Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 18, 2014 | Jun. 30, 2013 | |
Document Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'NPO | ' | ' |
Entity Registrant Name | 'ENPRO INDUSTRIES, INC | ' | ' |
Entity Central Index Key | '0001164863 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 21,213,991 | ' |
Entity Public Float | ' | ' | $1,031,277,367 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $1,144.20 | $1,184.20 | $1,105.50 |
Cost of sales | 762.9 | 784.1 | 726.5 |
Gross profit | 381.3 | 400.1 | 379 |
Operating expenses: | ' | ' | ' |
Selling, general and administrative | 285.8 | 286.1 | 275 |
Other | 9.1 | 6.5 | 2.3 |
Total operating expenses | 294.9 | 292.6 | 277.3 |
Operating income | 86.4 | 107.5 | 101.7 |
Interest expense | -45.1 | -43.2 | -40.8 |
Interest income | 0.8 | 0.4 | 1.2 |
Other income (expense) | -6.3 | -1.2 | 2.9 |
Income before income taxes | 35.8 | 63.5 | 65 |
Income tax expense | -8.4 | -22.5 | -20.8 |
Net income | $27.40 | $41 | $44.20 |
Basic earnings per share: | ' | ' | ' |
Basic earnings per share (in dollars per share) | $1.31 | $1.99 | $2.15 |
Diluted earnings per share: | ' | ' | ' |
Diluted earnings per share (in dollars per share) | $1.17 | $1.90 | $2.06 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $27.40 | $41 | $44.20 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustments | 1 | 5.3 | -7.9 |
Pension and post-retirement benefits adjustment (excluding amortization) | 47.6 | -10.8 | -46.5 |
Amortization of pension and post-retirement benefits included in net income | 9.7 | 10.2 | 5.1 |
Change in fair value of cash flow hedges | 0 | 0 | -0.4 |
Realized loss (income) from settled cash flow hedges included in net income, net | 1 | -0.2 | 1.1 |
Other comprehensive income (loss), before tax | 59.3 | 4.5 | -48.6 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | -21.9 | 0.2 | 15.3 |
Other comprehensive income (loss), net of tax | 37.4 | 4.7 | -33.3 |
Comprehensive income | $64.80 | $45.70 | $10.90 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING ACTIVITIES | ' | ' | ' |
Net income | $27.40 | $41 | $44.20 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 29.6 | 28.8 | 25.3 |
Amortization | 27 | 26.7 | 23.1 |
Accretion of debt discount | 7.6 | 6.9 | 6.3 |
Deferred income taxes | 1.7 | 5.9 | 4.3 |
Stock-based compensation | 6 | 7.1 | 5.4 |
Excess tax benefits from stock-based compensation | -3.6 | -1.5 | -1 |
Change in assets and liabilities, net of effects of acquisitions of businesses: | ' | ' | ' |
Accounts receivable | -4.7 | 15.8 | -31.1 |
Inventories | -17.2 | -12.5 | -12 |
Accounts payable | 2.4 | -4.7 | 12 |
Other current assets and liabilities | 8.2 | 2.5 | 5.8 |
Other non-current assets and liabilities | -14.5 | 2.2 | -0.9 |
Net cash provided by operating activities | 69.9 | 118.2 | 81.4 |
INVESTING ACTIVITIES | ' | ' | ' |
Purchases of property, plant and equipment | -30.7 | -35.6 | -31.5 |
Payments for capitalized internal-use software | -9.2 | -5.3 | -2.8 |
Acquisitions, net of cash acquired | -2 | -85.3 | -228.2 |
Other | 0.4 | 0.6 | 1.8 |
Net cash used in investing activities | -41.5 | -125.6 | -260.7 |
FINANCING ACTIVITIES | ' | ' | ' |
Net repayments of short-term borrowings | 12.8 | -0.5 | -13.1 |
Proceeds from debt | 187.7 | 246.7 | 53.9 |
Repayments of debt | -215.4 | -218.4 | -50.1 |
Other | -4.6 | 1.7 | -0.1 |
Net cash provided by (used in) financing activities | -19.5 | 29.5 | -9.4 |
Effect of exchange rate changes on cash and cash equivalents | 1.6 | 1.1 | 0.2 |
Net increase (decrease) in cash and cash equivalents | 10.5 | 23.2 | -188.5 |
Cash and cash equivalents at beginning of year | 53.9 | 30.7 | 219.2 |
Cash and cash equivalents at end of year | 64.4 | 53.9 | 30.7 |
Cash paid during the year for: | ' | ' | ' |
Interest | 25.1 | 24.3 | 22.9 |
Income taxes | $19.60 | $19.70 | $35.10 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $64.40 | $53.90 |
Accounts receivable, less allowance for doubtful accounts of $6.0 in 2013 and $5.7 in 2012 | 193.1 | 187.2 |
Inventories | 149.1 | 130.8 |
Prepaid expenses and other current assets | 41 | 22.3 |
Total current assets | 447.6 | 394.2 |
Property, plant and equipment | 187.5 | 185.5 |
Goodwill | 220.2 | 220.4 |
Other intangible assets | 200.1 | 222.5 |
Investment in GST | 236.9 | 236.9 |
Other assets | 100.4 | 111.4 |
Total assets | 1,392.70 | 1,370.90 |
Current liabilities | ' | ' |
Short-term borrowings from GST | 22 | 10.1 |
Notes payable to GST | 11.2 | 10.7 |
Current maturities of long-term debt | 156.6 | 1 |
Accounts payable | 86.8 | 83.9 |
Accrued expenses | 140.9 | 121.8 |
Total current liabilities | 417.5 | 227.5 |
Long-term debt | 8.5 | 184.3 |
Notes payable to GST | 248.1 | 237.4 |
Pension liability | 47.4 | 112.7 |
Other liabilities | 57.8 | 61.9 |
Total liabilities | 779.3 | 823.8 |
Commitments and contingencies | ' | ' |
Temporary Equity | 15.9 | 0 |
Shareholders’ equity | ' | ' |
Common stock – $.01 par value; 100,000,000 shares authorized; issued 21,153,389 shares at December 31, 2013 and 20,904,857 shares at December 31, 2012 | 0.2 | 0.2 |
Additional paid-in capital | 410.9 | 425.4 |
Retained earnings | 173.3 | 145.9 |
Accumulated other comprehensive loss | 14.4 | -23 |
Common stock held in treasury, at cost – 202,269 shares at December 31, 2013 and 204,382 shares at December 31, 2012 | -1.3 | -1.4 |
Total shareholders’ equity | 597.5 | 547.1 |
Total liabilities and equity | $1,392.70 | $1,370.90 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts and notes receivable, allowance for doubtful accounts | $6 | $5.70 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares, issued | 21,153,389 | 20,904,857 |
Treasury stock, shares | 202,269 | 204,382 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Millions | ||||||
Balance at Dec. 31, 2010 | $476.40 | $0.20 | $411.30 | $60.70 | $5.60 | ($1.40) |
Balance, Shares at Dec. 31, 2010 | ' | 20.4 | ' | ' | ' | ' |
Net income | 44.2 | ' | ' | 44.2 | ' | ' |
Other comprehensive income (loss) | -33.3 | ' | ' | ' | -33.3 | ' |
Exercise of stock options and other incentive plan activity | 6.8 | ' | 6.8 | ' | ' | ' |
Exercise of stock options and other incentive plan activity, Shares | ' | 0.2 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 494.1 | 0.2 | 418.1 | 104.9 | -27.7 | -1.4 |
Balance, Shares at Dec. 31, 2011 | ' | 20.6 | ' | ' | ' | ' |
Net income | 41 | ' | ' | 41 | ' | ' |
Other comprehensive income (loss) | 4.7 | ' | ' | ' | 4.7 | ' |
Exercise of stock options and other incentive plan activity | 7.3 | ' | 7.3 | ' | ' | ' |
Exercise of stock options and other incentive plan activity, Shares | ' | 0.1 | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 547.1 | 0.2 | 425.4 | 145.9 | -23 | -1.4 |
Balance, Shares at Dec. 31, 2012 | ' | 20.7 | ' | ' | ' | ' |
Net income | 27.4 | ' | ' | 27.4 | ' | ' |
Other comprehensive income (loss) | 37.4 | ' | ' | ' | 37.4 | ' |
Reclassification to temporary equity | -15.9 | ' | -15.9 | ' | ' | ' |
Exercise of stock options and other incentive plan activity | 1.5 | ' | 1.4 | ' | ' | 0.1 |
Exercise of stock options and other incentive plan activity, Shares | ' | 0.3 | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $597.50 | $0.20 | $410.90 | $173.30 | $14.40 | ($1.30) |
Balance, Shares at Dec. 31, 2013 | ' | 21 | ' | ' | ' | ' |
Overview_Significant_Accountin
Overview, Significant Accounting Policies and Recently Issued Accounting Pronouncements | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Overview, Significant Accounting Policies and Recently Issued Accounting Pronouncements | ' | |
1 | Overview, Significant Accounting Policies and Recently Issued Accounting Guidance | |
Overview | ||
EnPro Industries, Inc. (“we,” “us,” “our,” “EnPro” or the “Company”) is a leader in the design, development, manufacture and marketing of proprietary engineered industrial products that primarily include: sealing products; self-lubricating, non-rolling bearing products; precision engineered components and lubrication systems for reciprocating compressors; and heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines, including parts and services for engines. | ||
Summary of Significant Accounting Policies | ||
Principles of Consolidation – The Consolidated Financial Statements reflect the accounts of the Company and our majority-owned and controlled subsidiaries. All intercompany accounts and transactions between our consolidated operations have been eliminated. | ||
Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||
Revenue Recognition – For the Sealing Products and Engineered Products segments, revenue is recognized at the time title and risk of product ownership is transferred or when services are rendered, and shipping costs billed to customers are recognized as revenue and expensed in cost of goods sold. | ||
We generally use the percentage-of-completion (“POC”) accounting method to account for our long-term contracts associated with the design, development, manufacture, or modification of complex engines under fixed price or cost plus contracts. During the third quarter of 2011, the Engine Products and Services segment began using POC for prospective engine contracts. We made this change because, as a result of enhancements to our financial management and reporting systems, we are able to reasonably estimate the revenue, costs, and progress towards completion of engine builds. If we are not able to meet those conditions for a particular engine contract, we recognize revenues using the completed-contract method. Additionally, engines that were in production at June 30, 2011 will continue to use the completed-contract method. | ||
Under POC, revenue is recognized based on the extent of progress towards completion of the long-term contract. We generally use the cost-to-cost measure for our long-term contracts unless we believe another method more clearly measures progress towards completion of the contract. Under the cost-to-cost measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the contract. Contract costs include labor, material and subcontracting costs, as well as an allocation of indirect costs. Revenues, including estimated fees or profits, are recorded as costs are incurred. | ||
Due to the nature of the work required to be performed on many of our contracts, the estimation of total revenue and cost at completion is complex and subject to many variables. Management must make assumptions and estimates regarding labor productivity, the complexity of the work to be performed, the availability of materials, the length of time to complete the contract (to estimate increases in wages and prices for materials and related support cost allocations), performance by our subcontractors and overhead cost rates, among other variables. Based on our analysis, any quarterly adjustments to net sales, cost of sales, and the related impact to operating income are recorded as necessary in the period they become known. These adjustments may result in an increase or a decrease in operating income. Changes in estimates of net sales, cost of sales, and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract's percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. When estimates of total costs to be incurred on a contract exceed total estimates of revenue to be earned, a provision for the entire loss on the contract is recorded in the period the loss is determined. | ||
Contracts accounted for under the POC method represented revenues and operating income of $64.3 million and $9.0 million, respectively, for the year ended December 31, 2013, $67.3 million and $13.1 million, respectively, for the year ended December 31, 2012, and $9.6 million and $1.5 million, respectively, for the year ended December 31, 2011. | ||
Foreign Currency Translation – The financial statements of those operations whose functional currency is a foreign currency are translated into U.S. dollars using the current rate method. Under this method, all assets and liabilities are translated into U.S. dollars using current exchange rates, and income statement activities are translated using average exchange rates. The foreign currency translation adjustment is included in accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses on foreign currency transactions are included in operating income. Foreign currency transaction losses totaled $(2.3) million, $(0.3) million, and $(0.9) million for 2013, 2012, and 2011, respectively. | ||
Research and Development Expense – Costs related to research and development activities are expensed as incurred. We perform research and development primarily under Company-funded programs for commercial products. Net research and development expenditures in 2013, 2012, and 2011 were $11.3 million, $10.8 million, and $14.6 million, respectively, and are included in selling, general and administrative expenses in the Consolidated Statements of Operations. | ||
Income Taxes – We use the asset and liability method of accounting for income taxes. Temporary differences arising between the tax basis of an asset or liability and its carrying amount on the Consolidated Balance Sheet are used to calculate future income tax assets or liabilities. This method also requires the recognition of deferred tax benefits, such as net operating loss carryforwards. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income (losses) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A tax benefit from an uncertain tax position is recognized only if it is more likely than not that the position will be sustained on its technical merits. If the recognition threshold for the tax position is met, only the portion of the tax benefit that is greater than 50 percent likely to be realized is recorded. | ||
Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, demand deposits and highly liquid investments with a maturity of three months or less at the time of purchase. | ||
Receivables – Accounts receivable are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. We establish an allowance for doubtful accounts receivable based on historical experience and any specific customer collection issues we have identified. Doubtful accounts receivable are written off when a settlement is reached for an amount less than the outstanding historical balance or when we have determined the balance will not be collected. | ||
The balances billed but not paid by customers pursuant to retainage provisions in long-term contracts and programs are due upon completion of the contracts and acceptance by the owner. At December 31, 2013, we had $3.5 million of retentions expected to be collected in 2014 recorded in accounts receivable and $2.7 million of retentions expected to be collected beyond 2014 recorded in other long-term assets in the Consolidated Balance Sheets. At December 31, 2012, we had $3.6 million of current retentions and $2.9 million of long-term retentions recorded in the Consolidated Balance Sheets. | ||
Inventories – Certain domestic inventories are valued by the last-in, first-out (“LIFO”) cost method. Inventories not valued by the LIFO method, other than inventoried costs relating to long-term contracts and programs, are valued using the first-in, first-out (“FIFO”) cost method, and are recorded at the lower of cost or market. Approximately 39% and 37% of inventories were valued by the LIFO method in 2013 and 2012, respectively. | ||
Inventoried costs relating to long-term contracts and programs are stated at the actual production cost, incurred to date, including direct labor and factory overhead. Progress payments related to long-term contracts and programs accounted for under the completed-contract method of accounting are shown as a reduction of inventories. Initial program start-up costs and other nonrecurring costs are expensed as incurred. Inventoried costs relating to long-term contracts and programs are reduced by any amounts in excess of estimated realizable value. | ||
Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation of plant and equipment is determined on the straight-line method over the following estimated useful lives of the assets: buildings and improvements, 5 to 25 years; machinery and equipment, 3 to 10 years. | ||
Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price over the fair value of the net assets of acquired businesses. Goodwill is not amortized, but instead is subject to annual impairment testing conducted each year as of October 1. The goodwill asset impairment test involves comparing the fair value of a reporting unit to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, a second step of comparing the implied fair value of the reporting unit’s goodwill to the carrying amount of that goodwill is required to measure the potential goodwill impairment loss. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. | ||
To estimate the fair value of our reporting units, we use both discounted cash flow and market valuation approaches. The discounted cash flow approach uses cash flow projections to calculate the fair value of each reporting unit while the market approach relies on market multiples of similar companies. The key assumptions used for the discounted cash flow approach include business projections, growth rates, and discount rates. The discount rate we use is based on our weighted average cost of capital. For the market approach, we chose a group of 14 companies we believe are representative of our diversified industrial peers. We used a 70% weighting for the discounted cash flow valuation approach and a 30% weighting for the market valuation approach, reflecting our belief that the discounted cash flow valuation approach provides a better indicator of value since it reflects the specific cash flows anticipated to be generated in the future by the business. | ||
We completed our required annual impairment tests of goodwill as of October 1, 2013, 2012, and 2011. These assessments did not indicate any impairment of the goodwill. | ||
Other intangible assets are recorded at cost, or when acquired as a part of a business combination, at estimated fair value. These assets include customer relationships, patents and other technology agreements, trademarks, licenses and non-compete agreements. Intangible assets that have definite lives are amortized using a method that reflects the pattern in which the economic benefits of the assets are consumed or the straight-line method over estimated useful lives of 3 to 25 years. Intangible assets with indefinite lives are subject to at least annual impairment testing, which compares the fair value of the intangible asset with its carrying amount using the relief from royalty method. The results of our assessments did not indicate any impairment to our indefinite-lived intangible assets for the years presented. | ||
Investment in GST – The historical business operations of Garlock Sealing Technologies LLC (“GST LLC”) and The Anchor Packing Company (“Anchor”) have resulted in a substantial volume of asbestos litigation in which plaintiffs have alleged personal injury or death as a result of exposure to asbestos fibers. Those subsidiaries manufactured and/or sold industrial sealing products, predominately gaskets and packing, that contained encapsulated asbestos fibers. Anchor is an inactive and insolvent indirect subsidiary of Coltec Industries Inc (“Coltec”). Our subsidiaries’ exposure to asbestos litigation and their relationships with insurance carriers have been managed through another Coltec subsidiary, Garrison Litigation Management Group, Ltd. (“Garrison”). GST LLC, Anchor and Garrison are collectively referred to as “GST.” | ||
On June 5, 2010 (the “Petition Date”), GST LLC, Anchor and Garrison filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of North Carolina in Charlotte (the “Bankruptcy Court”). GST’s financial results were included in our consolidated results through June 4, 2010, the day prior to the Petition Date. However, GAAP requires that an entity that files for protection under the U.S. Bankruptcy Code, whether solvent or insolvent, whose financial statements were previously consolidated with those of its parent, as GST and its subsidiaries were with EnPro, generally must be prospectively deconsolidated from the parent and the investment accounted for using the cost method. At deconsolidation, our investment was recorded at its estimated fair value on June 4, 2010. The cost method requires us to present our ownership interests in the net assets of GST at the Petition Date as an investment and to not recognize any income or loss from GST and subsidiaries in our results of operations during the reorganization period. When GST emerges from the jurisdiction of the Bankruptcy Court, the subsequent accounting will be determined based upon the applicable facts and circumstances at such time, including the terms of any plan of reorganization. | ||
The investment in GST is subject to periodic reviews for impairment. To estimate the fair value, we consider many factors and use both discounted cash flow and market valuation approaches. In the discounted cash flow approach, we use cash flow projections to calculate the fair value of GST. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, historical and projected growth rates, discount rates, estimated asbestos claim values and insurance collection projections. We do not adjust the assumption about asbestos claims values from the amount reflected in the liability GST recorded prior to the deconsolidation. The asbestos claims value will be determined in the claims resolution process, either through negotiations with claimant representatives or, absent a negotiated resolution, by the Bankruptcy Court after contested proceedings. Our estimates are based upon assumptions we have consistently applied in prior years and which are believed to be reasonable, but which by their nature are uncertain and unpredictable. For the market approach, we use recent acquisition multiples for businesses of similar size to GST. We use a 70% weighting for the discounted cash flow valuation approach and a 30% weighting for the market valuation approach, reflecting our belief that the discounted cash flow valuation approach provides the best indication of value since it reflects the specific cash flows anticipated to be generated in the future by GST. | ||
The ability of GST LLC and Garrison to continue as going concerns is dependent upon their ability to resolve their ultimate asbestos liability in the bankruptcy from their net assets, future cash flows, and available insurance proceeds, whether through the confirmation of a plan of reorganization or otherwise. As a result of the bankruptcy filing and related events, there can be no assurance the carrying values of the assets, including the carrying value of the business and the tax receivable, will be realized or that liabilities will be liquidated or settled for the amounts recorded. In addition, a plan of reorganization, or rejection thereof, could change the amounts reported in the GST LLC and Garrison financial statements and cause a material change in the carrying amount of our investment in GST. | ||
Debt – We have $172.5 million outstanding in aggregate principal amount of 3.9375% Convertible Senior Debentures (the “Convertible Debentures”). Applicable authoritative accounting guidance required that the liability component of the Convertible Debentures be recorded at its fair value as of the issuance date. This resulted in us recording debt in the amount of $111.2 million as of the October 2005 issuance date with the $61.3 million offset to the debt discount being recorded in equity on a net of tax basis. The debt discount, $15.9 million as of December 31, 2013, is being amortized through interest expense until the maturity date of October 15, 2015, resulting in an effective interest rate of approximately 9.5% and a $156.6 million net carrying amount of the liability component at December 31, 2013. As of December 31, 2012, the unamortized debt discount was $23.5 million and the net carrying amount of the liability component was $149.0 million. Interest expense related to the Convertible Debentures for the years ended December 31, 2013, 2012 and 2011 includes $6.8 million of contractual interest coupon in each period and $7.6 million, $6.9 million and $6.3 million, respectively, of debt discount amortization. | ||
Derivative Instruments – We use derivative financial instruments to manage our exposure to various risks. The use of these financial instruments modifies the exposure with the intent of reducing our risk. We do not use financial instruments for trading purposes, nor do we use leveraged financial instruments. The counterparties to these contractual arrangements are major financial institutions and GST LLC as described in Note 11. We use multiple financial institutions for derivative contracts to minimize the concentration of credit risk. The current accounting rules require derivative instruments, excluding certain contracts that are issued and held by a reporting entity that are both indexed to its own stock and classified in shareholders’ equity, be reported in the Consolidated Balance Sheets at fair value and that changes in a derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. | ||
We are exposed to foreign currency risks that arise from normal business operations. These risks include the translation of local currency balances on our foreign subsidiaries’ balance sheets, intercompany loans with foreign subsidiaries and transactions denominated in foreign currencies. We strive to control our exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. We have entered into contracts to hedge forecasted transactions occurring at various dates through December 2014 that are denominated in foreign currencies. The notional amount of foreign exchange contracts hedging foreign currency transactions was $51.1 million and $130.4 million at December 31, 2013 and 2012, respectively. | ||
Prior to 2013, we applied cash flow hedge accounting to certain of our foreign currency derivatives. We elected to discontinue this accounting treatment in the first quarter of 2013, consequently, all gains and losses that had been deferred in accumulated other comprehensive income (loss) at December 31, 2012 were reclassified to income in the quarter ended March 31, 2013. See Note 15 for additional information. The notional amounts of all of our foreign exchange contracts were recorded at their fair market value as of December 31, 2013 with changes in market value recorded in income. The earnings impact of any foreign exchange contract that is specifically related to the purchase of inventory is recorded in cost of sales and the changes in market value of all other contracts are recorded in selling, general and administrative expense in the Consolidated Statements of Operations. The balances of derivative assets are recorded in other current assets and the balances of derivative liabilities are recorded in accrued expenses in the Consolidated Balance Sheets. | ||
Fair Value Measurements – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | ||
We utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: | ||
• | Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. | |
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |
• | Level 3: Unobservable inputs that reflect our own assumptions. | |
The fair value of intangible assets associated with acquisitions was determined using a discounted cash flow analysis. Projecting discounted future cash flows required us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital and the appropriate discount rate. This non-recurring fair value measurement would be classified as Level 3 due to the absence of quoted market prices or observable inputs for assets of a similar nature. | ||
Similarly, the fair value computations for the recurring impairment analyses of goodwill, indefinite-lived intangible assets and the investment in GST would be classified as Level 3 due to the absence of quoted market prices or observable inputs. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, historical and projected growth rates and discount rates. Significant changes in any of those inputs could result in a significantly different fair value measurement. | ||
Recently Issued Accounting Guidance | ||
In July 2013, accounting guidance was amended to reduce diversity in practice in the presentation of an unrecognized tax benefit when a tax loss or credit carryforward exists. This amendment is effective for periods beginning after December 15, 2013 and must be applied prospectively for unrecognized tax benefits that exist at the effective date. Early adoption is permitted. We are currently evaluating the potential impact of this change on our consolidated financial results and balance sheet. | ||
In February 2013, accounting guidance was amended to require companies to report, in one place, information about reclassifications out of accumulated other comprehensive income. Companies are also required to present reclassifications by component when reporting changes in the accumulated other comprehensive income balances. These changes became effective prospectively in fiscal years and interim periods within those years beginning after December 15, 2012. Other than the change in presentation, there was no effect on our consolidated financial results. |
Acquisitions
Acquisitions | 12 Months Ended | ||
Dec. 31, 2013 | |||
Business Combinations [Abstract] | ' | ||
Acquisitions | ' | ||
2 | Acquisitions | ||
In January 2013, we acquired certain assets and assumed certain liabilities of a small distributor of industrial seals in Singapore which is managed as part of the Garlock operations in the Sealing Products segment. The acquisition was paid for with $2.0 million of cash. | |||
In April 2012, we acquired Motorwheel Commercial Vehicle Systems, Inc. (“Motorwheel”), a leading U.S. manufacturer of lightweight brake drums for heavy-duty trucks and other commercial vehicles. Motorwheel also sells wheel-end component assemblies for the heavy-duty market, sells fasteners for wheel-end applications and provides related services to its customers, including product development, testing and certification. The business operates manufacturing facilities in Chattanooga, Tennessee and Berea, Kentucky. Motorwheel is managed as part of the Stemco operations in the Sealing Products segment. The acquisition was paid for with approximately $85 million of cash, which was funded by additional borrowings from our revolving credit facility. | |||
Because the assets, liabilities and results of operations for the 2013 and 2012 acquisitions are not significant to our consolidated financial position or results of operations, pro forma financial information and additional disclosures are not presented. | |||
In January 2011, we acquired certain assets and assumed certain liabilities of Rome Tool & Die, Inc., a leading supplier of steel brake shoes to the North American heavy-duty truck market. In February 2011, we acquired the business of Pipeline Seal and Insulator, Inc. and its affiliates, a privately-owned group of companies that manufacture products for the safe flow of fluids through pipeline transmission and distribution systems worldwide. In February 2011, we acquired the Mid Western group of companies, a privately-owned business primarily serving the oil and gas drilling, production and processing industries of Western Canada. In July 2011, we acquired Tara Technologies Corporation, a privately-held company that offers highly engineered products and solutions to the semiconductor, aerospace, energy and medical markets. In August 2011, we acquired certain assets and assumed certain liabilities of PI Bearing Technologies, a privately-held manufacturer of bearing blocks and other bearing products used in fluid power applications. The acquisitions completed during 2011 were paid for with $228.2 million in cash. | |||
The following pro forma condensed consolidated financial results of operations for the year ended December 31, 2011 is presented as if the 2011 acquisitions had been completed prior to 2011 (in millions): | |||
Pro forma net sales | $1,161.70 | ||
Pro forma net income | 50.9 | ||
The supplemental pro forma net income was adjusted to exclude $2.2 million of pre-tax acquisition-related costs and $1.7 million of pre-tax nonrecurring expenses related to the fair value adjustment to acquisition date inventory. These pro forma financial results have been prepared for comparative purposes only and do not reflect the effect of synergies that would have been expected to result from the integration of these acquisitions. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the combinations occurred prior to 2011, or of future results of the consolidated entities. |
Other_Income_Expense
