Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Apr. 28, 2015 |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ITT | |
Entity Registrant Name | ITT Corporation | |
Entity Central Index Key | 216228 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 89.2 |
CONSOLIDATED_CONDENSED_INCOME_
CONSOLIDATED CONDENSED INCOME STATEMENTS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $588.70 | $674.50 |
Costs of revenue | 389.7 | 459.7 |
Gross profit | 199 | 214.8 |
General and administrative expenses | 60.1 | 77.7 |
Sales and marketing expenses | 47.3 | 55.3 |
Research and development expenses | 18.3 | 17.7 |
Asbestos-related costs, net | 15.4 | 15.8 |
Operating income | 57.9 | 48.3 |
Interest and non-operating expenses, net | 1.2 | 1.1 |
Income from continuing operations before income tax expense | 56.7 | 47.2 |
Income tax expense | 18.1 | 13 |
Income from continuing operations | 38.6 | 34.2 |
Income (loss) from discontinued operations, net of tax | 3.4 | -1 |
Net income | 42 | 33.2 |
Less: (Loss) income attributable to noncontrolling interests | -0.1 | 1 |
Net income attributable to ITT Corporation | 42.1 | 32.2 |
Amounts attributable to ITT Corporation: | ||
Income from continuing operations, net of tax | 38.7 | 33.2 |
Income (loss) from discontinued operations, net of tax | 3.4 | -1 |
Net income attributable to ITT Corporation | $42.10 | $32.20 |
Basic: | ||
Continuing operations | $0.42 | $0.36 |
Discontinued operations | $0.04 | ($0.01) |
Net income | $0.46 | $0.35 |
Diluted: | ||
Continuing operations | $0.42 | $0.36 |
Discontinued operations | $0.04 | ($0.01) |
Net income | $0.46 | $0.35 |
Weighted average common shares – basic | 90.6 | 91.4 |
Weighted average common shares – diluted | 91.6 | 92.8 |
Cash dividends declared per common share | $0.12 | $0.11 |
CONSOLIDATED_CONDENSED_INCOME_1
CONSOLIDATED CONDENSED INCOME STATEMENTS (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Tax benefit on income from discontinued operations | $3.50 | $0.50 |
CONSOLIDATED_CONDENSED_STATEME
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $42 | $33.20 |
Other comprehensive income: | ||
Net foreign currency translation adjustment | -60.9 | -2.5 |
Net change in postretirement benefit plans, net of tax impacts of $0.3 and $0.4, respectively | 0.5 | 0.6 |
Other comprehensive (loss) income | -60.4 | -1.9 |
Comprehensive (loss) income | -18.4 | 31.3 |
Less: Comprehensive (loss) income attributable to noncontrolling interests | -0.1 | 1 |
Comprehensive (loss) income attributable to ITT Corporation | -18.3 | 30.3 |
Reclassification adjustments (see Note 14): | ||
Amortization of prior service benefit, net of tax expense of $(0.9) and $(0.5), respectively | -1.6 | -0.8 |
Amortization of net actuarial loss, net of tax benefits of $1.2 and $0.9, respectively | 2.1 | 1.4 |
Net change in postretirement benefit plans, net of tax impacts of $0.3 and $0.4, respectively | $0.50 | $0.60 |
CONSOLIDATED_CONDENSED_STATEME1
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (Parentheticals) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $0.30 | $0.40 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax | -0.9 | -0.5 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax | $1.20 | $0.90 |
CONSOLIDATED_CONDENSED_BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | |
In Millions, unless otherwise specified | |||
Current assets: | |||
Cash and cash equivalents | $570.10 | $584 | |
Receivables, net | 537.2 | 500.1 | |
Inventories, net | 287.6 | 302.3 | |
Total current assets | 243.8 | 249.8 | |
Total current assets | 1,638.70 | 1,636.20 | |
Plant, property and equipment, net | 419.3 | 443.9 | |
Goodwill | 610.7 | 632.1 | |
Other intangible assets, net | 85.4 | 91.4 | |
Asbestos-related assets | 365.8 | 374 | |
Deferred income taxes | 301.4 | 304.1 | |
Other non-current assets | 151.3 | 149.8 | |
Total non-current assets | 1,933.90 | 1,995.30 | |
Total assets | 3,572.60 | 3,631.50 | [1] |
Current liabilities: | |||
Commercial paper | 113.5 | 0 | |
Accounts payable | 287.7 | 309.6 | |
Accrued liabilities | 433.3 | 465.8 | |
Total current liabilities | 834.5 | 775.4 | |
Asbestos-related liabilities | 1,120.70 | 1,116.60 | |
Postretirement benefits | 242 | 249.7 | |
Other non-current liabilities | 260.8 | 269.5 | |
Total non-current liabilities | 1,623.50 | 1,635.80 | |
Total liabilities | 2,458 | 2,411.20 | |
Shareholders’ equity: | |||
Outstanding – 89.2 shares and 91.0 shares, respectively | 89.2 | 91 | |
Retained earnings | 1,401.70 | 1,445.10 | |
Total accumulated other comprehensive loss | -381.6 | -321.2 | |
Total ITT Corporation shareholders' equity | 1,109.30 | 1,214.90 | |
Noncontrolling interests | 5.3 | 5.4 | |
Total shareholders’ equity | 1,114.60 | 1,220.30 | |
Total liabilities and shareholders’ equity | $3,572.60 | $3,631.50 | |
[1] | Amounts reflect balances as of December 31, 2014. |
CONSOLIDATED_CONDENSED_BALANCE1
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
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 | 104.5 | 104.3 |
Common stock, shares outstanding | 89.2 | 91 |
CONSOLIDATED_CONDENSED_STATEME2
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net income | $42 | $33.20 |
Less: Income (loss) from discontinued operations | 3.4 | -1 |
Less: (Loss) income attributable to noncontrolling interests | -0.1 | 1 |
Income from continuing operations attributable to ITT Corporation | 38.7 | 33.2 |
Adjustments to income from continuing operations: | ||
Depreciation and amortization | 20.7 | 21.1 |
Stock-based compensation | 3.1 | 3.3 |
Asbestos-related costs, net | 15.4 | 15.8 |
Asbestos-related payments, net | -3.9 | -2.5 |
Changes in assets and liabilities: | ||
Change in receivables | -56.7 | -100 |
Change in inventories | 3.6 | 25.6 |
Change in accounts payable | -0.5 | 1.8 |
Change in accrued expenses | -21.3 | -9.5 |
Change in accrued and deferred income taxes | 17.2 | -1.7 |
Other, net | -8.1 | -0.3 |
Net Cash – Operating activities | 8.2 | -13.2 |
Investing Activities | ||
Capital expenditures | -30.2 | -19 |
Purchases of investments | -15.3 | -49 |
Maturities of investments | 5.3 | 97.2 |
Other, net | 0.2 | -2.7 |
Net Cash – Investing activities | -40 | 26.5 |
Financing Activities | ||
Short-term debt, net | 113.5 | -11 |
Long-term debt, repaid | -0.2 | -0.3 |
Repurchase of common stock | -82.8 | -4.8 |
Proceeds from issuance of common stock | 2 | 9 |
Excess tax benefit from equity compensation activity | 1.8 | 5.2 |
Other, net | -0.3 | -1.5 |
Net Cash – Financing activities | 34 | -3.4 |
Exchange rate effects on cash and cash equivalents | -15.8 | -1.7 |
Net Cash – Operating activities of discontinued operations | -0.3 | -0.4 |
Net change in cash and cash equivalents | -13.9 | 7.8 |
Cash and cash equivalents – beginning of year | 584 | 507.3 |
Cash and cash equivalents – end of period | 570.1 | 515.1 |
Cash paid during the year for: | ||
Interest | 0 | 0.1 |
Income taxes, net of refunds received | ($1) | $8.70 |
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, 2013 | ($80.80) | ||||
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 | 0.8 | ||||
Net income attributable to ITT Corporation | 32.2 | 32.2 | |||
Dividends declared | -10.1 | ||||
Activity from stock incentive plans | 16.8 | ||||
Share repurchases | -0.1 | -4.7 | |||
Purchase of noncontrolling interest | 1.6 | 2.9 | |||
Net change in postretirement benefit plans | 0.6 | 0.6 | |||
Net cumulative translation adjustment | -2.5 | ||||
(Loss) income attributable to noncontrolling interests | 1 | 1 | |||
Net change in common stock | 0.7 | ||||
Net change in retained earnings | 35.8 | ||||
Net change in accumulated other comprehensive loss | -1.9 | ||||
Net change in noncontrolling interests | -1.9 | ||||
Unrealized loss on investment securities, ending balance at Mar. 31, 2014 | -0.3 | ||||
Total shareholders' equity, ending balance at Mar. 31, 2014 | 1,239.60 | 91.7 | 1,356.10 | -212.2 | 4 |
Postretirement benefit plans, ending balance at Mar. 31, 2014 | -128.6 | ||||
Cumulative translation adjustment, ending balance at Mar. 31, 2014 | -83.3 | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2014 | -176.7 | ||||
Unrealized loss on investment securities, beginning balance at Dec. 31, 2014 | -0.3 | ||||
Total shareholders' equity, beginning balance at Dec. 31, 2014 | 1,220.30 | 91 | 1,445.10 | 5.4 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2014 | -144.2 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.3 | ||||
Net income attributable to ITT Corporation | 42.1 | 42.1 | |||
Dividends declared | -10.5 | ||||
Activity from stock incentive plans | 6.5 | ||||
Share repurchases | -2.1 | -81.5 | |||
Purchase of noncontrolling interest | 0 | 0 | |||
Net change in postretirement benefit plans | 0.5 | 0.5 | |||
Net cumulative translation adjustment | -60.9 | ||||
