Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PARK OHIO HOLDINGS CORP | |
Entity Central Index Key | 76,282 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,618,855 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 50.9 | $ 58 |
Accounts receivable, less allowances for doubtful accounts of $3.6 million at June 30, 2015 and $4.1 million at December 31, 2014 | 216.8 | 208 |
Inventories, net | 252.5 | 238.4 |
Deferred tax assets | 28.9 | 28.9 |
Unbilled contract revenue | 31.3 | 26.8 |
Other current assets | 20 | 22.1 |
Total current assets | 600.4 | 582.2 |
Property, plant and equipment, net | 148.6 | 141.1 |
Goodwill | 74.7 | 89.5 |
Intangible assets, net | 96.9 | 88.1 |
Other long-term assets | 78 | 73.3 |
Total assets | 998.6 | 974.2 |
Current liabilities: | ||
Trade accounts payable | 147.5 | 160.3 |
Accrued expenses and other | 98.1 | 103.6 |
Total current liabilities | 245.6 | 263.9 |
Long-term liabilities: | ||
Debt, less current portion | 457.2 | 434.4 |
Deferred tax liabilities | 45.4 | 43.9 |
Other postretirement benefits and other long-term liabilities | 40.9 | 40.1 |
Total long-term liabilities | 543.5 | 518.4 |
Capital stock, par value $1 a share | ||
Serial preferred stock: Authorized -- 632,470 shares: Issued and outstanding -- none | 0 | 0 |
Common stock: Authorized -- 40,000,000 shares; Issued -- 14,607,320 shares in 2015 and 14,513,821 in 2014 | 14.6 | 14.5 |
Additional paid-in capital | 93.4 | 89.8 |
Retained earnings | 146.6 | 126.5 |
Treasury stock, at cost, 2,100,944 shares in 2015 and 2,014,692 shares in 2014 | (35.6) | (31.2) |
Accumulated other comprehensive loss | (16.3) | (14) |
Total Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 202.7 | 185.6 |
Noncontrolling interest | 6.8 | 6.3 |
Total equity | 209.5 | 191.9 |
Total liabilities and shareholders' equity | $ 998.6 | $ 974.2 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3.6 | $ 4.1 |
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) | 14,607,320 | 14,513,821 |
Treasury stock, shares (in shares) | 2,100,944 | 2,014,692 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 377.3 | $ 343.3 | $ 752 | $ 661.1 |
Cost of sales | 316.9 | 282.3 | 633.2 | 544.1 |
Gross profit | 60.4 | 61 | 118.8 | 117 |
Selling, general and administrative expenses | 34.8 | 34.9 | 68.9 | 68.7 |
Operating income | 25.6 | 26.1 | 49.9 | 48.3 |
Interest expense | 6.9 | 6.6 | 13.7 | 12.9 |
Income before income taxes | 18.7 | 19.5 | 36.2 | 35.4 |
Income tax expense | 6.1 | 6.6 | 12.5 | 12.2 |
Net income | 12.6 | 12.9 | 23.7 | 23.2 |
Net income attributable to noncontrolling interest | (0.2) | (0.5) | (0.5) | (0.7) |
Net income attributable to ParkOhio common shareholders | $ 12.4 | $ 12.4 | $ 23.2 | $ 22.5 |
Earnings per common share attributable to ParkOhio common shareholders: | ||||
Basic (in dollars per share) | $ 1.02 | $ 1.02 | $ 1.90 | $ 1.86 |
Diluted (in dollars per share) | $ 1 | $ 1 | $ 1.87 | $ 1.81 |
Weighted-average shares used to compute earnings per share: | ||||
Basic (in shares) | 12,230,100 | 12,086,973 | 12,198,169 | 12,055,678 |
Diluted (in shares) | 12,427,395 | 12,372,189 | 12,428,490 | 12,355,421 |
Dividend per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.250 | $ 0.125 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 12.6 | $ 12.9 | $ 23.7 | $ 23.2 |
Other comprehensive income: | ||||
Foreign currency translation gain (loss) | 2.7 | 1.4 | (2.6) | 1 |
Pension and postretirement benefit adjustments, net of tax | 0.1 | 0.1 | 0.3 | 0 |
Total other comprehensive income (loss) | 2.8 | 1.5 | (2.3) | 1 |
Total comprehensive income, net of tax | 15.4 | 14.4 | 21.4 | 24.2 |
Comprehensive income attributable to noncontrolling interest | (0.2) | (0.5) | (0.5) | (0.7) |
Comprehensive income attributable to ParkOhio common shareholders | $ 15.2 | $ 13.9 | $ 20.9 | $ 23.5 |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Jun. 30, 2015 - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] |
Shares, Issued at Dec. 31, 2014 | 14,513,821 | ||||||
Beginning balance at Dec. 31, 2014 | $ 191.9 | $ 14.5 | $ 89.8 | $ 126.5 | $ (31.2) | $ (14) | $ 6.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Other comprehensive income (loss) | 21.4 | 23.2 | (2.3) | 0.5 | |||
Share-based compensation expense and award activity (in shares) | 115,000 | ||||||
Share-based compensation expense and award activity | 3 | $ 0.1 | 2.9 | ||||
Restricted stock canceled (in shares) | (21,501) | ||||||
Restricted stock canceled | 0.7 | 0.7 | |||||
Dividends | $ (3.1) | (3.1) | |||||
Purchase of treasury stock (in shares) | 86,252 | ||||||
Purchase of treasury stock (86,252 shares) | $ (4.4) | (4.4) | |||||
Shares, Issued at Jun. 30, 2015 | 14,607,320 | ||||||
Ending balance at Jun. 30, 2015 | $ 209.5 | $ 14.6 | $ 93.4 | $ 146.6 | $ (35.6) | $ (16.3) | $ 6.8 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net income | $ 23.7 | $ 23.2 |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 14 | 10.6 |
Share-based compensation | 2.9 | 2.5 |
Gain on sale of assets | 0 | (0.5) |
Other | 0 | 0.7 |
Changes in operating assets and liabilities, excluding business acquisitions: | ||
Accounts receivable | (10.6) | (26.4) |
Inventories and other current assets | (18.4) | (7.4) |
Accounts payable and accrued expenses | (17.7) | 12.2 |
Other | 1.1 | 0.6 |
Net cash (used) provided by operating activities | (5) | 15.5 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (19.9) | (12.3) |
Proceeds from sale of assets | 0 | 0.5 |
Business acquisitions, net of cash acquired | 0 | (5.9) |
Net cash used by investing activities | (19.9) | (17.7) |
FINANCING ACTIVITIES | ||
Proceeds from term loans and other debt | 3.4 | 0 |
Payments on term loans and other debt | (1.5) | (4.4) |
Proceeds from revolving credit facility, net | 24.9 | 15.8 |
Dividends | (3.1) | (1.6) |
Purchase of treasury stock | (4.4) | (3.3) |
Other | 0 | (1.3) |
Net cash provided by financing activities | 19.3 | 5.2 |
Effect of exchange rate changes on cash | (1.5) | (0.8) |
(Decrease) increase in cash and cash equivalents | (7.1) | 2.2 |
Cash and cash equivalents at beginning of period | 58 | 55.2 |
Cash and cash equivalents at end of period | 50.9 | 57.4 |
Income taxes paid | 7.6 | 13.2 |
Interest paid | $ 12.7 | $ 12.4 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Park-Ohio Holdings Corp. and its subsidiaries (collectively, “we”, “our” or the “Company”). All significant intercompany transactions have been eliminated in consolidation. Certain amounts in the prior years’ financial statements have been reclassified to conform to the current year presentation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three - and six -month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . 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. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which raises the threshold for disposals to qualify as discontinued operations and requires new disclosures for discontinued operations and for individually material disposal transactions that do not meet the definition of a discontinued operation. The ASU is effective prospectively for reporting periods beginning with the first quarter of 2015. The adoption had no effect on our consolidated financial statement as it only applies to future disposals. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. generally accepted accounting principles and International Financial Reporting Standards. The issuance of a comprehensive and converged standard on revenue recognition is expected to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions, and geographies. The ASU will require additional disclosures to help financial statement users better understand the nature, amount, timing, and potential uncertainty of the revenue that is recognized. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The ASU will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is currently evaluating the impact of adopting this guidance. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." The amendment requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs will continue to be reported as interest expense. This ASU is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The new guidance will only impact the presentation of the Company's financial position. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." The amendment requires an entity to measure inventory within the scope of this update at the lower of cost and net realizable value. This ASU is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. The new guidance will be applied prospectively. The Company is currently evaluating the impact of adopting this guidance. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segments | 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, gasoline direct injection systems and fuel filler and hydraulic fluid assemblies. 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, such as induction heating and melting systems, pipe threading equipment, machined locomotive crankshafts and camshafts and various forged and machined products. Engineered Products also produces and provides services and spare parts for the equipment it manufactures. 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 before income taxes by deducting corporate costs that are not attributable to the segments and net interest expense. Results by business segment were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Net sales: Supply Technologies $ 150.2 $ 142.4 $ 301.6 $ 276.8 Assembly Components 139.8 122.0 280.3 230.1 Engineered Products 87.3 78.9 170.1 154.2 $ 377.3 $ 343.3 $ 752.0 $ 661.1 Income before income taxes: Supply Technologies $ 13.0 $ 10.4 $ 27.2 $ 20.5 Assembly Components 13.6 12.2 24.2 20.3 Engineered Products 5.2 10.7 11.4 21.3 Total segment operating income 31.8 33.3 62.8 62.1 Corporate costs (6.2 ) (7.2 ) (12.9 ) (13.8 ) Interest expense (6.9 ) (6.6 ) (13.7 ) (12.9 ) Income before income taxes $ 18.7 $ 19.5 $ 36.2 $ 35.4 June 30, 2015 December 31, 2014 (In millions) Identifiable assets: Supply Technologies $ 288.7 $ 277.6 Assembly Components 347.7 340.5 Engineered Products 248.3 246.9 General corporate 113.9 109.2 $ 998.6 $ 974.2 |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions The following table summarizes the Company's recent acquisitions: Description Date of Transaction Purchase Consideration Acquired Segment (In millions) Saet S.p.A December 4, 2014 $ 22.1 * 100% of equity Engineered Products An Italy based leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions through its locations in Italy, China, India and Tennessee. Autoform Tool & Manufacturing October 10, 2014 $ 48.9 * 100% of equity Assembly Components An Indiana supplier of high pressure fuel lines and fuel rails used in Gasoline Direct Injection systems across a large number of engine platforms. Apollo Group Limited June 10, 2014 $ 6.5 * 100% of equity Supply Technologies A U.K. supply chain management services company providing Class C production components and supply chain solutions to aerospace customers worldwide. * Purchase consideration is net of cash acquired. The acquisitions of Apollo and Autoform were accounted for under the acquisition method of accounting. The Apollo purchase agreement provides for payment of contingent consideration of approximately $2.4 million based on achievement of certain EBITDA targets over two years . The fair value of the earn-out, valued using level 3 inputs, was approximately $1.1 million at the date of the acquisition for a total purchase consideration of $6.5 million and at June 30, 2015 , the fair value of the earn-out was approximately $1.8 million . On the acquisition date, a liability was recognized for the estimate of the acquisition date fair value of the earn-out. Any change in the fair value of the earn-out subsequent to the acquisition date will be recognized in selling, general and administrative expenses. Management’s valuation of the fair value of tangible and intangible assets acquired and liabilities assumed are based on estimates and assumptions. The Apollo purchase price allocation was finalized in the second quarter of 2015. The purchase price allocation relating to the Autoform acquisition is subject to further adjustment until all pertinent information regarding finalization of the intangible assets and deferred income tax assets and liabilities are fully evaluated by the Company and independent valuations are complete. Revisions to these estimates as fair values are finalized will be reflected in the financial statements throughout the measurement period. Based on the preliminary purchase price allocation for these acquisitions, goodwill of $5.8 million was recorded. The acquisition of Saet was accounted for under the acquisition method of accounting. In prior periods, the entire purchase price allocation was preliminary with the fair values of the assets acquired and liabilities assumed estimated based on their carrying values with the excess consideration of $23.2 million preliminarily recorded as goodwill. During the second quarter of 2015, the Company received preliminary third-party valuations for the inventories, intangible assets and tangible assets. The Company recorded adjustments resulting in a decrease to goodwill of approximately $15.0 million , primarily offset by an increase in tradenames and technology intangible assets of $4.7 million and $8.7 million , respectively. These preliminary estimates may be further revised during the measurement period in 2015 as all pertinent information regarding finalization of the third-party valuations for inventories, intangible assets, goodwill, tangible assets, other liabilities and deferred income tax assets and liabilities acquired are fully evaluated by the Company. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable We sell accounts receivable to reduce accounts receivable concentration risk and to provide additional financing capacity. The following table summarizes accounts receivable sold and the losses recorded on the sales of accounts receivable. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Accounts receivable sold $ 33.3 $ 23.2 $ 59.4 $ 46.2 Loss on sale of accounts receivable $ (0.2 ) $ (0.1 ) $ (0.3 ) $ (0.2 ) The loss on the sale of accounts receivable is recorded in selling, general and administrative expenses. These losses represent the implicit interest on the transaction. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventory consist of the following: June 30, 2015 December 31, 2014 (In millions) Finished goods $ 151.1 $ 146.0 Work in process 33.4 19.8 Raw materials and supplies 68.0 72.6 Inventories, net $ 252.5 $ 238.4 |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill by segment for the periods ended June 30, 2015 and December 31, 2014 were as follows: Supply Technologies Assembly Components Engineered Products Total (In millions) Balance at January 1, 2014 $ 6.4 $ 49.0 $ 5.0 $ 60.4 Acquisitions 0.7 5.0 23.2 28.9 Foreign currency translation 0.5 — (0.3 ) 0.2 Balance at December 31, 2014 7.6 54.0 27.9 89.5 Foreign currency translation — — 0.1 0.1 Acquisition adjustments — 0.1 (15.0 ) (14.9 ) Balance at June 30, 2015 $ 7.6 $ 54.1 $ 13.0 $ 74.7 During the second quarter of 2015, we adjusted the preliminary goodwill recorded for Saet primarily to reflect the adjustments to the determination of fair value of acquired intangible assets. During the first half of 2015, we adjusted the preliminary goodwill recorded for Autoform primarily to reflect the adjustments to the determination of fair value of acquired intangible assets. The 2014 condensed consolidated financial statements have not been retroactively adjusted as these measurement period adjustments did not have a material impact on such statements. The increase in goodwill from January 1, 2014 is due to the acquisitions of Apollo, Autoform and Saet. The goodwill associated with the Apollo and Saet transactions is not deductible for income tax purposes. |
Other Intangible Assets
Other Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | Other Intangible Assets Information regarding other intangible assets as of June 30, 2015 and December 31, 2014 follows: June 30, 2015 December 31, 2014 Weighted Average Useful Life Acquisition Cost Accumulated Amortization Net Acquisition Cost Accumulated Amortization Net (In millions) Non-contractual customer relationships 12.5 years $ 76.8 $ 16.1 $ 60.7 $ 77.3 $ 13.2 $ 64.1 Indefinite-lived tradenames * 18.7 — 18.7 14.0 — 14.0 Technology 19.4 years 16.3 0.5 15.8 8.2 0.1 8.1 Other 8.9 years 4.1 2.4 1.7 4.1 2.2 1.9 Total $ 115.9 $ 19.0 $ 96.9 $ 103.6 $ 15.5 $ 88.1 * Not applicable, tradenames have an indefinite life. Information regarding amortization expense of other intangibles assets follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Amortization expense $ 1.5 $ 1.3 $ 3.2 $ 2.4 |
Accrued Warranty Costs
Accrued Warranty Costs | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued Warranty Costs | Accrued Warranty Costs 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 six months ended June 30, 2015 and 2014 : 2015 2014 (In millions) Balance at January 1, $ 6.9 $ 5.4 Claims paid (2.2 ) (1.0 ) Warranty expense, net 1.4 1.6 Balance at June 30, $ 6.1 $ 6.0 |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Long-term debt consists of the following: Carrying Value at Issuance Date Maturity Date Interest Rate at June 30, 2015 June 30, 2015 December 31, 2014 (In millions) Senior Notes April 1, 2011 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit — July 31, 2019 1.69 % 186.9 162.0 Term loan — July 31, 2019 2.31 % 30.1 28.8 Other Various Various Various 3.6 3.0 Total debt 470.6 443.8 Less current maturities 13.4 9.4 Total long-term debt, net of current portion $ 457.2 $ 434.4 On July 31, 2014, the Company entered into a sixth amendment and restatement of the credit agreement (the “Amended Credit Agreement”). The Amended Credit Agreement, among other things, increased the revolving credit facility to $230.0 million , provided a term loan for $16.1 million and extended the maturity date of the borrowings under the Amended Credit Agreement to July 31, 2019. The revolving credit facility includes a Canadian sub-limit of $15.0 million and a European sub-limit of $10.0 million (which may be increased to $25.0 million ) for borrowings in those locations. The Amended Credit Agreement was further amended in accordance with Amendments No. 1, 2 and 3 to the Amended Credit Agreement, dated October 24, 2014, January 20, 2015 and March 12, 2015, respectively (the “Amendments”). The Amendments: • increase the revolving credit facility from $230.0 million to $275.0 million ; • increase the inventory advance rate from 50% to 60% , reducing back to 50% on a pro-rata quarterly basis over 36 months commencing April 1, 2015; • reload the term loan up to $35.0 million from $15.5 million , of which $30.1 million has been borrowed and is outstanding as of June 30, 2015 ; • increase the Canadian sub-limit up to $25.0 million from $15.0 million ; • increase the European sub-limit up to $25.0 million from $10.0 million ; and • provide minor pricing adjustments including pricing the first $22.0 million drawn on the revolver at LIBOR + 3.50% , reducing automatically on a pro-rata quarterly basis over 36 months commencing April 1, 2015. At the Company’s election, domestic amounts borrowed under the revolving credit facility may be borrowed at either: • LIBOR plus 1.5% to 2.5% ; or • the bank’s prime lending rate minus 0.25% to 1.25% . At the Company's election, amounts borrowed under the term loan may be borrowed at either: • LIBOR plus 2.0% to 3.0% ; or • the bank’s prime lending rate minus 0.75% to plus 0.25% . The LIBOR-based interest rate is dependent on the Company’s debt service coverage ratio, as defined in the Amended Credit Agreement. Amounts borrowed under the Canadian revolving credit facility provided by the Amended Credit Agreement may be borrowed at either: • the Canadian deposit offered rate plus 1.5% to 2.5% ; • the Canadian prime lending rate plus 0.0% to 1.0% ; or • the U.S. base rate plus 0.0% to 1.0% . Under the Amended Credit Agreement, a detailed borrowing base formula provides borrowing availability to the Company based on percentages of eligible accounts receivable and inventory. The term loan is amortized based on a seven -year schedule with the balance due at maturity. The Amended Credit Agreement also reduced the commitment fee for the revolving credit facility. Additionally, the Company has the option, pursuant to the Amended Credit Agreement, to increase the availability under the revolving credit facility by $25.0 million . The following table represents fair value information of the Company's Senior Notes, classified as Level 1, at June 30, 2015 and December 31, 2014 . The fair value was estimated using quoted market prices. June 30, 2015 December 31, 2014 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 267.3 $ 266.3 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s tax provision for interim periods is determined using an estimate of its annual effective income tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates the estimated annual effective income tax rate, and if the estimated income tax rate changes, a cumulative adjustment is made. The effective tax rate for the first six months of 2015 and 2014 was 34.5% . The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. As of June 30, 2015 , the Company recorded an increase to unrecognized tax benefits of approximately $0.2 million related to prior year tax positions and accrued interest. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation A summary of stock option activity as of June 30, 2015 and changes during the first six months of 2015 is presented below: 2015 Number of Shares Weighted Average Weighted Aggregate (In whole shares) (In millions) Outstanding - beginning of year 143,500 $ 16.76 Granted — — Exercised (60,000 ) 14.90 Canceled or expired — — Outstanding - end of period 83,500 $ 18.10 2.1 years $ 2.5 Options exercisable 83,500 $ 18.10 2.1 years $ 2.5 A summary of restricted share and performance share activity for the six months ended June 30, 2015 is as follows: 2015 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 344,932 $ 33.55 28,000 $ 20.30 Granted 41,000 49.35 120,000 48.72 Vested (139,748 ) 32.78 (14,000 ) 20.30 Canceled or expired (21,501 ) 40.47 — — Outstanding - end of period 224,683 $ 36.25 134,000 $ 45.75 Total stock-based compensation expense included in selling, general and administrative expenses during the first six months of 2015 and 2014 was $2.9 million and $2.5 million , respectively. As of June 30, 2015 , there was $14 million of unrecognized compensation cost related to non-vested stock-based compensation, which cost is expected to be recognized over a weighted average period of 1.9 years. |