Other Income (Expense) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Other Income (Expense) | ' | |||||||||||||||
3 | Other Income (Expense) | |||||||||||||||
Operating | ||||||||||||||||
We incurred $6.7 million, $5.0 million and $1.4 million of restructuring costs during the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||
During 2013, we initiated a number of restructuring activities throughout our operations, the most significant of which were at our Technetics, Compressor Products International ("CPI") and Fairbanks Morse Engine ("FME") businesses. At Technetics and CPI, we consolidated several of our North American and European manufacturing operations and service centers into other existing sites. At FME, we offered a voluntary early retirement package to all salaried and hourly employees that were at least 60 years old. There was an additional reduction in workforce at FME in reaction to declining market conditions. Workforce reductions announced as a result of our 2013 restructuring activities totaled 98 salaried administrative and hourly manufacturing positions, most of which had been terminated by December 31, 2013. | ||||||||||||||||
Restructuring reserves at December 31, 2013, as well as activity during the year, consisted of: | ||||||||||||||||
Balance | Provision | Payments | Balance | |||||||||||||
December 31, | December 31, | |||||||||||||||
2012 | 2013 | |||||||||||||||
(in millions) | ||||||||||||||||
Personnel-related costs | $ | 0.1 | $ | 5.2 | $ | (2.8 | ) | $ | 2.5 | |||||||
Facility relocation and closure costs | 0.8 | 1.5 | (1.6 | ) | 0.7 | |||||||||||
$ | 0.9 | $ | 6.7 | $ | (4.4 | ) | $ | 3.2 | ||||||||
Restructuring reserves at December 31, 2012, as well as activity during the year, consisted of: | ||||||||||||||||
Balance | Provision | Payments | Balance | |||||||||||||
December 31, | December 31, | |||||||||||||||
2011 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Personnel-related costs | $ | — | $ | 2.8 | $ | (2.7 | ) | $ | 0.1 | |||||||
Facility relocation and closure costs | 0.6 | 2.2 | (2.0 | ) | 0.8 | |||||||||||
$ | 0.6 | $ | 5 | $ | (4.7 | ) | $ | 0.9 | ||||||||
Restructuring reserves at December 31, 2011, as well as activity during the year, consisted of: | ||||||||||||||||
31-Dec-10 | Provision | Payments | Balance | |||||||||||||
December 31, | ||||||||||||||||
2011 | ||||||||||||||||
(in millions) | ||||||||||||||||
Personnel-related costs | $ | 0.7 | $ | 0.1 | $ | (0.8 | ) | $ | — | |||||||
Facility relocation costs | 0.2 | 1.3 | (0.9 | ) | 0.6 | |||||||||||
$ | 0.9 | $ | 1.4 | $ | (1.7 | ) | $ | 0.6 | ||||||||
Restructuring costs by reportable segment are as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Sealing Products | $ | 0.9 | $ | 1.5 | $ | 1.3 | ||||||||||
Engineered Products | 3.7 | 3.5 | 0.1 | |||||||||||||
Engine Products and Services | 2.1 | — | — | |||||||||||||
$ | 6.7 | $ | 5 | $ | 1.4 | |||||||||||
Also included in other operating expense for the years ended December 31, 2013, 2012 and 2011 was $2.4 million, $1.5 million and $0.9 million, respectively, primarily consisting of legal fees related to the bankruptcy of certain subsidiaries discussed further in Note 18. | ||||||||||||||||
Non-Operating | ||||||||||||||||
During 2013 and 2012, we recorded expense of $6.3 million and $1.2 million, respectively, due to environmental reserve increases based on new facts at several specific sites. These sites all related to previously owned businesses. Refer to Note 19, "Commitments and Contingencies - Environmental" for additional information about our environmental liabilities. | ||||||||||||||||
In 2011, we contributed a guaranteed investment contract (“GIC”) received in connection with the Crucible Benefits Trust settlement agreement to our U.S. defined benefit pension plans . The GIC was valued at $21.4 million for purposes of the pension plan contribution which resulted in a $2.9 million gain. Refer to Note 19, “Commitments and Contingencies – Crucible Steel Corporation a/k/a Crucible, Inc.” for additional information about the settlement agreement. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
4 | Income Taxes | ||||||||||||
Income before income taxes as shown in the Consolidated Statements of Operations consists of the following: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Domestic | $ | (4.3 | ) | $ | 27.7 | $ | 22.6 | ||||||
Foreign | 40.1 | 35.8 | 42.4 | ||||||||||
Total | $ | 35.8 | $ | 63.5 | $ | 65 | |||||||
A summary of income tax expense in the Consolidated Statements of Operations is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (3.7 | ) | $ | 9.3 | $ | 4.7 | ||||||
Foreign | 10 | 5.5 | 11.3 | ||||||||||
State | 0.4 | 1.8 | 0.5 | ||||||||||
6.7 | 16.6 | 16.5 | |||||||||||
Deferred: | |||||||||||||
Federal | 3.3 | 3 | 2.7 | ||||||||||
Foreign | (1.5 | ) | 3.5 | 1.5 | |||||||||
State | (0.1 | ) | (0.6 | ) | 0.1 | ||||||||
1.7 | 5.9 | 4.3 | |||||||||||
Total | $ | 8.4 | $ | 22.5 | $ | 20.8 | |||||||
Significant components of deferred income tax assets and liabilities at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(in millions) | |||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating losses and tax credits | $ | 11.3 | $ | 12.3 | |||||||||
Accrual for post-retirement benefits other than pensions | 3 | 4.5 | |||||||||||
Environmental reserves | 6.2 | 4.5 | |||||||||||
Retained liabilities of previously owned businesses | 5.3 | 8.5 | |||||||||||
Accruals and reserves | 5.6 | 5.4 | |||||||||||
Pensions | 14.5 | 13.6 | |||||||||||
Minimum pension liability | 16.4 | 38.3 | |||||||||||
Inventories | 6.7 | 6 | |||||||||||
Interest | 7.4 | 6.3 | |||||||||||
Compensation and benefits | 11.8 | 9.3 | |||||||||||
Gross deferred income tax assets | 88.2 | 108.7 | |||||||||||
Valuation allowance | (17.6 | ) | (17.7 | ) | |||||||||
Total deferred income tax assets | 70.6 | 91 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | (37.9 | ) | (36.1 | ) | |||||||||
GST deconsolidation gain | (21.4 | ) | (21.4 | ) | |||||||||
Total deferred income tax liabilities | (59.3 | ) | (57.5 | ) | |||||||||
Net deferred tax assets | $ | 11.3 | $ | 33.5 | |||||||||
At December 31, 2013, we had $24.9 million of foreign tax net operating loss carryforwards of which $9.2 million expire at various dates beginning in 2014, and $15.7 million have an indefinite carryforward period. We also had state tax net operating loss carryforwards with a tax effect of $2.9 million which expire at various dates between 2014 through 2033. These net operating loss carryforwards may be used to offset a portion of future taxable income and, thereby, reduce or eliminate our U.S. federal, state or foreign income taxes otherwise payable. | |||||||||||||
We determined, based on the available evidence, that it is uncertain whether future taxable income of certain of our foreign subsidiaries will be significant enough or of the correct character to recognize certain of these deferred tax assets. As a result, valuation allowances of $17.6 million and $17.7 million have been recorded as of December 31, 2013 and 2012, respectively. Valuation allowances primarily relate to certain state and foreign net operating losses and other net deferred tax assets in jurisdictions where future taxable income is uncertain. A portion of the valuation allowance may be associated with deferred tax assets recorded in purchase accounting. In accordance with applicable accounting guidelines, any reversal of a valuation allowance that was recorded in purchase accounting reduces income tax expense. | |||||||||||||
The effective income tax rate from operations varied from the statutory federal income tax rate as follows: | |||||||||||||
Percent of Pretax Income | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
US taxation of foreign profits, net of foreign tax credits | 3 | (4.5 | ) | (3.5 | ) | ||||||||
Research and employment tax credits | (7.2 | ) | — | (2.0 | ) | ||||||||
State and local taxes | 7.5 | 1.8 | 0.9 | ||||||||||
Domestic production activities | — | (2.8 | ) | (2.7 | ) | ||||||||
Foreign tax rate differences | (8.5 | ) | (2.2 | ) | (3.6 | ) | |||||||
Uncertain tax positions and prior adjustments | (5.5 | ) | (0.4 | ) | 1.8 | ||||||||
Statutory changes in tax rates | (1.3 | ) | (0.4 | ) | (0.8 | ) | |||||||
Valuation allowance | (6.0 | ) | 7.5 | 4.8 | |||||||||
Nondeductible expenses | 3.5 | 1.7 | 2 | ||||||||||
Other items, net | 2.9 | (0.4 | ) | 0.2 | |||||||||
Effective income tax rate | 23.4 | % | 35.3 | % | 32.1 | % | |||||||
We have not provided for the federal and foreign withholding taxes on approximately $220 million of foreign subsidiaries’ undistributed earnings as of December 31, 2013, because such earnings are intended to be reinvested indefinitely. Upon repatriation, certain foreign countries impose withholding taxes. The amount of withholding tax that would be payable on remittance of the entire amount would be $2.2 million. Although such earnings are intended to be reinvested indefinitely, any tax liability for undistributed earnings, including withholding taxes, would be negated by the availability of corresponding dividends received deductions and foreign tax credits. | |||||||||||||
As of December 31, 2013 and 2012, we had $5.9 million and $6.3 million, respectively, of gross unrecognized tax benefits. Of the gross unrecognized tax benefit balances as of December 31, 2013 and 2012, $4.5 million and $3.2 million, respectively, would have an impact on our effective tax rate if ultimately recognized. | |||||||||||||
We record interest and penalties related to unrecognized tax benefits in income tax expense. In addition to the gross unrecognized tax benefits above, we had $0.8 million and $0.5 million accrued for interest and penalties at December 31, 2013 and 2012, respectively. Income tax expense for the years ended December 31, 2013, 2012 and 2011, includes $0.1 million, $(0.2) million and $(0.2) million, respectively, for interest and penalties related to unrecognized tax benefits. The amounts listed above for accrued interest do not reflect the benefit of any tax deduction, which might be available if the interest were ultimately paid. | |||||||||||||
A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (excluding interest) is as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 6.3 | $ | 4.8 | $ | 2.4 | |||||||
Additions as a result of acquisitions | — | 0.1 | 0.5 | ||||||||||
Additions based on tax positions related to the current year | 1 | 0.9 | 0.7 | ||||||||||
Additions for tax positions of prior years | 2.6 | 2.7 | 3.1 | ||||||||||
Reductions for tax positions of prior years | (0.8 | ) | (0.2 | ) | (0.1 | ) | |||||||
Reductions as a result of a lapse in the statute of limitations | (3.4 | ) | (1.9 | ) | (1.5 | ) | |||||||
Reductions as a result of audit settlements | — | (0.1 | ) | (0.3 | ) | ||||||||
Changes due to fluctuations in foreign currency | 0.2 | — | — | — | |||||||||
Balance at end of year | $ | 5.9 | $ | 6.3 | $ | 4.8 | |||||||
The IRS completed the field examination for our 2008, 2009, and 2010 U.S. federal income tax returns during the third quarter of 2012. As a result of the IRS’s conclusion of its field examination, we reduced our gross unrecognized tax benefits by $2.0 million to reflect amounts determined to be effectively settled. US federal income tax returns after 2010 remain open to examination. We and our subsidiaries are also subject to income tax in multiple state and foreign jurisdictions. Various foreign and state tax returns are currently under examination. The most significant of these include France and Germany. Substantially all significant state, local and foreign income tax returns for the years 2007 and forward are open to examination. We expect that some of these examinations may conclude within the next twelve months, however, the final outcomes are not yet determinable. If these examinations are concluded or effectively settled within the next twelve months, it could reduce the associated gross unrecognized tax benefits by approximately $3.2 million. In addition, another $0.7 million in gross unrecognized tax benefits may be recognized within the next twelve months as the applicable statute of limitations expires. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
5 | Earnings Per Share | |||||||||||
Basic earnings per share is computed by dividing the applicable net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is calculated using the weighted-average number of shares of common stock as adjusted for any potentially dilutive shares as of the balance sheet date. The computation of basic and diluted earnings per share is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator (basic and diluted): | ||||||||||||
Net income | $ | 27.4 | $ | 41 | $ | 44.2 | ||||||
Denominator: | ||||||||||||
Weighted-average shares – basic | 20.9 | 20.7 | 20.5 | |||||||||
Share-based awards | 0.2 | 0.4 | 0.3 | |||||||||
Convertible debentures and related warrants | 2.4 | 0.5 | 0.7 | |||||||||
Weighted-average shares – diluted | 23.5 | 21.6 | 21.5 | |||||||||
Earnings per share: | ||||||||||||
Basic | $ | 1.31 | $ | 1.99 | $ | 2.15 | ||||||
Diluted | $ | 1.17 | $ | 1.9 | $ | 2.06 | ||||||
As discussed further in Note 12, we have issued Convertible Debentures. Under the terms of the Convertible Debentures, upon conversion, we will settle the par amount of our obligations in cash and the remaining obligations, if any, in common shares. Pursuant to applicable accounting guidelines, we include the conversion option effect in diluted earnings per share during such periods when our average stock price exceeds the stated conversion price. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
6 | Inventories | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Finished products | $ | 84.3 | $ | 72 | ||||
Work in process | 36 | 33.4 | ||||||
Raw materials and supplies | 42.8 | 36.3 | ||||||
163.1 | 141.7 | |||||||
Reserve to reduce certain inventories to LIFO basis | (14.0 | ) | (12.4 | ) | ||||
Manufacturing inventories | 149.1 | 129.3 | ||||||
Incurred costs related to long-term contracts | — | 16.6 | ||||||
Progress payments related to long-term contracts | — | (15.1 | ) | |||||
Net balance associated with completed-contract inventories | — | 1.5 | ||||||
Total inventories | $ | 149.1 | $ | 130.8 | ||||
Incurred costs related to long-term contracts in the table above represent inventoried work in process and finished products related to engine contracts accounted for under the completed-contract method. In addition to inventoried costs, we also incur costs associated with deposits and progress payments to our vendors for long lead time manufactured components associated with engine projects that are reflected in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. At December 31, 2013 and 2012, deposits and progress payments for these long lead time components accounted for under the completed contract method totaled $6.1 million and $2.9 million, respectively. | ||||||||
Progress payments related to long-term contracts in the table above are either advanced billings or milestone billings to the customer accounted for under the completed-contract method which have not yet been earned. Upon shipment of the completed engine and receipt by the customer, revenue associated with the engine is recognized, and the incurred inventoried costs and progress payments are relieved. | ||||||||
At December 31, 2013, progress payments related to long-term contracts totaled $25.6 million and was in excess of incurred costs totaling $14.2 million, resulting in a net liability balance of $11.4 million. As such, the net liability balance is reflected in accrued expenses on the accompanying Consolidated Balance Sheet. | ||||||||
See Note 7 for a presentation of the incurred costs and progress payments associated with engine contracts accounted for under the percentage-of-completion method. |
PercentageofCompletion_LongTer
Percentage-of-Completion Long-Term Contracts | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Contractors [Abstract] | ' | |||||||
Percentage-of-Completion Long-Term Contracts | ' | |||||||
7 | Percentage-of-Completion Long-Term Contracts | |||||||
See Note 1, "Revenue Recognition" for information regarding engine contracts accounted for under the POC method. | ||||||||
Amounts recognized in the accompanying financial statements are as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Cumulative revenues recognized on uncompleted POC contracts | $ | 141.1 | $ | 76.9 | ||||
Cumulative billings on uncompleted POC contracts | 146.6 | 71.2 | ||||||
$ | (5.5 | ) | $ | 5.7 | ||||
These amounts were included in the accompanying Consolidated Balance Sheets under the following captions: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Accounts receivable (POC revenue recognized in excess of billings) | $ | 4.3 | $ | 10.3 | ||||
Accrued expenses (POC billings where revenue has not yet been earned) | (9.8 | ) | (4.6 | ) | ||||
$ | (5.5 | ) | $ | 5.7 | ||||
At December 31, 2013 and 2012, deposits and progress payments for long lead time components accounted for under the POC method totaled $4.5 million and $5.2 million, respectively, and are reflected in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. See Note 6 for a presentation of the incurred costs and progress payments associated with engine contracts accounted for under the completed-contract method. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
8 | Property, Plant and Equipment | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land | $ | 9.2 | $ | 5.8 | ||||
Buildings and improvements | 97.1 | 96.3 | ||||||
Machinery and equipment | 370.1 | 341.6 | ||||||
Construction in progress | 16.7 | 25.3 | ||||||
493.1 | 469 | |||||||
Less accumulated depreciation | (305.6 | ) | (283.5 | ) | ||||
Total | $ | 187.5 | $ | 185.5 | ||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
9 | Goodwill and Other Intangible Assets | |||||||||||||||
The changes in the net carrying value of goodwill by reportable segment for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||
Sealing | Engineered | Engine | Total | |||||||||||||
Products | Products | Products | ||||||||||||||
and | ||||||||||||||||
Services | ||||||||||||||||
(in millions) | ||||||||||||||||
Gross goodwill as of December 31, 2011 | $ | 164.1 | $ | 166.5 | $ | 7.1 | $ | 337.7 | ||||||||
Accumulated impairment losses | (27.8 | ) | (108.7 | ) | — | (136.5 | ) | |||||||||
Goodwill as of December 31, 2011 | 136.3 | 57.8 | 7.1 | 201.2 | ||||||||||||
Foreign currency translation | 0.6 | 1.8 | — | 2.4 | ||||||||||||
Acquisitions | 15.9 | 0.9 | — | 16.8 | ||||||||||||
Gross goodwill as of December 31, 2012 | 180.6 | 169.2 | 7.1 | 356.9 | ||||||||||||
Accumulated impairment losses | (27.8 | ) | (108.7 | ) | — | (136.5 | ) | |||||||||
Goodwill as of December 31, 2012 | 152.8 | 60.5 | 7.1 | 220.4 | ||||||||||||
Foreign currency translation | 0.9 | (0.9 | ) | — | — | |||||||||||
Acquisitions | — | (0.2 | ) | — | (0.2 | ) | ||||||||||
Gross goodwill as of December 31, 2013 | 181.5 | 168.1 | 7.1 | 356.7 | ||||||||||||
Accumulated impairment losses | (27.8 | ) | (108.7 | ) | — | (136.5 | ) | |||||||||
Goodwill as of December 31, 2013 | $ | 153.7 | $ | 59.4 | $ | 7.1 | $ | 220.2 | ||||||||
Identifiable intangible assets are as follows: | ||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
(in millions) | ||||||||||||||||
Amortized: | ||||||||||||||||
Customer relationships | $ | 191.2 | $ | 85 | $ | 190 | $ | 70.7 | ||||||||
Existing technology | 53.9 | 18.8 | 53.8 | 13.3 | ||||||||||||
Trademarks | 33.7 | 16.9 | 33.2 | 14.8 | ||||||||||||
Other | 23.4 | 17.9 | 23.6 | 15.7 | ||||||||||||
302.2 | 138.6 | 300.6 | 114.5 | |||||||||||||
Indefinite-Lived: | ||||||||||||||||
Trademarks | 36.5 | — | 36.4 | — | ||||||||||||
Total | $ | 338.7 | $ | 138.6 | $ | 337 | $ | 114.5 | ||||||||
Amortization expense for the years ended December 31, 2013, 2012 and 2011 was $24.1 million, $24.3 million and $19.8 million, respectively. | ||||||||||||||||
The estimated amortization expense for those intangible assets for the next five years is as follows (in millions): | ||||||||||||||||
2014 | $ | 22.8 | ||||||||||||||
2015 | $ | 20.8 | ||||||||||||||
2016 | $ | 18.6 | ||||||||||||||
2017 | $ | 17.5 | ||||||||||||||
2018 | $ | 17.3 | ||||||||||||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses | ' | |||||||
10 | Accrued Expenses | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Salaries, wages and employee benefits | $ | 45.3 | $ | 47.2 | ||||
Interest | 30 | 28.8 | ||||||
Contract advances | 23.7 | 7.1 | ||||||
Income and other taxes | 10.8 | 13.1 | ||||||
Other | 31.1 | 25.6 | ||||||
$ | 140.9 | $ | 121.8 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Text Block [Abstract] | ' | |||||||||||||
Related Party Transactions | ' | |||||||||||||
11 | Related Party Transactions | |||||||||||||
The deconsolidation of GST from our financial results, discussed more fully in Note 1, required certain intercompany indebtedness described below to be reflected on our Consolidated Balance Sheets. | ||||||||||||||
As of December 31, 2013 and 2012, Coltec Finance Company Ltd., a wholly-owned subsidiary of Coltec, had aggregate, short-term borrowings of $22.0 million and $10.1 million, respectively, from GST’s subsidiaries in Mexico and Australia. These unsecured obligations were denominated in the currency of the lending party, and bear interest based on the applicable one-month interbank offered rate for each foreign currency involved. | ||||||||||||||
Effective as of January 1, 2010, Coltec entered into an original issue amount $73.4 million Amended and Restated Promissory Note due January 1, 2017 (the “Coltec Note”) in favor of GST LLC, and our subsidiary Stemco LP entered into an original issue amount $153.8 million Amended and Restated Promissory Note due January 1, 2017, in favor of GST LLC (the “Stemco Note”, and together with the Coltec Note, the “Notes Payable to GST”). The Notes Payable to GST amended and replaced promissory notes in the same principal amounts which were initially issued in March 2005, and which expired on January 1, 2010. | ||||||||||||||
The Notes Payable to GST bear interest at 11% per annum, of which 6.5% is payable in cash and 4.5% is added to the principal amount of the Notes Payable to GST as payment-in-kind (“PIK”) interest, with interest due on January 31 of each year. In conjunction with the interest payments in 2013 and 2012, $16.2 million and $15.4 million, respectively, was paid in cash and PIK interest of $11.2 million and $10.7 million, respectively, was added to the principal balance of the Notes Payable to GST. If GST LLC is unable to pay ordinary course operating expenses, under certain conditions, they can require Coltec and Stemco to pay in cash the accrued PIK interest necessary to meet such ordinary course operating expenses, subject to certain caps. The interest due under the Notes Payable to GST may be satisfied through offsets of amounts due under intercompany services agreements pursuant to which we provide certain corporate services, make available access to group insurance coverage to GST, make advances to third party providers related to payroll and certain benefit plans sponsored by GST, and permit employees of GST to participate in certain of our benefit plans. | ||||||||||||||
The Coltec Note is secured by Coltec’s pledge of certain of its equity ownership in specified U.S. subsidiaries. The Stemco Note is guaranteed by Coltec and secured by Coltec’s pledge of its interest in Stemco. The Notes Payable to GST are subordinated to any obligations under our senior secured revolving credit facility described in Note 12. | ||||||||||||||
We regularly transact business with GST through the purchase and sale of products. We also provide services for GST including information technology, supply chain, treasury, accounting and tax administration, legal, and human resources under a support services agreement. GST is included in our consolidated U.S. federal income tax return and certain state combined income tax returns. As the parent of these consolidated tax groups, we are liable for, and pay, income taxes owed by the entire group. We have agreed with GST to allocate group taxes to GST based on the U.S. consolidated tax return regulations and current income tax accounting guidance. This method generally allocates taxes to GST as if it were a separate taxpayer. As a result, we carry an income tax receivable from GST related to this allocation. | ||||||||||||||
Amounts included in our financial statements arising from transactions with GST include the following: | ||||||||||||||
Financial Statement | Years Ended December 31, | |||||||||||||
Location | 2013 | 2012 | 2011 | |||||||||||
(in millions) | ||||||||||||||
Sales to GST | Net sales | $ | 24.4 | $ | 26.1 | $ | 24.4 | |||||||
Purchases from GST | Cost of sales | $ | 26.5 | $ | 20.1 | $ | 21.7 | |||||||
Interest expense to GST | Interest expense | $ | 29.1 | $ | 27.8 | $ | 26.7 | |||||||
Financial Statement | As of December 31, | |||||||||||||
Location | 2013 | 2012 | ||||||||||||
(in millions) | ||||||||||||||
Due from GST | Accounts receivable | $ | 18.3 | $ | 20.5 | |||||||||
Income tax receivable from GST | Other assets | $ | 46.9 | $ | 32.8 | |||||||||
Due to GST | Accounts payable | $ | 6.7 | $ | 5 | |||||||||
Accrued interest to GST | Accrued expenses | $ | 28.5 | $ | 27.4 | |||||||||
Additionally, we had outstanding foreign exchange forward contracts with GST LLC involving the Australian dollar, Canadian dollar, Mexican peso and U.S. dollar with a notional amount of $3.2 million and $21.9 million as of December 31, 2013 and 2012, respectively. These related party contracts were eliminated in consolidation prior to the deconsolidation of GST. |
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
12 | Long-Term Debt | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Convertible Debentures | $ | 156.6 | $ | 149 | ||||
Revolving debt | 7.6 | 34.2 | ||||||
Other notes payable | 0.9 | 2.1 | ||||||
165.1 | 185.3 | |||||||
Less current maturities of long-term debt | 156.6 | 1 | ||||||
$ | 8.5 | $ | 184.3 | |||||
Convertible Debentures | ||||||||
We have $172.5 million outstanding in aggregate principal amount of Convertible Debentures. The Convertible Debentures bear interest at the annual rate of 3.9375%, with interest due on April 15 and October 15 of each year, and will mature on October 15, 2015, unless they are converted prior to that date. The Convertible Debentures are direct, unsecured and unsubordinated obligations and rank equal in priority with all unsecured and unsubordinated indebtedness and senior in right of payment to all subordinated indebtedness. The Convertible Debentures do not contain financial covenants. | ||||||||
Holders may convert the Convertible Debentures under certain circumstances. Upon conversion of any Convertible Debentures, the principal amount would be settled in cash and the premium, if any, in shares of our common stock. The initial conversion rate, which is subject to adjustment, is 29.5972 shares of common stock per $1,000 principal amount of Convertible Debentures. This is equal to an initial conversion price of $33.79 per share. The Convertible Debentures may be converted under any of the following circumstances: | ||||||||
• | during any fiscal quarter (and only during such fiscal quarter), if the closing price of our common stock for at least 20 trading days in the 30 consecutive trading-day period ending on the last trading day of the preceding fiscal quarter was 130% or more of the then current conversion price per share of common stock on that 30th trading day; | |||||||
• | during the five business day period after any five consecutive trading-day period (which is referred to as the “measurement period”) in which the trading price per debenture for each day of the measurement period was less than 98% of the product of the closing price of our common stock and the applicable conversion rate for the debentures; | |||||||
• | on or after September 15, 2015; | |||||||
• | upon the occurrence of specified corporate transactions; or | |||||||
• | in connection with a transaction or event constituting a “change of control.” | |||||||
As of January 1, 2014, the Convertible Debentures remained convertible by holders of the Convertible Debentures. This conversion right was triggered by the share price conversion condition described in the first bullet above. The Convertible Debentures will be convertible until March 31, 2014 and may be convertible thereafter if one or more of the conversion conditions is satisfied during future measurement periods. Because the Convertible Debentures are currently convertible, the principal balance less the remaining unamortized debt discount was reflected in current maturities of long-term debt as of December 31, 2013. In addition, we classified the excess cash required to redeem the Convertible Debentures over their carrying value as temporary equity. | ||||||||
We used a portion of the net proceeds from the sale of the Convertible Debentures to enter into call options, consisting of hedge and warrant transactions, which entitle us to acquire shares of our stock from a financial institution at $33.79 per share and entitle the financial institution to acquire shares from us at $46.78 per share. This will reduce potential dilution to our common shareholders from conversion of the Convertible Debentures by increasing the effective conversion price to $46.78 per share. | ||||||||
Credit Facility | ||||||||
Our primary U.S. operating subsidiaries, other than GST LLC, are parties to a senior secured revolving credit facility with a maximum availability of $175 million. Actual borrowing availability under the credit facility is determined by reference to a borrowing base of specified percentages of eligible accounts receivable, inventory, equipment and real property elected to be pledged, and is reduced by usage of the facility, including outstanding letters of credit, and any reserves. Under certain conditions, we may request an increase to the facility maximum availability to $225 million in total. Any increase is dependent on obtaining future lender commitments for those amounts, and no current lender has any obligation to provide such commitment. The credit facility matures on July 17, 2015 unless, prior to that date, the Convertible Debentures are paid in full, refinanced on certain terms or defeased, in which case the facility will mature on March 30, 2016. | ||||||||
Borrowings under the credit facility are secured by specified assets of the Company and our U.S. operating subsidiaries, other than GST LLC, and primarily include accounts receivable, inventory, equipment, real property elected to be pledged, deposit accounts, intercompany loans, intellectual property and related contract rights, general intangibles related to any of the foregoing and proceeds related to disposal or sale of the foregoing. Subsidiary capital stock is not included as collateral. | ||||||||
Outstanding borrowings under the credit facility bear interest at a rate equal to, at our option, either (1) a base/prime rate plus an applicable margin or (2) the adjusted one, two, three or six-month LIBOR rate plus an applicable margin. Pricing under the credit facility at any particular time is determined by reference to a pricing grid based on average daily availability under the facility for the immediately prior fiscal quarter. Under the pricing grid, the applicable margins range from 0.75% to 1.25% for base/prime rate loans and from 1.75% to 2.25% for LIBOR loans. At December 31, 2013, the applicable margin for base/prime rate loans was 1.00% and the applicable margin for LIBOR loans was 2.00%. The undrawn portion of the credit facility is subject to an unused line fee. Outstanding letters of credit are subject to an annual fee equal to the applicable margin for LIBOR loans under the credit facility as in effect from time to time, plus a fronting fee on the aggregate undrawn amount of the letters of credit. | ||||||||
The credit agreement contains customary covenants and restrictions for an asset-based credit facility, including negative covenants limiting certain: fundamental changes (such as merger transactions), loans, incurrence of debt other than specifically permitted debt, transactions with affiliates that are not on arm’s-length terms, incurrence of liens other than specifically permitted liens, repayment of subordinated debt (except for scheduled payments in accordance with applicable subordination documents), prepayments of other debt, dividends, asset dispositions other than as specifically permitted, and acquisitions and other investments other than as specifically permitted. The credit facility also requires us to maintain a minimum fixed charge coverage ratio in the event the amount available for borrowing is less than certain calculated amounts which vary based on the available borrowing base and the aggregate commitments of the lenders under the credit facility. | ||||||||
