Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2017shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
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 | 77,617,122 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 771.4 | $ 657.4 | $ 2,225.8 | $ 2,015 |
Cost of products sold | 554.4 | 487.7 | 1,626.5 | 1,477.7 |
Gross Profit | 217 | 169.7 | 599.3 | 537.3 |
Selling, general and administrative expenses | 134 | 107.2 | 377.4 | 331.3 |
Impairment and restructuring charges | 1.3 | 5.3 | 3.8 | 18.7 |
Pension Settlement Charges | 0 | 0.1 | 0 | 1.3 |
Operating Income (Loss) | 81.7 | 57.1 | 218.1 | 186 |
Interest expense | (10.1) | (8) | (26.5) | (25.1) |
Investment Income, Interest | 0.7 | 0.4 | 2 | 1.1 |
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | 0 | (0.2) | 0 | 53.6 |
Other (expense) income, net | 2.9 | (0.1) | 9.1 | (1.8) |
Income (Loss) Before Income Taxes | 75.2 | 49.2 | 202.7 | 213.8 |
Provision (benefit) for income taxes | 21.1 | 15.2 | 28.5 | 65.8 |
Net Income | 54.1 | 34 | 174.2 | 148 |
Net (loss) income attributable to noncontrolling interest | 0.6 | 0.4 | 0 | 0.3 |
Net Income (loss) attributable to The Timken Company | $ 53.5 | $ 33.6 | $ 174.2 | $ 147.7 |
Net Income per Common Share attributable to The Timken Company Common Shareholders | ||||
Basic earnings per share | $ 0.69 | $ 0.43 | $ 2.24 | $ 1.87 |
Diluted earnings per share | 0.68 | 0.43 | 2.21 | 1.86 |
Common Stock, Dividends, Per Share, Declared | $ 0.27 | $ 0.26 | $ 0.80 | $ 0.78 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 54.1 | $ 34 | $ 174.2 | $ 148 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 10.9 | 3.7 | 42.8 | 5.2 |
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 0.1 | 0.4 | 0.2 | 1.2 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (2) | 0 | (4.2) | (1.6) |
Other comprehensive income | 9 | 4.1 | 38.8 | 4.8 |
Comprehensive Income | 63.1 | 38.1 | 213 | 152.8 |
Less: comprehensive (loss) income attributable to noncontrolling interest | 0.5 | 1 | 1.9 | 2.2 |
Comprehensive Income attributable to The Timken Company | $ 62.6 | $ 37.1 | $ 211.1 | $ 150.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Current Assets | |||
Cash and cash equivalents | $ 137.2 | $ 137.2 | $ 148.8 |
Restricted cash | 3.3 | 3.3 | 2.7 |
Accounts receivable, less allowances (2017 – $19.2 million; 2016 – $20.2 million) | 542.2 | 542.2 | 438 |
Inventories, net | 687.5 | 687.5 | 553.7 |
Net Income (Loss) Attributable to Parent | 53.5 | 174.2 | |
Deferred charges and prepaid expenses | 39.9 | 39.9 | 20.3 |
Other current assets | 64.2 | 64.2 | 48.4 |
Total Current Assets | 1,474.3 | 1,474.3 | 1,211.9 |
Property, Plant and Equipment, net | 842.2 | 842.2 | 804.4 |
Other Assets | |||
Goodwill | 510.3 | 510.3 | 357.5 |
Non-current pension assets | 31.6 | 31.6 | 32.1 |
Other intangible assets | 428.9 | 428.9 | 271 |
Deferred income taxes | 47.9 | 47.9 | 51.4 |
Other Assets, Noncurrent | 28.4 | 28.4 | 34.9 |
Total Other Assets | 1,047.1 | 1,047.1 | 746.9 |
Total Assets | 3,363.6 | 3,363.6 | 2,763.2 |
Current Liabilities | |||
Short-term debt | 41.1 | 41.1 | 19.2 |
Current portion of long-term debt | 5 | 5 | 5 |
Accounts payable, trade | 248.1 | 248.1 | 176.2 |
Salaries, wages and benefits | 112.2 | 112.2 | 85.9 |
Income taxes payable | 7.4 | 7.4 | 16.9 |
Other current liabilities | 154.9 | 154.9 | 149.5 |
Total Current Liabilities | 568.7 | 568.7 | 452.7 |
Non-Current Liabilities | |||
Long-term debt | 959.8 | 959.8 | 635 |
Accrued pension cost | 160.3 | 160.3 | 154.7 |
Accrued postretirement benefits cost | 126.7 | 126.7 | 131.5 |
Deferred income taxes | 44.9 | 44.9 | 3.9 |
Other non-current liabilities | 47.3 | 47.3 | 74.5 |
Total Non-Current Liabilities | 1,339 | 1,339 | 999.6 |
Shareholders' Equity | |||
Class I and II Serial Preferred Stock, without par value: Authorized – 10,000,000 shares each class, none issued | 0 | 0 | 0 |
Common Stock, Value, Outstanding | 53.1 | 53.1 | 53.1 |
Other paid-in capital | 898.2 | 898.2 | 906.9 |
Earnings invested in the business | 1,400.2 | 1,400.2 | 1,289.3 |
Accumulated other comprehensive loss | (41) | (41) | (77.9) |
Treasury shares at cost (2016 - 19,152,333 shares; 2015 - 18,112,047 shares) | (887.5) | (887.5) | (891.7) |
Total Shareholders' Equity | 1,423 | 1,423 | 1,279.7 |
Noncontrolling Interest | 32.9 | 32.9 | 31.2 |
