Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |
Document Type | S4 |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2017 |
Trading Symbol | pkoh |
Entity Registrant Name | PARK OHIO INDUSTRIES INC/OH |
Entity Central Index Key | 1,068,148 |
Entity Filer Category | Non-accelerated Filer |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 57.9 | $ 54.4 | $ 48.4 |
Accounts receivable, net | 225.9 | 194.4 | 199.3 |
Inventories, net | 248.6 | 240.6 | 249 |
Receivable from affiliates | 14.9 | 12.8 | 8.6 |
Other current assets | 56 | 53.3 | 39 |
Total current assets | 603.3 | 555.5 | 544.3 |
Property, plant and equipment, net | 171.3 | 169.6 | 154.1 |
Goodwill | 87.1 | 86.6 | 82 |
Intangible assets, net | 95.1 | 96.6 | 92.8 |
Pension assets | 61.7 | 58.9 | |
Other long-term assets | 73.6 | 71.3 | |
Other long-term assets | 73.6 | 9.6 | 7.5 |
Total assets | 1,030.4 | 979.6 | 939.6 |
Current liabilities: | |||
Trade accounts payable | 154.5 | 133.7 | 129.7 |
Payable to affiliates | 7 | 7 | 6.6 |
Current portion of long-term debt and short-term debt | 29.7 | 30.8 | 17.8 |
Accrued employee compensation | 18.8 | 26.1 | |
Other accrued expenses | 59.8 | 51.4 | |
Accrued expenses and other | 87.2 | 78.6 | 77.5 |
Total current liabilities | 278.4 | 250.1 | 231.6 |
Long-term liabilities, less current portion: | |||
Debt | 452 | 439 | 445.8 |
Deferred income taxes | 29.3 | 29 | 21.4 |
Other long-term liabilities | 22.4 | 29.8 | 38.5 |
Total long-term liabilities | 503.7 | 497.8 | 505.7 |
Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity: | |||
Common stock, par value $1 per share | 0 | 0 | 0 |
Additional paid-in capital | 106.3 | 96.8 | |
Retained earnings | 158.1 | 128.6 | |
Accumulated other comprehensive loss | (42.7) | (30) | |
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 238 | 221.7 | 195.4 |
Noncontrolling interests | 10.3 | 10 | 6.9 |
Total equity | 248.3 | 231.7 | 202.3 |
Total liabilities and shareholder's equity | $ 1,030.4 | $ 979.6 | $ 939.6 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 4 | $ 3.3 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||
Net sales | $ 343.8 | $ 328 | $ 1,276.9 | $ 1,463.8 | $ 1,378.7 |
Cost of sales | 288.3 | 280.2 | 1,073.9 | 1,228.6 | 1,144.2 |
Gross profit | 55.5 | 47.8 | 203 | 235.2 | 234.5 |
Selling, general and administrative expenses | 36.6 | 32.4 | 128.9 | 134.4 | 135.6 |
Litigation settlement gain | (3.3) | 0 | |||
Asset impairment charge | 0 | 4 | 4 | 0 | 0 |
Litigation judgment costs | 0 | 2.2 | 0 | ||
Operating income | 22.2 | 11.4 | 70.1 | 98.6 | 98.9 |
Interest expense | 7.4 | 7.1 | 28.2 | 27.9 | 26.1 |
Income before income taxes | 14.8 | 4.3 | 41.9 | 70.7 | 72.8 |
Income tax expense | 4.7 | 1.6 | 9.2 | 21.5 | 25.2 |
Net income | 10.1 | 2.7 | 32.7 | 49.2 | 47.6 |
Net income attributable to noncontrolling interests | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Net income attributable to ParkOhio common shareholder | $ 9.8 | $ 2.7 | $ 32.2 | $ 48.6 | $ 46.3 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 10.1 | $ 2.7 | $ 32.7 | $ 49.2 | $ 47.6 |
Other comprehensive income (loss): | |||||
Foreign currency translation adjustment | 3.9 | 2.6 | (13.9) | (11.8) | (7.9) |
Pension and other postretirement benefit adjustments, net of tax | 0.2 | 0.2 | 1.2 | (4.2) | (9.5) |
Total other comprehensive (loss) income | 4.1 | 2.8 | (12.7) | (16) | (17.4) |
Comprehensive income (loss), net of tax | 14.2 | 5.5 | 20 | 33.2 | 30.2 |
Comprehensive income attributable to noncontrolling interests | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Comprehensive income attributable to ParkOhio common shareholder | $ 13.9 | $ 5.5 | $ 19.5 | $ 32.6 | $ 28.9 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity - USD ($) $ in Millions | Total | Common stock | Additional Paid-In Capital | Retained Earnings(Deficit) | Total | Noncontrolling Interest |
Beginning balance at Dec. 31, 2013 | $ 150.6 | $ 0 | $ 81.5 | $ 60.7 | $ 3.4 | $ 5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 30.2 | 46.3 | (17.4) | 1.3 | ||
Share-based compensation | 5.8 | 5.8 | ||||
Dividend paid to parent | (10) | (10) | ||||
Income tax effect of share-based compensation exercises and vesting | 1.3 | 1.3 | ||||
Ending balance at Dec. 31, 2014 | 177.9 | 0 | 88.6 | 97 | (14) | 6.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 33.2 | 48.6 | (16) | 0.6 | ||
Share-based compensation | 7.3 | 7.3 | ||||
Dividend paid to parent | (17) | (17) | ||||
Income tax effect of share-based compensation exercises and vesting | 0.9 | 0.9 | ||||
Ending balance at Dec. 31, 2015 | 202.3 | 0 | 96.8 | 128.6 | (30) | 6.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 5.5 | |||||
Ending balance at Mar. 31, 2016 | (27.2) | |||||
Beginning balance at Dec. 31, 2015 | 202.3 | 0 | 96.8 | 128.6 | (30) | 6.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 20 | 32.2 | (12.7) | 0.5 | ||
Share-based compensation | 10.6 | 10.6 | ||||
Dividend paid to parent | (2.5) | (2.5) | ||||
Income tax effect of share-based compensation exercises and vesting | (0.6) | (0.6) | ||||
Acquisition | 2.1 | 2.1 | ||||
Other | (0.2) | (0.5) | (0.2) | 0.5 | ||
Ending balance at Dec. 31, 2016 | 231.7 | $ 0 | $ 106.3 | $ 158.1 | (42.7) | $ 10 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income (loss) | 14.2 | |||||
Ending balance at Mar. 31, 2017 | $ 248.3 | $ (38.6) |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | |||||
Net income | $ 10.1 | $ 2.7 | $ 32.7 | $ 49.2 | $ 47.6 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||||
Depreciation and amortization | 7.8 | 7.4 | 29.6 | 27.9 | 22.4 |
Litigation settlement gain | (3.3) | 0 | |||
Asset impairment charge | 0 | 4 | 4 | 0 | 0 |
Share-based compensation expense | 2.2 | 2.5 | 10.6 | 7.3 | 5.8 |
Deferred income taxes | 2.1 | 3.1 | 0.6 | ||
Other | 0 | 0 | (0.9) | ||
Changes in operating assets and liabilities: | |||||
Accounts receivable | (30) | (11.6) | 13.7 | 3.8 | (27.9) |
Inventories | (6.5) | (3.5) | 8.6 | (15.4) | (8.7) |
Prepaid and other current assets | (5.5) | 8.8 | (14.7) | ||
Other current assets | (2.3) | (2.6) | |||
Accounts payable and accrued expenses | 27.3 | 16.8 | (7.6) | (39.1) | 29.4 |
Other noncurrent liabilities | (6.7) | (12.8) | 10.1 | ||
Litigation settlement payment | (4) | 0 | |||
Other | (3.5) | (5.7) | (10) | 4.4 | (7.8) |
Net cash (used) provided by operating activities | (2.2) | 10 | 71.5 | 37.2 | 55.9 |
INVESTING ACTIVITIES | |||||
Purchases of property, plant and equipment | (6.1) | (8.9) | (28.5) | (36.5) | (25.8) |
Proceeds from sale of assets | 0 | 0 | 2.1 | ||
Business acquisitions, net of cash acquired | (23.4) | 0 | (72.7) | ||
Net cash used by investing activities | (6.1) | (8.9) | (51.9) | (36.5) | (96.4) |
FINANCING ACTIVITIES | |||||
Proceeds from (payments on) revolving credit facility, net | 13 | (4.5) | (36.2) | 7.9 | 50.3 |
Payments on term loans and other debt | (3) | (1.1) | (4.5) | (3.6) | (6.6) |
Proceeds from other long-term debt | 0 | 4.7 | 34.9 | 2.3 | 14.2 |
Proceeds from (payments on) capital lease facilities, net | 1.1 | (0.7) | (1.2) | 13.8 | 0 |
Dividend paid to parent | (2.5) | (17) | (10) | ||
Income tax effect of share-based compensation exercises and vesting | (0.6) | 0.9 | 1.3 | ||
Payment of acquisition earn-out | (2) | 0 | 0 | ||
Other | 0 | 0 | (1.3) | ||
Net cash (used) provided by financing activities | 11.1 | (1.6) | (12.1) | 4.3 | 47.9 |
Effect of exchange rate changes on cash | 0.7 | 0.8 | (1.5) | (4.9) | (2.8) |
Increase in cash and cash equivalents | 3.5 | 0.3 | 6 | 0.1 | 4.6 |
Cash and cash equivalents at beginning of period | 54.4 | 48.4 | 48.4 | 48.3 | 43.7 |
Cash and cash equivalents at end of period | $ 57.9 | $ 48.7 | 54.4 | 48.4 | 48.3 |
Income taxes paid | 8.7 | 19 | 25.8 | ||
Interest paid | $ 25.9 | $ 25.7 | $ 24 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 — Summary of Significant Accounting Policies Consolidation and Basis of Presentation: off-balance Accounting Estimates: Cash Equivalents: Inventories: first-in, first-out Major Classes of Inventories December 31, 2016 December 31, 2015 (In millions) Finished goods $ 131.4 $ 147.5 Work in process 43.4 37.4 Raw materials and supplies 65.8 64.1 Inventories, net $ 240.6 $ 249.0 Other inventory items Inventory reserves $ (30.2 ) $ 29.0 Consigned Inventory $ 12.2 $ 10.3 Property, Plant and Equipment: The following table summarizes property, plant and equipment: December 31, 2016 December 31, 2015 (In millions) Property, plant and equipment: Land and land improvements $ 11.3 $ 8.5 Buildings 77.0 65.3 Machinery and equipment 316.1 309.5 Leased property under capital leases 20.4 16.2 Total property, plant and equipment 424.8 399.5 Less accumulated depreciation 255.2 245.4 Property, plant and equipment, net $ 169.6 $ 154.1 Information regarding depreciation expense of property, plant and equipment follows: Year Ended December 31, 2016 2015 2014 (In millions) Depreciation expense $ 23.5 $ 21.5 $ 17.6 Impairment of Long-Lived Assets: Goodwill and Indefinite-Lived Assets: Intangibles — Goodwill and Other . See Notes 4 and 5 of the consolidated financial statements for additional disclosure on goodwill and indefinite-lived intangibles. Fair Values of Financial Instruments: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 6) approximate fair value at December 31, 2016 and December 31, 2015 because of the short-term nature of these instruments. The fair values of long-term debt and pension plan assets are disclosed in Note 6 and Note 11, respectively. The Company has not changed its valuation techniques for measuring fair value during 2016 , and there were no transfers between levels during the periods presented. Income Taxes: Share-Based Compensation: Park-Ohio Holdings Corp. (“Holdings”) grants share-based compensation awards to Industries’ employees. In accordance with ASC 718, such costs are allocated to Industries. Under the provisions of Holdings’ 2015 Equity and Incentive Compensation Plan (“2015 Plan”), which is administered by the Compensation Committee of Holdings’ Board of Directors, incentive stock options, non-statutory Revenue Recognition: Cost of Sales Accounts Receivable and Allowance for Doubtful Accounts: Concentration of Credit Risk: Environmental: Foreign Currency Translation: year-end Warranties: fluid routing solutions business. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents the changes in the Company’s product warranty liability: Year Ended December 31, 2016 2015 2014 (In millions) Balance at January 1, $ 6.1 $ 6.9 $ 5.4 Claims paid during the year (3.7 ) (4.7 ) (2.9 ) Warranty expense 2.0 4.0 4.0 Acquired warranty liabilities 2.8 — — Other (0.1 ) (0.1 ) 0.4 Balance at December 31, $ 7.1 $ 6.1 $ 6.9 Accounting Pronouncements Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, In May 2015, the FASB issued ASU No. 2015-07, Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, 2014-09, In January 2016, the FASB issued ASU 2016-1, 825-10): In February 2016, the FASB issued ASU 2016-02, right-of-use In March 2016, the FASB issued ASU 2016-09, as classification of related amounts within the statement of cash flows. The ASU is effective for fiscal years beginning with the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In October 2016, the FASB issued ASU 2016-16, No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Segments
Segments | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
Segments | NOTE 3 — Segments Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs, certain non-cash Results by business segment were as follows: Three Months Ended March 31, 2017 2016 (In millions) Net sales: Supply Technologies $ 133.2 $ 129.9 Assembly Components 139.3 131.7 Engineered Products 71.3 66.4 $ 343.8 $ 328.0 Segment operating income: Supply Technologies $ 11.3 $ 10.2 Assembly Components 12.5 10.2 Engineered Products 1.7 1.4 Total segment operating income 25.5 21.8 Corporate costs (6.6 ) (6.4 ) Litigation settlement gain 3.3 — Asset impairment charge — (4.0 ) Operating income 22.2 11.4 Interest expense (7.4 ) (7.1 ) Income before income taxes $ 14.8 $ 4.3 | NOTE 2 — Segments The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides our customers with Total Supply Management™ services for a broad range of high-volume, specialty production components. Assembly Components manufactures cast aluminum components, automotive and industrial rubber and thermoplastic products, gasoline direct injection systems, fuel filler and hydraulic assemblies for automotive, agricultural equipment, construction equipment, heavy-duty truck and marine equipment industries, and also provides value-added services such as design and engineering, machining and assembly. Engineered Products operates a diverse group of niche manufacturing businesses that design and manufacture a broad range of high quality products engineered for specific customer applications. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; non-cash Results by business segment were as follows: Year Ended December 31, 2016 2015 2014 (In millions) Net sales: Supply Technologies $ 502.1 $ 578.7 $ 559.6 Assembly Components 529.4 569.2 490.5 Engineered Products 245.4 315.9 328.6 $ 1,276.9 $ 1,463.8 $ 1,378.7 Segment operating income: Supply Technologies $ 40.0 $ 50.3 $ 42.5 Assembly Components 50.5 57.9 42.0 Engineered Products 10.6 20.9 42.7 Total segment operating income 101.1 129.1 127.2 Corporate costs (27.0 ) (28.3 ) (28.3 ) Asset impairment charge (4.0 ) — — Litigation judgment costs — (2.2 ) — Interest expense (28.2 ) (27.9 ) (26.1 ) Income before income taxes $ 41.9 $ 70.7 $ 72.8 Year Ended December 31, 2016 2015 2014 (In millions) Capital expenditures: Supply Technologies $ 6.1 $ 3.7 $ 5.8 Assembly Components 16.9 27.3 14.0 Engineered Products 5.5 5.5 2.4 Corporate — — 1.5 $ 28.5 $ 36.5 $ 23.7 Depreciation and amortization expense: Supply Technologies $ 4.7 $ 4.7 $ 4.5 Assembly Components 20.1 18.6 14.2 Engineered Products 4.1 4.2 3.3 Corporate 0.7 0.4 0.4 $ 29.6 $ 27.9 $ 22.4 Identifiable assets: Supply Technologies $ 262.0 $ 276.3 $ 277.6 Assembly Components 332.9 344.8 340.5 Engineered Products 304.9 243.1 246.9 Corporate 79.8 75.4 93.8 $ 979.6 $ 939.6 $ 958.8 The percentage of net sales by product line included in each segment was as follows: Year Ended December 31, 2016 2015 2014 Supply Technologies: Supply Technologies 85 % 87 % 88 % Engineered specialty products 15 % 13 % 12 % 100 % 100 % 100 % Assembly Components: Fuel, rubber and plastic products 67 % 59 % 57 % Aluminum products 33 % 41 % 43 % 100 % 100 % 100 % Engineered Products: Industrial equipment business 79 % 81 % 78 % Forged and machined products 21 % 19 % 22 % 100 % 100 % 100 % The Company’s approximate percentage of net sales by geographic region was as follows: Year Ended December 31, 2016 2015 2014 United States 71 % 72 % 74 % Asia 8 % 8 % 6 % Europe 8 % 7 % 6 % Canada 6 % 6 % 7 % Mexico 6 % 6 % 5 % Other 1 % 1 % 2 % 100 % 100 % 100 % The basis for attributing revenue to individual geographic regions is customer location. At December 31, 2016, 2015 and 2014, approximately 68%, 71% and 72%, respectively, of the Company’s assets were located in the United States. |
Acquisition
Acquisition | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Business Combinations [Abstract] | ||
Acquisition | NOTE 4 — Acquisition In December 2016, the Company acquired all the outstanding capital stock of GH Electrotermia S.A. (“GH”), headquartered in Valencia, Spain, for $23.4 million in cash (net of $6.3 million cash acquired), plus the assumption of $13.9 million in debt. The allocation of the purchase price, which is materially unchanged from December 31, 2016, is subject to finalization of the Company’s determination of the fair value of assets acquired and liabilities assumed as of the acquisition date. The Company has not yet finalized its analysis of the fair value of property, plant and equipment; intangible assets; noncontrolling interests; deferred taxes and certain other assets and liabilities. The final allocation is expected to be completed as soon as practicable but no later than twelve months after the acquisition date. In addition, the purchase agreement stipulates potential contingent consideration of up to $2.1 million based on achievement of certain EBITDA targets for 2016 and 2017. The estimated fair value of the contingent consideration, valued using level 3 inputs, was approximately $1.1 million as of March 31, 2017 and December 31, 2016. | NOTE 3 — Acquisitions In December 2016, the Company acquired all the outstanding capital stock of GH Electrotermia S.A. (“GH”), headquartered in Valencia, Spain, for $23.4 million in cash (net of $6.3 million cash acquired), plus the assumption of $13.9 million in debt. GH, which had 2016 revenues of approximately $55 million , is a global leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions; operates through its locations in Spain, India, Germany, China and the United States; and strengthens our position as the global leader of induction products and adds key technologies to our already diverse portfolio of induction hardening capabilities. The purchase agreement provides payment of contingent consideration of up to $2.1 million based on achievement of certain EBITDA targets over 2016 and 2017. The estimated fair value of the earn-out, The allocation of the purchase price is subject to finalization of the Company’s determination of the fair value of assets acquired and liabilities assumed as of the acquisition date and could materially differ from those presented above. The Company has not yet finalized its analysis of the fair value of property, plant and equipment; intangible assets; noncontrolling interest, deferred taxes and certain other assets and liabilities. The final allocation is expected to be completed as soon as practicable but no later than twelve months after the acquisition date. Below is the estimated purchase price allocation related to the acquisition of GH: (In millions) Net assets acquired $ 24.7 Goodwill 6.1 Total consideration 30.8 Less: Cash acquired (6.3 ) Contingent consideration (1.1 ) Cash paid for acquisition, net of cash acquired $ 23.4 In December 2014, the Company acquired all the outstanding capital stock of Saet S.p.A. (“Saet”) for $ 22.1 million in cash. Saet is a leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions through its locations in Italy, China, India and Tennessee. The financial results of Saet are included in the Company’s Engineered Products segment from the date of acquisition. In October 2014, the Company acquired all the outstanding capital stock of Autoform Tool and Manufacturing (“Autoform”) for a total purchase consideration of $48.9 million in cash. The acquisition was funded from borrowings under the revolving credit facility provided by the Credit Agreement. Autoform is a supplier of high pressure fuel lines and fuel rails used in Gasoline Direct Injection systems across a large number of engine platforms. Autoform’s production facilities are located in Indiana. The financial results of Autoform are included in the Company’s Assembly Components segment from the date of acquisition. In June 2014, the Company acquired all the outstanding capital stock of Apollo Aerospace Group (“Apollo”) for $ 6.5 million, net of cash acquired. Apollo is a supply chain management services company providing Class C production components and supply chain solutions to aerospace customers worldwide. The financial results of Apollo are included in the Company’s Supply Technologies segment from the date of acquisition. The Apollo purchase agreement provided for potential payment of contingent consideration of up to $2.4 million based on achievement of certain EBITDA targets over two years . In the third quarter of 2016, the Company paid $2.0 million for this earn-out. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 4 — Goodwill The changes in the carrying amount of goodwill by reportable segment: Supply Technologies Assembly Components Engineered Products Total (In millions) Balance at January 1, 2014 $ 6.4 $ 49.0 $ 5.0 $ 60.4 Acquisitions 0.7 5.0 23.2 28.9 Foreign currency translation 0.5 — (0.3 ) 0.2 Balance at December 31, 2014 7.6 54.0 27.9 89.5 Acquisition adjustments — 0.1 (6.3 ) (6.2 ) Foreign currency translation (0.4 ) — (0.9 ) (1.3 ) Balance at December 31, 2015 7.2 54.1 20.7 82.0 GH acquisition — — 6.1 6.1 Foreign currency translation (1.1 ) — (0.4 ) (1.5 ) Balance at December 31, 2016 $ 6.1 $ 54.1 $ 26.4 $ 86.6 Goodwill associated with the GH, Apollo and Saet acquisitions is not deductible for income tax purposes. Acquisition adjustments in 2015 relate primarily to measurement period adjustments to the valuation of the Saet acquisition from 2014. The 2014 consolidated financial statements have not been retroactively adjusted as these measurement period adjustments did not have a material impact on such statements. The 2014 increase relates to the acquisitions of Apollo, Autoform and Saet. |
Other Intangible Assets
Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | NOTE 5 — Other Intangible Assets Information regarding other intangible assets follows: December 31, 2016 December 31, 2015 Weighted Average Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value (In millions) Customer relationships 11.1 years $ 75.5 $ 23.7 $ 51.8 $ 76.0 $ 18.5 $ 57.5 Indefinite-lived tradenames * 22.4 * 22.4 18.7 * 18.7 Technology 18.6 years 23.0 1.8 21.2 15.9 0.9 15.0 Other 8.2 years 4.0 2.8 1.2 4.1 2.5 1.6 Total $ 124.9 $ 28.3 $ 96.6 $ 114.7 $ 21.9 $ 92.8 * Not applicable. Tradenames have an indefinite life. As part of the GH acquisition, we acquired an estimated $7.5 million of technology and $4.4 million of indefinite-lived tradename assets. As described in Note 3, the fair value of these intangible assets is subject to the finalization of the fair value analysis, expected to be completed no later than twelve months after the acquisition date. Amortization expense of other intangible assets follows: Year Ended December 31, 2016 2015 2014 (In millions) Amortization expense $ 6.1 $ 6.4 $ 4.8 We estimate amortization expense for the five years subsequent to December 31, 2016 as follows: (In millions) 2017 $ 6.6 2018 $ 6.4 2019 $ 6.0 2020 $ 5.8 2021 $ 5.8 |
Financing Arrangements