The credit facility contains events of default including, but not limited to, nonpayment of principal or interest, violation of covenants, breaches of representations and warranties, cross-default to other debt, bankruptcy and other insolvency events, material judgments, certain ERISA events, actual or asserted invalidity of loan documentation and certain changes of control. | ||||||||
The borrowing availability under our senior secured revolving credit facility at December 31, 2013, was $117.1 million after giving consideration to $4.8 million of letters of credit outstanding and $7.6 million of outstanding revolver borrowings. | ||||||||
Future principal payments on long-term debt are as follows: | ||||||||
(in millions) | ||||||||
2014 | $ | 0.2 | ||||||
2015 | 180.2 | |||||||
2016 | 0.1 | |||||||
2017 | 0.1 | |||||||
2018 | 0.1 | |||||||
Thereafter | 0.3 | |||||||
$ | 181 | |||||||
The payments for long-term debt shown in the table above reflect the contractual principal amount for the Convertible Debentures. In the Consolidated Balance Sheets, this amount is shown net of a debt discount pursuant to applicable accounting rules. The payment date shown for the Convertible Debentures in the table above is the contractual due date in 2015, but they are currently convertible, so they could be paid earlier than 2015 if they were converted. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
13 | Fair Value Measurements | |||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized as follows: | ||||||||||||||||
Fair Value Measurements as of | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
European government money market | $ | 21.7 | $ | 21.7 | $ | — | $ | — | ||||||||
21.7 | 21.7 | — | — | |||||||||||||
Guaranteed investment contract | 2.8 | — | 2.8 | — | ||||||||||||
Foreign currency derivatives | 0.4 | — | 0.4 | — | ||||||||||||
Deferred compensation assets | 5.3 | 5.3 | — | — | ||||||||||||
$ | 30.2 | $ | 27 | $ | 3.2 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Deferred compensation liabilities | $ | 7.6 | $ | 7.6 | $ | — | $ | — | ||||||||
Foreign currency derivatives | 0.4 | — | 0.4 | — | ||||||||||||
$ | 8 | $ | 7.6 | $ | 0.4 | $ | — | |||||||||
Fair Value Measurements as of | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
European government money market | $ | 21.9 | $ | 21.9 | $ | — | $ | — | ||||||||
21.9 | 21.9 | — | — | |||||||||||||
Guaranteed investment contract | 2.6 | — | 2.6 | — | ||||||||||||
Foreign currency derivatives | 0.4 | — | 0.4 | — | ||||||||||||
Deferred compensation assets | 4.5 | 4.5 | — | — | ||||||||||||
$ | 29.4 | $ | 26.4 | $ | 3 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Deferred compensation liabilities | $ | 6.5 | $ | 6.5 | $ | — | $ | — | ||||||||
Foreign currency derivatives | 0.9 | — | 0.9 | — | ||||||||||||
$ | 7.4 | $ | 6.5 | $ | 0.9 | $ | — | |||||||||
Our cash equivalents and deferred compensation assets and liabilities are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The fair value for the guaranteed investment contract is based on quoted market prices for outstanding bonds of the insurance company issuing the contract. The fair values for foreign currency derivatives are based on quoted market prices from various banks for similar instruments. | ||||||||||||||||
The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximate their respective fair values, except for the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(in millions) | ||||||||||||||||
Long-term debt | $ | 165.1 | $ | 307.6 | $ | 185.3 | $ | 261.6 | ||||||||
Notes payable to GST | $ | 259.3 | $ | 277.8 | $ | 248.1 | $ | 268.2 | ||||||||
The fair values for long-term debt are based on quoted market prices, but this would be considered a Level 2 computation because the market is not active. The notes payable to GST computation would be considered Level 2 since it is based on rates available to us for debt with similar terms and maturities. |
Pensions_and_Postretirement_Be
Pensions and Postretirement Benefits | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Pensions and Postretirement Benefits | ' | |||||||||||||||||||||||
14 | Pensions and Postretirement Benefits | |||||||||||||||||||||||
We have several non-contributory defined benefit pension plans covering eligible employees in the United States and several European countries. Salaried employees’ benefit payments are generally determined using a formula that is based on an employee’s compensation and length of service. We closed our defined benefit pension plan for new salaried employees in the United States who joined the Company after January 1, 2006, and effective January 1, 2007, benefits were frozen for all salaried employees who were not age 40 or older as of December 31, 2006. Hourly employees’ benefit payments are generally determined using stated amounts for each year of service. | ||||||||||||||||||||||||
Our employees also participate in voluntary contributory retirement savings plans for salaried and hourly employees maintained by us. Under these plans, eligible employees can receive matching contributions up to the first 6% of their eligible earnings. Effective January 1, 2007, those employees whose defined benefit pension plan benefits were frozen receive an additional 2% company contribution each year. We recorded $7.4 million, $6.3 million and $6.0 million in expenses in 2013, 2012 and 2011, respectively, for matching contributions under these plans. | ||||||||||||||||||||||||
Our general funding policy for qualified defined benefit pension plans is to contribute amounts that are at least sufficient to satisfy regulatory funding standards. During 2013, 2012 and 2011, we contributed $22.5 million, $11.3 million and $5.9 million, respectively, in cash to our U.S. pension plans. In 2011, we also contributed to our U.S. defined benefit pension plans a GIC received in connection with the Crucible Benefits Trust settlement agreement. Refer to Note 19, “Commitments and Contingencies – Crucible Steel Corporation a/k/a Crucible, Inc.” for additional information about the settlement agreement. The GIC was valued at $21.4 million for purposes of the pension plan contribution. We anticipate there will be a required funding of $20.4 million in 2014 to our U.S. defined benefit pension plans. Additionally, we expect to make total contributions of approximately $0.5 million in 2014 to the foreign pension plans. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets were $245.3 million, $235.1 million and $197.6 million at December 31, 2013, and $270.5 million, $257.7 million and $157.4 million at December 31, 2012, respectively. | ||||||||||||||||||||||||
We amortize prior service cost and unrecognized gains and losses using the straight-line basis over the average future service life of active participants. | ||||||||||||||||||||||||
We provide, through non-qualified plans, supplemental pension benefits to a limited number of employees. Certain of our subsidiaries also sponsor unfunded defined benefit postretirement plans that provide certain health-care and life insurance benefits to eligible employees. The health-care plans are contributory, with retiree contributions adjusted periodically, and contain other cost-sharing features, such as deductibles and coinsurance. The life insurance plans are generally noncontributory. The amounts included in “Other Benefits” in the following tables include the non-qualified plans and the other defined benefit postretirement plans discussed above. | ||||||||||||||||||||||||
The following table sets forth the changes in projected benefit obligations and plan assets of our defined benefit pension and other non-qualified and postretirement plans as of and for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Change in Projected Benefit Obligations | ||||||||||||||||||||||||
Projected benefit obligations at beginning of year | $ | 271.3 | $ | 244.1 | $ | 5.4 | $ | 5.3 | ||||||||||||||||
Service cost | 6.3 | 5.7 | 0.4 | 0.3 | ||||||||||||||||||||
Interest cost | 10.6 | 10.5 | 0.2 | 0.2 | ||||||||||||||||||||
Actuarial loss (gain) | (33.0 | ) | 17.9 | (0.9 | ) | 0.4 | ||||||||||||||||||
Benefits paid | (8.3 | ) | (7.1 | ) | (0.4 | ) | (0.8 | ) | ||||||||||||||||
Other | (0.7 | ) | 0.2 | — | — | |||||||||||||||||||
Projected benefit obligations at end of year | 246.2 | 271.3 | 4.7 | 5.4 | ||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 158.3 | 135.4 | ||||||||||||||||||||||
Actual return on plan assets | 26.8 | 19.7 | ||||||||||||||||||||||
Administrative expenses | (1.0 | ) | (1.2 | ) | ||||||||||||||||||||
Benefits paid | (8.3 | ) | (7.1 | ) | ||||||||||||||||||||
Company contributions | 22.8 | 11.5 | ||||||||||||||||||||||
Fair value of plan assets at end of year | 198.6 | 158.3 | ||||||||||||||||||||||
Underfunded Status at End of Year | $ | (47.6 | ) | $ | (113.0 | ) | $ | (4.7 | ) | $ | (5.4 | ) | ||||||||||||
Amounts Recognized in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Current liabilities | $ | (0.2 | ) | $ | (0.3 | ) | $ | (1.8 | ) | $ | (0.4 | ) | ||||||||||||
Long-term liabilities | (47.4 | ) | (112.7 | ) | (2.9 | ) | (5.0 | ) | ||||||||||||||||
$ | (47.6 | ) | $ | (113.0 | ) | $ | (4.7 | ) | $ | (5.4 | ) | |||||||||||||
Pre-tax charges recognized in accumulated other comprehensive income (loss) as of December 31, 2013 and 2012 consist of: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net actuarial loss | $ | 43.6 | $ | 99.5 | $ | 0.1 | $ | 1.1 | ||||||||||||||||
Prior service cost | 1.2 | 1.4 | 0.1 | 0.3 | ||||||||||||||||||||
$ | 44.8 | $ | 100.9 | $ | 0.2 | $ | 1.4 | |||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $236.0 million and $258.6 million at December 31, 2013 and 2012, respectively. | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||||||||
Service cost | $ | 6.3 | $ | 5.7 | $ | 4.8 | $ | 0.4 | $ | 0.4 | $ | 0.7 | ||||||||||||
Interest cost | 10.6 | 10.5 | 10.7 | 0.2 | 0.2 | 0.2 | ||||||||||||||||||
Expected return on plan assets | (13.2 | ) | (11.0 | ) | (9.4 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost | 0.2 | 0.3 | 0.3 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||
Amortization of net loss | 9.4 | 9.8 | 4.7 | — | — | — | ||||||||||||||||||
Settlement | — | — | — | 0.1 | 0.1 | — | ||||||||||||||||||
Deconsolidation of GST | (1.8 | ) | (2.2 | ) | (1.5 | ) | — | — | — | |||||||||||||||
Net periodic benefit cost | 11.5 | 13.1 | 9.6 | 0.8 | 0.8 | 1 | ||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||||||||||||||||||||
Net loss (gain) | (46.5 | ) | 9.3 | 46.2 | (1.0 | ) | 0.4 | 0.3 | ||||||||||||||||
Prior service cost | — | 0.4 | — | — | — | — | ||||||||||||||||||
Amortization of net loss | (9.4 | ) | (9.8 | ) | (4.7 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost | (0.2 | ) | (0.3 | ) | (0.3 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||
Other adjustment | — | 0.8 | — | (0.1 | ) | (0.1 | ) | — | ||||||||||||||||
Total recognized in other comprehensive income | (56.1 | ) | 0.4 | 41.2 | (1.2 | ) | 0.2 | 0.2 | ||||||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | (44.6 | ) | $ | 13.5 | $ | 50.8 | $ | (0.4 | ) | $ | 1 | $ | 1.2 | ||||||||||
The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $2.7 million and $0.1 million, respectively. The estimated prior service cost for the other defined benefit postretirement plans that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $0.1 million. | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 | ||||||||||||||||||||||||
Discount rate | 5 | % | 4 | % | 4.25 | % | 5 | % | 4.25 | % | 4.25 | % | ||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | N/A | 4 | % | 4 | % | |||||||||||||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 | ||||||||||||||||||||||||
Discount rate | 4 | % | 4.25 | % | 5.5 | % | 4 | % | 4.25 | % | 5.5 | % | ||||||||||||
Expected long-term return on plan assets | 8 | % | 8 | % | 8 | % | — | — | — | |||||||||||||||
Rate of compensation increase | 3 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||
The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year. The discount rate was determined using a model, which uses a theoretical portfolio of high quality corporate bonds specifically selected to produce cash flows closely related to how we would settle our retirement obligations. This produced a discount rate of 5.0% at December 31, 2013. As of the date of these financial statements, there are no known or anticipated changes in our discount rate assumption that will impact our pension expense in 2014. A 25 basis point decrease (increase) in our discount rate, holding constant our expected long-term return on plan assets and other assumptions, would increase (decrease) pension expense by approximately $1.0 million per year. | ||||||||||||||||||||||||
The overall expected long-term rate of return on assets was determined based upon weighted-average historical returns over an extended period of time for the asset classes in which the plans invest according to our current investment policy. | ||||||||||||||||||||||||
We use the RP-2000 mortality table projected to 2020 by Scale AA to value our domestic pension liabilities. | ||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates at December 31 | 2013 | 2012 | ||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.2 | % | 7.5 | % | ||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate rate) | 5 | % | 5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2024 | 2024 | ||||||||||||||||||||||
A one percentage point change in the assumed health-care cost trend rate would have an impact of less than $0.1 million on net periodic benefit cost and $0.1 million on benefit obligations. | ||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||
The asset allocation for pension plans at the end of 2013 and 2012, and the target allocation for 2014, by asset category are as follows: | ||||||||||||||||||||||||
Target | Plan Assets at December 31, | |||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Equity securities | 55 | % | 56 | % | 65 | % | ||||||||||||||||||
Fixed income | 45 | % | 44 | % | 35 | % | ||||||||||||||||||
100 | % | 100 | % | 100 | % | |||||||||||||||||||
Our investment goal is to maximize the return on assets, over the long term, by investing in equities and fixed income investments while diversifying investments within each asset class to reduce the impact of losses in individual securities. Equity investments include a mix of U.S. large capitalization equities, U.S. small capitalization equities and non-U.S. equities. Fixed income investments include a mix of treasury obligations and high-quality money market instruments. The asset allocation policy is reviewed and any significant variation from the target asset allocation mix is rebalanced periodically. The plans have no direct investments in our common stock. | ||||||||||||||||||||||||
Other than the guaranteed investment contract, the plans invest exclusively in mutual funds whose holdings are marketable securities traded on recognized markets and, as a result, would be considered Level 1 assets. The guaranteed investment contract would be considered a Level 2 asset whose fair value is based on quoted market prices for outstanding bonds of the insurance company issuing the contract. The investment portfolios of the various funds at December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Mutual funds – U.S. equity | $ | 71.2 | $ | 77 | ||||||||||||||||||||
Fixed income treasury and money market | 64.4 | 31.3 | ||||||||||||||||||||||
Mutual funds – international equity | 39.3 | 26.7 | ||||||||||||||||||||||
Guaranteed investment contract | 23 | 22.7 | ||||||||||||||||||||||
Cash equivalents | 0.7 | 0.6 | ||||||||||||||||||||||
$ | 198.6 | $ | 158.3 | |||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||||||
Pension | Other | |||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
2014 | $ | 9.6 | $ | 1.8 | ||||||||||||||||||||
2015 | 10.1 | 0.2 | ||||||||||||||||||||||
2016 | 11 | 0.2 | ||||||||||||||||||||||
2017 | 12.4 | 0.2 | ||||||||||||||||||||||
2018 | 13.6 | 0.2 | ||||||||||||||||||||||
Years 2019 – 2023 | 80.3 | 2.1 | ||||||||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Loss | ' | |||||||||||||||
15 | Accumulated Other Comprehensive Loss | |||||||||||||||
Changes in accumulated other comprehensive income (loss) by component (after tax) for the year ended December 31, 2013 are as follows: | ||||||||||||||||
Unrealized | Pension and | Gains and | Total | |||||||||||||
Translation | Other | Losses on | ||||||||||||||
Adjustments | Postretirement | Cash Flow | ||||||||||||||
Plans | Hedges | |||||||||||||||
Beginning balance | $ | 41.6 | $ | (64.0 | ) | $ | (0.6 | ) | $ | (23.0 | ) | |||||
Other comprehensive income before reclassifications | 1 | 29.7 | — | 30.7 | ||||||||||||
Amounts reclassified from accumulated other | — | 6.1 | 0.6 | 6.7 | ||||||||||||
comprehensive income (loss) | ||||||||||||||||
Net current-period other comprehensive income | 1 | 35.8 | 0.6 | 37.4 | ||||||||||||
Ending balance | $ | 42.6 | $ | (28.2 | ) | $ | — | $ | 14.4 | |||||||
Reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2013 are as follows: | ||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Statement of Operations Line Item | ||||||||||||||
Amortization of pension and other postretirement plans: | ||||||||||||||||
Actuarial losses | $ | 9.4 | -1 | |||||||||||||
Prior service costs | 0.3 | -1 | ||||||||||||||
Total before tax | 9.7 | |||||||||||||||
Tax benefit | (3.6 | ) | Income tax expense | |||||||||||||
Net of tax | $ | 6.1 | ||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||
Foreign exchange contracts | $ | 1 | Cost of sales | |||||||||||||
Tax benefit | (0.4 | ) | Income tax expense | |||||||||||||
Net of tax | $ | 0.6 | ||||||||||||||
-1 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 14 - "Pensions and Postretirement Benefits" for additional details). |
Equity_Compensation_Plan
Equity Compensation Plan | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||
Equity Compensation Plan | ' | |||||||||||||||||
16 | Equity Compensation Plan | |||||||||||||||||
We have an equity compensation plan (the “Plan”) that provides for the delivery of up to 4.3 million shares pursuant to various market and performance-based incentive awards. As of December 31, 2013, there are 0.5 million shares available for future awards. Our policy is to issue new shares to satisfy share delivery obligations for awards made under the Plan. | ||||||||||||||||||
The Plan allows awards of restricted share units to be granted to executives and other key employees. Generally, all share units will vest in three years. Compensation expense related to the restricted share units is based upon the market price of the underlying common stock as of the date of the grant and is amortized over the applicable restriction period using the straight-line method. As of December 31, 2013, there was $3.7 million of unrecognized compensation cost related to restricted share units expected to be recognized over a weighted-average period of 1.4 years. | ||||||||||||||||||
Under the terms of the Plan, performance share awards were granted to executives and other key employees during 2013, 2012 and 2011. Each grant will vest if we achieve specific financial objectives at the end of a three-year performance period. Additional shares may be awarded if objectives are exceeded, but some or all shares may be forfeited if objectives are not met. Performance shares earned at the end of a performance period, if any, will be paid in actual shares of our common stock, less the number of shares equal in value to applicable withholding taxes if the employee chooses. During the performance period, a grantee receives dividend equivalents accrued (if any) in cash, and shares are forfeited if a grantee terminates employment. Compensation expense related to the performance shares is computed using the market price of the underlying common stock as of the date of the grant and the current achievement level of the specific financial objectives and is recorded using the straight-line method over the applicable performance period. As of December 31, 2013, there was $1.6 million of unrecognized compensation cost related to nonvested performance share awards that is expected to be recognized over a weighted-average period of 1.5 years. | ||||||||||||||||||
Restricted stock, with three or four year restriction periods from the initial grant date were issued in 2013, 2012 and 2011. Compensation expense related to the restricted shares is based upon the market price of the underlying common stock as of the date of the grant and is amortized over the applicable restriction period using the straight-line method. As of December 31, 2013, there was $0.9 million of unrecognized compensation cost related to restricted stock that is expected to be recognized over a weighted-average period of 2.2 years. | ||||||||||||||||||
A summary of award activity under these plans is as follows: | ||||||||||||||||||
Restricted Share Units | Performance Shares | Restricted Stock | ||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||
Average | Average | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||
Nonvested at December 31, 2010 | 317,605 | 18.91 | 302,068 | 24.1 | 137,103 | 32.35 | ||||||||||||
Granted | 67,454 | 42.07 | 93,488 | 42.3 | 3,750 | 39.25 | ||||||||||||
Vested | — | — | — | — | (97,436 | ) | 31.84 | |||||||||||
Forfeited | (13,946 | ) | 25.04 | (15,408 | ) | 25.03 | — | — | ||||||||||
Shares settled for cash | (2,263 | ) | 39.56 | — | — | — | — | |||||||||||
Nonvested at December 31, 2011 | 368,850 | 23.24 | 380,148 | 28.54 | 43,417 | 34.69 | ||||||||||||
Granted | 83,841 | 37.65 | 137,382 | 37.65 | 15,000 | 41.47 | ||||||||||||
Vested | (98,834 | ) | 18.8 | (275,336 | ) | 24.1 | (17,833 | ) | 34.55 | |||||||||
Forfeited | (19,127 | ) | 31.65 | (22,992 | ) | 31.48 | — | — | ||||||||||
Shares settled for cash | (32,243 | ) | 41.88 | — | — | — | — | |||||||||||
Nonvested at December 31, 2012 | 302,487 | 29.43 | 219,202 | 39.52 | 40,584 | 37.27 | ||||||||||||
Granted | 99,174 | 44.97 | 169,872 | 44.63 | 11,330 | 55.09 | ||||||||||||
Vested | (141,985 | ) | 20.93 | (70,381 | ) | 42.3 | (21,834 | ) | 34.04 | |||||||||
Forfeited | (24,651 | ) | 41.24 | (40,930 | ) | 41.38 | — | — | ||||||||||
Achievement level adjustment | — | — | (10,985 | ) | 37.65 | — | — | |||||||||||
Shares settled for cash | (18,709 | ) | 47.13 | — | — | — | — | |||||||||||
Nonvested at December 31, 2013 | 216,316 | 41.77 | 266,778 | 41.62 | 30,080 | 46.32 | ||||||||||||
The number of performance share awards shown in the table above represents the expected number that will be issued. | ||||||||||||||||||
Non-qualified and incentive stock options were granted in 2011 and 2008. No stock option has a term exceeding 10 years from the date of grant. All stock options were granted at not less than 100% of fair market value (as defined) on the date of grant. As of December 31, 2013, there was $0.2 million of unrecognized compensation cost related to nonvested stock options. | ||||||||||||||||||
The following table provides certain information with respect to stock options as of December 31, 2013: | ||||||||||||||||||
Range of Exercise Price | Stock Options | Stock Options | Weighted | Weighted | ||||||||||||||
Outstanding | Exercisable | Average | Average | |||||||||||||||
Exercise Price | Remaining | |||||||||||||||||
Contractual Life | ||||||||||||||||||
Under $40.00 | 100,000 | 100,000 | $ | 34.55 | 4.28 | |||||||||||||
Over $40.00 | 25,288 | — | $ | 42.24 | 7.12 | |||||||||||||
Total | 125,288 | 100,000 | $ | 36.1 | 4.85 | |||||||||||||
A summary of option activity under the Plan as of December 31, 2013, and changes during the year then ended, is presented below: | ||||||||||||||||||
Share | Weighted | |||||||||||||||||
Options | Average | |||||||||||||||||
Outstanding | Exercise | |||||||||||||||||
Price | ||||||||||||||||||
Balance at December 31, 2012 | 125,288 | $ | 36.1 | |||||||||||||||
Exercised | — | — | ||||||||||||||||
Balance at December 31, 2013 | 125,288 | $ | 36.1 | |||||||||||||||
The year-end intrinsic value related to stock options is presented below: | ||||||||||||||||||
As of and for the Years Ended December 31, | ||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||||||
Options outstanding | $ | 2.7 | $ | 0.6 | $ | 0.8 | ||||||||||||
Options exercisable | $ | 2.3 | $ | 0.6 | $ | 0.8 | ||||||||||||
Options exercised | $ | — | $ | 1.2 | $ | 2.1 | ||||||||||||
Consideration received from option exercises under the Plan for the years ended December 31, 2013, 2012 and 2011 was $0.0 million, $0.2 million and $0.5 million, respectively. The tax benefit realized for the tax deductions from option exercises totaled $0.0 million, $1.5 million and $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||||
We recognized the following equity-based employee compensation expenses and benefits related to our Plan activity: | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||||||
Compensation expense | $ | 6 | $ | 7.3 | $ | 6.6 | ||||||||||||
Related income tax benefit | $ | 2.2 | $ | 2.7 | $ | 2.5 | ||||||||||||
Each non-employee director receives an annual grant of phantom shares equal in value to $75,000. We will pay each non-employee director in cash the fair market value of certain of the director’s phantom shares granted, upon termination of service as a member of the board of directors. The remaining phantom shares granted will be paid out in the form of one share of our common stock for each phantom share, with the value of any fractional phantom shares paid in cash. Expense recognized in the years ended December 31, 2013, 2012 and 2011 related to these phantom share grants was $1.3 million, $0.9 million and $0.0 million, respectively. Cash payments of $0.4 million, $0.3 million and $0.6 million were used to settle phantom shares during 2013, 2012 and 2011, respectively. |
Business_Segment_Information
Business Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Business Segment Information | ' | |||||||||||
17 | Business Segment Information | |||||||||||
We have three reportable segments. Our Sealing Products segment designs, manufactures and sells sealing products, including: metallic, non-metallic and composite material gaskets, dynamic seals, compression packing, resilient metal seals, elastomeric seals, hydraulic components, expansion joints, heavy-duty truck wheel-end component systems including brake products, flange sealing and isolation products, pipeline casing spacers/isolators, casing end seals, modular sealing systems for sealing pipeline penetrations, hole forming products, manhole infiltration sealing systems, safety-related signage for pipelines, bellows and bellows assemblies, pedestals for semiconductor manufacturing, PTFE products, conveyor belting and sheeted rubber products. | ||||||||||||
Our Engineered Products segment includes operations that design, manufacture and sell self-lubricating, non-rolling metal-polymer, solid polymer and filament wound bearing products, aluminum blocks for hydraulic applications, precision engineered components, and lubrication systems for reciprocating compressors and provides repair services for those compressors. | ||||||||||||
Our Engine Products and Services segment designs, manufactures, sells and services heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines. | ||||||||||||
Our reportable segments are managed separately based on differences in their products and services and their end-customers. Segment profit is total segment revenue reduced by operating expenses, restructuring and other costs identifiable with the segment. Corporate expenses include general corporate administrative costs. Expenses not directly attributable to the segments, corporate expenses, net interest expense, gains and losses related to the sale of assets, and income taxes are not included in the computation of segment profit. The accounting policies of the reportable segments are the same as those for EnPro. | ||||||||||||
Segment operating results and other financial data for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Sales | ||||||||||||
Sealing Products | $ | 622.9 | $ | 609.1 | $ | 534.9 | ||||||
Engineered Products | 356.4 | 363 | 386.7 | |||||||||
Engine Products and Services | 167.6 | 214.6 | 185.8 | |||||||||
1,146.90 | 1,186.70 | 1,107.40 | ||||||||||
Intersegment sales | (2.7 | ) | (2.5 | ) | (1.9 | ) | ||||||
Total sales | $ | 1,144.20 | $ | 1,184.20 | $ | 1,105.50 | ||||||
Segment Profit | ||||||||||||
Sealing Products | $ | 97.1 | $ | 88.8 | $ | 81.2 | ||||||
Engineered Products | 17.6 | 20.5 | 29.2 | |||||||||
Engine Products and Services | 14 | 39.2 | 30.6 | |||||||||
Total segment profit | 128.7 | 148.5 | 141 | |||||||||
Corporate expenses | (33.3 | ) | (32.3 | ) | (32.6 | ) | ||||||
Interest expense, net | (44.3 | ) | (42.8 | ) | (39.6 | ) | ||||||
Other expense, net | (15.3 | ) | (9.9 | ) | (3.8 | ) | ||||||
Income before income taxes | $ | 35.8 | $ | 63.5 | $ | 65 | ||||||
No customer accounted for 10% or more of net sales in 2013, 2012 or 2011. | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Capital Expenditures | ||||||||||||
Sealing Products | $ | 14.3 | $ | 9.7 | $ | 10.9 | ||||||
Engineered Products | 14 | 20.9 | 11.9 | |||||||||
Engine Products and Services | 2.4 | 4.9 | 8.4 | |||||||||
Corporate | — | 0.1 | 0.3 | |||||||||
Total capital expenditures | $ | 30.7 | $ | 35.6 | $ | 31.5 | ||||||
Depreciation and Amortization Expense | ||||||||||||
Sealing Products | $ | 30.4 | $ | 30.3 | $ | 22.9 | ||||||
Engineered Products | 22.4 | 21.8 | 21.5 | |||||||||
Engine Products and Services | 3.6 | 3.1 | 3.6 | |||||||||
Corporate | 0.2 | 0.3 | 0.4 | |||||||||
Total depreciation and amortization | $ | 56.6 | $ | 55.5 | $ | 48.4 | ||||||
Net Sales by Geographic Area | ||||||||||||
United States | $ | 620.3 | $ | 654.2 | $ | 561.3 | ||||||
Europe | 308.6 | 305 | 321.4 | |||||||||
Other foreign | 215.3 | 225 | 222.8 | |||||||||
Total | $ | 1,144.20 | $ | 1,184.20 | $ | 1,105.50 | ||||||
Net sales are attributed to countries based on location of the customer. | ||||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Sealing Products | $ | 534.4 | $ | 528.8 | ||||||||
Engineered Products | 329.8 | 318.5 | ||||||||||
Engine Products and Services | 131.3 | 121.8 | ||||||||||
Corporate | 397.2 | 401.8 | ||||||||||
$ | 1,392.70 | $ | 1,370.90 | |||||||||
Long-Lived Assets | ||||||||||||
United States | $ | 110.1 | $ | 114.1 | ||||||||
France | 30.5 | 23.4 | ||||||||||
Other Europe | 34.3 | 34.7 | ||||||||||
Other foreign | 12.6 | 13.3 | ||||||||||
Total | $ | 187.5 | $ | 185.5 | ||||||||
Corporate assets include all of our cash and cash equivalents, investment in GST, and long-term deferred income taxes. Long-lived assets consist of property, plant and equipment. |
Garlock_Sealing_Technologies_L
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Reorganizations [Abstract] | ' | |||||||||||
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. | ' | |||||||||||
18 | Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. | |||||||||||
On the Petition Date, GST LLC, Anchor and Garrison filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court. The filings were the initial step in a claims resolution process, which is ongoing. The goal of the process is an efficient and permanent resolution of all current and future asbestos claims through court approval of a plan of reorganization, which typically would establish a trust to which all asbestos claims would be channeled for resolution. GST seeks an agreement with asbestos claimants and other creditors on the terms of a plan for the establishment of such a trust and repayment of other creditors in full, or in the absence of such an agreement, an order of the Bankruptcy Court confirming such a plan. | ||||||||||||
In November 2011, GST filed a proposed plan of reorganization with the Bankruptcy Court. The proposed plan calls for a trust to be formed, to which GST and affiliates would contribute $200 million and which would be the exclusive remedy for future asbestos personal injury claimants – those whose claims arise after confirmation of the plan. The proposed plan provides that each present asbestos personal injury claim, i.e., any pending claim or one that arises between the Petition Date and plan confirmation, will be assumed by reorganized GST and resolved either by settlement (pursuant to a matrix contained in the proposed plan or as otherwise agreed), or by payment in full of any final judgment entered after trial in federal court. Based on a preliminary estimate provided by Bates White, the estimation expert retained by counsel to GST prior to the time that GST filed its proposed plan, GST estimates that the indemnity costs to resolve all present claims pursuant to the settlement matrix in the plan would cost the reorganized GST approximately $70 million. Under the proposed plan, all non-asbestos claimants would be paid the full value of their claims. | ||||||||||||