Commitments, Contingencies and
Commitments, Contingencies and Litigation Judgment | 6 Months Ended |
Jun. 30, 2015 | |
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. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. IPSCO Tubulars Inc. d/b/a TMK IPSCO sued Ajax Tocco Magnethermic Corporation (“ATM”), a subsidiary of Park-Ohio Holdings Corporation, in the United States District Court for the Eastern District of Arkansas claiming that equipment supplied by ATM for heat treating certain steel pipe at IPSCO's Blytheville, Arkansas facility did not perform as required by the contract. The complaint alleged causes of action for breach of contract, gross negligence and constructive fraud. IPSCO sought approximately $10.0 million in damages plus an unspecified amount of punitive damages. ATM denied the allegations. ATM subsequently obtained summary judgment on the constructive fraud claim, which was dismissed by the district court prior to trial. The remaining claims were the subject of a bench trial that occurred in May 2013. After IPSCO presented its case, the district court entered partial judgment in favor of ATM, dismissing the gross negligence claim, a portion of the breach of contract claim, and any claim for punitive damages. The trial proceeded with respect to the remainder of IPSCO's claim for breach of contract. In September 2013, the district court issued a judgment in favor of IPSCO in the amount of $5.2 million , which the Company recognized and accrued for at that time. IPSCO subsequently filed a motion seeking to recover $3.8 million in attorneys' fees and costs. The district court reserved ruling on that issue pending an appeal. In October 2013, ATM filed an appeal with the U.S. Court of Appeals for the Eighth Circuit seeking reversal of the judgment in favor of IPSCO. In November 2013, IPSCO filed a cross-appeal seeking reversal of the dismissal of its claim for gross negligence and punitive damages. The Eighth Circuit issued an opinion in March 2015 affirming in part, reversing in part, and remanding the case. It affirmed the district court's determination that ATM was liable for breach of contract. It also affirmed the district court's dismissal of IPSCO's claim for gross negligence and punitive damages. However, the Eighth Circuit reversed nearly all of the damages awarded by the district court and remanded for further findings on the issue of damages, including whether consequential damages are barred under the express language of the contract. Because IPSCO did not appeal the award of $5.2 million in its favor, those damages may be decreased, but cannot be increased, on remand. IPSCO's motion to recover attorney's fees and costs is stayed pending the outcome of the proceedings on remand. In August 2013, the Company received a subpoena from the staff of the Securities and Exchange Commission (“SEC”) in connection with the staff’s investigation of a third party. At that time, the Company also learned that the U.S. Department of Justice (“DOJ”) is conducting a criminal investigation of the third party. In connection with its initial response 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. The Board of Directors of the Company 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 on its results of operations. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits The components of net periodic benefit (gains) costs recognized during interim periods were as follows: Pension Benefits Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 2015 2014 (In millions) Service costs $ 0.6 $ 0.5 $ 1.2 $ 1.1 $ — $ — $ — $ — Interest costs 0.6 0.6 1.2 1.2 0.2 0.1 0.3 0.3 Expected return on plan assets (2.5 ) (2.5 ) (5.0 ) (5.1 ) — — — — Recognized net actuarial loss — — — — 0.1 0.3 0.3 0.4 Net periodic benefit (gains) costs $ (1.3 ) $ (1.4 ) $ (2.6 ) $ (2.8 ) $ 0.3 $ 0.4 $ 0.6 $ 0.7 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of and changes in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Beginning balance $ (10.4 ) $ (8.7 ) $ (19.1 ) $ (5.1 ) $ (8.9 ) $ (14.0 ) Foreign currency translation adjustments (a) 2.7 — 2.7 (2.6 ) — (2.6 ) Recognition of actuarial loss (b) — 0.1 0.1 — 0.3 0.3 Ending balance $ (7.7 ) $ (8.6 ) $ (16.3 ) $ (7.7 ) $ (8.6 ) $ (16.3 ) Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Beginning balance $ 2.4 $ 0.5 $ 2.9 $ 2.8 $ 0.6 $ 3.4 Foreign currency translation adjustments (a) 1.4 — 1.4 1.0 — 1.0 Recognition of actuarial loss (b) — — — — (0.1 ) (0.1 ) Tax adjustment (c) — 0.1 0.1 — 0.1 0.1 Ending balance $ 3.8 $ 0.6 $ 4.4 $ 3.8 $ 0.6 $ 4.4 (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. (b) The recognition of actuarial losses are reclassified out of accumulated other comprehensive income (loss) 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 (loss) and included in income tax expense |
Weighted-Average Number of Shar
Weighted-Average Number of Shares Used in Computing Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Weighted-Average Number of Shares Used in Computing Earnings Per Share | 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: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In whole shares) Weighted average basic shares outstanding 12,230,100 12,086,973 12,198,169 12,055,678 Plus dilutive impact of employee stock awards 197,295 285,216 230,321 299,743 Weighted average diluted shares outstanding 12,427,395 12,372,189 12,428,490 12,355,421 Earnings per common share is computed as net income less net income attributable to noncontrolling interests divided by the weighted average basic shares outstanding. Diluted earnings per common share is computed as net income less net income attributable to noncontrolling interests 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 excluded in the computation of diluted earnings per share. For the three and six months ended June 30, 2015 and 2014 , there were no anti-dilutive shares. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 30, 2015, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on August 28, 2015 to shareholders of record as of the close of business on August 14, 2015 and will result in a cash outlay of approximately $1.6 million . |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Use of 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. |