Financing Arrangements | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Financing Arrangements | NOTE 8 — Financing Arrangements Long-term debt consists of the following: Carrying Value at Maturity Date Interest March 31, March 31, 2017 December 31, 2016 (In millions) Senior Notes due 2021 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility July 31, 2019 4.10 % 145.8 132.8 Term Loan July 31, 2019 3.00 % 22.3 23.4 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 26.7 26.4 Capital Leases Various Various 19.9 18.8 Other Various Various 22.0 23.6 Gross debt 486.7 475.0 Less current portion of long-term debt (25.3 ) (25.8 ) Less short-term debt (4.4 ) (5.0 ) Less unamortized debt issuance costs (5.0 ) (5.2 ) Total long-term debt, net $ 452.0 $ 439.0 See Note 15 - Subsequent Events for a discussion of the Company’s refinancing of its Senior Notes (as defined below) and Amended Credit Agreement (as described below), and the repayment of its term loan on April 17, 2017. On December 21, 2016, the Company, through its subsidiary, IEGE Industrial Equipment Holding Company Limited, entered into a financing agreement with Banco Bolbao Vizcaya Argentaria, S.A. The financing agreement provides the Company the ability to borrow up to $36.9 million , including a loan for $26.4 million for the acquisition of GH as well as a revolving credit facility for up to $10.5 million to fund working capital and general corporate needs. The full amount of the loan is outstanding as of March 31, 2017; no amounts have been drawn on the $10.5 million revolving credit facility as of March 31, 2017. On April 22, 2016, the Company further amended its revolving credit facility (the “Amended Credit Agreement”) to • increase the revolving credit facility to $300.0 million; • increase the inventory advance rate from 50% to 65%, reducing back to 50% on a pro-rata • reload the term loan up to $35.0 million, of which $22.3 million has been borrowed and is outstanding as of March 31, 2017; • increase the Canadian sub-limit • increase the European sub-limit • provide minor pricing adjustments including pricing the first $35.0 million drawn on the revolving credit facility at LIBOR plus 3.50%, reducing automatically on a pro-rata Under the Amended Credit Agreement, a detailed borrowing base formula provides borrowing availability to the Company based on percentages of eligible accounts receivable and inventory. At the Company’s election, domestic amounts borrowed under the Amended Credit Agreement may be borrowed at either: LIBOR plus 1.5% to 2.5% ; or the bank’s prime lending rate minus 0.25% to 1.25% . The LIBOR-based interest rate is dependent on the Company’s debt service coverage ratio, as defined in the Amended Credit Agreement. Amounts borrowed under the sub-limit On October 21, 2015, the Company, through its Southwest Steel Processing LLC subsidiary, entered into a financing agreement with the Arkansas Development Finance Authority. The financing agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The financing agreement matures in September 2025. The Company had $6.1 million of borrowings outstanding under this agreement as of March 31, 2017. On August 13, 2015, the Company entered into a Capital Lease Agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for capital leases. Capital lease obligations of $19.9 million were borrowed under the Lease Agreement to acquire machinery and equipment as of March 31, 2017. The term loan is amortized based on a seven -year schedule with the balance due at maturity (July 31, 2019). At the Company’s election, amounts borrowed under the term loan may be borrowed at either: LIBOR plus 2.0% to 3.0%; or the bank’s prime lending rate minus 0.75% to plus 0.25% . The following table represents fair value information of the Company’s 8.125% Senior Notes due 2021 (the “Senior Notes”), classified as Level 1 using estimated quoted market prices. March 31, 2017 December 31, 2016 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 258.0 $ 257.5 | NOTE 6 — Financing Arrangements Long-term debt consists of the following: Carrying Value at Maturity Date Interest Rate at December 31, 2016 December 31, 2016 December 31, 2015 (In millions) Senior Notes April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility July 31, 2019 2.80 % 132.8 169.0 Term loan July 31, 2019 2.88 % 23.4 27.9 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 26.4 — Capital leases Various Various 18.8 17.7 Other Various Various 23.6 3.5 Gross debt 475.0 468.1 Less current portion of long-term debt (25.8 ) (17.8 ) Less short-term debt (5.0 ) — Less unamortized debt issuance costs (1) (5.2 ) (4.5 ) Total long-term debt, net $ 439.0 $ 445.8 (1) Prior to the adoption of ASU 2015-03 On December 21, 2016, the Company, through its subsidiary, Industrial Equipment Group European Holding Company Limited subsidiary, entered into a financing agreement with Banco Bolbao Vizcaya Argentaria, S.A. The financing agreement provides the Company the ability to borrow up to $36.9 million , including a loan for $26.4 million for the acquisition of GH as well as a revolving credit facility for up to $10.5 million to fund working capital and general corporate needs. The full amount of the loan is outstanding as of December 31, 2016; no amounts have been drawn on the revolving credit facility as of December 31, 2016. In addition to the Agreement, the Company also assumed long-term debt of $8.9 million and short-term debt of $5.0 million as part of the GH acquisition. On April 22, 2016, the Company further amended its credit facility (the “Amended Credit Agreement”) to: • increase the revolving credit facility to $300.0 million; • increases the inventory advance rate from 50% to 60% , reducing back to 50% on a pro-rata • reload the term loan up to $35.0 million , of which $23.4 million has been borrowed and is outstanding as of December 31, 2016; • increases the Canadian sub-limit • increases the European sub-limit • provide minor pricing adjustments including pricing the first $35.0 million drawn on the revolver at LIBOR + 3.50%, reducing automatically on a pro-rata Under the Amended Credit Agreement, a detailed borrowing base formula provides borrowing availability to the Company based on percentages of eligible accounts receivable and inventory. At the Company’s election, domestic amounts borrowed under the revolving credit facility may be borrowed at either: LIBOR plus 1.5% to 2.5% ; or the bank’s prime lending rate minus 0.25% to 1.25%. The LIBOR-based interest rate is dependent on the Company’s debt service coverage ratio, as defined in the Amended Credit Agreement. Amounts borrowed under the Canadian revolving credit facility provided by the Amended Credit Agreement may be borrowed at either: the Canadian deposit offered rate plus 1.5% to 2.5%; the Canadian prime lending rate plus 0.0% to 1.0%; or the US base rate plus 0.0% to 1.0%. On October 21, 2015, the Company, through its subsidiary, Southwest Steel Processing LLC, entered into a financing agreement with the Arkansas Development Finance Authority. The agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The loan matures in September 2025. The Company has borrowed $6.2 million under this agreement as of December 31, 2016. On August 13, 2015, the Company entered into a capital lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for capital leases. See Note 10 for additional disclosure. The term loan is amortized based on a seven -year schedule with the balance due at maturity (July 31, 2019). The Amended Credit Agreement also reduced the commitment fee for the revolving credit facility. At the Company’s election, amounts borrowed under the term loan may be borrowed at either: LIBOR plus 2.0% to 3.0%; or the bank’s prime lending rate minus 0.75% to plus 0.25%. At December 31, 2016, the Company had approximately $106.2 million of unused borrowing capacity under the revolving credit facility. The following table represents fair value information of the Company’s senior notes due 2021 (the “Senior Notes”), classified as Level 1, at December 31, 2016 and 2015. The fair value was estimated using quoted market prices. December 31, 2016 December 31, 2015 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 257.5 $ 263.4 Maturities of short-term and long-term debt, excluding capital leases, during each of the five years subsequent to December 31, 2016 are as follows: (In millions) 2017 $ 24.7 2018 $ 20.8 2019 $ 138.4 2020 $ 8.1 2021 $ 263.1 Foreign subsidiaries of the Company had $42.4 million of borrowings at December 31, 2016 and $0.8 million at December 31, 2015 and outstanding bank guarantees of approximately $ 9.9 million and $ 3.9 million at December 31, 2016 and 2015, respectively, under their credit arrangements. The Senior Notes are general unsecured senior obligations of the Company and are fully and unconditionally guaranteed on a joint and several basis by all material 100% owned domestic subsidiaries of the Company. Provisions of the indenture governing the Senior Notes and the Credit Agreement contain restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to make certain payments, investments, loans and guarantees and to sell or otherwise dispose of a substantial portion of assets or to merge or consolidate with an unaffiliated entity. At December 31, 2016, the Company was in compliance with all financial covenants of the Credit Agreement. The weighted average interest rate on all debt was 5.73% at December 31, 2016 and 5.47% at December 31, 2015. |
Income Taxes
Income Taxes | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Income Taxes | NOTE 7 — Income Taxes The Company’s tax provision for interim periods is determined using an estimate of its annual effective income tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimated annual effective income tax rate, and if the estimated income tax rate changes, a cumulative adjustment is made. The effective income tax rates for the first three months of 2017 and 2016 were 31.8% and 37.2%, respectively. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. It is reasonably possible that, within the next twelve months, the amount of gross unrecognized tax benefits could be reduced by approximately $1.4 million as a result of the closure of tax statutes related to existing uncertain tax positions. | NOTE 7 — Income Taxes Income before income taxes consists of the following: Year Ended December 31, 2016 2015 2014 (In millions) United States $ 16.3 $ 44.9 $ 54.3 Outside the United States 25.6 25.8 18.5 $ 41.9 $ 70.7 $ 72.8 Income taxes consists of the following: Year Ended December 31, 2016 2015 2014 (In millions) Current expense: Federal $ 0.3 $ 11.7 $ 17.6 State 0.2 0.7 0.8 Foreign 6.6 6.0 6.2 7.1 18.4 24.6 Deferred expense (benefit): Federal 0.9 2.9 1.1 State 0.5 0.6 (0.8 ) Foreign 0.7 (0.4 ) 0.3 2.1 3.1 0.6 Income tax expense $ 9.2 $ 21.5 $ 25.2 A reconciliation of income tax expense computed by applying the statutory federal income tax rate to income before income taxes as recorded is as follows: Year Ended December 31, 2016 2015 2014 (In millions) Tax at U.S. statutory rate $ 14.7 $ 24.7 $ 25.4 Effect of state income taxes, net 0.2 0.6 1.4 Effect of foreign operations (2.1 ) (1.6 ) (0.9 ) Valuation allowance 0.5 (0.7 ) (1.1 ) Uncertain tax positions (4.0 ) 0.1 0.3 Non-deductible 0.6 0.5 1.0 Non-deductible 0.8 1.2 0.8 Manufacturer’s deduction (0.5 ) (1.1 ) (1.4 ) Other, net (1.0 ) (2.2 ) (0.3 ) Total $ 9.2 $ 21.5 $ 25.2 Significant components of the Company’s net deferred income tax assets and liabilities are as follows: Year Ended December 31, 2016 2015 (In millions) Deferred income tax assets: Postretirement benefit obligation $ 3.6 $ 4.8 Inventory 13.7 12.0 Net operating loss and credit carryforwards 10.8 6.1 Warranty reserve 2.1 1.9 Accrued litigation 2.8 2.9 Compensation 4.1 6.0 Other 9.8 10.1 Total deferred income tax assets 46.9 43.8 Deferred income tax liabilities: Depreciation and amortization 16.0 15.2 Pension 22.1 21.0 Intangible assets 23.3 19.3 Other 5.2 1.6 Total deferred income tax liabilities 66.6 57.1 Net deferred income tax liabilities prior to valuation allowances (19.7 ) (13.3 ) Valuation allowances (5.3 ) (4.8 ) Net deferred income tax liability $ (25.0 ) $ (18.1 ) At December 31, 2016 , the Company has U.S., state and foreign net operating loss carryforwards for income tax purposes. The foreign net operating loss carryforward is $22.1 million , of which $5.5 million expires between 2017 and 2036 and the remainder has no expiration date. The Company has a tax benefit from a state net operating loss carryforward of $2.7 million that expires between 2017 and 2036 . The Company also has a tax benefit from a non-consolidated As of December 31, 2016 and 2015 , the Company was not in a cumulative three -year loss position and it was determined that it was more likely than not that its U.S. deferred tax assets will be realized. As of December 31, 2014, the Company reversed a valuation allowance of $1.3 million against its state net operating loss carryforward. As of December 31, 2016 and 2015 , the Company recorded valuation allowances of $4.5 million and $4.2 million , respectively, against certain foreign net deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including reversals of deferred tax liabilities). The Company reviews all valuation allowances related to deferred tax assets and will reverse these valuation allowances, partially or totally, when appropriate under ASC 740. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 (In millions) Unrecognized Tax Benefit — January 1, $ 6.3 $ 6.5 $ 5.9 Gross Increases to Tax Positions Related to Prior Years 0.3 0.3 0.8 Gross Decreases to Tax Positions Related to Prior Years — (0.1 ) (0.2 ) Expiration of Statute of Limitations (3.7 ) (0.4 ) — Unrecognized Tax Benefit — December 31, $ 2.9 $ 6.3 $ 6.5 The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $2.4 million at December 31, 2016 and $5.5 million at December 31, 2015. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2016 and 2015, the Company recognized approximately $(1.4) million and $0.2 million , respectively, in net interest and penalties. The Company had approximately $0.4 million and $1.9 million for the payment of interest and penalties accrued at December 31, 2016 and 2015, respectively. It is reasonably possible that within the next twelve months the amount of gross unrecognized tax benefits could be reduced by approximately $1.4 million as a result of the closure of tax statutes related to existing uncertain tax positions. The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company’s tax years for 2013 through 2016 remain open for examination by the Internal Revenue Service and 2012 through 2016 remain open for examination by various state and foreign taxing authorities. Deferred taxes have not been provided on approximately $131.1 million of undistributed earnings of the Company’s foreign subsidiaries as it is the Company’s policy and intent to permanently reinvest such earnings. The Company has determined that it is not practicable to determine the unrecognized tax liability on such undistributed earnings. |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-Based Compensation | NOTE 9 — Stock-Based Compensation There was no stock option activity for the three months ended March 31, 2017. A summary of Holdings’ restricted share activity for the three months ended March 31, 2017 is as follows: 2017 Time-Based Performance-Based Number Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (In whole shares) (In whole shares) Outstanding - beginning of year 216,916 $ 36.94 165,000 $ 34.78 Granted 15,500 42.60 — — Vested (9,499 ) 35.13 (55,000 ) 34.78 Performance-based to time-based (a) 110,000 34.78 (110,000 ) 34.78 Canceled or expired (2,000 ) 37.87 — — Outstanding - end of period 330,917 $ 36.53 — $ — (a) During the first quarter of 2017, 55,000 of the performance-based restricted shares granted in 2016 fully vested based on the achievement of the performance criteria. In accordance with the grant agreements, the remaining 110,000 shares became time-based, vesting over the remaining two years of the requisite service period. Total stock-based compensation expense included in selling, general and administrative expenses during the first three months of 2017 and 2016 was $2.2 million and $2.5 million , respectively. As of March 31, 2017 , there was $6.0 million of unrecognized compensation cost related to non-vested | NOTE 8 — Share-Based Compensation A summary of Holdings’ stock option activity as of December 31, 2016 and changes during the year then ended is presented below: 2016 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In whole shares) (In millions) Outstanding — beginning of year 60,000 $ 19.41 Granted — — Exercised (22,000 ) 19.60 Canceled or expired — — Outstanding — end of year 38,000 $ 19.30 1.1 years $ 0.9 Options exercisable 38,000 $ 19.30 1.1 years $ 0.9 Exercise prices for options outstanding as of December 31, 2016 range from $15.61 to $24.92. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $0.9 million, $3.3 million and $0.1 million, respectively. Net cash proceeds from the exercise of stock options were $0.5 million, $1.2 million and $0, respectively. There were no stock options awarded in 2016 , 2015 or 2014. A summary of Holdings’ restricted share and performance share activity for the year ended December 31, 2016 is as follows: 2016 Time-Based Performance-Based Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (In whole shares) (In whole shares) Outstanding — beginning of year 208,429 $ 36.61 120,000 $ 48.72 Granted (a) 58,570 30.72 165,000 34.78 Vested (126,083 ) 41.00 (40,000 ) 48.72 Performance- to time-based (b) 80,000 48.72 (80,000 ) 48.72 Canceled or expired (4,000 ) 36.34 — — Outstanding — end of year 216,916 $ 36.94 165,000 $ 34.78 (a) Included in the granted amount are 6,020 restricted share units (b) During the second quarter of 2016, 40,000 of the performance-based restricted shares granted in 2015 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 80,000 shares became time-based, vesting over the remaining two years of the requisite service period. During the first quarter of 2016, 1,500 shares were awarded, vested and expensed at the time of the award. The value of the award was immaterial. The Company recognized compensation expense of $10.6 million , $7.3 million and $5.8 million for the years ended December 31, 2016 , 2015 and 2014, respectively, relating to time-based shares and performance shares. The total fair value of restricted stock units vested during the years ended December 31, 2016 , 2015 and 2014 was $5.1 million, $9.0 million and $11.5 million, respectively. As of December 31, 2016, the Company had unrecognized compensation expense of $7.5 million , before taxes, related to stock option awards and restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of 1.4 years. The number of shares available for future grants for all Holdings’ plans at December 31, 2016 is 367,977. |
Commitments, Contingencies and
Commitments, Contingencies and Litigation Judgment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Commitments, Contingencies and Litigation Judgment | NOTE 10 — Commitments, Contingencies and Litigation Settlement The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. IPSCO Tubulars Inc. d/b/a TMK IPSCO sued Ajax Tocco Magnethermic Corporation (“ATM”), a subsidiary of the Company, in the United States District Court for the Eastern District of Arkansas claiming that equipment supplied by ATM for heat treating certain steel pipe at IPSCO’s Blytheville, Arkansas facility did not perform as required by the contract. The complaint alleged causes of action for breach of contract, gross negligence and constructive fraud. IPSCO sought approximately $10.0 million in damages plus an unspecified amount of punitive damages. In September 2013, the district court issued a judgment in favor of IPSCO in the amount of $5.2 million , which the Company recognized and accrued for at that time. In March 2016, the district court issued an order granting, in part, IPSCO’s motion for fees and costs and awarding $2.2 million to IPSCO, which the Company accrued for as of December 31, 2015. ATM filed a third appeal of that decision. On March 28, 2017, the Company and IPSCO agreed to a settlement and release of all claims for the payment by the Company of $4.0 million to IPSCO, which was made in March 2017. As of the settlement date, the Company had $7.3 million accrued for this matter. The Company reversed the excess liability and recognized $3.3 million in income in the first quarter of 2017. Our subsidiaries are involved in a number of contractual and warranty related disputes. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. In August 2013, the Company received a subpoena from the staff of the Securities and Exchange Commission (“SEC”) in connection with the staff’s investigation of a third party. At that time, the Company also learned that the U.S. Department of Justice (“DOJ”) is conducting a criminal investigation of the third party. In connection with its initial response to the staff’s subpoena, the Company disclosed to the staff of the SEC that, in November 2007, the third party participated in a payment on behalf of the Company to a foreign tax official that implicates the Foreign Corrupt Practices Act. The Board of Directors formed a special committee to review the Company’s transactions with the third party and to make any recommendations to the Board of Directors with respect thereto. The Company intends to cooperate fully with the SEC and the DOJ in connection with their investigations of the third party and with the SEC in light of the Company’s disclosure. The Company is unable to predict the outcome or impact of the special committee’s investigation or the length, scope or results of the SEC’s review or the impact on its results of operations. | NOTE 9 — Commitments, Contingencies and Litigation Judgment The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. Although the Company cannot precisely predict the amount of any liability that may ultimately arise with respect to any of these matters, the Company records provisions when it considers the liability probable and reasonably estimable. Our provisions are based on historical experience and legal advice, reviewed quarterly and adjusted according to developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments about potential actions by third parties, such as regulators, courts, and state and federal legislatures. Changes in the amounts of our loss provisions, which can be material, affect our financial condition. Due to the inherent uncertainties in the process undertaken to estimate potential losses, we are unable to estimate an additional range of loss in excess of our accruals. While it is reasonably possible that such excess liabilities, if they were to occur, could be material to operating results in any given quarter or year of their recognition, we do not believe that it is reasonably possible that such excess liabilities would have a material adverse effect on our long-term results of operations, liquidity or consolidated financial position. Our subsidiaries are involved in a number of contractual and warranty related disputes. At this time, we cannot reasonably determine the probability of a loss, and the timing and amount of loss, if any, cannot be reasonably estimated. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. IPSCO Tubulars Inc. d/b/a TMK IPSCO sued Ajax Tocco Magnethermic Corporation (“ATM”), a subsidiary of Industries, in the United States District Court for the Eastern District of Arkansas claiming that equipment supplied by ATM for heat treating certain steel pipe at IPSCO’s Blytheville, Arkansas facility did not perform as required by the contract. The complaint alleged causes of action for breach of contract, gross negligence and constructive fraud. IPSCO sought approximately $10 million in damages plus an unspecified amount of punitive damages. ATM denied the allegations. ATM subsequently obtained summary judgment on the constructive fraud claim, which was dismissed by the district court prior to trial. The remaining claims were the subject of a bench trial that occurred in May 2013. After IPSCO presented its case, the district court entered partial judgment in favor of ATM, dismissing the gross negligence claim, a portion of the breach of contract claim, and any claim for punitive damages. The trial proceeded with respect to the remainder of IPSCO’s claim for breach of contract. In September 2013, the district court issued a judgment in favor of IPSCO in the amount of $5.2 million, which the Company recognized and accrued for at that time. IPSCO subsequently filed a motion seeking to recover $3.8 million in attorneys’ fees and costs. The district court reserved ruling on that issue pending an appeal. In October 2013, ATM filed an appeal with the U.S. Court of Appeals for the Eighth Circuit seeking reversal of the judgment in favor of IPSCO. In November 2013, IPSCO filed a cross-appeal seeking reversal of the dismissal of its claim for gross negligence and punitive damages. The Eighth Circuit issued an opinion in March 2015 affirming in part, reversing in part, and remanding the case. It affirmed the district court’s determination that ATM was liable for breach of contract. It also affirmed the district court’s dismissal of IPSCO’s claim for gross negligence and punitive damages. However, the Eighth Circuit reversed nearly all of the damages awarded by the district court and remanded for further findings on the issue of damages, including whether consequential damages are barred under the express language of the contract. Because IPSCO did not appeal the award of $5.2 million in its favor, those damages could be decreased, but could not be increased, on remand. On remand, the district court entered an order once again awarding IPSCO $5.2 million . In December 2015, ATM filed a second appeal with the Eighth Circuit seeking reversal of the damages award. That appeal is pending. In March 2016, the district court issued an order granting, in part, IPSCO’s motion for fees and costs and awarding $2.2 million to IPSCO, which the Company accrued for as of December 31, 2015. ATM filed a third appeal of that decision. As of December 31, 2016, the Company had $7.4 million accrued for this matter. In August 2013, we received a subpoena from the staff of the SEC in connection with the staff’s investigation of a third party. At that time, we also learned that the Department of Justice (“DOJ”) is conducting a criminal investigation of the third party. In connection with its initial response to the staff’s subpoena, we disclosed to the staff of the SEC that, in November 2007, the third party participated in a payment on behalf of us to a foreign tax official that implicates the Foreign Corrupt Practices Act. The Board of Directors formed a special committee to review our transactions with the third party and to make any recommendations to the Board of Directors with respect thereto. The Company intends to cooperate fully with the SEC and the DOJ in connection with their investigations of the third party and with the SEC in light of the Company’s disclosure. The Company is unable to predict the outcome or impact of the special committee’s investigation or the length, scope or results of the SEC’s review or the impact on its results of operations. |
Lease Arrangements
