontinued operations were as follows: | |||||||
Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Net sales | $ | 5.2 | $ | 5.8 | ||||
Loss from discontinued operations before tax | $ | (1.3 | ) | $ | (4.0 | ) | ||
Income tax benefit from operations | 0.5 | 1.6 | ||||||
Net loss from discontinued operations | (0.8 | ) | (2.4 | ) | ||||
Gain on sale of business before tax | 5.3 | — | ||||||
Income tax expense from gain on sale of business | (1.5 | ) | — | |||||
Net gain on sale of business | 3.8 | — | ||||||
Income (loss) from discontinued operations, net of taxes | $ | 3 | $ | (2.4 | ) | |||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of goodwill | The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||||||
Supply Technologies | Assembly Components | Engineered Products | Total | |||||||||||||
(In millions) | ||||||||||||||||
Balance at January 1, 2012 | $ | — | $ | 4.6 | $ | 4.9 | $ | 9.5 | ||||||||
Acquisitions | — | 40.2 | — | 40.2 | ||||||||||||
Balance at December 31, 2012 | — | 44.8 | 4.9 | 49.7 | ||||||||||||
Acquisitions | 6.2 | 4.2 | — | 10.4 | ||||||||||||
Foreign currency translation | 0.2 | — | 0.1 | 0.3 | ||||||||||||
Balance at December 31, 2013 | 6.4 | 49 | 5 | 60.4 | ||||||||||||
Acquisitions | 0.7 | 5 | 23.2 | 28.9 | ||||||||||||
Foreign currency translation | 0.5 | — | (0.3 | ) | 0.2 | |||||||||||
Balance at December 31, 2014 | $ | 7.6 | $ | 54 | $ | 27.9 | $ | 89.5 | ||||||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Schedule of other intangible assets | Information regarding other intangible assets as of December 31, 2014 and December 31, 2013 follows: | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Weighted Average Useful Life | Acquisition | Accumulated | Net | Acquisition | Accumulated | Net | ||||||||||||||||||||
Costs | Amortization | Costs | Amortization | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Non-contractual customer relationships | 11.9 years | $ | 77.3 | $ | 13.2 | $ | 64.1 | $ | 61.1 | $ | 8.7 | $ | 52.4 | |||||||||||||
Indefinite-lived tradenames | * | 14 | * | 14 | 11.7 | * | 11.7 | |||||||||||||||||||
Other | 17.5 years | 12.3 | 2.3 | 10 | 3.9 | 1.8 | 2.1 | |||||||||||||||||||
Total | $ | 103.6 | $ | 15.5 | $ | 88.1 | $ | 76.7 | $ | 10.5 | $ | 66.2 | ||||||||||||||
* Not meaningful, tradenames have an indefinite life. | ||||||||||||||||||||||||||
Schedule of amortization of intangible assets | Information regarding amortization expense of other intangible assets follows: | |||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Amortization expense | $ | 4.8 | $ | 3.5 | $ | 2.5 | ||||||||||||||||||||
Amortization for the next five years | Amortization expense for the five years subsequent to December 31, 2014 follows: | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
2015 | $ | 6.5 | ||||||||||||||||||||||||
2016 | $ | 6.4 | ||||||||||||||||||||||||
2017 | $ | 6.4 | ||||||||||||||||||||||||
2018 | $ | 6.2 | ||||||||||||||||||||||||
2019 | $ | 5.8 | ||||||||||||||||||||||||
Other_LongTerm_Assets_Tables
Other Long-Term Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||
Other long-term assets | Other assets consist of the following: | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
(In millions) | ||||||||
Pension assets | $ | 64.6 | $ | 73.3 | ||||
Deferred financing costs, net | 5.1 | 5.7 | ||||||
Other | 3.5 | 1.4 | ||||||
Total | $ | 73.2 | $ | 80.4 | ||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Payables and Accruals [Abstract] | ||||||||||||
Accrued expenses | Accrued expenses and other current liabilities consist of the following: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Accrued salaries, wages and benefits | $ | 25.4 | $ | 22.2 | ||||||||
Advance billings | 28.4 | 20.4 | ||||||||||
Current portion of long-term debt | 9.4 | 4.4 | ||||||||||
Warranty accrual | 6.9 | 5.4 | ||||||||||
Interest payable | 5.2 | 5.6 | ||||||||||
Current portion of other post-retirement liabilities | 1.6 | 1.7 | ||||||||||
Taxes, income and other | — | 2.9 | ||||||||||
Other | 26.8 | 23 | ||||||||||
Total | $ | 103.7 | $ | 85.6 | ||||||||
Changes in product warranty liability | The following table presents the changes in the Company’s product warranty liability for the years ended December 31, 2014, 2013, and 2012: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, | $ | 5.4 | $ | 6.9 | $ | 4.2 | ||||||
Claims paid during the year | (2.9 | ) | (6.4 | ) | (6.0 | ) | ||||||
Warranty expense | 4 | 4.9 | 5.4 | |||||||||
Acquired warranty liabilities | 0.4 | — | 3.3 | |||||||||
Balance at December 31, | $ | 6.9 | $ | 5.4 | $ | 6.9 | ||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of Long-term debt | Long-term debt consists of the following: | |||||||||||||||
Carrying Value at | ||||||||||||||||
Issuance Date | Maturity Date | Interest Rate at December 31, 2014 | December 31, 2014 | December 31, 2013 | ||||||||||||
(In millions) | ||||||||||||||||
Senior Notes | 1-Apr-11 | 1-Apr-21 | 8.125 | % | $ | 250 | $ | 250 | ||||||||
Revolving credit | — | 31-Jul-19 | 1.69 | % | 162 | 111 | ||||||||||
Term loan | — | 31-Jul-19 | 2.25 | % | 28.8 | 18.7 | ||||||||||
Other | Various | Various | Various | 3 | 3.9 | |||||||||||
Total debt | 443.8 | 383.6 | ||||||||||||||
Less current maturities | 9.4 | 4.4 | ||||||||||||||
Total long-term debt, net of current portion | $ | 434.4 | $ | 379.2 | ||||||||||||
Fair Value of Debt | The following table represents fair value information of the Notes, classified as Level 1, at December 31, 2014 and December 31, 2013. The fair value was estimated using quoted market prices. | |||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||
(In millions) | ||||||||||||||||
Carrying amount | $ | 250 | $ | 250 | ||||||||||||
Fair value | $ | 266.3 | $ | 275.6 | ||||||||||||
Maturities of Long-term Debt | Maturities of long-term debt during each of the five years subsequent to December 31, 2014 follow: | |||||||||||||||
(In millions) | ||||||||||||||||
2015 | $ | 9.4 | ||||||||||||||
2016 | $ | 12.2 | ||||||||||||||
2017 | $ | 12.1 | ||||||||||||||
2018 | $ | 6.5 | ||||||||||||||
2019 | $ | 153.6 | ||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income from continuing operations before income tax expense | Income from continuing operations before income tax expense consists of the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
United States | $ | 54.3 | $ | 49.3 | $ | 40.6 | ||||||
Outside the United States | 18.5 | 11.7 | 15.3 | |||||||||
$ | 72.8 | $ | 61 | $ | 55.9 | |||||||
Income taxes | Income taxes consisted of the following: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Current expense: | ||||||||||||
Federal | $ | 17.6 | $ | 16 | $ | 7.5 | ||||||
State | 0.8 | 1.5 | 0.9 | |||||||||
Foreign | 6.2 | 4.2 | 4.4 | |||||||||
24.6 | 21.7 | 12.8 | ||||||||||
Deferred expense (benefit): | ||||||||||||
Federal | 1.1 | 1.4 | 7.9 | |||||||||
State | (0.8 | ) | (2.6 | ) | (0.2 | ) | ||||||
Foreign | 0.3 | (0.9 | ) | 0.3 | ||||||||
0.6 | (2.1 | ) | 8 | |||||||||
Income tax expense | $ | 25.2 | $ | 19.6 | $ | 20.8 | ||||||
Reconciliation between federal statutory tax rate and effective tax rates | The reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
Rate Reconciliation | 2014 | 2013 | 2012 | |||||||||
(In millions) | ||||||||||||
Tax at statutory rate | $ | 25.4 | $ | 21.3 | $ | 19.7 | ||||||
Effect of state income taxes, net | 1.4 | 1.1 | 1 | |||||||||
Effect of foreign operations | (0.9 | ) | (0.2 | ) | (0.1 | ) | ||||||
Valuation allowance | (1.1 | ) | (1.6 | ) | (0.2 | ) | ||||||
Non-deductible items | 1.8 | 0.7 | 0.6 | |||||||||
Manufacturer's deduction | (1.4 | ) | (1.4 | ) | (0.6 | ) | ||||||
Other, net | — | (0.3 | ) | 0.4 | ||||||||
Total | $ | 25.2 | $ | 19.6 | $ | 20.8 | ||||||
Significant components of the Company's net deferred tax assets and liabilities | Significant components of the Company’s net deferred tax assets and liabilities are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | |||||||||||
(In millions) | ||||||||||||
Deferred tax assets: | ||||||||||||
Postretirement benefit obligation | $ | 6.2 | $ | 5.9 | ||||||||
Inventory | 13.7 | 13.2 | ||||||||||
Net operating loss and credit carryforwards | 6.3 | 3.8 | ||||||||||
Goodwill | 1 | 0.5 | ||||||||||
Warranty reserve | 2.5 | 2.1 | ||||||||||
Compensation | 6 | 4.3 | ||||||||||
Other | 10.7 | 10.1 | ||||||||||
Total deferred tax assets | 46.4 | 39.9 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | 13.2 | 11.7 | ||||||||||
Pension | 23.3 | 26.4 | ||||||||||
Goodwill | 2.7 | 2.7 | ||||||||||
Intangible assets | 14.5 | 15.4 | ||||||||||
Other | 1.4 | 1.8 | ||||||||||
Total deferred tax liabilities | 55.1 | 58 | ||||||||||
Net deferred tax liabilities prior to valuation allowances | (8.7 | ) | (18.1 | ) | ||||||||
Valuation allowances | (7.1 | ) | (2.6 | ) | ||||||||
Net deferred tax liability | $ | (15.8 | ) | $ | (20.7 | ) | ||||||
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(In millions) | ||||||||||||
Unrecognized Tax Benefit — January 1, | $ | 5.9 | $ | 6.1 | $ | 6 | ||||||
Gross Increases — Tax Positions in Prior Period | 0.8 | 0.4 | 0.1 | |||||||||
Gross Decreases — Tax Positions in Prior Period | (0.2 | ) | (0.6 | ) | — | |||||||
Gross Increases — Tax Positions in Current Period | — | — | 0.1 | |||||||||
Lapse of Statute of Limitations | — | — | (0.1 | ) | ||||||||
Unrecognized Tax Benefit — December 31, | $ | 6.5 | $ | 5.9 | $ | 6.1 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Schedule of Stock Option Activity | A summary of Holdings' stock option activity as of December 31, 2014 and changes during the year then ended is presented below: | |||||||||||||
2014 | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(In whole shares) | (In millions) | |||||||||||||
Outstanding — beginning of year | 146,000 | $ | 16.71 | |||||||||||
Granted | — | — | ||||||||||||
Exercised | (2,500 | ) | 14.12 | |||||||||||
Canceled or expired | — | — | ||||||||||||
Outstanding — end of year | 143,500 | $ | 16.76 | 1.7 years | $ | 6.6 | ||||||||
Options exercisable | 143,500 | $ | 16.76 | 1.7 years | $ | 6.6 | ||||||||
Summary of Restricted Share Activity | A summary of Holdings' restricted share and performance share activity for the year ended December 31, 2014 is as follows: | |||||||||||||
2014 | ||||||||||||||
Time-Based | Performance-Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
(In whole shares) | (In whole shares) | |||||||||||||
Outstanding — beginning of year | 422,898 | $ | 21.04 | 42,000 | $ | 20.3 | ||||||||
Granted | 137,750 | 57.04 | — | — | ||||||||||
Vested | (211,048 | ) | 23.71 | (14,000 | ) | 20.3 | ||||||||
Canceled or expired | (4,668 | ) | 38.19 | — | — | |||||||||
Outstanding — end of year | 344,932 | $ | 33.55 | 28,000 | $ | 20.3 | ||||||||
Commitments_Contingencies_and_1
Commitments, Contingencies and Litigation Judgment (Tables) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Future minimum lease commitments | Future minimum lease commitments during each of the five years following December 31, 2014 and thereafter are as follows: | |||
(In millions) | ||||
2015 | $ | 14.8 | ||
2016 | $ | 12.7 | ||
2017 | $ | 9.9 | ||
2018 | $ | 6.1 | ||
2019 | $ | 2.9 | ||
Thereafter | $ | 2.3 | ||
Pensions_and_Postretirement_Be1
Pensions and Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Change in benefit obligation, plan assets, and funded status | The following tables set forth the change in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 52.1 | $ | 56.4 | $ | 16.2 | $ | 18.5 | ||||||||||||||||||||||||
Service cost | 2.2 | 2.6 | — | 0.1 | ||||||||||||||||||||||||||||
Interest cost | 2.2 | 2 | 0.6 | 0.6 | ||||||||||||||||||||||||||||
Actuarial (gains) losses | 8.8 | (4.4 | ) | 1.9 | (1.3 | ) | ||||||||||||||||||||||||||
Plan amendment | 0.4 | — | — | — | ||||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.6 | ) | (4.5 | ) | (1.7 | ) | (1.7 | ) | ||||||||||||||||||||||||
Benefit obligation at end of year | $ | 61.1 | $ | 52.1 | $ | 17 | $ | 16.2 | ||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 125.4 | $ | 109.4 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 5.8 | 21.8 | — | — | ||||||||||||||||||||||||||||
Company contributions | — | — | 1.7 | 1.7 | ||||||||||||||||||||||||||||
Cash transfer to fund postretirement benefit payments | (0.9 | ) | (1.3 | ) | — | — | ||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.6 | ) | (4.5 | ) | (1.7 | ) | (1.7 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 125.7 | $ | 125.4 | $ | — | $ | — | ||||||||||||||||||||||||
Funded (underfunded) status of the plans | $ | 64.6 | $ | 73.3 | $ | (17.0 | ) | $ | (16.2 | ) | ||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets | Amounts recognized in the consolidated balance sheets consist of: | |||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | 64.6 | $ | 73.3 | $ | — | $ | — | ||||||||||||||||||||||||
Noncurrent liabilities | — | — | 15.4 | 14.5 | ||||||||||||||||||||||||||||
