Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'TIMKEN CO | ' | ' |
Entity Central Index Key | '0000098362 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $4,829,997,100 |
Entity Common Stock, Shares Outstanding | ' | 92,781,376 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Income Statement [Abstract] | ' | ' | ' | ||
Net sales | $4,341.20 | $4,987 | $5,170.20 | ||
Cost of products sold | 3,249.20 | 3,620.70 | 3,800.50 | ||
Gross Profit | 1,092 | 1,366.30 | 1,369.70 | ||
Selling, general and administrative expenses | 626.6 | 643.9 | 626.2 | ||
Impairment and restructuring charges | 16.4 | [1] | 29.5 | [2] | 14.4 |
Separation Costs | 13 | [3] | 0 | 0 | |
Operating Income | 436 | 692.9 | 729.1 | ||
Interest expense | -24.4 | -31.1 | -36.8 | ||
Interest income | 1.9 | 2.9 | 5.6 | ||
Continued Dumping and Subsidy Offset Act (expenses) receipts, net | -2.8 | 108 | -1.1 | ||
Other income (expense), net | 6.4 | -6.7 | 0 | ||
Income Before Income Taxes | 417.1 | 766 | 696.8 | ||
Provision for income taxes | 154.1 | 270.1 | 240.2 | ||
Net Income | 263 | [4] | 495.9 | [5] | 456.6 |
Less: Net income attributable to noncontrolling interest | 0.3 | 0.4 | 2.3 | ||
Net Income Attributable to The Timken Company | $262.70 | $495.50 | $454.30 | ||
Net Income per Common Share Attributable to The Timken Company Common Shareholders | ' | ' | ' | ||
Basic earnings per share (in dollars per share) | $2.76 | $5.11 | $4.65 | ||
Diluted earnings per share (in dollars per share) | $2.74 | $5.07 | $4.59 | ||
Dividends per share (in dollars per share) | $0.92 | $0.92 | $0.78 | ||
[1] | Impairment and restructuring charges for the second quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $5.2 million, and exit costs of $0.7 million. Impairment and restructuring charges for the third quarter of 2013 included severance and related benefit costs of $3.2 million, including pension settlement costs of $1.5 million, and exit costs of $0.5 million. Impairment and restructuring charges for the fourth quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $0.4 million, impairment charges of $0.7 million and a favorable adjustment for exit costs of $1.9 million. | ||||
[2] | Impairment and restructuring charges for the second quarter of 2012 included severance and related benefit costs of $16.5 million, including a curtailment of pension benefits of $10.7 million, and exit costs of $0.2 million. Impairment and restructuring charges for the third quarter of 2012 included impairment charges of $6.4 million, severance and related benefit costs of $1.3 million and exit costs of $4.2 million. | ||||
[3] | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. | ||||
[4] | Net income for the fourth quarter of 2013 included a gain of $5.4 million on the sale of real estate in Brazil. | ||||
[5] | Net income for the second quarter of 2012 included CDSOA receipts of $109.5 million, net of expenses. |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ||
Net Income | $263 | [1] | $495.90 | [2] | $456.60 |
Other comprehensive income, net of tax: | ' | ' | ' | ||
Foreign currency translation adjustments | -19 | 10.5 | -48.5 | ||
Unrealized (loss) gain on marketable securities | 0 | -0.8 | 0.7 | ||
Pension and postretirement liability adjustment | 398.3 | -133.2 | -218.1 | ||
Change in fair value of derivative financial instruments | 0.3 | -0.4 | 1.3 | ||
Other comprehensive income, net of tax | 379.6 | -123.9 | -264.6 | ||
Comprehensive Income, net of tax | 642.6 | 372 | 192 | ||
Less: comprehensive income attributable to noncontrolling interest | -7.2 | 0.2 | 2.5 | ||
Comprehensive Income Attributable to The Timken Company | $649.80 | $371.80 | $189.50 | ||
[1] | Net income for the fourth quarter of 2013 included a gain of $5.4 million on the sale of real estate in Brazil. | ||||
[2] | Net income for the second quarter of 2012 included CDSOA receipts of $109.5 million, net of expenses. |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current Assets | ' | ' |
Cash and cash equivalents | $384.60 | $586.40 |
Restricted cash | 15.1 | 15.1 |
Accounts receivable, less allowances: 2013 - $10.3 million; 2012 - $12.1 million | 566.7 | 546.7 |
Inventories, net | 809.9 | 862.1 |
Deferred income taxes | 69.8 | 86.5 |
Deferred charges and prepaid expenses | 27.6 | 12.6 |
Other current assets | 63.8 | 52.6 |
Total Current Assets | 1,937.50 | 2,162 |
Property, Plant and Equipment, Net | 1,558.10 | 1,405.30 |
Other Assets | ' | ' |
Goodwill | 358.7 | 338.9 |
Non-current pension assets | 342.6 | 0.2 |
Other intangible assets | 219.1 | 224.7 |
Deferred income taxes | 10.1 | 74.1 |
Other non-current assets | 51.8 | 39 |
Total Other Assets | 982.3 | 676.9 |
Total Assets | 4,477.90 | 4,244.20 |
Current Liabilities | ' | ' |
Short-term debt | 18.6 | 14.3 |
Accounts payable, trade | 222.5 | 216.2 |
Salaries, wages and benefits | 183.1 | 213.9 |
Income taxes payable | 107.1 | 33.5 |
Deferred income taxes | 7.6 | 2.8 |
Other current liabilities | 190.5 | 177.5 |
Current portion of long-term debt | 250.7 | 9.6 |
Total Current Liabilities | 980.1 | 667.8 |
Non-Current Liabilities | ' | ' |
Long-term debt | 206.6 | 455.1 |
Accrued pension cost | 179 | 391.4 |
Accrued postretirement benefits cost | 233.9 | 371.8 |
Deferred income taxes | 166.9 | 4.5 |
Other non-current liabilities | 62.8 | 107 |
Total Non-Current Liabilities | 849.2 | 1,329.80 |
Shareholders’ Equity | ' | ' |
Class I and II Serial Preferred Stock without par value: Authorized – 10,000,000 shares each class, none issued | 0 | 0 |
Common stock without par value: Authorized – 200,000,000 shares Issued (including shares in treasury) (2013 – 98,375,135 shares; 2012 – 98,375,153 shares) Stated capital | 53.1 | 53.1 |
Other paid-in capital | 896.4 | 891.4 |
Earnings invested in the business | 2,586.40 | 2,411.20 |
Accumulated other comprehensive loss | -626.1 | -1,013.20 |
Treasury shares at cost (2013 - 5,252,441; 2012 - 2,476,921 shares) | -273.2 | -110.3 |
Total Shareholders’ Equity | 2,636.60 | 2,232.20 |
Noncontrolling interest | 12 | 14.4 |
Total Equity | 2,648.60 | 2,246.60 |
Total Liabilities and Equity | $4,477.90 | $4,244.20 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowances for accounts receivable | $10.30 | $12.10 |
Preferred stock, no par value (Class I & Class II Preferred stock) | $0 | $0 |
Preferred stock, shares authorized (Class I & Class II Preferred stock) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (Class I & Class II Preferred stock) | 0 | 0 |
Common stock, no par value | $0 | $0 |
Company common stock shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 98,375,135 | 98,375,135 |
Treasury shares | 5,252,441 | 2,476,921 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Activities | ' | ' | ' |
Net income attributable to The Timken Company | $262.70 | $495.50 | $454.30 |
Net income attributable to noncontrolling interest | 0.3 | 0.4 | 2.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 194.6 | 198 | 192.5 |
Impairment charges | 0.7 | 6.6 | 3.3 |
Loss on sale of assets | 1.9 | 5.8 | 0.6 |
Deferred income tax provision | 0.5 | 123.1 | 124.5 |
Stock-based compensation expense | 18.6 | 18 | 16.9 |
Excess tax benefit related to stock-based compensation, Operating Activities | -10.9 | -9.9 | -9.5 |
Pension and other postretirement expense | 85.3 | 91.5 | 74.9 |
Pension and other postretirement benefit contributions and payments | -158 | -412.7 | -456 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -13.4 | 103 | -111.6 |
Inventories | 62.5 | 102.5 | -125.6 |
Accounts payable, trade | 3.5 | -73.2 | 14.9 |
Other accrued expenses | -38.5 | -54 | 29.1 |
Income taxes | 34.3 | 21.7 | 9.2 |
Other, net | -14.1 | 7.8 | -10.4 |
Net Cash Provided by Operating Activities | 430 | 624.1 | 209.4 |
Investing Activities | ' | ' | ' |
Capital expenditures | -325.8 | -297.2 | -205.3 |
Acquisitions, net of cash acquired of $0.4 million in 2013 | -64.2 | -20.7 | -292.1 |
Proceeds from disposals of property, plant and equipment | 7.3 | 2 | 5.7 |
Divestitures, net of cash divested of $0.9 million in 2012 | 0 | 1.2 | 4.8 |
Increase (Decrease) in Marketable Securities, Restricted | 5.5 | 14.3 | -22.7 |
Other | 1.2 | 2.7 | 1.6 |
Net Cash Used by Investing Activities | -376 | -297.7 | -508 |
Financing Activities | ' | ' | ' |
Cash dividends paid to shareholders | -87.5 | -89 | -76 |
Purchase of treasury shares | -189.2 | -112.3 | -43.8 |
Proceeds from exercise of stock options | 13.1 | 13.8 | 16.6 |
Excess tax benefits related to stock-based compensation, Financing Activities | 10.9 | 9.9 | 9.5 |
Proceeds from issuance of long-term debt | 1.9 | 0 | 9.5 |
Deferred financing costs | 0 | 0 | -3 |
Payments on long-term debt | -9.9 | -26.9 | -8.9 |
Short-term debt activity, net | 4.8 | -7.7 | 1 |
Decrease (increase) in restricted cash | 0 | 3.6 | -3.6 |
Other | 6.6 | 0 | -5.6 |
Net Cash Used by Financing Activities | -249.3 | -208.6 | -104.3 |
Effect of exchange rate changes on cash | -6.5 | 3.8 | -9.4 |
(Decrease) Increase In Cash and Cash Equivalents | -201.8 | 121.6 | -412.3 |
Cash and cash equivalents at beginning of year | 586.4 | 464.8 | 877.1 |
Cash and Cash Equivalents at End of Year | $384.60 | $586.40 | $464.80 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Statement of Cash Flows [Abstract] | ' |
Amount of Cash Divested | $0.90 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Stated Capital | Other Paid-In Capital | Earnings Invested in the Business | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest | |
In Millions, unless otherwise specified | ||||||||
Beginning Balance at Dec. 31, 2010 | $1,941.80 | $53.10 | $881.70 | $1,626.40 | ($624.70) | ($11.50) | $16.80 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 456.6 | ' | ' | 454.3 | ' | ' | 2.3 | |
Foreign currency translation adjustments | -48.5 | ' | ' | ' | -48.5 | ' | ' | |
Pension and postretirement liability adjustment (net of income tax of $130.1 million, $55.3 million and $226.5 for 2011, 2012 and 2013, respectively) | -218.1 | ' | ' | ' | -218.2 | ' | 0.1 | |
Unrealized gain (loss) on marketable securities | 0.7 | ' | ' | ' | 0.6 | ' | 0.1 | |
Change in fair value of derivative financial instruments, net of reclassifications | 1.3 | ' | ' | ' | 1.3 | ' | ' | |
Change in ownership of noncontrolling interest | -0.5 | ' | -0.5 | ' | ' | ' | ' | |
Dividends declared to noncontrolling interest | -5.1 | ' | ' | ' | ' | ' | -5.1 | |
Dividends - $0.78, $0.92 and $0.92 per share for 2011, 2012 and 2013, respectively | -76 | ' | ' | -76 | ' | ' | ' | |
Excess tax benefit from stock compensation | 9.5 | ' | 9.5 | ' | ' | ' | ' | |
Stock-based compensation expense | 16.9 | ' | 16.9 | ' | ' | ' | ' | |
Stock purchased at cost | -43.8 | ' | ' | ' | ' | -43.8 | ' | |
Stock option exercise activity | 16.6 | ' | -17.5 | ' | ' | 34.1 | ' | |
Restricted shares (issued) surrendered | -0.3 | ' | -0.9 | ' | ' | 0.6 | ' | |
Shares surrendered for taxes | -8.6 | ' | ' | ' | ' | -8.6 | ' | |
Ending Balance at Dec. 31, 2011 | 2,042.50 | 53.1 | 889.2 | 2,004.70 | -889.5 | -29.2 | 14.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 495.9 | [1] | ' | ' | 495.5 | ' | ' | 0.4 |
Foreign currency translation adjustments | 10.5 | ' | ' | ' | 10.5 | ' | ' | |
Pension and postretirement liability adjustment (net of income tax of $130.1 million, $55.3 million and $226.5 for 2011, 2012 and 2013, respectively) | -133.2 | ' | ' | ' | -133.2 | ' | ' | |
Unrealized gain (loss) on marketable securities | -0.8 | ' | ' | ' | -0.6 | ' | -0.2 | |
Change in fair value of derivative financial instruments, net of reclassifications | -0.4 | ' | ' | ' | -0.4 | ' | ' | |
Dividends - $0.78, $0.92 and $0.92 per share for 2011, 2012 and 2013, respectively | -89 | ' | ' | -89 | ' | ' | ' | |
Excess tax benefit from stock compensation | 9.9 | ' | 9.9 | ' | ' | ' | ' | |
Stock-based compensation expense | 18 | ' | 18 | ' | ' | ' | ' | |
Stock purchased at cost | -112.3 | ' | ' | ' | ' | -112.3 | ' | |
Stock option exercise activity | 13.4 | ' | -21.9 | ' | ' | 35.3 | ' | |
Restricted shares (issued) surrendered | 0.2 | ' | -3.8 | ' | ' | 4 | ' | |
Shares surrendered for taxes | -8.1 | ' | ' | ' | ' | -8.1 | ' | |
Ending Balance at Dec. 31, 2012 | 2,246.60 | 53.1 | 891.4 | 2,411.20 | -1,013.20 | -110.3 | 14.4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 263 | [2] | ' | ' | 262.7 | ' | ' | 0.3 |
Foreign currency translation adjustments | -19 | ' | ' | ' | -11.5 | ' | -7.5 | |
Pension and postretirement liability adjustment (net of income tax of $130.1 million, $55.3 million and $226.5 for 2011, 2012 and 2013, respectively) | 398.3 | ' | ' | ' | 398.3 | ' | ' | |
Unrealized gain (loss) on marketable securities | 0 | ' | ' | ' | ' | ' | ' | |
Change in fair value of derivative financial instruments, net of reclassifications | 0.3 | ' | ' | ' | 0.3 | ' | ' | |
Change in ownership of noncontrolling interest | 8.9 | ' | 1.3 | ' | ' | ' | 7.6 | |
Dividends declared to noncontrolling interest | -2.8 | ' | ' | ' | ' | ' | -2.8 | |
Dividends - $0.78, $0.92 and $0.92 per share for 2011, 2012 and 2013, respectively | -87.5 | ' | ' | -87.5 | ' | ' | ' | |
Excess tax benefit from stock compensation | 10.9 | ' | 10.9 | ' | ' | ' | ' | |
Stock-based compensation expense | 18.6 | ' | 18.6 | ' | ' | ' | ' | |
Stock purchased at cost | -189.2 | ' | ' | ' | ' | -189.2 | ' | |
Stock option exercise activity | 7.8 | ' | -22 | ' | ' | 29.8 | ' | |
Restricted shares (issued) surrendered | 1 | ' | -3.8 | ' | ' | 4.8 | ' | |
Shares surrendered for taxes | -8.3 | ' | ' | ' | ' | -8.3 | ' | |
Ending Balance at Dec. 31, 2013 | $2,648.60 | $53.10 | $896.40 | $2,586.40 | ($626.10) | ($273.20) | $12 | |
[1] | Net income for the second quarter of 2012 included CDSOA receipts of $109.5 million, net of expenses. | |||||||
[2] | Net income for the fourth quarter of 2013 included a gain of $5.4 million on the sale of real estate in Brazil. |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension and postretirement liability adjustment, Tax | $226.50 | $55.30 | $130.10 |
Dividend per share | $0.92 | $0.92 | $0.78 |
Earnings Invested in the Business | ' | ' | ' |
Dividend per share | $0.92 | $0.92 | $0.78 |
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' |
Pension and postretirement liability adjustment, Tax | 226.5 | 55.3 | 130.1 |
Noncontrolling Interest | ' | ' | ' |
Pension and postretirement liability adjustment, Tax | $226.50 | $55.30 | $130.10 |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies | ' |
Principles of Consolidation: | |
The consolidated financial statements include the accounts and operations of the Company in which a controlling interest is maintained. Investments in affiliated companies that the Company does not control, and the activities of which it is not the primary beneficiary, are accounted for using the equity method. All significant intercompany accounts and transactions are eliminated upon consolidation. | |
Revenue Recognition: | |
The Company recognizes revenue when title passes to the customer. This occurs at the shipping point except for goods sold by certain foreign entities and certain exported goods, where title passes when the goods reach their destination. Selling prices are fixed based on purchase orders or contractual arrangements. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold in the Consolidated Statements of Income. | |
The Company acquired the assets of Philadelphia Gear in July 2011. Philadelphia Gear recognizes a portion of its revenues on the percentage-of-completion method measured on the cost-to-cost basis. In 2013 and 2012, the Company recognized approximately $45 million and $60 million, respectively, in net sales under the percentage-of-completion method. | |
Cash Equivalents: | |
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |
Allowance for Doubtful Accounts: | |
The Company maintains an allowance for doubtful accounts, which represents an estimate of the losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance was based upon historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts and management’s evaluation of business risk. The Company extends credit to customers satisfying pre-defined credit criteria. The Company believes it has limited concentration of credit risk due to the diversity of its customer base. | |
Inventories: | |
Inventories are valued at the lower of cost or market. The majority of domestic inventories are valued by the LIFO method and the balance of the Company’s inventories is valued by the FIFO method. | |
Investments: | |
Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. The Company held short-term investments as of December 31, 2013 and 2012 with a fair value and cost basis of $13.9 million and $17.3 million, respectively, which were included in other current assets on the Consolidated Balance Sheets. | |
Property, Plant and Equipment: | |
Property, plant and equipment, net is valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings, three to ten years for computer software and three to 20 years for machinery and equipment. | |
The impairment of long-lived assets is evaluated when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time to reduce the asset to the lower of its fair value or its net book value. | |
Goodwill and Other Intangible Assets: | |
Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from one to 20 years. Goodwill and indefinite-lived intangible assets not subject to amortization are tested for impairment at least annually. The Company performs its annual impairment test as of October first, after the annual forecasting process is completed. Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying values may not be recoverable in accordance with accounting rules related to goodwill and other intangible assets. | |
Effective October 1, 2011, the Company adopted the provisions of Accounting Standards Update (ASU) 2011-08, “Intangibles–Goodwill and Other (Topic 350): Testing Goodwill for Impairment,” which allows companies to assess qualitative factors to determine if goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. Effective October 1, 2012, the Company adopted the provisions of ASU 2012-02, “Intangibles–Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment,” which allows companies to assess qualitative factors to determine if indefinite-lived intangibles might be impaired and whether it is necessary to perform the two-step impairment test. | |
Product Warranties: | |
The Company provides limited warranties on certain of its products. The Company accrues liabilities for warranties based upon specific claims and a review of historical warranty claim experience in accordance with accounting rules relating to contingent liabilities. The Company records and accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim data and historical experience change. | |
Income Taxes: | |
The Company accounts for income taxes in accordance with Accounting Standards Codification (ASC) 740, “Income Taxes.” Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. The Company recognizes valuation allowances against deferred tax assets by tax jurisdiction when it is more likely than not that such assets will not be realized. Accruals for uncertain tax positions are provided for in accordance with ASC 740-10. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. | |
Foreign Currency Translation: | |
Assets and liabilities of subsidiaries, other than those located in highly inflationary countries, are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are reflected as a separate component of accumulated other comprehensive loss. Gains and losses resulting from foreign currency transactions and the translation of financial statements of subsidiaries in highly inflationary countries are included in the Consolidated Statements of Income. The Company realized foreign currency exchange losses of $9.2 million, $6.9 million and $1.4 million in 2013, 2012 and 2011, respectively. | |
Pension and Other Postretirement Benefits: | |
The Company recognizes an overfunded status or underfunded status (i.e., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and postretirement benefit plans on the Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive loss, net of tax. The adjustment to accumulated other comprehensive loss represents the current year net unrecognized actuarial gains and losses and unrecognized prior service costs. These amounts will be recognized in future periods as net periodic benefit cost. | |
Stock-Based Compensation: | |
The Company recognizes stock-based compensation expense based on the grant date fair value of the stock-based awards over their required vesting period. Stock options are issued with an exercise price equal to the opening market price of Timken common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. The fair value of stock-based awards that will settle in Timken common shares, other than stock options, is based on the opening market price of Timken common shares on the grant date. The fair value of stock-based awards that will settle in cash are remeasured at each reporting period until settlement of the awards. | |
Earnings Per Share: | |
Unvested restricted shares provide for the payment of nonforfeitable dividends. The Company considers these awards as participating securities. Earnings per share are computed using the two-class method. Basic earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding, adjusted for the dilutive impact of outstanding stock-based awards. | |
Derivative Instruments: | |
The Company recognizes all derivatives on the Consolidated Balance Sheets at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. If the derivative is designated and qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive loss until the hedged item is recognized in earnings. The Company’s holdings of forward foreign currency exchange contracts qualify as derivatives pursuant to the criteria established in derivative accounting guidance, and the Company has designated certain of those derivatives as hedges. | |
Recent Accounting Pronouncements: | |
In February 2013, the Financial Accounting Standards Board (FASB) issued ASU No. 2013-02, Comprehensive Income (Topic 220): "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," effective for annual and interim reporting periods beginning after December 15, 2012. The new accounting rules require all U.S. public companies to report the effect of items reclassified out of accumulated other comprehensive income on the respective line items of net income, net of tax, either on the face of the financial statements where net income is presented or in a tabular format in the notes to the financial statements. Effective January 1, 2013, the Company adopted ASU No. 2013-02. The new accounting rules expand the disclosure of other comprehensive income and had no impact on the Company's results of operations and financial condition. See Note 4 - Accumulated Other Comprehensive Income (Loss) for additional information on the new disclosure. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The new accounting rules are effective for annual and interim reporting periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting ASU 2013-11, if any, on the Company's results of operations and financial condition. | |
Use of Estimates: | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are reviewed and updated regularly to reflect recent experience. | |
Reclassifications: | |
Certain amounts reported in the 2012 Consolidated Financial Statements have been reclassified to correct an immaterial error. The Company reclassified $15.1 million from other current assets to restricted cash. In addition, the Company reclassified approximately $12 million from current deferred tax assets to non-current deferred tax assets. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Business Combinations and Divestitures [Abstract] | ' | |||||||||
Acquisitions and Divestitures | ' | |||||||||
Acquisitions: | ||||||||||
On May 13, 2013, the Company completed the acquisition of Standard Machine, which provides new gearboxes, gearbox service and repair, open gearing, large gear fabrication, machining and field technical services to end users in Canada and the western United States, for approximately $37.0 million in cash, including cash acquired of approximately $0.1 million that was subject to a post-closing indebtedness adjustment. Based in Saskatoon, Saskatchewan, Canada, Standard Machine employs 125 people and serves a wide variety of industrial sectors including mining, oil and gas, and pulp and paper. The results of operations of Standard Machine were included in the Company's Consolidated Statements of Income for the period subsequent to the effective date of the acquisition and are reported in the Process Industries segment. | ||||||||||
On April 11, 2013, the Company completed the acquisition of substantially all of the assets of Smith Services, an electric motor repair specialist, for approximately $13.2 million. Based in Princeton, West Virginia, Smith Services employs approximately 140 people. The results of operations of Smith Services were included in the Company's Consolidated Statements of Income for the period subsequent to the effective date of the acquisition and are reported in the Process Industries segment. | ||||||||||
On March 11, 2013, the Company completed the acquisition of Interlube, which makes and markets automated lubrication delivery systems and related components to end market sectors including commercial vehicles, construction, mining, and heavy and general industries, for approximately $14.5 million, including cash acquired of approximately $0.3 million, that was subject to a post-closing indebtedness adjustment. Based in Plymouth, United Kingdom, Interlube employs about 90 people. The results of operations of Interlube were included in the Company's Consolidated Statements of Income for the period subsequent to the effective date of the acquisition and are reported in the Mobile Industries segment. | ||||||||||
On December 31, 2012, the Company completed the acquisition of the assets of Wazee, a leading regional provider of motor, generator, wind turbine and industrial crane services to diverse end-markets including oil and gas, wind, agriculture, material handling and construction, for approximately $20 million in cash. Based in Denver, Colorado, Wazee employs over 100 people. The results of operations of Wazee have been included in the Company's Consolidated Statements of Income since January 1, 2013 and are reported in the Process Industries segment. In addition to the Wazee acquisition, the Company purchased the remaining interest in its joint venture in Curitiba, Brazil. | ||||||||||
On October 3, 2011, the Company completed the acquisition of Drives, a leading manufacturer of highly engineered drive-chains, roller-chains and conveyor augers for agricultural and industrial markets, for approximately $93 million in cash. Based in Fulton, Illinois, Drives employs approximately 430 people. The results of operations of Drives were included in the Company’s Consolidated Statements of Income for the period subsequent to the effective date of the acquisition and are reported in the Mobile Industries and Process Industries segments. | ||||||||||
On July 1, 2011, the Company completed the acquisition of substantially all of the assets of Philadelphia Gear, a leading provider of high-performance gear drives and components with a strong focus on value-added aftermarket capabilities in the industrial and military marine sectors, for approximately $199 million in cash. Based in King of Prussia, Pennsylvania, Philadelphia Gear employs approximately 220 people. The results of operations of Philadelphia Gear were included in the Company’s Consolidated Statements of Income for the period subsequent to the effective date of the acquisition and are reported in the Process Industries segment. | ||||||||||
Pro forma results of these operations have not been presented because the effects of the acquisitions were not significant to the Company’s income from operations or total assets in 2013, 2012 or 2011. The purchase price allocations, net of cash acquired, and any subsequent purchase price adjustments for acquisitions in 2013, 2012 and 2011 are presented below: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Assets: | ||||||||||
Accounts receivable, net | $ | 10.6 | $ | 4.7 | $ | 25.6 | ||||
Inventories, net | 12.7 | 2.3 | 23.6 | |||||||
Deferred charges and prepaid expenses | 0.3 | 0.1 | 0.9 | |||||||
Other current assets | 0.1 | 0.2 | 0.1 | |||||||
Property, plant and equipment, net | 19.5 | 3 | 32.1 | |||||||
Goodwill | 18.1 | 7.1 | 83.3 | |||||||
Other intangible assets | 13 | 7.7 | 146.9 | |||||||
Other non-current assets | — | — | 0.6 | |||||||
Total assets acquired | $ | 74.3 | $ | 25.1 | $ | 313.1 | ||||
Liabilities: | ||||||||||
Accounts payable, trade | $ | 3.3 | $ | 2.3 | $ | 10.7 | ||||
Salaries, wages and benefits | 1.4 | 0.3 | 5.1 | |||||||
Other current liabilities | 0.9 | 1.8 | 5.2 | |||||||
Other non-current liabilities | 4.5 | — | — | |||||||
Total liabilities assumed | $ | 10.1 | $ | 4.4 | $ | 21 | ||||
Net assets acquired | $ | 64.2 | $ | 20.7 | $ | 292.1 | ||||
The following table summarizes the purchase price allocation for identifiable intangible assets acquired in 2013: | ||||||||||
Purchase | ||||||||||
Price Allocation | ||||||||||
Weighted- | ||||||||||
Average Life | ||||||||||
Trade name | $ | 1.1 | 13 years | |||||||
Technology / Know-how | 5.2 | 18 years | ||||||||
All customer relationships | 6.4 | 20 years | ||||||||
Non-compete agreements | 0.3 | 4 years | ||||||||
Total intangible assets | $ | 13 | ||||||||
The following table summarizes the final purchase price allocation for identifiable intangible assets acquired in 2012: | ||||||||||
Initial Purchase | Adjusted Purchase | |||||||||
Price Allocation | Price Allocation | |||||||||
Weighted- | Weighted- | |||||||||
Average Life | Average Life | |||||||||
Trade name | 1.2 | 8 years | 0.8 | 6 years | ||||||
Know how | 3.5 | 20 years | 3.4 | 20 years | ||||||
All customer relationships | 2.5 | 10 years | 3.5 | 9 years | ||||||
Non-compete agreements | 0.5 | 5 years | — | |||||||
Total intangible assets | $ | 7.7 | $ | 7.7 | ||||||
Divestitures: | ||||||||||
On December 31, 2012, the Company completed the sale of its interest in AGC to Machinery Tec Masters Corporation. The Company received $2.2 million in cash proceeds for AGC. The Company recognized a pretax loss on divestiture of $2.0 million, and the loss is reflected in other (expense) income, net in the Consolidated Statement of Income. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Earnings Per Share | ' | |||||||||
The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the years ended December 31: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Numerator: | ||||||||||
Net Income Attributable to The Timken Company | $ | 262.7 | $ | 495.5 | $ | 454.3 | ||||
Less: undistributed earnings allocated to nonvested stock | (0.3 | ) | (1.5 | ) | (1.6 | ) | ||||
Net income available to common shareholders for basic earnings | $ | 262.4 | $ | 494 | $ | 452.7 | ||||
per share and diluted earnings per share | ||||||||||
Denominator: | ||||||||||
Weighted-average number of shares outstanding – basic | 94,989,561 | 96,671,613 | 97,451,064 | |||||||
Effect of dilutive securities: | ||||||||||
Stock options and awards - based on the treasury | 834,167 | 930,868 | 1,204,449 | |||||||
stock method | ||||||||||
Weighted-average number of shares outstanding, assuming | 95,823,728 | 97,602,481 | 98,655,513 | |||||||
dilution of stock options and awards | ||||||||||
Basic earnings per share | $ | 2.76 | $ | 5.11 | $ | 4.65 | ||||
Diluted earnings per share | $ | 2.74 | $ | 5.07 | $ | 4.59 | ||||
The exercise prices for certain stock options that the Company has awarded exceed the average market price of the Company’s common shares. Such stock options are antidilutive and were not included in the computation of diluted earnings per share. The antidilutive stock options outstanding were 382,525, 879,413 and 436,850 during 2013, 2012 and 2011, respectively. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
The following tables present details about components of accumulated other comprehensive income (loss) for the years ended December 31, 2013 and December 31, 2012 respectively: | ||||||||||||||||
Foreign currency | Pension and postretirement | Change in fair value of | Total | |||||||||||||
translation adjustments | liability adjustments | derivative financial instruments | ||||||||||||||
Balance at December 31, 2012 | $ | 49 | $ | (1,061.5 | ) | $ | (0.7 | ) | $ | (1,013.2 | ) | |||||
Other comprehensive (loss) income before | (19.0 | ) | 494.2 | 0.7 | 475.9 | |||||||||||
reclassifications, before income tax | ||||||||||||||||
Amounts reclassified from accumulated other | — | 130.6 | (0.4 | ) | 130.2 | |||||||||||
comprehensive income (loss), before income tax | ||||||||||||||||
Income tax benefit | — | (226.5 | ) | — | (226.5 | ) | ||||||||||
Net current period other comprehensive (loss) income, | (19.0 | ) | 398.3 | 0.3 | 379.6 | |||||||||||
net of income taxes | ||||||||||||||||
Non-controlling interest | 7.5 | — | — | 7.5 | ||||||||||||
Net current period comprehensive (loss) income, net of | (11.5 | ) | 398.3 | 0.3 | 387.1 | |||||||||||
income taxes and non-controlling interest | ||||||||||||||||
Balance at December 31, 2013 | $ | 37.5 | $ | (663.2 | ) | $ | (0.4 | ) | $ | (626.1 | ) | |||||
Foreign currency | Pension and postretirement | Change in fair value of | Change in fair value of | Total | ||||||||||||
translation adjustments | liability adjustments | marketable securities | derivative financial instruments | |||||||||||||
