Document and Entity Information
Document and Entity Information - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | May. 04, 2016 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 | 90.1 |
CONSOLIDATED CONDENSED INCOME S
CONSOLIDATED CONDENSED INCOME STATEMENTS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Revenue | $ 609.1 | $ 588.7 |
Costs of revenue | 413.8 | 389.7 |
Gross profit | 195.3 | 199 |
General and administrative expenses | 69 | 60.1 |
Sales and marketing expenses | 43.3 | 47.3 |
Research and development expenses | 19.2 | 18.3 |
Asbestos-related costs, net | 12.8 | 15.4 |
Operating income | 51 | 57.9 |
Interest and non-operating expenses, net | 1.7 | 1.2 |
Income from continuing operations before income tax expense | 49.3 | 56.7 |
Income tax expense | 11.7 | 18.1 |
Income from continuing operations | 37.6 | 38.6 |
(Loss) income from discontinued operations, net of tax | (0.3) | 3.4 |
Net income | 37.3 | 42 |
Less: Loss attributable to noncontrolling interests | (0.1) | (0.1) |
Net income attributable to ITT Corporation | 37.4 | 42.1 |
Amounts attributable to ITT Corporation: | ||
Income from continuing operations, net of tax | 37.7 | 38.7 |
(Loss) income from discontinued operations, net of tax | (0.3) | 3.4 |
Net income attributable to ITT Corporation | $ 37.4 | $ 42.1 |
Basic: | ||
Continuing operations | $ 0.42 | $ 0.42 |
Discontinued operations | 0 | 0.04 |
Net income | 0.42 | 0.46 |
Diluted: | ||
Continuing operations | 0.42 | 0.42 |
Discontinued operations | (0.01) | 0.04 |
Net income | $ 0.41 | $ 0.46 |
Weighted average common shares – basic | 89.6 | 90.6 |
Weighted average common shares – diluted | 90.5 | 91.6 |
Cash dividends declared per common share | $ 0.124 | $ 0.1183 |
CONSOLIDATED CONDENSED INCOME 3
CONSOLIDATED CONDENSED INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Statement [Abstract] | ||
Tax benefit on income from discontinued operations | $ 0.3 | $ 3.5 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 37.3 | $ 42 |
Other comprehensive income (loss): | ||
Net foreign currency translation adjustment | 27.2 | (60.9) |
Net change in postretirement benefit plans, net of tax impacts of $0.6 and $0.3, respectively | 1.1 | 0.5 |
Other comprehensive income (loss) | 28.3 | (60.4) |
Comprehensive income (loss) | 65.6 | (18.4) |
Less: Comprehensive loss attributable to noncontrolling interests | (0.1) | (0.1) |
Comprehensive income (loss) attributable to ITT Corporation | 65.7 | (18.3) |
Reclassification adjustments (see Note 14): | ||
Amortization of prior service benefit, net of tax expense of $(0.5) and $(0.9), respectively | (0.9) | (1.6) |
Amortization of net actuarial loss, net of tax benefits of $1.1 and $1.2, respectively | 2 | 2.1 |
Net change in postretirement benefit plans, net of tax impacts of $0.6 and $0.3, respectively | $ 1.1 | $ 0.5 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $ 0.6 | $ 0.3 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax | (0.5) | (0.9) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax | $ 1.1 | $ 1.2 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 430.9 | $ 415.7 | |
Receivables, net | 607 | 584.9 | |
Inventories, net | 301.3 | 292.7 | |
Total current assets | 227 | 204.4 | |
Total current assets | 1,566.2 | 1,497.7 | |
Plant, property and equipment, net | 443 | 443.5 | |
Goodwill | 787.6 | 778.3 | |
Other intangible assets, net | 181.2 | 187.2 | |
Asbestos-related assets | 331.3 | 337.5 | |
Deferred income taxes | 322.6 | 326.1 | |
Other non-current assets | 177.3 | 153.3 | |
Total non-current assets | 2,243 | 2,225.9 | |
Total assets | 3,809.2 | 3,723.6 | [1] |
Current liabilities: | |||
Short-term loans and current maturities of long-term debt | 275.2 | 245.7 | |
Accounts payable | 293.5 | 314.7 | |
Accrued liabilities | 385.3 | 392.7 | |
Total current liabilities | 954 | 953.1 | |
Asbestos-related liabilities | 957 | 954.8 | |
Postretirement benefits | 260.6 | 260.4 | |
Other non-current liabilities | 214.7 | 189.9 | |
Total non-current liabilities | 1,432.3 | 1,405.1 | |
Total liabilities | 2,386.3 | 2,358.2 | |
Shareholders’ equity: | |||
Outstanding – 90.0 shares and 89.5 shares, respectively | 90 | 89.5 | |
Retained earnings | 1,727.2 | 1,696.7 | |
Total accumulated other comprehensive loss | (395.8) | (424.1) | |
Total ITT Corporation shareholders' equity | 1,421.4 | 1,362.1 | |
Noncontrolling interests | 1.5 | 3.3 | |
Total shareholders’ equity | 1,422.9 | 1,365.4 | |
Total liabilities and shareholders’ equity | $ 3,809.2 | $ 3,723.6 | |
[1] | Amounts reflect balances as of December 31, 2015. |
CONSOLIDATED CONDENSED BALANCE7
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 250 | 250 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares issued | 104.7 | 104.5 |
Common stock, shares outstanding | 90 | 89.5 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating Activities | ||
Net income | $ 37.3 | $ 42 |
Less: (Loss) income from discontinued operations | (0.3) | 3.4 |
Less: Loss attributable to noncontrolling interests | (0.1) | (0.1) |
Income from continuing operations attributable to ITT Corporation | 37.7 | 38.7 |
Adjustments to income from continuing operations: | ||
Depreciation and amortization | 25.3 | 20.7 |
Stock-based compensation | 2.9 | 3.1 |
Asbestos-related costs, net | 12.8 | 15.4 |
Asbestos-related payments, net | (4.3) | (3.9) |
Changes in assets and liabilities: | ||
Change in receivables | (21) | (56.7) |
Change in inventories | (4) | 3.6 |
Change in accounts payable | (14.8) | (0.5) |
Change in accrued expenses | (28.8) | (21.3) |
Change in Accrued and Deferred Income Taxes | 3.4 | 17.2 |
Other, net | (3.5) | (8.1) |
Net Cash – Operating activities | 5.7 | 8.2 |
Investing Activities | ||
Capital expenditures | (21) | (30.2) |
Acquisitions, net of cash acquired | (0.2) | 0 |
Purchases of investments | (40) | (15.3) |
Maturities of investments | 36.3 | 5.3 |
Other, net | 0.1 | 0.2 |
Net Cash – Investing activities | (24.8) | (40) |
Financing Activities | ||
Commercial paper, net borrowings | 28.5 | 113.5 |
Short-term revolving loans, borrowings | 27.7 | 0 |
Short-term revolving loans, repayments | (27.7) | 0 |
Repurchase of common stock | (6.9) | (82.8) |
Proceeds from issuance of common stock | 6.1 | 2 |
Dividends paid | (11.4) | (0.3) |
Excess tax benefit from equity compensation activity | 3 | 1.8 |
Other, net | (2.4) | (0.2) |
Net Cash – Financing activities | 16.9 | 34 |
Exchange rate effects on cash and cash equivalents | 9.9 | (15.8) |
Net Cash – Operating activities of discontinued operations | 7.5 | (0.3) |
Net change in cash and cash equivalents | 15.2 | (13.9) |
Cash and cash equivalents – beginning of year | 415.7 | 584 |
Cash and cash equivalents – end of period | 430.9 | 570.1 |
Cash paid during the year for: | ||
Interest | 1.4 | 0 |
Income taxes, net of refunds received | $ 5 | $ (1) |
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, 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 | 0.3 | ||||
Net income attributable to ITT Corporation | 42.1 | 42.1 | |||
Dividends declared | (10.5) | ||||
Activity from stock incentive plans | 6.5 | ||||
Share repurchases | (2.1) | (81.5) | |||
Net change in postretirement benefit plans | 0.5 | 0.5 | |||
Net cumulative translation adjustment | (60.9) | ||||
Loss attributable to noncontrolling interests | 0.1 | (0.1) | |||
Dividend to noncontrolling interest shareholders | 0 | ||||
Change In Equity From Noncontrolling Interest Attributable To Other | 0 | ||||
Postretirement benefit plans, ending balance at Mar. 31, 2015 | (143.7) | ||||
Cumulative translation adjustment, ending balance at Mar. 31, 2015 | (237.6) | ||||
Unrealized loss on investment securities, ending balance at Mar. 31, 2015 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (1.8) | ||||
Net change in retained earnings | (43.4) | ||||
Net change in accumulated other comprehensive loss | (60.4) | ||||
Net change in noncontrolling interests | (0.1) | ||||
Total shareholders' equity, ending balance at Mar. 31, 2015 | 1,114.6 | 89.2 | 1,401.7 | (381.6) | 5.3 |
Total shareholders' equity, beginning balance at Dec. 31, 2015 | 1,365.4 | 89.5 | 1,696.7 | 3.3 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2015 | (153.7) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2015 | (270.1) | ||||
Unrealized loss on investment securities, beginning balance at Dec. 31, 2015 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.7 | ||||
Net income attributable to ITT Corporation | 37.4 | 37.4 | |||
Dividends declared | (11.3) | ||||
Activity from stock incentive plans | 11.1 | ||||
Share repurchases | (0.2) | (6.7) | |||
Net change in postretirement benefit plans | 1.1 | 1.1 | |||
Net cumulative translation adjustment | 27.2 | ||||
Loss attributable to noncontrolling interests | 0.1 | (0.1) | |||
Dividend to noncontrolling interest shareholders | (1.9) | ||||
Change In Equity From Noncontrolling Interest Attributable To Other | 0.2 | ||||
Postretirement benefit plans, ending balance at Mar. 31, 2016 | (152.6) | ||||
Cumulative translation adjustment, ending balance at Mar. 31, 2016 | (242.9) | ||||
