Document and Entity Information
Document and Entity Information - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2018 | Oct. 30, 2018 | |
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ITT | |
Entity Registrant Name | ITT INC. | |
Entity Central Index Key | 216,228 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 87.6 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Income Statement [Abstract] | ||||||
Revenue | $ 680.6 | $ 645 | $ 2,066.7 | $ 1,901.7 | ||
Costs of revenue | 454.1 | 441.2 | 1,390 | 1,289.8 | ||
Gross profit | 226.5 | 203.8 | 676.7 | 611.9 | ||
General and administrative expenses | 68 | 70.1 | 196.6 | 200.4 | ||
Sales and marketing expenses | 40.8 | 41.3 | 127.7 | 128.2 | ||
Research and development expenses | 24.2 | 23 | 74.7 | 68 | ||
Gain on sale of long-lived assets | (40) | (0.9) | (40.5) | (0.9) | ||
Asbestos-related benefit, net | (4.3) | (62.8) | (10.5) | (33) | ||
Operating income | 137.8 | 133.1 | [1] | 328.7 | 249.2 | [1] |
Interest and non-operating expenses, net | 0.7 | 5.5 | 4 | 8.2 | ||
Income from continuing operations before income tax expense | 137.1 | 127.6 | 324.7 | 241 | ||
Income tax expense | 25.9 | 40.6 | 42.4 | 60.3 | ||
Income from continuing operations | 111.2 | 87 | 282.3 | 180.7 | ||
Loss from discontinued operations, net of tax | (0.1) | (0.1) | 0 | (0.3) | ||
Net income | 111.1 | 86.9 | 282.3 | 180.4 | ||
Less: Income (loss) attributable to noncontrolling interests | 0.2 | 0 | 0.5 | (0.3) | ||
Net income attributable to ITT Inc. | 110.9 | 86.9 | 281.8 | 180.7 | ||
Amounts attributable to ITT Inc.: | ||||||
Income from continuing operations, net of tax | 111 | 87 | 281.8 | 181 | ||
Loss from discontinued operations, net of tax | (0.1) | (0.1) | 0 | (0.3) | ||
Net income attributable to ITT Inc. | $ 110.9 | $ 86.9 | $ 281.8 | $ 180.7 | ||
Basic: | ||||||
Continuing operations | $ 1.27 | $ 0.99 | $ 3.21 | $ 2.05 | ||
Discontinued operations | 0 | 0 | 0 | 0 | ||
Net income | 1.27 | 0.99 | 3.21 | 2.05 | ||
Diluted: | ||||||
Continuing operations | 1.25 | 0.98 | 3.18 | 2.03 | ||
Discontinued operations | 0 | 0 | 0 | 0 | ||
Net income | $ 1.25 | $ 0.98 | $ 3.18 | $ 2.03 | ||
Weighted average common shares – basic | 87.6 | 88 | 87.7 | 88.3 | ||
Weighted average common shares – diluted | 88.7 | 88.7 | 88.7 | 89 | ||
Cash dividends declared per common share | $ 0.134 | $ 0.128 | $ 0.402 | $ 0.384 | ||
[1] | (a) Operating income and operating margin for the three and nine months ended September 30, 2017 has been restated to reflect the adoption of ASU 2017-07. Refer to Note 2 , Recent Accounting Pronouncements |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Tax benefit on income from discontinued operations | $ 0 | $ 0 | $ 0 | $ 0.2 |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 111.1 | $ 86.9 | $ 282.3 | $ 180.4 |
Other comprehensive (loss) income: | ||||
Net foreign currency translation adjustment | (5) | 22.7 | (25.6) | 84.4 |
Net change in postretirement benefit plans, net of tax impacts of $1.2, $2.1, $2.0 and $3.0, respectively | 3.9 | 3.6 | 6.1 | 5.9 |
Other comprehensive (loss) income | (1.1) | 26.3 | (19.5) | 90.3 |
Comprehensive income | 110 | 113.2 | 262.8 | 270.7 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0.2 | 0 | 0.5 | (0.3) |
Comprehensive income attributable to ITT Inc. | 109.8 | 113.2 | 262.3 | 271 |
Reclassification adjustments (see Note 15): | ||||
Amortization of prior service benefit, net of tax expense of $(0.3), $(0.3), $(0.8) and $(1.3), respectively | (0.8) | (0.9) | (2.5) | (2.3) |
Amortization of net actuarial loss, net of tax benefits of $0.6, $1.1, $1.9 and $3.0, respectively | 1.8 | 2.1 | 5.7 | 5.8 |
Loss from plan settlement or curtailment, net of tax benefit of $0.3, $1.3, $0.3 and $1.3, respectively | (1.1) | (2.4) | (1.1) | (2.4) |
Net actuarial gain, net of tax expense of $0.6, $0.0, $0.6 and $0.0, respectively | 1.8 | 0 | 1.8 | 0 |
Net change in postretirement benefit plans, net of tax impacts of $1.2, $2.1, $2.0 and $3.0, respectively | $ 3.9 | $ 3.6 | $ 6.1 | $ 5.9 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (Parentheticals) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net change in postretirement benefit plans, Tax Benefits | $ 1.2 | $ 2.1 | $ 2 | $ 3 |
Amortization of prior service costs, Tax (Expense) Benefit | (0.3) | (0.3) | (0.8) | (1.3) |
Amortization of net actuarial loss, Tax Benefits | 0.6 | 1.1 | 1.9 | 3 |
Loss from plan settlement or curtailment, Tax Benefit | 0.3 | 1.3 | 0.3 | 1.3 |
Unrealized change in net actuarial gain, Tax Expense | $ 0.6 | $ 0 | $ 0.6 | $ 0 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | |
Current assets: | |||
Cash and cash equivalents | $ 525.8 | $ 389.8 | |
Receivables, net | 562.9 | 629.6 | |
Inventories, net | 391.4 | 311.9 | |
Total current assets | 151.8 | 147.4 | |
Total current assets | 1,631.9 | 1,478.7 | |
Plant, property and equipment, net | 500.6 | 521.7 | |
Goodwill | 879.5 | 886.8 | |
Other intangible assets, net | 141 | 156.2 | |
Asbestos-related assets | 322.3 | 304 | |
Deferred income taxes | 163.6 | 149.9 | |
Other non-current assets | 205.8 | 202.9 | |
Total non-current assets | 2,212.8 | 2,221.5 | |
Total assets | 3,844.7 | 3,700.2 | [1] |
Current liabilities: | |||
Short-term loans and current maturities of long-term debt | 146.3 | 163.6 | |
Accounts payable | 334.5 | 351.4 | |
Accrued liabilities | 416.9 | 384.4 | |
Total current liabilities | 897.7 | 899.4 | |
Asbestos-related liabilities | 771.8 | 800.1 | |
Postretirement benefits | 221.9 | 227.3 | |
Other non-current liabilities | 165.5 | 175.6 | |
Total non-current liabilities | 1,159.2 | 1,203 | |
Total liabilities | 2,056.9 | 2,102.4 | |
Shareholders’ equity: | |||
Issued and outstanding – 87.6 shares and 88.2 shares, respectively | 87.6 | 88.2 | |
Retained earnings | 2,065.7 | 1,856.1 | |
Total accumulated other comprehensive loss | (367.7) | (348.2) | |
Total ITT Inc. shareholders’ equity | 1,785.6 | 1,596.1 | |
Noncontrolling interests | 2.2 | 1.7 | |
Total shareholders’ equity | 1,787.8 | 1,597.8 | |
Total liabilities and shareholders’ equity | $ 3,844.7 | $ 3,700.2 | |
[1] | (b) Amounts reflect balances as of December 31, 2017 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 250 | 250 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares issued | 87.6 | 88.2 |
Common stock, shares outstanding | 87.6 | 88.2 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Operating Activities | ||
Net income | $ 282.3 | $ 180.4 |
Less: Loss from discontinued operations | 0 | (0.3) |
Less: Income (loss) attributable to noncontrolling interests | 0.5 | (0.3) |
Income from continuing operations attributable to ITT Inc. | 281.8 | 181 |
Adjustments to income from continuing operations: | ||
Depreciation and amortization | 82.5 | 77.6 |
Equity-based compensation | 16.9 | 12.5 |
Gain on sale of long-lived assets | (40.5) | (0.9) |
Asbestos-related benefit, net | (10.5) | (33) |
Asbestos-related payments, net | (42.3) | (39.5) |
Changes in assets and liabilities: | ||
Change in receivables | (23.5) | (47.2) |
Change in inventories | (22.2) | (4.2) |
Change in accounts payable | (10.3) | 3.4 |
Change in accrued expenses | (7.3) | 18.3 |
Change in accrued and deferred income taxes | 6 | 19.8 |
Other, net | 16 | (9.5) |
Net Cash – Operating activities | 246.6 | 178.3 |
Investing Activities | ||
Capital expenditures | (63.8) | (79.2) |
Proceeds from sale of long-lived assets | 42.7 | 3.4 |
Acquisitions, net of cash acquired | 0 | (113.7) |
Other, net | 0 | (0.2) |
Net Cash – Investing activities | (21.1) | (189.3) |
Financing Activities | ||
Commercial paper, net repayments | (16) | 17.5 |
Short-term revolving loans, borrowings | 246.5 | 77.3 |
Short-term revolving loans, repayments | 233.8 | 123.9 |
Long-term debt, issued | 3.2 | 3.9 |
Long-term debt, repayments | (2.1) | (1.1) |
Repurchase of common stock | (55.8) | (32.9) |
Proceeds from issuance of common stock | 5.8 | 6.7 |
Dividends paid | (23.9) | (22.8) |
Other, net | (0.1) | 0 |
Net Cash – Financing activities | (76.2) | (75.3) |
Exchange rate effects on cash and cash equivalents | (11.4) | 22.4 |
Net Cash – Operating activities of discontinued operations | (1.9) | (1.2) |
Net change in cash and cash equivalents | 136 | (65.1) |
Cash and cash equivalents – beginning of year (includes restricted cash of $1.2 and $1.2, respectively) | 391 | 461.9 |
Cash and cash equivalents – end of period (includes restricted cash of $1.2 and $1.2, respectively) | 527 | 396.8 |
Cash paid during the year for: | ||
Interest | 1 | 2.8 |
Income taxes, net of refunds received | $ 31 | $ 39.6 |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Restricted Cash | $ 1.2 | $ 1.2 | $ 1.2 | $ 1.2 |
CONSOLIDATED CONDENSED STATEM_7
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREDHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Total shareholders' equity, beginning balance at Dec. 31, 2016 | $ 1,428.4 | $ 88.4 | $ 1,789.2 | $ 2 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2016 | $ (145.2) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2016 | (306) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.5 | ||||
Cumulative adjustment for accounting change (See Note 2) | 0.5 | ||||
Net income attributable to ITT Inc. | 180.7 | 180.7 | |||
Dividends declared | (34.1) | ||||
Activity from stock incentive plans | 20.2 | ||||
Share repurchases | (0.9) | (32) | |||
Net change in postretirement benefit plans | 5.9 | 5.9 | |||
Net cumulative translation adjustment | 84.4 | ||||
Income (loss) attributable to noncontrolling interests | 0.3 | (0.3) | |||
Other | (0.1) | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2017 | (139.3) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2017 | (221.6) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (0.4) | ||||
Net change in retained earnings | 135.3 | ||||
Net change in accumulated other comprehensive loss | 90.3 | ||||
Net change in noncontrolling interests | (0.4) | ||||
Total shareholders' equity, ending balance at Sep. 30, 2017 | 1,653.2 | 88 | 1,924.5 | (360.9) | 1.6 |
Total shareholders' equity, beginning balance at Jun. 30, 2017 | 1,546 | 88 | 1,843.6 | 1.6 | |
Postretirement benefit plans, beginning balance at Jun. 30, 2017 | (142.9) | ||||
Cumulative translation adjustment, beginning balance at Jun. 30, 2017 | (244.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0 | ||||
Cumulative adjustment for accounting change (See Note 2) | 0 | ||||
Net income attributable to ITT Inc. | 86.9 | 86.9 | |||
Dividends declared | (11.3) | ||||
Activity from stock incentive plans | 5.4 | ||||
Share repurchases | 0 | (0.1) | |||
Net change in postretirement benefit plans | 3.6 | 3.6 | |||
Net cumulative translation adjustment | 22.7 | ||||
Income (loss) attributable to noncontrolling interests | 0 | 0 | |||
Other | 0 | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2017 | (139.3) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2017 | (221.6) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | 0 | ||||
Net change in retained earnings | 80.9 | ||||
Net change in accumulated other comprehensive loss | 26.3 | ||||
Net change in noncontrolling interests | 0 | ||||
Total shareholders' equity, ending balance at Sep. 30, 2017 | 1,653.2 | 88 | 1,924.5 | (360.9) | 1.6 |
Total shareholders' equity, beginning balance at Dec. 31, 2017 | 1,597.8 | 88.2 | 1,856.1 | 1.7 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2017 | (137.6) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2017 | (210.6) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.5 | ||||
Cumulative adjustment for accounting change (See Note 2) | (4.1) | ||||
Net income attributable to ITT Inc. | 281.8 | 281.8 | |||
Dividends declared | (35.6) | ||||
Activity from stock incentive plans | 22.2 | ||||
Share repurchases | (1.1) | (54.7) | |||
Net change in postretirement benefit plans | 6.1 | 6.1 | |||
Net cumulative translation adjustment | (25.6) | ||||
Income (loss) attributable to noncontrolling interests | (0.5) | 0.5 | |||
Other | 0 | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2018 | (131.5) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2018 | (236.2) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (0.6) | ||||
Net change in retained earnings | 209.6 | ||||
Net change in accumulated other comprehensive loss | (19.5) | ||||
Net change in noncontrolling interests | 0.5 | ||||
Total shareholders' equity, ending balance at Sep. 30, 2018 | 1,787.8 | 87.6 | 2,065.7 | (367.7) | 2.2 |
Total shareholders' equity, beginning balance at Jun. 30, 2018 | 1,682.3 | 87.6 | 1,959.3 | 2 | |
Postretirement benefit plans, beginning balance at Jun. 30, 2018 | (135.4) | ||||
Cumulative translation adjustment, beginning balance at Jun. 30, 2018 | (231.2) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0 | ||||
Cumulative adjustment for accounting change (See Note 2) | 0 | ||||
Net income attributable to ITT Inc. | 110.9 | 110.9 | |||
Dividends declared | (11.9) | ||||
Activity from stock incentive plans | 7.8 | ||||
Share repurchases | 0 | (0.4) | |||
Net change in postretirement benefit plans | 3.9 | 3.9 | |||
Net cumulative translation adjustment | (5) | ||||
Income (loss) attributable to noncontrolling interests | (0.2) | 0.2 | |||
Other | 0 | ||||
Postretirement benefit plans, ending balance at Sep. 30, 2018 | (131.5) | ||||
Cumulative translation adjustment, ending balance at Sep. 30, 2018 | (236.2) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | 0 | ||||
Net change in retained earnings | 106.4 | ||||
Net change in accumulated other comprehensive loss | (1.1) | ||||
Net change in noncontrolling interests | 0.2 | ||||
Total shareholders' equity, ending balance at Sep. 30, 2018 | $ 1,787.8 | $ 87.6 | $ 2,065.7 | $ (367.7) | $ 2.2 |
DESCRIPTION OF BUSINESS, BASIS
DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND UPDATES TO SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND UPDATES TO 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 pumping and complementary equipment; 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 . Basis of Presentation The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in ITT’s Annual Report on Form 10-K for the year ended December 31, 2017 (the 2017 Annual Report) in preparing these unaudited financial statements, other than those described below. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2017 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. ITT’s quarterly financial periods end on the Saturday that is closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31st. For ease of presentation, the quarterly financial statements included herein are described as ending on the last day of the calendar quarter. Certain prior year amounts have been reclassified or restated to conform to the current year presentation. For further information, refer to Note 2 , Recent Accounting Pronouncements . Updates to Summary of Significant Accounting Policies Revenue Recognition Revenue is derived from the sale of products and services to customers. We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For product sales, we consider practical and contractual limitations in determining whether there is an alternative use for the product. For example, long-term design and build contracts are typically highly customized to a customer’s specifications. For contracts with no alternative use and an enforceable right to payment for work performed to date, including a reasonable profit if the contract were terminated at the customer’s convenience, we recognize revenue over time. All other product sales are recognized at a point in time. For contracts recognized over time, we use the cost-to-total cost method or the units of delivery method, depending on the nature of the contract, including length of production time. For contracts recognized at a point in time, we recognize revenue when control passes to the customer, which is generally based on shipping terms that address when title and risk and rewards pass to the customer. However, we also consider certain customer acceptance provisions as certain contracts with customers include installation, testing, certification or other acceptance provisions. In instances where contractual terms include a provision for customer acceptance, we consider whether we have previously demonstrated that the product meets objective criteria specified by either the seller or customer in assessing whether control has passed to the customer. For service contracts, we recognize revenue as the services are rendered if the customer is benefiting from the service as it is performed, or otherwise upon completion of the service. Separately priced extended warranties are recognized as a separate performance obligation over the warranty period. The transaction price in our contracts consists of fixed consideration and the impact of variable consideration including returns, rebates and allowances and penalties. Variable consideration is generally estimated using a probability-weighted approach based on historical experience, known trends and current factors including market conditions and status of negotiations. When there is more than one performance obligation, the transaction price is allocated to the performance obligations based on the relative estimated standalone selling prices. If not sold separately, estimated standalone selling prices are determined considering various factors including market and pricing trends, geography, product customization and profit objectives. Revenue is recognized when the appropriate revenue recognition criteria for the individual performance obligations have been satisfied. 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 activities are accounted for as activities to fulfill a promise to transfer a product to a customer. As such, shipping and handling activities are not evaluated as a separate performance qualification. For most contracts, payment is due from the customer within 30 to 90 days after the product is delivered or the service has been performed. For design and build contracts, we generally collect progress payments from the customer throughout the term of the contract, resulting in contract assets or liabilities depending on the timing of the payments. Contract assets consist of unbilled amounts when revenue recognized exceeds customer billings. Contract liabilities consist of advance payments and billings in excess of revenue recognized. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. Accounting Pronouncements Recently Adopted In May 2014, the FASB issued ASU 2014-09 amending the existing accounting standards for revenue recognition. The new standard was effective for ITT as of January 1, 2018. Most revenue streams are recorded consistently under both the new standard and the previous standard. However, the timing of revenue recognition of certain design and build contracts in our Industrial Process segment, recognized using the percentage of completion method under the previous standard, is now dependent on certain terms within the contract and therefore will vary based on the new guidance. ITT adopted this guidance using a modified retrospective approach. As of the date of adoption, we have recognized approximately $49 of revenue and $5 of operating income on open contracts in our Industrial Process segment using the percentage of completion method that under the new guidance are recognized at a point in time, resulting in a cumulative adjustment to the opening balance in retained earnings of $4 , net of tax. The comparative information has not been restated and continues to be reported under the accounting guidance in effect in those periods. Additionally, the new guidance resulted in a change in balance sheet presentation. Certain progress payments, previously presented as a reduction of inventory, are now presented within accrued liabilities. Unbilled receivables, previously presented within receivables, net, are now presented within other current or non-current assets. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet related to the adoption of ASU 2014-09 is as follows: Balance as of December 31, 2017 Cumulative Effect of Adjustments Balance as of January 1, 2018 Assets: Receivables, net $ 629.6 $ (71.9 ) $ 557.7 Inventories, net 311.9 66.3 378.2 Other current assets 147.4 43.2 190.6 Deferred income taxes 149.9 1.0 150.9 Liabilities: Accrued liabilities 384.4 43.7 428.1 Other non-current liabilities 175.6 (1.0 ) 174.6 Equity: Retained earnings 1,856.1 (4.1 ) 1,852.0 The impacts to our Consolidated Statements of Operations for the three and nine months ended September 30, 2018 , and our Consolidated Balance Sheet as of September 30, 2018 had we not adopted ASU 2014-09 are as follows: Three Months Nine Months As of or for the Periods Ended September 30, 2018 As Reported Amounts under previous standard Effect of Change As Reported Amounts under previous standard Effect of Change Statement of Operations Revenue $ 680.6 $ 683.9 $ 3.3 $ 2,066.7 $ 2,078.2 $ 11.5 Costs of revenue 454.1 456.4 2.3 1,390.0 1,399.6 9.6 Income tax expense 25.9 25.9 — 42.4 42.6 0.2 Net income 111.1 112.1 1.0 282.3 284.0 1.7 Balance Sheets Assets: Receivables, net 562.9 613.5 50.6 Inventories, net 391.4 320.2 (71.2 ) Other current assets 151.8 130.5 (21.3 ) Deferred income taxes 163.6 162.4 (1.2 ) Liabilities: Accrued liabilities 416.9 367.0 (49.9 ) Other non-current liabilities 165.5 166.5 1.0 Equity: Retained earnings 2,065.7 2,071.5 5.8 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 are 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 are no longer classified as an operating expense. In addition, only the service cost component will be eligible for capitalization on the balance sheet. The ASU 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. ITT adopted the ASU beginning in the first quarter of 2018. Service costs eligible for capitalization on the balance sheet in 2018 are considered immaterial. As a result of the adoption, our Consolidated Statement of Operations for the three and nine months ended September 30, 2017 was restated as follows: For the Three Months Ended September 30, 2017 Previously Reported Effect of Change Restated Costs of revenue $ 441.9 $ (0.7 ) $ 441.2 General and administrative expenses (a) 74.6 (4.5 ) 70.1 Research and development expenses 23.1 (0.1 ) 23.0 Operating income 127.8 5.3 133.1 Interest and non-operating expenses, net 0.2 5.3 5.5 For the Nine Months Ended September 30, 2017 Previously Reported Effect of Change Restated Costs of revenue $ 1,291.9 $ (2.1 ) $ 1,289.8 General and administrative expenses (a) 206.1 (5.7 ) 200.4 Sales and marketing expenses 128.3 (0.1 ) 128.2 Research and development expenses 68.2 (0.2 ) 68.0 Operating income 241.1 8.1 249.2 Interest and non-operating expenses, net 0.1 8.1 8.2 (a) Previously reported General and administrative expenses excludes $0.9 in both the three and nine months ended September 30, 2017 related to gains on the sale of long-lived assets which has been reclassed to conform with current year presentation. In November 2016, the FASB issued ASU 2016-18 which requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the Statement of Cash Flows. In addition, when cash and restricted cash are presented on separate lines on the Balance Sheet, an entity is required to reconcile the total cash, cash equivalents and restricted cash in the Statement of Cash Flows to the related line items in the Balance Sheet. The ASU requires a retrospective transition method and ITT adopted the ASU beginning in the first quarter of 2018. 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 resulting in a cumulative-effect adjustment of $1.0 to increase retained earnings. The increase to retained earnings was driven by previously unrecognized tax benefits due to net operating loss carryforwards of $2.1 , offset by a reduction in retained earnings of $1.1 , net of tax, due to a change in our accounting policy for the forfeiture of share-based compensation arrangements. For further information on our adoption of the new standard, refer to our 2017 Annual Report. Accounting Pronouncements Not Yet Adopted |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION 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 (a) Operating Margin For the Three Months Ended September 30 2018 2017 2018 2017 2018 2017 Industrial Process $ 205.0 $ 196.2 $ 23.7 $ 14.3 11.6 % 7.3 % Motion Technologies 310.3 300.1 58.5 49.2 18.9 % 16.4 % Connect & Control Technologies 166.0 149.4 26.0 18.0 15.7 % 12.0 % Total segment results 681.3 645.7 108.2 81.5 15.9 % 12.6 % Asbestos-related benefit, net — — 4.3 62.8 — — Gain on sale of long-lived assets — — 38.0 — — — Eliminations / Other corporate costs (0.7 ) (0.7 ) (12.7 ) (11.2 ) — — Total Eliminations / Corporate and Other costs (0.7 ) (0.7 ) 29.6 51.6 — — Total $ 680.6 $ 645.0 $ 137.8 $ 133.1 20.2 % 20.6 % Revenue Operating Income (a) Operating Margin For the Nine Months Ended September 30 2018 2017 2018 2017 2018 2017 Industrial Process $ 598.0 $ 574.6 $ 64.0 $ 37.7 10.7 % 6.6 % Motion Technologies 982.8 877.5 175.9 156.3 17.9 % 17.8 % Connect & Control Technologies 488.0 452.3 76.3 48.9 15.6 % 10.8 % Total segment results 2,068.8 1,904.4 316.2 242.9 15.3 % 12.8 % Asbestos-related benefit, net — — 10.5 33.0 — — Gain on sale of long-lived assets — — 38.0 — — — Eliminations / Other corporate costs (2.1 ) (2.7 ) (36.0 ) (26.7 ) — — Total Eliminations / Corporate and Other costs (2.1 ) (2.7 ) 12.5 6.3 — — Total $ 2,066.7 $ 1,901.7 $ 328.7 $ 249.2 15.9 % 13.1 % (a) Operating income and operating margin for the three and nine months ended September 30, 2017 has been restated to reflect the adoption of ASU 2017-07. Refer to Note 2 , Recent Accounting Pronouncements for further information. Total Assets Capital Expenditures Depreciation & Amortization For the Nine Months Ended September 30 2018 2017 (b) 2018 2017 2018 2017 Industrial Process $ 997.7 $ 1,025.7 $ 3.5 $ 15.8 $ 20.5 $ 20.7 Motion Technologies 1,150.9 1,140.4 54.1 55.1 42.8 35.1 Connect & Control Technologies 707.1 694.8 6.0 7.9 16.2 17.3 Corporate and Other 989.0 839.3 0.2 0.4 3.0 4.5 Total $ 3,844.7 $ 3,700.2 $ 63.8 $ 79.2 $ 82.5 $ 77.6 (b) Amounts reflect balances as of December 31, 2017 |
REVENUE REVENUE
REVENUE REVENUE | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE The following table represents our revenue disaggregated by product category for the three and nine months ended September 30, 2018 . For the Three Months Ended September 30, 2018 Industrial Process Motion Technologies Connect & Control Technologies Eliminations Total Industrial pumps $ 145.6 $ — $ — $ — $ 145.6 Oil & gas pumps and components 59.4 — 12.5 — 71.9 Vehicle components — 270.0 — — 270.0 Aerospace & defense components — 1.3 92.9 — 94.2 Rail components — 35.4 — — 35.4 Industrial components and other — 3.6 60.6 (0.7 ) 63.5 Total $ 205.0 $ 310.3 $ 166.0 $ (0.7 ) $ 680.6 For the Nine Months Ended September 30, 2018 Industrial Process Motion Technologies Connect & Control Technologies Eliminations Total Industrial pumps $ 440.3 $ — $ — $ — $ 440.3 Oil & gas pumps and components 157.7 — 31.6 — 189.3 Vehicle components — 854.0 — (0.1 ) 853.9 Aerospace & defense components — 5.8 276.6 — 282.4 Rail components — 112.5 — — 112.5 Industrial components and other — 10.5 179.8 (2.0 ) 188.3 Total $ 598.0 $ 982.8 $ 488.0 $ (2.1 ) $ 2,066.7 Revenue recognized related to our Industrial Process segment primarily consists of pumps, valves and plant optimization systems and services which serve the general industrial, oil and gas, chemical and petrochemical, pharmaceutical, mining, pulp and paper, food and beverage, and power generation markets. Many of Industrial Process’s products are highly engineered and customized to our customer needs and therefore do not have an alternative use. For these longer term design and build projects, if the contract states that we also have an enforceable right to payment, we recognize revenue over time using the cost-to-total-cost method as we satisfy the performance obligations identified in the contract. If no right to payment exists, revenue is recognized at a point in time, generally based on shipping terms. A majority of our design and build project contracts currently do not have a right to payment. For other pumps that do have an alternative use to us, revenue is recognized at a point in time. Revenue on service and repair contracts, representing approximately 3% of consolidated ITT revenue, is recognized after services have been agreed to by the customer and rendered or over the service period. Our Motion Technologies segment manufactures brake pads, shims, shock absorbers, and damping and sealing technologies primarily for the transportation industry. Our Connect & Control Technologies segment manufactures a range of highly engineered connectors and specialized control components for critical applications. In both of these segments, most products have an alternative use. Therefore, revenue is recognized at a point in time when control passes to the customer. In certain circumstances, we have concluded we do not have an alternative use for the component product. In these cases, due to the short-term nature of the production process we use a units-of-delivery method of revenue recognition which faithfully depicts the transfer of control to the customer. Contract Assets and Liabilities Contract assets consist of unbilled amounts where revenue recognized exceeds customer billings. Contract liabilities consist of advance payments and billings in excess of revenue recognized. The following table represents our net contract assets and liabilities as of September 30, 2018 . September 30, 2018 January 1, 2018 Change Current contract assets $ 21.3 $ 43.2 (50.7 )% Noncurrent contract assets 0.7 — 100.0 % Current contract liabilities (63.0 ) (61.7 ) 2.1 % Net contract liabilities $ (41.0 ) $ (18.5 ) 121.6 % The increase in our net contract liability of $22.5 , or 121.6% , during the nine months ended September 30, 2018 was primarily due to higher customer billings. During the three and nine months ended September 30, 2018 , we recognized revenue of $12.4 and $58.5 , respectively, related to contract liabilities at January 1, 2018. For contracts greater than one year, the aggregate amount of the transaction price allocated to unsatisfied or partially satisfied performance obligations as of September 30, 2018 was $38.8 . Of this amount, we expect to recognize approximately $8 to $12 of revenue during 2018, and the remainder in 2019. As of September 30, 2018 , deferred contract costs were $7.0 , primarily related to pre-contract costs. During the three and nine months ended September 30, 2018 , we amortized $0.2 and $0.6 |