New Accounting Pronouncements | Accounting Pronouncements Adopted In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity,” which raises the threshold for disposals to qualify as discontinued operations and requires new disclosures for discontinued operations and for individually material disposal transactions that do not meet the definition of a discontinued operation. The ASU is effective prospectively for reporting periods beginning with the first quarter of 2015. The adoption had no effect on our consolidated financial statement as it only applies to future disposals. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. generally accepted accounting principles and International Financial Reporting Standards. The issuance of a comprehensive and converged standard on revenue recognition is expected to enable financial statement users to better understand and consistently analyze an entity’s revenue across industries, transactions, and geographies. The ASU will require additional disclosures to help financial statement users better understand the nature, amount, timing, and potential uncertainty of the revenue that is recognized. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The ASU will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is currently evaluating the impact of adopting this guidance. In April 2015, the FASB issued ASU 2015-03, "Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs." The amendment requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs will continue to be reported as interest expense. This ASU is effective for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. Early adoption is permitted. The new guidance will be applied retrospectively to each prior period presented. The new guidance will only impact the presentation of the Company's financial position. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." The amendment requires an entity to measure inventory within the scope of this update at the lower of cost and net realizable value. This ASU is effective for fiscal years beginning after December 15, 2016 and interim periods within those fiscal years. Early adoption is permitted. The new guidance will be applied prospectively. The Company is currently evaluating the impact of adopting this guidance. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Results by business segment | Results by business segment were as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Net sales: Supply Technologies $ 150.2 $ 142.4 $ 301.6 $ 276.8 Assembly Components 139.8 122.0 280.3 230.1 Engineered Products 87.3 78.9 170.1 154.2 $ 377.3 $ 343.3 $ 752.0 $ 661.1 Income before income taxes: Supply Technologies $ 13.0 $ 10.4 $ 27.2 $ 20.5 Assembly Components 13.6 12.2 24.2 20.3 Engineered Products 5.2 10.7 11.4 21.3 Total segment operating income 31.8 33.3 62.8 62.1 Corporate costs (6.2 ) (7.2 ) (12.9 ) (13.8 ) Interest expense (6.9 ) (6.6 ) (13.7 ) (12.9 ) Income before income taxes $ 18.7 $ 19.5 $ 36.2 $ 35.4 June 30, 2015 December 31, 2014 (In millions) Identifiable assets: Supply Technologies $ 288.7 $ 277.6 Assembly Components 347.7 340.5 Engineered Products 248.3 246.9 General corporate 113.9 109.2 $ 998.6 $ 974.2 |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Schedule of acquisitions and acquisition-related costs | The following table summarizes the Company's recent acquisitions: Description Date of Transaction Purchase Consideration Acquired Segment (In millions) Saet S.p.A December 4, 2014 $ 22.1 * 100% of equity Engineered Products An Italy based leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions through its locations in Italy, China, India and Tennessee. Autoform Tool & Manufacturing October 10, 2014 $ 48.9 * 100% of equity Assembly Components An Indiana supplier of high pressure fuel lines and fuel rails used in Gasoline Direct Injection systems across a large number of engine platforms. Apollo Group Limited June 10, 2014 $ 6.5 * 100% of equity Supply Technologies A U.K. supply chain management services company providing Class C production components and supply chain solutions to aerospace customers worldwide. * Purchase consideration is net of cash acquired. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Receivables [Abstract] | |
Schedule of accounts receivable sold and losses recorded on the sales | The following table summarizes accounts receivable sold and the losses recorded on the sales of accounts receivable. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Accounts receivable sold $ 33.3 $ 23.2 $ 59.4 $ 46.2 Loss on sale of accounts receivable $ (0.2 ) $ (0.1 ) $ (0.3 ) $ (0.2 ) |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Components of inventory | The components of inventory consist of the following: June 30, 2015 December 31, 2014 (In millions) Finished goods $ 151.1 $ 146.0 Work in process 33.4 19.8 Raw materials and supplies 68.0 72.6 Inventories, net $ 252.5 $ 238.4 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill by segment for the periods ended June 30, 2015 and December 31, 2014 were as follows: Supply Technologies Assembly Components Engineered Products Total (In millions) Balance at January 1, 2014 $ 6.4 $ 49.0 $ 5.0 $ 60.4 Acquisitions 0.7 5.0 23.2 28.9 Foreign currency translation 0.5 — (0.3 ) 0.2 Balance at December 31, 2014 7.6 54.0 27.9 89.5 Foreign currency translation — — 0.1 0.1 Acquisition adjustments — 0.1 (15.0 ) (14.9 ) Balance at June 30, 2015 $ 7.6 $ 54.1 $ 13.0 $ 74.7 |
Other Intangible Assets (Tables
Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of finite-lived intangible assets | Information regarding other intangible assets as of June 30, 2015 and December 31, 2014 follows: June 30, 2015 December 31, 2014 Weighted Average Useful Life Acquisition Cost Accumulated Amortization Net Acquisition Cost Accumulated Amortization Net (In millions) Non-contractual customer relationships 12.5 years $ 76.8 $ 16.1 $ 60.7 $ 77.3 $ 13.2 $ 64.1 Indefinite-lived tradenames * 18.7 — 18.7 14.0 — 14.0 Technology 19.4 years 16.3 0.5 15.8 8.2 0.1 8.1 Other 8.9 years 4.1 2.4 1.7 4.1 2.2 1.9 Total $ 115.9 $ 19.0 $ 96.9 $ 103.6 $ 15.5 $ 88.1 * Not applicable, tradenames have an indefinite life. |
Schedule of indefinite-lived intangible assets | Information regarding other intangible assets as of June 30, 2015 and December 31, 2014 follows: June 30, 2015 December 31, 2014 Weighted Average Useful Life Acquisition Cost Accumulated Amortization Net Acquisition Cost Accumulated Amortization Net (In millions) Non-contractual customer relationships 12.5 years $ 76.8 $ 16.1 $ 60.7 $ 77.3 $ 13.2 $ 64.1 Indefinite-lived tradenames * 18.7 — 18.7 14.0 — 14.0 Technology 19.4 years 16.3 0.5 15.8 8.2 0.1 8.1 Other 8.9 years 4.1 2.4 1.7 4.1 2.2 1.9 Total $ 115.9 $ 19.0 $ 96.9 $ 103.6 $ 15.5 $ 88.1 * Not applicable, tradenames have an indefinite life. |
Information regarding amortization expense | Information regarding amortization expense of other intangibles assets follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 2014 2015 2014 (In millions) Amortization expense $ 1.5 $ 1.3 $ 3.2 $ 2.4 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in product warranty liability | The following table presents the changes in the Company’s product warranty liability for the six months ended June 30, 2015 and 2014 : 2015 2014 (In millions) Balance at January 1, $ 6.9 $ 5.4 Claims paid (2.2 ) (1.0 ) Warranty expense, net 1.4 1.6 Balance at June 30, $ 6.1 $ 6.0 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: Carrying Value at Issuance Date Maturity Date Interest Rate at June 30, 2015 June 30, 2015 December 31, 2014 (In millions) Senior Notes April 1, 2011 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit — July 31, 2019 1.69 % 186.9 162.0 Term loan — July 31, 2019 2.31 % 30.1 28.8 Other Various Various Various 3.6 3.0 Total debt 470.6 443.8 Less current maturities 13.4 9.4 Total long-term debt, net of current portion $ 457.2 $ 434.4 |
