Document and Entity Information
Document and Entity Information - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 14, 2018 | Jun. 30, 2017 | |
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | ITT INC. | ||
Trading Symbol | ITT | ||
Entity Central Index Key | 216,228 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 88.2 | ||
Entity Public Float | $ 3.5 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Revenue | $ 2,585.3 | $ 2,405.4 | $ 2,485.6 |
Costs of revenue | 1,768.1 | 1,647.2 | 1,676.5 |
Gross profit | 817.2 | 758.2 | 809.1 |
General and administrative expenses | 264 | 274.1 | 258.3 |
Sales and marketing expenses | 169.7 | 170 | 183.2 |
Research and development expenses | 93.7 | 80.8 | 78.9 |
Asbestos-related benefit, net | (19.9) | (25.6) | (91.4) |
Operating income | 309.7 | 258.9 | 380.1 |
Interest and non-operating expenses (income), net | 0.3 | 0.5 | (2.2) |
Income from continuing operations before income tax | 309.4 | 258.4 | 382.3 |
Income tax expense | 194.6 | 76 | 70.1 |
Income from continuing operations | 114.8 | 182.4 | 312.2 |
(Loss) income from discontinued operations, including tax benefit (expense) of $1.9, $(0.3), and $24.5, respectively | (1.5) | 4.2 | 39.4 |
Net income | 113.3 | 186.6 | 351.6 |
Less: (Loss) income attributable to noncontrolling interests | (0.2) | 0.5 | (0.2) |
Net income attributable to ITT Inc. | 113.5 | 186.1 | 351.8 |
Amounts attributable to ITT Inc.: | |||
Income from continuing operations, net of tax | 115 | 181.9 | 312.4 |
(Loss) income from discontinued operations, including tax benefit (expense) of $1.9, $(0.3), and $24.5, respectively | (1.5) | 4.2 | 39.4 |
Net income attributable to ITT Inc. | $ 113.5 | $ 186.1 | $ 351.8 |
Basic earnings per share: | |||
Continuing operations | $ 1.30 | $ 2.04 | $ 3.48 |
Discontinued operations | (0.01) | 0.05 | 0.44 |
Net income | 1.29 | 2.09 | 3.92 |
Diluted earnings per share: | |||
Continuing operations | 1.29 | 2.02 | 3.44 |
Discontinued operations | (0.01) | 0.05 | 0.44 |
Net income | $ 1.28 | $ 2.07 | $ 3.88 |
Weighted average common shares – basic | 88.3 | 89.2 | 89.8 |
Weighted average common shares – diluted | 89 | 89.9 | 90.7 |
Cash dividends declared per common share | $ 0.512 | $ 0.496 | $ 0.4732 |
CONSOLIDATED STATEMENTS OF OPE3
CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS (PARENTHETICAL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax (Expense) Benefit from Discontinued Operations [Abstract] | |||
Tax Benefit (expense) on Discontinued Operations | $ 1.9 | $ (0.3) | $ 24.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 113.3 | $ 186.6 | $ 351.6 |
Other comprehensive income (loss): | |||
Net foreign currency translation adjustment | 95.4 | (35.9) | (93.4) |
Net change in postretirement benefit plans, net of tax impacts of $(5.5), $(6.9), and $9.8, respectively | 7.6 | 8.5 | (9.5) |
Net change investment securities, net of tax impacts of $0.0, $0.1, and $0.0, respectively | 0 | 0.2 | 0 |
Other comprehensive income (loss) | 103 | (27.2) | (102.9) |
Comprehensive income | 216.3 | 159.4 | 248.7 |
Less: Comprehensive (loss) income attributable to noncontrolling interests | (0.2) | 0.5 | (0.2) |
Comprehensive income attributable to ITT Inc. | 216.5 | 158.9 | 248.9 |
Disclosure of reclassification adjustments and other adjustments to postretirement benefit plans (See Note 15) | |||
Amortization of prior service benefit, net of tax expense of $1.8, $2.1, and $3.8, respectively | (3) | (3.5) | (6.2) |
Amortization of net actuarial loss, net of tax benefit of $(4.1), $(4.4), and $(4.5), respectively | 7.9 | 8 | 8.6 |
Loss (gain) on plan curtailment, net of tax (benefit) expense of $(1.4), $0.0, and $1.6, respectively | (2.3) | 0 | 2.6 |
Loss on plan settlement, net of tax benefit of $0.0, $(4.7), and $0.0, respectively | 0 | 8 | 0 |
Prior service cost, net of tax benefit of $0.8, $0.0, and $0.7, respectively | (1.3) | (0.4) | (1.3) |
Net actuarial gain (loss), net of tax (expense) benefit of $(2.6), $0.1, and $8.2, respectively | 4.6 | (4.1) | (10.5) |
Unrealized change from foreign currency translation | (2.9) | 0.5 | 2.5 |
Net change in postretirement benefit plans, net of tax impacts of $(5.5), $(6.9), and $9.8, respectively | 7.6 | 8.5 | (9.5) |
Disclosure of reclassification adjustments to investment securities | |||
Realized loss on investing securities, net of tax benefit of $0.0, $0.1, and $0.0, respectively | $ 0 | $ 0.2 | $ 0 |
CONSOLIDATED STATEMENTS OF COM5
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Partners' Capital [Abstract] | |||
Tax benefit (expense) on net change in postretirement benefit plans | $ (5.5) | $ (6.9) | $ 9.8 |
Tax benefit on net change in unrealized loss on investment securities | 0.1 | ||
Tax expense (benefit) on amortization of prior service costs | (1.8) | (2.1) | (3.8) |
Tax (benefit) on amortization of net actuarial loss | (4.1) | (4.4) | (4.5) |
Tax expense (benefit) on recognition of curtailment gain | (1.4) | 0 | 1.6 |
Tax expense (benefit) on recognition of plan settlement costs | 0 | (4.7) | 0 |
Tax (expense) on prior service credit from plan amendment | 0.8 | 0.7 | |
Tax (expense) benefit on net actuarial loss arising during the period | $ (2.6) | 0.1 | $ 8.2 |
Tax benefit on realized losses on investment securities | $ (0.1) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 389.8 | $ 460.7 |
Receivables, net | 629.6 | 523.9 |
Inventories, net | 311.9 | 295.2 |
Other current assets | 147.4 | 122 |
Total current assets | 1,478.7 | 1,401.8 |
Plant, property and equipment, net | 521.7 | 464.5 |
Goodwill | 886.8 | 774.7 |
Other intangible assets, net | 156.2 | 160.3 |
Asbestos-related assets | 304 | 314.6 |
Deferred income taxes | 149.9 | 297.4 |
Other non-current assets | 202.9 | 188.4 |
Total non-current assets | 2,221.5 | 2,199.9 |
Total assets | 3,700.2 | 3,601.7 |
Current liabilities: | ||
Short-term loans and current maturities of long-term debt | 163.6 | 214.3 |
Accounts payable | 351.4 | 301.7 |
Accrued liabilities | 384.4 | 350.2 |
Total current liabilities | 899.4 | 866.2 |
Asbestos-related liabilities | 800.1 | 877.5 |
Postretirement benefits | 227.3 | 248.6 |
Other non-current liabilities | 175.6 | 181 |
Total non-current liabilities | 1,203 | 1,307.1 |
Total liabilities | 2,102.4 | 2,173.3 |
Shareholders’ equity: | ||
Common stock: authorized – 250 shares, $1 par value per share; issued and outstanding 88.2 and 88.4, respectively | 88.2 | 88.4 |
Retained earnings | 1,856.1 | 1,789.2 |
Accumulated other comprehensive loss: | ||
Postretirement benefit plans | (137.6) | (145.2) |
Cumulative translation adjustments | (210.6) | (306) |
Total ITT Inc. shareholders' equity | 1,596.1 | 1,426.4 |
Noncontrolling interests | 1.7 | 2 |
Total shareholders’ equity | 1,597.8 | 1,428.4 |
Total liabilities and shareholders’ equity | $ 3,700.2 | 3,601.7 |
Retained Earnings [Member] | ||
Shareholders’ equity: | ||
Retained earnings | 1,789.2 | |
Noncontrolling Interest [Member] | ||
Accumulated other comprehensive loss: | ||
Noncontrolling interests | $ 2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 250 | 250 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares issued | 88.2 | 104.5 |
Common stock, shares outstanding | 88.2 | 89.5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income | $ 113.3 | $ 186.6 | $ 351.6 |
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | (1.5) | 4.2 | 39.4 |
Less: (Loss) income attributable to noncontrolling interests | (0.2) | 0.5 | (0.2) |
Income from continuing operations, net of tax | 115 | 181.9 | 312.4 |
Adjustments to income from continuing operations | |||
Depreciation and amortization | 105.3 | 102 | 90 |
Equity-based compensation | 18.1 | 12.6 | 15.7 |
Asbestos-related benefit, net | (19.9) | (25.6) | (91.4) |
Deferred income taxes | 147 | 20.9 | 25.6 |
Asbestos-related payments, net | (45.3) | (31.5) | (24.6) |
Contributions to postretirement plans | (45) | (19) | (18.6) |
Changes in assets and liabilities: | |||
Change in receivables | (59.3) | 22.5 | (72) |
Change in inventories | 14.2 | (7.2) | 31.5 |
Change in accounts payable | 16.8 | 0.7 | 11 |
Change in accrued expenses | 17.2 | (27.4) | (45.8) |
Change in accrued income taxes | (14.8) | (5.7) | (7.4) |
Other, net | (1.9) | 16.5 | 3.3 |
Net Cash – Operating activities | 247.4 | 240.7 | 229.7 |
Investing Activities | |||
Capital expenditures | (113.3) | (111.4) | (86.7) |
Acquisitions, net of cash acquired | (113.7) | (8.8) | (351) |
Purchases of investments | 0 | (60.6) | (140.1) |
Maturities of investments | 0 | 123.5 | 78.5 |
Proceeds from sale of businesses and other assets | 3.8 | 3 | 9.5 |
Proceeds from insurance recovery | 0 | 0 | 4.2 |
Other, net | 0 | (0.1) | 0.1 |
Net Cash – Investing activities | (223.2) | (54.4) | (485.5) |
Financing Activities | |||
Commercial paper, net borrowings | 48.9 | 19 | 94.5 |
Short-term revolving loans, borrowings | 77.3 | 27.7 | 200 |
Short-term revolving loans, repayments | (177.3) | (78.3) | (50) |
Proceeds from Issuance of Long-term Debt | 7 | 0 | 0 |
Long-term debt, repaid | (1.3) | (1.1) | (3.6) |
Repurchase of common stock | (32.9) | (77.8) | (84) |
Dividends paid | (45.4) | (44.6) | (42.8) |
Proceeds from issuance of common stock | 11.2 | 12.3 | 6.2 |
Excess tax benefit from equity compensation activity | 0 | 3.2 | 3.4 |
Other, net | 0 | (2.3) | (3.3) |
Net Cash – Financing activities | (112.5) | (141.9) | 120.4 |
Exchange rate effects on cash and cash equivalents | 19.8 | (11.4) | (31.6) |
Net cash from discontinued operations – operating activities | (2.4) | 12 | (1.3) |
Net change in cash and cash equivalents | (70.9) | 45 | (168.3) |
Cash and cash equivalents – beginning of year | 460.7 | 415.7 | 584 |
Cash paid (received) during the year for: | |||
Interest | 3.8 | 4.5 | 4.3 |
Income taxes, net of refunds received | $ 62 | $ 56.1 | $ 48.5 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] |
Common stock, beginning balance at Dec. 31, 2014 | 91 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.6 | ||||
Share repurchases | (2) | (2.1) | |||
Common stock, ending balance at Dec. 31, 2015 | 89.5 | ||||
Common stock, beginning balance at Dec. 31, 2014 | $ 91 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.6 | $ 24.5 | |||
Share repurchases | $ (80) | (2.1) | (81.9) | ||
Common stock, ending balance at Dec. 31, 2015 | 89.5 | ||||
Retained earnings, beginning balance at Dec. 31, 2014 | 1,445.1 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative adjustment for accounting change (See Note 2) | 0 | ||||
Net income attributable to ITT Inc. | 351.8 | 351.8 | |||
Dividends declared | (42.8) | ||||
Activity from stock incentive plans | 0.6 | 24.5 | |||
Share repurchases | (80) | $ (2.1) | (81.9) | ||
Purchase of noncontrolling interest | 0 | ||||
Retained earnings, ending balance at Dec. 31, 2015 | 1,696.7 | ||||
Postretirement benefit plans, beginning balance at Dec. 31, 2014 | $ (144.2) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in postretirement benefit plans | (9.5) | (9.5) | |||
Postretirement benefit plans, ending balance at Dec. 31, 2015 | (153.7) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2014 | (176.7) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net cumulative translation adjustment | (93.4) | ||||
Cumulative translation adjustments, ending balance at Dec. 31, 2015 | (270.1) | ||||
Unrealized (loss) gain on investment securities, beginning balance at Dec. 31, 2014 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in investment securities | 0 | 0 | |||
Unrealized (loss) gain on investment securities, ending balance at Dec. 31, 2015 | (0.3) | ||||
Noncontrolling interests, beginning balance at Dec. 31, 2014 | $ 5.4 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Income (loss) attributable to noncontrolling interests | 0.2 | (0.2) | |||
Dividend to noncontrolling interest shareholders | (3.3) | ||||
Noncontrolling interest acquired | 1.4 | ||||
Other | 0 | ||||
Noncontrolling interests, ending balance at Dec. 31, 2015 | 3.3 | ||||
Total shareholders’ equity, beginning balance at Dec. 31, 2014 | 1,220.3 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (1.5) | ||||
Net change in retained earnings | 251.6 | ||||
Net change in accumulated other comprehensive loss | (102.9) | ||||
Net change in noncontrolling interests | (2.1) | ||||
Total shareholders’ equity, ending balance at Dec. 31, 2015 | $ 1,365.4 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total accumulated other comprehensive loss | (424.1) | ||||
Activity from stock incentive plans | 1.1 | ||||
Share repurchases | (2) | (2.2) | |||
Common stock, ending balance at Dec. 31, 2016 | 104.5 | 88.4 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | $ 1.1 | 27 | |||
Share repurchases | $ (70) | (2.2) | (75.6) | ||
Common stock, ending balance at Dec. 31, 2016 | 88.4 | 88.4 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative adjustment for accounting change (See Note 2) | 0 | ||||
Net income attributable to ITT Inc. | 186.1 | 186.1 | |||
Dividends declared | (44.6) | ||||
Activity from stock incentive plans | 1.1 | 27 | |||
Share repurchases | (70) | $ (2.2) | (75.6) | ||
Purchase of noncontrolling interest | (0.4) | ||||
Retained earnings, ending balance at Dec. 31, 2016 | 1,789.2 | 1,789.2 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in postretirement benefit plans | 8.5 | 8.5 | |||
Postretirement benefit plans, ending balance at Dec. 31, 2016 | (145.2) | (145.2) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net cumulative translation adjustment | (35.9) | ||||
Cumulative translation adjustments, ending balance at Dec. 31, 2016 | (306) | (306) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in investment securities | 0.2 | 0.3 | |||
Unrealized (loss) gain on investment securities, ending balance at Dec. 31, 2016 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Income (loss) attributable to noncontrolling interests | (0.5) | 0.5 | |||
Dividend to noncontrolling interest shareholders | (1.9) | ||||
Noncontrolling interest acquired | 0 | ||||
Other | 0.1 | ||||
Noncontrolling interests, ending balance at Dec. 31, 2016 | 2 | 2 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (1.1) | ||||
Net change in retained earnings | 92.5 | ||||
Net change in accumulated other comprehensive loss | (27.1) | ||||
Net change in noncontrolling interests | (1.3) | ||||
Total shareholders’ equity, ending balance at Dec. 31, 2016 | $ 1,428.4 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total accumulated other comprehensive loss | (451.2) | ||||
Activity from stock incentive plans | 0.7 | ||||
Share repurchases | (0.8) | (0.9) | |||
Common stock, ending balance at Dec. 31, 2017 | 88.2 | 88.2 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | $ 0.7 | 29.9 | |||
Share repurchases | $ (30) | (0.9) | (32) | ||
Common stock, ending balance at Dec. 31, 2017 | 88.2 | 88.2 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative adjustment for accounting change (See Note 2) | 1 | ||||
Net income attributable to ITT Inc. | 113.5 | ||||
Dividends declared | (45.5) | ||||
Activity from stock incentive plans | 0.7 | 29.9 | |||
Share repurchases | (30) | $ (0.9) | (32) | ||
Purchase of noncontrolling interest | $ 0 | ||||
Retained earnings, ending balance at Dec. 31, 2017 | 1,856.1 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in postretirement benefit plans | 7.6 | 7.6 | |||
Postretirement benefit plans, ending balance at Dec. 31, 2017 | (137.6) | (137.6) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net cumulative translation adjustment | 95.4 | ||||
Cumulative translation adjustments, ending balance at Dec. 31, 2017 | (210.6) | (210.6) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in investment securities | 0 | 0 | |||
Unrealized (loss) gain on investment securities, ending balance at Dec. 31, 2017 | 0 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Income (loss) attributable to noncontrolling interests | 0.2 | 0.2 | |||
Dividend to noncontrolling interest shareholders | 0 | ||||
Noncontrolling interest acquired | 0 | ||||
Other | $ (0.1) | ||||
Noncontrolling interests, ending balance at Dec. 31, 2017 | 1.7 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (0.2) | ||||
Net change in retained earnings | 66.9 | ||||
Net change in accumulated other comprehensive loss | 103 | ||||
Net change in noncontrolling interests | (0.3) | ||||
Total shareholders’ equity, ending balance at Dec. 31, 2017 | $ 1,597.8 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total accumulated other comprehensive loss | $ (348.2) |
Description of Business, Basis
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and oil and gas markets. Unless the context otherwise indicates, references herein to "ITT," "the Company," and such words as "we," "us," and "our" include ITT Inc. and its subsidiaries. ITT operates through three segments: Industrial Process, consisting of industrial flow equipment and services; Motion Technologies, consisting of friction and shock and vibration equipment; and Connect & Control Technologies, consisting of electronic connectors, fluid handling, motion control, and noise and energy absorption products. Financial information for our segments is presented in Note 3 , Segment Information . On May 16, 2016, we consummated a corporate reorganization into a holding company structure. As a result of the reorganization ITT Inc., an Indiana corporation that was previously a wholly owned subsidiary of ITT Corporation, became the publicly traded holding company of ITT Corporation and its subsidiaries and the successor issuer to ITT Corporation under Rule 12g-3(a) under the Securities Exchange Act of 1934 (Exchange Act). As the successor issuer, ITT Inc. common stock was deemed to be registered under Section 12(b) of the Exchange Act and ITT Inc. succeeded to ITT Corporation’s obligation to file reports, proxy statements and other information required by the Exchange Act with the SEC. For additional information regarding the holding company reorganization, please refer to the Current Report on Form 8-K that we filed with the SEC on May 16, 2016. On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related businesses, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this report as the “2011 spin-off.” On May 29, 2015, Harris Corporation acquired Exelis. Basis of Presentation The Consolidated Financial Statements and Notes thereto were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. Certain prior year amounts have been reclassified to conform to the current year presentation. Significant Accounting Policies Principles of Consolidation Our consolidated financial statements include the accounts of all majority-owned subsidiaries. ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Statements of Operations. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal or distribution. All intercompany transactions have been eliminated. Revenue Recognition Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions. Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period. For multiple deliverable arrangements, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied. We generally recognize revenue for certain long-term design and build projects using the percentage-of-completion method, based upon the percentage of costs incurred to total projected costs. Revenue and profit recognized under the percentage-of-completion method are based on management’s estimates. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of receivables, net. During the performance of long-term sales contracts, estimated final contract prices and costs are reviewed quarterly and revisions are made as required and recorded in income in the period in which they are determined. We apply the completed-contract method of accounting for smaller design and build contracts, including those of short-term duration. Amounts invoiced to customers in excess of revenue recognized are recorded as a reduction of inventory to the extent project costs have accumulated within inventory or as deferred revenue, within accrued liabilities, until the revenue recognition criteria are satisfied. Our results of operations and financial position would not vary materially had we used the percentage-of-completion method for these types of contracts. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses are recorded as a component of costs of revenue. We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. Revenue is reported net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Shipping and Handling Costs Shipping and handling costs are recorded as a component of costs of revenue. Product Warranties Our standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim. Asbestos-Related Liabilities and Assets Subsidiaries of ITT, including ITT LLC and Goulds Pumps LLC, have been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis, due to the inability to reliably forecast the timing of future cash flows. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. The Company has also recorded an asbestos-related asset composed of insurance receivables. The asbestos-related asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers, as well as a review of expected levels of future cost recovery, the financial viability of the insurance companies, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, and interpretation of the various policy and contract terms and limits and their interrelationships. Consistent with the asbestos liability, the asbestos-related asset has not been discounted to present value due to the inability to reliably forecast the timing of future cash flows. Under coverage-in-place agreements, an insurer’s policies remain in force and the insurer undertakes to provide coverage for the Company’s pending and future asbestos claims on specified terms and conditions. Insurance payments under coverage-in-place agreements are made to the Company as asbestos claims are settled or adjudicated. The Company’s buyout agreements provide an agreed upon amount of available coverage for future asbestos claims under the subject policies to be paid to a Qualified Settlement Fund (QSF) on a specific schedule as agreed upon by the Company and its insurer. However, assets in the QSF are only available and distributed when qualifying asbestos expenditures are submitted for reimbursement as defined in the QSF agreement. Therefore, recovery of insurance reimbursements under these types of agreements is dependent on the timing of the payment of the liability and, consistent with the asbestos liability, have not been discounted to present value. In the third quarter each year we conduct an asbestos remeasurement with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions used to estimate our asbestos liability and related assets, including a reassessment of the time horizon over which a reasonable estimate of unasserted claims can be projected. In addition, as part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. Provided the quarterly review does not indicate a more detailed evaluation of our asbestos exposure is required, each quarter we record a net asbestos expense to maintain a rolling 10-year time horizon. Postretirement Benefit Plans ITT sponsors numerous pension and other employee-related defined benefit plans (collectively, postretirement benefit plans). The majority of these plans are closed to new participants. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, and age at retirement or termination. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental. The assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, and other factors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Actual results that differ from our assumptions are accumulated and are amortized over the estimated future working life, or remaining lifetime, of the plan participants depending on the nature of the retirement plan. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last 5 years . The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. The funded status of each plan is recorded on our balance sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through net income are recorded in accumulated other comprehensive income within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost. Research & Development Research and development activities are charged to expense as incurred. Income Taxes We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. We record a valuation allowance against our deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence regarding the realizability of its deferred tax assets, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, estimated future taxable income, and whether we have a recent history of losses. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates. We have not provided deferred tax liabilities for the impact of U.S. income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the U.S. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations. Furthermore, we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position in consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of the proceedings (or negotiations) with the taxing authorities. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate settlement. Earnings Per Share Basic earnings per common share considers the weighted average number of common shares outstanding. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock units and unvested performance stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect. Cash and Cash Equivalents ITT considers all highly liquid investments purchased with an original maturity or remaining maturity at the time of purchase of three months or less to be cash equivalents. Cash equivalents primarily include fixed-maturity time deposits and money market investments. We record the fixed maturity time deposits at amortized cost and accrue interest during the maturity period. Concentrations of Credit Risk Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, investments and derivatives. We maintain cash and cash equivalents with various financial institutions located in different geographical regions, and our policy is designed to limit exposure to any individual counterparty. As part of our risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from financial instruments held at financial institutions. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. However, our largest customer represents approximately 11% and 12% of the December 31, 2017 and 2016 outstanding trade accounts receivable balance, respectively. ITT performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances. Factoring of Trade Receivables Factoring arrangements, whereby substantially all economic risks and rewards associated with trade receivables are transferred to a third party, are accounted for by derecognizing the trade receivables upon receipt of cash proceeds from the factoring arrangement. Factoring arrangements, whereby some, but not substantially all, of the economic risks and rewards are transferred to a third party and the assets subject to the factoring arrangement remain under the Company's control are accounted for by not derecognizing the trade receivables and recognizing any related obligations to the third party. Allowance for Doubtful Accounts We determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of our customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. Inventories Inventories, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value and are charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 12.1% and 12.9% of total 2017 and 2016 inventories, respectively. We have a LIFO reserve of $9.6 and $8.1 recorded as of December 31, 2017 and 2016 , respectively. Cost of sales is generally reported using standard cost techniques with full overhead absorption that approximates actual cost. Plant, Property and Equipment Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: buildings and improvements – 5 to 40 years , machinery and equipment – 2 to 10 years , and furniture and office equipment – 3 to 7 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Repairs and maintenance costs are expensed as incurred. The Company enters into operating and capital leases for the use of premises and equipment. Rent expense related to operating lease agreements are recorded on a straight line basis, considering lease incentives and escalating rental payments. Capitalized Internal Use Software Costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from 3 to 7 years. Investments Investments in fixed-maturity time deposits having an original maturity exceeding three months at the time of purchase, referred to as short-term time deposits, are classified as held-to-maturity and are recorded at amortized cost, which approximates fair value. There were no short-term time deposits held as of December 31, 2017 and December 31, 2016 . Short-term time deposits are presented in other current assets as short-term investments on the Consolidated Balance Sheet. We did not realize any gains or losses from the maturity of these short-term time deposits during 2017 or 2016 and interest income recognized during 2017 or 2016 was not material to our results of operations. Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of the balance sheet date. The Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $101.0 and $96.5 at December 31, 2017 and 2016 , respectively. Changes in the cash surrender value during the period generally reflect gains or losses in the fair value of assets, premium payments, and policy redemptions. Gains from COLI investments of $3.8 , $3.0 , and $3.6 were recorded within general and administrative expenses in the Consolidated Statements of Operations during years ended December 31, 2017 , 2016 and 2015 , respectively. The COLI policy investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2017 and 2016 were approximately $12.5 and $12.6 , respectively, however, the COLI policies do not represent a committed funding source for these obligations and as such they are subject to claims from creditors, and we can designate them for another purpose at any time. Long-Lived Asset Impairment Long-lived assets, including intangible assets with finite lives and capitalized internal use software, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. Goodwill and Intangible Assets Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of the acquired business. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are generally amortized on a straight-line basis over an estimated economic useful life, which generally ranges from 10 - 20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth fiscal quarter. An initial qualitative evaluation is performed which considers present events and circumstances, to determine the likelihood of impairment. If the likelihood of impairment is not considered to be more likely than not, then no further testing is performed. If it is considered to be more likely than not that the asset is impaired, then a two-step quantitative impairment test is performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded, if any. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. For indefinite-lived intangibles, if it is considered to be more likely than not that the asset is impaired, we compare the fair value of those assets to their carrying value. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. We estimate the fair value of our reporting units using an income approach. Under the income approach, we estimate fair value based on the present value of estimated future cash flows. We estimate the fair value of our indefinite-lived intangible assets using the relief from royalty method. The relief from royalty method estimates the portion of a company’s earnings attributable to an intellectual property asset based on an assumed royalty rate that the company would have paid had the asset not been owned. Business Combinations ITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill in the reporting period in which the adjustment amounts are determined. Changes to acquisition date fair values after expiration of the measurement period are recorded in earnings. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred and the costs associated with restructuring actions initiated after the acquisition are recognized separately from the business combination. Commitments and Contingencies We record accruals for commitments and loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss, and these assessments can involve a series of complex judgments about future events and may rely on estimates and assumptions that have been deemed reasonable by management. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other current information. See Note 18 , Commitments and Contingencies for additional information. Environmental-Related Liabilities and Assets Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs, and that share can be reasonably estimated. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude cl |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2017 | |
