Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Oct. 30, 2014 |
Document Documentand Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'ITT | ' |
Entity Registrant Name | 'ITT Corporation | ' |
Entity Central Index Key | '0000216228 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 91.6 |
CONSOLIDATED_CONDENSED_INCOME_
CONSOLIDATED CONDENSED INCOME STATEMENTS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $657.10 | $634 | $1,994.60 | $1,851.40 |
Costs of revenue | 437.2 | 431.1 | 1,345.10 | 1,260.20 |
Gross profit | 219.9 | 202.9 | 649.5 | 591.2 |
Sales and marketing expenses | 53.5 | 52.7 | 165.1 | 162 |
General and administrative expenses | 69.1 | 72.5 | 216.3 | 208.2 |
Research and development expenses | 20.1 | 16.1 | 56.4 | 48.9 |
Asbestos-related (benefit) costs, net | -42.5 | -15.4 | -10.8 | 16.5 |
Operating income | 119.7 | 77 | 222.5 | 155.6 |
Interest and non-operating expenses (income), net | 0.7 | -2.3 | 2.3 | 2.6 |
Income from continuing operations before income tax expense (benefit) | 119 | 79.3 | 220.2 | 153 |
Income tax expense (benefit) | 38 | -354.4 | 63.4 | -325 |
Income from continuing operations | 81 | 433.7 | 156.8 | 478 |
(Loss) income from discontinued operations, including tax expense (benefit) | -0.3 | -2.3 | -4.2 | 0.5 |
Net income | 80.7 | 431.4 | 152.6 | 478.5 |
Less: Income attributable to noncontrolling interests | 0.4 | 0.7 | 1.8 | 1.2 |
Net income attributable to ITT Corporation | 80.3 | 430.7 | 150.8 | 477.3 |
Amounts attributable to ITT Corporation: | ' | ' | ' | ' |
Income from continuing operations, net of tax | 80.6 | 433 | 155 | 476.8 |
(Loss) income from discontinued operations, including tax expense (benefit) | -0.3 | -2.3 | -4.2 | 0.5 |
Net income attributable to ITT Corporation | $80.30 | $430.70 | $150.80 | $477.30 |
Basic: | ' | ' | ' | ' |
Continuing operations (usd per share) | $0.88 | $4.79 | $1.69 | $5.24 |
Discontinued operations (usd per share) | $0 | ($0.03) | ($0.04) | $0.01 |
Net income (usd per share) | $0.88 | $4.76 | $1.65 | $5.25 |
Diluted: | ' | ' | ' | ' |
Continuing operations (usd per share) | $0.87 | $4.71 | $1.67 | $5.17 |
Discontinued operations (usd per share) | ($0.01) | ($0.02) | ($0.05) | $0 |
Net income (usd per share) | $0.86 | $4.69 | $1.62 | $5.17 |
Weighted average common shares - basic | 91.6 | 90.4 | 91.5 | 91 |
Weighted average common shares - diluted | 92.9 | 91.9 | 92.9 | 92.3 |
Cash dividends declared per common share | $0.11 | $0.10 | $0.33 | $0.30 |
CONSOLIDATED_CONDENSED_INCOME_1
CONSOLIDATED CONDENSED INCOME STATEMENTS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Tax expense (benefit) on income from discontinued operations | $1.80 | $1 | $4.80 | $0.80 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $80.70 | $431.40 | $152.60 | $478.50 |
Other comprehensive income: | ' | ' | ' | ' |
Net foreign currency translation adjustment | -53.3 | 29.4 | -54.2 | 4.2 |
Net change in postretirement benefit plans, net of tax | 19 | 2.8 | 20.3 | 8.7 |
Other comprehensive (loss) income | -34.3 | 32.2 | -33.9 | 12.9 |
Comprehensive income | 46.4 | 463.6 | 118.7 | 491.4 |
Less: Comprehensive income attributable to noncontrolling interest | 0.4 | 0.7 | 1.8 | 1.2 |
Comprehensive income attributable to ITT Corporation | 46 | 462.9 | 116.9 | 490.2 |
Disclosure of reclassification and other adjustments to postretirement benefit plans | ' | ' | ' | ' |
Amortization of prior service (benefit) costs, net of tax | -0.8 | 0 | -2.5 | 0.2 |
Amortization of net actuarial loss (gain), net of tax | 1.6 | -0.4 | 4.6 | 6.3 |
Unrealized change in net actuarial loss, net of tax | 18.2 | 3.2 | 18.2 | 2.2 |
Net change in postretirement benefit plans, net of tax | $19 | $2.80 | $20.30 | $8.70 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (Parentheticals) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $10.80 | $5.70 | $11.40 | $5.70 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax | -0.6 | 0.1 | -1.5 | 0.1 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax | 0.8 | 3.7 | 2.4 | 3.7 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax | $10.60 | $1.90 | $10.60 | $1.90 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $522.60 | $507.30 | |
Receivables, net | 569.2 | 496.7 | |
Inventories, net | 312.8 | 315.9 | |
Other current assets | 305 | 345.6 | |
Total current assets | 1,709.60 | 1,665.50 | |
Plant, property and equipment, net | 433.2 | 426.2 | |
Goodwill | 643 | 659.8 | |
Other intangible assets, net | 95.5 | 106.9 | |
Asbestos-related assets | 397.2 | 433.3 | |
Deferred income taxes | 282.2 | 303.6 | |
Other non-current assets | 146 | 144.9 | |
Total non-current assets | 1,997.10 | 2,074.70 | |
Total assets | 3,706.70 | 3,740.20 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 330.7 | 332.7 | |
Accrued and other current liabilities | 484.6 | 499.9 | |
Total current liabilities | 815.3 | 832.6 | |
Asbestos-related liabilities | 1,118.10 | 1,179.60 | |
Postretirement benefits | 205.5 | 243.3 | |
Other non-current liabilities | 266.1 | 277.8 | |
Total non-current liabilities | 1,589.70 | 1,700.70 | |
Total liabilities | 2,405 | 2,533.30 | |
Shareholders’ equity: | ' | ' | |
Common stock | 91.6 | 91 | |
Retained earnings | 1,449.50 | 1,320.30 | |
Total accumulated other comprehensive loss | -244.2 | -210.3 | |
Total ITT Corporation shareholders' equity | 1,296.90 | 1,201 | |
Noncontrolling interests | 4.8 | 5.9 | |
Total shareholders' equity | 1,301.70 | 1,206.90 | |
Total liabilities and shareholders' equity | $3,706.70 | $3,740.20 | |
[1] | Amounts reflect balances as of December 31, 2013. |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common stock, shares authorized | 250 | 250 |
Common stock, par value | $1 | $1 |
Common stock, shares issued | 104.2 | 104 |
Common stock, shares outstanding | 91.6 | 91 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Activities | ' | ' |
Net income | $152.60 | $478.50 |
Less: (Loss) income from discontinued operations, including tax expense (benefit) | -4.2 | 0.5 |
Less: Income attributable to noncontrolling interests | 1.8 | 1.2 |
Net income from continuing operations attributable to ITT Corporation | 155 | 476.8 |
Adjustments to income (loss) from continuing operations: | ' | ' |
Depreciation and amortization | 64.2 | 66.5 |
Stock-based compensation | 10.8 | 9.7 |
Asbestos-related (benefit) costs, net | -10.8 | 16.5 |
Asbestos-related payments, net | -8.9 | -19.2 |
Changes in assets and liabilities: | ' | ' |
Change in receivables | -93.5 | -106.5 |
Change in inventories | -6.3 | 7.4 |
Change in accounts payable | 1.2 | 4.4 |
Change in accrued expenses | 4.1 | -3.5 |
Change in accrued and deferred income taxes | 5 | -340.1 |
Other, net | 11.1 | -13.4 |
Net Cash - Operating activities | 131.9 | 98.6 |
Investing Activities | ' | ' |
Capital expenditures | -74.4 | -58.2 |
Purchases of investments | -165.1 | -147.2 |
Maturities of investments | 207 | 84.8 |
Other, net | 0 | 1.8 |
Net Cash - Investing activities | -32.5 | -118.8 |
Financing Activities | ' | ' |
Short-term debt, net | -38 | 53.5 |
Long-term debt, repaid | -1.2 | -6 |
Repurchase of common stock | -25.5 | -87.9 |
Issuance of common stock | 14.3 | 28 |
Dividends paid | -20.4 | -18.3 |
Excess tax benefit from equity compensation activity | 8.4 | 5.3 |
Other, net | -1.5 | 1.2 |
Net Cash - Financing activities | -63.9 | -24.2 |
Exchange rate effects on cash and cash equivalents | -15.1 | -1.1 |
Discontinued operations: | ' | ' |
Net Cash - Operating activities of discontinued operations | -5.1 | -18.4 |
Net change in cash and cash equivalents | 15.3 | -63.9 |
Cash and cash equivalents – beginning of year | 507.3 | 544.5 |
Cash and cash equivalents – end of period | 522.6 | 480.6 |
Cash paid during the year for: | ' | ' |
Interest paid | 1.1 | 0.9 |
Income taxes, net of refunds received | $47.80 | $11.90 |
CONSOLIDATED_CONDENSED_STATEME3
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREDHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Millions, unless otherwise specified | |||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2012 | ' | ' | ' | ($91.70) | ' |
Unrealized loss on investment securities, beginning balance at Dec. 31, 2012 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, beginning balance at Dec. 31, 2012 | 703.2 | 91.9 | 898.8 | ' | 0 |
Postretirement benefit plans, beginning balance at Dec. 31, 2012 | ' | ' | ' | -195.5 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Activity from stock incentive plans | ' | 2 | ' | ' | ' |
Net income attributable to ITT Corporation | 477.3 | ' | 477.3 | ' | ' |
Cash Dividends Declared on Common Stock | ' | ' | -27.6 | ' | ' |
Activity from Stock Incentive Plans | ' | ' | 41.2 | ' | ' |
Share Repurchases | ' | -3.2 | -84.7 | ' | ' |
Purchase of Noncontrolling Interest | ' | ' | 0 | ' | 0 |
Net change in postretirement benefit plans | 8.7 | ' | ' | 8.7 | ' |
Net cumulative translation adjustment | ' | ' | ' | 4.2 | ' |
Reclassification of noncontrolling interest | ' | ' | ' | ' | 3.9 |
Income attributable to noncontrolling interest | 1.2 | ' | ' | ' | 1.2 |
Net change in common stock | ' | -1.2 | ' | ' | ' |
Net change in retained earnings | ' | ' | 406.2 | ' | ' |
Net change in accumulated other comprehensive loss | ' | ' | ' | 12.9 | ' |
Net change in noncontrolling interests | ' | ' | ' | ' | 4.9 |
Change in noncontrolling interests, other | ' | ' | ' | ' | -0.2 |
Unrealized loss on investment securities, ending balance at Sep. 30, 2013 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, ending balance at Sep. 30, 2013 | 1,126 | 90.7 | 1,305 | -274.6 | 4.9 |
Postretirement benefit plans, ending balance at Sep. 30, 2013 | ' | ' | ' | -186.8 | ' |
Cumulative translation adjustment, ending balance at Sep. 30, 2013 | ' | ' | ' | -87.5 | ' |
Cumulative translation adjustment, beginning balance at Jun. 30, 2013 | ' | ' | ' | -116.9 | ' |
Unrealized loss on investment securities, beginning balance at Jun. 30, 2013 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, beginning balance at Jun. 30, 2013 | 660.5 | 90.3 | 872.6 | ' | 4.4 |
Postretirement benefit plans, beginning balance at Jun. 30, 2013 | ' | ' | ' | -189.6 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Activity from stock incentive plans | ' | 0.4 | ' | ' | ' |
Net income attributable to ITT Corporation | 430.7 | ' | 430.7 | ' | ' |
Cash Dividends Declared on Common Stock | ' | ' | -9.2 | ' | ' |
Activity from Stock Incentive Plans | ' | ' | 10.9 | ' | ' |
Share Repurchases | ' | 0 | 0 | ' | ' |
Purchase of Noncontrolling Interest | ' | ' | 0 | ' | 0 |
Net change in postretirement benefit plans | 2.8 | ' | ' | 2.8 | ' |
Net cumulative translation adjustment | ' | ' | ' | 29.4 | ' |
Reclassification of noncontrolling interest | ' | ' | ' | ' | 0 |
Income attributable to noncontrolling interest | 0.7 | ' | ' | ' | 0.7 |
Net change in common stock | ' | 0.4 | ' | ' | ' |
Net change in retained earnings | ' | ' | 432.4 | ' | ' |
Net change in accumulated other comprehensive loss | ' | ' | ' | 32.2 | ' |
Net change in noncontrolling interests | ' | ' | ' | ' | 0.5 |
Change in noncontrolling interests, other | ' | ' | ' | ' | -0.2 |
Unrealized loss on investment securities, ending balance at Sep. 30, 2013 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, ending balance at Sep. 30, 2013 | 1,126 | 90.7 | 1,305 | -274.6 | 4.9 |
Postretirement benefit plans, ending balance at Sep. 30, 2013 | ' | ' | ' | -186.8 | ' |
Cumulative translation adjustment, ending balance at Sep. 30, 2013 | ' | ' | ' | -87.5 | ' |
Cumulative translation adjustment, beginning balance at Dec. 31, 2013 | ' | ' | ' | -80.8 | ' |
Unrealized loss on investment securities, beginning balance at Dec. 31, 2013 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, beginning balance at Dec. 31, 2013 | 1,206.90 | 91 | 1,320.30 | ' | 5.9 |
Postretirement benefit plans, beginning balance at Dec. 31, 2013 | ' | ' | ' | -129.2 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Activity from stock incentive plans | ' | 1.1 | ' | ' | ' |
Net income attributable to ITT Corporation | 150.8 | ' | 150.8 | ' | ' |
Cash Dividends Declared on Common Stock | ' | ' | -30.4 | ' | ' |
Activity from Stock Incentive Plans | ' | ' | 32.4 | ' | ' |
Share Repurchases | ' | -0.5 | -25 | ' | ' |
Purchase of Noncontrolling Interest | ' | ' | 1.4 | ' | -2.9 |
Net change in postretirement benefit plans | 20.3 | ' | ' | 20.3 | ' |
Net cumulative translation adjustment | ' | ' | ' | -54.2 | ' |
Reclassification of noncontrolling interest | ' | ' | ' | ' | 0 |
Income attributable to noncontrolling interest | 1.8 | ' | ' | ' | 1.8 |
Net change in common stock | ' | 0.6 | ' | ' | ' |
Net change in retained earnings | ' | ' | 129.2 | ' | ' |
Net change in accumulated other comprehensive loss | ' | ' | ' | -33.9 | ' |
Net change in noncontrolling interests | ' | ' | ' | ' | -1.1 |
Change in noncontrolling interests, other | ' | ' | ' | ' | 0 |
Unrealized loss on investment securities, ending balance at Sep. 30, 2014 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, ending balance at Sep. 30, 2014 | 1,301.70 | 91.6 | 1,449.50 | -244.2 | 4.8 |
Postretirement benefit plans, ending balance at Sep. 30, 2014 | ' | ' | ' | -108.9 | ' |
Cumulative translation adjustment, ending balance at Sep. 30, 2014 | ' | ' | ' | -135 | ' |
