Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | Timken Co. |
Entity Central Index Key | 98,362 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 77,814,737 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | $ 657.4 | $ 707.4 | $ 2,015 | $ 2,157.9 |
Cost of products sold | 489.9 | 512 | 1,484.3 | 1,554.9 |
Gross Profit | 167.5 | 195.4 | 530.7 | 603 |
Selling, general and administrative expenses | 109.5 | 120.7 | 338 | 375.3 |
Impairment and restructuring charges | 5.3 | 4.4 | 18.7 | 12 |
Gain (Loss) on Disposition of Business | 0 | 0 | 0 | 0.3 |
Pension Settlement Charges | 10.3 | 3.6 | 11.9 | 223.2 |
Operating Income (Loss) | 42.4 | 66.7 | 162.1 | (7.8) |
Interest expense | (8) | (8.6) | (25.1) | (25) |
Investment Income, Interest | 0.4 | 0.6 | 1.1 | 2 |
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | (0.2) | 0 | 53.6 | 0 |
Other (expense) income, net | (0.1) | (0.8) | (1.8) | (0.8) |
Income (Loss) Before Income Taxes | 34.5 | 57.9 | 189.9 | (31.6) |
Provision (benefit) for income taxes | 13.5 | (6.6) | 61.1 | 1 |
Net Income | 21 | 64.5 | 128.8 | (32.6) |
Net (loss) income attributable to noncontrolling interest | 0.4 | 1.1 | 0.3 | 2.5 |
Net Income (loss) attributable to The Timken Company | $ 20.6 | $ 63.4 | $ 128.5 | $ (35.1) |
Net Income per Common Share attributable to The Timken Company Common Shareholders | ||||
Basic earnings per share | $ 0.26 | $ 0.76 | $ 1.63 | $ (0.41) |
Diluted earnings per share | 0.26 | 0.75 | 1.62 | (0.41) |
Common Stock, Dividends, Per Share, Declared | $ 0.26 | $ 0.26 | $ 0.78 | $ 0.77 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 21 | $ 64.5 | $ 128.8 | $ (32.6) |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 2.2 | (30.9) | (1.4) | (52.1) |
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 15 | 13 | 27 | 120.5 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 0 | 1.2 | (1.6) | 0.9 |
Other comprehensive income | 17.2 | (16.7) | 24 | 69.3 |
Comprehensive Income | 38.2 | 47.8 | 152.8 | 36.7 |
Less: comprehensive (loss) income attributable to noncontrolling interest | 0.9 | 0 | 2.1 | 0.9 |
Comprehensive Income attributable to The Timken Company | $ 37.3 | $ 47.8 | $ 150.7 | $ 35.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 129 | $ 129.6 |
Restricted cash | 2.7 | 0.2 |
Accounts receivable, less allowances (2016 – $18.3 million; 2015 – $16.9 million) | 452.8 | 454.6 |
Inventories, net | 575.9 | 543.2 |
Deferred charges and prepaid expenses | 20.3 | 22.7 |
Other current assets | 46.1 | 56.1 |
Total Current Assets | 1,226.8 | 1,206.4 |
Property, Plant and Equipment, net | 796.6 | 777.8 |
Other Assets | ||
Goodwill | 359 | 327.3 |
Non-current pension assets | 84.5 | 86.3 |
Other intangible assets | 274.5 | 271.3 |
Deferred income taxes | 50.6 | 65.9 |
Other Assets, Noncurrent | 27.2 | 49.1 |
Total Other Assets | 795.8 | 799.9 |
Total Assets | 2,819.2 | 2,784.1 |
Current Liabilities | ||
Short-term debt | 22.5 | 62 |
Current portion of long-term debt | 0 | 15.1 |
Accounts payable, trade | 184.5 | 159.7 |
Salaries, wages and benefits | 89.3 | 102.3 |
Income taxes payable | 12.1 | 13.1 |
Other current liabilities | 142.1 | 153.1 |
Total Current Liabilities | 450.5 | 505.3 |
Non-Current Liabilities | ||
Long-term debt | 641.4 | 579.4 |
Accrued pension cost | 148.1 | 146.9 |
Accrued postretirement benefits cost | 130.7 | 136.1 |
Deferred income taxes | 3.3 | 3.6 |
Other non-current liabilities | 79 | 68.2 |
Total Non-Current Liabilities | 1,002.5 | 934.2 |
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 | 905.4 | 905.1 |
Earnings invested in the business | 1,524.7 | 1,457.6 |
Accumulated other comprehensive loss | (264.8) | (287) |
Treasury shares at cost (2016 - 19,152,333 shares; 2015 - 18,112,047 shares) | (878.9) | (804.3) |
Total Shareholders' Equity | 1,339.5 | 1,324.5 |
Noncontrolling Interest | 26.7 | 20.1 |
Total Equity | 1,366.2 | 1,344.6 |
Total Liabilities and Shareholders' Equity | $ 2,819.2 | $ 2,784.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ / shares in Millions, $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 18.3 | $ 16.9 |
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 | 20,560,398 | 18,112,047 |
Acquisitions Statement
Acquisitions Statement $ in Millions | Jul. 08, 2016USD ($) |
Business Acquisition [Line Items] | |
Acquisition Costs, Cumulative | $ 95.7 |
Lovejoy [Member] | |
Business Acquisition [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 7.5 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 13.2 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 15.5 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 24.1 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 5.2 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 30.1 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0.1 |
Acquisition Costs, Cumulative | 63.5 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 8.1 |
Business Combination Purchase Price Allocation Current Liabilities Accrued Liabilities | 1.2 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 5.3 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 2.2 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 9.2 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 7.6 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 33.6 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 62.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Activities | ||
Net Income (loss) attributable to The Timken Company | $ 128.5 | $ (35.1) |
Net (loss) income attributable to noncontrolling interest | 0.3 | 2.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 98.3 | 97.8 |
Impairment charges | 3.8 | 3.3 |
Loss on sale of assets | 0.8 | 2.1 |
Gain (Loss) on Disposition of Business | 0 | (0.3) |
Deferred income tax provision | (0.1) | (81.1) |
Stock-based compensation expense | 10.9 | 14.1 |
Excess Tax Benefit from Share-based Compensation, Operating Activities | 0 | (1.5) |
Pension and other postretirement expense | 38.4 | 251.5 |
Pension contributions and other postretirement benefit payments | (22.3) | (23.5) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 12.2 | (1.9) |
Inventories | (13.6) | 7.1 |
Accounts payable, trade | 15 | 27 |
Other accrued expenses | (19.1) | (57.6) |
Income taxes | 22.9 | 23.5 |
Other, net | 1.1 | 18.1 |
Net Cash Provided by Operating Activities | 277.1 | 246.3 |
Investing Activities | ||
Capital expenditures | (84.4) | (65.1) |
Acquisitions, net of cash received | 62.8 | 213.6 |
Proceeds from disposals of property, plant and equipment | 1.5 | 11 |
Increase (Decrease) in Marketable Securities, Restricted | 2.1 | (0.6) |
Other | 0.3 | (0.5) |
Net Cash Used by Investing Activities | (143.3) | (268.8) |
Financing Activities | ||
Cash dividends paid to shareholders | (61.4) | (65.7) |
Purchase of treasury shares | (83.3) | (227.9) |
Net proceeds from common share activity | 0.7 | 4 |
Excess Tax Benefit from Share-based Compensation, Financing Activities | 0 | 1.5 |
Proceeds from Issuance of Long-term Debt | 275.5 | 225.7 |
Payments of Financing Costs | 0 | 2 |
Proceeds from Accounts Receivable Securitization | 50 | 116 |
Repayments of Accounts Receivable Securitization | (30.1) | (38) |
Payments on long-term debt | (290.1) | (106.1) |
Short-term debt activity, net | (1.4) | (1.6) |
Increase (Decrease) in Restricted Cash | (2.5) | 0.2 |
Proceeds from (Payments for) Other Financing Activities | 4.5 | 3.7 |
Net Cash Used by Financing Activities | (138.1) | (90.2) |
Effect of exchange rate changes on cash | 3.7 | (11.1) |
(Decrease) increase In Cash and Cash Equivalents | (0.6) | (123.8) |
Cash and cash equivalents beginning of period | 129.6 | 278.8 |
Cash and cash equivalents end of period | $ 129 | $ 155 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
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 accompanying Notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 . Certain amounts reported in the 2015 Consolidated Statements of Cash Flows have been reclassified to conform to the current cash flow presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Adopted Accounting Pronouncements | Note 2 - Recent Accounting Pronouncements New Accounting Guidance Adopted: In September 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments." ASU 2015-16 eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This new accounting guidance does not eliminate the requirement for the measurement period to be completed within one year. On January 1, 2016, the Company adopted the provisions of ASU 2015-16. The impact of the adoption of ASU 2015-16 was immaterial to the Company's results of operations and financial condition as there was only a minor measurement-period adjustment during the first nine months of 2016. In May 2015, the FASB issued ASU 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)." ASU 2015-07 eliminates the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the net asset value ("NAV") practical expedient provided in Accounting Standards Codification ("ASC") 820, "Fair Value Measurement." Instead, entities will be required to disclose the fair values of such investments so that financial statement users can reconcile amounts reported in the fair value hierarchy table and the amounts reported on the balance sheet. On January 1, 2016, the Company adopted the provisions of ASU 2015-07. The adoption of ASU 2015-07 did not have any impact on the Company's results of operations or financial condition as the new guidance addresses disclosure only. See Note 17 - Fair Value for the new disclosures. In April 2015, the FASB issued ASU 2015-05, "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Prior to the issuance of this new accounting guidance, there was no explicit guidance about a customer's accounting for fees paid in a cloud computing arrangement. On January 1, 2016, the Company adopted the provisions of ASU 2015-05 on a prospective basis. The adoption of ASU 2015-05 did not have any impact on the Company's results of operations or financial condition. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that all costs incurred to issue debt be presented in the balance sheet as a direct deduction to the carrying value of debt. Prior to the issuance of this new accounting guidance, debt issuance costs were required to be presented in the balance sheet as a deferred charge (i.e., an asset), and only a debt discount was recorded as a direct deduction to the carrying value of debt. ASU 2015-03 requires that the new accounting guidance be applied on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. On January 1, 2016, the Company adopted the provisions of ASU 2015-03. The following financial statement line items at December 31, 2015 were affected by the adoption of ASU 2015-03. As Originally Reported New Presentation Effect of Change Assets: Other non-current assets $ 50.3 $ 49.1 $ 1.2 Liabilities: Long-term debt $ 580.6 $ 579.4 $ 1.2 New Accounting Guidance Issued and Not Yet Adopted: In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." ASU 2016-13 changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The new guidance will replace the current incurred loss approach with an expected loss model. The new expected credit loss impairment model will apply to most financial assets measured at amortized cost and certain other instruments, including trade and other receivables, loans, held-to-maturity debt instruments, net investments in leases, loan commitments and standby letters of credit. Upon initial recognition of the exposure, the expected credit loss model requires entities to estimate the credit losses expected over the life of an exposure (or pool of exposures). The estimate of expected credit losses should consider historical information, current information, and reasonable and supportable forecasts, including estimates of prepayments. Financial instruments with similar risk characteristics should be grouped together when estimating expected credit losses. ASU 2016-13 does not prescribe a specific method to make the estimate so its application will require significant judgment. ASU 2016-13 is effective in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the effect that ASU 2016-13 will have on the Company's results of operations and financial condition. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies various aspects of the accounting for stock-based payments. The simplifications include: a. recording all tax effects associated with stock-based compensation through the income statement, as opposed to recording certain amounts in other paid-in capital, which eliminates the complications of tracking a “windfall pool,” but will increase the volatility of income tax expense; b. allowing entities to withhold shares to satisfy the employer’s statutory tax withholding requirement up to the highest marginal tax rate applicable to employees rather than the employer’s minimum statutory rate, without requiring liability classification for the award; c. modifying the requirement to estimate the number of awards that will ultimately vest by providing an accounting policy election to either estimate the number of forfeitures or recognize forfeitures as they occur; and d. changing certain presentation requirements in the statement of cash flows, including removing the requirement to present excess tax benefits as an inflow from financing activities and an outflow from operating activities, and requiring the cash paid to taxing authorities arising from withheld shares to be classified as a financing activity. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted for any entity in any interim or annual period. If an entity adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. Amendments related to the timing of when excess tax benefits are recognized, minimum statutory withholding requirements, forfeitures, and intrinsic value should be applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. An entity may elect to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using either a prospective transition method or a retrospective transition method. The Company is currently evaluating the effect that ASU 2016-09 will have on the Company's results of operations and financial condition. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 was issued to increase transparency and comparability among entities by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about lease arrangements. ASU 2016-02 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the effect that ASU 2016-02 will have on the Company's results of operations and financial condition. In May 2014, the FASB issued 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. On July 9, 2015, the FASB decided to delay the effective date of this new accounting guidance by one year, which will result in it being effective for annual periods beginning after December 15, 2017. The Company is currently evaluating the effect that ASU 2014-09 will have on the Company's results of operations and financial condition. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Acquisition [Line Items] | |