Fair value of debt | The following table represents fair value information of the Company's Senior Notes, classified as Level 1, at June 30, 2015 and December 31, 2014 . The fair value was estimated using quoted market prices. June 30, 2015 December 31, 2014 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 267.3 $ 266.3 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock option activity | A summary of stock option activity as of June 30, 2015 and changes during the first six months of 2015 is presented below: 2015 Number of Shares Weighted Average Weighted Aggregate (In whole shares) (In millions) Outstanding - beginning of year 143,500 $ 16.76 Granted — — Exercised (60,000 ) 14.90 Canceled or expired — — Outstanding - end of period 83,500 $ 18.10 2.1 years $ 2.5 Options exercisable 83,500 $ 18.10 2.1 years $ 2.5 |
Summary of restricted share and performance share activity | A summary of restricted share and performance share activity for the six months ended June 30, 2015 is as follows: 2015 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 344,932 $ 33.55 28,000 $ 20.30 Granted 41,000 49.35 120,000 48.72 Vested (139,748 ) 32.78 (14,000 ) 20.30 Canceled or expired (21,501 ) 40.47 — — Outstanding - end of period 224,683 $ 36.25 134,000 $ 45.75 |
Pension Plans and Other Postr35
Pension Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit (gains) costs recognized during interim periods were as follows: Pension Benefits Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 2015 2014 2015 2014 (In millions) Service costs $ 0.6 $ 0.5 $ 1.2 $ 1.1 $ — $ — $ — $ — Interest costs 0.6 0.6 1.2 1.2 0.2 0.1 0.3 0.3 Expected return on plan assets (2.5 ) (2.5 ) (5.0 ) (5.1 ) — — — — Recognized net actuarial loss — — — — 0.1 0.3 0.3 0.4 Net periodic benefit (gains) costs $ (1.3 ) $ (1.4 ) $ (2.6 ) $ (2.8 ) $ 0.3 $ 0.4 $ 0.6 $ 0.7 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Changes in accumulated comprehensive income (loss) | The components of and changes in accumulated other comprehensive income (loss) for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended June 30, 2015 Six Months Ended June 30, 2015 Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Beginning balance $ (10.4 ) $ (8.7 ) $ (19.1 ) $ (5.1 ) $ (8.9 ) $ (14.0 ) Foreign currency translation adjustments (a) 2.7 — 2.7 (2.6 ) — (2.6 ) Recognition of actuarial loss (b) — 0.1 0.1 — 0.3 0.3 Ending balance $ (7.7 ) $ (8.6 ) $ (16.3 ) $ (7.7 ) $ (8.6 ) $ (16.3 ) Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Beginning balance $ 2.4 $ 0.5 $ 2.9 $ 2.8 $ 0.6 $ 3.4 Foreign currency translation adjustments (a) 1.4 — 1.4 1.0 — 1.0 Recognition of actuarial loss (b) — — — — (0.1 ) (0.1 ) Tax adjustment (c) — 0.1 0.1 — 0.1 0.1 Ending balance $ 3.8 $ 0.6 $ 4.4 $ 3.8 $ 0.6 $ 4.4 (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. (b) The recognition of actuarial losses are reclassified out of accumulated other comprehensive income (loss) 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 (loss) and included in income tax expense |
Weighted-Average Number of Sh37
Weighted-Average Number of Shares Used in Computing Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of 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: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (In whole shares) Weighted average basic shares outstanding 12,230,100 12,086,973 12,198,169 12,055,678 Plus dilutive impact of employee stock awards 197,295 285,216 230,321 299,743 Weighted average diluted shares outstanding 12,427,395 12,372,189 12,428,490 12,355,421 |
Segments (Schedule of Segment I
Segments (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Net sales: | |||||
Net sales | $ 377.3 | $ 343.3 | $ 752 | $ 661.1 | |
Income before income taxes: | |||||
Total segment operating income | 25.6 | 26.1 | 49.9 | 48.3 | |
Interest expense | (6.9) | (6.6) | (13.7) | (12.9) | |
Income before income taxes | 18.7 | 19.5 | 36.2 | 35.4 | |
Identifiable assets: | |||||
Identifiable assets | 998.6 | 998.6 | $ 974.2 | ||
Operating Segments [Member] | |||||
Net sales: | |||||
Net sales | 377.3 | 343.3 | 752 | 661.1 | |
Income before income taxes: | |||||
Total segment operating income | 31.8 | 33.3 | 62.8 | 62.1 | |
Operating Segments [Member] | Supply Technologies [Member] | |||||
Net sales: | |||||
Net sales | 150.2 | 142.4 | 301.6 | 276.8 | |
Income before income taxes: | |||||
Total segment operating income | 13 | 10.4 | 27.2 | 20.5 | |
Identifiable assets: | |||||
Identifiable assets | 288.7 | 288.7 | 277.6 | ||
Operating Segments [Member] | Assembly Components [Member] | |||||
Net sales: | |||||
Net sales | 139.8 | 122 | 280.3 | 230.1 | |
Income before income taxes: | |||||
Total segment operating income | 13.6 | 12.2 | 24.2 | 20.3 | |
Identifiable assets: | |||||
Identifiable assets | 347.7 | 347.7 | 340.5 | ||
Operating Segments [Member] | Engineered Products [Member] | |||||
Net sales: | |||||
Net sales | 87.3 | 78.9 | 170.1 | 154.2 | |
Income before income taxes: | |||||
Total segment operating income | 5.2 | 10.7 | 11.4 | 21.3 | |
Identifiable assets: | |||||
Identifiable assets | 248.3 | 248.3 | 246.9 | ||
Segment Reconciling Items [Member] | |||||
Income before income taxes: | |||||
Corporate costs | (6.2) | (7.2) | (12.9) | (13.8) | |
Interest expense | (6.9) | $ (6.6) | (13.7) | $ (12.9) | |
General corporate [Member] | |||||
Identifiable assets: | |||||
Identifiable assets | $ 113.9 | $ 113.9 | $ 109.2 |
Segments (Details)
Segments (Details) | 6 Months Ended |
Jun. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Acquisitions (Schedule of Acqui
Acquisitions (Schedule of Acquisitions) (Details) - USD ($) $ in Millions | Dec. 04, 2014 | Oct. 10, 2014 | Jun. 10, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 0 | $ 5.9 | |||
Saet S.p.A [Member] | Engineered Products [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 22.1 | ||||
Percentage of equity acquired | 100.00% | ||||
Autoform Tool & Manufacturing [Member] | Assembly Components [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 48.9 | ||||
Percentage of equity acquired | 100.00% | ||||
Apollo Group Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 6.5 | ||||
Apollo Group Limited [Member] | Supply Technologies [Member] | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration | $ 6.5 | ||||
Percentage of equity acquired | 100.00% |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Jun. 10, 2014 | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 04, 2014 | Oct. 10, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||||||
Purchase consideration | $ 0 | $ 5.9 | ||||||
Goodwill | $ 74.7 | 74.7 | $ 89.5 | $ 60.4 | ||||
Decrease to goodwill from acquisition adjustments | 14.9 | |||||||
Apollo Group Limited [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration, based on achievement of certain EBITDA targets | $ 2.4 | 1.8 | $ 1.8 | |||||
Contingent consideration, measurement period for EBITDA targets | 2 years | |||||||
Contingent consideration, fair value at date of acquisition | $ 1.1 | |||||||