Lease Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Lease Arrangements | NOTE 10 — Lease Arrangements Future minimum lease commitments during each of the five years following December 31, 2016 and thereafter are as follows: (In millions) Capital Leases Operating leases 2017 $ 6.6 $ 15.8 2018 4.3 11.9 2019 4.3 8.0 2020 3.9 5.4 2021 0.7 3.8 Thereafter — 17.6 Total minimum lease payments 19.8 $ 62.5 Amounts representing interest (1.0 ) Present value of minimum lease payments 18.8 Current maturities (6.1 ) Long-term capital lease obligation $ 12.7 Rental expense for 2016 , 2015 and 2014 was $18.5 million , $19.7 million and $18.6 million, respectively. Certain of the Company’s leases are with related parties at an annual rental expense of approximately $2.4 million . Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows. Assets recorded under capital leases are included in property, plant and equipment and consist of the following: December 31, 2016 December 31, 2015 Machinery and equipment $ 20.4 $ 16.2 Less accumulated depreciation 2.3 0.5 $ 18.1 $ 15.7 Amortization of machinery and equipment under capital leases is included in depreciation expense. Capital lease obligations of $18.8 million were borrowed from the $50.0 million Lease Agreement to acquire machinery and equipment during 2016. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Pension and Postretirement Benefits | NOTE 11 — Pension and Postretirement Benefits The components of net periodic benefit (income) costs recognized during interim periods were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2017 2016 2017 2016 (In millions) Service costs $ 0.6 $ 0.6 $ — $ — Interest costs 0.5 0.5 0.1 0.1 Expected return on plan assets (2.4 ) (2.4 ) — — Recognized net actuarial loss 0.3 0.3 — 0.1 Net periodic benefit (income) costs $ (1.0 ) $ (1.0 ) $ 0.1 $ 0.2 Weighted average: Discount rate 3.91 % 4.13 % 3.63 % 3.80 % Expected return on plan assets 8.25 % 8.25 % | NOTE 11 — Pensions and Postretirement Benefits The Company and its subsidiaries have pension plans, principally noncontributory defined benefit or noncontributory defined contribution plans, covering substantially all employees. In addition, the Company has an unfunded postretirement benefit plan. One of its defined benefit plans, covering most U.S. employees not covered by collective bargaining agreements, utilizes a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits that are based upon a percentage of current eligible earnings and current interest credits. For the remaining defined benefit plans, benefits are based on the employee’s years of service. For the defined contribution plans, the costs charged to operations and the amount funded are based upon a percentage of the covered employees’ compensation. The Company’s objective for the pension plan is to monitor the funded ratio; create general investment goals in regards to acceptable risk and liquidity needs ensuring the long-term interests of participants and beneficiaries are considered and manage risk by minimizing the short-term and long-term risk of actual expenses and contribution requirements. The following tables set forth the changes in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2016 and 2015: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 (In millions) Change in benefit obligation Benefit obligation at beginning of year $ 58.4 $ 61.1 $ 13.5 $ 17.0 Service cost 2.4 2.6 — — Interest cost 1.8 2.3 0.3 0.5 Actuarial losses (gains) 0.5 (3.0 ) (2.6 ) (2.7 ) Benefits and expenses paid, net of contributions (4.6 ) (4.6 ) (1.2 ) (1.3 ) Benefit obligation at end of year $ 58.5 $ 58.4 $ 10.0 $ 13.5 Change in plan assets Fair value of plan assets at beginning of year $ 117.3 $ 125.7 $ — $ — Actual return on plan assets 8.3 (2.9 ) — — Company contributions — — 1.2 1.3 Cash transfer to fund postretirement benefit payments (0.8 ) (0.9 ) — — Benefits and expenses paid, net of contributions (4.6 ) (4.6 ) (1.2 ) (1.3 ) Fair value of plan assets at end of year $ 120.2 $ 117.3 $ — $ — Funded (underfunded) status of the plans $ 61.7 $ 58.9 $ (10.0 ) $ (13.5 ) Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 (In millions) Pension assets $ 61.7 $ 58.9 $ — $ — Other current liabilities — — 1.2 1.4 Other long-term liabilities — — 8.8 12.1 $ 61.7 $ 58.9 $ 10.0 $ 13.5 Amounts recognized in Accumulated other comprehensive loss Net actuarial loss $ 25.8 $ 25.2 $ 1.7 $ 4.4 Net prior service cost (credit) 0.3 0.3 (0.2 ) (0.3 ) Accumulated other comprehensive loss $ 26.1 $ 25.5 $ 1.5 $ 4.1 The pension plan weighted-average asset allocation at December 31, 2016 and 2015 and target allocation for 2017 are as follows: Plan Assets Target 2017 2016 2015 Asset Category Equity securities 45-75 % 61.9 % 62.7 % Debt securities 20-40 % 24.6 % 25.4 % Other 0-20 % 13.5 % 11.9 % 100 % 100 % 100 % The following table sets forth, by level within the fair value hierarchy, the pension plans assets: 2016 2015 Level 1 Total (at Fair Value) Level 1 Total (at Fair Value) (In millions) Common stock $ 40.0 $ 40.0 $ 38.3 $ 38.3 Equity Funds 29.0 29.0 29.1 29.1 Foreign Stock 5.4 5.4 5.7 5.7 U.S. Government obligations 8.1 8.1 7.4 7.4 Fixed income funds 14.1 14.1 14.6 14.6 Corporate Bonds 6.3 6.3 6.8 6.8 Cash and Cash Equivalents 3.3 3.3 1.2 1.2 Total $ 106.2 $ 103.1 Investments measured at net asset value: Common collective trust 1.1 1.5 Hedge funds 12.9 12.7 Total assets at fair value $ 120.2 $ 117.3 The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31, and the measurement of the net periodic benefit cost in the following year. Weighted-Average assumptions as of December 31, Pension Benefits Postretirement Benefits 2016 2015 2014 2016 2015 2014 Discount rate 3.91 % 4.13 % 3.82 % 3.63 % 3.80 % 3.60 % Expected return on plan assets 8.25 % 8.25 % 8.25 % N/A N/A N/A Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Medical health care benefits rate increase N/A N/A N/A 6.50 % 6.75 % 7.00 % Medical drug benefits rate increase N/A N/A N/A 6.50 % 6.75 % 7.00 % Ultimate health care cost trend rate N/A N/A N/A 5.00 % 5.00 % 5.00 % Year of ultimate trend rate N/A N/A N/A 2025 2022 2022 In determining its expected return on plan assets assumption for the year ended December 31, 2016 , the Company considered historical experience, its asset allocation, expected future long-term rates of return for each major asset class, and an assumed long-term inflation rate. This assumption was supported by the asset return generation model, which projected future asset returns using simulation and asset class correlation. Effective December 31, 2015, the Company adopted a change in the method used to estimate the service and interest cost components of net periodic benefit cost for its defined benefit pension plans. Historically, the service and interest cost components were estimated using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. For 2016, the Company used a spot rate approach by applying the specific spot rates along the yield curve to the relevant projected cash flows in the estimation of the service and interest components of benefit cost, resulting in a more precise measurement. These spot rates were determined as of the measurement date of December 31, 2015. This change does not affect the measurement of total benefit obligations. The change was accounted for as a change in estimate and, accordingly, was accounted for prospectively starting in 2016. The spot rates used to determine service and interest costs ranged from 3.29% to 4.19% for the U.S. pension plan. The reductions in service and interest costs for 2016 associated with this change were $0.1 million and $0.5 million , respectively. Similar to the changes in the discount rate approach discussed for the pension plans above, effective December 31, 2015, we elected to use an approach that discounts the individual expected cash flows underlying interest and service costs using the applicable spot rates derived from the yield curve used to determine the benefit obligation to the relevant projected cash flows. The spot rates used to determine service and interest costs ranged from 2.93% to 4.43% for the postretirement benefit plans. The reductions in service and interest costs in 2016 associated with this change were $0.0 million and $0.1 million, respectively. Pension Benefits Postretirement Benefits 2016 2015 2014 2016 2015 2014 (In millions) Components of net periodic benefit cost Service costs $ 2.4 $ 2.6 $ 2.2 $ — $ — $ — Interest costs 1.8 2.3 2.2 0.3 0.6 0.6 Expected return on plan assets (9.4 ) (10.2 ) (10.1 ) — — — Amortization of prior service cost (credit) — — 0.1 (0.1 ) (0.1 ) (0.1 ) Recognized net actuarial loss 1.1 0.3 — 0.1 0.5 0.5 Benefit (income) costs $ (4.1 ) $ (5.0 ) $ (5.6 ) $ 0.3 $ 1.0 $ 1.0 Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss AOCI at beginning of year $ 25.5 $ 15.7 $ 2.2 $ 4.1 $ 7.2 $ 5.8 Net loss (gain) arising during the year 1.7 10.1 13.1 (2.6 ) (2.7 ) 1.8 Recognition of prior service credit — — — 0.1 0.1 0.1 Recognition of actuarial loss (1.1 ) (0.3 ) 0.4 (0.1 ) (0.5 ) (0.5 ) Total recognized in accumulated other comprehensive loss at end of year $ 26.1 $ 25.5 $ 15.7 $ 1.5 $ 4.1 $ 7.2 The estimated net loss, prior service cost and net transition obligation for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2017 is $1.1 million . The estimated net loss and prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2017 is less than $ 0.1 million. Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years: Postretirement Benefits Pension Benefits Gross Expected Medicare Subsidy Net including Medicare Subsidy (In millions) 2017 $ 4.7 $ 1.3 $ 0.2 $ 1.1 2018 4.4 1.2 0.2 1.0 2019 4.3 1.1 0.1 1.0 2020 4.5 1.0 0.1 0.9 2021 4.6 0.9 0.1 0.8 2022 to 2026 23.4 4.0 0.5 3.5 The Company has a postretirement benefit plan. Under the plan, health care benefits are provided on both a contributory and noncontributory basis. The assumed health care cost trend rate has a significant effect on the amounts reported. A one-percentage-point 1-Percentage Point Increase 1-Percentage Point Decrease (In millions) Effect on total of service and interest cost components in 2016 $ — $ — Effect on postretirement benefit obligation as of December 31, 2016 $ 0.7 $ (0.6 ) The Company expects to make no contributions to its defined benefit plans in 2017. In January 2008, a Supplemental Executive Retirement Plan (“SERP”) for the Company’s Chairman and Chief Executive Officer (“CEO”) was approved by the Compensation Committee of the Board of Directors of the Company. The SERP provides an annual supplemental retirement benefit for up to $0.4 million upon the CEO’s termination of employment with the Company. The vested retirement benefit will be equal to a percentage of the SERP that is equal to the ratio of (1) his credited service with the Company prior to January 1, 2008 (up to a maximum of thirteen years), plus his credited service after January 1, 2008 (up to a maximum of seven years) to (2) twenty years of credited service. In the event of a change in control before the CEO’s termination of employment, he will receive 100% of the SERP. The Company recorded income of $0.2 million in 2016 , and expense of $0.6 million in 2015 and $0.5 million in 2014 related to the SERP. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
Accumulated Other Comprehensive Income (Loss) | NOTE 12 — Accumulated Other Comprehensive Loss The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2017 and 2016 were as follows: Cumulative Translation Pension and Postretirement Total (In millions) January 1, 2017 $ (30.8 ) $ (11.9 ) $ (42.7 ) Foreign currency translation adjustments (a) 3.9 — 3.9 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2017 $ (26.9 ) $ (11.7 ) $ (38.6 ) January 1, 2016 $ (16.9 ) $ (13.1 ) $ (30.0 ) Foreign currency translation adjustments (a) 2.6 — 2.6 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2016 $ (14.3 ) $ (12.9 ) $ (27.2 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently re-invested. (b) The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. | NOTE 12 — Accumulated Other Comprehensive Income (Loss) The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2016 , 2015 , and 2014 were as follows: Cumulative Translation Pension and Postretirement Total (In millions) Balance at January 1, 2014 $ 2.8 $ 0.6 $ 3.4 Foreign currency translation adjustments (a) (7.9 ) — (7.9 ) Pension and OPEB activity, net of tax adjustments (b) — (9.5 ) (9.5 ) Balance at December 31, 2014 (5.1 ) (8.9 ) (14.0 ) Foreign currency translation adjustments (a) (11.8 ) — (11.8 ) Pension and OPEB activity, net of tax adjustments (b) — (4.2 ) (4.2 ) Balance at December 31, 2015 (16.9 ) (13.1 ) (30.0 ) Foreign currency translation adjustments (a) (13.9 ) — (13.9 ) Pension and OPEB activity, net of tax adjustments (b) — 1.2 1.2 Balance at December 31, 2016 $ (30.8 ) $ (11.9 ) $ (42.7 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. (b) The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. |
Subsequent Events
Subsequent Events | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Subsequent Events [Abstract] | ||
Subsequent Events | NOTE 15 — Subsequent Events On April 17, 2017, the Company completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes will be payable semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2017, and the Notes mature on April 15, 2027. The Notes are unsecured senior obligations of Park-Ohio and are guaranteed on an unsecured senior basis by the material domestic subsidiaries of Park-Ohio. The net proceeds from the issuance were used to repay in full the Senior Notes and the Company’s term loan under the Amended Credit Agreement, and to repay a portion of the borrowings outstanding under the Company’s revolving credit facility under the Amended Credit Agreement. On April 17, 2017, the Company also entered into a seventh amended and restated credit agreement (the “Further Amended Credit Agreement”) with a group of banks. The Further Amended Credit Agreement, among other things, provides an increased revolving credit facility of up to $350.0 million , extends the maturity date of borrowings under the facility to April 17, 2022. Furthermore, the Company has the option, pursuant to the Further Amended Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million. | NOTE 13 — Subsequent Events On January 31, 2017, the Holding’s Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend was paid on March 1, 2017, to shareholders of record as of the close of business on February 15, 2017 and resulted in a cash outlay of approximately $1.6 million. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Supplemental Guarantor Information [Abstract] | ||
Supplemental Guarantor Information | NOTE 14 — Supplemental Guarantor Information Each of the material domestic direct and indirect wholly-owned subsidiaries of the Company (the “Guarantor Subsidiaries”) has fully and unconditionally guaranteed, on a joint and several basis, to pay principal, premium, and interest with respect to the Company’s Senior Notes. Each of the Guarantor Subsidiaries is “100% owned,” as defined by Rule 3-10(h)(1) Regulation S-X. The guarantee of a Guarantor Subsidiary will automatically terminate, and the obligations of such Guarantor Subsidiary under its guarantee of Senior Notes will be released: (a) in the event of any sale or other disposition of all or substantially all of the assets or all of the capital stock of any Subsidiary Guarantor, by way of merger, consolidation or otherwise; (b) upon designation of any Subsidiary Guarantor as an “unrestricted subsidiary” (as defined in the indenture governing the Senior Notes (the “Indenture”); (c) upon defeasance or satisfaction and discharge of the Indenture; and (d) upon the release of such Subsidiary Guarantor’s guarantees under all credit facilities of the Company (other than a release as a result of payment under or a discharge of such guarantee). The following supplemental condensed consolidating financial statements present condensed consolidating balance sheets as of March 31, 2017 and December 31, 2016 , condensed consolidating statements of income and other comprehensive income (loss) for the three months ended March 31, 2017 and 2016 , condensed consolidating statements of cash flows for the three months ended March 31, 2017 and 2016 , and reclassification and elimination entries necessary to consolidate the Parent and all of its subsidiaries. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. The “Parent” reflected in the accompanying supplemental guarantor information is Park-Ohio Industries, Inc., who is also a guarantor. Condensed Consolidating Balance Sheets March 31, 2017 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 57.9 $ — $ 57.9 Accounts receivable, net — 153.3 72.6 — 225.9 Inventories, net — 173.8 74.8 — 248.6 Receivable from affiliates — — 14.9 — 14.9 Other current assets 1.4 32.3 22.3 — 56.0 Total current assets 1.4 359.4 242.5 — 603.3 Investments in subsidiaries 511.3 223.8 — (735.1 ) — Intercompany advances 298.4 78.5 111.3 (488.2 ) — Property, plant and equipment, net 6.1 98.9 66.3 — 171.3 Goodwill — 56.8 30.3 — 87.1 Intangible assets, net — 63.6 31.5 — 95.1 Other long-term assets 64.0 4.3 5.3 — 73.6 Total assets $ 881.2 $ 885.3 $ 487.2 $ (1,223.3 ) $ 1,030.4 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 117.3 $ 37.2 $ — $ 154.5 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.0 10.5 — 29.7 Accrued expenses and other 17.5 36.5 33.2 — 87.2 Total current liabilities 30.7 159.8 87.9 — 278.4 Long-term liabilities, less current portion: Debt 401.3 12.2 38.5 — 452.0 Deferred income taxes — 20.6 8.7 — 29.3 Other long-term liabilities 15.7 1.1 5.6 — 22.4 Total long-term liabilities 417.0 33.9 52.8 — 503.7 Intercompany advances 185.2 208.0 95.0 (488.2 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 238.0 483.6 241.2 (724.8 ) 238.0 Noncontrolling interests 10.3 — 10.3 (10.3 ) 10.3 Total equity 248.3 483.6 251.5 (735.1 ) 248.3 Total liabilities and equity $ 881.2 $ 885.3 $ 487.2 $ (1,223.3 ) $ 1,030.4 Condensed Consolidating Balance Sheets December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 54.4 $ — $ 54.4 Accounts receivable, net — 125.2 69.2 — 194.4 Inventories, net — 172.9 67.7 — 240.6 Receivable from affiliates — — 12.8 — 12.8 Other current assets 0.7 28.3 24.3 — 53.3 Total current assets 0.7 326.4 228.4 — 555.5 Investments in subsidiaries 492.8 213.8 — (706.6 ) — Intercompany advances 296.5 78.1 110.5 (485.1 ) — Property, plant and equipment, net 6.2 98.2 65.2 — 169.6 Goodwill — 56.8 29.8 — 86.6 Intangible assets, net — 64.8 31.8 — 96.6 Other long-term assets 62.8 4.5 4.0 — 71.3 Total assets $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 100.3 $ 33.4 $ — $ 133.7 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.4 11.2 — 30.8 Accrued expenses and other 10.5 36.8 31.3 — 78.6 Total current liabilities 23.7 143.5 82.9 — 250.1 Long-term liabilities, less current portion: Debt 389.2 12.2 37.6 — 439.0 Deferred income taxes — 20.4 8.6 — 29.0 Other long-term liabilities 16.1 8.5 5.2 — 29.8 Total long-term liabilities 405.3 41.1 51.4 — 497.8 Intercompany advances 198.3 192.2 94.6 (485.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 221.7 465.8 230.8 (696.6 ) 221.7 Noncontrolling interests 10.0 — 10.0 (10.0 ) 10.0 Total equity 231.7 465.8 240.8 (706.6 ) 231.7 Total liabilities and shareholder’s equity $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 Consolidating Statements of Income (Loss) and Comprehensive Income (Loss) Three Months Ended March 31, 2017 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 259.3 $ 84.5 $ — $ 343.8 Cost of sales — 222.8 65.5 — 288.3 Gross profit — 36.5 19.0 — 55.5 Selling, general and administrative expenses 6.3 19.0 11.3 — 36.6 Litigation settlement gain — (3.3 ) — — (3.3 ) Income (loss) from subsidiaries 23.2 4.4 — (27.6 ) — Operating income (loss) 16.9 25.2 7.7 (27.6 ) 22.2 Interest expense 6.8 — 0.6 — 7.4 Income (loss) before income taxes 10.1 25.2 7.1 (27.6 ) 14.8 Income tax expense — 2.5 2.2 — 4.7 Net income (loss) 10.1 22.7 4.9 (27.6 ) 10.1 Net (income) loss attributable to noncontrolling interests (0.3 ) — (0.3 ) 0.3 (0.3 ) Net income (loss) attributable to ParkOhio common shareholder $ 9.8 $ 22.7 $ 4.6 $ (27.3 ) $ 9.8 Other comprehensive income (loss) (see note 11): Net income (loss) $ 10.1 $ 22.7 $ 4.9 $ (27.6 ) $ 10.1 Foreign currency translation adjustment 3.9 — 3.9 (3.9 ) 3.9 Pension and OPEB activity, net of tax adjustments 0.2 0.2 — (0.2 ) 0.2 Comprehensive income (loss), net of tax 14.2 22.9 8.8 (31.7 ) 14.2 Comprehensive (income) loss attributable to noncontrolling interest (0.3 ) — (0.3 ) 0.3 (0.3 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 13.9 $ 22.9 $ 8.5 $ (31.4 ) $ 13.9 Consolidating Statements of Income (Loss) and Comprehensive Income (Loss) Three Months Ended March 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 251.0 $ 77.0 $ — $ 328.0 Cost of sales — 220.3 59.9 — 280.2 Gross profit — 30.7 17.1 — 47.8 Selling, general and administrative expenses 4.1 18.5 9.8 — 32.4 Asset impairment — 4.0 — — 4.0 Income (loss) from subsidiaries 13.6 4.4 — (18.0 ) — Operating income (loss) 9.5 12.6 7.3 (18.0 ) 11.4 Interest expense 6.8 — 0.3 — 7.1 Income (loss) before income taxes 2.7 12.6 7.0 (18.0 ) 4.3 Income tax expense — (0.9 ) 2.5 — 1.6 Net income (loss) 2.7 13.5 4.5 (18.0 ) 2.7 Net (income) loss attributable to noncontrolling interests — — — — — Net income (loss) attributable to ParkOhio common shareholder $ 2.7 $ 13.5 $ 4.5 $ (18.0 ) $ 2.7 Other comprehensive income (loss) (see note 11): Net income (loss) $ 2.7 $ 13.5 $ 4.5 $ (18.0 ) $ 2.7 Foreign currency translation adjustment 2.6 — 2.6 (2.6 ) 2.6 Pension and OPEB activity, net of tax adjustments 0.2 0.1 — (0.1 ) 0.2 Comprehensive income (loss), net of tax 5.5 13.6 7.1 (20.7 ) 5.5 Comprehensive (income) loss attributable to noncontrolling interests — — — — — Comprehensive income (loss) attributable to ParkOhio common shareholder $ 5.5 $ 13.6 $ 7.1 $ (20.7 ) $ 5.5 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2017 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (4.4 ) $ (0.8 ) $ 14.4 $ (11.4 ) $ (2.2 ) INVESTING ACTIVITIES Purchases of property, plant and equipment — (4.5 ) (1.6 ) — (6.1 ) Net cash used in investing activities — (4.5 ) (1.6 ) — (6.1 ) FINANCING ACTIVITIES Intercompany account change (7.5 ) 5.8 (9.7 ) 11.4 — Proceeds from revolving credit facility, net 13.0 — — — 13.0 Payments on term loans and other debt (1.1 ) (0.2 ) (1.7 ) — (3.0 ) (Payments on) proceeds from capital lease facilities, net — (0.3 ) 1.4 — 1.1 Net cash provided (used) by financing activities 4.4 5.3 (10.0 ) 11.4 11.1 Effect of exchange rate changes on cash — — 0.7 — 0.7 Increase in cash and cash equivalents — — 3.5 — 3.5 Cash and cash equivalents at beginning of period — — 54.4 — 54.4 Cash and cash equivalents at end of period $ — $ — $ 57.9 $ — $ 57.9 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (9.8 ) $ 21.5 $ 4.6 $ (6.3 ) $ 10.0 INVESTING ACTIVITIES Purchases of property, plant and equipment — (4.5 ) (4.4 ) — (8.9 ) Net cash used in investing activities — (4.5 ) (4.4 ) — (8.9 ) FINANCING ACTIVITIES Intercompany account change 10.9 (16.6 ) (0.6 ) 6.3 — Proceeds from revolving credit facility, net (4.5 ) — — — (4.5 ) Payments on term loans and other debt (1.1 ) — — — (1.1 ) Proceeds from term loans and other debt 4.5 0.2 — — 4.7 Payments on capital leases, net — (0.6 ) (0.1 ) — (0.7 ) Net cash provided (used) by financing activities 9.8 (17.0 ) (0.7 ) 6.3 (1.6 ) Effect of exchange rate changes on cash — — 0.8 — 0.8 Increase in cash and cash equivalents — — 0.3 — 0.3 Cash and cash equivalents at beginning of period — 0.1 48.3 — 48.4 Cash and cash equivalents at end of period $ — $ 0.1 $ 48.6 $ — $ 48.7 N | NOTE 14 — Supplemental Guarantor Information Each of the material domestic direct and indirect wholly-owned subsidiaries of the Company (the “Guarantor Subsidiaries”) has fully and unconditionally guaranteed, on a joint and several basis, to pay principal, premium, and interest with respect to the Senior Notes. Each of the Guarantor Subsidiaries is “100% owned,” as defined by Rule 3-10(h)(1) Regulation S-X. The guarantee of a Guarantor Subsidiary will automatically terminate, and the obligations of such Guarantor Subsidiary under its guarantee of Senior Notes will be released: (a) in the event of any sale or other disposition of all or substantially all of the assets or all of the capital stock of any Subsidiary Guarantor, by way of merger, consolidation or otherwise; (b) upon designation of any Subsidiary Guarantor as an “unrestricted subsidiary” (as defined in the indenture governing the Senior Notes (the “Indenture”)); (c) upon defeasance or satisfaction and discharge of the Indenture; and (d) upon the release of such Subsidiary Guarantor’s guarantees under all credit facilities of the Company (other than a release as a result of payment under or a discharge of such guarantee). The following supplemental condensed consolidating financial statements present condensed consolidating balance sheets as of December 31, 2016 and December 31, 2015 , condensed consolidating statements of income and other comprehensive income (loss) for the years ended December 31, 2016 , 2015 and 2014 , condensed consolidating statements of cash flows for the years ended December 31, 2016 , 2015 and 2014 , and reclassification and elimination entries necessary to consolidate the Parent and all of its subsidiaries. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. The “Parent” reflected in the accompanying supplemental guarantor information is Park-Ohio Industries, Inc., who is also a guarantor. Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 54.4 $ — $ 54.4 Accounts receivable, net — 125.2 69.2 — 194.4 Inventories, net — 172.9 67.7 — 240.6 Receivable from affiliates — — 12.8 — 12.8 Other current assets 0.7 28.3 24.3 — 53.3 Total current assets 0.7 326.4 228.4 — 555.5 Investment in subsidiaries 492.8 213.8 — (706.6 ) — Intercompany advances 296.5 78.1 110.5 (485.1 ) — Property, plant and equipment, net 6.2 98.2 65.2 — 169.6 Goodwill — 56.8 29.8 — 86.6 Intangible assets, net — 64.8 31.8 — 96.6 Other long-term assets 62.8 4.5 4.0 — 71.3 Total assets $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 100.3 $ 33.4 $ — $ 133.7 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.4 11.2 — 30.8 Accrued expenses and other 10.5 36.8 31.3 — 78.6 Total current liabilities 23.7 143.5 82.9 — 250.1 Long-term liabilities, less current portion: Debt 389.2 12.2 37.6 — 439.0 Deferred tax liabilities — 20.4 8.6 — 29.0 Other long-term liabilities 16.1 8.5 5.2 — 29.8 Total long-term liabilities 405.3 41.1 51.4 — 497.8 Intercompany advances 198.3 192.2 94.6 (485.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 221.7 465.8 230.8 (696.6 ) 221.7 Noncontrolling interest 10.0 — 10.0 (10.0 ) 10.0 Total shareholder’s equity 231.7 465.8 240.8 (706.6 ) 231.7 Total liabilities and shareholder’s equity $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2015 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.1 $ 48.3 $ — $ 48.4 Accounts receivable, net — 139.7 59.6 — 199.3 Inventories, net — 183.1 65.9 — 249.0 Receivable from affiliates — — 8.6 — 8.6 Other current assets 0.8 34.2 4.0 — 39.0 Total current assets 0.8 357.1 186.4 — 544.3 Investment in subsidiaries 495.4 173.5 — (668.9 ) — Intercompany advances 249.2 65.4 151.6 (466.2 ) — Property, plant and equipment, net 6.7 112.2 35.2 — 154.1 Goodwill — 56.5 25.5 — 82.0 Intangible assets, net — 69.4 23.4 — 92.8 Other long-term assets 57.2 4.8 4.4 — 66.4 Total assets $ 809.3 $ 838.9 $ 426.5 $ (1,135.1 ) $ 939.6 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 91.5 $ 38.2 $ — $ 129.7 Payable to affiliates — — 6.6 — 6.6 Current portion of long-term debt 11.7 4.7 1.4 — 17.8 Accrued expenses and other 3.5 53.9 20.1 — 77.5 Total current liabilities 15.2 150.1 66.3 — 231.6 Long-term liabilities, less current portion: Debt 430.6 14.6 0.6 — 445.8 Deferred income taxes — 17.1 4.3 — 21.4 Other long-term liabilities 16.4 13.0 9.1 — 38.5 Total long-term liabilities 447.0 44.7 14.0 — 505.7 Intercompany advances 144.8 172.9 148.5 (466.2 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 195.4 471.2 190.8 (662.0 ) 195.4 Noncontrolling interest 6.9 — 6.9 (6.9 ) 6.9 Total shareholder’s equity 202.3 471.2 197.7 (668.9 ) 202.3 Total liabilities and shareholder’s equity $ 809.3 $ 838.9 $ 426.5 $ (1,135.1 ) $ 939.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 985.6 $ 291.3 $ — $ 1,276.9 Cost of sales — 848.6 225.3 — 1,073.9 Gross profit — 137.0 66.0 — 203.0 Selling, general and administrative expenses 24.2 69.3 35.4 — 128.9 Asset impairment charges — 4.0 — — 4.0 Income (loss) from subsidiaries 84.0 19.2 — (103.2 ) — Operating income (loss) 59.8 82.9 30.6 (103.2 ) 70.1 Interest expense 27.1 — 1.1 — 28.2 Income (loss) before income taxes 32.7 82.9 29.5 (103.2 ) 41.9 Income tax expense — 1.1 8.1 — 9.2 Net income (loss) 32.7 81.8 21.4 (103.2 ) 32.7 Net (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Net income (loss) attributable to ParkOhio common shareholder $ 32.2 $ 81.8 $ 20.9 $ (102.7 ) $ 32.2 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (13.9 ) $ — $ (13.9 ) $ 13.9 $ (13.9 ) Recognition of actuarial loss (gain), net of tax 1.2 1.2 — (1.2 ) 1.2 Comprehensive income (loss), net of tax 20.0 83.0 7.5 (90.5 ) 20.0 Comprehensive (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 19.5 $ 83.0 $ 7.0 $ (90.0 ) $ 19.5 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2015 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 1,135.5 $ 328.3 $ — $ 1,463.8 Cost of sales — 967.6 261.0 — 1,228.6 Gross profit — 167.9 67.3 — 235.2 Selling, general and administrative expenses 28.6 70.6 35.2 — 134.4 Litigation judgment costs 2.2 — — — 2.2 Income (loss) from subsidiaries 106.6 20.6 — (127.2 ) — Operating income (loss) 75.8 117.9 32.1 (127.2 ) 98.6 Interest expense 26.6 — 1.3 — 27.9 Income (loss) before income taxes 49.2 117.9 30.8 (127.2 ) 70.7 Income tax expense — 14.7 6.8 — 21.5 Net income (loss) 49.2 103.2 24.0 (127.2 ) 49.2 Net (income) loss attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Net income (loss) attributable to ParkOhio common shareholder $ 48.6 $ 103.2 $ 23.4 $ (126.6 ) $ 48.6 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (11.8 ) $ — $ (11.8 ) $ 11.8 $ (11.8 ) Recognition of actuarial loss (gain), net of tax (4.2 ) (4.2 ) — 4.2 (4.2 ) Comprehensive income (loss), net of tax 33.2 99.0 12.2 (111.2 ) 33.2 Comprehensive (income) loss attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 32.6 $ 99.0 $ 11.6 $ (110.6 ) $ 32.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2014 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 1,103.0 $ 275.7 $ — $ 1,378.7 Cost of sales — 928.7 215.5 — 1,144.2 Gross profit — 174.3 60.2 — 234.5 Selling, general and administrative expenses 26.2 74.7 34.7 — 135.6 Income (loss) from subsidiaries 99.5 15.5 — (115.0 ) — Operating income (loss) 73.3 115.1 25.5 (115.0 ) 98.9 Interest expense 25.7 — 0.4 — 26.1 Income (loss) before income taxes 47.6 115.1 25.1 (115.0 ) 72.8 Income tax expense (benefit) — 17.4 7.8 — 25.2 Net income (loss) 47.6 97.7 17.3 (115.0 ) 47.6 Net income attributable to noncontrolling interest (1.3 ) — (1.3 ) 1.3 (1.3 ) Net income (loss) attributable to ParkOhio common shareholder $ 46.3 $ 97.7 $ 16.0 $ (113.7 ) $ 46.3 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (7.9 ) $ — $ (7.9 ) $ 7.9 $ (7.9 ) Recognition of actuarial (loss) gain, net of tax (9.5 ) (9.5 ) — 9.5 (9.5 ) Comprehensive income (loss), net of tax 30.2 88.2 9.4 (97.6 ) 30.2 Comprehensive income attributable to noncontrolling interest (1.3 ) — (1.3 ) 1.3 (1.3 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 28.9 $ 88.2 $ 8.1 $ (96.3 ) $ 28.9 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (31.5 ) $ 119.2 $ 14.2 $ (30.4 ) $ 71.5 INVESTING ACTIVITIES Purchases of property, plant and equipment — (20.4 ) (8.1 ) — (28.5 ) Business acquisition, net of cash acquired — — (23.4 ) — (23.4 ) Net cash used by investing activities — (20.4 ) (31.5 ) — (51.9 ) FINANCING ACTIVITIES Intercompany account change 73.9 (98.2 ) (6.1 ) 30.4 — Proceeds from other long-term debt 1.4 0.1 33.4 — 34.9 Payments on term loans and other debt (4.5 ) — — — (4.5 ) Payments on revolving credit facility, net (36.2 ) — — — (36.2 ) Payments on capital lease facilities, net — (0.8 ) (0.4 ) — (1.2 ) Payment of acquisition earn-out — — (2.0 ) — (2.0 ) Dividend paid to parent (2.5 ) — — — (2.5 ) Income tax effect of share-based compensation exercises and vesting (0.6 ) — — — (0.6 ) Net cash provided (used) by financing activities 31.5 (98.9 ) 24.9 30.4 (12.1 ) Effect of exchange rate changes on cash — — (1.5 ) — (1.5 ) (Decrease) increase in cash and cash equivalents — (0.1 ) 6.1 — 6.0 Cash and cash equivalents at beginning of year — 0.1 48.3 — 48.4 Cash and cash equivalents at end of year $ — $ — $ 54.4 $ — $ 54.4 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (36.4 ) $ 82.0 $ 33.2 $ (41.6 ) $ 37.2 INVESTING ACTIVITIES Purchases of property, plant and equipment — (29.6 ) (6.9 ) — (36.5 ) Net cash (used) provided by investing activities — (29.6 ) (6.9 ) — (36.5 ) FINANCING ACTIVITIES Intercompany account change 45.6 (69.0 ) (18.2 ) 41.6 — Proceeds from other long-term debt 2.3 — — — 2.3 (Payments) proceeds on term loans and other debt (3.3 ) 1.1 (1.4 ) — (3.6 ) Proceeds from revolving credit facility, net 7.9 — — — 7.9 Proceeds from capital lease facilities — 11.8 2.0 — 13.8 Dividend paid to parent (17.0 ) — — — (17.0 ) Income tax effect of share-based compensation exercises and vesting 0.9 — — — 0.9 Net cash provided (used) by financing activities 36.4 (56.1 ) (17.6 ) 41.6 4.3 Effect of exchange rate changes on cash — — (4.9 ) — (4.9 ) (Decrease) increase in cash and cash equivalents — (3.7 ) 3.8 — 0.1 Cash and cash equivalents at beginning of year — 3.8 44.5 — 48.3 Cash and cash equivalents at end of year $ — $ 0.1 $ 48.3 $ — $ 48.4 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (21.2 ) $ 89.8 $ 14.4 $ (27.1 ) $ 55.9 INVESTING ACTIVITIES Purchases of property, plant and equipment (0.2 ) (8.3 ) (17.3 ) — (25.8 ) Proceeds from sale of assets — 2.1 — — 2.1 Business acquisitions, net of cash acquired — (47.5 ) (25.2 ) — (72.7 ) Net cash (used) by investing activities (0.2 ) (53.7 ) (42.5 ) — (96.4 ) FINANCING ACTIVITIES Intercompany account change (30.7 ) (32.4 ) 36.0 27.1 — Proceeds from other long-term debt 14.1 — 0.1 — 14.2 Payments on term loans and other debt (3.6 ) (0.6 ) (2.4 ) — (6.6 ) Proceeds from revolving credit facility, net 50.3 — — — 50.3 Dividend paid to parent (10.0 ) — — — (10.0 ) Income tax effect of share-based compensation exercises and vesting 1.3 — — — 1.3 Other — — (1.3 ) — (1.3 ) Net cash provided (used) by financing activities 21.4 (33.0 ) 32.4 27.1 47.9 Effect of exchange rate changes on cash — — (2.8 ) — (2.8 ) Increase in cash and cash equivalents — 3.1 1.5 — 4.6 Cash and cash equivalents at beginning of year — 0.7 43.0 — 43.7 Cash and cash equivalents at end of year $ — $ 3.8 $ 44.5 $ — $ 48.3 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | NOTE 1 — Basis of Presentation The condensed consolidated financial statements include the accounts of Park-Ohio Industries, Inc. and its subsidiaries (collectively, “we”, “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. Park-Ohio Industries, Inc. is a wholly-owned subsidiary of Park-Ohio Holdings Corp. (“Holdings”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q Regulation S-X. Form 10-K The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | NOTE 2 — New Accounting Pronouncements Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 ASU 2016-09 paid-in 2016-09 2016-09 In January 2017, the FASB issued ASU 2017-04, Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, 2014-09, In January 2016, the FASB issued ASU 2016-01, 825-10): In February 2016, the FASB issued ASU 2016-02 right-of-use In March 2017, the FASB issued ASU 2017-07 No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 5 — Inventories The components of inventory consist of the following: March 31, December 31, (In millions) Finished goods $ 134.7 $ 131.4 Work in process 45.6 43.4 Raw materials and supplies 68.3 65.8 Inventories, net $ 248.6 $ 240.6 |
Accrued Warranty Costs
Accrued Warranty Costs | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Accrued Warranty Costs | NOTE 6 — Accrued Warranty Costs The Company estimates warranty claims on products sold that may be incurred based on current and historical data. Actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2017 and 2016: 2017 2016 (In millions) January 1 $ 7.1 $ 6.1 Claims paid (1.0 ) (0.6 ) Warranty expense, net 1.0 0.7 March 31 $ 7.1 $ 6.2 |
Asset Impairment
Asset Impairment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Asset Impairment | NOTE 13 — Asset Impairment In the first quarter of 2016, due to the accelerated end of production in certain programs with an automotive customer, the Company evaluated its long-lived assets in accordance with ASU 360, “Property, Plant and Equipment.” As the carrying value of the assets exceeded the expected undiscounted cash flows, the Company estimated the fair value of these assets to determine whether impairment existed. The fair value of the assets was estimated, using Level 2 inputs, based on the expected sale proceeds of similar machinery and equipment as determined using third party quotes and appraisals. As a result of its analysis, the Company recorded an asset impairment charge of $4.0 million. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Policies) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation: off-balance | |
Accounting Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | Accounting Estimates: |
Cash Equivalents | Cash Equivalents: | |
Inventories | Inventories: first-in, first-out | |
Property, Plant and Equipment | Property, Plant and Equipment: | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: | |
Goodwill and Indefinite-Lived Assets | Goodwill and Indefinite-Lived Assets: Intangibles — Goodwill and Other . | |
Fair Values of Financial Instruments | Fair Values of Financial Instruments: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 6) approximate fair value at December 31, 2016 and December 31, 2015 because of the short-term nature of these instruments. The fair values of long-term debt and pension plan assets are disclosed in Note 6 and Note 11, respectively. The Company has not changed its valuation techniques for measuring fair value during 2016 , and there were no transfers between levels during the periods presented. | |
Income Taxes | The Company’s tax provision for interim periods is determined using an estimate of its annual effective income tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimated annual effective income tax rate, and if the estimated income tax rate changes, a cumulative adjustment is made. | Income Taxes: |
Share-Based Compensation | Share-Based Compensation: Park-Ohio Holdings Corp. (“Holdings”) grants share-based compensation awards to Industries’ employees. In accordance with ASC 718, such costs are allocated to Industries. Under the provisions of Holdings’ 2015 Equity and Incentive Compensation Plan (“2015 Plan”), which is administered by the Compensation Committee of Holdings’ Board of Directors, incentive stock options, non-statutory | |
Revenue Recognition | Revenue Recognition: | |
Cost of Sales | Cost of Sales | |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts: | |
Concentration of Credit Risk | Concentration of Credit Risk: | |
Environmental | Environmental: | |
Foreign Currency Translation | Foreign Currency Translation: year-end | |
Accrued Warranty Costs | The Company estimates warranty claims on products sold that may be incurred based on current and historical data. Actual warranty expense could differ from the estimates made by the Company based on product performance. | Warranties: fluid routing solutions business. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. |
New Accounting Pronouncements | Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09 ASU 2016-09 paid-in 2016-09 2016-09 In January 2017, the FASB issued ASU 2017-04, Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, 2014-09, In January 2016, the FASB issued ASU 2016-01, 825-10): In February 2016, the FASB issued ASU 2016-02 right-of-use In March 2017, the FASB issued ASU 2017-07 No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. | Accounting Pronouncements Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, In May 2015, the FASB issued ASU No. 2015-07, Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, 2014-09, In January 2016, the FASB issued ASU 2016-1, 825-10): In February 2016, the FASB issued ASU 2016-02, right-of-use In March 2016, the FASB issued ASU 2016-09, as classification of related amounts within the statement of cash flows. The ASU is effective for fiscal years beginning with the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In October 2016, the FASB issued ASU 2016-16, No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Commitments and Contingencies | The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. | The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. Although the Company cannot precisely predict the amount of any liability that may ultimately arise with respect to any of these matters, the Company records provisions when it considers the liability probable and reasonably estimable. Our provisions are based on historical experience and legal advice, reviewed quarterly and adjusted according to developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments about potential actions by third parties, such as regulators, courts, and state and federal legislatures. Changes in the amounts of our loss provisions, which can be material, affect our financial condition. Due to the inherent uncertainties in the process undertaken to estimate potential losses, we are unable to estimate an additional range of loss in excess of our accruals. While it is reasonably possible that such excess liabilities, if they were to occur, could be material to operating results in any given quarter or year of their recognition, we do not believe that it is reasonably possible that such excess liabilities would have a material adverse effect on our long-term results of operations, liquidity or consolidated financial position. Our subsidiaries are involved in a number of contractual and warranty related disputes. At this time, we cannot reasonably determine the probability of a loss, and the timing and amount of loss, if any, cannot be reasonably estimated. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. |
Basis of Presentation | The condensed consolidated financial statements include the accounts of Park-Ohio Industries, Inc. and its subsidiaries (collectively, “we”, “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. Park-Ohio Industries, Inc. is a wholly-owned subsidiary of Park-Ohio Holdings Corp. (“Holdings”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q Regulation S-X. Form 10-K | |
Segments | Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | ||
Components of inventory | The components of inventory consist of the following: March 31, December 31, (In millions) Finished goods $ 134.7 $ 131.4 Work in process 45.6 43.4 Raw materials and supplies 68.3 65.8 Inventories, net $ 248.6 $ 240.6 | Inventories: first-in, first-out Major Classes of Inventories December 31, 2016 December 31, 2015 (In millions) Finished goods $ 131.4 $ 147.5 Work in process 43.4 37.4 Raw materials and supplies 65.8 64.1 Inventories, net $ 240.6 $ 249.0 Other inventory items Inventory reserves $ (30.2 ) $ 29.0 Consigned Inventory $ 12.2 $ 10.3 |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Property, plant and equipment | The following table summarizes property, plant and equipment: December 31, 2016 December 31, 2015 (In millions) Property, plant and equipment: Land and land improvements $ 11.3 $ 8.5 Buildings 77.0 65.3 Machinery and equipment 316.1 309.5 Leased property under capital leases 20.4 16.2 Total property, plant and equipment 424.8 399.5 Less accumulated depreciation 255.2 245.4 Property, plant and equipment, net $ 169.6 $ 154.1 |
Schedule of DepreciationSchedule of depreciation expense Expense [Table Text Block] | Information regarding depreciation expense of property, plant and equipment follows: Year Ended December 31, 2016 2015 2014 (In millions) Depreciation expense $ 23.5 $ 21.5 $ 17.6 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Product Warranties Disclosures [Abstract] | ||
Changes in product warranty liability | The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2017 and 2016: 2017 2016 (In millions) January 1 $ 7.1 $ 6.1 Claims paid (1.0 ) (0.6 ) Warranty expense, net 1.0 0.7 March 31 $ 7.1 $ 6.2 | The following table presents the changes in the Company’s product warranty liability: Year Ended December 31, 2016 2015 2014 (In millions) Balance at January 1, $ 6.1 $ 6.9 $ 5.4 Claims paid during the year (3.7 ) (4.7 ) (2.9 ) Warranty expense 2.0 4.0 4.0 Acquired warranty liabilities 2.8 — — Other (0.1 ) (0.1 ) 0.4 Balance at December 31, $ 7.1 $ 6.1 $ 6.9 |
Segments (Tables)
Segments (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||
Results by business segment | Results by business segment were as follows: Three Months Ended March 31, 2017 2016 (In millions) Net sales: Supply Technologies $ 133.2 $ 129.9 Assembly Components 139.3 131.7 Engineered Products 71.3 66.4 $ 343.8 $ 328.0 Segment operating income: Supply Technologies $ 11.3 $ 10.2 Assembly Components 12.5 10.2 Engineered Products 1.7 1.4 Total segment operating income 25.5 21.8 Corporate costs (6.6 ) (6.4 ) Litigation settlement gain 3.3 — Asset impairment charge — (4.0 ) Operating income 22.2 11.4 Interest expense (7.4 ) (7.1 ) Income before income taxes $ 14.8 $ 4.3 | Results by business segment were as follows: Year Ended December 31, 2016 2015 2014 (In millions) Net sales: Supply Technologies $ 502.1 $ 578.7 $ 559.6 Assembly Components 529.4 569.2 490.5 Engineered Products 245.4 315.9 328.6 $ 1,276.9 $ 1,463.8 $ 1,378.7 Segment operating income: Supply Technologies $ 40.0 $ 50.3 $ 42.5 Assembly Components 50.5 57.9 42.0 Engineered Products 10.6 20.9 42.7 Total segment operating income 101.1 129.1 127.2 Corporate costs (27.0 ) (28.3 ) (28.3 ) Asset impairment charge (4.0 ) — — Litigation judgment costs — (2.2 ) — Interest expense (28.2 ) (27.9 ) (26.1 ) Income before income taxes $ 41.9 $ 70.7 $ 72.8 Year Ended December 31, 2016 2015 2014 (In millions) Capital expenditures: Supply Technologies $ 6.1 $ 3.7 $ 5.8 Assembly Components 16.9 27.3 14.0 Engineered Products 5.5 5.5 2.4 Corporate — — 1.5 $ 28.5 $ 36.5 $ 23.7 Depreciation and amortization expense: Supply Technologies $ 4.7 $ 4.7 $ 4.5 Assembly Components 20.1 18.6 14.2 Engineered Products 4.1 4.2 3.3 Corporate 0.7 0.4 0.4 $ 29.6 $ 27.9 $ 22.4 Identifiable assets: Supply Technologies $ 262.0 $ 276.3 $ 277.6 Assembly Components 332.9 344.8 340.5 Engineered Products 304.9 243.1 246.9 Corporate 79.8 75.4 93.8 $ 979.6 $ 939.6 $ 958.8 |
Percentage of net sales by product line | The percentage of net sales by product line included in each segment was as follows: Year Ended December 31, 2016 2015 2014 Supply Technologies: Supply Technologies 85 % 87 % 88 % Engineered specialty products 15 % 13 % 12 % 100 % 100 % 100 % Assembly Components: Fuel, rubber and plastic products 67 % 59 % 57 % Aluminum products 33 % 41 % 43 % 100 % 100 % 100 % Engineered Products: Industrial equipment business 79 % 81 % 78 % Forged and machined products 21 % 19 % 22 % 100 % 100 % 100 % | |
Approximate percentage of net sales by geographic region | The Company’s approximate percentage of net sales by geographic region was as follows: Year Ended December 31, 2016 2015 2014 United States 71 % 72 % 74 % Asia 8 % 8 % 6 % Europe 8 % 7 % 6 % Canada 6 % 6 % 7 % Mexico 6 % 6 % 5 % Other 1 % 1 % 2 % 100 % 100 % 100 % |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of estimated purchase price allocation | Below is the estimated purchase price allocation related to the acquisition of GH: (In millions) Net assets acquired $ 24.7 Goodwill 6.1 Total consideration 30.8 Less: Cash acquired (6.3 ) Contingent consideration (1.1 ) Cash paid for acquisition, net of cash acquired $ 23.4 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill by reportable segment: Supply Technologies Assembly Components Engineered Products Total (In millions) Balance at January 1, 2014 $ 6.4 $ 49.0 $ 5.0 $ 60.4 Acquisitions 0.7 5.0 23.2 28.9 Foreign currency translation 0.5 — (0.3 ) 0.2 Balance at December 31, 2014 7.6 54.0 27.9 89.5 Acquisition adjustments — 0.1 (6.3 ) (6.2 ) Foreign currency translation (0.4 ) — (0.9 ) (1.3 ) Balance at December 31, 2015 7.2 54.1 20.7 82.0 GH acquisition — — 6.1 6.1 Foreign currency translation (1.1 ) — (0.4 ) (1.5 ) Balance at December 31, 2016 $ 6.1 $ 54.1 $ 26.4 $ 86.6 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of other intangible assets | Information regarding other intangible assets follows: December 31, 2016 December 31, 2015 Weighted Average Gross Value Accumulated Amortization Net Value Gross Value Accumulated Amortization Net Value (In millions) Customer relationships 11.1 years $ 75.5 $ 23.7 $ 51.8 $ 76.0 $ 18.5 $ 57.5 Indefinite-lived tradenames * 22.4 * 22.4 18.7 * 18.7 Technology 18.6 years 23.0 1.8 21.2 15.9 0.9 15.0 Other 8.2 years 4.0 2.8 1.2 4.1 2.5 1.6 Total $ 124.9 $ 28.3 $ 96.6 $ 114.7 $ 21.9 $ 92.8 * Not applicable. Tradenames have an indefinite life. |
Schedule of amortization of intangible assets | Amortization expense of other intangible assets follows: Year Ended December 31, 2016 2015 2014 (In millions) Amortization expense $ 6.1 $ 6.4 $ 4.8 |
Amortization for the next five years | We estimate amortization expense for the five years subsequent to December 31, 2016 as follows: (In millions) 2017 $ 6.6 2018 $ 6.4 2019 $ 6.0 2020 $ 5.8 2021 $ 5.8 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Disclosure [Abstract] | ||