RESTRUCTURING ACTIONS RESTRUCTU
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING ACTIONS | RESTRUCTURING ACTIONS The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Statements of Operations for the three and nine months ended September 30, 2018 and 2017 . We have initiated various restructuring activities throughout our businesses during the past two years, however there were no restructuring activities considered to be individually significant. Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Severance costs $ 0.8 $ 4.6 $ 2.4 $ 7.3 Asset write-offs — 0.1 — 0.1 Other restructuring costs 0.1 — 0.6 1.6 Total restructuring costs $ 0.9 $ 4.7 $ 3.0 $ 9.0 By segment: Industrial Process $ — $ 3.2 $ — $ 4.9 Motion Technologies 0.4 0.5 1.7 1.3 Connect & Control Technologies 0.5 1.6 1.3 2.8 Corporate and Other — (0.6 ) — — The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the nine months ended September 30, 2018 and 2017 . For the Periods Ended September 30 2018 2017 Restructuring accruals - beginning balance $ 8.9 $ 14.6 Restructuring costs 3.0 9.0 Cash payments (5.9 ) (13.8 ) Asset write-offs — (0.1 ) Foreign exchange translation and other 0.8 1.4 Restructuring accrual - ending balance $ 6.8 $ 11.1 By accrual type: Severance accrual $ 6.0 $ 9.9 Facility carrying and other costs accrual 0.8 1.2 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three months ended September 30, 2018 and 2017 , the Company recognized income tax expense of $25.9 and $40.6 and had an effective tax rate of 18.9% and 31.8% , respectively. For the nine months ended September 30, 2018 and 2017 , the Company recognized income tax expense of $42.4 and $60.3 and had an effective tax rate of 13.1% and 25.0% , respectively. The lower effective tax rate in 2018 is primarily due to tax benefits of $23.5 from the reversal of valuation allowances on German and U.K. deferred tax assets, $3.1 from a reduction to the provisional one-time tax charge associated with the 2017 U.S. tax reform, and the reduction to the U.S. corporate tax rate from 35% to 21% in 2018. Our effective tax rate in 2018 includes the impact of the Tax Cuts and Jobs Act of 2017 (the Tax Act) that was passed by Congress on December 20, 2017 and signed into law by the President on December 22, 2017. The Tax Act significantly changed the U.S. corporate income tax rules, most of which were effective January 1, 2018. On December 22, 2017, the SEC staff 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 and therefore records provisional amounts under the Tax Act. The ultimate impact of the Tax Act 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 currently 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 2017 financial statements. The Company has updated some of these provisional computations to account for further guidance from the United States Treasury Department. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date. The Tax Act imposed a one-time tax on accumulated earnings of foreign subsidiaries as of December 31, 2017. In its 2017 financial statements, the Company recognized the provisional tax impacts resulting from the Tax Act. The Company has updated the provisional one-time tax amount to $54.9 as compared to $58.0 reported in December 31, 2017 financial statements. The Company reported the one-time tax liability in its 2017 tax return that was filed shortly after the third quarter of 2018. However, the amounts reported in the tax return are still considered provisional as further guidance is expected from the Internal Revenue Service. The Company intends to distribute most earnings of its foreign subsidiaries 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 that it intends to permanently reinvest outside the U.S. The Company anticipates that accumulated foreign earnings of $975 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. and foreign taxes. The Tax Act limits the deductibility of compensation for certain senior officers. The Company has determined that certain deferred tax assets associated with officer compensation may not be deductible. The Company has therefore written off a provisional amount of $1.7 of deferred tax assets relating to such compensation. 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 additional 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. 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, Czech Republic, Germany, Hong Kong, India, Italy, Mexico, the U.S. and Venezuela. The estimated tax liability calculation for unrecognized tax benefits considers uncertainties in the application of complex tax laws and regulations in various tax jurisdictions. Due to the complexity of some uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the unrecognized tax benefit. Over the next 12 months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could change by approximately $10 due to changes in audit status, expiration of statutes of limitations and other events. In addition, the settlement of any future examinations relating to the 2011 and prior tax years could result in changes in amounts attributable to the Company under its Tax Matters Agreement with Exelis Inc. and Xylem Inc. relating to the Company’s 2011 spin-off of those businesses. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE DATA The following table provides a reconciliation of the data used in the calculation of basic and diluted earnings per share from continuing operations attributable to ITT for the three and nine months ended September 30, 2018 and 2017 . Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Basic weighted average common shares outstanding 87.6 88.0 87.7 88.3 Add: Dilutive impact of outstanding equity awards 1.1 0.7 1.0 0.7 Diluted weighted average common shares outstanding 88.7 88.7 88.7 89.0 There were no anti-dilutive shares underlying stock options excluded from the computation of diluted earnings per share for the three and nine months ended September 30, 2018 . During the three and nine months ended September 30, 2017 there were 0.3 and 0.4 anti-dilutive shares underlying stock options excluded from the computation of diluted earnings per share with a weighted average exercise price per share of $42.40 and $42.41 , respectively. Anti-dilutive shares underlying stock options for the three and nine months ended September 30, 2017 will expire between 2024 and 2025 . During the three and nine months ended September 30, 2017 , 0.2 |
RECEIVABLES, NET
RECEIVABLES, NET | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
RECEIVABLES, NET | RECEIVABLES, NET September 30, December 31, Trade accounts receivable (See Note 2) $ 557.9 $ 601.4 Notes receivable 5.7 3.9 Other 17.5 40.4 Receivables, gross 581.1 645.7 Less: Allowance for doubtful accounts (18.2 ) (16.1 ) Receivables, net $ 562.9 $ 629.6 |
INVENTORIES, NET
INVENTORIES, NET | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORIES, NET | INVENTORIES, NET September 30, December 31, Finished goods $ 63.9 $ 55.9 Work in process 72.4 54.8 Raw materials 214.9 184.4 Inventoried costs related to long-term contracts 40.2 38.1 Total inventory before progress payments 391.4 333.2 Less: Progress payments (see Note 2) — (21.3 ) Inventories, net $ 391.4 $ 311.9 |
OTHER CURRENT AND NON-CURRENT A
OTHER CURRENT AND NON-CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER CURRENT AND NON-CURRENT ASSETS | OTHER CURRENT AND NON-CURRENT ASSETS September 30, December 31, Asbestos-related assets $ 67.1 $ 64.7 Advance payments and other prepaid expenses 43.4 50.9 Short-term contract asset (see Note 2) 21.3 — Prepaid income taxes 18.8 30.3 Other 1.2 1.5 Other current assets $ 151.8 $ 147.4 Other employee benefit-related assets $ 118.8 $ 111.3 Capitalized software costs 35.2 41.9 Environmental-related assets 23.3 24.5 Equity method investments 8.0 6.7 Other 20.5 18.5 Other non-current assets $ 205.8 $ 202.9 |
PLANT, PROPERTY AND EQUIPMENT,
PLANT, PROPERTY AND EQUIPMENT, NET | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PLANT, PROPERTY AND EQUIPMENT, NET | PLANT, PROPERTY AND EQUIPMENT, NET September 30, December 31, Land and improvements $ 27.8 $ 28.7 Machinery and equipment 1,049.7 1,039.9 Buildings and improvements 266.0 262.5 Furniture, fixtures and office equipment 73.0 74.5 Construction work in progress 48.2 58.4 Other 10.5 10.9 Plant, property and equipment, gross 1,475.2 1,474.9 Less: Accumulated depreciation (974.6 ) (953.2 ) Plant, property and equipment, net $ 500.6 $ 521.7 Depreciation expense of $20.7 and $19.7 , and $62.4 and $57.2 was recognized in the three and nine months ended September 30, 2018 and 2017 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following table provides a rollforward of the carrying amount of goodwill for the nine months ended September 30, 2018 by segment. Industrial Process Motion Technologies Connect & Control Technologies Total Goodwill - December 31, 2017 $ 324.5 $ 295.6 $ 266.7 $ 886.8 Adjustments to purchase price allocations — 3.3 — 3.3 Foreign exchange translation (6.5 ) (3.2 ) (0.9 ) (10.6 ) Goodwill - September 30, 2018 $ 318.0 $ 295.7 $ 265.8 $ 879.5 Goodwill adjustments to purchase price allocations are related to our acquisition of Axtone Railway Components (Axtone) in the first quarter of 2017. The acquired goodwill, representing the excess of the purchase price over the net assets acquired, has been adjusted to reflect the final fair value of the net assets acquired. Refer to Note 19 , Acquisitions , for additional information. Other Intangible Assets, Net Information regarding our other intangible assets is as follows: September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 164.5 $ (83.2 ) $ 81.3 $ 166.2 $ (74.4 ) $ 91.8 Proprietary technology 53.8 (24.7 ) 29.1 54.4 (21.8 ) 32.6 Patents and other 12.6 (9.3 ) 3.3 13.5 (9.2 ) 4.3 Finite-lived intangible total 230.9 (117.2 ) 113.7 234.1 (105.4 ) 128.7 Indefinite-lived intangibles 27.3 — 27.3 27.5 — 27.5 Other intangible assets $ 258.2 $ (117.2 ) $ 141.0 $ 261.6 $ (105.4 ) $ 156.2 Amortization expense related to finite-lived intangible assets was $4.4 and $5.2 , and $13.3 and $14.4 for the three and nine months ended September 30, 2018 and 2017 |
ACCRUED AND OTHER CURRENT LIABI
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES September 30, December 31, Compensation and other employee-related benefits $ 146.7 $ 147.2 Contract liabilities and other customer-related liabilities (see Note 2) 84.4 45.5 Asbestos-related liabilities 73.3 77.1 Accrued income taxes and other tax-related liabilities 39.5 36.1 Environmental liabilities and other legal matters 22.4 22.8 Accrued warranty costs 16.4 17.0 Other accrued liabilities 34.2 38.7 Accrued liabilities $ 416.9 $ 384.4 Environmental liabilities $ 54.5 $ 63.6 Compensation and other employee-related benefits 35.6 36.4 Deferred income taxes and other tax-related accruals 26.1 19.3 Other 49.3 56.3 Other non-current liabilities $ 165.5 $ 175.6 |
DEBT Debt (Notes)
DEBT Debt (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | DEBT September 30, December 31, Commercial paper $ 144.9 $ 162.4 Current maturities of long-term debt and capital leases 1.4 1.2 Short-term loans and current maturities of long-term debt 146.3 163.6 Long-term debt and capital leases 9.9 8.3 Total debt and capital leases $ 156.2 $ 171.9 Commercial Paper Commercial paper outstanding as of September 30, 2018 was issued entirely through the Company’s euro program and had an associated weighted average interest rate of (0.075)% . Commercial paper outstanding as of December 31, 2017 was issued entirely through the Company’s U.S. program and had an associated weighted average interest rate of 2.09% . The outstanding commercial paper for both periods had maturity terms less than one month from the date of issuance. Refer to the Liquidity |
POSTRETIREMENT BENEFIT PLANS
POSTRETIREMENT BENEFIT PLANS | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS The following table provides the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three and nine months ended September 30, 2018 and 2017 . 2018 2017 For the Three Months Ended September 30 Pension Other Benefits Total Pension Other Benefits Total Service cost $ 0.4 $ 0.2 $ 0.6 $ 0.8 $ 0.2 $ 1.0 Interest cost 3.0 1.0 4.0 3.0 1.1 4.1 Expected return on plan assets (a) (4.4 ) — (4.4 ) (3.9 ) (0.1 ) (4.0 ) Amortization of prior service cost (benefit) 0.2 (1.3 ) (1.1 ) 0.2 (1.4 ) (1.2 ) Amortization of net actuarial loss 1.5 0.9 2.4 2.1 1.1 3.2 Net periodic benefit cost 0.7 0.8 1.5 2.2 0.9 3.1 Loss from settlement or curtailment 1.4 — 1.4 3.7 — 3.7 Total net periodic benefit cost $ 2.1 $ 0.8 $ 2.9 $ 5.9 $ 0.9 $ 6.8 2018 2017 For the Nine Months Ended September 30 Pension Other Total Pension Other Total Service cost $ 1.2 $ 0.6 $ 1.8 $ 2.0 $ 0.6 $ 2.6 Interest cost 8.6 3.2 11.8 9.0 3.4 12.4 Expected return on plan assets (a) (11.2 ) (0.2 ) (11.4 ) (11.4 ) (0.3 ) (11.7 ) Amortization of prior service cost (benefit) 0.6 (3.9 ) (3.3 ) 0.7 (4.3 ) (3.6 ) Amortization of net actuarial loss 4.5 3.1 7.6 5.6 3.2 8.8 Net periodic benefit cost 3.7 2.8 6.5 5.9 2.6 8.5 Loss from settlement or curtailment 1.4 — 1.4 3.7 — 3.7 Total net periodic benefit cost $ 5.1 $ 2.8 $ 7.9 $ 9.6 $ 2.6 $ 12.2 (a) Plan administrative expenses of $0.7 and $2.3 for the three and nine months ended September 30, 2017 , respectively have been reclassified from the service cost component line to the expected return on plan assets component line to conform to the current year presentation. In the third quarter of 2018, we recorded a settlement loss of $1.4 related to retiree lump sum pension payments in our Industrial Process segment. In the third quarter of 2017 we recorded a curtailment loss of $3.7 related to a freeze of benefit accruals for certain current employees in our Industrial Process segment. We made contributions to our global postretirement plans of $9.7 and $14.3 during the nine months ended September 30, 2018 and 2017 , respectively, which included a discretionary contribution of $5 to our U.S. pension plan during 2017. We expect to make contributions of approximately $4 to $6 during the remainder of 2018 , principally related to our other postretirement employee benefit plans. Amortization from accumulated other comprehensive income into earnings related to prior service cost and net actuarial loss was $2.1 and $3.6 , and $4.3 and $5.9 , net of tax, during the three and nine months ended September 30, 2018 and 2017 |
LONG-TERM INCENTIVE EMPLOYEE CO
