Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
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 | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 12,558,195 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 67.5 | $ 64.3 |
Accounts receivable, net | 225.9 | 194.4 |
Inventories, net | 248.6 | 240.6 |
Other current assets | 56.1 | 53.4 |
Total current assets | 598.1 | 552.7 |
Property, plant and equipment, net | 168.8 | 167.1 |
Goodwill | 87.1 | 86.6 |
Intangible assets, net | 95.1 | 96.6 |
Other long-term assets | 73.6 | 71.3 |
Total assets | 1,022.7 | 974.3 |
Current liabilities: | ||
Trade accounts payable | 154.5 | 133.6 |
Current portion of long-term debt and short-term debt | 29.7 | 30.8 |
Accrued expenses and other | 86 | 77.5 |
Total current liabilities | 270.2 | 241.9 |
Long-term liabilities, less current portion: | ||
Debt | 452 | 439 |
Deferred income taxes | 28 | 27.7 |
Other long-term liabilities | 22.3 | 29.7 |
Total long-term liabilities | 502.3 | 496.4 |
Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 239.9 | 226 |
Noncontrolling interests | 10.3 | 10 |
Total equity | 250.2 | 236 |
Total liabilities and shareholders' equity | $ 1,022.7 | $ 974.3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 343.8 | $ 328 |
Cost of sales | 288.3 | 280.2 |
Gross profit | 55.5 | 47.8 |
Selling, general and administrative expenses | 36.6 | 32.5 |
Litigation settlement gain | (3.3) | 0 |
Asset impairment charge | 0 | 4 |
Operating income | 22.2 | 11.3 |
Interest expense | 7.4 | 7.1 |
Income before income taxes | 14.8 | 4.2 |
Income tax expense | 4.7 | 1.5 |
Net income | 10.1 | 2.7 |
Net income attributable to noncontrolling interests | (0.3) | 0 |
Net income attributable to ParkOhio common shareholders | $ 9.8 | $ 2.7 |
Earnings per common share attributable to ParkOhio common shareholders: | ||
Basic (in dollars per share) | $ 0.80 | $ 0.22 |
Diluted (in dollars per share) | $ 0.79 | $ 0.22 |
Weighted-average shares used to compute earnings per share: | ||
Basic (in shares) | 12,203,505 | 12,076,815 |
Diluted (in shares) | 12,482,379 | 12,216,592 |
Dividends per common share (in dollars per share) | $ 0.125 | $ 0.125 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 10.1 | $ 2.7 |
Other comprehensive income: | ||
Foreign currency translation adjustment | 3.9 | 2.6 |
Pension and other postretirement benefit adjustments, net of tax | 0.2 | 0.2 |
Total other comprehensive income | 4.1 | 2.8 |
Total comprehensive income, net of tax | 14.2 | 5.5 |
Comprehensive income attributable to noncontrolling interests | (0.3) | 0 |
Comprehensive income attributable to ParkOhio common shareholders | $ 13.9 | $ 5.5 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net income | $ 10.1 | $ 2.7 |
Adjustments to reconcile net income to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 7.8 | 7.4 |
Litigation settlement gain | (3.3) | 0 |
Asset impairment charge | 0 | 4 |
Share-based compensation expense | 2.2 | 2.5 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (30) | (11.6) |
Inventories | (6.5) | (3.5) |
Other current assets | (2.3) | (2.6) |
Accounts payable and accrued expenses | 27.1 | 16.9 |
Litigation settlement payment | (4) | 0 |
Other | (1.3) | (5.7) |
Net cash provided by operating activities | (0.2) | 10.1 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (6.1) | (8.9) |
Net cash used by investing activities | (6.1) | (8.9) |
FINANCING ACTIVITIES | ||
Proceeds from (payments on) revolving credit facility, net | 13 | (4.5) |
Payments on term loans and other debt | (3) | (1.1) |
Proceeds from term loans and other debt | 0 | 4.7 |
Proceeds from (payments on) capital lease facilities, net | 1.1 | (0.7) |
Dividends | (1.6) | (1.5) |
Payments of withholding taxes on share awards | (0.7) | (0.4) |
Other | 0 | (0.1) |
Net cash provided (used) by financing activities | 8.8 | (3.6) |
Effect of exchange rate changes on cash | 0.7 | 0.8 |
Increase (decrease) in cash and cash equivalents | 3.2 | (1.6) |
Cash and cash equivalents at beginning of period | 64.3 | 62 |
Cash and cash equivalents at end of period | 67.5 | 60.4 |
Income taxes paid | 1.9 | 0.8 |
Interest paid | $ 1.9 | $ 1.5 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
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. 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 -month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The balance sheet at December 31, 2016 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, 2016 . 