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. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09 to simplify several aspects of the accounting standard for employee share-based payment transactions, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. ITT elected to adopt this guidance as of January 1, 2017 which includes the following: • Excess tax benefits and deficiencies are no longer recognized as a change in additional paid-in-capital in the equity section of the Balance Sheet. Instead they are recognized on the Statements of Operations as a tax expense or benefit. On the Statement of Cash Flows, excess tax benefits and deficiencies are no longer classified as a financing activity. Instead they are classified as an operating activity. These provisions were adopted using a prospective method of transition. During 2017, we recorded an income tax benefit of $2.7 , on the Statement of Operations and classified this benefit on the Statement of Cash Flows as an operating activity. The excess tax benefit of $3.2 and $3.4 for 2016 and 2015 was recorded as a change in equity on the Balance Sheet and was classified as a financing activity on the Statement of Cash Flows. Previously unrecognized tax benefits due to net operating loss carryforwards were recognized during the first quarter of 2017 using a modified retrospective approach, resulting in a cumulative-effect adjustment to increase retained earnings by $2.1 as of January 1, 2017. In addition, a corresponding deferred tax asset of $25.6 was partially offset by a valuation allowance of $23.5 during the first quarter of 2017 as the newly recognized net operating losses were not considered more likely than not realizable. • The impact of forfeitures are now recognized as they occur as opposed to previously estimating future employee forfeitures. We adopted this provision utilizing a modified retrospective approach, resulting in a cumulative-effect adjustment reducing retained earnings by $1.1 , net of tax, as of January 1, 2017. • The ASU also provides new guidance to other areas including minimum statutory tax withholding rules and the calculation of diluted common shares outstanding. The adoption of these provisions were reflected prospectively in the financial statements and did not have a material impact. Accounting Pronouncements Not Yet Adopted In March 2017, the FASB issued ASU 2017-07 which amends the Statement of Operations presentation for the components of net periodic benefit cost for entities that sponsor defined benefit pension and other postretirement plans. Under the ASU, entities will be required to disaggregate the service cost component and present it with other current compensation costs for the related employees. All other components of net periodic benefit cost will no longer be classified as an operating expense. In addition, only the service cost component will be eligible for capitalization on the balance sheet. The ASU is effective for the Company beginning in first quarter of 2018 and requires a retrospective transition method to adopt the requirement to present service costs separately from the other components of net periodic benefit cost in the statements of operations, and a prospective transition method to adopt the requirement that prohibits capitalization of all components of net periodic benefit cost on the balance sheet except service costs. As a result of the adoption of the new standard, certain net periodic benefit costs will be reclassified as non-operating expenses resulting in an increase to operating income of approximately $10 and $18 for 2017 and 2016, respectively, with an offsetting impact to non-operating expense (income). In addition, service costs eligible for capitalization on the balance sheet in 2018 is expected to be immaterial. In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intending 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 their 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 Statements of Operations, 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 ASU is effective for the Company beginning in the first quarter 2019, at which time we expect to adopt the new standard. We are currently assessing our existing lease agreements and related financial disclosures to evaluate 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. Based on the evaluation of our current contracts and revenue streams, most will be recorded consistently under both the current and new standard. However, the timing of revenue recognition of certain design and build contracts, recognized using the percentage of completion method under the current standard, will be dependent on contract terms and therefore will vary based on the new guidance. We plan to adopt the new guidance using a modified retrospective approach in the first quarter of 2018. As of the date of adoption, we estimate we have recognized approximately $40 of revenue and $5 of operating income on open contracts in the Industrial Process segment using the percentage of completion method that under the new guidance will not qualify for over time recognition. As a result, we estimate the cumulative effect of adopting the new guidance will decrease the opening balance of retained earnings by $4 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION During the first quarter of 2017, we combined our former Interconnect Solutions and Control Technologies segments to form Connect & Control Technologies. All prior year segment information has been reclassified based on our current segment structure. The Company’s segments are reported on the same basis used by our chief operating decision maker, for evaluating performance and for allocating resources. Our three reportable segments are referred to as: Industrial Process, Motion Technologies, and Connect & 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. Connect & Control Technologies manufactures harsh-environment connector solutions and critical energy absorption and flow control components for the aerospace and defense, general industrial, medical, and oil and gas markets. Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as asbestos and environmental liabilities, that are managed at a corporate level and are not included in segment results when evaluating performance or allocating resources. Assets of the segments exclude general corporate assets, which principally consist of cash, investments, asbestos-related receivables, deferred taxes, and certain property, plant and equipment. Revenue Operating Income (Loss) Operating Margin 2017 2016 2015 2017 2016 2015 2017 2016 2015 Industrial Process $ 807.2 $ 830.1 $ 1,113.8 $ 59.5 $ 33.5 $ 141.2 7.4 % 4.0 % 12.7 % Motion Technologies 1,176.0 983.4 767.2 190.0 171.4 126.4 16.2 % 17.4 % 16.5 % Connect & Control Technologies 605.6 596.3 609.3 66.7 65.2 54.6 11.0 % 10.9 % 9.0 % Total segment results 2,588.8 2,409.8 2,490.3 316.2 270.1 322.2 12.2 % 11.2 % 13.0 % Asbestos-related benefit, net — — — 19.9 25.6 91.4 — — — Eliminations / Other corporate costs (3.5 ) (4.4 ) (4.7 ) (26.4 ) (36.8 ) (33.5 ) — — — Total Eliminations / Corporate and Other costs (3.5 ) (4.4 ) (4.7 ) (6.5 ) (11.2 ) 57.9 — — — Total $ 2,585.3 $ 2,405.4 $ 2,485.6 $ 309.7 $ 258.9 $ 380.1 12.0 % 10.8 % 15.3 % Assets Capital Expenditures Depreciation and Amortization 2017 2016 2017 2016 2015 2017 2016 2015 Industrial Process $ 1,025.7 $ 998.1 $ 19.3 $ 24.4 $ 20.4 $ 27.5 $ 27.9 $ 27.9 Motion Technologies 1,140.4 838.4 79.1 73.5 39.3 49.4 43.2 32.4 Connect & Control Technologies 694.8 678.4 10.6 11.7 23.7 22.8 24.3 23.4 Corporate and Other 839.3 1,086.8 4.3 1.8 3.3 5.6 6.6 6.3 Total $ 3,700.2 $ 3,601.7 $ 113.3 $ 111.4 $ 86.7 $ 105.3 $ 102.0 $ 90.0 Revenue (a) Geographic Information 2017 2016 2015 United States $ 853.6 $ 900.3 $ 941.1 Germany 389.3 324.4 290.7 Other developed markets 495.5 459.6 476.8 Other emerging markets 846.9 721.1 777.0 Total $ 2,585.3 $ 2,405.4 $ 2,485.6 (a) Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery. Plant, Property & Equipment, Net Geographic Information 2017 2016 United States $ 168.3 $ 181.6 Italy 102.9 81.0 China 52.1 40.2 Germany 39.1 38.5 Mexico 34.5 28.7 Czech Republic 27.9 16.8 South Korea 27.8 28.0 Other developed markets 41.8 36.0 Other emerging markets 27.3 13.7 Total $ 521.7 $ 464.5 The following table provides revenue by product category, net of intercompany balances. 2017 2016 2015 Pumps and complementary products $ 718.8 $ 745.1 $ 1,025.9 Pump support and maintenance services 88.4 84.7 87.8 Brake component products 979.7 873.4 656.7 Shock absorber equipment 196.0 109.6 110.2 Connectors 317.9 309.1 327.9 Aerospace control components 223.1 220.8 210.7 Industrial control components 61.4 62.7 66.4 Total $ 2,585.3 $ 2,405.4 $ 2,485.6 During 2017 , 2016 , and 2015 , a single external customer accounted for 11.1% , 10.5% , and 9.1% |
Restructuring Actions
Restructuring Actions | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Actions | RESTRUCTURING ACTIONS Restructuring costs are included as a component of general and administrative expense in our Consolidated Statements of Operations. Restructuring costs incurred during each of the previous three years ended are presented in the table below. 2017 2016 2015 By component: Severance costs $ 9.5 $ 24.3 $ 21.7 Asset write-offs 1.9 0.7 1.0 Other restructuring costs 1.7 1.3 1.3 Total restructuring costs $ 13.1 $ 26.3 $ 24.0 By segment: Industrial Process $ 7.4 $ 20.5 $ 12.2 Motion Technologies 2.3 2.5 — Connect & Control Technologies 3.3 1.5 11.6 Corporate and Other 0.1 1.8 0.2 The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for each of the previous two years ended December 31st. 2017 2016 Restructuring accruals - beginning balance $ 14.6 $ 20.0 Restructuring costs 13.1 26.3 Cash payments (17.8 ) (30.3 ) Asset write-offs (1.9 ) (0.7 ) Foreign exchange translation and other 0.9 (0.7 ) Restructuring accrual - ending balance $ 8.9 $ 14.6 By accrual type: Severance accrual $ 8.0 $ 14.3 Facility carrying and other costs accrual 0.9 0.3 We have initiated various restructuring actions throughout the business during the past three years. Discussion of certain individually significant actions is provided below. Other less significant restructuring actions initiated in the past three years include various reduction in force initiatives and the relocation of certain manufacturing facilities. Industrial Process Restructuring Actions Since 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 in an effort to align with the declining oil and gas market conditions experienced over the past three years. During 2017 , we continued to pursue these objectives and we recognized $7.4 of restructuring costs related to severance for approximately 70 employees, the exit of certain office space, and an asset write-off. During 2016 and 2015, we recognized restructuring costs of $20.5 and $12.2 , respectively, primarily related to employee severance costs. Cash payments related to these actions are expected to be substantially complete in 2018. We will continue to monitor and evaluate the need for any additional restructuring actions. 2017 2016 Restructuring accruals - beginning balance $ 6.5 $ 4.9 Restructuring costs 7.4 20.5 Cash payments (7.3 ) (18.0 ) Asset write-offs (1.8 ) (0.5 ) Foreign exchange translation and other (0.9 ) (0.4 ) Restructuring accruals - ending balance $ 3.9 $ 6.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For each of the years ended December 31, 2017 , 2016 , and 2015 the tax data related to continuing operations is as follows: 2017 2016 2015 Income components: United States $ 89.2 $ 87.5 $ 159.3 International 220.2 170.9 223.0 Income from continuing operations before income tax 309.4 258.4 382.3 Income tax expense components: Current income tax expense (benefit): United States – federal 7.7 4.3 (8.5 ) United States – state and local 1.3 (0.3 ) 0.1 International 38.6 51.1 52.9 Total current income tax expense 47.6 55.1 44.5 Deferred income tax expense components: United States – federal 105.9 26.4 31.9 United States – state and local 4.4 (2.1 ) 6.0 International 36.7 (3.4 ) (12.3 ) Total deferred income tax expense 147.0 20.9 25.6 Income tax expense $ 194.6 $ 76.0 $ 70.1 Effective income tax rate 62.9 % 29.4 % 18.3 % A reconciliation of the income tax expense for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 Tax provision at U.S. statutory rate 35.0 % 35.0 % 35.0 % Federal deferred taxes remeasurement - Tax Act 27.8 % — % — % One-time tax on foreign earnings - Tax Act 18.8 % — % — % Foreign tax rate differential (8.6 )% (3.5 )% (4.7 )% Tax exempt interest (7.8 )% (5.2 )% (6.7 )% Valuation allowance on deferred tax assets 7.2 % 1.4 % 3.3 % Tax on undistributed foreign earnings (4.8 )% 4.9 % (5.6 )% U.S. permanent items (2.2 )% (1.9 )% (1.0 )% Italy patent box prior year benefit (1.1 )% — % — % Audit settlements and unrecognized tax benefits (0.8 )% (5.2 )% (5.0 )% U.S. tax on foreign earnings 0.3 % 4.7 % 3.8 % State and local income tax 0.3 % (0.1 )% 1.0 % Foreign tax holiday — % — % (1.1 )% Other adjustments (1.2 )% (0.7 )% (0.7 )% Effective income tax rate 62.9 % 29.4 % 18.3 % Our effective tax rate in 2017 includes the significant impact related to the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) that was approved by Congress on December 20, 2017 and signed into law by the U.S. President on December 22, 2017. The Tax Act significantly changes the U.S. corporate income tax rules most of which are effective January 1, 2018. On December 22, 2017 the SEC issued guidance under Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions a company has made, additional regulatory guidance that may be issued, and actions a company may take as a result of the Tax Act. Quantifying the impact of the Tax Act is subject to guidance and regulations to be issued by the U.S. Treasury and possible changes to state tax laws. The Company is unable to compute with certainty the impact of the Tax Act on its financial statements. The Company has performed provisional computations of the impact of the Tax Act and has recorded the provisional amounts in its financial statements. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date. The Tax Act adopts a new system of taxation for taxing foreign source income by providing a 100% dividend received deduction for dividends received from foreign subsidiaries; however, it imposes a one-time tax on existing post-1986 earnings albeit at reduced tax rates. The Company has recognized the following provisional tax impacts related to deemed repatriated post-1986 foreign earnings and future distribution of these earnings to the U.S. • The Company’s provisional computations show that approximately $1.2 billion of the Company’s existing post - 1986 foreign earnings to be subject to a one-time US tax. • The Company recorded one-time provisional U.S. tax expense of $57.9 on existing post - 1986 foreign earnings, tax expense of $37.6 on undistributed foreign earnings, reflecting foreign withholding taxes , foreign and U.S. state income taxes on future distributions of such earnings . • The Company also reversed a previously recorded tax liability of $52.3 on undistributed foreign earnings that were previously considered not permanently reinvested in foreign countries. The Company intends to distribute all post-1986 earnings to the U.S. in future years, and therefore is no longer asserting permanent reinvestment of these earnings outside the U.S. Further, the Company will provide for any U.S. state and foreign taxes on distributions of future earnings of its foreign subsidiaries as these earnings will not be considered permanently reinvested in the foreign countries. The Company has performed provisional computations and has not provided deferred taxes on its remaining excess of financial reporting over tax bases of investments in its foreign subsidiaries of approximately $218 that it intends to permanently reinvest outside the U.S. The Company anticipates that foreign earnings of $1.2 billion and future earnings of its foreign subsidiaries that are considered not permanently reinvested will be sufficient to meet its U.S. cash needs. In the event additional foreign funds are needed to support U.S. operations, and if U.S. tax has not already been previously provided, we would be required to accrue and pay additional U.S. taxes. The Tax Act reduced the U.S. corporate income tax rate to 21% from 35% . The Company has recorded tax expense of $86.0 in its consolidated financial statements for the year ended December 31, 2017 resulting from a decrease in its U.S. net deferred tax assets. The Tax Act limits deductibility of net interest expense and officer compensation, adopts certain additional rules to tax low-taxed foreign earnings and provides reduced tax rates for certain earnings from intangibles and export activities. The company continues to maintain approximately $3.6 of deferred tax assets on its books that may not be realizable due to new limitations under the Tax Act on the deductibility of officer’s compensation. The Company will wait for further guidance from the Internal Revenue Service before deciding on the realizability of these deferred tax assets. These new rules are applicable to the tax year 2018 and forward and the Company is in the process of evaluating their impact on its financial statements. We anticipate that negative impacts of the Tax Act will reduce the tax benefit resulting from the reduced U.S. corporate income tax rate. The Tax Act adopts a new rule “Global Intangible Low Taxed Income” (GILTI) that requires certain income of controlled foreign corporations to be subject to U.S. taxation. We are allowed under ASC 740 to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current period expense when incurred or (2) factoring such amounts into the Company’s measurement of its deferred taxes. Because of the complexity of these rules, and anticipated guidance from U.S. Treasury we will continue to evaluate the impact on the Company’s financial statements. Therefore, we have not recorded any deferred taxes related to GILTI and have not made a policy decision regarding whether to record deferred taxes on GILTI. Deferred tax assets and liabilities include the following: 2017 2016 Deferred Tax Assets: Loss carryforwards $ 165.5 $ 112.3 Asbestos 118.7 209.8 Employee benefits 70.8 98.9 Accruals 51.3 74.8 Credit carryforwards 5.7 50.7 Other 23.1 21.2 Gross deferred tax assets 435.1 567.7 Less: Valuation allowance 170.0 113.3 Net deferred tax assets $ 265.1 $ 454.4 Deferred Tax Liabilities: Intangibles $ (45.4 ) $ (68.3 ) Undistributed earnings (39.0 ) (52.3 ) Accelerated depreciation (31.8 ) (36.5 ) Investment (0.2 ) (0.4 ) Total deferred tax liabilities $ (116.4 ) $ (157.5 ) Net deferred tax assets $ 148.7 $ 296.9 Deferred taxes are presented in the Consolidated Balance Sheets as follows: 2017 2016 Non-current assets $ 149.9 $ 297.4 Other non-current liabilities (1.2 ) (0.5 ) Net deferred tax assets $ 148.7 $ 296.9 The table included below provides a rollforward of our valuation allowance on net deferred income tax assets from December 31, 2014 to December 31, 2017 . Federal State Foreign Total DTA valuation allowance - December 31, 2014 $ — $ 45.0 $ 102.1 $ 147.1 Change in assessment — — (7.4 ) (7.4 ) Current year operations — (3.5 ) (0.5 ) (4.0 ) DTA valuation allowance - December 31, 2015 — 41.5 94.2 135.7 Change in assessment — — (0.3 ) (0.3 ) Current year operations — 4.4 (26.5 ) (22.1 ) DTA valuation allowance - December 31, 2016 — 45.9 67.4 113.3 Current year operations — 26.5 30.2 56.7 DTA valuation allowance - December 31, 2017 $ — $ 72.4 $ 97.6 $ 170.0 The Company continues to maintain a valuation allowance against certain deferred tax assets attributable to state net operating losses and tax credits, and certain foreign net deferred tax assets primarily in Luxembourg, Germany, China and India which are not expected to be realized. We have the following tax attributes available for utilization at December 31, 2017 : Attribute Amount First Year of Expiration U.S. federal net operating losses $ 0.1 12/31/2033 U.S. state net operating losses $ 1,326.2 12/31/2018 U.S. federal tax credits $ 0.2 12/31/2021 U.S. state tax credits $ 5.5 12/31/2020 Foreign net operating losses (a) $ 350.0 12/31/2018 (a) Included are approximately $ 228.1 of net operating loss carryforwards in Luxembourg as of December 31, 2017 that do not expire. Excess tax benefits related to stock-based compensation of $2.7 for 2017 were recorded as an income tax benefit in the statement of operations, whereas the 2016 and 2015 amounts of $3.2 and $3.4 , respectively, were recorded as an adjustment to retained earnings in the balance sheet. The change in presentation is due to the January 1, 2017 adoption of ASU 2016-09 that simplified several aspects of the accounting for employee share-based payment transactions. The 2017 income tax benefit has been reflected in the caption “U.S. permanent items” within the effective tax rate reconciliation table. Uncertain Tax Positions We recognize income tax benefits from uncertain tax positions only if, based on the technical merits of the position, it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2017 , 2016 , and 2015 is as follows: 2017 2016 2015 Unrecognized tax benefits – January 1 $ 69.5 $ 87.6 $ 160.1 Additions for: Current year tax positions 1.1 1.2 3.4 Prior year tax positions — 0.2 1.8 Assumed in acquisition — 0.2 1.9 Reductions for: Prior year tax positions (12.7 ) (3.8 ) (56.6 ) Expiration of statute of limitations (5.8 ) (5.0 ) (4.0 ) Settlements (0.2 ) (10.9 ) (19.0 ) Unrecognized tax benefits – December 31 $ 51.9 $ 69.5 $ 87.6 As of December 31, 2017 , $24.7 and $2.5 of the unrecognized tax benefits would affect the effective tax rate for continuing operations and discontinued operations respectively, if realized. 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, China, Germany, Hong Kong, Italy, Korea, Mexico, the U.S. and Venezuela. The calculation of our tax liability for unrecognized tax benefits includes dealing with uncertainties in the application of complex tax laws and regulations in various tax jurisdictions. Due to the complexity of some uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit. 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. The settlement of any future examinations could result in changes in the amounts attributable to the Company under its existing Tax Matters Agreement with Exelis and Xylem. The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2017 : Jurisdiction Earliest Open Year China 2012 Czech Republic 2011 Germany 2010 Italy 2005 Korea 2012 Luxembourg 2012 Mexico 2012 United States 2014 We classify interest relating to tax matters as a component of interest expense and tax penalties as a component of income tax expense in our Consolidated Statements of Operations. During 2017 , 2016 , and 2015 we recognized a net interest benefit of $2.4 , $2.9 , and $5.7 , respectively, related to tax matters. We had $4.1 , $6.8 , and $9.8 of interest expense accrued from continuing and discontinued operations related to tax matters as of December 31, 2017 , 2016 , and 2015 , respectively. Tax Matters Agreement On October 25, 2011, we entered into a Tax Matters Agreement with Exelis and Xylem that governs the respective rights, responsibilities and obligations of the companies after the 2011 spin-off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. Federal, state, local and foreign income taxes, other tax matters and related tax returns. Exelis and Xylem have liability with ITT to the U.S. Internal Revenue Service (IRS) for the consolidated U.S. Federal income taxes of the ITT consolidated group relating to the taxable periods in which Exelis and Xylem were part of that group. During 2015, the Company settled the U.S. income tax audit for tax years 2009 to 2011. Pursuant to the Tax Matters Agreement, the Company was entitled to reimbursement for a portion of the tax liability and recorded an aggregate receivable of $14.8 from Exelis and Xylem as of December 31, 2015. During 2016, ITT collected the receivables from Exelis and Xylem. Exelis reimbursed ITT for an additional $1.5 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
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 common shares outstanding for the three years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Basic weighted average common shares outstanding 88.3 89.2 89.8 Add: Dilutive impact of outstanding equity awards 0.7 0.7 0.9 Diluted weighted average common shares outstanding 89.0 89.9 90.7 The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three years ended December 31, 2017 , 2016 and 2015 because they were anti-dilutive. 2017 2016 2015 Anti-dilutive stock options 0.3 0.7 0.4 Average exercise price $ 42.43 $ 38.34 $ 42.50 Year(s) of expiration 2024 - 2025 2024 - 2026 2024 - 2025 In addition, 0.1 of outstanding employee PSU awards (see Note 16 , Long-Term Incentive Employee Compensation , for additional information on PSU awards) were excluded from the computation of diluted earnings per share for the years ended December 31, 2017 , 2016 and 2015 |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Receivables, Net | RECEIVABLES, NET 2017 2016 Trade accounts receivable $ 601.4 $ 513.5 Notes receivable 3.9 4.2 Other (a) 40.4 21.6 Receivables, gross 645.7 539.3 Less: allowance for doubtful accounts 16.1 15.4 Receivables, net $ 629.6 $ 523.9 (a) Other includes an insurance-related settlement receivable of $19.0 recorded in 2017. The following table displays a rollforward of the allowance for doubtful accounts for the years ended December 31, 2017 , 2016 , and 2015 . 2017 2016 2015 Allowance for doubtful accounts – January 1 $ 15.4 $ 16.1 $ 13.3 Charges to income 3.6 1.5 3.6 Write-offs (4.4 ) (1.5 ) (0.8 ) Foreign currency and other 1.5 (0.7 ) — Allowance for doubtful accounts – December 31 $ 16.1 $ 15.4 $ 16.1 |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | INVENTORIES, NET 2017 2016 Finished goods $ 55.9 $ 53.0 Work in process 54.8 60.5 Raw materials 184.4 166.0 Inventoried costs related to long-term contracts 38.1 33.5 Total inventory before progress payments 333.2 313.0 Less – progress payments (21.3 ) (17.8 ) Inventories, net $ 311.9 $ 295.2 |
Other Current and Non-Current A
Other Current and Non-Current Assets | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current and Non-Current Assets | OTHER CURRENT AND NON-CURRENT ASSETS 2017 2016 Asbestos-related current assets $ 64.7 $ 66.0 Prepaid income tax 30.3 7.6 Other 52.4 48.4 Other current assets $ 147.4 $ 122.0 Other employee benefit-related assets $ 111.3 $ 96.5 Capitalized software costs 41.9 38.1 Environmental-related assets 24.5 33.4 Equity method investments 6.7 5.6 Other 18.5 14.8 Other non-current assets $ 202.9 $ 188.4 |
Plant, Property and Equipment,
