Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Feb. 06, 2014 | Jun. 30, 2013 |
Document Documentand Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'ITT Corporation | ' | ' |
Trading Symbol | 'ITT | ' | ' |
Entity Central Index Key | '0000216228 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 91.4 | ' |
Entity Public Float | ' | ' | $2.60 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Revenue | $2,496.90 | $2,227.80 | $2,085.60 |
Costs of revenue | 1,697.10 | 1,547.60 | 1,440.60 |
Gross profit | 799.8 | 680.2 | 645 |
Sales and marketing expenses | 216.2 | 180.4 | 163.6 |
General and administrative expenses | 297.7 | 221.7 | 166.3 |
Research and development expenses | 67.3 | 62.7 | 63.5 |
Asbestos-related costs, net | 32.8 | 50.9 | 100.4 |
Transformation costs | 2.2 | 13 | 396.1 |
Operating income (loss) | 183.6 | 151.5 | -244.9 |
Interest expense | 6.3 | 0.1 | 76.4 |
Interest income | 5 | 2.8 | 4.1 |
Miscellaneous expense (income), net | 1.8 | 5.1 | -1.3 |
Income (loss) from continuing operations before income tax | 180.5 | 149.1 | -315.9 |
Income tax (benefit) expense | -309.6 | 39.6 | 260.6 |
Income (loss) from continuing operations | 490.1 | 109.5 | -576.5 |
Earnings from discontinued operations, net of tax | 0.8 | 15.9 | 447 |
Net income (loss) | 490.9 | 125.4 | -129.5 |
Less: income attributable to noncontrolling interests | 2.4 | 0 | 0 |
Net income (loss) attributable to ITT Corporation | 488.5 | 125.4 | -129.5 |
Amounts attributable to ITT Corporation: | ' | ' | ' |
Income (loss) from continuing operations, net of tax | 487.7 | 109.5 | -576.5 |
Earnings from discontinued operations, net of tax | 0.8 | 15.9 | 447 |
Net income (loss) attributable to ITT Corporation | $488.50 | $125.40 | ($129.50) |
Basic Earnings Per Share: | ' | ' | ' |
Continuing operations (usd per share) | $5.36 | $1.18 | ($6.22) |
Discontinued operations (usd per share) | $0.01 | $0.17 | $4.82 |
Net income (loss) (usd per share) | $5.37 | $1.35 | ($1.40) |
Diluted Earnings Per Share: | ' | ' | ' |
Continuing operations (usd per share) | $5.28 | $1.16 | ($6.22) |
Discontinued operations (usd per share) | $0.01 | $0.17 | $4.82 |
Net income (loss) (usd per share) | $5.29 | $1.33 | ($1.40) |
Weighted average common shares - basic | 91 | 93 | 92.8 |
Weighted average common shares - diluted | 92.3 | 94.1 | 92.8 |
Cash dividends declared per common share | $0.40 | $0.36 | $1.59 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement of Partners' Capital [Abstract] | ' | ' | ' | |
Net income (loss) | $490.90 | $125.40 | ($129.50) | |
Other comprehensive income (loss): | ' | ' | ' | |
Net foreign currency translation adjustment | 10.9 | 4.7 | -38.8 | |
Net change in postretirement benefit plans, net of tax impacts of ($38.8), $0, and $399.0, respectively | 66.3 | -42.3 | -508.5 | |
Net change in unrealized loss on investment securities, net of tax impacts of $0, $1.0, and $7.8, respectively | 0 | 1 | -12.8 | |
Other comprehensive income (loss) | 77.2 | -36.6 | -560.1 | |
Comprehensive income (loss) | 568.1 | 88.8 | -689.6 | |
Less: Comprehensive income attributable to noncontrolling interests | 2.4 | 0 | 0 | |
Comprehensive income (loss) attributable to ITT Corporation | 565.7 | 88.8 | -689.6 | |
Disclosure of reclassification adjustments and other adjustments to postretirement benefit plans | ' | ' | ' | |
Amortization of prior service costs, net of tax benefit of $(0.1), $0, and $(1.0), respectively (See Note 17) | 0.3 | 0.8 | 1.6 | |
Amortization of net actuarial loss, net of tax benefit of $(4.8), $0, and $(42.1), respectively (See Note 17) | 8.5 | 10.9 | 68.7 | |
Prior service credit, net of tax expense of $(7.1), $0, and $(1.0), respectively | 11.9 | 3.1 | 2 | |
Net actuarial gain (loss), net of tax (expense) benefit of $(26.8), $0, and $443.1, respectively | 46.1 | -56.7 | -580.8 | |
Unrealized change from foreign currency translation | -0.5 | -0.4 | 0 | |
Net change in postretirement benefit plans, net of tax impacts of ($38.8), $0, and $399.0, respectively | 66.3 | -42.3 | -508.5 | |
Disclosure of reclassification adjustments and other adjustments to unrealized loss on investment securities | ' | ' | ' | |
Realized losses (gains) arising during the period, net of tax expense of $0, $1.0, and $6.1, respectively(a) | 0 | 1 | -10 | [1] |
Unrealized holding losses arising during period, net of tax benefit of $0, $0, and $1.7, respectively | 0 | 0 | -2.8 | |
Net change in unrealized loss on investment securities, net of tax impacts of $0, $1.0, and $7.8, respectively | $0 | $1 | ($12.80) | |
[1] | The reclassification adjustment related to the realized gains from investment securities during 2011 was presented within general and administrative expenses. |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Partners' Capital [Abstract] | ' | ' | ' |
Tax benefit of change in postretirement benefit plans | ($38.80) | ' | $399 |
Tax expense of net change in unrealized gains on investment securities | ' | 1 | 7.8 |
Tax benefit of amortization of prior service costs | -0.1 | ' | -1 |
Tax benefit of amortization of net actuarial loss | -4.8 | ' | -42.1 |
Tax (expense) benefit of prior service gain from plan amendment | -7.1 | ' | -1 |
Tax benefit (expense) of net actuarial gain (loss) arising during the period | -26.8 | ' | 443.1 |
Tax expense of gains realized during the period | ' | 1 | 6.1 |
Tax benefit (expense) of Unrealized holding (losses) gains arising during period | ' | ' | $1.70 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Current assets: | ' | ' | ||
Cash and cash equivalents | $507.30 | $544.50 | ||
Receivables, net | 496.7 | 440.3 | ||
Inventories, net | 315.9 | 304.2 | ||
Other current assets | 345.6 | 251.4 | ||
Total current assets | 1,665.50 | 1,540.40 | ||
Plant, property and equipment, net | 426.2 | 373.1 | ||
Goodwill | 659.8 | 651.4 | ||
Other intangible assets, net | 106.9 | 123.3 | ||
Asbestos-related assets | 433.3 | 525.3 | ||
Deferred income taxes | 303.6 | 21.4 | ||
Other non-current assets | 144.9 | 151.2 | ||
Total non-current assets | 2,074.70 | 1,845.70 | ||
Total assets | 3,740.20 | 3,386.10 | ||
Current liabilities: | ' | ' | ||
Accounts payable | 332.7 | 347 | ||
Accrued liabilities | 499.9 | 458.3 | ||
Total current liabilities | 832.6 | 805.3 | ||
Asbestos-related liabilities | 1,179.60 | 1,255 | ||
Postretirement benefits | 243.3 | 330.3 | ||
Other non-current liabilities | 277.8 | 292.3 | ||
Total non-current liabilities | 1,700.70 | 1,877.60 | ||
Total liabilities | 2,533.30 | 2,682.90 | ||
Shareholders' Equity: | ' | ' | ||
Common stock: Authorized - 250 shares, $1 par value per share (104.0 shares issued) Outstanding - 91.0 shares and 92.1, respectively | 91 | [1] | 91.9 | [1] |
Retained earnings | 1,320.30 | 898.8 | ||
Accumulated other comprehensive loss: | ' | ' | ||
Postretirement benefit plans | -129.2 | -195.5 | ||
Cumulative translation adjustments | -80.8 | -91.7 | ||
Unrealized loss on investment securities | -0.3 | -0.3 | ||
Total ITT Corporation shareholders' equity | 1,201 | 703.2 | ||
Noncontrolling interests | 5.9 | 0 | ||
Total shareholders’ equity | 1,206.90 | 703.2 | ||
Total liabilities and shareholders' equity | $3,740.20 | $3,386.10 | ||
[1] | Shares issued and outstanding include unvested restricted common stock of 0.2 at December 31, 2012. No unvested restricted common stock was outstanding as of December 31, 2013. |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Statement of Financial Position [Abstract] | ' | ' | ||
Common stock, shares authorized | 250,000,000 | 250,000,000 | ||
Common stock, par value | $1 | $1 | ||
Common stock, shares issued | 104,000,000 | [1] | 104,000,000 | [1] |
Common stock, shares outstanding | 91,000,000 | 92,100,000 | ||
Unvested restricted common stock included in shares issued and outstanding | 0 | 200,000 | ||
[1] | Shares issued and outstanding include unvested restricted common stock of 0.2 at December 31, 2012. No unvested restricted common stock was outstanding as of December 31, 2013. |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
Net income (loss) | $490.90 | $125.40 | ($129.50) |
Less: Income from discontinued operations | 0.8 | 15.9 | 447 |
Less: income attributable to noncontrolling interests | 2.4 | 0 | 0 |
Income (loss) from continuing operations, net of tax | 487.7 | 109.5 | -576.5 |
Adjustments to income (loss) from continuing operations | ' | ' | ' |
Depreciation and amortization | 86.9 | 71.1 | 71.3 |
Stock-based compensation | 13.1 | 12.4 | 11.5 |
Asbestos-related costs, net | 32.8 | 50.9 | 100.4 |
Transformation costs | 2.2 | 13 | 396.1 |
Deferred income taxes | -364 | 34.1 | 302.4 |
Asbestos-related payments, net | -25.4 | -20.1 | -22 |
Transformation-related payments | -7.1 | -47.3 | -355 |
Contributions to postretirement plans | -11.9 | -71 | -30.8 |
Changes in assets and liabilities (net of acquisitions): | ' | ' | ' |
Change in receivables | -60.7 | -17.7 | -71 |
Change in inventories | -10.7 | -8.7 | -37 |
Change in accounts payable | 4.5 | -4.3 | 3.3 |
Change in accrued expenses | 40.5 | -10.1 | 34.8 |
Change in accrued income taxes | 28.6 | 84.1 | -97.5 |
Other, net | 10.1 | 51.2 | -52.4 |
Net Cash - Operating activities | 226.6 | 247.1 | -322.4 |
Investing Activities | ' | ' | ' |
Capital expenditures | -122.9 | -83.8 | -102.3 |
Purchases of investments | -240.2 | -38.2 | 0 |
Maturities of investments | 168.2 | 0 | 0 |
Acquisitions, net of cash acquired | 0.7 | -193.2 | -15.6 |
Proceeds from sale of discontinued operations and other assets | 2.3 | 39.5 | 10.4 |
Other, net | 3.1 | 1 | 1 |
Net Cash - Investing activities | -188.8 | -274.7 | -106.5 |
Financing Activities | ' | ' | ' |
Short-term debt, net | 25.4 | -24.8 | 3.5 |
Long-term debt repaid | -6.4 | -1 | -1,318.70 |
Long-term debt issued | 0 | 1.3 | 0 |
Proceeds from issuance of common stock | 34.8 | 58 | 60 |
Repurchase of common stock | -87.9 | -116.8 | -6.6 |
Excess tax benefit from equity compensation activity | 8.7 | 6.4 | 7.2 |
Dividends paid | -36.4 | -34.2 | -193 |
Contributions from Exelis and Xylem, net | 0 | 0 | 1,671 |
Distributions of Exelis and Xylem, net | 0 | 0 | 699.9 |
Other, net | 3.5 | 3.1 | -1 |
Net Cash - Financing activities | -58.3 | -108 | 922.3 |
Exchange rate effects on cash and cash equivalents | -0.4 | -4 | -9.4 |
Discontinued operations: | ' | ' | ' |
Operating activities | -16.3 | -3.2 | 561.2 |
Investing activities | 0 | -0.1 | -467.3 |
Financing activities | 0 | -2.4 | -527.1 |
Exchange rate effects on cash and cash equivalents | 0 | 0 | 6.7 |
Net Cash - Discontinued operations | -16.3 | -5.7 | -426.5 |
Net change in cash and cash equivalents | -37.2 | -145.3 | 57.5 |
Cash and cash equivalents – beginning of year | 544.5 | 1,089.80 | 1,032.30 |
Cash and cash equivalents – end of year | 507.3 | 544.5 | 1,089.80 |
Less: Cash and cash equivalents distributed to Exelis and Xylem | 0 | 0 | -400 |
Cash and Cash Equivalents of Continuing Operations - End of Period | 507.3 | 544.5 | 689.8 |
Cash paid (received) during the year for: | ' | ' | ' |
Interest | 0.9 | 2.3 | 80.2 |
Income taxes, net of refunds received | $21.90 | ($100.90) | $140 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY (USD $) | Total | Common Stock [Member] | Retained Earnings [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] | |
In Millions, unless otherwise specified | Exelis and Xylem [Member] | ||||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2010 | ' | ' | ' | ' | $275.80 | ' | |
Unrealized (loss) gain on investment securities, beginning balance at Dec. 31, 2010 | ' | ' | ' | ' | 11.5 | ' | |
Noncontrolling interests, beginning balance at Dec. 31, 2010 | ' | ' | ' | ' | ' | 0 | |
Total shareholders' equity, beginning balance at Dec. 31, 2010 | 4,461.20 | ' | ' | ' | ' | ' | |
Postretirement benefit plans, beginning balance at Dec. 31, 2010 | ' | ' | ' | ' | -1,359.50 | ' | |
Common stock, beginning balance at Dec. 31, 2010 | ' | 91.5 | ' | ' | ' | ' | |
Retained earnings, beginning balance at Dec. 31, 2010 | ' | ' | 5,441.90 | ' | ' | ' | |
Common stock, beginning balance, shares at Dec. 31, 2010 | ' | 91.5 | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Activity from stock incentive plans, shares | ' | 1.7 | ' | ' | ' | ' | |
Share repurchases, shares | ' | -0.1 | ' | ' | ' | ' | |
Activity from stock incentive plans | ' | 1.7 | 103.4 | ' | ' | ' | |
Share repurchases | ' | -0.1 | -6.5 | ' | ' | ' | |
Net income (loss) | -129.5 | ' | -129.5 | ' | ' | ' | |
Cash dividends declared on common stock | ' | ' | -147.2 | ' | ' | ' | |
Activity from stock incentive plans | ' | 1.7 | 103.4 | ' | ' | ' | |
Share repurchases | ' | -0.1 | -6.5 | ' | ' | ' | |
Distribution of Exelis and Xylem - Retained Earnings | ' | ' | ' | -4,409.50 | ' | ' | |
Purchase of noncontrolling interest | ' | ' | ' | ' | ' | ' | |
Net change in postretirement benefit plans | -508.5 | ' | ' | ' | -508.5 | ' | |
Distribution of Exelis and Xylem - AOCI Postretirement Plans | ' | ' | ' | ' | 1,714.80 | ' | |
Net cumulative translation adjustment | ' | ' | ' | ' | -38.8 | ' | |
Distribution of Exelis and Xylem - AOCI Foreign Currency Translation Adjustment | ' | ' | ' | ' | -333.4 | ' | |
Net change in unrealized gain (loss) on investment securities | -12.8 | ' | ' | ' | -12.8 | ' | |
Total accumulated other comprehensive loss | ' | ' | ' | ' | -250.9 | ' | |
Reclassification Of Noncontrolling Interests | ' | ' | ' | ' | ' | 0 | |
Income attributable to noncontrolling interests | 0 | ' | ' | ' | ' | 0 | |
Other | ' | ' | ' | ' | ' | 0 | |
Net change in common stock | 1.6 | ' | ' | ' | ' | ' | |
Net change in retained earnings | -4,589.30 | ' | ' | ' | ' | ' | |
Net change in accumulated other comprehensive loss | 821.3 | ' | ' | ' | ' | ' | |
Net change in noncontrolling interests | 0 | ' | ' | ' | ' | ' | |
Cumulative translation adjustments, ending balance at Dec. 31, 2011 | ' | ' | ' | ' | -96.4 | ' | |
Unrealized (loss) gain on investment securities, ending balance at Dec. 31, 2011 | ' | ' | ' | ' | -1.3 | ' | |
Noncontrolling interests, beginning balance at Dec. 31, 2011 | ' | ' | ' | ' | ' | 0 | |
Total shareholders' equity, ending balance at Dec. 31, 2011 | 694.8 | ' | ' | ' | ' | ' | |
Postretirement benefit plans, ending balance at Dec. 31, 2011 | ' | ' | ' | ' | -153.2 | ' | |
Common stock, ending balance at Dec. 31, 2011 | ' | 93.1 | ' | ' | ' | ' | |
Retained earnings, ending balance at Dec. 31, 2011 | ' | ' | 852.6 | ' | ' | ' | |
Common stock, ending balance, shares at Dec. 31, 2011 | ' | 93.1 | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Activity from stock incentive plans, shares | ' | 4 | ' | ' | ' | ' | |
Share repurchases, shares | -5.1 | -5.2 | ' | ' | ' | ' | |
Activity from stock incentive plans | ' | 4 | 74.1 | ' | ' | ' | |
Share repurchases | -113.4 | -5.2 | -111.6 | ' | ' | ' | |
Net income (loss) | 125.4 | ' | 125.4 | ' | ' | ' | |
Cash dividends declared on common stock | ' | ' | -34.2 | ' | ' | ' | |
Activity from stock incentive plans | ' | 4 | 74.1 | ' | ' | ' | |
Share repurchases | -113.4 | -5.2 | -111.6 | ' | ' | ' | |
Distribution of Exelis and Xylem - Retained Earnings | ' | ' | ' | -7.3 | ' | ' | |
Purchase of noncontrolling interest | ' | ' | -0.2 | ' | ' | ' | |
Net change in postretirement benefit plans | -42.3 | ' | ' | ' | -42.3 | ' | |
Distribution of Exelis and Xylem - AOCI Postretirement Plans | ' | ' | ' | ' | ' | ' | |
Net cumulative translation adjustment | ' | ' | ' | ' | 4.7 | ' | |
Distribution of Exelis and Xylem - AOCI Foreign Currency Translation Adjustment | ' | ' | ' | ' | ' | ' | |
Net change in unrealized gain (loss) on investment securities | 1 | ' | ' | ' | 1 | ' | |
Total accumulated other comprehensive loss | ' | ' | ' | ' | -287.5 | ' | |
Reclassification Of Noncontrolling Interests | ' | ' | ' | ' | ' | 0 | |
Income attributable to noncontrolling interests | 0 | ' | ' | ' | ' | 0 | |
Other | ' | ' | ' | ' | ' | 0 | |
Net change in common stock | -1.2 | ' | ' | ' | ' | ' | |
Net change in retained earnings | 46.2 | ' | ' | ' | ' | ' | |
Net change in accumulated other comprehensive loss | -36.6 | ' | ' | ' | ' | ' | |
Net change in noncontrolling interests | 0 | ' | ' | ' | ' | ' | |
Cumulative translation adjustments, ending balance at Dec. 31, 2012 | -91.7 | ' | ' | ' | -91.7 | ' | |
Unrealized (loss) gain on investment securities, ending balance at Dec. 31, 2012 | -0.3 | ' | ' | ' | -0.3 | ' | |
Noncontrolling interests, beginning balance at Dec. 31, 2012 | 0 | ' | ' | ' | ' | 0 | |
Total shareholders' equity, ending balance at Dec. 31, 2012 | 703.2 | ' | ' | ' | ' | ' | |
Postretirement benefit plans, ending balance at Dec. 31, 2012 | -195.5 | ' | ' | ' | -195.5 | ' | |
Common stock, ending balance at Dec. 31, 2012 | 91.9 | [1] | 91.9 | ' | ' | ' | ' |
Retained earnings, ending balance at Dec. 31, 2012 | 898.8 | ' | 898.8 | ' | ' | ' | |
Common stock, ending balance, shares at Dec. 31, 2012 | 104 | [1] | 91.9 | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | |
Activity from stock incentive plans, shares | ' | 2.3 | ' | ' | ' | ' | |
Share repurchases, shares | -3.1 | -3.2 | ' | ' | ' | ' | |
Activity from stock incentive plans | ' | 2.3 | 54.4 | ' | ' | ' | |
Share repurchases | -85.2 | -3.2 | -84.7 | ' | ' | ' | |
Net income (loss) | 488.5 | ' | 488.5 | ' | ' | ' | |
Cash dividends declared on common stock | ' | ' | -36.7 | ' | ' | ' | |
Activity from stock incentive plans | ' | 2.3 | 54.4 | ' | ' | ' | |
Share repurchases | -85.2 | -3.2 | -84.7 | ' | ' | ' | |
Distribution of Exelis and Xylem - Retained Earnings | ' | ' | ' | 0 | ' | ' | |
Purchase of noncontrolling interest | ' | ' | 0 | ' | ' | ' | |
Net change in postretirement benefit plans | 66.3 | ' | ' | ' | 66.3 | ' | |
Distribution of Exelis and Xylem - AOCI Postretirement Plans | ' | ' | ' | ' | ' | ' | |
Net cumulative translation adjustment | ' | ' | ' | ' | 10.9 | ' | |
Distribution of Exelis and Xylem - AOCI Foreign Currency Translation Adjustment | ' | ' | ' | ' | ' | ' | |
Net change in unrealized gain (loss) on investment securities | 0 | ' | ' | ' | 0 | ' | |
Total accumulated other comprehensive loss | ' | ' | ' | ' | -210.3 | ' | |
Reclassification Of Noncontrolling Interests | ' | ' | ' | ' | ' | 3.9 | |
Income attributable to noncontrolling interests | 2.4 | ' | ' | ' | ' | 2.4 | |
Other | ' | ' | ' | ' | ' | -0.4 | |
Net change in common stock | -0.9 | ' | ' | ' | ' | ' | |
Net change in retained earnings | 421.5 | ' | ' | ' | ' | ' | |
Net change in accumulated other comprehensive loss | 77.2 | ' | ' | ' | ' | ' | |
Net change in noncontrolling interests | 5.9 | ' | ' | ' | ' | ' | |
Cumulative translation adjustments, ending balance at Dec. 31, 2013 | -80.8 | ' | ' | ' | -80.8 | ' | |
Unrealized (loss) gain on investment securities, ending balance at Dec. 31, 2013 | -0.3 | ' | ' | ' | -0.3 | ' | |
Noncontrolling interests, beginning balance at Dec. 31, 2013 | 5.9 | ' | ' | ' | ' | 5.9 | |
Total shareholders' equity, ending balance at Dec. 31, 2013 | 1,206.90 | ' | ' | ' | ' | ' | |
Postretirement benefit plans, ending balance at Dec. 31, 2013 | -129.2 | ' | ' | ' | -129.2 | ' | |
Common stock, ending balance at Dec. 31, 2013 | 91 | [1] | 91 | ' | ' | ' | ' |
Retained earnings, ending balance at Dec. 31, 2013 | $1,320.30 | ' | $1,320.30 | ' | ' | ' | |
Common stock, ending balance, shares at Dec. 31, 2013 | 104 | [1] | 91 | ' | ' | ' | ' |
[1] | Shares issued and outstanding include unvested restricted common stock of 0.2 at December 31, 2012. No unvested restricted common stock was outstanding as of December 31, 2013. |
Description_of_Business_Basis_
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | ' |
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Description of Business | |
ITT Corporation is a diversified manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Corporation and its subsidiaries. ITT operates through four segments: Industrial Process consisting of industrial pumping and complementary equipment; Motion Technologies consisting of friction and shock & vibration equipment; Interconnect Solutions (ICS) consisting of electronic connectors; and Control Technologies consisting of fluid handling, motion control and vibration and shock isolation products. Financial information for our segments is presented in Note 22, “Segment Information.” | |
Basis of Presentation | |
The Consolidated Financial Statements and Notes thereto were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities and recoveries from insurers, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. | |
Certain prior year amounts have been reclassified to conform to the current year presentation, as described within these Notes to the Consolidated Financial Statements. | |
Significant Accounting Policies | |
Principles of Consolidation | |
Our consolidated financial statements include the accounts of all majority-owned subsidiaries. ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Statements of Operations. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal or distribution. All intercompany transactions have been eliminated. | |
Revenue Recognition | |
Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions. | |
Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. | |
We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period. | |
For multiple deliverable arrangements, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. | |
The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied. | |
We recognize revenue on certain design and build projects using the completed contract method. Amounts invoiced to customers in excess of revenue recognized are recorded as a reduction of inventory to the extent project costs have accumulated within inventory or as deferred revenue, within accrued liabilities, until the revenue recognition criteria are satisfied. | |
During the performance of design and build arrangements, estimated final contract prices and costs are reviewed quarterly. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses are recorded as a component of costs of revenue. | |
We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. | |
Revenue is reported net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Shipping and Handling Costs | |
Shipping and handling costs are recorded as a component of costs of revenue. | |
Product Warranties | |
Our standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim. | |
Asbestos-Related Liabilities and Assets | |
ITT has been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. | |
The Company has also recorded an asbestos-related asset, composed of insurance receivables. The asbestos-related asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers, as well as a review of expected levels of future cost recovery, the financial viability of the insurance companies, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, and interpretation of the various policy and contract terms and limits and their interrelationships. | |
In the third quarter each year we conduct an asbestos remeasurement with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions used to estimate our asbestos liability and related assets, including a reassessment of the time horizon over which a reasonable estimate of unasserted claims can be projected. In addition, as part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. Provided the quarterly review does not indicate a more detailed evaluation of our asbestos exposure is required, each quarter we record a net asbestos expense to maintain a rolling 10-year time horizon. | |
Postretirement Benefit Plans | |
ITT sponsors pension and other employee-related defined benefit plans (collectively, postretirement benefit plans) for employees around the world. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, and age at retirement or termination. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental. The assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, and other factors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Actual results that differ from our assumptions are accumulated and are amortized over the estimated future working life, or remaining lifetime, of the plan participants depending on the nature of the retirement plan. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last 5 years. | |
The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. | |
The funded status of each plan is recorded on our balance sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through net income are recorded in accumulated other comprehensive income within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost. | |
Research & Development | |
Research and development (R&D) activities are charged to expense as incurred and are reported as a component of operating income within the R&D expense line. | |
Stock-Based Compensation | |
Stock-based awards issued to employees and non-employee directors include non-qualified stock options, restricted stock awards, restricted stock units, performance units, and certain liability-based awards. Performance units include a total shareholder return (TSR) component and a return on invested capital (ROIC) component which are accounted for as two distinct awards. Compensation costs resulting from share-based payment transactions are recognized primarily within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis. The amount of compensation recognized includes an adjustment based on an estimate of awards ultimately expected to vest. The fair value of a non-qualified stock option is determined on the date of grant using a binomial lattice pricing model incorporating multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The fair value of restricted stock awards and restricted stock units is determined using the closing price of the Company’s common stock on date of grant. The fair value of TSR equity awards is measured at grant date using a Monte Carlo simulation, measuring potential total shareholder return for ITT relative to the other companies in the S&P 400 Capital Goods Index. The fair value of the ROIC awards was based on the closing price of ITT common stock on the date of grant less the present value of expected dividend payments during the vesting period. The fair value of our liability-based awards, including cash awards under our TSR award plan, granted prior to 2013, is measured using a Monte Carlo simulation and is remeasured at the end of each reporting period. | |
Restructuring | |
We periodically initiate management approved restructuring activities to achieve cost savings through reduced operational redundancies and to strategically position ourselves in the market in response to prevailing economic conditions and associated customer demand. Costs associated with restructuring actions can include severance, infrastructure charges to vacate facilities or consolidate operations, contract termination costs and other related charges. For involuntary separation plans, a liability is recognized when it is probable and reasonably estimable. For voluntary separation plans, a liability is recognized when the employee irrevocably accepts the voluntary termination. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as lease termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change. Restructuring costs are presented within general and administrative expenses. | |
Income Taxes | |
We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. | |
We record a valuation allowance against our deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence regarding the realizability of its deferred tax assets, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, estimated future taxable income, and whether we have a recent history of losses. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates. | |
We have not provided deferred tax liabilities for the impact of U.S. income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the U.S. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations. | |
Furthermore, we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position in consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of the proceedings (or negotiations) with the taxing authorities. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate settlement. | |
Earnings Per Share | |
Basic earnings per common share considers the weighted average number of common shares outstanding, as well as outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock units and unvested performance stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect. | |
Cash and Cash Equivalents | |
ITT considers all highly liquid investments purchased with an original maturity or remaining maturity at time of purchase of three months or less to be cash equivalents. Cash equivalents primarily include fixed-maturity time deposits and money market investments. We record the fixed maturity time deposits at amortized cost and accrue interest during the maturity period. | |
Concentrations of Credit Risk | |
Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, investments and derivatives. We maintain cash and cash equivalents with various financial institutions located in different geographical regions, and our policy is designed to limit exposure to any individual counterparty. As part of our risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from financial instruments held at financial institutions. | |
Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. However, our largest customer represents approximately 10% of the December 31, 2013 outstanding trade accounts receivable balance. ITT performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances. | |
Allowance for Doubtful Accounts | |
We determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors; including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of our customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. | |
Inventories | |
Inventories, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value and are charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 15.3% and 16.3% of total 2013 and 2012 inventories, respectively. We have a LIFO reserve of $9.2 and $8.1 recorded as of December 31, 2013 and 2012, respectively. | |
Cost of sales is generally reported using standard cost techniques with full overhead absorption that approximates actual cost. | |
Plant, Property and Equipment | |
Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: buildings and improvements – five to 40 years, machinery and equipment – two to 10 years, furniture and office equipment – three to seven years, and other – five to 40 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Repairs and maintenance costs are expensed as incurred. | |
The Company enters into operating and capital leases for the use of premises and equipment. Rent expense related to operating lease agreements are recorded on a straight line basis, considering lease incentives and escalating rental payments. | |
Capitalized Internal Use Software | |
Costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from three to seven years. | |
Investments | |
As of December 31, 2013 and 2012, we held investments in time deposits with a cost of $112.9 and $38.2, respectively, having an original maturity exceeding three months at the time of purchase. These investments mature within four months of the balance sheet date and have been presented in other current assets as short-term investments on the Consolidated Balance Sheet. These investments have been classified as held-to-maturity and are recorded at amortized cost, which approximates fair value at December 31, 2013 and 2012. We did not realize any gains or losses from the maturity of our investments during 2013 or 2012. Interest income recognized from these investments during 2013 or 2012 was not material to our results of operations. | |
Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of the balance sheet date. The Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $93.6 and $87.7 at December 31, 2013 and 2012, respectively. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses and were not material in the years ended December 31, 2013, 2012 and 2011. These investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2013 and 2012 were approximately $17.5 and $17.0, respectively, however, the COLI policies do not represent a committed funding source for these obligations and as such they are subject to claims from creditors, and we can designate them for another purpose at any time. | |
Long-Lived Asset Impairment | |
Long-lived assets, including intangible assets with finite lives and capitalized internal use software, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. | |
Goodwill and Intangible Assets | |
Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of the acquired business. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are generally amortized on a straight-line basis over an estimated economic useful life, which generally range from 10-20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. | |
Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth fiscal quarter. When reviewing for impairment, we may opt to make an initial qualitative evaluation which considers present events and circumstances, to determine the likelihood of impairment. If the likelihood of impairment is not considered to be more likely than not, then no further testing is performed. For goodwill, if it is considered to be more likely than not that the asset is impaired, then a two-step quantitative impairment test is performed. In the first step, the estimated fair value of each reporting unit is compared to the carrying value of the net assets assigned to that reporting unit. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and the second step of the impairment test is not performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded, if any. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. For indefinite-lived intangibles, if it is considered to be more likely than not that the asset is impaired, we compare the fair value of those assets to their carrying value. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. | |
We estimate the fair value of our reporting units using an income approach. Under the income approach, we estimate fair value based on the present value of estimated future cash flows. We estimate the fair value of our indefinite-lived intangible assets using the relief from royalty method. The relief from royalty method estimates the portion of a company’s earnings attributable to an intellectual property asset based on an assumed royalty rate that the company would have paid had the asset not been owned. | |
Business Combinations | |
ITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill. Changes to acquisition date fair values after expiration of the measurement period are recorded in earnings. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred and the costs associated with restructuring actions initiated after the acquisition are recognized separately from the business combination. | |
Commitments and Contingencies | |
We record accruals for commitments and loss contingencies for those which are both probable and the amount can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other current information. | |
Environmental-Related Liabilities and Assets | |
Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties. | |
During 2012, the Company established an insurance asset related to its environmental exposures. The environmental-related asset represents our best estimate of probable recoveries from third parties for costs incurred in past periods, as well as costs estimated to be incurred in future periods. In developing this estimate, the Company reviews the expected levels of future cost recovery, the financial viability of the insurance companies, the sites and claims covered by those policies, and our interpretation of the various policy and contract terms and limits. | |
Environmental costs and related recoveries are recorded within general and administrative expenses in the Consolidated Statements of Operations. | |
Foreign Currency Translation | |
The national currencies of our foreign subsidiaries are generally the functional currencies. Balance sheet accounts are translated at the exchange rate in effect at the end of each period, except for equity which is translated at historical rates; income statement accounts are translated at the average rates of exchange prevailing during the period. Gains and losses resulting from foreign currency translation are reflected in the cumulative translation adjustments component of shareholders’ equity. | |
For foreign subsidiaries that do not use the local currency as their functional currency, foreign currency assets and liabilities are remeasured to the foreign subsidiary’s functional currency using end of period exchange rates, except for nonmonetary balance sheet accounts, which are remeasured at historical exchange rates. | |
For transactions denominated in other than the functional currency, revenue and expenses are remeasured at average exchange rates in effect during the reporting period in which the transactions occurred, except for expenses related to nonmonetary assets and liabilities. Transaction gains or losses from foreign currency remeasurement are reported in general and administrative expenses. | |
Fair Value Measurements | |
We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the inputs to valuation techniques used to measure fair value into three broad levels based on the observability of the lowest level input that is significant to the fair value measure. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), then to quoted market prices for similar assets or liabilities in active markets or quoted market prices of identical assets in less active markets (Level 2) and gives the lowest priority to unobservable inputs (Level 3). | |
Derivative Financial Instruments | |
ITT may use derivative financial instruments, primarily foreign currency forward contracts, to mitigate exposure from foreign currency exchange rate fluctuations as it pertains to receipts from customers, payments to suppliers and intercompany transactions. In connection with the Bornemann acquisition, we assumed certain foreign currency contracts related to forecasted transactions with third-parties. We record derivatives at their fair value as either an asset or liability and include adjustments to reflect changes in the fair value of our derivatives in earnings as the contracts are not designated as hedges. The differentials paid or received on interest rate swap agreements are recognized as adjustments to interest expense. As of December 31, 2013 and 2012, the notional amount of our foreign currency derivatives was $13.1 and $48.0, respectively, and our interest rate swaps was $11.9 and $7.9, respectively. The amount of gains and losses recorded related to our foreign currency contracts and interest rate swaps, and the net fair value of our outstanding derivative contracts was not material as of and for the years ended December 31, 2013, 2012 and 2011. | |
Derivative contracts involve the risk of non-performance by the counterparty. The fair value of our foreign currency contracts has been determined using the net position of the contracts and the applicable spot rates and forward rates as of the reporting date. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Accounting Pronouncements Not Yet Adopted | |
In July 2013, the Financial Accounting Standards Board (FASB) issued guidance eliminating diversity in practice surrounding the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance requires entities to net an unrecognized tax benefit with a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if the carryforward would be used to settle additional tax due upon disallowance of a tax position. The adoption of this amendment on January 1, 2014 is not expected to have a material effect on ITT's financial statements. | |
In March 2013, the FASB clarified that, when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. The cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The FASB also clarified that if a business combination is achieved in stages related to a previously held equity method investment (step-acquisition) that is a foreign entity, the amount of accumulated other comprehensive income that is reclassified and included in the calculation of gain or loss as of the acquisition date shall include any foreign currency translation adjustment related to that previously held investment. The adoption of these amendments on January 1, 2014 is not expected to have a material impact to ITT's financial statements. | |
In February 2013, the FASB issued guidance requiring an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the amount the entity agreed to pay for the arrangement between them and the other entities that are also obligated to the liability and any additional amount the entity expects to pay on behalf of the other entities. The adoption of these amendments on January 1, 2014 is not expected to have a material impact to ITT's financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Acquisitions | ' | |||
ACQUISITIONS | ||||
On November 28, 2012, we acquired all issued and outstanding stock of the privately held Joh. Heinr. Bornemann GmbH (Bornemann) for a final purchase price of $192.5, net of cash acquired. Bornemann, a supplier and servicer of multiphase pumping systems serving the global oil & gas, industrial, food and pharmaceutical markets, has more than 550 employees globally and is reported within the Industrial Process segment. The acquisition was funded with cash on hand. The final allocation of the purchase price, presented below, is based on the fair value of assets acquired, liabilities assumed and noncontrolling interests in Bornemann as of November 28, 2012. | ||||
Cash | $ | 11.9 | ||
Receivables | 29.9 | |||
Inventory | 44.7 | |||
Deferred tax assets | 14.6 | |||