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, 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 | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company adopted this ASU effective January 1, 2017. ASU 2016-09 requires prospective recognition of excess tax benefits and deficiencies resulting from share-based compensation awards vesting and exercises be recognized as a discrete income tax adjustment in the income statement. Previously, these amounts were recognized in Additional paid-in capital. In the three months ended March 31, 2017, an immaterial amount of net excess tax benefits was recognized as a reduction in income tax expense. In addition, ASU 2016-09 requires excess tax benefits and shortfalls to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, resulting in an insignificant increase in diluted weighted average shares outstanding for the three months ended March 31, 2017 and an immaterial impact on earnings per share. ASU 2016-09 also requires that excess tax benefits from share-based compensation awards be reported as operating activities in the Condensed Consolidated Statements of Cash Flows. Previously, this activity was included in financing activities on the Condensed Consolidated Statements of Cash Flows. The Company has elected to apply this change on a prospective basis. This change has an immaterial impact on our Condensed Consolidated Statements of Cash Flows. Also, we elected to continue to estimate forfeitures rather than account for them as they occur. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment." The amendments in the ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted this guidance for any impairment test performed after January 1, 2017. 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 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 modified retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is in the process of analyzing the impact of ASU 2014-09, and the related ASUs, across all its businesses. This includes reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements under the new standard. The Company expects to adopt the new standard using the modified retrospective approach, under which the cumulative effect of initially applying the new guidance is recognized as an adjustment to the opening balance of retained earnings upon adoption effective January 1, 2018. We are still evaluating the impact and an estimation of the impact cannot be made at this time. In addition, the standard requires new substantial disclosures and we continue to evaluate these requirements. 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 2017, the FASB issued ASU 2017-07 “Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The Company is planning to adopt this standard in the first quarter of 2018. 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 | 3 Months Ended |
Mar. 31, 2017 | |
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 and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs, certain non-cash items and interest expense. Results by business segment were as follows: Three Months Ended March 31, 2017 2016 (In millions) Net sales: Supply Technologies $ 133.2 $ 129.9 Assembly Components 139.3 131.7 Engineered Products 71.3 66.4 $ 343.8 $ 328.0 Segment operating income: Supply Technologies $ 11.3 $ 10.2 Assembly Components 12.5 10.2 Engineered Products 1.7 1.4 Total segment operating income 25.5 21.8 Corporate costs (6.6 ) (6.5 ) Litigation settlement gain 3.3 — Asset impairment charge — (4.0 ) Operating income 22.2 11.3 Interest expense (7.4 ) (7.1 ) Income before income taxes $ 14.8 $ 4.2 |
Acquisition
Acquisition | 3 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition In December 2016, the Company acquired all the outstanding capital stock of GH Electrotermia S.A. (“GH”), headquartered in Valencia, Spain, for $23.4 million in cash (net of $6.3 million cash acquired), plus the assumption of $13.9 million in debt. The allocation of the purchase price, which is materially unchanged from December 31, 2016, is subject to finalization of the Company's determination of the fair value of assets acquired and liabilities assumed as of the acquisition date. The Company has not yet finalized its analysis of the fair value of property, plant and equipment; intangible assets; noncontrolling interests; deferred taxes and certain other assets and liabilities. The final allocation is expected to be completed as soon as practicable but no later than twelve months after the acquisition date. In addition, the purchase agreement stipulates potential contingent consideration of up to $2.1 million based on achievement of certain EBITDA targets for 2016 and 2017. The estimated fair value of the contingent consideration, valued using level 3 inputs, was approximately $1.1 million as of March 31, 2017 and December 31, 2016. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventory consist of the following: March 31, 2017 December 31, 2016 (In millions) Finished goods $ 134.7 $ 131.4 Work in process 45.6 43.4 Raw materials and supplies 68.3 65.8 Inventories, net $ 248.6 $ 240.6 |
Accrued Warranty Costs
Accrued Warranty Costs | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Accrued Warranty Costs | Accrued Warranty Costs The Company estimates warranty claims on products sold that may be incurred based on current and historical data. Actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2017 and 2016 : 2017 2016 (In millions) January 1 $ 7.1 $ 6.1 Claims paid (1.0 ) (0.6 ) Warranty expense, net 1.0 0.7 March 31 $ 7.1 $ 6.2 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