GST’s proposed plan is opposed by the Official Committee of Asbestos Personal Injury Claimants (the “Claimants’ Committee”) and Future Claimants’ Representative (the “FCR”) and is unlikely to be approved in its current form. | ||||||||||||
On April 13, 2012, the Bankruptcy Court granted a motion by GST for the Bankruptcy Court to estimate the allowed amount of present and future asbestos claims against GST for mesothelioma, a rare cancer attributed to asbestos exposure, for purposes of determining the feasibility of a potential proposed plan of reorganization. The estimation trial commenced on July 22, 2013 and concluded on August 22, 2013. | ||||||||||||
On January 10, 2014, Bankruptcy Judge George Hodges announced his estimation decision in a 65-page order. Citing with approval the methodology put forth by GST at trial, the judge determined that $125 million is the amount sufficient to satisfy GST’s liability for present and future mesothelioma claims. Judge Hodges adopted GST’s “legal liability” approach to estimation, focused on the merits of claims, and rejected asbestos claimant representatives’ approach, which focused solely on GST’s historical settlement history. The judge’s liability determination is for mesothelioma claims only. The court has not yet determined amounts for GST’s liability for other asbestos claims and for administrative costs that would be required to review and process claims and payments, which will add to the amount. | ||||||||||||
In his opinion, Judge Hodges writes, “The best evidence of Garlock’s aggregate responsibility is the projection of its legal liability that takes into consideration causation, limited exposure and the contribution of exposures to other products.” | ||||||||||||
The decision validates the positions that GST has been asserting for the more than three years it has been in this process. Following are several important findings in the opinion: | ||||||||||||
• | Garlock’s products resulted in a relatively low exposure to asbestos to a limited population, and its legal responsibility for causing mesothelioma is relatively de minimis. | |||||||||||
• | Chrysotile, the asbestos fiber type used in almost all of Garlock’s asbestos products, is far less toxic than other forms of asbestos. The court found reliable and persuasive Garlock’s expert epidemiologist, who testified that there is no statistically significant association between low dose chrysotile exposure and mesothelioma. | |||||||||||
• | The population that was exposed to Garlock’s products was necessarily exposed to far greater quantities of higher potency asbestos from the products of others. | |||||||||||
• | The estimates of Garlock’s aggregate liability that are based on its historic settlement values are not reliable because those values are infected with the impropriety of some law firms and inflated by the cost of defense. | |||||||||||
GST plans to incorporate the court’s ruling into a plan of reorganization that it will submit in place of the plan referenced above. GST has not yet determined the amount that it will propose be included in its revised plan, as it continues to hope that it can reach a consensual resolution with representatives of current and future claimants. GST has stated that it continues to be willing to engage in discussions with claimant representatives, recognizing that an agreed settlement would provide the best path to certainty and finality through section 524(g) of the Bankruptcy Code, provide for faster and more efficient completion of the case, save significant future costs, and allow for the attainment of complete finality. | ||||||||||||
We caution that, in the absence of a consensual deal, the GST asbestos claims resolution process remains uncertain and could take an undetermined time to complete. | ||||||||||||
That estimation decision does not end the case; there are many potential hurdles, including appeals, that may arise prior to plan confirmation. | ||||||||||||
Financial Results | ||||||||||||
Condensed combined financial information for GST is set forth below, presented on a historical cost basis. | ||||||||||||
GST | ||||||||||||
(Debtor-in-Possession) | ||||||||||||
Condensed Combined Statements of Operations | ||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||
(in millions) | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | $ | 244.8 | $ | 240.1 | $ | 236.1 | ||||||
Cost of sales | 145.3 | 145.3 | 144.7 | |||||||||
Gross profit | 99.5 | 94.8 | 91.4 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative | 41.7 | 45.1 | 45.4 | |||||||||
Asbestos-related | 2.3 | (1.6 | ) | 2.7 | ||||||||
Other | 0.5 | 1.7 | 0.8 | |||||||||
Total operating expenses | 44.5 | 45.2 | 48.9 | |||||||||
Operating income | 55 | 49.6 | 42.5 | |||||||||
Interest income, net | 29.7 | 27.9 | 26.8 | |||||||||
Income before reorganization expenses and income taxes | 84.7 | 77.5 | 69.3 | |||||||||
Reorganization expenses | (44.6 | ) | (31.4 | ) | (17.0 | ) | ||||||
Income before income taxes | 40.1 | 46.1 | 52.3 | |||||||||
Income tax expense | (18.7 | ) | (16.3 | ) | (19.6 | ) | ||||||
Net income | $ | 21.4 | $ | 29.8 | $ | 32.7 | ||||||
Comprehensive income | $ | 20.8 | $ | 30.4 | $ | 31.6 | ||||||
GST | ||||||||||||
(Debtor-in-Possession) | ||||||||||||
Condensed Combined Statements of Cash Flows | ||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||
(in millions) | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net cash flows from operating activities | $ | 48.2 | $ | 31.9 | $ | 44.2 | ||||||
Investing activities | ||||||||||||
Purchases of property, plant and equipment | (8.7 | ) | (6.9 | ) | (3.3 | ) | ||||||
Net receipts (payments) from loans to affiliates | (12.8 | ) | 0.5 | 13.1 | ||||||||
Net purchases of held-to-maturity securities | (25.0 | ) | (110.0 | ) | — | |||||||
Receipts from (deposits into) restricted cash accounts | 0.9 | 1.4 | (6.5 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (7.5 | ) | ||||||||
Other | (1.1 | ) | — | — | ||||||||
Net cash used in investing activities | (46.7 | ) | (115.0 | ) | (4.2 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2.3 | ) | 0.4 | (0.8 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (0.8 | ) | (82.7 | ) | 39.2 | |||||||
Cash and cash equivalents at beginning of year | 43.6 | 126.3 | 87.1 | |||||||||
Cash and cash equivalents at end of year | $ | 42.8 | $ | 43.6 | $ | 126.3 | ||||||
GST | ||||||||||||
(Debtor-in-Possession) | ||||||||||||
Condensed Combined Balance Sheets | ||||||||||||
As of December 31, 2013 and 2012 | ||||||||||||
(in millions) | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Current assets | $ | 314.4 | $ | 168.2 | ||||||||
U.S. Treasury securities | — | 110 | ||||||||||
Asbestos insurance receivable | 101.1 | 120.7 | ||||||||||
Deferred income taxes | 130.4 | 124.8 | ||||||||||
Notes receivable from affiliate | 248.1 | 237.4 | ||||||||||
Other assets | 76.2 | 74.3 | ||||||||||
Total assets | $ | 870.2 | $ | 835.4 | ||||||||
Liabilities and Shareholder’s Equity: | ||||||||||||
Current liabilities | $ | 43.9 | $ | 76.9 | ||||||||
Other liabilities | 58.1 | 10.8 | ||||||||||
Liabilities subject to compromise (A) | 468.4 | 468.4 | ||||||||||
Total liabilities | 570.4 | 556.1 | ||||||||||
Shareholder’s equity | 299.8 | 279.3 | ||||||||||
Total liabilities and shareholder’s equity | $ | 870.2 | $ | 835.4 | ||||||||
(A) | Liabilities subject to compromise include pre-petition unsecured claims which may be resolved at amounts different from those recorded in the condensed combined balance sheets. Liabilities subject to compromise consist principally of asbestos-related claims. GST has undertaken to project the number and ultimate cost of all present and future bodily injury claims expected to be asserted, based on actuarial principles, and to measure probable and estimable liabilities under generally accepted accounting principles. GST has accrued $466.8 million as of December 31, 2013. The estimate indicated for those asbestos-related claims reflects the point in a wide range of possible outcomes determined based on historical facts and circumstances prior to the Petition Date as our estimate of the cost to resolve asbestos-related personal injury cases and claims against GST as they would have been resolved in the state courts or by settlements over a ten-year period from April 1, 2010 through March 31, 2020. GST adjusts this estimate to reflect payments of previously accrued but unpaid legal fees and to reflect the results of appeals. Otherwise, GST does not expect to adjust the estimate unless developments in the Chapter 11 proceeding provide a reasonable basis for a revised estimate. GST intends to use the claims resolution process in Chapter 11 to determine the validity and ultimate amount of its aggregate liability for asbestos-related claims. Due to the uncertainties of asbestos-related litigation and the Chapter 11 process, GST’s ultimate liability could differ materially from the recorded liability. See Note 19, “Commitments and Contingencies – Asbestos.” |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments and Contingencies | ' | |||||||
19 | Commitments and Contingencies | |||||||
General | ||||||||
A description of environmental, asbestos and other legal matters relating to certain of our subsidiaries is included in this section. In addition to the matters noted herein, we are from time to time subject to, and are presently involved in, other litigation and legal proceedings arising in the ordinary course of business. We believe the outcome of such other litigation and legal proceedings will not have a material adverse effect on our financial condition, results of operations and cash flows. Expenses for administrative and legal proceedings are recorded when incurred. | ||||||||
Environmental | ||||||||
Our facilities and operations are subject to federal, state and local environmental and occupational health and safety requirements of the U.S. and foreign countries. We take a proactive approach in our efforts to comply with environmental, health and safety laws as they relate to our manufacturing operations and in proposing and implementing any remedial plans that may be necessary. We also regularly conduct comprehensive environmental, health and safety audits at our facilities to maintain compliance and improve operational efficiency. | ||||||||
Although we believe past operations were in substantial compliance with the then applicable regulations, we or one or more of our subsidiaries is involved with various remediation activities at 15 sites where the future cost per site for us or our subsidiary is expected to exceed $100 thousand. Investigations have been completed for 11 sites and are in progress at the other four sites. The majority of these sites relate to remediation projects at former operating facilities that were sold or closed and primarily deal with soil and groundwater contamination. | ||||||||
Our policy is to accrue environmental investigation and remediation costs when it is probable that a liability has been incurred and the amount can be reasonably estimated. The measurement of the liability is based on an evaluation of currently available facts with respect to each individual situation and takes into consideration factors such as existing technology, presently enacted laws and regulations and prior experience in remediation of contaminated sites. Liabilities are established for all sites based on these factors. As assessments and remediation progress at individual sites, these liabilities are reviewed periodically and adjusted to reflect additional technical data and legal information. As of December 31, 2013 and 2012, we had accrued liabilities of $15.1 million and $11.3 million, respectively, for estimated future expenditures relating to environmental contingencies. These amounts have been recorded on an undiscounted basis in the Consolidated Balance Sheets. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other parties potentially being liable, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. | ||||||||
During 2013, we accrued a liability of $6.3 million related to environmental remediation costs associated with the pre-1983 site ownership and operation of the former Trent Tube facility in East Troy, Wisconsin. This amount is included in other income (expense) on the accompanying Consolidated Statements of Operations. The Trent Tube facility was operated by Crucible Materials Corporation from 1983 until its closure in 1998. Crucible Materials Corporation commenced environmental remediation activities at the site in 1999. In connection with the bankruptcy of Crucible Materials Corporation, a trust was established to fund the remediation of the site. We have reviewed the trust's assets and have valued them at $750,000 for our internal purposes. During 2013, the Wisconsin Department of Natural Resources first notified us of potential liability for remediation of the site as a potentially responsible party under Wisconsin's "Spill Act" which provides that potentially responsible parties may be jointly and severally liable for site remediation. Based on our evaluation of the site, we believe our estimated costs to remediate the site will range between $7 million and $10 million, reduced by the value of the trust's remaining assets. | ||||||||
We believe that our accruals for specific environmental liabilities are adequate for those liabilities based on currently available information. Actual costs to be incurred in future periods may vary from estimates because of the inherent uncertainties in evaluating environmental exposures due to unknown and changing conditions, changing government regulations and legal standards regarding liability. In addition, based on our prior ownership of Crucible Steel Corporation a/k/a Crucible, Inc. (“Crucible”), we may have additional contingent liabilities in one or more significant environmental matters, some of which are included in the 15 sites referred to above. Except with respect to specific Crucible environmental matters for which we have accrued a portion of the liability set forth above, we are unable to estimate a reasonably possible range of loss related to these contingent liabilities. | ||||||||
See the section entitled “Crucible Steel Corporation a/k/a Crucible, Inc.” in this footnote for additional information. | ||||||||
Colt Firearms and Central Moloney | ||||||||
We may have contingent liabilities related to divested businesses for which certain of our subsidiaries retained liability or are obligated under indemnity agreements. These contingent liabilities include, but are not limited to, potential product liability and associated claims related to firearms manufactured prior to March 1990 by Colt Firearms, a former operation of Coltec, and for electrical transformers manufactured prior to May 1994 by Central Moloney, another former Coltec operation. We believe that these potential contingent liabilities are not material to our financial condition, results of operation and cash flows. Coltec also has ongoing obligations, which are included in other liabilities in our Consolidated Balance Sheets, with regard to workers’ compensation, retiree medical and other retiree benefit matters that relate to Coltec’s periods of ownership of these operations. | ||||||||
Crucible Steel Corporation a/k/a Crucible, Inc. | ||||||||
Crucible, which was engaged primarily in the manufacture and distribution of high technology specialty metal products, was a wholly owned subsidiary of Coltec until 1983 when its assets and liabilities were distributed to a new Coltec subsidiary, Crucible Materials Corporation. Coltec sold a majority of the outstanding shares of Crucible Materials Corporation in 1985 and divested its remaining minority interest in 2004. Crucible Materials Corporation filed for Chapter 11 bankruptcy protection in May 2009. | ||||||||
In conjunction with the closure of a Crucible plant in the early 1980s, Coltec was required to fund a trust for retiree medical benefits for certain employees at the plant. This trust (the “Benefits Trust”) pays for these retiree medical benefits on an ongoing basis. Coltec has no ownership interest in the Benefits Trust, and thus the assets and liabilities of this trust are not included in our Consolidated Balance Sheets. Under the terms of the Benefits Trust agreement, the trustees retained an actuary to assess the adequacy of the assets in the Benefits Trust in 1995 and 2005. A third and final actuarial report will be required in 2015. The actuarial reports in 1995 and 2005 determined that the Benefits Trust has sufficient assets to fund the payment of future benefits. | ||||||||
Concurrent with the establishment of the Benefits Trust, Coltec was required to establish and make a contribution to a second trust (the “Back-Up Trust”) to provide protection against the inability of the Benefits Trust to meet its obligations. On July 27, 2010, we received court approval of a settlement agreement with the trustees of the Benefits Trust and, as a result, were no longer obligated to maintain the Back-Up Trust. The sole asset of the Back-Up Trust, a guaranteed investment contract (“GIC”), was divided into two parts and distributed in accordance with the agreement. We received one GIC with a contract value of approximately $18 million, and another GIC with a contract value of $2.3 million. In addition, we contributed $0.9 million directly to the Benefits Trust. The $2.3 million GIC is being held in a special account in case of a shortfall in the Benefits Trust and has a current value of $2.8 million. The GIC, with a contract value of approximately $18 million and a fair value of $21.4 million, was contributed to our U.S. defined benefit pension plans in July 2011. The difference of $2.9 million between the contract value and fair value of the GIC was reported as other non-operating income in our Consolidated Statements of Operations. Refer to Note 14, “Pensions and Postretirement Benefits” for additional information about the contribution. | ||||||||
We have certain ongoing obligations, which are included in other liabilities in our Consolidated Balance Sheets, including workers’ compensation, retiree medical and other retiree benefit matters, in addition to those mentioned previously related to Coltec’s period of ownership of Crucible. Based on Coltec’s prior ownership of Crucible, we may have certain additional contingent liabilities, including liabilities in one or more significant environmental matters included in the matters discussed in “Environmental,” above. We are investigating these matters. Except with respect to those matters for which we have an accrued liability as discussed in “Environmental” above, we are unable to estimate a reasonably possible range of loss related to these contingent liabilities. | ||||||||
Warranties | ||||||||
We provide warranties on many of our products. The specific terms and conditions of these warranties vary depending on the product and the market in which the product is sold. We record a liability based upon estimates of the costs we may incur under our warranties after a review of historical warranty experience and information about specific warranty claims. Adjustments are made to the liability as claims data and historical experience warrant. | ||||||||
Changes in the carrying amount of the product warranty liability for the years ended December 31, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Balance at beginning of year | $ | 4.1 | $ | 3.5 | ||||
Charges to expense | 3.8 | 3.2 | ||||||
Settlements made (primarily payments) | (4.1 | ) | (2.6 | ) | ||||
Balance at end of year | $ | 3.8 | $ | 4.1 | ||||
BorgWarner | ||||||||
A subsidiary of BorgWarner Inc. ("BorgWarner") has asserted claims against GGB France E.U.R.L. ("GGB France") with respect to certain bearings supplied by GGB France to BorgWarner and used by BorgWarner in manufacturing hydraulic control units included in motor vehicle automatic transmission units. BorgWarner and GGB France are participating in a technical review before a panel of experts to determine, among other things, whether there were any defects in the bearings and whether any defect caused the damages claimed by BorgWarner, which technical review is a required predicate to the commencement of a legal proceeding for damages. There is no fixed deadline for the completion of the technical review and the presentation of the expert panel's findings. We believe that GGB France has valid factual and legal defenses to these claims and we are vigorously defending these claims. At this point in the technical review process we are unable to estimate a reasonably possible range of loss related to these claims. | ||||||||
Asbestos | ||||||||
Background on Asbestos-Related Litigation. The historical business operations of GST LLC and Anchor resulted in a substantial volume of asbestos litigation in which plaintiffs alleged personal injury or death as a result of exposure to asbestos fibers in products produced or sold by GST LLC or Anchor, together with products produced and sold by numerous other companies. GST LLC and Anchor manufactured and/or sold industrial sealing products that contained encapsulated asbestos fibers. Other of our subsidiaries that manufactured or sold equipment that may have at various times in the past contained asbestos-containing components have also been named in a number of asbestos lawsuits, but only GST LLC and Anchor have ever paid an asbestos claim. | ||||||||
Since the first asbestos-related lawsuits were filed against GST LLC in 1975, GST LLC and Anchor have processed more than 900,000 claims to conclusion, and, together with insurers, have paid over $1.4 billion in settlements and judgments and over $400 million in fees and expenses. Our subsidiaries’ exposure to asbestos litigation and their relationships with insurance carriers have been managed through Garrison. | ||||||||
Subsidiary Chapter 11 Filing and Effect. On the Petition Date, GST LLC, Garrison and Anchor filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the Bankruptcy Court. The filings were the initial step in a claims resolution process, which is ongoing. See Note 18 for additional information about this process and its impact on us. | ||||||||
During the pendency of the Chapter 11 proceedings, certain actions proposed to be taken by GST not in the ordinary course of business are subject to approval by the Bankruptcy Court. As a result, during the pendency of these proceedings, we do not have exclusive control over these companies. Accordingly, as required by GAAP, GST was deconsolidated beginning on the Petition Date. | ||||||||
As a result of the initiation of the Chapter 11 proceedings, the resolution of asbestos claims is subject to the jurisdiction of the Bankruptcy Court. The filing of the Chapter 11 cases automatically stayed the prosecution of pending asbestos bodily injury and wrongful death lawsuits, and initiation of new such lawsuits, against GST. Further, the Bankruptcy Court issued an order enjoining plaintiffs from bringing or further prosecuting asbestos products liability actions against affiliates of GST, including EnPro, Coltec and all their subsidiaries, during the pendency of the Chapter 11 proceedings, subject to further order. As a result, the numbers of new claims filed against our subsidiaries and, except as a result of the resolution of appeals from verdicts rendered prior to the Petition Date, the numbers of claims pending against them have not changed since the Petition Date, and those numbers continue to be as reported in our 2009 Form 10-K and our quarterly reports for the first and second quarters of 2010. | ||||||||
Pending Claims. On the Petition Date, according to Garrison's claim records, there were more than 90,000 total claims pending against GST LLC, of which approximately 5,800 were claims alleging the disease mesothelioma. Based on discovery in the Chapter 11 proceedings, GST has learned that more than 1,900 of those mesothelioma claims records were not, in fact, pending mesothelioma claims. Garrison now believes that there were less than 4,000 mesothelioma claims pending against it as of the Petition Date. Mesothelioma is a rare cancer of the protective lining of many of the body’s internal organs, principally the lungs. The primary cause of mesothelioma is believed to be exposure to asbestos. As a result of asbestos tort reform during the 2000s, most active asbestos-related lawsuits, and a large majority of the amount of payments made by our subsidiaries in the years immediately preceding the Petition Date, have been of claims alleging mesothelioma. In total, GST LLC has paid $563.2 million to resolve a total of 15,300 mesothelioma claims, and another 5,700 mesothelioma claims have been dismissed without payment. | ||||||||
In order to estimate the allowed amount for mesothelioma claims against GST, the Bankruptcy Court approved a process whereby all current GST LLC mesothelioma claimants were required to respond to a questionnaire about their claims. Questionnaires were distributed to the mesothelioma claimants identified in Garrison’s claims database. Many of the 5,800 claimants (over 500) did not respond to the questionnaire at all; many others (more than 1,900) reflect claims where the claimants do not have mesothelioma, have acknowledged that they cannot establish exposure to GST products, their claims were dismissed, settled or withdrawn, their claims were duplicates of other filed claims, or were closed or inactive. Still others responded to the questionnaire but their responses were deficient in some material respect. As a result of this process, less than 3,300 claimants have presented questionnaires asserting mesothelioma claims against GST LLC as of the Petition Date and many of them have not established exposure to GST products or have claims that are otherwise deficient. | ||||||||
Since the Petition Date, many asbestos-related lawsuits have been filed by claimants against other companies in state and federal courts, and many of those claimants might also have included GST LLC as a defendant but for the bankruptcy injunction. Many of those claimants likely will make claims against GST in the bankruptcy proceeding. | ||||||||
Product Defenses. We believe that the asbestos-containing products manufactured or sold by GST could not have been a substantial contributing cause of any asbestos-related disease. The asbestos in the products was encapsulated, which means the asbestos fibers incorporated into the products during the manufacturing process were sealed in binders. The products were also nonfriable, which means they could not be crumbled by hand pressure. The U.S. Occupational Safety and Health Administration, which began generally requiring warnings on asbestos-containing products in 1972, has never required that a warning be placed on products such as GST LLC’s gaskets. Even though no warning label was required, GST LLC included one on all of its asbestos-containing products beginning in 1978. Further, gaskets such as those previously manufactured and sold by GST LLC are one of the few asbestos-containing products still permitted to be manufactured under regulations of the U.S. Environmental Protection Agency. Nevertheless, GST LLC discontinued all manufacture and distribution of asbestos-containing products in the U.S. during 2000 and worldwide in mid-2001. | ||||||||
Appeals. GST LLC has a record of success in trials of asbestos cases, especially before the bankruptcies of many of the historically significant asbestos defendants that manufactured raw asbestos, asbestos insulation, refractory products or other dangerous friable asbestos products. However, it has on occasion lost jury verdicts at trial. GST has consistently appealed when it has received an adverse verdict and has had success in a majority of those appeals. We believe that GST LLC will continue to be successful in the appellate process, although there can be no assurance of success in any particular appeal. At December 31, 2013, three GST LLC appeals are pending from adverse decisions totaling $2.4 million. | ||||||||
GST LLC won reversals of adverse verdicts in one of two recent appellate decisions. In September 2011, the United States Court of Appeals for the Sixth Circuit overturned a $500 thousand verdict against GST LLC that was handed down in 2009 by a Kentucky federal court jury. The federal appellate court found that GST LLC’s motion for judgment as a matter of law should have been granted because the evidence was not sufficient to support a determination of liability. The Sixth Circuit’s chief judge wrote that, “On the basis of this record, saying that exposure to Garlock gaskets was a substantial cause of [claimant’s] mesothelioma would be akin to saying that one who pours a bucket of water into the ocean has substantially contributed to the ocean’s volume.” In May 2011, a three-judge panel of the Kentucky Court of Appeals upheld GST LLC’s $700 thousand share of a jury verdict, which included punitive damages, in a lung cancer case against GST LLC in Kentucky state court. This verdict, which was secured by a bond pending the appeal, was paid in June 2012. | ||||||||
Insurance Coverage. At December 31, 2013, we had $121.1 million of insurance coverage we believe is available to cover current and future asbestos claims payments and certain expense payments. GST has collected insurance payments totaling $74.0 million since the Petition Date. Of the $121.1 million of available insurance coverage remaining, we consider $120.0 million (99%) to be of high quality because the insurance policies are written or guaranteed by U.S.-based carriers whose credit rating by S&P is investment grade (BBB-) or better, and whose AM Best rating is excellent (A-) or better. We consider $1.1 million (1%) to be of moderate quality because the insurance policies are written with various London market carriers. Of the $121.1 million, $85.1 million is allocated to claims that were paid by GST LLC prior to the initiation of the Chapter 11 proceedings and submitted to insurance companies for reimbursement, and the remainder is allocated to pending and estimated future claims. There are specific agreements in place with carriers covering $86.2 million of the remaining available coverage. Based on those agreements and the terms of the policies in place and prior decisions concerning coverage, we believe that substantially all of the $121.1 million of insurance proceeds will ultimately be collected, although there can be no assurance that the insurance companies will make the payments as and when due. The $121.1 million is in addition to the $20.8 million collected in 2013. Based on those agreements and policies, some of which define specific annual amounts to be paid and others of which limit the amount that can be recovered in any one year, we anticipate that $39.1 million will become collectible at the conclusion of GST’s Chapter 11 proceeding and, assuming the insurers pay according to the agreements and policies, that the following amounts should be collected in the years set out below regardless of when the case concludes: | ||||||||
2014 – $20 million | ||||||||
2015 – $20 million | ||||||||
2016 – $18 million | ||||||||
2017 – $13 million | ||||||||
2018 – $11 million | ||||||||
GST LLC has received $7.2 million of insurance recoveries from insolvent carriers since 2007 and may receive additional payments from insolvent carriers in the future. No anticipated insolvent carrier collections are included in the $121.1 million of anticipated collections. The insurance available to cover current and future asbestos claims is from comprehensive general liability policies that cover Coltec and certain of its other subsidiaries in addition to GST LLC for periods prior to 1985 and therefore could be subject to potential competing claims of other covered subsidiaries and their assignees. | ||||||||
