Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 333-43005-01 | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-6520107 | |
Entity Address, Address Line One | 6065 Parkland Boulevard, | |
Entity Address, City or Town | Cleveland, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44124 | |
City Area Code | 440 | |
Local Phone Number | 947-2000 | |
Entity Current Reporting Status | No | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 100 | |
Entity Registrant Name | PARK OHIO INDUSTRIES INC/OH | |
Entity Central Index Key | 0001068148 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 50.4 | $ 44.8 |
Accounts receivable, net | 253.7 | 248.1 |
Inventories, net | 386.4 | 310.9 |
Receivable from affiliates | 28.7 | 25.8 |
Prepaid and other current assets | 81.5 | 92.2 |
Total current assets | 800.7 | 721.8 |
Property, plant and equipment, net | 232 | 239.1 |
Operating lease right-of-use assets | 66.9 | 68.6 |
Goodwill | 112 | 110.9 |
Intangible assets, net | 83 | 86.8 |
Other long-term assets | 95.8 | 90.1 |
Total assets | 1,390.4 | 1,317.3 |
Current liabilities: | ||
Trade accounts payable | 185.6 | 166.7 |
Payable to affiliates | 7.2 | 7.2 |
Current portion of long-term debt and short-term debt | 8.9 | 11.6 |
Current portion of operating lease liabilities | 13.3 | 12.9 |
Accrued expenses and other | 122.3 | 116.2 |
Total current liabilities | 337.3 | 314.6 |
Long-term liabilities, less current portion: | ||
Long-term debt | 592.1 | 517.8 |
Long-term operating lease liabilities | 54.2 | 56.7 |
Other long-term liabilities | 56.2 | 61.2 |
Total long-term liabilities | 702.5 | 635.7 |
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 338.4 | 353.2 |
Noncontrolling interests | 12.2 | 13.8 |
Total equity | 350.6 | 367 |
Total liabilities and shareholder's equity | $ 1,390.4 | $ 1,317.3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 358.5 | $ 340.2 | $ 1,068.1 | $ 934.8 |
Cost of sales | 318.4 | 290.5 | 936.1 | 817 |
Gross profit | 40.1 | 49.7 | 132 | 117.8 |
Selling, general and administrative expenses | 44.9 | 38.6 | 127.6 | 114.2 |
Operating (loss) income | (4.8) | 11.1 | 4.4 | 3.6 |
Other components of pension income and other postretirement benefits expense, net | 2.4 | 1.9 | 7.3 | 5.5 |
Interest expense, net | (7.6) | (7.4) | (22.4) | (22.9) |
(Loss) income before income taxes | (10) | 5.6 | (10.7) | (13.8) |
Income tax benefit (expense) | 2.8 | (0.3) | 3.7 | 3.8 |
Net (loss) income | (7.2) | 5.3 | (7) | (10) |
Net loss attributable to noncontrolling interests | 0.2 | 0.1 | 0.5 | 0.4 |
Net (loss) income attributable to Park-Ohio Industries, Inc. common shareholder | $ (7) | $ 5.4 | $ (6.5) | $ (9.6) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (7.2) | $ 5.3 | $ (7) | $ (10) |
Other comprehensive (loss) income, net of tax: | ||||
Currency translation | (5.5) | 12.6 | (8.2) | (1.1) |
Pension and other postretirement benefits | 0.2 | 0.3 | 0.6 | 1.2 |
Total other comprehensive (loss) income | (5.3) | 12.9 | (7.6) | 0.1 |
Total comprehensive (loss) income, net of tax | (12.5) | 18.2 | (14.6) | (9.9) |
Comprehensive loss attributable to noncontrolling interests | 0.2 | 0.1 | 0.5 | 0.4 |
Comprehensive (loss) income attributable to Park-Ohio Industries, Inc. common shareholder | $ (12.3) | $ 18.3 | $ (14.1) | $ (9.5) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest |
Beginning balance at Dec. 31, 2019 | $ 357.8 | $ 0 | $ 127.3 | $ 253.4 | $ (37) | $ 14.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (14.5) | 1.5 | (16.1) | 0.1 | ||
Stock-based compensation expense | 1.4 | 1.4 | ||||
Dividend paid to parent | (9.5) | (9.5) | ||||
Ending balance at Mar. 31, 2020 | 335.2 | 0 | 128.7 | 245.4 | (53.1) | 14.2 |
Beginning balance at Dec. 31, 2019 | 357.8 | 0 | 127.3 | 253.4 | (37) | 14.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (9.9) | |||||
Ending balance at Sep. 30, 2020 | 342.8 | 0 | 131.7 | 234.3 | (36.9) | 13.7 |
Beginning balance at Mar. 31, 2020 | 335.2 | 0 | 128.7 | 245.4 | (53.1) | 14.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (13.6) | (16.5) | 3.3 | (0.4) | ||
Stock-based compensation expense | 1.3 | 1.3 | ||||
Ending balance at Jun. 30, 2020 | 322.9 | 0 | 130 | 228.9 | (49.8) | 13.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 18.2 | 5.4 | 12.9 | (0.1) | ||
Stock-based compensation expense | 1.6 | 1.6 | ||||
Ending balance at Sep. 30, 2020 | 342.8 | 0 | 131.7 | 234.3 | (36.9) | 13.7 |
Beginning balance at Dec. 31, 2020 | 367 | 0 | 133.4 | 237.9 | (18.1) | 13.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 1.5 | 5.7 | (4.1) | (0.1) | ||
Stock-based compensation expense | 1.6 | 1.6 | ||||
Dividend paid to parent | (2) | (2) | ||||
Increase in Park-Ohio ownership interest | 0 | 1.1 | (1.1) | |||
Ending balance at Mar. 31, 2021 | 368.1 | 0 | 136.1 | 241.6 | (22.2) | 12.6 |
Beginning balance at Dec. 31, 2020 | 367 | 0 | 133.4 | 237.9 | (18.1) | 13.8 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (14.6) | |||||
Ending balance at Sep. 30, 2021 | 350.6 | 0 | 139.2 | 224.9 | (25.7) | 12.2 |
Beginning balance at Mar. 31, 2021 | 368.1 | 0 | 136.1 | 241.6 | (22.2) | 12.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (3.6) | (5.2) | 1.8 | (0.2) | ||
Stock-based compensation expense | 1.4 | 1.4 | ||||
Dividend paid to parent | (2) | (2) | ||||
Ending balance at Jun. 30, 2021 | 363.9 | 0 | 137.5 | 234.4 | (20.4) | 12.4 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | (12.5) | (7) | (5.3) | (0.2) | ||
Stock-based compensation expense | 1.7 | 1.7 | ||||
Dividend paid to parent | (2.5) | (2.5) | ||||
Ending balance at Sep. 30, 2021 | $ 350.6 | $ 0 | $ 139.2 | $ 224.9 | $ (25.7) | $ 12.2 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net loss | $ (7) | $ (10) |
Adjustments to reconcile net loss to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 28.9 | 26.9 |
Stock-based compensation expense | 4.7 | 4.4 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (6.6) | 9.6 |