Unrealized loss on investment securities, ending balance at Mar. 31, 2016 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | 0.5 | ||||
Net change in retained earnings | 30.5 | ||||
Net change in accumulated other comprehensive loss | 28.3 | ||||
Net change in noncontrolling interests | (1.8) | ||||
Total shareholders' equity, ending balance at Mar. 31, 2016 | $ 1,422.9 | $ 90 | $ 1,727.2 | $ (395.8) | $ 1.5 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2016 | |
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 business, 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, 2015 ( 2015 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 2015 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09 to simplify several aspects of the accounting for employee share-based payment transactions standard, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. The guidance is effective for the Company beginning in the first quarter of 2017. The updates to the accounting standard include the following: • Excess tax benefits and deficiencies will no longer be recognized as a change in additional paid-in-capital in the equity section of the balance, instead they are to be recognized in the income statement as a tax expense or benefit. In the statement of cash flows, excess tax benefits and deficiencies will no longer be classified as a financing activity, instead they will be classified as an operating activity. • Entities will have the option to continue to reduce share-based compensation expense during the vesting period of outstanding awards for estimated future employee forfeitures or they may elect to recognize the impact of forfeitures as they actually occur. • The ASU also provides new guidance to other areas of the standard including minimum statutory tax withholding rules and the calculation of diluted common shares outstanding. The updates are to be applied using a modified retrospective approach as a cumulative adjustment to retained earnings and early adoption is permitted. We have yet to finalize the evaluation of the potential impact of this ASU on our financial statements, however we do not expect these changes to have a material impact. In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intended to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. The revised standard will require entities to recognize a liability for its lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at the present value of lease payments and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For finance leases, the leased asset is depreciated on a straight-line basis and recorded separately from the interest expense in the income statement resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. The ASU requires that assets and liabilities be presented or disclosed separately and classified appropriately as current and noncurrent. The ASU further requires additional disclosure of certain qualitative and quantitative information related to lease agreements. The new standard is effective for the Company beginning in the first quarter 2019 and early adoption is permitted. We are currently evaluating the impact of these amendments on our financial statements. In May 2014, the FASB issued ASU 2014-09 amending 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. We are currently evaluating the impact of these amendments and the transition alternatives on our financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
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 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 and specialized sealing solutions, shock absorbers and damping technologies primarily 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 March 31 2016 2015 2016 2015 2016 2015 Industrial Process $ 208.8 $ 255.6 $ 9.0 $ 20.4 4.3 % 8.0 % Motion Technologies 257.0 191.2 50.7 41.0 19.7 % 21.4 % Interconnect Solutions 72.4 77.5 2.0 4.8 2.8 % 6.2 % Control Technologies 71.9 65.8 10.4 14.3 14.5 % 21.7 % Total segment results 610.1 590.1 72.1 80.5 11.8 % 13.7 % Asbestos-related costs, net — — (12.8 ) (15.4 ) — — Eliminations / Other corporate costs (1.0 ) (1.4 ) (8.3 ) (7.2 ) — — Total Eliminations / Corporate and Other costs (1.0 ) (1.4 ) (21.1 ) (22.6 ) — — Total $ 609.1 $ 588.7 $ 51.0 $ 57.9 8.4 % 9.8 % Total Assets Capital Expenditures Depreciation & Amortization Three Months Ended March 31 2016 2015 (a) 2016 2015 2016 2015 Industrial Process $ 1,079.4 $ 1,097.5 $ 3.5 $ 6.2 $ 7.2 $ 7.6 Motion Technologies 830.7 779.8 14.2 13.3 10.1 6.9 Interconnect Solutions 312.3 303.2 1.8 7.1 3.0 2.3 Control Technologies 378.7 370.6 1.4 2.4 3.4 2.5 Corporate and Other 1,208.1 1,172.5 0.1 1.2 1.6 1.4 Total $ 3,809.2 $ 3,723.6 $ 21.0 $ 30.2 $ 25.3 $ 20.7 (a) Amounts reflect balances as of December 31, 2015 . |
RESTRUCTURING ACTIONS RESTRUCTU
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIONS | RESTRUCTURING ACTIONS The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Income Statements for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Severance costs $ 5.1 $ 8.9 Asset write-offs 0.2 — Other restructuring costs 0.2 0.4 Total restructuring costs $ 5.5 $ 9.3 By segment: Industrial Process $ 3.2 $ 8.9 Motion Technologies 1.4 — Interconnect Solutions — (0.2 ) Control Technologies 0.9 0.5 Corporate and Other — 0.1 The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Restructuring accruals - beginning balance $ 20.0 $ 21.9 Restructuring costs 5.5 9.3 Cash payments (6.5 ) (6.6 ) Asset write-offs (0.2 ) — Foreign exchange translation and other (0.1 ) (0.4 ) Restructuring accrual - ending balance $ 18.7 $ 24.2 By accrual type: Severance accrual $ 18.4 $ 22.4 Facility carrying and other costs accrual 0.3 1.8 We have initiated various restructuring activities throughout our businesses during the past two years, of which only those noted below are considered to be individually significant. Other less significant restructuring actions taken during 2016 and 2015 included various reduction in force initiatives and the consolidation of two sites within our Control Technologies segment to an existing lower cost location. Industrial Process Restructuring Actions Beginning in early 2015, we have been executing a series of restructuring actions focused on achieving efficiencies and reducing the overall cost structure of the Industrial Process segment. During the first quarter of 2016, we continued to progress on these objectives and recognized $3.2 of restructuring costs, aggregating to a total cost of $15.4 recognized related to these actions. The majority of costs recognized principally relate to severance for headcount reductions. During 2015, we recognized restructuring costs of $12.2 for these actions, with $8.9 recognized during the first quarter of 2015. The charges taken during the first quarter of 2016 are largely associated with an additional planned headcount reduction of approximately 80 employees, amounting to a total planned headcount reduction of approximately 280 employees. We will be continuing to monitor and evaluate the need for any additional restructuring actions. The following table provides a rollforward of the restructuring accruals associated with the Industrial Process restructuring actions. For the Three Months Ended March 31 2016 2015 Restructuring accruals - beginning balance $ 4.9 $ — Restructuring costs 3.2 8.9 Cash payments (3.3 ) (1.0 ) Asset write-offs (0.2 ) — Restructuring accruals - ending balance $ 4.6 $ 7.9 Interconnect Solutions Restructuring Actions In May 2015, we initiated a restructuring action designed to reduce the cost structure of the ICS segment primarily through additional headcount reductions of approximately 100 employees, for which the Company recognized costs of $6.5 during 2015. Payments related to the remaining accrual for this action are expected to be completed during 2016. The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions restructuring actions. For the Three Months Ended March 31 2016 2015 Restructuring accruals - beginning balance $ 9.4 $ 17.1 Restructuring costs — (0.2 ) Cash payments (2.6 ) (3.4 ) Foreign exchange translation — (0.2 ) Restructuring accruals - ending balance $ 6.8 $ 13.3 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three months ended March 31, 2016 and 2015 , the Company recognized income tax expense of $11.7 and $18.1 and an effective tax rate of 23.7% and 31.9% , respectively. The lower effective tax rate in 2016 is primarily due to a reduction in losses in Germany and the United Kingdom, for which we do not record a tax benefit. 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. 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 $16 due to changes in audit status, expiration of statutes of limitations and other events. In addition, the settlement of any future examinations relating to the 2011 and prior tax years 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 | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE DATA 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 months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Basic weighted average common shares outstanding 89.6 90.6 Add: Dilutive impact of outstanding equity awards 0.9 1.0 Diluted weighted average common shares outstanding 90.5 91.6 The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 because they were anti-dilutive. For the Three Months Ended March 31 2016 2015 Anti-dilutive stock options 0.6 0.3 Average exercise price $ 39.74 $ 42.90 Year(s) of expiration 2024 - 2026 2024 - 2025 In addition, 0.2 of outstanding return on invested capital (ROIC) awards were excluded from the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 respectively, as the necessary performance conditions had not yet been satisfied. |