Business Combination Disclosure [Text Block] | On September 1, 2015, the Company completed the acquisition of the membership interests of Carlstar Belt LLC ("Timken Belts") for $213.7 million , including cash acquired of approximately $0.1 million . The Company incurred approximately $1.0 million of legal and professional fees to acquire Timken Belts. Timken Belts is a leading North American manufacturer of belts used in industrial, commercial and consumer applications, and sold under multiple brand names, including Carlisle®, Ultimax® and Panther®, among others. The product portfolio includes more than 20,000 parts that utilize wrap molded, raw edge, v-ribbed and synchronous belt designs. Based in Springfield, Missouri, Timken Belts had annual sales of approximately $140 million for the twelve months ended June 30, 2015, and employs approximately 750 employees. The results of the operations for Timken Belts are reported in both the Mobile Industries and Process Industries segments based on customers served. In June 2016, the Company paid a net purchase price adjustment of $0.7 million in connection with the Timken Belts acquisition, resulting in an adjustment to goodwill. The following table presents the final purchase price allocation for the Timken Belts acquisition: Initial Purchase Price Allocation Adjustment Final Purchase Price Allocation Assets: Accounts receivable, net $ 13.3 $ 13.3 Inventories, net 48.5 48.5 Other current assets 1.1 1.1 Property, plant and equipment, net 37.9 37.9 Goodwill 70.8 0.7 71.5 Other intangible assets 63.9 63.9 Total assets acquired $ 235.5 $ 0.7 $ 236.2 Liabilities: Accounts payable, trade $ 10.2 $ 10.2 Salaries, wages and benefits 1.1 1.1 Other current liabilities 1.3 1.3 Accrued pension cost 2.3 2.3 Accrued postretirement benefits cost 1.1 1.1 Other non-current liabilities 5.9 5.9 Total liabilities assumed $ 21.9 $ — $ 21.9 Net assets acquired $ 213.6 $ 0.7 $ 214.3 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 - Inventories The components of inventories were as follows: September 30, December 31, Manufacturing supplies $ 29.6 $ 24.7 Raw materials 57.5 58.8 Work in process 193.3 181.9 Finished products 322.5 296.2 Subtotal 602.9 561.6 Allowance for obsolete and surplus inventory (27.0 ) (18.4 ) Total Inventories, net $ 575.9 $ 543.2 Inventories are valued at the lower of cost or market, with approximately 54% valued by the first-in, first-out ("FIFO") method and the remaining 46% 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 September 30, 2016 , and December 31, 2015 , were $182.0 million and $188.1 million , respectively. The Company recognized a decrease in its LIFO reserve of $6.1 million during the first nine months of 2016 , compared with a decrease in its LIFO reserve of $2.6 million during the first nine months of 2015 . |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2016 | |
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: September 30, December 31, Land and buildings $ 426.7 $ 430.3 Machinery and equipment 1,803.5 1,741.4 Subtotal 2,230.2 2,171.7 Accumulated depreciation (1,433.6 ) (1,393.9 ) Property, plant and equipment, net $ 796.6 $ 777.8 Total depreciation expense for the nine months ended September 30, 2016 and 2015 , was $71.0 million and $70.8 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2016 , were as follows: Mobile Industries Process Industries Total Beginning balance $ 97.0 $ 230.3 $ 327.3 Acquisitions 0.7 30.1 30.8 Foreign currency translation adjustments (0.2 ) 1.1 0.9 Ending balance $ 97.5 $ 261.5 $ 359.0 The increase in goodwill was primarily due to the acquisition of Lovejoy in July 2016. None of this goodwill is deductible for tax purposes. In addition, the Company paid a net purchase price adjustment of $0.7 million in June 2016 for Timken Belts, which resulted in an adjustment to goodwill. The following table displays intangible assets as of September 30, 2016 , and December 31, 2015 : As of September 30, 2016 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Customer relationships $ 209.3 $ 80.6 $ 128.7 $ 198.9 $ 70.0 $ 128.9 Know-how 40.7 8.0 32.7 31.9 6.7 25.2 Industrial license agreements 0.1 0.1 — 0.1 0.1 — Land-use rights 8.1 4.8 3.3 8.3 4.7 3.6 Patents 2.1 2.1 — 2.1 2.1 — Technology use 53.7 16.2 37.5 53.6 14.0 39.6 Trademarks 6.3 3.7 2.6 6.5 3.3 3.2 Non-compete agreements 0.9 0.7 0.2 2.7 2.5 0.2 Leases 0.1 — 0.1 — — — Software 250.9 209.7 41.2 243.8 197.6 46.2 $ 572.2 $ 325.9 $ 246.3 $ 547.9 $ 301.0 $ 246.9 Intangible assets not subject to amortization: Tradenames $ 19.5 $ 19.5 $ 15.7 $ 15.7 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 28.2 $ 28.2 $ 24.4 $ 24.4 Total intangible assets $ 600.4 $ 325.9 $ 274.5 $ 572.3 $ 301.0 $ 271.3 Amortization expense for intangible assets was $27.2 million and $27.0 million for the nine months ended September 30, 2016 and 2015 , respectively. Amortization expense for intangible assets is estimated to be $36.4 million in 2016 ; $32.8 million in 2017 ; $28.2 million in 2018 ; $24.0 million in 2019 ; and $19.7 million in 2020 . |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Short-term debt at September 30, 2016 , and December 31, 2015 , was as follows: September 30, December 31, Variable-rate Accounts Receivable Facility with interest rate of 1.41% at September 30, 2016 and 1.05% at December 31, 2015, respectively. $ 11.0 $ 49.0 Borrowings under variable-rate lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.28% to 0.50% at September 30, 2016 and 0.31% to 0.44% at December 31, 2015, respectively. 11.5 13.0 Short-term debt $ 22.5 $ 62.0 The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $230.3 million . Most of these lines of credit are uncommitted. At September 30, 2016 , the Company’s foreign subsidiaries had borrowings outstanding of $11.5 million and bank guarantees of $3.8 million , which reduced the availability under these facilities to $215.0 million . Long-term debt at September 30, 2016 , and December 31, 2015 , was as follows: September 30, December 31, Fixed-rate Medium-Term Notes, Series A, maturing at various dates through $ 159.5 $ 174.4 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an 345.6 344.8 Variable-rate Senior Credit Facility with an interest rate of 1.53% at September 30, 2016 and 1.45% at December 31, 2015, respectively. 76.2 75.2 Variable-rate Accounts Receivable Facility with interest rate of 1.41% at September 30, 2016 57.9 — Other 2.2 0.1 $ 641.4 $ 594.5 Less current maturities — 15.1 Long-term debt $ 641.4 $ 579.4 The Company has a $500 million Amended and Restated Credit Agreement ("Senior Credit Facility"), which matures on June 19, 2020 . At September 30, 2016 , the Company had $76.2 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $423.8 million . The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At September 30, 2016 , the Company was in full compliance with both of these covenants under the Senior Credit Facility. The Company has a $100 million Amended and Restated Asset Securitization Agreement ("Accounts Receivable Facility") that matures on November 30, 2018 . Under the terms of the Accounts Receivable Facility, the Company sells, on an ongoing basis, certain domestic trade receivables to Timken Receivables Corporation, a wholly-owned consolidated subsidiary, which 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 Accounts Receivable Facility are limited by certain borrowing base limitations. These limitations reduced the availability of the Accounts Receivable Facility to $72.5 million at September 30, 2016 . As of September 30, 2016 , there were outstanding borrowings of $68.9 million under the Accounts Receivable Facility, which reduced the availability under this facility to $3.6 million . The cost of this facility, which is the prevailing commercial paper rate plus program fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The outstanding balance under the Accounts Receivable Facility was classified in accordance with the terms of the agreement and reflects the Company's expectations relative to the minimum borrowing base. |
Contingencies (Notes)
Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 8 - Contingencies Product Warranties: The Company is currently evaluating claims raised by certain customers with respect to the performance of bearings sold into the Wind energy sector. The Company recorded warranty expense related to these claims totaling $1.4 million for the three months ended September 30, 2016 , and $4.8 million and $2.4 million for the nine months ended September 30, 2016 and 2015, respectively. No warranty expense was incurred during the three months ended September 30, 2015 related to these claims. Management believes that the outcome of these claims will not have a material effect on the Company’s consolidated financial position; however, the effect of any such outcome may be material to the results of operations of any particular period in which costs in excess of amounts provided, if any, are recognized. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | Note 9 - Equity The changes in the equity components for the nine months ended September 30, 2016 were as follows: The Timken Company Shareholders Total Stated Capital Other Paid-In Capital Earnings Invested in the Business Accumulated Other Comprehensive (Loss) Treasury Stock Non- controlling Interest Balance at December 31, 2015 $ 1,344.6 $ 53.1 $ 905.1 $ 1,457.6 $ (287.0 ) $ (804.3 ) $ 20.1 Net income 128.8 128.5 0.3 Foreign currency translation adjustment (1.4 ) (3.2 ) 1.8 Pension and postretirement liability 27.0 27.0 Change in fair value of derivative (1.6 ) (1.6 ) Investment in joint venture by 4.8 4.8 Dividends declared to noncontrolling (0.3 ) (0.3 ) Dividends – $0.78 per share (61.4 ) (61.4 ) Excess tax shortfall from stock (1.0 ) (1.0 ) Stock-based compensation expense 10.9 10.9 Stock purchased at fair market value (83.3 ) (83.3 ) Stock option exercise activity 0.7 (1.0 ) 1.7 Restricted shares (issued) surrendered — (8.6 ) 8.6 Shares surrendered for taxes (1.6 ) (1.6 ) Balance at September 30, 2016 $ 1,366.2 $ 53.1 $ 905.4 $ 1,524.7 $ (264.8 ) $ (878.9 ) $ 26.7 On March 6, 2014, Timken Lux Holdings II S.A.R.L, a subsidiary of the Company, entered into a joint venture agreement with Holme Service Limited ("joint venture partner"). During 2015, the Company and its joint venture partner established TUBC Limited, a Cyprus entity, for the purpose of producing bearings to serve the rail market sector in Russia. During 2015, the Company and its joint venture partner amended and restated the joint venture agreement and contributed $6.9 million and $6.6 million , respectively, to TUBC Limited. During the first nine months of 2016, the Company and its joint venture partner contributed $5.0 million and $4.8 million , respectively, to TUBC Limited. The Company and its joint venture partner have a 51% controlling interest and 49% controlling interest, respectively, in TUBC Limited. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Statement of Financial Position [Abstract] | |
accumulated other comprehensive income components reclassification | Note 10 - Accumulated Other Comprehensive Income (Loss) The following tables present details about components of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2016 , respectively: Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at June 30, 2016 $ (77.1 ) $ (203.1 ) $ (1.3 ) $ (281.5 ) Other comprehensive (loss) income before 2.2 1.4 (0.5 ) 3.1 Amounts reclassified from accumulated other — 15.3 0.5 15.8 Income tax (benefit) expense — (1.7 ) — (1.7 ) Net current period other comprehensive 2.2 15.0 — 17.2 Noncontrolling interest (0.5 ) — — (0.5 ) Net current period comprehensive income, net 1.7 15.0 — 16.7 Balance at September 30, 2016 $ (75.4 ) $ (188.1 ) $ (1.3 ) $ (264.8 ) Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2015 $ (72.2 ) $ (215.1 ) $ 0.3 $ (287.0 ) Other comprehensive (loss) income before (1.4 ) 6.2 (2.5 ) 2.3 Amounts reclassified from accumulated other — 25.9 (0.1 ) 25.8 Income tax (benefit) expense — (5.1 ) 1.0 (4.1 ) Net current period other comprehensive (1.4 ) 27.0 (1.6 ) 24.0 Noncontrolling interest (1.8 ) — — (1.8 ) Net current period comprehensive income (loss), net (3.2 ) 27.0 (1.6 ) 22.2 Balance at September 30, 2016 $ (75.4 ) $ (188.1 ) $ (1.3 ) $ (264.8 ) $10.6 million of the $25.9 million before-tax reclassification of pension and postretirement liability adjustments was included in pension settlement charges in the Consolidated Statement of Income for the nine months ended September 30, 2016 . The remaining before-tax reclassification of pension and postretirement liability adjustments of $15.3 million was due to the amortization of actuarial losses and prior service costs and was included in costs of products sold and selling, general and administrative expenses in the Consolidated Statement of Income. The reclassification of the remaining components of accumulated other comprehensive income (loss) was included in other (expense) income, net in the Consolidated Statement of Income. The following tables present details about components of accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2015 , respectively: Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at June 30, 2015 $ (21.4 ) $ (373.5 ) $ (1.1 ) $ (396.0 ) Other comprehensive (loss) income before (30.9 ) 4.2 2.1 (24.6 ) Amounts reclassified from accumulated other — 13.4 (0.2 ) 13.2 Income tax (benefit) expense — (4.6 ) (0.7 ) (5.3 ) Net current period other comprehensive (30.9 ) 13.0 1.2 (16.7 ) Noncontrolling interest 1.1 — — 1.1 Net current period comprehensive income (loss), net (29.8 ) 13.0 1.2 (15.6 ) Balance at September 30, 2015 $ (51.2 ) $ (360.5 ) $ 0.1 $ (411.6 ) 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 (52.1 ) (62.3 ) 2.1 (112.3 ) Amounts reclassified from accumulated other — 251.3 (0.7 ) 250.6 Income tax (benefit) expense — (68.5 ) (0.5 ) (69.0 ) Net current period other comprehensive (52.1 ) 120.5 0.9 69.3 Noncontrolling interest 1.6 — — 1.6 Net current period comprehensive income (loss), net (50.5 ) 120.5 0.9 70.9 Balance at September 30, 2015 $ (51.2 ) $ (360.5 ) $ 0.1 $ (411.6 ) Other comprehensive income (loss) before reclassifications and income taxes includes the effect of foreign currency. $221.0 million of the $251.3 million before-tax reclassification of pension and postretirement liability adjustments was included in pension settlement charges in the Consolidated Statement of Income for the nine months ended September 30, 2015 . The remaining before-tax reclassification of pension and postretirement liability adjustments of $30.3 million was due to the amortization of actuarial losses and prior service costs and was included in costs of products sold and selling, general and administrative expenses in the Consolidated Statement of Income. The reclassification of the remaining components of accumulated other comprehensive income (loss) was included in other (expense) income, net in the Consolidated Statement of Income. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income (loss) attributable to The Timken Company $ 20.6 $ 63.4 $ 128.5 $ (35.1 ) Less: undistributed earnings allocated to nonvested stock — — — — Net income (loss) available to common shareholders for basic $ 20.6 $ 63.4 $ 128.5 $ (35.1 ) Denominator: Weighted average number of shares outstanding, basic 77,935,783 83,671,931 78,808,179 85,578,800 Effect of dilutive securities: Stock options and awards based on the treasury stock method 681,693 473,820 663,577 — Weighted average number of shares outstanding, assuming dilution 78,617,476 84,145,751 79,471,756 85,578,800 Basic earnings (loss) per share $ 0.26 $ 0.76 $ 1.63 $ (0.41 ) Diluted earnings (loss) per share $ 0.26 $ 0.75 $ 1.62 $ (0.41 ) The exercise prices for certain stock options that the Company has awarded exceed the average market price of the Company’s common shares. Such stock options are antidilutive and were not included in the computation of diluted earnings per share. The antidilutive stock options outstanding during the three months ended September 30, 2016 and 2015 , were 2,706,711 and 2,761,824 , respectively. During the nine months ended September 30, 2016 , the antidilutive stock options outstanding were 3,080,133 . During the nine months ended September 30, 2015 , the Company incurred a net loss and therefore treated all stock options and restricted stock units as antidilutive. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 12 - 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 Nine Months Ended 2016 2015 2016 2015 Net sales: Mobile Industries $ 353.1 $ 396.4 $ 1,104.1 $ 1,178.0 Process Industries 304.3 311.0 910.9 979.9 $ 657.4 $ 707.4 $ 2,015.0 $ 2,157.9 Segment EBIT: Mobile Industries $ 24.1 $ 43.0 $ 89.6 $ 114.4 Process Industries 40.7 43.1 120.0 145.0 Total EBIT, for reportable segments $ 64.8 $ 86.1 $ 209.6 $ 259.4 Unallocated corporate expenses (12.2 ) (16.6 ) (37.4 ) (44.8 ) Unallocated pension settlement charges (10.3 ) (3.6 ) (11.9 ) (223.2 ) Continued Dumping & Subsidy Offset Act income (0.2 ) — 53.6 — Interest expense (8.0 ) (8.6 ) (25.1 ) (25.0 ) Interest income 0.4 0.6 1.1 2.0 Income (loss) before income taxes $ 34.5 $ 57.9 $ 189.9 $ (31.6 ) |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | Note 13 - Impairment and Restructuring Charges Impairment and restructuring charges by segment are comprised of the following: For the three months ended September 30, 2016 : Mobile Industries Process Industries Corporate Total Impairment charges $ 1.2 $ — $ — $ 1.2 Severance and related benefit costs 2.9 0.4 — 3.3 Exit costs 0.3 0.5 — 0.8 Total $ 4.4 $ 0.9 $ — $ 5.3 For the three months ended September 30, 2015 : Mobile Industries Process Industries Corporate Total Severance and related benefit costs $ 2.0 $ 1.7 $ 0.6 $ 4.3 Exit costs 0.1 — — 0.1 Total $ 2.1 $ 1.7 $ 0.6 $ 4.4 For the nine months ended September 30, 2016 : Mobile Industries Process Industries Corporate Total Impairment charges $ 3.8 $ — $ — $ 3.8 Severance and related benefit costs 7.7 4.9 — 12.6 Exit costs 1.6 0.7 — 2.3 Total $ 13.1 $ 5.6 $ — $ 18.7 For the nine months ended September 30, 2015 : Mobile Industries Process Industries Corporate Total Impairment charges $ 0.1 $ 3.2 $ — $ 3.3 Severance and related benefit costs 2.7 1.7 0.6 5.0 Exit costs 0.7 3.0 — 3.7 Total $ 3.5 $ 7.9 $ 0.6 $ 12.0 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 On September 29, 2016, the Company announced the closure of its bearing plant in Pulaski, Tennessee ("Pulaski"). The plant is expected to close in approximately one year from the announcement date. The closure of the Pulaski bearing plant is expected to affect approximately 120 employees. During the three months ended September 30, 2016, the Company recorded severance and related benefit costs of $1.7 million related to this closure. In August 2016, the Company completed the consultation process to close the manufacturing operations in Benoni, South Africa ("Benoni"). South Africa will continue to recondition bearings and assemble rail bearings. Approximately 85 employees will be affected by the announcement. During the three months ended September 30, 2016, the Company recorded impairment charges of $0.5 million and severance and related benefit costs of $0.8 million related to this closure. On March 17, 2016, the Company announced the closure of its bearing plant in Altavista, Virginia ("Altavista"). The plant is expected to close in approximately one year from the announcement date, with production transferring to the Company's bearing plant near Lincolnton, North Carolina. During the three months ended September 30, 2016, the Company recorded impairment charges of $0.7 million and severance and related benefits of $0.2 million related to this closure. During the first nine months of 2016 , the Company recorded impairment charges of $3.1 million and severance and related benefit costs of $1.7 million related to this closure. On September 8, 2014, the Company announced the closure of its bearing facility in Wolverhampton, United Kingdom. This facility closed during the second quarter of 2016 and the Company recorded exit costs of $0.8 million related to this closure. In addition, the Company incurred $1.2 million of severance and related benefit costs related to the rationalization of one of its facilities in Europe during the first nine months of 2015 . Process Industries During the first nine months of 2015 , the Company recorded impairment charges of $3.0 million related to the Company's repair business in Niles, Ohio ("Niles"). See Note 17 - Fair Value for additional information on the impairment charges for the repair business. In addition, 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 Colombia. Workforce Reductions: During the first nine months of 2016 , the Company recognized $7.7 million of severance and related benefit costs to eliminate approximately 175 positions, in the aggregate. Of the $7.7 million charge for the first nine months of 2016 , $2.9 million related to the Mobile Industries segment and $4.8 million related to the Process Industries segment. During the three and nine months ended September 30, 2015, the Company recognized $4.0 million of severance and related benefit costs to eliminate approximately 65 positions. Of the $4.0 million charge for the third quarter of 2015, $1.8 million related to the Mobile Industries segment, $1.6 million related to the Process Industries segment and $0.6 million related to corporate positions. The following is a rollforward of the consolidated restructuring accrual for the nine months ended September 30, 2016 , and the twelve months ended December 31, 2015 : September 30, December 31, Beginning balance, January 1 $ 11.3 $ 9.5 Expense 14.9 11.4 Payments (16.0 ) (9.6 ) Ending balance $ 10.2 $ 11.3 The restructuring accruals at September 30, 2016 , and December 31, 2015 , were included in other current liabilities on the Consolidated Balance Sheets. |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefit Plans | Note 14 - 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 and nine months ended September 30, 2016 , are based on calculations prepared by the Company's actuaries during the second quarter of 2016 and represent the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2016 . U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 3.3 $ 3.9 $ 0.4 $ 0.4 $ 3.7 $ 4.3 Interest cost 6.7 11.4 2.6 3.2 9.3 14.6 Expected return on plan assets (7.4 ) (15.8 ) (2.6 ) (4.2 ) (10.0 ) (20.0 ) Amortization of prior service cost 0.4 0.7 0.1 0.1 0.5 0.8 Amortization of net actuarial loss 3.6 7.8 0.8 1.2 4.4 9.0 Pension settlements and curtailments — 3.5 10.2 — 10.2 3.5 Net periodic benefit cost $ 6.6 $ 11.5 $ 11.5 $ 0.7 $ 18.1 $ 12.2 U.S. Plans International Plans Total Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 9.9 $ 11.5 $ 1.1 $ 1.8 $ 11.0 $ 13.3 Interest cost 20.0 35.6 8.2 9.4 28.2 45.0 Expected return on plan assets (22.3 ) (49.2 ) (8.0 ) (12.6 ) (30.3 ) (61.8 ) Amortization of prior service cost 1.2 2.1 0.1 0.1 1.3 2.2 Amortization of net actuarial loss 10.9 24.1 2.4 3.9 13.3 28.0 Pension settlements and curtailments — 219.9 10.6 1.1 10.6 221.0 Net periodic benefit cost $ 19.7 $ 244.0 $ 14.4 $ 3.7 $ 34.1 $ 247.7 On September 8, 2016 , the Retirement Plan for the Hourly-Rated Employees of Timken Canada LP (the "Plan") purchased a group annuity contract from The Canada Life Assurance Company ("Canada Life") to pay and administer future pension benefits for 135 Canadian Timken retirees. The Plan was associated with former employees of the St. Thomas, Ontario manufacturing facility, which closed on March 31, 2013. The Company transferred approximately $15 million of the Company's pension obligations and $15 million of pension assets to Canada Life in this transaction. In addition to the purchase of the group annuity contract, the Company made lump-sum distributions of $6.8 million to deferred vested participants in the Plan during the second and third quarters of 2016. As a result of the group annuity contract and lump-sum distributions in Canada, as well as professional fees of $1.3 million associated with the implementation of a group annuity contract in the United States, the Company incurred total pension settlement charges of $11.9 million for the nine months ended September 30, 2016 . On January 23, 2015 , the Timken-Latrobe-MPB-Torrington Retirement Plan purchased a group annuity contract from Prudential Insurance Company of America ("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 $635 million of pension assets to Prudential in this transaction. In addition to the purchase of the group annuity contract, the Company made lump-sum distributions to new retirees of $29.5 million in 2015. The Company also incurred pension settlement and curtailment charges related to one of its Canadian defined benefit pension plans. As a result of the purchase of the group annuity contract and lump-sum distributions, as well as pension settlement and curtailment charges related to the Company's Canadian pension plans, the Company incurred total pension settlement charges of $223.2 million , including professional fees of $2.2 million , for the nine months ended September 30, 2015 . The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three and nine months ended September 30, 2016 , are based on calculations prepared by the Company's actuaries during the second quarter of 2016 and represent the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2016 . Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost 2.7 2.7 8.2 8.1 Expected return on plan assets (1.6 ) (1.8 ) (4.9 ) (5.3 ) Amortization of prior service cost 0.2 0.2 0.7 0.6 Amortization of net actuarial loss — 0.1 — 0.1 Net periodic benefit cost $ 1.4 $ 1.3 $ 4.3 $ 3.8 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |
Postretirement Benefit Plans | Note 14 - 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 and nine months ended September 30, 2016 , are based on calculations prepared by the Company's actuaries during the second quarter of 2016 and represent the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2016 . U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 3.3 $ 3.9 $ 0.4 $ 0.4 $ 3.7 $ 4.3 Interest cost 6.7 11.4 2.6 3.2 9.3 14.6 Expected return on plan assets (7.4 ) (15.8 ) (2.6 ) (4.2 ) (10.0 ) (20.0 ) Amortization of prior service cost 0.4 0.7 0.1 0.1 0.5 0.8 Amortization of net actuarial loss 3.6 7.8 0.8 1.2 4.4 9.0 Pension settlements and curtailments — 3.5 10.2 — 10.2 3.5 Net periodic benefit cost $ 6.6 $ 11.5 $ 11.5 $ 0.7 $ 18.1 $ 12.2 U.S. Plans International Plans Total Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 9.9 $ 11.5 $ 1.1 $ 1.8 $ 11.0 $ 13.3 Interest cost 20.0 35.6 8.2 9.4 28.2 45.0 Expected return on plan assets (22.3 ) (49.2 ) (8.0 ) (12.6 ) (30.3 ) (61.8 ) Amortization of prior service cost 1.2 2.1 0.1 0.1 1.3 2.2 Amortization of net actuarial loss 10.9 24.1 2.4 3.9 13.3 28.0 Pension settlements and curtailments — 219.9 10.6 1.1 10.6 221.0 Net periodic benefit cost $ 19.7 $ 244.0 $ 14.4 $ 3.7 $ 34.1 $ 247.7 On September 8, 2016 , the Retirement Plan for the Hourly-Rated Employees of Timken Canada LP (the "Plan") purchased a group annuity contract from The Canada Life Assurance Company ("Canada Life") to pay and administer future pension benefits for 135 Canadian Timken retirees. The Plan was associated with former employees of the St. Thomas, Ontario manufacturing facility, which closed on March 31, 2013. The Company transferred approximately $15 million of the Company's pension obligations and $15 million of pension assets to Canada Life in this transaction. In addition to the purchase of the group annuity contract, the Company made lump-sum distributions of $6.8 million to deferred vested participants in the Plan during the second and third quarters of 2016. As a result of the group annuity contract and lump-sum distributions in Canada, as well as professional fees of $1.3 million associated with the implementation of a group annuity contract in the United States, the Company incurred total pension settlement charges of $11.9 million for the nine months ended September 30, 2016 . On January 23, 2015 , the Timken-Latrobe-MPB-Torrington Retirement Plan purchased a group annuity contract from Prudential Insurance Company of America ("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 $635 million of pension assets to Prudential in this transaction. In addition to the purchase of the group annuity contract, the Company made lump-sum distributions to new retirees of $29.5 million in 2015. The Company also incurred pension settlement and curtailment charges related to one of its Canadian defined benefit pension plans. As a result of the purchase of the group annuity contract and lump-sum distributions, as well as pension settlement and curtailment charges related to the Company's Canadian pension plans, the Company incurred total pension settlement charges of $223.2 million , including professional fees of $2.2 million , for the nine months ended September 30, 2015 . The following table sets forth the net periodic benefit cost for the Company’s other postretirement benefit plans. The amounts for the three and nine months ended September 30, 2016 , are based on calculations prepared by the Company's actuaries during the second quarter of 2016 and represent the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2016 . Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost 2.7 2.7 8.2 8.1 Expected return on plan assets (1.6 ) (1.8 ) (4.9 ) (5.3 ) Amortization of prior service cost 0.2 0.2 0.7 0.6 Amortization of net actuarial loss — 0.1 — 0.1 Net periodic benefit cost $ 1.4 $ 1.3 $ 4.3 $ 3.8 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16 - 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 Nine Months Ended 2016 2015 2016 2015 Provision (benefit) for income taxes $ 13.5 $ (6.6 ) $ 61.1 $ 1.0 Effective tax rate 39.1 % (11.4 )% 32.2 % (3.2 )% In accordance with ASC Topic 740, "Income Taxes," the effective tax rate in the third quarter of 2016 was calculated as the difference between the income taxes computed for the nine months, as described below, and the year-to-date income taxes recorded as of June 30, 2016. This computation resulted in an effective tax rate of 39.1% for the third quarter of 2016, including discrete items. The effective tax rate in the first nine months of 2016 was computed based on an expected annual effective tax rate of 31.6% , excluding discrete items. Discrete tax items are recorded in the period in which they occur. Including the impact of discrete tax items, the effective tax rate was 32.2% in the first nine months of 2016, This rate was lower than the U.S. federal statutory rate of 35% primarily due to tax benefits related to foreign tax credits, earnings in certain foreign jurisdictions where the effective tax rate is less than 35% and other U.S. tax benefits, such as the U.S. Research and Experimentation credit 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, U.S. state and local taxes and the net impact of discrete tax items. The effective tax rate in the third quarter of 2015 was calculated as the difference between the income taxes computed for the nine months, as described below, and the year-to-date income taxes recorded as of June 30, 2015. This computation resulted in an effective tax rate of negative 11.4% for the third quarter of 2015, including discrete items. The effective tax rate of negative 11.4% was primarily due to the change in the Company's 2015 forecast and the variability caused by the large pension settlement charge recorded in the first quarter of 2015. The effective tax rate in the first nine months of 2015 was computed based on an estimated overall annual effective tax rate of negative 3.2% , including discrete items (expected tax benefits on expected pretax income). The rate reflected an estimated full year loss in the U.S. primarily driven by pension settlement charges and earnings in foreign jurisdictions, which were expected to produce a net tax benefit on pre-tax income. The effective tax rate of negative 3.2% 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, U.S. state and local tax benefits, non-taxable U.S. income 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, non-deductible U.S. expenses and certain discrete tax expenses. In the third quarter of 2016, the Company reclassified $18.6 million of tax payments in India to income taxes payable in order to apply these payments to the underlying liabilities to which they relate. This item was identified during a routine review of the balances in these accounts. Management of the Company concluded that this change from gross to net presentation of these items in the third quarter of 2016 and the presence of the gross presentation in prior periods was immaterial to all periods presented. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 17 - Fair Value Fair value is defined as the price that would be expected to 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 September 30, 2016 , and December 31, 2015 : September 30, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 112.6 $ 112.6 $ — $ — Cash and cash equivalents measured at net asset value 16.4 Restricted cash 2.7 2.7 — — Short-term investments 7.0 — 7.0 — Short-term investments measured at net asset value 0.4 Foreign currency hedges 2.8 — 2.8 — Total Assets $ 141.9 $ 115.3 $ 9.8 $ — Liabilities: Foreign currency hedges $ 2.3 $ — $ 2.3 $ — Total Liabilities $ 2.3 $ — $ 2.3 $ — December 31, 2015 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 110.2 $ 110.2 $ — $ — Cash and cash equivalents measured net asset value 19.4 Restricted cash 0.2 0.2 — — Short-term investments 8.9 — 8.9 — Short-term investments measured at net asset value 0.8 Foreign currency hedges 8.2 — 8.2 — Total Assets $ 147.7 $ 110.4 $ 17.1 $ — Liabilities: Foreign currency hedges $ 0.4 $ — $ 0.4 $ — Total Liabilities $ 0.4 $ — $ 0.4 $ — Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are generally valued at the redemption value. Short-term investments are investments with maturities between four months and one year and are generally valued at amortized cost. A portion of the cash and cash equivalents and short-term investment are valued based on net asset value. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts. The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments. The following table presents those assets measured at fair value on a nonrecurring basis for the nine months ended September 30, 2016 , using Level 3 inputs: Carrying Value Fair Value Adjustment Fair Value Long-lived assets held for sale: Land $ 0.2 $ (0.2 ) $ — Total long-lived assets held for sale $ 0.2 $ (0.2 ) $ — Long-lived assets held and used: Altavista bearing plant $ 5.6 $ (3.1 ) $ 2.5 Equipment at Benoni bearing plant 0.5 (0.5 ) — Total long-lived assets held and used $ 6.1 $ (3.6 ) $ 2.5 Assets held for sale of $0.2 million were written down to their fair value of zero during the first quarter of 2016, resulting in an impairment charge. The fair value of these assets was based on the price that the Company expects to receive when it disposes of these assets. On March 17, 2016, the Company announced the closure of its Altavista bearing plant. The plant is expected to close in approximately one year from the announcement date, with production transferring to the Company's bearing plant near Lincolnton, North Carolina. The Altavista bearing plant, with a carrying value of $5.6 million , was written down to its fair value of $3.2 million during the first quarter of 2016, resulting in an impairment of $2.4 million . The fair value for the plant was based on the price that the Company expects to receive from the sale of this facility. During the third quarter of 2016, the Company reevaluated the fair value of this facility. The Altavista bearing plant was written down to its fair value of $2.5 million during the third quarter of 2016, resulting in an additional impairment of $0.7 million . In August 2016, the Company completed the consultation process to close the manufacturing operations in Benoni. The Benoni facility will continue to recondition bearings and assemble rail bearings. Equipment at this facility, with a carrying value of $0.5 million , was written down to its fair value of zero during the third quarter of 2016, resulting in an impairment of $0.5 million . The fair value for the equipment was based on the price that the Company expects to receive from the sale of the equipment. The following table presents those assets measured at fair value on a nonrecurring basis for the nine months ended September 30, 2015 , using Level 3 inputs: Carrying Value Fair Value Adjustment Fair Value Long-lived assets held for sale: Repair business $ 5.8 $ (3.0 ) $ 2.8 Total long-lived assets held for sale $ 5.8 $ (3.0 ) $ 2.8 Long-lived assets held and used: Fixed assets $ 0.8 $ (0.3 ) $ 0.5 Total long-lived assets held and used $ 0.8 $ (0.3 ) $ 0.5 Assets held for sale of $5.8 million associated with the Company's repair business in Niles were written down to their fair value of $2.8 million during the first and second quarters of 2015 , resulting in an impairment charge of $3.0 million . The fair value of these assets was based on the price that the Company expected to receive from the sale of these assets. This business was subsequently sold during the second quarter of 2015 for an immaterial loss. Various items of property, plant and equipment, with a carrying value of $0.8 million , were written down to their fair value of $0.5 million during the first nine months of 2015 , resulting in an impairment charge of $0.3 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 $547.4 million and $521.5 million at September 30, 2016 , and December 31, 2015 , respectively. The carrying value of this debt was $507.3 million and $519.2 million at September 30, 2016 , and December 31, 2015 , respectively. The fair value of long-term fixed-debt was measured using Level 2 inputs. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative [Line Items] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 18 - Derivative Instruments and Hedging Activities The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are foreign currency exchange rate risk, commodity price risk and interest rate risk. Forward 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 to manage the price risk associated with forecasted purchases of natural gas used in the Company’s manufacturing process. Interest rate swaps are used 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 Company does not purchase nor hold any derivative financial instruments for trading purposes. As of September 30, 2016 , and December 31, 2015 , the Company had $247.9 million and $235.7 million , respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 17 - 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. The maximum length of time over which the Company hedges its exposure to the variability in future cash flows for forecasted transactions is generally 18 months or less. 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 the loan with a maturity date at the maturity of the loan. The revaluation of these contracts, as well as 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 of the Company's hedging instruments. Those balances are presented in the other non-current assets/liabilities accounts within the Consolidated Balance Sheets. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Foreign currency forward contracts $ 0.3 $ 2.2 $ 1.1 $ 0.2 Total derivatives designated as hedging instruments 0.3 2.2 1.1 0.2 Derivatives not designated as hedging instruments Foreign currency forward contracts 2.5 6.0 1.2 0.2 Total Derivatives $ 2.8 $ 8.2 $ 2.3 $ 0.4 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 instruments Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2016 2015 2016 2015 Foreign currency forward contracts $ (0.5 ) $ 2.1 $ (2.5 ) $ 2.1 Total $ (0.5 ) $ 2.1 $ (2.5 ) $ 2.1 Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Income ("AOCI") into income (effective portion) Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2016 2015 2016 2015 Foreign currency forward contracts $ (0.4 ) $ 0.3 $ 0.4 $ 1.0 Interest rate swaps (0.1 ) (0.1 ) (0.3 ) (0.3 ) Total $ (0.5 ) $ 0.2 $ 0.1 $ 0.7 Amount of gain or (loss) recognized in income on derivative instruments Three Months Ended Nine Months Ended Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income on derivative 2016 2015 2016 2015 Foreign currency forward contracts Other (expense) income, net $ (0.2 ) $ (16.3 ) $ (4.5 ) $ 9.8 Total $ (0.2 ) $ (16.3 ) $ (4.5 ) $ 9.8 |
Continued Dumping and Subsidy A
Continued Dumping and Subsidy Act (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
CDSOA [Abstract] | |
