Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NPO | |
Entity Registrant Name | ENPRO INDUSTRIES, INC | |
Entity Central Index Key | 1,164,863 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 20,961,609 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 393.6 | $ 307.6 | $ 762.4 | $ 603.4 |
Cost of sales | 277.8 | 203 | 521.5 | 397.1 |
Gross profit | 115.8 | 104.6 | 240.9 | 206.3 |
Operating expenses: | ||||
Selling, general and administrative | 89.4 | 74 | 181.5 | 146.7 |
Other | 4.3 | 3.1 | 5.3 | 4.4 |
Total operating expenses | 93.7 | 77.1 | 186.8 | 151.1 |
Operating income | 22.1 | 27.5 | 54.1 | 55.2 |
Interest expense | (7.3) | (16.1) | (15.5) | (31) |
Interest income | 0.2 | 0 | 0.6 | 0.1 |
Other expense | (1.2) | (0.2) | (0.6) | (3.7) |
Income before income taxes | 13.8 | 11.2 | 38.6 | 20.6 |
Income tax expense | (3.9) | (2.2) | (16.1) | (5.2) |
Net income | 9.9 | 9 | 22.5 | 15.4 |
Comprehensive income | $ 0 | $ 19.7 | $ 22.4 | $ 30.8 |
Basic earnings per share (in dollars per share) | $ 0.47 | $ 0.42 | $ 1.06 | $ 0.72 |
Diluted earnings per share (in dollars per share) | 0.47 | 0.41 | 1.05 | 0.71 |
Cash dividends per share (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.48 | $ 0.44 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 22.5 | $ 15.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 19 | 14.8 |
Amortization | 17.7 | 13.2 |
Deferred income taxes | (7.5) | (0.4) |
Stock-based compensation | 3.5 | 3.5 |
Other non-cash adjustments | 3.4 | 2.9 |
Change in assets and liabilities, net of effects of acquisition and deconsolidation of businesses: | ||
Asbestos insurance receivables | 12.3 | 0 |
Accounts receivable, net | (31.4) | (20.8) |
Inventories | (21.4) | (7.5) |
Accounts payable | 7.1 | 6.2 |
Other current assets and liabilities | 100.6 | 12 |
Other non-current assets and liabilities | (16.2) | (11.3) |
Net cash provided by operating activities | 109.6 | 28 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (28.1) | (15.2) |
Payments for capitalized internal-use software | (2) | (1.9) |
Acquisitions, net of cash acquired | 0 | (39.7) |
Deconsolidation of OldCo | 0 | (4.8) |
Proceeds from sale of property, plant, and equipment | 26.3 | 0.3 |
Net cash used in investing activities | (3.8) | (61.3) |
FINANCING ACTIVITIES | ||
Proceeds from debt | 358.6 | 351.6 |
Repayments of debt | (489.7) | (279.6) |
Repurchase of common stock | (49.5) | (9.8) |
Dividends paid | (10.3) | (9.6) |
Other | (6.6) | (3.3) |
Net cash provided by (used in) financing activities | (197.5) | 49.3 |
Effect of exchange rate changes on cash and cash equivalents | (4.2) | 4.6 |
Net increase (decrease) in cash and cash equivalents | (95.9) | 20.6 |
Cash and cash equivalents at beginning of period | 189.3 | 111.5 |
Cash and cash equivalents at end of period | 93.4 | 132.1 |
Cash paid (refunded) during the period for: | ||
Interest | 17 | 30.4 |
Income taxes, net | (86.1) | 5.5 |
Non-cash investing and financing activities: | ||
Non-cash acquisitions of property, plant, and equipment | $ 4.7 | $ 3.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 93.4 | $ 189.3 |
Accounts receivable, net | 290.4 | 261.7 |
Inventories | 221.1 | 204.1 |
Income Taxes Receivable | 36.7 | 113.2 |
Prepaid expenses and other current assets | 36.8 | 51.3 |
Total current assets | 678.4 | 819.6 |
Property, plant and equipment, net | 293.5 | 296.9 |
Goodwill | 334.2 | 336.1 |
Other intangible assets, net | 311.6 | 347 |
Other assets | 101.5 | 86.5 |
Total assets | 1,719.2 | 1,886.1 |
Current liabilities | ||
Current maturities of long-term debt | 0.2 | 0.2 |
Accounts payable | 134.5 | 130.7 |
Accrued expenses | 122.1 | 137.2 |
Total current liabilities | 256.8 | 268.1 |
Long-term debt | 487.8 | 618.3 |
Other liabilities | 109.9 | 96.9 |
Total liabilities | 854.5 | 983.3 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued, 20,927,746 shares in 2018 and 21,517,554 shares in 2017 | 0.2 | 0.2 |
Additional paid-in capital | 297.9 | 347.9 |
Retained earnings | 616.4 | 604.4 |
Accumulated other comprehensive loss | (48.5) | (48.4) |
Common stock held in treasury, at cost – 190,765 shares in 2018 and 191,838 shares in 2017 | (1.3) | (1.3) |
Total shareholders’ equity | 864.7 | 902.8 |
Total liabilities and equity | $ 1,719.2 | $ 1,886.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 20,927,746 | 21,517,554 |
Treasury stock, shares (in shares) | 190,765 | 191,838 |
Overview, Basis of Presentation
Overview, Basis of Presentation, Significant Accounting Policy Update, and Recently Issued Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview, Basis of Presentation, Significant Accounting Policy Update, and Recently Issued Authoritative Accounting Guidance | Overview, Basis of Presentation, Significant Accounting Policy Update, and Recently Issued Authoritative 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; heavy-duty truck wheel-end component systems; 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. Basis of Presentation The accompanying interim consolidated financial statements are unaudited, and certain related information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted in accordance with Rule 10-01 of Regulation S-X. They were prepared following the same policies and procedures used in the preparation of our annual financial statements except as disclosed below and reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of results for the periods presented. The Consolidated Balance Sheet as of December 31, 2017 was derived from the audited financial statements included in our annual report on Form 10-K for the year ended December 31, 2017 . The results of operations for the interim periods are not necessarily indicative of the results for the fiscal year. These consolidated financial statements should be read in conjunction with our annual consolidated financial statements for the year ended December 31, 2017 included within our annual report on Form 10-K. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amount 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 may differ from these estimates. All intercompany accounts and transactions between our consolidated operations have been eliminated. On June 5, 2010 (the “GST Petition Date”), our subsidiaries, Garlock Sealing Technologies LLC (“GST LLC”), The Anchor Packing Company (“Anchor”) and Garrison Litigation Management Group, Ltd. (“Garrison,” and, together with GST LLC and Anchor, "GST") filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code (the "GST Chapter 11 Case") in the U.S. Bankruptcy Court for the Western District of North Carolina in Charlotte (the “Bankruptcy Court”). During the pendency of the GST Chapter 11 Case, we did not have exclusive control over these companies. Accordingly, as required by GAAP, GST was deconsolidated beginning on the GST Petition Date. GST was reconsolidated upon the effective date of the consummation of a joint plan of reorganization confirmed in the GST Chapter 11 Case, which effective date was 12:01 a.m. on July 31, 2017. Accordingly, the results of operations and cash flows from GST are not included in the Statement of Operations and Statement of Cash flows for the six months ended June 30, 2017 . Please see Note 17, "Commitments and Contingencies — Asbestos Insurance Matters" for a further description of the GST Chapter 11 Case and the joint plan of reorganization. In the first quarter of 2018, we adopted a comprehensive new revenue recognition standard that replaces numerous requirements formerly in GAAP, including industry-specific requirements, and provides companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard provides certain practical expedients that we elected in adopting and following the new guidance. We have utilized a practical expedient that permits us to expense the costs to obtain a contract as incurred when the expected amortization period is one year or less. Another expedient that we have elected is to not adjust the promised amount of consideration in contracts for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to the customer and when the customer pays for that good or service will be one year or less. We currently do not have any contracts that would require the use of this expedient, but we do consider potential new arrangements from time to time that could be affected by this aspect of the guidance. We adopted the standard using a modified retrospective transition approach. Under this approach, we made an adjustment to beginning retained earnings for 2018 for the cumulative impact of the new guidance on contracts open prior to the transition date that remain open after adoption. As a result of this transition, a $0.4 million increase was recorded to 2018 opening retained earnings. The increase pertained mainly to capitalization of certain contract acquisition costs that were expensed under the previous guidance, and to certain service contracts where revenue was previously recognized using a milestone method. Under the new guidance, revenue on such contracts is recognized more frequently throughout the contract using an input measure. As a result of the adoption of this standard, the impact to our Consolidated Statement of Operations for the six months ended June 30, 2018 and our Consolidated Balance Sheet as of June 30, 2018 in comparison to application of the guidance in effect prior to 2018 was as follows: (in millions) Increase (Decrease) Net sales $ 1.6 Cost of sales $ 1.0 Accounts receivable $ 1.6 Inventories $ (1.0 ) Additionally, in the first quarter of 2018, we adopted a new standard that requires entities to recognize the income tax consequences of an intra-entity transfer of assets other than inventory at the time the transfer occurs. As a result of adopting this standard, on a modified retrospective basis, we were required to reverse the unamortized deferred tax asset of $0.7 million associated with a 2013 intra-entity transfer of intellectual property by charging a corresponding amount to opening retained earnings. Also in the first quarter of 2018, we adopted a standard that requires an employer to report the service cost component of pension and other postretirement benefits expense in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. For the quarter and six months ended June 30, 2018 , the application of this guidance resulted in non-operating income of approximately $0.5 million and $1.1 million , respectively recorded in other (non-operating) expense on the Consolidated Statement of Operations related to the components of net benefit cost other than service cost. For the quarter and six months ended June 30, 2017 , we recast our Consolidated Statement of Operations to reflect the retrospective application of this guidance, which resulted in a decrease in operating expenses of approximately $0.2 million and $0.5 million , respectively with a corresponding increase in other (non-operating) expense. Further information on pension and other postretirement benefits expense for the periods covered by this report can be found in Note 11, "Pensions and Postretirement Benefits." In the first quarter of 2018 we elected to early adopt a standard that was issued in 2017 to introduce targeted improvements to accounting for hedging activities. Among the changes the standard introduced were the elimination of recognizing periodic hedge ineffectiveness for cash flow and net investment hedges, and the permission of entities to exclude the change in the fair value of cross-currency basis spreads in currency swaps from the assessment of hedge effectiveness. Under the standard’s amortization approach, an entity recognizes the initial value of the component that was excluded from the assessment of hedge effectiveness as an adjustment to earnings over the life of the hedging instrument by using a systematic and rational method. Please see Note 14, "Derivatives and Hedging," for further description of our current hedging arrangement initiated in the first quarter of 2018. Significant Accounting Policy Update Revenue Recognition For the Sealing Products and Engineered Products segments, by far the largest stream of revenue is product revenue for shipments of the various products discussed further in Note 13, "Business Segment Information," along with a smaller amount of revenue from services that typically pertain to the products sold and take place over a short period of time. We recognize revenue at a point in time following the transfer of control, which typically occurs when a product is shipped or delivered, depending on the terms of the sale agreement, or when services are rendered. Shipping costs billed to customers are recognized as revenue and expensed in cost of goods sold as a fulfillment cost when control of the product transfers to the customer. Payment from customers is typically due within 30 days of the sale for sales in the U.S. For sales outside of the U.S., payment terms may be longer based upon local business customs, but are typically due no later than 90 days after the sale. Our Power Systems segment engages in long-term contracts with various customers to design and manufacture heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines. Additionally, the segment has certain longer term service contracts that typically involve engine repair, maintenance, and testing services. Certain engine contracts provide for multiple deliverables to be provided to the customer, such as multiple engines. We determine whether such deliverables are distinct and separate performance obligations within a contract by evaluating the relationship between the deliverables to the customer. If the deliverables are highly integrated by us into a combined output or are highly interdependent or interrelated, they are accounted for as a single performance obligation. In general, the assets being created for the customer are specific enough to the customers’ specifications to not have an alternative use for our own business or for sale to a different customer without significant modification, and we have an enforceable right to payment for performance completed as it takes place throughout the life of the engine builds. These characteristics indicate a continuous transfer of control to the customer during the contract. As a result, revenue related to these contracts is recognized over time. Revenue is recognized over time for these contracts based on the extent of progress towards completion of the long-term contract. We generally use an input method for our long-term contracts unless we believe another method more clearly measures progress towards completion of the contract. Under this input method, 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. Billings for work completed take place either at milestones in the contract negotiated with the customer or at a monthly interval (progress billings) as costs to complete are incurred. Payments are generally due 30 days after the invoice date. Certain contracts contain retainage provisions that apply to a portion of the contract consideration. The balances billed but not paid by customers pursuant to retainage provisions in long-term contracts and programs are normally due upon completion of the contracts and/or acceptance by the owner of specified deliverables. As these provisions are designed to protect the customer from our failing to adequately comply with our obligations under the contract, we do not believe they represent a significant financing component. 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, including the benefits of learning and investments in new technologies, the complexity of the work to be performed, the availability and future prices 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 recognized in the period they become known. These adjustments would result in an increase or a decrease in gross profit. Changes in estimates of net sales, cost of sales, and the related impact to gross profit 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. We believe that this method is a faithful depiction of the transfer of goods pursuant to the standard because it results in the recognition of revenue on the basis of our to-date efforts in the satisfaction of a performance obligation relative to total expected efforts in satisfaction of the performance obligation. See Note 2, "Revenue from Contracts with Customers," for further discussion and information about our contract revenues and related assets and liabilities. Recently Issued Authoritative Accounting Guidance In February 2018, a standard was issued that helps organizations address certain stranded income tax effects in accumulated other comprehensive income resulting from the Tax Cuts and Jobs Act (the "Tax Act"). The standard provides financial statement preparers with an option to reclassify stranded tax effects within accumulated other comprehensive income to retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recorded. The amendments in this guidance are effective for financial statements issued for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the alternatives presented by the standard with respect to the tax effects associated with our pension plan unamortized net losses and prior service costs that are in our balance of accumulated other comprehensive loss. In January 2017, a standard was issued to simplify annual and interim goodwill impairment testing for public business entities. Under the standard, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The standard is effective for any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and is to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The standard is not currently expected to have a significant impact on our consolidated financial statements or disclosures. In June 2016, a standard was issued that significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income, including trade receivables. The standard requires an entity to estimate its lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The standard is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. Based upon our current population of receivables and associated historical credit loss experience, we do not expect that this standard will have a significant impact on our consolidated financial statements. This conclusion could be impacted by any significant future financing arrangements that we may choose to enter with customers. In February 2016, a standard was issued to establish principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. The standard will require lessees to recognize the lease assets and lease liabilities that arise from all leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. The standard retains a distinction between finance leases and operating leases. As a result, the effect of leases in the statement of operations and the statement of cash flows is largely unchanged. Additionally, the guidance provides clarification on the definition of a lease, including alignment of the concept of control of an asset with principles in other authoritative guidance around revenue recognition and consolidation. The amendments in this guidance are effective for financial statements issued for interim and annual periods beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. While we do not currently expect that adoption of the standard will have a material impact to our Consolidated Statements of Operations, Comprehensive Income, or Cash Flows, the addition of lease assets and liabilities to our Consolidated Balance Sheets for leases currently accounted for as operating leases will increase both total assets and liabilities. At December 31, 2017, future minimum lease payments under non-cancelable operating leases were $49.4 million . The amount of increase will depend on the magnitude of our population of operating lease commitments at the time of adoption, which could change significantly from our current commitments due to factors including future lease versus buy decisions, acquisitions, and dispositions. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers See Note 1, "Significant Accounting Policy Update" for information regarding long-term engine and service contracts. Additional information regarding long-term engine contracts where revenue is recognized over time using an input method is as follows: June 30, December 31, (in millions) Cumulative revenues recognized on uncompleted contracts $ 390.6 $ 350.3 Cumulative billings on uncompleted contracts 345.4 304.2 $ 45.2 $ 46.1 These amounts were included in the accompanying Consolidated Balance Sheets under the following captions: June 30, December 31, (in millions) Accounts receivable, net (contract revenue recognized in excess of billings) $ 52.3 $ 51.8 Accrued expenses (billings in excess of revenue recognized) (7.1 ) (5.7 ) $ 45.2 $ 46.1 The changes in our contract deferred revenue (billings in excess of revenue recognized) for the six months ended June 30, 2018 are as follows: 2018 Balance at beginning of period $ 5.7 Additional billings in excess of revenue recognized 12.9 Revenue recognized (11.4 ) Balance at end of period $ 7.2 We make deposits and progress payments to certain vendors for long-lead-time manufactured components associated with engine projects. At June 30, 2018 and December 31, 2017 , deposits and progress payments for long-lead-time components totaled $2.6 million and $2.7 million , respectively. These deposits and progress payments are classified in prepaid expenses and other current assets in the accompanying Consolidated Balance Sheets. Assets and liabilities for long-term service contracts recognized over time were immaterial as of June 30, 2018 and December 31, 2017 . As of June 30, 2018 , the aggregate amount of transaction price of remaining performance obligations, or backlog, for the full company is $385.9 million . Approximately 94% of these obligations are expected to be satisfied within one year . The amount expected to be satisfied beyond June 30, 2019 is mainly attributable to our Power Systems segment and pertains to the contracts discussed above. Remaining performance obligations include those related to the contracts discussed above as well as orders across all of our businesses that we believe to be firm. However, there is no certainty these orders will result in actual sales at the times or in the amounts ordered. In addition, for most of our business, this total is not particularly predictive of future performance because of our short lead times and some seasonality. |
Restructuring and Disposal of A
Restructuring and Disposal of Assets Restructuring and Disposal of Assets | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring and Disposal of Assets [Abstract] | |
Restructuring and Disposal of Assets | Restructuring and Disposal of Assets In the second quarter of 2018, we decided to commence the exit from our industrial gas turbine business in the Sealing Products segment located in Oxford, Massachusetts. We sold the land and building at this location in June 2018, resulting in a realized gain of $21.7 million . Subsequent to the sale, we incurred severance expense of $1.2 million , net tangible asset write downs of $5.1 million , the write-off of customer relationship intangible assets associated with the business of $19.1 million , and other related costs of $0.4 million . These transactions resulted in total net restructuring costs related to the exit of $4.1 million in the second quarter of 2018. These net costs are reflected within other (operating) expense in our Consolidated Statement of Operations aside from inventory-related costs of $2.5 million , which were reflected in costs of sales. We expect the balance of the restructuring costs for the exit of approximately $3.5 million (primarily employee costs and other costs associated with executing the exit plan), to be incurred and paid during 2018. The approximately $1.6 million of severance and other costs accrued at June 30, 2018 associated with this action will primarily be paid in the third quarter. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our income tax expense and resulting effective tax rate are based upon the estimated annual effective tax rates applicable for the respective periods adjusted for the effect of items required to be treated as discrete interim period items, including losses generated in countries where we are projecting annual losses for which a deferred tax asset is not anticipated to be recognized. This estimated annual effective tax rate is affected by the relative proportions of revenue and income before taxes in the jurisdictions in which we operate. Based on the current geographical mix of earnings and the new lower corporate income tax rate in the U.S. in 2018, where a significant portion of our income is taxed, our global effective tax rate generally approximates the blended domestic statutory rate and fluctuates based on the portion of our profits earned in each jurisdiction. On December 22, 2017, the Tax Cuts and Jobs Act (the "Tax Act") was enacted and contains several key tax provisions impacting the Company including the reduction of the federal statutory income tax rate from 35.0% to 21.0% , the transition to a territorial tax system and a mandatory one-time transition tax on accumulated earnings of foreign subsidiaries. In the fourth quarter of 2017, the period of enactment, we recognized a provisional estimate for the impact of these tax law changes in our income tax provision. The effective tax rates for the quarters ended June 30, 2018 and 2017 were 28.6% and 19.6% , respectively. The effective tax rate in the prior year quarter was lower because more of our forecasted earnings were taxable in lower tax jurisdictions outside the U.S. The effective tax rates for the six months ended June 30, 2018 and 2017 were 41.8% and 25.2% , respectively. The effective tax rate for the six months ended June 30, 2018 was higher than the federal statutory rate primarily due to the recognition of new provisions of the Tax Act that became effective on January 1, 2018, a significant discrete tax charge to true-up the benefit previously recognized for domestic production activities as a result of interpretive guidance recently issued by the IRS, partially offset by the reduction in the federal statutory rate. The effective tax rate for the six months ended June 30, 2017 was lower than the federal statutory rate primarily due to the portion of our profits earned within the U.S. versus lower rates in foreign jurisdictions. As noted above, in the six months ended June 30, 2018 , the Company recognized a significant discrete item related to an adjustment to our 2017 provisional estimate resulting from interpretive guidance recently issued by the IRS. This new guidance allows us to elect out of applying the 2017 tax loss against the mandatory one-time transition tax on accumulated earnings of our foreign subsidiaries. As a result, we were able to carry back additional losses generated by the funding of the asbestos settlement trust established pursuant to the joint plan of reorganization confirmed in the GST Chapter 11 Case, but were required to record a tax charge in the first quarter of 2018 for the reduction of the benefit previously recognized for domestic production activities. In December 2017, the U.S. Securities and Exchange Commission ("SEC") issued guidance to address the application of authoritative tax accounting guidance in situations where companies do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act for the reporting period in which the Tax Act was enacted. In these instances, the SEC's guidance allows companies to record provisional estimates of the impact during a measurement period not to extend beyond one year of the enactment date. In the first quarter of 2018, we recorded an adjustment to our 2017 provisional amount as a discrete item in the current period and are continuing to refine our calculations as we further analyze financial data and interpretive guidance. Our accounting of the impact is expected to be completed within the one-year measurement period ending in the fourth quarter of 2018. As a result of the new territorial tax system and the mandatory one-time transition tax enacted by the Tax Act, accumulated earnings of our foreign subsidiaries are available for distribution without incremental U.S. tax. In light of this, we have changed our permanent reinvestment assertion such that earnings from foreign jurisdictions that do not impose withholding taxes are no longer permanently reinvested. During the six months ended June 30, 2018 , we repatriated approximately $114.0 million of previously taxed earnings from our foreign subsidiaries, resulting in no incremental U.S. or foreign tax. In June 2017, the IRS began an examination of our 2014 U.S. federal income tax returns. Although this examination is part of a routine and recurring cycle, we cannot predict the final outcome or expected conclusion date of the audit. Various foreign and state tax returns are also currently under examination and some of these exams may conclude within the next twelve months. The final outcomes of these audits are not yet determinable; however, management believes that any assessments that may arise will not have a material effect on our financial results. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Quarters Ended Six Months Ended 2018 2017 2018 2017 (in millions, except per share amounts) Numerator (basic and diluted): Net income $ 9.9 $ 9.0 $ 22.5 $ 15.4 Denominator: Weighted-average shares – basic 20.9 21.3 21.1 21.4 Share-based awards 0.2 0.5 0.2 0.4 Weighted-average shares – diluted 21.1 21.8 21.3 21.8 Earnings per share: Basic $ 0.47 $ 0.42 $ 1.06 $ 0.72 Diluted $ 0.47 $ 0.41 $ 1.05 $ 0.71 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories June 30, December 31, (in millions) Finished products $ 132.6 $ 121.4 Work in process 36.2 33.0 Raw materials and supplies 62.6 59.2 231.4 213.6 Reserve to reduce certain inventories to LIFO basis (10.7 ) (10.2 ) Manufacturing inventories 220.7 203.4 Incurred costs relating to long-term contracts 0.4 0.7 Total inventories $ 221.1 $ 204.1 Incurred costs related to long-term contracts in the table above represent inventoried work in process and finished products related to an engine contract previously accounted for under the completed-contract method, where costs incurred exceeded customer billings. We use the last-in, first-out (“LIFO”) method of valuing certain of our inventories. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management’s estimates of expected year-end inventory levels and costs, which are subject to change until the final year-end LIFO inventory valuation. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the net carrying value of goodwill by reportable segment for the six months ended June 30, 2018 , are as follows: Sealing Products Engineered Products Power Systems Total (in millions) Goodwill as of December 31, 2017 $ 313.2 $ 10.9 $ 12.0 $ 336.1 Change due to foreign currency translation (1.5 ) (0.1 ) (0.3 ) (1.9 ) Goodwill as of June 30, 2018 $ 311.7 $ 10.8 $ 11.7 $ 334.2 The goodwill balances reflected above are net of accumulated impairment losses of $27.8 million for the Sealing Products segment and $154.8 million for the Engineered Products segment as of June 30, 2018 and December 31, 2017 . Identifiable intangible assets are as follows: As of June 30, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (in millions) Amortized: Customer relationships $ 285.3 $ 141.9 $ 311.2 $ 138.0 Existing technology 112.5 41.3 113.0 37.5 Trademarks 35.4 22.6 35.8 22.3 Other 28.4 23.4 28.7 23.2 461.6 229.2 488.7 221.0 Indefinite-Lived: Trademarks 79.2 — 79.3 — Total $ 540.8 $ 229.2 $ 568.0 $ 221.0 Amortization expense for the quarters ended June 30, 2018 and 2017 was $7.4 million and $5.1 million , respectively. Amortization for the six months ended June 30, 2018 and 2017 was $14.9 million and $10.2 million , respectively. |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses June 30, December 31, (in millions) Salaries, wages and employee benefits $ 49.3 $ 63.7 Interest 8.2 8.6 Customer advances 9.1 7.1 Environmental 7.4 9.2 Income and other taxes 12.3 14.3 Other 35.8 34.3 $ 122.1 $ 137.2 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions GST was an unconsolidated related party until reconsolidation effective July 31, 2017. 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. Amounts included in our consolidated financial statements arising from transactions with GST during the periods in which it was not consolidated in our results include the following: Consolidated Statements of Operations Caption Quarter Ended Six Months Ended Description 2017 Sales to GST Net sales $ 9.0 $ 18.2 Purchases from GST Cost of sales $ 5.5 $ 10.8 Interest expense to GST Interest expense $ 8.9 $ 17.6 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Revolving Credit Facility On June 28, 2018, we entered into a Second Amended and Restated Credit Agreement (the “Amended Credit Agreement”) among EnPro Industries, Inc. and EnPro Holdings, Inc., a wholly owned subsidiary of the Company (“EnPro Holdings”), as borrowers, the guarantors party thereto, the lenders party thereto and Bank of America, N.A., as Administrative Agent, Swing Line Lender and Letter of Credit Issuer. The Amended Credit Agreement provides for a five-year, senior secured revolving credit facility of $350.0 million (the “Revolving Credit Facility”). The Amended Credit Agreement also provides that the borrowers may seek incremental term loans and/or additional revolving credit commitments in an amount equal to the greater of $ 225.0 million and 100% of consolidated EBITDA (as defined) for the most recently ended four-quarter period for which we have reported financial results, plus additional amounts based on a consolidated senior secured leverage ratio. Borrowing availability under the Revolving Credit Facility is not limited by reference to a borrowing base. Initially, borrowings under the Revolving Credit Facility bear interest at an annual rate of LIBOR plus 1.75% or base rate plus 0.75% , although the interest rates under the Revolving Credit Facility are subject to incremental increases based on a consolidated total net leverage ratio. In addition, a commitment fee accrues with respect to the unused amount of the Revolving Credit Facility. The Company and EnPro Holdings are the permitted borrowers under the Revolving Credit Facility. The Company has the ability to add foreign subsidiaries as borrowers under the Revolving Credit Facility for up to $100.0 million (or its foreign currency equivalent) in aggregate borrowings, subject to certain conditions. Each of the Company’s domestic, consolidated subsidiaries are required to guarantee the obligations of the borrowers under the Revolving Credit Facility, and each of the Company’s existing domestic, consolidated subsidiaries has entered into the Amended Credit Agreement to provide such a guarantee. Borrowings under the Revolving Credit Facility are secured by a first priority pledge of certain assets. The Amended Credit Agreement contains certain financial covenants and required financial ratios including a maximum consolidated total net leverage and a minimum consolidated interest coverage as defined in the Amended Credit Agreement. We were in compliance with all covenants of the Revolving Credit Facility as of June 30, 2018 . The borrowing availability under our Revolving Credit Facility at June 30, 2018 was $291.4 million after giving consideration to $16.1 million of outstanding letters of credit and $42.5 million of outstanding revolver borrowings. Senior Notes In September 2014, we completed an offering of $300 million aggregate principal amount of our 5.875% Senior Notes due 2022 (the “Senior Notes”). We issued the notes net of an original issue discount of $2.4 million . The Senior Notes are unsecured, unsubordinated obligations of EnPro and mature on September 15, 2022. Interest on the Senior Notes accrues at a rate of 5.875% per annum and is payable semi-annually in cash in arrears on March 15 and September 15 of each year. The debt discount is being amortized through interest expense until the maturity date resulting in an effective interest rate of 6.00% . The Senior Notes are required to be guaranteed on a senior unsecured basis by each of EnPro’s existing and future direct and indirect domestic subsidiaries that is a borrower under, or guarantees, our indebtedness under the Revolving Credit Facility or guarantees any other Capital Markets Indebtedness (as defined in the indenture governing the Senior Notes) of EnPro or any of the guarantors. We may, on any one or more occasions, redeem all or a part of the Senior Notes at specified redemption prices plus accrued and unpaid interest. Each holder of the Senior Notes may require us to repurchase some or all of the Senior Notes for cash upon the occurrence of a defined “change of control” event. Our ability to redeem the Senior Notes prior to maturity is subject to certain conditions, including in certain cases the payment of make-whole amounts. The indenture governing the Senior Notes includes covenants that restrict our ability to engage in certain activities, including incurring additional indebtedness, paying dividends, and purchasing our common stock, subject in each case to specified exceptions and qualifications set forth in the indenture. In March 2017, we completed an add-on offering of $150.0 million of our 5.875% Senior Notes due 2022 (the “Additional Notes"). We issued the notes inclusive of an original issue premium of $1.5 million . The indenture for the Additional Notes contains the same interest payment, redemption, change of control, covenant, and guarantee provisions as the Senior Notes. The debt premium is being amortized through interest expense until the maturity date resulting in an effective interest rate of 5.66% . |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pensions and Postretirement Benefits | Pensions and Postretirement Benefits The components of net periodic benefit cost for our U.S. and foreign defined benefit pension and other postretirement plans for the quarters and six months ended June 30, 2018 and 2017 , are as follows: Quarters Ended June 30, Six Months Ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits 2018 2017 2018 2017 2018 2017 2018 2017 (in millions) Service cost $ 1.3 $ 1.0 $ — $ — $ 2.5 $ 2.1 $ 0.1 $ — Interest cost 3.4 3.0 0.1 — 6.8 6.0 0.1 — Expected return on plan assets (5.3 ) (4.5 ) — — (10.7 ) (9.0 ) — — Amortization of prior service cost 0.1 — — — 0.1 — — — Amortization of net loss 1.5 1.8 — — 2.9 3.6 — — Deconsolidation of GST — (0.1 ) — — — (0.3 ) — — Net periodic benefit cost $ 1.0 $ 1.2 $ 0.1 $ — $ 1.6 $ 2.4 $ 0.2 $ — For the six months ended June 30, 2018 , we contributed $20.0 million to our U.S. defined benefit pension plans. We do not expect to make any additional contributions for the remainder of the year. Contributions of $1.8 million were made in the six months ended June 30, 2017 . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity We have adopted a policy under which we intend to declare regular quarterly cash dividends on our common stock, as determined by our board of directors, after taking into account our cash flows, earnings, financial position, debt covenants and other relevant matters. In accordance with this policy, total dividend payments of $10.3 million were made during the six months ended June 30, 2018 . In August 2018, our board of directors declared a dividend of $0.24 per share, payable on September 19, 2018 to all shareholders of record as of September 5, 2018. In October 2017, our board of directors authorized the repurchase of up to $50.0 million of our outstanding common shares. During the six months ended June 30, 2018 , we repurchased 0.7 million shares for $49.9 million . Total cash paid during the period for share repurchases was $49.5 million . The remaining amount of authorized purchases in the program at June 30, 2018 was $0.1 million . We repurchased the remaining authorized amount in July 2018 to complete the repurchase plan. Upon completion of this share repurchase program, the exceptions and qualifications permitting share repurchases under the indenture governing the Senior Notes and the Additional Notes have been substantially exhausted. Accordingly, during the remaining term of the Senior Notes and the Additional Notes, any further repurchase of shares of our common stock will be restricted. |