RECEIVABLES, NET
RECEIVABLES, NET | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
RECEIVABLES, NET | RECEIVABLES, NET March 31, December 31, Trade accounts receivable $ 587.0 $ 554.0 Notes receivable 3.0 3.9 Other 33.5 43.1 Receivables, gross 623.5 601.0 Less: Allowance for doubtful accounts (16.5 ) (16.1 ) Receivables, net $ 607.0 $ 584.9 |
INVENTORIES, NET
INVENTORIES, NET | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET March 31, December 31, Finished goods $ 46.8 $ 60.9 Work in process 63.5 56.0 Raw materials 170.9 162.9 Inventoried costs related to long-term contracts 47.2 43.0 Total inventory before progress payments 328.4 322.8 Less: Progress payments (27.1 ) (30.1 ) Inventories, net $ 301.3 $ 292.7 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT AND NON-CURRENT ASSETS | OTHER CURRENT AND NON-CURRENT ASSETS March 31, December 31, Asbestos-related assets $ 74.5 $ 74.5 Short-term investments 68.5 64.9 Prepaid income taxes 30.9 14.3 Other 53.1 50.7 Other current assets $ 227.0 $ 204.4 Other employee benefit-related assets $ 93.9 $ 92.9 Environmental-related assets (a) 34.2 10.8 Capitalized software costs 28.5 28.2 Other 20.7 21.4 Other non-current assets $ 177.3 $ 153.3 (a) Environmental-related assets increased $23.4 primarily related to a settlement agreement and establishment of a Qualified Settlement Fund (QSF), which can be drawn upon to pay certain future environmental expenses associated with environmental remediation sites covered under the agreement. See Note 17 , Commitments and Contingencies, to the Consolidated Condensed Financial Statements for further information on environmental-related matters. |
PLANT, PROPERTY AND EQUIPMENT,
PLANT, PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
PLANT, PROPERTY AND EQUIPMENT, NET | PLANT, PROPERTY AND EQUIPMENT, NET March 31, December 31, Land and improvements $ 26.0 $ 25.4 Machinery and equipment 941.2 909.3 Buildings and improvements 244.5 242.0 Furniture, fixtures and office equipment 69.4 66.3 Construction work in progress 31.0 42.3 Other 6.0 6.7 Plant, property and equipment, gross 1,318.1 1,292.0 Less: Accumulated depreciation (875.1 ) (848.5 ) Plant, property and equipment, net $ 443.0 $ 443.5 Depreciation expense of $18.1 and $17.5 was recognized in the three months ended March 31, 2016 and 2015 , respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following table provides a rollforward of the carrying amount of goodwill for the three months ended March 31, 2016 by segment. Industrial Process Motion Technologies Interconnect Solutions Control Technologies Total Goodwill - December 31, 2015 $ 312.6 $ 201.0 $ 69.0 $ 195.7 $ 778.3 Adjustments to purchase price allocations — 0.8 — 0.4 1.2 Foreign currency 5.6 1.8 0.7 — 8.1 Goodwill - March 31, 2016 $ 318.2 $ 203.6 $ 69.7 $ 196.1 $ 787.6 Other Intangible Assets, Net March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 158.1 $ (49.2 ) $ 108.9 $ 157.4 $ (45.3 ) $ 112.1 Proprietary technology 53.6 (14.0 ) 39.6 54.9 (12.7 ) 42.2 Patents and other 8.8 (7.4 ) 1.4 8.6 (6.6 ) 2.0 Finite-lived intangible total 220.5 (70.6 ) 149.9 220.9 (64.6 ) 156.3 Indefinite-lived intangibles 31.3 — 31.3 30.9 — 30.9 Other intangible assets $ 251.8 $ (70.6 ) $ 181.2 $ 251.8 $ (64.6 ) $ 187.2 Amortization expense related to finite-lived intangible assets was $5.4 and $2.2 for the three months ended March 31, 2016 and 2015 , respectively. |
ACCRUED AND OTHER CURRENT LIABI
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES March 31, December 31, Compensation and other employee-related benefits $ 122.6 $ 138.6 Asbestos-related liabilities 88.1 88.0 Customer-related liabilities 38.9 38.0 Accrued income taxes and other tax-related liabilities 42.2 30.9 Environmental liabilities and other legal matters 25.0 24.0 Accrued warranty costs 21.2 21.7 Other accrued liabilities 47.3 51.5 Accrued liabilities $ 385.3 $ 392.7 Deferred income taxes and other tax-related accruals $ 44.2 $ 44.5 Environmental liabilities 68.2 72.0 Compensation and other employee-related benefits 37.9 35.6 Other (a) 64.4 37.8 Other non-current liabilities $ 214.7 $ 189.9 (a) Increase primarily driven by deferred income associated with an insurance settlement agreement and establishment of a QSF related to our environmental liability. The deferred income will be reduced as actual costs for remediation sites covered under the agreement are incurred. See Note 17 , Commitments and Contingencies, to the Consolidated Condensed Financial Statements for further information. |
DEBT Debt (Notes)
DEBT Debt (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | NOTE 13 DEBT March 31, December 31, Commercial paper $ 123.0 $ 94.5 Short-term loans 151.1 150.0 Current maturities of long-term debt and capital leases 1.1 1.2 Short-term loans and current maturities of long-term debt 275.2 245.7 Long-term debt and capital leases 2.7 2.8 Total debt and capital leases $ 277.9 $ 248.5 Commercial Paper Commercial paper outstanding was $123.0 and $94.5 , had an associated weighted average interest rate of 1.00% and 1.04% and maturity terms less than one month from the date of issuance as of March 31, 2016 and December 31, 2015 , respectively. Short-term Loans As of March 31, 2016 and December 31, 2015 , we had $151.1 and $150.0 in outstanding borrowings under our $500 revolving credit facility, respectively, with an associated weighted average interest rate of 1.69% and 1.55% , respectively. Please refer to the Liquidity section within "Item 2. Management's Discussion and Analysis," for additional information on the revolving credit facility as well as our overall funding and liquidity strategy. |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015 . 2016 2015 Three Months Ended March 31 Pension Other Total Pension Other Total Service cost $ 1.2 $ 0.2 $ 1.4 $ 1.3 $ 0.2 $ 1.5 Interest cost 3.4 1.2 4.6 3.6 1.2 4.8 Expected return on plan assets (5.0 ) (0.2 ) (5.2 ) (5.1 ) (0.2 ) (5.3 ) Amortization of prior service cost (benefit) 0.2 (1.6 ) (1.4 ) 0.2 (2.7 ) (2.5 ) Amortization of net actuarial loss 1.9 1.2 3.1 2.1 1.1 3.2 Total net periodic benefit cost $ 1.7 $ 0.8 $ 2.5 $ 2.1 $ (0.4 ) $ 1.7 We made contributions to our global postretirement plans of $3.3 and $2.6 during the three months ended March 31, 2016 and 2015 , respectively. We expect to make contributions of approximately $10 to $15 during the remainder of 2016 , 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 $1.1 and $0.5 , net of tax, during the three months ended March 31, 2016 and 2015 , 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 | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | LONG-TERM INCENTIVE EMPLOYEE COMPENSATION Our long-term incentive plan (LTIP) costs are primarily recorded within general and administrative expenses. The following table provides the components of LTIP costs for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Equity based awards $ 2.9 $ 3.1 Liability-based awards 0.5 0.2 Total share-based compensation expense $ 3.4 $ 3.3 As of March 31, 2016 , there was estimated unrecognized compensation cost of $32.3 related to unvested equity-based awards that is expected to be recognized ratably over a weighted-average period of 2.4 years, and $3.5 related to unvested liability-based awards that are expected to be recognized ratably over a weighted-average period of 2.4 years. Year-to-Date 2016 LTIP Activity The majority of our LTIP activity occurs during the first quarter of each year. During the three months ended March 31, 2016 , we granted the following LTIP awards as provided in the table below: # of Awards Granted Grant Date Fair Value Non-qualified stock options (NQOs) 0.4 $ 9.16 Restricted stock units (RSUs) 0.3 $ 33.01 Performance stock units (PSUs) 0.2 $ 33.27 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 and PSUs vest on the completion of a three-year service period. During the three months ended March 31, 2016 and 2015 , 0.3 and 0.1 NQOs were exercised resulting in proceeds of $6.1 and $2.0 , respectively. RSUs of 0.2 vested and were issued during both the three months ended March 31, 2016 and 2015 , respectively. In addition, PSUs of 0.2 were issued during the three months ended March 31, 2016 that vested on December 31, 2015. 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 2016 NQO grants. Dividend yield 1.5% Expected volatility 32.2% Expected life 6.0 years Risk-free rates 1.5% Grant date fair value $9.16 |
CAPITAL STOCK
CAPITAL STOCK | 3 Months Ended |
Mar. 31, 2016 | |