Total Equity | 1,455.9 | 1,455.9 | 1,310.9 |
Total Liabilities and Shareholders' Equity | $ 3,363.6 | $ 3,363.6 | $ 2,763.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ / shares in Millions, $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 20.5 | $ 20.2 |
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 | 20,758,013 | 20,925,492 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Shares Surrendered for Taxes | $ 10.8 | $ 1.6 |
Operating Activities | ||
Net Income (loss) attributable to The Timken Company | 174.2 | 147.7 |
Net (loss) income attributable to noncontrolling interest | 0 | 0.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 102.5 | 98.3 |
Impairment charges | 0 | 3.8 |
Loss on sale of assets | (2.6) | 0.8 |
Deferred income tax provision | 7.5 | 4.6 |
Stock-based compensation expense | 18.2 | 10.9 |
Pension and other postretirement expense | 12.6 | 14.5 |
Pension contributions and other postretirement benefit payments | (16.3) | (22.3) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (61.6) | 12.2 |
Inventories | (85.4) | (13.6) |
Accounts payable, trade | 55.7 | 15 |
Other accrued expenses | 15.9 | (17.5) |
Income taxes | (59.6) | 22.9 |
Other, net | (18.2) | 1.1 |
Net Cash Provided by Operating Activities | 142.9 | 278.7 |
Investing Activities | ||
Capital expenditures | (62.5) | (84.4) |
Acquisitions, net of cash received | 347.2 | 62.8 |
Proceeds from disposals of property, plant and equipment | 6.8 | 1.5 |
Common Stock, Value, Outstanding | (4.2) | 2.1 |
Other | (0.3) | 0.3 |
Net Cash Used by Investing Activities | (407.4) | (143.3) |
Financing Activities | ||
Cash dividends paid to shareholders | (62.4) | (61.4) |
Purchase of treasury shares | (41) | (83.3) |
Net proceeds from common share activity | 27.7 | 0.7 |
Proceeds from Issuance of Long-term Debt | 862.7 | 275.5 |
Proceeds from Accounts Receivable Securitization | 51.2 | 50 |
Repayments of Accounts Receivable Securitization | 25.3 | 30.1 |
Payments on long-term debt | (574.4) | (290.1) |
Payments of Financing Costs | 1.1 | 0 |
Short-term debt activity, net | 12.8 | (1.4) |
Increase (Decrease) in Restricted Cash | (0.5) | (2.5) |
Proceeds from (Payments for) Other Financing Activities | (2.6) | 4.5 |
Net Cash Used by Financing Activities | 236.3 | (139.7) |
Effect of exchange rate changes on cash | 16.6 | 3.7 |
(Decrease) increase In Cash and Cash Equivalents | (11.6) | (0.6) |
Cash and cash equivalents beginning of period | 148.8 | 129.6 |
Cash and cash equivalents end of period | $ 137.2 | $ 129 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 |
Change in Accounting Principles
Change in Accounting Principles (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 2 - Change in Accounting Principles Effective January 1, 2017, the Company voluntarily changed its accounting principles for recognizing actuarial gains and losses and expected returns on plan assets for its defined benefit pension and other postretirement benefit plans, with retrospective application to prior periods. Prior to 2017, the Company amortized, as a component of pension and other postretirement expense, unrecognized actuarial gains and losses (included within accumulated other comprehensive income (loss)) over the average remaining service period of active plan participants expected to receive benefits under the plan, or average remaining life expectancy of inactive plan participants when all or almost all of individual plan participants were inactive. The Company also historically calculated the market-related value of plan assets based on a five-year market adjustment. Under the new principles, actuarial gains and losses will be immediately recognized through net periodic benefit cost in the Statement of Income, upon the annual remeasurement in the fourth quarter, or on an interim basis if specific events trigger a remeasurement. In addition, the Company has changed its accounting policy for measuring the market-related value of plan assets from a calculated amount (based on a five-year smoothing of asset returns) to fair value. The Company believes these changes are preferable as they result in an accelerated recognition of actuarial gains and losses and changes in fair value of plan assets in its Consolidated Statement of Income, which provides greater transparency and better aligns with fair value