Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2015 | Oct. 29, 2015 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ITT | |
Entity Registrant Name | ITT Corporation | |
Entity Central Index Key | 216,228 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 89.5 |
CONSOLIDATED CONDENSED INCOME S
CONSOLIDATED CONDENSED INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 601.9 | $ 657.1 | $ 1,818.8 | $ 1,994.6 |
Costs of revenue | 407 | 437.2 | 1,211 | 1,345.1 |
Gross profit | 194.9 | 219.9 | 607.8 | 649.5 |
General and administrative expenses | 60.2 | 69.1 | 186.8 | 216.3 |
Sales and marketing expenses | 43.1 | 53.5 | 139.2 | 165.1 |
Research and development expenses | 18 | 20.1 | 55.2 | 56.4 |
Asbestos-related benefit, net | (30.3) | (42.5) | (99.7) | (10.8) |
Operating income | 103.9 | 119.7 | 326.3 | 222.5 |
Interest and non-operating (income) expenses, net | (4) | 0.7 | (2.5) | 2.3 |
Income from continuing operations before income tax expense | 107.9 | 119 | 328.8 | 220.2 |
Income tax expense | 11.4 | 38 | 53 | 63.4 |
Income from continuing operations | 96.5 | 81 | 275.8 | 156.8 |
Income (loss) from discontinued operations, net of tax | 34.2 | (0.3) | 39.3 | (4.2) |
Net income | 130.7 | 80.7 | 315.1 | 152.6 |
Less: Income attributable to noncontrolling interests | 0 | 0.4 | 0 | 1.8 |
Net income attributable to ITT Corporation | 130.7 | 80.3 | 315.1 | 150.8 |
Amounts attributable to ITT Corporation: | ||||
Income from continuing operations, net of tax | 96.5 | 80.6 | 275.8 | 155 |
Income (loss) from discontinued operations, net of tax | 34.2 | (0.3) | 39.3 | (4.2) |
Net income attributable to ITT Corporation | $ 130.7 | $ 80.3 | $ 315.1 | $ 150.8 |
Basic: | ||||
Continuing operations | $ 1.08 | $ 0.88 | $ 3.07 | $ 1.69 |
Discontinued operations | 0.38 | 0 | 0.44 | (0.04) |
Net income | 1.46 | 0.88 | 3.51 | 1.65 |
Diluted: | ||||
Continuing operations | 1.07 | 0.87 | 3.04 | 1.67 |
Discontinued operations | 0.38 | (0.01) | 0.43 | (0.05) |
Net income | $ 1.45 | $ 0.86 | $ 3.47 | $ 1.62 |
Weighted average common shares – basic | 89.4 | 91.6 | 89.9 | 91.5 |
Weighted average common shares – diluted | 90.3 | 92.9 | 90.8 | 92.9 |
Cash dividends declared per common share | $ 0.1183 | $ 0.11 | $ 0.3549 | $ 0.33 |
CONSOLIDATED CONDENSED INCOME 3
CONSOLIDATED CONDENSED INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Tax benefit on income from discontinued operations | $ 19.7 | $ 1.8 | $ 23.7 | $ 4.8 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 130.7 | $ 80.7 | $ 315.1 | $ 152.6 |
Other comprehensive income (loss): | ||||
Net foreign currency translation adjustment | (24.4) | (53.3) | (72.2) | (54.2) |
Net change in postretirement benefit plans, net of tax impacts of $0.1, $10.8, $0.5 and $11.4, respectively | 0.8 | 19 | 1.9 | 20.3 |
Other comprehensive loss | (23.6) | (34.3) | (70.3) | (33.9) |
Comprehensive income | 107.1 | 46.4 | 244.8 | 118.7 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0.4 | 0 | 1.8 |
Comprehensive income attributable to ITT Corporation | 107.1 | 46 | 244.8 | 116.9 |
Reclassification adjustments (see Note 14): | ||||
Amortization of prior service benefit, net of tax expense of $(1.2), $(0.6), $(3.0) and $(1.5), respectively | (1.4) | (0.8) | (4.6) | (2.5) |
Amortization of net actuarial loss, net of tax benefits of $1.3, $0.8, $3.5 and $2.4, respectively | 2.2 | 1.6 | 6.5 | 4.6 |
Net change in postretirement benefit plans, net of tax impacts of $0.1, $10.8, $0.5 and $11.4, respectively | 0.8 | 19 | 1.9 | 20.3 |
Unrealized change in net actuarial loss, net of tax expense of $0.0, $10.6, $0.0 and $10.6, respectively | $ 0 | $ 18.2 | $ 0 | $ 18.2 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $ 0.1 | $ 0.5 | $ 10.8 | $ 11.4 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax | (1.2) | (3) | (0.6) | (1.5) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax | 1.3 | 3.5 | 0.8 | 2.4 |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax | $ 0 | $ 0 | $ 10.6 | $ 10.6 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | |
Current assets: | |||
Cash and cash equivalents | $ 504.9 | $ 584 | |
Receivables, net | 567.8 | 500.1 | |
Inventories, net | 299.7 | 302.3 | |
Total current assets | 198.7 | 249.8 | |
Total current assets | 1,571.1 | 1,636.2 | |
Plant, property and equipment, net | 414.4 | 443.9 | |
Goodwill | 622.7 | 632.1 | |
Other intangible assets, net | 106.6 | 91.4 | |
Asbestos-related assets | 342.4 | 374 | |
Deferred income taxes | 272.5 | 304.1 | |
Other non-current assets | 148.6 | 149.8 | |
Total non-current assets | 1,907.2 | 1,995.3 | |
Total assets | 3,478.3 | 3,631.5 | [1] |
Current liabilities: | |||
Commercial paper | 10.5 | 0 | |
Accounts payable | 291.9 | 309.6 | |
Accrued liabilities | 414.8 | 465.8 | |
Total current liabilities | 717.2 | 775.4 | |
Asbestos-related liabilities | 961.2 | 1,116.6 | |
Postretirement benefits | 238.8 | 249.7 | |
Other non-current liabilities | 194.2 | 269.5 | |
Total non-current liabilities | 1,394.2 | 1,635.8 | |
Total liabilities | 2,111.4 | 2,411.2 | |
Shareholders’ equity: | |||
Outstanding – 89.5 shares and 91.0 shares, respectively | 89.5 | 91 | |
Retained earnings | 1,665.3 | 1,445.1 | |
Total accumulated other comprehensive loss | (391.5) | (321.2) | |
Total ITT Corporation shareholders' equity | 1,363.3 | 1,214.9 | |
Noncontrolling interests | 3.6 | 5.4 | |
Total shareholders’ equity | 1,366.9 | 1,220.3 | |
Total liabilities and shareholders’ equity | $ 3,478.3 | $ 3,631.5 | |
[1] | Amounts reflect balances as of December 31, 2014. |
CONSOLIDATED CONDENSED BALANCE7
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
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 | 89.5 | 91 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities | ||
Net income | $ 315.1 | $ 152.6 |
Less: Income (loss) from discontinued operations | 39.3 | (4.2) |
Less: Income attributable to noncontrolling interests | 0 | 1.8 |
Income from continuing operations attributable to ITT Corporation | 275.8 | 155 |
Adjustments to income from continuing operations: | ||
Depreciation and amortization | 63.1 | 64.2 |
Stock-based compensation | 11.1 | 10.8 |
Asbestos-related benefit, net | (99.7) | (10.8) |
Asbestos-related payments, net | (15.2) | (8.9) |
Changes in assets and liabilities: | ||
Change in receivables | (77.2) | (93.5) |
Change in inventories | (6.3) | (6.3) |
Change in accounts payable | (0.4) | 1.2 |
Change in accrued expenses | (26.1) | 4.1 |
Change in Accrued and Deferred Income Taxes | 21.9 | 5 |
Other, net | 0.1 | 11.1 |
Net Cash – Operating activities | 147.1 | 131.9 |
Investing Activities | ||
Capital expenditures | (64.2) | (74.4) |
Acquisitions, net of cash acquired | (53.5) | (2.8) |
Purchases of investments | (73) | (165.1) |
Maturities of investments | 68.2 | 207 |
Proceeds from sale of businesses and other assets | 8.6 | 3.4 |
Proceeds from insurance recovery | 2.5 | 0 |
Other, net | 0 | (0.6) |
Net Cash – Investing activities | (111.4) | (32.5) |
Financing Activities | ||
Short-term debt, net | 10.5 | (38) |
Long-term debt, repaid | (2.1) | (1.2) |
Repurchase of common stock | (83.9) | (25.5) |
Proceeds from issuance of common stock | 5.5 | 14.3 |
Dividends paid | (21.6) | (20.4) |
Excess tax benefit from equity compensation activity | 3.2 | 8.4 |
Other, net | (1.8) | (1.5) |
Net Cash – Financing activities | (90.2) | (63.9) |
Exchange rate effects on cash and cash equivalents | (23.9) | (15.1) |
Net Cash – Operating activities of discontinued operations | (0.7) | (5.1) |
Net change in cash and cash equivalents | (79.1) | 15.3 |
Cash and cash equivalents – beginning of year | 584 | 507.3 |
Cash and cash equivalents – end of period | 504.9 | 522.6 |
Cash paid during the year for: | ||
Interest | 1 | 1.1 |
Income taxes, net of refunds received | $ 24.7 | $ 47.8 |
CONSOLIDATED CONDENSED STATEME9
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREDHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Total shareholders' equity, beginning balance at Dec. 31, 2013 | $ 1,206.9 | $ 91 | $ 1,320.3 | $ 5.9 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2013 | $ (129.2) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2013 | (80.8) | ||||
Unrealized loss on investment securities, beginning balance at Dec. 31, 2013 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 1.1 | ||||
Net income attributable to ITT Corporation | 150.8 | 150.8 | |||
Dividends declared | (30.4) | ||||
Activity from stock incentive plans | 32.4 | ||||
Share repurchases | (0.5) | (25) | |||
Purchase of noncontrolling interest | 1.4 | (2.9) | |||
Net change in postretirement benefit plans | 20.3 | 20.3 | |||
Net cumulative translation adjustment | (54.2) | ||||
Income attributable to noncontrolling interests | (1.8) | 1.8 | |||
Dividend to noncontrolling interest shareholders | 0 | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2014 | (108.9) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2014 | (135) | ||||
Unrealized loss on investment securities, ending balance at Sep. 30, 2014 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | 0.6 | ||||
Net change in retained earnings | 129.2 | ||||
Net change in accumulated other comprehensive loss | (33.9) | ||||
Net change in noncontrolling interests | (1.1) | ||||
Total shareholders' equity, ending balance at Sep. 30, 2014 | 1,301.7 | 91.6 | 1,449.5 | (244.2) | 4.8 |
Total shareholders' equity, beginning balance at Jun. 30, 2014 | 1,267.1 | 91.6 | 1,381 | 4.4 | |
Postretirement benefit plans, beginning balance at Jun. 30, 2014 | (127.9) | ||||
Cumulative translation adjustment, beginning balance at Jun. 30, 2014 | (81.7) | ||||
Unrealized loss on investment securities, beginning balance at Jun. 30, 2014 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.2 | ||||
Net income attributable to ITT Corporation | 80.3 | 80.3 | |||
Dividends declared | (10.2) | ||||
Activity from stock incentive plans | 8.7 | ||||
Share repurchases | (0.2) | (10.3) | |||
Purchase of noncontrolling interest | 0 | 0 | |||
Net change in postretirement benefit plans | 19 | 19 | |||
Net cumulative translation adjustment | (53.3) | ||||
Income attributable to noncontrolling interests | (0.4) | 0.4 | |||
Dividend to noncontrolling interest shareholders | 0 | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2014 | (108.9) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2014 | (135) | ||||
Unrealized loss on investment securities, ending balance at Sep. 30, 2014 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | 0 | ||||
Net change in retained earnings | 68.5 | ||||