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | LONG-TERM INCENTIVE EMPLOYEE COMPENSATION Our long-term incentive plan (LTIP) costs are primarily recorded within general and administrative expenses. The following table provides the components of LTIP costs for the three and nine months ended September 30, 2018 and 2017 . Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Equity-based awards $ 6.7 $ 5.2 $ 16.9 $ 12.5 Liability-based awards 0.9 0.8 1.7 1.7 Total share-based compensation expense $ 7.6 $ 6.0 $ 18.6 $ 14.2 At September 30, 2018 , there was $20.2 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 2.1 years. Additionally, unrecognized compensation cost related to liability-based awards was $3.3 , which is expected to be recognized ratably over a weighted-average period of 1.9 years. Year-to-Date 2018 LTIP Activity The majority of our LTIP awards are granted during the first quarter of each year and vest on the completion of a three-year service period. During the nine months ended September 30, 2018 , we granted the following LTIP awards as provided in the table below: # of Awards Granted Weighted Average Grant Date Fair Value Per Share Restricted stock units (RSUs) 0.3 $ 53.26 Performance stock units (PSUs) 0.1 $ 57.81 During the nine months ended September 30, 2018 and 2017 , 0.2 and 0.3 non-qualified stock options were exercised resulting in proceeds of $5.8 and $6.7 , respectively. During both the nine months ended September 30, 2018 and 2017 , RSUs of 0.2 vested and were issued, respectively. During the nine months ended September 30, 2018 , PSUs of 0.1 that vested on December 31, 2017 were issued. There were no |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK On October 27, 2006, a three-year $1 billion share repurchase program was approved by the Board of Directors (the Share Repurchase Program). On December 16, 2008, the provisions of the Share Repurchase Program were modified by the Board of Directors to replace the original three-year term with an indefinite term. During the nine months ended September 30, 2018 and 2017 , we repurchased and retired 1.0 and 0.8 shares of common stock for $50.0 and $30.0 , respectively, under this program. To date, the Company has repurchased 22.1 shares for $909.4 under the Share Repurchase Program. Separate from the Share Repurchase Program, the Company repurchased 0.1 shares during both the nine months ended September 30, 2018 and 2017 , respectively, for an aggregate price of $5.8 and $2.9 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES From time to time, we are involved in legal proceedings that are incidental to the operation of our businesses. Some of these proceedings allege damages relating to environmental exposures, intellectual property matters, copyright infringement, personal injury claims, employment and employee benefit matters, government contract issues and commercial or contractual disputes and acquisitions or divestitures. We will continue to defend vigorously against all claims. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have a material adverse impact on our financial statements, unless otherwise noted below. Asbestos Matters 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 September 30, 2018 , there were approximately 25 thousand pending claims against ITT subsidiaries, including Goulds Pumps LLC, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: For the Nine Months Ended September 30 (in thousands) 2018 Pending claims – Beginning 26 New claims 3 Settlements (1 ) Dismissals (3 ) Pending claims – Ending 25 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 can fluctuate significantly from period to period. ITT expects more asbestos-related suits will be filed in the future, and ITT will continue to aggressively defend or seek a reasonable resolution, as appropriate. Asbestos litigation is a unique form of litigation. Frequently, the plaintiff sues a large number of defendants and does not state a specific claim amount. After filing a complaint, the plaintiff engages defendants in settlement negotiations to establish a settlement value based on certain criteria, including the number of defendants in the case. Rarely do the plaintiffs seek to collect all damages from one defendant. Rather, they seek to spread the liability, and thus the payments, among many defendants. As a result of this and other factors, the Company is unable to estimate the maximum potential exposure to pending claims and claims estimated to be filed over the next 10 years. Estimating our exposure to pending asbestos claims and those that may be filed in the future is subject to significant uncertainty and risk as there are multiple variables that can affect the timing, severity, quality, quantity and resolution of claims. Any predictions with respect to the variables impacting the estimate of the asbestos liability and related asset are subject to even greater uncertainty as the projection period lengthens. In light of the variables and uncertainties inherent in the long-term projection of the Company’s asbestos exposures, while it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years, which additional costs may be material, we do not believe there is a reasonable basis for estimating those costs at this time. The asbestos liability and related receivables reflect management’s best estimate of future events. However, future events affecting the key factors and other variables for either the asbestos liability or the related receivables could cause actual costs or recoveries to be materially higher or lower than currently estimated. Due to these uncertainties, as well as our inability to reasonably estimate any additional asbestos liability for claims which may be filed beyond the next 10 years, it is difficult to predict the ultimate cost of resolving all pending and unasserted asbestos claims. We believe it is possible that future events affecting the key factors and other variables within the next 10 years, as well as the cost of asbestos claims filed beyond the next 10 years, net of expected recoveries, could have a material adverse effect on our financial statements. Income Statement Costs/Benefit In the third quarter of each year, we conduct our annual remeasurement with the assistance of outside consultants in order to review and update the underlying assumptions used in our asbestos liability and related asset estimates. In each remeasurement, the underlying assumptions are updated based on our actual experience since our previous annual remeasurement, and we reassess the appropriate reference period used in determining each assumption and our expectations regarding future conditions, including inflation. Based on the results of this study, in the third quarter of 2018, we decreased our estimated undiscounted asbestos liability, including legal fees, by $8.6 , reflecting a decrease in costs the company estimates will be incurred to resolve all pending claims, as well as unasserted claims estimated to be filed over the next 10 years. The decrease in our estimated liability is a result of several developments, primarily favorable experience in settlement values and dismissal rates, partially offset by an increase in the number of cases expected to be adjudicated. Further, in the third quarter of 2018, the Company decreased its estimated asbestos-related assets by $15.8 , primarily due to lower than expected recoveries from certain insurers. During 2018, we entered into a settlement agreement and a settlement-in-principle with insurers to settle responsibility for multiple insurance claims. Under the terms of the agreements, the insurers agreed to upfront payments to a Qualified Settlement Fund (QSF) for past costs in addition to providing coverage for certain future asbestos claims on specified terms and conditions. In addition to the charges associated with our annual remeasurement, we record a net asbestos charge each quarter to maintain a rolling 10-year forecast period. The table below summarizes the total net asbestos charges for the three and nine months ended September 30, 2018 and 2017. Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Asbestos provision $ 13.4 $ 13.6 $ 39.3 $ 43.4 Net asbestos remeasurement cost (benefit) 7.2 (76.4 ) 7.2 (76.4 ) Insurance settlement agreement (24.9 ) — (57.0 ) — Asbestos-related benefit, net $ (4.3 ) $ (62.8 ) $ (10.5 ) $ (33.0 ) Changes in Financial Position The Company's estimated asbestos exposure, net of expected recoveries for the resolution of all pending claims and claims estimated to be filed in the next 10 years was $455.7 and $508.5 as of September 30, 2018 and December 31, 2017. The following table provides a rollforward of the estimated asbestos liability and related assets for the nine months ended September 30, 2018 and 2017. 2018 2017 For the Nine Months Ended September 30 Liability Asset Net Liability Asset Net Beginning balance $ 877.2 $ 368.7 $ 508.5 $ 954.3 $ 380.6 $ 573.7 Asbestos provision 48.5 9.2 39.3 51.1 7.7 43.4 Asbestos remeasurement (8.6 ) (15.8 ) 7.2 (66.4 ) 10.0 (76.4 ) Insurance settlement agreement — 57.0 (57.0 ) — — — Net cash activity (72.0 ) (29.7 ) (42.3 ) (63.5 ) (24.0 ) (39.5 ) Ending balance $ 845.1 $ 389.4 $ 455.7 $ 875.5 $ 374.3 $ 501.2 Current portion $ 73.3 $ 67.1 $ 77.4 $ 64.7 Noncurrent portion $ 771.8 $ 322.3 $ 798.1 $ 309.6 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 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 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 or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations. The following table provides a rollforward of the estimated environmental liability for the nine months ended September 30, 2018 and 2017 . For the Nine Months Ended September 30 2018 2017 Environmental liability - beginning balance $ 73.9 $ 76.6 Change in estimates for pre-existing accruals 3.4 2.4 Accruals added during the period for new matters 2.0 — Payments (14.6 ) (7.4 ) Foreign currency 0.1 0.1 Environmental liability - ending balance $ 64.8 $ 71.7 We are currently involved with 32 active environmental investigation and remediation sites. At September 30, 2018 , we have estimated the potential high-end liability range of environmental-related matters to be $115.4 . 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. The Company is cooperating with the government and has produced documents responsive to the subpoena. Based on its current analysis following discussions with DOJ to resolve the civil matter, the Company has accrued $5 as its current best estimate of the minimum amount of probable loss. It is reasonably possible that any actual loss related to this matter may be higher than this amount, but at this time management is unable to estimate a range of potential loss in excess of the amount accrued. In addition, as previously disclosed, the Criminal Division of DOJ also investigated this matter. Recently, the Fraud Section of DOJ’s Criminal Division advised the Company that it has decided, based on its assessment of the available information, to decline to prosecute the Company at this time. |
ACQUISITIONS (Notes)
ACQUISITIONS (Notes) | 9 Months Ended |
Sep. 30, 2018 | |
Acquisitions [Abstract] | |
Business Combination 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 , net of cash acquired. 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 final purchase price for Axtone is based on the net assets acquired and liabilities assumed as of January 26, 2017, with the excess of the purchase price of $86 recorded as goodwill. 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. Allocation of Purchase Price for Axtone Cash $ 9.4 Receivables 11.5 Inventory 13.6 Plant, property and equipment 13.1 Goodwill 86.0 Other intangible assets 9.9 Other assets 5.5 Accounts payable and accrued liabilities (15.2 ) Postretirement liabilities (4.2 ) Other liabilities (6.5 ) Net assets acquired $ 123.1 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [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 pumping and complementary equipment; 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 |
Basis of Accounting | Basis of Presentation The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the SEC and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in ITT’s Annual Report on Form 10-K for the year ended December 31, 2017 (the 2017 Annual Report) in preparing these unaudited financial statements, other than those described below. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2017 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. ITT’s quarterly financial periods end on the Saturday that is closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31st. For ease of presentation, the quarterly financial statements included herein are described as ending on the last day of the calendar quarter. Certain prior year amounts have been reclassified or restated to conform to the current year presentation. For further information, refer to Note 2 , Recent Accounting Pronouncements |
Revenue Recognition, Policy [Policy Text Block] | Updates to Summary of Significant Accounting Policies Revenue Recognition Revenue is derived from the sale of products and services to customers. We recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. For product sales, we consider practical and contractual limitations in determining whether there is an alternative use for the product. For example, long-term design and build contracts are typically highly customized to a customer’s specifications. For contracts with no alternative use and an enforceable right to payment for work performed to date, including a reasonable profit if the contract were terminated at the customer’s convenience, we recognize revenue over time. All other product sales are recognized at a point in time. For contracts recognized over time, we use the cost-to-total cost method or the units of delivery method, depending on the nature of the contract, including length of production time. For contracts recognized at a point in time, we recognize revenue when control passes to the customer, which is generally based on shipping terms that address when title and risk and rewards pass to the customer. However, we also consider certain customer acceptance provisions as certain contracts with customers include installation, testing, certification or other acceptance provisions. In instances where contractual terms include a provision for customer acceptance, we consider whether we have previously demonstrated that the product meets objective criteria specified by either the seller or customer in assessing whether control has passed to the customer. For service contracts, we recognize revenue as the services are rendered if the customer is benefiting from the service as it is performed, or otherwise upon completion of the service. Separately priced extended warranties are recognized as a separate performance obligation over the warranty period. The transaction price in our contracts consists of fixed consideration and the impact of variable consideration including returns, rebates and allowances and penalties. Variable consideration is generally estimated using a probability-weighted approach based on historical experience, known trends and current factors including market conditions and status of negotiations. When there is more than one performance obligation, the transaction price is allocated to the performance obligations based on the relative estimated standalone selling prices. If not sold separately, estimated standalone selling prices are determined considering various factors including market and pricing trends, geography, product customization and profit objectives. Revenue is recognized when the appropriate revenue recognition criteria for the individual performance obligations have been satisfied. 