principles by fully reflecting the impact of interest rate and economic changes on the Company's pension and other postretirement benefit liabilities and assets in the Company's operating results in the year in which the gains and losses are incurred. As of January 1, 2017, the cumulative effect of the change in accounting principles resulted in a decrease of $239 million in earnings invested in the business and a corresponding increase of $244 million in accumulated other comprehensive loss that was partially offset by the net impact of the direct effects of these changes on inventory and deferred taxes of $5 million . The following tables reflect the changes to financial statement line items as a result of the change in accounting principles for the periods presented in the accompanying unaudited consolidated financial statements: Consolidated Statements of Income: Three Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 556.7 $ 554.4 $ (2.3 ) $ 489.9 $ 487.7 $ (2.2 ) Gross profit 214.7 217.0 2.3 167.5 169.7 2.2 Selling, general and administrative expense 136.8 134.0 (2.8 ) 109.5 107.2 (2.3 ) Pension settlement expenses 3.9 — (3.9 ) 10.3 0.1 (10.2 ) Operating income 72.7 81.7 9.0 42.4 57.1 14.7 Income before income taxes 66.2 75.2 9.0 34.5 49.2 14.7 Provision for income taxes 18.0 21.1 3.1 13.5 15.2 1.7 Net income 48.2 54.1 5.9 21.0 34.0 13.0 Net income attributable to The Timken Company $ 47.6 $ 53.5 $ 5.9 $ 20.6 $ 33.6 $ 13.0 Basic earnings per share $ 0.61 $ 0.69 $ 0.08 $ 0.26 $ 0.43 $ 0.17 Diluted earnings per share $ 0.60 $ 0.68 $ 0.08 $ 0.26 $ 0.43 $ 0.17 Consolidated Statements of Income: Nine Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 1,630.9 $ 1,626.5 $ (4.4 ) $ 1,484.3 $ 1,477.7 $ (6.6 ) Gross profit 594.9 599.3 4.4 530.7 537.3 6.6 Selling, general and administrative expense 383.8 377.4 (6.4 ) 338.0 331.3 (6.7 ) Pension settlement expenses 15.7 — (15.7 ) 11.9 1.3 (10.6 ) Operating income 191.6 218.1 26.5 162.1 186.0 23.9 Income before income taxes 176.2 202.7 26.5 189.9 213.8 23.9 Provision for income taxes 19.3 28.5 9.2 61.1 65.8 4.7 Net income 156.9 174.2 17.3 128.8 148.0 19.2 Net income attributable to The Timken Company $ 156.9 $ 174.2 $ 17.3 $ 128.5 $ 147.7 $ 19.2 Basic earnings per share $ 2.02 $ 2.24 $ 0.22 $ 1.63 $ 1.87 $ 0.24 Diluted earnings per share $ 1.99 $ 2.21 $ 0.22 $ 1.62 $ 1.86 $ 0.24 Consolidated Statements of Comprehensive Income: Three Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Net Income $ 48.2 $ 54.1 $ 5.9 $ 21.0 $ 34.0 $ 13.0 Foreign currency translation adjustments 10.9 10.9 — 2.2 3.7 1.5 Pension and postretirement liability adjustment 6.0 0.1 (5.9 ) 15.0 0.4 (14.6 ) Other comprehensive income, net of tax 14.9 9.0 (5.9 ) 17.2 4.1 (13.1 ) Comprehensive Income, net of tax 63.1 63.1 — 38.2 38.1 (0.1 ) Less: comprehensive income attributable to noncontrolling interest 0.5 0.5 — 0.9 1.0 0.1 Comprehensive income attributable to The Timken Company $ 62.6 $ 62.6 $ — $ 37.3 $ 37.1 $ (0.2 ) Nine Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Net Income $ 156.9 $ 174.2 $ 17.3 $ 128.8 $ 148.0 $ 19.2 Foreign currency translation adjustments 42.8 42.8 — (1.4 ) 5.2 6.6 Pension and postretirement liability adjustment 17.5 0.2 (17.3 ) 27.0 1.2 (25.8 ) Other comprehensive income, net of tax 56.1 38.8 (17.3 ) 24.0 4.8 (19.2 ) Comprehensive Income, net of tax 213.0 213.0 — 152.8 152.8 — Less: comprehensive income attributable to noncontrolling interest 1.9 1.9 — 2.1 2.2 0.1 Comprehensive income attributable to The Timken Company $ 211.1 $ 211.1 $ — $ 150.7 $ 150.6 $ (0.1 ) Consolidated Balance Sheets: September 30, 2017 December 31, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Inventories, net $ 679.6 $ 687.5 $ 7.9 $ 545.8 $ 553.7 $ 7.9 Total current assets 1,466.4 1,474.3 7.9 1,204.0 1,211.9 7.9 Deferred income taxes 50.9 47.9 (3.0 ) 54.4 51.4 (3.0 ) Total other assets 1,050.1 1,047.1 (3.0 ) 749.9 746.9 (3.0 ) Total assets 3,358.7 3,363.6 4.9 2,758.3 2,763.2 4.9 Earnings invested in the business 1,622.2 1,400.2 (222.0 ) 1,528.6 1,289.3 (239.3 ) Accumulated other comprehensive loss (267.8 ) (41.0 ) 226.8 (322.0 ) (77.9 ) 244.1 Total shareholders' equity 1,418.2 1,423.0 4.8 1,274.9 1,279.7 4.8 Noncontrolling interest 32.8 32.9 0.1 31.1 31.2 0.1 Total equity 1,451.0 1,455.9 4.9 1,306.0 1,310.9 4.9 Total liabilities and