Plant, Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Plant, Property and Equipment, Net | PLANT, PROPERTY AND EQUIPMENT, NET 2017 2016 Machinery and equipment $ 1,039.9 $ 898.6 Buildings and improvements 262.5 244.6 Furniture, fixtures and office equipment 74.5 68.0 Construction work in progress 58.4 68.5 Land and improvements 28.7 28.2 Other 10.9 5.3 Plant, property and equipment, gross 1,474.9 1,313.2 Less: accumulated depreciation (953.2 ) (848.7 ) Plant, property and equipment, net $ 521.7 $ 464.5 Depreciation expense of $78.3 , $74.1 and $70.7 was recognized in 2017 , 2016 and 2015 , respectively. During 2017 the Company entered into an agreement to sell excess property for a cash purchase price of approximately $41 . The purchaser’s due diligence period has ended, however there are remaining conditions to closing which are anticipated to be finalized in the first half of 2018. At closing, the Company will receive the cash proceeds and is expected to record a gain of approximately $38 to $40 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill Changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 by segment are as follows: Industrial Process Motion Technologies Connect & Control Technologies Total Goodwill - December 31, 2015 $ 312.6 $ 201.0 $ 264.7 $ 778.3 Adjustments to purchase price allocations — 2.6 0.4 3.0 Foreign currency (4.2 ) (1.3 ) (1.1 ) (6.6 ) Goodwill - December 31, 2016 $ 308.4 $ 202.3 $ 264.0 $ 774.7 Goodwill acquired — 91.2 — 91.2 Adjustments to purchase price allocations — (8.2 ) — (8.2 ) Foreign currency 16.1 10.3 2.7 29.1 Goodwill - December 31, 2017 $ 324.5 $ 295.6 $ 266.7 $ 886.8 Goodwill acquired during 2017 relates to our acquisition of Axtone and represents the excess of the purchase price over the net assets acquired, the valuation of which is expected to be completed in the first quarter of 2018. Upon completion of the valuation, goodwill acquired will be adjusted to reflect the final fair value of the net assets acquired. See Note 21 , Acquisitions , for further information. Other Intangible Assets Information regarding our other intangible assets is as follows: December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 166.2 $ (74.4 ) $ 91.8 $ 155.8 $ (59.3 ) $ 96.5 Proprietary technology 54.4 (21.8 ) 32.6 52.5 (16.8 ) 35.7 Patents and other 13.5 (9.2 ) 4.3 9.0 (7.6 ) 1.4 Finite-lived intangible total 234.1 (105.4 ) 128.7 217.3 (83.7 ) 133.6 Indefinite-lived intangibles 27.5 — 27.5 26.7 — 26.7 Other Intangible Assets $ 261.6 $ (105.4 ) $ 156.2 $ 244.0 $ (83.7 ) $ 160.3 Indefinite-lived intangibles primarily consist of brands and trademarks. During the second quarter of 2016, we recognized an impairment loss of $4.1 related to indefinite-lived trade names within our Industrial Process segment. The impairment loss was the result of the challenging economic conditions within the upstream oil and gas market. The impairment was recorded within general and administrative expenses. Customer relationships, proprietary technology and patents and other intangible assets are amortized over weighted average lives of approximately 12.3 years, 13.2 years and 11.3 years, respectively. The fair value of intangible assets acquired in connection with the purchase of Axtone, include $7.6 of customer relationships and $2.3 of trademarks. These intangible assets will be amortized over their estimated useful lives of 12 years and 10 years, respectively. See Note 21 , Acquisitions , for further information. Amortization expense related to intangible assets for 2017 , 2016 and 2015 was $18.9 , $20.1 and $14.0 , respectively. Estimated amortization expense for each of the five succeeding years is as follows: Year Estimated Amortization Expense 2018 $ 18.1 2019 18.1 2020 17.9 2021 17.9 2022 16.2 Thereafter 40.5 |
Accrued Liabilities and Other N
Accrued Liabilities and Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Non-Current Liabilities | ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES 2017 2016 Compensation and other employee-related benefits $ 147.2 $ 120.5 Asbestos-related liability 77.1 76.8 Customer-related liabilities 45.5 39.9 Accrued income taxes and other tax-related liabilities 36.1 31.0 Environmental and other legal matters 22.8 25.1 Accrued warranty costs 17.0 17.4 Other accrued liabilities 38.7 39.5 Accrued and other current liabilities $ 384.4 $ 350.2 Environmental liabilities $ 63.6 $ 63.2 Compensation and other employee-related benefits 36.4 33.0 Deferred income taxes and other tax-related liabilities 19.3 24.9 Other 56.3 59.9 Other non-current liabilities $ 175.6 $ 181.0 |
Leases and Rentals
Leases and Rentals | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Leases and Rentals | LEASES AND RENTALS ITT leases certain offices, manufacturing buildings, land, machinery, automobiles, computers and other equipment. The majority of leases expire at various dates through 2027 and may include renewal and payment escalation clauses. ITT often pays maintenance, insurance and tax expense related to leased assets. Rental expenses under operating leases were $25.4 , $21.1 and $18.6 for 2017 , 2016 and 2015 , respectively. Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2017 are shown below. 2018 $ 24.8 2019 20.2 2020 17.0 2021 16.6 2022 14.4 2023 and thereafter 58.2 Total minimum lease payments $ 151.2 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT 2017 2016 Commercial Paper $ 162.4 $ 113.5 Short-term loans — 100.0 Current maturities of long-term debt 0.9 0.6 Current capital leases 0.3 0.2 Short-term loans and current maturities of long-term debt 163.6 214.3 Non-current maturities of long-term debt 8.2 1.8 Non-current capital leases 0.1 0.2 Long-term debt and capital leases 8.3 2.0 Total debt and capital leases $ 171.9 $ 216.3 Commercial Paper Commercial paper outstanding was $162.4 and $113.5 , with an associated weighted average interest rate of 2.09% and 1.14% and maturity terms less than one month from the date of issuance as of December 31, 2017 and 2016 , respectively. Short-term Loans On November 25, 2014, we entered into a competitive advance and revolving credit facility agreement (the Revolving Credit Agreement) with a consortium of third party lenders including JP Morgan Chase Bank, N.A., as administrative agent, and Citibank, N.A., as syndication agent. On November 29, 2016, we amended the Revolving Credit Agreement to extend the maturity date from November 25, 2019 to November 25, 2021. The interest rate and fees associated with drawn amounts are unchanged. The Revolving Credit Agreement provides for an aggregate principal amount of up to $500 of (i) revolving extensions of credit (the revolving loans) outstanding at any time, (ii) competitive advance borrowing option which will be provided on an uncommitted competitive advance basis through an auction mechanism (the competitive advances), and (iii) letters of credit in a face amount up to $100 at any time outstanding. Subject to certain conditions, we are permitted to terminate permanently the total commitments and reduce commitments in minimum amounts of $10 . We are also permitted, subject to certain conditions, to request that lenders increase the commitments under the facility by up to $200 for a maximum aggregate principal amount of $700 . Borrowings under the credit facility are available in U.S. dollars, Euros or British pound sterling. At our election, the interest rate per annum applicable to the competitive advances will be obtained from bids in accordance with competitive auction procedures. At our election, interest rate per annum applicable to the revolving loans will be based on either (i) a Eurodollar rate determined by reference to LIBOR, adjusted for statutory reserve requirements, plus an applicable margin or (ii) a fluctuating rate of interest determined by reference to the greatest of (a) the prime rate of JPMorgan Chase Bank, N.A., (b) the federal funds effective rate plus one-half of 1% or (c) the 1-month LIBOR rate, adjusted for statutory reserve requirements, plus 1%, in each case, plus an applicable margin. As of December 31, 2017 , we had no outstanding obligations under the credit facility. As of December 31, 2016 , we had $100 outstanding under the credit facility, with an associated interest rate of 1.87% . The credit facility contains customary affirmative and negative covenants that, among other things, will limit or restrict our ability to: incur additional debt or issue guarantees; create liens; enter into certain sale and lease-back transactions; merge or consolidate with another person; sell, transfer, lease or otherwise dispose of assets; liquidate or dissolve; and enter into restrictive covenants. Additionally, the Revolving Credit Agreement requires us not to permit the ratio of consolidated total indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (leverage ratio) to exceed 3.00 to 1.00 at any time, or the ratio of consolidated EBITDA to consolidated interest expense (interest coverage ratio) to be less than 3.00 to 1.00 . At December 31, 2017 , our interest coverage ratio and leverage ratio were within the prescribed thresholds. In the event of certain ratings downgrades of the Company to a level below investment grade, the direct and indirect significant U.S. subsidiaries of the Company would be required to guarantee the obligations under the credit facility |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Postretirement Benefit Plans | POSTRETIREMENT BENEFIT PLANS Defined Contribution Plans Substantially all of ITT’s U.S. and certain international employees are eligible to participate in a defined contribution plan. ITT sponsors numerous defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. Several of the plans require us to match a percentage of the employee contributions up to certain limits. Company contributions charged to income amounted to $16.7 , $17.3 , and $18.4 for 2017 , 2016 and 2015 , respectively. The ITT Stock Fund, an investment option for certain ITT defined contribution plans, is considered an employee stock ownership plan and, as a result, participants in the ITT Stock Fund may receive dividends in cash or may reinvest such dividends into the ITT Stock Fund. The ITT Stock Fund held approximately 0.2 shares of ITT common stock at December 31, 2017 . Defined Benefit Plans ITT sponsors numerous defined benefit pension plans which have approximately 2,000 active participants; however, most of these plans have been closed to new participants. As of December 31, 2017 , of our total projected benefit obligation, the ITT Consolidated Hourly Pension Plan represented 39% , the ITT Industrial Process Pension Plan represented 35% , other U.S. plans represented 4% and international pension plans represented 22% . The U.S. plans are generally for hourly employees with a flat dollar benefit formula based on years of service. International plan benefits are primarily determined based on participant years of service, future compensation, and age at retirement or termination. ITT also provides health care and life insurance benefits for eligible U.S. employees upon retirement. In some cases, the plan is still open to certain union employees, but for the majority of our businesses these plans are closed to new participants. The majority of the liability pertains to retirees with postretirement medical insurance. Balance Sheet Information Amounts recognized as assets or liabilities in the Consolidated Balance Sheets for postretirement benefit plans reflect the funded status. The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2017 and 2016 . 2017 2016 Pension Other Benefits Total Pension Other Benefits Total Fair value of plan assets $ 321.5 $ 5.2 $ 326.7 $ 263.1 $ 6.1 $ 269.2 Projected benefit obligation 419.0 138.1 557.1 392.2 138.8 531.0 Funded status $ (97.5 ) $ (132.9 ) $ (230.4 ) $ (129.1 ) $ (132.7 ) $ (261.8 ) Amounts reported within: Non-current assets $ 10.3 $ — $ 10.3 $ — $ — $ — Accrued liabilities (4.8 ) (8.6 ) (13.4 ) (3.7 ) (9.5 ) (13.2 ) Non-current liabilities (103.0 ) (124.3 ) (227.3 ) (125.4 ) (123.2 ) (248.6 ) A portion of our projected benefit obligation includes amounts that have not yet been recognized as expense in our results of operations. Such amounts are recorded within accumulated other comprehensive loss until they are amortized as a component of net periodic postretirement cost. The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2017 and 2016 . 2017 2016 Pension Other Benefits Total Pension Other Benefits Total Net actuarial loss $ 141.1 $ 56.3 $ 197.4 $ 154.0 $ 59.6 $ 213.6 Prior service cost (benefit) 2.0 (44.3 ) (42.3 ) 5.1 (50.5 ) (45.4 ) Total $ 143.1 $ 12.0 $ 155.1 $ 159.1 $ 9.1 $ 168.2 The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans and our other employee-related defined benefit plans for the years ended December 31, 2017 and 2016 . 2017 2016 U.S. Int’l Other Benefits Total U.S. Int’l Other Benefits Total Change in benefit obligation Benefit obligation – January 1 $ 312.3 $ 79.9 $ 138.8 $ 531.0 $ 339.9 $ 78.0 $ 143.4 $ 561.3 Service cost 4.6 1.4 0.8 6.8 4.1 1.3 0.9 6.3 Interest cost 10.5 1.6 4.4 16.5 11.9 1.5 4.9 18.3 Amendments 1.6 — 0.4 2.0 — 0.4 — 0.4 Actuarial loss (gain) 19.1 (0.3 ) 1.9 20.7 5.9 4.2 (1.9 ) 8.2 Benefits and expenses paid (22.4 ) (3.0 ) (8.2 ) (33.6 ) (21.5 ) (2.7 ) (8.5 ) (32.7 ) Acquired — 3.5 — 3.5 — — — — Settlement — (0.4 ) — (0.4 ) (28.0 ) (0.5 ) — (28.5 ) Curtailment — — — — — (0.2 ) — (0.2 ) Foreign currency translation — 10.6 — 10.6 — (2.1 ) — (2.1 ) Benefit obligation – December 31 $ 325.7 $ 93.3 $ 138.1 $ 557.1 $ 312.3 $ 79.9 $ 138.8 $ 531.0 The following table provides a rollforward of our U.S. and international pension plan and other employee-related defined benefit plan assets and the funded status as of and for the years ended December 31, 2017 and 2016 . 2017 2016 U.S. Int’l Other Benefits Total U.S. Int’l Other Benefits Total Change in plan assets Plan assets – January 1 $ 262.2 $ 0.9 $ 6.1 $ 269.2 $ 278.1 $ 0.9 $ 7.9 $ 286.9 Actual return on plan assets 45.2 — 1.2 46.4 24.0 — 0.5 24.5 Employer contributions 35.9 3.0 6.1 45.0 9.6 3.2 6.2 19.0 Benefits and expenses paid (22.4 ) (3.0 ) (8.2 ) (33.6 ) (21.5 ) (2.7 ) (8.5 ) (32.7 ) Settlement — (0.4 ) — (0.4 ) (28.0 ) (0.5 ) — (28.5 ) Foreign currency translation — 0.1 — 0.1 — — — — Plan assets – December 31 $ 320.9 $ 0.6 $ 5.2 $ 326.7 $ 262.2 $ 0.9 $ 6.1 $ 269.2 Funded status at end of year $ (4.8 ) $ (92.7 ) $ (132.9 ) $ (230.4 ) $ (50.1 ) $ (79.0 ) $ (132.7 ) $ (261.8 ) The accumulated benefit obligation for all defined benefit pension plans was $416.7 and $389.4 at December 31, 2017 and 2016 , respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets is included in the following table. 2017 2016 Projected benefit obligation $ 107.8 $ 391.6 Accumulated benefit obligation 105.4 388.8 Fair value of plan assets — 262.2 Statements of Operations Information The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2017 , 2016 and 2015 as they pertain to our defined benefit pension plans. 2017 2016 2015 U.S. Int’l Total U.S. Int’l Total U.S. Int’l Total Net periodic postretirement cost - pension Service cost $ 4.6 $ 1.4 $ 6.0 $ 4.1 $ 1.3 $ 5.4 $ 3.5 $ 1.5 $ 5.0 Interest cost 10.5 1.6 12.1 11.9 1.5 13.4 13.0 1.5 14.5 Expected return on plan assets (18.3 ) — (18.3 ) (20.1 ) — (20.1 ) (20.8 ) — (20.8 ) Amortization of net actuarial loss 6.6 1.0 7.6 7.1 0.7 7.8 7.5 1.0 8.5 Amortization of prior service cost 1.0 — 1.0 0.9 — 0.9 1.0 — 1.0 Net periodic postretirement cost 4.4 4.0 8.4 3.9 3.5 7.4 4.2 4.0 8.2 Curtailment or settlement charges 3.7 — 3.7 12.7 — 12.7 — 0.1 0.1 Total net periodic postretirement cost 8.1 4.0 12.1 16.6 3.5 20.1 4.2 4.1 8.3 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss (7.9 ) (0.3 ) (8.2 ) 2.1 4.0 6.1 13.9 (2.9 ) 11.0 Prior service cost 1.6 — 1.6 — 0.4 0.4 — — — Amortization of net actuarial (loss) gain (6.6 ) (1.0 ) (7.6 ) (19.8 ) (0.7 ) (20.5 ) (7.5 ) (1.1 ) (8.6 ) Amortization of prior service cost (4.7 ) — (4.7 ) (0.9 ) — (0.9 ) (1.0 ) — (1.0 ) Foreign currency translation — 2.9 2.9 — (0.5 ) (0.5 ) — (2.5 ) (2.5 ) Total change recognized in other comprehensive income (17.6 ) 1.6 (16.0 ) (18.6 ) 3.2 (15.4 ) 5.4 (6.5 ) (1.1 ) Total impact from net periodic postretirement cost and changes in other comprehensive income $ (9.5 ) $ 5.6 $ (3.9 ) $ (2.0 ) $ 6.7 $ 4.7 $ 9.6 $ (2.4 ) $ 7.2 In the third quarter of 2017, we recorded a curtailment loss of $3.7 related to a freeze of benefit accruals for certain employees at our Industrial Process segment. During 2016, we recognized a non-cash pretax pension settlement charge of $12.7 as the result of a program offering certain former U.S. employees with a vested pension benefit an option to take a one-time lump sum distribution as part of ITT's overall plan to de-risk its pension plans. Approximately 1,100 participants accepted the offer, resulting in a payment of $28.0 from the plan and a reduction in the Company's projected benefit obligation of $26.6 , including an actuarial loss of $1.4 . The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2017 , 2016 and 2015 as they pertain to other employee-related defined benefit plans. 2017 2016 2015 Net periodic postretirement cost - other postretirement Service cost $ 0.8 $ 0.9 $ 0.9 Interest cost 4.4 4.9 5.0 Expected return on plan assets (0.3 ) (0.5 ) (0.9 ) Amortization of net actuarial loss 4.4 4.6 4.6 Amortization of prior service credit (5.8 ) (6.5 ) (11.0 ) Net periodic postretirement cost (benefit) 3.5 3.4 (1.4 ) Gain due to curtailment — — (4.2 ) Total net periodic postretirement cost (benefit) 3.5 3.4 (5.6 ) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss 1.0 (1.9 ) 7.7 Prior service cost 0.5 — — Amortization of net actuarial loss (4.4 ) (4.6 ) (4.6 ) Amortization of prior service credit 5.8 6.5 11.0 Acceleration of prior service costs — — 6.2 Total changes recognized in other comprehensive income 2.9 — 20.3 Total impact from net periodic postretirement cost and changes in other comprehensive income $ 6.4 $ 3.4 $ 14.7 During 2015, we recognized a benefit of $4.2 from a curtailment gain related to a reduction in force in our CCT segment. The following table provides the estimated net actuarial loss and prior service cost that is expected to be amortized from accumulated other comprehensive loss into net periodic postretirement cost during 2018 . Pension Other Benefits Total Net actuarial loss $ 5.9 $ 4.3 $ 10.2 Prior service cost (credit) 0.9 (5.3 ) (4.4 ) Total $ 6.8 $ (1.0 ) $ 5.8 Postretirement Plan Assumptions The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental and developed in consultation with external advisors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Periodically, the Company performs experience studies to validate certain actuarial assumptions such as age of retirement, rates of turnover, utilization of optional forms of payments. In 2015, the Company performed such study for its U.S. pension plans and reflected the results in its valuation. The actuarial assumptions are based on the provisions of the applicable accounting pronouncements, review of various market data and discussion with our external advisors. Assumptions are reviewed annually and adjusted as necessary. Changes in these assumptions could materially affect our financial statements. The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to our U.S. and non-U.S. defined benefit pension plans and other employee-related defined benefit plans. 2017 2016 U.S. Int’l Other Benefits U.S. Int’l Other Benefits Obligation Assumptions: Discount rate 3.6 % 1.7 % 3.6 % 4.2 % 1.7 % 4.1 % Rate of future compensation increase N/A 3.3 % N/A N/A 3.4 % N/A Cost Assumptions: Discount rate 4.2 % 1.7 % 4.1 % 4.3 % 2.3 % 4.1 % Expected return on plan assets 7.0 % 1.0 % 7.0 % 7.2 % 4.8 % 7.2 % The discount rate is used to calculate the present value of expected future benefit payments at the measurement date. The discount rate assumption is based on current investment yields of high-quality fixed income investments during the retirement benefits maturity period. The pension discount rate is determined by considering an interest rate yield curve comprising AAA/AA bonds, with maturities that are generally between zero and thirty years, developed by the plan's actuaries. Annual benefit payments are then discounted to present value using this yield curve to develop a single discount rate matching the plan's characteristics. Effective as of December 31, 2015, we changed the approach used to estimate the service and interest components of net periodic benefit cost of the U.S. defined benefit plans. This estimation approach discounts the individual expected cash flows underlying the service cost and interest cost using the applicable spot rates from the yield curve used to discount the cash flows in measuring the benefit obligation. Historically, we estimated these service and interest cost components utilizing a single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. The impact of this change was not material. The rate of future compensation increase assumption for foreign plans reflects our long-term actual experience and future and near-term outlook. The rate of future compensation increase assumption is not applicable for U.S. plans because the benefit formula is based on a flat dollar benefit and years of service approach. The Company has updated the mortality assumption to reflect the most recent projection update. The assumed rate of future increases in the per capita cost of health care (the health care trend rate) is 7.0% for pre-age 65 retirees and 6.5% for post-age 65 retirees for 2018 , decreasing ratably to 4.5% in 2026 . Increasing the health care trend rates by one percent per year would have the effect of increasing the benefit obligation by $7.5 and the aggregate annual service and interest cost components by $0.3 . A decrease of one percent in the health care trend rate would reduce the benefit obligation by $6.4 and the aggregate annual service and interest cost components by $0.3 . To the extent that actual experience differs from these assumptions, the effect will be amortized over the average future working life or life expectancy of the plan participants. The expected long-term rate of return on assets reflects the expected returns for each major asset class in which the plans invest, the weight of each asset class in the target mix, the correlations among asset classes, and their expected volatilities. Our expected return on plan assets is estimated by evaluating both historical returns and estimates of future returns based on our target asset allocation. Specifically, we estimate future returns based on independent estimates of asset class returns weighted by the target investment allocation. The chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year. 2017 2016 2015 Expected rate of return on plan assets 7.0 % 7.2 % 8.0 % Actual rate of return on plan assets 18.0 % 9.2 % (2.8 )% For the recognition of net periodic postretirement cost, the calculation of the expected return on plan assets is generally derived using a market-related value of plan assets based on average asset values at the measurement date over the last five years. The use of fair value, rather than a market-related value, of plan assets could materially affect net periodic postretirement cost. Investment Policy The investment strategy for managing worldwide postretirement benefit plan assets is to seek an optimal rate of return relative to an appropriate level of risk for each plan. Investment strategies vary by plan, depending on the specific characteristics of the plan, such as plan size and design, funded status, liability profile and legal requirements. During 2015, our investment policy was updated to reduce risk by increasing the target allocation in fixed income by approximately 15 percentage points with a corresponding decrease in allocations to equity investments. During 2017, the investment policy was further updated to reduce risk by increasing the target allocation in fixed income by approximately 20 percentage points. Our current target allocation is 30% equity investment and 70% fixed income. Based on this approach, the long-term annual rate of return on assets was estimated at 7.0% and 7.2% for fiscal 2017 and 2016, respectfully. In fiscal 2018, we expect our estimate of the long term annual return on assets to be 6.0% for the U.S. defined benefit plans reflecting the current asset allocation. Substantially all of the postretirement benefit plan assets are managed on a commingled basis in a master investment trust. With respect to the master investment trust, the Company allows itself broad discretion to invest tactically to respond to changing market conditions, while staying reasonably within the target asset allocation ranges prescribed by its investment guidelines. In making these asset allocation decisions, the Company takes into account recent and expected returns and volatility of returns for each asset class, the expected correlation of returns among the different investments, as well as anticipated funding and cash flows. To enhance returns and mitigate risk, the Company diversifies its investments by strategy, asset class, geography and sector. The following table provides the allocation of postretirement benefit plan assets by asset category, as of December 31, 2017 and 2016 , and the current asset allocation ranges by asset category. 2017 2016 Asset Allocation Range U.S. equities 22 % 26 % 0-50 % International equities 8 % 22 % 0-25 % Fixed income 68 % 51 % 50-100 % Cash and other 2 % 1 % 0-10 % Fair Value of Plan Assets In measuring plan assets at fair value, a fair value hierarchy is applied which categorizes and prioritizes the inputs used to estimate fair value into three levels. The fair value hierarchy is based on maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. Classification within the fair value hierarchy is based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices (in non-active markets or in active markets for similar assets or liabilities), inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 inputs are unobservable inputs for the assets or liabilities. Collective trusts are valued at NAV as a practical expedient and thus are not leveled in this table, but are included in the totals column to assist in reconciling to fair value of plan assets. Mutual funds are valued at quoted market prices that represent the net asset value (NAV) of shares and are classified within level 1 of the fair value hierarchy. Cash and cash equivalents are held in money market or short-term investment funds and are classified within level 1 of the fair value hierarchy. The following table provides the investments at fair value held by our postretirement benefit plans at December 31, 2017 and 2016 , by asset class. Pension Other Benefits 2017 Level 1 Measured at NAV Total Level 1 Total Collective Trusts: U.S. equity $ — $ 70.6 $ 70.6 $ — $ — International equity — 26.6 26.6 — — Fixed income — 218.7 218.7 — — Mutual funds — — — 5.2 5.2 Cash and other 5.6 — 5.6 — — Total $ 5.6 $ 315.9 $ 321.5 $ 5.2 $ 5.2 Pension Other Benefits 2016 Level 1 Measured at NAV Total Level 1 Total Collective Trusts: U.S. equity $ — $ 67.4 $ 67.4 $ — $ — International equity — 58.9 58.9 — — Fixed income — 135.0 135.0 — — Mutual funds — — — 6.1 6.1 Cash and other 1.8 — 1.8 — — Total $ 1.8 $ 261.3 $ 263.1 $ 6.1 $ 6.1 Contributions While we make contributions to our postretirement benefit plans when considered necessary or advantageous to do so, the minimum funding requirements established by local government funding or taxing authorities, or established by other agreements, may influence future contributions. Funding requirements under IRS rules are a major consideration in making contributions to our defined benefit pension plans in the U.S. In addition, we fund certain of our international pension plans in countries where funding is allowable and tax-efficient. During 2017 and 2016 , we contributed $38.9 and $12.8 to our global pension plans, respectively. The 2017 and 2016 contributions included a $35.0 and $7.8 discretionary contribution to our U.S. pension plans, respectively. We anticipate making contributions to our global pension plans of approximately $5 during 2018 . We contributed $6.1 and $6.2 to our other employee-related defined benefit plans during 2017 and 2016 , respectively. We estimate that the 2018 contributions to our other employee-related defined benefit plans will be approximately $8 . Estimated Future Benefit Payments The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans. U.S. Pension Int’l Pension Other Benefits 2018 $ 24.9 $ 3.9 $ 10.8 2019 24.2 3.6 10.4 2020 23.1 4.4 10.2 2021 22.8 3.9 10.0 2022 22.3 4.2 9.5 2023 - 2027 103.2 19.5 41.7 |
Long-Term Incentive Employee Co