Cumulative translation adjustment, beginning balance at Jun. 30, 2014 | ' | ' | ' | -81.7 | ' |
Unrealized loss on investment securities, beginning balance at Jun. 30, 2014 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, beginning balance at Jun. 30, 2014 | 1,267.10 | 91.6 | 1,381 | ' | 4.4 |
Postretirement benefit plans, beginning balance at Jun. 30, 2014 | ' | ' | ' | -127.9 | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Activity from stock incentive plans | ' | 0.2 | ' | ' | ' |
Net income attributable to ITT Corporation | 80.3 | ' | 80.3 | ' | ' |
Cash Dividends Declared on Common Stock | ' | ' | -10.2 | ' | ' |
Activity from Stock Incentive Plans | ' | ' | 8.7 | ' | ' |
Share Repurchases | ' | -0.2 | -10.3 | ' | ' |
Purchase of Noncontrolling Interest | ' | ' | 0 | ' | 0 |
Net change in postretirement benefit plans | 19 | ' | ' | 19 | ' |
Net cumulative translation adjustment | ' | ' | ' | -53.3 | ' |
Reclassification of noncontrolling interest | ' | ' | ' | ' | 0 |
Income attributable to noncontrolling interest | 0.4 | ' | ' | ' | 0.4 |
Net change in common stock | ' | 0 | ' | ' | ' |
Net change in retained earnings | ' | ' | 68.5 | ' | ' |
Net change in accumulated other comprehensive loss | ' | ' | ' | -34.3 | ' |
Net change in noncontrolling interests | ' | ' | ' | ' | 0.4 |
Change in noncontrolling interests, other | ' | ' | ' | ' | 0 |
Unrealized loss on investment securities, ending balance at Sep. 30, 2014 | ' | ' | ' | -0.3 | ' |
Total shareholders' equity, ending balance at Sep. 30, 2014 | 1,301.70 | 91.6 | 1,449.50 | -244.2 | 4.8 |
Postretirement benefit plans, ending balance at Sep. 30, 2014 | ' | ' | ' | -108.9 | ' |
Cumulative translation adjustment, ending balance at Sep. 30, 2014 | ' | ' | ' | ($135) | ' |
DESCRIPTION_OF_BUSINESS_AND_BA
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | ' |
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 engineered fluid process equipment; Motion Technologies, consisting of brake pads, shock absorbers, and damping technologies; Interconnect Solutions, consisting of highly specialized connector products; and Control Technologies, consisting of vibration and shock isolation, motion control, and fluid handling products. Financial information for our segments is presented in Note 17, “Segment Information.” | |
Basis of Presentation | |
The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in ITT's Annual Report on Form 10-K for the year ended December 31, 2013 (2013 Annual Report) in preparing these unaudited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2013 Annual Report. | |
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. | |
ITT's quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31st. For ease of presentation, the quarterly financial statements included herein are described as ending on the last day of the calendar quarter. | |
Summary of Significant Accounting Policies | |
Due to an increase in the number and size of complex long-term industrial pump design and build contracts, an update to the revenue recognition accounting policy disclosed in the 2013 Annual Report is provided below: | |
Revenue Recognition | |
We recognize revenue for certain long-term design and build projects using the percentage-of-completion method, based upon the percentage of costs incurred to total projected costs. Revenue and profit recognized under the percentage-of-completion method are based on management’s estimates. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of receivables, net. During the performance of long-term sales contracts, estimated final contract prices and costs are reviewed periodically and revisions are made as required and recorded in income in the period in which they are determined. Provisions for estimated losses on uncompleted long-term sales contracts are made in the period in which such losses are determined and are recorded as a component of costs of revenue. We continue to apply the completed-contract method of accounting for smaller design and build contracts, including those of short-term duration. Our results of operations and financial position would not vary materially had we used the percentage-of-completion method for these types of contracts. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
Recently Adopted Accounting Pronouncements | |
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 did not 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 did not 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 this guidance on January 1, 2014 did not have a material impact to ITT's financial statements. | |
Accounting Pronouncements Not Yet Adopted | |
In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Adoption of the amendments is required in the first quarter of fiscal 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. ITT is currently evaluating the impact of these amendments and the transition alternatives on ITT's financial statements. | |
In April 2014, the FASB issued guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and other disposals that do not meet the definition of a discontinued operation. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The new guidance will become effective on January 1, 2015, with early adoption permitted. While we do not expect a material impact on ITT’s financial statements upon adoption, the effects on future periods will depend upon the nature and significance of future disposals. |
RESTRUCTURING_ACTIONS_RESTRUCT
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
RESTRUCTURING ACTIONS | ' | |||||||||||||||
RESTRUCTURING ACTIONS | ||||||||||||||||
The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Income Statements for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Severance costs | $ | 2.2 | $ | 1.2 | $ | 18.8 | $ | 9.9 | ||||||||
Asset write-offs | — | 0.5 | 1.3 | 0.5 | ||||||||||||
Other restructuring costs | 0.9 | — | 2.1 | 0.2 | ||||||||||||
Total restructuring costs | $ | 3.1 | $ | 1.7 | $ | 22.2 | $ | 10.6 | ||||||||
By segment: | ||||||||||||||||
Industrial Process | $ | 1.6 | $ | 0.4 | $ | 4.5 | $ | 1.1 | ||||||||
Motion Technologies | 0.1 | 0.6 | 0.3 | 3.1 | ||||||||||||
Interconnect Solutions | 0.4 | 0.6 | 16.4 | 6 | ||||||||||||
Control Technologies | — | — | — | — | ||||||||||||
Corporate and Other | 1 | 0.1 | 1 | 0.4 | ||||||||||||
The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the nine months ended September 30, 2014 and 2013. | ||||||||||||||||
For the Nine Months Ended September 30 | 2014 | 2013 | ||||||||||||||
Restructuring accruals - beginning balance | $ | 14.7 | $ | 7.8 | ||||||||||||
Restructuring costs | 22.2 | 10.6 | ||||||||||||||
Cash payments | (13.0 | ) | (13.2 | ) | ||||||||||||
Asset write-offs | (1.3 | ) | (0.5 | ) | ||||||||||||
Foreign exchange translation and other | (0.5 | ) | — | |||||||||||||
Restructuring accrual - ending balance | $ | 22.1 | $ | 4.7 | ||||||||||||
By accrual type: | ||||||||||||||||
Severance accrual | $ | 20 | $ | 4.7 | ||||||||||||
Facility carrying and other costs accrual | 2.1 | — | ||||||||||||||
Interconnect Solutions Turnaround Activities | ||||||||||||||||
In 2013, we initiated a comprehensive restructuring plan to improve the overall cost structure of our Interconnect Solutions (ICS) segment. The costs incurred during the nine months ended September 30, 2014 of $16.4, primarily relate to employee severance for approximately 250 planned headcount reductions, associated with an action to move certain production lines from one location to another existing lower cost manufacturing site. The costs incurred during the nine months ended September 30, 2013 of $6.0 primarily related to employee severance for 75 reductions across our global operating locations. To date, we have incurred $34.5 under the ICS turnaround plan spanning the past 2 years, and related to these previously announced actions, we expect to incur further restructuring costs of approximately $1.0 over the next three months. The following table provides a rollforward of the restructuring accrual associated with the ICS turnaround activities. | ||||||||||||||||
For the Nine Months Ended September 30 | 2014 | |||||||||||||||
Restructuring accruals - beginning balance | $ | 8 | ||||||||||||||
Restructuring costs | 16.4 | |||||||||||||||
Cash payments | (8.0 | ) | ||||||||||||||
Asset write-offs | (1.3 | ) | ||||||||||||||
Restructuring accruals - ending balance | $ | 15.1 | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
For the three months ended September 30, 2014, the Company recognized income tax expense of $38.0 representing an effective tax rate of 31.9% compared to an income tax benefit of $354.4, and an effective tax rate of (446.9)%, for the three months ended September 30, 2013. For the nine months ended September 30, 2014 the Company recognized income tax expense of $63.4 representing an effective tax rate of 28.8% compared to an income tax benefit of $325.0, and an effective tax rate of (212.4)%. The 2014 effective tax rate includes tax benefits resulting from a tax basis step-up election in Italy and additional income that is eligible for the tax holiday in Korea. These were partially offset by a change in the foreign valuation allowance assessment. | |
The significantly lower effective tax rate in 2013 is primarily attributable to the release of the valuation allowance against U.S. deferred tax assets of $374.6. In the third quarter of 2013, the Company moved from a three-year adjusted cumulative domestic pretax loss position to a three-year adjusted cumulative domestic pretax income position. In measuring adjusted cumulative pretax income (loss), the Company adjusted pretax U.S. income (loss) for nonrecurring items and recurring permanent differences. The recurring permanent differences included excess stock option deductions which represented the amount of tax deductions in excess of book deductions, ultimately reducing book income on the tax return, and foreign earnings, the indefinite reinvestment of which was not asserted, and was not expected to be asserted in the foreseeable future, and dividends paid or expected to be paid. Each of these items was recurring in nature and representative of our book taxable income. In addition, we included adjustments for certain non-recurring costs directly attributable to the 2011 spin-off transaction as these were not indicative of future taxable income. The three-year cumulative income position was strong positive evidence in evaluating the realizability of our deferred tax assets as of September 30, 2013. However, the Company considered all available evidence, both positive and negative, in its evaluation to reverse the valuation allowance at that time, including future earnings, industry trends, and certain contingencies, such as asbestos-related costs. Further, we considered future reversals of existing taxable temporary differences as a source of income available to recover a portion of existing deferred tax assets, future taxable income exclusive of reversing taxable temporary differences and carryforwards, and available tax-planning strategies in assessing the realizability of the deferred tax assets. Based on positive evidence, including the three-year cumulative positive income and the absence of any significant negative evidence, management determined that it was more likely than not that the Company's U.S. deferred tax assets would be realized except for certain deferred tax assets attributable to state net operating losses and tax credits. | |
The Company continues to maintain a valuation allowance against certain deferred tax assets attributable to state net operating losses and tax credits and certain foreign net deferred tax assets primarily in Luxembourg, Germany and China. | |
The Company operates in various tax jurisdictions and is subject to examination by tax authorities in these jurisdictions. The Company is currently under examination in several jurisdictions including Germany, Italy, Korea, the United Kingdom and the U.S. The Company anticipates that the U.S. federal income tax audit for the years 2009 through 2011 will be completed within the next twelve months. The calculation of our tax liability for unrecognized tax benefits includes dealing with uncertainties in the application of complex tax laws and regulations in various tax jurisdictions. Due to the complexity of some uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit. The settlement of an examination could result in changes in amounts attributable to us through the Tax Matters Agreement entered into with Exelis, Inc. and Xylem, Inc. Over the next twelve months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could change by approximately $84.1 due to changes in audit status, expiration of statutes of limitations and other events. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
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 earnings per share from continuing operations attributable to ITT Corporation for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||
Three Months | Nine Months | ||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Basic weighted average common shares outstanding | 91.6 | 90.4 | 91.5 | 91 | |||||||||||
Add: Dilutive impact of outstanding equity awards | 1.3 | 1.5 | 1.4 | 1.3 | |||||||||||
Diluted weighted average common shares outstanding | 92.9 | 91.9 | 92.9 | 92.3 | |||||||||||