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 did not repurchase any shares of common stock under this program during the three months ended March 31, 2016 . During the three months ended March 31, 2015 we repurchased 2.0 shares of common stock for $80.0 . 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 0.2 shares and 0.1 shares for an aggregate price of $6.9 and $3.6 , during the three months ended March 31, 2016 and 2015 , respectively, in settlement of employee tax withholding obligations due upon the vesting of RSUs and PSUs. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
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 defend vigorously against all claims. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have 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 March 31, 2016 , there were 36 thousand pending claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: For the Three Months Ended March 31 (in thousands) 2016 Pending claims – Beginning 37 New claims 1 Dismissals (2 ) Pending claims – Ending 36 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 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 difficult to predict the ultimate cost of resolving all pending and unasserted asbestos claims. We believe it is possible that future events affecting the key factors and other variables within the next 10 years, as well as the cost of asbestos claims filed beyond the next 10 years, net of expected recoveries, could have a material adverse effect on our financial statements. Income Statement Charges As part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent qualitative and quantitative data available for the key inputs and assumptions, comparing the data to expectations on which the most recent annual liability and asset estimates were calculated. Based on this evaluation, the Company determined that no change in the estimate was warranted for the quarter ended March 31, 2016 other than the incremental accrual to maintain a rolling 10-year forecast period. A net asbestos charge of $15.4 was recognized in both the three months ended March 31, 2016 and 2015, to maintain the 10-year forecast period. Additionally during the first quarter of 2016, we entered into a settlement agreement with an insurer to settle responsibility for multiple insurance claims, resulting in a benefit of $2.6 . 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 $639.3 and $630.8 as of March 31, 2016 and December 31, 2015 , respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the three months ended March 31, 2016 . Liability Asset Net Balance as of December 31, 2015 $ 1,042.8 $ 412.0 $ 630.8 Asbestos provision 17.8 2.4 15.4 Settlement agreement — 2.6 (2.6 ) Net cash activity (15.5 ) (11.2 ) (4.3 ) Balance as of March 31, 2016 $ 1,045.1 $ 405.8 $ 639.3 Current portion $ 88.1 $ 74.5 Noncurrent portion $ 957.0 $ 331.3 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 for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Environmental liability - beginning balance $ 82.6 $ 89.9 Change in estimates for pre-existing accruals Continuing operations 0.7 0.2 Discontinued operations 0.5 — Net cash activity (5.1 ) (4.4 ) Foreign currency 0.1 (0.3 ) Environmental liability - ending balance $ 78.8 $ 85.4 In the fourth quarter of 2015, ITT entered into a settlement agreement with one of our insurance providers whereby the provider agreed to pay the net present value of the remaining limits of the policy amounting to approximately $34.2 . In the first quarter of 2016, the Company received $2.0 in cash and $32.2 was deposited into a QSF which can be drawn upon only to pay certain future environmental expenses associated with remediation sites covered under the policy, including sites owned by a former subsidiary of the Company. The Company recorded $23 of deferred income related to the settlement representing the excess of QSF monies over the probable liabilities associated with the covered remediation sites. In addition to the QSF asset, there is a receivable of $2.0 from other third parties for reimbursement of environmental costs, resulting in a total environmental-related asset of $34.2 as of March 31, 2016. The environmental-related asset as of December 31, 2015 was $12.8 . We are currently involved with 47 active environmental investigation and remediation sites. At March 31, 2016 , we have estimated the potential high-end liability range of environmental-related matters to be $134 . As actual costs incurred at identified sites in future periods may vary from our current estimates given the inherent uncertainties in evaluating environmental exposures, management believes it is possible that the outcome of these uncertainties may have a material adverse effect on our financial statements. Other Matters The Company is responding to a civil subpoena from the Department of Defense, Office of the Inspector General, which was issued as part of an investigation being led by the Civil Division of the U.S. Department of Justice. The subpoena and related investigation involve 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 government and is unable to estimate the timing or outcome of this matter. |
ACQUISITIONS (Notes)
ACQUISITIONS (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITIONS Wolverine Automotive Holdings 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 $298.3 , net of cash acquired, was funded through a combination of cash and borrowings from our revolving credit facility. Wolverine has approximately 500 employees globally and reported 2014 revenues of $154 , including $17 of sales to ITT. The allocation of the purchase price is based on the fair value of assets acquired, liabilities assumed and non-controlling interests in Wolverine as of October 5, 2015. Our assessment of fair value is preliminary, and may be adjusted for information that is currently not available to us, including but not limited to, the valuation of intangible assets, postretirement obligations, environmental liabilities, deferred tax matters, real estate, and residual goodwill. The purchase price allocation presented below represents the effect of recording preliminary estimates for the fair value of assets acquired, liabilities assumed, and non-controlling interests in Wolverine and related deferred income taxes. We expect to obtain the information necessary to finalize the fair value of the net assets acquired at the acquisition date during the measurement period. Changes to the preliminary estimates of the fair value of the net assets acquired during the measurement period will be recorded as adjustments to those assets and liabilities with a corresponding adjustment to goodwill. The goodwill of $162.5 , which has been assigned to the Motion Technologies segment, is not deductible for income tax purposes. Other intangibles acquired include existing customer relationships, proprietary technology, and trade names. Allocation of Purchase Price for Wolverine Cash $ 8.5 Receivables 31.6 Inventory 35.0 Plant, property and equipment 22.8 Goodwill 162.5 Other intangible assets 87.0 Other assets 3.3 Accounts payable and accrued liabilities (21.2 ) Postretirement liabilities (14.6 ) Other liabilities (8.1 ) Net assets acquired $ 306.8 Pro forma results of operations have not been presented because the acquisition was not deemed material at the acquisition date. |
DESCRIPTION OF BUSINESS AND B28
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 business, 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 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, 2015 ( 2015 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 2015 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 PRONOUNCEME29
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Recent Acconting Pronouncements [Abstract] | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Pronouncements Not Yet Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09 to simplify several aspects of the accounting for employee share-based payment transactions standard, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. The guidance is effective for the Company beginning in the first quarter of 2017. The updates to the accounting standard include the following: • Excess tax benefits and deficiencies will no longer be recognized as a change in additional paid-in-capital in the equity section of the balance, instead they are to be recognized in the income statement as a tax expense or benefit. In the statement of cash flows, excess tax benefits and deficiencies will no longer be classified as a financing activity, instead they will be classified as an operating activity. • Entities will have the option to continue to reduce share-based compensation expense during the vesting period of outstanding awards for estimated future employee forfeitures or they may elect to recognize the impact of forfeitures as they actually occur. • The ASU also provides new guidance to other areas of the standard including minimum statutory tax withholding rules and the calculation of diluted common shares outstanding. The updates are to