Long-Term Incentive Employee Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Employee Compensation | LONG-TERM INCENTIVE EMPLOYEE COMPENSATION The 2011 Omnibus Incentive Plan (2011 Incentive Plan) was approved by shareholders and established in May of 2011 to provide for the awarding of options on common shares and full value restricted common shares or units to employees and non-employee directors. The number of shares initially available for issuance to participants under the 2011 Incentive Plan was 4.6 . The 2011 Incentive Plan replaced the ITT Amended and Restated 2003 Equity Incentive Plan (2003 Incentive Plan) on a prospective basis and no future grants will be made under the 2003 Incentive Plan. However, any shares remaining available for issuance under the 2003 Incentive Plan became available for grant under the 2011 Incentive Plan as of the date the 2011 Incentive Plan was approved by shareholders. As of December 31, 2017 , 38.2 shares were available for future grants under the 2011 Incentive Plan. ITT makes shares available for the exercise of stock options or vesting of restricted shares or units by purchasing shares in the open market. Our long-term incentive plan (LTIP) is comprised of two components: restricted stock units (RSUs) and performance unit awards (PSUs). Prior to 2017, our LTIP also included non-qualified stock options (NQOs). The majority of RSUs settle in shares; however RSUs and PSUs granted to international employees are settled in cash. We account for NQOs and equity-settled RSUs and PSUs as equity-based compensation awards and cash-settled RSUs and PSUs are accounted for as liability-based awards. PSUs granted prior to 2016 were based on both a relative total shareholder return (TSR) metric as well as a return on invested capital (ROIC) metric, equally weighted. In 2017 and 2016, PSUs granted were based on a relative TSR and relative ROIC metric, equally weighted. PSUs settle in shares, dependent upon performance, following a three-year performance period to further align payouts with stock price performance. PSUs are accounted for as two distinct awards, an ROIC award and a TSR award. LTIP costs are primarily recorded within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis and are reduced by forfeitures as they occur. These costs impacted our consolidated results of operations as follows: 2017 2016 2015 Share-based compensation expense, equity-based awards $ 18.1 $ 12.6 $ 15.7 Share-based compensation expense, liability-based awards 2.8 1.8 1.1 Total share-based compensation expense in operating income $ 20.9 $ 14.4 $ 16.8 At December 31, 2017 , there was $17.1 of total unrecognized compensation cost related to non-vested equity awards. This cost is expected to be recognized ratably over a weighted-average period of 1.8 years. Additionally, unrecognized compensation cost related to liability-based awards was $2.9 , which is expected to be recognized ratably over a weighted-average period of 1.8 years. Non-Qualified Stock Options Options generally vest over or at the conclusion of a 3 -year period and are exercisable over 10 years, except in certain instances of death, retirement or disability. The exercise price per share is the fair market value of the underlying common stock on the date each option is granted. A summary of the status of our NQOs as of December 31, 2017 , 2016 and 2015 and changes during the years then ended is presented below. 2017 2016 2015 Stock Options Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding – January 1 1.4 $ 30.57 1.7 $ 27.10 1.9 $ 24.20 Granted — — 0.4 33.01 0.2 41.52 Exercised (0.5 ) 22.95 (0.6 ) 20.88 (0.3 ) 19.87 Canceled or expired — — (0.1 ) 39.03 (0.1 ) 35.95 Outstanding – December 31 0.9 $ 34.07 1.4 $ 30.57 1.7 $ 27.10 Options exercisable – December 31 0.5 $ 32.24 0.8 $ 24.41 1.1 $ 21.75 The aggregate intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during 2017 , 2016 and 2015 was $10.6 , $9.6 and $6.6 , respectively. The amount of cash received from the exercise of stock options was $11.2 , $12.3 and $6.2 for 2017 , 2016 and 2015 , respectively. The income tax benefit realized during 2017 , 2016 and 2015 associated with stock option exercises and lapses of restricted stock was $7.0 , $10.5 and $6.3 , respectively. In 2017, we adopted new guidance prospectively which classifies cash flows attributable to excess tax benefits arising from stock option exercises and restricted stock lapses as an operating activity. In 2016 and 2015, we classified the cash flows attributable to excess tax benefits as a financing activity. Excess tax benefits arising from stock option exercises and restricted stock lapses were $2.7 , $3.2 and $3.4 for 2017 , 2016 and 2015 , respectively. The following table summarizes information about ITT’s stock options at December 31, 2017 : Options Outstanding Options Exercisable Exercise Prices Number Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Number Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Less than $23.00 0.1 3.5 3.4 0.1 3.5 3.4 $26.76 0.1 5.2 4.2 0.1 5.2 4.2 $33.01 0.3 8.1 6.1 0.1 8.1 0.6 $41.52 0.2 7.2 2.2 0.1 7.2 0.4 $43.52 0.2 6.2 1.4 0.1 6.2 1.4 0.9 6.5 $ 17.3 0.5 5.4 $ 10.0 The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on ITT’s closing stock price of $53.37 as of December 31, 2017 , which would have been received by the option holders had all option holders exercised their options as of that date. There were no options "out-of-the-money" as of December 31, 2017 . Substantially all options outstanding as of December 31, 2017 are expected to vest. The fair value of each option grant was estimated on the date of grant using the binomial lattice pricing model which incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. There were no NQOs granted in 2017. The following are weighted-average assumptions for 2016 and 2015 : 2016 2015 Dividend yield 1.5 % 1.1 % Expected volatility 32.2 % 29.4 % Expected life (in years) 6.0 5.8 Risk-free rates 1.5 % 1.7 % Weighted-average grant date fair value $ 9.16 $ 11.23 Expected volatilities for option grants were based on a peer average of historical and implied volatility. ITT uses historical data to estimate option exercise and employee termination behavior within the valuation model. The expected life assumption represents an estimate of the period of time options are expected to remain outstanding. The expected life provided above represents the weighted average of expected behavior for two separate groups of employees who have historically exhibited different behavior. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of option grant. Restricted Stock Units and Performance Units The fair value of equity-settled restricted stock units is determined using the closing price of the Company’s common stock on date of grant. The fair value of cash-settled RSUs is remeasured using the closing price of the Company's common stock at the end of each reporting period. Recipients do not have voting rights and do not receive cash dividends during the restriction period. Dividend equivalents on RSUs, which are subject to forfeiture, are accrued and paid in cash upon vesting of the RSU, which typically occurs three years from the date of grant. If an employee retires or is terminated other than for cause, a pro rata portion of the RSU may vest. The fair value of the ROIC awards was based on the closing price of ITT common stock on the date of grant less the present value of expected dividend payments during the vesting period. A dividend yield of 1.23% was assumed based on ITT's annualized dividend payment of $0.512 per share and the February 23, 2017 closing stock price of $41.68 . The fair value of the ROIC award is fixed on the grant date; however, a probability assessment is performed each reporting period to estimate the likelihood of achieving the ROIC targets and the amount of compensation to be recognized. The ROIC award payout is subject to a payout factor which includes a maximum and minimum payout. The fair value of the TSR award was measured using a Monte Carlo simulation on the date of grant, measuring potential total shareholder return for ITT relative to the other companies in the S&P 400 Capital Goods Index (the TSR Performance Group). The expected volatility of ITT's stock price was based on the historical volatility of a peer group while expected volatility for the other companies in the TSR Performance Group was based on their own stock price history. All volatility and correlation measures were based on three years of daily historical price data through February 22, 2017, corresponding to the three-year performance period of the award. The TSR award payout is subject to a multiplier which includes a maximum and minimum payout. As the grant date occurs after the beginning of the performance period, actual TSR performance between the beginning of the performance period (December average closing stock price) and the grant date was reflected in the valuation. A dividend yield of 1.23% was assumed based on ITT's annualized dividend payment of $0.512 per share and the February 23, 2017 closing stock price of $41.68 . The table below provides a rollforward of outstanding RSUs and PSUs for each of the years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Restricted Stock and Performance Units Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding – January 1 1.1 $ 38.24 1.3 $ 36.56 1.1 $ 31.70 Granted 0.5 42.52 0.5 33.28 0.5 41.34 Performance adjustment (a) — — (0.1 ) 45.47 0.1 29.59 Lapsed (0.2 ) 41.42 (0.5 ) 29.86 (0.3 ) 24.09 Canceled (0.2 ) 41.75 (0.1 ) 39.20 (0.1 ) 35.89 Outstanding – December 31 1.2 $ 38.74 1.1 $ 38.24 1.3 $ 36.56 Vested pending issuance 0.1 $ 42.90 — $ — 0.3 $ 29.59 (a) Represents the adjustment to the number of shares to be issued above or below target for performance results achieved relative to PSUs granted in 2015 that vested on December 31, 2017, PSUs granted in 2014 that vested on December 31, 2016 and PSUs granted in 2013 that vested on December 31, 2015. The table below provides the number of the outstanding equity settled RSUs, cash settled RSUs, and PSUs as of December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Equity settled RSUs 0.7 0.7 0.7 Cash settled RSUs 0.1 0.1 0.1 PSU awards 0.4 0.3 0.5 As of December 31, 2017, substantially all RSUs outstanding are expected to vest. As of December 31, 2017, the total number of PSUs expected to vest based on current performance estimates, including those vested but pending issuance, was 0.3 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | CAPITAL STOCK ITT has authority to issue an aggregate of 300 shares of capital stock, of which 250 shares have been designated as Common Stock having a par value of $1 per share and 50 shares have been designated as Preferred Stock not having any par or stated value. There was no Preferred Stock outstanding as of December 31, 2017 and 2016 . The stockholders of ITT common stock are entitled to receive dividends when and as declared by ITT’s Board of Directors. Dividends are paid quarterly. Dividends declared were $0.512 , $0.496 and $0.4732 per common share in 2017 , 2016 , and 2015 , respectively. On October 27, 2006, a three-year $1 billion share repurchase program (Share Repurchase Program) was approved by our Board of Directors. On December 16, 2008, the provisions of the Share Repurchase Program were modified by our Board of Directors to replace the original three-year term with an indefinite term. During 2017 , 2016 , and 2015 , we repurchased 0.8 shares, 2.0 shares, and 2.0 shares of common stock for $30.0 , $70.0 and $80.0 , respectively. Through December 2017 , we had repurchased 21.2 shares for $859.4 , including commissions, under the Share Repurchase Program. Separate from the Share Repurchase Program, the Company repurchased 0.1 shares, 0.2 shares, and 0.1 shares for an aggregate price of $2.9 , $7.8 , and $4.0 , during 2017 , 2016 and 2015 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, we are involved in litigation, claims, government inquiries, investigations and proceedings, including but not limited to those relating to environmental exposures, intellectual property matters, personal injury claims, regulatory matters, commercial and government contract issues, employment and employee benefit matters, commercial or contractual disputes, and securities matters. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have any material adverse impact on our financial statements, unless otherwise noted below. However, there can be no assurance that an adverse outcome in any of the proceedings described below will not result in material fines, penalties or damages, changes to the Company's business practices, loss of (or litigation with) customers or a material adverse effect on our financial statements. Asbestos Matters Subsidiaries of ITT, including ITT LLC and Goulds Pumps LLC, have 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 our subsidiaries prior to 1985 contained a part manufactured by a third party (e.g., a gasket) which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. As of December 31, 2017 , there were 26 thousand pending active claims against ITT subsidiaries, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: (in thousands) 2017 2016 2015 Pending claims – Beginning 30 37 62 New claims 4 4 4 Settlements (2 ) (1 ) (1 ) Dismissals (6 ) (10 ) (28 ) Pending claims – Ending 26 30 37 Frequently, plaintiffs are unable to identify any ITT LLC or Goulds Pumps LLC products as a source of asbestos exposure. Our experience to date is that a majority of resolved claims are dismissed without any payment from ITT subsidiaries. Management believes that a large majority of the pending claims have little or no value. In addition, because claims are sometimes dismissed in large groups, the average cost per resolved claim, as well as the number of open claims, can fluctuate significantly from period to period. ITT expects more asbestos-related suits will be filed in the future, and ITT will aggressively defend or seek a reasonable resolution, as appropriate. Estimating the Liability and Related Asset The Company records an asbestos liability, including legal fees, for costs estimated to be incurred to resolve all pending claims, as well as unasserted claims estimated to be filed against the Company over the next 10 years . The asbestos liability has not been discounted to present value due to an inability to reliably forecast the timing of future cash flows. The methodology used to estimate our asbestos liability for pending claims and claims estimated to be filed over the next 10 years relies on and includes the following: • interpretation of a widely accepted forecast of the population likely to have been exposed to asbestos in the workplace; • widely accepted epidemiological studies estimating the number of people likely to develop mesothelioma and lung cancer from exposure to asbestos; • the Company’s historical experience with the filing of non-malignant claims against it and the historical relationship between non-malignant and malignant claims filed against the Company; • analysis of the number of likely asbestos personal injury claims to be filed against the Company based on such epidemiological and historical data and the Company’s recent claims experience; • analysis of the Company’s pending cases, by disease type; • analysis of the Company’s recent experience to determine the average settlement value of claims, by disease type; • analysis of the Company's recent experience in the ratio of settled claims to total resolved claims, by disease type; • analysis of the Company’s defense costs in relation to its indemnity costs and agreements in place with external counsel; • adjustment for inflation in the average settlement value of claims and defense costs estimated to be paid in the future; and • analysis of the Company’s recent experience with regard to the length of time to resolve asbestos claims. Asbestos litigation is a unique form of litigation. Frequently, the plaintiff sues a large number of defendants and does not state a specific claim amount. After filing of the complaint, the plaintiff engages defendants in settlement negotiations to establish a settlement value based on certain criteria, including the number of defendants in the case. Rarely do the plaintiffs seek to collect all damages from one defendant. Rather, they seek to spread the liability, and thus the payments, among many defendants. As a result, the Company is unable to estimate the maximum potential exposure to pending claims and claims estimated to be filed over the next 10 years. The forecast period used to estimate our potential liability to pending and projected asbestos claims is a judgment based on a number of factors, including the number and type of claims filed, recent experience with pending claims activity and whether that experience is expected to continue into the future, the jurisdictions where claims are filed, the effect of any legislative or judicial developments, and the likelihood of any comprehensive asbestos legislation at the federal level. These factors have both positive and negative effects on the dynamics of asbestos litigation in the tort system and, accordingly, our estimate of the asbestos exposure. Developments related to asbestos tend to be long-cycle, changing over multi-year periods. Accordingly, we monitor these and other factors and periodically assess whether an alternative forecast period is appropriate. The Company retains a consulting firm to assist management in estimating the potential liability for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the methodology described above. Our methodology determines a point estimate based on our assessment of the value of each underlying assumption, rather than a range of reasonably possible outcomes. Projecting future asbestos costs is subject to numerous variables and uncertainties that are inherently difficult to predict. In addition to the uncertainties surrounding the key assumptions discussed above, additional uncertainty related to asbestos claims and estimated costs arises from the long latency period prior to the manifestation of an asbestos-related disease, changes in available medical treatments and changes in medical costs, changes in plaintiff behavior resulting from bankruptcies of other companies that are or could be co-defendants, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, and the impact of potential legislative or judicial changes. At December 31, 2017 , approximately 23% of the recorded asbestos liability relates to pending claims, with the remainder relating to claims estimated to be filed over the next 10 years. We record a corresponding undiscounted asbestos-related asset that represents our best estimate of probable recoveries from our insurers for the estimated asbestos liabilities. In developing this estimate, the Company considers coverage-in-place and other agreements with its insurers, as well as a number of additional factors. These additional factors reviewed include the financial viability of our insurance carriers and any related solvency issues, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, the extent to which settlement and defense costs will be reimbursed by the insurance policies and interpretation of the various policy and contract terms and limits and their interrelationships, and various judicial determinations relevant to our insurance programs. The timing and amount of reimbursements will vary due to a time lag between when ITT pays an amount to defend or settle a claim and when a reimbursement is received from an insurer, differing policy terms and certain gaps in our insurance coverage as a result of uninsured periods, insurer insolvencies, and prior insurance settlements. Approximately 77% of our estimated receivables are due from insurers that had credit ratings of A- or better from A.M. Best as of December 31, 2017 . In addition, the Company retains an insurance consulting firm to assist management in estimating probable recoveries for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the analysis of policy terms, the likelihood of recovery provided by external legal counsel, and incorporating risk mitigation judgments where policy terms or other factors are not certain. The aggregate amount of insurance available to the Company for asbestos-related claims was acquired over many years and from many different carriers. Amounts deemed not recoverable generally are due from insurers that are insolvent, or result from disagreements with the insurers over policy terms, coverage limits or coverage disputes. Such limitations in our insurance coverage are expected to result in projected payments to claimants substantially exceeding the probable insurance recovery. The Company has negotiated with certain of its insurers to reimburse the Company for a portion of its indemnity and defense costs through "coverage-in-place" agreements or policy buyout agreements. The agreements are designed to facilitate the collection of ITT’s insurance portfolio, to mitigate issues that insurers may raise regarding their responsibility to respond to claims, and to promote an orderly exhaustion of the policies. As of December 31, 2017 , approximately 42% of our asbestos-related assets were related to coverage-in-place agreements and buyout agreements with insurers. After reviewing our portfolio of insurance policies, with consideration given to applicable deductibles, retentions and policy limits, the solvency and historical payment experience of various insurance carriers, existing insurance settlements, and the advice of outside counsel with respect to the applicable insurance coverage law relating to the terms and conditions of its insurance policies, ITT believes that its recorded receivable for insurance recoveries is probable of collection. Estimating our exposure to pending asbestos claims and those that may be filed in the future is subject to significant uncertainty and risk as there are multiple variables that can affect the timing, severity, quality, quantity and resolution of claims. Any predictions with respect to the variables impacting the estimate of the asbestos liability and related asset are subject to even greater uncertainty as the projection period lengthens. In light of the uncertainties and variables inherent in the long-term projection of the Company’s asbestos exposures, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years which could be material to the financial statements, we do not believe there is a reasonable basis for estimating those costs at this time. The asbestos liability and related receivables reflect management’s best estimate of future events. However, future events affecting the key factors and other variables for either the asbestos liability or the related receivables could cause actual costs or recoveries to be materially higher or lower than currently estimated. Due to these uncertainties, as well as our inability to reasonably estimate any additional asbestos liability for claims which may be filed beyond the next 10 years, it is 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. Settlement Agreements During 2016 and 2015, ITT entered into settlement agreements with insurers to settle responsibility for multiple insurance claims. Under the terms of the settlements, the insurers agreed to a payment or specified series of payments to a QSF, resulting in a net loss of $2.1 and a benefit of $8.9 , respectively. Defense Strategy Cost Adjustment During 2015, the Company changed its asbestos defense strategy and retained a single firm to defend the Company in all asbestos litigation. This long-term strategy streamlined the Company’s management of cases and significantly reduced defense costs. Our agreement with the defense firm was initially limited to a certain set of claims and the remaining claims were expected to transition within the next four years; however, the Company was able to transition the remaining claims during the second quarter of 2016 as a result of one of the settlements described above. Based on the terms of the agreement, the Company adjusted its asbestos liability and related assets and recognized a net benefit of $4.9 and $100.7 in 2016 and 2015, respectively, for the revised estimate of the cost to defend pending claims and claims expected to be filed over the next 10 years. Statements of Operations Charges The table below summarizes the total net asbestos charge for the years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Asbestos provision $ 56.5 $ 59.0 $ 63.0 Asbestos remeasurement, net (76.4 ) (81.8 ) (44.8 ) Defense cost adjustment — (4.9 ) (100.7 ) Settlement agreements — 2.1 (8.9 ) Asbestos-related benefit, net $ (19.9 ) $ (25.6 ) $ (91.4 ) Changes in Financial Position The following table provides a rollforward of the estimated asbestos liability and related assets for the years ended December 31, 2017 and 2016 . 2017 2016 Liability Asset Net Liability Asset Net Balance as of January 1 $ 954.3 $ 380.6 $ 573.7 $ 1,042.8 $ 412.0 $ 630.8 Asbestos provision 67.1 10.6 56.5 68.8 9.8 59.0 Asbestos remeasurement (66.4 ) 10.0 (76.4 ) (75.9 ) 5.9 (81.8 ) Settlement agreements — — — — (2.1 ) 2.1 Defense cost adjustment — — — (4.9 ) — (4.9 ) Net cash activity and other (77.8 ) (32.5 ) (45.3 ) (76.5 ) (45.0 ) (31.5 ) Balance as of December 31 $ 877.2 $ 368.7 $ 508.5 $ 954.3 $ 380.6 $ 573.7 Current portion 77.1 64.7 76.8 66.0 Noncurrent portion 800.1 304.0 877.5 314.6 Environmental Matters 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. Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. The following table provides a rollforward of the estimated current and long-term environmental liability for the years ended December 31, 2017 and 2016 . 2017 2016 Balance as of January 1 $ 76.6 $ 82.6 Changes in estimates for pre-existing accruals (a) 8.8 5.9 Net cash activity (11.7 ) (11.9 ) Foreign currency 0.2 — Balance as of December 31 $ 73.9 $ 76.6 (a) Changes in estimates for pre-existing accruals includes environmental-related costs of $3.7 and a reversal of prior accruals of $0.7 reported within results of discontinued operations for the years ended December 31, 2017 and 2016 , respectively. Environmental-related assets represent estimated recoveries from insurance providers and other third parties. 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 future environmental expenses associated with remediation sites covered under the policy, including sites owned by a former subsidiary of the Company. The Company recorded $23.0 of deferred income related to the settlement representing the excess of QSF monies over the probable liabilities associated with the covered remediation sites. During the first quarter of 2017, ITT entered into a settlement agreement with a former subsidiary to settle all claims covered by the environmental QSF. The former subsidiary no longer has rights to the funds in the QSF. The settlement resulted in a reduction to both our environmental-related asset and the corresponding deferred income liability balance of $5.2 . During the second quarter of 2017, the QSF was amended resulting in income of $3.8 . The total environmental-related asset as of December 31, 2017 and 2016 was $24.5 and $33.4 , respectively. The following table illustrates the reasonably possible high range of estimated liability, and number of active sites for environmental matters. 2017 2016 High end range $ 126.3 $ 127.6 Number of active environmental investigation and remediation sites 36 39 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 received a civil subpoena from the Department of Defense, Office of the Inspector General, in the second quarter of 2015 as part of an investigation being led by the Civil Division of the U.S. Department of Justice (DOJ). The subpoena and related investigation involve certain connector products manufactured by the Company’s Connect & Control Technologies segment that are purchased or used by the U.S. government. In addition, in the third quarter of 2017, the Company learned that the Criminal Division of DOJ is also investigating this matter. The Company is cooperating with the government and has produced documents responsive to the subpoena to the Civil Division. Based on its current analysis following discussions with DOJ to resolve the civil matter, the Company has accrued $5 |
Guarantees, Indemnities and War
Guarantees, Indemnities and Warranties | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
Guarantees, Indemnities and Warranties | GUARANTEES, INDEMNITIES AND WARRANTIES Indemnities Since our founding in 1920, we have acquired and disposed of numerous entities. The related acquisition and disposition agreements allocate certain assets and liabilities among the parties and contain various representation and warranty clauses and may provide indemnities for a misrepresentation or breach of the representations and warranties by either party or for assumed or excluded liabilities. These provisions address a variety of subjects. The term and monetary amounts of each such provision are defined in the specific agreements and may be affected by various conditions and external factors. Many of the provisions have expired either by operation of law or as a result of the terms of the agreement. We do not have a liability recorded for these expired provisions and are not aware of any claims or other information that would give rise to material payments under such provisions. As part of the 2011 spin-off, ITT LLC agreed to assume certain liabilities and provide certain indemnifications and cross-indemnifications among ITT LLC, Exelis and Xylem, subject to limited exceptions with respect to certain employee claims and other liabilities and obligations. These provisions address a variety of subjects, including asserted and unasserted product liability matters ( e.g. , asbestos claims, product warranties) which relate to certain products manufactured, repaired or sold prior to the 2011 spin-off. These provisions last indefinitely and are not affected by Harris' acquisition of Exelis. ITT LLC expects Exelis and Xylem to fully perform under the terms of the Distribution Agreement and therefore has not recorded a liability for matters for which we have been assumed or indemnified. In addition, both Exelis and Xylem have made asbestos indemnity claims that could give rise to material payments under the indemnity provided by ITT LLC; such claims are included in our estimate of asbestos liabilities. Guarantees We have $144.6 of guarantees, letters of credit and similar arrangements outstanding at December 31, 2017 , primarily pertaining to commercial or performance guarantees and insurance matters. We have not recorded any material loss contingencies under these guarantees, letters of credit and similar arrangements as of December 31, 2017 as the likelihood of nonperformance by ITT is considered remote. From time to time, we may provide certain third-party guarantees that may be affected by various conditions and external factors, some of which could require that payments be made under such guarantees. We do not consider the maximum exposure or current recorded liabilities under our third-party guarantees to be material either individually or in the aggregate. We do not believe such payments would have a material adverse impact on our financial statements. Warranties ITT warrants numerous products, the terms of which vary widely. In general, ITT warrants its products against defect and specific non-performance. In certain markets, such as automotive, aerospace and rail, liability for product defects could extend beyond the selling price of the product and could be significant if the defect interrupts production or results in a recall. The table included below provides changes in the warranty accrual for December 31, 2017 and 2016 . 2017 2016 Warranty accrual – January 1 $ 19.8 $ 23.5 Warranty expense 7.2 7.4 Payments (10.0 ) (10.1 ) Foreign currency and other 1.3 (1.0 ) Warranty accrual – December 31 $ 18.3 $ 19.8 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Results from discontinued operations for the year ended December 31, 2017 reflect a loss of $1.5 , net of tax, primarily driven by environmental related liabilities. Results from discontinued operations for the year ended December 31, 2016 reflect a gain of $4.2 , net of tax, primarily related to favorable resolutions of certain legacy liabilities in 2016. Results from discontinued operations for the year ended December 31, 2015 reflect a gain of $39.4 , principally related to the settlement of the U.S. income tax audit. This includes a tax benefit of $38.3 from the recognition of previously unrecognized tax positions, related net interest income of $3.2 , and a $13.2 receivable due from Exelis and Xylem, partially offset by net tax expense of $17.4 |
Acquisitions Acquisitions (Note