Inventories | (74.7) | 20.8 |
Prepaid and other current assets | 11.5 | 0.1 |
Accounts payable and accrued expenses | 24.5 | (17.9) |
Other | (9.5) | (1.7) |
Net cash (used) provided by operating activities | (28.2) | 32.2 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (24.9) | (14.9) |
Business acquisition, net of cash acquired | (5.4) | 0 |
Proceeds from sale of an asset | 0 | 1.4 |
Net cash used by investing activities | (30.3) | (13.5) |
FINANCING ACTIVITIES | ||
Proceeds (payments) from revolving credit facility, net | 78.4 | (7.7) |
Payments on other debt | (5.4) | (8.1) |
Proceeds from other debt | 2.3 | 3.8 |
Payments on finance lease facilities, net | (3.5) | (2.6) |
Dividends paid to Parent | (6.5) | (9.5) |
Net cash provided (used) by financing activities | 65.3 | (24.1) |
Effect of exchange rate changes on cash | (1.2) | (0.3) |
Increase (decrease) in cash and cash equivalents | 5.6 | (5.7) |
Cash and cash equivalents at beginning of period | 44.8 | 46.7 |
Cash and cash equivalents at end of period | $ 50.4 | $ 41 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Park-Ohio Industries, Inc. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. Park-Ohio Industries, Inc. is a wholly-owned subsidiary of Park-Ohio Holdings Corp. (“Holdings”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine- month periods ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate. The guidance is effective upon issuance and may be adopted on any date on or after March 12, 2020. However, the relief is temporary and generally cannot be applied to contract modifications that occur after December 31, 2022 or hedging relationships entered into or evaluated after that date. The Company is currently evaluating the expected impact of this standard. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | RevenueWe disaggregate our revenue by product line and geographic region of our customer, as we believe these metrics best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In millions) PRODUCT LINE Supply Technologies $ 134.5 $ 112.1 $ 406.2 $ 320.1 Engineered specialty fasteners and other products 19.5 19.9 60.5 47.1 Supply Technologies Segment 154.0 132.0 466.7 367.2 Fuel, rubber and plastic products 80.8 86.8 238.2 211.3 Aluminum products 39.4 40.1 117.5 98.7 Assembly Components Segment 120.2 126.9 355.7 310.0 Industrial equipment 62.0 56.2 179.9 175.7 Forged and machined products 22.3 25.1 65.8 81.9 Engineered Products Segment 84.3 81.3 245.7 257.6 Total revenues $ 358.5 $ 340.2 $ 1,068.1 $ 934.8 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended September 30, 2021 GEOGRAPHIC REGION United States $ 92.5 $ 77.9 $ 46.4 $ 216.8 Europe 27.9 3.4 14.8 46.1 Asia 14.7 6.6 12.0 33.3 Mexico 15.6 17.8 5.0 38.4 Canada 2.9 14.1 3.5 20.5 Other 0.4 0.4 2.6 3.4 Total $ 154.0 $ 120.2 $ 84.3 $ 358.5 Three Months Ended September 30, 2020 GEOGRAPHIC REGION United States $ 77.0 $ 86.1 $ 43.0 $ 206.1 Europe 21.6 3.8 16.1 41.5 Asia 10.3 9.1 12.6 32.0 Mexico 20.5 10.0 2.0 32.5 Canada 2.5 17.4 6.0 25.9 Other 0.1 0.5 1.6 2.2 Total $ 132.0 $ 126.9 $ 81.3 $ 340.2 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Nine Months Ended September 30, 2021 GEOGRAPHIC REGION United States $ 281.4 $ 241.8 $ 126.7 $ 649.9 Europe 84.7 10.7 46.3 141.7 Asia 42.4 19.0 38.5 99.9 Mexico 48.2 38.6 13.4 100.2 Canada 8.6 44.3 12.5 65.4 Other 1.4 1.3 8.3 11.0 Total $ 466.7 $ 355.7 $ 245.7 $ 1,068.1 Nine Months Ended September 30, 2020 GEOGRAPHIC REGION United States $ 228.3 $ 212.9 $ 141.7 $ 582.9 Europe 59.3 10.2 42.4 111.9 Asia 31.5 19.8 46.1 97.4 Mexico 40.0 23.8 5.5 69.3 Canada 7.0 42.3 15.1 64.4 Other 1.1 1.0 6.8 8.9 Total $ 367.2 $ 310.0 $ 257.6 $ 934.8 For over time arrangements, contract liabilities primarily relate to advances or deposits received from the Company’s customers before revenue is recognized. These amounts, which totaled $38.6 million and $37.4 million at September 30, 2021 and December 31, 2020, respectively, are recorded in Accrued expenses and other in the Condensed Consolidated Balance Sheets. For over time arrangements, contract assets primarily relate to revenue recognized in advance of billings to customers under long-term contracts accounted for under percentage of completion. These amounts, which totaled $50.0 million and $56.9 million at September 30, 2021 and December 31, 2020, respectively, are recorded in Prepaid and other current assets in the Condensed Consolidated Balance Sheets. |
Segments
Segments | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segments | Segments Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. 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 corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs; Other components of pension income and other postretirement benefits expense, net; and interest expense, net. Results by business segment were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In millions) Net sales: Supply Technologies $ 154.0 $ 132.0 $ 466.7 $ 367.2 Assembly Components 120.2 126.9 355.7 310.0 Engineered Products 84.3 81.3 245.7 257.6 $ 358.5 $ 340.2 $ 1,068.1 $ 934.8 Segment operating income (loss): Supply Technologies $ 10.7 $ 10.6 $ 33.2 $ 20.1 Assembly Components (8.9) 6.7 (8.6) (1.6) Engineered Products 0.6 1.3 (1.3) 4.3 Total segment operating income 2.4 18.6 23.3 22.8 Corporate costs (7.2) (7.5) (18.9) (19.2) Operating (loss) income (4.8) 11.1 4.4 3.6 Other components of pension income and other postretirement benefits expense, net 2.4 1.9 7.3 5.5 Interest expense, net (7.6) (7.4) (22.4) (22.9) (Loss) income before income taxes $ (10.0) $ 5.6 $ (10.7) $ (13.8) |
Plant Closure and Consolidation
