Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'PARK OHIO HOLDINGS CORP | ' | ' |
Entity Central Index Key | '0000076282 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $289,030,000 |
Entity Common Stock, Shares Outstanding | ' | 12,430,446 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $55.20 | $44.40 | [1] |
Accounts receivable, less allowances for doubtful accounts of $3.7 million at December 31, 2013 and $3.5 million at December 31, 2012 | 165.7 | 160.4 | [1] |
Inventories, net | 221.4 | 215.6 | [1] |
Deferred tax assets | 25.2 | 19.8 | [1] |
Unbilled contract revenue | 8.7 | 1.4 | [1] |
Other current assets | 20.1 | 23.6 | [1] |
Total current assets | 496.3 | 465.2 | [1] |
Net property, plant and equipment | 115.4 | 100 | [1] |
Goodwill | 60.4 | 49.7 | [1] |
Intangible assets, net | 66.2 | 49.6 | [1] |
Other long-term assets | 80.4 | 62.1 | [1] |
Total assets | 818.7 | 726.6 | [1] |
Current liabilities: | ' | ' | |
Trade accounts payable | 112 | 101.8 | [1] |
Accrued expenses and other | 79.9 | 83.6 | [1] |
Current portion of long-term debt | 4.4 | 4.4 | [1] |
Current portion of other postretirement benefits | 1.7 | 1.9 | [1] |
Total current liabilities | 198 | 191.7 | [1] |
Long-term liabilities, less current portion: | ' | ' | |
Senior Notes | 250 | 250 | [1] |
Credit facility | 126.2 | 120.6 | [1] |
Other long-term debt | 3 | 3.6 | [1] |
Deferred tax liabilities | 45.3 | 31.5 | [1] |
Other postretirement benefits and other long-term liabilities | 32.2 | 27.4 | [1] |
Total long-term liabilities | 456.7 | 433.1 | [1] |
Capital stock, par value $1 a share | ' | ' | |
Serial preferred stock: Authorized -- 632,470 shares: Issued and outstanding -- none | 0 | 0 | [1] |
Common stock: Authorized - 40,000,000 shares; Issued - 14,364,239 shares in 2013 and 14,109,255 in 2012 | 14.4 | 14.1 | [1] |
Additional paid-in capital | 82.4 | 76.9 | [1] |
Retained earnings | 85.6 | 42.2 | [1] |
Treasury stock, at cost, 1,934,959 shares in 2013 and 1,872,265 shares in 2012 | -26.8 | -24.6 | [1] |
Accumulated other comprehensive income (loss) | 3.4 | -6.8 | [1] |
Total Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 159 | 101.8 | [1] |
Noncontrolling interest | 5 | 0 | [1] |
Total equity | 164 | 101.8 | [1] |
Total liabilities and shareholders' equity | $818.70 | $726.60 | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $3.70 | $3.50 |
Capital stock, par value (in dollars per share) | $1 | $1 |
Serial preferred stock, shares authorized (in shares) | 632,470 | 632,470 |
Serial preferred stock, shares issued (in shares) | 0 | 0 |
Serial preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 14,364,239 | 14,109,255 |
Treasury stock, shares (in shares) | 1,934,959 | 1,872,265 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Income Statement [Abstract] | ' | ' | ' | |||
Net sales | $1,203.20 | [1] | $1,128.20 | [1] | $961.40 | [1] |
Cost of sales | 992.2 | 920.9 | [1] | 793.7 | [1] | |
Gross profit | 211 | 207.3 | [1] | 167.7 | [1] | |
Selling, general and administrative expenses | 119.3 | 113.4 | [1] | 102.2 | [1] | |
Restructuring and asset impairment charges | 0 | [1] | 0 | [1] | 5.4 | [1] |
Litigation judgment and settlement costs | 5.2 | [1] | 13 | [1] | 0 | [1] |
Operating income | 86.5 | 80.9 | [1] | 60.1 | [1] | |
Gain on acquisition of business | -0.6 | [1] | 0 | [1] | 0 | [1] |
Interest expense | 26.8 | [1] | 26.4 | [1] | 32.2 | [1] |
Income from continuing operations before income taxes | 60.3 | [1] | 54.5 | [1] | 27.9 | [1] |
Income tax expense (benefit) | 19.4 | 20.3 | [1] | -3.8 | [1] | |
Net income from continuing operations | 40.9 | 34.2 | [1] | 31.7 | [1] | |
Income (loss) from discontinued operations, net of taxes | 3 | -2.4 | [1] | -2.3 | [1] | |
Net income | 43.9 | 31.8 | [1] | 29.4 | [1] | |
Net income attributable to noncontrolling interest | -0.5 | 0 | [1] | 0 | [1] | |
Net income attributable to ParkOhio common shareholders | $43.40 | $31.80 | [1] | $29.40 | [1] | |
Earnings (loss) per common share attributable to ParkOhio common shareholders - Basic: | ' | ' | ' | |||
Continuing operations (in dollars per share) | $3.40 | $2.87 | [1] | $2.74 | [1] | |
Discontinued operations (in dollars per share) | $0.25 | ($0.20) | [1] | ($0.20) | [1] | |
Total (in dollars per share) | $3.65 | $2.67 | [1] | $2.54 | [1] | |
Earnings (loss) per common share attributable to ParkOhio common shareholders - Diluted: | ' | ' | ' | |||
Continuing operations (in dollars per share) | $3.31 | $2.82 | [1] | $2.64 | [1] | |
Discontinued operations (in dollars per share) | $0.25 | ($0.20) | [1] | ($0.19) | [1] | |
Total (in dollars per share) | $3.56 | $2.62 | [1] | $2.45 | [1] | |
Weighted-average shares used to compute earnings per share: | ' | ' | ' | |||
Basic (in shares) | 11,936,772 | 11,920,593 | [1] | 11,579,819 | [1] | |
Diluted (in shares) | 12,232,165 | 12,116,429 | [1] | 11,998,861 | [1] | |
[1] | Adjusted to reflect the discontinued operations. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ||
Net income | $43.90 | $31.80 | [1] | $29.40 | [1] |
Other comprehensive income (loss): | ' | ' | ' | ||
Foreign currency translation (loss) gain | -2.6 | 0.6 | -1.4 | ||
Pension and postretirement benefit adjustments, net of tax | 12.8 | 1 | -9.4 | ||
Total other comprehensive income (loss) | 10.2 | 1.6 | -10.8 | ||
Total comprehensive income, net of tax | 54.1 | 33.4 | 18.6 | ||
Comprehensive income attributable to noncontrolling interest | -0.5 | 0 | 0 | ||
Comprehensive income attributable to ParkOhio common shareholders | $53.60 | $33.40 | $18.60 | ||
[1] | Adjusted to reflect the discontinued operations. |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained (Deficit) Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | |
In Millions, except Share data | ||||||||
Beginning balance at Dec. 31, 2010 | $46.40 | $13.40 | $68.10 | ($19) | ($18.50) | $2.40 | $0 | |
Beginning balance (in shares) at Dec. 31, 2010 | ' | 13,396,674 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | 18.6 | ' | ' | 29.4 | ' | -10.8 | ' | |
Amortization of restricted stock | 2 | ' | 2 | ' | ' | ' | ' | |
Restricted stock awards (in shares) | ' | 194,000 | ' | ' | ' | ' | ' | |
Restricted stock awards | 0 | 0.2 | -0.2 | ' | ' | ' | ' | |
Restricted stock cancelled (in shares) | ' | -200 | ' | ' | ' | ' | ' | |
Restricted stock cancelled | 0 | 0 | 0 | ' | ' | ' | ' | |
Purchase of treasury stock | -2.1 | ' | ' | ' | -2.1 | ' | ' | |
Exercise of stock options (in shares) | ' | 223,300 | ' | ' | ' | ' | ' | |
Exercise of stock options | 0.5 | 0.2 | 0.3 | ' | ' | ' | ' | |
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 0.1 | 0 | 0.1 | ' | ' | ' | ' | |
Ending balance at Dec. 31, 2011 | 65.5 | 13.8 | 70.3 | 10.4 | -20.6 | -8.4 | ' | |
Ending balance (in shares) at Dec. 31, 2011 | ' | 13,813,774 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | 33.4 | ' | ' | 31.8 | ' | 1.6 | ' | |
Amortization of restricted stock | 2.6 | ' | 2.6 | ' | ' | ' | ' | |
Restricted stock awards (in shares) | ' | 258,000 | ' | ' | ' | ' | ' | |
Restricted stock awards | 0 | 0.3 | -0.3 | ' | ' | ' | ' | |
Common stock award (in shares) | ' | 31,606 | ' | ' | ' | ' | ' | |
Common stock award | 0.6 | 0 | 0.6 | ' | ' | ' | ' | |
Restricted stock cancelled (in shares) | ' | -32,375 | ' | ' | ' | ' | ' | |
Restricted stock cancelled | 0 | 0 | 0 | ' | ' | ' | ' | |
Purchase of treasury stock | -4 | ' | ' | ' | -4 | ' | ' | |
Exercise of stock options (in shares) | ' | 38,250 | ' | ' | ' | ' | ' | |
Exercise of stock options | 0.5 | 0 | 0.5 | ' | ' | ' | ' | |
Income tax effect of share-based compensation exercises and vesting | 0.4 | ' | 0.4 | ' | ' | ' | ' | |
Income tax effect of suspended benefits from share-based compensation | 2.8 | ' | 2.8 | ' | ' | ' | ' | |
Ending balance at Dec. 31, 2012 | 101.8 | [1] | 14.1 | 76.9 | 42.2 | -24.6 | -6.8 | 0 |
Ending balance (in shares) at Dec. 31, 2012 | ' | 14,109,255 | ' | ' | ' | ' | ' | |
Other comprehensive income (loss) | 54.1 | ' | ' | 43.4 | ' | 10.2 | 0.5 | |
Restricted stock awards (in shares) | ' | 204,650 | ' | ' | ' | ' | ' | |
Restricted stock awards | 0 | 0.2 | -0.2 | ' | ' | ' | ' | |
Restricted stock cancelled (in shares) | ' | -4,000 | ' | ' | ' | ' | ' | |
Restricted stock cancelled | 0 | 0 | 0 | ' | ' | ' | ' | |
Performance shares issued (in shares) | ' | 14,000 | ' | ' | ' | ' | ' | |
Performance shares issued | 0.4 | 0 | 0.4 | ' | ' | ' | ' | |
Capital contribution from noncontrolling interest | 5 | ' | 0.5 | ' | ' | ' | 4.5 | |
Purchase of treasury stock | -2.2 | ' | ' | ' | -2.2 | ' | ' | |
Exercise of stock options (in shares) | 40,334 | 40,334 | ' | ' | ' | ' | ' | |
Exercise of stock options | 0.4 | 0.1 | 0.3 | ' | ' | ' | ' | |
Share-based compensation | 4.1 | ' | 4.1 | 0 | ' | ' | ' | |
Income tax effect of share-based compensation exercises and vesting | 0.4 | ' | 0.4 | ' | ' | ' | ' | |
Ending balance at Dec. 31, 2013 | $164 | $14.40 | $82.40 | $85.60 | ($26.80) | $3.40 | $5 | |
Ending balance (in shares) at Dec. 31, 2013 | ' | 14,364,239 | ' | ' | ' | ' | ' | |
[1] | Adjusted to reflect the discontinued operations. |
Consolidated_Statement_of_Shar1
Consolidated Statement of Shareholders' Equity (Parenthetical) (Treasury Stock) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Treasury Stock | ' | ' | ' |
Treasury Stock, Shares, Acquired | 62,694 | 198,339 | 114,930 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
OPERATING ACTIVITIES | ' | ' | ' | |||
Net income | $43.90 | $31.80 | [1] | $29.40 | [1] | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' | |||
Depreciation and amortization | 19.2 | 18 | 16.2 | |||
Debt extinguishment costs | 0 | 0.3 | 7.3 | |||
Restructuring and asset impairment charges | 0 | [1] | 0 | [1] | 5.4 | [1] |
Share-based compensation | 4.7 | 2.7 | 2.1 | |||
Gain on sale of business and assets | -6 | -0.2 | 0 | |||
Gain on acquisition of business | -0.6 | [1] | 0 | [1] | 0 | [1] |
Deferred income taxes | -2.3 | 7.5 | -12.8 | |||
Changes in operating assets and liabilities, excluding business acquisitions: | ' | ' | ' | |||
Accounts receivable | 8.5 | 9.8 | -13.5 | |||
Inventories and other current assets | -4.9 | 7.1 | -8.8 | |||
Accounts payable and accrued expenses | -7.5 | -21.4 | 18.1 | |||
Other | 5.3 | 0.3 | -7.5 | |||
Net cash provided by operating activities | 60.3 | 55.9 | 35.9 | |||
INVESTING ACTIVITIES | ' | ' | ' | |||
Purchases of property, plant and equipment | -30.1 | -29.6 | -12.7 | |||
Proceeds from sale and leaseback transactions | 7.4 | 5.9 | 0 | |||
Proceeds from sale of assets | 14.2 | 0.4 | 1.6 | |||
Business acquisitions, net of cash acquired | -45.8 | -97 | 0 | |||
Net cash used by investing activities | -54.3 | -120.3 | -11.1 | |||
FINANCING ACTIVITIES | ' | ' | ' | |||
Proceeds from term loans and other debt | 0 | 25.9 | 0 | |||
Payments on term loans and other debt | -4.2 | -3.7 | -37.6 | |||
Proceeds from revolving credit facility, net | 9.1 | 8.9 | 2.8 | |||
Bank debt issue costs | 0 | -0.9 | -1.1 | |||
Issuance of 8.125% senior notes due 2021, net of deferred financing costs | 0 | 0 | 245 | |||
Redemption of 8.375% senior subordinated notes due 2014 | 0 | 0 | -189.6 | |||
Issuance of common stock awards | 0.8 | 1.1 | 0.5 | |||
Income tax effect of suspended benefits from share-based compensation | 0 | 2.8 | 0 | |||
Income tax effect of share-based compensation exercises and vesting | 0.4 | 0.4 | 0 | |||
Purchase of treasury stock | -2.2 | -4 | -2.1 | |||
Net cash provided by financing activities | 3.9 | 30.5 | 17.9 | |||
Effect of exchange rate changes on cash | 0.9 | 0.3 | 0 | |||
Increase (decrease) in cash and cash equivalents | 10.8 | -33.6 | 42.7 | |||
Cash and cash equivalents at beginning of period | 44.4 | [1] | 78 | 35.3 | ||
Cash and cash equivalents at end of period | 55.2 | 44.4 | [1] | 78 | ||
Income taxes paid | 25 | 5.5 | 4.6 | |||
Interest paid | $24.80 | $23.80 | $27 | |||
[1] | Adjusted to reflect the discontinued operations. |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2013 |
Senior Notes 8.125% [Member] | ' |
Senior notes, interest rate | 8.13% |
Senior Notes 8.375% [Member] | ' |
Senior notes, interest rate | 8.38% |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Summary of Significant Accounting Policies | ' | ||||||||
Summary of Significant Accounting Policies | |||||||||
Consolidation and Basis of Presentation: The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. In the ordinary course of business, the Company leases certain real properties owned by related parties as described in Note 12. Transactions with related parties are in the ordinary course of business, are conducted on an arm’s-length basis, and are not material to the Company’s financial position, results of operations or cash flows. | |||||||||
On September 3, 2013, we sold all of the outstanding equity interests of a non-core business unit in the Supply Technologies segment for $8.5 million in cash, which resulted in a gain that is reflected within the income (loss) from discontinued operations, net of taxes, line of the consolidated statements of income. This business unit is a provider of high-quality machine to machine information technology solutions, products and services. The results of the business unit have been reported as discontinued operations in the financial statements. | |||||||||
Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |||||||||
Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value. | |||||||||
Major Classes of Inventories | December 31, 2013 | December 31, 2012 | |||||||
(In millions) | |||||||||
Finished goods | $ | 114.7 | $ | 113 | |||||
Work in process | 30.3 | 27.9 | |||||||
Raw materials and supplies | 76.4 | 74.7 | |||||||
Inventories, net | $ | 221.4 | $ | 215.6 | |||||
Other inventory items | |||||||||
Inventory reserves | $ | 28.4 | $ | 27.2 | |||||
Consigned Inventory | $ | 6.6 | $ | 6.6 | |||||
Property, Plant and Equipment: Property, plant and equipment are carried at cost. Additions and associated interest costs are capitalized and expenditures for repairs and maintenance are charged to operations. Depreciation of fixed assets is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 50 years for buildings, and one to 20 years for machinery and equipment. The Company reviews long-lived assets for impairment when events or changes in business conditions indicate that their full carrying value may not be recoverable. See Note 15. | |||||||||
The following table summarizes property, plant and equipment at December 31, 2013 and December 31, 2012: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property, plant and equipment: | |||||||||
Land and land improvements | $ | 6.5 | $ | 5.7 | |||||
Buildings | 58.2 | 55.8 | |||||||
Machinery and equipment | 261.5 | 245.2 | |||||||
Total property, plant and equipment | 326.2 | 306.7 | |||||||
Less accumulated depreciation | 210.8 | 206.7 | |||||||
Net property, plant and equipment | $ | 115.4 | $ | 100 | |||||
Impairment of Long-Lived Assets: We assess the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives, whenever events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future undiscounted cash flows to be generated by that asset, or, for identifiable intangibles with finite useful lives, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. We measure the amount of impairment of other long-lived assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair market value of the asset, which is generally determined, based on projected discounted future cash flows or appraised values. We classify long-lived assets to be disposed of other than by sale as held and used until they are disposed. | |||||||||
Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other” (“ASC 350”), the Company does not amortize goodwill or indefinite-lived intangible assets recorded in connection with business acquisitions. | |||||||||
Goodwill and indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. | |||||||||
Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets, compared to the fair value. In accordance with Accounting Standard Update (“ASU”) 2011-08, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. We early adopted ASU 2011-08 for our October 1, 2011 annual goodwill impairment test. | |||||||||
In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgments and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company-specific events and share price trends, and the assessment of whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. | |||||||||
If our qualitative assessment concludes that it is more likely than not that impairment exists then a quantitative assessment is required. In a quantitative assessment, we use an income approach and other valuation techniques to estimate the fair value of our reporting units. Absent an indication of fair value from a potential buyer or similar specific transactions, we believe that using this methodology provides reasonable estimates of a reporting unit’s fair value. The income approach is based on projected future debt-free cash flow that is discounted to present value using factors that consider the timing and risk of the future cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit’s expected long-term operating and cash flow performance. This approach also mitigates most of the impact of cyclical downturns that occur in the reporting unit’s industry. The income approach is based on a reporting unit’s projection of operating results and cash flows that is discounted using a weighted-average cost of capital. The projection is based upon our best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements based on management projections. There are inherent uncertainties, however, related to these factors and to our judgment in applying them to this analysis. Nonetheless, we believe that this method provides a reasonable approach to estimate the fair value of our reporting units. | |||||||||
The Company completed its annual goodwill impairment test for each year presented and confirmed no reporting unit was at risk of failing the impairment test for any periods presented herein. | |||||||||
Indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. In accordance with ASU 2011-08, an entity may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying value. When using a quantitative assessment, recoverability is measured by a comparison of the carrying amount to future undiscounted net cash flows to be generated which is estimated by management. Fair value is the basis for the measurement of any asset write-downs that are recorded. In conjunction with the recoverability analysis, management reviews the estimated remaining useful lives for appropriateness and considers adjusting the useful lives which may result in accelerated depreciation, which is included in cost of sales. Based on this quantitative analysis performed in 2012 and the qualitative factors analyzed in 2013, as mentioned above, management concluded that as of October 1, 2013, the indefinite-lived intangibles had fair values that exceeded their carrying values. As a result of this analysis, we concluded that no impairment existed. | |||||||||
Fair Values of Financial Instruments: Certain financial instruments are required to be recorded at fair value. The Company measures financial assets and liabilities at fair value in three levels of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: | |||||||||
Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. | |||||||||
Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |||||||||
Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | |||||||||
Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 9) approximate fair value at December 31, 2013 and December 31, 2012. The fair values of long-term debt and pension plan assets are disclosed in Note 9 and Note 13, respectively. | |||||||||
The Company has not changed its valuation techniques for measuring fair value during 2013 and there were no transfers between levels during the periods presented. | |||||||||
Income Taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and the tax bases of assets and liabilities and are measured using the current enacted tax rates. In determining these amounts, management determined the probability of realizing deferred tax assets, taking into consideration factors including historical operating results, cumulative earnings and losses, expectations of future earnings, taxable income and the extended period of time over which the postretirement benefits will be paid and accordingly records valuation allowances if, based on the weight of available evidence it is more likely than not that some portion or all of our deferred tax assets will not be realized as required by ASC 740, “Income Taxes” (“ASC 740”). | |||||||||
Stock-Based Compensation: The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period. | |||||||||
Additional information regarding our share-based compensation program is provided in Note 11. | |||||||||
Revenue Recognition: The Company recognizes revenue, other than from long-term contracts, when title is transferred to the customer, typically upon shipment. Revenue from long-term contracts (approximately 9% of consolidated revenue) is accounted for under the percentage of completion method, and recognized on the basis of the percentage each contract’s cost to date bears to the total estimated contract cost. Revenue earned on contracts in process that are in excess of billings, is classified in unbilled contract revenues in the accompanying consolidated balance sheet. Billings that are in excess of revenues earned on contracts in process are classified in accrued expenses in the accompanying balance sheet. | |||||||||
Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. | |||||||||
Shipping and Handling Costs: All shipping and handling costs are included in cost of products sold in the Consolidated Statements of Income. | |||||||||
Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable are recorded at net realizable value. Accounts receivable are reduced by an allowance for amounts that may become uncollectable in the future. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history. During 2013 and 2012, we sold approximately $75.4 million and $76.8 million, respectively, of accounts receivable to mitigate accounts receivable concentration risk and to provide additional financing capacity. In compliance with ASC 860, “Transfers and Servicing”, sales of accounts receivable are reflected as a reduction of accounts receivable in the Consolidated Balance Sheets and the proceeds are included in the cash flows from operating activities in the Consolidated Statements of Cash flows. In 2013 and 2012, an expense in the amount of $0.4 million and $0.3 million, respectively, related to the discount on sale of accounts receivable is recorded in the Consolidated Statements of Income. | |||||||||
Concentration of Credit Risk: The Company sells its products to customers in diversified industries. The Company performs ongoing credit evaluations of its customers’ financial condition but does not require collateral to support customer receivables. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. As of December 31, 2013, the Company had uncollateralized receivables with four customers in the automotive industry, each with several locations, aggregating $24.2 million, which represented approximately 15% of the Company’s trade accounts receivable. During 2013, sales to these customers amounted to approximately $179.4 million, which represented approximately 15% of the Company’s net sales. | |||||||||
Environmental: The Company accrues environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Costs that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company records a liability when environmental assessments and/or remedial efforts are probable and can be reasonably estimated. The estimated liability of the Company is not reduced for possible recoveries from insurance carriers. | |||||||||