Purchase consideration | $ 6.5 | |||||||
Autoform and Apollo [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 5.8 | |||||||
Saet S.p.A [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Goodwill | $ 23.2 | |||||||
Decrease to goodwill from acquisition adjustments | 15 | |||||||
Technology-Based Intangible Assets [Member] | Saet S.p.A [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Increase in intangible assets from acquisition adjustments | 8.7 | |||||||
Trade Names [Member] | Saet S.p.A [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Increase in intangible assets from acquisition adjustments | $ 4.7 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Receivables [Abstract] | ||||
Accounts receivable sold | $ 33.3 | $ 23.2 | $ 59.4 | $ 46.2 |
Loss on sale of accounts receivable | $ (0.2) | $ (0.1) | $ (0.3) | $ (0.2) |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Components of inventory | ||
Finished goods | $ 151.1 | $ 146 |
Work in process | 33.4 | 19.8 |
Raw materials and supplies | 68 | 72.6 |
Inventories, net | $ 252.5 | $ 238.4 |
Goodwill (Change in Goodwill) (
Goodwill (Change in Goodwill) (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 89.5 | $ 60.4 |
Acquisitions | 28.9 | |
Foreign currency translation | 0.1 | 0.2 |
Acquisition adjustments | (14.9) | |
Goodwill, end of period | 74.7 | 89.5 |
Supply Technologies [Member] | Operating Segments [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 7.6 | 6.4 |
Acquisitions | 0.7 | |
Foreign currency translation | 0 | 0.5 |
Acquisition adjustments | 0 | |
Goodwill, end of period | 7.6 | 7.6 |
Assembly Components [Member] | Operating Segments [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 54 | 49 |
Acquisitions | 5 | |
Foreign currency translation | 0 | 0 |
Acquisition adjustments | 0.1 | |
Goodwill, end of period | 54.1 | 54 |
Engineered Products [Member] | Operating Segments [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 27.9 | 5 |
Acquisitions | 23.2 | |
Foreign currency translation | 0.1 | (0.3) |
Acquisition adjustments | (15) | |
Goodwill, end of period | $ 13 | $ 27.9 |
Other Intangible Assets (Schedu
Other Intangible Assets (Schedule of Other Intangible Assets) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Acquisition Costs, Total | $ 115.9 | $ 103.6 |
Accumulated Amortization | 19 | 15.5 |
Net, Total | 96.9 | 88.1 |
Indefinite-lived tradenames [Member] | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Acquisition Costs, Indefinite-lived | $ 18.7 | 14 |
Non-contractual customer relationships [Member] | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 12 years 6 months | |
Acquisition Costs, Finite-lived | $ 76.8 | 77.3 |
Accumulated Amortization | 16.1 | 13.2 |
Net, Finite-lived | $ 60.7 | 64.1 |
Technology [Member] | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 19 years 4 months 24 days | |
Acquisition Costs, Finite-lived | $ 16.3 | 8.2 |
Accumulated Amortization | 0.5 | 0.1 |
Net, Finite-lived | $ 15.8 | 8.1 |
Other [Member] | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Weighted Average Useful Life | 8 years 10 months 24 days | |
Acquisition Costs, Finite-lived | $ 4.1 | 4.1 |
Accumulated Amortization | 2.4 | 2.2 |
Net, Finite-lived | $ 1.7 | $ 1.9 |
Other Intangible Assets (Amorti
Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 1.5 | $ 1.3 | $ 3.2 | $ 2.4 |
Accrued Warranty Costs (Details
Accrued Warranty Costs (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Changes in product warranty liability [Roll Forward] | ||
Balance at beginning of period | $ 6.9 | $ 5.4 |
Claims paid | (2.2) | (1) |
Warranty expense, net | 1.4 | 1.6 |
Balance at end of period | $ 6.1 | $ 6 |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 470.6 | $ 443.8 |
Less current maturities | 13.4 | 9.4 |
Total long-term debt, net of current portion | $ 457.2 | 434.4 |
Revolving credit [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate at end of period | 1.69% | |
Total debt | $ 186.9 | 162 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate at end of period | 2.31% | |
Total debt | $ 30.1 | 28.8 |
8.125% senior notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.125% | |
Total debt | $ 250 | 250 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 3.6 | $ 3 |
Financing Arrangements (Fair Va
Financing Arrangements (Fair Value of Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 470.6 | $ 443.8 |
Level 1 [Member] | Carrying amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | 250 | 250 |
Level 1 [Member] | Fair value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 267.3 | $ 266.3 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) | Mar. 12, 2015 | Jul. 31, 2014 | Jun. 30, 2015 | Oct. 23, 2014 |
Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Amount drawn | $ 30,100,000 | |||
The Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 230,000,000 | $ 230,000,000 | ||
Inventory advance rate percentage | 60.00% | 50.00% | ||
Term of debt instrument | 7 years | |||
Option to increase availability | $ 25,000,000 | |||
The Amended Credit Agreement [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 15,000,000 | $ 15,000,000 | ||
The Amended Credit Agreement [Member] | Revolving Credit Facility, European Sub-Limit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 10,000,000 | 10,000,000 | ||
Maximum borrowing capacity, potential increase | 25,000,000 | |||
The Amended Credit Agreement [Member] | Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 16,100,000 | |||
The Amended Credit Agreement [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 1.50% | |||
The Amended Credit Agreement [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 2.50% | |||
The Amended Credit Agreement [Member] | LIBOR [Member] | Term Loan [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 2.00% | |||
The Amended Credit Agreement [Member] | LIBOR [Member] | Term Loan [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 3.00% | |||
The Amended Credit Agreement [Member] | Prime lending rate [Member] | Revolving Credit Facility [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | (0.25%) | |||
The Amended Credit Agreement [Member] | Prime lending rate [Member] | Revolving Credit Facility [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | (1.25%) | |||
The Amended Credit Agreement [Member] | Prime lending rate [Member] | Term Loan [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | (0.75%) | |||
The Amended Credit Agreement [Member] | Prime lending rate [Member] | Term Loan [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 0.25% | |||
The Amended Credit Agreement [Member] | Canadian deposit offered rate [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 1.50% | |||
The Amended Credit Agreement [Member] | Canadian deposit offered rate [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 2.50% | |||
The Amended Credit Agreement [Member] | Canadian prime lending rate [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 0.00% | |||
The Amended Credit Agreement [Member] | Canadian prime lending rate [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 1.00% | |||
The Amended Credit Agreement [Member] | US base rate [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 0.00% | |||
The Amended Credit Agreement [Member] | US base rate [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 1.00% | |||