Plant, property and equipment | 29.8 | |||
Goodwill | 147.3 | |||
Other intangibles | 58.7 | |||
Other assets | 9.2 | |||
Accounts payable | (9.6 | ) | ||
Accrued liabilities | (30.1 | ) | ||
Deferred revenue | (10.2 | ) | ||
Deferred tax liabilities | (23.1 | ) | ||
Short and long-term debt and capital leases | (44.4 | ) | ||
Postretirement obligations | (15.0 | ) | ||
Other liabilities | (9.3 | ) | ||
Net assets acquired | $ | 204.4 | ||
The goodwill arising from the acquisition is primarily related to the planned geographic expansion of Bornemann operations and is not expected to be deductible for income tax purposes. All of the goodwill has been assigned to the Industrial Process segment. Other intangibles acquired include customer relationships, proprietary technology and trademarks. | ||||
During 2011, we spent $15.6, net of cash acquired, on acquisitions that were not material individually or in the aggregate to our results of operations or financial position. The most significant of these acquisitions was Blakers Pump Engineers Unit Trust (Blakers) on October 27, 2011. Blakers, reported within the Industrial Process segment, is a supplier of process and industrial pumping equipment serving customers in the oil & gas, mining, power, and general markets. | ||||
Our financial statements include the results of operations and cash flows from each of our acquisitions prospectively from their respective acquisition date. Pro forma results of operations have not been presented because neither acquisition was deemed material at the acquisition date. |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||||||
Discontinued Operations | ' | |||||||||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||||||||||
Results from discontinued operations reflect income of $0.8 for the year ended December 31, 2013 primarily related to a reversal of warranty reserves and legal-related contingencies associated with previously disposed businesses, partially offset by a settlement of legacy receivables and payables with a former ITT entity, resulting in a net loss of $1.3. | ||||||||||||||||||||
During 2012, the Company completed the sale of its shape cutting product lines, including the Kaliburn and Burny brands as well as the web tension control products and custom engineered systems sold under the Cleveland Motion Controls brand (collectively referred to herein as the Shape Cutting Businesses). The sale was completed on November 13, 2012, resulting in net proceeds from the sale of $38.4 which is included in investing activities on our Consolidated Statement of Cash Flows. Subsequent to this divestiture, we do not have any significant continuing involvement in the operations of these businesses, nor do we expect significant continuing cash flows. Accordingly, the financial position and results of operations of the Shape Cutting Businesses are reported as a discontinued operation for 2012 and 2011. | ||||||||||||||||||||
Summarized operating results from the Shape Cutting Businesses presented within earnings from discontinued operations are provided in the tables below. Interest expense was not allocated to the divested businesses for any of the periods presented. Amounts presented in the “Other” column within the tables below relate to various divested ITT businesses accounted for as discontinued operations in the year of divestiture for which legacy liabilities remain, as well as certain transformation costs which were directly related to the Distribution and provided no future benefit to the Company. See Note 6, “Company Transformation” for further information. | ||||||||||||||||||||
Year Ended 2012 | Shape | Other | Total | |||||||||||||||||
Cutting | ||||||||||||||||||||
Businesses | ||||||||||||||||||||
Revenue | $ | 30.2 | $ | — | $ | 30.2 | ||||||||||||||
Earnings from discontinued operations before income taxes | 0.6 | 0.4 | 1 | |||||||||||||||||
Gain on sale before tax | 9 | — | 9 | |||||||||||||||||
Income tax expense (benefit) | — | (5.9 | ) | (5.9 | ) | |||||||||||||||
Earnings from discontinued operations, net of tax | $ | 9.6 | $ | 6.3 | $ | 15.9 | ||||||||||||||
On October 31, 2011, the Company completed the Distribution of Exelis (previously referred to as ITT’s Defense & Information Solutions segment) and Xylem (previously referred to as the water-related businesses), from the Company into two independent, publicly traded companies via a tax-free Distribution to shareholders (the Distribution). ITT was designated as the accounting and legal spinnor with respect to the Distribution. The Distribution was made pursuant to a Distribution Agreement, dated October 25, 2011, among ITT, Exelis and Xylem (the Distribution Agreement). With the completion of these separations, the Company disposed of its water-related businesses and Defense segment in their entirety and ceased to consolidate their financial position and results of operations in its consolidated financial statements. Accordingly, the Company has presented the results of operations of its former water-related businesses and Defense segment as discontinued operations in the consolidated financial statements for 2011. | ||||||||||||||||||||
In connection with the Distribution, ITT received a net cash transfer (the Contribution) of $683.0 and $988.0 from Exelis and Xylem, respectively, which is included in financing activities on our Consolidated Statement of Cash Flows. No gain or loss was recognized in connection with the Distribution. While we are a party to a Distribution Agreement and several other agreements, including a Tax Matters Agreement, Benefits and Compensation Matters Agreement and Master Transition Services Agreement, we have determined we do not have significant continuing involvement in the operations of Exelis or Xylem, nor do we expect significant continuing cash flows from Exelis or Xylem. Summarized operating results from Exelis, Xylem, and the Shape Cutting Businesses presented within earnings from discontinued operations are provided in the tables below. | ||||||||||||||||||||
Year Ended 2011 | Exelis | Xylem | Shape | Other | Total | |||||||||||||||
Cutting | ||||||||||||||||||||
Businesses | ||||||||||||||||||||
Revenue | $ | 4,916.10 | $ | 3,107.50 | $ | 33.5 | $ | — | $ | 8,057.10 | ||||||||||
Transformation costs | 31.2 | 74.8 | — | 134.1 | 240.1 | |||||||||||||||
Earnings (loss) from discontinued operations before income taxes | 473 | 321.5 | (2.5 | ) | (108.9 | ) | 683.1 | |||||||||||||
Income tax expense (benefit) | 193.6 | 70.3 | (1.1 | ) | (26.7 | ) | 236.1 | |||||||||||||
Earnings (loss) from discontinued operations, net of tax | $ | 279.4 | $ | 251.2 | $ | (1.4 | ) | $ | (82.2 | ) | $ | 447 | ||||||||
In order to effect the Distribution and govern ITT’s relationship with Exelis and Xylem after the Distribution, ITT entered into a Distribution Agreement and several other agreements, including a Tax Matters Agreement, Employee Benefits and Compensation Matters Agreement and Master Transition Services Agreement. Information on the agreements utilized to effectuate the Distribution is provided below. | ||||||||||||||||||||
Distribution Agreement | ||||||||||||||||||||
The Distribution Agreement between ITT and Exelis and Xylem contains the key provisions relating to the separation of the businesses of Exelis and Xylem from ITT and the distribution of the shares of Exelis and Xylem common stock to our shareholders. The Distribution Agreement provides the framework for the allocation, transfer and assumption of assets and liabilities among ITT, Exelis and Xylem as well as the settlement or extinguishment of certain liabilities and other obligations between and among ITT, Exelis and Xylem. Under the Distribution Agreement, we agreed to indemnify Exelis and Xylem and their respective subsidiaries and affiliates, subject to limited exceptions with respect to certain employee claims, against claims and liabilities related to the past operation of ITT’s business (other than the liabilities of the divested businesses) and Exelis and Xylem agreed to indemnify us against claims and liabilities related to their respective businesses. The Distribution Agreement establishes that certain liabilities will be shared 21% to ITT, 39% to Exelis, and 40% to Xylem. | ||||||||||||||||||||
In connection with the Distribution, ITT retained certain material contingent legacy liabilities involving asbestos and environmental matters. See Note 20, “Commitments and Contingencies,” for information regarding asbestos and environmental related contingencies. | ||||||||||||||||||||
Tax Matters Agreement | ||||||||||||||||||||
On October 25, 2011, we entered into a Tax Matters Agreement with Exelis and Xylem that governs the respective rights, responsibilities and obligations of the companies after the Distribution with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. Federal, state, local and foreign income taxes, other tax matters and related tax returns. Exelis and Xylem have liability with ITT to the U.S. Internal Revenue Service (IRS) for the consolidated U.S. Federal income taxes of the ITT consolidated group relating to the taxable periods in which Exelis and Xylem were part of that group. However, the Tax Matters Agreement specifies the portion, if any, of this tax liability for which ITT, Exelis and Xylem will bear responsibility, and ITT, Exelis and Xylem agreed to indemnify each other against any amounts for which they are not responsible. The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the Distribution is determined to not be tax-free. The Tax Matters Agreement provides for certain covenants that may restrict our ability to pursue strategic or other transactions that otherwise could maximize the value of our business and may discourage or delay a change of control that may be considered favorable. Though valid as between the parties, the Tax Matters Agreement is not binding on the IRS. | ||||||||||||||||||||
Pursuant to the Tax Matters Agreement, as the shared income tax liabilities are settled, ITT will make payments up to certain specified thresholds, with payments in excess of those specified thresholds shared among ITT, Exelis, and Xylem. If payments to the taxing authorities are less than certain specified thresholds, ITT will make payments up to the remaining specified thresholds to Exelis and Xylem. Settlement is expected to occur as the audit process by applicable taxing authorities is completed for the impacted years and cash payments are made. Given the nature of the shared tax liabilities, the maximum amount of potential future payments is not determinable. Any such cash payments, when they occur, will reduce the liability for uncertain tax positions as such payments represent an equivalent reduction of risk. At December 31, 2013, ITT’s accrual for uncertain tax positions includes amounts related to certain shared tax liabilities; however, no receivables from Exelis or Xylem have been recorded as our estimate of their portion of the shared tax liabilities is not more than the amounts currently accrued for the uncertain tax position. If our estimate of exposures to the shared tax liabilities increases above the specified threshold, a receivable would be recorded. At December 31, 2013 and 2012, the financial statements include a net tax-related liability of $0.7 and $0.8, respectively, due to Exelis and Xylem in the aggregate. | ||||||||||||||||||||
Adjustments in the future for the impact of filing final income tax returns in certain jurisdictions where those returns include a combination of ITT, Exelis and Xylem legal entities and for certain amended income tax returns for the periods prior to the Distribution may be recorded to either shareholders’ equity or the statement of income depending on the specific item giving rise to the adjustment. During 2012, $7.0 was recorded directly to shareholders’ equity as part of the Distribution of Exelis and Xylem. | ||||||||||||||||||||
Benefits and Compensation Matters Agreement | ||||||||||||||||||||
On October 25, 2011, we entered into a Benefits and Compensation Matters Agreement with Exelis and Xylem that governs the respective rights, responsibilities and obligations of Exelis, Xylem and ITT after the Distribution with respect to transferred employees, defined benefit pension plans, defined contribution pension plans, nonqualified pension plans, employee health and welfare benefit plans, incentive plans, corporate-owned life insurance, stock equity awards, foreign benefit plans, director plans and collective bargaining agreements. The Benefits and Compensation Matters Agreement provides for the allocation and treatment of assets and liabilities arising out of incentive plans, pension plans and employee welfare benefit programs in which Exelis and Xylem employees participated prior to the Distribution. Generally, Exelis and Xylem assumed or retained sponsorship of, and liabilities relating to, employee compensation and benefit programs relating to Exelis and Xylem current employees. | ||||||||||||||||||||
The Benefits and Compensation Matters Agreement also provided that outstanding ITT equity awards would be equitably adjusted in connection with the Distribution. All outstanding ITT equity awards held by employees of Exelis as of the Distribution Date were substituted for Exelis equity awards and all outstanding ITT equity awards held by employees of Xylem as of the Distribution Date were substituted for Xylem equity awards. As described in Note 18, “Long-Term Incentive Employee Compensation,” the substitution preserved the economic value of the cancelled ITT equity awards for employees of Exelis and Xylem as of the Distribution Date. Subject to the applicable transition period with respect to certain benefit plans or programs, after the Distribution, employees of Exelis and Xylem no longer participate in ITT’s plans or programs, and Exelis and Xylem have established or maintained plans or programs for their employees. | ||||||||||||||||||||
Master Transition Services Agreement | ||||||||||||||||||||
On October 25, 2011, we entered into a Master Transition Services Agreement with Exelis and Xylem, under which each of Exelis and Xylem or their respective affiliates provide us with certain services (including information technology, financial, procurement and human resource services, benefits support services and other specified services), and we or certain of our affiliates provide each of Exelis and Xylem certain services (including information technology, human resources services and other specified services). These services will initially be provided at cost with scheduled, escalating increases to up to cost plus 10% and generally extended for a period of 3 to 24 months from the Distribution Date and are intended to help ensure an orderly transition for each of Exelis, Xylem and ITT following the Distribution. | ||||||||||||||||||||
During 2013 and 2012, we billed Exelis and Xylem a total of $6.7 and $10.7, respectively, associated with activities performed under the Master Transition Services Agreement. During 2011, we billed Exelis and Xylem a total of approximately $22.0, primarily relating to active employee health benefits which continued to be administered by ITT. On January 1, 2012, the administration of the employee health benefit plans was transferred to Exelis and Xylem. Total billings by Exelis and Xylem to ITT during 2013 and 2012 amounted to $0.8 and $1.3, respectively. As of December 31, 2013 and 2012, we have an aggregate receivable and payable, associated with transactions related to the Master Transition Services Agreement, of less than $0.1 each. |
Restructuring_Actions
Restructuring Actions | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Restructuring Actions | ' | |||||||||||
RESTRUCTURING ACTIONS | ||||||||||||
We have initiated various restructuring activities throughout the business during the past three years, of which only the Interconnect Solutions turnaround activities is considered to be individually significant. See further discussion on this plan below. Other less significant restructuring actions during 2013 include reduction in force initiatives, geographic sales presence realignment, and the exit of a non-core construction pump business. We also undertook various restructuring actions during 2012 primarily focused on reducing operating costs through reduction in force initiatives. The components of all restructuring costs incurred during each of the previous three years ended are presented in the table below. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
By component: | ||||||||||||
Severance costs | $ | 22.3 | $ | 10.9 | $ | 3.5 | ||||||
Asset write-offs | 3.9 | 0.2 | — | |||||||||
Other restructuring costs | 2.2 | 2.9 | 1.2 | |||||||||
Total restructuring costs | $ | 28.4 | $ | 14 | $ | 4.7 | ||||||
By segment: | ||||||||||||
Industrial Process | $ | 4.5 | $ | 0.3 | $ | 0.4 | ||||||
Motion Technologies | 5.1 | 2.2 | — | |||||||||
Interconnect Solutions | 17.2 | 7.2 | 2.9 | |||||||||
Control Technologies | 0.4 | 0.8 | 1.4 | |||||||||
Corporate and Other | 1.2 | 3.5 | — | |||||||||
The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for each of the previous two years ended. | ||||||||||||
2013 | 2012 | |||||||||||
Restructuring accruals - 1/1 | $ | 7.8 | $ | 4 | ||||||||
Restructuring costs | 28.4 | 14 | ||||||||||
Cash payments | (17.1 | ) | (9.7 | ) | ||||||||
Asset write-offs | (3.9 | ) | (0.2 | ) | ||||||||
Foreign exchange translation and other | (0.5 | ) | (0.3 | ) | ||||||||
Restructuring accrual - 12/31 | $ | 14.7 | $ | 7.8 | ||||||||
By accrual type: | ||||||||||||
Severance accrual | $ | 13 | $ | 7.8 | ||||||||
Facility carrying and other costs accrual | 1.7 | — | ||||||||||
The following is a rollforward of employee position eliminations associated with restructuring activities through 2013: | ||||||||||||
2013 | 2012 | |||||||||||
Planned reductions - 1/1 | 10 | 29 | ||||||||||
Additional planned reductions | 275 | 149 | ||||||||||
Actual reductions | (178 | ) | (168 | ) | ||||||||
Planned reductions - 12/31 | 107 | 10 | ||||||||||
Interconnect Solutions Turnaround Activities | ||||||||||||
During 2013, we initiated a comprehensive restructuring action to improve the overall cost structure of our Interconnect Solutions. The charges incurred during 2013 under this action primarily related to employee severance for 180 planned headcount reductions, and to a lesser extent, asset write-offs. We expect to incur further restructuring costs of approximately $20.0 under this plan, primarily during 2014, related to geographic footprint consolidation. The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions turnaround activities. | ||||||||||||
2013 | ||||||||||||
Restructuring accruals - 1/1 | $ | — | ||||||||||
Restructuring costs | 18.1 | |||||||||||
Cash payments | (6.1 | ) | ||||||||||
Asset Write-Offs | (3.9 | ) | ||||||||||
Foreign exchange translation and other | (0.1 | ) | ||||||||||
Restructuring accruals - 12/31 | $ | 8 | ||||||||||
Company_Transformation
Company Transformation | 12 Months Ended |
Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Company Transformation | ' |
COMPANY TRANSFORMATION | |
On October 31, 2011, the Company completed the Distribution of Exelis and Xylem. In connection with activities taken to create the revised organizational structure and to complete the Distribution (referred to herein as transformation costs) we recognized pre-tax expenses of $2.2, $20.8 and $636.2, respectively, during 2013, 2012 and 2011. We have presented $2.2, $13.0, and $396.1, respectively, of the pre-tax transformation costs within income from continuing operations and the remainder within income from discontinued operations. Transformation costs incurred during 2011 primarily relate to losses on the extinguishment of debt, asset impairments, and employee retention and severance. Amounts presented within discontinued operations are costs directly related to the Distribution, primarily advisory fees and information technology costs, which provide no future benefit to the Company. Transformation-related activities were substantially complete as of December 31, 2013. See Note 4, “Discontinued Operations,” for additional information. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
INCOME TAXES | ||||||||||||
For each of the years ended December 31, 2013, 2012, and 2011 the tax data related to continuing operations is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income (loss) components: | ||||||||||||
United States | $ | 28.5 | $ | 33 | $ | (464.4 | ) | |||||
International | 152 | 116.1 | 148.5 | |||||||||
Income (loss) from continuing operations before income tax | 180.5 | 149.1 | (315.9 | ) | ||||||||
Income tax expense (benefit) components: | ||||||||||||
Current income tax expense (benefit): | ||||||||||||
United States – federal | 10.6 | (32.6 | ) | (78.9 | ) | |||||||
United States – state and local | 4.2 | (8.7 | ) | (12.1 | ) | |||||||
International | 39.6 | 46.8 | 49.2 | |||||||||
Total current income tax expense (benefit) | 54.4 | 5.5 | (41.8 | ) | ||||||||
Deferred income tax expense (benefit) components: | ||||||||||||
United States – federal | (331.2 | ) | 40.1 | 318.2 | ||||||||
United States – state and local | (36.7 | ) | 9.9 | (14.6 | ) | |||||||
International | 3.9 | (15.9 | ) | (1.2 | ) | |||||||
Total deferred income tax expense (benefit) | (364.0 | ) | 34.1 | 302.4 | ||||||||
Income tax expense (benefit) | $ | (309.6 | ) | $ | 39.6 | $ | 260.6 | |||||
Effective income tax rate | (171.5 | )% | 26.6 | % | (82.5 | )% | ||||||
A reconciliation of the income tax expense (benefit) for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2013, 2012, and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Tax provision at U.S. statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Valuation allowance on deferred tax assets | (191.1 | ) | 27.7 | (108.1 | ) | |||||||
Tax exempt interest | (17.5 | ) | (19.7 | ) | 4.1 | |||||||
Tax on undistributed foreign earnings | 6.1 | 1.3 | (21.8 | ) | ||||||||
Foreign tax rate differential | (5.8 | ) | (3.0 | ) | 1.2 | |||||||
Audit settlements & unrecognized tax benefits | 3.8 | (13.2 | ) | — | ||||||||
U.S. permanent items | (1.3 | ) | 0.5 | — | ||||||||
U.S. tax on foreign earnings | (0.7 | ) | 0.5 | 0.4 | ||||||||
Other adjustments | (0.6 | ) | (2.8 | ) | (3.9 | ) | ||||||
State and local income tax | 0.6 | 1.4 | 0.5 | |||||||||
Medicare Part D subsidy | — | (1.1 | ) | 0.4 | ||||||||
Change in state tax rate | — | — | 9.7 | |||||||||
Effective income tax rate | (171.5 | )% | 26.6 | % | (82.5 | )% | ||||||
Our effective tax rate in 2013 was affected by changes in unrecognized tax benefits of approximately $5.9 and includes the completion of tax examinations and lapses in the statute of limitations. | ||||||||||||
As a result of investment opportunities and other factors, and their impact on the Company’s expected liquidity, a determination was made that certain earnings generated in Hong Kong, Luxembourg, Japan, and South Korea are not indefinitely reinvested. In 2013, the Company recorded an additional $11.0 of deferred tax liability on the undistributed foreign earnings. We have not provided for deferred taxes on the remaining excess of financial reporting over tax bases of investments in foreign subsidiaries in the amount of $506.6 because we plan to reinvest such earnings indefinitely outside the U.S. While the amount of U.S. federal income taxes, if such earnings are distributed in the future, cannot be determined, such taxes may be reduced by tax credits and other tax deductions. | ||||||||||||
We operate under tax holidays in China and Korea, which are effective through December 31, 2014 and 2015, respectively. The tax holidays are conditional upon our meeting certain research, employment and/or investment thresholds. The impact of these holidays decreased foreign taxes by $1.8 or $0.02 per diluted share in 2013. | ||||||||||||
Deferred tax assets and liabilities include the following: | ||||||||||||
2013 | 2012 | |||||||||||
Deferred Tax Assets: | ||||||||||||
Accruals | $ | 64.5 | $ | 65.2 | ||||||||
Asbestos | 272.7 | 296.7 | ||||||||||
Employee benefits | 106.6 | 137.2 | ||||||||||
Credit carryforwards | 47.2 | 46.1 | ||||||||||
Loss carryforwards | 125.2 | 119.3 | ||||||||||
Other | 34.4 | 40.1 | ||||||||||
Subtotal | 650.6 | 704.6 | ||||||||||
Valuation allowance | $ | (135.3 | ) | $ | (536.7 | ) | ||||||
Net deferred tax assets | 515.3 | 167.9 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Undistributed earnings | (82.3 | ) | (71.4 | ) | ||||||||
Intangibles | (58.8 | ) | (59.2 | ) | ||||||||
Accelerated depreciation | (25.8 | ) | (25.0 | ) | ||||||||
Investment | (0.4 | ) | (0.7 | ) | ||||||||
Total deferred tax liabilities | $ | (167.3 | ) | $ | (156.3 | ) | ||||||
Net deferred tax assets | $ | 348 | $ | 11.6 | ||||||||
Deferred taxes are presented in the Consolidated Balance Sheets as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 59.5 | $ | 19.9 | ||||||||
Non-current assets | 303.6 | 21.4 | ||||||||||
Current liabilities | — | (3.5 | ) | |||||||||
Other non-current liabilities | (15.1 | ) | (26.2 | ) | ||||||||
Net deferred tax assets | $ | 348 | $ | 11.6 | ||||||||
The Company released the valuation allowance against its U.S. deferred tax assets and recorded a tax benefit of $374.6 during 2013. The valuation allowance was originally recorded in 2011 on U.S. deferred tax assets, in part, due to a cumulative three-year loss position resulting primarily from previous asbestos remeasurement charges. This cumulative loss position was considered a significant source of negative evidence and limited our ability to weigh other subjective evidence such as our projections for future growth. The Company generated U.S. adjusted income in 2012 and 2013 and is now in a cumulative three year income position. Based on positive evidence, including the three year cumulative positive income and the absence of any significant negative evidence, management determined that it is more likely than not that the Company's U.S. deferred tax assets will be realized except for certain deferred tax assets attributable to state net operating losses and tax credits. | ||||||||||||
As a result of a cumulative loss, the Company established a valuation allowance on foreign net deferred tax assets in Brazil and the U.K. The Company continues to maintain a valuation allowance against certain foreign net deferred tax assets, primarily in Luxembourg, Germany and China. Overall, the increase in the foreign valuation allowance of $29.0 is primarily attributable to foreign net operating loss carryforwards in Luxembourg. | ||||||||||||
We have the following tax attributes available for utilization at December 31, 2013: | ||||||||||||
Attribute | Amount | First Year of Expiration | ||||||||||
U.S. federal net operating losses | $ | 2.1 | 12/31/23 | |||||||||
U.S. state net operating losses | 1,348.40 | 12/31/14 | ||||||||||
U.S. federal tax credits | 39 | 12/31/20 | ||||||||||
U.S. state tax credits | 8.2 | 12/31/14 | ||||||||||
Foreign net operating losses | 281.4 | 12/31/14 | ||||||||||
We have approximately $166.4 of net operating loss carryforwards in Luxembourg as of December 31, 2013 that do not expire. | ||||||||||||
Shareholders’ equity at December 31, 2013 and 2012 includes excess income tax benefits related to stock-based compensation in 2013 and 2012 of approximately $8.7 and $6.4, respectively. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
We recognize income tax benefits from uncertain tax positions only if, based on the technical merits of the position, it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits – January 1 | $ | 208.8 | $ | 198.7 | $ | 203.4 | ||||||
Additions for: | ||||||||||||
Prior year tax positions | 1.6 | 48.4 | 1.5 | |||||||||
Current year tax positions | 8 | 0.8 | 15.1 | |||||||||
Assumed in Acquisition | — | 3.8 | — | |||||||||
Reductions for: | ||||||||||||
Prior year tax positions | (55.4 | ) | (4.8 | ) | (21.2 | ) | ||||||
Settlements | (1.0 | ) | (33.6 | ) | — | |||||||
Expiration of Statute of Limitations | (0.8 | ) | (4.5 | ) | (0.1 | ) | ||||||
Unrecognized tax benefits – December 31 | $ | 161.2 | $ | 208.8 | $ | 198.7 | ||||||
As of December 31, 2013, $53.4 and $57.6 of the unrecognized tax benefits would affect the effective tax rate for continuing operations and discontinued operations respectively, if realized. Over the next twelve months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could change by $87.9 due to changes in audit status, expiration of statutes of limitations and other events. | ||||||||||||
See Note 4, “Discontinued Operations” for discussion of the Tax Matters Agreement. | ||||||||||||
In many cases, uncertain tax positions are related to tax years that remain subject to examination by the relevant taxing authorities. The Company is currently under examination in the Czech Republic, Germany, Italy, Korea, the U.K. and the U.S. The settlement of an examination could result in changes in amounts attributable to us through the Tax Matters Agreement entered into with Exelis and Xylem. Currently, we cannot reasonably estimate the amount of such changes. | ||||||||||||
The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2013: | ||||||||||||
Jurisdiction | Earliest | |||||||||||
Open Year | ||||||||||||
Czech Republic | 2008 | |||||||||||
Germany | 2006 | |||||||||||
Italy | 2007 | |||||||||||
Japan | 2010 | |||||||||||
Korea | 2008 | |||||||||||
United States | 2009 | |||||||||||
We classify interest relating to tax matters as a component of interest expense and tax penalties as a component of income tax expense in our Consolidated Statements of Operations. During 2013 and 2012, we recognized $2.0 and $(3.9) in net interest expense (income) from continuing operations related to tax matters, respectively. We had $17.5 and $13.6 of interest accrued from continuing and discontinued operations related to tax matters as of December 31, 2013 and 2012, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
EARNINGS PER SHARE | ||||||||||||
The following table provides a reconciliation of the data used in the calculation of basic and diluted common shares outstanding for the three years ended December 31, 2013, 2012 and 2011. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average common shares outstanding | 90.9 | 92.7 | 92.2 | |||||||||
Add: Weighted average restricted stock awards outstanding(a) | 0.1 | 0.3 | 0.6 | |||||||||
Basic weighted average common shares outstanding | 91 | 93 | 92.8 | |||||||||
Add: Dilutive impact of stock options and restricted stock units | 1.3 | 1.1 | — | |||||||||
Diluted weighted average common shares outstanding | 92.3 | 94.1 | 92.8 | |||||||||
(a) | Restricted stock awards containing rights to non-forfeitable dividends which participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share. | |||||||||||
The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three years ended December 31, 2013, 2012 and 2011 because they were anti-dilutive. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Anti-dilutive stock options | 0.2 | 2 | 2.1 | |||||||||
Average exercise price | $ | 26.83 | $ | 21.47 | $ | 16.7 | ||||||
Year(s) of expiration | 2023 | 2014-2022 | 2013-2022 | |||||||||
In addition, 0.1 of outstanding employee return on invested capital (ROIC) awards were excluded from the computation of diluted earnings per share for the year ended December 31, 2013, as the performance period related to ROIC awards has not been achieved. |
Receivables_Net
Receivables, Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
Receivables, Net | ' | |||||||||||
RECEIVABLES, NET | ||||||||||||
2013 | 2012 | |||||||||||
Trade accounts receivable | $ | 463.9 | $ | 403.3 | ||||||||
Notes receivable | 6.3 | 5.6 | ||||||||||
Other | 39.1 | 44.3 | ||||||||||
Receivables, gross | 509.3 | 453.2 | ||||||||||
Less: allowance for doubtful accounts | 12.6 | 12.9 | ||||||||||
Receivables, net | $ | 496.7 | $ | 440.3 | ||||||||
Receivables related to progress billings of $6.4 have been reclassified as of December 31, 2012 from the "Other" caption to the "Trade Accounts Receivable" caption to conform to the current period presentation. | ||||||||||||
The following table displays a rollforward of the allowance for doubtful accounts for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Allowance for doubtful accounts – January 1 | $ | 12.9 | $ | 12.9 | $ | 12.6 | ||||||
Charges to income | 1.8 | 1.6 | 2.8 | |||||||||
Write-offs | (1.7 | ) | (1.6 | ) | (2.2 | ) | ||||||
Foreign currency and other | (0.4 | ) | — | (0.3 | ) | |||||||
Allowance for doubtful accounts – December 31 | $ | 12.6 | $ | 12.9 | $ | 12.9 | ||||||
Inventories_Net
Inventories, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories, Net | ' | |||||||
INVENTORIES, NET | ||||||||
2013 | 2012 | |||||||
Finished goods | $ | 49.9 | $ | 64.1 | ||||
Work in process | 94.8 | 60.5 | ||||||
Raw materials | 166.7 | 136.6 | ||||||
Inventoried costs related to long-term contracts | 85.4 | 91.7 | ||||||
Total inventory before progress payments | 396.8 | 352.9 | ||||||
Less – progress payments | (80.9 | ) | (48.7 | ) | ||||
Inventories, net | 315.9 | 304.2 | ||||||
Other_Current_and_NonCurrent_A
Other Current and Non-Current Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Current and Non-Current Assets | ' | |||||||
OTHER CURRENT AND NON-CURRENT ASSETS | ||||||||
2013 | 2012 | |||||||
Short-term investments | $ | 112.9 | $ | 38.2 | ||||
Asbestos-related current assets | 84.5 | 82.6 | ||||||
Prepaid income tax | 23.6 | 66.7 | ||||||
Current deferred income taxes | 59.5 | 19.9 | ||||||
Other | 65.1 | 44 | ||||||
Other current assets | $ | 345.6 | $ | 251.4 | ||||
Other employee benefit-related assets | $ | 95.5 | $ | 87.7 | ||||
Capitalized software costs | 14.6 | 13.4 | ||||||
Environmental related assets | 11.7 | 12.3 | ||||||
Equity method investments | 4.7 | 8.6 | ||||||
Other | 18.4 | 29.2 | ||||||
Other non-current assets | $ | 144.9 | $ | 151.2 | ||||
Plant_Property_and_Equipment_N
Plant, Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Plant, Property and Equipment, Net | ' | |||||||
PLANT, PROPERTY AND EQUIPMENT, NET | ||||||||
2013 | 2012 | |||||||
Land and improvements | $ | 26.8 | $ | 18 | ||||
Machinery and equipment | 834.5 | 785.4 | ||||||
Buildings and improvements | 211.6 | 184.6 | ||||||
Furniture, fixtures and office equipment | 74.6 | 69.9 | ||||||
Construction work in progress | 59.8 | 43.7 | ||||||
Other | 8.5 | 9 | ||||||
Plant, property and equipment, gross | 1,215.80 | 1,110.60 | ||||||
Less: accumulated depreciation | (789.6 | ) | (737.5 | ) | ||||
Plant, property and equipment, net | $ | 426.2 | $ | 373.1 | ||||
Depreciation expense of $63.4, $54.6 and $56.4 was recognized in 2013, 2012 and 2011, respectively. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets, Net | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net | ' | |||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 by segment are as follows: | ||||||||||||||||||||||||
Industrial | Motion | Interconnect | Control | Total | ||||||||||||||||||||
Process | Technologies | Solutions | Technologies | |||||||||||||||||||||
Goodwill - December 31, 2011 | $ | 193.2 | $ | 46.9 | $ | 72.3 | $ | 185.1 | $ | 497.5 | ||||||||||||||
Goodwill acquired | 146.5 | — | — | — | 146.5 | |||||||||||||||||||
Adjustments to purchase price allocations | 2.6 | — | — | — | 2.6 | |||||||||||||||||||
Foreign currency | 3.2 | 0.9 | 0.7 | — | 4.8 | |||||||||||||||||||
Goodwill - December 31, 2012 | 345.5 | 47.8 | 73 | 185.1 | 651.4 | |||||||||||||||||||
Adjustments to purchase price allocations | 0.8 | — | — | — | 0.8 | |||||||||||||||||||
Foreign currency | 4.7 | 2 | 0.9 | — | 7.6 | |||||||||||||||||||
Goodwill - December 31, 2013 | $ | 351 | $ | 49.8 | $ | 73.9 | $ | 185.1 | $ | 659.8 | ||||||||||||||
Goodwill of $12.9 was disposed of during 2012 in connection with the sale of the Shape Cutting businesses on November 13, 2012. See Note 4, “Discontinued Operations” for further information. | ||||||||||||||||||||||||
Goodwill acquired during 2012 relates to the Bornemann acquisition. The purchase price allocation adjustment of $0.8 during 2013 is due to a fair value adjustment to certain environmental and royalty-related liabilities that existed at the acquisition date, partially offset by the receipt of $0.7 from the finalization of the Bornemann purchase price. As these amounts are not considered material, the adjustments were not retrospectively applied as if the accounting for the business combination had been completed at the acquisition date. | ||||||||||||||||||||||||
Based on the results of our 2013 annual impairment test, we determined that no impairment of goodwill existed as of the measurement date in 2013. Based on the results of our 2012 annual impairment test and subsequent test performed following the sale of the Shape Cutting Businesses, we determined that no impairment of goodwill existed as of either measurement date in 2012. However, future goodwill impairment tests could result in a charge to earnings. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth fiscal quarter and whenever events and changes in circumstances indicate there may be a potential impairment. | ||||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||
Information regarding our other intangible assets is as follows: | ||||||||||||||||||||||||
31-Dec-13 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Intangibles | Carrying | Amortization | Intangibles | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Customer relationships | $ | 84.9 | $ | (31.9 | ) | $ | 53 | $ | 84.7 | $ | (25.1 | ) | $ | 59.6 | ||||||||||
Proprietary technology | 30.3 | (7.6 | ) | 22.7 | 29.5 | (4.9 | ) | 24.6 | ||||||||||||||||
Patents and other | 16.4 | (13.0 | ) | 3.4 | 18 | (6.3 | ) | 11.7 | ||||||||||||||||
Finite-lived intangible total | 131.6 | (52.5 | ) | 79.1 | 132.2 | (36.3 | ) | 95.9 | ||||||||||||||||
Indefinite-lived intangibles | 27.8 | — | 27.8 | 27.4 | — | 27.4 | ||||||||||||||||||
Other Intangible Assets | $ | 159.4 | $ | (52.5 | ) | $ | 106.9 | $ | 159.6 | $ | (36.3 | ) | $ | 123.3 | ||||||||||
Intangible assets related to the acquisition of Bornemann included $11.4 of trademarks, $17.6 of customer relationships, and $17.1 of proprietary technology. The trademarks have been assigned an indefinite life. The customer relationships are expected to be amortized over a weighted average period of 9.6 years and the proprietary technology is expected to be amortized over a weighted average period of 12.2 years. | ||||||||||||||||||||||||
Indefinite-lived intangibles consist of brands and trademarks. Based on the results of its annual impairment tests, we determined that no impairment of the indefinite-lived intangibles existed as of the measurement date in 2013 or 2012. However, future impairment tests could result in a charge to earnings. We will continue to evaluate the indefinite-lived intangible assets on an annual basis as of the beginning of our fourth fiscal quarter and whenever events and changes in circumstances indicate there may be a potential impairment. | ||||||||||||||||||||||||
Customer relationships, proprietary technology and patents and other are amortized over weighted average lives of approximately 13.6 years, 12.3 years and 11.4 years, respectively. | ||||||||||||||||||||||||
Amortization expense related to intangible assets for 2013, 2012 and 2011 was $17.6, $10.2 and $8.7, respectively. Estimated amortization expense for each of the five succeeding years is as follows: | ||||||||||||||||||||||||
Year | Estimated | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||
2014 | $ | 11.8 | ||||||||||||||||||||||
2015 | 10 | |||||||||||||||||||||||
2016 | 9.5 | |||||||||||||||||||||||
2017 | 8.7 | |||||||||||||||||||||||
2018 | 7.3 | |||||||||||||||||||||||
Accrued_Liabilities_and_Other_
Accrued Liabilities and Other Non-Current Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Liabilities and Other Non-Current Liabilities | ' | |||||||
ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ||||||||
2013 | 2012 | |||||||
Compensation and other employee-related benefits | $ | 178.5 | $ | 147.7 | ||||
Asbestos-related liability | 85.1 | 92.4 | ||||||
Short-term loans and current maturities of long-term debt | 39.8 | 16.8 | ||||||
Accrued income taxes and other tax-related liabilities | 29.8 | 32.4 | ||||||
Customer-related liabilities | 55.6 | 54.6 | ||||||
Environmental and other legal matters | 38.5 | 38.6 | ||||||
Accrued warranty costs | 28.6 | 28.6 | ||||||
Other accrued liabilities | 44 | 47.2 | ||||||
Accrued and other current liabilities | $ | 499.9 | $ | 458.3 | ||||
Deferred income taxes and other tax-related accruals | $ | 116.2 | $ | 135.1 | ||||
Environmental liabilities | 85.1 | 84.9 | ||||||
Compensation and other employee-related benefits | 43.8 | 41.3 | ||||||
Other | 32.7 | 31 | ||||||
Other non-current liabilities | $ | 277.8 | $ | 292.3 | ||||
Leases_and_Rentals
Leases and Rentals | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Leases and Rentals | ' | |||
LEASES AND RENTALS | ||||
ITT leases certain offices, manufacturing buildings, land, machinery, automobiles, computers and other equipment. The majority of leases expire at various dates through 2027 and may include renewal and payment escalation clauses. ITT often pays maintenance, insurance and tax expense related to leased assets. Rental expenses under operating leases were $14.7, $14.3 and $15.3 for 2013, 2012 and 2011, respectively. Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2013 are shown below. | ||||
2014 | $ | 15 | ||
2015 | 13.7 | |||
2016 | 12.3 | |||
2017 | 9.9 | |||
2018 | 9.4 | |||
2019 and thereafter | 69.4 | |||
Total minimum lease payments | $ | 129.7 | ||
Debt
Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
DEBT | ||||||||
2013 | 2012 | |||||||
Commercial Paper | $ | 38 | $ | — | ||||
Short-term loans | — | 12.7 | ||||||