Legal Contingencies: We are involved in a variety of claims, suits, investigations and administrative proceedings with respect to commercial, premises liability, product liability, employment and environmental matters arising from the ordinary course of business. We accrue reserves for legal contingencies, on an undiscounted basis, when it is probable that we have incurred a liability and we can reasonably estimate an amount. When a single amount cannot be reasonably estimated, but the cost can be estimated within a range, we accrue the minimum amount in the range. Based upon facts and information currently available, we believe the amounts reserved are adequate for such pending matters. We monitor the development of legal proceedings on a regular basis and will adjust our reserves when, and to the extent, additional information becomes available. | |||||||||
Foreign Currency Translation: The functional currency for a majority of subsidiaries outside the United States is the local currency. Financial statements for these subsidiaries are translated into U.S. dollars at year-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. The resulting translation adjustments are recorded in accumulated comprehensive income (loss) in shareholders’ equity. | |||||||||
Weighted-Average Number of Shares Used in Computing Earnings Per Share: The following table sets forth the weighted-average number of shares used in the computation of earnings per share: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(In whole shares) | |||||||||
Weighted average basic shares outstanding | 11,936,772 | 11,920,593 | 11,579,819 | ||||||
Plus dilutive impact of employee stock options | 295,393 | 195,836 | 419,042 | ||||||
Weighted average diluted shares outstanding | 12,232,165 | 12,116,429 | 11,998,861 | ||||||
Earnings from continuing operations per common share is computed as net income from continuing operations less net income attributable to noncontrolling interests divided by the weighted average basic shares outstanding. Diluted earnings from continuing operations per common share is computed as net income from continuing operations less net income attributable to noncontrolling interests divided by the weighted average diluted shares outstanding. | |||||||||
Earnings (loss) from discontinued operations per common share is computed as income (loss) from discontinued operations, net of taxes divided by the weighted average basic shares outstanding. Diluted earnings (loss) from discontinued operations per common share is computed as income (loss) from discontinued operations, net of taxes divided by the weighted average diluted shares outstanding. | |||||||||
Total basic earnings per common share is computed as net income attributable to Park-Ohio common shareholders divided by the weighted average basic shares outstanding. Total diluted earnings per common share is computed as net income attributable to Park-Ohio common shareholders divided by the weighted average diluted shares outstanding. | |||||||||
Outstanding stock options with exercise prices greater than the average price of the common shares are anti-dilutive and are not included in the computation of diluted earnings per share. For the year ended December 31, 2013 and 2012, the anti-dilutive shares were insignificant. | |||||||||
Accounting Pronouncements Adopted | |||||||||
In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The updated standard affects the Company’s disclosures but has no impact on its results of operations, financial condition or liquidity. | |||||||||
Recent Accounting Pronouncements Not Yet Adopted | |||||||||
In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” which requires entities to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors plus additional amounts the reporting entity expects to pay on behalf of its co-obligors. Entities are also required to disclose the nature and amount of the obligation as well as other information about those obligations. This ASU is effective prospectively for reporting periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting this guidance. | |||||||||
In February 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” requiring reporting entities that no longer have a controlling financial interest in a subsidiary or group of assets that is considered a business within a foreign entity, to release the cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For equity method investments that are foreign entities, the partial sale requires a pro rata portion of the cumulative translation adjustment to be released into net income upon a partial sale of such an equity investment. However, for an equity method investment that is not a foreign entity, the release of the cumulative translation adjustment into net income is required only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the amendments in this update clarify that the sale of an investment in a foreign entity requiring release into net income the cumulative translation adjustment upon the occurrence of events that includes (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. This ASU is effective prospectively for reporting periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting this guidance. | |||||||||
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” to eliminate diversity in practice. This ASU requires that companies net their unrecognized tax benefits against all same-jurisdiction net operating losses or tax credit carryforwards that would be used to settle the position with a tax authority. This new guidance is effective prospectively for annual reporting periods beginning on or after December 15, 2013 and interim periods therein. The adoption of this ASU will not have a material effect on our consolidated financial statements because it aligns with our current presentation. | |||||||||
Reclassification: Certain amounts in the prior years' financial statements have been reclassified to conform to the current year presentation. |
Segments
Segments | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segments | ' | |||||||||||
Segments | ||||||||||||
On March 23, 2012, the Company completed the acquisition of Fluid Routing Solutions Holding Corp. (“FRS”), a leading manufacturer of automotive and industrial rubber and thermoplastic hose products and fuel filler and hydraulic fluid assemblies for the automotive and industrial industries. FRS expanded the Company’s sales of assembled components. | ||||||||||||
During the second quarter of 2012, as a result of the FRS acquisition, the Company realigned its segments in order to better align its business with the underlying markets and customers that the Company serves. In so doing, we realigned the following components with FRS to form the Assembly Components operating/reportable segment: Aluminum Products, Rubber Products (previously included in the former Manufactured Products operating/reportable segment) and Delo Screw Products (previously included in the Supply Technologies operating/reportable segment). The former Manufactured Products operating/reportable segment is now referred to as Engineered Products. The results of operations of FRS from the date of the acquisition through December 31, 2013 are included in the Assembly Components operating/reportable segment. The business segment results for the prior years have been reclassified to reflect these changes. The following is a description of our three operating/reportable segments. | ||||||||||||
The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides our customers with Total Supply Management™ services for a broad range of high-volume, specialty production components. Total Supply Management™ manages the efficiencies of every aspect of supplying production parts and materials to our customers’ manufacturing floor, from strategic planning to program implementation, and includes such services as engineering and design support, part usage and cost analysis, supplier selection, quality assurance, bar coding, product packaging and tracking, just-in-time and point-of-use delivery, electronic billing services and ongoing technical support. Assembly Components manufactures cast aluminum components, automotive and industrial rubber and thermoplastic products, fuel filler and hydraulic assemblies for automotive, agricultural equipment, construction equipment, heavy-duty truck and marine equipment industries. Assembly Components also provides value-added services such as design and engineering, machining and assembly. Engineered Products operates a diverse group of niche manufacturing businesses that design and manufacture a broad range of high quality products engineered for specific customer applications. | ||||||||||||
The Company primarily evaluates performance and allocates resources based on segment operating income as well as projected future performance. Segment operating income is defined as revenues less expenses identifiable to the product lines included within each segment. Segment operating income reconciles to consolidated income from continuing operations before income taxes by deducting corporate costs and other income or expense items that are not attributed to the segments and net interest expense. | ||||||||||||
Results by business segment were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
Adjusted (1) | Adjusted (1) | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Net sales: | ||||||||||||
Supply Technologies | $ | 471.9 | $ | 483.8 | $ | 481.4 | ||||||
Assembly Components | 412.8 | 304 | 157.8 | |||||||||
Engineered Products | 318.5 | 340.4 | 322.2 | |||||||||
$ | 1,203.20 | $ | 1,128.20 | $ | 961.4 | |||||||
Segment operating income: | ||||||||||||
Supply Technologies | $ | 35.9 | $ | 37.9 | $ | 35.1 | ||||||
Assembly Components | 31.8 | 19.9 | 1.4 | |||||||||
Engineered Products | 47.1 | 55 | 45.3 | |||||||||
Total segment operating income | 114.8 | 112.8 | 81.8 | |||||||||
Corporate costs | (23.1 | ) | (18.9 | ) | (16.3 | ) | ||||||
Restructuring and asset impairment charges | — | — | (5.4 | ) | ||||||||
Litigation judgment and settlement costs | (5.2 | ) | (13.0 | ) | — | |||||||
Gain on acquisition of business | 0.6 | — | — | |||||||||
Interest expense | (26.8 | ) | (26.4 | ) | (32.2 | ) | ||||||
Income from continuing operations before income taxes | $ | 60.3 | $ | 54.5 | $ | 27.9 | ||||||
(1) Adjusted to reflect the discontinued operations. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Identifiable assets: | ||||||||||||
Supply Technologies | $ | 241.7 | $ | 207 | $ | 225.3 | ||||||
Assembly Components | 276.7 | 230 | 73.1 | |||||||||
Engineered Products | 183.1 | 199.4 | 195.8 | |||||||||
General corporate | 117.2 | 90.2 | 120.6 | |||||||||
$ | 818.7 | $ | 726.6 | $ | 614.8 | |||||||
Depreciation and amortization expense: | ||||||||||||
Supply Technologies | $ | 3 | $ | 3.9 | $ | 4.6 | ||||||
Assembly Components | 11.6 | 9.5 | 7.2 | |||||||||
Engineered Products | 3.4 | 3.2 | 3.9 | |||||||||
General corporate | 1.2 | 1.4 | 0.5 | |||||||||
$ | 19.2 | $ | 18 | $ | 16.2 | |||||||
Capital expenditures: | ||||||||||||
Supply Technologies | $ | 3.8 | $ | 1.6 | $ | 1.3 | ||||||
Assembly Components | 21.5 | 22.1 | 7.7 | |||||||||
Engineered Products | 3.6 | 3.1 | 0.9 | |||||||||
General corporate | 1.2 | 2.8 | 2.8 | |||||||||
$ | 30.1 | $ | 29.6 | $ | 12.7 | |||||||
The percentage of net sales by product line included in each segment was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Supply Technologies: | ||||||||||||
Supply Technologies | 87 | % | 88 | % | 89 | % | ||||||
Engineered specialty products | 13 | % | 12 | % | 11 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Assembly Components: | ||||||||||||
Fluid routing | 54 | % | 50 | % | — | % | ||||||
Aluminum products | 37 | % | 39 | % | 81 | % | ||||||
Rubber and plastics | 7 | % | 9 | % | 15 | % | ||||||
Screw products | 2 | % | 2 | % | 4 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Engineered Products: | ||||||||||||
Industrial equipment business | 77 | % | 80 | % | 81 | % | ||||||
Forged and machined products | 23 | % | 20 | % | 19 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
The Company’s approximate percentage of net sales by geographic region was as follows: | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | 74 | % | 77 | % | 76 | % | ||||||
Canada | 8 | % | 8 | % | 5 | % | ||||||
Mexico | 5 | % | 4 | % | 3 | % | ||||||
Asia | 6 | % | 6 | % | 9 | % | ||||||
Europe | 5 | % | 4 | % | 5 | % | ||||||
Other | 2 | % | 1 | % | 2 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
The basis for attributing revenue to individual countries is final shipping destination. | ||||||||||||
At December 31, 2013, 2012 and 2011, approximately 77%, 81% and 68%, respectively, of the Company’s assets were maintained in the United States. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Acquisitions | ' | |||||||
Acquisitions | ||||||||
In November 2013, the Company acquired all the outstanding capital stock of QEF Global Limited ("QEF"). QEF is a provider of supply chain management solutions with four locations throughout Ireland, Scotland and England. QEF's sales for the year ended December 31, 2012 totaled approximately $14.0 million. | ||||||||
In October 2013, the Company acquired all of the outstanding capital stock of Henry Halstead Ltd. (“Henry Halstead”). Henry Halstead is a provider of supply chain management solutions throughout the United Kingdom and Ireland. For its fiscal year ended March 31, 2013, Henry Halstead generated net sales of approximately $24.0 million. | ||||||||
The Company paid $25.8 million in the aggregate for QEF and Henry Halstead, which are subject to insignificant deferred and contingent purchase price consideration, respectively. QEF and Henry Halstead are included in our Supply Technologies segment from their respective dates of acquisition. The acquisitions were accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price is allocated to QEF and Henry Halstead’s net tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values as of the respective effective dates of the acquisitions. Management's valuation of the fair value of tangible and intangible assets acquired and liabilities assumed are based on estimates and assumptions and are preliminary at December 31, 2013. The purchase price allocations are subject to further adjustment until all pertinent information regarding the property, plant and equipment, intangible assets, goodwill, other long-term liabilities and deferred income tax assets and liabilities acquired are fully evaluated by the Company and independent valuations are complete. Assuming these acquisitions had taken place at the beginning of 2012, results would not have been materially different. | ||||||||
During August 2013, the Company entered into an agreement to purchase certain assets and liabilities of a small business, which resulted in a pre-tax gain of $0.6 million during the third quarter of 2013. The small business is engaged in the business of designing, manufacturing, selling, distributing and installing various tube bending machines and related tooling, spare and replacement parts and ancillary services for commercial applications. The small business is included in our Engineered Products segment from the date of acquisition. The purchase price was not significant to the results of operations, financial condition or liquidity. | ||||||||
Effective April 26, 2013, the Company acquired certain assets and assumed specific liabilities relating to Bates Rubber (“Bates”) for a total purchase price of $20.8 million in cash. The acquisition was funded from borrowings under the revolving credit facility provided by the Credit Agreement. Bates is a leading manufacturer of extruded, formed and molded products and assemblies for the transportation and industrial markets. Bates’ production facilities are located in Tennessee. The financial results of Bates are included in the Company’s Assembly Components segment and had insignificant revenues and net income from the date acquired through December 31, 2013. The acquisition was accounted for under the acquisition method of accounting and the purchase price allocation is preliminary at December 31, 2013. Management's valuation of the fair value of tangible and intangible assets acquired and liabilities assumed are based on estimates and assumptions. The purchase price allocations are subject to further adjustment until all pertinent information regarding goodwill, other liabilities and deferred income tax assets and liabilities acquired are fully evaluated by the Company. Assuming these acquisitions had taken place at the beginning of 2012, results would not have been materially different. | ||||||||
On March 23, 2012, the Company completed the acquisition of FRS, a leading manufacturer of automotive and industrial rubber and thermoplastic hose products and fuel filler and hydraulic fluid assemblies, in an all cash transaction valued at $98.8 million. FRS products include fuel filler, hydraulic, and thermoplastic assemblies and several forms of manufactured rubber and thermoplastic hose, including bulk and formed fuel, power steering, transmission oil cooling, hydraulic and thermoplastic hose. FRS sells to automotive and industrial customers throughout North America, Europe and Asia. FRS has five production facilities located in Florida, Michigan, Ohio, Tennessee and the Czech Republic. FRS is included in the Company’s Assembly Components segment and had revenues of $152.4 million and net income of $7.1 million for the period from the date acquired through December 31, 2012. The Company funded the acquisition with cash of $40.0 million, a $25.0 million seven-year amortizing term loan provided by the Credit Agreement and secured by certain real estate and machinery and equipment of the Company and $33.8 million of borrowings under the revolving credit facility provided by the Credit Agreement. The acquisition was accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the total purchase price is allocated to FRS’ net tangible assets and intangible assets acquired and liabilities assumed based on their estimated fair values as of March 23, 2012, the effective date of the acquisition. Based on management’s valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions, the final purchase price is allocated as follows: | ||||||||
(In Millions) | ||||||||
Cash and cash equivalents | $ | 2.8 | ||||||
Accounts receivable | 30.9 | |||||||
Inventories | 12.4 | |||||||
Prepaid expenses and other current assets | 2.7 | |||||||
Property, plant and equipment | 30.2 | |||||||
Customer relationships | 29.4 | |||||||
Trademarks and trade name | 11.5 | |||||||
Other assets | 0.2 | |||||||
Accounts payable | (17.8 | ) | ||||||
Accrued expenses | (15.6 | ) | ||||||
Deferred tax liability | (26.4 | ) | ||||||
Other long-term liabilities | (0.8 | ) | ||||||
Goodwill | 39.3 | |||||||
Total purchase price | $ | 98.8 | ||||||
The following unaudited pro forma information is provided to present a summary of the combined results of the Company’s operations with FRS as if the acquisition had occurred on January 1, 2011. The unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed at the date indicated above. | ||||||||
Year Ended December 31, | ||||||||
2012 | 2011 | |||||||
(In millions) | ||||||||
Pro forma revenues | $ | 1,179.10 | $ | 1,146.90 | ||||
Pro forma net income | $ | 39.1 | $ | 39.4 | ||||
On November 30, 2012, the Company completed the acquisition of Elastomeros Tecnicos Moldeados Inc (“ETM”) for $1.1 million in cash, $0.5 million in promissory notes payable and $0.1 million annually in each of the next four years, if ETM achieves certain earnings levels. ETM is a provider of molded rubber products and has been integrated into the Company’s Assembly Components segment. The acquisition was accounted for under the acquisition method of accounting. Under the acquisition method of accounting, the purchase price is allocated to ETM’s tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of November 30, 2012, the effective date of the acquisition. Based on the final purchase price allocation, goodwill of $0.9 million was recorded. Assuming this acquisition had taken place at the beginning of 2011, pro forma results would not have been materially different. |
Dispositions
Dispositions | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Dispositions | ' | |||||||||||
Dispositions | ||||||||||||
On September 3, 2013, the Company sold all of the outstanding equity interests of a non-core business unit in the Supply Technologies segment for $8.5 million in cash. This business unit is a provider of high-quality machine to machine information technology solutions, products and services. As a result of the sale, this business unit has been removed from the Supply Technologies segment and presented as a discontinued operation for all of the periods presented. Additionally, the assets and liabilities of the business unit are classified as held for sale under the caption other current assets and accrued expenses and other, respectively, in the Company's consolidated balance sheet as of December 31, 2012. The financial position of the discontinued operation was not significant. Select financial information included in discontinued operations were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Net sales | $ | 5.2 | $ | 5.8 | $ | 5.2 | ||||||
Loss from discontinued operations before tax | (1.3 | ) | (4.0 | ) | (3.7 | ) | ||||||
Income tax benefit from operations | 0.5 | 1.6 | 1.4 | |||||||||
Net loss from discontinued operations | (0.8 | ) | (2.4 | ) | (2.3 | ) | ||||||
Gain on sale of business before tax | 5.3 | — | — | |||||||||
Income tax expense from gain on sale of business | (1.5 | ) | — | — | ||||||||
Net gain on sale of business | 3.8 | — | — | |||||||||
Income (loss) from discontinued operations, net of taxes | $ | 3 | $ | (2.4 | ) | $ | (2.3 | ) | ||||
Effective August 1, 2013, the Company entered into an agreement to sell 25% of its Southwest Steel Processing LLC ("SSP") business to Arkansas Steel Associates, LLC for $5.0 million in cash. SSP is included in our Engineered Products segment. This transaction facilitates the Company's capacity expansion in one of its growing product lines. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill | ' | |||||||||||||||
Goodwill | ||||||||||||||||
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||||||
Supply Technologies | Assembly Components | Engineered Products | Total | |||||||||||||
(In millions) | ||||||||||||||||
Balance at January 1, 2011 | $ | — | $ | 4.6 | $ | 4.5 | $ | 9.1 | ||||||||
Finalization of Pillar purchase price allocation | — | — | 0.4 | 0.4 | ||||||||||||
Balance at December 31, 2011 | — | 4.6 | 4.9 | 9.5 | ||||||||||||
Acquisitions | — | 40.2 | — | 40.2 | ||||||||||||
Balance at December 31, 2012 | — | 44.8 | 4.9 | 49.7 | ||||||||||||
Acquisitions | 6.2 | 4.2 | — | 10.4 | ||||||||||||
Foreign currency translation | 0.2 | — | 0.1 | 0.3 | ||||||||||||
Balance at December 31, 2013 | $ | 6.4 | $ | 49 | $ | 5 | $ | 60.4 | ||||||||
The increase in goodwill from December 31, 2012 is due to the acquisitions of Bates in the second quarter of 2013 and Henry Halstead and QEF in the fourth quarter of 2013. Bates is included in the Assembly Components reportable segment and Henry Halstead and QEF are included in the Supply Technologies reportable segment. The goodwill associated with the Bates transaction is deductible for income tax purposes. The goodwill associated with the Henry Halstead and QEF transactions are not deductible for income tax purposes. | ||||||||||||||||
The increase in goodwill from December 31, 2011 to December 31, 2012 is due to the acquisitions of FRS in the first quarter of 2012 and ETM in the fourth quarter of 2012. |
Other_Intangible_Assets
Other Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Other Intangible Assets | ' | |||||||||||||||||||||||||
Other Intangible Assets | ||||||||||||||||||||||||||
Information regarding other intangible assets as of December 31, 2013 and December 31, 2012 follows: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Weighted Average Useful Life | Acquisition | Accumulated | Net | Acquisition | Accumulated | Net | ||||||||||||||||||||
Costs | Amortization | Costs | Amortization | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Non-contractual customer relationships | 13.2 years | $ | 61.1 | $ | 8.7 | $ | 52.4 | $ | 41.7 | $ | 5.7 | $ | 36 | |||||||||||||
Other | 9.4 years | 3.9 | 1.8 | 2.1 | 3.4 | 1.3 | 2.1 | |||||||||||||||||||
$ | 65 | $ | 10.5 | $ | 54.5 | $ | 45.1 | $ | 7 | $ | 38.1 | |||||||||||||||
Indefinite-lived tradenames | 11.7 | 11.5 | ||||||||||||||||||||||||
Total | $ | 66.2 | $ | 49.6 | ||||||||||||||||||||||