Business Segment Information
Business Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information We aggregate our operating businesses into three reportable segments. The factors considered in determining our reportable segments are the economic similarity of the businesses, the nature of products sold or services provided, the production processes and the types of customers and distribution methods. Our reportable segments are managed separately based on these differences. 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, custom-engineered mechanical seals for applications in the aerospace industry and other markets, hydraulic components, expansion joints, flange sealing and isolation products, pipeline casing spacers/isolators, casing end seals, modular sealing systems for sealing pipeline penetrations, sanitary gaskets, hoses and fittings for the hygienic process industries, hole forming products, manhole infiltration sealing systems, bellows and bellows assemblies, pedestals for semiconductor manufacturing, PTFE products, and heavy-duty commercial vehicle parts used in the wheel-end, braking, suspension, and tire and mileage optimization systems. 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, and precision engineered components and lubrication systems for reciprocating compressors. Our Power Systems segment designs, manufactures, sells and services heavy-duty, medium-speed diesel, natural gas and dual fuel reciprocating engines. 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, asset impairments, 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 quarters and six months ended June 30, 2018 and 2017 were as follows: Quarters Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Sales Sealing Products $ 255.7 $ 191.3 $ 487.6 $ 370.6 Engineered Products 85.4 75.7 171.3 150.8 Power Systems 53.7 41.6 105.8 84.0 394.8 308.6 764.7 605.4 Intersegment sales (1.2 ) (1.0 ) (2.3 ) (2.0 ) Net sales $ 393.6 $ 307.6 $ 762.4 $ 603.4 Segment Profit (Loss) Sealing Products $ 19.3 $ 21.2 $ 43.0 $ 41.6 Engineered Products 12.1 8.3 26.5 17.8 Power Systems (0.2 ) 6.3 3.8 12.6 Total segment profit 31.2 35.8 73.3 72.0 Corporate expenses (8.5 ) (7.1 ) (17.2 ) (14.6 ) Interest expense, net (7.1 ) (16.1 ) (14.9 ) (30.9 ) Other expense, net (1.8 ) (1.4 ) (2.6 ) (5.9 ) Income before income taxes $ 13.8 $ 11.2 $ 38.6 $ 20.6 Note that segment profit and other expense, net for the quarters and six months ended June 30, 2017 were recast to reflect the retrospective application of a standard adopted in the first quarter of 2018 that affects the classification of the components of pension and other postretirement benefits expense other than service cost. See Note 1, "Basis of Presentation" for further information on this standard. Segment assets are as follows: June 30, December 31, (in millions) Sealing Products $ 1,049.8 $ 1,078.0 Engineered Products 233.9 229.2 Power Systems 224.2 210.8 Corporate 211.3 368.1 $ 1,719.2 $ 1,886.1 Revenue by end market Due to the diversified nature of our business and the wide array of products that we offer, we sell into a number of end markets. Underlying economic conditions within these markets are a major driver of our segments' sales performance. Below is a summary of our third party sales by major end market with which we do business for the quarter ended June 30, 2018 : (in millions) Sealing Products Engineered Products Power Systems Total Aerospace $ 13.2 $ 2.1 $ — $ 15.3 Automotive 1.8 27.5 — 29.3 Chemical and material processing 11.2 14.2 — 25.4 Food and pharmaceutical 9.7 0.2 — 9.9 General industrial 49.3 26.0 — 75.3 Medium-duty/heavy-duty truck 106.2 — — 106.2 Navy and marine 0.2 — 40.5 40.7 Oil and gas 12.9 11.6 3.0 27.5 Power generation 18.5 2.7 10.0 31.2 Semiconductors 30.4 — — 30.4 Other 1.4 0.8 0.2 2.4 Total third party sales $ 254.8 $ 85.1 $ 53.7 $ 393.6 Below is a summary of our third party sales by major end market with which we do business for the six months ended June 30, 2018 : (in millions) Sealing Products Engineered Products Power Systems Total Aerospace $ 24.9 $ 4.3 $ — $ 29.2 Automotive 3.0 55.5 — 58.5 Chemical and material processing 24.2 26.8 — 51.0 Food and pharmaceutical 18.0 0.5 — 18.5 General industrial 94.8 53.2 — 148.0 Medium-duty/heavy-duty truck 195.3 0.3 — 195.6 Navy and marine 0.3 — 71.4 71.7 Oil and gas 27.8 23.2 4.2 55.2 Power generation 32.8 5.4 28.6 66.8 Semiconductors 58.6 — — 58.6 Other 6.0 1.8 1.5 9.3 Total third party sales $ 485.7 $ 171.0 $ 105.7 $ 762.4 |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Credit Derivatives [Abstract] | |
Derivatives and Hedging | Derivatives and Hedging In March 2018, we entered into cross currency swap agreements with a notional amount of $200.0 million to manage foreign currency risk by effectively converting a portion of the interest payments related to our fixed-rate U.S. Dollar (“USD”)-denominated Senior Notes, including the semi-annual interest payments thereunder, to interest payments on fixed-rate Euro-denominated debt of 161.8 million EUR with a weighted average interest rate of 3.29% , with the same interest payment dates and maturity date as the Senior Notes. During the term of the swap agreement, we will receive semi-annual payments from the counterparties due to the difference between the interest rate on the Senior Notes and the interest rate on the Euro debt underlying the swap. There was no principal exchange at the inception of the arrangement, and there will be no exchange at maturity. At maturity (or earlier at our option), we and the counterparties will settle the swap agreements at their fair value in cash based on the $200.0 million aggregate notional amount and the then-applicable currency exchange rate compared to the exchange rate at the time the swap agreements were entered into. We have designated the cross currency swap as a qualifying hedging instrument and are accounting for it as a net investment hedge. At June 30, 2018 , the fair value of these derivatives was $8.9 million , and was recorded as an asset within other assets on the Consolidated Balance Sheet. The gains and losses resulting from fair value adjustments to the cross currency swap agreement, excluding interest accruals related to the above receipts, are recorded in accumulated other comprehensive loss within our cumulative foreign currency translation adjustment, as the swap is effective in hedging the designated risk. Cash flows related to the cross currency swap will be included in operating activities in the Consolidated Statements of Cash Flows, aside from the ultimate settlement at maturity with the counterparties, which will be included in investing activities. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We utilize a fair value hierarchy that categorizes 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. Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of June 30, 2018 Total Level 1 Level 2 Level 3 (in millions) Assets Time deposits $ 25.4 $ 25.4 $ — $ — Foreign currency derivatives 8.9 — 8.9 — Deferred compensation assets 8.5 8.5 — — $ 42.8 $ 33.9 $ 8.9 $ — Liabilities Deferred compensation liabilities $ 8.8 $ 8.8 $ — $ — Fair Value Measurements as of December 31, 2017 Total Level 1 Level 2 Level 3 (in millions) Assets Deferred compensation assets $ 7.8 $ 7.8 $ — $ — Liabilities Deferred compensation liabilities $ 8.9 $ 8.9 $ — $ — Our time deposits and deferred compensation assets and liabilities are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Our foreign currency derivatives are classified as Level 2 as their value is calculated based upon observable inputs including market USD/Euro exchange rates and market interest rates. The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximated their respective fair values except for the following instruments: June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in millions) Long-term debt $ 488.0 $ 505.3 $ 618.5 $ 645.6 The fair values for long-term debt are based on quoted market prices for identical liabilities, but these would be considered Level 2 computations because the market is not active. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component (after tax) for the quarter ended June 30, 2018 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ 2.0 $ (40.6 ) $ (38.6 ) Other comprehensive loss before reclassifications (11.0 ) — (11.0 ) Amounts reclassified from accumulated other comprehensive loss — 1.1 1.1 Net current-period other comprehensive income (loss) (11.0 ) 1.1 (9.9 ) Ending balance $ (9.0 ) $ (39.5 ) $ (48.5 ) Changes in accumulated other comprehensive loss by component (after tax) for the quarter ended June 30, 2017 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (17.6 ) $ (48.6 ) $ (66.2 ) Other comprehensive income before reclassifications 9.8 — 9.8 Amounts reclassified from accumulated other comprehensive loss — 0.9 0.9 Net current-period other comprehensive income 9.8 0.9 10.7 Ending balance $ (7.8 ) $ (47.7 ) $ (55.5 ) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2018 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (6.8 ) $ (41.6 ) $ (48.4 ) Other comprehensive loss before reclassifications (2.2 ) — (2.2 ) Amounts reclassified from accumulated other comprehensive loss — 2.1 2.1 Net current-period other comprehensive income (loss) (2.2 ) 2.1 (0.1 ) Ending balance $ (9.0 ) $ (39.5 ) $ (48.5 ) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2017 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (21.2 ) $ (49.7 ) $ (70.9 ) Other comprehensive income before reclassifications 13.4 — 13.4 Amounts reclassified from accumulated other comprehensive loss — 2.0 2.0 Net current-period other comprehensive income 13.4 2.0 15.4 Ending balance $ (7.8 ) $ (47.7 ) $ (55.5 ) Reclassifications out of accumulated other comprehensive loss for the quarters and six months ended June 30, 2018 and 2017 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Amount Reclassified from Accumulated Other Affected Statement of Operations Caption (in millions) 2018 2017 2018 2017 Amortization of pension and other postretirement plans: Actuarial losses $ 1.5 $ 1.8 $ 2.9 $ 3.6 (1) Prior service costs 0.1 — 0.1 — (1) Total before tax $ 1.6 $ 1.8 $ 3.0 $ 3.6 Tax benefit (0.5 ) (0.9 ) (0.9 ) (1.6 ) Income tax expense Net of tax $ 1.1 $ 0.9 $ 2.1 $ 2.0 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. As these are components of net periodic pension cost other than service cost, the affected Statement of Operations caption is other (nonoperating) expense (See Note 11, “Pensions and Postretirement Benefits” for additional details). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies General A detailed description of environmental 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 are involved with various remediation activities at 15 sites where the future cost per site for us or our subsidiary is expected to exceed $100,000 . Investigations have been completed for 11 sites and are in progress at the other 4 sites. Our costs at 14 of the 15 sites relate to remediation projects for soil and/or groundwater contamination at or near former operating facilities that were sold or closed. 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 the remediation of similar 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 June 30, 2018 and December 31, 2017 , we had accrued liabilities aggregating $25.3 million and $27.3 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 fully or partially 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. Except as described below, 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. 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. One such matter, which is included in the 15 sites referred to above, is the Lower Passaic River Study Area of the Diamond Alkali Superfund Site in New Jersey. Crucible operated a steel mill abutting the Passaic River in Harrison, New Jersey from the 1930s until 1974, which was one of many industrial operations on the river dating back to the 1800s. Certain contingent environmental liabilities related to this site were retained by a corporate predecessor ("Coltec") of our primary direct subsidiary when Coltec sold a majority interest in Crucible Materials Corporation (the successor of Crucible) in 1985. The United States Environmental Protection Agency (the “EPA”) notified Coltec in September 2003 that it is a potentially responsible party (“PRP”) for Superfund response actions in the lower 17 -mile stretch of the Passaic River known as the Lower Passaic River Study Area. Coltec and approximately 70 of the numerous other PRPs, known as the Cooperating Parties Group, are parties to a May 2007 Administrative Order on Consent with the EPA to perform a Remedial Investigation/Feasibility Study (“RI/FS”) of the contaminants in the Lower Passaic River Study Area. The RI/FS was completed and submitted to the EPA at the end of April 2015. The RI/FS recommends a targeted dredge and cap remedy with monitored natural recovery and adaptive management for the Lower Passaic River Study Area. The cost of such remedy is estimated to be $726 million . Previously, on April 11, 2014, the EPA released its Focused Feasibility Study (the “FFS”) with its proposed plan for remediating the lower eight miles of the Lower Passaic River Study Area. The FFS calls for bank-to-bank dredging and capping of the riverbed of that portion of the river and estimates a range of the present value of aggregate remediation costs of approximately $953 million to approximately $1.73 billion , although estimates of the costs and the timing of costs are inherently imprecise. On March 3, 2016, the EPA issued the final Record of Decision (ROD) as to the remedy for the lower eight miles of the Lower Passaic River Study Area, with the maximum estimated cost being reduced by the EPA from $1.73 billion to $1.38 billion , primarily due to a reduction in the amount of cubic yards of material that will be dredged. In October 2016, Occidental Chemical Corporation, the successor to the entity that operated the Diamond Alkali chemical manufacturing facility, reached an agreement with the EPA to develop the design for this proposed remedy at an estimated cost of $165 million . The EPA has estimated that it will take approximately four years to develop this design. No final allocations of responsibility have been made among the numerous PRPs that have received notices from the EPA, there are numerous identified PRPs that have not yet received PRP notices from the EPA, and there are likely many PRPs that have not yet been identified. In September 2017, EPA hired a third-party allocator to develop an allocation of costs among a large number of the parties identified by EPA as having potential responsibility, including the Company. On June 30, 2018, Occidental Chemical Corporation sued over 120 parties, including the Company, in the United States District Court for New Jersey seeking recovery of response costs under the Federal Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"). In a proposed pre-trial order, Occidental Chemical Corporation has proposed that any alternative dispute resolution process, including mediation, shall begin no later than September 16, 2019. Based on our evaluation of the site, during 2014 we accrued a liability of $3.5 million related to environmental remediation costs associated with the lower eight miles of the Lower Passaic River Study Area, which is our estimate of the low end of a range of reasonably possible costs, with no estimate within the range being a better estimate than the minimum. Our actual remediation costs could be significantly greater than the $3.5 million we accrued. With respect to the upper nine miles of the Lower Passaic River Study Area, we are unable to estimate a range of reasonably possible costs. Another such matter involves the Onondaga Lake Superfund Site (the “Onondaga Site”) located near Syracuse, New York. Crucible operated a steel mill facility adjacent to Onondaga Lake from 1911 to 1983. The New York State Department of Environmental Conservation (“NYSDEC”) has contacted us and Coltec, as well as other parties, demanding reimbursement of unquantified environmental response costs incurred by NYSDEC and the EPA at the Onondaga Site. NYSDEC and EPA have alleged that contamination from the Crucible facility contributed to the need for environmental response actions at the Onondaga Site. In addition, Honeywell International Inc. (“Honeywell”), which has undertaken certain remediation activities at the Onondaga Site under the supervision of NYSDEC and the EPA, has informed us that it has claims against Coltec related to investigation and remediation at the Onondaga Site. We have entered into tolling agreements with NYSDEC, the EPA and Honeywell. On May 4, 2016, we received from Honeywell a summary of its claims. We have corresponded with Honeywell and have begun discussions with them regarding their claims. In addition, we have received notice from the Natural Resource Trustees for the Onondaga Lake Superfund Site (which are the U.S. Department of Interior, NYSDEC, and the Onondaga Nation) alleging that Coltec is considered to be a