Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
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, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,553,169 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 58 | $ 62 |
Accounts receivable, net | 200.4 | 199.3 |
Inventories, net | 248.9 | 249 |
Other current assets | 45.8 | 39.3 |
Total current assets | 553.1 | 549.6 |
Property, plant and equipment, net | 148.6 | 151.3 |
Goodwill | 81.7 | 82 |
Intangible assets, net | 89.1 | 92.8 |
Other long-term assets | 68.6 | 66.4 |
Total assets | 941.1 | 942.1 |
Current liabilities: | ||
Trade accounts payable | 134.9 | 129.7 |
Accrued expenses and other | 96.2 | 95.5 |
Total current liabilities | 231.1 | 225.2 |
Long-term liabilities, less current portion: | ||
Debt | 434 | 445.8 |
Deferred tax liabilities | 20.5 | 20.4 |
Other long-term liabilities | 34.3 | 38.5 |
Total long-term liabilities | 488.8 | 504.7 |
Capital stock, par value $1 per share | ||
Serial preferred stock: Authorized -- 632,470 shares: Issued and outstanding -- none | 0 | 0 |
Common stock: Authorized -- 40,000,000 shares; Issued -- 14,827,202 shares in 2016 and 14,653,985 in 2015 | 14.7 | 14.7 |
Additional paid-in capital | 104.5 | 99 |
Retained earnings | 176.9 | 168.3 |
Treasury stock, at cost, 2,437,737 shares in 2016 and 2,383,903 shares in 2015 | (48.3) | (46.7) |
Accumulated other comprehensive loss | (33.5) | (30) |
Total Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 214.3 | 205.3 |
Noncontrolling interest | 6.9 | 6.9 |
Total equity | 221.2 | 212.2 |
Total liabilities and shareholders' equity | $ 941.1 | $ 942.1 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
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) | 14,827,202 | 14,653,985 |
Treasury stock, shares (in shares) | 2,437,737 | 2,383,903 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 329.4 | $ 377.3 | $ 657.4 | $ 752 |
Cost of sales | 275.1 | 316.9 | 555.3 | 633.2 |
Gross profit | 54.3 | 60.4 | 102.1 | 118.8 |
Selling, general and administrative expenses | 34 | 34.8 | 66.5 | 68.9 |
Asset impairment | 0 | 0 | 4 | 0 |
Operating income | 20.3 | 25.6 | 31.6 | 49.9 |
Interest expense | 7 | 6.9 | 14.1 | 13.7 |
Income before income taxes | 13.3 | 18.7 | 17.5 | 36.2 |
Income tax expense | 4.3 | 6.1 | 5.8 | 12.5 |
Net income | 9 | 12.6 | 11.7 | 23.7 |
Net income attributable to noncontrolling interest | 0 | (0.2) | 0 | (0.5) |
Net income attributable to ParkOhio common shareholders | $ 9 | $ 12.4 | $ 11.7 | $ 23.2 |
Earnings per common share attributable to ParkOhio common shareholders: | ||||
Basic (in dollars per share) | $ 0.74 | $ 1.02 | $ 0.97 | $ 1.90 |
Diluted (in dollars per share) | $ 0.73 | $ 1 | $ 0.96 | $ 1.87 |
Weighted-average shares used to compute earnings per share: | ||||
Basic (in shares) | 12,112,575 | 12,230,100 | 12,094,695 | 12,198,169 |
Diluted (in shares) | 12,276,858 | 12,427,395 | 12,246,020 | 12,428,490 |
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.250 | $ 0.250 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 9 | $ 12.6 | $ 11.7 | $ 23.7 |
Other comprehensive income: | ||||
Foreign currency translation gain (loss) | (6.5) | 2.7 | (3.9) | (2.6) |
Pension and other postretirement benefit adjustments, net of tax | 0.2 | 0.1 | 0.4 | 0.3 |
Total other comprehensive income (loss) | (6.3) | 2.8 | (3.5) | (2.3) |
Total comprehensive income, net of tax | 2.7 | 15.4 | 8.2 | 21.4 |
Comprehensive income attributable to noncontrolling interest | 0 | (0.2) | 0 | (0.5) |
Comprehensive income attributable to ParkOhio common shareholders | $ 2.7 | $ 15.2 | $ 8.2 | $ 20.9 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
OPERATING ACTIVITIES | ||
Net income | $ 11.7 | $ 23.7 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 14.8 | 14 |
Asset impairment | 4 | 0 |
Share-based compensation | 5.5 | 2.9 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1) | (10.6) |
Inventories | (0.4) | (15.7) |
Prepaid and other current assets | (6.2) | (2.7) |
Accounts payable and accrued expenses | 5.4 | (17.7) |
Other noncurrent liabilities | (4.6) | 5.2 |
Other | (1.7) | (4.1) |
Net cash provided (used) by operating activities | 27.5 | (5) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (14) | (19.9) |
Net cash used by investing activities | (14) | (19.9) |
FINANCING ACTIVITIES | ||
Proceeds from term loans and other debt | 6.2 | 3.4 |
Payments on term loans and other debt | (2.2) | (1.5) |
(Payments) proceeds from revolving credit facility, net | (13.5) | 24.9 |
Payments on capital lease facilities, net | (1.6) | 0 |
Dividends | (3.1) | (3.1) |
Purchases of treasury stock | (1.6) | (4.4) |
Payment of acquisition earn-out | (2) | 0 |
Net cash (used) provided by financing activities | (17.8) | 19.3 |
Effect of exchange rate changes on cash | 0.3 | (1.5) |
Decrease in cash and cash equivalents | (4) | (7.1) |
Cash and cash equivalents at beginning of period | 62 | 58 |