Current maturities of long-term debt | 1.3 | 3.6 | ||||||
Current capital leases | 0.5 | 0.5 | ||||||
Short-term loans and current maturities of long-term debt | 39.8 | 16.8 | ||||||
Non-current maturities of long-term debt | 7.6 | 8.5 | ||||||
Non-current capital leases | 1.5 | 1.6 | ||||||
Long-term debt and capital leases | 9.1 | 10.1 | ||||||
Total debt and capital leases | $ | 48.9 | $ | 26.9 | ||||
Our outstanding commercial paper as of December 31, 2013 had a weighted average interest rate of 0.44% and maturity terms less than one month from the date of issuance. | ||||||||
The fair value of long-term debt as of December 31, 2013 approximates the carrying value and carries an interest rate ranging from 4.20% to 5.40%. At December 31, 2013, assets of $10.3 were pledged as collateral. | ||||||||
At December 31, 2013, we had four interest rate swaps outstanding, with an aggregate notional amount of $11.9 and fair value of $0.6. The interest rate swaps convert floating-rate debt to a fixed rate. Changes in the fair value of the interest rate swaps are recorded in earnings as the interest rate swaps do not qualify for hedge accounting. | ||||||||
Principal payments over the next five years and thereafter are as follows: | ||||||||
2014 | $ | 39.8 | ||||||
2015 | 1.8 | |||||||
2016 | 1.5 | |||||||
2017 | 1.3 | |||||||
2018 | 0.9 | |||||||
Thereafter | 3.6 | |||||||
Revolving Credit Facility | ||||||||
On October 25, 2011, we entered into a competitive advance and revolving credit facility agreement (2011 Revolving Credit Agreement) with a consortium of third party lenders including JP Morgan Chase Bank, N.A., as administrative agent, and Citibank, N.A. as syndication agent. Upon its effectiveness at the Distribution, this agreement replaced our existing $1,500 three-year revolving credit facility due August 2013. The 2011 Revolving Credit Agreement provides for a four-year maturity with a one-year extension option upon satisfaction of certain conditions, and comprises an aggregate principal amount of up to $500 of (i) revolving extensions of credit (the revolving loans) outstanding at any time, (ii) competitive advance borrowing option which will be provided on an uncommitted competitive advance basis through an auction mechanism (the competitive advances), and (iii) letters of credit in a face amount up to $100 at any time outstanding. Subject to certain conditions, we are permitted to terminate permanently the total commitments and reduce commitments in minimum amounts of $10. We are also permitted, subject to certain conditions, to request that lenders increase the commitments under the facility by up to $200 for a maximum aggregate principal amount of $700. Voluntary prepayments are permitted in minimum amounts of $50. | ||||||||
At our election, the interest rate per annum applicable to the competitive advances will be based on either (i) a Eurodollar rate determined by reference to LIBOR, plus an applicable margin offered by the lender making such loans and accepted by us or (ii) a fixed percentage rate per annum specified by the lender making such loans. At our election, interest rate per annum applicable to the revolving loans will be based on either (i) a Eurodollar rate determined by reference to LIBOR, adjusted for statutory reserve requirements, plus an applicable margin or (ii) a fluctuating rate of interest determined by reference to the greatest of (a) the prime rate of JPMorgan Chase Bank, N.A., (b) the federal funds effective rate plus one-half of 1% or (c) the 1-month LIBOR rate, adjusted for statutory reserve requirements, plus 1%, in each case, plus an applicable margin. We had no amounts outstanding under the revolving credit facility as of December 31, 2013. | ||||||||
Our obligations under the credit facility are unconditionally guaranteed by each of our significant direct or indirect domestic subsidiaries. | ||||||||
The credit facility contains customary affirmative and negative covenants that, among other things, will limit or restrict our ability to: incur additional debt or issue guarantees; create liens; enter into certain sale and lease-back transactions; merge or consolidate with another person; sell, transfer, lease or otherwise dispose of assets; liquidate or dissolve; and enter into restrictive covenants. Additionally, the 2011 Revolving Credit Agreement requires us not to permit the ratio of consolidated total indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (leverage ratio) to exceed 3.00 to 1.00 at any time, or the ratio of consolidated EBITDA to consolidated interest expense (interest coverage ratio) to be less than 3.00 to 1.00. At December 31, 2013, our interest coverage ratio and leverage ratio were within the prescribed thresholds. | ||||||||
2011 Debt Extinguishment | ||||||||
During 2011, ITT extinguished long-term debt of $1,251.0, resulting in a loss of $324.9, plus incidental fees, which was recorded as a transformation cost. In connection with the extinguishment, we recognized a previously deferred gain of $42.9 on a terminated interest rate swap and expensed $6.1 of previously deferred debt issuance costs and unamortized debt discounts. Also during 2011, we terminated a capital lease by purchasing the leased properties which resulted in a charge of $4.6 recorded as a transformation cost. The leased properties include five manufacturing and office facilities, four of which were distributed to either Exelis or Xylem on the Distribution Date. |
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Postemployment Benefits [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Postretirement Benefit Plans | ' | |||||||||||||||||||||||||||||||||||
POSTRETIREMENT BENEFIT PLANS | ||||||||||||||||||||||||||||||||||||
Defined Contribution Plans | ||||||||||||||||||||||||||||||||||||
Substantially all of ITT’s U.S. and certain international employees are eligible to participate in a defined contribution plan. ITT sponsors numerous defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. Several of the plans require us to match a percentage of the employee contributions up to certain limits. Company contributions charged to income amounted to $15.3, $13.5, and $8.2 for 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||||||||||||||
At the Distribution Date, the ITT Corporation Retirement Savings Plan for Salaried Employees was created, which increased Company contributions from a maximum of 3.5% of base pay to 6% or 7%, depending on age and years of service, of total eligible pay which includes base pay, overtime and qualified bonuses. Additionally, for five years subsequent to the Distribution Date, the Company will provide transition credits to certain employees up to 5% of eligible pay. | ||||||||||||||||||||||||||||||||||||
The ITT Stock Fund, an investment option under the ITT Corporation Retirement Savings Plan for Salaried Employees and the ITT Hourly Savings Plan, is considered an employee stock ownership plan and, as a result, participants in the ITT Stock Fund may receive dividends in cash or may reinvest such dividends into the ITT Stock Fund. The ITT Stock Fund held approximately 0.3 shares of ITT common stock at December 31, 2013. | ||||||||||||||||||||||||||||||||||||
Defined Benefit Plans | ||||||||||||||||||||||||||||||||||||
ITT sponsors several defined benefit pension plans which have approximately 2,400 active participants; however, most of these plans have been closed to new participants for several years. As of December 31, 2013, of our total projected benefit obligation, the ITT Pension Plan for Bargaining Unit Employees Seneca Falls represented 35%, the ITT Consolidated Hourly Pension Plan represented 38%, other U.S. plans represented 4% and international pension plans represented 23%. The U.S. plans are generally for hourly employees with a flat dollar benefit formula based on years of service. International plan benefits are primarily determined based on participant years of service, future compensation, and age at retirement or termination. | ||||||||||||||||||||||||||||||||||||
ITT also provides health care and life insurance benefits for eligible U.S. employees upon retirement. In some cases, the plan is still open to new employees, but for the majority of our businesses these plans are closed to new participants. The majority of the liability pertains to retirees with postretirement medical insurance. | ||||||||||||||||||||||||||||||||||||
During 2013, management approved changes to certain of our defined benefit pension and postretirement plans, including the merging of plans and the elimination of future benefit accruals for plan participants as of December 31, 2013. These changes resulted in a decrease to ITT's net postretirement liability of $23.3 and a curtailment loss of $1.2. Future defined contribution plan changes were also approved increasing Company contributions for most U.S. hourly employees to a maximum of 6.0% of total eligible pay. | ||||||||||||||||||||||||||||||||||||
Balance Sheet Information | ||||||||||||||||||||||||||||||||||||
Amounts recognized as assets or liabilities in the Consolidated Balance Sheets for postretirement benefit plans reflect the funded status. The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Pension | Other | Total | Pension | Other | Total | |||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 268.8 | $ | 9.2 | $ | 278 | $ | 249.1 | $ | 7.9 | $ | 257 | ||||||||||||||||||||||||
Projected benefit obligation | 366 | 166.6 | 532.6 | 387 | 213 | 600 | ||||||||||||||||||||||||||||||
Funded status | $ | (97.2 | ) | $ | (157.4 | ) | $ | (254.6 | ) | $ | (137.9 | ) | $ | (205.1 | ) | $ | (343.0 | ) | ||||||||||||||||||
Amounts reported within: | ||||||||||||||||||||||||||||||||||||
Non-current assets | $ | 1.9 | $ | — | $ | 1.9 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Accrued liabilities | (4.8 | ) | (8.4 | ) | (13.2 | ) | (4.2 | ) | (8.5 | ) | (12.7 | ) | ||||||||||||||||||||||||
Non-current liabilities | (94.3 | ) | (149.0 | ) | (243.3 | ) | (133.7 | ) | (196.6 | ) | (330.3 | ) | ||||||||||||||||||||||||
A portion of our projected benefit obligation includes amounts that have not yet been recognized as expense in our results of operations. Such amounts are recorded within accumulated other comprehensive loss until they are amortized as a component of net periodic postretirement cost. The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Pension | Other | Total | Pension | Other | Total | |||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 126.9 | $ | 39.4 | $ | 166.3 | $ | 175.7 | $ | 75 | $ | 250.7 | ||||||||||||||||||||||||
Prior service cost (benefit) | 2.8 | (22.2 | ) | (19.4 | ) | 4.8 | (3.7 | ) | 1.1 | |||||||||||||||||||||||||||
Total | $ | 129.7 | $ | 17.2 | $ | 146.9 | $ | 180.5 | $ | 71.3 | $ | 251.8 | ||||||||||||||||||||||||
The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | |||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | $ | 303.6 | $ | 83.4 | $ | 387 | $ | 277.8 | $ | 52.3 | $ | 330.1 | ||||||||||||||||||||||||
Service cost | 4.9 | 1.7 | 6.6 | 4.8 | 1 | 5.8 | ||||||||||||||||||||||||||||||
Interest cost | 12.1 | 2.5 | 14.6 | 12.9 | 2.5 | 15.4 | ||||||||||||||||||||||||||||||
Amendments | 0.1 | — | 0.1 | — | — | — | ||||||||||||||||||||||||||||||
Actuarial (gain) loss | (22.9 | ) | (1.8 | ) | (24.7 | ) | 24.2 | 14.8 | 39 | |||||||||||||||||||||||||||
Benefits and expenses paid | (16.6 | ) | (3.2 | ) | (19.8 | ) | (16.1 | ) | (3.1 | ) | (19.2 | ) | ||||||||||||||||||||||||
Assumed in acquisition | — | — | — | — | 15 | 15 | ||||||||||||||||||||||||||||||
Foreign currency translation | — | 2.2 | 2.2 | — | 0.9 | 0.9 | ||||||||||||||||||||||||||||||
Benefit obligation – December 31 | $ | 281.2 | $ | 84.8 | $ | 366 | $ | 303.6 | $ | 83.4 | $ | 387 | ||||||||||||||||||||||||
The following table provides a rollforward of the projected benefit obligations for our other employee-related defined benefit plans for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | $ | 213 | $ | 191.8 | ||||||||||||||||||||||||||||||||
Service cost | 2.9 | 2.5 | ||||||||||||||||||||||||||||||||||
Interest cost | 8.3 | 9.5 | ||||||||||||||||||||||||||||||||||
Amendments | (19.0 | ) | (3.1 | ) | ||||||||||||||||||||||||||||||||
Actuarial (gain) loss | (30.4 | ) | 22 | |||||||||||||||||||||||||||||||||
Benefits paid | (8.2 | ) | (9.7 | ) | ||||||||||||||||||||||||||||||||
Benefit obligation – December 31 | $ | 166.6 | $ | 213 | ||||||||||||||||||||||||||||||||
The following table provides a rollforward of the pension plan assets and the funded status for our U.S. and international pension plans for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | |||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||
Plan assets – January 1 | $ | 247.1 | $ | 2 | $ | 249.1 | $ | 182.3 | $ | 2 | $ | 184.3 | ||||||||||||||||||||||||
Actual return on plan assets | 35.4 | 0.1 | 35.5 | 22.6 | 0.1 | 22.7 | ||||||||||||||||||||||||||||||
Employer contributions | 0.9 | 2.8 | 3.7 | 58.3 | 3 | 61.3 | ||||||||||||||||||||||||||||||
Benefits and expenses paid | (16.6 | ) | (2.9 | ) | (19.5 | ) | (16.1 | ) | (3.1 | ) | (19.2 | ) | ||||||||||||||||||||||||
Plan assets – December 31 | $ | 266.8 | $ | 2 | $ | 268.8 | $ | 247.1 | $ | 2 | $ | 249.1 | ||||||||||||||||||||||||
Funded status at end of year | $ | (14.4 | ) | $ | (82.8 | ) | $ | (97.2 | ) | $ | (56.5 | ) | $ | (81.4 | ) | $ | (137.9 | ) | ||||||||||||||||||
The following table provides a rollforward of the other employee-related defined benefit plan assets and the funded status for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||
Plan assets – January 1 | $ | 7.9 | $ | 7.5 | ||||||||||||||||||||||||||||||||
Actual return on plan assets | 1.3 | 0.4 | ||||||||||||||||||||||||||||||||||
Employer contributions | 8.2 | 9.7 | ||||||||||||||||||||||||||||||||||
Benefits paid | (8.2 | ) | (9.7 | ) | ||||||||||||||||||||||||||||||||
Plan assets – December 31 | $ | 9.2 | $ | 7.9 | ||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (157.4 | ) | $ | (205.1 | ) | ||||||||||||||||||||||||||||||
The accumulated benefit obligation for all defined benefit pension plans was $363.0 and $383.7 at December 31, 2013 and 2012, respectively. The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 237.7 | $ | 387 | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | 234.6 | 383.7 | ||||||||||||||||||||||||||||||||||
Fair value of plan assets | 138.6 | 249.1 | ||||||||||||||||||||||||||||||||||
Income Statement Information | ||||||||||||||||||||||||||||||||||||
The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2013, 2012 and 2011 as they pertain to our defined benefit pension plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | U.S. | Int’l | Total | ||||||||||||||||||||||||||||
Net periodic postretirement cost | ||||||||||||||||||||||||||||||||||||
Service cost | $ | 4.9 | $ | 1.7 | $ | 6.6 | $ | 4.8 | $ | 1 | $ | 5.8 | $ | 5.6 | $ | 0.9 | $ | 6.5 | ||||||||||||||||||
Interest cost | 12.1 | 2.5 | 14.6 | 12.9 | 2.5 | 15.4 | 13.4 | 2.5 | 15.9 | |||||||||||||||||||||||||||
Expected return on plan assets | (19.5 | ) | (0.1 | ) | (19.6 | ) | (18.2 | ) | (0.1 | ) | (18.3 | ) | (18.9 | ) | (0.1 | ) | (19.0 | ) | ||||||||||||||||||
Amortization of net actuarial loss (gain) | 8.3 | 0.6 | 8.9 | 6.5 | (0.2 | ) | 6.3 | 3.7 | (0.1 | ) | 3.6 | |||||||||||||||||||||||||
Amortization of prior service cost | 0.8 | — | 0.8 | 0.9 | — | 0.9 | 1.2 | — | 1.2 | |||||||||||||||||||||||||||
Net periodic postretirement cost | 6.6 | 4.7 | 11.3 | 6.9 | 3.2 | 10.1 | 5 | 3.2 | 8.2 | |||||||||||||||||||||||||||
Effect of curtailment / Special termination benefit | 1.2 | — | 1.2 | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||||||||||||
Total net periodic postretirement cost | 7.8 | 4.7 | 12.5 | 6.9 | 3.2 | 10.1 | 7.5 | 3.2 | 10.7 | |||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | (40.0 | ) | (1.8 | ) | (41.8 | ) | 19.8 | 14.8 | 34.6 | 51.6 | (1.1 | ) | 50.5 | |||||||||||||||||||||||
Amortization of net actuarial (loss) gain | (8.3 | ) | (0.6 | ) | (8.9 | ) | (6.5 | ) | 0.2 | (6.3 | ) | (3.7 | ) | 0.1 | (3.6 | ) | ||||||||||||||||||||
Amortization of prior service cost | (0.8 | ) | — | (0.8 | ) | (0.9 | ) | — | (0.9 | ) | (2.8 | ) | — | (2.8 | ) | |||||||||||||||||||||
Foreign currency translation | — | 0.5 | 0.5 | — | 0.4 | 0.4 | — | — | — | |||||||||||||||||||||||||||
Total change recognized in other comprehensive loss | (49.1 | ) | (1.9 | ) | (51.0 | ) | 12.4 | 15.4 | 27.8 | 45.1 | (1.0 | ) | 44.1 | |||||||||||||||||||||||
Total impact from net periodic postretirement cost and changes in other comprehensive loss | $ | (41.3 | ) | $ | 2.8 | $ | (38.5 | ) | $ | 19.3 | $ | 18.6 | $ | 37.9 | $ | 52.6 | $ | 2.2 | $ | 54.8 | ||||||||||||||||
Additionally, during 2011, ITT recorded expenses of approximately $15.3 related to the participation of ITT employees in the former U.S. ITT Salaried Retirement Plan (SRP). In connection with the Distribution, Exelis became the plan sponsor of the SRP and assumed all assets and liabilities of the plan. ITT's U.S. salaried employees ceased to accrue retirement benefits under the SRP and all benefits accrued as of the Distribution Date were frozen. | ||||||||||||||||||||||||||||||||||||
The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2013, 2012 and 2011 as they pertain to other employee-related defined benefit plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Net periodic postretirement cost | ||||||||||||||||||||||||||||||||||||
Service cost | $ | 2.9 | $ | 2.5 | $ | 1.8 | ||||||||||||||||||||||||||||||
Interest cost | 8.3 | 9.5 | 9.5 | |||||||||||||||||||||||||||||||||
Expected return on plan assets | (0.6 | ) | (0.5 | ) | (0.6 | ) | ||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 4.3 | 4.6 | 2.6 | |||||||||||||||||||||||||||||||||
Amortization of prior service credit | (0.4 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||||||||||||
Total net periodic postretirement cost | 14.5 | 16 | 13.2 | |||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | (31.1 | ) | 22.1 | 14.5 | ||||||||||||||||||||||||||||||||
Prior service credit | (19.0 | ) | (3.1 | ) | — | |||||||||||||||||||||||||||||||
Amortization of net actuarial loss | (4.3 | ) | (4.6 | ) | (2.6 | ) | ||||||||||||||||||||||||||||||
Amortization of prior service credit | 0.4 | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||
Total changes recognized in other comprehensive loss | (54.0 | ) | 14.5 | 12 | ||||||||||||||||||||||||||||||||
Total impact from net periodic postretirement cost and changes in other comprehensive loss | $ | (39.5 | ) | $ | 30.5 | $ | 25.2 | |||||||||||||||||||||||||||||
The following table provides the estimated net actuarial loss and prior service cost that is expected to be amortized from accumulated other comprehensive income into net periodic postretirement cost during 2014. | ||||||||||||||||||||||||||||||||||||
Pension | Other | Total | ||||||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 6.6 | $ | 2.3 | $ | 8.9 | ||||||||||||||||||||||||||||||
Prior service cost (credit) | 0.6 | (6.0 | ) | (5.4 | ) | |||||||||||||||||||||||||||||||
Total | $ | 7.2 | $ | (3.7 | ) | $ | 3.5 | |||||||||||||||||||||||||||||
Postretirement Plan Assumptions | ||||||||||||||||||||||||||||||||||||
The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental and developed in consultation with external advisors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Assumptions are reviewed annually and adjusted as necessary. The actuarial assumptions are based on the provisions of the applicable accounting pronouncements, review of various market data and discussion with our external advisors. Changes in these assumptions could materially affect our financial statements. | ||||||||||||||||||||||||||||||||||||
The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to our defined benefit pension plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||||||||||||||||
Obligation Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.8 | % | 3.2 | % | 4.1 | % | 3.1 | % | ||||||||||||||||||||||||||||
Rate of future compensation increase | N/A | 3.4 | % | N/A | 3.2 | % | ||||||||||||||||||||||||||||||
Cost Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 3.1 | % | 4.8 | % | 4.8 | % | ||||||||||||||||||||||||||||
Expected return on plan assets | 8 | % | 4.7 | % | 8 | % | 4.7 | % | ||||||||||||||||||||||||||||
The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to other employee-related defined benefit plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Obligation Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.7 | % | 4.1 | % | ||||||||||||||||||||||||||||||||
Cost Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 4.8 | % | ||||||||||||||||||||||||||||||||
Expected return on plan assets | 8 | % | 8 | % | ||||||||||||||||||||||||||||||||
The assumed discount rates reflect our expectation of the present value of expected future cash payments for benefits at the measurement date. We base the discount rate assumption on investment yields of high-quality fixed income securities at the measurement date during the expected benefits payment period. The discount rates were determined by considering an interest rate yield curve comprised of high quality corporate bonds, with maturities generally between zero and thirty years. Annual benefit payments are then discounted to present value using this yield curve to develop a single-point discount rate matching the plan’s payment characteristics. | ||||||||||||||||||||||||||||||||||||
The rate of future compensation increase assumption for foreign plans reflects our long-term actual experience and future and near-term outlook. The rate of future compensation increase assumption is not applicable for U.S. plans because the benefit formula is based on a years of service approach. | ||||||||||||||||||||||||||||||||||||
The expected long-term rate of return on assets reflects the expected returns for each major asset class in which the plans invest, the weight of each asset class in the target mix, the correlations among asset classes and their expected volatilities. Our expected return on plan assets is estimated by evaluating both historical returns and estimates of future returns based on our target asset allocation. Specifically, we estimate future returns based on independent estimates of asset class returns weighted by the target investment allocation. | ||||||||||||||||||||||||||||||||||||
Prior to the Distribution of Exelis and Xylem, the Company’s U.S. postretirement plans participated in a master trust that invested in asset classes that historically generated asset returns in excess of the expected long-term rate of return on plan assets. With the distribution of certain postretirement benefit plans and their respective plan assets to Exelis and Xylem, we developed a new target asset allocation that is expected to generate a lower level of returns on plan assets than were realized in the past. Based on this approach, in 2012 our weighted average estimate of the long-term annual rate of return on assets for pension plans was reduced to 8%. For postretirement plans that participate in the current master trust and participated in the master trust distributed to Exelis, the chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Expected rate of return on plan assets | 8 | % | 8 | % | 9 | % | ||||||||||||||||||||||||||||||
Actual rate of return on plan assets | 14.2 | % | 11.1 | % | (3.2 | )% | ||||||||||||||||||||||||||||||
For the recognition of net periodic postretirement cost, the calculation of the expected return on plan assets is generally derived using a market-related value of plan assets based on average asset values at the measurement date over the last five years. The use of fair value, rather than a market-related value, of plan assets could materially affect net periodic postretirement cost. | ||||||||||||||||||||||||||||||||||||
The assumed rate of future increases in the per capita cost of health care (the health care trend rate) is 8.0% for pre-age 65 retirees and 6.3% for post-age 65 retirees for 2014, decreasing ratably to 4.5% in 2021. Increasing the health care trend rates by one percent per year would have the effect of increasing the benefit obligation by $18.2 and the aggregate annual service and interest cost components by $2.0. A decrease of one percent in the health care trend rate would reduce the benefit obligation by $15.6 and the aggregate annual service and interest cost components by $1.6. To the extent that actual experience differs from these assumptions, the effect will be amortized over the average future working life or life expectancy of the plan participants. | ||||||||||||||||||||||||||||||||||||
Investment Policy | ||||||||||||||||||||||||||||||||||||
The investment strategy for managing worldwide postretirement benefit plan assets is to seek an optimal rate of return relative to an appropriate level of risk for each plan. Investment strategies vary by plan, depending on the specific characteristics of the plan, such as plan size and design, funded status, liability profile and legal requirements. | ||||||||||||||||||||||||||||||||||||
Substantially all of the postretirement benefit plan assets are managed on a commingled basis in a master investment trust. With respect to the master investment trust, the Company allows itself broad discretion to invest tactically to respond to changing market conditions, while staying reasonably within the target asset allocation ranges prescribed by its investment guidelines. In making these asset allocation decisions, the Company takes into account recent and expected returns and volatility of returns for each asset class, the expected correlation of returns among the different investments, as well as anticipated funding and cash flows. To enhance returns and mitigate risk, the Company diversifies its investments by strategy, asset class, geography and sector. | ||||||||||||||||||||||||||||||||||||
The following table provides the allocation of plan assets held in the master investment trust by asset category, as of December 31, 2013 and 2012, and the related targeted asset allocation ranges by asset category. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | Target | ||||||||||||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||||||||||||
Range | ||||||||||||||||||||||||||||||||||||
U.S. equities | 37 | % | 35 | % | 30-40 % | |||||||||||||||||||||||||||||||
International equities | 30 | % | 29 | % | 20-40 % | |||||||||||||||||||||||||||||||
Fixed income | 32 | % | 35 | % | 25-45 % | |||||||||||||||||||||||||||||||
Cash and other | 1 | % | 1 | % | 0-5 % | |||||||||||||||||||||||||||||||
The strategies and allocations of plan assets outside of the U.S. are managed locally and may differ significantly from those in the U.S. In general and as of December 31, 2013, non-U.S. plan assets of approximately $2.0 are managed closely to their strategic allocations. | ||||||||||||||||||||||||||||||||||||
Fair Value of Plan Assets | ||||||||||||||||||||||||||||||||||||
In measuring plan assets at fair value, a fair value hierarchy is applied which categorizes and prioritizes the inputs used to estimate fair value into three levels. The fair value hierarchy is based on maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. Classification within the fair value hierarchy is based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows: | ||||||||||||||||||||||||||||||||||||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. | |||||||||||||||||||||||||||||||||||
• | Level 2 inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices (in non-active markets or in active markets for similar assets or liabilities), inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. | |||||||||||||||||||||||||||||||||||
• | Level 3 inputs are unobservable inputs for the assets or liabilities. | |||||||||||||||||||||||||||||||||||
In certain instances, fair value is estimated using quoted market prices obtained from external pricing services. In obtaining such data from the pricing service, the Company has evaluated the methodologies used to develop the estimate of fair value in order to assess whether such valuations are representative of fair value, including net asset value (NAV). Additionally, in certain circumstances, the Company may adjust NAV reported by an asset manager when sufficient evidence indicates NAV is not representative of fair value. | ||||||||||||||||||||||||||||||||||||
The following is a description of the valuation methodologies and inputs used to measure fair value for major categories of investments. | ||||||||||||||||||||||||||||||||||||
• | Equities – Open ended mutual funds, collective trusts and commingled funds are measured at NAV. These funds are generally classified within Level 2 of the fair value hierarchy. | |||||||||||||||||||||||||||||||||||
• | Fixed income – U.S. government securities are generally valued using quoted prices of securities with similar characteristics. Corporate bonds and notes are generally valued by using pricing models (e.g., discounted cash flows), quoted prices of securities with similar characteristics or broker quotes. Fixed income securities are generally classified in Level 2 of the fair value hierarchy. Other employee benefit plan assets include an investment in a structured security valued using broker quotes. Due to the significance of unobservable inputs involved in the broker quote, the investment is classified within Level 3 of the fair value hierarchy. | |||||||||||||||||||||||||||||||||||
The following table provides the fair value of plan assets held by our postretirement benefit plans, at December 31, 2013 and 2012, by asset class. | ||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||||||||||||||||||
2013 | Total | Level 2 | Total | Level 3 | ||||||||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||||||
U.S. | $ | 98.2 | $ | 98.2 | $ | — | $ | — | ||||||||||||||||||||||||||||
International | 56.6 | 56.6 | — | — | ||||||||||||||||||||||||||||||||
Emerging Markets | 25.5 | 25.5 | — | — | ||||||||||||||||||||||||||||||||
Fixed income | 85 | 85 | 9.2 | 9.2 | ||||||||||||||||||||||||||||||||
Cash and other | 3.5 | 3.5 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 268.8 | $ | 268.8 | $ | 9.2 | $ | 9.2 | ||||||||||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||||||||||||||||||
2012 | Total | Level 2 | Total | Level 3 | ||||||||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||||||
U.S. | $ | 86.9 | $ | 86.9 | $ | — | $ | — | ||||||||||||||||||||||||||||
International | 46 | 46 | — | — | ||||||||||||||||||||||||||||||||
Emerging Markets | 26.2 | 26.2 | — | — | ||||||||||||||||||||||||||||||||
Fixed income | 86.1 | 86.1 | 7.9 | 7.9 | ||||||||||||||||||||||||||||||||
Cash and other | 3.9 | 3.9 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 249.1 | $ | 249.1 | $ | 7.9 | $ | 7.9 | ||||||||||||||||||||||||||||
There have been no significant realized or unrealized gains and losses, purchases, sales, settlements or transfers of assets within our other employee-related benefit plans measured using significant unobservable inputs (Level 3). | ||||||||||||||||||||||||||||||||||||
Contributions | ||||||||||||||||||||||||||||||||||||
While we make contributions to our postretirement benefit plans when considered necessary or advantageous to do so, the minimum funding requirements established by local government funding or taxing authorities, or established by other agreements, may influence future contributions. Funding requirements under IRS rules are a major consideration in making contributions to our post-retirement plans. In addition, we fund certain of our international pension plans in countries where funding is allowable and tax-efficient. During 2013 and 2012, we contributed $11.9 and $71.0 to our postretirement benefit plans, respectively, of which $0.9 and $58.3 was to U.S. pension plans. | ||||||||||||||||||||||||||||||||||||
We anticipate making contributions to our global postretirement plans of $15.0 during 2014, of which $1.8 has been made in the first quarter. | ||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||||||||||||||||||
The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans. | ||||||||||||||||||||||||||||||||||||
U.S. | Int’l | Other | ||||||||||||||||||||||||||||||||||
Pension | Pension | Benefits | ||||||||||||||||||||||||||||||||||
2014 | $ | 16.3 | $ | 5 | $ | 10.5 | ||||||||||||||||||||||||||||||
2015 | 16.7 | 4.2 | 10.7 | |||||||||||||||||||||||||||||||||
2016 | 17.2 | 4 | 10.9 | |||||||||||||||||||||||||||||||||
2017 | 17.7 | 4.3 | 11 | |||||||||||||||||||||||||||||||||
2018 | 18.1 | 4.1 | 11 | |||||||||||||||||||||||||||||||||
2019 – 2022 | 95.4 | 22.1 | 53.2 | |||||||||||||||||||||||||||||||||
LongTerm_Incentive_Employee_Co
Long-Term Incentive Employee Compensation | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Long-Term Incentive Employee Compensation | ' | ||||||||||||||||||||||||||
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | |||||||||||||||||||||||||||
The 2011 Omnibus Incentive Plan (2011 Incentive Plan) was approved by shareholders and established in May of 2011 to provide for the awarding of options on common shares and full value restricted common shares or units to employees and non-employee directors. The number of shares initially available for issuance to participants under the 2011 Incentive Plan was 4.6. The 2011 Incentive Plan replaced the ITT Amended and Restated 2003 Equity Incentive Plan (2003 Incentive Plan) on a prospective basis and no future grants will be made under the 2003 Incentive Plan. However, any shares remaining available for issuance under the 2003 Incentive Plan became available for grant under the 2011 Incentive Plan as of the date the 2011 Incentive Plan was approved by shareholders. In connection with the Distribution, and per the terms of the 2011 Incentive Plan, an equitable adjustment which preserved the intrinsic value of the awards after giving effect to the distribution of Exelis and Xylem was made (referred to as the Equitable Adjustment). As of December 31, 2013, 40.2 shares were available for future grants under the 2011 Incentive Plan. ITT makes shares available for the exercise of stock options or vesting of restricted shares or units by purchasing shares in the open market or by issuing shares from treasury stock. | |||||||||||||||||||||||||||
Prior to 2013, our long-term incentive plan (LTIP) was comprised of three components: non-qualified stock options (NQOs), restricted stock units (RSUs), and a total shareholder return award (TSR). The majority of RSUs settle in shares; however RSUs granted to international employees are settled in cash. We account for NQOs and equity settled RSUs as equity-based compensation awards while cash-settled TSR awards granted prior to 2013 and cash settled RSUs are accounted for as liability-based awards. Beginning in 2013, we replaced the TSR component of our LTIP with a Performance Unit award component. Performance Unit (PSU) awards are based on both a relative total shareholder return metric as well as a return on invested capital (ROIC) metric, equally weighted, providing a balance between relative and absolute long-term performance. The PSU awards will settle in shares, dependent upon performance, following a three-year performance period to further align payouts with stock price performance. The PSU awards are accounted for as two distinct awards, an ROIC award and a TSR award. We account for NQOs, RSUs, ROIC awards, and share-settled TSR awards granted in 2013 as equity-based compensation awards. | |||||||||||||||||||||||||||
Long-term incentive employee compensation costs are primarily recorded within general and administrative expenses, and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Share-based compensation expense, equity-based awards | $ | 13.3 | $ | 12.9 | $ | 23.3 | |||||||||||||||||||||
Share-based compensation expense, liability-based awards | 3.8 | 1.9 | 2.1 | ||||||||||||||||||||||||
Total share-based compensation expense in operating income (loss)(a) | $ | 17.1 | $ | 14.8 | $ | 25.4 | |||||||||||||||||||||
(a) | Share-based compensation expense incurred during 2013, 2012, and 2011 includes $0.2, $0.5 and $4.7, respectively, classified as a transformation cost in the Consolidated Statements of Operations related to the modification of equity awards. Also, included in 2011 is $8.3 of accelerated expense recognition primarily related to the retirement of Steven R. Loranger, our former Chairman, President and Chief Executive Officer. | ||||||||||||||||||||||||||
At December 31, 2013, there was $18.7 of total unrecognized compensation cost related to non-vested equity awards. This cost is expected to be recognized ratably over a weighted-average period of 2.1 years. Additionally, unrecognized compensation cost related to liability-based awards was $4.2, which is expected to be recognized ratably over a weighted-average period of 1.6 years. | |||||||||||||||||||||||||||
Conversion and Cancellation of Outstanding Equity at Spin Date | |||||||||||||||||||||||||||
In connection with the Distribution, ITT modified its outstanding equity awards on October 31, 2011 (the modification date). For equity awards issued through employee compensation arrangements, the awards were generally modified such that, following the Distribution, the employee only held equity in their future employer and the intrinsic value of the awards was preserved through the Equitable Adjustment. Awards held by members of the Board of Directors were modified so that the awardee continued to hold an award in each of the three companies following the Distribution. | |||||||||||||||||||||||||||
As a result of the Equitable Adjustment, an option modification expense of $7.9 was recorded during 2011 for awards that were fully vested on the modification date. The option modification included $3.2 of expense allocated to discontinued operations for employees who transferred to Exelis or Xylem. In addition, $0.2 and $0.5 of incremental fair value was amortized during 2013 and 2012, respectively, for awards unvested on the modification date for employees who remained with ITT. | |||||||||||||||||||||||||||
Pursuant to the completion of the Distribution on October 31, 2011, 1.2 stock options and 0.5 restricted equity awards held by the employees of Exelis and Xylem were converted to equity awards in the underlying common stock of their respective employer and were cancelled as ITT equity awards. | |||||||||||||||||||||||||||
Non-Qualified Stock Options | |||||||||||||||||||||||||||
Options generally vest over or at the conclusion of a three-year period and are exercisable in seven or ten-year periods, except in certain instances of death, retirement or disability. Options granted between 2004 and 2009 were awarded with a contractual term of seven years. Options granted prior to 2004 and after 2009 were awarded with a contractual term of ten years. The exercise price per share is the fair market value of the underlying common stock on the date each option is granted. | |||||||||||||||||||||||||||
A summary of the status of our NQOs as of December 31, 2013, 2012 and 2011 and changes during the years then ended is presented below. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Stock Options | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Outstanding – January 1 | 4.3 | $ | 18.46 | 8 | $ | 16.7 | 3.7 | $ | 85.08 | ||||||||||||||||||
Granted | 0.4 | 26.82 | 0.4 | 22.8 | 0.3 | 115.36 | |||||||||||||||||||||
Exercised | (1.9 | ) | 17.37 | (3.8 | ) | 15.35 | (0.7 | ) | 76.27 | ||||||||||||||||||
Cancelled or expired | (0.1 | ) | 16.15 | (0.3 | ) | 17.21 | (1.3 | ) | (b) | 92.76 | |||||||||||||||||
Outstanding on Distribution Date before Equitable Adjustment | — | — | — | — | 2 | 88.52 | |||||||||||||||||||||
Outstanding on Distribution Date after Equitable Adjustment | — | — | — | — | 8 | 16.18 | |||||||||||||||||||||
November/December 2011 Activity: | |||||||||||||||||||||||||||
Granted | — | — | — | — | 0.7 | 20.28 | |||||||||||||||||||||
Exercised | — | — | — | — | (0.7 | ) | 13.87 | ||||||||||||||||||||
Outstanding – December 31 | 2.7 | $ | 20.46 | 4.3 | $ | 18.46 | 8 | $ | 16.7 | ||||||||||||||||||
Options exercisable – December 31 | 1.5 | $ | 18.34 | 2.9 | $ | 17.1 | 6.3 | $ | 16.03 | ||||||||||||||||||
(b) | Includes 1.2 shares cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average exercise price of $92.20. | ||||||||||||||||||||||||||
The aggregate intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during 2013, 2012 and 2011 was $26.3, $24.7 and $29.8, respectively. | |||||||||||||||||||||||||||
The amount of cash received from the exercise of stock options was $34.8, $58.0 and $61.6 for 2013, 2012 and 2011, respectively. The income tax benefit realized during 2013, 2012 and 2011 associated with stock option exercises and lapses of restricted stock was $13.4, $11.0 and $16.7, respectively. We classify the cash flows attributable to excess tax benefits arising from stock option exercises and restricted stock lapses as a financing activity. Excess tax benefits arising from stock option exercises and restricted stock lapses were $8.7, $6.4 and $7.2 for 2013, 2012 and 2011, respectively. The following table summarizes information about ITT’s stock options at December 31, 2013: | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | |||||||||||||||||||
Exercise | Average | Average | Intrinsic | Average | Average | Intrinsic | |||||||||||||||||||||
Prices | Remaining | Exercise | Value | Remaining | Exercise | Value | |||||||||||||||||||||
Contractual Life | Price | Contractual Life | Price | ||||||||||||||||||||||||
(in years) | (in years) | ||||||||||||||||||||||||||
$12-$15 | 0.5 | 1.1 | $ | 13.19 | $ | 14 | 0.5 | 1.1 | $ | 13.19 | $ | 14 | |||||||||||||||
$15-$20 | 0.4 | 4.5 | 19.92 | 9.7 | 0.4 | 4.5 | 19.92 | 9.7 | |||||||||||||||||||