Schedule of long-term debt | Long-term debt consists of the following: Carrying Value at Maturity Date Interest March 31, March 31, 2017 December 31, 2016 (In millions) Senior Notes due 2021 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility July 31, 2019 4.10 % 145.8 132.8 Term Loan July 31, 2019 3.00 % 22.3 23.4 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 26.7 26.4 Capital Leases Various Various 19.9 18.8 Other Various Various 22.0 23.6 Gross debt 486.7 475.0 Less current portion of long-term debt (25.3 ) (25.8 ) Less short-term debt (4.4 ) (5.0 ) Less unamortized debt issuance costs (5.0 ) (5.2 ) Total long-term debt, net $ 452.0 $ 439.0 | Long-term debt consists of the following: Carrying Value at Maturity Date Interest Rate at December 31, 2016 December 31, 2016 December 31, 2015 (In millions) Senior Notes April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility July 31, 2019 2.80 % 132.8 169.0 Term loan July 31, 2019 2.88 % 23.4 27.9 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 26.4 — Capital leases Various Various 18.8 17.7 Other Various Various 23.6 3.5 Gross debt 475.0 468.1 Less current portion of long-term debt (25.8 ) (17.8 ) Less short-term debt (5.0 ) — Less unamortized debt issuance costs (1) (5.2 ) (4.5 ) Total long-term debt, net $ 439.0 $ 445.8 (1) Prior to the adoption of ASU 2015-03 |
Fair value of debt | The following table represents fair value information of the Company’s 8.125% Senior Notes due 2021 (the “Senior Notes”), classified as Level 1 using estimated quoted market prices. March 31, 2017 December 31, 2016 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 258.0 $ 257.5 | The following table represents fair value information of the Company’s senior notes due 2021 (the “Senior Notes”), classified as Level 1, at December 31, 2016 and 2015. The fair value was estimated using quoted market prices. December 31, 2016 December 31, 2015 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 257.5 $ 263.4 |
Maturities of long-term debt | Maturities of short-term and long-term debt, excluding capital leases, during each of the five years subsequent to December 31, 2016 are as follows: (In millions) 2017 $ 24.7 2018 $ 20.8 2019 $ 138.4 2020 $ 8.1 2021 $ 263.1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income from continuing operations before income tax expense | Income before income taxes consists of the following: Year Ended December 31, 2016 2015 2014 (In millions) United States $ 16.3 $ 44.9 $ 54.3 Outside the United States 25.6 25.8 18.5 $ 41.9 $ 70.7 $ 72.8 |
Income taxes | Income taxes consists of the following: Year Ended December 31, 2016 2015 2014 (In millions) Current expense: Federal $ 0.3 $ 11.7 $ 17.6 State 0.2 0.7 0.8 Foreign 6.6 6.0 6.2 7.1 18.4 24.6 Deferred expense (benefit): Federal 0.9 2.9 1.1 State 0.5 0.6 (0.8 ) Foreign 0.7 (0.4 ) 0.3 2.1 3.1 0.6 Income tax expense $ 9.2 $ 21.5 $ 25.2 |
Reconciliation between federal statutory tax rate and effective tax rates | A reconciliation of income tax expense computed by applying the statutory federal income tax rate to income before income taxes as recorded is as follows: Year Ended December 31, 2016 2015 2014 (In millions) Tax at U.S. statutory rate $ 14.7 $ 24.7 $ 25.4 Effect of state income taxes, net 0.2 0.6 1.4 Effect of foreign operations (2.1 ) (1.6 ) (0.9 ) Valuation allowance 0.5 (0.7 ) (1.1 ) Uncertain tax positions (4.0 ) 0.1 0.3 Non-deductible 0.6 0.5 1.0 Non-deductible 0.8 1.2 0.8 Manufacturer’s deduction (0.5 ) (1.1 ) (1.4 ) Other, net (1.0 ) (2.2 ) (0.3 ) Total $ 9.2 $ 21.5 $ 25.2 |
Significant components of the Company's net deferred tax assets and liabilities | Significant components of the Company’s net deferred income tax assets and liabilities are as follows: Year Ended December 31, 2016 2015 (In millions) Deferred income tax assets: Postretirement benefit obligation $ 3.6 $ 4.8 Inventory 13.7 12.0 Net operating loss and credit carryforwards 10.8 6.1 Warranty reserve 2.1 1.9 Accrued litigation 2.8 2.9 Compensation 4.1 6.0 Other 9.8 10.1 Total deferred income tax assets 46.9 43.8 Deferred income tax liabilities: Depreciation and amortization 16.0 15.2 Pension 22.1 21.0 Intangible assets 23.3 19.3 Other 5.2 1.6 Total deferred income tax liabilities 66.6 57.1 Net deferred income tax liabilities prior to valuation allowances (19.7 ) (13.3 ) Valuation allowances (5.3 ) (4.8 ) Net deferred income tax liability $ (25.0 ) $ (18.1 ) |
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 (In millions) Unrecognized Tax Benefit — January 1, $ 6.3 $ 6.5 $ 5.9 Gross Increases to Tax Positions Related to Prior Years 0.3 0.3 0.8 Gross Decreases to Tax Positions Related to Prior Years — (0.1 ) (0.2 ) Expiration of Statute of Limitations (3.7 ) (0.4 ) — Unrecognized Tax Benefit — December 31, $ 2.9 $ 6.3 $ 6.5 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Schedule of stock option activity | A summary of Holdings’ stock option activity as of December 31, 2016 and changes during the year then ended is presented below: 2016 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (In whole shares) (In millions) Outstanding — beginning of year 60,000 $ 19.41 Granted — — Exercised (22,000 ) 19.60 Canceled or expired — — Outstanding — end of year 38,000 $ 19.30 1.1 years $ 0.9 Options exercisable 38,000 $ 19.30 1.1 years $ 0.9 | |
Summary of restricted share activity | A summary of Holdings’ restricted share activity for the three months ended March 31, 2017 is as follows: 2017 Time-Based Performance-Based Number Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (In whole shares) (In whole shares) Outstanding - beginning of year 216,916 $ 36.94 165,000 $ 34.78 Granted 15,500 42.60 — — Vested (9,499 ) 35.13 (55,000 ) 34.78 Performance-based to time-based (a) 110,000 34.78 (110,000 ) 34.78 Canceled or expired (2,000 ) 37.87 — — Outstanding - end of period 330,917 $ 36.53 — $ — (a) During the first quarter of 2017, 55,000 of the performance-based restricted shares granted in 2016 fully vested based on the achievement of the performance criteria. In accordance with the grant agreements, the remaining 110,000 shares became time-based, vesting over the remaining two years of the requisite service period. | A summary of Holdings’ restricted share and performance share activity for the year ended December 31, 2016 is as follows: 2016 Time-Based Performance-Based Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value (In whole shares) (In whole shares) Outstanding — beginning of year 208,429 $ 36.61 120,000 $ 48.72 Granted (a) 58,570 30.72 165,000 34.78 Vested (126,083 ) 41.00 (40,000 ) 48.72 Performance- to time-based (b) 80,000 48.72 (80,000 ) 48.72 Canceled or expired (4,000 ) 36.34 — — Outstanding — end of year 216,916 $ 36.94 165,000 $ 34.78 (a) Included in the granted amount are 6,020 restricted share units (b) During the second quarter of 2016, 40,000 of the performance-based restricted shares granted in 2015 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 80,000 shares became time-based, vesting over the remaining two years of the requisite service period. |
Lease Arrangements (Tables)
Lease Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Schedule of assets under capital leases | Future minimum lease commitments during each of the five years following December 31, 2016 and thereafter are as follows: (In millions) Capital Leases Operating leases 2017 $ 6.6 $ 15.8 2018 4.3 11.9 2019 4.3 8.0 2020 3.9 5.4 2021 0.7 3.8 Thereafter — 17.6 Total minimum lease payments 19.8 $ 62.5 Amounts representing interest (1.0 ) Present value of minimum lease payments 18.8 Current maturities (6.1 ) Long-term capital lease obligation $ 12.7 |
Future minimum lease commitments | Assets recorded under capital leases are included in property, plant and equipment and consist of the following: December 31, 2016 December 31, 2015 Machinery and equipment $ 20.4 $ 16.2 Less accumulated depreciation 2.3 0.5 $ 18.1 $ 15.7 |
Pension and Postretirement Be39
Pension and Postretirement Benefits (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | ||
Change in benefit obligation, plan assets, and funded status | The following tables set forth the changes in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2016 and 2015: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 (In millions) Change in benefit obligation Benefit obligation at beginning of year $ 58.4 $ 61.1 $ 13.5 $ 17.0 Service cost 2.4 2.6 — — Interest cost 1.8 2.3 0.3 0.5 Actuarial losses (gains) 0.5 (3.0 ) (2.6 ) (2.7 ) Benefits and expenses paid, net of contributions (4.6 ) (4.6 ) (1.2 ) (1.3 ) Benefit obligation at end of year $ 58.5 $ 58.4 $ 10.0 $ 13.5 Change in plan assets Fair value of plan assets at beginning of year $ 117.3 $ 125.7 $ — $ — Actual return on plan assets 8.3 (2.9 ) — — Company contributions — — 1.2 1.3 Cash transfer to fund postretirement benefit payments (0.8 ) (0.9 ) — — Benefits and expenses paid, net of contributions (4.6 ) (4.6 ) (1.2 ) (1.3 ) Fair value of plan assets at end of year $ 120.2 $ 117.3 $ — $ — Funded (underfunded) status of the plans $ 61.7 $ 58.9 $ (10.0 ) $ (13.5 ) | |
Amounts recognized in the consolidated balance sheets | Amounts recognized in the consolidated balance sheets consist of: Pension Benefits Postretirement Benefits 2016 2015 2016 2015 (In millions) Pension assets $ 61.7 $ 58.9 $ — $ — Other current liabilities — — 1.2 1.4 Other long-term liabilities — — 8.8 12.1 $ 61.7 $ 58.9 $ 10.0 $ 13.5 Amounts recognized in Accumulated other comprehensive loss Net actuarial loss $ 25.8 $ 25.2 $ 1.7 $ 4.4 Net prior service cost (credit) 0.3 0.3 (0.2 ) (0.3 ) Accumulated other comprehensive loss $ 26.1 $ 25.5 $ 1.5 $ 4.1 | |
Allocation of assets, and fair value hierarchy | The pension plan weighted-average asset allocation at December 31, 2016 and 2015 and target allocation for 2017 are as follows: Plan Assets Target 2017 2016 2015 Asset Category Equity securities 45-75 % 61.9 % 62.7 % Debt securities 20-40 % 24.6 % 25.4 % Other 0-20 % 13.5 % 11.9 % 100 % 100 % 100 % The following table sets forth, by level within the fair value hierarchy, the pension plans assets: 2016 2015 Level 1 Total (at Fair Value) Level 1 Total (at Fair Value) (In millions) Common stock $ 40.0 $ 40.0 $ 38.3 $ 38.3 Equity Funds 29.0 29.0 29.1 29.1 Foreign Stock 5.4 5.4 5.7 5.7 U.S. Government obligations 8.1 8.1 7.4 7.4 Fixed income funds 14.1 14.1 14.6 14.6 Corporate Bonds 6.3 6.3 6.8 6.8 Cash and Cash Equivalents 3.3 3.3 1.2 1.2 Total $ 106.2 $ 103.1 Investments measured at net asset value: Common collective trust 1.1 1.5 Hedge funds 12.9 12.7 Total assets at fair value $ 120.2 $ 117.3 | |
Assumptions used in valuation | The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31, and the measurement of the net periodic benefit cost in the following year. Weighted-Average assumptions as of December 31, Pension Benefits Postretirement Benefits 2016 2015 2014 2016 2015 2014 Discount rate 3.91 % 4.13 % 3.82 % 3.63 % 3.80 % 3.60 % Expected return on plan assets 8.25 % 8.25 % 8.25 % N/A N/A N/A Rate of compensation increase 3.00 % 3.00 % 3.00 % N/A N/A N/A Medical health care benefits rate increase N/A N/A N/A 6.50 % 6.75 % 7.00 % Medical drug benefits rate increase N/A N/A N/A 6.50 % 6.75 % 7.00 % Ultimate health care cost trend rate N/A N/A N/A 5.00 % 5.00 % 5.00 % Year of ultimate trend rate N/A N/A N/A 2025 2022 2022 | |
Components of net periodic benefit cost | The components of net periodic benefit (income) costs recognized during interim periods were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2017 2016 2017 2016 (In millions) Service costs $ 0.6 $ 0.6 $ — $ — Interest costs 0.5 0.5 0.1 0.1 Expected return on plan assets (2.4 ) (2.4 ) — — Recognized net actuarial loss 0.3 0.3 — 0.1 Net periodic benefit (income) costs $ (1.0 ) $ (1.0 ) $ 0.1 $ 0.2 Weighted average: Discount rate 3.91 % 4.13 % 3.63 % 3.80 % Expected return on plan assets 8.25 % 8.25 % | Pension Benefits Postretirement Benefits 2016 2015 2014 2016 2015 2014 (In millions) Components of net periodic benefit cost Service costs $ 2.4 $ 2.6 $ 2.2 $ — $ — $ — Interest costs 1.8 2.3 2.2 0.3 0.6 0.6 Expected return on plan assets (9.4 ) (10.2 ) (10.1 ) — — — Amortization of prior service cost (credit) — — 0.1 (0.1 ) (0.1 ) (0.1 ) Recognized net actuarial loss 1.1 0.3 — 0.1 0.5 0.5 Benefit (income) costs $ (4.1 ) $ (5.0 ) $ (5.6 ) $ 0.3 $ 1.0 $ 1.0 Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss AOCI at beginning of year $ 25.5 $ 15.7 $ 2.2 $ 4.1 $ 7.2 $ 5.8 Net loss (gain) arising during the year 1.7 10.1 13.1 (2.6 ) (2.7 ) 1.8 Recognition of prior service credit — — — 0.1 0.1 0.1 Recognition of actuarial loss (1.1 ) (0.3 ) 0.4 (0.1 ) (0.5 ) (0.5 ) Total recognized in accumulated other comprehensive loss at end of year $ 26.1 $ 25.5 $ 15.7 $ 1.5 $ 4.1 $ 7.2 |
Expected future benefit payments | Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years: Postretirement Benefits Pension Benefits Gross Expected Medicare Subsidy Net including Medicare Subsidy (In millions) 2017 $ 4.7 $ 1.3 $ 0.2 $ 1.1 2018 4.4 1.2 0.2 1.0 2019 4.3 1.1 0.1 1.0 2020 4.5 1.0 0.1 0.9 2021 4.6 0.9 0.1 0.8 2022 to 2026 23.4 4.0 0.5 3.5 | |
Effect of one-percentage-point change in assumed health care cost trend rate | A one-percentage-point 1-Percentage Point Increase 1-Percentage Point Decrease (In millions) Effect on total of service and interest cost components in 2016 $ — $ — Effect on postretirement benefit obligation as of December 31, 2016 $ 0.7 $ (0.6 ) |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | ||
Changes in accumulated comprehensive loss | The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2017 and 2016 were as follows: Cumulative Translation Pension and Postretirement Total (In millions) January 1, 2017 $ (30.8 ) $ (11.9 ) $ (42.7 ) Foreign currency translation adjustments (a) 3.9 — 3.9 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2017 $ (26.9 ) $ (11.7 ) $ (38.6 ) January 1, 2016 $ (16.9 ) $ (13.1 ) $ (30.0 ) Foreign currency translation adjustments (a) 2.6 — 2.6 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2016 $ (14.3 ) $ (12.9 ) $ (27.2 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently re-invested. (b) The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. | The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2016 , 2015 , and 2014 were as follows: Cumulative Translation Pension and Postretirement Total (In millions) Balance at January 1, 2014 $ 2.8 $ 0.6 $ 3.4 Foreign currency translation adjustments (a) (7.9 ) — (7.9 ) Pension and OPEB activity, net of tax adjustments (b) — (9.5 ) (9.5 ) Balance at December 31, 2014 (5.1 ) (8.9 ) (14.0 ) Foreign currency translation adjustments (a) (11.8 ) — (11.8 ) Pension and OPEB activity, net of tax adjustments (b) — (4.2 ) (4.2 ) Balance at December 31, 2015 (16.9 ) (13.1 ) (30.0 ) Foreign currency translation adjustments (a) (13.9 ) — (13.9 ) Pension and OPEB activity, net of tax adjustments (b) — 1.2 1.2 Balance at December 31, 2016 $ (30.8 ) $ (11.9 ) $ (42.7 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. (b) The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. |
Supplemental Guarantor Inform41
Supplemental Guarantor Information (Tables) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Supplemental Guarantor Information [Abstract] | ||
Condensed consolidating balance sheet | Park-Ohio Industries, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2017 Condensed Consolidating Balance Sheets March 31, 2017 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 57.9 $ — $ 57.9 Accounts receivable, net — 153.3 72.6 — 225.9 Inventories, net — 173.8 74.8 — 248.6 Receivable from affiliates — — 14.9 — 14.9 Other current assets 1.4 32.3 22.3 — 56.0 Total current assets 1.4 359.4 242.5 — 603.3 Investments in subsidiaries 511.3 223.8 — (735.1 ) — Intercompany advances 298.4 78.5 111.3 (488.2 ) — Property, plant and equipment, net 6.1 98.9 66.3 — 171.3 Goodwill — 56.8 30.3 — 87.1 Intangible assets, net — 63.6 31.5 — 95.1 Other long-term assets 64.0 4.3 5.3 — 73.6 Total assets $ 881.2 $ 885.3 $ 487.2 $ (1,223.3 ) $ 1,030.4 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 117.3 $ 37.2 $ — $ 154.5 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.0 10.5 — 29.7 Accrued expenses and other 17.5 36.5 33.2 — 87.2 Total current liabilities 30.7 159.8 87.9 — 278.4 Long-term liabilities, less current portion: Debt 401.3 12.2 38.5 — 452.0 Deferred income taxes — 20.6 8.7 — 29.3 Other long-term liabilities 15.7 1.1 5.6 — 22.4 Total long-term liabilities 417.0 33.9 52.8 — 503.7 Intercompany advances 185.2 208.0 95.0 (488.2 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 238.0 483.6 241.2 (724.8 ) 238.0 Noncontrolling interests 10.3 — 10.3 (10.3 ) 10.3 Total equity 248.3 483.6 251.5 (735.1 ) 248.3 Total liabilities and equity $ 881.2 $ 885.3 $ 487.2 $ (1,223.3 ) $ 1,030.4 Condensed Consolidating Balance Sheets December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 54.4 $ — $ 54.4 Accounts receivable, net — 125.2 69.2 — 194.4 Inventories, net — 172.9 67.7 — 240.6 Receivable from affiliates — — 12.8 — 12.8 Other current assets 0.7 28.3 24.3 — 53.3 Total current assets 0.7 326.4 228.4 — 555.5 Investments in subsidiaries 492.8 213.8 — (706.6 ) — Intercompany advances 296.5 78.1 110.5 (485.1 ) — Property, plant and equipment, net 6.2 98.2 65.2 — 169.6 Goodwill — 56.8 29.8 — 86.6 Intangible assets, net — 64.8 31.8 — 96.6 Other long-term assets 62.8 4.5 4.0 — 71.3 Total assets $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 100.3 $ 33.4 $ — $ 133.7 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.4 11.2 — 30.8 Accrued expenses and other 10.5 36.8 31.3 — 78.6 Total current liabilities 23.7 143.5 82.9 — 250.1 Long-term liabilities, less current portion: Debt 389.2 12.2 37.6 — 439.0 Deferred income taxes — 20.4 8.6 — 29.0 Other long-term liabilities 16.1 8.5 5.2 — 29.8 Total long-term liabilities 405.3 41.1 51.4 — 497.8 Intercompany advances 198.3 192.2 94.6 (485.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 221.7 465.8 230.8 (696.6 ) 221.7 Noncontrolling interests 10.0 — 10.0 (10.0 ) 10.0 Total equity 231.7 465.8 240.8 (706.6 ) 231.7 Total liabilities and shareholder’s equity $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 | Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ — $ 54.4 $ — $ 54.4 Accounts receivable, net — 125.2 69.2 — 194.4 Inventories, net — 172.9 67.7 — 240.6 Receivable from affiliates — — 12.8 — 12.8 Other current assets 0.7 28.3 24.3 — 53.3 Total current assets 0.7 326.4 228.4 — 555.5 Investment in subsidiaries 492.8 213.8 — (706.6 ) — Intercompany advances 296.5 78.1 110.5 (485.1 ) — Property, plant and equipment, net 6.2 98.2 65.2 — 169.6 Goodwill — 56.8 29.8 — 86.6 Intangible assets, net — 64.8 31.8 — 96.6 Other long-term assets 62.8 4.5 4.0 — 71.3 Total assets $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 100.3 $ 33.4 $ — $ 133.7 Payable to affiliates — — 7.0 — 7.0 Current portion of long-term and short-term debt 13.2 6.4 11.2 — 30.8 Accrued expenses and other 10.5 36.8 31.3 — 78.6 Total current liabilities 23.7 143.5 82.9 — 250.1 Long-term liabilities, less current portion: Debt 389.2 12.2 37.6 — 439.0 Deferred tax liabilities — 20.4 8.6 — 29.0 Other long-term liabilities 16.1 8.5 5.2 — 29.8 Total long-term liabilities 405.3 41.1 51.4 — 497.8 Intercompany advances 198.3 192.2 94.6 (485.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 221.7 465.8 230.8 (696.6 ) 221.7 Noncontrolling interest 10.0 — 10.0 (10.0 ) 10.0 Total shareholder’s equity 231.7 465.8 240.8 (706.6 ) 231.7 Total liabilities and shareholder’s equity $ 859.0 $ 842.6 $ 469.7 $ (1,191.7 ) $ 979.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Balance Sheet December 31, 2015 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.1 $ 48.3 $ — $ 48.4 Accounts receivable, net — 139.7 59.6 — 199.3 Inventories, net — 183.1 65.9 — 249.0 Receivable from affiliates — — 8.6 — 8.6 Other current assets 0.8 34.2 4.0 — 39.0 Total current assets 0.8 357.1 186.4 — 544.3 Investment in subsidiaries 495.4 173.5 — (668.9 ) — Intercompany advances 249.2 65.4 151.6 (466.2 ) — Property, plant and equipment, net 6.7 112.2 35.2 — 154.1 Goodwill — 56.5 25.5 — 82.0 Intangible assets, net — 69.4 23.4 — 92.8 Other long-term assets 57.2 4.8 4.4 — 66.4 Total assets $ 809.3 $ 838.9 $ 426.5 $ (1,135.1 ) $ 939.6 LIABILITIES AND SHAREHOLDER’S EQUITY Current liabilities: Trade accounts payable $ — $ 91.5 $ 38.2 $ — $ 129.7 Payable to affiliates — — 6.6 — 6.6 Current portion of long-term debt 11.7 4.7 1.4 — 17.8 Accrued expenses and other 3.5 53.9 20.1 — 77.5 Total current liabilities 15.2 150.1 66.3 — 231.6 Long-term liabilities, less current portion: Debt 430.6 14.6 0.6 — 445.8 Deferred income taxes — 17.1 4.3 — 21.4 Other long-term liabilities 16.4 13.0 9.1 — 38.5 Total long-term liabilities 447.0 44.7 14.0 — 505.7 Intercompany advances 144.8 172.9 148.5 (466.2 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder’s equity 195.4 471.2 190.8 (662.0 ) 195.4 Noncontrolling interest 6.9 — 6.9 (6.9 ) 6.9 Total shareholder’s equity 202.3 471.2 197.7 (668.9 ) 202.3 Total liabilities and shareholder’s equity $ 809.3 $ 838.9 $ 426.5 $ (1,135.1 ) $ 939.6 |
Condensed consolidating statement of income and other comprehensive income (loss) | Consolidating Statements of Income (Loss) and Comprehensive Income (Loss) Three Months Ended March 31, 2017 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 259.3 $ 84.5 $ — $ 343.8 Cost of sales — 222.8 65.5 — 288.3 Gross profit — 36.5 19.0 — 55.5 Selling, general and administrative expenses 6.3 19.0 11.3 — 36.6 Litigation settlement gain — (3.3 ) — — (3.3 ) Income (loss) from subsidiaries 23.2 4.4 — (27.6 ) — Operating income (loss) 16.9 25.2 7.7 (27.6 ) 22.2 Interest expense 6.8 — 0.6 — 7.4 Income (loss) before income taxes 10.1 25.2 7.1 (27.6 ) 14.8 Income tax expense — 2.5 2.2 — 4.7 Net income (loss) 10.1 22.7 4.9 (27.6 ) 10.1 Net (income) loss attributable to noncontrolling interests (0.3 ) — (0.3 ) 0.3 (0.3 ) Net income (loss) attributable to ParkOhio common shareholder $ 9.8 $ 22.7 $ 4.6 $ (27.3 ) $ 9.8 Other comprehensive income (loss) (see note 11): Net income (loss) $ 10.1 $ 22.7 $ 4.9 $ (27.6 ) $ 10.1 Foreign currency translation adjustment 3.9 — 3.9 (3.9 ) 3.9 Pension and OPEB activity, net of tax adjustments 0.2 0.2 — (0.2 ) 0.2 Comprehensive income (loss), net of tax 14.2 22.9 8.8 (31.7 ) 14.2 Comprehensive (income) loss attributable to noncontrolling interest (0.3 ) — (0.3 ) 0.3 (0.3 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 13.9 $ 22.9 $ 8.5 $ (31.4 ) $ 13.9 Consolidating Statements of Income (Loss) and Comprehensive Income (Loss) Three Months Ended March 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 251.0 $ 77.0 $ — $ 328.0 Cost of sales — 220.3 59.9 — 280.2 Gross profit — 30.7 17.1 — 47.8 Selling, general and administrative expenses 4.1 18.5 9.8 — 32.4 Asset impairment — 4.0 — — 4.0 Income (loss) from subsidiaries 13.6 4.4 — (18.0 ) — Operating income (loss) 9.5 12.6 7.3 (18.0 ) 11.4 Interest expense 6.8 — 0.3 — 7.1 Income (loss) before income taxes 2.7 12.6 7.0 (18.0 ) 4.3 Income tax expense — (0.9 ) 2.5 — 1.6 Net income (loss) 2.7 13.5 4.5 (18.0 ) 2.7 Net (income) loss attributable to noncontrolling interests — — — — — Net income (loss) attributable to ParkOhio common shareholder $ 2.7 $ 13.5 $ 4.5 $ (18.0 ) $ 2.7 Other comprehensive income (loss) (see note 11): Net income (loss) $ 2.7 $ 13.5 $ 4.5 $ (18.0 ) $ 2.7 Foreign currency translation adjustment 2.6 — 2.6 (2.6 ) 2.6 Pension and OPEB activity, net of tax adjustments 0.2 0.1 — (0.1 ) 0.2 Comprehensive income (loss), net of tax 5.5 13.6 7.1 (20.7 ) 5.5 Comprehensive (income) loss attributable to noncontrolling interests — — — — — Comprehensive income (loss) attributable to ParkOhio common shareholder $ 5.5 $ 13.6 $ 7.1 $ (20.7 ) $ 5.5 | Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 985.6 $ 291.3 $ — $ 1,276.9 Cost of sales — 848.6 225.3 — 1,073.9 Gross profit — 137.0 66.0 — 203.0 Selling, general and administrative expenses 24.2 69.3 35.4 — 128.9 Asset impairment charges — 4.0 — — 4.0 Income (loss) from subsidiaries 84.0 19.2 — (103.2 ) — Operating income (loss) 59.8 82.9 30.6 (103.2 ) 70.1 Interest expense 27.1 — 1.1 — 28.2 Income (loss) before income taxes 32.7 82.9 29.5 (103.2 ) 41.9 Income tax expense — 1.1 8.1 — 9.2 Net income (loss) 32.7 81.8 21.4 (103.2 ) 32.7 Net (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Net income (loss) attributable to ParkOhio common shareholder $ 32.2 $ 81.8 $ 20.9 $ (102.7 ) $ 32.2 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (13.9 ) $ — $ (13.9 ) $ 13.9 $ (13.9 ) Recognition of actuarial loss (gain), net of tax 1.2 1.2 — (1.2 ) 1.2 Comprehensive income (loss), net of tax 20.0 83.0 7.5 (90.5 ) 20.0 Comprehensive (income) loss attributable to noncontrolling interest (0.5 ) — (0.5 ) 0.5 (0.5 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 19.5 $ 83.0 $ 7.0 $ (90.0 ) $ 19.5 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2015 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 1,135.5 $ 328.3 $ — $ 1,463.8 Cost of sales — 967.6 261.0 — 1,228.6 Gross profit — 167.9 67.3 — 235.2 Selling, general and administrative expenses 28.6 70.6 35.2 — 134.4 Litigation judgment costs 2.2 — — — 2.2 Income (loss) from subsidiaries 106.6 20.6 — (127.2 ) — Operating income (loss) 75.8 117.9 32.1 (127.2 ) 98.6 Interest expense 26.6 — 1.3 — 27.9 Income (loss) before income taxes 49.2 117.9 30.8 (127.2 ) 70.7 Income tax expense — 14.7 6.8 — 21.5 Net income (loss) 49.2 103.2 24.0 (127.2 ) 49.2 Net (income) loss attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Net income (loss) attributable to ParkOhio common shareholder $ 48.6 $ 103.2 $ 23.4 $ (126.6 ) $ 48.6 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (11.8 ) $ — $ (11.8 ) $ 11.8 $ (11.8 ) Recognition of actuarial loss (gain), net of tax (4.2 ) (4.2 ) — 4.2 (4.2 ) Comprehensive income (loss), net of tax 33.2 99.0 12.2 (111.2 ) 33.2 Comprehensive (income) loss attributable to noncontrolling interest (0.6 ) — (0.6 ) 0.6 (0.6 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 32.6 $ 99.0 $ 11.6 $ (110.6 ) $ 32.6 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Income and Other Comprehensive Income (Loss) Year Ended December 31, 2014 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 1,103.0 $ 275.7 $ — $ 1,378.7 Cost of sales — 928.7 215.5 — 1,144.2 Gross profit — 174.3 60.2 — 234.5 Selling, general and administrative expenses 26.2 74.7 34.7 — 135.6 Income (loss) from subsidiaries 99.5 15.5 — (115.0 ) — Operating income (loss) 73.3 115.1 25.5 (115.0 ) 98.9 Interest expense 25.7 — 0.4 — 26.1 Income (loss) before income taxes 47.6 115.1 25.1 (115.0 ) 72.8 Income tax expense (benefit) — 17.4 7.8 — 25.2 Net income (loss) 47.6 97.7 17.3 (115.0 ) 47.6 Net income attributable to noncontrolling interest (1.3 ) — (1.3 ) 1.3 (1.3 ) Net income (loss) attributable to ParkOhio common shareholder $ 46.3 $ 97.7 $ 16.0 $ (113.7 ) $ 46.3 Other comprehensive income (loss) (see note 12): Foreign currency translation adjustments $ (7.9 ) $ — $ (7.9 ) $ 7.9 $ (7.9 ) Recognition of actuarial (loss) gain, net of tax (9.5 ) (9.5 ) — 9.5 (9.5 ) Comprehensive income (loss), net of tax 30.2 88.2 9.4 (97.6 ) 30.2 Comprehensive income attributable to noncontrolling interest (1.3 ) — (1.3 ) 1.3 (1.3 ) Comprehensive income (loss) attributable to ParkOhio common shareholder $ 28.9 $ 88.2 $ 8.1 $ (96.3 ) $ 28.9 |