Net change in accumulated other comprehensive loss | (34.3) | ||||
Net change in noncontrolling interests | 0.4 | ||||
Total shareholders' equity, ending balance at Sep. 30, 2014 | 1,301.7 | 91.6 | 1,449.5 | (244.2) | 4.8 |
Total shareholders' equity, beginning balance at Dec. 31, 2014 | 1,220.3 | 91 | 1,445.1 | 5.4 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2014 | (144.2) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2014 | (176.7) | ||||
Unrealized loss on investment securities, beginning balance at Dec. 31, 2014 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.6 | ||||
Net income attributable to ITT Corporation | 315.1 | 315.1 | |||
Dividends declared | (32.1) | ||||
Activity from stock incentive plans | 19 | ||||
Share repurchases | (2.1) | (81.8) | |||
Purchase of noncontrolling interest | 0 | 0 | |||
Net change in postretirement benefit plans | 1.9 | 1.9 | |||
Net cumulative translation adjustment | (72.2) | ||||
Income attributable to noncontrolling interests | 0 | 0 | |||
Dividend to noncontrolling interest shareholders | (1.8) | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2015 | (142.3) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2015 | (248.9) | ||||
Unrealized loss on investment securities, ending balance at Sep. 30, 2015 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (1.5) | ||||
Net change in retained earnings | 220.2 | ||||
Net change in accumulated other comprehensive loss | (70.3) | ||||
Net change in noncontrolling interests | (1.8) | ||||
Total shareholders' equity, ending balance at Sep. 30, 2015 | 1,366.9 | 89.5 | 1,665.3 | (391.5) | 3.6 |
Total shareholders' equity, beginning balance at Jun. 30, 2015 | 1,267.8 | 89.4 | 1,540.9 | 5.4 | |
Postretirement benefit plans, beginning balance at Jun. 30, 2015 | (143.1) | ||||
Cumulative translation adjustment, beginning balance at Jun. 30, 2015 | (224.5) | ||||
Unrealized loss on investment securities, beginning balance at Jun. 30, 2015 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.1 | ||||
Net income attributable to ITT Corporation | 130.7 | 130.7 | |||
Dividends declared | (10.6) | ||||
Activity from stock incentive plans | 4.5 | ||||
Share repurchases | 0 | (0.2) | |||
Purchase of noncontrolling interest | 0 | 0 | |||
Net change in postretirement benefit plans | 0.8 | 0.8 | |||
Net cumulative translation adjustment | (24.4) | ||||
Income attributable to noncontrolling interests | 0 | 0 | |||
Dividend to noncontrolling interest shareholders | (1.8) | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2015 | (142.3) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2015 | (248.9) | ||||
Unrealized loss on investment securities, ending balance at Sep. 30, 2015 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | 0.1 | ||||
Net change in retained earnings | 124.4 | ||||
Net change in accumulated other comprehensive loss | (23.6) | ||||
Net change in noncontrolling interests | (1.8) | ||||
Total shareholders' equity, ending balance at Sep. 30, 2015 | $ 1,366.9 | $ 89.5 | $ 1,665.3 | $ (391.5) | $ 3.6 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 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 noise and energy absorption 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.” On May 29, 2015, Harris Corporation acquired Exelis. 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 that is generally 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 PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 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 July 2015, the Financial Accounting Standards Board (FASB) amended the existing accounting standards for inventory, requiring that an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to all inventory that is measured using a method other than last-in, first-out (LIFO) or the retail inventory method. The new guidance will be effective for the Company beginning in its first quarter of 2017 and will be applied prospectively. The adoption of this amendment is not expected to have a material impact to ITT's financial statements. In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. 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 | 9 Months Ended |
Sep. 30, 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, fuel management, noise and energy absorption, and environmental control system 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 assets and certain property, plant and equipment. Revenue Operating Income (Loss) Operating Margin Three Months Ended September 30 2015 2014 2015 2014 2015 2014 Industrial Process $ 270.6 $ 292.7 $ 34.0 $ 31.0 12.6 % 10.6 % Motion Technologies 179.9 197.0 33.0 36.5 18.3 % 18.5 % Interconnect Solutions 82.8 98.4 3.6 11.2 4.3 % 11.4 % Control Technologies 69.8 70.7 14.0 15.7 20.1 % 22.2 % Total segment results 603.1 658.8 84.6 94.4 14.1 % 14.4 % Asbestos-related benefit, net — — 30.3 42.5 — — Eliminations / Other corporate costs (1.2 ) (1.7 ) (11.0 ) (17.2 ) — — Total Eliminations / Corporate and Other costs (1.2 ) (1.7 ) 19.3 25.3 — — Total $ 601.9 $ 657.1 $ 103.9 $ 119.7 17.3 % 18.2 % Revenue Operating Income (Loss) Operating Margin Nine Months Ended September 30 2015 2014 2015 2014 2015 2014 Industrial Process $ 813.7 $ 867.6 $ 95.9 $ 80.7 11.8 % 9.3 % Motion Technologies 555.5 612.8 111.0 111.4 20.0 % 18.2 % Interconnect Solutions 243.0 302.1 7.6 20.5 3.1 % 6.8 % Control Technologies 210.1 217.3 40.5 47.4 19.3 % 21.8 % Total segment results 1,822.3 1,999.8 255.0 260.0 14.0 % 13.0 % Asbestos-related benefit, net — — 99.7 10.8 — — Eliminations / Other corporate costs (3.5 ) (5.2 ) (28.4 ) (48.3 ) — — Total Eliminations / Corporate and Other costs (3.5 ) (5.2 ) 71.3 (37.5 ) — — Total $ 1,818.8 $ 1,994.6 $ 326.3 $ 222.5 17.9 % 11.2 % Total Assets Capital Expenditures Depreciation & Amortization Nine Months Ended September 30 2015 2014 (a) 2015 2014 2015 2014 Industrial Process $ 1,114.5 $ 1,152.3 $ 13.0 $ 26.5 $ 20.9 $ 21.3 Motion Technologies 449.4 450.1 28.7 32.5 20.5 21.9 Interconnect Solutions 368.6 365.4 15.6 8.5 7.9 8.9 Control Technologies 380.8 334.1 4.3 1.3 9.1 7.5 Corporate and Other 1,165.0 1,329.6 2.6 5.6 4.7 4.6 Total $ 3,478.3 $ 3,631.5 $ 64.2 $ 74.4 $ 63.1 $ 64.2 (a) Amounts reflect balances as of December 31, 2014 . |
RESTRUCTURING ACTIONS RESTRUCTU
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2015 and 2014 . Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Severance costs $ 1.1 $ 2.2 $ 16.2 $ 18.8 Asset write-offs 0.7 — 0.7 1.3 Other restructuring costs — 0.9 0.9 2.1 Total restructuring costs $ 1.8 $ 3.1 $ 17.8 $ 22.2 By segment: Industrial Process $ 0.6 $ 1.6 $ 10.6 $ 4.5 Motion Technologies — 0.1 — 0.3 Interconnect Solutions 0.9 0.4 6.2 16.4 Control Technologies 0.3 — 0.8 — Corporate and Other — 1.0 0.2 1.0 The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the nine months ended September 30, 2015 and 2014 . For the Nine Months Ended September 30 2015 2014 Restructuring accruals - beginning balance $ 21.9 $ 14.7 Restructuring costs 17.8 22.2 Cash payments (19.5 ) (13.0 ) Asset write-offs (0.7 ) (1.3 ) Foreign exchange translation and other (0.3 ) (0.5 ) Restructuring accrual - ending balance $ 19.2 $ 22.1 By accrual type: Severance accrual $ 18.2 $ 20.0 Facility carrying and other costs accrual 1.0 2.1 2015 Interconnect Solutions Restructuring Actions In May 2015, we announced a restructuring action for the Company's Interconnect Solutions (ICS) segment to reduce overall costs and better align the segment with current market conditions. The Company expects to incur cash restructuring costs, principally involuntary severance, of approximately $12 for 110 employees, which represents 6% of the ICS global workforce. The Company expects to substantially complete these actions in the next twelve months. The following table provides a rollforward of the restructuring accruals associated with the 2015 ICS restructuring action. For the Nine Months Ended September 30 2015 Restructuring accruals - beginning balance $ — Restructuring costs 6.4 Cash payments (4.8 ) Restructuring accruals - ending balance $ 1.6 2015 Industrial Process Restructuring Actions In March 2015, we announced a series of restructuring actions in the Company's Industrial Process segment related to a strategic reorganization of the business and to achieve efficiencies and reduce the overall cost structure. The Company expects to incur cash restructuring costs, principally involuntary severance costs of approximately $15 to $16 and other non-cash restructuring costs of approximately $2 in aggregate related to this action. The costs incurred during the nine months ended September 30, 2015 primarily relate to employee severance for approximately 200 planned headcount reductions. We expect to incur the remaining restructuring costs of approximately $6 to $7 over the next 3 to 6 months related to this action. The following table provides a rollforward of the restructuring accruals associated with the 2015 Industrial Process restructuring actions. For the Nine Months Ended September 30 2015 Restructuring accruals - beginning balance $ — Restructuring costs 10.6 Cash payments (3.1 ) Asset write-offs (0.7 ) Restructuring accruals - ending balance $ 6.8 2013 / 2014 Interconnect Solutions Restructuring Actions In 2013, we initiated a comprehensive restructuring plan to improve the overall cost structure of the Company's ICS segment, including the transition of certain production lines from one location to another existing lower cost manufacturing site. During 2015, we reversed $0.2 of a previously estimated restructuring liability and made cash payments of $7.3 , resulting in a remaining liability of $9.4 as of September 30, 2015. The remaining liability, which is primarily related to employee severance, is expected to be fully satisfied over the next 18 months. We do not expect to incur any additional charges related to this restructuring action. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three months ended September 30, 2015 and 2014 , the Company recognized income tax expense of $11.4 and $38.0 , respectively, representing an effective tax rate of 10.6% and 31.9% , respectively. For the nine months ended September 30, 2015 and 2014 , the Company recognized income tax expense of $53.0 and $63.4 , respectively, representing an effective tax rate of 16.1% and 28.8% , respectively. The lower effective tax rate in 2015 is primarily resulting from the settlement of a U.S. income tax audit and the release of the valuation allowance on certain net deferred tax assets in China due to positive income in recent years. The Company continues to benefit from earnings eligible for a tax holiday in South Korea, as well as a larger mix of earnings in non-U.S. jurisdictions with favorable tax rates. During the third quarter, the Company effectively settled the U.S. income tax audit for tax years 2009-2011. The Company recorded a tax benefit of $18.0 in continuing operations, which includes a net tax benefit of $8.0 from favorable audit adjustments and $10.0 from the recognition of previously unrecognized tax positions. In addition, this U.S. income tax audit resulted in tax benefit of $20.9 related to discontinued operations, which includes net tax expense of $17.4 from unfavorable audit adjustments and a tax benefit of $38.3 from the recognition of previously unrecognized tax positions. In accordance with the existing Tax Matters Agreement entered into between the Company, Exelis, and Xylem in connection with the 2011 spin-off (the Tax Matters Agreement), the Company is entitled to reimbursement for a portion of the tax liability and has recorded a receivable of $1.6 and $13.2 in continuing and discontinued operations, respectively. 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 Canada, Germany, Hong Kong, Italy, Mexico, South Korea, the U.S. and Venezuela. The estimated tax liability calculation 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 the current estimate of the unrecognized tax benefit. 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 $17.7 due to changes in audit status, expiration of statutes of limitations and other events. The settlement of any future examinations could result in changes in amounts attributable to the Company under its existing Tax Matters Agreement with Exelis and Xylem. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 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 for the three and nine months ended September 30, 2015 and 2014 . Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Basic weighted average common shares outstanding 89.4 91.6 89.9 91.5 Add: Dilutive impact of outstanding equity awards 0.9 1.3 0.9 1.4 Diluted weighted average common shares outstanding 90.3 92.9 90.8 92.9 The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2015 and 2014 because they were anti-dilutive. Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Anti-dilutive stock options 0.4 0.2 0.4 0.2 Average exercise price $ 42.42 $ 43.51 $ 42.53 $ 43.51 Year(s) of expiration 2024 - 2025 2024 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 both the three and nine months ended September 30, 2015 and 2014 respectively, as the necessary performance conditions have not been yet been satisfied. |
RECEIVABLES, NET
RECEIVABLES, NET | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
RECEIVABLES, NET | RECEIVABLES, NET September 30, December 31, Trade accounts receivable $ 535.6 $ 476.8 Notes receivable 3.2 6.1 Other 43.2 30.5 Receivables, gross 582.0 513.4 Less: Allowance for doubtful accounts (14.2 ) (13.3 ) Receivables, net $ 567.8 $ 500.1 |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET September 30, December 31, Finished goods $ 62.6 $ 70.5 Work in process 68.0 59.9 Raw materials 155.9 148.5 Inventoried costs related to long-term contracts 51.4 61.4 Total inventory before progress payments 337.9 340.3 Less: Progress payments (38.2 ) (38.0 ) Inventories, net $ 299.7 $ 302.3 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT AND NON-CURRENT ASSETS | OTHER CURRENT AND NON-CURRENT ASSETS September 30, December 31, Asbestos-related assets $ 74.5 $ 102.4 Current deferred income taxes 58.4 56.2 Short-term investments 10.3 5.4 Prepaid income taxes 10.6 25.9 Other 44.9 59.9 Other current assets $ 198.7 $ 249.8 Other employee benefit-related assets $ 92.0 $ 93.0 Capitalized software costs 29.2 26.8 Other 27.4 30.0 Other non-current assets $ 148.6 $ 149.8 |
PLANT, PROPERTY AND EQUIPMENT,
PLANT, PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
PLANT, PROPERTY AND EQUIPMENT, NET | PLANT, PROPERTY AND EQUIPMENT, NET September 30, December 31, Land and improvements $ 22.0 $ 24.0 Machinery and equipment 871.9 870.3 Buildings and improvements 222.5 228.8 Furniture, fixtures and office equipment 64.3 65.8 Construction work in progress 34.3 44.5 Other 6.2 7.8 Plant, property and equipment, gross 1,221.2 1,241.2 Less: Accumulated depreciation (806.8 ) (797.3 ) Plant, property and equipment, net $ 414.4 $ 443.9 Depreciation expense of $16.4 and $50.4 and $18.5 and $52.2 was recognized in the three and nine months ended September 30, 2015 and the three and nine months ended September 30, 2014 , respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2015 by segment. Industrial Process Motion Technologies Interconnect Solutions Control Technologies Total Goodwill - December 31, 2014 $ 331.9 $ 43.9 $ 71.2 $ 185.1 $ 632.1 Acquired — — — 13.3 13.3 Allocated to Divestiture — — — (2.7 ) (2.7 ) Foreign currency (14.7 ) (3.6 ) (1.7 ) — (20.0 ) Goodwill - September 30, 2015 $ 317.2 $ 40.3 $ 69.5 $ 195.7 $ 622.7 Goodwill acquired during 2015 relates to the Hartzell Aerospace acquisition. Refer to Note 18, Acquisitions, for additional information. Goodwill of $2.7 was written-off during the second quarter of 2015 in connection with the sale of an industrial product line within our Control Technologies segment that occurred in June 2015. The sale of this product line resulted in a net gain of $0.1 , which included the allocation of this goodwill. Other Intangible Assets, Net September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 96.3 $ (41.4 ) $ 54.9 $ 83.1 $ (38.3 ) $ 44.8 Proprietary technology 35.3 (11.0 ) 24.3 28.1 (9.9 ) 18.2 Patents and other 8.7 (6.2 ) 2.5 15.2 (13.1 ) 2.1 Finite-lived intangible total 140.3 (58.6 ) 81.7 126.4 (61.3 ) 65.1 Indefinite-lived intangibles 24.9 — 24.9 26.3 — 26.3 Other Intangible Assets $ 165.2 $ (58.6 ) $ 106.6 $ 152.7 $ (61.3 ) $ 91.4 The fair value of intangible assets acquired in connection with the purchase of Hartzell Aerospace, based on a preliminary valuation, included $17.1 of customer relationships, $9.6 of proprietary technology, and $1.9 of backlog. These intangible assets will be amortized straight-line over their estimated useful lives of 20 years, 20 years, and 12 months, respectively. See Note 18, Acquisitions, for additional information. Amortization expense related to finite-lived intangible assets was $3.0 and $8.7 and $2.5 and $8.8 for the three and nine months ended September 30, 2015 and the three and nine months ended September 30, 2014 , respectively. |
ACCRUED AND OTHER CURRENT LIABI
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES September 30, December 31, Compensation and other employee-related benefits $ 146.8 $ 176.5 Asbestos-related liabilities 87.6 106.6 Customer-related liabilities 41.7 41.3 Accrued income taxes and other tax-related liabilities 39.8 28.0 Environmental liabilities and other legal matters 27.0 31.6 Accrued restructuring 19.2 21.9 Accrued warranty costs 22.2 29.4 Other accrued liabilities 30.5 30.5 Accrued liabilities $ 414.8 $ 465.8 Deferred income taxes and other tax-related accruals $ 53.9 $ 112.2 Environmental liabilities 69.0 80.2 Compensation and other employee-related benefits 35.2 38.6 Other 36.1 38.5 Other non-current liabilities $ 194.2 $ 269.5 |
COMMERCIAL PAPER COMMERCIAL PAP
COMMERCIAL PAPER COMMERCIAL PAPER (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
COMMERCIAL PAPER [Abstract] | |
Commercial Paper [Text Block] | COMMERCIAL PAPER Commercial paper outstanding as of September 30, 2015 was $10.5 , with an associated weighted average interest rate of 0.68% 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 | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS The following tables provide the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three and nine months ended September 30, 2015 and 2014 . 2015 2014 Three Months Ended September 30 Pension Other Benefits Total Pension Other Benefits Total Service cost $ 1.4 $ 0.3 $ 1.7 $ 1.2 $ 0.5 $ 1.7 Interest cost 3.6 1.4 5.0 3.9 2.0 5.9 Expected return on plan assets (5.1 ) (0.2 ) (5.3 ) (5.1 ) (0.2 ) (5.3 ) Amortization of prior service cost (benefit) 0.2 (2.8 ) (2.6 ) 0.1 (1.5 ) (1.4 ) Amortization of net actuarial loss 2.2 1.3 3.5 1.6 0.8 2.4 Total net periodic benefit cost $ 2.3 $ — $ 2.3 $ 1.7 $ 1.6 $ 3.3 2015 2014 Nine Months Ended September 30 Pension Other Total Pension Other Total Service cost $ 4.0 $ 0.7 $ 4.7 $ 3.7 $ 1.4 $ 5.1 Interest cost 10.7 3.8 14.5 11.7 5.9 17.6 Expected return on plan assets (15.3 ) (0.6 ) (15.9 ) (15.5 ) (0.5 ) (16.0 ) Amortization of prior service cost (benefit) 0.7 (8.3 ) (7.6 ) 0.5 (4.5 ) (4.0 ) Amortization of net actuarial loss 6.5 3.5 10.0 4.7 2.3 7.0 Total net periodic benefit cost $ 6.6 $ (0.9 ) $ 5.7 $ 5.1 $ 4.6 $ 9.7 We made contributions to our global postretirement plans of $8.2 and $7.7 during the nine months ended September 30, 2015 and 2014 , respectively. We expect to make additional contributions of approximately $2 to $5 during the remainder of 2015 , principally related to our other postretirement employee benefit plans. Amortization from accumulated other comprehensive income into earnings related to prior service cost and net actuarial loss was $0.8 and $1.9 , and $0.8 and $2.1 , net of tax, during the three and nine months ended September 30, 2015 and 2014 , respectively. No other reclassifications from accumulated other comprehensive income into earnings were recognized during any of the presented periods. |
LONG-TERM INCENTIVE EMPLOYEE CO
