Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 28, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PARK OHIO INDUSTRIES INC/OH | ||
Entity Central Index Key | 1,068,148 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 76.2 | $ 54.4 |
Accounts receivable, net | 242.6 | 194.4 |
Inventories, net | 282.8 | 240.6 |
Receivables from affiliates | 18.4 | 12.8 |
Other current assets | 60.9 | 53.3 |
Total current assets | 680.9 | 555.5 |
Property, plant and equipment, net | 179.5 | 169.6 |
Goodwill | 100.2 | 86.6 |
Intangible assets, net | 99.5 | 96.6 |
Pension assets | 74.3 | 61.7 |
Other long-term assets | 11.9 | 9.6 |
Total assets | 1,146.3 | 979.6 |
Current liabilities: | ||
Trade accounts payable | 173.7 | 133.7 |
Payables to affiliates | 7.1 | 7 |
Current portion of long-term debt and short-term debt | 17.7 | 30.8 |
Accrued employee compensation | 23 | 18.8 |
Other accrued expenses | 63 | 59.8 |
Total current liabilities | 284.5 | 250.1 |
Long-term liabilities, less current portion: | ||
Debt | 515.5 | 439 |
Deferred income taxes | 23.6 | 29 |
Other long-term liabilities | 30.7 | 29.8 |
Total long-term liabilities | 569.8 | 497.8 |
Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity: | ||
Common stock, par value $1 per share | 0 | 0 |
Additional paid-in capital | 114.9 | 106.3 |
Retained earnings | 182.9 | 158.1 |
Accumulated other comprehensive loss | (17.9) | (42.7) |
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 279.9 | 221.7 |
Noncontrolling interests | 12.1 | 10 |
Total equity | 292 | 231.7 |
Total liabilities and shareholder's equity | $ 1,146.3 | $ 979.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,412.9 | $ 1,276.9 | $ 1,463.8 | |
Cost of sales | 1,178.3 | 1,073.9 | 1,228.6 | |
Gross profit | 234.6 | 203 | 235.2 | |
Selling, general and administrative expenses | 146.9 | 128.9 | 134.4 | |
Litigation (settlement gains) judgment costs | $ (3.3) | (3.3) | 0 | 2.2 |
Asset impairment charges | 0 | 4 | 0 | |
Operating income | 91 | 70.1 | 98.6 | |
Interest expense | 31.5 | 28.2 | 27.9 | |
Loss on extinguishment of debt | 11 | 0 | 0 | |
Income before income taxes | 48.5 | 41.9 | 70.7 | |
Income tax expense | 17.7 | 9.2 | 21.5 | |
Net income | 30.8 | 32.7 | 49.2 | |
Net income attributable to noncontrolling interest | (1) | (0.5) | (0.6) | |
Net income attributable to ParkOhio common shareholder | $ 29.8 | $ 32.2 | $ 48.6 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 30.8 | $ 32.7 | $ 49.2 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 19.2 | (13.9) | (11.8) |
Pension and postretirement benefit adjustments, net of tax | 5.6 | 1.2 | (4.2) |
Total other comprehensive (loss) income | 24.8 | (12.7) | (16) |
Total comprehensive income, net of tax | 55.6 | 20 | 33.2 |
Comprehensive income attributable to noncontrolling interest | (1) | (0.5) | (0.6) |
Comprehensive income attributable to ParkOhio common shareholder | $ 54.6 | $ 19.5 | $ 32.6 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance at Dec. 31, 2014 | $ 177.9 | $ 0 | $ 88.6 | $ 97 | $ (14) | $ 6.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 33.2 | 48.6 | (16) | 0.6 | ||
Share-based compensation | 7.3 | 7.3 | ||||
Dividend paid to parent | (17) | (17) | ||||
Income tax effect of share-based compensation exercises and vesting | 0.9 | 0.9 | ||||
Ending balance at Dec. 31, 2015 | 202.3 | 0 | 96.8 | 128.6 | (30) | 6.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 20 | 32.2 | (12.7) | 0.5 | ||
Share-based compensation | 10.6 | 10.6 | ||||
Dividend paid to parent | (2.5) | (2.5) | ||||
Income tax effect of share-based compensation exercises and vesting | (0.6) | (0.6) | ||||
Acquisition | 2.1 | 2.1 | ||||
Other | (0.2) | (0.5) | (0.2) | 0.5 | ||
Ending balance at Dec. 31, 2016 | 231.7 | 0 | 106.3 | 158.1 | (42.7) | 10 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 55.6 | 29.8 | 24.8 | 1 | ||
Share-based compensation | 8.6 | 8.6 | ||||
Dividend paid to parent | (5) | (5) | ||||
Dividends | (0.6) | (0.6) | ||||
Acquisition | 1.7 | 1.7 | ||||
Ending balance at Dec. 31, 2017 | $ 292 | $ 0 | $ 114.9 | $ 182.9 | $ (17.9) | $ 12.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
OPERATING ACTIVITIES | |||
Net income | $ 30.8 | $ 32.7 | $ 49.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 31.5 | 29.6 | 27.9 |
Loss on extinguishment of debt | (11) | 0 | 0 |
Litigation settlement gain | (3.3) | 0 | 0 |
Share-based compensation | 8.6 | 10.6 | 7.3 |
Asset impairment charges | 0 | 4 | 0 |
Deferred income taxes | 6.4 | 2.1 | 3.1 |
Net impact of U.S. Tax Act | 3.3 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (25.1) | 13.7 | 3.8 |
Inventories | (19) | 8.6 | (15.4) |
Prepaid and other current assets | (4.2) | (5.5) | 8.8 |
Accounts payable and accrued expenses | 26 | (7.6) | (39.1) |
Litigation settlement payment | (4) | 0 | 0 |
Other noncurrent liabilities | (6.6) | (6.7) | (12.8) |
Other | (13.4) | (10) | 4.4 |
Net cash provided by operating activities | 42 | 71.5 | 37.2 |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (27.8) | (28.5) | (36.5) |
Business acquisitions, net of cash acquired | (39.7) | (23.4) | 0 |
Net cash used by investing activities | (67.5) | (51.9) | (36.5) |
FINANCING ACTIVITIES | |||
(Payments on) proceeds from revolving credit facility, net | (8.1) | (36.2) | 7.9 |
Payments on term loans and other debt | (31.3) | (4.5) | (4.7) |
Proceeds from other long-term debt | 0 | 34.9 | 3.4 |
Payments on capital lease facilities | 1.5 | 13.8 | |
Payments on capital lease facilities | (1.2) | ||
Issuance of 6.625% senior notes due 2027 | 350 | 0 | 0 |
Bank financing costs | (7.6) | 0 | 0 |
Redemption of 8.125% senior notes due 2021 | (250) | 0 | 0 |
Premium on early extinguishment of debt | (8) | 0 | 0 |
Dividend paid to parent | (5) | (2.5) | (17) |
Dividends | (0.6) | 0 | 0 |
Other | 0.7 | (2.6) | 0.9 |
Net cash provided (used) by financing activities | 41.6 | (12.1) | 4.3 |
Effect of exchange rate changes on cash | 5.7 | (1.5) | (4.9) |
Increase in cash and cash equivalents | 21.8 | 6 | 0.1 |
Cash and cash equivalents at beginning of year | 54.4 | 48.4 | 48.3 |
Cash and cash equivalents at end of year | 76.2 | 54.4 | 48.4 |
Income taxes paid | 11.3 | 8.7 | 19 |
Interest paid | $ 29.9 | $ 25.9 | $ 25.7 |
Consolidated Statements of Cas8
Consolidated Statements of Cash Flows (Parenthetical) - 8.125% senior notes due 2021 | Dec. 31, 2017 | Apr. 17, 2017 |
Senior notes, interest rate | 8.125% | |
Senior Notes 6.625% Due 2027 | ||
Senior notes, interest rate | 6.625% | 6.625% |
Senior Notes 8.125% Due 2021 | ||
Senior notes, interest rate | 8.125% |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation and Basis of Presentation: Park-Ohio Industries, Inc. (“ParkOhio,” “we” or the “Company”) is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. The Company leases certain real properties owned by related parties as described in Note 10. Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows. 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 in the consolidated financial statements. 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. 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 allowance for doubtful accounts was $4.5 million and $4.0 million at December 31, 2017 and 2016, respectfully. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history, as well as a general reserve based on historical trends and other information. During 2017 and 2016 , we sold approximately $80.0 million and $81.6 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 cash flows from operating activities in the Consolidated Statements of Cash Flows. In 2017 and 2016 , an expense in the amount of $0.6 million and $0.5 million , respectively, related to the discount on sale of accounts receivable is recorded in the Consolidated Statements of Income. Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or net realizable value. Major Classes of Inventories December 31, 2017 December 31, 2016 (In millions) Finished goods $ 171.3 $ 131.4 Work in process 43.9 43.4 Raw materials and supplies 67.6 65.8 Inventories, net $ 282.8 $ 240.6 Other inventory items Inventory reserves $ (29.8 ) $ (30.2 ) Consigned Inventory $ 9.8 $ 12.2 Property, Plant and Equipment: Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of assets are capitalized and expenditures for repairs and maintenance are charged to operations as incurred. Depreciation and amortization of fixed assets, including capital leases, is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 40 years for buildings, and one to 20 years for machinery and equipment (with the majority in the range of three to ten years). The following table summarizes property, plant and equipment: December 31, December 31, (In millions) Property, plant and equipment: Land and land improvements $ 11.5 $ 11.3 Buildings 76.1 77.0 Machinery and equipment 348.6 316.1 Leased property under capital leases 24.1 20.4 Total property, plant and equipment 460.3 424.8 Less accumulated depreciation 280.8 255.2 Property, plant and equipment, net $ 179.5 $ 169.6 Information regarding depreciation expense of property, plant and equipment follows: Year Ended December 31, 2017 2016 2015 (In millions) Depreciation expense $ 24.9 $ 23.5 $ 21.5 Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “ Intangibles — Goodwill and Other ” (“ASC 350”), goodwill and indefinite life intangible assets are not amortized, but rather are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be an indicator of impairment 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. Our reporting units have been identified at the component level. The Company completed its annual goodwill and indefinite-lived intangibles impairment testing as of October 1 of each year, noting no impairment. The Company uses an income approach, utilizing a discounted cash flow model based on forecasted cash flows and weighted average cost of capital, and other valuation techniques to determine fair value. See Notes 4 and 5 of the consolidated financial statements for additional disclosure on goodwill and indefinite-lived intangibles. Impairment of Other Long-Lived Assets: Other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. 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 6) approximate fair value at December 31, 2017 and December 31, 2016 because of the short-term nature of these instruments. The fair values of long-term debt and pension plan assets are disclosed in Note 6 and Note 11, respectively. The Company has not changed its valuation techniques for measuring fair value during 2017 , 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”). Share-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 grant date 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. Compensation expense of performance-based awards is recognized as an expense over the vesting periods of the awards using the accelerated attribution method once performance is deemed probable. Park-Ohio Holdings Corp. (“Holdings”) grants share-based compensation awards to Industries' employees. In accordance with ASC 718, such costs are allocated to Industries. Under the provisions of Holdings’ 2015 Equity and Incentive Compensation Plan (“2015 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. The 2015 Plan replaces in its entirety the 1998 Long-Term Incentive Plan, as amended (“1998 Plan”), but shares that remained available under the 1998 Plan were added to the aggregate share limit under that 2015 Plan. 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 value at the date of grant. The aggregate number of shares of Holdings' common stock that may be awarded under the 2015 Plan is 98,586 . 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 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. We follow this method since reasonably reliable estimates of revenue and costs of a contract can be made. Revenue earned on contracts in process that are in excess of billings is classified as unbilled contract revenues in Other current assets in the Consolidated Balance Sheet and totaled $40.1 million and $35.6 million at December 31, 2017 and 2016, respectively. Billings in excess of revenues earned on contracts in process are classified in Other accrued expenses in the Consolidated Balance Sheet and totaled $23.0 million and $22.7 million at December 31, 2017 and 2016, respectively. Cost of Sales : Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product; manufacturing labor, depreciation expense and direct overhead expense; and shipping and handling costs. 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, 2017 , the Company had uncollateralized receivables with six customers in the automotive industry, each with several locations, aggregating $ 42.7 million , which represented approximately 18% of the Company’s trade accounts receivable. During 2017 , sales to these customers amounted to approximately $ 291.3 million , which represented approximately 21% of the Company’s net sales. Environmental: The Company expenses 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 and is undiscounted. 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 other comprehensive income (loss) in shareholder's equity. Gains and losses resulting from foreign currency translations, including intercompany transactions that are not considered permanent investments, are included in the Consolidated Statements of Income. Warranties: 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: Year Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 7.1 $ 6.1 $ 6.9 Claims paid during the year (4.0 ) (3.7 ) (4.7 ) Warranty expense 4.7 2.0 4.0 Acquired warranty liabilities 0.1 2.8 — Other — (0.1 ) (0.1 ) Balance at December 31, $ 7.9 $ 7.1 $ 6.1 Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The Company adopted this ASU effective January 1, 2017. ASU 2016-09 requires prospective recognition of excess tax benefits and deficiencies resulting from share-based compensation awards vesting and exercises be recognized as a discrete income tax adjustment in the income statement. Previously, these amounts were recognized in Additional paid-in capital. In 2017, the Company recognized income tax expense of $0.2 million for excess tax deficiencies upon vesting of awards. In addition, ASU 2016-09 requires excess tax benefits and shortfalls to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares. ASU 2016-09 also requires that excess tax benefits from share-based compensation awards be reported as operating activities in the Consolidated Statements of Cash Flows. Previously, this activity was included in financing activities on the Consolidated Statements of Cash Flows. The Company has elected to apply this change on a prospective basis. This change has an immaterial impact on our Consolidated Statements of Cash Flows. Also, we elected to continue to estimate forfeitures rather than account for them as they occur. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment." The amendments in the ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted this guidance for its October 1, 2017 impairment test. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, a comprehensive new revenue recognition standard that will supersede existing guidance under U.S. GAAP. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Our implementation efforts included the identification of revenue within the scope of the standard, the evaluation of revenue contracts under the guidance, and assessing the impacts of the new standard on our financial statements. The new standard is effective for the Company for the first quarter of 2018, and we will utilize the modified retrospective method of adoption. This method allows companies to record a one-time adjustment to beginning retained earnings as of January 1, 2018 for the cumulative effect that the standard will have on open contracts at the date of adoption. During our implementation, we identified certain contracts which will require over time recognition under the new standard, either as goods are manufactured or services are performed, rather than at the time of shipment or completion as we do under existing guidance. Upon adoption, we expect to accelerate approximately $13 million to $17 million of revenue, resulting in a cumulative-effect adjustment of approximately $2 million to $4 million to our 2018 beginning retained earnings. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Board also is addressing measurement of credit losses on financial assets in a separate project. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The new guidance will be applied prospectively and is expected to have an immaterial impact on the financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The amendment establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. This ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. The Company is currently evaluating the impact of adopting this guidance. In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The Company will adopt this standard on the required date of January 1, 2018. The Company is currently evaluating the impact of adopting this guidance. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Segments
Segments | 12 Months Ended |
Dec. 31, 2017 | |