Acquisitions Acquisitions (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions Disclosure [Text Block] | ACQUISITIONS Axtone Railway Components On January 26, 2017 , we acquired 100% of the privately held stock of Axtone Railway Components (Axtone) for a purchase price of $123.1 , including cash acquired. The purchase price allocation is subject to change during the measurement period (up to one year from the acquisition date). Axtone, which had 2016 revenue of approximately $72 , is a manufacturer of highly engineered and customized energy absorption solutions, including springs, buffers, and coupler components for the railway and industrial markets. The purchase price for Axtone was allocated to net tangible assets acquired and liabilities assumed based on their preliminary fair values as of January 26, 2017, with the excess of the purchase price of $83.0 recorded as goodwill. The primary areas of purchase price allocation that are not yet finalized relate to the valuation of certain contingent liabilities, income tax, and residual goodwill. We expect to obtain the information necessary to finalize the fair value of the net assets and liabilities during the measurement period. Changes to the preliminary estimates of the fair value during the measurement period will be recorded as adjustments to those assets and liabilities with a corresponding adjustment to goodwill in the period they occur. The goodwill arising from this acquisition, which is not expected to be deductible for income tax purposes, has been assigned to the Motion Technologies segment. Preliminary Allocation of Purchase Price for Axtone Cash $ 9.4 Receivables 11.5 Inventory 13.6 Plant, property and equipment 13.1 Goodwill 83.0 Other intangible assets 9.9 Other assets 6.0 Accounts payable and accrued liabilities (14.9 ) Postretirement liabilities (4.2 ) Other liabilities (4.3 ) Net assets acquired $ 123.1 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) . The purchase price of $307.0 net of cash acquired, was funded through a combination of cash and borrowings from our revolving credit facility. The excess of the purchase price over the estimated fair value of net assets acquired of $164.2 was recorded as goodwill. All of the goodwill has been assigned to the Motion Technologies segment. Other intangibles acquired include existing customer relationships, proprietary technology, and trade names. Hartzell Aerospace On March 31, 2015 , we completed the acquisition of Environmental Control Systems (f/k/a Hartzell Aerospace) for a purchase price of $52.9 that was funded through additional commercial paper borrowings. The excess of the purchase price over the estimated fair value of net assets acquired of $13.7 was recorded as goodwill. All of the goodwill has been assigned to the Control Technologies segment. |
Description of Business, Basi31
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for the transportation, industrial, and oil and gas markets. Unless the context otherwise indicates, references herein to "ITT," "the Company," and such words as "we," "us," and "our" include ITT Inc. and its subsidiaries. ITT operates through three segments: Industrial Process, consisting of industrial flow equipment and services; Motion Technologies, consisting of friction and shock and vibration equipment; and Connect & Control Technologies, consisting of electronic connectors, fluid handling, motion control, and noise and energy absorption products. Financial information for our segments is presented in Note 3 , Segment Information . On May 16, 2016, we consummated a corporate reorganization into a holding company structure. As a result of the reorganization ITT Inc., an Indiana corporation that was previously a wholly owned subsidiary of ITT Corporation, became the publicly traded holding company of ITT Corporation and its subsidiaries and the successor issuer to ITT Corporation under Rule 12g-3(a) under the Securities Exchange Act of 1934 (Exchange Act). As the successor issuer, ITT Inc. common stock was deemed to be registered under Section 12(b) of the Exchange Act and ITT Inc. succeeded to ITT Corporation’s obligation to file reports, proxy statements and other information required by the Exchange Act with the SEC. For additional information regarding the holding company reorganization, please refer to the Current Report on Form 8-K that we filed with the SEC on May 16, 2016. On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related businesses, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this report as the “2011 spin-off.” On May 29, 2015, Harris Corporation acquired Exelis. Basis of Presentation The Consolidated Financial Statements and Notes thereto were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. |
Principles of Consolidation | Principles of ConsolidationOur consolidated financial statements include the accounts of all majority-owned subsidiaries. ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Statements of Operations. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal or distribution. All intercompany transactions have been eliminated. |
Revenue Recognition | Revenue Recognition Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions. Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period. For multiple deliverable arrangements, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied. We generally recognize revenue for certain long-term design and build projects using the percentage-of-completion method, based upon the percentage of costs incurred to total projected costs. Revenue and profit recognized under the percentage-of-completion method are based on management’s estimates. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of receivables, net. During the performance of long-term sales contracts, estimated final contract prices and costs are reviewed quarterly and revisions are made as required and recorded in income in the period in which they are determined. We apply the completed-contract method of accounting for smaller design and build contracts, including those of short-term duration. Amounts invoiced to customers in excess of revenue recognized are recorded as a reduction of inventory to the extent project costs have accumulated within inventory or as deferred revenue, within accrued liabilities, until the revenue recognition criteria are satisfied. Our results of operations and financial position would not vary materially had we used the percentage-of-completion method for these types of contracts. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses are recorded as a component of costs of revenue. We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. |
Shipping and Handling Costs | Shipping and Handling CostsShipping and handling costs are recorded as a component of costs of revenue. |
Product Warranties | Product WarrantiesOur standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim. |
Asbestos-Related Liabilities and Assets | Asbestos-Related Liabilities and Assets Subsidiaries of ITT, including ITT LLC and Goulds Pumps LLC, have been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis, due to the inability to reliably forecast the timing of future cash flows. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. The Company has also recorded an asbestos-related asset composed of insurance receivables. The asbestos-related asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers, as well as a review of expected levels of future cost recovery, the financial viability of the insurance companies, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, and interpretation of the various policy and contract terms and limits and their interrelationships. Consistent with the asbestos liability, the asbestos-related asset has not been discounted to present value due to the inability to reliably forecast the timing of future cash flows. Under coverage-in-place agreements, an insurer’s policies remain in force and the insurer undertakes to provide coverage for the Company’s pending and future asbestos claims on specified terms and conditions. Insurance payments under coverage-in-place agreements are made to the Company as asbestos claims are settled or adjudicated. The Company’s buyout agreements provide an agreed upon amount of available coverage for future asbestos claims under the subject policies to be paid to a Qualified Settlement Fund (QSF) on a specific schedule as agreed upon by the Company and its insurer. However, assets in the QSF are only available and distributed when qualifying asbestos expenditures are submitted for reimbursement as defined in the QSF agreement. Therefore, recovery of insurance reimbursements under these types of agreements is dependent on the timing of the payment of the liability and, consistent with the asbestos liability, have not been discounted to present value. |
Postretirement Benefit Plans | Postretirement Benefit Plans ITT sponsors numerous pension and other employee-related defined benefit plans (collectively, postretirement benefit plans). The majority of these plans are closed to new participants. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, and age at retirement or termination. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental. The assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, and other factors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Actual results that differ from our assumptions are accumulated and are amortized over the estimated future working life, or remaining lifetime, of the plan participants depending on the nature of the retirement plan. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last 5 years . The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. |
Research and Development | Research & DevelopmentResearch and development activities are charged to expense as incurred. |
Income Taxes | Income Taxes We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. We record a valuation allowance against our deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence regarding the realizability of its deferred tax assets, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, estimated future taxable income, and whether we have a recent history of losses. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates. We have not provided deferred tax liabilities for the impact of U.S. income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the U.S. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations. |
Earnings Per Share | Earnings Per ShareBasic earnings per common share considers the weighted average number of common shares outstanding. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock units and unvested performance stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect. |
Cash and Cash Equivalents | Cash and Cash EquivalentsITT considers all highly liquid investments purchased with an original maturity or remaining maturity at the time of purchase of three months or less to be cash equivalents. Cash equivalents primarily include fixed-maturity time deposits and money market investments. We record the fixed maturity time deposits at amortized cost and accrue interest during the maturity period. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, investments and derivatives. We maintain cash and cash equivalents with various financial institutions located in different geographical regions, and our policy is designed to limit exposure to any individual counterparty. As part of our risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from financial instruments held at financial institutions. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. However, our largest customer represents approximately 11% and 12% of the December 31, 2017 and 2016 outstanding trade accounts receivable balance, respectively. ITT performs ongoing credit evaluations of the financial condition of its third-party |
Factoring of Trade Receivables [Policy Text Block] | Factoring of Trade ReceivablesFactoring arrangements, whereby substantially all economic risks and rewards associated with trade receivables are transferred to a third party, are accounted for by derecognizing the trade receivables upon receipt of cash proceeds from the factoring arrangement. Factoring arrangements, whereby some, but not substantially all, of the economic risks and rewards are transferred to a third party and the assets subject to the factoring arrangement remain under the Company's control are accounted for by not derecognizing the trade receivables and recognizing any related obligations to the third party. |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsWe determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of our customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. |
Inventories | Inventories Inventories, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value and are charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 12.1% and 12.9% of total 2017 and 2016 inventories, respectively. We have a LIFO reserve of $9.6 and $8.1 recorded as of December 31, 2017 and 2016 , respectively. |
Plant, Property and Equipment | Plant, Property and Equipment Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: buildings and improvements – 5 to 40 years , machinery and equipment – 2 to 10 years , and furniture and office equipment – 3 to 7 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Repairs and maintenance costs are expensed as incurred. |
Capitalized Internal Use Software | Capitalized Internal Use Software Costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from 3 to 7 |
Investments | Investments Investments in fixed-maturity time deposits having an original maturity exceeding three months at the time of purchase, referred to as short-term time deposits, are classified as held-to-maturity and are recorded at amortized cost, which approximates fair value. There were no short-term time deposits held as of December 31, 2017 and December 31, 2016 . Short-term time deposits are presented in other current assets as short-term investments on the Consolidated Balance Sheet. We did not realize any gains or losses from the maturity of these short-term time deposits during 2017 or 2016 and interest income recognized during 2017 or 2016 was not material to our results of operations. Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of the balance sheet date. The Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $101.0 and $96.5 at December 31, 2017 and 2016 , respectively. Changes in the cash surrender value during the period generally reflect gains or losses in the fair value of assets, premium payments, and policy redemptions. Gains from COLI investments of $3.8 , $3.0 , and $3.6 were recorded within general and administrative expenses in the Consolidated Statements of Operations during years ended December 31, 2017 , 2016 and 2015 , respectively. The COLI policy investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2017 and 2016 were approximately $12.5 and $12.6 |
Long-Lived Asset Impairment | Long-Lived Asset ImpairmentLong-lived assets, including intangible assets with finite lives and capitalized internal use software, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of the acquired business. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are generally amortized on a straight-line basis over an estimated economic useful life, which generally ranges from 10 - 20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth fiscal quarter. An initial qualitative evaluation is performed which considers present events and circumstances, to determine the likelihood of impairment. If the likelihood of impairment is not considered to be more likely than not, then no further testing is performed. If it is considered to be more likely than not that the asset is impaired, then a two-step quantitative impairment test is performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded, if any. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. For indefinite-lived intangibles, if it is considered to be more likely than not that the asset is impaired, we compare the fair value of those assets to their carrying value. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. |
Business Combinations | Business Combinations ITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months |
Commitments and Contingencies | Commitments and Contingencies We record accruals for commitments and loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss, and these assessments can involve a series of complex judgments about future events and may rely on estimates and assumptions that have been deemed reasonable by management. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other current information. See Note 18 , Commitments and Contingencies |
Environmental-Related Liabilities and Assets | Environmental-Related Liabilities and Assets Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs, and that share can be reasonably estimated. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties. The Company records an asset related to its environmental exposures for insurance and other third parties. The environmental-related asset represents our best estimate of probable recoveries from third parties for costs incurred in past periods, as well as costs estimated to be incurred in future periods. |
Foreign Currency Translation | Foreign Currency Translation The national currencies of our foreign subsidiaries are generally the functional currencies. Balance Sheet accounts are translated at the exchange rate in effect at the end of each period, except for equity which is translated at historical rates; Statement of Operations accounts are translated at the average rates of exchange prevailing during the period. Gains and losses resulting from foreign currency translation are reflected in the cumulative translation adjustments component of shareholders’ equity. For foreign subsidiaries that do not use the local currency as their functional currency, foreign currency assets and liabilities are remeasured to the foreign subsidiary’s functional currency using end of period exchange rates, except for nonmonetary balance sheet accounts, which are remeasured at historical exchange rates. For transactions denominated in other than the functional currency, revenue and expenses are remeasured at average exchange rates in effect during the reporting period in which the transactions occurred, except for expenses related to nonmonetary assets and liabilities. Transaction gains or losses from foreign currency remeasurement are reported in general and administrative expenses in the Consolidated Statements of Operations. During 2017 and 2016 , we recognized transaction losses of $12.4 and $1.0 , respectively. During 2015 , we recognized transaction gains of $2.8 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU 2016-09 to simplify several aspects of the accounting standard for employee share-based payment transactions, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. ITT elected to adopt this guidance as of January 1, 2017 which includes the following: • Excess tax benefits and deficiencies are no longer recognized as a change in additional paid-in-capital in the equity section of the Balance Sheet. Instead they are recognized on the Statements of Operations as a tax expense or benefit. On the Statement of Cash Flows, excess tax benefits and deficiencies are no longer classified as a financing activity. Instead they are classified as an operating activity. These provisions were adopted using a prospective method of transition. During 2017, we recorded an income tax benefit of $2.7 , on the Statement of Operations and classified this benefit on the Statement of Cash Flows as an operating activity. The excess tax benefit of $3.2 and $3.4 for 2016 and 2015 was recorded as a change in equity on the Balance Sheet and was classified as a financing activity on the Statement of Cash Flows. Previously unrecognized tax benefits due to net operating loss carryforwards were recognized during the first quarter of 2017 using a modified retrospective approach, resulting in a cumulative-effect adjustment to increase retained earnings by $2.1 as of January 1, 2017. In addition, a corresponding deferred tax asset of $25.6 was partially offset by a valuation allowance of $23.5 during the first quarter of 2017 as the newly recognized net operating losses were not considered more likely than not realizable. • The impact of forfeitures are now recognized as they occur as opposed to previously estimating future employee forfeitures. We adopted this provision utilizing a modified retrospective approach, resulting in a cumulative-effect adjustment reducing retained earnings by $1.1 , net of tax, as of January 1, 2017. • The ASU also provides new guidance to other areas including minimum statutory tax withholding rules and the calculation of diluted common shares outstanding. The adoption of these provisions were reflected prospectively in the financial statements and did not have a material impact. |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Pronouncements Not Yet Adopted In March 2017, the FASB issued ASU 2017-07 which amends the Statement of Operations presentation for the components of net periodic benefit cost for entities that sponsor defined benefit pension and other postretirement plans. Under the ASU, entities will be required to disaggregate the service cost component and present it with other current compensation costs for the related employees. All other components of net periodic benefit cost will no longer be classified as an operating expense. In addition, only the service cost component will be eligible for capitalization on the balance sheet. The ASU is effective for the Company beginning in first quarter of 2018 and requires a retrospective transition method to adopt the requirement to present service costs separately from the other components of net periodic benefit cost in the statements of operations, and a prospective transition method to adopt the requirement that prohibits capitalization of all components of net periodic benefit cost on the balance sheet except service costs. As a result of the adoption of the new standard, certain net periodic benefit costs will be reclassified as non-operating expenses resulting in an increase to operating income of approximately $10 and $18 for 2017 and 2016, respectively, with an offsetting impact to non-operating expense (income). In addition, service costs eligible for capitalization on the balance sheet in 2018 is expected to be immaterial. In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intending 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 their 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 Statements of Operations, 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 ASU is effective for the Company beginning in the first quarter 2019, at which time we expect to adopt the new standard. We are currently assessing our existing lease agreements and related financial disclosures to evaluate 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. Based on the evaluation of our current contracts and revenue streams, most will be recorded consistently under both the current and new standard. However, the timing of revenue recognition of certain design and build contracts, recognized using the percentage of completion method under the current standard, will be dependent on contract terms and therefore will vary based on the new guidance. We plan to adopt the new guidance using a modified retrospective approach in the first quarter of 2018. As of the date of adoption, we estimate we have recognized approximately $40 of revenue and $5 of operating income on open contracts in the Industrial Process segment using the percentage of completion method that under the new guidance will not qualify for over time recognition. As a result, we estimate the cumulative effect of adopting the new guidance will decrease the opening balance of retained earnings by $4 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Reporting Segments | Revenue Operating Income (Loss) Operating Margin 2017 2016 2015 2017 2016 2015 2017 2016 2015 Industrial Process $ 807.2 $ 830.1 $ 1,113.8 $ 59.5 $ 33.5 $ 141.2 7.4 % 4.0 % 12.7 % Motion Technologies 1,176.0 983.4 767.2 190.0 171.4 126.4 16.2 % 17.4 % 16.5 % Connect & Control Technologies 605.6 596.3 609.3 66.7 65.2 54.6 11.0 % 10.9 % 9.0 % Total segment results 2,588.8 2,409.8 2,490.3 316.2 270.1 322.2 12.2 % 11.2 % 13.0 % Asbestos-related benefit, net — — — 19.9 25.6 91.4 — — — Eliminations / Other corporate costs (3.5 ) (4.4 ) (4.7 ) (26.4 ) (36.8 ) (33.5 ) — — — Total Eliminations / Corporate and Other costs (3.5 ) (4.4 ) (4.7 ) (6.5 ) (11.2 ) 57.9 — — — Total $ 2,585.3 $ 2,405.4 $ 2,485.6 $ 309.7 $ 258.9 $ 380.1 12.0 % 10.8 % 15.3 % |
Schedule of Segment Reporting Information | Assets Capital Expenditures Depreciation and Amortization 2017 2016 2017 2016 2015 2017 2016 2015 Industrial Process $ 1,025.7 $ 998.1 $ 19.3 $ 24.4 $ 20.4 $ 27.5 $ 27.9 $ 27.9 Motion Technologies 1,140.4 838.4 79.1 73.5 39.3 49.4 43.2 32.4 Connect & Control Technologies 694.8 678.4 10.6 11.7 23.7 22.8 24.3 23.4 Corporate and Other 839.3 1,086.8 4.3 1.8 3.3 5.6 6.6 6.3 Total $ 3,700.2 $ 3,601.7 $ 113.3 $ 111.4 $ 86.7 $ 105.3 $ 102.0 $ 90.0 |
Business Segment Information by Geographical Information | Revenue (a) Geographic Information 2017 2016 2015 United States $ 853.6 $ 900.3 $ 941.1 Germany 389.3 324.4 290.7 Other developed markets 495.5 459.6 476.8 Other emerging markets 846.9 721.1 777.0 Total $ 2,585.3 $ 2,405.4 $ 2,485.6 (a) |
Schedule of PP&E by Geographic Region | Plant, Property & Equipment, Net Geographic Information 2017 2016 United States $ 168.3 $ 181.6 Italy 102.9 81.0 China 52.1 40.2 Germany 39.1 38.5 Mexico 34.5 28.7 Czech Republic 27.9 16.8 South Korea 27.8 28.0 Other developed markets 41.8 36.0 Other emerging markets 27.3 13.7 Total $ 521.7 $ 464.5 |
Revenue by Product Category, Net of Intercompany Balances | The following table provides revenue by product category, net of intercompany balances. 2017 2016 2015 Pumps and complementary products $ 718.8 $ 745.1 $ 1,025.9 Pump support and maintenance services 88.4 84.7 87.8 Brake component products 979.7 873.4 656.7 Shock absorber equipment 196.0 109.6 110.2 Connectors 317.9 309.1 327.9 Aerospace control components 223.1 220.8 210.7 Industrial control components 61.4 62.7 66.4 Total $ 2,585.3 $ 2,405.4 $ 2,485.6 |
Restructuring Actions Restructu
Restructuring Actions Restructuring Actions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | Restructuring costs incurred during each of the previous three years ended are presented in the table below. 2017 2016 2015 By component: Severance costs $ 9.5 $ 24.3 $ 21.7 Asset write-offs 1.9 0.7 1.0 Other restructuring costs 1.7 1.3 1.3 Total restructuring costs $ 13.1 $ 26.3 $ 24.0 By segment: Industrial Process $ 7.4 $ 20.5 $ 12.2 Motion Technologies 2.3 2.5 — Connect & Control Technologies 3.3 1.5 11.6 Corporate and Other 0.1 1.8 0.2 |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Accruals | The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for each of the previous two years ended December 31st. 2017 2016 Restructuring accruals - beginning balance $ 14.6 $ 20.0 Restructuring costs 13.1 26.3 Cash payments (17.8 ) (30.3 ) Asset write-offs (1.9 ) (0.7 ) Foreign exchange translation and other 0.9 (0.7 ) Restructuring accrual - ending balance $ 8.9 $ 14.6 By accrual type: Severance accrual $ 8.0 $ 14.3 Facility carrying and other costs accrual 0.9 0.3 |
Industrial Process | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Accruals | 2017 2016 Restructuring accruals - beginning balance $ 6.5 $ 4.9 Restructuring costs 7.4 20.5 Cash payments (7.3 ) (18.0 ) Asset write-offs (1.8 ) (0.5 ) Foreign exchange translation and other (0.9 ) (0.4 ) Restructuring accruals - ending balance $ 3.9 $ 6.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Data from Continuing Operations | For each of the years ended December 31, 2017 , 2016 , and 2015 the tax data related to continuing operations is as follows: 2017 2016 2015 Income components: United States $ 89.2 $ 87.5 $ 159.3 International 220.2 170.9 223.0 Income from continuing operations before income tax 309.4 258.4 382.3 Income tax expense components: Current income tax expense (benefit): United States – federal 7.7 4.3 (8.5 ) United States – state and local 1.3 (0.3 ) 0.1 International 38.6 51.1 52.9 Total current income tax expense 47.6 55.1 44.5 Deferred income tax expense components: United States – federal 105.9 26.4 31.9 United States – state and local 4.4 (2.1 ) 6.0 International 36.7 (3.4 ) (12.3 ) Total deferred income tax expense 147.0 20.9 25.6 Income tax expense $ 194.6 $ 76.0 $ 70.1 Effective income tax rate 62.9 % 29.4 % 18.3 % |
Reconciliation of Tax Provision for Continuing Operations | A reconciliation of the income tax expense for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2017 , 2016 , and 2015 : 2017 2016 2015 Tax provision at U.S. statutory rate 35.0 % 35.0 % 35.0 % Federal deferred taxes remeasurement - Tax Act 27.8 % — % — % One-time tax on foreign earnings - Tax Act 18.8 % — % — % Foreign tax rate differential (8.6 )% (3.5 )% (4.7 )% Tax exempt interest (7.8 )% (5.2 )% (6.7 )% Valuation allowance on deferred tax assets 7.2 % 1.4 % 3.3 % Tax on undistributed foreign earnings (4.8 )% 4.9 % (5.6 )% U.S. permanent items (2.2 )% (1.9 )% (1.0 )% Italy patent box prior year benefit (1.1 )% — % — % Audit settlements and unrecognized tax benefits (0.8 )% (5.2 )% (5.0 )% U.S. tax on foreign earnings 0.3 % 4.7 % 3.8 % State and local income tax 0.3 % (0.1 )% 1.0 % Foreign tax holiday — % — % (1.1 )% Other adjustments (1.2 )% (0.7 )% (0.7 )% Effective income tax rate 62.9 % 29.4 % 18.3 % |
Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities include the following: 2017 2016 Deferred Tax Assets: Loss carryforwards $ 165.5 $ 112.3 Asbestos 118.7 209.8 Employee benefits 70.8 98.9 Accruals 51.3 74.8 Credit carryforwards 5.7 50.7 Other 23.1 21.2 Gross deferred tax assets 435.1 567.7 Less: Valuation allowance 170.0 113.3 Net deferred tax assets $ 265.1 $ 454.4 Deferred Tax Liabilities: Intangibles $ (45.4 ) $ (68.3 ) Undistributed earnings (39.0 ) (52.3 ) Accelerated depreciation (31.8 ) (36.5 ) Investment (0.2 ) (0.4 ) Total deferred tax liabilities $ (116.4 ) $ (157.5 ) Net deferred tax assets $ 148.7 $ 296.9 |
Deferred Taxes in Consolidated Balance Sheets | Deferred taxes are presented in the Consolidated Balance Sheets as follows: 2017 2016 Non-current assets $ 149.9 $ 297.4 Other non-current liabilities (1.2 ) (0.5 ) Net deferred tax assets $ 148.7 $ 296.9 |
Deferred Tax Asset Valuation Allowance Rollforward [Table Text Block] | The table included below provides a rollforward of our valuation allowance on net deferred income tax assets from December 31, 2014 to December 31, 2017 . Federal State Foreign Total DTA valuation allowance - December 31, 2014 $ — $ 45.0 $ 102.1 $ 147.1 Change in assessment — — (7.4 ) (7.4 ) Current year operations — (3.5 ) (0.5 ) (4.0 ) DTA valuation allowance - December 31, 2015 — 41.5 94.2 135.7 Change in assessment — — (0.3 ) (0.3 ) Current year operations — 4.4 (26.5 ) (22.1 ) DTA valuation allowance - December 31, 2016 — 45.9 67.4 113.3 Current year operations — 26.5 30.2 56.7 DTA valuation allowance - December 31, 2017 $ — $ 72.4 $ 97.6 $ 170.0 |