shareholders' equity $ 3,358.7 $ 3,363.6 $ 4.9 $ 2,758.3 $ 2,763.2 $ 4.9 Consolidated Statements of Cash Flows: Nine Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Net income attributable to The Timken Company $ 156.9 $ 174.2 $ 17.3 $ 128.5 $ 147.7 $ 19.2 Deferred income tax (benefit) provision (1.7 ) 7.5 9.2 (0.1 ) 4.6 4.7 Pension and other postretirement expense 39.1 12.6 (26.5 ) 38.4 14.5 (23.9 ) |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 4 - Acquisitions During the first nine months of 2017, the Company completed three acquisitions. On July 3, 2017 , the Company completed the acquisition of Groeneveld Group ("Groeneveld"), a leading provider of automatic lubrication solutions used in on- and off-highway applications. On May 5, 2017 , the Company completed the acquisition of the assets of PT Tech, Inc. ("PT Tech"), a manufacturer of engineered clutches, brakes, hydraulic power take-off units and other torque management devices used in mining, aggregate, wood recycling and metals industries. On April 3, 2017 , the Company completed the acquisition of Torsion Control Products, Inc. ("Torsion Control Products"), a manufacturer of engineered torsional couplings used in the construction, agriculture and mining industries. Aggregate sales for these companies for the most recent twelve months prior to their respective acquisitions totaled approximately $146.2 million . The total purchase price for these acquisitions was $346.6 million , net of $35.0 million cash received. The Company incurred acquisition-related costs of $3.6 million to complete these acquisitions. The 2017 acquisitions are subject to post-closing purchase price allocation adjustments. Based on markets and customers served, substantially all of the results for Groeneveld, PT Tech and Torsion Control Products are reported in the Mobile Industries segment. The following table presents the initial purchase price allocation for acquisitions in 2017: Initial Purchase Price Allocation Assets: Accounts receivable, net $ 27.6 Inventories, net 29.1 Other current assets 4.7 Property, plant and equipment, net 31.6 Goodwill 147.6 Other intangible assets 175.3 Other non-current assets 1.9 Total assets acquired $ 417.8 Liabilities: Accounts payable, trade $ 9.5 Salaries, wages and benefits 5.8 Other current liabilities 8.2 Short-term debt 1.0 Long-term debt 2.0 Deferred income taxes 42.4 Other non-current liabilities 2.3 Total liabilities assumed $ 71.2 Net assets acquired $ 346.6 The following table summarizes the initial purchase price allocation for identifiable intangible assets acquired in 2017: Initial Purchase Weighted - Trade names (indefinite life) $ 33.4 Indefinite Trade names (finite life) 2.2 13 years Technology and know-how 29.9 16 years Customer relationships 108.2 17 years Other 0.2 5 years Capitalized software 1.4 3 years Total intangible assets $ 175.3 On July 5, 2017 , the Company announced that the Company's majority-owned subsidiary, Timken India Ltd. ("Timken India"), entered into a definitive agreement to acquire ABC Bearings Limited ("ABC Bearings"). Timken India is a public limited company listed on the National Stock Exchange of India Limited and BSE Limited. ABC Bearings is a manufacturer of tapered, cylindrical and spherical roller bearings and slewing rings in India. The transaction is structured as a merger of ABC Bearings into Timken India, whereby shareholders of ABC Bearings will receive shares of Timken India as consideration. The transaction is subject to receipt of various approvals in India, which are expected to be completed in the first half of 2018 . ABC Bearings, located in Mumbai, India, operates primarily out of manufacturing facilities in Bharuch, Gujarat and Dehradun, Uttarakhand and had annual sales of approximately $29 million for the twelve months ended March 31, 2017. During 2016 , the Company completed two acquisitions. On October 31, 2016 , the Company completed the acquisition of EDT Corp. ("EDT"), a manufacturer of polymer housed units and stainless steel ball bearings used primarily in the food and beverage industry. On July 8, 2016 , the Company completed the acquisition of Lovejoy Inc. ("Lovejoy"), a manufacturer of premium industrial couplings and universal joints. In January 2017, the Company paid a net purchase price adjustment of $0.6 million