be applied using a modified retrospective approach as a cumulative adjustment to retained earnings and early adoption is permitted. We have yet to finalize the evaluation of the potential impact of this ASU on our financial statements, however we do not expect these changes to have a material impact. In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intended to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. The revised standard will require entities to recognize a liability for its lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at the present value of lease payments and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For finance leases, the leased asset is depreciated on a straight-line basis and recorded separately from the interest expense in the income statement resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. The ASU requires that assets and liabilities be presented or disclosed separately and classified appropriately as current and noncurrent. The ASU further requires additional disclosure of certain qualitative and quantitative information related to lease agreements. The new standard is effective for the Company beginning in the first quarter 2019 and early adoption is permitted. We are currently evaluating the impact of these amendments on our financial statements. In May 2014, the FASB issued ASU 2014-09 amending 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. We are currently evaluating the impact of these amendments and the transition alternatives on our financial statements. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Revenue Operating Income (Loss) Operating Margin Three Months Ended March 31 2016 2015 2016 2015 2016 2015 Industrial Process $ 208.8 $ 255.6 $ 9.0 $ 20.4 4.3 % 8.0 % Motion Technologies 257.0 191.2 50.7 41.0 19.7 % 21.4 % Interconnect Solutions 72.4 77.5 2.0 4.8 2.8 % 6.2 % Control Technologies 71.9 65.8 10.4 14.3 14.5 % 21.7 % Total segment results 610.1 590.1 72.1 80.5 11.8 % 13.7 % Asbestos-related costs, net — — (12.8 ) (15.4 ) — — Eliminations / Other corporate costs (1.0 ) (1.4 ) (8.3 ) (7.2 ) — — Total Eliminations / Corporate and Other costs (1.0 ) (1.4 ) (21.1 ) (22.6 ) — — Total $ 609.1 $ 588.7 $ 51.0 $ 57.9 8.4 % 9.8 % Total Assets Capital Expenditures Depreciation & Amortization Three Months Ended March 31 2016 2015 (a) 2016 2015 2016 2015 Industrial Process $ 1,079.4 $ 1,097.5 $ 3.5 $ 6.2 $ 7.2 $ 7.6 Motion Technologies 830.7 779.8 14.2 13.3 10.1 6.9 Interconnect Solutions 312.3 303.2 1.8 7.1 3.0 2.3 Control Technologies 378.7 370.6 1.4 2.4 3.4 2.5 Corporate and Other 1,208.1 1,172.5 0.1 1.2 1.6 1.4 Total $ 3,809.2 $ 3,723.6 $ 21.0 $ 30.2 $ 25.3 $ 20.7 |
RESTRUCTURING ACTIONS RESTRUC31
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Income Statements for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Severance costs $ 5.1 $ 8.9 Asset write-offs 0.2 — Other restructuring costs 0.2 0.4 Total restructuring costs $ 5.5 $ 9.3 By segment: Industrial Process $ 3.2 $ 8.9 Motion Technologies 1.4 — Interconnect Solutions — (0.2 ) Control Technologies 0.9 0.5 Corporate and Other — 0.1 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Restructuring accruals - beginning balance $ 20.0 $ 21.9 Restructuring costs 5.5 9.3 Cash payments (6.5 ) (6.6 ) Asset write-offs (0.2 ) — Foreign exchange translation and other (0.1 ) (0.4 ) Restructuring accrual - ending balance $ 18.7 $ 24.2 By accrual type: Severance accrual $ 18.4 $ 22.4 Facility carrying and other costs accrual 0.3 1.8 |
2015 Interconnect Solutions Restructuring Actions [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Interconnect Solutions Restructuring Actions In May 2015, we initiated a restructuring action designed to reduce the cost structure of the ICS segment primarily through additional headcount reductions of approximately 100 employees, for which the Company recognized costs of $6.5 during 2015. Payments related to the remaining accrual for this action are expected to be completed during 2016. The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions restructuring actions. For the Three Months Ended March 31 2016 2015 Restructuring accruals - beginning balance $ 9.4 $ 17.1 Restructuring costs — (0.2 ) Cash payments (2.6 ) (3.4 ) Foreign exchange translation — (0.2 ) Restructuring accruals - ending balance $ 6.8 $ 13.3 |
2015 Industrial Process Restructuring Action [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Industrial Process Restructuring Actions Beginning in early 2015, we have been executing a series of restructuring actions focused on achieving efficiencies and reducing the overall cost structure of the Industrial Process segment. During the first quarter of 2016, we continued to progress on these objectives and recognized $3.2 of restructuring costs, aggregating to a total cost of $15.4 recognized related to these actions. The majority of costs recognized principally relate to severance for headcount reductions. During 2015, we recognized restructuring costs of $12.2 for these actions, with $8.9 recognized during the first quarter of 2015. The charges taken during the first quarter of 2016 are largely associated with an additional planned headcount reduction of approximately 80 employees, amounting to a total planned headcount reduction of approximately 280 employees. We will be continuing to monitor and evaluate the need for any additional restructuring actions. The following table provides a rollforward of the restructuring accruals associated with the Industrial Process restructuring actions. For the Three Months Ended March 31 2016 2015 Restructuring accruals - beginning balance $ 4.9 $ — Restructuring costs 3.2 8.9 Cash payments (3.3 ) (1.0 ) Asset write-offs (0.2 ) — Restructuring accruals - ending balance $ 4.6 $ 7.9 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Basic weighted average common shares outstanding 89.6 90.6 Add: Dilutive impact of outstanding equity awards 0.9 1.0 Diluted weighted average common shares outstanding 90.5 91.6 |
Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings | The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 because they were anti-dilutive. For the Three Months Ended March 31 2016 2015 Anti-dilutive stock options 0.6 0.3 Average exercise price $ 39.74 $ 42.90 Year(s) of expiration 2024 - 2026 2024 - 2025 |
RECEIVABLES, NET (Tables)
RECEIVABLES, NET (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
RECEIVABLES, NET | March 31, December 31, Trade accounts receivable $ 587.0 $ 554.0 Notes receivable 3.0 3.9 Other 33.5 43.1 Receivables, gross 623.5 601.0 Less: Allowance for doubtful accounts (16.5 ) (16.1 ) Receivables, net $ 607.0 $ 584.9 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | March 31, December 31, Finished goods $ 46.8 $ 60.9 Work in process 63.5 56.0 Raw materials 170.9 162.9 Inventoried costs related to long-term contracts 47.2 43.0 Total inventory before progress payments 328.4 322.8 Less: Progress payments (27.1 ) (30.1 ) Inventories, net $ 301.3 $ 292.7 |
OTHER CURRENT AND NON-CURRENT35
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current and Non Current Assets | March 31, December 31, Asbestos-related assets $ 74.5 $ 74.5 Short-term investments 68.5 64.9 Prepaid income taxes 30.9 14.3 Other 53.1 50.7 Other current assets $ 227.0 $ 204.4 Other employee benefit-related assets $ 93.9 $ 92.9 Environmental-related assets (a) 34.2 10.8 Capitalized software costs 28.5 28.2 Other 20.7 21.4 Other non-current assets $ 177.3 $ 153.3 |
PLANT, PROPERTY AND EQUIPMENT36
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Plant, Property and Equipment, Net | March 31, December 31, Land and improvements $ 26.0 $ 25.4 Machinery and equipment 941.2 909.3 Buildings and improvements 244.5 242.0 Furniture, fixtures and office equipment 69.4 66.3 Construction work in progress 31.0 42.3 Other 6.0 6.7 Plant, property and equipment, gross 1,318.1 1,292.0 Less: Accumulated depreciation (875.1 ) (848.5 ) Plant, property and equipment, net $ 443.0 $ 443.5 |
GOODWILL AND OTHER INTANGIBLE37
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | Goodwill The following table provides a rollforward of the carrying amount of goodwill for the three months ended March 31, 2016 by segment. Industrial Process Motion Technologies Interconnect Solutions Control Technologies Total Goodwill - December 31, 2015 $ 312.6 $ 201.0 $ 69.0 $ 195.7 $ 778.3 Adjustments to purchase price allocations — 0.8 — 0.4 1.2 Foreign currency 5.6 1.8 0.7 — 8.1 Goodwill - March 31, 2016 $ 318.2 $ 203.6 $ 69.7 $ 196.1 $ 787.6 |
Other Intangible Assets | Other Intangible Assets, Net March 31, 2016 December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 158.1 $ (49.2 ) $ 108.9 $ 157.4 $ (45.3 ) $ 112.1 Proprietary technology 53.6 (14.0 ) 39.6 54.9 (12.7 ) 42.2 Patents and other 8.8 (7.4 ) 1.4 8.6 (6.6 ) 2.0 Finite-lived intangible total 220.5 (70.6 ) 149.9 220.9 (64.6 ) 156.3 Indefinite-lived intangibles 31.3 — 31.3 30.9 — 30.9 Other intangible assets $ 251.8 $ (70.6 ) $ 181.2 $ 251.8 $ (64.6 ) $ 187.2 |
ACCRUED AND OTHER CURRENT LIA38