Balance, December 31, 2011 | $ | 38.5 | $ | (928.3 | ) | $ | 0.6 | $ | (0.3 | ) | $ | (889.5 | ) | |||
Other comprehensive income (loss) before | 10.5 | (288.9 | ) | — | 0.4 | (278.0 | ) | |||||||||
reclassifications, before income tax | ||||||||||||||||
Amounts reclassified from accumulated | — | 100.4 | (1.2 | ) | (0.8 | ) | 98.4 | |||||||||
other comprehensive income (loss), before | ||||||||||||||||
income tax | ||||||||||||||||
Income tax expense | — | 55.3 | 0.4 | — | 55.7 | |||||||||||
Net current period other comprehensive | 10.5 | (133.2 | ) | (0.8 | ) | (0.4 | ) | (123.9 | ) | |||||||
(loss) income, net of income taxes | ||||||||||||||||
Non-controlling interest | — | — | 0.2 | — | 0.2 | |||||||||||
Net current period comprehensive (loss) | 10.5 | (133.2 | ) | (0.6 | ) | (0.4 | ) | (123.7 | ) | |||||||
income, net of income taxes and | ||||||||||||||||
non-controlling interest | ||||||||||||||||
Balance at December 31, 2012 | $ | 49 | $ | (1,061.5 | ) | $ | — | $ | (0.7 | ) | $ | (1,013.2 | ) | |||
Other comprehensive (loss) income before reclassifications and income taxes includes the effect of foreign currency. The reclassification of the pension and postretirement liability adjustment was included in costs of products sold and selling, general and administrative expenses on the Consolidated Statements of Income. The reclassification of the remaining components of accumulated other comprehensive (loss) income were included in other income (expense), net on the Consolidated Statements of Income. |
Inventories
Inventories | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Inventories | ' | ||||||
The components of inventories at December 31, 2013 and 2012 were as follows: | |||||||
2013 | 2012 | ||||||
Manufacturing supplies | $ | 59.7 | $ | 64.3 | |||
Raw materials | 94.5 | 110.7 | |||||
Work in process | 294.5 | 278.1 | |||||
Finished products | 381.5 | 430.4 | |||||
Subtotal | $ | 830.2 | $ | 883.5 | |||
Allowance for surplus and obsolete inventory | (20.3 | ) | (21.4 | ) | |||
Total Inventories, net | $ | 809.9 | $ | 862.1 | |||
Inventories valued on the LIFO cost method were 54% and the remaining 46% were valued by the FIFO method. If all inventories had been valued at FIFO, inventories would have been $278.3 million and $280.6 million greater at December 31, 2013 and 2012, respectively. The Company recognized a decrease in its LIFO reserve of $2.3 million during 2013 compared to a decrease in its LIFO reserve of $7.1 million during 2012. The decrease in the LIFO reserve recognized during 2013 was due to lower costs and quantities of inventory on hand, as well as the mix of inventory. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, Plant and Equipment | ' | ||||||
The components of property, plant and equipment, net at December 31, 2013 and 2012 were as follows: | |||||||
2013 | 2012 | ||||||
Land and buildings | $ | 685 | $ | 653.8 | |||
Machinery and equipment | 3,393.10 | 3,138.30 | |||||
Subtotal | $ | 4,078.10 | $ | 3,792.10 | |||
Less allowances for depreciation | (2,520.0 | ) | (2,386.8 | ) | |||
Property, Plant and Equipment, net | $ | 1,558.10 | $ | 1,405.30 | |||
Total depreciation expense was $175.9 million, $179.0 million and $178.5 million in 2013, 2012 and 2011, respectively. At December 31, 2013 and 2012, property, plant and equipment, net included $81.1 million and $84.9 million, respectively, of capitalized software. Depreciation expense for capitalized software was $25.1 million, $23.5 million and $21.7 million in 2013, 2012 and 2011, respectively. | |||||||
In November 2013, the Company finalized the sale of its former manufacturing facility in Sao Paulo. The Company expects to receive approximately $34 million over a twenty-four month period, of which $5.9 million was received as of December 31, 2013. The total costs of this transaction, including the net book value of the real estate and broker's commissions, were approximately $3 million. The Company is recognizing the gain on the sale of this facility using the installment method. In the fourth quarter of 2013, the Company recognized a gain of $5.4 million and expects to recognize an additional gain of approximately $25 million in 2014 related to this transaction. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||
Goodwill and Other Intangible Assets | ' | ||||||||||||||||||
Goodwill: | |||||||||||||||||||
The Company tests goodwill and indefinite-lived intangible assets for impairment at least annually. The Company performs its annual impairment test as of October first after the annual forecasting process is completed. Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. | |||||||||||||||||||
The Company reviews goodwill for impairment at the reporting unit level. Prior to 2012, the Company’s reporting units were the same as its reportable segments: Mobile Industries, Process Industries, Aerospace and Steel. During 2012, management began reviewing goodwill for impairment at a level below the segment level for the Process Industries and Aerospace segments. This change was necessitated by a change in management structure, as well as the level of review of financial information by management within the Aerospace segment, and the acquisition of the assets of Philadelphia Gear. Philadelphia Gear is part of the Process Industries segment and provides aftermarket gear box repair services and gear-drive systems for the industrial, energy and military marine market sectors. In 2013, the acquisitions of Wazee, Smith Services and Standard Machine were grouped with Philadelphia Gear to comprise the Process Services reporting unit. The Company still reviews goodwill for impairment at the segment level for the Mobile Industries and Steel segments. | |||||||||||||||||||
During 2011, the Company adopted the provisions of ASU No. 2011-8, “Intangibles–Goodwill and Other (Topic 350): Testing Goodwill for Impairment,” which allows companies to assess qualitative factors to determine if goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. Based on a review of various qualitative factors, management concluded that the goodwill for the Mobile Industries and Process Industries Segment, excluding the Process Services reporting unit, was not impaired and that the two-step approach was not required to be performed for these reporting units. Based on a review of various qualitative factors, management concluded that the goodwill for the Steel segment, the Process Services reporting unit and the three reporting units within the Aerospace segment, would be tested under the two-step approach. The Company prepares its goodwill impairment analysis by comparing the estimated fair value of each reporting unit, using an income approach (a discounted cash flow model), as well as a market approach, with its carrying value. | |||||||||||||||||||
In 2013, 2012 and 2011, no goodwill impairment loss was recorded. | |||||||||||||||||||
Changes in the carrying value of goodwill were as follows: | |||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||
Mobile Industries | Process | Aerospace | Steel | Total | |||||||||||||||
Industries | |||||||||||||||||||
Beginning Balance | $ | 17.7 | $ | 146.4 | $ | 162.2 | $ | 12.6 | $ | 338.9 | |||||||||
Acquisitions | 4.3 | 13.8 | — | — | 18.1 | ||||||||||||||
Other | 0.3 | 1.2 | 0.2 | — | 1.7 | ||||||||||||||
Ending Balance | $ | 22.3 | $ | 161.4 | $ | 162.4 | $ | 12.6 | $ | 358.7 | |||||||||
Acquisitions in 2013 primarily relate to the purchase price allocation for Interlube completed on March 11, 2013, Smith Services completed on April 11, 2013 and Standard Machine completed on May 13, 2013. “Other” includes foreign currency translation adjustments for 2013. The goodwill acquired from Smith Services of $1.7 million is tax-deductible and will be amortized over 15 years. Note 2 - Acquisitions and Divestitures for additional information on the acquisitions listed above. | |||||||||||||||||||
Year ended December 31, 2012: | |||||||||||||||||||
Mobile Industries | Process | Aerospace | Steel | Total | |||||||||||||||
Industries | |||||||||||||||||||
Beginning Balance | $ | 16.9 | $ | 141.1 | $ | 162.1 | $ | 12.6 | $ | 332.7 | |||||||||
Acquisitions | 0.8 | 6.3 | — | — | 7.1 | ||||||||||||||
Other | — | (1.0 | ) | 0.1 | — | (0.9 | ) | ||||||||||||
Ending Balance | $ | 17.7 | $ | 146.4 | $ | 162.2 | $ | 12.6 | $ | 338.9 | |||||||||
Acquisitions in 2012 primarily relate to the purchase price allocation of $6.1 million for the Wazee acquisition completed on December 31, 2012. All of the goodwill acquired in 2012 is tax-deductible and will be amortized over 15 years for tax purposes. “Other” primarily includes foreign currency translation adjustments for 2012. | |||||||||||||||||||
Intangibles Assets: | |||||||||||||||||||
The following table displays intangible assets as of December 31: | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||
Intangible assets subject | |||||||||||||||||||
to amortization: | |||||||||||||||||||
Customer relationships | $ | 167.3 | $ | 51.3 | $ | 116 | $ | 159.6 | $ | 38.1 | $ | 121.5 | |||||||
Know-how | 31.4 | 4.4 | 27 | 26.1 | 2.8 | 23.3 | |||||||||||||
Industrial license agreements | 0.1 | 0.1 | — | 0.2 | 0.1 | 0.1 | |||||||||||||
Land-use rights | 8.9 | 4.5 | 4.4 | 8.6 | 4.1 | 4.5 | |||||||||||||
Patents | 2.3 | 1.8 | 0.5 | 2.5 | 1.8 | 0.7 | |||||||||||||
Technology use | 46.2 | 13.5 | 32.7 | 47 | 11.5 | 35.5 | |||||||||||||
Trademarks | 4.6 | 2.7 | 1.9 | 4.2 | 3.4 | 0.8 | |||||||||||||
PMA licenses | 8.8 | 4 | 4.8 | 8.8 | 3.6 | 5.2 | |||||||||||||
Non-compete agreements | 4.2 | 3.8 | 0.4 | 4.4 | 3.3 | 1.1 | |||||||||||||
Unpatented technology | 7.2 | 7.2 | — | 7.2 | 6.7 | 0.5 | |||||||||||||
$ | 281 | $ | 93.3 | $ | 187.7 | $ | 268.6 | $ | 75.4 | $ | 193.2 | ||||||||
Intangible assets not | |||||||||||||||||||
subject to amortization: | |||||||||||||||||||
Tradename | $ | 17.2 | $ | — | $ | 17.2 | $ | 17.3 | $ | — | $ | 17.3 | |||||||
FAA air agency | 14.2 | — | 14.2 | 14.2 | — | 14.2 | |||||||||||||
certificates | |||||||||||||||||||
$ | 31.4 | $ | — | $ | 31.4 | $ | 31.5 | $ | — | $ | 31.5 | ||||||||
Total intangible assets | $ | 312.4 | $ | 93.3 | $ | 219.1 | $ | 300.1 | $ | 75.4 | $ | 224.7 | |||||||
Intangible assets acquired in 2013 were $5.9 million for the Standard Machine acquisition, $0.7 million for the Smith Services acquisition and $6.8 million for the Interlube acquisition. Intangible assets subject to amortization acquired in 2013 were assigned useful lives of two to 20 years and had a weighted-average amortization period of 18.4 years. Intangible assets acquired in 2012 were $7.7 million for the Wazee acquisition. Intangible assets subject to amortization acquired in 2012 were assigned useful lives of five to 20 years and had a weighted-average amortization period of 13.6 years. | |||||||||||||||||||
Amortization expense for intangible assets was $18.7 million, $19.0 million and $14.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. Amortization expense for intangible assets is estimated to be approximately: $18.5 million in 2014; $18.4 million in 2015; $18.0 million in 2016; $17.6 million in 2017; and $17.5 million in 2018. |
Financing_Arrangements
Financing Arrangements | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Financing Arrangements | ' | ||||||
Short-term debt for the years ended December 31 was as follows: | |||||||
2013 | 2012 | ||||||
Variable-rate lines of credit for certain of the Company’s foreign subsidiaries with | $ | 18.6 | $ | 14.3 | |||
various banks with interest rates ranging from 0.87% to 4.86% and 0.61% to | |||||||
2.28% at December 31, 2013 and 2012, respectively | |||||||
Short-term debt | $ | 18.6 | $ | 14.3 | |||
The lines of credit for certain of the Company’s foreign subsidiaries provide for borrowings up to $217.0 million. Most of these lines of credit are uncommitted. At December 31, 2013, the Company’s foreign subsidiaries had borrowings outstanding of $18.6 million and guarantees of $1.2 million, which reduced the availability under these facilities to $197.2 million. | |||||||
The weighted-average interest rate on short-term debt during the year was 3.2%, 3.2% and 4.1% in 2013, 2012 and 2011, respectively. The weighted-average interest rate on short-term debt outstanding at December 31, 2013 and 2012 was 4.6% and 1.5%, respectively. | |||||||
On November 30, 2012, the Company entered into a $200 million Asset Securitization Agreement, which matures on November 30, 2015. Under the terms of the Asset Securitization Agreement, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary that in turn uses the trade receivables to secure borrowings which are funded through a vehicle that issues commercial paper in the short-term market. Borrowings under the Asset Securitization Agreement are limited to certain borrowing base calculations. Any amounts outstanding under this Asset Securitization Agreement would be reported in short-term debt on the Company’s Consolidated Balance Sheets. As of December 31, 2013 and 2012, there were no outstanding borrowings under the Asset Securitization Agreement. However, certain borrowing base limitations reduced the availability of the Asset Securitization Agreement to $149.3 million at December 31, 2013. The cost of this facility, which is the commercial paper rate plus program fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The yield rate was 0.96%, 1.06% and 1.25%, at December 31, 2013, 2012 and 2011, respectively. | |||||||
Long-term debt for the years ended December 31 was as follows: | |||||||
2013 | 2012 | ||||||
Fixed-rate Medium-Term Notes, Series A, mature at various dates through | $ | 175 | $ | 175 | |||
May 2028, with interest rates ranging from 6.74% to 7.76% | |||||||
Fixed-rate Senior Unsecured Notes, maturing on September 15, 2014, with an | 249.9 | 249.9 | |||||
interest rate of 6.0% | |||||||
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, | 12.2 | 12.2 | |||||
maturing on November 1, 2025 (0.06% at December 31, 2013) | |||||||
Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, | 9.5 | 9.5 | |||||
maturing on November 1, 2025 (0.15% at December 31, 2013) | |||||||
Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing | 8.5 | 8.5 | |||||
on June 1, 2033 (0.15% at December 31, 2013) | |||||||
Other | 2.2 | 9.6 | |||||
Total debt | $ | 457.3 | $ | 464.7 | |||
Less current maturities | 250.7 | 9.6 | |||||
Long-term debt | $ | 206.6 | $ | 455.1 | |||
The Company has a $500 million Senior Credit Facility, which matures on May 11, 2016. At December 31, 2013, the Company had no outstanding borrowings under the Senior Credit Facility, but had letters of credit outstanding totaling $8.6 million, which reduced the availability under the Senior Credit Facility to $491.4 million. Under the Senior Credit Facility, the Company has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At December 31, 2013, the Company was in full compliance with the covenants under the Senior Credit Facility. | |||||||
In 2011, the Company was notified that its variable-rate State of Ohio Pollution Control Revenue Refunding Bonds (the Bonds), maturing on June 1, 2033, had lost their tax-exempt status and would now be taxable to its bondholders. As part of the settlement with the IRS, the Company redeemed half of the balance during the third quarter of 2012 and agreed to redeem the remaining balance of $8.5 million on December 31, 2022. In addition, the IRS agreed to allow the Bonds to remain tax-exempt during the period they are outstanding. | |||||||
The maturities of long-term debt for the five years subsequent to December 31, 2013 are as follows: 2014 – $250.7 million; 2015 – $0.7 million; 2016 – $15.7 million; 2017 – $5.0 million; and 2018 – zero. | |||||||
Interest paid was $31.0 million in 2013, $32.4 million in 2012 and $34.8 million in 2011. This differs from interest expense due to the timing of payments and interest capitalized of $12.7 million in 2013, $4.9 million in 2012 and $1.2 million in 2011. | |||||||
The Company and its subsidiaries lease a variety of real property and equipment. Rent expense under operating leases amounted to $44.4 million, $43.6 million and $44.5 million in 2013, 2012 and 2011, respectively. At December 31, 2013, future minimum lease payments for noncancelable operating leases totaled $125.7 million and are payable as follows: 2014–$37.9 million; 2015–$30.7 million; 2016–$21.8 million; 2017–$13.8 million; 2018-$8.9 million and $12.6 million thereafter. |
Contingencies
Contingencies | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Contingencies | ' | ||||||
The Company and certain of its subsidiaries have been identified as potentially responsible parties for investigation and remediation under the Comprehensive Environmental Response, Compensation and Liability Act (Superfund) or similar state laws with respect to certain sites. Claims for investigation and remediation have been asserted against numerous other entities, which are believed to be financially solvent and are expected to fulfill their proportionate share of the obligation. | |||||||
The Company had an accrual of $2.6 million and $7.5 million for environmental matters that are probable and reasonably estimable as of December 31, 2013 and 2012, respectively. This accrual is recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties. Of the 2013 accrual, $1.2 million is included in the rollforward of the restructuring accrual as of December 31, 2013, discussed further in Note 10 – Impairment and Restructuring Charges. | |||||||
In addition, the Company is subject to various lawsuits, claims and proceedings, which arise in the ordinary course of its business. The Company accrues costs associated with legal and non-income tax matters when they become probable and reasonably estimable. Accruals are established based on the estimated undiscounted cash flows to settle the obligations and are not reduced by any potential recoveries from insurance or other indemnification claims. Management believes that any ultimate liability with respect to these actions, in excess of amounts provided, will not materially affect the Company’s Consolidated Financial Statements. | |||||||
Product Warranties: | |||||||
In addition to the contingencies above, the Company provides limited warranties on certain of its products. The following is a rollforward of the warranty reserves for 2013 and 2012: | |||||||
2013 | 2012 | ||||||
Beginning balance, January 1 | $ | 4.3 | $ | 11.7 | |||
Expense (Income) | 4.8 | (0.9 | ) | ||||
Payments | (4.8 | ) | (6.5 | ) | |||
Ending balance, December 31 | $ | 4.3 | $ | 4.3 | |||
The product warranty accrual for 2013 and 2012 was included in other current liabilities on the Consolidated Balance Sheets. |
Impairment_and_Restructuring_C
Impairment and Restructuring Charges | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Impairment and Restructuring Charges | ' | |||||||||||||||
Impairment and restructuring charges by segment were as follows: | ||||||||||||||||
Year ended December 31, 2013: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | — | $ | 0.1 | $ | — | $ | 0.6 | $ | 0.7 | ||||||
Severance expense and related benefit costs | 12.5 | 2.6 | 1.2 | — | 16.3 | |||||||||||
Exit costs | (1.5 | ) | 0.9 | — | — | (0.6 | ) | |||||||||
Total | $ | 11 | $ | 3.6 | $ | 1.2 | $ | 0.6 | $ | 16.4 | ||||||
Year ended December 31, 2012: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | 6.5 | $ | 0.1 | $ | — | $ | — | $ | 6.6 | ||||||
Severance expense and related benefit costs | 16.8 | 1.6 | — | — | 18.4 | |||||||||||
Exit costs | 4.2 | 0.3 | — | — | 4.5 | |||||||||||
Total | $ | 27.5 | $ | 2 | $ | — | $ | — | $ | 29.5 | ||||||
Year ended December 31, 2011: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | 0.2 | $ | 0.3 | $ | — | $ | — | $ | 0.5 | ||||||
Severance expense and related benefit costs | 0.2 | (0.1 | ) | — | 0.1 | |||||||||||
Exit costs | 13 | 0.3 | 0.5 | — | 13.8 | |||||||||||
Total | $ | 13.4 | $ | 0.5 | $ | 0.5 | $ | — | $ | 14.4 | ||||||
The following discussion explains the major impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above. | ||||||||||||||||
Mobile Industries: | ||||||||||||||||
In May 2012, the Company announced the closure of its manufacturing facility in St. Thomas, which was expected to be completed in approximately one year, and was intended to consolidate bearing production from this plant with existing U.S. operations to better align the Company's manufacturing footprint and customer base. In connection with this closure, the Company also moved customer service for the Canadian market to its offices in Toronto. The Company completed the closure of this manufacturing facility on March 31, 2013. The closure of the St. Thomas manufacturing facility displaced 190 employees. The Company expects to incur pretax costs of approximately $55 million to $65 million in connection with this closure, of which approximately $20 million to $25 million is expected to be pretax cash costs. | ||||||||||||||||
The Company has incurred pretax costs related to this closure of approximately $41.6 million as of December 31, 2013, including rationalization costs recorded in cost of products sold. During 2013, the Company recorded $8.2 million of severance and related benefits, including pension settlement charges of $7.1 million, related to this closure. During 2012, the Company recorded $16.9 million of severance and related benefits, including a curtailment of pension benefits of $10.7 million, and impairment charges of $6.5 million, related to this closure. | ||||||||||||||||
In March 2007, the Company announced the closure of its manufacturing facility in Sao Paulo. The Company completed the closure of this manufacturing facility on March 31, 2010. Mobile Industries has incurred cumulative pretax expenses of approximately $54.9 million as of December 31, 2013 related to this closure. In 2013, 2012 and 2011, the Company recorded a favorable adjustment of $2.0 million, and exit costs of $6.8 million and $12.5 million, respectively, associated with the closure of this facility. The favorable adjustment for 2013 and exit costs for 2012 primarily related to environmental remediation costs. Exit costs in 2011 also included workers' compensation claims for former employees. The Company accrues environmental remediation costs and workers’ compensation claims when they are probable and reasonably estimable. | ||||||||||||||||
In addition to the above charges, the Company recorded a favorable adjustment of $2.7 million during 2012 for environmental exit costs at the site of its former plant in Columbus, Ohio. The favorable adjustment was a result of the sale of the real estate at the site of this former plant during the first quarter of 2012. The buyer assumed responsibility for the environmental remediation as a result of the sale. The buyer was able to obtain funding from the State of Ohio to remediate the site. | ||||||||||||||||
Workforce Reductions: | ||||||||||||||||
In 2013, the Company began the realignment of its organization to improve efficiency and reduce costs. During 2013, the Company recognized $5.9 million of severance and related benefit costs to eliminate approximately 180 positions. Of the $5.9 million charge for 2013, $1.2 million related to the Aerospace segment, $2.5 million related to the Process Industries segment and $2.2 million related to the Mobile Industries segment | ||||||||||||||||
Consolidated Restructuring Accrual: | ||||||||||||||||
The following is a rollforward of the consolidated restructuring accrual for the years ended December 31: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning balance, January 1 | $ | 17.6 | $ | 21.8 | ||||||||||||
Expense | 8.7 | 12.2 | ||||||||||||||
Payments | (15.5 | ) | (16.4 | ) | ||||||||||||
Ending balance, December 31 | $ | 10.8 | $ | 17.6 | ||||||||||||
The restructuring accrual at December 31, 2013 and 2012 was included in other current liabilities on the Consolidated Balance Sheets. The restructuring accrual at December 31, 2012 excluded costs related to the curtailment of pension benefit plans of $10.7 million. At December 31, 2013, the restructuring accrual included $1.2 million of environmental remediation costs. The Company adjusts environmental remediation accruals based on the best available estimate of costs to be incurred, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties. | ||||||||||||||||
Separation costs for the year ended December 31 were as follows: | ||||||||||||||||
2013 | ||||||||||||||||
Severance expense and related benefit costs | $ | 5.6 | ||||||||||||||
Professional fees | 7.3 | |||||||||||||||
Exit costs | 0.1 | |||||||||||||||
Total | $ | 13 | ||||||||||||||
On September 5, 2013, the Company announced that its Board of Directors had approved a plan to pursue a separation of its steel business from the rest of the Company through a spinoff, creating a new independent, publicly traded steel company, TimkenSteel Corporation. The transaction is expected to be tax-free to shareholders and should be completed in mid-year 2014, subject to customary regulatory approvals, the receipt of a legal opinion regarding the tax-free nature of the transaction, the execution of intercompany agreements between the Company and the new steel company, final approval of the Company's Board of Directors and other customary matters. One-time transaction costs in connection with the separation of the two companies are expected to be approximately $105 million. The majority of these costs include consulting and professional fees associated with preparing for the spinoff. In addition, these costs include a cost reduction initiative to eliminate corporate positions to mitigate the incremental enterprise costs with operating two separate companies. The expected cost of this cost reduction initiative is expected to be approximately $15 million. | ||||||||||||||||
In the fourth quarter of 2013, the Company recorded $5.6 million of severance and related benefit costs related to the cost reduction initiative. The Company also recorded $7.3 million of professional fees related to the planned spinoff of the steel business. | ||||||||||||||||
The following is a rollforward of the consolidated separation accrual for the year ended December 31: | ||||||||||||||||
2013 | ||||||||||||||||
Beginning balance, January 1 | $ | — | ||||||||||||||
Expense | 13 | |||||||||||||||
Payments | (7.3 | ) | ||||||||||||||
Ending balance, December 31 | $ | 5.7 | ||||||||||||||
The separation accrual at December 31, 2013 was included in other current liabilities on the Consolidated Balance Sheets. At December 31, 2013, accrued separation costs included $3.8 million related to severance and related benefit costs and $1.9 million related to professional fees. The professional fees are recorded when incurred. |
Separation_Costs_Notes
Separation Costs (Notes) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Separation Costs | ' | |||||||||||||||
Impairment and restructuring charges by segment were as follows: | ||||||||||||||||
Year ended December 31, 2013: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | — | $ | 0.1 | $ | — | $ | 0.6 | $ | 0.7 | ||||||
Severance expense and related benefit costs | 12.5 | 2.6 | 1.2 | — | 16.3 | |||||||||||
Exit costs | (1.5 | ) | 0.9 | — | — | (0.6 | ) | |||||||||
Total | $ | 11 | $ | 3.6 | $ | 1.2 | $ | 0.6 | $ | 16.4 | ||||||
Year ended December 31, 2012: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | 6.5 | $ | 0.1 | $ | — | $ | — | $ | 6.6 | ||||||
Severance expense and related benefit costs | 16.8 | 1.6 | — | — | 18.4 | |||||||||||
Exit costs | 4.2 | 0.3 | — | — | 4.5 | |||||||||||
Total | $ | 27.5 | $ | 2 | $ | — | $ | — | $ | 29.5 | ||||||
Year ended December 31, 2011: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | 0.2 | $ | 0.3 | $ | — | $ | — | $ | 0.5 | ||||||
Severance expense and related benefit costs | 0.2 | (0.1 | ) | — | 0.1 | |||||||||||
Exit costs | 13 | 0.3 | 0.5 | — | 13.8 | |||||||||||
Total | $ | 13.4 | $ | 0.5 | $ | 0.5 | $ | — | $ | 14.4 | ||||||
The following discussion explains the major impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above. | ||||||||||||||||
Mobile Industries: | ||||||||||||||||
In May 2012, the Company announced the closure of its manufacturing facility in St. Thomas, which was expected to be completed in approximately one year, and was intended to consolidate bearing production from this plant with existing U.S. operations to better align the Company's manufacturing footprint and customer base. In connection with this closure, the Company also moved customer service for the Canadian market to its offices in Toronto. The Company completed the closure of this manufacturing facility on March 31, 2013. The closure of the St. Thomas manufacturing facility displaced 190 employees. The Company expects to incur pretax costs of approximately $55 million to $65 million in connection with this closure, of which approximately $20 million to $25 million is expected to be pretax cash costs. | ||||||||||||||||
The Company has incurred pretax costs related to this closure of approximately $41.6 million as of December 31, 2013, including rationalization costs recorded in cost of products sold. During 2013, the Company recorded $8.2 million of severance and related benefits, including pension settlement charges of $7.1 million, related to this closure. During 2012, the Company recorded $16.9 million of severance and related benefits, including a curtailment of pension benefits of $10.7 million, and impairment charges of $6.5 million, related to this closure. | ||||||||||||||||
In March 2007, the Company announced the closure of its manufacturing facility in Sao Paulo. The Company completed the closure of this manufacturing facility on March 31, 2010. Mobile Industries has incurred cumulative pretax expenses of approximately $54.9 million as of December 31, 2013 related to this closure. In 2013, 2012 and 2011, the Company recorded a favorable adjustment of $2.0 million, and exit costs of $6.8 million and $12.5 million, respectively, associated with the closure of this facility. The favorable adjustment for 2013 and exit costs for 2012 primarily related to environmental remediation costs. Exit costs in 2011 also included workers' compensation claims for former employees. The Company accrues environmental remediation costs and workers’ compensation claims when they are probable and reasonably estimable. | ||||||||||||||||
In addition to the above charges, the Company recorded a favorable adjustment of $2.7 million during 2012 for environmental exit costs at the site of its former plant in Columbus, Ohio. The favorable adjustment was a result of the sale of the real estate at the site of this former plant during the first quarter of 2012. The buyer assumed responsibility for the environmental remediation as a result of the sale. The buyer was able to obtain funding from the State of Ohio to remediate the site. | ||||||||||||||||
Workforce Reductions: | ||||||||||||||||
In 2013, the Company began the realignment of its organization to improve efficiency and reduce costs. During 2013, the Company recognized $5.9 million of severance and related benefit costs to eliminate approximately 180 positions. Of the $5.9 million charge for 2013, $1.2 million related to the Aerospace segment, $2.5 million related to the Process Industries segment and $2.2 million related to the Mobile Industries segment | ||||||||||||||||
Consolidated Restructuring Accrual: | ||||||||||||||||
The following is a rollforward of the consolidated restructuring accrual for the years ended December 31: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning balance, January 1 | $ | 17.6 | $ | 21.8 | ||||||||||||
Expense | 8.7 | 12.2 | ||||||||||||||
Payments | (15.5 | ) | (16.4 | ) | ||||||||||||
Ending balance, December 31 | $ | 10.8 | $ | 17.6 | ||||||||||||
The restructuring accrual at December 31, 2013 and 2012 was included in other current liabilities on the Consolidated Balance Sheets. The restructuring accrual at December 31, 2012 excluded costs related to the curtailment of pension benefit plans of $10.7 million. At December 31, 2013, the restructuring accrual included $1.2 million of environmental remediation costs. The Company adjusts environmental remediation accruals based on the best available estimate of costs to be incurred, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties. | ||||||||||||||||
Separation costs for the year ended December 31 were as follows: | ||||||||||||||||
2013 | ||||||||||||||||
Severance expense and related benefit costs | $ | 5.6 | ||||||||||||||
Professional fees | 7.3 | |||||||||||||||
Exit costs | 0.1 | |||||||||||||||
Total | $ | 13 | ||||||||||||||
On September 5, 2013, the Company announced that its Board of Directors had approved a plan to pursue a separation of its steel business from the rest of the Company through a spinoff, creating a new independent, publicly traded steel company, TimkenSteel Corporation. The transaction is expected to be tax-free to shareholders and should be completed in mid-year 2014, subject to customary regulatory approvals, the receipt of a legal opinion regarding the tax-free nature of the transaction, the execution of intercompany agreements between the Company and the new steel company, final approval of the Company's Board of Directors and other customary matters. One-time transaction costs in connection with the separation of the two companies are expected to be approximately $105 million. The majority of these costs include consulting and professional fees associated with preparing for the spinoff. In addition, these costs include a cost reduction initiative to eliminate corporate positions to mitigate the incremental enterprise costs with operating two separate companies. The expected cost of this cost reduction initiative is expected to be approximately $15 million. | ||||||||||||||||