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 rates for the first three months of 2017 and 2016 were 31.8% and 35.7% , respectively. The Company recognizes accrued interest and penalties related to uncertain tax positions in income tax expense. It is reasonably possible that, within the next twelve months, the amount of gross unrecognized tax benefits could be reduced by approximately $1.4 million as a result of the closure of tax statutes related to existing uncertain tax positions. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Long-term debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2017 March 31, 2017 December 31, 2016 (In millions) Senior Notes due 2021 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility July 31, 2019 4.10 % 145.8 132.8 Term Loan July 31, 2019 3.00 % 22.3 23.4 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 26.7 26.4 Capital Leases Various Various 19.9 18.8 Other Various Various 22.0 23.6 Gross debt 486.7 475.0 Less current portion of long-term debt (25.3 ) (25.8 ) Less short-term debt (4.4 ) (5.0 ) Less unamortized debt issuance costs (5.0 ) (5.2 ) Total long-term debt, net $ 452.0 $ 439.0 See Note 15 - Subsequent Events for a discussion of the Company's refinancing of its Senior Notes (as defined below) and Amended Credit Agreement (as described below), and the repayment of its term loan on April 17, 2017. On December 21, 2016, the Company, through its subsidiary, IEGE Industrial Equipment Holding Company Limited, entered into a financing agreement with Banco Bolbao Vizcaya Argentaria, S.A. The financing agreement provides the Company the ability to borrow up to $36.9 million , including a loan for $26.4 million for the acquisition of GH as well as a revolving credit facility for up to $10.5 million to fund working capital and general corporate needs. The full amount of the loan is outstanding as of March 31, 2017; no amounts have been drawn on the $10.5 million revolving credit facility as of March 31, 2017. 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 $22.3 million has been borrowed and is outstanding as of March 31, 2017 ; • 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 financing agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The financing agreement matures in September 2025. The Company had $6.1 million of borrowings outstanding under this agreement as of March 31, 2017 . 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 $19.9 million were borrowed under the Lease Agreement to acquire machinery and equipment as of March 31, 2017 . The term loan is amortized based on a seven -year schedule with the balance due at maturity (July 31, 2019). 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 Company's 8.125% Senior Notes due 2021 (the “Senior Notes”), classified as Level 1 using estimated quoted market prices. March 31, 2017 December 31, 2016 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 258.0 $ 257.5 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation There was no stock option activity for the three months ended March 31, 2017 . A summary of restricted share activity for the three months ended March 31, 2017 is as follows: 2017 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 216,916 $ 36.94 165,000 $ 34.78 Granted 15,500 42.60 — — Vested (9,499 ) 35.13 (55,000 ) 34.78 Performance-based to time-based (a) 110,000 34.78 (110,000 ) 34.78 Canceled or expired (2,000 ) 37.87 — — Outstanding - end of period 330,917 $ 36.53 — $ — (a) During the first quarter of 2017, 55,000 of the performance-based restricted shares granted in 2016 fully vested based on the achievement of the performance criteria. In accordance with the grant agreements, the remaining 110,000 shares became time-based, vesting over the remaining two years of the requisite service period. Total stock-based compensation expense included in selling, general and administrative expenses during the first three months of 2017 and 2016 was $2.2 million and $2.5 million , respectively. As of March 31, 2017 , there was $6.0 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 1.5 years. |
Commitments, Contingencies and
Commitments, Contingencies and Litigation Settlement | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Litigation Settlement | Commitments, Contingencies and Litigation Settlement 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. 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. 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 filed a third appeal of that decision. On March 28, 2017, the Company and IPSCO agreed to a settlement and release of all claims for the payment by the Company of $4.0 million to IPSCO, which was made in March 2017. As of the settlement date, the Company had $7.3 million accrued for this matter. The Company reversed the excess liability and recognized $3.3 million in income in the first quarter of 2017. 