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Non-Current Liabilities | March 31, December 31, Compensation and other employee-related benefits $ 122.6 $ 138.6 Asbestos-related liabilities 88.1 88.0 Customer-related liabilities 38.9 38.0 Accrued income taxes and other tax-related liabilities 42.2 30.9 Environmental liabilities and other legal matters 25.0 24.0 Accrued warranty costs 21.2 21.7 Other accrued liabilities 47.3 51.5 Accrued liabilities $ 385.3 $ 392.7 Deferred income taxes and other tax-related accruals $ 44.2 $ 44.5 Environmental liabilities 68.2 72.0 Compensation and other employee-related benefits 37.9 35.6 Other (a) 64.4 37.8 Other non-current liabilities $ 214.7 $ 189.9 |
DEBT Debt (Tables)
DEBT Debt (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt [Line Items] | |
Schedule of Debt [Table Text Block] | March 31, December 31, Commercial paper $ 123.0 $ 94.5 Short-term loans 151.1 150.0 Current maturities of long-term debt and capital leases 1.1 1.2 Short-term loans and current maturities of long-term debt 275.2 245.7 Long-term debt and capital leases 2.7 2.8 Total debt and capital leases $ 277.9 $ 248.5 |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015 . 2016 2015 Three Months Ended March 31 Pension Other Total Pension Other Total Service cost $ 1.2 $ 0.2 $ 1.4 $ 1.3 $ 0.2 $ 1.5 Interest cost 3.4 1.2 4.6 3.6 1.2 4.8 Expected return on plan assets (5.0 ) (0.2 ) (5.2 ) (5.1 ) (0.2 ) (5.3 ) Amortization of prior service cost (benefit) 0.2 (1.6 ) (1.4 ) 0.2 (2.7 ) (2.5 ) Amortization of net actuarial loss 1.9 1.2 3.1 2.1 1.1 3.2 Total net periodic benefit cost $ 1.7 $ 0.8 $ 2.5 $ 2.1 $ (0.4 ) $ 1.7 |
LONG-TERM INCENTIVE EMPLOYEE 41
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Employee Compensation Costs | The following table provides the components of LTIP costs for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Equity based awards $ 2.9 $ 3.1 Liability-based awards 0.5 0.2 Total share-based compensation expense $ 3.4 $ 3.3 |
Summary of Long-Term Incentive Plan Award Grants during year | # of Awards Granted Grant Date Fair Value Non-qualified stock options (NQOs) 0.4 $ 9.16 Restricted stock units (RSUs) 0.3 $ 33.01 Performance stock units (PSUs) 0.2 $ 33.27 |
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 2016 NQO grants. Dividend yield 1.5% Expected volatility 32.2% Expected life 6.0 years Risk-free rates 1.5% Grant date fair value $9.16 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Liability Contingencies [Table Text Block] | As of March 31, 2016 , there were 36 thousand pending claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: For the Three Months Ended March 31 (in thousands) 2016 Pending claims – Beginning 37 New claims 1 Dismissals (2 ) Pending claims – Ending 36 |
Net Asbestos Charges [Table Text Block] | |
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 $639.3 and $630.8 as of March 31, 2016 and December 31, 2015 , respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the three months ended March 31, 2016 . Liability Asset Net Balance as of December 31, 2015 $ 1,042.8 $ 412.0 $ 630.8 Asbestos provision 17.8 2.4 15.4 Settlement agreement — 2.6 (2.6 ) Net cash activity (15.5 ) (11.2 ) (4.3 ) Balance as of March 31, 2016 $ 1,045.1 $ 405.8 $ 639.3 Current portion $ 88.1 $ 74.5 Noncurrent portion $ 957.0 $ 331.3 |
Rollforward of Environmental Liability and Related Assets | The following table provides a rollforward of the estimated environmental liability for the three months ended March 31, 2016 and 2015 . For the Three Months Ended March 31 2016 2015 Environmental liability - beginning balance $ 82.6 $ 89.9 Change in estimates for pre-existing accruals Continuing operations 0.7 0.2 Discontinued operations 0.5 — Net cash activity (5.1 ) (4.4 ) Foreign currency 0.1 (0.3 ) Environmental liability - ending balance $ 78.8 $ 85.4 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Wolverine Advanced Materials Acquisition [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Allocation of Purchase Price for Wolverine Cash $ 8.5 Receivables 31.6 Inventory 35.0 Plant, property and equipment 22.8 Goodwill 162.5 Other intangible assets 87.0 Other assets 3.3 Accounts payable and accrued liabilities (21.2 ) Postretirement liabilities (14.6 ) Other liabilities (8.1 ) Net assets acquired $ 306.8 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Revenue (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Segment | Mar. 31, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | Segment | 4 | |
Revenue | $ 609.1 | $ 588.7 |
Operating Income | $ 51 | $ 57.9 |
Operating Margin | 8.40% | 9.80% |
Total Segment Results [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 610.1 | $ 590.1 |
Operating Income | $ 72.1 | $ 80.5 |
Operating Margin | 11.80% | 13.70% |
Industrial Process [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 208.8 | $ 255.6 |
Operating Income | $ 9 | $ 20.4 |
Operating Margin | 4.30% | 8.00% |
Motion Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 257 | $ 191.2 |
Operating Income | $ 50.7 | $ 41 |
Operating Margin | 19.70% | 21.40% |
Interconnect Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 72.4 | $ 77.5 |
Operating Income | $ 2 | $ 4.8 |
Operating Margin | 2.80% | 6.20% |
Control Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 71.9 | $ 65.8 |
Operating Income | $ 10.4 | $ 14.3 |
Operating Margin | 14.50% | 21.70% |
Total Eliminations / Corporate and Other costs | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ (1) | $ (1.4) |
Operating Income | $ (21.1) | $ (22.6) |
Operating Margin | 0.00% | 0.00% |
Asbestos-related costs, net | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0 |
Operating Income | $ (12.8) | $ (15.4) |
Operating Margin | 0.00% | 0.00% |
Eliminations / Other corporate costs | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ (1) | $ (1.4) |
Operating Income | $ (8.3) | $ (7.2) |
Operating Margin | 0.00% | 0.00% |
SEGMENT INFORMATION - Schedul45
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | [1] | |
Segment Reporting Information [Line Items] | ||||
Total Assets | $ 3,809.2 | $ 3,723.6 | ||
Capital Expenditures | 21 | $ 30.2 | ||
Depreciation & Amortization | 25.3 | 20.7 | ||
Industrial Process [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,079.4 | 1,097.5 | ||
Capital Expenditures | 3.5 | 6.2 | ||
Depreciation & Amortization | 7.2 | 7.6 | ||
Motion Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 830.7 | 779.8 | ||
Capital Expenditures | 14.2 | 13.3 | ||
Depreciation & Amortization | 10.1 | 6.9 | ||
Interconnect Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 312.3 | 303.2 | ||
Capital Expenditures | 1.8 | 7.1 | ||
Depreciation & Amortization | 3 | 2.3 | ||
Control Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 378.7 | 370.6 | ||
Capital Expenditures | 1.4 | 2.4 | ||
Depreciation & Amortization | 3.4 | 2.5 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,208.1 | $ 1,172.5 | ||
Capital Expenditures | 0.1 | 1.2 | ||
Depreciation & Amortization | $ 1.6 | $ 1.4 | ||
[1] | Amounts reflect balances as of December 31, 2015. |
RESTRUCTURING ACTIONS Restruc46
RESTRUCTURING ACTIONS Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 5.5 | $ 9.3 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 5.1 | 8.9 |
Restructuring Asset Write-Off [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.2 | 0 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.2 | 0.4 |
Industrial Process [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 3.2 | 8.9 |
Motion Technologies [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1.4 | 0 |
Interconnect Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0 | (0.2) |
Control Technologies [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.9 | 0.5 |
Corporate and Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0 | $ 0.1 |
RESTRUCTURING ACTIONS Restruc47
RESTRUCTURING ACTIONS Restructuring Accrual Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 15 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | $ 20 | $ 21.9 | $ 21.9 | $ 21.9 |
Restructuring costs | 5.5 | 9.3 | ||
Payments for Restructuring | (6.5) | (6.6) | ||
Asset Write-Offs | (0.2) | 0 | ||
Restructuring Reserve, Translation Adjustment | (0.1) | (0.4) | ||
Restructuring Reserve - Ending Balance | 18.7 | 24.2 | 20 | 18.7 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 5.1 | 8.9 | ||
Restructuring Reserve - Ending Balance | 18.4 | 22.4 | 18.4 | |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.2 | 0.4 | ||
Restructuring Reserve - Ending Balance | 0.3 | 1.8 | 0.3 | |
Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 3.2 | 8.9 | ||
Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | (0.2) | ||
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 4.9 | 0 | 0 | 0 |
Restructuring costs | 3.2 | 8.9 | 12.2 | 15.4 |
Payments for Restructuring | (3.3) | (1) | ||
Asset Write-Offs | (0.2) | 0 | ||
Restructuring Reserve - Ending Balance | 4.6 | 7.9 | 4.9 | 4.6 |
2015 Interconnect Solutions Restructuring Actions [Member] | Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 9.4 | 17.1 | 17.1 | 17.1 |
Restructuring costs | 0 | (0.2) | 6.5 | |