The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2014 and 2013 because they were anti-dilutive. | |||||||||||||||
Three Months | Nine Months | ||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Anti-dilutive stock options | 0.2 | — | 0.2 | 0.3 | |||||||||||
Average exercise price | $ | 43.51 | N/A | $ | 43.51 | $ | 26.8 | ||||||||
Year of expiration | 2024 | N/A | 2024 | 2023 | |||||||||||
In addition, 0.2 of outstanding employee return on invested capital (ROIC) awards were excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2014, as the three-year performance metric related to the ROIC awards has not yet been achieved. |
RECEIVABLES_NET
RECEIVABLES, NET | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
RECEIVABLES, NET | ' | |||||||||||
RECEIVABLES, NET | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Trade accounts receivable | $ | 538.1 | $ | 463.9 | ||||||||
Notes receivable | 4.2 | 6.3 | ||||||||||
Other | 37 | 39.1 | ||||||||||
Receivables, gross | 579.3 | 509.3 | ||||||||||
Less: Allowance for doubtful accounts | (10.1 | ) | (12.6 | ) | ||||||||
Receivables, net | $ | 569.2 | $ | 496.7 | ||||||||
INVENTORIES_NET
INVENTORIES, NET | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
INVENTORIES, NET | ' | |||||||||||
INVENTORIES, NET | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Finished goods | $ | 54.9 | $ | 49.9 | ||||||||
Work in process | 74.1 | 94.8 | ||||||||||
Raw materials | 162 | 166.7 | ||||||||||
Inventoried costs related to long-term contracts | 68.3 | 85.4 | ||||||||||
Total inventory before progress payments | 359.3 | 396.8 | ||||||||||
Less: Progress payments | (46.5 | ) | (80.9 | ) | ||||||||
Inventories, net | $ | 312.8 | $ | 315.9 | ||||||||
OTHER_CURRENT_AND_NONCURRENT_A
OTHER CURRENT AND NON-CURRENT ASSETS | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||||||
OTHER CURRENT AND NON-CURRENT ASSETS | ' | |||||||||||
OTHER CURRENT AND NON-CURRENT ASSETS | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Asbestos-related current assets | $ | 100.1 | $ | 84.5 | ||||||||
Short-term investments | 67.6 | 112.9 | ||||||||||
Current deferred income taxes | 61.9 | 59.5 | ||||||||||
Prepaid income taxes | 21.7 | 23.6 | ||||||||||
Other | 53.7 | 65.1 | ||||||||||
Other current assets | $ | 305 | $ | 345.6 | ||||||||
Other employee benefit-related assets | $ | 96.3 | $ | 95.5 | ||||||||
Capitalized software costs | 18.2 | 14.6 | ||||||||||
Environmental-related assets | 7.6 | 11.7 | ||||||||||
Equity method investments | 4.7 | 4.7 | ||||||||||
Other | 19.2 | 18.4 | ||||||||||
Other non-current assets | $ | 146 | $ | 144.9 | ||||||||
PLANT_PROPERTY_AND_EQUIPMENT_N
PLANT, PROPERTY AND EQUIPMENT, NET | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||
PLANT, PROPERTY AND EQUIPMENT, NET | ' | |||||||||||
PLANT, PROPERTY AND EQUIPMENT, NET | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Land and improvements | $ | 24.9 | $ | 26.8 | ||||||||
Machinery and equipment | 853.6 | 834.5 | ||||||||||
Buildings and improvements | 226 | 211.6 | ||||||||||
Furniture, fixtures and office equipment | 74.2 | 74.6 | ||||||||||
Construction work in progress | 46.8 | 59.8 | ||||||||||
Other | 8.3 | 8.5 | ||||||||||
Plant, property and equipment, gross | 1,233.80 | 1,215.80 | ||||||||||
Less: Accumulated depreciation | (800.6 | ) | (789.6 | ) | ||||||||
Plant, property and equipment, net | $ | 433.2 | $ | 426.2 | ||||||||
Depreciation expense of $18.5 and $52.2 was recognized in the three and nine months ended September 30, 2014, respectively, and $16.4 and $46.9 was recognized in the three and nine months ended September 30, 2013, respectively. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | ' | |||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | ||||||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||||||
The following table provides a rollforward of the carrying amount of goodwill for the nine months ended September 30, 2014 by segment. | ||||||||||||||||||||||||||||||||||||
Industrial | Motion | Interconnect | Control | Total | ||||||||||||||||||||||||||||||||
Process | Technologies | Solutions | Technologies | |||||||||||||||||||||||||||||||||
Goodwill - December 31, 2013 | $ | 351 | $ | 49.8 | $ | 73.9 | $ | 185.1 | $ | 659.8 | ||||||||||||||||||||||||||
Goodwill acquired | 1.2 | — | — | — | 1.2 | |||||||||||||||||||||||||||||||
Foreign currency | (12.6 | ) | (3.8 | ) | (1.6 | ) | — | (18.0 | ) | |||||||||||||||||||||||||||
Goodwill - September 30, 2014 | $ | 339.6 | $ | 46 | $ | 72.3 | $ | 185.1 | $ | 643 | ||||||||||||||||||||||||||
Other Intangible Assets, Net | ||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net Intangibles | Gross | Accumulated Amortization | Net Intangibles | |||||||||||||||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 84.1 | $ | (36.9 | ) | $ | 47.2 | $ | 84.9 | $ | (31.9 | ) | $ | 53 | ||||||||||||||||||||||
Proprietary technology | 28.9 | (9.4 | ) | 19.5 | 30.3 | (7.6 | ) | 22.7 | ||||||||||||||||||||||||||||
Patents and other | 15.5 | (13.6 | ) | 1.9 | 16.4 | (13.0 | ) | 3.4 | ||||||||||||||||||||||||||||
Finite-lived intangible total | 128.5 | (59.9 | ) | 68.6 | 131.6 | (52.5 | ) | 79.1 | ||||||||||||||||||||||||||||
Indefinite-lived intangibles | 26.9 | — | 26.9 | 27.8 | — | 27.8 | ||||||||||||||||||||||||||||||
Other Intangible Assets | $ | 155.4 | $ | (59.9 | ) | $ | 95.5 | $ | 159.4 | $ | (52.5 | ) | $ | 106.9 | ||||||||||||||||||||||
Amortization expense related to finite-lived intangible assets was $2.5 and $8.8 for the three and nine months ended September 30, 2014, respectively, and $3.6 and $15.1 for the three and nine months ended September 30, 2013, respectively. |
ACCRUED_AND_OTHER_CURRENT_LIAB
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ' | |||||||||||
ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Compensation and other employee-related benefits | $ | 171.3 | $ | 178.5 | ||||||||
Asbestos-related liabilities | 106.4 | 85.1 | ||||||||||
Customer-related liabilities | 57 | 55.6 | ||||||||||
Accrued income taxes and other tax-related liabilities | 37.4 | 29.8 | ||||||||||
Environmental liabilities and other legal matters | 33.9 | 38.5 | ||||||||||
Accrued warranty costs | 28.4 | 28.6 | ||||||||||
Short-term loans and current maturities of long-term debt | 1.6 | 39.8 | ||||||||||
Other accrued liabilities | 48.6 | 44 | ||||||||||
Accrued liabilities | $ | 484.6 | $ | 499.9 | ||||||||
Deferred income taxes and other tax-related accruals | $ | 109.6 | $ | 116.2 | ||||||||
Environmental liabilities | 79.2 | 85.1 | ||||||||||
Compensation and other employee-related benefits | 40.4 | 43.8 | ||||||||||
Other | 36.9 | 32.7 | ||||||||||
Other non-current liabilities | $ | 266.1 | $ | 277.8 | ||||||||
DEBT
DEBT | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
DEBT | ' | |||||||||||
DEBT | ||||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Commercial Paper | $ | — | $ | 38 | ||||||||
Current maturities of long-term debt | 1.2 | 1.3 | ||||||||||
Current capital leases | 0.4 | 0.5 | ||||||||||
Short-term loans and current maturities of long-term debt | 1.6 | 39.8 | ||||||||||
Non-current maturities of long-term debt | 6.5 | 7.6 | ||||||||||
Non-current capital leases | 1.2 | 1.5 | ||||||||||
Long-term debt and capital leases | 7.7 | 9.1 | ||||||||||
Total debt and capital leases | $ | 9.3 | $ | 48.9 | ||||||||
POSTRETIREMENT_BENEFIT_PLANS
POSTRETIREMENT BENEFIT PLANS | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
POSTRETIREMENT BENEFIT PLANS | ' | |||||||||||||||||||||||||||||||||||
POSTRETIREMENT BENEFIT PLANS | ||||||||||||||||||||||||||||||||||||
The following tables provide the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Service cost | $ | 1.2 | $ | 0.5 | $ | 1.7 | $ | 1.7 | $ | 0.7 | $ | 2.4 | ||||||||||||||||||||||||
Interest cost | 3.9 | 2 | 5.9 | 3.7 | 2.1 | 5.8 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (5.1 | ) | (0.2 | ) | (5.3 | ) | (4.9 | ) | (0.2 | ) | (5.1 | ) | ||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 0.1 | (1.5 | ) | (1.4 | ) | 0.2 | (0.1 | ) | 0.1 | |||||||||||||||||||||||||||
Amortization of net actuarial loss | 1.6 | 0.8 | 2.4 | 2.2 | 1.1 | 3.3 | ||||||||||||||||||||||||||||||
Net periodic benefit cost | 1.7 | 1.6 | 3.3 | 2.9 | 3.6 | 6.5 | ||||||||||||||||||||||||||||||
Loss from curtailment | — | — | — | 0.7 | — | 0.7 | ||||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 1.7 | $ | 1.6 | $ | 3.3 | $ | 3.6 | $ | 3.6 | $ | 7.2 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30 | Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Service cost | $ | 3.7 | $ | 1.4 | $ | 5.1 | $ | 5.1 | $ | 2.2 | $ | 7.3 | ||||||||||||||||||||||||
Interest cost | 11.7 | 5.9 | 17.6 | 11 | 6.2 | 17.2 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (15.5 | ) | (0.5 | ) | (16.0 | ) | (14.7 | ) | (0.5 | ) | (15.2 | ) | ||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 0.5 | (4.5 | ) | (4.0 | ) | 0.6 | (0.3 | ) | 0.3 | |||||||||||||||||||||||||||
Amortization of net actuarial loss | 4.7 | 2.3 | 7 | 6.7 | 3.3 | 10 | ||||||||||||||||||||||||||||||
Net periodic benefit cost | 5.1 | 4.6 | 9.7 | 8.7 | 10.9 | 19.6 | ||||||||||||||||||||||||||||||
Loss from curtailment | — | — | — | 0.7 | — | 0.7 | ||||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 5.1 | $ | 4.6 | $ | 9.7 | $ | 9.4 | $ | 10.9 | $ | 20.3 | ||||||||||||||||||||||||
In the third quarter of 2014, management approved and communicated changes to one of our other employee-related benefit plans, principally the reduction of certain future medical benefits. We remeasured the projected benefit obligation for the impacted plan on September 30, 2014 for this amendment resulting in a decrease of $28.8. | ||||||||||||||||||||||||||||||||||||
During the third quarter of 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. As a result, we remeasured the projected benefit obligations and plan assets for certain plans on September 30, 2013. The remeasurement resulted in a decrease to ITT's net pension liability of $4.4 and a curtailment loss of $0.7 as of and for the quarter ended September 30, 2013. | ||||||||||||||||||||||||||||||||||||
During the three months ended September 30, 2014 and 2013, we made contributions to our global postretirement plans of $2.9 and $3.0, respectively. During the nine months ended September 30, 2014 and 2013, we made contributions to our global postretirement plans of $7.7 and $8.8, respectively. We do not expect to make material contributions to our global pension plans during the remainder of 2014. | ||||||||||||||||||||||||||||||||||||
During the three months ended September 30, 2014 and 2013, we amortized $0.8 and $(0.4), net of tax, respectively, from accumulated other comprehensive income into earnings related to prior service cost and net actuarial loss. Similarly, during the nine months ended September 30, 2014 and 2013, we amortized $2.1 and $6.5, net of tax, into earnings, respectively. No other reclassifications from accumulated other comprehensive income into earnings were recognized during any of the presented periods. |
LONGTERM_INCENTIVE_EMPLOYEE_CO
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | ' | |||||||||||||||
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | ||||||||||||||||
Our long-term incentive plan (LTIP) is comprised of three components: non-qualified stock options (NQOs), restricted stock units (RSUs), and performance units (PSUs). The majority of RSUs settle in shares; however RSUs granted to international employees settle in cash. The PSU awards are accounted for as two distinct awards based on both a relative total shareholder return (TSR) performance metric component and a return on invested capital (ROIC) performance metric component. Each component is equally weighted and settled in shares dependent upon the performance achieved following a three-year performance period. TSR awards granted prior to 2013 settle in cash. Awards that settle in cash are accounted for as liability-based awards. | ||||||||||||||||
LTIP costs are primarily recorded within general and administrative expenses, and are reduced by an estimated forfeiture rate. The following table provides the components of these costs for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Equity-based awards | $ | 4 | $ | 3.5 | $ | 10.8 | $ | 9.7 | ||||||||
Liability-based awards | 1 | 1.4 | 2.9 | 2.2 | ||||||||||||
Total share-based compensation expense | $ | 5 | $ | 4.9 | $ | 13.7 | $ | 11.9 | ||||||||
At September 30, 2014, there was $22.5 of estimated unrecognized compensation cost related to unvested equity-based awards that is expected to be recognized ratably over a weighted-average period of 2.1 years. Total estimated unrecognized compensation cost projected to be incurred for unvested liability-based awards as of September 30, 2014 was $3.4; this is expected to be recognized ratably over a weighted-average period of 1.6 years. | ||||||||||||||||
Year-to-Date 2014 LTIP Activity | ||||||||||||||||
The majority of our LTIP activity occurs during the first quarter of each year. The majority of LTIP grants occurred on March 4, 2014. During the nine months ended September 30, 2014, we granted the following LTIP awards as provided in the table below: | ||||||||||||||||
# of Awards Granted | Grant Date Fair Value | |||||||||||||||
NQOs | 0.2 | $ | 11.93 | |||||||||||||