Liability Estimate. Our recorded asbestos liability as of the Petition Date was $472.1 million. We based that recorded liability on an estimate of probable and estimable expenditures to resolve asbestos personal injury claims under generally accepted accounting principles, made with the assistance of Garrison and an estimation expert, Bates White, retained by GST LLC’s counsel. The estimate developed was an estimate of the most likely point in a broad range of potential amounts that GST LLC might pay to resolve asbestos claims (by settlement in the majority of the cases except those dismissed or tried) over the ten-year period following the date of the estimate in the state court system, plus accrued but unpaid legal fees. The estimate, which was not discounted to present value, did not reflect GST LLC’s views of its actual legal liability; GST LLC has continuously maintained that its products could not have been a substantial contributing cause of any asbestos disease. Instead, the liability estimate reflected GST LLC’s recognition that most claims would be resolved more efficiently and at a significantly lower total cost through settlements without any actual liability determination. | ||||||||
Neither we nor GST has endeavored to update the accrual since the Petition Date except as necessary to reflect payments of accrued fees and the disposition of cases on appeal. After those necessary updates, the liability accrual at December 31, 2013 was $466.8 million. In each asbestos-driven Chapter 11 case that has been resolved previously, the amount of the debtor’s liability has been determined as part of a consensual plan of reorganization agreed to by the debtor and its creditors, including asbestos claimants and a representative of potential future claimants. GST does not believe that there is a reliable process by which an estimate of such a consensual resolution can be made and therefore believes that, prior to the resolution of liability in GST LLC's Chapter 11 proceeding, there is no basis upon which it can revise the estimate last updated prior to the Petition Date. In addition, we do not believe that we can make a reasonable estimate of a specific range of more likely outcomes with respect to the asbestos liability of GST. | ||||||||
In a proposed plan of reorganization filed by GST and opposed by claimant representatives, GST has proposed to resolve all pending and future claims. GST has estimated that the amounts to be paid into the trust created by the plan for payments to future claimants, plus the indemnity costs incurred under the plan to pay present claimants, would be approximately $270 million. | ||||||||
The proposed plan of reorganization includes provisions that would resolve any and all alleged derivative claims against us based on GST asbestos products. The provisions specify that we would fund $30 million of the amount proposed to be paid into the trust to pay future claimants and would guarantee the obligations of GST under the plan. Those provisions are incorporated into the terms of the proposed plan only in the context of the specifics of that plan, which would result in the equity interests of GST being retained by GST’s equity holder, the reconsolidation of GST into the Company with substantial equity above the amount of equity currently included in our consolidated financial statements, and an injunction protecting us from future GST claims. | ||||||||
As stated previously, GST intends to incorporate the judge's recent decision estimating GST's liability for mesothelioma into a plan of reorganization that it will submit in place of the current proposed plan. GST has not yet determined the amount that it will propose be included in the revised plan. We cannot predict when a plan of reorganization for GST might be approved and effective nor can we predict the amount of funding that a confirmed plan will require. An estimation trial for the purpose of determining the number and value of allowed mesothelioma claims for plan feasibility purposes commenced on July 22, 2013, and concluded on August 22, 2013. On January 10, 2014, the Bankruptcy Court entered an order estimating GST's liability for present and future mesothelioma claims at $125 million, consistent with the positions that GST put forth at trial. The Court's estimate is for mesothelioma claims only. Additional amounts may be necessary to resolve other disease claims and trust administration costs. This estimation decision does not end the case; there are many potential hurdles, including appeals, that may arise prior to plan confirmation. | ||||||||
Other Commitments | ||||||||
We have a number of operating leases primarily for real estate, equipment and vehicles. Operating lease arrangements are generally utilized to secure the use of assets if the terms and conditions of the lease or the nature of the asset makes the lease arrangement more favorable than a purchase. Future minimum lease payments by year and in the aggregate, under noncancelable operating leases with initial or remaining noncancelable lease terms in excess of one year, consisted of the following at December 31, 2013 (in millions): | ||||||||
2014 | $ | 12.7 | ||||||
2015 | 11 | |||||||
2016 | 8.4 | |||||||
2017 | 7.1 | |||||||
2018 | 6.8 | |||||||
Thereafter | 5.8 | |||||||
Total minimum payments | $ | 51.8 | ||||||
Net rent expense was $15.0 million, $15.1 million and $15.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||||||||||||||||||||
20 | Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Net sales | $ | 286.9 | $ | 311.5 | $ | 305.8 | $ | 301.7 | $ | 276 | $ | 291.7 | $ | 275.5 | $ | 279.3 | ||||||||||||||||
Gross profit | $ | 94.2 | $ | 107.2 | $ | 109.2 | $ | 103 | $ | 92.1 | $ | 98.8 | $ | 85.8 | $ | 91.1 | ||||||||||||||||
Net income | $ | 8.6 | $ | 13.8 | $ | 8 | $ | 10.2 | $ | 5.6 | $ | 11.3 | $ | 5.2 | $ | 5.7 | ||||||||||||||||
Basic earnings per share | $ | 0.41 | $ | 0.67 | $ | 0.39 | $ | 0.5 | $ | 0.27 | $ | 0.54 | $ | 0.25 | $ | 0.28 | ||||||||||||||||
Diluted earnings per share | $ | 0.39 | $ | 0.64 | $ | 0.35 | $ | 0.47 | $ | 0.23 | $ | 0.53 | $ | 0.22 | $ | 0.27 | ||||||||||||||||
SCHEDULE_II_Valuation_and_Qual
SCHEDULE II - Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
SCHEDULE II - Valuation and Qualifying Accounts | ' | |||||||||||||||||||
SCHEDULE II | ||||||||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||||||
For the Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||
Balance, | Charge | Write-off of | Other (1) | Balance, | ||||||||||||||||
Beginning | to Expense | Receivables | End of Year | |||||||||||||||||
of Year | ||||||||||||||||||||
2013 | $ | 5.7 | $ | 1.7 | $ | (1.4 | ) | $ | — | $ | 6 | |||||||||
2012 | $ | 4.6 | $ | 1.7 | $ | (0.9 | ) | $ | 0.3 | $ | 5.7 | |||||||||
2011 | $ | 3.6 | $ | 1.6 | $ | (0.9 | ) | $ | 0.3 | $ | 4.6 | |||||||||
-1 | Consists primarily of the effect of changes in currency rates. | |||||||||||||||||||
Deferred Income Tax Valuation Allowance | ||||||||||||||||||||
Balance, | Charge | Expiration of | Other (2) | Balance, | ||||||||||||||||
Beginning | to Expense | Net Operating | End of Year | |||||||||||||||||
of Year | Losses | |||||||||||||||||||
2013 | $ | 17.7 | $ | (1.8 | ) | $ | (0.1 | ) | $ | 1.8 | $ | 17.6 | ||||||||
2012 | $ | 12.1 | $ | 4.8 | $ | — | $ | 0.8 | $ | 17.7 | ||||||||||
2011 | $ | 10.1 | $ | 3.1 | $ | — | $ | (1.1 | ) | $ | 12.1 | |||||||||
-2 | Consists primarily of the effects of changes in currency rates and statutory changes in tax rates. |
Overview_Significant_Accountin1
Overview, Significant Accounting Policies and Recently Issued Accounting Pronouncements (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation – The Consolidated Financial Statements reflect the accounts of the Company and our majority-owned and controlled subsidiaries. All intercompany accounts and transactions between our consolidated operations have been eliminated. | ||
Use of Estimates | ' | |
Use of Estimates – The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | ||
Revenue Recognition | ' | |
Revenue Recognition – For the Sealing Products and Engineered Products segments, revenue is recognized at the time title and risk of product ownership is transferred or when services are rendered, and shipping costs billed to customers are recognized as revenue and expensed in cost of goods sold. | ||
We generally use the percentage-of-completion (“POC”) accounting method to account for our long-term contracts associated with the design, development, manufacture, or modification of complex engines under fixed price or cost plus contracts. During the third quarter of 2011, the Engine Products and Services segment began using POC for prospective engine contracts. We made this change because, as a result of enhancements to our financial management and reporting systems, we are able to reasonably estimate the revenue, costs, and progress towards completion of engine builds. If we are not able to meet those conditions for a particular engine contract, we recognize revenues using the completed-contract method. Additionally, engines that were in production at June 30, 2011 will continue to use the completed-contract method. | ||
Under POC, revenue is recognized based on the extent of progress towards completion of the long-term contract. We generally use the cost-to-cost measure for our long-term contracts unless we believe another method more clearly measures progress towards completion of the contract. Under the cost-to-cost measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the total estimated costs at completion of the contract. Contract costs include labor, material and subcontracting costs, as well as an allocation of indirect costs. Revenues, including estimated fees or profits, are recorded as costs are incurred. | ||
Due to the nature of the work required to be performed on many of our contracts, the estimation of total revenue and cost at completion is complex and subject to many variables. Management must make assumptions and estimates regarding labor productivity, the complexity of the work to be performed, the availability of materials, the length of time to complete the contract (to estimate increases in wages and prices for materials and related support cost allocations), performance by our subcontractors and overhead cost rates, among other variables. Based on our analysis, any quarterly adjustments to net sales, cost of sales, and the related impact to operating income are recorded as necessary in the period they become known. These adjustments may result in an increase or a decrease in operating income. Changes in estimates of net sales, cost of sales, and the related impact to operating income are recognized quarterly on a cumulative catch-up basis, which recognizes in the current period the cumulative effect of the changes on current and prior periods based on a contract's percentage of completion. A significant change in one or more of these estimates could affect the profitability of one or more of our contracts. When estimates of total costs to be incurred on a contract exceed total estimates of revenue to be earned, a provision for the entire loss on the contract is recorded in the period the loss is determined. | ||
Contracts accounted for under the POC method represented revenues and operating income of $64.3 million and $9.0 million, respectively, for the year ended December 31, 2013, $67.3 million and $13.1 million, respectively, for the year ended December 31, 2012, and $9.6 million and $1.5 million, respectively, for the year ended December 31, 2011. | ||
Foreign Currency Translation | ' | |
Foreign Currency Translation – The financial statements of those operations whose functional currency is a foreign currency are translated into U.S. dollars using the current rate method. Under this method, all assets and liabilities are translated into U.S. dollars using current exchange rates, and income statement activities are translated using average exchange rates. The foreign currency translation adjustment is included in accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses on foreign currency transactions are included in operating income. Foreign currency transaction losses totaled $(2.3) million, $(0.3) million, and $(0.9) million for 2013, 2012, and 2011, respectively. | ||
Research and Development Expense | ' | |
Research and Development Expense – Costs related to research and development activities are expensed as incurred. We perform research and development primarily under Company-funded programs for commercial products. Net research and development expenditures in 2013, 2012, and 2011 were $11.3 million, $10.8 million, and $14.6 million, respectively, and are included in selling, general and administrative expenses in the Consolidated Statements of Operations. | ||
Income Taxes | ' | |
Income Taxes – We use the asset and liability method of accounting for income taxes. Temporary differences arising between the tax basis of an asset or liability and its carrying amount on the Consolidated Balance Sheet are used to calculate future income tax assets or liabilities. This method also requires the recognition of deferred tax benefits, such as net operating loss carryforwards. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income (losses) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A tax benefit from an uncertain tax position is recognized only if it is more likely than not that the position will be sustained on its technical merits. If the recognition threshold for the tax position is met, only the portion of the tax benefit that is greater than 50 percent likely to be realized is recorded. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, demand deposits and highly liquid investments with a maturity of three months or less at the time of purchase. | ||
Receivables | ' | |
Receivables – Accounts receivable are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. We establish an allowance for doubtful accounts receivable based on historical experience and any specific customer collection issues we have identified. Doubtful accounts receivable are written off when a settlement is reached for an amount less than the outstanding historical balance or when we have determined the balance will not be collected. | ||
The balances billed but not paid by customers pursuant to retainage provisions in long-term contracts and programs are due upon completion of the contracts and acceptance by the owner. At December 31, 2013, we had $3.5 million of retentions expected to be collected in 2014 recorded in accounts receivable and $2.7 million of retentions expected to be collected beyond 2014 recorded in other long-term assets in the Consolidated Balance Sheets. At December 31, 2012, we had $3.6 million of current retentions and $2.9 million of long-term retentions recorded in the Consolidated Balance Sheets. | ||
Inventories | ' | |
Inventories – Certain domestic inventories are valued by the last-in, first-out (“LIFO”) cost method. Inventories not valued by the LIFO method, other than inventoried costs relating to long-term contracts and programs, are valued using the first-in, first-out (“FIFO”) cost method, and are recorded at the lower of cost or market. Approximately 39% and 37% of inventories were valued by the LIFO method in 2013 and 2012, respectively. | ||
Inventoried costs relating to long-term contracts and programs are stated at the actual production cost, incurred to date, including direct labor and factory overhead. Progress payments related to long-term contracts and programs accounted for under the completed-contract method of accounting are shown as a reduction of inventories. Initial program start-up costs and other nonrecurring costs are expensed as incurred. Inventoried costs relating to long-term contracts and programs are reduced by any amounts in excess of estimated realizable value. | ||
Property, Plant and Equipment | ' | |
Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation of plant and equipment is determined on the straight-line method over the following estimated useful lives of the assets: buildings and improvements, 5 to 25 years; machinery and equipment, 3 to 10 years. | ||
Goodwill and Other Intangible Assets | ' | |
Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price over the fair value of the net assets of acquired businesses. Goodwill is not amortized, but instead is subject to annual impairment testing conducted each year as of October 1. The goodwill asset impairment test involves comparing the fair value of a reporting unit to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, a second step of comparing the implied fair value of the reporting unit’s goodwill to the carrying amount of that goodwill is required to measure the potential goodwill impairment loss. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. | ||
To estimate the fair value of our reporting units, we use both discounted cash flow and market valuation approaches. The discounted cash flow approach uses cash flow projections to calculate the fair value of each reporting unit while the market approach relies on market multiples of similar companies. The key assumptions used for the discounted cash flow approach include business projections, growth rates, and discount rates. The discount rate we use is based on our weighted average cost of capital. For the market approach, we chose a group of 14 companies we believe are representative of our diversified industrial peers. We used a 70% weighting for the discounted cash flow valuation approach and a 30% weighting for the market valuation approach, reflecting our belief that the discounted cash flow valuation approach provides a better indicator of value since it reflects the specific cash flows anticipated to be generated in the future by the business. | ||
We completed our required annual impairment tests of goodwill as of October 1, 2013, 2012, and 2011. These assessments did not indicate any impairment of the goodwill. | ||
Other intangible assets are recorded at cost, or when acquired as a part of a business combination, at estimated fair value. These assets include customer relationships, patents and other technology agreements, trademarks, licenses and non-compete agreements. Intangible assets that have definite lives are amortized using a method that reflects the pattern in which the economic benefits of the assets are consumed or the straight-line method over estimated useful lives of 3 to 25 years. Intangible assets with indefinite lives are subject to at least annual impairment testing, which compares the fair value of the intangible asset with its carrying amount using the relief from royalty method. The results of our assessments did not indicate any impairment to our indefinite-lived intangible assets for the years presented. | ||
Investment in GST | ' | |
Investment in GST – The historical business operations of Garlock Sealing Technologies LLC (“GST LLC”) and The Anchor Packing Company (“Anchor”) have resulted in a substantial volume of asbestos litigation in which plaintiffs have alleged personal injury or death as a result of exposure to asbestos fibers. Those subsidiaries manufactured and/or sold industrial sealing products, predominately gaskets and packing, that contained encapsulated asbestos fibers. Anchor is an inactive and insolvent indirect subsidiary of Coltec Industries Inc (“Coltec”). Our subsidiaries’ exposure to asbestos litigation and their relationships with insurance carriers have been managed through another Coltec subsidiary, Garrison Litigation Management Group, Ltd. (“Garrison”). GST LLC, Anchor and Garrison are collectively referred to as “GST.” | ||
On June 5, 2010 (the “Petition Date”), GST LLC, Anchor and Garrison filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Western District of North Carolina in Charlotte (the “Bankruptcy Court”). GST’s financial results were included in our consolidated results through June 4, 2010, the day prior to the Petition Date. However, GAAP requires that an entity that files for protection under the U.S. Bankruptcy Code, whether solvent or insolvent, whose financial statements were previously consolidated with those of its parent, as GST and its subsidiaries were with EnPro, generally must be prospectively deconsolidated from the parent and the investment accounted for using the cost method. At deconsolidation, our investment was recorded at its estimated fair value on June 4, 2010. The cost method requires us to present our ownership interests in the net assets of GST at the Petition Date as an investment and to not recognize any income or loss from GST and subsidiaries in our results of operations during the reorganization period. When GST emerges from the jurisdiction of the Bankruptcy Court, the subsequent accounting will be determined based upon the applicable facts and circumstances at such time, including the terms of any plan of reorganization. | ||
The investment in GST is subject to periodic reviews for impairment. To estimate the fair value, we consider many factors and use both discounted cash flow and market valuation approaches. In the discounted cash flow approach, we use cash flow projections to calculate the fair value of GST. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, historical and projected growth rates, discount rates, estimated asbestos claim values and insurance collection projections. We do not adjust the assumption about asbestos claims values from the amount reflected in the liability GST recorded prior to the deconsolidation. The asbestos claims value will be determined in the claims resolution process, either through negotiations with claimant representatives or, absent a negotiated resolution, by the Bankruptcy Court after contested proceedings. Our estimates are based upon assumptions we have consistently applied in prior years and which are believed to be reasonable, but which by their nature are uncertain and unpredictable. For the market approach, we use recent acquisition multiples for businesses of similar size to GST. We use a 70% weighting for the discounted cash flow valuation approach and a 30% weighting for the market valuation approach, reflecting our belief that the discounted cash flow valuation approach provides the best indication of value since it reflects the specific cash flows anticipated to be generated in the future by GST. | ||
The ability of GST LLC and Garrison to continue as going concerns is dependent upon their ability to resolve their ultimate asbestos liability in the bankruptcy from their net assets, future cash flows, and available insurance proceeds, whether through the confirmation of a plan of reorganization or otherwise. As a result of the bankruptcy filing and related events, there can be no assurance the carrying values of the assets, including the carrying value of the business and the tax receivable, will be realized or that liabilities will be liquidated or settled for the amounts recorded. In addition, a plan of reorganization, or rejection thereof, could change the amounts reported in the GST LLC and Garrison financial statements and cause a material change in the carrying amount of our investment in GST. | ||
Debt | ' | |
Debt – We have $172.5 million outstanding in aggregate principal amount of 3.9375% Convertible Senior Debentures (the “Convertible Debentures”). Applicable authoritative accounting guidance required that the liability component of the Convertible Debentures be recorded at its fair value as of the issuance date. This resulted in us recording debt in the amount of $111.2 million as of the October 2005 issuance date with the $61.3 million offset to the debt discount being recorded in equity on a net of tax basis. The debt discount, $15.9 million as of December 31, 2013, is being amortized through interest expense until the maturity date of October 15, 2015, resulting in an effective interest rate of approximately 9.5% and a $156.6 million net carrying amount of the liability component at December 31, 2013. As of December 31, 2012, the unamortized debt discount was $23.5 million and the net carrying amount of the liability component was $149.0 million. Interest expense related to the Convertible Debentures for the years ended December 31, 2013, 2012 and 2011 includes $6.8 million of contractual interest coupon in each period and $7.6 million, $6.9 million and $6.3 million, respectively, of debt discount amortization. | ||
Derivative Instruments | ' | |
Derivative Instruments – We use derivative financial instruments to manage our exposure to various risks. The use of these financial instruments modifies the exposure with the intent of reducing our risk. We do not use financial instruments for trading purposes, nor do we use leveraged financial instruments. The counterparties to these contractual arrangements are major financial institutions and GST LLC as described in Note 11. We use multiple financial institutions for derivative contracts to minimize the concentration of credit risk. The current accounting rules require derivative instruments, excluding certain contracts that are issued and held by a reporting entity that are both indexed to its own stock and classified in shareholders’ equity, be reported in the Consolidated Balance Sheets at fair value and that changes in a derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. | ||
We are exposed to foreign currency risks that arise from normal business operations. These risks include the translation of local currency balances on our foreign subsidiaries’ balance sheets, intercompany loans with foreign subsidiaries and transactions denominated in foreign currencies. We strive to control our exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. We have entered into contracts to hedge forecasted transactions occurring at various dates through December 2014 that are denominated in foreign currencies. The notional amount of foreign exchange contracts hedging foreign currency transactions was $51.1 million and $130.4 million at December 31, 2013 and 2012, respectively. | ||
Prior to 2013, we applied cash flow hedge accounting to certain of our foreign currency derivatives. We elected to discontinue this accounting treatment in the first quarter of 2013, consequently, all gains and losses that had been deferred in accumulated other comprehensive income (loss) at December 31, 2012 were reclassified to income in the quarter ended March 31, 2013. See Note 15 for additional information. The notional amounts of all of our foreign exchange contracts were recorded at their fair market value as of December 31, 2013 with changes in market value recorded in income. The earnings impact of any foreign exchange contract that is specifically related to the purchase of inventory is recorded in cost of sales and the changes in market value of all other contracts are recorded in selling, general and administrative expense in the Consolidated Statements of Operations. The balances of derivative assets are recorded in other current assets and the balances of derivative liabilities are recorded in accrued expenses in the Consolidated Balance Sheets. | ||
Fair Value Measurements | ' | |
Fair Value Measurements – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. | ||
We utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: | ||
• | Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. | |
• | Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. | |
• | Level 3: Unobservable inputs that reflect our own assumptions. | |
The fair value of intangible assets associated with acquisitions was determined using a discounted cash flow analysis. Projecting discounted future cash flows required us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital and the appropriate discount rate. This non-recurring fair value measurement would be classified as Level 3 due to the absence of quoted market prices or observable inputs for assets of a similar nature. | ||
Similarly, the fair value computations for the recurring impairment analyses of goodwill, indefinite-lived intangible assets and the investment in GST would be classified as Level 3 due to the absence of quoted market prices or observable inputs. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, historical and projected growth rates and discount rates. Significant changes in any of those inputs could result in a significantly different fair value measurement. | ||
Recently Issued Accounting Guidance | ' | |
Recently Issued Accounting Guidance | ||
In July 2013, accounting guidance was amended to reduce diversity in practice in the presentation of an unrecognized tax benefit when a tax loss or credit carryforward exists. This amendment is effective for periods beginning after December 15, 2013 and must be applied prospectively for unrecognized tax benefits that exist at the effective date. Early adoption is permitted. We are currently evaluating the potential impact of this change on our consolidated financial results and balance sheet. | ||
In February 2013, accounting guidance was amended to require companies to report, in one place, information about reclassifications out of accumulated other comprehensive income. Companies are also required to present reclassifications by component when reporting changes in the accumulated other comprehensive income balances. These changes became effective prospectively in fiscal years and interim periods within those years beginning after December 15, 2012. Other than the change in presentation, there was no effect on our consolidated financial results. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Business Combinations [Abstract] | ' | ||
Schedule Of Pro Forma Condensed Consolidated Financial Results Of Operations | ' | ||
The following pro forma condensed consolidated financial results of operations for the year ended December 31, 2011 is presented as if the 2011 acquisitions had been completed prior to 2011 (in millions): | |||
Pro forma net sales | $1,161.70 | ||
Pro forma net income | 50.9 |
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Schedule of Restructuring Reserves | ' | |||||||||||||||
Restructuring reserves at December 31, 2013, as well as activity during the year, consisted of: | ||||||||||||||||
Balance | Provision | Payments | Balance | |||||||||||||
December 31, | December 31, | |||||||||||||||
2012 | 2013 | |||||||||||||||
(in millions) | ||||||||||||||||
Personnel-related costs | $ | 0.1 | $ | 5.2 | $ | (2.8 | ) | $ | 2.5 | |||||||
Facility relocation and closure costs | 0.8 | 1.5 | (1.6 | ) | 0.7 | |||||||||||
$ | 0.9 | $ | 6.7 | $ | (4.4 | ) | $ | 3.2 | ||||||||
Restructuring reserves at December 31, 2012, as well as activity during the year, consisted of: | ||||||||||||||||
Balance | Provision | Payments | Balance | |||||||||||||
December 31, | December 31, | |||||||||||||||
2011 | 2012 | |||||||||||||||
(in millions) | ||||||||||||||||
Personnel-related costs | $ | — | $ | 2.8 | $ | (2.7 | ) | $ | 0.1 | |||||||
Facility relocation and closure costs | 0.6 | 2.2 | (2.0 | ) | 0.8 | |||||||||||
$ | 0.6 | $ | 5 | $ | (4.7 | ) | $ | 0.9 | ||||||||
Restructuring reserves at December 31, 2011, as well as activity during the year, consisted of: | ||||||||||||||||
31-Dec-10 | Provision | Payments | Balance | |||||||||||||
December 31, | ||||||||||||||||
2011 | ||||||||||||||||
(in millions) | ||||||||||||||||
Personnel-related costs | $ | 0.7 | $ | 0.1 | $ | (0.8 | ) | $ | — | |||||||
Facility relocation costs | 0.2 | 1.3 | (0.9 | ) | 0.6 | |||||||||||
$ | 0.9 | $ | 1.4 | $ | (1.7 | ) | $ | 0.6 | ||||||||
Schedule of Restructuring Costs By Reportable Segment | ' | |||||||||||||||
Restructuring costs by reportable segment are as follows: | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
(in millions) | ||||||||||||||||
Sealing Products | $ | 0.9 | $ | 1.5 | $ | 1.3 | ||||||||||
Engineered Products | 3.7 | 3.5 | 0.1 | |||||||||||||
Engine Products and Services | 2.1 | — | — | |||||||||||||
$ | 6.7 | $ | 5 | $ | 1.4 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Statement [Abstract] | ' | ||||||||||||
Schedule of Income Before Income Tax Domestic and Foreign | ' | ||||||||||||
Income before income taxes as shown in the Consolidated Statements of Operations consists of the following: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Domestic | $ | (4.3 | ) | $ | 27.7 | $ | 22.6 | ||||||
Foreign | 40.1 | 35.8 | 42.4 | ||||||||||
Total | $ | 35.8 | $ | 63.5 | $ | 65 | |||||||
Summary of Income Tax Expense in Consolidated Statements of Operations From Continuing Operations | ' | ||||||||||||
A summary of income tax expense in the Consolidated Statements of Operations is as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in millions) | |||||||||||||
Current: | |||||||||||||
Federal | $ | (3.7 | ) | $ | 9.3 | $ | 4.7 | ||||||
Foreign | 10 | 5.5 | 11.3 | ||||||||||
State | 0.4 | 1.8 | 0.5 | ||||||||||
6.7 | 16.6 | 16.5 | |||||||||||
Deferred: | |||||||||||||
Federal | 3.3 | 3 | 2.7 | ||||||||||
Foreign | (1.5 | ) | 3.5 | 1.5 | |||||||||
State | (0.1 | ) | (0.6 | ) | 0.1 | ||||||||
1.7 | 5.9 | 4.3 | |||||||||||
Total | $ | 8.4 | $ | 22.5 | $ | 20.8 | |||||||
Schedule of Deferred Income Tax Assets and Liabilities | ' | ||||||||||||