Cash and cash equivalents at end of period | 58 | 50.9 |
Income taxes paid | 2.4 | 7.6 |
Interest paid | $ 13.1 | $ 12.7 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
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 intercompany accounts and 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, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The balance sheet at December 31, 2015 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, 2015 . 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, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” The ASU 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. In August 2015, the FASB issued an amendment to this standard to address line of credit arrangements, which would allow an entity to present debt issuance costs as an asset and subsequently amortize the debt issuance costs ratably over the term of the line of credit arrangement. The Company adopted this ASU during the first quarter of 2016 and applied this standard retrospectively to 2015. The new guidance only impacted the presentation of the Company's financial position and did not affect the Company's results of operations or cash flows. Refer to Note 7 for the impact on our consolidated balance sheet at December 31, 2015. 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 January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in the ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The FASB also is addressing measurement of credit losses on financial assets in a separate project. The ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The new guidance will be applied prospectively. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” The ASU establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease term of more than twelve months. The ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the FASB issued ASU 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The ASU is effective for fiscal years beginning with the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segments | Segments Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs, certain non-cash charges and net interest expense. Results by business segment were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In millions) Net sales: Supply Technologies $ 132.9 $ 150.2 $ 262.8 $ 301.6 Assembly Components 134.3 139.8 266.0 280.3 Engineered Products 62.2 87.3 128.6 170.1 $ 329.4 $ 377.3 $ 657.4 $ 752.0 Segment operating income: Supply Technologies $ 10.9 $ 13.0 $ 21.1 $ 27.2 Assembly Components 14.2 13.6 24.4 24.2 Engineered Products 3.2 5.2 4.6 11.4 Total segment operating income 28.3 31.8 50.1 62.8 Corporate costs (8.0 ) (6.2 ) (14.5 ) (12.9 ) Asset impairment — — (4.0 ) — Interest expense (7.0 ) (6.9 ) (14.1 ) (13.7 ) Income before income taxes $ 13.3 $ 18.7 $ 17.5 $ 36.2 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventory consist of the following: June 30, 2016 December 31, 2015 (In millions) Finished goods $ 140.9 $ 147.5 Work in process 40.8 37.4 Raw materials and supplies 67.2 64.1 Inventories, net $ 248.9 $ 249.0 |
Accrued Warranty Costs
Accrued Warranty Costs | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 : 2016 2015 (In millions) Balance at January 1, $ 6.1 $ 6.9 Claims paid (1.0 ) (2.2 ) Warranty expense, net 0.8 1.4 Balance at June 30, $ 5.9 $ 6.1 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
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 its estimated annual effective income tax rate, and if the estimated income tax rate changes, a cumulative adjustment is made. The effective income tax rate for the first six months of 2016 and 2015 was 33.1% and 34.5% , respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the three - and six -months ended June 30, 2016 , the Company recorded an increase to unrecognized tax benefits of approximately $0.1 million and $0.1 million , respectively, related to prior year tax positions and accrued interest. It is reasonably possible that, within the next twelve months, the amount of gross unrecognized tax benefits could be reduced by approximately $3.0 million as a result of the closure of tax statutes related to existing uncertain tax positions. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 June 30, 2016 December 31, 2015 (In millions) Senior Notes April 1, 2011 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility — July 31, 2019 2.69 % 155.6 169.0 Term loan — July 31, 2019 2.51 % 25.6 27.9 Other, including capital leases Various Various Various 26.0 21.2 Less current maturities (19.0 ) (17.8 ) Less unamortized debt issuance costs (1) (4.2 ) (4.5 ) Total long-term debt, net $ 434.0 $ 445.8 (1) Prior to the adoption of ASU 2015-03, debt issuance costs of $4.5 million were previously reflected in the December 31, 2015 consolidated balance sheet in other long-term assets. On April 22, 2016, the Company further amended its revolving credit facility (the “Amended Credit Agreement”) to: • increase the revolving credit facility to $300.0 million ; • increase the inventory advance rate from 50% to 65% , reducing back to 50% on a pro-rata quarterly basis over 36 months commencing July 1, 2016; • reload the term loan up to $35.0 million , of which $25.6 million has been borrowed and is outstanding as of June 30, 2016 ; • increase the Canadian sub-limit up to $35.0 million ; • increase the European sub-limit up to $25.0 million ; and • provide minor pricing adjustments including pricing the first $35.0 million drawn on the revolving credit facility at LIBOR plus 3.50% , reducing automatically on a pro-rata quarterly basis over 36 months commencing July 1, 2016. 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. At the Company’s election, domestic amounts borrowed under the Amended Credit Agreement 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% . 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 sub-limit 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% . On October 21, 2015, the Company, through its Southwest Steel Processing LLC subsidiary, entered into a financing agreement with the Arkansas Development Finance Authority. The agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The loan agreement matures in September 2025. The Company had $5.6 million of borrowings outstanding under this agreement as of June 30, 2016 . On August 13, 2015, the Company entered into a Capital Lease Agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for capital leases. Capital lease obligations of $17.4 million were borrowed under the Lease Agreement to acquire machinery and equipment as of June 30, 2016 . The Term loan is amortized based on a seven -year schedule with the balance due at maturity (July 31, 2019). The Amended Credit Agreement also reduced the commitment fee for the revolving credit facility. 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 following table represents fair value information of the Senior Notes, classified as Level 1 using estimated quoted market prices. June 30, 2016 December 31, 2015 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 251.3 $ 263.4 |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and changes during the first six months of 2016 is presented below: 2016 Number of Shares Weighted Average Weighted Aggregate (In whole shares) (In millions) Outstanding - beginning of year 60,000 $ 19.41 Granted — — Exercised — — Canceled or expired — — Outstanding - end of period 60,000 $ 19.41 1.4 years $ 1.7 Options exercisable 60,000 $ 19.41 1.4 years $ 1.7 A summary of restricted share activity for the six months ended June 30, 2016 is as follows: 2016 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 208,429 $ 36.61 120,000 $ 48.72 Granted 58,570 30.72 165,000 34.78 Vested (99,998 ) 40.16 (40,000 ) 48.72 Performance-based to time-based (a) 80,000 48.72 (80,000 ) 48.72 Canceled or expired (834 ) 34.53 — — Outstanding - end of period 246,167 $ 37.71 165,000 $ 34.78 (a) During the second quarter of 2016, 40,000 of the performance-based restricted shares granted in 2015 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 80,000 shares became time-based, vesting over the remaining two years of the requisite service period. During the first quarter of 2016, 1,500 shares were awarded, vested and expensed at the time of the award. The value of the award was immaterial. Total stock-based compensation expense included in selling, general and administrative expenses during the first six months of 2016 and 2015 was $5.5 million and $2.9 million , respectively. As of June 30, 2016 , there was $12.6 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 1.6 years. |
Commitments, Contingencies and
Commitments, Contingencies and Litigation Judgment | 6 Months Ended |
Jun. 30, 2016 | |
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. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. 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 could be decreased, but could not be increased, on remand. On remand, the district court entered an order once again awarding IPSCO $5.2 million in damages. In December 2015, ATM filed a second appeal with the Eighth Circuit seeking reversal of the damages award. In March 2016, the district court issued an order granting, in part, IPSCO's motion for fees and costs and awarding $2.2 million to IPSCO, which the Company accrued for as of December 31, 2015. ATM has appealed that decision. 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. 