In the fourth quarter of 2013, the Company recorded $5.6 million of severance and related benefit costs related to the cost reduction initiative. The Company also recorded $7.3 million of professional fees related to the planned spinoff of the steel business. | ||||||||||||||||
The following is a rollforward of the consolidated separation accrual for the year ended December 31: | ||||||||||||||||
2013 | ||||||||||||||||
Beginning balance, January 1 | $ | — | ||||||||||||||
Expense | 13 | |||||||||||||||
Payments | (7.3 | ) | ||||||||||||||
Ending balance, December 31 | $ | 5.7 | ||||||||||||||
The separation accrual at December 31, 2013 was included in other current liabilities on the Consolidated Balance Sheets. At December 31, 2013, accrued separation costs included $3.8 million related to severance and related benefit costs and $1.9 million related to professional fees. The professional fees are recorded when incurred. |
Stock_Compensation_Plans
Stock Compensation Plans | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||
Stock Compensation Plans | ' | |||||||||
Under the Company’s long-term incentive plan, the Company’s common shares have been made available to grant, at the discretion of the Compensation Committee of the Board of Directors, to officers and key employees in the form of stock option awards. Stock option awards typically have a ten-year term and generally vest in 25% increments annually beginning on the first anniversary of the date of grant. In addition to stock option awards, the Company has granted restricted shares under the long-term incentive plan. Restricted shares typically vest in 25% increments annually beginning on the first year anniversary of the date of grant and are expensed over the vesting period. | ||||||||||
During 2013, 2012 and 2011, the Company recognized stock-based compensation expense of $12.1 million ($7.6 million after tax or $0.08 per diluted share), $10.8 million ($6.8 million after tax or $0.07 per diluted share) and $9.4 million ($5.9 million after tax or $0.06 per diluted share), respectively, for stock option awards. | ||||||||||
The fair value of stock option awards granted during 2013, 2012 and 2011 was estimated at the date of grant using a Black-Scholes option-pricing method with the following assumptions: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Weighted-average fair value per option | $ | 21.17 | $ | 20.16 | $ | 19.93 | ||||
Risk-free interest rate | 1.09 | % | 1.15 | % | 2.76 | % | ||||
Dividend yield | 2.29 | % | 1.94 | % | 2 | % | ||||
Expected stock volatility | 50.66 | % | 50 | % | 48.1 | % | ||||
Expected life - years | 6 | 6 | 6 | |||||||
Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and the expected lives of the options. The dividend yield was calculated based upon the last dividend prior to the grant compared to the trailing 12 months’ daily stock prices. The risk-free interest rate was based upon yields of U.S. zero coupon issues with a term equal to the expected life of the option being valued. Forfeitures were estimated at 4%. | ||||||||||
A summary of option activity for the year ended December 31, 2013 is presented below: | ||||||||||
Number of | Weighted-average | Weighted-average | Aggregate Intrinsic Value | |||||||
Shares | Exercise Price | Remaining | (millions) | |||||||
Contractual Term | ||||||||||
Outstanding - beginning of year | 3,717,340 | $ | 33.59 | |||||||
Granted | 614,480 | 56.27 | ||||||||
Exercised | (928,803 | ) | 23.09 | |||||||
Canceled or expired | (18,330 | ) | 49.86 | |||||||
Outstanding - end of year | 3,384,687 | $ | 40.5 | 7 years | $ | 49.5 | ||||
Options expected to vest | 2,740,589 | $ | 36.93 | 6 years | $ | 49 | ||||
Options exercisable | 1,711,482 | $ | 32.94 | 5 years | $ | 37.9 | ||||
The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $25.2 million, $28.2 million and $26.0 million, respectively. Net cash proceeds from the exercise of stock options were $13.1 million, $13.8 million and $16.6 million, respectively. Income tax benefits were $8.9 million, $8.1 million and $7.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||
In 2013, the Company issued 260,740 strategic performance shares and 121,080 strategic shares to officers and key employees. Strategic performance shares are performance-based restricted stock units that vest based on achievement of specified performance objectives and cliff-vest after three years. Strategic performance shares settle in either cash or shares, with 243,580 shares expected to settle in cash and 17,160 expected to settle in shares. Strategic shares are timed-based restricted stock units and generally vest in 25% increments annually beginning on the first anniversary of the date of grant. Strategic shares also settle in either cash or shares, with 65,400 strategic shares expected to settle in cash and 55,680 strategic shares expected to settle in common shares. For shares that are expected to settle in cash, the Company accrued $6.2 million in 2013, which was included in other non-current liabilities on the Consolidated Balance Sheets. | ||||||||||
A summary of restricted share activity, including restricted shares, deferred shares, strategic performance shares that will settle in common shares and strategic shares that will settle in common shares, for the year ended December 31, 2013 is as follows: | ||||||||||
Number of Shares | Weighted-average | |||||||||
Grant Date Fair Value | ||||||||||
Outstanding - beginning of year | 524,064 | $ | 36.23 | |||||||
Granted | 111,640 | 55.95 | ||||||||
Vested | (221,542 | ) | 32.16 | |||||||
Canceled or expired | (17,110 | ) | 47.24 | |||||||
Outstanding - end of year | 397,052 | $ | 43.57 | |||||||
As of December 31, 2013, a total of 397,052 restricted shares have been awarded that have not yet vested. The Company distributed 221,542, 249,569 and 302,924 shares in 2013, 2012 and 2011, respectively, due to the vesting of these awards. The shares awarded in 2013, 2012 and 2011 totaled 111,640, 161,905 and 246,890, respectively. The Company recognized compensation expense of $6.5 million, $7.2 million and $7.5 million, for the years ended December 31, 2013, 2012 and 2011, respectively, relating to restricted shares. | ||||||||||
As of December 31, 2013, the Company had unrecognized compensation expense of $28.1 million related to stock option awards and restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted-average period of two years. The number of shares available for future grants for all plans at December 31, 2013 was 7,562,958. | ||||||||||
The Company offers to certain employees a performance unit component under its long-term incentive plan in which awards are earned based on Company performance measured by two metrics over a three-year performance period. The Compensation Committee of the Board of Directors can elect to make payments that become due in the form of cash or the Company’s common shares. A total of 34,756 performance units were granted in 2011. Performance units granted, if fully earned, would represent 156,183 of the Company’s common shares at December 31, 2012. Since the inception of the plan, 160,668 performance units were canceled. Each performance unit has a cash value of $100. |
Retirement_Benefit_Plans
Retirement Benefit Plans (Pension Plan, Defined Benefit [Member]) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Pension Plan, Defined Benefit [Member] | ' | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||
Retirement Benefit Plans | ' | ||||||||||||
The Company and its subsidiaries sponsor a number of defined benefit pension plans, which cover eligible employees, including certain employees in foreign countries. These plans are generally noncontributory. Pension benefits earned are generally based on years of service and compensation during active employment. The cash contributions for the Company’s defined benefit pension plans were $120.7 million and $325.8 million in 2013 and 2012, respectively. | |||||||||||||
The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 38.5 | $ | 34.7 | $ | 32.2 | |||||||
Interest cost | 134.7 | 151.1 | 158.6 | ||||||||||
Expected return on plan assets | (232.0 | ) | (221.1 | ) | (214.9 | ) | |||||||
Amortization of prior service cost | 4.5 | 9.3 | 9.4 | ||||||||||
Amortization of net actuarial loss | 116.8 | 83.3 | 56 | ||||||||||
Pension curtailments and settlements | 7.2 | 11.6 | — | ||||||||||
Net periodic benefit cost | $ | 69.7 | $ | 68.9 | $ | 41.3 | |||||||
Assumptions | 2013 | 2012 | 2011 | ||||||||||
U.S. Plans: | |||||||||||||
Discount rate | 4 | % | 5 | % | 5.75 | % | |||||||
Future compensation assumption | 2.00% to 3.00% | 2.00% to 3.00% | 2.00% to 3.00% | ||||||||||
Expected long-term return on plan assets | 8 | % | 8.25 | % | 8.5 | % | |||||||
International Plans: | |||||||||||||
Discount rate | 2.75% to 9.0% | 4.75% to 9.50% | 4.75% to 9.00% | ||||||||||
Future compensation assumption | 2.30% to 8.00% | 2.5% to 8.00% | 2.50% to 8.84% | ||||||||||
Expected long-term return on plan assets | 3.25% to 8.50% | 3.25% to 9.00% | 3.50% to 9.00% | ||||||||||
The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. | |||||||||||||
For expense purposes in 2013, the Company applied a discount rate of 4.00% to its U.S. defined benefit pension plans. For expense purposes in 2014, the Company will apply a discount rate of 5.02% to its U.S. defined benefit pension plans. A 0.25 percentage point decrease in the discount rate would increase pension expense by approximately $5.3 million for 2014. | |||||||||||||
For expense purposes in 2013, the Company applied an expected rate of return of 8.00% for the Company’s U.S. pension plan assets. For expense purposes in 2014, the Company will apply an expected rate of return on plan assets of 7.25%. A 0.25 percentage point reduction in the expected rate of return would increase pension expense by approximately $6.6 million for 2014. | |||||||||||||
The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2013 and 2012: | |||||||||||||
2013 | 2012 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 3,496.30 | $ | 3,124.60 | |||||||||
Service cost | 38.5 | 34.7 | |||||||||||
Interest cost | 134.7 | 151.1 | |||||||||||
Amendments | — | (0.3 | ) | ||||||||||
Actuarial (gains) losses | (274.4 | ) | 394.1 | ||||||||||
Employee contributions | 0.2 | 0.2 | |||||||||||
International plan exchange rate change | 5.3 | 18.2 | |||||||||||
Curtailment loss | — | 9.5 | |||||||||||
Benefits paid | (267.1 | ) | (235.8 | ) | |||||||||
Benefit obligation at end of year | $ | 3,133.50 | $ | 3,496.30 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 3,098.40 | $ | 2,631.90 | |||||||||
Actual return on plan assets | 334 | 361.7 | |||||||||||
Employee contributions | 0.2 | 0.2 | |||||||||||
Company contributions / payments | 120.7 | 325.8 | |||||||||||
International plan exchange rate change | 4.4 | 14.6 | |||||||||||
Benefits paid | (267.1 | ) | (235.8 | ) | |||||||||
Fair value of plan assets at end of year | 3,290.60 | 3,098.40 | |||||||||||
Funded status at end of year | $ | 157.1 | $ | (397.9 | ) | ||||||||
Amounts recognized on the Consolidated Balance Sheets: | |||||||||||||
Non-current assets | $ | 342.6 | $ | 0.3 | |||||||||
Current liabilities | (6.5 | ) | (6.8 | ) | |||||||||
Non-current liabilities | (179.0 | ) | (391.4 | ) | |||||||||
$ | 157.1 | $ | (397.9 | ) | |||||||||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||
Net actuarial loss | $ | 989.1 | $ | 1,489.40 | |||||||||
Net prior service cost | 19 | 23.5 | |||||||||||
Accumulated other comprehensive loss | $ | 1,008.10 | $ | 1,512.90 | |||||||||
Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss (AOCL): | 2013 | 2012 | |||||||||||
AOCI at beginning of year | $ | 1,512.90 | $ | 1,348.20 | |||||||||
Net actuarial (gain) loss | (376.3 | ) | 263.1 | ||||||||||
Prior service cost | — | (0.3 | ) | ||||||||||
Recognized net actuarial loss | (116.8 | ) | (83.3 | ) | |||||||||
Recognized prior service cost | (4.5 | ) | (9.3 | ) | |||||||||
Loss recognized due to curtailment | (7.2 | ) | (11.6 | ) | |||||||||
Foreign currency impact | — | 6.1 | |||||||||||
Total recognized in accumulated other comprehensive loss at December 31 | $ | 1,008.10 | $ | 1,512.90 | |||||||||
The presentation in the above tables for amounts recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets is before the effect of income taxes. | |||||||||||||
The following table summarizes assumptions used to measure the benefit obligation for the defined benefit pension plans at December 31: | |||||||||||||
Assumptions | 2013 | 2012 | |||||||||||
U.S. Plans: | |||||||||||||
Discount rate | 5.02 | % | 4 | % | |||||||||
Future compensation assumption | 2.00% to 3.00% | 2.00% to 3.00% | |||||||||||
International Plans: | |||||||||||||
Discount rate | 3.25% to 9.75% | 2.75% to 9.5% | |||||||||||
Future compensation assumption | 2.30% to 8.00% | 2.3% to 8.0% | |||||||||||
Defined benefit pension plans in the United States represent 84% of the benefit obligation and 87% of the fair value of plan assets as of December 31, 2013. | |||||||||||||
Certain of the Company’s defined benefit pension plans were overfunded as of December 31, 2013. As a result, $342.6 million and $0.2 million at December 31, 2013 and 2012, respectively, are included in non-current pension assets on the Consolidated Balance Sheets. The current portion of accrued pension cost, which is included in salaries, wages and benefits on the Consolidated Balance Sheets, was $6.5 million and $6.7 million at December 31, 2013 and 2012, respectively. In 2013, the current portion of accrued pension cost relates to unfunded plans and represents the actuarial present value of expected payments related to the plans to be made over the next 12 months. | |||||||||||||
The accumulated benefit obligation at December 31, 2013 exceeded the market value of plan assets for several of the Company’s pension plans. For these plans, the projected benefit obligation was $600.6 million, the accumulated benefit obligation was $585.8 million and the fair value of plan assets was $415.6 million at December 31, 2013. | |||||||||||||
The total pension accumulated benefit obligation for all plans was $3.0 billion and $3.4 billion at December 31, 2013 and 2012, respectively. | |||||||||||||
Due to significant increases in global capital markets in 2013, investment performance increased the value of the Company’s pension assets by 10.8%. | |||||||||||||
As of December 31, 2013 and 2012, the Company’s defined benefit pension plans did not directly hold any of the Company’s common shares. | |||||||||||||
The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $71.0 million and $3.9 million, respectively. | |||||||||||||
Plan Assets: | |||||||||||||
The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2013 and 2012, was as follows: | |||||||||||||
Current Target | Percentage of Pension Plan | ||||||||||||
Allocation | Assets at December 31, | ||||||||||||
Asset Category | 2013 | 2012 | |||||||||||
Equity securities | 35% | to | 52% | 43% | 47% | ||||||||
Debt securities | 35% | to | 50% | 45% | 40% | ||||||||
Other | 9% | to | 19% | 12% | 13% | ||||||||
Total | 100% | 100% | |||||||||||
The Company recognizes its overall responsibility to ensure that the assets of its various defined benefit pension plans are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. Preservation of capital is important; however, the Company also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the pension funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. | |||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy: | |||||||||||||
Level 1 - | Unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 - | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. | ||||||||||||
Level 3 - | Unobservable inputs for the asset or liability. | ||||||||||||
The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 364 | $ | 3.3 | $ | 360.7 | $ | — | |||||
Government and agency securities | 188.4 | 175 | 13.4 | — | |||||||||
Corporate bonds - investment grade | 301.1 | — | 301.1 | — | |||||||||
Corporate bonds - non-investment grade | 110.1 | — | 110.1 | — | |||||||||
Equity securities - U.S. companies | 300.6 | 299.2 | 1.4 | — | |||||||||
Equity securities - international companies | 311.5 | 311.5 | — | — | |||||||||
Asset backed securities | 38.2 | — | 38.2 | — | |||||||||
Common collective funds - domestic equities | 195.6 | — | 195.6 | — | |||||||||
Common collective funds - international equities | 387.5 | — | 387.5 | — | |||||||||
Common collective funds - fixed income | 625.4 | — | 625.4 | — | |||||||||
Common collective funds - other | 87.2 | — | 87.2 | — | |||||||||
Limited partnerships | 78.8 | — | — | 78.8 | |||||||||
Real estate partnerships | 145.6 | — | 124.5 | 21.1 | |||||||||
Mutual funds - real estate | 155.9 | 155.9 | — | — | |||||||||
Other assets | 0.7 | — | 0.7 | — | |||||||||
Total Assets | $ | 3,290.60 | $ | 944.9 | $ | 2,245.80 | $ | 99.9 | |||||
The table below sets forth a summary of changes in the fair value of the level 3 assets by fund for the year ended December 31, 2013: | |||||||||||||
Limited Partnerships | Real Estate | Total | |||||||||||
Beginning balance, January 1 | $ | 79.9 | $ | 16.3 | $ | 96.2 | |||||||
Purchases | 5.3 | 3.5 | 8.8 | ||||||||||
Sales | (11.5 | ) | (0.6 | ) | (12.1 | ) | |||||||
Realized losses | (6.2 | ) | (0.1 | ) | (6.3 | ) | |||||||
Unrealized gains | 11.3 | 2 | 13.3 | ||||||||||
Ending balance, December 31 | $ | 78.8 | $ | 21.1 | $ | 99.9 | |||||||
The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 80 | $ | 3.1 | $ | 76.9 | $ | — | |||||
Government and agency securities | 226.2 | 193.9 | 32.3 | — | |||||||||
Corporate bonds - investment grade | 263.7 | — | 263.7 | — | |||||||||
Corporate bonds - non-investment grade | 103.9 | — | 103.9 | — | |||||||||
Equity securities - U.S. companies | 347.6 | 347.2 | 0.4 | — | |||||||||
Equity securities - international companies | 273.6 | 273.6 | — | — | |||||||||
Asset backed securities | 55.4 | — | 55.4 | — | |||||||||
Common collective funds - domestic equities | 350.1 | — | 350.1 | — | |||||||||
Common collective funds - international equities | 365.3 | — | 365.3 | — | |||||||||
Common collective funds - fixed income | 620.1 | — | 620.1 | — | |||||||||
Common collective funds - other | 39.7 | — | 39.7 | — | |||||||||
Limited partnerships | 79.9 | — | — | 79.9 | |||||||||
Real estate partnerships | 128.6 | — | 112.3 | 16.3 | |||||||||
Mutual funds - real estate | 163.6 | 163.6 | — | — | |||||||||
Other assets | 0.7 | — | 0.7 | — | |||||||||
Total Assets | $ | 3,098.40 | $ | 981.4 | $ | 2,020.80 | $ | 96.2 | |||||
The table below sets forth a summary of changes in the fair value of the level 3 assets by fund for the year ended December 31, 2012: | |||||||||||||
Limited Partnerships | Real Estate | Total | |||||||||||
Beginning balance, January 1 | $ | 83.6 | $ | 6.6 | $ | 90.2 | |||||||
Purchases | 7.1 | 11.3 | 18.4 | ||||||||||
Sales | (8.5 | ) | (1.5 | ) | (10.0 | ) | |||||||
Realized losses | (3.4 | ) | — | (3.4 | ) | ||||||||
Unrealized gains (losses) | 1.1 | (0.1 | ) | 1 | |||||||||
Ending balance, December 31 | $ | 79.9 | $ | 16.3 | $ | 96.2 | |||||||
Cash and cash equivalents are valued at redemption value. Government and agency securities are valued at the closing price reported in the active market in which the individual securities are traded. Certain corporate bonds are valued at the closing price reported in the active market in which the bond is traded. Equity securities (both common and preferred stock) are valued at the closing price reported in the active market in which the individual security is traded. Common collective funds are valued based on a net asset value per share. Asset-backed securities are valued based on quoted prices for similar assets in active markets. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security. | |||||||||||||
Limited partnerships include investments in funds that invest primarily in private equity, venture capital and distressed debt. Limited partnerships are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value, per the underlying investment fund, which is based upon the general partner's own assumptions about the assumptions a market participant would use in pricing the assets and liabilities of the partnership. Real estate investments include funds that invest in companies that primarily invest in commercial and residential properties, commercial mortgage-backed securities, debt and equity securities of real estate operating companies, and real estate investment trusts. Mutual funds – real estate are valued based on the closing price reported in the active market in which the individual security is traded. Other real estate investments are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value per the underlying investment fund, which is based on appraised values and current transaction prices. | |||||||||||||
Cash Flows: | |||||||||||||
Employer Contributions to Defined Benefit Plans | |||||||||||||
2012 | $ | 325.8 | |||||||||||
2013 | 120.7 | ||||||||||||
2014 (planned) | 20 | ||||||||||||
Future benefit payments are expected to be as follows: | |||||||||||||
Benefit Payments | |||||||||||||
2014 | $ | 233.4 | |||||||||||
2015 | 253.9 | ||||||||||||
2016 | 223.7 | ||||||||||||
2017 | 224 | ||||||||||||
2018 | 231.9 | ||||||||||||
2019-2023 | 1,094.40 | ||||||||||||
Employee Savings Plans: | |||||||||||||
The Company sponsors defined contribution retirement and savings plans covering substantially all employees in the United States and employees at certain non-U.S. locations. The Company has contributed Timken common shares to certain of these plans based on formulas established in the respective plan agreements. At December 31, 2013, the plans held 5,701,671 of the Company’s common shares with a fair value of $314.0 million. Company contributions to the plans, including performance sharing, were $28.5 million in 2013, $24.9 million in 2012 and $26.4 million in 2011. The Company paid dividends totaling $5.5 million in 2013, $6.3 million in 2012 and $5.7 million in 2011 to plans holding the Company’s common shares. |
Postretirement_Benefit_Plans
Postretirement Benefit Plans (Postretirement Benefit Plans [Member]) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Postretirement Benefit Plans [Member] | ' | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||
Postretirement Benefit Plans | ' | ||||||||||||
The Company and its subsidiaries sponsor several funded and unfunded postretirement plans that provide health care and life insurance benefits for eligible retirees and dependents. Depending on retirement date and employee classification, certain health care plans contain contribution and cost-sharing features such as deductibles, coinsurance and limitations on employer-provided subsidies. The remaining health care and life insurance plans are noncontributory. | |||||||||||||
The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 2.9 | $ | 2.5 | $ | 2.5 | |||||||
Interest cost | 21.7 | 28.4 | 32.9 | ||||||||||
Expected return on plan assets | (11.1 | ) | (10.6 | ) | (4.4 | ) | |||||||
Amortization of prior service credit | (0.2 | ) | (0.2 | ) | (0.3 | ) | |||||||
Amortization of net actuarial loss | 2.3 | 2.5 | 2.9 | ||||||||||
Net periodic benefit cost | $ | 15.6 | $ | 22.6 | $ | 33.6 | |||||||
Assumptions: | 2013 | 2012 | 2011 | ||||||||||
Discount rate | 3.8 | % | 4.85 | % | 5.5 | % | |||||||
Rate of return | 5 | % | 5 | % | 5 | % | |||||||
The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. | |||||||||||||
For expense purposes in 2013, the Company applied a discount rate of 3.80% to its postretirement benefit plans. For expense purposes in 2014, the Company will apply a discount rate of 4.59% to its postretirement benefit plans. A 0.25 percentage point reduction in the discount rate would increase postretirement benefit expense by approximately $0.5 million for 2014. | |||||||||||||
In December 2010, the Company established a VEBA trust for The Timken Company Bargaining Unit Welfare Benefit Plan. For expense purposes in 2013, the Company applied an expected rate of return of 5.00% to the VEBA trust assets. For expense purposes in 2014, the Company will apply an expected rate of return on plan assets of 5.00%. A 0.25 percentage point reduction in the expected rate of return would increase postretirement benefit expense by approximately $0.6 million for 2014. | |||||||||||||
The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets of the defined benefit postretirement benefit plans as of December 31, 2013 and 2012: | |||||||||||||
2013 | 2012 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 639.2 | $ | 628.6 | |||||||||
Service cost | 2.9 | 2.5 | |||||||||||
Interest cost | 21.7 | 28.4 | |||||||||||
Amendments | — | 0.9 | |||||||||||
Actuarial (gains) losses | (101.9 | ) | 24.5 | ||||||||||
Benefits paid | (46.3 | ) | (45.7 | ) | |||||||||
Benefit obligation at end of year | $ | 515.6 | $ | 639.2 | |||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 221.9 | $ | 170.9 | |||||||||
Actual return on plan assets | 27.2 | 9.8 | |||||||||||
Company contributions / payments | 37.3 | 86.9 | |||||||||||
Benefits paid | (46.3 | ) | (45.7 | ) | |||||||||
Fair value of plan assets at end of year | 240.1 | 221.9 | |||||||||||
Funded status at end of year | $ | (275.5 | ) | $ | (417.3 | ) | |||||||
Amounts recognized on the Consolidated Balance Sheets: | |||||||||||||
Current liabilities | $ | (41.6 | ) | $ | (45.5 | ) | |||||||
Non-current liabilities | (233.9 | ) | (371.8 | ) | |||||||||
$ | (275.5 | ) | $ | (417.3 | ) | ||||||||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||
Net actuarial loss | $ | 5.5 | $ | 125.7 | |||||||||
Net prior service cost | 7.8 | 7.6 | |||||||||||
Accumulated other comprehensive loss | $ | 13.3 | $ | 133.3 | |||||||||
Changes in plan assets and benefit obligations recognized in AOCL: | |||||||||||||
AOCI at beginning of year | $ | 133.3 | $ | 109.5 | |||||||||
Net actuarial (gain) loss | (117.9 | ) | 25.2 | ||||||||||
Prior service cost | — | 0.9 | |||||||||||
Recognized net actuarial loss | (2.3 | ) | (2.5 | ) | |||||||||
Recognized prior service credit | 0.2 | 0.2 | |||||||||||
Total recognized in accumulated other comprehensive loss at December 31 | $ | 13.3 | $ | 133.3 | |||||||||
The presentation in the above tables for amounts recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets is before the effect of income taxes. | |||||||||||||
The following table summarizes assumptions used to measure the benefit obligation for the postretirement benefit plans at December 31: | |||||||||||||
Assumptions: | 2013 | 2012 | |||||||||||
Discount rate | 4.59 | % | 3.8 | % | |||||||||
Rate of return | 5 | % | 5 | % | |||||||||
The current portion of accrued postretirement benefit cost, which is included in salaries, wages and benefits on the Consolidated Balance Sheets, was $41.6 million and $45.5 million at December 31, 2013 and 2012, respectively. In 2013, the current portion of accrued postretirement benefit cost related to unfunded plans and represents the actuarial present value of expected payments related to the plans to be made over the next 12 months. | |||||||||||||
The estimated net actuarial loss and prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are zero expense and $1.4 million of expense, respectively. | |||||||||||||
For measurement purposes, the Company assumed a weighted-average annual rate of increase in the per capita cost (health care cost trend rate) for medical benefits of 7.25% for 2014, declining gradually to 5.0% in 2023 and thereafter; and 7.25% for 2014, declining gradually to 5.0% in 2023 and thereafter for prescription drug benefits; and 9.25% for 2014, declining gradually to 5.0% in 2031 and thereafter for HMO benefits. | |||||||||||||
The assumed health care cost trend rate may have a significant effect on the amounts reported. A one percentage point increase in the assumed health care cost trend rate would have increased the 2013 total service and interest cost components by $0.5 million and would have increased the postretirement benefit obligation by $10.4 million. A one percentage point decrease would provide corresponding reductions of $0.4 million and $9.5 million, respectively. | |||||||||||||
The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the Medicare Act) provides for prescription drug benefits under Medicare Part D and contains a subsidy to plan sponsors who provide “actuarially equivalent” prescription plans. The Company’s actuary determined that the prescription drug benefit provided by the Company’s postretirement plan is considered to be actuarially equivalent to the benefit provided under the Medicare Act. In accordance with ASC 715, “Compensation – Retirement Benefits,” all measures of the accumulated postretirement benefit obligation or net periodic postretirement benefit cost in the financial statements or accompanying notes reflect the effects of the Medicare Act on the plan for the entire fiscal year. The 2013 expected subsidy was $3.1 million, of which $1.4 million was received prior to December 31, 2013. | |||||||||||||
Plan Assets: | |||||||||||||
The Company’s target allocation for the VEBA trust assets, as well as the actual VEBA trust asset allocation as of December 31, 2013 and 2012, was as follows: | |||||||||||||
Current Target | Percentage of VEBA Assets | ||||||||||||
Allocation | at December 31, | ||||||||||||
Asset Category | 2013 | 2012 | |||||||||||
Equity securities | 45% | to | 55% | 55% | 49% | ||||||||
Debt securities | 45% | to | 55% | 45% | 51% | ||||||||
Total | 100% | 100% | |||||||||||
The Company recognizes its overall responsibility to ensure that the assets of its postretirement benefit plan are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. | |||||||||||||
Preservation of capital is important; however, the Company also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the postretirement funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. | |||||||||||||
The following table presents the fair value hierarchy for those investments of the Company’s VEBA trust assets measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 2.9 | $ | — | $ | 2.9 | $ | — | |||||
Common Collective fund - U.S. equities | 82.7 | — | 82.7 | — | |||||||||
Common Collective fund - international equities | 49.7 | — | 49.7 | — | |||||||||
Common collective funds - fixed income | 104.8 | — | 104.8 | — | |||||||||
Total Assets | $ | 240.1 | $ | — | $ | 240.1 | $ | — | |||||
The following table presents the fair value hierarchy for those investments of the Company’s VEBA trust assets measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 2.1 | $ | — | $ | 2.1 | $ | — | |||||
Common Collective fund - U.S. equities | 65.6 | — | 65.6 | — | |||||||||
Common Collective fund - international equities | 43.4 | — | 43.4 | — | |||||||||
Common collective funds - fixed income | 110.8 | — | 110.8 | — | |||||||||
Total Assets | $ | 221.9 | $ | — | $ | 221.9 | $ | — | |||||
Cash and cash equivalents are valued at redemption value. Common collective funds are valued based on a net asset value per share, which is used as a practical expedient to fair value. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security. | |||||||||||||
Cash Flows: | |||||||||||||
Employer Contributions to Postretirement Benefit Plans: | |||||||||||||
2012 | $ | 50 | |||||||||||
2013 | — | ||||||||||||
2014 (planned) | — | ||||||||||||
Future benefit payments are expected to be as follows: | |||||||||||||
Gross | Expected | Net Including | |||||||||||
Medicare | Medicare | ||||||||||||
Subsidies | Subsidies | ||||||||||||
2014 | $ | 53.6 | $ | 2.7 | $ | 50.9 | |||||||
2015 | 52 | 2.9 | 49.1 | ||||||||||
2016 | 50.5 | 3.1 | 47.4 | ||||||||||
2017 | 49 | 3.2 | 45.8 | ||||||||||
2018 | 47.6 | 3.2 | 44.4 | ||||||||||
2019-2023 | 206.6 | 15.7 | 190.9 | ||||||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Segment Information | ' | |||||||||
The Company operates under four reporting segments: (1) Mobile Industries; (2) Process Industries; (3) Aerospace; and (4) Steel. | ||||||||||
Description of types of products and services from which each reportable segment derives its revenues: | ||||||||||
The Company's reportable segments are business units that target different industry sectors. Each reportable segment is managed separately to address specific customer needs in these diverse market segments. | ||||||||||
The Mobile Industries segment includes global sales of bearings, mechanical power transmission components, drive-chains, roller-chains, augers and related products and services (other than steel) to a diverse customer base, including original equipment manufacturers and their suppliers of passenger cars, light trucks, medium to heavy-duty trucks, rail cars, locomotives, agricultural, construction and mining equipment. The Mobile Industries segment also includes aftermarket distribution operations for automotive and heavy truck applications. | ||||||||||
The Process Industries segment includes global sales of bearings, mechanical power transmission components, industrial chains, augers and related products and services (other than steel) to a diverse customer base including original equipment manufacturers in the power transmission, energy and heavy industry market sectors. The Process Industries segment also includes aftermarket distribution operations for products other than steel and automotive applications. | ||||||||||