Significant components of deferred income tax assets and liabilities at December 31, 2013 and 2012 are as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
(in millions) | |||||||||||||
Deferred income tax assets: | |||||||||||||
Net operating losses and tax credits | $ | 11.3 | $ | 12.3 | |||||||||
Accrual for post-retirement benefits other than pensions | 3 | 4.5 | |||||||||||
Environmental reserves | 6.2 | 4.5 | |||||||||||
Retained liabilities of previously owned businesses | 5.3 | 8.5 | |||||||||||
Accruals and reserves | 5.6 | 5.4 | |||||||||||
Pensions | 14.5 | 13.6 | |||||||||||
Minimum pension liability | 16.4 | 38.3 | |||||||||||
Inventories | 6.7 | 6 | |||||||||||
Interest | 7.4 | 6.3 | |||||||||||
Compensation and benefits | 11.8 | 9.3 | |||||||||||
Gross deferred income tax assets | 88.2 | 108.7 | |||||||||||
Valuation allowance | (17.6 | ) | (17.7 | ) | |||||||||
Total deferred income tax assets | 70.6 | 91 | |||||||||||
Deferred income tax liabilities: | |||||||||||||
Depreciation and amortization | (37.9 | ) | (36.1 | ) | |||||||||
GST deconsolidation gain | (21.4 | ) | (21.4 | ) | |||||||||
Total deferred income tax liabilities | (59.3 | ) | (57.5 | ) | |||||||||
Net deferred tax assets | $ | 11.3 | $ | 33.5 | |||||||||
Reconciliation of Effective Tax Rate | ' | ||||||||||||
The effective income tax rate from operations varied from the statutory federal income tax rate as follows: | |||||||||||||
Percent of Pretax Income | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||||
US taxation of foreign profits, net of foreign tax credits | 3 | (4.5 | ) | (3.5 | ) | ||||||||
Research and employment tax credits | (7.2 | ) | — | (2.0 | ) | ||||||||
State and local taxes | 7.5 | 1.8 | 0.9 | ||||||||||
Domestic production activities | — | (2.8 | ) | (2.7 | ) | ||||||||
Foreign tax rate differences | (8.5 | ) | (2.2 | ) | (3.6 | ) | |||||||
Uncertain tax positions and prior adjustments | (5.5 | ) | (0.4 | ) | 1.8 | ||||||||
Statutory changes in tax rates | (1.3 | ) | (0.4 | ) | (0.8 | ) | |||||||
Valuation allowance | (6.0 | ) | 7.5 | 4.8 | |||||||||
Nondeductible expenses | 3.5 | 1.7 | 2 | ||||||||||
Other items, net | 2.9 | (0.4 | ) | 0.2 | |||||||||
Effective income tax rate | 23.4 | % | 35.3 | % | 32.1 | % | |||||||
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (excluding interest) is as follows: | |||||||||||||
(in millions) | 2013 | 2012 | 2011 | ||||||||||
Balance at beginning of year | $ | 6.3 | $ | 4.8 | $ | 2.4 | |||||||
Additions as a result of acquisitions | — | 0.1 | 0.5 | ||||||||||
Additions based on tax positions related to the current year | 1 | 0.9 | 0.7 | ||||||||||
Additions for tax positions of prior years | 2.6 | 2.7 | 3.1 | ||||||||||
Reductions for tax positions of prior years | (0.8 | ) | (0.2 | ) | (0.1 | ) | |||||||
Reductions as a result of a lapse in the statute of limitations | (3.4 | ) | (1.9 | ) | (1.5 | ) | |||||||
Reductions as a result of audit settlements | — | (0.1 | ) | (0.3 | ) | ||||||||
Changes due to fluctuations in foreign currency | 0.2 | — | — | — | |||||||||
Balance at end of year | $ | 5.9 | $ | 6.3 | $ | 4.8 | |||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | ' | |||||||||||
The computation of basic and diluted earnings per share is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Numerator (basic and diluted): | ||||||||||||
Net income | $ | 27.4 | $ | 41 | $ | 44.2 | ||||||
Denominator: | ||||||||||||
Weighted-average shares – basic | 20.9 | 20.7 | 20.5 | |||||||||
Share-based awards | 0.2 | 0.4 | 0.3 | |||||||||
Convertible debentures and related warrants | 2.4 | 0.5 | 0.7 | |||||||||
Weighted-average shares – diluted | 23.5 | 21.6 | 21.5 | |||||||||
Earnings per share: | ||||||||||||
Basic | $ | 1.31 | $ | 1.99 | $ | 2.15 | ||||||
Diluted | $ | 1.17 | $ | 1.9 | $ | 2.06 | ||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventories | ' | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Finished products | $ | 84.3 | $ | 72 | ||||
Work in process | 36 | 33.4 | ||||||
Raw materials and supplies | 42.8 | 36.3 | ||||||
163.1 | 141.7 | |||||||
Reserve to reduce certain inventories to LIFO basis | (14.0 | ) | (12.4 | ) | ||||
Manufacturing inventories | 149.1 | 129.3 | ||||||
Incurred costs related to long-term contracts | — | 16.6 | ||||||
Progress payments related to long-term contracts | — | (15.1 | ) | |||||
Net balance associated with completed-contract inventories | — | 1.5 | ||||||
Total inventories | $ | 149.1 | $ | 130.8 | ||||
PercentageofCompletion_LongTer1
Percentage-of-Completion Long-Term Contracts (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Contractors [Abstract] | ' | |||||||
Schedule of Information Regarding Contracts Accounted for Under the Percentage-of-Completion Method | ' | |||||||
Amounts recognized in the accompanying financial statements are as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Cumulative revenues recognized on uncompleted POC contracts | $ | 141.1 | $ | 76.9 | ||||
Cumulative billings on uncompleted POC contracts | 146.6 | 71.2 | ||||||
$ | (5.5 | ) | $ | 5.7 | ||||
Schedule of Uncompleted Contracts Reflected in Consolidated Balance Sheets | ' | |||||||
These amounts were included in the accompanying Consolidated Balance Sheets under the following captions: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Accounts receivable (POC revenue recognized in excess of billings) | $ | 4.3 | $ | 10.3 | ||||
Accrued expenses (POC billings where revenue has not yet been earned) | (9.8 | ) | (4.6 | ) | ||||
$ | (5.5 | ) | $ | 5.7 | ||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Schedule of Property Plant and Equipment | ' | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Land | $ | 9.2 | $ | 5.8 | ||||
Buildings and improvements | 97.1 | 96.3 | ||||||
Machinery and equipment | 370.1 | 341.6 | ||||||
Construction in progress | 16.7 | 25.3 | ||||||
493.1 | 469 | |||||||
Less accumulated depreciation | (305.6 | ) | (283.5 | ) | ||||
Total | $ | 187.5 | $ | 185.5 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment | ' | |||||||||||||||
The changes in the net carrying value of goodwill by reportable segment for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||||||
Sealing | Engineered | Engine | Total | |||||||||||||
Products | Products | Products | ||||||||||||||
and | ||||||||||||||||
Services | ||||||||||||||||
(in millions) | ||||||||||||||||
Gross goodwill as of December 31, 2011 | $ | 164.1 | $ | 166.5 | $ | 7.1 | $ | 337.7 | ||||||||
Accumulated impairment losses | (27.8 | ) | (108.7 | ) | — | (136.5 | ) | |||||||||
Goodwill as of December 31, 2011 | 136.3 | 57.8 | 7.1 | 201.2 | ||||||||||||
Foreign currency translation | 0.6 | 1.8 | — | 2.4 | ||||||||||||
Acquisitions | 15.9 | 0.9 | — | 16.8 | ||||||||||||
Gross goodwill as of December 31, 2012 | 180.6 | 169.2 | 7.1 | 356.9 | ||||||||||||
Accumulated impairment losses | (27.8 | ) | (108.7 | ) | — | (136.5 | ) | |||||||||
Goodwill as of December 31, 2012 | 152.8 | 60.5 | 7.1 | 220.4 | ||||||||||||
Foreign currency translation | 0.9 | (0.9 | ) | — | — | |||||||||||
Acquisitions | — | (0.2 | ) | — | (0.2 | ) | ||||||||||
Gross goodwill as of December 31, 2013 | 181.5 | 168.1 | 7.1 | 356.7 | ||||||||||||
Accumulated impairment losses | (27.8 | ) | (108.7 | ) | — | (136.5 | ) | |||||||||
Goodwill as of December 31, 2013 | $ | 153.7 | $ | 59.4 | $ | 7.1 | $ | 220.2 | ||||||||
Schedule of Identifiable Intangible Assets | ' | |||||||||||||||
Identifiable intangible assets are as follows: | ||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | |||||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||
Amount | Amount | |||||||||||||||
(in millions) | ||||||||||||||||
Amortized: | ||||||||||||||||
Customer relationships | $ | 191.2 | $ | 85 | $ | 190 | $ | 70.7 | ||||||||
Existing technology | 53.9 | 18.8 | 53.8 | 13.3 | ||||||||||||
Trademarks | 33.7 | 16.9 | 33.2 | 14.8 | ||||||||||||
Other | 23.4 | 17.9 | 23.6 | 15.7 | ||||||||||||
302.2 | 138.6 | 300.6 | 114.5 | |||||||||||||
Indefinite-Lived: | ||||||||||||||||
Trademarks | 36.5 | — | 36.4 | — | ||||||||||||
Total | $ | 338.7 | $ | 138.6 | $ | 337 | $ | 114.5 | ||||||||
Schedule of Estimated Amortization Expense of Intangible Assets | ' | |||||||||||||||
The estimated amortization expense for those intangible assets for the next five years is as follows (in millions): | ||||||||||||||||
2014 | $ | 22.8 | ||||||||||||||
2015 | $ | 20.8 | ||||||||||||||
2016 | $ | 18.6 | ||||||||||||||
2017 | $ | 17.5 | ||||||||||||||
2018 | $ | 17.3 | ||||||||||||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accrued Expenses | ' | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Salaries, wages and employee benefits | $ | 45.3 | $ | 47.2 | ||||
Interest | 30 | 28.8 | ||||||
Contract advances | 23.7 | 7.1 | ||||||
Income and other taxes | 10.8 | 13.1 | ||||||
Other | 31.1 | 25.6 | ||||||
$ | 140.9 | $ | 121.8 | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Related Party Transactions [Abstract] | ' | |||||||||||||
Schedule of Amounts Included in Financial Statements Arising From Transactions with GST | ' | |||||||||||||
Amounts included in our financial statements arising from transactions with GST include the following: | ||||||||||||||
Financial Statement | Years Ended December 31, | |||||||||||||
Location | 2013 | 2012 | 2011 | |||||||||||
(in millions) | ||||||||||||||
Sales to GST | Net sales | $ | 24.4 | $ | 26.1 | $ | 24.4 | |||||||
Purchases from GST | Cost of sales | $ | 26.5 | $ | 20.1 | $ | 21.7 | |||||||
Interest expense to GST | Interest expense | $ | 29.1 | $ | 27.8 | $ | 26.7 | |||||||
Financial Statement | As of December 31, | |||||||||||||
Location | 2013 | 2012 | ||||||||||||
(in millions) | ||||||||||||||
Due from GST | Accounts receivable | $ | 18.3 | $ | 20.5 | |||||||||
Income tax receivable from GST | Other assets | $ | 46.9 | $ | 32.8 | |||||||||
Due to GST | Accounts payable | $ | 6.7 | $ | 5 | |||||||||
Accrued interest to GST | Accrued expenses | $ | 28.5 | $ | 27.4 | |||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long Term Debt | ' | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Convertible Debentures | $ | 156.6 | $ | 149 | ||||
Revolving debt | 7.6 | 34.2 | ||||||
Other notes payable | 0.9 | 2.1 | ||||||
165.1 | 185.3 | |||||||
Less current maturities of long-term debt | 156.6 | 1 | ||||||
$ | 8.5 | $ | 184.3 | |||||
Schedule of Future Principal Payments on Long Term Debt | ' | |||||||
Future principal payments on long-term debt are as follows: | ||||||||
(in millions) | ||||||||
2014 | $ | 0.2 | ||||||
2015 | 180.2 | |||||||
2016 | 0.1 | |||||||
2017 | 0.1 | |||||||
2018 | 0.1 | |||||||
Thereafter | 0.3 | |||||||
$ | 181 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | |||||||||||||||
Assets and liabilities measured at fair value on a recurring basis are summarized as follows: | ||||||||||||||||
Fair Value Measurements as of | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
European government money market | $ | 21.7 | $ | 21.7 | $ | — | $ | — | ||||||||
21.7 | 21.7 | — | — | |||||||||||||
Guaranteed investment contract | 2.8 | — | 2.8 | — | ||||||||||||
Foreign currency derivatives | 0.4 | — | 0.4 | — | ||||||||||||
Deferred compensation assets | 5.3 | 5.3 | — | — | ||||||||||||
$ | 30.2 | $ | 27 | $ | 3.2 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Deferred compensation liabilities | $ | 7.6 | $ | 7.6 | $ | — | $ | — | ||||||||
Foreign currency derivatives | 0.4 | — | 0.4 | — | ||||||||||||
$ | 8 | $ | 7.6 | $ | 0.4 | $ | — | |||||||||
Fair Value Measurements as of | ||||||||||||||||
December 31, 2012 | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
(in millions) | ||||||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
European government money market | $ | 21.9 | $ | 21.9 | $ | — | $ | — | ||||||||
21.9 | 21.9 | — | — | |||||||||||||
Guaranteed investment contract | 2.6 | — | 2.6 | — | ||||||||||||
Foreign currency derivatives | 0.4 | — | 0.4 | — | ||||||||||||
Deferred compensation assets | 4.5 | 4.5 | — | — | ||||||||||||
$ | 29.4 | $ | 26.4 | $ | 3 | $ | — | |||||||||
Liabilities | ||||||||||||||||
Deferred compensation liabilities | $ | 6.5 | $ | 6.5 | $ | — | $ | — | ||||||||
Foreign currency derivatives | 0.9 | — | 0.9 | — | ||||||||||||
$ | 7.4 | $ | 6.5 | $ | 0.9 | $ | — | |||||||||
Schedule of Carrying Value of Financial Instruments | ' | |||||||||||||||
The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximate their respective fair values, except for the following: | ||||||||||||||||
31-Dec-13 | 31-Dec-12 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
Value | Value | Value | Value | |||||||||||||
(in millions) | ||||||||||||||||
Long-term debt | $ | 165.1 | $ | 307.6 | $ | 185.3 | $ | 261.6 | ||||||||
Notes payable to GST | $ | 259.3 | $ | 277.8 | $ | 248.1 | $ | 268.2 | ||||||||
Pensions_and_Postretirement_Be1
Pensions and Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Change in Projected Benefit Obligations | ' | |||||||||||||||||||||||
The following table sets forth the changes in projected benefit obligations and plan assets of our defined benefit pension and other non-qualified and postretirement plans as of and for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Change in Projected Benefit Obligations | ||||||||||||||||||||||||
Projected benefit obligations at beginning of year | $ | 271.3 | $ | 244.1 | $ | 5.4 | $ | 5.3 | ||||||||||||||||
Service cost | 6.3 | 5.7 | 0.4 | 0.3 | ||||||||||||||||||||
Interest cost | 10.6 | 10.5 | 0.2 | 0.2 | ||||||||||||||||||||
Actuarial loss (gain) | (33.0 | ) | 17.9 | (0.9 | ) | 0.4 | ||||||||||||||||||
Benefits paid | (8.3 | ) | (7.1 | ) | (0.4 | ) | (0.8 | ) | ||||||||||||||||
Other | (0.7 | ) | 0.2 | — | — | |||||||||||||||||||
Projected benefit obligations at end of year | 246.2 | 271.3 | 4.7 | 5.4 | ||||||||||||||||||||
Schedule of Change in Plan Assets | ' | |||||||||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||||||
Fair value of plan assets at beginning of year | 158.3 | 135.4 | ||||||||||||||||||||||
Actual return on plan assets | 26.8 | 19.7 | ||||||||||||||||||||||
Administrative expenses | (1.0 | ) | (1.2 | ) | ||||||||||||||||||||
Benefits paid | (8.3 | ) | (7.1 | ) | ||||||||||||||||||||
Company contributions | 22.8 | 11.5 | ||||||||||||||||||||||
Fair value of plan assets at end of year | 198.6 | 158.3 | ||||||||||||||||||||||
Schedule of Change in Plan Assets Underfunded Status at End of Year | ' | |||||||||||||||||||||||
Underfunded Status at End of Year | $ | (47.6 | ) | $ | (113.0 | ) | $ | (4.7 | ) | $ | (5.4 | ) | ||||||||||||
Schedule Of Projected Benefit Obligations Amounts Recognized In Consolidated Balance Sheets | ' | |||||||||||||||||||||||
Amounts Recognized in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Current liabilities | $ | (0.2 | ) | $ | (0.3 | ) | $ | (1.8 | ) | $ | (0.4 | ) | ||||||||||||
Long-term liabilities | (47.4 | ) | (112.7 | ) | (2.9 | ) | (5.0 | ) | ||||||||||||||||
$ | (47.6 | ) | $ | (113.0 | ) | $ | (4.7 | ) | $ | (5.4 | ) | |||||||||||||
Schedule of Pre Tax Charges Recognized in Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
Pre-tax charges recognized in accumulated other comprehensive income (loss) as of December 31, 2013 and 2012 consist of: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net actuarial loss | $ | 43.6 | $ | 99.5 | $ | 0.1 | $ | 1.1 | ||||||||||||||||
Prior service cost | 1.2 | 1.4 | 0.1 | 0.3 | ||||||||||||||||||||
$ | 44.8 | $ | 100.9 | $ | 0.2 | $ | 1.4 | |||||||||||||||||
Schedule Of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Net Periodic Benefit Cost | ||||||||||||||||||||||||
Service cost | $ | 6.3 | $ | 5.7 | $ | 4.8 | $ | 0.4 | $ | 0.4 | $ | 0.7 | ||||||||||||
Interest cost | 10.6 | 10.5 | 10.7 | 0.2 | 0.2 | 0.2 | ||||||||||||||||||
Expected return on plan assets | (13.2 | ) | (11.0 | ) | (9.4 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost | 0.2 | 0.3 | 0.3 | 0.1 | 0.1 | 0.1 | ||||||||||||||||||
Amortization of net loss | 9.4 | 9.8 | 4.7 | — | — | — | ||||||||||||||||||
Settlement | — | — | — | 0.1 | 0.1 | — | ||||||||||||||||||
Deconsolidation of GST | (1.8 | ) | (2.2 | ) | (1.5 | ) | — | — | — | |||||||||||||||
Net periodic benefit cost | 11.5 | 13.1 | 9.6 | 0.8 | 0.8 | 1 | ||||||||||||||||||
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ' | |||||||||||||||||||||||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||||||||||||||||||||
Net loss (gain) | (46.5 | ) | 9.3 | 46.2 | (1.0 | ) | 0.4 | 0.3 | ||||||||||||||||
Prior service cost | — | 0.4 | — | — | — | — | ||||||||||||||||||
Amortization of net loss | (9.4 | ) | (9.8 | ) | (4.7 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost | (0.2 | ) | (0.3 | ) | (0.3 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||
Other adjustment | — | 0.8 | — | (0.1 | ) | (0.1 | ) | — | ||||||||||||||||
Total recognized in other comprehensive income | (56.1 | ) | 0.4 | 41.2 | (1.2 | ) | 0.2 | 0.2 | ||||||||||||||||
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ | (44.6 | ) | $ | 13.5 | $ | 50.8 | $ | (0.4 | ) | $ | 1 | $ | 1.2 | ||||||||||
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | ' | |||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 | ||||||||||||||||||||||||
Discount rate | 5 | % | 4 | % | 4.25 | % | 5 | % | 4.25 | % | 4.25 | % | ||||||||||||
Rate of compensation increase | 3 | % | 3 | % | 4 | % | N/A | 4 | % | 4 | % | |||||||||||||
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 | ||||||||||||||||||||||||
Discount rate | 4 | % | 4.25 | % | 5.5 | % | 4 | % | 4.25 | % | 5.5 | % | ||||||||||||
Expected long-term return on plan assets | 8 | % | 8 | % | 8 | % | — | — | — | |||||||||||||||
Rate of compensation increase | 3 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||
Schedule of Assumed Health Care Cost Trend Rates | ' | |||||||||||||||||||||||
We use the RP-2000 mortality table projected to 2020 by Scale AA to value our domestic pension liabilities. | ||||||||||||||||||||||||
Assumed Health Care Cost Trend Rates at December 31 | 2013 | 2012 | ||||||||||||||||||||||
Health care cost trend rate assumed for next year | 7.2 | % | 7.5 | % | ||||||||||||||||||||
Rate to which the cost trend rate is assumed to decline (the ultimate rate) | 5 | % | 5 | % | ||||||||||||||||||||
Year that the rate reaches the ultimate trend rate | 2024 | 2024 | ||||||||||||||||||||||
Schedule of Asset Allocation for Pension Plans and Target Allocation By Asset Category | ' | |||||||||||||||||||||||
The asset allocation for pension plans at the end of 2013 and 2012, and the target allocation for 2014, by asset category are as follows: | ||||||||||||||||||||||||
Target | Plan Assets at December 31, | |||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||
Equity securities | 55 | % | 56 | % | 65 | % | ||||||||||||||||||
Fixed income | 45 | % | 44 | % | 35 | % | ||||||||||||||||||
100 | % | 100 | % | 100 | % | |||||||||||||||||||
Schedule of Fair Value of Plan Assets | ' | |||||||||||||||||||||||
The investment portfolios of the various funds at December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
Mutual funds – U.S. equity | $ | 71.2 | $ | 77 | ||||||||||||||||||||
Fixed income treasury and money market | 64.4 | 31.3 | ||||||||||||||||||||||
Mutual funds – international equity | 39.3 | 26.7 | ||||||||||||||||||||||
Guaranteed investment contract | 23 | 22.7 | ||||||||||||||||||||||
Cash equivalents | 0.7 | 0.6 | ||||||||||||||||||||||
$ | 198.6 | $ | 158.3 | |||||||||||||||||||||
Schedule of Benefit Payments Reflecting Expected Future Service as Appropriate Expected to Be Paid | ' | |||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||||||
Pension | Other | |||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||
2014 | $ | 9.6 | $ | 1.8 | ||||||||||||||||||||
2015 | 10.1 | 0.2 | ||||||||||||||||||||||
2016 | 11 | 0.2 | ||||||||||||||||||||||
2017 | 12.4 | 0.2 | ||||||||||||||||||||||
2018 | 13.6 | 0.2 | ||||||||||||||||||||||
Years 2019 – 2023 | 80.3 | 2.1 | ||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
Changes in accumulated other comprehensive income (loss) by component (after tax) for the year ended December 31, 2013 are as follows: | ||||||||||||||||
Unrealized | Pension and | Gains and | Total | |||||||||||||
Translation | Other | Losses on | ||||||||||||||
Adjustments | Postretirement | Cash Flow | ||||||||||||||
Plans | Hedges | |||||||||||||||
Beginning balance | $ | 41.6 | $ | (64.0 | ) | $ | (0.6 | ) | $ | (23.0 | ) | |||||
Other comprehensive income before reclassifications | 1 | 29.7 | — | 30.7 | ||||||||||||
Amounts reclassified from accumulated other | — | 6.1 | 0.6 | 6.7 | ||||||||||||
comprehensive income (loss) | ||||||||||||||||
Net current-period other comprehensive income | 1 | 35.8 | 0.6 | 37.4 | ||||||||||||
Ending balance | $ | 42.6 | $ | (28.2 | ) | $ | — | $ | 14.4 | |||||||
Components Of Accumulated Other Comprehensive Income Loss | ' | |||||||||||||||
Reclassifications out of accumulated other comprehensive income (loss) for the year ended December 31, 2013 are as follows: | ||||||||||||||||
Details about Accumulated Other Comprehensive Income (Loss) Components | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Affected Statement of Operations Line Item | ||||||||||||||
Amortization of pension and other postretirement plans: | ||||||||||||||||
Actuarial losses | $ | 9.4 | -1 | |||||||||||||
Prior service costs | 0.3 | -1 | ||||||||||||||
Total before tax | 9.7 | |||||||||||||||
Tax benefit | (3.6 | ) | Income tax expense | |||||||||||||
Net of tax | $ | 6.1 | ||||||||||||||
Gains and losses on cash flow hedges: | ||||||||||||||||
Foreign exchange contracts | $ | 1 | Cost of sales | |||||||||||||
Tax benefit | (0.4 | ) | Income tax expense | |||||||||||||
Net of tax | $ | 0.6 | ||||||||||||||
-1 | These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost. (See Note 14 - "Pensions and Postretirement Benefits" for additional details). |
Equity_Compensation_Plan_Table
Equity Compensation Plan (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||
Summary of Restricted Share Units Activity, Performance Share Activity and Restricted Stock Activity | ' | |||||||||||||||||
A summary of award activity under these plans is as follows: | ||||||||||||||||||
Restricted Share Units | Performance Shares | Restricted Stock | ||||||||||||||||
Shares | Weighted- | Shares | Weighted- | Shares | Weighted- | |||||||||||||
Average | Average | Average | ||||||||||||||||
Grant Date | Grant Date | Grant Date | ||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||
Nonvested at December 31, 2010 | 317,605 | 18.91 | 302,068 | 24.1 | 137,103 | 32.35 | ||||||||||||
Granted | 67,454 | 42.07 | 93,488 | 42.3 | 3,750 | 39.25 | ||||||||||||
Vested | — | — | — | — | (97,436 | ) | 31.84 | |||||||||||
Forfeited | (13,946 | ) | 25.04 | (15,408 | ) | 25.03 | — | — | ||||||||||
Shares settled for cash | (2,263 | ) | 39.56 | — | — | — | — | |||||||||||
Nonvested at December 31, 2011 | 368,850 | 23.24 | 380,148 | 28.54 | 43,417 | 34.69 | ||||||||||||
Granted | 83,841 | 37.65 | 137,382 | 37.65 | 15,000 | 41.47 | ||||||||||||
Vested | (98,834 | ) | 18.8 | (275,336 | ) | 24.1 | (17,833 | ) | 34.55 | |||||||||
Forfeited | (19,127 | ) | 31.65 | (22,992 | ) | 31.48 | — | — | ||||||||||
Shares settled for cash | (32,243 | ) | 41.88 | — | — | — | — | |||||||||||
Nonvested at December 31, 2012 | 302,487 | 29.43 | 219,202 | 39.52 | 40,584 | 37.27 | ||||||||||||
Granted | 99,174 | 44.97 | 169,872 | 44.63 | 11,330 | 55.09 | ||||||||||||
Vested | (141,985 | ) | 20.93 | (70,381 | ) | 42.3 | (21,834 | ) | 34.04 | |||||||||
Forfeited | (24,651 | ) | 41.24 | (40,930 | ) | 41.38 | — | — | ||||||||||
Achievement level adjustment | — | — | (10,985 | ) | 37.65 | — | — | |||||||||||
Shares settled for cash | (18,709 | ) | 47.13 | — | — | — | — | |||||||||||
Nonvested at December 31, 2013 | 216,316 | 41.77 | 266,778 | 41.62 | 30,080 | 46.32 | ||||||||||||
Schedule of Information With Respect to Stock Options | ' | |||||||||||||||||
The following table provides certain information with respect to stock options as of December 31, 2013: | ||||||||||||||||||
Range of Exercise Price | Stock Options | Stock Options | Weighted | Weighted | ||||||||||||||
Outstanding | Exercisable | Average | Average | |||||||||||||||
Exercise Price | Remaining | |||||||||||||||||
Contractual Life | ||||||||||||||||||
Under $40.00 | 100,000 | 100,000 | $ | 34.55 | 4.28 | |||||||||||||
Over $40.00 | 25,288 | — | $ | 42.24 | 7.12 | |||||||||||||
Total | 125,288 | 100,000 | $ | 36.1 | 4.85 | |||||||||||||
Summary of Option Activity Under Plan | ' | |||||||||||||||||
A summary of option activity under the Plan as of December 31, 2013, and changes during the year then ended, is presented below: | ||||||||||||||||||
Share | Weighted | |||||||||||||||||
Options | Average | |||||||||||||||||
Outstanding | Exercise | |||||||||||||||||
Price | ||||||||||||||||||
Balance at December 31, 2012 | 125,288 | $ | 36.1 | |||||||||||||||
Exercised | — | — | ||||||||||||||||
Balance at December 31, 2013 | 125,288 | $ | 36.1 | |||||||||||||||
Schedule Of Intrinsic Value Related to stock Options | ' | |||||||||||||||||
The year-end intrinsic value related to stock options is presented below: | ||||||||||||||||||
As of and for the Years Ended December 31, | ||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||||||
Options outstanding | $ | 2.7 | $ | 0.6 | $ | 0.8 | ||||||||||||
Options exercisable | $ | 2.3 | $ | 0.6 | $ | 0.8 | ||||||||||||
Options exercised | $ | — | $ | 1.2 | $ | 2.1 | ||||||||||||
Schedule of Equity Based Compensation | ' | |||||||||||||||||
We recognized the following equity-based employee compensation expenses and benefits related to our Plan activity: | ||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||
(in millions) | 2013 | 2012 | 2011 | |||||||||||||||
Compensation expense | $ | 6 | $ | 7.3 | $ | 6.6 | ||||||||||||
Related income tax benefit | $ | 2.2 | $ | 2.7 | $ | 2.5 | ||||||||||||
Business_Segment_Information_T
Business Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Segment Operating Results and Other Financial Data | ' | |||||||||||
Segment operating results and other financial data for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Sales | ||||||||||||
Sealing Products | $ | 622.9 | $ | 609.1 | $ | 534.9 | ||||||
Engineered Products | 356.4 | 363 | 386.7 | |||||||||
Engine Products and Services | 167.6 | 214.6 | 185.8 | |||||||||
1,146.90 | 1,186.70 | 1,107.40 | ||||||||||
Intersegment sales | (2.7 | ) | (2.5 | ) | (1.9 | ) | ||||||
Total sales | $ | 1,144.20 | $ | 1,184.20 | $ | 1,105.50 | ||||||
Segment Profit | ||||||||||||
Sealing Products | $ | 97.1 | $ | 88.8 | $ | 81.2 | ||||||
Engineered Products | 17.6 | 20.5 | 29.2 | |||||||||
Engine Products and Services | 14 | 39.2 | 30.6 | |||||||||
Total segment profit | 128.7 | 148.5 | 141 | |||||||||
Corporate expenses | (33.3 | ) | (32.3 | ) | (32.6 | ) | ||||||
Interest expense, net | (44.3 | ) | (42.8 | ) | (39.6 | ) | ||||||
Other expense, net | (15.3 | ) | (9.9 | ) | (3.8 | ) | ||||||
Income before income taxes | $ | 35.8 | $ | 63.5 | $ | 65 | ||||||
No customer accounted for 10% or more of net sales in 2013, 2012 or 2011. | ||||||||||||
Schedule of Segment Related Capital Expenditure, Depreciation and Amortization on those Expenditures | ' | |||||||||||
No customer accounted for 10% or more of net sales in 2013, 2012 or 2011. | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in millions) | ||||||||||||
Capital Expenditures | ||||||||||||
Sealing Products | $ | 14.3 | $ | 9.7 | $ | 10.9 | ||||||
Engineered Products | 14 | 20.9 | 11.9 | |||||||||
Engine Products and Services | 2.4 | 4.9 | 8.4 | |||||||||
Corporate | — | 0.1 | 0.3 | |||||||||
Total capital expenditures | $ | 30.7 | $ | 35.6 | $ | 31.5 | ||||||
Depreciation and Amortization Expense | ||||||||||||
Sealing Products | $ | 30.4 | $ | 30.3 | $ | 22.9 | ||||||
Engineered Products | 22.4 | 21.8 | 21.5 | |||||||||
Engine Products and Services | 3.6 | 3.1 | 3.6 | |||||||||
Corporate | 0.2 | 0.3 | 0.4 | |||||||||
Total depreciation and amortization | $ | 56.6 | $ | 55.5 | $ | 48.4 | ||||||
Schedule of Net Sales by Geographical Area | ' | |||||||||||
Net Sales by Geographic Area | ||||||||||||
United States | $ | 620.3 | $ | 654.2 | $ | 561.3 | ||||||
Europe | 308.6 | 305 | 321.4 | |||||||||
Other foreign | 215.3 | 225 | 222.8 | |||||||||
Total | $ | 1,144.20 | $ | 1,184.20 | $ | 1,105.50 | ||||||
Schedule of Total Assets Segment | ' | |||||||||||
As of December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(in millions) | ||||||||||||
Assets | ||||||||||||
Sealing Products | $ | 534.4 | $ | 528.8 | ||||||||
Engineered Products | 329.8 | 318.5 | ||||||||||
Engine Products and Services | 131.3 | 121.8 | ||||||||||
Corporate | 397.2 | 401.8 | ||||||||||
$ | 1,392.70 | $ | 1,370.90 | |||||||||
Schedule of Long Lived Assets Segment | ' | |||||||||||
Long-Lived Assets | ||||||||||||
United States | $ | 110.1 | $ | 114.1 | ||||||||
France | 30.5 | 23.4 | ||||||||||
Other Europe | 34.3 | 34.7 | ||||||||||
Other foreign | 12.6 | 13.3 | ||||||||||
Total | $ | 187.5 | $ | 185.5 | ||||||||
Garlock_Sealing_Technologies_L1
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Reorganizations [Abstract] | ' | |||||||||||
Schedule of Subsidiary Condensed Combined Statements of Comprehensive Income | ' | |||||||||||
Condensed combined financial information for GST is set forth below, presented on a historical cost basis. | ||||||||||||
GST | ||||||||||||
(Debtor-in-Possession) | ||||||||||||
Condensed Combined Statements of Operations | ||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||
(in millions) | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | $ | 244.8 | $ | 240.1 | $ | 236.1 | ||||||
Cost of sales | 145.3 | 145.3 | 144.7 | |||||||||
Gross profit | 99.5 | 94.8 | 91.4 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative | 41.7 | 45.1 | 45.4 | |||||||||
Asbestos-related | 2.3 | (1.6 | ) | 2.7 | ||||||||
Other | 0.5 | 1.7 | 0.8 | |||||||||
Total operating expenses | 44.5 | 45.2 | 48.9 | |||||||||
Operating income | 55 | 49.6 | 42.5 | |||||||||
Interest income, net | 29.7 | 27.9 | 26.8 | |||||||||
Income before reorganization expenses and income taxes | 84.7 | 77.5 | 69.3 | |||||||||
Reorganization expenses | (44.6 | ) | (31.4 | ) | (17.0 | ) | ||||||
Income before income taxes | 40.1 | 46.1 | 52.3 | |||||||||
Income tax expense | (18.7 | ) | (16.3 | ) | (19.6 | ) | ||||||
Net income | $ | 21.4 | $ | 29.8 | $ | 32.7 | ||||||
Comprehensive income | $ | 20.8 | $ | 30.4 | $ | 31.6 | ||||||
Schedule of Condensed Combined Statements of Cash Flows | ' | |||||||||||
GST | ||||||||||||
(Debtor-in-Possession) | ||||||||||||
Condensed Combined Statements of Cash Flows | ||||||||||||
Years Ended December 31, 2013, 2012 and 2011 | ||||||||||||
(in millions) | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net cash flows from operating activities | $ | 48.2 | $ | 31.9 | $ | 44.2 | ||||||
Investing activities | ||||||||||||
Purchases of property, plant and equipment | (8.7 | ) | (6.9 | ) | (3.3 | ) | ||||||
Net receipts (payments) from loans to affiliates | (12.8 | ) | 0.5 | 13.1 | ||||||||
Net purchases of held-to-maturity securities | (25.0 | ) | (110.0 | ) | — | |||||||
Receipts from (deposits into) restricted cash accounts | 0.9 | 1.4 | (6.5 | ) | ||||||||
Acquisitions, net of cash acquired | — | — | (7.5 | ) | ||||||||
Other | (1.1 | ) | — | — | ||||||||
Net cash used in investing activities | (46.7 | ) | (115.0 | ) | (4.2 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2.3 | ) | 0.4 | (0.8 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | (0.8 | ) | (82.7 | ) | 39.2 | |||||||
Cash and cash equivalents at beginning of year | 43.6 | 126.3 | 87.1 | |||||||||
Cash and cash equivalents at end of year | $ | 42.8 | $ | 43.6 | $ | 126.3 | ||||||
Schedule of Condensed Combined Balance Sheets | ' | |||||||||||
GST | ||||||||||||
(Debtor-in-Possession) | ||||||||||||
Condensed Combined Balance Sheets | ||||||||||||
As of December 31, 2013 and 2012 | ||||||||||||
(in millions) | ||||||||||||
2013 | 2012 | |||||||||||
Assets: | ||||||||||||
Current assets | $ | 314.4 | $ | 168.2 | ||||||||
U.S. Treasury securities | — | 110 | ||||||||||
Asbestos insurance receivable | 101.1 | 120.7 | ||||||||||
Deferred income taxes | 130.4 | 124.8 | ||||||||||
Notes receivable from affiliate | 248.1 | 237.4 | ||||||||||
Other assets | 76.2 | 74.3 | ||||||||||
Total assets | $ | 870.2 | $ | 835.4 | ||||||||
Liabilities and Shareholder’s Equity: | ||||||||||||
Current liabilities | $ | 43.9 | $ | 76.9 | ||||||||
Other liabilities | 58.1 | 10.8 | ||||||||||
Liabilities subject to compromise (A) | 468.4 | 468.4 | ||||||||||
Total liabilities | 570.4 | 556.1 | ||||||||||
Shareholder’s equity | 299.8 | 279.3 | ||||||||||
Total liabilities and shareholder’s equity | $ | 870.2 | $ | 835.4 | ||||||||