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. 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, and 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. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs, certain non-cash charges and interest expense. Results by business segment were as follows: Year Ended December 31, 2017 2016 2015 (In millions) Net sales: Supply Technologies $ 561.8 $ 502.1 $ 578.7 Assembly Components 524.5 529.4 569.2 Engineered Products 326.6 245.4 315.9 $ 1,412.9 $ 1,276.9 $ 1,463.8 Segment operating income: Supply Technologies $ 45.9 $ 40.0 $ 50.3 Assembly Components 50.4 50.5 57.9 Engineered Products 20.7 10.6 20.9 Total segment operating income 117.0 101.1 129.1 Corporate costs (29.3 ) (27.0 ) (28.3 ) Asset impairment charge — (4.0 ) — Litigation settlement gains (judgment costs) 3.3 — (2.2 ) Operating income 91.0 70.1 98.6 Interest expense (31.5 ) (28.2 ) (27.9 ) Loss on extinguishment of debt (11.0 ) — — Income before income taxes $ 48.5 $ 41.9 $ 70.7 Year Ended December 31, 2017 2016 2015 (In millions) Capital expenditures: Supply Technologies $ 3.3 $ 6.1 $ 3.7 Assembly Components 18.6 16.9 27.3 Engineered Products 5.7 5.5 5.5 Corporate 0.2 — — $ 27.8 $ 28.5 $ 36.5 Depreciation and amortization expense: Supply Technologies $ 4.7 $ 4.7 $ 4.7 Assembly Components 20.7 20.1 18.6 Engineered Products 5.6 4.1 4.2 Corporate 0.5 0.4 0.4 $ 31.5 $ 29.6 $ 27.9 Identifiable assets: Supply Technologies $ 344.4 $ 262.0 $ 276.3 Assembly Components 351.4 332.9 344.8 Engineered Products 353.6 304.9 243.1 Corporate 96.9 79.8 75.4 $ 1,146.3 $ 979.6 $ 939.6 The percentage of net sales by product line included in each segment was as follows: Year Ended December 31, 2017 2016 2015 Supply Technologies: Supply Technologies 85 % 85 % 87 % Engineered specialty products 15 % 15 % 13 % 100 % 100 % 100 % Assembly Components: Fuel related, rubber and plastic products 70 % 67 % 59 % Aluminum products 30 % 33 % 41 % 100 % 100 % 100 % Engineered Products: Industrial equipment business 84 % 79 % 81 % Forged and machined products 16 % 21 % 19 % 100 % 100 % 100 % The Company’s approximate percentage of net sales by geographic region was as follows: Year Ended December 31, 2017 2016 2015 United States 65 % 71 % 72 % Europe 10 % 8 % 7 % Asia 9 % 8 % 8 % Mexico 8 % 6 % 6 % Canada 7 % 6 % 6 % Other 1 % 1 % 1 % 100 % 100 % 100 % The basis for attributing revenue to individual geographic regions is customer location. At December 31, 2017 , 2016 and 2015 , approximately 65% , 68% and 71% , respectively, of the Company’s assets were located in the United States. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 28, 2017, the Company acquired Aero-Missile Components Inc. (“AMC”). AMC, which is included in our Supply Technologies segment, is a supply chain management business providing high-quality specialty fasteners and other components to the defense and aerospace markets in the United States. On October 3, 2017, the Company completed the acquisition of Heads & All Threads Ltd. (“HAT”). HAT, which is included in our Supply Technologies segment, is a leading European supplier of supply chain management services specializing in developing vendor-managed inventory programs of fasteners, machined parts and other class C components to various industrial end markets. On December 29, 2017, the Company completed the acquisition of an injection molding business. The acquisition, which is included in our Assembly Components segment, is a manufacturer of precision-molded rubber components for several industrial markets. The results of operations of the 2017 acquisitions are included our consolidated results from their respective acquisition dates. Collectively, the 2017 acquisitions contributed $18.5 million of sales for the year ended December 31, 2017. The combined purchase price of the 2017 acquisitions was $39.7 million , net of cash acquired. The purchase price allocations for the 2017 acquisitions are preliminary as of December 31, 2017, subject to finalization of the Company’s determination of the value of the assets acquired and liabilities assumed, which is expected to be completed as soon as practicable but no later than twelve months after the respective acquisition dates. Goodwill of $8.4 million and intangibles of $2.0 million are recorded in the December 31, 2017 consolidated balance sheet related to the 2017 acquisitions. In December 2016, the Company acquired all the outstanding capital stock of GH Electrotermia S.A. (“GH”), headquartered in Valencia, Spain, for $23.4 million in cash (net of $6.3 million cash acquired), plus the assumption of $13.9 million in debt. The Company finalized its valuation of the assets acquired and liabilities assumed during 2017. The purchase agreement stipulated potential contingent consideration of up to $2.1 million based on achievement of earnings before interest, taxes, depreciation and amortization (“EBITDA”) targets for 2016 and 2017. The EBITDA targets were not achieved, and therefore no contingent consideration was paid to the seller. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill by reportable segment are as follows: Supply Technologies Assembly Components Engineered Products Total (In millions) Balance at January 1, 2015 $ 7.6 $ 54.0 $ 27.9 $ 89.5 Acquisition adjustments — 0.1 (6.3 ) (6.2 ) Foreign currency translation (0.4 ) — (0.9 ) (1.3 ) Balance at December 31, 2015 7.2 54.1 20.7 82.0 GH acquisition — — 6.1 6.1 Foreign currency translation (1.1 ) — (0.4 ) (1.5 ) Balance at December 31, 2016 6.1 54.1 26.4 86.6 Acquisitions and adjustments 8.4 — 1.5 9.9 Foreign currency translation 0.9 — 2.8 3.7 Balance at December 31, 2017 $ 15.4 $ 54.1 $ 30.7 $ 100.2 A portion of the goodwill associated with the GH acquisition is deductible for income tax purposes. Goodwill associated with the 2017 acquisitions is not deductible for income tax purposes. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other Intangible Assets December 31, 2017 December 31, 2016 Weighted Average Useful Life (Years) Gross Value Accumulated Net Value Gross Value Accumulated Net Value (In millions) Customer relationships 9.2 $ 83.4 $ 29.3 $ 54.1 $ 75.5 $ 23.7 $ 51.8 Indefinite-lived tradenames * 23.7 * 23.7 22.4 * 22.4 Technology 17.5 23.6 3.0 20.6 23.0 1.8 21.2 Other 7.2 4.1 3.0 1.1 4.0 2.8 1.2 Total $ 134.8 $ 35.3 $ 99.5 $ 124.9 $ 28.3 $ 96.6 * Not applicable, as these tradenames have an indefinite life. As part of HAT acquisition, we acquired approximately $2.0 million of customer relationships. As described in Note 3, the fair value of this intangible asset is subject to finalization of its fair value analysis, expected to be completed not later than twelve months after the acquisition date. As part of the GH acquisition, we acquired approximately $3.6 million of customer relationships, $4.8 million of tradenames and $6.5 million of technology. Amortization expense of other intangible assets follows: Year Ended December 31, 2017 2016 2015 (In millions) Amortization expense $ 6.6 $ 6.1 $ 6.4 We estimate amortization expense for the five years subsequent to December 31, 2017 as follows: (In millions) 2018 $ 6.8 2019 $ 6.4 2020 $ 6.2 2021 $ 6.2 2022 $ 6.2 |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Long-term debt consists of the following: Carrying Value at Maturity Date Interest Rate at December 31, 2017 December 31, 2017 December 31, 2016 (In millions) Senior Notes due 2027 April 15, 2027 6.625 % $ 350.0 $ — Senior Notes due 2021 April 1, 2021 8.125 % — 250.0 Revolving credit facility April 17, 2022 3.30 % 124.7 132.8 Term loan — 23.4 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 27.0 26.4 Capital leases Various Various 20.3 18.8 Other Various Various 19.9 23.6 Gross debt 541.9 475.0 Less current portion of long-term debt (15.4 ) (25.8 ) Less short-term debt (2.3 ) (5.0 ) Less unamortized debt issuance costs (8.7 ) (5.2 ) Total long-term debt, net $ 515.5 $ 439.0 On April 17, 2017, ParkOhio completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). Interest on the Notes is payable semi-annually in arrears on April 15 and October 15 of each year, and the Notes mature on April 15, 2027. The Notes are unsecured senior obligations of ParkOhio and are guaranteed on an unsecured senior basis by the 100% owned material domestic subsidiaries of ParkOhio. Proceeds from the Notes issuance were used to repay in full the previously-outstanding 8.125% Senior Notes due 2021 in the aggregate principal amount of $250.0 million , the term loan and a portion of the borrowings outstanding under the revolving credit facility. 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 Senior 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, 2017, the Company was in compliance with all financial covenants of the Credit Agreement. On April 17, 2017, ParkOhio also entered into a seventh amended and restated credit agreement (the “Amended Credit Agreement”) with a group of banks to increase the revolving credit facility to $350.0 million and extend the maturity date of borrowings under the facility to April 17, 2022. Furthermore, ParkOhio has the option, pursuant to the Amended Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million . As of December 31, 2017, $112.7 million was borrowed on the U.S. portion of the facility; $12.0 million of an available $25.0 million was borrowed on the European sub-limit portion of the facility; and the Company had approximately $194.2 million of unused borrowing capacity under the revolving credit facility. None of the available $35.0 million of the Canadian sub-limit has been borrowed as of December 31, 2017. In connection with the April 2017 repurchase of Senior Notes due 2021 and amendment of our credit agreement, we recorded an $11.0 million loss on extinguishment of debt, representing premiums paid on early extinguishment of $8.0 million , the write-off of unamortized prior debt issuance costs of $2.5 million , and related fees and expenses of $0.5 million . On December 21, 2016, the Company, through its subsidiary, IEGE Industrial Equipment Holding Company Limited, entered into a financing agreement with Banco Bilbao Vizcaya Argentaria, S.A. The financing agreement provides the Company a loan up to $27.0 million as of December 31, 2017, as well as a revolving credit facility for up to $12.1 million to fund working capital and general corporate needs. The full $27.0 million loan is outstanding as of December 31, 2017. No amounts have been drawn on the revolving credit facility as of December 31, 2017. On October 21, 2015, the Company, through its subsidiary, Southwest Steel Processing LLC, entered into a financing agreement with the Arkansas Development Finance Authority. The agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The loan matures in September 2025. The Company has borrowed $5.3 million under this agreement as of December 31, 2017. On August 13, 2015, the Company entered into a capital lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for capital leases. Capital lease obligations of $20.3 million were borrowed under the Lease Agreement as of December 31, 2017 to acquire machinery and equipment. See Note 10 for additional disclosure. The following table represents fair value information of the Notes, classified as Level 1, at December 31, 2017 and 2016. The fair value was estimated using quoted market prices. December 31, 2017 (In millions) Carrying amount $ 350.0 Fair value $ 380.6 Maturities of short-term and long-term debt, excluding capital leases, during each of the five years subsequent to December 31, 2017 are as follows: (In millions) 2018 $ 8.6 2019 $ 9.8 2020 $ 9.5 2021 $ 15.3 2022 $ 125.9 Foreign subsidiaries of the Company had $40.2 million of borrowings at December 31, 2017 and $42.4 million at December 31, 2016 and outstanding bank guarantees of approximately $ 15.1 million at December 31, 2017 under their credit arrangements. The weighted average interest rate on all debt was 6.11% at December 31, 2017 and 6.10% at December 31, 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes consists of the following: Year Ended December 31, 2017 2016 2015 (In millions) United States $ 22.2 $ 16.3 $ 44.9 Outside the United States 26.3 25.6 25.8 $ 48.5 $ 41.9 $ 70.7 Income taxes consists of the following: Year Ended December 31, 2017 2016 2015 (In millions) Current expense (benefit): Federal $ 14.0 $ 0.3 $ 11.7 State 0.6 0.2 0.7 Foreign 7.6 6.6 6.0 22.2 7.1 18.4 Deferred expense (benefit): Federal (5.5 ) 0.9 2.9 State 0.3 0.5 0.6 Foreign 0.7 0.7 (0.4 ) (4.5 ) 2.1 3.1 Income tax expense $ 17.7 $ 9.2 $ 21.5 The Tax Cuts and Jobs Act (the “U.S. Tax Act”) was enacted on December 22, 2017. The Tax Act reduces the US federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Tax Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. At December 31, 2017, we have not completed our accounting for the tax effects of enactment of the Tax Act; however, in certain cases, as described below, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. For the items for which we were able to determine a reasonable estimate, we recognized a net provisional amount of $3.3 million , which is included as a component of income tax expense. In all cases, we will continue to make and refine our calculations as additional analysis is completed. In addition, our estimates may also be affected as we gain a more thorough understanding of the tax law. Provisional amounts Deferred tax assets and liabilities: We remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. The provisional amount recorded related to the remeasurement of our deferred tax balance was a tax benefit of $10.9 million . The one-time transition tax is based on our total post-1986 earnings and profits (E&P) that we previously deferred from US income taxes. We recorded a provisional amount for our one-time transition tax liability for each of our foreign subsidiaries, resulting in an increase in income tax expense of $14.2 million . We have not yet completed our calculation of the total post-1986 E&P for these foreign subsidiaries. Further, the transition tax is based in part on the amount of those earnings held in cash and other specified assets. This amount may change when we finalize the calculation of post-1986 foreign E&P previously deferred from US federal taxation and finalize the amounts held in cash or other specified assets. A reconciliation of income tax expense computed by applying the statutory federal income tax rate to income before income taxes as recorded is as follows: Year Ended December 31, 2017 2016 2015 (In millions) Tax at U.S. statutory rate $ 16.9 $ 14.7 $ 24.7 Effect of state income taxes, net 0.7 0.2 0.6 Effect of foreign operations (5.2 ) (2.1 ) (1.6 ) Valuation allowance 5.3 0.5 (0.7 ) Uncertain tax positions (2.0 ) (4.0 ) 0.1 Non-deductible items 0.5 0.6 0.5 Non-deductible compensation 0.4 0.8 1.2 Manufacturer's deduction (0.8 ) (0.5 ) (1.1 ) Net impact of U.S. Tax Act 3.3 — — Other, net (1.4 ) (1.0 ) (2.2 ) Total $ 17.7 $ 9.2 $ 21.5 Significant components of the Company’s net deferred income tax assets and liabilities are as follows: Year Ended December 31, 2017 2016 (In millions) Deferred income tax assets: Postretirement benefit obligation $ 2.0 $ 3.6 Inventory 9.9 13.7 Net operating loss and credit carryforwards 16.1 10.8 Warranty reserve 0.4 2.1 Accrued litigation 0.1 2.8 Compensation 4.2 4.1 Other 4.9 9.8 Total deferred income tax assets 37.6 46.9 Deferred income tax liabilities: Depreciation and amortization 10.4 16.0 Pension 16.3 22.1 Intangible assets 16.6 23.3 Other 3.3 5.2 Total deferred income tax liabilities 46.6 66.6 Net deferred income tax liabilities prior to valuation allowances (9.0 ) (19.7 ) Valuation allowances (11.6 ) (5.3 ) Net deferred income tax liability $ (20.6 ) $ (25.0 ) At December 31, 2017 , the Company has U.S., state and foreign net operating loss carryforwards and U.S. foreign tax credit carryforwards for income tax purposes. The foreign net operating loss carryforward is $32.4 million , of which $7.9 million expires between 2018 and 2037 and the remainder has no expiration date. The Company has a tax benefit from a state net operating loss carryforward of $2.1 million that expires between 2018 and 2037 . The Company also has a tax benefit from a non-consolidated U.S. net operating loss carryforward of $1.1 million that expires between 2035 and 2036. The foreign tax credit carryforward is $3.1 million and expires in 2027. As of December 31, 2017 and 2016 , 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. During the years ended December 31, 2017 and 2016 , the Company recorded valuation allowances of $6.3 million and $4.5 million , respectively, against certain foreign net deferred tax assets and the U.S. foreign tax credits. 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: 2017 2016 2015 (In millions) Unrecognized Tax Benefit — January 1, $ 2.9 $ 6.3 $ 6.5 Gross Increases to Tax Positions Related to Current Year 0.1 — — Gross Increases to Tax Positions Related to Prior Years 0.6 0.3 0.3 Gross Decreases to Tax Positions Related to Prior Years — — (0.1 ) Gross Decreases Related to Settlements with Taxing Authorities (0.4 ) — — Expiration of Statute of Limitations (1.9 ) (3.7 ) (0.4 ) Other (0.1 ) — — Unrecognized Tax Benefit — December 31, $ 1.2 $ 2.9 $ 6.3 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $0.9 million at December 31, 2017 and $2.4 million at December 31, 2016. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2017 and 2016, the Company recognized approximately $(0.3) million and $(1.4) million , respectively, in net interest and penalties. The Company had approximately $0.2 million and $0.4 million for the payment of interest and penalties accrued at December 31, 2017 and 2016, respectively. It is reasonably possible that within the next twelve months the amount of gross unrecognized tax benefits could be reduced by approximately $0.1 million as a result of the closure of tax statutes related to existing uncertain tax positions. The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company’s tax years for 2014 through 2017 remain open for examination by the Internal Revenue Service and 2013 through 2017 remain open for examination by various state and foreign taxing authorities. As a result of the Tax Act, the Company’s net unremitted foreign earnings of $136.0 million have been subject to U.S. taxation. We are currently analyzing our global working capital and cash requirements and the potential tax liabilities attributable to a repatriation, including calculating any excess of the amount for financial reporting over the tax basis in our foreign subsidiaries, but we have yet to determine whether we plan to change our prior assertion and repatriate earnings. Accordingly, we have not recorded any deferred taxes attributable to our investments in our foreign subsidiaries. We will record the tax effects of any change in our prior assertion in the period that we complete our analysis and are able to make a reasonable estimate, and disclose any unrecognized deferred tax liability for temporary differences related to our foreign investments, if practicable. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Share-Based Compensation A summary of Holdings' stock option activity for 2017 is presented below: 2017 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in whole shares) (in millions) Outstanding — beginning of year 38,000 $ 19.30 Granted — — Exercised (38,000 ) 19.30 Canceled or expired — — Outstanding — end of year — $ — 0.0 $ — Options exercisable — $ — 0.0 $ — During the years ended December 31, 2017, 2016 and 2015, net cash proceeds from the exercise of stock options were $0.7 million , $0.5 million and $1.2 million , respectively. A summary of Holdings' restricted share and performance share activity for the year ended December 31, 2017 is as follows: 2017 Time-Based Performance-Based Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (in whole shares) (in whole shares) Outstanding — beginning of year 216,916 $ 36.94 165,000 $ 34.78 Granted (a) 105,670 38.48 165,000 38.10 Vested (87,727 ) 44.78 (55,000 ) 34.78 Performance- to time-based (b) 110,000 34.78 (110,000 ) 34.78 Canceled or expired (2,000 ) 37.87 — — Outstanding — end of year 342,859 $ 34.71 165,000 $ 38.10 (a) Included in the granted amount are 4,390 restricted share units (b) During the second quarter of 2017, 55,000 of the performance-based restricted shares granted in 2016 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 110,000 shares became time-based, vesting over the remaining two years of the requisite service period. The Company recognized compensation expense of $8.6 million , $10.6 million and $7.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, relating to time-based shares and performance-based shares. The total fair value of restricted shares and share units that vested during the years ended December 31, 2017 , 2016 and 2015 was $7.0 million , $5.1 million and $9.0 million , respectively. As of December 31, 2017 , the Company had unrecognized compensation expense of $9.3 million , related to restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of 1.7 years . The number of shares available for future grants for all Holdings' plans at December 31, 2017 is 98,586 . |
Commitments, Contingencies and