Amendment No. 1 to the Amended Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 275,000,000 | |||
Inventory advance rate percentage to be reduced to | 50.00% | |||
Term over which inventory advance rate percentage reduces | 36 months | |||
Amount drawn | $ 22,000,000 | |||
Term over which basis spread on variable interest rate reduces | 36 months | |||
Amendment No. 1 to the Amended Credit Agreement [Member] | Revolving Credit Facility, Canadian Sub-Limit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 25,000,000 | |||
Amendment No. 1 to the Amended Credit Agreement [Member] | Revolving Credit Facility, European Sub-Limit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | 25,000,000 | |||
Amendment No. 1 to the Amended Credit Agreement [Member] | Term Loan [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity | $ 35,000,000 | |||
Amount drawn | $ 15,500,000 | |||
Amendment No. 1 to the Amended Credit Agreement [Member] | LIBOR [Member] | Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable interest rate - plus (minus) | 3.50% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 34.50% | 34.50% |
Increase to unrecognized tax benefits related to prior tax year positions | $ 0.2 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) - Jun. 30, 2015 - USD ($) $ / shares in Units, $ in Millions | Total |
Number of Shares [Roll Forward] | |
Outstanding - beginning of year, number of shares | 143,500 |
Granted, number of shares | 0 |
Exercised, number of shares | (60,000) |
Canceled or expired, number of shares | 0 |
Outstanding - end of year, number of shares | 83,500 |
Options exercisable, number of shares | 83,500 |
Weighted Average Exercise Price [Abstract] | |
Outstanding - beginning of year, Weighted Average Exercise Price (in dollars per share) | $ 16.76 |
Granted, Weighted Average Exercise Price (in dollars per share) | 0 |
Exercised, Weighted Average Exercise Price (in dollars per share) | 14.90 |
Canceled or Expired, Weighted Average Exercise Price (in dollars per share) | 0 |
Outstanding - end of year, Weighted Average Exercise Price (in dollars per share) | 18.10 |
Options Exercisable - end of year, Weighted Average Exercise Price (in dollars per share) | $ 18.10 |
Outstanding - end of year, Weighted Average Remaining Contractual Term | 2 years 1 month 6 days |
Options exercisable, Weighted Average Remaining Contractual Term | 2 years 1 month 6 days |
Outstanding - end of year, Aggregate Intrinsic Value | $ 2.5 |
Options exercisable, Aggregate Intrinsic Value | $ 2.5 |
Stock-Based Compensation (Sum53
Stock-Based Compensation (Summary of Restricted Share and Performance Share Activity) (Details) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Time-Based [Member] | |
Number of Shares [Roll Forward] | |
Outstanding - beginning of year, number of shares | 344,932 |
Granted, number of shares | 41,000 |
Vested, number of shares | (139,748) |
Canceled or expired, number of shares | (21,501) |
Outstanding - end of year, number of shares | 224,683 |
Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $ 33.55 |
Granted, weighted average grant date fair value (in dollars per share) | 49.35 |
Vested, weighted average grant date fair value (in dollars per share) | 32.78 |
Canceled or expired, weighted average grant date fair value (in dollars per share) | 40.47 |
Outstanding - end of year, weighted average grant date fair value (in dollars per share) | $ 36.25 |
Performance-Based [Member] | |
Number of Shares [Roll Forward] | |
Outstanding - beginning of year, number of shares | 28,000 |
Granted, number of shares | 120,000 |
Vested, number of shares | (14,000) |
Canceled or expired, number of shares | 0 |
Outstanding - end of year, number of shares | 134,000 |
Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $ 20.30 |
Granted, weighted average grant date fair value (in dollars per share) | 48.72 |
Vested, weighted average grant date fair value (in dollars per share) | 20.30 |
Canceled or expired, weighted average grant date fair value (in dollars per share) | 0 |
Outstanding - end of year, weighted average grant date fair value (in dollars per share) | $ 45.75 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 2.9 | $ 2.5 |
Unrecognized compensation cost related to non-vested stock-based compensation | $ 14 | |
Weighted average period | 1 year 10 months 24 days |
Commitments, Contingencies an55
Commitments, Contingencies and Litigation Judgment (Details) - TMK IPSCO [Member] - USD ($) $ in Millions | 1 Months Ended | |
Sep. 30, 2013 | May. 31, 2013 | |
Loss Contingencies [Line Items] | ||
Direct damages sought | $ 10 | |
Damages awarded | $ 5.2 | |
Additional damages sought | $ 3.8 |
Pension Plans and Other Postr56
Pension Plans and Other Postretirement Benefits (Components of net periodic benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service costs | $ 0.6 | $ 0.5 | $ 1.2 | $ 1.1 |
Interest costs | 0.6 | 0.6 | 1.2 | 1.2 |
Expected return on plan assets | (2.5) | (2.5) | (5) | (5.1) |
Recognized net actuarial loss | 0 | 0 | 0 | 0 |
Net periodic benefit (gains) costs | (1.3) | (1.4) | (2.6) | (2.8) |
Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service costs | 0 | 0 | 0 | 0 |
Interest costs | 0.2 | 0.1 | 0.3 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 0.1 | 0.3 | 0.3 | 0.4 |
Net periodic benefit (gains) costs | $ 0.3 | $ 0.4 | $ 0.6 | $ 0.7 |
Accumulated Other Comprehensi57
Accumulated Other Comprehensive Income (Loss) (Components of accumulated comprehensive loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (14) | |||
Ending balance | $ (16.3) | (16.3) | ||
Cumulative Translation Adjustment [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (10.4) | $ 2.4 | (5.1) | $ 2.8 |
Foreign currency translation adjustments | 2.7 | 1.4 | (2.6) | 1 |
Recognition of actuarial loss | 0 | 0 | 0 | 0 |
Tax adjustment | 0 | 0 | ||
Ending balance | (7.7) | 3.8 | (7.7) | 3.8 |
Pension and Postretirement Benefits [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (8.7) | 0.5 | (8.9) | 0.6 |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Recognition of actuarial loss | 0.1 | 0 | 0.3 | (0.1) |
Tax adjustment | 0.1 | 0.1 | ||
Ending balance | (8.6) | 0.6 | (8.6) | 0.6 |
Accumulated Other Comprehensive Income [Member] | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (19.1) | 2.9 | (14) | 3.4 |
Foreign currency translation adjustments | 2.7 | 1.4 | (2.6) | 1 |
Recognition of actuarial loss | 0.1 | 0 | 0.3 | (0.1) |
Tax adjustment | 0.1 | 0.1 | ||
Ending balance | $ (16.3) | $ 4.4 | $ (16.3) | $ 4.4 |
Weighted-Average Number of Sh58
Weighted-Average Number of Shares Used in Computing Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Weighted average basic shares outstanding | 12,230,100 | 12,086,973 | 12,198,169 | 12,055,678 |
Plus dilutive impact of employee stock awards | 197,295 | 285,216 | 230,321 | 299,743 |
Weighted average diluted shares outstanding | 12,427,395 | 12,372,189 | 12,428,490 | 12,355,421 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Subsequent Event [Line Items] | |||||
Quarterly dividend declared, per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.250 | $ 0.125 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Quarterly dividend declared, per common share (in dollars per share) | $ 0.125 | ||||
Quarterly dividend declared, cash outlay | $ 1.6 |