Condensed consolidating statement of cash flows | Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2017 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (4.4 ) $ (0.8 ) $ 14.4 $ (11.4 ) $ (2.2 ) INVESTING ACTIVITIES Purchases of property, plant and equipment — (4.5 ) (1.6 ) — (6.1 ) Net cash used in investing activities — (4.5 ) (1.6 ) — (6.1 ) FINANCING ACTIVITIES Intercompany account change (7.5 ) 5.8 (9.7 ) 11.4 — Proceeds from revolving credit facility, net 13.0 — — — 13.0 Payments on term loans and other debt (1.1 ) (0.2 ) (1.7 ) — (3.0 ) (Payments on) proceeds from capital lease facilities, net — (0.3 ) 1.4 — 1.1 Net cash provided (used) by financing activities 4.4 5.3 (10.0 ) 11.4 11.1 Effect of exchange rate changes on cash — — 0.7 — 0.7 Increase in cash and cash equivalents — — 3.5 — 3.5 Cash and cash equivalents at beginning of period — — 54.4 — 54.4 Cash and cash equivalents at end of period $ — $ — $ 57.9 $ — $ 57.9 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (9.8 ) $ 21.5 $ 4.6 $ (6.3 ) $ 10.0 INVESTING ACTIVITIES Purchases of property, plant and equipment — (4.5 ) (4.4 ) — (8.9 ) Net cash used in investing activities — (4.5 ) (4.4 ) — (8.9 ) FINANCING ACTIVITIES Intercompany account change 10.9 (16.6 ) (0.6 ) 6.3 — Proceeds from revolving credit facility, net (4.5 ) — — — (4.5 ) Payments on term loans and other debt (1.1 ) — — — (1.1 ) Proceeds from term loans and other debt 4.5 0.2 — — 4.7 Payments on capital leases, net — (0.6 ) (0.1 ) — (0.7 ) Net cash provided (used) by financing activities 9.8 (17.0 ) (0.7 ) 6.3 (1.6 ) Effect of exchange rate changes on cash — — 0.8 — 0.8 Increase in cash and cash equivalents — — 0.3 — 0.3 Cash and cash equivalents at beginning of period — 0.1 48.3 — 48.4 Cash and cash equivalents at end of period $ — $ 0.1 $ 48.6 $ — $ 48.7 | Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2016 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (31.5 ) $ 119.2 $ 14.2 $ (30.4 ) $ 71.5 INVESTING ACTIVITIES Purchases of property, plant and equipment — (20.4 ) (8.1 ) — (28.5 ) Business acquisition, net of cash acquired — — (23.4 ) — (23.4 ) Net cash used by investing activities — (20.4 ) (31.5 ) — (51.9 ) FINANCING ACTIVITIES Intercompany account change 73.9 (98.2 ) (6.1 ) 30.4 — Proceeds from other long-term debt 1.4 0.1 33.4 — 34.9 Payments on term loans and other debt (4.5 ) — — — (4.5 ) Payments on revolving credit facility, net (36.2 ) — — — (36.2 ) Payments on capital lease facilities, net — (0.8 ) (0.4 ) — (1.2 ) Payment of acquisition earn-out — — (2.0 ) — (2.0 ) Dividend paid to parent (2.5 ) — — — (2.5 ) Income tax effect of share-based compensation exercises and vesting (0.6 ) — — — (0.6 ) Net cash provided (used) by financing activities 31.5 (98.9 ) 24.9 30.4 (12.1 ) Effect of exchange rate changes on cash — — (1.5 ) — (1.5 ) (Decrease) increase in cash and cash equivalents — (0.1 ) 6.1 — 6.0 Cash and cash equivalents at beginning of year — 0.1 48.3 — 48.4 Cash and cash equivalents at end of year $ — $ — $ 54.4 $ — $ 54.4 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2015 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (36.4 ) $ 82.0 $ 33.2 $ (41.6 ) $ 37.2 INVESTING ACTIVITIES Purchases of property, plant and equipment — (29.6 ) (6.9 ) — (36.5 ) Net cash (used) provided by investing activities — (29.6 ) (6.9 ) — (36.5 ) FINANCING ACTIVITIES Intercompany account change 45.6 (69.0 ) (18.2 ) 41.6 — Proceeds from other long-term debt 2.3 — — — 2.3 (Payments) proceeds on term loans and other debt (3.3 ) 1.1 (1.4 ) — (3.6 ) Proceeds from revolving credit facility, net 7.9 — — — 7.9 Proceeds from capital lease facilities — 11.8 2.0 — 13.8 Dividend paid to parent (17.0 ) — — — (17.0 ) Income tax effect of share-based compensation exercises and vesting 0.9 — — — 0.9 Net cash provided (used) by financing activities 36.4 (56.1 ) (17.6 ) 41.6 4.3 Effect of exchange rate changes on cash — — (4.9 ) — (4.9 ) (Decrease) increase in cash and cash equivalents — (3.7 ) 3.8 — 0.1 Cash and cash equivalents at beginning of year — 3.8 44.5 — 48.3 Cash and cash equivalents at end of year $ — $ 0.1 $ 48.3 $ — $ 48.4 Park-Ohio Industries, Inc. and Subsidiaries Condensed Consolidating Statement of Cash Flows Year Ended December 31, 2014 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (21.2 ) $ 89.8 $ 14.4 $ (27.1 ) $ 55.9 INVESTING ACTIVITIES Purchases of property, plant and equipment (0.2 ) (8.3 ) (17.3 ) — (25.8 ) Proceeds from sale of assets — 2.1 — — 2.1 Business acquisitions, net of cash acquired — (47.5 ) (25.2 ) — (72.7 ) Net cash (used) by investing activities (0.2 ) (53.7 ) (42.5 ) — (96.4 ) FINANCING ACTIVITIES Intercompany account change (30.7 ) (32.4 ) 36.0 27.1 — Proceeds from other long-term debt 14.1 — 0.1 — 14.2 Payments on term loans and other debt (3.6 ) (0.6 ) (2.4 ) — (6.6 ) Proceeds from revolving credit facility, net 50.3 — — — 50.3 Dividend paid to parent (10.0 ) — — — (10.0 ) Income tax effect of share-based compensation exercises and vesting 1.3 — — — 1.3 Other — — (1.3 ) — (1.3 ) Net cash provided (used) by financing activities 21.4 (33.0 ) 32.4 27.1 47.9 Effect of exchange rate changes on cash — — (2.8 ) — (2.8 ) Increase in cash and cash equivalents — 3.1 1.5 — 4.6 Cash and cash equivalents at beginning of year — 0.7 43.0 — 43.7 Cash and cash equivalents at end of year $ — $ 3.8 $ 44.5 $ — $ 48.3 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)SegmentCustomershares | Dec. 31, 2015USD ($) | |
Line of Credit Facility [Line Items] | ||
Number of reportable segments | Segment | 3 | |
Billings in excess of cost | $ 22.7 | $ 16.8 |
Sale of accounts receivable | 81.6 | 118.5 |
Discount on sale of accounts receivable | 0.5 | $ (0.6) |
Aggregate amount trade accounts receivable | $ 37.8 | |
Percentage of trade accounts receivable | 19.00% | |
Amount of net sales | $ 276.9 | |
Percentage of net sales | 22.00% | |
Number of customers in the automotive industry | Customer | 6 | |
2015 Long-Term Incentive Plan | ||
Line of Credit Facility [Line Items] | ||
Common stock that may be awarded (in shares) | shares | 367,977 | |
Stock options | 2015 Long-Term Incentive Plan | ||
Line of Credit Facility [Line Items] | ||
Expiration term | 10 years | |
Machinery and Equipment | ||
Line of Credit Facility [Line Items] | ||
Property, plant and equipment, useful life, majority range, minimum | 3 years | |
Property, plant and equipment, useful life, majority range, maximum | 10 years | |
Minimum | Buildings | ||
Line of Credit Facility [Line Items] | ||
Estimated useful lives | 5 years | |
Minimum | Machinery and Equipment | ||
Line of Credit Facility [Line Items] | ||
Estimated useful lives | 1 year | |
Maximum | Buildings | ||
Line of Credit Facility [Line Items] | ||
Estimated useful lives | 40 years | |
Maximum | Machinery and Equipment | ||
Line of Credit Facility [Line Items] | ||
Estimated useful lives | 20 years |
Inventories (Components of Inve
Inventories (Components of Inventory) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Components of inventory | |||
Finished goods | $ 134.7 | $ 131.4 | $ 147.5 |
Work in process | 45.6 | 43.4 | 37.4 |
Raw materials and supplies | 68.3 | 65.8 | 64.1 |
Inventories, net | $ 248.6 | 240.6 | 249 |
Inventory reserves | (30.2) | 29 | |
Consigned Inventory | $ 12.2 | $ 10.3 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Schedule of Property, Plant and Equipment) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 424.8 | $ 399.5 | |
Less accumulated depreciation | 255.2 | 245.4 | |
Property, plant and equipment, net | $ 171.3 | 169.6 | 154.1 |
Land and land improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 11.3 | 8.5 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 77 | 65.3 | |
Machinery and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | 316.1 | 309.5 | |
Leased property under capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant and equipment | $ 20.4 | $ 16.2 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Schedule of Depreciation) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Depreciation expense | $ 23.5 | $ 21.5 | $ 17.6 |
Accrued Warranty Costs (Detail)
Accrued Warranty Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Changes in product warranty liability | |||||
Balance at beginning of period | $ 7.1 | $ 6.1 | $ 6.1 | $ 6.9 | $ 5.4 |
Claims paid | (1) | (0.6) | (3.7) | (4.7) | (2.9) |
Warranty expense, net | 1 | 0.7 | 2 | 4 | 4 |
Acquired warranty liabilities | 2.8 | 0 | 0 | ||
Other | (0.1) | (0.1) | 0.4 | ||
Balance at end of period | $ 7.1 | $ 6.2 | $ 7.1 | $ 6.1 | $ 6.9 |
Segments (Detail)
Segments (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 3 | ||
Percentage of assets | 68.00% | 71.00% | 72.00% |
Segments (Schedule of Segment I
Segments (Schedule of Segment Information) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net sales: | |||||
Net sales | $ 343.8 | $ 328 | $ 1,276.9 | $ 1,463.8 | $ 1,378.7 |
Segment operating income: | |||||
Litigation settlement gain | 3.3 | 0 | |||
Asset impairment charge | 0 | (4) | (4) | 0 | 0 |
Operating income | 22.2 | 11.4 | 70.1 | 98.6 | 98.9 |
Interest expense | (7.4) | (7.1) | (28.2) | (27.9) | (26.1) |
Litigation judgment costs | 0 | (2.2) | 0 | ||
Income before income taxes | 14.8 | 4.3 | 41.9 | 70.7 | 72.8 |
Identifiable assets: | |||||
Capital expenditures: | 28.5 | 36.5 | 23.7 | ||
Depreciation and amortization | 29.6 | 27.9 | 22.4 | ||
Identifiable assets: | 1,030.4 | 979.6 | 939.6 | 958.8 | |
Operating Segments | |||||
Net sales: | |||||
Net sales | 343.8 | 328 | |||
Segment operating income: | |||||
Corporate costs | (27) | (28.3) | (28.3) | ||
Operating income | 25.5 | 21.8 | 101.1 | 129.1 | 127.2 |
Segment Reconciling Items | |||||
Segment operating income: | |||||
Corporate costs | (6.6) | (6.4) | |||
Litigation settlement gain | 3.3 | 0 | |||
Asset impairment charge | 0 | (4) | |||
Operating income | 22.2 | 11.4 | |||
Interest expense | (7.4) | (7.1) | |||
Corporate | |||||
Identifiable assets: | |||||
Capital expenditures: | 0 | 0 | 1.5 | ||
Depreciation and amortization | 0.7 | 0.4 | 0.4 | ||
Identifiable assets: | 79.8 | 75.4 | 93.8 | ||
Supply Technologies | |||||
Net sales: | |||||
Net sales | 502.1 | 578.7 | 559.6 | ||
Identifiable assets: | |||||
Capital expenditures: | 6.1 | 3.7 | 5.8 | ||
Depreciation and amortization | 4.7 | 4.7 | 4.5 | ||
Identifiable assets: | 262 | 276.3 | 277.6 | ||
Supply Technologies | Operating Segments | |||||
Net sales: | |||||
Net sales | 133.2 | 129.9 | |||
Segment operating income: | |||||
Operating income | 11.3 | 10.2 | 40 | 50.3 | 42.5 |
Assembly Components | |||||
Net sales: | |||||
Net sales | 529.4 | 569.2 | 490.5 | ||
Identifiable assets: | |||||
Capital expenditures: | 16.9 | 27.3 | 14 | ||
Depreciation and amortization | 20.1 | 18.6 | 14.2 | ||
Identifiable assets: | 332.9 | 344.8 | 340.5 | ||
Assembly Components | Operating Segments | |||||
Net sales: | |||||
Net sales | 139.3 | 131.7 | |||
Segment operating income: | |||||
Operating income | 12.5 | 10.2 | 50.5 | 57.9 | 42 |
Engineered Products | |||||
Net sales: | |||||
Net sales | 245.4 | 315.9 | 328.6 | ||
Identifiable assets: | |||||
Capital expenditures: | 5.5 | 5.5 | 2.4 | ||
Depreciation and amortization | 4.1 | 4.2 | 3.3 | ||
Identifiable assets: | 304.9 | 243.1 | 246.9 | ||
Engineered Products | Operating Segments | |||||
Net sales: | |||||
Net sales | 71.3 | 66.4 | |||
Segment operating income: | |||||
Operating income | $ 1.7 | $ 1.4 | $ 10.6 | $ 20.9 | $ 42.7 |
Segments (Percentage of Net Sal
Segments (Percentage of Net Sales by Product Line) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Supply Technologies | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Assembly Components | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Supply Technologies Product | Supply Technologies | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 85.00% | 87.00% | 88.00% |
Engineered Specialty Products | Supply Technologies | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 15.00% | 13.00% | 12.00% |
Fuel, rubber and plastic products | Assembly Components | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 67.00% | 59.00% | 57.00% |
Aluminum Primary Products | Assembly Components | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 33.00% | 41.00% | 43.00% |
Industrial Equipment Business | Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 79.00% | 81.00% | 78.00% |
Forged and Machined Products | Engineered Products | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 21.00% | 19.00% | 22.00% |
Segments (Company's approximate
Segments (Company's approximate percentage of net sales by geographic region) (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
United States | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 71.00% | 72.00% | 74.00% |
Asia | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 8.00% | 8.00% | 6.00% |
Europe | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 8.00% | 7.00% | 6.00% |
Canada | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 6.00% | 6.00% | 7.00% |
Mexico | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 6.00% | 6.00% | 5.00% |
Other | |||
Segment Reporting Information [Line Items] | |||
Percentage of net sales | 1.00% | 1.00% | 2.00% |
Acquisitions (Detail)
Acquisitions (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Dec. 31, 2014 | Oct. 31, 2014 | Jun. 30, 2014 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | |||||||||
Cash paid for acquisition, net of cash acquired | $ 23.4 | $ 0 | $ 72.7 | ||||||
Payment of acquisition earn-out | 2 | $ 0 | $ 0 | ||||||
GH Electrotermia S.A. | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid for acquisition, net of cash acquired | $ 23.4 | ||||||||
Cash acquired | 6.3 | ||||||||
Deb assumed in acquisition | 13.9 | 13.9 | |||||||
Contingent consideration, fair value of earn-out | 2.1 | 2.1 | |||||||
Estimated fair value of the earn-out | $ 1.1 | 1.1 | $ 1.1 | ||||||
Revenues | $ 55 | ||||||||
Saet S.p.A | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid for acquisition, net of cash acquired | $ 22.1 | ||||||||
Autoform Tool and Manufacturing | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid for acquisition, net of cash acquired | $ 48.9 | ||||||||
Apollo Aerospace Group | |||||||||
Business Acquisition [Line Items] | |||||||||
Cash paid for acquisition, net of cash acquired | $ 6.5 | ||||||||
Contingent consideration | $ 2.4 | ||||||||
Contingent consideration, period for targets | 2 years | ||||||||
Payment of acquisition earn-out | $ 2 |
Acquisitions (Estimated Purchas
Acquisitions (Estimated Purchase Price Allocation) (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2017 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 86.6 | $ 86.6 | $ 82 | $ 89.5 | $ 87.1 | $ 60.4 |
Less: | ||||||
Cash paid for acquisition, net of cash acquired | 23.4 | $ 0 | $ 72.7 | |||
GH Electrotermia S.A. | ||||||
Business Acquisition [Line Items] | ||||||
Net assets acquired | 24.7 | 24.7 | ||||
Goodwill | 6.1 | 6.1 | ||||
Total consideration | 30.8 | 30.8 | ||||
Less: | ||||||
Cash acquired | (6.3) | |||||
Contingent consideration | (1.1) | $ (1.1) | $ (1.1) | |||
Cash paid for acquisition, net of cash acquired | $ 23.4 |
Goodwill (Change in Goodwill) (
Goodwill (Change in Goodwill) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 82 | $ 89.5 | $ 60.4 |
Acquisition adjustments | (6.2) | ||
Acquisitions | 6.1 | 28.9 | |
Foreign currency translation | (1.5) | (1.3) | 0.2 |
Balance, end of period | 86.6 | 82 | 89.5 |
Supply Technologies | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 7.2 | 7.6 | 6.4 |
Acquisition adjustments | 0 | ||
Acquisitions | 0 | 0.7 | |
Foreign currency translation | (1.1) | (0.4) | 0.5 |
Balance, end of period | 6.1 | 7.2 | 7.6 |
Assembly Components | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 54.1 | 54 | 49 |
Acquisition adjustments | 0.1 | ||
Acquisitions | 0 | 5 | |
Foreign currency translation | 0 | 0 | 0 |
Balance, end of period | 54.1 | 54.1 | 54 |
Engineered Products | |||
Goodwill [Roll Forward] | |||
Balance, beginning of period | 20.7 | 27.9 | 5 |
Acquisition adjustments | (6.3) | ||
Acquisitions | 6.1 | 23.2 | |
Foreign currency translation | (0.4) | (0.9) | (0.3) |
Balance, end of period | $ 26.4 | $ 20.7 | $ 27.9 |
Other Intangible Assets (Detail
Other Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2017 | |
Details of other intangible assets | ||||
Intangible assets, gross (excluding goodwill) | $ 124.9 | $ 114.7 | ||
Accumulated Amortization | 28.3 | 21.9 | ||
Total, Net | 96.6 | 92.8 | $ 95.1 | |
Amortization [Abstract] | ||||
Amortization expense | 6.1 | 6.4 | $ 4.8 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||
2,017 | 6.6 | |||
2,018 | 6.4 | |||
2,019 | 6 | |||
2,020 | 5.8 | |||
2,021 | 5.8 | |||
Tradenames | ||||
Details of other intangible assets | ||||
Indefinite-lived tradenames | $ 22.4 | 18.7 | ||
Non-contractual customer relationships | ||||
Details of other intangible assets | ||||
Weighted Average Useful Life | 11 years 1 month 6 days | |||
Gross Value | $ 75.5 | 76 | ||
Accumulated Amortization | 23.7 | 18.5 | ||
Net Value | $ 51.8 | 57.5 | ||
Technology | ||||
Details of other intangible assets | ||||
Weighted Average Useful Life | 18 years 7 months 6 days | |||
Gross Value | $ 23 | 15.9 | ||
Accumulated Amortization | 1.8 | 0.9 | ||
Net Value | $ 21.2 | 15 | ||
Other | ||||
Details of other intangible assets | ||||
Weighted Average Useful Life | 8 years 2 months 12 days | |||
Gross Value | $ 4 | 4.1 | ||
Accumulated Amortization | 2.8 | 2.5 | ||
Net Value | 1.2 | $ 1.6 | ||
GH Electrotermia S.A. | ||||
Details of other intangible assets | ||||
Finite-lived intangible assets | 7.5 | |||
Indefinite-lived intangible assets | $ 4.4 |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of Long-term Debt) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Total debt | $ 486.7 | $ 475 | $ 468.1 |
Less current maturities | (25.3) | (25.8) | (17.8) |
Less short-term debt | (4.4) | (5) | |
Less unamortized debt issuance costs | (5) | (5.2) | (4.5) |
Total long-term debt, net of current portion | $ 452 | $ 439 | 445.8 |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Interest rate at end of period | 4.10% | 2.80% | |
Total debt | $ 145.8 | $ 132.8 | 169 |
Term Loan | |||
Debt Instrument [Line Items] | |||
Interest rate at end of period | 3.00% | 2.88% | |
Total debt | $ 22.3 | $ 23.4 | 27.9 |
Industrial Equipment Group European Facilities | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 3.25% | ||
Total debt | $ 26.7 | 26.4 | |
Senior Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.125% | ||
Total debt | $ 250 | 250 | 250 |
Capital Leases | |||
Debt Instrument [Line Items] | |||
Total debt | 19.9 | 18.8 | 17.7 |
Other | |||
Debt Instrument [Line Items] | |||
Total debt | $ 22 | $ 23.6 | 3.5 |
Scenario, Previously Reported | |||
Debt Instrument [Line Items] | |||
Debt issuance costs | $ 4.5 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Detail) - USD ($) | Apr. 22, 2016 | Dec. 31, 2016 | Mar. 31, 2017 | Dec. 21, 2016 | Dec. 31, 2015 | Oct. 21, 2015 | Aug. 13, 2015 | Oct. 23, 2014 |
Line of Credit Facility [Line Items] | ||||||||
Carrying amount | $ 475,000,000 | $ 486,700,000 | $ 468,100,000 | |||||
Short-term Debt | 5,000,000 | 4,400,000 | ||||||
Capital lease obligations | 18,800,000 | $ 50,000,000 | ||||||
Foreign subsidiaries borrowings | 42,400,000 | 800,000 | ||||||
Foreign subsidiaries outstanding bank guarantees | $ 9,900,000 | $ 3,900,000 | ||||||
Percentage ownership | 100.00% | |||||||
Weighted average interest rate | 5.73% | 5.47% | ||||||
Arkansas Development Finance Authority | Southwest Steel Processing LLC | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 11,000,000 | |||||||
Amount drawn | $ 6,200,000 | 6,100,000 | ||||||
Machinery and Equipment | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Capital lease obligations | 19,900,000 | |||||||
Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Capital lease obligations | $ 50,000,000 | |||||||
GH Electrotermia S.A. | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Carrying amount | $ 8,900,000 | |||||||
Short-term Debt | 5,000,000 | |||||||
Senior Notes due 2021 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Carrying amount | 250,000,000 | $ 250,000,000 | $ 250,000,000 | |||||
Stated interest rate | 8.125% | |||||||
Industrial Equipment Group European Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Carrying amount | 26,400,000 | $ 26,700,000 | ||||||
Stated interest rate | 3.25% | |||||||
Industrial Equipment Group European Facilities | Banco Bolbao Vizcaya Argentaria, S.A. | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | 36,900,000 | |||||||
Industrial Equipment Group European Facilities | Banco Bolbao Vizcaya Argentaria, S.A. | Line of Credit | GH Electrotermia S.A. | Financing Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Amount drawn | 26,400,000 | |||||||
Revolving credit facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Carrying amount | 132,800,000 | $ 145,800,000 | 169,000,000 | |||||
Revolving credit facility | Amendment No. 1 to the Amended Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 300,000,000 | |||||||
Amount drawn | $ 35,000,000 | |||||||
Inventory advance rate percentage | 65.00% | |||||||
Inventory advance rate percentage to be reduced to | 50.00% | |||||||
Term over which inventory advance rate percentage reduces | 36 months | |||||||
Term over which basis spread on variable interest rate reduces | 36 months | |||||||
Unused borrowing capacity | 106,200,000 | |||||||
Revolving credit facility | Amendment No. 1 to the Amended Credit Agreement | LIBOR | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 3.50% | |||||||
Revolving credit facility | The Amended Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Inventory advance rate percentage | 50.00% | |||||||
Term of debt instrument | 7 years | |||||||
Revolving credit facility | The Amended Credit Agreement | LIBOR | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 1.50% | |||||||
Revolving credit facility | The Amended Credit Agreement | LIBOR | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 2.50% | |||||||
Revolving credit facility | The Amended Credit Agreement | Prime lending rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | (0.25%) | |||||||
Revolving credit facility | The Amended Credit Agreement | Prime lending rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | (1.25%) | |||||||