Current liabilities | — | — | 1.6 | 1.7 | ||||||||||||||||||||||||||||
$ | 64.6 | $ | 73.3 | $ | 17 | $ | 16.2 | |||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 15.3 | $ | 2.1 | $ | 7.6 | $ | 6.3 | ||||||||||||||||||||||||
Net prior service cost (credit) | 0.4 | 0.1 | (0.4 | ) | (0.5 | ) | ||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | 15.7 | $ | 2.2 | $ | 7.2 | $ | 5.8 | ||||||||||||||||||||||||
Allocation of assets, and fair value hierarchy | The pension plan weighted-average asset allocation at December 31, 2014 and 2013 and target allocation for 2015 are as follows: | |||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||
Target 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Equity securities | 45-75% | 64.6 | % | 67.2 | % | |||||||||||||||||||||||||||
Debt securities | 10-40 | 27.9 | % | 25.4 | % | |||||||||||||||||||||||||||
Other | 0-20 | 7.5 | % | 7.4 | % | |||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | |||||||||||||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans assets: | ||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Collective trust and pooled insurance funds: | ||||||||||||||||||||||||||||||||
Common stock | $ | 45.6 | $ | 2.2 | $ | — | $ | 47.8 | $ | 48.3 | $ | 2.5 | $ | — | $ | 50.8 | ||||||||||||||||
Equity Funds | 26.9 | — | — | 26.9 | 26.9 | — | — | 26.9 | ||||||||||||||||||||||||
Foreign Stock | 5.4 | — | — | 5.4 | 5.6 | — | — | 5.6 | ||||||||||||||||||||||||
U.S. Government obligations | 7 | — | — | 7 | 5.1 | — | — | 5.1 | ||||||||||||||||||||||||
Fixed income funds | 19.6 | — | — | 19.6 | 18.8 | — | — | 18.8 | ||||||||||||||||||||||||
Balanced funds | 2.1 | — | — | 2.1 | 2.1 | — | — | 2.1 | ||||||||||||||||||||||||
Corporate Bonds | 7.5 | — | — | 7.5 | 6.8 | — | — | 6.8 | ||||||||||||||||||||||||
Cash and Cash Equivalents | 1.8 | — | — | 1.8 | 2 | — | — | 2 | ||||||||||||||||||||||||
Hedge funds | — | — | 7.6 | 7.6 | — | — | 7.3 | 7.3 | ||||||||||||||||||||||||
$ | 115.9 | $ | 2.2 | $ | 7.6 | $ | 125.7 | $ | 115.6 | $ | 2.5 | $ | 7.3 | $ | 125.4 | |||||||||||||||||
Reconciliation of Level 3 assets | The following table presents a reconciliation of Level 3 assets, as defined in Note 1, held during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||||
Balance at | Net Unrealized | Purchases | Balance at | |||||||||||||||||||||||||||||
Beginning of Year | Gain | End of Year | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Hedge Funds: | ||||||||||||||||||||||||||||||||
2014 | $ | 7.3 | $ | 0.3 | $ | — | $ | 7.6 | ||||||||||||||||||||||||
2013 | $ | 6.4 | $ | 0.9 | $ | — | $ | 7.3 | ||||||||||||||||||||||||
Assumptions used in valuation | The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31, and to measure the net periodic benefit cost in the following year. | |||||||||||||||||||||||||||||||
Weighted-Average assumptions as of December 31, | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Discount rate | 3.82 | % | 4.51 | % | 3.66 | % | 3.6 | % | 4.21 | % | 3.35 | % | ||||||||||||||||||||
Expected return on plan assets | 8.25 | % | 8.25 | % | 8.25 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Rate of compensation increase | 3 | % | 2 | % | 2 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Medical health care benefits rate increase | N/A | N/A | N/A | 7 | % | 6.5 | % | 7 | % | |||||||||||||||||||||||
Medical drug benefits rate increase | N/A | N/A | N/A | 7 | % | 6.5 | % | 7.25 | % | |||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||
Year of ultimate trend rate | N/A | N/A | N/A | 2022 | 2042 | 2042 | ||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||
Service costs | $ | 2.2 | $ | 2.6 | $ | 2.2 | $ | — | $ | 0.1 | $ | — | ||||||||||||||||||||
Interest costs | 2.2 | 2 | 2.2 | 0.6 | 0.6 | 0.8 | ||||||||||||||||||||||||||
Expected return on plan assets | (10.1 | ) | (8.9 | ) | (8.2 | ) | — | — | — | |||||||||||||||||||||||
Amortization of prior service cost (credit) | 0.1 | — | — | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||||
Recognized net actuarial loss | — | 0.8 | 0.9 | 0.5 | 0.7 | 0.7 | ||||||||||||||||||||||||||
Benefit (income) costs | $ | (5.6 | ) | $ | (3.5 | ) | $ | (2.9 | ) | $ | 1 | $ | 1.3 | $ | 1.4 | |||||||||||||||||
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | ||||||||||||||||||||||||||||||||
AOCI at beginning of year | $ | 2.2 | $ | 20.3 | $ | 22.4 | $ | 5.8 | $ | 7.6 | $ | 7.1 | ||||||||||||||||||||
Net (gain) loss arising during the year | 13.1 | (17.3 | ) | (1.2 | ) | 1.8 | (1.2 | ) | 1.1 | |||||||||||||||||||||||
Recognition of prior service credit | — | — | — | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||
Recognition of actuarial loss | 0.4 | (0.8 | ) | (0.9 | ) | (0.5 | ) | (0.7 | ) | (0.7 | ) | |||||||||||||||||||||
Total recognized in accumulated other comprehensive loss at end of year | $ | 15.7 | $ | 2.2 | $ | 20.3 | $ | 7.2 | $ | 5.8 | $ | 7.6 | ||||||||||||||||||||
Expected future benefit payments | Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years: | |||||||||||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||||||||
Pension Benefits | Gross | Expected | Net including | |||||||||||||||||||||||||||||
Medicare Subsidy | Medicare Subsidy | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2015 | $ | 4.3 | $ | 1.7 | $ | 0.1 | $ | 1.6 | ||||||||||||||||||||||||
2016 | 4.2 | 1.6 | 0.1 | 1.5 | ||||||||||||||||||||||||||||
2017 | 4.3 | 1.6 | 0.1 | 1.5 | ||||||||||||||||||||||||||||
2018 | 4.3 | 1.5 | 0.1 | 1.4 | ||||||||||||||||||||||||||||
2019 | 4.3 | 1.4 | 0.1 | 1.3 | ||||||||||||||||||||||||||||
2020 to 2024 | 23.1 | 6 | 0.5 | 5.5 | ||||||||||||||||||||||||||||
Effect of one-percentage-point change in assumed health care cost trend rate | A one-percentage-point change in the assumed health care cost trend rate would have the following effects: | |||||||||||||||||||||||||||||||
1-Percentage | 1-Percentage | |||||||||||||||||||||||||||||||
Point | Point | |||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components in 2014 | $ | 0.1 | $ | — | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligation as of December 31, 2014 | $ | 1.5 | $ | (1.3 | ) | |||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity [Abstract] | ||||||||||||
Changes in accumulated other comprehensive income (loss) | The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013, and 2012 were as follows: | |||||||||||
Cumulative Translation Adjustment | Pension and Postretirement Benefits | Total | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, 2012 | $ | 4.7 | $ | (13.2 | ) | $ | (8.5 | ) | ||||
Foreign currency translation adjustments (a) | 0.6 | — | 0.6 | |||||||||
Recognition of actuarial gain, net (b) | — | 1.6 | 1.6 | |||||||||
Tax adjustment (c) | — | (0.6 | ) | (0.6 | ) | |||||||
Recognition of actuarial gain, net | — | 1 | 1 | |||||||||
Balance at December 31, 2012 | 5.3 | (12.2 | ) | (6.9 | ) | |||||||
Foreign currency translation adjustments (a) | (2.5 | ) | — | (2.5 | ) | |||||||
Recognition of actuarial gain, net (b) | — | 19.9 | 19.9 | |||||||||
Tax adjustment (c) | — | (7.1 | ) | (7.1 | ) | |||||||
Recognition of actuarial gain, net | — | 12.8 | 12.8 | |||||||||
Balance at December 31, 2013 | 2.8 | 0.6 | 3.4 | |||||||||
Foreign currency translation adjustments (a) | (7.9 | ) | — | (7.9 | ) | |||||||
Recognition of actuarial gain, net (b) | — | (14.9 | ) | (14.9 | ) | |||||||
Tax adjustment (c) | — | 5.4 | 5.4 | |||||||||
Recognition of actuarial gain, net | — | (9.5 | ) | (9.5 | ) | |||||||
Balance at December 31, 2014 | $ | (5.1 | ) | $ | (8.9 | ) | $ | (14.0 | ) | |||
(a) | No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. | |||||||||||
(b) | The recognition of actuarial gains are reclassified out of accumulated other comprehensive income and included in the computation of net periodic benefit cost in selling, general and administrative expenses. | |||||||||||
(c) | The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. |
Supplemental_Guarantor_Informa1
Supplemental Guarantor Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Supplemental Guarantor Information [Abstract] | ||||||||||||||||||||
Condensed consolidating balance sheet | Park-Ohio Industries, Inc. and Subsidiaries | |||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Parent | Combined | Combined | Reclassifications/ | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | Eliminations | ||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3.8 | $ | 44.5 | $ | — | $ | 48.3 | ||||||||||
Accounts receivable, net | — | 148.3 | 59.7 | — | 208 | |||||||||||||||
Inventories, net | — | 176.2 | 62.2 | — | 238.4 | |||||||||||||||
Deferred tax assets | — | 27.4 | 0.7 | — | 28.1 | |||||||||||||||
Unbilled contract revenue | — | 18.1 | 8.7 | — | 26.8 | |||||||||||||||
Other current assets | 1.6 | 14.9 | 6 | — | 22.5 | |||||||||||||||
Total current assets | 1.6 | 388.7 | 181.8 | — | 572.1 | |||||||||||||||
Investment in subsidiaries | 451.8 | 162.6 | — | (614.4 | ) | — | ||||||||||||||
Intercompany advances | 249.5 | 86 | 161.2 | (496.7 | ) | — | ||||||||||||||
Net property, plant and equipment | 7.1 | 101.2 | 32.7 | — | 141 | |||||||||||||||
Goodwill | — | 56.6 | 32.9 | — | 89.5 | |||||||||||||||
Intangible assets, net | — | 74.6 | 13.5 | — | 88.1 | |||||||||||||||
Other long-term assets | 68 | 1.8 | 3.4 | — | 73.2 | |||||||||||||||
Total assets | $ | 778 | $ | 871.5 | $ | 425.5 | $ | (1,111.1 | ) | $ | 963.9 | |||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | 2.2 | $ | 120.4 | $ | 39.5 | $ | — | $ | 162.1 | ||||||||||
Payable to affiliates | — | — | 1.8 | — | 1.8 | |||||||||||||||
Accrued expenses and other | 18 | 52.1 | 33.6 | — | 103.7 | |||||||||||||||
Total current liabilities | 20.2 | 172.5 | 74.9 | — | 267.6 | |||||||||||||||
Long-term liabilities, less current portion: | ||||||||||||||||||||
Debt | 432.2 | 2 | 0.2 | — | 434.4 | |||||||||||||||
Deferred tax liabilities | — | 41.6 | 2.3 | — | 43.9 | |||||||||||||||
Other postretirement benefits and other long-term liabilities | 25.1 | 9 | 6 | — | 40.1 | |||||||||||||||
Total long-term liabilities | 457.3 | 52.6 | 8.5 | — | 518.4 | |||||||||||||||
Intercompany advances | 122.6 | 214.2 | 159.9 | (496.7 | ) | — | ||||||||||||||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 171.6 | 432.2 | 175.9 | (608.1 | ) | 171.6 | ||||||||||||||
Noncontrolling interest | 6.3 | — | 6.3 | (6.3 | ) | 6.3 | ||||||||||||||
Total shareholder's equity | 177.9 | 432.2 | 182.2 | (614.4 | ) | 177.9 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 778 | $ | 871.5 | $ | 425.5 | $ | (1,111.1 | ) | $ | 963.9 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Parent | Combined | Combined | Reclassifications/ | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | Eliminations | ||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 0.7 | $ | 43 | $ | — | $ | 43.7 | ||||||||||
Accounts receivable, net | — | 124 | 41.6 | — | 165.6 | |||||||||||||||
Inventories, net | — | 175.5 | 45.9 | — | 221.4 | |||||||||||||||
Deferred tax assets | — | 23.3 | 1.3 | — | 24.6 | |||||||||||||||
Unbilled contract revenue | — | 8.5 | 0.2 | — | 8.7 | |||||||||||||||
Other current assets | 0.7 | 16.1 | 5.1 | — | 21.9 | |||||||||||||||
Total current assets | 0.7 | 348.1 | 137.1 | — | 485.9 | |||||||||||||||
Investment in subsidiaries | 403.8 | 149.8 | — | (553.6 | ) | — | ||||||||||||||
Intercompany advances | 158.1 | 12 | 143 | (313.1 | ) | — | ||||||||||||||
Net property, plant and equipment | 5.8 | 93.3 | 15.4 | — | 114.5 | |||||||||||||||
Goodwill | — | 51.3 | 9.1 | — | 60.4 | |||||||||||||||
Intangible assets, net | — | 52.3 | 13.9 | — | 66.2 | |||||||||||||||
Other long-term assets | 77.1 | 2.7 | 0.6 | — | 80.4 | |||||||||||||||
Total assets | $ | 645.5 | $ | 709.5 | $ | 319.1 | $ | (866.7 | ) | $ | 807.4 | |||||||||
LIABILITIES AND SHAREHOLDER'S EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Trade accounts payable | $ | 1.3 | $ | 89.6 | $ | 22 | $ | — | $ | 112.9 | ||||||||||
Payable to affiliates | — | — | 1.6 | — | 1.6 | |||||||||||||||
Accrued expenses and other | 14.2 | 48.5 | 22.9 | — | 85.6 | |||||||||||||||
Total current liabilities | 15.5 | 138.1 | 46.5 | — | 200.1 | |||||||||||||||
Long-term liabilities, less current portion: | ||||||||||||||||||||
Debt | 376.2 | 2.6 | 0.4 | — | 379.2 | |||||||||||||||
Deferred tax liabilities | — | 42.8 | 2.5 | — | 45.3 | |||||||||||||||
Other postretirement benefits and other long-term liabilities | 23.6 | 7.6 | 1 | — | 32.2 | |||||||||||||||
Total long-term liabilities | 399.8 | 53 | 3.9 | — | 456.7 | |||||||||||||||
Intercompany advances | 79.6 | 129.3 | 104.2 | (313.1 | ) | — | ||||||||||||||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 145.6 | 389.1 | 159.5 | (548.6 | ) | 145.6 | ||||||||||||||
Noncontrolling interest | 5 | — | 5 | (5.0 | ) | 5 | ||||||||||||||
Total shareholder's equity | 150.6 | 389.1 | 164.5 | (553.6 | ) | 150.6 | ||||||||||||||
Total liabilities and shareholder’s equity | $ | 645.5 | $ | 709.5 | $ | 319.1 | $ | (866.7 | ) | $ | 807.4 | |||||||||