(Loss) income attributable to noncontrolling interests | -0.1 | -0.1 | |||
Net change in common stock | -1.8 | ||||
Net change in retained earnings | -43.4 | ||||
Net change in accumulated other comprehensive loss | -60.4 | ||||
Net change in noncontrolling interests | -0.1 | ||||
Unrealized loss on investment securities, ending balance at Mar. 31, 2015 | -0.3 | ||||
Total shareholders' equity, ending balance at Mar. 31, 2015 | 1,114.60 | 89.2 | 1,401.70 | -381.6 | 5.3 |
Postretirement benefit plans, ending balance at Mar. 31, 2015 | -143.7 | ||||
Cumulative translation adjustment, ending balance at Mar. 31, 2015 | ($237.60) |
DESCRIPTION_OF_BUSINESS_AND_BA
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
Description of Business | |
ITT Corporation is a diversified manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. Unless the context otherwise indicates, references herein to “ITT,” “the Company,” and such words as “we,” “us,” and “our” include ITT Corporation and its subsidiaries. ITT operates through four segments: Industrial Process, consisting of industrial pumping and complementary equipment; Motion Technologies, consisting of friction and shock and vibration equipment; Interconnect Solutions, consisting of electronic connectors; and Control Technologies, consisting of fluid handling, motion control and vibration and shock isolation products. Financial information for our segments is presented in Note 3, “Segment Information.” | |
On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related businesses, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this Report as the “2011 spin-off.” | |
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, 2014 (2014 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 2014 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. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS |
The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. | |
Accounting Pronouncements Not Yet Adopted | |
In May 2014, the Financial Accounting Standards Board (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. In April 2015, the FASB voted to propose a one-year deferral of the effective date of the new revenue standard. Under the proposal, the new guidance will be effective for the Company beginning in its first quarter of 2018. 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. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 chemical, oil and gas, mining, and other industrial process markets and is a provider of plant optimization and efficiency solutions and aftermarket services and parts. | ||||||||||||||||||||||||
Motion Technologies manufactures brake components, shock absorbers and damping technologies for the global automotive, truck and trailer, public bus and rail transportation markets. | ||||||||||||||||||||||||
Interconnect Solutions manufactures and designs a wide range of highly engineered harsh environment connector solutions that make it possible to transfer signal and power between electronic devices which service global customers for the aerospace and defense, industrial and transportation, oil and gas, and medical markets. | ||||||||||||||||||||||||
Control Technologies manufactures specialized equipment, including actuation, valves, and noise and energy absorption components 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 March 31 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Industrial Process | $ | 255.6 | $ | 285.5 | $ | 20.4 | $ | 24.3 | 8 | % | 8.5 | % | ||||||||||||
Motion Technologies | 191.2 | 217.8 | 41 | 40.2 | 21.4 | % | 18.5 | % | ||||||||||||||||
Interconnect Solutions | 77.5 | 100 | 4.8 | (3.0 | ) | 6.2 | % | (3.0 | )% | |||||||||||||||
Control Technologies | 65.8 | 72.9 | 14.3 | 15.5 | 21.7 | % | 21.3 | % | ||||||||||||||||
Total segment results | 590.1 | 676.2 | 80.5 | 77 | 13.7 | % | 11.4 | % | ||||||||||||||||
Asbestos-related costs, net | — | — | (15.4 | ) | (15.8 | ) | — | — | ||||||||||||||||
Eliminations / Other corporate costs | (1.4 | ) | (1.7 | ) | (7.2 | ) | (12.9 | ) | — | — | ||||||||||||||
Total Eliminations / Corporate and Other costs | (1.4 | ) | (1.7 | ) | (22.6 | ) | (28.7 | ) | — | — | ||||||||||||||
Total | $ | 588.7 | $ | 674.5 | $ | 57.9 | $ | 48.3 | 9.8 | % | 7.2 | % | ||||||||||||
Total Assets | Capital | Depreciation & | ||||||||||||||||||||||
Expenditures | Amortization | |||||||||||||||||||||||
Three Months Ended March 31 | 2015 | 2014(a) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Industrial Process | $ | 1,111.40 | $ | 1,152.30 | $ | 6.2 | $ | 8.2 | $ | 7.6 | $ | 7.2 | ||||||||||||
Motion Technologies | 439.6 | 450.1 | 13.3 | 8.2 | 6.9 | 7.2 | ||||||||||||||||||
Interconnect Solutions | 371 | 365.4 | 7.1 | 1.2 | 2.3 | 2.8 | ||||||||||||||||||
Control Technologies | 334.4 | 334.1 | 2.4 | 0.8 | 2.5 | 2.5 | ||||||||||||||||||
Corporate and Other | 1,316.20 | 1,329.60 | 1.2 | 0.6 | 1.4 | 1.4 | ||||||||||||||||||
Total | $ | 3,572.60 | $ | 3,631.50 | $ | 30.2 | $ | 19 | $ | 20.7 | $ | 21.1 | ||||||||||||
(a) | Amounts reflect balances as of December 31, 2014. |
RESTRUCTURING_ACTIONS_RESTRUCT
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 months ended March 31, 2015 and 2014. | ||||||||
Three Months | ||||||||
For the Three Months Ended March 31 | 2015 | 2014 | ||||||
Severance costs | $ | 8.4 | $ | 15.3 | ||||
Other restructuring costs | 0.9 | — | ||||||
Total restructuring costs | $ | 9.3 | $ | 15.3 | ||||
By segment: | ||||||||
Industrial Process | $ | 8.9 | $ | 0.9 | ||||
Interconnect Solutions | (0.2 | ) | 14.4 | |||||
Control Technologies | 0.5 | — | ||||||
Corporate and Other | 0.1 | — | ||||||
The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the three months ended March 31, 2015 and 2014. | ||||||||
For the Three Months Ended March 31 | 2015 | 2014 | ||||||
Restructuring accruals - beginning balance | $ | 21.9 | $ | 14.7 | ||||
Restructuring costs | 9.3 | 15.3 | ||||||
Cash payments | (6.6 | ) | (5.8 | ) | ||||
Foreign exchange translation and other | (0.4 | ) | (0.1 | ) | ||||
Restructuring accrual - ending balance | $ | 24.2 | $ | 24.1 | ||||
By accrual type: | ||||||||
Severance accrual | $ | 22.4 | $ | 22.7 | ||||
Facility carrying and other costs accrual | 1.8 | 1.4 | ||||||
2015 Industrial Process Restructuring Actions | ||||||||
In March 2015, we announced a series of restructuring actions in the Company's Industrial Process business related to a strategic reorganization of the business and to achieve efficiencies and reduce the overall cost structure. The company expects to incur pre-tax cash costs, principally involuntary severance costs of approximately $13 to $14 and other non-cash pre-tax costs of approximately $4 to $5 in aggregate related to this action. The costs incurred during the three months ended March 31, 2015 primarily relate to employee severance for approximately 200 planned headcount reductions. We expect to incur the remaining restructuring costs of approximately $8 to $10 over the next 6 months related to this action. The following table provides a rollforward of the restructuring accrual associated with the 2015 Industrial Process restructuring actions. | ||||||||
For the Three Months Ended March 31 | 2015 | |||||||
Restructuring accruals - beginning balance | $ | — | ||||||
Restructuring costs | 8.9 | |||||||
Cash payments | (1.0 | ) | ||||||
Restructuring accruals - ending balance | $ | 7.9 | ||||||
2013–2014 Interconnect Solutions Restructuring Actions | ||||||||
In 2013, we initiated a comprehensive restructuring plan to improve the overall cost structure of our Interconnect Solutions (ICS) segment, including the transition of certain production lines from one location to another existing lower cost manufacturing site. During the first quarter of 2015, we reversed $0.2 of a previously estimated restructuring liability and made cash payments of $3.4, resulting in a remaining liability of $13.3 as of March 31, 2015. We do not expect to incur any additional charges related to this restructuring action. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
For the three months ended March 31, 2015 and 2014, the Company recognized income tax expense of $18.1 and $13.0, respectively, representing an effective tax rate of 31.9% and 27.5%. The higher effective tax rate in 2015 is primarily driven by a pre-tax loss from operations in Germany for which no income tax benefit is recorded. The Company continues to benefit from earnings eligible for the tax holiday in Korea, as well as a larger mix of earnings in non-U.S. jurisdictions with favorable tax rates. | |
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 U.S. federal income tax audit for the years 2009 through 2011 has received Joint Committee on Taxation review. We anticipate that we will receive the final audit report within the current year. 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 12 months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could change by approximately $86.6 due to changes in audit status, expiration of statutes of limitations and other events. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 months ended March 31, 2015 and 2014. | |||||||||
