Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 31-Mar-15 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | Timken Co. |
Entity Central Index Key | 98362 |
Current Fiscal Year End Date | -19 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 86,393,845 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Net sales | $722.50 | $736.80 |
Cost of products sold | 520 | 518.7 |
Gross Profit | 202.5 | 218.1 |
Selling, general and administrative expenses | 128.5 | 141.8 |
Impairment and restructuring charges | 6.2 | 3.2 |
Pension Settlement Charges | 215.2 | 0.7 |
Operating Income | -147.4 | 72.4 |
Interest expense | -8 | -5.5 |
Investment Income, Interest | 0.7 | 1 |
Gains (Losses) on Sales of Other Real Estate | 0 | 22.6 |
Other income (expense), net | -1.4 | -2.2 |
Income From Continuing Operations Before Income Taxes | -156.1 | 88.3 |
Provision for income taxes | -21.3 | 28 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | -134.8 | 60.3 |
Income from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 23.5 |
Net Income | -134.8 | 83.8 |
Income (Loss) from Continuing Operations Attributable to Parent | -135.2 | 60 |
Net income attributable to noncontrolling interest | 0.4 | 0.3 |
Net (loss) Income attributable to The Timken Company | ($135.20) | $83.50 |
Net Income per Common Share attributable to The Timken Company Common Shareholders | ||
Income (Loss) from Continuing Operations, Per Basic Share | ($1.54) | $0.64 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | $0 | $0.26 |
Basic earnings per share | ($1.54) | $0.90 |
Income (Loss) from Continuing Operations, Per Diluted Share | ($1.54) | $0.64 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | $0 | $0.26 |
Diluted earnings per share | ($1.54) | $0.90 |
Common Stock, Dividends, Per Share, Declared | $0.25 | $0.25 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | ($134.80) | $83.80 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | -27.8 | -0.6 |
Pension and postretirement liability adjustment (net of the income tax benefit of $60.3 million) | 105.1 | 13.2 |
Other comprehensive income | 77.3 | 12.6 |
Comprehensive Income | -57.5 | 96.4 |
Less: comprehensive (loss) income attributable to noncontrolling interest | 0.4 | 0.8 |
Comprehensive Income attributable to The Timken Company | ($57.90) | $95.60 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $154.40 | $278.80 |
Restricted cash | 14.8 | 15.3 |
Accounts receivable, less allowances (2015 – $13.3 million; 2014 – $13.7 million) | 491.5 | 475.7 |
Inventories, net | 580.3 | 585.5 |
Deferred income taxes | 49.1 | 49.9 |
Deferred charges and prepaid expenses | 27 | 25.2 |
Other current assets | 46.7 | 51.5 |
Total Current Assets | 1,363.80 | 1,481.90 |
Property, Plant and Equipment, net | 760.2 | 780.5 |
Other Assets | ||
Goodwill | 256.6 | 259.5 |
Non-current pension assets | 109.6 | 176.2 |
Other intangible assets | 230.1 | 239.8 |
Deferred income taxes | 35.9 | 11.2 |
Other non-current assets | 64.2 | 52.3 |
Total Other Assets | 696.4 | 739 |
Total Assets | 2,820.40 | 3,001.40 |
Current Liabilities | ||
Short-term debt | 3.6 | 7.4 |
Current portion of long-term debt | 0.1 | 0.6 |
Accounts payable, trade | 168.4 | 143.9 |
Salaries, wages and benefits | 107 | 146.7 |
Income taxes payable | 108.3 | 80.2 |
Other current liabilities | 132 | 155 |
Total Current Liabilities | 519.4 | 533.8 |
Non-Current Liabilities | ||
Long-term debt | 519.7 | 522.1 |
Accrued pension cost | 158.1 | 165.9 |
Accrued postretirement benefits cost | 137.8 | 141.8 |
Other non-current liabilities | 69.2 | 48.7 |
Total Non-Current Liabilities | 884.8 | 878.5 |
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, Value, Issued | 53.1 | 53.1 |
Other paid-in capital | 895.6 | 899.4 |
Earnings invested in the business | 1,458.30 | 1,615.40 |
Accumulated other comprehensive loss | -405.2 | -482.5 |
Treasury shares at cost (2015 - 11,981,290 shares; 2014 - 9,783,375 shares) | -598.8 | -509.2 |
Total Shareholders' Equity | 1,403 | 1,576.20 |
Noncontrolling Interest | 13.2 | 12.9 |
Total Equity | 1,416.20 | 1,589.10 |
Total Liabilities and Shareholders' Equity | $2,820.40 | $3,001.40 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $13.30 | $13.70 |
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 | 11,981,290 | 9,783,375 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Activities | ||
Net (loss) income attributable to The Timken Company | ($135.20) | $83.50 |
Income from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | -23.5 |
Net income attributable to noncontrolling interest | 0.4 | 0.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 33.5 | 35.1 |
Impairment charges | 2.7 | 0 |
Loss on sale of assets | 0.3 | -23 |
Deferred income tax provision | -84.4 | 0 |
Stock-based compensation expense | 4.1 | 7.6 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | -1 | -2.4 |
Pension and other postretirement expense | 225.1 | 9.5 |
Pension contributions and other postretirement benefit payments | -6.9 | -17.6 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -29.6 | -23.8 |
Inventories | -12.8 | -19.9 |
Accounts payable, trade | 27.9 | 18.1 |
Other accrued expenses | -63.5 | -52 |
Income taxes | 54.7 | 11.1 |
Other, net | 1.7 | -4.3 |
Net Cash Provided by (Used in) Operating Activities, Continuing Operations | 17 | -1.3 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 0 | 41.5 |
Net Cash Provided by Operating Activities | 17 | 40.2 |
Investing Activities | ||
Capital expenditures | -19.7 | -19.1 |
Proceeds from disposals of property, plant and equipment | 2.8 | 5.8 |
Increase (Decrease) in Marketable Securities, Restricted | 2.9 | 2.7 |
Other | 0 | 0.3 |
Net Cash Used in Investing Activities, Continuing Operations | -14 | -10.3 |
Cash Used in Investing Activities, Discontinued Operations | 0 | -34.7 |
Net Cash Used by Investing Activities | -14 | -45 |
Financing Activities | ||
Cash dividends paid to shareholders | -21.9 | -23.1 |
Purchase of treasury shares | -96.8 | -117.7 |
Net proceeds from common share activity | 1.1 | 3.6 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 1 | 2.4 |
Payments on long-term debt | -1.1 | -0.2 |
Short-term debt activity, net | -3.6 | 4.1 |
Increase (Decrease) in Restricted Cash | 0.5 | 0 |
Net Cash Used by Financing Activities | -120.8 | -130.9 |
Effect of exchange rate changes on cash | -6.6 | -0.6 |
(Decrease) increase In Cash and Cash Equivalents | -124.4 | -136.3 |
Cash and cash equivalents beginning of period | 278.8 | 384.6 |
Cash and cash equivalents end of period | $154.40 | $248.30 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 - Basis of Presentation |
The accompanying Consolidated Financial Statements (unaudited) for The Timken Company (the Company) have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by the accounting principles generally accepted in the United States (U.S. GAAP) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to the Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. |
Discontinued_Operations_Notes
Discontinued Operations (Notes) | 3 Months Ended |
Mar. 31, 2015 | |
Spinoff Text Block [Abstract] | |
Spinoff Text Block [Text Block] | On June 30, 2014, the Company completed the tax-free spinoff of its steel business (the Spinoff) into a separate independent publicly traded company, TimkenSteel Corporation (TimkenSteel). The Company's board of directors declared a distribution of all outstanding common shares of TimkenSteel through a dividend. At the close of business on June 30, 2014, the Company's shareholders received one common share of TimkenSteel for every two common shares of the Company they held as of the close of business on June 23, 2014. |
In connection with the Spinoff, the Company and TimkenSteel entered into certain transitional relationships, including a commercial supply agreement for TimkenSteel to supply the Company with certain steel products and other relationships described in the section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 titled "Risks Relating to the Spinoff of TimkenSteel." | |
The operating results, net of tax, included one-time transaction costs of $11.5 million for the first quarter of 2014 in connection with the separation of the two companies. These costs primarily consisted of consulting and professional fees associated with preparing for and executing the Spinoff. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2015 | |
Recent Accounting Pronouncements [Abstract] | |
Description of New Adopted Accounting Pronouncements | Note 2 - Recent Accounting Pronouncements |
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU 2014-09 introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments and assets recognized from the costs to obtain or fulfill a contract. This new accounting guidance is effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period. However, on April 1, 2015, the FASB proposed a one-year deferral of this new accounting guidance, which would result in it being effective for annual periods beginning after December 15, 2017. The Company is currently evaluating the impact of adopting ASU 2014-09 on the Company's results of operations or financial condition. | |
In April 2014, the FASB issued ASU 2014-08, "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360)." ASU 2014-08 amends the requirements for reporting discontinued operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations or that have a major effect on the Company's operations and financial results should be presented as discontinued operations. ASU 2014-08 also requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. This new accounting guidance is effective for annual periods beginning after December 15, 2014. The adoption of this accounting guidance did not have any impact on the Company's results of operations or financial condition. |
Inventories
Inventories | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventory Disclosure [Abstract] | |||||||
Inventories | Note 4 - Inventories | ||||||
The components of inventories were as follows: | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Manufacturing supplies | $ | 25.4 | $ | 25 | |||
Raw materials | 56.5 | 51.3 | |||||
Work in process | 214.9 | 219.3 | |||||
Finished products | 299.6 | 302.7 | |||||
Subtotal | 596.4 | 598.3 | |||||
Allowance for obsolete and surplus inventory | (16.1 | ) | (12.8 | ) | |||
Total Inventories, net | $ | 580.3 | $ | 585.5 | |||
Inventories are valued at the lower of cost or market, with approximately 50% valued by the first-in, first-out (FIFO) method and the remaining 50% valued by the last-in, first-out (LIFO) method. The majority of the Company's domestic inventories are valued by the LIFO method and all of the Company's international (outside the United States) inventories are valued by the FIFO method. | |||||||
An actual valuation of the inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation. | |||||||
The LIFO reserves at March 31, 2015 and December 31, 2014 were $201.6 million and $199.7 million, respectively. The Company recognized an increase in its LIFO reserve of $1.9 million during the first three months of 2015, compared to an increase in its LIFO reserve of $1.3 million during the first three months of 2014. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property, Plant and Equipment | Note 5 - Property, Plant and Equipment | ||||||
The components of property, plant and equipment were as follows: | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Land and buildings | $ | 425.3 | $ | 428.8 | |||
Machinery and equipment | 1,712.70 | 1,735.30 | |||||
Subtotal | 2,138.00 | 2,164.10 | |||||
Accumulated depreciation | (1,377.8 | ) | (1,383.6 | ) | |||
Property, Plant and Equipment, net | $ | 760.2 | $ | 780.5 | |||
Depreciation expense for the three months ended March 31, 2015 and 2014 was $24.0 million and $30.7 million, respectively. | |||||||