$20-$25 | 1.4 | 7.1 | 21.39 | 31.9 | 0.6 | 6.1 | 20.94 | 15 | |||||||||||||||||||
$25-$30 | 0.4 | 9.2 | 26.82 | 5.8 | — | — | — | — | |||||||||||||||||||
2.7 | 6 | $ | 20.46 | $ | 61.4 | 1.5 | 4.2 | $ | 18.34 | $ | 38.7 | ||||||||||||||||
The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on ITT’s closing stock price of $43.42 as of December 31, 2013, which would have been received by the option holders had all option holders exercised their options as of that date. There was no options “out-of-the-money” as of December 31, 2013. | |||||||||||||||||||||||||||
As of December 31, 2013, the total number of stock options expected to vest (including those that have already vested) was 2.6. These stock options have a weighted-average exercise price of $20.37, an aggregate intrinsic value of $60.6 and a weighted-average remaining contractual life of 5.1 years. | |||||||||||||||||||||||||||
The fair value of each option grant was estimated on the date of grant using the binomial lattice pricing model which incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following are weighted-average assumptions for 2013, 2012 and 2011: | |||||||||||||||||||||||||||
2013 | 2012 | November 7, | 2011 | ||||||||||||||||||||||||
2011 Grants | Grants Before | ||||||||||||||||||||||||||
Distribution | |||||||||||||||||||||||||||
Dividend yield | 1.5 | % | 1.6 | % | 1.8 | % | 1.7 | % | |||||||||||||||||||
Expected volatility | 29.9 | % | 34.1 | % | 39.3 | % | 24.7 | % | |||||||||||||||||||
Expected life (in years) | 6.4 | 6.9 | 7 | 7 | |||||||||||||||||||||||
Risk-free rates | 1.1 | % | 1.4 | % | 1.5 | % | 3.1 | % | |||||||||||||||||||
Weighted-average grant date fair value | $ | 6.62 | $ | 6.71 | $ | 6.97 | $ | 29.7 | |||||||||||||||||||
Expected volatilities for option grants prior to the Distribution were based on ITT’s stock price history, including implied volatilities from traded options on our stock. Expected volatilities for option grants subsequent to the Distribution were based on a peer average of historical and implied volatility. ITT uses historical data to estimate option exercise and employee termination behavior within the valuation model. Option characteristics are considered separately for valuation purposes. We utilized two employee groups for option grant valuation purposes for periods prior to the distribution and have utilized one group for all subsequent option grant valuations. The expected life represents an estimate of the period of time options are expected to remain outstanding. The expected life provided above represents the weighted average of expected behavior for certain groups of employees who have historically exhibited different behavior. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of option grant. | |||||||||||||||||||||||||||
Restricted Stock Units and Performance Units | |||||||||||||||||||||||||||
Beginning in 2011, the Compensation Committee of the Board of Directors elected to grant RSUs to employees, as opposed to restricted stock awards (RSAs) which were awarded in periods prior to 2011. The Committee decided to grant RSUs rather than RSAs in 2011 because RSUs provide a consistent tax treatment for domestic and international employees. RSUs provide the same economic risk or reward as RSAs, but recipients do not have voting rights and do not receive cash dividends during the restriction period. Dividend equivalents on RSUs, which are subject to forfeiture, are accrued and paid in cash upon vesting of the RSU, which typically occurs three years from the date of grant. If an employee retires or is terminated other than for cause, a pro rata portion of the RSU may vest. The fair value of restricted stock awards and restricted stock units is determined using the closing price of the Company’s common stock on date of grant. | |||||||||||||||||||||||||||
The fair value of the ROIC awards was based on the closing price of ITT common stock on the date of grant less the present value of expected dividend payments during the vesting period. A dividend yield of 1.49% was assumed based on ITT's annualized dividend payment of $0.40 per share and the March 5, 2013 closing stock price of $26.76. The fair value of the ROIC award is fixed on the grant date; however, a probability assessment is performed each reporting period to estimate the likelihood of achieving the ROIC targets and the amount of compensation to be recognized. The ROIC award payout is subject to a payout factor which includes a maximum and minimum payout. | |||||||||||||||||||||||||||
The fair value of the TSR award was measured using a Monte Carlo simulation, measuring potential total shareholder return for ITT relative to the other companies in the S&P 400 Capital Goods Index (the TSR Performance Group). The expected volatility of ITT's stock price was based on the historical volatility of a peer group while expected volatility for the other companies in the TSR Performance Group was based on their own stock price history. All volatility and correlation measures were based on three years of daily historical price data through March 5, 2013, corresponding to the three-year performance period of the award. The TSR award payout is subject to a multiplier which includes a maximum and minimum payout. As the grant date occurred after the beginning of the performance period, actual TSR performance between the beginning of the performance period (December 2012 average closing stock price) and the grant date was reflected in the valuation. A dividend yield of 1.49% was assumed based on ITT's annualized dividend payment of $0.40 per share and the March 5, 2013 closing stock price of $26.76 | |||||||||||||||||||||||||||
The table below provides a rollforward of outstanding RSUs, PSUs, and RSAs for each of the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Restricted Stock and | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||
Performance Units | Average Grant | Average Grant | Average | ||||||||||||||||||||||||
Date Fair Value | Date Fair | Grant Date | |||||||||||||||||||||||||
Value | Fair Value | ||||||||||||||||||||||||||
Outstanding – January 1 | 1.2 | $ | 21.06 | 1.4 | $ | 18.55 | 0.9 | $ | 89.7 | ||||||||||||||||||
Granted | 0.6 | 28.16 | 0.4 | 22.56 | 0.3 | 115.18 | |||||||||||||||||||||
Lapsed | (0.4 | ) | 20.25 | (0.5 | ) | 15.21 | (0.3 | ) | 99.53 | ||||||||||||||||||
Canceled | (0.1 | ) | 22.68 | (0.1 | ) | 20.58 | (0.6 | ) | (c) | 95.3 | |||||||||||||||||
Outstanding on Distribution Date before equitable adjustment | — | — | — | — | 0.3 | 93.42 | |||||||||||||||||||||
Outstanding on Distribution Date after equitable adjustment | — | — | — | — | 1 | 17.94 | |||||||||||||||||||||
November/December 2011 Activity: | |||||||||||||||||||||||||||
Granted | — | — | — | — | 0.4 | 20.27 | |||||||||||||||||||||
Outstanding – December 31 | 1.3 | $ | 24.17 | 1.2 | $ | 21.06 | 1.4 | $ | 18.55 | ||||||||||||||||||
(c) | Includes a total of 0.5 RSUs and RSAs canceled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average grant date fair value of $95.14. | ||||||||||||||||||||||||||
The table below provides the number of the outstanding equity settled RSUs, PSU's, RSA's and cash settled RSUs as of December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Equity settled RSUs | 1 | 0.9 | 0.8 | ||||||||||||||||||||||||
Cash settled RSUs | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||
PSUs | 0.2 | — | — | ||||||||||||||||||||||||
RSAs | — | 0.2 | 0.5 | ||||||||||||||||||||||||
As of December 31, 2013, the total number of RSUs and PSUs expected to vest was 0.9 and 0.3, respectively. The number of PSUs expected to vest is based on current performance estimates. | |||||||||||||||||||||||||||
Total Shareholder Return Awards | |||||||||||||||||||||||||||
The TSR award plan is a performance-based cash award incentive program provided to key employees of ITT. TSR awards, granted prior to 2013, are accounted for as liability-based awards. The fair value of outstanding awards is determined at the conclusion of the three-year performance period by measuring ITT’s total shareholder return percentage against the total shareholder return performance of other stocks generally comprising the S&P 400 Capital Goods Index. We reassess the fair value of our TSR awards at the end of each reporting period using actual total shareholder return data over the performance period to date as well as a Monte Carlo simulation for potential future price movements. Payment, if any, typically occurs during the first quarter of each year and is based on the TSR performance comparison measured against targets established at the time of the award. No payments were made during either 2013, 2012, or 2011 under the TSR award plan. The estimated TSR liability as of December 31, 2013 is $3.8. | |||||||||||||||||||||||||||
In connection with the Distribution, a proportionate number of outstanding TSR awards vested corresponding to the percentage of time passed between original grant date and October 31, 2011 (the vested portion). The fair value of the vested portion on October 31, 2011 was nil, as the performance factor for each TSR grant was below the minimum threshold. The unvested portion of TSR awards (the percent of time remaining between October 31, 2011 and the awards originally stated vesting date) were modified depending on the year of grant. The unvested portion of the 2010 and 2011 TSR awards were modified through the granting of RSU awards with a grant date fair value equal to the unvested portion at target. The replacement RSU awards maintain the vesting date established in the original TSR award agreement. No compensation expense was recognized in connection with these modifications as the incremental fair value resulting from the modification pertains to the unvested portion of the original TSR award. The deferred compensation cost of $2.2, as of the modification date, was recognized straight-line over the remaining vesting periods which concluded on December 31, 2013. |
Capital_Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Capital Stock | ' |
CAPITAL STOCK | |
ITT has authority to issue an aggregate of 300 shares of capital stock, of which 250 shares have been designated as Common Stock having a par value of $1 per share and 50 shares have been designated as Preferred Stock not having any par or stated value. There was no Preferred Stock outstanding as of December 31, 2013 and 2012. | |
The stockholders of ITT common stock are entitled to receive dividends when and as declared by ITT’s Board of Directors. Dividends are paid quarterly. Dividends declared were $0.40, $0.364 and $1.591 per common share in 2013, 2012, and 2011, respectively. | |
On October 27, 2006, a three-year $1 billion share repurchase program (2006 Share Repurchase Program) was approved by our Board of Directors. On December 16, 2008, the provisions of the share repurchase program were modified by our Board of Directors to replace the original three-year term with an indefinite term. During 2013 and 2012, we repurchased 3.1 and 5.1 shares of common stock for $85.2 and $113.4, respectively. Through December 2013, we had repurchased 15.3 shares for $629.3, including commissions, under the $1 billion share repurchase program. | |
Separate from the 2006 Share Repurchase Program, the Company repurchased 0.1 shares, 0.1 shares, and 0.1 shares for an aggregate price of $2.7, $3.4, and $6.6, during 2013, 2012 and 2011, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units. | |
We make shares available for the exercise of stock options and vesting of restricted stock by purchasing shares in the open market or by issuing shares from treasury stock. During 2013, 2012, and 2011, we issued 2.3 shares, 4.0 shares, and 1.7 shares, respectively, related to equity compensation arrangements. As of December 31, 2013 and 2012, 13.0 shares and 11.9 shares of Common Stock were held in our treasury account, respectively. | |
On October 31, 2011, the distribution of Exelis and Xylem from ITT was completed. On October 31, 2011, the stockholders of record as of the Record Date received one share of Xylem common stock and one share of Exelis common stock for each share of ITT common stock held as of the Record Date. The Distribution was completed pursuant to a Distribution Agreement, effective as of October 25, 2011, among ITT, Exelis and Xylem. | |
On October 31, 2011, we completed the 1:2 Reverse Stock Split. The par value of our common stock remained $1 per share following the 1:2 Reverse Stock Split. All preferred and common stock shares available, issued and outstanding, as well as share prices and earnings per share give effect to the 1:2 Reverse Stock Split in all periods presented. Cash payments made to settle fractional shares resulting from the 1:2 Reverse Stock Split were immaterial. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||||||||
From time to time, we are involved in legal proceedings that are incidental to the operation of our businesses. Some of these proceedings allege damages relating to environmental exposures, intellectual property matters, copyright infringement, personal injury claims, employment and employee benefit matters, government contract issues and commercial or contractual disputes, sometimes related to acquisitions or divestitures. We will continue to defend vigorously against all claims. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have any material adverse impact on our financial statements, unless otherwise noted below. | ||||||||||||||||||||||||
Asbestos Matters | ||||||||||||||||||||||||
Background | ||||||||||||||||||||||||
ITT, including its subsidiary Goulds Pumps, Inc., has been joined as a defendant with numerous other companies in product liability lawsuits alleging personal injury due to asbestos exposure. These claims generally allege that certain products sold by us or our subsidiaries prior to 1985 contained a part manufactured by a third party (e.g., a gasket) which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. | ||||||||||||||||||||||||
As of December 31, 2013, there were 61 thousand pending active claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: | ||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pending claims – Beginning | 96 | 105 | 104 | |||||||||||||||||||||
New claims | 5 | 4 | 5 | |||||||||||||||||||||
Settlements | (3 | ) | (1 | ) | (2 | ) | ||||||||||||||||||
Dismissals(a) | (19 | ) | (12 | ) | (2 | ) | ||||||||||||||||||
Pending claims – Ending | 79 | 96 | 105 | |||||||||||||||||||||
Pending inactive claims(a) | 18 | 29 | 39 | |||||||||||||||||||||
Pending active claims | 61 | 67 | 66 | |||||||||||||||||||||
(a) | The 2013, 2012, and the 2011 dismissals reported in the table above include the dismissal of approximately 12 thousand ,12 thousand, and 10 thousand claims respectively, which were considered pending inactive claims. Inactive claims represent pending claims in Mississippi filed prior to 2004, which have been excluded from our asbestos measurement because the plaintiffs cannot demonstrate a significant compensable loss. As such, management believes these claims have little to no value. | |||||||||||||||||||||||
Frequently, plaintiffs are unable to identify any ITT or Goulds Pumps product as a source of asbestos exposure. Our experience to date is that a majority of resolved claims are dismissed without any payment from the Company. Management believes that a large majority of the pending claims have little or no value. In addition, because claims are sometimes dismissed in large groups, the average cost per resolved claim, as well as the number of open claims, can fluctuate significantly from period to period. The average cost per resolved claim, including indemnity and defense costs, for the past three years, has been within a range of $3 to $19 thousand. ITT expects more asbestos-related suits will be filed in the future, and ITT will aggressively defend or seek a reasonable resolution, as appropriate. | ||||||||||||||||||||||||
Estimating the Liability and Related Asset | ||||||||||||||||||||||||
The Company records an asbestos liability, including legal fees, for costs estimated to be incurred to resolve all pending claims, as well as unasserted claims estimated to be filed against the Company over the next 10 years. The asbestos liability has not been discounted to present value due to an inability to reliably forecast the timing of future cash flows. The methodology used to estimate our asbestos liability for pending claims and claims estimated to be filed over the next 10 years relies on and includes the following: | ||||||||||||||||||||||||
• | interpretation of a widely accepted forecast of the population likely to have been exposed to asbestos in the workplace; | |||||||||||||||||||||||
• | widely accepted epidemiological studies estimating the number of people likely to develop mesothelioma and lung cancer from exposure to asbestos; | |||||||||||||||||||||||
• | the Company’s historical experience with the filing of non-malignant claims against it and the historical relationship between non-malignant and malignant claims filed against the Company; | |||||||||||||||||||||||
• | analysis of the number of likely asbestos personal injury claims to be filed against the Company based on such epidemiological and historical data and the Company’s recent claims experience; | |||||||||||||||||||||||
• | analysis of the Company’s pending cases, by disease type; | |||||||||||||||||||||||
• | analysis of the Company’s recent experience to determine the average settlement value of claims, by disease type; | |||||||||||||||||||||||
• | analysis of the Company's recent experience in the ratio of settled claims to total resolved claims, by disease type; | |||||||||||||||||||||||
• | analysis of the Company’s defense costs in relation to its indemnity costs; | |||||||||||||||||||||||
• | adjustment for inflation in the average settlement value of claims and defense costs estimated to be paid in the future; and | |||||||||||||||||||||||
• | analysis of the Company’s recent experience with regard to the length of time to resolve asbestos claims. | |||||||||||||||||||||||
Asbestos litigation is a unique form of litigation. Frequently, the plaintiff sues a large number of defendants and does not state a specific claim amount. After filing of the complaint, the plaintiff engages defendants in settlement negotiations to establish a settlement value based on certain criteria, including the number of defendants in the case. Rarely do the plaintiffs seek to collect all damages from one defendant. Rather, they seek to spread the liability, and thus the payments, among many defendants. As a result, the Company is unable to estimate the maximum potential exposure to pending claims and claims estimated to be filed over the next 10 years. | ||||||||||||||||||||||||
The forecast period used to estimate our potential liability to pending and projected asbestos claims is a judgment based on a number of factors, including the number and type of claims filed, recent experience with pending claims activity and whether that experience is expected to continue into the future, the jurisdictions where claims are filed, the effect of any legislative or judicial developments, and the likelihood of any comprehensive asbestos legislation at the federal level. These factors have both positive and negative effects on the dynamics of asbestos litigation in the tort system and, accordingly, our estimate of the asbestos exposure. Developments related to asbestos tend to be long-cycle, changing over multi-year periods. Accordingly, we monitor these and other factors and periodically assess whether an alternative forecast period is appropriate. | ||||||||||||||||||||||||
The Company retains a consulting firm to assist management in estimating the potential liability for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the methodology described above. Our methodology determines a point estimate based on our assessment of the value of each underlying assumption, rather than a range of reasonably possible outcomes. Projecting future asbestos costs is subject to numerous variables and uncertainties that are inherently difficult to predict. In addition to the uncertainties surrounding the key assumptions discussed above, additional uncertainty related to asbestos claims and estimated costs arises from the long latency period prior to the manifestation of an asbestos-related disease, changes in available medical treatments and changes in medical costs, changes in plaintiff behavior resulting from bankruptcies of other companies that are or could be co-defendants, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, and the impact of potential legislative or judicial changes. At December 31, 2013, approximately 35% of the recorded asbestos liability relates to pending claims, with the remainder relating to claims estimated to be filed over the next 10 years. | ||||||||||||||||||||||||
We record a corresponding asbestos-related asset that represents our best estimate of probable recoveries from our insurers for the estimated asbestos liabilities. Consistent with the asbestos liability, the asbestos-related asset has not been discounted to present value due to the inability to reliably forecast the timing of future cash flows. In developing this estimate, the Company considers coverage-in-place and other agreements with its insurers, as well as a number of additional factors. These additional factors reviewed include the financial viability of our insurance carriers and any related solvency issues, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, the extent to which settlement and defense costs will be reimbursed by the insurance policies and interpretation of the various policy and contract terms and limits and their interrelationships, and various judicial determinations relevant to our insurance programs. The timing and amount of reimbursements will vary due to a time lag between when ITT pays an amount to defend or settle a claim and when a reimbursement is received from an insurer, differing policy terms and certain gaps in our insurance coverage as a result of uninsured periods, insurer insolvencies, and prior insurance settlements. Approximately 86% of our estimated receivables are due from insurers that had credit ratings of A- or better from A.M. Best as of December 31, 2013. | ||||||||||||||||||||||||
In addition, the Company retains an insurance consulting firm to assist management in estimating probable recoveries for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the analysis of policy terms, the likelihood of recovery provided by external legal counsel, and incorporating risk mitigation judgments where policy terms or other factors are not certain. The aggregate amount of insurance available to the Company for asbestos-related claims was acquired over many years and from many different carriers. Amounts deemed not recoverable generally are due from insurers that are insolvent, or result from disagreements with the insurers over policy terms, coverage limits or coverage disputes. Such limitations in our insurance coverage are expected to result in projected payments to claimants substantially exceeding the probable insurance recovery. | ||||||||||||||||||||||||
The Company has negotiated with certain of its insurers to reimburse the Company for a portion of its indemnity and defense costs through “coverage-in-place” agreements or policy buyout agreements. The agreements are designed to facilitate the collection of ITT’s insurance portfolio, to mitigate issues that insurers may raise regarding their responsibility to respond to claims, and to promote an orderly exhaustion of the policies. These agreements, in the aggregate, represent approximately 59% of the recorded asbestos-related asset as of December 31, 2013. | ||||||||||||||||||||||||
After reviewing our portfolio of insurance policies, with consideration given to applicable deductibles, retentions and policy limits, the solvency and historical payment experience of various insurance carriers, existing insurance settlements, and the advice of outside counsel with respect to the applicable insurance coverage law relating to the terms and conditions of its insurance policies, ITT believes that its recorded receivable for insurance recoveries is probable of collection. | ||||||||||||||||||||||||
Estimating our exposure to pending asbestos claims and those that may be filed in the future is subject to significant uncertainty and risk as there are multiple variables that can affect the timing, severity, quality, quantity and resolution of claims. Any predictions with respect to the variables impacting the estimate of the asbestos liability and related asset are subject to even greater uncertainty as the projection period lengthens. In light of the uncertainties and variables inherent in the long-term projection of the Company’s asbestos exposures, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years which could be material to the financial statements, we do not believe there is a reasonable basis for estimating those costs at this time. | ||||||||||||||||||||||||
The asbestos liability and related receivables reflect management’s best estimate of future events. However, future events affecting the key factors and other variables for either the asbestos liability or the related receivables could cause actual costs or recoveries to be materially higher or lower than currently estimated. Due to these uncertainties, as well as our inability to reasonably estimate any additional asbestos liability for claims which may be filed beyond the next 10 years, it is not possible to predict the ultimate cost of resolving all pending and unasserted asbestos claims. We believe it is possible that future events affecting the key factors and other variables within the next 10 years, as well as the cost of asbestos claims filed beyond the next 10 years, net of expected recoveries, could have a material adverse effect on our financial statements. | ||||||||||||||||||||||||
Income Statement Charges | ||||||||||||||||||||||||
In the third quarter of each year, we conduct our asbestos remeasurement with the assistance of outside consultants to review and update the underlying assumptions used in our asbestos liability and related asset estimates and to determine the cost the Company estimates will be incurred to resolve all pending claims, as well as unasserted claims estimated to be filed over the next 10 years. In each remeasurement, the underlying assumptions are updated based on actual experience since the previous annual remeasurement and we reassess the appropriate reference period of years of experience used in determining each assumption and our expectations regarding future conditions, including inflation. Based on the results of the remeasurement, we decreased our estimated undiscounted asbestos liability, including legal fees, by $65.0, $75.8, and $44.1 in 2013, 2012, and 2011, respectively. | ||||||||||||||||||||||||
The decrease in our estimated liability in 2013 is a result of several developments, including an expectation of lower defense costs relative to indemnities paid over the projection period and favorable experience in the ratio of cases dismissed versus settled. These favorable impacts were offset in part by an increase in average settlement values, an increasing number of cases expected to be adjudicated, and by increased activity in several higher-cost jurisdictions. | ||||||||||||||||||||||||
The decrease in our estimated liability in 2012 is a result of several developments, including an expectation of lower defense costs as a percentage of indemnities paid over the projection period and a reduction in the assumed rate of increase in future average settlement values. These favorable factors were offset in part by an increasing number of cases expected to be adjudicated, increased activity in several higher-cost jurisdictions, an increase in average settlement values and an increase in lung cancer activity. | ||||||||||||||||||||||||
The decrease in our estimated liability in 2011 was a result of several developments; including a reduction in the assumed rate of increase in future average settlement costs and an expectation of lower defense costs as a percentage of indemnities paid. These favorable factors were offset in part by increased activity in several higher-cost jurisdictions, increasing the number of cases expected to be adjudicated. | ||||||||||||||||||||||||
Further, in the third quarters of 2013, 2012 and 2011 the Company reduced its estimated asbestos-related assets by $65.5, $78.7, and $75.8, respectively, based on the results of the remeasurement. The decrease in our asbestos-related assets is primarily the result of the decrease in the estimated liability and changes in our recovery assumptions. At each balance sheet date, ITT compares current asbestos claims and resolution activity and changes in insurer credit ratings to the results of the most recent annual remeasurement to assess whether the recorded asbestos liability and related asset remain appropriate. In addition to the charges associated with our annual measurement, we record a net asbestos charge each quarter to maintain a rolling 10-year forecast period. | ||||||||||||||||||||||||
The tables below summarize the total net asbestos charges for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Continuing operations: | ||||||||||||||||||||||||
Asbestos provision | $ | 63.3 | $ | 53.8 | $ | 59.5 | ||||||||||||||||||
Asbestos remeasurement, net | 0.5 | 2.9 | 40.9 | |||||||||||||||||||||
Settlement Agreement | (31.0 | ) | (5.8 | ) | — | |||||||||||||||||||
Net asbestos charge - continuing operations | 32.8 | 50.9 | 100.4 | |||||||||||||||||||||
Discontinued Operations: | ||||||||||||||||||||||||
Asbestos provision | — | 0.5 | 2.8 | |||||||||||||||||||||
Asbestos remeasurement, net | — | — | (9.2 | ) | ||||||||||||||||||||
Settlement Agreement | — | (5.6 | ) | — | ||||||||||||||||||||
Net asbestos charge - discontinued operations | — | (5.1 | ) | (6.4 | ) | |||||||||||||||||||
Total net asbestos charge | $ | 32.8 | $ | 45.8 | $ | 94 | ||||||||||||||||||
Changes in Financial Position | ||||||||||||||||||||||||
The following table provides a rollforward of the estimated asbestos liability and related assets for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Liability | Asset | Net | Liability | Asset | Net | |||||||||||||||||||
Balance as of January 1 | $ | 1,347.40 | $ | 607.9 | $ | 739.5 | $ | 1,667.90 | $ | 954.2 | $ | 713.7 | ||||||||||||
Changes in estimate during the period: | ||||||||||||||||||||||||
Continuing operations | 11.4 | (52.4 | ) | 63.8 | 6.6 | (50.2 | ) | 56.8 | ||||||||||||||||
Discontinued operations | — | — | — | 11.5 | 11 | 0.5 | ||||||||||||||||||
Settlement Agreement | — | 31 | (31.0 | ) | (245.2 | ) | (233.8 | ) | (11.4 | ) | ||||||||||||||
Net cash activity | (94.1 | ) | (68.7 | ) | (25.4 | ) | (93.4 | ) | (73.3 | ) | (20.1 | ) | ||||||||||||
Balance as of December 31 | $ | 1,264.70 | $ | 517.8 | $ | 746.9 | $ | 1,347.40 | $ | 607.9 | $ | 739.5 | ||||||||||||
Current portion | 85.1 | 84.5 | 92.4 | 82.6 | ||||||||||||||||||||
Noncurrent portion | 1,179.60 | 433.3 | 1,255.00 | 525.3 | ||||||||||||||||||||
2013 Settlement Agreement | ||||||||||||||||||||||||
During 2013, ITT executed a final settlement agreement (the 2013 Settlement) with an insurer to settle responsibility for multiple categories of insured claims, including pending and future product liability claims. Under the terms of the 2013 Settlement, the insurer agreed to a specified series of payments over the course of the next five years, resulting in a one-time benefit of $31.0. | ||||||||||||||||||||||||
2012 Settlement Agreement | ||||||||||||||||||||||||
In 2012, we executed an agreement (the 2012 Settlement) with the entity (the counterparty) that acquired a business disposed by ITT in 1986. The 2012 Settlement accelerates the cost sharing provisions of a previous agreement with the counterparty. Prior to executing the 2012 Settlement, claims subject to the previous cost sharing agreement where ITT was not a named defendant were excluded from the count of pending claims; however, our recorded asbestos liability included an estimate of exposure to all claims subject to the cost sharing agreement. | ||||||||||||||||||||||||
Under the terms of the 2012 Settlement, the counterparty assumed full responsibility for all pending and future asbestos-related claims filed against the disposed business, whether they were served on ITT or the counterparty. However, if the disposed business and other ITT entities were both named in a claim, ITT continues to be responsible for defending the ITT portion(s) of the claim and thus those cases remain in the Company’s count of pending claims and in our estimated asbestos liability. ITT also agreed that certain insurance rights will remain with the pending and future claims filed against the disposed business, benefiting the counterparty. | ||||||||||||||||||||||||
As a result of the 2012 Settlement, ITT’s asbestos-related liabilities were reduced by $245.2, while the asbestos-related assets were reduced by $233.8. The reduction in the asbestos liability results from eliminating the liability for all asbestos claims filed and estimated to be filed over the next 10 years against the disposed business. In addition, under the 2012 Settlement, ITT received a $10.0 cash payment from the counterparty for past and future costs which would otherwise have been paid by the surrendered insurance. Income from continuing operations reflects a benefit of $5.8 from the 2012 Settlement, while income from discontinued operations reflects a benefit of $5.6 from the 2012 Settlement. | ||||||||||||||||||||||||
Future Cash Flows: | ||||||||||||||||||||||||
We estimate that we will be able to recover approximately 41% of the asbestos indemnity and defense costs for pending claims as well as unasserted claims estimated to be filed over the next 10 years from our insurers. Actual insurance reimbursements will vary from period to period and the anticipated recovery rate is expected to decline over time due to gaps in our insurance coverage, reflecting uninsured periods, the insolvency of certain insurers, prior settlements with our insurers, and our expectation that certain insurance policies will exhaust within the next 10 years. Certain of our primary coverage-in-place agreements are exhausted or will be exhausted in the next several months, which may result in higher net cash outflows until excess carriers begin accepting claims for reimbursement. In the tenth year of our estimate, our insurance recoveries are currently projected to be 30%. Additionally, future recovery rates may be impacted by other factors, such as future insurance settlements, insolvencies, and judicial determinations relevant to our coverage program, which are difficult to predict and subject to a high degree of uncertainty. | ||||||||||||||||||||||||
Further, there is uncertainty in estimating when cash payments related to the recorded asbestos liability will be fully expended. Such cash payments will continue for a number of years beyond the next 10 years due to the significant proportion of future claims included in the estimated asbestos liability and the delay between the date a claim is filed and when it is resolved. Subject to these inherent uncertainties, it is expected that net cash payments related to pending claims and claims estimated to be filed in the next 10 years will extend through approximately 2029. | ||||||||||||||||||||||||
Annual net cash outflows, net of tax benefits, are projected to average $10 to $20 over the next five years, as compared to an annual average of $14 over the past three annual periods, and increase to an average of approximately $35 to $45 over the remainder of the projection period. | ||||||||||||||||||||||||
Environmental | ||||||||||||||||||||||||
In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and site remediation. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by ITT, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations. | ||||||||||||||||||||||||
The following table provides a rollforward of the estimated environmental liability and related assets for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Liability | Asset | Net | Liability | Asset | Net | |||||||||||||||||||
Balance as of January 1 | $ | 96.1 | $ | 12.3 | $ | 83.8 | $ | 101.8 | $ | — | $ | 101.8 | ||||||||||||
Changes in estimates for pre-existing accruals: | ||||||||||||||||||||||||
Continuing operations | 8.5 | (0.1 | ) | 8.6 | 7.1 | 10.8 | (3.7 | ) | ||||||||||||||||
Discontinued operations | 1.5 | — | 1.5 | (1.4 | ) | 1.5 | (2.9 | ) | ||||||||||||||||
Accruals added during the period for new matters | 0.5 | — | 0.5 | — | — | — | ||||||||||||||||||
Net cash activity | (12.1 | ) | (0.5 | ) | (11.6 | ) | (11.5 | ) | — | (11.5 | ) | |||||||||||||
Foreign currency | 0.1 | — | 0.1 | 0.1 | — | 0.1 | ||||||||||||||||||
Balance as of December 31 | $ | 94.6 | $ | 11.7 | $ | 82.9 | $ | 96.1 | $ | 12.3 | $ | 83.8 | ||||||||||||
The following table illustrates the reasonably possible range of estimated liability, and number of active sites for environmental matters. | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Low-end range | $ | 73.3 | $ | 76.9 | ||||||||||||||||||||
High end range | $ | 168 | $ | 167.1 | ||||||||||||||||||||
Number of active environmental investigation and remediation sites | 60 | 58 | ||||||||||||||||||||||
As actual costs incurred at identified sites in future periods may vary from our current estimates given the inherent uncertainties in evaluating environmental exposures, management believes it is possible that the outcome of these uncertainties may have a material adverse effect on our financial statements. | ||||||||||||||||||||||||
In 2012, the Company recorded a $12.3 asset related to an insurance policy that is responsive to environmental exposures. The asset reflects the Company’s best estimate of costs that are expected to be reimbursed by the insurer for past costs incurred and costs expected to be incurred in the future subject to the various policy terms and limits. The timing and amount of reimbursements will vary and may not be received in the same periods as costs are incurred. Prior to 2012, we had not recorded an asset for potential recoveries because future receipts were not considered probable due to uncertainties associated with the interpretation of policy terms, the insurer’s cost review and approval process, and the pattern of performance of the insurer. In the first half of 2012, the performance of the insurer stabilized and disagreements on coverage for certain sites were resolved with the insurer. Based on these events, combined with a longer history of experience with the insurer, the Company determined it was probable that the insurer would perform in the future in accordance with the terms of the policy and that the amount of potential recovery could be reasonably estimated. | ||||||||||||||||||||||||
Other Matters | ||||||||||||||||||||||||
The Company is involved in coverage litigation with various insurers seeking recovery of costs incurred in connection with certain environmental and product liabilities. In a suit filed in 1991, ITT Corporation, et al. v. Pacific Employers Insurance Company et al, Sup. Ct., Los Angeles County, we are seeking recovery of costs related to property damage losses due to environmental issues. Discovery, procedural matters, changes in California law, and various appeals have prolonged this case. For several years, the case was on appeal before the California Court of Appeals from a decision by the California Superior Court dismissing certain claims made by ITT. | ||||||||||||||||||||||||
On February 13, 2003, we commenced an action, Cannon Electric, Inc. v. Affiliated FM Ins. Co., Sup. Ct., Los Angeles County, seeking recovery of costs from the same coverage referenced above but related to asbestos product liability losses. During this coverage litigation, we entered into coverage-in-place settlement agreements with ACE, Wausau and Utica Mutual dated April 2004, September 2004, and February 2007, respectively. These agreements provide specific coverage for the Company’s legacy asbestos liabilities. In the first quarter of 2012, Goulds Pumps resolved its claims against Fireman’s Fund and Continental Casualty. In January 2012, ITT and Goulds Pumps filed a putative class action suit in federal Court in Connecticut against Travelers Casualty and Surety Company (ITT Corporation and Goulds Pumps Inc., v. Travelers Casualty and Surety Company (f/k/a Aetna Casualty and Surety Company), (Fed Dist Ct, CA NO.3:12-cv-00038-RN)), alleging that Travelers is unilaterally reinterpreting language contained in older Aetna policies so as to avoid paying on asbestos claims. This action was stayed pending a decision by the Superior Court of Los Angeles County in the Cannon action on interpretation of policy language. On January 29, 2014, the Superior Court issued its opinion upholding the Goulds Pumps’ claims that it is entitled to receive reimbursement from Traveler’s for asbestos claims. Goulds Pumps has filed a Motion to Lift the Stay in the Connecticut action. In 2013, the Company finalized a settlement with its insurer PEIC that resolves all outstanding issues between the Company and PEIC related to the primary policies issued by PEIC during the period from 1977 to 1985. PEIC has agreed to make structured payment overtime to a Qualified Settlement Fund (QSF) to be used for asbestos related costs. The Company continues to engage other defendants in settlement negotiations as appropriate. |
Guarantees_Indemnities_and_War
Guarantees, Indemnities and Warranties | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Guarantees [Abstract] | ' | |||||||
Guarantees, Indemnities and Warranties | ' | |||||||