Three Months | |||||||||
For the Periods Ended March 31 | 2015 | 2014 | |||||||
Basic weighted average common shares outstanding | 90.6 | 91.4 | |||||||
Add: Dilutive impact of outstanding equity awards | 1 | 1.4 | |||||||
Diluted weighted average common shares outstanding | 91.6 | 92.8 | |||||||
The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and 2014 because they were anti-dilutive. | |||||||||
Three Months | |||||||||
For the Periods Ended March 31 | 2015 | 2014 | |||||||
Anti-dilutive stock options | 0.3 | 0.2 | |||||||
Average exercise price | $ | 42.9 | $ | 43.52 | |||||
Years of expiration | 2024 - 2025 | 2024 | |||||||
In addition, 0.2 of outstanding return on invested capital (ROIC) awards were excluded from the computation of diluted earnings per share for the three months ended March 31, 2015 and 2014 respectively, as the necessary performance conditions have not been yet been satisfied. |
RECEIVABLES_NET
RECEIVABLES, NET | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Receivables [Abstract] | ||||||||||||
RECEIVABLES, NET | RECEIVABLES, NET | |||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Trade accounts receivable | $ | 513.3 | $ | 476.8 | ||||||||
Notes receivable | 4 | 6.1 | ||||||||||
Other | 31.7 | 30.5 | ||||||||||
Receivables, gross | 549 | 513.4 | ||||||||||
Less: Allowance for doubtful accounts | 11.8 | 13.3 | ||||||||||
Receivables, net | $ | 537.2 | $ | 500.1 | ||||||||
INVENTORIES_NET
INVENTORIES, NET | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||
INVENTORIES, NET | INVENTORIES, NET | |||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Finished goods | $ | 52 | $ | 70.5 | ||||||||
Work in process | 67.5 | 59.9 | ||||||||||
Raw materials | 151.6 | 148.5 | ||||||||||
Inventoried costs related to long-term contracts | 53.3 | 61.4 | ||||||||||
Total inventory before progress payments | 324.4 | 340.3 | ||||||||||
Less: Progress payments | (36.8 | ) | (38.0 | ) | ||||||||
Inventories, net | $ | 287.6 | $ | 302.3 | ||||||||
OTHER_CURRENT_AND_NONCURRENT_A
OTHER CURRENT AND NON-CURRENT ASSETS | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||
OTHER CURRENT AND NON-CURRENT ASSETS | OTHER CURRENT AND NON-CURRENT ASSETS | |||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Asbestos-related current assets | $ | 102.3 | $ | 102.4 | ||||||||
Current deferred income taxes | 53 | 56.2 | ||||||||||
Prepaid income taxes | 20.6 | 25.9 | ||||||||||
Short-term investments | 15.3 | 5.4 | ||||||||||
Other | 52.6 | 59.9 | ||||||||||
Other current assets | $ | 243.8 | $ | 249.8 | ||||||||
Other employee benefit-related assets | $ | 91.4 | $ | 93 | ||||||||
Capitalized software costs | 29.7 | 26.8 | ||||||||||
Other | 30.2 | 30 | ||||||||||
Other non-current assets | $ | 151.3 | $ | 149.8 | ||||||||
PLANT_PROPERTY_AND_EQUIPMENT_N
PLANT, PROPERTY AND EQUIPMENT, NET | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
PLANT, PROPERTY AND EQUIPMENT, NET | PLANT, PROPERTY AND EQUIPMENT, NET | |||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Land and improvements | $ | 23.2 | $ | 24 | ||||||||
Machinery and equipment | 836.7 | 870.3 | ||||||||||
Buildings and improvements | 221.5 | 228.8 | ||||||||||
Furniture, fixtures and office equipment | 62.9 | 65.8 | ||||||||||
Construction work in progress | 36.1 | 44.5 | ||||||||||
Other | 6.8 | 7.8 | ||||||||||
Plant, property and equipment, gross | 1,187.20 | 1,241.20 | ||||||||||
Less: Accumulated depreciation | (767.9 | ) | (797.3 | ) | ||||||||
Plant, property and equipment, net | $ | 419.3 | $ | 443.9 | ||||||||
Depreciation expense of $17.5 and $17.0was recognized in the three months ended March 31, 2015 and 2014, respectively. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||
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 three months ended March 31, 2015 by segment. | ||||||||||||||||||||||||||||||||||||
Industrial | Motion | Interconnect | Control | Total | ||||||||||||||||||||||||||||||||
Process | Technologies | Solutions | Technologies | |||||||||||||||||||||||||||||||||
Goodwill - December 31, 2014 | $ | 331.9 | $ | 43.9 | $ | 71.2 | $ | 185.1 | $ | 632.1 | ||||||||||||||||||||||||||
Foreign currency | (14.8 | ) | (4.6 | ) | (2.0 | ) | — | (21.4 | ) | |||||||||||||||||||||||||||
Goodwill - March 31, 2015 | $ | 317.1 | $ | 39.3 | $ | 69.2 | $ | 185.1 | $ | 610.7 | ||||||||||||||||||||||||||
Other Intangible Assets, Net | ||||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net Intangibles | Gross | Accumulated Amortization | Net Intangibles | |||||||||||||||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 81 | $ | (39.1 | ) | $ | 41.9 | $ | 83.1 | $ | (38.3 | ) | $ | 44.8 | ||||||||||||||||||||||
Proprietary technology | 26.7 | (10.1 | ) | 16.6 | 28.1 | (9.9 | ) | 18.2 | ||||||||||||||||||||||||||||
Patents and other | 14 | (12.3 | ) | 1.7 | 15.2 | (13.1 | ) | 2.1 | ||||||||||||||||||||||||||||
Finite-lived intangible total | 121.7 | (61.5 | ) | 60.2 | 126.4 | (61.3 | ) | 65.1 | ||||||||||||||||||||||||||||
Indefinite-lived intangibles | 25.2 | — | 25.2 | 26.3 | — | 26.3 | ||||||||||||||||||||||||||||||
Other Intangible Assets | $ | 146.9 | $ | (61.5 | ) | $ | 85.4 | $ | 152.7 | $ | (61.3 | ) | $ | 91.4 | ||||||||||||||||||||||
Amortization expense related to finite-lived intangible assets was $2.2 and $3.0 for the three months ended March 31, 2015, and 2014, respectively. |
ACCRUED_AND_OTHER_CURRENT_LIAB
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Payables and Accruals [Abstract] | ||||||||||||
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES | |||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Compensation and other employee-related benefits | $ | 143 | $ | 176.5 | ||||||||
Asbestos-related liabilities | 105.7 | 106.6 | ||||||||||
Customer-related liabilities | 45.2 | 41.3 | ||||||||||
Accrued income taxes and other tax-related liabilities | 31.4 | 28 | ||||||||||
Environmental liabilities and other legal matters | 29.8 | 31.6 | ||||||||||
Accrued restructuring | 24.2 | 21.9 | ||||||||||
Accrued warranty costs | 23.4 | 29.4 | ||||||||||
Other accrued liabilities | 30.6 | 30.5 | ||||||||||
Accrued liabilities | $ | 433.3 | $ | 465.8 | ||||||||
Deferred income taxes and other tax-related accruals | $ | 113.5 | $ | 112.2 | ||||||||
Environmental liabilities | 75.8 | 80.2 | ||||||||||
Compensation and other employee-related benefits | 34.9 | 38.6 | ||||||||||
Other | 36.6 | 38.5 | ||||||||||
Other non-current liabilities | $ | 260.8 | $ | 269.5 | ||||||||
COMMERCIAL_PAPER_COMMERCIAL_PA
COMMERCIAL PAPER COMMERCIAL PAPER (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
COMMERCIAL PAPER [Abstract] | |
Commercial Paper [Text Block] | COMMERCIAL PAPER |
Commercial paper outstanding as of March 31, 2015 was $113.5, with an associated weighted average interest rate of 0.67% and maturity terms less than one month from the date of issuance. There was no commercial paper outstanding as of December 31, 2014. |
POSTRETIREMENT_BENEFIT_PLANS
POSTRETIREMENT BENEFIT PLANS | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS | |||||||||||||||||||||||||||||||||||
The following table provides the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three months ended March 31, 2015 and 2014. | ||||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Service cost | $ | 1.3 | $ | 0.2 | $ | 1.5 | $ | 1.2 | $ | 0.5 | $ | 1.7 | ||||||||||||||||||||||||
Interest cost | 3.6 | 1.2 | 4.8 | 3.9 | 2 | 5.9 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (5.1 | ) | (0.2 | ) | (5.3 | ) | (5.2 | ) | (0.2 | ) | (5.4 | ) | ||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 0.2 | (2.7 | ) | (2.5 | ) | 0.2 | (1.5 | ) | (1.3 | ) | ||||||||||||||||||||||||||
Amortization of net actuarial loss | 2.1 | 1.1 | 3.2 | 1.6 | 0.7 | 2.3 | ||||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 2.1 | $ | (0.4 | ) | $ | 1.7 | $ | 1.7 | $ | 1.5 | $ | 3.2 | |||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, we made contributions to our global postretirement plans of $2.6 and $2.1, respectively. We expect to make contributions of approximately $10 to $15 to our global postretirement plans during the remainder of 2015, principally related to other postretirement employee benefit plans. | ||||||||||||||||||||||||||||||||||||