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, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits The components of net periodic benefit (income) costs recognized during interim periods were as follows: Pension Benefits Other Postretirement Benefits (OPEB) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 2016 2015 2016 2015 (In millions) Service costs $ 0.6 $ 0.6 $ 1.2 $ 1.2 $ — $ — $ — $ — Interest costs 0.4 0.6 0.9 1.2 0.1 0.2 0.2 0.3 Expected return on plan assets (2.4 ) (2.5 ) (4.8 ) (5.0 ) — — — — Recognized net actuarial loss 0.3 — 0.6 — 0.1 0.1 0.2 0.3 Net periodic benefit (income) costs $ (1.1 ) $ (1.3 ) $ (2.1 ) $ (2.6 ) $ 0.2 $ 0.3 $ 0.4 $ 0.6 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of and changes in accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015 were as follows: Six Months Ended June 30, 2016 Cumulative Translation Adjustment Pension and OPEB Total (In millions) Beginning balance $ (16.9 ) $ (13.1 ) $ (30.0 ) Foreign currency translation adjustments (a) (3.9 ) — (3.9 ) Pension and OPEB activity, net of tax adjustments (b) — 0.4 0.4 Ending balance $ (20.8 ) $ (12.7 ) $ (33.5 ) Six Months Ended June 30, 2015 Cumulative Translation Adjustment Pension and OPEB Total (In millions) Beginning balance $ (5.1 ) $ (8.9 ) $ (14.0 ) Foreign currency translation adjustments (a) (2.6 ) — (2.6 ) Pension and OPEB activity, net of tax adjustments (b) — 0.3 0.3 Ending balance $ (7.7 ) $ (8.6 ) $ (16.3 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently re-invested. (b) The tax adjustments are reclassified out of accumulated other comprehensive income 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, 2016 | |
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, 2016 2015 2016 2015 (In whole shares) Weighted average basic shares outstanding 12,112,575 12,230,100 12,094,695 12,198,169 Plus: Dilutive impact of employee stock awards 164,283 197,295 151,325 230,321 Weighted average diluted shares outstanding 12,276,858 12,427,395 12,246,020 12,428,490 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. There were no anti-dilutive shares for the three - and six -months ended June 30, 2016 and 2015. |
Asset Impairment
Asset Impairment | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Asset Impairment | Asset Impairment In the first quarter of 2016, due to sales volume declines in certain programs with an automotive customer, the Company evaluated its long-lived assets in accordance with ASU 360 "Property, Plant and Equipment." The Company determined whether the carrying amount of its long-lived assets with a net book value of $ 5.2 million was recoverable by comparing the carrying amount to the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the assets. As the carrying value of the assets exceeded the expected undiscounted cash flows, the Company estimated the fair value of these assets to determine whether impairment existed. The fair value of the assets was estimated, using Level 2 inputs, based on the expected sale proceeds of similar machinery and equipment as determined using third party quotes and appraisals. As a result of the Company's analysis, the Company recorded an asset impairment charge of $ 4.0 million . |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 29, 2016, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on August 26, 2016 to shareholders of record as of the close of business on August 12, 2016 and will result in a cash outlay of approximately $1.5 million . |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
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 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” The ASU 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. In August 2015, the FASB issued an amendment to this standard to address line of credit arrangements, which would allow an entity to present debt issuance costs as an asset and subsequently amortize the debt issuance costs ratably over the term of the line of credit arrangement. The Company adopted this ASU during the first quarter of 2016 and applied this standard retrospectively to 2015. The new guidance only impacted the presentation of the Company's financial position and did not affect the Company's results of operations or cash flows. Refer to Note 7 for the impact on our consolidated balance sheet at December 31, 2015. 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 January 2016, the FASB issued ASU 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in the ASU address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The FASB also is addressing measurement of credit losses on financial assets in a separate project. The ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The new guidance will be applied prospectively. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02 “Leases (Topic 842).” The ASU establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease term of more than twelve months. The ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the FASB issued ASU 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The ASU is effective for fiscal years beginning with the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Results by business segment | Results by business segment were as follows: Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 (In millions) Net sales: Supply Technologies $ 132.9 $ 150.2 $ 262.8 $ 301.6 Assembly Components 134.3 139.8 266.0 280.3 Engineered Products 62.2 87.3 128.6 170.1 $ 329.4 $ 377.3 $ 657.4 $ 752.0 Segment operating income: Supply Technologies $ 10.9 $ 13.0 $ 21.1 $ 27.2 Assembly Components 14.2 13.6 24.4 24.2 Engineered Products 3.2 5.2 4.6 11.4 Total segment operating income 28.3 31.8 50.1 62.8 Corporate costs (8.0 ) (6.2 ) (14.5 ) (12.9 ) Asset impairment — — (4.0 ) — Interest expense (7.0 ) (6.9 ) (14.1 ) (13.7 ) Income before income taxes $ 13.3 $ 18.7 $ 17.5 $ 36.2 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of inventory | The components of inventory consist of the following: June 30, 2016 December 31, 2015 (In millions) Finished goods $ 140.9 $ 147.5 Work in process 40.8 37.4 Raw materials and supplies 67.2 64.1 Inventories, net $ 248.9 $ 249.0 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 : 2016 2015 (In millions) Balance at January 1, $ 6.1 $ 6.9 Claims paid (1.0 ) (2.2 ) Warranty expense, net 0.8 1.4 Balance at June 30, $ 5.9 $ 6.1 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 June 30, 2016 December 31, 2015 (In millions) Senior Notes April 1, 2011 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility — July 31, 2019 2.69 % 155.6 169.0 Term loan — July 31, 2019 2.51 % 25.6 27.9 Other, including capital leases Various Various Various 26.0 21.2 Less current maturities (19.0 ) (17.8 ) Less unamortized debt issuance costs (1) (4.2 ) (4.5 ) Total long-term debt, net $ 434.0 $ 445.8 (1) Prior to the adoption of ASU 2015-03, debt issuance costs of $4.5 million were previously reflected in the December 31, 2015 consolidated balance sheet in other long-term assets. |
Fair value of debt | The following table represents fair value information of the Senior Notes, classified as Level 1 using estimated quoted market prices. June 30, 2016 December 31, 2015 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 251.3 $ 263.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock option activity | A summary of stock option activity as of June 30, 2016 and changes during the first six months of 2016 is presented below: 2016 Number of Shares Weighted Average Weighted Aggregate (In whole shares) (In millions) Outstanding - beginning of year 60,000 $ 19.41 Granted — — Exercised — — Canceled or expired — — Outstanding - end of period 60,000 $ 19.41 1.4 years $ 1.7 Options exercisable 60,000 $ 19.41 1.4 years $ 1.7 |
Summary of restricted share and performance share activity | A summary of restricted share activity for the six months ended June 30, 2016 is as follows: 2016 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 208,429 $ 36.61 120,000 $ 48.72 Granted 58,570 30.72 165,000 34.78 Vested (99,998 ) 40.16 (40,000 ) 48.72 Performance-based to time-based (a) 80,000 48.72 (80,000 ) 48.72 Canceled or expired (834 ) 34.53 — — Outstanding - end of period 246,167 $ 37.71 165,000 $ 34.78 (a) During the second quarter of 2016, 40,000 of the performance-based restricted shares granted in 2015 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 80,000 shares became time-based, vesting over the remaining two years of the requisite service period. |
Pension Plans and Other Postr27
Pension Plans and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit (income) costs recognized during interim periods were as follows: Pension Benefits Other Postretirement Benefits (OPEB) Three Months Ended June 30, Six Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, 2016 2015 2016 2015 2016 2015 2016 2015 (In millions) Service costs $ 0.6 $ 0.6 $ 1.2 $ 1.2 $ — $ — $ — $ — Interest costs 0.4 0.6 0.9 1.2 0.1 0.2 0.2 0.3 Expected return on plan assets (2.4 ) (2.5 ) (4.8 ) (5.0 ) — — — — Recognized net actuarial loss 0.3 — 0.6 — 0.1 0.1 0.2 0.3 Net periodic benefit (income) costs $ (1.1 ) $ (1.3 ) $ (2.1 ) $ (2.6 ) $ 0.2 $ 0.3 $ 0.4 $ 0.6 |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in accumulated comprehensive income (loss) | The components of and changes in accumulated other comprehensive loss for the three and six months ended June 30, 2016 and 2015 were as follows: Six Months Ended June 30, 2016 Cumulative Translation Adjustment Pension and OPEB Total (In millions) Beginning balance $ (16.9 ) $ (13.1 ) $ (30.0 ) Foreign currency translation adjustments (a) (3.9 ) — (3.9 ) Pension and OPEB activity, net of tax adjustments (b) — 0.4 0.4 Ending balance $ (20.8 ) $ (12.7 ) $ (33.5 ) Six Months Ended June 30, 2015 Cumulative Translation Adjustment Pension and OPEB Total (In millions) Beginning balance $ (5.1 ) $ (8.9 ) $ (14.0 ) Foreign currency translation adjustments (a) (2.6 ) — (2.6 ) Pension and OPEB activity, net of tax adjustments (b) — 0.3 0.3 Ending balance $ (7.7 ) $ (8.6 ) $ (16.3 ) (a) No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently re-invested. (b) The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. |