Information regarding amortization expense of other intangible assets follows: | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Amortization expense | $ | 3.5 | $ | 2.5 | $ | 1.4 | ||||||||||||||||||||
Amortization expense for the five years subsequent to December 31, 2013 follows: | ||||||||||||||||||||||||||
Amortization Expense | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
2014 | $ | 4.5 | ||||||||||||||||||||||||
2015 | $ | 4.4 | ||||||||||||||||||||||||
2016 | $ | 4.3 | ||||||||||||||||||||||||
2017 | $ | 4.2 | ||||||||||||||||||||||||
2018 | $ | 4.1 | ||||||||||||||||||||||||
Other_LongTerm_Assets
Other Long-Term Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Long-Term Assets | ||||||||
Other assets consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Pension assets | $ | 73.3 | $ | 52.9 | ||||
Deferred financing costs, net | 5.7 | 7 | ||||||
Other | 1.4 | 2.2 | ||||||
Total | $ | 80.4 | $ | 62.1 | ||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||
Accrued Expenses | ' | |||||||||||
Accrued Expenses | ||||||||||||
Accrued expenses consists of the following: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Accrued salaries, wages and benefits | $ | 22.2 | $ | 20.1 | ||||||||
Advance billings | 20.4 | 27.2 | ||||||||||
Warranty accrual | 5.4 | 6.9 | ||||||||||
Interest payable | 5.6 | 5.5 | ||||||||||
Taxes, income and other | 2.9 | 6.1 | ||||||||||
Other | 23.4 | 17.8 | ||||||||||
Total | $ | 79.9 | $ | 83.6 | ||||||||
Substantially all advance billings relate to the Company’s industrial equipment business unit. Warranty liabilities are primarily associated with the Company’s industrial equipment business unit and the fluid routing solutions business. | ||||||||||||
The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents the changes in the Company’s product warranty liability for the years ended December 31, 2013, 2012, and 2011: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, | $ | 6.9 | $ | 4.2 | $ | 4 | ||||||
Claims paid during the year | (6.4 | ) | (6.0 | ) | (3.4 | ) | ||||||
Warranty expense | 4.9 | 5.4 | 3.6 | |||||||||
Acquired warranty liabilities | — | 3.3 | — | |||||||||
Balance at December 31, | $ | 5.4 | $ | 6.9 | $ | 4.2 | ||||||
Financing_Arrangements
Financing Arrangements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Financing Arrangements | ' | |||||||
Financing Arrangements | ||||||||
Long-term debt consists of the following: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
(In millions) | ||||||||
8.125% Senior Notes due 2021 | $ | 250 | $ | 250 | ||||
Revolving credit | 111 | 101.9 | ||||||
Term loan | 18.7 | 22.3 | ||||||
Other | 3.9 | 4.4 | ||||||
Total debt | 383.6 | 378.6 | ||||||
Less current maturities | 4.4 | 4.4 | ||||||
Total long-term debt, net of current portion | $ | 379.2 | $ | 374.2 | ||||
On April 7, 2011, the Company completed the sale of $250.0 million in the aggregate principal amount of 8.125% senior notes due 2021 (the "Notes"). The Notes bear an interest rate of 8.125% per annum, payable semi-annually in arrears on April 1 and October 1 of each year. The Notes mature on April 1, 2021. The Company is a party to a credit and security agreement, dated November 5, 2003, as amended (the “Credit Agreement”), with a group of banks, under which it may borrow or issue standby letters of credit or commercial letters of credit. On March 23, 2012, the Credit Agreement was amended and restated to, among other things, increase the revolving loan commitment from $200.0 million to $220.0 million, and provide a term loan for $25.0 million that is secured by certain real estate and machinery and equipment. The Company may increase the commitment by an additional $30.0 million during the term of the Credit Agreement. At December 31, 2013, in addition to amounts borrowed under the revolving credit facility, there was $12.0 million outstanding for standby letters of credit. An annual fee of up to 0.5% is imposed by the bank on the unused borrowing capacity and is based on the total aggregate credit facility used. Amounts borrowed under the revolving credit facility may be borrowed at either (i) LIBOR plus 1.75% to 2.75% or (ii) the bank’s prime lending rate minus 0.25% to 1.00%, at the Company’s election. The LIBOR-based interest rate is dependent on the Company’s debt service coverage ratio, as defined in the Credit Agreement. Under the Credit Agreement, a detailed borrowing base formula provides borrowing availability to the Company based on percentages of eligible accounts receivable and inventory. On April 3, 2013, the Credit Agreement was amended to increase the advance rate on eligible accounts receivable and inventory. The interest rate on the revolving credit facility was 1.94% at December 31, 2013. At December 31, 2013, the Company had approximately $67.8 million of unused borrowing capacity available under the revolving credit facility. Interest on the term loan is at either (i) LIBOR plus 2.75% or (ii) the bank’s prime lending rate plus 0.25%, at the Company’s election. The term loan is amortized based on a seven-year schedule with the balance due at maturity (April 7, 2016). The interest rate on the term loan was 3.00% at December 31, 2013. | ||||||||
The following table represents fair value information of the Company's 8.125% Senior Notes due 2021 at December 31, 2013 and 2012. The fair value was estimated based on quoted market prices, which is a Level 1 fair value input as defined in Note 1. | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
(In millions) | ||||||||
Carrying amount | $ | 250 | $ | 250 | ||||
Fair value | $ | 275.6 | $ | 266.3 | ||||
Maturities of long-term debt during each of the five years subsequent to December 31, 2013 follows: | ||||||||
(In millions) | ||||||||
2014 | 4.4 | |||||||
2015 | 4.4 | |||||||
2016 | 123.4 | |||||||
2017 | 0.7 | |||||||
2018 | 0.5 | |||||||
Foreign subsidiaries of the Company had no borrowings at December 31, 2013 and 2012 and outstanding bank guarantees of approximately $7.2 million and $9.2 million at December 31, 2013 and 2012, respectively, under their credit arrangements. | ||||||||
The Notes are general unsecured senior obligations of the Company and are fully and unconditionally guaranteed on a joint and several basis by all material 100% owned domestic subsidiaries of the Company. Provisions of the indenture governing the Notes and the Credit Agreement contain restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to make certain payments, investments, loans and guarantees and to sell or otherwise dispose of a substantial portion of assets or to merge or consolidate with an unaffiliated entity. At December 31, 2013, the Company was in compliance with all financial covenants of the Credit Agreement. | ||||||||
The weighted average interest rate on all debt was 6.10% at December 31, 2013 and 6.15% at December 31, 2012. | ||||||||
In connection with the sale of the Notes, the Company incurred debt extinguishment costs related primarily to premiums and other transaction costs and wrote off deferred financing costs totaling $7.3 million in 2011. In connection with the amendment to the Credit Agreement in 2012, the Company wrote off deferred financing costs of $0.3 million. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Income from continuing operations before income tax expense consists of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
United States | $ | 48.4 | $ | 39.1 | $ | 17.5 | ||||||
Outside the United States | 11.9 | 15.4 | 10.4 | |||||||||
$ | 60.3 | $ | 54.5 | $ | 27.9 | |||||||
Income taxes consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Current expense (benefit): | ||||||||||||
Federal | $ | 16 | $ | 7.5 | $ | — | ||||||
State | 1.5 | 0.8 | 0.5 | |||||||||
Foreign | 4.2 | 4.4 | 7.1 | |||||||||
21.7 | 12.7 | 7.6 | ||||||||||
Deferred expense (benefit): | ||||||||||||
Federal | 1.2 | 7.5 | (8.3 | ) | ||||||||
State | (2.6 | ) | (0.2 | ) | (2.5 | ) | ||||||
Foreign | (0.9 | ) | 0.3 | (0.6 | ) | |||||||
(2.3 | ) | 7.6 | (11.4 | ) | ||||||||
Income tax expense (benefit) | $ | 19.4 | $ | 20.3 | $ | (3.8 | ) | |||||
The reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||
Rate Reconciliation | 2013 | 2012 | 2011 | |||||||||
(In millions) | ||||||||||||
Tax at statutory rate | $ | 21.1 | $ | 19.3 | $ | 9.9 | ||||||
Effect of state income taxes, net | 1.1 | 0.9 | 0.1 | |||||||||
Effect of foreign operations | (0.2 | ) | (0.1 | ) | 2.9 | |||||||
Valuation allowance | (1.6 | ) | (0.2 | ) | (16.8 | ) | ||||||
Non-deductible items | 0.7 | 0.6 | 0.4 | |||||||||
Manufacturer's deduction | (1.4 | ) | (0.6 | ) | — | |||||||
Other, net | (0.3 | ) | 0.4 | (0.3 | ) | |||||||
Total | $ | 19.4 | $ | 20.3 | $ | (3.8 | ) | |||||
Significant components of the Company’s net deferred tax assets and liabilities are as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Deferred tax assets: | ||||||||||||
Postretirement benefit obligation | $ | 5.9 | $ | 7 | ||||||||
Inventory | 13.2 | 11.5 | ||||||||||
Net operating loss and credit carryforwards | 3.8 | 5.3 | ||||||||||
Goodwill | 0.5 | 0.6 | ||||||||||
Other | 17.1 | 13.1 | ||||||||||
Total deferred tax assets | 40.5 | 37.5 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | 11.7 | 8.7 | ||||||||||
Inventory | 0.6 | 0.6 | ||||||||||
Pension | 26.4 | 19.2 | ||||||||||
Goodwill | 2.7 | — | ||||||||||
Intangible assets and other | 16.6 | 16.5 | ||||||||||
Total deferred tax liabilities | 58 | 45 | ||||||||||
Net deferred tax liabilities prior to valuation allowances | (17.5 | ) | (7.5 | ) | ||||||||
Valuation allowances | (2.6 | ) | (4.2 | ) | ||||||||
Net deferred tax liability | $ | (20.1 | ) | $ | (11.7 | ) | ||||||
At December 31, 2013, the Company has state and foreign net operating loss carryforwards for income tax purposes. The foreign net operating loss carryforward is $5.2 million, of which $2.9 million expires between 2014 and 2025 and the remainder has no expiration date. The Company also has a tax benefit from a state net operating loss carryforward of $4.1 million that expires between 2014 and 2033. | ||||||||||||
The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company’s tax years for 2010 through 2013 remain open for examination by the U.S. and various state and foreign taxing authorities. | ||||||||||||
As of December 31, 2013 and 2012, the Company was not in a cumulative three-year loss position and it was determined that it was more likely than not that its U.S. deferred tax assets will be realized. As of December 31, 2013, the Company reversed a valuation allowance of $1.6 million against its state net operating loss carryforward. As of December 31, 2013 and 2012, the Company recorded valuation allowances of $1.2 million and $0.2 million, respectively, against certain foreign net deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including reversals of deferred tax liabilities). The Company reviews all valuation allowances related to deferred tax assets and will reverse these valuation allowances, partially or totally, when appropriate under ASC 740. | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Unrecognized Tax Benefit — January 1, | $ | 6.1 | $ | 6 | $ | 6.2 | ||||||
Gross Increases — Tax Positions in Prior Period | 0.4 | 0.1 | — | |||||||||
Gross Decreases — Tax Positions in Prior Period | (0.6 | ) | — | (0.1 | ) | |||||||
Gross Increases — Tax Positions in Current Period | — | 0.1 | 0.1 | |||||||||
Settlements | — | — | — | |||||||||
Lapse of Statute of Limitations | — | (0.1 | ) | (0.2 | ) | |||||||
Unrecognized Tax Benefit — December 31, | $ | 5.9 | $ | 6.1 | $ | 6 | ||||||
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $4.7 million at December 31, 2013 and $4.9 million at December 31, 2012. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2013 and 2012, the Company recognized approximately $0.7 million and $0.1 million, respectively, in net interest and penalties. The Company had approximately $1.4 million and $0.8 million for the payment of interest and penalties accrued at December 31, 2013 and 2012, respectively. The Company does not expect that the unrecognized tax benefit will change significantly within the next twelve months. | ||||||||||||
Deferred taxes have not been provided on approximately $82.6 million of undistributed earnings of the Company’s foreign subsidiaries as it is the Company’s policy and intent to permanently reinvest such earnings. The Company has determined that it is not practicable to determine the unrecognized tax liability on such undistributed earnings. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
Under the provisions of the Company’s 1998 Long-Term Incentive Plan, as amended (“1998 Plan”), which is administered by the Compensation Committee of the Company’s Board of Directors, incentive stock options, non-statutory stock options, stock appreciation rights (“SARs”), restricted share units, performance shares or stock awards may be awarded to directors and all employees of the Company and its subsidiaries. Stock options will be exercisable in whole or in installments as may be determined provided that no options will be exercisable more than ten years from date of grant. The exercise price will be the fair market value at the date of grant. The aggregate number of shares of the Company’s common stock that may be awarded under the 1998 Plan is 3,700,000, all of which may be incentive stock options. No more than 500,000 shares shall be the subject of awards to any individual participant in any one calendar year. | ||||||||||||||
There were no stock options awarded in 2013, 2012 and 2011. The compensation expense related to option awards was $0.1 million for 2011. | ||||||||||||||
A summary of stock option activity as of December 31, 2013 and changes during the year then ended is presented below: | ||||||||||||||
2013 | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(in whole shares) | (in millions) | |||||||||||||
Outstanding — beginning of year | 186,334 | 15.02 | ||||||||||||
Granted | — | — | ||||||||||||
Exercised | (40,334 | ) | 8.89 | |||||||||||
Canceled or expired | — | — | ||||||||||||
Outstanding — end of year | 146,000 | 16.71 | 2.7 years | $ | 5.2 | |||||||||
Options exercisable | 146,000 | 16.71 | 2.7 years | $ | 5.2 | |||||||||
Exercise prices for options outstanding as of December 31, 2013 range from $14.12 to $15.61 and $20.00 to $24.92. The number of options outstanding and exercisable at December 31, 2013, which correspond with these ranges, are 111,000 and 35,000, respectively. The weighted average contractual life of these options is 2.7 years. | ||||||||||||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $1.1 million, $0.8 million and $3.6 million, respectively. Net cash proceeds from the exercise of stock options were $0.4 million, $0.5 million and $0.5 million, respectively. | ||||||||||||||
In 2012, the Company awarded an employee the option to purchase up to an aggregate of $0.5 million of common stock at its then-current market value at a 20% discount and recognized compensation expense of $0.1 million. | ||||||||||||||
A summary of restricted share and performance share activity for the year ended December 31, 2013 is as follows: | ||||||||||||||
2013 | ||||||||||||||
Time-Based | Performance-Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
(in whole shares) | (in whole shares) | |||||||||||||
Outstanding — beginning of year | 385,168 | $ | 14.94 | 56,000 | $ | 20.3 | ||||||||
Granted | 212,050 | 30.37 | — | |||||||||||
Vested | (170,320 | ) | 18.86 | (14,000 | ) | 20.3 | ||||||||
Canceled or expired | (4,000 | ) | 21.59 | — | ||||||||||
Outstanding — end of year | 422,898 | $ | 21.04 | 42,000 | $ | 20.3 | ||||||||
The Company recognized compensation expense of $4.7 million, $2.7 million and $2.1 million for the years ended December 31, 2013, 2012 and 2011, respectively, relating to restricted shares and performance shares. | ||||||||||||||
The total fair value of restricted stock units vested during the years ended December 31, 2013, 2012 and 2011 was $6.1 million, $4.6 million and $4.0 million, respectively. | ||||||||||||||
The Company recognizes compensation cost of all share-based awards as expense on a straight-line basis over the vesting period of the awards. | ||||||||||||||
As of December 31, 2013, the Company had unrecognized compensation expense of $8.0 million, before taxes, related to stock option awards and restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of 2.1 years. | ||||||||||||||
The number of shares available for future grants for all plans at December 31, 2013 is 267,953. |
Commitments_Contingencies_and_
Commitments, Contingencies and Litigation Judgment | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments, Contingencies and Litigation Judgment | ' | |||
Commitments, Contingencies and Litigation Judgment | ||||
The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. Although the Company cannot precisely predict the amount of any liability that may ultimately arise with respect to any of these matters, the Company records provisions when it considers the liability probable and reasonably estimable. Our provisions are based on historical experience and legal advice, reviewed quarterly and adjusted according to developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments about potential actions by third parties, such as regulators, courts, and state and federal legislatures. Changes in the amounts of our loss provisions, which can be material, affect our financial condition. Due to the inherent uncertainties in the process undertaken to estimate potential losses, we are unable to estimate an additional range of loss in excess of our accruals. While it is reasonably possible that such excess liabilities, if they were to occur, could be material to operating results in any given quarter or year of their recognition, we do not believe that it is reasonably possible that such excess liabilities would have a material adverse effect on our long-term results of operations, liquidity or consolidated financial position. | ||||
Our subsidiaries are involved in a number of contractual and warranty related disputes. At this time, we cannot reasonably determine the probability of a loss, and the timing and amount of loss, if any, cannot be reasonably estimated. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. | ||||
Ajax Tocco Magnethermic Corporation (“ATM”) was the defendant in a lawsuit in the United States District Court for the Eastern District of Arkansas. The plaintiff is IPSCO Tubulars Inc. d/b/a TMK IPSCO. The complaint alleged claims for breach of contract, gross negligence and constructive fraud, and TMK IPSCO sought approximately $10.0 million in damages as well as an unspecified amount of punitive damages. ATM denied the allegations against it, believes it has a number of meritorious defenses and vigorously defended the lawsuit. A motion for partial summary judgment filed by ATM that, among other things, denied the plaintiff's fraud claims was granted by the district court. The remaining claims were the subject of a bench trial in May 2013. At the close of TMK IPSCO's case, the court entered partial judgment in favor of ATM, dismissing the gross negligence claim, dismissing a portion of the breach of contract claim, and dismissing any claim for punitive damages. The trial proceeded with respect to the remainder of TMK IPSCO's claim for damages and, in September 2013, the district court awarded TMK IPSCO damages of approximately $5.2 million. ATM is appealing the court’s decision. TMK IPSCO is also appealing the decision and, additionally, it has asked the court for $3.8 million in attorney's fees. | ||||
In August 2013, the Company received a subpoena from the staff of the SEC in connection with the staff’s investigation of a third party. At that time, the Company also learned that the Department of Justice (“DOJ”) is conducting a criminal investigation of the third party. In connection with responding to the staff’s subpoena, the Company disclosed to the staff of the SEC that, in November 2007, the third party participated in a payment on behalf of the Company to a foreign tax official that implicates the Foreign Corrupt Practices Act (“FCPA”). | ||||
The Board of Directors of the Company has formed a special committee to review the Company’s transactions with the third party and to make any recommendations to the Board of Directors with respect thereto. | ||||
The Company intends to cooperate fully with the SEC and the DOJ in connection with their investigations of the third party and with the SEC in light of the Company’s disclosure. The Company is unable to predict the outcome or impact of the special committee’s investigation or the length, scope or results of the SEC’s review or the impact, if any, on its results of operations. | ||||
Leases | ||||
Future minimum lease commitments during each of the five years following December 31, 2013 and thereafter are as follows: | ||||
(In millions) | ||||
2014 | $ | 13.5 | ||
2015 | 10.9 | |||
2016 | 9.4 | |||
2017 | 7.2 | |||
2018 | 5.1 | |||
Thereafter | 4 | |||
Rental expense for 2013, 2012 and 2011 was $17.6 million, $15.8 million and $16.4 million, respectively. | ||||
Certain of the Company’s leases are with related parties at an annual rental expense of approximately $2.6 million. Transactions with related parties are in the ordinary course of business, are conducted on an arms length basis, and are not material to the Company’s financial position, results of operations or cash flows. | ||||
During the years ended December 31, 2013 and 2012, we entered into sales leaseback transactions for certain equipment. No gains or losses resulted from these transactions and the leases are being accounted for as operating leases. |
Pensions_and_Postretirement_Be
Pensions and Postretirement Benefits | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Pensions and Postretirement Benefits | ' | |||||||||||||||||||||||||||||||
Pensions and Postretirement Benefits | ||||||||||||||||||||||||||||||||
The Company and its subsidiaries have pension plans, principally noncontributory defined benefit or noncontributory defined contribution plans, covering substantially all employees. In addition, the Company has an unfunded postretirement benefit plan. In April 2011, the Company amended one of its plans to cover most U.S. employees not covered by collective bargaining agreements using a cash balance formula, which increased the 2011 benefit obligation by approximately $1.1 million. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits that are based upon a percentage of current eligible earnings and current interest credits. For the remaining defined benefit plans, benefits are based on the employee’s years of service. For the defined contribution plans, the costs charged to operations and the amount funded are based upon a percentage of the covered employees’ compensation. | ||||||||||||||||||||||||||||||||
The following tables set forth the change in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 56.4 | $ | 52.3 | $ | 18.5 | $ | 18.6 | ||||||||||||||||||||||||
Service cost | 2.6 | 2.2 | 0.1 | — | ||||||||||||||||||||||||||||
Interest cost | 2 | 2.2 | 0.6 | 0.8 | ||||||||||||||||||||||||||||
Actuarial (gains) losses | (4.4 | ) | 4.2 | (1.3 | ) | 1.1 | ||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.5 | ) | (4.5 | ) | (1.7 | ) | (2.0 | ) | ||||||||||||||||||||||||
Benefit obligation at end of year | $ | 52.1 | $ | 56.4 | $ | 16.2 | $ | 18.5 | ||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 109.4 | $ | 101.8 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 21.8 | 13.7 | — | — | ||||||||||||||||||||||||||||
Company contributions | — | — | 1.7 | 2 | ||||||||||||||||||||||||||||
Cash transfer to fund postretirement benefit payments | (1.3 | ) | (1.6 | ) | — | — | ||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.5 | ) | (4.5 | ) | (1.7 | ) | (2.0 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 125.4 | $ | 109.4 | $ | — | $ | — | ||||||||||||||||||||||||
Funded (underfunded) status of the plans | $ | 73.3 | $ | 53 | $ | (16.2 | ) | $ | (18.5 | ) | ||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | 73.3 | $ | 53 | $ | — | $ | — | ||||||||||||||||||||||||
Noncurrent liabilities | — | — | 14.5 | 16.6 | ||||||||||||||||||||||||||||
Current liabilities | — | — | 1.7 | 1.9 | ||||||||||||||||||||||||||||