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2015 and 2014 . Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Equity based awards $ 4.2 $ 4.0 $ 11.1 $ 10.8 Liability-based awards (0.1 ) 1.0 0.8 2.9 Total share-based compensation expense $ 4.1 $ 5.0 $ 11.9 $ 13.7 At September 30, 2015 , there was estimated unrecognized compensation cost of $25.8 related to unvested equity-based awards that is expected to be recognized ratably over a weighted-average period of 2.1 years, and $2.4 related to unvested liability-based awards that are expected to be recognized ratably over a weighted-average period of 2.0 years. Year-to-Date 2015 LTIP Activity The majority of our LTIP activity occurs during the first quarter of each year. The majority of LTIP grants occurred on February 25, 2015. During the nine months ended September 30, 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) 0.3 $ 40.93 Total shareholder return (TSR) awards 0.1 $ 45.67 Return on invested capital (ROIC) awards 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 nine months ended September 30, 2015 and 2014 , 0.3 and 0.8 NQOs were exercised resulting in proceeds of $5.5 and $14.3 , respectively. In addition, RSUs of 0.3 vested and were issued during both nine month periods ended September 30, 2015 and 2014, respectively. 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 1.1% Expected volatility 29.4% Expected life 5.8 years Risk-free rates 1.7% Grant date fair value $11.23 |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK On October 27, 2006, a three-year $1 billion share repurchase program was approved by the Board of Directors (2006 Share Repurchase Program). On December 16, 2008, the provisions of the 2006 Share Repurchase Program were modified by the Board of Directors to replace the original three-year term with an indefinite term. We repurchased 2.0 and 0.4 shares of common stock for $80.0 and $20.0 during the nine months ended September 30, 2015 and 2014, respectively, under this program. 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 $3.9 and $5.5 , during the nine months ended September 30, 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 | 9 Months Ended |
Sep. 30, 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. (Goulds Pumps), 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 September 30, 2015 , there were 38 thousand pending active claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: For the Nine Months Ended September 30 (in thousands) 2015 2014 Pending claims – Beginning 62 79 New claims 3 3 Settlements (1 ) (2 ) Dismissals (26 ) (12 ) Pending claims – Ending 38 68 Pending inactive claims (a) — 18 Pending active claims 38 50 (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. As of September 30, 2015, all inactive claims have been dismissed. 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 Costs / Benefit In the third quarter of each year, we conduct our annual asbestos remeasurement with the assistance of outside consultants to review and update the underlying assumptions used in our asbestos liability and related asset estimates. In each remeasurement, the underlying assumptions are updated based on our actual experience since our previous annual remeasurement and we reassess the appropriate reference period used in determining each assumption and our expectations regarding future conditions, including inflation. Based on the results of this study, in the third quarter of 2015, we decreased our estimated undiscounted asbestos liability, including legal fees, by $52.7 , reflecting a decrease in costs the company estimates will be incurred to resolve all pending claims, as well as unasserted claims estimated to be filed over the next 10 years. The decrease in our estimated liability is a result of several developments, including favorable experience in the ratio of dismissed claims versus settled claims and lower settlement values. These favorable factors were offset in part by an increasing number of cases expected to be adjudicated. Further, in the third quarter of 2015, the Company decreased its estimated asbestos-related assets by $7.9 , primarily due to the decrease in the estimated liability. Further, in the third quarter of 2015, ITT entered into a settlement agreement with an insurer to settle responsibility for certain insured claims, resulting in a benefit of $1.2 . During the second quarter of 2015, the Company changed its asbestos defense strategy and retained a single firm to defend the Company in all asbestos litigation. This long-term strategy streamlines the Company’s management of cases and significantly reduces defense costs. Our agreement with the defense firm is currently limited to a certain set of claims and the remaining claims are expected to be transitioned to the firm within the next four years. Based on the terms of the agreement, the Company adjusted its asbestos liability and related assets in the second quarter of 2015 and recognized a net benefit of $100.7 for the revised estimate of the cost to defend pending claims and claims expected to be filed over the next 10 years. In addition to the charges associated with our annual remeasurement, we record a net asbestos charge each quarter to maintain a rolling 10-year forecast period. The table below summarizes the total net asbestos charges for the three and nine months ended September 30, 2015 and 2014. Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Asbestos provision $ 15.7 $ 16.3 $ 47.0 $ 48.0 Defense cost adjustment — — (100.7 ) — Net asbestos remeasurement (44.8 ) (58.8 ) (44.8 ) (58.8 ) Settlement agreement (1.2 ) — (1.2 ) — Asbestos-related (benefit) costs, net $ (30.3 ) $ (42.5 ) $ (99.7 ) $ (10.8 ) 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 $631.9 and $746.8 as of September 30, 2015 and December 31, 2014 , respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the nine months ended September 30, 2015 . Liability Asset Net Balance as of December 31, 2014 $ 1,223.2 $ 476.4 $ 746.8 Asbestos provision 54.8 7.8 47.0 Defense cost adjustment (124.2 ) (23.5 ) (100.7 ) Asbestos remeasurement (52.7 ) (7.9 ) (44.8 ) Settlement agreement — 1.2 (1.2 ) Net cash activity (52.3 ) (37.1 ) (15.2 ) Balance as of September 30, 2015 $ 1,048.8 $ 416.9 $ 631.9 Current portion $ 87.6 $ 74.5 Noncurrent portion $ 961.2 $ 342.4 Environmental In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and site remediation. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by ITT, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations. The following table provides a rollforward of the estimated environmental liability and related assets for the nine months ended September 30, 2015 . Liability Asset Net Balance as of December 31, 2014 $ 89.9 $ 7.7 $ 82.2 Change in estimates for pre-existing accruals Continuing operations 1.4 0.3 1.1 Discontinued operations (2.8 ) (0.9 ) (1.9 ) Accruals added during the period for new matters — — — Net cash activity (9.1 ) (0.4 ) (8.7 ) Foreign currency (0.4 ) — (0.4 ) Balance as of September 30, 2015 $ 79.0 $ 6.7 $ 72.3 We are currently involved with 53 active environmental investigation and remediation sites. At September 30, 2015 , we have estimated the potential high-end liability range of environmental-related matters to be $136 . As actual costs incurred at identified sites in future periods may vary from our current estimates given the inherent uncertainties in evaluating environmental exposures, management believes it is possible that the outcome of these uncertainties may have a material adverse effect on our financial statements. Other Matters The Company has received a civil subpoena from the Department of Defense, Office of the Inspector General requesting documents pertaining to certain products manufactured by the Company’s Interconnect Solutions segment that are purchased or used by the U.S. government. The Company is cooperating with the request. The inquiry is in the early stages and the Company is unable to estimate the timing or outcome of the matter. |
ACQUISITIONS (Notes)
ACQUISITIONS (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS Hartzell Aerospace On March 31, 2015, we completed the acquisition of Hartzell Aerospace for a purchase price of $53.5 that was funded through additional commercial paper borrowings. Hartzell Aerospace, 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 Aerospace employs approximately 240 employees at its two facilities in California. The acquisition is being 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. The allocation of purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date. The aggregate estimated fair value of customer relationships, proprietary technology, and backlog was $17.1 , $9.6 and $1.9 , respectively. Other assets acquired and liabilities assumed, net, as part of the acquisition were $11.6 and primarily related to working capital balances. The excess of the purchase price over the estimated fair value of net assets acquired of $13.3 was recorded as goodwill (which is expected to be deductible for income tax purposes). All of the goodwill has been assigned to the Control Technologies segment. Our financial statements include the results of operations and cash flows from Hartzell Aerospace, prospectively from the acquisition date; however, these results were not material and accordingly, pro forma results of operations have not been presented. |
SUBSEQUENT EVENTS Subsequent Ev
SUBSEQUENT EVENTS Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS On October 5, 2015, we completed the acquisition of Wolverine Automotive Holdings Inc., the parent company of Wolverine Advanced Materials LLC (Wolverine). Wolverine is a manufacturer of customized technologies for automotive braking systems and specialized sealing solutions for harsh operating environments across a range of industries. The purchase price of $300 , net of cash acquired, was funded through a combination of cash and a $200 borrowing from our revolving credit facility. Wolverine has approximately 500 employees globally and reported 2014 revenues of $154 , including $17 of sales to ITT. The acquisition will be reported within the Motion Technologies segment. |
DESCRIPTION OF BUSINESS AND B29
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 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 noise and energy absorption 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.” On May 29, 2015, Harris Corporation acquired Exelis. Basis of Presentation |
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 that is generally 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 PRONOUNCEME30