Revolving credit facility | Banco Bolbao Vizcaya Argentaria, S.A. | Line of Credit | Financing Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 10,500,000 | |||||||
Amount drawn | 0 | 0 | ||||||
Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Carrying amount | $ 23,400,000 | $ 22,300,000 | $ 27,900,000 | |||||
Term Loan | Amendment No. 1 to the Amended Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 35,000,000 | |||||||
Term Loan | The Amended Credit Agreement | LIBOR | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 2.00% | |||||||
Term Loan | The Amended Credit Agreement | LIBOR | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 3.00% | |||||||
Term Loan | The Amended Credit Agreement | Prime lending rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | (0.75%) | |||||||
Term Loan | The Amended Credit Agreement | Prime lending rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 0.25% | |||||||
Canadian Sub-Limit | Amendment No. 1 to the Amended Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 35,000,000 | |||||||
Canadian Sub-Limit | The Amended Credit Agreement | Canadian deposit offered rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 1.50% | |||||||
Canadian Sub-Limit | The Amended Credit Agreement | Canadian deposit offered rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 2.50% | |||||||
Canadian Sub-Limit | The Amended Credit Agreement | Canadian prime lending rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 0.00% | |||||||
Canadian Sub-Limit | The Amended Credit Agreement | Canadian prime lending rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 1.00% | |||||||
Canadian Sub-Limit | The Amended Credit Agreement | US base rate | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 0.00% | |||||||
Canadian Sub-Limit | The Amended Credit Agreement | US base rate | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable interest rate - plus (minus) | 1.00% | |||||||
European Sub-Limit | Amendment No. 1 to the Amended Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 25,000,000 | |||||||
Scenario, Previously Reported | Revolving credit facility | Amendment No. 1 to the Amended Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Inventory advance rate percentage | 60.00% |
Financing Arrangements (Fair Va
Financing Arrangements (Fair Value of Debt) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying amount | $ 486.7 | $ 475 | $ 468.1 |
Level 1 | Carrying amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Carrying amount | 250 | 250 | 250 |
Level 1 | Fair value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair value | $ 258 | $ 257.5 | $ 263.4 |
Financing Arrangements (Sched58
Financing Arrangements (Schedule of Maturities of Long-term Debt) (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 24.7 |
2,018 | 20.8 |
2,019 | 138.4 |
2,020 | 8.1 |
2,021 | $ 263.1 |
Income Taxes (Income from Conti
Income Taxes (Income from Continuing Operations Before Income Taxes) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income from continuing operations before income tax expense | |||
United States | $ 16.3 | $ 44.9 | $ 54.3 |
Outside the United States | 25.6 | 25.8 | 18.5 |
Income before income taxes | $ 41.9 | $ 70.7 | $ 72.8 |
Income Taxes (Income Taxes) (De
Income Taxes (Income Taxes) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current expense: | |||||
Federal | $ 0.3 | $ 11.7 | $ 17.6 | ||
State | 0.2 | 0.7 | 0.8 | ||
Foreign | 6.6 | 6 | 6.2 | ||
Total | 7.1 | 18.4 | 24.6 | ||
Deferred expense (benefit): | |||||
Federal | 0.9 | 2.9 | 1.1 | ||
State | 0.5 | 0.6 | (0.8) | ||
Foreign | 0.7 | (0.4) | 0.3 | ||
Total | 2.1 | 3.1 | 0.6 | ||
Income tax expense | $ 4.7 | $ 1.6 | $ 9.2 | $ 21.5 | $ 25.2 |
Income Taxes (Reconciliation Be
Income Taxes (Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Rate reconciliation | |||||
Tax at U.S. statutory rate | $ 14.7 | $ 24.7 | $ 25.4 | ||
Effect of state income taxes, net | 0.2 | 0.6 | 1.4 | ||
Effect of foreign operations | (2.1) | (1.6) | (0.9) | ||
Valuation allowance | 0.5 | (0.7) | (1.1) | ||
Uncertain tax positions | (4) | 0.1 | 0.3 | ||
Non-deductible items | 0.6 | 0.5 | 1 | ||
Non-deductible compensation | 0.8 | 1.2 | 0.8 | ||
Manufacturer's deduction | (0.5) | (1.1) | (1.4) | ||
Other, net | (1) | (2.2) | (0.3) | ||
Income tax expense | $ 4.7 | $ 1.6 | $ 9.2 | $ 21.5 | $ 25.2 |
Income Taxes (Significant Compo
Income Taxes (Significant Components of the Company's Net Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Postretirement benefit obligation | $ 3.6 | $ 4.8 |
Inventory | 13.7 | 12 |
Net operating loss and credit carryforwards | 10.8 | 6.1 |
Warranty reserve | 2.1 | 1.9 |
Accrued litigation | 2.8 | 2.9 |
Compensation | 4.1 | 6 |
Other | 9.8 | 10.1 |
Total deferred income tax assets | 46.9 | 43.8 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 16 | 15.2 |
Pension | 22.1 | 21 |
Intangible assets | 23.3 | 19.3 |
Other | 5.2 | 1.6 |
Total deferred income tax liabilities | 66.6 | 57.1 |
Net deferred income tax liabilities prior to valuation allowances | (19.7) | (13.3) |
Valuation allowances | (5.3) | (4.8) |
Net deferred income tax liability | $ (25) | $ (18.1) |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax asset, cumulative loss position term | 3 years | 3 years | |||
Valuation allowances | $ 5.3 | $ 4.8 | |||
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 2.4 | 5.5 | |||
Net interest and penalties | (1.4) | 0.2 | |||
Payment of interest and penalties accrued | 0.4 | 1.9 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 1.4 | 1.4 | |||
Undistributed earnings | 131.1 | ||||
Effective tax rate | 31.80% | 37.20% | |||
Foreign Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards for income tax purposes | 22.1 | ||||
Operating loss carryforward, subject to expiration | 5.5 | ||||
Valuation allowances | 4.5 | $ 4.2 | |||
State and Local Jurisdiction | |||||
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforwards for income tax purposes | 2.7 | ||||
Valuation allowance against state net operating loss carryforward | $ 1.3 | ||||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Tax Credit Carryforward, Amount | $ 1.1 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Beginning and Ending amount of Unrecognized tax benefits | |||
Unrecognized Tax Benefit, Beginning of Period | $ 6.3 | $ 6.5 | $ 5.9 |
Gross Increases to Tax Positions Related to Prior Years | 0.3 | 0.3 | 0.8 |
Gross Decreases to Tax Positions Related to Prior Years | 0 | (0.1) | (0.2) |
Expiration of Statute of Limitations | (3.7) | (0.4) | 0 |
Unrecognized Tax Benefit, End of Period | $ 2.9 | $ 6.3 | $ 6.5 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | |||
Outstanding - beginning of year, Number of Shares (in shares) | 60,000 | ||
Granted, Number of Shares (in shares) | 0 | 0 | 0 |
Exercised, Number of Shares (in shares) | (22,000) | ||
Canceled or expired, Number of Shares (in shares) | 0 | ||
Outstanding - end of year, Number of Shares (in shares) | 38,000 | 60,000 | |
Options exercisable, Number of Shares (in shares) | 38,000 | ||
Weighted Average Exercise Price | |||
Outstanding - beginning of year, Weighted Average Exercise Price (in dollars per share) | $ 19.41 | ||
Granted, Weighted Average Exercise Price (in dollars per share) | 0 | ||
Exercised, Weighted Average Exercise Price (in dollars per share) | 19.60 | ||
Canceled or expired, Weighted Average Exercise Price (in dollars per share) | 0 | ||
Outstanding - end of year, Weighted Average Exercise Price (in dollars per share) | 19.30 | $ 19.41 | |
Options Exercisable - end of year, Weighted Average Exercise Price (in dollars per share) | $ 19.30 | ||
Outstanding - end of year, weighted average remaining contractual term | 1 year 1 month 6 days | ||
Options Exercisable, Weighted average remaining contractual life | 1 year 1 month 6 days | ||
Outstanding - end of year, Aggregate intrinsic value | $ 0.9 | ||
Options Exercisable, Aggregate intrinsic value | $ 0.9 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Intrinsic value of options exercised | $ 0.9 | $ 3.3 | $ 0.1 | ||
Proceeds from the exercise of stock options | $ 0.5 | $ 1.2 | $ 0 | ||
Stock option awards granted (in shares) | 0 | 0 | 0 | ||
Shares awarded (in shares) | 1,500 | ||||
Vested, Number of Shares (in shares) | (1,500) | ||||
Stock-based compensation expense | $ 2.2 | $ 2.5 | |||
Fair value of restricted stock units vested | $ 5.1 | $ 9 | $ 11.5 | ||
Unrecognized compensation cost related to non-vested stock-based compensation | $ 6 | $ 7.5 | |||
Unrecognized compensation expense, expected weighted average recognition period | 1 year 6 months | 1 year 4 months 24 days | |||
Number of shares available for grant (in shares) | 367,977 | ||||
Restricted Stock and Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 10.6 | $ 7.3 | $ 5.8 | ||
Range One | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Exercise price range, lower limit (in dollars per share) | $ 15.61 | ||||
Exercise price range, upper limit (in dollars per share) | $ 24.92 |
Stock-Based Compensation (Sum67
Stock-Based Compensation (Summary of Restricted Share Activity) (Detail) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | |
Number of Shares | ||||
Granted, number of shares (in shares) | 1,500 | |||
Vested, Number of Shares (in shares) | (1,500) | |||
Performance Shares | ||||
Number of Shares | ||||
Vested, Number of Shares (in shares) | (55,000) | (40,000) | ||
Restricted Stock Units (RSUs) [Member] | ||||
Number of Shares | ||||
Granted, number of shares (in shares) | 6,020 | |||
Time-Based | Restricted Stock | ||||
Number of Shares | ||||
Outstanding - beginning of year, number of shares (in shares) | 216,916 | 208,429 | 208,429 | |
Granted, number of shares (in shares) | 15,500 | 58,570 | ||
Vested, Number of Shares (in shares) | (9,499) | (126,083) | ||
Canceled or expired, number of shares (in shares) | (2,000) | (4,000) | ||
Outstanding - end of period, number of shares (in shares) | 330,917 | 216,916 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding - beginning of year, Weighted Average Grant Date Fair Value (in dollars per share) | $ 36.94 | $ 36.61 | $ 36.61 | |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 42.60 | 30.72 | ||
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 35.13 | 41 | ||
Canceled or expired, Weighted Average Grant Date Fair Value (in dollars per share) | 37.87 | 36.34 | ||
Outstanding - end of year, Weighted Average Grant Date Fair Value (in dollars per share) | $ 36.53 | $ 36.94 | ||
Vesting period | 2 years | 2 years | ||
Time-Based | Restricted Stock and Performance Shares | ||||
Number of Shares | ||||
Performance- to time-based, number of shares (in shares) | 110,000 | 80,000 | ||
Weighted Average Grant Date Fair Value | ||||
Performance- to time-based, weighted average grant date fair value (in dollars per share) | $ 34.78 | $ 48.72 | ||
Performance-Based | Restricted Stock | ||||
Number of Shares | ||||
Outstanding - beginning of year, number of shares (in shares) | 165,000 | 120,000 | 120,000 | |
Granted, number of shares (in shares) | 0 | 165,000 | ||
Vested, Number of Shares (in shares) | (55,000) | (40,000) | ||
Performance- to time-based, number of shares (in shares) | (110,000) | (80,000) | ||
Canceled or expired, number of shares (in shares) | 0 | 0 | ||
Outstanding - end of period, number of shares (in shares) | 0 | 165,000 | ||
Weighted Average Grant Date Fair Value | ||||
Outstanding - beginning of year, Weighted Average Grant Date Fair Value (in dollars per share) | $ 34.78 | $ 48.72 | $ 48.72 | |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | 0 | 34.78 | ||
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | 34.78 | 48.72 | ||
Canceled or expired, Weighted Average Grant Date Fair Value (in dollars per share) | 0 | 0 | ||
Outstanding - end of year, Weighted Average Grant Date Fair Value (in dollars per share) | $ 0 | $ 34.78 | ||
Performance-Based | Restricted Stock and Performance Shares | ||||
Number of Shares | ||||
Performance- to time-based, number of shares (in shares) | (110,000) | (80,000) | ||
Weighted Average Grant Date Fair Value | ||||
Performance- to time-based, weighted average grant date fair value (in dollars per share) | $ 34.78 | $ 48.72 |
Commitments, Contingencies an68
Commitments, Contingencies and Litigation Settlement (Detail) - USD ($) $ in Millions | Mar. 07, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2013 | May 31, 2013 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 28, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | |||||||||
Litigation settlement gain | $ 3.3 | $ 0 | |||||||
TMK IPSCO | |||||||||
Loss Contingencies [Line Items] | |||||||||
Damages awarded | $ 2.2 | $ 2.2 | $ 5.2 | ||||||
Additional damages sought | $ 3.8 | ||||||||
Loss contingency accrual | $ 7.3 | $ 7.4 | |||||||
Direct damages sought | $ 10 | ||||||||
TMK IPSCO | Settled Litigation | |||||||||
Loss Contingencies [Line Items] | |||||||||
Payments for Legal Settlements | $ 4 |
Lease Arrangements (Schedule of
Lease Arrangements (Schedule of Future Minimum Lease Commitments) (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Capital Leases | |
2,017 | $ 6.6 |
2,018 | 4.3 |
2,019 | 4.3 |
2,020 | 3.9 |
2,021 | 0.7 |
Thereafter | 0 |
Total minimum lease payments | 19.8 |
Amounts representing interest | (1) |
Present value of minimum lease payments | 18.8 |
Current maturities | (6.1) |
Long-term capital lease obligation | 12.7 |
Operating leases | |
2,017 | 15.8 |
2,018 | 11.9 |
2,019 | 8 |
2,020 | 5.4 |
2,021 | 3.8 |
Thereafter | 17.6 |
Total minimum lease payments | $ 62.5 |
Lease Arrangements (Detail)
Lease Arrangements (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 13, 2015 | |
Operating Leased Assets [Line Items] | ||||
Rental expense | $ 18.5 | $ 19.7 | $ 18.6 | |
Capital lease obligations | 18.8 | $ 50 | ||
Affiliated Entity | ||||
Operating Leased Assets [Line Items] | ||||
Rental expense | $ 2.4 |
Lease Arrangements (Schedule 71
Lease Arrangements (Schedule of Capital Leased Assets) (Detail) - Machinery and Equipment - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Operating Leased Assets [Line Items] | ||
Leased properties under capital leases | $ 20.4 | $ 16.2 |
Less accumulated depreciation | 2.3 | 0.5 |
Capital lease assets, net | $ 18.1 | $ 15.7 |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits (Change in benefit obligation) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets | |||||
Fair value of plan assets at beginning of year | $ 120.2 | $ 117.3 | $ 117.3 | ||
Fair value of plan assets at end of year | 120.2 | $ 117.3 | |||
Pension Benefits | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 58.5 | 58.4 | 58.4 | 61.1 | |
Service cost | 0.6 | 0.6 | 2.4 | 2.6 | $ 2.2 |
Interest cost | 0.5 | 0.5 | 1.8 | 2.3 | 2.2 |
Actuarial losses (gains) | 0.5 | (3) | |||
Benefits and expenses paid, net of contributions | (4.6) | (4.6) | |||
Benefit obligation at end of year | 58.5 | 58.4 | 61.1 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | 120.2 | 117.3 | 117.3 | 125.7 | |
Actual return on plan assets | 8.3 | (2.9) | |||
Company contributions | 0 | 0 | |||
Cash transfer to fund postretirement benefit payments | (0.8) | (0.9) | |||
Benefits and expenses paid, net of contributions | (4.6) | (4.6) | |||
Fair value of plan assets at end of year | 120.2 | 117.3 | 125.7 | ||
Funded (underfunded) status of the plans | 61.7 | 58.9 | |||
Postretirement Benefits | |||||
Change in benefit obligation | |||||
Benefit obligation at beginning of year | 10 | 13.5 | 13.5 | 17 | |
Service cost | 0 | 0 | 0 | 0 | 0 |
Interest cost | 0.1 | 0.1 | 0.3 | 0.5 | 0.6 |
Actuarial losses (gains) | (2.6) | (2.7) | |||
Benefits and expenses paid, net of contributions | (1.2) | (1.3) | |||
Benefit obligation at end of year | 10 | 13.5 | 17 | ||
Change in plan assets | |||||
Fair value of plan assets at beginning of year | $ 0 | $ 0 | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |||
Company contributions | 1.2 | 1.3 | |||
Cash transfer to fund postretirement benefit payments | 0 | 0 | |||
Benefits and expenses paid, net of contributions | (1.2) | (1.3) | |||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | ||
Funded (underfunded) status of the plans | $ (10) | $ (13.5) |
Pensions and Postretirement B73
Pensions and Postretirement Benefits (Amounts recognized in the balance sheet) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension assets | $ 61.7 | $ 58.9 |
Pension Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension assets | 61.7 | 58.9 |
Other current liabilities | 0 | 0 |
Other long-term liabilities | 0 | 0 |
Amounts recognized in consolidated balance sheets - net assets (liabilities) | 61.7 | 58.9 |
Amounts recognized in Accumulated other comprehensive loss | ||
Net actuarial loss | 25.8 | 25.2 |
Net prior service cost (credit) | 0.3 | 0.3 |
Accumulated other comprehensive loss | 26.1 | 25.5 |
Postretirement Benefits | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Pension assets | 0 | 0 |
Other current liabilities | 1.2 | 1.4 |
Other long-term liabilities | 8.8 | 12.1 |
Amounts recognized in consolidated balance sheets - net assets (liabilities) | (10) | (13.5) |
Amounts recognized in Accumulated other comprehensive loss | ||
Net actuarial loss | 1.7 | 4.4 |
Net prior service cost (credit) | (0.2) | (0.3) |
Accumulated other comprehensive loss | $ 1.5 | $ 4.1 |
Pensions and Postretirement B74
Pensions and Postretirement Benefits (Weighted-average asset allocation) (Detail) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Category | ||
Actual plan asset allocation | 100.00% | 100.00% |
Target plan asset allocation | 100.00% | |
Equity securities | ||
Asset Category | ||
Target plan asset allocation, minimum | 45.00% | |
Target plan asset allocation, maximum | 75.00% | |
Actual plan asset allocation | 61.90% | 62.70% |
Debt securities | ||
Asset Category | ||
Target plan asset allocation, minimum | 20.00% | |
Target plan asset allocation, maximum | 40.00% | |
Actual plan asset allocation | 24.60% | 25.40% |
Other | ||
Asset Category | ||
Target plan asset allocation, minimum | 0.00% | |
Target plan asset allocation, maximum | 20.00% | |
Actual plan asset allocation | 13.50% | 11.90% |
Pensions and Postretirement B75
Pensions and Postretirement Benefits (Assets by fair value hierarchy) (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 120.2 | $ 117.3 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 106.2 | 103.1 |
Common stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 40 | 38.3 |
Common stock | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 40 | 38.3 |
Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 29.1 |
Equity Funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 29.1 |
Foreign Stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.4 | 5.7 |
Foreign Stock | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.4 | 5.7 |
U.S. Government obligations | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.1 | 7.4 |
U.S. Government obligations | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.1 | 7.4 |
Fixed income funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14.1 | 14.6 |
Fixed income funds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14.1 | 14.6 |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6.3 | 6.8 |
Corporate Bonds | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6.3 | 6.8 |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.3 | 1.2 |
Cash and Cash Equivalents | Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.3 | 1.2 |
Common collective trust | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value: | 1.1 | 1.5 |
Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Investments measured at net asset value: | $ 12.9 | $ 12.7 |
Pensions and Postretirement B76
Pensions and Postretirement Benefits (Fair value assumptions) (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 3.91% | 4.13% | 3.82% | ||
Expected return on plan assets | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% | ||
Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rate | 3.63% | 3.80% | 3.60% | ||
Medical health care benefits rate increase | 6.50% | 6.75% | 7.00% | ||
Medical drug benefits rate increase | 6.50% | 6.75% | 7.00% | ||
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% | ||
Year of ultimate trend rate | 2,025 | 2,022 | 2,022 |
Pensions and Postretirement B77
Pensions and Postretirement Benefits (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Annual supplemental retirement benefit (up to) | $ 400,000 | ||
Supplemental retirement benefit, payment period, maximum (up to) | 13 years | ||
Supplemental retirement benefit, credited service period (up to) | 7 years | ||
Supplemental retirement benefit, service credit period | 20 years | ||
Supplemental retirement benefit, percent of pension to be received | 100.00% | ||
Supplemental retirement benefit, expense | $ 200,000 | $ 600,000 | $ 500,000 |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reductions in service costs | (100,000) | ||
Reductions in interest costs | (500,000) | ||
Estimated net loss, prior service cost and net transition obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost | 1,100,000 | ||
Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reductions in interest costs | (100,000) | ||
Estimated net loss, prior service cost and net transition obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost | $ 100,000 | ||
Minimum | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Spot rates used to determine service and interest costs | 3.29% | ||
Minimum | Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Reductions in service costs | $ 0 | ||
Spot rates used to determine service and interest costs | 2.93% | ||
Maximum | Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Spot rates used to determine service and interest costs | 4.19% | ||
Maximum | Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Spot rates used to determine service and interest costs | 4.43% |
Pension and Postretirement Be78
Pension and Postretirement Benefits (Components of net periodic benefit) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Benefits | |||||
Components of net periodic benefit cost | |||||
Service costs | $ 0.6 | $ 0.6 | $ 2.4 | $ 2.6 | $ 2.2 |
Interest costs | 0.5 | 0.5 | 1.8 | 2.3 | 2.2 |
Expected return on plan assets | (2.4) | (2.4) | (9.4) | (10.2) | (10.1) |
Amortization of prior service cost (credit) | 0 | 0 | 0.1 | ||
Recognized net actuarial loss | 0.3 | 0.3 | 1.1 | 0.3 | 0 |
Net periodic benefit (income) costs | (1) | (1) | (4.1) | (5) | (5.6) |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||||
AOCI at beginning of year | $ 26.1 | $ 25.5 | 25.5 | 15.7 | 2.2 |
Net loss (gain) arising during the year | 1.7 | 10.1 | 13.1 | ||
Recognition of prior service credit | 0 | 0 | 0 | ||
Recognition of actuarial loss | (1.1) | (0.3) | 0.4 | ||
Total recognized in accumulated other comprehensive loss at end of year | $ 26.1 | $ 25.5 | $ 15.7 | ||
Weighted average: | |||||
Discount rate | 3.91% | 4.13% | |||
Expected return on plan assets | 8.25% | 8.25% | 8.25% | 8.25% | 8.25% |
Postretirement Benefits | |||||
Components of net periodic benefit cost | |||||
Service costs | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Interest costs | 0.1 | 0.1 | 0.3 | 0.5 | 0.6 |
Expected return on plan assets | 0 | 0 | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (0.1) | (0.1) | (0.1) | ||
Recognized net actuarial loss | 0 | 0.1 | 0.1 | 0.5 | 0.5 |
Net periodic benefit (income) costs | 0.1 | 0.2 | 0.3 | 1 | 1 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||||
AOCI at beginning of year | $ 1.5 | $ 4.1 | 4.1 | 7.2 | 5.8 |
Net loss (gain) arising during the year | (2.6) | (2.7) | 1.8 | ||
Recognition of prior service credit | 0.1 | 0.1 | 0.1 | ||
Recognition of actuarial loss | (0.1) | (0.5) | (0.5) | ||
Total recognized in accumulated other comprehensive loss at end of year | $ 1.5 | 4.1 | $ 7.2 | ||
Weighted average: | |||||
Discount rate | 3.63% | 3.80% | |||
Postretirement Benefits | Scenario, Previously Reported | |||||
Components of net periodic benefit cost | |||||
Interest costs | $ 0.6 |
Pensions and Postretirement B79
Pensions and Postretirement Benefits (Expected future benefit payments) (Detail) $ in Millions | Dec. 31, 2016USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 4.7 |
2,018 | 4.4 |
2,019 | 4.3 |
2,020 | 4.5 |
2,021 | 4.6 |
2022 to 2026 | 23.4 |
Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1.1 |
2,018 | 1 |
2,019 | 1 |
2,020 | 0.9 |
2,021 | 0.8 |
2022 to 2026 | 3.5 |
Postretirement Benefits | Gross Including Medicare Subsidy | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 1.3 |
2,018 | 1.2 |
2,019 | 1.1 |
2,020 | 1 |
2,021 | 0.9 |
2022 to 2026 | 4 |
Postretirement Benefits | Expected Medicare Subsidy | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 0.2 |
2,018 | 0.2 |
2,019 | 0.1 |
2,020 | 0.1 |
2,021 | 0.1 |
2022 to 2026 | $ 0.5 |
Pensions and Postretirement B80