GUARANTEES, INDEMNITIES AND WARRANTIES | ||||||||
Indemnities | ||||||||
As part of the Distribution, ITT provided certain indemnifications and cross-indemnifications among ITT, Exelis and Xylem, subject to limited exceptions with respect to certain employee claims and other liabilities and obligations. The indemnifications address a variety of subjects, including asserted and unasserted product liability matters (e.g., asbestos claims, product warranties) which relate to products manufactured, repaired and/or sold prior to the Distribution Date. The indemnifications are indefinite. ITT expects Exelis and Xylem to fully perform under the terms of the Distribution Agreement and therefore has not recorded a liability for matters for which we have been indemnified. In addition, both Exelis and Xylem have made asbestos indemnity claims that could give rise to material payments under the indemnity provided by ITT; such claims are included in our estimate of asbestos liabilities. | ||||||||
Since ITT’s incorporation in 1920, we have acquired and disposed of numerous entities. The related acquisition and disposition agreements contain various representation and warranty clauses and may provide indemnities for a misrepresentation or breach of the representations and warranties by either party. The indemnities address a variety of subjects; the term and monetary amounts of each such indemnity are defined in the specific agreements and may be affected by various conditions and external factors. Many of the indemnities have expired either by operation of law or as a result of the terms of the agreement. We do not have a liability recorded for these indemnifications and are not aware of any claims or other information that would give rise to material payments under such indemnities. | ||||||||
Guarantees | ||||||||
We have $131.7 of guarantees, letters of credit and similar arrangements outstanding at December 31, 2013 primarily pertaining to commercial or performance guarantees and insurance matters. We have not recorded any material loss contingencies under these guarantees, letters of credit and similar arrangements as of December 31, 2013 as the likelihood of nonperformance by ITT is considered remote. From time to time, we may provide certain third-party guarantees that may be affected by various conditions and external factors, some of which could require that payments be made under such guarantees. We do not consider the maximum exposure or current recorded liabilities under our third-party guarantees to be material either individually or in the aggregate. We do not believe such payments would have a material adverse impact on our financial statements on a consolidated basis. | ||||||||
Warranties | ||||||||
ITT warrants numerous products, the terms of which vary widely. In general, ITT warrants its products against defect and specific non-performance. In certain markets, such as automotive, aerospace and rail, liability for product defects could extend beyond the selling price of the product and could be significant if the defect interrupts production or results in a recall. The table included below provides changes in the product warranty accrual for December 31, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Warranty accrual – January 1 | $ | 28.6 | $ | 25.2 | ||||
Warranty expense | 8.6 | 10 | ||||||
Assumed in acquisition | — | 1.9 | ||||||
Payments | (8.1 | ) | (8.7 | ) | ||||
Foreign currency and other | (0.5 | ) | 0.2 | |||||
Warranty accrual – December 31 | $ | 28.6 | $ | 28.6 | ||||
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | |||||||||||||||||||||||||||||||||
The Company’s segments are reported on the same basis used internally for evaluating performance and for allocating resources. Our four reportable segments are referred to as: Industrial Process, Motion Technologies, Interconnect Solutions and Control Technologies. | |||||||||||||||||||||||||||||||||
Industrial Process manufactures engineered fluid process equipment serving a diversified mix of customers in global infrastructure industries such as oil & gas, mining, power generation, chemical and other process markets and is a provider of plant optimization and efficiency solutions and aftermarket services and parts. | |||||||||||||||||||||||||||||||||
Motion Technologies manufactures brake pads, shock absorbers and damping technologies for the global automotive, truck, trailer and public bus and rail transportation markets. | |||||||||||||||||||||||||||||||||
Interconnect Solutions manufactures a wide range of highly specialized connector products that make it possible to transfer signal and power in various electronic devices that are utilized in the aerospace and defense, industrial and transportation, oil & gas markets, and medical markets. | |||||||||||||||||||||||||||||||||
Control Technologies manufactures specialized equipment, including actuation, valves, switches, vibration isolation, custom-energy absorption, and regulators for the aerospace and defense, and industrial markets. | |||||||||||||||||||||||||||||||||
Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as asbestos and environmental liabilities, that are managed at a corporate level and are not included in segment results when evaluating performance or allocating resources. Assets of the segments exclude general corporate assets, which principally consist of cash, investments, asbestos-related receivables and certain property, plant and equipment. | |||||||||||||||||||||||||||||||||
Revenue | Operating Income (Loss) | Operating Margin | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
Industrial Process | $ | 1,107.40 | $ | 955.8 | $ | 766.7 | $ | 112 | $ | 99.3 | $ | 91.5 | 10.1 | % | 10.4 | % | 11.9 | % | |||||||||||||||
Motion Technologies | 721.8 | 626.2 | 634.4 | 100.3 | 83.1 | 85.3 | 13.9 | % | 13.3 | % | 13.4 | % | |||||||||||||||||||||
Interconnect Solutions | 395.5 | 375.7 | 417.8 | 14.2 | 6.9 | 37.8 | 3.6 | % | 1.8 | % | 9 | % | |||||||||||||||||||||
Control Technologies | 278.2 | 277.1 | 285.5 | 55.3 | 58.3 | 55.2 | 19.9 | % | 21 | % | 19.3 | % | |||||||||||||||||||||
Total segment results | 2,502.90 | 2,234.80 | 2,104.40 | 281.8 | 247.6 | 269.8 | 11.3 | % | 11.1 | % | 12.8 | % | |||||||||||||||||||||
Asbestos-related costs, net | — | — | — | (32.8 | ) | (50.9 | ) | (100.4 | ) | — | — | — | |||||||||||||||||||||
Transformation costs | — | — | — | (0.9 | ) | (8.7 | ) | (384.9 | ) | — | — | — | |||||||||||||||||||||
Eliminations / Other corporate costs | (6.0 | ) | (7.0 | ) | (18.8 | ) | (64.5 | ) | (36.5 | ) | (29.4 | ) | — | — | — | ||||||||||||||||||
Total Eliminations / Corporate and Other costs | (6.0 | ) | (7.0 | ) | (18.8 | ) | (98.2 | ) | (96.1 | ) | (514.7 | ) | — | — | — | ||||||||||||||||||
Total | $ | 2,496.90 | $ | 2,227.80 | $ | 2,085.60 | $ | 183.6 | $ | 151.5 | $ | (244.9 | ) | 7.4 | % | 6.8 | % | (11.7 | )% | ||||||||||||||
Assets | Capital | Depreciation | |||||||||||||||||||||||||||||||
Expenditures | and Amortization | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Industrial Process | $ | 1,132.70 | $ | 1,044.80 | $ | 63 | $ | 35 | $ | 25.3 | $ | 31 | $ | 17.3 | $ | 13 | |||||||||||||||||
Motion Technologies | 466.2 | 405.6 | 31.7 | 27.1 | 33.3 | 29.6 | 27.8 | 27.3 | |||||||||||||||||||||||||
Interconnect Solutions | 364.6 | 362.6 | 15.6 | 11.2 | 16.6 | 10.6 | 10 | 9.7 | |||||||||||||||||||||||||
Control Technologies | 344.7 | 347 | 5.7 | 6.1 | 5.3 | 10 | 9.3 | 10.3 | |||||||||||||||||||||||||
Corporate and Other | 1,432.00 | 1,226.10 | 6.9 | 4.4 | 21.8 | 5.7 | 6.7 | 11 | |||||||||||||||||||||||||
Total | $ | 3,740.20 | $ | 3,386.10 | $ | 122.9 | $ | 83.8 | $ | 102.3 | $ | 86.9 | $ | 71.1 | $ | 71.3 | |||||||||||||||||
Revenue(a) | |||||||||||||||||||||||||||||||||
Geographic Information | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
United States | $ | 896.2 | $ | 869.3 | $ | 779.6 | |||||||||||||||||||||||||||
Germany | 266.7 | 200.5 | 229.8 | ||||||||||||||||||||||||||||||
Other developed markets | 583.4 | 519.3 | 487.8 | ||||||||||||||||||||||||||||||
Other emerging growth markets | 750.6 | 638.7 | 588.4 | ||||||||||||||||||||||||||||||
Total | $ | 2,496.90 | $ | 2,227.80 | $ | 2,085.60 | |||||||||||||||||||||||||||
(a) | Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery. | ||||||||||||||||||||||||||||||||
Plant, Property & | |||||||||||||||||||||||||||||||||
Equipment, Net | |||||||||||||||||||||||||||||||||
Geographic Information | 2013 | 2012 | |||||||||||||||||||||||||||||||
United States | $ | 151 | $ | 127.3 | |||||||||||||||||||||||||||||
Italy | 78.7 | 78.4 | |||||||||||||||||||||||||||||||
Germany | 51.8 | 50.6 | |||||||||||||||||||||||||||||||
South Korea | 40.5 | 19.1 | |||||||||||||||||||||||||||||||
China | 31.3 | 20.5 | |||||||||||||||||||||||||||||||
Other developed markets | 22 | 21.1 | |||||||||||||||||||||||||||||||
Other emerging growth markets | 50.9 | 56.1 | |||||||||||||||||||||||||||||||
Total | $ | 426.2 | $ | 373.1 | |||||||||||||||||||||||||||||
The following table provides revenue by product category, net of intercompany balances. | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Pumps and complementary products | $ | 1,010.80 | $ | 879 | $ | 692.3 | |||||||||||||||||||||||||||
Pump support and maintenance services | 96.6 | 76.8 | 66.7 | ||||||||||||||||||||||||||||||
Friction products | 619.6 | 517.6 | 524.1 | ||||||||||||||||||||||||||||||
Shock absorber equipment | 102 | 107 | 110.3 | ||||||||||||||||||||||||||||||
Connectors equipment | 394.9 | 375.4 | 412.7 | ||||||||||||||||||||||||||||||
CT Aerospace products | 192.6 | 185.4 | 192.2 | ||||||||||||||||||||||||||||||
CT Industrial products | 80.4 | 86.6 | 87.3 | ||||||||||||||||||||||||||||||
Total | $ | 2,496.90 | $ | 2,227.80 | $ | 2,085.60 | |||||||||||||||||||||||||||
During 2013 and 2012, a single customer accounted for 10.1% and 13.4% of consolidated ITT revenue, respectively. No individual customer accounted for more than 10% of consolidated ITT revenue during 2011. |
Description_of_Business_Basis_1
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
ITT Corporation is a diversified manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Corporation and its subsidiaries. ITT operates through four segments: Industrial Process consisting of industrial pumping and complementary equipment; Motion Technologies consisting of friction and shock & vibration equipment; Interconnect Solutions (ICS) consisting of electronic connectors; and Control Technologies consisting of fluid handling, motion control and vibration and shock isolation products. Financial information for our segments is presented in Note 22, “Segment Information.” | |
Basis of Presentation | |
The Consolidated Financial Statements and Notes thereto were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities and recoveries from insurers, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. | |
Certain prior year amounts have been reclassified to conform to the current year presentation, as described within these Notes to the Consolidated Financial Statements. | |
Principles of Consolidation | ' |
Principles of Consolidation | |
Our consolidated financial statements include the accounts of all majority-owned subsidiaries. ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Statements of Operations. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal or distribution. All intercompany transactions have been eliminated. | |
Revenue Recognition | ' |
Revenue Recognition | |
Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions. | |
Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. | |
We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period. | |
For multiple deliverable arrangements, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. | |
The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied. | |
We recognize revenue on certain design and build projects using the completed contract method. Amounts invoiced to customers in excess of revenue recognized are recorded as a reduction of inventory to the extent project costs have accumulated within inventory or as deferred revenue, within accrued liabilities, until the revenue recognition criteria are satisfied. | |
During the performance of design and build arrangements, estimated final contract prices and costs are reviewed quarterly. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses are recorded as a component of costs of revenue. | |
We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. | |
Revenue is reported net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. | |
Shipping and Handling Costs | ' |
Shipping and Handling Costs | |
Shipping and handling costs are recorded as a component of costs of revenue. | |
Product Warranties | ' |
Product Warranties | |
Our standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim. | |
Asbestos-Related Liabilities and Assets | ' |
Asbestos-Related Liabilities and Assets | |
ITT has been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. | |
The Company has also recorded an asbestos-related asset, composed of insurance receivables. The asbestos-related asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers, as well as a review of expected levels of future cost recovery, the financial viability of the insurance companies, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, and interpretation of the various policy and contract terms and limits and their interrelationships. | |
In the third quarter each year we conduct an asbestos remeasurement with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions used to estimate our asbestos liability and related assets, including a reassessment of the time horizon over which a reasonable estimate of unasserted claims can be projected. In addition, as part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. Provided the quarterly review does not indicate a more detailed evaluation of our asbestos exposure is required, each quarter we record a net asbestos expense to maintain a rolling 10-year time horizon. | |
Postretirement Benefit Plans | ' |
Postretirement Benefit Plans | |
ITT sponsors pension and other employee-related defined benefit plans (collectively, postretirement benefit plans) for employees around the world. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, and age at retirement or termination. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental. The assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, and other factors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Actual results that differ from our assumptions are accumulated and are amortized over the estimated future working life, or remaining lifetime, of the plan participants depending on the nature of the retirement plan. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last 5 years. | |
The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. | |
The funded status of each plan is recorded on our balance sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through net income are recorded in accumulated other comprehensive income within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost. | |
Research and Development | ' |
Research & Development | |
Research and development (R&D) activities are charged to expense as incurred and are reported as a component of operating income within the R&D expense line. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
Stock-based awards issued to employees and non-employee directors include non-qualified stock options, restricted stock awards, restricted stock units, performance units, and certain liability-based awards. Performance units include a total shareholder return (TSR) component and a return on invested capital (ROIC) component which are accounted for as two distinct awards. Compensation costs resulting from share-based payment transactions are recognized primarily within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis. The amount of compensation recognized includes an adjustment based on an estimate of awards ultimately expected to vest. The fair value of a non-qualified stock option is determined on the date of grant using a binomial lattice pricing model incorporating multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The fair value of restricted stock awards and restricted stock units is determined using the closing price of the Company’s common stock on date of grant. The fair value of TSR equity awards is measured at grant date using a Monte Carlo simulation, measuring potential total shareholder return for ITT relative to the other companies in the S&P 400 Capital Goods Index. The fair value of the ROIC awards was based on the closing price of ITT common stock on the date of grant less the present value of expected dividend payments during the vesting period. The fair value of our liability-based awards, including cash awards under our TSR award plan, granted prior to 2013, is measured using a Monte Carlo simulation and is remeasured at the end of each reporting period. | |
Restructuring | ' |
Restructuring | |
We periodically initiate management approved restructuring activities to achieve cost savings through reduced operational redundancies and to strategically position ourselves in the market in response to prevailing economic conditions and associated customer demand. Costs associated with restructuring actions can include severance, infrastructure charges to vacate facilities or consolidate operations, contract termination costs and other related charges. For involuntary separation plans, a liability is recognized when it is probable and reasonably estimable. For voluntary separation plans, a liability is recognized when the employee irrevocably accepts the voluntary termination. For one-time termination benefits, such as additional severance pay or benefit payouts, and other exit costs, such as lease termination costs, the liability is measured and recognized initially at fair value in the period in which the liability is incurred, with subsequent changes to the liability recognized as adjustments in the period of change. Restructuring costs are presented within general and administrative expenses. | |
Income Taxes | ' |
Income Taxes | |
We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. | |
We record a valuation allowance against our deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence regarding the realizability of its deferred tax assets, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, estimated future taxable income, and whether we have a recent history of losses. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates. | |
We have not provided deferred tax liabilities for the impact of U.S. income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the U.S. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations. | |
Furthermore, we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position in consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of the proceedings (or negotiations) with the taxing authorities. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate settlement. | |
Earnings Per Share | ' |
Earnings Per Share | |
Basic earnings per common share considers the weighted average number of common shares outstanding, as well as outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock units and unvested performance stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
ITT considers all highly liquid investments purchased with an original maturity or remaining maturity at time of purchase of three months or less to be cash equivalents. Cash equivalents primarily include fixed-maturity time deposits and money market investments. We record the fixed maturity time deposits at amortized cost and accrue interest during the maturity period. | |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, investments and derivatives. We maintain cash and cash equivalents with various financial institutions located in different geographical regions, and our policy is designed to limit exposure to any individual counterparty. As part of our risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from financial instruments held at financial institutions. | |
Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. However, our largest customer represents approximately 10% of the December 31, 2013 outstanding trade accounts receivable balance. ITT performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
We determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors; including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of our customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. | |
Inventories | ' |
Inventories | |
Inventories, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value and are charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 15.3% and 16.3% of total 2013 and 2012 inventories, respectively. We have a LIFO reserve of $9.2 and $8.1 recorded as of December 31, 2013 and 2012, respectively. | |
Cost of sales is generally reported using standard cost techniques with full overhead absorption that approximates actual cost. | |
Plant, Property and Equipment | ' |
Plant, Property and Equipment | |
Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: buildings and improvements – five to 40 years, machinery and equipment – two to 10 years, furniture and office equipment – three to seven years, and other – five to 40 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Repairs and maintenance costs are expensed as incurred. | |
The Company enters into operating and capital leases for the use of premises and equipment. Rent expense related to operating lease agreements are recorded on a straight line basis, considering lease incentives and escalating rental payments. | |
Capitalized Internal Use Software | ' |
Capitalized Internal Use Software | |
Costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from three to seven years. | |
Investments | ' |
Investments | |
As of December 31, 2013 and 2012, we held investments in time deposits with a cost of $112.9 and $38.2, respectively, having an original maturity exceeding three months at the time of purchase. These investments mature within four months of the balance sheet date and have been presented in other current assets as short-term investments on the Consolidated Balance Sheet. These investments have been classified as held-to-maturity and are recorded at amortized cost, which approximates fair value at December 31, 2013 and 2012. We did not realize any gains or losses from the maturity of our investments during 2013 or 2012. Interest income recognized from these investments during 2013 or 2012 was not material to our results of operations. | |
Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of the balance sheet date. The Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $93.6 and $87.7 at December 31, 2013 and 2012, respectively. Changes in the cash surrender value during the period are recorded as a gain or loss within operating expenses and were not material in the years ended December 31, 2013, 2012 and 2011. These investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2013 and 2012 were approximately $17.5 and $17.0, respectively, however, the COLI policies do not represent a committed funding source for these obligations and as such they are subject to claims from creditors, and we can designate them for another purpose at any time. | |
Long-Lived Asset Impairment | ' |
Long-Lived Asset Impairment | |
Long-lived assets, including intangible assets with finite lives and capitalized internal use software, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. | |
Goodwill and Intangible Assets | ' |
Goodwill and Intangible Assets | |
Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of the acquired business. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are generally amortized on a straight-line basis over an estimated economic useful life, which generally range from 10-20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. | |
Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth fiscal quarter. When reviewing for impairment, we may opt to make an initial qualitative evaluation which considers present events and circumstances, to determine the likelihood of impairment. If the likelihood of impairment is not considered to be more likely than not, then no further testing is performed. For goodwill, if it is considered to be more likely than not that the asset is impaired, then a two-step quantitative impairment test is performed. In the first step, the estimated fair value of each reporting unit is compared to the carrying value of the net assets assigned to that reporting unit. If the estimated fair value of the reporting unit exceeds its carrying value, goodwill is not impaired and the second step of the impairment test is not performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded, if any. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. For indefinite-lived intangibles, if it is considered to be more likely than not that the asset is impaired, we compare the fair value of those assets to their carrying value. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. | |
We estimate the fair value of our reporting units using an income approach. Under the income approach, we estimate fair value based on the present value of estimated future cash flows. We estimate the fair value of our indefinite-lived intangible assets using the relief from royalty method. The relief from royalty method estimates the portion of a company’s earnings attributable to an intellectual property asset based on an assumed royalty rate that the company would have paid had the asset not been owned. | |
Business Combinations | ' |
Business Combinations | |
ITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill. Changes to acquisition date fair values after expiration of the measurement period are recorded in earnings. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred and the costs associated with restructuring actions initiated after the acquisition are recognized separately from the business combination. | |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
We record accruals for commitments and loss contingencies for those which are both probable and the amount can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other current information. | |
Environmental-Related Liabilities and Assets | ' |
Environmental-Related Liabilities and Assets | |
Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties. | |
During 2012, the Company established an insurance asset related to its environmental exposures. The environmental-related asset represents our best estimate of probable recoveries from third parties for costs incurred in past periods, as well as costs estimated to be incurred in future periods. In developing this estimate, the Company reviews the expected levels of future cost recovery, the financial viability of the insurance companies, the sites and claims covered by those policies, and our interpretation of the various policy and contract terms and limits. | |
Environmental costs and related recoveries are recorded within general and administrative expenses in the Consolidated Statements of Operations. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The national currencies of our foreign subsidiaries are generally the functional currencies. Balance sheet accounts are translated at the exchange rate in effect at the end of each period, except for equity which is translated at historical rates; income statement accounts are translated at the average rates of exchange prevailing during the period. Gains and losses resulting from foreign currency translation are reflected in the cumulative translation adjustments component of shareholders’ equity. | |
For foreign subsidiaries that do not use the local currency as their functional currency, foreign currency assets and liabilities are remeasured to the foreign subsidiary’s functional currency using end of period exchange rates, except for nonmonetary balance sheet accounts, which are remeasured at historical exchange rates. | |
For transactions denominated in other than the functional currency, revenue and expenses are remeasured at average exchange rates in effect during the reporting period in which the transactions occurred, except for expenses related to nonmonetary assets and liabilities. Transaction gains or losses from foreign currency remeasurement are reported in general and administrative expenses. | |
Fair Value Measurements | ' |
Fair Value Measurements | |
We determine fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We prioritize the inputs to valuation techniques used to measure fair value into three broad levels based on the observability of the lowest level input that is significant to the fair value measure. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), then to quoted market prices for similar assets or liabilities in active markets or quoted market prices of identical assets in less active markets (Level 2) and gives the lowest priority to unobservable inputs (Level 3). | |
Derivative Financial Instruments | ' |
Derivative Financial Instruments | |
ITT may use derivative financial instruments, primarily foreign currency forward contracts, to mitigate exposure from foreign currency exchange rate fluctuations as it pertains to receipts from customers, payments to suppliers and intercompany transactions. In connection with the Bornemann acquisition, we assumed certain foreign currency contracts related to forecasted transactions with third-parties. We record derivatives at their fair value as either an asset or liability and include adjustments to reflect changes in the fair value of our derivatives in earnings as the contracts are not designated as hedges. The differentials paid or received on interest rate swap agreements are recognized as adjustments to interest expense. As of December 31, 2013 and 2012, the notional amount of our foreign currency derivatives was $13.1 and $48.0, respectively, and our interest rate swaps was $11.9 and $7.9, respectively. The amount of gains and losses recorded related to our foreign currency contracts and interest rate swaps, and the net fair value of our outstanding derivative contracts was not material as of and for the years ended December 31, 2013, 2012 and 2011. | |
Derivative contracts involve the risk of non-performance by the counterparty. The fair value of our foreign currency contracts has been determined using the net position of the contracts and the applicable spot rates and forward rates as of the reporting date. | |
Recently Adopted Accounting Pronouncements | ' |
Accounting Pronouncements Not Yet Adopted | |
In July 2013, the Financial Accounting Standards Board (FASB) issued guidance eliminating diversity in practice surrounding the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The new guidance requires entities to net an unrecognized tax benefit with a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if the carryforward would be used to settle additional tax due upon disallowance of a tax position. The adoption of this amendment on January 1, 2014 is not expected to have a material effect on ITT's financial statements. | |
In March 2013, the FASB clarified that, when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. The cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The FASB also clarified that if a business combination is achieved in stages related to a previously held equity method investment (step-acquisition) that is a foreign entity, the amount of accumulated other comprehensive income that is reclassified and included in the calculation of gain or loss as of the acquisition date shall include any foreign currency translation adjustment related to that previously held investment. The adoption of these amendments on January 1, 2014 is not expected to have a material impact to ITT's financial statements. | |
In February 2013, the FASB issued guidance requiring an entity to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the amount the entity agreed to pay for the arrangement between them and the other entities that are also obligated to the liability and any additional amount the entity expects to pay on behalf of the other entities. The adoption of these amendments on January 1, 2014 is not expected to have a material impact to ITT's financial statements. |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Purchase Price Allocation | ' | |||
The final allocation of the purchase price, presented below, is based on the fair value of assets acquired, liabilities assumed and noncontrolling interests in Bornemann as of November 28, 2012. | ||||
Cash | $ | 11.9 | ||
Receivables | 29.9 | |||
Inventory | 44.7 | |||
Deferred tax assets | 14.6 | |||
Plant, property and equipment | 29.8 | |||
Goodwill | 147.3 | |||
Other intangibles | 58.7 | |||
Other assets | 9.2 | |||
Accounts payable | (9.6 | ) | ||
Accrued liabilities | (30.1 | ) | ||
Deferred revenue | (10.2 | ) | ||
Deferred tax liabilities | (23.1 | ) | ||
Short and long-term debt and capital leases | (44.4 | ) | ||
Postretirement obligations | (15.0 | ) | ||
Other liabilities | (9.3 | ) | ||
Net assets acquired | $ | 204.4 | ||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | ' | |||||||||||||||||||
Year Ended 2011 | Exelis | Xylem | Shape | Other | Total | |||||||||||||||
Cutting | ||||||||||||||||||||
Businesses | ||||||||||||||||||||
Revenue | $ | 4,916.10 | $ | 3,107.50 | $ | 33.5 | $ | — | $ | 8,057.10 | ||||||||||
Transformation costs | 31.2 | 74.8 | — | 134.1 | 240.1 | |||||||||||||||
Earnings (loss) from discontinued operations before income taxes | 473 | 321.5 | (2.5 | ) | (108.9 | ) | 683.1 | |||||||||||||
Income tax expense (benefit) | 193.6 | 70.3 | (1.1 | ) | (26.7 | ) | 236.1 | |||||||||||||
Earnings (loss) from discontinued operations, net of tax | $ | 279.4 | $ | 251.2 | $ | (1.4 | ) | $ | (82.2 | ) | $ | 447 | ||||||||
Summarized operating results from the Shape Cutting Businesses presented within earnings from discontinued operations are provided in the tables below. | ||||||||||||||||||||
Year Ended 2012 | Shape | Other | Total | |||||||||||||||||
Cutting | ||||||||||||||||||||
Businesses | ||||||||||||||||||||
Revenue | $ | 30.2 | $ | — | $ | 30.2 | ||||||||||||||
Earnings from discontinued operations before income taxes | 0.6 | 0.4 | 1 | |||||||||||||||||
Gain on sale before tax | 9 | — | 9 | |||||||||||||||||
Income tax expense (benefit) | — | (5.9 | ) | (5.9 | ) | |||||||||||||||
Earnings from discontinued operations, net of tax | $ | 9.6 | $ | 6.3 | $ | 15.9 | ||||||||||||||
Restructuring_Actions_Tables
Restructuring Actions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||
Schedule of Restructuring Costs | ' | |||||||||||
The components of all restructuring costs incurred during each of the previous three years ended are presented in the table below. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
By component: | ||||||||||||
Severance costs | $ | 22.3 | $ | 10.9 | $ | 3.5 | ||||||
Asset write-offs | 3.9 | 0.2 | — | |||||||||
Other restructuring costs | 2.2 | 2.9 | 1.2 | |||||||||
Total restructuring costs | $ | 28.4 | $ | 14 | $ | 4.7 | ||||||
By segment: | ||||||||||||
Industrial Process | $ | 4.5 | $ | 0.3 | $ | 0.4 | ||||||
Motion Technologies | 5.1 | 2.2 | — | |||||||||
Interconnect Solutions | 17.2 | 7.2 | 2.9 | |||||||||
Control Technologies | 0.4 | 0.8 | 1.4 | |||||||||
Corporate and Other | 1.2 | 3.5 | — | |||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Schedule of Restructuring Accruals | ' | |||||||||||
The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for each of the previous two years ended. | ||||||||||||
2013 | 2012 | |||||||||||
Restructuring accruals - 1/1 | $ | 7.8 | $ | 4 | ||||||||
Restructuring costs | 28.4 | 14 | ||||||||||
Cash payments | (17.1 | ) | (9.7 | ) | ||||||||
Asset write-offs | (3.9 | ) | (0.2 | ) | ||||||||
Foreign exchange translation and other | (0.5 | ) | (0.3 | ) | ||||||||
Restructuring accrual - 12/31 | $ | 14.7 | $ | 7.8 | ||||||||
By accrual type: | ||||||||||||
Severance accrual | $ | 13 | $ | 7.8 | ||||||||
Facility carrying and other costs accrual | 1.7 | — | ||||||||||
Schedule of Positions Eliminated | ' | |||||||||||
The following is a rollforward of employee position eliminations associated with restructuring activities through 2013: | ||||||||||||
2013 | 2012 | |||||||||||
Planned reductions - 1/1 | 10 | 29 | ||||||||||
Additional planned reductions | 275 | 149 | ||||||||||
Actual reductions | (178 | ) | (168 | ) | ||||||||
Planned reductions - 12/31 | 107 | 10 | ||||||||||
Interconnect Solutions [Member] | ' | |||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||
Schedule of Restructuring Accruals | ' | |||||||||||
The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions turnaround activities. | ||||||||||||
2013 | ||||||||||||
Restructuring accruals - 1/1 | $ | — | ||||||||||
Restructuring costs | 18.1 | |||||||||||
Cash payments | (6.1 | ) | ||||||||||
Asset Write-Offs | (3.9 | ) | ||||||||||
Foreign exchange translation and other | (0.1 | ) | ||||||||||
Restructuring accruals - 12/31 | $ | 8 | ||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Tax Data from Continuing Operations | ' | |||||||||||
For each of the years ended December 31, 2013, 2012, and 2011 the tax data related to continuing operations is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Income (loss) components: | ||||||||||||
United States | $ | 28.5 | $ | 33 | $ | (464.4 | ) | |||||
International | 152 | 116.1 | 148.5 | |||||||||
Income (loss) from continuing operations before income tax | 180.5 | 149.1 | (315.9 | ) | ||||||||
Income tax expense (benefit) components: | ||||||||||||
Current income tax expense (benefit): | ||||||||||||
United States – federal | 10.6 | (32.6 | ) | (78.9 | ) | |||||||
United States – state and local | 4.2 | (8.7 | ) | (12.1 | ) | |||||||
International | 39.6 | 46.8 | 49.2 | |||||||||
Total current income tax expense (benefit) | 54.4 | 5.5 | (41.8 | ) | ||||||||
Deferred income tax expense (benefit) components: | ||||||||||||
United States – federal | (331.2 | ) | 40.1 | 318.2 | ||||||||
United States – state and local | (36.7 | ) | 9.9 | (14.6 | ) | |||||||
International | 3.9 | (15.9 | ) | (1.2 | ) | |||||||
Total deferred income tax expense (benefit) | (364.0 | ) | 34.1 | 302.4 | ||||||||
Income tax expense (benefit) | $ | (309.6 | ) | $ | 39.6 | $ | 260.6 | |||||
Effective income tax rate | (171.5 | )% | 26.6 | % | (82.5 | )% | ||||||
Reconciliation of Tax Provision for Continuing Operations | ' | |||||||||||
A reconciliation of the income tax expense (benefit) for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2013, 2012, and 2011: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Tax provision at U.S. statutory rate | 35 | % | 35 | % | 35 | % | ||||||
Valuation allowance on deferred tax assets | (191.1 | ) | 27.7 | (108.1 | ) | |||||||
Tax exempt interest | (17.5 | ) | (19.7 | ) | 4.1 | |||||||
Tax on undistributed foreign earnings | 6.1 | 1.3 | (21.8 | ) | ||||||||
Foreign tax rate differential | (5.8 | ) | (3.0 | ) | 1.2 | |||||||
Audit settlements & unrecognized tax benefits | 3.8 | (13.2 | ) | — | ||||||||
U.S. permanent items | (1.3 | ) | 0.5 | — | ||||||||
U.S. tax on foreign earnings | (0.7 | ) | 0.5 | 0.4 | ||||||||
Other adjustments | (0.6 | ) | (2.8 | ) | (3.9 | ) | ||||||
State and local income tax | 0.6 | 1.4 | 0.5 | |||||||||
Medicare Part D subsidy | — | (1.1 | ) | 0.4 | ||||||||
Change in state tax rate | — | — | 9.7 | |||||||||
Effective income tax rate | (171.5 | )% | 26.6 | % | (82.5 | )% | ||||||
Deferred Tax Assets and Liabilities | ' | |||||||||||
Deferred tax assets and liabilities include the following: | ||||||||||||
2013 | 2012 | |||||||||||
Deferred Tax Assets: | ||||||||||||
Accruals | $ | 64.5 | $ | 65.2 | ||||||||
Asbestos | 272.7 | 296.7 | ||||||||||
Employee benefits | 106.6 | 137.2 | ||||||||||
Credit carryforwards | 47.2 | 46.1 | ||||||||||
Loss carryforwards | 125.2 | 119.3 | ||||||||||
Other | 34.4 | 40.1 | ||||||||||
Subtotal | 650.6 | 704.6 | ||||||||||
Valuation allowance | $ | (135.3 | ) | $ | (536.7 | ) | ||||||
Net deferred tax assets | 515.3 | 167.9 | ||||||||||
Deferred Tax Liabilities: | ||||||||||||
Undistributed earnings | (82.3 | ) | (71.4 | ) | ||||||||
Intangibles | (58.8 | ) | (59.2 | ) | ||||||||
Accelerated depreciation | (25.8 | ) | (25.0 | ) | ||||||||
Investment | (0.4 | ) | (0.7 | ) | ||||||||
Total deferred tax liabilities | $ | (167.3 | ) | $ | (156.3 | ) | ||||||
Net deferred tax assets | $ | 348 | $ | 11.6 | ||||||||
Deferred Taxes in Consolidated Balance Sheets | ' | |||||||||||
Deferred taxes are presented in the Consolidated Balance Sheets as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Current assets | $ | 59.5 | $ | 19.9 | ||||||||
Non-current assets | 303.6 | 21.4 | ||||||||||
Current liabilities | — | (3.5 | ) | |||||||||
Other non-current liabilities | (15.1 | ) | (26.2 | ) | ||||||||
Net deferred tax assets | $ | 348 | $ | 11.6 | ||||||||
Attributes Available for Utilization | ' | |||||||||||
We have the following tax attributes available for utilization at December 31, 2013: | ||||||||||||
Attribute | Amount | First Year of Expiration | ||||||||||
U.S. federal net operating losses | $ | 2.1 | 12/31/23 | |||||||||
U.S. state net operating losses | 1,348.40 | 12/31/14 | ||||||||||
U.S. federal tax credits | 39 | 12/31/20 | ||||||||||
U.S. state tax credits | 8.2 | 12/31/14 | ||||||||||
Foreign net operating losses | 281.4 | 12/31/14 | ||||||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2013, 2012, and 2011 is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Unrecognized tax benefits – January 1 | $ | 208.8 | $ | 198.7 | $ | 203.4 | ||||||
Additions for: | ||||||||||||
Prior year tax positions | 1.6 | 48.4 | 1.5 | |||||||||
Current year tax positions | 8 | 0.8 | 15.1 | |||||||||