During the three months ended March 31, 2015 and 2014, $0.5 and $0.6, net of tax, respectively, was amortized from accumulated other comprehensive income into earnings related to prior service cost and net actuarial loss. 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 | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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) costs are primarily recorded within general and administrative expenses. The following table provides the components of LTIP costs for the three months ended March 31, 2015 and 2014. | |||||||
For the Three Months Ended March 31 | 2015 | 2014 | |||||
Equity based awards | $ | 3.1 | $ | 3.3 | |||
Liability-based awards | 0.2 | 0.1 | |||||
Total share-based compensation expense | $ | 3.3 | $ | 3.4 | |||
At March 31, 2015, there was estimated unrecognized compensation cost of $32.9 related to unvested equity-based awards that is expected to be recognized ratably over a weighted-average period of 2.4 years, and $2.3 related to unvested liability-based awards that are expected to be recognized ratably over a weighted-average period of 1.9 years. | |||||||
During the three months ended March 31, 2015, we granted the following LTIP awards as provided in the table below: | |||||||
# of Awards Granted | Grant Date Fair Value | ||||||
Non-qualified stock options (NQOs) | 0.2 | $ | 11.23 | ||||
Restricted stock units (RSUs) | 0.2 | $ | 41.52 | ||||
Total shareholder return awards (TSR) | 0.1 | $ | 45.67 | ||||
Return on invested capital awards (ROIC) | 0.1 | $ | 40.12 | ||||
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 three months ended March 31, 2015 and 2014, 0.1 and 0.5 stock options were exercised resulting in proceeds of $2.0 and $9.0, respectively. In addition, restricted stock units of 0.2 vested and were issued during both the three months ended March 31, 2015 and 2014. | |||||||
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 for the first quarter 2015 NQO grants. | |||||||
Dividend yield | 1.10% | ||||||
Expected volatility | 29.40% | ||||||
Expected life | 5.8 years | ||||||
Risk-free rates | 1.70% | ||||||
Grant date fair value | $11.23 |
CAPITAL_STOCK
CAPITAL STOCK | 3 Months Ended |
Mar. 31, 2015 | |
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 (2006 Share Repurchase Program). 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 2.0 shares of common stock for $80.0 during the three months ended March 31, 2015 under this program. We did not repurchase any shares of common stock during the three months ended March 31, 2014. To date, under the 2006 Share Repurchase Program, the Company has repurchased 18.4 shares for $759.3. | |
Separate from the 2006 Share Repurchase Program, the Company repurchased 0.1 shares and 0.1 shares for an aggregate price of $3.6 and $4.8, during the three months ended March 31, 2015 and 2014, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock units. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
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 | ||||||||||||
ITT, including its subsidiary Goulds Pumps, Inc., has been sued, along with many other companies in product liability lawsuits alleging personal injury due to asbestos exposure. These claims generally allege that certain products sold by us or our subsidiaries prior to 1985 contained a part manufactured by a third party (e.g., a gasket) which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. As of March 31, 2015, there were 47 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 Three Months Ended March 31 (in thousands) | 2015 | 2014 | ||||||||||
Pending claims – Beginning | 62 | 79 | ||||||||||
New claims | 1 | 1 | ||||||||||
Settlements | — | (2 | ) | |||||||||
Dismissals | (3 | ) | (9 | ) | ||||||||
Pending claims – Ending | 60 | 69 | ||||||||||
Pending inactive claims(a) | 13 | 18 | ||||||||||
Pending active claims | 47 | 51 | ||||||||||
(a) | 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. There were no inactive claims dismissed or settled during the first quarter of 2015 or 2014. | |||||||||||
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. | ||||||||||||
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 | ||||||||||||
As part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent qualitative and quantitative data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. Based on this evaluation, the Company determined that no change in the estimate was warranted for the period ended March 31, 2015 other than the incremental accrual to maintain a rolling 10-year forecast period. The net asbestos charge for the three months ended March 31, 2015 and 2014 was $15.4 and $15.8, respectively. | ||||||||||||
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 $758.3 and $746.8 as of March 31, 2015 and December 31, 2014, respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the three months ended March 31, 2015. | ||||||||||||
Liability | Asset | Net | ||||||||||
Balance as of December 31, 2014 | $ | 1,223.20 | $ | 476.4 | $ | 746.8 | ||||||
Asbestos provision | 18.1 | 2.7 | 15.4 | |||||||||
Net cash activity | (14.9 | ) | (11.0 | ) | (3.9 | ) | ||||||
Balance as of March 31, 2015 | $ | 1,226.40 | $ | 468.1 | $ | 758.3 | ||||||
Current portion | $ | 105.7 | $ | 102.3 | ||||||||
Noncurrent portion | $ | 1,120.70 | $ | 365.8 | ||||||||
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 three months ended March 31, 2015. | ||||||||||||
Liability | Asset | Net | ||||||||||
Balance as of December 31, 2014 | $ | 89.9 | $ | 7.7 | $ | 82.2 | ||||||
Change in estimates for pre-existing accruals | 0.2 | — | 0.2 | |||||||||
Net cash activity | (4.4 | ) | (0.2 | ) | (4.2 | ) | ||||||
Foreign currency | (0.3 | ) | — | (0.3 | ) | |||||||
Balance as of March 31, 2015 | $ | 85.4 | $ | 7.5 | $ | 77.9 | ||||||
We are currently involved with 52 active environmental investigation and remediation sites. At March 31, 2015, we have estimated the potential high-end liability range of environmental-related matters to be $152. | ||||||||||||
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. |
SUBSEQUENT_EVENTS_Subsequent_E
SUBSEQUENT EVENTS Subsequent Events (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
Acquisition of Hartzell Aerospace | |
Early in the second quarter of 2015, we completed the acquisition of Hartzell Aerospace (Hartzell) for a purchase price of $53.1, net of cash acquired, that was funded through additional commercial paper borrowings. Hartzell, which reported 2014 revenues of $34, designs and manufactures products to support aerospace applications, featuring a differentiated portfolio of environmental control system components and an established aftermarket business. Hartzell employs approximately 240 employees at its two facilities in California. The acquisition will be reported within the Control Technologies segment and complements the ITT aerospace growth platform, with customer and sales channel alignment and key high-growth and next-generation platform expansion opportunities. |
DESCRIPTION_OF_BUSINESS_AND_BA1
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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 industrial pumping and complementary equipment; Motion Technologies, consisting of friction and shock and vibration equipment; Interconnect Solutions, consisting of electronic connectors; and Control Technologies, consisting of fluid handling, motion control and vibration and shock isolation products. Financial information for our segments is presented in Note 3, “Segment Information.” | |
On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related businesses, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this Report as the “2011 spin-off.” | |
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, 2014 (2014 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 2014 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. |
RECENT_ACCOUNTING_PRONOUNCEMEN1
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Recent Acconting Pronouncements [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Pronouncements Not Yet Adopted |
In May 2014, the Financial Accounting Standards Board (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. In April 2015, the FASB voted to propose a one-year deferral of the effective date of the new revenue standard. Under the proposal, the new guidance will be effective for the Company beginning in its first quarter of 2018. 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. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||
Schedule of Segment Reporting Information by Segment Revenue | ||||||||||||||||||||||||
Revenue | Operating Income | Operating Margin | ||||||||||||||||||||||
Three Months Ended March 31 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Industrial Process | $ | 255.6 | $ | 285.5 | $ | 20.4 | $ | 24.3 | 8 | % | 8.5 | % | ||||||||||||
Motion Technologies | 191.2 | 217.8 | 41 | 40.2 | 21.4 | % | 18.5 | % | ||||||||||||||||
Interconnect Solutions | 77.5 | 100 | 4.8 | (3.0 | ) | 6.2 | % | (3.0 | )% | |||||||||||||||
Control Technologies | 65.8 | 72.9 | 14.3 | 15.5 | 21.7 | % | 21.3 | % | ||||||||||||||||