RSUs | 0.3 | $ | 43.52 | |||||||||||||
TSR | 0.1 | $ | 48.78 | |||||||||||||
ROIC | 0.1 | $ | 42.2 | |||||||||||||
The NQOs vest either on the completion of a three-year service period or annually in three equal installments, as determined by employee level, and have a ten-year expiration period. RSUs, TSR awards, and ROIC awards vest on the completion of a three-year service period. | ||||||||||||||||
During the nine months ended September 30, 2014 and 2013, 0.8 and 1.7 stock options were exercised resulting in proceeds of $14.3 and $28.0, respectively. In addition, during the nine months of 2014 and 2013, 0.3 restricted stock units vested and were issued. | ||||||||||||||||
The fair value of each NQO grant was estimated on the date of grant using a binomial lattice pricing model that incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following table details the weighted average assumptions used to measure fair value and the resulting grant date fair value of NQOs granted during the first nine months of 2014. | ||||||||||||||||
Dividend yield | 1 | % | ||||||||||||||
Expected volatility | 29.6 | % | ||||||||||||||
Expected life | 5.8 years | |||||||||||||||
Risk-free rates | 1.8 | % | ||||||||||||||
Grant date fair value | $ | 11.93 | ||||||||||||||
Expected volatility for NQOs granted during 2014 were determined using a combination of ITT's implied volatility and the average historical volatility over a ten year period for a peer group of companies that closely align to ITT. Historical data is used to estimate option exercise and employee termination behavior within the valuation model. Option characteristics, such as vesting terms, are considered separately for valuation purposes. 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 options granted with differing vesting terms. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of option grant. | ||||||||||||||||
The grant date fair value of RSUs corresponds to the closing price of ITT common stock on the date of grant. | ||||||||||||||||
The grant date 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 1.0% was assumed based on ITT's annualized dividend payment of $0.44 per share and the March 4, 2014 closing stock price of $43.52. 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 grant date fair value of TSR awards granted in 2013 and 2014 were 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 4, 2014, 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 2013 average closing stock price) and the grant date was reflected in the valuation. A dividend yield of 1.0% was assumed based on ITT's annualized dividend payment of $0.44 per share and the March 4, 2014 closing stock price of $43.52. | ||||||||||||||||
The fair value of TSR awards granted prior to 2013 is remeasured on a quarterly basis and corresponds to ITT's total shareholder return as compared to the total shareholder return of companies within the S&P 400 Capital Goods Index, subject to a multiplier which includes a maximum and minimum payout. The relative performance ranking calculated is adjusted to reflect expected volatility over the remaining term of the award using a Monte Carlo simulation. |
CAPITAL_STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2014 | |
Equity [Abstract] | ' |
CAPITAL STOCK | ' |
CAPITAL STOCK | |
On October 27, 2006, a three-year $1 billion 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. We repurchased 0.2 and 0.4 shares of common stock for $10.0 and $20.0 during the three and nine months ended September 30, 2014. We repurchased 3.1 shares of common stock for $85.2 during the nine months ended September 30, 2013, respectively. We did not repurchase any shares of common stock during the three months ended September 30, 2013. To date, under the 2006 Share Repurchase Program, the Company has repurchased 15.7 shares for $649.3. | |
Separate from the 2006 Share Repurchase Program, the Company repurchased 0.1 shares and 0.1 shares for an aggregate price of $5.5 and $2.8, during the nine months ended September 30, 2014 and 2013, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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 and acquisitions or divestitures. We will continue to aggressively defend all such 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 a 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 former 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 September 30, 2014, there were approximately 50 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: | ||||||||||||||||
For the Nine Months Ended September 30 (in thousands) | 2014 | 2013 | ||||||||||||||
Pending claims – Beginning | 79 | 96 | ||||||||||||||
New claims | 3 | 4 | ||||||||||||||
Settlements | (2 | ) | (3 | ) | ||||||||||||
Dismissals(a) | (12 | ) | (20 | ) | ||||||||||||
Pending claims – Ending | 68 | 77 | ||||||||||||||
Pending inactive claims(a) | 18 | 18 | ||||||||||||||
Pending active claims | 50 | 59 | ||||||||||||||
(a) | The 2013 dismissals reported in the table above include the dismissal of approximately 12 thousand claims, that were considered pending inactive claims. There were no inactive claims dismissed during 2014. Inactive claims represent pending claims in Mississippi filed in 2004 or prior, 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 can fluctuate significantly from period to period. ITT expects more asbestos-related suits will be filed in the future, and ITT will continue to aggressively defend or seek a reasonable resolution, as appropriate. | ||||||||||||||||
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 of this and other factors, 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 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 long-term policy buyout agreements. The agreements are designed to facilitate an orderly resolution and collection of ITT's insurance portfolio and to mitigate issues that insurers may raise regarding their responsibility to respond to claims. These agreements, in the aggregate, represent approximately 55% of the recorded asbestos-related asset as of September 30, 2014. Under coverage-in-place agreements, an insurer's policies remain in force and the insurer undertakes to provide coverage for the Company's pending and future asbestos claims on specified terms and conditions. Insurance payments under coverage-in-place agreements are made to the Company as asbestos claims are settled or adjudicated. The Company's buyout agreements provide an agreed upon amount of available coverage for future asbestos claims under the subject policies to be paid to a Qualified Settlement Fund (QSF) on a specific schedule as agreed upon by the Company and its insurer. However, assets in the QSF are only available and distributed when qualifying asbestos expenditures are submitted for reimbursement as defined in the QSF agreement. Therefore, recovery of insurance reimbursements under these types of agreements are dependent on the timing of the payment of the liability and, consistent with the asbestos liability, have not been discounted to present value. | ||||||||||||||||
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 additional costs may be material, 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 annual asbestos remeasurement with the assistance of outside consultants to review and update the underlying assumptions used in our asbestos liability and related asset estimates. In each remeasurement, the underlying assumptions are updated based on our actual experience since our previous annual remeasurement and we reassess the appropriate reference period used in determining each assumption and our expectations regarding future conditions, including inflation. | ||||||||||||||||
Based on the results of this study, in the third quarter of 2014, we decreased our estimated undiscounted asbestos liability, including legal fees, by $42.8, reflecting a decrease in costs 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. The decrease in our estimated liability 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 dismissed claims versus settled claims. These favorable factors were offset in part by an increasing number of cases expected to be adjudicated. Further, in the third quarter of 2014, the Company increased its estimated asbestos-related assets by $16.0, principally due to the estimated probable recoveries of certain liabilities resulting from the annual study. | ||||||||||||||||
In the third quarter of 2013, ITT reached an agreement-in-principle (Settlement) with an insurer to settle responsibility for multiple categories of claims, including future claims. Under the terms of the Settlement, the insurer agreed to a specified series of payments through 2018 to fully exhaust its primary policies issued to ITT. The Settlement resulted in a net benefit of $31.0 during the quarter ended September 30, 2013 with a corresponding increase in the asbestos-related asset. | ||||||||||||||||
In addition to the charges associated with our annual remeasurement, we record a net asbestos charge each quarter to maintain a rolling 10-year forecast period. The table below summarizes the total net asbestos charges for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Asbestos provision | $ | 16.3 | $ | 15.1 | $ | 48 | $ | 47 | ||||||||
Asbestos remeasurement, net | (58.8 | ) | 0.5 | (58.8 | ) | 0.5 | ||||||||||
Settlement agreement | — | (31.0 | ) | — | (31.0 | ) | ||||||||||
Asbestos-related (benefit) costs, net | $ | (42.5 | ) | $ | (15.4 | ) | $ | (10.8 | ) | $ | 16.5 | |||||
Changes in Financial Position | ||||||||||||||||
The Company's estimated asbestos exposure, net of expected recoveries, for the resolution of all pending claims and claims estimated to be filed in the next 10 years was $727.2 and $746.9 as of September 30, 2014 and December 31, 2013, respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the nine months ended September 30, 2014. | ||||||||||||||||
Liability | Asset | Net | ||||||||||||||
Balance as of December 31, 2013 | $ | 1,264.70 | $ | 517.8 | $ | 746.9 | ||||||||||
Asbestos provision | 55.5 | 7.5 | 48 | |||||||||||||
Asbestos remeasurement, net | (42.8 | ) | 16 | (58.8 | ) | |||||||||||
Net cash and other activity | (52.9 | ) | (44.0 | ) | (8.9 | ) | ||||||||||
Balance as of September 30, 2014 | $ | 1,224.50 | $ | 497.3 | $ | 727.2 | ||||||||||
Current portion | $ | 106.4 | $ | 100.1 | ||||||||||||
Noncurrent portion | $ | 1,118.10 | $ | 397.2 | ||||||||||||
Future Cash Flows | ||||||||||||||||
We estimate that we will be able to recover 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 expected to exhaust within 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 25%. 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 2028. | ||||||||||||||||
Annual net cash outflows, net of tax benefits, are projected to average $15 to $25 over the next five years, as compared to an average of $14 over the past three annual periods, and increase to an average of approximately $40 to $50, 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 nine months ended September 30, 2014. | ||||||||||||||||
Liability | Asset | Net | ||||||||||||||
Balance as of December 31, 2013 | $ | 94.6 | $ | 11.7 | $ | 82.9 | ||||||||||
Change in estimates for pre-existing accruals: | ||||||||||||||||
Continuing operations | 1.3 | (3.3 | ) | 4.6 | ||||||||||||
Discontinued operations | 2.4 | (0.6 | ) | 3 | ||||||||||||
Accruals added during the period for new matters | 0.1 | — | 0.1 | |||||||||||||
Net cash activity | (9.4 | ) | (0.2 | ) | (9.2 | ) | ||||||||||
Foreign currency | (0.2 | ) | — | (0.2 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 88.8 | $ | 7.6 | $ | 81.2 | ||||||||||
The following table illustrates the reasonably possible range of estimated liability, and number of active sites for environmental matters, at September 30, 2014. | ||||||||||||||||
Low-end estimate | $ | 68.5 | ||||||||||||||
High end estimate | $ | 156.5 | ||||||||||||||
Number of active environmental investigation and remediation sites | 54 | |||||||||||||||
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. | ||||||||||||||||
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. The Company continues to seek appropriate resolution with the various defendants in the case. | ||||||||||||||||
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 (a/k/a Pacific Employers Insurance Company or PEIC), 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, D. Conn., 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. The Connecticut Court has now lifted the stay and discovery in the case is proceeding. 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. The Company and PEIC have agreed that the primary policies are exhausted and PEIC will make structured payments over time to a Qualified Settlement Fund (QSF) to be used for asbestos-related costs. The excess insurers have challenged the exhaustion of the PEIC primary policies and a trial to determine whether the policies were properly exhausted is scheduled for November 2014. The Company continues to engage other defendants in settlement negotiations as appropriate. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
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, 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 | Operating Margin | ||||||||||||||||||||||