Consolidating statement of operations | Park-Ohio Industries, Inc. and Subsidiaries | |||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | — | $ | 1,103.00 | $ | 275.7 | $ | — | $ | 1,378.70 | ||||||||||
Cost of sales | — | 928.7 | 215.5 | — | 1,144.20 | |||||||||||||||
Gross profit | — | 174.3 | 60.2 | — | 234.5 | |||||||||||||||
Selling, general and administrative expenses | 26.2 | 74.7 | 34.7 | — | 135.6 | |||||||||||||||
Income (loss) from subsidiaries | 99.5 | 15.5 | — | (115.0 | ) | — | ||||||||||||||
Operating income (loss) | 73.3 | 115.1 | 25.5 | (115.0 | ) | 98.9 | ||||||||||||||
Interest expense | 25.7 | — | 0.4 | — | 26.1 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 47.6 | 115.1 | 25.1 | (115.0 | ) | 72.8 | ||||||||||||||
Income tax expense | — | 17.4 | 7.8 | — | 25.2 | |||||||||||||||
Net income (loss) from continuing operations | 47.6 | 97.7 | 17.3 | (115.0 | ) | 47.6 | ||||||||||||||
Net income (loss) | 47.6 | 97.7 | 17.3 | (115.0 | ) | 47.6 | ||||||||||||||
Net (income) loss attributable to noncontrolling interest | (1.3 | ) | — | (1.3 | ) | 1.3 | (1.3 | ) | ||||||||||||
Net income (loss) attributable to ParkOhio common shareholder | $ | 46.3 | $ | 97.7 | $ | 16 | $ | (113.7 | ) | $ | 46.3 | |||||||||
Other comprehensive income (loss) (see note 14): | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (7.9 | ) | $ | — | $ | (7.9 | ) | $ | 7.9 | $ | (7.9 | ) | |||||||
Recognition of actuarial loss (gain), net of tax | (9.5 | ) | (9.5 | ) | — | 9.5 | (9.5 | ) | ||||||||||||
Comprehensive income (loss), net of tax | 30.2 | 88.2 | 9.4 | (97.6 | ) | 30.2 | ||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (1.3 | ) | — | (1.3 | ) | 1.3 | (1.3 | ) | ||||||||||||
Comprehensive income (loss) attributable to ParkOhio common shareholder | $ | 28.9 | $ | 88.2 | $ | 8.1 | $ | (96.3 | ) | $ | 28.9 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | — | $ | 989 | $ | 214.2 | $ | — | $ | 1,203.20 | ||||||||||
Cost of sales | — | 819.7 | 172.5 | — | 992.2 | |||||||||||||||
Gross profit | — | 169.3 | 41.7 | — | 211 | |||||||||||||||
Selling, general and administrative expenses | 20.9 | 72.7 | 25.9 | — | 119.5 | |||||||||||||||
Litigation judgment and settlement costs | — | 5.2 | — | — | 5.2 | |||||||||||||||
Income (loss) from subsidiaries | 88.2 | 9.4 | — | (97.6 | ) | — | ||||||||||||||
Operating income (loss) | 67.3 | 100.8 | 15.8 | (97.6 | ) | 86.3 | ||||||||||||||
Gain on acquisition of business | — | (0.6 | ) | — | — | (0.6 | ) | |||||||||||||
Interest expense | 25.9 | 0.1 | (0.1 | ) | — | 25.9 | ||||||||||||||
Income (loss) from continuing operations before income taxes | 41.4 | 101.3 | 15.9 | (97.6 | ) | 61 | ||||||||||||||
Income tax expense | — | 16.3 | 3.3 | — | 19.6 | |||||||||||||||
Net income (loss) from continuing operations | 41.4 | 85 | 12.6 | (97.6 | ) | 41.4 | ||||||||||||||
Income (loss) from discontinued operations, net of taxes | 3 | — | 3 | (3.0 | ) | 3 | ||||||||||||||
Net income (loss) | 44.4 | 85 | 15.6 | (100.6 | ) | 44.4 | ||||||||||||||
Net income attributable to noncontrolling interest | (0.5 | ) | — | (0.5 | ) | 0.5 | (0.5 | ) | ||||||||||||
Net income (loss) attributable to ParkOhio common shareholder | $ | 43.9 | $ | 85 | $ | 15.1 | $ | (100.1 | ) | $ | 43.9 | |||||||||
Other comprehensive income (loss) (see note 14): | ||||||||||||||||||||
Foreign currency translation adjustments | $ | (2.5 | ) | $ | — | $ | (2.5 | ) | $ | 2.5 | $ | (2.5 | ) | |||||||
Recognition of actuarial loss (gain), net of tax | 12.8 | 12.8 | — | (12.8 | ) | 12.8 | ||||||||||||||
Comprehensive income (loss), net of tax | 54.7 | 97.8 | 13.1 | (110.9 | ) | 54.7 | ||||||||||||||
Comprehensive income attributable to noncontrolling interest | (0.5 | ) | — | (0.5 | ) | 0.5 | (0.5 | ) | ||||||||||||
Comprehensive income (loss) attributable to ParkOhio common shareholder | $ | 54.2 | $ | 97.8 | $ | 12.6 | $ | (110.4 | ) | $ | 54.2 | |||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Income | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
Net sales | $ | — | $ | 934.7 | $ | 193.5 | $ | — | $ | 1,128.20 | ||||||||||
Cost of sales | — | 773.5 | 147.4 | — | 920.9 | |||||||||||||||
Gross profit | — | 161.2 | 46.1 | — | 207.3 | |||||||||||||||
Selling, general and administrative expenses | 16.9 | 73.8 | 21.7 | — | 112.4 | |||||||||||||||
Litigation judgment and settlement costs | — | 13 | — | — | 13 | |||||||||||||||
Income (loss) from subsidiaries | 77.8 | 15 | — | (92.8 | ) | — | ||||||||||||||
Operating income (loss) | 60.9 | 89.4 | 24.4 | (92.8 | ) | 81.9 | ||||||||||||||
Interest expense | 25.8 | — | 0.2 | — | 26 | |||||||||||||||
Income (loss) from continuing operations before income taxes | 35.1 | 89.4 | 24.2 | (92.8 | ) | 55.9 | ||||||||||||||
Income tax expense (benefit) | — | 15.1 | 5.7 | — | 20.8 | |||||||||||||||
Net income (loss) from continuing operations | 35.1 | 74.3 | 18.5 | (92.8 | ) | 35.1 | ||||||||||||||
Income (loss) from discontinued operations, net of taxes | (2.4 | ) | — | (2.4 | ) | 2.4 | (2.4 | ) | ||||||||||||
Net income (loss) | 32.7 | 74.3 | 16.1 | (90.4 | ) | 32.7 | ||||||||||||||
Net income attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
Net income (loss) attributable to ParkOhio common shareholder | $ | 32.7 | $ | 74.3 | $ | 16.1 | $ | (90.4 | ) | $ | 32.7 | |||||||||
Other comprehensive income (loss) (see note 14): | ||||||||||||||||||||
Foreign currency translation adjustments | $ | 0.6 | $ | — | $ | 0.6 | $ | (0.6 | ) | $ | 0.6 | |||||||||
Recognition of actuarial (loss) gain, net of tax | 1 | 1 | — | (1.0 | ) | 1 | ||||||||||||||
Comprehensive income (loss), net of tax | 34.3 | 75.3 | 16.7 | (92.0 | ) | 34.3 | ||||||||||||||
Comprehensive income attributable to noncontrolling interest | — | — | — | — | — | |||||||||||||||
Comprehensive income (loss) attributable to ParkOhio common shareholder | $ | 34.3 | $ | 75.3 | $ | 16.7 | $ | (92.0 | ) | $ | 34.3 | |||||||||
Condensed consolidating statement of cash flows | Park-Ohio Industries, Inc. and Subsidiaries | |||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided (used) by operating activities | $ | (21.2 | ) | $ | 89.8 | $ | 14.4 | $ | (27.1 | ) | $ | 55.9 | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Purchases of property, plant and equipment | (0.2 | ) | (8.3 | ) | (17.3 | ) | — | (25.8 | ) | |||||||||||
Proceeds from sale of property | — | 2.1 | — | — | 2.1 | |||||||||||||||
Business acquisition, net of cash acquired | — | (47.5 | ) | (25.2 | ) | — | (72.7 | ) | ||||||||||||
Net cash used by investing activities | (0.2 | ) | (53.7 | ) | (42.5 | ) | — | (96.4 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Intercompany account change | (30.7 | ) | (32.4 | ) | 36 | 27.1 | — | |||||||||||||
Proceeds from term loans and other debt | 14.1 | — | 0.1 | — | 14.2 | |||||||||||||||
Payments on term loans and other debt | (3.6 | ) | (0.6 | ) | (2.4 | ) | — | (6.6 | ) | |||||||||||
Proceeds from revolving credit facility | 50.3 | — | — | — | 50.3 | |||||||||||||||
Dividends paid to parent | (10.0 | ) | — | — | — | (10.0 | ) | |||||||||||||
Income tax effect of share-based compensation exercises and vesting | 1.3 | — | — | — | 1.3 | |||||||||||||||
Other | — | — | (1.3 | ) | — | (1.3 | ) | |||||||||||||
Net cash (used) provided by financing activities | 21.4 | (33.0 | ) | 32.4 | 27.1 | 47.9 | ||||||||||||||
Effect of exchange rate changes on cash | — | — | (2.8 | ) | — | (2.8 | ) | |||||||||||||
Increase in cash and cash equivalents | — | 3.1 | 1.5 | — | 4.6 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 0.7 | 43 | — | 43.7 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 3.8 | $ | 44.5 | $ | — | $ | 48.3 | ||||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided (used) by operating activities | $ | (38.1 | ) | $ | 81.8 | $ | 19.9 | $ | (3.9 | ) | $ | 59.7 | ||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Purchases of property, plant and equipment | (1.0 | ) | (23.8 | ) | (5.0 | ) | — | (29.8 | ) | |||||||||||
Proceeds from sale and leaseback transactions | — | 7.4 | — | — | 7.4 | |||||||||||||||
Proceeds from sale of assets | 13.5 | 0.7 | 13.5 | (13.5 | ) | 14.2 | ||||||||||||||
Business acquisition, net of cash acquired | — | (21.6 | ) | (24.2 | ) | — | (45.8 | ) | ||||||||||||
Net cash (used) provided by investing activities | 12.5 | (37.3 | ) | (15.7 | ) | (13.5 | ) | (54.0 | ) | |||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Intercompany account change | 30.3 | (43.6 | ) | (4.1 | ) | 17.4 | — | |||||||||||||
Payments on term loans and other debt | (3.6 | ) | (0.4 | ) | (0.2 | ) | — | (4.2 | ) | |||||||||||
Proceeds from revolving credit facility | 9.1 | — | — | — | 9.1 | |||||||||||||||
Dividends to parent | (10.7 | ) | — | — | — | (10.7 | ) | |||||||||||||
Income tax effect of share-based compensation exercises and vesting | 0.5 | — | — | — | 0.5 | |||||||||||||||
Net cash provided (used) by financing activities | 25.6 | (44.0 | ) | (4.3 | ) | 17.4 | (5.3 | ) | ||||||||||||
Effect of exchange rate changes on cash | — | — | 0.9 | — | 0.9 | |||||||||||||||
Increase in cash and cash equivalents | — | 0.5 | 0.8 | — | 1.3 | |||||||||||||||
Cash and cash equivalents at beginning of period | — | 0.2 | 42.2 | — | 42.4 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.7 | $ | 43 | $ | — | $ | 43.7 | ||||||||||
Park-Ohio Industries, Inc. and Subsidiaries | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Parent | Combined | Combined | Eliminations | Consolidated | ||||||||||||||||
Guarantor | Non-Guarantor | |||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||
(In millions) | ||||||||||||||||||||
OPERATING ACTIVITIES | ||||||||||||||||||||
Net cash provided (used) by operating activities | $ | (46.8 | ) | $ | 84.9 | $ | 16 | $ | 2.4 | $ | 56.5 | |||||||||
INVESTING ACTIVITIES | ||||||||||||||||||||
Purchases of property, plant and equipment | 0.9 | (25.2 | ) | (2.6 | ) | — | (26.9 | ) | ||||||||||||
Proceeds from sale and leaseback transactions | — | 5.9 | — | — | 5.9 | |||||||||||||||
Proceeds from sale of assets | — | 0.4 | — | — | 0.4 | |||||||||||||||
Proceeds from the bond redemption | — | (97.0 | ) | — | — | (97.0 | ) | |||||||||||||
Net cash (used) provided by investing activities | 0.9 | (115.9 | ) | (2.6 | ) | — | (117.6 | ) | ||||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||||
Intercompany account change | 3.8 | 31.1 | (32.5 | ) | (2.4 | ) | — | |||||||||||||
Proceeds from term loans and other debt | 25 | 0.9 | — | — | 25.9 | |||||||||||||||
Payments on term loans and other debt | (2.6 | ) | (0.9 | ) | (0.2 | ) | — | (3.7 | ) | |||||||||||
Proceeds from revolving credit facility | 8.9 | — | — | — | 8.9 | |||||||||||||||
Dividends to parent | (1.5 | ) | — | — | — | (1.5 | ) | |||||||||||||
Distribution of capital to shareholder | — | — | — | — | — | |||||||||||||||
Bank debt issue costs | (0.9 | ) | — | — | — | (0.9 | ) | |||||||||||||
Income tax effect of suspended benefits from share-based compensation | 2.8 | — | — | — | 2.8 | |||||||||||||||
Income tax effect of share-based compensation exercises and vesting | 0.4 | — | — | — | 0.4 | |||||||||||||||
Capital contribution from parent | 10 | — | — | — | 10 | |||||||||||||||
Net cash provided (used) by financing activities | 45.9 | 31.1 | (32.7 | ) | (2.4 | ) | 41.9 | |||||||||||||
Effect of exchange rate changes on cash | — | — | 0.3 | — | 0.3 | |||||||||||||||
Increase (decrease) in cash and cash equivalents | — | 0.1 | (19.0 | ) | — | (18.9 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | — | 0.1 | 61.2 | — | 61.3 | |||||||||||||||
Cash and cash equivalents at end of period | $ | — | $ | 0.2 | $ | 42.2 | $ | — | $ | 42.4 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Textual) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 |
Customer | |||
Line of Credit Facility [Line Items] | |||
Percentage of revenue from long-term contracts | 8.00% | 8.00% | |
Sale of accounts receivable | $95 | $75.40 | |
Discount on sale of accounts receivable | -0.5 | -0.4 | |
Number of customers in the automotive industry | 6 | ||
Aggregate amount trade accounts receivable | 37.7 | 37.7 | |
Percentage of trade accounts receivable | 18.00% | ||
Amount of net sales | 252.6 | ||
Percentage of net sales | 18.00% | 18.00% | |
Minimum [Member] | Building [Member] | |||
Line of Credit Facility [Line Items] | |||
Estimated useful lives | 5 years | ||
Minimum [Member] | Machinery and equipment [Member] | |||
Line of Credit Facility [Line Items] | |||
Estimated useful lives | 1 year | ||
Maximum [Member] | Building [Member] | |||
Line of Credit Facility [Line Items] | |||
Estimated useful lives | 50 years | ||
Maximum [Member] | Machinery and equipment [Member] | |||
Line of Credit Facility [Line Items] | |||
Estimated useful lives | 20 years | ||
1998 Long-Term Incentive Plan [Member] | |||
Line of Credit Facility [Line Items] | |||
Common stock that may be awarded (in shares) | 3,700,000 | 3,700,000 | |