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 activities are accounted for as activities to fulfill a promise to transfer a product to a customer. As such, shipping and handling activities are not evaluated as a separate performance qualification. For most contracts, payment is due from the customer within 30 to 90 days after the product is delivered or the service has been performed. For design and build contracts, we generally collect progress payments from the customer throughout the term of the contract, resulting in contract assets or liabilities depending on the timing of the payments. Contract assets consist of unbilled amounts when revenue recognized exceeds customer billings. Contract liabilities consist of advance payments and billings in excess of revenue recognized. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Recent Acconting Pronouncements [Abstract] | |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In May 2014, the FASB issued ASU 2014-09 amending the existing accounting standards for revenue recognition. The new standard was effective for ITT as of January 1, 2018. Most revenue streams are recorded consistently under both the new standard and the previous standard. However, the timing of revenue recognition of certain design and build contracts in our Industrial Process segment, recognized using the percentage of completion method under the previous standard, is now dependent on certain terms within the contract and therefore will vary based on the new guidance. ITT adopted this guidance using a modified retrospective approach. As of the date of adoption, we have recognized approximately $49 of revenue and $5 of operating income on open contracts in our Industrial Process segment using the percentage of completion method that under the new guidance are recognized at a point in time, resulting in a cumulative adjustment to the opening balance in retained earnings of $4 , net of tax. The comparative information has not been restated and continues to be reported under the accounting guidance in effect in those periods. Additionally, the new guidance resulted in a change in balance sheet presentation. Certain progress payments, previously presented as a reduction of inventory, are now presented within accrued liabilities. Unbilled receivables, previously presented within receivables, net, are now presented within other current or non-current assets. The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet related to the adoption of ASU 2014-09 is as follows: Balance as of December 31, 2017 Cumulative Effect of Adjustments Balance as of January 1, 2018 Assets: Receivables, net $ 629.6 $ (71.9 ) $ 557.7 Inventories, net 311.9 66.3 378.2 Other current assets 147.4 43.2 190.6 Deferred income taxes 149.9 1.0 150.9 Liabilities: Accrued liabilities 384.4 43.7 428.1 Other non-current liabilities 175.6 (1.0 ) 174.6 Equity: Retained earnings 1,856.1 (4.1 ) 1,852.0 The impacts to our Consolidated Statements of Operations for the three and nine months ended September 30, 2018 , and our Consolidated Balance Sheet as of September 30, 2018 had we not adopted ASU 2014-09 are as follows: Three Months Nine Months As of or for the Periods Ended September 30, 2018 As Reported Amounts under previous standard Effect of Change As Reported Amounts under previous standard Effect of Change Statement of Operations Revenue $ 680.6 $ 683.9 $ 3.3 $ 2,066.7 $ 2,078.2 $ 11.5 Costs of revenue 454.1 456.4 2.3 1,390.0 1,399.6 9.6 Income tax expense 25.9 25.9 — 42.4 42.6 0.2 Net income 111.1 112.1 1.0 282.3 284.0 1.7 Balance Sheets Assets: Receivables, net 562.9 613.5 50.6 Inventories, net 391.4 320.2 (71.2 ) Other current assets 151.8 130.5 (21.3 ) Deferred income taxes 163.6 162.4 (1.2 ) Liabilities: Accrued liabilities 416.9 367.0 (49.9 ) Other non-current liabilities 165.5 166.5 1.0 Equity: Retained earnings 2,065.7 2,071.5 5.8 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 are 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 are no longer classified as an operating expense. In addition, only the service cost component will be eligible for capitalization on the balance sheet. The ASU 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. ITT adopted the ASU beginning in the first quarter of 2018. Service costs eligible for capitalization on the balance sheet in 2018 are considered immaterial. As a result of the adoption, our Consolidated Statement of Operations for the three and nine months ended September 30, 2017 was restated as follows: For the Three Months Ended September 30, 2017 Previously Reported Effect of Change Restated Costs of revenue $ 441.9 $ (0.7 ) $ 441.2 General and administrative expenses (a) 74.6 (4.5 ) 70.1 Research and development expenses 23.1 (0.1 ) 23.0 Operating income 127.8 5.3 133.1 Interest and non-operating expenses, net 0.2 5.3 5.5 For the Nine Months Ended September 30, 2017 Previously Reported Effect of Change Restated Costs of revenue $ 1,291.9 $ (2.1 ) $ 1,289.8 General and administrative expenses (a) 206.1 (5.7 ) 200.4 Sales and marketing expenses 128.3 (0.1 ) 128.2 Research and development expenses 68.2 (0.2 ) 68.0 Operating income 241.1 8.1 249.2 Interest and non-operating expenses, net 0.1 8.1 8.2 (a) Previously reported General and administrative expenses excludes $0.9 in both the three and nine months ended September 30, 2017 related to gains on the sale of long-lived assets which has been reclassed to conform with current year presentation. In November 2016, the FASB issued ASU 2016-18 which requires restricted cash to be included with cash and cash equivalents when reconciling the beginning and ending amounts on the Statement of Cash Flows. In addition, when cash and restricted cash are presented on separate lines on the Balance Sheet, an entity is required to reconcile the total cash, cash equivalents and restricted cash in the Statement of Cash Flows to the related line items in the Balance Sheet. The ASU requires a retrospective transition method and ITT adopted the ASU beginning in the first quarter of 2018. 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 resulting in a cumulative-effect adjustment of $1.0 to increase retained earnings. The increase to retained earnings was driven by previously unrecognized tax benefits due to net operating loss carryforwards of $2.1 , offset by a reduction in retained earnings of $1.1 |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Pronouncements Not Yet AdoptedIn 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 financing 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 the liabilities must be 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 under the modified retrospective approach. We are currently assessing our existing lease agreements and related financial disclosures to evaluate the impact of these amendments on our financial statements. |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS Adoption of ASU 2014-09 (Tables) - Modified Retrospective Adoption of New Accounting Pronouncements [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Adoption of ASU 2014-09, Cumulative Effect Adjustments Due to Open Contracts [Table Text Block] | The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet related to the adoption of ASU 2014-09 is as follows: Balance as of December 31, 2017 Cumulative Effect of Adjustments Balance as of January 1, 2018 Assets: Receivables, net $ 629.6 $ (71.9 ) $ 557.7 Inventories, net 311.9 66.3 378.2 Other current assets 147.4 43.2 190.6 Deferred income taxes 149.9 1.0 150.9 Liabilities: Accrued liabilities 384.4 43.7 428.1 Other non-current liabilities 175.6 (1.0 ) 174.6 Equity: Retained earnings 1,856.1 (4.1 ) 1,852.0 |
Effect of Change from Adoption of ASU 2014-09 [Table Text Block] | The impacts to our Consolidated Statements of Operations for the three and nine months ended September 30, 2018 , and our Consolidated Balance Sheet as of September 30, 2018 had we not adopted ASU 2014-09 are as follows: Three Months Nine Months As of or for the Periods Ended September 30, 2018 As Reported Amounts under previous standard Effect of Change As Reported Amounts under previous standard Effect of Change Statement of Operations Revenue $ 680.6 $ 683.9 $ 3.3 $ 2,066.7 $ 2,078.2 $ 11.5 Costs of revenue 454.1 456.4 2.3 1,390.0 1,399.6 9.6 Income tax expense 25.9 25.9 — 42.4 42.6 0.2 Net income 111.1 112.1 1.0 282.3 284.0 1.7 Balance Sheets Assets: Receivables, net 562.9 613.5 50.6 Inventories, net 391.4 320.2 (71.2 ) Other current assets 151.8 130.5 (21.3 ) Deferred income taxes 163.6 162.4 (1.2 ) Liabilities: Accrued liabilities 416.9 367.0 (49.9 ) Other non-current liabilities 165.5 166.5 1.0 Equity: Retained earnings 2,065.7 2,071.5 5.8 |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS Adoption of ASU 2017-07 (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Standards Update 2017-07 [Member] | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | As a result of the adoption, our Consolidated Statement of Operations for the three and nine months ended September 30, 2017 was restated as follows: For the Three Months Ended September 30, 2017 Previously Reported Effect of Change Restated Costs of revenue $ 441.9 $ (0.7 ) $ 441.2 General and administrative expenses (a) 74.6 (4.5 ) 70.1 Research and development expenses 23.1 (0.1 ) 23.0 Operating income 127.8 5.3 133.1 Interest and non-operating expenses, net 0.2 5.3 5.5 For the Nine Months Ended September 30, 2017 Previously Reported Effect of Change Restated Costs of revenue $ 1,291.9 $ (2.1 ) $ 1,289.8 General and administrative expenses (a) 206.1 (5.7 ) 200.4 Sales and marketing expenses 128.3 (0.1 ) 128.2 Research and development expenses 68.2 (0.2 ) 68.0 Operating income 241.1 8.1 249.2 Interest and non-operating expenses, net 0.1 8.1 8.2 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | Revenue Operating Income (a) Operating Margin For the Three Months Ended September 30 2018 2017 2018 2017 2018 2017 Industrial Process $ 205.0 $ 196.2 $ 23.7 $ 14.3 11.6 % 7.3 % Motion Technologies 310.3 300.1 58.5 49.2 18.9 % 16.4 % Connect & Control Technologies 166.0 149.4 26.0 18.0 15.7 % 12.0 % Total segment results 681.3 645.7 108.2 81.5 15.9 % 12.6 % Asbestos-related benefit, net — — 4.3 62.8 — — Gain on sale of long-lived assets — — 38.0 — — — Eliminations / Other corporate costs (0.7 ) (0.7 ) (12.7 ) (11.2 ) — — Total Eliminations / Corporate and Other costs (0.7 ) (0.7 ) 29.6 51.6 — — Total $ 680.6 $ 645.0 $ 137.8 $ 133.1 20.2 % 20.6 % Revenue Operating Income (a) Operating Margin For the Nine Months Ended September 30 2018 2017 2018 2017 2018 2017 Industrial Process $ 598.0 $ 574.6 $ 64.0 $ 37.7 10.7 % 6.6 % Motion Technologies 982.8 877.5 175.9 156.3 17.9 % 17.8 % Connect & Control Technologies 488.0 452.3 76.3 48.9 15.6 % 10.8 % Total segment results 2,068.8 1,904.4 316.2 242.9 15.3 % 12.8 % Asbestos-related benefit, net — — 10.5 33.0 — — Gain on sale of long-lived assets — — 38.0 — — — Eliminations / Other corporate costs (2.1 ) (2.7 ) (36.0 ) (26.7 ) — — Total Eliminations / Corporate and Other costs (2.1 ) (2.7 ) 12.5 6.3 — — Total $ 2,066.7 $ 1,901.7 $ 328.7 $ 249.2 15.9 % 13.1 % |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Total Assets Capital Expenditures Depreciation & Amortization For the Nine Months Ended September 30 2018 2017 (b) 2018 2017 2018 2017 Industrial Process $ 997.7 $ 1,025.7 $ 3.5 $ 15.8 $ 20.5 $ 20.7 Motion Technologies 1,150.9 1,140.4 54.1 55.1 42.8 35.1 Connect & Control Technologies 707.1 694.8 6.0 7.9 16.2 17.3 Corporate and Other 989.0 839.3 0.2 0.4 3.0 4.5 Total $ 3,844.7 $ 3,700.2 $ 63.8 $ 79.2 $ 82.5 $ 77.6 |
REVENUE Revenue (Tables)
REVENUE Revenue (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table represents our revenue disaggregated by product category for the three and nine months ended September 30, 2018 . For the Three Months Ended September 30, 2018 Industrial Process Motion Technologies Connect & Control Technologies Eliminations Total Industrial pumps $ 145.6 $ — $ — $ — $ 145.6 Oil & gas pumps and components 59.4 — 12.5 — 71.9 Vehicle components — 270.0 — — 270.0 Aerospace & defense components — 1.3 92.9 — 94.2 Rail components — 35.4 — — 35.4 Industrial components and other — 3.6 60.6 (0.7 ) 63.5 Total $ 205.0 $ 310.3 $ 166.0 $ (0.7 ) $ 680.6 For the Nine Months Ended September 30, 2018 Industrial Process Motion Technologies Connect & Control Technologies Eliminations Total Industrial pumps $ 440.3 $ — $ — $ — $ 440.3 Oil & gas pumps and components 157.7 — 31.6 — 189.3 Vehicle components — 854.0 — (0.1 ) 853.9 Aerospace & defense components — 5.8 276.6 — 282.4 Rail components — 112.5 — — 112.5 Industrial components and other — 10.5 179.8 (2.0 ) 188.3 Total $ 598.0 $ 982.8 $ 488.0 $ (2.1 ) $ 2,066.7 |
Contract with Customer, Asset and Liability [Table Text Block] | The following table represents our net contract assets and liabilities as of September 30, 2018 . September 30, 2018 January 1, 2018 Change Current contract assets $ 21.3 $ 43.2 (50.7 )% Noncurrent contract assets 0.7 — 100.0 % Current contract liabilities (63.0 ) (61.7 ) 2.1 % Net contract liabilities $ (41.0 ) $ (18.5 ) 121.6 % |
RESTRUCTURING ACTIONS RESTRUC_2
RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Statements of Operations for the three and nine months ended September 30, 2018 and 2017 . We have initiated various restructuring activities throughout our businesses during the past two years, however there were no restructuring activities considered to be individually significant. Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Severance costs $ 0.8 $ 4.6 $ 2.4 $ 7.3 Asset write-offs — 0.1 — 0.1 Other restructuring costs 0.1 — 0.6 1.6 Total restructuring costs $ 0.9 $ 4.7 $ 3.0 $ 9.0 By segment: Industrial Process $ — $ 3.2 $ — $ 4.9 Motion Technologies 0.4 0.5 1.7 1.3 Connect & Control Technologies 0.5 1.6 1.3 2.8 Corporate and Other — (0.6 ) — — |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the nine months ended September 30, 2018 and 2017 . For the Periods Ended September 30 2018 2017 Restructuring accruals - beginning balance $ 8.9 $ 14.6 Restructuring costs 3.0 9.0 Cash payments (5.9 ) (13.8 ) Asset write-offs — (0.1 ) Foreign exchange translation and other 0.8 1.4 Restructuring accrual - ending balance $ 6.8 $ 11.1 By accrual type: Severance accrual $ 6.0 $ 9.9 Facility carrying and other costs accrual 0.8 1.2 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Loss Per Share | The following table provides a reconciliation of the data used in the calculation of basic and diluted earnings per share from continuing operations attributable to ITT for the three and nine months ended September 30, 2018 and 2017 . Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Basic weighted average common shares outstanding 87.6 88.0 87.7 88.3 Add: Dilutive impact of outstanding equity awards 1.1 0.7 1.0 0.7 Diluted weighted average common shares outstanding 88.7 88.7 88.7 89.0 |