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 and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The components of net periodic benefit (income) costs recognized during interim periods were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2017 2016 2017 2016 (In millions) Service costs $ 0.6 $ 0.6 $ — $ — Interest costs 0.5 0.5 0.1 0.1 Expected return on plan assets (2.4 ) (2.4 ) — — Recognized net actuarial loss 0.3 0.3 — 0.1 Net periodic benefit (income) costs $ (1.0 ) $ (1.0 ) $ 0.1 $ 0.2 Weighted average: Discount rate 3.91 % 4.13 % 3.63 % 3.80 % Expected return on plan assets 8.25 % 8.25 % |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2017 and 2016 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) January 1, 2017 $ (30.8 ) $ (11.9 ) $ (42.7 ) Foreign currency translation adjustments (a) 3.9 — 3.9 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2017 $ (26.9 ) $ (11.7 ) $ (38.6 ) January 1, 2016 $ (16.9 ) $ (13.1 ) $ (30.0 ) Foreign currency translation adjustments (a) 2.6 — 2.6 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2016 $ (14.3 ) $ (12.9 ) $ (27.2 ) (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 | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 (In whole shares) Weighted average basic shares outstanding 12,203,505 12,076,815 Plus: Dilutive impact of employee stock awards 278,874 139,777 Weighted average diluted shares outstanding 12,482,379 12,216,592 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 -months ended March 31, 2017 and 2016. |
Asset Impairment
Asset Impairment | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Asset Impairment | Asset Impairment In the first quarter of 2016, due to the accelerated end of production in certain programs with an automotive customer, the Company evaluated its long-lived assets in accordance with ASU 360, "Property, Plant and Equipment." 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 its analysis, the Company recorded an asset impairment charge of $ 4.0 million . |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 17, 2017, Park-Ohio Industries, Inc. (“Park-Ohio”) the operating subsidiary of Park-Ohio Holdings Corp., completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes will be payable semi-annually in arrears on April 15 and October 15 of each year, commencing on October 15, 2017, and the Notes mature on April 15, 2027. The Notes are unsecured senior obligations of Park-Ohio and are guaranteed on an unsecured senior basis by the material domestic subsidiaries of Park-Ohio. The net proceeds from the issuance were used to repay in full the Senior Notes and the Company’s term loan under the Amended Credit Agreement, and to repay a portion of the borrowings outstanding under the Company’s revolving credit facility under the Amended Credit Agreement. On April 17, 2017, the Company also entered into a seventh amended and restated credit agreement (the “Further Amended Credit Agreement”) with a group of banks. The Further Amended Credit Agreement, among other things, provides an increased revolving credit facility of up to $350.0 million , extends the maturity date of borrowings under the facility to April 17, 2022. Furthermore, the Company has the option, pursuant to the Further Amended Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million . On May 1, 2017, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend will be paid on May 30, 2017 to shareholders of record as of the close of business on May 15, 2017 and will result in a cash outlay of approximately $1.6 million . |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
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. 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 -month period ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The balance sheet at December 31, 2016 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, 2016 . |
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, 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. |
Accounting Pronouncements Adopted and Not Yet Adopted | Accounting Pronouncements Adopted In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 Company adopted this ASU effective January 1, 2017. ASU 2016-09 requires prospective recognition of excess tax benefits and deficiencies resulting from share-based compensation awards vesting and exercises be recognized as a discrete income tax adjustment in the income statement. Previously, these amounts were recognized in Additional paid-in capital. In the three months ended March 31, 2017, an immaterial amount of net excess tax benefits was recognized as a reduction in income tax expense. In addition, ASU 2016-09 requires excess tax benefits and shortfalls to be prospectively excluded from the assumed future proceeds in the calculation of diluted shares, resulting in an insignificant increase in diluted weighted average shares outstanding for the three months ended March 31, 2017 and an immaterial impact on earnings per share. ASU 2016-09 also requires that excess tax benefits from share-based compensation awards be reported as operating activities in the Condensed Consolidated Statements of Cash Flows. Previously, this activity was included in financing activities on the Condensed Consolidated Statements of Cash Flows. The Company has elected to apply this change on a prospective basis. This change has an immaterial impact on our Condensed Consolidated Statements of Cash Flows. Also, we elected to continue to estimate forfeitures rather than account for them as they occur. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill impairment." The amendments in the ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. The ASU is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company early adopted this guidance for any impairment test performed after January 1, 2017. 