Assumed in Acquisition | — | 3.8 | — | |||||||||
Reductions for: | ||||||||||||
Prior year tax positions | (55.4 | ) | (4.8 | ) | (21.2 | ) | ||||||
Settlements | (1.0 | ) | (33.6 | ) | — | |||||||
Expiration of Statute of Limitations | (0.8 | ) | (4.5 | ) | (0.1 | ) | ||||||
Unrecognized tax benefits – December 31 | $ | 161.2 | $ | 208.8 | $ | 198.7 | ||||||
Open Tax Years by Major Jurisdiction | ' | |||||||||||
The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2013: | ||||||||||||
Jurisdiction | Earliest | |||||||||||
Open Year | ||||||||||||
Czech Republic | 2008 | |||||||||||
Germany | 2006 | |||||||||||
Italy | 2007 | |||||||||||
Japan | 2010 | |||||||||||
Korea | 2008 | |||||||||||
United States | 2009 |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Basic and Diluted Loss Per Share | ' | |||||||||||
The following table provides a reconciliation of the data used in the calculation of basic and diluted common shares outstanding for the three years ended December 31, 2013, 2012 and 2011. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Weighted average common shares outstanding | 90.9 | 92.7 | 92.2 | |||||||||
Add: Weighted average restricted stock awards outstanding(a) | 0.1 | 0.3 | 0.6 | |||||||||
Basic weighted average common shares outstanding | 91 | 93 | 92.8 | |||||||||
Add: Dilutive impact of stock options and restricted stock units | 1.3 | 1.1 | — | |||||||||
Diluted weighted average common shares outstanding | 92.3 | 94.1 | 92.8 | |||||||||
(a) | Restricted stock awards containing rights to non-forfeitable dividends which participate in undistributed earnings with common shareholders are considered participating securities for purposes of computing earnings per share. | |||||||||||
Number of Shares Underlying Stock Options Excluded from Computation of Diluted Loss | ' | |||||||||||
The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three years ended December 31, 2013, 2012 and 2011 because they were anti-dilutive. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Anti-dilutive stock options | 0.2 | 2 | 2.1 | |||||||||
Average exercise price | $ | 26.83 | $ | 21.47 | $ | 16.7 | ||||||
Year(s) of expiration | 2023 | 2014-2022 | 2013-2022 | |||||||||
Receivables_Net_Tables
Receivables, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
Receivables, Net | ' | |||||||||||
2013 | 2012 | |||||||||||
Trade accounts receivable | $ | 463.9 | $ | 403.3 | ||||||||
Notes receivable | 6.3 | 5.6 | ||||||||||
Other | 39.1 | 44.3 | ||||||||||
Receivables, gross | 509.3 | 453.2 | ||||||||||
Less: allowance for doubtful accounts | 12.6 | 12.9 | ||||||||||
Receivables, net | $ | 496.7 | $ | 440.3 | ||||||||
Rollforward of Allowance for Doubtful Accounts | ' | |||||||||||
The following table displays a rollforward of the allowance for doubtful accounts for the years ended December 31, 2013, 2012, and 2011. | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Allowance for doubtful accounts – January 1 | $ | 12.9 | $ | 12.9 | $ | 12.6 | ||||||
Charges to income | 1.8 | 1.6 | 2.8 | |||||||||
Write-offs | (1.7 | ) | (1.6 | ) | (2.2 | ) | ||||||
Foreign currency and other | (0.4 | ) | — | (0.3 | ) | |||||||
Allowance for doubtful accounts – December 31 | $ | 12.6 | $ | 12.9 | $ | 12.9 | ||||||
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Components of Inventories, Net | ' | |||||||
2013 | 2012 | |||||||
Finished goods | $ | 49.9 | $ | 64.1 | ||||
Work in process | 94.8 | 60.5 | ||||||
Raw materials | 166.7 | 136.6 | ||||||
Inventoried costs related to long-term contracts | 85.4 | 91.7 | ||||||
Total inventory before progress payments | 396.8 | 352.9 | ||||||
Less – progress payments | (80.9 | ) | (48.7 | ) | ||||
Inventories, net | 315.9 | 304.2 | ||||||
Other_Current_and_NonCurrent_A1
Other Current and Non-Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Components of Other Current and Non-Current Assets | ' | |||||||
2013 | 2012 | |||||||
Short-term investments | $ | 112.9 | $ | 38.2 | ||||
Asbestos-related current assets | 84.5 | 82.6 | ||||||
Prepaid income tax | 23.6 | 66.7 | ||||||
Current deferred income taxes | 59.5 | 19.9 | ||||||
Other | 65.1 | 44 | ||||||
Other current assets | $ | 345.6 | $ | 251.4 | ||||
Other employee benefit-related assets | $ | 95.5 | $ | 87.7 | ||||
Capitalized software costs | 14.6 | 13.4 | ||||||
Environmental related assets | 11.7 | 12.3 | ||||||
Equity method investments | 4.7 | 8.6 | ||||||
Other | 18.4 | 29.2 | ||||||
Other non-current assets | $ | 144.9 | $ | 151.2 | ||||
Plant_Property_and_Equipment_N1
Plant, Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Components of Plant, Property and Equipment, Net | ' | |||||||
2013 | 2012 | |||||||
Land and improvements | $ | 26.8 | $ | 18 | ||||
Machinery and equipment | 834.5 | 785.4 | ||||||
Buildings and improvements | 211.6 | 184.6 | ||||||
Furniture, fixtures and office equipment | 74.6 | 69.9 | ||||||
Construction work in progress | 59.8 | 43.7 | ||||||
Other | 8.5 | 9 | ||||||
Plant, property and equipment, gross | 1,215.80 | 1,110.60 | ||||||
Less: accumulated depreciation | (789.6 | ) | (737.5 | ) | ||||
Plant, property and equipment, net | $ | 426.2 | $ | 373.1 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | ' | |||||||||||||||||||||||
Changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 by segment are as follows: | ||||||||||||||||||||||||
Industrial | Motion | Interconnect | Control | Total | ||||||||||||||||||||
Process | Technologies | Solutions | Technologies | |||||||||||||||||||||
Goodwill - December 31, 2011 | $ | 193.2 | $ | 46.9 | $ | 72.3 | $ | 185.1 | $ | 497.5 | ||||||||||||||
Goodwill acquired | 146.5 | — | — | — | 146.5 | |||||||||||||||||||
Adjustments to purchase price allocations | 2.6 | — | — | — | 2.6 | |||||||||||||||||||
Foreign currency | 3.2 | 0.9 | 0.7 | — | 4.8 | |||||||||||||||||||
Goodwill - December 31, 2012 | 345.5 | 47.8 | 73 | 185.1 | 651.4 | |||||||||||||||||||
Adjustments to purchase price allocations | 0.8 | — | — | — | 0.8 | |||||||||||||||||||
Foreign currency | 4.7 | 2 | 0.9 | — | 7.6 | |||||||||||||||||||
Goodwill - December 31, 2013 | $ | 351 | $ | 49.8 | $ | 73.9 | $ | 185.1 | $ | 659.8 | ||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||
Information regarding our other intangible assets is as follows: | ||||||||||||||||||||||||
31-Dec-13 | December 31, 2012 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Intangibles | Carrying | Amortization | Intangibles | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Customer relationships | $ | 84.9 | $ | (31.9 | ) | $ | 53 | $ | 84.7 | $ | (25.1 | ) | $ | 59.6 | ||||||||||
Proprietary technology | 30.3 | (7.6 | ) | 22.7 | 29.5 | (4.9 | ) | 24.6 | ||||||||||||||||
Patents and other | 16.4 | (13.0 | ) | 3.4 | 18 | (6.3 | ) | 11.7 | ||||||||||||||||
Finite-lived intangible total | 131.6 | (52.5 | ) | 79.1 | 132.2 | (36.3 | ) | 95.9 | ||||||||||||||||
Indefinite-lived intangibles | 27.8 | — | 27.8 | 27.4 | — | 27.4 | ||||||||||||||||||
Other Intangible Assets | $ | 159.4 | $ | (52.5 | ) | $ | 106.9 | $ | 159.6 | $ | (36.3 | ) | $ | 123.3 | ||||||||||
Estimated Amortization Expense Related to Intangible Assets | ' | |||||||||||||||||||||||
Amortization expense related to intangible assets for 2013, 2012 and 2011 was $17.6, $10.2 and $8.7, respectively. Estimated amortization expense for each of the five succeeding years is as follows: | ||||||||||||||||||||||||
Year | Estimated | |||||||||||||||||||||||
Amortization | ||||||||||||||||||||||||
Expense | ||||||||||||||||||||||||
2014 | $ | 11.8 | ||||||||||||||||||||||
2015 | 10 | |||||||||||||||||||||||
2016 | 9.5 | |||||||||||||||||||||||
2017 | 8.7 | |||||||||||||||||||||||
2018 | 7.3 | |||||||||||||||||||||||
Accrued_Liabilities_and_Other_1
Accrued Liabilities and Other Non-Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Liabilities and Other Non-Current Liabilities, Net | ' | |||||||
2013 | 2012 | |||||||
Compensation and other employee-related benefits | $ | 178.5 | $ | 147.7 | ||||
Asbestos-related liability | 85.1 | 92.4 | ||||||
Short-term loans and current maturities of long-term debt | 39.8 | 16.8 | ||||||
Accrued income taxes and other tax-related liabilities | 29.8 | 32.4 | ||||||
Customer-related liabilities | 55.6 | 54.6 | ||||||
Environmental and other legal matters | 38.5 | 38.6 | ||||||
Accrued warranty costs | 28.6 | 28.6 | ||||||
Other accrued liabilities | 44 | 47.2 | ||||||
Accrued and other current liabilities | $ | 499.9 | $ | 458.3 | ||||
Deferred income taxes and other tax-related accruals | $ | 116.2 | $ | 135.1 | ||||
Environmental liabilities | 85.1 | 84.9 | ||||||
Compensation and other employee-related benefits | 43.8 | 41.3 | ||||||
Other | 32.7 | 31 | ||||||
Other non-current liabilities | $ | 277.8 | $ | 292.3 | ||||
Leases_and_Rentals_Tables
Leases and Rentals (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Future Minimum Operating Lease Payments Under Non-Cancellable Operating Leases | ' | |||
Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2013 are shown below. | ||||
2014 | $ | 15 | ||
2015 | 13.7 | |||
2016 | 12.3 | |||
2017 | 9.9 | |||
2018 | 9.4 | |||
2019 and thereafter | 69.4 | |||
Total minimum lease payments | $ | 129.7 | ||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Outstanding Debt | ' | |||||||
2013 | 2012 | |||||||
Commercial Paper | $ | 38 | $ | — | ||||
Short-term loans | — | 12.7 | ||||||
Current maturities of long-term debt | 1.3 | 3.6 | ||||||
Current capital leases | 0.5 | 0.5 | ||||||
Short-term loans and current maturities of long-term debt | 39.8 | 16.8 | ||||||
Non-current maturities of long-term debt | 7.6 | 8.5 | ||||||
Non-current capital leases | 1.5 | 1.6 | ||||||
Long-term debt and capital leases | 9.1 | 10.1 | ||||||
Total debt and capital leases | $ | 48.9 | $ | 26.9 | ||||
Principal Payments of Debt | ' | |||||||
Principal payments over the next five years and thereafter are as follows: | ||||||||
2014 | $ | 39.8 | ||||||
2015 | 1.8 | |||||||
2016 | 1.5 | |||||||
2017 | 1.3 | |||||||
2018 | 0.9 | |||||||
Thereafter | 3.6 | |||||||
Postretirement_Benefit_Plans_T
Postretirement Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | |||||||||||||||||||||||||||||||||||
Summary of Funded Status of Postretirement Benefit Plans and Presentation of Such Balances within Consolidated Balance Sheet | ' | |||||||||||||||||||||||||||||||||||
The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Pension | Other | Total | Pension | Other | Total | |||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Fair value of plan assets | $ | 268.8 | $ | 9.2 | $ | 278 | $ | 249.1 | $ | 7.9 | $ | 257 | ||||||||||||||||||||||||
Projected benefit obligation | 366 | 166.6 | 532.6 | 387 | 213 | 600 | ||||||||||||||||||||||||||||||
Funded status | $ | (97.2 | ) | $ | (157.4 | ) | $ | (254.6 | ) | $ | (137.9 | ) | $ | (205.1 | ) | $ | (343.0 | ) | ||||||||||||||||||
Amounts reported within: | ||||||||||||||||||||||||||||||||||||
Non-current assets | $ | 1.9 | $ | — | $ | 1.9 | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Accrued liabilities | (4.8 | ) | (8.4 | ) | (13.2 | ) | (4.2 | ) | (8.5 | ) | (12.7 | ) | ||||||||||||||||||||||||
Non-current liabilities | (94.3 | ) | (149.0 | ) | (243.3 | ) | (133.7 | ) | (196.6 | ) | (330.3 | ) | ||||||||||||||||||||||||
Amount Recognized in Accumulated Other Comprehensive Income Loss | ' | |||||||||||||||||||||||||||||||||||
The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Pension | Other | Total | Pension | Other | Total | |||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 126.9 | $ | 39.4 | $ | 166.3 | $ | 175.7 | $ | 75 | $ | 250.7 | ||||||||||||||||||||||||
Prior service cost (benefit) | 2.8 | (22.2 | ) | (19.4 | ) | 4.8 | (3.7 | ) | 1.1 | |||||||||||||||||||||||||||
Total | $ | 129.7 | $ | 17.2 | $ | 146.9 | $ | 180.5 | $ | 71.3 | $ | 251.8 | ||||||||||||||||||||||||
Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans | ' | |||||||||||||||||||||||||||||||||||
The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | |||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | $ | 303.6 | $ | 83.4 | $ | 387 | $ | 277.8 | $ | 52.3 | $ | 330.1 | ||||||||||||||||||||||||
Service cost | 4.9 | 1.7 | 6.6 | 4.8 | 1 | 5.8 | ||||||||||||||||||||||||||||||
Interest cost | 12.1 | 2.5 | 14.6 | 12.9 | 2.5 | 15.4 | ||||||||||||||||||||||||||||||
Amendments | 0.1 | — | 0.1 | — | — | — | ||||||||||||||||||||||||||||||
Actuarial (gain) loss | (22.9 | ) | (1.8 | ) | (24.7 | ) | 24.2 | 14.8 | 39 | |||||||||||||||||||||||||||
Benefits and expenses paid | (16.6 | ) | (3.2 | ) | (19.8 | ) | (16.1 | ) | (3.1 | ) | (19.2 | ) | ||||||||||||||||||||||||
Assumed in acquisition | — | — | — | — | 15 | 15 | ||||||||||||||||||||||||||||||
Foreign currency translation | — | 2.2 | 2.2 | — | 0.9 | 0.9 | ||||||||||||||||||||||||||||||
Benefit obligation – December 31 | $ | 281.2 | $ | 84.8 | $ | 366 | $ | 303.6 | $ | 83.4 | $ | 387 | ||||||||||||||||||||||||
Changes in Fair Value of Plan Assets of Pension Plans | ' | |||||||||||||||||||||||||||||||||||
The following table provides a rollforward of the pension plan assets and the funded status for our U.S. and international pension plans for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | |||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||
Plan assets – January 1 | $ | 247.1 | $ | 2 | $ | 249.1 | $ | 182.3 | $ | 2 | $ | 184.3 | ||||||||||||||||||||||||
Actual return on plan assets | 35.4 | 0.1 | 35.5 | 22.6 | 0.1 | 22.7 | ||||||||||||||||||||||||||||||
Employer contributions | 0.9 | 2.8 | 3.7 | 58.3 | 3 | 61.3 | ||||||||||||||||||||||||||||||
Benefits and expenses paid | (16.6 | ) | (2.9 | ) | (19.5 | ) | (16.1 | ) | (3.1 | ) | (19.2 | ) | ||||||||||||||||||||||||
Plan assets – December 31 | $ | 266.8 | $ | 2 | $ | 268.8 | $ | 247.1 | $ | 2 | $ | 249.1 | ||||||||||||||||||||||||
Funded status at end of year | $ | (14.4 | ) | $ | (82.8 | ) | $ | (97.2 | ) | $ | (56.5 | ) | $ | (81.4 | ) | $ | (137.9 | ) | ||||||||||||||||||
Changes in Fair Value of Plan Assets of Other Employee-Related defined Benefit Plan Assets | ' | |||||||||||||||||||||||||||||||||||
The following table provides a rollforward of the other employee-related defined benefit plan assets and the funded status for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||||||
Plan assets – January 1 | $ | 7.9 | $ | 7.5 | ||||||||||||||||||||||||||||||||
Actual return on plan assets | 1.3 | 0.4 | ||||||||||||||||||||||||||||||||||
Employer contributions | 8.2 | 9.7 | ||||||||||||||||||||||||||||||||||
Benefits paid | (8.2 | ) | (9.7 | ) | ||||||||||||||||||||||||||||||||
Plan assets – December 31 | $ | 9.2 | $ | 7.9 | ||||||||||||||||||||||||||||||||
Funded status at end of year | $ | (157.4 | ) | $ | (205.1 | ) | ||||||||||||||||||||||||||||||
Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets | ' | |||||||||||||||||||||||||||||||||||
The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | 237.7 | $ | 387 | ||||||||||||||||||||||||||||||||
Accumulated benefit obligation | 234.6 | 383.7 | ||||||||||||||||||||||||||||||||||
Fair value of plan assets | 138.6 | 249.1 | ||||||||||||||||||||||||||||||||||
Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||||||||||
The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2013, 2012 and 2011 as they pertain to our defined benefit pension plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | U.S. | Int’l | Total | ||||||||||||||||||||||||||||
Net periodic postretirement cost | ||||||||||||||||||||||||||||||||||||
Service cost | $ | 4.9 | $ | 1.7 | $ | 6.6 | $ | 4.8 | $ | 1 | $ | 5.8 | $ | 5.6 | $ | 0.9 | $ | 6.5 | ||||||||||||||||||
Interest cost | 12.1 | 2.5 | 14.6 | 12.9 | 2.5 | 15.4 | 13.4 | 2.5 | 15.9 | |||||||||||||||||||||||||||
Expected return on plan assets | (19.5 | ) | (0.1 | ) | (19.6 | ) | (18.2 | ) | (0.1 | ) | (18.3 | ) | (18.9 | ) | (0.1 | ) | (19.0 | ) | ||||||||||||||||||
Amortization of net actuarial loss (gain) | 8.3 | 0.6 | 8.9 | 6.5 | (0.2 | ) | 6.3 | 3.7 | (0.1 | ) | 3.6 | |||||||||||||||||||||||||
Amortization of prior service cost | 0.8 | — | 0.8 | 0.9 | — | 0.9 | 1.2 | — | 1.2 | |||||||||||||||||||||||||||
Net periodic postretirement cost | 6.6 | 4.7 | 11.3 | 6.9 | 3.2 | 10.1 | 5 | 3.2 | 8.2 | |||||||||||||||||||||||||||
Effect of curtailment / Special termination benefit | 1.2 | — | 1.2 | — | — | — | 2.5 | — | 2.5 | |||||||||||||||||||||||||||
Total net periodic postretirement cost | 7.8 | 4.7 | 12.5 | 6.9 | 3.2 | 10.1 | 7.5 | 3.2 | 10.7 | |||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | (40.0 | ) | (1.8 | ) | (41.8 | ) | 19.8 | 14.8 | 34.6 | 51.6 | (1.1 | ) | 50.5 | |||||||||||||||||||||||
Amortization of net actuarial (loss) gain | (8.3 | ) | (0.6 | ) | (8.9 | ) | (6.5 | ) | 0.2 | (6.3 | ) | (3.7 | ) | 0.1 | (3.6 | ) | ||||||||||||||||||||
Amortization of prior service cost | (0.8 | ) | — | (0.8 | ) | (0.9 | ) | — | (0.9 | ) | (2.8 | ) | — | (2.8 | ) | |||||||||||||||||||||
Foreign currency translation | — | 0.5 | 0.5 | — | 0.4 | 0.4 | — | — | — | |||||||||||||||||||||||||||
Total change recognized in other comprehensive loss | (49.1 | ) | (1.9 | ) | (51.0 | ) | 12.4 | 15.4 | 27.8 | 45.1 | (1.0 | ) | 44.1 | |||||||||||||||||||||||
Total impact from net periodic postretirement cost and changes in other comprehensive loss | $ | (41.3 | ) | $ | 2.8 | $ | (38.5 | ) | $ | 19.3 | $ | 18.6 | $ | 37.9 | $ | 52.6 | $ | 2.2 | $ | 54.8 | ||||||||||||||||
Net Loss and Prior Service Cost that will be Amortized from Accumulated Other Comprehensive Income Loss | ' | |||||||||||||||||||||||||||||||||||
The following table provides the estimated net actuarial loss and prior service cost that is expected to be amortized from accumulated other comprehensive income into net periodic postretirement cost during 2014. | ||||||||||||||||||||||||||||||||||||
Pension | Other | Total | ||||||||||||||||||||||||||||||||||
Benefits | ||||||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 6.6 | $ | 2.3 | $ | 8.9 | ||||||||||||||||||||||||||||||
Prior service cost (credit) | 0.6 | (6.0 | ) | (5.4 | ) | |||||||||||||||||||||||||||||||
Total | $ | 7.2 | $ | (3.7 | ) | $ | 3.5 | |||||||||||||||||||||||||||||
Weighted Average Assumptions used to Determine Benefit Obligations | ' | |||||||||||||||||||||||||||||||||||
The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to our defined benefit pension plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
U.S. | Int’l | U.S. | Int’l | |||||||||||||||||||||||||||||||||
Obligation Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.8 | % | 3.2 | % | 4.1 | % | 3.1 | % | ||||||||||||||||||||||||||||
Rate of future compensation increase | N/A | 3.4 | % | N/A | 3.2 | % | ||||||||||||||||||||||||||||||
Cost Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 3.1 | % | 4.8 | % | 4.8 | % | ||||||||||||||||||||||||||||
Expected return on plan assets | 8 | % | 4.7 | % | 8 | % | 4.7 | % | ||||||||||||||||||||||||||||
Weighted Average Assumptions used to Determine Net Periodic Benefit Cost | ' | |||||||||||||||||||||||||||||||||||
The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to other employee-related defined benefit plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Obligation Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.7 | % | 4.1 | % | ||||||||||||||||||||||||||||||||
Cost Assumptions: | ||||||||||||||||||||||||||||||||||||
Discount rate | 4.1 | % | 4.8 | % | ||||||||||||||||||||||||||||||||
Expected return on plan assets | 8 | % | 8 | % | ||||||||||||||||||||||||||||||||
Actual Versus Expected Long Term Returns for Our Domestic Pension Plans | ' | |||||||||||||||||||||||||||||||||||
For postretirement plans that participate in the current master trust and participated in the master trust distributed to Exelis, the chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Expected rate of return on plan assets | 8 | % | 8 | % | 9 | % | ||||||||||||||||||||||||||||||
Actual rate of return on plan assets | 14.2 | % | 11.1 | % | (3.2 | )% | ||||||||||||||||||||||||||||||
Asset Allocation Range | ' | |||||||||||||||||||||||||||||||||||
The following table provides the allocation of plan assets held in the master investment trust by asset category, as of December 31, 2013 and 2012, and the related targeted asset allocation ranges by asset category. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | Target | ||||||||||||||||||||||||||||||||||
Allocation | ||||||||||||||||||||||||||||||||||||
Range | ||||||||||||||||||||||||||||||||||||
U.S. equities | 37 | % | 35 | % | 30-40 % | |||||||||||||||||||||||||||||||
International equities | 30 | % | 29 | % | 20-40 % | |||||||||||||||||||||||||||||||
Fixed income | 32 | % | 35 | % | 25-45 % | |||||||||||||||||||||||||||||||
Cash and other | 1 | % | 1 | % | 0-5 % | |||||||||||||||||||||||||||||||
Fair Value of Plan Assets Held by Our Postretirement Benefits Plans | ' | |||||||||||||||||||||||||||||||||||
The following table provides the fair value of plan assets held by our postretirement benefit plans, at December 31, 2013 and 2012, by asset class. | ||||||||||||||||||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||||||||||||||||||
2013 | Total | Level 2 | Total | Level 3 | ||||||||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||||||
U.S. | $ | 98.2 | $ | 98.2 | $ | — | $ | — | ||||||||||||||||||||||||||||
International | 56.6 | 56.6 | — | — | ||||||||||||||||||||||||||||||||
Emerging Markets | 25.5 | 25.5 | — | — | ||||||||||||||||||||||||||||||||
Fixed income | 85 | 85 | 9.2 | 9.2 | ||||||||||||||||||||||||||||||||
Cash and other | 3.5 | 3.5 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 268.8 | $ | 268.8 | $ | 9.2 | $ | 9.2 | ||||||||||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||||||||||||||||||
2012 | Total | Level 2 | Total | Level 3 | ||||||||||||||||||||||||||||||||
Equities: | ||||||||||||||||||||||||||||||||||||
U.S. | $ | 86.9 | $ | 86.9 | $ | — | $ | — | ||||||||||||||||||||||||||||
International | 46 | 46 | — | — | ||||||||||||||||||||||||||||||||
Emerging Markets | 26.2 | 26.2 | — | — | ||||||||||||||||||||||||||||||||
Fixed income | 86.1 | 86.1 | 7.9 | 7.9 | ||||||||||||||||||||||||||||||||
Cash and other | 3.9 | 3.9 | — | — | ||||||||||||||||||||||||||||||||
Total | $ | 249.1 | $ | 249.1 | $ | 7.9 | $ | 7.9 | ||||||||||||||||||||||||||||
Estimated Future Benefit Payments | ' | |||||||||||||||||||||||||||||||||||
The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans. | ||||||||||||||||||||||||||||||||||||
U.S. | Int’l | Other | ||||||||||||||||||||||||||||||||||
Pension | Pension | Benefits | ||||||||||||||||||||||||||||||||||
2014 | $ | 16.3 | $ | 5 | $ | 10.5 | ||||||||||||||||||||||||||||||
2015 | 16.7 | 4.2 | 10.7 | |||||||||||||||||||||||||||||||||
2016 | 17.2 | 4 | 10.9 | |||||||||||||||||||||||||||||||||
2017 | 17.7 | 4.3 | 11 | |||||||||||||||||||||||||||||||||
2018 | 18.1 | 4.1 | 11 | |||||||||||||||||||||||||||||||||
2019 – 2022 | 95.4 | 22.1 | 53.2 | |||||||||||||||||||||||||||||||||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | |||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | |||||||||||||||||||||||||||||||||||
Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans | ' | |||||||||||||||||||||||||||||||||||
The following table provides a rollforward of the projected benefit obligations for our other employee-related defined benefit plans for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | $ | 213 | $ | 191.8 | ||||||||||||||||||||||||||||||||
Service cost | 2.9 | 2.5 | ||||||||||||||||||||||||||||||||||
Interest cost | 8.3 | 9.5 | ||||||||||||||||||||||||||||||||||
Amendments | (19.0 | ) | (3.1 | ) | ||||||||||||||||||||||||||||||||
Actuarial (gain) loss | (30.4 | ) | 22 | |||||||||||||||||||||||||||||||||
Benefits paid | (8.2 | ) | (9.7 | ) | ||||||||||||||||||||||||||||||||
Benefit obligation – December 31 | $ | 166.6 | $ | 213 | ||||||||||||||||||||||||||||||||
Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||||||||||
The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2013, 2012 and 2011 as they pertain to other employee-related defined benefit plans. | ||||||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||||||
Net periodic postretirement cost | ||||||||||||||||||||||||||||||||||||
Service cost | $ | 2.9 | $ | 2.5 | $ | 1.8 | ||||||||||||||||||||||||||||||
Interest cost | 8.3 | 9.5 | 9.5 | |||||||||||||||||||||||||||||||||
Expected return on plan assets | (0.6 | ) | (0.5 | ) | (0.6 | ) | ||||||||||||||||||||||||||||||
Amortization of net actuarial loss | 4.3 | 4.6 | 2.6 | |||||||||||||||||||||||||||||||||
Amortization of prior service credit | (0.4 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||||||||||||||||||
Total net periodic postretirement cost | 14.5 | 16 | 13.2 | |||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ||||||||||||||||||||||||||||||||||||
Net actuarial (gain) loss | (31.1 | ) | 22.1 | 14.5 | ||||||||||||||||||||||||||||||||
Prior service credit | (19.0 | ) | (3.1 | ) | — | |||||||||||||||||||||||||||||||
Amortization of net actuarial loss | (4.3 | ) | (4.6 | ) | (2.6 | ) | ||||||||||||||||||||||||||||||
Amortization of prior service credit | 0.4 | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||
Total changes recognized in other comprehensive loss | (54.0 | ) | 14.5 | 12 | ||||||||||||||||||||||||||||||||
Total impact from net periodic postretirement cost and changes in other comprehensive loss | $ | (39.5 | ) | $ | 30.5 | $ | 25.2 | |||||||||||||||||||||||||||||
LongTerm_Incentive_Employee_Co1
Long-Term Incentive Employee Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||
Long-Term Incentive Employee Compensation Costs | ' | ||||||||||||||||||||||||||
Long-term incentive employee compensation costs are primarily recorded within general and administrative expenses, and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows: | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Share-based compensation expense, equity-based awards | $ | 13.3 | $ | 12.9 | $ | 23.3 | |||||||||||||||||||||
Share-based compensation expense, liability-based awards | 3.8 | 1.9 | 2.1 | ||||||||||||||||||||||||
Total share-based compensation expense in operating income (loss)(a) | $ | 17.1 | $ | 14.8 | $ | 25.4 | |||||||||||||||||||||
(a) | Share-based compensation expense incurred during 2013, 2012, and 2011 includes $0.2, $0.5 and $4.7, respectively, classified as a transformation cost in the Consolidated Statements of Operations related to the modification of equity awards. Also, included in 2011 is $8.3 of accelerated expense recognition primarily related to the retirement of Steven R. Loranger, our former Chairman, President and Chief Executive Officer. | ||||||||||||||||||||||||||
Status of Stock Option and Restricted Stock Shares | ' | ||||||||||||||||||||||||||
A summary of the status of our NQOs as of December 31, 2013, 2012 and 2011 and changes during the years then ended is presented below. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Stock Options | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||||
Outstanding – January 1 | 4.3 | $ | 18.46 | 8 | $ | 16.7 | 3.7 | $ | 85.08 | ||||||||||||||||||
Granted | 0.4 | 26.82 | 0.4 | 22.8 | 0.3 | 115.36 | |||||||||||||||||||||
Exercised | (1.9 | ) | 17.37 | (3.8 | ) | 15.35 | (0.7 | ) | 76.27 | ||||||||||||||||||
Cancelled or expired | (0.1 | ) | 16.15 | (0.3 | ) | 17.21 | (1.3 | ) | (b) | 92.76 | |||||||||||||||||
Outstanding on Distribution Date before Equitable Adjustment | — | — | — | — | 2 | 88.52 | |||||||||||||||||||||
Outstanding on Distribution Date after Equitable Adjustment | — | — | — | — | 8 | 16.18 | |||||||||||||||||||||
November/December 2011 Activity: | |||||||||||||||||||||||||||
Granted | — | — | — | — | 0.7 | 20.28 | |||||||||||||||||||||
Exercised | — | — | — | — | (0.7 | ) | 13.87 | ||||||||||||||||||||
Outstanding – December 31 | 2.7 | $ | 20.46 | 4.3 | $ | 18.46 | 8 | $ | 16.7 | ||||||||||||||||||
Options exercisable – December 31 | 1.5 | $ | 18.34 | 2.9 | $ | 17.1 | 6.3 | $ | 16.03 | ||||||||||||||||||
(b) | Includes 1.2 shares cancelled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average exercise price of $92.20. | ||||||||||||||||||||||||||
Share-Based Compensation Summary of Stock Options | ' | ||||||||||||||||||||||||||
The following table summarizes information about ITT’s stock options at December 31, 2013: | |||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||
Range of | Number | Weighted | Weighted | Aggregate | Number | Weighted | Weighted | Aggregate | |||||||||||||||||||
Exercise | Average | Average | Intrinsic | Average | Average | Intrinsic | |||||||||||||||||||||
Prices | Remaining | Exercise | Value | Remaining | Exercise | Value | |||||||||||||||||||||
Contractual Life | Price | Contractual Life | Price | ||||||||||||||||||||||||
(in years) | (in years) | ||||||||||||||||||||||||||
$12-$15 | 0.5 | 1.1 | $ | 13.19 | $ | 14 | 0.5 | 1.1 | $ | 13.19 | $ | 14 | |||||||||||||||
$15-$20 | 0.4 | 4.5 | 19.92 | 9.7 | 0.4 | 4.5 | 19.92 | 9.7 | |||||||||||||||||||
$20-$25 | 1.4 | 7.1 | 21.39 | 31.9 | 0.6 | 6.1 | 20.94 | 15 | |||||||||||||||||||
$25-$30 | 0.4 | 9.2 | 26.82 | 5.8 | — | — | — | — | |||||||||||||||||||
2.7 | 6 | $ | 20.46 | $ | 61.4 | 1.5 | 4.2 | $ | 18.34 | $ | 38.7 | ||||||||||||||||
Weighted Average Assumptions | ' | ||||||||||||||||||||||||||
The following are weighted-average assumptions for 2013, 2012 and 2011: | |||||||||||||||||||||||||||
2013 | 2012 | November 7, | 2011 | ||||||||||||||||||||||||
2011 Grants | Grants Before | ||||||||||||||||||||||||||
Distribution | |||||||||||||||||||||||||||
Dividend yield | 1.5 | % | 1.6 | % | 1.8 | % | 1.7 | % | |||||||||||||||||||
Expected volatility | 29.9 | % | 34.1 | % | 39.3 | % | 24.7 | % | |||||||||||||||||||
Expected life (in years) | 6.4 | 6.9 | 7 | 7 | |||||||||||||||||||||||
Risk-free rates | 1.1 | % | 1.4 | % | 1.5 | % | 3.1 | % | |||||||||||||||||||
Weighted-average grant date fair value | $ | 6.62 | $ | 6.71 | $ | 6.97 | $ | 29.7 | |||||||||||||||||||
Rollforward of Outstanding Restricted Stock | ' | ||||||||||||||||||||||||||
The table below provides a rollforward of outstanding RSUs, PSUs, and RSAs for each of the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Restricted Stock and | Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||
Performance Units | Average Grant | Average Grant | Average | ||||||||||||||||||||||||
Date Fair Value | Date Fair | Grant Date | |||||||||||||||||||||||||
Value | Fair Value | ||||||||||||||||||||||||||
Outstanding – January 1 | 1.2 | $ | 21.06 | 1.4 | $ | 18.55 | 0.9 | $ | 89.7 | ||||||||||||||||||
Granted | 0.6 | 28.16 | 0.4 | 22.56 | 0.3 | 115.18 | |||||||||||||||||||||
Lapsed | (0.4 | ) | 20.25 | (0.5 | ) | 15.21 | (0.3 | ) | 99.53 | ||||||||||||||||||
Canceled | (0.1 | ) | 22.68 | (0.1 | ) | 20.58 | (0.6 | ) | (c) | 95.3 | |||||||||||||||||
Outstanding on Distribution Date before equitable adjustment | — | — | — | — | 0.3 | 93.42 | |||||||||||||||||||||
Outstanding on Distribution Date after equitable adjustment | — | — | — | — | 1 | 17.94 | |||||||||||||||||||||
November/December 2011 Activity: | |||||||||||||||||||||||||||
Granted | — | — | — | — | 0.4 | 20.27 | |||||||||||||||||||||
Outstanding – December 31 | 1.3 | $ | 24.17 | 1.2 | $ | 21.06 | 1.4 | $ | 18.55 | ||||||||||||||||||
(c) | Includes a total of 0.5 RSUs and RSAs canceled in connection with the Distribution of Exelis and Xylem, with a corresponding weighted average grant date fair value of $95.14. | ||||||||||||||||||||||||||
Number of Outstanding Equity Settled RSUs, Cash Settled RSUs and RSAs | ' | ||||||||||||||||||||||||||
The table below provides the number of the outstanding equity settled RSUs, PSU's, RSA's and cash settled RSUs as of December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
Equity settled RSUs | 1 | 0.9 | 0.8 | ||||||||||||||||||||||||
Cash settled RSUs | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||
PSUs | 0.2 | — | — | ||||||||||||||||||||||||
RSAs | — | 0.2 | 0.5 | ||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||||||
Activity Related to Asbestos Claims | ' | |||||||||||||||||||||||
As of December 31, 2013, there were 61 thousand pending active claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: | ||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Pending claims – Beginning | 96 | 105 | 104 | |||||||||||||||||||||
New claims | 5 | 4 | 5 | |||||||||||||||||||||
Settlements | (3 | ) | (1 | ) | (2 | ) | ||||||||||||||||||
Dismissals(a) | (19 | ) | (12 | ) | (2 | ) | ||||||||||||||||||
Pending claims – Ending | 79 | 96 | 105 | |||||||||||||||||||||
Pending inactive claims(a) | 18 | 29 | 39 | |||||||||||||||||||||
Pending active claims | 61 | 67 | 66 | |||||||||||||||||||||
(a) | The 2013, 2012, and the 2011 dismissals reported in the table above include the dismissal of approximately 12 thousand ,12 thousand, and 10 thousand claims respectively, which were considered pending inactive claims. Inactive claims represent pending claims in Mississippi filed prior to 2004, which have been excluded from our asbestos measurement because the plaintiffs cannot demonstrate a significant compensable loss. As such, management believes these claims have little to no value. | |||||||||||||||||||||||
Summary of Net Asbestos Charges | ' | |||||||||||||||||||||||
The tables below summarize the total net asbestos charges for the years ended December 31, 2013, 2012 and 2011. | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Continuing operations: | ||||||||||||||||||||||||
Asbestos provision | $ | 63.3 | $ | 53.8 | $ | 59.5 | ||||||||||||||||||
Asbestos remeasurement, net | 0.5 | 2.9 | 40.9 | |||||||||||||||||||||
Settlement Agreement | (31.0 | ) | (5.8 | ) | — | |||||||||||||||||||
Net asbestos charge - continuing operations | 32.8 | 50.9 | 100.4 | |||||||||||||||||||||
Discontinued Operations: | ||||||||||||||||||||||||
Asbestos provision | — | 0.5 | 2.8 | |||||||||||||||||||||
Asbestos remeasurement, net | — | — | (9.2 | ) | ||||||||||||||||||||
Settlement Agreement | — | (5.6 | ) | — | ||||||||||||||||||||
Net asbestos charge - discontinued operations | — | (5.1 | ) | (6.4 | ) | |||||||||||||||||||
Total net asbestos charge | $ | 32.8 | $ | 45.8 | $ | 94 | ||||||||||||||||||
Roll Forward of Asbestos Liability and Related Assets | ' | |||||||||||||||||||||||
The following table provides a rollforward of the estimated asbestos liability and related assets for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Liability | Asset | Net | Liability | Asset | Net | |||||||||||||||||||
Balance as of January 1 | $ | 1,347.40 | $ | 607.9 | $ | 739.5 | $ | 1,667.90 | $ | 954.2 | $ | 713.7 | ||||||||||||
Changes in estimate during the period: | ||||||||||||||||||||||||
Continuing operations | 11.4 | (52.4 | ) | 63.8 | 6.6 | (50.2 | ) | 56.8 | ||||||||||||||||
Discontinued operations | — | — | — | 11.5 | 11 | 0.5 | ||||||||||||||||||
Settlement Agreement | — | 31 | (31.0 | ) | (245.2 | ) | (233.8 | ) | (11.4 | ) | ||||||||||||||
Net cash activity | (94.1 | ) | (68.7 | ) | (25.4 | ) | (93.4 | ) | (73.3 | ) | (20.1 | ) | ||||||||||||
Balance as of December 31 | $ | 1,264.70 | $ | 517.8 | $ | 746.9 | $ | 1,347.40 | $ | 607.9 | $ | 739.5 | ||||||||||||
Current portion | 85.1 | 84.5 | 92.4 | 82.6 | ||||||||||||||||||||
Noncurrent portion | 1,179.60 | 433.3 | 1,255.00 | 525.3 | ||||||||||||||||||||
Rollforward of Environmental Liability and Related Assets Table | ' | |||||||||||||||||||||||
The following table provides a rollforward of the estimated environmental liability and related assets for the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Liability | Asset | Net | Liability | Asset | Net | |||||||||||||||||||
Balance as of January 1 | $ | 96.1 | $ | 12.3 | $ | 83.8 | $ | 101.8 | $ | — | $ | 101.8 | ||||||||||||
Changes in estimates for pre-existing accruals: | ||||||||||||||||||||||||
Continuing operations | 8.5 | (0.1 | ) | 8.6 | 7.1 | 10.8 | (3.7 | ) | ||||||||||||||||
Discontinued operations | 1.5 | — | 1.5 | (1.4 | ) | 1.5 | (2.9 | ) | ||||||||||||||||
Accruals added during the period for new matters | 0.5 | — | 0.5 | — | — | — | ||||||||||||||||||
Net cash activity | (12.1 | ) | (0.5 | ) | (11.6 | ) | (11.5 | ) | — | (11.5 | ) | |||||||||||||
Foreign currency | 0.1 | — | 0.1 | 0.1 | — | 0.1 | ||||||||||||||||||
Balance as of December 31 | $ | 94.6 | $ | 11.7 | $ | 82.9 | $ | 96.1 | $ | 12.3 | $ | 83.8 | ||||||||||||
Range of Environmental Liability and Number of Active Sites for Environmental Matters | ' | |||||||||||||||||||||||
The following table illustrates the reasonably possible range of estimated liability, and number of active sites for environmental matters. | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
Low-end range | $ | 73.3 | $ | 76.9 | ||||||||||||||||||||
High end range | $ | 168 | $ | 167.1 | ||||||||||||||||||||
Number of active environmental investigation and remediation sites | 60 | 58 | ||||||||||||||||||||||
Guarantees_Indemnities_and_War1
Guarantees, Indemnities and Warranties (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Guarantees [Abstract] | ' | |||||||
Changes in Product Warranty Accrual | ' | |||||||
The table included below provides changes in the product warranty accrual for December 31, 2013 and 2012. | ||||||||
2013 | 2012 | |||||||
Warranty accrual – January 1 | $ | 28.6 | $ | 25.2 | ||||
Warranty expense | 8.6 | 10 | ||||||
Assumed in acquisition | — | 1.9 | ||||||
Payments | (8.1 | ) | (8.7 | ) | ||||
Foreign currency and other | (0.5 | ) | 0.2 | |||||
Warranty accrual – December 31 | $ | 28.6 | $ | 28.6 | ||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Revenue by Reporting Segments | ' | ||||||||||||||||||||||||||||||||
Revenue | Operating Income (Loss) | Operating Margin | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||
Industrial Process | $ | 1,107.40 | $ | 955.8 | $ | 766.7 | $ | 112 | $ | 99.3 | $ | 91.5 | 10.1 | % | 10.4 | % | 11.9 | % | |||||||||||||||
Motion Technologies | 721.8 | 626.2 | 634.4 | 100.3 | 83.1 | 85.3 | 13.9 | % | 13.3 | % | 13.4 | % | |||||||||||||||||||||
Interconnect Solutions | 395.5 | 375.7 | 417.8 | 14.2 | 6.9 | 37.8 | 3.6 | % | 1.8 | % | 9 | % | |||||||||||||||||||||
Control Technologies | 278.2 | 277.1 | 285.5 | 55.3 | 58.3 | 55.2 | 19.9 | % | 21 | % | 19.3 | % | |||||||||||||||||||||
Total segment results | 2,502.90 | 2,234.80 | 2,104.40 | 281.8 | 247.6 | 269.8 | 11.3 | % | 11.1 | % | 12.8 | % | |||||||||||||||||||||
Asbestos-related costs, net | — | — | — | (32.8 | ) | (50.9 | ) | (100.4 | ) | — | — | — | |||||||||||||||||||||
Transformation costs | — | — | — | (0.9 | ) | (8.7 | ) | (384.9 | ) | — | — | — | |||||||||||||||||||||
Eliminations / Other corporate costs | (6.0 | ) | (7.0 | ) | (18.8 | ) | (64.5 | ) | (36.5 | ) | (29.4 | ) | — | — | — | ||||||||||||||||||
Total Eliminations / Corporate and Other costs | (6.0 | ) | (7.0 | ) | (18.8 | ) | (98.2 | ) | (96.1 | ) | (514.7 | ) | — | — | — | ||||||||||||||||||
Total | $ | 2,496.90 | $ | 2,227.80 | $ | 2,085.60 | $ | 183.6 | $ | 151.5 | $ | (244.9 | ) | 7.4 | % | 6.8 | % | (11.7 | )% | ||||||||||||||
Schedule of Segment Reporting Information | ' | ||||||||||||||||||||||||||||||||
Assets | Capital | Depreciation | |||||||||||||||||||||||||||||||
Expenditures | and Amortization | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Industrial Process | $ | 1,132.70 | $ | 1,044.80 | $ | 63 | $ | 35 | $ | 25.3 | $ | 31 | $ | 17.3 | $ | 13 | |||||||||||||||||
Motion Technologies | 466.2 | 405.6 | 31.7 | 27.1 | 33.3 | 29.6 | 27.8 | 27.3 | |||||||||||||||||||||||||
Interconnect Solutions | 364.6 | 362.6 | 15.6 | 11.2 | 16.6 | 10.6 | 10 | 9.7 | |||||||||||||||||||||||||
Control Technologies | 344.7 | 347 | 5.7 | 6.1 | 5.3 | 10 | 9.3 | 10.3 | |||||||||||||||||||||||||
Corporate and Other | 1,432.00 | 1,226.10 | 6.9 | 4.4 | 21.8 | 5.7 | 6.7 | 11 | |||||||||||||||||||||||||
Total | $ | 3,740.20 | $ | 3,386.10 | $ | 122.9 | $ | 83.8 | $ | 102.3 | $ | 86.9 | $ | 71.1 | $ | 71.3 | |||||||||||||||||
Business Segment Information by Geographical Information | ' | ||||||||||||||||||||||||||||||||
Revenue(a) | |||||||||||||||||||||||||||||||||
Geographic Information | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||||||
United States | $ | 896.2 | $ | 869.3 | $ | 779.6 | |||||||||||||||||||||||||||
Germany | 266.7 | 200.5 | 229.8 | ||||||||||||||||||||||||||||||
Other developed markets | 583.4 | 519.3 | 487.8 | ||||||||||||||||||||||||||||||
Other emerging growth markets | 750.6 | 638.7 | 588.4 | ||||||||||||||||||||||||||||||
Total | $ | 2,496.90 | $ | 2,227.80 | $ | 2,085.60 | |||||||||||||||||||||||||||
(a) | Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery. | ||||||||||||||||||||||||||||||||
Schedule of PP&E by Geographic Region | ' | ||||||||||||||||||||||||||||||||
Plant, Property & | |||||||||||||||||||||||||||||||||
Equipment, Net | |||||||||||||||||||||||||||||||||
Geographic Information | 2013 | 2012 | |||||||||||||||||||||||||||||||
United States | $ | 151 | $ | 127.3 | |||||||||||||||||||||||||||||
Italy | 78.7 | 78.4 | |||||||||||||||||||||||||||||||
Germany | 51.8 | 50.6 | |||||||||||||||||||||||||||||||
South Korea | 40.5 | 19.1 | |||||||||||||||||||||||||||||||
China | 31.3 | 20.5 | |||||||||||||||||||||||||||||||
Other developed markets | 22 | 21.1 | |||||||||||||||||||||||||||||||
Other emerging growth markets | 50.9 | 56.1 | |||||||||||||||||||||||||||||||
Total | $ | 426.2 | $ | 373.1 | |||||||||||||||||||||||||||||
Revenue by Product Category, Net of Intercompany Balances | ' | ||||||||||||||||||||||||||||||||
The following table provides revenue by product category, net of intercompany balances. | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
Pumps and complementary products | $ | 1,010.80 | $ | 879 | $ | 692.3 | |||||||||||||||||||||||||||
Pump support and maintenance services | 96.6 | 76.8 | 66.7 | ||||||||||||||||||||||||||||||
Friction products | 619.6 | 517.6 | 524.1 | ||||||||||||||||||||||||||||||
Shock absorber equipment | 102 | 107 | 110.3 | ||||||||||||||||||||||||||||||