Total segment results | 590.1 | 676.2 | 80.5 | 77 | 13.7 | % | 11.4 | % | ||||||||||||||||
Asbestos-related costs, net | — | — | (15.4 | ) | (15.8 | ) | — | — | ||||||||||||||||
Eliminations / Other corporate costs | (1.4 | ) | (1.7 | ) | (7.2 | ) | (12.9 | ) | — | — | ||||||||||||||
Total Eliminations / Corporate and Other costs | (1.4 | ) | (1.7 | ) | (22.6 | ) | (28.7 | ) | — | — | ||||||||||||||
Total | $ | 588.7 | $ | 674.5 | $ | 57.9 | $ | 48.3 | 9.8 | % | 7.2 | % | ||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | ||||||||||||||||||||||||
Total Assets | Capital | Depreciation & | ||||||||||||||||||||||
Expenditures | Amortization | |||||||||||||||||||||||
Three Months Ended March 31 | 2015 | 2014(a) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||
Industrial Process | $ | 1,111.40 | $ | 1,152.30 | $ | 6.2 | $ | 8.2 | $ | 7.6 | $ | 7.2 | ||||||||||||
Motion Technologies | 439.6 | 450.1 | 13.3 | 8.2 | 6.9 | 7.2 | ||||||||||||||||||
Interconnect Solutions | 371 | 365.4 | 7.1 | 1.2 | 2.3 | 2.8 | ||||||||||||||||||
Control Technologies | 334.4 | 334.1 | 2.4 | 0.8 | 2.5 | 2.5 | ||||||||||||||||||
Corporate and Other | 1,316.20 | 1,329.60 | 1.2 | 0.6 | 1.4 | 1.4 | ||||||||||||||||||
Total | $ | 3,572.60 | $ | 3,631.50 | $ | 30.2 | $ | 19 | $ | 20.7 | $ | 21.1 | ||||||||||||
RESTRUCTURING_ACTIONS_RESTRUCT1
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring and Related Costs [Table Text Block] | The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Income Statements for the three months ended March 31, 2015 and 2014. | |||||||
Three Months | ||||||||
For the Three Months Ended March 31 | 2015 | 2014 | ||||||
Severance costs | $ | 8.4 | $ | 15.3 | ||||
Other restructuring costs | 0.9 | — | ||||||
Total restructuring costs | $ | 9.3 | $ | 15.3 | ||||
By segment: | ||||||||
Industrial Process | $ | 8.9 | $ | 0.9 | ||||
Interconnect Solutions | (0.2 | ) | 14.4 | |||||
Control Technologies | 0.5 | — | ||||||
Corporate and Other | 0.1 | — | ||||||
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 three months ended March 31, 2015 and 2014. | |||||||
For the Three Months Ended March 31 | 2015 | 2014 | ||||||
Restructuring accruals - beginning balance | $ | 21.9 | $ | 14.7 | ||||
Restructuring costs | 9.3 | 15.3 | ||||||
Cash payments | (6.6 | ) | (5.8 | ) | ||||
Foreign exchange translation and other | (0.4 | ) | (0.1 | ) | ||||
Restructuring accrual - ending balance | $ | 24.2 | $ | 24.1 | ||||
By accrual type: | ||||||||
Severance accrual | $ | 22.4 | $ | 22.7 | ||||
Facility carrying and other costs accrual | 1.8 | 1.4 | ||||||
2015 Industrial Process Restructuring Action [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | 2015 Industrial Process Restructuring Actions | |||||||
In March 2015, we announced a series of restructuring actions in the Company's Industrial Process business related to a strategic reorganization of the business and to achieve efficiencies and reduce the overall cost structure. The company expects to incur pre-tax cash costs, principally involuntary severance costs of approximately $13 to $14 and other non-cash pre-tax costs of approximately $4 to $5 in aggregate related to this action. The costs incurred during the three months ended March 31, 2015 primarily relate to employee severance for approximately 200 planned headcount reductions. We expect to incur the remaining restructuring costs of approximately $8 to $10 over the next 6 months related to this action. The following table provides a rollforward of the restructuring accrual associated with the 2015 Industrial Process restructuring actions. | ||||||||
For the Three Months Ended March 31 | 2015 | |||||||
Restructuring accruals - beginning balance | $ | — | ||||||
Restructuring costs | 8.9 | |||||||
Cash payments | (1.0 | ) | ||||||
Restructuring accruals - ending balance | $ | 7.9 | ||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
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 months ended March 31, 2015 and 2014. | ||||||||
Three Months | |||||||||
For the Periods Ended March 31 | 2015 | 2014 | |||||||
Basic weighted average common shares outstanding | 90.6 | 91.4 | |||||||
Add: Dilutive impact of outstanding equity awards | 1 | 1.4 | |||||||
Diluted weighted average common shares outstanding | 91.6 | 92.8 | |||||||
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 months ended March 31, 2015 and 2014 because they were anti-dilutive. | ||||||||
Three Months | |||||||||
For the Periods Ended March 31 | 2015 | 2014 | |||||||
Anti-dilutive stock options | 0.3 | 0.2 | |||||||
Average exercise price | $ | 42.9 | $ | 43.52 | |||||
Years of expiration | 2024 - 2025 | 2024 | |||||||
RECEIVABLES_NET_Tables
RECEIVABLES, NET (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Receivables [Abstract] | ||||||||||||
RECEIVABLES, NET | ||||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Trade accounts receivable | $ | 513.3 | $ | 476.8 | ||||||||
Notes receivable | 4 | 6.1 | ||||||||||
Other | 31.7 | 30.5 | ||||||||||
Receivables, gross | 549 | 513.4 | ||||||||||
Less: Allowance for doubtful accounts | 11.8 | 13.3 | ||||||||||
Receivables, net | $ | 537.2 | $ | 500.1 | ||||||||
INVENTORIES_NET_Tables
INVENTORIES, NET (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||
Inventories, Net | ||||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Finished goods | $ | 52 | $ | 70.5 | ||||||||
Work in process | 67.5 | 59.9 | ||||||||||
Raw materials | 151.6 | 148.5 | ||||||||||
Inventoried costs related to long-term contracts | 53.3 | 61.4 | ||||||||||
Total inventory before progress payments | 324.4 | 340.3 | ||||||||||
Less: Progress payments | (36.8 | ) | (38.0 | ) | ||||||||
Inventories, net | $ | 287.6 | $ | 302.3 | ||||||||
OTHER_CURRENT_AND_NONCURRENT_A1
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||||||||
Other Current and Non Current Assets | ||||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Asbestos-related current assets | $ | 102.3 | $ | 102.4 | ||||||||
Current deferred income taxes | 53 | 56.2 | ||||||||||
Prepaid income taxes | 20.6 | 25.9 | ||||||||||
Short-term investments | 15.3 | 5.4 | ||||||||||
Other | 52.6 | 59.9 | ||||||||||
Other current assets | $ | 243.8 | $ | 249.8 | ||||||||
Other employee benefit-related assets | $ | 91.4 | $ | 93 | ||||||||
Capitalized software costs | 29.7 | 26.8 | ||||||||||
Other | 30.2 | 30 | ||||||||||
Other non-current assets | $ | 151.3 | $ | 149.8 | ||||||||
PLANT_PROPERTY_AND_EQUIPMENT_N1
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Plant, Property and Equipment, Net | ||||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Land and improvements | $ | 23.2 | $ | 24 | ||||||||
Machinery and equipment | 836.7 | 870.3 | ||||||||||
Buildings and improvements | 221.5 | 228.8 | ||||||||||
Furniture, fixtures and office equipment | 62.9 | 65.8 | ||||||||||
Construction work in progress | 36.1 | 44.5 | ||||||||||
Other | 6.8 | 7.8 | ||||||||||
Plant, property and equipment, gross | 1,187.20 | 1,241.20 | ||||||||||
Less: Accumulated depreciation | (767.9 | ) | (797.3 | ) | ||||||||
Plant, property and equipment, net | $ | 419.3 | $ | 443.9 | ||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||
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 three months ended March 31, 2015 by segment. | ||||||||||||||||||||||||||||||||||||
Industrial | Motion | Interconnect | Control | Total | ||||||||||||||||||||||||||||||||
Process | Technologies | Solutions | Technologies | |||||||||||||||||||||||||||||||||
Goodwill - December 31, 2014 | $ | 331.9 | $ | 43.9 | $ | 71.2 | $ | 185.1 | $ | 632.1 | ||||||||||||||||||||||||||
Foreign currency | (14.8 | ) | (4.6 | ) | (2.0 | ) | — | (21.4 | ) | |||||||||||||||||||||||||||
Goodwill - March 31, 2015 | $ | 317.1 | $ | 39.3 | $ | 69.2 | $ | 185.1 | $ | 610.7 | ||||||||||||||||||||||||||
Other Intangible Assets | Other Intangible Assets, Net | |||||||||||||||||||||||||||||||||||
31-Mar-15 | 31-Dec-14 | |||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net Intangibles | Gross | Accumulated Amortization | Net Intangibles | |||||||||||||||||||||||||||||||
Carrying | Carrying | |||||||||||||||||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | 81 | $ | (39.1 | ) | $ | 41.9 | $ | 83.1 | $ | (38.3 | ) | $ | 44.8 | ||||||||||||||||||||||
Proprietary technology | 26.7 | (10.1 | ) | 16.6 | 28.1 | (9.9 | ) | 18.2 | ||||||||||||||||||||||||||||
Patents and other | 14 | (12.3 | ) | 1.7 | 15.2 | (13.1 | ) | 2.1 | ||||||||||||||||||||||||||||
Finite-lived intangible total | 121.7 | (61.5 | ) | 60.2 | 126.4 | (61.3 | ) | 65.1 | ||||||||||||||||||||||||||||
Indefinite-lived intangibles | 25.2 | — | 25.2 | 26.3 | — | 26.3 | ||||||||||||||||||||||||||||||
Other Intangible Assets | $ | 146.9 | $ | (61.5 | ) | $ | 85.4 | $ | 152.7 | $ | (61.3 | ) | $ | 91.4 | ||||||||||||||||||||||