potentially responsible party for natural resource damages at the Onondaga Site. At this time, based on limited information we have with respect to estimated remediation costs and the respective allocation of responsibility for remediation among potentially responsible parties, we cannot estimate a reasonably possible range of loss associated with Crucible’s activities that may have affected the Onondaga Site. We have engaged and are continuing to engage in discussions with Honeywell with respect to these issues and possible resolution of Honeywell's claim. During 2016, we reserved $1.5 million for reimbursement of EPA response costs and certain estimated costs associated with the remedial investigation. See the section entitled “Crucible Steel Corporation a/k/a Crucible, Inc.” in this footnote for additional information. In addition to the Crucible environmental matters discussed above, Coltec received a notice from the EPA dated February 19, 2014 asserting that Coltec is a potentially responsible party under the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA") as the successor to a former operator in 1954 and 1955 of two uranium mines in Arizona. On October 15, 2015, Coltec received another notice from the EPA asserting that Coltec is a potentially responsible party as the successor to the former operator of six additional uranium mines in Arizona. In 2015, we reserved $1.1 million for the minimum amount of probable loss associated with the first two mines identified by the EPA, including the cost of the investigative work to be conducted at such mines. During 2016, we reserved an additional $1.1 million for the minimum amount of probable loss associated with the six additional mines, which includes estimated costs of investigative work to be conducted at the eight mines. We entered into an Administrative Settlement Agreement and Order on Consent for Interim Removal Action with the EPA effective November 7, 2017. In the third quarter of 2017, we increased the reserve by $1.9 million to perform investigations required by the Settlement Agreement to determine the nature and extent of contamination at each site with the investigations to be completed by the end of 2019. The balance in the reserve as of June 30, 2018 is $3.1 million . We cannot at this time estimate a reasonably possible range of loss associated with remediation or other incremental costs related to these mines. In connection with the former operation of a division of Colt Industries Inc, located in Water Valley, Mississippi, which Coltec divested to BorgWarner, Inc. ("BorgWarner") in 1996, Coltec and its corporate successors have been managing trichloroethylene soil and groundwater contamination at the site. In February 2016, the Mississippi Department of Environmental Quality (MDEQ) issued an order against EnPro requiring evaluation of potential vapor intrusion into residential properties and commercial facilities located over the groundwater plume as well as requiring additional groundwater investigation and remediation. MDEQ performed the initial vapor intrusion investigations at certain residential and commercial sites, with the findings all being below the applicable screening level. In April 2016, the parties entered into a new order including negotiated time frames for groundwater remediation. Pursuant to that order, MDEQ performed a second round of vapor intrusion sampling beginning in August 2016. Results from sampling outside of three residences were above screening levels. Follow-up sampling directly underneath those residences (either sub-slab or in crawl spaces) were all below applicable screening levels. Two separate sampling events at another residence were also below applicable screening levels. Due to an increasing trend in vapor concentrations, MDEQ requested that we develop and implement initial corrective action measures to address vapor intrusion resulting from groundwater contamination in this residential area. These measures were developed and approved by MDEQ. Due to an inability to obtain access to private properties where the corrective action system was to be located, we have developed an alternate remedial approach which is under review by MDEQ. In addition, vapor intrusion sampling at the manufacturing facility owned by BorgWarner was conducted during the first quarter of 2017. The results showed exceedances of screening levels at various areas in the plant and exceedances of levels requiring responsive actions in a limited area of the plant. Implementation of the immediate responsive actions has been completed and corrective action consisting of a permanent vapor intrusion remediation system became operational in May 2017. We are also continuing soil and groundwater investigation work in the area inside the plant where the vapor intrusion remediation system is located and around the outside of the plant and developing corrective action plans for both the contamination remaining at the plant as well as contamination that has migrated off-site. All of the work to be performed at the residential area, the plant and off-site is set forth in an agreed Order that we and MDEQ entered into on September 11, 2017. During 2016, we established an additional $1.3 million reserve with respect to this matter. During the year ended December 31, 2017, we reserved an additional $5.7 million for further investigation, additional remediation, long-term monitoring costs, and legal fees to support regulatory compliance for the above noted actions. The remaining reserve at June 30, 2018 is $2.6 million . As the corrective actions are implemented and their performance monitored, further modifications to the remediation system at the site may be required which may result in additional costs beyond the current reserve. On April 7, 2017, the State of Mississippi through its Attorney General filed suit against EnPro, our subsidiary that is a corporate successor to Coltec, and Goodrich Corporation, our former parent corporation, in Mississippi Circuit Court in Yalobusha County seeking recovery of all costs and expenses to be incurred by the State in remediating the groundwater contamination, punitive damages and attorney’s fees. We plan to aggressively defend this case. The additional reserve established in the year ended December 31, 2017, noted above, does not include any estimate of contingent loss associated with this lawsuit other than due to remediation and other actions with respect to this site based on existing MDEQ orders described above. In addition, it is our understanding that area homeowners, owners of commercial facilities and the local county government and possibly other private parties and individuals have engaged or may engage legal counsel to separately evaluate possible legal action relating to potential vapor intrusion and groundwater contamination. We have been further advised that certain of these parties intend to file legal action based on these claims. Based upon limited information regarding any further remediation or other actions that may be required at the site, we cannot estimate a minimum loss estimate or a reasonably possible range of loss for remediation costs. 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. Ongoing obligations with regard to workers’ compensation, retiree medical and other retiree benefit matters that relate to Coltec’s periods of ownership of these operations are included in other liabilities in our Consolidated Balance Sheets. 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 and is no longer conducting operations. 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 necessitate. Changes in the carrying amount of the product warranty liability for the six months ended June 30, 2018 and 2017 are as follows: 2018 2017 (in millions) Balance at beginning of year $ 5.3 $ 5.0 Net charges to expense 5.8 0.8 Settlements made (2.3 ) (1.3 ) Balance at end of period $ 8.8 $ 4.5 Approximately $4.9 million of the charges to expense in the current year pertain to unusual warranty expense associated with two products sold by our heavy-duty trucking business. These charges relate to specific performance issues identified with these products, and the amount of the charges is based on estimates and assumptions with respect to the frequency of incidence of these performance issues during the relevant warranty periods, the cost of replacement or repair and other matters. Adjustments to the estimated warranty expense related to these products may be required as actual claims are incurred or otherwise as experience necessitates. BorgWarner A subsidiary of BorgWarner has asserted claims against our subsidiary, GGB France E.U.R.L. (“GGB France”), regarding certain bearings supplied by GGB France to BorgWarner and used by BorgWarner in manufacturing hydraulic control units included in motor vehicle automatic transmission units, mainly that the bearings caused performance problems with and/or damage to the transmission units, leading to associated repairs and replacements. BorgWarner and GGB France participated in a technical review before a panel of experts to determine, among other things, whether there were any defects in such bearings that were a cause of the damages claimed by BorgWarner, including whether GGB France was required to notify BorgWarner of a change in the source of a raw material used in the manufacture of such bearings. This technical review was a required predicate to the commencement of a legal proceeding for damages. The expert panel issued a final report on technical and financial matters on April 6, 2017. In the final report, the expert panel concluded that GGB France had a duty to notify BorgWarner regarding the change of source of raw material used in the bearings, but that the failure of the hydraulic control units was attributable to both the raw material supplier change and the insufficient design of the units by BorgWarner. The expert panel provided detail on a possible allocation of damages alleged to have been incurred by BorgWarner and its customer. Although the language of the report is not clear, the report appears to note a potential allocation of recoverable damages 35% to BorgWarner and 65% to GGB France. It also indicates that, though it is for a court to ultimately determine, the aggregate damages to BorgWarner and its customer was in the range of 7.9 million EUR to 10.2 million EUR, with 1.8 million EUR to 2.1 million EUR of this range being for damages to BorgWarner and the remainder being for damages to its customer. The experts noted the lower end of the range as being more likely and noted a lack of sufficient evidence provided substantiating the customer's damages. Applying a 65% liability allocation to GGB to the total aggregate range yields a range of 5.1 million EUR to 6.6 million EUR. In the final report, the expert panel deferred to a court the determination of whether GGB France had breached its contractual obligations to BorgWarner. On October 25, 2017, BorgWarner initiated a legal proceeding against GGB with respect to this matter by filing a writ of claim with the Commercial Court of Brive, France. The parties have begun briefing their legal positions, and we expect court hearings to begin in the second half of 2018. We continue to believe that GGB France has valid factual and legal defenses to these claims and we are vigorously defending these claims. Among GGB France’s legal defenses are a contractual disclaimer of consequential damages, which, if controlling, would limit liability for consequential damages and provide for the replacement of the bearings at issue, at an aggregate replacement value we estimate to be approximately 0.4 million EUR; that the determination of any duty to notify of the change in the source of the raw material is a legal matter to be determined by the presiding court; and the insufficiency of evidence of damage to BorgWarner's customer provided to the expert panel. Based on the final report from the expert panel and GGB France's legal defenses described above, we estimate GGB France’s reasonably possible range of loss associated with this matter to be approximately 0.4 million EUR to 6.6 million EUR plus a potential undetermined amount of apportioned proceeding expenses, with no amount within the range being a better estimate than the minimum of the range. Accordingly, GGB France has retained the accrual of 0.4 million EUR associated with this matter, which was established in 2016. Asbestos Insurance Matters 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. Those subsidiaries manufactured and/or sold industrial sealing products, predominately gaskets and packing, 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 neither we nor any of our subsidiaries other than GST LLC and Anchor had ever paid an asbestos claim. Anchor was an inactive and insolvent indirect subsidiary of EnPro's then-direct subsidiary, Coltec Industries Inc ("Coltec"). Our subsidiaries’ exposure to asbestos litigation and their relationships with insurance carriers had been managed through another subsidiary, Garrison. On the GST 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 for an efficient and permanent resolution of all pending and future asbestos claims through court approval of a plan of reorganization to establish a facility to resolve and pay all GST asbestos claims. On March 17, 2016, we announced that we had reached a comprehensive consensual settlement (the “Consensual Settlement”) to resolve current and future asbestos claims which contemplated the joint plan of reorganization (the "Joint Plan") which was filed with the Bankruptcy Court. The Joint Plan and Consensual Settlement contemplated that, as an appropriate and necessary step to facilitate the implementation of the Consensual Settlement and not to delay or hinder creditors or the resolution of claims, Coltec would, subject to the receipt of necessary consents, undergo a restructuring (the “Coltec Restructuring”) in which all of its significant operating assets and subsidiaries, which included each of our major business units, would be distributed to a new direct EnPro subsidiary, EnPro Holdings, Inc. (“EnPro Holdings”). EnPro Holdings would also assume all of Coltec’s non-asbestos liabilities. The Coltec Restructuring was completed on December 31, 2016, and included the merger of Coltec with and into OldCo, LLC (“OldCo”), which was a direct subsidiary of EnPro Holdings. OldCo, as the restructured entity, retained responsibility for all asbestos claims and rights to certain insurance assets of Coltec, as well as the business operated by our EnPro Learning System, LLC subsidiary (“EnPro Learning System”), which provides occupational safety training and consulting services to third parties. EnPro Learning System was also merged into OldCo. As contemplated by the Joint Plan, on January 30, 2017 (the “OldCo Petition Date”), OldCo, as the successor by merger to Coltec, filed a Chapter 11 bankruptcy petition with the Bankruptcy Court (the “OldCo Chapter 11 Case”). On February 3, 2017, the Bankruptcy Court issued an order for the joint administration of the OldCo Chapter 11 Case with the GST Chapter 11 Case. During the pendency of the GST Chapter 11 Case and the OldCo Chapter 11 Case, certain actions proposed to be taken by GST or OldCo not in the ordinary course of business were subject to approval by the Bankruptcy Court. As a result, during the pendency of the GST Chapter 11 Case and the OldCo Chapter 11 Case, we did not have exclusive control over these companies. Accordingly, as required by GAAP, GST was deconsolidated beginning on the GST Petition Date and OldCo was deconsolidated beginning on the OldCo Petition Date. Accordingly the financial results of GST and its subsidiaries were included in our consolidated results through June 4, 2010, the day prior to the GST Petition Date, and the financial results of OldCo and its subsidiaries were included in our consolidated results through January 29, 2017, the day prior to the OldCo Petition Date. GST and OldCo were reconsolidated effective upon the effective date of the consummation of the Joint Plan, which effective date was 12:01 a.m. on July 31, 2017 (the “Joint Plan Effective Date”). The Joint Plan permanently resolves current and future asbestos claims against GST LLC, Garrison and OldCo, as the successor by merger to Coltec, and injunctions issued under the Joint Plan protect all of EnPro and its subsidiaries from those claims, which claims are enjoined under Section 524(g) of the U.S. Bankruptcy Code. Under the Joint Plan, the trust established pursuant to the Joint Plan (the “Trust”) has assumed responsibility for all present and future asbestos claims arising from the operations or products of GST LLC, Garrison or Coltec/OldCo. Under the Joint Plan, EnPro, through its subsidiaries, retained ownership of OldCo, GST LLC and Garrison. Anchor, which had not conducted business operations for many years and had nominal assets, had been dissolved. Pursuant to the Joint Plan, the Trust was funded (i) with aggregate cash contributions by GST LLC and Garrison of $350 million made immediately prior to the Joint Plan Effective Date, (ii) by the contribution made by OldCo immediately prior to the Joint Plan Effective Date of $50 million in cash and an option (the “Option”), exercisable one year after the Joint Plan Effective Date, permitting the Trust to purchase for $1 shares of EnPro common stock having a value of $20 million (with OldCo having the right to call the option for payment of $20 million in cash at any time prior to the first anniversary of the Joint Plan Effective Date, with the Trust having the right to put the option to OldCo for payment by OldCo of $20 million on the day prior to the first anniversary of the Joint Plan Effective Date and with the option terminating on the second anniversary of the Joint Plan Effective Date in return for payment to the Trust of $20 million ), and (iii) by the obligations under the Joint Plan of OldCo to make a deferred contribution of $40 million in cash and of GST LLC and Garrison to make an aggregate deferred contribution of $20 million in cash no later than one year after the Joint Plan Effective Date. On November 29, 2017, GST LLC, EnPro Holdings and EnPro entered into an agreement with the Trust to provide for the early settlement of the deferred contributions to the Trust under the Joint Plan and for the call of the Option by EnPro Holdings, as the successor by merger to OldCo. Under that agreement, in full satisfaction of the $60 million of aggregate deferred contribution obligations under the Joint Plan and payment of the $20 million call payment under the Option, on December 1, 2017 GST LLC, EnPro Holdings and EnPro paid $78.8 million (the “Early Cash Settlement Amount”) to the Trust and agreed to make a further payment to the Trust to the extent that total interest earned through July 31, 2018, with respect to a fixed income account in which the Early Cash Settlement Amount was invested by the Trust is less than $1.2 million . Under the Consensual Settlement and Joint Plan, GST and OldCo retained their rights to seek reimbursement under insurance policies for any amounts they have paid in the past to resolve asbestos claims, including contributions made to the Trust under the Joint Plan. These policies include a number of primary and excess general liability insurance policies that were purchased by Coltec and were in effect prior to January 1, 1976 (the “Pre-Garlock Coverage Block”). The policies provide coverage for “occurrences” happening during the policy periods and cover losses associated with product liability claims against Coltec and certain of its subsidiaries. Asbestos claims against GST are not covered under these policies because GST was not a Coltec subsidiary prior to 1976. The Joint Plan provides that OldCo may retain the first $ 25 million of any settlements and judgments related to insurance policies in the Pre-Garlock Coverage Block and OldCo and the Trust will share equally in any settlements and judgments OldCo may collect in excess of $ 25 million . As of June 30, 2018 , approximately $32.1 million of available products hazard limits or insurance receivables existed under primary and excess general liability insurance policies other than the Pre-Garlock Coverage Block (the "Garlock Coverage Block") from solvent carriers with investment grade ratings, which we believe is available to cover GST asbestos claims payments and certain expense payments, i |
Supplemental Guarantor Financia
Supplemental Guarantor Financial Information | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Supplemental Guarantor Financial Information | Supplemental Guarantor Financial Information In September 2014, we completed the offering of the Senior Notes and in March 2017 we completed the offering of the Additional Notes. The Senior Notes and the Additional Notes are fully and unconditionally guaranteed on an unsecured, unsubordinated, joint and several basis by our existing and future wholly owned direct and indirect domestic subsidiaries, that are each guarantors of our Revolving Credit Facility (collectively, the “Guarantor Subsidiaries”). Our subsidiaries organized outside of the United States, (collectively, the “Non-Guarantor Subsidiaries”) do not guarantee the Senior Notes or the Additional Notes. A Guarantor Subsidiary's guarantee is subject to release in certain circumstances, including (i) the sale, disposition, exchange or other transfer (including through merger, consolidation, amalgamation or otherwise) of the capital stock of the subsidiary made in a manner not in violation of the indenture governing the Senior Notes and the Additional Notes; (ii) the designation of the subsidiary as an “Unrestricted Subsidiary” under the indenture governing the Senior Notes and the Additional Notes; (iii) the legal defeasance or covenant defeasance of the Senior Notes and the Additional Notes in accordance with the terms of the indenture; or (iv) the subsidiary ceasing to be our subsidiary as a result of any foreclosure of any pledge or security interest securing our Revolving Credit Facility or other exercise of remedies in respect thereof. The following tables present condensed consolidating financial information for EnPro Industries, Inc. (the "Parent"), the Guarantor Subsidiaries on a combined basis, the Non-Guarantor Subsidiaries on a combined basis and the eliminations necessary to arrive at our consolidated results. The consolidating financial information reflects our investments in subsidiaries using the equity method of accounting. These tables are not intended to present our results of operations, cash flows or financial condition for any purpose other than to comply with the specific requirements for subsidiary guarantor reporting. ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Quarter Ended June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 274.3 $ 160.9 $ (41.6 ) $ 393.6 Cost of sales — 214.3 105.1 (41.6 ) 277.8 Gross profit — 60.0 55.8 — 115.8 Operating expenses: Selling, general and administrative 11.3 46.4 31.7 — 89.4 Other — 4.1 0.2 — 4.3 Total operating expenses 11.3 50.5 31.9 — 93.7 Operating income (loss) (11.3 ) 9.5 23.9 — 22.1 Interest expense, net (5.5 ) (1.5 ) (0.1 ) — (7.1 ) Other expense — (1.0 ) (0.2 ) — (1.2 ) Income (loss) before income taxes (16.8 ) 7.0 23.6 — 13.8 Income tax benefit (expense) 1.2 1.7 (6.8 ) — (3.9 ) Income (loss) before equity in earnings of subsidiaries (15.6 ) 8.7 16.8 — 9.9 Equity in earnings of subsidiaries, net of tax 25.5 16.8 — (42.3 ) — Net income $ 9.9 $ 25.5 $ 16.8 $ (42.3 ) $ 9.9 Comprehensive income (loss) $ — $ 7.3 $ (2.5 ) $ (4.8 ) $ — ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Quarter Ended June 30, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 214.7 $ 113.1 $ (20.2 ) $ 307.6 Cost of sales — 148.7 74.5 (20.2 ) 203.0 Gross profit — 66.0 38.6 — 104.6 Operating expenses: Selling, general and administrative 6.9 41.0 26.1 — 74.0 Other 0.3 0.7 2.1 — 3.1 Total operating expenses 7.2 41.7 28.2 — 77.1 Operating income (loss) (7.2 ) 24.3 10.4 — 27.5 Interest expense, net (6.9 ) (8.8 ) (0.4 ) — (16.1 ) Other expense — (0.2 ) — — (0.2 ) Income (loss) before income taxes (14.1 ) 15.3 10.0 — 11.2 Income tax benefit (expense) 5.5 (5.9 ) (1.8 ) — (2.2 ) Income (loss) before equity in earnings of subsidiaries (8.6 ) 9.4 8.2 — 9.0 Equity in earnings of subsidiaries, net of tax 17.6 8.2 — (25.8 ) — Net income $ 9.0 $ 17.6 $ 8.2 $ (25.8 ) $ 9.0 Comprehensive income $ 19.7 $ 28.3 $ 17.9 $ (46.2 ) $ 19.7 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Six Months Ended June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 531.6 $ 311.8 $ (81.0 ) $ 762.4 Cost of sales — 399.8 202.7 (81.0 ) 521.5 Gross profit — 131.8 109.1 — 240.9 Operating expenses: Selling, general and administrative 23.4 95.6 62.5 — 181.5 Other 0.1 4.7 0.5 — 5.3 Total operating expenses 23.5 100.3 63.0 — 186.8 Operating income (loss) (23.5 ) 31.5 46.1 — 54.1 Interest income (expense), net (12.2 ) (3.1 ) 0.4 — (14.9 ) Other expense — (0.4 ) (0.2 ) — (0.6 ) Income (loss) before income taxes (35.7 ) 28.0 46.3 — 38.6 Income tax benefit (expense) 7.6 (10.2 ) (13.5 ) — (16.1 ) Income (loss) before equity in earnings of subsidiaries (28.1 ) 17.8 32.8 — 22.5 Equity in earnings of subsidiaries, net of tax 50.6 32.8 — (83.4 ) — Net income $ 22.5 $ 50.6 $ 32.8 $ (83.4 ) $ 22.5 Comprehensive income $ 22.4 $ 44.5 $ 24.6 $ (69.1 ) $ 22.4 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Six Months Ended June 30, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 419.1 $ 225.2 $ (40.9 ) $ 603.4 Cost of sales — 292.2 145.8 (40.9 ) 397.1 Gross profit — 126.9 79.4 — 206.3 Operating expenses: Selling, general and administrative 14.0 80.9 51.8 — 146.7 Other 0.7 1.0 2.7 — 4.4 Total operating expenses 14.7 81.9 54.5 — 151.1 Operating income (loss) (14.7 ) 45.0 24.9 — 55.2 Interest expense, net (11.7 ) (18.5 ) (0.7 ) — (30.9 ) Other expense — (3.6 ) (0.1 ) — (3.7 ) Income (loss) before income taxes (26.4 ) 22.9 24.1 — 20.6 Income tax benefit (expense) 10.0 (9.4 ) (5.8 ) — (5.2 ) Income (loss) before equity in earnings of subsidiaries (16.4 ) 13.5 18.3 — 15.4 Equity in earnings of subsidiaries, net of tax 31.8 18.3 — (50.1 ) — Net income $ 15.4 $ 31.8 $ 18.3 $ (50.1 ) $ 15.4 Comprehensive income $ 30.8 $ 47.2 $ 31.6 $ (78.8 ) $ 30.8 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES $ 64.6 $ 131.4 $ 27.6 $ (114.0 ) $ 109.6 INVESTING ACTIVITIES Purchases of property, plant and equipment — (22.9 ) (5.2 ) — (28.1 ) Payments for capitalized internal-use software — (1.8 ) (0.2 ) — (2.0 ) Proceeds from sale of property, plant, and equipment — 25.9 0.4 — 26.3 Net cash provided by (used in) investing activities — 1.2 (5.0 ) — (3.8 ) FINANCING ACTIVITIES Net payments on loans between subsidiaries 0.6 (0.3 ) (0.3 ) — — Intercompany dividends — — (114.0 ) 114.0 — Proceeds from debt — 358.6 — — 358.6 Repayments of debt — (489.7 ) — — (489.7 ) Repurchase of common stock (49.5 ) — — — (49.5 ) Dividends paid (10.3 ) — — — (10.3 ) Other (5.4 ) (1.2 ) — — (6.6 ) Net cash used in financing activities (64.6 ) (132.6 ) (114.3 ) 114.0 (197.5 ) Effect of exchange rate changes on cash and cash equivalents — — (4.2 ) — (4.2 ) Net decrease in cash and cash equivalents — — (95.9 ) — (95.9 ) Cash and cash equivalents at beginning of period — — 189.3 — 189.3 Cash and cash equivalents at end of period $ — $ — $ 93.4 $ — $ 93.4 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (12.0 ) $ 18.7 $ 21.4 $ (0.1 ) $ 28.0 INVESTING ACTIVITIES Purchases of property, plant and equipment — (11.2 ) (4.0 ) — (15.2 ) Payments for capitalized internal-use software — (1.9 ) — — (1.9 ) Deconsolidation of OldCo — (4.8 ) — — (4.8 ) Acquisitions, net of cash acquired — (39.7 ) — — (39.7 ) Other — — 0.3 — 0.3 Net cash used in investing activities — (57.6 ) (3.7 ) — (61.3 ) FINANCING ACTIVITIES Net payments on loans between subsidiaries (116.8 ) 120.1 (3.3 ) — — Intercompany dividends — — (0.1 ) 0.1 — Proceeds from debt 151.5 196.6 3.5 — 351.6 Repayments of debt — (278.6 ) (1.0 ) — (279.6 ) Repurchase of common stock (9.8 ) — — — (9.8 ) Dividends paid (9.6 ) — — — (9.6 ) Other (3.3 ) — — — (3.3 ) Net cash provided by (used in) financing activities 12.0 38.1 (0.9 ) 0.1 49.3 Effect of exchange rate changes on cash and cash equivalents — — 4.6 — 4.6 Net increase (decrease) in cash and cash equivalents — (0.8 ) 21.4 — 20.6 Cash and cash equivalents at beginning of period — 0.8 110.7 — 111.5 Cash and cash equivalents at end of period $ — $ — $ 132.1 $ — $ 132.1 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) As of June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ 93.4 $ — $ 93.4 Accounts receivable, net — 196.8 93.6 — 290.4 Intercompany receivables — 23.1 10.0 (33.1 ) — Inventories — 148.4 72.7 — 221.1 Income tax receivable 43.7 1.0 — (8.0 ) 36.7 Prepaid expenses and other current assets 4.9 20.2 11.7 — 36.8 Total current assets 48.6 389.5 281.4 (41.1 ) 678.4 Property, plant and equipment, net — 206.8 86.7 — 293.5 Goodwill — 261.0 73.2 — 334.2 Other intangible assets, net — 253.2 58.4 — 311.6 Intercompany receivables — 23.2 0.6 (23.8 ) — Investment in subsidiaries 1,297.9 372.2 — (1,670.1 ) — Other assets 21.4 73.9 10.2 (4.0 ) 101.5 Total assets $ 1,367.9 $ 1,579.8 $ 510.5 $ (1,739.0 ) $ 1,719.2 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt $ — $ 0.2 $ — $ — $ 0.2 Accounts payable 3.7 92.6 38.2 — 134.5 Intercompany payables — 10.0 23.1 (33.1 ) — Accrued expenses 15.1 72.0 43.0 (8.0 ) 122.1 Total current liabilities 18.8 174.8 104.3 (41.1 ) 256.8 Long-term debt 444.8 43.0 — — 487.8 Intercompany payables 23.5 — 0.3 (23.8 ) — Other liabilities 16.1 64.1 33.7 (4.0 ) 109.9 Total liabilities 503.2 281.9 138.3 (68.9 ) 854.5 Shareholders’ equity 864.7 1,297.9 372.2 (1,670.1 ) 864.7 Total liabilities and equity $ 1,367.9 $ 1,579.8 $ 510.5 $ (1,739.0 ) $ 1,719.2 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) As of December 31, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ 189.3 $ — $ 189.3 Accounts receivable, net — 180.1 81.6 — 261.7 Intercompany receivables — 24.0 6.7 (30.7 ) — Inventories — 135.4 68.7 — 204.1 Income tax receivable 132.3 1.3 2.0 (22.4 ) 113.2 Prepaid expenses and other current assets 4.3 26.5 20.5 — 51.3 Total current assets 136.6 367.3 368.8 (53.1 ) 819.6 Property, plant and equipment, net — 206.8 90.1 — 296.9 Goodwill — 261.0 75.1 — 336.1 Other intangible assets, net — 284.2 62.8 — 347.0 Intercompany receivables — 22.9 — (22.9 ) — Investment in subsidiaries 1,261.3 460.1 — (1,721.4 ) — Other assets 12.8 59.3 14.4 — 86.5 Total assets $ 1,410.7 $ 1,661.6 $ 611.2 $ (1,797.4 ) $ 1,886.1 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt — 0.2 — — 0.2 Accounts payable 2.3 82.5 45.9 — 130.7 Intercompany payables — 6.7 24.0 (30.7 ) — Accrued expenses 22.8 90.1 46.7 (22.4 ) 137.2 Total current liabilities 25.1 179.5 116.6 (53.1 ) 268.1 Long-term debt 444.2 174.1 — — 618.3 Intercompany payables 22.9 — — (22.9 ) — Other liabilities 15.7 46.7 34.5 — 96.9 Total liabilities 507.9 400.3 151.1 (76.0 ) 983.3 Shareholders’ equity 902.8 1,261.3 460.1 (1,721.4 ) 902.8 Total liabilities and equity $ 1,410.7 $ 1,661.6 $ 611.2 $ (1,797.4 ) $ 1,886.1 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On June 26, 2018, we entered into an agreement to purchase a group annuity contract to transfer approximately $68 million of our outstanding pension projected benefit obligations related to certain U.S. retirees or beneficiaries. The transaction closed on July 3, 2018 and was funded with pension plan assets with a value of $70.9 million . As a result of this transaction a pre-tax pension settlement charge of approximately $12.8 million will be recognized in the third quarter of 2018. This charge will be recorded in other (non-operating) expense on the Consolidated Statement of Operations. |
Overview, Basis of Presentati25
Overview, Basis of Presentation, Significant Accounting Policy Update, and Recently Issued Authoritative Accounting Guidance (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | as of June 30, 2018 in comparison to application of the guidance in effect prior to 2018 was as follows: (in millions) Increase (Decrease) Net sales $ 1.6 Cost of sales $ 1.0 Accounts receivable $ 1.6 Inventories $ (1.0 ) |
Revenue from Contracts with C26
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Information Regarding Contracts Accounted for Under Percentage-of-Completion Method | Additional information regarding long-term engine contracts where revenue is recognized over time using an input method is as follows: June 30, December 31, (in millions) Cumulative revenues recognized on uncompleted contracts $ 390.6 $ 350.3 Cumulative billings on uncompleted contracts 345.4 304.2 $ 45.2 $ 46.1 |
Schedule of Uncompleted Contracts Reflected in Consolidated Balance Sheets | These amounts were included in the accompanying Consolidated Balance Sheets under the following captions: June 30, December 31, (in millions) Accounts receivable, net (contract revenue recognized in excess of billings) $ 52.3 $ 51.8 Accrued expenses (billings in excess of revenue recognized) (7.1 ) (5.7 ) $ 45.2 $ 46.1 |
Contract Deferred Revenue | The changes in our contract deferred revenue (billings in excess of revenue recognized) for the six months ended June 30, 2018 are as follows: 2018 Balance at beginning of period $ 5.7 Additional billings in excess of revenue recognized 12.9 Revenue recognized (11.4 ) Balance at end of period $ 7.2 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | Quarters Ended Six Months Ended 2018 2017 2018 2017 (in millions, except per share amounts) Numerator (basic and diluted): Net income $ 9.9 $ 9.0 $ 22.5 $ 15.4 Denominator: Weighted-average shares – basic 20.9 21.3 21.1 21.4 Share-based awards 0.2 0.5 0.2 0.4 Weighted-average shares – diluted 21.1 21.8 21.3 21.8 Earnings per share: Basic $ 0.47 $ 0.42 $ 1.06 $ 0.72 Diluted $ 0.47 $ 0.41 $ 1.05 $ 0.71 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | June 30, December 31, (in millions) Finished products $ 132.6 $ 121.4 Work in process 36.2 33.0 Raw materials and supplies 62.6 59.2 231.4 213.6 Reserve to reduce certain inventories to LIFO basis (10.7 ) (10.2 ) Manufacturing inventories 220.7 203.4 Incurred costs relating to long-term contracts 0.4 0.7 Total inventories $ 221.1 $ 204.1 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 , are as follows: Sealing Products Engineered Products Power Systems Total (in millions) Goodwill as of December 31, 2017 $ 313.2 $ 10.9 $ 12.0 $ 336.1 Change due to foreign currency translation (1.5 ) (0.1 ) (0.3 ) (1.9 ) Goodwill as of June 30, 2018 $ 311.7 $ 10.8 $ 11.7 $ 334.2 |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets are as follows: As of June 30, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (in millions) Amortized: Customer relationships $ 285.3 $ 141.9 $ 311.2 $ 138.0 Existing technology 112.5 41.3 113.0 37.5 Trademarks 35.4 22.6 35.8 22.3 Other 28.4 23.4 28.7 23.2 461.6 229.2 488.7 221.0 Indefinite-Lived: Trademarks 79.2 — 79.3 — Total $ 540.8 $ 229.2 $ 568.0 $ 221.0 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | June 30, December 31, (in millions) Salaries, wages and employee benefits $ 49.3 $ 63.7 Interest 8.2 8.6 Customer advances 9.1 7.1 Environmental 7.4 9.2 Income and other taxes 12.3 14.3 Other 35.8 34.3 $ 122.1 $ 137.2 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Amounts Included in Financial Statements Arising From Transactions with GST | Amounts included in our consolidated financial statements arising from transactions with GST during the periods in which it was not consolidated in our results include the following: Consolidated Statements of Operations Caption Quarter Ended Six Months Ended Description 2017 Sales to GST Net sales $ 9.0 $ 18.2 Purchases from GST Cost of sales $ 5.5 $ 10.8 Interest expense to GST Interest expense $ 8.9 $ 17.6 |
Pensions and Postretirement B32
Pensions and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our U.S. and foreign defined benefit pension and other postretirement plans for the quarters and six months ended June 30, 2018 and 2017 , are as follows: Quarters Ended June 30, Six Months Ended June 30, Pension Benefits Other Benefits Pension Benefits Other Benefits 2018 2017 2018 2017 2018 2017 2018 2017 (in millions) Service cost $ 1.3 $ 1.0 $ — $ — $ 2.5 $ 2.1 $ 0.1 $ — Interest cost 3.4 3.0 0.1 — 6.8 6.0 0.1 — Expected return on plan assets (5.3 ) (4.5 ) — — (10.7 ) (9.0 ) — — Amortization of prior service cost 0.1 — — — 0.1 — — — Amortization of net loss 1.5 1.8 — — 2.9 3.6 — — Deconsolidation of GST — (0.1 ) — — — (0.3 ) — — Net periodic benefit cost $ 1.0 $ 1.2 $ 0.1 $ — $ 1.6 $ 2.4 $ 0.2 $ — |
Business Segment Information (T
Business Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the quarters and six months ended June 30, 2018 and 2017 were as follows: Quarters Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in millions) Sales Sealing Products $ 255.7 $ 191.3 $ 487.6 $ 370.6 Engineered Products 85.4 75.7 171.3 150.8 Power Systems 53.7 41.6 105.8 84.0 394.8 308.6 764.7 605.4 Intersegment sales (1.2 ) (1.0 ) (2.3 ) (2.0 ) Net sales $ 393.6 $ 307.6 $ 762.4 $ 603.4 Segment Profit (Loss) Sealing Products $ 19.3 $ 21.2 $ 43.0 $ 41.6 Engineered Products 12.1 8.3 26.5 17.8 Power Systems (0.2 ) 6.3 3.8 12.6 Total segment profit 31.2 35.8 73.3 72.0 Corporate expenses (8.5 ) (7.1 ) (17.2 ) (14.6 ) Interest expense, net (7.1 ) (16.1 ) (14.9 ) (30.9 ) Other expense, net (1.8 ) (1.4 ) (2.6 ) (5.9 ) Income before income taxes $ 13.8 $ 11.2 $ 38.6 $ 20.6 |
Schedule of Total Assets Segment | Segment assets are as follows: June 30, December 31, (in millions) Sealing Products $ 1,049.8 $ 1,078.0 Engineered Products 233.9 229.2 Power Systems 224.2 210.8 Corporate 211.3 368.1 $ 1,719.2 $ 1,886.1 |
Disaggregation of Revenue [Table Text Block] | Below is a summary of our third party sales by major end market with which we do business for the quarter ended June 30, 2018 : (in millions) Sealing Products Engineered Products Power Systems Total Aerospace $ 13.2 $ 2.1 $ — $ 15.3 Automotive 1.8 27.5 — 29.3 Chemical and material processing 11.2 14.2 — 25.4 Food and pharmaceutical 9.7 0.2 — 9.9 General industrial 49.3 26.0 — 75.3 Medium-duty/heavy-duty truck 106.2 — — 106.2 Navy and marine 0.2 — 40.5 40.7 Oil and gas 12.9 11.6 3.0 27.5 Power generation 18.5 2.7 10.0 31.2 Semiconductors 30.4 — — 30.4 Other 1.4 0.8 0.2 2.4 Total third party sales $ 254.8 $ 85.1 $ 53.7 $ 393.6 Below is a summary of our third party sales by major end market with which we do business for the six months ended June 30, 2018 : (in millions) Sealing Products Engineered Products Power Systems Total Aerospace $ 24.9 $ 4.3 $ — $ 29.2 Automotive 3.0 55.5 — 58.5 Chemical and material processing 24.2 26.8 — 51.0 Food and pharmaceutical 18.0 0.5 — 18.5 General industrial 94.8 53.2 — 148.0 Medium-duty/heavy-duty truck 195.3 0.3 — 195.6 Navy and marine 0.3 — 71.4 71.7 Oil and gas 27.8 23.2 4.2 55.2 Power generation 32.8 5.4 28.6 66.8 Semiconductors 58.6 — — 58.6 Other 6.0 1.8 1.5 9.3 Total third party sales $ 485.7 $ 171.0 $ 105.7 $ 762.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 Total Level 1 Level 2 Level 3 (in millions) Assets Time deposits $ 25.4 $ 25.4 $ — $ — Foreign currency derivatives 8.9 — 8.9 — Deferred compensation assets 8.5 8.5 — — $ 42.8 $ 33.9 $ 8.9 $ — Liabilities Deferred compensation liabilities $ 8.8 $ 8.8 $ — $ — Fair Value Measurements as of December 31, 2017 Total Level 1 Level 2 Level 3 (in millions) Assets Deferred compensation assets $ 7.8 $ 7.8 $ — $ — Liabilities Deferred compensation liabilities $ 8.9 $ 8.9 $ — $ — |
Schedule of Carrying Value of Financial Instruments | The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximated their respective fair values except for the following instruments: June 30, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value (in millions) Long-term debt $ 488.0 $ 505.3 $ 618.5 $ 645.6 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Loss by Component | Changes in accumulated other comprehensive loss by component (after tax) for the quarter ended June 30, 2018 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ 2.0 $ (40.6 ) $ (38.6 ) Other comprehensive loss before reclassifications (11.0 ) — (11.0 ) Amounts reclassified from accumulated other comprehensive loss — 1.1 1.1 Net current-period other comprehensive income (loss) (11.0 ) 1.1 (9.9 ) Ending balance $ (9.0 ) $ (39.5 ) $ (48.5 ) Changes in accumulated other comprehensive loss by component (after tax) for the quarter ended June 30, 2017 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (17.6 ) $ (48.6 ) $ (66.2 ) Other comprehensive income before reclassifications 9.8 — 9.8 Amounts reclassified from accumulated other comprehensive loss — 0.9 0.9 Net current-period other comprehensive income 9.8 0.9 10.7 Ending balance $ (7.8 ) $ (47.7 ) $ (55.5 ) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2018 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (6.8 ) $ (41.6 ) $ (48.4 ) Other comprehensive loss before reclassifications (2.2 ) — (2.2 ) Amounts reclassified from accumulated other comprehensive loss — 2.1 2.1 Net current-period other comprehensive income (loss) (2.2 ) 2.1 (0.1 ) Ending balance $ (9.0 ) $ (39.5 ) $ (48.5 ) Changes in accumulated other comprehensive loss by component (after tax) for the six months ended June 30, 2017 are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Beginning balance $ (21.2 ) $ (49.7 ) $ (70.9 ) Other comprehensive income before reclassifications 13.4 — 13.4 Amounts reclassified from accumulated other comprehensive loss — 2.0 2.0 Net current-period other comprehensive income 13.4 2.0 15.4 Ending balance $ (7.8 ) $ (47.7 ) $ (55.5 ) |
Summary of Reclassifications Out of Accumulated Other Comprehensive Loss | Reclassifications out of accumulated other comprehensive loss for the quarters and six months ended June 30, 2018 and 2017 are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Amount Reclassified from Accumulated Other Affected Statement of Operations Caption (in millions) 2018 2017 2018 2017 Amortization of pension and other postretirement plans: Actuarial losses $ 1.5 $ 1.8 $ 2.9 $ 3.6 (1) Prior service costs 0.1 — 0.1 — (1) Total before tax $ 1.6 $ 1.8 $ 3.0 $ 3.6 Tax benefit (0.5 ) (0.9 ) (0.9 ) (1.6 ) Income tax expense Net of tax $ 1.1 $ 0.9 $ 2.1 $ 2.0 (1) These accumulated other comprehensive income components are included in the computation of net periodic pension cost. As these are components of net periodic pension cost other than service cost, the affected Statement of Operations caption is other (nonoperating) expense (See Note 11, “Pensions and Postretirement Benefits” for additional details). |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 and 2017 are as follows: 2018 2017 (in millions) Balance at beginning of year $ 5.3 $ 5.0 Net charges to expense 5.8 0.8 Settlements made (2.3 ) (1.3 ) Balance at end of period $ 8.8 $ 4.5 |
Supplemental Guarantor Financ37
Supplemental Guarantor Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Income Statement | ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Quarter Ended June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 274.3 $ 160.9 $ (41.6 ) $ 393.6 Cost of sales — 214.3 105.1 (41.6 ) 277.8 Gross profit — 60.0 55.8 — 115.8 Operating expenses: Selling, general and administrative 11.3 46.4 31.7 — 89.4 Other — 4.1 0.2 — 4.3 Total operating expenses 11.3 50.5 31.9 — 93.7 Operating income (loss) (11.3 ) 9.5 23.9 — 22.1 Interest expense, net (5.5 ) (1.5 ) (0.1 ) — (7.1 ) Other expense — (1.0 ) (0.2 ) — (1.2 ) Income (loss) before income taxes (16.8 ) 7.0 23.6 — 13.8 Income tax benefit (expense) 1.2 1.7 (6.8 ) — (3.9 ) Income (loss) before equity in earnings of subsidiaries (15.6 ) 8.7 16.8 — 9.9 Equity in earnings of subsidiaries, net of tax 25.5 16.8 — (42.3 ) — Net income $ 9.9 $ 25.5 $ 16.8 $ (42.3 ) $ 9.9 Comprehensive income (loss) $ — $ 7.3 $ (2.5 ) $ (4.8 ) $ — ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Quarter Ended June 30, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 214.7 $ 113.1 $ (20.2 ) $ 307.6 Cost of sales — 148.7 74.5 (20.2 ) 203.0 Gross profit — 66.0 38.6 — 104.6 Operating expenses: Selling, general and administrative 6.9 41.0 26.1 — 74.0 Other 0.3 0.7 2.1 — 3.1 Total operating expenses 7.2 41.7 28.2 — 77.1 Operating income (loss) (7.2 ) 24.3 10.4 — 27.5 Interest expense, net (6.9 ) (8.8 ) (0.4 ) — (16.1 ) Other expense — (0.2 ) — — (0.2 ) Income (loss) before income taxes (14.1 ) 15.3 10.0 — 11.2 Income tax benefit (expense) 5.5 (5.9 ) (1.8 ) — (2.2 ) Income (loss) before equity in earnings of subsidiaries (8.6 ) 9.4 8.2 — 9.0 Equity in earnings of subsidiaries, net of tax 17.6 8.2 — (25.8 ) — Net income $ 9.0 $ 17.6 $ 8.2 $ (25.8 ) $ 9.0 Comprehensive income $ 19.7 $ 28.3 $ 17.9 $ (46.2 ) $ 19.7 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Six Months Ended June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 531.6 $ 311.8 $ (81.0 ) $ 762.4 Cost of sales — 399.8 202.7 (81.0 ) 521.5 Gross profit — 131.8 109.1 — 240.9 Operating expenses: Selling, general and administrative 23.4 95.6 62.5 — 181.5 Other 0.1 4.7 0.5 — 5.3 Total operating expenses 23.5 100.3 63.0 — 186.8 Operating income (loss) (23.5 ) 31.5 46.1 — 54.1 Interest income (expense), net (12.2 ) (3.1 ) 0.4 — (14.9 ) Other expense — (0.4 ) (0.2 ) — (0.6 ) Income (loss) before income taxes (35.7 ) 28.0 46.3 — 38.6 Income tax benefit (expense) 7.6 (10.2 ) (13.5 ) — (16.1 ) Income (loss) before equity in earnings of subsidiaries (28.1 ) 17.8 32.8 — 22.5 Equity in earnings of subsidiaries, net of tax 50.6 32.8 — (83.4 ) — Net income $ 22.5 $ 50.6 $ 32.8 $ (83.4 ) $ 22.5 Comprehensive income $ 22.4 $ 44.5 $ 24.6 $ (69.1 ) $ 22.4 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (UNAUDITED) Six Months Ended June 30, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated Net sales $ — $ 419.1 $ 225.2 $ (40.9 ) $ 603.4 Cost of sales — 292.2 145.8 (40.9 ) 397.1 Gross profit — 126.9 79.4 — 206.3 Operating expenses: Selling, general and administrative 14.0 80.9 51.8 — 146.7 Other 0.7 1.0 2.7 — 4.4 Total operating expenses 14.7 81.9 54.5 — 151.1 Operating income (loss) (14.7 ) 45.0 24.9 — 55.2 Interest expense, net (11.7 ) (18.5 ) (0.7 ) — (30.9 ) Other expense — (3.6 ) (0.1 ) — (3.7 ) Income (loss) before income taxes (26.4 ) 22.9 24.1 — 20.6 Income tax benefit (expense) 10.0 (9.4 ) (5.8 ) — (5.2 ) Income (loss) before equity in earnings of subsidiaries (16.4 ) 13.5 18.3 — 15.4 Equity in earnings of subsidiaries, net of tax 31.8 18.3 — (50.1 ) — Net income $ 15.4 $ 31.8 $ 18.3 $ (50.1 ) $ 15.4 Comprehensive income $ 30.8 $ 47.2 $ 31.6 $ (78.8 ) $ 30.8 |
Condensed Cash Flow Statement | ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated NET CASH PROVIDED BY OPERATING ACTIVITIES $ 64.6 $ 131.4 $ 27.6 $ (114.0 ) $ 109.6 INVESTING ACTIVITIES Purchases of property, plant and equipment — (22.9 ) (5.2 ) — (28.1 ) Payments for capitalized internal-use software — (1.8 ) (0.2 ) — (2.0 ) Proceeds from sale of property, plant, and equipment — 25.9 0.4 — 26.3 Net cash provided by (used in) investing activities — 1.2 (5.0 ) — (3.8 ) FINANCING ACTIVITIES Net payments on loans between subsidiaries 0.6 (0.3 ) (0.3 ) — — Intercompany dividends — — (114.0 ) 114.0 — Proceeds from debt — 358.6 — — 358.6 Repayments of debt — (489.7 ) — — (489.7 ) Repurchase of common stock (49.5 ) — — — (49.5 ) Dividends paid (10.3 ) — — — (10.3 ) Other (5.4 ) (1.2 ) — — (6.6 ) Net cash used in financing activities (64.6 ) (132.6 ) (114.3 ) 114.0 (197.5 ) Effect of exchange rate changes on cash and cash equivalents — — (4.2 ) — (4.2 ) Net decrease in cash and cash equivalents — — (95.9 ) — (95.9 ) Cash and cash equivalents at beginning of period — — 189.3 — 189.3 Cash and cash equivalents at end of period $ — $ — $ 93.4 $ — $ 93.4 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (12.0 ) $ 18.7 $ 21.4 $ (0.1 ) $ 28.0 INVESTING ACTIVITIES Purchases of property, plant and equipment — (11.2 ) (4.0 ) — (15.2 ) Payments for capitalized internal-use software — (1.9 ) — — (1.9 ) Deconsolidation of OldCo — (4.8 ) — — (4.8 ) Acquisitions, net of cash acquired — (39.7 ) — — (39.7 ) Other — — 0.3 — 0.3 Net cash used in investing activities — (57.6 ) (3.7 ) — (61.3 ) FINANCING ACTIVITIES Net payments on loans between subsidiaries (116.8 ) 120.1 (3.3 ) — — Intercompany dividends — — (0.1 ) 0.1 — Proceeds from debt 151.5 196.6 3.5 — 351.6 Repayments of debt — (278.6 ) (1.0 ) — (279.6 ) Repurchase of common stock (9.8 ) — — — (9.8 ) Dividends paid (9.6 ) — — — (9.6 ) Other (3.3 ) — — — (3.3 ) Net cash provided by (used in) financing activities 12.0 38.1 (0.9 ) 0.1 49.3 Effect of exchange rate changes on cash and cash equivalents — — 4.6 — 4.6 Net increase (decrease) in cash and cash equivalents — (0.8 ) 21.4 — 20.6 Cash and cash equivalents at beginning of period — 0.8 110.7 — 111.5 Cash and cash equivalents at end of period $ — $ — $ 132.1 $ — $ 132.1 |
Condensed Balance Sheet | ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) As of June 30, 2018 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ 93.4 $ — $ 93.4 Accounts receivable, net — 196.8 93.6 — 290.4 Intercompany receivables — 23.1 10.0 (33.1 ) — Inventories — 148.4 72.7 — 221.1 Income tax receivable 43.7 1.0 — (8.0 ) 36.7 Prepaid expenses and other current assets 4.9 20.2 11.7 — 36.8 Total current assets 48.6 389.5 281.4 (41.1 ) 678.4 Property, plant and equipment, net — 206.8 86.7 — 293.5 Goodwill — 261.0 73.2 — 334.2 Other intangible assets, net — 253.2 58.4 — 311.6 Intercompany receivables — 23.2 0.6 (23.8 ) — Investment in subsidiaries 1,297.9 372.2 — (1,670.1 ) — Other assets 21.4 73.9 10.2 (4.0 ) 101.5 Total assets $ 1,367.9 $ 1,579.8 $ 510.5 $ (1,739.0 ) $ 1,719.2 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt $ — $ 0.2 $ — $ — $ 0.2 Accounts payable 3.7 92.6 38.2 — 134.5 Intercompany payables — 10.0 23.1 (33.1 ) — Accrued expenses 15.1 72.0 43.0 (8.0 ) 122.1 Total current liabilities 18.8 174.8 104.3 (41.1 ) 256.8 Long-term debt 444.8 43.0 — — 487.8 Intercompany payables 23.5 — 0.3 (23.8 ) — Other liabilities 16.1 64.1 33.7 (4.0 ) 109.9 Total liabilities 503.2 281.9 138.3 (68.9 ) 854.5 Shareholders’ equity 864.7 1,297.9 372.2 (1,670.1 ) 864.7 Total liabilities and equity $ 1,367.9 $ 1,579.8 $ 510.5 $ (1,739.0 ) $ 1,719.2 ENPRO INDUSTRIES, INC. CONDENSED CONSOLIDATING BALANCE SHEETS (UNAUDITED) As of December 31, 2017 (in millions) Guarantor Non-guarantor Parent Subsidiaries Subsidiaries Eliminations Consolidated ASSETS Current assets Cash and cash equivalents $ — $ — $ 189.3 $ — $ 189.3 Accounts receivable, net — 180.1 81.6 — 261.7 Intercompany receivables — 24.0 6.7 (30.7 ) — Inventories — 135.4 68.7 — 204.1 Income tax receivable 132.3 1.3 2.0 (22.4 ) 113.2 Prepaid expenses and other current assets 4.3 26.5 20.5 — 51.3 Total current assets 136.6 367.3 368.8 (53.1 ) 819.6 Property, plant and equipment, net — 206.8 90.1 — 296.9 Goodwill — 261.0 75.1 — 336.1 Other intangible assets, net — 284.2 62.8 — 347.0 Intercompany receivables — 22.9 — (22.9 ) — Investment in subsidiaries 1,261.3 460.1 — (1,721.4 ) — Other assets 12.8 59.3 14.4 — 86.5 Total assets $ 1,410.7 $ 1,661.6 $ 611.2 $ (1,797.4 ) $ 1,886.1 LIABILITIES AND EQUITY Current liabilities Current maturities of long-term debt — 0.2 — — 0.2 Accounts payable 2.3 82.5 45.9 — 130.7 Intercompany payables — 6.7 24.0 (30.7 ) — Accrued expenses 22.8 90.1 46.7 (22.4 ) 137.2 Total current liabilities 25.1 179.5 116.6 (53.1 ) 268.1 Long-term debt 444.2 174.1 — — 618.3 Intercompany payables 22.9 — — (22.9 ) — Other liabilities 15.7 46.7 34.5 — 96.9 Total liabilities 507.9 400.3 151.1 (76.0 ) 983.3 Shareholders’ equity 902.8 1,261.3 460.1 (1,721.4 ) 902.8 Total liabilities and equity $ 1,410.7 $ 1,661.6 $ 611.2 $ (1,797.4 ) $ 1,886.1 |
Overview, Basis of Presentati38
Overview, Basis of Presentation, Significant Accounting Policy Update, and Recently Issued Authoritative Accounting Guidance - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cost of sales | $ 277.8 | $ 203 | $ 521.5 | $ 397.1 | ||
Accounts receivable, net | 290.4 | 290.4 | $ 261.7 | |||
Inventories | 221.1 | 221.1 | 204.1 | |||
Change in accounting for forfeitures awards | 0.5 | $ 0.2 | $ 1.1 | $ 0.5 | ||
Accounts Receivable Payment Terms Standard | 30 days | |||||
Accounts Receivable Payment Terms Extended | 90 days | |||||
Operating Leases, Future Minimum Payments Due | $ 49.4 | |||||
Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Sales Revenue, Goods, Net | $ 1.6 | |||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.4 | |||||
Cost of sales | 1 | |||||
Accounts receivable, net | 1.6 | 1.6 | ||||
Inventories | $ (1) | $ (1) | ||||
Accounting Standards Update 2016-06 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 0.7 |
Revenue from Contracts with C39
Revenue from Contracts with Customers Revenue from Contracts with Customers - Schedule of Information Regarding Contracts Accounted for Under Percentage-of-Completion Method (Detail) - Other Liabilities [Member] - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Cumulative revenues recognized on uncompleted contracts | $ 390.6 | $ 350.3 |
Cumulative billings on uncompleted contracts | 345.4 | 304.2 |
Revenues and billing on uncompleted contracts | $ 45.2 | $ 46.1 |
Revenue from Contracts with C40
Revenue from Contracts with Customers Revenue from Contracts with Customers - Schedule of Uncompleted Contracts Reflected in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued expenses (billings in excess of revenue recognized) | $ (7.2) | $ (5.7) |
Accounts Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable, net (contract revenue recognized in excess of billings) | 52.3 | 51.8 |
Accrued Liabilities [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accrued expenses (billings in excess of revenue recognized) | (7.1) | (5.7) |
Other Liabilities [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Revenues and billing on uncompleted contracts | $ 45.2 | $ 46.1 |
Revenue from Contracts with C41
Revenue from Contracts with Customers Revenue from Contracts with Customers - Contract with Customer, Asset and Liability (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance at beginning of period | $ 5.7 |
Additional billings in excess of revenue recognized | 12.9 |
Revenue recognized | (11.4) |
Balance at end of period | $ 7.2 |
Revenue from Contracts with C42
Revenue from Contracts with Customers Revenue from Contracts with Customers - Other (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | ||
Retainage Deposit | $ 2.6 | $ 2.7 |
Contract with Customer, Liability, Revenue Recognized | $ 385.9 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Percent Within One Year | 94.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Restructuring and Disposal of43
Restructuring and Disposal of Assets Restructuring and Disposal of Assets (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018USD ($) | Jun. 30, 2018USD ($) | |
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ (21.7) | |
Severance Costs | 1.2 | |
Impairment of Long-Lived Assets to be Disposed of | 5.1 | |
Impairment of Intangible Assets, Finite-lived | 19.1 | |
Other Restructuring Costs | 0.4 | |
Restructuring Costs and Asset Impairment Charges | 4.1 | |
Inventory Write-down | 2.5 | |
Restructuring Reserve | $ 1.6 | $ 1.6 |
Employee Severance [Member] | ||
Effects on Future Earnings and Cash Flows Resulting from Exit Plan [Line Items] | ||
Effect on Future Earnings, Amount | $ 3.5 |
Income Taxes Income Taxes - Add
Income Taxes Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | |||
Effective Income Tax Rate Reconciliation, Percent | 28.60% | 19.60% | 41.80% | 25.20% | |
Foreign Earnings Repatriated | $ 114 | ||||
Income Tax Expense (Benefit) | $ 3.9 | $ 2.2 | 16.1 | $ 5.2 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ 13.8 | $ 11.2 | $ 38.6 | $ 20.6 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 9.9 | $ 9 | $ 22.5 | $ 15.4 |
Weighted-Shares - basic (in shares) | 20.9 | 21.3 | 21.1 | 21.4 |
Share-based awards (in shares) | 0.2 | 0.5 | 0.2 | 0.4 |
Weighted-average shares - diluted (in shares) | 21.1 | 21.8 | 21.3 | 21.8 |
Basic (in dollars per share) | $ 0.47 | $ 0.42 | $ 1.06 | $ 0.72 |
Diluted (in dollars per share) | $ 0.47 | $ 0.41 | $ 1.05 | $ 0.71 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 132.6 | $ 121.4 |
Work in process | 36.2 | 33 |
Raw materials and supplies | 62.6 | 59.2 |
Inventory Gross | 231.4 | 213.6 |
Reserve to reduce certain inventories to LIFO basis | (10.7) | (10.2) |
Manufacturing inventories | 220.7 | 203.4 |
Incurred costs relating to long-term contracts | 0.4 | 0.7 |
Total inventories | $ 221.1 | $ 204.1 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 336.1 |
Change due to foreign currency translation | (1.9) |
Goodwill, ending balance | 334.2 |
Sealing Products [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 313.2 |
Change due to foreign currency translation | (1.5) |
Goodwill, ending balance | 311.7 |
Engineered Products [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 10.9 |
Change due to foreign currency translation | (0.1) |
Goodwill, ending balance | 10.8 |
Power Systems [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 12 |
Change due to foreign currency translation | (0.3) |
Goodwill, ending balance | $ 11.7 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortized, Gross Carrying Amount | $ 461.6 | $ 488.7 |
Amortized, Accumulated Amortization | 229.2 | 221 |
Intangible Assets, Gross (Excluding Goodwill) | 540.8 | 568 |
Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived, Gross Carrying Amount | 79.2 | 79.3 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized, Gross Carrying Amount | 285.3 | 311.2 |
Amortized, Accumulated Amortization | 141.9 | 138 |
Existing technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized, Gross Carrying Amount | 112.5 | 113 |
Amortized, Accumulated Amortization | 41.3 | 37.5 |
Trademarks [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized, Gross Carrying Amount | 35.4 | 35.8 |
Amortized, Accumulated Amortization | 22.6 | 22.3 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortized, Gross Carrying Amount | 28.4 | 28.7 |
Amortized, Accumulated Amortization | $ 23.4 | $ 23.2 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Amortization expense | $ 7.4 | $ 5.1 | $ 14.9 | $ 10.2 | |
Sealing Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | 27.8 | 27.8 | $ 27.8 | ||
Engineered Products [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 154.8 | $ 154.8 | $ 154.8 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 49.3 | $ 63.7 |
Interest | 8.2 | 8.6 |
Customer Advances | 9.1 | 7.1 |
Environmental | 7.4 | 9.2 |
Income and other taxes | 12.3 | 14.3 |
Other | 35.8 | 34.3 |
Accrued expenses | $ 122.1 | $ 137.2 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Amounts Included in Financial Statements Arising From Transactions with GST (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Net Sales [Member] | ||
Related Party Transaction [Line Items] | ||
Sales to GST | $ 9 | $ 18.2 |
Cost of Sales [Member] | ||
Related Party Transaction [Line Items] | ||
Purchases from GST | 5.5 | 10.8 |
Interest Expense [Member] | ||
Related Party Transaction [Line Items] | ||
Interest expense to GST | $ 8.9 | $ 17.6 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Mar. 31, 2017 | Sep. 30, 2014 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Credit facility maximum availability | $ 350,000,000 | ||
Maximum Borrowing Capacity Expansion Threshold | $ 225,000,000 | ||
Maximum Borrowing Capacity Expansion Threshold Percent | 100.00% | ||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 100,000,000 | ||
Credit facility borrowing capacity | 291,400,000 | ||
Letter of credit outstanding | 16,100,000 | ||
Long-term Line of Credit | $ 42,500,000 | ||
London Interbank Offered Rate (LIBOR) [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 1.75% | ||
Base Rate [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Description of Variable Rate Basis | 0.75% | ||
Senior Notes [Member] | |||
Line of Credit Facility [Line Items] | |||
Senior Notes | $ 150,000,000 | $ 300,000,000 | |
Interest rate of debentures | 5.875% | ||
Debt discount amount | $ 2,400,000 | ||
Effective interest rate of debt instrument | 5.66% | 6.00% | |
Debt Instrument, Unamortized Premium | $ 1,500,000 |
Pensions and Postretirement B53
Pensions and Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 20 | $ 1.8 | ||
Pension Benefits [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Service cost | $ 1.3 | $ 1 | 2.5 | 2.1 |
Interest cost | 3.4 | 3 | 6.8 | 6 |
Expected return on plan assets | (5.3) | (4.5) | (10.7) | (9) |
Amortization of Prior Service Cost | 0.1 | 0 | 0.1 | 0 |
Amortization of net loss | 1.5 | 1.8 | 2.9 | 3.6 |
Deconsolidation of GST | 0 | (0.1) | 0 | (0.3) |
Net periodic benefit cost | 1 | 1.2 | 1.6 | 2.4 |
Other Benefits [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Service cost | 0 | 0 | 0.1 | 0 |
Interest cost | 0.1 | 0 | 0.1 | 0 |
Amortization of Prior Service Cost | 0 | 0 | ||
Net periodic benefit cost | $ 0.1 | $ 0 | $ 0.2 | $ 0 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Aug. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Oct. 30, 2017 | |
Subsequent Event [Line Items] | ||||||
Cash dividends per share (in dollars per share) | $ 0.24 | $ 0.22 | $ 0.48 | $ 0.44 | ||
Payments of Ordinary Dividends, Common Stock | $ 10,300,000 | $ 9,600,000 | ||||
Stock Repurchase Program, Authorized Amount | $ 50,000,000 | |||||
Stock Repurchased Shares (in shares) | 0.7 | |||||
RepurchaseAveragePricePerShare | $ 49,900,000 | |||||
Payments for Repurchase of Common Stock | 49,500,000 | $ 9,800,000 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 100,000 | $ 100,000 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Cash dividends per share (in dollars per share) | $ 0.24 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number Of Reportable Segments | 3 |
Business Segment Information 56
Business Segment Information - Schedule of Segment Operating Results and Other Financial Data (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Total product segment sales | $ 393.6 | $ 307.6 | $ 762.4 | $ 603.4 |
Segment profit | 22.1 | 27.5 | 54.1 | 55.2 |
Other expense, net | (1.2) | (0.2) | (0.6) | (3.7) |
Income before income taxes | 13.8 | 11.2 | 38.6 | 20.6 |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total product segment sales | 394.8 | 308.6 | 764.7 | 605.4 |
Segment profit | 31.2 | 35.8 | 73.3 | 72 |
Intersegment Sales [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total product segment sales | 1.2 | 1 | 2.3 | 2 |
Corporate expense [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Segment profit | (8.5) | (7.1) | (17.2) | (14.6) |
Interest expense, net | (7.1) | (16.1) | (14.9) | (30.9) |
Other expense, net | (1.8) | (1.4) | (2.6) | (5.9) |
Income before income taxes | 13.8 | 11.2 | 38.6 | 20.6 |
Sealing Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total product segment sales | 255.7 | 191.3 | 487.6 | 370.6 |
Segment profit | 19.3 | 21.2 | 43 | 41.6 |
Engineered Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total product segment sales | 85.4 | 75.7 | 171.3 | 150.8 |
Segment profit | 12.1 | 8.3 | 26.5 | 17.8 |
Power Systems [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total product segment sales | 53.7 | 41.6 | 105.8 | 84 |
Segment profit | $ (0.2) | $ 6.3 | $ 3.8 | $ 12.6 |
Business Segment Information 57
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule Of Assets By Segment [Line Items] | ||
Assets | $ 1,719.2 | $ 1,886.1 |
Operating Segments [Member] | Sealing Products [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | 1,049.8 | 1,078 |
Operating Segments [Member] | Engineered Products [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | 233.9 | 229.2 |
Operating Segments [Member] | Power Systems [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | 224.2 | 210.8 |
Corporate expense [Member] | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | $ 211.3 | $ 368.1 |
Business Segment Information Bu
Business Segment Information Business Segment Information - Revenue by end market (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | $ 393.6 | $ 762.4 |
Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 254.8 | 485.7 |
Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 85.1 | 171 |
Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 53.7 | 105.7 |
Aerospace [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 15.3 | 29.2 |
Automotive [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 29.3 | 58.5 |
Chemical and Material Processing [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 25.4 | 51 |
Food and Pharmaceutical [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 9.9 | 18.5 |
General Industrial [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 75.3 | 148 |
Medium-duty/heavy-duty truck [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 106.2 | 195.6 |
Navy and Marine [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 40.7 | 71.7 |
Oil and Gas [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 27.5 | 55.2 |
Power Generation [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 31.2 | 66.8 |
Semiconductors [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 30.4 | 58.6 |
Other [Domain] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 2.4 | 9.3 |
Aerospace [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 13.2 | 24.9 |
Aerospace [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 2.1 | 4.3 |
Aerospace [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Automotive [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 1.8 | 3 |
Automotive [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 27.5 | 55.5 |
Automotive [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Chemical and Material Processing [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 11.2 | 24.2 |
Chemical and Material Processing [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 14.2 | 26.8 |
Chemical and Material Processing [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Food and Pharmaceutical [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 9.7 | 18 |
Food and Pharmaceutical [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0.2 | 0.5 |
Food and Pharmaceutical [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
General Industrial [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 49.3 | 94.8 |
General Industrial [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 26 | 53.2 |
General Industrial [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Medium-duty/heavy-duty truck [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 106.2 | 195.3 |
Medium-duty/heavy-duty truck [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0.3 |
Medium-duty/heavy-duty truck [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Navy and Marine [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0.2 | 0.3 |
Navy and Marine [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Navy and Marine [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 40.5 | 71.4 |
Oil and Gas [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 12.9 | 27.8 |
Oil and Gas [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 11.6 | 23.2 |
Oil and Gas [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 3 | 4.2 |
Power Generation [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 18.5 | 32.8 |
Power Generation [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 2.7 | 5.4 |
Power Generation [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 10 | 28.6 |
Semiconductors [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 30.4 | 58.6 |
Semiconductors [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Semiconductors [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0 | 0 |
Other [Domain] | Sealing Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 1.4 | 6 |
Other [Domain] | Engineered Products [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | 0.8 | 1.8 |
Other [Domain] | Power Systems [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Third Party Sales | $ 0.2 | $ 1.5 |
Derivatives and Hedging Derivat
Derivatives and Hedging Derivatives and Hedging (Details) € in Millions, $ in Millions | Mar. 31, 2018EUR (€) | Mar. 31, 2018USD ($) |
Summary of Credit Derivatives [Abstract] | ||
Derivative, Notional Amount (USD) | $ | $ 200 | |
Derivative, Notional Amount (EUR) | € | € 161.8 | |
Debt, Weighted Average Interest Rate | 3.29% | 3.29% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Assets measured at fair value | $ 42.8 | |
Bank Time Deposits [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Cash equivalents | 25.4 | |
Currency Swap [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | 8.9 | |
Deferred Compensation [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Assets measured at fair value | 8.5 | $ 7.8 |
Liabilities measured at fair value | 8.8 | 8.9 |
Level 1 [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Assets measured at fair value | 33.9 | |
Level 1 [Member] | Bank Time Deposits [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Cash equivalents | 25.4 | |
Level 1 [Member] | Deferred Compensation [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Assets measured at fair value | 8.5 | 7.8 |
Liabilities measured at fair value | 8.8 | $ 8.9 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Assets measured at fair value | 8.9 | |
Fair Value, Inputs, Level 2 [Member] | Currency Swap [Member] | ||
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items] | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | $ 8.9 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Detail) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, Carrying Value | $ 488 | $ 618.5 |
Long-term Debt, Fair Value | $ 505.3 | $ 645.6 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Component (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | $ (38.6) | $ (66.2) | $ (48.4) | $ (70.9) |
Other comprehensive income before reclassifications | (11) | 9.8 | (2.2) | 13.4 |
Amounts reclassified from accumulated other comprehensive income loss | 1.1 | 0.9 | 2.1 | 2 |
Net current-period other comprehensive income (loss) | (9.9) | 10.7 | (0.1) | 15.4 |
Ending balance | (48.5) | (55.5) | (48.5) | (55.5) |
Unrealized Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | 2 | (17.6) | (6.8) | (21.2) |
Other comprehensive income before reclassifications | (11) | 9.8 | (2.2) | 13.4 |
Amounts reclassified from accumulated other comprehensive income loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive income (loss) | (11) | 9.8 | (2.2) | 13.4 |
Ending balance | (9) | (7.8) | (9) | (7.8) |
Pension and Other Postretirement Plans [Member] | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning balance | (40.6) | (48.6) | (41.6) | (49.7) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income loss | 1.1 | 0.9 | 2.1 | 2 |
Net current-period other comprehensive income (loss) | 1.1 | 0.9 | 2.1 | 2 |
Ending balance | $ (39.5) | $ (47.7) | $ (39.5) | $ (47.7) |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Loss - Summary of Reclassifications Out of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||||
Tax Benefit | $ 3.9 | $ 2.2 | $ 16.1 | $ 5.2 |
Net of tax | 9.9 | 9 | 22.5 | 15.4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Pension Plans Postretirement And Other Employee Benefits [Line Items] | ||||
Actuarial losses | 1.5 | 1.8 | 2.9 | 3.6 |
Prior service costs | 0.1 | 0 | 0.1 | 0 |
Total before Net | 1.6 | 1.8 | 3 | 3.6 |
Tax Benefit | (0.5) | (0.9) | (0.9) | (1.6) |
Net of tax | $ 1.1 | $ 0.9 | $ 2.1 | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions | Sep. 30, 2003sitemi | Apr. 30, 2017EUR (€) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Jun. 30, 2016USD ($)site | Dec. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2018EUR (€)site | Jun. 30, 2018USD ($)site | Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($)site | Oct. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015site | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($)mi | Apr. 11, 2014mi |
Site Contingency [Line Items] | ||||||||||||||||||
Site Contingency, Number of Sites Subject to Remediation Activities, Total | site | 15 | 15 | ||||||||||||||||
Site Contingency, Sites Subject to Remediation Activities, Cost per Site, De Minimis Threshold | $ 100,000 | |||||||||||||||||
Site Contingency, Number of Sites Subject to Remediation Activities, Investigation Completed | site | 11 | 11 | ||||||||||||||||
Site Contingency, Number of Sites Subject to Remediation Activities, Investigation in Progress | site | 4 | 4 | ||||||||||||||||
Site Contingency, Number of Sites Subject to Remediation Activities for Soil and Groundwater Contamination | site | 14 | 14 | ||||||||||||||||
Accrual for Environmental Loss Contingencies | $ 27,300,000 | $ 27,300,000 | $ 25,300,000 | |||||||||||||||
Site Contingency Number of Other Potentially Responsible Parties | site | 70 | 120 | 120 | |||||||||||||||
SiteContingency Remidial Investigation Feasibility Study Estimate Of Cost | $ 726,000,000 | |||||||||||||||||
Lower Passaic River Study Area, Diamond Alkali Superfund Site, New Jersey [Abstract] | ||||||||||||||||||
Site Contingency, Focused Feasibility Study, Estimate of Cost, Low End of Range | $ 165,000,000 | |||||||||||||||||
Accrual for Environmental Loss Contingencies, Provision for New Losses | $ 1,900,000 | $ 1,100,000 | $ 1,100,000 | |||||||||||||||
Investigative Sites Notice From The EPA | site | 6 | |||||||||||||||||
Accrual for Environmental Loss Contingencies, Component Amount | 3,100,000 | |||||||||||||||||
Loss contingency percentage of damages allocated to counterparty | 35.00% | |||||||||||||||||
Loss contingency percentage of damages allocated to company | 65.00% | |||||||||||||||||
Loss Contingency, Estimate of Possible Loss | € | € 0.4 | |||||||||||||||||
Loss Contingency Accrual, Payments | $ 78,800,000 | 350,000,000 | ||||||||||||||||
Lower Passaic River Study Area, Focused Feasibility Study, April 11, 2014 [Member] | ||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||
Accrual for Environmental Loss Contingencies | $ 3,500,000 | |||||||||||||||||
Coltec Industries Inc. [Member] | ||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||
Accrual for Environmental Loss Contingencies | 2,600,000 | $ 1,300,000 | ||||||||||||||||
Lower Passaic River Study Area, Diamond Alkali Superfund Site, New Jersey [Abstract] | ||||||||||||||||||
Accrual for Environmental Loss Contingencies, Provision for New Losses | $ 5,700,000 | |||||||||||||||||
Minimum [Member] | ||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||
Portion Of Site Subject To Remediation | mi | 9 | 8 | ||||||||||||||||
Site Contingency, Loss Exposure in Excess of Accrual, Best Estimate | € | € 1.8 | € 5.1 | ||||||||||||||||
Lower Passaic River Study Area, Diamond Alkali Superfund Site, New Jersey [Abstract] | ||||||||||||||||||
Site contingency, loss exposure in excess of accrual including portion allocated to counterparty, best estimate | € | 7.9 | |||||||||||||||||
Loss Contingency Accrual | € | 0.4 | |||||||||||||||||
Minimum [Member] | Lower Passaic River Study Area, Focused Feasibility Study, April 11, 2014 [Member] | ||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||
Site Contingency, Loss Exposure in Excess of Accrual, Best Estimate | $ 953,000,000 | |||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||
Portion Of Site Subject To Remediation | mi | 17 | |||||||||||||||||
Site Contingency, Loss Exposure in Excess of Accrual, Best Estimate | € 2.1 | $ 1,730,000,000 | € 6.6 | $ 1,380,000,000 | ||||||||||||||
Lower Passaic River Study Area, Diamond Alkali Superfund Site, New Jersey [Abstract] | ||||||||||||||||||
Site contingency, loss exposure in excess of accrual including portion allocated to counterparty, best estimate | € | € 10.2 | |||||||||||||||||
Arizona | ||||||||||||||||||
Lower Passaic River Study Area, Diamond Alkali Superfund Site, New Jersey [Abstract] | ||||||||||||||||||
Investigative Sites Notice From The EPA | site | 2 | |||||||||||||||||
Asbestos Issue [Member] | ||||||||||||||||||
Lower Passaic River Study Area, Diamond Alkali Superfund Site, New Jersey [Abstract] | ||||||||||||||||||
Loss Contingency Accrual, Payments | $ 50,000,000 | |||||||||||||||||
Loss Contingency Insurance Coverage Amount Available Pending Future Claims | $ 17,100,000 |
Commitments and Contingencies65
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Balance at beginning of year | $ 5.3 | $ 5 |
Net charges to expense to expense | 5.8 | 0.8 |
Settlements made | (2.3) | (1.3) |
Balance at end of period | 8.8 | $ 4.5 |
Product Warranty Expense | $ 4.9 |
Commitments and Contingencies66
Commitments and Contingencies - Additional Information (Detail) $ / shares in Units, € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||
Apr. 30, 2017EUR (€) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017EUR (€) | Jun. 30, 2016USD ($)site | Dec. 31, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2018EUR (€)site | Jun. 30, 2018USD ($) | Sep. 30, 2016$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jun. 30, 2018USD ($)site | Oct. 31, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2014mi | Apr. 11, 2014mi | Sep. 30, 2003mi | |
Loss Contingencies [Line Items] | ||||||||||||||||||
Loss Contingency Accrual, Payments | $ 78.8 | $ 350 | ||||||||||||||||
Loss Contingency Accrual, Disclosures [Abstract] | ||||||||||||||||||
Option Indexed to Issuer's Equity, Strike Price (in dollars per share) | $ / shares | $ 1 | |||||||||||||||||
Option Indexed To Issuers Equity Settlement Alternatives Amount At Fair value | 20 | $ 20 | ||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Loss Contingency Accrual Payments Future Interest Requirements | $ 1.2 | |||||||||||||||||
Estimated Insurance Recoveries | 25 | |||||||||||||||||
Accrual for Environmental Loss Contingencies, Provision for New Losses | 1.9 | $ 1.1 | $ 1.1 | |||||||||||||||
Accrual for Environmental Loss Contingencies | 27.3 | 27.3 | $ 25.3 | |||||||||||||||
Investigative Sites Notice From The EPA | site | 6 | |||||||||||||||||
Site Contingency, Focused Feasibility Study, Estimate of Cost, Low End of Range | $ 165 | |||||||||||||||||
Site Contingency, Number of Sites Subject to Remediation Activities, Total | site | 15 | 15 | ||||||||||||||||
Loss Contingency, Estimate of Possible Loss | € | € 0.4 | |||||||||||||||||
Asbestos Issue [Member] | ||||||||||||||||||
Loss Contingencies [Line Items] | ||||||||||||||||||
Loss Contingency Accrual, Payments | $ 50 | |||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Loss Contingency, Insurance Coverage, Amount | $ 32.1 | |||||||||||||||||
Loss Contingency, Receivable | 17.1 | |||||||||||||||||
Estimated Insurance Recoveries | 4.6 | |||||||||||||||||
GST, LLC [Member] | Asbestos Issue [Member] | ||||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Loss Contingency, Insurance Coverage, Amount Submitted for Reimbursement | 15 | |||||||||||||||||
Loss Contingency, Insurance Coverage, Amount Recovered, Insolvent Carrier | 8.8 | |||||||||||||||||
OldCo [Member] | ||||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Loss Contingency, Insurance Coverage, Amount | 15 | |||||||||||||||||
New Coltec [Member] | ||||||||||||||||||
Loss Contingency Accrual, Disclosures [Abstract] | ||||||||||||||||||
Litigation Settlement, Amount Awarded to other third party | 20 | |||||||||||||||||
Minimum [Member] | ||||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Site Contingency, Loss Exposure in Excess of Accrual, Best Estimate | € | € 1.8 | € 5.1 | ||||||||||||||||
Portion Of Site Subject To Remediation | mi | 9 | 8 | ||||||||||||||||
Maximum [Member] | ||||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Site Contingency, Loss Exposure in Excess of Accrual, Best Estimate | € 2.1 | $ 1,730 | € 6.6 | $ 1,380 | ||||||||||||||
Portion Of Site Subject To Remediation | mi | 17 | |||||||||||||||||
New Coltec [Member] | ||||||||||||||||||
Loss Contingency Accrual, Disclosures [Abstract] | ||||||||||||||||||
Litigation Settlement, Amount Awarded to other third party | $ 60 | 40 | ||||||||||||||||
Onondaga Site EPA Remedial Investigation [Domain] | ||||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Accrual for Environmental Loss Contingencies, Provision for New Losses | $ 1.5 | |||||||||||||||||
Coltec Industries Inc. [Member] | ||||||||||||||||||
Product Liability Contingency, Insurance Coverage [Abstract] | ||||||||||||||||||
Accrual for Environmental Loss Contingencies, Provision for New Losses | $ 5.7 | |||||||||||||||||
Accrual for Environmental Loss Contingencies | $ 2.6 | $ 1.3 |
Commitments and Contingencies67
Commitments and Contingencies - Schedule of Future Insurance Proceeds (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2018 | |
Loss Contingencies [Line Items] | ||
Estimated Insurance Recoveries | $ 25 | |
Loss Contingency, Estimated Insurance Recoveries [Abstract] | ||
Product Liability Contingency, Uncertainties from Insurance | $ 15 | |
Asbestos Issue [Member] | ||
Loss Contingencies [Line Items] | ||
Estimated Insurance Recoveries | 4.6 | |
Loss Contingency, Estimated Insurance Recoveries [Abstract] | ||
Loss Contingency, Estimated Insurance Recoveries, Year Two | 5.8 | |
Loss Contingency Estimated Insurance Recoveries Year Four | 2.5 | |
GST, LLC [Member] | Asbestos Issue [Member] | ||
Loss Contingency, Estimated Insurance Recoveries [Abstract] | ||
Loss Contingency, Insurance Coverage, Amount Recovered, Insolvent Carrier | $ 8.8 |
Supplemental Guarantor Financ68
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | $ 393.6 | $ 307.6 | $ 762.4 | $ 603.4 |
Cost of sales | 277.8 | 203 | 521.5 | 397.1 |
Gross Profit | 115.8 | 104.6 | 240.9 | 206.3 |
Operating expenses: | ||||
Selling, general and administrative | 89.4 | 74 | 181.5 | 146.7 |
Other | 4.3 | 3.1 | 5.3 | 4.4 |
Total operating expenses | 93.7 | 77.1 | 186.8 | 151.1 |
Operating income (loss) | 22.1 | 27.5 | 54.1 | 55.2 |
Interest income (expense), net | (7.1) | (16.1) | (14.9) | (30.9) |
Other expense | (1.2) | (0.2) | (0.6) | (3.7) |
Income before income taxes | 13.8 | 11.2 | 38.6 | 20.6 |
Income tax benefit (expense) | (3.9) | (2.2) | (16.1) | (5.2) |
Income (loss) before equity in earnings of subsidiaries | 9.9 | 9 | 22.5 | 15.4 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 9.9 | 9 | 22.5 | 15.4 |
Comprehensive income (loss) | 0 | 19.7 | 22.4 | 30.8 |
Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | (41.6) | (20.2) | (81) | (40.9) |
Cost of sales | (41.6) | (20.2) | (81) | (40.9) |
Gross Profit | 0 | 0 | 0 | 0 |
Operating expenses: | ||||
Selling, general and administrative | 0 | 0 | 0 | 0 |
Other | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Interest income (expense), net | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | 0 | 0 |
Income before income taxes | 0 | 0 | 0 | 0 |
Income tax benefit (expense) | 0 | 0 | 0 | 0 |
Income (loss) before equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Equity in earnings of subsidiaries, net of tax | (42.3) | (25.8) | (83.4) | (50.1) |
Net income | (42.3) | (25.8) | (83.4) | (50.1) |
Comprehensive income (loss) | (4.8) | (46.2) | (69.1) | (78.8) |
Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross Profit | 0 | 0 | 0 | 0 |
Operating expenses: | ||||
Selling, general and administrative | 11.3 | 6.9 | 23.4 | 14 |
Other | 0 | 0.3 | 0.1 | 0.7 |
Total operating expenses | 11.3 | 7.2 | 23.5 | 14.7 |
Operating income (loss) | (11.3) | (7.2) | (23.5) | (14.7) |
Interest income (expense), net | (5.5) | (6.9) | (12.2) | (11.7) |
Other expense | 0 | 0 | 0 | 0 |
Income before income taxes | (16.8) | (14.1) | (35.7) | (26.4) |
Income tax benefit (expense) | 1.2 | 5.5 | 7.6 | 10 |
Income (loss) before equity in earnings of subsidiaries | (15.6) | (8.6) | (28.1) | (16.4) |
Equity in earnings of subsidiaries, net of tax | 25.5 | 17.6 | 50.6 | 31.8 |
Net income | 9.9 | 9 | 22.5 | 15.4 |
Comprehensive income (loss) | 0 | 19.7 | 22.4 | 30.8 |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 274.3 | 214.7 | 531.6 | 419.1 |
Cost of sales | 214.3 | 148.7 | 399.8 | 292.2 |
Gross Profit | 60 | 66 | 131.8 | 126.9 |
Operating expenses: | ||||
Selling, general and administrative | 46.4 | 41 | 95.6 | 80.9 |
Other | 4.1 | 0.7 | 4.7 | 1 |
Total operating expenses | 50.5 | 41.7 | 100.3 | 81.9 |
Operating income (loss) | 9.5 | 24.3 | 31.5 | 45 |
Interest income (expense), net | (1.5) | (8.8) | (3.1) | (18.5) |
Other expense | (1) | (0.2) | (0.4) | (3.6) |
Income before income taxes | 7 | 15.3 | 28 | 22.9 |
Income tax benefit (expense) | 1.7 | (5.9) | (10.2) | (9.4) |
Income (loss) before equity in earnings of subsidiaries | 8.7 | 9.4 | 17.8 | 13.5 |
Equity in earnings of subsidiaries, net of tax | 16.8 | 8.2 | 32.8 | 18.3 |
Net income | 25.5 | 17.6 | 50.6 | 31.8 |
Comprehensive income (loss) | 7.3 | 28.3 | 44.5 | 47.2 |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net sales | 160.9 | 113.1 | 311.8 | 225.2 |
Cost of sales | 105.1 | 74.5 | 202.7 | 145.8 |
Gross Profit | 55.8 | 38.6 | 109.1 | 79.4 |
Operating expenses: | ||||
Selling, general and administrative | 31.7 | 26.1 | 62.5 | 51.8 |
Other | 0.2 | 2.1 | 0.5 | 2.7 |
Total operating expenses | 31.9 | 28.2 | 63 | 54.5 |
Operating income (loss) | 23.9 | 10.4 | 46.1 | 24.9 |
Interest income (expense), net | (0.1) | (0.4) | 0.4 | (0.7) |
Other expense | (0.2) | 0 | (0.2) | (0.1) |
Income before income taxes | 23.6 | 10 | 46.3 | 24.1 |
Income tax benefit (expense) | (6.8) | (1.8) | (13.5) | (5.8) |
Income (loss) before equity in earnings of subsidiaries | 16.8 | 8.2 | 32.8 | 18.3 |
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | 0 |
Net income | 16.8 | 8.2 | 32.8 | 18.3 |
Comprehensive income (loss) | $ (2.5) | $ 17.9 | $ 24.6 | $ 31.6 |
Supplemental Guarantor Financ69
Supplemental Guarantor Financial Information Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | $ 109.6 | $ 28 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (28.1) | (15.2) |
Payments for capitalized internal-use software | (2) | (1.9) |
Proceeds from sale of property, plant, and equipment | 26.3 | 0.3 |
Deconsolidation of OldCo | 0 | (4.8) |
Acquisitions, net of cash acquired | 0 | (39.7) |
Other | 0.3 | |
Net cash used in investing activities | (3.8) | (61.3) |
FINANCING ACTIVITIES | ||
Net payments on loans between subsidiaries | 0 | 0 |
Intercompany dividends | 0 | 0 |
Proceeds from debt | 358.6 | 351.6 |
Repayments of debt | (489.7) | (279.6) |
Repurchase of common stock | (49.5) | (9.8) |
Dividends paid | (10.3) | (9.6) |
Other | (6.6) | (3.3) |
Net cash provided by (used in) financing activities | (197.5) | 49.3 |
Effect of exchange rate changes on cash and cash equivalents | (4.2) | 4.6 |
Net increase (decrease) in cash and cash equivalents | (95.9) | 20.6 |
Cash and cash equivalents at beginning of period | 189.3 | 111.5 |
Cash and cash equivalents at end of period | 93.4 | 132.1 |
Eliminations [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | (114) | (0.1) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | 0 | 0 |
Payments for capitalized internal-use software | 0 | 0 |
Proceeds from sale of property, plant, and equipment | 0 | |
Deconsolidation of OldCo | 0 | |
Acquisitions, net of cash acquired | 0 | |
Other | 0 | |
Net cash used in investing activities | 0 | 0 |
FINANCING ACTIVITIES | ||
Net payments on loans between subsidiaries | 0 | 0 |
Intercompany dividends | 114 | 0.1 |
Proceeds from debt | 0 | 0 |
Repayments of debt | 0 | 0 |
Repurchase of common stock | 0 | 0 |
Dividends paid | 0 | 0 |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | 114 | 0.1 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 64.6 | (12) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | 0 | 0 |
Payments for capitalized internal-use software | 0 | 0 |
Proceeds from sale of property, plant, and equipment | 0 | |
Deconsolidation of OldCo | 0 | |
Acquisitions, net of cash acquired | 0 | |
Other | 0 | |
Net cash used in investing activities | 0 | 0 |
FINANCING ACTIVITIES | ||
Net payments on loans between subsidiaries | 0.6 | (116.8) |
Intercompany dividends | 0 | 0 |
Proceeds from debt | 0 | 151.5 |
Repayments of debt | 0 | 0 |
Repurchase of common stock | (49.5) | (9.8) |
Dividends paid | (10.3) | (9.6) |
Other | (5.4) | (3.3) |
Net cash provided by (used in) financing activities | (64.6) | 12 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 131.4 | 18.7 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (22.9) | (11.2) |
Payments for capitalized internal-use software | (1.8) | (1.9) |
Proceeds from sale of property, plant, and equipment | 25.9 | |
Deconsolidation of OldCo | (4.8) | |
Acquisitions, net of cash acquired | (39.7) | |
Other | 0 | |
Net cash used in investing activities | 1.2 | (57.6) |
FINANCING ACTIVITIES | ||
Net payments on loans between subsidiaries | (0.3) | 120.1 |
Intercompany dividends | 0 | 0 |
Proceeds from debt | 358.6 | 196.6 |
Repayments of debt | (489.7) | (278.6) |
Repurchase of common stock | 0 | 0 |
Dividends paid | 0 | 0 |
Other | (1.2) | 0 |
Net cash provided by (used in) financing activities | (132.6) | 38.1 |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | (0.8) |
Cash and cash equivalents at beginning of period | 0 | 0.8 |
Cash and cash equivalents at end of period | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Net cash provided by (used in) operating activities | 27.6 | 21.4 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (5.2) | (4) |
Payments for capitalized internal-use software | (0.2) | 0 |
Proceeds from sale of property, plant, and equipment | 0.4 | |
Deconsolidation of OldCo | 0 | |
Acquisitions, net of cash acquired | 0 | |
Other | 0.3 | |
Net cash used in investing activities | (5) | (3.7) |
FINANCING ACTIVITIES | ||
Net payments on loans between subsidiaries | (0.3) | (3.3) |
Intercompany dividends | (114) | (0.1) |
Proceeds from debt | 0 | 3.5 |
Repayments of debt | 0 | (1) |
Repurchase of common stock | 0 | 0 |
Dividends paid | 0 | 0 |
Other | 0 | 0 |
Net cash provided by (used in) financing activities | (114.3) | (0.9) |
Effect of exchange rate changes on cash and cash equivalents | (4.2) | 4.6 |
Net increase (decrease) in cash and cash equivalents | (95.9) | 21.4 |
Cash and cash equivalents at beginning of period | 189.3 | 110.7 |
Cash and cash equivalents at end of period | $ 93.4 | $ 132.1 |
Supplemental Guarantor Financ70
Supplemental Guarantor Financial Information Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets | ||||
Cash and cash equivalents | $ 93.4 | $ 189.3 | $ 132.1 | $ 111.5 |
Accounts receivable, net | 290.4 | 261.7 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 221.1 | 204.1 | ||
Income Taxes Receivable | 36.7 | 113.2 | ||
Prepaid expenses and other current assets | 36.8 | 51.3 | ||
Total current assets | 678.4 | 819.6 | ||
Property, plant and equipment, net | 293.5 | 296.9 | ||
Goodwill | 334.2 | 336.1 | ||
Other intangible assets, net | 311.6 | 347 | ||
Intercompany receivables | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other Assets | 101.5 | 86.5 | ||
Total assets | 1,719.2 | 1,886.1 | ||
Current liabilities | ||||
Current maturities of long-term debt | 0.2 | 0.2 | ||
Accounts payable | 134.5 | 130.7 | ||
Intercompany payables | 0 | 0 | ||
Accrued expenses | 122.1 | 137.2 | ||
Total current liabilities | 256.8 | 268.1 | ||
Long-term debt | 487.8 | 618.3 | ||
Intercompany payables | 0 | 0 | ||
Other liabilities | 109.9 | 96.9 | ||
Total liabilities | 854.5 | 983.3 | ||
Shareholder's equity | 864.7 | 902.8 | ||
Total liabilities and equity | 1,719.2 | 1,886.1 | ||
Eliminations [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | (33.1) | (30.7) | ||
Inventories | 0 | 0 | ||
Income Taxes Receivable | (8) | (22.4) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (41.1) | (53.1) | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Intercompany receivables | (23.8) | (22.9) | ||
Investment in subsidiaries | (1,670.1) | (1,721.4) | ||
Other Assets | (4) | 0 | ||
Total assets | (1,739) | (1,797.4) | ||
Current liabilities | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Intercompany payables | (33.1) | (30.7) | ||
Accrued expenses | (8) | (22.4) | ||
Total current liabilities | (41.1) | (53.1) | ||
Long-term debt | 0 | 0 | ||
Intercompany payables | (23.8) | (22.9) | ||
Other liabilities | (4) | 0 | ||
Total liabilities | (68.9) | (76) | ||
Shareholder's equity | (1,670.1) | (1,721.4) | ||
Total liabilities and equity | (1,739) | (1,797.4) | ||
Parent [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income Taxes Receivable | 43.7 | 132.3 | ||
Prepaid expenses and other current assets | 4.9 | 4.3 | ||
Total current assets | 48.6 | 136.6 | ||
Property, plant and equipment, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other intangible assets, net | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Investment in subsidiaries | 1,297.9 | 1,261.3 | ||
Other Assets | 21.4 | 12.8 | ||
Total assets | 1,367.9 | 1,410.7 | ||
Current liabilities | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 3.7 | 2.3 | ||
Intercompany payables | 0 | 0 | ||
Accrued expenses | 15.1 | 22.8 | ||
Total current liabilities | 18.8 | 25.1 | ||
Long-term debt | 444.8 | 444.2 | ||
Intercompany payables | 23.5 | 22.9 | ||
Other liabilities | 16.1 | 15.7 | ||
Total liabilities | 503.2 | 507.9 | ||
Shareholder's equity | 864.7 | 902.8 | ||
Total liabilities and equity | 1,367.9 | 1,410.7 | ||
Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0.8 |
Accounts receivable, net | 196.8 | 180.1 | ||
Intercompany receivables | 23.1 | 24 | ||
Inventories | 148.4 | 135.4 | ||
Income Taxes Receivable | 1 | 1.3 | ||
Prepaid expenses and other current assets | 20.2 | 26.5 | ||
Total current assets | 389.5 | 367.3 | ||
Property, plant and equipment, net | 206.8 | 206.8 | ||
Goodwill | 261 | 261 | ||
Other intangible assets, net | 253.2 | 284.2 | ||
Intercompany receivables | 23.2 | 22.9 | ||
Investment in subsidiaries | 372.2 | 460.1 | ||
Other Assets | 73.9 | 59.3 | ||
Total assets | 1,579.8 | 1,661.6 | ||
Current liabilities | ||||
Current maturities of long-term debt | 0.2 | 0.2 | ||
Accounts payable | 92.6 | 82.5 | ||
Intercompany payables | 10 | 6.7 | ||
Accrued expenses | 72 | 90.1 | ||
Total current liabilities | 174.8 | 179.5 | ||
Long-term debt | 43 | 174.1 | ||
Intercompany payables | 0 | 0 | ||
Other liabilities | 64.1 | 46.7 | ||
Total liabilities | 281.9 | 400.3 | ||
Shareholder's equity | 1,297.9 | 1,261.3 | ||
Total liabilities and equity | 1,579.8 | 1,661.6 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets | ||||
Cash and cash equivalents | 93.4 | 189.3 | $ 132.1 | $ 110.7 |
Accounts receivable, net | 93.6 | 81.6 | ||
Intercompany receivables | 10 | 6.7 | ||
Inventories | 72.7 | 68.7 | ||
Income Taxes Receivable | 0 | 2 | ||
Prepaid expenses and other current assets | 11.7 | 20.5 | ||
Total current assets | 281.4 | 368.8 | ||
Property, plant and equipment, net | 86.7 | 90.1 | ||
Goodwill | 73.2 | 75.1 | ||
Other intangible assets, net | 58.4 | 62.8 | ||
Intercompany receivables | 0.6 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other Assets | 10.2 | 14.4 | ||
Total assets | 510.5 | 611.2 | ||
Current liabilities | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 38.2 | 45.9 | ||
Intercompany payables | 23.1 | 24 | ||
Accrued expenses | 43 | 46.7 | ||
Total current liabilities | 104.3 | 116.6 | ||
Long-term debt | 0 | 0 | ||
Intercompany payables | 0.3 | 0 | ||
Other liabilities | 33.7 | 34.5 | ||
Total liabilities | 138.3 | 151.1 | ||
Shareholder's equity | 372.2 | 460.1 | ||
Total liabilities and equity | $ 510.5 | $ 611.2 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) - Subsequent Event [Member] - USD ($) $ in Millions | Jul. 03, 2018 | Aug. 01, 2018 |
Subsequent Event [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | $ 68 | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 70.9 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 12.8 |