$ | 73.3 | $ | 53 | $ | 16.2 | $ | 18.5 | |||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 2.1 | $ | 20.3 | $ | 6.3 | $ | 8.2 | ||||||||||||||||||||||||
Net prior service cost (credit) | 0.1 | 0.1 | (0.5 | ) | (0.6 | ) | ||||||||||||||||||||||||||
Net transition (asset) | — | (0.1 | ) | — | — | |||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | 2.2 | $ | 20.3 | $ | 5.8 | $ | 7.6 | ||||||||||||||||||||||||
As of December 31, 2013 and 2012, the Company’s defined benefit pension plans did not hold a material amount of shares of the Company’s common stock. | ||||||||||||||||||||||||||||||||
The pension plan weighted-average asset allocation at December 31, 2013 and 2012 and target allocation for 2014 are as follows: | ||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||
Target 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Equity securities | 45-75% | 67.2 | % | 64.4 | % | |||||||||||||||||||||||||||
Debt securities | 10-40 | 25.4 | % | 27.8 | % | |||||||||||||||||||||||||||
Other | 0-20 | 7.4 | % | 7.8 | % | |||||||||||||||||||||||||||
100% | 100 | % | 100 | % | ||||||||||||||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans assets: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Collective trust and pooled insurance funds: | ||||||||||||||||||||||||||||||||
Common stock | $ | 48.3 | $ | 2.5 | $ | — | $ | 50.8 | $ | 40.1 | $ | 2.5 | $ | — | $ | 42.6 | ||||||||||||||||
Equity Funds | 26.9 | — | — | 26.9 | 23.9 | — | — | 23.9 | ||||||||||||||||||||||||
Foreign Stock | 5.6 | — | — | 5.6 | 4.1 | — | — | 4.1 | ||||||||||||||||||||||||
U.S. Government obligations | 5.1 | — | — | 5.1 | 6.5 | — | — | 6.5 | ||||||||||||||||||||||||
Fixed income funds | 18.8 | — | — | 18.8 | 17.1 | — | — | 17.1 | ||||||||||||||||||||||||
Balanced funds | 2.1 | — | — | 2.1 | — | — | — | — | ||||||||||||||||||||||||
Corporate Bonds | 6.8 | — | — | 6.8 | 6.8 | — | — | 6.8 | ||||||||||||||||||||||||
Cash and Cash Equivalents | 2 | — | — | 2 | 2 | — | — | 2 | ||||||||||||||||||||||||
Hedge funds | — | — | 7.3 | 7.3 | — | — | 6.4 | 6.4 | ||||||||||||||||||||||||
$ | 115.6 | $ | 2.5 | $ | 7.3 | $ | 125.4 | $ | 100.5 | $ | 2.5 | $ | 6.4 | $ | 109.4 | |||||||||||||||||
The following table presents a reconciliation of Level 3 assets, as defined in Note 1, held during the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||
Balance at | Net Unrealized | Purchases | Balance at | |||||||||||||||||||||||||||||
Beginning of Year | Gain | End of Year | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Hedge Funds: | ||||||||||||||||||||||||||||||||
2013 | $ | 6.4 | $ | 0.9 | $ | — | $ | 7.3 | ||||||||||||||||||||||||
2012 | $ | 5.9 | $ | 0.5 | $ | — | $ | 6.4 | ||||||||||||||||||||||||
The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31, and to measure the net periodic benefit cost in the following year. | ||||||||||||||||||||||||||||||||
Weighted-Average assumptions as of December 31, | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Discount rate | 4.51 | % | 3.66 | % | 4.5 | % | 4.21 | % | 3.35 | % | 4.5 | % | ||||||||||||||||||||
Expected return on plan assets | 8.25 | % | 8.25 | % | 8.25 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Rate of compensation increase | 2 | % | 2 | % | 2 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Medical health care benefits rate increase | N/A | N/A | N/A | 6.5 | % | 7 | % | 6.5 | % | |||||||||||||||||||||||
Medical drug benefits rate increase | N/A | N/A | N/A | 6.5 | % | 7.25 | % | 8 | % | |||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||
Year of ultimate trend rate | N/A | N/A | N/A | 2042 | 2042 | 2042 | ||||||||||||||||||||||||||
In determining its expected return on plan assets assumption for the year ended December 31, 2013, the Company considered historical experience, its asset allocation, expected future long-term rates of return for each major asset class, and an assumed long-term inflation rate. Based on these factors, the Company derived an expected return on plan assets for the year ended December 31, 2013 of 8.25%. This assumption was supported by the asset return generation model, which projected future asset returns using simulation and asset class correlation. | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||
Service costs | $ | 2.6 | $ | 2.2 | $ | 1.6 | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||||||||||||
Interest costs | 2 | 2.2 | 2.3 | 0.6 | 0.8 | 0.9 | ||||||||||||||||||||||||||
Expected return on plan assets | (8.9 | ) | (8.2 | ) | (8.9 | ) | — | — | — | |||||||||||||||||||||||
Amortization of prior service credit | — | — | — | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||||
Recognized net actuarial loss | 0.8 | 0.9 | — | 0.7 | 0.7 | 0.4 | ||||||||||||||||||||||||||
Benefit (income) costs | $ | (3.5 | ) | $ | (2.9 | ) | $ | (5.0 | ) | $ | 1.3 | $ | 1.4 | $ | 1.3 | |||||||||||||||||
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | ||||||||||||||||||||||||||||||||
AOCI at beginning of year | $ | 20.3 | $ | 22.4 | $ | 7.7 | $ | 7.6 | $ | 7.1 | $ | 6.1 | ||||||||||||||||||||
Net (gain) loss arising during the year | (17.3 | ) | (1.2 | ) | 14.7 | (1.2 | ) | 1.1 | 1.3 | |||||||||||||||||||||||
Recognition of prior service credit | — | — | — | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||
Recognition of actuarial loss | (0.8 | ) | (0.9 | ) | — | (0.7 | ) | (0.7 | ) | (0.4 | ) | |||||||||||||||||||||
Total recognized in accumulated other comprehensive loss at end of year | $ | 2.2 | $ | 20.3 | $ | 22.4 | $ | 5.8 | $ | 7.6 | $ | 7.1 | ||||||||||||||||||||
The estimated net loss, prior service cost and net transition obligation for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2014 are immaterial. | ||||||||||||||||||||||||||||||||
The estimated net loss and prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2014 is $0.6 million and $(0.1) million, respectively. | ||||||||||||||||||||||||||||||||
Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years: | ||||||||||||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||||||||
Pension Benefits | Gross | Expected | Net including | |||||||||||||||||||||||||||||
Medicare Subsidy | Medicare Subsidy | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2014 | $ | 4.2 | $ | 1.9 | $ | 0.2 | $ | 1.7 | ||||||||||||||||||||||||
2015 | 4.2 | 1.8 | 0.2 | 1.6 | ||||||||||||||||||||||||||||
2016 | 4.1 | 1.7 | 0.2 | 1.5 | ||||||||||||||||||||||||||||
2017 | 4.3 | 1.6 | 0.2 | 1.4 | ||||||||||||||||||||||||||||
2018 | 4.2 | 1.5 | 0.1 | 1.4 | ||||||||||||||||||||||||||||
2019 to 2023 | 21.9 | 6.2 | 0.6 | 5.6 | ||||||||||||||||||||||||||||
The Company has a postretirement benefit plan. Under the plan, health care benefits are provided on both a contributory and noncontributory basis. The assumed health care cost trend rate has a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects: | ||||||||||||||||||||||||||||||||
1-Percentage | 1-Percentage | |||||||||||||||||||||||||||||||
Point | Point | |||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components in 2013 | $ | 0.1 | $ | — | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligation as of December 31, 2013 | $ | 1.3 | $ | (1.1 | ) | |||||||||||||||||||||||||||
The Company expects to have no contributions to its defined benefit plans in 2014. | ||||||||||||||||||||||||||||||||
In January 2008, a Supplemental Executive Retirement Plan (“SERP”) for the Company’s Chairman of the Board of Directors and Chief Executive Officer (“CEO”) was approved by the Compensation Committee of the Board of Directors of the Company. The SERP provides an annual supplemental retirement benefit for up to $0.4 million upon the CEO’s termination of employment with the Company. The vested retirement benefit will be equal to a percentage of the Supplemental Pension that is equal to the ratio of the sum of his credited service with the Company prior to January 1, 2008 (up to a maximum of thirteen years), and his credited service on or after January 1, 2008 (up to a maximum of seven years) to twenty years of credited service. In the event of a change in control before the CEO’s termination of employment, he will receive 100% of the Supplemental Pension. The Company recorded an expense of $0.5 million in 2013 and 2012 related to the SERP and $0.4 million in 2011. Additionally, a non-qualified defined contribution retirement benefit was also approved in which the Company will credit $0.1 million quarterly ($0.4 million annually) for a seven-year period to an account in which the CEO will always be 100% vested. The seven year period began on March 31, 2008. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Comprehensive Income (Loss) | ' | |||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||
The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||
Cumulative Translation Adjustment | Pension and Postretirement Benefits | Total | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, 2011 | $ | 6.2 | $ | (3.8 | ) | $ | 2.4 | |||||
Foreign currency translation adjustments (a) | (1.4 | ) | — | (1.4 | ) | |||||||
Loss arising during the year | — | (16.0 | ) | (16.0 | ) | |||||||
Tax adjustment (c) | — | 6.4 | 6.4 | |||||||||
Net loss arising during the year | — | (9.6 | ) | (9.6 | ) | |||||||
Recognition of actuarial gain (b) | — | 0.4 | 0.4 | |||||||||
Tax adjustment (c) | — | (0.2 | ) | (0.2 | ) | |||||||
Recognition of actuarial gain, net | — | 0.2 | 0.2 | |||||||||
Balance at December 31, 2011 | 4.8 | (13.2 | ) | (8.4 | ) | |||||||
Foreign currency translation adjustments (a) | 0.6 | — | 0.6 | |||||||||
Recognition of actuarial gain, net (b) | — | 1.6 | 1.6 | |||||||||
Tax adjustment (c) | — | (0.6 | ) | (0.6 | ) | |||||||
Recognition of actuarial gain, net | — | 1 | 1 | |||||||||
Balance at December 31, 2012 | 5.4 | (12.2 | ) | (6.8 | ) | |||||||
Foreign currency translation adjustments (a) | (2.6 | ) | — | (2.6 | ) | |||||||
Recognition of actuarial gain, net (b) | — | 19.9 | 19.9 | |||||||||
Tax adjustment (c) | — | (7.1 | ) | (7.1 | ) | |||||||
Recognition of actuarial gain, net | — | 12.8 | 12.8 | |||||||||
Balance at December 31, 2013 | $ | 2.8 | $ | 0.6 | $ | 3.4 | ||||||
(a) | No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. | |||||||||||
(b) | The recognition of actuarial gains are reclassified out of accumulated other comprehensive income and included in the computation of net periodic benefit cost in selling, general and administrative expenses. | |||||||||||
(c) | The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expenses. |
Restructuring_and_Unusual_Char
Restructuring and Unusual Charges | 12 Months Ended |
Dec. 31, 2013 | |
Restructuring and Related Activities [Abstract] | ' |
Restructuring and Unusual Charges | ' |
Restructuring and Unusual Charges | |
During the third quarter of 2011, the Company recorded a $5.4 million restructuring and asset impairment charge related to the write down of underperforming assets in its Assembly Components segment. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | ' | |||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
Quarter Ended | ||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | |||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||
2013 | ||||||||||||||||
Net sales | $ | 283 | $ | 307.3 | $ | 303.5 | $ | 309.4 | ||||||||
Gross profit | 51.6 | 57.5 | 54.6 | 47.3 | ||||||||||||
Net income from continuing operations | 10.7 | 12.1 | 8.7 | 9.4 | ||||||||||||
Income (loss) from discontinued operations, net of taxes | (0.4 | ) | (0.1 | ) | 3.7 | (0.2 | ) | |||||||||
Net income attributable to noncontrolling interest | — | — | (0.2 | ) | (0.3 | ) | ||||||||||
Net income attributable to ParkOhio common shareholders | $ | 10.3 | $ | 12 | $ | 12.2 | $ | 8.9 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Basic: | ||||||||||||||||
Continuing operations | $ | 0.9 | $ | 1.02 | $ | 0.71 | $ | 0.76 | ||||||||
Discontinued operations | (0.03 | ) | (0.01 | ) | 0.31 | (0.02 | ) | |||||||||
Total | $ | 0.87 | $ | 1.01 | $ | 1.02 | $ | 0.74 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Diluted: | ||||||||||||||||
Continuing operations | $ | 0.88 | $ | 0.99 | $ | 0.69 | $ | 0.74 | ||||||||
Discontinued operations | (0.03 | ) | (0.01 | ) | 0.3 | (0.02 | ) | |||||||||
Total | $ | 0.85 | $ | 0.98 | $ | 0.99 | $ | 0.72 | ||||||||
2012 | ||||||||||||||||
Net sales | $ | 261.7 | $ | 307.3 | $ | 285.2 | $ | 274 | ||||||||
Gross profit | 49 | 55.9 | 54.2 | 48.2 | ||||||||||||
Net income from continuing operations | 9.6 | 5 | 11.4 | 8.2 | ||||||||||||
Loss from discontinued operations, net of taxes | (0.6 | ) | (0.6 | ) | (0.7 | ) | (0.5 | ) | ||||||||
Net income attributable to ParkOhio common shareholders | $ | 9 | $ | 4.4 | $ | 10.7 | $ | 7.7 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Basic: | ||||||||||||||||
Continuing operations | $ | 0.81 | $ | 0.42 | $ | 0.95 | $ | 0.68 | ||||||||
Discontinued operations | (0.05 | ) | (0.05 | ) | (0.06 | ) | (0.04 | ) | ||||||||
Total | $ | 0.76 | $ | 0.37 | $ | 0.89 | $ | 0.64 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Diluted: | ||||||||||||||||
Continuing operations | $ | 0.79 | $ | 0.42 | $ | 0.94 | $ | 0.67 | ||||||||
Discontinued operations | (0.05 | ) | (0.05 | ) | (0.06 | ) | (0.04 | ) | ||||||||
Total | $ | 0.74 | $ | 0.37 | $ | 0.88 | $ | 0.63 | ||||||||
Note A — | In the second quarter of 2013, the Company completed the acquisition of substantially all of the assets of Bates, a manufacturer of extruded, formed and molded products and is included in our Assembly Components segment. | |||||||||||||||
Note B — | Effective August 1, 2013, the Company sold a 25% interest in its Southwest Steel Processing business. | |||||||||||||||
Note C — | On September 3, 2013, the Company sold all of the outstanding equity interests of a non-core business unit in the Supply Technologies segment for $8.5 million in cash. The results of this business unit are reported as discontinued operations and prior periods are adjusted to reflect the discontinued operation. | |||||||||||||||
Note D — | In September 2013, the Company recorded a $5.2 million pre-tax litigation judgment. | |||||||||||||||
Note E — | During the fourth quarter of 2013, the Company acquired the outstanding capital stock of Henry Halstead and QEF. Both companies are providers of supply chain management solutions. | |||||||||||||||
Note F — | In the first quarter of 2012, the Company completed the acquisition of FRS, a leading manufacturer of industrial rubber and thermoplastic hose products and fuel filler and hydraulic fluid assemblies for the automotive and industrial industries, in an all cash transaction for approximately $98.8 million. | |||||||||||||||
Note G — | In the second quarter of 2012, the Company entered into a settlement agreement with a customer pursuant to which it agreed to settle all claims subject to an arbitration agreement by paying the customer $13.0 million in cash. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts and Reserves | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||
Valuation and Qualifying Accounts and Reserves | ' | |||||||||||
Schedule II | ||||||||||||
PARK-OHIO HOLDINGS CORP. | ||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ||||||||||||
Description | Balance at | Charged to | Deductions | Balance at | ||||||||
Beginning of | Costs and | and | End of | |||||||||
Period | Expenses | Other | Period | |||||||||
(In millions) | ||||||||||||
Year Ended December 31, 2013: | ||||||||||||
Allowances deducted from assets: | ||||||||||||
Trade receivable allowances | 3.5 | 1.8 | (1.6 | ) | (A) | 3.7 | ||||||
Inventory obsolescence reserve | 27.2 | 9.4 | (8.2 | ) | (B) | 28.4 | ||||||
Tax valuation allowances | 4.2 | (1.6 | ) | — | 2.6 | |||||||
Year Ended December 31, 2012: | ||||||||||||
Allowances deducted from assets: | ||||||||||||
Trade receivable allowances | 5.5 | 1.8 | (3.8 | ) | (A) | 3.5 | ||||||
Inventory obsolescence reserve | 24.9 | 11.6 | (9.3 | ) | (B) | 27.2 | ||||||
Tax valuation allowances | 4.4 | (0.2 | ) | — | 4.2 | |||||||
Year Ended December 31, 2011: | ||||||||||||
Allowances deducted from assets: | ||||||||||||
Trade receivable allowances | 6 | 0.6 | (1.1 | ) | (A) | 5.5 | ||||||
Inventory obsolescence reserve | 22.8 | 7.4 | (5.3 | ) | (B) | 24.9 | ||||||
Tax valuation allowances | 22.4 | (18.0 | ) | — | 4.4 | |||||||
Note (A)- Uncollectable accounts written off, net of recoveries. | ||||||||||||
Note (B)- Amounts written off or payments incurred, net of acquired reserves. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Consolidation and Basis of Presentation | ' |
Consolidation and Basis of Presentation: The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated upon consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. In the ordinary course of business, the Company leases certain real properties owned by related parties as described in Note 12. Transactions with related parties are in the ordinary course of business, are conducted on an arm’s-length basis, and are not material to the Company’s financial position, results of operations or cash flows. | |
On September 3, 2013, we sold all of the outstanding equity interests of a non-core business unit in the Supply Technologies segment for $8.5 million in cash, which resulted in a gain that is reflected within the income (loss) from discontinued operations, net of taxes, line of the consolidated statements of income. This business unit is a provider of high-quality machine to machine information technology solutions, products and services. The results of the business unit have been reported as discontinued operations in the financial statements. | |
Accounting Estimates | ' |
Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Cash Equivalents | ' |
Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |
Inventories | ' |
Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment: Property, plant and equipment are carried at cost. Additions and associated interest costs are capitalized and expenditures for repairs and maintenance are charged to operations. Depreciation of fixed assets is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 50 years for buildings, and one to 20 years for machinery and equipment. The Company reviews long-lived assets for impairment when events or changes in business conditions indicate that their full carrying value may not be recoverable. See Note 15. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets: We assess the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives, whenever events or changes in circumstances indicate that we may not be able to recover the assets’ carrying amount. We measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future undiscounted cash flows to be generated by that asset, or, for identifiable intangibles with finite useful lives, by determining whether the amortization of the intangible asset balance over its remaining life can be recovered through undiscounted future cash flows. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. We measure the amount of impairment of other long-lived assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair market value of the asset, which is generally determined, based on projected discounted future cash flows or appraised values. We classify long-lived assets to be disposed of other than by sale as held and used until they are disposed. | |
Goodwill and Indefinite-Lived Assets | ' |
Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other” (“ASC 350”), the Company does not amortize goodwill or indefinite-lived intangible assets recorded in connection with business acquisitions. | |
Goodwill and indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. | |
Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets, compared to the fair value. In accordance with Accounting Standard Update (“ASU”) 2011-08, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. We early adopted ASU 2011-08 for our October 1, 2011 annual goodwill impairment test. | |
In assessing the qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we identify and assess relevant drivers of fair value and events and circumstances that may impact the fair value and the carrying amount of the reporting unit. The identification of relevant events and circumstances and how these may impact a reporting unit’s fair value or carrying amount involve significant judgments and assumptions. The judgments and assumptions include the identification of macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, Company-specific events and share price trends, and the assessment of whether each relevant factor will impact the impairment test positively or negatively and the magnitude of any such impact. | |
If our qualitative assessment concludes that it is more likely than not that impairment exists then a quantitative assessment is required. In a quantitative assessment, we use an income approach and other valuation techniques to estimate the fair value of our reporting units. Absent an indication of fair value from a potential buyer or similar specific transactions, we believe that using this methodology provides reasonable estimates of a reporting unit’s fair value. The income approach is based on projected future debt-free cash flow that is discounted to present value using factors that consider the timing and risk of the future cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting unit’s expected long-term operating and cash flow performance. This approach also mitigates most of the impact of cyclical downturns that occur in the reporting unit’s industry. The income approach is based on a reporting unit’s projection of operating results and cash flows that is discounted using a weighted-average cost of capital. The projection is based upon our best estimates of projected economic and market conditions over the related period including growth rates, estimates of future expected changes in operating margins and cash expenditures. Other significant estimates and assumptions include terminal value growth rates, terminal value margin rates, future capital expenditures and changes in future working capital requirements based on management projections. There are inherent uncertainties, however, related to these factors and to our judgment in applying them to this analysis. Nonetheless, we believe that this method provides a reasonable approach to estimate the fair value of our reporting units. | |
The Company completed its annual goodwill impairment test for each year presented and confirmed no reporting unit was at risk of failing the impairment test for any periods presented herein. | |
Indefinite life intangible assets are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be a possible permanent loss of value in accordance with ASC 350. In accordance with ASU 2011-08, an entity may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the indefinite-lived intangible is less than its carrying value. When using a quantitative assessment, recoverability is measured by a comparison of the carrying amount to future undiscounted net cash flows to be generated which is estimated by management. Fair value is the basis for the measurement of any asset write-downs that are recorded. In conjunction with the recoverability analysis, management reviews the estimated remaining useful lives for appropriateness and considers adjusting the useful lives which may result in accelerated depreciation, which is included in cost of sales. Based on this quantitative analysis performed in 2012 and the qualitative factors analyzed in 2013, as mentioned above, management concluded that as of October 1, 2013, the indefinite-lived intangibles had fair values that exceeded their carrying values. As a result of this analysis, we concluded that no impairment existed. | |
Fair Values of Financial Instruments | ' |
Fair Values of Financial Instruments: Certain financial instruments are required to be recorded at fair value. The Company measures financial assets and liabilities at fair value in three levels of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: | |
Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. | |
Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. | |
Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. | |
Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 9) approximate fair value at December 31, 2013 and December 31, 2012. The fair values of long-term debt and pension plan assets are disclosed in Note 9 and Note 13, respectively. | |
The Company has not changed its valuation techniques for measuring fair value during 2013 and there were no transfers between levels during the periods presented. | |
Income Taxes | ' |
Income Taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and the tax bases of assets and liabilities and are measured using the current enacted tax rates. In determining these amounts, management determined the probability of realizing deferred tax assets, taking into consideration factors including historical operating results, cumulative earnings and losses, expectations of future earnings, taxable income and the extended period of time over which the postretirement benefits will be paid and accordingly records valuation allowances if, based on the weight of available evidence it is more likely than not that some portion or all of our deferred tax assets will not be realized as required by ASC 740, “Income Taxes” (“ASC 740”). | |
Stock-Based Compensation | ' |
Stock-Based Compensation: The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period. | |
Additional information regarding our share-based compensation program is provided in Note 11. | |
Revenue Recognition | ' |
Revenue Recognition: The Company recognizes revenue, other than from long-term contracts, when title is transferred to the customer, typically upon shipment. Revenue from long-term contracts (approximately 9% of consolidated revenue) is accounted for under the percentage of completion method, and recognized on the basis of the percentage each contract’s cost to date bears to the total estimated contract cost. Revenue earned on contracts in process that are in excess of billings, is classified in unbilled contract revenues in the accompanying consolidated balance sheet. Billings that are in excess of revenues earned on contracts in process are classified in accrued expenses in the accompanying balance sheet. | |
Cost of Sales | ' |
Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product, as well as manufacturing labor, depreciation expense and direct overhead expense necessary to acquire and convert the purchased materials and supplies into finished product. Cost of sales also includes the cost to distribute products to customers, inbound freight costs, internal transfer costs, warehousing costs and other shipping and handling activity. | |
Shipping and Handling Costs | ' |
Shipping and Handling Costs: All shipping and handling costs are included in cost of products sold in the Consolidated Statements of Income. | |
Accounts Receivable and Allowance for Doubtful Accounts | ' |
Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable are recorded at net realizable value. Accounts receivable are reduced by an allowance for amounts that may become uncollectable in the future. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history. During 2013 and 2012, we sold approximately $75.4 million and $76.8 million, respectively, of accounts receivable to mitigate accounts receivable concentration risk and to provide additional financing capacity. In compliance with ASC 860, “Transfers and Servicing”, sales of accounts receivable are reflected as a reduction of accounts receivable in the Consolidated Balance Sheets and the proceeds are included in the cash flows from operating activities in the Consolidated Statements of Cash flows. In 2013 and 2012, an expense in the amount of $0.4 million and $0.3 million, respectively, related to the discount on sale of accounts receivable is recorded in the Consolidated Statements of Income. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk: The Company sells its products to customers in diversified industries. The Company performs ongoing credit evaluations of its customers’ financial condition but does not require collateral to support customer receivables. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. As of December 31, 2013, the Company had uncollateralized receivables with four customers in the automotive industry, each with several locations, aggregating $24.2 million, which represented approximately 15% of the Company’s trade accounts receivable. During 2013, sales to these customers amounted to approximately $179.4 million, which represented approximately 15% of the Company’s net sales. | |
Environmental | ' |
Environmental: The Company accrues environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Costs that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company records a liability when environmental assessments and/or remedial efforts are probable and can be reasonably estimated. The estimated liability of the Company is not reduced for possible recoveries from insurance carriers. | |
Legal Contingencies | ' |
Legal Contingencies: We are involved in a variety of claims, suits, investigations and administrative proceedings with respect to commercial, premises liability, product liability, employment and environmental matters arising from the ordinary course of business. We accrue reserves for legal contingencies, on an undiscounted basis, when it is probable that we have incurred a liability and we can reasonably estimate an amount. When a single amount cannot be reasonably estimated, but the cost can be estimated within a range, we accrue the minimum amount in the range. Based upon facts and information currently available, we believe the amounts reserved are adequate for such pending matters. We monitor the development of legal proceedings on a regular basis and will adjust our reserves when, and to the extent, additional information becomes available. | |
Foreign Currency Translation | ' |
Foreign Currency Translation: The functional currency for a majority of subsidiaries outside the United States is the local currency. Financial statements for these subsidiaries are translated into U.S. dollars at year-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. The resulting translation adjustments are recorded in accumulated comprehensive income (loss) in shareholders’ equity. | |
Earnings Per Share | ' |
Earnings from continuing operations per common share is computed as net income from continuing operations less net income attributable to noncontrolling interests divided by the weighted average basic shares outstanding. Diluted earnings from continuing operations per common share is computed as net income from continuing operations less net income attributable to noncontrolling interests divided by the weighted average diluted shares outstanding. | |
Earnings (loss) from discontinued operations per common share is computed as income (loss) from discontinued operations, net of taxes divided by the weighted average basic shares outstanding. Diluted earnings (loss) from discontinued operations per common share is computed as income (loss) from discontinued operations, net of taxes divided by the weighted average diluted shares outstanding. | |
Total basic earnings per common share is computed as net income attributable to Park-Ohio common shareholders divided by the weighted average basic shares outstanding. Total diluted earnings per common share is computed as net income attributable to Park-Ohio common shareholders divided by the weighted average diluted shares outstanding. | |
Outstanding stock options with exercise prices greater than the average price of the common shares are anti-dilutive and are not included in the computation of diluted earnings per share. For the year ended December 31, 2013 and 2012, the anti-dilutive shares were insignificant. | |
New Accounting Pronouncements | ' |
Accounting Pronouncements Adopted | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income,” which requires entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This ASU is effective prospectively for reporting periods beginning after December 15, 2012. The updated standard affects the Company’s disclosures but has no impact on its results of operations, financial condition or liquidity. | |
Recent Accounting Pronouncements Not Yet Adopted | |
In February 2013, the FASB issued ASU 2013-04, “Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation is Fixed at the Reporting Date,” which requires entities to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date, as the sum of the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors plus additional amounts the reporting entity expects to pay on behalf of its co-obligors. Entities are also required to disclose the nature and amount of the obligation as well as other information about those obligations. This ASU is effective prospectively for reporting periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting this guidance. | |
In February 2013, the FASB issued ASU 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity,” requiring reporting entities that no longer have a controlling financial interest in a subsidiary or group of assets that is considered a business within a foreign entity, to release the cumulative translation adjustment into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. For equity method investments that are foreign entities, the partial sale requires a pro rata portion of the cumulative translation adjustment to be released into net income upon a partial sale of such an equity investment. However, for an equity method investment that is not a foreign entity, the release of the cumulative translation adjustment into net income is required only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Additionally, the amendments in this update clarify that the sale of an investment in a foreign entity requiring release into net income the cumulative translation adjustment upon the occurrence of events that includes (1) events that result in the loss of a controlling financial interest in a foreign entity and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. This ASU is effective prospectively for reporting periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting this guidance. | |
In July 2013, the FASB issued ASU 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” to eliminate diversity in practice. This ASU requires that companies net their unrecognized tax benefits against all same-jurisdiction net operating losses or tax credit carryforwards that would be used to settle the position with a tax authority. This new guidance is effective prospectively for annual reporting periods beginning on or after December 15, 2013 and interim periods therein. The adoption of this ASU will not have a material effect on our consolidated financial statements because it aligns with our current presentation. | |
Reclassification | ' |
Reclassification: Certain amounts in the prior years' financial statements have been reclassified to conform to the current year presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Major Classes of Inventories | ' | ||||||||
Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value. | |||||||||
Major Classes of Inventories | December 31, 2013 | December 31, 2012 | |||||||
(In millions) | |||||||||
Finished goods | $ | 114.7 | $ | 113 | |||||
Work in process | 30.3 | 27.9 | |||||||
Raw materials and supplies | 76.4 | 74.7 | |||||||
Inventories, net | $ | 221.4 | $ | 215.6 | |||||
Other inventory items | |||||||||
Inventory reserves | $ | 28.4 | $ | 27.2 | |||||
Consigned Inventory | $ | 6.6 | $ | 6.6 | |||||
Property, Plant and Equipment | ' | ||||||||
The following table summarizes property, plant and equipment at December 31, 2013 and December 31, 2012: | |||||||||
December 31, | December 31, | ||||||||
2013 | 2012 | ||||||||
Property, plant and equipment: | |||||||||
Land and land improvements | $ | 6.5 | $ | 5.7 | |||||
Buildings | 58.2 | 55.8 | |||||||
Machinery and equipment | 261.5 | 245.2 | |||||||
Total property, plant and equipment | 326.2 | 306.7 | |||||||
Less accumulated depreciation | 210.8 | 206.7 | |||||||
Net property, plant and equipment | $ | 115.4 | $ | 100 | |||||
Weighted-Average Number of Shares Used in Computing Earnings Per Share | ' | ||||||||
The following table sets forth the weighted-average number of shares used in the computation of earnings per share: | |||||||||
Year Ended December 31, | |||||||||
2013 | 2012 | 2011 | |||||||
(In whole shares) | |||||||||
Weighted average basic shares outstanding | 11,936,772 | 11,920,593 | 11,579,819 | ||||||
Plus dilutive impact of employee stock options | 295,393 | 195,836 | 419,042 | ||||||
Weighted average diluted shares outstanding | 12,232,165 | 12,116,429 | 11,998,861 | ||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Results by business segment | ' | |||||||||||
Results by business segment were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
Adjusted (1) | Adjusted (1) | |||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Net sales: | ||||||||||||
Supply Technologies | $ | 471.9 | $ | 483.8 | $ | 481.4 | ||||||
Assembly Components | 412.8 | 304 | 157.8 | |||||||||
Engineered Products | 318.5 | 340.4 | 322.2 | |||||||||
$ | 1,203.20 | $ | 1,128.20 | $ | 961.4 | |||||||
Segment operating income: | ||||||||||||
Supply Technologies | $ | 35.9 | $ | 37.9 | $ | 35.1 | ||||||
Assembly Components | 31.8 | 19.9 | 1.4 | |||||||||
Engineered Products | 47.1 | 55 | 45.3 | |||||||||
Total segment operating income | 114.8 | 112.8 | 81.8 | |||||||||
Corporate costs | (23.1 | ) | (18.9 | ) | (16.3 | ) | ||||||
Restructuring and asset impairment charges | — | — | (5.4 | ) | ||||||||
Litigation judgment and settlement costs | (5.2 | ) | (13.0 | ) | — | |||||||
Gain on acquisition of business | 0.6 | — | — | |||||||||
Interest expense | (26.8 | ) | (26.4 | ) | (32.2 | ) | ||||||
Income from continuing operations before income taxes | $ | 60.3 | $ | 54.5 | $ | 27.9 | ||||||
(1) Adjusted to reflect the discontinued operations. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Identifiable assets: | ||||||||||||
Supply Technologies | $ | 241.7 | $ | 207 | $ | 225.3 | ||||||
Assembly Components | 276.7 | 230 | 73.1 | |||||||||
Engineered Products | 183.1 | 199.4 | 195.8 | |||||||||
General corporate | 117.2 | 90.2 | 120.6 | |||||||||
$ | 818.7 | $ | 726.6 | $ | 614.8 | |||||||
Depreciation and amortization expense: | ||||||||||||
Supply Technologies | $ | 3 | $ | 3.9 | $ | 4.6 | ||||||
Assembly Components | 11.6 | 9.5 | 7.2 | |||||||||
Engineered Products | 3.4 | 3.2 | 3.9 | |||||||||
General corporate | 1.2 | 1.4 | 0.5 | |||||||||
$ | 19.2 | $ | 18 | $ | 16.2 | |||||||
Capital expenditures: | ||||||||||||
Supply Technologies | $ | 3.8 | $ | 1.6 | $ | 1.3 | ||||||
Assembly Components | 21.5 | 22.1 | 7.7 | |||||||||
Engineered Products | 3.6 | 3.1 | 0.9 | |||||||||
General corporate | 1.2 | 2.8 | 2.8 | |||||||||
$ | 30.1 | $ | 29.6 | $ | 12.7 | |||||||
Percentage of net sales by product line | ' | |||||||||||
The percentage of net sales by product line included in each segment was as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Supply Technologies: | ||||||||||||
Supply Technologies | 87 | % | 88 | % | 89 | % | ||||||
Engineered specialty products | 13 | % | 12 | % | 11 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Assembly Components: | ||||||||||||
Fluid routing | 54 | % | 50 | % | — | % | ||||||
Aluminum products | 37 | % | 39 | % | 81 | % | ||||||
Rubber and plastics | 7 | % | 9 | % | 15 | % | ||||||
Screw products | 2 | % | 2 | % | 4 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Engineered Products: | ||||||||||||
Industrial equipment business | 77 | % | 80 | % | 81 | % | ||||||
Forged and machined products | 23 | % | 20 | % | 19 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Approximate percentage of net sales by geographic region | ' | |||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Supply Technologies: | ||||||||||||
Supply Technologies | 87 | % | 88 | % | 89 | % | ||||||
Engineered specialty products | 13 | % | 12 | % | 11 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Assembly Components: | ||||||||||||
Fluid routing | 54 | % | 50 | % | — | % | ||||||
Aluminum products | 37 | % | 39 | % | 81 | % | ||||||
Rubber and plastics | 7 | % | 9 | % | 15 | % | ||||||
Screw products | 2 | % | 2 | % | 4 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
Engineered Products: | ||||||||||||
Industrial equipment business | 77 | % | 80 | % | 81 | % | ||||||
Forged and machined products | 23 | % | 20 | % | 19 | % | ||||||
100 | % | 100 | % | 100 | % | |||||||
The Company’s approximate percentage of net sales by geographic region was as follows: | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
United States | 74 | % | 77 | % | 76 | % | ||||||
Canada | 8 | % | 8 | % | 5 | % | ||||||
Mexico | 5 | % | 4 | % | 3 | % | ||||||
Asia | 6 | % | 6 | % | 9 | % | ||||||
Europe | 5 | % | 4 | % | 5 | % | ||||||
Other | 2 | % | 1 | % | 2 | % | ||||||
100 | % | 100 | % | 100 | % |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Allocation of purchase price | ' | |||||||
Based on management’s valuation of the fair value of tangible and intangible assets acquired and liabilities assumed, which are based on estimates and assumptions, the final purchase price is allocated as follows: | ||||||||
(In Millions) | ||||||||
Cash and cash equivalents | $ | 2.8 | ||||||
Accounts receivable | 30.9 | |||||||
Inventories | 12.4 | |||||||
Prepaid expenses and other current assets | 2.7 | |||||||
Property, plant and equipment | 30.2 | |||||||
Customer relationships | 29.4 | |||||||
Trademarks and trade name | 11.5 | |||||||
Other assets | 0.2 | |||||||
Accounts payable | (17.8 | ) | ||||||
Accrued expenses | (15.6 | ) | ||||||
Deferred tax liability | (26.4 | ) | ||||||
Other long-term liabilities | (0.8 | ) | ||||||
Goodwill | 39.3 | |||||||
Total purchase price | $ | 98.8 | ||||||
Pro forma information | ' | |||||||
The following unaudited pro forma information is provided to present a summary of the combined results of the Company’s operations with FRS as if the acquisition had occurred on January 1, 2011. The unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of what the results would have been had the acquisition been completed at the date indicated above. | ||||||||
Year Ended December 31, | ||||||||
2012 | 2011 | |||||||
(In millions) | ||||||||
Pro forma revenues | $ | 1,179.10 | $ | 1,146.90 | ||||
Pro forma net income | $ | 39.1 | $ | 39.4 | ||||
Dispositions_Tables
Dispositions (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Schedule of Select Financial Information Included in Discontinued Operations | ' | |||||||||||
The financial position of the discontinued operation was not significant. Select financial information included in discontinued operations were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Net sales | $ | 5.2 | $ | 5.8 | $ | 5.2 | ||||||
Loss from discontinued operations before tax | (1.3 | ) | (4.0 | ) | (3.7 | ) | ||||||
Income tax benefit from operations | 0.5 | 1.6 | 1.4 | |||||||||
Net loss from discontinued operations | (0.8 | ) | (2.4 | ) | (2.3 | ) | ||||||
Gain on sale of business before tax | 5.3 | — | — | |||||||||
Income tax expense from gain on sale of business | (1.5 | ) | — | — | ||||||||
Net gain on sale of business | 3.8 | — | — | |||||||||
Income (loss) from discontinued operations, net of taxes | $ | 3 | $ | (2.4 | ) | $ | (2.3 | ) | ||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||||||
Supply Technologies | Assembly Components | Engineered Products | Total | |||||||||||||
(In millions) | ||||||||||||||||
Balance at January 1, 2011 | $ | — | $ | 4.6 | $ | 4.5 | $ | 9.1 | ||||||||
Finalization of Pillar purchase price allocation | — | — | 0.4 | 0.4 | ||||||||||||
Balance at December 31, 2011 | — | 4.6 | 4.9 | 9.5 | ||||||||||||
Acquisitions | — | 40.2 | — | 40.2 | ||||||||||||
Balance at December 31, 2012 | — | 44.8 | 4.9 | 49.7 | ||||||||||||
Acquisitions | 6.2 | 4.2 | — | 10.4 | ||||||||||||
Foreign currency translation | 0.2 | — | 0.1 | 0.3 | ||||||||||||
Balance at December 31, 2013 | $ | 6.4 | $ | 49 | $ | 5 | $ | 60.4 | ||||||||
Other_Intangible_Assets_Tables
Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Schedule of other intangible assets | ' | |||||||||||||||||||||||||
Information regarding other intangible assets as of December 31, 2013 and December 31, 2012 follows: | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Weighted Average Useful Life | Acquisition | Accumulated | Net | Acquisition | Accumulated | Net | ||||||||||||||||||||
Costs | Amortization | Costs | Amortization | |||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Non-contractual customer relationships | 13.2 years | $ | 61.1 | $ | 8.7 | $ | 52.4 | $ | 41.7 | $ | 5.7 | $ | 36 | |||||||||||||
Other | 9.4 years | 3.9 | 1.8 | 2.1 | 3.4 | 1.3 | 2.1 | |||||||||||||||||||
$ | 65 | $ | 10.5 | $ | 54.5 | $ | 45.1 | $ | 7 | $ | 38.1 | |||||||||||||||
Indefinite-lived tradenames | 11.7 | 11.5 | ||||||||||||||||||||||||
Total | $ | 66.2 | $ | 49.6 | ||||||||||||||||||||||
Schedule of amortization of intangible assets | ' | |||||||||||||||||||||||||
Information regarding amortization expense of other intangible assets follows: | ||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
Amortization expense | $ | 3.5 | $ | 2.5 | $ | 1.4 | ||||||||||||||||||||
Amortization for the five years subsequent to December 31, 2013 | ' | |||||||||||||||||||||||||
Amortization expense for the five years subsequent to December 31, 2013 follows: | ||||||||||||||||||||||||||
Amortization Expense | ||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
2014 | $ | 4.5 | ||||||||||||||||||||||||
2015 | $ | 4.4 | ||||||||||||||||||||||||
2016 | $ | 4.3 | ||||||||||||||||||||||||
2017 | $ | 4.2 | ||||||||||||||||||||||||
2018 | $ | 4.1 | ||||||||||||||||||||||||
Other_LongTerm_Assets_Tables
Other Long-Term Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other assets | ' | |||||||
Other assets consists of the following: | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Pension assets | $ | 73.3 | $ | 52.9 | ||||
Deferred financing costs, net | 5.7 | 7 | ||||||
Other | 1.4 | 2.2 | ||||||
Total | $ | 80.4 | $ | 62.1 | ||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Payables and Accruals [Abstract] | ' | |||||||||||
Accrued expenses | ' | |||||||||||
Accrued expenses consists of the following: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Accrued salaries, wages and benefits | $ | 22.2 | $ | 20.1 | ||||||||
Advance billings | 20.4 | 27.2 | ||||||||||
Warranty accrual | 5.4 | 6.9 | ||||||||||
Interest payable | 5.6 | 5.5 | ||||||||||
Taxes, income and other | 2.9 | 6.1 | ||||||||||
Other | 23.4 | 17.8 | ||||||||||
Total | $ | 79.9 | $ | 83.6 | ||||||||
Changes in product warranty liability | ' | |||||||||||
The following table presents the changes in the Company’s product warranty liability for the years ended December 31, 2013, 2012, and 2011: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, | $ | 6.9 | $ | 4.2 | $ | 4 | ||||||
Claims paid during the year | (6.4 | ) | (6.0 | ) | (3.4 | ) | ||||||
Warranty expense | 4.9 | 5.4 | 3.6 | |||||||||
Acquired warranty liabilities | — | 3.3 | — | |||||||||
Balance at December 31, | $ | 5.4 | $ | 6.9 | $ | 4.2 | ||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term debt | ' | |||||||
Long-term debt consists of the following: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
(In millions) | ||||||||
8.125% Senior Notes due 2021 | $ | 250 | $ | 250 | ||||
Revolving credit | 111 | 101.9 | ||||||
Term loan | 18.7 | 22.3 | ||||||
Other | 3.9 | 4.4 | ||||||
Total debt | 383.6 | 378.6 | ||||||
Less current maturities | 4.4 | 4.4 | ||||||
Total long-term debt, net of current portion | $ | 379.2 | $ | 374.2 | ||||
Fair Value of Debt | ' | |||||||
The following table represents fair value information of the Company's 8.125% Senior Notes due 2021 at December 31, 2013 and 2012. The fair value was estimated based on quoted market prices, which is a Level 1 fair value input as defined in Note 1. | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
(In millions) | ||||||||
Carrying amount | $ | 250 | $ | 250 | ||||
Fair value | $ | 275.6 | $ | 266.3 | ||||
Maturities of Long-term Debt | ' | |||||||
Maturities of long-term debt during each of the five years subsequent to December 31, 2013 follows: | ||||||||
(In millions) | ||||||||
2014 | 4.4 | |||||||
2015 | 4.4 | |||||||
2016 | 123.4 | |||||||
2017 | 0.7 | |||||||