Attributes Available for Utilization | We have the following tax attributes available for utilization at December 31, 2017 : Attribute Amount First Year of Expiration U.S. federal net operating losses $ 0.1 12/31/2033 U.S. state net operating losses $ 1,326.2 12/31/2018 U.S. federal tax credits $ 0.2 12/31/2021 U.S. state tax credits $ 5.5 12/31/2020 Foreign net operating losses (a) $ 350.0 12/31/2018 |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2017 , 2016 , and 2015 is as follows: 2017 2016 2015 Unrecognized tax benefits – January 1 $ 69.5 $ 87.6 $ 160.1 Additions for: Current year tax positions 1.1 1.2 3.4 Prior year tax positions — 0.2 1.8 Assumed in acquisition — 0.2 1.9 Reductions for: Prior year tax positions (12.7 ) (3.8 ) (56.6 ) Expiration of statute of limitations (5.8 ) (5.0 ) (4.0 ) Settlements (0.2 ) (10.9 ) (19.0 ) Unrecognized tax benefits – December 31 $ 51.9 $ 69.5 $ 87.6 |
Open Tax Years by Major Jurisdiction | The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2017 : Jurisdiction Earliest Open Year China 2012 Czech Republic 2011 Germany 2010 Italy 2005 Korea 2012 Luxembourg 2012 Mexico 2012 United States 2014 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Share | The following table provides a reconciliation of the data used in the calculation of basic and diluted common shares outstanding for the three years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Basic weighted average common shares outstanding 88.3 89.2 89.8 Add: Dilutive impact of outstanding equity awards 0.7 0.7 0.9 Diluted weighted average common shares outstanding 89.0 89.9 90.7 |
Number of Shares Underlying Stock Options Excluded from Computation of Diluted Loss | The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three years ended December 31, 2017 , 2016 and 2015 because they were anti-dilutive. 2017 2016 2015 Anti-dilutive stock options 0.3 0.7 0.4 Average exercise price $ 42.43 $ 38.34 $ 42.50 Year(s) of expiration 2024 - 2025 2024 - 2026 2024 - 2025 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Receivables, Net | 2017 2016 Trade accounts receivable $ 601.4 $ 513.5 Notes receivable 3.9 4.2 Other (a) 40.4 21.6 Receivables, gross 645.7 539.3 Less: allowance for doubtful accounts 16.1 15.4 Receivables, net $ 629.6 $ 523.9 |
Rollforward of Allowance for Doubtful Accounts | The following table displays a rollforward of the allowance for doubtful accounts for the years ended December 31, 2017 , 2016 , and 2015 . 2017 2016 2015 Allowance for doubtful accounts – January 1 $ 15.4 $ 16.1 $ 13.3 Charges to income 3.6 1.5 3.6 Write-offs (4.4 ) (1.5 ) (0.8 ) Foreign currency and other 1.5 (0.7 ) — Allowance for doubtful accounts – December 31 $ 16.1 $ 15.4 $ 16.1 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of Inventories, Net | 2017 2016 Finished goods $ 55.9 $ 53.0 Work in process 54.8 60.5 Raw materials 184.4 166.0 Inventoried costs related to long-term contracts 38.1 33.5 Total inventory before progress payments 333.2 313.0 Less – progress payments (21.3 ) (17.8 ) Inventories, net $ 311.9 $ 295.2 |
Other Current and Non-Current38
Other Current and Non-Current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Components of Other Current and Non-Current Assets | 2017 2016 Asbestos-related current assets $ 64.7 $ 66.0 Prepaid income tax 30.3 7.6 Other 52.4 48.4 Other current assets $ 147.4 $ 122.0 Other employee benefit-related assets $ 111.3 $ 96.5 Capitalized software costs 41.9 38.1 Environmental-related assets 24.5 33.4 Equity method investments 6.7 5.6 Other 18.5 14.8 Other non-current assets $ 202.9 $ 188.4 |
Plant, Property and Equipment39
Plant, Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of Plant, Property and Equipment, Net | 2017 2016 Machinery and equipment $ 1,039.9 $ 898.6 Buildings and improvements 262.5 244.6 Furniture, fixtures and office equipment 74.5 68.0 Construction work in progress 58.4 68.5 Land and improvements 28.7 28.2 Other 10.9 5.3 Plant, property and equipment, gross 1,474.9 1,313.2 Less: accumulated depreciation (953.2 ) (848.7 ) Plant, property and equipment, net $ 521.7 $ 464.5 |
Goodwill and Other Intangible40
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 by segment are as follows: Industrial Process Motion Technologies Connect & Control Technologies Total Goodwill - December 31, 2015 $ 312.6 $ 201.0 $ 264.7 $ 778.3 Adjustments to purchase price allocations — 2.6 0.4 3.0 Foreign currency (4.2 ) (1.3 ) (1.1 ) (6.6 ) Goodwill - December 31, 2016 $ 308.4 $ 202.3 $ 264.0 $ 774.7 Goodwill acquired — 91.2 — 91.2 Adjustments to purchase price allocations — (8.2 ) — (8.2 ) Foreign currency 16.1 10.3 2.7 29.1 Goodwill - December 31, 2017 $ 324.5 $ 295.6 $ 266.7 $ 886.8 |
Finite-Lived Intangible Assets [Line Items] | |
Other Intangible Assets | Information regarding our other intangible assets is as follows: December 31, 2017 December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 166.2 $ (74.4 ) $ 91.8 $ 155.8 $ (59.3 ) $ 96.5 Proprietary technology 54.4 (21.8 ) 32.6 52.5 (16.8 ) 35.7 Patents and other 13.5 (9.2 ) 4.3 9.0 (7.6 ) 1.4 Finite-lived intangible total 234.1 (105.4 ) 128.7 217.3 (83.7 ) 133.6 Indefinite-lived intangibles 27.5 — 27.5 26.7 — 26.7 Other Intangible Assets $ 261.6 $ (105.4 ) $ 156.2 $ 244.0 $ (83.7 ) $ 160.3 |
Estimated Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets for 2017 , 2016 and 2015 was $18.9 , $20.1 and $14.0 , respectively. Estimated amortization expense for each of the five succeeding years is as follows: Year Estimated Amortization Expense 2018 $ 18.1 2019 18.1 2020 17.9 2021 17.9 2022 16.2 Thereafter 40.5 |
Accrued Liabilities and Other41
Accrued Liabilities and Other Non-Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Non-Current Liabilities, Net | 2017 2016 Compensation and other employee-related benefits $ 147.2 $ 120.5 Asbestos-related liability 77.1 76.8 Customer-related liabilities 45.5 39.9 Accrued income taxes and other tax-related liabilities 36.1 31.0 Environmental and other legal matters 22.8 25.1 Accrued warranty costs 17.0 17.4 Other accrued liabilities 38.7 39.5 Accrued and other current liabilities $ 384.4 $ 350.2 Environmental liabilities $ 63.6 $ 63.2 Compensation and other employee-related benefits 36.4 33.0 Deferred income taxes and other tax-related liabilities 19.3 24.9 Other 56.3 59.9 Other non-current liabilities $ 175.6 $ 181.0 |
Leases and Rentals (Tables)
Leases and Rentals (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Operating Lease Payments Under Non-Cancellable Operating Leases | Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2017 are shown below. 2018 $ 24.8 2019 20.2 2020 17.0 2021 16.6 2022 14.4 2023 and thereafter 58.2 Total minimum lease payments $ 151.2 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Outstanding Debt | 2017 2016 Commercial Paper $ 162.4 $ 113.5 Short-term loans — 100.0 Current maturities of long-term debt 0.9 0.6 Current capital leases 0.3 0.2 Short-term loans and current maturities of long-term debt 163.6 214.3 Non-current maturities of long-term debt 8.2 1.8 Non-current capital leases 0.1 0.2 Long-term debt and capital leases 8.3 2.0 Total debt and capital leases $ 171.9 $ 216.3 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Summary of Funded Status of Postretirement Benefit Plans and Presentation of Such Balances within Consolidated Balance Sheet | The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2017 and 2016 . 2017 2016 Pension Other Benefits Total Pension Other Benefits Total Fair value of plan assets $ 321.5 $ 5.2 $ 326.7 $ 263.1 $ 6.1 $ 269.2 Projected benefit obligation 419.0 138.1 557.1 392.2 138.8 531.0 Funded status $ (97.5 ) $ (132.9 ) $ (230.4 ) $ (129.1 ) $ (132.7 ) $ (261.8 ) Amounts reported within: Non-current assets $ 10.3 $ — $ 10.3 $ — $ — $ — Accrued liabilities (4.8 ) (8.6 ) (13.4 ) (3.7 ) (9.5 ) (13.2 ) Non-current liabilities (103.0 ) (124.3 ) (227.3 ) (125.4 ) (123.2 ) (248.6 ) |
Amount Recognized in Accumulated Other Comprehensive Income Loss | The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2017 and 2016 . 2017 2016 Pension Other Benefits Total Pension Other Benefits Total Net actuarial loss $ 141.1 $ 56.3 $ 197.4 $ 154.0 $ 59.6 $ 213.6 Prior service cost (benefit) 2.0 (44.3 ) (42.3 ) 5.1 (50.5 ) (45.4 ) Total $ 143.1 $ 12.0 $ 155.1 $ 159.1 $ 9.1 $ 168.2 |
Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans | The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans and our other employee-related defined benefit plans for the years ended December 31, 2017 and 2016 . 2017 2016 U.S. Int’l Other Benefits Total U.S. Int’l Other Benefits Total Change in benefit obligation Benefit obligation – January 1 $ 312.3 $ 79.9 $ 138.8 $ 531.0 $ 339.9 $ 78.0 $ 143.4 $ 561.3 Service cost 4.6 1.4 0.8 6.8 4.1 1.3 0.9 6.3 Interest cost 10.5 1.6 4.4 16.5 11.9 1.5 4.9 18.3 Amendments 1.6 — 0.4 2.0 — 0.4 — 0.4 Actuarial loss (gain) 19.1 (0.3 ) 1.9 20.7 5.9 4.2 (1.9 ) 8.2 Benefits and expenses paid (22.4 ) (3.0 ) (8.2 ) (33.6 ) (21.5 ) (2.7 ) (8.5 ) (32.7 ) Acquired — 3.5 — 3.5 — — — — Settlement — (0.4 ) — (0.4 ) (28.0 ) (0.5 ) — (28.5 ) Curtailment — — — — — (0.2 ) — (0.2 ) Foreign currency translation — 10.6 — 10.6 — (2.1 ) — (2.1 ) Benefit obligation – December 31 $ 325.7 $ 93.3 $ 138.1 $ 557.1 $ 312.3 $ 79.9 $ 138.8 $ 531.0 |
Changes in Fair Value of Plan Assets of Pension Plans | The following table provides a rollforward of our U.S. and international pension plan and other employee-related defined benefit plan assets and the funded status as of and for the years ended December 31, 2017 and 2016 . 2017 2016 U.S. Int’l Other Benefits Total U.S. Int’l Other Benefits Total Change in plan assets Plan assets – January 1 $ 262.2 $ 0.9 $ 6.1 $ 269.2 $ 278.1 $ 0.9 $ 7.9 $ 286.9 Actual return on plan assets 45.2 — 1.2 46.4 24.0 — 0.5 24.5 Employer contributions 35.9 3.0 6.1 45.0 9.6 3.2 6.2 19.0 Benefits and expenses paid (22.4 ) (3.0 ) (8.2 ) (33.6 ) (21.5 ) (2.7 ) (8.5 ) (32.7 ) Settlement — (0.4 ) — (0.4 ) (28.0 ) (0.5 ) — (28.5 ) Foreign currency translation — 0.1 — 0.1 — — — — Plan assets – December 31 $ 320.9 $ 0.6 $ 5.2 $ 326.7 $ 262.2 $ 0.9 $ 6.1 $ 269.2 Funded status at end of year $ (4.8 ) $ (92.7 ) $ (132.9 ) $ (230.4 ) $ (50.1 ) $ (79.0 ) $ (132.7 ) $ (261.8 ) |
Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets is included in the following table. 2017 2016 Projected benefit obligation $ 107.8 $ 391.6 Accumulated benefit obligation 105.4 388.8 Fair value of plan assets — 262.2 |
Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) | The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2017 , 2016 and 2015 as they pertain to our defined benefit pension plans. 2017 2016 2015 U.S. Int’l Total U.S. Int’l Total U.S. Int’l Total Net periodic postretirement cost - pension Service cost $ 4.6 $ 1.4 $ 6.0 $ 4.1 $ 1.3 $ 5.4 $ 3.5 $ 1.5 $ 5.0 Interest cost 10.5 1.6 12.1 11.9 1.5 13.4 13.0 1.5 14.5 Expected return on plan assets (18.3 ) — (18.3 ) (20.1 ) — (20.1 ) (20.8 ) — (20.8 ) Amortization of net actuarial loss 6.6 1.0 7.6 7.1 0.7 7.8 7.5 1.0 8.5 Amortization of prior service cost 1.0 — 1.0 0.9 — 0.9 1.0 — 1.0 Net periodic postretirement cost 4.4 4.0 8.4 3.9 3.5 7.4 4.2 4.0 8.2 Curtailment or settlement charges 3.7 — 3.7 12.7 — 12.7 — 0.1 0.1 Total net periodic postretirement cost 8.1 4.0 12.1 16.6 3.5 20.1 4.2 4.1 8.3 Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss (7.9 ) (0.3 ) (8.2 ) 2.1 4.0 6.1 13.9 (2.9 ) 11.0 Prior service cost 1.6 — 1.6 — 0.4 0.4 — — — Amortization of net actuarial (loss) gain (6.6 ) (1.0 ) (7.6 ) (19.8 ) (0.7 ) (20.5 ) (7.5 ) (1.1 ) (8.6 ) Amortization of prior service cost (4.7 ) — (4.7 ) (0.9 ) — (0.9 ) (1.0 ) — (1.0 ) Foreign currency translation — 2.9 2.9 — (0.5 ) (0.5 ) — (2.5 ) (2.5 ) Total change recognized in other comprehensive income (17.6 ) 1.6 (16.0 ) (18.6 ) 3.2 (15.4 ) 5.4 (6.5 ) (1.1 ) Total impact from net periodic postretirement cost and changes in other comprehensive income $ (9.5 ) $ 5.6 $ (3.9 ) $ (2.0 ) $ 6.7 $ 4.7 $ 9.6 $ (2.4 ) $ 7.2 In the third quarter of 2017, we recorded a curtailment loss of $3.7 related to a freeze of benefit accruals for certain employees at our Industrial Process segment. During 2016, we recognized a non-cash pretax pension settlement charge of $12.7 as the result of a program offering certain former U.S. employees with a vested pension benefit an option to take a one-time lump sum distribution as part of ITT's overall plan to de-risk its pension plans. Approximately 1,100 participants accepted the offer, resulting in a payment of $28.0 from the plan and a reduction in the Company's projected benefit obligation of $26.6 , including an actuarial loss of $1.4 |
Net Loss and Prior Service Cost that will be Amortized from Accumulated Other Comprehensive Income Loss | The following table provides the estimated net actuarial loss and prior service cost that is expected to be amortized from accumulated other comprehensive loss into net periodic postretirement cost during 2018 . Pension Other Benefits Total Net actuarial loss $ 5.9 $ 4.3 $ 10.2 Prior service cost (credit) 0.9 (5.3 ) (4.4 ) Total $ 6.8 $ (1.0 ) $ 5.8 |
Weighted Average Assumptions used to Determine Benefit Obligations | The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to our U.S. and non-U.S. defined benefit pension plans and other employee-related defined benefit plans. 2017 2016 U.S. Int’l Other Benefits U.S. Int’l Other Benefits Obligation Assumptions: Discount rate 3.6 % 1.7 % 3.6 % 4.2 % 1.7 % 4.1 % Rate of future compensation increase N/A 3.3 % N/A N/A 3.4 % N/A Cost Assumptions: Discount rate 4.2 % 1.7 % 4.1 % 4.3 % 2.3 % 4.1 % Expected return on plan assets 7.0 % 1.0 % 7.0 % 7.2 % 4.8 % 7.2 % |
Actual Versus Expected Long Term Returns for Our Domestic Pension Plans | The chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year. 2017 2016 2015 Expected rate of return on plan assets 7.0 % 7.2 % 8.0 % Actual rate of return on plan assets 18.0 % 9.2 % (2.8 )% |
Asset Allocation Range | The following table provides the allocation of postretirement benefit plan assets by asset category, as of December 31, 2017 and 2016 , and the current asset allocation ranges by asset category. 2017 2016 Asset Allocation Range U.S. equities 22 % 26 % 0-50 % International equities 8 % 22 % 0-25 % Fixed income 68 % 51 % 50-100 % Cash and other 2 % 1 % 0-10 % |
Fair Value of Plan Assets Held by Our Postretirement Benefits Plans | The following table provides the investments at fair value held by our postretirement benefit plans at December 31, 2017 and 2016 , by asset class. Pension Other Benefits 2017 Level 1 Measured at NAV Total Level 1 Total Collective Trusts: U.S. equity $ — $ 70.6 $ 70.6 $ — $ — International equity — 26.6 26.6 — — Fixed income — 218.7 218.7 — — Mutual funds — — — 5.2 5.2 Cash and other 5.6 — 5.6 — — Total $ 5.6 $ 315.9 $ 321.5 $ 5.2 $ 5.2 Pension Other Benefits 2016 Level 1 Measured at NAV Total Level 1 Total Collective Trusts: U.S. equity $ — $ 67.4 $ 67.4 $ — $ — International equity — 58.9 58.9 — — Fixed income — 135.0 135.0 — — Mutual funds — — — 6.1 6.1 Cash and other 1.8 — 1.8 — — Total $ 1.8 $ 261.3 $ 263.1 $ 6.1 $ 6.1 |
Estimated Future Benefit Payments | The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans. U.S. Pension Int’l Pension Other Benefits 2018 $ 24.9 $ 3.9 $ 10.8 2019 24.2 3.6 10.4 2020 23.1 4.4 10.2 2021 22.8 3.9 10.0 2022 22.3 4.2 9.5 2023 - 2027 103.2 19.5 41.7 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) | The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2017 , 2016 and 2015 as they pertain to other employee-related defined benefit plans. 2017 2016 2015 Net periodic postretirement cost - other postretirement Service cost $ 0.8 $ 0.9 $ 0.9 Interest cost 4.4 4.9 5.0 Expected return on plan assets (0.3 ) (0.5 ) (0.9 ) Amortization of net actuarial loss 4.4 4.6 4.6 Amortization of prior service credit (5.8 ) (6.5 ) (11.0 ) Net periodic postretirement cost (benefit) 3.5 3.4 (1.4 ) Gain due to curtailment — — (4.2 ) Total net periodic postretirement cost (benefit) 3.5 3.4 (5.6 ) Other changes in plan assets and benefit obligations recognized in other comprehensive income Net actuarial (gain) loss 1.0 (1.9 ) 7.7 Prior service cost 0.5 — — Amortization of net actuarial loss (4.4 ) (4.6 ) (4.6 ) Amortization of prior service credit 5.8 6.5 11.0 Acceleration of prior service costs — — 6.2 Total changes recognized in other comprehensive income 2.9 — 20.3 Total impact from net periodic postretirement cost and changes in other comprehensive income $ 6.4 $ 3.4 $ 14.7 During 2015, we recognized a benefit of $4.2 |
Long-Term Incentive Employee 45
Long-Term Incentive Employee Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Employee Compensation Costs | LTIP costs are primarily recorded within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis and are reduced by forfeitures as they occur. These costs impacted our consolidated results of operations as follows: 2017 2016 2015 Share-based compensation expense, equity-based awards $ 18.1 $ 12.6 $ 15.7 Share-based compensation expense, liability-based awards 2.8 1.8 1.1 Total share-based compensation expense in operating income $ 20.9 $ 14.4 $ 16.8 |
Status of Stock Option and Restricted Stock Shares | A summary of the status of our NQOs as of December 31, 2017 , 2016 and 2015 and changes during the years then ended is presented below. 2017 2016 2015 Stock Options Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Outstanding – January 1 1.4 $ 30.57 1.7 $ 27.10 1.9 $ 24.20 Granted — — 0.4 33.01 0.2 41.52 Exercised (0.5 ) 22.95 (0.6 ) 20.88 (0.3 ) 19.87 Canceled or expired — — (0.1 ) 39.03 (0.1 ) 35.95 Outstanding – December 31 0.9 $ 34.07 1.4 $ 30.57 1.7 $ 27.10 Options exercisable – December 31 0.5 $ 32.24 0.8 $ 24.41 1.1 $ 21.75 |
Share-Based Compensation Summary of Stock Options | The following table summarizes information about ITT’s stock options at December 31, 2017 : Options Outstanding Options Exercisable Exercise Prices Number Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Number Weighted Average Remaining Contractual Life (in years) Aggregate Intrinsic Value Less than $23.00 0.1 3.5 3.4 0.1 3.5 3.4 $26.76 0.1 5.2 4.2 0.1 5.2 4.2 $33.01 0.3 8.1 6.1 0.1 8.1 0.6 $41.52 0.2 7.2 2.2 0.1 7.2 0.4 $43.52 0.2 6.2 1.4 0.1 6.2 1.4 0.9 6.5 $ 17.3 0.5 5.4 $ 10.0 |
Weighted Average Assumptions | The following are weighted-average assumptions for 2016 and 2015 : 2016 2015 Dividend yield 1.5 % 1.1 % Expected volatility 32.2 % 29.4 % Expected life (in years) 6.0 5.8 Risk-free rates 1.5 % 1.7 % Weighted-average grant date fair value $ 9.16 $ 11.23 |
Rollforward of Outstanding Restricted Stock | The table below provides a rollforward of outstanding RSUs and PSUs for each of the years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Restricted Stock and Performance Units Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Outstanding – January 1 1.1 $ 38.24 1.3 $ 36.56 1.1 $ 31.70 Granted 0.5 42.52 0.5 33.28 0.5 41.34 Performance adjustment (a) — — (0.1 ) 45.47 0.1 29.59 Lapsed (0.2 ) 41.42 (0.5 ) 29.86 (0.3 ) 24.09 Canceled (0.2 ) 41.75 (0.1 ) 39.20 (0.1 ) 35.89 Outstanding – December 31 1.2 $ 38.74 1.1 $ 38.24 1.3 $ 36.56 Vested pending issuance 0.1 $ 42.90 — $ — 0.3 $ 29.59 (a) Represents the adjustment to the number of shares to be issued above or below target for performance results achieved relative to PSUs granted in 2015 that vested on December 31, 2017, PSUs granted in 2014 that vested on December 31, 2016 and PSUs granted in 2013 that vested on December 31, 2015. |
Number of Outstanding Equity Settled RSUs, Cash Settled RSUs and RSAs | The table below provides the number of the outstanding equity settled RSUs, cash settled RSUs, and PSUs as of December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Equity settled RSUs 0.7 0.7 0.7 Cash settled RSUs 0.1 0.1 0.1 PSU awards 0.4 0.3 0.5 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity Related to Asbestos Claims | As of December 31, 2017 , there were 26 thousand pending active claims against ITT subsidiaries, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: (in thousands) 2017 2016 2015 Pending claims – Beginning 30 37 62 New claims 4 4 4 Settlements (2 ) (1 ) (1 ) Dismissals (6 ) (10 ) (28 ) Pending claims – Ending 26 30 37 |
Summary of Net Asbestos Charges | The table below summarizes the total net asbestos charge for the years ended December 31, 2017 , 2016 and 2015 . 2017 2016 2015 Asbestos provision $ 56.5 $ 59.0 $ 63.0 Asbestos remeasurement, net (76.4 ) (81.8 ) (44.8 ) Defense cost adjustment — (4.9 ) (100.7 ) Settlement agreements — 2.1 (8.9 ) Asbestos-related benefit, net $ (19.9 ) $ (25.6 ) $ (91.4 ) |
Roll Forward of Asbestos Liability and Related Assets | The following table provides a rollforward of the estimated asbestos liability and related assets for the years ended December 31, 2017 and 2016 . 2017 2016 Liability Asset Net Liability Asset Net Balance as of January 1 $ 954.3 $ 380.6 $ 573.7 $ 1,042.8 $ 412.0 $ 630.8 Asbestos provision 67.1 10.6 56.5 68.8 9.8 59.0 Asbestos remeasurement (66.4 ) 10.0 (76.4 ) (75.9 ) 5.9 (81.8 ) Settlement agreements — — — — (2.1 ) 2.1 Defense cost adjustment — — — (4.9 ) — (4.9 ) Net cash activity and other (77.8 ) (32.5 ) (45.3 ) (76.5 ) (45.0 ) (31.5 ) Balance as of December 31 $ 877.2 $ 368.7 $ 508.5 $ 954.3 $ 380.6 $ 573.7 Current portion 77.1 64.7 76.8 66.0 Noncurrent portion 800.1 304.0 877.5 314.6 |
Rollforward of Environmental Liability and Related Assets Table | The following table provides a rollforward of the estimated current and long-term environmental liability for the years ended December 31, 2017 and 2016 . 2017 2016 Balance as of January 1 $ 76.6 $ 82.6 Changes in estimates for pre-existing accruals (a) 8.8 5.9 Net cash activity (11.7 ) (11.9 ) Foreign currency 0.2 — Balance as of December 31 $ 73.9 $ 76.6 (a) Changes in estimates for pre-existing accruals includes environmental-related costs of $3.7 and a reversal of prior accruals of $0.7 reported within results of discontinued operations for the years ended December 31, 2017 and 2016 |
Range of Environmental Liability and Number of Active Sites for Environmental Matters | The following table illustrates the reasonably possible high range of estimated liability, and number of active sites for environmental matters. 2017 2016 High end range $ 126.3 $ 127.6 Number of active environmental investigation and remediation sites 36 39 |
Guarantees, Indemnities and W47
Guarantees, Indemnities and Warranties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees [Abstract] | |
Changes in Product Warranty Accrual | The table included below provides changes in the warranty accrual for December 31, 2017 and 2016 . 2017 2016 Warranty accrual – January 1 $ 19.8 $ 23.5 Warranty expense 7.2 7.4 Payments (10.0 ) (10.1 ) Foreign currency and other 1.3 (1.0 ) Warranty accrual – December 31 $ 18.3 $ 19.8 |
Acquisitions Acquisitions (Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions [Abstract] | |
Assets Acquired [Table Text Block] | Cash $ 9.4 Receivables 11.5 Inventory 13.6 Plant, property and equipment 13.1 Goodwill 83.0 Other intangible assets 9.9 Other assets 6.0 Accounts payable and accrued liabilities (14.9 ) Postretirement liabilities (4.2 ) Other liabilities (4.3 ) Net assets acquired $ 123.1 |
Description of Business, Basi49
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Measurement period used to determine the long term expected return plan assets | 5 years | ||
LIFO inventory, percentage of total | 12.10% | 12.90% | |
LIFO inventory reserve amount recorded | $ 9.6 | $ 8.1 | |
Maturities of time deposits, description | original maturity exceeding three months at the time of purchase, referred to as short-term time deposits, are classified as held-to-maturity and are recorded at amortized cost, which approximates fair value. | ||
Short-term investments | $ 0 | 0 | |
Investments in Corporate Owned Life Insurance | 101 | 96.5 | |
Gain from Corporate Owned Life Insurance | 3.8 | 3 | $ 3.6 |
Deferred Compensation Liability, Current and Noncurrent | $ 12.5 | 12.6 | |
Acquisition measurement period | 12 months | ||
Foreign Currency Transaction Gain (Loss), before Tax | $ (12.4) | $ (1) | $ 2.8 |
Minimum [Member] | Building and improvements [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 5 years | ||
Minimum [Member] | Machinery and equipment [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 2 years | ||
Minimum [Member] | Furniture and office equipment [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 3 years | ||
Minimum [Member] | Software [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 3 years | ||
Minimum [Member] | Intangible assets with a finite life amortized on a straight-line basis [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||
Maximum [Member] | Building and improvements [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 40 years | ||
Maximum [Member] | Machinery and equipment [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 10 years | ||
Maximum [Member] | Furniture and office equipment [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 7 years | ||
Maximum [Member] | Software [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Plant, property and equipment estimated useful life | 7 years | ||
Maximum [Member] | Intangible assets with a finite life amortized on a straight-line basis [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | ||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Concentration Risk, Percentage | 11.00% | 12.00% |
Recent Accounting Pronounceme50
Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Excess Tax Benefit from Share-based Compensation, Operating Activities | $ 2.7 | ||
Excess Tax Benefit from Share-based Compensation, Financing Activities | 0 | $ 3.2 | $ 3.4 |
Cumulative Effect on Retained Earnings, Net of Tax | 1 | ||
Estimate of Revenue Recognized on Open Contracts Prior to Adoption of Revenue ASU [Member] | Restatement Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 40 | ||
Estimated Income Statement Reclassification of Postretirement Costs from Operating to Non-Operating for Adoption on ASU 2017-07 on Jan 1 2018 [Member] | Restatement Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 10 | $ 18 | |
Estimate of Operating Income Recognized on Open Contracts Prior to Adoption of Revenue ASU [Member] | Restatement Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 5 | ||
Cumulative Effect Adjustment to Retained Earnings for Previously Recognized Income on Open Contracts, Net of Tax, Prior to Adoption of Revenue ASU [Member] | Restatement Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 4 | ||
Accounting Standards Update 2016-09 [Member] | Deferred Tax Asset [Domain] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (25.6) | ||
Accounting Standards Update 2016-09 [Member] | Valuation Allowance, Operating Loss Carryforwards [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 23.5 | ||
Accounting Standards Update 2016-09 [Member] | Previously Unrecognized Tax Benefits Due to NOL Carryforwards [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative Effect on Retained Earnings, Net of Tax | 2.1 | ||
Accounting Standards Update 2016-09 [Member] | Forfeiture Rate Estimate Adjustment [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 1.1 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting [Abstract] | |||
Number of reportable segments | 3 | ||
Percentage of Revenue attributable to a Single Customer | 11.10% | 10.50% | 9.10% |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information by Segment Revenue (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 2,585.3 | $ 2,405.4 | $ 2,485.6 |
Operating income (loss) | $ 309.7 | $ 258.9 | $ 380.1 |
Operating margin | 12.00% | 10.80% | 15.30% |
Industrial Process | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 807.2 | $ 830.1 | $ 1,113.8 |
Operating income (loss) | $ 59.5 | $ 33.5 | $ 141.2 |
Operating margin | 7.40% | 4.00% | 12.70% |
Motion Technologies | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 1,176 | $ 983.4 | $ 767.2 |
Operating income (loss) | $ 190 | $ 171.4 | $ 126.4 |
Operating margin | 16.20% | 17.40% | 16.50% |
Connect & Control Technologies | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 605.6 | $ 596.3 | $ 609.3 |
Operating income (loss) | $ 66.7 | $ 65.2 | $ 54.6 |
Operating margin | 11.00% | 10.90% | 9.00% |
Total segment results | |||
Segment Reporting Information [Line Items] | |||
Revenue | $ 2,588.8 | $ 2,409.8 | $ 2,490.3 |
Operating income (loss) | $ 316.2 | $ 270.1 | $ 322.2 |
Operating margin | 12.20% | 11.20% | 13.00% |
Asbestos-related benefit, net | |||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 19.9 | $ 25.6 | $ 91.4 |
Eliminations / Other corporate costs | |||
Segment Reporting Information [Line Items] | |||
Revenue | (3.5) | (4.4) | (4.7) |
Operating income (loss) | (26.4) | (36.8) | (33.5) |
Total Eliminations / Corporate and Other costs | |||
Segment Reporting Information [Line Items] | |||
Revenue | (3.5) | (4.4) | (4.7) |
Operating income (loss) | $ (6.5) | $ (11.2) | $ 57.9 |
Segment Information - Schedul53
Segment Information - Schedule of Segment Reporting Information by Segment Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||
Assets | $ 3,700.2 | $ 3,601.7 | |
Capital Expenditures | 113.3 | 111.4 | $ 86.7 |
Depreciation and amortization | 105.3 | 102 | 90 |
Industrial Process | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,025.7 | 998.1 | |
Capital Expenditures | 19.3 | 24.4 | 20.4 |
Depreciation and amortization | 27.5 | 27.9 | 27.9 |
Motion Technologies | |||
Segment Reporting Information [Line Items] | |||
Assets | 1,140.4 | 838.4 | |
Capital Expenditures | 79.1 | 73.5 | 39.3 |
Depreciation and amortization | 49.4 | 43.2 | 32.4 |
Connect & Control Technologies | |||
Segment Reporting Information [Line Items] | |||
Assets | 694.8 | 678.4 | |
Capital Expenditures | 10.6 | 11.7 | 23.7 |
Depreciation and amortization | 22.8 | 24.3 | 23.4 |
Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Assets | 839.3 | 1,086.8 | |
Capital Expenditures | 4.3 | 1.8 | 3.3 |
Depreciation and amortization | $ 5.6 | $ 6.6 | $ 6.3 |
Segment Information - Business
Segment Information - Business Segment Information by Geographical Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 2,585.3 | $ 2,405.4 | $ 2,485.6 |
Plant, Property & Equipment, Net | 521.7 | 464.5 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 853.6 | 900.3 | 941.1 |
Plant, Property & Equipment, Net | 168.3 | 181.6 | |