The Aerospace segment includes sales of bearings, helicopter transmission systems, rotor head assemblies, turbine engine components, gears and other precision flight-critical components for commercial and military aviation applications. The Aerospace segment also provides aftermarket services, including repair and overhaul of engines, transmissions and fuel controls as well as aerospace bearing repair and component reconditioning. The Aerospace segment also includes sales of precision bearings and related products for health and critical motion control applications. | ||||||||||
The Steel segment manufactures alloy steel as well as carbon and micro-alloy steel. Included in its portfolio are SBQ bars and seamless mechanical tubing. In addition, this segment supplies machining and thermal treatment services, as well as manages raw material recycling programs. This segment's metallurgical expertise and unique operational capabilities drive customized, high-value solutions for the mobile, industrial and energy sectors. Less than 10% of the Company's steel is directly consumed in its bearing operations. In addition, the Company sells steel to other anti-friction bearing companies and to aircraft, forging, construction, industrial equipment, mining, tooling, oil and gas drilling and automotive industries and steel service centers. | ||||||||||
Measurement of segment profit or loss and segment assets: | ||||||||||
The Company evaluates performance and allocates resources based on return on capital and profitable growth. The primary measurement used by management to measure the financial performance of each segment is EBIT. | ||||||||||
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are recorded at values based on market prices, which creates intercompany profit on intersegment sales or transfers that is eliminated in consolidation. | ||||||||||
Factors used by management to identify the enterprise’s reportable segments: | ||||||||||
Net sales by geographic area are reported by the destination of net sales, which is reflective of how the Company operates its segments. Long-lived assets by geographic area are reported by the location of the subsidiary. | ||||||||||
Export sales from the United States and Canada are less than 10% of the Company's revenue. The Company’s Mobile Industries, Process Industries and Aerospace segments have historically participated in the global bearing industry, while the Steel segment has concentrated primarily on U.S. customers. | ||||||||||
Timken’s non-U.S. operations are subject to normal international business risks not generally applicable to domestic business. These risks include currency fluctuation, changes in tariff restrictions, difficulties in establishing and maintaining relationships with local distributors and dealers, import and export licensing requirements, difficulties in staffing and managing geographically diverse operations and restrictive regulations by foreign governments, including price and exchange controls. | ||||||||||
Geographic Financial Information: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net sales: | ||||||||||
United States | $ | 2,887.70 | $ | 3,420.30 | $ | 3,494.60 | ||||
Canada & Mexico | 258.9 | 275.1 | 268.4 | |||||||
South America | 141.8 | 153.5 | 186 | |||||||
Europe / Middle East / Africa | 574 | 594.2 | 652.3 | |||||||
Asia-Pacific | 478.8 | 543.9 | 568.9 | |||||||
$ | 4,341.20 | $ | 4,987.00 | $ | 5,170.20 | |||||
Long-lived assets: | ||||||||||
United States | $ | 1,199.40 | $ | 1,055.70 | $ | 963.1 | ||||
Canada & Mexico | 12.6 | 6.1 | 16.3 | |||||||
South America | 2.1 | 4.4 | 6.2 | |||||||
Europe / Middle East / Africa | 105.5 | 101.6 | 102 | |||||||
Asia-Pacific | 238.5 | 237.5 | 221.3 | |||||||
$ | 1,558.10 | $ | 1,405.30 | $ | 1,308.90 | |||||
Business Segment Information: | ||||||||||
The following tables provide segment financial information and a reconciliation of segment results to consolidated results: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net sales to external customers: | ||||||||||
Mobile Industries | $ | 1,474.30 | $ | 1,675.00 | $ | 1,768.90 | ||||
Process Industries | 1,231.70 | 1,337.60 | 1,240.50 | |||||||
Aerospace | 329.5 | 346.9 | 324.1 | |||||||
Steel | 1,305.70 | 1,627.50 | 1,836.70 | |||||||
$ | 4,341.20 | $ | 4,987.00 | $ | 5,170.20 | |||||
Intersegment sales: | ||||||||||
Mobile Industries | $ | 1.1 | $ | 0.5 | $ | 0.5 | ||||
Process Industries | 3.9 | 5.7 | 4.1 | |||||||
Steel | 75.1 | 101.2 | 119.8 | |||||||
$ | 80.1 | $ | 107.4 | $ | 124.4 | |||||
Segment EBIT: | ||||||||||
Mobile Industries | $ | 164.7 | $ | 208.1 | $ | 261.8 | ||||
Process Industries | 201.9 | 274.9 | 274.2 | |||||||
Aerospace | 26.6 | 36.3 | 5.1 | |||||||
Steel | 140.2 | 251.8 | 267.4 | |||||||
Total EBIT, for reportable segments | $ | 533.4 | $ | 771.1 | $ | 808.5 | ||||
Unallocated corporate expenses | (82.5 | ) | (84.4 | ) | (80.8 | ) | ||||
CDSOA receipts, net of expense | — | 108 | — | |||||||
Separation costs | (13.0 | ) | — | — | ||||||
Interest expense | (24.4 | ) | (31.1 | ) | (36.8 | ) | ||||
Interest income | 1.9 | 2.9 | 5.6 | |||||||
Intersegment adjustments | 1.7 | (0.5 | ) | 0.3 | ||||||
Income before income taxes | $ | 417.1 | $ | 766 | $ | 696.8 | ||||
2013 | 2012 | 2011 | ||||||||
Assets employed at year-end: | ||||||||||
Mobile Industries | $ | 1,051.40 | $ | 1,052.90 | $ | 1,233.70 | ||||
Process Industries | 1,096.70 | 1,056.20 | 979.3 | |||||||
Aerospace | 555.8 | 480.6 | 526.6 | |||||||
Steel | 1,198.90 | 921.4 | 954.2 | |||||||
Corporate | 575.1 | 733.1 | 633.6 | |||||||
$ | 4,477.90 | $ | 4,244.20 | $ | 4,327.40 | |||||
Capital expenditures: | ||||||||||
Mobile Industries | $ | 40.3 | $ | 32.1 | $ | 39.5 | ||||
Process Industries | 80.1 | 72.4 | 54.4 | |||||||
Aerospace | 7.8 | 14 | 10.6 | |||||||
Steel | 192.6 | 175.5 | 99.8 | |||||||
Corporate | 5 | 3.2 | 1 | |||||||
$ | 325.8 | $ | 297.2 | $ | 205.3 | |||||
Depreciation and amortization: | ||||||||||
Mobile Industries | $ | 50.2 | $ | 60.8 | $ | 70.2 | ||||
Process Industries | 67.4 | 62.2 | 51.8 | |||||||
Aerospace | 20.5 | 23.1 | 23.2 | |||||||
Steel | 53.8 | 49.7 | 45.8 | |||||||
Corporate | 2.7 | 2.2 | 1.5 | |||||||
$ | 194.6 | $ | 198 | $ | 192.5 | |||||
Corporate assets include corporate buildings and cash and cash equivalents. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Income Taxes | ' | |||||||||
Income before income taxes, based on geographic location of the operations to which such earnings are attributable, is provided below. As the Company has elected to treat certain foreign subsidiaries as branches for U.S. income tax purposes, pretax income attributable to the United States shown below may differ from the pretax income reported in the Company’s annual U.S. Federal income tax return. | ||||||||||
Income before income taxes: | ||||||||||
2013 | 2012 | 2011 | ||||||||
United States | $ | 314.5 | $ | 680.8 | $ | 527.6 | ||||
Non-United States | 102.6 | 85.2 | 169.2 | |||||||
Income before income taxes | $ | 417.1 | $ | 766 | $ | 696.8 | ||||
The provision for income taxes consisted of the following: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Current: | ||||||||||
Federal | $ | 99.9 | $ | 103.5 | $ | 53.8 | ||||
State and local | 14.4 | 7.2 | 6.8 | |||||||
Foreign | 39.3 | 36.3 | 55.1 | |||||||
$ | 153.6 | $ | 147 | $ | 115.7 | |||||
Deferred: | ||||||||||
Federal | $ | (3.4 | ) | $ | 105.2 | $ | 117.7 | |||
State and local | 2.9 | 18.1 | 11.7 | |||||||
Foreign | 1 | (0.2 | ) | (4.9 | ) | |||||
$ | 0.5 | $ | 123.1 | $ | 124.5 | |||||
United States and foreign tax expense on income | $ | 154.1 | $ | 270.1 | $ | 240.2 | ||||
The Company made net income tax payments of $111.2 million, $121.0 million and $101.9 million in 2013, 2012 and 2011, respectively. | ||||||||||
The following table is the reconciliation between the provision for income taxes and the amount computed by applying the U.S. Federal income tax rate of 35% to income before taxes: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Income tax at the U.S. federal statutory rate | $ | 146 | $ | 268.1 | $ | 243.9 | ||||
Adjustments: | ||||||||||
State and local income taxes, net of federal tax benefit | 10.9 | 15.6 | 11.2 | |||||||
Tax on foreign remittances and U.S. tax on foreign income | 41 | 9.5 | 15.3 | |||||||
Tax expense related to undistributed earnings of foreign subsidiaries | 8.7 | — | — | |||||||
Foreign losses without current tax benefits | 9.5 | 16.1 | 7.7 | |||||||
Foreign earnings taxed at different rates including tax holidays | (4.4 | ) | (18.1 | ) | (26.4 | ) | ||||
U.S. domestic manufacturing deduction | (11.3 | ) | (7.5 | ) | (6.6 | ) | ||||
U.S. foreign tax credit | (25.9 | ) | (13.7 | ) | — | |||||
U.S. research tax credit | (3.8 | ) | (0.4 | ) | (1.5 | ) | ||||
Accruals and settlements related to tax audits | (16.9 | ) | 4.3 | 1.2 | ||||||
Other items, net | 0.3 | (3.8 | ) | (4.6 | ) | |||||
Provision for income taxes | $ | 154.1 | $ | 270.1 | $ | 240.2 | ||||
Effective income tax rate | 36.9 | % | 35.3 | % | 34.5 | % | ||||
In the fourth quarter of 2013, the Company implemented a strategy to repatriate approximately $365 million of cash, incurring tax expense of approximately $26 million. The Company repatriated $123 million of cash in January 2014, with the remaining portion expected to be repatriated in future periods. In connection with various investment arrangements, the Company has been granted a “holiday” from income taxes for one affiliate in Asia for 2013 and 2012 and two affiliates in Asia for 2011. These agreements began to expire at the end of 2010, with full expiration in 2018. In total, the agreements reduced income tax expense by $0.7 million in 2013, $1.0 million in 2012 and $1.0 million in 2011. These savings resulted in an increase to earnings per diluted share of $0.01 in 2013, $0.01 in 2012 and $0.01 in 2011. | ||||||||||
Income tax expense includes U.S. and international income taxes. The Company had undistributed earnings related to its international subsidiaries of $577.9 million and $544.0 million at December 31, 2013 and 2012, respectively. A deferred tax liability of $8.7 million has been accrued at December 31, 2013 for earnings of $136.1 million (relating to the$365 million cash repatriation strategy) that are available to be repatriated to the U.S. No provisions for U.S. income taxes have been made with respect to earnings of $441.8 million that are planned to be reinvested indefinitely outside the United States. The amount of U.S. income taxes that may be applicable to such earnings is $23.3 million if such earnings were repatriated, net of foreign tax credits. | ||||||||||
The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2013 and 2012 was as follows: | ||||||||||
2013 | 2012 | |||||||||
Deferred tax assets: | ||||||||||
Accrued postretirement benefits cost | $ | 130.1 | $ | 185 | ||||||
Accrued pension cost | — | 137.1 | ||||||||
Inventory | 4 | 15.4 | ||||||||
Other employee benefit accruals | 20.3 | 26.6 | ||||||||
Tax loss and credit carryforwards | 166.7 | 145.1 | ||||||||
Other, net | 52.6 | 59.9 | ||||||||
Valuation allowances | (195.9 | ) | (183.9 | ) | ||||||
$ | 177.8 | $ | 385.2 | |||||||
Pension assets | (33.4 | ) | — | |||||||
Deferred tax liabilities - principally depreciation and amortization | (239.0 | ) | (231.9 | ) | ||||||
Net deferred tax (liabilities) assets | $ | (94.6 | ) | $ | 153.3 | |||||
The Company has a U.S. foreign tax credit carryforward of $19.9 million that will begin to expire in 2018, and U.S. state and local credit carryforwards of $2.1 million, portions of which will expire in 2014. The Company also has U.S. state and local loss carryforwards with tax benefits totaling $1.0 million, portions of which will expire at the end of 2014. In addition, the Company has loss carryforwards in various non-U.S. jurisdictions with tax benefits totaling $143.4 million having various expiration dates, as well as tax credit carryforwards of $0.2 million. The Company has provided valuation allowances of $162.2 million against certain of these carryforwards. The majority of the non-U.S. loss carryforwards represent local country net operating losses for branches of the Company or entities treated as branches of the Company under U.S. tax law. Tax benefits have been recorded for these losses in the United States. The related local country net operating loss carryforwards are offset fully by valuation allowances. In addition to loss and credit carryforwards, the Company has provided valuation allowances of $33.7 million against other deferred tax assets. | ||||||||||
As of December 31, 2013, the Company had $49.5 million of total gross unrecognized tax benefits. Included in this amount was $35.8 million, which represented the amount of unrecognized tax benefits that would favorably impact the Company’s effective income tax rate in any future periods if such benefits were recognized. As of December 31, 2013, the Company anticipates a decrease in its unrecognized tax positions of approximately $30.0 million to $35.0 million during the next 12 months. The anticipated decrease is primarily due to settlements with tax authorities and the expiration of various statutes of limitation. As of December 31, 2013, the Company had accrued $9.8 million of interest and penalties related to uncertain tax positions. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense. | ||||||||||
As of December 31, 2012, the Company had $112.6 million of total gross unrecognized tax benefits. Included in this amount was $47.5 million, which represented the amount of unrecognized tax benefits that would favorably impact the Company’s effective income tax rate in any future periods if such benefits were recognized. As of December 31, 2012, the Company had accrued $11.3 million of interest and penalties related to uncertain tax positions. | ||||||||||
The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2013 and 2012: | ||||||||||
2013 | 2012 | |||||||||
Beginning balance, January 1 | $ | 112.6 | $ | 87.2 | ||||||
Tax positions related to the current year: | ||||||||||
Additions | 9.3 | 20.6 | ||||||||
Tax positions related to prior years: | ||||||||||
Additions | 6.9 | 7 | ||||||||
Reductions | (1.4 | ) | (1.7 | ) | ||||||
Settlements with tax authorities | (77.9 | ) | — | |||||||
Lapses in statutes of limitation | — | (0.5 | ) | |||||||
Ending balance, December 31 | $ | 49.5 | $ | 112.6 | ||||||
During 2013, gross unrecognized tax benefits decreased primarily due to net reductions related to various current year and prior year tax matters, including settlement of tax matters with government authorities and taxes related to the Company’s international operations. These decreases were partially offset by additions related to prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations. | ||||||||||
During 2012, gross unrecognized tax benefits increased primarily due to net additions related to various prior year tax matters, including U.S. state and local taxes, and taxes related to the Company’s international operations. These increases were partially offset by reductions related to prior year tax matters, including U.S. state and local taxes and taxes related to the Company’s international operations, settlement of tax matters with government authorities and lapses in statutes of limitation on various tax matters. | ||||||||||
As of December 31, 2013, the Company is subject to examination by the IRS for tax years 2012 to the present. The Company is also subject to tax examination in various U.S. state and local tax jurisdictions for tax years 2006 to the present, as well as various foreign tax jurisdictions, including Germany, Italy and India for tax years 2002 to the present. The current portion of the Company’s unrecognized tax benefits was presented on the Consolidated Balance Sheets within income taxes payable, and the non-current portion was presented as a component of other non-current liabilities. |
Fair_Value
Fair Value | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Fair Value | ' | ||||||||||||
The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheet measured at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||
December 31, 2013 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 384.6 | $ | 320.4 | $ | 64.2 | $ | — | |||||
Restricted Cash | 15.1 | — | 15.1 | — | |||||||||
Short-term investments | 13.9 | — | 13.9 | — | |||||||||
Foreign currency hedges | 0.9 | — | 0.9 | — | |||||||||
Total Assets | $ | 414.5 | $ | 320.4 | $ | 94.1 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 9.3 | $ | — | $ | 9.3 | $ | — | |||||
Total Liabilities | $ | 9.3 | $ | — | $ | 9.3 | $ | — | |||||
December 31, 2012 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 586.4 | $ | 303.9 | $ | 282.5 | $ | — | |||||
Restricted Cash | 15.1 | — | 15.1 | — | |||||||||
Short-term investments | 17.3 | — | 17.3 | — | |||||||||
Foreign currency hedges | 1.2 | — | 1.2 | — | |||||||||
Total Assets | $ | 620 | $ | 303.9 | $ | 316.1 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 1.9 | $ | — | $ | 1.9 | $ | — | |||||
Total Liabilities | $ | 1.9 | $ | — | $ | 1.9 | $ | — | |||||
Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are valued at redemption value. Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts. | |||||||||||||
The Company does not believe it has significant concentrations of risk associated with the counterparts to its financial instruments. | |||||||||||||
During 2012, machinery and equipment primarily associated with the manufacturing facility in St. Thomas with a carrying value of $10.4 million was written down to its fair value of $3.8 million, resulting in an impairment loss of $6.6 million. The fair value of these assets was based on the price that would be expected to be received in a current transaction to sell the assets on a standalone basis, considering the age and physical attributes of the equipment, compared to the cost of similar used equipment. The fair value of machinery and equipment was measured using Level 3 inputs. | |||||||||||||
Financial Instruments: | |||||||||||||
The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, accounts receivable, net, accounts payable, trade, short-term borrowings and long-term debt. Due to their short-term nature, the carrying value of cash and cash equivalents, short-term investments, accounts receivable, net, accounts payable, trade and short-term borrowings are a reasonable estimate of their fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $474.5 million and $481.3 million at December 31, 2013 and 2012, respectively. The carrying value of this debt was $441.6 million and $424.9 million at December 31, 2013 and 2012, respectively. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2013 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' |
Derivative Instruments and Hedging Activities | ' |
The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. Forward contracts on various foreign currencies are entered into in order to manage the foreign currency exchange rate risk on forecasted revenue denominated in foreign currencies. Other forward exchange contracts on various foreign currencies are entered into in order to manage the foreign currency exchange rate risk associated with certain of the Company’s commitments denominated in foreign currencies. Forward contracts on various commodities are entered into in order to manage the price risk associated with forecasted purchases of natural gas used in the Company’s manufacturing process. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s fixed and floating-rate borrowings. | |
The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and certain interest rate hedges as fair value hedges of fixed-rate borrowings. The majority of the Company’s natural gas forward contracts are not subject to any hedge designation as they are considered within the normal purchases exemption. | |
The Company does not purchase or hold any derivative financial instruments for trading purposes. As of December 31, 2013 and 2012, the Company had $516.7 million and $97.0 million, respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 16 – Fair Value for the fair value disclosure of derivative financial instruments, | |
Cash Flow Hedging Strategy: | |
For certain derivative instruments that are designated as and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion), or hedge components excluded from the assessment of effectiveness, are recognized in the Consolidated Statement of Income during the current period. | |
To protect against a reduction in the value of forecasted foreign currency cash flows resulting from export sales over the next year, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted intra-group revenue or expense denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against foreign currencies, the decline in the present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. | |
Fair Value Hedging Strategy: | |
For derivative instruments that are designated and qualify as fair value hedges (i.e., hedging the exposure to changes in the fair value of an asset or a liability or an identified portion thereof that is attributable to a particular risk), the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in the same line item associated with the hedged item (i.e., in “interest expense” when the hedged item is fixed-rate debt). |
Research_and_Development
Research and Development | 12 Months Ended |
Dec. 31, 2013 | |
Research and Development [Abstract] | ' |
Research and Development | ' |
The Company performs research and development under Company-funded programs and under contracts with the federal government and others. Expenditures committed to research and development amounted to $46.1 million, $52.6 million and $49.6 million in 2013, 2012 and 2011, respectively. Of these amounts, $0.4 million, $0.8 million, and $0.3 million respectively, were funded by others. Expenditures may fluctuate from year-to-year depending on special projects and needs. |
Continued_Dumping_and_Subsidy_
Continued Dumping and Subsidy Offset Act (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
CDSOA [Abstract] | ' |
Continued Dumping And Subsidy Offset Act (CDSOA) | ' |
CDSOA provides for distribution of monies collected by U.S. Customs and Border Protection (U.S. Customs) from antidumping cases to qualifying domestic producers where the domestic producers have continued to invest in their technology, equipment and people. The Company reported CDSOA expense of $2.8 million and income of $108.0 million in 2013 and 2012, respectively. | |
In September 2002, the World Trade Organization (WTO) ruled that CDSOA payments are not consistent with international trade rules. In February 2006, U.S. legislation was enacted that ended CDSOA distributions for dumped imports covered by antidumping duty orders entering the United States after September 30, 2007. Instead, any such antidumping duties collected would remain with the U.S. Treasury. Several countries have objected that this U.S. legislation is not consistent with WTO rulings, and were granted retaliation rights by the WTO, typically in the form of increased tariffs on some imported goods from the United States. The European Union and Japan have been retaliating in this fashion against the operation of U.S. law. | |
In 2006, the U.S. Court of International Trade (CIT) ruled, in two separate decisions, that the procedure for determining recipients eligible to receive CDSOA distributions was unconstitutional. In addition, several other court cases challenging various provisions of CDSOA were ongoing. As a result, from 2006 through 2010, U.S. Customs withheld a portion of the amounts that would otherwise have been distributed under CDSOA. | |
In February 2009, the U.S. Court of Appeals for the Federal Circuit reversed both of the 2006 decisions of the CIT. Later in December 2009, a plaintiff petitioned the U.S. Supreme Court to hear a further appeal, but the Supreme Court declined the petition, allowing the appellate court reversals to stand. At that time, several court cases challenging various provisions of the CDSOA were still unresolved, so U.S. Customs accepted the CIT’s recommendation to continue to withhold CDSOA receipts related to 2006 through 2010 until January 2012. | |
U.S. Customs began distributing the withheld funds to affected domestic producers in early April 2012. In April 2012, the Company received CDSOA distributions of $112.8 million in the aggregate for amounts originally withheld from 2006 through 2010. | |
While some of the challenges to CDSOA have been resolved, others are still in litigation. Since there continue to be legal challenges to CDSOA, U.S. Customs has advised all affected domestic producers that it is possible that CDSOA distributions could be subject to clawback. Management of the Company believes that the likelihood of clawback is remote. |
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Information | ' | |||||||||||||||
(Unaudited) | ||||||||||||||||
2013 | ||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||
Net sales | $ | 1,089.90 | $ | 1,126.50 | $ | 1,061.50 | $ | 1,063.30 | $ | 4,341.20 | ||||||
Gross profit | 274.5 | 302.1 | 251.7 | 263.7 | 1,092.00 | |||||||||||
Impairment and restructuring charges (1) | 1.2 | 6.7 | 3.7 | 4.8 | 16.4 | |||||||||||
Separation costs (2) | — | — | — | 13 | 13 | |||||||||||
Net income (3) | 75 | 82.8 | 52.5 | 52.7 | 263 | |||||||||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | 0.3 | 0.1 | 0.3 | ||||||||||
Net income attributable to The Timken Company | 75.1 | 82.8 | 52.2 | 52.6 | 262.7 | |||||||||||
Net income per share - Basic: | ||||||||||||||||
Total net income per share | $ | 0.78 | $ | 0.86 | $ | 0.55 | $ | 0.56 | $ | 2.76 | ||||||
Net income per share - Diluted: | ||||||||||||||||
Total net income per share | $ | 0.77 | $ | 0.86 | $ | 0.54 | $ | 0.55 | $ | 2.74 | ||||||
Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 | ||||||
2012 | ||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||
Net sales | $ | 1,421.00 | $ | 1,343.20 | $ | 1,142.50 | $ | 1,080.30 | $ | 4,987.00 | ||||||
Gross profit | 411.6 | 377.3 | 298.9 | 278.5 | 1,366.30 | |||||||||||
Impairment and restructuring charges (4) | 0.2 | 16.7 | 11.9 | 0.7 | 29.5 | |||||||||||
Net income (5) | 156 | 183.4 | 81.1 | 75.4 | 495.9 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 0.3 | (0.2 | ) | 0.2 | 0.1 | 0.4 | ||||||||||
Net income attributable to The Timken Company | 155.7 | 183.6 | 80.9 | 75.3 | 495.5 | |||||||||||
Net income per share - Basic: | ||||||||||||||||
Total net income per share | $ | 1.59 | $ | 1.88 | $ | 0.84 | $ | 0.79 | $ | 5.11 | ||||||
Net income per share - Diluted: | ||||||||||||||||
Total net income per share | $ | 1.58 | $ | 1.86 | $ | 0.83 | $ | 0.78 | $ | 5.07 | ||||||
Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 | ||||||
Earnings per share are computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. | ||||||||||||||||
-1 | Impairment and restructuring charges for the second quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $5.2 million, and exit costs of $0.7 million. Impairment and restructuring charges for the third quarter of 2013 included severance and related benefit costs of $3.2 million, including pension settlement costs of $1.5 million, and exit costs of $0.5 million. Impairment and restructuring charges for the fourth quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $0.4 million, impairment charges of $0.7 million and a favorable adjustment for exit costs of $1.9 million. | |||||||||||||||
-2 | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. | |||||||||||||||
-3 | Net income for the fourth quarter of 2013 included a gain of $5.4 million on the sale of real estate in Brazil. | |||||||||||||||
-4 | Impairment and restructuring charges for the second quarter of 2012 included severance and related benefit costs of $16.5 million, including a curtailment of pension benefits of $10.7 million, and exit costs of $0.2 million. Impairment and restructuring charges for the third quarter of 2012 included impairment charges of $6.4 million, severance and related benefit costs of $1.3 million and exit costs of $4.2 million. | |||||||||||||||
-5 | Net income for the second quarter of 2012 included CDSOA receipts of $109.5 million, net of expenses. |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||
Valuation and Qualifying Accounts | ' | |||||||||
Schedule II—Valuation and Qualifying Accounts | ||||||||||
The Timken Company and Subsidiaries | ||||||||||
Allowance for uncollectible accounts: | 2013 | 2012 | 2011 | |||||||
Balance at Beginning of Period | $ | 12.1 | $ | 19 | $ | 27.6 | ||||
Additions: | ||||||||||
Charged to Costs and Expenses (1) | 1.5 | 7.6 | 14.4 | |||||||
Charged to Other Accounts (2) | — | (0.6 | ) | (2.5 | ) | |||||
Deductions (3) | 3.3 | 13.9 | 20.5 | |||||||
Balance at End of Period | $ | 10.3 | $ | 12.1 | $ | 19 | ||||
Allowance for surplus and obsolete inventory: | 2013 | 2012 | 2011 | |||||||
Balance at Beginning of Period | $ | 21.4 | $ | 30.9 | $ | 30.8 | ||||
Additions: | ||||||||||
Charged to Costs and Expenses (4) | 11.2 | 10.8 | 12.2 | |||||||
Charged to Other Accounts (2) | 0.2 | 1.2 | 5.2 | |||||||
Deductions (5) | 12.5 | 21.5 | 17.3 | |||||||
Balance at End of Period | $ | 20.3 | $ | 21.4 | $ | 30.9 | ||||
Valuation allowance on deferred tax assets: | 2013 | 2012 | 2011 | |||||||
Balance at Beginning of Period | $ | 183.9 | $ | 179.7 | $ | 174.9 | ||||
Additions | ||||||||||
Charged to Costs and Expenses (6) | 32.1 | 13.8 | 22.6 | |||||||
Charged to Other Accounts (7) | (4.2 | ) | 13.8 | (3.9 | ) | |||||
Deductions (8) | 15.9 | 23.4 | 13.9 | |||||||
Balance at End of Period | $ | 195.9 | $ | 183.9 | $ | 179.7 | ||||
-1 | Provision for uncollectible accounts included in expenses. | |||||||||
-2 | Currency translation and change in reserves due to acquisitions, net of divestitures. | |||||||||
-3 | Actual accounts written off against the allowance—net of recoveries. | |||||||||
-4 | Provisions for surplus and obsolete inventory included in expenses. | |||||||||
-5 | Inventory items written off against the allowance. | |||||||||
-6 | Increase in valuation allowance is recorded as a component of the provision for income taxes. | |||||||||
-7 | Includes valuation allowances recorded against other comprehensive income/loss or goodwill. | |||||||||
-8 | Amount primarily relates to the reversal of valuation allowances due to the realization of net operating loss carryforwards. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation: | |
The consolidated financial statements include the accounts and operations of the Company in which a controlling interest is maintained. Investments in affiliated companies that the Company does not control, and the activities of which it is not the primary beneficiary, are accounted for using the equity method. All significant intercompany accounts and transactions are eliminated upon consolidation. | |
Revenue Recognition | ' |
Revenue Recognition: | |
The Company recognizes revenue when title passes to the customer. This occurs at the shipping point except for goods sold by certain foreign entities and certain exported goods, where title passes when the goods reach their destination. Selling prices are fixed based on purchase orders or contractual arrangements. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold in the Consolidated Statements of Income. | |
The Company acquired the assets of Philadelphia Gear in July 2011. Philadelphia Gear recognizes a portion of its revenues on the percentage-of-completion method measured on the cost-to-cost basis. | |
Cash Equivalents | ' |
Cash Equivalents: | |
The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts: | |
The Company maintains an allowance for doubtful accounts, which represents an estimate of the losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance was based upon historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts and management’s evaluation of business risk. The Company extends credit to customers satisfying pre-defined credit criteria. The Company believes it has limited concentration of credit risk due to the diversity of its customer base. | |
Inventories | ' |
Inventories: | |
Inventories are valued at the lower of cost or market. The majority of domestic inventories are valued by the LIFO method and the balance of the Company’s inventories is valued by the FIFO method. | |
Investments | ' |
Investments: | |
Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. The Company held short-term investments as of December 31, 2013 and 2012 with a fair value and cost basis of $13.9 million and $17.3 million, respectively, which were included in other current assets on the Consolidated Balance Sheets. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment: | |
Property, plant and equipment, net is valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings, three to ten years for computer software and three to 20 years for machinery and equipment. | |
The impairment of long-lived assets is evaluated when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time to reduce the asset to the lower of its fair value or its net book value. | |
Goodwill and Other Intangible Assets | ' |
Goodwill and Other Intangible Assets: | |
Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from one to 20 years. Goodwill and indefinite-lived intangible assets not subject to amortization are tested for impairment at least annually. The Company performs its annual impairment test as of October first, after the annual forecasting process is completed. Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying values may not be recoverable in accordance with accounting rules related to goodwill and other intangible assets. | |