2018 | 0.5 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income from continuing operations before income tax expense | ' | |||||||||||
Income from continuing operations before income tax expense consists of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
United States | $ | 48.4 | $ | 39.1 | $ | 17.5 | ||||||
Outside the United States | 11.9 | 15.4 | 10.4 | |||||||||
$ | 60.3 | $ | 54.5 | $ | 27.9 | |||||||
Income Taxes | ' | |||||||||||
Income taxes consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Current expense (benefit): | ||||||||||||
Federal | $ | 16 | $ | 7.5 | $ | — | ||||||
State | 1.5 | 0.8 | 0.5 | |||||||||
Foreign | 4.2 | 4.4 | 7.1 | |||||||||
21.7 | 12.7 | 7.6 | ||||||||||
Deferred expense (benefit): | ||||||||||||
Federal | 1.2 | 7.5 | (8.3 | ) | ||||||||
State | (2.6 | ) | (0.2 | ) | (2.5 | ) | ||||||
Foreign | (0.9 | ) | 0.3 | (0.6 | ) | |||||||
(2.3 | ) | 7.6 | (11.4 | ) | ||||||||
Income tax expense (benefit) | $ | 19.4 | $ | 20.3 | $ | (3.8 | ) | |||||
Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates | ' | |||||||||||
The reasons for the difference between income tax expense and the amount computed by applying the statutory federal income tax rate to income from continuing operations before income taxes for the years ended December 31, 2013, 2012 and 2011 are as follows: | ||||||||||||
Rate Reconciliation | 2013 | 2012 | 2011 | |||||||||
(In millions) | ||||||||||||
Tax at statutory rate | $ | 21.1 | $ | 19.3 | $ | 9.9 | ||||||
Effect of state income taxes, net | 1.1 | 0.9 | 0.1 | |||||||||
Effect of foreign operations | (0.2 | ) | (0.1 | ) | 2.9 | |||||||
Valuation allowance | (1.6 | ) | (0.2 | ) | (16.8 | ) | ||||||
Non-deductible items | 0.7 | 0.6 | 0.4 | |||||||||
Manufacturer's deduction | (1.4 | ) | (0.6 | ) | — | |||||||
Other, net | (0.3 | ) | 0.4 | (0.3 | ) | |||||||
Total | $ | 19.4 | $ | 20.3 | $ | (3.8 | ) | |||||
Significant components of the Company's net deferred tax assets and liabilities | ' | |||||||||||
Significant components of the Company’s net deferred tax assets and liabilities are as follows: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Deferred tax assets: | ||||||||||||
Postretirement benefit obligation | $ | 5.9 | $ | 7 | ||||||||
Inventory | 13.2 | 11.5 | ||||||||||
Net operating loss and credit carryforwards | 3.8 | 5.3 | ||||||||||
Goodwill | 0.5 | 0.6 | ||||||||||
Other | 17.1 | 13.1 | ||||||||||
Total deferred tax assets | 40.5 | 37.5 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | 11.7 | 8.7 | ||||||||||
Inventory | 0.6 | 0.6 | ||||||||||
Pension | 26.4 | 19.2 | ||||||||||
Goodwill | 2.7 | — | ||||||||||
Intangible assets and other | 16.6 | 16.5 | ||||||||||
Total deferred tax liabilities | 58 | 45 | ||||||||||
Net deferred tax liabilities prior to valuation allowances | (17.5 | ) | (7.5 | ) | ||||||||
Valuation allowances | (2.6 | ) | (4.2 | ) | ||||||||
Net deferred tax liability | $ | (20.1 | ) | $ | (11.7 | ) | ||||||
Reconciliation of unrecognized tax benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Unrecognized Tax Benefit — January 1, | $ | 6.1 | $ | 6 | $ | 6.2 | ||||||
Gross Increases — Tax Positions in Prior Period | 0.4 | 0.1 | — | |||||||||
Gross Decreases — Tax Positions in Prior Period | (0.6 | ) | — | (0.1 | ) | |||||||
Gross Increases — Tax Positions in Current Period | — | 0.1 | 0.1 | |||||||||
Settlements | — | — | — | |||||||||
Lapse of Statute of Limitations | — | (0.1 | ) | (0.2 | ) | |||||||
Unrecognized Tax Benefit — December 31, | $ | 5.9 | $ | 6.1 | $ | 6 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Summary of Stock Option Activity | ' | |||||||||||||
A summary of stock option activity as of December 31, 2013 and changes during the year then ended is presented below: | ||||||||||||||
2013 | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(in whole shares) | (in millions) | |||||||||||||
Outstanding — beginning of year | 186,334 | 15.02 | ||||||||||||
Granted | — | — | ||||||||||||
Exercised | (40,334 | ) | 8.89 | |||||||||||
Canceled or expired | — | — | ||||||||||||
Outstanding — end of year | 146,000 | 16.71 | 2.7 years | $ | 5.2 | |||||||||
Options exercisable | 146,000 | 16.71 | 2.7 years | $ | 5.2 | |||||||||
Summary of Restricted Share Activity | ' | |||||||||||||
A summary of restricted share and performance share activity for the year ended December 31, 2013 is as follows: | ||||||||||||||
2013 | ||||||||||||||
Time-Based | Performance-Based | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Shares | Average | Shares | Average | |||||||||||
Grant Date | Grant Date | |||||||||||||
Fair Value | Fair Value | |||||||||||||
(in whole shares) | (in whole shares) | |||||||||||||
Outstanding — beginning of year | 385,168 | $ | 14.94 | 56,000 | $ | 20.3 | ||||||||
Granted | 212,050 | 30.37 | — | |||||||||||
Vested | (170,320 | ) | 18.86 | (14,000 | ) | 20.3 | ||||||||
Canceled or expired | (4,000 | ) | 21.59 | — | ||||||||||
Outstanding — end of year | 422,898 | $ | 21.04 | 42,000 | $ | 20.3 | ||||||||
Commitments_Contingencies_and_1
Commitments, Contingencies and Litigation Judgment (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Lease Commitments | ' | |||
Future minimum lease commitments during each of the five years following December 31, 2013 and thereafter are as follows: | ||||
(In millions) | ||||
2014 | $ | 13.5 | ||
2015 | 10.9 | |||
2016 | 9.4 | |||
2017 | 7.2 | |||
2018 | 5.1 | |||
Thereafter | 4 | |||
Pensions_and_Postretirement_Be1
Pensions and Postretirement Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||||||
Summary of change in defined benefit and postretirement benefit plans | ' | |||||||||||||||||||||||||||||||
The following tables set forth the change in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2013 and 2012: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Change in benefit obligation | ||||||||||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 56.4 | $ | 52.3 | $ | 18.5 | $ | 18.6 | ||||||||||||||||||||||||
Service cost | 2.6 | 2.2 | 0.1 | — | ||||||||||||||||||||||||||||
Interest cost | 2 | 2.2 | 0.6 | 0.8 | ||||||||||||||||||||||||||||
Actuarial (gains) losses | (4.4 | ) | 4.2 | (1.3 | ) | 1.1 | ||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.5 | ) | (4.5 | ) | (1.7 | ) | (2.0 | ) | ||||||||||||||||||||||||
Benefit obligation at end of year | $ | 52.1 | $ | 56.4 | $ | 16.2 | $ | 18.5 | ||||||||||||||||||||||||
Change in plan assets | ||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 109.4 | $ | 101.8 | $ | — | $ | — | ||||||||||||||||||||||||
Actual return on plan assets | 21.8 | 13.7 | — | — | ||||||||||||||||||||||||||||
Company contributions | — | — | 1.7 | 2 | ||||||||||||||||||||||||||||
Cash transfer to fund postretirement benefit payments | (1.3 | ) | (1.6 | ) | — | — | ||||||||||||||||||||||||||
Benefits and expenses paid, net of contributions | (4.5 | ) | (4.5 | ) | (1.7 | ) | (2.0 | ) | ||||||||||||||||||||||||
Fair value of plan assets at end of year | $ | 125.4 | $ | 109.4 | $ | — | $ | — | ||||||||||||||||||||||||
Funded (underfunded) status of the plans | $ | 73.3 | $ | 53 | $ | (16.2 | ) | $ | (18.5 | ) | ||||||||||||||||||||||
Amounts recognized in the consolidated balance sheets consist of: | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Noncurrent assets | $ | 73.3 | $ | 53 | $ | — | $ | — | ||||||||||||||||||||||||
Noncurrent liabilities | — | — | 14.5 | 16.6 | ||||||||||||||||||||||||||||
Current liabilities | — | — | 1.7 | 1.9 | ||||||||||||||||||||||||||||
$ | 73.3 | $ | 53 | $ | 16.2 | $ | 18.5 | |||||||||||||||||||||||||
Amounts recognized in accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||
Net actuarial loss | $ | 2.1 | $ | 20.3 | $ | 6.3 | $ | 8.2 | ||||||||||||||||||||||||
Net prior service cost (credit) | 0.1 | 0.1 | (0.5 | ) | (0.6 | ) | ||||||||||||||||||||||||||
Net transition (asset) | — | (0.1 | ) | — | — | |||||||||||||||||||||||||||
Accumulated other comprehensive loss | $ | 2.2 | $ | 20.3 | $ | 5.8 | $ | 7.6 | ||||||||||||||||||||||||
Summary of Pension Plan Weighted-Average Asset Allocation | ' | |||||||||||||||||||||||||||||||
The pension plan weighted-average asset allocation at December 31, 2013 and 2012 and target allocation for 2014 are as follows: | ||||||||||||||||||||||||||||||||
Plan Assets | ||||||||||||||||||||||||||||||||
Target 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Asset Category | ||||||||||||||||||||||||||||||||
Equity securities | 45-75% | 67.2 | % | 64.4 | % | |||||||||||||||||||||||||||
Debt securities | 10-40 | 25.4 | % | 27.8 | % | |||||||||||||||||||||||||||
Other | 0-20 | 7.4 | % | 7.8 | % | |||||||||||||||||||||||||||
100% | 100 | % | 100 | % | ||||||||||||||||||||||||||||
Schedule of Fair Value Hierarchy of Pension Plans Assets | ' | |||||||||||||||||||||||||||||||
The following table sets forth, by level within the fair value hierarchy, the pension plans assets: | ||||||||||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Collective trust and pooled insurance funds: | ||||||||||||||||||||||||||||||||
Common stock | $ | 48.3 | $ | 2.5 | $ | — | $ | 50.8 | $ | 40.1 | $ | 2.5 | $ | — | $ | 42.6 | ||||||||||||||||
Equity Funds | 26.9 | — | — | 26.9 | 23.9 | — | — | 23.9 | ||||||||||||||||||||||||
Foreign Stock | 5.6 | — | — | 5.6 | 4.1 | — | — | 4.1 | ||||||||||||||||||||||||
U.S. Government obligations | 5.1 | — | — | 5.1 | 6.5 | — | — | 6.5 | ||||||||||||||||||||||||
Fixed income funds | 18.8 | — | — | 18.8 | 17.1 | — | — | 17.1 | ||||||||||||||||||||||||
Balanced funds | 2.1 | — | — | 2.1 | — | — | — | — | ||||||||||||||||||||||||
Corporate Bonds | 6.8 | — | — | 6.8 | 6.8 | — | — | 6.8 | ||||||||||||||||||||||||
Cash and Cash Equivalents | 2 | — | — | 2 | 2 | — | — | 2 | ||||||||||||||||||||||||
Hedge funds | — | — | 7.3 | 7.3 | — | — | 6.4 | 6.4 | ||||||||||||||||||||||||
$ | 115.6 | $ | 2.5 | $ | 7.3 | $ | 125.4 | $ | 100.5 | $ | 2.5 | $ | 6.4 | $ | 109.4 | |||||||||||||||||
Summary of Reconciliation of Level 3 Assets Held | ' | |||||||||||||||||||||||||||||||
The following table presents a reconciliation of Level 3 assets, as defined in Note 1, held during the years ended December 31, 2013 and 2012. | ||||||||||||||||||||||||||||||||
Balance at | Net Unrealized | Purchases | Balance at | |||||||||||||||||||||||||||||
Beginning of Year | Gain | End of Year | ||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Hedge Funds: | ||||||||||||||||||||||||||||||||
2013 | $ | 6.4 | $ | 0.9 | $ | — | $ | 7.3 | ||||||||||||||||||||||||
2012 | $ | 5.9 | $ | 0.5 | $ | — | $ | 6.4 | ||||||||||||||||||||||||
Summary of Assumptions Used in the valuation of pension and postretirement benefit obligations | ' | |||||||||||||||||||||||||||||||
The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31, and to measure the net periodic benefit cost in the following year. | ||||||||||||||||||||||||||||||||
Weighted-Average assumptions as of December 31, | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Discount rate | 4.51 | % | 3.66 | % | 4.5 | % | 4.21 | % | 3.35 | % | 4.5 | % | ||||||||||||||||||||
Expected return on plan assets | 8.25 | % | 8.25 | % | 8.25 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Rate of compensation increase | 2 | % | 2 | % | 2 | % | N/A | N/A | N/A | |||||||||||||||||||||||
Medical health care benefits rate increase | N/A | N/A | N/A | 6.5 | % | 7 | % | 6.5 | % | |||||||||||||||||||||||
Medical drug benefits rate increase | N/A | N/A | N/A | 6.5 | % | 7.25 | % | 8 | % | |||||||||||||||||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | 5 | % | 5 | % | 5 | % | |||||||||||||||||||||||
Year of ultimate trend rate | N/A | N/A | N/A | 2042 | 2042 | 2042 | ||||||||||||||||||||||||||
Summary of Components of Net Periodic Benefit Cost | ' | |||||||||||||||||||||||||||||||
In determining its expected return on plan assets assumption for the year ended December 31, 2013, the Company considered historical experience, its asset allocation, expected future long-term rates of return for each major asset class, and an assumed long-term inflation rate. Based on these factors, the Company derived an expected return on plan assets for the year ended December 31, 2013 of 8.25%. This assumption was supported by the asset return generation model, which projected future asset returns using simulation and asset class correlation. | ||||||||||||||||||||||||||||||||
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Components of net periodic benefit cost | ||||||||||||||||||||||||||||||||
Service costs | $ | 2.6 | $ | 2.2 | $ | 1.6 | $ | 0.1 | $ | — | $ | 0.1 | ||||||||||||||||||||
Interest costs | 2 | 2.2 | 2.3 | 0.6 | 0.8 | 0.9 | ||||||||||||||||||||||||||
Expected return on plan assets | (8.9 | ) | (8.2 | ) | (8.9 | ) | — | — | — | |||||||||||||||||||||||
Amortization of prior service credit | — | — | — | (0.1 | ) | (0.1 | ) | (0.1 | ) | |||||||||||||||||||||||
Recognized net actuarial loss | 0.8 | 0.9 | — | 0.7 | 0.7 | 0.4 | ||||||||||||||||||||||||||
Benefit (income) costs | $ | (3.5 | ) | $ | (2.9 | ) | $ | (5.0 | ) | $ | 1.3 | $ | 1.4 | $ | 1.3 | |||||||||||||||||
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | ||||||||||||||||||||||||||||||||
AOCI at beginning of year | $ | 20.3 | $ | 22.4 | $ | 7.7 | $ | 7.6 | $ | 7.1 | $ | 6.1 | ||||||||||||||||||||
Net (gain) loss arising during the year | (17.3 | ) | (1.2 | ) | 14.7 | (1.2 | ) | 1.1 | 1.3 | |||||||||||||||||||||||
Recognition of prior service credit | — | — | — | 0.1 | 0.1 | 0.1 | ||||||||||||||||||||||||||
Recognition of actuarial loss | (0.8 | ) | (0.9 | ) | — | (0.7 | ) | (0.7 | ) | (0.4 | ) | |||||||||||||||||||||
Total recognized in accumulated other comprehensive loss at end of year | $ | 2.2 | $ | 20.3 | $ | 22.4 | $ | 5.8 | $ | 7.6 | $ | 7.1 | ||||||||||||||||||||
Summary Company's Expected Future Benefit Payments | ' | |||||||||||||||||||||||||||||||
Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years: | ||||||||||||||||||||||||||||||||
Postretirement Benefits | ||||||||||||||||||||||||||||||||
Pension Benefits | Gross | Expected | Net including | |||||||||||||||||||||||||||||
Medicare Subsidy | Medicare Subsidy | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
2014 | $ | 4.2 | $ | 1.9 | $ | 0.2 | $ | 1.7 | ||||||||||||||||||||||||
2015 | 4.2 | 1.8 | 0.2 | 1.6 | ||||||||||||||||||||||||||||
2016 | 4.1 | 1.7 | 0.2 | 1.5 | ||||||||||||||||||||||||||||
2017 | 4.3 | 1.6 | 0.2 | 1.4 | ||||||||||||||||||||||||||||
2018 | 4.2 | 1.5 | 0.1 | 1.4 | ||||||||||||||||||||||||||||
2019 to 2023 | 21.9 | 6.2 | 0.6 | 5.6 | ||||||||||||||||||||||||||||
Summary of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rate | ' | |||||||||||||||||||||||||||||||
A one-percentage-point change in the assumed health care cost trend rate would have the following effects: | ||||||||||||||||||||||||||||||||
1-Percentage | 1-Percentage | |||||||||||||||||||||||||||||||
Point | Point | |||||||||||||||||||||||||||||||
Increase | Decrease | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Effect on total of service and interest cost components in 2013 | $ | 0.1 | $ | — | ||||||||||||||||||||||||||||
Effect on postretirement benefit obligation as of December 31, 2013 | $ | 1.3 | $ | (1.1 | ) | |||||||||||||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Changes in accumulated comprehensive income (loss) | ' | |||||||||||
The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2013, 2012, and 2011 were as follows: | ||||||||||||
Cumulative Translation Adjustment | Pension and Postretirement Benefits | Total | ||||||||||
(In millions) | ||||||||||||
Balance at January 1, 2011 | $ | 6.2 | $ | (3.8 | ) | $ | 2.4 | |||||
Foreign currency translation adjustments (a) | (1.4 | ) | — | (1.4 | ) | |||||||
Loss arising during the year | — | (16.0 | ) | (16.0 | ) | |||||||
Tax adjustment (c) | — | 6.4 | 6.4 | |||||||||
Net loss arising during the year | — | (9.6 | ) | (9.6 | ) | |||||||
Recognition of actuarial gain (b) | — | 0.4 | 0.4 | |||||||||
Tax adjustment (c) | — | (0.2 | ) | (0.2 | ) | |||||||
Recognition of actuarial gain, net | — | 0.2 | 0.2 | |||||||||
Balance at December 31, 2011 | 4.8 | (13.2 | ) | (8.4 | ) | |||||||
Foreign currency translation adjustments (a) | 0.6 | — | 0.6 | |||||||||
Recognition of actuarial gain, net (b) | — | 1.6 | 1.6 | |||||||||
Tax adjustment (c) | — | (0.6 | ) | (0.6 | ) | |||||||
Recognition of actuarial gain, net | — | 1 | 1 | |||||||||
Balance at December 31, 2012 | 5.4 | (12.2 | ) | (6.8 | ) | |||||||
Foreign currency translation adjustments (a) | (2.6 | ) | — | (2.6 | ) | |||||||
Recognition of actuarial gain, net (b) | — | 19.9 | 19.9 | |||||||||
Tax adjustment (c) | — | (7.1 | ) | (7.1 | ) | |||||||
Recognition of actuarial gain, net | — | 12.8 | 12.8 | |||||||||
Balance at December 31, 2013 | $ | 2.8 | $ | 0.6 | $ | 3.4 | ||||||
(a) | No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. | |||||||||||
(b) | The recognition of actuarial gains are reclassified out of accumulated other comprehensive income and included in the computation of net periodic benefit cost in selling, general and administrative expenses. | |||||||||||
(c) | The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expenses. |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Data | ' | |||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ||||||||||||||||
Quarter Ended | ||||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | |||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||
2013 | ||||||||||||||||
Net sales | $ | 283 | $ | 307.3 | $ | 303.5 | $ | 309.4 | ||||||||
Gross profit | 51.6 | 57.5 | 54.6 | 47.3 | ||||||||||||
Net income from continuing operations | 10.7 | 12.1 | 8.7 | 9.4 | ||||||||||||
Income (loss) from discontinued operations, net of taxes | (0.4 | ) | (0.1 | ) | 3.7 | (0.2 | ) | |||||||||
Net income attributable to noncontrolling interest | — | — | (0.2 | ) | (0.3 | ) | ||||||||||
Net income attributable to ParkOhio common shareholders | $ | 10.3 | $ | 12 | $ | 12.2 | $ | 8.9 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Basic: | ||||||||||||||||
Continuing operations | $ | 0.9 | $ | 1.02 | $ | 0.71 | $ | 0.76 | ||||||||
Discontinued operations | (0.03 | ) | (0.01 | ) | 0.31 | (0.02 | ) | |||||||||
Total | $ | 0.87 | $ | 1.01 | $ | 1.02 | $ | 0.74 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Diluted: | ||||||||||||||||
Continuing operations | $ | 0.88 | $ | 0.99 | $ | 0.69 | $ | 0.74 | ||||||||
Discontinued operations | (0.03 | ) | (0.01 | ) | 0.3 | (0.02 | ) | |||||||||
Total | $ | 0.85 | $ | 0.98 | $ | 0.99 | $ | 0.72 | ||||||||
2012 | ||||||||||||||||
Net sales | $ | 261.7 | $ | 307.3 | $ | 285.2 | $ | 274 | ||||||||
Gross profit | 49 | 55.9 | 54.2 | 48.2 | ||||||||||||
Net income from continuing operations | 9.6 | 5 | 11.4 | 8.2 | ||||||||||||
Loss from discontinued operations, net of taxes | (0.6 | ) | (0.6 | ) | (0.7 | ) | (0.5 | ) | ||||||||
Net income attributable to ParkOhio common shareholders | $ | 9 | $ | 4.4 | $ | 10.7 | $ | 7.7 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Basic: | ||||||||||||||||
Continuing operations | $ | 0.81 | $ | 0.42 | $ | 0.95 | $ | 0.68 | ||||||||
Discontinued operations | (0.05 | ) | (0.05 | ) | (0.06 | ) | (0.04 | ) | ||||||||
Total | $ | 0.76 | $ | 0.37 | $ | 0.89 | $ | 0.64 | ||||||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Diluted: | ||||||||||||||||
Continuing operations | $ | 0.79 | $ | 0.42 | $ | 0.94 | $ | 0.67 | ||||||||
Discontinued operations | (0.05 | ) | (0.05 | ) | (0.06 | ) | (0.04 | ) | ||||||||
Total | $ | 0.74 | $ | 0.37 | $ | 0.88 | $ | 0.63 | ||||||||
Note A — | In the second quarter of 2013, the Company completed the acquisition of substantially all of the assets of Bates, a manufacturer of extruded, formed and molded products and is included in our Assembly Components segment. | |||||||||||||||
Note B — | Effective August 1, 2013, the Company sold a 25% interest in its Southwest Steel Processing business. | |||||||||||||||
Note C — | On September 3, 2013, the Company sold all of the outstanding equity interests of a non-core business unit in the Supply Technologies segment for $8.5 million in cash. The results of this business unit are reported as discontinued operations and prior periods are adjusted to reflect the discontinued operation. | |||||||||||||||
Note D — | In September 2013, the Company recorded a $5.2 million pre-tax litigation judgment. | |||||||||||||||
Note E — | During the fourth quarter of 2013, the Company acquired the outstanding capital stock of Henry Halstead and QEF. Both companies are providers of supply chain management solutions. | |||||||||||||||
Note F — | In the first quarter of 2012, the Company completed the acquisition of FRS, a leading manufacturer of industrial rubber and thermoplastic hose products and fuel filler and hydraulic fluid assemblies for the automotive and industrial industries, in an all cash transaction for approximately $98.8 million. | |||||||||||||||
Note G — | In the second quarter of 2012, the Company entered into a settlement agreement with a customer pursuant to which it agreed to settle all claims subject to an arbitration agreement by paying the customer $13.0 million in cash. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 03, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Customer | Non-core Business Unit | Building [Member] | Building [Member] | Machinery and Equipment [Member] | Machinery and Equipment [Member] | ||
Discontinued Operations | Minimum | Maximum | Minimum | Maximum | |||
Supply Technologies [Member] | |||||||
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Proceeds from sale of non-core business unit | ' | ' | $8.50 | ' | ' | ' | ' |
Highly liquid investments maturity description | 'three months or less | ' | ' | ' | ' | ' | ' |
Property, plant and equipment, useful life | ' | ' | ' | '5 years | '50 years | '1 year | '20 years |
Percentage of revenue from long-term contracts | 9.00% | ' | ' | ' | ' | ' | ' |
Sale of accounts receivable | 75.4 | 76.8 | ' | ' | ' | ' | ' |
Expense related to discount on sale of accounts receivable | -0.4 | -0.3 | ' | ' | ' | ' | ' |
Number of customers with uncollateralized accounts receivable in automotive industry | 4 | ' | ' | ' | ' | ' | ' |
Uncollateralized accounts receivable | 24.2 | ' | ' | ' | ' | ' | ' |
Percentage of accounts receivable uncollateralized | 15.00% | ' | ' | ' | ' | ' | ' |
Revenue from sales to major customers | $179.40 | ' | ' | ' | ' | ' | ' |
Percentage of revenue from sales to major customers | 15.00% | ' | ' | ' | ' | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Major Classes of Inventories) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Major Classes of Inventories | ' | ' | |
Finished goods | $114.70 | $113 | |
Work in process | 30.3 | 27.9 | |
Raw materials and supplies | 76.4 | 74.7 | |
Inventories, net | 221.4 | 215.6 | [1] |
Inventory reserves | 28.4 | 27.2 | |
Consigned Inventory | $6.60 | $6.60 | |
[1] | Adjusted to reflect the discontinued operations. |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Accounting Policies [Abstract] | ' | ' | |
Land and land improvements | $6.50 | $5.70 | |
Buildings | 58.2 | 55.8 | |
Machinery and equipment | 261.5 | 245.2 | |
Total property, plant and equipment | 326.2 | 306.7 | |
Less accumulated depreciation | 210.8 | 206.7 | |
Net property, plant and equipment | $115.40 | $100 | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Weighted-Average Number of Shares Used in Computing Earnings Per Share (Details) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Accounting Policies [Abstract] | ' | ' | ' | ||
Weighted average basic shares outstanding | 11,936,772 | 11,920,593 | [1] | 11,579,819 | [1] |
Plus dilutive impact of employee stock options | 295,393 | 195,836 | 419,042 | ||
Weighted average diluted shares outstanding | 12,232,165 | 12,116,429 | [1] | 11,998,861 | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Segments_Details
Segments (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Number of reportable segments | 3 | ' | ' |
United States | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Percentage of assets | 77.00% | 81.00% | 68.00% |
Segments_Schedule_of_Segment_I
Segments (Schedule of Segment Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Net sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | $309.40 | $303.50 | $307.30 | $283 | $274 | $285.20 | $307.30 | $261.70 | ' | $1,203.20 | [1] | $1,128.20 | [1] | $961.40 | [1] | |