Plant Closure and Consolidation | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Plant Closure and Consolidation | Plant Closure and Consolidation In the three and nine months ended September 30, 2021, the Company recorded expenses totaling $1.8 million and $3.1 million, respectively, in its Assembly Components segment. These charges were recorded in connection with actions taken to close and consolidate its extrusion operations in Tennessee and its fuel operations in Michigan, and to complete other cost-reduction actions in this segment. In the three and nine months ended September 30, 2021, the expenses included facility-related costs of $1.8 million and $2.8 million, respectively, which were included in cost of sales in the Condensed Consolidated Statements of Operations. For the nine months ended September 30, 2021, expenses also included severance costs of $0.3 million, which were included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The Company expects to incur additional moving and other facility-related costs related to these initiatives of approximately $1.9 million in the fourth quarter of 2021. In the three and nine months ended September 30, 2021, the Company recorded expenses related to plant closure and consolidation in its Engineered Products segment totaling $0.6 million and $1.9 million, respectively, which are included in selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. The Company expects to incur additional costs related to these initiatives of approximately $1.6 million in the fourth quarter of 2021. During the third quarter of 2021, in connection with the plant closure and consolidation activities in its Engineered Products segment, the Company committed to a plan to sell real estate at two operating locations. The Company determined that these assets met the criteria to be classified as held for sale during the third quarter and, therefore, the aggregate carrying value of approximately $4.9 million is included in assets held for sale and presented in Prepaid and other current assets in the Condensed Consolidated Balance Sheet at September 30, 2021. The Company believes that the fair value less costs to sell of these assets exceeds their respective carrying values. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisition | Acquisition On April 1, 2021, the Company acquired NYK Component Solutions Limited (“NYK”) for $5.4 million in cash, net of cash acquired, plus estimated contingent consideration of up to an additional $1.8 million. NYK, which is included in our Supply Technologies segment, is headquartered in Southampton, United Kingdom and is a leading distributor of circular connectors and accessories for use in aerospace, defense, and other industrial applications. NYK provides complementary products to our existing products in Supply Technologies. The allocation of the purchase price of NYK is subject to finalization of the Company's determination of the fair values of the assets acquired and the liabilities assumed as of the acquisition date, and could be materially different than the estimates presented below. The Company has not yet completed its analysis of the fair value of the intangible assets or the contingent consideration. The final allocation is expected to be completed in the fourth quarter of 2021, but no later than one year after the acquisition date. Below is the estimated purchase price allocation related to the acquisition of NYK; the total purchase price is net of cash acquired and includes estimated contingent consideration of $1.8 million. (In millions) Accounts receivable $ 1.0 Inventories 2.2 Accounts payable and accrued expenses (1.0) Property, plant and equipment 0.1 Other, net 0.1 Intangible assets 2.8 Goodwill 2.5 Deferred income tax liability (0.5) Total purchase price (including the estimated contingent consideration of $1.8 million) $ 7.2 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following: September 30, 2021 December 31, 2020 (In millions) Raw materials and supplies $ 120.0 $ 93.8 Work-in-process 50.1 44.0 Finished goods 216.3 173.1 Inventories, net $ 386.4 $ 310.9 |
Accrued Warranty Costs
Accrued Warranty Costs | 9 Months Ended |
Sep. 30, 2021 | |
Product Warranties Disclosures [Abstract] | |
Accrued Warranty Costs | Accrued Warranty CostsThe Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents changes in the Company’s product warranty liability for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In millions) Beginning balance $ 7.6 $ 6.5 $ 6.4 $ 6.4 Claims paid (0.4) (0.5) (1.6) (1.1) Warranty expense 0.1 0.3 2.5 1.0 Ending balance $ 7.3 $ 6.3 $ 7.3 $ 6.3 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic. Significant impacts of the CARES Act include the ability to carry back a net operating loss for five years and an increase of the Internal Revenue Code Section 163(j) interest expense disallowance limitations from 30% to 50% of adjusted taxable income, which will allow the Company to deduct additional interest expense for the 2019 and 2020 tax years. The Company is assessing the potential impact of global relief packages and the CARES Act. Income tax benefit for the three months ended September 30, 2021 was $2.8 million, representing an effective rate of 28% compared to income tax expense of $0.3 million, or 5%, for the three months ended September 30, 2020. The rate in the 2021 period is higher than the U.S. statutory rate of 21% due primarily to the additional tax benefit recorded as result of stock compensation that vested and state and local taxes during the quarter. The rate in the 2020 period is lower than the U.S. statutory rate of 21% due primarily to a U.S. net operating loss carryback to a prior year under the CARES Act, a tax benefit from the favorable impact of final Global Intangible Low-Taxed Income (“GILTI”) regulations and a decrease in our Transition Tax liability. Income tax benefit for the nine months ended September 30, 2021 was $3.7 million, representing an effective rate of 35%, |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Debt consists of the following: Carrying Value at Maturity Date Interest Rate at September 30, 2021 December 31, 2020 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility November 26, 2024 1.30 % 221.8 143.7 Finance Leases Various Various 15.2 18.7 Other Various Various 18.2 22.3 Total debt 605.2 534.7 Less current portion of long-term debt and short-term debt (8.9) (11.6) Less unamortized debt issuance costs (4.2) (5.3) Total long-term debt, net $ 592.1 $ 517.8 In 2018, the Company entered into Amendment No. 1 to Seventh Amended and Restated Credit Agreement (the “Credit Agreement”) with a group of banks to increase the availability under the revolving credit facility from $350.0 million to $375.0 million, the Canadian revolving subcommitment from $35.0 million to $40.0 million and the European revolving subcommitment from $25.0 million to $30.0 million. Furthermore, the Company has the option, pursuant to the Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million. In 2019, the Company entered into Amendment No. 4 to the Credit Agreement, extending the maturity of the Credit Agreement to November 26, 2024. We had outstanding bank guarantees and letters of credit under the Credit Agreement of approximately $35.3 million at September 30, 2021 and $34.9 million at December 31, 2020. In 2017, the Company completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes are unsecured senior obligations of the Company and are guaranteed on an unsecured senior basis by the 100% owned material domestic subsidiaries of the Company. In 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 $28.9 million as of September 30, 2021, as well as a revolving credit facility for up to $11.6 million to fund working capital and general corporate needs. No amounts were outstanding under the loan agreement or the revolving credit facility as of September 30, 2021. In 2015, the Company entered into a finance lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for finance leases. Finance lease obligations of $15.2 million were borrowed under the Lease Agreement to acquire machinery and equipment as of September 30, 2021. In 2015, the Company, through its Southwest Steel Processing LLC subsidiary, entered into a financing agreement with the Arkansas Development Finance Authority, which matures in September 2025. The financing agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The Company had $6.1 million of borrowings outstanding under this agreement as of September 30, 2021, which is included in Other above. The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices. September 30, 2021 December 31, 2020 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 351.3 $ 361.8 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation A summary of Holdings' restricted share activity for the nine months ended September 30, 2021 is as follows: 2021 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 741,006 $ 22.02 50,000 $ 32.55 Granted (a) 183,401 33.64 — — Vested (234,081) 22.47 — — Canceled or expired (7,917) 21.71 — — Outstanding - end of period 682,409 $ 24.99 50,000 $ 32.55 (a) - Included in this amount are 4,905 restricted share units. Stock-based compensation is included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. Total stock-based compensation expense for the three months ended September 30, 2021 and 2020 was $1.7 million and $1.6 million, respectively. Total stock-based compensation expense for the nine months ended September 30, 2021 and 2020 was $4.7 million and $4.4 million, respectively. As of September 30, 2021, there was $11.4 million of unrecognized compensation cost related to non-vested stock-based compensation, which cost is expected to be recognized over a weighted-average period of 2.0 years. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. Our subsidiaries are involved in a number of contractual and warranty-related disputes. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. In addition to the routine lawsuits and asserted claims noted above, we are also a co-defendant in approximately 124 cases asserting claims on behalf of approximately 228 plaintiffs alleging personal injury as a result of exposure to asbestos. In every asbestos case in which we are named as a party, the complaints are filed against multiple named defendants. Historically, we have been dismissed from asbestos cases. We intend to vigorously defend these cases and believe we will continue to be successful in being dismissed from such cases. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The components of net periodic benefit (income) expense costs recognized for the three and nine months ended September 30, 2021 and 2020 were as follows: Pension Benefits Postretirement Benefits Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 2021 2020 2021 2020 (In millions) Service costs $ 1.0 $ 1.0 $ 3.2 $ 3.2 $ — $ — $ — $ — Interest costs 0.3 0.5 1.0 1.6 — — 0.1 0.1 Expected return on plan assets (3.0) (2.9) (9.2) (8.8) — — — — Recognized net actuarial loss 0.2 0.4 0.6 1.4 0.1 0.1 0.3 0.2 Net periodic benefit (income) expense $ (1.5) $ (1.0) $ (4.4) $ (2.6) $ 0.1 $ 0.1 $ 0.4 $ 0.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The components of and changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Beginning balance $ (11.0) $ (9.4) $ (20.4) $ (36.1) $ (13.7) $ (49.8) Currency translation (a) (5.5) — (5.5) 12.6 — 12.6 Pension and OPEB activity, net of tax — 0.2 0.2 — 0.3 0.3 Ending balance $ (16.5) $ (9.2) $ (25.7) $ (23.5) $ (13.4) $ (36.9) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Beginning balance $ (8.3) $ (9.8) $ (18.1) $ (22.4) $ (14.6) $ (37.0) Currency translation (a) (8.2) — (8.2) (1.1) — (1.1) Pension and OPEB activity, net of tax — 0.6 0.6 — 1.2 1.2 Ending balance $ (16.5) $ (9.2) $ (25.7) $ (23.5) $ (13.4) $ (36.9) (a) No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements include the accounts of Park-Ohio Industries, Inc. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. Park-Ohio Industries, Inc. is a wholly-owned subsidiary of Park-Ohio Holdings Corp. (“Holdings”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three- and nine- month periods ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Recent Accounting Pronouncements Not Yet Adopted | Recent Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate. The guidance is effective upon issuance and may be adopted on any date on or after March 12, 2020. However, the relief is temporary and generally cannot be applied to contract modifications that occur after December 31, 2022 or hedging relationships entered into or evaluated after that date. The Company is currently evaluating the expected impact of this standard. |