During the fourth quarter of 2014, the Company transferred approximately $45 million of capitalized software from property, plant and equipment to intangible assets. The Company did not reclassify the 2013 amounts to conform to the 2014 presentation because management of the Company determined the amount was immaterial to the 2013 Consolidated Balance Sheet. Depreciation expense on capitalized software for the three months ended March 31, 2014 was approximately $3.8 million. | |||||||
Capitalized interest during the three months ended March 31, 2015 and 2014 was zero and $0.8 million, respectively. | |||||||
In November 2013, the Company finalized the sale of its former manufacturing site in Sao Paulo, Brazil (Sao Paulo). The Company expects to receive approximately $31 million over a twenty-four month period, of which $23.6 million was received as of March 31, 2015. The total cost of this transaction, including the net book value of the real estate and broker's commissions, was approximately $3 million. The Company began recognizing the gain on the sale of this site using the installment method. In the first quarter of 2014, the Company changed to the full accrual method of recognizing the gain after it had received 25% of the total sales value. As a result, the Company recognized the remaining gain of $22.6 million ($19.5 million after tax) related to this transaction during the first quarter of 2014. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Goodwill and Other Intangible Assets | Note 6 - Goodwill and Other Intangible Assets | ||||||||||||||||||
The changes in the carrying amount of goodwill for the three months ended March 31, 2015 were as follows: | |||||||||||||||||||
Mobile | Process | Total | |||||||||||||||||
Industries | Industries | ||||||||||||||||||
Beginning balance | $ | 89.6 | $ | 169.9 | $ | 259.5 | |||||||||||||
Other | (0.7 | ) | (2.2 | ) | (2.9 | ) | |||||||||||||
Ending balance | $ | 88.9 | $ | 167.7 | $ | 256.6 | |||||||||||||
“Other” primarily includes foreign currency translation adjustments. | |||||||||||||||||||
The following table displays intangible assets as of March 31, 2015 and December 31, 2014: | |||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||
Intangible assets | |||||||||||||||||||
subject to amortization: | |||||||||||||||||||
Customer relationships | $ | 160.7 | $ | 62.3 | $ | 98.4 | $ | 160.1 | $ | 59 | $ | 101.1 | |||||||
Know-how | 32.2 | 5.5 | 26.7 | 33.4 | 5.1 | 28.3 | |||||||||||||
Industrial license | 0.1 | 0.1 | — | 0.1 | 0.1 | — | |||||||||||||
agreements | |||||||||||||||||||
Land-use rights | 8.7 | 4.8 | 3.9 | 8.7 | 4.7 | 4 | |||||||||||||
Patents | 2.1 | 2 | 0.1 | 2.3 | 2 | 0.3 | |||||||||||||
Technology | 36.7 | 12.3 | 24.4 | 37 | 11.9 | 25.1 | |||||||||||||
Tradenames | 4.8 | 2.9 | 1.9 | 5.4 | 3 | 2.4 | |||||||||||||
PMA licenses | 5.3 | 4.5 | 0.8 | 5.3 | 4.5 | 0.8 | |||||||||||||
Non-compete | 3.3 | 3 | 0.3 | 3.5 | 3.2 | 0.3 | |||||||||||||
agreements | |||||||||||||||||||
Software | 234.7 | 185.6 | 49.1 | 235 | 182 | 53 | |||||||||||||
$ | 488.6 | $ | 283 | $ | 205.6 | $ | 490.8 | $ | 275.5 | $ | 215.3 | ||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||
Tradenames | $ | 15.8 | $ | — | $ | 15.8 | $ | 15.8 | $ | — | $ | 15.8 | |||||||
FAA air agency | 8.7 | — | 8.7 | 8.7 | — | 8.7 | |||||||||||||
certificates | |||||||||||||||||||
$ | 24.5 | $ | — | $ | 24.5 | $ | 24.5 | $ | — | $ | 24.5 | ||||||||
Total intangible assets | $ | 513.1 | $ | 283 | $ | 230.1 | $ | 515.3 | $ | 275.5 | $ | 239.8 | |||||||
Amortization expense for intangible assets was $9.5 million and $4.4 million for the three months ended March 31, 2015 and 2014, respectively. Amortization expense for intangible assets is estimated to be $33.2 million in 2015; $28.8 million in 2016; $25.0 million in 2017; $18.9 million in 2018; and $16.8 million in 2019. |
Financing_Arrangements
Financing Arrangements | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Financing Arrangements | Short-term debt at March 31, 2015 and December 31, 2014 was as follows: | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Borrowings under variable-rate lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 5.13% to 5.89% at March 31, 2015 and interest rates ranging from 0.51% to 5.13% at December 31, 2014. | $ | 3.6 | $ | 7.4 | |||
Short-term debt | $ | 3.6 | $ | 7.4 | |||
The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $220.3 million. Most of these lines of credit are uncommitted. At March 31, 2015, the Company’s foreign subsidiaries had borrowings outstanding of $3.6 million and guarantees of $5.5 million, which reduced the availability under these facilities to $211.2 million. | |||||||
On April 30, 2014, the Company reduced its aggregate borrowing available under its Amended and Restated Asset Securitization Agreement (Asset Securitization Agreement) from $200 million to $100 million. This agreement 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 by certain borrowing base calculations. Any amounts outstanding under the Asset Securitization Agreement would be reported in short-term debt in the Company’s Consolidated Balance Sheet. As of March 31, 2015, the Company had no outstanding borrowings under the Asset Securitization Agreement. However, certain borrowing base limitations reduced the availability of the Asset Securitization Agreement to $88.9 million at March 31, 2015. 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. | |||||||
Long-term debt at March 31, 2015 and December 31, 2014 was as follows: | |||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
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 1, 2024, with an | 344.6 | 346.4 | |||||
interest rate of 3.875% | |||||||
Other | 0.2 | 1.3 | |||||
$ | 519.8 | $ | 522.7 | ||||
Less current maturities | 0.1 | 0.6 | |||||
Long-term debt | $ | 519.7 | $ | 522.1 | |||
The Company has a $500 million Amended and Restated Credit Agreement (Senior Credit Facility), which matures on May 11, 2016. At March 31, 2015, the Company had no outstanding borrowings under the Senior Credit Facility. Under the Senior Credit Facility, the Company has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At March 31, 2015, the Company was in full compliance with both of these covenants under the Senior Credit Facility. | |||||||
On August 20, 2014, the Company issued $350 million of fixed-rated 3.875% senior unsecured notes that mature on September 1, 2024 (2024 Notes). The Company used the net proceeds from the issuance of the 2024 Notes to repay the Company's fixed-rate 6.00% senior unsecured notes that matured on September 15, 2014 and for general corporate purposes. |
Equity
Equity | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
Equity | Note 8 - Equity | |||||||||||||||||||||
The changes in the equity components for the three months ended March 31, 2015 were as follows: | ||||||||||||||||||||||
The Timken Company Shareholders | ||||||||||||||||||||||
Total | Stated | Other | Earnings | Accumulated | Treasury | Non- | ||||||||||||||||
Capital | Paid-In | Invested | Other | Stock | controlling | |||||||||||||||||
Capital | in the | Comprehensive | Interest | |||||||||||||||||||
Business | (Loss) | |||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,589.10 | $ | 53.1 | $ | 899.4 | $ | 1,615.40 | $ | (482.5 | ) | $ | (509.2 | ) | $ | 12.9 | ||||||
Net income | (134.8 | ) | (135.2 | ) | 0.4 | |||||||||||||||||
Foreign currency translation adjustment | (27.8 | ) | (27.8 | ) | — | |||||||||||||||||
Pension and postretirement liability | 105.1 | 105.1 | ||||||||||||||||||||
adjustment (net of the income tax | ||||||||||||||||||||||
benefit of $60.3 million) | ||||||||||||||||||||||
Dissolution of joint venture | (0.1 | ) | (0.1 | ) | ||||||||||||||||||
Dividends – $0.25 per share | (21.9 | ) | (21.9 | ) | ||||||||||||||||||
Excess tax benefit from stock compensation | 1 | 1 | ||||||||||||||||||||
Stock-based compensation expense | 4.1 | 4.1 | ||||||||||||||||||||
Stock purchased at fair market value | (96.8 | ) | (96.8 | ) | ||||||||||||||||||
Stock option exercise activity | 1.1 | (3.8 | ) | 4.9 | ||||||||||||||||||
Restricted shares (issued) surrendered | — | (5.1 | ) | 5.1 | ||||||||||||||||||
Shares surrendered for taxes | (2.8 | ) | (2.8 | ) | ||||||||||||||||||
Balance at March 31, 2015 | $ | 1,416.20 | $ | 53.1 | $ | 895.6 | $ | 1,458.30 | $ | (405.2 | ) | $ | (598.8 | ) | $ | 13.2 | ||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Statement of Financial Position [Abstract] | |||||||||||||
accumulated other comprehensive income components reclassification | Note 9 - Accumulated Other Comprehensive Income (Loss) | ||||||||||||
The following table presents details about components of accumulated other comprehensive income (loss) for the three months ended March 31, 2015 and the three months ended March 31, 2014, respectively: | |||||||||||||
Foreign currency translation adjustments | Pension and postretirement liability adjustments | Change in fair value of derivative financial instruments | Total | ||||||||||
Balance at December 31, 2014 | $ | (0.7 | ) | $ | (481.0 | ) | $ | (0.8 | ) | $ | (482.5 | ) | |
Other comprehensive (loss) income before | (27.8 | ) | (60.1 | ) | 0.6 | (87.3 | ) | ||||||
reclassifications, before income tax | |||||||||||||
Amounts reclassified from accumulated other | — | 225.5 | (0.6 | ) | 224.9 | ||||||||
comprehensive income, before income tax | |||||||||||||
Income tax (benefit) | — | (60.3 | ) | — | (60.3 | ) | |||||||
Net current period other comprehensive (loss) income, net of income taxes | (27.8 | ) | 105.1 | — | 77.3 | ||||||||
Net current period comprehensive (loss) income, net of income taxes and non-controlling interest | (27.8 | ) | 105.1 | — | 77.3 | ||||||||
Balance at March 31, 2015 | $ | (28.5 | ) | $ | (375.9 | ) | $ | (0.8 | ) | $ | (405.2 | ) | |
Foreign currency | Pension and postretirement | Change in fair value of | Total | ||||||||||
translation adjustments | liability adjustments | derivative financial instruments | |||||||||||
Balance at December 31, 2013 | $ | 37.5 | $ | (663.2 | ) | $ | (0.4 | ) | $ | (626.1 | ) | ||
Other comprehensive (loss) income before | (0.6 | ) | (0.3 | ) | (0.2 | ) | (1.1 | ) | |||||
reclassifications, before income tax | |||||||||||||
Amounts reclassified from accumulated other | — | 20.3 | 0.2 | 20.5 | |||||||||
comprehensive income, before income tax | |||||||||||||
Income tax (benefit) | — | (6.8 | ) | — | (6.8 | ) | |||||||
Net current period other comprehensive (loss) income, | (0.6 | ) | 13.2 | — | 12.6 | ||||||||
net of income taxes | |||||||||||||
Non-controlling interest | (0.5 | ) | — | — | (0.5 | ) | |||||||
Distribution of TimkenSteel | — | — | — | ||||||||||
Net current period comprehensive (loss) income, net of | (1.1 | ) | 13.2 | — | 12.1 | ||||||||
income taxes and non-controlling interest | |||||||||||||
Balance at March 31, 2014 | $ | 36.4 | $ | (650.0 | ) | $ | (0.4 | ) | $ | (614.0 | ) | ||
Other comprehensive (loss) income before reclassifications and income taxes includes the effect of foreign currency. The reclassification of the pension and postretirement liability adjustment included pension settlement charges of $213.6 million and was included in pension settlement charges in the Consolidated Statements of Income. The remaining reclassification of the pension and postretirement liability adjustment was included in costs of products sold and selling, general and administrative expenses in the Consolidated Statements of Income. The reclassification of the remaining components of accumulated other comprehensive (loss) income were included in other income (expense), net in the Consolidated Statements of Income. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Earnings Per Share [Abstract] | |||||||
Earnings Per Share | Note 10 - 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 three months ended March 31, 2015 and 2014: | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Numerator: | |||||||