Connectors equipment | 394.9 | 375.4 | 412.7 | ||||||||||||||||||||||||||||||
CT Aerospace products | 192.6 | 185.4 | 192.2 | ||||||||||||||||||||||||||||||
CT Industrial products | 80.4 | 86.6 | 87.3 | ||||||||||||||||||||||||||||||
Total | $ | 2,496.90 | $ | 2,227.80 | $ | 2,085.60 | |||||||||||||||||||||||||||
Description_of_Business_Basis_2
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Asbestos liability and related asset measurement period | '10 years | ' |
Measurement date to calculate long term expected return plan asset | '5 years | ' |
Share-based compensation costs period | '3 years | ' |
Minimum percentage of realized ultimate settlement | 50.00% | ' |
Maximum maturities period to consider investment as cash equivalent | '3 months | ' |
Percentage of LIFO inventory as compare to total inventory | 15.30% | 16.30% |
LIFO inventory reserve amount recorded | $9.20 | $8.10 |
Short-term investments | 112.9 | 38.2 |
Maturities of time deposits, description | 'original maturity exceeding three months at the time of purchase. These investments mature within four months of the balance sheet date and have been presented in other current assets as short-term investments on the Consolidated Balance Sheet | ' |
Other employee benefit-related assets | 93.6 | 87.7 |
Investments for utilizing as long term funding source for deferred compensation obligations | 17.5 | 17 |
Acquisition measurement period | '12 months | ' |
Minimum [Member] | Building and improvements [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '5 years | ' |
Minimum [Member] | Machinery and equipment [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '2 years | ' |
Minimum [Member] | Furniture and office equipment [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '3 years | ' |
Minimum [Member] | Other plant, property and equipment [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '5 years | ' |
Minimum [Member] | Software [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Intangible assets with a finite life amortized on a straight-line basis estimated useful life | '3 years | ' |
Minimum [Member] | Intangible assets with a finite life amortized on a straight-line basis [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Intangible assets with a finite life amortized on a straight-line basis estimated useful life | '10 years | ' |
Maximum [Member] | Building and improvements [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '40 years | ' |
Maximum [Member] | Machinery and equipment [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '10 years | ' |
Maximum [Member] | Furniture and office equipment [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '7 years | ' |
Maximum [Member] | Other plant, property and equipment [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Plant, property and equipment estimated useful life | '40 years | ' |
Maximum [Member] | Software [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Intangible assets with a finite life amortized on a straight-line basis estimated useful life | '7 years | ' |
Maximum [Member] | Intangible assets with a finite life amortized on a straight-line basis [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Intangible assets with a finite life amortized on a straight-line basis estimated useful life | '20 years | ' |
Foreign Exchange Contract [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Derivative, Notional Amount | 13.1 | 48 |
Interest Rate Swap [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Derivative, Notional Amount | $11.90 | $7.90 |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' |
Organization And Summary Of Significant Accounting Policies [Line Items] | ' | ' |
Concentration Risk, Percentage | 10.00% | ' |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | Dec. 31, 2011 | Nov. 28, 2012 | Nov. 28, 2012 |
In Millions, unless otherwise specified | Bornemann [Member] | Bornemann [Member] | |
Employees | Employees | ||
Business Acquisition [Line Items] | ' | ' | ' |
Purchase price of issued and outstanding stock, net of cash acquired | ' | $192.50 | ' |
Number of employees | ' | 550 | 550 |
Acquisition date | ' | ' | 28-Nov-12 |
Costs related to acquisition | $15.60 | ' | ' |
Acquisitions_Schedule_of_Purch
Acquisitions - Schedule of Purchase Price Allocation (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 28, 2012 |
In Millions, unless otherwise specified | Bornemann [Member] | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash | ' | ' | ' | $11.90 |
Receivables | ' | ' | ' | 29.9 |
Inventory | ' | ' | ' | 44.7 |
Deferred tax assets | ' | ' | ' | 14.6 |
Plant, property and equipment | ' | ' | ' | 29.8 |
Goodwill | 659.8 | 651.4 | 497.5 | 147.3 |
Other intangibles | ' | ' | ' | 58.7 |
Other assets | ' | ' | ' | 9.2 |
Accounts payable | ' | ' | ' | -9.6 |
Accrued liabilities | ' | ' | ' | -30.1 |
Deferred revenue | ' | ' | ' | -10.2 |
Deferred tax liabilities | ' | ' | ' | -23.1 |
Short and long-term debt and capital leases | ' | ' | ' | -44.4 |
Postretirement obligations | ' | ' | ' | -15 |
Other liabilities | ' | ' | ' | -9.3 |
Net assets acquired | ' | ' | ' | $204.40 |
Discontinued_Operations_Additi
Discontinued Operations - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 2 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 13, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Shape Cutting Businesses [Member] | Shape Cutting Businesses [Member] | Shape Cutting Businesses [Member] | Exelis [Member] | Xylem [Member] | Xylem and Exelis [Member] | Xylem and Exelis [Member] | Xylem and Exelis [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings from discontinued operations, net of tax | $0.80 | $15.90 | $447 | ' | $9.60 | ($1.40) | $279.40 | $251.20 | ' | ' | ' |
Loss due to settlement of a Legacy discontinued operations business | 1.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of segment | ' | ' | ' | 38.4 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from contribution from subsidiaries | 0 | 0 | 1,671 | ' | ' | ' | 683 | 988 | ' | ' | ' |
Percentage share of contingent liabilities | ' | ' | 21.00% | ' | ' | ' | 39.00% | 40.00% | ' | ' | ' |
Net Tax Related Liability Due to Exelis and Xylem in the Aggregate | 0 | 0.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution of Exelis and Xylem - Retained Earnings, TAX FILING ADJUSTMENT | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Percentage of Escalation Over Cost | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Period for Providing Transition Period | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum period for providing transition period | '24 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings from discontinued operations before income taxes | ' | ' | ' | ' | 0.6 | -2.5 | 473 | 321.5 | ' | 6.7 | 10.7 |
Billings under transition service agreement, total | ' | ' | ' | ' | ' | ' | ' | ' | 22 | ' | ' |
Amount receivable associated with transactions related to transition services agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.8 | 1.3 |
Amount payable associated with transactions related to the transition services agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.10 | $0.10 |
Discontinued_Operations_Result
Discontinued Operations - Results of Discontinued Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Earnings (loss) from discontinued operations, net of tax | $0.80 | $15.90 | $447 |
Exelis [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | ' | ' | 4,916.10 |
Transformation costs | ' | ' | 31.2 |
Earnings from discontinued operations before income taxes | ' | ' | 473 |
Income tax expense (benefit) | ' | ' | 193.6 |
Earnings (loss) from discontinued operations, net of tax | ' | ' | 279.4 |
Xylem [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | ' | ' | 3,107.50 |
Transformation costs | ' | ' | 74.8 |
Earnings from discontinued operations before income taxes | ' | ' | 321.5 |
Income tax expense (benefit) | ' | ' | 70.3 |
Earnings (loss) from discontinued operations, net of tax | ' | ' | 251.2 |
Shape Cutting Businesses [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | ' | 30.2 | 33.5 |
Transformation costs | ' | ' | 0 |
Earnings from discontinued operations before income taxes | ' | 0.6 | -2.5 |
Gain on sale before tax | ' | 9 | ' |
Income tax expense (benefit) | ' | 0 | -1.1 |
Earnings (loss) from discontinued operations, net of tax | ' | 9.6 | -1.4 |
Other [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | ' | 0 | 0 |
Transformation costs | ' | ' | 134.1 |
Earnings from discontinued operations before income taxes | ' | 0.4 | -108.9 |
Gain on sale before tax | ' | 0 | ' |
Income tax expense (benefit) | ' | -5.9 | -26.7 |
Earnings (loss) from discontinued operations, net of tax | ' | 6.3 | -82.2 |
Discontinued Operations [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Revenue | ' | 30.2 | 8,057.10 |
Transformation costs | ' | ' | 240.1 |
Earnings from discontinued operations before income taxes | ' | 1 | 683.1 |
Gain on sale before tax | ' | 9 | ' |
Income tax expense (benefit) | ' | -5.9 | 236.1 |
Earnings (loss) from discontinued operations, net of tax | ' | $15.90 | $447 |
Restructuring_Actions_Schedule
Restructuring Actions - Schedule of Restructuring Costs (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Severance costs | $22.30 | $10.90 | $3.50 |
Asset write-offs | 3.9 | 0.2 | 0 |
Other restructuring costs | 2.2 | 2.9 | 1.2 |
Total restructuring costs | 28.4 | 14 | 4.7 |
Industrial Process [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring costs | 4.5 | 0.3 | 0.4 |
Motion Technologies [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring costs | 5.1 | 2.2 | 0 |
Interconnect Solutions [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring costs | 17.2 | 7.2 | 2.9 |
Control Technologies [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring costs | 0.4 | 0.8 | 1.4 |
Corporate and Other [Member] | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Total restructuring costs | $1.20 | $3.50 | $0 |
Restructuring_Actions_Addition
Restructuring Actions - Additional Information (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Employees | Employees | |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Number of positions eliminated | 178 | 168 |
Expected restructuring costs remaining | $20 | ' |
Interconnect Solutions [Member] | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' |
Number of positions eliminated | 180 | ' |
Restructuring_Actions_Schedule1
Restructuring Actions - Schedule of Positions Eliminated (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employees | Employees | |
Restructuring and Related Activities [Abstract] | ' | ' |
Planned reductions, beginning balance | 10 | 29 |
Additional planned reductions | 275 | 149 |
Actual reductions | -178 | -168 |
Planned reductions, ending balance | 107 | 10 |
Restructuring_Actions_Schedule2
Restructuring Actions - Schedule of Restructuring Reserve (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring accrual, beginning balance | $7.80 | $4 | ' |
Restructuring costs | 28.4 | 14 | 4.7 |
Cash payments | -17.1 | -9.7 | ' |
Asset write-offs | -3.9 | -0.2 | 0 |
Foreign exchange translation and other | -0.5 | -0.3 | ' |
Restructuring accrual, ending balance | 14.7 | 7.8 | 4 |
Severance accrual [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring accrual, ending balance | 13 | 7.8 | ' |
Facility carrying and other costs accrual [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring accrual, ending balance | 1.7 | 0 | ' |
Interconnect Solutions [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring costs | 17.2 | 7.2 | 2.9 |
Interconnect Solutions [Member] | Interconnect Solutions Turnaround Activities [Member] | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' |
Restructuring accrual, beginning balance | 0 | ' | ' |
Restructuring costs | 18.1 | ' | ' |
Cash payments | -6.1 | ' | ' |
Asset write-offs | -3.9 | ' | ' |
Foreign exchange translation and other | -0.1 | ' | ' |
Restructuring accrual, ending balance | $8 | ' | ' |
Company_Transformation_Additio
Company Transformation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring and Related Activities [Abstract] | ' | ' | ' |
Transformation costs before income tax expense | $2.20 | $20.80 | $636.20 |
Transformation costs from continuing operations, before tax | $2.20 | $13 | $396.10 |
Income_Taxes_Income_Tax_Data_f
Income Taxes - Income Tax Data from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (loss) components: | ' | ' | ' |
United States | $28.50 | $33 | ($464.40) |
International | 152 | 116.1 | 148.5 |
Income (loss) from continuing operations before income tax | 180.5 | 149.1 | -315.9 |
Current income tax expense (benefit): | ' | ' | ' |
United States - federal | 10.6 | -32.6 | -78.9 |
United States - state and local | 4.2 | -8.7 | -12.1 |
International | 39.6 | 46.8 | 49.2 |
Total current income tax expense (benefit) | 54.4 | 5.5 | -41.8 |
Deferred income tax expense (benefit) components: | ' | ' | ' |
United States - federal | -331.2 | 40.1 | 318.2 |
United States - state and local | -36.7 | 9.9 | -14.6 |
International | 3.9 | -15.9 | -1.2 |
Total deferred income tax expense (benefit) | -364 | 34.1 | 302.4 |
Income tax expense (benefit) | ($309.60) | $39.60 | $260.60 |
Effective income tax rate | -171.50% | 26.60% | -82.50% |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Tax Provision for Continuing Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax provision at U.S. statutory rate | 35.00% | 35.00% | 35.00% |
Valuation allowance on deferred tax assets | -191.10% | 27.70% | -108.10% |
Tax exempt interest | -17.50% | -19.70% | 4.10% |
Tax on undistributed foreign earnings | 6.10% | 1.30% | -21.80% |
Foreign tax rate differential | -5.80% | -3.00% | 1.20% |
Audit settlements & unrecognized tax benefits | 3.80% | -13.20% | 0.00% |
U.S. permanent items | -1.30% | 0.50% | 0.00% |
U.S. tax on foreign earnings | -0.70% | 0.50% | 0.40% |
Other adjustments | -0.60% | -2.80% | -3.90% |
State and local income tax | 0.60% | 1.40% | 0.50% |
Medicare Part D subsidy | 0.00% | -1.10% | 0.40% |
Change in state tax rate | 0.00% | 0.00% | 9.70% |
Effective income tax rate | -171.50% | 26.60% | -82.50% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Unrecognized tax benefits would affect the effective tax rate | $5.90 | ' | ' |
Additional deferred tax liability | 11 | ' | ' |
Deferred taxes not provided for excess of financial reporting over tax basis of investments in foreign subsidiaries | 506.6 | ' | ' |
Income Tax Holiday, Aggregate Dollar Amount | 1.8 | ' | ' |
Income Tax Holiday, Income Tax Benefits Per Share | $0.02 | ' | ' |
Deferred income tax benefit | -309.6 | 39.6 | 260.6 |
Net operating loss carryforwards in Luxembourg | 166.4 | ' | ' |
Excess income tax benefit from stock-based compensation | 8.7 | 6.4 | ' |
The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement | 'The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | ' | ' |
Estimated change in unrecognized tax benefits | 87.9 | ' | ' |
Interest (income) expense related to tax matters | 2 | -3.9 | ' |
Interest accrued from income tax examinations | 17.5 | 13.6 | ' |
Continuing Operations [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Unrecognized tax benefits would affect the effective tax rate | 53.4 | ' | ' |
Discontinuing Operations [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Unrecognized tax benefits would affect the effective tax rate | 57.6 | ' | ' |
U.S. Deferred Tax Assets [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Deferred income tax benefit | 374.6 | ' | ' |
Foreign net operating losses [Member] | ' | ' | ' |
Tax Credit Carryforward [Line Items] | ' | ' | ' |
Decrease in valuation allowance | $29 | ' | ' |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Tax Assets: | ' | ' |
Accruals | $64.50 | $65.20 |
Asbestos | 272.7 | 296.7 |
Employee benefits | 106.6 | 137.2 |
Credit carryforwards | 47.2 | 46.1 |
Loss carryforwards | 125.2 | 119.3 |
Other | 34.4 | 40.1 |
Subtotal | 650.6 | 704.6 |
Valuation allowance | -135.3 | -536.7 |
Net deferred tax assets | 515.3 | 167.9 |
Deferred Tax Liabilities: | ' | ' |
Undistributed earnings | -82.3 | -71.4 |
Intangibles | -58.8 | -59.2 |
Accelerated depreciation | -25.8 | -25 |
Investment | -0.4 | -0.7 |
Total deferred tax liabilities | -167.3 | -156.3 |
Net deferred tax assets | $348 | $11.60 |
Income_Taxes_Deferred_Taxes_in
Income Taxes - Deferred Taxes in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Current assets | $59.50 | $19.90 |
Non-current assets | 303.6 | 21.4 |
Current liabilities | 0 | -3.5 |
Other non-current liabilities | -15.1 | -26.2 |
Net deferred tax assets | $348 | $11.60 |
Income_Taxes_Attributes_Availa
Income Taxes - Attributes Available for Utilization (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
U.S. federal net operating losses [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Attribute amount | $2.10 |
First year of expiration | '2023 |
U.S. state net operating losses [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Attribute amount | 1,348.40 |
First year of expiration | '2014 |
U.S. federal tax credits [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Attribute amount | 39 |
First year of expiration | '2020 |
U.S. state tax credits [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Attribute amount | 8.2 |
First year of expiration | '2014 |
Foreign net operating losses [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Attribute amount | $281.40 |
First year of expiration | '2014 |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Unrecognized tax benefits - January 1 | $208.80 | $198.70 | $203.40 |
Additions for: | ' | ' | ' |
Prior year tax positions | 1.6 | 48.4 | 1.5 |
Current year tax positions | 8 | 0.8 | 15.1 |
Assumed in acquisition | 0 | 3.8 | 0 |
Reductions for: | ' | ' | ' |
Prior year tax positions | -55.4 | -4.8 | -21.2 |
Settlements | -1 | -33.6 | 0 |
Lapse of statute | -0.8 | -4.5 | -0.1 |
Unrecognized tax benefits - December 31 | $161.20 | $208.80 | $198.70 |
Income_Taxes_Open_Tax_Years_by
Income Taxes - Open Tax Years by Major Jurisdiction (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Czech Republic [Member] | ' |
Open Tax Years By Major Jurisdiction [Line Items] | ' |
Open tax years by major jurisdiction | '2008 |
Germany [Member] | ' |
Open Tax Years By Major Jurisdiction [Line Items] | ' |
Open tax years by major jurisdiction | '2006 |
Italy [Member] | ' |
Open Tax Years By Major Jurisdiction [Line Items] | ' |
Open tax years by major jurisdiction | '2007 |
Japan [Member] | ' |
Open Tax Years By Major Jurisdiction [Line Items] | ' |
Open tax years by major jurisdiction | '2010 |
Korea [Member] | ' |
Open Tax Years By Major Jurisdiction [Line Items] | ' |
Open tax years by major jurisdiction | '2008 |
United States [Member] | ' |
Open Tax Years By Major Jurisdiction [Line Items] | ' |
Open tax years by major jurisdiction | '2009 |
Earnings_Per_Share_Basic_and_D
Earnings Per Share - Basic and Diluted Loss Per Share (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Weighted average common shares outstanding | 90.9 | 92.7 | 92.2 |
Add: Weighted average restricted stock awards outstanding | 0.1 | 0.3 | 0.6 |
Basic weighted average common shares outstanding | 91 | 93 | 92.8 |
Add: Dilutive impact of stock options | 1.3 | 1.1 | 0 |
Diluted weighted average common shares outstanding | 92.3 | 94.1 | 92.8 |
Earnings_Per_Share_Number_of_S
Earnings Per Share - Number of Shares Underlying Stock Options Excluded from Computation of Diluted Loss (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive stock options | 0.2 | 2 | 2.1 |
Average exercise price | $26.83 | $21.47 | $16.70 |
Performance Shares [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Anti-dilutive stock options | 0.1 | ' | ' |
Minimum [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Years of expiration | '2023 | '2014 | '2013 |
Maximum [Member] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Years of expiration | '2023 | '2022 | '2022 |
Receivables_Net_Receivables_Ne
Receivables, Net - Receivables, Net (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2010 |
Receivables [Abstract] | ' | ' | ' | ' |
Trade accounts receivable | $403.30 | $463.90 | ' | ' |
Notes receivable | 5.6 | 6.3 | ' | ' |
Other | 44.3 | 39.1 | ' | ' |
Receivables, gross | 453.2 | 509.3 | ' | ' |
Less: allowance for doubtful accounts | 12.9 | 12.6 | 12.9 | 12.6 |
Receivables, net | 440.3 | 496.7 | ' | ' |
Reclassification of receivables related to progress billings | $6.40 | ' | ' | ' |
Receivables_Net_Rollforward_of
Receivables, Net - Rollforward of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for Doubtful Accounts Receivable [Roll Forward] | ' | ' | ' |
Allowance for doubtful accounts - January 1 | $12.90 | $12.90 | $12.60 |
Charges to income | 1.8 | 1.6 | 2.8 |
Write-offs | -1.7 | -1.6 | -2.2 |
Foreign currency and other | -0.4 | 0 | -0.3 |
Allowance for doubtful accounts - December 31 | $12.60 | $12.90 | $12.90 |
Inventories_Net_Components_of_
Inventories, Net - Components of Inventories, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $49.90 | $64.10 |
Work in process | 94.8 | 60.5 |
Raw materials | 166.7 | 136.6 |
Inventoried costs related to long-term contracts | 85.4 | 91.7 |
Total inventory before progress payments | 396.8 | 352.9 |
Less - progress payments | -80.9 | -48.7 |
Inventories, net | $315.90 | $304.20 |
Other_Current_and_NonCurrent_A2
Other Current and Non-Current Assets - Components of Other Current and Non-Current Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Short-term investments | $112.90 | $38.20 |
Asbestos-related current assets | 84.5 | 82.6 |
Prepaid income tax | 23.6 | 66.7 |
Current deferred income taxes | 59.5 | 19.9 |
Other | 65.1 | 44 |
Other current assets | 345.6 | 251.4 |
Other employee benefit-related assets | 95.5 | 87.7 |
Capitalized software costs | 14.6 | 13.4 |
Environmental related assets | 11.7 | 12.3 |
Equity method investments | 4.7 | 8.6 |
Other | 18.4 | 29.2 |
Other non-current assets | $144.90 | $151.20 |
Plant_Property_and_Equipment_N2
Plant, Property and Equipment, Net - Components of Plant, Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Land and improvements | $26.80 | $18 |
Machinery and equipment | 834.5 | 785.4 |
Buildings and improvements | 211.6 | 184.6 |
Furniture, fixtures and office equipment | 74.6 | 69.9 |
Construction work in progress | 59.8 | 43.7 |
Other | 8.5 | 9 |
Plant, property and equipment, gross | 1,215.80 | 1,110.60 |
Less - accumulated depreciation | -789.6 | -737.5 |
Plant, property and equipment, net | $426.20 | $373.10 |
Plant_Property_and_Equipment_N3
Plant, Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Abstract] | ' | ' | ' |
Recognized depreciation expense | $63.40 | $54.60 | $56.40 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets, Net - Changes in Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Goodwill , beginning balance | $651.40 | $497.50 |
Goodwill acquired | ' | 146.5 |
Adjustments to purchase price allocations | 0.8 | 2.6 |
Foreign currency | 7.6 | 4.8 |
Goodwill , ending Balance | 659.8 | 651.4 |
Industrial Process [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill , beginning balance | 345.5 | 193.2 |
Goodwill acquired | ' | 146.5 |
Adjustments to purchase price allocations | 0.8 | 2.6 |
Foreign currency | 4.7 | 3.2 |
Goodwill , ending Balance | 351 | 345.5 |
Motion Technologies [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill , beginning balance | 47.8 | 46.9 |
Goodwill acquired | ' | 0 |
Adjustments to purchase price allocations | 0 | 0 |
Foreign currency | 2 | 0.9 |
Goodwill , ending Balance | 49.8 | 47.8 |
Interconnect Solutions [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill , beginning balance | 73 | 72.3 |
Goodwill acquired | ' | 0 |
Adjustments to purchase price allocations | 0 | 0 |
Foreign currency | 0.9 | 0.7 |
Goodwill , ending Balance | 73.9 | 73 |
Control Technologies [Member] | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Goodwill , beginning balance | 185.1 | 185.1 |
Goodwill acquired | ' | 0 |
Adjustments to purchase price allocations | 0 | 0 |
Foreign currency | 0 | 0 |
Goodwill , ending Balance | $185.10 | $185.10 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Adjustments to purchase price allocations | $800,000 | $2,600,000 | ' |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 0 | 0 | ' |
Amortization expense related to finite-lived intangible assets | 17,600,000 | 10,200,000 | 8,700,000 |
Customer relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted average period (in years) | '13 years 7 months 6 days | ' | ' |
Proprietary technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted average period (in years) | '12 years 3 months 18 days | ' | ' |
Patents [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Weighted average period (in years) | '11 years 4 months 7 days | ' | ' |
Bornemann [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Adjustments to purchase price allocations | 800,000 | ' | ' |
Proceeds from previous acquisition | 700,000 | ' | ' |
Bornemann [Member] | Trademarks [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets acquired | ' | 11,400,000 | ' |
Bornemann [Member] | Customer relationships [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets acquired | ' | 17,600,000 | ' |
Weighted average period (in years) | ' | '9 years 7 months 6 days | ' |
Bornemann [Member] | Proprietary technology [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Intangible assets acquired | ' | 17,100,000 | ' |
Weighted average period (in years) | ' | '12 years 2 months 6 days | ' |
Shape Cutting Businesses [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Goodwill disposed off | ' | $12,900,000 | ' |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets, Net - Other Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, gross | $131.60 | $132.20 |
Accumulated amortization | -52.5 | -36.3 |
Finite-live intangible asset, net | 79.1 | 95.9 |
Indefinite-lived intangible assets, gross/net carrying amount | 27.8 | 27.4 |
Other intangible assets | 159.4 | 159.6 |
Other intangible assets, net | 106.9 | 123.3 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, gross | 84.9 | 84.7 |
Accumulated amortization | -31.9 | -25.1 |
Finite-live intangible asset, net | 53 | 59.6 |
Proprietary technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, gross | 30.3 | 29.5 |
Accumulated amortization | -7.6 | -4.9 |
Finite-live intangible asset, net | 22.7 | 24.6 |
Patents and other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-lived intangible assets, gross | 16.4 | 18 |
Accumulated amortization | -13 | -6.3 |
Finite-live intangible asset, net | $3.40 | $11.70 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets, Net - Estimated Amortization Expense Related to Intangible Assets (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2014 | $11.80 |
2015 | 10 |
2016 | 9.5 |
2017 | 8.7 |
2018 | $7.30 |
Accrued_Liabilities_and_Other_2
Accrued Liabilities and Other Non-Current Liabilities - Accrued Liabilities and Other Non-Current Liabilities, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Compensation and other employee-related benefits | $178.50 | $147.70 |
Asbestos-related liability | 85.1 | 92.4 |
Short-term loans and current maturities of long-term debt | 39.8 | 16.8 |
Accrued income taxes and other tax-related liabilities | 29.8 | 32.4 |
Customer-related liabilities | 55.6 | 54.6 |
Environmental and other legal matters | 38.5 | 38.6 |
Accrued warranty costs | 28.6 | 28.6 |
Other accrued liabilities | 44 | 47.2 |
Accrued and other current liabilities | 499.9 | 458.3 |
Deferred income taxes and other tax-related accruals | 116.2 | 135.1 |
Environmental liabilities | 85.1 | 84.9 |
Compensation and other employee-related benefits | 43.8 | 41.3 |
Other | 32.7 | 31 |
Other non-current liabilities | $277.80 | $292.30 |
Leases_and_Rentals_Additional_
Leases and Rentals - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases [Abstract] | ' | ' | ' |
Rental expenses under operating leases | $14.70 | $14.30 | $15.30 |
Leases_and_Rentals_Future_Mini
Leases and Rentals - Future Minimum Operating Lease Payments Under Non-Cancellable Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Leases [Abstract] | ' |
2014 | $15 |
2015 | 13.7 |
2016 | 12.3 |
2017 | 9.9 |
2018 | 9.4 |
2019 and thereafter | 69.4 |
Total minimum lease payments | $129.70 |
Debt_Outstanding_Debt_Detail
Debt - Outstanding Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Commercial Paper | $38 | $0 |
Short-term loans | 0 | 12.7 |
Current maturities of long-term debt | 1.3 | 3.6 |
Current capital leases | 0.5 | 0.5 |
Short-term loans and current maturities of long-term debt | 39.8 | 16.8 |
Non-current maturities of long-term debt | 7.6 | 8.5 |
Non-current capital leases | 1.5 | 1.6 |
Long-term debt and capital leases | 9.1 | 10.1 |
Total debt and capital leases | $48.90 | $26.90 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 10 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 24, 2011 | Oct. 26, 2011 | Oct. 24, 2011 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | |
Office | Revolving Credit Facility Due August 2013 [Member] | ITT 2011 Revolving Credit Agreement [Member] | ITT 2011 Revolving Credit Agreement [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Commercial Paper [Member] | |||
swap | ||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.44% |
Long term debt interest rate, minimum | 4.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long term debt interest rate, maximum | 5.40% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets pledged as collateral | $10,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of interest rate swaps outstanding | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | ' | ' | ' | 11,900,000 | 7,900,000 | ' |
Fair value of interest rate swaps | ' | ' | ' | ' | ' | ' | ' | 600,000 | ' | ' |
Previously outstanding credit facility | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' | ' | ' |
Maturity period of revolving credit facility | ' | ' | ' | ' | '4 years | '3 years | ' | ' | ' | ' |
Extension period of revolving credit facility | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | ' | ' | 500,000,000 | ' | ' | ' | ' | ' |
Maximum face amount outstanding on letters of credit | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' |
Minimum amount of reduce commitments | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Maximum potential increase in credit facility | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' |
Maximum potential credit facility outstanding | ' | ' | ' | ' | 700,000,000 | ' | ' | ' | ' | ' |
Minimum voluntary prepayment Permissible under facility | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' |
Interest rate over federal funds effective rate | ' | ' | ' | ' | 0.05% | ' | ' | ' | ' | ' |
Period of LIBOR Rate | ' | ' | ' | ' | '1 month | ' | ' | ' | ' | ' |
Interest rate over statutory reserve requirement | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' |
Revolving credit facility, amount outstanding | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum Leverage Ratio Under Credit Facility | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Minimum leverage ratio under credit facility | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Maximum interest coverage ratio under credit facility | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' |
Minimum interest coverage ratio under credit facility | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' |
Extinguishment of debt | ' | ' | 1,251,000,000 | ' | ' | ' | ' | ' | ' | ' |
Loss on debt extinguishment | ' | ' | 324,900,000 | ' | ' | ' | ' | ' | ' | ' |
Gains recognized on previously deferred gain on terminated interest rate swap | ' | ' | ' | ' | ' | ' | 42,900,000 | ' | ' | ' |
Expense recognized from previously deferred debt issuance costs and unamortized debt discounts | ' | ' | 6,100,000 | ' | ' | ' | ' | ' | ' | ' |
Termination of capital lease | ' | ' | $4,600,000 | ' | ' | ' | ' | ' | ' | ' |
Number of manufacturing and office facilities included in leased property | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Principal_Payments_of_Deb
Debt - Principal Payments of Debt (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $39.80 |
2015 | 1.8 |
2016 | 1.5 |
2017 | 1.3 |
2018 | 0.9 |
Thereafter | $3.60 |
Postretirement_Benefit_Plans_A
Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 2 Months Ended | 12 Months Ended | |||||||||||||||||
Share data in Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Feb. 21, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 |
Participant | Subsequent Event [Member] | Maximum [Member] | Minimum [Member] | Defined Contribution Plans [Member] | Defined Contribution Plans [Member] | Defined Contribution Plans [Member] | ITT Pension Plan for Bargaining Unit Employees Seneca Falls [Member] | ITT Consolidated Hourly Pension Plan [Member] | Other Non Qualified Us Plan [Member] | International Pension Plan [Member] | International Pension Plan [Member] | International Pension Plan [Member] | U.S. Pension Plans [Member] | U.S. Pension Plans [Member] | U.S. Pension Plans [Member] | Pre-age 65 retirees [Member] | Post-age 65 retirees [Member] | |||
Maximum [Member] | Minimum [Member] | |||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions made to pension plans | $15,300,000 | $13,500,000 | $8,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company contribution percentage of base pay prior to enhancement | ' | ' | ' | ' | ' | ' | 3.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company contribution percentage of base pay post enhancement | ' | ' | ' | ' | ' | ' | ' | 7.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of distribution | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of transition credit | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock fund held approximately | 0.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Active participants in numerous defined benefit pension plans | 2,400 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Projected Benefit Obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 38.00% | 4.00% | 23.00% | ' | ' | ' | ' | ' | ' | ' |
Amendments | 23,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | 100,000 | 0 | ' | ' | ' |
Effect of curtailment / Special termination benefit | -1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | 1,200,000 | 0 | 2,500,000 | ' | ' |
Company contribution, percentage pay match | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated benefit obligation | 363,000,000 | 383,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employees related expenses in SRP | ' | ' | 15.3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturities period corporate bonds | ' | ' | ' | ' | '30 years | '0 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term annual rate of return for domestic pension plans | 8.00% | 8.00% | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.70% | 4.70% | ' | 8.00% | 8.00% | ' | ' | ' |
Assumed rate of future increase in per capita cost of health care for 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 6.30% |
Assumed rate of future decrease in per capita cost of health care for 2021 | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of one percent increase on benefit obligation | 18,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of one percent increase on annual service and interest cost components | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of one percent decrease on benefit obligation | 15,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of one percent decrease on annual service and interest cost components | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign government plan assets | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contributions to postretirement plans | 11,900,000 | 71,000,000 | 30,800,000 | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000 | 58,300,000 | ' | ' | ' |
Expected contributions during 2014 | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | $16,300,000 | ' | ' | ' | ' |
Postretirement_Benefit_Plans_S
Postretirement Benefit Plans - Summary of Funded Status of Postretirement Benefit Plans and Presentation of Such Balances within Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | $278 | $257 | ' |
Projected benefit obligation | 532.6 | 600 | ' |
Funded status | -254.6 | -343 | ' |
Amounts reported within: | ' | ' | ' |
Non-current assets | 1.9 | 0 | ' |
Accrued liabilities | -13.2 | -12.7 | ' |
Non-current liabilities | -243.3 | -330.3 | ' |
Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 268.8 | 249.1 | 184.3 |
Projected benefit obligation | 366 | 387 | 330.1 |
Funded status | -97.2 | -137.9 | ' |
Amounts reported within: | ' | ' | ' |
Non-current assets | 1.9 | 0 | ' |
Accrued liabilities | -4.8 | -4.2 | ' |
Non-current liabilities | -94.3 | -133.7 | ' |
Others Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan assets | 9.2 | 7.9 | 7.5 |
Projected benefit obligation | 166.6 | 213 | 191.8 |
Funded status | -157.4 | -205.1 | ' |
Amounts reported within: | ' | ' | ' |
Non-current assets | 0 | 0 | ' |
Accrued liabilities | -8.4 | -8.5 | ' |
Non-current liabilities | ($149) | ($196.60) | ' |
Postretirement_Benefit_Plans_A1
Postretirement Benefit Plans - Amount Recognized in Accumulated Other Comprehensive Income Loss (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial loss | $166.30 | $250.70 |
Prior service cost (benefit) | -19.4 | 1.1 |
Total | 146.9 | 251.8 |
Pension [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial loss | 126.9 | 175.7 |
Prior service cost (benefit) | 2.8 | 4.8 |
Total | 129.7 | 180.5 |
Others Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial loss | 39.4 | 75 |
Prior service cost (benefit) | -22.2 | -3.7 |
Total | $17.20 | $71.30 |
Postretirement_Benefit_Plans_C
Postretirement Benefit Plans - Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in benefit obligation | ' | ' | ' |
Benefit obligation - January 1 | $600 | ' | ' |
Interest cost | 8.3 | 9.5 | ' |
Amendments | 23.3 | ' | ' |
Benefit obligation - December 31 | 532.6 | 600 | ' |
U.S. Pension Plans [Member] | ' | ' | ' |
Change in benefit obligation | ' | ' | ' |
Benefit obligation - January 1 | 303.6 | 277.8 | ' |
Service cost | 4.9 | 4.8 | 5.6 |
Interest cost | 12.1 | 12.9 | 13.4 |
Amendments | 0.1 | 0 | ' |
Actuarial (gain) loss | -22.9 | 24.2 | ' |
Benefits and expenses paid | -16.6 | -16.1 | ' |
Assumed in acquisition | 0 | 0 | ' |
Foreign currency translation | 0 | 0 | ' |
Benefit obligation - December 31 | 281.2 | 303.6 | 277.8 |
International Pension Plan [Member] | ' | ' | ' |
Change in benefit obligation | ' | ' | ' |
Benefit obligation - January 1 | 83.4 | 52.3 | ' |
Service cost | 1.7 | 1 | 0.9 |
Interest cost | 2.5 | 2.5 | 2.5 |
Amendments | 0 | 0 | ' |
Actuarial (gain) loss | -1.8 | 14.8 | ' |
Benefits and expenses paid | -3.2 | -3.1 | ' |
Assumed in acquisition | 0 | 15 | ' |
Foreign currency translation | 2.2 | 0.9 | ' |
Benefit obligation - December 31 | 84.8 | 83.4 | 52.3 |
Pension [Member] | ' | ' | ' |
Change in benefit obligation | ' | ' | ' |
Benefit obligation - January 1 | 387 | 330.1 | ' |
Service cost | 6.6 | 5.8 | 6.5 |
Interest cost | 14.6 | 15.4 | 15.9 |
Amendments | 0.1 | 0 | ' |
Actuarial (gain) loss | -24.7 | 39 | ' |
Benefits and expenses paid | -19.8 | -19.2 | ' |
Assumed in acquisition | 0 | 15 | ' |
Foreign currency translation | 2.2 | 0.9 | ' |
Benefit obligation - December 31 | 366 | 387 | 330.1 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ' | ' | ' |
Change in benefit obligation | ' | ' | ' |
Benefit obligation - January 1 | 213 | 191.8 | ' |
Service cost | 2.9 | 2.5 | 1.8 |
Interest cost | 8.3 | 9.5 | 9.5 |
Amendments | -19 | -3.1 | ' |
Actuarial (gain) loss | -30.4 | 22 | ' |
Benefits paid | -8.2 | -9.7 | ' |
Benefit obligation - December 31 | $166.60 | $213 | $191.80 |
Postretirement_Benefit_Plans_C1
Postretirement Benefit Plans - Changes in Fair Value of Plan Assets of Pension Plans (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Change in plan assets | ' | ' |
Plan assets - December 31 | $278 | $257 |
Funded status at end of year | -254.6 | -343 |
U.S. Pension Plans [Member] | ' | ' |
Change in plan assets | ' | ' |
Plan assets - January 1 | 247.1 | 182.3 |
Actual return on plan assets | 35.4 | 22.6 |
Employer contributions | 0.9 | 58.3 |
Benefits and expenses paid | -16.6 | -16.1 |
Plan assets - December 31 | 266.8 | 247.1 |
Funded status at end of year | -14.4 | -56.5 |
International Pension Plan [Member] | ' | ' |
Change in plan assets | ' | ' |
Plan assets - January 1 | 2 | 2 |
Actual return on plan assets | 0.1 | 0.1 |
Employer contributions | 2.8 | 3 |
Benefits and expenses paid | -2.9 | -3.1 |
Plan assets - December 31 | 2 | 2 |
Funded status at end of year | -82.8 | -81.4 |
Pension [Member] | ' | ' |
Change in plan assets | ' | ' |
Plan assets - January 1 | 249.1 | 184.3 |
Actual return on plan assets | 35.5 | 22.7 |
Employer contributions | 3.7 | 61.3 |
Benefits and expenses paid | -19.5 | -19.2 |
Plan assets - December 31 | 268.8 | 249.1 |
Funded status at end of year | ($97.20) | ($137.90) |
Postretirement_Benefit_Plans_C2
Postretirement Benefit Plans - Changes in Fair Value of Plan Assets of Other Employee-Related Defined Benefit Plan Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Change in plan assets | ' | ' |
Plan assets - December 31 | $278 | $257 |
Funded status at end of year | -254.6 | -343 |
Others Benefits [Member] | ' | ' |
Change in plan assets | ' | ' |
Plan assets - January 1 | 7.9 | 7.5 |
Actual return on plan assets | 1.3 | 0.4 |
Employer contributions | 8.2 | 9.7 |
Benefits paid | -8.2 | -9.7 |
Plan assets - December 31 | 9.2 | 7.9 |
Funded status at end of year | ($157.40) | ($205.10) |
Postretirement_Benefit_Plans_P
Postretirement Benefit Plans - Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Postemployment Benefits [Abstract] | ' | ' |