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 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 modified retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is in the process of analyzing the impact of ASU 2014-09, and the related ASUs, across all its businesses. This includes reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements under the new standard. The Company expects to adopt the new standard using the modified retrospective approach, under which the cumulative effect of initially applying the new guidance is recognized as an adjustment to the opening balance of retained earnings upon adoption effective January 1, 2018. We are still evaluating the impact and an estimation of the impact cannot be made at this time. In addition, the standard requires new substantial disclosures and we continue to evaluate these requirements. 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 2017, the FASB issued ASU 2017-07 “Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The ASU requires that an employer report the service cost component in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The Company is planning to adopt this standard in the first quarter of 2018. 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 | 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 and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs, certain non-cash items and interest expense. |
Accrued Warranty Costs | The Company estimates warranty claims on products sold that may be incurred based on current and historical data. Actual warranty expense could differ from the estimates made by the Company based on product performance. |
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. |
Commitments and Contingencies | 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. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Results by business segment | Results by business segment were as follows: Three Months Ended March 31, 2017 2016 (In millions) Net sales: Supply Technologies $ 133.2 $ 129.9 Assembly Components 139.3 131.7 Engineered Products 71.3 66.4 $ 343.8 $ 328.0 Segment operating income: Supply Technologies $ 11.3 $ 10.2 Assembly Components 12.5 10.2 Engineered Products 1.7 1.4 Total segment operating income 25.5 21.8 Corporate costs (6.6 ) (6.5 ) Litigation settlement gain 3.3 — Asset impairment charge — (4.0 ) Operating income 22.2 11.3 Interest expense (7.4 ) (7.1 ) Income before income taxes $ 14.8 $ 4.2 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Components of inventory | The components of inventory consist of the following: March 31, 2017 December 31, 2016 (In millions) Finished goods $ 134.7 $ 131.4 Work in process 45.6 43.4 Raw materials and supplies 68.3 65.8 Inventories, net $ 248.6 $ 240.6 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in product warranty liability | The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2017 and 2016 : 2017 2016 (In millions) January 1 $ 7.1 $ 6.1 Claims paid (1.0 ) (0.6 ) Warranty expense, net 1.0 0.7 March 31 $ 7.1 $ 6.2 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2017 March 31, 2017 December 31, 2016 (In millions) Senior Notes due 2021 April 1, 2021 8.125 % $ 250.0 $ 250.0 Revolving credit facility July 31, 2019 4.10 % 145.8 132.8 Term Loan July 31, 2019 3.00 % 22.3 23.4 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 26.7 26.4 Capital Leases Various Various 19.9 18.8 Other Various Various 22.0 23.6 Gross debt 486.7 475.0 Less current portion of long-term debt (25.3 ) (25.8 ) Less short-term debt (4.4 ) (5.0 ) Less unamortized debt issuance costs (5.0 ) (5.2 ) Total long-term debt, net $ 452.0 $ 439.0 |
Fair value of debt | The following table represents fair value information of the Company's 8.125% Senior Notes due 2021 (the “Senior Notes”), classified as Level 1 using estimated quoted market prices. March 31, 2017 December 31, 2016 (In millions) Carrying amount $ 250.0 $ 250.0 Fair value $ 258.0 $ 257.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of restricted share and performance share activity | A summary of restricted share activity for the three months ended March 31, 2017 is as follows: 2017 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 216,916 $ 36.94 165,000 $ 34.78 Granted 15,500 42.60 — — Vested (9,499 ) 35.13 (55,000 ) 34.78 Performance-based to time-based (a) 110,000 34.78 (110,000 ) 34.78 Canceled or expired (2,000 ) 37.87 — — Outstanding - end of period 330,917 $ 36.53 — $ — (a) During the first quarter of 2017, 55,000 of the performance-based restricted shares granted in 2016 fully vested based on the achievement of the performance criteria. In accordance with the grant agreements, the remaining 110,000 shares became time-based, vesting over the remaining two years of the requisite service period. |
Pension and Postretirement Be27