Segments | Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. 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 corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs; Other components of pension income and other postretirement benefits expense, net; and interest expense, net. |
Accrued Warranty Costs | The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. |
Income Taxes | The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic. Significant impacts of the CARES Act include the ability to carry back a net operating loss for five years and an increase of the Internal Revenue Code Section 163(j) interest expense disallowance limitations from 30% to 50% of adjusted taxable income, which will allow the Company to deduct additional interest expense for the 2019 and 2020 tax years. The Company is assessing the potential impact of global relief packages and the CARES Act. |
Commitments and Contingencies | The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | We disaggregate our revenue by product line and geographic region of our customer, as we believe these metrics best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In millions) PRODUCT LINE Supply Technologies $ 134.5 $ 112.1 $ 406.2 $ 320.1 Engineered specialty fasteners and other products 19.5 19.9 60.5 47.1 Supply Technologies Segment 154.0 132.0 466.7 367.2 Fuel, rubber and plastic products 80.8 86.8 238.2 211.3 Aluminum products 39.4 40.1 117.5 98.7 Assembly Components Segment 120.2 126.9 355.7 310.0 Industrial equipment 62.0 56.2 179.9 175.7 Forged and machined products 22.3 25.1 65.8 81.9 Engineered Products Segment 84.3 81.3 245.7 257.6 Total revenues $ 358.5 $ 340.2 $ 1,068.1 $ 934.8 |
Schedule of revenue by geographic areas | Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended September 30, 2021 GEOGRAPHIC REGION United States $ 92.5 $ 77.9 $ 46.4 $ 216.8 Europe 27.9 3.4 14.8 46.1 Asia 14.7 6.6 12.0 33.3 Mexico 15.6 17.8 5.0 38.4 Canada 2.9 14.1 3.5 20.5 Other 0.4 0.4 2.6 3.4 Total $ 154.0 $ 120.2 $ 84.3 $ 358.5 Three Months Ended September 30, 2020 GEOGRAPHIC REGION United States $ 77.0 $ 86.1 $ 43.0 $ 206.1 Europe 21.6 3.8 16.1 41.5 Asia 10.3 9.1 12.6 32.0 Mexico 20.5 10.0 2.0 32.5 Canada 2.5 17.4 6.0 25.9 Other 0.1 0.5 1.6 2.2 Total $ 132.0 $ 126.9 $ 81.3 $ 340.2 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Nine Months Ended September 30, 2021 GEOGRAPHIC REGION United States $ 281.4 $ 241.8 $ 126.7 $ 649.9 Europe 84.7 10.7 46.3 141.7 Asia 42.4 19.0 38.5 99.9 Mexico 48.2 38.6 13.4 100.2 Canada 8.6 44.3 12.5 65.4 Other 1.4 1.3 8.3 11.0 Total $ 466.7 $ 355.7 $ 245.7 $ 1,068.1 Nine Months Ended September 30, 2020 GEOGRAPHIC REGION United States $ 228.3 $ 212.9 $ 141.7 $ 582.9 Europe 59.3 10.2 42.4 111.9 Asia 31.5 19.8 46.1 97.4 Mexico 40.0 23.8 5.5 69.3 Canada 7.0 42.3 15.1 64.4 Other 1.1 1.0 6.8 8.9 Total $ 367.2 $ 310.0 $ 257.6 $ 934.8 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of results by business segment | Results by business segment were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In millions) Net sales: Supply Technologies $ 154.0 $ 132.0 $ 466.7 $ 367.2 Assembly Components 120.2 126.9 355.7 310.0 Engineered Products 84.3 81.3 245.7 257.6 $ 358.5 $ 340.2 $ 1,068.1 $ 934.8 Segment operating income (loss): Supply Technologies $ 10.7 $ 10.6 $ 33.2 $ 20.1 Assembly Components (8.9) 6.7 (8.6) (1.6) Engineered Products 0.6 1.3 (1.3) 4.3 Total segment operating income 2.4 18.6 23.3 22.8 Corporate costs (7.2) (7.5) (18.9) (19.2) Operating (loss) income (4.8) 11.1 4.4 3.6 Other components of pension income and other postretirement benefits expense, net 2.4 1.9 7.3 5.5 Interest expense, net (7.6) (7.4) (22.4) (22.9) (Loss) income before income taxes $ (10.0) $ 5.6 $ (10.7) $ (13.8) |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of purchase price allocation | Below is the estimated purchase price allocation related to the acquisition of NYK; the total purchase price is net of cash acquired and includes estimated contingent consideration of $1.8 million. (In millions) Accounts receivable $ 1.0 Inventories 2.2 Accounts payable and accrued expenses (1.0) Property, plant and equipment 0.1 Other, net 0.1 Intangible assets 2.8 Goodwill 2.5 Deferred income tax liability (0.5) Total purchase price (including the estimated contingent consideration of $1.8 million) $ 7.2 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories, net consist of the following: September 30, 2021 December 31, 2020 (In millions) Raw materials and supplies $ 120.0 $ 93.8 Work-in-process 50.1 44.0 Finished goods 216.3 173.1 Inventories, net $ 386.4 $ 310.9 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of changes in product warranty liability | The following table presents changes in the Company’s product warranty liability for the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (In millions) Beginning balance $ 7.6 $ 6.5 $ 6.4 $ 6.4 Claims paid (0.4) (0.5) (1.6) (1.1) Warranty expense 0.1 0.3 2.5 1.0 Ending balance $ 7.3 $ 6.3 $ 7.3 $ 6.3 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Debt consists of the following: Carrying Value at Maturity Date Interest Rate at September 30, 2021 December 31, 2020 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility November 26, 2024 1.30 % 221.8 143.7 Finance Leases Various Various 15.2 18.7 Other Various Various 18.2 22.3 Total debt 605.2 534.7 Less current portion of long-term debt and short-term debt (8.9) (11.6) Less unamortized debt issuance costs (4.2) (5.3) Total long-term debt, net $ 592.1 $ 517.8 |