Italy | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Plant, Property & Equipment, Net | 102.9 | 81 | |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Plant, Property & Equipment, Net | 52.1 | 40.2 | |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 389.3 | 324.4 | 290.7 |
Plant, Property & Equipment, Net | 39.1 | 38.5 | |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Plant, Property & Equipment, Net | 34.5 | 28.7 | |
Czech Republic | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Plant, Property & Equipment, Net | 27.9 | 16.8 | |
South Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Plant, Property & Equipment, Net | 27.8 | 28 | |
Other Developed Markets | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 495.5 | 459.6 | 476.8 |
Plant, Property & Equipment, Net | 41.8 | 36 | |
Emerging Growth Markets | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 846.9 | 721.1 | $ 777 |
Plant, Property & Equipment, Net | $ 27.3 | $ 13.7 |
Segment Information - Revenue b
Segment Information - Revenue by Product Category, Net of Intercompany Balances (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||
Revenue | $ 2,585.3 | $ 2,405.4 | $ 2,485.6 |
Pumps and complementary products | |||
Revenue from External Customer [Line Items] | |||
Revenue | 718.8 | 745.1 | 1,025.9 |
Pump support and maintenance services | |||
Revenue from External Customer [Line Items] | |||
Revenue | 88.4 | 84.7 | 87.8 |
Brake component products | |||
Revenue from External Customer [Line Items] | |||
Revenue | 979.7 | 873.4 | 656.7 |
Shock absorber equipment | |||
Revenue from External Customer [Line Items] | |||
Revenue | 196 | 109.6 | 110.2 |
Connectors | |||
Revenue from External Customer [Line Items] | |||
Revenue | 317.9 | 309.1 | 327.9 |
Aerospace control components | |||
Revenue from External Customer [Line Items] | |||
Revenue | 223.1 | 220.8 | 210.7 |
Industrial control components | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 61.4 | $ 62.7 | $ 66.4 |
Restructuring Actions Restruc56
Restructuring Actions Restructuring Actions - Schedule of Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance costs | $ 9.5 | $ 24.3 | $ 21.7 |
Asset write-offs | 1.9 | 0.7 | 1 |
Other restructuring costs | 1.7 | 1.3 | 1.3 |
Total restructuring costs | 13.1 | 26.3 | 24 |
Industrial Process | |||
Restructuring Cost and Reserve [Line Items] | |||
Asset write-offs | (1.8) | (0.5) | |
Total restructuring costs | 7.4 | 20.5 | 12.2 |
Motion Technologies | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring costs | 2.3 | 2.5 | 0 |
Connect & Control Technologies | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring costs | 3.3 | 1.5 | 11.6 |
Corporate and Other [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring costs | $ 0.1 | $ 1.8 | $ 0.2 |
Restructuring Actions Restruc57
Restructuring Actions Restructuring Actions - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)Employees | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | $ 14.6 | $ 20 | |
Restructuring costs | 13.1 | 26.3 | $ 24 |
Cash payments | (17.8) | (30.3) | |
Asset write-offs | 1.9 | 0.7 | 1 |
Foreign exchange translation and other | 0.9 | (0.7) | |
Restructuring Reserve - Ending Balance | 8.9 | 14.6 | 20 |
Industrial Process | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 6.5 | 4.9 | |
Restructuring costs | $ 7.4 | 20.5 | 12.2 |
Number of positions eliminated | Employees | 70 | ||
Cash payments | $ (7.3) | (18) | |
Asset write-offs | (1.8) | (0.5) | |
Foreign exchange translation and other | (0.9) | (0.4) | |
Restructuring Reserve - Ending Balance | 3.9 | 6.5 | $ 4.9 |
Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 14.3 | ||
Restructuring Reserve - Ending Balance | 8 | 14.3 | |
Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve - Beginning Balance | 0.3 | ||
Restructuring Reserve - Ending Balance | $ 0.9 | $ 0.3 |
Income Taxes - Income Tax Data
Income Taxes - Income Tax Data from Continuing Operations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | |
Income (loss) components: | |||||||||
United States | $ 89.2 | $ 87.5 | $ 159.3 | ||||||
International | 220.2 | 170.9 | 223 | ||||||
Income from continuing operations before income tax | 309.4 | 258.4 | 382.3 | ||||||
Current income tax expense (benefit): | |||||||||
United States - federal | 7.7 | 4.3 | (8.5) | ||||||
United States - state and local | 1.3 | (0.3) | 0.1 | ||||||
International | 38.6 | 51.1 | 52.9 | ||||||
Total current income tax expense (benefit) | 47.6 | 55.1 | 44.5 | ||||||
Deferred income tax expense (benefit) components: | |||||||||
United States - federal | 105.9 | 26.4 | 31.9 | ||||||
United States - state and local | 4.4 | (2.1) | 6 | ||||||
International | 36.7 | (3.4) | (12.3) | ||||||
Total deferred income tax expense (benefit) | 147 | 20.9 | 25.6 | ||||||
Income tax expense (benefit) | $ 194.6 | $ 76 | $ 70.1 | ||||||
Effective income tax rate | 62.90% | 62.90% | 29.40% | 29.40% | 18.30% | 18.30% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Tax Provision for Continuing Operations (Detail) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2017Rate | Dec. 31, 2016 | Dec. 31, 2016Rate | Dec. 31, 2015 | Dec. 31, 2015Rate | |
Income Tax Disclosure [Abstract] | ||||||
Tax provision at U.S. statutory rate | 35.00% | 35.00% | 35.00% | |||
Federal deferred taxes remeasurement - Tax Act | 27.80% | 0.00% | 0.00% | |||
One-time tax on foreign earnings - Tax Act | 18.80% | 0.00% | 0.00% | |||
Foreign tax rate differential | (8.60%) | (3.50%) | (4.70%) | |||
Tax exempt interest | (7.80%) | (5.20%) | (6.70%) | |||
Valuation allowance on deferred tax assets | 7.20% | 1.40% | 3.30% | |||
Tax on undistributed foreign earnings | (4.80%) | 4.90% | (5.60%) | |||
U.S. permanent items | (2.20%) | (1.90%) | (1.00%) | |||
Italy patent box prior year benefit | (1.10%) | 0.00% | 0.00% | |||
Audit settlements and unrecognized tax benefits | (0.80%) | (5.20%) | (5.00%) | |||
U.S. tax on foreign earnings | 0.30% | 4.70% | 3.80% | |||
State and local income tax | 0.30% | (0.10%) | 1.00% | |||
Foreign tax holiday | 0.00% | 0.00% | (1.10%) | |||
Other adjustments | (1.20%) | (0.70%) | (0.70%) | |||
Effective income tax rate | 62.90% | 62.90% | 29.40% | 29.40% | 18.30% | 18.30% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets: | ||||
Loss carryforwards | $ 165.5 | $ 112.3 | ||
Asbestos | 118.7 | 209.8 | ||
Employee benefits | 70.8 | 98.9 | ||
Accruals | 51.3 | 74.8 | ||
Credit carryforwards | 5.7 | 50.7 | ||
Other | 23.1 | 21.2 | ||
Gross deferred tax assets | 435.1 | 567.7 | ||
Less: Valuation allowance | 170 | 113.3 | $ 135.7 | $ 147.1 |
Net deferred tax assets | 265.1 | 454.4 | ||
Deferred Tax Liabilities: | ||||
Intangibles | (45.4) | (68.3) | ||
Undistributed earnings | (39) | (52.3) | ||
Accelerated depreciation | (31.8) | (36.5) | ||
Investment | (0.2) | (0.4) | ||
Total deferred tax liabilities | (116.4) | (157.5) | ||
Net deferred tax assets | $ 148.7 | $ 296.9 |
Income Taxes - Deferred Taxes i
Income Taxes - Deferred Taxes in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Non-current assets | $ 149.9 | $ 297.4 |
Other non-current liabilities | (1.2) | (0.5) |
Net deferred tax assets | $ 148.7 | $ 296.9 |
Income Taxes Income Taxes - Rol
Income Taxes Income Taxes - Rollforward of Deferred Tax Assets Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance, Beginning Balance | $ 113.3 | $ 135.7 | $ 147.1 |
Deferred Tax Asset Valuation Allowance, Change in Assessment | (0.3) | (7.4) | |
Deferred Tax Asset Valuation Allowance, Current Year Operations | 56.7 | (22.1) | (4) |
Deferred Tax Assets, Valuation Allowance, Ending Balance | 170 | 113.3 | 135.7 |
Domestic Tax Authority [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance, Beginning Balance | 0 | 0 | 0 |
Deferred Tax Asset Valuation Allowance, Change in Assessment | 0 | 0 | |
Deferred Tax Asset Valuation Allowance, Current Year Operations | 0 | 0 | 0 |
Deferred Tax Assets, Valuation Allowance, Ending Balance | 0 | 0 | 0 |
State and Local Jurisdiction [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance, Beginning Balance | 45.9 | 41.5 | 45 |
Deferred Tax Asset Valuation Allowance, Change in Assessment | 0 | 0 | |
Deferred Tax Asset Valuation Allowance, Current Year Operations | 26.5 | 4.4 | (3.5) |
Deferred Tax Assets, Valuation Allowance, Ending Balance | 72.4 | 45.9 | 41.5 |
Foreign Tax Authority [Member] | |||
Valuation Allowance [Line Items] | |||
Deferred Tax Assets, Valuation Allowance, Beginning Balance | 67.4 | 94.2 | 102.1 |
Deferred Tax Asset Valuation Allowance, Change in Assessment | (0.3) | (7.4) | |
Deferred Tax Asset Valuation Allowance, Current Year Operations | 30.2 | (26.5) | (0.5) |
Deferred Tax Assets, Valuation Allowance, Ending Balance | $ 97.6 | $ 67.4 | $ 94.2 |
Income Taxes - Attributes Avail
Income Taxes - Attributes Available for Utilization (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
U.S. federal net operating losses [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 0.1 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2033 |
U.S. state net operating losses [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 1,326.2 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2018 |
U.S. federal tax credits [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 0.2 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2021 |
U.S. state tax credits [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 5.5 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2020 |
Foreign net operating losses [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 350 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2018 |
Income Taxes - Reconciliation64
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - January 1 | $ 69.5 | $ 87.6 | $ 160.1 |
Additions for: | |||
Current year tax positions | 1.1 | 1.2 | 3.4 |
Prior year tax positions | 0 | 0.2 | 1.8 |
Assumed in acquisition | 0 | 0.2 | 1.9 |
Reductions for: | |||
Prior year tax positions | (12.7) | (3.8) | (56.6) |
Settlements | (0.2) | (10.9) | (19) |
Lapse of statute | (5.8) | (5) | (4) |
Unrecognized tax benefits - December 31 | $ 51.9 | $ 69.5 | $ 87.6 |
Income Taxes - Open Tax Years b
Income Taxes - Open Tax Years by Major Jurisdiction (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
China | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,012 |
Czech Republic | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,011 |
Germany | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,010 |
Italy | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,005 |
Korea | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,012 |
Luxembourg | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,012 |
Mexico | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,012 |
United States | |
Open Tax Years By Major Jurisdiction [Line Items] | |
Open tax years by major jurisdiction | 2,014 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Tax Note Textuals [Line Items] | ||||
Cash and Cash Equivalents | $ 389.8 | $ 460.7 | $ 415.7 | $ 584 |
Net operating loss carryforwards in Luxembourg | 228.1 | |||
Excess Tax benefit from stock activity | 2.7 | |||
Excess tax benefit from equity compensation activity | $ 0 | 3.2 | 3.4 | |
The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement | The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. | |||
Estimated change in unrecognized tax benefits | $ 16 | |||
Interest (income) expense related to tax matters | (2.4) | (2.9) | (5.7) | |
Interest accrued from income tax examinations | 4.1 | 6.8 | 9.8 | |
Tax Matters Agreement Receivable, Total | $ 14.8 | |||
Tax Matters Agreement, Collection | $ 1.5 | |||
Continuing Operations [Member] | ||||
Tax Note Textuals [Line Items] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 24.7 | |||
Discontinued Operations [Member] | ||||
Tax Note Textuals [Line Items] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 2.5 | |||
Impacts from U.S. Tax Act of 2017 [Member] | ||||
Tax Note Textuals [Line Items] | ||||
Dividend Received Deduction Percentage | 100.00% | |||
Deferred taxes not provided for excess of financial reporting over tax basis of investments in foreign subsidiaries | $ 218 | |||
Existing Post 1986 Foreign Earnings Subject to One Time US Tax | 1,200 | |||
One Time Provisional US Tax Expense on Post 1986 Foreign Earnings | 57.9 | |||
Tax Expense on Undistributed Foreign Earnings | 37.6 | |||
Reversal of Previously Recorded Tax Liability on Undistributed Foreign Earnings | $ 52.3 | |||
2018 U.S. Federal Statutory Tax Rate | 21.00% | |||
2017 U.S. Federal Statutory Tax Rate | 35.00% | |||
Remeasurement of US Net Deferred Taxes | $ 86 | |||
Uncertain Deferred Tax Assets for Officer Compensation | $ 3.6 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 88.3 | 89.2 | 89.8 |
Add: Dilutive impact of outstanding equity awards | 0.7 | 0.7 | 0.9 |
Diluted weighted average common shares outstanding | 89 | 89.9 | 90.7 |
Earnings Per Share - Number of
Earnings Per Share - Number of Shares Underlying Stock Options Excluded from Computation of Diluted Loss (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive stock options | 0.3 | 0.7 | 0.4 |
Average exercise price | $ 42.43 | $ 38.34 | $ 42.50 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive stock options | 0.1 | 0.1 | 0.1 |
Minimum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Year(s) of expiration | 2,024 | 2,024 | 2,024 |
Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Year(s) of expiration | 2,025 | 2,026 | 2,025 |
Receivables, Net - Receivables,
Receivables, Net - Receivables, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Insurance Settlements Receivable | $ 19 | ||||
Trade accounts receivable | 601.4 | $ 513.5 | |||
Notes receivable | 3.9 | 4.2 | |||
Other | 40.4 | [1] | 21.6 | ||
Receivables, gross | 645.7 | 539.3 | |||
Less: allowance for doubtful accounts | 16.1 | 15.4 | $ 16.1 | $ 13.3 | |
Receivables, net | $ 629.6 | $ 523.9 | |||
[1] | (a) Other includes an insurance-related settlement receivable of $19.0 |
Receivables, Net - Rollforward
Receivables, Net - Rollforward of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts - January 1 | $ 15.4 | $ 16.1 | $ 13.3 |
Charges to income | 3.6 | 1.5 | 3.6 |
Write-offs | (4.4) | (1.5) | (0.8) |
Foreign currency and other | 1.5 | (0.7) | 0 |
Allowance for doubtful accounts - December 31 | $ 16.1 | $ 15.4 | $ 16.1 |
Inventories, Net - Components o
Inventories, Net - Components of Inventories, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 55.9 | $ 53 |
Work in process | 54.8 | 60.5 |
Raw materials | 184.4 | 166 |
Inventoried costs related to long-term contracts | 38.1 | 33.5 |
Total inventory before progress payments | 333.2 | 313 |
Less - progress payments | (21.3) | (17.8) |
Inventories, net | $ 311.9 | $ 295.2 |
Other Current and Non-Current72
Other Current and Non-Current Assets - Components of Other Current and Non-Current Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Asbestos-related current assets | $ 64.7 | $ 66 |
Prepaid income tax | 30.3 | 7.6 |
Other | 52.4 | 48.4 |
Other current assets | 147.4 | 122 |
Other employee benefit-related assets | 111.3 | 96.5 |
Capitalized software costs | 41.9 | 38.1 |
Environmental-related assets | 24.5 | 33.4 |
Equity method investments | 6.7 | 5.6 |
Other | 18.5 | 14.8 |
Other non-current assets | $ 202.9 | $ 188.4 |
Plant, Property and Equipment73
Plant, Property and Equipment, Net - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 28.7 | $ 28.2 |
Machinery and equipment | 1,039.9 | 898.6 |
Buildings and improvements | 262.5 | 244.6 |
Furniture, fixtures and office equipment | 74.5 | 68 |
Construction work in progress | 58.4 | 68.5 |
Other | 10.9 | 5.3 |
Plant, property and equipment, gross | 1,474.9 | 1,313.2 |
Less - accumulated depreciation | (953.2) | (848.7) |
Plant, property and equipment, net | $ 521.7 | $ 464.5 |
Plant, Property and Equipment74
Plant, Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 78.3 | $ 74.1 | $ 70.7 |
Long Lived Assets Held-for-sale [Line Items] | |||
Purchase Price for Pending Sale of Real Estate | 41 | ||
Minimum [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Estimated Gain from Pending Sale of Real Estate | 38 | ||
Maximum [Member] | |||
Long Lived Assets Held-for-sale [Line Items] | |||
Estimated Gain from Pending Sale of Real Estate | $ 40 |
Goodwill and Other Intangible75
Goodwill and Other Intangible Assets, Net - Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill , beginning balance | $ 774.7 | $ 778.3 |
Goodwill acquired | 91.2 | |
Goodwill, Purchase Accounting Adjustments | (8.2) | 3 |
Foreign currency | 29.1 | (6.6) |
Goodwill , ending Balance | 886.8 | 774.7 |
Industrial Process | ||
Goodwill [Roll Forward] | ||
Goodwill , beginning balance | 308.4 | 312.6 |
Goodwill acquired | 0 | |
Goodwill, Purchase Accounting Adjustments | 0 | 0 |
Foreign currency | 16.1 | (4.2) |
Goodwill , ending Balance | 324.5 | 308.4 |
Motion Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill , beginning balance | 202.3 | 201 |
Goodwill acquired | 91.2 | |
Goodwill, Purchase Accounting Adjustments | (8.2) | 2.6 |
Foreign currency | 10.3 | (1.3) |
Goodwill , ending Balance | 295.6 | 202.3 |
Connect & Control Technologies | ||
Goodwill [Roll Forward] | ||
Goodwill , beginning balance | 264 | 264.7 |
Goodwill acquired | 0 | |
Goodwill, Purchase Accounting Adjustments | 0 | 0.4 |
Foreign currency | 2.7 | (1.1) |
Goodwill , ending Balance | $ 266.7 | $ 264 |
Goodwill and Other Intangible76
Goodwill and Other Intangible Assets, Net - Other Intangible Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 234.1 | $ 217.3 |
Accumulated amortization | (105.4) | (83.7) |
Finite-live intangible asset, net | 128.7 | 133.6 |
Indefinite-lived intangible assets, gross/net carrying amount | 27.5 | 26.7 |
Other intangible assets | 261.6 | 244 |
Other intangible assets, net | 156.2 | 160.3 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 166.2 | 155.8 |
Accumulated amortization | (74.4) | (59.3) |
Finite-live intangible asset, net | $ 91.8 | 96.5 |
Finite-Lived Intangible Asset, Useful Life | 12 years 3 months 18 days | |
Proprietary technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 54.4 | 52.5 |
Accumulated amortization | (21.8) | (16.8) |
Finite-live intangible asset, net | $ 32.6 | 35.7 |
Finite-Lived Intangible Asset, Useful Life | 13 years 2 months 12 days | |
Patents and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 13.5 | 9 |
Accumulated amortization | (9.2) | (7.6) |
Finite-live intangible asset, net | $ 4.3 | $ 1.4 |
Finite-Lived Intangible Asset, Useful Life | 11 years 3 months 18 days |
Goodwill and Other Intangible77
Goodwill and Other Intangible Assets, Net - Estimated Amortization Expense Related to Intangible Assets (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,017 | $ 18.1 |
2,018 | 18.1 |
2,019 | 17.9 |
2,020 | 17.9 |
2,021 | 16.2 |
Thereafter | $ 40.5 |
Goodwill and Other Intangible78
Goodwill and Other Intangible Assets, Net Goodwill Textuals (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Industrial Process | |
Goodwill [Line Items] | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4.1 |
Other Intangible Assets Textual
Other Intangible Assets Textuals (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense related to finite-lived intangible assets | $ 18.9 | $ 20.1 | $ 14 |
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average period (in years) | 12 years 3 months 18 days | ||
Proprietary technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average period (in years) | 13 years 2 months 12 days | ||
Patents and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average period (in years) | 11 years 3 months 18 days | ||
Axtone Railway Components Acquisition [Member] | Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average period (in years) | 12 years | ||
Finite-lived Intangible Assets Acquired | $ 7.6 | ||
Axtone Railway Components Acquisition [Member] | Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average period (in years) | 10 years | ||
Finite-lived Intangible Assets Acquired | $ 2.3 | ||
Industrial Process | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4.1 |
Accrued Liabilities and Other80
Accrued Liabilities and Other Non-Current Liabilities - Accrued Liabilities and Other Non-Current Liabilities, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Compensation and other employee-related benefits | $ 147.2 | $ 120.5 |
Asbestos-related liability | 77.1 | 76.8 |
Customer-related liabilities | 45.5 | 39.9 |
Accrued income taxes and other tax-related liabilities | 36.1 | 31 |
Environmental and other legal matters | 22.8 | 25.1 |
Accrued warranty costs | 17 | 17.4 |
Other accrued liabilities | 38.7 | 39.5 |
Accrued and other current liabilities | 384.4 | 350.2 |
Environmental liabilities | 63.6 | 63.2 |
Compensation and other employee-related benefits | 36.4 | 33 |
Deferred income taxes and other tax-related liabilities | 19.3 | 24.9 |
Other | 56.3 | 59.9 |
Other non-current liabilities | $ 175.6 | $ 181 |
Leases and Rentals - Additional
Leases and Rentals - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | |||
Rental expenses under operating leases | $ 25.4 | $ 21.1 | $ 18.6 |
Leases and Rentals - Future Min
Leases and Rentals - Future Minimum Operating Lease Payments Under Non-Cancellable Operating Leases (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Leases [Abstract] | |
2,018 | $ 24.8 |
2,019 | 20.2 |
2,020 | 17 |
2,021 | 16.6 |
2,022 | 14.4 |
2023 and thereafter | 58.2 |
Total minimum lease payments | $ 151.2 |
Debt - Outstanding Debt (Detail
Debt - Outstanding Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Commercial Paper | $ 162.4 | $ 113.5 |
Short-term loans | 0 | 100 |
Current maturities of long-term debt | 0.9 | 0.6 |
Current capital leases | 0.3 | 0.2 |
Short-term loans and current maturities of long-term debt | 163.6 | 214.3 |
Non-current maturities of long-term debt | 8.2 | 1.8 |
Non-current capital leases | 0.1 | 0.2 |
Long-term debt and capital leases | 8.3 | 2 |
Total debt and capital leases | $ 171.9 | $ 216.3 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Commercial Paper | $ 162,400,000 | $ 113,500,000 |
Short-term loans | 0 | $ 100,000,000 |
ITT 2014 Revolving Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | 500,000,000 | |
Maximum face amount outstanding on letters of credit | 100,000,000 | |
Minimum amount of reduce commitments | 10,000,000 | |
Maximum potential increase in credit facility | 200,000,000 | |
Maximum potential credit facility outstanding | $ 700,000,000 | |
Maximum Leverage Ratio Under Credit Facility | 3 | |
Minimum leverage ratio under credit facility | 1 | |
Maximum interest coverage ratio under credit facility | 3 | |
Minimum interest coverage ratio under credit facility | 1 | |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.09% | 1.14% |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.87% |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Summary of Funded Status of Postretirement Benefit Plans and Presentation of Such Balances within Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 326.7 | $ 269.2 | $ 286.9 |
Projected benefit obligation | 557.1 | 531 | 561.3 |
Funded status | (230.4) | (261.8) | |
Pension and Other Postretirement Defined Benefit Plans, Assets, Noncurrent | 10.3 | 0 | |
Amounts reported within: | |||
Accrued liabilities | (13.4) | (13.2) | |
Non-current liabilities | (227.3) | (248.6) | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 321.5 | 263.1 | |
Projected benefit obligation | 419 | 392.2 | |
Funded status | (97.5) | (129.1) | |
Pension and Other Postretirement Defined Benefit Plans, Assets, Noncurrent | 10.3 | 0 | |
Amounts reported within: | |||
Accrued liabilities | (4.8) | (3.7) | |
Non-current liabilities | (103) | (125.4) | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5.2 | 6.1 | 7.9 |
Projected benefit obligation | 138.1 | 138.8 | $ 143.4 |
Funded status | (132.9) | (132.7) | |
Pension and Other Postretirement Defined Benefit Plans, Assets, Noncurrent | 0 | 0 | |
Amounts reported within: | |||
Accrued liabilities | (8.6) | (9.5) | |
Non-current liabilities | $ (124.3) | $ (123.2) |
Postretirement Benefit Plans 86
Postretirement Benefit Plans - Amount Recognized in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 197.4 | $ 213.6 |
Prior service cost (benefit) | (42.3) | (45.4) |
Total | 155.1 | 168.2 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 141.1 | 154 |
Prior service cost (benefit) | 2 | 5.1 |
Total | 143.1 | 159.1 |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 56.3 | 59.6 |
Prior service cost (benefit) | (44.3) | (50.5) |
Total | $ 12 | $ 9.1 |
Postretirement Benefit Plans 87
Postretirement Benefit Plans - Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation | |||
Benefit obligation – January 1 | $ 531 | $ 561.3 | |
Service cost | 6.8 | 6.3 | |
Interest cost | 16.5 | 18.3 | |
Amendments | 2 | 0.4 | |
Actuarial loss (gain) | 20.7 | 8.2 | |
Benefits and expenses paid | (33.6) | (32.7) | |
Acquired | 3.5 | 0 | |
Settlement | (0.4) | (28.5) | |
Curtailment | 0 | (0.2) | |
Foreign currency translation | 10.6 | (2.1) | |
Benefit obligation – December 31 | 557.1 | 531 | $ 561.3 |
Other Postretirement Benefits Plan [Member] | |||
Change in benefit obligation | |||
Benefit obligation – January 1 | 138.8 | 143.4 | |
Service cost | 0.8 | 0.9 | 0.9 |
Interest cost | 4.4 | 4.9 | 5 |
Amendments | 0.4 | 0 | |
Actuarial loss (gain) | 1.9 | (1.9) | |
Benefits and expenses paid | (8.2) | (8.5) | |
Acquired | 0 | 0 | |
Settlement | 0 | 0 | |
Curtailment | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Benefit obligation – December 31 | 138.1 | 138.8 | 143.4 |
Pension Plan [Member] | |||
Change in benefit obligation | |||
Benefit obligation – January 1 | 392.2 | ||
Service cost | 6 | 5.4 | 5 |
Interest cost | 12.1 | 13.4 | 14.5 |
Settlement | (1.4) | ||
Benefit obligation – December 31 | 419 | 392.2 | |
U.S. Plan [Member] | |||
Change in benefit obligation | |||
Settlement | (26.6) | ||
U.S. Plan [Member] | Pension Plan [Member] | |||
Change in benefit obligation | |||
Benefit obligation – January 1 | 312.3 | 339.9 | |
Service cost | 4.6 | 4.1 | 3.5 |
Interest cost | 10.5 | 11.9 | 13 |
Amendments | 1.6 | 0 | |
Actuarial loss (gain) | 19.1 | 5.9 | |
Benefits and expenses paid | (22.4) | (21.5) | |
Acquired | 0 | 0 | |
Settlement | 0 | (28) | |
Curtailment | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Benefit obligation – December 31 | 325.7 | 312.3 | 339.9 |
International Plan [Member] | Pension Plan [Member] | |||
Change in benefit obligation | |||
Benefit obligation – January 1 | 79.9 | 78 | |
Service cost | 1.4 | 1.3 | 1.5 |
Interest cost | 1.6 | 1.5 | 1.5 |
Amendments | 0 | 0.4 | |
Actuarial loss (gain) | (0.3) | 4.2 | |
Benefits and expenses paid | (3) | (2.7) | |
Acquired | 3.5 | 0 | |
Settlement | (0.4) | (0.5) | |
Curtailment | 0 | (0.2) | |
Foreign currency translation | 10.6 | (2.1) | |
Benefit obligation – December 31 | $ 93.3 | $ 79.9 | $ 78 |
Postretirement Benefit Plans 88
Postretirement Benefit Plans - Changes in Fair Value of Plan Assets of Pension and Other Employee-Related Defined Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets | ||
Plan assets - January 1 | $ 269.2 | $ 286.9 |
Actual return on plan assets | 46.4 | 24.5 |
Employer contributions | 45 | 19 |
Benefits and expenses paid | (33.6) | (32.7) |
Settlement | (0.4) | (28.5) |
Foreign currency translation | 0.1 | 0 |
Plan assets - December 31 | 326.7 | 269.2 |
Funded status at end of year | (230.4) | (261.8) |
Other Postretirement Benefits Plan [Member] | ||
Change in plan assets | ||
Plan assets - January 1 | 6.1 | 7.9 |
Actual return on plan assets | 1.2 | 0.5 |
Employer contributions | 6.1 | 6.2 |
Benefits and expenses paid | (8.2) | (8.5) |
Settlement | 0 | 0 |
Foreign currency translation | 0 | 0 |
Plan assets - December 31 | 5.2 | 6.1 |
Funded status at end of year | (132.9) | (132.7) |
Pension Plan [Member] | ||
Change in plan assets | ||
Plan assets - January 1 | 263.1 | |
Plan assets - December 31 | 321.5 | 263.1 |
Funded status at end of year | (97.5) | (129.1) |
Pension Plan [Member] | International Plan [Member] | ||
Change in plan assets | ||
Plan assets - January 1 | 0.9 | 0.9 |
Actual return on plan assets | 0 | 0 |
Employer contributions | 3 | 3.2 |
Benefits and expenses paid | (3) | (2.7) |
Settlement | (0.4) | (0.5) |
Foreign currency translation | 0.1 | 0 |
Plan assets - December 31 | 0.6 | 0.9 |
Funded status at end of year | (92.7) | (79) |
Pension Plan [Member] | U.S. Plan [Member] | ||
Change in plan assets | ||
Plan assets - January 1 | 262.2 | 278.1 |
Actual return on plan assets | 45.2 | 24 |
Employer contributions | 35.9 | 9.6 |
Benefits and expenses paid | (22.4) | (21.5) |
Settlement | 0 | (28) |
Foreign currency translation | 0 | 0 |
Plan assets - December 31 | 320.9 | 262.2 |
Funded status at end of year | $ (4.8) | $ (50.1) |
Postretirement Benefit Plans 89
Postretirement Benefit Plans - Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Postemployment Benefits [Abstract] | ||
Projected benefit obligation | $ 107.8 | $ 391.6 |
Accumulated benefit obligation | 105.4 | 388.8 |
Fair value of plan assets | $ 0 | $ 262.2 |
Postretirement Benefit Plans 90
Postretirement Benefit Plans - Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net periodic postretirement cost | |||
Service cost | $ 6.8 | $ 6.3 | |
Interest cost | 16.5 | 18.3 | |
Other Postretirement Benefits Plan [Member] | |||
Net periodic postretirement cost | |||
Service cost | 0.8 | 0.9 | $ 0.9 |
Interest cost | 4.4 | 4.9 | 5 |
Expected return on plan assets | (0.3) | (0.5) | (0.9) |
Amortization of net actuarial loss | 4.4 | 4.6 | 4.6 |
Amortization of prior service cost | (5.8) | (6.5) | (11) |
Net periodic postretirement cost | 3.5 | 3.4 | (1.4) |
Curtailment or settlement charges | 0 | 0 | (4.2) |
Total net periodic postretirement cost | 3.5 | 3.4 | (5.6) |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | |||
Net actuarial (gain) loss | 1 | (1.9) | 7.7 |
Prior service cost | 0.5 | 0 | 0 |
Amortization of net actuarial (loss) gain | (4.4) | (4.6) | (4.6) |
Amortization of prior service cost | 5.8 | 6.5 | 11 |
Acceleration of prior service costs | 0 | 0 | 6.2 |
Total change recognized in other comprehensive loss | 2.9 | 0 | 20.3 |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | 6.4 | 3.4 | 14.7 |
Pension Plan [Member] | |||
Net periodic postretirement cost | |||
Service cost | 6 | 5.4 | 5 |
Interest cost | 12.1 | 13.4 | 14.5 |
Expected return on plan assets | (18.3) | (20.1) | (20.8) |
Amortization of net actuarial loss | 7.6 | 7.8 | 8.5 |