RECEIVABLES, NET (Tables)
RECEIVABLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Receivables [Abstract] | |
RECEIVABLES, NET | September 30, December 31, Trade accounts receivable (See Note 2) $ 557.9 $ 601.4 Notes receivable 5.7 3.9 Other 17.5 40.4 Receivables, gross 581.1 645.7 Less: Allowance for doubtful accounts (18.2 ) (16.1 ) Receivables, net $ 562.9 $ 629.6 |
INVENTORIES, NET (Tables)
INVENTORIES, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | September 30, December 31, Finished goods $ 63.9 $ 55.9 Work in process 72.4 54.8 Raw materials 214.9 184.4 Inventoried costs related to long-term contracts 40.2 38.1 Total inventory before progress payments 391.4 333.2 Less: Progress payments (see Note 2) — (21.3 ) Inventories, net $ 391.4 $ 311.9 |
OTHER CURRENT AND NON-CURRENT_2
OTHER CURRENT AND NON-CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current and Non Current Assets | September 30, December 31, Asbestos-related assets $ 67.1 $ 64.7 Advance payments and other prepaid expenses 43.4 50.9 Short-term contract asset (see Note 2) 21.3 — Prepaid income taxes 18.8 30.3 Other 1.2 1.5 Other current assets $ 151.8 $ 147.4 Other employee benefit-related assets $ 118.8 $ 111.3 Capitalized software costs 35.2 41.9 Environmental-related assets 23.3 24.5 Equity method investments 8.0 6.7 Other 20.5 18.5 Other non-current assets $ 205.8 $ 202.9 |
PLANT, PROPERTY AND EQUIPMENT_2
PLANT, PROPERTY AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Plant, Property and Equipment, Net | September 30, December 31, Land and improvements $ 27.8 $ 28.7 Machinery and equipment 1,049.7 1,039.9 Buildings and improvements 266.0 262.5 Furniture, fixtures and office equipment 73.0 74.5 Construction work in progress 48.2 58.4 Other 10.5 10.9 Plant, property and equipment, gross 1,475.2 1,474.9 Less: Accumulated depreciation (974.6 ) (953.2 ) Plant, property and equipment, net $ 500.6 $ 521.7 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the Carrying Amount of Goodwill | Goodwill The following table provides a rollforward of the carrying amount of goodwill for the nine months ended September 30, 2018 by segment. Industrial Process Motion Technologies Connect & Control Technologies Total Goodwill - December 31, 2017 $ 324.5 $ 295.6 $ 266.7 $ 886.8 Adjustments to purchase price allocations — 3.3 — 3.3 Foreign exchange translation (6.5 ) (3.2 ) (0.9 ) (10.6 ) Goodwill - September 30, 2018 $ 318.0 $ 295.7 $ 265.8 $ 879.5 |
Other Intangible Assets | Other Intangible Assets, Net Information regarding our other intangible assets is as follows: September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Intangibles Gross Carrying Amount Accumulated Amortization Net Intangibles Customer relationships $ 164.5 $ (83.2 ) $ 81.3 $ 166.2 $ (74.4 ) $ 91.8 Proprietary technology 53.8 (24.7 ) 29.1 54.4 (21.8 ) 32.6 Patents and other 12.6 (9.3 ) 3.3 13.5 (9.2 ) 4.3 Finite-lived intangible total 230.9 (117.2 ) 113.7 234.1 (105.4 ) 128.7 Indefinite-lived intangibles 27.3 — 27.3 27.5 — 27.5 Other intangible assets $ 258.2 $ (117.2 ) $ 141.0 $ 261.6 $ (105.4 ) $ 156.2 |
ACCRUED AND OTHER CURRENT LIA_2
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities and Other Non-Current Liabilities | September 30, December 31, Compensation and other employee-related benefits $ 146.7 $ 147.2 Contract liabilities and other customer-related liabilities (see Note 2) 84.4 45.5 Asbestos-related liabilities 73.3 77.1 Accrued income taxes and other tax-related liabilities 39.5 36.1 Environmental liabilities and other legal matters 22.4 22.8 Accrued warranty costs 16.4 17.0 Other accrued liabilities 34.2 38.7 Accrued liabilities $ 416.9 $ 384.4 Environmental liabilities $ 54.5 $ 63.6 Compensation and other employee-related benefits 35.6 36.4 Deferred income taxes and other tax-related accruals 26.1 19.3 Other 49.3 56.3 Other non-current liabilities $ 165.5 $ 175.6 |
DEBT Debt (Tables)
DEBT Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt [Table Text Block] | September 30, December 31, Commercial paper $ 144.9 $ 162.4 Current maturities of long-term debt and capital leases 1.4 1.2 Short-term loans and current maturities of long-term debt 146.3 163.6 Long-term debt and capital leases 9.9 8.3 Total debt and capital leases $ 156.2 $ 171.9 |
POSTRETIREMENT BENEFIT PLANS (T
POSTRETIREMENT BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Retirement Benefits [Abstract] | |
Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans | The following table provides the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three and nine months ended September 30, 2018 and 2017 . 2018 2017 For the Three Months Ended September 30 Pension Other Benefits Total Pension Other Benefits Total Service cost $ 0.4 $ 0.2 $ 0.6 $ 0.8 $ 0.2 $ 1.0 Interest cost 3.0 1.0 4.0 3.0 1.1 4.1 Expected return on plan assets (a) (4.4 ) — (4.4 ) (3.9 ) (0.1 ) (4.0 ) Amortization of prior service cost (benefit) 0.2 (1.3 ) (1.1 ) 0.2 (1.4 ) (1.2 ) Amortization of net actuarial loss 1.5 0.9 2.4 2.1 1.1 3.2 Net periodic benefit cost 0.7 0.8 1.5 2.2 0.9 3.1 Loss from settlement or curtailment 1.4 — 1.4 3.7 — 3.7 Total net periodic benefit cost $ 2.1 $ 0.8 $ 2.9 $ 5.9 $ 0.9 $ 6.8 2018 2017 For the Nine Months Ended September 30 Pension Other Total Pension Other Total Service cost $ 1.2 $ 0.6 $ 1.8 $ 2.0 $ 0.6 $ 2.6 Interest cost 8.6 3.2 11.8 9.0 3.4 12.4 Expected return on plan assets (a) (11.2 ) (0.2 ) (11.4 ) (11.4 ) (0.3 ) (11.7 ) Amortization of prior service cost (benefit) 0.6 (3.9 ) (3.3 ) 0.7 (4.3 ) (3.6 ) Amortization of net actuarial loss 4.5 3.1 7.6 5.6 3.2 8.8 Net periodic benefit cost 3.7 2.8 6.5 5.9 2.6 8.5 Loss from settlement or curtailment 1.4 — 1.4 3.7 — 3.7 Total net periodic benefit cost $ 5.1 $ 2.8 $ 7.9 $ 9.6 $ 2.6 $ 12.2 (a) Plan administrative expenses of $0.7 and $2.3 for the three and nine months ended September 30, 2017 |
LONG-TERM INCENTIVE EMPLOYEE _2
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Long-Term Incentive Employee Compensation Costs | The following table provides the components of LTIP costs for the three and nine months ended September 30, 2018 and 2017 . Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Equity-based awards $ 6.7 $ 5.2 $ 16.9 $ 12.5 Liability-based awards 0.9 0.8 1.7 1.7 Total share-based compensation expense $ 7.6 $ 6.0 $ 18.6 $ 14.2 |
Summary of Long-Term Incentive Plan Award Grants during year | During the nine months ended September 30, 2018 , we granted the following LTIP awards as provided in the table below: # of Awards Granted Weighted Average Grant Date Fair Value Per Share Restricted stock units (RSUs) 0.3 $ 53.26 Performance stock units (PSUs) 0.1 $ 57.81 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Net Asbestos Charges [Table Text Block] | The table below summarizes the total net asbestos charges for the three and nine months ended September 30, 2018 and 2017. Three Months Nine Months For the Periods Ended September 30 2018 2017 2018 2017 Asbestos provision $ 13.4 $ 13.6 $ 39.3 $ 43.4 Net asbestos remeasurement cost (benefit) 7.2 (76.4 ) 7.2 (76.4 ) Insurance settlement agreement (24.9 ) — (57.0 ) — Asbestos-related benefit, net $ (4.3 ) $ (62.8 ) $ (10.5 ) $ (33.0 ) |
Product Liability Contingencies [Table Text Block] | As of September 30, 2018 , there were approximately 25 thousand pending claims against ITT subsidiaries, including Goulds Pumps LLC, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows: For the Nine Months Ended September 30 (in thousands) 2018 Pending claims – Beginning 26 New claims 3 Settlements (1 ) Dismissals (3 ) Pending claims – Ending 25 |
Roll Forward of Asbestos Liability and Related Assets | The following table provides a rollforward of the estimated asbestos liability and related assets for the nine months ended September 30, 2018 and 2017. 2018 2017 For the Nine Months Ended September 30 Liability Asset Net Liability Asset Net Beginning balance $ 877.2 $ 368.7 $ 508.5 $ 954.3 $ 380.6 $ 573.7 Asbestos provision 48.5 9.2 39.3 51.1 7.7 43.4 Asbestos remeasurement (8.6 ) (15.8 ) 7.2 (66.4 ) 10.0 (76.4 ) Insurance settlement agreement — 57.0 (57.0 ) — — — Net cash activity (72.0 ) (29.7 ) (42.3 ) (63.5 ) (24.0 ) (39.5 ) Ending balance $ 845.1 $ 389.4 $ 455.7 $ 875.5 $ 374.3 $ 501.2 Current portion $ 73.3 $ 67.1 $ 77.4 $ 64.7 Noncurrent portion $ 771.8 $ 322.3 $ 798.1 $ 309.6 |
Rollforward of Environmental Liability and Related Assets | The following table provides a rollforward of the estimated environmental liability for the nine months ended September 30, 2018 and 2017 . For the Nine Months Ended September 30 2018 2017 Environmental liability - beginning balance $ 73.9 $ 76.6 Change in estimates for pre-existing accruals 3.4 2.4 Accruals added during the period for new matters 2.0 — Payments (14.6 ) (7.4 ) Foreign currency 0.1 0.1 Environmental liability - ending balance $ 64.8 $ 71.7 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Axtone Railway Components Acquisition [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Allocation of Purchase Price for Axtone Cash $ 9.4 Receivables 11.5 Inventory 13.6 Plant, property and equipment 13.1 Goodwill 86.0 Other intangible assets 9.9 Other assets 5.5 Accounts payable and accrued liabilities (15.2 ) Postretirement liabilities (4.2 ) Other liabilities (6.5 ) Net assets acquired $ 123.1 |
RECENT ACCOUNTING PRONOUNCEME_5
RECENT ACCOUNTING PRONOUNCEMENTS Adoption of ASU 2014-09 - Opening Balance Sheet Cumulative Effect Adjustments (Details) - Accounting Standards Update 2014-09 [Member] - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Accounts Receivable [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 71.9 | ||
Balance as of January 1, 2018 - Subsequent to Adoption of ASU 2014-09 | $ 557.7 | ||
Balance as of December 31, 2017 - Prior to Adoption of ASU 2014-09 | $ 629.6 | ||
Inventories [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (66.3) | ||
Balance as of January 1, 2018 - Subsequent to Adoption of ASU 2014-09 | 378.2 | ||
Balance as of December 31, 2017 - Prior to Adoption of ASU 2014-09 | 311.9 | ||
Other Current Assets [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (43.2) | ||
Balance as of January 1, 2018 - Subsequent to Adoption of ASU 2014-09 | 190.6 | ||
Balance as of December 31, 2017 - Prior to Adoption of ASU 2014-09 | 147.4 | ||
Deferred Tax Asset [Domain] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (1) | ||
Balance as of January 1, 2018 - Subsequent to Adoption of ASU 2014-09 | 150.9 | ||
Balance as of December 31, 2017 - Prior to Adoption of ASU 2014-09 | 149.9 | ||
Accrued Liabilities [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 43.7 | ||
Balance as of January 1, 2018 - Subsequent to Adoption of ASU 2014-09 | (428.1) | ||
Balance as of December 31, 2017 - Prior to Adoption of ASU 2014-09 | (384.4) | ||
Other Noncurrent Liabilities [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | (1) | ||
Balance as of January 1, 2018 - Subsequent to Adoption of ASU 2014-09 | (174.6) | ||
Balance as of December 31, 2017 - Prior to Adoption of ASU 2014-09 | (175.6) | ||
Retained Earnings [Member] | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ (4.1) | ||
Balance as of January 1, 2018 - Subsequent to Adoption of ASU 2014-09 | $ (1,852) | ||
Balance as of December 31, 2017 - Prior to Adoption of ASU 2014-09 | $ (1,856.1) |
RECENT ACCOUNTING PRONOUNCEME_6
RECENT ACCOUNTING PRONOUNCEMENTS Adoption of ASU 2014-09 - Hypothetical Results Under Previous Standard (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Revenue | $ 680.6 | $ 645 | $ 2,066.7 | $ 1,901.7 | |
Costs of revenue | 454.1 | 441.2 | 1,390 | 1,289.8 | |
Income tax expense | 25.9 | 40.6 | 42.4 | 60.3 | |
Net income | 111.1 | $ 86.9 | 282.3 | $ 180.4 | |
Receivables, net | 562.9 | 562.9 | $ 629.6 | ||
Inventories, net | 391.4 | 391.4 | 311.9 | ||
Total current assets | 151.8 | 151.8 | 147.4 | ||
Deferred income taxes | 163.6 | 163.6 | 149.9 | ||
Other non-current assets | 205.8 | 205.8 | 202.9 | ||
Accrued liabilities | 416.9 | 416.9 | 384.4 | ||
Other non-current liabilities | 165.5 | 165.5 | 175.6 | ||
Retained earnings | 2,065.7 | 2,065.7 | $ 1,856.1 | ||
Hypothetical Amount Under Previous Standard [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Revenue | 683.9 | 2,078.2 | |||
Costs of revenue | 456.4 | 1,399.6 | |||
Income tax expense | 25.9 | 42.6 | |||
Net income | 112.1 | 284 | |||
Receivables, net | 613.5 | 613.5 | |||
Inventories, net | 320.2 | 320.2 | |||
Total current assets | 130.5 | 130.5 | |||
Deferred income taxes | 162.4 | 162.4 | |||
Accrued liabilities | 367 | 367 | |||
Other non-current liabilities | 166.5 | 166.5 | |||
Retained earnings | 2,071.5 | 2,071.5 | |||
Hypothetical Effect of Change Due to Adoption of New Accounting Pronouncement [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Revenue | 3.3 | 11.5 | |||
Costs of revenue | 2.3 | 9.6 | |||
Income tax expense | 0 | 0.2 | |||
Net income | 1 | 1.7 | |||
Receivables, net | 50.6 | 50.6 | |||
Inventories, net | (71.2) | (71.2) | |||
Total current assets | (21.3) | (21.3) | |||
Deferred income taxes | (1.2) | (1.2) | |||
Accrued liabilities | (49.9) | (49.9) | |||
Other non-current liabilities | 1 | 1 | |||
Retained earnings | $ 5.8 | $ 5.8 |
RECENT ACCOUNTING PRONOUNCEME_7
RECENT ACCOUNTING PRONOUNCEMENTS Adoption of ASU 2014-09 - Textuals (Details) - Previously Recognized Amount on Open Contracts at Time of Adoption of Revenue ASU [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Sales Revenue, Net [Member] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 49 |
Operating Income (Loss) [Member] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | 5 |
Retained Earnings [Member] | Initial Application Period Cumulative Effect Transition [Domain] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 4 |
RECENT ACCOUNTING PRONOUNCEME_8
RECENT ACCOUNTING PRONOUNCEMENTS Adoption of ASU 2017-07 - Restatement of Prior Year Amounts (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Costs of revenue | $ 454.1 | $ 441.2 | $ 1,390 | $ 1,289.8 | |||
General and administrative expenses | 68 | 70.1 | 196.6 | 200.4 | |||
Sales and marketing expenses | 40.8 | 41.3 | 127.7 | 128.2 | |||
Research and development expenses | 24.2 | 23 | 74.7 | 68 | |||
Operating income | 137.8 | 133.1 | [1] | 328.7 | 249.2 | [1] | |
Interest and non-operating expenses, net | $ 0.7 | 5.5 | $ 4 | 8.2 | |||
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Costs of revenue | (0.7) | (2.1) | |||||
General and administrative expenses | (4.5) | (5.7) | |||||
Sales and marketing expenses | (0.1) | ||||||
Research and development expenses | (0.1) | (0.2) | |||||
Operating income | 5.3 | 8.1 | |||||
Interest and non-operating expenses, net | 5.3 | 8.1 | |||||
Accounting Standards Update 2017-07 [Member] | Previously Reported [Member] | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Costs of revenue | 441.9 | 1,291.9 | |||||