(A) | Liabilities subject to compromise include pre-petition unsecured claims which may be resolved at amounts different from those recorded in the condensed combined balance sheets. Liabilities subject to compromise consist principally of asbestos-related claims. GST has undertaken to project the number and ultimate cost of all present and future bodily injury claims expected to be asserted, based on actuarial principles, and to measure probable and estimable liabilities under generally accepted accounting principles. GST has accrued $466.8 million as of December 31, 2013. The estimate indicated for those asbestos-related claims reflects the point in a wide range of possible outcomes determined based on historical facts and circumstances prior to the Petition Date as our estimate of the cost to resolve asbestos-related personal injury cases and claims against GST as they would have been resolved in the state courts or by settlements over a ten-year period from April 1, 2010 through March 31, 2020. GST adjusts this estimate to reflect payments of previously accrued but unpaid legal fees and to reflect the results of appeals. Otherwise, GST does not expect to adjust the estimate unless developments in the Chapter 11 proceeding provide a reasonable basis for a revised estimate. GST intends to use the claims resolution process in Chapter 11 to determine the validity and ultimate amount of its aggregate liability for asbestos-related claims. Due to the uncertainties of asbestos-related litigation and the Chapter 11 process, GST’s ultimate liability could differ materially from the recorded liability. See Note 19, “Commitments and Contingencies – Asbestos.” |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule Of Changes In Carrying Amount Of Product Warranty Liability | ' | |||||||
Changes in the carrying amount of the product warranty liability for the years ended December 31, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
(in millions) | ||||||||
Balance at beginning of year | $ | 4.1 | $ | 3.5 | ||||
Charges to expense | 3.8 | 3.2 | ||||||
Settlements made (primarily payments) | (4.1 | ) | (2.6 | ) | ||||
Balance at end of year | $ | 3.8 | $ | 4.1 | ||||
Schedule Of Future Minimum Lease Payments | ' | |||||||
Future minimum lease payments by year and in the aggregate, under noncancelable operating leases with initial or remaining noncancelable lease terms in excess of one year, consisted of the following at December 31, 2013 (in millions): | ||||||||
2014 | $ | 12.7 | ||||||
2015 | 11 | |||||||
2016 | 8.4 | |||||||
2017 | 7.1 | |||||||
2018 | 6.8 | |||||||
Thereafter | 5.8 | |||||||
Total minimum payments | $ | 51.8 | ||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Schedule of Selected Quarterly Financial Data | ' | |||||||||||||||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||
(in millions, except per share data) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||
Net sales | $ | 286.9 | $ | 311.5 | $ | 305.8 | $ | 301.7 | $ | 276 | $ | 291.7 | $ | 275.5 | $ | 279.3 | ||||||||||||||||
Gross profit | $ | 94.2 | $ | 107.2 | $ | 109.2 | $ | 103 | $ | 92.1 | $ | 98.8 | $ | 85.8 | $ | 91.1 | ||||||||||||||||
Net income | $ | 8.6 | $ | 13.8 | $ | 8 | $ | 10.2 | $ | 5.6 | $ | 11.3 | $ | 5.2 | $ | 5.7 | ||||||||||||||||
Basic earnings per share | $ | 0.41 | $ | 0.67 | $ | 0.39 | $ | 0.5 | $ | 0.27 | $ | 0.54 | $ | 0.25 | $ | 0.28 | ||||||||||||||||
Diluted earnings per share | $ | 0.39 | $ | 0.64 | $ | 0.35 | $ | 0.47 | $ | 0.23 | $ | 0.53 | $ | 0.22 | $ | 0.27 | ||||||||||||||||
Overview_Significant_Accountin2
Overview, Significant Accounting Policies and Recently Issued Accounting Pronouncements - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2005 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Recognized revenues | $2.70 | $2.50 | $1.90 | ' |
Operating income | 86.4 | 107.5 | 101.7 | ' |
Foreign currency transaction gains (losses) | -2.3 | -0.3 | -0.9 | ' |
Total research and development expenditures | 11.3 | 10.8 | 14.6 | ' |
Retentions | 3.5 | 3.6 | ' | ' |
Long-term retentions | 2.7 | 2.9 | ' | ' |
Percentage of inventories were valued by the LIFO method | 39.00% | 37.00% | ' | ' |
Discounted cash flow valuation percentage | 70.00% | ' | ' | ' |
Market Valuation Percentage | 30.00% | ' | ' | ' |
Aggregate principal amount | 181 | ' | ' | ' |
Interest rate, stated percentage | 3.94% | ' | ' | ' |
Convertible Senior Debentures fair value | ' | ' | ' | 111.2 |
Unamortized debt discount | 15.9 | 23.5 | ' | 61.3 |
Debt effective interest rate | 9.50% | ' | ' | ' |
Convertible debt carrying amount | 156.6 | 149 | ' | ' |
Contractual interest coupon expense | 6.8 | 6.8 | 6.8 | ' |
Amortization of debt discount | 7.6 | 6.9 | 6.3 | ' |
Derivative, Notional Amount | 51.1 | 130.4 | ' | ' |
3.9375% Debenture [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Aggregate principal amount | 172.5 | ' | ' | ' |
Interest rate, stated percentage | 3.94% | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Minimum percentage of tax benefit, recognition threshold for the tax position | 50.00% | ' | ' | ' |
Building Improvements [Member] | Minimum [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Property, plant and equipment, in years | '5 years | ' | ' | ' |
Building Improvements [Member] | Maximum [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Property, plant and equipment, in years | '25 years | ' | ' | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Property, plant and equipment, in years | '3 years | ' | ' | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Property, plant and equipment, in years | '10 years | ' | ' | ' |
Contracts Accounted for under Percentage of Completion [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Recognized revenues | 64.3 | 67.3 | 9.6 | ' |
Operating income | $9 | $13.10 | $1.50 | ' |
Finite-Lived Intangible Assets [Member] | Minimum [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Intangible assets estimated useful lives, minimum, in years | '3 years | ' | ' | ' |
Finite-Lived Intangible Assets [Member] | Maximum [Member] | ' | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' | ' |
Intangible assets estimated useful lives, minimum, in years | '25 years | ' | ' | ' |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2011 | Apr. 30, 2012 |
Motorwheel [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' |
Cash paid for purchase | $2 | $228.20 | $85 |
Pre-tax acquisition-related costs | ' | 2.2 | ' |
Pre-tax nonrecurring expenses related to the fair value adjustment to acquisition date inventory | ' | $1.70 | ' |
Acquisitions_Schedule_of_Pro_F
Acquisitions - Schedule of Pro Forma Condensed Consolidated Financial Results of Operations (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Business Combinations [Abstract] | ' |
Pro forma net sales | $1,161.70 |
Pro forma net income | $50.90 |
Other_Income_Expense_Additiona
Other Income (Expense) - Additional Information (Detail) (USD $) | 12 Months Ended | 456 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Employees | ||||
Restructuring and Related Activities [Abstract] | ' | ' | ' | ' |
Restructuring costs incurred | $6.70 | $5 | $1.40 | ' |
Total workforce reductions | 98 | ' | ' | ' |
Legal fees primarily related to the bankruptcy of certain subsidiaries | 2.4 | 1.5 | 0.9 | 400 |
Environmental Remediation Expense | 6.3 | 1.2 | ' | ' |
Guaranteed investment contract value | ' | ' | 21.4 | ' |
Gain on the valuation of guaranteed investment contract | ' | ' | $2.90 | ' |
Other_Income_Expense_Schedule_
Other Income (Expense) - Schedule of Restructuring Reserves (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Beginning balance | $0.90 | $0.60 | $0.90 |
Provision | 6.7 | 5 | 1.4 |
Payments | -4.4 | -4.7 | -1.7 |
Ending balance | 3.2 | 0.9 | 0.6 |
Personnel-Related Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Beginning balance | 0.1 | 0 | 0.7 |
Provision | 5.2 | 2.8 | 0.1 |
Payments | -2.8 | -2.7 | -0.8 |
Ending balance | 2.5 | 0.1 | 0 |
Facility Relocation And Closure Costs [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Beginning balance | 0.8 | 0.6 | 0.2 |
Provision | 1.5 | 2.2 | 1.3 |
Payments | -1.6 | -2 | -0.9 |
Ending balance | $0.70 | $0.80 | $0.60 |
Other_Income_Expense_Schedule_1
Other Income (Expense) - Schedule of Restructuring Costs by Reportable Segment (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Expenses | $6.70 | $5 | $1.40 |
Sealing Products [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Expenses | 0.9 | 1.5 | 1.3 |
Engineered Products [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Expenses | 3.7 | 3.5 | 0.1 |
Engine Products And Services [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring Expenses | $2.10 | $0 | $0 |
Income_Taxes_Schedule_of_Incom
Income Taxes - Schedule of Income Before Income Tax Domestic and Foreign (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic | ($4.30) | $27.70 | $22.60 |
Foreign | 40.1 | 35.8 | 42.4 |
Income before income taxes | $35.80 | $63.50 | $65 |
Income_Taxes_Summary_of_Income
Income Taxes - Summary of Income Tax Expense in Consolidated Statements of Operations from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal | ($3.70) | $9.30 | $4.70 |
Foreign | 10 | 5.5 | 11.3 |
State | 0.4 | 1.8 | 0.5 |
Current income tax expense | 6.7 | 16.6 | 16.5 |
Federal | 3.3 | 3 | 2.7 |
Foreign | -1.5 | 3.5 | 1.5 |
State | -0.1 | -0.6 | 0.1 |
Deferred income tax expense | 1.7 | 5.9 | 4.3 |
Total | $8.40 | $22.50 | $20.80 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Net operating losses and tax credits | $11.30 | $12.30 |
Accrual for post-retirement benefits other than pensions | 3 | 4.5 |
Environmental reserves | 6.2 | 4.5 |
Retained liabilities of previously owned businesses | 5.3 | 8.5 |
Accruals and reserves | 5.6 | 5.4 |
Pensions | 14.5 | 13.6 |
Minimum pension liability | 16.4 | 38.3 |
Inventories | 6.7 | 6 |
Interest | 7.4 | 6.3 |
Compensation and benefits | 11.8 | 9.3 |
Gross deferred income tax assets | 88.2 | 108.7 |
Valuation allowance | -17.6 | -17.7 |
Total deferred income tax assets | 70.6 | 91 |
Depreciation and amortization | -37.9 | -36.1 |
GST deconsolidation gain | -21.4 | -21.4 |
Total deferred income tax liabilities | 59.3 | 57.5 |
Net deferred tax assets | $11.30 | $33.50 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | 2 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Feb. 24, 2014 |
Subsequent Event | |||||
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Foreign net operating loss carryforwards | $24.90 | ' | ' | ' | ' |
Net operating loss carryforwards during period | 9.2 | ' | ' | ' | ' |
Indefinite operating loss carryforwards | 15.7 | ' | ' | ' | ' |
State tax net operating loss carryforwards | 2.9 | ' | ' | ' | ' |
Deferred tax assets, valuation allowance | 17.6 | 17.7 | ' | ' | ' |
Foreign subsidiaries undistributed earnings | 220 | ' | ' | ' | ' |
Amount of withholding tax that would be payable on remittance of the entire amount | 2.2 | ' | ' | ' | ' |
Gross unrecognized tax benefits | 5.9 | 6.3 | 4.8 | 2.4 | ' |
Effective tax rate impact if ultimately recognized | 4.5 | 3.2 | ' | ' | ' |
Amount accrued for interest and penalties | 0.8 | 0.5 | ' | ' | ' |
Interest and penalties related to unrecognized tax benefits | 0.1 | -0.2 | -0.2 | ' | ' |
Gross unrecognized tax benefits | 2 | ' | ' | ' | ' |
Expected change in unrecognized tax benefits | ($3.20) | ' | ' | ' | $0.70 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Effective Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
US taxation of foreign profits, net of foreign tax credits | 3.00% | -4.50% | -3.50% |
Research and employment tax credits | -7.20% | 0.00% | -2.00% |
State and local taxes | 7.50% | 1.80% | 0.90% |
Domestic production activities | 0.00% | -2.80% | -2.70% |
Foreign tax rate differences | -8.50% | -2.20% | -3.60% |
Uncertain tax positions and prior adjustments | -5.50% | -0.40% | 1.80% |
Statutory changes in tax rates | -1.30% | -0.40% | -0.80% |
Valuation allowance | -6.00% | 7.50% | 4.80% |
Nondeductible expenses | 3.50% | 1.70% | 2.00% |
Other items, net | 2.90% | -0.40% | 0.20% |
Effective income tax rate | 23.40% | 35.30% | 32.10% |
Income_Taxes_Schedule_of_Recon
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Balance at beginning of year | $6.30 | $4.80 | $2.40 |
Additions as a result of acquisitions | 0 | 0.1 | 0.5 |
Additions based on tax positions related to the current year | 1 | 0.9 | 0.7 |
Additions for tax positions of prior years | 2.6 | 2.7 | 3.1 |
Reductions for tax positions of prior years | -0.8 | -0.2 | -0.1 |
Reductions as a result of a lapse in the statute of limitations | -3.4 | -1.9 | -1.5 |
Reductions as a result of audit settlements | 0 | -0.1 | -0.3 |
Changes due to fluctuations in foreign currency | 0.2 | ' | ' |
Balance at end of year | $5.90 | $6.30 | $4.80 |
Earnings_Per_Share_Schedule_of
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $5.20 | $5.60 | $8 | $8.60 | $5.70 | $11.30 | $10.20 | $13.80 | $27.40 | $41 | $44.20 |
Weighted-average shares - basic | ' | ' | ' | ' | ' | ' | ' | ' | 20.9 | 20.7 | 20.5 |
Share-based awards | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | 0.4 | 0.3 |
Convertible debentures and related warrants | ' | ' | ' | ' | ' | ' | ' | ' | 2.4 | 0.5 | 0.7 |
Weighted-average shares - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 23.5 | 21.6 | 21.5 |
Basic (in usd per share) | $0.25 | $0.27 | $0.39 | $0.41 | $0.28 | $0.54 | $0.50 | $0.67 | $1.31 | $1.99 | $2.15 |
Diluted (in usd per share) | $0.22 | $0.23 | $0.35 | $0.39 | $0.27 | $0.53 | $0.47 | $0.64 | $1.17 | $1.90 | $2.06 |
Inventories_Schedule_of_Invent
Inventories - Schedule of Inventories (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished products | $84.30 | $72 |
Work in process | 36 | 33.4 |
Raw materials and supplies | 42.8 | 36.3 |
Inventory Gross | 163.1 | 141.7 |
Reserve to reduce certain inventories to LIFO basis | -14 | -12.4 |
Manufacturing inventories | 149.1 | 129.3 |
Incurred costs related to long-term contracts | 14.2 | 16.6 |
Progress payments related to long-term contracts | -25.6 | -15.1 |
Net balance associated with completed-contract inventories | 11.4 | 1.5 |
Total inventories | $149.10 | $130.80 |
Inventories_Inventories_Additi
Inventories Inventories - Additional Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Retainage Deposit | $6.10 | $2.90 |
Progress Payments Netted Against Inventory for Long-term Contracts or Programs | 25.6 | 15.1 |
Amount of Deferred Costs Related to Long-term Contracts | 14.2 | 16.6 |
Inventory, Net of Allowances, Customer Advances and Progress Billings | $11.40 | $1.50 |
PercentageofCompletion_LongTer2
Percentage-of-Completion Long-Term Contracts Costs and Billings on Uncompleted Contracts - Schedule of Information Regarding Contracts Accounted for Under Percentage-of-Completion Method (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Cumulative Revenues On Uncompleted POC Contracts | $141.10 | $76.90 |
Cumulative billings on Uncompleted POC Contracts | 146.6 | 71.2 |
Revenues Billings On Uncompleted Contracts | -5.5 | 5.7 |
RetainagedDeposit | $4.50 | $5.20 |
PercentageofCompletion_LongTer3
Percentage-of-Completion Long-Term Contracts Cost and Billings on Uncompleted Contracts - Schedule of Uncompleted Contracts Reflected in Consolidated Balance Sheets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Accounts receivable (POC revenue recognized In excess of Billings) | $4.30 | $10.30 |
Accrued expenses (POC billings where revenue has not yet been earned) | -9.8 | -4.6 |
Revenues Billings On Uncompleted Contracts | ($5.50) | $5.70 |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Land | $9.20 | $5.80 |
Buildings and improvements | 97.1 | 96.3 |
Machinery and equipment | 370.1 | 341.6 |
Construction in progress | 16.7 | 25.3 |
Gross | 493.1 | 469 |
Less accumulated depreciation | -305.6 | -283.5 |
Total | $187.50 | $185.50 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Detail) (USD $) | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Sealing Products [Member] | Sealing Products [Member] | Engineered Products [Member] | Engineered Products [Member] | Engine Products And Services [Member] | Engine Products And Services [Member] | Engine Products And Services [Member] | |||
Goodwill And Other Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross goodwill, beginning balance | $356.90 | $337.70 | $180.60 | $164.10 | $169.20 | $166.50 | $7.10 | $7.10 | $7.10 |
Accumulated impairment losses | -136.5 | -136.5 | -27.8 | -27.8 | -108.7 | -108.7 | ' | ' | ' |
Goodwill, beginning balance | 220.4 | 201.2 | 152.8 | 136.3 | 60.5 | 57.8 | 7.1 | 7.1 | 7.1 |
Foreign currency translation | 0 | 2.4 | 0.9 | 0.6 | -0.9 | 1.8 | ' | ' | ' |
Acquisitions | -0.2 | 16.8 | 0 | 15.9 | -0.2 | 0.9 | ' | ' | ' |
Gross goodwill, ending balance | 356.7 | 356.9 | 181.5 | 180.6 | 168.1 | 169.2 | 7.1 | 7.1 | 7.1 |
Accumulated impairment losses | -136.5 | -136.5 | -27.8 | -27.8 | -108.7 | -108.7 | ' | ' | ' |
Goodwill, ending balance | $220.20 | $220.40 | $153.70 | $152.80 | $59.40 | $60.50 | $7.10 | $7.10 | $7.10 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized, Gross Carrying Amount | $302.20 | $300.60 |
Amortized, Accumulated Amortization | 138.6 | 114.5 |
Intangible Assets, Gross (Excluding Goodwill) | 338.7 | 337 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized, Gross Carrying Amount | 191.2 | 190 |
Amortized, Accumulated Amortization | 85 | 70.7 |
Existing technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized, Gross Carrying Amount | 53.9 | 53.8 |
Amortized, Accumulated Amortization | 18.8 | 13.3 |
Trademarks [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized, Gross Carrying Amount | 33.7 | 33.2 |
Amortized, Accumulated Amortization | 16.9 | 14.8 |
Indefinite-Lived, Gross Carrying Amount | 36.5 | 36.4 |
Other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortized, Gross Carrying Amount | 23.4 | 23.6 |
Amortized, Accumulated Amortization | $17.90 | $15.70 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $24.10 | $24.30 | $19.80 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense of Intangible Assets (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2014 | $22.80 |
2015 | 20.8 |
2016 | 18.6 |
2017 | 17.5 |
2018 | $17.30 |
Accrued_Expenses_Schedule_of_A
Accrued Expenses - Schedule of Accrued Expenses (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Salaries, wages and employee benefits | $45.30 | $47.20 |
Interest | 30 | 28.8 |
Contract advances | 23.7 | 7.1 |
Income and other taxes | 10.8 | 13.1 |
Other | 31.1 | 25.6 |
Total accrued expenses | $140.90 | $121.80 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 01, 2010 | Jan. 01, 2010 | Dec. 31, 2013 | Dec. 31, 2012 |
Garlock Sealing Technologies [Member] | Garlock Sealing Technologies [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | Subsidiary of Common Parent [Member] | Intercompany Notes [Member] | Intercompany Notes [Member] | ||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term borrowings from GST | $22 | $10.10 | ' | $22 | $10.10 | ' | ' | ' | ' |
Amended and Restated Promissory Note | 259.3 | 248.1 | ' | ' | ' | 73.4 | 153.8 | ' | ' |
Interest rate, stated percentage | 3.94% | ' | ' | ' | ' | ' | ' | 11.00% | ' |
Intercompany notes, interest payable in cash, percentage | ' | ' | ' | ' | ' | ' | ' | 6.50% | ' |
Intercompany notes, interest paid in kind added to principal amount, percentage | ' | ' | ' | ' | ' | ' | ' | 4.50% | ' |
Interest | 25.1 | 24.3 | 22.9 | 16.2 | 15.4 | ' | ' | ' | ' |
Intercompany notes, interest paid in kind added to principal balance, value | 11.2 | 10.7 | ' | ' | ' | ' | ' | 11.2 | 10.7 |
Notional amount outstanding foreign exchange forward contracts | $51.10 | $130.40 | ' | $3.20 | $21.90 | ' | ' | ' | ' |
Related_Party_Transactions_Sch
Related Party Transactions - Schedule of Amounts Included in Financial Statements Arising from Transactions with GST (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Related Party Transaction [Line Items] | ' | ' | ' |
Accrued interest | $30 | $28.80 | ' |
Accounts Receivable [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due from GST | 18.3 | 20.5 | ' |
Other Assets [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Income tax receivable | 46.9 | 32.8 | ' |
Accounts Payable [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Due to GST | 6.7 | 5 | ' |
Accrued Expenses [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Accrued interest | 28.5 | 27.4 | ' |
Net Sales [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Sales to GST | 24.4 | 26.1 | 24.4 |
Cost of Sales [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Purchases from GST | 26.5 | 20.1 | 21.7 |
Interest Expense [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Interest expense | $29.10 | $27.80 | $26.70 |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt - Schedule of Long Term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $165.10 | $185.30 |
Less current maturities of long-term debt | 156.6 | 1 |
Long-term debt, net | 8.5 | 184.3 |
Convertible Debentures [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 156.6 | 149 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 7.6 | 34.2 |
Other Notes Payables [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $0.90 | $2.10 |
LongTerm_Debt_Additional_Infor
Long-Term Debt - Additional Information (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
D | |
Line of Credit Facility [Line Items] | ' |
Aggregate principal amount | $181,000,000 |
Interest rate of debentures | 3.94% |
Initial conversion rate, shares | 29.5972 |
Principal amount of debentures | 1,000 |
Initial conversion price, per share | $33.79 |
Minimum trading days required for common stock conversion | 20 |
Number of consecutive trading days in measurement period | '30 days |
Percentage of current conversion price | 130.00% |
Effective conversion price of the debentures | $46.78 |
Credit facility maximum availability | 225,000,000 |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Letter of credit outstanding | 4,800,000 |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Credit facility maximum availability | 175,000,000 |
Credit facility borrowing capacity | 117,100,000 |
Credit facility borrowings outstanding | 7,600,000 |
3.9375% Debenture [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Aggregate principal amount | $172,500,000 |
Interest rate of debentures | 3.94% |
Prime Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Adjusted LIBOR rate interest spread | 1.00% |
Libor Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Adjusted LIBOR rate interest spread | 2.00% |
Minimum [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Percentage of current conversion price | 98.00% |
Minimum [Member] | Prime Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Adjusted LIBOR rate interest spread | 0.75% |
Minimum [Member] | Libor Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Adjusted LIBOR rate interest spread | 1.75% |
Maximum [Member] | Prime Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Adjusted LIBOR rate interest spread | 1.25% |
Maximum [Member] | Libor Rate [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Adjusted LIBOR rate interest spread | 2.25% |
Long_Term_Debt_Schedule_of_Fut
Long Term Debt - Schedule of Future Principal Payments on Long-Term Debt (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $0.20 |
2015 | 180.2 |
2016 | 0.1 |
2017 | 0.1 |
2018 | 0.1 |
Thereafter | 0.3 |
Total | $181 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash equivalents | $21.70 | $21.90 |
Assets measured at fair value | 30.2 | 29.4 |
Liabilities measured at fair value | 8 | 7.4 |
European Government Money Market [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash equivalents | 21.7 | 21.9 |
Guaranteed Investment Contract [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Assets measured at fair value | 2.8 | 2.6 |
Foreign Currency Derivatives [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Assets measured at fair value | 0.4 | 0.4 |
Liabilities measured at fair value | 0.4 | 0.9 |
Deferred Compensation [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Assets measured at fair value | 5.3 | 4.5 |
Liabilities measured at fair value | 7.6 | 6.5 |
Level 1 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash equivalents | 21.7 | 21.9 |
Assets measured at fair value | 27 | 26.4 |
Liabilities measured at fair value | 7.6 | 6.5 |
Level 1 [Member] | European Government Money Market [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Cash equivalents | 21.7 | 21.9 |
Level 1 [Member] | Deferred Compensation [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Assets measured at fair value | 5.3 | 4.5 |
Liabilities measured at fair value | 7.6 | 6.5 |
Level 2 [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Assets measured at fair value | 3.2 | 3 |
Liabilities measured at fair value | 0.4 | 0.9 |
Level 2 [Member] | Guaranteed Investment Contract [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Assets measured at fair value | 2.8 | 2.6 |
Level 2 [Member] | Foreign Currency Derivatives [Member] | ' | ' |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ' | ' |
Assets measured at fair value | 0.4 | 0.4 |
Liabilities measured at fair value | $0.40 | $0.90 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Long-term debt, Carrying Value | $165.10 | $185.30 |
Notes payable to GST, Carrying Value | 259.3 | 248.1 |
Long-term Debt, Fair Value | 307.6 | 261.6 |
Notes payable to GST, Fair Value | $277.80 | $268.20 |
Pensions_and_Postretirement_Be2
Pensions and Postretirement Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2006 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Minimum age of salaried employees with defined pension plans, in years | ' | ' | ' | '40 years |
Percentage of matching contributions for eligible employees of their eligible earnings | 6.00% | ' | ' | ' |
Additional employer contribution for those employees whose defined pension plan benefits were frozen | 2.00% | ' | ' | ' |
Matching contributions under plans | $7.40 | $6.30 | $6 | ' |
Cash contributed by the entity to its U.S. pension plans | 22.5 | 11.3 | 5.9 | ' |
Company anticipates future contributions | 20.4 | ' | ' | ' |
Projected benefit obligation for defined benefit pension plans | 245.3 | 270.5 | ' | ' |
Accumulated benefit obligation for defined benefit pension plans | 235.1 | 257.7 | ' | ' |
Fair value of plan assets for defined benefit pension plans | 197.6 | 157.4 | ' | ' |
1% point change in the assumed health-care cost trend rate would have an impact on net periodic benefit cost | 0.1 | ' | ' | ' |
1% point change in the assumed health-care cost trend rate would have an impact on benefit obligations | 0.1 | ' | ' | ' |
Guaranteed Investment Contract [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Cash contributed by the entity to its U.S. pension plans | ' | ' | 21.4 | ' |
Foreign Pension Plans, Defined Benefit [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Company anticipates future contributions | 0.5 | ' | ' | ' |
Net Loss [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Estimated prior service cost for other defined benefit postretirement plans that will be amortized from AOCI into net periodic benefit cost over next fiscal year | 2.7 | ' | ' | ' |
Prior Service Cost [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Estimated prior service cost for other defined benefit postretirement plans that will be amortized from AOCI into net periodic benefit cost over next fiscal year | 0.1 | ' | ' | ' |
Defined Benefit Pension Plans [Member] | ' | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' |
Accumulated benefit obligation for all existing plans | 236 | 258.6 | ' | ' |
Estimated prior service cost for other defined benefit postretirement plans that will be amortized from AOCI into net periodic benefit cost over next fiscal year | 0.1 | ' | ' | ' |
Discount rate | 5.00% | ' | ' | ' |
Basis point decrease (increase) in discount rate | 25 | ' | ' | ' |
Pension expense per year | $1 | ' | ' | ' |
Pensions_and_Postretirement_Be3
Pensions and Postretirement Benefits - Schedule of Change in Projected Benefit Obligations (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Projected benefit obligations at beginning of year | $271.30 | $244.10 |
Service cost | 6.3 | 5.7 |
Interest cost | 10.6 | 10.5 |
Actuarial loss (gain) | -33 | 17.9 |
Benefits paid | -8.3 | -7.1 |
Other | -0.7 | 0.2 |
Projected benefit obligations at end of year | 246.2 | 271.3 |
Other Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Projected benefit obligations at beginning of year | 5.4 | 5.3 |
Service cost | 0.4 | 0.3 |
Interest cost | 0.2 | 0.2 |
Actuarial loss (gain) | -0.9 | 0.4 |
Benefits paid | -0.4 | -0.8 |
Projected benefit obligations at end of year | $4.70 | $5.40 |
Pensions_and_Postretirement_Be4
Pensions and Postretirement Benefits - Schedule of Change in Plan Assets and Underfunded Status at End of Year (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Fair value of plan assets at end of year | $198.60 | $158.30 |
Pension Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Fair value of plan assets at beginning of year | 158.3 | 135.4 |
Actual return on plan assets | 26.8 | 19.7 |
Administrative expenses | -1 | -1.2 |
Benefits paid | -8.3 | -7.1 |
Company contributions | 22.8 | 11.5 |
Fair value of plan assets at end of year | 198.6 | 158.3 |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | -47.6 | -113 |
Other Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Benefits paid | -0.4 | -0.8 |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | ($4.70) | ($5.40) |
Pensions_and_Postretirement_Be5
Pensions and Postretirement Benefits - Schedule of Projected Benefit Obligations Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Current liabilities | ($0.20) | ($0.30) |
Long-term liabilities | -47.4 | -112.7 |
Amounts recognized in the consolidated balance sheets | -47.6 | -113 |
Other Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Current liabilities | -1.8 | -0.4 |
Long-term liabilities | -2.9 | -5 |
Amounts recognized in the consolidated balance sheets | ($4.70) | ($5.40) |
Pensions_and_Postretirement_Be6
Pensions and Postretirement Benefits - Schedule of Pre-Tax Charges Recognized in Accumulated Other Comprehensive Income Loss (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Net actuarial loss | $43.60 | $99.50 |
Prior service cost | 1.2 | 1.4 |
Pre-tax charges recognized in accumulated other comprehensive income (loss) | 44.8 | 100.9 |
Other Benefits [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Net actuarial loss | 0.1 | 1.1 |
Prior service cost | 0.1 | 0.3 |
Pre-tax charges recognized in accumulated other comprehensive income (loss) | $0.20 | $1.40 |
Pensions_and_Postretirement_Be7
Pensions and Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Service cost | $6.30 | $5.70 | ' |
Interest cost | 10.6 | 10.5 | ' |
Pension Benefits [Member] | Net Periodic Benefit Cost [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Service cost | 6.3 | 5.7 | 4.8 |
Interest cost | 10.6 | 10.5 | 10.7 |
Expected return on plan assets | -13.2 | -11 | -9.4 |
Amortization of prior service cost | 0.2 | 0.3 | 0.3 |
Amortization of net loss | 9.4 | 9.8 | 4.7 |
Deconsolidation of GST | -1.8 | -2.2 | -1.5 |
Net periodic benefit cost | 11.5 | 13.1 | 9.6 |
Other Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Service cost | 0.4 | 0.3 | ' |
Interest cost | 0.2 | 0.2 | ' |
Other Benefits [Member] | Net Periodic Benefit Cost [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Service cost | 0.4 | 0.4 | 0.7 |
Interest cost | 0.2 | 0.2 | 0.2 |
Amortization of prior service cost | 0.1 | 0.1 | 0.1 |
Settlement | 0.1 | 0.1 | ' |
Net periodic benefit cost | $0.80 | $0.80 | $1 |
Pensions_and_Postretirement_Be8
Pensions and Postretirement Benefits - Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Other adjustment | ($47.60) | $10.80 | $46.50 |
Pension Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Net loss (gain) | -46.5 | 9.3 | 46.2 |
Prior service cost | 0 | 0.4 | 0 |
Amortization of net loss | 9.4 | 9.8 | 4.7 |
Amortization of prior service cost | -0.2 | -0.3 | -0.3 |
Other adjustment | 0 | 0.8 | 0 |
Total recognized in other comprehensive income | -56.1 | 0.4 | 41.2 |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss | -44.6 | 13.5 | 50.8 |
Other Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Net loss (gain) | -1 | 0.4 | 0.3 |
Prior service cost | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0 |
Amortization of prior service cost | -0.1 | -0.1 | -0.1 |
Other adjustment | -0.1 | -0.1 | 0 |
Total recognized in other comprehensive income | -1.2 | 0.2 | 0.2 |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Loss | ($0.40) | $1 | $1.20 |
Pensions_and_Postretirement_Be9
Pensions and Postretirement Benefits - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Benefit Obligations, Discount rate | 5.00% | 4.00% | 4.25% |