Three Months Ended September 30 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Industrial Process | $292.70 | $285.00 | $31.00 | $27.70 | 10.60% | 9.70% | ||||||||||||||||||
Motion Technologies | 197 | 176.8 | 36.5 | 24.8 | 18.50% | 14.00% | ||||||||||||||||||
Interconnect Solutions | 98.4 | 103.9 | 11.2 | 10.8 | 11.40% | 10.40% | ||||||||||||||||||
Control Technologies | 70.7 | 69.9 | 15.7 | 13.7 | 22.20% | 19.60% | ||||||||||||||||||
Total segment results | 658.8 | 635.6 | 94.4 | 77 | 14.40% | 12.10% | ||||||||||||||||||
Asbestos-related benefit, net | — | — | 42.5 | 15.4 | — | — | ||||||||||||||||||
Eliminations / Other corporate costs | -1.7 | -1.6 | -17.2 | -15.4 | — | — | ||||||||||||||||||
Total Eliminations / Corporate and Other costs | -1.7 | -1.6 | 25.3 | — | — | — | ||||||||||||||||||
Total | $657.10 | $634.00 | $119.70 | $77.00 | 18.20% | 12.10% | ||||||||||||||||||
Revenue | Operating Income | Operating Margin | ||||||||||||||||||||||
Nine Months Ended September 30 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Industrial Process | $ | 867.6 | $ | 810.5 | $ | 80.7 | $ | 78.3 | 9.3 | % | 9.7 | % | ||||||||||||
Motion Technologies | 612.8 | 541.4 | 111.4 | 81.1 | 18.2 | % | 15 | % | ||||||||||||||||
Interconnect Solutions | 302.1 | 295 | 20.5 | 16.2 | 6.8 | % | 5.5 | % | ||||||||||||||||
Control Technologies | 217.3 | 208.7 | 47.4 | 43.5 | 21.8 | % | 20.8 | % | ||||||||||||||||
Total segment results | 1,999.80 | 1,855.60 | 260 | 219.1 | 13 | % | 11.8 | % | ||||||||||||||||
Asbestos-related (benefit) costs, net | — | — | 10.8 | (16.5 | ) | — | — | |||||||||||||||||
Eliminations / Other corporate costs | (5.2 | ) | (4.2 | ) | (48.3 | ) | (47.0 | ) | — | — | ||||||||||||||
Total Eliminations / Corporate and Other costs | (5.2 | ) | (4.2 | ) | (37.5 | ) | (63.5 | ) | — | — | ||||||||||||||
Total | $ | 1,994.60 | $ | 1,851.40 | $ | 222.5 | $ | 155.6 | 11.2 | % | 8.4 | % | ||||||||||||
Total Assets | Capital | Depreciation & | ||||||||||||||||||||||
Expenditures | Amortization | |||||||||||||||||||||||
Nine Months Ended September 30 | 2014 | 2013(a) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Industrial Process | $ | 1,168.70 | $ | 1,132.70 | $ | 26.5 | $ | 29.6 | $ | 21.3 | $ | 24.5 | ||||||||||||
Motion Technologies | 484.2 | 466.2 | 32.5 | 13.4 | 21.9 | 22.4 | ||||||||||||||||||
Interconnect Solutions | 366.4 | 364.6 | 8.5 | 6.6 | 8.9 | 7.8 | ||||||||||||||||||
Control Technologies | 341.4 | 344.7 | 1.3 | 2.7 | 7.5 | 7.4 | ||||||||||||||||||
Corporate and Other | 1,346.00 | 1,432.00 | 5.6 | 5.9 | 4.6 | 4.4 | ||||||||||||||||||
Total | $ | 3,706.70 | $ | 3,740.20 | $ | 74.4 | $ | 58.2 | $ | 64.2 | $ | 66.5 | ||||||||||||
(a) | Amounts reflect balances as of December 31, 2013. |
DESCRIPTION_OF_BUSINESS_AND_BA1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [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 engineered fluid process equipment; Motion Technologies, consisting of brake pads, shock absorbers, and damping technologies; Interconnect Solutions, consisting of highly specialized connector products; and Control Technologies, consisting of vibration and shock isolation, motion control, and fluid handling products. Financial information for our segments is presented in Note 17, “Segment Information.” | |
Basis of Accounting | ' |
Basis of Presentation | |
The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in ITT's Annual Report on Form 10-K for the year ended December 31, 2013 (2013 Annual Report) in preparing these unaudited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2013 Annual Report. | |
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. | |
ITT's quarterly financial periods end on the Saturday closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31st. For ease of presentation, the quarterly financial statements included herein are described as ending on the last day of the calendar quarter. | |
Revenue Recognition, Percentage-of-Completion Method [Policy Text Block] | ' |
Summary of Significant Accounting Policies | |
Due to an increase in the number and size of complex long-term industrial pump design and build contracts, an update to the revenue recognition accounting policy disclosed in the 2013 Annual Report is provided below: | |
Revenue Recognition | |
We recognize revenue for certain long-term design and build projects using the percentage-of-completion method, based upon the percentage of costs incurred to total projected costs. Revenue and profit recognized under the percentage-of-completion method are based on management’s estimates. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of receivables, net. During the performance of long-term sales contracts, estimated final contract prices and costs are reviewed periodically and revisions are made as required and recorded in income in the period in which they are determined. Provisions for estimated losses on uncompleted long-term sales contracts are made in the period in which such losses are determined and are recorded as a component of costs of revenue. We continue to apply the completed-contract method of accounting for smaller design and build contracts, including those of short-term duration. Our results of operations and financial position would not vary materially had we used the percentage-of-completion method for these types of contracts. |
RECENT_ACCOUNTING_PRONOUNCEMEN1
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Recent Acconting Pronouncements [Abstract] | ' |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recently Adopted Accounting Pronouncements | |
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 did not 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 did not 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 this guidance on January 1, 2014 did not have a material impact to ITT's financial statements. | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' |
Accounting Pronouncements Not Yet Adopted | |
In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Adoption of the amendments is required in the first quarter of fiscal 2017. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. ITT is currently evaluating the impact of these amendments and the transition alternatives on ITT's financial statements. | |
In April 2014, the FASB issued guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and other disposals that do not meet the definition of a discontinued operation. The new guidance defines a discontinued operation as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. The new guidance will become effective on January 1, 2015, with early adoption permitted. While we do not expect a material impact on ITT’s financial statements upon adoption, the effects on future periods will depend upon the nature and significance of future disposals. |
RESTRUCTURING_ACTIONS_RESTRUCT1
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring Cost [Line Items] | ' | |||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Income Statements for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Severance costs | $ | 2.2 | $ | 1.2 | $ | 18.8 | $ | 9.9 | ||||||||
Asset write-offs | — | 0.5 | 1.3 | 0.5 | ||||||||||||
Other restructuring costs | 0.9 | — | 2.1 | 0.2 | ||||||||||||
Total restructuring costs | $ | 3.1 | $ | 1.7 | $ | 22.2 | $ | 10.6 | ||||||||
By segment: | ||||||||||||||||
Industrial Process | $ | 1.6 | $ | 0.4 | $ | 4.5 | $ | 1.1 | ||||||||
Motion Technologies | 0.1 | 0.6 | 0.3 | 3.1 | ||||||||||||
Interconnect Solutions | 0.4 | 0.6 | 16.4 | 6 | ||||||||||||
Control Technologies | — | — | — | — | ||||||||||||
Corporate and Other | 1 | 0.1 | 1 | 0.4 | ||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||||||
The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the nine months ended September 30, 2014 and 2013. | ||||||||||||||||
For the Nine Months Ended September 30 | 2014 | 2013 | ||||||||||||||
Restructuring accruals - beginning balance | $ | 14.7 | $ | 7.8 | ||||||||||||
Restructuring costs | 22.2 | 10.6 | ||||||||||||||
Cash payments | (13.0 | ) | (13.2 | ) | ||||||||||||
Asset write-offs | (1.3 | ) | (0.5 | ) | ||||||||||||
Foreign exchange translation and other | (0.5 | ) | — | |||||||||||||
Restructuring accrual - ending balance | $ | 22.1 | $ | 4.7 | ||||||||||||
By accrual type: | ||||||||||||||||
Severance accrual | $ | 20 | $ | 4.7 | ||||||||||||
Facility carrying and other costs accrual | 2.1 | — | ||||||||||||||
Interconnect Solutions [Member] | ' | |||||||||||||||
Restructuring Cost [Line Items] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | ' | |||||||||||||||
The following table provides a rollforward of the restructuring accrual associated with the ICS turnaround activities. | ||||||||||||||||
For the Nine Months Ended September 30 | 2014 | |||||||||||||||
Restructuring accruals - beginning balance | $ | 8 | ||||||||||||||
Restructuring costs | 16.4 | |||||||||||||||
Cash payments | (8.0 | ) | ||||||||||||||
Asset write-offs | (1.3 | ) | ||||||||||||||
Restructuring accruals - ending balance | $ | 15.1 | ||||||||||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2014 | |||||||||||||||
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 earnings per share from continuing operations attributable to ITT Corporation for the three and nine months ended September 30, 2014 and 2013. | |||||||||||||||
Three Months | Nine Months | ||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Basic weighted average common shares outstanding | 91.6 | 90.4 | 91.5 | 91 | |||||||||||
Add: Dilutive impact of outstanding equity awards | 1.3 | 1.5 | 1.4 | 1.3 | |||||||||||
Diluted weighted average common shares outstanding | 92.9 | 91.9 | 92.9 | 92.3 | |||||||||||
Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings | ' | ||||||||||||||
The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2014 and 2013 because they were anti-dilutive. | |||||||||||||||
Three Months | Nine Months | ||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | |||||||||||
Anti-dilutive stock options | 0.2 | — | 0.2 | 0.3 | |||||||||||
Average exercise price | $ | 43.51 | N/A | $ | 43.51 | $ | 26.8 | ||||||||
Year of expiration | 2024 | N/A | 2024 | 2023 | |||||||||||
RECEIVABLES_NET_Tables
RECEIVABLES, NET (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Receivables [Abstract] | ' | |||||||||||
RECEIVABLES, NET | ' | |||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Trade accounts receivable | $ | 538.1 | $ | 463.9 | ||||||||
Notes receivable | 4.2 | 6.3 | ||||||||||
Other | 37 | 39.1 | ||||||||||
Receivables, gross | 579.3 | 509.3 | ||||||||||
Less: Allowance for doubtful accounts | (10.1 | ) | (12.6 | ) | ||||||||
Receivables, net | $ | 569.2 | $ | 496.7 | ||||||||
INVENTORIES_NET_Tables
INVENTORIES, NET (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Inventory Disclosure [Abstract] | ' | |||||||||||
Inventories, Net | ' | |||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Finished goods | $ | 54.9 | $ | 49.9 | ||||||||
Work in process | 74.1 | 94.8 | ||||||||||
Raw materials | 162 | 166.7 | ||||||||||
Inventoried costs related to long-term contracts | 68.3 | 85.4 | ||||||||||
Total inventory before progress payments | 359.3 | 396.8 | ||||||||||
Less: Progress payments | (46.5 | ) | (80.9 | ) | ||||||||
Inventories, net | $ | 312.8 | $ | 315.9 | ||||||||
OTHER_CURRENT_AND_NONCURRENT_A1
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||||||
Other Current and Non Current Assets | ' | |||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Asbestos-related current assets | $ | 100.1 | $ | 84.5 | ||||||||
Short-term investments | 67.6 | 112.9 | ||||||||||
Current deferred income taxes | 61.9 | 59.5 | ||||||||||
Prepaid income taxes | 21.7 | 23.6 | ||||||||||
Other | 53.7 | 65.1 | ||||||||||
Other current assets | $ | 305 | $ | 345.6 | ||||||||
Other employee benefit-related assets | $ | 96.3 | $ | 95.5 | ||||||||
Capitalized software costs | 18.2 | 14.6 | ||||||||||
Environmental-related assets | 7.6 | 11.7 | ||||||||||
Equity method investments | 4.7 | 4.7 | ||||||||||
Other | 19.2 | 18.4 | ||||||||||
Other non-current assets | $ | 146 | $ | 144.9 | ||||||||
PLANT_PROPERTY_AND_EQUIPMENT_N1
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||||||
Plant, Property and Equipment, Net | ' | |||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Land and improvements | $ | 24.9 | $ | 26.8 | ||||||||
Machinery and equipment | 853.6 | 834.5 | ||||||||||
Buildings and improvements | 226 | 211.6 | ||||||||||
Furniture, fixtures and office equipment | 74.2 | 74.6 | ||||||||||
Construction work in progress | 46.8 | 59.8 | ||||||||||
Other | 8.3 | 8.5 | ||||||||||
Plant, property and equipment, gross | 1,233.80 | 1,215.80 | ||||||||||
Less: Accumulated depreciation | (800.6 | ) | (789.6 | ) | ||||||||
Plant, property and equipment, net | $ | 433.2 | $ | 426.2 | ||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Changes in the Carrying Amount of Goodwill | ' | |||||||||||||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||||||||||||||
The following table provides a rollforward of the carrying amount of goodwill for the nine months ended September 30, 2014 by segment. | ||||||||||||||||||||||||||||||||||||
Industrial | Motion | Interconnect | Control | Total | ||||||||||||||||||||||||||||||||
Process | Technologies | Solutions | Technologies | |||||||||||||||||||||||||||||||||