Net (loss) income from continuing operations attributable to The Timken Company | $ | (135.2 | ) | $ | 60 | ||
Less: undistributed earnings allocated to nonvested stock | — | 0.1 | |||||
Net (loss) income from continuing operations available to common shareholders for basic earnings per share and diluted earnings per share | $ | (135.2 | ) | $ | 59.9 | ||
Denominator: | |||||||
Weighted average number of shares outstanding, basic | 87,670,640 | 92,172,595 | |||||
Effect of dilutive securities: | |||||||
Stock options and awards based on the treasury | — | 807,549 | |||||
stock method | |||||||
Weighted average number of shares outstanding, | 87,670,640 | 92,980,144 | |||||
assuming dilution of stock options and awards | |||||||
Basic (loss) earnings per share from continuing operations | $ | (1.54 | ) | $ | 0.64 | ||
Diluted (loss) earnings per share from continuing operations | $ | (1.54 | ) | $ | 0.64 | ||
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. During the three months ended March 31, 2015, all stock options were antidilutive as the Company experienced a loss from continuing operations. There were 904,555 antidilutive stock options outstanding during the three months ended March 31, 2014. |
Segment_Information
Segment Information | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Segment Information | Note 11 - Segment Information | ||||||
The primary measurement used by management to measure the financial performance of each segment is EBIT (earnings before interest and taxes). | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Net sales to external customers: | |||||||
Mobile Industries | $ | 393 | $ | 421.7 | |||
Process Industries | 329.5 | 315.1 | |||||
$ | 722.5 | $ | 736.8 | ||||
Segment EBIT: | |||||||
Mobile Industries | $ | 35.4 | $ | 64.3 | |||
Process Industries | 45.2 | 48.2 | |||||
Total EBIT, for reportable segments | $ | 80.6 | $ | 112.5 | |||
Unallocated corporate expenses | (14.2 | ) | (19.7 | ) | |||
Unallocated pension settlement charges | (215.2 | ) | — | ||||
Interest expense | (8.0 | ) | (5.5 | ) | |||
Interest income | 0.7 | 1 | |||||
(Loss) income from continuing operations before income taxes | $ | (156.1 | ) | $ | 88.3 | ||
Impairment_and_Restructuring_C
Impairment and Restructuring Charges | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||
Impairment and Restructuring Charges | Note 12 - Impairment and Restructuring Charges | |||||||||
Impairment and restructuring charges by segment are comprised of the following: | ||||||||||
For the three months ended March 31, 2015: | ||||||||||
Mobile Industries | Process Industries | Total | ||||||||
Impairment charges | $ | 0.1 | $ | 2.6 | $ | 2.7 | ||||
Severance and related benefit costs | 0.4 | — | 0.4 | |||||||
Exit costs | 0.1 | 3 | 3.1 | |||||||
Total | $ | 0.6 | $ | 5.6 | $ | 6.2 | ||||
For the three months ended March 31, 2014: | ||||||||||
Mobile Industries | Process Industries | Total | ||||||||
Severance and related benefit costs | $ | 1.8 | $ | 0.5 | $ | 2.3 | ||||
Exit costs | 0.3 | 0.6 | 0.9 | |||||||
Total | $ | 2.1 | $ | 1.1 | $ | 3.2 | ||||
The following discussion explains the 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 | ||||||||||
The Company incurred $0.4 million and $1.0 million of severance and related benefit costs related to the rationalization of one of its facilities in Europe during the first three months of 2015 and the first three months of 2014, respectively. | ||||||||||
Process Industries | ||||||||||
During the first three months of 2015, the Company recorded $3.0 million of exit costs related to the Company's termination of its relationship with one of its third-party sales representatives in Columbia. | ||||||||||
In addition, the Company recorded impairment charges of $2.5 million related to one of the Company's repair businesses in the United States. See Note 16 - Fair Value for additional information on the impairment charges for the repair business. | ||||||||||
Workforce Reductions: | ||||||||||
During 2013, the Company began the realignment of its organization to improve efficiency and reduce costs. During the first three months of 2014, the Company recognized $1.2 million of severance and related benefit costs to eliminate approximately 30 positions. Of the $1.2 million charge for the first three months of 2014, $0.7 million related to the Mobile Industries segment and $0.5 million related to the Process Industries segment. | ||||||||||
The following is a rollforward of the consolidated restructuring accrual for the three months ended March 31, 2015 and the twelve months ended December 31, 2014: | ||||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Beginning balance, January 1 | $ | 9.5 | $ | 10.8 | ||||||
Expense | 3.5 | 14.5 | ||||||||
Payments | (1.8 | ) | (15.8 | ) | ||||||
Ending balance | $ | 11.2 | $ | 9.5 | ||||||
The restructuring accrual at March 31, 2015 and December 31, 2014 was included in other current liabilities on the Consolidated Balance Sheets. | ||||||||||
Note - Separation Costs | ||||||||||
Separation costs for the three months and three months ended March 31, 2015 were as follows: | ||||||||||
Three Months Ended | Three Months Ended March 31, | |||||||||
March 31, | ||||||||||
2015 | 2015 | |||||||||
Severance expense and related benefit costs | $ | 2.3 | $ | 2.3 | ||||||
Professional fees | 9.2 | 9.2 | ||||||||
Exit costs | — | — | ||||||||
Total | $ | 11.5 | $ | 11.5 | ||||||
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 its bearings and power transmission business through a spinoff, creating a new independent publicly traded steel company, TimkenSteel Corporation. The transaction is expected to be tax-free to shareholders and is expected to be completed by June 30, 2014, subject to certain conditions including, among others, approval of the Company's board of directors, declaration of the effectiveness of the registration statement on Form 10 and receipt of an opinion of our tax counsel regarding the tax free nature of the spinoff. One-time transaction costs in connection with the separation of the two companies are expected to be approximately $95 million, consisting of $75 million of expense and $20 million of capital. 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 associated with operating two separate companies. The expected cost of this cost reduction initiative is expected to be approximately $15 million. | ||||||||||
In the first quarter of 2015, the Company recorded $2.3 million of severance and related benefit costs related to the cost reduction initiative. The Company also recorded $9.2 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 quarter ended March 31, 2015: | ||||||||||
2015 | ||||||||||
Beginning balance, January 1 | $ | 5.7 | ||||||||
Expense | 11.5 | |||||||||
Payments | (10.9 | ) | ||||||||
Ending balance, December 31 | $ | 6.3 | ||||||||
The separation accrual at March 31, 2015 was included in other current liabilities in the Consolidated Balance Sheets. At March 31, 2015, accrued separation costs included $3.2 million related to severance and related benefit costs and $3.1 million related to professional fees. The professional fees are recorded when incurred. |
Retirement_Benefit_Plans
Retirement Benefit Plans | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||
Retirement Benefit Plans | Note 13 - Retirement Benefit Plans | ||||||||||||||||||||
The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans. The amounts for the three months ended March 31, 2015 are based on calculations prepared by the Company's actuaries during the fourth quarter of 2014. The net periodic benefit cost recorded for the three months ended March 31, 2015 is the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2015. | |||||||||||||||||||||
US Plans | International Plans | Total | |||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||
Service cost | $ | 3.9 | $ | 7.3 | $ | 0.7 | $ | 0.6 | $ | 4.6 | $ | 7.9 | |||||||||
Interest cost | 13 | 32 | 3.1 | 5 | 16.1 | 37 | |||||||||||||||
Expected return on plan assets | (17.9 | ) | (47.2 | ) | (4.2 | ) | (6.4 | ) | (22.1 | ) | (53.6 | ) | |||||||||
Amortization of prior service cost | 0.8 | 1 | — | — | 0.8 | 1 | |||||||||||||||
Amortization of net actuarial loss | 9.6 | 17 | 1.3 | 1.5 | 10.9 | 18.5 | |||||||||||||||
Pension settlements | 213.6 | — | — | 0.7 | 213.6 | 0.7 | |||||||||||||||
Less: discontinued operations | — | (4.5 | ) | — | 0.1 | — | (4.4 | ) | |||||||||||||
Net periodic benefit cost | $ | 223 | $ | 5.6 | $ | 0.9 | $ | 1.5 | $ | 223.9 | $ | 7.1 | |||||||||
On January 23, 2015, the Company entered into an agreement pursuant to which the Timken-Latrobe-MPB-Torrington Retirement Plan (the Plan) purchased a group annuity contract from Prudential Insurance Company of America (Prudential) that requires Prudential to pay and administer future pension benefits for approximately 5,000 U.S. Timken retirees. The Company transferred approximately $575 million of the Company's pension obligations and approximately $635 million of pension assets to Prudential in this transaction. In addition to the purchase of the group annuity contract, the Company had lump sum distributions of approximately $11 million to new retirees. As a result of the purchase of the group annuity contract and the lump sum distributions, the Company incurred pension settlement charges of $215.2 million, including professional fees of $1.6 million, for the three months ended March 31, 2015. | |||||||||||||||||||||
The following table sets forth the net periodic benefit cost for the Company’s postretirement benefit plans. The amounts for the three months ended March 31, 2015 are based on calculations prepared by the Company's actuaries during the fourth quarter of 2014. The net periodic benefit cost recorded for the three months ended March 31, 2015 is the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2015. | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||
Service cost | $ | 0.1 | $ | 0.7 | |||||||||||||||||
Interest cost | 2.7 | 6.1 | |||||||||||||||||||
Expected return on plan assets | (1.8 | ) | (2.8 | ) | |||||||||||||||||
Amortization of prior service cost (credit) | 0.2 | 0.1 | |||||||||||||||||||
Less: discontinued operations | — | (1.7 | ) | ||||||||||||||||||
Net periodic benefit cost | $ | 1.2 | $ | 2.4 | |||||||||||||||||
Postretirement_Benefit_Plans
Postretirement Benefit Plans | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||
Postretirement Benefit Plans | Note 13 - Retirement Benefit Plans | ||||||||||||||||||||
The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans. The amounts for the three months ended March 31, 2015 are based on calculations prepared by the Company's actuaries during the fourth quarter of 2014. The net periodic benefit cost recorded for the three months ended March 31, 2015 is the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2015. | |||||||||||||||||||||
US Plans | International Plans | Total | |||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||
Service cost | $ | 3.9 | $ | 7.3 | $ | 0.7 | $ | 0.6 | $ | 4.6 | $ | 7.9 | |||||||||
Interest cost | 13 | 32 | 3.1 | 5 | 16.1 | 37 | |||||||||||||||
Expected return on plan assets | (17.9 | ) | (47.2 | ) | (4.2 | ) | (6.4 | ) | (22.1 | ) | (53.6 | ) | |||||||||
Amortization of prior service cost | 0.8 | 1 | — | — | 0.8 | 1 | |||||||||||||||
Amortization of net actuarial loss | 9.6 | 17 | 1.3 | 1.5 | 10.9 | 18.5 | |||||||||||||||
Pension settlements | 213.6 | — | — | 0.7 | 213.6 | 0.7 | |||||||||||||||
Less: discontinued operations | — | (4.5 | ) | — | 0.1 | — | (4.4 | ) | |||||||||||||
Net periodic benefit cost | $ | 223 | $ | 5.6 | $ | 0.9 | $ | 1.5 | $ | 223.9 | $ | 7.1 | |||||||||