in connection with the EDT acquisition, resulting in an adjustment to goodwill. During the second quarter of 2017, the Company re-evaluated the fair value of certain contingent liabilities assumed in the Lovejoy acquisition, resulting in adjustments to other current assets, goodwill, other current liabilities and other non-current liabilities. The following table presents the final purchase price allocation for both the Lovejoy and the EDT acquisitions: Initial Purchase Price Allocation Adjustment Final Purchase Price Allocation Assets: Accounts receivable, net $ 8.4 $ 8.4 Inventories, net 17.8 17.8 Other current assets 5.3 (0.2 ) 5.1 Property, plant and equipment, net 16.5 16.5 Goodwill 29.9 (1.1 ) 28.8 Other intangible assets 27.9 27.9 Other non-current assets 0.1 0.1 Total assets acquired $ 105.9 $ (1.3 ) $ 104.6 Liabilities: Accounts payable, trade $ 8.1 $ 8.1 Salaries, wages and benefits 1.3 1.3 Other current liabilities 4.4 (0.6 ) 3.8 Long-term debt 2.2 2.2 Deferred taxes 10.4 10.4 Other non-current liabilities 7.6 (1.3 ) 6.3 Total liabilities assumed $ 34.0 $ (1.9 ) $ 32.1 Net assets acquired $ 71.9 $ 0.6 $ 72.5 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Description of New Adopted Accounting Pronouncements | Note 3 - Recent Accounting Pronouncements New Accounting Guidance Adopted: In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." 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 requirements to calculate a “windfall pool”; 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; 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; and e. amending the assumed proceeds from applying the treasury stock method when computing earnings per share to exclude the amount of excess tax benefits that would be recognized in additional paid-in capital. On January 1, 2017, the Company adopted the provisions of ASU 2016-09. The presentation of the Consolidated Statement of Cash Flows for shares surrendered by employees to meet the minimum statutory withholding requirement was applied retrospectively. As a result of the adoption of ASU 2016-09, $1.6 million was reclassified from the other accrued expenses line in the operating activities section of the Consolidated Statement of Cash Flows to the shares surrendered for taxes line in the financing activities section for the first nine months of 2016 . In addition, the adoption of ASU 2016-09 resulted in the Company making an accounting policy election to change how it will recognize the number of stock awards that will ultimately vest. In the past, the Company applied a forfeiture rate to shares granted. With the adoption of ASU 2016-09, the Company will recognize forfeitures as they occur. This change resulted in the Company making a cumulative effect change to retained earnings of $0.9 million . For additional information, refer to Note 10 - Equity for the disclosure of the cumulative effect change. In addition, the Company began recording the tax effects associated with stock-based compensation through the income statement on a prospective basis, which resulted in a tax benefit of $1.9 million for the first nine months of 2017. Finally, the Company adjusted dilutive shares to remove the excess tax benefits from the calculation of earnings per share on a prospective basis. The revised calculation is more dilutive, but it did not change earnings per share for prior years. In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 requires inventory to be measured at the lower of cost and net realizable value, which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. Under existing guidance, net realizable value is one of several acceptable measures of market value that could be used to measure inventory at the lower of cost or market and, as such, the new guidance reduces the complexity in the measurement. On January 1, 2017, the Company adopted the provisions of ASU 2015-11 on a prospective basis. The adoption of ASU 2015-11 did not have a material impact on the Company's results of operations or financial condition. For our disclosures related to inventories, refer to Note 5 - Inventories . New Accounting Guidance Issued and Not Yet Adopted: In August 2017, the FASB issued ASU 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities", which impacts both designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. ASU 