Weighted-Average Number of Sh29
Weighted-Average Number of Shares Used in Computing Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2016 2015 (In whole shares) Weighted average basic shares outstanding 12,112,575 12,230,100 12,094,695 12,198,169 Plus: Dilutive impact of employee stock awards 164,283 197,295 151,325 230,321 Weighted average diluted shares outstanding 12,276,858 12,427,395 12,246,020 12,428,490 |
Segments (Schedule of Segment I
Segments (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Net sales: | ||||
Net sales | $ 329.4 | $ 377.3 | $ 657.4 | $ 752 |
Segment operating income: | ||||
Total segment operating income | 20.3 | 25.6 | 31.6 | 49.9 |
Asset impairment | 0 | 0 | (4) | 0 |
Interest expense | (7) | (6.9) | (14.1) | (13.7) |
Income before income taxes | 13.3 | 18.7 | 17.5 | 36.2 |
Operating Segments | ||||
Net sales: | ||||
Net sales | 329.4 | 377.3 | 657.4 | 752 |
Segment operating income: | ||||
Total segment operating income | 28.3 | 31.8 | 50.1 | 62.8 |
Operating Segments | Supply Technologies | ||||
Net sales: | ||||
Net sales | 132.9 | 150.2 | 262.8 | 301.6 |
Segment operating income: | ||||
Total segment operating income | 10.9 | 13 | 21.1 | 27.2 |
Operating Segments | Assembly Components | ||||
Net sales: | ||||
Net sales | 134.3 | 139.8 | 266 | 280.3 |
Segment operating income: | ||||
Total segment operating income | 14.2 | 13.6 | 24.4 | 24.2 |
Operating Segments | Engineered Products | ||||
Net sales: | ||||
Net sales | 62.2 | 87.3 | 128.6 | 170.1 |
Segment operating income: | ||||
Total segment operating income | 3.2 | 5.2 | 4.6 | 11.4 |
Segment Reconciling Items | ||||
Segment operating income: | ||||
Corporate costs | (8) | (6.2) | (14.5) | (12.9) |
Interest expense | $ (7) | $ (6.9) | $ (14.1) | $ (13.7) |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Components of inventory | ||
Finished goods | $ 140.9 | $ 147.5 |
Work in process | 40.8 | 37.4 |
Raw materials and supplies | 67.2 | 64.1 |
Inventories, net | $ 248.9 | $ 249 |
Accrued Warranty Costs (Details
Accrued Warranty Costs (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Changes in product warranty liability [Roll Forward] | ||
Balance at beginning of period | $ 6.1 | $ 6.9 |
Claims paid | (1) | (2.2) |
Warranty expense, net | 0.8 | 1.4 |
Balance at end of period | $ 5.9 | $ 6.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Effective tax rate | 33.10% | 34.50% | |
Unrecognized tax benefits increase related to prior year tax positions | $ 0.1 | $ 0.1 | |
Decrease in unrecognized tax benefits is reasonable possible within the next twelve months | $ 3 | $ 3 |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Less current maturities | $ (19) | $ (17.8) |
Unamortized debt issuance costs | (4.2) | (4.5) |
Total long-term debt, net of current portion | $ 434 | 445.8 |
Revolving credit | ||
Debt Instrument [Line Items] | ||
Interest rate at end of period | 2.69% | |
Total debt | $ 155.6 | 169 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Interest rate at end of period | 2.51% | |
Total debt | $ 25.6 | 27.9 |
8.125% senior notes due 2021 | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.125% | |
Total debt | $ 250 | 250 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 26 | 21.2 |
Other Noncurrent Assets | Scenario, Previously Reported | ||
Debt Instrument [Line Items] | ||
Debt Issuance Costs, Net | $ 4.5 |
Financing Arrangements (Fair Va
Financing Arrangements (Fair Value of Debt) (Details) - Level 1 - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 250 | $ 250 |
Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 251.3 | $ 263.4 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) - USD ($) | Apr. 22, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Oct. 21, 2015 | Aug. 13, 2015 | Oct. 23, 2014 |
Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Capital lease obligations | $ 50,000,000 | |||||
Revolving credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Carrying amount | $ 155,600,000 | $ 169,000,000 | ||||
Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Carrying amount | 25,600,000 | $ 27,900,000 | ||||
The Amended Credit Agreement | Revolving credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Term of debt instrument | 7 years | |||||
Inventory advance rate percentage | 65.00% | 50.00% | ||||
The Amended Credit Agreement | LIBOR | Revolving credit | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 1.50% | |||||
The Amended Credit Agreement | LIBOR | Revolving credit | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 2.50% | |||||
The Amended Credit Agreement | LIBOR | Term Loan | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 2.00% | |||||
The Amended Credit Agreement | LIBOR | Term Loan | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 3.00% | |||||