Goodwill - December 31, 2013 | $ | 351 | $ | 49.8 | $ | 73.9 | $ | 185.1 | $ | 659.8 | ||||||||||||||||||||||||||
Goodwill acquired | 1.2 | — | — | — | 1.2 | |||||||||||||||||||||||||||||||
Foreign currency | (12.6 | ) | (3.8 | ) | (1.6 | ) | — | (18.0 | ) | |||||||||||||||||||||||||||
Goodwill - September 30, 2014 | $ | 339.6 | $ | 46 | $ | 72.3 | $ | 185.1 | $ | 643 | ||||||||||||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||||||||||||||
Other Intangible Assets, Net | ||||||||||||||||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net Intangibles | Gross | Accumulated Amortization | Net Intangibles | |||||||||||||||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 84.1 | $ | (36.9 | ) | $ | 47.2 | $ | 84.9 | $ | (31.9 | ) | $ | 53 | ||||||||||||||||||||||
Proprietary technology | 28.9 | (9.4 | ) | 19.5 | 30.3 | (7.6 | ) | 22.7 | ||||||||||||||||||||||||||||
Patents and other | 15.5 | (13.6 | ) | 1.9 | 16.4 | (13.0 | ) | 3.4 | ||||||||||||||||||||||||||||
Finite-lived intangible total | 128.5 | (59.9 | ) | 68.6 | 131.6 | (52.5 | ) | 79.1 | ||||||||||||||||||||||||||||
Indefinite-lived intangibles | 26.9 | — | 26.9 | 27.8 | — | 27.8 | ||||||||||||||||||||||||||||||
Other Intangible Assets | $ | 155.4 | $ | (59.9 | ) | $ | 95.5 | $ | 159.4 | $ | (52.5 | ) | $ | 106.9 | ||||||||||||||||||||||
ACCRUED_AND_OTHER_CURRENT_LIAB1
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||
Accrued Liabilities and Other Non-Current Liabilities | ' | |||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Compensation and other employee-related benefits | $ | 171.3 | $ | 178.5 | ||||||||
Asbestos-related liabilities | 106.4 | 85.1 | ||||||||||
Customer-related liabilities | 57 | 55.6 | ||||||||||
Accrued income taxes and other tax-related liabilities | 37.4 | 29.8 | ||||||||||
Environmental liabilities and other legal matters | 33.9 | 38.5 | ||||||||||
Accrued warranty costs | 28.4 | 28.6 | ||||||||||
Short-term loans and current maturities of long-term debt | 1.6 | 39.8 | ||||||||||
Other accrued liabilities | 48.6 | 44 | ||||||||||
Accrued liabilities | $ | 484.6 | $ | 499.9 | ||||||||
Deferred income taxes and other tax-related accruals | $ | 109.6 | $ | 116.2 | ||||||||
Environmental liabilities | 79.2 | 85.1 | ||||||||||
Compensation and other employee-related benefits | 40.4 | 43.8 | ||||||||||
Other | 36.9 | 32.7 | ||||||||||
Other non-current liabilities | $ | 266.1 | $ | 277.8 | ||||||||
DEBT_DEBT_Tables
DEBT DEBT (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Outstanding Debt | ' | |||||||||||
September 30, | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Commercial Paper | $ | — | $ | 38 | ||||||||
Current maturities of long-term debt | 1.2 | 1.3 | ||||||||||
Current capital leases | 0.4 | 0.5 | ||||||||||
Short-term loans and current maturities of long-term debt | 1.6 | 39.8 | ||||||||||
Non-current maturities of long-term debt | 6.5 | 7.6 | ||||||||||
Non-current capital leases | 1.2 | 1.5 | ||||||||||
Long-term debt and capital leases | 7.7 | 9.1 | ||||||||||
Total debt and capital leases | $ | 9.3 | $ | 48.9 | ||||||||
POSTRETIREMENT_BENEFIT_PLANS_T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans | ' | |||||||||||||||||||||||||||||||||||
The following tables provide the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Service cost | $ | 1.2 | $ | 0.5 | $ | 1.7 | $ | 1.7 | $ | 0.7 | $ | 2.4 | ||||||||||||||||||||||||
Interest cost | 3.9 | 2 | 5.9 | 3.7 | 2.1 | 5.8 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (5.1 | ) | (0.2 | ) | (5.3 | ) | (4.9 | ) | (0.2 | ) | (5.1 | ) | ||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 0.1 | (1.5 | ) | (1.4 | ) | 0.2 | (0.1 | ) | 0.1 | |||||||||||||||||||||||||||
Amortization of net actuarial loss | 1.6 | 0.8 | 2.4 | 2.2 | 1.1 | 3.3 | ||||||||||||||||||||||||||||||
Net periodic benefit cost | 1.7 | 1.6 | 3.3 | 2.9 | 3.6 | 6.5 | ||||||||||||||||||||||||||||||
Loss from curtailment | — | — | — | 0.7 | — | 0.7 | ||||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 1.7 | $ | 1.6 | $ | 3.3 | $ | 3.6 | $ | 3.6 | $ | 7.2 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||||||||
Nine Months Ended September 30 | Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Service cost | $ | 3.7 | $ | 1.4 | $ | 5.1 | $ | 5.1 | $ | 2.2 | $ | 7.3 | ||||||||||||||||||||||||
Interest cost | 11.7 | 5.9 | 17.6 | 11 | 6.2 | 17.2 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (15.5 | ) | (0.5 | ) | (16.0 | ) | (14.7 | ) | (0.5 | ) | (15.2 | ) | ||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 0.5 | (4.5 | ) | (4.0 | ) | 0.6 | (0.3 | ) | 0.3 | |||||||||||||||||||||||||||
Amortization of net actuarial loss | 4.7 | 2.3 | 7 | 6.7 | 3.3 | 10 | ||||||||||||||||||||||||||||||
Net periodic benefit cost | 5.1 | 4.6 | 9.7 | 8.7 | 10.9 | 19.6 | ||||||||||||||||||||||||||||||
Loss from curtailment | — | — | — | 0.7 | — | 0.7 | ||||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 5.1 | $ | 4.6 | $ | 9.7 | $ | 9.4 | $ | 10.9 | $ | 20.3 | ||||||||||||||||||||||||
LONGTERM_INCENTIVE_EMPLOYEE_CO1
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
Long-Term Incentive Employee Compensation Costs | ' | |||||||||||||||
The following table provides the components of these costs for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
For the Periods Ended September 30 | 2014 | 2013 | 2014 | 2013 | ||||||||||||
Equity-based awards | $ | 4 | $ | 3.5 | $ | 10.8 | $ | 9.7 | ||||||||
Liability-based awards | 1 | 1.4 | 2.9 | 2.2 | ||||||||||||
Total share-based compensation expense | $ | 5 | $ | 4.9 | $ | 13.7 | $ | 11.9 | ||||||||
Summary of Long-Term Incentive Plan Award Grants during year | ' | |||||||||||||||
The majority of our LTIP activity occurs during the first quarter of each year. The majority of LTIP grants occurred on March 4, 2014. During the nine months ended September 30, 2014, we granted the following LTIP awards as provided in the table below: | ||||||||||||||||
# of Awards Granted | Grant Date Fair Value | |||||||||||||||
NQOs | 0.2 | $ | 11.93 | |||||||||||||
RSUs | 0.3 | $ | 43.52 | |||||||||||||
TSR | 0.1 | $ | 48.78 | |||||||||||||
ROIC | 0.1 | $ | 42.2 | |||||||||||||
Weighted Average Grant Date Fair Value Assumptions | ' | |||||||||||||||
The following table details the weighted average assumptions used to measure fair value and the resulting grant date fair value of NQOs granted during the first nine months of 2014. | ||||||||||||||||
Dividend yield | 1 | % | ||||||||||||||
Expected volatility | 29.6 | % | ||||||||||||||
Expected life | 5.8 years | |||||||||||||||
Risk-free rates | 1.8 | % | ||||||||||||||
Grant date fair value | $ | 11.93 | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||
Product Liability Contingencies [Table Text Block] | ' | |||||||||||||||
As of September 30, 2014, there were approximately 50 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: | ||||||||||||||||
For the Nine Months Ended September 30 (in thousands) | 2014 | 2013 | ||||||||||||||
Pending claims – Beginning | 79 | 96 | ||||||||||||||
New claims | 3 | 4 | ||||||||||||||
Settlements | (2 | ) | (3 | ) | ||||||||||||
Dismissals(a) | (12 | ) | (20 | ) | ||||||||||||
Pending claims – Ending | 68 | 77 | ||||||||||||||
Pending inactive claims(a) | 18 | 18 | ||||||||||||||
Pending active claims | 50 | 59 | ||||||||||||||
(a) | The 2013 dismissals reported in the table above include the dismissal of approximately 12 thousand claims, that were considered pending inactive claims. There were no inactive claims dismissed during 2014. Inactive claims represent pending claims in Mississippi filed in 2004 or prior, 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. | |||||||||||||||
Net Asbestos Charges [Table Text Block] | ' | |||||||||||||||
The table below summarizes the total net asbestos charges for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Three Months | Nine Months | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Asbestos provision | $ | 16.3 | $ | 15.1 | $ | 48 | $ | 47 | ||||||||
Asbestos remeasurement, net | (58.8 | ) | 0.5 | (58.8 | ) | 0.5 | ||||||||||
Settlement agreement | — | (31.0 | ) | — | (31.0 | ) | ||||||||||
Asbestos-related (benefit) costs, net | $ | (42.5 | ) | $ | (15.4 | ) | $ | (10.8 | ) | $ | 16.5 | |||||
Roll Forward of Asbestos Liability and Related Assets | ' | |||||||||||||||
Changes in Financial Position | ||||||||||||||||
The Company's estimated asbestos exposure, net of expected recoveries, for the resolution of all pending claims and claims estimated to be filed in the next 10 years was $727.2 and $746.9 as of September 30, 2014 and December 31, 2013, respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the nine months ended September 30, 2014. | ||||||||||||||||
Liability | Asset | Net | ||||||||||||||
Balance as of December 31, 2013 | $ | 1,264.70 | $ | 517.8 | $ | 746.9 | ||||||||||
Asbestos provision | 55.5 | 7.5 | 48 | |||||||||||||
Asbestos remeasurement, net | (42.8 | ) | 16 | (58.8 | ) | |||||||||||
Net cash and other activity | (52.9 | ) | (44.0 | ) | (8.9 | ) | ||||||||||
Balance as of September 30, 2014 | $ | 1,224.50 | $ | 497.3 | $ | 727.2 | ||||||||||
Current portion | $ | 106.4 | $ | 100.1 | ||||||||||||
Noncurrent portion | $ | 1,118.10 | $ | 397.2 | ||||||||||||
Rollforward of Environmental Liability and Related Assets | ' | |||||||||||||||
The following table provides a rollforward of the estimated environmental liability and related assets for the nine months ended September 30, 2014. | ||||||||||||||||
Liability | Asset | Net | ||||||||||||||
Balance as of December 31, 2013 | $ | 94.6 | $ | 11.7 | $ | 82.9 | ||||||||||
Change in estimates for pre-existing accruals: | ||||||||||||||||
Continuing operations | 1.3 | (3.3 | ) | 4.6 | ||||||||||||
Discontinued operations | 2.4 | (0.6 | ) | 3 | ||||||||||||
Accruals added during the period for new matters | 0.1 | — | 0.1 | |||||||||||||
Net cash activity | (9.4 | ) | (0.2 | ) | (9.2 | ) | ||||||||||
Foreign currency | (0.2 | ) | — | (0.2 | ) | |||||||||||
Balance as of September 30, 2014 | $ | 88.8 | $ | 7.6 | $ | 81.2 | ||||||||||
Range Of Liability And Number Of Active Sites For Environmental Matters Table [Table Text Block] | ' | |||||||||||||||
The following table illustrates the reasonably possible range of estimated liability, and number of active sites for environmental matters, at September 30, 2014. | ||||||||||||||||
Low-end estimate | $ | 68.5 | ||||||||||||||
High end estimate | $ | 156.5 | ||||||||||||||
Number of active environmental investigation and remediation sites | 54 | |||||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Revenue | ' | |||||||||||||||||||||||
Revenue | Operating Income | Operating Margin | ||||||||||||||||||||||
Three Months Ended September 30 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Industrial Process | $292.70 | $285.00 | $31.00 | $27.70 | 10.60% | 9.70% | ||||||||||||||||||
Motion Technologies | 197 | 176.8 | 36.5 | 24.8 | 18.50% | 14.00% | ||||||||||||||||||
Interconnect Solutions | 98.4 | 103.9 | 11.2 | 10.8 | 11.40% | 10.40% | ||||||||||||||||||
Control Technologies | 70.7 | 69.9 | 15.7 | 13.7 | 22.20% | 19.60% | ||||||||||||||||||
Total segment results | 658.8 | 635.6 | 94.4 | 77 | 14.40% | 12.10% | ||||||||||||||||||
Asbestos-related benefit, net | — | — | 42.5 | 15.4 | — | — | ||||||||||||||||||
Eliminations / Other corporate costs | -1.7 | -1.6 | -17.2 | -15.4 | — | — | ||||||||||||||||||
Total Eliminations / Corporate and Other costs | -1.7 | -1.6 | 25.3 | — | — | — | ||||||||||||||||||
Total | $657.10 | $634.00 | $119.70 | $77.00 | 18.20% | 12.10% | ||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ' | |||||||||||||||||||||||
Total Assets | Capital | Depreciation & | ||||||||||||||||||||||
Expenditures | Amortization | |||||||||||||||||||||||
Nine Months Ended September 30 | 2014 | 2013(a) | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||
Industrial Process | $ | 1,168.70 | $ | 1,132.70 | $ | 26.5 | $ | 29.6 | $ | 21.3 | $ | 24.5 | ||||||||||||
Motion Technologies | 484.2 | 466.2 | 32.5 | 13.4 | 21.9 | 22.4 | ||||||||||||||||||
Interconnect Solutions | 366.4 | 364.6 | 8.5 | 6.6 | 8.9 | 7.8 | ||||||||||||||||||
Control Technologies | 341.4 | 344.7 | 1.3 | 2.7 | 7.5 | 7.4 | ||||||||||||||||||
Corporate and Other | 1,346.00 | 1,432.00 | 5.6 | 5.9 | 4.6 | 4.4 | ||||||||||||||||||
Total | $ | 3,706.70 | $ | 3,740.20 | $ | 74.4 | $ | 58.2 | $ | 64.2 | $ | 66.5 | ||||||||||||
Recovered_Sheet1
RESTRUCTURING ACTIONS Restructuring Costs and Accrual Rollforward(Details) (USD $) | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | $3.10 | $1.70 | $22.20 | $10.60 | ' |
Restructuring Reserve - Beginning Balance | ' | ' | 14.7 | 7.8 | 7.8 |
Restructuring Costs | ' | ' | 22.2 | 10.6 | ' |
Payments for Restructuring | ' | ' | -13 | -13.2 | ' |
Asset Write-Offs | ' | ' | -1.3 | -0.5 | ' |
Restructuring Reserve, Translation Adjustment | ' | ' | -0.5 | 0 | ' |
Restructuring Reserve - Ending Balance | 22.1 | 4.7 | 22.1 | 4.7 | 22.1 |
Industrial Process [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 1.6 | 0.4 | 4.5 | 1.1 | ' |
Motion Technologies [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 0.1 | 0.6 | 0.3 | 3.1 | ' |
Interconnect Solutions [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 0.4 | 0.6 | 16.4 | 6 | 34.5 |