2017-12 amends and clarifies the requirements to qualify for hedge accounting, removes the requirement to recognize changes in fair value from certain hedges in current earnings, and specifies the presentation of changes in fair value in the income statement for all hedging instruments. ASU 2017-02 is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including in any interim period for which financial statements have not yet been issued, but the effect of adoption is required to be reflected as of the beginning of the fiscal year of adoption. The Company is currently evaluating the effect that the adoption of ASU 2017-12 will have on the Company's results of operations and financial condition. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting." ASU 2017-09 provides clarity on which changes to the terms or conditions of share-based payment awards require entities to apply the modification accounting provisions required in Topic 718. ASU 2017-09 is effective for public companies for annual reporting periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The Company does not expect that the adoption of ASU 2017-09 will have a material impact on the Company's results of operations and financial condition, as the Company does not anticipate future modifications of share-based payment awards. In March 2017, the FASB issued ASU 2017-07, “Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” ASU 2017-07 impacts where the components of net benefit cost are presented within an entity’s income statement. Service cost will be included in other employee compensation costs within operating income and is the only component that may be capitalized when applicable. The other components of net periodic benefit cost will be presented separately outside of operating income. ASU 2017-07 is effective for public companies for annual reporting periods beginning after December 15, 2017 and interim periods within that reporting period. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements have not been issued or made available for issuance. Our initial assessment has indicated that the adoption of ASU 2017-07 will result in the reclassification of certain amounts out of "Cost of products sold" and "Selling, general and administrative ("SG&A") expenses" into "Other expense, net" in the Consolidated Statement of Income. Also, the adoption of this standard will result in the reclassification of certain amounts from "Cost of products sold" and "SG&A expenses" for the Mobile Industries and Process Industries segments into Corporate "Other expense, net". The amounts impacted may be material. The Company is currently performing further analysis on the effect that the adoption of ASU 2017-07 will have on the Company's results of operations. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Prior to the issuance of the new accounting guidance, entities first assessed qualitative factors to determine whether a two-step goodwill impairment test was necessary. When entities bypassed or failed the qualitative analysis, they were required to apply a two-step goodwill impairment test. Step 1 compared a reporting unit’s fair value to its carrying amount to determine if there is a potential impairment. If the carrying amount of a reporting unit exceeds its fair value, Step 2 was required to be completed. Step 2 involved determining the implied fair value of goodwill and comparing it to the carrying amount of that goodwill to measure the impairment loss, if any. ASU 2017-04 eliminates Step 2 of the current goodwill impairment test. ASU 2017-04 will require that a goodwill impairment loss be measured at the amount by which a reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. ASU 2017-04 is effective for public companies for years beginning after December 15, 2019, with early adoption permitted, and must be applied prospectively. The Company is currently evaluating the effect that the adoption of ASU 2017-04 will have on the Company's results of operations and financial condition. 