Number of shares that may be awarded to any individual participant in any one calendar year (no more than) (in shares) | 500,000 | 500,000 | |
Stock options [Member] | 1998 Long-Term Incentive Plan [Member] | |||
Line of Credit Facility [Line Items] | |||
Expiration term | 10 years | ||
Chief Executive Officer [Member] | Purchase of Real Estate [Member] | |||
Line of Credit Facility [Line Items] | |||
Purchase of real estate from related party | $1.80 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Schedule of Major Classes of Inventories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Major Classes of Inventories | ||
Finished goods | $146 | $124.10 |
Work in process | 19.8 | 36 |
Raw materials and supplies | 72.6 | 61.3 |
Inventories, net | 238.4 | 221.4 |
Other inventory items | ||
Inventory reserves | 29.9 | 28.4 |
Consigned Inventory | $7.80 | $6.60 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Schedule of Property, Plant and Equipment) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $366.70 | $323.80 |
Less accumulated depreciation | 225.7 | 209.3 |
Net property, plant and equipment | 141 | 114.5 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 7.1 | 6.4 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 70.9 | 60.7 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $288.70 | $256.70 |
Segments_Textual_Details
Segments (Textual) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment | |||
Segment Reporting [Abstract] | |||
Number of reportable segments | 3 | ||
Percentage of assets | 72.00% | 77.00% | 81.00% |
Segments_Schedule_of_Segment_I
Segments (Schedule of Segment Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales: | ||||
Net sales | $1,378.70 | $1,203.20 | $1,128.20 | |
Segment operating income: | ||||
Segment operating income | 98.9 | 86.3 | 81.9 | |
Corporate costs | -28.3 | -22.4 | -17.5 | |
Litigation judgment and settlement costs | 0 | -5.2 | -13 | |
Gain on acquisition of business | 0.6 | 0 | 0.6 | 0 |
Interest expense | -26.1 | -25.9 | -26 | |
Income from continuing operations before income taxes | 72.8 | 61 | 55.9 | |
Identifiable assets: | ||||
Identifiable assets | 963.9 | 807.4 | 722.8 | |
Depreciation and amortization | 22.4 | 18.5 | 17.5 | |
Capital expenditures | 23.7 | 29.8 | 26.9 | |
Percentage of net sales | 100.00% | 100.00% | 100.00% | |
Supply Technologies [Member] | ||||
Net sales: | ||||
Net sales | 559.6 | 471.9 | 483.8 | |
Segment operating income: | ||||
Segment operating income | 42.5 | 35 | 37.5 | |
Identifiable assets: | ||||
Identifiable assets | 277.6 | 241.7 | 207 | |
Depreciation and amortization | 4.5 | 3 | 3.9 | |
Capital expenditures | 5.8 | 3.8 | 1.6 | |
Percentage of net sales | 100.00% | 100.00% | 100.00% | |
Assembly Components [Member] | ||||
Net sales: | ||||
Net sales | 490.5 | 412.8 | 304 | |
Segment operating income: | ||||
Segment operating income | 42 | 31.8 | 19.9 | |
Identifiable assets: | ||||
Identifiable assets | 340.5 | 276.7 | 230 | |
Depreciation and amortization | 14.2 | 11.6 | 9.5 | |
Capital expenditures | 14 | 21.5 | 22.1 | |
Percentage of net sales | 100.00% | 100.00% | 100.00% | |
Engineered Products [Member] | ||||
Net sales: | ||||
Net sales | 328.6 | 318.5 | 340.4 | |
Segment operating income: | ||||
Segment operating income | 42.7 | 47.1 | 55 | |
Identifiable assets: | ||||
Identifiable assets | 246.9 | 183.1 | 199.4 | |
Depreciation and amortization | 3.3 | 3.4 | 3.2 | |
Capital expenditures | 2.4 | 3.6 | 3.1 | |
Percentage of net sales | 100.00% | 100.00% | 100.00% | |
General corporate [Member] | ||||
Identifiable assets: | ||||
Identifiable assets | 98.9 | 105.9 | 86.4 | |
Depreciation and amortization | 0.4 | 0.5 | 0.9 | |
Capital expenditures | 1.5 | 0.9 | 0.1 | |
Operating Segments [Member] | ||||
Segment operating income: | ||||
Segment operating income | $127.20 | $113.90 | $112.40 | |
Supply Technologies Product [Member] | Supply Technologies [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 88.00% | 87.00% | 88.00% | |
Engineered Specialty Products [Member] | Supply Technologies [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 12.00% | 13.00% | 12.00% | |
Fluid Routing [Member] | Assembly Components [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 49.00% | 54.00% | 50.00% | |
Aluminum Primary Products [Member] | Assembly Components [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 43.00% | 37.00% | 39.00% | |
Rubber And Plastics [Member] | Assembly Components [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 6.00% | 7.00% | 9.00% | |
Screw Products [Member] | Assembly Components [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 2.00% | 2.00% | 2.00% | |
Capital Equipment [Member] | Engineered Products [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 78.00% | 77.00% | 80.00% | |
Forged and Machined Products [Member] | Engineered Products [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 22.00% | 23.00% | 20.00% | |
United States [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 74.00% | 74.00% | 77.00% | |
Canada [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 7.00% | 8.00% | 8.00% | |
Europe [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 6.00% | 5.00% | 4.00% | |
Asia [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 6.00% | 6.00% | 6.00% | |
Mexico [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 5.00% | 5.00% | 4.00% | |
Other [Member] | ||||
Identifiable assets: | ||||
Percentage of net sales | 2.00% | 2.00% | 1.00% |
Acquisitions_Textual_Details
Acquisitions (Textual) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 2 Months Ended | 0 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Oct. 31, 2014 | Jun. 30, 2014 | Nov. 30, 2013 | Apr. 26, 2013 | Nov. 30, 2012 | Mar. 23, 2012 | Dec. 31, 2012 | Mar. 31, 2014 | Nov. 30, 2013 | Dec. 31, 2011 |
location | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | $72.70 | $45.80 | $97 | ||||||||||||
Goodwill | 89.5 | 60.4 | 49.7 | 89.5 | 49.7 | 9.5 | |||||||||
Gain on acquisition of business | 0.6 | 0 | 0.6 | 0 | |||||||||||
Saet S.p.A [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | 22.1 | ||||||||||||||
Goodwill | 23.2 | 23.2 | |||||||||||||
Autoform Tool and Manufacturing [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | 48.9 | ||||||||||||||
Apollo Aerospace Group [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | 6.5 | ||||||||||||||
Contingent consideration, fair value of earn-out | 2.4 | ||||||||||||||
Contingent consideration, measurement period | 2 years | ||||||||||||||
Contingent consideration | 1.1 | ||||||||||||||
Autoform and Apollo [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Goodwill | 5.7 | 5.7 | |||||||||||||
QEF Global Limited and Henry Halstead Ltd [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | 24.2 | ||||||||||||||
Goodwill | 7.9 | 7.9 | |||||||||||||
Bates Rubber [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | 20.8 | ||||||||||||||
Goodwill | 5 | ||||||||||||||
Elastomeros Tecnicos Moldeados Inc [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | 1.1 | ||||||||||||||
Goodwill | 0.9 | ||||||||||||||
Business acquisition, promissory notes payable | 0.5 | ||||||||||||||
Annual payment due in each of the next four years if certain earnings levels achieved | 0.1 | ||||||||||||||
Fluid Routing Solutions Holding Corp [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Payments for acquisitions, net of cash acquired | 40 | ||||||||||||||
Goodwill | 39.3 | ||||||||||||||
Gross acquisition consideration | 98.8 | ||||||||||||||
Number of production facilities held by acquiree | 5 | ||||||||||||||
Revenues attributable to acquisition | 152.4 | ||||||||||||||
Net income attributable to acquisition | 7.1 | ||||||||||||||
Fluid Routing Solutions Holding Corp [Member] | Term loan [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Funding of acquisition, liabilities incurred | 25 | ||||||||||||||
Term loan, period | 7 years | ||||||||||||||
Fluid Routing Solutions Holding Corp [Member] | Revolving credit facility [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Funding of acquisition, liabilities incurred | 33.8 | ||||||||||||||
Saet S.p.A [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Revenues | 35.9 | ||||||||||||||
Autoform Tool and Manufacturing [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Revenues | 36.8 | ||||||||||||||
Apollo Aerospace Group [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Revenues | 8.1 | ||||||||||||||
QEF Global Limited [Member] | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||||||||||||
Revenues | $14 | ||||||||||||||
Number of locations | 4 |
Acquisitions_Preliminary_Purch
Acquisitions (Preliminary Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 23, 2012 |
In Millions, unless otherwise specified | |||||
Allocation of purchase price | |||||
Goodwill | $89.50 | $60.40 | $49.70 | $9.50 | |
Fluid Routing Solutions Holding Corp [Member] | |||||
Allocation of purchase price | |||||
Cash and cash equivalents | 2.8 | ||||
Accounts receivable | 30.9 | ||||
Inventories | 12.4 | ||||
Prepaid expenses and other current assets | 2.7 | ||||
Property, plant and equipment | 30.2 | ||||
Customer relationships | 29.4 | ||||
Trademarks and trade name | 11.5 | ||||
Other assets | 0.2 | ||||
Accounts payable | -17.8 | ||||
Accrued expenses | -15.6 | ||||
Deferred tax liability | -26.4 | ||||
Other long-term liabilities | -0.8 | ||||
Goodwill | 39.3 | ||||
Total purchase price | $98.80 |
Acquisitions_Pro_Forma_Informa
Acquisitions (Pro Forma Information) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Pro forma information of Acquisition | |
Pro forma revenues | $1,179.10 |
Pro forma net income | $39.10 |
Dispositions_Details
Dispositions (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2013 | Sep. 03, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Senior notes, interest rate | 8.13% | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Income (loss) from discontinued operations, net of taxes | $0 | $3 | ($2.40) | ||
Southwest Steel Processing LLC [Member] | |||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Sale of noncontrolling interest, percentage | 25.00% | ||||
Proceeds from sale of noncontrolling interest | 5 | ||||
Discontinued Operations [Member] | Non-core Business Unit [Member] | Supply Technologies [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from sale of non-core business unit | 8.5 | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |||||
Net sales | 5.2 | 5.8 | |||
Loss from discontinued operations before tax | -1.3 | -4 | |||
Income tax benefit from operations | 0.5 | 1.6 | |||
Net loss from discontinued operations | -0.8 | -2.4 | |||
Gain on sale of business before tax | 5.3 | 0 | |||
Income tax expense from gain on sale of business | -1.5 | 0 | |||
Net gain on sale of business | 3.8 | 0 | |||
Income (loss) from discontinued operations, net of taxes | $3 | ($2.40) |
Goodwill_Change_in_Goodwill_De
Goodwill (Change in Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $60.40 | $49.70 | $9.50 |
Acquisitions | 28.9 | 10.4 | 40.2 |
Foreign currency translation | 0.2 | 0.3 | |
Balance, end of period | 89.5 | 60.4 | 49.7 |
Supply Technologies [Member] | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 6.4 | 0 | 0 |
Acquisitions | 0.7 | 6.2 | 0 |
Foreign currency translation | 0.5 | 0.2 | |
Balance, end of period | 7.6 | 6.4 | 0 |
Assembly Components [Member] | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 49 | 44.8 | 4.6 |
Acquisitions | 5 | 4.2 | 40.2 |
Foreign currency translation | 0 | 0 | |
Balance, end of period | 54 | 49 | 44.8 |
Engineered Products [Member] | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 5 | 4.9 | 4.9 |
Acquisitions | 23.2 | 0 | 0 |
Foreign currency translation | -0.3 | 0.1 | |
Balance, end of period | $27.90 | $5 | $4.90 |
Other_Intangible_Assets_Detail
Other Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Details of other intangible assets | |||
Accumulated Amortization | $15.50 | $10.50 | |
Total, Acquisition Costs | 103.6 | 76.7 | |
Total, Net | 88.1 | 66.2 | |
Amortization [Abstract] | |||
Amortization expense | 4.8 | 3.5 | 2.5 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | 6.5 | ||
2016 | 6.4 | ||
2017 | 6.4 | ||
2018 | 6.2 | ||
2019 | 5.8 | ||
Tradenames [Member] | |||
Details of other intangible assets | |||
Indefinite-lived tradenames | 14 | 11.7 | |
Non-contractual customer relationships [Member] | |||
Details of other intangible assets | |||
Weighted Average Useful Life | 11 years 10 months 24 days | ||
Acquisition Costs | 77.3 | 61.1 | |
Accumulated Amortization | 13.2 | 8.7 | |
Net | 64.1 | 52.4 | |
Other [Member] | |||
Details of other intangible assets | |||
Weighted Average Useful Life | 17 years 6 months | ||
Acquisition Costs | 12.3 | 3.9 | |
Accumulated Amortization | 2.3 | 1.8 | |
Net | $10 | $2.10 |
Other_LongTerm_Assets_Details
Other Long-Term Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of other assets | ||
Pension assets | $64.60 | $73.30 |