ACCRUED_AND_OTHER_CURRENT_LIAB1
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Payables and Accruals [Abstract] | ||||||||||||
Accrued Liabilities and Other Non-Current Liabilities | ||||||||||||
March 31, | December 31, | |||||||||||
2015 | 2014 | |||||||||||
Compensation and other employee-related benefits | $ | 143 | $ | 176.5 | ||||||||
Asbestos-related liabilities | 105.7 | 106.6 | ||||||||||
Customer-related liabilities | 45.2 | 41.3 | ||||||||||
Accrued income taxes and other tax-related liabilities | 31.4 | 28 | ||||||||||
Environmental liabilities and other legal matters | 29.8 | 31.6 | ||||||||||
Accrued restructuring | 24.2 | 21.9 | ||||||||||
Accrued warranty costs | 23.4 | 29.4 | ||||||||||
Other accrued liabilities | 30.6 | 30.5 | ||||||||||
Accrued liabilities | $ | 433.3 | $ | 465.8 | ||||||||
Deferred income taxes and other tax-related accruals | $ | 113.5 | $ | 112.2 | ||||||||
Environmental liabilities | 75.8 | 80.2 | ||||||||||
Compensation and other employee-related benefits | 34.9 | 38.6 | ||||||||||
Other | 36.6 | 38.5 | ||||||||||
Other non-current liabilities | $ | 260.8 | $ | 269.5 | ||||||||
POSTRETIREMENT_BENEFIT_PLANS_T
POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans | The following table provides the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three months ended March 31, 2015 and 2014. | |||||||||||||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Pension | Other | Total | Pension | Other | Total | ||||||||||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||||||||||||||
Service cost | $ | 1.3 | $ | 0.2 | $ | 1.5 | $ | 1.2 | $ | 0.5 | $ | 1.7 | ||||||||||||||||||||||||
Interest cost | 3.6 | 1.2 | 4.8 | 3.9 | 2 | 5.9 | ||||||||||||||||||||||||||||||
Expected return on plan assets | (5.1 | ) | (0.2 | ) | (5.3 | ) | (5.2 | ) | (0.2 | ) | (5.4 | ) | ||||||||||||||||||||||||
Amortization of prior service cost (benefit) | 0.2 | (2.7 | ) | (2.5 | ) | 0.2 | (1.5 | ) | (1.3 | ) | ||||||||||||||||||||||||||
Amortization of net actuarial loss | 2.1 | 1.1 | 3.2 | 1.6 | 0.7 | 2.3 | ||||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 2.1 | $ | (0.4 | ) | $ | 1.7 | $ | 1.7 | $ | 1.5 | $ | 3.2 | |||||||||||||||||||||||
LONGTERM_INCENTIVE_EMPLOYEE_CO1
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||
Long-Term Incentive Employee Compensation Costs | The following table provides the components of LTIP costs for the three months ended March 31, 2015 and 2014. | ||||||
For the Three Months Ended March 31 | 2015 | 2014 | |||||
Equity based awards | $ | 3.1 | $ | 3.3 | |||
Liability-based awards | 0.2 | 0.1 | |||||
Total share-based compensation expense | $ | 3.3 | $ | 3.4 | |||
Summary of Long-Term Incentive Plan Award Grants during year | During the three months ended March 31, 2015, we granted the following LTIP awards as provided in the table below: | ||||||
# of Awards Granted | Grant Date Fair Value | ||||||
Non-qualified stock options (NQOs) | 0.2 | $ | 11.23 | ||||
Restricted stock units (RSUs) | 0.2 | $ | 41.52 | ||||
Total shareholder return awards (TSR) | 0.1 | $ | 45.67 | ||||
Return on invested capital awards (ROIC) | 0.1 | $ | 40.12 | ||||
Weighted Average Grant Date Fair Value Assumptions for NQOs | 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 for the first quarter 2015 NQO grants. | ||||||
Dividend yield | 1.10% | ||||||
Expected volatility | 29.40% | ||||||
Expected life | 5.8 years | ||||||
Risk-free rates | 1.70% | ||||||
Grant date fair value | $11.23 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||
Product Liability Contingencies [Table Text Block] | As of March 31, 2015, there were 47 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 Three Months Ended March 31 (in thousands) | 2015 | 2014 | ||||||||||
Pending claims – Beginning | 62 | 79 | ||||||||||
New claims | 1 | 1 | ||||||||||
Settlements | — | (2 | ) | |||||||||
Dismissals | (3 | ) | (9 | ) | ||||||||
Pending claims – Ending | 60 | 69 | ||||||||||
Pending inactive claims(a) | 13 | 18 | ||||||||||
Pending active claims | 47 | 51 | ||||||||||
(a) | 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. There were no inactive claims dismissed or settled during the first quarter of 2015 or 2014. | |||||||||||
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 $758.3 and $746.8 as of March 31, 2015 and December 31, 2014, respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the three months ended March 31, 2015. | ||||||||||||
Liability | Asset | Net | ||||||||||
Balance as of December 31, 2014 | $ | 1,223.20 | $ | 476.4 | $ | 746.8 | ||||||
Asbestos provision | 18.1 | 2.7 | 15.4 | |||||||||
Net cash activity | (14.9 | ) | (11.0 | ) | (3.9 | ) | ||||||
Balance as of March 31, 2015 | $ | 1,226.40 | $ | 468.1 | $ | 758.3 | ||||||
Current portion | $ | 105.7 | $ | 102.3 | ||||||||
Noncurrent portion | $ | 1,120.70 | $ | 365.8 | ||||||||
Rollforward of Environmental Liability and Related Assets | The following table provides a rollforward of the estimated environmental liability and related assets for the three months ended March 31, 2015. | |||||||||||
Liability | Asset | Net | ||||||||||
Balance as of December 31, 2014 | $ | 89.9 | $ | 7.7 | $ | 82.2 | ||||||
Change in estimates for pre-existing accruals | 0.2 | — | 0.2 | |||||||||
Net cash activity | (4.4 | ) | (0.2 | ) | (4.2 | ) | ||||||
Foreign currency | (0.3 | ) | — | (0.3 | ) | |||||||
Balance as of March 31, 2015 | $ | 85.4 | $ | 7.5 | $ | 77.9 | ||||||
SEGMENT_INFORMATION_Schedule_o
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Revenue (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 4 | |
Revenue | $588.70 | $674.50 |
Operating Income | 57.9 | 48.3 |
Operating Margin | 9.80% | 7.20% |
Total Segment Results [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 590.1 | 676.2 |
Operating Income | 80.5 | 77 |
Operating Margin | 13.70% | 11.40% |
Industrial Process [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 255.6 | 285.5 |
Operating Income | 20.4 | 24.3 |
Operating Margin | 8.00% | 8.50% |
Motion Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 191.2 | 217.8 |
Operating Income | 41 | 40.2 |
Operating Margin | 21.40% | 18.50% |
Interconnect Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 77.5 | 100 |
Operating Income | 4.8 | -3 |
Operating Margin | 6.20% | -3.00% |
Control Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | 65.8 | 72.9 |
Operating Income | 14.3 | 15.5 |
Operating Margin | 21.70% | 21.30% |
Total Eliminations / Corporate and Other costs | ||
Segment Reporting Information [Line Items] | ||
Revenue | -1.4 | -1.7 |
Operating Income | -22.6 | -28.7 |
Operating Margin | 0.00% | 0.00% |
Asbestos-related costs, net | ||
Segment Reporting Information [Line Items] | ||
Revenue | 0 | 0 |
Operating Income | -15.4 | -15.8 |
Operating Margin | 0.00% | 0.00% |
Eliminations / Other corporate costs | ||
Segment Reporting Information [Line Items] | ||
Revenue | -1.4 | -1.7 |
Operating Income | ($7.20) | ($12.90) |
Operating Margin | 0.00% | 0.00% |
SEGMENT_INFORMATION_Schedule_o1
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | ||||
Total Assets | $3,572.60 | $3,631.50 | [1] | |
Capital Expenditures | 30.2 | 19 | ||
Depreciation & Amortization | 20.7 | 21.1 | ||
Industrial Process [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,111.40 | 1,152.30 | [1] | |
Capital Expenditures | 6.2 | 8.2 | ||
Depreciation & Amortization | 7.6 | 7.2 | ||
Motion Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 439.6 | 450.1 | [1] | |
Capital Expenditures | 13.3 | 8.2 | ||
Depreciation & Amortization | 6.9 | 7.2 | ||
Interconnect Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 371 | 365.4 | [1] | |
Capital Expenditures | 7.1 | 1.2 | ||
Depreciation & Amortization | 2.3 | 2.8 | ||
Control Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 334.4 | 334.1 | [1] | |
Capital Expenditures | 2.4 | 0.8 | ||
Depreciation & Amortization | 2.5 | 2.5 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,316.20 | 1,329.60 | [1] | |
Capital Expenditures | 1.2 | 0.6 | ||
Depreciation & Amortization | $1.40 | $1.40 | ||
[1] | Amounts reflect balances as of December 31, 2014. |
Recovered_Sheet1
RESTRUCTURING ACTIONS Restructuring Costs (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $9.30 | $15.30 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.9 | 0 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 8.4 | 15.3 |
Interconnect Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | -0.2 | 14.4 |
Industrial Process [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 8.9 | 0.9 |
Control Technologies [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.5 | 0 |
Corporate and Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $0.10 | $0 |
Recovered_Sheet2