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2017 2016 2017 2016 (In millions) Service costs $ 0.6 $ 0.6 $ — $ — Interest costs 0.5 0.5 0.1 0.1 Expected return on plan assets (2.4 ) (2.4 ) — — Recognized net actuarial loss 0.3 0.3 — 0.1 Net periodic benefit (income) costs $ (1.0 ) $ (1.0 ) $ 0.1 $ 0.2 Weighted average: Discount rate 3.91 % 4.13 % 3.63 % 3.80 % Expected return on plan assets 8.25 % 8.25 % |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Changes in accumulated comprehensive loss | The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2017 and 2016 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) January 1, 2017 $ (30.8 ) $ (11.9 ) $ (42.7 ) Foreign currency translation adjustments (a) 3.9 — 3.9 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2017 $ (26.9 ) $ (11.7 ) $ (38.6 ) January 1, 2016 $ (16.9 ) $ (13.1 ) $ (30.0 ) Foreign currency translation adjustments (a) 2.6 — 2.6 Pension and OPEB activity, net of tax adjustments (b) — 0.2 0.2 March 31, 2016 $ (14.3 ) $ (12.9 ) $ (27.2 ) (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) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 2016 (In whole shares) Weighted average basic shares outstanding 12,203,505 12,076,815 Plus: Dilutive impact of employee stock awards 278,874 139,777 Weighted average diluted shares outstanding 12,482,379 12,216,592 |
Segments (Schedule of Segment I
Segments (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Net sales: | ||
Net sales | $ 343.8 | $ 328 |
Segment operating income: | ||
Total segment operating income | 22.2 | 11.3 |
Litigation settlement gain | 3.3 | 0 |
Asset impairment charge | 0 | (4) |
Interest expense | (7.4) | (7.1) |
Income before income taxes | 14.8 | 4.2 |
Operating Segments | ||
Segment operating income: | ||
Total segment operating income | 25.5 | 21.8 |
Operating Segments | Supply Technologies | ||
Net sales: | ||
Net sales | 133.2 | 129.9 |
Segment operating income: | ||
Total segment operating income | 11.3 | 10.2 |
Operating Segments | Assembly Components | ||
Net sales: | ||
Net sales | 139.3 | 131.7 |
Segment operating income: | ||
Total segment operating income | 12.5 | 10.2 |
Operating Segments | Engineered Products | ||
Net sales: | ||
Net sales | 71.3 | 66.4 |
Segment operating income: | ||
Total segment operating income | 1.7 | 1.4 |
Segment Reconciling Items | ||
Segment operating income: | ||
Corporate costs | (6.6) | (6.5) |
Litigation settlement gain | 3.3 | 0 |
Interest expense | $ (7.4) | $ (7.1) |
Acquisition Narrative (Details)
Acquisition Narrative (Details) - GH Electrotermia S.A. - USD ($) $ in Millions | 1 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2017 | |
Business Acquisition [Line Items] | ||
Business acquisition, cash paid | $ 23.4 | |
Cash acquired | 6.3 | |
Debt assumed in acquisition | 13.9 | |
Contingent consideration, fair value of earn-out | 2.1 | |
Estimated fair value of the earn-out | $ 1.1 | $ 1.1 |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Components of inventory | ||
Finished goods | $ 134.7 | $ 131.4 |
Work in process | 45.6 | 43.4 |
Raw materials and supplies | 68.3 | 65.8 |
Inventories, net | $ 248.6 | $ 240.6 |
Accrued Warranty Costs (Details
Accrued Warranty Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in product warranty liability [Roll Forward] | ||
Balance at beginning of period | $ 7.1 | $ 6.1 |
Claims paid | (1) | (0.6) |
Warranty expense, net | 1 | 0.7 |
Balance at end of period | $ 7.1 | $ 6.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 31.80% | 35.70% |
Decrease in unrecognized tax benefits is reasonable possible within the next twelve months | $ 1.4 |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt | $ 486.7 | $ 475 |
Less current portion of long-term debt | (25.3) | (25.8) |
Short-term debt | (4.4) | (5) |
Unamortized debt issuance costs | (5) | (5.2) |
Total long-term debt, net | $ 452 | 439 |
Revolving credit | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 4.098% | |
Total debt | $ 145.8 | 132.8 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.00% | |
Total debt | $ 22.3 | 23.4 |
Foreign Line of Credit | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.25% | |
Total debt | $ 26.7 | 26.4 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 8.125% | |
Total debt | $ 250 | 250 |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Total debt | 19.9 | 18.8 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 22 | $ 23.6 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) - USD ($) | Apr. 22, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 21, 2016 | Oct. 21, 2015 | Aug. 13, 2015 | Oct. 23, 2014 |
Line of Credit Facility [Line Items] | |||||||
Carrying amount | $ 486,700,000 | $ 475,000,000 | |||||
Machinery and Equipment | |||||||
Line of Credit Facility [Line Items] | |||||||
Capital lease obligations | 19,900,000 | ||||||
Southwest Steel Processing LLC | Arkansas Development Finance Authority | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 11,000,000 | ||||||
Amount drawn | 6,100,000 | ||||||
Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Capital lease obligations | $ 50,000,000 | ||||||
Foreign Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying amount | $ 26,700,000 | 26,400,000 | |||||
Stated interest rate | 3.25% | ||||||
Revolving credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying amount | $ 145,800,000 | 132,800,000 | |||||