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Recent Acconting Pronouncements [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Pronouncements Not Yet Adopted In July 2015, the Financial Accounting Standards Board (FASB) amended the existing accounting standards for inventory, requiring that an entity measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendment applies to all inventory that is measured using a method other than last-in, first-out (LIFO) or the retail inventory method. The new guidance will be effective for the Company beginning in its first quarter of 2017 and will be applied prospectively. The adoption of this amendment is not expected to have a material impact to ITT's financial statements. In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. 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) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Revenue Operating Income (Loss) Operating Margin Three Months Ended September 30 2015 2014 2015 2014 2015 2014 Industrial Process $ 270.6 $ 292.7 $ 34.0 $ 31.0 12.6 % 10.6 % Motion Technologies 179.9 197.0 33.0 36.5 18.3 % 18.5 % Interconnect Solutions 82.8 98.4 3.6 11.2 4.3 % 11.4 % Control Technologies 69.8 70.7 14.0 15.7 20.1 % 22.2 % Total segment results 603.1 658.8 84.6 94.4 14.1 % 14.4 % Asbestos-related benefit, net — — 30.3 42.5 — — Eliminations / Other corporate costs (1.2 ) (1.7 ) (11.0 ) (17.2 ) — — Total Eliminations / Corporate and Other costs (1.2 ) (1.7 ) 19.3 25.3 — — Total $ 601.9 $ 657.1 $ 103.9 $ 119.7 17.3 % 18.2 % Revenue Operating Income (Loss) Operating Margin Nine Months Ended September 30 2015 2014 2015 2014 2015 2014 Industrial Process $ 813.7 $ 867.6 $ 95.9 $ 80.7 11.8 % 9.3 % Motion Technologies 555.5 612.8 111.0 111.4 20.0 % 18.2 % Interconnect Solutions 243.0 302.1 7.6 20.5 3.1 % 6.8 % Control Technologies 210.1 217.3 40.5 47.4 19.3 % 21.8 % Total segment results 1,822.3 1,999.8 255.0 260.0 14.0 % 13.0 % Asbestos-related benefit, net — — 99.7 10.8 — — Eliminations / Other corporate costs (3.5 ) (5.2 ) (28.4 ) (48.3 ) — — Total Eliminations / Corporate and Other costs (3.5 ) (5.2 ) 71.3 (37.5 ) — — Total $ 1,818.8 $ 1,994.6 $ 326.3 $ 222.5 17.9 % 11.2 % Total Assets Capital Expenditures Depreciation & Amortization Nine Months Ended September 30 2015 2014 (a) 2015 2014 2015 2014 Industrial Process $ 1,114.5 $ 1,152.3 $ 13.0 $ 26.5 $ 20.9 $ 21.3 Motion Technologies 449.4 450.1 28.7 32.5 20.5 21.9 Interconnect Solutions 368.6 365.4 15.6 8.5 7.9 8.9 Control Technologies 380.8 334.1 4.3 1.3 9.1 7.5 Corporate and Other 1,165.0 1,329.6 2.6 5.6 4.7 4.6 Total $ 3,478.3 $ 3,631.5 $ 64.2 $ 74.4 $ 63.1 $ 64.2 |
RESTRUCTURING ACTIONS RESTRUC32
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2015 and 2014 . Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Severance costs $ 1.1 $ 2.2 $ 16.2 $ 18.8 Asset write-offs 0.7 — 0.7 1.3 Other restructuring costs — 0.9 0.9 2.1 Total restructuring costs $ 1.8 $ 3.1 $ 17.8 $ 22.2 By segment: Industrial Process $ 0.6 $ 1.6 $ 10.6 $ 4.5 Motion Technologies — 0.1 — 0.3 Interconnect Solutions 0.9 0.4 6.2 16.4 Control Technologies 0.3 — 0.8 — Corporate and Other — 1.0 0.2 1.0 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the nine months ended September 30, 2015 and 2014 . For the Nine Months Ended September 30 2015 2014 Restructuring accruals - beginning balance $ 21.9 $ 14.7 Restructuring costs 17.8 22.2 Cash payments (19.5 ) (13.0 ) Asset write-offs (0.7 ) (1.3 ) Foreign exchange translation and other (0.3 ) (0.5 ) Restructuring accrual - ending balance $ 19.2 $ 22.1 By accrual type: Severance accrual $ 18.2 $ 20.0 Facility carrying and other costs accrual 1.0 2.1 |
2015 Interconnect Solutions Restructuring Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | 2015 Interconnect Solutions Restructuring Actions In May 2015, we announced a restructuring action for the Company's Interconnect Solutions (ICS) segment to reduce overall costs and better align the segment with current market conditions. The Company expects to incur cash restructuring costs, principally involuntary severance, of approximately $12 for 110 employees, which represents 6% of the ICS global workforce. The Company expects to substantially complete these actions in the next twelve months. The following table provides a rollforward of the restructuring accruals associated with the 2015 ICS restructuring action. For the Nine Months Ended September 30 2015 Restructuring accruals - beginning balance $ — Restructuring costs 6.4 Cash payments (4.8 ) Restructuring accruals - ending balance $ 1.6 |
2015 Industrial Process Restructuring Action [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | 2015 Industrial Process Restructuring Actions In March 2015, we announced a series of restructuring actions in the Company's Industrial Process segment related to a strategic reorganization of the business and to achieve efficiencies and reduce the overall cost structure. The Company expects to incur cash restructuring costs, principally involuntary severance costs of approximately $15 to $16 and other non-cash restructuring costs of approximately $2 in aggregate related to this action. The costs incurred during the nine months ended September 30, 2015 primarily relate to employee severance for approximately 200 planned headcount reductions. We expect to incur the remaining restructuring costs of approximately $6 to $7 over the next 3 to 6 months related to this action. The following table provides a rollforward of the restructuring accruals associated with the 2015 Industrial Process restructuring actions. For the Nine Months Ended September 30 2015 Restructuring accruals - beginning balance $ — Restructuring costs 10.6 Cash payments (3.1 ) Asset write-offs (0.7 ) Restructuring accruals - ending balance $ 6.8 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 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 for the three and nine months ended September 30, 2015 and 2014 . Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Basic weighted average common shares outstanding 89.4 91.6 89.9 91.5 Add: Dilutive impact of outstanding equity awards 0.9 1.3 0.9 1.4 Diluted weighted average common shares outstanding 90.3 92.9 90.8 92.9 |
Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings | The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2015 and 2014 because they were anti-dilutive. Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Anti-dilutive stock options 0.4 0.2 0.4 0.2 Average exercise price $ 42.42 $ 43.51 $ 42.53 $ 43.51 Year(s) of expiration 2024 - 2025 2024 2024 - 2025 2024 |
RECEIVABLES, NET (Tables)
RECEIVABLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
RECEIVABLES, NET | September 30, December 31, Trade accounts receivable $ 535.6 $ 476.8 Notes receivable 3.2 6.1 Other 43.2 30.5 Receivables, gross 582.0 513.4 Less: Allowance for doubtful accounts (14.2 ) (13.3 ) Receivables, net $ 567.8 $ 500.1 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | September 30, December 31, Finished goods $ 62.6 $ 70.5 Work in process 68.0 59.9 Raw materials 155.9 148.5 Inventoried costs related to long-term contracts 51.4 61.4 Total inventory before progress payments 337.9 340.3 Less: Progress payments (38.2 ) (38.0 ) Inventories, net $ 299.7 $ 302.3 |
OTHER CURRENT AND NON-CURRENT36
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current and Non Current Assets | September 30, December 31, Asbestos-related assets $ 74.5 $ 102.4 Current deferred income taxes 58.4 56.2 Short-term investments 10.3 5.4 Prepaid income taxes 10.6 25.9 Other 44.9 59.9 Other current assets $ 198.7 $ 249.8 Other employee benefit-related assets $ 92.0 $ 93.0 Capitalized software costs 29.2 26.8 Other 27.4 30.0 Other non-current assets $ 148.6 $ 149.8 |
PLANT, PROPERTY AND EQUIPMENT37
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Plant, Property and Equipment, Net | September 30, December 31, Land and improvements $ 22.0 $ 24.0 Machinery and equipment 871.9 870.3 Buildings and improvements 222.5 228.8 Furniture, fixtures and office equipment 64.3 65.8 Construction work in progress 34.3 44.5 Other 6.2 7.8 Plant, property and equipment, gross 1,221.2 1,241.2 Less: Accumulated depreciation (806.8 ) (797.3 ) Plant, property and equipment, net $ 414.4 $ 443.9 |
GOODWILL AND OTHER INTANGIBLE38
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2015 by segment. Industrial Process Motion Technologies Interconnect Solutions Control Technologies Total Goodwill - December 31, 2014 $ 331.9 $ 43.9 $ 71.2 $ 185.1 $ 632.1 Acquired — — — 13.3 13.3 Allocated to Divestiture — — — (2.7 ) (2.7 ) Foreign currency (14.7 ) (3.6 ) (1.7 ) — (20.0 ) Goodwill - September 30, 2015 $ 317.2 $ 40.3 $ 69.5 $ 195.7 $ 622.7 |
Other Intangible Assets | Other Intangible Assets, Net September 30, 2015 December 31, 2014 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 96.3 $ (41.4 ) $ 54.9 $ 83.1 $ (38.3 ) $ 44.8 Proprietary technology 35.3 (11.0 ) 24.3 28.1 (9.9 ) 18.2 Patents and other 8.7 (6.2 ) 2.5 15.2 (13.1 ) 2.1 Finite-lived intangible total 140.3 (58.6 ) 81.7 126.4 (61.3 ) 65.1 Indefinite-lived intangibles 24.9 — 24.9 26.3 — 26.3 Other Intangible Assets $ 165.2 $ (58.6 ) $ 106.6 $ 152.7 $ (61.3 ) $ 91.4 |
ACCRUED AND OTHER CURRENT LIA39
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Non-Current Liabilities | September 30, December 31, Compensation and other employee-related benefits $ 146.8 $ 176.5 Asbestos-related liabilities 87.6 106.6 Customer-related liabilities 41.7 41.3 Accrued income taxes and other tax-related liabilities 39.8 28.0 Environmental liabilities and other legal matters 27.0 31.6 Accrued restructuring 19.2 21.9 Accrued warranty costs 22.2 29.4 Other accrued liabilities 30.5 30.5 Accrued liabilities $ 414.8 $ 465.8 Deferred income taxes and other tax-related accruals $ 53.9 $ 112.2 Environmental liabilities 69.0 80.2 Compensation and other employee-related benefits 35.2 38.6 Other 36.1 38.5 Other non-current liabilities $ 194.2 $ 269.5 |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans | The following tables provide the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three and nine months ended September 30, 2015 and 2014 . 2015 2014 Three Months Ended September 30 Pension Other Benefits Total Pension Other Benefits Total Service cost $ 1.4 $ 0.3 $ 1.7 $ 1.2 $ 0.5 $ 1.7 Interest cost 3.6 1.4 5.0 3.9 2.0 5.9 Expected return on plan assets (5.1 ) (0.2 ) (5.3 ) (5.1 ) (0.2 ) (5.3 ) Amortization of prior service cost (benefit) 0.2 (2.8 ) (2.6 ) 0.1 (1.5 ) (1.4 ) Amortization of net actuarial loss 2.2 1.3 3.5 1.6 0.8 2.4 Total net periodic benefit cost $ 2.3 $ — $ 2.3 $ 1.7 $ 1.6 $ 3.3 2015 2014 Nine Months Ended September 30 Pension Other Total Pension Other Total Service cost $ 4.0 $ 0.7 $ 4.7 $ 3.7 $ 1.4 $ 5.1 Interest cost 10.7 3.8 14.5 11.7 5.9 17.6 Expected return on plan assets (15.3 ) (0.6 ) (15.9 ) (15.5 ) (0.5 ) (16.0 ) Amortization of prior service cost (benefit) 0.7 (8.3 ) (7.6 ) 0.5 (4.5 ) (4.0 ) Amortization of net actuarial loss 6.5 3.5 10.0 4.7 2.3 7.0 Total net periodic benefit cost $ 6.6 $ (0.9 ) $ 5.7 $ 5.1 $ 4.6 $ 9.7 |
LONG-TERM INCENTIVE EMPLOYEE 41
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2015 and 2014 . Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Equity based awards $ 4.2 $ 4.0 $ 11.1 $ 10.8 Liability-based awards (0.1 ) 1.0 0.8 2.9 Total share-based compensation expense $ 4.1 $ 5.0 $ 11.9 $ 13.7 |