Commitments, Contingencies and Litigation Settlement | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Litigation Settlement | Commitments, Contingencies and Litigation Settlement 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 ParkOhio, 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 $10.0 million in damages plus an unspecified amount of punitive damages. In September 2013, the district court issued a judgment in favor of IPSCO in the amount of $5.2 million , which the Company recognized and accrued for at that time. In March 2016, the district court issued an order granting, in part, IPSCO's motion for fees and costs and awarding $2.2 million to IPSCO, which the Company accrued for as of December 31, 2015. ATM filed a third appeal of that decision. On March 28, 2017, the Company and IPSCO agreed to a settlement and release of all claims for the payment by the Company of $4.0 million to IPSCO, which was made in March 2017. As of the settlement date, the Company had $7.3 million accrued for this matter. The Company reversed the excess liability and recognized $3.3 million in income in the first quarter of 2017. In August 2013, the Company received a subpoena from the staff of the Securities and Exchange Commission (“SEC”) in connection with the staff’s investigation of a third party. At that time, the Company also learned that the U.S. 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. Holdings' Board of Directors formed a special committee to review the Company's transactions with the third party and to make any recommendations to the Holdings' 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. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Lease Arrangements | Lease Arrangements Future minimum lease commitments during each of the five years following December 31, 2017 and thereafter are as follows: (In millions) Capital Leases Operating leases 2018 $ 9.4 $ 17.8 2019 5.9 13.5 2020 4.3 8.9 2021 1.3 5.8 2022 0.1 4.8 Thereafter — 13.3 Total minimum lease payments 21.0 $ 64.1 Amounts representing interest (0.7 ) Present value of minimum lease payments 20.3 Current maturities (9.1 ) Long-term capital lease obligation $ 11.2 Rental expense for 2017 , 2016 and 2015 was $19.4 million , $18.5 million and $19.7 million , respectively. Certain of the Company’s leases are with related parties at an annual rental expense of approximately $2.2 million . Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows. Assets recorded under capital leases are included in property, plant and equipment and consist of the following: December 31, 2017 December 31, 2016 Machinery and equipment $ 24.1 $ 20.4 Less accumulated depreciation (4.7 ) (2.3 ) $ 19.4 $ 18.1 Amortization of machinery and equipment under capital leases is included in depreciation expense. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [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. One of its defined benefit plans, covering most U.S. employees not covered by collective bargaining agreements, utilizes a cash balance formula. 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 Company's objective for the pension plan is to monitor the funded ratio; create general investment goals in regards to acceptable risk and liquidity needs ensuring the long-term interests of participants and beneficiaries are considered and manage risk by minimizing the short-term and long-term risk of actual expenses and contribution requirements. The following tables set forth the changes 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, 2017 and 2016 : Pension Benefits Postretirement Benefits 2017 2016 2017 2016 (In millions) Change in benefit obligation Benefit obligation at beginning of year $ 58.5 $ 58.4 $ 10.0 $ 13.5 Service cost 2.4 2.4 — — Interest cost 1.8 1.8 0.3 0.3 Actuarial losses (gains) 2.4 0.5 0.5 (2.6 ) Benefits and expenses paid (4.6 ) (4.6 ) (1.5 ) (1.2 ) Benefit obligation at end of year $ 60.5 $ 58.5 $ 9.3 $ 10.0 Change in plan assets Fair value of plan assets at beginning of year $ 120.2 $ 117.3 $ — $ — Actual return on plan assets 20.2 8.3 — — Company contributions — — 1.5 1.2 Cash transfer to fund postretirement benefit payments (1.0 ) (0.8 ) — — Benefits and expenses paid (4.6 ) (4.6 ) (1.5 ) (1.2 ) Fair value of plan assets at end of year $ 134.8 $ 120.2 $ — $ — Funded (underfunded) status of the plans $ 74.3 $ 61.7 $ (9.3 ) $ (10.0 ) Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits 2017 2016 2017 2016 (In millions) Pension assets $ 74.3 $ 61.7 $ — $ — Other current liabilities — — 1.1 1.2 Other long-term liabilities — — 8.2 8.8 $ 74.3 $ 61.7 $ 9.3 $ 10.0 Amounts recognized in Accumulated other comprehensive loss Net actuarial loss $ 16.5 $ 25.8 $ 2.1 $ 1.7 Net prior service cost (credit) 0.3 0.3 (0.1 ) (0.2 ) Accumulated other comprehensive loss $ 16.8 $ 26.1 $ 2.0 $ 1.5 The pension plan weighted-average asset allocation at December 31, 2017 and 2016 and target allocation for 2018 are as follows: Plan Assets Target 2018 2017 2016 Asset Category Equity securities 45-75% 65.0 % 61.9 % Debt securities 20-40% 23.6 % 24.6 % Other 0-20% 11.4 % 13.5 % 100% 100 % 100 % The following table sets forth, by level within the fair value hierarchy, the pension plans assets: 2017 2016 Level 1 Total (at Fair Value) Level 1 Total (at Fair Value) (In millions) Common stock $ 41.8 $ 41.8 $ 40.0 $ 40.0 Equity securities 39.8 39.8 29.0 29.0 Foreign stock 7.3 7.3 5.4 5.4 U.S. Government obligations 5.8 5.8 8.1 8.1 Fixed income securities 13.7 13.7 14.1 14.1 Corporate Bonds 10.2 10.2 6.3 6.3 Cash and cash equivalents 1.4 1.4 3.3 3.3 Total $ 120.0 $ 106.2 Investments measured at net asset value: Common collective trusts 0.7 1.1 Hedge funds 14.1 12.9 Total assets at fair value $ 134.8 $ 120.2 Valuation Methodologies: Following is a description of the valuation methodologies used for pension plan assets measured at fair value. There have been no changes in the methodologies used at December 31, 2017 and 2016. Common stock, equity securities and foreign stock - These securities consist of direct investments in the stock of publicly-traded companies. Such investments are valued based on the closing price reported in an active market on which the individual securities are traded. As such, the direct investments are classified as Level 1. U.S. Government obligations, fixed income securities and corporate bonds - Valued at the closing price of each security. Cash equivalents - Consists of primarily money market funds and certificates of deposit, for which book value equals fair value. Common collective trusts - Valued at the net unit value of units held by the trust at year end. The unit value is determined by the total value of fund assets divided by the total number of units of the fund owned. The equity investments in collective trusts are predominantly in index funds for which the underlying securities are actively traded in public markets based upon readily measurable prices. Common collective trusts are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets. Hedge funds - Consists of direct investments in hedge funds through limited partnership interests. Net asset values are based on the estimated fair value of the ownership interest in the investment as determined by the General Partner. The majority of the holdings of the hedge funds are in equity securities traded on public exchanges. The investment terms of the hedge funds allow capital to be redeemed quarterly given prior notice with certain limitations. Hedge funds measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy and are being presented in the tables above to permit a reconciliation of the fair value hierarchy to the total plan assets. For additional information regarding fair value measurements, see Note 1. The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31 and the measurement of the net periodic benefit cost in the following year. The Company used a spot rate approach by applying the specific spot rates along the yield curve to the relevant projected cash flows in the estimation of the service and interest components of benefit cost. Weighted-Average assumptions as of December 31, Pension Benefits Postretirement Benefits 2017 2016 2015 2017 2016 2015 Assumptions used to determine benefit obligation at year-end Discount rate 3.52 % 3.91 % 4.13 % 3.32 % 3.63 % 3.80 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Health care cost trend rate N/A N/A N/A 6.50 % 6.50 % 6.75 % Ultimate health care cost trend rate N/A N/A N/A 5.00 % 5.00 % 5.00 % Year of ultimate trend rate N/A N/A N/A 2025 2025 2022 Assumptions used to determine expense Discount rate for benefit obligations 3.90 % 4.13 % 3.82 % 3.61 % 3.76 % 3.60 % Discount rate for service costs 3.98 % 4.20 % 3.82 % 4.24 % 4.44 % 3.60 % Discount rate for interest costs 3.20 % 3.27 % 3.82 % 2.90 % 2.89 % 3.60 % Expected return on plan assets 8.25 % 8.25 % 8.25 % N/A N/A N/A Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Medical health care benefits rate increase N/A N/A N/A 6.50 % 6.50 % 6.75 % Medical drug benefits rate increase N/A N/A N/A 6.50 % 6.50 % 6.75 % Ultimate health care cost trend rate N/A N/A N/A 5.00 % 5.00 % 5.00 % Year of ultimate trend rate N/A N/A N/A 2025 2025 2022 In determining its expected return on plan assets assumption for the year ended December 31, 2017 , 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. 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 2017 2016 2015 2017 2016 2015 (In millions) Components of net periodic benefit cost Service costs $ 2.4 $ 2.4 $ 2.6 $ — $ — $ — Interest costs 1.8 1.8 2.3 0.3 0.3 0.6 Expected return on plan assets (9.7 ) (9.4 ) (10.2 ) — — — Amortization of prior service cost (credit) — — — (0.1 ) (0.1 ) (0.1 ) Recognized net actuarial loss 1.2 1.1 0.3 0.1 0.1 0.5 Benefit (income) costs $ (4.3 ) $ (4.1 ) $ (5.0 ) $ 0.3 $ 0.3 $ 1.0 Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss AOCI at beginning of year $ 26.1 $ 25.5 $ 15.7 $ 1.5 $ 4.1 $ 7.2 Net (loss) gain arising during the year (1.1 ) 1.7 10.1 0.5 (2.6 ) (2.7 ) Recognition of prior service credit — — — 0.1 0.1 0.1 Recognition of actuarial loss (8.2 ) (1.1 ) (0.3 ) (0.1 ) (0.1 ) (0.5 ) Total recognized in accumulated other comprehensive loss at end of year $ 16.8 $ 26.1 $ 25.5 $ 2.0 $ 1.5 $ 4.1 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, 2018 is $0.3 million . 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, 2018 is less than $ 0.1 million . 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 Medicare Subsidy Net including Medicare Subsidy (In millions) 2018 $ 5.1 $ 1.2 $ 1.1 $ 0.1 2019 4.4 1.1 1.0 0.1 2020 4.5 1.0 0.9 0.1 2021 4.6 0.9 0.8 0.1 2022 4.4 0.9 0.8 0.1 2023 to 2027 22.8 3.6 3.2 0.4 The Company expects to make no contributions to its defined benefit plans in 2018 and beyond, as pension benefits are expected to be paid out of plan assets and postretirement benefits are paid directly by the Company. Under the postretirement benefit 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 Point Increase 1-Percentage Point Decrease (In millions) Effect on total of service and interest cost components in 2017 $ — $ — Effect on postretirement benefit obligation as of December 31, 2017 $ 0.6 $ (0.6 ) In January 2008, a Supplemental Executive Retirement Plan (“SERP”) for the Company’s Chairman 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 SERP that is equal to the ratio of (1) his credited service with the Company prior to January 1, 2008 (up to a maximum of thirteen years), plus his credited service after January 1, 2008 (up to a maximum of seven years); to (2) 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 SERP. The Company recorded income of $0.2 million in 2017 and 2016 and expense of $0.6 million in 2015 related to the SERP. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 , and 2015 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Balance at January 1, 2015 $ (5.1 ) $ (8.9 ) $ (14.0 ) Foreign currency translation adjustments (a) (11.8 ) — (11.8 ) Pension and OPEB activity, net of tax adjustments(b) — (4.2 ) (4.2 ) Balance at December 31, 2015 (16.9 ) (13.1 ) (30.0 ) Foreign currency translation adjustments (a) (13.9 ) — (13.9 ) Pension and OPEB activity, net of tax adjustments(b) — 1.2 1.2 Balance at December 31, 2016 (30.8 ) (11.9 ) (42.7 ) Foreign currency translation adjustments (a) 19.2 — 19.2 Pension and OPEB activity, net of tax adjustments(b) — 5.6 5.6 Balance at December 31, 2017 $ (11.6 ) $ (6.3 ) $ (17.9 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. (b) 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, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On February 1, 2018, the Company completed the acquisition of Canton Drop Forge, Inc. ("CDF"). CDF is headquartered in Canton, Ohio and will be part of our Forged and Machined Products group within the Engineered Products segment. CDF manufactures forgings for high-performance applications in the international aerospace and other markets. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 12 Months Ended |
Dec. 31, 2017 | |
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 Senior 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 Senior 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 Senior 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). The following supplemental condensed consolidating financial statements present condensed consolidating balance sheets as of December 31, 2017 and December 31, 2016 , condensed consolidating statements of income and other comprehensive income (loss) for the years ended December 31, 2017 , 2016 and 2015 , condensed consolidating statements of cash flows for the years ended December 31, 2017 , 2016 and 2015 , and reclassification and elimination entries necessary to consolidate the Parent and all of its subsidiaries. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. The “Parent” reflected in the accompanying supplemental guarantor information is Park-Ohio Industries, Inc., who is also a guarantor. Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.2 $ 76.0 $ — $ 76.2 Accounts receivable, net — 149.5 93.1 — 242.6 Inventories, net — 198.9 83.9 — 282.8 Receivable from affiliates 0.6 — 17.8 — 18.4 Other current assets 0.9 34.8 25.2 — 60.9 Total current assets 1.5 383.4 296.0 — 680.9 Investment in subsidiaries 512.3 267.4 — (779.7 ) — Intercompany advances 364.8 85.2 112.9 (562.9 ) — Property, plant and equipment, net 6.0 103.5 70.0 — 179.5 Goodwill — 58.9 41.3 — 100.2 Intangible assets, net — 60.0 39.5 — 99.5 Other long-term assets 72.0 3.4 10.8 — 86.2 Total assets $ 956.6 $ 961.8 $ 570.5 $ (1,342.6 ) $ 1,146.3 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ — $ 121.8 $ 51.9 $ — $ 173.7 Payable to affiliates — — 7.1 — 7.1 Current portion of long-term and short-term debt — 9.0 8.7 — 17.7 Other accrued expenses 12.4 32.7 40.9 — 86.0 Total current liabilities 12.4 163.5 108.6 — 284.5 Long-term liabilities, less current portion: Debt 455.3 9.3 50.9 — 515.5 Deferred tax liabilities — 15.5 8.1 — 23.6 Other long-term liabilities 25.3 1.2 4.2 — 30.7 Total long-term liabilities 480.6 26.0 63.2 — 569.8 Intercompany advances 171.6 289.5 101.8 (562.9 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 279.9 482.8 284.8 (767.6 ) 279.9 Noncontrolling interest 12.1 — 12.1 (12.1 ) 12.1 Total shareholder's equity 292.0 482.8 296.9 (779.7 ) 292.0 Total liabilities and shareholder’s equity $ 956.6 $ 961.8 $ 570.5 $ (1,342.6 ) $ 1,146.3 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2016 Parent Guarantor Non-Guarantor Reclassifications/ Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 54.4 $ — $ 54.4 Accounts receivable, net — 125.2 69.2 — 194.4 Inventories, net — 172.9 67.7 — 240.6 Receivable from affiliates — — 12.8 — 12.8 Other current assets 0.7 28.3 24.3 — 53.3 Total current assets 0.7 326.4 228.4 — 555.5 Investment in subsidiaries 492.8 213.8 — (706.6 ) — Intercompany advances 296.5 78.1 110.5 (485.1 ) — Property, plant and equipment, net 6.2 98.2 65.2 — 169.6 Goodwill — 56.8 29.8 — 86.6 Intangible assets, net — 64.8 31.8 — 96.6 Other long-term assets 62.8 4.5 4.0 — 71.3 Total assets $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ — $ 100.3 $ 33.4 $ — $ 133.7 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.4 11.2 — 30.8 Other accrued expenses 10.5 36.8 31.3 — 78.6 Total current liabilities 23.7 143.5 82.9 — 250.1 Long-term liabilities, less current portion: Debt 389.2 12.2 37.6 — 439.0 Deferred income taxes — 20.4 8.6 — 29.0 Other long-term liabilities 16.1 8.5 5.2 — 29.8 Total long-term liabilities 405.3 41.1 51.4 — 497.8 Intercompany advances 198.3 192.2 94.6 (485.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 221.7 465.8 230.8 (696.6 ) 221.7 Noncontrolling interest 10.0 — 10.0 (10.0 ) 10.0 Total shareholder's equity 231.7 465.8 240.8 (706.6 ) 231.7 Total liabilities and shareholder’s equity $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) Net sales $ — $ 1,028.6 $ 384.3 $ — $ 1,412.9 Cost of sales — 873.4 304.9 — 1,178.3 Gross profit — 155.2 79.4 — 234.6 Selling, general and administrative expenses 28.3 72.9 45.7 — 146.9 Litigation settlement gains — (3.3 ) — — (3.3 ) Income (loss) from subsidiaries 98.0 20.7 — (118.7 ) — Operating income (loss) 69.7 106.3 33.7 (118.7 ) 91.0 Interest expense 28.5 — 3.0 — 31.5 Loss on extinguishment of debt 11.0 — — — 11.0 Income (loss) before income taxes 30.2 106.3 30.7 (118.7 ) 48.5 Income tax expense — 9.5 8.2 — 17.7 Net income (loss) 30.2 96.8 22.5 (118.7 ) 30.8 Net (income) loss attributable to noncontrolling interest (1.0 ) — (1.0 ) 1.0 (1.0 ) Net income (loss) attributable to ParkOhio common shareholder $ 29.2 $ 96.8 $ 21.5 $ (117.7 ) $ 29.8 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ 19.2 $ — $ 19.2 $ (19.2 ) $ 19.2 Recognition of actuarial loss (gain), net of tax 5.6 5.6 — (5.6 ) 5.6 Comprehensive income (loss), net of tax 55.0 102.4 41.7 (143.5 ) 55.6 Comprehensive (income) loss attributable to noncontrolling interest (1.0 ) — (1.0 ) 1.0 (1.0 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 54.0 $ 102.4 $ 40.7 $ (142.5 ) $ 54.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) Net sales $ — $ 985.6 $ 291.3 $ — $ 1,276.9 Cost of sales — 848.6 225.3 — 1,073.9 Gross profit — 137.0 66.0 — 203.0 Selling, general and administrative expenses 24.2 69.3 35.4 — 128.9 Asset impairment charges — 4.0 — — 4.0 Income (loss) from subsidiaries 84.0 19.2 — (103.2 ) — Operating income (loss) 59.8 82.9 30.6 (103.2 ) 70.1 Interest expense 27.1 — 1.1 — 28.2 Income (loss) before income taxes 32.7 82.9 29.5 (103.2 ) 41.9 Income tax expense — 1.1 8.1 — 9.2 Net income (loss) 32.7 81.8 21.4 (103.2 ) 32.7 Net (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Net income (loss) attributable to ParkOhio common shareholder $ 32.2 $ 81.8 $ 20.9 $ (102.7 ) $ 32.2 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (13.9 ) $ — $ (13.9 ) $ 13.9 $ (13.9 ) Recognition of actuarial loss (gain), net of tax 1.2 1.2 — (1.2 ) 1.2 Comprehensive income (loss), net of tax 20.0 83.0 7.5 (90.5 ) 20.0 Comprehensive (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 19.5 $ 83.0 $ 7.0 $ (90.0 ) $ 19.5 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) Net sales $ — $ 1,135.5 $ 328.3 $ — $ 1,463.8 Cost of sales — 967.6 261.0 — 1,228.6 Gross profit — 167.9 67.3 — 235.2 Selling, general and administrative expenses 28.6 70.6 35.2 — 134.4 Litigation judgment costs 2.2 — — — 2.2 Income (loss) from subsidiaries 106.6 20.6 — (127.2 ) — Operating income (loss) 75.8 117.9 32.1 (127.2 ) 98.6 Interest expense 26.6 — 1.3 — 27.9 Income (loss) before income taxes 49.2 117.9 30.8 (127.2 ) 70.7 Income tax expense — 14.7 6.8 — 21.5 Net income (loss) 49.2 103.2 24.0 (127.2 ) 49.2 Net income attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Net income (loss) attributable to ParkOhio common shareholder $ 48.6 $ 103.2 $ 23.4 $ (126.6 ) $ 48.6 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (11.8 ) $ — $ (11.8 ) $ 11.8 $ (11.8 ) Recognition of actuarial (loss) gain, net of tax (4.2 ) (4.2 ) — 4.2 (4.2 ) Comprehensive income (loss), net of tax 33.2 99.0 12.2 (111.2 ) 33.2 Comprehensive income attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 32.6 $ 99.0 $ 11.6 $ (110.6 ) $ 32.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (40.2 ) $ 56.3 $ 22.3 $ 3.6 $ 42.0 INVESTING ACTIVITIES Purchases of property, plant and equipment (0.3 ) (17.6 ) (9.9 ) — (27.8 ) Business acquisition, net of cash acquired — (18.3 ) (21.4 ) — (39.7 ) Net cash used by investing activities (0.3 ) (35.9 ) (31.3 ) — (67.5 ) FINANCING ACTIVITIES Intercompany account change 4.1 (19.9 ) 19.4 (3.6 ) — Payments on term loans and other debt (23.6 ) (0.9 ) (6.8 ) — (31.3 ) Payments on revolving credit facility, net (20.1 ) — 12.0 — (8.1 ) Proceeds from capital lease facilities, net — 0.6 0.9 — 1.5 Issuance of 6.625% senior notes due 2027 350.0 — — — 350.0 Bank financing costs (7.6 ) — — — (7.6 ) Redemption of 8.125% senior notes due 2021 (250.0 ) — — — (250.0 ) Premium on early extinguishment of debt (8.0 ) — — — (8.0 ) Dividend paid to parent (5.0 ) — — — (5.0 ) Dividends — — (0.6 ) — (0.6 ) Other 0.7 — — — 0.7 Net cash provided (used) by financing activities 40.5 (20.2 ) 24.9 (3.6 ) 41.6 Effect of exchange rate changes on cash — — 5.7 — 5.7 Increase in cash and cash equivalents — 0.2 21.6 — 21.8 Cash and cash equivalents at beginning of year — — 54.4 — 54.4 Cash and cash equivalents at end of year $ — $ 0.2 $ 76.0 $ — $ 76.2 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (31.5 ) $ 119.2 $ 14.2 $ (30.4 ) $ 71.5 INVESTING ACTIVITIES Purchases of property, plant and equipment — (20.4 ) (8.1 ) — (28.5 ) Business acquisition, net of cash acquired — — (23.4 ) — (23.4 ) Net cash (used) provided by investing activities — (20.4 ) (31.5 ) — (51.9 ) FINANCING ACTIVITIES Intercompany account change 73.9 (98.2 ) (6.1 ) 30.4 — Proceeds from other long-term debt 1.4 0.1 33.4 — 34.9 Payments on term loans and other debt (4.5 ) — — — (4.5 ) Proceeds from revolving credit facility, net (36.2 ) — — — (36.2 ) Payments on capital lease facilities — (0.8 ) (0.4 ) — (1.2 ) Dividend paid to parent (2.5 ) — — — (2.5 ) Other (0.6 ) — (2.0 ) — (2.6 ) Net cash provided (used) by financing activities 31.5 (98.9 ) 24.9 30.4 (12.1 ) Effect of exchange rate changes on cash — — (1.5 ) — (1.5 ) (Decrease) increase in cash and cash equivalents — (0.1 ) 6.1 — 6.0 Cash and cash equivalents at beginning of year — 0.1 48.3 — 48.4 Cash and cash equivalents at end of year $ — $ — $ 54.4 $ — $ 54.4 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (36.4 ) $ 82.0 $ 33.2 $ (41.6 ) $ 37.2 INVESTING ACTIVITIES Purchases of property, plant and equipment — (29.6 ) (6.9 ) — (36.5 ) Net cash (used) by investing activities — (29.6 ) (6.9 ) — (36.5 ) FINANCING ACTIVITIES Intercompany account change 45.6 (69.0 ) (18.2 ) 41.6 — Proceeds from other long-term debt 2.3 1.1 — — 3.4 Payments on term loans and other debt (3.3 ) — (1.4 ) — (4.7 ) Proceeds from revolving credit facility, net 7.9 — — — 7.9 Proceeds from capital lease facilities — 11.8 2.0 — 13.8 Dividend paid to parent (17.0 ) — — — (17.0 ) Other 0.9 — — — 0.9 Net cash provided (used) by financing activities 36.4 (56.1 ) (17.6 ) 41.6 4.3 Effect of exchange rate changes on cash — — (4.9 ) — (4.9 ) Increase in cash and cash equivalents — (3.7 ) 3.8 — 0.1 Cash and cash equivalents at beginning of year — 3.8 44.5 — 48.3 Cash and cash equivalents at end of year $ — $ 0.1 $ 48.3 $ — $ 48.4 |