Projected benefit obligation | $237.70 | $387 |
Accumulated benefit obligation | 234.6 | 383.7 |
Fair value of plan assets | $138.60 | $249.10 |
Postretirement_Benefit_Plans_O
Postretirement Benefit Plans - Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net periodic postretirement cost | ' | ' | ' |
Interest cost | $8.30 | $9.50 | ' |
Amortization of prior service cost | 0 | 0 | 0 |
Effect of curtailment / Special termination benefit | -1.2 | ' | ' |
U.S. Pension Plans [Member] | ' | ' | ' |
Net periodic postretirement cost | ' | ' | ' |
Service cost | 4.9 | 4.8 | 5.6 |
Interest cost | 12.1 | 12.9 | 13.4 |
Expected return on plan assets | -19.5 | -18.2 | -18.9 |
Amortization of net actuarial loss (gain) | 8.3 | 6.5 | 3.7 |
Amortization of prior service cost | 0.8 | 0.9 | 1.2 |
Net periodic postretirement cost | 6.6 | 6.9 | 5 |
Effect of curtailment / Special termination benefit | 1.2 | 0 | 2.5 |
Total net periodic postretirement cost | 7.8 | 6.9 | 7.5 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ' | ' | ' |
Net actuarial (gain) loss | -40 | 19.8 | 51.6 |
Amortization of net actuarial (loss) gain | -8.3 | -6.5 | -3.7 |
Amortization of prior service cost | -0.8 | -0.9 | -2.8 |
Foreign currency translation | 0 | 0 | 0 |
Total change recognized in other comprehensive loss | -49.1 | 12.4 | 45.1 |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | -41.3 | 19.3 | 52.6 |
International Pension Plan [Member] | ' | ' | ' |
Net periodic postretirement cost | ' | ' | ' |
Service cost | 1.7 | 1 | 0.9 |
Interest cost | 2.5 | 2.5 | 2.5 |
Expected return on plan assets | -0.1 | -0.1 | -0.1 |
Amortization of net actuarial loss (gain) | 0.6 | -0.2 | -0.1 |
Net periodic postretirement cost | 4.7 | 3.2 | 3.2 |
Effect of curtailment / Special termination benefit | 0 | 0 | 0 |
Total net periodic postretirement cost | 4.7 | 3.2 | 3.2 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ' | ' | ' |
Net actuarial (gain) loss | -1.8 | 14.8 | -1.1 |
Amortization of net actuarial (loss) gain | -0.6 | 0.2 | 0.1 |
Amortization of prior service cost | 0 | 0 | 0 |
Foreign currency translation | 0.5 | 0.4 | 0 |
Total change recognized in other comprehensive loss | -1.9 | 15.4 | -1 |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | 2.8 | 18.6 | 2.2 |
Pension [Member] | ' | ' | ' |
Net periodic postretirement cost | ' | ' | ' |
Service cost | 6.6 | 5.8 | 6.5 |
Interest cost | 14.6 | 15.4 | 15.9 |
Expected return on plan assets | -19.6 | -18.3 | -19 |
Amortization of net actuarial loss (gain) | 8.9 | 6.3 | 3.6 |
Amortization of prior service cost | 0.8 | 0.9 | 1.2 |
Net periodic postretirement cost | 11.3 | 10.1 | 8.2 |
Effect of curtailment / Special termination benefit | 1.2 | 0 | 2.5 |
Total net periodic postretirement cost | 12.5 | 10.1 | 10.7 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ' | ' | ' |
Net actuarial (gain) loss | -41.8 | 34.6 | 50.5 |
Amortization of net actuarial (loss) gain | -8.9 | -6.3 | -3.6 |
Amortization of prior service cost | -0.8 | -0.9 | -2.8 |
Foreign currency translation | 0.5 | 0.4 | 0 |
Total change recognized in other comprehensive loss | -51 | 27.8 | 44.1 |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | -38.5 | 37.9 | 54.8 |
Others Benefits [Member] | ' | ' | ' |
Net periodic postretirement cost | ' | ' | ' |
Service cost | 2.9 | 2.5 | 1.8 |
Interest cost | 8.3 | 9.5 | 9.5 |
Expected return on plan assets | -0.6 | -0.5 | -0.6 |
Amortization of net actuarial loss (gain) | 4.3 | 4.6 | 2.6 |
Amortization of prior service cost | -0.4 | -0.1 | -0.1 |
Total net periodic postretirement cost | 14.5 | 16 | 13.2 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | ' | ' | ' |
Net actuarial (gain) loss | -31.1 | 22.1 | 14.5 |
Prior service cost | -19 | -3.1 | 0 |
Amortization of net actuarial (loss) gain | -4.3 | -4.6 | -2.6 |
Amortization of prior service cost | 0.4 | 0.1 | 0.1 |
Total change recognized in other comprehensive loss | -54 | 14.5 | 12 |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | ($39.50) | $30.50 | $25.20 |
Postretirement_Benefit_Plans_N
Postretirement Benefit Plans - Net Loss and Prior Service Cost that will be Amortized from Accumulated Other Comprehensive Income Loss (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net actuarial loss | $8.90 |
Prior service cost (credit) | -5.4 |
Total | 3.5 |
Pension [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net actuarial loss | 6.6 |
Prior service cost (credit) | 0.6 |
Total | 7.2 |
Others Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net actuarial loss | 2.3 |
Prior service cost (credit) | -6 |
Total | ($3.70) |
Postretirement_Benefit_Plans_W
Postretirement Benefit Plans - Weighted-Average Assumptions used to Determine Benefit Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cost Assumptions: | ' | ' | ' |
Expected return on plan assets | 8.00% | 8.00% | 9.00% |
U.S. Pension Plans [Member] | ' | ' | ' |
Obligation Assumptions: | ' | ' | ' |
Discount rate | 4.80% | 4.10% | ' |
Cost Assumptions: | ' | ' | ' |
Discount rate | 4.10% | 4.80% | ' |
Expected return on plan assets | 8.00% | 8.00% | ' |
International Pension Plan [Member] | ' | ' | ' |
Obligation Assumptions: | ' | ' | ' |
Discount rate | 3.20% | 3.10% | ' |
Rate of future compensation increase | 3.40% | 3.20% | ' |
Cost Assumptions: | ' | ' | ' |
Discount rate | 3.10% | 4.80% | ' |
Expected return on plan assets | 4.70% | 4.70% | ' |
Postretirement_Benefit_Plans_W1
Postretirement Benefit Plans - Weighted Average Assumptions used to Determine Net Periodic Benefit Cost (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cost Assumptions: | ' | ' | ' |
Expected return on plan assets | 8.00% | 8.00% | 9.00% |
Others Benefits [Member] | ' | ' | ' |
Obligation Assumptions: | ' | ' | ' |
Discount rate | 4.70% | 4.10% | ' |
Cost Assumptions: | ' | ' | ' |
Discount rate | 4.10% | 4.80% | ' |
Expected return on plan assets | 8.00% | 8.00% | ' |
Postretirement_Benefit_Plans_A2
Postretirement Benefit Plans - Actual Versus Expected Long-Term Returns for Our Domestic Pension Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Postemployment Benefits [Abstract] | ' | ' | ' |
Expected rate of return on plan assets | 8.00% | 8.00% | 9.00% |
Actual rate of return on plan assets | 14.20% | 11.10% | -3.20% |
Postretirement_Benefit_Plans_A3
Postretirement Benefit Plans - Asset Allocation Range (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
U.S. equities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual allocation | 37.00% | 35.00% |
Minimum range | 30.00% | 30.00% |
Maximum range | 40.00% | 40.00% |
International equities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual allocation | 30.00% | 29.00% |
Minimum range | 20.00% | 20.00% |
Maximum range | 40.00% | 40.00% |
Fixed income [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual allocation | 32.00% | 35.00% |
Minimum range | 25.00% | 25.00% |
Maximum range | 45.00% | 45.00% |
Cash and other [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Actual allocation | 1.00% | 1.00% |
Minimum range | 0.00% | 0.00% |
Maximum range | 5.00% | 5.00% |
Postretirement_Benefit_Plans_F
Postretirement Benefit Plans - Fair Value of Plan Assets Held by Our Postretirement Benefits Plans (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | $278 | $257 | ' |
Pension [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 268.8 | 249.1 | 184.3 |
Pension [Member] | Level 2 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 268.8 | 249.1 | ' |
Pension [Member] | Level 2 [Member] | U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 98.2 | 86.9 | ' |
Pension [Member] | Level 2 [Member] | International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 56.6 | 46 | ' |
Pension [Member] | Level 2 [Member] | Emerging Markets [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 25.5 | 26.2 | ' |
Pension [Member] | Level 2 [Member] | Fixed income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 85 | 86.1 | ' |
Pension [Member] | Level 2 [Member] | Cash and other [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 3.5 | 3.9 | ' |
Pension [Member] | Total [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 268.8 | 249.1 | ' |
Pension [Member] | Total [Member] | U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 98.2 | 86.9 | ' |
Pension [Member] | Total [Member] | International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 56.6 | 46 | ' |
Pension [Member] | Total [Member] | Emerging Markets [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 25.5 | 26.2 | ' |
Pension [Member] | Total [Member] | Fixed income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 85 | 86.1 | ' |
Pension [Member] | Total [Member] | Cash and other [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 3.5 | 3.9 | ' |
Others Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 9.2 | 7.9 | 7.5 |
Others Benefits [Member] | Level 3 [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 9.2 | 7.9 | ' |
Others Benefits [Member] | Level 3 [Member] | U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 0 | 0 | ' |
Others Benefits [Member] | Level 3 [Member] | International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 0 | 0 | ' |
Others Benefits [Member] | Level 3 [Member] | Emerging Markets [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 0 | 0 | ' |
Others Benefits [Member] | Level 3 [Member] | Fixed income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 9.2 | 7.9 | ' |
Others Benefits [Member] | Level 3 [Member] | Cash and other [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 0 | 0 | ' |
Others Benefits [Member] | Total [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 9.2 | 7.9 | ' |
Others Benefits [Member] | Total [Member] | U.S. [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 0 | 0 | ' |
Others Benefits [Member] | Total [Member] | International [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 0 | 0 | ' |
Others Benefits [Member] | Total [Member] | Emerging Markets [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 0 | 0 | ' |
Others Benefits [Member] | Total [Member] | Fixed income [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | 9.2 | 7.9 | ' |
Others Benefits [Member] | Total [Member] | Cash and other [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Fair value of plan asset | $0 | $0 | ' |
Postretirement_Benefit_Plans_E
Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $15 |
U.S. Pension Plans [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 16.3 |
2015 | 16.7 |
2016 | 17.2 |
2017 | 17.7 |
2018 | 18.1 |
2019 - 2022 | 95.4 |
International Pension Plan [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 5 |
2015 | 4.2 |
2016 | 4 |
2017 | 4.3 |
2018 | 4.1 |
2019 - 2022 | 22.1 |
Others Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | 10.5 |
2015 | 10.7 |
2016 | 10.9 |
2017 | 11 |
2018 | 11 |
2019 - 2022 | $53.20 |
LongTerm_Incentive_Employee_Co2
Long-Term Incentive Employee Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 10 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 05, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 05, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2011 | |
Employee Stock Option [Member] | Restricted Stock [Member] | Options granted between 2004 and 2009 [Member] | Options granted prior to 2004, during 2010 and 2011 [Member] | RSUs [Member] | RSUs [Member] | PSUs [Member] | TSR Plan Awards [Member] | TSR Plan Awards [Member] | TSR Plan Awards [Member] | TSR Plan Awards [Member] | TSR Plan Awards [Member] | Discontinued Operations [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares initially available for awards under this Stock Option plan | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share available for future grant under stock option | 40,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost related to unvested options and restricted stock | $18,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost weighted average amortization period (years) | '2 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation costs related to liability-based awards | 4,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost weighted average period to be recognized | '1 year 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option Modification Charge | 200,000 | 500,000 | 7,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,200,000 |
Share Based Compensation Arrangement By Share Based Payment Award Options And Shares Transferred And Cancelled In Period | ' | ' | ' | 1,200,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation, vesting period | '3 years | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted awards with a contractual term | '6 years | ' | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual period | ' | ' | ' | ' | ' | '7 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | 26,300,000 | 24,700,000 | 29,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from the exercise of stock options | 34,800,000 | 58,000,000 | 61,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit realized from stock option exercises and restricted stock lapses | 13,400,000 | 11,000,000 | 16,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess Tax benefit from stock activity | 8,700,000 | 6,400,000 | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ITT's closing stock price | $43.42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable options out of the money | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total number of stock option expected to vest | 2,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average price of stock options expected to vest | $20.37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate intrinsic value of stock options expected to vest | 60,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life stock option expected to vest | '5 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield | 1.50% | 1.60% | ' | ' | ' | ' | ' | 1.49% | ' | ' | 1.49% | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend | ' | ' | ' | ' | ' | ' | ' | $0.40 | ' | ' | $0.40 | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | ' | ' | $26.76 | ' | ' | $26.76 | ' | ' | ' | ' |
Total number of shares expected to vest | ' | ' | ' | ' | ' | ' | ' | 900,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' |
Performance period for measuring fair value of outstanding awards | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payments to settle awards | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | ' | ' |
Estimated equity award liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,800,000 | ' | ' | ' | ' | ' |
Deferred compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,200,000 | ' |
LongTerm_Incentive_Employee_Co3
Long-Term Incentive Employee Compensation - Long-Term Incentive Employee Compensation Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Share-based compensation expense, equity-based awards | $13.30 | $12.90 | $23.30 |
Share-based compensation expense, liability-based awards | 3.8 | 1.9 | 2.1 |
Total share-based compensation expense in operating income (loss) | $17.10 | $14.80 | $25.40 |
LongTerm_Incentive_Employee_Co4
Long-Term Incentive Employee Compensation - Long-Term Incentive Employee Compensation Costs (Parenthetical) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Transformation costs | $0.20 | $0.50 | $4.70 |
Chief Executive Officer [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Transformation costs | ' | ' | $8.30 |
LongTerm_Incentive_Employee_Co5
Long-Term Incentive Employee Compensation - Status of Stock Option and Restricted Stock Shares (Detail) (USD $) | 2 Months Ended | 10 Months Ended | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2011 | Oct. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 |
Shares | ' | ' | ' | ' |
Beginning Balance, Shares | ' | 3.7 | 4.3 | 8 |
Stock Options Granted, Shares | 0.7 | 0.3 | 0.4 | 0.4 |
Stock Options Exercised, Shares | -0.7 | -0.7 | -1.9 | -3.8 |
Stock Options Canceled or Expired, Shares | ' | -1.3 | -0.1 | -0.3 |
Outstanding on Distribution Date before Equitable Adjustment, Shares | ' | 2 | ' | ' |
Outstanding on Distribution Date after Equitable Adjustment, Shares | ' | 8 | ' | ' |
Stock Options Outstanding at the end of Year, Shares | 8 | ' | 2.7 | 4.3 |
Stock Options Exercisable at the end of year, Shares | 6.3 | ' | 1.5 | 2.9 |
Weighted Average Exercise Price | ' | ' | ' | ' |
Beginning Balance, Weighted Average Exercise Price | ' | $85.08 | $18.46 | $16.70 |
Stock Options Granted, Weighted Average Exercise Price | $20.28 | $115.36 | $26.82 | $22.80 |
Stock Options Exercised, Weighted Average Exercise Price | $13.87 | $76.27 | $17.37 | $15.35 |
Stock Options Canceled or Expired, Weighted Average Exercise Price | ' | $92.76 | $16.15 | $17.21 |
Outstanding on Distribution Date before Equitable Adjustment, Weighted Average Exercise Price | ' | $88.52 | $0 | $0 |
Outstanding on Distribution Date after Equitable Adjustment, Weighted Average Exercise Price | ' | $16.18 | $0 | $0 |
Outstanding, Weighted Average Exercise Price | $16.70 | ' | $20.46 | $18.46 |
Stock Options Exercisable at the end of year, Weighted Average Exercise Price | $16.03 | ' | $18.34 | $17.10 |
LongTerm_Incentive_Employee_Co6
Long-Term Incentive Employee Compensation - Status of Stock Option and Restricted Stock Shares (Parenthetical) (Detail) (Exelis and Xylem [Member], USD $) | 10 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2011 |
Schedule Of Stock Options [Line Items] | ' |
Outstanding weighted average post exercise price | $92.20 |
Qualified Stock Options [Member] | ' |
Schedule Of Stock Options [Line Items] | ' |
Converted or Cancelled to the employees of Exelis/Xylem shares | 1.2 |
LongTerm_Incentive_Employee_Co7
Long-Term Incentive Employee Compensation - Share-based Compensation Summary of Stock Options (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Options Outstanding Number | 2.7 | 4.3 | 8 | 3.7 |
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | '6 years | ' | ' | ' |
Options Outstanding Weighted-Average Exercise Price | $20.46 | $18.46 | $16.70 | $85.08 |
Options Outstanding Aggregate Intrinsic Value | $61.40 | ' | ' | ' |
Options Exercisable Number | 1.5 | 2.9 | 6.3 | ' |
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | '4 years 2 months 12 days | ' | ' | ' |
Options Exercisable Weighted-Average Exercise Price | $18.34 | $17.10 | $16.03 | ' |
Options Exercisable Aggregate Intrinsic Value | 38.7 | ' | ' | ' |
$12 - $15 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Minimum exercise price | $12 | ' | ' | ' |
Maximum exercise price | $15 | ' | ' | ' |
Options Outstanding Number | 0.5 | ' | ' | ' |
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | '1 year 1 month 6 days | ' | ' | ' |
Options Outstanding Weighted-Average Exercise Price | $13.19 | ' | ' | ' |
Options Outstanding Aggregate Intrinsic Value | 14 | ' | ' | ' |
Options Exercisable Number | 0.5 | ' | ' | ' |
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | '1 year 1 month 6 days | ' | ' | ' |
Options Exercisable Weighted-Average Exercise Price | $13.19 | ' | ' | ' |
Options Exercisable Aggregate Intrinsic Value | 14 | ' | ' | ' |
$15 - $20 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Minimum exercise price | $15 | ' | ' | ' |
Maximum exercise price | $20 | ' | ' | ' |
Options Outstanding Number | 0.4 | ' | ' | ' |
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | '4 years 6 months | ' | ' | ' |
Options Outstanding Weighted-Average Exercise Price | $19.92 | ' | ' | ' |
Options Outstanding Aggregate Intrinsic Value | 9.7 | ' | ' | ' |
Options Exercisable Number | 0.4 | ' | ' | ' |
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | '4 years 6 months | ' | ' | ' |
Options Exercisable Weighted-Average Exercise Price | $19.92 | ' | ' | ' |
Options Exercisable Aggregate Intrinsic Value | 9.7 | ' | ' | ' |
$20 - $25 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Minimum exercise price | $20 | ' | ' | ' |
Maximum exercise price | $25 | ' | ' | ' |
Options Outstanding Number | 1.4 | ' | ' | ' |
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | '7 years 1 month 6 days | ' | ' | ' |
Options Outstanding Weighted-Average Exercise Price | $21.39 | ' | ' | ' |
Options Outstanding Aggregate Intrinsic Value | 31.9 | ' | ' | ' |
Options Exercisable Number | 0.6 | ' | ' | ' |
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | '6 years 1 month 6 days | ' | ' | ' |
Options Exercisable Weighted-Average Exercise Price | $20.94 | ' | ' | ' |
Options Exercisable Aggregate Intrinsic Value | 15 | ' | ' | ' |
$25 - $30 [Member] | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Minimum exercise price | $25 | ' | ' | ' |
Maximum exercise price | $30 | ' | ' | ' |
Options Outstanding Number | 0.4 | ' | ' | ' |
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | '9 years 2 months 12 days | ' | ' | ' |
Options Outstanding Weighted-Average Exercise Price | $26.82 | ' | ' | ' |
Options Outstanding Aggregate Intrinsic Value | 5.8 | ' | ' | ' |
Options Exercisable Number | 0 | ' | ' | ' |
Options Exercisable Weighted-Average Exercise Price | $0 | ' | ' | ' |
Options Exercisable Aggregate Intrinsic Value | $0 | ' | ' | ' |
LongTerm_Incentive_Employee_Co8
Long-Term Incentive Employee Compensation - Weighted Average Assumptions (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | |
November 7, 2011 Grants plan [Member] | 2011 Grants Before Distribution plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Dividend yield | 1.50% | 1.60% | 1.80% | 1.70% |
Expected volatility | 29.90% | 34.10% | 39.30% | 24.70% |
Expected life | '6 years 5 months 4 days | '6 years 10 months 24 days | '7 years | '7 years |
Risk-free rates | 1.10% | 1.40% | 1.50% | 3.10% |
Weighted-average grant date fair value | $6.62 | $6.71 | $6.97 | $29.70 |
LongTerm_Incentive_Employee_Co9
Long-Term Incentive Employee Compensation - Rollforward of Outstanding Restricted Stock (Detail) (RSUs, PSUs and RSAs [Member], USD $) | 2 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' |
Beginning Outstanding, shares | ' | 1.2 | 1.4 | 0.9 |
Granted , shares | 0.4 | 0.6 | 0.4 | 0.3 |
Lapsed, shares | ' | -0.4 | -0.5 | -0.3 |
Cancelled, shares | ' | -0.1 | -0.1 | -0.6 |
Outstanding, shares | 1.4 | 1.3 | 1.2 | 1.4 |
Ending Outstanding, shares | 1.4 | 1.3 | 1.2 | 1.4 |
Outstanding, Weighted Average Grant Date Fair Value | ' | $21.06 | $18.55 | $89.70 |
Granted, Weighted Average Grant Date Fair Value | $20.27 | $28.16 | $22.56 | $115.18 |
Lapsed, Weighted Average Grant Date Fair Value | ' | $20.25 | $15.21 | $99.53 |
Canceled, Weighted Average Grant Date Fair Value | ' | $22.68 | $20.58 | $95.30 |
Outstanding, Weighted Average Grant Date Fair Value | $18.55 | $24.17 | $21.06 | $18.55 |
Outstanding, Weighted Average Grant Date Fair Value | $18.55 | $24.17 | $21.06 | $18.55 |
Before Equitable Adjustment [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' |
Outstanding, shares | 0.3 | ' | ' | 0.3 |
Ending Outstanding, shares | 0.3 | ' | ' | 0.3 |
Outstanding, Weighted Average Grant Date Fair Value | $93.42 | ' | ' | $93.42 |
Outstanding, Weighted Average Grant Date Fair Value | $93.42 | ' | ' | $93.42 |
After Equitable Adjustment [Member] | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ' | ' | ' | ' |
Outstanding, shares | 1 | ' | ' | 1 |
Ending Outstanding, shares | 1 | ' | ' | 1 |
Outstanding, Weighted Average Grant Date Fair Value | $17.94 | ' | ' | $17.94 |
Outstanding, Weighted Average Grant Date Fair Value | $17.94 | ' | ' | $17.94 |
Recovered_Sheet1
Long-Term Incentive Employee Compensation - Rollforward of Outstanding Restricted Stock (Parenthetical) (Detail) (Restricted Stock [Member], Exelis and Xylem [Member], USD $) | 10 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Oct. 31, 2011 |
Restricted Stock [Member] | Exelis and Xylem [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares cancelled in connection with distribution | 0.5 |
Weighted-average grant date fair value | $95.14 |
Recovered_Sheet2
Long-Term Incentive Employee Compensation - Number of Outstanding Equity Settled RSUs, Cash Settled RSUs and RSAs (Detail) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Equity settled RSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity and Cash settled shares | 1 | 0.9 | 0.8 |
Cash settled RSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity and Cash settled shares | 0.1 | 0.1 | 0.1 |
PSUs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity and Cash settled shares | 0.2 | 0 | 0 |
RSAs [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Equity and Cash settled shares | 0 | 0.2 | 0.5 |
Capital_Stock_Additional_Infor
Capital Stock - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 87 Months Ended | |||
Oct. 31, 2011 | Oct. 27, 2006 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Aggregate common stock and preferred stock authorized | ' | ' | 300,000,000 | ' | ' | 300,000,000 |
Common stock, authorized | ' | ' | 250,000,000 | 250,000,000 | ' | 250,000,000 |
Common stock, par value | ' | ' | $1 | $1 | ' | $1 |
Preferred Stock, authorized | ' | ' | 50,000,000 | ' | ' | 50,000,000 |
Preferred Stock, outstanding | ' | ' | 0 | 0 | ' | 0 |
Dividends declared per common share | ' | ' | $0.40 | $0.36 | $1.59 | ' |
Term of repurchase program | ' | '3 years | ' | ' | ' | ' |
Share repurchase program | ' | $1,000,000,000 | ' | ' | ' | ' |
Shares purchased under share repurchase program | ' | ' | 3,100,000 | 5,100,000 | ' | 15,300,000 |
Cost of shares repurchased under share repurchase program | ' | ' | 85,200,000 | 113,400,000 | ' | 629,300,000 |
Number of share repurchased under settlement of employee tax withholding obligations | ' | ' | 100,000 | 100,000 | 100,000 | ' |
Shares repurchased aggregate value under settlement of employee tax withholding obligations | ' | ' | 2,700,000 | 3,400,000 | 6,600,000 | ' |
Common Stock held in treasury account | ' | ' | 13,000,000 | 11,900,000 | ' | 13,000,000 |
Stockholders equity note reverse stock split conversion ratio | '0.50 | ' | ' | ' | ' | ' |
Xylem [Member] | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock of ITT, shares issued | 1,000,000 | ' | ' | ' | ' | ' |
Exelis [Member] | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock of ITT, shares issued | 1,000,000 | ' | ' | ' | ' | ' |
Common Stock [Member] | ' | ' | ' | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' |
Shares purchased under share repurchase program | ' | ' | 3,200,000 | 5,200,000 | 100,000 | ' |
Cost of shares repurchased under share repurchase program | ' | ' | $3,200,000 | $5,200,000 | $100,000 | ' |
Issuance of shares from treasury account related to equity compensation arrangements | ' | ' | 2,300,000 | ' | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Claim | Claim | Claim | Claim | |
Minimum [Member] | ' | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' | ' |
Average cost per resolved claim | $3,000 | ' | ' | ' |
Average annual net cash outflow projected over the next five years | 10,000,000 | ' | ' | ' |
Average annual net cash outflow projected over the remainder of the projection period | 35,000,000 | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' | ' |
Average cost per resolved claim | 19,000 | ' | ' | ' |
Average annual net cash outflow projected over the next five years | 20,000,000 | ' | ' | ' |
Average annual net cash outflow projected over the remainder of the projection period | 45,000,000 | ' | ' | ' |
Asbestos Related Matters [Member] | ' | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' | ' |
Number of open claims pending against ITT | 79,000 | 96,000 | 105,000 | 104,000 |
Loss Contingency, Claims Dismissed, Number | 19,000 | 12,000 | 2,000 | ' |
Asbestos liability and related asset measurement period | '10 years | ' | ' | ' |
Recorded asbestos liability related to pending claims | 35.00% | ' | ' | ' |
Estimated Receivables due from domestic insurers | 86.00% | ' | ' | ' |
Aggregate settlement coverage agreement for asbestos related assets | 59.00% | ' | ' | ' |
Adjustment in estimated undiscounted asbestos liability | 65,000,000 | 75,800,000 | 44,100,000 | ' |
Decrease in estimated undiscounted asbestos related assets | 65,500,000 | 78,700,000 | 75,800,000 | ' |
Number of forecast periods to be maintained by each quarter | '10 years | ' | ' | ' |
Estimated asbestos exposure, net of expected recoveries from insurers and other responsible parties | 746,900,000 | 739,500,000 | ' | ' |
Settlement payment period | '5 years | ' | ' | ' |
Liability related to a business disposed | ' | 245,200,000 | ' | ' |
Asset related to a business disposed | ' | 233,800,000 | ' | ' |
Proceeds from Disposed Business | ' | 10,000,000 | ' | ' |
Benefit from Settlement Agreement, Continuing Operations | ' | 5,800,000 | ' | ' |
Benefit from Settlement Agreement, Discontinued Operations | ' | 5,600,000 | ' | ' |
Estimated Percentage of Recovered asbestos Costs | 41.00% | ' | ' | ' |
Percentage of Insurance Coverage Recoveries | 30.00% | ' | ' | ' |
Average annual net cash outflow projected in past three years | ' | 14,000,000 | 14,000,000 | 14,000,000 |
Total asset related to insurance policy | ' | 12,300,000 | ' | ' |
Asbestos Related Matters [Member] | Minimum [Member] | ' | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' | ' |
Average cost per resolved claim | 3,000 | 3,000 | 3,000 | ' |
Average annual net cash outflow projected over the next five years | 10,000,000 | ' | ' | ' |
Average annual net cash outflow projected over the remainder of the projection period | 35,000,000 | ' | ' | ' |
Asbestos Related Matters [Member] | Maximum [Member] | ' | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' | ' |
Average cost per resolved claim | 19,000 | 19,000 | 19,000 | ' |
Average annual net cash outflow projected over the next five years | 20,000,000 | ' | ' | ' |
Average annual net cash outflow projected over the remainder of the projection period | $45,000,000 | ' | ' | ' |
Asbestos Related Matters [Member] | Asbestos Related Matters [Member] | ' | ' | ' | ' |
Other Commitments [Line Items] | ' | ' | ' | ' |
Loss Contingency, Claims Dismissed, Number | ' | 12,000 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Activity Related to Asbestos Claims (Detail) (Asbestos Related Matters [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Claim | Claim | Claim | |
Number of Pending Claims [Roll Forward] | ' | ' | ' |
Asbestos liability and related asset measurement period | '10 years | ' | ' |
Pending claims - Beginning | 96,000 | 105,000 | 104,000 |
New claims | 5,000 | 4,000 | 5,000 |
Settlements | -3,000 | -1,000 | -2,000 |
Dismissals | -19,000 | -12,000 | -2,000 |
Pending claims - Ending | 79,000 | 96,000 | 105,000 |
Inactive [Member] | ' | ' | ' |
Number of Pending Claims [Roll Forward] | ' | ' | ' |
Pending claims - Beginning | 29,000 | ' | ' |
Dismissals | -12,000 | ' | -10,000 |
Pending claims - Ending | 18,000 | ' | 39,000 |
Active [Member] | ' | ' | ' |
Number of Pending Claims [Roll Forward] | ' | ' | ' |
Pending claims - Ending | 61,000 | 67,000 | 66,000 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Summary of Net Asbestos Charges (Detail) (Asbestos Related Matters [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Asbestos Related Contingencies [Line Items] | ' | ' | ' |
Net asbestos charge | $32.80 | $45.80 | $94 |
Continuing Operations [Member] | ' | ' | ' |
Asbestos Related Contingencies [Line Items] | ' | ' | ' |
Asbestos provision | 63.3 | 53.8 | 59.5 |
Asbestos remeasurement, net | 0.5 | 2.9 | 40.9 |
Settlement Agreement | -31 | -5.8 | 0 |
Net asbestos charge | 32.8 | 50.9 | 100.4 |
Discontinued Operations [Member] | ' | ' | ' |
Asbestos Related Contingencies [Line Items] | ' | ' | ' |
Asbestos provision | 0 | 0.5 | 2.8 |
Asbestos remeasurement, net | ' | 0 | -9.2 |
Settlement Agreement | 0 | -5.6 | 0 |
Net asbestos charge | $0 | ($5.10) | ($6.40) |
Commitments_and_Contingencies_4
Commitments and Contingencies - Roll forward of Asbestos Liability and Related Assets (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in estimate during the period: | ' | ' |
Noncurrent portion | $1,179.60 | $1,255 |
Asbestos Related Matters [Member] | ' | ' |
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ' | ' |
Net Balance, Beginning | 739.5 | 713.7 |
Changes in estimate during the period: | ' | ' |
Continuing operations | 63.8 | 56.8 |
Discontinued operations | 0 | -0.5 |
Settlement Agreement | 31 | -11.4 |
Net cash activity | -25.4 | -20.1 |
Balance, Ending | ' | 739.5 |
Estimated asbestos exposure, net of expected recoveries from insurers and other responsible parties | 746.9 | 739.5 |
Asbestos Related Matters [Member] | Liability [Member] | ' | ' |
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ' | ' |
Balance, Beginning | 1,347.40 | 1,667.90 |
Changes in estimate during the period: | ' | ' |
Continuing operations | 11.4 | 6.6 |
Discontinued operations | 0 | -11.5 |
Settlement Agreement | 0 | -245.2 |
Net cash activity | -94.1 | -93.4 |
Balance, Ending | 1,264.70 | 1,347.40 |
Current portion | 85.1 | 92.4 |
Noncurrent portion | 1,179.60 | 1,255 |
Asbestos Related Matters [Member] | Asset [Member] | ' | ' |
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ' | ' |
Balance, Beginning | 607.9 | 954.2 |
Changes in estimate during the period: | ' | ' |
Continuing operations | -52.4 | -50.2 |
Discontinued operations | 0 | 11 |
Settlement Agreement | ' | 233.8 |
Increase in asbestos related assets | 31 | ' |
Net cash activity | 68.7 | 73.3 |
Balance, Ending | 517.8 | 607.9 |
Current portion | -84.5 | -82.6 |
Noncurrent portion | $433.30 | $525.30 |
Commitments_and_Contingencies_5
Commitments and Contingencies - Rollforward of Environmental Liability and Related Assets (Detail) (Environmental Related Matters [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Environmental Liability and Related Assets [Roll Forward] | ' | ' |
Environmental liability - Beginning balance | $83.80 | $101.80 |
Environmental liability - Ending balance | 82.9 | 83.8 |
Continuing Operation, Net | 8.6 | -3.7 |
Accruals added during the period for new matters, Net | 0.5 | 0 |
Discontinued operations, Net | 1.5 | -2.9 |
Net cash activity, Net | -11.6 | -11.5 |
Accruals added during the period for new matters, Net | 0.1 | 0.1 |
Liability [Member] | ' | ' |
Environmental Liability and Related Assets [Roll Forward] | ' | ' |
Environmental liability - Beginning balance | 96.1 | 101.8 |
Continuing operations, Liability | 8.5 | 7.1 |
Discontinued operations, Liability | 1.5 | -1.4 |
Accruals added during the period for new matters, Liability | 0.5 | ' |
Net cash activity, Liability | -12.1 | -11.5 |
Foreign currency, Liability | 0.1 | 0.1 |
Environmental liability - Ending balance | 94.6 | 96.1 |
Asset [Member] | ' | ' |
Environmental Liability and Related Assets [Roll Forward] | ' | ' |
Environmental liability - Asset, Beginning balance | 12.3 | ' |
Continuing operations, Asset | -0.1 | 10.8 |
Discontinued operations, Asset | 0 | 1.5 |
Accruals added during the period for new matters, Assets | 0 | 0 |
Net cash activity, Asset | -0.5 | ' |
Foreign currency, Asset | ' | ' |
Environmental liability - Asset, Ending balance | $11.70 | $12.30 |
Commitments_and_Contingencies_6
Commitments and Contingencies - Range of Environmental Liability and Number of Active Sites for Environmental Matters (Detail) (Environmental Related Matters [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | site | site |
Environmental Related Matters [Member] | ' | ' |
Environmental Matters Range Of Estimated Liability And Active Sites Numbers [Line Items] | ' | ' |
Low-end range | $73.30 | $76.90 |
High end range | $168 | $167.10 |
Number of active environmental investigation and remediation sites | 60 | 58 |
Guarantees_Indemnities_and_War2
Guarantees, Indemnities and Warranties - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Guarantees [Abstract] | ' |
Guarantees, letters of credit and similar arrangements outstanding | $131.70 |
Guarantees_Indemnities_and_War3
Guarantees, Indemnities and Warranties - Changes in Product Warranty Accrual (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ' | ' |
Warranty accrual - January 1 | $28.60 | $25.20 |
Warranty expense | 8.6 | 10 |
Assumed in acquisition | ' | 1.9 |
Payments | -8.1 | -8.7 |
Foreign currency and other | -0.5 | 0.2 |
Warranty accrual - December 31 | $28.60 | $28.60 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | |
Segment | ||
Segment Reporting [Abstract] | ' | ' |
Number of reportable segments | 4 | ' |
Maximum percentage of revenue for which an individual customer accounts for | 10.10% | 13.40% |
Number of individual customer accounting for greater than ten percent of consolidated revenue | 1 | 0 |
Segment_Information_Schedule_o
Segment Information - Schedule of Segment Reporting Information by Segment Revenue (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | $2,496.90 | $2,227.80 | $2,085.60 |
Operating income (loss) | 183.6 | 151.5 | -244.9 |
Operating margin | 7.40% | 6.80% | -11.70% |
Industrial Process [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 1,107.40 | 955.8 | 766.7 |
Operating income (loss) | 112 | 99.3 | 91.5 |
Operating margin | 10.10% | 10.40% | 11.90% |
Motion Technologies [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 721.8 | 626.2 | 634.4 |
Operating income (loss) | 100.3 | 83.1 | 85.3 |
Operating margin | 13.90% | 13.30% | 13.40% |
Interconnect Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 395.5 | 375.7 | 417.8 |
Operating income (loss) | 14.2 | 6.9 | 37.8 |
Operating margin | 3.60% | 1.80% | 9.00% |
Control Technologies [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 278.2 | 277.1 | 285.5 |
Operating income (loss) | 55.3 | 58.3 | 55.2 |
Operating margin | 19.90% | 21.00% | 19.30% |
Total Segment Results [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | 2,502.90 | 2,234.80 | 2,104.40 |
Operating income (loss) | 281.8 | 247.6 | 269.8 |
Operating margin | 11.30% | 11.10% | 12.80% |
Asbestos Related Costs Net [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating income (loss) | -32.8 | -50.9 | -100.4 |
Transformation Costs [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Operating income (loss) | -0.9 | -8.7 | -384.9 |
Eliminations / Other Corporate Costs [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | -6 | -7 | -18.8 |
Operating income (loss) | -64.5 | -36.5 | -29.4 |
Total Eliminations / Corporate and Other Costs [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Revenue | -6 | -7 | -18.8 |
Operating income (loss) | ($98.20) | ($96.10) | ($514.70) |
Segment_Information_Schedule_o1
Segment Information - Schedule of Segment Reporting Information by Segment Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | $3,740.20 | $3,386.10 | ' |
Capital Expenditures | 122.9 | 83.8 | 102.3 |
Depreciation and amortization | 86.9 | 71.1 | 71.3 |
Industrial Process [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 1,132.70 | 1,044.80 | ' |
Capital Expenditures | 63 | 35 | 25.3 |
Depreciation and amortization | 31 | 17.3 | 13 |
Motion Technologies [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 466.2 | 405.6 | ' |
Capital Expenditures | 31.7 | 27.1 | 33.3 |
Depreciation and amortization | 29.6 | 27.8 | 27.3 |
Interconnect Solutions [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 364.6 | 362.6 | ' |
Capital Expenditures | 15.6 | 11.2 | 16.6 |
Depreciation and amortization | 10.6 | 10 | 9.7 |
Control Technologies [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 344.7 | 347 | ' |
Capital Expenditures | 5.7 | 6.1 | 5.3 |
Depreciation and amortization | 10 | 9.3 | 10.3 |
Corporate and Other [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Assets | 1,432 | 1,226.10 | ' |
Capital Expenditures | 6.9 | 4.4 | 21.8 |
Depreciation and amortization | $5.70 | $6.70 | $11 |
Segment_Information_Business_S
Segment Information - Business Segment Information by Geographical Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | $2,496.90 | $2,227.80 | $2,085.60 |
Plant, Property & Equipment, Net | 426.2 | 373.1 | ' |
United States [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 896.2 | 869.3 | 779.6 |
Plant, Property & Equipment, Net | 151 | 127.3 | ' |
Italy [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Plant, Property & Equipment, Net | 78.7 | 78.4 | ' |
Germany [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 266.7 | 200.5 | 229.8 |
Plant, Property & Equipment, Net | 51.8 | 50.6 | ' |
South Korea [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Plant, Property & Equipment, Net | 40.5 | 19.1 | ' |
China | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Plant, Property & Equipment, Net | 31.3 | 20.5 | ' |
Other Developed Markets [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 583.4 | 519.3 | 487.8 |
Plant, Property & Equipment, Net | 22 | 21.1 | ' |
Emerging Growth Markets [Member] | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Revenues | 750.6 | 638.7 | 588.4 |
Plant, Property & Equipment, Net | $50.90 | $56.10 | ' |
Segment_Information_Revenue_by
Segment Information - Revenue by Product Category, Net of Intercompany Balances (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | $2,496.90 | $2,227.80 | $2,085.60 |
Pumps and Complementary Products [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | 1,010.80 | 879 | 692.3 |
Pump Support and Maintenance Services [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | 96.6 | 76.8 | 66.7 |
Friction Products [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | 619.6 | 517.6 | 524.1 |
Shock Absorber Equipment [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | 102 | 107 | 110.3 |
Connectors Equipment [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | 394.9 | 375.4 | 412.7 |
CT Aerospace Products [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | 192.6 | 185.4 | 192.2 |
CT Industrial Products [Member] | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' |
Revenue | $80.40 | $86.60 | $87.30 |