The Amended Credit Agreement | Prime lending rate | Revolving credit | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | (0.25%) | |||||
The Amended Credit Agreement | Prime lending rate | Revolving credit | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | (1.25%) | |||||
The Amended Credit Agreement | Prime lending rate | Term Loan | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | (0.75%) | |||||
The Amended Credit Agreement | Prime lending rate | Term Loan | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 0.25% | |||||
The Amended Credit Agreement | Canadian deposit offered rate | Revolving Credit Facility, Canadian Sub-Limit | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 1.50% | |||||
The Amended Credit Agreement | Canadian deposit offered rate | Revolving Credit Facility, Canadian Sub-Limit | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 2.50% | |||||
The Amended Credit Agreement | Canadian prime lending rate | Revolving Credit Facility, Canadian Sub-Limit | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 0.00% | |||||
The Amended Credit Agreement | Canadian prime lending rate | Revolving Credit Facility, Canadian Sub-Limit | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 1.00% | |||||
The Amended Credit Agreement | US base rate | Revolving Credit Facility, Canadian Sub-Limit | Minimum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 0.00% | |||||
The Amended Credit Agreement | US base rate | Revolving Credit Facility, Canadian Sub-Limit | Maximum | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 1.00% | |||||
Amendment No. 1 to the Amended Credit Agreement | Revolving credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 300,000,000 | |||||
Amount drawn | $ 35,000,000 | |||||
Inventory advance rate percentage to be reduced to | 50.00% | |||||
Term over which inventory advance rate percentage reduces | 36 months | |||||
Term over which basis spread on variable interest rate reduces | 36 months | |||||
Amendment No. 1 to the Amended Credit Agreement | Revolving Credit Facility, Canadian Sub-Limit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 35,000,000 | |||||
Amendment No. 1 to the Amended Credit Agreement | Revolving Credit Facility, European Sub-Limit | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | 25,000,000 | |||||
Amendment No. 1 to the Amended Credit Agreement | Term Loan | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 35,000,000 | |||||
Amendment No. 1 to the Amended Credit Agreement | LIBOR | Revolving credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Basis spread on variable interest rate - plus (minus) | 3.50% | |||||
Southwest Steel Processing LLC | Arkansas Development Finance Authority | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 11,000,000 | |||||
Amount drawn | 5,600,000 | |||||
Machinery and Equipment | ||||||
Line of Credit Facility [Line Items] | ||||||
Capital lease obligations | $ 17,400,000 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Stock Option Activity) (Details) $ / shares in Units, $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($)$ / sharesshares | |
Number of Shares [Roll Forward] | |
Outstanding - beginning of year, number of shares | shares | 60,000 |
Granted, number of shares | shares | 0 |
Exercised, number of shares | shares | 0 |
Canceled or expired, number of shares | shares | 0 |
Outstanding - end of year, number of shares | shares | 60,000 |
Options exercisable, number of shares | shares | 60,000 |
Weighted Average Exercise Price [Abstract] | |
Outstanding - beginning of year, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 19.41 |
Granted, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 |
Exercised, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 |
Canceled or Expired, Weighted Average Exercise Price (in dollars per share) | $ / shares | 0 |
Outstanding - end of year, Weighted Average Exercise Price (in dollars per share) | $ / shares | 19.41 |
Options Exercisable - end of year, Weighted Average Exercise Price (in dollars per share) | $ / shares | $ 19.41 |
Outstanding - end of year, weighted average remaining contractual term | 1 year 5 months |
Options Exercisable, Weighted Average remaining contractual term | 1 year 5 months |
Outstanding - end of year, Aggregate intrinsic value | $ | $ 1.7 |
Options Exercisable, Aggregate intrinsic value | $ | $ 1.7 |
Stock-Based Compensation (Sum38
Stock-Based Compensation (Summary of Restricted Share and Performance Share Activity) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2016 | |
Number of Shares [Roll Forward] | |||
Granted, number of shares | 1,500 | ||
Vested, number of shares | (1,500) | ||
Time-Based | Restricted Stock | |||
Number of Shares [Roll Forward] | |||
Outstanding - beginning of year, number of shares | 208,429 | 208,429 | |
Granted, number of shares | 58,570 | ||
Vested, number of shares | (99,998) | ||
Performance-based to time-based, number of shares | 80,000 | ||