RESTRUCTURING ACTIONS Restructuring Accrual Rollforward (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve - Beginning Balance | $21.90 | $14.70 |
Restructuring costs | 9.3 | 15.3 |
Payments for Restructuring | -6.6 | -5.8 |
Restructuring Reserve, Translation Adjustment | -0.4 | -0.1 |
Restructuring Reserve - Ending Balance | 24.2 | 24.1 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 8.4 | 15.3 |
Restructuring Reserve - Ending Balance | 22.4 | 22.7 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.9 | 0 |
Restructuring Reserve - Ending Balance | 1.8 | 1.4 |
Industrial Process [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 8.9 | 0.9 |
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve - Beginning Balance | 0 | |
Restructuring costs | 8.9 | |
Payments for Restructuring | -1 | |
Restructuring Reserve - Ending Balance | $7.90 |
RESTRUCTURING_ACTIONS_Restruct2
RESTRUCTURING ACTIONS Restructuring Textuals (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $9.30 | $15.30 | ||
Payments for Restructuring | 6.6 | 5.8 | ||
Accrued restructuring | 24.2 | 24.1 | 21.9 | 14.7 |
Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 8.9 | 0.9 | ||
Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | -0.2 | 14.4 | ||
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 200 | |||
Restructuring costs | 8.9 | |||
Payments for Restructuring | 1 | |||
Accrued restructuring | 7.9 | 0 | ||
2015 Industrial Process Restructuring Action [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Restucturing Costs Under Plan, Cash Costs | 13 | |||
Restructuring Reserve, Settled without Cash | 4 | |||
Restructuring and related costs, expected cost remaining | 8 | |||
2015 Industrial Process Restructuring Action [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Restucturing Costs Under Plan, Cash Costs | 14 | |||
Restructuring Reserve, Settled without Cash | 5 | |||
Restructuring and related costs, expected cost remaining | 10 | |||
Interconnect Solutions Turnaround Activities [Member] | Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | -0.2 | |||
Payments for Restructuring | 3.4 | |||
Accrued restructuring | $13.30 |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Income tax expense | ($18.10) | ($13) |
Effective income tax rate | 31.90% | 27.50% |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $86.60 |
EARNINGS_PER_SHARE_Basic_and_D
EARNINGS PER SHARE - Basic and Diluted Loss Per Share (Detail) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Weighted average common shares – basic | 90.6 | 91.4 |
Add: Dilutive impact of outstanding equity awards | 1 | 1.4 |
Diluted weighted average common shares outstanding | 91.6 | 92.8 |
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 | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of ROIC Awards Excluded from Diluted Shares Outstanding | 0.2 | 0.2 |
Anti-dilutive stock options | 0.3 | 0.2 |
Average exercise price | $42.90 | $43.52 |
Minimum [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Years of expiration | 2024 | 2024 |
Maximum [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Years of expiration | 2025 | 2024 |
RECEIVABLES_NET_Detail
RECEIVABLES, NET - (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $513.30 | $476.80 |
Notes receivable | 4 | 6.1 |
Other | 31.7 | 30.5 |
Receivables, gross | 549 | 513.4 |
Less: Allowance for doubtful accounts | -11.8 | -13.3 |
Receivables, net | $537.20 | $500.10 |
INVENTORIES_NET_Components_of_
INVENTORIES, NET - Components of Inventories, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $52 | $70.50 |
Work in process | 67.5 | 59.9 |
Raw materials | 151.6 | 148.5 |
Inventoried costs related to long-term contracts | 53.3 | 61.4 |
Total inventory before progress payments | 324.4 | 340.3 |
Less: Progress payments | -36.8 | -38 |
Inventories, net | $287.60 | $302.30 |
OTHER_CURRENT_AND_NONCURRENT_A2
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Asbestos-related current assets | $102.30 | $102.40 |
Current deferred income taxes | 53 | 56.2 |
Prepaid income taxes | 20.6 | 25.9 |
Short-term investments | 15.3 | 5.4 |
Other | 52.6 | 59.9 |
Other current assets | 243.8 | 249.8 |
Other employee benefit-related assets | 91.4 | 93 |
Capitalized software costs | 29.7 | 26.8 |
Other | 30.2 | 30 |
Other non-current assets | $151.30 | $149.80 |
PLANT_PROPERTY_AND_EQUIPMENT_N2
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $23.20 | $24 |
Machinery and equipment | 836.7 | 870.3 |
Buildings and improvements | 221.5 | 228.8 |
Furniture, fixtures and office equipment | 62.9 | 65.8 |
Construction work in progress | 36.1 | 44.5 |
Other | 6.8 | 7.8 |
Plant, property and equipment, gross | 1,187.20 | 1,241.20 |
Less: Accumulated depreciation | -767.9 | -797.3 |
Plant, property and equipment, net | $419.30 | $443.90 |
PLANT_PROPERTY_AND_EQUIPMENT_N3
PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $17.50 | $17 |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Goodwill - December 31, 2013 | $632.10 |
Foreign currency | -21.4 |
Goodwill - September 30, 2014 | 610.7 |
Industrial Process [Member] | |
Goodwill [Roll Forward] | |
Goodwill - December 31, 2013 | 331.9 |
Foreign currency | -14.8 |
Goodwill - September 30, 2014 | 317.1 |
Motion Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - December 31, 2013 | 43.9 |
Foreign currency | -4.6 |
Goodwill - September 30, 2014 | 39.3 |
Interconnect Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill - December 31, 2013 | 71.2 |
Foreign currency | -2 |
Goodwill - September 30, 2014 | 69.2 |
Control Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - December 31, 2013 | 185.1 |
Foreign currency | 0 |
Goodwill - September 30, 2014 | $185.10 |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense related to finite-lived intangible assets | $2.20 | $3 |
GOODWILL_AND_OTHER_INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Other Intangible Assets (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $121.70 | $126.40 |
Indefinite-lived intangible assets, Gross/Net Carrying Amount | 25.2 | 26.3 |
Other Intangible Assets, Gross Carrying Amount | 146.9 | 152.7 |
Accumulated Amortization | -61.5 | -61.3 |
Finite-live intangible asset, net of accumulated amortization | 60.2 | 65.1 |
Other intangible assets, net | 85.4 | 91.4 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer Relationships, Gross Carrying Amount | 81 | 83.1 |
Accumulated Amortization | -39.1 | -38.3 |
Finite-live intangible asset, net of accumulated amortization | 41.9 | 44.8 |
Proprietary technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Proprietary Technology, Gross Carrying Amount | 26.7 | 28.1 |
Accumulated Amortization | -10.1 | -9.9 |
Finite-live intangible asset, net of accumulated amortization | 16.6 | 18.2 |
Patents and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Other, Gross Carrying Amount | 14 | 15.2 |
Accumulated Amortization | -12.3 | -13.1 |
Finite-live intangible asset, net of accumulated amortization | $1.70 | $2.10 |
ACCRUED_AND_OTHER_CURRENT_LIAB2
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Payables and Accruals [Abstract] | ||||
Compensation and other employee-related benefits | $143 | $176.50 | ||
Asbestos-related liabilities | 105.7 | 106.6 | ||
Customer-related liabilities | 45.2 | 41.3 | ||
Accrued income taxes and other tax-related liabilities | 31.4 | 28 | ||
Environmental liabilities and other legal matters | 29.8 | 31.6 | ||
Accrued restructuring | 24.2 | 21.9 | 24.1 | 14.7 |
Accrued warranty costs | 23.4 | 29.4 | ||
Other accrued liabilities | 30.6 | 30.5 | ||
Accrued liabilities | 433.3 | 465.8 | ||
Deferred income taxes and other tax-related accruals | 113.5 | 112.2 | ||
Environmental liabilities | 75.8 | 80.2 | ||
Compensation and other employee-related benefits | 34.9 | 38.6 | ||
Other | 36.6 | 38.5 | ||
Other non-current liabilities | $260.80 | $269.50 |
Recovered_Sheet3
COMMERCIAL PAPER Commercial Paper (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | Rate | |
Debt Disclosure [Abstract] | ||
Commercial paper | $113.50 | $0 |
Commercial Paper, Weighted Average Interest Rate | 0.67% |
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 | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $1.50 | $1.70 |
Interest cost | 4.8 | 5.9 |
Expected return on plan assets | -5.3 | -5.4 |
Amortization of prior service cost (benefit) | -2.5 | -1.3 |
Amortization of net actuarial loss | 3.2 | 2.3 |
Total net periodic benefit cost | 1.7 | 3.2 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1.3 | 1.2 |
Interest cost | 3.6 | 3.9 |
Expected return on plan assets | -5.1 | -5.2 |
Amortization of prior service cost (benefit) | 0.2 | 0.2 |
Amortization of net actuarial loss | 2.1 | 1.6 |
Total net periodic benefit cost | 2.1 | 1.7 |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.2 | 0.5 |
Interest cost | 1.2 | 2 |
Expected return on plan assets | -0.2 | -0.2 |