Schedule II _ Valuation and Qua
Schedule II — Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II — 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 Beginning of Period Charged to Costs and Expenses Deductions and Other Balance at End of Period (In millions) Year Ended December 31, 2017: Allowances deducted from assets: Trade receivable allowances $ 4.0 1.5 (1.0 ) (A) $ 4.5 Inventory reserves 30.2 5.6 (6.0 ) (B) 29.8 Tax valuation allowances 5.3 5.6 0.7 (C) 11.6 Year Ended December 31, 2016: Allowances deducted from assets: Trade receivable allowances $ 3.3 $ 1.5 $ (0.8 ) (A) $ 4.0 Inventory reserves 29.0 6.0 (4.8 ) (B) 30.2 Tax valuation allowances 4.8 0.5 — (C) 5.3 Year Ended December 31, 2015: Allowances deducted from assets: Trade receivable allowances $ 4.1 $ 0.4 $ (1.2 ) (A) $ 3.3 Inventory reserves 29.9 4.2 (5.1 ) (B) 29.0 Tax valuation allowances 7.1 (0.7 ) (1.6 ) (C) 4.8 Note (A)- Uncollectable accounts written off, net of recoveries. Note (B)- Amounts written off. Note (C)- Amounts accounted for under the acquisition method of accounting. |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation: Park-Ohio Industries, Inc. (“ParkOhio,” “we” or the “Company”) is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. The Company leases certain real properties owned by related parties as described in Note 10. Transactions with related parties 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 in the consolidated financial statements. 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. |
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 allowance for doubtful accounts was $4.5 million and $4.0 million at December 31, 2017 and 2016, respectfully. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history, as well as a general reserve based on historical trends and other information. During 2017 and 2016 , we sold approximately $80.0 million and $81.6 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 cash flows from operating activities in the Consolidated Statements of Cash Flows. |
Inventories | Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or net realizable value. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of assets are capitalized and expenditures for repairs and maintenance are charged to operations as incurred. Depreciation and amortization of fixed assets, including capital leases, is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 40 years for buildings, and one to 20 years for machinery and equipment (with the majority in the range of three to ten years). |
Goodwill and Indefinite-Lived Assets | Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “ Intangibles — Goodwill and Other ” (“ASC 350”), goodwill and indefinite life intangible assets are not amortized, but rather are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be an indicator of impairment 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. Our reporting units have been identified at the component level. The Company completed its annual goodwill and indefinite-lived intangibles impairment testing as of October 1 of each year, noting no impairment. The Company uses an income approach, utilizing a discounted cash flow model based on forecasted cash flows and weighted average cost of capital, and other valuation techniques to determine fair value. |
Impairment of Long-Lived Assets | Impairment of Other Long-Lived Assets: Other long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. Upon indications of impairment, assets and liabilities are grouped at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. The asset group would be considered impaired when the estimated future net undiscounted cash flows generated by the asset group are less than its carrying value. |
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 6) approximate fair value at December 31, 2017 and December 31, 2016 because of the short-term nature of these instruments. The fair values of long-term debt and pension plan assets are disclosed in Note 6 and Note 11, respectively. The Company has not changed its valuation techniques for measuring fair value during 2017 , 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”). |
Share-Based Compensation | Share-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 grant date 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. Compensation expense of performance-based awards is recognized as an expense over the vesting periods of the awards using the accelerated attribution method once performance is deemed probable. Park-Ohio Holdings Corp. (“Holdings”) grants share-based compensation awards to Industries' employees. In accordance with ASC 718, such costs are allocated to Industries. Under the provisions of Holdings’ 2015 Equity and Incentive Compensation Plan (“2015 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. The 2015 Plan replaces in its entirety the 1998 Long-Term Incentive Plan, as amended (“1998 Plan”), but shares that remained available under the 1998 Plan were added to the aggregate share limit under that 2015 Plan. 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 value at the date of grant. The aggregate number of shares of Holdings' common stock that may be awarded under the 2015 Plan is 98,586 . |
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 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. We follow this method since reasonably reliable estimates of revenue and costs of a contract can be made. |
Cost of Sales | Cost of Sales : Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product; manufacturing labor, depreciation expense and direct overhead expense; and shipping and handling costs. |
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 expenses 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 and is undiscounted. |
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 other comprehensive income (loss) in shareholder's equity. Gains and losses resulting from foreign currency translations, including intercompany transactions that are not considered permanent investments, are included in the Consolidated Statements of Income. |
Warranty Liabilities | Warranties: 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. |
Accounting Pronouncements Adopted and Recent Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The Company adopted this ASU effective January 1, 2017. ASU 2016-09 requires prospective recognition of excess tax benefits and deficiencies resulting from share-based compensation awards vesting and exercises be recognized as a discrete income tax adjustment in the income statement. Previously, these amounts were recognized in Additional paid-in capital. In 2017, the Company recognized income tax expense of $0.2 million for excess tax deficiencies upon vesting of awards. In addition, ASU 2016-09 requires excess tax benefits and shortfalls to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares. ASU 2016-09 also requires that excess tax benefits from share-based compensation awards be reported as operating activities in the Consolidated Statements of Cash Flows. Previously, this activity was included in financing activities on the Consolidated Statements of Cash Flows. The Company has elected to apply this change on a prospective basis. This change has an immaterial impact on our Consolidated Statements of Cash Flows. Also, we elected to continue to estimate forfeitures rather than account for them as they occur. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment." The amendments in the ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted this guidance for its October 1, 2017 impairment test. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers”, a comprehensive new revenue recognition standard that will supersede existing guidance under U.S. GAAP. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Our implementation efforts included the identification of revenue within the scope of the standard, the evaluation of revenue contracts under the guidance, and assessing the impacts of the new standard on our financial statements. The new standard is effective for the Company for the first quarter of 2018, and we will utilize the modified retrospective method of adoption. This method allows companies to record a one-time adjustment to beginning retained earnings as of January 1, 2018 for the cumulative effect that the standard will have on open contracts at the date of adoption. During our implementation, we identified certain contracts which will require over time recognition under the new standard, either as goods are manufactured or services are performed, rather than at the time of shipment or completion as we do under existing guidance. Upon adoption, we expect to accelerate approximately $13 million to $17 million of revenue, resulting in a cumulative-effect adjustment of approximately $2 million to $4 million to our 2018 beginning retained earnings. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Board also is addressing measurement of credit losses on financial assets in a separate project. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The new guidance will be applied prospectively and is expected to have an immaterial impact on the financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The amendment establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. This ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. The Company is currently evaluating the impact of adopting this guidance. In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The Company will adopt this standard on the required date of January 1, 2018. The Company is currently evaluating the impact of adopting this guidance. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
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. 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, and 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. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs, certain non-cash charges and interest expense. |
Commitments and Contingencies | 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. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Major classes of inventories | Major Classes of Inventories December 31, 2017 December 31, 2016 (In millions) Finished goods $ 171.3 $ 131.4 Work in process 43.9 43.4 Raw materials and supplies 67.6 65.8 Inventories, net $ 282.8 $ 240.6 Other inventory items Inventory reserves $ (29.8 ) $ (30.2 ) Consigned Inventory $ 9.8 $ 12.2 |
Schedule of property, plant and equipment | The following table summarizes property, plant and equipment: December 31, December 31, (In millions) Property, plant and equipment: Land and land improvements $ 11.5 $ 11.3 Buildings 76.1 77.0 Machinery and equipment 348.6 316.1 Leased property under capital leases 24.1 20.4 Total property, plant and equipment 460.3 424.8 Less accumulated depreciation 280.8 255.2 Property, plant and equipment, net $ 179.5 $ 169.6 |
Schedule of depreciation expense | Information regarding depreciation expense of property, plant and equipment follows: Year Ended December 31, 2017 2016 2015 (In millions) Depreciation expense $ 24.9 $ 23.5 $ 21.5 |
Changes in product warranty liability | The following table presents the changes in the Company’s product warranty liability: Year Ended December 31, 2017 2016 2015 (In millions) Balance at January 1, $ 7.1 $ 6.1 $ 6.9 Claims paid during the year (4.0 ) (3.7 ) (4.7 ) Warranty expense 4.7 2.0 4.0 Acquired warranty liabilities 0.1 2.8 — Other — (0.1 ) (0.1 ) Balance at December 31, $ 7.9 $ 7.1 $ 6.1 |
Segments (Tables)
Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Results by business segment | Results by business segment were as follows: Year Ended December 31, 2017 2016 2015 (In millions) Net sales: Supply Technologies $ 561.8 $ 502.1 $ 578.7 Assembly Components 524.5 529.4 569.2 Engineered Products 326.6 245.4 315.9 $ 1,412.9 $ 1,276.9 $ 1,463.8 Segment operating income: Supply Technologies $ 45.9 $ 40.0 $ 50.3 Assembly Components 50.4 50.5 57.9 Engineered Products 20.7 10.6 20.9 Total segment operating income 117.0 101.1 129.1 Corporate costs (29.3 ) (27.0 ) (28.3 ) Asset impairment charge — (4.0 ) — Litigation settlement gains (judgment costs) 3.3 — (2.2 ) Operating income 91.0 70.1 98.6 Interest expense (31.5 ) (28.2 ) (27.9 ) Loss on extinguishment of debt (11.0 ) — — Income before income taxes $ 48.5 $ 41.9 $ 70.7 Year Ended December 31, 2017 2016 2015 (In millions) Capital expenditures: Supply Technologies $ 3.3 $ 6.1 $ 3.7 Assembly Components 18.6 16.9 27.3 Engineered Products 5.7 5.5 5.5 Corporate 0.2 — — $ 27.8 $ 28.5 $ 36.5 Depreciation and amortization expense: Supply Technologies $ 4.7 $ 4.7 $ 4.7 Assembly Components 20.7 20.1 18.6 Engineered Products 5.6 4.1 4.2 Corporate 0.5 0.4 0.4 $ 31.5 $ 29.6 $ 27.9 Identifiable assets: Supply Technologies $ 344.4 $ 262.0 $ 276.3 Assembly Components 351.4 332.9 344.8 Engineered Products 353.6 304.9 243.1 Corporate 96.9 79.8 75.4 $ 1,146.3 $ 979.6 $ 939.6 |
Percentage of net sales by product line | The percentage of net sales by product line included in each segment was as follows: Year Ended December 31, 2017 2016 2015 Supply Technologies: Supply Technologies 85 % 85 % 87 % Engineered specialty products 15 % 15 % 13 % 100 % 100 % 100 % Assembly Components: Fuel related, rubber and plastic products 70 % 67 % 59 % Aluminum products 30 % 33 % 41 % 100 % 100 % 100 % Engineered Products: Industrial equipment business 84 % 79 % 81 % Forged and machined products 16 % 21 % 19 % 100 % 100 % 100 % |
Approximate percentage of net sales by geographic region | The Company’s approximate percentage of net sales by geographic region was as follows: Year Ended December 31, 2017 2016 2015 United States 65 % 71 % 72 % Europe 10 % 8 % 7 % Asia 9 % 8 % 8 % Mexico 8 % 6 % 6 % Canada 7 % 6 % 6 % Other 1 % 1 % 1 % 100 % 100 % 100 % |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill by reportable segment are as follows: Supply Technologies Assembly Components Engineered Products Total (In millions) Balance at January 1, 2015 $ 7.6 $ 54.0 $ 27.9 $ 89.5 Acquisition adjustments — 0.1 (6.3 ) (6.2 ) Foreign currency translation (0.4 ) — (0.9 ) (1.3 ) Balance at December 31, 2015 7.2 54.1 20.7 82.0 GH acquisition — — 6.1 6.1 Foreign currency translation (1.1 ) — (0.4 ) (1.5 ) Balance at December 31, 2016 6.1 54.1 26.4 86.6 Acquisitions and adjustments 8.4 — 1.5 9.9 Foreign currency translation 0.9 — 2.8 3.7 Balance at December 31, 2017 $ 15.4 $ 54.1 $ 30.7 $ 100.2 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | December 31, 2017 December 31, 2016 Weighted Average Useful Life (Years) Gross Value Accumulated Net Value Gross Value Accumulated Net Value (In millions) Customer relationships 9.2 $ 83.4 $ 29.3 $ 54.1 $ 75.5 $ 23.7 $ 51.8 Indefinite-lived tradenames * 23.7 * 23.7 22.4 * 22.4 Technology 17.5 23.6 3.0 20.6 23.0 1.8 21.2 Other 7.2 4.1 3.0 1.1 4.0 2.8 1.2 Total $ 134.8 $ 35.3 $ 99.5 $ 124.9 $ 28.3 $ 96.6 * Not applicable, as these tradenames have an indefinite life. |
Schedule of amortization of intangible assets | Amortization expense of other intangible assets follows: Year Ended December 31, 2017 2016 2015 (In millions) Amortization expense $ 6.6 $ 6.1 $ 6.4 |
Amortization for the next five years | We estimate amortization expense for the five years subsequent to December 31, 2017 as follows: (In millions) 2018 $ 6.8 2019 $ 6.4 2020 $ 6.2 2021 $ 6.2 2022 $ 6.2 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: Carrying Value at Maturity Date Interest Rate at December 31, 2017 December 31, 2017 December 31, 2016 (In millions) Senior Notes due 2027 April 15, 2027 6.625 % $ 350.0 $ — Senior Notes due 2021 April 1, 2021 8.125 % — 250.0 Revolving credit facility April 17, 2022 3.30 % 124.7 132.8 Term loan — 23.4 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 27.0 26.4 Capital leases Various Various 20.3 18.8 Other Various Various 19.9 23.6 Gross debt 541.9 475.0 Less current portion of long-term debt (15.4 ) (25.8 ) Less short-term debt (2.3 ) (5.0 ) Less unamortized debt issuance costs (8.7 ) (5.2 ) Total long-term debt, net $ 515.5 $ 439.0 |
Fair value of debt | December 31, 2017 (In millions) Carrying amount $ 350.0 Fair value $ 380.6 |
Maturities of long-term debt | Maturities of short-term and long-term debt, excluding capital leases, during each of the five years subsequent to December 31, 2017 are as follows: (In millions) 2018 $ 8.6 2019 $ 9.8 2020 $ 9.5 2021 $ 15.3 2022 $ 125.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income tax expense | Income before income taxes consists of the following: Year Ended December 31, 2017 2016 2015 (In millions) United States $ 22.2 $ 16.3 $ 44.9 Outside the United States 26.3 25.6 25.8 $ 48.5 $ 41.9 $ 70.7 |
Income taxes | Income taxes consists of the following: Year Ended December 31, 2017 2016 2015 (In millions) Current expense (benefit): Federal $ 14.0 $ 0.3 $ 11.7 State 0.6 0.2 0.7 Foreign 7.6 6.6 6.0 22.2 7.1 18.4 Deferred expense (benefit): Federal (5.5 ) 0.9 2.9 State 0.3 0.5 0.6 Foreign 0.7 0.7 (0.4 ) (4.5 ) 2.1 3.1 Income tax expense $ 17.7 $ 9.2 $ 21.5 |