Segment operating income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 86.5 | 80.9 | [1] | 60.1 | [1] | ||
Corporate costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | -23.1 | [1] | -18.9 | [1] | -16.3 | [1] | |
Restructuring and asset impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | -5.4 | 0 | [1] | 0 | [1] | -5.4 | [1] | |
Litigation judgment and settlement costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5.2 | [1] | -13 | [1] | 0 | [1] | |
Gain on acquisition of business | ' | 0.6 | ' | ' | ' | ' | ' | ' | ' | 0.6 | [1] | 0 | [1] | 0 | [1] | |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -26.8 | [1] | -26.4 | [1] | -32.2 | [1] | |
Income from continuing operations before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.3 | [1] | 54.5 | [1] | 27.9 | [1] | |
Identifiable assets | 818.7 | ' | ' | ' | 726.6 | [1] | ' | ' | ' | ' | 818.7 | 726.6 | [1] | 614.8 | ||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19.2 | 18 | 16.2 | ||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.1 | 29.6 | 12.7 | ||||
Supply Technologies | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 471.9 | [1] | 483.8 | [1] | 481.4 | [1] | |
Segment operating income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.9 | [1] | 37.9 | [1] | 35.1 | [1] | |
Identifiable assets | 241.7 | ' | ' | ' | 207 | ' | ' | ' | ' | 241.7 | 207 | 225.3 | ||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 3.9 | 4.6 | ||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.8 | 1.6 | 1.3 | ||||
Assembly Components | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 412.8 | [1] | 304 | [1] | 157.8 | [1] | |
Segment operating income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.8 | [1] | 19.9 | [1] | 1.4 | [1] | |
Identifiable assets | 276.7 | ' | ' | ' | 230 | ' | ' | ' | ' | 276.7 | 230 | 73.1 | ||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11.6 | 9.5 | 7.2 | ||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21.5 | 22.1 | 7.7 | ||||
Engineered Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | 318.5 | [1] | 340.4 | [1] | 322.2 | [1] | |
Segment operating income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 47.1 | [1] | 55 | [1] | 45.3 | [1] | |
Identifiable assets | 183.1 | ' | ' | ' | 199.4 | ' | ' | ' | ' | 183.1 | 199.4 | 195.8 | ||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.4 | 3.2 | 3.9 | ||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.6 | 3.1 | 0.9 | ||||
General Corporate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment operating income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Identifiable assets | 117.2 | ' | ' | ' | 90.2 | ' | ' | ' | ' | 117.2 | 90.2 | 120.6 | ||||
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 1.4 | 0.5 | ||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 2.8 | 2.8 | ||||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Segment operating income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total segment operating income | ' | ' | ' | ' | ' | ' | ' | ' | ' | $114.80 | [1] | $112.80 | [1] | $81.80 | [1] | |
[1] | Adjusted to reflect the discontinued operations. |
Segments_Percentage_of_Net_Sal
Segments (Percentage of Net Sales by Product Line) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Supply Technologies | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Supply Technologies | Supply Technologies Product | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 87.00% | 88.00% | 89.00% |
Supply Technologies | Engineered Specialty Products | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 13.00% | 12.00% | 11.00% |
Aluminum Products | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Aluminum Products | Fluid Routing | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 54.00% | 50.00% | 0.00% |
Aluminum Products | Aluminum Primary Products | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 37.00% | 39.00% | 81.00% |
Aluminum Products | Rubber And Plastics | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 7.00% | 9.00% | 15.00% |
Aluminum Products | Screw Products | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 2.00% | 2.00% | 4.00% |
Engineered Products | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 100.00% | 100.00% | 100.00% |
Engineered Products | Capital Equipment | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 77.00% | 80.00% | 81.00% |
Engineered Products | Forged and Machined Products | ' | ' | ' |
Product Information [Line Items] | ' | ' | ' |
Percentage of net sales | 23.00% | 20.00% | 19.00% |
Segments_Companys_approximate_
Segments (Companybs approximate percentage of net sales by geographic region) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Percentage of net sales | 100.00% | 100.00% | 100.00% |
United States | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Percentage of net sales | 74.00% | 77.00% | 76.00% |
Canada | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Percentage of net sales | 8.00% | 8.00% | 5.00% |
Mexico | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Percentage of net sales | 5.00% | 4.00% | 3.00% |
Asia | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Percentage of net sales | 6.00% | 6.00% | 9.00% |
Europe | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Percentage of net sales | 5.00% | 4.00% | 5.00% |
Other | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' |
Percentage of net sales | 2.00% | 1.00% | 2.00% |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 23, 2012 | Nov. 01, 2013 | Apr. 26, 2013 | Mar. 23, 2012 | Dec. 31, 2012 | Mar. 23, 2012 | Mar. 23, 2012 | Nov. 30, 2012 | Dec. 31, 2012 | Mar. 31, 2013 | |||
QEF Global Limited | QEF Global Limited and Henry Halstead Ltd. | Bates Rubber | Fluid Routing Solutions Holding Corp | Fluid Routing Solutions Holding Corp | Fluid Routing Solutions Holding Corp | Fluid Routing Solutions Holding Corp | Elastomeros Tecnicos Moldeados Inc | QEF Global Limited | Henry Halstead Ltd. | |||||||||
Facility | Facility | Term loan | Revolving credit facility | |||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
NumberOfLogisticsFacilitiesHeldByAcquiree | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14 | $24 | |||
Payment for acquisition | ' | ' | ' | ' | ' | ' | 25.8 | ' | 40 | ' | ' | ' | ' | ' | ' | |||
Gain on acquisition of business | 0.6 | 0.6 | [1] | 0 | [1] | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, purchase price | ' | 45.8 | 97 | 0 | ' | ' | ' | 20.8 | 98.8 | ' | ' | ' | 1.1 | ' | ' | |||
Number of production facilities held by acquiree | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | |||
Revenues attributable to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 152.4 | ' | ' | ' | ' | ' | |||
Net income attributable to acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.1 | ' | ' | ' | ' | ' | |||
Funding of acquisition, liabilities incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | 33.8 | ' | ' | ' | |||
Term loan, period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | |||
Funding of acquisition, promissory notes payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | ' | ' | |||
Annual payment due in each of the next four years if certain earnings levels achieved | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | ' | ' | |||
Goodwill | ' | $60.40 | $49.70 | [1] | $9.50 | $9.10 | ' | ' | ' | $39.30 | ' | ' | ' | $0.90 | ' | ' | ||
[1] | Adjusted to reflect the discontinued operations. |
Acquisitions_Purchase_Price_Al
Acquisitions (Purchase Price Allocation) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Mar. 23, 2012 | |
In Millions, unless otherwise specified | Fluid Routing Solutions Holding Corp | |||||
Allocation of purchase price | ' | ' | ' | ' | ' | |
Cash and cash equivalents | ' | ' | ' | ' | $2.80 | |
Accounts receivable | ' | ' | ' | ' | 30.9 | |
Inventories | ' | ' | ' | ' | 12.4 | |
Prepaid expenses and other current assets | ' | ' | ' | ' | 2.7 | |
Property, plant and equipment | ' | ' | ' | ' | 30.2 | |
Customer relationships | ' | ' | ' | ' | 29.4 | |
Trademarks and trade name | ' | ' | ' | ' | 11.5 | |
Other assets | ' | ' | ' | ' | 0.2 | |
Accounts payable | ' | ' | ' | ' | -17.8 | |
Accrued expenses | ' | ' | ' | ' | -15.6 | |
Deferred tax liability | ' | ' | ' | ' | -26.4 | |
Other long-term liabilities | ' | ' | ' | ' | -0.8 | |
Goodwill | 60.4 | 49.7 | [1] | 9.5 | 9.1 | 39.3 |
Total purchase price | ' | ' | ' | ' | $98.80 | |
[1] | Adjusted to reflect the discontinued operations. |
Acquisitions_Pro_Forma_Informa
Acquisitions (Pro Forma Information) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Pro forma information of Acquisition | ' | ' |
Pro forma revenues | $1,179.10 | $1,146.90 |
Pro forma net income | $39.10 | $39.40 |
Dispositions_Details
Dispositions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 03, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2013 | ||
Supply Technologies | Supply Technologies | Supply Technologies | Supply Technologies | Southwest Steel Processing LLC [Member] | ||||||||||||||
Discontinued Operations | Discontinued Operations | Discontinued Operations | Discontinued Operations | |||||||||||||||
Non-core Business Unit | Non-core Business Unit | Non-core Business Unit | Non-core Business Unit | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Proceeds from sale of non-core business unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8.50 | ' | ' | ' | ' | ||
Select financial information of discontinued operations: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.2 | 5.8 | 5.2 | ' | ||
Loss from discontinued operations before tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1.3 | -4 | -3.7 | ' | ||
Income tax benefit from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 1.6 | 1.4 | ' | ||
Net loss from discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -0.8 | -2.4 | -2.3 | ' | ||
Gain on sale of business before tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.3 | 0 | 0 | ' | ||
Income tax expense from gain on sale of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1.5 | 0 | 0 | ' | ||
Net gain on sale of business | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.8 | 0 | 0 | ' | ||
Income (loss) from discontinued operations, net of taxes | -0.2 | 3.7 | -0.1 | -0.4 | -0.5 | -0.7 | -0.6 | -0.6 | 3 | -2.4 | [1] | -2.3 | [1] | ' | 3 | -2.4 | -2.3 | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ||
Proceeds from Noncontrolling Interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 | ||
[1] | Adjusted to reflect the discontinued operations. |
Goodwill_Change_in_Goodwill_De
Goodwill (Change in Goodwill) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | $49.70 | [1] | $9.50 | $9.10 | |
Finalization of Pillar purchase price allocation | ' | ' | 0.4 | ||
Foreign currency translation | 0.3 | ' | ' | ||
Acquisitions | 10.4 | 40.2 | ' | ||
Goodwill, end of period | 60.4 | 49.7 | [1] | 9.5 | |
Supply Technologies | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | 0 | 0 | 0 | ||
Finalization of Pillar purchase price allocation | ' | ' | 0 | ||
Foreign currency translation | 0.2 | ' | ' | ||
Acquisitions | 6.2 | 0 | ' | ||
Goodwill, end of period | 6.4 | 0 | 0 | ||
Assembly Components | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | 44.8 | 4.6 | 4.6 | ||
Finalization of Pillar purchase price allocation | ' | ' | 0 | ||
Foreign currency translation | 0 | ' | ' | ||
Acquisitions | 4.2 | 40.2 | ' | ||
Goodwill, end of period | 49 | 44.8 | 4.6 | ||
Engineered Products | ' | ' | ' | ||
Goodwill [Roll Forward] | ' | ' | ' | ||
Goodwill, beginning of period | 4.9 | 4.9 | 4.5 | ||
Finalization of Pillar purchase price allocation | ' | ' | 0.4 | ||
Foreign currency translation | 0.1 | ' | ' | ||
Acquisitions | 0 | 0 | ' | ||
Goodwill, end of period | $5 | $4.90 | $4.90 | ||
[1] | Adjusted to reflect the discontinued operations. |
Other_Intangible_Assets_Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Details of other intangible assets | ' | ' | |
Acquisition Costs | $65 | $45.10 | |
Accumulated Amortization | 10.5 | 7 | |
Net | 54.5 | 38.1 | |
Total | 66.2 | 49.6 | [1] |
Tradenames | ' | ' | |
Details of other intangible assets | ' | ' | |
Indefinite-lived tradenames | 11.7 | 11.5 | |
Non-contractual customer relationships | ' | ' | |
Details of other intangible assets | ' | ' | |
Weighted Average Useful Life | '13 years 2 months 12 days | ' | |
Acquisition Costs | 61.1 | 41.7 | |
Accumulated Amortization | 8.7 | 5.7 | |
Net | 52.4 | 36 | |
Other | ' | ' | |
Details of other intangible assets | ' | ' | |
Weighted Average Useful Life | '9 years 4 months 24 days | ' | |
Acquisition Costs | 3.9 | 3.4 | |
Accumulated Amortization | 1.8 | 1.3 | |
Net | $2.10 | $2.10 | |
[1] | Adjusted to reflect the discontinued operations. |
Other_Intangible_Assets_Amorti
Other Intangible Assets (Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense | $3.50 | $2.50 | $1.40 |
Other_Intangible_Assets_Schedu1
Other Intangible Assets (Schedule of Amortization Expense for Subsequent Years) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
2014 | $4.50 |
2015 | 4.4 |
2016 | 4.3 |
2017 | 4.2 |
2018 | $4.10 |
Other_LongTerm_Assets_Details
Other Long-Term Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Summary of other assets | ' | ' | |
Pension assets | $73.30 | $52.90 | |
Deferred financing costs, net | 5.7 | 7 | |
Other | 1.4 | 2.2 | |
Totals | $80.40 | $62.10 | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Accrued_Expenses_Accrued_Expen
Accrued Expenses (Accrued Expenses) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Summary of accrued expenses | ' | ' | |
Accrued salaries, wages and benefits | $22.20 | $20.10 | |
Advance billings | 20.4 | 27.2 | |
Warranty accrual | 5.4 | 6.9 | |
Interest payable | 5.6 | 5.5 | |
Taxes, income and other | 2.9 | 6.1 | |
Other | 23.4 | 17.8 | |
Total | $79.90 | $83.60 | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Accrued_Expenses_Schedule_of_C
Accrued Expenses (Schedule of Changes in Company's Product Warranty Liability) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in product warranty liability | ' | ' | ' |
Balance at beginning of period | $6.90 | $4.20 | $4 |
Claims paid during the year | -6.4 | -6 | -3.4 |
Warranty expense | 4.9 | 5.4 | 3.6 |
Acquired warranty liabilities | 0 | 3.3 | 0 |
Balance at end of period | $5.40 | $6.90 | $4.20 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | 12 Months Ended | 0 Months Ended | 0 Months Ended | ||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 23, 2012 | Mar. 22, 2012 | Dec. 31, 2013 | Mar. 23, 2012 | Dec. 31, 2013 | Mar. 23, 2012 | Mar. 23, 2012 | Mar. 23, 2012 | Mar. 23, 2012 | Mar. 23, 2012 | Mar. 23, 2012 | Dec. 31, 2013 | Apr. 07, 2011 | |
Revolving credit facility | Revolving credit facility | Revolving credit facility | Standby letters of credit | Term Loan | Term Loan | LIBOR | LIBOR | LIBOR | Prime lending rate | Prime lending rate | Prime lending rate | 8.125% senior notes due 2021 | 8.125% senior notes due 2021 | ||||
Revolving credit facility | Revolving credit facility | Term Loan | Revolving credit facility | Revolving credit facility | Term Loan | ||||||||||||
Minimum | Maximum | Minimum | Maximum | ||||||||||||||
Financing Arrangements (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 |
Senior notes, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.13% | ' |
Maximum borrowing capacity | ' | ' | ' | ' | 220,000,000 | 200,000,000 | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional available borrowing capacity | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding standby letters of credit | ' | ' | ' | ' | ' | ' | 12,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.75% | 2.75% | -0.25% | -1.00% | 0.25% | ' | ' |
Interest rate at end of period | ' | ' | ' | 1.94% | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining borrowing capacity | ' | ' | ' | 67,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan, period | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign subsidiaries borrowings | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign subsidiaries bank guarantee amount | 7,200,000 | 9,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rate | 6.10% | 6.15% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of deferred financing costs | ' | $300,000 | $7,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing_Arrangements_Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Components of Long-term debt | ' | ' | |
Long-term debt | $383.60 | $378.60 | |
Less current maturities | 4.4 | 4.4 | [1] |
Total long-term debt, net of current portion | 379.2 | 374.2 | |
8.125% senior notes due 2021 | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Senior notes, interest rate | 8.13% | ' | |
Components of Long-term debt | ' | ' | |
Long-term debt | 250 | 250 | |
Other | ' | ' | |
Components of Long-term debt | ' | ' | |
Long-term debt | 3.9 | 4.4 | |
Revolving credit facility | ' | ' | |
Components of Long-term debt | ' | ' | |
Long-term debt | 111 | 101.9 | |
Term Loan | ' | ' | |
Components of Long-term debt | ' | ' | |
Long-term debt | $18.70 | $22.30 | |
[1] | Adjusted to reflect the discontinued operations. |
Financing_Arrangements_Fair_Va
Financing Arrangements (Fair Value of Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Carrying amount | $383.60 | $378.60 |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Carrying amount | 250 | 250 |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Fair value | $275.60 | $266.30 |
Financing_Arrangements_Schedul1
Financing Arrangements (Schedule of Maturities of Long-term Debt) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2014 | $4.40 |
2015 | 4.4 |
2016 | 123.4 |
2017 | 0.7 |
2018 | $0.50 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | ' | ' |
Deferred Tax Asset Cumulative Loss Position Term | '3 years | ' |
Valuation allowances | $2.60 | $4.20 |
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 4.7 | 4.9 |
Net interest and penalties | 0.7 | 0.1 |
Payment of interest and penalties accrued | 1.4 | 0.8 |
Undistributed earnings | 82.6 | ' |
Foreign Tax Authority | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards for income tax purposes | 5.2 | ' |
Operating loss carryforward, subject to expiration | 2.9 | ' |
Operating Loss Carryforward Expiration Year | '2025 | ' |
Valuation allowances | 1.2 | 0.2 |
State and Local Jurisdiction | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Net operating loss carryforwards for income tax purposes | 4.1 | ' |
Valuation allowance against state net operating loss carryforward | $1.60 | ' |
State and Local Jurisdiction | Minimum | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating Loss Carryforward Expiration Year | '2014 | ' |
State and Local Jurisdiction | Maximum | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' |
Operating Loss Carryforward Expiration Year | '2033 | ' |
Income_Taxes_Income_from_Conti
Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income from continuing operations before income tax expense | ' | ' | ' |
United States | $48.40 | $39.10 | $17.50 |
Outside the United States | 11.9 | 15.4 | 10.4 |
Income before income taxes | $60.30 | $54.50 | $27.90 |
Income_Taxes_Income_Taxes_Deta
Income Taxes (Income Taxes) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Current expense (benefit): | ' | ' | ' | ||
Federal | $16 | $7.50 | $0 | ||
State | 1.5 | 0.8 | 0.5 | ||
Foreign | 4.2 | 4.4 | 7.1 | ||
Total | 21.7 | 12.7 | 7.6 | ||
Deferred expense (benefit): | ' | ' | ' | ||
Federal | 1.2 | 7.5 | -8.3 | ||
State | -2.6 | -0.2 | -2.5 | ||
Foreign | -0.9 | 0.3 | -0.6 | ||
Total | -2.3 | 7.6 | -11.4 | ||
Income tax expense (benefit) | $19.40 | $20.30 | [1] | ($3.80) | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Income_Taxes_Reconciliation_Be
Income Taxes (Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates) (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Rate reconciliation | ' | ' | ' | ||
Tax at statutory rate | $21.10 | $19.30 | $9.90 | ||
Effect of state income taxes, net | 1.1 | 0.9 | 0.1 | ||
Effect of foreign operations | -0.2 | -0.1 | 2.9 | ||
Valuation allowance | -1.6 | -0.2 | -16.8 | ||
Non-deductible items | 0.7 | 0.6 | 0.4 | ||
Manufacturer's deduction | -1.4 | -0.6 | 0 | ||
Other, net | -0.3 | 0.4 | -0.3 | ||
Income tax expense (benefit) | $19.40 | $20.30 | [1] | ($3.80) | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Income_Taxes_Significant_Compo
Income Taxes (Significant Components of the Company's Net Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Postretirement benefit obligation | $5.90 | $7 |
Inventory | 13.2 | 11.5 |
Net operating loss and credit carryforwards | 3.8 | 5.3 |
Goodwill | 0.5 | 0.6 |
Other | 17.1 | 13.1 |
Total deferred tax assets | 40.5 | 37.5 |
Deferred tax liabilities: | ' | ' |
Depreciation and amortization | 11.7 | 8.7 |
Inventory | 0.6 | 0.6 |
Pension | 26.4 | 19.2 |
Goodwill | 2.7 | 0 |
Intangible assets and other | 16.6 | 16.5 |
Total deferred tax liabilities | 58 | 45 |
Net deferred tax liabilities prior to valuation allowances | -17.5 | -7.5 |
Valuation allowances | -2.6 | -4.2 |
Net deferred tax liability | ($20.10) | ($11.70) |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Beginning and Ending amount of Unrecognized tax benefits | ' | ' | ' |
Unrecognized Tax Benefit January 1 | $6.10 | $6 | $6.20 |
Gross Increases - Tax Positions in Prior Period | 0.4 | 0.1 | 0 |
Gross Decreases - Tax Positions in Prior Period | -0.6 | 0 | -0.1 |
Gross Increases - Tax Positions in Current Period | 0 | 0.1 | 0.1 |
Settlements | 0 | 0 | 0 |
Lapse of Statute of Limitations | 0 | -0.1 | -0.2 |
Unrecognized Tax Benefit - December 31 | $5.90 | $6.10 | $6 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Period of stock option exercisable | '10 years | ' | ' |
Aggregate number of shares | 146,000 | 186,334 | ' |
Limit of shares to individual participant in one calendar year | 500,000 | ' | ' |
Stock options awards | 0 | 0 | 0 |
Average contractual life | '2 years 8 months 12 days | ' | ' |
Intrinsic value of options exercised | $1.10 | $0.80 | $3.60 |
Issuance of common stock awards | 0.4 | 0.5 | 0.5 |
Total fair value of restricted stock units vested | 6.1 | 4.6 | 4 |
Unrecognized compensation expense | 8 | ' | ' |
Total weighted average period | '2 years 1 month 6 days | ' | ' |
Number of shares available for future grants | 267,953 | ' | ' |
Range One | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Aggregate number of shares | 111,000 | ' | ' |
Exercise prices for options outstanding, lower limit | $14.12 | ' | ' |
Exercise prices for options outstanding, upper limit | $15.61 | ' | ' |
Range Two | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Aggregate number of shares | 35,000 | ' | ' |
Exercise prices for options outstanding, lower limit | $20 | ' | ' |
Exercise prices for options outstanding, upper limit | $24.92 | ' | ' |
Stock Options | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Compensation expense | ' | ' | 0.1 |
Stock Compensation Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Compensation expense | 0.1 | ' | ' |
Employee option to purchase common stock | 0.5 | ' | ' |
Current market value discount rate | 20.00% | ' | ' |
Restricted Shares | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Compensation expense | $4.70 | $2.70 | $2.10 |
1998 Long Term Incentive Plan | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Aggregate number of shares | 3,700,000 | ' | ' |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Stock Option Activity) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Number of Shares | ' | ' | ' |
Outstanding - beginning of year, number of shares | 186,334 | ' | ' |
Granted, number of shares | 0 | 0 | 0 |
Exercised, number of shares | -40,334 | ' | ' |
Canceled or expired, number of shares | 0 | ' | ' |
Outstanding - end of year, number of shares | 146,000 | 186,334 | ' |
Options exercisable, number of shares | 146,000 | ' | ' |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding - beginning of year, Weighted Average Exercise Price | $15.02 | ' | ' |
Granted, Weighted Average Exercise Price | $0 | ' | ' |
Exercised, Weighted Average Exercise Price | $8.89 | ' | ' |
Canceled or Expired, Weighted Average Exercise Price | $0 | ' | ' |
Outstanding - end of year, Weighted Average Exercise Price | $16.71 | $15.02 | ' |