Continued Dumping And Subsidy Offset Act [Text Block] | Note 19 - Continued Dumping and Subsidy Offset Act (CDSOA) The U.S. Continued Dumping and Subsidy Offset Act ("CDSOA") provides for distribution of monies collected by U.S. Customs and Border Protection ("U.S. Customs") on entries of merchandise subject to antidumping orders that entered the U.S. prior to October 1, 2007, to qualifying domestic producers where the domestic producers have continued to invest in their technology, equipment and people. During the third quarter of 2016, the Company recognized CDSOA expense of $0.2 million . During the first nine months of 2016, the Company recognized pretax CDSOA income, net of related expenses of $53.6 million . In September 2002, the World Trade Organization ruled that CDSOA payments are not consistent with international trade rules. In February 2006, U.S. legislation was enacted that ended CDSOA distributions for imports covered by antidumping duty orders entering the United States after September 30, 2007. Instead, any such antidumping duties collected would remain with the U.S. Treasury. CDSOA has been the subject of significant litigation since 2002, and U.S. Customs has withheld CDSOA distributions in recent years while litigation was ongoing. In recent months, much of the CDSOA litigation that involves antidumping orders where Timken is a qualifying domestic producer has concluded. As a result, the Company was notified by letters dated March 25, 2016, and June 24, 2016 that funds were being distributed to the Company. On April 1, 2016, and July 1, 2016, the Company received CDSOA distributions of $48.1 million and $6.3 million , respectively, in the aggregate, representing funds that would have been distributed to the Company at the end of calendar years 2011 through 2015. While some of the challenges to CDSOA have been resolved, others are still in litigation. Since there continue to be legal challenges to CDSOA, U.S. Customs has advised all affected domestic producers that it is possible that CDSOA distributions could be subject to clawback. Management of the Company believes that the likelihood of any clawback is remote. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table summarizes the initial purchase price allocation for identifiable intangible assets acquired in 2016: Initial Purchase Weighted - Trade name $ 3.7 Indefinite Technology 8.9 19 years All customer relationships 11.1 20 years Non-competition agreements 0.2 5 years Favorable leases 0.1 2 years Capitalized software 0.1 4 years Total intangible assets $ 24.1 |
Fair values of the assets acquired and liabilities assumed | The following table presents the final purchase price allocation for the Lovejoy acquisition: Initial Purchase Price Allocation Assets: Accounts receivable, net $ 7.5 Inventories, net 13.2 Other current assets 5.2 Property, plant and equipment, net 15.5 Goodwill 30.1 Other intangible assets 24.1 Other non-current assets 0.1 Total assets acquired $ 95.7 Liabilities: Accounts payable, trade $ 8.1 Salaries, wages and benefits 1.2 Other current liabilities 5.3 Long term debt 2.2 Deferred income taxes 9.2 Other non-current liabilities 7.6 Total liabilities assumed $ 33.6 Net assets acquired $ 62.1 The following table presents the final purchase price allocation for the Timken Belts acquisition: Initial Purchase Price Allocation Adjustment Final Purchase Price Allocation Assets: Accounts receivable, net $ 13.3 $ 13.3 Inventories, net 48.5 48.5 Other current assets 1.1 1.1 Property, plant and equipment, net 37.9 37.9 Goodwill 70.8 0.7 71.5 Other intangible assets 63.9 63.9 Total assets acquired $ 235.5 $ 0.7 $ 236.2 Liabilities: Accounts payable, trade $ 10.2 $ 10.2 Salaries, wages and benefits 1.1 1.1 Other current liabilities 1.3 1.3 Accrued pension cost 2.3 2.3 Accrued postretirement benefits cost 1.1 1.1 Other non-current liabilities 5.9 5.9 Total liabilities assumed $ 21.9 $ — $ 21.9 Net assets acquired $ 213.6 $ 0.7 $ 214.3 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Components of inventories | The components of inventories were as follows: September 30, December 31, Manufacturing supplies $ 29.6 $ 24.7 Raw materials 57.5 58.8 Work in process 193.3 181.9 Finished products 322.5 296.2 Subtotal 602.9 561.6 Allowance for obsolete and surplus inventory (27.0 ) (18.4 ) Total Inventories, net $ 575.9 $ 543.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | |
Components of property, plant and equipment | The components of property, plant and equipment were as follows: September 30, December 31, Land and buildings $ 426.7 $ 430.3 Machinery and equipment 1,803.5 1,741.4 Subtotal 2,230.2 2,171.7 Accumulated depreciation (1,433.6 ) (1,393.9 ) Property, plant and equipment, net $ 796.6 $ 777.8 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Change in the carrying amount of goodwill | The changes in the carrying amount of goodwill for the nine months ended September 30, 2016 , were as follows: Mobile Industries Process Industries Total Beginning balance $ 97.0 $ 230.3 $ 327.3 Acquisitions 0.7 30.1 30.8 Foreign currency translation adjustments (0.2 ) 1.1 0.9 Ending balance $ 97.5 $ 261.5 $ 359.0 |
Intangible assets | The following table displays intangible assets as of September 30, 2016 , and December 31, 2015 : As of September 30, 2016 As of December 31, 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Customer relationships $ 209.3 $ 80.6 $ 128.7 $ 198.9 $ 70.0 $ 128.9 Know-how 40.7 8.0 32.7 31.9 6.7 25.2 Industrial license agreements 0.1 0.1 — 0.1 0.1 — Land-use rights 8.1 4.8 3.3 8.3 4.7 3.6 Patents 2.1 2.1 — 2.1 2.1 — Technology use 53.7 16.2 37.5 53.6 14.0 39.6 Trademarks 6.3 3.7 2.6 6.5 3.3 3.2 Non-compete agreements 0.9 0.7 0.2 2.7 2.5 0.2 Leases 0.1 — 0.1 — — — Software 250.9 209.7 41.2 243.8 197.6 46.2 $ 572.2 $ 325.9 $ 246.3 $ 547.9 $ 301.0 $ 246.9 Intangible assets not subject to amortization: Tradenames $ 19.5 $ 19.5 $ 15.7 $ 15.7 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 28.2 $ 28.2 $ 24.4 $ 24.4 Total intangible assets $ 600.4 $ 325.9 $ 274.5 $ 572.3 $ 301.0 $ 271.3 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-term debt | Short-term debt at September 30, 2016 , and December 31, 2015 , was as follows: September 30, December 31, Variable-rate Accounts Receivable Facility with interest rate of 1.41% at September 30, 2016 and 1.05% at December 31, 2015, respectively. $ 11.0 $ 49.0 Borrowings under variable-rate lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.28% to 0.50% at September 30, 2016 and 0.31% to 0.44% at December 31, 2015, respectively. 11.5 13.0 Short-term debt $ 22.5 $ 62.0 |
Long-term debt | Long-term debt at September 30, 2016 , and December 31, 2015 , was as follows: September 30, December 31, Fixed-rate Medium-Term Notes, Series A, maturing at various dates through $ 159.5 $ 174.4 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an 345.6 344.8 Variable-rate Senior Credit Facility with an interest rate of 1.53% at September 30, 2016 and 1.45% at December 31, 2015, respectively. 76.2 75.2 Variable-rate Accounts Receivable Facility with interest rate of 1.41% at September 30, 2016 57.9 — Other 2.2 0.1 $ 641.4 $ 594.5 Less current maturities — 15.1 Long-term debt $ 641.4 $ 579.4 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | The changes in the equity components for the nine months ended September 30, 2016 were as follows: The Timken Company Shareholders Total Stated Capital Other Paid-In Capital Earnings Invested in the Business Accumulated Other Comprehensive (Loss) Treasury Stock Non- controlling Interest Balance at December 31, 2015 $ 1,344.6 $ 53.1 $ 905.1 $ 1,457.6 $ (287.0 ) $ (804.3 ) $ 20.1 Net income 128.8 128.5 0.3 Foreign currency translation adjustment (1.4 ) (3.2 ) 1.8 Pension and postretirement liability 27.0 27.0 Change in fair value of derivative (1.6 ) (1.6 ) Investment in joint venture by 4.8 4.8 Dividends declared to noncontrolling (0.3 ) (0.3 ) Dividends – $0.78 per share (61.4 ) (61.4 ) Excess tax shortfall from stock (1.0 ) (1.0 ) Stock-based compensation expense 10.9 10.9 Stock purchased at fair market value (83.3 ) (83.3 ) Stock option exercise activity 0.7 (1.0 ) 1.7 Restricted shares (issued) surrendered — (8.6 ) 8.6 Shares surrendered for taxes (1.6 ) (1.6 ) Balance at September 30, 2016 $ 1,366.2 $ 53.1 $ 905.4 $ 1,524.7 $ (264.8 ) $ (878.9 ) $ 26.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 and nine months ended September 30, 2016 and 2015 : Three Months Ended Nine Months Ended 2016 2015 2016 2015 Numerator: Net income (loss) attributable to The Timken Company $ 20.6 $ 63.4 $ 128.5 $ (35.1 ) Less: undistributed earnings allocated to nonvested stock — — — — Net income (loss) available to common shareholders for basic $ 20.6 $ 63.4 $ 128.5 $ (35.1 ) Denominator: Weighted average number of shares outstanding, basic 77,935,783 83,671,931 78,808,179 85,578,800 Effect of dilutive securities: Stock options and awards based on the treasury stock method 681,693 473,820 663,577 — Weighted average number of shares outstanding, assuming dilution 78,617,476 84,145,751 79,471,756 85,578,800 Basic earnings (loss) per share $ 0.26 $ 0.76 $ 1.63 $ (0.41 ) Diluted earnings (loss) per share $ 0.26 $ 0.75 $ 1.62 $ (0.41 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Net sales: Mobile Industries $ 353.1 $ 396.4 $ 1,104.1 $ 1,178.0 Process Industries 304.3 311.0 910.9 979.9 $ 657.4 $ 707.4 $ 2,015.0 $ 2,157.9 Segment EBIT: Mobile Industries $ 24.1 $ 43.0 $ 89.6 $ 114.4 Process Industries 40.7 43.1 120.0 145.0 Total EBIT, for reportable segments $ 64.8 $ 86.1 $ 209.6 $ 259.4 Unallocated corporate expenses (12.2 ) (16.6 ) (37.4 ) (44.8 ) Unallocated pension settlement charges (10.3 ) (3.6 ) (11.9 ) (223.2 ) Continued Dumping & Subsidy Offset Act income (0.2 ) — 53.6 — Interest expense (8.0 ) (8.6 ) (25.1 ) (25.0 ) Interest income 0.4 0.6 1.1 2.0 Income (loss) before income taxes $ 34.5 $ 57.9 $ 189.9 $ (31.6 ) |
Impairment and Restructuring 35
Impairment and Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 September 30, 2016 : Mobile Industries Process Industries Corporate Total Impairment charges $ 1.2 $ — $ — $ 1.2 Severance and related benefit costs 2.9 0.4 — 3.3 Exit costs 0.3 0.5 — 0.8 Total $ 4.4 $ 0.9 $ — $ 5.3 For the three months ended September 30, 2015 : Mobile Industries Process Industries Corporate Total Severance and related benefit costs $ 2.0 $ 1.7 $ 0.6 $ 4.3 Exit costs 0.1 — — 0.1 Total $ 2.1 $ 1.7 $ 0.6 $ 4.4 For the nine months ended September 30, 2016 : Mobile Industries Process Industries Corporate Total Impairment charges $ 3.8 $ — $ — $ 3.8 Severance and related benefit costs 7.7 4.9 — 12.6 Exit costs 1.6 0.7 — 2.3 Total $ 13.1 $ 5.6 $ — $ 18.7 For the nine months ended September 30, 2015 : Mobile Industries Process Industries Corporate Total Impairment charges $ 0.1 $ 3.2 $ — $ 3.3 Severance and related benefit costs 2.7 1.7 0.6 5.0 Exit costs 0.7 3.0 — 3.7 Total $ 3.5 $ 7.9 $ 0.6 $ 12.0 |
Roll Forward consolidated restructuring accrual | he following is a rollforward of the consolidated restructuring accrual for the nine months ended September 30, 2016 , and the twelve months ended December 31, 2015 : September 30, December 31, Beginning balance, January 1 $ 11.3 $ 9.5 Expense 14.9 11.4 Payments (16.0 ) (9.6 ) Ending balance $ 10.2 $ 11.3 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 and nine months ended September 30, 2016 , are based on calculations prepared by the Company's actuaries during the second quarter of 2016 and represent the Company’s best estimate of each period’s proportionate share of the amounts to be recorded for the year ending December 31, 2016 . U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 3.3 $ 3.9 $ 0.4 $ 0.4 $ 3.7 $ 4.3 Interest cost 6.7 11.4 2.6 3.2 9.3 14.6 Expected return on plan assets (7.4 ) (15.8 ) (2.6 ) (4.2 ) (10.0 ) (20.0 ) Amortization of prior service cost 0.4 0.7 0.1 0.1 0.5 0.8 Amortization of net actuarial loss 3.6 7.8 0.8 1.2 4.4 9.0 Pension settlements and curtailments — 3.5 10.2 — 10.2 3.5 Net periodic benefit cost $ 6.6 $ 11.5 $ 11.5 $ 0.7 $ 18.1 $ 12.2 U.S. Plans International Plans Total Nine Months Ended Nine Months Ended Nine Months Ended 2016 2015 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 9.9 $ 11.5 $ 1.1 $ 1.8 $ 11.0 $ 13.3 Interest cost 20.0 35.6 8.2 9.4 28.2 45.0 Expected return on plan assets (22.3 ) (49.2 ) (8.0 ) (12.6 ) (30.3 ) (61.8 ) Amortization of prior service cost 1.2 2.1 0.1 0.1 1.3 2.2 Amortization of net actuarial loss 10.9 24.1 2.4 3.9 13.3 28.0 Pension settlements and curtailments — 219.9 10.6 1.1 10.6 221.0 Net periodic benefit cost $ 19.7 $ 244.0 $ 14.4 $ 3.7 $ 34.1 $ 247.7 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Post Retirement Benefit Plans | |
Defined Contribution Plan Disclosures [Table Text Block] | Three Months Ended Nine Months Ended 2016 2015 2016 2015 Components of net periodic benefit cost: Service cost $ 0.1 $ 0.1 $ 0.3 $ 0.3 Interest cost 2.7 2.7 8.2 8.1 Expected return on plan assets (1.6 ) (1.8 ) (4.9 ) (5.3 ) Amortization of prior service cost 0.2 0.2 0.7 0.6 Amortization of net actuarial loss — 0.1 — 0.1 Net periodic benefit cost $ 1.4 $ 1.3 $ 4.3 $ 3.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Provision (benefit) for income taxes $ 13.5 $ (6.6 ) $ 61.1 $ 1.0 Effective tax rate 39.1 % (11.4 )% 32.2 % (3.2 )% |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 nine months ended September 30, 2015 , using Level 3 inputs: Carrying Value Fair Value Adjustment Fair Value Long-lived assets held for sale: Repair business $ 5.8 $ (3.0 ) $ 2.8 Total long-lived assets held for sale $ 5.8 $ (3.0 ) $ 2.8 Long-lived assets held and used: Fixed assets $ 0.8 $ (0.3 ) $ 0.5 Total long-lived assets held and used $ 0.8 $ (0.3 ) $ 0.5 The following table presents those assets measured at fair value on a nonrecurring basis for the nine months ended September 30, 2016 , using Level 3 inputs: Carrying Value Fair Value Adjustment Fair Value Long-lived assets held for sale: Land $ 0.2 $ (0.2 ) $ — Total long-lived assets held for sale $ 0.2 $ (0.2 ) $ — Long-lived assets held and used: Altavista bearing plant $ 5.6 $ (3.1 ) $ 2.5 Equipment at Benoni bearing plant 0.5 (0.5 ) — Total long-lived assets held and used $ 6.1 $ (3.6 ) $ 2.5 |
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 September 30, 2016 , and December 31, 2015 : September 30, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 112.6 $ 112.6 $ — $ — Cash and cash equivalents measured at net asset value 16.4 Restricted cash 2.7 2.7 — — Short-term investments 7.0 — 7.0 — Short-term investments measured at net asset value 0.4 Foreign currency hedges 2.8 — 2.8 — Total Assets $ 141.9 $ 115.3 $ 9.8 $ — Liabilities: Foreign currency hedges $ 2.3 $ — $ 2.3 $ — Total Liabilities $ 2.3 $ — $ 2.3 $ — December 31, 2015 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 110.2 $ 110.2 $ — $ — Cash and cash equivalents measured net asset value 19.4 Restricted cash 0.2 0.2 — — Short-term investments 8.9 — 8.9 — Short-term investments measured at net asset value 0.8 Foreign currency hedges 8.2 — 8.2 — Total Assets $ 147.7 $ 110.4 $ 17.1 $ — Liabilities: Foreign currency hedges $ 0.4 $ — $ 0.4 $ — Total Liabilities $ 0.4 $ — $ 0.4 $ — |
Derivatives and Hedging Activ40