Schedule of fair value of debt | The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices. September 30, 2021 December 31, 2020 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 351.3 $ 361.8 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted share and performance share activity | A summary of Holdings' restricted share activity for the nine months ended September 30, 2021 is as follows: 2021 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 741,006 $ 22.02 50,000 $ 32.55 Granted (a) 183,401 33.64 — — Vested (234,081) 22.47 — — Canceled or expired (7,917) 21.71 — — Outstanding - end of period 682,409 $ 24.99 50,000 $ 32.55 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit (income) expense costs | The components of net periodic benefit (income) expense costs recognized for the three and nine months ended September 30, 2021 and 2020 were as follows: Pension Benefits Postretirement Benefits Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 2021 2020 2021 2020 (In millions) Service costs $ 1.0 $ 1.0 $ 3.2 $ 3.2 $ — $ — $ — $ — Interest costs 0.3 0.5 1.0 1.6 — — 0.1 0.1 Expected return on plan assets (3.0) (2.9) (9.2) (8.8) — — — — Recognized net actuarial loss 0.2 0.4 0.6 1.4 0.1 0.1 0.3 0.2 Net periodic benefit (income) expense $ (1.5) $ (1.0) $ (4.4) $ (2.6) $ 0.1 $ 0.1 $ 0.4 $ 0.3 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Changes in accumulated comprehensive loss | The components of and changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Beginning balance $ (11.0) $ (9.4) $ (20.4) $ (36.1) $ (13.7) $ (49.8) Currency translation (a) (5.5) — (5.5) 12.6 — 12.6 Pension and OPEB activity, net of tax — 0.2 0.2 — 0.3 0.3 Ending balance $ (16.5) $ (9.2) $ (25.7) $ (23.5) $ (13.4) $ (36.9) Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020 Beginning balance $ (8.3) $ (9.8) $ (18.1) $ (22.4) $ (14.6) $ (37.0) Currency translation (a) (8.2) — (8.2) (1.1) — (1.1) Pension and OPEB activity, net of tax — 0.6 0.6 — 1.2 1.2 Ending balance $ (16.5) $ (9.2) $ (25.7) $ (23.5) $ (13.4) $ (36.9) (a) No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested. |
Revenue (Schedule of Disaggrega
Revenue (Schedule of Disaggregation of Revenue by Product Line) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 358.5 | $ 340.2 | $ 1,068.1 | $ 934.8 |
Supply Technologies Segment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 154 | 132 | 466.7 | 367.2 |
Supply Technologies Segment | Supply Technologies | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 134.5 | 112.1 | 406.2 | 320.1 |
Supply Technologies Segment | Engineered specialty fasteners and other products | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 19.5 | 19.9 | 60.5 | 47.1 |
Assembly Components Segment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 120.2 | 126.9 | 355.7 | 310 |
Assembly Components Segment | Fuel, rubber and plastic products | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 80.8 | 86.8 | 238.2 | 211.3 |
Assembly Components Segment | Aluminum products | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 39.4 | 40.1 | 117.5 | 98.7 |
Engineered Products Segment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 84.3 | 81.3 | 245.7 | 257.6 |
Engineered Products Segment | Industrial equipment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 62 | 56.2 | 179.9 | 175.7 |
Engineered Products Segment | Forged and machined products | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 22.3 | $ 25.1 | $ 65.8 | $ 81.9 |
Revenue (Schedule of Disaggre_2
Revenue (Schedule of Disaggregation of Revenue by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 358.5 | $ 340.2 | $ 1,068.1 | $ 934.8 |
United States | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 216.8 | 206.1 | 649.9 | 582.9 |
Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 46.1 | 41.5 | 141.7 | 111.9 |
Asia | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 33.3 | 32 | 99.9 | 97.4 |
Mexico | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 38.4 | 32.5 | 100.2 | 69.3 |
Canada | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 20.5 | 25.9 | 65.4 | 64.4 |
Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 3.4 | 2.2 | 11 | 8.9 |
Supply Technologies Segment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 154 | 132 | 466.7 | 367.2 |
Supply Technologies Segment | United States | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 92.5 | 77 | 281.4 | 228.3 |
Supply Technologies Segment | Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 27.9 | 21.6 | 84.7 | 59.3 |
Supply Technologies Segment | Asia | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 14.7 | 10.3 | 42.4 | 31.5 |
Supply Technologies Segment | Mexico | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 15.6 | 20.5 | 48.2 | 40 |
Supply Technologies Segment | Canada | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 2.9 | 2.5 | 8.6 | 7 |
Supply Technologies Segment | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 0.4 | 0.1 | 1.4 | 1.1 |
Assembly Components Segment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 120.2 | 126.9 | 355.7 | 310 |
Assembly Components Segment | United States | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 77.9 | 86.1 | 241.8 | 212.9 |
Assembly Components Segment | Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 3.4 | 3.8 | 10.7 | 10.2 |
Assembly Components Segment | Asia | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 6.6 | 9.1 | 19 | 19.8 |
Assembly Components Segment | Mexico | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 17.8 | 10 | 38.6 | 23.8 |
Assembly Components Segment | Canada | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 14.1 | 17.4 | 44.3 | 42.3 |