Deferred financing costs, net | 5.1 | 5.7 |
Other | 3.5 | 1.4 |
Total | $73.20 | $80.40 |
Accrued_Expenses_Schedule_of_A
Accrued Expenses (Schedule of Accrued Expenses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary of accrued expenses | ||
Accrued salaries, wages and benefits | $25.40 | $22.20 |
Advance billings | 28.4 | 20.4 |
Current portion of long-term debt | 9.4 | 4.4 |
Warranty accrual | 6.9 | 5.4 |
Interest payable | 5.2 | 5.6 |
Current portion of other post-retirement liabilities | 1.6 | 1.7 |
Taxes, income and other | 0 | 2.9 |
Other | 26.8 | 23 |
Total | $103.70 | $85.60 |
Accrued_Expenses_Schedule_of_C
Accrued Expenses (Schedule of Changes in Product Warranty Liability) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in product warranty liability | |||
Balance at January 1, | $5.40 | $6.90 | $4.20 |
Claims paid during the year | -2.9 | -6.4 | -6 |
Warranty expense | 4 | 4.9 | 5.4 |
Acquired warranty liabilities | 0.4 | 0 | 3.3 |
Balance at December 31, | $6.90 | $5.40 | $6.90 |
Financing_Arrangements_Textual
Financing Arrangements (Textuals) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||
Dec. 31, 2014 | Jul. 31, 2014 | Oct. 24, 2014 | Dec. 31, 2013 | Sep. 03, 2013 | Apr. 07, 2011 | Oct. 23, 2014 | |
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | 8.13% | ||||||
Foreign subsidiaries borrowings | $0 | $0 | |||||
Foreign subsidiaries outstanding bank guarantees | 5,200,000 | 7,200,000 | |||||
Percentage ownership | 100.00% | ||||||
Weighted average interest rate | 5.62% | 6.10% | |||||
Revolving credit facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | 1.69% | ||||||
Term loan [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | 2.25% | ||||||
Standby letters of credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Term loan, amount outstanding | 20,500,000 | ||||||
8.125% senior notes due 2021 [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount of debt | 250,000,000 | ||||||
Senior notes, interest rate | 8.13% | 8.13% | |||||
Sixth Amended and Restated Credit Agreement [Member] | Revolving credit facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 230,000,000 | ||||||
Term loan, period | 7 years | ||||||
Option to increase capacity | 50,000,000 | ||||||
Inventory advance rate | 50.00% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Revolving credit facility, Canadian sub-limit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 15,000,000 | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Revolving credit facility, European sub-limit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 10,000,000 | ||||||
Potential maximum borrowing capacity | 25,000,000 | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Term loan [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 16,100,000 | ||||||
Sixth Amended and Restated Credit Agreement [Member] | LIBOR [Member] | Revolving credit facility [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 1.50% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | LIBOR [Member] | Revolving credit facility [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 2.50% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | LIBOR [Member] | Term loan [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 2.00% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | LIBOR [Member] | Term loan [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 3.00% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Prime lending rate [Member] | Revolving credit facility [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | -0.25% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Prime lending rate [Member] | Revolving credit facility [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | -1.25% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Prime lending rate [Member] | Term loan [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | -0.75% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Prime lending rate [Member] | Term loan [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 0.25% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Canadian Deposit Offered Rate [Member] | Revolving credit facility, Canadian sub-limit [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 1.50% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Canadian Deposit Offered Rate [Member] | Revolving credit facility, Canadian sub-limit [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 2.50% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Canadian Prime Lending Rate [Member] | Revolving credit facility, Canadian sub-limit [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 0.00% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Canadian Prime Lending Rate [Member] | Revolving credit facility, Canadian sub-limit [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 1.00% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Base Rate [Member] | Revolving credit facility, Canadian sub-limit [Member] | Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 0.00% | ||||||
Sixth Amended and Restated Credit Agreement [Member] | Base Rate [Member] | Revolving credit facility, Canadian sub-limit [Member] | Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 1.00% | ||||||
Amendment Number One to Sixth Amended and Restated Credit Agreement [Member] | Revolving credit facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 250,000,000 | ||||||
Inventory advance rate | 60.00% | ||||||
Inventory advance rate to be reduced to on a pro-rata quarterly basis | 50.00% | ||||||
Term over which inventory advance rate reduces | 36 months | ||||||
Term loan, amount outstanding | 22,000,000 | ||||||
Term over which basis spread on variable rate reduces | 36 months | ||||||
Unused borrowing capacity | 55,400,000 | ||||||
Amendment Number One to Sixth Amended and Restated Credit Agreement [Member] | Revolving credit facility, Canadian sub-limit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 25,000,000 | ||||||
Amendment Number One to Sixth Amended and Restated Credit Agreement [Member] | Revolving credit facility, European sub-limit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 25,000,000 | ||||||
Amendment Number One to Sixth Amended and Restated Credit Agreement [Member] | Term loan [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 35,000,000 | ||||||
Term loan, amount outstanding | $28,800,000 | $15,500,000 | |||||
Amendment Number One to Sixth Amended and Restated Credit Agreement [Member] | LIBOR [Member] | Revolving credit facility [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate | 3.50% |
Financing_Arrangements_Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 03, 2013 | Apr. 07, 2011 |
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest rate | 8.13% | |||
Components of Long-term debt | ||||
Long-term debt | $443.80 | $383.60 | ||
Less current maturities | 9.4 | 4.4 | ||
Total long-term debt, net of current portion | 434.4 | 379.2 | ||
Revolving credit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest rate | 1.69% | |||
Components of Long-term debt | ||||
Long-term debt | 162 | 111 | ||
Term loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest rate | 2.25% | |||
Components of Long-term debt | ||||
Long-term debt | 28.8 | 18.7 | ||
8.125% senior notes due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes, interest rate | 8.13% | 8.13% | ||
Components of Long-term debt | ||||
Long-term debt | 250 | 250 | ||
Other [Member] | ||||
Components of Long-term debt | ||||
Long-term debt | $3 | $3.90 |
Financing_Arrangements_Fair_Va
Financing Arrangements (Fair Value of Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Carrying amount | $443.80 | $383.60 |
Level 1 [Member] | Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Carrying amount | 250 | 250 |
Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Fair value | $266.30 | $275.60 |
Financing_Arrangements_Schedul1
Financing Arrangements (Schedule of Maturities of Long-term Debt) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $9.40 |
2016 | 12.2 |
2017 | 12.1 |
2018 | 6.5 |
2019 | $153.60 |
Income_Taxes_Textual_Details
Income Taxes (Textual) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Loss Carryforwards [Line Items] | ||
Deferred tax asset, cumulative loss position term | 3 years | 3 years |
Valuation allowances | $7.10 | $2.60 |
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 5.4 | 4.7 |
Net interest and penalties | 0.3 | 0.7 |
Payment of interest and penalties accrued | 1.7 | 1.4 |
Undistributed earnings | 90.2 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards for income tax purposes | 16.4 | |
Operating loss carryforward, subject to expiration | 1.9 | |
Valuation allowances | 6.9 | 1.2 |
Foreign Tax Authority [Member] | Minimum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration year | 2015 | |
Foreign Tax Authority [Member] | Maximum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration year | 2024 | |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards for income tax purposes | 2.9 | |
Valuation allowance against state net operating loss carryforward | 1.3 | |
State and Local Jurisdiction [Member] | Minimum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration year | 2015 | |
State and Local Jurisdiction [Member] | Maximum [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, expiration year | 2033 | |
Capital Loss Carryforward [Member] | Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Tax Credit Carryforward, Amount | $0.60 |
Income_Taxes_Income_from_Conti
Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income from continuing operations before income tax expense | |||
United States | $54.30 | $49.30 | $40.60 |
Outside the United States | 18.5 | 11.7 | 15.3 |
Income before income taxes | $72.80 | $61 | $55.90 |
Income_Taxes_Income_Taxes_Deta
Income Taxes (Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current expense: | |||
Federal | $17.60 | $16 | $7.50 |
State | 0.8 | 1.5 | 0.9 |
Foreign | 6.2 | 4.2 | 4.4 |
Total | 24.6 | 21.7 | 12.8 |
Deferred expense (benefit): | |||
Federal | 1.1 | 1.4 | 7.9 |
State | -0.8 | -2.6 | -0.2 |
Foreign | 0.3 | -0.9 | 0.3 |
Total | 0.6 | -2.1 | 8 |
Income tax expense | $25.20 | $19.60 | $20.80 |
Income_Taxes_Reconciliation_Be
Income Taxes (Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Rate reconciliation | |||
Tax at statutory rate | $25.40 | $21.30 | $19.70 |
Effect of state income taxes, net | 1.4 | 1.1 | 1 |
Effect of foreign operations | -0.9 | -0.2 | -0.1 |
Valuation allowance | -1.1 | -1.6 | -0.2 |
Non-deductible items | 1.8 | 0.7 | 0.6 |
Manufacturer's deduction | -1.4 | -1.4 | -0.6 |
Other, net | 0 | -0.3 | 0.4 |
Income tax expense | $25.20 | $19.60 | $20.80 |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components of the Company's Net Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Postretirement benefit obligation | $6.20 | $5.90 |
Inventory | 13.7 | 13.2 |
Net operating loss and credit carryforwards | 6.3 | 3.8 |
Goodwill | 1 | 0.5 |
Warranty reserve | 2.5 | 2.1 |
Compensation | 6 | 4.3 |
Other | 10.7 | 10.1 |
Total deferred tax assets | 46.4 | 39.9 |
Deferred tax liabilities: | ||
Depreciation and amortization | 13.2 | 11.7 |
Pension | 23.3 | 26.4 |
Goodwill | 2.7 | 2.7 |
Intangible assets | 14.5 | 15.4 |
Other | 1.4 | 1.8 |
Total deferred tax liabilities | 55.1 | 58 |
Net deferred tax liabilities prior to valuation allowances | -8.7 | -18.1 |
Valuation allowances | -7.1 | -2.6 |
Net deferred tax liability | ($15.80) | ($20.70) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Beginning and Ending amount of Unrecognized tax benefits | |||
Unrecognized Tax Benefit b January 1, | $5.90 | $6.10 | $6 |
Gross Increases b Tax Positions in Prior Period | 0.8 | 0.4 | 0.1 |
Gross Decreases b Tax Positions in Prior Period | -0.2 | -0.6 | 0 |
Gross Increases b Tax Positions in Current Period | 0 | 0 | 0.1 |
Lapse of Statute of Limitations | 0 | 0 | -0.1 |
Unrecognized Tax Benefit b December 31, | $6.50 | $5.90 | $6.10 |
StockBased_Compensation_Textua
Stock-Based Compensation (Textual) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options outstanding and exercisable (in shares) | 143,500 | 146,000 | |
Intrinsic value of options exercised | $0.10 | $1.10 | $0.80 |
Proceeds from the exercise of stock options | 0 | 0.4 | 0.5 |
Stock option awards granted | 0 | 0 | 0 |
Fair value of restricted stock units vested | 11.5 | 6.1 | 4.6 |
Unrecognized compensation expense | 9.8 | ||
Unrecognized compensation expense, expected weighted average recognition period | 2 years | ||
Number of shares available for grant | 120,871 | ||
Stock options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options granted, percentage discount from market value | 0.5 | ||
Options granted | 20.00% | ||
Stock-based compensation expense | 0.1 | ||
Restricted shares and performance shares [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $5.80 | $4.70 | $2.70 |