General and administrative expenses | [2] | 74.6 | 206.1 | ||||
Sales and marketing expenses | 128.3 | ||||||
Research and development expenses | 23.1 | 68.2 | |||||
Operating income | 127.8 | 241.1 | |||||
Interest and non-operating expenses, net | $ 0.2 | $ 0.1 | |||||
[1] | (a) Operating income and operating margin for the three and nine months ended September 30, 2017 has been restated to reflect the adoption of ASU 2017-07. Refer to Note 2 , Recent Accounting Pronouncements | ||||||
[2] | (a) Previously reported General and administrative expenses excludes $0.9 in both the three and nine months ended September 30, 2017 |
RECENT ACCOUNTING PRONOUNCEME_9
RECENT ACCOUNTING PRONOUNCEMENTS Adoption of ASU 2016-06 - Textuals (Details) - Adjustments for New Accounting Pronouncement [Member] $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Previously Unrecognized Tax Benefits Due to NOL Carryforwards [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative adjustment for accounting change (See Note 2) | $ 2.1 |
Forfeiture Rate Estimate Adjustment [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative adjustment for accounting change (See Note 2) | 1.1 |
Accounting Standards Update 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative adjustment for accounting change (See Note 2) | $ 1 |
SEGMENT INFORMATION - Schedule
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Revenue (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | |||
Segment Reporting Information [Line Items] | ||||||
Number of Reportable Segments | Segment | 3 | |||||
Revenue | $ 680.6 | $ 645 | $ 2,066.7 | $ 1,901.7 | ||
Operating income | $ 137.8 | $ 133.1 | [1] | $ 328.7 | $ 249.2 | [1] |
Operating Margin | 20.20% | 20.60% | [1] | 15.90% | 13.10% | [1] |
Total Segment Results [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 681.3 | $ 645.7 | $ 2,068.8 | $ 1,904.4 | ||
Operating income | $ 108.2 | $ 81.5 | [1] | $ 316.2 | $ 242.9 | [1] |
Operating Margin | 15.90% | 12.60% | [1] | 15.30% | 12.80% | [1] |
Industrial Process [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 205 | $ 196.2 | $ 598 | $ 574.6 | ||
Operating income | $ 23.7 | $ 14.3 | [1] | $ 64 | $ 37.7 | [1] |
Operating Margin | 11.60% | 7.30% | [1] | 10.70% | 6.60% | [1] |
Motion Technologies [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 310.3 | $ 300.1 | $ 982.8 | $ 877.5 | ||
Operating income | $ 58.5 | $ 49.2 | [1] | $ 175.9 | $ 156.3 | [1] |
Operating Margin | 18.90% | 16.40% | [1] | 17.90% | 17.80% | [1] |
Connect & Control Technologies [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 166 | $ 149.4 | $ 488 | $ 452.3 | ||
Operating income | $ 26 | $ 18 | [1] | $ 76.3 | $ 48.9 | [1] |
Operating Margin | 15.70% | 12.00% | [1] | 15.60% | 10.80% | [1] |
Total Eliminations / Corporate and Other costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ (0.7) | $ (0.7) | $ (2.1) | $ (2.7) | ||
Operating income | $ 29.6 | $ 51.6 | $ 12.5 | $ 6.3 | ||
Operating Margin | 0.00% | 0.00% | 0.00% | 0.00% | ||
Asbestos-related benefit, net | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 | ||
Operating income | $ 4.3 | $ 62.8 | $ 10.5 | $ 33 | ||
Operating Margin | 0.00% | 0.00% | 0.00% | 0.00% | ||
Gain on sale of long-lived assets | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 | ||
Operating income | $ 38 | $ 0 | $ 38 | $ 0 | ||
Operating Margin | 0.00% | 0.00% | 0.00% | 0.00% | ||
Eliminations / Other corporate costs | ||||||
Segment Reporting Information [Line Items] | ||||||
Revenue | $ (0.7) | $ (0.7) | $ (2.1) | $ (2.7) | ||
Operating income | $ (12.7) | $ (11.2) | $ (36) | $ (26.7) | ||
Operating Margin | 0.00% | 0.00% | 0.00% | 0.00% | ||
[1] | (a) Operating income and operating margin for the three and nine months ended September 30, 2017 has been restated to reflect the adoption of ASU 2017-07. Refer to Note 2 , Recent Accounting Pronouncements |
SEGMENT INFORMATION - Schedul_2
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | [1] | |
Segment Reporting Information [Line Items] | ||||
Total Assets | $ 3,844.7 | $ 3,700.2 | ||
Capital Expenditures | 63.8 | $ 79.2 | ||
Depreciation & Amortization | 82.5 | 77.6 | ||
Industrial Process [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 997.7 | 1,025.7 | ||
Capital Expenditures | 3.5 | 15.8 | ||
Depreciation & Amortization | 20.5 | 20.7 | ||
Motion Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 1,150.9 | 1,140.4 | ||
Capital Expenditures | 54.1 | 55.1 | ||
Depreciation & Amortization | 42.8 | 35.1 | ||
Connect & Control Technologies [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 707.1 | 694.8 | ||
Capital Expenditures | 6 | 7.9 | ||
Depreciation & Amortization | 16.2 | 17.3 | ||
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Assets | 989 | $ 839.3 | ||
Capital Expenditures | 0.2 | 0.4 | ||
Depreciation & Amortization | $ 3 | $ 4.5 | ||
[1] | (b) Amounts reflect balances as of December 31, 2017 |
REVENUE Revenue (Details)
REVENUE Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 680.6 | $ 2,066.7 |
Industrial Pumps [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 145.6 | 440.3 |
Oil and Gas Pumps and Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 71.9 | 189.3 |
Vehicle Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 270 | 853.9 |
Aerospace and Defense Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 94.2 | 282.4 |
Rail Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 35.4 | 112.5 |
Industrial Components and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 63.5 | 188.3 |
Industrial Process [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 205 | 598 |
Industrial Process [Member] | Industrial Pumps [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 145.6 | 440.3 |
Industrial Process [Member] | Oil and Gas Pumps and Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 59.4 | 157.7 |
Industrial Process [Member] | Vehicle Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Industrial Process [Member] | Aerospace and Defense Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Industrial Process [Member] | Rail Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Industrial Process [Member] | Industrial Components and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Motion Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 310.3 | 982.8 |
Motion Technologies [Member] | Industrial Pumps [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Motion Technologies [Member] | Oil and Gas Pumps and Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Motion Technologies [Member] | Vehicle Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 270 | 854 |
Motion Technologies [Member] | Aerospace and Defense Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 1.3 | 5.8 |
Motion Technologies [Member] | Rail Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 35.4 | 112.5 |
Motion Technologies [Member] | Industrial Components and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 3.6 | 10.5 |
Connect & Control Technologies [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 166 | 488 |
Connect & Control Technologies [Member] | Industrial Pumps [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Connect & Control Technologies [Member] | Oil and Gas Pumps and Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 12.5 | 31.6 |
Connect & Control Technologies [Member] | Vehicle Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Connect & Control Technologies [Member] | Aerospace and Defense Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 92.9 | 276.6 |
Connect & Control Technologies [Member] | Rail Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Connect & Control Technologies [Member] | Industrial Components and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 60.6 | 179.8 |
Consolidation, Eliminations [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | (0.7) | (2.1) |
Consolidation, Eliminations [Member] | Industrial Pumps [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Consolidation, Eliminations [Member] | Oil and Gas Pumps and Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Consolidation, Eliminations [Member] | Vehicle Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | (0.1) |
Consolidation, Eliminations [Member] | Aerospace and Defense Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Consolidation, Eliminations [Member] | Rail Components [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 |
Consolidation, Eliminations [Member] | Industrial Components and Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (0.7) | $ (2) |
REVENUE Contract Assets and Lia
REVENUE Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Short-term contract asset (see Note 2) | $ 21.3 | $ 43.2 | $ 0 |
Current Contract Assets, Percentage Change from Prior Period | (50.70%) | ||
Contract with Customer, Asset, Net, Noncurrent | $ 0.7 | 0 | |
Noncurrent Contract Assets, Percentage Change from Prior Period | 100.00% | ||
Contract with Customer, Liability | $ (63) | (61.7) | |
Current Contract Liabilities, Percentage Change from Prior Period | 2.10% | ||
Net Contract Liabilities | $ (41) | $ (18.5) | |
Net Contract Liability, Change from Prior Year | $ (22.5) | ||
Net Contract Liability, Percentage Change from Prior Period | 121.60% |
REVENUE Revenue Textuals (Detai
REVENUE Revenue Textuals (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Net Contract Liability, Change from Prior Year | $ (22.5) | |
Net Contract Liability, Percentage Change from Prior Period | 121.60% | |
Capitalized Contract Cost, Net | $ 7 | $ 7 |
Contract with Customer, Liability, Revenue Recognized | 12.4 | 58.5 |
Capitalized Contract Cost, Amortization | 0.2 | 0.6 |
Long-term Contract with Customer [Member] | ||
Revenue, Remaining Performance Obligation, Amount | 38.8 | 38.8 |
Long-term Contract with Customer [Member] | Minimum [Member] | ||
Revenue, Remaining Performance Obligation, Amount | 8 | 8 |
Long-term Contract with Customer [Member] | Maximum [Member] | ||
Revenue, Remaining Performance Obligation, Amount | $ 12 | $ 12 |
Revenue on Service and Repair Contracts [Member] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | 3.00% |
RESTRUCTURING ACTIONS Restruc_3
RESTRUCTURING ACTIONS Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0.9 | $ 4.7 | $ 3 | $ 9 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.8 | 4.6 | 2.4 | 7.3 |
Restructuring Asset Write-Off [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 0.1 | 0 | 0.1 |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.1 | 0 | 0.6 | 1.6 |
Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0 | 3.2 | 0 | 4.9 |
Motion Technologies [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.4 | 0.5 | 1.7 | 1.3 |
Connect & Control Technologies [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.5 | 1.6 | 1.3 | 2.8 |
Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ (0.6) | $ 0 | $ 0 |
RESTRUCTURING ACTIONS Restruc_4
RESTRUCTURING ACTIONS Restructuring Accrual Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | $ 8.9 | $ 14.6 | ||
Restructuring costs | $ 0.9 | $ 4.7 | 3 | 9 |
Payments for Restructuring | (5.9) | (13.8) | ||
Asset Write-Offs | 0 | 0.1 | ||
Restructuring Reserve, Translation Adjustment | 0.8 | 1.4 | ||
Restructuring Reserve - Ending Balance | 6.8 | 11.1 | 6.8 | 11.1 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.8 | 4.6 | 2.4 | 7.3 |
Restructuring Reserve - Ending Balance | 6 | 9.9 | 6 | 9.9 |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.1 | 0 | 0.6 | 1.6 |
Restructuring Reserve - Ending Balance | $ 0.8 | $ 1.2 | $ 0.8 | $ 1.2 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Income tax expense | $ 25.9 | $ 40.6 | $ 42.4 | $ 60.3 | |
Effective income tax rate | 18.90% | 31.80% | 13.10% | 25.00% | |
Change to Provisional One-Time US Tax Expense on Post 1986 Foreign Earnings | $ 3.1 | ||||
One Time Provisional US Tax Expense on Post 1986 Foreign Earnings | 54.9 | $ 58 | |||
Existing Post 1986 Foreign Earnings Subject to One Time US Tax | 975 | ||||
Write-Off of Deferred Tax Assets Relating to Officer Compensation | 1.7 | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 10 | 10 | |||
German Deferred Tax Assets [Member] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 23.5 |
EARNINGS PER SHARE DATA - Basic
EARNINGS PER SHARE DATA - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Weighted average common shares – basic | 87.6 | 88 | 87.7 | 88.3 |
Add: Dilutive impact of outstanding equity awards | 1.1 | 0.7 | 1 | 0.7 |
Diluted weighted average common shares outstanding | 88.7 | 88.7 | 88.7 | 89 |
EARNINGS PER SHARE DATA - Numbe
EARNINGS PER SHARE DATA - Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings (Loss) (Detail) - $ / shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of PSU Awards Excluded from Diluted Shares Outstanding | 0 | 0.2 | 0.2 | |
Anti-dilutive stock options | 0.2 | 0.3 | 0 | 0.4 |
Average exercise price | $ 42.40 | $ 42.41 | ||
Minimum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Years of expiration | 2,024 | |||
Maximum [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Years of expiration | 2,025 |
RECEIVABLES, NET - (Detail)
RECEIVABLES, NET - (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable (See Note 2) | $ 557.9 | $ 601.4 |
Notes receivable | 5.7 | 3.9 |
Other | 17.5 | 40.4 |
Receivables, gross | 581.1 | 645.7 |
Less: Allowance for doubtful accounts | (18.2) | (16.1) |
Receivables, net | $ 562.9 | $ 629.6 |
INVENTORIES, NET - Components o
INVENTORIES, NET - Components of Inventories, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 63.9 | $ 55.9 |
Work in process | 72.4 | 54.8 |
Raw materials | 214.9 | 184.4 |
Inventoried costs related to long-term contracts | 40.2 | 38.1 |
Total inventory before progress payments | 391.4 | 333.2 |
Less: Progress payments (see Note 2) | 0 | (21.3) |
Inventories, net | $ 391.4 | $ 311.9 |
OTHER CURRENT AND NON-CURRENT_3
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Asbestos-related assets | $ 67.1 | $ 64.7 | $ 64.7 | |
Advance payments and other prepaid expenses | 43.4 | 50.9 | ||
Short-term contract asset (see Note 2) | 21.3 | $ 43.2 | 0 | |
Prepaid income taxes | 18.8 | 30.3 | ||
Other | 1.2 | 1.5 | ||
Other current assets | 151.8 | 147.4 | ||
Other employee benefit-related assets | 118.8 | 111.3 | ||
Capitalized software costs | 35.2 | 41.9 | ||
Environmental-related assets | 23.3 | 24.5 | ||
Equity method investments | 8 | 6.7 | ||
Other | 20.5 | 18.5 | ||
Other non-current assets | $ 205.8 | $ 202.9 |
PLANT, PROPERTY AND EQUIPMENT_3
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 27.8 | $ 28.7 |
Machinery and equipment | 1,049.7 | 1,039.9 |
Buildings and improvements | 266 | 262.5 |
Furniture, fixtures and office equipment | 73 | 74.5 |
Construction work in progress | 48.2 | 58.4 |
Other | 10.5 | 10.9 |
Plant, property and equipment, gross | 1,475.2 | 1,474.9 |
Less: Accumulated depreciation | (974.6) | (953.2) |
Plant, property and equipment, net | $ 500.6 | $ 521.7 |
PLANT, PROPERTY AND EQUIPMENT_4
PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 20.7 | $ 19.7 | $ 62.4 | $ 57.2 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) $ in Millions | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | $ 886.8 |