Reconciliation between federal statutory tax rate and effective tax rates | A reconciliation of income tax expense computed by applying the statutory federal income tax rate to income before income taxes as recorded is as follows: Year Ended December 31, 2017 2016 2015 (In millions) Tax at U.S. statutory rate $ 16.9 $ 14.7 $ 24.7 Effect of state income taxes, net 0.7 0.2 0.6 Effect of foreign operations (5.2 ) (2.1 ) (1.6 ) Valuation allowance 5.3 0.5 (0.7 ) Uncertain tax positions (2.0 ) (4.0 ) 0.1 Non-deductible items 0.5 0.6 0.5 Non-deductible compensation 0.4 0.8 1.2 Manufacturer's deduction (0.8 ) (0.5 ) (1.1 ) Net impact of U.S. Tax Act 3.3 — — Other, net (1.4 ) (1.0 ) (2.2 ) Total $ 17.7 $ 9.2 $ 21.5 |
Significant components of the Company's net deferred tax assets and liabilities | Significant components of the Company’s net deferred income tax assets and liabilities are as follows: Year Ended December 31, 2017 2016 (In millions) Deferred income tax assets: Postretirement benefit obligation $ 2.0 $ 3.6 Inventory 9.9 13.7 Net operating loss and credit carryforwards 16.1 10.8 Warranty reserve 0.4 2.1 Accrued litigation 0.1 2.8 Compensation 4.2 4.1 Other 4.9 9.8 Total deferred income tax assets 37.6 46.9 Deferred income tax liabilities: Depreciation and amortization 10.4 16.0 Pension 16.3 22.1 Intangible assets 16.6 23.3 Other 3.3 5.2 Total deferred income tax liabilities 46.6 66.6 Net deferred income tax liabilities prior to valuation allowances (9.0 ) (19.7 ) Valuation allowances (11.6 ) (5.3 ) Net deferred income tax liability $ (20.6 ) $ (25.0 ) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2017 2016 2015 (In millions) Unrecognized Tax Benefit — January 1, $ 2.9 $ 6.3 $ 6.5 Gross Increases to Tax Positions Related to Current Year 0.1 — — Gross Increases to Tax Positions Related to Prior Years 0.6 0.3 0.3 Gross Decreases to Tax Positions Related to Prior Years — — (0.1 ) Gross Decreases Related to Settlements with Taxing Authorities (0.4 ) — — Expiration of Statute of Limitations (1.9 ) (3.7 ) (0.4 ) Other (0.1 ) — — Unrecognized Tax Benefit — December 31, $ 1.2 $ 2.9 $ 6.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of stock option activity | A summary of Holdings' stock option activity for 2017 is presented below: 2017 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in whole shares) (in millions) Outstanding — beginning of year 38,000 $ 19.30 Granted — — Exercised (38,000 ) 19.30 Canceled or expired — — Outstanding — end of year — $ — 0.0 $ — Options exercisable — $ — 0.0 $ — |
Summary of restricted share activity | A summary of Holdings' restricted share and performance share activity for the year ended December 31, 2017 is as follows: 2017 Time-Based Performance-Based Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (in whole shares) (in whole shares) Outstanding — beginning of year 216,916 $ 36.94 165,000 $ 34.78 Granted (a) 105,670 38.48 165,000 38.10 Vested (87,727 ) 44.78 (55,000 ) 34.78 Performance- to time-based (b) 110,000 34.78 (110,000 ) 34.78 Canceled or expired (2,000 ) 37.87 — — Outstanding — end of year 342,859 $ 34.71 165,000 $ 38.10 (a) Included in the granted amount are 4,390 restricted share units (b) During the second quarter of 2017, 55,000 of the performance-based restricted shares granted in 2016 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 110,000 shares became time-based, vesting over the remaining two years of the requisite service period. |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future minimum lease commitments | Future minimum lease commitments during each of the five years following December 31, 2017 and thereafter are as follows: (In millions) Capital Leases Operating leases 2018 $ 9.4 $ 17.8 2019 5.9 13.5 2020 4.3 8.9 2021 1.3 5.8 2022 0.1 4.8 Thereafter — 13.3 Total minimum lease payments 21.0 $ 64.1 Amounts representing interest (0.7 ) Present value of minimum lease payments 20.3 Current maturities (9.1 ) Long-term capital lease obligation $ 11.2 |
Schedule of assets under capital leases | Assets recorded under capital leases are included in property, plant and equipment and consist of the following: December 31, 2017 December 31, 2016 Machinery and equipment $ 24.1 $ 20.4 Less accumulated depreciation (4.7 ) (2.3 ) $ 19.4 $ 18.1 |
Pensions and Postretirement B33
Pensions and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
Change in benefit obligation, plan assets, and funded status | The following tables set forth the changes 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, 2017 and 2016 : Pension Benefits Postretirement Benefits 2017 2016 2017 2016 (In millions) Change in benefit obligation Benefit obligation at beginning of year $ 58.5 $ 58.4 $ 10.0 $ 13.5 Service cost 2.4 2.4 — — Interest cost 1.8 1.8 0.3 0.3 Actuarial losses (gains) 2.4 0.5 0.5 (2.6 ) Benefits and expenses paid (4.6 ) (4.6 ) (1.5 ) (1.2 ) Benefit obligation at end of year $ 60.5 $ 58.5 $ 9.3 $ 10.0 Change in plan assets Fair value of plan assets at beginning of year $ 120.2 $ 117.3 $ — $ — Actual return on plan assets 20.2 8.3 — — Company contributions — — 1.5 1.2 Cash transfer to fund postretirement benefit payments (1.0 ) (0.8 ) — — Benefits and expenses paid (4.6 ) (4.6 ) (1.5 ) (1.2 ) Fair value of plan assets at end of year $ 134.8 $ 120.2 $ — $ — Funded (underfunded) status of the plans $ 74.3 $ 61.7 $ (9.3 ) $ (10.0 ) |
Amounts recognized in the consolidated balance sheets | Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits 2017 2016 2017 2016 (In millions) Pension assets $ 74.3 $ 61.7 $ — $ — Other current liabilities — — 1.1 1.2 Other long-term liabilities — — 8.2 8.8 $ 74.3 $ 61.7 $ 9.3 $ 10.0 Amounts recognized in Accumulated other comprehensive loss Net actuarial loss $ 16.5 $ 25.8 $ 2.1 $ 1.7 Net prior service cost (credit) 0.3 0.3 (0.1 ) (0.2 ) Accumulated other comprehensive loss $ 16.8 $ 26.1 $ 2.0 $ 1.5 |
Allocation of assets, and fair value hierarchy | The following table sets forth, by level within the fair value hierarchy, the pension plans assets: 2017 2016 Level 1 Total (at Fair Value) Level 1 Total (at Fair Value) (In millions) Common stock $ 41.8 $ 41.8 $ 40.0 $ 40.0 Equity securities 39.8 39.8 29.0 29.0 Foreign stock 7.3 7.3 5.4 5.4 U.S. Government obligations 5.8 5.8 8.1 8.1 Fixed income securities 13.7 13.7 14.1 14.1 Corporate Bonds 10.2 10.2 6.3 6.3 Cash and cash equivalents 1.4 1.4 3.3 3.3 Total $ 120.0 $ 106.2 Investments measured at net asset value: Common collective trusts 0.7 1.1 Hedge funds 14.1 12.9 Total assets at fair value $ 134.8 $ 120.2 The pension plan weighted-average asset allocation at December 31, 2017 and 2016 and target allocation for 2018 are as follows: Plan Assets Target 2018 2017 2016 Asset Category Equity securities 45-75% 65.0 % 61.9 % Debt securities 20-40% 23.6 % 24.6 % Other 0-20% 11.4 % 13.5 % 100% 100 % 100 % |
Assumptions used in valuation | Weighted-Average assumptions as of December 31, Pension Benefits Postretirement Benefits 2017 2016 2015 2017 2016 2015 Assumptions used to determine benefit obligation at year-end Discount rate 3.52 % 3.91 % 4.13 % 3.32 % 3.63 % 3.80 % Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Health care cost trend rate N/A N/A N/A 6.50 % 6.50 % 6.75 % Ultimate health care cost trend rate N/A N/A N/A 5.00 % 5.00 % 5.00 % Year of ultimate trend rate N/A N/A N/A 2025 2025 2022 Assumptions used to determine expense Discount rate for benefit obligations 3.90 % 4.13 % 3.82 % 3.61 % 3.76 % 3.60 % Discount rate for service costs 3.98 % 4.20 % 3.82 % 4.24 % 4.44 % 3.60 % Discount rate for interest costs 3.20 % 3.27 % 3.82 % 2.90 % 2.89 % 3.60 % Expected return on plan assets 8.25 % 8.25 % 8.25 % N/A N/A N/A Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Medical health care benefits rate increase N/A N/A N/A 6.50 % 6.50 % 6.75 % Medical drug benefits rate increase N/A N/A N/A 6.50 % 6.50 % 6.75 % Ultimate health care cost trend rate N/A N/A N/A 5.00 % 5.00 % 5.00 % Year of ultimate trend rate N/A N/A N/A 2025 2025 2022 |
Components of net periodic benefit cost | Pension Benefits Postretirement Benefits 2017 2016 2015 2017 2016 2015 (In millions) Components of net periodic benefit cost Service costs $ 2.4 $ 2.4 $ 2.6 $ — $ — $ — Interest costs 1.8 1.8 2.3 0.3 0.3 0.6 Expected return on plan assets (9.7 ) (9.4 ) (10.2 ) — — — Amortization of prior service cost (credit) — — — (0.1 ) (0.1 ) (0.1 ) Recognized net actuarial loss 1.2 1.1 0.3 0.1 0.1 0.5 Benefit (income) costs $ (4.3 ) $ (4.1 ) $ (5.0 ) $ 0.3 $ 0.3 $ 1.0 Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss AOCI at beginning of year $ 26.1 $ 25.5 $ 15.7 $ 1.5 $ 4.1 $ 7.2 Net (loss) gain arising during the year (1.1 ) 1.7 10.1 0.5 (2.6 ) (2.7 ) Recognition of prior service credit — — — 0.1 0.1 0.1 Recognition of actuarial loss (8.2 ) (1.1 ) (0.3 ) (0.1 ) (0.1 ) (0.5 ) Total recognized in accumulated other comprehensive loss at end of year $ 16.8 $ 26.1 $ 25.5 $ 2.0 $ 1.5 $ 4.1 |
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 Medicare Subsidy Net including Medicare Subsidy (In millions) 2018 $ 5.1 $ 1.2 $ 1.1 $ 0.1 2019 4.4 1.1 1.0 0.1 2020 4.5 1.0 0.9 0.1 2021 4.6 0.9 0.8 0.1 2022 4.4 0.9 0.8 0.1 2023 to 2027 22.8 3.6 3.2 0.4 |
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 Point Increase 1-Percentage Point Decrease (In millions) Effect on total of service and interest cost components in 2017 $ — $ — Effect on postretirement benefit obligation as of December 31, 2017 $ 0.6 $ (0.6 ) |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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, 2017 , 2016 , and 2015 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Balance at January 1, 2015 $ (5.1 ) $ (8.9 ) $ (14.0 ) Foreign currency translation adjustments (a) (11.8 ) — (11.8 ) Pension and OPEB activity, net of tax adjustments(b) — (4.2 ) (4.2 ) Balance at December 31, 2015 (16.9 ) (13.1 ) (30.0 ) Foreign currency translation adjustments (a) (13.9 ) — (13.9 ) Pension and OPEB activity, net of tax adjustments(b) — 1.2 1.2 Balance at December 31, 2016 (30.8 ) (11.9 ) (42.7 ) Foreign currency translation adjustments (a) 19.2 — 19.2 Pension and OPEB activity, net of tax adjustments(b) — 5.6 5.6 Balance at December 31, 2017 $ (11.6 ) $ (6.3 ) $ (17.9 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. (b) The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. |
Supplemental Guarantor Inform35
Supplemental Guarantor Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Guarantor Information [Abstract] | |
Condensed consolidating balance sheet | Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.2 $ 76.0 $ — $ 76.2 Accounts receivable, net — 149.5 93.1 — 242.6 Inventories, net — 198.9 83.9 — 282.8 Receivable from affiliates 0.6 — 17.8 — 18.4 Other current assets 0.9 34.8 25.2 — 60.9 Total current assets 1.5 383.4 296.0 — 680.9 Investment in subsidiaries 512.3 267.4 — (779.7 ) — Intercompany advances 364.8 85.2 112.9 (562.9 ) — Property, plant and equipment, net 6.0 103.5 70.0 — 179.5 Goodwill — 58.9 41.3 — 100.2 Intangible assets, net — 60.0 39.5 — 99.5 Other long-term assets 72.0 3.4 10.8 — 86.2 Total assets $ 956.6 $ 961.8 $ 570.5 $ (1,342.6 ) $ 1,146.3 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ — $ 121.8 $ 51.9 $ — $ 173.7 Payable to affiliates — — 7.1 — 7.1 Current portion of long-term and short-term debt — 9.0 8.7 — 17.7 Other accrued expenses 12.4 32.7 40.9 — 86.0 Total current liabilities 12.4 163.5 108.6 — 284.5 Long-term liabilities, less current portion: Debt 455.3 9.3 50.9 — 515.5 Deferred tax liabilities — 15.5 8.1 — 23.6 Other long-term liabilities 25.3 1.2 4.2 — 30.7 Total long-term liabilities 480.6 26.0 63.2 — 569.8 Intercompany advances 171.6 289.5 101.8 (562.9 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 279.9 482.8 284.8 (767.6 ) 279.9 Noncontrolling interest 12.1 — 12.1 (12.1 ) 12.1 Total shareholder's equity 292.0 482.8 296.9 (779.7 ) 292.0 Total liabilities and shareholder’s equity $ 956.6 $ 961.8 $ 570.5 $ (1,342.6 ) $ 1,146.3 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2016 Parent Guarantor Non-Guarantor Reclassifications/ Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 54.4 $ — $ 54.4 Accounts receivable, net — 125.2 69.2 — 194.4 Inventories, net — 172.9 67.7 — 240.6 Receivable from affiliates — — 12.8 — 12.8 Other current assets 0.7 28.3 24.3 — 53.3 Total current assets 0.7 326.4 228.4 — 555.5 Investment in subsidiaries 492.8 213.8 — (706.6 ) — Intercompany advances 296.5 78.1 110.5 (485.1 ) — Property, plant and equipment, net 6.2 98.2 65.2 — 169.6 Goodwill — 56.8 29.8 — 86.6 Intangible assets, net — 64.8 31.8 — 96.6 Other long-term assets 62.8 4.5 4.0 — 71.3 Total assets $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ — $ 100.3 $ 33.4 $ — $ 133.7 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.4 11.2 — 30.8 Other accrued expenses 10.5 36.8 31.3 — 78.6 Total current liabilities 23.7 143.5 82.9 — 250.1 Long-term liabilities, less current portion: Debt 389.2 12.2 37.6 — 439.0 Deferred income taxes — 20.4 8.6 — 29.0 Other long-term liabilities 16.1 8.5 5.2 — 29.8 Total long-term liabilities 405.3 41.1 51.4 — 497.8 Intercompany advances 198.3 192.2 94.6 (485.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 221.7 465.8 230.8 (696.6 ) 221.7 Noncontrolling interest 10.0 — 10.0 (10.0 ) 10.0 Total shareholder's equity 231.7 465.8 240.8 (706.6 ) 231.7 Total liabilities and shareholder’s equity $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 |
Condensed consolidating statement of income and other comprehensive income (loss) | Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2017 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) Net sales $ — $ 1,028.6 $ 384.3 $ — $ 1,412.9 Cost of sales — 873.4 304.9 — 1,178.3 Gross profit — 155.2 79.4 — 234.6 Selling, general and administrative expenses 28.3 72.9 45.7 — 146.9 Litigation settlement gains — (3.3 ) — — (3.3 ) Income (loss) from subsidiaries 98.0 20.7 — (118.7 ) — Operating income (loss) 69.7 106.3 33.7 (118.7 ) 91.0 Interest expense 28.5 — 3.0 — 31.5 Loss on extinguishment of debt 11.0 — — — 11.0 Income (loss) before income taxes 30.2 106.3 30.7 (118.7 ) 48.5 Income tax expense — 9.5 8.2 — 17.7 Net income (loss) 30.2 96.8 22.5 (118.7 ) 30.8 Net (income) loss attributable to noncontrolling interest (1.0 ) — (1.0 ) 1.0 (1.0 ) Net income (loss) attributable to ParkOhio common shareholder $ 29.2 $ 96.8 $ 21.5 $ (117.7 ) $ 29.8 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ 19.2 $ — $ 19.2 $ (19.2 ) $ 19.2 Recognition of actuarial loss (gain), net of tax 5.6 5.6 — (5.6 ) 5.6 Comprehensive income (loss), net of tax 55.0 102.4 41.7 (143.5 ) 55.6 Comprehensive (income) loss attributable to noncontrolling interest (1.0 ) — (1.0 ) 1.0 (1.0 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 54.0 $ 102.4 $ 40.7 $ (142.5 ) $ 54.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) Net sales $ — $ 985.6 $ 291.3 $ — $ 1,276.9 Cost of sales — 848.6 225.3 — 1,073.9 Gross profit — 137.0 66.0 — 203.0 Selling, general and administrative expenses 24.2 69.3 35.4 — 128.9 Asset impairment charges — 4.0 — — 4.0 Income (loss) from subsidiaries 84.0 19.2 — (103.2 ) — Operating income (loss) 59.8 82.9 30.6 (103.2 ) 70.1 Interest expense 27.1 — 1.1 — 28.2 Income (loss) before income taxes 32.7 82.9 29.5 (103.2 ) 41.9 Income tax expense — 1.1 8.1 — 9.2 Net income (loss) 32.7 81.8 21.4 (103.2 ) 32.7 Net (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Net income (loss) attributable to ParkOhio common shareholder $ 32.2 $ 81.8 $ 20.9 $ (102.7 ) $ 32.2 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (13.9 ) $ — $ (13.9 ) $ 13.9 $ (13.9 ) Recognition of actuarial loss (gain), net of tax 1.2 1.2 — (1.2 ) 1.2 Comprehensive income (loss), net of tax 20.0 83.0 7.5 (90.5 ) 20.0 Comprehensive (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 19.5 $ 83.0 $ 7.0 $ (90.0 ) $ 19.5 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2015 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) Net sales $ — $ 1,135.5 $ 328.3 $ — $ 1,463.8 Cost of sales — 967.6 261.0 — 1,228.6 Gross profit — 167.9 67.3 — 235.2 Selling, general and administrative expenses 28.6 70.6 35.2 — 134.4 Litigation judgment costs 2.2 — — — 2.2 Income (loss) from subsidiaries 106.6 20.6 — (127.2 ) — Operating income (loss) 75.8 117.9 32.1 (127.2 ) 98.6 Interest expense 26.6 — 1.3 — 27.9 Income (loss) before income taxes 49.2 117.9 30.8 (127.2 ) 70.7 Income tax expense — 14.7 6.8 — 21.5 Net income (loss) 49.2 103.2 24.0 (127.2 ) 49.2 Net income attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Net income (loss) attributable to ParkOhio common shareholder $ 48.6 $ 103.2 $ 23.4 $ (126.6 ) $ 48.6 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (11.8 ) $ — $ (11.8 ) $ 11.8 $ (11.8 ) Recognition of actuarial (loss) gain, net of tax (4.2 ) (4.2 ) — 4.2 (4.2 ) Comprehensive income (loss), net of tax 33.2 99.0 12.2 (111.2 ) 33.2 Comprehensive income attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 32.6 $ 99.0 $ 11.6 $ (110.6 ) $ 32.6 |
Condensed consolidating statement of cash flows | Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2017 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (40.2 ) $ 56.3 $ 22.3 $ 3.6 $ 42.0 INVESTING ACTIVITIES Purchases of property, plant and equipment (0.3 ) (17.6 ) (9.9 ) — (27.8 ) Business acquisition, net of cash acquired — (18.3 ) (21.4 ) — (39.7 ) Net cash used by investing activities (0.3 ) (35.9 ) (31.3 ) — (67.5 ) FINANCING ACTIVITIES Intercompany account change 4.1 (19.9 ) 19.4 (3.6 ) — Payments on term loans and other debt (23.6 ) (0.9 ) (6.8 ) — (31.3 ) Payments on revolving credit facility, net (20.1 ) — 12.0 — (8.1 ) Proceeds from capital lease facilities, net — 0.6 0.9 — 1.5 Issuance of 6.625% senior notes due 2027 350.0 — — — 350.0 Bank financing costs (7.6 ) — — — (7.6 ) Redemption of 8.125% senior notes due 2021 (250.0 ) — — — (250.0 ) Premium on early extinguishment of debt (8.0 ) — — — (8.0 ) Dividend paid to parent (5.0 ) — — — (5.0 ) Dividends — — (0.6 ) — (0.6 ) Other 0.7 — — — 0.7 Net cash provided (used) by financing activities 40.5 (20.2 ) 24.9 (3.6 ) 41.6 Effect of exchange rate changes on cash — — 5.7 — 5.7 Increase in cash and cash equivalents — 0.2 21.6 — 21.8 Cash and cash equivalents at beginning of year — — 54.4 — 54.4 Cash and cash equivalents at end of year $ — $ 0.2 $ 76.0 $ — $ 76.2 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 Parent Guarantor Non-Guarantor Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (31.5 ) $ 119.2 $ 14.2 $ (30.4 ) $ 71.5 INVESTING ACTIVITIES Purchases of property, plant and equipment — (20.4 ) (8.1 ) — (28.5 ) Business acquisition, net of cash acquired — — (23.4 ) — (23.4 ) Net cash (used) provided by investing activities — (20.4 ) (31.5 ) — (51.9 ) FINANCING ACTIVITIES Intercompany account change 73.9 (98.2 ) (6.1 ) 30.4 — Proceeds from other long-term debt 1.4 0.1 33.4 — 34.9 Payments on term loans and other debt (4.5 ) — — — (4.5 ) Proceeds from revolving credit facility, net (36.2 ) — — — (36.2 ) Payments on capital lease facilities — (0.8 ) (0.4 ) — (1.2 ) Dividend paid to parent (2.5 ) — — — (2.5 ) Other (0.6 ) — (2.0 ) — (2.6 ) Net cash provided (used) by financing activities 31.5 (98.9 ) 24.9 30.4 (12.1 ) Effect of exchange rate changes on cash — — (1.5 ) — (1.5 ) (Decrease) increase in cash and cash equivalents — (0.1 ) 6.1 — 6.0 Cash and cash equivalents at beginning of year — 0.1 48.3 — 48.4 Cash and cash equivalents at end of year $ — $ — $ 54.4 $ — $ 54.4 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (36.4 ) $ 82.0 $ 33.2 $ (41.6 ) $ 37.2 INVESTING ACTIVITIES Purchases of property, plant and equipment — (29.6 ) (6.9 ) — (36.5 ) Net cash (used) by investing activities — (29.6 ) (6.9 ) — (36.5 ) FINANCING ACTIVITIES Intercompany account change 45.6 (69.0 ) (18.2 ) 41.6 — Proceeds from other long-term debt 2.3 1.1 — — 3.4 Payments on term loans and other debt (3.3 ) — (1.4 ) — (4.7 ) Proceeds from revolving credit facility, net 7.9 — — — 7.9 Proceeds from capital lease facilities — 11.8 2.0 — 13.8 Dividend paid to parent (17.0 ) — — — (17.0 ) Other 0.9 — — — 0.9 Net cash provided (used) by financing activities 36.4 (56.1 ) (17.6 ) 41.6 4.3 Effect of exchange rate changes on cash — — (4.9 ) — (4.9 ) Increase in cash and cash equivalents — (3.7 ) 3.8 — 0.1 Cash and cash equivalents at beginning of year — 3.8 44.5 — 48.3 Cash and cash equivalents at end of year $ — $ 0.1 $ 48.3 $ — $ 48.4 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)customersegmentshares | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 01, 2018USD ($) | |