On January 23, 2015, the Company entered into an agreement pursuant to which the Timken-Latrobe-MPB-Torrington Retirement Plan (the Plan) purchased a group annuity contract from Prudential Insurance Company of America (Prudential) that requires Prudential to pay and administer future pension benefits for approximately 5,000 U.S. Timken retirees. The Company transferred approximately $575 million of the Company's pension obligations and approximately $635 million of pension assets to Prudential in this transaction. In addition to the purchase of the group annuity contract, the Company had lump sum distributions of approximately $11 million to new retirees. As a result of the purchase of the group annuity contract and the lump sum distributions, the Company incurred pension settlement charges of $215.2 million, including professional fees of $1.6 million, for the three months ended March 31, 2015. | |||||||||||||||||||||
The following table sets forth the net periodic benefit cost for the Company’s postretirement benefit plans. The amounts for the three months ended March 31, 2015 are based on calculations prepared by the Company's actuaries during the fourth quarter of 2014. The net periodic benefit cost recorded for the three months ended March 31, 2015 is the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2015. | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||
Service cost | $ | 0.1 | $ | 0.7 | |||||||||||||||||
Interest cost | 2.7 | 6.1 | |||||||||||||||||||
Expected return on plan assets | (1.8 | ) | (2.8 | ) | |||||||||||||||||
Amortization of prior service cost (credit) | 0.2 | 0.1 | |||||||||||||||||||
Less: discontinued operations | — | (1.7 | ) | ||||||||||||||||||
Net periodic benefit cost | $ | 1.2 | $ | 2.4 | |||||||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Income Tax Disclosure [Abstract] | |||||||
Income Taxes | Note 15 - Income Taxes | ||||||
The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior year tax liabilities, are recorded during the period(s) in which they occur. | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
(Benefit) provision for income taxes | $ | (21.3 | ) | $ | 28 | ||
Effective tax rate | 13.6 | % | 31.7 | % | |||
The effective tax rate in the first quarter of 2015 (13.6%, or $21.3 million tax benefit on a loss of $156.1 million) decreased compared to the first quarter of 2014 (31.7%, or $28.0 million tax expense on income of $88.3 million). | |||||||
In accordance with ASC Topic 740, "Income Taxes", the effective tax rate in the first quarter of 2015 was computed based on an expected annual effective tax rate of 15.3%, excluding discrete items. The expected effective tax rate of 15.3% is lower than the U.S. federal statutory rate of 35% primarily due to earnings in certain foreign jurisdictions where the effective tax rate is less than 35%, tax benefits related to foreign tax credits, U.S. state and local taxes and the U.S. manufacturing deduction. These factors were partially offset by U.S. taxation of foreign earnings, losses at certain foreign subsidiaries where no tax benefit could be recorded and certain discrete tax expenses. The discrete tax expenses recorded in the quarter offset the tax benefits recorded against the pretax loss, which resulted in an effective tax rate for the first quarter of 2015 of 13.6%. | |||||||
The effective tax rate in the first quarter of 2014 was computed based on an expected annual effective tax rate of 31.6%, excluding discrete items. This effective tax rate was lower than the U.S. federal statutory rate of 35% primarily due to earnings in certain foreign jurisdictions where the effective tax rate is less than 35%, tax benefits related to foreign tax credits and the U.S. manufacturing deduction. These factors were partially offset by U.S. taxation of foreign earnings, U.S. state and local taxes and losses at certain foreign subsidiaries where no tax benefit could be recorded and certain discrete tax expenses. The discrete tax expenses recorded in the quarter increased the tax expense recorded against the pretax income, which resulted in an effective tax rate for the first quarter of 2014 of 31.7%. |
Fair_Value
Fair Value | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value | Note 16 - Fair Value | ||||||||||||
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 tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | |||||||||||||
31-Mar-15 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 154.4 | $ | 133.6 | $ | 20.8 | $ | — | |||||
Restricted cash | 14.8 | — | 14.8 | — | |||||||||
Short-term investments | 5.6 | — | 5.6 | — | |||||||||
Foreign currency hedges | 26.3 | — | 26.3 | — | |||||||||
Total Assets | $ | 201.1 | $ | 133.6 | $ | 67.5 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 1 | $ | — | $ | 1 | $ | — | |||||
Total Liabilities | $ | 1 | $ | — | $ | 1 | $ | — | |||||
Balance at December 31, 2014 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 278.8 | $ | 155.6 | $ | 123.2 | $ | — | |||||
Restricted cash | 15.3 | — | 15.3 | — | |||||||||
Short-term investments | 8.4 | — | 8.4 | — | |||||||||
Foreign currency hedges | 12.4 | — | 12.4 | — | |||||||||
Total Assets | $ | 314.9 | $ | 155.6 | $ | 159.3 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 0.3 | $ | — | $ | 0.3 | $ | — | |||||
Total Liabilities | $ | 0.3 | $ | — | $ | 0.3 | $ | — | |||||
Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are valued at the redemption value. Short-term investments are investments with maturities between four months and one year and are valued at the amortized cost. 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. | |||||||||||||
The following table presents those assets measured at fair value on a nonrecurring basis for the first three months ended March 31, 2015 using Level 3 inputs: | |||||||||||||
Carrying Value | Fair Value Adjustment | Fair Value | |||||||||||
Long - lived assets held for sale: | |||||||||||||
Repair business | $ | 5.2 | $ | (2.5 | ) | $ | 2.7 | ||||||
Total long-lived assets held for sale | $ | 5.2 | $ | (2.5 | ) | $ | 2.7 | ||||||
Long - lived assets held and used: | |||||||||||||
Fixed assets | $ | 0.7 | $ | (0.2 | ) | $ | 0.5 | ||||||
Total long-lived assets held and used | $ | 0.7 | $ | (0.2 | ) | $ | 0.5 | ||||||
Assets held for sale of $5.2 million associated with one of the Company's repair businesses in the United States were written down to their fair value of $2.7 million, resulting in an impairment charge of $2.5 million. The fair value of these assets was based on the price that the Company expects to receive from a sale of these assets. | |||||||||||||
Various items of property, plant and equipment, with a carrying value of $0.7 million, were written down to their fair value of $0.5 million, resulting in an impairment charge of $0.2 million. The fair value for these assets was based on the price that would be received in a current transaction to sell the assets on a standalone basis, considering the age and physical attributes of these items, as these assets had been idled. | |||||||||||||
Financial Instruments | |||||||||||||
The Company’s financial instruments consist primarily of cash and cash equivalents, restricted cash, 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, restricted cash, 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 $568.7 million and $558.6 million at March 31, 2015 and December 31, 2014, respectively. The carrying value of this debt was $519.6 million and $521.4 million at March 31, 2015 and December 31, 2014, respectively. The fair value of long-term fixed-debt was measured using Level 2 inputs. |
Derivatives_and_Hedging_Activi
Derivatives and Hedging Activities (Notes) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Derivative [Line Items] | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 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 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 March 31, 2015 and December 31, 2014, the Company had approximately $224.2 million and $194.1 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). | ||||||||||||||
Purpose for Derivative Instruments not Designated as Hedging Instruments: | ||||||||||||||
For derivative instruments that are not designated as hedging instruments, the instruments are typically forward contracts. In general, the practice is to reduce volatility by selectively hedging transaction exposures including intercompany loans, accounts payable and accounts receivable. Intercompany loans between entities with different functional currencies are typically hedged with a forward contract at the inception of loan with a maturity date at the maturity of the loan. The revaluation of these contracts, as well as the revaluation of the underlying balance sheet items, is recorded directly to the income statement so the adjustment generally offsets the revaluation of the underlying balance sheet items to protect cash payments and reduce income statement volatility. | ||||||||||||||
The following table presents the fair value and location of all assets and liabilities associated with the Company's hedging instruments within the Consolidated Balance Sheets. | ||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
Derivatives designated as hedging instruments | Balance Sheet Location | Fair Value at 3/31/15 | Fair Value at 12/31/14 | Fair Value at 3/31/15 | Fair Value at 12/31/14 | |||||||||
Foreign currency forward contracts | Other non-current assets/liabilities | $ | 0.6 | $ | 0.6 | $ | 0.1 | $ | — | |||||
Total derivatives designated as hedging instruments | 0.6 | 0.6 | 0.1 | — | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||
Foreign currency forward contracts | Other non-current assets/liabilities | 25.7 | 11.8 | 0.9 | 0.3 | |||||||||
Total Derivatives | $ | 26.3 | $ | 12.4 | $ | 1 | $ | 0.3 | ||||||
The following tables present the impact of derivative instruments and their location within the Consolidated Statements of Income: | ||||||||||||||
Amount of gain or (loss) recognized in Other Comprehensive Income (OCI) on derivative | Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Income (AOCI) into income (effective portion) | |||||||||||||
March 31, | March 31, | |||||||||||||
Derivatives in cash flow hedging relationships | 2015 | 2014 | 2015 | 2014 | ||||||||||
Foreign currency forward contracts | $ | 0.6 | $ | (0.2 | ) | $ | 0.7 | $ | (0.2 | ) | ||||
Interest rate swaps | — | — | (0.1 | ) | — | |||||||||
Total | $ | 0.6 | $ | 0.6 | $ | 0.6 | $ | (0.2 | ) | |||||
Amount of gain or (loss) recognized in income on derivative | ||||||||||||||
March 31, | ||||||||||||||
Derivatives not designated as hedging instruments | Location of gain or (loss) recognized in income on derivative | 2015 | 2014 | |||||||||||
Foreign currency forward contracts | Other (expense) income, net | $ | 13.4 | $ | 4.2 | |||||||||
Total | $ | 13.4 | $ | 4.2 | ||||||||||
Discontinued_Operations_Spinof
Discontinued Operations Spinoff Income Statement (Tables) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Discontinued Operations and Disposal Groups [Abstract] | ||||
Spinoff Income Statement Table [Table Text Block] | The following table presents the results of operations for TimkenSteel that have been reclassified to discontinued operations. | |||
Three Months Ended | ||||
March 31, | ||||
2014 | ||||
Net sales | $ | 367.7 | ||
Cost of goods sold | 294.8 | |||
Gross profit | 72.9 | |||
Selling, administrative and general expenses | 20.2 | |||
Separation Costs | 11.5 | |||
Other income, net | 1.6 | |||
Income before income taxes | 42.8 | |||
Income tax expense | (19.3 | ) | ||
Income from discontinued operations | $ | 23.5 | ||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventory Disclosure [Abstract] | |||||||
Components of inventories | The components of inventories were as follows: | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Manufacturing supplies | $ | 25.4 | $ | 25 | |||
Raw materials | 56.5 | 51.3 | |||||
Work in process | 214.9 | 219.3 | |||||
Finished products | 299.6 | 302.7 | |||||
Subtotal | 596.4 | 598.3 | |||||