Stated interest rate | 4.098% | ||||||
Term Loan | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying amount | $ 22,300,000 | 23,400,000 | |||||
Stated interest rate | 3.00% | ||||||
Amendment No. 1 to the Amended Credit Agreement | Revolving credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Inventory advance rate percentage to be reduced to | 50.00% | ||||||
Term over which inventory advance rate percentage reduces | 36 months | ||||||
Amount drawn | $ 35,000,000 | ||||||
Term over which basis spread on variable interest rate reduces | 36 months | ||||||
Amendment No. 1 to the Amended Credit Agreement | Revolving credit | LIBOR | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (3.50%) | ||||||
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 | ||||||
The Amended Credit Agreement | Revolving credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Inventory advance rate percentage | 65.00% | 50.00% | |||||
Term of debt instrument | 7 years | ||||||
The Amended Credit Agreement | Revolving credit | LIBOR | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (1.50%) | ||||||
The Amended Credit Agreement | Revolving credit | LIBOR | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (2.50%) | ||||||
The Amended Credit Agreement | Revolving credit | Prime lending rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | 0.25% | ||||||
The Amended Credit Agreement | Revolving credit | Prime lending rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | 1.25% | ||||||
The Amended Credit Agreement | Revolving Credit Facility, Canadian Sub-Limit | Canadian deposit offered rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (1.50%) | ||||||
The Amended Credit Agreement | Revolving Credit Facility, Canadian Sub-Limit | Canadian deposit offered rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (2.50%) | ||||||
The Amended Credit Agreement | Revolving Credit Facility, Canadian Sub-Limit | Canadian prime lending rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | 0.00% | ||||||
The Amended Credit Agreement | Revolving Credit Facility, Canadian Sub-Limit | Canadian prime lending rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (1.00%) | ||||||
The Amended Credit Agreement | Revolving Credit Facility, Canadian Sub-Limit | US base rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | 0.00% | ||||||
The Amended Credit Agreement | Revolving Credit Facility, Canadian Sub-Limit | US base rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (1.00%) | ||||||
The Amended Credit Agreement | Term Loan | LIBOR | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (2.00%) | ||||||
The Amended Credit Agreement | Term Loan | LIBOR | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (3.00%) | ||||||
The Amended Credit Agreement | Term Loan | Prime lending rate | Minimum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | 0.75% | ||||||
The Amended Credit Agreement | Term Loan | Prime lending rate | Maximum | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable interest rate - plus (minus) | (0.25%) | ||||||
Line of Credit | Banco Bolbao Vizcaya Argentaria, S.A. | Foreign Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 36,900,000 | ||||||
Line of Credit | Banco Bolbao Vizcaya Argentaria, S.A. | Financing Agreement | Revolving credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | 10,500,000 | ||||||
Amount drawn | 0 | ||||||
Senior Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Carrying amount | $ 250,000,000 | $ 250,000,000 | |||||
Stated interest rate | 8.125% | ||||||
GH Electrotermia S.A. | Line of Credit | Banco Bolbao Vizcaya Argentaria, S.A. | Financing Agreement | Foreign Line of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Amount drawn | $ 26,400,000 |
Financing Arrangements (Fair Va
Financing Arrangements (Fair Value of Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 486.7 | $ 475 |
Level 1 | Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | 250 | 250 |
Level 1 | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 258 | $ 257.5 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Share and Performance Share Activity) (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Time-Based | |
Number of Shares [Roll Forward] | |
Outstanding - beginning of year, number of shares (in shares) | shares | 216,916 |
Granted, number of shares (in shares) | shares | 15,500 |
Vested, number of shares (in shares) | shares | (9,499) |
Performance-based to time-based, number of shares (in shares) | shares | (110,000) |
Canceled or expired, number of shares (in shares) | shares | (2,000) |
Outstanding - end of year, number of shares (in shares) | shares | 330,917 |
Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 36.94 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 42.60 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 35.13 |
Converted, weighted average grant date fair value (in dollars per share) | $ / shares | 34.78 |
Canceled or expired, weighted average grant date fair value (in dollars per share) | $ / shares | 37.87 |
Outstanding - end of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 36.53 |
Performance-Based | |