Restructuring Reserve - Beginning Balance | ' | ' | 8 | ' | ' |
Restructuring Costs | ' | ' | 16.4 | ' | ' |
Payments for Restructuring | ' | ' | -8 | ' | ' |
Asset Write-Offs | ' | ' | -1.3 | ' | ' |
Restructuring Reserve - Ending Balance | 15.1 | ' | 15.1 | ' | 15.1 |
Control Technologies [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 0 | 0 | 0 | 0 | ' |
Corporate and Other [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 1 | 0.1 | 1 | 0.4 | ' |
Employee Severance [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 2.2 | 1.2 | 18.8 | 9.9 | ' |
Restructuring Reserve - Ending Balance | 20 | 4.7 | 20 | 4.7 | 20 |
Asset Write-Offs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 0 | 0.5 | 1.3 | 0.5 | ' |
Other Restructuring [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Total restructuring costs | 0.9 | 0 | 2.1 | 0.2 | ' |
Restructuring Reserve - Ending Balance | $2.10 | $0 | $2.10 | $0 | $2.10 |
Recovered_Sheet2
RESTRUCTURING ACTIONS Restructuring Plan - Interconnect Solutions Turnaround (Details) (USD $) | 3 Months Ended | 9 Months Ended | 21 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
Employees | Employees | ||||
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Restructuring Reserve - Beginning Balance | ' | ' | $14.70 | $7.80 | $7.80 |
Restructuring Costs | ' | ' | 22.2 | 10.6 | ' |
Payments for Restructuring | ' | ' | -13 | -13.2 | ' |
Asset Write-Offs | ' | ' | -1.3 | -0.5 | ' |
Restructuring Reserve - Ending Balance | 22.1 | 4.7 | 22.1 | 4.7 | 22.1 |
Total restructuring costs | 3.1 | 1.7 | 22.2 | 10.6 | ' |
Interconnect Solutions [Member] | ' | ' | ' | ' | ' |
Restructuring Cost [Line Items] | ' | ' | ' | ' | ' |
Restructuring Reserve - Beginning Balance | ' | ' | 8 | ' | ' |
Restructuring Costs | ' | ' | 16.4 | ' | ' |
Payments for Restructuring | ' | ' | -8 | ' | ' |
Asset Write-Offs | ' | ' | -1.3 | ' | ' |
Restructuring Reserve - Ending Balance | 15.1 | ' | 15.1 | ' | 15.1 |
Total restructuring costs | 0.4 | 0.6 | 16.4 | 6 | 34.5 |
Restructuring and Related Cost, Expected Cost Remaining | $1 | ' | $1 | ' | $1 |
Restructuring and Related Cost, Number of Positions Eliminated | ' | ' | 250 | 75 | ' |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax expense (benefit) | ($38) | $354.40 | ($63.40) | $325 |
Effective income tax rate | 31.90% | -446.90% | 28.80% | -212.40% |
Release of U.S. deferred tax asset valuation allowance | ' | ' | ' | 374.6 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $84.10 | ' | $84.10 | ' |
EARNINGS_PER_SHARE_Basic_and_D
EARNINGS PER SHARE - Basic and Diluted Loss Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Weighted average common shares - basic | 91.6 | 90.4 | 91.5 | 91 |
Add: Dilutive impact of stock options and restricted stock units | 1.3 | 1.5 | 1.4 | 1.3 |
Weighted average common shares - diluted | 92.9 | 91.9 | 92.9 | 92.3 |
EARNINGS_PER_SHARE_Number_of_S
EARNINGS PER SHARE - Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Number of ROIC Awards Excluded from Diluted Shares Outstanding | ' | ' | 0.2 | ' |
Anti-dilutive stock options | 0.2 | 0.3 | 0.2 | 0 |
Average exercise price | $43.51 | ' | $43.51 | $26.80 |
Average Exercise Price Zero Anti Dilutive Stock Options | ' | ' N/A | ' | ' |
Years of expiration | '2024 | 'N/A | '2024 | '2023 |
RECEIVABLES_NET_Detail
RECEIVABLES, NET - (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Trade accounts receivable | $538.10 | $463.90 |
Notes receivable | 4.2 | 6.3 |
Other | 37 | 39.1 |
Receivables, gross | 579.3 | 509.3 |
Allowance for doubtful accounts | -10.1 | -12.6 |
Receivables, net | $569.20 | $496.70 |
INVENTORIES_NET_Components_of_
INVENTORIES, NET - Components of Inventories, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $54.90 | $49.90 |
Work in process | 74.1 | 94.8 |
Raw materials | 162 | 166.7 |
Inventoried costs related to long-term contracts | 68.3 | 85.4 |
Total inventory before progress payments | 359.3 | 396.8 |
Less - progress payments | -46.5 | -80.9 |
Inventories, net | $312.80 | $315.90 |
OTHER_CURRENT_AND_NONCURRENT_A2
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Asbestos-related current assets | $100.10 | $84.50 |
Short-term Investments | 67.6 | 112.9 |
Prepaid income taxes | 21.7 | 23.6 |
Current deferred income taxes | 61.9 | 59.5 |
Other | 53.7 | 65.1 |
Other current assets | 305 | 345.6 |
Other employee benefit-related assets | 96.3 | 95.5 |
Capitalized software costs | 18.2 | 14.6 |
Environmental Related Assets | 7.6 | 11.7 |
Equity Method Investments | 4.7 | 4.7 |
Other | 19.2 | 18.4 |
Other non-current assets | $146 | $144.90 |
PLANT_PROPERTY_AND_EQUIPMENT_N2
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ' | ' |
Land and improvements | $24.90 | $26.80 |
Machinery and equipment | 853.6 | 834.5 |
Buildings and improvements | 226 | 211.6 |
Furniture, fixtures and office equipment | 74.2 | 74.6 |
Construction work in progress | 46.8 | 59.8 |
Other | 8.3 | 8.5 |
Plant, property and equipment, gross | 1,233.80 | 1,215.80 |
Less - accumulated depreciation | -800.6 | -789.6 |
Plant, property and equipment, net | $433.20 | $426.20 |
PLANT_PROPERTY_AND_EQUIPMENT_N3
PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' | ' | ' |
Depreciation expense | $18.50 | $16.40 | $52.20 | $46.90 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Goodwill [Roll Forward] | ' |
Goodwill - December 31, 2013 | $659.80 |
Goodwill acquired | 1.2 |
Foreign currency | -18 |
Goodwill - September 30, 2014 | 643 |
Control Technologies [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill - December 31, 2013 | 185.1 |
Goodwill acquired | 0 |
Foreign currency | 0 |
Goodwill - September 30, 2014 | 185.1 |
Interconnect Solutions [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill - December 31, 2013 | 73.9 |
Goodwill acquired | 0 |
Foreign currency | -1.6 |
Goodwill - September 30, 2014 | 72.3 |
Motion Technologies [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill - December 31, 2013 | 49.8 |
Goodwill acquired | 0 |
Foreign currency | -3.8 |
Goodwill - September 30, 2014 | 46 |
Industrial Process [Member] | ' |
Goodwill [Roll Forward] | ' |
Goodwill - December 31, 2013 | 351 |
Goodwill acquired | 1.2 |
Foreign currency | -12.6 |
Goodwill - September 30, 2014 | $339.60 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | ' |
Amortization expense related to finite-lived intangible assets | $2.50 | $3.60 | $8.80 | $15.10 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Gross | $128.50 | $131.60 |
Indefinite-lived intangible assets, Gross/Net Carrying Amount | 26.9 | 27.8 |
Other Intangible Assets, Gross Carrying Amount | 155.4 | 159.4 |
Accumulated Amortization | -59.9 | -52.5 |
Finite-live intangible asset, net of accumulated amortization | 68.6 | 79.1 |
Other intangible assets, net | 95.5 | 106.9 |
Customer relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Customer Relationships, Gross Carrying Amount | 84.1 | 84.9 |
Accumulated Amortization | -36.9 | -31.9 |
Finite-live intangible asset, net of accumulated amortization | 47.2 | 53 |
Proprietary technology [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Proprietary Technology, Gross Carrying Amount | 28.9 | 30.3 |
Accumulated Amortization | -9.4 | -7.6 |
Finite-live intangible asset, net of accumulated amortization | 19.5 | 22.7 |
Patents and other [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Patents and Other, Gross Carrying Amount | 15.5 | 16.4 |
Accumulated Amortization | -13.6 | -13 |
Finite-live intangible asset, net of accumulated amortization | $1.90 | $3.40 |
ACCRUED_AND_OTHER_CURRENT_LIAB2
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Compensation and other employee-related benefits | $171.30 | $178.50 |
Asbestos-related liability | 106.4 | 85.1 |
Customer-related liabilities | 57 | 55.6 |
Accrued income taxes and other tax-related liabilities | 37.4 | 29.8 |
Environmental Liabilities and other legal matters | 33.9 | 38.5 |
Accrued warranty costs | 28.4 | 28.6 |
Short-term loans and current maturities of long-term debt | 1.6 | 39.8 |
Other accrued liabilities | 48.6 | 44 |
Accrued and other current liabilities | 484.6 | 499.9 |
Deferred income taxes and other tax-related accruals | 109.6 | 116.2 |
Environmental liabilities | 79.2 | 85.1 |
Compensation and other employee-related benefits | 40.4 | 43.8 |
Other | 36.9 | 32.7 |
Other non-current liabilities | $266.10 | $277.80 |
DEBT_Outstanding_Debt_Detail
DEBT - Outstanding Debt (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
Commercial Paper | $0 | $38 |
Current maturities of long-term debt | 1.2 | 1.3 |
Current capital leases | 0.4 | 0.5 |
Short-term loans and current maturities of long-term debt | 1.6 | 39.8 |
Non-current maturities of long-term debt | 6.5 | 7.6 |
Non-current capital leases | 1.2 | 1.5 |
Long-term debt and capital leases | 7.7 | 9.1 |
Total debt and capital leases | $9.30 | $48.90 |
POSTRETIREMENT_BENEFIT_PLANS_N
POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | $1.70 | $2.40 | $5.10 | $7.30 |
Interest cost | 5.9 | 5.8 | 17.6 | 17.2 |
Expected return on plan assets | -5.3 | -5.1 | -16 | -15.2 |
Amortization of prior service cost (benefit) | -1.4 | 0.1 | -4 | 0.3 |
Amortization of net actuarial loss | 2.4 | 3.3 | 7 | 10 |
Net periodic benefit cost | 3.3 | 6.5 | 9.7 | 19.6 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0.7 | 0 | 0.7 |
Defined Benefit Plan, Net Periodic Benefit Cost | 3.3 | 7.2 | 9.7 | 20.3 |
Pension Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 1.2 | 1.7 | 3.7 | 5.1 |
Interest cost | 3.9 | 3.7 | 11.7 | 11 |
Expected return on plan assets | -5.1 | -4.9 | -15.5 | -14.7 |
Amortization of prior service cost (benefit) | 0.1 | 0.2 | 0.5 | 0.6 |
Amortization of net actuarial loss | 1.6 | 2.2 | 4.7 | 6.7 |
Net periodic benefit cost | 1.7 | 2.9 | 5.1 | 8.7 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0.7 | 0 | 0.7 |
Defined Benefit Plan, Net Periodic Benefit Cost | 1.7 | 3.6 | 5.1 | 9.4 |
Other Postretirement Benefit Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost | 0.5 | 0.7 | 1.4 | 2.2 |
Interest cost | 2 | 2.1 | 5.9 | 6.2 |
Expected return on plan assets | -0.2 | -0.2 | -0.5 | -0.5 |
Amortization of prior service cost (benefit) | -1.5 | -0.1 | -4.5 | -0.3 |
Amortization of net actuarial loss | 0.8 | 1.1 | 2.3 | 3.3 |
Net periodic benefit cost | 1.6 | 3.6 | 4.6 | 10.9 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | $1.60 | $3.60 | $4.60 | $10.90 |
POSTRETIREMENT_BENEFIT_PLANS_P
POSTRETIREMENT BENEFIT PLANS Postretirement Defined Benefit Plan Textual Disclosures (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' | ' |
Defined Benefit Plan, Effect of Plan Amendment on Accumulated Benefit Obligation | $28.80 | $4.40 | $28.80 | $4.40 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments | 0 | 0.7 | 0 | 0.7 |
Defined Benefit Plan, Contributions by Employer | 2.9 | 3 | 7.7 | 8.8 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | $0.80 | ($0.40) | $2.10 | $6.50 |
LONGTERM_INCENTIVE_EMPLOYEE_CO2
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Share-based compensation expense, equity-based awards | $4 | $9.70 | $10.80 | $3.50 |
Share-based compensation expense, liability-based awards | 1 | 2.2 | 2.9 | 1.4 |
Total share-based compensation expense in operating income (loss) | $5 | $11.90 | $13.70 | $4.90 |
LONGTERM_INCENTIVE_EMPLOYEE_CO3
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) (USD $) | 9 Months Ended | |||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 04, 2013 |
Equity Based Awards [Member] | Liability Based Awards [Member] | TSR [Member] | TSR [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost not yet recognized | ' | ' | $22.50 | $3.40 | ' | ' |
Unrecognized compensation cost weighted-average period | ' | ' | '2 years 1 month 5 days | '1 year 7 months 1 day | ' | ' |
Stock option exercised | 0.8 | 1.7 | ' | ' | ' | ' |
Proceeds from stock option exercised | $14.30 | $28 | ' | ' | ' | ' |
Restricted stock lapsed | 0.3 | ' | ' | ' | ' | ' |
Fair value dividend yield | ' | ' | ' | ' | 1.00% | ' |
Annualized Dividend Assumption per share | ' | ' | ' | ' | $0.44 | ' |
Company Closing Stock Price | ' | ' | ' | ' | ' | $43.52 |
LONGTERM_INCENTIVE_EMPLOYEE_CO4
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) (USD $) | 9 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Mar. 04, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Grant Date Fair Value | ' | $11.93 |
NQOs [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Awards Granted | 0.2 | ' |
Grant Date Fair Value | ' | $11.93 |
Restricted Stock Unit [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Awards Granted | 0.3 | ' |
Grant Date Fair Value | ' | $43.52 |
TSR [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Awards Granted | 0.1 | ' |
Grant Date Fair Value | ' | $48.78 |
ROIC [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Number of Awards Granted | 0.1 | ' |
Grant Date Fair Value | ' | $42.20 |
LONGTERM_INCENTIVE_EMPLOYEE_CO5
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Weighted Average Assumptions (Detail) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Mar. 04, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Expected volatility | 29.60% | ' |
Expected life (in years) | '5 years 9 months 6 days | ' |
Risk-free rates | 1.80% | ' |
Grant Date Fair Value | ' | $11.93 |
CAPITAL_STOCK_Additional_Infor