Summary of Long-Term Incentive Plan Award Grants during year | # of Awards Granted Grant Date Fair Value Non-qualified stock options (NQOs) 0.2 $ 11.23 Restricted stock units (RSUs) 0.3 $ 40.93 Total shareholder return (TSR) awards 0.1 $ 45.67 Return on invested capital (ROIC) awards 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 1.1% Expected volatility 29.4% Expected life 5.8 years Risk-free rates 1.7% Grant date fair value $11.23 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Liability Contingencies [Table Text Block] | As of September 30, 2015 , there were 38 thousand pending active claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: For the Nine Months Ended September 30 (in thousands) 2015 2014 Pending claims – Beginning 62 79 New claims 3 3 Settlements (1 ) (2 ) Dismissals (26 ) (12 ) Pending claims – Ending 38 68 Pending inactive claims (a) — 18 Pending active claims 38 50 (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. As of September 30, 2015, all inactive claims have been dismissed. |
Net Asbestos Charges [Table Text Block] | In addition to the charges associated with our annual remeasurement, we record a net asbestos charge each quarter to maintain a rolling 10-year forecast period. The table below summarizes the total net asbestos charges for the three and nine months ended September 30, 2015 and 2014. Three Months Nine Months For the Periods Ended September 30 2015 2014 2015 2014 Asbestos provision $ 15.7 $ 16.3 $ 47.0 $ 48.0 Defense cost adjustment — — (100.7 ) — Net asbestos remeasurement (44.8 ) (58.8 ) (44.8 ) (58.8 ) Settlement agreement (1.2 ) — (1.2 ) — Asbestos-related (benefit) costs, net $ (30.3 ) $ (42.5 ) $ (99.7 ) $ (10.8 ) |
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 $631.9 and $746.8 as of September 30, 2015 and December 31, 2014 , respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the nine months ended September 30, 2015 . Liability Asset Net Balance as of December 31, 2014 $ 1,223.2 $ 476.4 $ 746.8 Asbestos provision 54.8 7.8 47.0 Defense cost adjustment (124.2 ) (23.5 ) (100.7 ) Asbestos remeasurement (52.7 ) (7.9 ) (44.8 ) Settlement agreement — 1.2 (1.2 ) Net cash activity (52.3 ) (37.1 ) (15.2 ) Balance as of September 30, 2015 $ 1,048.8 $ 416.9 $ 631.9 Current portion $ 87.6 $ 74.5 Noncurrent portion $ 961.2 $ 342.4 |
Rollforward of Environmental Liability and Related Assets | The following table provides a rollforward of the estimated environmental liability and related assets for the nine months ended September 30, 2015 . Liability Asset Net Balance as of December 31, 2014 $ 89.9 $ 7.7 $ 82.2 Change in estimates for pre-existing accruals Continuing operations 1.4 0.3 1.1 Discontinued operations (2.8 ) (0.9 ) (1.9 ) Accruals added during the period for new matters — — — Net cash activity (9.1 ) (0.4 ) (8.7 ) Foreign currency (0.4 ) — (0.4 ) Balance as of September 30, 2015 $ 79.0 $ 6.7 $ 72.3 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Revenue (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | Segment | 4 | |||
Revenue | $ 601.9 | $ 657.1 | $ 1,818.8 | $ 1,994.6 |
Operating Income | $ 103.9 | $ 119.7 | $ 326.3 | $ 222.5 |
Operating Margin | 17.30% | 18.20% | 17.90% | 11.20% |
Total Segment Results [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 603.1 | $ 658.8 | $ 1,822.3 | $ 1,999.8 |
Operating Income | $ 84.6 | $ 94.4 | $ 255 | $ 260 |
Operating Margin | 14.10% | 14.40% | 14.00% | 13.00% |
Industrial Process [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 270.6 | $ 292.7 | $ 813.7 | $ 867.6 |
Operating Income | $ 34 | $ 31 | $ 95.9 | $ 80.7 |
Operating Margin | 12.60% | 10.60% | 11.80% | 9.30% |
Motion Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 179.9 | $ 197 | $ 555.5 | $ 612.8 |
Operating Income | $ 33 | $ 36.5 | $ 111 | $ 111.4 |
Operating Margin | 18.30% | 18.50% | 20.00% | 18.20% |
Interconnect Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 82.8 | $ 98.4 | $ 243 | $ 302.1 |
Operating Income | $ 3.6 | $ 11.2 | $ 7.6 | $ 20.5 |
Operating Margin | 4.30% | 11.40% | 3.10% | 6.80% |
Control Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 69.8 | $ 70.7 | $ 210.1 | $ 217.3 |
Operating Income | $ 14 | $ 15.7 | $ 40.5 | $ 47.4 |
Operating Margin | 20.10% | 22.20% | 19.30% | 21.80% |
Total Eliminations / Corporate and Other costs | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ (1.2) | $ (1.7) | $ (3.5) | $ (5.2) |
Operating Income | $ 19.3 | $ 25.3 | $ 71.3 | $ (37.5) |
Operating Margin | 0.00% | 0.00% | 0.00% | 0.00% |
Asbestos-related costs, net | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
Operating Income | $ 30.3 | $ 42.5 | $ 99.7 | $ 10.8 |
Operating Margin | 0.00% | 0.00% | 0.00% | 0.00% |
Eliminations / Other corporate costs | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ (1.2) | $ (1.7) | $ (3.5) | $ (5.2) |
Operating Income | $ (11) | $ (17.2) | $ (28.4) | $ (48.3) |
Operating Margin | 0.00% | 0.00% | 0.00% | 0.00% |
SEGMENT INFORMATION - Schedul44
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | [1] | |
Segment Reporting Information [Line Items] | ||||
Total Assets | $ 3,478.3 | $ 3,631.5 | ||
Capital Expenditures | 64.2 | $ 74.4 | ||
Depreciation & Amortization | 63.1 | 64.2 | ||
Industrial Process [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,114.5 | 1,152.3 | ||
Capital Expenditures | 13 | 26.5 | ||
Depreciation & Amortization | 20.9 | 21.3 | ||
Motion Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 449.4 | 450.1 | ||
Capital Expenditures | 28.7 | 32.5 | ||
Depreciation & Amortization | 20.5 | 21.9 | ||
Interconnect Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 368.6 | 365.4 | ||
Capital Expenditures | 15.6 | 8.5 | ||
Depreciation & Amortization | 7.9 | 8.9 | ||
Control Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 380.8 | 334.1 | ||
Capital Expenditures | 4.3 | 1.3 | ||
Depreciation & Amortization | 9.1 | 7.5 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,165 | $ 1,329.6 | ||
Capital Expenditures | 2.6 | 5.6 | ||
Depreciation & Amortization | $ 4.7 | $ 4.6 | ||
[1] | Amounts reflect balances as of December 31, 2014. |
RESTRUCTURING ACTIONS Restruc45
RESTRUCTURING ACTIONS Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 1.8 | $ 3.1 | $ 17.8 | $ 22.2 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1.1 | 2.2 | 16.2 | 18.8 |
Restructuring Asset Write-Off [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.7 | 0 | 0.7 | 1.3 |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0.9 | 0.9 | 2.1 |
Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.6 | 1.6 | 10.6 | 4.5 |
Motion Technologies [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0.1 | 0 | 0.3 |
Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.9 | 0.4 | 6.2 | 16.4 |
Control Technologies [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.3 | 0 | 0.8 | 0 |
Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 1 | $ 0.2 | $ 1 |
RESTRUCTURING ACTIONS Restruc46
RESTRUCTURING ACTIONS Restructuring Accrual Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | $ 21.9 | $ 14.7 | ||
Restructuring costs | $ 1.8 | $ 3.1 | 17.8 | 22.2 |
Payments for Restructuring | (19.5) | (13) | ||
Asset Write-Offs | (0.7) | (1.3) | ||
Restructuring Reserve, Translation Adjustment | (0.3) | (0.5) | ||
Restructuring Reserve - Ending Balance | 19.2 | 22.1 | 19.2 | 22.1 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1.1 | 2.2 | 16.2 | 18.8 |
Restructuring Reserve - Ending Balance | 18.2 | 20 | 18.2 | 20 |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0.9 | 0.9 | 2.1 |
Restructuring Reserve - Ending Balance | 1 | 2.1 | 1 | 2.1 |
Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.9 | 0.4 | 6.2 | 16.4 |
Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.6 | $ 1.6 | 10.6 | $ 4.5 |
2015 Interconnect Solutions Restructuring Actions [Member] | Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 0 | |||
Restructuring costs | 6.4 | |||
Payments for Restructuring | (4.8) | |||
Restructuring Reserve - Ending Balance | 1.6 | 1.6 | ||
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 0 | |||
Restructuring costs | 10.6 | |||
Payments for Restructuring | (3.1) | |||
Asset Write-Offs | (0.7) | |||
Restructuring Reserve - Ending Balance | $ 6.8 | $ 6.8 |
RESTRUCTURING ACTIONS Restruc47
RESTRUCTURING ACTIONS Restructuring Textuals (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015USD ($)Employees | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Payments for Restructuring | $ 19.5 | $ 13 | ||
Accrued restructuring | 19.2 | $ 22.1 | $ 21.9 | $ 14.7 |
2015 Interconnect Solutions Restructuring Actions [Member] | Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Restucturing Costs Under Plan, Cash Costs | $ 12 | |||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 110 | |||
Payments for Restructuring | $ 4.8 | |||
Accrued restructuring | $ 1.6 | 0 | ||
Restructuring Action, Headcount Reduction Percentage of Segment Workforce | 6.00% | |||
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Settled without Cash | $ 2 | |||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 200 | |||
Payments for Restructuring | $ 3.1 | |||
Accrued restructuring | 6.8 | $ 0 | ||
2015 Industrial Process Restructuring Action [Member] | Minimum [Member] | Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Restucturing Costs Under Plan, Cash Costs | 15 | |||
Restructuring and related costs, expected cost remaining | 6 | |||
2015 Industrial Process Restructuring Action [Member] | Maximum [Member] | Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Total Expected Restucturing Costs Under Plan, Cash Costs | 16 | |||
Restructuring and related costs, expected cost remaining | 7 | |||
2013 2014 Interconnect Solutions Restructuring Actions [Member] | Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Accrual Reversal | 0.2 | |||
Payments for Restructuring | 7.3 | |||
Accrued restructuring | $ 9.4 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Contingency [Line Items] | ||||
Tax Matters Agreement Receivable, Continuing Operations | $ 1.6 | $ 1.6 | ||
Tax Matters Agreement Receivable, Discontinued Operations | 13.2 | 13.2 | ||
Income tax expense | $ 11.4 | $ 38 | $ 53 | $ 63.4 |
Effective income tax rate | 10.60% | 31.90% | 16.10% | 28.80% |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 17.7 | $ 17.7 | ||
Continuing Operations [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 18 | |||
Discontinued Operations [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 20.9 | |||
Tax Benefit from Audit Adjustments [Member] | Continuing Operations [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 8 | |||