Line of Credit Facility [Line Items] | |||||
Number of reportable segments (segment) | segment | 3 | ||||
Allowance for doubtful accounts | $ 4.5 | $ 4 | |||
Sale of accounts receivable | 80 | 81.6 | |||
Discount on sale of accounts receivable | 0.6 | 0.5 | |||
Unbilled contracts receivable | 40.1 | 35.6 | |||
Billings in excess of cost | $ 23 | 22.7 | |||
Number of customers in the automotive industry (customer) | customer | 6 | ||||
Aggregate amount trade accounts receivable | $ 42.7 | ||||
Percentage of trade accounts receivable | 18.00% | ||||
Amount of net sales | $ 291.3 | ||||
Percentage of net sales | 21.00% | ||||
Share-based compensation, tax expense, ASU 2016-09 | $ 0.2 | ||||
Net sales | 1,412.9 | 1,276.9 | $ 1,463.8 | ||
Retained earnings | $ 182.9 | $ 158.1 | |||
2015 Long-Term Incentive Plan | |||||
Line of Credit Facility [Line Items] | |||||
Common stock that may be awarded (in shares) | shares | 98,586 | ||||
Stock options | 2015 Long-Term Incentive Plan | |||||
Line of Credit Facility [Line Items] | |||||
Expiration term | 10 years | ||||
Machinery and equipment | |||||
Line of Credit Facility [Line Items] | |||||
Property, plant and equipment, useful life, majority range, minimum | 3 years | ||||
Property, plant and equipment, useful life, majority range, maximum | 10 years | ||||
Minimum | Forecast | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Line of Credit Facility [Line Items] | |||||
Net sales | $ 13 | ||||
Retained earnings | $ 2 | ||||
Minimum | Building | |||||
Line of Credit Facility [Line Items] | |||||
Estimated useful lives | 5 years | ||||
Minimum | Machinery and equipment | |||||
Line of Credit Facility [Line Items] | |||||
Estimated useful lives | 1 year | ||||
Maximum | Forecast | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | |||||
Line of Credit Facility [Line Items] | |||||
Net sales | $ 17 | ||||
Retained earnings | $ 4 | ||||
Maximum | Building | |||||
Line of Credit Facility [Line Items] | |||||
Estimated useful lives | 40 years | ||||
Maximum | Machinery and equipment | |||||
Line of Credit Facility [Line Items] | |||||
Estimated useful lives | 20 years |
Summary of Significant Accoun37
Summary of Significant Accounting Policies (Schedule of Major Classes of Inventories) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Major Classes of Inventories | ||
Finished goods | $ 171.3 | $ 131.4 |
Work in process | 43.9 | 43.4 |
Raw materials and supplies | 67.6 | 65.8 |
Inventories, net | 282.8 | 240.6 |
Other inventory items | ||
Inventory reserves | (29.8) | (30.2) |
Consigned Inventory | $ 9.8 | $ 12.2 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 460.3 | $ 424.8 |
Less accumulated depreciation | 280.8 | 255.2 |
Property, plant and equipment, net | 179.5 | 169.6 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 11.5 | 11.3 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 76.1 | 77 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | 348.6 | 316.1 |
Leased property under capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment | $ 24.1 | $ 20.4 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Schedule of Depreciation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation expense | $ 24.9 | $ 23.5 | $ 21.5 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Schedule of Changes in Product Warranty Liability) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in product warranty liability | |||
Balance, Beginning of Period | $ 7.1 | $ 6.1 | $ 6.9 |
Claims paid during the year | (4) | (3.7) | (4.7) |
Warranty expense | 4.7 | 2 | 4 |
Acquired warranty liabilities | 0.1 | 2.8 | 0 |
Other | 0 | (0.1) | (0.1) |
Balance, End of Period | $ 7.9 | $ 7.1 | $ 6.1 |
Segments (Narrative) (Details)
Segments (Narrative) (Details) - segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Number of reportable segments (segment) | 3 | ||
Percentage of assets | 65.00% | 68.00% | 71.00% |
Segments (Schedule of Segment I
Segments (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales: | ||||
Net sales | $ 1,412.9 | $ 1,276.9 | $ 1,463.8 | |
Segment operating income: | ||||
Segment operating income: | 91 | 70.1 | 98.6 | |
Asset impairment charge | 0 | (4) | 0 | |
Litigation settlement gains (judgment costs) | $ 3.3 | 3.3 | 0 | (2.2) |
Interest expense | (31.5) | (28.2) | (27.9) | |
Loss on extinguishment of debt | (11) | 0 | 0 | |
Income before income taxes | 48.5 | 41.9 | 70.7 | |
Identifiable assets: | ||||
Capital expenditures: | 27.8 | 28.5 | 36.5 | |
Depreciation and amortization | 31.5 | 29.6 | 27.9 | |
Identifiable assets: | 1,146.3 | 979.6 | 939.6 | |
Operating Segments | ||||
Segment operating income: | ||||
Segment operating income: | 117 | 101.1 | 129.1 | |
Segment Reconciling Items | ||||
Segment operating income: | ||||
Corporate costs | (29.3) | (27) | (28.3) | |
Corporate | ||||
Identifiable assets: | ||||
Capital expenditures: | 0.2 | 0 | 0 | |
Depreciation and amortization | 0.5 | 0.4 | 0.4 | |
Identifiable assets: | 96.9 | 79.8 | 75.4 | |
Supply Technologies | ||||
Net sales: | ||||
Net sales | 561.8 | 502.1 | 578.7 | |
Identifiable assets: | ||||
Capital expenditures: | 3.3 | 6.1 | 3.7 | |
Depreciation and amortization | 4.7 | 4.7 | 4.7 | |
Identifiable assets: | 344.4 | 262 | 276.3 | |
Supply Technologies | Operating Segments | ||||
Segment operating income: | ||||
Segment operating income: | 45.9 | 40 | 50.3 | |
Assembly Components | ||||
Net sales: | ||||
Net sales | 524.5 | 529.4 | 569.2 | |
Identifiable assets: | ||||
Capital expenditures: | 18.6 | 16.9 | 27.3 | |
Depreciation and amortization | 20.7 | 20.1 | 18.6 | |
Identifiable assets: | 351.4 | 332.9 | 344.8 | |
Assembly Components | Operating Segments | ||||
Segment operating income: | ||||
Segment operating income: | 50.4 | 50.5 | 57.9 | |
Engineered Products | ||||
Net sales: | ||||
Net sales | 326.6 | 245.4 | 315.9 | |
Identifiable assets: | ||||
Capital expenditures: | 5.7 | 5.5 | 5.5 | |
Depreciation and amortization | 5.6 | 4.1 | 4.2 | |
Identifiable assets: | 353.6 | 304.9 | 243.1 | |
Engineered Products | Operating Segments | ||||
Segment operating income: | ||||
Segment operating income: | $ 20.7 | $ 10.6 | $ 20.9 |
Segments (Percentage of Net Sal
Segments (Percentage of Net Sales by Product Line) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Supply Technologies | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Assembly Components | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Supply Technologies | Supply Technologies | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 85.00% | 85.00% | 87.00% |
Engineered specialty products | Supply Technologies | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 15.00% | 15.00% | 13.00% |
Fuel related, rubber and plastic products | Assembly Components | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 70.00% | 67.00% | 59.00% |
Aluminum products | Assembly Components | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 30.00% | 33.00% | 41.00% |
Industrial equipment business | Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 84.00% | 79.00% | 81.00% |
Forged and machined products | Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 16.00% | 21.00% | 19.00% |
Segments (Company_s approximate
Segments (Company’s approximate percentage of net sales by geographic region) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
United States | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 65.00% | 71.00% | 72.00% |
Europe | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 10.00% | 8.00% | 7.00% |
Asia | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 9.00% | 8.00% | 8.00% |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 8.00% | 6.00% | 6.00% |
Canada | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 7.00% | 6.00% | 6.00% |
Other | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 1.00% | 1.00% | 1.00% |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Business acquisition, cash paid | $ 39.7 | $ 23.4 | $ 0 | ||
Goodwill acquired during the period | $ 86.6 | 100.2 | 86.6 | $ 82 | $ 89.5 |
Intangible assets, net | 96.6 | 99.5 | 96.6 | ||
Series of Individually Immaterial Business Acquisitions [Member] | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Revenue since acquisition | 18.5 | ||||
Business acquisition, cash paid | 39.7 | ||||
Goodwill acquired during the period | 8.4 | ||||
Intangible assets, net | $ 2 | ||||
GH Electrotermia S.A. | |||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||||
Business acquisition, cash paid | 23.4 | ||||
Cash acquired | 6.3 | ||||
Deb assumed in acquisition | 13.9 | 13.9 | |||
Contingent consideration, fair value of earn-out | $ 2.1 | $ 2.1 |
Goodwill (Change in Goodwill) (
Goodwill (Change in Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 86.6 | $ 82 | $ 89.5 |
Acquisitions | 6.1 | ||
Acquisition adjustments | 9.9 | (6.2) | |
Foreign currency translation | 3.7 | (1.5) | (1.3) |
Balance, end of period | 100.2 | 86.6 | 82 |
Supply Technologies | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 6.1 | 7.2 | 7.6 |
Acquisitions | 0 | ||
Acquisition adjustments | 8.4 | 0 | |
Foreign currency translation | 0.9 | (1.1) | (0.4) |
Balance, end of period | 15.4 | 6.1 | 7.2 |
Assembly Components | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 54.1 | 54.1 | 54 |
Acquisitions | 0 | ||
Acquisition adjustments | 0 | 0.1 | |
Foreign currency translation | 0 | 0 | 0 |
Balance, end of period | 54.1 | 54.1 | 54.1 |
Engineered Products | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 26.4 | 20.7 | 27.9 |
Acquisitions | 6.1 | ||
Acquisition adjustments | 1.5 | (6.3) | |
Foreign currency translation | 2.8 | (0.4) | (0.9) |
Balance, end of period | $ 30.7 | $ 26.4 | $ 20.7 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details of other intangible assets | ||
Intangible assets, gross value | $ 134.8 | $ 124.9 |
Accumulated Amortization | 35.3 | 28.3 |
Total, Net | 99.5 | 96.6 |
Tradenames | ||
Details of other intangible assets | ||
Indefinite-lived tradenames | $ 23.7 | 22.4 |
Non-contractual customer relationships | ||
Details of other intangible assets | ||
Weighted Average Useful Life (Years) | 9 years 2 months 6 days | |
Finite-lived assets, Gross Value | $ 83.4 | 75.5 |
Accumulated Amortization | 29.3 | 23.7 |
Finite-lived assets, Net Value | $ 54.1 | 51.8 |
Technology | ||
Details of other intangible assets | ||
Weighted Average Useful Life (Years) | 17 years 6 months 6 days | |
Finite-lived assets, Gross Value | $ 23.6 | 23 |
Accumulated Amortization | 3 | 1.8 |
Finite-lived assets, Net Value | $ 20.6 | 21.2 |
Other | ||
Details of other intangible assets | ||
Weighted Average Useful Life (Years) | 7 years 2 months 12 days | |
Finite-lived assets, Gross Value | $ 4.1 | 4 |
Accumulated Amortization | 3 | 2.8 |
Finite-lived assets, Net Value | $ 1.1 | $ 1.2 |
Other Intangible Assets (Narrat
Other Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
GH Electrotermia S.A. | ||
Indefinite and Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $ 6.5 | |
Non-contractual customer relationships | ||
Indefinite and Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 83.4 | $ 75.5 |
Non-contractual customer relationships | Heads & All Threads Ltd. | ||
Indefinite and Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 2 | |
Non-contractual customer relationships | GH Electrotermia S.A. | ||
Indefinite and Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 3.6 | |
Trade Names [Member] | ||
Indefinite and Finite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 23.7 | 22.4 |
Trade Names [Member] | GH Electrotermia S.A. | ||
Indefinite and Finite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 4.8 |
Other Intangible Assets (Sche49
Other Intangible Assets (Schedule of Amortization of Intangible Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 6.6 | $ 6.1 | $ 6.4 |
Other Intangible Assets (Sche50
Other Intangible Assets (Schedule of Amortization Expense for the Next Five Years) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,018 | $ 6.8 |
2,019 | 6.4 |
2,020 | 6.2 |
2,021 | 6.2 |
2,022 | $ 6.2 |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Apr. 17, 2017 | Dec. 31, 2016 |
Carrying Value at | |||
Gross debt | $ 541.9 | $ 475 | |
Less current maturities | (15.4) | (25.8) | |
Less short-term debt | (2.3) | (5) | |
Less unamortized debt issuance costs | (8.7) | (5.2) | |
Total long-term debt, net of current portion | $ 515.5 | 439 | |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.30% | ||
Carrying Value at | |||
Gross debt | $ 124.7 | 132.8 | |
Term loan | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | |||
Carrying Value at | |||
Gross debt | $ 0 | 23.4 | |
Foreign line of credit | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 3.25% | ||
Carrying Value at | |||
Gross debt | $ 27 | 26.4 | |
8.125% senior notes due 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 8.125% | ||
Capital leases | |||
Carrying Value at | |||
Gross debt | 20.3 | 18.8 | |
Other | |||
Carrying Value at | |||
Gross debt | $ 19.9 | 23.6 | |
Senior Notes 6.625% Due 2027 | 8.125% senior notes due 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 6.625% | 6.625% | |
Carrying Value at | |||
Gross debt | $ 350 | 0 | |
Senior Notes 8.125% Due 2021 | 8.125% senior notes due 2021 | |||
Debt Instrument [Line Items] | |||
Senior notes, interest rate | 8.125% | ||
Carrying Value at | |||
Gross debt | $ 0 | $ 250 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) - USD ($) | Apr. 17, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 21, 2016 | Oct. 21, 2015 | Aug. 13, 2015 |
Line of Credit Facility [Line Items] | |||||||
Ownership percentage of domestic subsidiaries | 100.00% | ||||||
Repayments of long-term debt | $ 31,300,000 | $ 4,500,000 | $ 4,700,000 | ||||
Loss on extinguishment of debt | 11,000,000 | 0 | 0 | ||||
Premium on early extinguishment of debt | 8,000,000 | 0 | $ 0 | ||||
Foreign subsidiaries borrowings | 40,200,000 | $ 42,400,000 | |||||
Foreign subsidiaries outstanding bank guarantees | $ 15,100,000 | ||||||
Weighted average interest rate | 6.11% | 6.10% | |||||
Machinery and equipment | |||||||
Line of Credit Facility [Line Items] | |||||||
Capital lease obligations (up to) | $ 20,300,000 | ||||||
Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Capital lease obligations (up to) | $ 50,000,000 | ||||||
Arkansas Development Finance Authority | Southwest Steel Processing LLC | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 11,000,000 | ||||||
Term loan, amount outstanding | $ 5,300,000 | ||||||
Term loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | |||||||
Repayments of long-term debt | $ 250,000,000 | ||||||
Revolving credit facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | 3.30% | ||||||
Foreign line of credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | 3.25% | ||||||
Seventh Amendment Credit Agreement | Revolving credit facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 350,000,000 | ||||||
Accordion feature, increase limit | 100,000,000 | ||||||
Remaining borrowing capacity | $ 194,200,000 | ||||||
Seventh Amendment Credit Agreement | Domestic Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Term loan, amount outstanding | 112,700,000 | ||||||
Seventh Amendment Credit Agreement | Revolving credit facility, European sub-limit | |||||||
Line of Credit Facility [Line Items] | |||||||
Term loan, amount outstanding | 12,000,000 | ||||||
Current borrowing capacity | 25,000,000 | ||||||
Seventh Amendment Credit Agreement | Revolving credit facility, Canadian sub-limit | |||||||
Line of Credit Facility [Line Items] | |||||||
Current borrowing capacity | $ 35,000,000 | ||||||
Senior Notes Due 2021 And Seventh Amendment To Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Loss on extinguishment of debt | 11,000,000 | ||||||
Premium on early extinguishment of debt | 8,000,000 | ||||||
Write off of deferred debt issuance cost | 2,500,000 | ||||||
Payments of financing costs | $ 500,000 | ||||||
8.125% senior notes due 2021 | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | 8.125% | ||||||
8.125% senior notes due 2021 | Senior Notes Due 2027 | |||||||
Line of Credit Facility [Line Items] | |||||||
Aggregate principal amount | $ 350,000,000 | ||||||
8.125% senior notes due 2021 | Senior Notes 6.625% Due 2027 | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes, interest rate | 6.625% | 6.625% | |||||
Line of Credit | Foreign line of credit | Banco Bolbao Vizcaya Argentaria, S.A. | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 27,000,000 | ||||||
Line of Credit | Financing Agreement | Revolving credit facility | Banco Bolbao Vizcaya Argentaria, S.A. | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 12,100,000 | ||||||
Term loan, amount outstanding | $ 0 | ||||||
Line of Credit | Financing Agreement | Foreign line of credit | Banco Bolbao Vizcaya Argentaria, S.A. | GH Electrotermia S.A. | |||||||
Line of Credit Facility [Line Items] | |||||||
Term loan, amount outstanding | $ 27,000,000 |
Financing Arrangements (Fair Va
Financing Arrangements (Fair Value of Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Carrying amount | $ 541.9 | $ 475 |
Level 1 | Reported Value Measurement | ||
Debt Instrument [Line Items] | ||
Carrying amount | 350 | |
Level 1 | Estimate of Fair Value Measurement | ||
Debt Instrument [Line Items] | ||
Fair value | $ 380.6 |
Financing Arrangements (Sched54
Financing Arrangements (Schedule of Maturities of Long-term Debt) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 8.6 |
2,019 | 9.8 |
2,020 | 9.5 |
2,021 | 15.3 |
2,022 | $ 125.9 |
Income Taxes (Income from Conti
Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income from continuing operations before income tax expense | |||
United States | $ 22.2 | $ 16.3 | $ 44.9 |
Outside the United States | 26.3 | 25.6 | 25.8 |
Income before income taxes | $ 48.5 | $ 41.9 | $ 70.7 |
Income Taxes (Income Taxes) (De
Income Taxes (Income Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current expense (benefit): | |||
Federal | $ 14 | $ 0.3 | $ 11.7 |
State | 0.6 | 0.2 | 0.7 |
Foreign | 7.6 | 6.6 | 6 |
Total | 22.2 | 7.1 | 18.4 |
Deferred expense (benefit): | |||
Federal | (5.5) | 0.9 | 2.9 |
State | 0.3 | 0.5 | 0.6 |
Foreign | 0.7 | 0.7 | (0.4) |
Total | (4.5) | 2.1 | 3.1 |
Income tax expense | $ 17.7 | $ 9.2 | $ 21.5 |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Rate reconciliation | |||
Tax at U.S. statutory rate | $ 16.9 | $ 14.7 | $ 24.7 |
Effect of state income taxes, net | 0.7 | 0.2 | 0.6 |
Effect of foreign operations | (5.2) | (2.1) | (1.6) |
Valuation allowance | 5.3 | 0.5 | (0.7) |
Uncertain tax positions | (2) | (4) | 0.1 |
Non-deductible items | 0.5 | 0.6 | 0.5 |
Non-deductible compensation | 0.4 | 0.8 | 1.2 |
Manufacturer's deduction | (0.8) | (0.5) | (1.1) |
Net impact of U.S. Tax Act | 3.3 | 0 | 0 |
Other, net | (1.4) | (1) | (2.2) |