Options Exercisable - end of year, Weighted Average Exercise Price | $16.71 | ' | ' |
Outstanding - end of year, weighted average remaining contractual term | '2 years 8 months 12 days | ' | ' |
Options Exercisable, Weighted Average remaining contractual term | '2 years 8 months 12 days | ' | ' |
Outstanding - end of year, Aggregate intrinsic value | $5.20 | ' | ' |
Options Exercisable, Aggregate intrinsic value | $5.20 | ' | ' |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary of Restricted Share Activity) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Shares | ' |
Number of Shares | ' |
Outstanding - beginning of year, number of shares | 385,168 |
Granted, number of shares | 212,050 |
Vested, number of shares | -170,320 |
Canceled or expired, number of shares | -4,000 |
Outstanding - end of year, number of shares | 422,898 |
Weighted Average Grant Date Fair Value | ' |
Outstanding - beginning of year, weighted average grant date fair value | $14.94 |
Granted, weighted average grant date fair value | $30.37 |
Vested, weighted average grant date fair value | $18.86 |
Canceled or expired, weighted average grant date fair value | $21.59 |
Outstanding - end of year, weighted average grant date fair value | $21.04 |
Performance Shares | ' |
Number of Shares | ' |
Outstanding - beginning of year, number of shares | 56,000 |
Granted, number of shares | 0 |
Vested, number of shares | -14,000 |
Canceled or expired, number of shares | 0 |
Outstanding - end of year, number of shares | 42,000 |
Weighted Average Grant Date Fair Value | ' |
Outstanding - beginning of year, weighted average grant date fair value | $20.30 |
Vested, weighted average grant date fair value | $20.30 |
Outstanding - end of year, weighted average grant date fair value | $20.30 |
Commitments_Contingencies_and_2
Commitments, Contingencies and Litigation Judgment (Details) (TMK IPSCO, USD $) | 1 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 |
TMK IPSCO | ' | ' |
Loss Contingencies [Line Items] | ' | ' |
Direct damages sought | ' | $10 |
Damages awarded | 5.2 | ' |
Additional damages sought | $3.80 | ' |
Commitments_Contingencies_and_3
Commitments, Contingencies and Litigation Judgment (Leases) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Leases (Textual) [Abstract] | ' | ' | ' |
2014 | $13.50 | ' | ' |
2015 | 10.9 | ' | ' |
2016 | 9.4 | ' | ' |
2017 | 7.2 | ' | ' |
2018 | 5.1 | ' | ' |
Thereafter | 4 | ' | ' |
Rental expense | 17.6 | 15.8 | 16.4 |
Affiliated Entity | ' | ' | ' |
Leases (Textual) [Abstract] | ' | ' | ' |
Rental expense | $2.60 | ' | ' |
Pensions_and_Postretirement_Be2
Pensions and Postretirement Benefits (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pensions and Postretirement Benefits (Additional Textual) [Abstract] | ' | ' | ' |
Benefit obligation | ' | ' | $1.10 |
Annual supplemental retirement benefit | 0.4 | ' | ' |
Supplemental Pension Maximum | '13 years | ' | ' |
Vested retirement benefit credited service maximum period | '7 years | ' | ' |
Vested retirement benefit credited service period | '20 years | ' | ' |
Percentage of Supplemental Pension Received | 100.00% | ' | ' |
SERP Expense | 0.5 | 0.5 | 0.4 |
Contribution retirement benefit credited quarterly | 0.1 | ' | ' |
Contribution retirement benefit credited annually | 0.4 | ' | ' |
Contribution retirement benefit vested period | '7 years | ' | ' |
Contribution retirement benefit vested, Percentage | 100.00% | ' | ' |
Pension Benefits | ' | ' | ' |
Pensions and Postretirement Benefits (Additional Textual) [Abstract] | ' | ' | ' |
Expected return on plan assets | 8.25% | 8.25% | 8.25% |
Postretirement Benefits | ' | ' | ' |
Pensions and Postretirement Benefits (Additional Textual) [Abstract] | ' | ' | ' |
Estimated net loss | 0.6 | ' | ' |
Estimated prior service cost | ($0.10) | ' | ' |
Pensions_and_Postretirement_Be3
Pensions and Postretirement Benefits (Summary of Change in Defined Benefit and Postretirement Benefit Plans) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Change in plan assets | ' | ' | ' | |
Fair value of plan assets at end of year | $125.40 | $109.40 | ' | |
Funded (underfunded) status of the plans | ' | ' | ' | |
Current liabilities | -1.7 | -1.9 | [1] | ' |
Pension Benefits | ' | ' | ' | |
Change in benefit obligation | ' | ' | ' | |
Benefit obligation at beginning of year | 56.4 | 52.3 | ' | |
Service costs | 2.6 | 2.2 | 1.6 | |
Interest costs | 2 | 2.2 | 2.3 | |
Actuarial (gains) losses | -4.4 | 4.2 | ' | |
Benefits and expenses paid, net of contributions | -4.5 | -4.5 | ' | |
Benefit obligation at end of year | 52.1 | 56.4 | 52.3 | |
Change in plan assets | ' | ' | ' | |
Fair value of plan assets at beginning of year | 109.4 | 101.8 | ' | |
Actual return on plan assets | 21.8 | 13.7 | ' | |
Company contributions | 0 | 0 | ' | |
Cash transfer to fund postretirement benefit payments | -1.3 | -1.6 | ' | |
Benefits and expenses paid, net of contributions | -4.5 | -4.5 | ' | |
Fair value of plan assets at end of year | 125.4 | 109.4 | 101.8 | |
Funded (underfunded) status of the plans | 73.3 | 53 | ' | |
Funded (underfunded) status of the plans | ' | ' | ' | |
Noncurrent assets | 73.3 | 53 | ' | |
Noncurrent liabilities | 0 | 0 | ' | |
Current liabilities | 0 | 0 | ' | |
Total amounts recognized in the consolidated balance sheets | 73.3 | 53 | ' | |
Amounts recognized in accumulated other comprehensive loss | ' | ' | ' | |
Net actuarial loss | 2.1 | 20.3 | ' | |
Net prior service cost (credit) | 0.1 | 0.1 | ' | |
Net transition (asset) | 0 | 0.1 | ' | |
Accumulated other comprehensive loss | 2.2 | 20.3 | ' | |
Postretirement Benefits | ' | ' | ' | |
Change in benefit obligation | ' | ' | ' | |
Benefit obligation at beginning of year | 18.5 | 18.6 | ' | |
Service costs | 0.1 | 0 | 0.1 | |
Interest costs | 0.6 | 0.8 | 0.9 | |
Actuarial (gains) losses | -1.3 | 1.1 | ' | |
Benefits and expenses paid, net of contributions | -1.7 | -2 | ' | |
Benefit obligation at end of year | 16.2 | 18.5 | 18.6 | |
Change in plan assets | ' | ' | ' | |
Fair value of plan assets at beginning of year | 0 | 0 | ' | |
Actual return on plan assets | ' | 0 | ' | |
Company contributions | 1.7 | 2 | ' | |
Cash transfer to fund postretirement benefit payments | ' | 0 | ' | |
Benefits and expenses paid, net of contributions | -1.7 | -2 | ' | |
Fair value of plan assets at end of year | ' | 0 | 0 | |
Funded (underfunded) status of the plans | -16.2 | -18.5 | ' | |
Funded (underfunded) status of the plans | ' | ' | ' | |
Noncurrent assets | 0 | 0 | ' | |
Noncurrent liabilities | -14.5 | -16.6 | ' | |
Current liabilities | -1.7 | -1.9 | ' | |
Total amounts recognized in the consolidated balance sheets | 16.2 | 18.5 | ' | |
Amounts recognized in accumulated other comprehensive loss | ' | ' | ' | |
Net actuarial loss | 6.3 | 8.2 | ' | |
Net prior service cost (credit) | -0.5 | -0.6 | ' | |
Net transition (asset) | 0 | 0 | ' | |
Accumulated other comprehensive loss | $5.80 | $7.60 | ' | |
[1] | Adjusted to reflect the discontinued operations. |
Pensions_and_Postretirement_Be4
Pensions and Postretirement Benefits (Summary of Pension Plan Weighted-Average Asset Allocation) (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of pension plan weighted-average asset allocation/summary of reconciliation of level 3 assets | ' | ' |
Defined Benefit Plan, weighted average asset allocations | 100.00% | 100.00% |
Defined Benefit Plan, Target Plan Asset Allocations | 100.00% | ' |
Equity securities | ' | ' |
Summary of pension plan weighted-average asset allocation/summary of reconciliation of level 3 assets | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 45.00% | ' |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 75.00% | ' |
Defined Benefit Plan, weighted average asset allocations | 67.20% | 64.40% |
Debt securities | ' | ' |
Summary of pension plan weighted-average asset allocation/summary of reconciliation of level 3 assets | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 10.00% | ' |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 40.00% | ' |
Defined Benefit Plan, weighted average asset allocations | 25.40% | 27.80% |
Other | ' | ' |
Summary of pension plan weighted-average asset allocation/summary of reconciliation of level 3 assets | ' | ' |
Defined Benefit Plan, Target Plan Asset Allocations Range Minimum | 0.00% | ' |
Defined Benefit Plan, Target Plan Asset Allocations Range Maximum | 20.00% | ' |
Defined Benefit Plan, weighted average asset allocations | 7.40% | 7.80% |
Pensions_and_Postretirement_Be5
Pensions and Postretirement Benefits (Summary of Pension Plan Asset Allocation By Level) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | $125.40 | $109.40 | ' |
Common stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 50.8 | 42.6 | ' |
Equity Funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 26.9 | 23.9 | ' |
Foreign Stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 5.6 | 4.1 | ' |
U.S. Government obligations | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 5.1 | 6.5 | ' |
Fixed income funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 18.8 | 17.1 | ' |
Balanced funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 2.1 | 0 | ' |
Corporate Bonds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 6.8 | 6.8 | ' |
Cash and Cash Equivalents | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 2 | 2 | ' |
Hedge funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 7.3 | 6.4 | 5.9 |
Level 1 | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 115.6 | 100.5 | ' |
Level 1 | Common stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 48.3 | 40.1 | ' |
Level 1 | Equity Funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 26.9 | 23.9 | ' |
Level 1 | Foreign Stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 5.6 | 4.1 | ' |
Level 1 | U.S. Government obligations | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 5.1 | 6.5 | ' |
Level 1 | Fixed income funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 18.8 | 17.1 | ' |
Level 1 | Balanced funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 2.1 | 0 | ' |
Level 1 | Corporate Bonds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 6.8 | 6.8 | ' |
Level 1 | Cash and Cash Equivalents | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 2 | 2 | ' |
Level 1 | Hedge funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 2.5 | 2.5 | ' |
Level 2 | Common stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 2.5 | 2.5 | ' |
Level 2 | Equity Funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | Foreign Stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | U.S. Government obligations | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | Fixed income funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | Balanced funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | Corporate Bonds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | Cash and Cash Equivalents | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 2 | Hedge funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 7.3 | 6.4 | ' |
Level 3 | Common stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | Equity Funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | Foreign Stock | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | U.S. Government obligations | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | Fixed income funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | Balanced funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | Corporate Bonds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | Cash and Cash Equivalents | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | 0 | 0 | ' |
Level 3 | Hedge funds | ' | ' | ' |
Schedule of pension plans assets by level within the fair value hierarchy | ' | ' | ' |
Fair Value of Pension Plan | $7.30 | $6.40 | ' |
Pensions_and_Postretirement_Be6
Pensions and Postretirement Benefits (Summary of Reconciliation of Level 3 Assets Held) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of reconciliation of Level 3 assets | ' | ' |
Fair value of plan assets at end of year | $125.40 | $109.40 |
Hedge funds | ' | ' |
Summary of reconciliation of Level 3 assets | ' | ' |
Fair value of plan assets at beginning of year | 6.4 | 5.9 |
Net Unrealized Gain | 0.9 | 0.5 |
Purchases | 0 | 0 |
Fair value of plan assets at end of year | $7.30 | $6.40 |
Pensions_and_Postretirement_Be7
Pensions and Postretirement Benefits (Summary of Assumptions Used in the valuation of pension and postretirement benefit obligations) (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Benefits | ' | ' | ' |
Summary of assumptions used by the consulting actuary and the related cost information | ' | ' | ' |
Discount rate | 4.51% | 3.66% | 4.50% |
Expected return on plan assets | 8.25% | 8.25% | 8.25% |
Rate of compensation increase | 2.00% | 2.00% | 2.00% |
Postretirement Benefits | ' | ' | ' |
Summary of assumptions used by the consulting actuary and the related cost information | ' | ' | ' |
Discount rate | 4.21% | 3.35% | 4.50% |
Medical health care benefits rate increase | 6.50% | 7.00% | 6.50% |
Medical drug benefits rate increase | 6.50% | 7.25% | 8.00% |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Pensions_and_Postretirement_Be8
Pensions and Postretirement Benefits (Summary of Components of Net Periodic Benefit Cost) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits | ' | ' | ' |
Components of net periodic benefit cost | ' | ' | ' |
Service costs | $2.60 | $2.20 | $1.60 |
Interest costs | 2 | 2.2 | 2.3 |
Expected return on plan assets | -8.9 | -8.2 | -8.9 |
Amortization of prior service credit | 0 | 0 | 0 |
Recognized net actuarial loss | 0.8 | 0.9 | 0 |
Benefit (income) costs | -3.5 | -2.9 | -5 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | ' | ' | ' |
AOCI at beginning of year | 20.3 | 22.4 | 7.7 |
Net (gain) loss arising during the year | -17.3 | -1.2 | 14.7 |
Recognition of prior service credit | 0 | 0 | 0 |
Recognition of actuarial loss | -0.8 | -0.9 | 0 |
Total recognized in accumulated other comprehensive loss at end of year | 2.2 | 20.3 | 22.4 |
Postretirement Benefits | ' | ' | ' |
Components of net periodic benefit cost | ' | ' | ' |
Service costs | 0.1 | 0 | 0.1 |
Interest costs | 0.6 | 0.8 | 0.9 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service credit | -0.1 | -0.1 | -0.1 |
Recognized net actuarial loss | 0.7 | 0.7 | 0.4 |
Benefit (income) costs | 1.3 | 1.4 | 1.3 |
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | ' | ' | ' |
AOCI at beginning of year | 7.6 | 7.1 | 6.1 |
Net (gain) loss arising during the year | -1.2 | 1.1 | 1.3 |
Recognition of prior service credit | 0.1 | 0.1 | 0.1 |
Recognition of actuarial loss | -0.7 | -0.7 | -0.4 |
Total recognized in accumulated other comprehensive loss at end of year | $5.80 | $7.60 | $7.10 |
Pensions_and_Postretirement_Be9
Pensions and Postretirement Benefits (Summary Company's Expected Future Benefit Payments) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Pension Benefits | ' |
Other postretirement benefit plans defined benefit net including medicare subsidy | ' |
Pension Benefits 2014 | $4.20 |
Pension Benefits 2015 | 4.2 |
Pension Benefits 2016 | 4.1 |
Pension Benefits 2017 | 4.3 |
Pension Benefits 2018 | 4.2 |
Pension Benefits 2019 to 2023 | 21.9 |
Postretirement Benefits | ' |
Other postretirement benefit plans defined benefit net including medicare subsidy | ' |
Pension Benefits 2014 | 1.7 |
Pension Benefits 2015 | 1.6 |
Pension Benefits 2016 | 1.5 |
Pension Benefits 2017 | 1.4 |
Pension Benefits 2018 | 1.4 |
Pension Benefits 2019 to 2023 | 5.6 |
Postretirement Benefits | Gross | ' |
Other postretirement benefit plans defined benefit net including medicare subsidy | ' |
Pension Benefits 2014 | 1.9 |
Pension Benefits 2015 | 1.8 |
Pension Benefits 2016 | 1.7 |
Pension Benefits 2017 | 1.6 |
Pension Benefits 2018 | 1.5 |
Pension Benefits 2019 to 2023 | 6.2 |
Postretirement Benefits | Pension Benefits | ' |
Other postretirement benefit plans defined benefit net including medicare subsidy | ' |
Pension Benefits 2014 | 0.2 |
Pension Benefits 2015 | 0.2 |
Pension Benefits 2016 | 0.2 |
Pension Benefits 2017 | 0.2 |
Pension Benefits 2018 | 0.1 |
Pension Benefits 2019 to 2023 | $0.60 |
Recovered_Sheet1
Pensions and Postretirement Benefits (Summary of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rate) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Summary of One-Percentage-Point Change in the Assumed Healthcare Cost Trend Rate | ' |
Effect on total of service and interest cost components in 2012 increase | $0.10 |
Effect on total of service and interest cost components in 2012 decrease | 0 |
Effect on postretirement benefit obligation as of December 31, 2012 increase | 1.3 |
Effect on postretirement benefit obligation as of December 31, 2012 decrease | ($1.10) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of accumulated comprehensive loss) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Balance | $3.40 | ($6.80) | [1] | ' | ||
Cumulative Translation Adjustment | ' | ' | ' | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Balance | 5.4 | 4.8 | 6.2 | |||
Foreign currency translation adjustments | -2.6 | [2] | 0.6 | [2] | -1.4 | [2] |
Loss arising during the year | ' | ' | 0 | |||
Tax adjustment | ' | ' | 0 | |||
Loss arising during the year | ' | ' | 0 | |||
Recognition of actuarial gain | 0 | [3] | 0 | [3] | 0 | [3] |
Tax adjustment | 0 | [4] | 0 | [4] | 0 | [4] |
Recognition of actuarial gain, net | 0 | 0 | 0 | [4] | ||
Balance | 2.8 | 5.4 | 4.8 | |||
Pension and Postretirement Benefits | ' | ' | ' | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Balance | -12.2 | -13.2 | -3.8 | |||
Foreign currency translation adjustments | 0 | [2] | 0 | [2] | 0 | |
Loss arising during the year | ' | ' | -16 | |||
Tax adjustment | ' | ' | 6.4 | |||
Loss arising during the year | ' | ' | -9.6 | |||
Recognition of actuarial gain | 19.9 | [3] | 1.6 | [3] | 0.4 | [3] |
Tax adjustment | -7.1 | [4] | -0.6 | [4] | -0.2 | [4] |
Recognition of actuarial gain, net | 12.8 | 1 | 0.2 | [4] | ||
Balance | 0.6 | -12.2 | -13.2 | |||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | |||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Balance | -6.8 | -8.4 | 2.4 | |||
Foreign currency translation adjustments | -2.6 | [2] | 0.6 | [2] | -1.4 | [2] |
Loss arising during the year | ' | ' | -16 | |||
Tax adjustment | ' | ' | 6.4 | |||
Loss arising during the year | ' | ' | -9.6 | |||
Recognition of actuarial gain | 19.9 | [3] | 1.6 | [3] | 0.4 | [3] |
Tax adjustment | -7.1 | [4] | -0.6 | [4] | -0.2 | [4] |
Recognition of actuarial gain, net | 12.8 | 1 | 0.2 | [4] | ||
Balance | $3.40 | ($6.80) | ($8.40) | |||
[1] | Adjusted to reflect the discontinued operations. | |||||
[2] | No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. | |||||
[3] | The recognition of actuarial gains are reclassified out of accumulated other comprehensive income and included in the computation of net periodic benefit cost in selling, general and administrative expenses. | |||||
[4] | The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expenses. |
Restructuring_and_Unusual_Char1
Restructuring and Unusual Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Sep. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Restructuring and Unusual Charges (Textual) [Abstract] | ' | ' | ' | ' | |||
Restructuring and asset impairment charges | $5.40 | $0 | [1] | $0 | [1] | $5.40 | [1] |
[1] | Adjusted to reflect the discontinued operations. |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 01, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 03, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 23, 2012 | ||||||
Southwest Steel Processing LLC [Member] | Supply Technologies [Member] | Supply Technologies [Member] | Supply Technologies [Member] | Discontinued Operations | Discontinued Operations | Discontinued Operations | Discontinued Operations | Fluid Routing Solutions Holding Corp | ||||||||||||||||||
Non-core Business Unit | Non-core Business Unit | Non-core Business Unit | Non-core Business Unit | |||||||||||||||||||||||
Supply Technologies [Member] | Supply Technologies [Member] | Supply Technologies [Member] | Supply Technologies [Member] | |||||||||||||||||||||||
Net sales | $309.40 | $303.50 | $307.30 | $283 | $274 | $285.20 | $307.30 | $261.70 | $1,203.20 | [1] | $1,128.20 | [1] | $961.40 | [1] | ' | $471.90 | [1] | $483.80 | [1] | $481.40 | [1] | ' | ' | ' | ' | ' |
Gross profit | 47.3 | 54.6 | 57.5 | 51.6 | 48.2 | 54.2 | 55.9 | 49 | 211 | 207.3 | [1] | 167.7 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net income from continuing operations | 9.4 | 8.7 | 12.1 | 10.7 | 8.2 | 11.4 | 5 | 9.6 | 40.9 | 34.2 | [1] | 31.7 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Income (loss) from discontinued operations, net of taxes | -0.2 | 3.7 | -0.1 | -0.4 | -0.5 | -0.7 | -0.6 | -0.6 | 3 | -2.4 | [1] | -2.3 | [1] | ' | ' | ' | ' | ' | 3 | -2.4 | -2.3 | ' | ||||
Net income attributable to noncontrolling interest | -0.3 | -0.2 | 0 | 0 | ' | ' | ' | ' | -0.5 | 0 | [1] | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Net income attributable to ParkOhio common shareholders | 8.9 | 12.2 | 12 | 10.3 | 7.7 | 10.7 | 4.4 | 9 | 43.4 | 31.8 | [1] | 29.4 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Continuing operations (in dollars per share) | $0.76 | $0.71 | $1.02 | $0.90 | $0.68 | $0.95 | $0.42 | $0.81 | $3.40 | $2.87 | [1] | $2.74 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Discontinued operations (in dollars per share) | ($0.02) | $0.31 | ($0.01) | ($0.03) | ($0.04) | ($0.06) | ($0.05) | ($0.05) | $0.25 | ($0.20) | [1] | ($0.20) | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total (in dollars per share) | $0.74 | $1.02 | $1.01 | $0.87 | $0.64 | $0.89 | $0.37 | $0.76 | $3.65 | $2.67 | [1] | $2.54 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Earnings (loss) per common share attributable to ParkOhio common shareholders - Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Continuing operations (in dollars per share) | $0.74 | $0.69 | $0.99 | $0.88 | $0.67 | $0.94 | $0.42 | $0.79 | $3.31 | $2.82 | [1] | $2.64 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Discontinued operations (in dollars per share) | ($0.02) | $0.30 | ($0.01) | ($0.03) | ($0.04) | ($0.06) | ($0.05) | ($0.05) | $0.25 | ($0.20) | [1] | ($0.19) | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Total (in dollars per share) | $0.72 | $0.99 | $0.98 | $0.85 | $0.63 | $0.88 | $0.37 | $0.74 | $3.56 | $2.62 | [1] | $2.45 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Sale of noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Proceeds from sale of non-core business unit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.5 | ' | ' | ' | ' | ||||||
Litigation judgment and settlement costs | ' | ' | ' | ' | ' | ' | ' | ' | 5.2 | [1] | 13 | [1] | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Business acquisition, purchase price | ' | ' | ' | ' | ' | ' | ' | ' | $45.80 | $97 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $98.80 | ||||||
[1] | Adjusted to reflect the discontinued operations. |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts and Reserves (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Trade receivable allowances | ' | ' | ' | |||
Valuation and Qualifying Accounts and Reserves | ' | ' | ' | |||
Balance at Beginning of Period | $3.50 | $5.50 | $6 | |||
Charged to Costs and Expenses | 1.8 | 1.8 | 0.6 | |||
Deductions and Other | -1.6 | [1] | -3.8 | [1] | -1.1 | [1] |
Balance at End of Period | 3.7 | 3.5 | 5.5 | |||
Inventory obsolescence reserve | ' | ' | ' | |||
Valuation and Qualifying Accounts and Reserves | ' | ' | ' | |||
Balance at Beginning of Period | 27.2 | 24.9 | 22.8 | |||
Charged to Costs and Expenses | 9.4 | 11.6 | 7.4 | |||
Deductions and Other | -8.2 | [2] | -9.3 | [2] | -5.3 | [2] |
Balance at End of Period | 28.4 | 27.2 | 24.9 | |||
Tax valuation allowances | ' | ' | ' | |||
Valuation and Qualifying Accounts and Reserves | ' | ' | ' | |||
Balance at Beginning of Period | 4.2 | 4.4 | 22.4 | |||
Charged to Costs and Expenses | -1.6 | -0.2 | -18 | |||
Deductions and Other | 0 | 0 | 0 | |||
Balance at End of Period | $2.60 | $4.20 | $4.40 | |||
[1] | Uncollectable accounts written off, net of recoveries. | |||||
[2] | Amounts written off or payments incurred, net of acquired reserves. |