Benefit Obligations, Rate of compensation increase | 3.00% | 3.00% | 4.00% |
Net Periodic Benefit Cost, Discount rate | 4.00% | 4.25% | 5.50% |
Net Periodic Benefit Cost, Expected long-term return on plan assets | 8.00% | 8.00% | 8.00% |
Net Periodic Benefit Cost, Rate of compensation increase | 3.00% | 4.00% | 4.00% |
Other Benefits [Member] | ' | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' |
Benefit Obligations, Discount rate | 5.00% | 4.25% | 4.25% |
Benefit Obligations, Rate of compensation increase | ' | 4.00% | 4.00% |
Net Periodic Benefit Cost, Discount rate | 4.00% | 4.25% | 5.50% |
Net Periodic Benefit Cost, Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Recovered_Sheet1
Pensions and Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' |
Health care cost trend rate assumed for next year | 7.20% | 7.50% |
Rate to which the cost trend rate is assumed to decline (the ultimate rate) | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | '2024 | '2024 |
Recovered_Sheet2
Pensions and Postretirement Benefits - Schedule of Asset Allocation for Pension Plans and Target Allocation by Asset Category (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Target Allocation 2014 [Member] | Equity Securities [Member] | Equity Securities [Member] | Equity Securities [Member] | Fixed Income [Member] | Fixed Income [Member] | Fixed Income [Member] | |||
Target Allocation 2014 [Member] | Target Allocation 2014 [Member] | ||||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Target Allocation | ' | ' | 100.00% | ' | ' | 55.00% | ' | ' | 45.00% |
Plan Assets | 100.00% | 100.00% | ' | 56.00% | 65.00% | ' | 44.00% | 35.00% | ' |
Recovered_Sheet3
Pensions and Postretirement Benefits - Schedule of Fair Value of Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Defined benefit plan investment | $198.60 | $158.30 |
Mutual Funds - U.S. Equity [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Defined benefit plan investment | 71.2 | 77 |
Fixed Income Treasury And Money Market [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Defined benefit plan investment | 64.4 | 31.3 |
Mutual Funds - International Equity [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Defined benefit plan investment | 39.3 | 26.7 |
Guaranteed Investment Contract [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Defined benefit plan investment | 23 | 22.7 |
Cash Equivalents [Member] | ' | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' | ' |
Defined benefit plan investment | $0.70 | $0.60 |
Recovered_Sheet4
Pensions and Postretirement Benefits - Schedule of Benefit Payments Reflecting Expected Future Service as Appropriate Expected to be Paid (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
2014 | $9.60 |
2015 | 10.1 |
2016 | 11 |
2017 | 12.4 |
2018 | 13.6 |
Years 2019 - 2023 | 80.3 |
Other Benefits [Member] | ' |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ' |
2014 | 1.8 |
2015 | 0.2 |
2016 | 0.2 |
2017 | 0.2 |
2018 | 0.2 |
Years 2019 - 2023 | $2.10 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Components (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Accumulated Other Comprehinsive Income [Roll Forward] | ' |
Beginning balance | ($23) |
Other comprehensive income before reclassifications | 30.7 |
Amounts reclassified from accumulated other comprehensive income (loss) | 6.7 |
Net current-period other Comprehensive Income (Loss), Net of Tax | 37.4 |
Ending balance | 14.4 |
Unrealized Translation Adjustments [Member] | ' |
Accumulated Other Comprehinsive Income [Roll Forward] | ' |
Beginning balance | 41.6 |
Other comprehensive income before reclassifications | 1 |
Net current-period other Comprehensive Income (Loss), Net of Tax | 1 |
Ending balance | 42.6 |
Pension and Other Postretirement Plans [Member] | ' |
Accumulated Other Comprehinsive Income [Roll Forward] | ' |
Beginning balance | -64 |
Other comprehensive income before reclassifications | 29.7 |
Amounts reclassified from accumulated other comprehensive income (loss) | 6.1 |
Net current-period other Comprehensive Income (Loss), Net of Tax | 35.8 |
Ending balance | -28.2 |
Gains and Losses on Cash Flow Hedges [Member] | ' |
Accumulated Other Comprehinsive Income [Roll Forward] | ' |
Beginning balance | -0.6 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.6 |
Net current-period other Comprehensive Income (Loss), Net of Tax | 0.6 |
Ending balance | $0 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | ($8.40) | ($22.50) | ($20.80) |
Net income | 5.2 | 5.6 | 8 | 8.6 | 5.7 | 11.3 | 10.2 | 13.8 | 27.4 | 41 | 44.2 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Pension and Other Postretirement Plans [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actuarial losses | ' | ' | ' | ' | ' | ' | ' | ' | 9.4 | ' | ' |
Prior service costs | ' | ' | ' | ' | ' | ' | ' | ' | 0.3 | ' | ' |
Total before tax | ' | ' | ' | ' | ' | ' | ' | ' | 9.7 | ' | ' |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -3.6 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 6.1 | ' | ' |
Foreign Exchange Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains and Losses on Cash Flow Hedges [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -0.4 | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | ' | ' |
Equity_Compensation_Plan_Addit
Equity Compensation Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares pursuant to various market and performance-based incentive awards | 4.3 | ' | ' |
Shares available for future awards | 0.5 | ' | ' |
Percentage of fair market value on the date of grant | 100.00% | ' | ' |
Consideration received from option exercises under the Plan | $0 | $200,000 | $500,000 |
Tax benefit realized for the tax deductions from option exercises totaled | 0 | 1,500,000 | 200,000 |
Annual amount of shares granted to non-employee directors, value | 75,000 | ' | ' |
Cash payments used to settle phantom shares | 400,000 | 300,000 | 600,000 |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share units awards vest period | '3 years | ' | ' |
Unrecognized compensation cost | 3,700,000 | ' | ' |
Unrecognized compensation cost expected to be recognized over a weighted average period, years | '1 year 4 months 24 days | ' | ' |
Performance Shares [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost | 1,600,000 | ' | ' |
Unrecognized compensation cost expected to be recognized over a weighted average period, years | '1 year 6 months 1 day | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost | 900,000 | ' | ' |
Unrecognized compensation cost expected to be recognized over a weighted average period, years | '2 years 2 months 12 days | ' | ' |
Employee Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share units awards vest period | '10 years | ' | ' |
Nonvested Stock Option [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost | 200,000 | ' | ' |
Non-Employee Directors Compensation Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Compensation expense | $1,300,000 | $900,000 | $0 |
Equity_Compensation_Plan_Summa
Equity Compensation Plan - Summary of Restricted Share Units Activity, Performance Share Activity and Restricted Stock Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Units (RSUs) [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Nonvested Shares, Ending Balance | 216,316 | 302,487 | 368,850 |
Granted, Shares | 99,174 | 83,841 | 67,454 |
Vested, Shares | -141,985 | -98,834 | ' |
Forfeited, Shares | -24,651 | -19,127 | -13,946 |
Shares settled for cash, shares | -18,709 | -32,243 | -2,263 |
Nonvested shares, Beginning Balance | 302,487 | 368,850 | 317,605 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning Balance | $29.43 | $23.24 | $18.91 |
Granted, Weighted-Average Grant Date Fair Value | $44.97 | $37.65 | $42.07 |
Vested, Weighted-Average Grant Date Fair Value | $20.93 | $18.80 | ' |
Forfeited, Weighted-Average Grant Date Fair Value | $41.24 | $31.65 | $25.04 |
Shares settled for cash, Weighted-Average Grant Date Fair Value | $47.13 | $41.88 | $39.56 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending Balance | $41.77 | $29.43 | $23.24 |
Performance Shares [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Nonvested Shares, Ending Balance | 266,778 | 219,202 | 380,148 |
Granted, Shares | 169,872 | 137,382 | 93,488 |
Vested, Shares | -70,381 | -275,336 | 0 |
Forfeited, Shares | -40,930 | -22,992 | -15,408 |
Achievement level adjustment, shares | -10,985 | ' | ' |
Nonvested shares, Beginning Balance | 219,202 | 380,148 | 302,068 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning Balance | $39.52 | $28.54 | $24.10 |
Granted, Weighted-Average Grant Date Fair Value | $44.63 | $37.65 | $42.30 |
Vested, Weighted-Average Grant Date Fair Value | $42.30 | $24.10 | $0 |
Forfeited, Weighted-Average Grant Date Fair Value | $41.38 | $31.48 | $25.03 |
Achievement level adjustment, Grant Date Fair Value | $37.65 | ' | ' |
Nonvested, Weighted-Average Grant Date Fair Value, Ending Balance | $41.62 | $39.52 | $28.54 |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Nonvested Shares, Ending Balance | 30,080 | 40,584 | 43,417 |
Granted, Shares | 11,330 | 15,000 | 3,750 |
Vested, Shares | -21,834 | -17,833 | -97,436 |
Nonvested shares, Beginning Balance | 40,584 | 43,417 | 137,103 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning Balance | $37.27 | $34.69 | $32.35 |
Granted, Weighted-Average Grant Date Fair Value | $55.09 | $41.47 | $39.25 |
Vested, Weighted-Average Grant Date Fair Value | $34.04 | $34.55 | $31.84 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending Balance | $46.32 | $37.27 | $34.69 |
Equity_Compensation_Plan_Sched
Equity Compensation Plan - Schedule of Information With Respect to Stock Options (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options Outstanding | 125,288 | 125,288 |
Stock Options Exercisable | 100,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $36.10 | $36.10 |
Weighted Average Remaining Contractual Life | '4 years 10 months 6 days | ' |
Exercise price range, upper range limit | $40 | ' |
Exercise price range, lower range limit | $40 | ' |
Under $40.00 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options Outstanding | 100,000 | ' |
Stock Options Exercisable | 100,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $34.55 | ' |
Weighted Average Remaining Contractual Life | '4 years 3 months 11 days | ' |
Over $40.00 [Member] | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' |
Stock Options Outstanding | 25,288 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $42.24 | ' |
Weighted Average Remaining Contractual Life | '7 years 1 month 13 days | ' |
Equity_Compensation_Plan_Summa1
Equity Compensation Plan - Summary of Option Activity Under Plan (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Share Options Outstanding, Beginning Balance | 125,288 |
Share Options Outstanding, Exercised | 0 |
Share Options Outstanding, Ending Balance | 125,288 |
Weighted Average Exercise Price, Beginning Balance | $36.10 |
Weighted Average Exercise Price, Exercised | $0 |
Weighted Average Exercise Price, Ending Balance | $36.10 |
Equity_Compensation_Plan_Sched1
Equity Compensation Plan - Schedule of Intrinsic Value Related to Stock Options (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Options outstanding | $2.70 | $0.60 | $0.80 |
Options exercisable | 2.3 | 0.6 | 0.8 |
Options exercised | $0 | $1.20 | $2.10 |
Equity_Compensation_Plan_Sched2
Equity Compensation Plan - Schedule of Equity Based Compensation (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Compensation expense | $6 | $7.30 | $6.60 |
Related income tax benefit | $2.20 | $2.70 | $2.50 |
Business_Segment_Information_A
Business Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment | |||
Segment Reporting [Abstract] | ' | ' | ' |
Number Of Operating Segments | 3 | ' | ' |
Percentage of net sales | 10.00% | 10.00% | 10.00% |
Business_Segment_Information_S
Business Segment Information - Schedule of Segment Operating Results and Other Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total product segment sales | $275.50 | $276 | $305.80 | $286.90 | $279.30 | $291.70 | $301.70 | $311.50 | $1,144.20 | $1,184.20 | $1,105.50 |
Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | -2.7 | -2.5 | -1.9 |
Segment profit | ' | ' | ' | ' | ' | ' | ' | ' | 86.4 | 107.5 | 101.7 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -44.3 | -42.8 | -39.6 |
Other expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -6.3 | -1.2 | 2.9 |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 35.8 | 63.5 | 65 |
Sealing Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total product segment sales | ' | ' | ' | ' | ' | ' | ' | ' | 622.9 | 609.1 | 534.9 |
Segment profit | ' | ' | ' | ' | ' | ' | ' | ' | 97.1 | 88.8 | 81.2 |
Engineered Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total product segment sales | ' | ' | ' | ' | ' | ' | ' | ' | 356.4 | 363 | 386.7 |
Segment profit | ' | ' | ' | ' | ' | ' | ' | ' | 17.6 | 20.5 | 29.2 |
Engine Products And Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total product segment sales | ' | ' | ' | ' | ' | ' | ' | ' | 167.6 | 214.6 | 185.8 |
Segment profit | ' | ' | ' | ' | ' | ' | ' | ' | 14 | 39.2 | 30.6 |
Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total product segment sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,146.90 | 1,186.70 | 1,107.40 |
Segment profit | ' | ' | ' | ' | ' | ' | ' | ' | 128.7 | 148.5 | 141 |
Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment profit | ' | ' | ' | ' | ' | ' | ' | ' | -33.3 | -32.3 | -32.6 |
Other expense, net | ' | ' | ' | ' | ' | ' | ' | ' | ($15.30) | ($9.90) | ($3.80) |
Business_Segment_Information_S1
Business Segment Information - Schedule of Segment Related Capital Expenditure, Depreciation and Amortization on those Expenditures (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | ' | ' | ' |
Total capital expenditures | $30.70 | $35.60 | $31.50 |
Total depreciation and amortization | 56.6 | 55.5 | 48.4 |
Sealing Products [Member] | ' | ' | ' |
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | ' | ' | ' |
Total capital expenditures | 14.3 | 9.7 | 10.9 |
Total depreciation and amortization | 30.4 | 30.3 | 22.9 |
Engineered Products [Member] | ' | ' | ' |
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | ' | ' | ' |
Total capital expenditures | 14 | 20.9 | 11.9 |
Total depreciation and amortization | 22.4 | 21.8 | 21.5 |
Engine Products And Services [Member] | ' | ' | ' |
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | ' | ' | ' |
Total capital expenditures | 2.4 | 4.9 | 8.4 |
Total depreciation and amortization | 3.6 | 3.1 | 3.6 |
Corporate [Member] | ' | ' | ' |
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | ' | ' | ' |
Total capital expenditures | 0 | 0.1 | 0.3 |
Total depreciation and amortization | $0.20 | $0.30 | $0.40 |
Business_Segment_Information_S2
Business Segment Information - Schedule of Net Sales by Geographical Area (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Net Sales By Geographical Segment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales by Geographic Area | $275.50 | $276 | $305.80 | $286.90 | $279.30 | $291.70 | $301.70 | $311.50 | $1,144.20 | $1,184.20 | $1,105.50 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Net Sales By Geographical Segment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales by Geographic Area | ' | ' | ' | ' | ' | ' | ' | ' | 620.3 | 654.2 | 561.3 |
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Net Sales By Geographical Segment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales by Geographic Area | ' | ' | ' | ' | ' | ' | ' | ' | 308.6 | 305 | 321.4 |
Other Foreign [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Net Sales By Geographical Segment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales by Geographic Area | ' | ' | ' | ' | ' | ' | ' | ' | $215.30 | $225 | $222.80 |
Business_Segment_Information_S3
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Schedule Of Assets By Segment [Line Items] | ' | ' |
Assets | $1,392.70 | $1,370.90 |
Long-Lived Assets | 187.5 | 185.5 |
United States [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Long-Lived Assets | 110.1 | 114.1 |
France [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Long-Lived Assets | 30.5 | 23.4 |
Other Europe [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Long-Lived Assets | 34.3 | 34.7 |
Other Foreign [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Long-Lived Assets | 12.6 | 13.3 |
Sealing Products [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Assets | 534.4 | 528.8 |
Engineered Products [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Assets | 329.8 | 318.5 |
Engine Products And Services [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Assets | 131.3 | 121.8 |
Corporate [Member] | ' | ' |
Schedule Of Assets By Segment [Line Items] | ' | ' |
Assets | $397.20 | $401.80 |
Garlock_Sealing_Technologies_L2
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, LTD - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Nov. 30, 2011 | Dec. 31, 2013 |
Garlock Sealing Technologies [Member] | Garlock Sealing Technologies [Member] | ||
Future Claim Representative [Member] | |||
Contribution by affiliates | ' | $200 | ' |
Indemnity costs for current claims | $30 | $70 | $125 |
Garlock_Sealing_Technologies_L3
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. - Schedule of Condensed Combined Statements of Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Items Net Interest And Other Financial Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $275.50 | $276 | $305.80 | $286.90 | $279.30 | $291.70 | $301.70 | $311.50 | $1,144.20 | $1,184.20 | $1,105.50 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 762.9 | 784.1 | 726.5 |
Gross profit | 85.8 | 92.1 | 109.2 | 94.2 | 91.1 | 98.8 | 103 | 107.2 | 381.3 | 400.1 | 379 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 285.8 | 286.1 | 275 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 9.1 | 6.5 | 2.3 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 294.9 | 292.6 | 277.3 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 86.4 | 107.5 | 101.7 |
Interest income, net | ' | ' | ' | ' | ' | ' | ' | ' | -44.3 | -42.8 | -39.6 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 35.8 | 63.5 | 65 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -8.4 | -22.5 | -20.8 |
Net income | 5.2 | 5.6 | 8 | 8.6 | 5.7 | 11.3 | 10.2 | 13.8 | 27.4 | 41 | 44.2 |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | 64.8 | 45.7 | 10.9 |
Garlock Sealing Technologies [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Items Net Interest And Other Financial Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 244.8 | 240.1 | 236.1 |
Cost of sales | ' | ' | ' | ' | ' | ' | ' | ' | 145.3 | 145.3 | 144.7 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 99.5 | 94.8 | 91.4 |
Selling, general and administrative | ' | ' | ' | ' | ' | ' | ' | ' | 41.7 | 45.1 | 45.4 |
Asbestos-related | ' | ' | ' | ' | ' | ' | ' | ' | 2.3 | -1.6 | 2.7 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 1.7 | 0.8 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 44.5 | 45.2 | 48.9 |
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 55 | 49.6 | 42.5 |
Interest income, net | ' | ' | ' | ' | ' | ' | ' | ' | 29.7 | 27.9 | 26.8 |
Income before reorganization expenses and income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 84.7 | 77.5 | 69.3 |
Reorganization expenses | ' | ' | ' | ' | ' | ' | ' | ' | -44.6 | -31.4 | -17 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 40.1 | 46.1 | 52.3 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | -18.7 | -16.3 | -19.6 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 21.4 | 29.8 | 32.7 |
Comprehensive income | ' | ' | ' | ' | ' | ' | ' | ' | $20.80 | $30.40 | $31.60 |
Garlock_Sealing_Technologies_L4
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. - Schedule of Condensed Combined Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Cash Flow Information [Line Items] | ' | ' | ' |
Net cash flows from operating activities | $69.90 | $118.20 | $81.40 |
Purchases of property, plant and equipment | -30.7 | -35.6 | -31.5 |
Acquisitions, net of cash acquired | -2 | -85.3 | -228.2 |
Other | 0.4 | 0.6 | 1.8 |
Net cash used in investing activities | -41.5 | -125.6 | -260.7 |
Effect of exchange rate changes on cash and cash equivalents | 1.6 | 1.1 | 0.2 |
Net increase (decrease) in cash and cash equivalents | 10.5 | 23.2 | -188.5 |
Cash and cash equivalents at beginning of year | 53.9 | 30.7 | 219.2 |
Cash and cash equivalents at end of year | 64.4 | 53.9 | 30.7 |
Garlock Sealing Technologies [Member] | ' | ' | ' |
Supplemental Cash Flow Information [Line Items] | ' | ' | ' |
Net cash flows from operating activities | 48.2 | 31.9 | 44.2 |
Purchases of property, plant and equipment | -8.7 | -6.9 | -3.3 |
Net receipts (payments) from loans to affiliates | -12.8 | 0.5 | 13.1 |
Net purchase of held-to-maturity securities | -25 | -110 | ' |
Receipts from (deposits into) restricted cash accounts | 0.9 | 1.4 | -6.5 |
Acquisitions, net of cash acquired | ' | 0 | -7.5 |
Other | -1.1 | ' | ' |
Net cash used in investing activities | -46.7 | -115 | -4.2 |
Effect of exchange rate changes on cash and cash equivalents | -2.3 | 0.4 | -0.8 |
Net increase (decrease) in cash and cash equivalents | -0.8 | -82.7 | 39.2 |
Cash and cash equivalents at beginning of year | 43.6 | 126.3 | 87.1 |
Cash and cash equivalents at end of year | $42.80 | $43.60 | $126.30 |
Garlock_Sealing_Technologies_L5
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. - Schedule of Condensed Combined Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Millions, unless otherwise specified | ||||||
Current assets | $447.60 | $394.20 | ' | ' | ||
Other assets | 100.4 | 111.4 | ' | ' | ||
Total assets | 1,392.70 | 1,370.90 | ' | ' | ||
Liabilities, Current | 417.5 | 227.5 | ' | ' | ||
Other liabilities | 57.8 | 61.9 | ' | ' | ||
Total liabilities | 779.3 | 823.8 | ' | ' | ||
Shareholder's equity | 597.5 | 547.1 | 494.1 | 476.4 | ||
Liabilities and Equity | 1,392.70 | 1,370.90 | ' | ' | ||
Garlock Sealing Technologies [Member] | ' | ' | ' | ' | ||
Current assets | 314.4 | 168.2 | ' | ' | ||
U.S. Treasury securities | 0 | 110 | ' | ' | ||
Asbestos insurance receivable | 101.1 | 120.7 | ' | ' | ||
Deferred income taxes | 130.4 | 124.8 | ' | ' | ||
Notes receivable from affiliate | 248.1 | 237.4 | ' | ' | ||
Other assets | 76.2 | 74.3 | ' | ' | ||
Total assets | 870.2 | 835.4 | ' | ' | ||
Liabilities, Current | 43.9 | 76.9 | ' | ' | ||
Other liabilities | 58.1 | 10.8 | ' | ' | ||
Liabilities subject to compromise | 468.4 | [1] | 468.4 | [1] | ' | ' |
Total liabilities | 570.4 | 556.1 | ' | ' | ||
Shareholder's equity | 299.8 | 279.3 | ' | ' | ||
Liabilities and Equity | $870.20 | $835.40 | ' | ' | ||
[1] | Liabilities subject to compromise include pre-petition unsecured claims which may be resolved at amounts different from those recorded in the condensed combined balance sheets. Liabilities subject to compromise consist principally of asbestos-related claims. GST has undertaken to project the number and ultimate cost of all present and future bodily injury claims expected to be asserted, based on actuarial principles, and to measure probable and estimable liabilities under generally accepted accounting principles. GST has accrued $466.8 million as of December 31, 2013. The estimate indicated for those asbestos-related claims reflects the point in a wide range of possible outcomes determined based on historical facts and circumstances prior to the Petition Date as our estimate of the cost to resolve asbestos-related personal injury cases and claims against GST as they would have been resolved in the state courts or by settlements over a ten-year period from April 1, 2010 through March 31, 2020. GST adjusts this estimate to reflect payments of previously accrued but unpaid legal fees and to reflect the results of appeals. Otherwise, GST does not expect to adjust the estimate unless developments in the Chapter 11 proceeding provide a reasonable basis for a revised estimate. GST intends to use the claims resolution process in Chapter 11 to determine the validity and ultimate amount of its aggregate liability for asbestos-related claims. Due to the uncertainties of asbestos-related litigation and the Chapter 11 process, GST’s ultimate liability could differ materially from the recorded liability. See Note 19, “Commitments and Contingencies – Asbestos.†|
Garlock_Sealing_Technologies_L6
Garlock Sealing Technologies LLC and Garrison Litigation Management Group, Ltd. - Schedule of Condensed Combined Balance Sheets (Parenthetical) (Detail) (USD $) | Jun. 30, 2010 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Garlock Sealing Technologies [Member] | |
Accrued asbestos liability | $472.10 | $466.80 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 43 Months Ended | 456 Months Ended | 84 Months Ended | 456 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2011 | Jul. 31, 2011 | 31-May-11 | Jul. 27, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jun. 30, 2010 | Dec. 31, 2013 | Jun. 30, 2010 | Dec. 31, 2013 | Jul. 27, 2010 | Jul. 27, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | |
Claim | Claim | LegalMatter | LegalMatter | Garlock Sealing Technologies LLC [Member] | Garlock Sealing Technologies LLC [Member] | Mesothelioma [Member] | Guaranteed Investment Contract, One [Member] | Guaranteed Investment Contract, Two [Member] | High Quality [Member] | Moderate Quality [Member] | Garlock Sealing Technologies [Member] | Garlock Sealing Technologies [Member] | Garlock Sealing Technologies [Member] | |||||||
Appeals | Claim | LegalMatter | LegalMatter | Future Claim Representative [Member] | ||||||||||||||||
site | Claim | |||||||||||||||||||
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of sites owned | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost which the sites are expected to exceed | ' | ' | ' | ' | $100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of sites investigations completed | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of sites where investigations are in progress | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental contingencies and accrued liabilities | ' | ' | ' | ' | 15,100,000 | 11,300,000 | ' | 15,100,000 | 15,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Environmental Remediation Expense | ' | ' | ' | ' | 6,300,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remediation Trust Retained Assets | ' | ' | ' | ' | 750,000 | ' | ' | 750,000 | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Site Contingency, Loss Exposure in Excess of Accrual, Low Estimate | ' | ' | ' | ' | 7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Site Contingency, Loss Exposure in Excess of Accrual, High Estimate | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company contributed directly to the Benefits Trust | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract value guaranteed investment contract | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,000,000 | 2,300,000 | ' | ' | ' | ' | ' |
Current value of guaranteed investment contract held in a special account | ' | ' | ' | ' | 2,800,000 | ' | ' | 2,800,000 | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of contract value contributed to defined benefit plan | ' | 21,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Difference between the contract value and fair value | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of asbestos claims processed | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative claims paid | ' | ' | ' | ' | ' | ' | ' | ' | 1,400,000,000 | ' | ' | ' | 563,200,000 | ' | ' | ' | ' | ' | ' | ' |
Fees and expenses related to asbestos claim | ' | ' | ' | ' | 2,400,000 | 1,500,000 | 900,000 | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pending mesothelioma claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,800 | ' | 90,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-Mesothelioma Pending Claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,900 | ' | ' | ' | ' | ' | ' | ' |
Maximum Number Of Mesothelioma Claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000 | ' | ' | ' | ' | ' | ' | ' |
Number of claims resolved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,300 | ' | ' | ' | ' | ' | ' | ' |
Number of claims dismissed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,700 | ' | ' | ' | ' | ' | ' | ' |
Number of claimants not responded to questionnaire | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of claimants asserting mesothelioma claims | ' | ' | ' | ' | 3,300 | ' | ' | 3,300 | 3,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of additional appeals pending from adverse decisions | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of additional appeals pending from adverse decisions | ' | ' | ' | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of verdict overturned by court | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of verdicts upheld by court | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of insurance coverage available | ' | ' | ' | ' | 121,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance recoveries | ' | ' | ' | ' | 20,800,000 | ' | ' | 74,000,000 | ' | ' | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of insurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 99.00% | 1.00% | ' | ' | ' |
Portion of insurance coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120,000,000 | 1,100,000 | ' | ' | ' |
Coverage for pre-Petition Date claims | ' | ' | ' | ' | 85,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Insurance coverage under payment schedules | ' | ' | ' | ' | 86,200,000 | ' | ' | 86,200,000 | 86,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future insurance recoveries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Recorded asbestos liability at the Petition Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 472,100,000 | 466,800,000 | ' | ' | ' | ' | ' | ' | ' | 466,800,000 | ' |
Estimated cost to resolve claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 270,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proposed Settlement | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | 125,000,000 |
Net rent expense | ' | ' | ' | ' | $15,000,000 | $15,100,000 | $15,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Balance at beginning of year | $4.10 | $3.50 |
Charges to expense | 3.8 | 3.2 |
Settlements made (primarily payments) | -4.1 | -2.6 |
Balance at end of period | $3.80 | $4.10 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule of Future Insurance Proceeds (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
2014 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Insurance Recoveries | $20 |
2015 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Insurance Recoveries | 20 |
2016 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Insurance Recoveries | 18 |
2017 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Insurance Recoveries | 13 |
2018 [Member] | ' |
Product Liability Contingency [Line Items] | ' |
Insurance Recoveries | $11 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Schedule of Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
2014 | $12.70 |
2015 | 11 |
2016 | 8.4 |
2017 | 7.1 |
2018 | 6.8 |
Thereafter | 5.8 |
Total minimum payments | $51.80 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data - Schedule of Selected Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $275.50 | $276 | $305.80 | $286.90 | $279.30 | $291.70 | $301.70 | $311.50 | $1,144.20 | $1,184.20 | $1,105.50 |
Gross profit | 85.8 | 92.1 | 109.2 | 94.2 | 91.1 | 98.8 | 103 | 107.2 | 381.3 | 400.1 | 379 |
Net income | $5.20 | $5.60 | $8 | $8.60 | $5.70 | $11.30 | $10.20 | $13.80 | $27.40 | $41 | $44.20 |
Basic earnings per share (in dollars per share) | $0.25 | $0.27 | $0.39 | $0.41 | $0.28 | $0.54 | $0.50 | $0.67 | $1.31 | $1.99 | $2.15 |
Diluted earnings per share (in dollars per share) | $0.22 | $0.23 | $0.35 | $0.39 | $0.27 | $0.53 | $0.47 | $0.64 | $1.17 | $1.90 | $2.06 |
Recovered_Sheet5
Schedule II - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance, Beginning of Year | $5.70 | $4.60 | $3.60 |
Charge to Expense | 1.7 | 1.7 | 1.6 |
Write-off of Receivables/Expiration of Net Operating Losses | -1.4 | -0.9 | -0.9 |
Other | 0 | 0.3 | 0.3 |
Balance, End of Year | 6 | 5.7 | 4.6 |
Deferred Income Tax Valuation Allowance [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance, Beginning of Year | 17.7 | 12.1 | 10.1 |
Charge to Expense | -1.8 | 4.8 | 3.1 |
Write-off of Receivables/Expiration of Net Operating Losses | -0.1 | ' | 0 |
Other | 1.8 | 0.8 | -1.1 |
Balance, End of Year | $17.60 | $17.70 | $12.10 |