Effective October 1, 2011, the Company adopted the provisions of Accounting Standards Update (ASU) 2011-08, “Intangibles–Goodwill and Other (Topic 350): Testing Goodwill for Impairment,” which allows companies to assess qualitative factors to determine if goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test. Effective October 1, 2012, the Company adopted the provisions of ASU 2012-02, “Intangibles–Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment,” which allows companies to assess qualitative factors to determine if indefinite-lived intangibles might be impaired and whether it is necessary to perform the two-step impairment test. | |
Product Warranties | ' |
Product Warranties: | |
The Company provides limited warranties on certain of its products. The Company accrues liabilities for warranties based upon specific claims and a review of historical warranty claim experience in accordance with accounting rules relating to contingent liabilities. The Company records and accounts for its warranty reserve based on specific claim incidents. Should the Company become aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim data and historical experience change. | |
Income Taxes | ' |
Income Taxes: | |
The Company accounts for income taxes in accordance with Accounting Standards Codification (ASC) 740, “Income Taxes.” Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. The Company recognizes valuation allowances against deferred tax assets by tax jurisdiction when it is more likely than not that such assets will not be realized. Accruals for uncertain tax positions are provided for in accordance with ASC 740-10. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. | |
Foreign Currency Translation | ' |
Foreign Currency Translation: | |
Assets and liabilities of subsidiaries, other than those located in highly inflationary countries, are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rates of exchange prevailing during the year. The related translation adjustments are reflected as a separate component of accumulated other comprehensive loss. Gains and losses resulting from foreign currency transactions and the translation of financial statements of subsidiaries in highly inflationary countries are included in the Consolidated Statements of Income. The Company realized foreign currency exchange losses of $9.2 million, $6.9 million and $1.4 million in 2013, 2012 and 2011, respectively. | |
Pension and Other Postretirement Benefits | ' |
Pension and Other Postretirement Benefits: | |
The Company recognizes an overfunded status or underfunded status (i.e., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and postretirement benefit plans on the Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive loss, net of tax. The adjustment to accumulated other comprehensive loss represents the current year net unrecognized actuarial gains and losses and unrecognized prior service costs. These amounts will be recognized in future periods as net periodic benefit cost. | |
Stock-Based Compensation | ' |
Stock-Based Compensation: | |
The Company recognizes stock-based compensation expense based on the grant date fair value of the stock-based awards over their required vesting period. Stock options are issued with an exercise price equal to the opening market price of Timken common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. The fair value of stock-based awards that will settle in Timken common shares, other than stock options, is based on the opening market price of Timken common shares on the grant date. The fair value of stock-based awards that will settle in cash are remeasured at each reporting period until settlement of the awards. | |
Earnings Per Share | ' |
Earnings Per Share: | |
Unvested restricted shares provide for the payment of nonforfeitable dividends. The Company considers these awards as participating securities. Earnings per share are computed using the two-class method. Basic earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding, adjusted for the dilutive impact of outstanding stock-based awards. | |
Derivative Instruments | ' |
Derivative Instruments: | |
The Company recognizes all derivatives on the Consolidated Balance Sheets at fair value. Derivatives that are not designated as hedges must be adjusted to fair value through earnings. If the derivative is designated and qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in other comprehensive loss until the hedged item is recognized in earnings. The Company’s holdings of forward foreign currency exchange contracts qualify as derivatives pursuant to the criteria established in derivative accounting guidance, and the Company has designated certain of those derivatives as hedges. | |
New Accounting Pronouncements | ' |
Recent Accounting Pronouncements: | |
In February 2013, the Financial Accounting Standards Board (FASB) issued ASU No. 2013-02, Comprehensive Income (Topic 220): "Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income," effective for annual and interim reporting periods beginning after December 15, 2012. The new accounting rules require all U.S. public companies to report the effect of items reclassified out of accumulated other comprehensive income on the respective line items of net income, net of tax, either on the face of the financial statements where net income is presented or in a tabular format in the notes to the financial statements. Effective January 1, 2013, the Company adopted ASU No. 2013-02. The new accounting rules expand the disclosure of other comprehensive income and had no impact on the Company's results of operations and financial condition. See Note 4 - Accumulated Other Comprehensive Income (Loss) for additional information on the new disclosure. | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. The new accounting rules are effective for annual and interim reporting periods beginning after December 15, 2013. The Company is currently evaluating the impact of adopting ASU 2013-11, if any, on the Company's results of operations and financial condition. | |
Use of Estimates | ' |
Use of Estimates: | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. These estimates and assumptions are reviewed and updated regularly to reflect recent experience. | |
Reclassifications | ' |
Reclassifications: | |
Certain amounts reported in the 2012 Consolidated Financial Statements have been reclassified to correct an immaterial error. The Company reclassified $15.1 million from other current assets to restricted cash. In addition, the Company reclassified approximately $12 million from current deferred tax assets to non-current deferred tax assets. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Business Combinations and Divestitures [Abstract] | ' | |||||||||
Fair values of the assets acquired and liabilities assumed | ' | |||||||||
The purchase price allocations, net of cash acquired, and any subsequent purchase price adjustments for acquisitions in 2013, 2012 and 2011 are presented below: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Assets: | ||||||||||
Accounts receivable, net | $ | 10.6 | $ | 4.7 | $ | 25.6 | ||||
Inventories, net | 12.7 | 2.3 | 23.6 | |||||||
Deferred charges and prepaid expenses | 0.3 | 0.1 | 0.9 | |||||||
Other current assets | 0.1 | 0.2 | 0.1 | |||||||
Property, plant and equipment, net | 19.5 | 3 | 32.1 | |||||||
Goodwill | 18.1 | 7.1 | 83.3 | |||||||
Other intangible assets | 13 | 7.7 | 146.9 | |||||||
Other non-current assets | — | — | 0.6 | |||||||
Total assets acquired | $ | 74.3 | $ | 25.1 | $ | 313.1 | ||||
Liabilities: | ||||||||||
Accounts payable, trade | $ | 3.3 | $ | 2.3 | $ | 10.7 | ||||
Salaries, wages and benefits | 1.4 | 0.3 | 5.1 | |||||||
Other current liabilities | 0.9 | 1.8 | 5.2 | |||||||
Other non-current liabilities | 4.5 | — | — | |||||||
Total liabilities assumed | $ | 10.1 | $ | 4.4 | $ | 21 | ||||
Net assets acquired | $ | 64.2 | $ | 20.7 | $ | 292.1 | ||||
Business Acquisition Purchase price allocation identifiable intangible assets | ' | |||||||||
The following table summarizes the purchase price allocation for identifiable intangible assets acquired in 2013: | ||||||||||
Purchase | ||||||||||
Price Allocation | ||||||||||
Weighted- | ||||||||||
Average Life | ||||||||||
Trade name | $ | 1.1 | 13 years | |||||||
Technology / Know-how | 5.2 | 18 years | ||||||||
All customer relationships | 6.4 | 20 years | ||||||||
Non-compete agreements | 0.3 | 4 years | ||||||||
Total intangible assets | $ | 13 | ||||||||
The following table summarizes the final purchase price allocation for identifiable intangible assets acquired in 2012: | ||||||||||
Initial Purchase | Adjusted Purchase | |||||||||
Price Allocation | Price Allocation | |||||||||
Weighted- | Weighted- | |||||||||
Average Life | Average Life | |||||||||
Trade name | 1.2 | 8 years | 0.8 | 6 years | ||||||
Know how | 3.5 | 20 years | 3.4 | 20 years | ||||||
All customer relationships | 2.5 | 10 years | 3.5 | 9 years | ||||||
Non-compete agreements | 0.5 | 5 years | — | |||||||
Total intangible assets | $ | 7.7 | $ | 7.7 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Earnings Per Share [Abstract] | ' | |||||||||
Reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share | ' | |||||||||
The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the years ended December 31: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Numerator: | ||||||||||
Net Income Attributable to The Timken Company | $ | 262.7 | $ | 495.5 | $ | 454.3 | ||||
Less: undistributed earnings allocated to nonvested stock | (0.3 | ) | (1.5 | ) | (1.6 | ) | ||||
Net income available to common shareholders for basic earnings | $ | 262.4 | $ | 494 | $ | 452.7 | ||||
per share and diluted earnings per share | ||||||||||
Denominator: | ||||||||||
Weighted-average number of shares outstanding – basic | 94,989,561 | 96,671,613 | 97,451,064 | |||||||
Effect of dilutive securities: | ||||||||||
Stock options and awards - based on the treasury | 834,167 | 930,868 | 1,204,449 | |||||||
stock method | ||||||||||
Weighted-average number of shares outstanding, assuming | 95,823,728 | 97,602,481 | 98,655,513 | |||||||
dilution of stock options and awards | ||||||||||
Basic earnings per share | $ | 2.76 | $ | 5.11 | $ | 4.65 | ||||
Diluted earnings per share | $ | 2.74 | $ | 5.07 | $ | 4.59 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Accumulated Other Comprehensive Loss [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||
The following tables present details about components of accumulated other comprehensive income (loss) for the years ended December 31, 2013 and December 31, 2012 respectively: | ||||||||||||||||
Foreign currency | Pension and postretirement | Change in fair value of | Total | |||||||||||||
translation adjustments | liability adjustments | derivative financial instruments | ||||||||||||||
Balance at December 31, 2012 | $ | 49 | $ | (1,061.5 | ) | $ | (0.7 | ) | $ | (1,013.2 | ) | |||||
Other comprehensive (loss) income before | (19.0 | ) | 494.2 | 0.7 | 475.9 | |||||||||||
reclassifications, before income tax | ||||||||||||||||
Amounts reclassified from accumulated other | — | 130.6 | (0.4 | ) | 130.2 | |||||||||||
comprehensive income (loss), before income tax | ||||||||||||||||
Income tax benefit | — | (226.5 | ) | — | (226.5 | ) | ||||||||||
Net current period other comprehensive (loss) income, | (19.0 | ) | 398.3 | 0.3 | 379.6 | |||||||||||
net of income taxes | ||||||||||||||||
Non-controlling interest | 7.5 | — | — | 7.5 | ||||||||||||
Net current period comprehensive (loss) income, net of | (11.5 | ) | 398.3 | 0.3 | 387.1 | |||||||||||
income taxes and non-controlling interest | ||||||||||||||||
Balance at December 31, 2013 | $ | 37.5 | $ | (663.2 | ) | $ | (0.4 | ) | $ | (626.1 | ) | |||||
Foreign currency | Pension and postretirement | Change in fair value of | Change in fair value of | Total | ||||||||||||
translation adjustments | liability adjustments | marketable securities | derivative financial instruments | |||||||||||||
Balance, December 31, 2011 | $ | 38.5 | $ | (928.3 | ) | $ | 0.6 | $ | (0.3 | ) | $ | (889.5 | ) | |||
Other comprehensive income (loss) before | 10.5 | (288.9 | ) | — | 0.4 | (278.0 | ) | |||||||||
reclassifications, before income tax | ||||||||||||||||
Amounts reclassified from accumulated | — | 100.4 | (1.2 | ) | (0.8 | ) | 98.4 | |||||||||
other comprehensive income (loss), before | ||||||||||||||||
income tax | ||||||||||||||||
Income tax expense | — | 55.3 | 0.4 | — | 55.7 | |||||||||||
Net current period other comprehensive | 10.5 | (133.2 | ) | (0.8 | ) | (0.4 | ) | (123.9 | ) | |||||||
(loss) income, net of income taxes | ||||||||||||||||
Non-controlling interest | — | — | 0.2 | — | 0.2 | |||||||||||
Net current period comprehensive (loss) | 10.5 | (133.2 | ) | (0.6 | ) | (0.4 | ) | (123.7 | ) | |||||||
income, net of income taxes and | ||||||||||||||||
non-controlling interest | ||||||||||||||||
Balance at December 31, 2012 | $ | 49 | $ | (1,061.5 | ) | $ | — | $ | (0.7 | ) | $ | (1,013.2 | ) | |||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Components of inventories | ' | ||||||
The components of inventories at December 31, 2013 and 2012 were as follows: | |||||||
2013 | 2012 | ||||||
Manufacturing supplies | $ | 59.7 | $ | 64.3 | |||
Raw materials | 94.5 | 110.7 | |||||
Work in process | 294.5 | 278.1 | |||||
Finished products | 381.5 | 430.4 | |||||
Subtotal | $ | 830.2 | $ | 883.5 | |||
Allowance for surplus and obsolete inventory | (20.3 | ) | (21.4 | ) | |||
Total Inventories, net | $ | 809.9 | $ | 862.1 | |||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Components of property, plant and equipment | ' | ||||||
The components of property, plant and equipment, net at December 31, 2013 and 2012 were as follows: | |||||||
2013 | 2012 | ||||||
Land and buildings | $ | 685 | $ | 653.8 | |||
Machinery and equipment | 3,393.10 | 3,138.30 | |||||
Subtotal | $ | 4,078.10 | $ | 3,792.10 | |||
Less allowances for depreciation | (2,520.0 | ) | (2,386.8 | ) | |||
Property, Plant and Equipment, net | $ | 1,558.10 | $ | 1,405.30 | |||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||
Change in the carrying amount of goodwill | ' | ||||||||||||||||||
Year ended December 31, 2012: | |||||||||||||||||||
Mobile Industries | Process | Aerospace | Steel | Total | |||||||||||||||
Industries | |||||||||||||||||||
Beginning Balance | $ | 16.9 | $ | 141.1 | $ | 162.1 | $ | 12.6 | $ | 332.7 | |||||||||
Acquisitions | 0.8 | 6.3 | — | — | 7.1 | ||||||||||||||
Other | — | (1.0 | ) | 0.1 | — | (0.9 | ) | ||||||||||||
Ending Balance | $ | 17.7 | $ | 146.4 | $ | 162.2 | $ | 12.6 | $ | 338.9 | |||||||||
Changes in the carrying value of goodwill were as follows: | |||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||
Mobile Industries | Process | Aerospace | Steel | Total | |||||||||||||||
Industries | |||||||||||||||||||
Beginning Balance | $ | 17.7 | $ | 146.4 | $ | 162.2 | $ | 12.6 | $ | 338.9 | |||||||||
Acquisitions | 4.3 | 13.8 | — | — | 18.1 | ||||||||||||||
Other | 0.3 | 1.2 | 0.2 | — | 1.7 | ||||||||||||||
Ending Balance | $ | 22.3 | $ | 161.4 | $ | 162.4 | $ | 12.6 | $ | 358.7 | |||||||||
Intangible assets | ' | ||||||||||||||||||
The following table displays intangible assets as of December 31: | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||
Intangible assets subject | |||||||||||||||||||
to amortization: | |||||||||||||||||||
Customer relationships | $ | 167.3 | $ | 51.3 | $ | 116 | $ | 159.6 | $ | 38.1 | $ | 121.5 | |||||||
Know-how | 31.4 | 4.4 | 27 | 26.1 | 2.8 | 23.3 | |||||||||||||
Industrial license agreements | 0.1 | 0.1 | — | 0.2 | 0.1 | 0.1 | |||||||||||||
Land-use rights | 8.9 | 4.5 | 4.4 | 8.6 | 4.1 | 4.5 | |||||||||||||
Patents | 2.3 | 1.8 | 0.5 | 2.5 | 1.8 | 0.7 | |||||||||||||
Technology use | 46.2 | 13.5 | 32.7 | 47 | 11.5 | 35.5 | |||||||||||||
Trademarks | 4.6 | 2.7 | 1.9 | 4.2 | 3.4 | 0.8 | |||||||||||||
PMA licenses | 8.8 | 4 | 4.8 | 8.8 | 3.6 | 5.2 | |||||||||||||
Non-compete agreements | 4.2 | 3.8 | 0.4 | 4.4 | 3.3 | 1.1 | |||||||||||||
Unpatented technology | 7.2 | 7.2 | — | 7.2 | 6.7 | 0.5 | |||||||||||||
$ | 281 | $ | 93.3 | $ | 187.7 | $ | 268.6 | $ | 75.4 | $ | 193.2 | ||||||||
Intangible assets not | |||||||||||||||||||
subject to amortization: | |||||||||||||||||||
Tradename | $ | 17.2 | $ | — | $ | 17.2 | $ | 17.3 | $ | — | $ | 17.3 | |||||||
FAA air agency | 14.2 | — | 14.2 | 14.2 | — | 14.2 | |||||||||||||
certificates | |||||||||||||||||||
$ | 31.4 | $ | — | $ | 31.4 | $ | 31.5 | $ | — | $ | 31.5 | ||||||||
Total intangible assets | $ | 312.4 | $ | 93.3 | $ | 219.1 | $ | 300.1 | $ | 75.4 | $ | 224.7 | |||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Short-term debt | ' | ||||||
Short-term debt for the years ended December 31 was as follows: | |||||||
2013 | 2012 | ||||||
Variable-rate lines of credit for certain of the Company’s foreign subsidiaries with | $ | 18.6 | $ | 14.3 | |||
various banks with interest rates ranging from 0.87% to 4.86% and 0.61% to | |||||||
2.28% at December 31, 2013 and 2012, respectively | |||||||
Short-term debt | $ | 18.6 | $ | 14.3 | |||
Long-term debt | ' | ||||||
Long-term debt for the years ended December 31 was as follows: | |||||||
2013 | 2012 | ||||||
Fixed-rate Medium-Term Notes, Series A, mature at various dates through | $ | 175 | $ | 175 | |||
May 2028, with interest rates ranging from 6.74% to 7.76% | |||||||
Fixed-rate Senior Unsecured Notes, maturing on September 15, 2014, with an | 249.9 | 249.9 | |||||
interest rate of 6.0% | |||||||
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, | 12.2 | 12.2 | |||||
maturing on November 1, 2025 (0.06% at December 31, 2013) | |||||||
Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, | 9.5 | 9.5 | |||||
maturing on November 1, 2025 (0.15% at December 31, 2013) | |||||||
Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing | 8.5 | 8.5 | |||||
on June 1, 2033 (0.15% at December 31, 2013) | |||||||
Other | 2.2 | 9.6 | |||||
Total debt | $ | 457.3 | $ | 464.7 | |||
Less current maturities | 250.7 | 9.6 | |||||
Long-term debt | $ | 206.6 | $ | 455.1 | |||
Contingencies_Contingencies_Ta
Contingencies Contingencies (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Roll forward of product warranty accruals | ' | ||||||
The following is a rollforward of the warranty reserves for 2013 and 2012: | |||||||
2013 | 2012 | ||||||
Beginning balance, January 1 | $ | 4.3 | $ | 11.7 | |||
Expense (Income) | 4.8 | (0.9 | ) | ||||
Payments | (4.8 | ) | (6.5 | ) | |||
Ending balance, December 31 | $ | 4.3 | $ | 4.3 | |||
Impairment_and_Restructuring_C1
Impairment and Restructuring Charges (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Impairment and Restructuring Charges by Segment | ' | |||||||||||||||
Impairment and restructuring charges by segment were as follows: | ||||||||||||||||
Year ended December 31, 2013: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | — | $ | 0.1 | $ | — | $ | 0.6 | $ | 0.7 | ||||||
Severance expense and related benefit costs | 12.5 | 2.6 | 1.2 | — | 16.3 | |||||||||||
Exit costs | (1.5 | ) | 0.9 | — | — | (0.6 | ) | |||||||||
Total | $ | 11 | $ | 3.6 | $ | 1.2 | $ | 0.6 | $ | 16.4 | ||||||
Year ended December 31, 2012: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | 6.5 | $ | 0.1 | $ | — | $ | — | $ | 6.6 | ||||||
Severance expense and related benefit costs | 16.8 | 1.6 | — | — | 18.4 | |||||||||||
Exit costs | 4.2 | 0.3 | — | — | 4.5 | |||||||||||
Total | $ | 27.5 | $ | 2 | $ | — | $ | — | $ | 29.5 | ||||||
Year ended December 31, 2011: | ||||||||||||||||
Mobile | Process | Aerospace | Steel | Total | ||||||||||||
Industries | Industries | |||||||||||||||
Impairment charges | $ | 0.2 | $ | 0.3 | $ | — | $ | — | $ | 0.5 | ||||||
Severance expense and related benefit costs | 0.2 | (0.1 | ) | — | 0.1 | |||||||||||
Exit costs | 13 | 0.3 | 0.5 | — | 13.8 | |||||||||||
Total | $ | 13.4 | $ | 0.5 | $ | 0.5 | $ | — | $ | 14.4 | ||||||
Roll Forward consolidated restructuring accrual | ' | |||||||||||||||
The following is a rollforward of the consolidated restructuring accrual for the years ended December 31: | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning balance, January 1 | $ | 17.6 | $ | 21.8 | ||||||||||||
Expense | 8.7 | 12.2 | ||||||||||||||
Payments | (15.5 | ) | (16.4 | ) | ||||||||||||
Ending balance, December 31 | $ | 10.8 | $ | 17.6 | ||||||||||||
Separation_Costs_Tables
Separation Costs (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Restructuring and Related Activities [Abstract] | ' | |||
Schedule of separation costs | ' | |||
Separation costs for the year ended December 31 were as follows: | ||||
2013 | ||||
Severance expense and related benefit costs | $ | 5.6 | ||
Professional fees | 7.3 | |||
Exit costs | 0.1 | |||
Total | $ | 13 | ||
Rollforward of the Consolidated Separation Accrual | ' | |||
The following is a rollforward of the consolidated separation accrual for the year ended December 31: | ||||
2013 | ||||
Beginning balance, January 1 | $ | — | ||
Expense | 13 | |||
Payments | (7.3 | ) | ||
Ending balance, December 31 | $ | 5.7 | ||
Stock_Compensation_Plans_Table
Stock Compensation Plans (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||
Summary of significant stock options granted | ' | |||||||||
The fair value of stock option awards granted during 2013, 2012 and 2011 was estimated at the date of grant using a Black-Scholes option-pricing method with the following assumptions: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Weighted-average fair value per option | $ | 21.17 | $ | 20.16 | $ | 19.93 | ||||
Risk-free interest rate | 1.09 | % | 1.15 | % | 2.76 | % | ||||
Dividend yield | 2.29 | % | 1.94 | % | 2 | % | ||||
Expected stock volatility | 50.66 | % | 50 | % | 48.1 | % | ||||
Expected life - years | 6 | 6 | 6 | |||||||
Summary of stock option activity | ' | |||||||||
A summary of option activity for the year ended December 31, 2013 is presented below: | ||||||||||
Number of | Weighted-average | Weighted-average | Aggregate Intrinsic Value | |||||||
Shares | Exercise Price | Remaining | (millions) | |||||||
Contractual Term | ||||||||||
Outstanding - beginning of year | 3,717,340 | $ | 33.59 | |||||||
Granted | 614,480 | 56.27 | ||||||||
Exercised | (928,803 | ) | 23.09 | |||||||
Canceled or expired | (18,330 | ) | 49.86 | |||||||
Outstanding - end of year | 3,384,687 | $ | 40.5 | 7 years | $ | 49.5 | ||||
Options expected to vest | 2,740,589 | $ | 36.93 | 6 years | $ | 49 | ||||
Options exercisable | 1,711,482 | $ | 32.94 | 5 years | $ | 37.9 | ||||
Summary of restricted share activity | ' | |||||||||
A summary of restricted share activity, including restricted shares, deferred shares, strategic performance shares that will settle in common shares and strategic shares that will settle in common shares, for the year ended December 31, 2013 is as follows: | ||||||||||
Number of Shares | Weighted-average | |||||||||
Grant Date Fair Value | ||||||||||
Outstanding - beginning of year | 524,064 | $ | 36.23 | |||||||
Granted | 111,640 | 55.95 | ||||||||
Vested | (221,542 | ) | 32.16 | |||||||
Canceled or expired | (17,110 | ) | 47.24 | |||||||
Outstanding - end of year | 397,052 | $ | 43.57 | |||||||
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) (Pension Plan, Defined Benefit [Member]) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Pension Plan, Defined Benefit [Member] | ' | ||||||||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ||||||||||||
Net periodic benefit cost for the Company's retirement benefit plans | ' | ||||||||||||
The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 38.5 | $ | 34.7 | $ | 32.2 | |||||||
Interest cost | 134.7 | 151.1 | 158.6 | ||||||||||
Expected return on plan assets | (232.0 | ) | (221.1 | ) | (214.9 | ) | |||||||
Amortization of prior service cost | 4.5 | 9.3 | 9.4 | ||||||||||
Amortization of net actuarial loss | 116.8 | 83.3 | 56 | ||||||||||
Pension curtailments and settlements | 7.2 | 11.6 | — | ||||||||||
Net periodic benefit cost | $ | 69.7 | $ | 68.9 | $ | 41.3 | |||||||
Pension Benefits | ' | ||||||||||||
The following table summarizes assumptions used to measure the benefit obligation for the defined benefit pension plans at December 31: | |||||||||||||
Assumptions | 2013 | 2012 | |||||||||||
U.S. Plans: | |||||||||||||
Discount rate | 5.02 | % | 4 | % | |||||||||
Future compensation assumption | 2.00% to 3.00% | 2.00% to 3.00% | |||||||||||
International Plans: | |||||||||||||
Discount rate | 3.25% to 9.75% | 2.75% to 9.5% | |||||||||||
Future compensation assumption | 2.30% to 8.00% | 2.3% to 8.0% | |||||||||||
Assumptions | 2013 | 2012 | 2011 | ||||||||||
U.S. Plans: | |||||||||||||
Discount rate | 4 | % | 5 | % | 5.75 | % | |||||||
Future compensation assumption | 2.00% to 3.00% | 2.00% to 3.00% | 2.00% to 3.00% | ||||||||||
Expected long-term return on plan assets | 8 | % | 8.25 | % | 8.5 | % | |||||||
International Plans: | |||||||||||||
Discount rate | 2.75% to 9.0% | 4.75% to 9.50% | 4.75% to 9.00% | ||||||||||
Future compensation assumption | 2.30% to 8.00% | 2.5% to 8.00% | 2.50% to 8.84% | ||||||||||
Expected long-term return on plan assets | 3.25% to 8.50% | 3.25% to 9.00% | 3.50% to 9.00% | ||||||||||
Defined Benefit Plans for Change in Benefit Obligations | ' | ||||||||||||
The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2013 and 2012: | |||||||||||||
2013 | 2012 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 3,496.30 | $ | 3,124.60 | |||||||||
Service cost | 38.5 | 34.7 | |||||||||||
Interest cost | 134.7 | 151.1 | |||||||||||
Amendments | — | (0.3 | ) | ||||||||||
Actuarial (gains) losses | (274.4 | ) | 394.1 | ||||||||||
Employee contributions | 0.2 | 0.2 | |||||||||||
International plan exchange rate change | 5.3 | 18.2 | |||||||||||
Curtailment loss | — | 9.5 | |||||||||||
Benefits paid | (267.1 | ) | (235.8 | ) | |||||||||
Benefit obligation at end of year | $ | 3,133.50 | $ | 3,496.30 | |||||||||
Defined Benefit Plans for Change in Plan Assets | ' | ||||||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 3,098.40 | $ | 2,631.90 | |||||||||
Actual return on plan assets | 334 | 361.7 | |||||||||||
Employee contributions | 0.2 | 0.2 | |||||||||||
Company contributions / payments | 120.7 | 325.8 | |||||||||||
International plan exchange rate change | 4.4 | 14.6 | |||||||||||
Benefits paid | (267.1 | ) | (235.8 | ) | |||||||||
Fair value of plan assets at end of year | 3,290.60 | 3,098.40 | |||||||||||
Funded status at end of year | $ | 157.1 | $ | (397.9 | ) | ||||||||
Defined Benefit Plans Amounts recognized on the Consolidated Balance Sheets | ' | ||||||||||||
Amounts recognized on the Consolidated Balance Sheets: | |||||||||||||
Non-current assets | $ | 342.6 | $ | 0.3 | |||||||||
Current liabilities | (6.5 | ) | (6.8 | ) | |||||||||
Non-current liabilities | (179.0 | ) | (391.4 | ) | |||||||||
$ | 157.1 | $ | (397.9 | ) | |||||||||
Defined Benefit Plans Amounts recognized in accumulated other comprehensive income | ' | ||||||||||||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||
Net actuarial loss | $ | 989.1 | $ | 1,489.40 | |||||||||
Net prior service cost | 19 | 23.5 | |||||||||||
Accumulated other comprehensive loss | $ | 1,008.10 | $ | 1,512.90 | |||||||||
Changes in plan assets and benefit obligations recognized in accumulated other comprehensive income | ' | ||||||||||||
Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss (AOCL): | 2013 | 2012 | |||||||||||
AOCI at beginning of year | $ | 1,512.90 | $ | 1,348.20 | |||||||||
Net actuarial (gain) loss | (376.3 | ) | 263.1 | ||||||||||
Prior service cost | — | (0.3 | ) | ||||||||||
Recognized net actuarial loss | (116.8 | ) | (83.3 | ) | |||||||||
Recognized prior service cost | (4.5 | ) | (9.3 | ) | |||||||||
Loss recognized due to curtailment | (7.2 | ) | (11.6 | ) | |||||||||
Foreign currency impact | — | 6.1 | |||||||||||
Total recognized in accumulated other comprehensive loss at December 31 | $ | 1,008.10 | $ | 1,512.90 | |||||||||
Target assets allocation and actual asset allocations for US pension plan assets | ' | ||||||||||||
The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2013 and 2012, was as follows: | |||||||||||||
Current Target | Percentage of Pension Plan | ||||||||||||
Allocation | Assets at December 31, | ||||||||||||
Asset Category | 2013 | 2012 | |||||||||||
Equity securities | 35% | to | 52% | 43% | 47% | ||||||||
Debt securities | 35% | to | 50% | 45% | 40% | ||||||||
Other | 9% | to | 19% | 12% | 13% | ||||||||
Total | 100% | 100% | |||||||||||
Fair value assets measured on recurring basis | ' | ||||||||||||
The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 364 | $ | 3.3 | $ | 360.7 | $ | — | |||||
Government and agency securities | 188.4 | 175 | 13.4 | — | |||||||||
Corporate bonds - investment grade | 301.1 | — | 301.1 | — | |||||||||
Corporate bonds - non-investment grade | 110.1 | — | 110.1 | — | |||||||||
Equity securities - U.S. companies | 300.6 | 299.2 | 1.4 | — | |||||||||
Equity securities - international companies | 311.5 | 311.5 | — | — | |||||||||
Asset backed securities | 38.2 | — | 38.2 | — | |||||||||
Common collective funds - domestic equities | 195.6 | — | 195.6 | — | |||||||||
Common collective funds - international equities | 387.5 | — | 387.5 | — | |||||||||
Common collective funds - fixed income | 625.4 | — | 625.4 | — | |||||||||
Common collective funds - other | 87.2 | — | 87.2 | — | |||||||||
Limited partnerships | 78.8 | — | — | 78.8 | |||||||||
Real estate partnerships | 145.6 | — | 124.5 | 21.1 | |||||||||
Mutual funds - real estate | 155.9 | 155.9 | — | — | |||||||||
Other assets | 0.7 | — | 0.7 | — | |||||||||
Total Assets | $ | 3,290.60 | $ | 944.9 | $ | 2,245.80 | $ | 99.9 | |||||
The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 80 | $ | 3.1 | $ | 76.9 | $ | — | |||||
Government and agency securities | 226.2 | 193.9 | 32.3 | — | |||||||||
Corporate bonds - investment grade | 263.7 | — | 263.7 | — | |||||||||
Corporate bonds - non-investment grade | 103.9 | — | 103.9 | — | |||||||||
Equity securities - U.S. companies | 347.6 | 347.2 | 0.4 | — | |||||||||
Equity securities - international companies | 273.6 | 273.6 | — | — | |||||||||
Asset backed securities | 55.4 | — | 55.4 | — | |||||||||
Common collective funds - domestic equities | 350.1 | — | 350.1 | — | |||||||||
Common collective funds - international equities | 365.3 | — | 365.3 | — | |||||||||
Common collective funds - fixed income | 620.1 | — | 620.1 | — | |||||||||
Common collective funds - other | 39.7 | — | 39.7 | — | |||||||||
Limited partnerships | 79.9 | — | — | 79.9 | |||||||||
Real estate partnerships | 128.6 | — | 112.3 | 16.3 | |||||||||
Mutual funds - real estate | 163.6 | 163.6 | — | — | |||||||||
Other assets | 0.7 | — | 0.7 | — | |||||||||
Total Assets | $ | 3,098.40 | $ | 981.4 | $ | 2,020.80 | $ | 96.2 | |||||
Summary of changes in the fair value of the plan's level three assets | ' | ||||||||||||
The table below sets forth a summary of changes in the fair value of the level 3 assets by fund for the year ended December 31, 2013: | |||||||||||||
Limited Partnerships | Real Estate | Total | |||||||||||
Beginning balance, January 1 | $ | 79.9 | $ | 16.3 | $ | 96.2 | |||||||
Purchases | 5.3 | 3.5 | 8.8 | ||||||||||
Sales | (11.5 | ) | (0.6 | ) | (12.1 | ) | |||||||
Realized losses | (6.2 | ) | (0.1 | ) | (6.3 | ) | |||||||
Unrealized gains | 11.3 | 2 | 13.3 | ||||||||||
Ending balance, December 31 | $ | 78.8 | $ | 21.1 | $ | 99.9 | |||||||
The table below sets forth a summary of changes in the fair value of the level 3 assets by fund for the year ended December 31, 2012: | |||||||||||||
Limited Partnerships | Real Estate | Total | |||||||||||
Beginning balance, January 1 | $ | 83.6 | $ | 6.6 | $ | 90.2 | |||||||
Purchases | 7.1 | 11.3 | 18.4 | ||||||||||
Sales | (8.5 | ) | (1.5 | ) | (10.0 | ) | |||||||
Realized losses | (3.4 | ) | — | (3.4 | ) | ||||||||
Unrealized gains (losses) | 1.1 | (0.1 | ) | 1 | |||||||||
Ending balance, December 31 | $ | 79.9 | $ | 16.3 | $ | 96.2 | |||||||
Employer contributions to defined benefit plans | ' | ||||||||||||
Employer Contributions to Defined Benefit Plans | |||||||||||||
2012 | $ | 325.8 | |||||||||||
2013 | 120.7 | ||||||||||||
2014 (planned) | 20 | ||||||||||||
Future pension benefit payments | ' | ||||||||||||
Future benefit payments are expected to be as follows: | |||||||||||||
Benefit Payments | |||||||||||||
2014 | $ | 233.4 | |||||||||||
2015 | 253.9 | ||||||||||||
2016 | 223.7 | ||||||||||||
2017 | 224 | ||||||||||||
2018 | 231.9 | ||||||||||||
2019-2023 | 1,094.40 | ||||||||||||
Postretirement_Benefit_Plans_T
Postretirement Benefit Plans (Tables) (Postretirement Benefit Plans [Member]) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Postretirement Benefit Plans [Member] | ' | ||||||||||||
Post Retirement Benefit Plans | ' | ||||||||||||
Net periodic benefit cost for the Company's Postretirement benefit plans | ' | ||||||||||||
The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Components of net periodic benefit cost: | |||||||||||||
Service cost | $ | 2.9 | $ | 2.5 | $ | 2.5 | |||||||
Interest cost | 21.7 | 28.4 | 32.9 | ||||||||||
Expected return on plan assets | (11.1 | ) | (10.6 | ) | (4.4 | ) | |||||||
Amortization of prior service credit | (0.2 | ) | (0.2 | ) | (0.3 | ) | |||||||
Amortization of net actuarial loss | 2.3 | 2.5 | 2.9 | ||||||||||
Net periodic benefit cost | $ | 15.6 | $ | 22.6 | $ | 33.6 | |||||||
Postretirement Benefit Plans Assumptions | ' | ||||||||||||
Assumptions: | 2013 | 2012 | 2011 | ||||||||||
Discount rate | 3.8 | % | 4.85 | % | 5.5 | % | |||||||
Rate of return | 5 | % | 5 | % | 5 | % | |||||||
The following table summarizes assumptions used to measure the benefit obligation for the postretirement benefit plans at December 31: | |||||||||||||
Assumptions: | 2013 | 2012 | |||||||||||
Discount rate | 4.59 | % | 3.8 | % | |||||||||