Assembly Components Segment | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 0.4 | 0.5 | 1.3 | 1 |
Engineered Products Segment | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 84.3 | 81.3 | 245.7 | 257.6 |
Engineered Products Segment | United States | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 46.4 | 43 | 126.7 | 141.7 |
Engineered Products Segment | Europe | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 14.8 | 16.1 | 46.3 | 42.4 |
Engineered Products Segment | Asia | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 12 | 12.6 | 38.5 | 46.1 |
Engineered Products Segment | Mexico | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 5 | 2 | 13.4 | 5.5 |
Engineered Products Segment | Canada | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | 3.5 | 6 | 12.5 | 15.1 |
Engineered Products Segment | Other | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Total revenues | $ 2.6 | $ 1.6 | $ 8.3 | $ 6.8 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) - Transferred over time - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Contract liabilities | $ 38.6 | $ 37.4 |
Contract assets | $ 50 | $ 56.9 |
Segments (Schedule of Segment I
Segments (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net sales: | ||||
Net sales | $ 358.5 | $ 340.2 | $ 1,068.1 | $ 934.8 |
Segment operating income (loss): | ||||
Operating (loss) income | (4.8) | 11.1 | 4.4 | 3.6 |
Other components of pension income and other postretirement benefits expense, net | 2.4 | 1.9 | 7.3 | 5.5 |
Interest expense, net | (7.6) | (7.4) | (22.4) | (22.9) |
(Loss) income before income taxes | (10) | 5.6 | (10.7) | (13.8) |
Operating Segments | ||||
Net sales: | ||||
Net sales | 358.5 | 340.2 | 1,068.1 | 934.8 |
Segment operating income (loss): | ||||
Operating (loss) income | 2.4 | 18.6 | 23.3 | 22.8 |
Segment Reconciling Items | ||||
Segment operating income (loss): | ||||
Corporate costs | (7.2) | (7.5) | (18.9) | (19.2) |
Supply Technologies | ||||
Net sales: | ||||
Net sales | 154 | 132 | 466.7 | 367.2 |
Supply Technologies | Operating Segments | ||||
Net sales: | ||||
Net sales | 154 | 132 | 466.7 | 367.2 |
Segment operating income (loss): | ||||
Operating (loss) income | 10.7 | 10.6 | 33.2 | 20.1 |
Assembly Components | ||||
Net sales: | ||||
Net sales | 120.2 | 126.9 | 355.7 | 310 |
Assembly Components | Operating Segments | ||||
Net sales: | ||||
Net sales | 120.2 | 126.9 | 355.7 | 310 |
Segment operating income (loss): | ||||
Operating (loss) income | (8.9) | 6.7 | (8.6) | (1.6) |
Engineered Products | ||||
Net sales: | ||||
Net sales | 84.3 | 81.3 | 245.7 | 257.6 |
Engineered Products | Operating Segments | ||||
Net sales: | ||||
Net sales | 84.3 | 81.3 | 245.7 | 257.6 |
Segment operating income (loss): | ||||
Operating (loss) income | $ 0.6 | $ 1.3 | $ (1.3) | $ 4.3 |
Plant Closure and Consolidati_2
Plant Closure and Consolidation (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($)operatingLocation | Sep. 30, 2021USD ($)operatingLocation | |
Assembly Components | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1.8 | $ 3.1 |
Expected additional cost in the remainder of current year | 1.9 | 1.9 |
Assembly Components | Severance and related employee costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.8 | 0.3 |
Assembly Components | Other facility costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2.8 | |
Engineered Products | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected additional cost in the remainder of current year | $ 1.6 | $ 1.6 |
Assets held for sale, number of operating locations | operatingLocation | 2 | 2 |
Engineered Products | Prepaid Expenses and Other Current Assets | ||
Restructuring Cost and Reserve [Line Items] | ||
Assets held for sale | $ 4.9 | $ 4.9 |
Engineered Products | Selling, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.6 | $ 1.9 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) - NYK Component Solutions Limited $ in Millions | Apr. 01, 2021USD ($) |
Business Acquisition [Line Items] | |
Purchase price | $ 5.4 |
Contingent consideration (up to) | $ 1.8 |
Acquisition (Schedule of alloca
Acquisition (Schedule of allocation of purchase price) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Apr. 01, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 112 | $ 110.9 | |
NYK Component Solutions Limited | |||
Business Acquisition [Line Items] | |||
Accounts receivable | $ 1 | ||
Inventories | 2.2 | ||
Accounts payable and accrued expenses | (1) | ||
Property, plant and equipment | 0.1 | ||
Other, net | 0.1 | ||
Intangible assets | 2.8 | ||
Goodwill | 2.5 | ||
Deferred income tax liability | (0.5) | ||
Total purchase price (including the estimated contingent consideration of $1.8 million) | 7.2 | ||
Contingent consideration (up to) | $ 1.8 |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Components of inventory | ||
Raw materials and supplies | $ 120 | $ 93.8 |
Work-in-process | 50.1 | 44 |
Finished goods | 216.3 | 173.1 |
Inventories, net | $ 386.4 | $ 310.9 |
Accrued Warranty Costs (Details
Accrued Warranty Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Changes in product warranty liability | ||||
Beginning balance | $ 7.6 | $ 6.5 | $ 6.4 | $ 6.4 |
Claims paid | (0.4) | (0.5) | (1.6) | (1.1) |
Warranty expense | 0.1 | 0.3 | 2.5 | 1 |
Ending balance | $ 7.3 | $ 6.3 | $ 7.3 | $ 6.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit (expense) | $ 2.8 | $ (0.3) | $ 3.7 | $ 3.8 |
Effective tax rate | 28.00% | 5.00% | 35.00% | 28.00% |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Finance Leases | $ 15.2 | $ 18.7 |
Other | 18.2 | 22.3 |
Total debt | 605.2 | 534.7 |
Less current portion of long-term debt and short-term debt | (8.9) | (11.6) |
Less unamortized debt issuance costs | (4.2) | (5.3) |
Total long-term debt, net | $ 592.1 | 517.8 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 1.30% | |
Debt | $ 221.8 | 143.7 |
Senior Notes | Senior Notes 6.625% Due 2027 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.625% | |