Number of Shares [Roll Forward] | |
Outstanding - beginning of year, number of shares (in shares) | shares | 165,000 |
Granted, number of shares (in shares) | shares | 0 |
Vested, number of shares (in shares) | shares | (55,000) |
Performance-based to time-based, number of shares (in shares) | shares | (110,000) |
Canceled or expired, number of shares (in shares) | shares | 0 |
Outstanding - end of year, number of shares (in shares) | shares | 0 |
Weighted Average Grant Date Fair Value [Abstract] | |
Outstanding - beginning of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 34.78 |
Granted, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Vested, weighted average grant date fair value (in dollars per share) | $ / shares | 34.78 |
Converted, weighted average grant date fair value (in dollars per share) | $ / shares | 34.78 |
Canceled or expired, weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Outstanding - end of year, weighted average grant date fair value (in dollars per share) | $ / shares | $ 0 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense | $ 2.2 | $ 2.5 |
Unrecognized compensation cost related to non-vested stock-based compensation | $ 6 | |
Weighted average period | 1 year 6 months |
Commitments, Contingencies an40
Commitments, Contingencies and Litigation Settlement (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2013 | May 31, 2013 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||||||
Litigation settlement gain | $ 3.3 | $ 0 | |||||
TMK IPSCO | |||||||
Loss Contingencies [Line Items] | |||||||
Direct damages sought | $ 10 | ||||||
Damages awarded | $ 2.2 | $ 5.2 | |||||
Loss contingency accrual | $ 7.3 | ||||||
Settled Litigation | TMK IPSCO | |||||||
Loss Contingencies [Line Items] | |||||||
Payments for legal settlements | $ 4 |
Pension and Postretirement Be41
Pension and Postretirement Benefits (Components of net periodic benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefits | ||
Components of net periodic benefit cost | ||
Service costs | $ 0.6 | $ 0.6 |
Interest costs | 0.5 | 0.5 |
Expected return on plan assets | (2.4) | (2.4) |
Recognized net actuarial loss | 0.3 | 0.3 |
Net periodic benefit (income) costs | $ (1) | $ (1) |
Discount rate, weighted average | 3.91% | 4.13% |
Expected return on plan assets, weighted average | 8.25% | 8.25% |
Postretirement Benefits | ||
Components of net periodic benefit cost | ||
Service costs | $ 0 | $ 0 |
Interest costs | 0.1 | 0.1 |
Expected return on plan assets | 0 | 0 |
Recognized net actuarial loss | 0 | 0.1 |
Net periodic benefit (income) costs | $ 0.1 | $ 0.2 |
Discount rate, weighted average | 3.63% | 3.80% |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Loss (Components of accumulated comprehensive loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
January 1, 2017 | $ 236 | |
Other comprehensive income (loss) | 4.1 | $ 2.8 |
March 31, 2017 | 250.2 | |
Cumulative Translation Adjustment | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
January 1, 2017 | (30.8) | (16.9) |
Other comprehensive income (loss) | 3.9 | 2.6 |
March 31, 2017 | (26.9) | (14.3) |
Pension and Postretirement Benefits | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
January 1, 2017 | (11.9) | (13.1) |
Other comprehensive income (loss) | 0.2 | 0.2 |
March 31, 2017 | (11.7) | (12.9) |
Total | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
January 1, 2017 | (42.7) | (30) |
March 31, 2017 | $ (38.6) | $ (27.2) |
Weighted-Average Number of Sh43
Weighted-Average Number of Shares Used in Computing Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Weighted average basic shares outstanding (in shares) | 12,203,505 | 12,076,815 |
Plus: Dilutive impact of employee stock awards (in shares) | 278,874 | 139,777 |
Weighted average diluted shares outstanding (in shares) | 12,482,379 | 12,216,592 |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of anti-dilutive shares (in shares) | 0 | 0 |
Asset Impairment (Details)
Asset Impairment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Asset impairment charge | $ 0 | $ 4 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | May 30, 2017 | May 01, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Apr. 17, 2017 |
Subsequent Event [Line Items] | |||||
Quarterly dividend declared, per common share (in dollars per share) | $ 0.125 | $ 0.125 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Quarterly dividend declared, per common share (in dollars per share) | $ 0.125 | ||||
Senior Notes | |||||
Subsequent Event [Line Items] | |||||
Stated interest rate | 8.125% | ||||
Revolving credit | |||||
Subsequent Event [Line Items] | |||||
Stated interest rate | 4.098% | ||||
Revolving credit | Seventh Amendment Credit Agreement | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 350,000,000 | ||||
Option to increase capacity | 100,000,000 | ||||
Park-Ohio Industries, Inc. | Senior Notes | 6.625% senior notes due 2027 | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Aggregate principal amount | $ 350,000,000 | ||||
Stated interest rate | 6.625% | ||||
Scenario, Forecast | |||||
Subsequent Event [Line Items] | |||||
Quarterly dividend declared, cash outlay | $ 1,600,000 |