Recognition of Previously Unrecognized Tax Position [Member] | Continuing Operations [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 10 | |||
Recognition of Previously Unrecognized Tax Position [Member] | Discontinued Operations [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | 38.3 | |||
Tax Expense from Audit Adjustments [Member] | Discontinued Operations [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax Adjustments, Settlements, and Unusual Provisions | $ 17.4 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares – basic | 89.4 | 91.6 | 89.9 | 91.5 |
Add: Dilutive impact of outstanding equity awards | 0.9 | 1.3 | 0.9 | 1.4 |
Diluted weighted average common shares outstanding | 90.3 | 92.9 | 90.8 | 92.9 |
EARNINGS PER SHARE - Number of
EARNINGS PER SHARE - Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings (Loss) (Detail) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 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 | 0.2 | 0.2 |
Anti-dilutive stock options | 0.4 | 0.2 | 0.4 | 0.2 |
Average exercise price | $ 42.42 | $ 43.51 | $ 42.53 | $ 43.51 |
Minimum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Years of expiration | 2,024 | 2,024 | 2,024 | 2,024 |
Maximum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Years of expiration | 2,025 | 2,024 | 2,025 | 2,024 |
RECEIVABLES, NET - (Detail)
RECEIVABLES, NET - (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 535.6 | $ 476.8 |
Notes receivable | 3.2 | 6.1 |
Other | 43.2 | 30.5 |
Receivables, gross | 582 | 513.4 |
Less: Allowance for doubtful accounts | (14.2) | (13.3) |
Receivables, net | $ 567.8 | $ 500.1 |
INVENTORIES, NET - Components o
INVENTORIES, NET - Components of Inventories, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 62.6 | $ 70.5 |
Work in process | 68 | 59.9 |
Raw materials | 155.9 | 148.5 |
Inventoried costs related to long-term contracts | 51.4 | 61.4 |
Total inventory before progress payments | 337.9 | 340.3 |
Less: Progress payments | (38.2) | (38) |
Inventories, net | $ 299.7 | $ 302.3 |
OTHER CURRENT AND NON-CURRENT53
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Asbestos-related assets | $ 74.5 | $ 102.4 |
Current deferred income taxes | 58.4 | 56.2 |
Prepaid income taxes | 10.6 | 25.9 |
Short-term investments | 10.3 | 5.4 |
Other | 44.9 | 59.9 |
Other current assets | 198.7 | 249.8 |
Other employee benefit-related assets | 92 | 93 |
Capitalized software costs | 29.2 | 26.8 |
Other | 27.4 | 30 |
Other non-current assets | $ 148.6 | $ 149.8 |
PLANT, PROPERTY AND EQUIPMENT54
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 22 | $ 24 |
Machinery and equipment | 871.9 | 870.3 |
Buildings and improvements | 222.5 | 228.8 |
Furniture, fixtures and office equipment | 64.3 | 65.8 |
Construction work in progress | 34.3 | 44.5 |
Other | 6.2 | 7.8 |
Plant, property and equipment, gross | 1,221.2 | 1,241.2 |
Less: Accumulated depreciation | (806.8) | (797.3) |
Plant, property and equipment, net | $ 414.4 | $ 443.9 |
PLANT, PROPERTY AND EQUIPMENT55
PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 16.4 | $ 18.5 | $ 50.4 | $ 52.2 |
GOODWILL AND OTHER INTANGIBLE56
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | $ 632.1 |
Acquired | 13.3 |
Allocated to Divestiture | (2.7) |
Foreign currency | (20) |
Goodwill - Ending Balance | 622.7 |
Industrial Process [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 331.9 |
Acquired | 0 |
Allocated to Divestiture | 0 |
Foreign currency | (14.7) |
Goodwill - Ending Balance | 317.2 |
Motion Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 43.9 |
Acquired | 0 |
Allocated to Divestiture | 0 |
Foreign currency | (3.6) |
Goodwill - Ending Balance | 40.3 |
Interconnect Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 71.2 |
Acquired | 0 |
Allocated to Divestiture | 0 |
Foreign currency | (1.7) |
Goodwill - Ending Balance | 69.5 |
Control Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 185.1 |
Acquired | 13.3 |
Allocated to Divestiture | (2.7) |
Foreign currency | 0 |
Goodwill - Ending Balance | $ 195.7 |
GOODWILL AND OTHER INTANGIBLE57
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill - Additional Information (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Goodwill [Line Items] | |
Allocated to Divestiture | $ 2.7 |
Control Technologies [Member] | |
Goodwill [Line Items] | |
Allocated to Divestiture | 2.7 |
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 0.1 |
GOODWILL AND OTHER INTANGIBLE58
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Other Intangible Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 140.3 | $ 126.4 |
Indefinite-lived intangible assets, Gross/Net Carrying Amount | 24.9 | 26.3 |
Other Intangible Assets, Gross Carrying Amount | 165.2 | 152.7 |
Accumulated Amortization | (58.6) | (61.3) |
Finite-live intangible asset, net of accumulated amortization | 81.7 | 65.1 |
Other intangible assets, net | 106.6 | 91.4 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer Relationships, Gross Carrying Amount | 96.3 | 83.1 |
Accumulated Amortization | (41.4) | (38.3) |
Finite-live intangible asset, net of accumulated amortization | 54.9 | 44.8 |
Proprietary Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Proprietary Technology, Gross Carrying Amount | 35.3 | 28.1 |
Accumulated Amortization | (11) | (9.9) |
Finite-live intangible asset, net of accumulated amortization | 24.3 | 18.2 |
Patents and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Other, Gross Carrying Amount | 8.7 | 15.2 |
Accumulated Amortization | (6.2) | (13.1) |
Finite-live intangible asset, net of accumulated amortization | 2.5 | $ 2.1 |
Hartzell Aerospace Acquisition [Member] | Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Fair Value of Intangible Assets Acquired | 17.1 | |
Hartzell Aerospace Acquisition [Member] | Proprietary Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Fair Value of Intangible Assets Acquired | $ 9.6 |
GOODWILL AND OTHER INTANGIBLE59
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Other Intangible Assets Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of Intangible Assets | $ 3 | $ 2.5 | $ 8.7 | $ 8.8 |
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | |||
Proprietary Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | |||
Order or Production Backlog [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 months |
ACCRUED AND OTHER CURRENT LIA60
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Payables and Accruals [Abstract] | ||||
Compensation and other employee-related benefits | $ 146.8 | $ 176.5 | ||
Asbestos-related liabilities | 87.6 | 106.6 | ||
Customer-related liabilities | 41.7 | 41.3 | ||
Accrued income taxes and other tax-related liabilities | 39.8 | 28 | ||
Environmental liabilities and other legal matters | 27 | 31.6 | ||
Accrued restructuring | 19.2 | 21.9 | $ 22.1 | $ 14.7 |
Accrued warranty costs | 22.2 | 29.4 | ||
Other accrued liabilities | 30.5 | 30.5 | ||
Accrued liabilities | 414.8 | 465.8 | ||
Deferred income taxes and other tax-related accruals | 53.9 | 112.2 | ||
Environmental liabilities | 69 | 80.2 | ||
Compensation and other employee-related benefits | 35.2 | 38.6 | ||
Other | 36.1 | 38.5 | ||
Other non-current liabilities | $ 194.2 | $ 269.5 |
COMMERCIAL PAPER Commercial P61
COMMERCIAL PAPER Commercial Paper (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Commercial paper | $ 10.5 | $ 0 |
Commercial Paper, Weighted Average Interest Rate | 0.68% |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 1.7 | $ 1.7 | $ 4.7 | $ 5.1 |
Interest cost | 5 | 5.9 | 14.5 | 17.6 |
Expected return on plan assets | (5.3) | (5.3) | (15.9) | (16) |
Amortization of prior service cost (benefit) | (2.6) | (1.4) | (7.6) | (4) |
Amortization of net actuarial loss | 3.5 | 2.4 | 10 | 7 |
Total net periodic benefit cost | 2.3 | 3.3 | 5.7 | 9.7 |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1.4 | 1.2 | 4 | 3.7 |
Interest cost | 3.6 | 3.9 | 10.7 | 11.7 |
Expected return on plan assets | (5.1) | (5.1) | (15.3) | (15.5) |
Amortization of prior service cost (benefit) | 0.2 | 0.1 | 0.7 | 0.5 |
Amortization of net actuarial loss | 2.2 | 1.6 | 6.5 | 4.7 |
Total net periodic benefit cost | 2.3 | 1.7 | 6.6 | 5.1 |
Other Postretirement Benefit Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.3 | 0.5 | 0.7 | 1.4 |
Interest cost | 1.4 | 2 | 3.8 | 5.9 |
Expected return on plan assets | (0.2) | (0.2) | (0.6) | (0.5) |
Amortization of prior service cost (benefit) | (2.8) | (1.5) | (8.3) | (4.5) |
Amortization of net actuarial loss | 1.3 | 0.8 | 3.5 | 2.3 |
Total net periodic benefit cost | $ 0 | $ 1.6 | $ (0.9) | $ 4.6 |
POSTRETIREMENT BENEFIT PLANS Po
POSTRETIREMENT BENEFIT PLANS Postretirement Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Defined Benefit Plan, Contributions by Employer | $ 8.2 | $ 7.7 | ||
Reclassification of Postretirement Costs from AOCI, Net of Tax | $ 0.8 | $ 0.8 | 1.9 | $ 2.1 |
Minimum [Member] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 2 | |||
Maximum [Member] | ||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 5 |
LONG-TERM INCENTIVE EMPLOYEE 64
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation expense, equity-based awards | $ 4.2 | $ 4 | $ 11.1 | $ 10.8 |
Share-based compensation expense, liability-based awards | (0.1) | 1 | 0.8 | 2.9 |
Total share-based compensation expense in operating income (loss) | $ 4.1 | $ 5 | $ 11.9 | $ 13.7 |
LONG-TERM INCENTIVE EMPLOYEE 65
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 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 | 0.3 | 0.8 | |
Proceeds from the exercise of stock options | $ 5.5 | $ 14.3 | |
Restricted stock vested during period | 0.3 | 0.3 | |
Equity Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost not yet recognized | $ 25.8 | $ 25.8 | |
Unrecognized compensation cost weighted-average period | 2 years 1 month 6 days | ||
Liability Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost not yet recognized | $ 2.4 | $ 2.4 | |
Unrecognized compensation cost weighted-average period | 2 years |
LONG-TERM INCENTIVE EMPLOYEE 66
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) shares in Millions | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
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 | shares | 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 | shares | 0.3 |
Grant Date Fair Value | $ 40.93 |
TSR [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 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 | shares | 0.1 |
Grant Date Fair Value | $ 40.12 |
LONG-TERM INCENTIVE EMPLOYEE 67