Payments for Restructuring | (2.6) | (3.4) | ||
Restructuring Reserve, Translation Adjustment | 0 | 0.2 | ||
Restructuring Reserve - Ending Balance | $ 6.8 | $ 13.3 | $ 9.4 | $ 6.8 |
RESTRUCTURING ACTIONS Restruc48
RESTRUCTURING ACTIONS Restructuring Textuals (Details) $ in Millions | 3 Months Ended | 12 Months Ended | 15 Months Ended | ||
Mar. 31, 2016USD ($)Employees | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)Employees | Mar. 31, 2016USD ($)Employees | Dec. 31, 2014USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | $ 6.5 | $ 6.6 | |||
Accrued restructuring | 18.7 | 24.2 | $ 20 | $ 18.7 | $ 21.9 |
Restructuring costs | 5.5 | 9.3 | |||
Industrial Process [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3.2 | 8.9 | |||
Interconnect Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | (0.2) | |||
2015 Interconnect Solutions Restructuring Actions [Member] | Interconnect Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 100 | ||||
Payments for Restructuring | 2.6 | 3.4 | |||
Accrued restructuring | 6.8 | 13.3 | $ 9.4 | $ 6.8 | 17.1 |
Restructuring costs | $ 0 | (0.2) | 6.5 | ||
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 80 | 280 | |||
Payments for Restructuring | $ 3.3 | 1 | |||
Accrued restructuring | 4.6 | 7.9 | 4.9 | $ 4.6 | $ 0 |
Restructuring costs | $ 3.2 | $ 8.9 | $ 12.2 | $ 15.4 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 11.7 | $ 18.1 |
Effective income tax rate | 23.70% | 31.90% |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 16 |
EARNINGS PER SHARE DATA - Basic
EARNINGS PER SHARE DATA - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares – basic | 89.6 | 90.6 |
Add: Dilutive impact of outstanding equity awards | 0.9 | 1 |
Diluted weighted average common shares outstanding | 90.5 | 91.6 |
EARNINGS PER SHARE DATA - Numbe
EARNINGS PER SHARE DATA - Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings (Loss) (Detail) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of ROIC Awards Excluded from Diluted Shares Outstanding | 0.2 | 0.2 |
Anti-dilutive stock options | 0.6 | 0.3 |
Average exercise price | $ 39.74 | $ 42.90 |
Minimum [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Years of expiration | 2,024 | 2,024 |
Maximum [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Years of expiration | 2,026 | 2,025 |
RECEIVABLES, NET - (Detail)
RECEIVABLES, NET - (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 587 | $ 554 |
Notes receivable | 3 | 3.9 |
Other | 33.5 | 43.1 |
Receivables, gross | 623.5 | 601 |
Less: Allowance for doubtful accounts | (16.5) | (16.1) |
Receivables, net | $ 607 | $ 584.9 |
INVENTORIES, NET - Components o
INVENTORIES, NET - Components of Inventories, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 46.8 | $ 60.9 |
Work in process | 63.5 | 56 |
Raw materials | 170.9 | 162.9 |
Inventoried costs related to long-term contracts | 47.2 | 43 |
Total inventory before progress payments | 328.4 | 322.8 |
Less: Progress payments | (27.1) | (30.1) |
Inventories, net | $ 301.3 | $ 292.7 |
OTHER CURRENT AND NON-CURRENT54
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Asbestos-related assets | $ 74.5 | $ 74.5 | |
Short-term investments | 68.5 | 64.9 | |
Prepaid income taxes | 30.9 | 14.3 | |
Other | 53.1 | 50.7 | |
Other current assets | 227 | 204.4 | |
Other employee benefit-related assets | 93.9 | 92.9 | |
Environmental-related assets(a) | [1] | 34.2 | 10.8 |
Capitalized software costs | 28.5 | 28.2 | |
Other | 20.7 | 21.4 | |
Other non-current assets | $ 177.3 | $ 153.3 | |
[1] | (a)Environmental-related assets increased $23.4 primarily related to a settlement agreement and establishment of a Qualified Settlement Fund (QSF), which can be drawn upon to pay certain future environmental expenses associated with environmental remediation sites covered under the agreement. See Note 17, Commitments and Contingencies, to the Consolidated Condensed Financial Statements for further information on environmental-related matters. |
PLANT, PROPERTY AND EQUIPMENT55
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 26 | $ 25.4 |
Machinery and equipment | 941.2 | 909.3 |
Buildings and improvements | 244.5 | 242 |
Furniture, fixtures and office equipment | 69.4 | 66.3 |
Construction work in progress | 31 | 42.3 |
Other | 6 | 6.7 |
Plant, property and equipment, gross | 1,318.1 | 1,292 |
Less: Accumulated depreciation | (875.1) | (848.5) |
Plant, property and equipment, net | $ 443 | $ 443.5 |
PLANT, PROPERTY AND EQUIPMENT56
PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 18.1 | $ 17.5 |
GOODWILL AND OTHER INTANGIBLE57
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | $ 778.3 |
Adjustments to Purchase Price Allocations | 1.2 |
Foreign currency | 8.1 |
Goodwill - Ending Balance | 787.6 |
Industrial Process [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 312.6 |
Adjustments to Purchase Price Allocations | 0 |
Foreign currency | 5.6 |
Goodwill - Ending Balance | 318.2 |
Motion Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 201 |
Adjustments to Purchase Price Allocations | 0.8 |
Foreign currency | 1.8 |
Goodwill - Ending Balance | 203.6 |
Interconnect Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 69 |
Adjustments to Purchase Price Allocations | 0 |
Foreign currency | 0.7 |
Goodwill - Ending Balance | 69.7 |
Control Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 195.7 |
Adjustments to Purchase Price Allocations | 0.4 |
Foreign currency | 0 |
Goodwill - Ending Balance | $ 196.1 |
GOODWILL AND OTHER INTANGIBLE58
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Other Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 220.5 | $ 220.9 | |
Indefinite-lived intangible assets, Gross/Net Carrying Amount | 31.3 | 30.9 | |
Other Intangible Assets, Gross Carrying Amount | 251.8 | 251.8 | |
Accumulated Amortization | (70.6) | (64.6) | |
Finite-live intangible asset, net of accumulated amortization | 149.9 | 156.3 | |
Other intangible assets, net | 181.2 | 187.2 | |
Amortization of Intangible Assets | 5.4 | $ 2.2 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Customer Relationships, Gross Carrying Amount | 158.1 | 157.4 | |
Accumulated Amortization | (49.2) | (45.3) | |
Finite-live intangible asset, net of accumulated amortization | 108.9 | 112.1 | |
Proprietary Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Proprietary Technology, Gross Carrying Amount | 53.6 | 54.9 | |
Accumulated Amortization | (14) | (12.7) | |
Finite-live intangible asset, net of accumulated amortization | 39.6 | 42.2 | |
Patents and other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Patents and Other, Gross Carrying Amount | 8.8 | 8.6 | |
Accumulated Amortization | (7.4) | (6.6) | |
Finite-live intangible asset, net of accumulated amortization | $ 1.4 | $ 2 |
ACCRUED AND OTHER CURRENT LIA59
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Payables and Accruals [Abstract] | ||
Compensation and other employee-related benefits | $ 122.6 | $ 138.6 |
Asbestos-related liabilities | 88.1 | 88 |
Customer-related liabilities | 38.9 | 38 |
Accrued income taxes and other tax-related liabilities | 42.2 | 30.9 |
Environmental liabilities and other legal matters | 25 | 24 |
Accrued warranty costs | 21.2 | 21.7 |
Other accrued liabilities | 47.3 | 51.5 |
Accrued liabilities | 385.3 | 392.7 |
Deferred income taxes and other tax-related accruals | 44.2 | 44.5 |
Environmental liabilities | 68.2 | 72 |
Compensation and other employee-related benefits | 37.9 | 35.6 |
Other(a) | 64.4 | 37.8 |
Other non-current liabilities | $ 214.7 | $ 189.9 |
DEBT Debt (Details)
DEBT Debt (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Debt [Line Items] | ||
Commercial paper | $ 123 | $ 94.5 |
Short-term loans | 151.1 | 150 |
Current maturities of long-term debt and capital leases | 1.1 | 1.2 |
Short-term loans and current maturities of long-term debt | 275.2 | 245.7 |
Long-term debt and capital leases | 2.7 | 2.8 |
Total debt and capital leases | $ 277.9 | $ 248.5 |
Commercial Paper [Member] | ||
Debt [Line Items] | ||
Weighted Average Interest Rate | 1.00% | 1.04% |
Line of Credit [Member] | ||
Debt [Line Items] | ||
Weighted Average Interest Rate | 1.69% | 1.55% |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1.4 | $ 1.5 |
Interest cost | 4.6 | 4.8 |
Expected return on plan assets | (5.2) | (5.3) |
Amortization of prior service cost (benefit) | (1.4) | (2.5) |
Amortization of net actuarial loss | 3.1 | 3.2 |
Total net periodic benefit cost | 2.5 | 1.7 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1.2 | 1.3 |
Interest cost | 3.4 | 3.6 |
Expected return on plan assets | (5) | (5.1) |
Amortization of prior service cost (benefit) | 0.2 | 0.2 |
Amortization of net actuarial loss | 1.9 | 2.1 |
Total net periodic benefit cost | 1.7 | 2.1 |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.2 | 0.2 |
Interest cost | 1.2 | 1.2 |
Expected return on plan assets | (0.2) | (0.2) |
Amortization of prior service cost (benefit) | (1.6) | (2.7) |
Amortization of net actuarial loss | 1.2 | 1.1 |
Total net periodic benefit cost | $ 0.8 | $ (0.4) |
POSTRETIREMENT BENEFIT PLANS Po