Rate of return | 5 | % | 5 | % | |||||||||
Defined benefit pension and postretirement benefits for change in benefit obligations | ' | ||||||||||||
The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets of the defined benefit postretirement benefit plans as of December 31, 2013 and 2012: | |||||||||||||
2013 | 2012 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation at beginning of year | $ | 639.2 | $ | 628.6 | |||||||||
Service cost | 2.9 | 2.5 | |||||||||||
Interest cost | 21.7 | 28.4 | |||||||||||
Amendments | — | 0.9 | |||||||||||
Actuarial (gains) losses | (101.9 | ) | 24.5 | ||||||||||
Benefits paid | (46.3 | ) | (45.7 | ) | |||||||||
Benefit obligation at end of year | $ | 515.6 | $ | 639.2 | |||||||||
Defined benefit and postretirement benefit for Change in Plan Assets | ' | ||||||||||||
Change in plan assets: | |||||||||||||
Fair value of plan assets at beginning of year | $ | 221.9 | $ | 170.9 | |||||||||
Actual return on plan assets | 27.2 | 9.8 | |||||||||||
Company contributions / payments | 37.3 | 86.9 | |||||||||||
Benefits paid | (46.3 | ) | (45.7 | ) | |||||||||
Fair value of plan assets at end of year | 240.1 | 221.9 | |||||||||||
Funded status at end of year | $ | (275.5 | ) | $ | (417.3 | ) | |||||||
Defined Benefit and postretirement benefit for Change in Plan Assets Amounts recognized on the Consolidated Balance Sheets | ' | ||||||||||||
Amounts recognized on the Consolidated Balance Sheets: | |||||||||||||
Current liabilities | $ | (41.6 | ) | $ | (45.5 | ) | |||||||
Non-current liabilities | (233.9 | ) | (371.8 | ) | |||||||||
$ | (275.5 | ) | $ | (417.3 | ) | ||||||||
Defined Benefit and postretirement benefit for Change in Plan Assets Amounts recognized in accumulated other Comprehensive income | ' | ||||||||||||
Amounts recognized in accumulated other comprehensive loss: | |||||||||||||
Net actuarial loss | $ | 5.5 | $ | 125.7 | |||||||||
Net prior service cost | 7.8 | 7.6 | |||||||||||
Accumulated other comprehensive loss | $ | 13.3 | $ | 133.3 | |||||||||
Changes in plan assets and benefit obligations recognized in accumulated other comprehensive income (AOCI) | ' | ||||||||||||
Changes in plan assets and benefit obligations recognized in AOCL: | |||||||||||||
AOCI at beginning of year | $ | 133.3 | $ | 109.5 | |||||||||
Net actuarial (gain) loss | (117.9 | ) | 25.2 | ||||||||||
Prior service cost | — | 0.9 | |||||||||||
Recognized net actuarial loss | (2.3 | ) | (2.5 | ) | |||||||||
Recognized prior service credit | 0.2 | 0.2 | |||||||||||
Total recognized in accumulated other comprehensive loss at December 31 | $ | 13.3 | $ | 133.3 | |||||||||
Target assets allocation and actual asset allocations for US pension plan assets | ' | ||||||||||||
The Company’s target allocation for the VEBA trust assets, as well as the actual VEBA trust asset allocation as of December 31, 2013 and 2012, was as follows: | |||||||||||||
Current Target | Percentage of VEBA Assets | ||||||||||||
Allocation | at December 31, | ||||||||||||
Asset Category | 2013 | 2012 | |||||||||||
Equity securities | 45% | to | 55% | 55% | 49% | ||||||||
Debt securities | 45% | to | 55% | 45% | 51% | ||||||||
Total | 100% | 100% | |||||||||||
Fair value assets measured on recurring basis | ' | ||||||||||||
The following table presents the fair value hierarchy for those investments of the Company’s VEBA trust assets measured at fair value on a recurring basis as of December 31, 2013: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 2.9 | $ | — | $ | 2.9 | $ | — | |||||
Common Collective fund - U.S. equities | 82.7 | — | 82.7 | — | |||||||||
Common Collective fund - international equities | 49.7 | — | 49.7 | — | |||||||||
Common collective funds - fixed income | 104.8 | — | 104.8 | — | |||||||||
Total Assets | $ | 240.1 | $ | — | $ | 240.1 | $ | — | |||||
The following table presents the fair value hierarchy for those investments of the Company’s VEBA trust assets measured at fair value on a recurring basis as of December 31, 2012: | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 2.1 | $ | — | $ | 2.1 | $ | — | |||||
Common Collective fund - U.S. equities | 65.6 | — | 65.6 | — | |||||||||
Common Collective fund - international equities | 43.4 | — | 43.4 | — | |||||||||
Common collective funds - fixed income | 110.8 | — | 110.8 | — | |||||||||
Total Assets | $ | 221.9 | $ | — | $ | 221.9 | $ | — | |||||
Employer contributions to defined postretirement benefit plans | ' | ||||||||||||
Employer Contributions to Postretirement Benefit Plans: | |||||||||||||
2012 | $ | 50 | |||||||||||
2013 | — | ||||||||||||
2014 (planned) | — | ||||||||||||
Future pension benefit payments | ' | ||||||||||||
Future benefit payments are expected to be as follows: | |||||||||||||
Gross | Expected | Net Including | |||||||||||
Medicare | Medicare | ||||||||||||
Subsidies | Subsidies | ||||||||||||
2014 | $ | 53.6 | $ | 2.7 | $ | 50.9 | |||||||
2015 | 52 | 2.9 | 49.1 | ||||||||||
2016 | 50.5 | 3.1 | 47.4 | ||||||||||
2017 | 49 | 3.2 | 45.8 | ||||||||||
2018 | 47.6 | 3.2 | 44.4 | ||||||||||
2019-2023 | 206.6 | 15.7 | 190.9 | ||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Segment Reporting [Abstract] | ' | |||||||||
Geographic wise financial information | ' | |||||||||
Geographic Financial Information: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net sales: | ||||||||||
United States | $ | 2,887.70 | $ | 3,420.30 | $ | 3,494.60 | ||||
Canada & Mexico | 258.9 | 275.1 | 268.4 | |||||||
South America | 141.8 | 153.5 | 186 | |||||||
Europe / Middle East / Africa | 574 | 594.2 | 652.3 | |||||||
Asia-Pacific | 478.8 | 543.9 | 568.9 | |||||||
$ | 4,341.20 | $ | 4,987.00 | $ | 5,170.20 | |||||
Long-lived assets: | ||||||||||
United States | $ | 1,199.40 | $ | 1,055.70 | $ | 963.1 | ||||
Canada & Mexico | 12.6 | 6.1 | 16.3 | |||||||
South America | 2.1 | 4.4 | 6.2 | |||||||
Europe / Middle East / Africa | 105.5 | 101.6 | 102 | |||||||
Asia-Pacific | 238.5 | 237.5 | 221.3 | |||||||
$ | 1,558.10 | $ | 1,405.30 | $ | 1,308.90 | |||||
Segment wise financial performance | ' | |||||||||
The following tables provide segment financial information and a reconciliation of segment results to consolidated results: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Net sales to external customers: | ||||||||||
Mobile Industries | $ | 1,474.30 | $ | 1,675.00 | $ | 1,768.90 | ||||
Process Industries | 1,231.70 | 1,337.60 | 1,240.50 | |||||||
Aerospace | 329.5 | 346.9 | 324.1 | |||||||
Steel | 1,305.70 | 1,627.50 | 1,836.70 | |||||||
$ | 4,341.20 | $ | 4,987.00 | $ | 5,170.20 | |||||
Intersegment sales: | ||||||||||
Mobile Industries | $ | 1.1 | $ | 0.5 | $ | 0.5 | ||||
Process Industries | 3.9 | 5.7 | 4.1 | |||||||
Steel | 75.1 | 101.2 | 119.8 | |||||||
$ | 80.1 | $ | 107.4 | $ | 124.4 | |||||
Segment EBIT: | ||||||||||
Mobile Industries | $ | 164.7 | $ | 208.1 | $ | 261.8 | ||||
Process Industries | 201.9 | 274.9 | 274.2 | |||||||
Aerospace | 26.6 | 36.3 | 5.1 | |||||||
Steel | 140.2 | 251.8 | 267.4 | |||||||
Total EBIT, for reportable segments | $ | 533.4 | $ | 771.1 | $ | 808.5 | ||||
Unallocated corporate expenses | (82.5 | ) | (84.4 | ) | (80.8 | ) | ||||
CDSOA receipts, net of expense | — | 108 | — | |||||||
Separation costs | (13.0 | ) | — | — | ||||||
Interest expense | (24.4 | ) | (31.1 | ) | (36.8 | ) | ||||
Interest income | 1.9 | 2.9 | 5.6 | |||||||
Intersegment adjustments | 1.7 | (0.5 | ) | 0.3 | ||||||
Income before income taxes | $ | 417.1 | $ | 766 | $ | 696.8 | ||||
Schedule of Assets Employed at Year-End, Capital Expenditures, and Depreciation and Amortization, by Segment [Table Text Block] | ' | |||||||||
2013 | 2012 | 2011 | ||||||||
Assets employed at year-end: | ||||||||||
Mobile Industries | $ | 1,051.40 | $ | 1,052.90 | $ | 1,233.70 | ||||
Process Industries | 1,096.70 | 1,056.20 | 979.3 | |||||||
Aerospace | 555.8 | 480.6 | 526.6 | |||||||
Steel | 1,198.90 | 921.4 | 954.2 | |||||||
Corporate | 575.1 | 733.1 | 633.6 | |||||||
$ | 4,477.90 | $ | 4,244.20 | $ | 4,327.40 | |||||
Capital expenditures: | ||||||||||
Mobile Industries | $ | 40.3 | $ | 32.1 | $ | 39.5 | ||||
Process Industries | 80.1 | 72.4 | 54.4 | |||||||
Aerospace | 7.8 | 14 | 10.6 | |||||||
Steel | 192.6 | 175.5 | 99.8 | |||||||
Corporate | 5 | 3.2 | 1 | |||||||
$ | 325.8 | $ | 297.2 | $ | 205.3 | |||||
Depreciation and amortization: | ||||||||||
Mobile Industries | $ | 50.2 | $ | 60.8 | $ | 70.2 | ||||
Process Industries | 67.4 | 62.2 | 51.8 | |||||||
Aerospace | 20.5 | 23.1 | 23.2 | |||||||
Steel | 53.8 | 49.7 | 45.8 | |||||||
Corporate | 2.7 | 2.2 | 1.5 | |||||||
$ | 194.6 | $ | 198 | $ | 192.5 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2013 | ||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||
Income or loss from continuing operations before income taxes, based on geographic location of the operations | ' | |||||||||
Income before income taxes: | ||||||||||
2013 | 2012 | 2011 | ||||||||
United States | $ | 314.5 | $ | 680.8 | $ | 527.6 | ||||
Non-United States | 102.6 | 85.2 | 169.2 | |||||||
Income before income taxes | $ | 417.1 | $ | 766 | $ | 696.8 | ||||
Schedule of the provision for income taxes | ' | |||||||||
The provision for income taxes consisted of the following: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Current: | ||||||||||
Federal | $ | 99.9 | $ | 103.5 | $ | 53.8 | ||||
State and local | 14.4 | 7.2 | 6.8 | |||||||
Foreign | 39.3 | 36.3 | 55.1 | |||||||
$ | 153.6 | $ | 147 | $ | 115.7 | |||||
Deferred: | ||||||||||
Federal | $ | (3.4 | ) | $ | 105.2 | $ | 117.7 | |||
State and local | 2.9 | 18.1 | 11.7 | |||||||
Foreign | 1 | (0.2 | ) | (4.9 | ) | |||||
$ | 0.5 | $ | 123.1 | $ | 124.5 | |||||
United States and foreign tax expense on income | $ | 154.1 | $ | 270.1 | $ | 240.2 | ||||
Summary of variation of effective income tax rate from continuing operations from the statutory federal income tax rate | ' | |||||||||
The following table is the reconciliation between the provision for income taxes and the amount computed by applying the U.S. Federal income tax rate of 35% to income before taxes: | ||||||||||
2013 | 2012 | 2011 | ||||||||
Income tax at the U.S. federal statutory rate | $ | 146 | $ | 268.1 | $ | 243.9 | ||||
Adjustments: | ||||||||||
State and local income taxes, net of federal tax benefit | 10.9 | 15.6 | 11.2 | |||||||
Tax on foreign remittances and U.S. tax on foreign income | 41 | 9.5 | 15.3 | |||||||
Tax expense related to undistributed earnings of foreign subsidiaries | 8.7 | — | — | |||||||
Foreign losses without current tax benefits | 9.5 | 16.1 | 7.7 | |||||||
Foreign earnings taxed at different rates including tax holidays | (4.4 | ) | (18.1 | ) | (26.4 | ) | ||||
U.S. domestic manufacturing deduction | (11.3 | ) | (7.5 | ) | (6.6 | ) | ||||
U.S. foreign tax credit | (25.9 | ) | (13.7 | ) | — | |||||
U.S. research tax credit | (3.8 | ) | (0.4 | ) | (1.5 | ) | ||||
Accruals and settlements related to tax audits | (16.9 | ) | 4.3 | 1.2 | ||||||
Other items, net | 0.3 | (3.8 | ) | (4.6 | ) | |||||
Provision for income taxes | $ | 154.1 | $ | 270.1 | $ | 240.2 | ||||
Effective income tax rate | 36.9 | % | 35.3 | % | 34.5 | % | ||||
Components of deferred tax assets and liabilities | ' | |||||||||
The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2013 and 2012 was as follows: | ||||||||||
2013 | 2012 | |||||||||
Deferred tax assets: | ||||||||||
Accrued postretirement benefits cost | $ | 130.1 | $ | 185 | ||||||
Accrued pension cost | — | 137.1 | ||||||||
Inventory | 4 | 15.4 | ||||||||
Other employee benefit accruals | 20.3 | 26.6 | ||||||||
Tax loss and credit carryforwards | 166.7 | 145.1 | ||||||||
Other, net | 52.6 | 59.9 | ||||||||
Valuation allowances | (195.9 | ) | (183.9 | ) | ||||||
$ | 177.8 | $ | 385.2 | |||||||
Pension assets | (33.4 | ) | — | |||||||
Deferred tax liabilities - principally depreciation and amortization | (239.0 | ) | (231.9 | ) | ||||||
Net deferred tax (liabilities) assets | $ | (94.6 | ) | $ | 153.3 | |||||
Summary of unrecognized tax benefits for the years ended | ' | |||||||||
The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2013 and 2012: | ||||||||||
2013 | 2012 | |||||||||
Beginning balance, January 1 | $ | 112.6 | $ | 87.2 | ||||||
Tax positions related to the current year: | ||||||||||
Additions | 9.3 | 20.6 | ||||||||
Tax positions related to prior years: | ||||||||||
Additions | 6.9 | 7 | ||||||||
Reductions | (1.4 | ) | (1.7 | ) | ||||||
Settlements with tax authorities | (77.9 | ) | — | |||||||
Lapses in statutes of limitation | — | (0.5 | ) | |||||||
Ending balance, December 31 | $ | 49.5 | $ | 112.6 | ||||||
Fair_Value_Tables
Fair Value (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Assets and liabilities measured at fair value on a recurring basis | ' | ||||||||||||
The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheet measured at fair value on a recurring basis as of December 31, 2013 and 2012: | |||||||||||||
December 31, 2013 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 384.6 | $ | 320.4 | $ | 64.2 | $ | — | |||||
Restricted Cash | 15.1 | — | 15.1 | — | |||||||||
Short-term investments | 13.9 | — | 13.9 | — | |||||||||
Foreign currency hedges | 0.9 | — | 0.9 | — | |||||||||
Total Assets | $ | 414.5 | $ | 320.4 | $ | 94.1 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 9.3 | $ | — | $ | 9.3 | $ | — | |||||
Total Liabilities | $ | 9.3 | $ | — | $ | 9.3 | $ | — | |||||
December 31, 2012 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 586.4 | $ | 303.9 | $ | 282.5 | $ | — | |||||
Restricted Cash | 15.1 | — | 15.1 | — | |||||||||
Short-term investments | 17.3 | — | 17.3 | — | |||||||||
Foreign currency hedges | 1.2 | — | 1.2 | — | |||||||||
Total Assets | $ | 620 | $ | 303.9 | $ | 316.1 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 1.9 | $ | — | $ | 1.9 | $ | — | |||||
Total Liabilities | $ | 1.9 | $ | — | $ | 1.9 | $ | — | |||||
Quarterly_Financial_Data_Table
Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly financial data | ' | |||||||||||||||
2013 | ||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||
Net sales | $ | 1,089.90 | $ | 1,126.50 | $ | 1,061.50 | $ | 1,063.30 | $ | 4,341.20 | ||||||
Gross profit | 274.5 | 302.1 | 251.7 | 263.7 | 1,092.00 | |||||||||||
Impairment and restructuring charges (1) | 1.2 | 6.7 | 3.7 | 4.8 | 16.4 | |||||||||||
Separation costs (2) | — | — | — | 13 | 13 | |||||||||||
Net income (3) | 75 | 82.8 | 52.5 | 52.7 | 263 | |||||||||||
Net income (loss) attributable to noncontrolling interests | (0.1 | ) | — | 0.3 | 0.1 | 0.3 | ||||||||||
Net income attributable to The Timken Company | 75.1 | 82.8 | 52.2 | 52.6 | 262.7 | |||||||||||
Net income per share - Basic: | ||||||||||||||||
Total net income per share | $ | 0.78 | $ | 0.86 | $ | 0.55 | $ | 0.56 | $ | 2.76 | ||||||
Net income per share - Diluted: | ||||||||||||||||
Total net income per share | $ | 0.77 | $ | 0.86 | $ | 0.54 | $ | 0.55 | $ | 2.74 | ||||||
Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 | ||||||
2012 | ||||||||||||||||
1st | 2nd | 3rd | 4th | Total | ||||||||||||
Net sales | $ | 1,421.00 | $ | 1,343.20 | $ | 1,142.50 | $ | 1,080.30 | $ | 4,987.00 | ||||||
Gross profit | 411.6 | 377.3 | 298.9 | 278.5 | 1,366.30 | |||||||||||
Impairment and restructuring charges (4) | 0.2 | 16.7 | 11.9 | 0.7 | 29.5 | |||||||||||
Net income (5) | 156 | 183.4 | 81.1 | 75.4 | 495.9 | |||||||||||
Net income (loss) attributable to noncontrolling interests | 0.3 | (0.2 | ) | 0.2 | 0.1 | 0.4 | ||||||||||
Net income attributable to The Timken Company | 155.7 | 183.6 | 80.9 | 75.3 | 495.5 | |||||||||||
Net income per share - Basic: | ||||||||||||||||
Total net income per share | $ | 1.59 | $ | 1.88 | $ | 0.84 | $ | 0.79 | $ | 5.11 | ||||||
Net income per share - Diluted: | ||||||||||||||||
Total net income per share | $ | 1.58 | $ | 1.86 | $ | 0.83 | $ | 0.78 | $ | 5.07 | ||||||
Dividends per share | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.23 | $ | 0.92 | ||||||
Earnings per share are computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. | ||||||||||||||||
-1 | Impairment and restructuring charges for the second quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $5.2 million, and exit costs of $0.7 million. Impairment and restructuring charges for the third quarter of 2013 included severance and related benefit costs of $3.2 million, including pension settlement costs of $1.5 million, and exit costs of $0.5 million. Impairment and restructuring charges for the fourth quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $0.4 million, impairment charges of $0.7 million and a favorable adjustment for exit costs of $1.9 million. | |||||||||||||||
-2 | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. | |||||||||||||||
-3 | Net income for the fourth quarter of 2013 included a gain of $5.4 million on the sale of real estate in Brazil. | |||||||||||||||
-4 | Impairment and restructuring charges for the second quarter of 2012 included severance and related benefit costs of $16.5 million, including a curtailment of pension benefits of $10.7 million, and exit costs of $0.2 million. Impairment and restructuring charges for the third quarter of 2012 included impairment charges of $6.4 million, severance and related benefit costs of $1.3 million and exit costs of $4.2 million. | |||||||||||||||
-5 | Net income for the second quarter of 2012 included CDSOA receipts of $109.5 million, net of expenses. |
Significant_Accounting_Policie2
Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
reclassification other current assets to restricted cash | $15.10 | ' | ' |
Short-term investments | 13.9 | 17.3 | ' |
Realized foreign currency exchange losses | 9.2 | 6.9 | 1.4 |
reclassification from current deferred tax assets to non-current deferred tax assets | 12 | ' | ' |
Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Intangible assets estimated useful lives range | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Intangible assets estimated useful lives range | '20 years | ' | ' |
Software [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of assets | '3 years | ' | ' |
Software [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of assets | '10 years | ' | ' |
Building [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of assets | '30 years | ' | ' |
Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of assets | '3 years | ' | ' |
Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Useful life of assets | '20 years | ' | ' |
Gears and Services [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Net sales recognized under completion method | $45 | $60 | ' |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures p Purchase Price Allocation Identifiable Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | '18 years 4 months 18 days | '13 years 7 months |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $13 | $7.70 |
Adjusted Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | 7.7 |
Trade names [Member] | Initial Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | '8 years |
Trade names [Member] | Adjusted Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | '6 years |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | 0.8 |
Know-how [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | '18 years | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 5.2 | 3.5 |
Know-how [Member] | Initial Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | '20 years |
Know-how [Member] | Adjusted Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | '20 years |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | 3.4 |
All customer relationships [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | '20 years | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 6.4 | 2.5 |
All customer relationships [Member] | Initial Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | '10 years |
All customer relationships [Member] | Adjusted Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | '9 years |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | 3.5 |
Non-compete agreements [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | '4 years | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 0.3 | 0.5 |
Non-compete agreements [Member] | Initial Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | '5 years |
Non-compete agreements [Member] | Adjusted Price Allocation [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | ' | 0 |
Trade names [Member] | ' | ' |
Business Acquisition Purchase price allocation identifiable intangible assets | ' | ' |
Intangible Assets, Weighted Average Life | '13 years | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $1.10 | $1.20 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Fair Value of the Assets Acquired and Liabilities Assumed (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Business Acquisition Purchase Price Allocation Assets [Abstract] | ' | ' | ' |
Accounts receivable, net | $10.60 | $4.70 | $25.60 |
Inventories, net | 12.7 | 2.3 | 23.6 |
Deferred charges and prepaid expenses | 0.3 | 0.1 | 0.9 |
Other current assets | 0.1 | 0.2 | 0.1 |
Property, plant and equipment, net | 19.5 | 3 | 32.1 |
Goodwill | 18.1 | 7.1 | 83.3 |
Other intangible assets | 13 | 7.7 | 146.9 |
Other non-current assets | 0 | 0 | 0.6 |
Total assets acquired | 74.3 | 25.1 | 313.1 |
Liabilities: | ' | ' | ' |
Accounts payable, trade | 3.3 | 2.3 | 10.7 |
Salaries, wages and benefits | 1.4 | 0.3 | 5.1 |
Other current liabilities | 0.9 | 1.8 | 5.2 |
Other non-current liabilities | 4.5 | 0 | 0 |
Total liabilities assumed | 10.1 | 4.4 | 21 |
Net assets acquired | $64.20 | $20.70 | $292.10 |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures - Acquisitions Narrative (Details) (USD $) | 12 Months Ended | 6 Months Ended | 3 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Jun. 30, 2013 | 13-May-13 | Apr. 10, 2013 | Mar. 31, 2013 | Mar. 11, 2013 | Dec. 31, 2012 | Oct. 03, 2011 | Jul. 01, 2011 |
Standard Machine [Member] | Standard Machine [Member] | Smith Services [Member] | Interlube [Member] [Member] | Interlube [Member] [Member] | Wazee [Member] | Drives [Member] | Gears and Services [Member] | ||
Person | Person | Person | Person | Person | Person | ||||
Acquisitions (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash acquisitions | $0.40 | $0.10 | ' | ' | $0.30 | ' | ' | ' | ' |
Number of employees employed | ' | ' | 125 | 140 | ' | 90 | 100 | 430 | 220 |
Significant Acquisitions and Disposals, Acquisition Costs or Sale Proceeds | ' | ' | $37 | $13.20 | ' | $14.50 | $20 | $93 | $199 |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures Acquisitions and Divestitures - Divestitures Narrative (Details) (AGC [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
AGC [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Cash proceeds for AGC | $2.20 |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $2 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income Attributable to The Timken Company | $52.60 | $52.20 | $82.80 | $75.10 | $75.30 | $80.90 | $183.60 | $155.70 | $262.70 | $495.50 | $454.30 |
Less: undistributed earnings allocated to nonvested stock | ' | ' | ' | ' | ' | ' | ' | ' | -0.3 | -1.5 | -1.6 |
Net income available to common shareholders for basic earnings per share and diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | $262.40 | $494 | $452.70 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average number of shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 94,989,561 | 96,671,613 | 97,451,064 |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options and awards - based on the treasury stock method (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 834,167 | 930,868 | 1,204,449 |
Weighted-average number of shares outstanding, assuming dilution of stock options and awards | ' | ' | ' | ' | ' | ' | ' | ' | 95,823,728 | 97,602,481 | 98,655,513 |
Basic earnings per share (in dollars per share) | $0.56 | $0.55 | $0.86 | $0.78 | $0.79 | $0.84 | $1.88 | $1.59 | $2.76 | $5.11 | $4.65 |
Diluted earnings per share (in dollars per share) | $0.55 | $0.54 | $0.86 | $0.77 | $0.78 | $0.83 | $1.86 | $1.58 | $2.74 | $5.07 | $4.59 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share (Textual) [Abstract] | ' | ' | ' |
Antidilutive stock options outstanding | 382,525 | 879,413 | 436,850 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Accumulated other comprehensive loss | ($1,013.20) | ($889.50) | ' |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 475.9 | -278 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 130.2 | 98.4 | ' |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | -226.5 | 55.7 | ' |
Other Comprehensive Income (Loss), Net of Tax | 379.6 | -123.9 | -264.6 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 7.5 | 0.2 | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 387.1 | -123.7 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -626.1 | -1,013.20 | -889.5 |
Foreign currency translation adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Accumulated other comprehensive loss | 49 | 38.5 | ' |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | -19 | 10.5 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ' |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | ' |
Other Comprehensive Income (Loss), Net of Tax | -19 | 10.5 | ' |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 7.5 | 0 | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | -11.5 | 10.5 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 37.5 | 49 | ' |
Pension and postretirement liability adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Accumulated other comprehensive loss | -1,061.50 | -928.3 | ' |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 494.2 | -288.9 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 130.6 | 100.4 | ' |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | -226.5 | 55.3 | ' |
Other Comprehensive Income (Loss), Net of Tax | 398.3 | -133.2 | ' |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 398.3 | -133.2 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | -663.2 | -1,061.50 | ' |
Fair Value of Marketable Securities [Member] | ' | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Accumulated other comprehensive loss | ' | 0.6 | ' |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | ' | 0 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | ' | -1.2 | ' |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | ' | 0.4 | ' |
Other Comprehensive Income (Loss), Net of Tax | ' | -0.8 | ' |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | ' | 0.2 | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | ' | -0.6 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ' | 0 | ' |
Derivative financial instruments fair value adjustment [Member] | ' | ' | ' |
Accumulated Other Comprehensive Loss | ' | ' | ' |
Accumulated other comprehensive loss | -0.7 | -0.3 | ' |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0.7 | 0.4 | ' |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -0.4 | -0.8 | ' |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | ' |
Other Comprehensive Income (Loss), Net of Tax | 0.3 | -0.4 | ' |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | ' |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.3 | -0.4 | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($0.40) | ($0.70) | ' |
Inventories_Details
Inventories (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventories: | ' | ' |
Manufacturing supplies | $59.70 | $64.30 |
Raw materials | 94.5 | 110.7 |
Work in process | 294.5 | 278.1 |
Finished products | 381.5 | 430.4 |
Subtotal | 830.2 | 883.5 |
Allowance for surplus and obsolete inventory | -20.3 | -21.4 |
Total Inventories, net | $809.90 | $862.10 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Percentage of inventories valued by LIFO method | 54.00% | ' |
Percentage of inventories valued by FIFO method | 46.00% | ' |
Inventory Reserve (LIFO) | $278.30 | $280.60 |
Increase (decrease) in inventory reserve (LIFO) | $2.30 | $7.10 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment: | ' | ' | ' |
Land and buildings | $685 | $653.80 | ' |
Machinery and equipment | 3,393.10 | 3,138.30 | ' |
Subtotal | 4,078.10 | 3,792.10 | ' |
Less allowances for depreciation | -2,520 | -2,386.80 | ' |
Property, Plant and Equipment - net | $1,558.10 | $1,405.30 | $1,308.90 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Computer software [Member] | Computer software [Member] | Computer software [Member] | Sao Paulo [Member] | Sao Paulo [Member] | Sao Paulo [Member] | |||||
Property Plant and Equipment (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation expense | ' | $175.90 | $179 | $178.50 | $25.10 | $23.50 | $21.70 | ' | ' | ' |
Carrying amount of capitalized computer software included in Machinery and equipment | 81.1 | 81.1 | 84.9 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Sale of Land Held-for-use | ' | ' | ' | ' | ' | ' | ' | 34 | 5.9 | ' |
Costs of Real Estate Services and Land Sales | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Gains (Losses) on Sales of Other Real Estate | $5.40 | ' | ' | ' | ' | ' | ' | ' | $5.40 | $25 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Change in the carrying amount of Goodwill | ' | ' |
Beginning Balance | $338.90 | $332.70 |
Acquisitions | 18.1 | 7.1 |
Other | 1.7 | -0.9 |
Ending Balance | 358.7 | 338.9 |
Mobile Industries [Member] | ' | ' |
Change in the carrying amount of Goodwill | ' | ' |
Beginning Balance | 17.7 | 16.9 |
Acquisitions | 4.3 | 0.8 |
Other | 0.3 | 0 |
Ending Balance | 22.3 | 17.7 |
Process Industries [Member] | ' | ' |
Change in the carrying amount of Goodwill | ' | ' |
Beginning Balance | 146.4 | 141.1 |
Acquisitions | 13.8 | 6.3 |
Other | 1.2 | -1 |
Ending Balance | 161.4 | 146.4 |
Aerospace and Defense [Member] | ' | ' |
Change in the carrying amount of Goodwill | ' | ' |
Beginning Balance | 162.2 | 162.1 |
Acquisitions | 0 | 0 |
Other | 0.2 | 0.1 |
Ending Balance | 162.4 | 162.2 |
Steel [Member] | ' | ' |
Change in the carrying amount of Goodwill | ' | ' |
Beginning Balance | 12.6 | 12.6 |
Acquisitions | 0 | 0 |
Other | 0 | 0 |
Ending Balance | $12.60 | $12.60 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | $281 | $268.60 |
Intangible assets, Accumulated Amortization | 93.3 | 75.4 |
Intangible assets, Net Carrying Amount | 187.7 | 193.2 |
Intangible assets not subject to amortization: | ' | ' |
Indefinite Lived Intangible Assets Net | 31.4 | 31.5 |
Total intangible assets, Gross Carrying Amount | 312.4 | 300.1 |
Total intangible assets, Net Carrying Amount | 219.1 | 224.7 |
Customer relationships [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 167.3 | 159.6 |
Intangible assets, Accumulated Amortization | 51.3 | 38.1 |
Intangible assets, Net Carrying Amount | 116 | 121.5 |
Know-how [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 31.4 | 26.1 |
Intangible assets, Accumulated Amortization | 4.4 | 2.8 |
Intangible assets, Net Carrying Amount | 27 | 23.3 |
Industrial license agreements [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 0.1 | 0.2 |
Intangible assets, Accumulated Amortization | 0.1 | 0.1 |
Intangible assets, Net Carrying Amount | 0 | 0.1 |
Land-use rights [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 8.9 | 8.6 |
Intangible assets, Accumulated Amortization | 4.5 | 4.1 |
Intangible assets, Net Carrying Amount | 4.4 | 4.5 |
Patents [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 2.3 | 2.5 |
Intangible assets, Accumulated Amortization | 1.8 | 1.8 |
Intangible assets, Net Carrying Amount | 0.5 | 0.7 |
Technology use [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 46.2 | 47 |
Intangible assets, Accumulated Amortization | 13.5 | 11.5 |
Intangible assets, Net Carrying Amount | 32.7 | 35.5 |
Trademarks [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 4.6 | 4.2 |
Intangible assets, Accumulated Amortization | 2.7 | 3.4 |
Intangible assets, Net Carrying Amount | 1.9 | 0.8 |
PMA licenses [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 8.8 | 8.8 |
Intangible assets, Accumulated Amortization | 4 | 3.6 |
Intangible assets, Net Carrying Amount | 4.8 | 5.2 |
Non-compete agreements [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 4.2 | 4.4 |
Intangible assets, Accumulated Amortization | 3.8 | 3.3 |
Intangible assets, Net Carrying Amount | 0.4 | 1.1 |
Unpatented technology [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Gross Carrying Amount | 7.2 | 7.2 |
Intangible assets, Accumulated Amortization | 7.2 | 6.7 |
Intangible assets, Net Carrying Amount | 0 | 0.5 |
Trade Names [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Accumulated Amortization | 0 | 0 |
Intangible assets not subject to amortization: | ' | ' |
Tradename | 17.2 | 17.3 |
FAA air agency certificates [Member] | ' | ' |
Intangible assets subject to amortization: | ' | ' |
Intangible assets, Accumulated Amortization | 0 | 0 |
Intangible assets not subject to amortization: | ' | ' |
FAA air agency certificates | $14.20 | $14.20 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details Textual) (USD $) | 12 Months Ended | 12 Months Ended | ||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Apr. 10, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Wazee [Member] | Standard Machine [Member] | Smith Services [Member] | Smith Services [Member] | Interlube [Member] [Member] | Goodwill [Member] | Goodwill [Member] | ||||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | ' | ' | ' | ' | ' | ' | $1.70 | ' | ' | ' |
Goodwill | 18.1 | 7.1 | 83.3 | 6.1 | ' | ' | ' | ' | ' | ' |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 13 | 7.7 | ' | ' | 5.9 | 0.7 | ' | 6.8 | ' | ' |
Total intangible assets allocated | ' | ' | ' | 7.7 | ' | ' | ' | ' | ' | ' |