Goodwill, Purchase Accounting Adjustments | 3.3 |
Foreign exchange translation | (10.6) |
Goodwill - Ending Balance | 879.5 |
Industrial Process [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 324.5 |
Goodwill, Purchase Accounting Adjustments | 0 |
Foreign exchange translation | (6.5) |
Goodwill - Ending Balance | 318 |
Motion Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 295.6 |
Goodwill, Purchase Accounting Adjustments | 3.3 |
Foreign exchange translation | (3.2) |
Goodwill - Ending Balance | 295.7 |
Connect & Control Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 266.7 |
Goodwill, Purchase Accounting Adjustments | 0 |
Foreign exchange translation | (0.9) |
Goodwill - Ending Balance | $ 265.8 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Other Intangible Assets (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | $ 230.9 | $ 234.1 |
Indefinite-lived intangible assets, Gross/Net Carrying Amount | 27.3 | 27.5 |
Other Intangible Assets, Gross Carrying Amount | 258.2 | 261.6 |
Accumulated Amortization | (117.2) | (105.4) |
Finite-live intangible asset, net of accumulated amortization | 113.7 | 128.7 |
Other intangible assets, net | 141 | 156.2 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Customer Relationships, Gross Carrying Amount | 164.5 | 166.2 |
Accumulated Amortization | (83.2) | (74.4) |
Finite-live intangible asset, net of accumulated amortization | 81.3 | 91.8 |
Proprietary Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Proprietary Technology, Gross Carrying Amount | 53.8 | 54.4 |
Accumulated Amortization | (24.7) | (21.8) |
Finite-live intangible asset, net of accumulated amortization | 29.1 | 32.6 |
Patents and other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Other, Gross Carrying Amount | 12.6 | 13.5 |
Accumulated Amortization | (9.3) | (9.2) |
Finite-live intangible asset, net of accumulated amortization | $ 3.3 | $ 4.3 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Intangibles Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Amortization of Intangible Assets | $ 4.4 | $ 5.2 | $ 13.3 | $ 14.4 |
ACCRUED AND OTHER CURRENT LIA_3
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Payables and Accruals [Abstract] | |||
Compensation and other employee-related benefits | $ 146.7 | $ 147.2 | |
Contract liabilities and other customer-related liabilities (see Note 2) | 84.4 | 45.5 | |
Asbestos-related liabilities | 73.3 | 77.1 | $ 77.4 |
Accrued income taxes and other tax-related liabilities | 39.5 | 36.1 | |
Environmental liabilities and other legal matters | 22.4 | 22.8 | |
Accrued warranty costs | 16.4 | 17 | |
Other accrued liabilities | 34.2 | 38.7 | |
Accrued liabilities | 416.9 | 384.4 | |
Environmental liabilities | 54.5 | 63.6 | |
Compensation and other employee-related benefits | 35.6 | 36.4 | |
Deferred income taxes and other tax-related accruals | 26.1 | 19.3 | |
Other | 49.3 | 56.3 | |
Other non-current liabilities | $ 165.5 | $ 175.6 |
DEBT Debt (Details)
DEBT Debt (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Debt [Line Items] | ||
Commercial paper | $ 144.9 | $ 162.4 |
Current maturities of long-term debt and capital leases | 1.4 | 1.2 |
Short-term loans and current maturities of long-term debt | 146.3 | 163.6 |
Long-term debt and capital leases | 9.9 | 8.3 |
Total debt and capital leases | $ 156.2 | $ 171.9 |
Commercial Paper [Member] | ||
Debt [Line Items] | ||
Weighted Average Interest Rate | (0.075%) | 2.09% |
POSTRETIREMENT BENEFIT PLANS -
POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | $ 0.6 | $ 1 | $ 1.8 | $ 2.6 | ||
Interest cost | 4 | 4.1 | 11.8 | 12.4 | ||
Expected return on plan assets(a) | (4.4) | (4) | [1] | (11.4) | (11.7) | [1] |
Amortization of prior service cost (benefit) | (1.1) | (1.2) | (3.3) | (3.6) | ||
Amortization of net actuarial loss | 2.4 | 3.2 | 7.6 | 8.8 | ||
Net Periodic Benefit Cost | 1.5 | 3.1 | 6.5 | 8.5 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (1.4) | (3.7) | (1.4) | (3.7) | ||
Total net periodic benefit cost | 2.9 | 6.8 | 7.9 | 12.2 | ||
Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 0.4 | 0.8 | 1.2 | 2 | ||
Interest cost | 3 | 3 | 8.6 | 9 | ||
Expected return on plan assets(a) | (4.4) | (3.9) | (11.2) | (11.4) | ||
Amortization of prior service cost (benefit) | 0.2 | 0.2 | 0.6 | 0.7 | ||
Amortization of net actuarial loss | 1.5 | 2.1 | 4.5 | 5.6 | ||
Net Periodic Benefit Cost | 0.7 | 2.2 | 3.7 | 5.9 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (1.4) | (3.7) | (1.4) | (3.7) | ||
Total net periodic benefit cost | 2.1 | 5.9 | 5.1 | 9.6 | ||
Other Postretirement Benefits Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service cost | 0.2 | 0.2 | 0.6 | 0.6 | ||
Interest cost | 1 | 1.1 | 3.2 | 3.4 | ||
Expected return on plan assets(a) | 0 | (0.1) | (0.2) | (0.3) | ||
Amortization of prior service cost (benefit) | (1.3) | (1.4) | (3.9) | (4.3) | ||
Amortization of net actuarial loss | 0.9 | 1.1 | 3.1 | 3.2 | ||
Net Periodic Benefit Cost | 0.8 | 0.9 | 2.8 | 2.6 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0 | 0 | 0 | ||
Total net periodic benefit cost | $ 0.8 | $ 0.9 | $ 2.8 | $ 2.6 | ||
[1] | (a) Plan administrative expenses of $0.7 and $2.3 for the three and nine months ended September 30, 2017 |
POSTRETIREMENT BENEFIT PLANS Po
POSTRETIREMENT BENEFIT PLANS Postretirement Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan, Plan Assets, Administration Expense | $ 0.7 | $ 2.3 | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 1.4 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 3.7 | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 9.7 | 14.3 | ||
Defined Benefit Plan, Employer Discretionary Contribution Amount | 5 | |||
Reclassification of Postretirement Costs from AOCI, Net of Tax | $ 2.1 | $ 3.6 | 4.3 | $ 5.9 |
Minimum [Member] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | 4 | 4 | ||
Maximum [Member] | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year | $ 6 | $ 6 |
LONG-TERM INCENTIVE EMPLOYEE _3
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Share-based compensation expense, equity-based awards | $ 6.7 | $ 5.2 | $ 16.9 | $ 12.5 |
Share-based compensation expense, liability-based awards | 0.9 | 0.8 | 1.7 | 1.7 |
Total share-based compensation expense in operating income (loss) | $ 7.6 | $ 6 | $ 18.6 | $ 14.2 |
LONG-TERM INCENTIVE EMPLOYEE _4
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options exercised | 0.2 | 0.3 |
Proceeds from the exercise of stock options | $ 5.8 | $ 6.7 |
Equity Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 20.2 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 6 days | |
Liability Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 3.3 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 24 days | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vested during period | 0.2 | 0.2 |
Performance Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vested during period | 0.1 | 0 |
LONG-TERM INCENTIVE EMPLOYEE _5
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) shares in Millions | 9 Months Ended |
Sep. 30, 2018$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.3 |
Grant Date Fair Value | $ / shares | $ 53.26 |
Performance Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.1 |
Grant Date Fair Value | $ / shares | $ 57.81 |
CAPITAL STOCK - Additional Info
CAPITAL STOCK - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 9 Months Ended | 143 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares repurchased under settlement of employee tax withholding obligations | 0.1 | 0.1 | |
Shares repurchased aggregate value under settlement of employee tax withholding obligations | $ 5.8 | $ 2.9 | |
2006 Share Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program | $ 1,000 | $ 1,000 | |
Repurchase of shares of common stock | 1 | 0.8 | 22.1 |
Aggregate cost of repurchase | $ 50 | $ 30 | $ 909.4 |
COMMITMENTS AND CONTINGENCIES R
COMMITMENTS AND CONTINGENCIES Rollforward of Asbestos Claims (Detail) - Asbestos Issue [Member] Claim in Thousands | 9 Months Ended |
Sep. 30, 2018Claim | |
Asbestos Claims [Rollforward] | |
Pending claims – Beginning | 26 |
New claims | 3 |
Settlements | (1) |
Dismissals | (3) |
Pending claims – Ending | 25 |
COMMITMENTS AND CONTINGENCIES S
COMMITMENTS AND CONTINGENCIES Summary of Net Asbestos Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 13.4 | $ 13.6 | $ 39.3 | $ 43.4 |
Asbestos Related Costs (Benefit), Annual Remeasurement | 7.2 | (76.4) | 7.2 | (76.4) |
Asbestos Related Costs (Benefit), Settlement Agreement | (24.9) | 0 | (57) | 0 |
Asbestos-related benefit, net | (4.3) | $ (62.8) | (10.5) | (33) |
Liability [Member] | ||||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 48.5 | 51.1 | ||
Asbestos Related Costs (Benefit), Annual Remeasurement | $ (8.6) | (8.6) | (66.4) | |
Asbestos Related Costs (Benefit), Settlement Agreement | $ 0 | $ 0 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES Roll Forward of Asbestos Liability and Related Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Net Asbestos Liability Rollforward [Line Items] | |||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | $ (508.5) | $ (573.7) | |||
Asbestos Related Costs, Provision to Maintain 10-Year Forecast Period | $ 13.4 | $ 13.6 | 39.3 | 43.4 | |
Asbestos Related (Benefit) Costs, Annual Remeasurement | 7.2 | (76.4) | 7.2 | (76.4) | |
Gain From Asbestos Insurance Settlement Agreement | (24.9) | 0 | (57) | 0 | |
Cash Payments | (42.3) | (39.5) | |||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | (455.7) | (501.2) | (455.7) | (501.2) | |
Asbestos-related liabilities Current | 73.3 | 77.4 | 73.3 | 77.4 | $ 77.1 |
Asbestos-related liabilities Non-Current | 771.8 | 798.1 | 771.8 | 798.1 | 800.1 |
Asbestos-related assets Current | 67.1 | 64.7 | 67.1 | 64.7 | 64.7 |
Asbestos-related assets Non-Current | 322.3 | 309.6 | 322.3 | 309.6 | $ 304 |
Liability [Member] | |||||
Net Asbestos Liability Rollforward [Line Items] | |||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | (877.2) | (954.3) | |||
Asbestos Related Costs, Provision to Maintain 10-Year Forecast Period | 48.5 | 51.1 | |||
Asbestos Related (Benefit) Costs, Annual Remeasurement | (8.6) | (8.6) | (66.4) | ||
Gain From Asbestos Insurance Settlement Agreement | 0 | 0 | |||
Cash Payments | (72) | (63.5) | |||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | (845.1) | (875.5) | (845.1) | (875.5) | |
Assets [Member] | |||||
Net Asbestos Liability Rollforward [Line Items] | |||||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | 368.7 | 380.6 | |||
Asbestos Related Costs, Provision to Maintain 10-Year Forecast Period | (9.2) | (7.7) | |||
Asbestos Related (Benefit) Costs, Annual Remeasurement | 15.8 | 15.8 | (10) | ||
Gain From Asbestos Insurance Settlement Agreement | (57) | 0 | |||
Cash Payments | 29.7 | 24 | |||
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | $ 389.4 | $ 374.3 | $ 389.4 | $ 374.3 |
COMMITMENTS AND CONTINGENCIES A
COMMITMENTS AND CONTINGENCIES Asbestos Matters Textuals (Details) Claim in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($)Claim | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Claim | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)Claim | Dec. 31, 2016USD ($) | |
Asbestos Related Contingencies [Line Items] | ||||||
Asbestos Liability Measurement Periods for Claims Pending and Estimated to be Filed | 10 years | |||||
Asbestos Related Costs, Provision to Maintain 10-Year Forecast Period | $ 13.4 | $ 13.6 | $ 39.3 | $ 43.4 | ||
Gain From Asbestos Insurance Settlement Agreement | 24.9 | 0 | 57 | 0 | ||
Asbestos Liability And Related Assets Net Current And Noncurrent | 455.7 | 501.2 | 455.7 | 501.2 | $ 508.5 | $ 573.7 |
Asbestos Related (Benefit) Costs, Annual Remeasurement | $ 7.2 | (76.4) | $ 7.2 | (76.4) | ||
Asbestos Issue [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Pending Asbestos Claims | Claim | 25 | 25 | 26 | |||
Liability [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Asbestos Related Costs, Provision to Maintain 10-Year Forecast Period | $ 48.5 | 51.1 | ||||
Gain From Asbestos Insurance Settlement Agreement | 0 | 0 | ||||
Asbestos Liability And Related Assets Net Current And Noncurrent | $ 845.1 | 875.5 | 845.1 | 875.5 | $ 877.2 | 954.3 |
Asbestos Related (Benefit) Costs, Annual Remeasurement | (8.6) | (8.6) | (66.4) | |||
Assets [Member] | ||||||
Asbestos Related Contingencies [Line Items] | ||||||
Asbestos Related Costs, Provision to Maintain 10-Year Forecast Period | (9.2) | (7.7) | ||||
Gain From Asbestos Insurance Settlement Agreement | 57 | 0 | ||||
Asbestos Liability And Related Assets Net Current And Noncurrent | (389.4) | $ (374.3) | (389.4) | (374.3) | $ (368.7) | $ (380.6) |
Asbestos Related (Benefit) Costs, Annual Remeasurement | $ 15.8 | $ 15.8 | $ (10) |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES Rollforward of Environmental Liability and Related Assets (Detail) - Liability [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Loss Contingency Accrual [Roll Forward] | ||
Environmental liability - Beginning balance | $ 73.9 | $ 76.6 |
Accruals added during the period for new matters | 2 | 0 |
Net Cash Activity | (14.6) | (7.4) |
Foreign exchange translation | 0.1 | 0.1 |
Environmental liability - Ending balance | 64.8 | 71.7 |
Continuing Operations [Member] | ||
Loss Contingency Accrual [Roll Forward] | ||
Changes In Pre-Existing Environmental Accruals | $ 3.4 | $ 2.4 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES Range of Environmental Liability and Number of Active Sites (Details) $ in Millions | Sep. 30, 2018USD ($)site | Dec. 31, 2017USD ($) |
Site Contingency [Line Items] | ||
Environmental-related assets | $ 23.3 | $ 24.5 |
Environmental Related Matters [Member] | ||
Site Contingency [Line Items] | ||
Number Of Active Environmental Investigation And Remediation Sites | site | 32 | |
Maximum [Member] | Environmental Related Matters [Member] | ||
Site Contingency [Line Items] | ||
Loss Contingency, Range of Possible Loss, Maximum | $ 115.4 |
COMMITMENTS AND CONTINGENCIES O
COMMITMENTS AND CONTINGENCIES Other Matters (Details) $ in Millions | Sep. 30, 2018USD ($) |
Unfavorable Regulatory Action [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Estimate of Possible Loss | $ 5 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Jan. 26, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 879.5 | $ 886.8 | |
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 | 86 | ||
Other intangible assets | 9.9 | ||
Other assets | 5.5 | ||
Accounts payable and accrued liabilities | (15.2) | ||
Postretirement liabilities | (4.2) | ||
Other liabilities | (6.5) | ||
Net assets acquired | $ 123.1 |
ACQUISITIONS Acquisitions Textu
ACQUISITIONS Acquisitions Textuals (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Jan. 26, 2017 | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 113.7 | |||
Goodwill | $ 879.5 | $ 886.8 | |||
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, Net of Cash Acquired | $ 123.1 | ||||
Revenue of Acquired Entity for Last Annual Period | $ 72 | ||||
Goodwill | $ 86 |