Income tax expense | $ 17.7 | $ 9.2 | $ 21.5 |
Income Taxes (Significant Compo
Income Taxes (Significant Components of the Company's Net Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Postretirement benefit obligation | $ 2 | $ 3.6 |
Inventory | 9.9 | 13.7 |
Net operating loss and credit carryforwards | 16.1 | 10.8 |
Warranty reserve | 0.4 | 2.1 |
Accrued litigation | 0.1 | 2.8 |
Compensation | 4.2 | 4.1 |
Other | 4.9 | 9.8 |
Total deferred income tax assets | 37.6 | 46.9 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 10.4 | 16 |
Pension | 16.3 | 22.1 |
Intangible assets | 16.6 | 23.3 |
Other | 3.3 | 5.2 |
Total deferred income tax liabilities | 46.6 | 66.6 |
Net deferred income tax liabilities prior to valuation allowances | (9) | (19.7) |
Valuation allowances | (11.6) | (5.3) |
Net deferred income tax liability | $ (20.6) | $ (25) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||
Net impact of U.S. Tax Act | $ 3.3 | $ 0 | $ 0 |
Tax Cuts and Jobs Act Of 2017, provisional remeasurement of deferred tax assets | 10.9 | ||
Tax Cuts and Jobs Act Of 2017, provisional transition tax | $ 14.2 | ||
Deferred tax asset, cumulative loss position term | 3 years | 3 years | |
Valuation allowances | $ 11.6 | $ 5.3 | |
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 0.9 | 2.4 | |
Net interest and penalties | (0.3) | (1.4) | |
Payment of interest and penalties accrued | 0.2 | 0.4 | |
Possible decrease in unrecognized tax benefits | 0.1 | ||
Undistributed earnings | 136 | ||
Foreign Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards for income tax purposes | 32.4 | ||
Operating loss carryforward, subject to expiration | 7.9 | ||
Tax credit carryforward | 3.1 | ||
Valuation allowances | 6.3 | $ 4.5 | |
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforwards for income tax purposes | 2.1 | ||
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforward | $ 1.1 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Beginning and Ending amount of Unrecognized tax benefits | |||
Unrecognized Tax Benefit, Beginning of Period | $ 2.9 | $ 6.3 | $ 6.5 |
Gross Increases to Tax Positions Related to Current Year | 0.1 | 0 | 0 |
Gross Increases to Tax Positions Related to Prior Years | 0.6 | 0.3 | 0.3 |
Gross Decreases to Tax Positions Related to Prior Years | 0 | 0 | (0.1) |
Gross Decreases Related to Settlements with Taxing Authorities | (0.4) | 0 | 0 |
Expiration of Statute of Limitations | (1.9) | (3.7) | (0.4) |
Other | (0.1) | 0 | 0 |
Unrecognized Tax Benefit, End of Period | $ 1.2 | $ 2.9 | $ 6.3 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding — beginning of year (in shares) | shares | 38,000 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (38,000) |
Canceled or expired (in shares) | shares | 0 |
Outstanding — end of year (in shares) | shares | 0 |
Options exercisable, Number of shares (in shares) | shares | 0 |
Weighted Average Exercise Price | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 19.30 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 19.30 |
Canceled or expired (in dollars per share) | $ / shares | 0 |
Outstanding - end of year (in dollars per share) | $ / shares | 0 |
Options Exercisable - end of year, Weighted average remaining contractual term (in dollars per share) | $ / shares | $ 0 |
Outstanding - end of year, Weighted average remaining contractual term | 0 years |
Options Exercisable, Weighted average remaining contractual life | 0 years |
Outstanding - end of year, Aggregate intrinsic value | $ | $ 0 |
Options Exercisable, Aggregate intrinsic value | $ | $ 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Proceeds from the exercise of stock options | $ 0.7 | $ 0.5 | $ 1.2 |
Fair value of restricted stock units vested | 7 | 5.1 | 9 |
Unrecognized compensation expense | $ 9.3 | ||
Unrecognized compensation expense, expected weighted average recognition period | 1 year 8 months 10 days | ||
Number of shares available for grant (in shares) | 98,586 | ||
Restricted shares and performance shares | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8.6 | $ 10.6 | $ 7.3 |
Stock-Based Compensation (Sum63
Stock-Based Compensation (Summary of restricted share activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2017 | |
Time-Based | ||
Number of Shares | ||
Outstanding - beginning of year (in shares) | 216,916 | |
Vested (in shares) | (87,727) | |
Canceled or expired (in shares) | (2,000) | |
Outstanding - end of year (in shares) | 342,859 | |
Weighted Average Grant Date Fair Value | ||
Outstanding - beginning of year (in dollars per share) | $ 36.94 | |
Vested (in dollars per share) | 44.78 | |
Canceled or expired (in dollars per share) | 37.87 | |
Outstanding - end of year (in dollars per share) | $ 34.71 | |
Time-Based | Share-based Compensation Award, Tranche One | ||
Weighted Average Grant Date Fair Value | ||
Vesting period | 2 years | |
Time-Based | Share-based Compensation Award, Tranche Two | ||
Number of Shares | ||
Performance- to time-based (in shares) | (110,000) | |
Performance-Based | ||
Number of Shares | ||
Outstanding - beginning of year (in shares) | 165,000 | |
Granted (in shares) | 165,000 | |
Vested (in shares) | (55,000) | (55,000) |
Canceled or expired (in shares) | 0 | |
Outstanding - end of year (in shares) | 165,000 | |
Weighted Average Grant Date Fair Value | ||
Outstanding - beginning of year (in dollars per share) | $ 34.78 | |
Granted (in dollars per share) | 38.10 | |
Vested (in dollars per share) | 34.78 | |
Canceled or expired (in dollars per share) | 0 | |
Outstanding - end of year (in dollars per share) | $ 38.10 | |
Restricted Stock and Restricted Stock Units | ||
Number of Shares | ||
Granted (in shares) | 105,670 | |
Weighted Average Grant Date Fair Value | ||
Granted (in dollars per share) | $ 38.48 | |
Restricted Stock and Performance Shares | Share-based Compensation Award, Tranche One | ||
Number of Shares | ||
Performance- to time-based (in shares) | 110,000 | |
Weighted Average Grant Date Fair Value | ||
Performance- to time-based (in dollars per share) | $ 34.78 | |
Performance Shares and Service Time Shares | Share-based Compensation Award, Tranche Two | ||
Number of Shares | ||
Performance- to time-based (in shares) | (110,000) | |
Weighted Average Grant Date Fair Value | ||
Performance- to time-based (in dollars per share) | $ 34.78 | |
Restricted Stock Units (RSUs) | ||
Number of Shares | ||
Granted (in shares) | 4,390 |
Commitments, Contingencies an64
Commitments, Contingencies and Litigation Settlement (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Sep. 30, 2013 | May 31, 2013 | Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||||||
Litigation settlement gain | $ 3.3 | $ 3.3 | $ 0 | $ (2.2) | |||
TMK IPSCO | |||||||
Loss Contingencies [Line Items] | |||||||
Damages awarded | $ 2.2 | $ 5.2 | |||||
Loss contingency accrual | 7.3 | $ 7.3 | |||||
Direct Damages | TMK IPSCO | |||||||
Loss Contingencies [Line Items] | |||||||
Direct damages sought | $ 10 | ||||||
Settled Litigation | TMK IPSCO | |||||||
Loss Contingencies [Line Items] | |||||||
Payments for legal settlements | $ 4 |
Lease Arrangements (Schedule of
Lease Arrangements (Schedule of Future Minimum Lease Commitments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Capital Leases | |
2,018 | $ 9.4 |
2,019 | 5.9 |
2,020 | 4.3 |
2,021 | 1.3 |
2,022 | 0.1 |
Thereafter | 0 |
Total minimum lease payments | 21 |
Amounts representing interest | (0.7) |
Present value of minimum lease payments | 20.3 |
Current maturities | (9.1) |
Long-term capital lease obligation | 11.2 |
Operating leases | |
2,018 | 17.8 |
2,019 | 13.5 |
2,020 | 8.9 |
2,021 | 5.8 |
2,022 | 4.8 |
Thereafter | 13.3 |
Total minimum lease payments | $ 64.1 |
Pensions and Postretirement B66
Pensions and Postretirement Benefits (Change in benefit obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 120.2 | ||
Fair value of plan assets at end of year | 134.8 | $ 120.2 | |
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 58.5 | 58.4 | |
Service cost | 2.4 | 2.4 | $ 2.6 |
Interest cost | 1.8 | 1.8 | 2.3 |
Actuarial losses (gains) | 2.4 | 0.5 | |
Benefits and expenses paid | (4.6) | (4.6) | |
Benefit obligation at end of year | 60.5 | 58.5 | 58.4 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 120.2 | 117.3 | |
Actual return on plan assets | 20.2 | 8.3 | |
Company contributions | 0 | 0 | |
Cash transfer to fund postretirement benefit payments | (1) | (0.8) | |
Benefits and expenses paid | (4.6) | (4.6) | |
Fair value of plan assets at end of year | 134.8 | 120.2 | 117.3 |
Funded (underfunded) status of the plans | 74.3 | 61.7 | |
Postretirement Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 10 | 13.5 | |
Service cost | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | 0.6 |
Actuarial losses (gains) | 0.5 | (2.6) | |
Benefits and expenses paid | (1.5) | (1.2) | |
Benefit obligation at end of year | 9.3 | 10 | 13.5 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 1.5 | 1.2 | |
Cash transfer to fund postretirement benefit payments | 0 | 0 | |
Benefits and expenses paid | (1.5) | (1.2) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded (underfunded) status of the plans | $ (9.3) | $ (10) |
Lease Arrangements (Narrative)
Lease Arrangements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leased Assets [Line Items] | |||
Rental expense | $ 19.4 | $ 18.5 | $ 19.7 |
Affiliated Entity | |||
Operating Leased Assets [Line Items] | |||
Rental expense | $ 2.2 |
Pensions and Postretirement B68
Pensions and Postretirement Benefits (Amounts recognized in the balance sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension assets | $ 74.3 | $ 61.7 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension assets | 74.3 | 61.7 |
Other long-term liabilities | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Amounts recognized in consolidated balance sheets - net assets (liabilities) | 74.3 | 61.7 |
Amounts recognized in Accumulated other comprehensive loss | ||
Net actuarial loss | 16.5 | 25.8 |
Net prior service cost (credit) | 0.3 | 0.3 |
Accumulated other comprehensive loss | 16.8 | 26.1 |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension assets | 0 | 0 |
Other long-term liabilities | 1.1 | 1.2 |
Other long-term liabilities | 8.2 | 8.8 |
Amounts recognized in consolidated balance sheets - net assets (liabilities) | (9.3) | (10) |
Amounts recognized in Accumulated other comprehensive loss | ||
Net actuarial loss | 2.1 | 1.7 |
Net prior service cost (credit) | (0.1) | (0.2) |
Accumulated other comprehensive loss | $ 2 | $ 1.5 |
Lease Arrangements (Schedule 69
Lease Arrangements (Schedule of Capital Leased Assets) (Details) - Machinery and equipment - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Operating Leased Assets [Line Items] | ||
Leased properties under capital leases | $ 24.1 | $ 20.4 |
Less accumulated depreciation | (4.7) | (2.3) |
Capital lease assets, net | $ 19.4 | $ 18.1 |
Pensions and Postretirement B70
Pensions and Postretirement Benefits (Weighted-average asset allocation) (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Asset Category | ||
Target plan asset allocation | 100.00% | |
Actual plan asset allocation | 100.00% | 100.00% |
Equity securities | ||
Asset Category | ||
Actual plan asset allocation | 65.00% | 61.90% |
Debt securities | ||
Asset Category | ||
Actual plan asset allocation | 23.60% | 24.60% |
Other | ||
Asset Category | ||
Actual plan asset allocation | 11.40% | 13.50% |
Minimum | Equity securities | ||
Asset Category | ||
Target plan asset allocation | 45.00% | |
Minimum | Debt securities | ||
Asset Category | ||
Target plan asset allocation | 20.00% | |
Minimum | Other | ||
Asset Category | ||
Target plan asset allocation | 0.00% | |
Maximum | Equity securities | ||
Asset Category | ||
Target plan asset allocation | 75.00% | |
Maximum | Debt securities | ||
Asset Category | ||
Target plan asset allocation | 40.00% | |
Maximum | Other | ||
Asset Category | ||
Target plan asset allocation | 20.00% |
Pensions and Postretirement B71
Pensions and Postretirement Benefits (Assets by fair value hierarchy) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 134.8 | $ 120.2 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 120 | 106.2 |
Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 41.8 | 40 |
Common stock | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 41.8 | 40 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 39.8 | 29 |
Equity securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 39.8 | 29 |
Foreign stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.3 | 5.4 |
Foreign stock | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.3 | 5.4 |
U.S. Government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.8 | 8.1 |
U.S. Government obligations | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.8 | 8.1 |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13.7 | 14.1 |
Fixed income securities | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13.7 | 14.1 |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10.2 | 6.3 |
Corporate Bonds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10.2 | 6.3 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.4 | 3.3 |
Cash and cash equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.4 | 3.3 |
Common collective trust | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value: | 0.7 | 1.1 |
Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value: | $ 14.1 | $ 12.9 |
Pensions and Postretirement B72
Pensions and Postretirement Benefits (Fair value assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Assumptions used to determine benefit obligation at year-end | |||
Discount rate | 3.52% | 3.91% | 4.13% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Assumptions used to determine expense | |||
Discount rate for benefit obligations | 3.90% | 4.13% | 3.82% |
Discount rate for service costs | 3.98% | 4.20% | 3.82% |
Discount rate for interest costs | 3.20% | 3.27% | 3.82% |
Expected return on plan assets | 8.25% | 8.25% | 8.25% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Postretirement Benefits | |||
Assumptions used to determine benefit obligation at year-end | |||
Discount rate | 3.32% | 3.63% | 3.80% |
Health care cost trend rate | 6.50% | 6.50% | 6.75% |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Assumptions used to determine expense | |||
Discount rate for benefit obligations | 3.61% | 3.76% | 3.60% |
Discount rate for service costs | 4.24% | 4.44% | 3.60% |
Discount rate for interest costs | 2.90% | 2.89% | 3.60% |
Medical health care benefits rate increase | 6.50% | 6.50% | 6.75% |
Medical drug benefits rate increase | 6.50% | 6.50% | 6.75% |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Pensions and Postretirement B73
Pensions and Postretirement Benefits (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Supplemental retirement benefit, payment period, maximum (up to) | 13 years | |
Supplemental retirement benefit, credited service period (up to) | 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 | $ 200,000 | $ 600,000 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated net loss, prior service cost and net transition obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost | 300,000 | |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Estimated net loss, prior service cost and net transition obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost | 100,000 | |
Supplemental Employee Retirement Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Annual supplemental retirement benefit (up to) | $ 400,000 |
Pensions and Postretirement B74
Pensions and Postretirement Benefits (Components of net periodic benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Benefits | |||
Components of net periodic benefit cost | |||
Service costs | $ 2.4 | $ 2.4 | $ 2.6 |
Interest costs | 1.8 | 1.8 | 2.3 |
Expected return on plan assets | (9.7) | (9.4) | (10.2) |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Recognized net actuarial loss | 1.2 | 1.1 | 0.3 |
Net periodic benefit (gains) costs | (4.3) | (4.1) | (5) |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||
AOCI at beginning of year | 26.1 | 25.5 | 15.7 |
Net (loss) gain arising during the year | (1.1) | 1.7 | 10.1 |
Recognition of prior service credit | 0 | 0 | 0 |
Recognition of actuarial loss | (8.2) | (1.1) | (0.3) |
Total recognized in accumulated other comprehensive loss at end of year | 16.8 | 26.1 | 25.5 |
Postretirement Benefits | |||
Components of net periodic benefit cost | |||
Service costs | 0 | 0 | 0 |
Interest costs | 0.3 | 0.3 | 0.6 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (0.1) | (0.1) | (0.1) |
Recognized net actuarial loss | 0.1 | 0.1 | 0.5 |
Net periodic benefit (gains) costs | 0.3 | 0.3 | 1 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||
AOCI at beginning of year | 1.5 | 4.1 | 7.2 |
Net (loss) gain arising during the year | 0.5 | (2.6) | (2.7) |
Recognition of prior service credit | 0.1 | 0.1 | 0.1 |
Recognition of actuarial loss | (0.1) | (0.1) | (0.5) |
Total recognized in accumulated other comprehensive loss at end of year | $ 2 | $ 1.5 | $ 4.1 |
Pensions and Postretirement B75
Pensions and Postretirement Benefits (Expected future benefit payments) (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 5.1 |
2,019 | 4.4 |
2,020 | 4.5 |
2,021 | 4.6 |
2,022 | 4.4 |
2023 to 2027 | 22.8 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 0.1 |
2,019 | 0.1 |
2,020 | 0.1 |
2,021 | 0.1 |
2,022 | 0.1 |
2023 to 2027 | 0.4 |
Postretirement Benefits | Gross | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 1.2 |
2,019 | 1.1 |
2,020 | 1 |
2,021 | 0.9 |
2,022 | 0.9 |
2023 to 2027 | 3.6 |
Postretirement Benefits | Expected Medicare Subsidy | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 1.1 |
2,019 | 1 |
2,020 | 0.9 |
2,021 | 0.8 |
2,022 | 0.8 |
2023 to 2027 | $ 3.2 |
Pensions and Postretirement B76
Pensions and Postretirement Benefits (Effect of one-percentage-point change in the assumed health care cost trend rate) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Retirement Benefits [Abstract] | |
Effect on total of service and interest cost components, 1-percentage point increase | $ 0 |
Effect on total of service and interest cost components, 1-percentage point decrease | 0 |
Effect on postretirement benefit obligation, 1-percentage point increase | 0.6 |
Effect on postretirement benefit obligation, 1-percentage point decrease | $ (0.6) |
Accumulated Other Comprehensi77
Accumulated Other Comprehensive Income (Loss) (Components of accumulated comprehensive loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 231.7 | $ 202.3 | $ 177.9 |
Other comprehensive income (loss) | 24.8 | (12.7) | (16) |
Ending balance | 292 | 231.7 | 202.3 |
Cumulative Translation Adjustment | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (30.8) | (16.9) | (5.1) |
Other comprehensive income (loss) | 19.2 | (13.9) | (11.8) |
Ending balance | (11.6) | (30.8) | (16.9) |
Pension and Postretirement Benefits | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (11.9) | (13.1) | (8.9) |
Other comprehensive income (loss) | 5.6 | 1.2 | (4.2) |
Ending balance | (6.3) | (11.9) | (13.1) |
Total | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (42.7) | (30) | (14) |
Ending balance | $ (17.9) | $ (42.7) | $ (30) |
Supplemental Guarantor Inform78
Supplemental Guarantor Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 76.2 | $ 54.4 | $ 48.4 | $ 48.3 |
Accounts receivable, net | 242.6 | 194.4 | ||
Inventories, net | 282.8 | 240.6 | ||
Receivables from affiliates | 18.4 | 12.8 | ||
Other current assets | 60.9 | 53.3 | ||
Total current assets | 680.9 | 555.5 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany advances | 0 | 0 | ||
Net property, plant and equipment | 179.5 | 169.6 | ||