Pensions and Postretirement Benefits (Effect of one-percentage-point change in the assumed health care cost trend rate) (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Compensation and Retirement Disclosure [Abstract] | |
Effect on total of service and interest cost components, 1-percentage point increase | $ 0 |
Effect on total of service and interest cost components, 1-percentage point decrease | 0 |
Effect on postretirement benefit obligation, 1-percentage point increase | 0.7 |
Effect on postretirement benefit obligation, 1-percentage point decrease | $ (0.6) |
Accumulated Other Comprehensi81
Accumulated Other Comprehensive Income (Loss) (Components of accumulated comprehensive loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ 231.7 | $ 202.3 | $ 202.3 | $ 177.9 | $ 150.6 |
Other comprehensive income (loss) | 4.1 | 2.8 | (12.7) | (16) | (17.4) |
Ending balance | 248.3 | 231.7 | 202.3 | 177.9 | |
Cumulative Translation Adjustment | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (30.8) | (16.9) | (16.9) | (5.1) | 2.8 |
Other comprehensive income (loss) | 3.9 | 2.6 | (13.9) | (11.8) | (7.9) |
Ending balance | (26.9) | (14.3) | (30.8) | (16.9) | (5.1) |
Pension and Postretirement Benefits | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (11.9) | (13.1) | (13.1) | (8.9) | 0.6 |
Other comprehensive income (loss) | 0.2 | 0.2 | 1.2 | (4.2) | (9.5) |
Ending balance | (11.7) | (12.9) | (11.9) | (13.1) | (8.9) |
Total | |||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (42.7) | (30) | (30) | (14) | 3.4 |
Ending balance | $ (38.6) | $ (27.2) | $ (42.7) | $ (30) | $ (14) |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) | Mar. 01, 2017 | Jan. 31, 2017 | Apr. 17, 2017 | Mar. 31, 2017 |
Subsequent Event [Line Items] | ||||
Dividend declared (in dollars per share) | $ 0.125 | |||
Dividend paid | $ 1,600,000 | |||
Senior Notes due 2021 | ||||
Subsequent Event [Line Items] | ||||
Stated interest rate | 8.125% | |||
Subsequent Event | Senior Notes Due 2027 | Senior Notes due 2021 | ||||
Subsequent Event [Line Items] | ||||
Aggregate principal amount | $ 350,000,000 | |||
Stated interest rate | 6.625% | |||
Subsequent Event | Seventh Amendment Credit Agreement | Revolving credit facility | ||||
Subsequent Event [Line Items] | ||||
Maximum borrowing capacity | $ 350,000,000 | |||
Option to increase capacity | $ 100,000,000 |
Supplemental Guarantor Inform83
Supplemental Guarantor Information (Condensed Consolidating Balance Sheets) (Detail) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||||||
Cash and cash equivalents | $ 57.9 | $ 54.4 | $ 48.7 | $ 48.4 | $ 48.3 | $ 43.7 |
Accounts receivable, net | 225.9 | 194.4 | 199.3 | |||
Inventories, net | 248.6 | 240.6 | 249 | |||
Receivable from affiliates | 14.9 | 12.8 | 8.6 | |||
Other current assets | 56 | 53.3 | 39 | |||
Total current assets | 603.3 | 555.5 | 544.3 | |||
Investment in subsidiaries | 0 | 0 | 0 | |||
Intercompany advances | 0 | 0 | 0 | |||
Property, plant and equipment, net | 171.3 | 169.6 | 154.1 | |||
Goodwill | 87.1 | 86.6 | 82 | 89.5 | 60.4 | |
Intangible assets, net | 95.1 | 96.6 | 92.8 | |||
Other long-term assets | 66.4 | |||||
Other long-term assets | 73.6 | 9.6 | 7.5 | |||
Other long-term assets | 73.6 | 71.3 | ||||
Total assets | 1,030.4 | 979.6 | 939.6 | 958.8 | ||
Current liabilities: | ||||||
Trade accounts payable | 154.5 | 133.7 | 129.7 | |||
Payable to affiliates | 7 | 7 | 6.6 | |||
Current portion of long-term and short-term debt | 29.7 | 30.8 | 17.8 | |||
Accrued expenses and other | 87.2 | 78.6 | 77.5 | |||
Total current liabilities | 278.4 | 250.1 | 231.6 | |||
Long-term liabilities, less current portion: | ||||||
Debt | 452 | 439 | 445.8 | |||
Deferred income taxes | 29.3 | 29 | 21.4 | |||
Other long-term liabilities | 22.4 | 29.8 | 38.5 | |||
Total long-term liabilities | 503.7 | 497.8 | 505.7 | |||
Intercompany advances | 0 | 0 | 0 | |||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 238 | 221.7 | 195.4 | |||
Noncontrolling interest | 10.3 | 10 | 6.9 | |||
Total equity | 248.3 | 231.7 | 202.3 | 177.9 | 150.6 | |
Total liabilities and shareholder's equity | 1,030.4 | 979.6 | 939.6 | |||
Reportable Legal Entities | Parent | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | 0 | |||
Inventories, net | 0 | 0 | 0 | |||
Receivable from affiliates | 0 | 0 | 0 | |||
Other current assets | 1.4 | 0.7 | 0.8 | |||
Total current assets | 1.4 | 0.7 | 0.8 | |||
Investment in subsidiaries | 511.3 | 492.8 | 495.4 | |||
Intercompany advances | 298.4 | 296.5 | 249.2 | |||
Property, plant and equipment, net | 6.1 | 6.2 | 6.7 | |||
Goodwill | 0 | 0 | 0 | |||
Intangible assets, net | 0 | 0 | 0 | |||
Other long-term assets | 57.2 | |||||
Other long-term assets | 64 | |||||
Other long-term assets | 62.8 | |||||
Total assets | 881.2 | 859 | 809.3 | |||
Current liabilities: | ||||||
Trade accounts payable | 0 | 0 | 0 | |||
Payable to affiliates | 0 | 0 | 0 | |||
Current portion of long-term and short-term debt | 13.2 | 13.2 | 11.7 | |||
Accrued expenses and other | 17.5 | 10.5 | 3.5 | |||
Total current liabilities | 30.7 | 23.7 | 15.2 | |||
Long-term liabilities, less current portion: | ||||||
Debt | 401.3 | 389.2 | 430.6 | |||
Deferred income taxes | 0 | 0 | 0 | |||
Other long-term liabilities | 15.7 | 16.1 | 16.4 | |||
Total long-term liabilities | 417 | 405.3 | 447 | |||
Intercompany advances | 185.2 | 198.3 | 144.8 | |||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 238 | 221.7 | 195.4 | |||
Noncontrolling interest | 10.3 | 10 | 6.9 | |||
Total equity | 248.3 | 231.7 | 202.3 | |||
Total liabilities and shareholder's equity | 881.2 | 859 | 809.3 | |||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | 0.1 | 0.1 | 3.8 | 0.7 |
Accounts receivable, net | 153.3 | 125.2 | 139.7 | |||
Inventories, net | 173.8 | 172.9 | 183.1 | |||
Receivable from affiliates | 0 | 0 | ||||
Other current assets | 32.3 | 28.3 | 34.2 | |||
Total current assets | 359.4 | 326.4 | 357.1 | |||
Investment in subsidiaries | 223.8 | 213.8 | 173.5 | |||
Intercompany advances | 78.5 | 78.1 | 65.4 | |||
Property, plant and equipment, net | 98.9 | 98.2 | 112.2 | |||
Goodwill | 56.8 | 56.8 | 56.5 | |||
Intangible assets, net | 63.6 | 64.8 | 69.4 | |||
Other long-term assets | 4.8 | |||||
Other long-term assets | 4.3 | |||||
Other long-term assets | 4.5 | |||||
Total assets | 885.3 | 842.6 | 838.9 | |||
Current liabilities: | ||||||
Trade accounts payable | 117.3 | 100.3 | 91.5 | |||
Payable to affiliates | 0 | 0 | 0 | |||
Current portion of long-term and short-term debt | 6 | 6.4 | 4.7 | |||
Accrued expenses and other | 36.5 | 36.8 | 53.9 | |||
Total current liabilities | 159.8 | 143.5 | 150.1 | |||
Long-term liabilities, less current portion: | ||||||
Debt | 12.2 | 12.2 | 14.6 | |||
Deferred income taxes | 20.6 | 20.4 | 17.1 | |||
Other long-term liabilities | 1.1 | 8.5 | 13 | |||
Total long-term liabilities | 33.9 | 41.1 | 44.7 | |||
Intercompany advances | 208 | 192.2 | 172.9 | |||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 483.6 | 465.8 | 471.2 | |||
Noncontrolling interest | 0 | |||||
Total equity | 483.6 | 465.8 | 471.2 | |||
Total liabilities and shareholder's equity | 885.3 | 842.6 | 838.9 | |||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||||
Current assets: | ||||||
Cash and cash equivalents | 57.9 | 54.4 | 48.6 | 48.3 | 44.5 | 43 |
Accounts receivable, net | 72.6 | 69.2 | 59.6 | |||
Inventories, net | 74.8 | 67.7 | 65.9 | |||
Receivable from affiliates | 14.9 | 12.8 | 8.6 | |||
Other current assets | 22.3 | 24.3 | 4 | |||
Total current assets | 242.5 | 228.4 | 186.4 | |||
Investment in subsidiaries | 0 | 0 | 0 | |||
Intercompany advances | 111.3 | 110.5 | 151.6 | |||
Property, plant and equipment, net | 66.3 | 65.2 | 35.2 | |||
Goodwill | 30.3 | 29.8 | 25.5 | |||
Intangible assets, net | 31.5 | 31.8 | 23.4 | |||
Other long-term assets | 4.4 | |||||
Other long-term assets | 5.3 | |||||
Other long-term assets | 4 | |||||
Total assets | 487.2 | 469.7 | 426.5 | |||
Current liabilities: | ||||||
Trade accounts payable | 37.2 | 33.4 | 38.2 | |||
Payable to affiliates | 7 | 7 | 6.6 | |||
Current portion of long-term and short-term debt | 10.5 | 11.2 | 1.4 | |||
Accrued expenses and other | 33.2 | 31.3 | 20.1 | |||
Total current liabilities | 87.9 | 82.9 | 66.3 | |||
Long-term liabilities, less current portion: | ||||||
Debt | 38.5 | 37.6 | 0.6 | |||
Deferred income taxes | 8.7 | 8.6 | 4.3 | |||
Other long-term liabilities | 5.6 | 5.2 | 9.1 | |||
Total long-term liabilities | 52.8 | 51.4 | 14 | |||
Intercompany advances | 95 | 94.6 | 148.5 | |||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 241.2 | 230.8 | 190.8 | |||
Noncontrolling interest | 10.3 | 10 | 6.9 | |||
Total equity | 251.5 | 240.8 | 197.7 | |||
Total liabilities and shareholder's equity | 487.2 | 469.7 | 426.5 | |||
Reclassifications/ Eliminations | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | $ 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | 0 | |||
Inventories, net | 0 | 0 | 0 | |||
Receivable from affiliates | 0 | 0 | 0 | |||
Other current assets | 0 | 0 | 0 | |||
Total current assets | 0 | 0 | 0 | |||
Investment in subsidiaries | (735.1) | (706.6) | (668.9) | |||
Intercompany advances | (488.2) | (485.1) | (466.2) | |||
Property, plant and equipment, net | 0 | 0 | 0 | |||
Goodwill | 0 | 0 | 0 | |||
Intangible assets, net | 0 | 0 | 0 | |||
Other long-term assets | 0 | |||||
Other long-term assets | 0 | |||||
Other long-term assets | 0 | |||||
Total assets | (1,223.3) | (1,191.7) | (1,135.1) | |||
Current liabilities: | ||||||
Trade accounts payable | 0 | 0 | 0 | |||
Payable to affiliates | 0 | 0 | 0 | |||
Current portion of long-term and short-term debt | 0 | 0 | 0 | |||
Accrued expenses and other | 0 | 0 | 0 | |||
Total current liabilities | 0 | 0 | 0 | |||
Long-term liabilities, less current portion: | ||||||
Debt | 0 | 0 | 0 | |||
Deferred income taxes | 0 | 0 | 0 | |||
Other long-term liabilities | 0 | 0 | 0 | |||
Total long-term liabilities | 0 | 0 | 0 | |||
Intercompany advances | (488.2) | (485.1) | (466.2) | |||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | (724.8) | (696.6) | (662) | |||
Noncontrolling interest | (10.3) | (10) | (6.9) | |||
Total equity | (735.1) | (706.6) | (668.9) | |||
Total liabilities and shareholder's equity | $ (1,223.3) | $ (1,191.7) | $ (1,135.1) |
Supplemental Guarantor Inform84
Supplemental Guarantor Information (Consolidating Statements of Operations and Comprehensive Income (Loss)) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidating statement of operations | |||||
Net sales | $ 343.8 | $ 328 | $ 1,276.9 | $ 1,463.8 | $ 1,378.7 |
Cost of sales | 288.3 | 280.2 | 1,073.9 | 1,228.6 | 1,144.2 |
Gross profit | 55.5 | 47.8 | 203 | 235.2 | 234.5 |
Selling, general and administrative expenses | 36.6 | 32.4 | 128.9 | 134.4 | 135.6 |
Asset impairment charge | 0 | 4 | 4 | 0 | 0 |
Litigation judgment costs | 0 | 2.2 | 0 | ||
Litigation settlement gain | (3.3) | 0 | |||
Income (loss) from subsidiaries | 0 | 0 | 0 | 0 | 0 |
Operating income | 22.2 | 11.4 | 70.1 | 98.6 | 98.9 |
Interest expense | 7.4 | 7.1 | 28.2 | 27.9 | 26.1 |
Income (loss) before income taxes | 14.8 | 4.3 | 41.9 | 70.7 | 72.8 |
Income tax expense | 4.7 | 1.6 | 9.2 | 21.5 | 25.2 |
Net income | 10.1 | 2.7 | 32.7 | 49.2 | 47.6 |
Net (income) loss attributable to noncontrolling interest | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Net income (loss) attributable to ParkOhio common shareholder | 9.8 | 2.7 | 32.2 | 48.6 | 46.3 |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustment | 3.9 | 2.6 | (13.9) | (11.8) | (7.9) |
Pension and OPEB activity, net of tax adjustments | 0.2 | 0.2 | 1.2 | (4.2) | (9.5) |
Comprehensive income (loss), net of tax | 14.2 | 5.5 | 20 | 33.2 | 30.2 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Comprehensive income (loss) attributable to ParkOhio common shareholder | 13.9 | 5.5 | 19.5 | 32.6 | 28.9 |
Reportable Legal Entities | Parent | |||||
Consolidating statement of operations | |||||
Net sales | 0 | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 6.3 | 4.1 | 24.2 | 28.6 | 26.2 |
Asset impairment charge | 0 | ||||
Litigation judgment costs | 2.2 | ||||
Litigation settlement gain | 0 | ||||
Income (loss) from subsidiaries | 23.2 | 13.6 | 84 | 106.6 | 99.5 |
Operating income | 16.9 | 9.5 | 59.8 | 75.8 | 73.3 |
Interest expense | 6.8 | 6.8 | 27.1 | 26.6 | 25.7 |
Income (loss) before income taxes | 10.1 | 2.7 | 32.7 | 49.2 | 47.6 |
Income tax expense | 0 | 0 | 0 | 0 | 0 |
Net income | 10.1 | 2.7 | 32.7 | 49.2 | 47.6 |
Net (income) loss attributable to noncontrolling interest | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Net income (loss) attributable to ParkOhio common shareholder | 9.8 | 2.7 | 32.2 | 48.6 | 46.3 |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustment | 3.9 | 2.6 | (13.9) | (11.8) | (7.9) |
Pension and OPEB activity, net of tax adjustments | 0.2 | 0.2 | 1.2 | (4.2) | (9.5) |
Comprehensive income (loss), net of tax | 14.2 | 5.5 | 20 | 33.2 | 30.2 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Comprehensive income (loss) attributable to ParkOhio common shareholder | 13.9 | 5.5 | 19.5 | 32.6 | 28.9 |
Reportable Legal Entities | Combined Guarantor Subsidiaries | |||||
Consolidating statement of operations | |||||
Net sales | 259.3 | 251 | 985.6 | 1,135.5 | 1,103 |
Cost of sales | 222.8 | 220.3 | 848.6 | 967.6 | 928.7 |
Gross profit | 36.5 | 30.7 | 137 | 167.9 | 174.3 |
Selling, general and administrative expenses | 19 | 18.5 | 69.3 | 70.6 | 74.7 |
Asset impairment charge | 4 | 4 | |||
Litigation judgment costs | 0 | ||||
Litigation settlement gain | (3.3) | ||||
Income (loss) from subsidiaries | 4.4 | 4.4 | 19.2 | 20.6 | 15.5 |
Operating income | 25.2 | 12.6 | 82.9 | 117.9 | 115.1 |
Interest expense | 0 | 0 | 0 | ||
Income (loss) before income taxes | 25.2 | 12.6 | 82.9 | 117.9 | 115.1 |
Income tax expense | 2.5 | (0.9) | 1.1 | 14.7 | 17.4 |
Net income | 22.7 | 13.5 | 81.8 | 103.2 | 97.7 |
Net (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
Net income (loss) attributable to ParkOhio common shareholder | 22.7 | 13.5 | 81.8 | 103.2 | 97.7 |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | |
Pension and OPEB activity, net of tax adjustments | 0.2 | 0.1 | 1.2 | (4.2) | (9.5) |
Comprehensive income (loss), net of tax | 22.9 | 13.6 | 83 | 99 | 88.2 |
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 0 |
Comprehensive income (loss) attributable to ParkOhio common shareholder | 22.9 | 13.6 | 83 | 99 | 88.2 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | |||||
Consolidating statement of operations | |||||
Net sales | 84.5 | 77 | 291.3 | 328.3 | 275.7 |
Cost of sales | 65.5 | 59.9 | 225.3 | 261 | 215.5 |
Gross profit | 19 | 17.1 | 66 | 67.3 | 60.2 |
Selling, general and administrative expenses | 11.3 | 9.8 | 35.4 | 35.2 | 34.7 |
Asset impairment charge | 0 | 0 | |||
Litigation judgment costs | 0 | ||||
Litigation settlement gain | 0 | ||||
Income (loss) from subsidiaries | 0 | 0 | 0 | 0 | 0 |
Operating income | 7.7 | 7.3 | 30.6 | 32.1 | 25.5 |
Interest expense | 0.6 | 0.3 | 1.1 | 1.3 | 0.4 |
Income (loss) before income taxes | 7.1 | 7 | 29.5 | 30.8 | 25.1 |
Income tax expense | 2.2 | 2.5 | 8.1 | 6.8 | 7.8 |
Net income | 4.9 | 4.5 | 21.4 | 24 | 17.3 |
Net (income) loss attributable to noncontrolling interest | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Net income (loss) attributable to ParkOhio common shareholder | 4.6 | 4.5 | 20.9 | 23.4 | 16 |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustment | 3.9 | 2.6 | (13.9) | (11.8) | (7.9) |
Pension and OPEB activity, net of tax adjustments | 0 | 0 | 0 | 0 | 0 |
Comprehensive income (loss), net of tax | 8.8 | 7.1 | 7.5 | 12.2 | 9.4 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.3) | 0 | (0.5) | (0.6) | (1.3) |
Comprehensive income (loss) attributable to ParkOhio common shareholder | 8.5 | 7.1 | 7 | 11.6 | 8.1 |
Reclassifications/ Eliminations | |||||
Consolidating statement of operations | |||||
Net sales | 0 | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | 0 |
Asset impairment charge | 0 | 0 | |||
Litigation judgment costs | 0 | ||||
Litigation settlement gain | 0 | ||||
Income (loss) from subsidiaries | (27.6) | (18) | (103.2) | (127.2) | (115) |
Operating income | (27.6) | (18) | (103.2) | (127.2) | (115) |
Interest expense | 0 | 0 | 0 | ||
Income (loss) before income taxes | (27.6) | (18) | (103.2) | (127.2) | (115) |
Income tax expense | 0 | 0 | 0 | 0 | 0 |
Net income | (27.6) | (18) | (103.2) | (127.2) | (115) |
Net (income) loss attributable to noncontrolling interest | 0.3 | 0 | 0.5 | 0.6 | 1.3 |
Net income (loss) attributable to ParkOhio common shareholder | (27.3) | (18) | (102.7) | (126.6) | (113.7) |
Other comprehensive income (loss) | |||||
Foreign currency translation adjustment | (3.9) | (2.6) | 13.9 | 11.8 | 7.9 |
Pension and OPEB activity, net of tax adjustments | (0.2) | (0.1) | (1.2) | 4.2 | 9.5 |
Comprehensive income (loss), net of tax | (31.7) | (20.7) | (90.5) | (111.2) | (97.6) |
Comprehensive (income) loss attributable to noncontrolling interest | 0.3 | 0 | 0.5 | 0.6 | 1.3 |
Comprehensive income (loss) attributable to ParkOhio common shareholder | $ (31.4) | $ (20.7) | $ (90) | $ (110.6) | $ (96.3) |
Supplemental Guarantor Inform85
Supplemental Guarantor Information (Condensed Consolidating Statements of Cash Flows) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed consolidating statement of cash flows | |||||
Net cash (used) provided by operating activities | $ (2.2) | $ 10 | $ 71.5 | $ 37.2 | $ 55.9 |
INVESTING ACTIVITIES | |||||
Purchases of property, plant and equipment | (6.1) | (8.9) | (28.5) | (36.5) | (25.8) |
Proceeds from sale of assets | 0 | 0 | 2.1 | ||
Business acquisition, net of cash acquired | (23.4) | 0 | (72.7) | ||
Net cash (used) by investing activities | (6.1) | (8.9) | (51.9) | (36.5) | (96.4) |
FINANCING ACTIVITIES | |||||
Intercompany account change | 0 | 0 | 0 | 0 | 0 |
Proceeds from other long-term debt | 0 | 4.7 | 34.9 | 2.3 | 14.2 |
(Payments) proceeds on term loans and other debt | (3) | (1.1) | (4.5) | (3.6) | (6.6) |
Payments on revolving credit facility, net | 13 | (4.5) | (36.2) | 7.9 | 50.3 |
Payments on capital lease facilities, net | (0.7) | (1.2) | |||
Proceeds from (payments on) capital lease facilities, net | 1.1 | (0.7) | (1.2) | 13.8 | 0 |
Proceeds from capital lease facilities | 13.8 | ||||
Payment of acquisition earn-out | (2) | 0 | 0 | ||
Dividend paid to parent | (2.5) | (17) | (10) | ||
Income tax effect of share-based compensation exercises and vesting | (0.6) | 0.9 | 1.3 | ||
Other | 0 | 0 | (1.3) | ||
Net cash (used) provided by financing activities | 11.1 | (1.6) | (12.1) | 4.3 | 47.9 |
Effect of exchange rate changes on cash | 0.7 | 0.8 | (1.5) | (4.9) | (2.8) |
(Decrease) increase in cash and cash equivalents | 3.5 | 0.3 | 6 | 0.1 | 4.6 |
Cash and cash equivalents at beginning of period | 54.4 | 48.4 | 48.4 | 48.3 | 43.7 |
Cash and cash equivalents at end of period | 57.9 | 48.7 | 54.4 | 48.4 | 48.3 |
Reportable Legal Entities | Parent | |||||
Condensed consolidating statement of cash flows | |||||
Net cash (used) provided by operating activities | (4.4) | (9.8) | (31.5) | (36.4) | (21.2) |
INVESTING ACTIVITIES | |||||
Purchases of property, plant and equipment | 0 | 0 | 0 | 0 | (0.2) |
Proceeds from sale of assets | 0 | ||||
Business acquisition, net of cash acquired | 0 | 0 | |||
Net cash (used) by investing activities | 0 | 0 | 0 | 0 | (0.2) |
FINANCING ACTIVITIES | |||||
Intercompany account change | (7.5) | 10.9 | 73.9 | 45.6 | (30.7) |
Proceeds from other long-term debt | 4.5 | 1.4 | 2.3 | 14.1 | |
(Payments) proceeds on term loans and other debt | (1.1) | (1.1) | (4.5) | (3.3) | (3.6) |
Payments on revolving credit facility, net | 13 | (4.5) | (36.2) | 7.9 | 50.3 |
Payments on capital lease facilities, net | 0 | 0 | |||
Proceeds from (payments on) capital lease facilities, net | 0 | ||||
Proceeds from capital lease facilities | 0 | ||||
Payment of acquisition earn-out | 0 | ||||
Dividend paid to parent | (2.5) | (17) | (10) | ||
Income tax effect of share-based compensation exercises and vesting | (0.6) | 0.9 | 1.3 | ||
Other | 0 | ||||
Net cash (used) provided by financing activities | 4.4 | 9.8 | 31.5 | 36.4 | 21.4 |
Effect of exchange rate changes on cash | 0 | 0 | 0 | 0 | 0 |
(Decrease) increase in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 0 |
Reportable Legal Entities | Combined Guarantor Subsidiaries | |||||
Condensed consolidating statement of cash flows | |||||
Net cash (used) provided by operating activities | (0.8) | 21.5 | 119.2 | 82 | 89.8 |
INVESTING ACTIVITIES | |||||
Purchases of property, plant and equipment | (4.5) | (4.5) | (20.4) | (29.6) | (8.3) |
Proceeds from sale of assets | 2.1 | ||||
Business acquisition, net of cash acquired | 0 | (47.5) | |||
Net cash (used) by investing activities | (4.5) | (4.5) | (20.4) | (29.6) | (53.7) |
FINANCING ACTIVITIES | |||||
Intercompany account change | 5.8 | (16.6) | (98.2) | (69) | (32.4) |
Proceeds from other long-term debt | 0.2 | 0.1 | 0 | 0 | |
(Payments) proceeds on term loans and other debt | (0.2) | 0 | 0 | 1.1 | (0.6) |
Payments on revolving credit facility, net | 0 | 0 | 0 | 0 | 0 |
Payments on capital lease facilities, net | (0.6) | (0.8) | |||
Proceeds from (payments on) capital lease facilities, net | (0.3) | ||||
Proceeds from capital lease facilities | 11.8 | ||||
Payment of acquisition earn-out | 0 | ||||
Dividend paid to parent | 0 | 0 | 0 | ||
Income tax effect of share-based compensation exercises and vesting | 0 | 0 | 0 | ||
Other | 0 | ||||
Net cash (used) provided by financing activities | 5.3 | (17) | (98.9) | (56.1) | (33) |
Effect of exchange rate changes on cash | 0 | 0 | 0 | 0 | 0 |
(Decrease) increase in cash and cash equivalents | 0 | 0 | (0.1) | (3.7) | 3.1 |
Cash and cash equivalents at beginning of period | 0 | 0.1 | 0.1 | 3.8 | 0.7 |
Cash and cash equivalents at end of period | 0 | 0.1 | 0 | 0.1 | 3.8 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | |||||
Condensed consolidating statement of cash flows | |||||
Net cash (used) provided by operating activities | 14.4 | 4.6 | 14.2 | 33.2 | 14.4 |
INVESTING ACTIVITIES | |||||
Purchases of property, plant and equipment | (1.6) | (4.4) | (8.1) | (6.9) | (17.3) |
Proceeds from sale of assets | 0 | ||||
Business acquisition, net of cash acquired | (23.4) | (25.2) | |||
Net cash (used) by investing activities | (1.6) | (4.4) | (31.5) | (6.9) | (42.5) |
FINANCING ACTIVITIES | |||||
Intercompany account change | (9.7) | (0.6) | (6.1) | (18.2) | 36 |
Proceeds from other long-term debt | 0 | 33.4 | 0 | 0.1 | |
(Payments) proceeds on term loans and other debt | (1.7) | 0 | 0 | (1.4) | (2.4) |
Payments on revolving credit facility, net | 0 | 0 | 0 | 0 | 0 |
Payments on capital lease facilities, net | (0.1) | (0.4) | |||
Proceeds from (payments on) capital lease facilities, net | 1.4 | ||||
Proceeds from capital lease facilities | 2 | ||||
Payment of acquisition earn-out | (2) | ||||
Dividend paid to parent | 0 | 0 | 0 | ||
Income tax effect of share-based compensation exercises and vesting | 0 | 0 | 0 | ||
Other | (1.3) | ||||
Net cash (used) provided by financing activities | (10) | (0.7) | 24.9 | (17.6) | 32.4 |
Effect of exchange rate changes on cash | 0.7 | 0.8 | (1.5) | (4.9) | (2.8) |
(Decrease) increase in cash and cash equivalents | 3.5 | 0.3 | 6.1 | 3.8 | 1.5 |
Cash and cash equivalents at beginning of period | 54.4 | 48.3 | 48.3 | 44.5 | 43 |
Cash and cash equivalents at end of period | 57.9 | 48.6 | 54.4 | 48.3 | 44.5 |
Reclassifications/ Eliminations | |||||
Condensed consolidating statement of cash flows | |||||
Net cash (used) provided by operating activities | (11.4) | (6.3) | (30.4) | (41.6) | (27.1) |
INVESTING ACTIVITIES | |||||
Purchases of property, plant and equipment | 0 | 0 | 0 | 0 | 0 |
Proceeds from sale of assets | 0 | ||||
Business acquisition, net of cash acquired | 0 | 0 | |||
Net cash (used) by investing activities | 0 | 0 | 0 | 0 | 0 |
FINANCING ACTIVITIES | |||||
Intercompany account change | 11.4 | 6.3 | 30.4 | 41.6 | 27.1 |
Proceeds from other long-term debt | 0 | 0 | 0 | 0 | |
(Payments) proceeds on term loans and other debt | 0 | 0 | 0 | 0 | 0 |
Payments on revolving credit facility, net | 0 | 0 | 0 | 0 | 0 |
Payments on capital lease facilities, net | 0 | 0 | |||
Proceeds from (payments on) capital lease facilities, net | 0 | ||||
Proceeds from capital lease facilities | 0 | ||||
Payment of acquisition earn-out | 0 | ||||
Dividend paid to parent | 0 | 0 | 0 | ||
Income tax effect of share-based compensation exercises and vesting | 0 | 0 | 0 | ||
Other | 0 | ||||
Net cash (used) provided by financing activities | 11.4 | 6.3 | 30.4 | 41.6 | 27.1 |
Effect of exchange rate changes on cash | 0 | 0 | 0 | 0 | 0 |
(Decrease) increase in cash and cash equivalents | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Asset Impairment (Detail)
Asset Impairment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||||
Asset impairment charge | $ 0 | $ 4 | $ 4 | $ 0 | $ 0 |