POSTRETIREMENT BENEFIT PLANS Postretirement Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Defined Benefit Plan, Contributions by Employer | $ 3.3 | $ 2.6 |
Reclassification of Postretirement Costs from AOCI, Net of Tax | 1.1 | $ 0.5 |
Minimum [Member] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 10 | |
Maximum [Member] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 15 |
LONG-TERM INCENTIVE EMPLOYEE 63
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense, equity-based awards | $ 2.9 | $ 3.1 |
Share-based compensation expense, liability-based awards | 0.5 | 0.2 |
Total share-based compensation expense in operating income (loss) | $ 3.4 | $ 3.3 |
LONG-TERM INCENTIVE EMPLOYEE 64
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | 0.1 |
Proceeds from the exercise of stock options | $ 6.1 | $ 2 |
Restricted stock vested during period | 0.2 | 0.2 |
Equity Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost not yet recognized | $ 32.3 | |
Unrecognized compensation cost weighted-average period | 2 years 4 months 10 days | |
Liability Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost not yet recognized | $ 3.5 | |
Unrecognized compensation cost weighted-average period | 2 years 4 months 10 days | |
Performance Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vested during period | 0.2 |
LONG-TERM INCENTIVE EMPLOYEE 65
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) shares in Millions | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant Date Fair Value | $ 9.16 |
NQOs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.4 |
Grant Date Fair Value | $ 9.16 |
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 | $ 33.01 |
PSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.2 |
Grant Date Fair Value | $ 33.27 |
LONG-TERM INCENTIVE EMPLOYEE 66
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Weighted Average Assumptions (Detail) | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Dividend yield | 1.50% |
Expected volatility | 32.20% |
Expected life (in years) | 6 years 13 days |
Risk-free rates | 1.50% |
Grant Date Fair Value | $ 9.16 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 113 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | |
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program | $ 1,000 | $ 1,000 | |
Repurchase of shares of common stock | 2 | ||
Aggregate cost of repurchase | $ 80 | ||
Number of shares repurchased under settlement of employee tax withholding obligations | 0.2 | 0.1 | |
Shares repurchased aggregate value under settlement of employee tax withholding obligations | $ 6.9 | $ 3.6 | |
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 in Thousands | 3 Months Ended |
Mar. 31, 2016Claim | |
Asbestos Claims [Rollforward] | |
Pending claims – Beginning | 37 |
New claims | 1 |
Dismissals | (2) |
Pending claims – Ending | 36 |
Active [Member] | |
Asbestos Claims [Rollforward] | |
Pending claims – Ending | 36 |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES Asbestos Related Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Asbestos Related Contingencies [Line Items] | ||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 15.4 | |
Gain From Asbestos Insurance Settlement Agreement | (2.6) | |
Asbestos-related (benefit) costs, net | 12.8 | $ 15.4 |
Liability [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 17.8 | |
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 | (2.4) | |
Gain From Asbestos Insurance Settlement Agreement | $ (2.6) |
COMMITMENTS AND CONTINGENCIES70
COMMITMENTS AND CONTINGENCIES Roll Forward of Asbestos Liability and Related Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Net Asbestos Liability Rollforward [Line Items] | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | $ (630.8) | |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | (15.4) | |
Gain From Asbestos Insurance Settlement Agreement | 2.6 | |
Increase Decrease Net Cash Activity | 4.3 | |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | (639.3) | |
Asbestos-related liabilities Current | 88.1 | $ 88 |
Asbestos-related liabilities Non-Current | 957 | 954.8 |
Asbestos-related assets Current | 74.5 | 74.5 |
Asbestos-related assets Non-Current | 331.3 | $ 337.5 |
Liability [Member] | ||
Net Asbestos Liability Rollforward [Line Items] | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | (1,042.8) | |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | (17.8) | |
Gain From Asbestos Insurance Settlement Agreement | 0 | |
Increase Decrease Net Cash Activity | 15.5 | |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | (1,045.1) | |
Assets [Member] | ||
Net Asbestos Liability Rollforward [Line Items] | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | 412 | |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 2.4 | |
Gain From Asbestos Insurance Settlement Agreement | 2.6 | |
Increase Decrease Net Cash Activity | (11.2) | |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | $ 405.8 |
COMMITMENTS AND CONTINGENCIES71
COMMITMENTS AND CONTINGENCIES Asbestos Matters Textuals (Details) Claim in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($)Claim | |
Asbestos Related Contingencies [Line Items] | ||
Asbestos Liability Measurement Periods for Claims Pending and Estimated to be Filed | 10 years | |
Gain From Asbestos Insurance Settlement Agreement | $ 2.6 | |
Asbestos Liability And Related Assets Net Current And Noncurrent | 639.3 | $ 630.8 |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 15.4 | |
Asbestos Issue [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Pending Asbestos Claims | Claim | 36 | 37 |
Asbestos Issue [Member] | Active [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Pending Asbestos Claims | Claim | 36 | |
Liability [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Gain From Asbestos Insurance Settlement Agreement | $ 0 | |
Asbestos Liability And Related Assets Net Current And Noncurrent | 1,045.1 | $ 1,042.8 |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 17.8 | |
Assets [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Gain From Asbestos Insurance Settlement Agreement | 2.6 | |
Asbestos Liability And Related Assets Net Current And Noncurrent | (405.8) | $ (412) |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ (2.4) |
COMMITMENTS AND CONTINGENCIES72
COMMITMENTS AND CONTINGENCIES Rollforward of Environmental Liability and Related Assets (Detail) - Liability [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Loss Contingency Accrual [Roll Forward] | ||
Environmental liability - Beginning balance | $ 82.6 | $ 89.9 |
Net Cash Activity | (5.1) | (4.4) |
Foreign exchange translation | 0.1 | (0.3) |
Environmental liability - Ending balance | 78.8 | 85.4 |
Continuing Operations [Member] | ||
Loss Contingency Accrual [Roll Forward] | ||
Changes In Pre-Existing Environmental Accruals | 0.7 | 0.2 |
Discontinued Operations [Member] | ||
Loss Contingency Accrual [Roll Forward] | ||
Changes In Pre-Existing Environmental Accruals | $ 0.5 | $ 0 |
COMMITMENTS AND CONTINGENCIES73
COMMITMENTS AND CONTINGENCIES Range of Environmental Liability and Number of Active Sites (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)site | Dec. 31, 2015USD ($) | |
Site Contingency [Line Items] | ||
Environmental-Related Receivable from Other Third Parties | $ 2 | |
Recorded Third-Party Environmental Recoveries Receivable | 34.2 | $ 12.8 |
Environmental Related Matters [Member] | ||
Site Contingency [Line Items] | ||
Settlement Agreement with Insurer, Total Amount Received | 34.2 | |
Settlement Agreement with Insurer, Amount Received in Cash | 2 | |
Settlement Agreement with Insurer, Amount Deposited in Qualified Settlement Fund | 32.2 | |
Settlement Agreement with Insurer, Deferred Income | $ 23 | |
Number Of Active Environmental Investigation And Remediation Sites | site | 47 | |
Loss Contingency, Range of Possible Loss, Maximum | $ 134 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Oct. 05, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 787.6 | $ 778.3 | |
Wolverine Advanced Materials Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 8.5 | ||
Receivables | 31.6 | ||
Inventory | 35 | ||
Plant, property and equipment | 22.8 | ||
Goodwill | 162.5 | ||
Other intangible assets | 87 | ||
Other assets | 3.3 | ||
Accounts payable and accrued liabilities | (21.2) | ||
Postretirement liabilities | 14.6 | ||
Other liabilities | (8.1) | ||
Net assets acquired | $ 306.8 |
ACQUISITIONS Acquisitions Textu
ACQUISITIONS Acquisitions Textuals (Details) $ in Millions | Oct. 05, 2015USD ($) | Mar. 31, 2016USD ($)Employees | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0.2 | $ 0 | |||
Goodwill | $ 787.6 | $ 778.3 | |||
Wolverine Advanced Materials Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 5, 2015 | ||||
Business Acquisition, Name of Acquired Entity | Wolverine Automotive Holdings Inc. | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 298.3 | ||||
Number of Employees at Acquired Entity | Employees | 500 | ||||
Revenue of Acquired Entity for Last Annual Period | $ 154 | ||||
Revenue of Acquired Entity from ITT | $ 17 | ||||
Goodwill | $ 162.5 |