Amortization of prior service cost (benefit) | -2.7 | -1.5 |
Amortization of net actuarial loss | 1.1 | 0.7 |
Total net periodic benefit cost | ($0.40) | $1.50 |
POSTRETIREMENT_BENEFIT_PLANS_P
POSTRETIREMENT BENEFIT PLANS Postretirement Textuals (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan, Contributions by Employer | $2.60 | $2.10 |
Reclassification of Postretirement Costs from AOCI, Net of Tax | 0.5 | 0.6 |
Minimum [Member] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 10 | |
Maximum [Member] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $15 |
LONGTERM_INCENTIVE_EMPLOYEE_CO2
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense, equity-based awards | $3.10 | $3.30 |
Share-based compensation expense, liability-based awards | 0.2 | 0.1 |
Total share-based compensation expense in operating income (loss) | $3.30 | $3.40 |
LONGTERM_INCENTIVE_EMPLOYEE_CO3
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 10 years | |
Stock options exercised | 0.1 | 0.5 |
Proceeds from the exercise of stock options | $2 | $9 |
Restricted stock vested during period | 0.2 | |
Equity Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost not yet recognized | 32.9 | |
Unrecognized compensation cost weighted-average period | 2 years 4 months 8 days | |
Liability Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost not yet recognized | $2.30 | |
Unrecognized compensation cost weighted-average period | 1 year 10 months 8 days |
LONGTERM_INCENTIVE_EMPLOYEE_CO4
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Feb. 25, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Date Fair Value | $11.23 | |
NQOs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards Granted | 0.2 | |
Grant Date Fair Value | $11.23 | |
Restricted Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards Granted | 0.2 | |
Grant Date Fair Value | $41.52 | |
TSR [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards Granted | 0.1 | |
Grant Date Fair Value | $45.67 | |
ROIC [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Awards Granted | 0.1 | |
Grant Date Fair Value | $40.12 |
LONGTERM_INCENTIVE_EMPLOYEE_CO5
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Weighted Average Assumptions (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Feb. 25, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Dividend yield | 1.10% | |
Expected volatility | 29.40% | |
Expected life (in years) | 5 years 10 months 1 day | |
Risk-free rates | 1.70% | |
Grant Date Fair Value | $11.23 |
CAPITAL_STOCK_Additional_Infor
CAPITAL STOCK - Additional Information (Detail) (USD $) | 3 Months Ended | 101 Months Ended | |
Share data in Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program | $1,000,000,000 | $1,000,000,000 | |
Repurchase of shares of common stock | 2 | ||
Aggregate cost of repurchase | -80,000,000 | ||
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 | 3,600,000 | 4,800,000 | |
2006 Share Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of shares of common stock | 18.4 | ||
Aggregate cost of repurchase | ($759,300,000) |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES Rollforward of Asbestos Claims (Detail) (Asbestos Issue [Member]) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
Claim | Claim | |||
Asbestos Claims [Rollforward] | ||||
Pending claims – Beginning | 62,000 | 79,000 | ||
New claims | 1,000 | 1,000 | ||
Settlements | 0 | -2,000 | ||
Dismissals | 3,000 | [1] | 9,000 | [1] |
Pending claims – Ending | 60,000 | 69,000 | ||
Inactive [Member] | ||||
Asbestos Claims [Rollforward] | ||||
Pending claims – Ending | 13,000 | [1] | 18,000 | [1] |
Inactive dismissed claims | 0 | 0 | ||
Active [Member] | ||||
Asbestos Claims [Rollforward] | ||||
Pending claims – Ending | 47,000 | 51,000 | ||
[1] | (a)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. There were no inactive claims dismissed or settled during the first quarter of 2015 or 2014. |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Asbestos Related Expenses (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Asbestos Related Contingencies [Line Items] | ||
Asbestos-related (benefit) costs, net | $15.40 | $15.80 |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES Roll Forward of Asbestos Liability and Related Assets (Detail) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Net Asbestos Liability Rollforward [Line Items] | |||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | $746.80 | ||
Asbestos-related costs, net | 15.4 | 15.8 | |
Increase Decrease Net Cash Activity | 3.9 | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | 758.3 | ||
Asbestos-related liabilities | 1,120.70 | 1,116.60 | |
Liability [Member] | |||
Net Asbestos Liability Rollforward [Line Items] | |||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | 1,223.20 | ||
Asbestos Provision For Liability And Related Assets Net | -18.1 | ||
Increase Decrease Net Cash Activity | 14.9 | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | 1,226.40 | ||
Loss Contingency, Accrual, Current | -105.7 | ||
Asbestos-related liabilities | 1,120.70 | ||
Asset [Member] | |||
Net Asbestos Liability Rollforward [Line Items] | |||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | 476.4 | ||
Asbestos Provision For Liability And Related Assets Net | 2.7 | ||
Increase Decrease Net Cash Activity | -11 | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | 468.1 | ||
Loss Contingency, Accrual, Current | 102.3 | ||
Asbestos-related liabilities | $365.80 |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES Asbestos Matters Textuals (Details) (USD $) | 3 Months Ended | |||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
Claim | Claim | |||||
Asbestos Related Contingencies [Line Items] | ||||||
Asbestos Liability Measurement Periods for Claims Pending and Estimated to be Filed | 10 years | |||||
Asbestos Liability And Related Assets Net Current And Noncurrent | $758.30 | $746.80 | ||||
Asbestos Issue [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Pending Asbestos Claims | 60,000 | 62,000 | 69,000 | 79,000 | ||
Asbestos Issue [Member] | Active [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Pending Asbestos Claims | 47,000 | 51,000 | ||||
Asbestos Issue [Member] | Inactive [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Pending Asbestos Claims | 13,000 | [1] | 18,000 | [1] | ||
Inactive dismissed claims | 0 | 0 | ||||
Liability [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Asbestos Liability And Related Assets Net Current And Noncurrent | 1,226.40 | 1,223.20 | ||||
Asset [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Asbestos Liability And Related Assets Net Current And Noncurrent | $468.10 | $476.40 | ||||
[1] | (a)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. There were no inactive claims dismissed or settled during the first quarter of 2015 or 2014. |
COMMITMENTS_AND_CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES Rollforward of Environmental Liability and Related Assets (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Loss Contingency Accrual [Roll Forward] | |
Environmental liability - Beginning balance | ($82.20) |
Net Cash Activity | -4.2 |
Foreign exchange translation | -0.3 |
Environmental liability - Ending balance | -77.9 |
Liability [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Environmental liability - Beginning balance | -89.9 |
Net Cash Activity | -4.4 |
Foreign exchange translation | -0.3 |
Environmental liability - Ending balance | -85.4 |
Assets [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Environmental liability - Beginning balance | 7.7 |
Net Cash Activity | 0.2 |
Foreign exchange translation | 0 |
Environmental liability - Ending balance | 7.5 |
Continuing Operations [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | 0.2 |
Continuing Operations [Member] | Liability [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | 0.2 |
Continuing Operations [Member] | Assets [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | $0 |
COMMITMENTS_AND_CONTINGENCIES_6
COMMITMENTS AND CONTINGENCIES Range of Environmental Liability and Number of Active Sites (Details) (Environmental Related Matters [Member], USD $) | Mar. 31, 2015 |
In Millions, unless otherwise specified | site |
Environmental Related Matters [Member] | |
Site Contingency [Line Items] | |
Number Of Active Environmental Investigation And Remediation Sites | 52 |
Loss Contingency, Range of Possible Loss, Maximum | $152 |
SUBSEQUENT_EVENTS_Subsequent_E1
SUBSEQUENT EVENTS Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Apr. 01, 2015 |
Employees | |||||
Subsequent Event [Line Items] | |||||
Revenues | $588.70 | $674.50 | |||
Acquisition of Hartzell Aerospace [Member] | |||||
Subsequent Event [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 53.1 | ||||
Revenues | $34 | ||||
Entity Number of Employees | 240 |