Range One [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Exercise price range, lower limit (in dollars per share) | $14.12 | ||
Exercise price range, upper limit (in dollars per share) | $15.61 | ||
Options outstanding and exercisable (in shares) | 108,500 | ||
Range Two [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Exercise price range, lower limit (in dollars per share) | $20 | ||
Exercise price range, upper limit (in dollars per share) | $24.92 | ||
Options outstanding and exercisable (in shares) | 35,000 |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Number of Shares | |||
Outstanding b beginning of year, number of shares | 146,000 | ||
Granted, number of shares | 0 | 0 | 0 |
Exercised, number of shares | -2,500 | ||
Canceled or expired, number of shares | 0 | ||
Outstanding b end of year, number of shares | 143,500 | 146,000 | |
Options exercisable, number of shares | 143,500 | ||
Weighted Average Exercise Price | |||
Outstanding - beginning of year, Weighted Average Exercise Price (in dollars per share) | $16.71 | ||
Granted, Weighted Average Exercise Price (in dollars per share) | $0 | ||
Exercised, Weighted Average Exercise Price (in dollars per share) | $14.12 | ||
Canceled or expired, Weighted Average Exercise Price (in dollars per share) | $0 | ||
Outstanding - end of year, Weighted Average Exercise Price (in dollars per share) | $16.76 | $16.71 | |
Options Exercisable - end of year, Weighted Average Exercise Price (in dollars per share) | $16.76 | ||
Outstanding - end of year, weighted average remaining contractual term | 1 year 8 months 12 days | ||
Options Exercisable, Weighted average remaining contractual life | 1 year 8 months 12 days | ||
Outstanding - end of year, Aggregate intrinsic value | $6.60 | ||
Options Exercisable, Aggregate intrinsic value | $6.60 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary of restricted share activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Time-Based [Member] | |
Number of Shares | |
Outstanding - beginning of year, number of shares | 422,898 |
Granted, number of shares | 137,750 |
Vested, number of shares | -211,048 |
Canceled or expired, number of shares | -4,668 |
Outstanding - end of year, number of shares | 344,932 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $21.04 |
Granted, weighted average grant date fair value (in dollars per share) | $57.04 |
Vested, weighted average grant date fair value (in dollars per share) | $23.71 |
Canceled or expired, weighted average grant date fair value (in dollars per share) | $38.19 |
Outstanding - end of year, weighted average grant date fair value (in dollars per share) | $33.55 |
Performance-Based [Member] | |
Number of Shares | |
Outstanding - beginning of year, number of shares | 42,000 |
Granted, number of shares | 0 |
Vested, number of shares | -14,000 |
Canceled or expired, number of shares | 0 |
Outstanding - end of year, number of shares | 28,000 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $20.30 |
Granted, weighted average grant date fair value (in dollars per share) | $0 |
Vested, weighted average grant date fair value (in dollars per share) | $20.30 |
Canceled or expired, weighted average grant date fair value (in dollars per share) | $0 |
Outstanding - end of year, weighted average grant date fair value (in dollars per share) | $20.30 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Litigation Judgment (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Future minimum lease commitments | ||||
2015 | $14.80 | |||
2016 | 12.7 | |||
2017 | 9.9 | |||
2018 | 6.1 | |||
2019 | 2.9 | |||
Thereafter | 2.3 | |||
Rental expense | 18.6 | 17.6 | 15.8 | |
Affiliated Entity [Member] | ||||
Future minimum lease commitments | ||||
Rental expense | 2.3 | |||
TMK IPSCO [Member] | ||||
Loss Contingencies [Line Items] | ||||
Damages awarded | 5.2 | |||
Additional damages sought | 3.8 | |||
Direct Damages [Member] | TMK IPSCO [Member] | ||||
Loss Contingencies [Line Items] | ||||
Direct damages sought | $10 |
Pensions_and_Postretirement_Be2
Pensions and Postretirement Benefits (Textual) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendment | $1.10 | |||
Annual supplemental retirement benefit | 0.4 | |||
Supplemental retirement benefit, payment period, maximum | 13 years | |||
Supplemental retirement benefit, credited service period | 7 years | |||
Supplemental retirement benefit, service credit period | 20 years | |||
Supplemental retirement benefit, percent of pension to be received | 100.00% | |||
Supplemental retirement benefit, expense | 0.5 | 0.5 | 0.5 | |
Non-qualified defined contribution retirement benefit, quarterly contribution | 0.1 | |||
Non-qualified defined contribution retirement benefit, annual contribution | 0.4 | |||
Non-qualified defined contribution retirement benefit, contribution period | 7 years | |||
Non-qualified defined contribution retirement benefit, vesting percentage | 100.00% | |||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendment | 0.4 | 0 | ||
Expected return on plan assets | 8.25% | 8.25% | 8.25% | |
Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan amendment | 0 | 0 | ||
Estimated net loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost | 0.2 | |||
Estimated prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost | $0.60 |
Pensions_and_Postretirement_Be3
Pensions and Postretirement Benefits (Change in benefit obligation) (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 30, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Plan amendment | $1.10 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at end of year | 125.7 | 125.4 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 52.1 | 56.4 | ||
Service cost | 2.2 | 2.6 | 2.2 | |
Interest cost | 2.2 | 2 | 2.2 | |
Actuarial (gains) losses | 8.8 | -4.4 | ||
Plan amendment | 0.4 | 0 | ||
Benefits and expenses paid, net of contributions | -4.6 | -4.5 | ||
Benefit obligation at end of year | 61.1 | 52.1 | 56.4 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 125.4 | 109.4 | ||
Actual return on plan assets | 5.8 | 21.8 | ||
Company contributions | 0 | 0 | ||
Cash transfer to fund postretirement benefit payments | -0.9 | -1.3 | ||
Benefits and expenses paid, net of contributions | -4.6 | -4.5 | ||
Fair value of plan assets at end of year | 125.7 | 125.4 | 109.4 | |
Funded (underfunded) status of the plans | 64.6 | 73.3 | ||
Postretirement Benefits [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation at beginning of year | 16.2 | 18.5 | ||
Service cost | 0 | 0.1 | 0 | |
Interest cost | 0.6 | 0.6 | 0.8 | |
Actuarial (gains) losses | 1.9 | -1.3 | ||
Plan amendment | 0 | 0 | ||
Benefits and expenses paid, net of contributions | -1.7 | -1.7 | ||
Benefit obligation at end of year | 17 | 16.2 | 18.5 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contributions | 1.7 | 1.7 | ||
Cash transfer to fund postretirement benefit payments | 0 | 0 | ||
Benefits and expenses paid, net of contributions | -1.7 | -1.7 | ||
Fair value of plan assets at end of year | 0 | 0 | 0 | |
Funded (underfunded) status of the plans | ($17) | ($16.20) |
Pensions_and_Postretirement_Be4
Pensions and Postretirement Benefits (Amounts recognized in the balance sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Current liabilities | $1.60 | $1.70 |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | 64.6 | 73.3 |
Noncurrent liabilities | 0 | 0 |
Current liabilities | 0 | 0 |
Amounts recognized in consolidated balance sheets - net assets (liabilities) | 64.6 | 73.3 |
Net actuarial loss | 15.3 | 2.1 |
Net prior service cost (credit) | 0.4 | 0.1 |
Accumulated other comprehensive loss | 15.7 | 2.2 |
Postretirement Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Noncurrent assets | 0 | 0 |
Noncurrent liabilities | 15.4 | 14.5 |
Current liabilities | 1.6 | 1.7 |
Amounts recognized in consolidated balance sheets - net assets (liabilities) | -17 | -16.2 |
Net actuarial loss | 7.6 | 6.3 |
Net prior service cost (credit) | -0.4 | -0.5 |
Accumulated other comprehensive loss | $7.20 | $5.80 |
Pensions_and_Postretirement_Be5
Pensions and Postretirement Benefits (Weighted-average asset allocation) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation | 100.00% | |
Actual plan asset allocation | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation, minimum | 45.00% | |
Target plan asset allocation, maximum | 75.00% | |
Actual plan asset allocation | 64.60% | 67.20% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation, minimum | 10.00% | |
Target plan asset allocation, maximum | 40.00% | |
Actual plan asset allocation | 27.90% | 25.40% |
Other Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target plan asset allocation, minimum | 0.00% | |
Target plan asset allocation, maximum | 20.00% | |
Actual plan asset allocation | 7.50% | 7.40% |
Pensions_and_Postretirement_Be6
Pensions and Postretirement Benefits (Assets by fair value hierarchy) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $125.70 | $125.40 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 125.7 | 125.4 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 115.9 | 115.6 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 115.9 | 115.6 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.2 | 2.5 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 2.2 | 2.5 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.6 | 7.3 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 7.6 | 7.3 |
Common Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 47.8 | 50.8 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 47.8 | 50.8 |
Common Stock [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 45.6 | 48.3 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 45.6 | 48.3 |
Common Stock [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.2 | 2.5 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 2.2 | 2.5 |
Common Stock [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26.9 | 26.9 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 26.9 | 26.9 |
Equity Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 26.9 | 26.9 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 26.9 | 26.9 |
Equity Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Equity Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Foreign Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.4 | 5.6 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 5.4 | 5.6 |
Foreign Stock [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.4 | 5.6 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 5.4 | 5.6 |
Foreign Stock [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Foreign Stock [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
U.S. Government obligations [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7 | 5.1 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 7 | 5.1 |
U.S. Government obligations [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7 | 5.1 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 7 | 5.1 |
U.S. Government obligations [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
U.S. Government obligations [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 19.6 | 18.8 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 19.6 | 18.8 |
Fixed Income Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 19.6 | 18.8 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 19.6 | 18.8 |
Fixed Income Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Fixed Income Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Balanced Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.1 | 2.1 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 2.1 | 2.1 |
Balanced Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.1 | 2.1 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 2.1 | 2.1 |
Balanced Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Balanced Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Corporate Bonds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.5 | 6.8 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 7.5 | 6.8 |
Corporate Bonds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.5 | 6.8 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 7.5 | 6.8 |
Corporate Bonds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Corporate Bonds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.8 | 2 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 1.8 | 2 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.8 | 2 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 1.8 | 2 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Hedge Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.6 | 7.3 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at beginning of year | 7.3 | 6.4 |
Net Unrealized Gain | 0.3 | 0.9 |
Purchases | 0 | 0 |
Fair value of plan assets at end of year | 7.6 | 7.3 |
Hedge Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Hedge Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | 0 | 0 |