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 of the Company's hedging instruments. Those balances are presented in the other non-current assets/liabilities accounts within the Consolidated Balance Sheets. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments September 30, 2016 December 31, 2015 September 30, 2016 December 31, 2015 Foreign currency forward contracts $ 0.3 $ 2.2 $ 1.1 $ 0.2 Total derivatives designated as hedging instruments 0.3 2.2 1.1 0.2 Derivatives not designated as hedging instruments Foreign currency forward contracts 2.5 6.0 1.2 0.2 Total Derivatives $ 2.8 $ 8.2 $ 2.3 $ 0.4 |
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 instruments Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2016 2015 2016 2015 Foreign currency forward contracts $ (0.5 ) $ 2.1 $ (2.5 ) $ 2.1 Total $ (0.5 ) $ 2.1 $ (2.5 ) $ 2.1 Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Income ("AOCI") into income (effective portion) Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2016 2015 2016 2015 Foreign currency forward contracts $ (0.4 ) $ 0.3 $ 0.4 $ 1.0 Interest rate swaps (0.1 ) (0.1 ) (0.3 ) (0.3 ) Total $ (0.5 ) $ 0.2 $ 0.1 $ 0.7 |
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 instruments Three Months Ended Nine Months Ended Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income on derivative 2016 2015 2016 2015 Foreign currency forward contracts Other (expense) income, net $ (0.2 ) $ (16.3 ) $ (4.5 ) $ 9.8 Total $ (0.2 ) $ (16.3 ) $ (4.5 ) $ 9.8 |
Recent Accounting Pronounceme41
Recent Accounting Pronouncements Table (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Assets, Noncurrent | $ 27.2 | $ 49.1 |
Long-term Debt, Excluding Current Maturities | $ 641.4 | 579.4 |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | On January 1, 2016, the Company adopted the provisions of ASU 2015-03. The following financial statement line items at December 31, 2015 were affected by the adoption of ASU 2015-03. As Originally Reported New Presentation Effect of Change Assets: Other non-current assets $ 50.3 $ 49.1 $ 1.2 Liabilities: Long-term debt $ 580.6 $ 579.4 $ 1.2 | |
Adjustments for New Accounting Pronouncement [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Assets, Noncurrent | 1.2 | |
Long-term Debt, Excluding Current Maturities | 1.2 | |
Accounting Standards Update - originally reported [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Assets, Noncurrent | 50.3 | |
Long-term Debt, Excluding Current Maturities | 580.6 | |
Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Other Assets, Noncurrent | 49.1 | |
Long-term Debt, Excluding Current Maturities | $ 579.4 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 01, 2015 |
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | $ 13.3 | $ 13.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 48.5 | 48.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 1.1 | 1.1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 37.9 | 37.9 | ||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 71.5 | 70.8 | ||
Business Combination Adjusted Purchase Price Allocation Goodwill Amount [Line Items] | $ 359 | 0.7 | $ 327.3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 63.9 | 63.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 236.2 | 235.5 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 10.2 | 10.2 | ||
Business Combination Purchase Price Allocation Current Liabilities Accrued Liabilities | 1.1 | 1.1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 1.3 | 1.3 | ||
Business Combination Pension Liability | 2.3 | 2.3 | ||
business combination postretirement liability assumed | 1.1 | 1.1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 5.9 | 5.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 21.9 | 21.9 | ||
Liabilities | 0 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 214.3 | 213.6 | ||
Carlstar [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 0.1 |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2016 | Jul. 08, 2016 | Jun. 30, 2016 | Sep. 01, 2015 | |
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 63.9 | $ 63.9 | ||
Lovejoy [Member] | ||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | $ 24.1 | |||
Lovejoy [Member] | Technology-Based Intangible Assets [Member] | ||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 8.9 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 19 years | |||
Lovejoy [Member] | Computer Software, Intangible Asset [Member] | ||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 0.1 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years | |||
Lovejoy [Member] | Customer Relationships [Member] | ||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 11.1 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 20 years | |||
Lovejoy [Member] | Non-compete agreements [Member] | ||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 0.2 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | |||
Lovejoy [Member] | Off-Market Favorable Lease [Member] | ||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 0.1 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | |||
Lovejoy [Member] | Trade name [Member] | ||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 3.7 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 0 years |
Acquisitions (Details Textual)
Acquisitions (Details Textual) $ in Millions | Jul. 08, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Sep. 01, 2015USD ($)Person |
Business Acquisition [Line Items] | ||||||||
Acquisition Costs, Cumulative | $ 95.7 | |||||||
Acquisitions (Textual) [Abstract] | ||||||||
Net sales | $ 657.4 | $ 707.4 | $ 2,015 | $ 2,157.9 | ||||
Goodwill | $ 62.8 | $ 213.6 | ||||||
Lovejoy [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition Costs, Cumulative | 63.5 | |||||||
Business Acquisition, Transaction Costs | 1.6 | |||||||
Acquisitions (Textual) [Abstract] | ||||||||
Net sales | $ 55 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.2 | |||||||
Cash Acquired from Acquisition | $ 1.4 | |||||||
Carlstar [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition Costs, Cumulative | $ 213.7 | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 0.1 | |||||||
Business Acquisition, Transaction Costs | $ 1 | |||||||
Acquisitions (Textual) [Abstract] | ||||||||
Business Acquisition Number of Employees Employed | Person | 750 | |||||||
Net sales | $ 140 | |||||||
Goodwill | $ 0.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventories, net: | ||
Manufacturing supplies | $ 29.6 | $ 24.7 |
Raw materials | 57.5 | 58.8 |
Work in process | 193.3 | 181.9 |
Finished products | 322.5 | 296.2 |
Subtotal | 602.9 | 561.6 |
Allowance for obsolete and surplus inventory | (27) | (18.4) |
Total Inventories, net | $ 575.9 | $ 543.2 |
Property, Plant and Equipment46
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment: | ||
Land and buildings | $ 426.7 | $ 430.3 |
Machinery and equipment | 1,803.5 | 1,741.4 |
Subtotal | 2,230.2 | 2,171.7 |
Accumulated depreciation | (1,433.6) | (1,393.9) |
Property, Plant and Equipment, net | $ 796.6 | $ 777.8 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | |
Percentage of LIFO Inventory | 46.00% | ||
Percentage of FIFO Inventory | 54.00% | ||
Inventory Reserve (LIFO) | $ 182 | $ 188.1 | |
Increase (decrease) in Inventory Reserve (LIFO) | $ 2.6 | $ 6.1 |
Property, Plant and Equipment48
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Property Plant and Equipment (Textual) [Abstract] | ||
Depreciation expense | $ 71 | $ 70.8 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Goodwill, Acquired During Period | $ 30.8 |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 327.3 |
Goodwill, Other | 0.9 |
Goodwill, Ending Balance | 359 |
Mobile Industries [Member] | |
Goodwill [Line Items] | |
Goodwill, Acquired During Period | 0.7 |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 97 |
Goodwill, Other | (0.2) |
Goodwill, Ending Balance | 97.5 |
Process Industries [Member] | |
Goodwill [Line Items] | |
Goodwill, Acquired During Period | 30.1 |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 230.3 |
Goodwill, Other | 1.1 |
Goodwill, Ending Balance | $ 261.5 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | $ 572.2 | $ 547.9 |
Intangible assets, Accumulated Amortization | 325.9 | 301 |
Intangible assets, Net Carrying Amount | 246.3 | 246.9 |
Intangible assets not subject to amortization: | ||
Indefinite Lived Intangible Assets Net | 28.2 | 24.4 |
Total intangible assets, Gross Carrying Amount | 600.4 | 572.3 |
Total intangible assets, Net Carrying Amount | 274.5 | 271.3 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 209.3 | 198.9 |
Intangible assets, Accumulated Amortization | 80.6 | 70 |
Intangible assets, Net Carrying Amount | 128.7 | 128.9 |
Know-how [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 40.7 | 31.9 |
Intangible assets, Accumulated Amortization | 8 | 6.7 |
Intangible assets, Net Carrying Amount | 32.7 | 25.2 |
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 | 8.1 | 8.3 |
Intangible assets, Accumulated Amortization | 4.8 | 4.7 |
Intangible assets, Net Carrying Amount | 3.3 | 3.6 |
Patents [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 2.1 | 2.1 |
Intangible assets, Accumulated Amortization | 2.1 | 2.1 |
Intangible assets, Net Carrying Amount | 0 | 0 |
Technology use [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 53.7 | 53.6 |
Intangible assets, Accumulated Amortization | 16.2 | 14 |
Intangible assets, Net Carrying Amount | 37.5 | 39.6 |
Trademarks [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 6.3 | 6.5 |
Intangible assets, Accumulated Amortization | 3.7 | 3.3 |
Intangible assets, Net Carrying Amount | 2.6 | 3.2 |
Non-compete agreements [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 0.9 | 2.7 |
Intangible assets, Accumulated Amortization | 0.7 | 2.5 |
Intangible assets, Net Carrying Amount | 0.2 | 0.2 |
Lease Agreements [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 0.1 | 0 |
Intangible assets, Accumulated Amortization | 0 | 0 |
Intangible assets, Net Carrying Amount | 0.1 | 0 |
Computer Software, Intangible Asset [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 250.9 | 243.8 |
Intangible assets, Accumulated Amortization | 209.7 | 197.6 |
Intangible assets, Net Carrying Amount | 41.2 | 46.2 |
Trade name [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Accumulated Amortization | ||
Intangible assets, Net Carrying Amount | 19.5 | 15.7 |
Intangible assets not subject to amortization: | ||
Trade name | 19.5 | 15.7 |
Air Transportation Equipment [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Accumulated Amortization | ||
Intangible assets not subject to amortization: | ||
FAA air agency certificates | $ 8.7 | $ 8.7 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||
Amortization expense for intangible assets | $ 27.2 | $ 27 |
Future Amortization Expense Year 2015 | 36.4 | |
Future Amortization Expense Year 2016 | 32.8 | |
Future Amortization Expense Year 2017 | 28.2 | |
Future Amortization Expense Year 2018 | 24 | |
Future Amortization Expense Year 2019 | $ 19.7 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Short-term debt | ||
Short-term debt | $ 22.5 | $ 62 |
Line of Credit Accounts Receivable Securitization [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Interest Rate at Period End | 1.41% | 1.05% |
Line of Credit Stated Variable Interest Rate Low Range | 1.41% | |
Line of Credit [Member] | Line of Credit Accounts Receivable Securitization [Member] | ||
Short-term debt | ||
Short-term debt | $ 11 | $ 49 |
Line of Credit [Member] | Foreign Subsidiary [Member] | ||
Short-term debt | ||
Short-term debt | 11.5 | $ 13 |
Line of Credit Accounts Receivable Securitization [Member] | ||
Short-term debt | ||
Short-term debt | $ 72.5 | |
Senior Unsecured Notes - 3.875% [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | |
Debt Instrument, Maturity Date | Sep. 1, 2024 | |
Series A Medium Term Note [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Maturity Date | May 1, 2028 | |
Senior Unsecured Notes - Variable Rate [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.53% | 1.45% |
Debt Instrument, Maturity Date | Jun. 20, 2020 | |
Maximum [Member] | Series A Medium Term Note [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.76% | |
Minimum [Member] | Series A Medium Term Note [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.74% |
Financing Arrangements (Detai53
Financing Arrangements (Details 1) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Long-term debt | ||
Total Long-term debt | $ 641.4 | $ 594.5 |
Less current maturities | 0 | 15.1 |
Long-term debt | 641.4 | 579.4 |
Senior Unsecured Notes - 3.875% [Member] | ||
Long-term debt | ||
Total Long-term debt | 345.6 | 344.8 |
Senior Unsecured Notes - Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 423.8 | |
Long-term debt | ||
Total Long-term debt | 76.2 | 75.2 |
Series A Medium Term Note [Member] | ||
Long-term debt | ||
Total Long-term debt | 159.5 | 174.4 |
Other Long Term Debt [Member] | ||
Long-term debt | ||
Total Long-term debt | 2.2 | 0.1 |
Line of Credit Accounts Receivable Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 3.6 | |
Line of Credit Accounts Receivable Securitization [Member] | Line of Credit [Member] | ||
Long-term debt | ||
Total Long-term debt | $ 57.9 | $ 0 |
Financing Arrangements (Detai54
Financing Arrangements (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Short-term Debt | $ 22,500,000 | $ 62,000,000 |
Long-term Fixed-rate Debt, Carrying Value | 507,300,000 | 519,200,000 |
Financing Arrangements (Textual) [Abstract] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 641,400,000 | 594,500,000 |
Accounts Receivable, less allowances (2015 - $17.2 million; 2014 - $13.7 million | 452,800,000 | 454,600,000 |
Series A Medium Term Note [Member] | ||
Financing Arrangements (Textual) [Abstract] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 159,500,000 | 174,400,000 |
Debt Instrument, Maturity Date | May 1, 2028 | |
Senior Unsecured Notes - 3.875% [Member] | ||
Financing Arrangements (Textual) [Abstract] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 345,600,000 | 344,800,000 |
Debt Instrument, Interest rate | 3.875% | |
Debt Instrument, Maturity Date | Sep. 1, 2024 | |
Senior Unsecured Notes - Variable Rate [Member] | ||
Financing Arrangements (Textual) [Abstract] | ||
Maximum borrowing capacity under line of credit | $ 500,000,000 | |