CAPITAL STOCK - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 95 Months Ended | |
Share data in Millions, unless otherwise specified | Oct. 27, 2006 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 |
2006 Share Repurchase Program [Member] | |||||
Equity, Class of Treasury Stock [Line Items] | ' | ' | ' | ' | ' |
Term of repurchase program | '3 years | ' | ' | ' | ' |
Share repurchase program | ' | $1,000,000,000 | $1,000,000,000 | ' | ' |
Repurchase of shares of common stock | ' | 0.2 | 0.4 | 3.1 | 15.7 |
Aggregate cost of repurchase | ' | -10,000,000 | -20,000,000 | -85,200,000 | -649,300,000 |
Number of shares repurchased under settlement of employee tax withholding obligations | ' | ' | 0.1 | 0.1 | ' |
Shares repurchased aggregate value under settlement of employee tax withholding obligations | ' | ' | $5,500,000 | $2,800,000 | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES Rollforward of Asbestos Claims (Detail) (Asbestos Issue [Member]) | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | |||
Claim | Claim | |||
Asbestos Claims [Rollforward] | ' | ' | ||
Pending claims - Beginning | 79,000 | 96,000 | ||
New claims | 3,000 | 4,000 | ||
Settlements | -2,000 | -3,000 | ||
Loss Contingency, Claims Dismissed, Number | 12,000 | [1] | 20,000 | [1] |
Pending claims - Ending | 68,000 | 77,000 | ||
Inactive [Member] | ' | ' | ||
Asbestos Claims [Rollforward] | ' | ' | ||
Pending claims - Ending | 18,000 | [1] | 18,000 | [1] |
Active [Member] | ' | ' | ||
Asbestos Claims [Rollforward] | ' | ' | ||
Pending claims - Ending | 50,000 | 59,000 | ||
[1] | (a)The 2013 dismissals reported in the table above include the dismissal of approximately 12 thousand claims, that were considered pending inactive claims. There were no inactive claims dismissed during 2014. Inactive claims represent pending claims in Mississippi filed in 2004 or prior, 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. |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Asbestos Related Expenses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Asbestos Related Contingencies [Line Items] | ' | ' | ' | ' |
Asbestos Provision For Liability And Related Assets Net | ($16.30) | ($15.10) | ($48) | ($47) |
Asbestos Related Remeasurement Costs Before Tax | 58.8 | -0.5 | 58.8 | -0.5 |
Gain From Asbestos Insurance Settlement Agreement | 0 | -31 | 0 | -31 |
Asbestos-related (benefit) costs, net | ($42.50) | ($15.40) | ($10.80) | $16.50 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES Roll Forward of Asbestos Liability and Related Assets (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Net Asbestos Liability Rollforward [Line Items] | ' | ' | ' | ' | ' |
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | ' | ' | ($746.90) | ' | ' |
Asbestos Provision For Liability And Related Assets Net | 16.3 | 15.1 | 48 | 47 | ' |
Asbestos Related Remeasurement Costs Before Tax | -58.8 | 0.5 | -58.8 | 0.5 | ' |
Increase Decrease Net Cash Activity | ' | ' | 8.9 | ' | ' |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | -727.2 | ' | -727.2 | ' | ' |
Asbestos-related liabilities | -1,118.10 | ' | -1,118.10 | ' | -1,179.60 |
Liability [Member] | ' | ' | ' | ' | ' |
Net Asbestos Liability Rollforward [Line Items] | ' | ' | ' | ' | ' |
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | ' | ' | -1,264.70 | ' | ' |
Asbestos Provision For Liability And Related Assets Net | ' | ' | -55.5 | ' | ' |
Asbestos Related Remeasurement Costs Before Tax | ' | ' | 42.8 | ' | ' |
Increase Decrease Net Cash Activity | ' | ' | 52.9 | ' | ' |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | -1,224.50 | ' | -1,224.50 | ' | ' |
Loss Contingency, Accrual, Current | 106.4 | ' | 106.4 | ' | ' |
Asbestos-related liabilities | -1,118.10 | ' | -1,118.10 | ' | ' |
Asset [Member] | ' | ' | ' | ' | ' |
Net Asbestos Liability Rollforward [Line Items] | ' | ' | ' | ' | ' |
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | ' | ' | 517.8 | ' | ' |
Asbestos Provision For Liability And Related Assets Net | ' | ' | -7.5 | ' | ' |
Asbestos Related Remeasurement Costs Before Tax | ' | ' | -16 | ' | ' |
Increase Decrease Net Cash Activity | ' | ' | -44 | ' | ' |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | 497.3 | ' | 497.3 | ' | ' |
Loss Contingency, Accrual, Current | -100.1 | ' | -100.1 | ' | ' |
Asbestos-related liabilities | $397.20 | ' | $397.20 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES Asbestos Matters Textuals (Details) (USD $) | 3 Months Ended | 9 Months Ended | 36 Months Ended | 9 Months Ended | 9 Months Ended | ||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | ||
Asbestos Issue [Member] | Asbestos Issue [Member] | Asbestos Issue [Member] | Asbestos Issue [Member] | Asbestos Issue [Member] | Asbestos Issue [Member] | Asbestos Issue [Member] | Asbestos Issue [Member] | Liability [Member] | Liability [Member] | Asset [Member] | Asset [Member] | Minimum [Member] | Maximum [Member] | ||||||||
Claim | Claim | Claim | Claim | Active [Member] | Active [Member] | Inactive [Member] | Inactive [Member] | ||||||||||||||
Claim | Claim | Claim | Claim | ||||||||||||||||||
Asbestos Related Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Asbestos Liability Measurement Periods for Claims Pending and Estimated to be Filed | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Pending Asbestos Claims | ' | ' | ' | ' | ' | 68,000 | 79,000 | 77,000 | 96,000 | 50,000 | 59,000 | 18,000 | [1] | 18,000 | [1] | ' | ' | ' | ' | ' | ' |
Inactive dismissed claims | ' | ' | ' | ' | ' | ' | ' | 12,000 | ' | ' | ' | 6,000 | ' | ' | ' | ' | ' | ' | ' | ||
Asbestos coverage in place insurance agreements, percent of total asset | ' | ' | ' | ' | ' | 55.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Asbestos Related Remeasurement Costs Before Tax | ($58.80) | $0.50 | ($58.80) | $0.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $42.80 | ' | ($16) | ' | ' | ' | ||
Gain From Asbestos Insurance Settlement Agreement | 0 | -31 | 0 | -31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Asbestos Liability And Related Assets Net Current And Noncurrent | 727.2 | ' | 727.2 | ' | 746.9 | ' | ' | ' | ' | ' | ' | ' | ' | 1,224.50 | 1,264.70 | -497.3 | -517.8 | ' | ' | ||
Estimate of Asbestos Costs to be Recovered from Insurers, percentage of total costs | 41.00% | ' | 41.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Estimate of Asbestos Costs to be Recovered for Insurers in 10 years, percent | 25.00% | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Projected Annual Net Asbestos Cash Outflows, next 5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15 | 25 | ||
Average Net Asbestos Cash Outflow, past 3 annual periods | ' | ' | ' | ' | 14 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Projected Annual Net Asbestos Cash Outflows, Years 6 through 10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $40 | $50 | ||
[1] | (a)The 2013 dismissals reported in the table above include the dismissal of approximately 12 thousand claims, that were considered pending inactive claims. There were no inactive claims dismissed during 2014. Inactive claims represent pending claims in Mississippi filed in 2004 or prior, 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. |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES Rollforward of Environmental Liability and Related Assets (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Loss Contingency Accrual [Roll Forward] | ' |
Environmental liability - Beginning balance | ($82.90) |
Accruals added during the period for new matters, Liability | 0.1 |
Net Cash Activity | -9.2 |
Foreign exchange translation | -0.2 |
Environmental liability - Ending balance | -81.2 |
Liability [Member] | ' |
Loss Contingency Accrual [Roll Forward] | ' |
Environmental liability - Beginning balance | -94.6 |
Accruals added during the period for new matters, Liability | 0.1 |
Net Cash Activity | -9.4 |
Foreign exchange translation | -0.2 |
Environmental liability - Ending balance | -88.8 |
Assets [Member] | ' |
Loss Contingency Accrual [Roll Forward] | ' |
Environmental liability - Beginning balance | 11.7 |
Accruals added during the period for new matters, Liability | ' |
Net Cash Activity | 0.2 |
Foreign exchange translation | 0 |
Environmental liability - Ending balance | 7.6 |
Continuing Operations [Member] | ' |
Environmental Liability And Related Assets [Line items] | ' |
Changes In Pre-Existing Environmental Accruals | 4.6 |
Continuing Operations [Member] | Liability [Member] | ' |
Environmental Liability And Related Assets [Line items] | ' |
Changes In Pre-Existing Environmental Accruals | 1.3 |
Continuing Operations [Member] | Assets [Member] | ' |
Environmental Liability And Related Assets [Line items] | ' |
Changes In Pre-Existing Environmental Accruals | 3.3 |
Discontinued Operations [Member] | ' |
Environmental Liability And Related Assets [Line items] | ' |
Changes In Pre-Existing Environmental Accruals | 3 |
Discontinued Operations [Member] | Liability [Member] | ' |
Environmental Liability And Related Assets [Line items] | ' |
Changes In Pre-Existing Environmental Accruals | 2.4 |
Discontinued Operations [Member] | Assets [Member] | ' |
Environmental Liability And Related Assets [Line items] | ' |
Changes In Pre-Existing Environmental Accruals | $0.60 |
COMMITMENTS_AND_CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES Range of Environmental Liability and Number of Active Sites (Details) (Environmental Related Matters [Member], USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | site |
Environmental Related Matters [Member] | ' |
Site Contingency [Line Items] | ' |
Loss Contingency, Range of Possible Loss, Minimum | $68.50 |
Loss Contingency, Range of Possible Loss, Maximum | $156.50 |
Number Of Active Environmental Investigation And Remediation Sites | 54 |
SEGMENT_INFORMATION_Additional
SEGMENT INFORMATION - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2014 | |
Segment | |
Segment Reporting [Abstract] | ' |
Number of reportable segments | 4 |
SEGMENT_INFORMATION_Schedule_o
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Revenue (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | $657.10 | $634 | $1,994.60 | $1,851.40 |
Operating Income | 119.7 | 77 | 222.5 | 155.6 |
Operating Margin | 18.20% | 12.10% | 11.20% | 8.40% |
Total Segment Results [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 658.8 | 635.6 | 1,999.80 | 1,855.60 |
Operating Income | 94.4 | 77 | 260 | 219.1 |
Operating Margin | 14.40% | 12.10% | 13.00% | 11.80% |
Industrial Process [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 292.7 | 285 | 867.6 | 810.5 |
Operating Income | 31 | 27.7 | 80.7 | 78.3 |
Operating Margin | 10.60% | 9.70% | 9.30% | 9.70% |
Motion Technologies [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 197 | 176.8 | 612.8 | 541.4 |
Operating Income | 36.5 | 24.8 | 111.4 | 81.1 |
Operating Margin | 18.50% | 14.00% | 18.20% | 15.00% |
Interconnect Solutions [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 98.4 | 103.9 | 302.1 | 295 |
Operating Income | 11.2 | 10.8 | 20.5 | 16.2 |
Operating Margin | 11.40% | 10.40% | 6.80% | 5.50% |
Control Technologies [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 70.7 | 69.9 | 217.3 | 208.7 |
Operating Income | 15.7 | 13.7 | 47.4 | 43.5 |
Operating Margin | 22.20% | 19.60% | 21.80% | 20.80% |
Total eliminations / corporate and other costs [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | -1.7 | -1.6 | -5.2 | -4.2 |
Operating Income | 25.3 | 0 | -37.5 | -63.5 |
Operating Margin | 0.00% | 0.00% | ' | ' |
Asbestos Related Costs Net [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | 0 | 0 | 0 | 0 |
Operating Income | 42.5 | 15.4 | 10.8 | -16.5 |
Operating Margin | 0.00% | 0.00% | ' | ' |
Eliminations / Other corporate costs [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenue | -1.7 | -1.6 | -5.2 | -4.2 |
Operating Income | ($17.20) | ($15.40) | ($48.30) | ($47) |
Operating Margin | 0.00% | 0.00% | ' | ' |
SEGMENT_INFORMATION_Schedule_o1
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total Assets | $3,706.70 | ' | $3,740.20 | [1] |
Capital Expenditures | 74.4 | 58.2 | ' | |
Depreciation & Amortization | 64.2 | 66.5 | ' | |
Industrial Process [Member] | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total Assets | 1,168.70 | ' | 1,132.70 | [1] |
Capital Expenditures | 26.5 | 29.6 | ' | |
Depreciation & Amortization | 21.3 | 24.5 | ' | |
Motion Technologies [Member] | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total Assets | 484.2 | ' | 466.2 | [1] |
Capital Expenditures | 32.5 | 13.4 | ' | |
Depreciation & Amortization | 21.9 | 22.4 | ' | |
Interconnect Solutions [Member] | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total Assets | 366.4 | ' | 364.6 | [1] |
Capital Expenditures | 8.5 | 6.6 | ' | |
Depreciation & Amortization | 8.9 | 7.8 | ' | |
Control Technologies [Member] | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total Assets | 341.4 | ' | 344.7 | [1] |
Capital Expenditures | 1.3 | 2.7 | ' | |
Depreciation & Amortization | 7.5 | 7.4 | ' | |
Corporate and Other [Member] | ' | ' | ' | |
Segment Reporting Information [Line Items] | ' | ' | ' | |
Total Assets | 1,346 | ' | 1,432 | [1] |
Capital Expenditures | 5.6 | 5.9 | ' | |
Depreciation & Amortization | $4.60 | $4.40 | ' | |
[1] | Amounts reflect balances as of December 31, 2013. |