Hedge Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.6 | 7.3 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Fair value of plan assets at end of year | $7.60 | $7.30 |
Pensions_and_Postretirement_Be7
Pensions and Postretirement Benefits (Fair value assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.82% | 4.51% | 3.66% |
Expected return on plan assets | 8.25% | 8.25% | 8.25% |
Rate of compensation increase | 3.00% | 2.00% | 2.00% |
Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.60% | 4.21% | 3.35% |
Medical health care benefits rate increase | 7.00% | 6.50% | 7.00% |
Medical drug benefits rate increase | 7.00% | 6.50% | 7.25% |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Year of ultimate trend rate | 2022 | 2042 | 2042 |
Pensions_and_Postretirement_Be8
Pensions and Postretirement Benefits (Components of net periodic benefit) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | |||
Components of net periodic benefit cost | |||
Service costs | $2.20 | $2.60 | $2.20 |
Interest costs | 2.2 | 2 | 2.2 |
Expected return on plan assets | -10.1 | -8.9 | -8.2 |
Amortization of prior service cost (credit) | 0.1 | 0 | 0 |
Recognized net actuarial loss | 0 | 0.8 | 0.9 |
Net periodic benefit (gains) costs | -5.6 | -3.5 | -2.9 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||
AOCI at beginning of year | 2.2 | 20.3 | 22.4 |
Net (gain) loss arising during the year | 13.1 | -17.3 | -1.2 |
Recognition of prior service credit | 0 | 0 | 0 |
Recognition of actuarial loss | 0.4 | -0.8 | -0.9 |
Total recognized in accumulated other comprehensive loss at end of year | 15.7 | 2.2 | 20.3 |
Postretirement Benefits [Member] | |||
Components of net periodic benefit cost | |||
Service costs | 0 | 0.1 | 0 |
Interest costs | 0.6 | 0.6 | 0.8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | -0.1 | -0.1 | -0.1 |
Recognized net actuarial loss | 0.5 | 0.7 | 0.7 |
Net periodic benefit (gains) costs | 1 | 1.3 | 1.4 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||
AOCI at beginning of year | 5.8 | 7.6 | 7.1 |
Net (gain) loss arising during the year | 1.8 | -1.2 | 1.1 |
Recognition of prior service credit | 0.1 | 0.1 | 0.1 |
Recognition of actuarial loss | -0.5 | -0.7 | -0.7 |
Total recognized in accumulated other comprehensive loss at end of year | $7.20 | $5.80 | $7.60 |
Pensions_and_Postretirement_Be9
Pensions and Postretirement Benefits (Expected future benefit payments) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $4.30 |
2016 | 4.2 |
2017 | 4.3 |
2018 | 4.3 |
2019 | 4.3 |
2020 to 2024 | 23.1 |
Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 1.6 |
2016 | 1.5 |
2017 | 1.5 |
2018 | 1.4 |
2019 | 1.3 |
2020 to 2024 | 5.5 |
Postretirement Benefits [Member] | Gross Including Medicare Subsidy [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 1.7 |
2016 | 1.6 |
2017 | 1.6 |
2018 | 1.5 |
2019 | 1.4 |
2020 to 2024 | 6 |
Postretirement Benefits [Member] | Expected Medicare Subsidy [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 0.1 |
2016 | 0.1 |
2017 | 0.1 |
2018 | 0.1 |
2019 | 0.1 |
2020 to 2024 | $0.50 |
Recovered_Sheet1
Pensions and Postretirement Benefits (Effect of one-percentage-point change in the assumed health care cost trend rate) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | |
Effect on total of service and interest cost components, 1-percentage point increase | $0.10 |
Effect on total of service and interest cost components, 1-percentage point decrease | 0 |
Effect on postretirement benefit obligation, 1-percentage point increase | 1.5 |
Effect on postretirement benefit obligation, 1-percentage point decrease | ($1.30) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of accumulated comprehensive loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Ending balance | ($14) | $3.40 | |
Cumulative Translation Adjustment [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 2.8 | 5.3 | 4.7 |
Foreign currency translation adjustments | -7.9 | -2.5 | 0.6 |
Recognition of actuarial gain, net | 0 | 0 | 0 |
Tax adjustment | 0 | 0 | 0 |
Recognition of actuarial gain, net | 0 | 0 | |
Ending balance | -5.1 | 2.8 | 5.3 |
Pension and Postretirement Benefits [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 0.6 | -12.2 | -13.2 |
Foreign currency translation adjustments | 0 | 0 | 0 |
Recognition of actuarial gain, net | -14.9 | 19.9 | 1.6 |
Tax adjustment | 5.4 | -7.1 | -0.6 |
Recognition of actuarial gain, net | -9.5 | 12.8 | 1 |
Ending balance | -8.9 | 0.6 | -12.2 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 3.4 | -6.9 | -8.5 |
Foreign currency translation adjustments | -7.9 | -2.5 | 0.6 |
Recognition of actuarial gain, net | -14.9 | 19.9 | 1.6 |
Tax adjustment | 5.4 | -7.1 | -0.6 |
Recognition of actuarial gain, net | -9.5 | 12.8 | |
Ending balance | ($14) | $3.40 | ($6.90) |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 0 Months Ended | |||
Mar. 06, 2015 | Feb. 09, 2015 | Oct. 24, 2014 | Mar. 12, 2015 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividend declared (in dollars per share) | $0.13 | |||
Dividend paid | $1,600,000 | |||
Amendment Number One to Sixth Amended and Restated Credit Agreement [Member] | Revolving credit facility [Member] | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | 250,000,000 | |||
March 2015 Credit Agreement Amendment [Member] | Revolving credit facility [Member] | Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $275,000,000 |
Supplemental_Guarantor_Informa2
Supplemental Guarantor Information (Textual) (Details) (Southwest Steel Processing LLC [Member]) | Aug. 01, 2013 |
Southwest Steel Processing LLC [Member] | |
Supplemental Guarantor Information (Textual) [Abstract] | |
Sale of noncontrolling interest, percentage | 25.00% |
Supplemental_Guarantor_Informa3
Supplemental Guarantor Information (Condensed Consolidating Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $48.30 | $43.70 | $42.40 | $61.30 |
Accounts receivable, net | 208 | 165.6 | ||
Inventories, net | 238.4 | 221.4 | ||
Deferred tax assets | 28.1 | 24.6 | ||
Unbilled contract revenue | 26.8 | 8.7 | ||
Prepaid and other current assets | 22.5 | 21.9 | ||
Total current assets | 572.1 | 485.9 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany advances | 0 | 0 | ||
Net property, plant and equipment | 141 | 114.5 | ||
Goodwill | 89.5 | 60.4 | 49.7 | 9.5 |
Intangible assets, net | 88.1 | 66.2 | ||
Other long-term assets | 73.2 | 80.4 | ||
Total assets | 963.9 | 807.4 | 722.8 | |
Current liabilities: | ||||
Trade accounts payable | 162.1 | 112.9 | ||
Payables to affiliates | 1.8 | 1.6 | ||
Accrued expenses and other | 103.7 | 85.6 | ||
Total current liabilities | 267.6 | 200.1 | ||
Long-term liabilities, less current portion: | ||||
Debt | 434.4 | 379.2 | ||
Deferred tax liabilities | 43.9 | 45.3 | ||
Other postretirement benefits and other long-term liabilities | 40.1 | 32.2 | ||
Total long-term liabilities | 518.4 | 456.7 | ||
Intercompany advances | 0 | 0 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 171.6 | 145.6 | ||
Noncontrolling interest | 6.3 | 5 | ||
Total equity | 177.9 | 150.6 | 96.4 | 47.7 |
Total liabilities and shareholder's equity | 963.9 | 807.4 | ||
Parent [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Deferred tax assets | 0 | 0 | ||
Unbilled contract revenue | 0 | 0 | ||
Prepaid and other current assets | 1.6 | 0.7 | ||
Total current assets | 1.6 | 0.7 | ||
Investment in subsidiaries | 451.8 | 403.8 | ||
Intercompany advances | 249.5 | 158.1 | ||
Net property, plant and equipment | 7.1 | 5.8 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 68 | 77.1 | ||
Total assets | 778 | 645.5 | ||
Current liabilities: | ||||
Trade accounts payable | 2.2 | 1.3 | ||
Payables to affiliates | 0 | 0 | ||
Accrued expenses and other | 18 | 14.2 | ||
Total current liabilities | 20.2 | 15.5 | ||
Long-term liabilities, less current portion: | ||||
Debt | 432.2 | 376.2 | ||
Deferred tax liabilities | 0 | 0 | ||
Other postretirement benefits and other long-term liabilities | 25.1 | 23.6 | ||
Total long-term liabilities | 457.3 | 399.8 | ||
Intercompany advances | 122.6 | 79.6 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 171.6 | 145.6 | ||
Noncontrolling interest | 6.3 | 5 | ||
Total equity | 177.9 | 150.6 | ||
Total liabilities and shareholder's equity | 778 | 645.5 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 3.8 | 0.7 | 0.2 | 0.1 |
Accounts receivable, net | 148.3 | 124 | ||
Inventories, net | 176.2 | 175.5 | ||
Deferred tax assets | 27.4 | 23.3 | ||
Unbilled contract revenue | 18.1 | 8.5 | ||
Prepaid and other current assets | 14.9 | 16.1 | ||
Total current assets | 388.7 | 348.1 | ||
Investment in subsidiaries | 162.6 | 149.8 | ||
Intercompany advances | 86 | 12 | ||
Net property, plant and equipment | 101.2 | 93.3 | ||
Goodwill | 56.6 | 51.3 | ||
Intangible assets, net | 74.6 | 52.3 | ||
Other long-term assets | 1.8 | 2.7 | ||
Total assets | 871.5 | 709.5 | ||
Current liabilities: | ||||
Trade accounts payable | 120.4 | 89.6 | ||
Payables to affiliates | 0 | 0 | ||
Accrued expenses and other | 52.1 | 48.5 | ||
Total current liabilities | 172.5 | 138.1 | ||
Long-term liabilities, less current portion: | ||||
Debt | 2 | 2.6 | ||
Deferred tax liabilities | 41.6 | 42.8 | ||
Other postretirement benefits and other long-term liabilities | 9 | 7.6 | ||
Total long-term liabilities | 52.6 | 53 | ||
Intercompany advances | 214.2 | 129.3 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 432.2 | 389.1 | ||
Noncontrolling interest | 0 | 0 | ||
Total equity | 432.2 | 389.1 | ||
Total liabilities and shareholder's equity | 871.5 | 709.5 | ||
Combined Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 44.5 | 43 | 42.2 | 61.2 |
Accounts receivable, net | 59.7 | 41.6 | ||
Inventories, net | 62.2 | 45.9 | ||
Deferred tax assets | 0.7 | 1.3 | ||
Unbilled contract revenue | 8.7 | 0.2 | ||
Prepaid and other current assets | 6 | 5.1 | ||
Total current assets | 181.8 | 137.1 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany advances | 161.2 | 143 | ||
Net property, plant and equipment | 32.7 | 15.4 | ||
Goodwill | 32.9 | 9.1 | ||
Intangible assets, net | 13.5 | 13.9 | ||
Other long-term assets | 3.4 | 0.6 | ||
Total assets | 425.5 | 319.1 | ||
Current liabilities: | ||||
Trade accounts payable | 39.5 | 22 | ||
Payables to affiliates | 1.8 | 1.6 | ||
Accrued expenses and other | 33.6 | 22.9 | ||
Total current liabilities | 74.9 | 46.5 | ||
Long-term liabilities, less current portion: | ||||
Debt | 0.2 | 0.4 | ||
Deferred tax liabilities | 2.3 | 2.5 | ||
Other postretirement benefits and other long-term liabilities | 6 | 1 | ||
Total long-term liabilities | 8.5 | 3.9 | ||
Intercompany advances | 159.9 | 104.2 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 175.9 | 159.5 | ||
Noncontrolling interest | 6.3 | 5 | ||
Total equity | 182.2 | 164.5 | ||
Total liabilities and shareholder's equity | 425.5 | 319.1 | ||
Reclassifications/ Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Deferred tax assets | 0 | 0 | ||
Unbilled contract revenue | 0 | 0 | ||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Investment in subsidiaries | -614.4 | -553.6 | ||
Intercompany advances | -496.7 | -313.1 | ||
Net property, plant and equipment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | -1,111.10 | -866.7 | ||
Current liabilities: | ||||
Trade accounts payable | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Accrued expenses and other | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term liabilities, less current portion: | ||||
Debt | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Other postretirement benefits and other long-term liabilities | 0 | 0 | ||
Total long-term liabilities | 0 | 0 | ||
Intercompany advances | -496.7 | -313.1 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | -608.1 | -548.6 | ||
Noncontrolling interest | -6.3 | -5 | ||
Total equity | -614.4 | -553.6 | ||
Total liabilities and shareholder's equity | ($1,111.10) | ($866.70) |
Supplemental_Guarantor_Informa4
Supplemental Guarantor Information (Consolidating Statements of Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidating statement of operations | ||||
Net sales | $1,378.70 | $1,203.20 | $1,128.20 | |
Cost of sales | 1,144.20 | 992.2 | 920.9 | |
Gross profit | 234.5 | 211 | 207.3 | |
Selling, general and administrative expenses | 135.6 | 119.5 | 112.4 | |
Litigation judgment and settlement costs | 0 | 5.2 | 13 | |
Income (loss) from subsidiaries | 0 | 0 | 0 | |
Operating income | 98.9 | 86.3 | 81.9 | |
Gain on acquisition of business | -0.6 | 0 | -0.6 | 0 |
Interest expense | 26.1 | 25.9 | 26 | |
Income from continuing operations before income taxes | 72.8 | 61 | 55.9 | |
Income tax expense | 25.2 | 19.6 | 20.8 | |
Net income from continuing operations | 47.6 | 41.4 | 35.1 | |
Income (loss) from discontinued operations, net of taxes | 0 | 3 | -2.4 | |
Net income | 47.6 | 44.4 | 32.7 | |
Net income attributable to noncontrolling interest | -1.3 | -0.5 | 0 | |