Amortization of prior service cost | 1 | 0.9 | 1 |
Net periodic postretirement cost | 8.4 | 7.4 | 8.2 |
Curtailment or settlement charges | 3.7 | 12.7 | 0.1 |
Total net periodic postretirement cost | 12.1 | 20.1 | 8.3 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | |||
Net actuarial (gain) loss | (8.2) | 6.1 | 11 |
Prior service cost | 1.6 | 0.4 | 0 |
Amortization of net actuarial (loss) gain | (7.6) | (20.5) | (8.6) |
Amortization of prior service cost | (4.7) | (0.9) | (1) |
Foreign currency translation | 2.9 | (0.5) | (2.5) |
Total change recognized in other comprehensive loss | (16) | (15.4) | (1.1) |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | (3.9) | 4.7 | 7.2 |
International Plan [Member] | Pension Plan [Member] | |||
Net periodic postretirement cost | |||
Service cost | 1.4 | 1.3 | 1.5 |
Interest cost | 1.6 | 1.5 | 1.5 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss | 1 | 0.7 | 1 |
Amortization of prior service cost | 0 | 0 | 0 |
Net periodic postretirement cost | 4 | 3.5 | 4 |
Curtailment or settlement charges | 0 | 0 | 0.1 |
Total net periodic postretirement cost | 4 | 3.5 | 4.1 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | |||
Net actuarial (gain) loss | (0.3) | 4 | (2.9) |
Prior service cost | 0 | 0.4 | 0 |
Amortization of net actuarial (loss) gain | (1) | (0.7) | (1.1) |
Amortization of prior service cost | 0 | 0 | 0 |
Foreign currency translation | 2.9 | (0.5) | (2.5) |
Total change recognized in other comprehensive loss | 1.6 | 3.2 | (6.5) |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | 5.6 | 6.7 | (2.4) |
U.S. Plan [Member] | Pension Plan [Member] | |||
Net periodic postretirement cost | |||
Service cost | 4.6 | 4.1 | 3.5 |
Interest cost | 10.5 | 11.9 | 13 |
Expected return on plan assets | (18.3) | (20.1) | (20.8) |
Amortization of net actuarial loss | 6.6 | 7.1 | 7.5 |
Amortization of prior service cost | 1 | 0.9 | 1 |
Net periodic postretirement cost | 4.4 | 3.9 | 4.2 |
Curtailment or settlement charges | 3.7 | 12.7 | 0 |
Total net periodic postretirement cost | 8.1 | 16.6 | 4.2 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | |||
Net actuarial (gain) loss | (7.9) | 2.1 | 13.9 |
Prior service cost | 1.6 | 0 | 0 |
Amortization of net actuarial (loss) gain | (6.6) | (19.8) | (7.5) |
Amortization of prior service cost | (4.7) | (0.9) | (1) |
Foreign currency translation | 0 | 0 | 0 |
Total change recognized in other comprehensive loss | (17.6) | (18.6) | 5.4 |
Total impact from net periodic postretirement cost and changes in other comprehensive loss | $ (9.5) | $ (2) | $ 9.6 |
Postretirement Benefit Plans 91
Postretirement Benefit Plans - Net Loss and Prior Service Cost that will be Amortized from Accumulated Other Comprehensive Income Loss (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 10.2 |
Prior service cost (credit) | (4.4) |
Total | 5.8 |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 5.9 |
Prior service cost (credit) | 0.9 |
Total | 6.8 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 4.3 |
Prior service cost (credit) | (5.3) |
Total | $ (1) |
Postretirement Benefit Plans 92
Postretirement Benefit Plans - Weighted-Average Assumptions used to Determine Benefit Obligations (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cost Assumptions: | |||
Expected return on plan assets | 7.00% | 7.20% | 8.00% |
Other Postretirement Benefits Plan [Member] | |||
Obligation Assumptions: | |||
Discount rate | 3.60% | 4.10% | |
Cost Assumptions: | |||
Discount rate | 4.10% | 4.10% | |
Expected return on plan assets | 7.00% | 7.20% | |
U.S. Plan [Member] | Pension Plan [Member] | |||
Obligation Assumptions: | |||
Discount rate | 3.60% | 4.20% | |
Cost Assumptions: | |||
Discount rate | 4.20% | 4.30% | |
Expected return on plan assets | 7.00% | 7.20% | |
International Plan [Member] | Pension Plan [Member] | |||
Obligation Assumptions: | |||
Discount rate | 1.70% | 1.70% | |
Rate of future compensation increase | 3.30% | 3.40% | |
Cost Assumptions: | |||
Discount rate | 1.70% | 2.30% | |
Expected return on plan assets | 1.00% | 4.80% |
Postretirement Benefit Plans 93
Postretirement Benefit Plans - Actual Versus Expected Long-Term Returns for Our Domestic Pension Plans (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |||
Expected rate of return on plan assets | 7.00% | 7.20% | 8.00% |
Actual rate of return on plan assets | 18.00% | 9.20% | (2.80%) |
Postretirement Benefit Plans 94
Postretirement Benefit Plans - Asset Allocation Range (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 22.00% | 26.00% |
International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 8.00% | 22.00% |
Fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 68.00% | 51.00% |
Cash and other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 2.00% | 1.00% |
Minimum [Member] | U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 0 | |
Minimum [Member] | International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 0 | |
Minimum [Member] | Fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 0.5 | |
Minimum [Member] | Cash and other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 0 | |
Maximum [Member] | U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 0.5 | |
Maximum [Member] | International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 0.25 | |
Maximum [Member] | Fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 1 | |
Maximum [Member] | Cash and other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation Range | 0.1 |
Postretirement Benefit Plans 95
Postretirement Benefit Plans - Fair Value of Plan Assets Held by Our Postretirement Benefits Plans (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | $ 326.7 | $ 269.2 | $ 286.9 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 321.5 | 263.1 | |
Pension Plan [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 70.6 | 67.4 | |
Pension Plan [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 26.6 | 58.9 | |
Pension Plan [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 218.7 | 135 | |
Pension Plan [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Pension Plan [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 5.6 | 1.8 | |
Pension Plan [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 5.6 | 1.8 | |
Pension Plan [Member] | Level 1 [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Pension Plan [Member] | Level 1 [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 5.6 | 1.8 | |
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 5.2 | 6.1 | $ 7.9 |
Other Postretirement Benefits Plan [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 5.2 | 6.1 | |
Other Postretirement Benefits Plan [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 5.2 | 6.1 | |
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 5.2 | 6.1 | |
Other Postretirement Benefits Plan [Member] | Level 1 [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 315.9 | 261.3 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension Plan [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 70.6 | 67.4 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension Plan [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 26.6 | 58.9 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension Plan [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 218.7 | 135 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension Plan [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0 | 0 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension Plan [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | $ 0 | $ 0 |
Postretirement Benefit Plans 96
Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 10.8 |
2,019 | 10.4 |
2,020 | 10.2 |
2,021 | 10 |
2,022 | 9.5 |
2023 - 2027 | 41.7 |
U.S. Plan [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 24.9 |
2,019 | 24.2 |
2,020 | 23.1 |
2,021 | 22.8 |
2,022 | 22.3 |
2023 - 2027 | 103.2 |
International Plan [Member] | Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | 3.9 |
2,019 | 3.6 |
2,020 | 4.4 |
2,021 | 3.9 |
2,022 | 4.2 |
2023 - 2027 | $ 19.5 |
Postretirement Benefit Plans 97
Postretirement Benefit Plans - Additional Information (Detail) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)ParticipantRateshares | Dec. 31, 2016USD ($)Employees | Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions to defined contribution plans | $ 16.7 | $ 17.3 | $ 18.4 |
Shares of ITT Stock Held in Defined Contribution Plan | shares | 0.2 | ||
Active participants in numerous defined benefit pension plans | Participant | 2,000 | ||
Accumulated benefit obligation | $ 416.7 | $ 389.4 | |
Number of Employees Offered a Pension Settlement | Employees | 1,100 | ||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0.4 | $ 28.5 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0.4 | $ 28.5 | |
Assumed rate of future decrease in per capita cost of health care for 2027 | 4.50% | ||
Effect of one percent increase on benefit obligation | $ 7.5 | ||
Effect of one percent increase on annual service and interest cost components | 0.3 | ||
Effect of one percent decrease on benefit obligation | 6.4 | ||
Effect of one percent decrease on annual service and interest cost components | $ 0.3 | ||
Reduction to Investment Target Allocation for Fixed Income | 20.00% | 15.00% | |
Long-term annual rate of return for domestic pension plans | 7.00% | 7.20% | 8.00% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-Term Return on Assets, Estimate for Next Year | 6.00% | ||
Contributions to postretirement plans | $ 45 | $ 19 | $ 18.6 |
Employer contributions | 45 | 19 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment or settlement charges | 3.7 | 12.7 | 0.1 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 1.4 | ||
Contributions to postretirement plans | 38.9 | 12.8 | |
Discretionary Pension Contribution | 35 | 7.8 | |
Defined Benefit Plan, Expected Employer Contributions Next Fiscal Year | 5 | ||
Other Postretirement Benefits Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment or settlement charges | 0 | 0 | (4.2) |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | $ 0 | |
Long-term annual rate of return for domestic pension plans | 7.00% | 7.20% | |
Defined Benefit Plan, Expected Employer Contributions Next Fiscal Year | $ 8 | ||
Employer contributions | $ 6.1 | $ 6.2 | |
International Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | 22.00% | ||
International Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment or settlement charges | $ 0 | 0 | 0.1 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0.4 | 0.5 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0.4 | $ 0.5 | |
Long-term annual rate of return for domestic pension plans | 1.00% | 4.80% | |
Employer contributions | $ 3 | $ 3.2 | |
U.S. Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 26.6 | ||
U.S. Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment or settlement charges | 3.7 | 12.7 | $ 0 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0 | 28 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | $ 0 | $ 28 | |
Long-term annual rate of return for domestic pension plans | 7.00% | 7.20% | |
Employer contributions | $ 35.9 | $ 9.6 | |
Pre Age Sixty Five [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed rate of future increase in per capita cost of health care for 2018 | 7.00% | ||
Post-age 65 retirees [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Assumed rate of future increase in per capita cost of health care for 2018 | 6.50% | ||
Pension Plan For Bargaining Unit Employees Seneca Falls [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | 35.00% | ||
Consolidated Hourly Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | 39.00% | ||
Other Non Qualified Us Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected Benefit Obligation | 4.00% | ||
Equity Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | Rate | 30.00% | ||
Fixed Income Securities [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | Rate | 70.00% |
Long-Term Incentive Employee 98
Long-Term Incentive Employee Compensation Long-Term Incentive Employee Compensation Costs (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation expense, equity-based awards | $ 18.1 | $ 12.6 | $ 15.7 |
Share-based compensation expense, liability-based awards | 2.8 | 1.8 | 1.1 |
Total share-based compensation expense in operating income (loss) | $ 20.9 | $ 14.4 | $ 16.8 |
Long-Term Incentive Employee 99
Long-Term Incentive Employee Compensation Rollforward of Outstanding Stock Options (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares | |||
Beginning Balance, Shares | 1.4 | 1.7 | 1.9 |
Stock Options Granted, Shares | 0.4 | 0.2 | |
Stock Options Exercised, Shares | (0.5) | (0.6) | (0.3) |
Stock Options Canceled or Expired, Shares | (0.1) | (0.1) | |
Stock Options Outstanding at the end of Year, Shares | 0.9 | 1.4 | 1.7 |
Stock Options Exercisable at the end of year, Shares | 0.5 | 0.8 | 1.1 |
Weighted Average Exercise Price | |||
Beginning Balance, Weighted Average Exercise Price | $ 30.57 | $ 27.10 | $ 24.20 |
Stock Options Granted, Weighted Average Exercise Price | 0 | 33.01 | 41.52 |
Stock Options Exercised, Weighted Average Exercise Price | 22.95 | 20.88 | 19.87 |
Stock Options Canceled or Expired, Weighted Average Exercise Price | 0 | 39.03 | 35.95 |
Outstanding, Weighted Average Exercise Price | 34.07 | 30.57 | 27.10 |
Stock Options Exercisable at the end of year, Weighted Average Exercise Price | $ 32.24 | $ 24.41 | $ 21.75 |
Long-Term Incentive Employee100
Long-Term Incentive Employee Compensation Summary of Stock Options by Exercise Price (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.9 | 1.4 | 1.7 | 1.9 |
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 6 years 6 months | |||
Options Outstanding Aggregate Intrinsic Value | $ 17.3 | |||
Options Exercisable Number | 0.5 | 0.8 | 1.1 | |
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 5 years 4 months 24 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 10 | |||
Less than $23.00 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.1 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 3 years 6 months | |||
Options Outstanding Aggregate Intrinsic Value | $ 3.4 | |||
Options Exercisable Number | 0.1 | |||
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 3 years 6 months | |||
Options Exercisable Aggregate Intrinsic Value | $ 3.4 | |||
$26.76 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.1 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 5 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 4.2 | |||
Options Exercisable Number | 0.1 | |||
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 5 years 2 months 12 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 4.2 | |||
$33.01 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.3 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 8 years 1 month 6 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 6.1 | |||
Options Exercisable Number | 0.1 | |||
Options Exercisable Aggregate Intrinsic Value | $ 0.6 | |||
$41.52 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.2 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 7 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 2.2 | |||
Options Exercisable Number | 0.1 | |||
Options Exercisable Aggregate Intrinsic Value | $ 0.4 | |||
$43.52 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.2 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 6 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 1.4 | |||
Options Exercisable Number | 0.1 | |||
Options Exercisable Aggregate Intrinsic Value | $ 1.4 |
Long-Term Incentive Employee101
Long-Term Incentive Employee Compensation Stock Option Grant Date Fair Value Weighted Average Assumptions (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 1.50% | 1.10% |
Expected volatility | 32.20% | 29.40% |
Expected life | 6 years | 5 years 9 months 18 days |
Risk-free rates | 1.50% | 1.70% |
Weighted-average grant date fair value | $ 9.16 | $ 11.23 |
Long-Term Incentive Employee102
Long-Term Incentive Employee Compensation Rollforward of Outstanding Restricted Stock (Detail) - RSUs, PSUs and RSAs [Member] - $ / shares shares in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning Outstanding, shares | 1.1 | 1.3 | 1.1 | |
Granted , shares | 0.5 | 0.5 | 0.5 | |
Performance Adjustment, shares | [1] | 0 | (0.1) | 0.1 |
Lapsed, shares | (0.2) | (0.5) | (0.3) | |
Cancelled, shares | (0.2) | (0.1) | (0.1) | |
Ending Outstanding, shares | 1.2 | 1.1 | 1.3 | |
Performance Units Vested Not Yet Issued | 0.1 | 0 | 0.3 | |
Outstanding, Weighted Average Grant Date Fair Value | $ 38.24 | $ 36.56 | $ 31.70 | |
Granted, Weighted Average Grant Date Fair Value | 42.52 | 33.28 | 41.34 | |
Performance Adjustment, Weighted Average Grant Date Fair Value | 0 | 45.47 | 29.59 | |
Lapsed, Weighted Average Grant Date Fair Value | 41.42 | 29.86 | 24.09 | |
Canceled, Weighted Average Grant Date Fair Value | 41.75 | 39.20 | 35.89 | |
Outstanding, Weighted Average Grant Date Fair Value | 38.74 | 38.24 | 36.56 | |
Weighted Average Grant Date Fair Value of Performance Units Vested Not Yet Issued | $ 42.90 | $ 0 | $ 29.59 | |
[1] | (a)Represents the adjustment to the number of shares to be issued above or below target for performance results achieved relative to PSUs granted in 2015 that vested on December 31, 2017, PSUs granted in 2014 that vested on December 31, 2016 and PSUs granted in 2013 that vested on December 31, 2015. |
Long-Term Incentive Employee103
Long-Term Incentive Employee Compensation Outstanding RSUs, Cash Settled RSUs and PSUs (Detail) - shares shares in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Equity settled RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity and Cash settled shares | 0.7 | 0.7 | 0.7 |
Cash settled RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity and Cash settled shares | 0.1 | 0.1 | 0.1 |
PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity and Cash settled shares | 0.4 | 0.3 | 0.5 |
Long-Term Incentive Employee104
Long-Term Incentive Employee Compensation Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 23, 2017 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares initially available for awards under this Stock Option plan | 4,600,000 | ||||
Share available for future grant under stock option | 38,200,000 | ||||
Share-based compensation, vesting period | 3 years | ||||
Contractual period | 10 years | ||||
Intrinsic value of options exercised | $ 10.6 | $ 9.6 | $ 6.6 | ||
Cash received from the exercise of stock options | 11.2 | 12.3 | 6.2 | ||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 7 | 10.5 | 6.3 | ||
Excess Tax benefit from stock activity | 2.7 | ||||
Excess Tax Benefit from Share-based Compensation, Financing Activities | $ 0 | $ 3.2 | $ 3.4 | ||
Options Outstanding Number | 900,000 | 1,400,000 | 1,700,000 | 1,900,000 | |
Dividend yield | 1.50% | 1.10% | |||
Share Price | $ 53.37 | $ 41.68 | |||
Equity Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested options and restricted stock | $ 17.1 | ||||
Unrecognized compensation cost weighted average amortization period (years) | 1 year 9 months 18 days | ||||
Liability Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested options and restricted stock | $ 2.9 | ||||
Unrecognized compensation cost weighted average amortization period (years) | 1 year 9 months 18 days | ||||
PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of shares expected to vest | 300,000 | ||||
TSR Plan Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend yield | 1.23% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend | $ 0.512 | ||||
Share Price | $ 41.68 | ||||
ROIC Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend yield | 1.23% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend | $ 0.512 | ||||
Out of the Money Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options Outstanding Number | 0 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) | 12 Months Ended | 135 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Oct. 27, 2006 | |
Class of Stock [Line Items] | |||||
Aggregate common stock and preferred stock authorized | 300,000,000 | 300,000,000 | |||
Common stock, authorized | 250,000,000 | 250,000,000 | 250,000,000 | ||
Common stock, par value | $ 1 | $ 1 | $ 1 | ||
Preferred Stock, authorized | 50,000,000 | 50,000,000 | |||
Preferred Stock, outstanding | 0 | 0 | 0 | ||
Dividends declared per common share | $ 0.512 | $ 0.496 | $ 0.4732 | ||
Share repurchase program | $ 1,000,000,000 | ||||
Shares purchased under share repurchase program | 800,000 | 2,000,000 | 2,000,000 | 21,200,000 | |
Cost of shares repurchased under share repurchase program | $ 30,000,000 | $ 70,000,000 | $ 80,000,000 | $ 859,400,000 | |
Number of share repurchased under settlement of employee tax withholding obligations | 100,000 | 200,000 | 100,000 | ||
Shares repurchased aggregate value under settlement of employee tax withholding obligations | $ 2,900,000 | $ 7,800,000 | $ 4,000,000 | ||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Shares purchased under share repurchase program | 900,000 | 2,200,000 | 2,100,000 | ||
Cost of shares repurchased under share repurchase program | $ 900,000 | $ 2,200,000 | $ 2,100,000 | ||
Activity from stock incentive plans | 700,000 | 1,100,000 | 600,000 |
Commitments and Contingencies -
Commitments and Contingencies - Activity Related to Asbestos Claims (Detail) - Asbestos Related Matters [Member] - Claim Claim in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Pending Claims [Roll Forward] | |||
Pending claims - Beginning | 30 | 37 | 62 |
New claims | 4 | 4 | 4 |
Settlements | (2) | (1) | (1) |
Dismissals | (6) | (10) | (28) |
Pending claims - Ending | 26 | 30 | 37 |
Active [Member] | |||
Number of Pending Claims [Roll Forward] | |||
Pending claims - Ending | 26 |
Commitments and Contingencie107
Commitments and Contingencies - Summary of Net Asbestos Charges (Detail) - Asbestos Related Matters [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asbestos Related Contingencies [Line Items] | |||
Asbestos provision | $ 56.5 | $ 59 | |
Asbestos remeasurement, net | (76.4) | (81.8) | |
Change in Defense Cost Estimate for Asbestos Matters | 0 | 4.9 | |
Settlement Agreement | 0 | (2.1) | |
Continuing Operations [Member] | |||
Asbestos Related Contingencies [Line Items] | |||
Asbestos provision | 56.5 | 59 | $ 63 |
Asbestos remeasurement, net | (76.4) | (81.8) | (44.8) |
Change in Defense Cost Estimate for Asbestos Matters | 0 | (4.9) | (100.7) |
Settlement Agreement | 0 | 2.1 | (8.9) |
Net asbestos charge | $ (19.9) | $ (25.6) | $ (91.4) |
Commitments and Contingencie108
Commitments and Contingencies - Roll forward of Asbestos Liability and Related Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in estimate during the period: | ||
Asbestos-related liability | $ 77.1 | $ 76.8 |
Asbestos-related current assets | 64.7 | 66 |
Noncurrent portion | 800.1 | 877.5 |
Noncurrent Asbestos Related Assets | 304 | 314.6 |
Asbestos Related Matters [Member] | ||
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||
Net Balance, Beginning | 573.7 | 630.8 |
Changes in estimate during the period: | ||
Continuing operations | (56.5) | (59) |
Asbestos remeasurement | (76.4) | (81.8) |
Settlement Agreement | 0 | 2.1 |
Change in Defense Cost Estimate for Asbestos Matters | 0 | 4.9 |
Net cash activity | (45.3) | (31.5) |
Balance, Ending | 573.7 | |
Estimated asbestos exposure, net of expected recoveries from insurers and other responsible parties | 508.5 | 573.7 |
Asbestos Related Matters [Member] | Liability [Member] | ||
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||
Balance, Beginning | 954.3 | 1,042.8 |
Changes in estimate during the period: | ||
Continuing operations | (67.1) | (68.8) |
Asbestos remeasurement | (66.4) | (75.9) |
Settlement Agreement | 0 | |
Change in Defense Cost Estimate for Asbestos Matters | 0 | 4.9 |
Net cash activity | (77.8) | (76.5) |
Balance, Ending | 877.2 | 954.3 |
Noncurrent portion | 877.5 | |
Asbestos Related Matters [Member] | Asset [Member] | ||
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||
Balance, Beginning | 380.6 | 412 |
Changes in estimate during the period: | ||
Continuing operations | 10.6 | 9.8 |
Asbestos remeasurement | (10) | (5.9) |
Settlement Agreement | 0 | 2.1 |
Change in Defense Cost Estimate for Asbestos Matters | 0 | 0 |
Net cash activity | 32.5 | 45 |
Balance, Ending | $ 368.7 | $ 380.6 |
Commitments and Contingencie109
Commitments and Contingencies - Additional Information (Detail) Claim in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($)Claim | Dec. 31, 2015USD ($)Claim | Dec. 31, 2014Claim | |
Other Commitments [Line Items] | ||||
Asbestos-related liability and asset measurement period | 10 years | |||
Asbestos Related Matters [Member] | ||||
Other Commitments [Line Items] | ||||
Outstanding Active Pending Asbestos Claims | Claim | 26 | 30 | 37 | 62 |
Percentage of asbestos liability related to pending claims | 23.00% | |||
Percentage of Estimated Receivable from Insurers with A- or Better Credit Rating | 77.00% | |||
Percentage of Asbestos Asset Related to Coverage in Place Agreements | 42.00% | |||
Benefit from Settlement Agreement with Asbestos Insurers | $ 2.1 | $ (8.9) | ||
Change in Defense Cost Estimate for Asbestos Matters | $ 0 | 4.9 | ||
Continuing Operations [Member] | Asbestos Related Matters [Member] | ||||
Other Commitments [Line Items] | ||||
Change in Defense Cost Estimate for Asbestos Matters | $ 0 | $ (4.9) | $ (100.7) |
Commitments and Contingencie110
Commitments and Contingencies - Rollforward of Environmental Liability and Related Assets (Detail) - Liability [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Environmental Liability And Related Assets [Line items] | ||
Changes In Pre-Existing Environmental Accruals | $ 8.8 | $ 5.9 |
Environmental Related Matters [Member] | ||
Environmental Liability and Related Assets [Roll Forward] | ||
Environmental liability - Beginning balance | 76.6 | 82.6 |
Net cash activity, Liability | (11.7) | (11.9) |
Foreign currency, Liability | 0.2 | |
Environmental liability - Ending balance | $ 73.9 | $ 76.6 |
Commitments and Contingencie111
Commitments and Contingencies - Range of Environmental Liability and Number of Active Sites for Environmental Matters (Detail) - Environmental Related Matters [Member] $ in Millions | Dec. 31, 2017USD ($)site | Dec. 31, 2016USD ($)site |
Environmental Matters Range Of Estimated Liability And Active Sites Numbers [Line Items] | ||
Number of active environmental investigation and remediation sites | site | 36 | 39 |
Maximum [Member] | ||
Environmental Matters Range Of Estimated Liability And Active Sites Numbers [Line Items] | ||
Possible High End Range of Environmental Liability | $ | $ 126.3 | $ 127.6 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Environmental Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Environmental-related assets | $ 24.5 | $ 33.4 | |
Discontinued Operations [Member] | |||
Accrual for Environmental Loss Contingencies, Increase (Decrease) for Revision in Estimates | 3.7 | (0.7) | |
Environmental Issue [Member] | |||
Gross Settlement with Insurance Provider for Environmental Matters | $ 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 | ||
Reduction to Environmental QSF Asset due to Settlement Agreement | 5.2 | ||
Recognition of Environmental QSF Deferred Gain due to Amendment | $ 3.8 |
Commitments and Contingencies O
Commitments and Contingencies Other Matters (Details) $ in Millions | Dec. 31, 2017USD ($) |
Unfavorable Regulatory Action [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Estimate of Possible Loss | $ 5 |
Guarantees, Indemnities and 114
Guarantees, Indemnities and Warranties - Additional Information (Detail) $ in Millions | Dec. 31, 2017USD ($) |
Guarantees [Abstract] | |
Guarantees, letters of credit and similar arrangements outstanding | $ 144.6 |
Guarantees, Indemnities and 115
Guarantees, Indemnities and Warranties - Changes in Product Warranty Accrual (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Warranty accrual - January 1 | $ 19.8 | $ 23.5 |
Warranty expense | 7.2 | 7.4 |
Payments | (10) | (10.1) |
Foreign currency and other | 1.3 | (1) |
Warranty accrual - December 31 | $ 18.3 | $ 19.8 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loss (Income) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ (1.5) | $ 4.2 | $ 39.4 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | $ 2.4 | $ 2.9 | 5.7 |
Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax Matters Agreement Receivable, Discontinued Operations | 13.2 | ||
Recognition of Previously Unrecognized Tax Position [Member] | Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | (38.3) | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | (3.2) | ||
Tax Expense from Audit Adjustments [Member] | Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ (17.4) |
Acquisitions Acquisitions (Deta
Acquisitions Acquisitions (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Jan. 26, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 886.8 | $ 774.7 | $ 778.3 | |
Axtone Railway Components Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 9.4 | |||
Receivables | 11.5 | |||
Inventory | 13.6 | |||
Plant, property and equipment | 13.1 | |||
Goodwill | 83 | |||
Other intangible assets | 9.9 | |||
Other assets | 6 | |||
Accounts payable and accrued liabilities | (14.9) | |||
Postretirement liabilities | (4.2) | |||
Other liabilities | (4.3) | |||
Net assets acquired | $ 123.1 |
Acquisitions Acquisitions Textu
Acquisitions Acquisitions Textuals (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 26, 2017 | Oct. 05, 2015 | Mar. 31, 2015 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 886.8 | $ 774.7 | $ 778.3 | |||
Axtone Railway Components Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | Jan. 26, 2017 | |||||
Business Acquisition, Name of Acquired Entity | Axtone Railway Components (Axtone) | |||||
Payments to Acquire Businesses, Gross | $ 123.1 | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 123.1 | |||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 72 | |||||
Goodwill | $ 83 | |||||
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 Advanced Materials LLC (Wolverine) | |||||
Payments to Acquire Businesses, Gross | 307 | |||||
Goodwill | $ 164.2 | |||||
Hartzell Aerospace Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Effective Date of Acquisition | Mar. 31, 2015 | |||||
Business Acquisition, Name of Acquired Entity | Environmental Control Systems (f/k/a Hartzell Aerospace) | |||||
Payments to Acquire Businesses, Gross | $ 52.9 | |||||
Goodwill | $ 13.7 |