Allowance for obsolete and surplus inventory | (16.1 | ) | (12.8 | ) | |||
Total Inventories, net | $ | 580.3 | $ | 585.5 | |||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Components of property, plant and equipment | The components of property, plant and equipment were as follows: | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Land and buildings | $ | 425.3 | $ | 428.8 | |||
Machinery and equipment | 1,712.70 | 1,735.30 | |||||
Subtotal | 2,138.00 | 2,164.10 | |||||
Accumulated depreciation | (1,377.8 | ) | (1,383.6 | ) | |||
Property, Plant and Equipment, net | $ | 760.2 | $ | 780.5 | |||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||
Change in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the three months ended March 31, 2015 were as follows: | ||||||||||||||||||
Mobile | Process | Total | |||||||||||||||||
Industries | Industries | ||||||||||||||||||
Beginning balance | $ | 89.6 | $ | 169.9 | $ | 259.5 | |||||||||||||
Other | (0.7 | ) | (2.2 | ) | (2.9 | ) | |||||||||||||
Ending balance | $ | 88.9 | $ | 167.7 | $ | 256.6 | |||||||||||||
Intangible assets | The following table displays intangible assets as of March 31, 2015 and December 31, 2014: | ||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | ||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | ||||||||||||||
Amount | Amount | Amount | Amount | ||||||||||||||||
Intangible assets | |||||||||||||||||||
subject to amortization: | |||||||||||||||||||
Customer relationships | $ | 160.7 | $ | 62.3 | $ | 98.4 | $ | 160.1 | $ | 59 | $ | 101.1 | |||||||
Know-how | 32.2 | 5.5 | 26.7 | 33.4 | 5.1 | 28.3 | |||||||||||||
Industrial license | 0.1 | 0.1 | — | 0.1 | 0.1 | — | |||||||||||||
agreements | |||||||||||||||||||
Land-use rights | 8.7 | 4.8 | 3.9 | 8.7 | 4.7 | 4 | |||||||||||||
Patents | 2.1 | 2 | 0.1 | 2.3 | 2 | 0.3 | |||||||||||||
Technology | 36.7 | 12.3 | 24.4 | 37 | 11.9 | 25.1 | |||||||||||||
Tradenames | 4.8 | 2.9 | 1.9 | 5.4 | 3 | 2.4 | |||||||||||||
PMA licenses | 5.3 | 4.5 | 0.8 | 5.3 | 4.5 | 0.8 | |||||||||||||
Non-compete | 3.3 | 3 | 0.3 | 3.5 | 3.2 | 0.3 | |||||||||||||
agreements | |||||||||||||||||||
Software | 234.7 | 185.6 | 49.1 | 235 | 182 | 53 | |||||||||||||
$ | 488.6 | $ | 283 | $ | 205.6 | $ | 490.8 | $ | 275.5 | $ | 215.3 | ||||||||
Intangible assets not subject to amortization: | |||||||||||||||||||
Tradenames | $ | 15.8 | $ | — | $ | 15.8 | $ | 15.8 | $ | — | $ | 15.8 | |||||||
FAA air agency | 8.7 | — | 8.7 | 8.7 | — | 8.7 | |||||||||||||
certificates | |||||||||||||||||||
$ | 24.5 | $ | — | $ | 24.5 | $ | 24.5 | $ | — | $ | 24.5 | ||||||||
Total intangible assets | $ | 513.1 | $ | 283 | $ | 230.1 | $ | 515.3 | $ | 275.5 | $ | 239.8 | |||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Short-term debt | Short-term debt at March 31, 2015 and December 31, 2014 was as follows: | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
Borrowings under variable-rate lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 5.13% to 5.89% at March 31, 2015 and interest rates ranging from 0.51% to 5.13% at December 31, 2014. | $ | 3.6 | $ | 7.4 | |||
Short-term debt | $ | 3.6 | $ | 7.4 | |||
Long-term debt | Long-term debt at March 31, 2015 and December 31, 2014 was as follows: | ||||||
March 31, | December 31, | ||||||
2015 | 2014 | ||||||
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 1, 2024, with an | 344.6 | 346.4 | |||||
interest rate of 3.875% | |||||||
Other | 0.2 | 1.3 | |||||
$ | 519.8 | $ | 522.7 | ||||
Less current maturities | 0.1 | 0.6 | |||||
Long-term debt | $ | 519.7 | $ | 522.1 | |||
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||
Equity | The changes in the equity components for the three months ended March 31, 2015 were as follows: | |||||||||||||||||||||
The Timken Company Shareholders | ||||||||||||||||||||||
Total | Stated | Other | Earnings | Accumulated | Treasury | Non- | ||||||||||||||||
Capital | Paid-In | Invested | Other | Stock | controlling | |||||||||||||||||
Capital | in the | Comprehensive | Interest | |||||||||||||||||||
Business | (Loss) | |||||||||||||||||||||
Balance at December 31, 2014 | $ | 1,589.10 | $ | 53.1 | $ | 899.4 | $ | 1,615.40 | $ | (482.5 | ) | $ | (509.2 | ) | $ | 12.9 | ||||||
Net income | (134.8 | ) | (135.2 | ) | 0.4 | |||||||||||||||||
Foreign currency translation adjustment | (27.8 | ) | (27.8 | ) | — | |||||||||||||||||
Pension and postretirement liability | 105.1 | 105.1 | ||||||||||||||||||||
adjustment (net of the income tax | ||||||||||||||||||||||
benefit of $60.3 million) | ||||||||||||||||||||||
Dissolution of joint venture | (0.1 | ) | (0.1 | ) | ||||||||||||||||||
Dividends – $0.25 per share | (21.9 | ) | (21.9 | ) | ||||||||||||||||||
Excess tax benefit from stock compensation | 1 | 1 | ||||||||||||||||||||
Stock-based compensation expense | 4.1 | 4.1 | ||||||||||||||||||||
Stock purchased at fair market value | (96.8 | ) | (96.8 | ) | ||||||||||||||||||
Stock option exercise activity | 1.1 | (3.8 | ) | 4.9 | ||||||||||||||||||
Restricted shares (issued) surrendered | — | (5.1 | ) | 5.1 | ||||||||||||||||||
Shares surrendered for taxes | (2.8 | ) | (2.8 | ) | ||||||||||||||||||
Balance at March 31, 2015 | $ | 1,416.20 | $ | 53.1 | $ | 895.6 | $ | 1,458.30 | $ | (405.2 | ) | $ | (598.8 | ) | $ | 13.2 | ||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Accumulated Comprehensive Income Components reclassification | The following table presents details about components of accumulated other comprehensive income (loss) for the three months ended March 31, 2015 and the three months ended March 31, 2014, respectively: | ||||||||||||
Foreign currency translation adjustments | Pension and postretirement liability adjustments | Change in fair value of derivative financial instruments | Total | ||||||||||
Balance at December 31, 2014 | $ | (0.7 | ) | $ | (481.0 | ) | $ | (0.8 | ) | $ | (482.5 | ) | |
Other comprehensive (loss) income before | (27.8 | ) | (60.1 | ) | 0.6 | (87.3 | ) | ||||||
reclassifications, before income tax | |||||||||||||
Amounts reclassified from accumulated other | — | 225.5 | (0.6 | ) | 224.9 | ||||||||
comprehensive income, before income tax | |||||||||||||
Income tax (benefit) | — | (60.3 | ) | — | (60.3 | ) | |||||||
Net current period other comprehensive (loss) income, net of income taxes | (27.8 | ) | 105.1 | — | 77.3 | ||||||||
Net current period comprehensive (loss) income, net of income taxes and non-controlling interest | (27.8 | ) | 105.1 | — | 77.3 | ||||||||
Balance at March 31, 2015 | $ | (28.5 | ) | $ | (375.9 | ) | $ | (0.8 | ) | $ | (405.2 | ) | |
Foreign currency | Pension and postretirement | Change in fair value of | Total | ||||||||||
translation adjustments | liability adjustments | derivative financial instruments | |||||||||||
Balance at December 31, 2013 | $ | 37.5 | $ | (663.2 | ) | $ | (0.4 | ) | $ | (626.1 | ) | ||
Other comprehensive (loss) income before | (0.6 | ) | (0.3 | ) | (0.2 | ) | (1.1 | ) | |||||
reclassifications, before income tax | |||||||||||||
Amounts reclassified from accumulated other | — | 20.3 | 0.2 | 20.5 | |||||||||
comprehensive income, before income tax | |||||||||||||
Income tax (benefit) | — | (6.8 | ) | — | (6.8 | ) | |||||||
Net current period other comprehensive (loss) income, | (0.6 | ) | 13.2 | — | 12.6 | ||||||||
net of income taxes | |||||||||||||
Non-controlling interest | (0.5 | ) | — | — | (0.5 | ) | |||||||
Distribution of TimkenSteel | — | — | — | ||||||||||
Net current period comprehensive (loss) income, net of | (1.1 | ) | 13.2 | — | 12.1 | ||||||||
income taxes and non-controlling interest | |||||||||||||
Balance at March 31, 2014 | $ | 36.4 | $ | (650.0 | ) | $ | (0.4 | ) | $ | (614.0 | ) | ||
Other comprehensive (loss) income before reclassifications and income taxes includes the effect of foreign currency. The reclassification of the pension and postretirement liability adjustment included pension settlement charges of $213.6 million and was included in pension settlement charges in the Consolidated Statements of Income. The remaining reclassification of the pension and postretirement liability adjustment was included in costs of products sold and selling, general and administrative expenses in the Consolidated Statements of Income. The reclassification of the remaining components of accumulated other comprehensive (loss) income were included in other income (expense), net in the Consolidated Statements of Income. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 three months ended March 31, 2015 and 2014: | ||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Numerator: | |||||||
Net (loss) income from continuing operations attributable to The Timken Company | $ | (135.2 | ) | $ | 60 | ||
Less: undistributed earnings allocated to nonvested stock | — | 0.1 | |||||
Net (loss) income from continuing operations available to common shareholders for basic earnings per share and diluted earnings per share | $ | (135.2 | ) | $ | 59.9 | ||
Denominator: | |||||||
Weighted average number of shares outstanding, basic | 87,670,640 | 92,172,595 | |||||
Effect of dilutive securities: | |||||||
Stock options and awards based on the treasury | — | 807,549 | |||||
stock method | |||||||
Weighted average number of shares outstanding, | 87,670,640 | 92,980,144 | |||||
assuming dilution of stock options and awards | |||||||
Basic (loss) earnings per share from continuing operations | $ | (1.54 | ) | $ | 0.64 | ||
Diluted (loss) earnings per share from continuing operations | $ | (1.54 | ) | $ | 0.64 | ||
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Segment wise financial performance | The primary measurement used by management to measure the financial performance of each segment is EBIT (earnings before interest and taxes). | ||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Net sales to external customers: | |||||||
Mobile Industries | $ | 393 | $ | 421.7 | |||
Process Industries | 329.5 | 315.1 | |||||
$ | 722.5 | $ | 736.8 | ||||
Segment EBIT: | |||||||
Mobile Industries | $ | 35.4 | $ | 64.3 | |||
Process Industries | 45.2 | 48.2 | |||||
Total EBIT, for reportable segments | $ | 80.6 | $ | 112.5 | |||
Unallocated corporate expenses | (14.2 | ) | (19.7 | ) | |||
Unallocated pension settlement charges | (215.2 | ) | — | ||||
Interest expense | (8.0 | ) | (5.5 | ) | |||
Interest income | 0.7 | 1 | |||||
(Loss) income from continuing operations before income taxes | $ | (156.1 | ) | $ | 88.3 | ||
Impairment_and_Restructuring_C1
Impairment and Restructuring Charges (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2015 | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Schedule of Restructuring and Related Costs | Impairment and restructuring charges by segment are comprised of the following: | |||||||||
For the three months ended March 31, 2015: | ||||||||||
Mobile Industries | Process Industries | Total | ||||||||
Impairment charges | $ | 0.1 | $ | 2.6 | $ | 2.7 | ||||
Severance and related benefit costs | 0.4 | — | 0.4 | |||||||
Exit costs | 0.1 | 3 | 3.1 | |||||||
Total | $ | 0.6 | $ | 5.6 | $ | 6.2 | ||||
For the three months ended March 31, 2014: | ||||||||||
Mobile Industries | Process Industries | Total | ||||||||
Severance and related benefit costs | $ | 1.8 | $ | 0.5 | $ | 2.3 | ||||
Exit costs | 0.3 | 0.6 | 0.9 | |||||||
Total | $ | 2.1 | $ | 1.1 | $ | 3.2 | ||||
Roll Forward consolidated restructuring accrual | The following is a rollforward of the consolidated restructuring accrual for the three months ended March 31, 2015 and the twelve months ended December 31, 2014: | |||||||||
March 31, | December 31, | |||||||||
2015 | 2014 | |||||||||
Beginning balance, January 1 | $ | 9.5 | $ | 10.8 | ||||||
Expense | 3.5 | 14.5 | ||||||||
Payments | (1.8 | ) | (15.8 | ) | ||||||
Ending balance | $ | 11.2 | $ | 9.5 | ||||||
Retirement_Benefit_Plans_Table
Retirement Benefit Plans (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||