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Weighted Average Assumptions (Detail) | 9 Months Ended |
Sep. 30, 2015$ / shares | |
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 Info
CAPITAL STOCK - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | 107 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program | $ 1,000 | $ 1,000 | |
Repurchase of shares of common stock | 2 | 0.4 | |
Aggregate cost of repurchase | $ 80 | $ 20 | |
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 | $ 3.9 | $ 5.5 | |
2006 Share Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of shares of common stock | 18.4 | ||
Aggregate cost of repurchase | $ 759.3 |
COMMITMENTS AND CONTINGENCIES R
COMMITMENTS AND CONTINGENCIES Rollforward of Asbestos Claims (Detail) - Asbestos Issue [Member] - Claim Claim in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Asbestos Claims [Rollforward] | |||
Pending claims – Beginning | 62 | 79 | |
New claims | 3 | 3 | |
Settlements | (1) | (2) | |
Dismissals | (26) | (12) | |
Pending claims – Ending | 38 | 68 | |
Inactive [Member] | |||
Asbestos Claims [Rollforward] | |||
Pending claims – Ending | [1] | 0 | 18 |
Active [Member] | |||
Asbestos Claims [Rollforward] | |||
Pending claims – Ending | 38 | 50 | |
[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. As of September 30, 2015, all inactive claims have been dismissed. |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES Asbestos Related Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Asbestos Related Contingencies [Line Items] | ||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 15.7 | $ 16.3 | $ 47 | $ 48 |
Defense cost adjustment | 0 | 0 | (100.7) | 0 |
Asbestos Related Remeasurement Costs Before Tax | 44.8 | 58.8 | 44.8 | 58.8 |
Gain From Asbestos Insurance Settlement Agreement | (1.2) | 0 | (1.2) | 0 |
Asbestos-related (benefit) costs, net | $ (30.3) | $ (42.5) | (99.7) | $ (10.8) |
Liability [Member] | ||||
Asbestos Related Contingencies [Line Items] | ||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 54.8 | |||
Defense cost adjustment | (124.2) | |||
Asbestos Related Remeasurement Costs Before Tax | 52.7 | |||
Gain From Asbestos Insurance Settlement Agreement | 0 | |||
Assets [Member] | ||||
Asbestos Related Contingencies [Line Items] | ||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | (7.8) | |||
Defense cost adjustment | 23.5 | |||
Asbestos Related Remeasurement Costs Before Tax | 7.9 | |||
Gain From Asbestos Insurance Settlement Agreement | $ 1.2 |
COMMITMENTS AND CONTINGENCIES71
COMMITMENTS AND CONTINGENCIES Roll Forward of Asbestos Liability and Related Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Net Asbestos Liability Rollforward [Line Items] | |||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | $ 746.8 | ||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 15.7 | $ 16.3 | 47 | $ 48 | |
Defense cost adjustment | 0 | 0 | (100.7) | 0 | |
Asbestos Related Remeasurement Costs Before Tax | (44.8) | (58.8) | (44.8) | (58.8) | |
Gain From Asbestos Insurance Settlement Agreement | (1.2) | $ 0 | (1.2) | $ 0 | |
Increase Decrease Net Cash Activity | (15.2) | ||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | 631.9 | 631.9 | |||
Asbestos-related liabilities Current | 87.6 | 87.6 | $ 106.6 | ||
Asbestos-related liabilities Non-Current | 961.2 | 961.2 | 1,116.6 | ||
Asbestos-related assets Current | 74.5 | 74.5 | 102.4 | ||
Asbestos-related assets Non-Current | 342.4 | 342.4 | $ 374 | ||
Liability [Member] | |||||
Net Asbestos Liability Rollforward [Line Items] | |||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | 1,223.2 | ||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 54.8 | ||||
Defense cost adjustment | (124.2) | ||||
Asbestos Related Remeasurement Costs Before Tax | (52.7) | ||||
Gain From Asbestos Insurance Settlement Agreement | 0 | ||||
Increase Decrease Net Cash Activity | (52.3) | ||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | 1,048.8 | 1,048.8 | |||
Assets [Member] | |||||
Net Asbestos Liability Rollforward [Line Items] | |||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | (476.4) | ||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | (7.8) | ||||
Defense cost adjustment | 23.5 | ||||
Asbestos Related Remeasurement Costs Before Tax | (7.9) | ||||
Gain From Asbestos Insurance Settlement Agreement | 1.2 | ||||
Increase Decrease Net Cash Activity | 37.1 | ||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | $ (416.9) | $ (416.9) |
COMMITMENTS AND CONTINGENCIES72
COMMITMENTS AND CONTINGENCIES Asbestos Matters Textuals (Details) Claim in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($)Claim | Sep. 30, 2014USD ($)Claim | Sep. 30, 2015USD ($)Claim | Sep. 30, 2014USD ($)Claim | Dec. 31, 2014USD ($)Claim | Dec. 31, 2013Claim | ||
Asbestos Related Contingencies [Line Items] | |||||||
Asbestos Liability Measurement Periods for Claims Pending and Estimated to be Filed | 10 years | ||||||
Asbestos Related Remeasurement Costs Before Tax | $ (44.8) | $ (58.8) | $ (44.8) | $ (58.8) | |||
Gain From Asbestos Insurance Settlement Agreement | (1.2) | 0 | (1.2) | 0 | |||
Asbestos Liability And Related Assets Net Current And Noncurrent | 631.9 | 631.9 | $ 746.8 | ||||
Defense cost adjustment | 0 | 0 | (100.7) | 0 | |||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 15.7 | $ 16.3 | $ 47 | $ 48 | |||
Asbestos Issue [Member] | |||||||
Asbestos Related Contingencies [Line Items] | |||||||
Pending Asbestos Claims | Claim | 38 | 68 | 38 | 68 | 62 | 79 | |
Asbestos Issue [Member] | Active [Member] | |||||||
Asbestos Related Contingencies [Line Items] | |||||||
Pending Asbestos Claims | Claim | 38 | 50 | 38 | 50 | |||
Asbestos Issue [Member] | Inactive [Member] | |||||||
Asbestos Related Contingencies [Line Items] | |||||||
Pending Asbestos Claims | Claim | [1] | 0 | 18 | 0 | 18 | ||
Liability [Member] | |||||||
Asbestos Related Contingencies [Line Items] | |||||||
Asbestos Related Remeasurement Costs Before Tax | $ (52.7) | ||||||
Gain From Asbestos Insurance Settlement Agreement | 0 | ||||||
Asbestos Liability And Related Assets Net Current And Noncurrent | $ 1,048.8 | 1,048.8 | $ 1,223.2 | ||||
Defense cost adjustment | (124.2) | ||||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 54.8 | ||||||
Assets [Member] | |||||||
Asbestos Related Contingencies [Line Items] | |||||||
Asbestos Related Remeasurement Costs Before Tax | (7.9) | ||||||
Gain From Asbestos Insurance Settlement Agreement | 1.2 | ||||||
Asbestos Liability And Related Assets Net Current And Noncurrent | $ (416.9) | (416.9) | $ (476.4) | ||||
Defense cost adjustment | 23.5 | ||||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ (7.8) | ||||||
[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. As of September 30, 2015, all inactive claims have been dismissed. |
COMMITMENTS AND CONTINGENCIES73
COMMITMENTS AND CONTINGENCIES Rollforward of Environmental Liability and Related Assets (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Loss Contingency Accrual [Roll Forward] | |
Environmental liability - Beginning balance | $ 82.2 |
Net Cash Activity | 8.7 |
Foreign exchange translation | (0.4) |
Environmental liability - Ending balance | 72.3 |
Liability [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Environmental liability - Beginning balance | 89.9 |
Accruals added during the period for new matters, Liability | 0 |
Net Cash Activity | (9.1) |
Foreign exchange translation | (0.4) |
Environmental liability - Ending balance | 79 |
Assets [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Environmental liability - Beginning balance | (7.7) |
Net Cash Activity | 0.4 |
Foreign exchange translation | 0 |
Environmental liability - Ending balance | (6.7) |
Continuing Operations [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | 1.1 |
Continuing Operations [Member] | Liability [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | 1.4 |
Continuing Operations [Member] | Assets [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | (0.3) |
Discontinued Operations [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | (1.9) |
Discontinued Operations [Member] | Liability [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | (2.8) |
Discontinued Operations [Member] | Assets [Member] | |
Loss Contingency Accrual [Roll Forward] | |
Changes In Pre-Existing Environmental Accruals | $ 0.9 |
COMMITMENTS AND CONTINGENCIES74
COMMITMENTS AND CONTINGENCIES Range of Environmental Liability and Number of Active Sites (Details) - Environmental Related Matters [Member] $ in Millions | Sep. 30, 2015USD ($)site |
Site Contingency [Line Items] | |
Number Of Active Environmental Investigation And Remediation Sites | 53 |
Loss Contingency, Range of Possible Loss, Maximum | $ | $ 136 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)Employeessite | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Employeessite | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 53.5 | $ 2.8 | |||
Revenues | $ 601.9 | $ 657.1 | 1,818.8 | $ 1,994.6 | |
Goodwill | $ 622.7 | 622.7 | $ 632.1 | ||
Hartzell Aerospace Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 53.5 | ||||
Revenues | $ 34 | ||||
Entity Number of Employees | Employees | 240 | 240 | |||
Number of Real Estate Properties | site | 2 | 2 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 11.6 | $ 11.6 | |||
Goodwill | $ 13.3 | 13.3 | |||
Customer Relationships [Member] | Hartzell Aerospace Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value of Intangible Assets Acquired | 17.1 | ||||
Proprietary Technology [Member] | Hartzell Aerospace Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value of Intangible Assets Acquired | 9.6 | ||||
Order or Production Backlog [Member] | Hartzell Aerospace Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair Value of Intangible Assets Acquired | $ 1.9 |
SUBSEQUENT EVENTS Subsequent 76
SUBSEQUENT EVENTS Subsequent Events (Details) $ in Millions | Oct. 05, 2015USD ($)Employees | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Subsequent Event [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 53.5 | $ 2.8 | ||
Wolverine Advanced Materials Acquisition [Member] | ||||
Subsequent Event [Line Items] | ||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 154 | |||
Sales to ITT Corp. | $ 17 | |||
Subsequent Event [Member] | Wolverine Advanced Materials Acquisition [Member] | ||||
Subsequent Event [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 300 | |||
Borrowings Against Revolving Credit Facility | $ 200 | |||
Entity Number of Employees | Employees | 500 |