Intangible assets acquired useful lives minimum | '2 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets acquired useful lives maximum | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets weighted average amortization period | '18 years 4 months 18 days | '13 years 7 months | ' | ' | ' | ' | ' | ' | '15 years | '15 years |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense for intangible assets | 18.7 | 19 | 14 | ' | ' | ' | ' | ' | ' | ' |
Future Amortization Expense Year 2014 | 18.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future Amortization Expense Year 2015 | 18.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future Amortization Expense Year 2016 | 18 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future Amortization Expense Year 2017 | 17.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Future Amortization Expense Year 2018 | $17.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Short-term debt | ' | ' |
Short-term debt | $18.60 | $14.30 |
Variable Rate Lines of Credit [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Line of Credit Stated Variable Interest Rate Low Range | 0.87% | 0.61% |
Line of Credit Stated Variable Interest Rate, High Range | 4.86% | 2.28% |
Line of Credit [Member] | Foreign Subsidiary [Member] | ' | ' |
Short-term debt | ' | ' |
Short-term debt | $18.60 | $14.30 |
Financing_Arrangements_Details1
Financing Arrangements (Details 1) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term debt | ' | ' |
Total Long-term debt | $457.30 | $464.70 |
Current portion of long-term debt | 250.7 | 9.6 |
Long-term debt | 206.6 | 455.1 |
Series A Medium Term Note [Member] | ' | ' |
Long-term debt | ' | ' |
Total Long-term debt | 175 | 175 |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 6.74% | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 7.76% | ' |
Debt Instruments Maturity Date | 1-May-28 | ' |
Senior Unsecured Notes [Member] | ' | ' |
Long-term debt | ' | ' |
Total Long-term debt | 249.9 | 249.9 |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ' |
Debt Instruments Maturity Date | 15-Sep-14 | ' |
Ohio Water Development Revenue Refunding Bonds [Member] | ' | ' |
Long-term debt | ' | ' |
Total Long-term debt | 12.2 | 12.2 |
Debt Instrument, Interest Rate, Stated Percentage | 0.06% | ' |
Debt Instruments Maturity Date | 1-Nov-25 | ' |
Ohio Air Quality Development Revenue Refunding Bonds [Member] | ' | ' |
Long-term debt | ' | ' |
Total Long-term debt | 9.5 | 9.5 |
Debt Instrument, Interest Rate, Stated Percentage | 0.15% | ' |
Debt Instruments Maturity Date | 1-Nov-25 | ' |
Ohio Pollution Control Revenue Refunding Bonds [Member] | ' | ' |
Long-term debt | ' | ' |
Total Long-term debt | 8.5 | 8.5 |
Debt Instrument, Interest Rate, Stated Percentage | 0.15% | ' |
Debt Instruments Maturity Date | 1-Jun-33 | ' |
Other Long Term Debt [Member] | ' | ' |
Long-term debt | ' | ' |
Total Long-term debt | $2.20 | $9.60 |
Financing_Arrangements_Details2
Financing Arrangements (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Financing Arrangements (Textual) [Abstract] | ' | ' | ' |
Borrowings outstanding | ' | $0 | ' |
Weighted average interest rate on short-term debt | 3.20% | 3.20% | 4.10% |
Weighted average interest rate on short-term debt, outstanding | 4.60% | 1.50% | ' |
Debt instrument yield rate | 0.96% | 1.06% | 1.25% |
Total Long-term debt | 457,300,000 | 464,700,000 | ' |
Maturities of long-term debt in 2014 | 250,700,000 | ' | ' |
Maturities of long-term debt in 2015 | 700,000 | ' | ' |
Maturities of long-term debt in 2016 | 15,700,000 | ' | ' |
Maturities of long-term debt in 2017 | 5,000,000 | ' | ' |
Maturities of long-term debt in 2018 | 0 | ' | ' |
Interest paid | 31,000,000 | 32,400,000 | 34,800,000 |
Interest capitalized | 12,700,000 | 4,900,000 | 1,200,000 |
Rent expense under operating leases | 44,400,000 | 43,600,000 | 44,500,000 |
Future minimum lease payments for noncancelable operating leases total | 125,700,000 | ' | ' |
Future minimum lease payments for noncancelable operating leases 2014 | 37,900,000 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Two Years | 30,700,000 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Three Years | 21,800,000 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Four Years | 13,800,000 | ' | ' |
Operating Leases, Future Minimum Payments, Due in Five Years | 8,900,000 | ' | ' |
Future minimum lease payments for noncancelable operating leases thereafter | 12,600,000 | ' | ' |
Ohio Pollution Control Revenue Refunding Bonds [Member] | ' | ' | ' |
Financing Arrangements (Textual) [Abstract] | ' | ' | ' |
Debt Instruments, Maturity Date | 1-Jun-33 | ' | ' |
Total Long-term debt | 8,500,000 | 8,500,000 | ' |
Foreign Subsidiary [Member] | ' | ' | ' |
Financing Arrangements (Textual) [Abstract] | ' | ' | ' |
Maximum borrowing capacity under line of credit | 217,000,000 | ' | ' |
Borrowings outstanding | 18,600,000 | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 1,200,000 | ' | ' |
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | 197,200,000 | ' | ' |
Line of Credit Accounts Receivable Securitization [Member] | ' | ' | ' |
Financing Arrangements (Textual) [Abstract] | ' | ' | ' |
Maximum borrowing capacity under line of credit | ' | 200,000,000 | ' |
Borrowings outstanding | 0 | ' | ' |
Line of credit expiration date | ' | 30-Nov-15 | ' |
Line of Credit Facility, Current Borrowing Capacity | 149,300,000 | ' | ' |
Senior Credit Facility [Member] | ' | ' | ' |
Financing Arrangements (Textual) [Abstract] | ' | ' | ' |
Maximum borrowing capacity under line of credit | 500,000,000 | ' | ' |
Borrowings outstanding | 0 | ' | ' |
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | 491,400,000 | ' | ' |
Line of credit expiration date | 11-May-16 | ' | ' |
Number of Financial Covenant under senior Credit Facility | 2 | ' | ' |
Letter of Credit [Member] | Senior Credit Facility [Member] | ' | ' | ' |
Financing Arrangements (Textual) [Abstract] | ' | ' | ' |
Borrowings outstanding | $8,600,000 | ' | ' |
Contingencies_Details
Contingencies (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Roll forward of Product warranty accruals | ' | ' |
Beginning Balance | $4.30 | $11.70 |
Expense (Income) | 4.8 | -0.9 |
Payments | -4.8 | -6.5 |
Ending Balance | 4.3 | 4.3 |
Contingencies (Textual) [Abstract] | ' | ' |
Accrual for environmental matters | 2.6 | 7.5 |
Rollforward of restructuring accrual for environmental matters | $1.20 | ' |
Impairment_and_Restructuring_C2
Impairment and Restructuring Charges (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||
Impairment and Restructuring Charges for the Mobile Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment charges | $0.70 | ' | ' | ' | ' | ' | ' | ' | $0.70 | $6.60 | $0.50 | ||||||||||
Severance expense and related benefit costs | 6 | 3.2 | 6 | ' | ' | 1.3 | 16.5 | ' | 16.3 | 18.4 | 0.1 | ||||||||||
Exit costs | 1.9 | 0.5 | 0.7 | ' | ' | 4.2 | 0.2 | ' | -0.6 | 4.5 | 13.8 | ||||||||||
Total | 4.8 | [1] | 3.7 | [1] | 6.7 | [1] | 1.2 | [1] | 0.7 | [2] | 11.9 | [2] | 16.7 | [2] | 0.2 | [2] | 16.4 | [1] | 29.5 | [2] | 14.4 |
Mobile Industries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment and Restructuring Charges for the Mobile Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 6.5 | 0.2 | ||||||||||
Severance expense and related benefit costs | ' | ' | ' | ' | ' | ' | ' | ' | 12.5 | 16.8 | 0.2 | ||||||||||
Exit costs | ' | ' | ' | ' | ' | ' | ' | ' | -1.5 | 4.2 | 13 | ||||||||||
Total | ' | ' | ' | ' | ' | ' | ' | ' | 11 | 27.5 | 13.4 | ||||||||||
Process Industries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment and Restructuring Charges for the Mobile Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.1 | 0.3 | ||||||||||
Severance expense and related benefit costs | ' | ' | ' | ' | ' | ' | ' | ' | 2.6 | 1.6 | -0.1 | ||||||||||
Exit costs | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | 0.3 | 0.3 | ||||||||||
Total | ' | ' | ' | ' | ' | ' | ' | ' | 3.6 | 2 | 0.5 | ||||||||||
Aerospace and Defense [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment and Restructuring Charges for the Mobile Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ||||||||||
Severance expense and related benefit costs | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 0 | 0 | ||||||||||
Exit costs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0.5 | ||||||||||
Total | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 0 | 0.5 | ||||||||||
Steel [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment and Restructuring Charges for the Mobile Segment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment charges | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0 | 0 | ||||||||||
Severance expense and related benefit costs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ||||||||||
Exit costs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ||||||||||
Total | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | $0 | $0 | ||||||||||
[1] | Impairment and restructuring charges for the second quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $5.2 million, and exit costs of $0.7 million. Impairment and restructuring charges for the third quarter of 2013 included severance and related benefit costs of $3.2 million, including pension settlement costs of $1.5 million, and exit costs of $0.5 million. Impairment and restructuring charges for the fourth quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $0.4 million, impairment charges of $0.7 million and a favorable adjustment for exit costs of $1.9 million. | ||||||||||||||||||||
[2] | Impairment and restructuring charges for the second quarter of 2012 included severance and related benefit costs of $16.5 million, including a curtailment of pension benefits of $10.7 million, and exit costs of $0.2 million. Impairment and restructuring charges for the third quarter of 2012 included impairment charges of $6.4 million, severance and related benefit costs of $1.3 million and exit costs of $4.2 million. |
Impairment_and_Restructuring_C3
Impairment and Restructuring Charges (Details 1) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Roll Forward consolidated restructuring accrual | ' | ' |
Beginning Balance | $17.60 | $21.80 |
Expense | 8.7 | 12.2 |
Payments | -15.5 | -16.4 |
Ending Balance | $10.80 | $17.60 |
Impairment_and_Restructuring_C4
Impairment and Restructuring Charges (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | 31-May-12 | Mar. 29, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Workforce Reductions [Member] | Environmental Remediation Expense [Member] | Mobile Industries [Member] | Mobile Industries [Member] | Mobile Industries [Member] | Mobile Industries [Member] | Mobile Industries [Member] | Mobile Industries [Member] | Mobile Industries [Member] | Mobile Industries [Member] | St. Thomas Ontario Canada [Domain] | St. Thomas Ontario Canada [Member] | St. Thomas Ontario Canada [Member] | St. Thomas Ontario Canada [Member] | Process Industries [Member] | Process Industries [Member] | Process Industries [Member] | Process Industries [Member] | Aerospace and Defense [Member] | Aerospace and Defense [Member] | Aerospace and Defense [Member] | Aerospace and Defense [Member] | |||||||||
Person | Workforce Reductions [Member] | Sao Paulo [Member] | Sao Paulo [Member] | Sao Paulo [Member] | Columbus Ohio [Member] | Positions | Workforce Reductions [Member] | Workforce Reductions [Member] | ||||||||||||||||||||||
Restructuring and Related Cost [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected to be completed period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Number of Positions Eliminated | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 190 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum restructuring and related cost expected cost approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $55 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum expected pretax costs approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum expected cash pretax costs approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum expected pretax cash costs approximately | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pretax cost incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.9 | ' | ' | ' | ' | ' | 41.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Severance expense and related benefit costs | 6 | 3.2 | 6 | 1.3 | 16.5 | 16.3 | 18.4 | 0.1 | 5.9 | ' | 12.5 | 16.8 | 0.2 | 2.2 | ' | ' | ' | ' | ' | ' | 8.2 | 16.9 | 2.6 | 1.6 | -0.1 | 2.5 | 1.2 | 0 | 0 | 1.2 |
Curtailment loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Curtailment of pension benefits | 0.4 | 1.5 | 5.2 | ' | ' | ' | 10.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment charges | 0.7 | ' | ' | ' | ' | 0.7 | 6.6 | 0.5 | ' | ' | 0 | 6.5 | 0.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.1 | 0.3 | ' | 0 | 0 | ' | ' |
Exit costs | 1.9 | 0.5 | 0.7 | 4.2 | 0.2 | -0.6 | 4.5 | 13.8 | ' | ' | -1.5 | 4.2 | 13 | ' | ' | 6.8 | 12.5 | ' | ' | ' | ' | ' | 0.9 | 0.3 | 0.3 | ' | 0 | 0 | 0.5 | ' |
Favorable adjustment to environmental exit costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -2 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Positions eliminated | ' | ' | ' | ' | ' | ' | ' | ' | 180 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve | $10.80 | ' | ' | ' | ' | $10.80 | $17.60 | $21.80 | ' | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Separation_Costs_Schedule_of_S
Separation Costs Schedule of Separation Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Schedule of Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | $13 | [1] | $0 | [1] | $0 | [1] | $0 | [1] | $13 | [1] | $0 | $0 |
Severance Expense and Related Benefit Costs [Member] | ' | ' | ' | ' | ' | ' | ' | |||||
Schedule of Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | 5.6 | ' | ' | ' | 5.6 | ' | ' | |||||
Professional Fee [Member] | ' | ' | ' | ' | ' | ' | ' | |||||
Schedule of Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | 7.3 | ' | ' | ' | 7.3 | ' | ' | |||||
Exit Costs [Member] | ' | ' | ' | ' | ' | ' | ' | |||||
Schedule of Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | ' | ' | ' | ' | $0.10 | ' | ' | |||||
[1] | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. |
Stock_Compensation_Plans_Detai
Stock Compensation Plans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of significant stock options granted | ' | ' | ' |
Weighted-average fair value per option | $21.17 | $20.16 | $19.93 |
Risk-free interest rate | 1.09% | 1.15% | 2.76% |
Dividend yield | 2.29% | 1.94% | 2.00% |
Expected stock volatility | 50.66% | 50.00% | 48.10% |
Expected life - years | '6 years | '6 years | '6 years |
Separation_Costs_Separation_Ac
Separation Costs Separation Accrual Rollforward (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Separation Costs Accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Cost Accrual - Beginning Balance | ' | ' | ' | $0 | $0 | ' | ' | |||||
Separation Costs | 13 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 13 | [1] | 0 | 0 |
Separation Cost Accrual | ' | ' | ' | ' | ' | 0 | ' | |||||
separation cost accrual ending period | 5.7 | ' | ' | ' | 5.7 | ' | ' | |||||
Professional Fee [Member] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs Accrual [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | ' | ' | ' | ' | $7.30 | ' | ' | |||||
[1] | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. |
Stock_Compensation_Plans_Detai1
Stock Compensation Plans (Details 1) (USD $) | 12 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Outstanding - beginning of year, Number of Shares | 3,717,340 |
Outstanding - beginning of year, Weighted-average Exercise Price | $33.59 |
Granted, Number of Shares | 614,480 |
Granted, Weighted Average-exercise Price | $56.27 |
Exercised, Number of Shares | -928,803 |
Exercised, Weighted-average Exercise Price | $23.09 |
Canceled or expired, Number of Shares | -18,330 |
Canceled or expired, Weighted-average Exercise Price | $49.86 |
Outstanding - end of year, Number of Shares | 3,384,687 |
Outstanding - end of year, Weighted Average-axercise Price | $40.50 |
Outstanding - end of year, Weighted-average Remaining Contractual Term | '7 years |
Outstanding - end of year, Aggregate Intrinsic Value | $49.50 |
Option expected to vest, Number of Shares | 2,740,589 |
Option expected to vest, Weighted-average Exercise Price | $36.93 |
Option expected to vest, Weighted-average Remaining Contractual Term | '6 years |
Option expected to vest, Aggregate Intrinsic Value | 49 |
Options exercisable, Number of Shares | 1,711,482 |
Options exercisable, Weighted-average Exercise Price | $32.94 |
Options exercisable, Weighted-average Remaining Contractual Term, Exercisable | '5 years |
Options exercisable, Aggregate Intrinsic Value | $37.90 |
Separation_Costs_Narrative_Det
Separation Costs Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Transaction Costs | $105 | ' | ' | ' | $105 | ' | ' | |||||
Separation Costs | 13 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | 13 | [1] | 0 | 0 |
Separation Cost Accrual | ' | ' | ' | ' | ' | 0 | ' | |||||
Cost Reduction Initiative [Member] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Transaction Costs | 15 | ' | ' | ' | 15 | ' | ' | |||||
Severance Expense and Related Benefit Costs [Member] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | 5.6 | ' | ' | ' | 5.6 | ' | ' | |||||
Separation Cost Accrual | 3.8 | ' | ' | ' | 3.8 | ' | ' | |||||
Professional Fee [Member] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | 7.3 | ' | ' | ' | 7.3 | ' | ' | |||||
Separation Cost Accrual | $1.90 | ' | ' | ' | $1.90 | ' | ' | |||||
[1] | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. |
Stock_Compensation_Plans_Detai2
Stock Compensation Plans (Details 2) (Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted Stock [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Outstanding - beginning of year, Number of Shares | 524,064 |
Outstanding - beginning of year, Weighted-average Grant Date Fair Value | $36.23 |
Granted, Number of shares | 111,640 |
Granted, Weighted-average Grant Date Fair Value | $55.95 |
Vested, Number of shares | -221,542 |
Vested, Weighted-average Grant Date Fair Value | $32.16 |
Canceled or expired, Number of Shares | -17,110 |
Canceled or expired, Weighted-average Grant Date Fair Value | $47.24 |
Outstanding - end of year, Number of Shares | 397,052 |
Outstanding - end of year, Weighted-average Grant Date Fair Value | $43.57 |
Stock_Compensation_Plans_Detai3
Stock Compensation Plans (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Expected life - years | '6 years | '6 years | '6 years |
Total intrinsic value of options exercised | $25,200,000 | $28,200,000 | $26,000,000 |
Recognized Stock-based compensation expense before tax | 12,100,000 | 10,800,000 | 9,400,000 |
Amount accrued for shares settling in cash | 6,200,000 | ' | ' |
Share Based Compensation Plans (Textual) [Abstract] | ' | ' | ' |
Percentage of vest increments of Stock option awards | 25.00% | ' | ' |
Vest in percentage increments of restricted shares | 25.00% | ' | ' |
Recognized Stock-based compensation expense after tax | 7,600,000 | 6,800,000 | 5,900,000 |
Recognized Stock-based compensation expense diluted share | $0.08 | $0.07 | $0.06 |
Period for trailing daily stock prices used in comparison to calculate dividend yield | '12 months | ' | ' |
Estimated forfeitures | 4.00% | ' | ' |
Net cash proceeds from the exercise of stock options | 13,100,000 | 13,800,000 | 16,600,000 |
Income tax benefits | 8,900,000 | 8,100,000 | 7,200,000 |
Restricted deferred shares and deferred dividend credits | 397,052 | ' | ' |
Shares distributed | 221,542 | 249,569 | 302,924 |
Number of shares available for future grants for all plans | 7,562,958 | ' | ' |
Unrecognized compensation expense is expected to be recognized over a total weighted average period | '2 years | ' | ' |
Stock Options [Member] | ' | ' | ' |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Expected life - years | '10 years | ' | ' |
Performance unit component under its long term incentive plan [Member] | ' | ' | ' |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Company performance measured by two metrics over performance period | '3 years | ' | ' |
Canceled or expired, Number of Shares | 160,668 | ' | ' |
Cash value of performance unit | 100 | ' | ' |
Restricted deferred shares and deferred dividend awarded [Member] | ' | ' | ' |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Shares awarded | 111,640 | 161,905 | 246,890 |
Performance Restricted Stock [Member] | ' | ' | ' |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Shares awarded | ' | ' | 34,756 |
Common stock shares outstanding relating to performance units granted | ' | 156,183 | ' |
Restricted Stock [Member] | ' | ' | ' |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Canceled or expired, Number of Shares | 17,110 | ' | ' |
Shares awarded | 111,640 | ' | ' |
Unrecognized Compensation expense related to stock option awards, restricted shares and deferred shares | 28,100,000 | ' | ' |
Recognized Stock-based compensation expense before tax | $6,500,000 | $7,200,000 | $7,500,000 |
Vesting period | '3 years | ' | ' |
Strategic Performance Shares [Member] | ' | ' | ' |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Shares awarded | 260,740 | ' | ' |
Shares expected to settle in cash | 243,580 | ' | ' |
Shares expected to settle in shares | 17,160 | ' | ' |
Strategic Shares [Member] | ' | ' | ' |
Share Based Compensation Plans (Additional Textual) [Abstract] | ' | ' | ' |
Shares awarded | 121,080 | ' | ' |
Shares expected to settle in cash | 65,400 | ' | ' |
Shares expected to settle in shares | 55,680 | ' | ' |
Retirement_Benefit_Plans_Detai
Retirement Benefit Plans (Details) (Pension Plan, Defined Benefit [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | $38.50 | $34.70 | $32.20 |
Interest cost | 134.7 | 151.1 | 158.6 |
Expected return on plan assets | -232 | -221.1 | -214.9 |
Amortization of prior service cost | 4.5 | 9.3 | 9.4 |
Amortization of net actuarial loss | 116.8 | 83.3 | 56 |
Curtailment loss | 7.2 | 11.6 | 0 |
Net periodic benefit cost | $69.70 | $68.90 | $41.30 |
Retirement_Benefit_Plans_Detai1
Retirement Benefit Plans (Details 1) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Pension Benefits Assumptions | ' | ' | ' |
Discount rate | 3.80% | 4.85% | 5.50% |
Expected long-term return on plan assets | 5.00% | 5.00% | 5.00% |
U.S. Plans [Member] | ' | ' | ' |
Pension Benefits Assumptions | ' | ' | ' |
Discount rate | 4.00% | 5.00% | 5.75% |
Expected long-term return on plan assets | 8.00% | 8.25% | 8.50% |
U.S. Plans [Member] | Minimum [Member] | ' | ' | ' |
Pension Benefits Assumptions | ' | ' | ' |
Future compensation assumption | 2.00% | 2.00% | 2.00% |
U.S. Plans [Member] | Maximum [Member] | ' | ' | ' |
Pension Benefits Assumptions | ' | ' | ' |
Future compensation assumption | 3.00% | 3.00% | 3.00% |
International Plans [Member] | Minimum [Member] | ' | ' | ' |
Pension Benefits Assumptions | ' | ' | ' |
Discount rate | 2.75% | 4.75% | 4.75% |
Future compensation assumption | 2.30% | 2.50% | 2.50% |
Expected long-term return on plan assets | 3.25% | 3.25% | 3.50% |
International Plans [Member] | Maximum [Member] | ' | ' | ' |
Pension Benefits Assumptions | ' | ' | ' |
Discount rate | 9.00% | 9.50% | 9.00% |
Future compensation assumption | 8.00% | 8.00% | 8.84% |
Expected long-term return on plan assets | 8.50% | 9.00% | 9.00% |
Retirement_Benefit_Plans_Detai2
Retirement Benefit Plans (Details 2) (Pension Plan, Defined Benefit [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | $3,496.30 | $3,124.60 | ' |
Service cost | 38.5 | 34.7 | 32.2 |
Interest cost | 134.7 | 151.1 | 158.6 |
Amendments | 0 | -0.3 | ' |
Actuarial (gains) losses | -274.4 | 394.1 | ' |
Employee contributions | 0.2 | 0.2 | ' |
International plan exchange rate change | 5.3 | 18.2 | ' |
Curtailment loss | 0 | 9.5 | ' |
Benefits paid | -267.1 | -235.8 | ' |
Benefit obligation at end of year | $3,133.50 | $3,496.30 | $3,124.60 |
Retirement_Benefit_Plans_Detai3
Retirement Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in plan assets: | ' | ' | ' |
Company contributions / payments | $28.50 | $24.90 | $26.40 |
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 3,098.40 | 2,631.90 | ' |
Actual return on plan assets | 334 | 361.7 | ' |
Employee contributions | 0.2 | 0.2 | ' |
Company contributions / payments | 120.7 | 325.8 | ' |
International plan exchange rate change | 4.4 | 14.6 | ' |
Benefits paid | -267.1 | -235.8 | ' |
Fair value of plan assets at end of year | 3,290.60 | 3,098.40 | ' |
Funded status at end of year | $157.10 | ($397.90) | ' |
Retirement_Benefit_Plans_Detai4
Retirement Benefit Plans (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Amounts recognized on the Consolidated Balance Sheets: | ' | ' |
Non-current assets | $342.60 | $0.20 |
Pension Plan, Defined Benefit [Member] | ' | ' |
Amounts recognized on the Consolidated Balance Sheets: | ' | ' |
Non-current assets | 342.6 | 0.3 |
Current liabilities | -6.5 | -6.8 |
Non-current liabilities | -179 | -391.4 |
Total | $157.10 | ($397.90) |
Retirement_Benefit_Plans_Detai5
Retirement Benefit Plans (Details 5) (Pension Plan, Defined Benefit [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Amounts recognized in accumulated other comprehensive loss: | ' | ' | ' |
Net actuarial loss | $989.10 | $1,489.40 | ' |
Net prior service cost | 19 | 23.5 | ' |
Accumulated other comprehensive loss | $1,008.10 | $1,512.90 | $1,348.20 |
Retirement_Benefit_Plans_Detai6
Retirement Benefit Plans (Details 6) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 3.80% | 4.85% | 5.50% |
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss (AOCL): | ' | ' | ' |
AOCI at beginning of year | 1,512.90 | 1,348.20 | ' |
Net actuarial (gain) loss | -376.3 | 263.1 | ' |
Prior service cost | 0 | -0.3 | ' |
Recognized net actuarial loss | -116.8 | -83.3 | ' |
Recognized prior service credit | -4.5 | -9.3 | ' |
Loss recognized due to curtailment | -7.2 | -11.6 | ' |
Foreign currency impact | 0 | 6.1 | ' |
Total recognized in accumulated other comprehensive loss at December 31 | 1,008.10 | 1,512.90 | ' |
U.S. Plans [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Discount rate | 4.00% | 5.00% | 5.75% |
Retirement_Benefit_Plans_Detai7
Retirement Benefit Plans (Details 7) | Dec. 31, 2013 | Dec. 31, 2012 |
U.S. Plans [Member] | ' | ' |
Assumptions | ' | ' |
Discount rate | 5.02% | 4.00% |
U.S. Plans [Member] | Minimum [Member] | ' | ' |
Assumptions | ' | ' |
Future compensation assumption | 2.00% | 2.00% |
U.S. Plans [Member] | Maximum [Member] | ' | ' |
Assumptions | ' | ' |
Future compensation assumption | 3.00% | 3.00% |
International Plans [Member] | Minimum [Member] | ' | ' |
Assumptions | ' | ' |
Discount rate | 3.25% | 2.75% |
Future compensation assumption | 2.30% | 2.30% |
International Plans [Member] | Maximum [Member] | ' | ' |
Assumptions | ' | ' |
Discount rate | 9.75% | 9.50% |
Future compensation assumption | 8.00% | 8.00% |
Retirement_Benefit_Plans_Detai8
Retirement Benefit Plans (Details 8) (U.S. Plans [Member]) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Equity securities [Member] | Equity securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Other Investments [Member] | Other Investments [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | |||
Equity securities [Member] | Debt Securities [Member] | Other Investments [Member] | Equity securities [Member] | Debt Securities [Member] | Other Investments [Member] | |||||||||
Target assets allocation and actual asset allocations for US pension plan assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Target Allocation | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 9.00% | 52.00% | 50.00% | 19.00% |
Actual Asset Allocation | 100.00% | 100.00% | 43.00% | 47.00% | 45.00% | 40.00% | 12.00% | 13.00% | ' | ' | ' | ' | ' | ' |
Retirement_Benefit_Plans_Detai9
Retirement Benefit Plans (Details 9) (Pension Plan, Defined Benefit [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Assets: | ' | ' | ' |
Total Assets | $3,290.60 | $3,098.40 | $2,631.90 |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 3,290.60 | 3,098.40 | ' |
Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 364 | 80 | ' |
Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 188.4 | 226.2 | ' |
Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 301.1 | 263.7 | ' |
Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities Non Investment Grade [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 110.1 | 103.9 | ' |
Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 300.6 | 347.6 | ' |
Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 311.5 | 273.6 | ' |
Fair Value, Measurements, Recurring [Member] | Asset backed securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 38.2 | 55.4 | ' |
Fair Value, Measurements, Recurring [Member] | Common collective funds - equities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 195.6 | 350.1 | ' |
Fair Value, Measurements, Recurring [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 387.5 | 365.3 | ' |
Fair Value, Measurements, Recurring [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 625.4 | 620.1 | ' |
Fair Value, Measurements, Recurring [Member] | Common collective funds - other [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 87.2 | 39.7 | ' |
Fair Value, Measurements, Recurring [Member] | Limited partnership [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 78.8 | 79.9 | ' |
Fair Value, Measurements, Recurring [Member] | Real Estate [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 145.6 | 128.6 | ' |
Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 155.9 | 163.6 | ' |
Fair Value, Measurements, Recurring [Member] | Other assets [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0.7 | 0.7 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 944.9 | 981.4 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 3.3 | 3.1 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 175 | 193.9 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities Non Investment Grade [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 299.2 | 347.2 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 311.5 | 273.6 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Asset backed securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - equities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - other [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Limited partnership [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Real Estate [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 155.9 | 163.6 | ' |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Other assets [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 2,245.80 | 2,020.80 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 360.7 | 76.9 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 13.4 | 32.3 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 301.1 | 263.7 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities Non Investment Grade [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 110.1 | 103.9 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 1.4 | 0.4 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Asset backed securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 38.2 | 55.4 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - equities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 195.6 | 350.1 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 387.5 | 365.3 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 625.4 | 620.1 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - other [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 87.2 | 39.7 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Limited partnership [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Real Estate [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 124.5 | 112.3 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Other assets [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0.7 | 0.7 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 99.9 | 96.2 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Debt Securities Non Investment Grade [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Asset backed securities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - equities [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - other [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Limited partnership [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 78.8 | 79.9 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Real Estate [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 21.1 | 16.3 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Other assets [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | $0 | $0 | ' |
Recovered_Sheet1
Retirement Benefit Plans (Details 10) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | $96.20 | $90.20 |
Purchases | 8.8 | 18.4 |
Sales | -12.1 | -10 |
Realized losses | -6.3 | -3.4 |
Unrealized gains (losses) | 13.3 | 1 |
Ending balance | 99.9 | 96.2 |
Limited Partnerships [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | 79.9 | 83.6 |
Purchases | 5.3 | 7.1 |
Sales | -11.5 | -8.5 |
Realized losses | -6.2 | -3.4 |
Unrealized gains (losses) | 11.3 | 1.1 |
Ending balance | 78.8 | 79.9 |
Real Estate [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Beginning balance | 16.3 | 6.6 |
Purchases | 3.5 | 11.3 |
Sales | -0.6 | -1.5 |
Realized losses | -0.1 | 0 |
Unrealized gains (losses) | 2 | -0.1 |
Ending balance | $21.10 | $16.30 |
Recovered_Sheet2
Retirement Benefit Plans (Details 11) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employer Contributions to defined benefit plans | ' | ' | ' |
Company contributions | $28.50 | $24.90 | $26.40 |