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | $ 423,800,000 | |
Line of credit expiration date | Jun. 19, 2020 | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 76,200,000 | $ 75,200,000 |
Debt Instrument, Interest rate | 1.53% | 1.45% |
Debt Instrument, Maturity Date | Jun. 20, 2020 | |
Foreign Subsidiary [Member] | ||
Financing Arrangements (Textual) [Abstract] | ||
Borrowings guarantees | $ 3,800,000 | |
Line of Credit Accounts Receivable Securitization [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term Debt | 72,500,000 | |
Financing Arrangements (Textual) [Abstract] | ||
Maximum borrowing capacity under line of credit | 100,000,000 | |
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | $ 3,600,000 | |
Line of credit expiration date | Nov. 30, 2018 | |
Line of Credit Facility, Fair Value of Amount Outstanding | $ 68,900,000 | |
Line of Credit [Member] | Foreign Subsidiary [Member] | ||
Line of Credit Facility [Line Items] | ||
Short-term Debt | 11,500,000 | $ 13,000,000 |
Financing Arrangements (Textual) [Abstract] | ||
Maximum borrowing capacity under line of credit | 230,300,000 | |
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | $ 215,000,000 | |
Line of Credit Accounts Receivable Securitization [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Interest Rate at Period End | 1.41% | 1.05% |
Financing Arrangements (Textual) [Abstract] | ||
Line of credit stated variable interest rate, Low Range | 1.41% | |
Variable Rate Lines of Credit [Member] | ||
Financing Arrangements (Textual) [Abstract] | ||
Line of credit stated variable interest rate, Low Range | 0.28% | 0.31% |
Line of Credit stated variable interest rate, High Range | 0.50% | 0.44% |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product Warranty Expense | $ 1.4 | $ 4.8 | $ 2.4 |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2014 | |
Payments to Acquire Interest in Joint Venture | $ 5 | $ 6.9 | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ 0 | $ 1.2 | (1.6) | $ 0.9 | ||||
Common Stock, Value, Issued | 53.1 | 53.1 | 53.1 | |||||
Treasury Stock, Value | 878.9 | 878.9 | 804.3 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 26.7 | 26.7 | 20.1 | |||||
Shareholding pattern | ||||||||
Beginning Balance | 1,344.6 | |||||||
Net income | 21 | 64.5 | 128.8 | (32.6) | ||||
Net (loss) income attributable to noncontrolling interest | 0.4 | 1.1 | 0.3 | 2.5 | ||||
Other Comprehensive Income Foreign Currency Translation Adjustment, net of Tax, net of Spinoff | (1.4) | |||||||
Net Income (loss) attributable to The Timken Company | 20.6 | 63.4 | 128.5 | (35.1) | ||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 15 | 13 | 27 | 120.5 | ||||
Dividends - $0.26 per share | (61.4) | |||||||
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (1) | |||||||
Stock-based compensation expense | 10.9 | |||||||
Payments for Repurchase of Common Stock | (83.3) | (227.9) | ||||||
Stock option exercise activity | 0.7 | |||||||
Restricted shares surrendered (issued) | 0 | |||||||
Shares surrendered for taxes | (1.6) | |||||||
Ending Balance | 1,366.2 | 1,366.2 | 1,344.6 | |||||
Additional Paid in Capital, Common Stock | 905.4 | 905.4 | 905.1 | |||||
Retained Earnings (Accumulated Deficit) | 1,524.7 | 1,524.7 | 1,457.6 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (264.8) | $ (411.6) | (264.8) | $ (411.6) | (287) | $ (281.5) | $ (396) | $ (482.5) |
Stated Capital [Member] | ||||||||
Shareholding pattern | ||||||||
Ending Balance | 53.1 | 53.1 | ||||||
Other Paid-In Capital [Member] | ||||||||
Shareholding pattern | ||||||||
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (1) | |||||||
Stock-based compensation expense | 10.9 | |||||||
Stock option exercise activity | (1) | |||||||
Restricted shares surrendered (issued) | (8.6) | |||||||
Ending Balance | 905.4 | 905.4 | ||||||
Earnings Invested in the Business [Member] | ||||||||
Shareholding pattern | ||||||||
Dividends - $0.26 per share | (61.4) | |||||||
Ending Balance | 1,524.7 | 1,524.7 | ||||||
Accumulated Other Comprehensive (Loss) [Member] | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (1.6) | |||||||
Shareholding pattern | ||||||||
Other Comprehensive Income Foreign Currency Translation Adjustment, net of Tax, net of Spinoff | (3.2) | |||||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 27 | |||||||
Ending Balance | (264.8) | (264.8) | ||||||
Treasury Stock [Member] | ||||||||
Shareholding pattern | ||||||||
Payments for Repurchase of Common Stock | (83.3) | |||||||
Stock option exercise activity | 1.7 | |||||||
Restricted shares surrendered (issued) | 8.6 | |||||||
Shares surrendered for taxes | (1.6) | |||||||
Ending Balance | (878.9) | (878.9) | ||||||
Noncontrolling Interest [Member] | ||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (0.3) | |||||||
Shareholding pattern | ||||||||
Other Comprehensive Income Foreign Currency Translation Adjustment, net of Tax, net of Spinoff | 1.8 | |||||||
Ending Balance | $ 26.7 | 26.7 | ||||||
Holme Service Limited [Member] | ||||||||
Payments to Acquire Interest in Joint Venture | 4.8 | $ 6.6 | ||||||
Holme Service Limited [Member] | Noncontrolling Interest [Member] | ||||||||
Payments to Acquire Interest in Joint Venture | $ 4.8 |
Equity (Details Textual)
Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | ||
Payments to Acquire Interest in Joint Venture | $ 5 | $ 6.9 |
Noncontrolling Interest in Joint Ventures | 51.00% | |
Equity (Textual) [Abstract] | ||
Pension and postretirement liability adjustment, Tax | $ 5.1 | |
Dividend per share | $ 0.78 | |
Holme Service Limited [Member] | ||
Class of Stock [Line Items] | ||
Payments to Acquire Interest in Joint Venture | $ 4.8 | $ 6.6 |
Noncontrolling Interest in Joint Ventures | 49.00% |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ 10.2 | $ 3.5 | $ 10.6 | $ 221 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 3.1 | (24.6) | 2.3 | (112.3) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 15.8 | 13.2 | 25.8 | 250.6 |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (281.5) | (396) | (287) | (482.5) |
Income tax (benefit) expense | (1.7) | (5.3) | (4.1) | (69) |
Net current period other comprehensive (loss) income, net of income taxes | 17.2 | (16.7) | 24 | 69.3 |
Other Comprehensive Income (loss), net of tax, prior to distribution of spinoff | 17.2 | (16.7) | 24 | 69.3 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | (0.5) | 1.1 | (1.8) | 1.6 |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 16.7 | (15.6) | 22.2 | 70.9 |
Ending Balance | (264.8) | (411.6) | (264.8) | (411.6) |
Foreign currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 2.2 | (30.9) | (1.4) | (52.1) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (77.1) | (21.4) | (72.2) | (0.7) |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income, net of income taxes | 2.2 | (30.9) | (1.4) | (52.1) |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | (0.5) | 1.1 | (1.8) | 1.6 |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 1.7 | (29.8) | (3.2) | (50.5) |
Ending Balance | (75.4) | (51.2) | (75.4) | (51.2) |
Pension and postretirement liability adjustment [Member] | ||||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 1.4 | 4.2 | 6.2 | (62.3) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 15.3 | 13.4 | 25.9 | 251.3 |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (203.1) | (373.5) | (215.1) | (481) |
Income tax (benefit) expense | (1.7) | (4.6) | (5.1) | (68.5) |
Net current period other comprehensive (loss) income, net of income taxes | 15 | 13 | 27 | 120.5 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 15 | 13 | 27 | 120.5 |
Ending Balance | (188.1) | (360.5) | (188.1) | (360.5) |
Defined Benefit Plan, Amortization of Gains (Losses) | (15.3) | (30.3) | ||
Derivative financial instruments fair value adjustment [Member] | ||||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (0.5) | 2.1 | (2.5) | 2.1 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0.5 | (0.2) | (0.1) | (0.7) |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (1.3) | (1.1) | 0.3 | (0.8) |
Income tax (benefit) expense | 0 | (0.7) | 1 | (0.5) |
Net current period other comprehensive (loss) income, net of income taxes | 0 | 1.2 | (1.6) | 0.9 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 0 | 1.2 | (1.6) | 0.9 |
Ending Balance | $ (1.3) | $ 0.1 | $ (1.3) | $ 0.1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Income (Loss) from Continuing Operations Attributable to Parent | $ 20.6 | $ 63.4 | $ 128.5 | $ (35.1) |
Less Undistributed Earnings (Loss) Allocated to Nonvested Stock | $ 0 | $ 0 | $ 0 | $ 0 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ 20.6 | $ 63.4 | $ 128.5 | $ (35.1) |
Denominator: | ||||
Weighted Average Number of Shares Outstanding, Basic | 77,935,783 | 83,671,931 | 78,808,179 | 85,578,800 |
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 681,693 | 473,820 | 663,577 | 0 |
Weighted average number of shares outstanding, assuming dilution of stock options and awards | 78,617,476 | 84,145,751 | 79,471,756 | 85,578,800 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | |
Earnings Per Share (Textual) [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,706,711 | 2,761,824 | 3,080,133 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||
Assets | $ 2,819.2 | $ 2,819.2 | $ 2,784.1 | ||
Net sales to external customers: | |||||
Net sales | 657.4 | $ 707.4 | 2,015 | $ 2,157.9 | |
Segment EBIT: | |||||
Total EBIT for reportable segments | 64.8 | 86.1 | 209.6 | 259.4 | |
Unallocated corporate expenses | (12.2) | (16.6) | (37.4) | (44.8) | |
Unallocated Portion of Pension Settlement Charges | (10.3) | 3.6 | (11.9) | (223.2) | |
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | (0.2) | 0 | 53.6 | 0 | |
Interest expense | (8) | (8.6) | (25.1) | (25) | |
Investment Income, Interest | 0.4 | 0.6 | 1.1 | 2 | |
Income (Loss) Before Income Taxes | 34.5 | 57.9 | 189.9 | (31.6) | |
Mobile Industries [Member] | |||||
Net sales to external customers: | |||||
Net sales | 353.1 | 396.4 | 1,104.1 | 1,178 | |
Segment EBIT: | |||||
Total EBIT for reportable segments | 24.1 | 43 | 89.6 | 114.4 | |
Process Industries [Member] | |||||
Net sales to external customers: | |||||
Net sales | 304.3 | 311 | 910.9 | 979.9 | |
Segment EBIT: | |||||
Total EBIT for reportable segments | $ 40.7 | $ 43.1 | $ 120 | $ 145 |
Impairment and Restructuring 62
Impairment and Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | $ 1.2 | $ 3.8 | $ 3.3 | |
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | 3.3 | $ 4.3 | 12.6 | 5 |
Exit costs | 0.8 | 0.1 | 2.3 | 3.7 |
Total | 5.3 | 4.4 | 18.7 | 12 |
Mobile Industries [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | 1.2 | 3.8 | 0.1 | |
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | 2.9 | 2 | 7.7 | 2.7 |
Exit costs | 0.3 | 0.1 | 1.6 | 0.7 |
Total | 4.4 | 2.1 | 13.1 | 3.5 |
Process Industries [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | 0 | 0 | 3.2 | |
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | 0.4 | 1.7 | 4.9 | 1.7 |
Exit costs | 0.5 | 0 | 0.7 | 3 |
Total | 0.9 | 1.7 | 5.6 | 7.9 |
Corporate Segment [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | 0 | 0 | ||
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | 0 | 0 | ||
Exit costs | 0 | 0 | ||
Total | $ 0 | $ 0 | ||
Corporate, Non-Segment [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | 0 | |||
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | 0.6 | 0.6 | ||
Exit costs | 0 | 0 | ||
Total | $ 0.6 | $ 0.6 |
Impairment and Restructuring 63
Impairment and Restructuring Charges (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Tangible Asset Impairment Charges | $ 1.2 | $ 3.8 | $ 3.3 | ||
Severance Costs | 3.3 | $ 4.3 | 12.6 | 5 | |
Business Exit Costs | 0.8 | 0.1 | 2.3 | 3.7 | |
Restructuring, Settlement and Impairment Provisions | 5.3 | 4.4 | 18.7 | 12 | |
Roll Forward consolidated restructuring accrual | |||||
Beginning Balance | 11.3 | 9.5 | $ 9.5 | ||
Expense | 14.9 | 11.4 | |||
Payments | (16) | (9.6) | |||
Ending Balance | 10.2 | 10.2 | $ 11.3 | ||
Mobile Industries [Member] | |||||
Tangible Asset Impairment Charges | 1.2 | 3.8 | 0.1 | ||
Severance Costs | 2.9 | 2 | 7.7 | 2.7 | |
Business Exit Costs | 0.3 | 0.1 | 1.6 | 0.7 | |
Restructuring, Settlement and Impairment Provisions | 4.4 | 2.1 | 13.1 | 3.5 | |
Process Industries [Member] | |||||
Tangible Asset Impairment Charges | 0 | 0 | 3.2 | ||
Severance Costs | 0.4 | 1.7 | 4.9 | 1.7 | |
Business Exit Costs | 0.5 | 0 | 0.7 | 3 | |
Restructuring, Settlement and Impairment Provisions | $ 0.9 | $ 1.7 | $ 5.6 | $ 7.9 |
Impairment and Restructuring 64
Impairment and Restructuring Charges (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Positions | Sep. 30, 2015USD ($)Positions | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Restructuring and Related Cost [Line Items] | |||||||
Exit costs | $ 0.8 | $ 0.1 | $ 2.3 | $ 3.7 | |||
Restructuring accrual | 10.2 | 10.2 | $ 11.3 | $ 9.5 | |||
Severance Costs | 3.3 | 4.3 | 12.6 | 5 | |||
Tangible Asset Impairment Charges | 1.2 | 3.8 | 3.3 | ||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 10.2 | 3.5 | $ 10.6 | $ 221 | |||
WorkforceReduction [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | Positions | 175 | 65 | |||||
Severance Costs | $ 7.7 | $ 4 | |||||
Pulaski [Member] | WorkforceReduction [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | Positions | 120 | ||||||
Mobile Industries [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Exit costs | 0.3 | 0.1 | $ 1.6 | 0.7 | |||
Severance Costs | 2.9 | 2 | 7.7 | 2.7 | |||
Tangible Asset Impairment Charges | 1.2 | $ 3.8 | 0.1 | ||||
Mobile Industries [Member] | WorkforceReduction [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Restructuring and Related Cost, Number of Positions Eliminated | Positions | 85 | ||||||
Severance Costs | 1.7 | 1.8 | $ 2.9 | ||||
Mobile Industries [Member] | UNITED KINGDOM | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Exit costs | $ 0.8 | ||||||
Mobile Industries [Member] | Europe [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Severance Costs | 1.2 | ||||||
Benoni [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Goodwill and Intangible Asset Impairment | 0.5 | ||||||