Net income attributable to ParkOhio common shareholder | 46.3 | 43.9 | 32.7 | |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain | -7.9 | -2.5 | 0.6 | |
Pension and postretirement benefit adjustments, net of tax | -9.5 | 12.8 | 1 | |
Total comprehensive income, net of tax | 30.2 | 54.7 | 34.3 | |
Comprehensive income attributable to noncontrolling interest | -1.3 | -0.5 | 0 | |
Comprehensive income attributable to ParkOhio common shareholder | 28.9 | 54.2 | 34.3 | |
Parent [Member] | ||||
Consolidating statement of operations | ||||
Net sales | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | |
Selling, general and administrative expenses | 26.2 | 20.9 | 16.9 | |
Litigation judgment and settlement costs | 0 | 0 | ||
Income (loss) from subsidiaries | 99.5 | 88.2 | 77.8 | |
Operating income | 73.3 | 67.3 | 60.9 | |
Gain on acquisition of business | 0 | |||
Interest expense | 25.7 | 25.9 | 25.8 | |
Income from continuing operations before income taxes | 47.6 | 41.4 | 35.1 | |
Income tax expense | 0 | 0 | 0 | |
Net income from continuing operations | 47.6 | 41.4 | 35.1 | |
Income (loss) from discontinued operations, net of taxes | 3 | -2.4 | ||
Net income | 47.6 | 44.4 | 32.7 | |
Net income attributable to noncontrolling interest | -1.3 | -0.5 | 0 | |
Net income attributable to ParkOhio common shareholder | 46.3 | 43.9 | 32.7 | |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain | -7.9 | -2.5 | 0.6 | |
Pension and postretirement benefit adjustments, net of tax | -9.5 | 12.8 | 1 | |
Total comprehensive income, net of tax | 30.2 | 54.7 | 34.3 | |
Comprehensive income attributable to noncontrolling interest | -1.3 | -0.5 | 0 | |
Comprehensive income attributable to ParkOhio common shareholder | 28.9 | 54.2 | 34.3 | |
Guarantor Subsidiaries [Member] | ||||
Consolidating statement of operations | ||||
Net sales | 1,103 | 989 | 934.7 | |
Cost of sales | 928.7 | 819.7 | 773.5 | |
Gross profit | 174.3 | 169.3 | 161.2 | |
Selling, general and administrative expenses | 74.7 | 72.7 | 73.8 | |
Litigation judgment and settlement costs | 5.2 | 13 | ||
Income (loss) from subsidiaries | 15.5 | 9.4 | 15 | |
Operating income | 115.1 | 100.8 | 89.4 | |
Gain on acquisition of business | -0.6 | |||
Interest expense | 0 | 0.1 | 0 | |
Income from continuing operations before income taxes | 115.1 | 101.3 | 89.4 | |
Income tax expense | 17.4 | 16.3 | 15.1 | |
Net income from continuing operations | 97.7 | 85 | 74.3 | |
Income (loss) from discontinued operations, net of taxes | 0 | 0 | ||
Net income | 97.7 | 85 | 74.3 | |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | |
Net income attributable to ParkOhio common shareholder | 97.7 | 85 | 74.3 | |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain | 0 | 0 | 0 | |
Pension and postretirement benefit adjustments, net of tax | -9.5 | 12.8 | 1 | |
Total comprehensive income, net of tax | 88.2 | 97.8 | 75.3 | |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | |
Comprehensive income attributable to ParkOhio common shareholder | 88.2 | 97.8 | 75.3 | |
Combined Non-Guarantor Subsidiaries [Member] | ||||
Consolidating statement of operations | ||||
Net sales | 275.7 | 214.2 | 193.5 | |
Cost of sales | 215.5 | 172.5 | 147.4 | |
Gross profit | 60.2 | 41.7 | 46.1 | |
Selling, general and administrative expenses | 34.7 | 25.9 | 21.7 | |
Litigation judgment and settlement costs | 0 | 0 | ||
Income (loss) from subsidiaries | 0 | 0 | 0 | |
Operating income | 25.5 | 15.8 | 24.4 | |
Gain on acquisition of business | 0 | |||
Interest expense | 0.4 | -0.1 | 0.2 | |
Income from continuing operations before income taxes | 25.1 | 15.9 | 24.2 | |
Income tax expense | 7.8 | 3.3 | 5.7 | |
Net income from continuing operations | 17.3 | 12.6 | 18.5 | |
Income (loss) from discontinued operations, net of taxes | 3 | -2.4 | ||
Net income | 17.3 | 15.6 | 16.1 | |
Net income attributable to noncontrolling interest | -1.3 | -0.5 | 0 | |
Net income attributable to ParkOhio common shareholder | 16 | 15.1 | 16.1 | |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain | -7.9 | -2.5 | 0.6 | |
Pension and postretirement benefit adjustments, net of tax | 0 | 0 | 0 | |
Total comprehensive income, net of tax | 9.4 | 13.1 | 16.7 | |
Comprehensive income attributable to noncontrolling interest | -1.3 | -0.5 | 0 | |
Comprehensive income attributable to ParkOhio common shareholder | 8.1 | 12.6 | 16.7 | |
Reclassifications/ Eliminations [Member] | ||||
Consolidating statement of operations | ||||
Net sales | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | |
Gross profit | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | |
Litigation judgment and settlement costs | 0 | 0 | ||
Income (loss) from subsidiaries | -115 | -97.6 | -92.8 | |
Operating income | -115 | -97.6 | -92.8 | |
Gain on acquisition of business | 0 | |||
Interest expense | 0 | 0 | 0 | |
Income from continuing operations before income taxes | -115 | -97.6 | -92.8 | |
Income tax expense | 0 | 0 | 0 | |
Net income from continuing operations | -115 | -97.6 | -92.8 | |
Income (loss) from discontinued operations, net of taxes | -3 | 2.4 | ||
Net income | -115 | -100.6 | -90.4 | |
Net income attributable to noncontrolling interest | 1.3 | 0.5 | 0 | |
Net income attributable to ParkOhio common shareholder | -113.7 | -100.1 | -90.4 | |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain | 7.9 | 2.5 | -0.6 | |
Pension and postretirement benefit adjustments, net of tax | 9.5 | -12.8 | -1 | |
Total comprehensive income, net of tax | -97.6 | -110.9 | -92 | |
Comprehensive income attributable to noncontrolling interest | 1.3 | 0.5 | 0 | |
Comprehensive income attributable to ParkOhio common shareholder | ($96.30) | ($110.40) | ($92) |
Supplemental_Guarantor_Informa5
Supplemental Guarantor Information (Condensed Consolidating Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net cash provided (used) by operating activities | $55.90 | $59.70 | $56.50 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | -25.8 | -29.8 | -26.9 |
Proceeds from sale and leaseback transactions | 0 | 7.4 | 5.9 |
Proceeds from sale of assets | 2.1 | 14.2 | 0.4 |
Business acquisitions, net of cash acquired | -72.7 | -45.8 | -97 |
Net cash used by investing activities | -96.4 | -54 | -117.6 |
FINANCING ACTIVITIES | |||
Intercompany account change | 0 | 0 | 0 |
Proceeds from term loans and other debt | 14.2 | 0 | 25.9 |
Payments on term loans and other debt | -6.6 | -4.2 | -3.7 |
Proceeds from revolving credit facility | 50.3 | 9.1 | 8.9 |
Dividend paid to parent | -10 | -10.7 | -1.5 |
Distribution of capital to shareholder | 0 | ||
Bank debt issue costs | 0 | 0 | -0.9 |
Income tax effect of suspended benefits from share-based compensation | 0 | 0 | 2.8 |
Income tax effect of share-based compensation exercises and vesting | 1.3 | 0.5 | 0.4 |
Capital contribution from parent | 0 | 0 | 10 |
Other | -1.3 | 0 | 0 |
Net cash provided (used) by financing activities | 47.9 | -5.3 | 41.9 |
Effect of exchange rate changes on cash | -2.8 | 0.9 | 0.3 |
Increase (decrease) in cash and cash equivalents | 4.6 | 1.3 | -18.9 |
Cash and cash equivalents at beginning of period | 43.7 | 42.4 | 61.3 |
Cash and cash equivalents at end of period | 48.3 | 43.7 | 42.4 |
Parent [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided (used) by operating activities | -21.2 | -38.1 | -46.8 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | -0.2 | -1 | 0.9 |
Proceeds from sale and leaseback transactions | 0 | 0 | |
Proceeds from sale of assets | 0 | 13.5 | 0 |
Business acquisitions, net of cash acquired | 0 | 0 | 0 |
Net cash used by investing activities | -0.2 | 12.5 | 0.9 |
FINANCING ACTIVITIES | |||
Intercompany account change | -30.7 | 30.3 | 3.8 |
Proceeds from term loans and other debt | 14.1 | 25 | |
Payments on term loans and other debt | -3.6 | -3.6 | -2.6 |
Proceeds from revolving credit facility | 50.3 | 9.1 | 8.9 |
Dividend paid to parent | -10 | -10.7 | -1.5 |
Distribution of capital to shareholder | 0 | ||
Bank debt issue costs | -0.9 | ||
Income tax effect of suspended benefits from share-based compensation | 2.8 | ||
Income tax effect of share-based compensation exercises and vesting | 1.3 | 0.5 | 0.4 |
Capital contribution from parent | 10 | ||
Other | 0 | ||
Net cash provided (used) by financing activities | 21.4 | 25.6 | 45.9 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided (used) by operating activities | 89.8 | 81.8 | 84.9 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | -8.3 | -23.8 | -25.2 |
Proceeds from sale and leaseback transactions | 7.4 | 5.9 | |
Proceeds from sale of assets | 2.1 | 0.7 | 0.4 |
Business acquisitions, net of cash acquired | -47.5 | -21.6 | -97 |
Net cash used by investing activities | -53.7 | -37.3 | -115.9 |
FINANCING ACTIVITIES | |||
Intercompany account change | -32.4 | -43.6 | 31.1 |
Proceeds from term loans and other debt | 0 | 0.9 | |
Payments on term loans and other debt | -0.6 | -0.4 | -0.9 |
Proceeds from revolving credit facility | 0 | 0 | 0 |
Dividend paid to parent | 0 | 0 | 0 |
Distribution of capital to shareholder | 0 | ||
Bank debt issue costs | 0 | ||
Income tax effect of suspended benefits from share-based compensation | 0 | ||
Income tax effect of share-based compensation exercises and vesting | 0 | 0 | 0 |
Capital contribution from parent | 0 | ||
Other | 0 | ||
Net cash provided (used) by financing activities | -33 | -44 | 31.1 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 3.1 | 0.5 | 0.1 |
Cash and cash equivalents at beginning of period | 0.7 | 0.2 | 0.1 |
Cash and cash equivalents at end of period | 3.8 | 0.7 | 0.2 |
Combined Non-Guarantor Subsidiaries [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided (used) by operating activities | 14.4 | 19.9 | 16 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | -17.3 | -5 | -2.6 |
Proceeds from sale and leaseback transactions | 0 | 0 | |
Proceeds from sale of assets | 0 | 13.5 | 0 |
Business acquisitions, net of cash acquired | -25.2 | -24.2 | 0 |
Net cash used by investing activities | -42.5 | -15.7 | -2.6 |
FINANCING ACTIVITIES | |||
Intercompany account change | 36 | -4.1 | -32.5 |
Proceeds from term loans and other debt | 0.1 | 0 | |
Payments on term loans and other debt | -2.4 | -0.2 | -0.2 |
Proceeds from revolving credit facility | 0 | 0 | 0 |
Dividend paid to parent | 0 | 0 | 0 |
Distribution of capital to shareholder | 0 | ||
Bank debt issue costs | 0 | ||
Income tax effect of suspended benefits from share-based compensation | 0 | ||
Income tax effect of share-based compensation exercises and vesting | 0 | 0 | 0 |
Capital contribution from parent | 0 | ||
Other | -1.3 | ||
Net cash provided (used) by financing activities | 32.4 | -4.3 | -32.7 |
Effect of exchange rate changes on cash | -2.8 | 0.9 | 0.3 |
Increase (decrease) in cash and cash equivalents | 1.5 | 0.8 | -19 |
Cash and cash equivalents at beginning of period | 43 | 42.2 | 61.2 |
Cash and cash equivalents at end of period | 44.5 | 43 | 42.2 |
Reclassifications/ Eliminations [Member] | |||
OPERATING ACTIVITIES | |||
Net cash provided (used) by operating activities | -27.1 | -3.9 | 2.4 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | 0 | 0 | 0 |
Proceeds from sale and leaseback transactions | 0 | 0 | |
Proceeds from sale of assets | 0 | -13.5 | 0 |
Business acquisitions, net of cash acquired | 0 | 0 | 0 |
Net cash used by investing activities | 0 | -13.5 | 0 |
FINANCING ACTIVITIES | |||
Intercompany account change | 27.1 | 17.4 | -2.4 |
Proceeds from term loans and other debt | 0 | 0 | |
Payments on term loans and other debt | 0 | 0 | 0 |
Proceeds from revolving credit facility | 0 | 0 | 0 |
Dividend paid to parent | 0 | 0 | 0 |
Distribution of capital to shareholder | 0 | ||
Bank debt issue costs | 0 | ||
Income tax effect of suspended benefits from share-based compensation | 0 | ||
Income tax effect of share-based compensation exercises and vesting | 0 | 0 | 0 |
Capital contribution from parent | 0 | ||
Other | 0 | ||
Net cash provided (used) by financing activities | 27.1 | 17.4 | -2.4 |
Effect of exchange rate changes on cash | 0 | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 | $0 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts and Reserves (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Trade receivable allowances [Member] | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | $3.70 | $3.50 | $5.50 |
Charged to Costs and Expenses | 0.3 | 1.8 | 1.8 |
Deductions and Other | 0.1 | -1.6 | -3.8 |
Balance at End of Period | 4.1 | 3.7 | 3.5 |
Inventory obsolescence reserve [Member] | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | 28.4 | 27.2 | 24.9 |
Charged to Costs and Expenses | 8.4 | 9.4 | 11.6 |
Deductions and Other | -6.9 | -8.2 | -9.3 |
Balance at End of Period | 29.9 | 28.4 | 27.2 |
Tax valuation allowances [Member] | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | 2.6 | 4.2 | 4.4 |
Charged to Costs and Expenses | -1.1 | -1.6 | -0.2 |
Deductions and Other | 5.6 | 0 | 0 |
Balance at End of Period | $7.10 | $2.60 | $4.20 |