Canceled or expired, number of shares | (834) | ||
Outstanding - end of year, number of shares | 246,167 | 246,167 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $ 36.61 | $ 36.61 | |
Granted, weighted average grant date fair value (in dollars per share) | 30.72 | ||
Vested, weighted average grant date fair value (in dollars per share) | 40.16 | ||
Converted, weighted average grant date fair value (in dollars per share) | 48.72 | ||
Canceled or expired, weighted average grant date fair value (in dollars per share) | 34.53 | ||
Outstanding - end of year, weighted average grant date fair value (in dollars per share) | $ 37.71 | $ 37.71 | |
Vesting period | 2 years | ||
Performance-Based | Restricted Stock | |||
Number of Shares [Roll Forward] | |||
Outstanding - beginning of year, number of shares | 120,000 | 120,000 | |
Granted, number of shares | 165,000 | ||
Vested, number of shares | (40,000) | (40,000) | |
Performance-based to time-based, number of shares | 80,000 | (80,000) | |
Canceled or expired, number of shares | 0 | ||
Outstanding - end of year, number of shares | 165,000 | 165,000 | |
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $ 48.72 | $ 48.72 | |
Granted, weighted average grant date fair value (in dollars per share) | 34.78 | ||
Vested, weighted average grant date fair value (in dollars per share) | 48.72 | ||
Converted, weighted average grant date fair value (in dollars per share) | 48.72 | ||
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) | $ 34.78 | $ 34.78 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Number of shares granted | 1,500 | ||
Number of shares vested | 1,500 | ||
Stock-based compensation expense | $ 5.5 | $ 2.9 | |
Unrecognized compensation cost related to non-vested stock-based compensation | $ 12.6 | ||
Weighted average period | 1 year 7 months |
Commitments, Contingencies an40
Commitments, Contingencies and Litigation Judgment (Details) - TMK IPSCO - USD ($) $ in Millions | 1 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2013 | May 31, 2013 | |
Loss Contingencies [Line Items] | |||
Direct damages sought | $ 10 | ||
Damages awarded | $ 2.2 | $ 5.2 | |
Additional damages sought | $ 3.8 |
Pension Plans and Other Postr41
Pension Plans and Other Postretirement Benefits (Components of net periodic benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Pension Benefits | ||||
Components of net periodic benefit cost | ||||
Service costs | $ 0.6 | $ 0.6 | $ 1.2 | $ 1.2 |
Interest costs | 0.4 | 0.6 | 0.9 | 1.2 |
Expected return on plan assets | (2.4) | (2.5) | (4.8) | (5) |
Recognized net actuarial loss | 0.3 | 0 | 0.6 | 0 |
Net periodic benefit (income) costs | (1.1) | (1.3) | (2.1) | (2.6) |
Other Postretirement Benefits (OPEB) | ||||
Components of net periodic benefit cost | ||||
Service costs | 0 | 0 | 0 | 0 |
Interest costs | 0.1 | 0.2 | 0.2 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 0.1 | 0.1 | 0.2 | 0.3 |
Net periodic benefit (income) costs | $ 0.2 | $ 0.3 | $ 0.4 | $ 0.6 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Components of accumulated comprehensive loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ 212.2 | |||
Other comprehensive income (loss) | $ (6.3) | $ 2.8 | (3.5) | $ (2.3) |
Ending balance | 221.2 | 221.2 | ||
Cumulative Translation Adjustment | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (16.9) | (5.1) | ||
Other comprehensive income (loss) | (3.9) | (2.6) | ||
Ending balance | (20.8) | (7.7) | (20.8) | (7.7) |
Pension and OPEB | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (13.1) | (8.9) | ||
Other comprehensive income (loss) | 0.4 | 0.3 | ||
Ending balance | (12.7) | (8.6) | (12.7) | (8.6) |
Total | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (30) | (14) | ||
Ending balance | $ (33.5) | $ (16.3) | $ (33.5) | $ (16.3) |
Weighted-Average Number of Sh43
Weighted-Average Number of Shares Used in Computing Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Weighted average basic shares outstanding | 12,112,575 | 12,230,100 | 12,094,695 | 12,198,169 |
Plus: Dilutive impact of employee stock awards | 164,283 | 197,295 | 151,325 | 230,321 |
Weighted average diluted shares outstanding | 12,276,858 | 12,427,395 | 12,246,020 | 12,428,490 |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive shares | 0 | 0 | 0 | 0 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | ||||
Net book value of long-lived assets | $ 5.2 | $ 5.2 | ||
Asset impairment | $ 0 | $ 0 | $ 4 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 29, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsequent Event [Line Items] | |||||
Quarterly dividend declared, per common share (in dollars per share) | $ 0.125 | $ 0.125 | $ 0.250 | $ 0.250 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Quarterly dividend declared, per common share (in dollars per share) | $ 0.125 | ||||
Quarterly dividend declared, cash outlay | $ 1.5 |