Net periodic benefit cost for the Company's retirement benefit plans | The following table sets forth the net periodic benefit cost for the Company’s defined benefit pension plans. The amounts for the three months ended March 31, 2015 are based on calculations prepared by the Company's actuaries during the fourth quarter of 2014. The net periodic benefit cost recorded for the three months ended March 31, 2015 is the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2015. | ||||||||||||||||||||
US Plans | International Plans | Total | |||||||||||||||||||
Three Months Ended | Three Months Ended | Three Months Ended | |||||||||||||||||||
March 31, | March 31, | March 31, | |||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
Components of net periodic benefit cost: | |||||||||||||||||||||
Service cost | $ | 3.9 | $ | 7.3 | $ | 0.7 | $ | 0.6 | $ | 4.6 | $ | 7.9 | |||||||||
Interest cost | 13 | 32 | 3.1 | 5 | 16.1 | 37 | |||||||||||||||
Expected return on plan assets | (17.9 | ) | (47.2 | ) | (4.2 | ) | (6.4 | ) | (22.1 | ) | (53.6 | ) | |||||||||
Amortization of prior service cost | 0.8 | 1 | — | — | 0.8 | 1 | |||||||||||||||
Amortization of net actuarial loss | 9.6 | 17 | 1.3 | 1.5 | 10.9 | 18.5 | |||||||||||||||
Pension settlements | 213.6 | — | — | 0.7 | 213.6 | 0.7 | |||||||||||||||
Less: discontinued operations | — | (4.5 | ) | — | 0.1 | — | (4.4 | ) | |||||||||||||
Net periodic benefit cost | $ | 223 | $ | 5.6 | $ | 0.9 | $ | 1.5 | $ | 223.9 | $ | 7.1 | |||||||||
Postretirement_Benefit_Plans_T
Postretirement Benefit Plans (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Post Retirement Benefit Plans | |||||||
Defined Contribution Plan Disclosures [Table Text Block] | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Components of net periodic benefit cost: | |||||||
Service cost | $ | 0.1 | $ | 0.7 | |||
Interest cost | 2.7 | 6.1 | |||||
Expected return on plan assets | (1.8 | ) | (2.8 | ) | |||
Amortization of prior service cost (credit) | 0.2 | 0.1 | |||||
Less: discontinued operations | — | (1.7 | ) | ||||
Net periodic benefit cost | $ | 1.2 | $ | 2.4 | |||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Income Tax Disclosure [Abstract] | |||||||
Income taxes | The Company's provision for income taxes in interim periods is computed by applying the estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior year tax liabilities, are recorded during the period(s) in which they occur. | ||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
(Benefit) provision for income taxes | $ | (21.3 | ) | $ | 28 | ||
Effective tax rate | 13.6 | % | 31.7 | % | |||
Fair_Value_Tables
Fair Value (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | The following table presents those assets measured at fair value on a nonrecurring basis for the first three months ended March 31, 2015 using Level 3 inputs: | ||||||||||||
Carrying Value | Fair Value Adjustment | Fair Value | |||||||||||
Long - lived assets held for sale: | |||||||||||||
Repair business | $ | 5.2 | $ | (2.5 | ) | $ | 2.7 | ||||||
Total long-lived assets held for sale | $ | 5.2 | $ | (2.5 | ) | $ | 2.7 | ||||||
Long - lived assets held and used: | |||||||||||||
Fixed assets | $ | 0.7 | $ | (0.2 | ) | $ | 0.5 | ||||||
Total long-lived assets held and used | $ | 0.7 | $ | (0.2 | ) | $ | 0.5 | ||||||
Assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014: | ||||||||||||
31-Mar-15 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 154.4 | $ | 133.6 | $ | 20.8 | $ | — | |||||
Restricted cash | 14.8 | — | 14.8 | — | |||||||||
Short-term investments | 5.6 | — | 5.6 | — | |||||||||
Foreign currency hedges | 26.3 | — | 26.3 | — | |||||||||
Total Assets | $ | 201.1 | $ | 133.6 | $ | 67.5 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 1 | $ | — | $ | 1 | $ | — | |||||
Total Liabilities | $ | 1 | $ | — | $ | 1 | $ | — | |||||
Balance at December 31, 2014 | |||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 278.8 | $ | 155.6 | $ | 123.2 | $ | — | |||||
Restricted cash | 15.3 | — | 15.3 | — | |||||||||
Short-term investments | 8.4 | — | 8.4 | — | |||||||||
Foreign currency hedges | 12.4 | — | 12.4 | — | |||||||||
Total Assets | $ | 314.9 | $ | 155.6 | $ | 159.3 | $ | — | |||||
Liabilities: | |||||||||||||
Foreign currency hedges | $ | 0.3 | $ | — | $ | 0.3 | $ | — | |||||
Total Liabilities | $ | 0.3 | $ | — | $ | 0.3 | $ | — | |||||
Derivatives_and_Hedging_Activi1
Derivatives and Hedging Activities (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Fair Value and Location of Hedging Assets and Liabilities [Abstract] | ||||||||||||||
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the fair value and location of all assets and liabilities associated with the Company's hedging instruments within the Consolidated Balance Sheets. | |||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
Derivatives designated as hedging instruments | Balance Sheet Location | Fair Value at 3/31/15 | Fair Value at 12/31/14 | Fair Value at 3/31/15 | Fair Value at 12/31/14 | |||||||||
Foreign currency forward contracts | Other non-current assets/liabilities | $ | 0.6 | $ | 0.6 | $ | 0.1 | $ | — | |||||
Total derivatives designated as hedging instruments | 0.6 | 0.6 | 0.1 | — | ||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||
Foreign currency forward contracts | Other non-current assets/liabilities | 25.7 | 11.8 | 0.9 | 0.3 | |||||||||
Total Derivatives | $ | 26.3 | $ | 12.4 | $ | 1 | $ | 0.3 | ||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following tables present the impact of derivative instruments and their location within the Consolidated Statements of Income: | |||||||||||||
Amount of gain or (loss) recognized in Other Comprehensive Income (OCI) on derivative | Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Income (AOCI) into income (effective portion) | |||||||||||||
March 31, | March 31, | |||||||||||||
Derivatives in cash flow hedging relationships | 2015 | 2014 | 2015 | 2014 | ||||||||||
Foreign currency forward contracts | $ | 0.6 | $ | (0.2 | ) | $ | 0.7 | $ | (0.2 | ) | ||||
Interest rate swaps | — | — | (0.1 | ) | — | |||||||||
Total | $ | 0.6 | $ | 0.6 | $ | 0.6 | $ | (0.2 | ) | |||||
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | ||||||||||||||
Amount of gain or (loss) recognized in income on derivative | ||||||||||||||
March 31, | ||||||||||||||
Derivatives not designated as hedging instruments | Location of gain or (loss) recognized in income on derivative | 2015 | 2014 | |||||||||||
Foreign currency forward contracts | Other (expense) income, net | $ | 13.4 | $ | 4.2 | |||||||||
Total | $ | 13.4 | $ | 4.2 | ||||||||||
Discontinued_Operations_Text_D
Discontinued Operations Text (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Text [Abstract] | |
Transaction Cost | $11.50 |
Discontinued_Operations_Tables
Discontinued Operations Tables 1 (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | $722.50 | $736.80 |
Cost of Goods Sold | 520 | 518.7 |
Gross Profit | 202.5 | 218.1 |
Selling, General and Administrative Expense | 128.5 | 141.8 |
Transaction Cost | 11.5 | |
Interest expense | -8 | -5.5 |
Other Nonoperating Income (Expense) | -1.4 | -2.2 |
Income From Continuing Operations Before Income Taxes | -156.1 | 88.3 |
Income Tax Expense (Benefit) | -21.3 | 28 |
Income from Discontinued Operations, Net of Tax, Attributable to Parent | 0 | 23.5 |
TimkenSteel [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net sales | 367.7 | |
Cost of Goods Sold | 294.8 | |
Gross Profit | 72.9 | |
Selling, General and Administrative Expense | 20.2 | |
Transaction Cost | 11.5 | |
Other Nonoperating Income (Expense) | 1.6 | |
Income From Continuing Operations Before Income Taxes | 42.8 | |
Income Tax Expense (Benefit) | -19.3 | |
Income from Discontinued Operations, Net of Tax, Attributable to Parent | $23.50 |
Discontinued_Operations_Tables1
Discontinued Operations Tables 2 (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Cash and Cash Equivalents | $154.40 | $278.80 | $248.30 | $384.60 |
Accounts Receivable, Net, Current | 491.5 | 475.7 | ||
Inventory, Net | 580.3 | 585.5 | ||
Deferred Tax Assets, Net of Valuation Allowance, Current | 49.1 | 49.9 | ||
Deferred charges and prepaid expenses | 27 | 25.2 | ||
Other Assets, Current | 46.7 | 51.5 | ||
Property, Plant and Equipment, Net | 760.2 | 780.5 | ||
Goodwill | 256.6 | 259.5 | ||
Non-current pension assets | 109.6 | 176.2 | ||
Intangible Assets, Net (Excluding Goodwill) | 230.1 | 239.8 | ||
Other Assets, Noncurrent | 64.2 | 52.3 | ||
Total Assets | 2,820.40 | 3,001.40 | ||
Accounts Payable, Current | 168.4 | 143.9 | ||
Employee-related Liabilities, Current | 107 | 146.7 | ||
Accrued Income Taxes, Current | 108.3 | 80.2 | ||
Other Liabilities, Current | 132 | 155 | ||
Long-term Debt, Excluding Current Maturities | 519.7 | 522.1 | ||
Defined Benefit Pension Plan, Liabilities, Noncurrent | 158.1 | 165.9 | ||
Other Postretirement Defined Benefit Plan, Liabilities, Noncurrent | 137.8 | 141.8 | ||
Other Liabilities, Noncurrent | $69.20 | $48.70 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventories, net: | ||
Manufacturing supplies | $25.40 | $25 |
Raw materials | 56.5 | 51.3 |
Work in process | 214.9 | 219.3 |
Finished products | 299.6 | 302.7 |
Subtotal | 596.4 | 598.3 |
Allowance for obsolete and surplus inventory | -16.1 | -12.8 |
Total Inventories, net | $580.30 | $585.50 |
Inventories_Details_Textual
Inventories (Details Textual) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Percentage of LIFO Inventory | 50.00% | ||
Percentage of FIFO Inventory | 50.00% | ||
Inventory Reserve (LIFO) | $201.60 | $199.70 | |
Inventory, LIFO Reserve, Period Charge | $1.90 | $1.30 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment: | ||
Land and buildings | $425.30 | $428.80 |
Machinery and equipment | 1,712.70 | 1,735.30 |
Subtotal | 2,138 | 2,164.10 |
Accumulated depreciation | -1,377.80 | -1,383.60 |
Property, Plant and Equipment, net | $760.20 | $780.50 |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Details Textual) (USD $) | 3 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Nov. 30, 2013 | Dec. 31, 2014 |
Property Plant and Equipment (Textual) [Abstract] | ||||
Depreciation expense | $24 | $30.70 | ||
Capitalized Computer Software, Net | 45 | |||
Interest Costs Capitalized | 0 | 0.8 | ||
Gains (Losses) on Sales of Other Real Estate | 0 | 22.6 | ||
Computer software [Member] | ||||
Property Plant and Equipment (Textual) [Abstract] | ||||
Depreciation expense | 3.8 | |||
Sao Paulo [Member] | ||||
Property Plant and Equipment (Textual) [Abstract] | ||||
Proceeds from Sale of Land Held-for-use | 23.6 | 31 | ||
Costs of Real Estate Services and Land Sales | 3 | |||
Gains (Losses) on Sales of Other Real Estate | 22.6 | |||
After Tax Gain on Sale of Real Estate | $19.50 | |||
Full Accrual Minimum Percentage | 25.00% |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | $259.50 |
Goodwill, Other | -2.9 |
Goodwill, Ending Balance | 256.6 |
Mobile Industries [Member] | |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 89.6 |
Goodwill, Other | -0.7 |
Goodwill, Ending Balance | 88.9 |
Process Industries [Member] | |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 169.9 |
Goodwill, Other | -2.2 |
Goodwill, Ending Balance | $167.70 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | $488.60 | $490.80 |
Intangible assets, Accumulated Amortization | 283 | 275.5 |
Intangible assets, Net Carrying Amount | 205.6 | 215.3 |
Intangible assets not subject to amortization: | ||
Indefinite Lived Intangible Assets Net | 24.5 | 24.5 |
Total intangible assets, Gross Carrying Amount | 513.1 | 515.3 |
Total intangible assets, Net Carrying Amount | 230.1 | 239.8 |
Customer relationships [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 160.7 | 160.1 |
Intangible assets, Accumulated Amortization | 62.3 | 59 |
Intangible assets, Net Carrying Amount | 98.4 | 101.1 |