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 for public companies in fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently evaluating the effect that the adoption of ASU 2016-13 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 the adoption of 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 public companies for annual periods beginning after December 15, 2017. Although early adoption is permitted, the Company intends to adopt the new accounting standard effective January 1, 2018. The two permitted transition methods under the new standard are: (1) the full retrospective method, in which case the standard would be applied to each prior reporting period presented, subject to allowable practical expedients and the cumulative effect of applying the standard would be recognized at the earliest period shown and (2) the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application accompanied by additional disclosures comparing the current period results presented under the new standard to the prior periods presented under the current revenue recognition standards. The Company plans to use the modified retrospective method. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 - Inventories The components of inventories at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, Manufacturing supplies $ 29.5 $ 28.2 Raw materials 85.7 54.9 Work in process 238.4 182.9 Finished products 367.4 308.8 Subtotal $ 721.0 $ 574.8 Allowance for obsolete and surplus inventory (33.5 ) (21.1 ) Total Inventories, net $ 687.5 $ 553.7 Inventories are valued at the lower of cost or market, with approximately 55% valued by the first-in, first-out ("FIFO") method and the remaining 45% 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, 2017 and December 31, 2016 were $167.4 million and $179.5 million , respectively. The Company recognized a decrease in its LIFO reserve of $12.1 million during the first nine months of 2017 , compared with a decrease in its LIFO reserve of $0.2 million during the first nine months of 2016 |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 6 - Property, Plant and Equipment The components of property, plant and equipment at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, Land and buildings $ 478.2 $ 425.4 Machinery and equipment 1,882.4 1,807.6 Subtotal $ 2,360.6 $ 2,233.0 Accumulated depreciation (1,518.4 ) (1,428.6 ) Property, plant and equipment, net $ 842.2 $ 804.4 Total depreciation expense for the nine months ended September 30, 2017 and 2016 was $73.3 million and $71.1 million |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 7 - Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 were as follows: Mobile Industries Process Industries Total Beginning balance $ 97.2 $ 260.3 $ 357.5 Acquisitions 147.6 (1.1 ) 146.5 Foreign currency translation adjustments 4.0 2.3 6.3 Ending balance $ 248.8 $ 261.5 $ 510.3 The Groeneveld, PT Tech and Torsion Control Products acquisitions added a total of $147.6 million of goodwill to the Mobile Industries segment. The goodwill acquired from PT Tech and Torsion Control Products is expected to be tax-deductible over 15 years . The goodwill acquired from Groeneveld is not expected to be tax-deductible. The Company paid a net purchase price adjustment of $0.6 million in January 2017 in connection with the acquisition of EDT, which resulted in an increase to goodwill. The Company also adjusted its purchase price allocation for the Lovejoy acquisition in 2017, which resulted in a $1.7 million reduction to goodwill. The goodwill resulting from the EDT and Lovejoy acquisitions was allocated to the Process Industries segment. The following table displays intangible assets as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Customer relationships $ 322.4 $ 97.6 $ 224.8 $ 211.4 $ 84.4 $ 127.0 Technology and know-how 126.4 29.9 96.5 95.2 25.4 69.8 Trade names 8.6 4.2 4.4 6.5 3.8 2.7 Capitalized software 260.0 223.4 36.6 251.7 211.8 39.9 Other 12.2 8.1 4.1 11.0 7.5 3.5 $ 729.6 $ 363.2 $ 366.4 $ 575.8 $ 332.9 $ 242.9 Intangible assets not subject to amortization: Trade names $ 53.8 $ 53.8 $ 19.4 $ 19.4 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 62.5 $ 62.5 $ 28.1 $ 28.1 Total intangible assets $ 792.1 $ 363.2 $ 428.9 $ 603.9 $ 332.9 $ 271.0 Amortization expense for intangible assets was $29.2 million and $27.2 million for the nine months ended September 30, 2017 and 2016 , respectively. Amortization expense for intangible assets is estimated to be $40.5 million in 2017 ; $39.8 million in 2018 ; $36.0 million in 2019 ; $29.9 million in 2020 ; and $27.3 million in 2021 |
Financing Arrangements