Debt | $ 350 | $ 350 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||||
Percentage ownership | 100.00% | ||||
Finance lease agreement, amount | $ 50,000,000 | ||||
Finance Leases | $ 15,200,000 | $ 18,700,000 | |||
Southwest Steel Processing LLC | Arkansas Development Finance Authority | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 11,000,000 | ||||
Borrowings outstanding | 6,100,000 | ||||
Senior Notes due 2027 | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate principal amount | $ 350,000,000 | ||||
Stated interest rate | 6.625% | ||||
Financing Agreement | Line of Credit | Banco Bilbao Vizcaya Argentaria, S.A. | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 28,900,000 | ||||
Borrowings outstanding | $ 0 | ||||
Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 1.30% | ||||
Revolving credit facility | Seventh Amendment Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 350,000,000 | ||||
Revolving credit facility | Amendment No. 1 to Seventh Amended and Restated Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 375,000,000 | ||||
Increase in additional borrowing capacity | 100,000,000 | ||||
Bank guarantees and letters of credit outstanding | $ 35,300,000 | $ 34,900,000 | |||
Revolving credit facility | Financing Agreement | Line of Credit | Banco Bilbao Vizcaya Argentaria, S.A. | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 11,600,000 | ||||
Revolving Credit Facility Canadian Sub-Limit | Seventh Amendment Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 35,000,000 | ||||
Revolving Credit Facility Canadian Sub-Limit | Amendment No. 1 to Seventh Amended and Restated Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 40,000,000 | ||||
Revolving Credit Facility European Sub-Limit | Seventh Amendment Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 25,000,000 | ||||
Revolving Credit Facility European Sub-Limit | Amendment No. 1 to Seventh Amended and Restated Credit Agreement | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 30,000,000 |
Financing Arrangements (Fair Va
Financing Arrangements (Fair Value of Debt) (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 350 | $ 350 |
Fair value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 351.3 | $ 361.8 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Restricted Share Activity) (Details) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Time-Based | |
Number of Shares | |
Outstanding - beginning of years (in shares) | 741,006 |
Granted (in shares) | 183,401 |
Vested (in shares) | (234,081) |
Canceled or expired (in shares) | (7,917) |
Outstanding - end of periods (in shares) | 682,409 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 22.02 |
Granted (in dollars per share) | $ / shares | 33.64 |
Vested (in dollars per share) | $ / shares | 22.47 |
Canceled or expired (in dollars per share) | $ / shares | 21.71 |
Outstanding - end of year (in dollars per share) | $ / shares | $ 24.99 |
Performance-Based | |
Number of Shares | |
Outstanding - beginning of years (in shares) | 50,000 |
Granted (in shares) | 0 |
Vested (in shares) | 0 |
Canceled or expired (in shares) | 0 |
Outstanding - end of periods (in shares) | 50,000 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 32.55 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Canceled or expired (in dollars per share) | $ / shares | 0 |
Outstanding - end of year (in dollars per share) | $ / shares | $ 32.55 |
Restricted share units | |
Number of Shares | |
Granted (in shares) | 4,905 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | ||||
Stock-based compensation expense | $ 1.7 | $ 1.6 | $ 4.7 | $ 4.4 |
Unrecognized compensation cost related to non-vested stock-based compensation | $ 11.4 | $ 11.4 | ||
Weighted average period (in years) | 2 years |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 9 Months Ended |
Sep. 30, 2021claimplaintiff | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending cases | claim | 124 |
Number of plaintiffs | plaintiff | 228 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Components of net periodic benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Benefits | ||||
Components of net periodic benefit cost | ||||
Service costs | $ 1 | $ 1 | $ 3.2 | $ 3.2 |
Interest costs | 0.3 | 0.5 | 1 | 1.6 |
Expected return on plan assets | (3) | (2.9) | (9.2) | (8.8) |
Recognized net actuarial loss | 0.2 | 0.4 | 0.6 | 1.4 |
Net periodic benefit (income) expense | (1.5) | (1) | (4.4) | (2.6) |
Postretirement Benefits | ||||
Components of net periodic benefit cost | ||||
Service costs | 0 | 0 | 0 | 0 |
Interest costs | 0 | 0 | 0.1 | 0.1 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 0.1 | 0.1 | 0.3 | 0.2 |
Net periodic benefit (income) expense | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Components of accumulated comprehensive loss) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 363,900,000 | $ 322,900,000 | $ 367,000,000 | $ 357,800,000 |
Currency translation | (5,500,000) | 12,600,000 | (8,200,000) | (1,100,000) |
Pension and OPEB activity, net of tax | 200,000 | 300,000 | 600,000 | 1,200,000 |
Ending balance | 350,600,000 | 342,800,000 | 350,600,000 | 342,800,000 |
Tax on currency translation as foreign earnings permanently reinvested | 0 | 0 | 0 | 0 |
Cumulative Translation Adjustment | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (11,000,000) | (36,100,000) | (8,300,000) | (22,400,000) |
Ending balance | (16,500,000) | (23,500,000) | (16,500,000) | (23,500,000) |
Pension and Postretirement Benefits | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (9,400,000) | (13,700,000) | (9,800,000) | (14,600,000) |
Ending balance | (9,200,000) | (13,400,000) | (9,200,000) | (13,400,000) |
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (20,400,000) | (49,800,000) | (18,100,000) | (37,000,000) |
Ending balance | $ (25,700,000) | $ (36,900,000) | $ (25,700,000) | $ (36,900,000) |