Know-how [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 32.2 | 33.4 |
Intangible assets, Accumulated Amortization | 5.5 | 5.1 |
Intangible assets, Net Carrying Amount | 26.7 | 28.3 |
Industrial license agreements [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 0.1 | 0.1 |
Intangible assets, Accumulated Amortization | 0.1 | 0.1 |
Intangible assets, Net Carrying Amount | 0 | 0 |
Land-use rights [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 8.7 | 8.7 |
Intangible assets, Accumulated Amortization | 4.8 | 4.7 |
Intangible assets, Net Carrying Amount | 3.9 | 4 |
Patents [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 2.1 | 2.3 |
Intangible assets, Accumulated Amortization | 2 | 2 |
Intangible assets, Net Carrying Amount | 0.1 | 0.3 |
Technology use [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 36.7 | 37 |
Intangible assets, Accumulated Amortization | 12.3 | 11.9 |
Intangible assets, Net Carrying Amount | 24.4 | 25.1 |
Trademarks [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 4.8 | 5.4 |
Intangible assets, Accumulated Amortization | 2.9 | 3 |
Intangible assets, Net Carrying Amount | 1.9 | 2.4 |
PMA licenses [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 5.3 | 5.3 |
Intangible assets, Accumulated Amortization | 4.5 | 4.5 |
Intangible assets, Net Carrying Amount | 0.8 | 0.8 |
Non-compete agreements [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 3.3 | 3.5 |
Intangible assets, Accumulated Amortization | 3 | 3.2 |
Intangible assets, Net Carrying Amount | 0.3 | 0.3 |
Computer Software, Intangible Asset [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 235 | |
Intangible assets, Accumulated Amortization | 182 | |
Intangible assets, Net Carrying Amount | 53 | |
Tradename [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Accumulated Amortization | 0 | 0 |
Intangible assets, Net Carrying Amount | 15.8 | 15.8 |
Intangible assets not subject to amortization: | ||
Trade name | 15.8 | 15.8 |
Air Transportation Equipment [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Accumulated Amortization | 0 | 0 |
Intangible assets not subject to amortization: | ||
FAA air agency certificates | $8.70 | $8.70 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||
Amortization expense for intangible assets | $9.50 | $4.40 |
Future Amortization Expense Year 2015 | 33.2 | |
Future Amortization Expense Year 2016 | 28.8 | |
Future Amortization Expense Year 2017 | 25 | |
Future Amortization Expense Year 2018 | 18.9 | |
Future Amortization Expense Year 2019 | $16.80 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Short-term debt | ||
Short-term debt | $3.60 | $7.40 |
Line of Credit [Member] | Foreign Subsidiary [Member] | ||
Short-term debt | ||
Short-term debt | $3.60 | $7.40 |
Financing_Arrangements_Details1
Financing Arrangements (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Long-term debt | ||
Total Long-term debt | $519.80 | $522.70 |
Less current maturities | 0.1 | 0.6 |
Long-term debt | 519.7 | 522.1 |
Senior Unsecured Notes - 3.875% [Member] | ||
Long-term debt | ||
Total Long-term debt | 344.6 | 346.4 |
Series A Medium Term Note [Member] | ||
Long-term debt | ||
Total Long-term debt | 175 | 175 |
Other Long Term Debt [Member] | ||
Long-term debt | ||
Total Long-term debt | $0.20 | $1.30 |
Financing_Arrangements_Details2
Financing Arrangements (Details Textual) (USD $) | 3 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Apr. 28, 2014 | |
Line of Credit Facility [Line Items] | |||||
Short-term Debt | 3,600,000 | $7,400,000 | |||
Long-term Fixed-rate Debt, Carrying Value | 519,600,000 | 521,400,000 | |||
Series A Medium Term Note [Member] | |||||
Financing Arrangements (Textual) [Abstract] | |||||
Fixed-rate Medium-Term Notes, Series A, Interest rate, Minimum | 6.74% | ||||
Fixed-rate Medium-Term Notes, Series A, Interest rate, Maximum | 7.76% | ||||
Debt Instruments, Maturity Date | 1-May-28 | ||||
Senior Unsecured Notes [Member] | |||||
Financing Arrangements (Textual) [Abstract] | |||||
Long-term Debt, Weighted Average Interest Rate | 6.00% | ||||
Senior Unsecured Notes - 3.875% [Member] | |||||
Financing Arrangements (Textual) [Abstract] | |||||
Total Long-term debt | 350,000,000 | ||||
Debt Instrument, Interest rate | 3.88% | ||||
Debt Instruments, Maturity Date | 1-Sep-24 | ||||
Long-term Debt, Weighted Average Interest Rate | 3.88% | ||||
Foreign Subsidiary [Member] | |||||
Financing Arrangements (Textual) [Abstract] | |||||
Borrowings guarantees | 5,500,000 | ||||
Line of Credit Accounts Receivable Securitization [Member] | |||||
Financing Arrangements (Textual) [Abstract] | |||||
Maximum borrowing capacity under line of credit | 100,000,000 | 200,000,000 | |||
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | 88,900,000 | ||||
Line of credit expiration date | 30-Nov-15 | ||||
Senior Credit Facility [Member] | |||||
Financing Arrangements (Textual) [Abstract] | |||||
Maximum borrowing capacity under line of credit | 500,000,000 | ||||
Line of credit expiration date | 11-May-16 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | ||||
Number of Financial Covenant under senior Credit Facility | 2 | ||||
Line of Credit [Member] | Foreign Subsidiary [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Short-term Debt | 3,600,000 | 7,400,000 | |||
Financing Arrangements (Textual) [Abstract] | |||||
Maximum borrowing capacity under line of credit | 220,300,000 | ||||
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | 211,200,000 | ||||
Variable Rate Lines of Credit [Member] | |||||
Financing Arrangements (Textual) [Abstract] | |||||
Line of credit stated variable interest rate, Low Range | 5.13% | 0.51% | |||
Line of Credit stated variable interest rate, High Range | 5.89% | 5.13% |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Common Stock, Value, Issued | $53.10 | $53.10 | ||
Noncontrolling Interest, Change in Redemption Value | -0.1 | |||
Treasury Stock, Value | 598.8 | 509.2 | ||
Stockholders' Equity Attributable to Noncontrolling Interest | 13.2 | 12.9 | ||
Shareholding pattern | ||||
Beginning Balance | 1,589.10 | |||
Net income | -134.8 | 83.8 | ||
Net income attributable to noncontrolling interest | 0.4 | 0.3 | ||
Other Comprehensive Income Foreign Currency Translation Adjustment, net of Tax, net of Spinoff | -27.8 | |||
Net (loss) Income attributable to The Timken Company | -135.2 | 83.5 | ||
Pension and postretirement liability adjustment (net of the income tax benefit of $60.3 million) | 105.1 | 13.2 | ||
Noncontrolling Interest, Change in Redemption Value | -0.1 | |||
Dividends - $0.25 per share | -21.9 | |||
Excess tax benefit from stock compensation | 1 | |||
Stock-based compensation expense | 4.1 | |||
Payments for Repurchase of Common Stock | -96.8 | -117.7 | ||
Stock option exercise activity | 1.1 | |||
Restricted shares surrendered (issued) | 0 | |||
Shares surrendered for taxes | -2.8 | |||
Ending Balance | 1,416.20 | |||
Additional Paid in Capital, Common Stock | 895.6 | 899.4 | ||
Retained Earnings (Accumulated Deficit) | 1,458.30 | 1,615.40 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -405.2 | -614 | -482.5 | -626.1 |
Stated Capital [Member] | ||||
Shareholding pattern | ||||
Ending Balance | 53.1 | |||
Other Paid-In Capital [Member] | ||||
Shareholding pattern | ||||
Excess tax benefit from stock compensation | 1 | |||
Stock-based compensation expense | 4.1 | |||
Stock option exercise activity | -3.8 | |||
Restricted shares surrendered (issued) | -5.1 | |||
Ending Balance | 895.6 | |||
Earnings Invested in the Business [Member] | ||||
Shareholding pattern | ||||
Dividends - $0.25 per share | -21.9 | |||
Ending Balance | 1,458.30 | |||
Accumulated Other Comprehensive (Loss) [Member] | ||||
Shareholding pattern | ||||
Other Comprehensive Income Foreign Currency Translation Adjustment, net of Tax, net of Spinoff | -27.8 | |||
Pension and postretirement liability adjustment (net of the income tax benefit of $60.3 million) | 105.1 | |||
Ending Balance | -405.2 | |||
Treasury Stock [Member] | ||||
Shareholding pattern | ||||
Payments for Repurchase of Common Stock | -96.8 | |||
Stock option exercise activity | 4.9 | |||
Restricted shares surrendered (issued) | 5.1 | |||
Shares surrendered for taxes | -2.8 | |||
Ending Balance | -598.8 | |||
Noncontrolling Interest [Member] | ||||
Noncontrolling Interest, Change in Redemption Value | -0.1 | |||
Shareholding pattern | ||||
Other Comprehensive Income Foreign Currency Translation Adjustment, net of Tax, net of Spinoff | 0 | |||
Noncontrolling Interest, Change in Redemption Value | -0.1 | |||
Ending Balance | $13.20 |
Equity_Details_Textual
Equity (Details Textual) (USD $) | 3 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Equity (Textual) [Abstract] | |
Pension and postretirement liability adjustment, Tax | $60.30 |
Dividend per share | $0.25 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | ($213.60) | ($0.70) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | -87.3 | -1.1 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 224.9 | 20.5 |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | -482.5 | -626.1 |
Income tax (benefit) expense | -60.3 | -6.8 |
Net current period other comprehensive (loss) income, net of income taxes | 77.3 | 12.6 |
Other Comprehensive Income (loss), net of tax, prior to distribution of spinoff | 77.3 | 12.6 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | -0.5 | |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 0 | |
Net current period comprehensive (loss) income, net of income taxes and non-controlling interest | 77.3 | 12.1 |
Ending Balance | -405.2 | -614 |
Foreign currency translation adjustment [Member] | ||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | -27.8 | -0.6 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | -0.7 | 37.5 |
Income tax (benefit) expense | 0 | 0 |
Net current period other comprehensive (loss) income, net of income taxes | -27.8 | -0.6 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | -0.5 | |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 0 | |
Net current period comprehensive (loss) income, net of income taxes and non-controlling interest | -27.8 | -1.1 |
Ending Balance | -28.5 | 36.4 |
Pension and postretirement liability adjustment [Member] | ||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | -60.1 | -0.3 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 225.5 | 20.3 |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | -481 | -663.2 |
Income tax (benefit) expense | -60.3 | -6.8 |
Net current period other comprehensive (loss) income, net of income taxes | 105.1 | 13.2 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 0 | |
Net current period comprehensive (loss) income, net of income taxes and non-controlling interest | 105.1 | 13.2 |
Ending Balance | -375.9 | -650 |
Derivative financial instruments fair value adjustment [Member] | ||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0.6 | -0.2 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | -0.6 | 0.2 |
Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning Balance | -0.8 | -0.4 |
Income tax (benefit) expense | 0 | 0 |
Net current period other comprehensive (loss) income, net of income taxes | 0 | 0 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | ||
Net current period comprehensive (loss) income, net of income taxes and non-controlling interest | 0 | 0 |
Ending Balance | ($0.80) | ($0.40) |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Income (Loss) from Continuing Operations Attributable to Parent | ($135.20) | $60 |
Less Undistributed Earnings (Loss) Allocated to Nonvested Stock | 0 | 0.1 |
Net income available to common shareholders for basic earnings per share and diluted earnings per share | ($135.20) | $59.90 |
Denominator: | ||
Weighted Average Number of Shares Outstanding, Basic | 87,670,640 | 92,172,595 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 807,549 |
Weighted average number of shares outstanding, assuming dilution of stock options and awards | 87,670,640 | 92,980,144 |
Income (Loss) from Continuing Operations, Per Basic Share | ($1.54) | $0.64 |
Income (Loss) from Continuing Operations, Per Diluted Share | ($1.54) | $0.64 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended |
Mar. 31, 2014 | |
Earnings Per Share (Textual) [Abstract] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 904,555 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Assets | $2,820.40 | $3,001.40 | |
Net sales to external customers: | |||
Net sales | 722.5 | 736.8 | |
Segment EBIT: | |||
Total EBIT for reportable segments | 80.6 | 112.5 | |
Pension Settlement Charges | 215.2 | 0.7 | |
Interest expense | -8 | -5.5 | |
Investment Income, Interest | 0.7 | 1 | |
Income From Continuing Operations Before Income Taxes | -156.1 | 88.3 | |
Mobile Industries [Member] | |||
Net sales to external customers: | |||
Net sales | 393 | 421.7 | |
Segment EBIT: | |||
Total EBIT for reportable segments | 35.4 | 64.3 | |
Process Industries [Member] | |||
Net sales to external customers: | |||
Net sales | 329.5 | 315.1 | |
Segment EBIT: | |||
Total EBIT for reportable segments | 45.2 | 48.2 | |
Corporate, Non-Segment [Member] | |||
Segment EBIT: | |||
Unallocated corporate expenses | -14.2 | -19.7 | |
Pension Settlement Charges | ($215.20) | $0 |
Impairment_and_Restructuring_C2
Impairment and Restructuring Charges (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring and Related Cost [Line Items] | ||
Tangible Asset Impairment Charges | $2.70 | |
Impairment and Restructuring Charges for the Mobile Segment | ||
Severance Costs | 0.4 | 2.3 |
Exit costs | 3.1 | 0.9 |
Total | 6.2 | 3.2 |
Mobile Industries [Member] | ||
Restructuring and Related Cost [Line Items] | ||
Tangible Asset Impairment Charges | 0.1 | |
Impairment and Restructuring Charges for the Mobile Segment | ||
Severance Costs | 0.4 | 1.8 |
Exit costs | 0.1 | 0.3 |
Total | 0.6 | 2.1 |
Process Industries [Member] | ||
Restructuring and Related Cost [Line Items] | ||
Tangible Asset Impairment Charges | 2.6 | |
Impairment and Restructuring Charges for the Mobile Segment | ||
Severance Costs | 0 | 0.5 |
Exit costs | 3 | 0.6 |
Total | $5.60 | $1.10 |
Impairment_and_Restructuring_C3
Impairment and Restructuring Charges (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Tangible Asset Impairment Charges | $2.70 | ||
Severance Costs | 0.4 | 2.3 | |
Business Exit Costs | 3.1 | 0.9 | |
Restructuring, Settlement and Impairment Provisions | 6.2 | 3.2 | |
Roll Forward consolidated restructuring accrual | |||
Beginning Balance | 9.5 | 10.8 | 10.8 |
Expense | 3.5 | 14.5 | |
Payments | -1.8 | -15.8 | |
Ending Balance | 11.2 | 9.5 | |
Mobile Industries [Member] | |||
Tangible Asset Impairment Charges | 0.1 | ||
Severance Costs | 0.4 | 1.8 | |
Business Exit Costs | 0.1 | 0.3 | |
Restructuring, Settlement and Impairment Provisions | 0.6 | 2.1 | |
Process Industries [Member] | |||
Tangible Asset Impairment Charges | 2.6 | ||
Severance Costs | 0 | 0.5 | |
Business Exit Costs | 3 | 0.6 | |
Restructuring, Settlement and Impairment Provisions | $5.60 | $1.10 |
Impairment_and_Restructuring_C4
Impairment and Restructuring Charges (Details Textual) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring and Related Cost [Line Items] | ||||
Exit costs | $3.10 | $0.90 | ||
Restructuring accrual | 11.2 | 9.5 | 10.8 | |
Severance Costs | 0.4 | 2.3 | ||
Tangible Asset Impairment Charges | 2.7 | |||
Curtailment loss | 213.6 | 0.7 | ||
WorkforceReduction [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Restructuring and Related Cost, Number of Positions Eliminated | 30 | |||
Severance Costs | 1.2 | |||
South America [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Exit costs | 3 | |||
Mobile Industries [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Exit costs | 0.1 | 0.3 | ||
Severance Costs | 0.4 | 1.8 | ||
Tangible Asset Impairment Charges | 0.1 | |||
Mobile Industries [Member] | WorkforceReduction [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance Costs | 0.7 | |||
Mobile Industries [Member] | Europe [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance Costs | 1 | 0.4 | ||
Process Industries [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Exit costs | 3 | 0.6 | ||
Severance Costs | 0 | 0.5 | ||
Tangible Asset Impairment Charges | 2.6 | |||
Process Industries [Member] | WorkforceReduction [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Severance Costs | 0.5 | |||
Foreign Pension Plan, Defined Benefit [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Curtailment loss | 0 | 0.7 | ||
Repair Business [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | $2.50 |
Retirement_Benefit_Plans_Detai
Retirement Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of Retirees | 5,000 | |
Pension obligations transferred | $575 | |
Defined Benefit Plan, Assets Transferred to (from) Plan | 635 | |
Lump Sum Distributions Paid | 11 | |
Components of net periodic benefit cost: | ||
Service cost | 4.6 | 7.9 |
Interest cost | 16.1 | 37 |
Expected return on plan assets | -22.1 | -53.6 |
Amortization of prior service cost | 0.8 | 1 |
Amortization of net actuarial loss | 10.9 | 18.5 |
Curtailment loss | 213.6 | 0.7 |
Net periodic benefit cost from discontinued operations | 0 | -4.4 |
Net periodic benefit cost | 223.9 | 7.1 |
Pension Settlement Charges | 215.2 | 0.7 |
Professional Fees | 1.6 | |
Pension Plan, Defined Benefit [Member] | ||
Components of net periodic benefit cost: | ||
Service cost | 3.9 | 7.3 |
Interest cost | 13 | 32 |
Expected return on plan assets | -17.9 | -47.2 |
Amortization of prior service cost | 0.8 | 1 |
Amortization of net actuarial loss | 9.6 | 17 |
Curtailment loss | 213.6 | 0 |
Net periodic benefit cost from discontinued operations | 0 | -4.5 |
Net periodic benefit cost | 223 | 5.6 |
Foreign Pension Plan, Defined Benefit [Member] | ||
Components of net periodic benefit cost: | ||
Service cost | 0.7 | 0.6 |
Interest cost | 3.1 | 5 |
Expected return on plan assets | -4.2 | -6.4 |
Amortization of prior service cost | 0 | 0 |
Amortization of net actuarial loss | 1.3 | 1.5 |
Curtailment loss | 0 | 0.7 |
Net periodic benefit cost from discontinued operations | 0 | 0.1 |
Net periodic benefit cost | $0.90 | $1.50 |
Postretirement_Benefit_Plans_D
Postretirement Benefit Plans (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost from discontinued operations | $0 | ($4.40) |
Components of net periodic benefit cost: | ||
Service cost | 4.6 | 7.9 |
Interest cost | 16.1 | 37 |
Expected return on plan assets | -22.1 | -53.6 |
Amortization of prior service credit | 0.8 | 1 |
Amortization of net actuarial loss | 10.9 | 18.5 |
Net periodic benefit cost from discontinued operations | 0 | -4.4 |
Net periodic benefit cost | 223.9 | 7.1 |
Postretirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic benefit cost from discontinued operations | 0 | -1.7 |
Components of net periodic benefit cost: | ||
Service cost | 0.1 | 0.7 |
Interest cost | 2.7 | 6.1 |
Expected return on plan assets | -1.8 | -2.8 |
Amortization of prior service credit | 0.2 | 0.1 |
Net periodic benefit cost from discontinued operations | 0 | -1.7 |
Net periodic benefit cost | $1.20 | $2.40 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | ($21.30) | $28 |
Effective tax rate | 13.60% | 31.70% |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | 13.60% | 31.70% |
Income Tax Expense (Benefit) | $21.30 | ($28) |
Income From Continuing Operations Before Income Taxes | $156.10 | ($88.30) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | 15.30% | 31.60% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% |
Fair_Value_Details
Fair Value (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held For Sale Carrying Value - Fair Value Disclosure | $5.20 | |
Assets and Liabilities Measured at fair value on a recurring basis | ||
Restricted cash | 14.8 | 15.3 |
Foreign currency hedges | 26.3 | 12.4 |
Foreign currency hedges | 1 | 0.3 |
Assets Held For Sale Fair Value Adjustment - Fair Value Disclosure | -2.5 | |
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.7 | |
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | -0.2 | |
Long Lived Fixed Assets Held and Used at Fair Value - Fair Value Disclosure | 0.5 | |
Fair Value, Measurements, Recurring [Member] | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 154.4 | 278.8 |
Restricted cash | 14.8 | 15.3 |
Short-term investments | 5.6 | 8.4 |
Foreign currency hedges | 26.3 | 12.4 |
Total Assets | 201.1 | 314.9 |
Foreign currency hedges | 1 | 0.3 |
Total Liabilities | 1 | 0.3 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 133.6 | 155.6 |
Restricted cash | 0 | 0 |
Short-term investments | 0 | 0 |
Foreign currency hedges | 0 | 0 |
Total Assets | 133.6 | 155.6 |
Foreign currency hedges | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 20.8 | 123.2 |
Restricted cash | 14.8 | 15.3 |
Short-term investments | 5.6 | 8.4 |
Foreign currency hedges | 26.3 | 12.4 |
Total Assets | 67.5 | 159.3 |
Foreign currency hedges | 1 | 0.3 |
Total Liabilities | 1 | 0.3 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 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 |
Repair Business [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held For Sale Carrying Value - Fair Value Disclosure | 5.2 | |
Assets and Liabilities Measured at fair value on a recurring basis | ||
Assets Held For Sale Fair Value Adjustment - Fair Value Disclosure | ($2.50) |
Fair_Value_Details_Textual
Fair Value (Details Textual) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held For Sale Carrying Value - Fair Value Disclosure | $5.20 | |
Maximum Maturity Period of Cash and Cash Equivalent | three months or less | |
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | -0.2 | |
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.7 | |
Maturity Period of Short Term Investments | four months and one year | |
Long-term Debt, Fair Value | 568.7 | 558.6 |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2.7 | |
Long Lived Fixed Assets Held and Used at Fair Value - Fair Value Disclosure | 0.5 | |
Assets Held For Sale Fair Value Adjustment - Fair Value Disclosure | -2.5 | |
Long-term Fixed-rate Debt, Carrying Value | 519.6 | 521.4 |
Repair Business [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held For Sale Carrying Value - Fair Value Disclosure | 5.2 | |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2.7 | |
Assets Held For Sale Fair Value Adjustment - Fair Value Disclosure | -2.5 | |
Property, Plant and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | -0.2 | |
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.7 | |
Long Lived Fixed Assets Held and Used at Fair Value - Fair Value Disclosure | $0.50 |
Derivatives_and_Hedging_Activi2
Derivatives and Hedging Activities (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Forward Currency Forward Contracts [Abstract] | |||
Unrealized Gain on Foreign Currency Derivatives, before Tax | $0.60 | ($0.20) | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 0.7 | -0.2 | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 13.4 | 4.2 | |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 0.6 | 0.6 | |
Foreign Currency Fair Value Hedge Asset at Fair Value | 0.6 | 0.6 | |
Derivative, Notional Amount | 224.2 | 194.1 | |
Foreign Currency Fair Value Hedge Liability at Fair Value | 0.1 | 0 | |
Derivative Instruments in Hedges, Assets, at Fair Value | 0.6 | 0.6 | |
Derivative Instruments in Hedges, Liabilities, at Fair Value | 0.1 | 0 | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 25.7 | 11.8 | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 0.9 | 0.3 | |
Derivative Asset | 26.3 | 12.4 | |
Derivative Liability | 1 | 0.3 | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | 0.6 | -0.2 | |
Derivative Instruments Not Designated as Hedging Instruments, Gain | $13.40 | $4.20 |