Pension Plan, Defined Benefit [Member] | ' | ' | ' |
Employer Contributions to defined benefit plans | ' | ' | ' |
Company contributions | 120.7 | 325.8 | ' |
2014 (planned) | $20 | ' | ' |
Recovered_Sheet3
Retirement Benefit Plans (Details 12) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future pension benefit payments | ' |
2014 | $233.40 |
2015 | 253.9 |
2016 | 223.7 |
2017 | 224 |
2018 | 231.9 |
2019-2023 | $1,094.40 |
Recovered_Sheet4
Retirement Benefit Plans (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 21, 2011 | |
Retirement Benefit Plans (Textual) [Abstract] | ' | ' | ' | ' |
Company contributions / payments | $28,500,000 | $24,900,000 | $26,400,000 | ' |
Discount rate to defined pension plans | 3.80% | 4.85% | 5.50% | ' |
Expected long-term return on plan assets | 5.00% | 5.00% | 5.00% | ' |
Defined benefit plans are included in the other non-current assets on the Consolidated Balance Sheets | 342,600,000 | 200,000 | ' | ' |
Current portion of accrued pension cost, included in salaries, wages and benefits | 6,500,000 | 6,700,000 | ' | ' |
Current portion of accrued pension cost relates to unfunded plans and represents the actuarial present value of expected payments | 'next 12 months | ' | ' | ' |
Projected benefit obligation | 600,600,000 | ' | ' | ' |
Accumulated benefit obligations | 585,800,000 | ' | ' | ' |
Fair value of plan assets | 415,600,000 | ' | ' | ' |
Pension accumulated benefit obligation | 3,000,000,000 | 3,400,000,000 | ' | ' |
Percentage Increase in Value of Pension Assets Due to Investment Performance | 0.00% | ' | ' | ' |
Master trust received from receiver | ' | ' | ' | 25,800,000 |
Company common stock | 5,701,671 | ' | ' | ' |
Fair value of company common stock | 314,000,000 | ' | ' | ' |
Dividends | 5,500,000 | 6,300,000 | 5,700,000 | ' |
Pension Plan, Defined Benefit [Member] | ' | ' | ' | ' |
Retirement Benefit Plans (Textual) [Abstract] | ' | ' | ' | ' |
Company contributions / payments | 120,700,000 | 325,800,000 | ' | ' |
Percentage point reduction in the expected rate of return | 0.25% | ' | ' | ' |
Pension Expense increase from reduction in discount rate in 2013 | 5,300,000 | ' | ' | ' |
Expected long-term return on plan assets | 7.25% | ' | ' | ' |
Pension Expense increase from expected rate of return in 2013 | 6,600,000 | ' | ' | ' |
Expected amortization of net actuarial loss | 71,000,000 | ' | ' | ' |
Expected amortization of prior service cost | $3,900,000 | ' | ' | ' |
U.S. Plans [Member] | ' | ' | ' | ' |
Retirement Benefit Plans (Textual) [Abstract] | ' | ' | ' | ' |
Discount rate to defined pension plans | 4.00% | 5.00% | 5.75% | ' |
Expected long-term return on plan assets | 8.00% | 8.25% | 8.50% | ' |
Defined benefit pensin plan percentage of benefit obligation | 84.00% | ' | ' | ' |
Defined benefit pension plan percentage of fair value of plan assets | 87.00% | ' | ' | ' |
Scenario, Forecast [Member] | U.S. Plans [Member] | ' | ' | ' | ' |
Retirement Benefit Plans (Textual) [Abstract] | ' | ' | ' | ' |
Discount rate to defined pension plans | 5.02% | ' | ' | ' |
Postretirement_Benefit_Plans_D
Postretirement Benefit Plans (Details) (Postretirement Benefit Plans [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Postretirement Benefit Plans [Member] | ' | ' | ' |
Components of net periodic benefit cost: | ' | ' | ' |
Service cost | $2.90 | $2.50 | $2.50 |
Interest cost | 21.7 | 28.4 | 32.9 |
Expected return on plan assets | -11.1 | -10.6 | -4.4 |
Amortization of prior service credit | -0.2 | -0.2 | -0.3 |
Amortization of net actuarial loss | 2.3 | 2.5 | 2.9 |
Net periodic benefit cost | $15.60 | $22.60 | $33.60 |
Postretirement_Benefit_Plans_D1
Postretirement Benefit Plans (Details 1) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Assumptions: | ' | ' | ' |
Discount rate | 3.80% | 4.85% | 5.50% |
Rate of return | 5.00% | 5.00% | 5.00% |
Postretirement_Benefit_Plans_D2
Postretirement Benefit Plans (Details 2) (Postretirement Benefit Plans [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Postretirement Benefit Plans [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation at beginning of year | $639.20 | $628.60 | ' |
Service cost | 2.9 | 2.5 | 2.5 |
Interest cost | 21.7 | 28.4 | 32.9 |
Amendments | 0 | 0.9 | ' |
Actuarial (gains) losses | -101.9 | 24.5 | ' |
Benefits paid | -46.3 | -45.7 | ' |
Benefit obligation at end of year | $515.60 | $639.20 | $628.60 |
Postretirement_Benefit_Plans_D3
Postretirement Benefit Plans (Details 3) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in plan assets: | ' | ' | ' |
Company contributions / payments | $28.50 | $24.90 | $26.40 |
Postretirement Benefit Plans [Member] | ' | ' | ' |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets at beginning of year | 221.9 | 170.9 | ' |
Actual return on plan assets | 27.2 | 9.8 | ' |
Company contributions / payments | 37.3 | 86.9 | ' |
Benefits paid | -46.3 | -45.7 | ' |
Fair value of plan assets at end of year | 240.1 | 221.9 | ' |
Funded status at end of year | ($275.50) | ($417.30) | ' |
Postretirement_Benefit_Plans_D4
Postretirement Benefit Plans (Details 4) (Postretirement Benefit Plans [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Postretirement Benefit Plans [Member] | ' | ' |
Amounts recognized on the Consolidated Balance Sheets: | ' | ' |
Current liabilities | ($41.60) | ($45.50) |
Non-current liabilities | -233.9 | -371.8 |
Total | ($275.50) | ($417.30) |
Postretirement_Benefit_Plans_D5
Postretirement Benefit Plans (Details 5) (Postretirement Benefit Plans [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Postretirement Benefit Plans [Member] | ' | ' | ' |
Amounts recognized in accumulated other comprehensive loss: | ' | ' | ' |
Net actuarial loss | $5.50 | $125.70 | ' |
Net prior service cost | 7.8 | 7.6 | ' |
Accumulated other comprehensive loss | $13.30 | $133.30 | $109.50 |
Postretirement_Benefit_Plans_D6
Postretirement Benefit Plans (Details 6) (Postretirement Benefit Plans [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Postretirement Benefit Plans [Member] | ' | ' |
Changes in plan assets and benefit obligations recognized in AOCL: | ' | ' |
AOCI at beginning of year | $133.30 | $109.50 |
Net actuarial (gain) loss | -117.9 | 25.2 |
Prior service cost | 0 | 0.9 |
Recognized net actuarial loss | -2.3 | -2.5 |
Recognized prior service credit | 0.2 | 0.2 |
Total recognized in accumulated other comprehensive loss at December 31 | $13.30 | $133.30 |
Postretirement_Benefit_Plans_D7
Postretirement Benefit Plans (Details 7) (Postretirement Benefit Plans [Member]) | Dec. 31, 2013 | Dec. 31, 2012 |
Postretirement Benefit Plans [Member] | ' | ' |
Assumptions: | ' | ' |
Discount rate | 4.59% | 3.80% |
Rate of return | 5.00% | 5.00% |
Postretirement_Benefit_Plans_D8
Postretirement Benefit Plans (Details 8) (Postretirement Benefit Plans [Member]) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Equity securities [Member] | Equity securities [Member] | Debt Securities [Member] | Debt Securities [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | |||
Equity securities [Member] | Debt Securities [Member] | Equity securities [Member] | Debt Securities [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Target Allocation | ' | ' | ' | ' | ' | ' | 45.00% | 45.00% | 55.00% | 55.00% |
Actual Asset Allocation | 100.00% | 100.00% | 55.00% | 49.00% | 45.00% | 51.00% | ' | ' | ' | ' |
Postretirement_Benefit_Plans_D9
Postretirement Benefit Plans (Details 9) (Postretirement Benefit Plans [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Assets: | ' | ' | ' |
Total Assets | $240.10 | $221.90 | $170.90 |
Fair Value, Measurements, Recurring [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 240.1 | 221.9 | ' |
Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 2.9 | 2.1 | ' |
Fair Value, Measurements, Recurring [Member] | Common collective funds - equity [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 82.7 | 65.6 | ' |
Fair Value, Measurements, Recurring [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 49.7 | 43.4 | ' |
Fair Value, Measurements, Recurring [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 104.8 | 110.8 | ' |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Common collective funds - equity [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 240.1 | 221.9 | ' |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 2.9 | 2.1 | ' |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Common collective funds - equity [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 82.7 | 65.6 | ' |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 49.7 | 43.4 | ' |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 104.8 | 110.8 | ' |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Cash and cash equivalents [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Common collective funds - equity [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | International Equity Funds [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | 0 | 0 | ' |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Common collective funds - fixed income [Member] | ' | ' | ' |
Assets: | ' | ' | ' |
Total Assets | $0 | $0 | ' |
Recovered_Sheet5
Postretirement Benefit Plans (Details 10) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employer contributions to defined postretirement benefit plans | ' | ' | ' |
Company contributions | $28.50 | $24.90 | $26.40 |
VEBA [Member] | ' | ' | ' |
Employer contributions to defined postretirement benefit plans | ' | ' | ' |
Company contributions | 0 | 50 | ' |
2014 (planned) | $0 | ' | ' |
Recovered_Sheet6
Postretirement Benefit Plans (Details 11) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future pension benefit payments | ' |
2014 | $233.40 |
2015 | 253.9 |
2016 | 223.7 |
2017 | 224 |
2018 | 231.9 |
2019-2023 | 1,094.40 |
Gross [Member] | ' |
Future pension benefit payments | ' |
2014 | 53.6 |
2015 | 52 |
2016 | 50.5 |
2017 | 49 |
2018 | 47.6 |
2019-2023 | 206.6 |
Expected Medicare Subsidies [Member] | ' |
Future pension benefit payments | ' |
2014 | 2.7 |
2015 | 2.9 |
2016 | 3.1 |
2017 | 3.2 |
2018 | 3.2 |
2019-2023 | 15.7 |
Net Including Medicare Subsidies [Member] | ' |
Future pension benefit payments | ' |
2014 | 50.9 |
2015 | 49.1 |
2016 | 47.4 |
2017 | 45.8 |
2018 | 44.4 |
2019-2023 | $190.90 |
Recovered_Sheet7
Postretirement Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Postretirement Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Discount rate related to the postretirement plans | 3.80% | 4.85% | 5.50% |
Discount rate related to the postretirement plans in 2013 | 4.59% | ' | ' |
Current portion of accrued postretirement benefit cost, included in salaries, wages and benefits | $6,500,000 | $6,700,000 | ' |
Current portion of accrued pension cost relates to unfunded plans and represents the actuarial present value of expected payments | 'next 12 months | ' | ' |
Health care cost trend Rate year | '2023 | ' | ' |
Weighted Average annual rate of increase in per capita for prescription drug benefits and HMO benefits, declining | 5.00% | ' | ' |
Weighted Average annual rate of increase for prescription drug benefits and HMO benefits in 2013 | 9.25% | ' | ' |
Postretirement Benefit Plans [Member] | ' | ' | ' |
Postretirement Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Discount rate related to the postretirement plans | 5.00% | ' | ' |
Percentage point reduction in the expected rate of return | 0.25% | ' | ' |
Increase in expense related to postretirement benefit in 2013 | 500,000 | ' | ' |
Expected rate of return related to VEBA assets in 2013 | 5.00% | ' | ' |
Percentage of reduction in expected rate of return related to VEBA assets | 0.25% | ' | ' |
Increase in Pension Expense | 600,000 | ' | ' |
Current portion of accrued postretirement benefit cost, included in salaries, wages and benefits | 41,600,000 | 45,500,000 | ' |
Expected amortization of net actuarial loss | 0 | ' | ' |
Expected amortization of prior service cost | 1,400,000 | ' | ' |
Weighted average annual rate of increase in the per capita cost for medical benefits in 2013 | 7.25% | ' | ' |
Weighted average annual rate of increase in the per capita cost for medical benefits declining gradually | 5.00% | ' | ' |
Weighted average annual rate of increase in the per capita cost for medical benefits declining gradually in 2013 | 7.25% | ' | ' |
Effect of one percentage point increase on service and interest cost components | 500,000 | ' | ' |
Effect of one percentage point increase on accumulated postretirement benefit obligation | 10,400,000 | ' | ' |
Effect of one percentage point decrease on service and interest cost components | 400,000 | ' | ' |
Effect of one percentage point decrease on accumulated postretirement benefit obligation | 9,500,000 | ' | ' |
Expected subsidy for 2012 | 3,100,000 | ' | ' |
Expected subsidy received prior to Dec. 31, 2012 | $1,400,000 | ' | ' |
Health Maintenance Organization (HMO) [Member] | ' | ' | ' |
Postretirement Benefit Plans (Textual) [Abstract] | ' | ' | ' |
Health care cost trend Rate year | '2031 | ' | ' |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales, Domestic | ' | ' | ' | ' | ' | ' | ' | ' | $80.10 | $107.40 | $124.40 |
Net sales | 1,063.30 | 1,061.50 | 1,126.50 | 1,089.90 | 1,080.30 | 1,142.50 | 1,343.20 | 1,421 | 4,341.20 | 4,987 | 5,170.20 |
Property, Plant and Equipment - net | 1,558.10 | ' | ' | ' | 1,405.30 | ' | ' | ' | 1,558.10 | 1,405.30 | 1,308.90 |
United States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales, Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 2,887.70 | 3,420.30 | 3,494.60 |
Long-lived assets, Domestic | 1,199.40 | ' | ' | ' | 1,055.70 | ' | ' | ' | 1,199.40 | 1,055.70 | 963.1 |
Canada and Mexico [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales, Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 258.9 | 275.1 | 268.4 |
Long-lived assets, Domestic | 12.6 | ' | ' | ' | 6.1 | ' | ' | ' | 12.6 | 6.1 | 16.3 |
South America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales, Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 141.8 | 153.5 | 186 |
Long-lived assets, Domestic | 2.1 | ' | ' | ' | 4.4 | ' | ' | ' | 2.1 | 4.4 | 6.2 |
EMEA [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales, Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 574 | 594.2 | 652.3 |
Long-lived assets, Domestic | 105.5 | ' | ' | ' | 101.6 | ' | ' | ' | 105.5 | 101.6 | 102 |
Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales, Domestic | ' | ' | ' | ' | ' | ' | ' | ' | 478.8 | 543.9 | 568.9 |
Long-lived assets, Domestic | $238.50 | ' | ' | ' | $237.50 | ' | ' | ' | $238.50 | $237.50 | $221.30 |
Segment_Information_Details_1
Segment Information (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | $533.40 | $771.10 | $808.50 | |||||
Segment Reporting Unallocated Corporate Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 82.5 | 84.4 | 80.8 | |||||
Receipt of Continued Dumping and Subsidy Offset Act Payment, Net of Unallocated Expenses | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 108 | 0 | |||||
Segment Reporting Intersegment Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -1.7 | 0.5 | -0.3 | |||||
Net sales to external customers: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Net sales to external customers | 1,063.30 | 1,061.50 | 1,126.50 | 1,089.90 | 1,080.30 | 1,142.50 | 1,343.20 | 1,421 | 4,341.20 | 4,987 | 5,170.20 | |||||
Intersegment sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | 80.1 | 107.4 | 124.4 | |||||
Segment EBIT: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Separation Costs | -13 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ' | ' | ' | ' | -13 | [1] | 0 | 0 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -24.4 | -31.1 | -36.8 | |||||
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | 1.9 | 2.9 | 5.6 | |||||
Income Before Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | 417.1 | 766 | 696.8 | |||||
Assets employed at year-end: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets employed at year-end | 4,477.90 | ' | ' | ' | 4,244.20 | ' | ' | ' | 4,477.90 | 4,244.20 | 4,327.40 | |||||
Payments to Acquire Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | 325.8 | 297.2 | 205.3 | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 194.6 | 198 | 192.5 | |||||
Mobile Industries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | 164.7 | 208.1 | 261.8 | |||||
Net sales to external customers: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,474.30 | 1,675 | 1,768.90 | |||||
Intersegment sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | 0.5 | 0.5 | |||||
Assets employed at year-end: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets employed at year-end | 1,051.40 | ' | ' | ' | 1,052.90 | ' | ' | ' | 1,051.40 | 1,052.90 | 1,233.70 | |||||
Payments to Acquire Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | 40.3 | 32.1 | 39.5 | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 50.2 | 60.8 | 70.2 | |||||
Process Industries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | 201.9 | 274.9 | 274.2 | |||||
Net sales to external customers: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,231.70 | 1,337.60 | 1,240.50 | |||||
Intersegment sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | 3.9 | 5.7 | 4.1 | |||||
Assets employed at year-end: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets employed at year-end | 1,096.70 | ' | ' | ' | 1,056.20 | ' | ' | ' | 1,096.70 | 1,056.20 | 979.3 | |||||
Payments to Acquire Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | 80.1 | 72.4 | 54.4 | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 67.4 | 62.2 | 51.8 | |||||
Aerospace and Defense [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | 26.6 | 36.3 | 5.1 | |||||
Net sales to external customers: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 329.5 | 346.9 | 324.1 | |||||
Assets employed at year-end: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets employed at year-end | 555.8 | ' | ' | ' | 480.6 | ' | ' | ' | 555.8 | 480.6 | 526.6 | |||||
Payments to Acquire Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | 7.8 | 14 | 10.6 | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 20.5 | 23.1 | 23.2 | |||||
Steel [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | 140.2 | 251.8 | 267.4 | |||||
Net sales to external customers: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,305.70 | 1,627.50 | 1,836.70 | |||||
Intersegment sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total Intersegment sales | ' | ' | ' | ' | ' | ' | ' | ' | 75.1 | 101.2 | 119.8 | |||||
Assets employed at year-end: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets employed at year-end | 1,198.90 | ' | ' | ' | 921.4 | ' | ' | ' | 1,198.90 | 921.4 | 954.2 | |||||
Payments to Acquire Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | 192.6 | 175.5 | 99.8 | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 53.8 | 49.7 | 45.8 | |||||
Corporate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets employed at year-end: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Assets employed at year-end | 575.1 | ' | ' | ' | 733.1 | ' | ' | ' | 575.1 | 733.1 | 633.6 | |||||
Payments to Acquire Property, Plant, and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 3.2 | 1 | |||||
Depreciation and amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | $2.70 | $2.20 | $1.50 | |||||
[1] | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. |
Segment_Information_Details_Te
Segment Information (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
segment | |
Segment Reporting Information [Line Items] | ' |
Number of reporting segments | 4 |
Maximum percentage of steel consuming in bearing operation | 10.00% |
Maximum percentage of export sale to revenue | 10.00% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | ' | ' | ' |
United States | $314.50 | $680.80 | $527.60 |
Non-United States | 102.6 | 85.2 | 169.2 |
Income Before Income Taxes | 417.1 | 766 | 696.8 |
Current: | ' | ' | ' |
Federal | 99.9 | 103.5 | 53.8 |
State and local | 14.4 | 7.2 | 6.8 |
Foreign | 39.3 | 36.3 | 55.1 |
Current income tax expenses Total | 153.6 | 147 | 115.7 |
Deferred: | ' | ' | ' |
Federal | -3.4 | 105.2 | 117.7 |
State and local | 2.9 | 18.1 | 11.7 |
Foreign | 1 | -0.2 | -4.9 |
Deferred income tax provision | 0.5 | 123.1 | 124.5 |
United States and foreign tax expense on income | $154.10 | $270.10 | $240.20 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of variation of effective income tax rate from continuing operations from the statutory federal income tax rate | ' | ' | ' |
Income tax at the U.S. federal statutory rate | $146 | $268.10 | $243.90 |
Adjustments: | ' | ' | ' |
State and local income taxes, net of federal tax benefit | 10.9 | 15.6 | 11.2 |
Tax on foreign remittances and U.S. tax on foreign income | 41 | 9.5 | 15.3 |
Deferred Tax Liability on Foreign Earnings Repatriated | 8.7 | 0 | 0 |
Foreign losses without current tax benefits | 9.5 | 16.1 | 7.7 |
Foreign earnings taxed at different rates including tax holidays | -4.4 | -18.1 | -26.4 |
U.S. domestic manufacturing deduction | -11.3 | -7.5 | -6.6 |
U.S. foreign tax credit | -25.9 | -13.7 | 0 |
U.S. research tax credit | -3.8 | -0.4 | -1.5 |
Accruals and settlements related to tax audits | -16.9 | 4.3 | 1.2 |
Other items, net | 0.3 | -3.8 | -4.6 |
United States and foreign tax expense on income | $154.10 | $270.10 | $240.20 |
Effective income tax rate | 36.90% | 35.30% | 34.50% |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accrued postretirement benefits cost | $130.10 | $185 |
Accrued pension cost | 0 | 137.1 |
Inventory | 4 | 15.4 |
Other employee benefit accruals | 20.3 | 26.6 |
Tax loss and credit carryforwards | 166.7 | 145.1 |
Other, net | 52.6 | 59.9 |
Valuation allowances | -195.9 | -183.9 |
Total deferred tax assets | 177.8 | 385.2 |
Pension assets | -33.4 | 0 |
Deferred tax liabilities - principally depreciation and amortization | -239 | -231.9 |
Net deferred tax assets | ($94.60) | $153.30 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of unrecognized tax benefits for the years ended | ' | ' |
Beginning balance, January 1 | $112.60 | $87.20 |
Tax positions related to the current year Additions | 9.3 | 20.6 |
Tax positions related to prior years Addtiions | 6.9 | 7 |
Tax positions related to prior years Reductions | -1.4 | -1.7 |
Settlements with tax authorities | -77.9 | 0 |
Lapses in statutes of limitations | 0 | -0.5 |
Ending balance, December 31 | $49.50 | $112.60 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Affiliates | Affiliates | Affiliates | |||
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' |
Income taxes paid | ' | ' | $111.20 | $121 | $0 |
Effective tax rate on the pretax income relative to U.S. federal statutory | ' | ' | 35.00% | ' | ' |
cash repatriation | 123 | 365 | ' | ' | ' |
tax expense on cash repatriation | ' | 26 | ' | ' | ' |
Affiliates in Asia | ' | ' | 1 | 1 | 2 |
Income tax holiday termination date | ' | ' | 'expiration in 2018 | ' | ' |
Income tax reduced due tax holidays | ' | ' | 0.7 | 1 | 1 |
Increase in earnings per diluted share due to saving from income tax | ' | ' | $0.01 | $0.01 | $0.01 |
Undistributed earnings of foreign subsidiaries that are outside of US | ' | ' | 577.9 | 544 | ' |
Deferred Tax Liability on Foreign Earnings Repatriated | ' | ' | 8.7 | 0 | 0 |
Valuation allowance against operating loss carryforwards | ' | 162.2 | 162.2 | ' | ' |
Valuation allowances against loss carryforwards | ' | 33.7 | 33.7 | ' | ' |
Total gross unrecognized tax benefits | ' | 49.5 | 49.5 | 112.6 | 87.2 |
Unrecognized tax benefits if recognized would impact effective tax rate | ' | 35.8 | 35.8 | 47.5 | ' |
Minimum amount of estimated decrease in unrecognized tax positions | ' | 30 | 30 | ' | ' |
Maximum amount of estimated decrease in unrecognized tax positions | ' | 35 | 35 | ' | ' |
Accrued interest and penalties related to uncertain tax positions | ' | 9.8 | 9.8 | 11.3 | ' |
Foreign Earnings Repatriated | ' | ' | 136.1 | ' | ' |
Earnings Reinvested Outside of U.S. | ' | ' | 441.8 | ' | ' |
Taxes on Earnings Invested Outside of U.S. | ' | ' | 23.3 | ' | ' |
Domestic Country [Member] | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' |
Tax credit carryforwards | ' | 19.9 | 19.9 | ' | ' |
Income tax examination year | ' | ' | '2006 | ' | ' |
Foreign Country [Member] | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | 143.4 | 143.4 | ' | ' |
Tax credit carryforwards | ' | 0.2 | 0.2 | ' | ' |
Income tax examination year | ' | ' | '2002 | ' | ' |
State and Local [Member] | ' | ' | ' | ' | ' |
Income Taxes (Textual) [Abstract] | ' | ' | ' | ' | ' |
Operating Loss Carryforwards | ' | 1 | 1 | ' | ' |
Tax credit carryforwards | ' | $2.10 | $2.10 | ' | ' |
Fair_Value_Details
Fair Value (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Assets and Liabilities Measured at fair value on a recurring basis | ' | ' |
Cash and cash equivalents | $384.60 | $586.40 |
Restricted Cash | 15.1 | 15.1 |
Short-term investments | 13.9 | 17.3 |
Foreign currency hedges | 0.9 | 1.2 |
Total Assets | 414.5 | 620 |
Foreign currency hedges | 9.3 | 1.9 |
Total Liabilities | 9.3 | 1.9 |
Level 1 [Member] | ' | ' |
Assets and Liabilities Measured at fair value on a recurring basis | ' | ' |
Cash and cash equivalents | 320.4 | 303.9 |
Short-term investments | 0 | 0 |
Foreign currency hedges | 0 | 0 |
Total Assets | 320.4 | 303.9 |
Foreign currency hedges | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 [Member] | ' | ' |
Assets and Liabilities Measured at fair value on a recurring basis | ' | ' |
Cash and cash equivalents | 64.2 | 282.5 |
Restricted Cash | 15.1 | 15.1 |
Short-term investments | 13.9 | 17.3 |
Foreign currency hedges | 0.9 | 1.2 |
Total Assets | 94.1 | 316.1 |
Foreign currency hedges | 9.3 | 1.9 |
Total Liabilities | 9.3 | 1.9 |
Level 3 [Member] | ' | ' |
Assets and Liabilities Measured at fair value on a recurring basis | ' | ' |
Cash and cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Foreign currency hedges | 0 | 0 |
Total Assets | 0 | 0 |
Foreign currency hedges | 0 | 0 |
Total Liabilities | $0 | $0 |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value (Textual) [Abstract] | ' | ' |
Machinery and equipment at carrying value | ' | $10.40 |
Machinery and equipment written down, at fair value | ' | 3.8 |
Machinery and equipment, impairment charge | ' | 6.6 |
Maximum maturity period of cash and cash equivalent | '3 months or less | ' |
Maturity period of short-term investments | '4 months to 1 year | ' |
Long-term fixed-rate debt, fair value | 474.5 | 481.3 |
Long-term fixed-rate debt, carrying value | 457.3 | 464.7 |
Fixed Rate Note [Member] | ' | ' |
Fair Value (Textual) [Abstract] | ' | ' |
Long-term fixed-rate debt, carrying value | $441.60 | $424.90 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Details Textual) (Foreign Exchange Forward [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Foreign Exchange Forward [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Foreign Currency Derivative Assets at Fair Value | $516.70 | $97 |
Research_and_Development_Detai
Research and Development (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Research and Development [Abstract] | ' | ' | ' |
Expenditures committed to research and development | $46.10 | $52.60 | $49.60 |
Research and development expenditure funded by others | $0.40 | $0.80 | $0.30 |
Continued_Dumping_and_Subsidy_1
Continued Dumping and Subsidy Offset Act (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 27, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CDSOA [Abstract] | ' | ' | ' | ' |
Continued Dumping and Subsidy Offset Act (expenses) receipts, net | $112.80 | ($2.80) | $108 | ($1.10) |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||||
Quarterly Financial Data | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Net sales | $1,063.30 | $1,061.50 | $1,126.50 | $1,089.90 | $1,080.30 | $1,142.50 | $1,343.20 | $1,421 | $4,341.20 | $4,987 | $5,170.20 | ||||||||||
Gross Profit | 263.7 | 251.7 | 302.1 | 274.5 | 278.5 | 298.9 | 377.3 | 411.6 | 1,092 | 1,366.30 | 1,369.70 | ||||||||||
Impairment and restructuring charges | 4.8 | [1] | 3.7 | [1] | 6.7 | [1] | 1.2 | [1] | 0.7 | [2] | 11.9 | [2] | 16.7 | [2] | 0.2 | [2] | 16.4 | [1] | 29.5 | [2] | 14.4 |
Separation Costs | 13 | [3] | 0 | [3] | 0 | [3] | 0 | [3] | ' | ' | ' | ' | 13 | [3] | 0 | 0 | |||||
Net Income | 52.7 | [4] | 52.5 | [4] | 82.8 | [4] | 75 | [4] | 75.4 | [5] | 81.1 | [5] | 183.4 | [5] | 156 | [5] | 263 | [4] | 495.9 | [5] | 456.6 |
Net income attributable to noncontrolling interest | 0.1 | 0.3 | 0 | -0.1 | 0.1 | 0.2 | -0.2 | 0.3 | 0.3 | 0.4 | 2.3 | ||||||||||
Net Income Attributable to The Timken Company | 52.6 | 52.2 | 82.8 | 75.1 | 75.3 | 80.9 | 183.6 | 155.7 | 262.7 | 495.5 | 454.3 | ||||||||||
Net income per share - Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Basic earnings per share (in dollars per share) | $0.56 | $0.55 | $0.86 | $0.78 | $0.79 | $0.84 | $1.88 | $1.59 | $2.76 | $5.11 | $4.65 | ||||||||||
Net income per share - Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Diluted earnings per share (in dollars per share) | $0.55 | $0.54 | $0.86 | $0.77 | $0.78 | $0.83 | $1.86 | $1.58 | $2.74 | $5.07 | $4.59 | ||||||||||
Dividends per share (in dollars per share) | $0.23 | $0.23 | $0.23 | $0.23 | $0.23 | $0.23 | $0.23 | $0.23 | $0.92 | $0.92 | $0.78 | ||||||||||
Quarterly Financial Data (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Severance expense and related benefit costs | 6 | 3.2 | 6 | ' | ' | 1.3 | 16.5 | ' | 16.3 | 18.4 | 0.1 | ||||||||||
Curtailment of pension benefits | 0.4 | 1.5 | 5.2 | ' | ' | ' | ' | ' | ' | 10.7 | ' | ||||||||||
Impairment charges | 0.7 | ' | ' | ' | ' | ' | ' | ' | 0.7 | 6.6 | 0.5 | ||||||||||
Exit costs | 1.9 | 0.5 | 0.7 | ' | ' | 4.2 | 0.2 | ' | -0.6 | 4.5 | 13.8 | ||||||||||
Gains (Losses) on Sales of Other Real Estate | 5.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Impairment charges | ' | ' | ' | ' | ' | 6.4 | ' | ' | 0.7 | 6.6 | 3.3 | ||||||||||
CDSOA receipts | ' | ' | ' | ' | ' | ' | $109.50 | ' | ' | ' | ' | ||||||||||
[1] | Impairment and restructuring charges for the second quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $5.2 million, and exit costs of $0.7 million. Impairment and restructuring charges for the third quarter of 2013 included severance and related benefit costs of $3.2 million, including pension settlement costs of $1.5 million, and exit costs of $0.5 million. Impairment and restructuring charges for the fourth quarter of 2013 included severance and related benefit costs of $6.0 million, including pension settlement costs of $0.4 million, impairment charges of $0.7 million and a favorable adjustment for exit costs of $1.9 million. | ||||||||||||||||||||
[2] | Impairment and restructuring charges for the second quarter of 2012 included severance and related benefit costs of $16.5 million, including a curtailment of pension benefits of $10.7 million, and exit costs of $0.2 million. Impairment and restructuring charges for the third quarter of 2012 included impairment charges of $6.4 million, severance and related benefit costs of $1.3 million and exit costs of $4.2 million. | ||||||||||||||||||||
[3] | Separation costs of $13.0 million for the fourth quarter of 2013 related to the planned spinoff of the steel business. | ||||||||||||||||||||
[4] | Net income for the fourth quarter of 2013 included a gain of $5.4 million on the sale of real estate in Brazil. | ||||||||||||||||||||
[5] | Net income for the second quarter of 2012 included CDSOA receipts of $109.5 million, net of expenses. |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | |||
Allowance for uncollectible accounts [Member] | ' | ' | ' | ' | |||
Valuation and Qualifying Accounts | ' | ' | ' | ' | |||
Balance at Beginning of Period | $12.10 | ' | $19 | $27.60 | |||
Charged to Costs and Expenses | 1.5 | [1] | 7.6 | [1] | 14.4 | [1] | ' |
Charged to Other Accounts | 0 | [2] | -0.6 | [2] | -2.5 | [2] | ' |
Deductions | 3.3 | [3] | 13.9 | [3] | 20.5 | [3] | ' |
Balance at End of Period | 10.3 | 12.1 | ' | 27.6 | |||
Allowance for surplus and obsolete inventory [Member] | ' | ' | ' | ' | |||
Valuation and Qualifying Accounts | ' | ' | ' | ' | |||
Balance at Beginning of Period | 21.4 | ' | 30.9 | 30.8 | |||
Charged to Costs and Expenses | 11.2 | [4] | 10.8 | [4] | 12.2 | [4] | ' |
Charged to Other Accounts | 0.2 | [2] | 1.2 | [2] | 5.2 | [2] | ' |
Deductions | 12.5 | [5] | 21.5 | [5] | 17.3 | [5] | ' |
Balance at End of Period | 20.3 | 21.4 | ' | 30.8 | |||
Valuation allowance on deferred tax assets | ' | ' | ' | ' | |||
Valuation and Qualifying Accounts | ' | ' | ' | ' | |||
Balance at Beginning of Period | 183.9 | ' | 179.7 | 174.9 | |||
Charged to Costs and Expenses | 32.1 | [6] | 13.8 | [6] | 22.6 | [6] | ' |
Charged to Other Accounts | -4.2 | [7] | 13.8 | [7] | -3.9 | [7] | ' |
Deductions | 15.9 | [8] | 23.4 | [8] | 13.9 | [8] | ' |
Balance at End of Period | $195.90 | $183.90 | ' | $174.90 | |||
[1] | Provision for uncollectible accounts included in expenses. | ||||||
[2] | Currency translation and change in reserves due to acquisitions, net of divestitures. | ||||||
[3] | Actual accounts written off against the allowance—net of recoveries. | ||||||
[4] | Provisions for surplus and obsolete inventory included in expenses. | ||||||
[5] | Inventory items written off against the allowance. | ||||||
[6] | Increase in valuation allowance is recorded as a component of the provision for income taxes. | ||||||
[7] | Includes valuation allowances recorded against other comprehensive income/loss or goodwill. | ||||||
[8] | Amount primarily relates to the reversal of valuation allowances due to the realization of net operating loss carryforwards. |