Financing Arrangements | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Short-term debt at September 30, 2017 and December 31, 2016 was as follows: September 30, December 31, Variable-rate Accounts Receivable Facility with an interest rate of 2.07% at September 30, 2017 $ 5.6 $ — Borrowings under variable-rate lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.32% to 1.75% at September 30, 2017 and 0.50% at December 31, 2016, respectively 35.5 19.2 Short-term debt $ 41.1 $ 19.2 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 that 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 $80.3 million at September 30, 2017 . As of September 30, 2017 , there were outstanding borrowings of $74.8 million under the Accounts Receivable Facility, which reduced the availability under this facility to $5.5 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 Statement of Income. The outstanding balance under the Accounts Receivable Facility was classified as short term or long term in accordance with the terms of the agreement and reflects the Company's expectations relative to the minimum borrowing base. The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $250.0 million in the aggregate. Most of these lines of credit are uncommitted. At September 30, 2017 , the Company’s foreign subsidiaries had borrowings outstanding of $35.5 million and bank guarantees of $2.0 million , which reduced the aggregate availability under these facilities to $212.5 million . Long-term debt at September 30, 2017 and December 31, 2016 was as follows: September 30, December 31, Fixed-rate Medium-Term Notes, Series A, maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% $ 159.5 $ 159.5 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an interest rate of 3.875% 346.6 345.9 Variable-rate Senior Credit Facility with a weighted-average interest rate of 1.59% at September 30, 2017 and 1.50% at December 31, 2016 91.2 83.8 Variable-rate Accounts Receivable Facility with an interest rate of 2.07% at September 30, 2017 and 1.65% at December 31, 2016 69.2 48.9 Fixed-rate Euro Senior Unsecured Notes, maturing on September 7, 2027, with an interest rate of 2.02% 176.5 — Variable-rate Euro Term Loan with an interest rate of 1.13% at September 30, 2017 117.8 — Other 4.0 1.9 $ 964.8 $ 640.0 Less: Current maturities 5.0 5.0 Long-term debt $ 959.8 $ 635.0 The Company has a $500 million Amended and Restated Credit Agreement ("Senior Credit Facility"), which matures on June 19, 2020 . At September 30, 2017 , the Company had $91.2 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $408.8 million . The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At September 30, 2017 , the Company was in full compliance with both of these covenants. On September 7, 2017 , the Company issued €150 million of fixed-rate 2.02% senior unsecured notes that mature on September 7, 2027 ("2027 Notes"). On September 18, 2017 , the Company entered into a €100 million variable-rate term loan that matures on September 18, 2020 ("2020 Term Loan"). The increased borrowings were primarily to refinance the acquisition of Groeneveld that closed on July 3, 2017 . Refer to Note 4 - Acquisitions for additional information. These debt instruments have two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. These covenants are the same as those in the Senior Credit Facility. At September 30, 2017 |
Contingencies (Notes)
Contingencies (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 9 - Contingencies Product Warranties: The Company provides limited warranties on certain of its products. The following is a rollforward of the warranty liability for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016 : September 30, December 31, Beginning balance, January 1 $ 6.9 $ 5.4 Additions 2.6 2.4 Payments (2.1 ) (0.9 ) Ending balance $ 7.4 $ 6.9 The product warranty liability at September 30, 2017 and December 31, 2016 was included in other current liabilities on the Consolidated Balance Sheets. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Equity | Note 10 - Equity The changes in the equity components for the nine months ended September 30, 2017 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, 2016 $ 1,310.9 $ 53.1 $ 906.9 $ 1,289.3 $ (77.9 ) $ (891.7 ) $ 31.2 Cumulative effect of ASU 2016-09 0.5 1.4 (0.9 ) