Cover page
Cover page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 09, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-31225 | ||
Entity Registrant Name | ENPRO INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 01-0573945 | ||
Entity Address, Address Line One | 5605 Carnegie Boulevard | ||
Entity Address, Address Line Two | Suite 500 | ||
Entity Address, City or Town | Charlotte | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28209 | ||
City Area Code | 704 | ||
Local Phone Number | 731-1500 | ||
Title of 12(b) Security | Common stock, $0.01 par value | ||
Trading Symbol | NPO | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,297,146,319 | ||
Entity Common Stock, Shares Outstanding | 20,797,444 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2020 annual meeting of shareholders are incorporated by reference into Part III. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001164863 | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 1,205.7 | $ 1,274.1 | $ 1,101.4 |
Cost of sales | 801.9 | 855.6 | 716 |
Gross profit | 403.8 | 418.5 | 385.4 |
Operating expenses: | |||
Selling, general and administrative | 314.9 | 311.6 | 298.3 |
Other | 32.3 | 21.1 | 16.9 |
Total operating expenses | 347.2 | 332.7 | 315.2 |
Operating income | 56.6 | 85.8 | 70.2 |
Interest expense | (19.6) | (28.5) | (50.9) |
Interest income | 1.4 | 1.2 | 1.5 |
Gain on reconsolidation of GST and OldCo | 0 | 0 | 534.4 |
Other expense | (34.1) | (43.4) | (9.2) |
Income from continuing operations before income taxes | 4.3 | 15.1 | 546 |
Income tax benefit (expense) | 3.5 | (19.8) | (28.1) |
Income (loss) from continuing operations | 7.8 | (4.7) | 517.9 |
Income from discontinued operations, net of taxes | 30.5 | 24.3 | 21.9 |
Net income | $ 38.3 | $ 19.6 | $ 539.8 |
Basic earnings (loss) per share: | |||
Continuing operations (in dollars per share) | $ 0.38 | $ (0.22) | $ 24.25 |
Discontinued operations (in dollars per share) | 1.48 | 1.16 | 1.03 |
Net income (in dollars per share) | 1.86 | 0.94 | 25.28 |
Diluted earnings (loss) per share: | |||
Continuing operations (in dollars per share) | 0.38 | (0.22) | 23.76 |
Discontinued operations (in dollars per share) | 1.47 | 1.16 | 1 |
Net income per share (in dollars per share) | $ 1.85 | $ 0.94 | $ 24.76 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 38.3 | $ 19.6 | $ 539.8 |
Other comprehensive income: | |||
Foreign currency translation adjustments | 21.9 | (0.3) | 14.4 |
Pension and postretirement benefits adjustment (excluding amortization) | (6.2) | (12.7) | 5.2 |
Pension settlement loss | 0 | 12.7 | 0 |
Amortization of pension and post-retirement benefits included in net income | 7 | 5.5 | 7.7 |
Other comprehensive income, before tax | 22.7 | 5.2 | 27.3 |
Income tax expense related to items of other comprehensive income | (2.1) | (2.3) | (4.8) |
Net current-period other comprehensive income (loss) | 20.6 | 2.9 | 22.5 |
Comprehensive income | $ 58.9 | $ 22.5 | $ 562.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES OF CONTINUING OPERATIONS | |||
Net income | $ 38.3 | $ 19.6 | $ 539.8 |
Adjustments to reconcile net income to net cash provided by operating activities of continuing operations: | |||
Income from discontinued operations, net of taxes | (30.5) | (24.3) | (21.9) |
Depreciation | 30.4 | 31.6 | 27.6 |
Amortization | 37.5 | 34.5 | 31 |
Gain on reconsolidation of GST and OldCo | 0 | 0 | (534.4) |
Loss on sale of business | 11.3 | 0 | 0 |
Loss on extinguishment of debt | 0 | 18.1 | 0 |
Asset impairments | 29.4 | 14.1 | 12.1 |
Deferred income taxes | (28.3) | 1.6 | 36.4 |
Stock-based compensation | 6.8 | 6.5 | 9.5 |
Other non-cash adjustments | 2.5 | 2 | 2.9 |
Change in assets and liabilities, net of effects of acquisitions, divestitures, deconsolidation, and reconsolidation of businesses: | |||
Asbestos liabilities | 0 | (0.5) | (95.5) |
Asbestos insurance receivables | 5.8 | 29.9 | 26.6 |
Accounts receivable, net | 9.9 | (1.1) | (3.2) |
Inventories | 7 | (23) | (3.7) |
Accounts payable | (15.9) | (4.9) | 17.4 |
Income taxes, net | 22 | 95.3 | (19.7) |
Other current assets and liabilities | 4.4 | 5.8 | 12.4 |
Other non-current assets and liabilities | 0.2 | 7.6 | (2.1) |
Net cash provided by operating activities of continuing operations | 130.8 | 212.8 | 35.2 |
INVESTING ACTIVITIES OF CONTINUING OPERATIONS | |||
Purchases of property, plant and equipment | (21.6) | (36.1) | (30.3) |
Proceeds from sale of business | 3.6 | 0 | 0 |
Payments for acquisitions, net of cash acquired | (310.5) | 0 | (44.6) |
Reconsolidation of GST and OldCo | 0 | 0 | 38.5 |
Deconsolidation of OldCo | 0 | 0 | (4.8) |
Capital contribution to OldCo | 0 | 0 | (45.2) |
Receipts from settlements of derivative contracts | 0 | 9.3 | 0 |
Proceeds from sale of property, plant and equipment | 0.8 | 30.7 | 0.5 |
Other | (3.4) | (2.8) | (3.6) |
Net cash provided by (used in) investing activities of continuing operations | (331.1) | 1.1 | (89.5) |
FINANCING ACTIVITIES OF CONTINUING OPERATIONS | |||
Proceeds from debt | 652.7 | 1,014.7 | 635.7 |
Repayments of debt, including premiums to par value | (487.9) | (1,184.9) | (484.3) |
Repurchase of common stock | (15) | (50) | (11.5) |
Dividends paid | (20.9) | (20.3) | (19) |
Other | (5.1) | (11.9) | (2.4) |
Net cash provided by (used in) financing activities of continuing operations | 123.8 | (252.4) | 118.5 |
CASH FLOWS OF DISCONTINUED OPERATIONS | |||
Operating cash flows | 76.8 | 13.6 | 11.4 |
Investing cash flows | (11.8) | (27.1) | (8.2) |
Net cash provided by (used in) discontinued operations | 65 | (13.5) | 3.2 |
Effect of exchange rate changes on cash and cash equivalents | 3.1 | (7.7) | 10.4 |
Net increase (decrease) in cash and cash equivalents | (8.4) | (59.7) | 77.8 |
Cash and cash equivalents at beginning of year | 129.6 | 189.3 | 111.5 |
Cash and cash equivalents at end of year | 121.2 | 129.6 | 189.3 |
Cash paid during the year for: | |||
Interest | 19.2 | 33.3 | 46.4 |
Income taxes | 8.8 | (77.9) | 6.2 |
Non-cash investing and financing activities | |||
Non-cash acquisitions of property, plant and equipment | $ 2.5 | $ 2.3 | $ 3.2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 121.2 | $ 129.6 |
Accounts receivable, less allowance for doubtful accounts of $3.7 in 2019 and of $3.3 in 2018 | 160.8 | 163.7 |
Inventories | 157.1 | 174.2 |
Income tax receivable | 28.7 | 49.6 |
Prepaid expenses and other current assets | 27.6 | 28.8 |
Current assets held for sale | 254.1 | 186.2 |
Total current assets | 749.5 | 732.1 |
Property, plant and equipment, net | 218.8 | 234.3 |
Goodwill | 485.3 | 322.1 |
Other intangible assets, net | 466.9 | 297.3 |
Other assets | 114.6 | 50.1 |
Non-current assets held for sale | 0 | 79.9 |
Total assets | 2,035.1 | 1,715.8 |
Current liabilities | ||
Current maturities of long-term debt | 4.1 | 2.4 |
Accounts payable | 82.7 | 96.4 |
Accrued expenses | 137.3 | 132 |
Current liabilities held for sale | 89.5 | 61.2 |
Total current liabilities | 313.6 | 292 |
Long-term debt | 625.2 | 462.5 |
Deferred taxes and non-current income taxes payable | 74.6 | 37.6 |
Other liabilities | 106.8 | 60.2 |
Non-current liabilities held for sale | 0 | 5.8 |
Total liabilities | 1,120.2 | 858.1 |
Commitments and contingent liabilities | ||
Redeemable non-controlling interest | 28 | 0 |
Shareholders’ equity | ||
Common stock – $.01 par value; 100,000,000 shares authorized; issued 20,785,346 shares at December 31, 2019 and 20,929,218 shares at December 31, 2018 | 0.2 | 0.2 |
Additional paid-in capital | 292.1 | 301 |
Retained earnings | 632.2 | 603.3 |
Accumulated other comprehensive loss | (36.4) | (45.5) |
Common stock held in treasury, at cost – 186,516 shares at December 31, 2019 and 189,514 shares at December 31, 2018 | (1.2) | (1.3) |
Total shareholders’ equity | 886.9 | 857.7 |
Total liabilities and equity | $ 2,035.1 | $ 1,715.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts and notes receivable, allowance for doubtful accounts | $ 3.7 | $ 3.3 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, number of shares authorized | 100,000,000 | 100,000,000 |
Common stock, number of shares, issued | 20,785,346 | 20,929,218 |
Treasury stock,number of shares | 186,516 | 189,514 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Redeemable non-controlling interest |
Beginning balance at Dec. 31, 2016 | $ 358.5 | $ 0.2 | $ 346.5 | $ 84 | $ (70.9) | $ (1.3) | |
Balance (in shares) at Dec. 31, 2016 | 21.4 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of new accounting standard | 0.2 | 0.5 | (0.3) | ||||
Net income | 539.8 | 539.8 | |||||
Other comprehensive income | 22.5 | 22.5 | |||||
Dividends | $ (19.1) | (19.1) | |||||
Shares repurchases (in shares) | (0.2) | (0.2) | |||||
Share repurchases | $ (11.5) | (11.5) | |||||
Incentive plan activity (in shares) | 0.1 | ||||||
Incentive plan activity | 10.4 | 10.4 | |||||
Other | 2 | 2 | |||||
Balance (in shares) at Dec. 31, 2017 | 21.3 | ||||||
Ending balance at Dec. 31, 2017 | 902.8 | $ 0.2 | 347.9 | 604.4 | (48.4) | (1.3) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of new accounting standard | (0.3) | (0.3) | |||||
Net income | 19.6 | 19.6 | |||||
Other comprehensive income | 2.9 | 2.9 | |||||
Dividends | $ (20.4) | (20.4) | |||||
Shares repurchases (in shares) | (0.7) | (0.7) | |||||
Share repurchases | $ (50) | (50) | |||||
Incentive plan activity (in shares) | 0.1 | ||||||
Incentive plan activity | 3.1 | 3.1 | |||||
Balance (in shares) at Dec. 31, 2018 | 20.7 | ||||||
Ending balance at Dec. 31, 2018 | 857.7 | $ 0.2 | 301 | 603.3 | (45.5) | (1.3) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Adoption of new accounting standard | 11.5 | (11.5) | |||||
Net income | 38.3 | 38.3 | |||||
Other comprehensive income | 20.6 | 20.6 | |||||
Dividends | $ (20.9) | (20.9) | |||||
Shares repurchases (in shares) | (0.2) | (0.2) | |||||
Share repurchases | $ (15) | (15) | |||||
Incentive plan activity (in shares) | 0.1 | ||||||
Incentive plan activity | 6.2 | 6.1 | 0.1 | ||||
LeanTeq Acquisition | $ 28 | ||||||
Balance (in shares) at Dec. 31, 2019 | 20.6 | ||||||
Ending balance at Dec. 31, 2019 | $ 886.9 | $ 0.2 | $ 292.1 | $ 632.2 | $ (36.4) | $ (1.2) | $ 28 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per share (in dollars per share) | $ 1 | $ 0.96 | $ 0.88 |
Overview, Basis of Presentation
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance | 1. Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance Overview EnPro Industries, Inc. (“we,” “us,” “our,” “EnPro” or the “Company”) is a leader in the design, development, manufacture and marketing of proprietary engineered industrial products that primarily include: sealing products; heavy-duty truck wheel-end component systems; self-lubricating, non-rolling bearing products; and precision engineered components and lubrication systems for reciprocating compressors. The term "Coltec" refers to our subsidiary Coltec Industries Inc prior to its merger with and into our OldCo, LLC subsidiary on December 31, 2016 and to its assigns and successor after such date. Basis of Presentation The Consolidated Financial Statements reflect the accounts of the Company and our majority-owned and controlled subsidiaries. All intercompany accounts and transactions between our consolidated operations have been eliminated. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts of assets and liabilities and the disclosures regarding contingent assets and liabilities at period end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 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”). 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 to resolve current and future asbestos claims which contemplated the joint plan of reorganization (the "Joint Plan") which was filed with the Bankruptcy Court. This settlement contemplated that Coltec would, subject to the receipt of necessary consents, undergo a corporate 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 subsidiary of EnPro, which 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”), an indirect subsidiary of EnPro. As further contemplated by the settlement, on January 30, 2017 (the "OldCo Petition Date"), OldCo 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. The Joint Plan was consummated on July 31, 2017. For more detail on the terms of the Joint Plan, see Note 20 , "Subsidiary Asbestos Bankruptcies." During the pendency of the GST Chapter 11 Case and the related OldCo Chapter 11 Case, which are described further in Note 20 , "Subsidiary Asbestos Bankruptcies," 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. GST and OldCo were reconsolidated upon the effective date of the consummation of the Joint Plan, which effective date was 12:01 a.m. on July 31, 2017. Accordingly, the results of operations and cash flows from GST are included in the Consolidated Statement of Operations and Consolidated Statement of Cash Flows for the year ended December 31, 2017 only from and after July 31, 2017. The results of operations and cash flows from OldCo are included in the Consolidated Statement of Operations and Consolidated Statement of Cash Flows for the year ended December 31, 2017 only for the periods prior to the OldCo Petition Date and from and after July 31, 2017. In the first quarter of 2019, we adopted a standard that establishes principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. The standard requires 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 Consolidated Statements of Operations and the Consolidated 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. We adopted the new standard using the allowable option to apply the transition provisions of the new guidance at its adoption date without adjusting the comparative periods presented. We evaluated the impact of applying practical expedients, and upon adoption we elected the package of practical expedients which permits us to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs. Additionally, we elected to not separate lease and non-lease components, we will not recognize an asset for leases with a term of twelve months or less, and we will apply a portfolio approach in determining discount rates. Upon adoption of this standard, we recognized a right-of-use asset and a corresponding lease liability of approximately $27 million for our operating leases from continuing operations. The adoption of the standard did not have a material impact to our Consolidated Statements of Operations or Consolidated Statements of Cash Flows. Additionally, in the first quarter of 2019, we adopted a standard that allows for the reclassification of disproportionate income tax effects ("stranded tax effects") resulting from the Tax Cuts and Jobs Act (the "Tax Act") from accumulated other comprehensive loss to retained earnings. As a result of the Tax Act, we remeasured our deferred taxes related to pensions and other postretirement benefits using the new U.S. federal tax rate. Our adoption of the standard resulted in the reclassification of a net tax benefit of $11.5 million from accumulated other comprehensive loss to opening retained earnings in our Consolidated Balance Sheet. Adoption of the standard had no impact to our Consolidated Statements of Operations or Consolidated Statements of Cash Flows. Summary of Significant Accounting Policies Revenue Recognition – The largest stream of revenue is product revenue for shipments of the various products discussed further in Note 19 , "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. At December 31, 2019 , we had a backlog of orders of continuing operations valued at $190.7 million compared with $216.9 million at December 31, 2018 . Approximately 5% of the backlog is expected to be filled beyond 2020 . Backlog represents orders on hand we believe to be firm. However, there is no certainty the backlog orders will result in actual sales at the times or in the amounts ordered. In addition, for most of our business, backlog is not particularly predictive of future performance because of our short lead times and some seasonality. Redeemable Non-Controlling Interests – Non-controlling interests in subsidiaries that are redeemable for cash or other assets outside of the our control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases or decreases in the estimated redemption amount are recorded with corresponding adjustments against equity and are reflected in the computation of earnings per share. Foreign Currency Translation – The financial statements of those operations whose functional currency is a foreign currency are translated into U.S. dollars using the current rate method. Under this method, all assets and liabilities are translated into U.S. dollars using current exchange rates, and income statement activities are translated using average exchange rates. The foreign currency translation adjustment is included in accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses on foreign currency transactions are included in operating income. Foreign currency transaction losses/(gains) totaled $3.0 million , $0.6 million , and $(1.0) million respectively, in 2019 and 2018 , and 2017 . Research and Development Expense – Costs related to research and development activities are expensed as incurred. We perform research and development primarily under Company-funded programs for commercial products. Research and development expenditures in 2019 , 2018 , and 2017 were $20.6 million , $22.9 million , and $24.5 million , respectively, and are included in selling, general and administrative expenses in the Consolidated Statements of Operations. Income Taxes – We use the asset and liability method of accounting for income taxes. Temporary differences arising between the tax basis of an asset or liability and its carrying amount on the Consolidated Balance Sheet are used to calculate future income tax assets or liabilities. This method also requires the recognition of deferred tax benefits, such as net operating loss carryforwards. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income (losses) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment of the change. A tax benefit from an uncertain tax position is recognized only if we believe it is more likely than not that the position will be sustained on its technical merits. If the recognition threshold for the tax position is met, only the portion of the tax benefit that we believe is greater than 50 percent likely to be realized is recorded. On December 22, 2017, the Tax Act was enacted and contains several key tax provisions that impacted us, including the reduction of the corporate 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. We recognized the provisional impact of these tax law changes, including the remeasurement of our deferred tax assets and liabilities based on the tax rates in effect at the time the deferred balances are expected to reverse, the reassessment of the net realizability of the deferred tax balances, and the transition tax, in our income tax provision in the fourth quarter 2017, the period of enactment. While the Tax Act provides for a territorial tax system, it includes the global intangible low-taxed income (“GILTI”) provision beginning in 2018. The GILTI provisions require us to include in our U.S. income tax return certain current foreign subsidiary earnings net of foreign tax credits, subject to limitation. We elected to account for the GILTI tax in the period in which it is incurred. In December 2017, 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 it was enacted. In these instances, the SEC's guidance allowed the recording of provisional amounts during a measurement period not to extend beyond one year of the enactment date. As the Tax Act was enacted at the end of 2017, and ongoing guidance and interpretation has been issued over the ensuing twelve months, we considered the impact of the transition tax, remeasurement of deferred tax assets and liabilities, and other items recorded in our year-end income tax provision for the fourth quarter 2017 to be a provisional estimate and have further analyzed the year-end data and refined our calculations. The refinements to our provisional estimate were made in the third and fourth quarters of 2018 and we completed our accounting for the impact in the fourth quarter of 2018. Please see Note 5 , "Income Taxes," for further information. Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, demand deposits and highly liquid investments with a maturity of three months or less at the time of purchase. Receivables – Accounts receivable are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. We establish an allowance for doubtful accounts receivable based on historical experience and any specific customer collection issues we have identified. Doubtful accounts receivable are written off when a settlement is reached for an amount less than the outstanding historical balance or when we have determined the balance will not be collected. Inventories – Certain domestic inventories are valued by the last-in, first-out (“LIFO”) cost method. Inventories not valued by the LIFO method are valued using the first-in, first-out (“FIFO”) cost method, and are recorded at the lower of cost or net realizable value. Approximately 19% and 16% of inventories were valued by the LIFO method in 2019 and 2018 , respectively. Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation of plant and equipment is determined on the straight-line method over the following estimated useful lives of the assets: buildings and improvements, 5 to 25 years; machinery and equipment, 3 to 10 years. Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets of acquired businesses. Goodwill is not amortized, but instead is subject to annual impairment testing conducted each year as of October 1. The goodwill asset impairment test involves comparing the fair value of a reporting unit to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, a second step of comparing the implied fair value of the reporting unit’s goodwill to the carrying amount of that goodwill is required to measure the potential goodwill impairment loss. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We completed our required annual impairment tests of goodwill as of October 1, 2019 , 2018 and 2017 . These assessments did not indicate any impairment of the goodwill, and the fair values of each of our reporting units significantly exceeded their carrying values. Other intangible assets are recorded at cost, or when acquired as a part of a business combination, at estimated fair value. These assets include customer relationships, patents and other technology agreements, trademarks, licenses and non-compete agreements. Intangible assets that have definite lives are amortized using a method that reflects the pattern in which the economic benefits of the assets are consumed or the straight-line method over estimated useful lives of 2 to 21 years. Intangible assets with indefinite lives are subject to at least annual impairment testing, conducted each year as of October 1, which compares the fair value of the intangible asset with its carrying amount using the relief from royalty method. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value below the carrying value or change the useful life of the asset. Based upon our analysis, we determined our indefinite-lived Motorwheel trade name was impaired at December 31, 2019. We recorded a $7.9 million impairment charge and recorded the trade name at $2.1 million on our Consolidated Balance Sheet at December 31, 2019, which represents the fair-value of the asset. Debt – Debt issuance costs associated with our senior secured revolving credit facility are presented as an asset and subsequently amortized into interest expense ratably over the term of the revolving debt arrangement. Debt issuance costs associated with any of our other debt instruments that are incremental third party costs of issuing the debt are recognized as a reduction in the carrying value of the debt and amortized into interest expense over the time period to maturity using the interest method. Derivative Instruments – We use derivative financial instruments to manage our exposure to various risks. The use of these financial instruments modifies the exposure with the intent of reducing our risk. We do not use financial instruments for trading purposes, nor do we use leveraged financial instruments. The counterparties to these contractual arrangements are major financial institutions. We use multiple financial institutions for derivative contracts to minimize the concentration of credit risk. The current accounting rules require derivative instruments, excluding certain contracts that are issued and held by a reporting entity that are both indexed to its own stock and classified in shareholders’ equity, be reported in the Consolidated Balance Sheets at fair value and that changes in a derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Fair Value Measurements – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect our own assumptions. The fair value of intangible assets associated with acquisitions is determined using a discounted cash flow analysis. Projecting discounted future cash flows requires us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital, tax rates, attrition rates, and the appropriate discount rate. This non-recurring fair value measurement would be classified as Level 3 due to the absence of quoted market prices or observable inputs for assets of a similar nature. We review the carrying amounts of long-lived assets when certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of the asset group is not recoverable and exceeds its fair value. We estimate the fair values of assets subject to long-lived asset impairment based on our own judgments about the assumptions that market participants would use in pricing the assets. In doing so, we use an market approach when available or income approach based upon discounted cash flows. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, projected growth rates, discount rates, and royalty rates for certain intangible assets. We classify these fair value measurements as Level 3. Similarly, the fair value computations for the recurring impairment analyses of goodwill and indefinite-lived intangible assets would be classified as Level 3 due to the absence of quoted market prices or observable inputs. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, projected growth rates, discount rates, and royalty rates for certain indefinite-lived intangible assets. Significant changes in any of those inputs could result in a significantly different fair value measurement. Pensions and Postretirement Benefits - Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions is included as a component of benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. We amortize prior service cost using the straight-line basis over the average future service life of active participants. For segment reporting purposes, we allocate service cost to each location generating those costs. All other components of net periodic pension cost are reported in other (non-operating) expense. Recently Issued Accounting Guidance In December 2019, a standard was issued that will simplify the accounting for income taxes in nine unrelated areas. The standard is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We are currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. 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. 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. Based upon our current population of receivables at December 31, 2019 and our 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. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 2. Discontinued Operations During the fourth quarter of 2019, we entered into an agreement to sell the Fairbanks Morse division, which comprised the entire Power Systems segment. The sale of the Fairbanks Morse division was completed on January 21, 2020. Accordingly, we have reported, for all periods presented, the financial condition, results of operations, and cash flows of Fairbanks Morse as discontinued operations in the accompanying financial statements. For 2019, 2018, and 2017, results of operations from Fairbanks Morse were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Net sales $ 284.2 $ 257.9 $ 208.2 Cost of sales 216.9 197.4 149.3 Gross profit 67.3 60.5 58.9 Operating expenses: Selling, general, and administrative expenses 28.2 28.8 27.4 Other 0.8 0.2 — Total operating expenses 29.0 29.0 27.4 Income from discontinued operations before income taxes 38.3 31.5 31.5 Income tax expense (7.8 ) (7.2 ) (9.6 ) Income from discontinued operations, net of taxes $ 30.5 $ 24.3 $ 21.9 The major classes of assets and liabilities for Fairbanks Morse are shown below: As of December 31, 2019 2018 (in millions) Assets: Accounts receivable $ 107.8 $ 122.9 Inventories 60.2 58.9 Prepaid expenses and other current assets 6.6 4.4 Total current assets of discontinued operations 174.6 186.2 Property, plant, and equipment 63.0 66.9 Goodwill 11.8 11.6 Other assets 4.7 1.4 Total assets of discontinued operations $ 254.1 $ 266.1 Liabilities: Accounts payable $ 36.9 $ 42.9 Accrued expenses 48.2 18.3 Total current liabilities of discontinued operations 85.1 61.2 Other liabilities 4.4 5.8 Total liabilities of discontinued operations $ 89.5 $ 67.0 Pursuant to applicable accounting guidance for the reporting of discontinued operations, allocations to Fairbanks Morse for corporate services have not been reflected in the above financial statements of discontinued operations and were included as part of our income from continuing operations in the accompanying consolidated financial statements of the company for all periods as they are expected to be in the future. As a result, income before income taxes of Fairbanks Morse has been increased by $2.4 million , $2.2 million , and $2.1 million in 2019, 2018, and 2017, respectively, with offsetting increase in corporate expenses. The sale of Fairbanks Morse closed on January 21, 2020 to an affiliate of funds managed by private equity firm Arcline Investment Management for a sales price of $450.0 million , subject to closing date purchase price adjustments. The pre-tax gain on the disposition of Fairbanks Morse is expected to be approximately $280 million |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and Divestitures [Abstract] | |
Acquisitions and Dispositions | 3. Acquisitions and Dispositions Acquisitions On September 25, 2019, we acquired all of the equity securities of LeanTeq Co., Ltd. and its affiliate LeanTeq LLC (collectively referred to as “LeanTeq”). LeanTeq primarily provides refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment. This equipment is used to produce the latest and most technologically advanced microchips for smartphones, autonomous vehicles, high-speed wireless connectivity, artificial intelligence, and other leading-edge applications. Founded in 2011 and headquartered in Taoyuan City, Taiwan, LeanTeq has two locations in Taiwan and one in the United States (Silicon Valley). LeanTeq is included as part of our Technetics Group within the Sealing Products segment. The acquisition was paid for with $271.2 million in cash, net of cash acquired, plus rollover equity from two of LeanTeq sellers (the “Sellers”) who were executives of the acquired entity. This rollover equity gives the Sellers approximately a 10% ownership share (the "Rollover Equity") of Lunar Investment LLC (“Lunar”), EnPro’s subsidiary that purchased LeanTeq. Additionally, there were $6.4 million of acquisition-related costs recorded during the year ended December 31, 2019, which were expensed during the period and included in selling, general and administrative expense in the accompanying Consolidated Statements of Operations. On July 2, 2019, we acquired 100% of the stock of The Aseptic Group (comprising Aseptic Process Equipment SAS and Aseptic Services SARL, collectively referred to as “Aseptic”), a privately-held company which distributes, designs and manufactures aseptic fluid transfer products for the pharmaceutical and biopharmaceutical industries. Aseptic, headquartered in Limonest, France, is included as part of our Garlock group of companies within the Sealing Products segment. The business was acquired for $39.3 million , net of cash acquired. The purchase prices of the businesses acquired during 2019 were allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the purchase prices over the identifiable assets acquired less the liabilities assumed was reflected as goodwill which is attributable primarily to the value of the workforces and ongoing operation of the businesses. Goodwill recorded as part of the purchase price allocations was $159.0 million , of which $2.7 million is expected to be tax deductible over a period of 15 years. Identifiable intangible assets acquired as part of the acquisitions were $214.2 million , including $1.1 million of indefinite-lived trade names and $213.1 million of definite-lived intangible assets, including customer relationships, proprietary technology, trade names, favorable leasehold interests and non-competition agreements, with a weighted average amortization period of approximately 16 years. The fair value of the Rollover Equity was estimated as of closing to be $28.0 million . As part of the LeanTeq acquisition, EnPro has the right to buy (the “Call Option”), and the non-controlling interest holders have the right to sell (the “Put Option”) the Rollover Equity as follows: EnPro shall have the right to buy, and the non-controlling interest holders have the right to sell, the Rollover Equity within 90 days following the third anniversary of the closing and payable in two installments as follows (the "Put/Call Price"): • Half of the price payable for the Rollover Equity will be equal to a pro rata portion of a multiple of EBITDA (as defined) generated by LeanTeq during the last 12 months (“LTM”) ending on the closest month end prior to the last month end before the purchase or sale (the "First Measurement Date") less LeanTeq's net debt in excess of cash as of the First Measurement Date (the "First Exercise Price"). The applicable multiple depends on the future LTM EBITDA margin and revenue growth; • The remaining half of the price payable for the Rollover Equity will be equal to an amount that is the higher of the First Exercise Price and a pro rata portion of a multiple of EBITDA generated by LeanTeq during the last 12 months (“LTM”) prior to the first anniversary of the First Measurement Date (the "Second Measurement Date") less LeanTeq’s net debt in excess of cash as of the Second Measurement Date. The applicable multiple depends on the future LTM EBITDA margin and revenue growth. To estimate the fair value of the Put and Call Option, we used a Monte Carlo simulation in an option pricing framework (a special case of the Income Approach). In particular, we simulated the future equity value, revenue, and EBITDA of LeanTeq assuming a correlated Geometric Brownian Motion. For each simulation path, the Put and Call Option payoffs are calculated based on the contractual terms, and then discounted at the term-matched risk-free rate plus, in the case of the Put Option, allowance for counterparty credit risk. Finally, the value of the Put and Call Option is calculated as the average present value over all simulated paths. The model uses our revenue and EBITDA forecasts adjusted for risk to simulate future revenue and EBITDA in a risk-neutral framework. Due to the presence of the put arrangement, the Rollover Equity is presented as redeemable non-controlling interest since redemption is not solely within our control. We initially recognized the Rollover Equity at fair value, inclusive of the put-call provisions. We will adjust the redeemable non-controlling interest when the redemption value exceeds the carrying value with changes recognized as an adjustment to equity. In addition, the Put Option or Call Option may be exercised in the event of certain employment terminations or other events. The Put/Call Price will be reduced 20 percent for certain types of employment terminations. As a result of this option related to employment termination, a portion of the non-controlling interest will be classified as compensation expense for financial reporting purposes. We calculated the value of this compensation (the “Compensation Amount”) using a with-and-without method. In particular, we calculated the value of the Compensation Amount as the difference between the value of the net Put and Call Options with and without the 20 percent discount applied to the First and Second Exercise Prices. Based on this approach we calculated the Compensation Amount to be $6.4 million , as of the valuation date. This amount will be recognized as compensation expense over the term of the Options and is subject to change based on the ultimate redemption value of the Rollover Equity. We continue to evaluate the purchase price allocations of these acquisitions, primarily the value of certain intangible assets, and it may be revised in future periods as these estimates are finalized. The following table represents the preliminary purchase price allocations: (in millions) Accounts receivable $ 7.5 Property, plant and equipment 7.5 Goodwill 159.0 Other intangible assets 214.2 Other assets 17.4 Deferred income taxes (50.1 ) Liabilities assumed (17.0 ) Redeemable non-controlling interest (28.0 ) $ 310.5 Other assets include $6.1 million of indemnification assets which represent the sellers' obligation under the purchase agreements to indemnify us for a portion of their potential contingent liabilities related to certain tax matters. This amount is currently fully included in escrow accounts related to the purchase transactions. If a claim is made timely, the amount of the claim will remain in escrow until the lapse in the statute of limitations or other settlement of the related tax issues based upon an actual assessment from a tax authority. We also recognized contingent liabilities related to these matters of $8.9 million as of the acquisition dates which are included in the liabilities assumed amount. Sales of $14.4 million and pre-tax income of $1.5 million for LeanTeq and Aseptic are included in our Consolidated Statements of Operations for the year December 31, 2019. The following unaudited pro forma condensed consolidated financial results of operations for the years ended December 31, 2019, 2018, and 2017 are presented as if these two acquisitions had been completed on January 1, 2017: Years Ended December 31, 2019 2018 2017 (in millions) Pro forma net sales $ 1,234.7 $ 1,312.7 $ 1,131.2 Pro forma net income (loss) from continuing operations 9.4 (11.5 ) 499.5 These amounts have been calculated after applying our accounting policies and adjusting the results of LeanTeq and Aseptic to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied as of January 1, 2017 as well as additional interest expense to reflect financing required, together with the consequential tax effects. The supplemental pro forma net income for the year ended December 31, 2019 was adjusted to exclude $7.0 million of pre-tax acquisition-related costs. The supplemental pro forma net income for the year ended December 31, 2017 was adjusted to include $7.0 million of these charges. These pro forma financial results have been prepared for comparative purposes only and do not reflect the effect of synergies that would have been expected to result from the integration of these acquisitions. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the acquisitions occurred on January 1, 2017, or of future results of the consolidated entities. In October 2017, we acquired 100% of the stock of Commercial Vehicle Components Co., Ltd. ("CVC"), a manufacturer of air disc brake and medium duty hydraulic disc brake pads for the heavy-duty and medium-duty commercial vehicle aftermarket. CVC is managed as part of our Stemco division within the Sealing Products segment. In June 2017, we acquired certain assets and assumed certain liabilities of Qualiseal Technology (“Qualiseal”), a privately-held company offering custom-engineered mechanical face and circumferential seals for demanding aerospace and industrial applications. Qualiseal is managed as part of our Technetics division within the Sealing Products segment. We paid $44.6 million , net of cash acquired, in 2017 for the two businesses acquired during that year. Because the assets, liabilities and results of operations for the acquisitions completed in 2017 are not significant to our consolidated financial position or results of operations, pro forma financial information and additional disclosures for 2017 acquisitions are not presented. Dispositions In 2019 we recorded a $16.3 million pre-tax loss related to the sale of certain assets and certain liabilities of our brake products business unit located in Rome, Georgia and included in our Sealing Product segment. The loss is composed of the loss on the sale of the business, which closed on September 25, 2019, and the loss on the sale of the facility, which is scheduled to close in the first quarter of 2020. As a result of the agreement to sell the related building, we recorded a $0.6 million loss in other expense on our Consolidated Statement of Operations for the year ended December 31, 2019. Upon entering the agreement, we ceased depreciation and adjusted the net book value of the building to the contracted sales price and reclassified to other current assets on our Consolidated Balance Sheet as of December 31, 2019. The sale of the business resulted in a $15.7 million loss that is included in other expense on our Consolidated Statements of Operations for the year ended December 31, 2019. The loss is composed of an $11.3 million non-cash loss on the sale of the business and a $4.4 million loss related to contract cancellation costs, severance, and other expenses. The aggregate sales price for the brake products business is $7.0 million , of which we received $3.6 million in September 2019 at the closing of the sale of the business and received $0.1 million in the fourth quarter of 2019 that will be applied to the sale of the building, which closed in February 2020. On the closing of the sale of the building, we received $2.9 million . We are scheduled to receive the balance of $0.4 million later in 2020. The aggregate sales price is subject to adjustment based on final inventory balances. The assets, liabilities, and results of operations for the brake products business unit are not significant to our consolidated financial position or result of operations. See Note 2 |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Other Expense | 4. Other Expense Operating We incurred $35.1 million , $22.2 million and $5.1 million of restructuring and impairment costs during the years ended December 31, 2019 , 2018 and 2017 , respectively. Based upon an analysis of the Motorwheel product line in the Stemco division of our Sealing Products segment, we determined that the long-lived assets of the Motorwheel product line were not recoverable as of December 31, 2019. As a result, we recorded an impairment of $21.0 million , of which $9.2 million related to the impairment of certain finite-lived intangible assets, $7.9 million related to the indefinite lived Motorwheel tradename, and $3.9 million related to the impairment of property, plant, and equipment. Additionally, in the fourth quarter of 2019, we recorded restructuring charges related to our decision to shut down and exit production of our ATDynamics, Aeris and BatRF product lines in the Stemco division of our Sealing products segment. As a result, we recorded a $3.1 million inventory impairment, $3.1 million impairment of property, plant, and equipment and intangible assets related to these products, and $1.0 million in severance and other costs. Additionally, in the fourth quarter of 2019, we evaluated certain long-lived assets in our Commercial Vehicle Components businesses in the Stemco division of our Sealing Products segment and determined these assets were not recoverable. As a result, we recorded a $1.6 million impairment loss related to intangible assets associated with the business. Restructuring actions in 2019 are reflected in other (operating) expense in our Consolidated Statement of Operations other than the inventory related charges of $3.1 million , which are reflected in cost of sales. Including smaller targeted restructuring actions, total restructuring costs and impairment charges for our Stemco division were $30.8 million for the year ended December 31, 2019. Workforce reductions in 2019 associated with our exit from the ATDynamics, Aeris, and BatRF product lines as well as other smaller targeted restructuring actions totaled 121 administrative and manufacturing positions. In the fourth quarter of 2018, we implemented a restructuring plan under which our Stemco heavy-duty truck business in the Sealing Products segment discontinued the manufacturing of brake drum friction. The restructuring plan involved the shut down of production lines that occupied a portion of Stemco’s owned manufacturing facility in Rome, Georgia. We recorded total restructuring expenses related to the exit of approximately $15.4 million in the fourth quarter of 2018, composed primarily of non-cash charges due to the impairment of inventory, equipment and other tangible assets. The net restructuring costs recorded in 2018 are reflected in our other (operating) expense in our Consolidated Statement of Operations other than inventory related charges of $1.1 million , which are reflected in costs of sales. In the second quarter of 2018, we commenced 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 . We incurred severance expenses of $3.8 million , net tangible asset write downs of $1.8 million , the write-off of customer relationship intangible assets associated with the business of $19.1 million , and other costs related to the restructuring of $0.5 million . These transactions resulted in total net restructuring costs related to the exit of $3.5 million . These net costs are reflected within other (operating) expense in our Consolidated Statement of Operations other than inventory-related costs of $2.0 million , which were reflected in costs of sales. Workforce reductions in 2018 associated with our exit from the industrial gas turbine business and other smaller targeted restructuring actions totaled 98 administrative and manufacturing positions. During 2017, we conducted a number of targeted restructuring activities throughout our operations, which included the exit of some smaller locations and targeted workforce reductions. All costs associated with such initiatives were incurred in 2017. Workforce reductions in 2017 associated with our restructuring actions totaled 117 administrative and manufacturing positions. Restructuring reserves at December 31, 2019 , as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ — $ 5.1 $ (3.7 ) $ 1.4 Facility relocation and closure costs 1.0 1.2 (2.2 ) — $ 1.0 $ 6.3 $ (5.9 ) $ 1.4 Also included in restructuring costs for 2019 were asset write-downs, net of gains, of approximately $28.8 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2018 , as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ 0.7 $ 6.7 $ (7.4 ) $ — Facility relocation and closure costs 1.2 1.3 (1.5 ) 1.0 $ 1.9 $ 8.0 $ (8.9 ) $ 1.0 Also included in restructuring costs for 2018 were asset write-downs of approximately $14.2 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2017 , as well as activity during the year, consisted of: Balance, December 31, 2016 Provision Payments Balance (in millions) Personnel-related costs $ 3.5 $ 2.5 $ (5.3 ) $ 0.7 Facility relocation and closure costs 1.6 0.6 (1.0 ) 1.2 $ 5.1 $ 3.1 $ (6.3 ) $ 1.9 Also included in restructuring costs for 2017 were asset write-downs of approximately $2.0 million that did not affect the restructuring reserve liability. Restructuring costs by reportable segment are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Sealing Products $ 32.3 $ 21.4 $ 3.6 Engineered Products 2.1 0.7 1.5 Corporate 0.7 0.1 — $ 35.1 $ 22.2 $ 5.1 In consideration of the poor financial performance of the ATDynamics business for the quarter ended September 30, 2017 and significantly lowered expectations for the fourth quarter forecast and the budget for fiscal year 2018, we performed a recoverability test, determining that the full value of certain definite-lived intangible assets was not recoverable. This assessment resulted in an impairment loss of $10.1 million in 2017. Additionally, during the year ended December 31, 2017, we determined that approximately $1.8 million of amortized customer relationship intangibles associated with certain smaller locations that we exited in 2017 would no longer provide continuing value to us as a result of the exits. Therefore, these assets were written off. Also included in other operating expense for the years ended December 31, 2019 , 2018 and 2017 was $0.2 million , $2.0 million and $1.7 million , respectively, primarily consisting of legal and other fees related to the bankruptcy of certain subsidiaries discussed further in Note 20, "Subsidiary Asbestos Bankruptcies". Non-Operating During 2019 , 2018 and 2017 , we recorded expense of $14.5 million , $13.4 million and $8.7 million , respectively, due to environmental reserve increases based on additional information at several specific sites and other ongoing obligations of previously owned businesses. Refer to Note 21 , "Commitments and Contingencies - Environmental," for additional information about our environmental liabilities. We report the service cost component of pension and other postretirement benefits expense in operating income 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 presented in other (non-operating) expense. For the years ended December 31, 2019 , 2018 and 2017 , we reported approximately $3.3 million , $12.0 million and $0.5 million , respectively, in other (non-operating) expense on the Consolidated Statements of Operations related to the components of net benefit cost other than service cost. Refer to Note 15 , "Pensions and Postretirement Benefits," for additional information regarding net benefit costs. In 2019, we recorded a pre-tax loss of $16.3 million related to the sale of certain assets and certain liabilities of our brake products business unit located in Rome, Georgia and included in our Sealing Product segment. The loss is composed of the loss on the sale of the business, which closed in the third quarter of 2019, and the loss on the sale of the facility, which is anticipated to close in the first quarter of 2020. The sales reported by the business and included in our net sales for the years ended December 31, 2019, 2018, and 2017 were $22.1 million , $37.5 million , and $37.1 million , respectively. Additional disclosures are not presented since the assets, liabilities and results of operations are not significant to our consolidated financial position or results of operations. We recorded a loss of approximately $18.1 million on the redemption of certain of our debt instruments in the fourth quarter of 2018. Refer to Note 12 , "Long-term Debt - Senior Notes," for additional information regarding this transaction. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 5. Income Taxes Income (loss) from continuing operations before income taxes as shown in the Consolidated Statements of Operations consists of the following: Years Ended December 31, 2019 2018 2017 (in millions) Domestic $ (67.3 ) $ (75.3 ) $ 493.9 Foreign 71.6 90.4 52.1 Total $ 4.3 $ 15.1 $ 546.0 A summary of income tax expense (benefit) from continuing operations in the Consolidated Statements of Operations is as follows: Years Ended December 31, 2019 2018 2017 (in millions) Current: Federal $ (1.4 ) $ (4.3 ) $ (26.4 ) Foreign 24.9 22.8 17.2 State 1.3 (0.3 ) 0.9 24.8 18.2 (8.3 ) Deferred: Federal (6.4 ) (5.2 ) 14.9 Foreign (19.5 ) 1.4 17.1 State (2.4 ) 5.4 4.4 (28.3 ) 1.6 36.4 Total $ (3.5 ) $ 19.8 $ 28.1 The Tax Act contains several key tax provisions impacting us including the reduction of the corporate 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. We recognized the impact of these tax law changes, including the remeasurement of our deferred tax assets and liabilities based on the tax rates in effect at the time the deferred balances are expected to reverse in our income tax provision for the fourth quarter 2017, the period of enactment. The GILTI provisions require us to include in our U.S. income tax return certain current foreign subsidiary earnings net of foreign tax credits, subject to limitation. We elected to account for the GILTI tax in the period in which it is incurred. As a result of these provisions, our effective tax rate increased by 54.8% in 2019 and 10.4% in 2018. In December 2017, the 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 it was enacted. In these instances, the SEC's guidance allowed the recording of provisional amounts during a measurement period not to extend beyond one year of the enactment date. As the Tax Act was enacted at the end of 2017, and ongoing guidance and interpretation has been issued over the ensuing twelve months, we considered the impact of the transition tax, remeasurement of deferred tax assets and liabilities, and other items recorded in our year-end income tax provision for the fourth quarter 2017 to be a provisional estimate, and have further analyzed the year-end data and refined our calculations. These refinements were made in the third and fourth quarters of 2018, and we completed our accounting for the net impact in the fourth quarter of 2018. The effect of the Tax Act resulted in a $30.9 million provisional net tax benefit recognized in the year ended December 31, 2017. The net benefit was comprised of a $35.0 million tax benefit related to the remeasurement of deferred tax assets and liabilities, and a $53.9 million tax charge for the transition tax, net of a $43.5 million tax benefit for related foreign tax credits. Additionally, a $6.3 million tax benefit was recorded for additional tax planning strategies implemented in 2017. In the third and fourth quarters of 2018, refinements were made to our provisional amounts to incorporate the impact of additional IRS guidance regarding modifications to the transition tax and further analysis of our year-end data. These refinements resulted in a $2.3 million net tax charge comprised of a $7.3 million tax charge associated with the remeasurement of deferred tax assets and liabilities, and a $5.0 million tax benefit related to the reduction of the transition tax, net of foreign tax credits. In addition, GILTI and other provisions of the Tax Act, beginning in 2018, resulted in an additional tax charge of $5.6 million . Significant components of deferred income tax assets and liabilities at December 31, 2019 and 2018 are as follows: 2019 2018 (in millions) Deferred income tax assets: Net operating losses and tax credits $ 34.8 $ 43.4 Postretirement benefits other than pensions 2.1 2.1 Environmental reserves 8.6 7.5 Retained liabilities of previously owned businesses 1.0 1.1 Accruals and reserves 6.5 9.1 Operating leases 10.9 — Pension obligations 1.9 0.9 Inventories 6.2 4.2 Interest 17.8 11.4 Compensation and benefits 7.3 7.7 Gross deferred income tax assets 97.1 87.4 Valuation allowance (7.9 ) (23.9 ) Total deferred income tax assets 89.2 63.5 Deferred income tax liabilities: Depreciation and amortization (120.8 ) (85.9 ) Operating leases (10.9 ) — Cross currency swap (2.9 ) (1.2 ) Joint ventures (0.3 ) (0.3 ) Total deferred income tax liabilities (134.9 ) (87.4 ) Net deferred tax liabilities $ (45.7 ) $ (23.9 ) The net deferred tax assets (liabilities) are reflected on a jurisdictional basis on the December 31, 2019 and 2018 Consolidated Balance Sheets as follows: 2019 2018 (in millions) Other assets (non-current) $ 25.5 $ 11.0 Deferred taxes and non-current income taxes payable (71.2 ) (34.9 ) Net deferred tax liabilities $ (45.7 ) $ (23.9 ) At December 31, 2019 , we had $40.7 million of foreign net operating loss carryforwards, of which $26.0 million expire at various dates between 2020 and 2037, and $14.7 million have an indefinite carryforward period. We also had state net operating loss carryforwards with a tax effect of $7.0 million which expire at various dates between 2020 through 2040 . These net operating loss carryforwards may be used to offset a portion of future taxable income and, thereby, reduce or eliminate our state or foreign income taxes otherwise payable. We determined, based on the available evidence, that it is uncertain whether certain of our foreign subsidiaries will generate sufficient future taxable income to recognize certain of these deferred tax assets. As a result, valuation allowances of $7.9 million and $23.9 million have been recorded as of December 31, 2019 and 2018 , respectively. Valuation allowances primarily relate to certain state and foreign net operating losses and other net deferred tax assets in jurisdictions where future taxable income is uncertain. Valuation allowances may arise associated with deferred tax assets recorded in purchase accounting. In accordance with applicable accounting guidelines, any reversal of a valuation allowance that was recorded in purchase accounting reduces income tax expense. The effective income tax rate from operations varied from the statutory federal income tax rate as follows: Percent of Pretax Income Years Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % U.S. taxation of foreign profits, net of foreign tax credits 3.3 1.1 0.6 Research and employment tax credits (17.2 ) (7.7 ) (0.2 ) State and local taxes (22.4 ) 25.5 0.4 Foreign tax rate differences 152.3 27.8 (0.8 ) Statutory changes in tax rates 17.8 (1.1 ) (0.2 ) Valuation allowance (349.2 ) (6.3 ) 0.2 Changes in uncertain tax positions (9.0 ) 9.9 — Nondeductible expenses 57.3 5.7 0.2 Gain on reconsolidation of GST and OldCo — — (34.3 ) Reconsolidation step-up of net assets of GST and OldCo to fair value — — 7.9 GILTI and FDII 54.8 10.4 — Other Tax Act items — 48.2 (4.4 ) Other items, net 12.0 (3.1 ) 0.7 Effective income tax rate (79.3 )% 131.4 % 5.1 % During the fourth quarter of 2019, we made modifications to our foreign debt structures and as a result will be able to utilize the benefit of various tax attributes (including NOLs and interest expense carryforwards) which have been previously offset by valuation allowances. The reduction in the valuation allowance in the fourth quarter of 2019 was $15.0 million , which lowered fourth quarter and full year 2019 income tax expense by the same amount. Because of the transition tax and GILTI provisions, undistributed earnings of our foreign subsidiaries totaling $250.3 million at year-end have been subjected to U.S. income tax. Whether through the application of the 100 percent dividends received deduction provided in the Tax Act, or distribution of these previously-taxed earnings, we do not intend to distribute foreign earnings that will be subject to any significant incremental U.S. or foreign tax. During 2019, we repatriated $26.8 million of earnings from our foreign subsidiaries, resulting in no incremental U.S. tax and an immaterial amount of foreign withholding taxes. As a result, we have not recognized a deferred tax liability on our investment in foreign subsidiaries. As of December 31, 2019 and 2018 , we had $10.1 million and $2.9 million , respectively, of gross unrecognized tax benefits. Of the gross unrecognized tax benefit balances as of December 31, 2019 and 2018 , $8.5 million and $2.6 million , respectively, would have an impact on our effective tax rate if ultimately recognized. We record interest and penalties related to unrecognized tax benefits in income tax expense. In addition to the gross unrecognized tax benefits above, we had $2.7 million and $0.3 million accrued for interest and penalties at December 31, 2019 and 2018 , respectively. Income tax expense for the year ended December 31, 2019 includes $0.5 million for interest and penalties related to unrecognized tax benefits. Income tax expense for the years ended December 31, 2018 and 2017 , in total included $0.3 million for interest and penalties related to unrecognized tax benefits. The amounts listed above for accrued interest do not reflect the benefit of any tax deduction, which might be available if the interest were ultimately paid. A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (excluding interest) is as follows: (in millions) 2019 2018 2017 Balance at beginning of year $ 2.9 $ 3.8 $ 2.8 Reconsolidation of GST and OldCo — — 0.2 Additions based on tax positions related to the current year 1.2 0.2 0.3 Additions for tax positions of prior years 7.2 — 1.1 Reductions as a result of a lapse in the statute of limitations (1.2 ) (0.1 ) (0.3 ) Reductions as a result of audit settlements — (1.0 ) (0.3 ) Balance at end of year $ 10.1 $ 2.9 $ 3.8 U.S. federal income tax returns after 2013 remain open to examination. In June 2017, the U.S. Internal Revenue Service (“IRS”) began an examination of our 2014 U.S. federal income tax return. Although this examination is part of a routine and recurring cycle, we cannot predict the final outcome or expected conclusion date of the audit. We and our subsidiaries are also subject to income tax in multiple state and foreign jurisdictions. Various foreign and state tax returns are also currently under examination. The most significant of these include France and Germany. Substantially all significant state, local and foreign income tax returns for the years 2014 and forward are open to examination. We expect that some of these examinations may conclude within the next twelve months, however, the final outcomes are not yet determinable. If these examinations are concluded or effectively settled within the next twelve months, it could reduce the associated gross unrecognized tax benefits by approximately $2.4 million . In addition, another $1.6 million in gross unrecognized tax benefits may be recognized within the next twelve months as the applicable statute of limitations expires. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 6. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing the income (loss) by the applicable weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share is calculated using the weighted-average number of shares of common stock as adjusted for any potentially dilutive shares as of the balance sheet date. The computation of basic and diluted earnings per share for calendar years 2019, 2018, and 2017 is as follows (in millions, except per share data): 2019 2018 2017 Numerator (basic and diluted): Income (loss) from continuing operations $ 7.8 $ (4.7 ) $ 517.9 Income from discontinued operations 30.5 24.3 21.9 Net income $ 38.3 $ 19.6 $ 539.8 Denominator: Weighted-average shares – basic 20.7 20.9 21.3 Share-based awards 0.1 — 0.5 Weighted-average shares – diluted 20.8 20.9 21.8 Basic earnings (loss) per share: Continuing operations $ 0.38 $ (0.22 ) $ 24.25 Discontinued operations 1.48 1.16 1.03 Net income per share $ 1.86 $ 0.94 $ 25.28 Diluted earnings (loss) per share: Continuing operations $ 0.38 $ (0.22 ) $ 23.76 Discontinued operations 1.47 1.16 1.00 Net income per share $ 1.85 $ 0.94 $ 24.76 In the year ended December 31, 2018 there was a loss attributable to continuing operations. There were 0.2 million potentially dilutive shares excluded from the calculation of diluted earnings per share during that year since they were antidilutive. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 7. Inventories As of December 31, 2019 2018 (in millions) Finished products $ 80.6 $ 88.4 Work in process 23.7 21.1 Raw materials and supplies 56.1 67.6 160.4 177.1 Reserve to reduce certain inventories to LIFO basis (3.3 ) (2.9 ) Total inventories $ 157.1 $ 174.2 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 8. Property, Plant and Equipment As of December 31, 2019 2018 (in millions) Land $ 13.6 $ 13.3 Buildings and improvements 123.6 129.2 Machinery and equipment 341.8 352.1 Construction in progress 17.7 21.0 496.7 515.6 Less accumulated depreciation (277.9 ) (281.3 ) Total $ 218.8 $ 234.3 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 9. Goodwill and Other Intangible Assets The changes in the net carrying value of goodwill by reportable segment for the years ended December 31, 2019 and 2018 are as follows: Sealing Products Engineered Products Total (in millions) Goodwill as of December 31, 2017 $ 313.2 $ 10.9 $ 324.1 Foreign currency translation (1.9 ) (0.1 ) (2.0 ) Goodwill as of December 31, 2018 311.3 10.8 322.1 Foreign currency translation 5.4 0.1 5.5 Acquisitions 159.0 — 159.0 Dispositions (1.3 ) — (1.3 ) Goodwill as of December 31, 2019 $ 474.4 $ 10.9 $ 485.3 The goodwill balances reflected above are net of accumulated impairment losses of $27.8 million for the Sealing Products segment as of December 31, 2019 , 2018 and 2017 and $154.8 million for the Engineered Products segment as of December 31, 2019 and 2018 , and 2017 . Identifiable intangible assets are as follows: As of December 31, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (in millions) Amortized: Customer relationships $ 470.1 $ 166.2 $ 284.5 $ 150.2 Existing technology 117.5 50.8 112.3 45.1 Trademarks 39.4 24.1 35.3 23.1 Other 33.6 24.0 28.3 23.8 660.6 265.1 460.4 242.2 Indefinite-Lived: Trademarks 71.4 — 79.1 — Total $ 732.0 $ 265.1 $ 539.5 $ 242.2 Amortization expense for the years ended December 31, 2019 , 2018 and 2017 was $32.5 million , $28.9 million and $24.7 million , respectively. The estimated amortization expense for definite-lived (amortized) intangible assets for the next five years is as follows (in millions): 2020 $ 34.8 2021 $ 31.9 2022 $ 30.2 2023 $ 29.2 2024 $ 27.4 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 10. Leases We regularly enter into operating leases primarily for real estate, equipment, and vehicles. Operating lease arrangements are generally utilized to secure the use of assets if the terms and conditions of the lease or the nature of the asset makes the lease arrangement more favorable than a purchase. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We have elected an accounting policy to combine lease and non-lease components. Our building leases have remaining terms up to eleven years , some of which contain options to renew up to five years , and some of which contain options to terminate. Some leases contain non-lease components, which may include items such as building common area maintenance, building parking, or general service and maintenance provided for leased assets by the lessor. Our vehicle, equipment, and other leases have remaining lease terms up to seven years , some of which contain options to renew or become evergreen leases, with automatic renewing one-month terms, and some of which have options to terminate. Our right of use assets and liabilities related to operating leases as of December 31, 2019 are as follows: Balance Sheet Classification December 31, (in millions) Right-of-use assets Other assets $ 37.5 Current liability Accrued expenses $ 9.3 Long-term liability Other liabilities 28.4 Total liability $ 37.7 Approximately 86% of the dollar value of our operating lease assets and liabilities arise from real estate leases and approximately 14% arise from equipment and vehicle leases. Most of our leases do not provide an implicit rate for calculating the right of use assets and corresponding lease liabilities. Accordingly, we determine the interest rate that we would have to pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments in similar economic environments. We used the incremental borrowing rate at January 1, 2019 for all leases that commenced prior to that date. In the year ended December 31, 2019 , we had operating lease costs of $10.9 million and our operating cash flows from operating leases were $11.1 million . Our short-term and variable leases costs were $0.9 million . We entered into additional operating leases, including leases acquired through business acquisitions, and renewed existing leases that resulted in new right-of-use assets totaling $20.8 million for the year ended December 31, 2019. Our weighted-average remaining lease term and weighted average discount rate at December 31, 2019 were 5.9 years and 3.9% , respectively. A maturity analysis of undiscounted operating lease liabilities is shown in the table below: Operating Lease Payments (in millions) 2020 $ 10.6 2021 7.9 2022 5.7 2023 5.1 2024 3.8 Thereafter 9.2 Total lease payments 42.3 Less: interest (4.6 ) Present value of lease liabilities $ 37.7 The operating lease payments listed in the table above include all current leases. The payments also include all renewal periods that we are reasonably certain to exercise. We rarely enter into finance leases or act as a lessor. Since finance lease amounts, lessor details, and finance lease related costs are not significant to our consolidated financial position or results of operations, additional disclosures regarding finance leases are not presented. Net rent expense was $13.5 million and $12.2 million for the years ended December 31, 2018 and 2017, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 11. Accrued Expenses As of December 31, 2019 2018 (in millions) Salaries, wages and employee benefits $ 43.7 $ 53.6 Interest 5.1 4.9 Environmental 25.2 16.4 Warranty 4.1 8.9 Income and other taxes 22.6 21.2 Operating lease liability 9.3 — Other 27.3 27.0 $ 137.3 $ 132.0 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 12. Long-term Debt As of December 31, 2019 2018 (in millions) Senior notes $ 345.3 $ 344.9 Revolving debt 133.9 116.7 Term loan facility 149.1 — Other notes payable 1.0 3.3 629.3 464.9 Less current maturities of long-term debt 4.1 2.4 $ 625.2 $ 462.5 Revolving Credit Facility On September 25, 2019, we entered into a First Amendment (the "First Amendment") to our Second Amended and Restated Credit Agreement (the "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 Credit Agreement provides for a five -year, senior secured revolving credit facility of $400.0 million (the “Revolving Credit Facility”) and a five -year, senior secured term loan facility of $150.0 million (the "Term Loan Facility" and, together with the Revolving Credit Facility, the "Facilities"). 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 or 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. Initially, borrowings under the Facilities bore interest at an annual rate of LIBOR plus 1.50% or base rate plus 0.50% , with the interest rates under the Facilities being 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 at an annual rate of 0.175% , which rate is also subject to incremental increase or decrease based on a consolidated total net leverage ratio. The Term Loan Facility will amortize on a quarterly basis in an annual amount equal to 2.50% of the original principal amount of the Term Loan Facility in each of years one through three, 5.00% of such original principal amount in year four, and 1.25% of such original principal amount in each of the first three quarters of year five, with the remaining outstanding principal amount payable at maturity. The Facilities are subject to prepayment with the net cash proceeds of certain asset sales not reinvested in acquisitions within a specified period, casualty or condemnation events, and non-permitted debt issuances. EnPro and EnPro Holdings are the permitted borrowers under the Revolving Credit Facility. We have 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 our domestic, consolidated subsidiaries (other than any subsidiaries that may be designated as "unrestricted" by the Company from time to time) is required to guarantee the obligations of the borrowers under the Revolving Credit Facility, and each of our existing domestic, consolidated subsidiaries has entered into the Credit Agreement to provide such a guarantee. Borrowings under the Revolving Credit Facility are secured by a first-priority pledge of certain assets. The 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 Credit Agreement. We were in compliance with all covenants of the Credit Agreement as of December 31, 2019 . The borrowing availability under our Revolving Credit Facility at December 31, 2019 was $248.7 million after giving consideration to $17.5 million of outstanding letters of credit and $133.9 million of outstanding borrowings. The balance of our outstanding Term Loan Facility was $149.1 million . Senior Notes On October 17, 2018, we completed the offering of $350.0 million aggregate principal amount of 5.75% Senior Notes due 2026 (the "Senior Notes") and applied the net proceeds of that offering, together with borrowings under the Revolving Credit Facility, to redeem on October 31, 2018 the full $450.0 million aggregate principal amount of the outstanding 5.875% Senior Notes due 2022 (the "Old Notes"). The Old Notes were redeemed at a price equal to 102.938% of the aggregate principal amount thereof plus accrued and unpaid interest to, but not including, the redemption date. We recorded a loss on the redemption of the Old Notes of approximately $18.1 million in the fourth quarter of 2018 which is included in other (non-operating) expense in the accompanying Consolidated Statement of Operations for the year ended December 31, 2018. The Senior Notes were issued to investors at 100% of the principal amount thereof. The Senior Notes are unsecured, unsubordinated obligations of EnPro and mature on October 15, 2026. Interest on the Senior Notes accrues at a rate of 5.75% per annum and is payable semi-annually in cash in arrears on April 15 and October 15 of each year, commencing April 15, 2019. 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. On or after October 15, 2021, 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. In addition, we may redeem a portion of the aggregate principal amount of the Senior Notes before October 15, 2021 with the net cash proceeds from certain equity offerings at a specified redemption price plus accrued and unpaid interest, if any, to, but not including, the redemption date. We may also redeem some or all of the Senior Notes before October 15, 2021 at a redemption price of 100% of the principal amount, plus accrued and unpaid interest, if any, to, but not including, the redemption date, plus a “make whole” premium. Each holder of the Senior Notes may require us to repurchase some or all of the Senior Notes held by such holder 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 repurchasing shares of our common stock, subject in each case to specified exceptions and qualifications set forth in the indenture. The indenture further required us to apply the net cash proceeds of certain asset sales not reinvested in acquisitions, or used to repay or otherwise reduce specified indebtedness within a specified period, in the event of the net proceeds exceeding a specified amount, to offer to repurchase the Senior Notes at a price equal to 100% of the principal amount thereof plus accrued and unpaid interest. Scheduled Principal Payments Future principal payments on long-term debt are as follows: (in millions) 2020 $ 4.1 2021 4.1 2022 4.8 2023 7.6 2024 263.3 Thereafter 350.1 $ 634.0 The payments for long-term debt shown in the table above reflect the contractual principal amount for the Senior Notes. In the Consolidated Balance Sheets, these amounts are shown net of unamortized debt discounts aggregating $4.7 million pursuant to applicable accounting rules. Debt Issuance Costs During 2019, we capitalized $1.6 million of debt issuance costs primarily attributable to the First Amendment of the Credit Agreement as well costs associated with the issuance of our Senior Notes. During 2018, we capitalized $6.6 million |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | 13. Derivatives and Hedging We are exposed to foreign currency risks that arise from normal business operations. These risks include the translation of local currency balances on our foreign subsidiaries’ balance sheets, intercompany loans with foreign subsidiaries and transactions denominated in foreign currencies. We strive to control our exposure to these risks through our normal operating activities and, where appropriate, through derivative instruments. We periodically enter into contracts to hedge forecasted transactions that are denominated in foreign currencies. The notional amount of foreign exchange contracts was $5.2 million and $7.7 million at December 31, 2019 and 2018 , respectively. All foreign exchange contracts outstanding at December 31, 2019 expired in January of 2020. The notional amounts of all of our foreign exchange contracts were recorded at their fair market value as of December 31, 2019 with changes in market value recorded in income. The earnings impact of any foreign exchange contract that is specifically related to the purchase of inventory is recorded in cost of sales and the changes in market value of all other contracts are recorded in selling, general and administrative expense in the Consolidated Statements of Operations. The balances of foreign exchange derivative assets are recorded in other current assets and the balances of foreign exchange derivative liabilities are recorded in accrued expenses in the Consolidated Balance Sheets. In March 2018, we entered into cross currency swap agreements (the "Initial Swap") 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 Old 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 Old Notes maturing in 2022. We terminated and settled these agreements on September 7, 2018. As a result of this termination, we received $11.9 million , of which $9.3 million represented the fair value of the contracts as of the settlement date and $2.6 million represented interest receivable. Unrealized gains totaling $7.0 million , net of tax, as of the termination date will remain in accumulated other comprehensive loss until the complete or substantially complete liquidation of our investment in the underlying foreign operations. In September 2018, we entered into new cross currency swap agreements (the "New Swap") 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 USD-denominated Old Notes, including the semi-annual interest payments thereunder, to interest payments on fixed-rate Euro-denominated debt of 172.8 million EUR with a weighted average interest rate of 2.8% , with interest payment dates of March 15 and September 15 of each year. The New Swap agreement matures on September 15, 2022. In May 2019, we entered into additional cross currency swap agreements (the "Additional Swap") with a notional amount of $100.0 million to manage an increased portion of our foreign currency risk by effectively converting a portion of the interest payments related to our fixed-rate USD-denominated Senior Notes, including the semi-annual interest payments thereunder, to interest payments on the fixed-rate Euro-denominated debt of 89.6 million EUR with a weighted average interest rate of 3.5% , with interest payment dates of April 15 and October 15 of each year. The Additional Swap agreement matures on October 15, 2026. During the term of the swap agreements, 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 each of the swaps. There was no principal exchange at the inception of the arrangements, 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 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 swaps as qualifying hedging instruments and are accounting for them as a net investment hedge. At December 31, 2019, the fair values of the New Swap and the Additional Swap were a $12.3 million asset and a $0.6 million liability, respectively, and were recorded within other assets and other liabilities on the Consolidated Balance Sheet. The gains and losses resulting from fair value adjustments to the cross currency swap agreements, 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 swaps 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 | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 14. Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of December 31, 2019 December 31, 2018 (in millions) Assets Time deposits $ 22.9 $ 33.4 Foreign currency derivatives 12.3 4.5 Deferred compensation assets 10.9 8.6 $ 46.1 $ 46.5 Liabilities Deferred compensation liabilities $ 11.3 $ 8.9 Foreign currency derivatives 0.6 — $ 11.9 $ 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 approximate their respective fair values, except for the following: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (in millions) Long-term debt $ 629.3 $ 658.0 $ 464.9 $ 462.1 |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Postretirement Benefits | 15. Pensions and Postretirement Benefits We have non-contributory defined benefit pension plans covering eligible employees in the United States, Mexico and several European countries. Salaried employees’ benefit payments are generally determined using a formula that is based on an employee’s compensation and length of service. We closed our defined benefit pension plan for new salaried employees in the United States who joined the Company after January 1, 2006, and, effective January 1, 2007, benefits were frozen for all salaried employees who were not age 40 or older as of December 31, 2006. Hourly employees’ benefit payments are generally determined using stated amounts for each year of service. Our employees also participate in voluntary contributory retirement savings plans for salaried and hourly employees maintained by us. Under these plans, eligible employees can receive matching contributions up to the first 6% of their eligible earnings. Effective January 1, 2007, those employees whose defined benefit pension plan benefits were frozen receive an additional 2% company contribution each year. Beginning on August 1, 2016, this additional contribution ceased being provided to future hires at the company, but was retained for those employees already receiving it. We recorded $11.7 million , $10.7 million and $9.0 million in expenses in 2019 , 2018 and 2017 , respectively, for matching contributions under these plans. Our general funding policy for qualified defined benefit pension plans historically has been to contribute amounts that are at least sufficient to satisfy regulatory funding standards. No contributions were made in 2019 . In 2018 and 2017 , we contributed $20.0 million and $8.8 million , respectively, in cash to our U.S. pension plans. The contributions were made in these years in order to meet a funding level sufficient to avoid variable fees from the PBGC on the underfunded portion of our pension liability. We do not anticipate making contributions in 2020 to our U.S. defined benefit pension plans and we expect to make total contributions of approximately $1.0 million in 2020 to the foreign pension plans. 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 $12.8 million was recognized in the third quarter of 2018. This charge was recorded in other (non-operating) expense on the Consolidated Statement of Operations for the year ended December 31, 2018. The projected benefit obligation and fair value of plan assets for the defined benefit pension plans with projected benefit obligations in excess of plan assets were $66.0 million and $48.3 million at December 31, 2019, and $53.0 million and $41.1 million at December 31, 2018, respectively. The accumulated benefit obligation and fair value of plan assets for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets were $57.2 million and $44.8 million at December 31, 2019 , and $47.6 million and $38.7 million at December 31, 2018 , respectively. We provide, through non-qualified plans, supplemental pension benefits to a limited number of employees. Certain of our subsidiaries also sponsor unfunded postretirement plans that provide certain health-care and life insurance benefits to eligible employees. The health-care plans are contributory, with retiree contributions adjusted periodically, and contain other cost-sharing features, such as deductibles and coinsurance. The life insurance plans are generally noncontributory. The amounts included in “Other Benefits” in the following tables include the non-qualified plans and the other postretirement plans discussed above. The following table sets forth the changes in projected benefit obligations and plan assets of our defined benefit pension and other non-qualified and postretirement plans as of and for the years ended December 31, 2019 and 2018 . Pension Benefits Other Benefits 2019 2018 2019 2018 (in millions) Change in Projected Benefit Obligations Projected benefit obligations at beginning of year $ 276.8 $ 369.2 $ 4.1 $ 4.7 Service cost 4.4 4.8 0.1 0.1 Interest cost 12.2 12.8 0.1 0.1 Actuarial loss (gain) 46.6 (23.5 ) (0.2 ) (0.6 ) Settlements (0.3 ) (71.1 ) — — Benefits paid (10.8 ) (14.0 ) (0.5 ) (0.7 ) Other 0.6 (1.4 ) 0.4 0.5 Projected benefit obligations at end of year 329.5 276.8 4.0 4.1 Change in Plan Assets Fair value of plan assets at beginning of year 267.6 350.7 Actual return on plan assets 56.5 (17.9 ) Administrative expenses (0.8 ) (0.9 ) Benefits paid (10.8 ) (14.0 ) Settlements (0.3 ) (71.1 ) Company contributions 1.3 20.8 Fair value of plan assets at end of year 313.5 267.6 Underfunded Status at End of Year $ (16.0 ) $ (9.2 ) $ (4.0 ) $ (4.1 ) Pension Benefits Other Benefits 2019 2018 2019 2018 (in millions) Amounts Recognized in the Consolidated Balance Sheets Long-term assets $ 1.7 $ 2.7 $ — $ — Current liabilities (0.6 ) (0.8 ) (0.2 ) (0.3 ) Current liabilities held for sale — — (0.7 ) — Long-term liabilities (17.1 ) (11.1 ) (3.1 ) (3.8 ) $ (16.0 ) $ (9.2 ) $ (4.0 ) $ (4.1 ) Pre-tax charges recognized in accumulated other comprehensive loss as of December 31, 2019 and 2018 consist of: Pension Benefits Other Benefits 2019 2018 2019 2018 (in millions) Net actuarial (gain) loss $ 60.0 $ 60.8 $ (1.0 ) $ (0.9 ) Prior service cost 1.4 1.1 — 0.2 $ 61.4 $ 61.9 $ (1.0 ) $ (0.7 ) The accumulated benefit obligation for all defined benefit pension plans was $317.8 million and $269.0 million at December 31, 2019 and 2018 , respectively. The accumulated postretirement benefit obligation for all other postretirement benefit plans was $3.9 million and $3.8 million at December 31, 2019 and 2018, respectively. The following table sets forth the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for our defined benefit pension and other non-qualified and postretirement plans for the years ended December 31, 2019 , 2018 and 2017 . Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 (in millions) Net Periodic Benefit Cost Service cost $ 4.4 $ 4.8 $ 4.5 $ 0.1 $ 0.1 $ 0.1 Interest cost 12.2 12.8 12.9 0.1 0.1 0.1 Expected return on plan assets (15.7 ) (19.0 ) (20.1 ) — — — Amortization of prior service cost 0.2 0.3 0.3 0.2 0.1 0.1 Amortization of net loss 6.6 5.1 7.3 — — — Settlements — 12.7 — — — — Curtailments — — (0.1 ) — — — Deconsolidation of GST — — (0.3 ) — — — Net periodic benefit cost 7.7 16.7 4.5 0.4 0.3 0.3 Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 (in millions) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) 5.8 13.3 (5.8 ) (0.1 ) (0.6 ) 0.1 Prior service cost 0.5 — 0.5 — — — Amortization of net loss (6.6 ) (5.1 ) (7.3 ) — — — Amortization of prior service cost (0.2 ) (0.3 ) (0.3 ) (0.2 ) (0.1 ) (0.1 ) Settlements — (12.7 ) — — — — Total recognized in other comprehensive income (0.5 ) (4.8 ) (12.9 ) (0.3 ) (0.7 ) — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ 7.2 $ 11.9 $ (8.4 ) $ 0.1 $ (0.4 ) $ 0.3 Included in the net periodic benefit cost table above are $0.8 million , $0.9 million , and $1.0 million for the years ended December 31, 2019, 2018 and 2017, respectively, representing pension and other postretirement plan service cost related to the Power Systems segment that is reported in income from discontinued operations in the accompanying Consolidated Statements of Operations. Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Discount rate 3.375 % 4.375 % 3.75 % 3.375 % 4.375 % 3.75 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount rate 4.375 % 4.0 % 4.25 % 4.375 % 3.75 % 4.25 % Expected long-term return on plan assets 6.0 % 6.0 % 7.25 % — — — Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year. The discount rate was determined with a model which uses a theoretical portfolio of high quality corporate bonds specifically selected to produce cash flows closely related to how we would settle our retirement obligations. This produced a discount rate of 3.375% at December 31, 2019 . As of the date of these financial statements, there are no known or anticipated changes in our discount rate assumption that will impact our pension expense in 2020 . A 25 basis point decrease (increase) in our discount rate, holding constant our expected long-term return on plan assets and other assumptions, would increase (decrease) pension expense by approximately $0.8 million per year. The overall expected long-term rate of return on assets was determined based upon weighted-average historical returns over an extended period of time for the asset classes in which the plans invest according to our current investment policy. We use the Pri-2012 base mortality table with the MP-2019 projection scale to value our domestic pension liabilities. Assumed Health Care Cost Trend Rates at December 31 2019 2018 Health care cost trend rate assumed for next year 8.0 % 8.0 % Rate to which the cost trend rate is assumed to decline (the ultimate rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2027 2026 Plan Assets The asset allocation for pension plans at the end of 2019 and 2018 , and the target allocation for 2020 , by asset category are as follows: Target Allocation Plan Assets at December 31, 2020 2019 2018 Asset Category Equity securities 30 % 29 % 27 % Fixed income 70 % 71 % 73 % 100 % 100 % 100 % Our investment goal is to maximize the return on assets, over the long term, by investing in equities and fixed income investments while diversifying investments within each asset class to reduce the impact of losses in individual securities. Equity investments include a mix of U.S. large capitalization equities, U.S. small capitalization equities and non-U.S. equities. Fixed income investments include a mix of treasury obligations and high-quality money market instruments. The asset allocation policy is reviewed and any significant variation from the target asset allocation mix is rebalanced periodically. The plans have no direct investments in EnPro common stock. The plans invest exclusively in mutual funds whose holdings are marketable securities traded on recognized markets and, as a result, would be considered Level 1 assets. The investment portfolios of the various funds at December 31, 2019 and 2018 are summarized as follows: 2019 2018 (in millions) Mutual funds – U.S. equity $ 55.7 $ 42.7 Mutual funds – international equity 35.9 29.5 Mutual funds - fixed income treasury and money market 221.1 194.6 Cash equivalents 0.8 0.8 $ 313.5 $ 267.6 Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the following calendar years: Pension Benefits Other Benefits (in millions) 2020 $ 12.4 $ 0.2 2021 13.6 1.4 2022 14.6 0.3 2023 16.1 0.2 2024 17.3 0.2 Years 2025 – 2029 99.8 0.7 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 16. Shareholders' Equity We have 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 and other relevant matters. In accordance with this policy, total dividend payments of $20.9 million , $20.3 million , and $19.0 million were made during the years ended December 31, 2019 , 2018 , and 2017 , respectively. In February 2020, our board of directors declared a cash dividend of $0.26 per share payable on March 18, 2020 to shareholders of record at the close of business on March 4, 2020. In October 2018, our board of directors authorized a new two -year program for the repurchase of up to $50.0 million of our outstanding common shares. During 2019, we repurchased 0.2 million shares for $15.0 million . The remaining amount of authorized purchases in the program at December 31, 2019 was $35.0 million . The board of directors' authorization expires in October 2020. Subsequent to December 31, 2019, we repurchased additional shares for $1.6 million through March 9, 2020. The remaining amount of authorized purchases in the program at that date was $33.4 million . In October 2017, our board of directors authorized a program for the repurchase of up to $50.0 million of our outstanding common shares. During 2018, we repurchased 0.7 million shares for $50.0 million under this program. In October 2015, our board of directors authorized the purchase of up to $50.0 million of our outstanding common shares from time to time, which expired in October 2017. During 2017, we repurchased 0.2 million shares for $11.5 million , all of which settled during the year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | 17. Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component (after tax) are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Balance at December 31, 2016 $ (21.2 ) $ (49.7 ) $ (70.9 ) Other comprehensive income before reclassifications 14.4 3.2 17.6 Amounts reclassified from accumulated other comprehensive loss — 4.9 4.9 Net current-period other comprehensive income 14.4 8.1 22.5 Balance at December 31, 2017 (6.8 ) (41.6 ) (48.4 ) Other comprehensive loss before reclassifications (3.8 ) (7.1 ) (10.9 ) Amounts reclassified from accumulated other comprehensive loss — 13.8 13.8 Net current-period other comprehensive income (loss) (3.8 ) 6.7 2.9 Balance at December 31, 2018 (10.6 ) (34.9 ) (45.5 ) Adoption of new accounting standard — (11.5 ) (11.5 ) Adjusted balance at December 31, 2018 (10.6 ) (46.4 ) (57.0 ) Other comprehensive income (loss) before reclassifications 20.4 (5.1 ) 15.3 Amounts reclassified from accumulated other comprehensive loss — 5.3 5.3 Net current-period other comprehensive income 20.4 0.2 20.6 Balance at December 31, 2019 $ 9.8 $ (46.2 ) $ (36.4 ) Reclassifications out of accumulated other comprehensive loss are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Statement of Operations Caption Years Ended December 31, 2019 2018 2017 (in millions) Pension and other postretirement plans adjustments: Amortization of actuarial losses $ 6.6 $ 5.1 $ 7.3 (1) Amortization of prior service costs 0.4 0.4 0.4 (1) Settlement loss — 12.7 — (1) Total before tax 7.0 18.2 7.7 Income from continuing operations before income taxes Tax benefit (1.7 ) (4.4 ) (2.8 ) Income tax expense Net of tax $ 5.3 $ 13.8 $ 4.9 Income (loss) from continuing operations (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. Since these are components of net periodic pension cost other than service cost, the affected Consolidated Statement of Operations caption is other (non-operating) expense. (See Note 15 , "Pensions and Postretirement Benefits" for additional details). |
Equity Compensation Plan
Equity Compensation Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Compensation Plan | 18. Equity Compensation Plan We have an equity compensation plan (the “Plan”) that provides for the delivery of up to 6.2 million shares pursuant to various market and performance-based incentive awards. As of December 31, 2019 , there are 0.8 million shares available for future awards. Our policy is to issue new shares to satisfy share delivery obligations for awards made under the Plan. The Plan allows awards of restricted share units to be granted to executives and other key employees. Generally, all share units will vest in three years . Compensation expense related to the restricted share units is based upon the market price of the underlying common stock as of the date of the grant and is amortized over the applicable vesting period using the straight-line method. As of December 31, 2019 , there was $5.5 million of unrecognized compensation cost related to restricted share units expected to be recognized over a weighted-average vesting period of 1.3 years . Under the terms of the Plan, performance share awards were granted to executives and other key employees during 2019 , 2018 and 2017 . Each grant will vest if EnPro achieves specific financial objectives at the end of each three -year performance period. Additional shares may be awarded if objectives are exceeded, but some or all shares may be forfeited if objectives are not met. Performance shares earned at the end of a performance period, if any, will be paid in actual shares of our common stock, less the number of shares equal in value to applicable withholding taxes if the employee chooses. During the performance period, a grantee receives dividend equivalents accrued in cash, and shares are forfeited if a grantee terminates employment. Compensation expense related to the performance shares granted is computed using the fair value of the awards at the date of grant. Potential shares to be issued for performance share awards granted in 2019 , 2018 and 2017 are subject to a market condition based on the performance of our stock, measured based upon a calculation of total shareholder return, compared to a group of peer companies. The fair value of these awards was determined using a Monte Carlo simulation methodology. Compensation expense for these awards is computed based upon this grant date fair value using the straight-line method over the applicable performance period. The Monte Carlo simulation model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair value of each award. We issued performance share awards to eligible participants on February 11, 2019, February 12, 2018, and February 13, 2017. We used the following assumptions in determining the fair value of these awards: Expected stock price volatility Annual expected dividend yield Risk free interest rate Shares granted February 11, 2019 EnPro Industries, Inc. 30.72 % 1.40 % 2.53 % S&P 600 Capital Goods Index 34.36 % n/a 2.53 % Shares granted February 12, 2018 EnPro Industries, Inc. 32.41 % 1.15 % 1.92 % S&P 600 Capital Goods Index 34.90 % n/a 1.92 % Shares granted February 13, 2017 EnPro Industries, Inc. 31.23 % 1.23 % 1.45 % S&P 600 Capital Goods Index 34.86 % n/a 1.45 % The expected volatility assumption for us and each member of the peer group is based on each entity’s historical stock price volatility over a period equal to the length from the valuation date to the end of the performance cycle. The annual expected dividend yield is based on annual expected dividend payments and the stock price on the date of grant. The risk free rate equals the yield, as of the valuation date, on zero-coupon U.S. Treasury STRIPS that have a remaining term equal to the length of the remaining performance cycle. As of December 31, 2019 , there was $3.8 million of unrecognized compensation cost related to nonvested performance share awards that is expected to be recognized over a weighted-average vesting period of 1.4 years. A summary of award activity under these plans is as follows: Restricted Share Units Performance Shares Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested at December 31, 2016 262,022 $ 59.43 283,515 $ 58.84 Granted 77,120 68.55 84,534 76.93 Vested (79,417 ) 64.16 (76,487 ) 63.81 Forfeited (17,607 ) 56.32 (8,823 ) 61.43 Achievement level adjustment — — (12,140 ) 63.81 Shares settled for cash (6,561 ) 54.29 — — Nonvested at December 31, 2017 235,557 57.87 270,599 61.92 Granted 73,817 82.03 77,076 93.61 Vested (58,188 ) 63.64 (51,207 ) 63.81 Forfeited (19,853 ) 65.17 (25,142 ) 65.14 Achievement level adjustment — — (71,671 ) 63.81 Shares settled for cash (12,403 ) 64.19 — — Nonvested at December 31, 2018 218,930 63.46 199,655 75.87 Granted 78,576 68.48 116,342 77.15 Vested (78,958 ) 44.44 (75,312 ) 49.68 Forfeited (6,830 ) 72.99 (12,130 ) 82.26 Achievement level adjustment — — 24,105 49.68 Shares settled for cash (12,294 ) 43.85 — — Nonvested at December 31, 2019 199,424 $ 72.72 252,660 $ 81.46 The number of nonvested performance share awards shown in the table above represents the maximum potential shares to be issued. We account for forfeitures when they occur as opposed to estimating the number of awards that are expected to vest as of the grant date. Non-qualified and incentive stock options were granted in 2011 and in 2019. No stock option has a term exceeding 10 years from the date of grant. All stock options were granted at not less than 100% of fair market value (as defined) on the date of grant. As of December 31, 2019 , there was $0.7 million of unrecognized compensation cost related to stock options. The following table provides certain information with respect to stock options as of December 31, 2019: Range of Exercise Price Share Options Outstanding Stock Options Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life Under $60.00 18,187 18,187 $ 42.24 1.12 Over $60.00 40,937 — 66.31 9.57 Total 59,124 18,187 $ 58.91 6.97 We determine the fair value of stock options using the Black-Scholes option pricing formula. Key inputs into this formula include expected term, expected volatility, expected dividend yield, and the risk-free interest rate. This fair value is amortized on a straight line basis over the vesting period. The options issued in 2019 vest pro-rata over year three , four , and five from the grant date. The expected term represents the period that our stock options are expected to be outstanding, and is determined based on historical experience of similar awards, given the contractual terms of the awards, vesting schedules, and expectations of future employee behavior. The fair value of stock options reflects a volatility factor calculated using historical market data for EnPro's common stock. The time frame used was approximated as a seven year period from the grant date for the awards in 2019. The dividend assumption is based on our current expectations for our dividend policy. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining life equal to the option's expected life. When estimating forfeitures, we consider voluntary termination behaviors as well as analysis of actual option forfeitures. The option awards issued in 2019 had a fair value of $18.87 per share at their grant date. The following assumptions were used to estimate the fair value of the 2019 option awards: Average expected term 7 years Expected volatility 29.68 % Risk-free interest rate 1.95 % Expected dividend yield 1.51 % A summary of option activity under the Plan as of December 31, 2019 , and changes during the year then ended, is presented below: Share Options Outstanding Weighted Average Exercise Price Balance at December 31, 2018 18,187 $ 42.24 Granted 40,937 66.31 Balances at December 31, 2019 59,124 $ 58.91 The year-end intrinsic value related to stock options is presented below: As of and for the Years Ended December 31, (in millions) 2019 2018 2017 Options outstanding $ 0.5 $ 0.3 $ 0.9 Options exercisable $ 0.4 $ 0.3 $ 0.9 Options exercised $ — $ — $ 2.2 We recognized the following equity-based employee compensation expenses and benefits related to our Plan activity: Years Ended December 31, (in millions) 2019 2018 2017 Compensation expense $ 6.8 $ 6.5 $ 9.5 Related income tax benefit $ 2.2 $ 1.9 $ 3.6 Each non-employee director received an annual grant of phantom shares equal in value to $110,000 in the year ended December 31, 2019 and $95,000 in the years ended December 31, 2018 and 2017 . With respect to certain phantom shares awarded in prior years, we will pay each non-employee director in cash the fair market value of the director's phantom shares upon termination of service as a member of the board of directors. The remaining phantom shares granted will be paid out in the form of one share of our common stock for each phantom share, with the value of any fractional phantom shares paid in cash. Expense recognized in the years ended December 31, 2019 , 2018 and 2017 related to these phantom share grants was $0.9 million , $0.7 million and $1.2 million , respectively. No cash payments were used to settle phantom shares in 2019. Cash payments of $0.7 million and $1.4 million were used to settle phantom shares in 2018 and 2017, respectively. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | 19. Business Segment Information We aggregate our operating businesses into two 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, fluid transfer products for the pharmaceutical and biopharmaceutical 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. In addition to these products, we also provide cleaning and refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment. The equipment services is used to produce advanced microchips for smartphones, autonomous vehicles, high-speed wireless connectivity, artificial intelligence, and other applications. 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. 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 years ended December 31, 2019 , 2018 , and 2017 were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Sales Sealing Products $ 911.5 $ 954.4 $ 804.3 Engineered Products 298.3 323.9 301.1 1,209.8 1,278.3 1,105.4 Intersegment sales (4.1 ) (4.2 ) (4.0 ) Total sales $ 1,205.7 $ 1,274.1 $ 1,101.4 Segment Profit Sealing Products $ 93.8 $ 85.2 $ 90.4 Engineered Products 29.3 40.1 30.1 Total segment profit 123.1 125.3 120.5 Corporate expenses (36.4 ) (34.9 ) (36.3 ) Interest expense, net (18.2 ) (27.3 ) (49.4 ) Gain on reconsolidation of GST and OldCo — — 534.4 Other expense, net (64.2 ) (48.0 ) (23.2 ) Income from continuing operations before income taxes $ 4.3 $ 15.1 $ 546.0 Years Ended December 31, 2019 2018 2017 (in millions) Net Sales by Geographic Area United States $ 630.2 $ 736.2 $ 588.5 Europe 301.2 278.6 266.1 Other foreign 274.3 259.3 246.8 Total $ 1,205.7 $ 1,274.1 $ 1,101.4 Net sales are attributed to countries based on location of the customer. 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 did business for the years ended December 31, 2019 and 2018 : Year Ended December 31, 2019 (in millions) Sealing Products Engineered Products Total Aerospace $ 57.4 $ 12.0 $ 69.4 Automotive 7.0 81.5 88.5 Chemical and material processing 48.0 49.4 97.4 Food and pharmaceutical 38.8 0.7 39.5 General industrial 176.2 93.9 270.1 Medium-duty/heavy-duty truck 340.9 1.2 342.1 Oil and gas 62.4 43.5 105.9 Power generation 47.7 9.5 57.2 Semiconductors 115.7 — 115.7 Other 13.9 6.0 19.9 Total third party sales $ 908.0 $ 297.7 $ 1,205.7 Year Ended December 31, 2018 (in millions) Sealing Products Engineered Products Total Aerospace $ 54.1 $ 8.4 $ 62.5 Automotive 5.3 97.3 102.6 Chemical and material processing 54.5 49.5 104.0 Food and pharmaceutical 37.1 1.0 38.1 General industrial 174.2 99.3 273.5 Medium-duty/heavy-duty truck 387.3 1.1 388.4 Oil and gas 53.9 46.8 100.7 Power generation 57.8 11.2 69.0 Semiconductors 113.7 — 113.7 Other 13.0 8.6 21.6 Total third party sales $ 950.9 $ 323.2 $ 1,274.1 No customer accounted for 10% or more of net sales in 2019 , 2018 or 2017 . Years Ended December 31, 2019 2018 2017 (in millions) Capital Expenditures Sealing Products $ 14.2 $ 26.0 $ 20.4 Engineered Products 7.4 10.1 9.9 Total capital expenditures $ 21.6 $ 36.1 $ 30.3 Depreciation and Amortization Expense Sealing Products $ 53.1 $ 50.7 $ 41.8 Engineered Products 14.8 15.4 16.8 Total depreciation and amortization $ 67.9 $ 66.1 $ 58.6 As of December 31, 2019 2018 (in millions) Assets Sealing Products $ 1,337.6 $ 1,008.8 Engineered Products 238.3 220.6 Corporate 205.1 220.3 Discontinued operations 254.1 266.1 $ 2,035.1 $ 1,715.8 Long-Lived Assets United States $ 130.1 $ 145.0 France 24.2 26.0 Other Europe 20.7 21.9 Other foreign 43.8 41.4 Total $ 218.8 $ 234.3 Corporate assets include all of our cash and cash equivalents and long-term deferred income taxes. Long-lived assets consist of property, plant and equipment. |
Subsidiary Asbestos Bankruptcie
Subsidiary Asbestos Bankruptcies | 12 Months Ended |
Dec. 31, 2019 | |
Reorganizations [Abstract] | |
Subsidiary Asbestos Bankruptcies | 20. Subsidiary Asbestos Bankruptcies Overview The historical business operations of certain of our subsidiaries, principally GST LLC and Anchor, had resulted in a substantial volume of asbestos litigation in which plaintiffs alleged personal injury or death as a result of exposure to asbestos fibers. On the GST Petition Date, GST filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. These filings were the initial step in a claims resolution process for an efficient and permanent resolution of 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. The filings on the GST Petition Date did not include EnPro Industries, Inc. or any other EnPro Industries, Inc. operating subsidiary. GST LLC is one of the businesses in our broader Garlock group and, prior to the GST Petition Date, was included in our Sealing Products segment. GST LLC and its subsidiaries operate five manufacturing facilities, including operations in Palmyra, New York and Houston, Texas. The financial results of GST and subsidiaries were included in our consolidated results through June 4, 2010, the day prior to the GST Petition Date. However, GAAP requires an entity that files for protection under the U.S. Bankruptcy Code, whether solvent or insolvent, whose financial statements were previously consolidated with those of its parent, as GST’s and its subsidiaries’ were with ours, generally must be prospectively deconsolidated from the parent and the investment accounted for using the cost method. At deconsolidation, our investment was recorded at its estimated fair value as of June 4, 2010, resulting in a gain for reporting purposes. The cost method required us to present our ownership interests in the net assets of GST at the GST Petition Date as an investment and we did not recognize any income or loss from GST and subsidiaries in our results of operations until the reconsolidation of these subsidiaries upon consummation of a plan of reorganization under these proceedings. 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 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 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. 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, 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. As discussed in Note 1 , “Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance-Basis of Presentation,” 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”). Pursuant to the Joint Plan, a claims resolution trust (the “Trust”) was established prior to the Joint Plan Effective Date. As contemplated by the Joint Plan, the Trust was funded with cash contributions by GST LLC and Garrison and by OldCo and by the contribution OldCo of 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 (which included the right of OldCo to call the Option for payment of $20 million ), and by the obligations under the Joint Plan of OldCo and of GST LLC and Garrison to make specified deferred contribution 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 deferred cash 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 . In a final settlement of amounts owed to the Trust, a further payment of approximately $0.5 million was made in August 2018. The Consensual Settlement included as a condition to our obligations to proceed with the settlement that EnPro, Coltec, GST and Garlock of Canada Ltd (an indirect subsidiary of GST LLC) enter into a written agreement, to be consummated concurrently with the consummation of the Joint Plan on the Joint Plan Effective Date, with the Provincial Boards resolving remedies the Provincial Boards may possess against Garlock of Canada Ltd, GST, Coltec or any of their affiliates, including releases and covenants not to sue, for any present or future asbestos-related claim, and that the agreement is either approved by the Bankruptcy Court following notice to interested parties or the Bankruptcy Court concludes that its approval is not required. On November 11, 2016, we entered into such an agreement (the “Canadian Settlement”) with the Provincial Boards to resolve current and future claims against EnPro, GST, Garrison, Coltec, and Garlock of Canada Ltd for recovery of a portion of amounts the Provincial Boards have paid and will pay in the future under asbestos-injury recovery statutes in Canada for claims relating to asbestos-containing products. The Canadian Settlement provided for a cash settlement payment to the Provincial Boards on the fourth anniversary of the effective date of the Joint Plan, with the provincial Boards having the option of accelerating the payment discounted rate of 4.5% per annum. Prior to the Joint Plan Effective Date, the Provincial Boards provided notice of their election to accelerate the payment. After application of the discount resulting from such acceleration of payment, the settlement payment of approximately $16.7 million (U.S.) was made to the Provincial Boards on August 11, 2017. 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 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, has been dissolved. Reconsolidation The reconsolidation of GST and OldCo was treated as a business acquisition in accordance with applicable accounting rules. In accordance with GAAP, the purchase price for the acquisition was equal to the fair value of our investment in GST and OldCo on the reconsolidation date. In the reconsolidation, the investment in GST and OldCo was deemed to be exchanged for our exclusive control of these businesses. No cash was transferred in the reconsolidation transaction, other than the reconsolidation of GST's and OldCo's cash and cash equivalents at that date. The primary businesses comprising GST are managed as part of the Garlock division within our Sealing Products segment. Smaller businesses also reconsolidated with GST are managed by the Technetics and Stemco divisions within this segment, by the CPI division within our Engineered Products segment, and by the Fairbanks Morse division, which comprised our Power Systems segment classified as a discontinued operation in 2019. Post-reconsolidation sales of $76.1 million and income before taxes of $5.2 million attributable to GST and OldCo are included in our Consolidated Statement of Operations for the year ended December 31, 2017. The following unaudited supplemental pro forma condensed consolidated financial results of operations for the Company for the year ended December 31, 2017 is presented as if the reconsolidation had been completed prior to 2017: Years Ended December 31, 2017 ($ in millions, except per share amounts) Pro forma net sales $ 1,191.0 Pro forma net income from continuing operations $ 33.1 Pro forma earnings per share from continuing operations - basic $ 1.55 Pro forma earnings per share from continuing operations - diluted $ 1.52 The 2017 supplemental pro forma net income was adjusted to exclude $4.1 million of pre-tax nonrecurring expenses related to the fair value adjustment to acquisition date inventory. These expenses, the gain on reconsolidation, as well as the tax impact of the reconsolidation discussed in Note 5 , "Income Taxes" was adjusted to be included in prior years. The supplemental pro forma net income for the year ended December 31, 2017 was adjusted to exclude a combined $16.7 million of non-recurring credits associated with the aforementioned asbestos claims resolution process recorded at EnPro and at GST and OldCo, as the process is assumed to have concluded in order for the reconsolidation to occur. The amount adjusted for the year ended December 31, 2017 is inclusive of $24.7 million of credits for insurance reimbursements that became realizable for GST and OldCo in 2017. The remaining amount adjusted consists of charges for Chapter 11 case-related fees and expenses including attorneys' and experts' fees and fees associated with the administration of Garrison. These unaudited supplemental pro forma financial results have been prepared for comparative purposes only. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the reconsolidation occurred prior to 2017 or of future results of the consolidated entities. Associated with the reconsolidation of GST and OldCo, we recorded a pretax gain of $534.4 million . The amounts comprising the gain include: (in millions) Gain on revaluation of investment in GST and OldCo $ 248.3 Elimination of net amounts payable to GST and OldCo at reconsolidation date 286.1 Total $ 534.4 The gain on revaluation of our investment in GST and OldCo is the difference between the fair value of the investment and its book value as of the date of reconsolidation. The portion of the gain attributable to elimination of net amounts payable to GST and OldCo is based upon the balances in EnPro's amounts due to and from GST and OldCo as of that date, including the notes payable to GST and related accrued interest, income tax receivable from GST, and other payables to and receivables from GST that arose in the normal course of business. Related Party Transactions On the GST Petition Date, GST commenced an asbestos claims resolution process under Chapter 11 of the United States Bankruptcy Code. The resulting deconsolidation of GST from our financial results required the interest expense related to certain intercompany indebtedness to be reflected on our Consolidated Statements of Operations. Additionally, we regularly transacted business with GST through the purchase and sale of products while it was not consolidated in EnPro's financial statements. Amounts included in our consolidated financial statements arising from transactions with GST during the periods which they were not consolidated in our results include the following: Consolidated Statements of Operations Caption Seven Months Ended July 30, 2017 Description (in millions) Sales to GST Net sales $ 18.8 Purchases from GST Cost of sales $ 12.2 Interest expense to GST Interest expense $ 20.6 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 21. Commitments and Contingencies General A description of certain 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 19 sites. At 17 of these sites the future cost per site for us or our subsidiary is expected to exceed $100 thousand . Of these 19 sites, 17 are sites where we or one or more of our subsidiaries formerly conducted business operations but no longer do, and 2 are sites where we conduct manufacturing operations. Investigations have been completed for 16 sites and are in progress at the other 3 sites. Our costs at 14 of the 19 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 remediation of contaminated sites. Liabilities are established for all sites based on these factors. As assessments and remediation progress at individual sites, these liabilities are reviewed periodically and adjusted to reflect additional technical data and legal information. As of December 31, 2019 and 2018 , we had accrued liabilities of $36.0 million and $30.6 million , respectively, for estimated future expenditures relating to environmental contingencies. In 2019, in addition to the accruals described below, we accrued $0.8 million in liabilities to reflect our most current estimate of costs for continued remediation at two sites based upon a reassessment of the expected duration of remedial activities at each of those sites. These amounts have been recorded on an undiscounted basis in the Consolidated Balance Sheets. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other parties potentially being liable, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. 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 19 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 predecessor of our EnPro Holdings subsidiary when it sold a majority interest in Crucible Materials Corporation (the successor of Crucible) in 1985. The United States Environmental Protection Agency (the “EPA”) notified our subsidiary 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. EnPro Holdings 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. In September 2018, EnPro Holdings withdrew from the Cooperating Parties Group but remain a party to the May 2007 Administrative Order on Consent. 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"). 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 total costs, with no estimate within the range being a better estimate than the minimum. Since 2016, we incurred $0.7 million in costs related to this matter. Our future remediation costs could be significantly greater than the $2.8 million we have accrued at December 31, 2019 . 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, which is included in the 19 sites referred to above. Crucible operated a steel mill facility adjacent to Onondaga Lake from 1911 to 1983 that was alleged by government agencies to have contributed to the need for environmental response actions at the Onondaga site. Honeywell International Inc. (“Honeywell”), which has undertaken certain remediation activities at the Onondaga Site under the supervision of NYSDEC and the EPA, asserted claims against EnPro Holdings related to investigation and remediation at the Onondaga Site. After continued discussions with Honeywell, an agreement was reached to settle Honeywell's claim for $10.0 million in exchange for a full release of any and all claims based on Crucible's alleged contamination of Onondaga Lake. In light of this settlement, for the third quarter of 2019, we increased our reserve for this matter by $3.5 million , to reflect an aggregate reserve of $10.0 million . The settlement was finalized on January 24, 2020 and payment of the full settlement amount of $10.0 million was made on February 14, 2020. Except with respect to specific Crucible environmental matters for which we have accrued a portion of the liability set forth above, including the Lower Passaic River Study Area and the Onondaga site, we are unable to estimate a reasonably possible range of loss related to any other contingent environmental liability based on our prior ownership of Crucible. 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, EnPro Holdings received a notice from the EPA dated February 19, 2014 asserting that EnPro Holdings 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, EnPro Holdings received another notice from the EPA asserting that it 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 for the performance of this work. 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 anticipated to be completed by the end of 2020. In the fourth quarter of 2018, we increased the reserve by $1.0 million for the estimated reimbursement of the EPA's costs to oversee these investigations. The balance in the reserve as of December 31, 2019 is $2.1 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 EnPro Holdings located in Water Valley, Mississippi, which was divested to BorgWarner, Inc. ("BorgWarner") in 1996, EnPro Holdings has 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 Holdings 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 developed an alternate remedial approach which has been approved 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 at the plant has been completed and corrective action consisting of a permanent vapor intrusion remediation system became operational in May 2017 with further improvements made to the system in December 2017 and January 2018. Indoor air sampling is conducted at four locations quarterly and results have been below levels requiring responsive action at three sampling locations since June 2017 and at all four locations since February 2018. 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 implementing 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. In the fourth quarter of 2018, we reserved an additional $3.5 million for additional remediation, long-term monitoring costs and legal fees to support regulatory compliance for the above noted activities. On April 7, 2017, the State of Mississippi through its Attorney General filed suit against EnPro Holdings and Goodrich Corporation (EnPro's former corporate parent), 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 are aggressively defending 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. On January 31, 2019, some of these property owners (representing ownership of 27 residential, agricultural or commercial properties), Yalobusha County, and the Board of Trustees of the Yalobusha General Hospital filed suit against EnPro and Goodrich in Mississippi Circuit Court and Yalobusha County seeking recovery for alleged damage to their properties, including diminution in value, from groundwater contamination that had come onto their properties. In October 2019, the claims of the property owners (representing ownership of the 27 residential, agricultural and commercial properties) were settled for current and estimated future payments of $3.0 million in the aggregate. In December 2019, the claims of Yalobusha County and the Board of Trustees of the Yalobusha County General Hospital were settled for a payment of $4.5 million , which was paid in the first quarter of 2020. In exchange for these payments, both cases have been dismissed with prejudice, each plaintiff has released any and all claims that were or could have been brought against EnPro, and each property owner will file in the real property records of Yalobusha County, Mississippi, a deed restriction required by MDEQ as part of EnPro's required remediation. In light of the settlement of the County lawsuit, and installation and operation of additional remediation systems, for the fourth quarter of 2019, we further increased our reserve for this matter, including the remediation matters described above, by $4.7 million to reflect an aggregate reserve of $9.2 million at December 31, 2019. Beyond this increase, we cannot estimate a reasonably possible range of loss from the remaining lawsuits or any potential additional legal actions at this time. Based upon limited information regarding any incremental remediation or other actions that may be required at the site, we cannot estimate a minimum loss or a reasonably possible range of loss related to this matter. In 2019, in addition to the accruals described above, we accrued $0.8 million in liabilities to reflect our estimated costs to reflect our most current estimate of costs for continued remediation at two sites based upon a reassessment of the expected duration of remedial activities at each of those sites. As of December 31, 2019 and 2018 , we had accrued liabilities of $36.0 million and $30.6 million , respectively, for estimated future expenditures relating to environmental contingencies. Given the uncertainties regarding the status of laws, regulations, enforcement policies, the impact of other parties potentially being liable, technology and information related to individual sites, we do not believe it is possible to develop an estimate of the range of reasonably possible environmental loss in excess of our recorded liabilities. In addition, based on our prior ownership of Crucible, we may have additional contingent liabilities in one or more significant environmental matters, which are included in the 19 sites referred to above. Except with respect to specific Crucible environmental matters for which we have accrued a portion of the liability set forth above, we are unable to estimate a reasonably possible range of loss related to these contingent liabilities. 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 based upon a review of historical warranty experience and information regarding the number, nature, and dollar valuation of specific warranty claims being made by customers. 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 years ended December 31, 2019 , 2018 and 2017 are as follows: 2019 2018 2017 (in millions) Balance at beginning of year $ 9.4 $ 2.7 $ 2.5 Charges to expense 5.8 10.1 2.5 Settlements made (5.1 ) (3.4 ) (2.3 ) Balance at end of year $ 10.1 $ 9.4 $ 2.7 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 65% to GGB and 35% to BorgWarner. 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. 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 briefed their legal positions and court hearings concluded in late 2019. A court ruling is expected in the second quarter of 2020. 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 Under the Consensual Settlement and Joint Plan described above in Note 20 , "Subsidiary Asbestos Bankruptcies,", GST and EnPro Holdings 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. These policies include a number of primary and excess general liability insurance policies that were purchased by EnPro Holdings 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 EnPro Holdings and certain of its subsidiaries. Asbestos claims against GST are not covered under these policies because GST was not a subsidiary of EnPro Holdings prior to 1976. The Joint Plan provides that EnPro Holdings may retain the first $25 million of any settlements and judgments collected for non-GST asbestos claims related to insurance policies in the Pre-Garlock Coverage Block and EnPro Holdings and the Trust will share equally in any settlements and judgments EnPro Holdings may collect in excess of $25 million . To date, EnPro Holdings has collected almost $22 million in settlements for non-GST asbestos claims from the Pre-Garlock Coverage Block and anticipates further collections once the Trust begins making claims payments. At December 31, 2019 , approximately $6.7 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, including contributions to the Trust. We consider such amount of available insurance coverage under the Garlock Coverage Block to be of high quality because the insurance policies are written or guaranteed by U.S.-based carriers whose credit rating by S&P is investment grade (BBB-) or better, and whose AM Best rating is excellent (A-) or better. The remaining $6.7 million is available to pending and estimated future claims. There are specific agreements in place with carriers regarding the remaining available coverage. Based on those agreements and the terms of the policies in place and prior decisions concerning coverage, we believe that all of the $6.7 million of insurance proceeds will ultimately be collected, although there can be no assurance that the insurance companies will make the payments as and when due. Assuming the insurers pay according to the agreements and policies, we anticipate that $6.7 million will be collected in 2020. We also believe that EnPro Holdings will bill, and could collect over time, as much as $10 million of insurance coverage for non-GST asbestos claims to reimburse it for Trust payments to non-GST Trust claimants. After EnPro Holdings collects the first approximately $3 million of that coverage, remaining collections for non-GST asbestos claims from the Pre-Garlock Coverage Block will be shared equally with the Trust. GST LLC has received $8.8 million of insurance recoveries from insolvent carriers since 2007 and may receive additional payments from insolvent carriers in the future. No anticipated insolvent carrier collections are included in the $6.7 million of anticipated collections. The insurance available to cover current and future asbestos claims is from comprehensive general liability policies that cover EnPro Holdings and certain of its other subsidiaries in addition to GST for periods prior to 1985 and therefore could be subject to potential competing claims of other covered subsidiaries and their assignees. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | 22. Selected Quarterly Financial Data (Unaudited) First Quarter Second Quarter Third Quarter Fourth Quarter (in millions, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018 Net sales $ 303.0 $ 316.7 $ 317.2 $ 340.0 $ 299.0 $ 326.7 $ 286.5 $ 290.7 Gross profit $ 99.5 $ 112.4 $ 108.5 $ 106.9 $ 97.7 $ 109.5 $ 98.1 $ 89.7 Income (loss) from continuing operations $ 7.8 $ 9.2 $ 16.6 $ 8.8 $ (8.4 ) $ 17.1 $ (8.2 ) $ (39.8 ) Income from discontinued operations, net of tax $ 5.3 $ 3.4 $ 7.3 $ 1.1 $ 6.9 $ 7.1 $ 11.0 $ 12.7 Net income (loss) $ 13.1 $ 12.6 $ 23.9 $ 9.9 $ (1.5 ) $ 24.2 $ 2.8 $ (27.1 ) Basic earnings (loss) per share: Continuing operations $ 0.37 $ 0.43 $ 0.81 $ 0.42 $ (0.41 ) $ 0.83 $ (0.40 ) $ (1.92 ) Discontinued operations 0.26 0.16 0.35 0.05 0.33 0.34 0.54 0.61 Net income (loss) per share $ 0.63 $ 0.59 $ 1.16 $ 0.47 $ (0.08 ) $ 1.17 $ 0.14 $ (1.31 ) Diluted earnings (loss) per share: Continuing operations $ 0.37 $ 0.42 $ 0.80 $ 0.42 $ (0.41 ) $ 0.82 $ (0.40 ) $ (1.92 ) Discontinued operations 0.26 0.16 0.35 0.05 0.33 0.34 0.54 0.61 Net income (loss) per share $ 0.63 $ 0.58 $ 1.15 $ 0.47 $ (0.08 ) $ 1.16 $ 0.14 $ (1.31 ) |
SCHEDULE II - Valuation and Qua
SCHEDULE II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - Valuation and Qualifying Accounts | SCHEDULE II Valuation and Qualifying Accounts For the Years Ended December 31, 2019 , 2018 and 2017 (in millions) Allowance for Doubtful Accounts Balance, Beginning of Year Charge (credit) to Expense Write-off of Receivables Other (1) Balance, End of Year 2019 $ 3.3 $ 0.8 $ (0.1 ) $ (0.3 ) $ 3.7 2018 $ 4.2 $ (0.6 ) $ (0.4 ) $ 0.1 $ 3.3 2017 $ 4.7 $ 0.9 $ (1.6 ) $ 0.2 $ 4.2 (1) Consists primarily of the effect of changes in currency rates. Deferred Income Tax Valuation Allowance Balance, Beginning of Year Charge (credit) to Expense Expiration of Net Operating Losses Other (2) Balance, End of Year 2019 $ 23.9 $ (15.3 ) $ — $ (0.7 ) $ 7.9 2018 $ 25.7 $ (1.4 ) $ — $ (0.4 ) $ 23.9 2017 $ 20.2 $ 1.2 $ (0.1 ) $ 4.4 $ 25.7 (2) Consists primarily of the effects of changes in currency rates and statutory changes in tax rates. |
Overview, Basis of Presentati_2
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition | Revenue Recognition – The largest stream of revenue is product revenue for shipments of the various products discussed further in Note 19 , "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. |
Redeemable Non-Controlling Interests | Redeemable Non-Controlling Interests – Non-controlling interests in subsidiaries that are redeemable for cash or other assets outside of the our control are classified as mezzanine equity, outside of equity and liabilities, at the greater of the carrying value or the redemption value. The increases or decreases in the estimated redemption amount are recorded with corresponding adjustments against equity and are reflected in the computation of earnings per share. |
Foreign Currency Translation | Foreign Currency Translation |
Research and Development Expense | Research and Development Expense |
Income Taxes | Income Taxes – We use the asset and liability method of accounting for income taxes. Temporary differences arising between the tax basis of an asset or liability and its carrying amount on the Consolidated Balance Sheet are used to calculate future income tax assets or liabilities. This method also requires the recognition of deferred tax benefits, such as net operating loss carryforwards. Valuation allowances are recorded as appropriate to reduce deferred tax assets to the amount considered likely to be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to the taxable income (losses) in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the date of enactment of the change. A tax benefit from an uncertain tax position is recognized only if we believe it is more likely than not that the position will be sustained on its technical merits. If the recognition threshold for the tax position is met, only the portion of the tax benefit that we believe is greater than 50 percent likely to be realized is recorded. On December 22, 2017, the Tax Act was enacted and contains several key tax provisions that impacted us, including the reduction of the corporate 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. We recognized the provisional impact of these tax law changes, including the remeasurement of our deferred tax assets and liabilities based on the tax rates in effect at the time the deferred balances are expected to reverse, the reassessment of the net realizability of the deferred tax balances, and the transition tax, in our income tax provision in the fourth quarter 2017, the period of enactment. While the Tax Act provides for a territorial tax system, it includes the global intangible low-taxed income (“GILTI”) provision beginning in 2018. The GILTI provisions require us to include in our U.S. income tax return certain current foreign subsidiary earnings net of foreign tax credits, subject to limitation. We elected to account for the GILTI tax in the period in which it is incurred. In December 2017, 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 it was enacted. In these instances, the SEC's guidance allowed the recording of provisional amounts during a measurement period not to extend beyond one year of the enactment date. As the Tax Act was enacted at the end of 2017, and ongoing guidance and interpretation has been issued over the ensuing twelve months, we considered the impact of the transition tax, remeasurement of deferred tax assets and liabilities, and other items recorded in our year-end income tax provision for the fourth quarter 2017 to be a provisional estimate and have further analyzed the year-end data and refined our calculations. The refinements to our provisional estimate were made in the third and fourth quarters of 2018 and we completed our accounting for the impact in the fourth quarter of 2018. Please see Note 5 , "Income Taxes," for further information. |
Cash and Cash Equivalents | Cash and Cash Equivalents – Cash and cash equivalents include cash on hand, demand deposits and highly liquid investments with a maturity of three months or less at the time of purchase. |
Receivables | Receivables – Accounts receivable are stated at the historical carrying amount net of write-offs and allowance for doubtful accounts. We establish an allowance for doubtful accounts receivable based on historical experience and any specific customer collection issues we have identified. Doubtful accounts receivable are written off when a settlement is reached for an amount less than the outstanding historical balance or when we have determined the balance will not be collected. |
Inventories | Inventories |
Property, Plant and Equipment | Property, Plant and Equipment – Property, plant and equipment are recorded at cost. Depreciation of plant and equipment is determined on the straight-line method over the following estimated useful lives of the assets: buildings and improvements, 5 to 25 years; machinery and equipment, 3 to 10 years. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets – Goodwill represents the excess of the purchase price over the estimated fair value of the net assets of acquired businesses. Goodwill is not amortized, but instead is subject to annual impairment testing conducted each year as of October 1. The goodwill asset impairment test involves comparing the fair value of a reporting unit to its carrying amount. If the carrying amount of a reporting unit exceeds its fair value, a second step of comparing the implied fair value of the reporting unit’s goodwill to the carrying amount of that goodwill is required to measure the potential goodwill impairment loss. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount. We completed our required annual impairment tests of goodwill as of October 1, 2019 , 2018 and 2017 . These assessments did not indicate any impairment of the goodwill, and the fair values of each of our reporting units significantly exceeded their carrying values. Other intangible assets are recorded at cost, or when acquired as a part of a business combination, at estimated fair value. These assets include customer relationships, patents and other technology agreements, trademarks, licenses and non-compete agreements. Intangible assets that have definite lives are amortized using a method that reflects the pattern in which the economic benefits of the assets are consumed or the straight-line method over estimated useful lives of 2 to 21 years. Intangible assets with indefinite lives are subject to at least annual impairment testing, conducted each year as of October 1, which compares the fair value of the intangible asset with its carrying amount using the relief from royalty method. Interim tests may be required if an event occurs or circumstances change that would more likely than not reduce the fair value below the carrying value or change the useful life of the asset. Based upon our analysis, we determined our indefinite-lived Motorwheel trade name was impaired at December 31, 2019. We recorded a $7.9 million impairment charge and recorded the trade name at $2.1 million on our Consolidated Balance Sheet at December 31, 2019, which represents the fair-value of the asset. |
Debt | Debt – Debt issuance costs associated with our senior secured revolving credit facility are presented as an asset and subsequently amortized into interest expense ratably over the term of the revolving debt arrangement. Debt issuance costs associated with any of our other debt instruments that are incremental third party costs of issuing the debt are recognized as a reduction in the carrying value of the debt and amortized into interest expense over the time period to maturity using the interest method. |
Derivative Instruments | Derivative Instruments – We use derivative financial instruments to manage our exposure to various risks. The use of these financial instruments modifies the exposure with the intent of reducing our risk. We do not use financial instruments for trading purposes, nor do we use leveraged financial instruments. The counterparties to these contractual arrangements are major financial institutions. We use multiple financial institutions for derivative contracts to minimize the concentration of credit risk. The current accounting rules require derivative instruments, excluding certain contracts that are issued and held by a reporting entity that are both indexed to its own stock and classified in shareholders’ equity, be reported in the Consolidated Balance Sheets at fair value and that changes in a derivative’s fair value be recognized currently in earnings unless specific hedge accounting criteria are met. |
Fair Value Measurements | Fair Value Measurements – Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect our own assumptions. The fair value of intangible assets associated with acquisitions is determined using a discounted cash flow analysis. Projecting discounted future cash flows requires us to make significant estimates regarding future revenues and expenses, projected capital expenditures, changes in working capital, tax rates, attrition rates, and the appropriate discount rate. This non-recurring fair value measurement would be classified as Level 3 due to the absence of quoted market prices or observable inputs for assets of a similar nature. We review the carrying amounts of long-lived assets when certain events or changes in circumstances indicate that the carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of the asset group is not recoverable and exceeds its fair value. We estimate the fair values of assets subject to long-lived asset impairment based on our own judgments about the assumptions that market participants would use in pricing the assets. In doing so, we use an market approach when available or income approach based upon discounted cash flows. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, projected growth rates, discount rates, and royalty rates for certain intangible assets. We classify these fair value measurements as Level 3. Similarly, the fair value computations for the recurring impairment analyses of goodwill and indefinite-lived intangible assets would be classified as Level 3 due to the absence of quoted market prices or observable inputs. The key assumptions used for the discounted cash flow approach include expected cash flows based on internal business plans, projected growth rates, discount rates, and royalty rates for certain indefinite-lived intangible assets. Significant changes in any of those inputs could result in a significantly different fair value measurement. |
Pensions and Postretirement Benefits | Pensions and Postretirement Benefits - Amortization of the net gain or loss resulting from experience different from that assumed and from changes in assumptions is included as a component of benefit cost. If, as of the beginning of the year, that net gain or loss exceeds 10% of the greater of the projected benefit obligation or the market-related value of plan assets, the amortization is that excess divided by the average remaining service period of participating employees expected to receive benefits under the plan. We amortize prior service cost using the straight-line basis over the average future service life of active participants. For segment reporting purposes, we allocate service cost to each location generating those costs. All other components of net periodic pension cost are reported in other (non-operating) expense. |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance In December 2019, a standard was issued that will simplify the accounting for income taxes in nine unrelated areas. The standard is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. We are currently evaluating the new guidance to determine the impact it will have on our consolidated financial statements. 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. 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. Based upon our current population of receivables at December 31, 2019 and our 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. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | For 2019, 2018, and 2017, results of operations from Fairbanks Morse were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Net sales $ 284.2 $ 257.9 $ 208.2 Cost of sales 216.9 197.4 149.3 Gross profit 67.3 60.5 58.9 Operating expenses: Selling, general, and administrative expenses 28.2 28.8 27.4 Other 0.8 0.2 — Total operating expenses 29.0 29.0 27.4 Income from discontinued operations before income taxes 38.3 31.5 31.5 Income tax expense (7.8 ) (7.2 ) (9.6 ) Income from discontinued operations, net of taxes $ 30.5 $ 24.3 $ 21.9 The major classes of assets and liabilities for Fairbanks Morse are shown below: As of December 31, 2019 2018 (in millions) Assets: Accounts receivable $ 107.8 $ 122.9 Inventories 60.2 58.9 Prepaid expenses and other current assets 6.6 4.4 Total current assets of discontinued operations 174.6 186.2 Property, plant, and equipment 63.0 66.9 Goodwill 11.8 11.6 Other assets 4.7 1.4 Total assets of discontinued operations $ 254.1 $ 266.1 Liabilities: Accounts payable $ 36.9 $ 42.9 Accrued expenses 48.2 18.3 Total current liabilities of discontinued operations 85.1 61.2 Other liabilities 4.4 5.8 Total liabilities of discontinued operations $ 89.5 $ 67.0 |
Acquisitions and Dispositions A
Acquisitions and Dispositions Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions and Divestitures [Abstract] | |
Business Combination, Segment Allocation | The following table represents the preliminary purchase price allocations: (in millions) Accounts receivable $ 7.5 Property, plant and equipment 7.5 Goodwill 159.0 Other intangible assets 214.2 Other assets 17.4 Deferred income taxes (50.1 ) Liabilities assumed (17.0 ) Redeemable non-controlling interest (28.0 ) $ 310.5 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma condensed consolidated financial results of operations for the years ended December 31, 2019, 2018, and 2017 are presented as if these two acquisitions had been completed on January 1, 2017: Years Ended December 31, 2019 2018 2017 (in millions) Pro forma net sales $ 1,234.7 $ 1,312.7 $ 1,131.2 Pro forma net income (loss) from continuing operations 9.4 (11.5 ) 499.5 |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserves | Restructuring reserves at December 31, 2019 , as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ — $ 5.1 $ (3.7 ) $ 1.4 Facility relocation and closure costs 1.0 1.2 (2.2 ) — $ 1.0 $ 6.3 $ (5.9 ) $ 1.4 Also included in restructuring costs for 2019 were asset write-downs, net of gains, of approximately $28.8 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2018 , as well as activity during the year, consisted of: Balance Provision Payments Balance (in millions) Personnel-related costs $ 0.7 $ 6.7 $ (7.4 ) $ — Facility relocation and closure costs 1.2 1.3 (1.5 ) 1.0 $ 1.9 $ 8.0 $ (8.9 ) $ 1.0 Also included in restructuring costs for 2018 were asset write-downs of approximately $14.2 million that did not affect the restructuring reserve liability. Restructuring reserves at December 31, 2017 , as well as activity during the year, consisted of: Balance, December 31, 2016 Provision Payments Balance (in millions) Personnel-related costs $ 3.5 $ 2.5 $ (5.3 ) $ 0.7 Facility relocation and closure costs 1.6 0.6 (1.0 ) 1.2 $ 5.1 $ 3.1 $ (6.3 ) $ 1.9 |
Schedule of Restructuring Costs By Reportable Segment | Restructuring costs by reportable segment are as follows: Years Ended December 31, 2019 2018 2017 (in millions) Sealing Products $ 32.3 $ 21.4 $ 3.6 Engineered Products 2.1 0.7 1.5 Corporate 0.7 0.1 — $ 35.1 $ 22.2 $ 5.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Tax Domestic and Foreign | Income (loss) from continuing operations before income taxes as shown in the Consolidated Statements of Operations consists of the following: Years Ended December 31, 2019 2018 2017 (in millions) Domestic $ (67.3 ) $ (75.3 ) $ 493.9 Foreign 71.6 90.4 52.1 Total $ 4.3 $ 15.1 $ 546.0 |
Summary of Income Tax Expense in Consolidated Statements of Operations From Continuing Operations | A summary of income tax expense (benefit) from continuing operations in the Consolidated Statements of Operations is as follows: Years Ended December 31, 2019 2018 2017 (in millions) Current: Federal $ (1.4 ) $ (4.3 ) $ (26.4 ) Foreign 24.9 22.8 17.2 State 1.3 (0.3 ) 0.9 24.8 18.2 (8.3 ) Deferred: Federal (6.4 ) (5.2 ) 14.9 Foreign (19.5 ) 1.4 17.1 State (2.4 ) 5.4 4.4 (28.3 ) 1.6 36.4 Total $ (3.5 ) $ 19.8 $ 28.1 |
Schedule of Deferred Income Tax Assets and Liabilities | Significant components of deferred income tax assets and liabilities at December 31, 2019 and 2018 are as follows: 2019 2018 (in millions) Deferred income tax assets: Net operating losses and tax credits $ 34.8 $ 43.4 Postretirement benefits other than pensions 2.1 2.1 Environmental reserves 8.6 7.5 Retained liabilities of previously owned businesses 1.0 1.1 Accruals and reserves 6.5 9.1 Operating leases 10.9 — Pension obligations 1.9 0.9 Inventories 6.2 4.2 Interest 17.8 11.4 Compensation and benefits 7.3 7.7 Gross deferred income tax assets 97.1 87.4 Valuation allowance (7.9 ) (23.9 ) Total deferred income tax assets 89.2 63.5 Deferred income tax liabilities: Depreciation and amortization (120.8 ) (85.9 ) Operating leases (10.9 ) — Cross currency swap (2.9 ) (1.2 ) Joint ventures (0.3 ) (0.3 ) Total deferred income tax liabilities (134.9 ) (87.4 ) Net deferred tax liabilities $ (45.7 ) $ (23.9 ) The net deferred tax assets (liabilities) are reflected on a jurisdictional basis on the December 31, 2019 and 2018 Consolidated Balance Sheets as follows: 2019 2018 (in millions) Other assets (non-current) $ 25.5 $ 11.0 Deferred taxes and non-current income taxes payable (71.2 ) (34.9 ) Net deferred tax liabilities $ (45.7 ) $ (23.9 ) |
Reconciliation of Effective Tax Rate | The effective income tax rate from operations varied from the statutory federal income tax rate as follows: Percent of Pretax Income Years Ended December 31, 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % U.S. taxation of foreign profits, net of foreign tax credits 3.3 1.1 0.6 Research and employment tax credits (17.2 ) (7.7 ) (0.2 ) State and local taxes (22.4 ) 25.5 0.4 Foreign tax rate differences 152.3 27.8 (0.8 ) Statutory changes in tax rates 17.8 (1.1 ) (0.2 ) Valuation allowance (349.2 ) (6.3 ) 0.2 Changes in uncertain tax positions (9.0 ) 9.9 — Nondeductible expenses 57.3 5.7 0.2 Gain on reconsolidation of GST and OldCo — — (34.3 ) Reconsolidation step-up of net assets of GST and OldCo to fair value — — 7.9 GILTI and FDII 54.8 10.4 — Other Tax Act items — 48.2 (4.4 ) Other items, net 12.0 (3.1 ) 0.7 Effective income tax rate (79.3 )% 131.4 % 5.1 % |
Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the gross unrecognized tax benefits (excluding interest) is as follows: (in millions) 2019 2018 2017 Balance at beginning of year $ 2.9 $ 3.8 $ 2.8 Reconsolidation of GST and OldCo — — 0.2 Additions based on tax positions related to the current year 1.2 0.2 0.3 Additions for tax positions of prior years 7.2 — 1.1 Reductions as a result of a lapse in the statute of limitations (1.2 ) (0.1 ) (0.3 ) Reductions as a result of audit settlements — (1.0 ) (0.3 ) Balance at end of year $ 10.1 $ 2.9 $ 3.8 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share for calendar years 2019, 2018, and 2017 is as follows (in millions, except per share data): 2019 2018 2017 Numerator (basic and diluted): Income (loss) from continuing operations $ 7.8 $ (4.7 ) $ 517.9 Income from discontinued operations 30.5 24.3 21.9 Net income $ 38.3 $ 19.6 $ 539.8 Denominator: Weighted-average shares – basic 20.7 20.9 21.3 Share-based awards 0.1 — 0.5 Weighted-average shares – diluted 20.8 20.9 21.8 Basic earnings (loss) per share: Continuing operations $ 0.38 $ (0.22 ) $ 24.25 Discontinued operations 1.48 1.16 1.03 Net income per share $ 1.86 $ 0.94 $ 25.28 Diluted earnings (loss) per share: Continuing operations $ 0.38 $ (0.22 ) $ 23.76 Discontinued operations 1.47 1.16 1.00 Net income per share $ 1.85 $ 0.94 $ 24.76 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of December 31, 2019 2018 (in millions) Finished products $ 80.6 $ 88.4 Work in process 23.7 21.1 Raw materials and supplies 56.1 67.6 160.4 177.1 Reserve to reduce certain inventories to LIFO basis (3.3 ) (2.9 ) Total inventories $ 157.1 $ 174.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | As of December 31, 2019 2018 (in millions) Land $ 13.6 $ 13.3 Buildings and improvements 123.6 129.2 Machinery and equipment 341.8 352.1 Construction in progress 17.7 21.0 496.7 515.6 Less accumulated depreciation (277.9 ) (281.3 ) Total $ 218.8 $ 234.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment | The changes in the net carrying value of goodwill by reportable segment for the years ended December 31, 2019 and 2018 are as follows: Sealing Products Engineered Products Total (in millions) Goodwill as of December 31, 2017 $ 313.2 $ 10.9 $ 324.1 Foreign currency translation (1.9 ) (0.1 ) (2.0 ) Goodwill as of December 31, 2018 311.3 10.8 322.1 Foreign currency translation 5.4 0.1 5.5 Acquisitions 159.0 — 159.0 Dispositions (1.3 ) — (1.3 ) Goodwill as of December 31, 2019 $ 474.4 $ 10.9 $ 485.3 |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets are as follows: As of December 31, 2019 As of December 31, 2018 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization (in millions) Amortized: Customer relationships $ 470.1 $ 166.2 $ 284.5 $ 150.2 Existing technology 117.5 50.8 112.3 45.1 Trademarks 39.4 24.1 35.3 23.1 Other 33.6 24.0 28.3 23.8 660.6 265.1 460.4 242.2 Indefinite-Lived: Trademarks 71.4 — 79.1 — Total $ 732.0 $ 265.1 $ 539.5 $ 242.2 |
Schedule of Estimated Amortization Expense of Intangible Assets | The estimated amortization expense for definite-lived (amortized) intangible assets for the next five years is as follows (in millions): 2020 $ 34.8 2021 $ 31.9 2022 $ 30.2 2023 $ 29.2 2024 $ 27.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Right of Use Assets and Liabilities | Our right of use assets and liabilities related to operating leases as of December 31, 2019 are as follows: Balance Sheet Classification December 31, (in millions) Right-of-use assets Other assets $ 37.5 Current liability Accrued expenses $ 9.3 Long-term liability Other liabilities 28.4 Total liability $ 37.7 |
Maturities of Operating Lease Liabilities | A maturity analysis of undiscounted operating lease liabilities is shown in the table below: Operating Lease Payments (in millions) 2020 $ 10.6 2021 7.9 2022 5.7 2023 5.1 2024 3.8 Thereafter 9.2 Total lease payments 42.3 Less: interest (4.6 ) Present value of lease liabilities $ 37.7 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | As of December 31, 2019 2018 (in millions) Salaries, wages and employee benefits $ 43.7 $ 53.6 Interest 5.1 4.9 Environmental 25.2 16.4 Warranty 4.1 8.9 Income and other taxes 22.6 21.2 Operating lease liability 9.3 — Other 27.3 27.0 $ 137.3 $ 132.0 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | As of December 31, 2019 2018 (in millions) Senior notes $ 345.3 $ 344.9 Revolving debt 133.9 116.7 Term loan facility 149.1 — Other notes payable 1.0 3.3 629.3 464.9 Less current maturities of long-term debt 4.1 2.4 $ 625.2 $ 462.5 |
Schedule of Future Principal Payments on Long Term Debt | Future principal payments on long-term debt are as follows: (in millions) 2020 $ 4.1 2021 4.1 2022 4.8 2023 7.6 2024 263.3 Thereafter 350.1 $ 634.0 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized as follows: Fair Value Measurements as of December 31, 2019 December 31, 2018 (in millions) Assets Time deposits $ 22.9 $ 33.4 Foreign currency derivatives 12.3 4.5 Deferred compensation assets 10.9 8.6 $ 46.1 $ 46.5 Liabilities Deferred compensation liabilities $ 11.3 $ 8.9 Foreign currency derivatives 0.6 — $ 11.9 $ 8.9 |
Schedule of Carrying Value of Financial Instruments | The carrying values of our significant financial instruments reflected in the Consolidated Balance Sheets approximate their respective fair values, except for the following: December 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value (in millions) Long-term debt $ 629.3 $ 658.0 $ 464.9 $ 462.1 |
Pensions and Postretirement B_2
Pensions and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Change in Projected Benefit Obligations | The following table sets forth the changes in projected benefit obligations and plan assets of our defined benefit pension and other non-qualified and postretirement plans as of and for the years ended December 31, 2019 and 2018 . Pension Benefits Other Benefits 2019 2018 2019 2018 (in millions) Change in Projected Benefit Obligations Projected benefit obligations at beginning of year $ 276.8 $ 369.2 $ 4.1 $ 4.7 Service cost 4.4 4.8 0.1 0.1 Interest cost 12.2 12.8 0.1 0.1 Actuarial loss (gain) 46.6 (23.5 ) (0.2 ) (0.6 ) Settlements (0.3 ) (71.1 ) — — Benefits paid (10.8 ) (14.0 ) (0.5 ) (0.7 ) Other 0.6 (1.4 ) 0.4 0.5 Projected benefit obligations at end of year 329.5 276.8 4.0 4.1 |
Schedule of Change in Plan Assets | Change in Plan Assets Fair value of plan assets at beginning of year 267.6 350.7 Actual return on plan assets 56.5 (17.9 ) Administrative expenses (0.8 ) (0.9 ) Benefits paid (10.8 ) (14.0 ) Settlements (0.3 ) (71.1 ) Company contributions 1.3 20.8 Fair value of plan assets at end of year 313.5 267.6 |
Schedule of Change in Plan Assets Underfunded Status at End of Year | Underfunded Status at End of Year $ (16.0 ) $ (9.2 ) $ (4.0 ) $ (4.1 ) |
Schedule Of Projected Benefit Obligations Amounts Recognized In Consolidated Balance Sheets | Pension Benefits Other Benefits 2019 2018 2019 2018 (in millions) Amounts Recognized in the Consolidated Balance Sheets Long-term assets $ 1.7 $ 2.7 $ — $ — Current liabilities (0.6 ) (0.8 ) (0.2 ) (0.3 ) Current liabilities held for sale — — (0.7 ) — Long-term liabilities (17.1 ) (11.1 ) (3.1 ) (3.8 ) $ (16.0 ) $ (9.2 ) $ (4.0 ) $ (4.1 ) |
Schedule of Pre Tax Charges Recognized in Accumulated Other Comprehensive Income (Loss) | Pre-tax charges recognized in accumulated other comprehensive loss as of December 31, 2019 and 2018 consist of: Pension Benefits Other Benefits 2019 2018 2019 2018 (in millions) Net actuarial (gain) loss $ 60.0 $ 60.8 $ (1.0 ) $ (0.9 ) Prior service cost 1.4 1.1 — 0.2 $ 61.4 $ 61.9 $ (1.0 ) $ (0.7 ) |
Schedule Of Net Periodic Benefit Cost | The following table sets forth the components of net periodic benefit cost and other changes in plan assets and benefit obligations recognized in other comprehensive income for our defined benefit pension and other non-qualified and postretirement plans for the years ended December 31, 2019 , 2018 and 2017 . Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 (in millions) Net Periodic Benefit Cost Service cost $ 4.4 $ 4.8 $ 4.5 $ 0.1 $ 0.1 $ 0.1 Interest cost 12.2 12.8 12.9 0.1 0.1 0.1 Expected return on plan assets (15.7 ) (19.0 ) (20.1 ) — — — Amortization of prior service cost 0.2 0.3 0.3 0.2 0.1 0.1 Amortization of net loss 6.6 5.1 7.3 — — — Settlements — 12.7 — — — — Curtailments — — (0.1 ) — — — Deconsolidation of GST — — (0.3 ) — — — Net periodic benefit cost 7.7 16.7 4.5 0.4 0.3 0.3 |
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 (in millions) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Net loss (gain) 5.8 13.3 (5.8 ) (0.1 ) (0.6 ) 0.1 Prior service cost 0.5 — 0.5 — — — Amortization of net loss (6.6 ) (5.1 ) (7.3 ) — — — Amortization of prior service cost (0.2 ) (0.3 ) (0.3 ) (0.2 ) (0.1 ) (0.1 ) Settlements — (12.7 ) — — — — Total recognized in other comprehensive income (0.5 ) (4.8 ) (12.9 ) (0.3 ) (0.7 ) — Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income $ 7.2 $ 11.9 $ (8.4 ) $ 0.1 $ (0.4 ) $ 0.3 |
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost | Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 Discount rate 3.375 % 4.375 % 3.75 % 3.375 % 4.375 % 3.75 % Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 Discount rate 4.375 % 4.0 % 4.25 % 4.375 % 3.75 % 4.25 % Expected long-term return on plan assets 6.0 % 6.0 % 7.25 % — — — Rate of compensation increase 3.0 % 3.0 % 3.0 % 4.0 % 4.0 % 4.0 % |
Schedule of Assumed Health Care Cost Trend Rates | We use the Pri-2012 base mortality table with the MP-2019 projection scale to value our domestic pension liabilities. Assumed Health Care Cost Trend Rates at December 31 2019 2018 Health care cost trend rate assumed for next year 8.0 % 8.0 % Rate to which the cost trend rate is assumed to decline (the ultimate rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2027 2026 |
Schedule of Asset Allocation for Pension Plans and Target Allocation By Asset Category | The asset allocation for pension plans at the end of 2019 and 2018 , and the target allocation for 2020 , by asset category are as follows: Target Allocation Plan Assets at December 31, 2020 2019 2018 Asset Category Equity securities 30 % 29 % 27 % Fixed income 70 % 71 % 73 % 100 % 100 % 100 % |
Schedule of Fair Value of Plan Assets | The investment portfolios of the various funds at December 31, 2019 and 2018 are summarized as follows: 2019 2018 (in millions) Mutual funds – U.S. equity $ 55.7 $ 42.7 Mutual funds – international equity 35.9 29.5 Mutual funds - fixed income treasury and money market 221.1 194.6 Cash equivalents 0.8 0.8 $ 313.5 $ 267.6 |
Schedule of Benefit Payments Reflecting Expected Future Service as Appropriate Expected to Be Paid | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the following calendar years: Pension Benefits Other Benefits (in millions) 2020 $ 12.4 $ 0.2 2021 13.6 1.4 2022 14.6 0.3 2023 16.1 0.2 2024 17.3 0.2 Years 2025 – 2029 99.8 0.7 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive loss by component (after tax) are as follows: (in millions) Unrealized Translation Adjustments Pension and Other Postretirement Plans Total Balance at December 31, 2016 $ (21.2 ) $ (49.7 ) $ (70.9 ) Other comprehensive income before reclassifications 14.4 3.2 17.6 Amounts reclassified from accumulated other comprehensive loss — 4.9 4.9 Net current-period other comprehensive income 14.4 8.1 22.5 Balance at December 31, 2017 (6.8 ) (41.6 ) (48.4 ) Other comprehensive loss before reclassifications (3.8 ) (7.1 ) (10.9 ) Amounts reclassified from accumulated other comprehensive loss — 13.8 13.8 Net current-period other comprehensive income (loss) (3.8 ) 6.7 2.9 Balance at December 31, 2018 (10.6 ) (34.9 ) (45.5 ) Adoption of new accounting standard — (11.5 ) (11.5 ) Adjusted balance at December 31, 2018 (10.6 ) (46.4 ) (57.0 ) Other comprehensive income (loss) before reclassifications 20.4 (5.1 ) 15.3 Amounts reclassified from accumulated other comprehensive loss — 5.3 5.3 Net current-period other comprehensive income 20.4 0.2 20.6 Balance at December 31, 2019 $ 9.8 $ (46.2 ) $ (36.4 ) |
Schedule of Reclassification out of Comprehensive Loss | Reclassifications out of accumulated other comprehensive loss are as follows: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Statement of Operations Caption Years Ended December 31, 2019 2018 2017 (in millions) Pension and other postretirement plans adjustments: Amortization of actuarial losses $ 6.6 $ 5.1 $ 7.3 (1) Amortization of prior service costs 0.4 0.4 0.4 (1) Settlement loss — 12.7 — (1) Total before tax 7.0 18.2 7.7 Income from continuing operations before income taxes Tax benefit (1.7 ) (4.4 ) (2.8 ) Income tax expense Net of tax $ 5.3 $ 13.8 $ 4.9 Income (loss) from continuing operations (1) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. Since these are components of net periodic pension cost other than service cost, the affected Consolidated Statement of Operations caption is other (non-operating) expense. (See Note 15 , "Pensions and Postretirement Benefits" for additional details). |
Equity Compensation Plan (Table
Equity Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Information With Respect to Stock Options | We used the following assumptions in determining the fair value of these awards: Expected stock price volatility Annual expected dividend yield Risk free interest rate Shares granted February 11, 2019 EnPro Industries, Inc. 30.72 % 1.40 % 2.53 % S&P 600 Capital Goods Index 34.36 % n/a 2.53 % Shares granted February 12, 2018 EnPro Industries, Inc. 32.41 % 1.15 % 1.92 % S&P 600 Capital Goods Index 34.90 % n/a 1.92 % Shares granted February 13, 2017 EnPro Industries, Inc. 31.23 % 1.23 % 1.45 % S&P 600 Capital Goods Index 34.86 % n/a 1.45 % The following table provides certain information with respect to stock options as of December 31, 2019: Range of Exercise Price Share Options Outstanding Stock Options Exercisable Weighted Average Exercise Price Weighted Average Remaining Contractual Life Under $60.00 18,187 18,187 $ 42.24 1.12 Over $60.00 40,937 — 66.31 9.57 Total 59,124 18,187 $ 58.91 6.97 |
Summary of Restricted Share Units Activity, Performance Share Activity and Restricted Stock Activity | A summary of award activity under these plans is as follows: Restricted Share Units Performance Shares Shares Weighted- Average Grant Date Fair Value Shares Weighted- Average Grant Date Fair Value Nonvested at December 31, 2016 262,022 $ 59.43 283,515 $ 58.84 Granted 77,120 68.55 84,534 76.93 Vested (79,417 ) 64.16 (76,487 ) 63.81 Forfeited (17,607 ) 56.32 (8,823 ) 61.43 Achievement level adjustment — — (12,140 ) 63.81 Shares settled for cash (6,561 ) 54.29 — — Nonvested at December 31, 2017 235,557 57.87 270,599 61.92 Granted 73,817 82.03 77,076 93.61 Vested (58,188 ) 63.64 (51,207 ) 63.81 Forfeited (19,853 ) 65.17 (25,142 ) 65.14 Achievement level adjustment — — (71,671 ) 63.81 Shares settled for cash (12,403 ) 64.19 — — Nonvested at December 31, 2018 218,930 63.46 199,655 75.87 Granted 78,576 68.48 116,342 77.15 Vested (78,958 ) 44.44 (75,312 ) 49.68 Forfeited (6,830 ) 72.99 (12,130 ) 82.26 Achievement level adjustment — — 24,105 49.68 Shares settled for cash (12,294 ) 43.85 — — Nonvested at December 31, 2019 199,424 $ 72.72 252,660 $ 81.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Valuation Assumptions | The following assumptions were used to estimate the fair value of the 2019 option awards: Average expected term 7 years Expected volatility 29.68 % Risk-free interest rate 1.95 % Expected dividend yield 1.51 % |
Share-based Payment Arrangement, Option, Activity | A summary of option activity under the Plan as of December 31, 2019 , and changes during the year then ended, is presented below: Share Options Outstanding Weighted Average Exercise Price Balance at December 31, 2018 18,187 $ 42.24 Granted 40,937 66.31 Balances at December 31, 2019 59,124 $ 58.91 |
Schedule Of Intrinsic Value Related to stock Options | The year-end intrinsic value related to stock options is presented below: As of and for the Years Ended December 31, (in millions) 2019 2018 2017 Options outstanding $ 0.5 $ 0.3 $ 0.9 Options exercisable $ 0.4 $ 0.3 $ 0.9 Options exercised $ — $ — $ 2.2 |
Schedule of Equity Based Compensation | We recognized the following equity-based employee compensation expenses and benefits related to our Plan activity: Years Ended December 31, (in millions) 2019 2018 2017 Compensation expense $ 6.8 $ 6.5 $ 9.5 Related income tax benefit $ 2.2 $ 1.9 $ 3.6 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Operating Results and Other Financial Data | Segment operating results and other financial data for the years ended December 31, 2019 , 2018 , and 2017 were as follows: Years Ended December 31, 2019 2018 2017 (in millions) Sales Sealing Products $ 911.5 $ 954.4 $ 804.3 Engineered Products 298.3 323.9 301.1 1,209.8 1,278.3 1,105.4 Intersegment sales (4.1 ) (4.2 ) (4.0 ) Total sales $ 1,205.7 $ 1,274.1 $ 1,101.4 Segment Profit Sealing Products $ 93.8 $ 85.2 $ 90.4 Engineered Products 29.3 40.1 30.1 Total segment profit 123.1 125.3 120.5 Corporate expenses (36.4 ) (34.9 ) (36.3 ) Interest expense, net (18.2 ) (27.3 ) (49.4 ) Gain on reconsolidation of GST and OldCo — — 534.4 Other expense, net (64.2 ) (48.0 ) (23.2 ) Income from continuing operations before income taxes $ 4.3 $ 15.1 $ 546.0 |
Schedule of Net Sales by Geographical Area | Years Ended December 31, 2019 2018 2017 (in millions) Net Sales by Geographic Area United States $ 630.2 $ 736.2 $ 588.5 Europe 301.2 278.6 266.1 Other foreign 274.3 259.3 246.8 Total $ 1,205.7 $ 1,274.1 $ 1,101.4 |
Disaggregation of Revenue | Below is a summary of our third party sales by major end market with which we did business for the years ended December 31, 2019 and 2018 : Year Ended December 31, 2019 (in millions) Sealing Products Engineered Products Total Aerospace $ 57.4 $ 12.0 $ 69.4 Automotive 7.0 81.5 88.5 Chemical and material processing 48.0 49.4 97.4 Food and pharmaceutical 38.8 0.7 39.5 General industrial 176.2 93.9 270.1 Medium-duty/heavy-duty truck 340.9 1.2 342.1 Oil and gas 62.4 43.5 105.9 Power generation 47.7 9.5 57.2 Semiconductors 115.7 — 115.7 Other 13.9 6.0 19.9 Total third party sales $ 908.0 $ 297.7 $ 1,205.7 Year Ended December 31, 2018 (in millions) Sealing Products Engineered Products Total Aerospace $ 54.1 $ 8.4 $ 62.5 Automotive 5.3 97.3 102.6 Chemical and material processing 54.5 49.5 104.0 Food and pharmaceutical 37.1 1.0 38.1 General industrial 174.2 99.3 273.5 Medium-duty/heavy-duty truck 387.3 1.1 388.4 Oil and gas 53.9 46.8 100.7 Power generation 57.8 11.2 69.0 Semiconductors 113.7 — 113.7 Other 13.0 8.6 21.6 Total third party sales $ 950.9 $ 323.2 $ 1,274.1 |
Schedule of Segment Related Capital Expenditure, Depreciation and Amortization on those Expenditures | Years Ended December 31, 2019 2018 2017 (in millions) Capital Expenditures Sealing Products $ 14.2 $ 26.0 $ 20.4 Engineered Products 7.4 10.1 9.9 Total capital expenditures $ 21.6 $ 36.1 $ 30.3 Depreciation and Amortization Expense Sealing Products $ 53.1 $ 50.7 $ 41.8 Engineered Products 14.8 15.4 16.8 Total depreciation and amortization $ 67.9 $ 66.1 $ 58.6 |
Schedule of Total Assets Segment | As of December 31, 2019 2018 (in millions) Assets Sealing Products $ 1,337.6 $ 1,008.8 Engineered Products 238.3 220.6 Corporate 205.1 220.3 Discontinued operations 254.1 266.1 $ 2,035.1 $ 1,715.8 |
Schedule of Long Lived Assets Segment | Long-Lived Assets United States $ 130.1 $ 145.0 France 24.2 26.0 Other Europe 20.7 21.9 Other foreign 43.8 41.4 Total $ 218.8 $ 234.3 |
Subsidiary Asbestos Bankruptc_2
Subsidiary Asbestos Bankruptcies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Reorganizations [Abstract] | |
Schedule of Reconsolidation | The following unaudited supplemental pro forma condensed consolidated financial results of operations for the Company for the year ended December 31, 2017 is presented as if the reconsolidation had been completed prior to 2017: Years Ended December 31, 2017 ($ in millions, except per share amounts) Pro forma net sales $ 1,191.0 Pro forma net income from continuing operations $ 33.1 Pro forma earnings per share from continuing operations - basic $ 1.55 Pro forma earnings per share from continuing operations - diluted $ 1.52 Associated with the reconsolidation of GST and OldCo, we recorded a pretax gain of $534.4 million . The amounts comprising the gain include: (in millions) Gain on revaluation of investment in GST and OldCo $ 248.3 Elimination of net amounts payable to GST and OldCo at reconsolidation date 286.1 Total $ 534.4 |
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 which they were not consolidated in our results include the following: Consolidated Statements of Operations Caption Seven Months Ended July 30, 2017 Description (in millions) Sales to GST Net sales $ 18.8 Purchases from GST Cost of sales $ 12.2 Interest expense to GST Interest expense $ 20.6 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Changes In Carrying Amount Of Product Warranty Liability | Changes in the carrying amount of the product warranty liability for the years ended December 31, 2019 , 2018 and 2017 are as follows: 2019 2018 2017 (in millions) Balance at beginning of year $ 9.4 $ 2.7 $ 2.5 Charges to expense 5.8 10.1 2.5 Settlements made (5.1 ) (3.4 ) (2.3 ) Balance at end of year $ 10.1 $ 9.4 $ 2.7 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Quarterly Financial Data | First Quarter Second Quarter Third Quarter Fourth Quarter (in millions, except per share data) 2019 2018 2019 2018 2019 2018 2019 2018 Net sales $ 303.0 $ 316.7 $ 317.2 $ 340.0 $ 299.0 $ 326.7 $ 286.5 $ 290.7 Gross profit $ 99.5 $ 112.4 $ 108.5 $ 106.9 $ 97.7 $ 109.5 $ 98.1 $ 89.7 Income (loss) from continuing operations $ 7.8 $ 9.2 $ 16.6 $ 8.8 $ (8.4 ) $ 17.1 $ (8.2 ) $ (39.8 ) Income from discontinued operations, net of tax $ 5.3 $ 3.4 $ 7.3 $ 1.1 $ 6.9 $ 7.1 $ 11.0 $ 12.7 Net income (loss) $ 13.1 $ 12.6 $ 23.9 $ 9.9 $ (1.5 ) $ 24.2 $ 2.8 $ (27.1 ) Basic earnings (loss) per share: Continuing operations $ 0.37 $ 0.43 $ 0.81 $ 0.42 $ (0.41 ) $ 0.83 $ (0.40 ) $ (1.92 ) Discontinued operations 0.26 0.16 0.35 0.05 0.33 0.34 0.54 0.61 Net income (loss) per share $ 0.63 $ 0.59 $ 1.16 $ 0.47 $ (0.08 ) $ 1.17 $ 0.14 $ (1.31 ) Diluted earnings (loss) per share: Continuing operations $ 0.37 $ 0.42 $ 0.80 $ 0.42 $ (0.41 ) $ 0.82 $ (0.40 ) $ (1.92 ) Discontinued operations 0.26 0.16 0.35 0.05 0.33 0.34 0.54 0.61 Net income (loss) per share $ 0.63 $ 0.58 $ 1.15 $ 0.47 $ (0.08 ) $ 1.16 $ 0.14 $ (1.31 ) |
Overview, Basis of Presentati_3
Overview, Basis of Presentation, Significant Accounting Policies and Recently Issued Accounting Guidance (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets | $ 37.5 | ||||
Lease liability | 37.7 | ||||
Foreign currency transaction losses | 3 | $ 0.6 | $ (1) | ||
Total research and development expenditures | $ 20.6 | $ 22.9 | $ 24.5 | ||
Percentage of inventories were valued by the LIFO method | 19.00% | 16.00% | |||
Assets fair value | $ 46.1 | $ 46.5 | |||
Building Improvements | Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment useful life, in years | 5 years | ||||
Building Improvements | Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment useful life, in years | 25 years | ||||
Machinery and Equipment | Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment useful life, in years | 3 years | ||||
Machinery and Equipment | Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Property, plant and equipment useful life, in years | 10 years | ||||
Order Backlog | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Backlog of orders of continuing operations | $ 190.7 | $ 216.9 | |||
Finite-Lived Intangible Assets | Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Intangible assets estimated useful lives, minimum, in years | 2 years | ||||
Finite-Lived Intangible Assets | Maximum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Intangible assets estimated useful lives, minimum, in years | 21 years | ||||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Right-of-use assets | $ 27 | ||||
Lease liability | $ 27 | ||||
Pension and Other Postretirement Plans adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Adoption of new accounting standard | $ 11.5 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Backlog orders expected percentage | 5.00% | ||||
Trade Names | Motorwheel Product Line | Sealing Products | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Indefinite lived Motorwheel tradename | $ 7.9 | ||||
Assets fair value | $ 2.1 |
Discontinued Operations - Resul
Discontinued Operations - Results of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating expenses: | |||
Income from discontinued operations, net of taxes | $ 30.5 | $ 24.3 | $ 21.9 |
Discontinued Operations, Held-for-sale | Fairbanks Morse | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 284.2 | 257.9 | 208.2 |
Cost of sales | 216.9 | 197.4 | 149.3 |
Gross profit | 67.3 | 60.5 | 58.9 |
Operating expenses: | |||
Selling, general, and administrative expenses | 28.2 | 28.8 | 27.4 |
Other | 0.8 | 0.2 | 0 |
Total operating expenses | 29 | 29 | 27.4 |
Income from discontinued operations before income taxes | 38.3 | 31.5 | 31.5 |
Income tax expense | (7.8) | (7.2) | (9.6) |
Income from discontinued operations, net of taxes | $ 30.5 | $ 24.3 | $ 21.9 |
Discontinued Operations - Class
Discontinued Operations - Classes of Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Total current assets of discontinued operations | $ 254.1 | $ 186.2 |
Liabilities: | ||
Total current liabilities of discontinued operations | 89.5 | 61.2 |
Fairbanks Morse | Discontinued Operations, Held-for-sale | ||
Assets: | ||
Accounts receivable | 107.8 | 122.9 |
Inventories | 60.2 | 58.9 |
Prepaid expenses and other current assets | 6.6 | 4.4 |
Total current assets of discontinued operations | 174.6 | 186.2 |
Property, plant, and equipment | 63 | 66.9 |
Goodwill | 11.8 | 11.6 |
Other assets | 4.7 | 1.4 |
Total assets of discontinued operations | 254.1 | 266.1 |
Liabilities: | ||
Accounts payable | 36.9 | 42.9 |
Accrued expenses | 48.2 | 18.3 |
Total current liabilities of discontinued operations | 85.1 | 61.2 |
Other liabilities | 4.4 | 5.8 |
Total liabilities of discontinued operations | $ 89.5 | $ 67 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Details) - Fairbanks Morse - USD ($) $ in Millions | Jan. 21, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Discontinued Operations, Held-for-sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Increased income before income taxes | $ 2.4 | $ 2.2 | $ 2.1 | |
Subsequent Event | Discontinued Operations, Disposed of by Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of investment projects | $ 450 | |||
The pre-tax gain on the disposition | $ 280 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Additional Information (Detail) $ in Millions | Sep. 25, 2019USD ($)installmentsellerlocation | Jul. 02, 2019USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Oct. 31, 2017 |
Business Acquisition [Line Items] | ||||||||||||||
Acquisitions, net of cash acquired | $ 310.5 | $ 0 | $ 44.6 | |||||||||||
Percent acquired | 100.00% | |||||||||||||
Goodwill | $ 485.3 | $ 322.1 | 485.3 | 322.1 | 324.1 | |||||||||
Net sales | $ 286.5 | $ 299 | $ 317.2 | $ 303 | $ 290.7 | $ 326.7 | $ 340 | $ 316.7 | 1,205.7 | 1,274.1 | 1,101.4 | |||
Income before income taxes | 4.3 | 15.1 | 546 | |||||||||||
LeanTeq | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisitions, net of cash acquired | $ 271.2 | |||||||||||||
Number of sellers | seller | 2 | |||||||||||||
Acquisition-related costs | 6.4 | |||||||||||||
Aseptic | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percent acquired | 100.00% | |||||||||||||
Consideration transferred | $ 39.3 | |||||||||||||
LeanTeq and Aseptic | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Acquisition-related costs | 7 | 7 | ||||||||||||
Goodwill | $ 159 | |||||||||||||
Expected tax deductible goodwill | $ 2.7 | |||||||||||||
Expected tax deductible goodwill term | 15 years | |||||||||||||
Other intangible assets | $ 214.2 | |||||||||||||
Indemnification assets | 6.1 | |||||||||||||
Contingent liabilities | $ 8.9 | |||||||||||||
Net sales | 14.4 | |||||||||||||
Income before income taxes | 1.5 | |||||||||||||
Taiwan | LeanTeq | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of locations | location | 2 | |||||||||||||
United States | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Net sales | $ 630.2 | $ 736.2 | $ 588.5 | |||||||||||
United States | LeanTeq | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Number of locations | location | 1 | |||||||||||||
Trade Names | LeanTeq and Aseptic | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Other intangible assets | $ 1.1 | |||||||||||||
Customer Relationships, Proprietary Technology, Trade Names, Favorable Leasehold Interests and Non-Competition Agreements | LeanTeq and Aseptic | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Other intangible assets | $ 213.1 | |||||||||||||
Weighted average amortization period | 16 years | |||||||||||||
Lunar | LeanTeq | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Percent of ownership by rollover equity sellers | 10.00% | |||||||||||||
Fair value of rollover equity | $ 28 | |||||||||||||
Rollover equity right term following third anniversary of closing | 90 days | |||||||||||||
Rollover equity rights payable installments | installment | 2 | |||||||||||||
Rollover equity rights payable installments term | 12 months | |||||||||||||
Rollover equity rights, discount for certain events | 20.00% | |||||||||||||
Rollover equity, calculated compensation amount | $ 6.4 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Schedules (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 25, 2019 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 485.3 | $ 322.1 | $ 324.1 | |
Pro forma net sales | 1,191 | |||
Pro forma net income (loss) from continuing operations | 33.1 | |||
LeanTeq and Aseptic | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 7.5 | |||
Property, plant and equipment | 7.5 | |||
Goodwill | 159 | |||
Other intangible assets | 214.2 | |||
Other assets | 17.4 | |||
Deferred income taxes | (50.1) | |||
Liabilities assumed | (17) | |||
Redeemable non-controlling interest | (28) | |||
Purchase price allocation | $ 310.5 | |||
Pro forma net sales | 1,234.7 | 1,312.7 | 1,131.2 | |
Pro forma net income (loss) from continuing operations | $ 9.4 | $ (11.5) | $ 499.5 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 29, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||||||
Loss on sale of businesses | $ 11.3 | $ 0 | $ 0 | ||||
Proceeds from sale of business | 3.6 | $ 0 | $ 0 | ||||
Certain Assets and Liabilities of Brake Products Business | |||||||
Business Acquisition [Line Items] | |||||||
Loss on sale of businesses | 16.3 | ||||||
Proceeds from sale of business | $ 7 | ||||||
Sale of Facility | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of business | $ 0.1 | ||||||
Sale of Facility | Other Expense | |||||||
Business Acquisition [Line Items] | |||||||
Loss on disposal | (0.6) | ||||||
Sale of Business | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of business | $ 3.6 | ||||||
Sale of Business | Other Expense | |||||||
Business Acquisition [Line Items] | |||||||
Loss on disposal | (15.7) | ||||||
Non-Cash Loss on Sale of Business | Other Expense | |||||||
Business Acquisition [Line Items] | |||||||
Loss on disposal | (11.3) | ||||||
Contract Cancellation, Severance and Other | Other Expense | |||||||
Business Acquisition [Line Items] | |||||||
Loss on disposal | $ (4.4) | ||||||
Forecast | Sale of Business | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of business | $ 0.4 | ||||||
Subsequent Event | Sale of Facility | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from sale of business | $ 2.9 |
Other Expense - Additional Info
Other Expense - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($)position | Dec. 31, 2017USD ($)position | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Restructuring costs incurred | $ 35.1 | $ 22.2 | $ 5.1 | |||
Impairment of finite-lived intangible assets | $ 1.6 | $ 19.1 | 10.1 | |||
Restructuring charges | 3.1 | $ 15.4 | 6.3 | $ 8 | $ 3.1 | |
Severance costs | 1 | 3.8 | ||||
Total restructuring costs of the sealing products | $ 30.8 | |||||
Total workforce reductions | position | 121 | 98 | 117 | |||
Gain on disposition of property | 21.7 | |||||
Net tangible asset write downs | 3.1 | 1.8 | ||||
Other restructuring costs | 0.5 | |||||
Total net restructuring costs | 3.5 | |||||
Inventory-related costs | $ 2 | |||||
Asset write-downs | $ 29.4 | $ 14.1 | $ 12.1 | |||
Legal fees primarily related to the bankruptcy of certain subsidiaries | 0.2 | 2 | 1.7 | |||
Environmental remediation expense | 14.5 | 13.4 | 8.7 | |||
Adoption of new accounting standard | (0.3) | 0.2 | ||||
Loss on sale of businesses | 11.3 | 0 | 0 | |||
Loss on extinguishment of debt | $ 18.1 | 0 | 18.1 | 0 | ||
Accounting Standards Update 2017-07 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Adoption of new accounting standard | 3.3 | 12 | 0.5 | |||
Customer relationships | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Impairment of finite-lived intangible assets | 1.8 | |||||
Cost of sales | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Restructuring charges | 3.1 | 1.1 | ||||
Restructuring Charges | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Asset write-downs | 28.8 | 14.2 | 2 | |||
Certain Assets and Liabilities of Brake Products Business | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Loss on sale of businesses | 16.3 | |||||
Net sales | 22.1 | 37.5 | 37.1 | |||
Sealing Products | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Restructuring costs incurred | 32.3 | $ 21.4 | $ 3.6 | |||
Motorwheel Product Line | Sealing Products | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Impairment of assets | 21 | |||||
Impairment of finite-lived intangible assets | 9.2 | |||||
Impairment of PP&E | $ 3.9 | |||||
Motorwheel Product Line | Sealing Products | Trade Names | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Indefinite lived Motorwheel tradename | $ 7.9 |
Other Expense - Schedule of Res
Other Expense - Schedule of Restructuring Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 1 | $ 1.9 | $ 5.1 | ||
Provision | $ 3.1 | $ 15.4 | 6.3 | 8 | 3.1 |
Payments | (5.9) | (8.9) | (6.3) | ||
Ending balance | 1.4 | 1 | 1.4 | 1 | 1.9 |
Personnel-related costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | 0.7 | 3.5 | ||
Provision | 5.1 | 6.7 | 2.5 | ||
Payments | (3.7) | (7.4) | (5.3) | ||
Ending balance | 1.4 | 0 | 1.4 | 0 | 0.7 |
Facility relocation and closure costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 1 | 1.2 | 1.6 | ||
Provision | 1.2 | 1.3 | 0.6 | ||
Payments | (2.2) | (1.5) | (1) | ||
Ending balance | $ 0 | $ 1 | $ 0 | $ 1 | $ 1.2 |
Other Expense - Schedule of R_2
Other Expense - Schedule of Restructuring Costs by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | $ 35.1 | $ 22.2 | $ 5.1 |
Sealing Products | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | 32.3 | 21.4 | 3.6 |
Engineered Products | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | 2.1 | 0.7 | 1.5 |
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs incurred | $ 0.7 | $ 0.1 | $ 0 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Tax Domestic and Foreign (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (67.3) | $ (75.3) | $ 493.9 |
Foreign | 71.6 | 90.4 | 52.1 |
Income from continuing operations before income taxes | $ 4.3 | $ 15.1 | $ 546 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense in Consolidated Statements of Operations from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (1.4) | $ (4.3) | $ (26.4) |
Foreign | 24.9 | 22.8 | 17.2 |
State | 1.3 | (0.3) | 0.9 |
Current income tax expense | 24.8 | 18.2 | (8.3) |
Deferred: | |||
Federal | (6.4) | (5.2) | 14.9 |
Foreign | (19.5) | 1.4 | 17.1 |
State | (2.4) | 5.4 | 4.4 |
Deferred income tax expense | (28.3) | 1.6 | 36.4 |
Total | $ (3.5) | $ 19.8 | $ 28.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% | ||
GILTI | 54.80% | 10.40% | 0.00% | ||
Provision for tax benefit | $ 30.9 | ||||
Provisional net tax expense (benefit) | $ 2.3 | ||||
Remeasurement of deferred tax assets | 35 | ||||
Tax charge (benefit) for the transition tax | (5) | 53.9 | |||
Tax benefit for related foreign tax credits | 43.5 | ||||
Additional provisional tax benefit | $ 6.3 | ||||
Provisional net reduction in deferred tax liabilities | 7.3 | ||||
Additional tax charge | 5.6 | ||||
Net operating loss carryforwards during period | $ 40.7 | $ 40.7 | |||
Foreign net operating loss carryforwards | 26 | 26 | |||
Indefinite operating loss carryforwards | 14.7 | ||||
State tax net operating loss carryforwards | 7 | 7 | |||
Deferred tax assets, valuation allowance | $ 7.9 | $ 7.9 | $ 23.9 | ||
Reduction in the valuation allowance | 1500000000.00% | (349.20%) | (6.30%) | 0.20% | |
Foreign subsidiaries undistributed earnings | $ 250.3 | $ 250.3 | |||
Foreign earnings repatriated | 26.8 | ||||
Gross unrecognized tax benefits | 10.1 | 10.1 | $ 2.9 | $ 3.8 | $ 2.8 |
Effective tax rate impact if ultimately recognized | 8.5 | 8.5 | 2.6 | ||
Amount accrued for interest and penalties | 2.7 | 2.7 | 0.3 | ||
Interest and penalties related to unrecognized tax benefits | 0.5 | $ 0.3 | $ 0.3 | ||
Expected change in unrecognized tax benefits | 2.4 | ||||
Gross unrecognized tax benefits may be recognized within the next twelve months | $ 1.6 | $ 1.6 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Net operating losses and tax credits | $ 34.8 | $ 43.4 |
Postretirement benefits other than pensions | 2.1 | 2.1 |
Environmental reserves | 8.6 | 7.5 |
Retained liabilities of previously owned businesses | 1 | 1.1 |
Accruals and reserves | 6.5 | 9.1 |
Operating leases | 10.9 | 0 |
Pension obligations | 1.9 | 0.9 |
Inventories | 6.2 | 4.2 |
Interest | 17.8 | 11.4 |
Compensation and benefits | 7.3 | 7.7 |
Gross deferred income tax assets | 97.1 | 87.4 |
Valuation allowance | (7.9) | (23.9) |
Total deferred income tax assets | 89.2 | 63.5 |
Deferred income tax liabilities: | ||
Depreciation and amortization | (120.8) | (85.9) |
Operating leases | (10.9) | 0 |
Cross currency swap | (2.9) | (1.2) |
Joint ventures | (0.3) | (0.3) |
Total deferred income tax liabilities | (134.9) | (87.4) |
Net deferred tax liabilities | $ (45.7) | $ (23.9) |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Other assets (non-current) | $ 25.5 | $ 11 |
Deferred taxes and non-current income taxes payable | (71.2) | (34.9) |
Net deferred tax liabilities | $ (45.7) | $ (23.9) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% | |
U.S. taxation of foreign profits, net of foreign tax credits | 3.30% | 1.10% | 0.60% | |
Research and employment tax credits | (17.20%) | (7.70%) | (0.20%) | |
State and local taxes | (22.40%) | 25.50% | 0.40% | |
Foreign tax rate differences | 152.30% | 27.80% | (0.80%) | |
Statutory changes in tax rates | 17.80% | (1.10%) | (0.20%) | |
Valuation allowance | 1500000000.00% | (349.20%) | (6.30%) | 0.20% |
Changes in uncertain tax positions | (9.00%) | 9.90% | 0.00% | |
Nondeductible expenses | 57.30% | 5.70% | 0.20% | |
Gain on reconsolidation of GST and OldCo | 0.00% | 0.00% | (34.30%) | |
Reconsolidation step-up of net assets of GST and OldCo to fair value | 0.00% | 0.00% | 7.90% | |
GILTI and FDII | 54.80% | 10.40% | 0.00% | |
Other Tax Act items | 0.00% | 48.20% | (4.40%) | |
Other items, net | 12.00% | (3.10%) | 0.70% | |
Effective income tax rate | (79.30%) | 131.40% | 5.10% |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 2.9 | $ 3.8 | $ 2.8 |
Reconsolidation of GST and OldCo | 0 | 0 | 0.2 |
Additions based on tax positions related to the current year | 1.2 | 0.2 | 0.3 |
Additions for tax positions of prior years | 7.2 | 0 | 1.1 |
Reductions as a result of a lapse in the statute of limitations | (1.2) | (0.1) | (0.3) |
Reductions as a result of audit settlements | 0 | (1) | (0.3) |
Balance at end of year | $ 10.1 | $ 2.9 | $ 3.8 |
Earnings (Loss) Per Share - Sch
Earnings (Loss) 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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator (basic and diluted): | |||||||||||
Income (loss) from continuing operations | $ (8.2) | $ (8.4) | $ 16.6 | $ 7.8 | $ (39.8) | $ 17.1 | $ 8.8 | $ 9.2 | $ 7.8 | $ (4.7) | $ 517.9 |
Income from discontinued operations | 11 | 6.9 | 7.3 | 5.3 | 12.7 | 7.1 | 1.1 | 3.4 | 30.5 | 24.3 | 21.9 |
Net income | $ 2.8 | $ (1.5) | $ 23.9 | $ 13.1 | $ (27.1) | $ 24.2 | $ 9.9 | $ 12.6 | $ 38.3 | $ 19.6 | $ 539.8 |
Denominator: | |||||||||||
Weighted-average shares – basic (in shares) | 20.7 | 20.9 | 21.3 | ||||||||
Share-based awards (in shares) | 0.1 | 0 | 0.5 | ||||||||
Weighted-average shares – diluted (in shares) | 20.8 | 20.9 | 21.8 | ||||||||
Basic earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | $ (0.40) | $ (0.41) | $ 0.81 | $ 0.37 | $ (1.92) | $ 0.83 | $ 0.42 | $ 0.43 | $ 0.38 | $ (0.22) | $ 24.25 |
Discontinued operations (in dollars per share) | 0.54 | 0.33 | 0.35 | 0.26 | 0.61 | 0.34 | 0.05 | 0.16 | 1.48 | 1.16 | 1.03 |
Net income (in dollars per share) | 0.14 | (0.08) | 1.16 | 0.63 | (1.31) | 1.17 | 0.47 | 0.59 | 1.86 | 0.94 | 25.28 |
Diluted earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | (0.40) | (0.41) | 0.80 | 0.37 | (1.92) | 0.82 | 0.42 | 0.42 | 0.38 | (0.22) | 23.76 |
Discontinued operations (in dollars per share) | 0.54 | 0.33 | 0.35 | 0.26 | 0.61 | 0.34 | 0.05 | 0.16 | 1.47 | 1.16 | 1 |
Net income per share (in dollars per share) | $ 0.14 | $ (0.08) | $ 1.15 | $ 0.63 | $ (1.31) | $ 1.16 | $ 0.47 | $ 0.58 | $ 1.85 | $ 0.94 | $ 24.76 |
Antidilutive securities excluded (in shares) | 0.2 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished products | $ 80.6 | $ 88.4 |
Work in process | 23.7 | 21.1 |
Raw materials and supplies | 56.1 | 67.6 |
Gross inventory | 160.4 | 177.1 |
Reserve to reduce certain inventories to LIFO basis | (3.3) | (2.9) |
Total inventories | $ 157.1 | $ 174.2 |
Property, Plant and Equipment -
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 13.6 | $ 13.3 |
Buildings and improvements | 123.6 | 129.2 |
Machinery and equipment | 341.8 | 352.1 |
Construction in progress | 17.7 | 21 |
Gross | 496.7 | 515.6 |
Less accumulated depreciation | (277.9) | (281.3) |
Total | $ 218.8 | $ 234.3 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Net Carrying Value of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 322.1 | $ 324.1 | |
Foreign currency translation | 5.5 | (2) | |
Acquisitions | 159 | ||
Dispositions | (1.3) | ||
Goodwill, ending balance | 485.3 | 322.1 | |
Sealing Products | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 311.3 | 313.2 | |
Foreign currency translation | 5.4 | (1.9) | |
Acquisitions | 159 | ||
Dispositions | (1.3) | ||
Goodwill, ending balance | 474.4 | 311.3 | |
Accumulated impairment losses | 27.8 | 27.8 | $ 27.8 |
Engineered Products | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 10.8 | 10.9 | |
Foreign currency translation | 0.1 | (0.1) | |
Acquisitions | 0 | ||
Dispositions | 0 | ||
Goodwill, ending balance | 10.9 | 10.8 | |
Accumulated impairment losses | $ 154.8 | $ 154.8 | $ 154.8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 660.6 | $ 460.4 |
Accumulated Amortization | 265.1 | 242.2 |
Trademarks | 71.4 | 79.1 |
Total | 732 | 539.5 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 470.1 | 284.5 |
Accumulated Amortization | 166.2 | 150.2 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 117.5 | 112.3 |
Accumulated Amortization | 50.8 | 45.1 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 39.4 | 35.3 |
Accumulated Amortization | 24.1 | 23.1 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 33.6 | 28.3 |
Accumulated Amortization | $ 24 | $ 23.8 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Amortization expense | $ 32.5 | $ 28.9 | $ 24.7 |
Sealing Products | |||
Segment Reporting Information [Line Items] | |||
Accumulated impairment losses | 27.8 | 27.8 | 27.8 |
Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Accumulated impairment losses | $ 154.8 | $ 154.8 | $ 154.8 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization Expense of Intangible Assets (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 34.8 |
2021 | 31.9 |
2022 | 30.2 |
2023 | 29.2 |
2024 | $ 27.4 |
Leases - Narrative and Other In
Leases - Narrative and Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease cost | $ 10.9 | ||
Operating cash flows from operating leases | 11.1 | ||
Short-term and variable lease costs | 0.9 | ||
Right-of-use assets | $ 20.8 | ||
Weighted average remaining lease term for operating lease | 5 years 10 months 24 days | ||
Weighted average operating discount rate used to determine the operating lease liability (percent) | 3.90% | ||
Net rent expense | $ 13.5 | $ 12.2 | |
Building | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 11 years | ||
Lease renewal term | 5 years | ||
Vehicle, Equipment, and Other Leases | |||
Lessee, Lease, Description [Line Items] | |||
Remaining lease term | 7 years | ||
Lease renewal term | 1 month | ||
Percent of operating lease assets and liabilities | 14.00% | ||
Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Percent of operating lease assets and liabilities | 86.00% |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 37.5 |
Current liability | 9.3 |
Long-term liability | 28.4 |
Total liability | $ 37.7 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 10.6 |
2021 | 7.9 |
2022 | 5.7 |
2023 | 5.1 |
2024 | 3.8 |
Thereafter | 9.2 |
Total lease payments | 42.3 |
Less: interest | (4.6) |
Present value of lease liabilities | $ 37.7 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Salaries, wages and employee benefits | $ 43.7 | $ 53.6 |
Interest | 5.1 | 4.9 |
Environmental | 25.2 | 16.4 |
Warranty | 4.1 | 8.9 |
Income and other taxes | 22.6 | 21.2 |
Operating lease liability | 9.3 | |
Other | 27.3 | 27 |
Total accrued expenses | $ 137.3 | $ 132 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long Term Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 629.3 | $ 464.9 |
Less current maturities of long-term debt | 4.1 | 2.4 |
Long-term debt, net | 625.2 | 462.5 |
Senior notes | ||
Debt Instrument [Line Items] | ||
Senior notes | 345.3 | 344.9 |
Revolving debt | ||
Debt Instrument [Line Items] | ||
Revolving debt | 133.9 | 116.7 |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | 149.1 | 0 |
Other notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1 | $ 3.3 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) | Sep. 25, 2019 | Oct. 17, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2018 |
Line of Credit Facility [Line Items] | |||||||
Loss on extinguishment of debt | $ 18,100,000 | $ 0 | $ 18,100,000 | $ 0 | |||
Unamortized debt discount | 4,700,000 | ||||||
Debt issuance costs capitalized | $ 6,600,000 | $ 1,600,000 | $ 6,600,000 | ||||
Term loan facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt instrument, periodic payment, years one to three, percentage of principal | 2.50% | ||||||
Debt instrument, periodic payment, years four, percentage of principal | 5.00% | ||||||
Debt instrument, periodic payment, year five, percentage of principal | 1.25% | ||||||
Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Senior notes | $ 350,000,000 | ||||||
Interest rate | 5.75% | 5.875% | |||||
Aggregate principal amount redeemed | $ 450,000,000 | ||||||
Redemption price | 102.938% | ||||||
Revolving Credit Facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity expansion threshold | $ 225,000,000 | ||||||
Maximum borrowing capacity expansion threshold, percent | 100.00% | ||||||
Capacity available for specific purpose | $ 100,000,000 | ||||||
Credit facility borrowing capacity | 248,700,000 | ||||||
Letter of credit outstanding | $ 17,500,000 | ||||||
Revolving Credit Facility | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Adjusted LIBOR rate interest spread | 1.50% | ||||||
Revolving Credit Facility | Base Rate | |||||||
Line of Credit Facility [Line Items] | |||||||
Adjusted LIBOR rate interest spread | 0.50% | ||||||
Revolving Credit Facility | Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 400,000,000 | ||||||
Credit facility maximum availability | 5 years | ||||||
Line of credit facility, unused capacity, commitment fee percentage | 0.175% | ||||||
Revolving debt | $ 133,900,000 | ||||||
Revolving Credit Facility | Term loan facility | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of credit facility, maximum borrowing capacity | $ 150,000,000 | ||||||
Credit facility maximum availability | 5 years | ||||||
Revolving debt | $ 149,100,000 | ||||||
Before October 15, 2021 | Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Redemption price | 100.00% |
Long-term Debt - Schedule of Fu
Long-term Debt - Schedule of Future Principal Payments on Long-Term Debt (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 4.1 |
2021 | 4.1 |
2022 | 4.8 |
2023 | 7.6 |
2024 | 263.3 |
Thereafter | 350.1 |
Total | $ 634 |
Derivatives and Hedging Derivat
Derivatives and Hedging Derivatives and Hedging (Details) € in Millions | 1 Months Ended | |||||||
Sep. 30, 2018USD ($) | Dec. 31, 2019USD ($) | May 31, 2019USD ($) | May 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Sep. 07, 2018EUR (€) | Mar. 31, 2018USD ($) | Mar. 31, 2018EUR (€) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||
Notional amount | $ 5,200,000 | $ 7,700,000 | ||||||
Derivative liability, notional amount | $ 200,000,000 | $ 100,000,000 | $ 200,000,000 | |||||
Amount of hedged item | € | € 89.6 | € 172.8 | € 161.8 | |||||
Weighted average interest rate | 3.50% | 3.50% | 2.80% | 3.29% | 3.29% | |||
Proceeds from settlement | 11,900,000 | |||||||
Receipts from settlements of derivative contracts | 9,300,000 | |||||||
Proceeds from interest | 2,600,000 | |||||||
Unrealized gains | $ 7,000,000 | |||||||
Derivative asset | 12,300,000 | |||||||
Derivative iability | $ 600,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Derivative asset | $ 12.3 | |
Assets fair value | 46.1 | $ 46.5 |
Liabilities | ||
Foreign currency derivatives | 0.6 | |
Liabilities | 11.9 | 8.9 |
Level 1 | ||
Assets | ||
Time deposits | 22.9 | 33.4 |
Deferred compensation assets | 10.9 | 8.6 |
Liabilities | ||
Deferred compensation liabilities | 11.3 | 8.9 |
Level 2 | ||
Assets | ||
Derivative asset | 12.3 | 4.5 |
Liabilities | ||
Foreign currency derivatives | $ 0.6 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Carrying Value of Financial Instruments (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Long-term debt, Carrying Value | $ 629.3 | $ 464.9 |
Long-term debt, Fair Value | $ 658 | $ 462.1 |
Pensions and Postretirement B_3
Pensions and Postretirement Benefits - Additional Information (Detail) - USD ($) | Jul. 03, 2018 | Jun. 26, 2018 | Jan. 01, 2007 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Minimum age of salaried employees with defined pension plans, in years | 40 years | |||||
Percentage of matching contributions for eligible employees of their eligible earnings | 6.00% | |||||
Additional employer contribution for those employees whose defined pension plan benefits were frozen | 2.00% | |||||
Matching contributions under plans | $ 11,700,000 | $ 10,700,000 | $ 9,000,000 | |||
Settlements | $ 68,000,000 | |||||
Settlements | $ 70,900,000 | |||||
Projected benefit obligation for the defined benefit pension plans with projected benefit obligations in excess of plan assets | 66,000,000 | 53,000,000 | ||||
Fair value of plan assets for the defined benefit pension plans with projected benefit obligations in excess of plan assets | 48,300,000 | 41,100,000 | ||||
Fair value of plan assets for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets | 57,200,000 | 47,600,000 | ||||
Accumulated benefit obligation for the defined benefit pension plans with accumulated benefit obligations in excess of plan assets | 44,800,000 | 38,700,000 | ||||
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Company contributions | 1,300,000 | 20,800,000 | ||||
Settlements | 300,000 | 71,100,000 | ||||
Settlements | 300,000 | 71,100,000 | ||||
Settlements | $ 12,800,000 | 0 | (12,700,000) | $ 0 | ||
Accumulated benefit obligation for all existing plans | $ 317,800,000 | $ 269,000,000 | ||||
Discount rate | 3.375% | 4.375% | 3.75% | |||
Basis point decrease (increase) in discount rate | 0.25% | |||||
Pension expense per year | $ 800,000 | |||||
Other Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Settlements | 0 | $ 0 | ||||
Settlements | 0 | 0 | $ 0 | |||
Accumulated benefit obligation for all existing plans | $ 3,900,000 | $ 3,800,000 | ||||
Discount rate | 3.375% | 4.375% | 3.75% | |||
United States | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Company contributions | $ 0 | $ 20,000,000 | $ 8,800,000 | |||
Foreign Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Company anticipates future contributions | $ 1,000,000 |
Pensions and Postretirement B_4
Pensions and Postretirement Benefits - Schedule of Change in Projected Benefit Obligations (Detail) - USD ($) $ in Millions | Jun. 26, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Change in Projected Benefit Obligations | ||||
Settlements | $ (68) | |||
Pension Plan | ||||
Change in Projected Benefit Obligations | ||||
Projected benefit obligations at beginning of year | $ 276.8 | $ 369.2 | ||
Service cost | 4.4 | 4.8 | $ 4.5 | |
Interest cost | 12.2 | 12.8 | 12.9 | |
Actuarial loss (gain) | 46.6 | (23.5) | ||
Settlements | (0.3) | (71.1) | ||
Benefits paid | (10.8) | (14) | ||
Other | 0.6 | (1.4) | ||
Projected benefit obligations at end of year | 329.5 | 276.8 | 369.2 | |
Other Benefits | ||||
Change in Projected Benefit Obligations | ||||
Projected benefit obligations at beginning of year | 4.1 | 4.7 | ||
Service cost | 0.1 | 0.1 | 0.1 | |
Interest cost | 0.1 | 0.1 | 0.1 | |
Actuarial loss (gain) | (0.2) | (0.6) | ||
Settlements | 0 | 0 | ||
Benefits paid | (0.5) | (0.7) | ||
Other | 0.4 | 0.5 | ||
Projected benefit obligations at end of year | $ 4 | $ 4.1 | $ 4.7 |
Pensions and Postretirement B_5
Pensions and Postretirement Benefits - Schedule of Change in Plan Assets and Underfunded Status at End of Year (Detail) - USD ($) $ in Millions | Jul. 03, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 313.5 | $ 267.6 | |
Settlements | $ (70.9) | ||
Fair value of plan assets at end of year | 267.6 | ||
Pension Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 313.5 | 267.6 | |
Actual return on plan assets | 56.5 | (17.9) | |
Administrative expenses | (0.8) | (0.9) | |
Benefits paid | (10.8) | (14) | |
Settlements | (0.3) | (71.1) | |
Company contributions | 1.3 | 20.8 | |
Fair value of plan assets at end of year | $ 267.6 | $ 350.7 |
Pensions and Postretirement B_6
Pensions and Postretirement Benefits - Schedule of Projected Benefit Obligations Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term assets | $ 1.7 | $ 2.7 |
Current liabilities | (0.6) | (0.8) |
Current liabilities held for sale | 0 | 0 |
Long-term liabilities | (17.1) | (11.1) |
Underfunded Status at End of Year | (16) | (9.2) |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Long-term assets | 0 | 0 |
Current liabilities | (0.2) | (0.3) |
Current liabilities held for sale | 0.7 | 0 |
Long-term liabilities | (3.1) | (3.8) |
Underfunded Status at End of Year | $ (4) | $ (4.1) |
Pensions and Postretirement B_7
Pensions and Postretirement Benefits - Schedule of Pre-Tax Charges Recognized in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | $ 22.7 | $ 5.2 | $ 27.3 |
Net actuarial (gain) loss | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | (60) | (60.8) | |
Net actuarial (gain) loss | Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | 1 | 0.9 | |
Prior service cost | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | 1.4 | 1.1 | |
Prior service cost | Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | 0 | 0.2 | |
Pension and Other Postretirement Plans | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | 61.4 | 61.9 | |
Pension and Other Postretirement Plans | Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other comprehensive income, before tax | $ (1) | $ (0.7) |
Pensions and Postretirement B_8
Pensions and Postretirement Benefits - Schedule of Net Periodic Benefit Cost (Detail) - USD ($) $ in Millions | Jul. 03, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 4.4 | $ 4.8 | $ 4.5 | |
Interest cost | 12.2 | 12.8 | 12.9 | |
Expected return on plan assets | (15.7) | (19) | (20.1) | |
Amortization of prior service cost | 0.2 | 0.3 | 0.3 | |
Amortization of net loss | 6.6 | 5.1 | 7.3 | |
Settlements | $ (12.8) | 0 | 12.7 | 0 |
Curtailments | 0 | 0 | (0.1) | |
Deconsolidation of GST | 0 | 0 | (0.3) | |
Net periodic benefit cost | 7.7 | 16.7 | 4.5 | |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.1 | 0.1 | 0.1 | |
Interest cost | 0.1 | 0.1 | 0.1 | |
Expected return on plan assets | 0 | 0 | 0 | |
Amortization of prior service cost | 0.2 | 0.1 | 0.1 | |
Amortization of net loss | 0 | 0 | 0 | |
Settlements | 0 | 0 | 0 | |
Curtailments | 0 | 0 | 0 | |
Deconsolidation of GST | 0 | 0 | 0 | |
Net periodic benefit cost | $ 0.4 | $ 0.3 | $ 0.3 |
Pensions and Postretirement B_9
Pensions and Postretirement Benefits - Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | $ 6.2 | $ 12.7 | $ (5.2) |
Settlements | 0 | (12.7) | 0 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | 5.8 | 13.3 | (5.8) |
Prior service cost | 0.5 | 0 | 0.5 |
Amortization of net loss | (6.6) | (5.1) | (7.3) |
Amortization of prior service cost | (0.2) | (0.3) | (0.3) |
Settlements | 0 | (12.7) | 0 |
Total recognized in other comprehensive income | (0.5) | (4.8) | (12.9) |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 7.2 | 11.9 | (8.4) |
Pension and other postretirement plan service cost | 7.7 | 16.7 | 4.5 |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net loss (gain) | (0.1) | (0.6) | 0.1 |
Prior service cost | 0 | 0 | 0 |
Amortization of net loss | 0 | 0 | 0 |
Amortization of prior service cost | (0.2) | (0.1) | (0.1) |
Settlements | 0 | 0 | 0 |
Total recognized in other comprehensive income | (0.3) | (0.7) | 0 |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | 0.1 | (0.4) | 0.3 |
Pension and other postretirement plan service cost | 0.4 | 0.3 | 0.3 |
Power Systems | Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension and other postretirement plan service cost | $ 0.8 | $ 0.9 | $ 1 |
Pensions and Postretirement _10
Pensions and Postretirement Benefits - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plan | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 | |||
Discount rate | 3.375% | 4.375% | 3.75% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 | |||
Discount rate | 4.375% | 4.00% | 4.25% |
Expected long-term return on plan assets | 6.00% | 6.00% | 7.25% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Other Benefits | |||
Weighted-Average Assumptions Used to Determine Benefit Obligations at December 31 | |||
Discount rate | 3.375% | 4.375% | 3.75% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31 | |||
Discount rate | 4.375% | 3.75% | 4.25% |
Expected long-term return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 4.00% | 4.00% | 4.00% |
Pensions and Postretirement _11
Pensions and Postretirement Benefits - Schedule of Assumed Health Care Cost Trend Rates (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Health care cost trend rate assumed for next year | 8.00% | 8.00% |
Rate to which the cost trend rate is assumed to decline (the ultimate rate) | 4.50% | 4.50% |
Pensions and Postretirement _12
Pensions and Postretirement Benefits - Schedule of Asset Allocation for Pension Plans and Target Allocation by Asset Category (Detail) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 100.00% | |
Plan Assets | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 30.00% | |
Plan Assets | 29.00% | 27.00% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target Allocation | 70.00% | |
Plan Assets | 71.00% | 73.00% |
Pensions and Postretirement _13
Pensions and Postretirement Benefits - Schedule of Fair Value of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan investment | $ 313.5 | $ 267.6 |
Mutual funds – U.S. equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan investment | 55.7 | 42.7 |
Mutual funds – international equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan investment | 35.9 | 29.5 |
Mutual funds - fixed income treasury and money market | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan investment | 221.1 | 194.6 |
Cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan investment | $ 0.8 | $ 0.8 |
Pensions and Postretirement _14
Pensions and Postretirement Benefits - Schedule of Benefit Payments Reflecting Expected Future Service as Appropriate Expected to be Paid (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 12.4 |
2021 | 13.6 |
2022 | 14.6 |
2023 | 16.1 |
2024 | 17.3 |
Years 2025 – 2029 | 99.8 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 0.2 |
2021 | 1.4 |
2022 | 0.3 |
2023 | 0.2 |
2024 | 0.2 |
Years 2025 – 2029 | $ 0.7 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions | Mar. 18, 2020 | Feb. 29, 2020 | Mar. 09, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2015 |
Share Repurchases [Line Items] | |||||||||
Dividends paid | $ 20,900,000 | $ 20,300,000 | $ 19,000,000 | ||||||
Cash dividends per share (in dollars per share) | $ 1 | $ 0.96 | $ 0.88 | ||||||
Stock repurchase program, period in force | 2 years | ||||||||
Authorized amount (up to) | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||
Shares repurchases (in shares) | 0.2 | 0.7 | 0.2 | ||||||
Repurchase of common stock | $ 15,000,000 | $ 50,000,000 | $ 11,500,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | $ 35,000,000 | ||||||||
Subsequent Event | |||||||||
Share Repurchases [Line Items] | |||||||||
Cash dividend declared (in dollars per share) | $ 0.26 | ||||||||
Repurchase of common stock | $ 1,600,000 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 33,400,000 | ||||||||
Forecast | |||||||||
Share Repurchases [Line Items] | |||||||||
Cash dividends per share (in dollars per share) | $ 0.26 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Summary of Changes in Accumulated Other Comprehensive Loss by Components (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Accumulated Other Comprehinsive Income [Roll Forward] | ||||
Beginning balance | $ 857.7 | $ 902.8 | $ 358.5 | |
Other comprehensive income (loss) before reclassifications | 15.3 | (10.9) | 17.6 | |
Amounts reclassified from accumulated other comprehensive loss | 5.3 | 13.8 | 4.9 | |
Net current-period other comprehensive income (loss) | 20.6 | 2.9 | 22.5 | |
Ending balance | 886.9 | 857.7 | 902.8 | |
Unrealized Translation Adjustments | ||||
Accumulated Other Comprehinsive Income [Roll Forward] | ||||
Beginning balance | (10.6) | (6.8) | (21.2) | |
Adoption of new accounting standard | $ 0 | |||
Adjusted balance at December 31, 2018 | (10.6) | |||
Other comprehensive income (loss) before reclassifications | 20.4 | (3.8) | 14.4 | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 | |
Net current-period other comprehensive income (loss) | 20.4 | (3.8) | 14.4 | |
Ending balance | 9.8 | (10.6) | (6.8) | |
Pension and Other Postretirement Plans | ||||
Accumulated Other Comprehinsive Income [Roll Forward] | ||||
Beginning balance | (34.9) | (41.6) | (49.7) | |
Adoption of new accounting standard | (11.5) | |||
Adjusted balance at December 31, 2018 | (46.4) | |||
Other comprehensive income (loss) before reclassifications | (5.1) | (7.1) | 3.2 | |
Amounts reclassified from accumulated other comprehensive loss | 5.3 | 13.8 | 4.9 | |
Net current-period other comprehensive income (loss) | 0.2 | 6.7 | 8.1 | |
Ending balance | (46.2) | (34.9) | (41.6) | |
Total | ||||
Accumulated Other Comprehinsive Income [Roll Forward] | ||||
Beginning balance | (45.5) | (48.4) | (70.9) | |
Adoption of new accounting standard | $ (11.5) | |||
Adjusted balance at December 31, 2018 | (57) | |||
Net current-period other comprehensive income (loss) | 20.6 | 2.9 | 22.5 | |
Ending balance | $ (36.4) | $ (45.5) | $ (48.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | $ (34.1) | $ (43.4) | $ (9.2) |
Income from continuing operations before income taxes | 4.3 | 15.1 | 546 |
Income tax expense | 3.5 | (19.8) | (28.1) |
Net income | 38.3 | 19.6 | 539.8 |
Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Income from continuing operations before income taxes | 7 | 18.2 | 7.7 |
Income tax expense | (1.7) | (4.4) | (2.8) |
Net income | 5.3 | 13.8 | 4.9 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Amortization of actuarial losses | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | 6.6 | 5.1 | 7.3 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Amortization of prior service costs | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | 0.4 | 0.4 | 0.4 |
Amount Reclassified from Accumulated Other Comprehensive Loss | Settlement loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||
Other expense, net | $ 0 | $ 12.7 | $ 0 |
Equity Compensation Plan - Addi
Equity Compensation Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for issuance (in shares up to) | 6,200,000 | ||
Shares available for future awards (in shares) | 800,000 | ||
Percentage of fair market value on the date of grant | 100.00% | ||
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Unrecognized compensation cost | $ 5,500,000 | ||
Unrecognized compensation cost expected to be recognized over a weighted average period, years | 1 year 3 months 18 days | ||
Award performance period | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 3,800,000 | ||
Unrecognized compensation cost expected to be recognized over a weighted average period, years | 1 year 4 months 24 days | ||
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 700,000 | ||
Expiration period | 10 years | ||
Non-Employee Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Cash payments to settle phantom shares | $ 0 | $ 700,000 | $ 1,400,000 |
Non-Employee Director | Phantom Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of award received | 110,000 | 95,000 | 95,000 |
Compensation expense | $ 900,000 | $ 700,000 | $ 1,200,000 |
Equity Compensation Plan - Issu
Equity Compensation Plan - Issued Performance Share Awards to Eligible Participants (Details) | Feb. 11, 2019 | Feb. 12, 2018 | Feb. 13, 2017 |
Shares Granted February 11, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 34.36% | ||
Risk free interest rate | 2.53% | ||
Shares Granted February 12, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 34.90% | ||
Risk free interest rate | 1.92% | ||
Shares Granted February 13, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 34.86% | ||
Risk free interest rate | 1.45% | ||
Performance Shares | Shares Granted February 11, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 30.72% | ||
Annual expected dividend yield | 1.40% | ||
Risk free interest rate | 2.53% | ||
Performance Shares | Shares Granted February 12, 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 32.41% | ||
Annual expected dividend yield | 1.15% | ||
Risk free interest rate | 1.92% | ||
Performance Shares | Shares Granted February 13, 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected stock price volatility | 31.23% | ||
Annual expected dividend yield | 1.23% | ||
Risk free interest rate | 1.45% |
Equity Compensation Plan - Summ
Equity Compensation Plan - Summary of Restricted Share Units Activity, Performance Share Activity and Restricted Stock Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Share Units | |||
Shares | |||
Nonvested shares, Beginning Balance | 218,930 | 235,557 | 262,022 |
Granted, Shares | 78,576 | 73,817 | 77,120 |
Vested, Shares | (78,958) | (58,188) | (79,417) |
Forfeited, Shares | (6,830) | (19,853) | (17,607) |
Shares settled for cash, shares | (12,294) | (12,403) | (6,561) |
Nonvested Shares, Ending Balance | 199,424 | 218,930 | 235,557 |
Weighted- Average Grant Date Fair Value | |||
Nonvested, Beginning Balance (in dollars per share) | $ 63.46 | $ 57.87 | $ 59.43 |
Granted (in dollars per share) | 68.48 | 82.03 | 68.55 |
Vested (in dollars per share) | 44.44 | 63.64 | 64.16 |
Forfeited (in dollars per share) | 72.99 | 65.17 | 56.32 |
Shares settled for cash (in dollars per share) | 43.85 | 64.19 | 54.29 |
Nonvested, Ending Balance (in dollars per share) | $ 72.72 | $ 63.46 | $ 57.87 |
Performance Shares | |||
Shares | |||
Nonvested shares, Beginning Balance | 199,655 | 270,599 | 283,515 |
Granted, Shares | 116,342 | 77,076 | 84,534 |
Vested, Shares | (75,312) | (51,207) | (76,487) |
Forfeited, Shares | (12,130) | (25,142) | (8,823) |
Achievement level adjustment, shares | 24,105 | (71,671) | (12,140) |
Nonvested Shares, Ending Balance | 252,660 | 199,655 | 270,599 |
Weighted- Average Grant Date Fair Value | |||
Nonvested, Beginning Balance (in dollars per share) | $ 75.87 | $ 61.92 | $ 58.84 |
Granted (in dollars per share) | 77.15 | 93.61 | 76.93 |
Vested (in dollars per share) | 49.68 | 63.81 | 63.81 |
Forfeited (in dollars per share) | 82.26 | 65.14 | 61.43 |
Achievement level adjustment (in dollars per share) | 49.68 | 63.81 | 63.81 |
Nonvested, Ending Balance (in dollars per share) | $ 81.46 | $ 75.87 | $ 61.92 |
Equity Compensation Plan - Sche
Equity Compensation Plan - Schedule of Information With Respect to Stock Options (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Share Options Outstanding (in shares) | 59,124 | 18,187 |
Stock Options Exercisable (in shares) | 18,187 | |
Weighted Average Exercise Price (in dollars per share) | $ 58.91 | |
Weighted Average Remaining Contractual Life | 6 years 11 months 19 days | |
Under $60.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Share Options Outstanding (in shares) | 18,187 | |
Stock Options Exercisable (in shares) | 18,187 | |
Weighted Average Exercise Price (in dollars per share) | $ 42.24 | |
Weighted Average Remaining Contractual Life | 1 year 1 month 13 days | |
Over $60.00 | ||
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | ||
Share Options Outstanding (in shares) | 40,937 | |
Stock Options Exercisable (in shares) | 0 | |
Weighted Average Exercise Price (in dollars per share) | $ 66.31 | |
Weighted Average Remaining Contractual Life | 9 years 6 months 25 days |
Equity Compensation Plan Equity
Equity Compensation Plan Equity Compensation Plan - Estimated Fair Value of The Option Award (Details) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant date (in dollars per share) | $ 18.87 |
Employee Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Average expected term | 7 years |
Expected volatility | 29.68% |
Risk-free interest rate | 1.95% |
Expected dividend yield | 1.51% |
Equity Compensation Plan - Su_2
Equity Compensation Plan - Summary of Option Activity Under Plan (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share Options Outstanding | |
Beginning balance (in shares) | shares | 18,187 |
Granted (in shares) | shares | 40,937 |
Ending balance (in shares) | shares | 59,124 |
Weighted Average Exercise Price | |
Beginning Balance (in dollars per share) | $ / shares | $ 42.24 |
Granted (in dollars per share) | $ / shares | 66.31 |
Ending Balance (in dollars per share) | $ / shares | $ 58.91 |
Equity Compensation Plan - Sc_2
Equity Compensation Plan - Schedule of Intrinsic Value Related to Stock Options (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Options outstanding | $ 0.5 | $ 0.3 | $ 0.9 |
Options exercisable | 0.4 | 0.3 | 0.9 |
Options exercised | $ 0 | $ 0 | $ 2.2 |
Equity Compensation Plan - Sc_3
Equity Compensation Plan - Schedule of Equity Based Compensation (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Compensation expense | $ 6.8 | $ 6.5 | $ 9.5 |
Related income tax benefit | $ 2.2 | $ 1.9 | $ 3.6 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segment Information _2
Business Segment Information - Schedule of Segment Operating Results and Other Financial Data (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 286.5 | $ 299 | $ 317.2 | $ 303 | $ 290.7 | $ 326.7 | $ 340 | $ 316.7 | $ 1,205.7 | $ 1,274.1 | $ 1,101.4 |
Segment Profit | $ 98.1 | $ 97.7 | $ 108.5 | $ 99.5 | $ 89.7 | $ 109.5 | $ 106.9 | $ 112.4 | 403.8 | 418.5 | 385.4 |
Corporate expenses | 56.6 | 85.8 | 70.2 | ||||||||
Gain on reconsolidation of GST and OldCo | 0 | 0 | 534.4 | ||||||||
Other expense, net | (34.1) | (43.4) | (9.2) | ||||||||
Income from continuing operations before income taxes | 4.3 | 15.1 | 546 | ||||||||
Sealing Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 908 | 950.9 | |||||||||
Engineered Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 297.7 | 323.2 | |||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,209.8 | 1,278.3 | 1,105.4 | ||||||||
Segment Profit | 123.1 | 125.3 | 120.5 | ||||||||
Operating Segments | Sealing Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 911.5 | 954.4 | 804.3 | ||||||||
Segment Profit | 93.8 | 85.2 | 90.4 | ||||||||
Operating Segments | Engineered Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 298.3 | 323.9 | 301.1 | ||||||||
Segment Profit | 29.3 | 40.1 | 30.1 | ||||||||
Intersegment sales | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4.1 | 4.2 | 4 | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Corporate expenses | (36.4) | (34.9) | (36.3) | ||||||||
Segment Reconciling Items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Interest expense, net | (18.2) | (27.3) | (49.4) | ||||||||
Gain on reconsolidation of GST and OldCo | 0 | 0 | 534.4 | ||||||||
Other expense, net | $ (64.2) | $ (48) | $ (23.2) |
Business Segment Information _3
Business Segment Information - Schedule of Net Sales by Geographical Area (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 286.5 | $ 299 | $ 317.2 | $ 303 | $ 290.7 | $ 326.7 | $ 340 | $ 316.7 | $ 1,205.7 | $ 1,274.1 | $ 1,101.4 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 630.2 | 736.2 | 588.5 | ||||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 301.2 | 278.6 | 266.1 | ||||||||
Other foreign | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 274.3 | $ 259.3 | $ 246.8 |
Business Segment Information _4
Business Segment Information - Third Party Sales by Major End Market (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 286.5 | $ 299 | $ 317.2 | $ 303 | $ 290.7 | $ 326.7 | $ 340 | $ 316.7 | $ 1,205.7 | $ 1,274.1 | $ 1,101.4 |
Aerospace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 69.4 | 62.5 | |||||||||
Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 88.5 | 102.6 | |||||||||
Chemical and material processing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 97.4 | 104 | |||||||||
Food and pharmaceutical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 39.5 | 38.1 | |||||||||
General industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 270.1 | 273.5 | |||||||||
Medium-duty/heavy-duty truck | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 342.1 | 388.4 | |||||||||
Oil and gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 105.9 | 100.7 | |||||||||
Power generation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 57.2 | 69 | |||||||||
Semiconductors | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 115.7 | 113.7 | |||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 19.9 | 21.6 | |||||||||
Sealing Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 908 | 950.9 | |||||||||
Sealing Products | Aerospace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 57.4 | 54.1 | |||||||||
Sealing Products | Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 7 | 5.3 | |||||||||
Sealing Products | Chemical and material processing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 48 | 54.5 | |||||||||
Sealing Products | Food and pharmaceutical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 38.8 | 37.1 | |||||||||
Sealing Products | General industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 176.2 | 174.2 | |||||||||
Sealing Products | Medium-duty/heavy-duty truck | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 340.9 | 387.3 | |||||||||
Sealing Products | Oil and gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 62.4 | 53.9 | |||||||||
Sealing Products | Power generation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 47.7 | 57.8 | |||||||||
Sealing Products | Semiconductors | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 115.7 | 113.7 | |||||||||
Sealing Products | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 13.9 | 13 | |||||||||
Engineered Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 297.7 | 323.2 | |||||||||
Engineered Products | Aerospace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 12 | 8.4 | |||||||||
Engineered Products | Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 81.5 | 97.3 | |||||||||
Engineered Products | Chemical and material processing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 49.4 | 49.5 | |||||||||
Engineered Products | Food and pharmaceutical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0.7 | 1 | |||||||||
Engineered Products | General industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 93.9 | 99.3 | |||||||||
Engineered Products | Medium-duty/heavy-duty truck | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1.2 | 1.1 | |||||||||
Engineered Products | Oil and gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 43.5 | 46.8 | |||||||||
Engineered Products | Power generation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 9.5 | 11.2 | |||||||||
Engineered Products | Semiconductors | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 0 | 0 | |||||||||
Engineered Products | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 6 | $ 8.6 |
Business Segment Information _5
Business Segment Information - Schedule of Segment Related Capital Expenditure, Depreciation and Amortization on those Expenditures (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | |||
Capital Expenditures | $ 21.6 | $ 36.1 | $ 30.3 |
Depreciation and Amortization Expense | 67.9 | 66.1 | 58.6 |
Sealing Products | |||
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | |||
Capital Expenditures | 14.2 | 26 | 20.4 |
Depreciation and Amortization Expense | 53.1 | 50.7 | 41.8 |
Engineered Products | |||
Segment Related Capital Expenditure And Depreciation And Amortization On Those Expenditures [Line Items] | |||
Capital Expenditures | 7.4 | 10.1 | 9.9 |
Depreciation and Amortization Expense | $ 14.8 | $ 15.4 | $ 16.8 |
Business Segment Information _6
Business Segment Information - Schedule of Assets and Long Lived Assets Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Assets By Segment [Line Items] | ||
Assets | $ 2,035.1 | $ 1,715.8 |
Long-Lived Assets | 218.8 | 234.3 |
United States | ||
Schedule Of Assets By Segment [Line Items] | ||
Long-Lived Assets | 130.1 | 145 |
France | ||
Schedule Of Assets By Segment [Line Items] | ||
Long-Lived Assets | 24.2 | 26 |
Other Europe | ||
Schedule Of Assets By Segment [Line Items] | ||
Long-Lived Assets | 20.7 | 21.9 |
Other foreign | ||
Schedule Of Assets By Segment [Line Items] | ||
Long-Lived Assets | 43.8 | 41.4 |
Continuing Operations | Operating Segments | Sealing Products | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | 1,337.6 | 1,008.8 |
Continuing Operations | Operating Segments | Engineered Products | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | 238.3 | 220.6 |
Continuing Operations | Corporate | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | 205.1 | 220.3 |
Discontinued operations | Operating Segments | ||
Schedule Of Assets By Segment [Line Items] | ||
Assets | $ 254.1 | $ 266.1 |
Subsidiary Asbestos Bankruptc_3
Subsidiary Asbestos Bankruptcies - Additional Information (Details) $ / shares in Units, $ in Millions | Dec. 01, 2017USD ($) | Aug. 11, 2017USD ($) | Aug. 31, 2018USD ($) | Dec. 31, 2019USD ($)facility$ / shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 11, 2016 |
ReorganizationItems [Line Items] | |||||||
Strike price (in dollars per share) | $ / shares | $ 1 | ||||||
Accrual payments | $ 78.8 | $ 0.5 | $ 0 | $ 0.5 | $ 95.5 | ||
Payments, future interest requirements | 1.2 | ||||||
Discount rate | 4.50% | ||||||
GST, LLC | |||||||
ReorganizationItems [Line Items] | |||||||
Accrual payments | $ 16.7 | ||||||
New Coltec | |||||||
ReorganizationItems [Line Items] | |||||||
Equity settlement alternatives | $ 20 | ||||||
Affiliated Entity | GST, LLC | |||||||
ReorganizationItems [Line Items] | |||||||
Number of manufacturing facilities operated | facility | 5 |
Subsidiary Asbestos Bankruptc_4
Subsidiary Asbestos Bankruptcies - Reconsolidation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reorganizations [Abstract] | |||
Post-reconsolidation sales | $ 76.1 | ||
Post-reconsolidation income | 5.2 | ||
Pro forma net sales | 1,191 | ||
Pro forma net income from continuing operations | $ 33.1 | ||
Pro forma earnings per share from continuing operations - basic (in dollars per share) | $ 1.55 | ||
Pro forma earnings per share from continuing operations - diluted (in dollars per share) | $ 1.52 | ||
Pre-tax nonrecurring expenses | $ 4.1 | ||
ProForma asbestos credits | 16.7 | ||
Credit for insurance reimbursements | 24.7 | ||
Pretax gain | $ 0 | $ 0 | 534.4 |
Gain on revaluation of investment in GST and OldCo | 248.3 | ||
Elimination of net amounts payable to GST and OldCo at reconsolidation date | 286.1 | ||
Total | $ 0 | $ 0 | $ 534.4 |
Subsidiary Asbestos Bankruptc_5
Subsidiary Asbestos Bankruptcies - Schedule of Amounts Included in Financial Statements Arising from Transactions with GST (Details) $ in Millions | 7 Months Ended |
Jul. 30, 2017USD ($) | |
Net sales | |
Related Party Transaction [Line Items] | |
Sales to GST | $ 18.8 |
Cost of sales | |
Related Party Transaction [Line Items] | |
Purchases from GST | 12.2 |
Interest expense | |
Related Party Transaction [Line Items] | |
Interest expense to GST | $ 20.6 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) € in Millions | Jun. 30, 2018party | Oct. 31, 2016USD ($) | Nov. 30, 2016EUR (€) | Aug. 31, 2016sampling_eventresidence | May 31, 2007site | Mar. 03, 2020USD ($) | Dec. 31, 2019USD ($)sitemi | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2016USD ($)mine | Dec. 31, 2019USD ($)sitemi | Dec. 31, 2018EUR (€) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)sitemi | Dec. 31, 2019EUR (€)sitemi | Oct. 31, 2019USD ($)property | Jan. 31, 2019property | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 15, 2015mine | Apr. 30, 2015USD ($) | Dec. 31, 2014USD ($)mi | Feb. 19, 2014mine |
Site Contingency [Line Items] | ||||||||||||||||||||||||
Number of sites subject to remediation | site | 19 | 19 | 19 | 19 | ||||||||||||||||||||
Number of sites subject to remediation activities, cost in excess of 100K | site | 17 | 17 | 17 | 17 | ||||||||||||||||||||
Cost per site minimis threshold | $ 100,000 | |||||||||||||||||||||||
Number of sites subject to remediation activities, discontinued operations | site | 17 | 17 | 17 | 17 | ||||||||||||||||||||
Number of sites subject to remediation activities, active operations | site | 2 | 2 | 2 | 2 | ||||||||||||||||||||
Number of sites, investigation completed | site | 16 | 16 | 16 | 16 | ||||||||||||||||||||
Number of sites investigation in progress | site | 3 | 3 | 3 | 3 | ||||||||||||||||||||
Number of sites remediation for soil and groundwater contamination | site | 14 | 14 | 14 | 14 | ||||||||||||||||||||
Environmental | $ 36,000,000 | $ 30,600,000 | $ 36,000,000 | $ 36,000,000 | ||||||||||||||||||||
Provision for new losses | 1,000,000 | $ 1,900,000 | $ 1,100,000 | $ 800,000 | ||||||||||||||||||||
Number of sites | site | 2 | |||||||||||||||||||||||
Portion of site subject to remediation | mi | 9 | 9 | 9 | 9 | 8 | |||||||||||||||||||
Number of potentially responsible parties | 120 | 70 | ||||||||||||||||||||||
Estimate of cost | $ 726,000,000 | |||||||||||||||||||||||
Estimate low end | $ 165,000,000 | |||||||||||||||||||||||
Estimated design development time | 4 years | |||||||||||||||||||||||
Investigate sites notice from EPA | mine | 8 | |||||||||||||||||||||||
Accrual component amount | $ 2,100,000 | $ 2,100,000 | $ 2,100,000 | |||||||||||||||||||||
Number of residences above applicable screening levels | residence | 3 | |||||||||||||||||||||||
Number of sampling events below applicable screening levels | sampling_event | 2 | |||||||||||||||||||||||
Loss contingency percentage of damages allocated to company | 65.00% | |||||||||||||||||||||||
Loss contingency percentage of damages allocated to counterparty | 35.00% | |||||||||||||||||||||||
Insurance Recoveries | 22,000,000 | |||||||||||||||||||||||
Loss contingency, estimated insurance recoveries | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||||||||||
Estimated insurance recoveries | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||||||||||||||
Lower Passaic River Study Area, Focused Feasibility Study, April 11, 2014 | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Environmental | 2,800,000 | 2,800,000 | 2,800,000 | $ 3,500,000 | ||||||||||||||||||||
Onondaga Site EPA Remedial Investigation | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Environmental | 10,000,000 | 10,000,000 | 10,000,000 | |||||||||||||||||||||
Provision for new losses | $ 3,500,000 | |||||||||||||||||||||||
Coltec Industries Inc. | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Environmental | 9,200,000 | 9,200,000 | 9,200,000 | $ 1,300,000 | ||||||||||||||||||||
Provision for new losses | $ 3,500,000 | $ 5,700,000 | ||||||||||||||||||||||
Estimate of possible loss | $ 3,000,000 | |||||||||||||||||||||||
Minimum | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Loss exposure in excess of accrual | € | € 7.9 | |||||||||||||||||||||||
Estimate of loss exposure in excess of accrual | € | 1.8 | € 5.1 | ||||||||||||||||||||||
Loss accrual | € | € 0.4 | |||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Loss exposure in excess of accrual | € | 10.2 | |||||||||||||||||||||||
Estimate of loss exposure in excess of accrual | € | € 2.1 | € 6.6 | ||||||||||||||||||||||
Arizona | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Investigate sites notice from EPA | mine | 6 | 2 | ||||||||||||||||||||||
MISSISSIPPI | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Provision for new losses | 4,700,000 | |||||||||||||||||||||||
Number of property owners | property | 27 | 27 | ||||||||||||||||||||||
Crucible Steel Corporation | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Environmental | $ 1,100,000 | |||||||||||||||||||||||
OldCo | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Estimated insurance recoveries | 25,000,000 | 25,000,000 | 25,000,000 | |||||||||||||||||||||
Environmental Remediation | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Loss in period | 700,000 | |||||||||||||||||||||||
Asbestos Issue | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Insurance coverage amount | 6,700,000 | 6,700,000 | 6,700,000 | |||||||||||||||||||||
Estimated insurance recoveries, next twelve months | 6,700,000 | 6,700,000 | 6,700,000 | |||||||||||||||||||||
Asbestos Issue | GST, LLC | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Amount recovered | $ 8,800,000 | $ 8,800,000 | $ 8,800,000 | |||||||||||||||||||||
Subsequent Event | Coltec Industries Inc. | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Payments | $ 4,500,000 | |||||||||||||||||||||||
Affiliated Entity | Crucible Steel Corporation | ||||||||||||||||||||||||
Site Contingency [Line Items] | ||||||||||||||||||||||||
Portion of site subject to remediation | mi | 17 | 17 | 17 | 17 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Changes in Carrying Amount of Product Warranty Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance at beginning of year | $ 9.4 | $ 2.7 | $ 2.5 |
Charges to expense | 5.8 | 10.1 | 2.5 |
Settlements made | (5.1) | (3.4) | (2.3) |
Balance at end of year | $ 10.1 | $ 9.4 | $ 2.7 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data - Schedule of Selected Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Net sales | $ 286.5 | $ 299 | $ 317.2 | $ 303 | $ 290.7 | $ 326.7 | $ 340 | $ 316.7 | $ 1,205.7 | $ 1,274.1 | $ 1,101.4 |
Gross profit | 98.1 | 97.7 | 108.5 | 99.5 | 89.7 | 109.5 | 106.9 | 112.4 | 403.8 | 418.5 | 385.4 |
Income (loss) from continuing operations | (8.2) | (8.4) | 16.6 | 7.8 | (39.8) | 17.1 | 8.8 | 9.2 | 7.8 | (4.7) | 517.9 |
Income from discontinued operations, net of taxes | 11 | 6.9 | 7.3 | 5.3 | 12.7 | 7.1 | 1.1 | 3.4 | 30.5 | 24.3 | 21.9 |
Net income (loss) | $ 2.8 | $ (1.5) | $ 23.9 | $ 13.1 | $ (27.1) | $ 24.2 | $ 9.9 | $ 12.6 | $ 38.3 | $ 19.6 | $ 539.8 |
Basic earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | $ (0.40) | $ (0.41) | $ 0.81 | $ 0.37 | $ (1.92) | $ 0.83 | $ 0.42 | $ 0.43 | $ 0.38 | $ (0.22) | $ 24.25 |
Discontinued operations (in dollars per share) | 0.54 | 0.33 | 0.35 | 0.26 | 0.61 | 0.34 | 0.05 | 0.16 | 1.48 | 1.16 | 1.03 |
Net income (in dollars per share) | 0.14 | (0.08) | 1.16 | 0.63 | (1.31) | 1.17 | 0.47 | 0.59 | 1.86 | 0.94 | 25.28 |
Diluted earnings (loss) per share: | |||||||||||
Continuing operations (in dollars per share) | (0.40) | (0.41) | 0.80 | 0.37 | (1.92) | 0.82 | 0.42 | 0.42 | 0.38 | (0.22) | 23.76 |
Discontinued operations (in dollars per share) | 0.54 | 0.33 | 0.35 | 0.26 | 0.61 | 0.34 | 0.05 | 0.16 | 1.47 | 1.16 | 1 |
Net income per share (in dollars per share) | $ 0.14 | $ (0.08) | $ 1.15 | $ 0.63 | $ (1.31) | $ 1.16 | $ 0.47 | $ 0.58 | $ 1.85 | $ 0.94 | $ 24.76 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, Beginning of Year | $ 3.3 | $ 4.2 | $ 4.7 |
Charge (credit) to Expense | 0.8 | (0.6) | 0.9 |
Write-off of Receivables/Expiration of Net Operating Losses | (0.1) | (0.4) | (1.6) |
Other | (0.3) | 0.1 | 0.2 |
Balance, End of Year | 3.7 | 3.3 | 4.2 |
Deferred Income Tax Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance, Beginning of Year | 23.9 | 25.7 | 20.2 |
Charge (credit) to Expense | (15.3) | (1.4) | 1.2 |
Write-off of Receivables/Expiration of Net Operating Losses | 0 | 0 | (0.1) |
Other | (0.7) | (0.4) | 4.4 |
Balance, End of Year | $ 7.9 | $ 23.9 | $ 25.7 |