Goodwill | 100.2 | 86.6 | 82 | 89.5 |
Intangible assets, net | 99.5 | 96.6 | ||
Other long-term assets | 86.2 | 71.3 | ||
Total assets | 1,146.3 | 979.6 | 939.6 | |
Current liabilities: | ||||
Trade accounts payable | 173.7 | 133.7 | ||
Payables to affiliates | 7.1 | 7 | ||
Current portion of long-term debt and short-term debt | 17.7 | 30.8 | ||
Other accrued expenses | 86 | 78.6 | ||
Total current liabilities | 284.5 | 250.1 | ||
Long-term liabilities, less current portion: | ||||
Debt | 515.5 | 439 | ||
Deferred tax liabilities | 23.6 | 29 | ||
Other long-term liabilities | 30.7 | 29.8 | ||
Total long-term liabilities | 569.8 | 497.8 | ||
Intercompany advances | 0 | 0 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 279.9 | 221.7 | ||
Noncontrolling interests | 12.1 | 10 | ||
Total equity | 292 | 231.7 | 202.3 | 177.9 |
Total liabilities and shareholder's equity | 1,146.3 | 979.6 | ||
Reportable Legal Entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Receivables from affiliates | 0.6 | 0 | ||
Other current assets | 0.9 | 0.7 | ||
Total current assets | 1.5 | 0.7 | ||
Investment in subsidiaries | 512.3 | 492.8 | ||
Intercompany advances | 364.8 | 296.5 | ||
Net property, plant and equipment | 6 | 6.2 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 72 | 62.8 | ||
Total assets | 956.6 | 859 | ||
Current liabilities: | ||||
Trade accounts payable | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Current portion of long-term debt and short-term debt | 0 | 13.2 | ||
Other accrued expenses | 12.4 | 10.5 | ||
Total current liabilities | 12.4 | 23.7 | ||
Long-term liabilities, less current portion: | ||||
Debt | 455.3 | 389.2 | ||
Deferred tax liabilities | 0 | 0 | ||
Other long-term liabilities | 25.3 | 16.1 | ||
Total long-term liabilities | 480.6 | 405.3 | ||
Intercompany advances | 171.6 | 198.3 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 279.9 | 221.7 | ||
Noncontrolling interests | 12.1 | 10 | ||
Total equity | 292 | 231.7 | ||
Total liabilities and shareholder's equity | 956.6 | 859 | ||
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 0.2 | 0 | 0.1 | 3.8 |
Accounts receivable, net | 149.5 | 125.2 | ||
Inventories, net | 198.9 | 172.9 | ||
Receivables from affiliates | 0 | 0 | ||
Other current assets | 34.8 | 28.3 | ||
Total current assets | 383.4 | 326.4 | ||
Investment in subsidiaries | 267.4 | 213.8 | ||
Intercompany advances | 85.2 | 78.1 | ||
Net property, plant and equipment | 103.5 | 98.2 | ||
Goodwill | 58.9 | 56.8 | ||
Intangible assets, net | 60 | 64.8 | ||
Other long-term assets | 3.4 | 4.5 | ||
Total assets | 961.8 | 842.6 | ||
Current liabilities: | ||||
Trade accounts payable | 121.8 | 100.3 | ||
Payables to affiliates | 0 | 0 | ||
Current portion of long-term debt and short-term debt | 9 | 6.4 | ||
Other accrued expenses | 32.7 | 36.8 | ||
Total current liabilities | 163.5 | 143.5 | ||
Long-term liabilities, less current portion: | ||||
Debt | 9.3 | 12.2 | ||
Deferred tax liabilities | 15.5 | 20.4 | ||
Other long-term liabilities | 1.2 | 8.5 | ||
Total long-term liabilities | 26 | 41.1 | ||
Intercompany advances | 289.5 | 192.2 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 482.8 | 465.8 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 482.8 | 465.8 | ||
Total liabilities and shareholder's equity | 961.8 | 842.6 | ||
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 76 | 54.4 | 48.3 | 44.5 |
Accounts receivable, net | 93.1 | 69.2 | ||
Inventories, net | 83.9 | 67.7 | ||
Receivables from affiliates | 17.8 | 12.8 | ||
Other current assets | 25.2 | 24.3 | ||
Total current assets | 296 | 228.4 | ||
Investment in subsidiaries | 0 | 0 | ||
Intercompany advances | 112.9 | 110.5 | ||
Net property, plant and equipment | 70 | 65.2 | ||
Goodwill | 41.3 | 29.8 | ||
Intangible assets, net | 39.5 | 31.8 | ||
Other long-term assets | 10.8 | 4 | ||
Total assets | 570.5 | 469.7 | ||
Current liabilities: | ||||
Trade accounts payable | 51.9 | 33.4 | ||
Payables to affiliates | 7.1 | 7 | ||
Current portion of long-term debt and short-term debt | 8.7 | 11.2 | ||
Other accrued expenses | 40.9 | 31.3 | ||
Total current liabilities | 108.6 | 82.9 | ||
Long-term liabilities, less current portion: | ||||
Debt | 50.9 | 37.6 | ||
Deferred tax liabilities | 8.1 | 8.6 | ||
Other long-term liabilities | 4.2 | 5.2 | ||
Total long-term liabilities | 63.2 | 51.4 | ||
Intercompany advances | 101.8 | 94.6 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 284.8 | 230.8 | ||
Noncontrolling interests | 12.1 | 10 | ||
Total equity | 296.9 | 240.8 | ||
Total liabilities and shareholder's equity | 570.5 | 469.7 | ||
Reclassifications/ Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Receivables from affiliates | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Investment in subsidiaries | (779.7) | (706.6) | ||
Intercompany advances | (562.9) | (485.1) | ||
Net property, plant and equipment | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (1,342.6) | (1,191.7) | ||
Current liabilities: | ||||
Trade accounts payable | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Current portion of long-term debt and short-term debt | 0 | 0 | ||
Other accrued expenses | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term liabilities, less current portion: | ||||
Debt | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total long-term liabilities | 0 | 0 | ||
Intercompany advances | (562.9) | (485.1) | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | (767.6) | (696.6) | ||
Noncontrolling interests | (12.1) | (10) | ||
Total equity | (779.7) | (706.6) | ||
Total liabilities and shareholder's equity | $ (1,342.6) | $ (1,191.7) |
Supplemental Guarantor Inform79
Supplemental Guarantor Information (Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidating statement of operations | ||||
Net sales | $ 1,412.9 | $ 1,276.9 | $ 1,463.8 | |
Cost of sales | 1,178.3 | 1,073.9 | 1,228.6 | |
Gross profit | 234.6 | 203 | 235.2 | |
Selling, general and administrative expenses | 146.9 | 128.9 | 134.4 | |
Litigation (settlement gains) judgment costs | $ (3.3) | (3.3) | 0 | 2.2 |
Asset impairment charges | 0 | 4 | 0 | |
Income (loss) from subsidiaries | 0 | 0 | 0 | |
Operating income | 91 | 70.1 | 98.6 | |
Interest expense | 31.5 | 28.2 | 27.9 | |
Loss on extinguishment of debt | 11 | 0 | 0 | |
Income before income taxes | 48.5 | 41.9 | 70.7 | |
Income tax expense | 17.7 | 9.2 | 21.5 | |
Net income | 30.8 | 32.7 | 49.2 | |
Net income attributable to noncontrolling interest | (1) | (0.5) | (0.6) | |
Net income attributable to ParkOhio common shareholder | 29.8 | 32.2 | 48.6 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 19.2 | (13.9) | (11.8) | |
Recognition of actuarial loss (gain), net of tax | 5.6 | 1.2 | (4.2) | |
Total comprehensive income, net of tax | 55.6 | 20 | 33.2 | |
Comprehensive income attributable to noncontrolling interest | (1) | (0.5) | (0.6) | |
Comprehensive income attributable to ParkOhio common shareholder | 54.6 | 19.5 | 32.6 | |
Reportable Legal Entities | Parent | ||||
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 | 28.3 | 24.2 | 28.6 | |
Litigation (settlement gains) judgment costs | 0 | 2.2 | ||
Asset impairment charges | 0 | |||
Income (loss) from subsidiaries | 98 | 84 | 106.6 | |
Operating income | 69.7 | 59.8 | 75.8 | |
Interest expense | 28.5 | 27.1 | 26.6 | |
Loss on extinguishment of debt | 11 | |||
Income before income taxes | 30.2 | 32.7 | 49.2 | |
Income tax expense | 0 | 0 | 0 | |
Net income | 30.2 | 32.7 | 49.2 | |
Net income attributable to noncontrolling interest | (1) | (0.5) | (0.6) | |
Net income attributable to ParkOhio common shareholder | 29.2 | 32.2 | 48.6 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 19.2 | (13.9) | (11.8) | |
Recognition of actuarial loss (gain), net of tax | 5.6 | 1.2 | (4.2) | |
Total comprehensive income, net of tax | 55 | 20 | 33.2 | |
Comprehensive income attributable to noncontrolling interest | (1) | (0.5) | (0.6) | |
Comprehensive income attributable to ParkOhio common shareholder | 54 | 19.5 | 32.6 | |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
Consolidating statement of operations | ||||
Net sales | 1,028.6 | 985.6 | 1,135.5 | |
Cost of sales | 873.4 | 848.6 | 967.6 | |
Gross profit | 155.2 | 137 | 167.9 | |
Selling, general and administrative expenses | 72.9 | 69.3 | 70.6 | |
Litigation (settlement gains) judgment costs | (3.3) | 0 | ||
Asset impairment charges | 4 | |||
Income (loss) from subsidiaries | 20.7 | 19.2 | 20.6 | |
Operating income | 106.3 | 82.9 | 117.9 | |
Interest expense | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | |||
Income before income taxes | 106.3 | 82.9 | 117.9 | |
Income tax expense | 9.5 | 1.1 | 14.7 | |
Net income | 96.8 | 81.8 | 103.2 | |
Net income attributable to noncontrolling interest | 0 | 0 | 0 | |
Net income attributable to ParkOhio common shareholder | 96.8 | 81.8 | 103.2 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 0 | 0 | 0 | |
Recognition of actuarial loss (gain), net of tax | 5.6 | 1.2 | (4.2) | |
Total comprehensive income, net of tax | 102.4 | 83 | 99 | |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | |
Comprehensive income attributable to ParkOhio common shareholder | 102.4 | 83 | 99 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
Consolidating statement of operations | ||||
Net sales | 384.3 | 291.3 | 328.3 | |
Cost of sales | 304.9 | 225.3 | 261 | |
Gross profit | 79.4 | 66 | 67.3 | |
Selling, general and administrative expenses | 45.7 | 35.4 | 35.2 | |
Litigation (settlement gains) judgment costs | 0 | 0 | ||
Asset impairment charges | 0 | |||
Income (loss) from subsidiaries | 0 | 0 | 0 | |
Operating income | 33.7 | 30.6 | 32.1 | |
Interest expense | 3 | 1.1 | 1.3 | |
Loss on extinguishment of debt | 0 | |||
Income before income taxes | 30.7 | 29.5 | 30.8 | |
Income tax expense | 8.2 | 8.1 | 6.8 | |
Net income | 22.5 | 21.4 | 24 | |
Net income attributable to noncontrolling interest | (1) | (0.5) | (0.6) | |
Net income attributable to ParkOhio common shareholder | 21.5 | 20.9 | 23.4 | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 19.2 | (13.9) | (11.8) | |
Recognition of actuarial loss (gain), net of tax | 0 | 0 | 0 | |
Total comprehensive income, net of tax | 41.7 | 7.5 | 12.2 | |
Comprehensive income attributable to noncontrolling interest | (1) | (0.5) | (0.6) | |
Comprehensive income attributable to ParkOhio common shareholder | 40.7 | 7 | 11.6 | |
Reclassifications/ Eliminations | ||||
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 (settlement gains) judgment costs | 0 | 0 | ||
Asset impairment charges | 0 | |||
Income (loss) from subsidiaries | (118.7) | (103.2) | (127.2) | |
Operating income | (118.7) | (103.2) | (127.2) | |
Interest expense | 0 | 0 | 0 | |
Loss on extinguishment of debt | 0 | |||
Income before income taxes | (118.7) | (103.2) | (127.2) | |
Income tax expense | 0 | 0 | 0 | |
Net income | (118.7) | (103.2) | (127.2) | |
Net income attributable to noncontrolling interest | 1 | 0.5 | 0.6 | |
Net income attributable to ParkOhio common shareholder | (117.7) | (102.7) | (126.6) | |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (19.2) | 13.9 | 11.8 | |
Recognition of actuarial loss (gain), net of tax | (5.6) | (1.2) | 4.2 | |
Total comprehensive income, net of tax | (143.5) | (90.5) | (111.2) | |
Comprehensive income attributable to noncontrolling interest | 1 | 0.5 | 0.6 | |
Comprehensive income attributable to ParkOhio common shareholder | $ (142.5) | $ (90) | $ (110.6) |
Supplemental Guarantor Inform80
Supplemental Guarantor Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 17, 2017 | |
OPERATING ACTIVITIES | ||||
Net cash provided (used) by operating activities | $ 42 | $ 71.5 | $ 37.2 | |
INVESTING ACTIVITIES | ||||
Purchases of property, plant and equipment | (27.8) | (28.5) | (36.5) | |
Business acquisitions, net of cash acquired | (39.7) | (23.4) | 0 | |
Net cash used by investing activities | (67.5) | (51.9) | (36.5) | |
FINANCING ACTIVITIES | ||||
Intercompany account change | 0 | 0 | 0 | |
Proceeds from other long-term debt | 0 | 34.9 | 3.4 | |
Payments on term loans and other debt | (31.3) | (4.5) | (4.7) | |
Proceeds from revolving credit facility, net | (8.1) | (36.2) | 7.9 | |
Payments on capital lease facilities | (1.2) | |||
Payments on capital lease facilities | 1.5 | 13.8 | ||
Issuance of 6.625% senior notes due 2027 | 350 | 0 | 0 | |
Bank financing costs | (7.6) | 0 | 0 | |
Redemption of 8.125% senior notes due 2021 | (250) | 0 | 0 | |
Premium on early extinguishment of debt | (8) | 0 | 0 | |
Dividend paid to parent | (5) | (2.5) | (17) | |
Dividends | (0.6) | 0 | 0 | |
Other | 0.7 | (2.6) | 0.9 | |
Net cash provided (used) by financing activities | 41.6 | (12.1) | 4.3 | |
Effect of exchange rate changes on cash | 5.7 | (1.5) | (4.9) | |
Increase in cash and cash equivalents | 21.8 | 6 | 0.1 | |
Cash and cash equivalents at beginning of year | 54.4 | 48.4 | 48.3 | |
Cash and cash equivalents at end of year | 76.2 | 54.4 | 48.4 | |
Parent | ||||
INVESTING ACTIVITIES | ||||
Business acquisitions, net of cash acquired | 0 | |||
Guarantor Subsidiaries | ||||
INVESTING ACTIVITIES | ||||
Business acquisitions, net of cash acquired | 0 | |||
Non-Guarantor Subsidiaries | ||||
INVESTING ACTIVITIES | ||||
Business acquisitions, net of cash acquired | (23.4) | |||
Reportable Legal Entities | Parent | ||||
OPERATING ACTIVITIES | ||||
Net cash provided (used) by operating activities | (40.2) | (31.5) | (36.4) | |
INVESTING ACTIVITIES | ||||
Purchases of property, plant and equipment | (0.3) | 0 | 0 | |
Business acquisitions, net of cash acquired | 0 | |||
Net cash used by investing activities | (0.3) | 0 | 0 | |
FINANCING ACTIVITIES | ||||
Intercompany account change | 4.1 | 73.9 | 45.6 | |
Proceeds from other long-term debt | 1.4 | 2.3 | ||
Payments on term loans and other debt | (23.6) | (4.5) | (3.3) | |
Proceeds from revolving credit facility, net | (20.1) | (36.2) | 7.9 | |
Payments on capital lease facilities | 0 | |||
Payments on capital lease facilities | 0 | 0 | ||
Issuance of 6.625% senior notes due 2027 | 350 | |||
Bank financing costs | (7.6) | |||
Redemption of 8.125% senior notes due 2021 | (250) | |||
Premium on early extinguishment of debt | (8) | |||
Dividend paid to parent | (5) | (2.5) | (17) | |
Dividends | 0 | |||
Other | 0.7 | (0.6) | 0.9 | |
Net cash provided (used) by financing activities | 40.5 | 31.5 | 36.4 | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Increase in cash and cash equivalents | 0 | 0 | 0 | |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | |
Cash and cash equivalents at end of year | 0 | 0 | 0 | |
Reportable Legal Entities | Guarantor Subsidiaries | ||||
OPERATING ACTIVITIES | ||||
Net cash provided (used) by operating activities | 56.3 | 119.2 | 82 | |
INVESTING ACTIVITIES | ||||
Purchases of property, plant and equipment | (17.6) | (20.4) | (29.6) | |
Business acquisitions, net of cash acquired | (18.3) | |||
Net cash used by investing activities | (35.9) | (20.4) | (29.6) | |
FINANCING ACTIVITIES | ||||
Intercompany account change | (19.9) | (98.2) | (69) | |
Proceeds from other long-term debt | 0.1 | 1.1 | ||
Payments on term loans and other debt | (0.9) | 0 | 0 | |
Proceeds from revolving credit facility, net | 0 | 0 | 0 | |
Payments on capital lease facilities | (0.8) | |||
Payments on capital lease facilities | 0.6 | 11.8 | ||
Issuance of 6.625% senior notes due 2027 | 0 | |||
Bank financing costs | 0 | |||
Redemption of 8.125% senior notes due 2021 | 0 | |||
Premium on early extinguishment of debt | 0 | |||
Dividend paid to parent | 0 | 0 | 0 | |
Dividends | 0 | |||
Other | 0 | 0 | 0 | |
Net cash provided (used) by financing activities | (20.2) | (98.9) | (56.1) | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Increase in cash and cash equivalents | 0.2 | (0.1) | (3.7) | |
Cash and cash equivalents at beginning of year | 0 | 0.1 | 3.8 | |
Cash and cash equivalents at end of year | 0.2 | 0 | 0.1 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | ||||
OPERATING ACTIVITIES | ||||
Net cash provided (used) by operating activities | 22.3 | 14.2 | 33.2 | |
INVESTING ACTIVITIES | ||||
Purchases of property, plant and equipment | (9.9) | (8.1) | (6.9) | |
Business acquisitions, net of cash acquired | (21.4) | |||
Net cash used by investing activities | (31.3) | (31.5) | (6.9) | |
FINANCING ACTIVITIES | ||||
Intercompany account change | 19.4 | (6.1) | (18.2) | |
Proceeds from other long-term debt | 33.4 | 0 | ||
Payments on term loans and other debt | (6.8) | 0 | (1.4) | |
Proceeds from revolving credit facility, net | 12 | 0 | 0 | |
Payments on capital lease facilities | (0.4) | |||
Payments on capital lease facilities | 0.9 | 2 | ||
Issuance of 6.625% senior notes due 2027 | 0 | |||
Bank financing costs | 0 | |||
Redemption of 8.125% senior notes due 2021 | 0 | |||
Premium on early extinguishment of debt | 0 | |||
Dividend paid to parent | 0 | 0 | 0 | |
Dividends | (0.6) | |||
Other | 0 | (2) | 0 | |
Net cash provided (used) by financing activities | 24.9 | 24.9 | (17.6) | |
Effect of exchange rate changes on cash | 5.7 | (1.5) | (4.9) | |
Increase in cash and cash equivalents | 21.6 | 6.1 | 3.8 | |
Cash and cash equivalents at beginning of year | 54.4 | 48.3 | 44.5 | |
Cash and cash equivalents at end of year | 76 | 54.4 | 48.3 | |
Reclassifications/ Eliminations | ||||
OPERATING ACTIVITIES | ||||
Net cash provided (used) by operating activities | 3.6 | (30.4) | (41.6) | |
INVESTING ACTIVITIES | ||||
Purchases of property, plant and equipment | 0 | 0 | 0 | |
Business acquisitions, net of cash acquired | 0 | 0 | ||
Net cash used by investing activities | 0 | 0 | 0 | |
FINANCING ACTIVITIES | ||||
Intercompany account change | (3.6) | 30.4 | 41.6 | |
Proceeds from other long-term debt | 0 | 0 | ||
Payments on term loans and other debt | 0 | 0 | 0 | |
Proceeds from revolving credit facility, net | 0 | 0 | 0 | |
Payments on capital lease facilities | 0 | |||
Payments on capital lease facilities | 0 | 0 | ||
Issuance of 6.625% senior notes due 2027 | 0 | |||
Bank financing costs | 0 | |||
Redemption of 8.125% senior notes due 2021 | 0 | |||
Premium on early extinguishment of debt | 0 | |||
Dividend paid to parent | 0 | 0 | 0 | |
Dividends | 0 | |||
Other | 0 | 0 | 0 | |
Net cash provided (used) by financing activities | (3.6) | 30.4 | 41.6 | |
Effect of exchange rate changes on cash | 0 | 0 | 0 | |
Increase in cash and cash equivalents | 0 | 0 | 0 | |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | |
Cash and cash equivalents at end of year | $ 0 | $ 0 | $ 0 | |
8.125% senior notes due 2021 | ||||
FINANCING ACTIVITIES | ||||
Senior notes, interest rate | 8.125% | |||
Senior Notes 6.625% Due 2027 | 8.125% senior notes due 2021 | ||||
FINANCING ACTIVITIES | ||||
Senior notes, interest rate | 6.625% | 6.625% | ||
Senior Notes 8.125% Due 2021 | 8.125% senior notes due 2021 | ||||
FINANCING ACTIVITIES | ||||
Senior notes, interest rate | 8.125% |
Schedule II _ Valuation and Q81
Schedule II — Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Trade receivable allowances | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | $ 4 | $ 3.3 | $ 4.1 |
Charged to Costs and Expenses | 1.5 | 1.5 | 0.4 |
Deductions and Other | (1) | (0.8) | (1.2) |
Balance at End of Period | 4.5 | 4 | 3.3 |
Inventory reserves | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | 30.2 | 29 | 29.9 |
Charged to Costs and Expenses | 5.6 | 6 | 4.2 |
Deductions and Other | (6) | (4.8) | (5.1) |
Balance at End of Period | 29.8 | 30.2 | 29 |
Tax valuation allowances | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | 5.3 | 4.8 | 7.1 |
Charged to Costs and Expenses | 5.6 | 0.5 | (0.7) |
Deductions and Other | 0.7 | 0 | (1.6) |
Balance at End of Period | $ 11.6 | $ 5.3 | $ 4.8 |