Benoni [Member] | WorkforceReduction [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Severance Costs | 0.8 | ||||||
Altavista Bearing Plant [Member] [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Goodwill and Intangible Asset Impairment | 0.7 | 3.1 | |||||
Severance Costs | 0.2 | 1.7 | |||||
Process Industries [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Exit costs | 0.5 | 0 | 0.7 | 3 | |||
Severance Costs | 0.4 | 1.7 | 4.9 | 1.7 | |||
Tangible Asset Impairment Charges | 0 | 0 | 3.2 | ||||
Process Industries [Member] | WorkforceReduction [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Severance Costs | 1.6 | 4.8 | |||||
Process Industries [Member] | South America [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Exit costs | 3 | ||||||
Corporate Segment [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Exit costs | 0 | 0 | |||||
Severance Costs | 0 | 0 | |||||
Tangible Asset Impairment Charges | 0 | 0 | |||||
Corporate Segment [Member] | WorkforceReduction [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Severance Costs | 0.6 | ||||||
Foreign Pension Plan, Defined Benefit [Member] | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ 10.2 | $ 0 | $ 10.6 | 1.1 | |||
Repair Business [Member] | Process Industries [Member] | UNITED STATES | |||||||
Restructuring and Related Cost [Line Items] | |||||||
Tangible Asset Impairment Charges | $ 3 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension Settlement Charges | $ 10.3 | $ 3.6 | $ 11.9 | $ 223.2 | ||
Pension obligations transferred | $ 575 | |||||
Defined Benefit Plan, Assets Transferred to (from) Plan | $ 635 | |||||
Lump Sum Distributions Paid | $ 30 | |||||
Components of net periodic benefit cost: | ||||||
Service cost | 3.7 | 4.3 | 11 | 13.3 | ||
Interest cost | 9.3 | 14.6 | 28.2 | 45 | ||
Expected return on plan assets | (10) | (20) | (30.3) | (61.8) | ||
Amortization of prior service cost | 0.5 | 0.8 | 1.3 | 2.2 | ||
Amortization of net actuarial loss | 4.4 | 9 | 13.3 | 28 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 10.2 | 3.5 | 10.6 | 221 | ||
Net periodic benefit cost | 18.1 | 12.2 | 34.1 | 247.7 | ||
Professional Fees | $ 2.2 | |||||
The Timken Company Canadian Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of Canadian Timken retirees | 135 | |||||
Pension obligations transferred | 15 | |||||
Defined Benefit Plan, Assets Transferred to (from) Plan | 15 | |||||
Lump Sum Distributions Paid | $ 6.8 | |||||
Components of net periodic benefit cost: | ||||||
Professional Fees | 1.3 | |||||
Other Postretirement Benefit Plan [Member] | ||||||
Components of net periodic benefit cost: | ||||||
Service cost | 0.1 | 0.1 | 0.3 | 0.3 | ||
Interest cost | 2.7 | 2.7 | 8.2 | 8.1 | ||
Expected return on plan assets | (1.6) | (1.8) | (4.9) | (5.3) | ||
Amortization of prior service cost | 0.2 | 0.2 | 0.7 | 0.6 | ||
Net periodic benefit cost | 1.4 | 1.3 | 4.3 | 3.8 | ||
Pension Plan, Defined Benefit [Member] | ||||||
Components of net periodic benefit cost: | ||||||
Service cost | 3.3 | 3.9 | 9.9 | 11.5 | ||
Interest cost | 6.7 | 11.4 | 20 | 35.6 | ||
Expected return on plan assets | (7.4) | (15.8) | (22.3) | (49.2) | ||
Amortization of prior service cost | 0.4 | 0.7 | 1.2 | 2.1 | ||
Amortization of net actuarial loss | 3.6 | 7.8 | 10.9 | 24.1 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 3.5 | 0 | 219.9 | ||
Net periodic benefit cost | 6.6 | 11.5 | 19.7 | 244 | ||
Foreign Pension Plan, Defined Benefit [Member] | ||||||
Components of net periodic benefit cost: | ||||||
Service cost | 0.4 | 0.4 | 1.1 | 1.8 | ||
Interest cost | 2.6 | 3.2 | 8.2 | 9.4 | ||
Expected return on plan assets | (2.6) | (4.2) | (8) | (12.6) | ||
Amortization of prior service cost | 0.1 | 0.1 | 0.1 | 0.1 | ||
Amortization of net actuarial loss | 0.8 | 1.2 | 2.4 | 3.9 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 10.2 | 0 | 10.6 | 1.1 | ||
Net periodic benefit cost | $ 11.5 | $ 0.7 | $ 14.4 | $ 3.7 | ||
Timken-Latrobe-MPB-Torrington Retirement Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of U.S. Timken retirees | 5,000 |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 3.7 | $ 4.3 | $ 11 | $ 13.3 |
Interest cost | 9.3 | 14.6 | 28.2 | 45 |
Expected return on plan assets | (10) | (20) | (30.3) | (61.8) |
Amortization of prior service credit | 0.5 | 0.8 | 1.3 | 2.2 |
Net periodic benefit cost | 18.1 | 12.2 | 34.1 | 247.7 |
Defined Benefit Plan, Future Amortization of Gain (Loss) | (4.4) | (9) | (13.3) | (28) |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 10.2 | 3.5 | 10.6 | 221 |
Pension Plan, Defined Benefit [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 3.3 | 3.9 | 9.9 | 11.5 |
Interest cost | 6.7 | 11.4 | 20 | 35.6 |
Expected return on plan assets | (7.4) | (15.8) | (22.3) | (49.2) |
Amortization of prior service credit | 0.4 | 0.7 | 1.2 | 2.1 |
Net periodic benefit cost | 6.6 | 11.5 | 19.7 | 244 |
Defined Benefit Plan, Future Amortization of Gain (Loss) | (3.6) | (7.8) | (10.9) | (24.1) |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 0 | 3.5 | 0 | 219.9 |
Foreign Pension Plan, Defined Benefit [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 0.4 | 0.4 | 1.1 | 1.8 |
Interest cost | 2.6 | 3.2 | 8.2 | 9.4 |
Expected return on plan assets | (2.6) | (4.2) | (8) | (12.6) |
Amortization of prior service credit | 0.1 | 0.1 | 0.1 | 0.1 |
Net periodic benefit cost | 11.5 | 0.7 | 14.4 | 3.7 |
Defined Benefit Plan, Future Amortization of Gain (Loss) | (0.8) | (1.2) | (2.4) | (3.9) |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 10.2 | 0 | 10.6 | 1.1 |
Postretirement Benefit Plans [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 0.1 | 0.1 | 0.3 | 0.3 |
Interest cost | 2.7 | 2.7 | 8.2 | 8.1 |
Expected return on plan assets | (1.6) | (1.8) | (4.9) | (5.3) |
Amortization of prior service credit | 0.2 | 0.2 | 0.7 | 0.6 |
Defined Benefit Plan, Amortization of Gains (Losses) | 0 | 0.1 | 0 | 0.1 |
Net periodic benefit cost | $ 1.4 | $ 1.3 | $ 4.3 | $ 3.8 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Provision (benefit) for income taxes | $ 13.5 | $ (6.6) | $ 61.1 | $ 1 |
Effective tax rate | 39.10% | (11.40%) | 32.20% | (3.20%) |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Excluding discrete items [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 39.10% | (11.40%) | 32.20% | (3.20%) |
Provision (benefit) for income taxes | $ (13.5) | $ 6.6 | $ (61.1) | $ (1) |
Income (Loss) Before Income Taxes | (34.5) | $ (57.9) | $ (189.9) | $ 31.6 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | ||
Reclassification income taxes payable to other non-current assets | $ 18.6 | |||
excluding discrete items [Member] | ||||
Excluding discrete items [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Percent | 31.60% | 3.20% |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets Held-for-sale, Not Part of Disposal Group, Other | $ 0.2 | $ 0.2 | $ 5.8 | |||
Impairment of Long-Lived Assets to be Disposed of | (0.2) | (3) | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | 2.8 | |||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Cash and cash equivalents | 16.4 | 16.4 | $ 19.4 | |||
Restricted cash | 2.7 | 2.7 | 0.2 | |||
Short-term investments | 0.4 | 0.4 | 0.8 | |||
Foreign currency hedges | 2.8 | 2.8 | 8.2 | |||
Foreign currency hedges | 2.3 | 2.3 | 0.4 | |||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 6.1 | 6.1 | 0.8 | |||
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | (3.6) | (0.3) | ||||
Long Lived Assets Held and Used Fair Value | 2.5 | 2.5 | 0.5 | |||
Fair Value, Measurements, Recurring [Member] | ||||||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Cash and cash equivalents | 112.6 | 112.6 | 110.2 | |||
Restricted cash | 2.7 | 2.7 | 0.2 | |||
Short-term investments | 7 | 7 | 8.9 | |||
Foreign currency hedges | 2.8 | 2.8 | 8.2 | |||
Total Assets | 141.9 | 141.9 | 147.7 | |||
Foreign currency hedges | 2.3 | 2.3 | 0.4 | |||
Total Liabilities | 2.3 | 2.3 | 0.4 | |||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||||||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Cash and cash equivalents | 112.6 | 112.6 | 110.2 | |||
Restricted cash | 2.7 | 2.7 | 0.2 | |||
Short-term investments | 0 | 0 | 0 | |||
Foreign currency hedges | 0 | 0 | 0 | |||
Total Assets | 115.3 | 115.3 | 110.4 | |||
Foreign currency hedges | 0 | 0 | 0 | |||
Total Liabilities | 0 | 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 | 0 | 0 | 0 | |||
Restricted cash | 0 | 0 | ||||
Restricted Cash and Cash Equivalents | 0 | |||||
Short-term investments | 7 | 7 | 8.9 | |||
Foreign currency hedges | 2.8 | 2.8 | 8.2 | |||
Total Assets | 9.8 | 9.8 | 17.1 | |||
Foreign currency hedges | 2.3 | 2.3 | 0.4 | |||
Total Liabilities | 2.3 | 2.3 | 0.4 | |||
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 | 0 | |||
Restricted cash | 0 | 0 | 0 | |||
Short-term investments | 0 | 0 | 0 | |||
Foreign currency hedges | 0 | 0 | 0 | |||
Total Assets | 0 | 0 | 0 | |||
Foreign currency hedges | 0 | 0 | 0 | |||
Total Liabilities | 0 | 0 | $ 0 | |||
Land [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets Held-for-sale, Not Part of Disposal Group, Other | 0.2 | 0.2 | 5.8 | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 0 | |||||
Repair Business [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment of Long-Lived Assets to be Disposed of | 0.2 | 3 | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | 2.8 | $ 2.8 | ||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | (3) | |||||
Altavista Bearing Plant [Member] [Member] | ||||||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 5.6 | 5.6 | ||||
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | (0.7) | (2.4) | ||||
Long Lived Assets Held and Used Fair Value | 2.5 | 2.5 | $ 3.2 | |||
Property, Plant and Equipment [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0.5 | 0.5 | ||||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.8 | 0.8 | 0.8 | |||
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | (0.3) | 0.3 | ||||
Long Lived Assets Held and Used Fair Value | $ 0.5 | |||||
Property, Plant and Equipment [Member] | Benoni [Member] | ||||||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.5 | 0.5 | ||||
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | 0.5 | |||||
Long Lived Assets Held and Used Fair Value | 0 | 0 | ||||
Property, Plant and Equipment [Member] | Altavista Bearing Plant [Member] [Member] | ||||||
Assets and Liabilities Measured at fair value on a recurring basis | ||||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | $ 5.6 | 5.6 | ||||
Long Lived Assets Held and Used Fair Value Adjustment - Fair Value Disclosure | $ 3.1 |
Fair Value (Details Textual)
Fair Value (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Lived Assets Held and Used Fair Value | $ 2.5 | $ 2.5 | $ 0.5 | |||
Long-term Debt, Fair Value | 547.4 | 547.4 | $ 521.5 | |||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | 2.8 | |||
Long-term Fixed-rate Debt, Carrying Value | 507.3 | 507.3 | 519.2 | |||
Impairment of Long-Lived Assets to be Disposed of | 0.2 | 3 | ||||
Impairment of Long-Lived Assets Held-for-use | 3.6 | 0.3 | ||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 6.1 | 6.1 | 0.8 | |||
Land [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | $ 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 | 5.8 | |||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | 2.8 | $ 2.8 | ||
Impairment of Long-Lived Assets to be Disposed of | (0.2) | (3) | ||||
Impairment of Long-Lived Assets Held-for-use | 3 | |||||
Altavista Bearing Plant [Member] [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Long Lived Assets Held and Used Fair Value | 2.5 | 2.5 | $ 3.2 | |||
Impairment of Long-Lived Assets Held-for-use | 0.7 | 2.4 | ||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 5.6 | 5.6 | ||||
Benoni [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Impairment of Long-Lived Assets Held-for-use | 0.5 | |||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.5 | 0.5 | ||||
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 | 0.5 | |||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0.5 | 0.5 | ||||
Impairment of Long-Lived Assets Held-for-use | 0.3 | (0.3) | ||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.8 | 0.8 | $ 0.8 | |||
Fair Value, Measurements, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Assets, Fair Value Disclosure, Recurring | 141.9 | 141.9 | $ 147.7 | |||
Benoni [Member] | 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 | 0 | 0 | ||||
Impairment of Long-Lived Assets Held-for-use | (0.5) | |||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | $ 0.5 | $ 0.5 |
Derivatives and Hedging Activ71
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Forward Currency Forward Contracts [Abstract] | |||||
Unrealized Gain on Foreign Currency Derivatives, before Tax | $ (0.5) | $ 2.1 | $ (2.5) | $ 2.1 | |
Unrealized Gain (Loss) on Price Risk Cash Flow Derivatives, before Tax | (0.5) | 2.1 | (2.5) | 2.1 | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (0.4) | 0.3 | 0.4 | 1 | |
Foreign Currency Fair Value Hedge Asset at Fair Value | 0.3 | 0.3 | $ 2.2 | ||
Derivative, Notional Amount | 247.9 | 247.9 | 235.7 | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (0.2) | (16.3) | (4.5) | 9.8 | |
Foreign Currency Fair Value Hedge Liability at Fair Value | 1.1 | 1.1 | 0.2 | ||
Derivative Instruments in Hedges, Assets, at Fair Value | 0.3 | 0.3 | 2.2 | ||
Derivative Instruments in Hedges, Liabilities, at Fair Value | 1.1 | 1.1 | 0.2 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 2.5 | 2.5 | 6 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 1.2 | 1.2 | 0.2 | ||
Derivative Asset | 2.8 | 2.8 | 8.2 | ||
Derivative Liability | 2.3 | 2.3 | $ 0.4 | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.5) | 0.2 | 0.1 | 0.7 | |
Derivative Instruments Not Designated as Hedging Instruments, Gain | (0.2) | (16.3) | (4.5) | 9.8 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ (0.1) | $ (0.1) | $ (0.3) | $ (0.3) |
Continued Dumping and Subsidy72
Continued Dumping and Subsidy Act (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jul. 01, 2016 | Apr. 01, 2016 | |
CDSOA [Abstract] | ||||||
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | $ (200,000) | $ 0 | $ 53,600,000 | $ 0 | ||
Continued Dumping and Subsidy Offset Act, distributions | $ 6,300,000 | $ 48,100,000 |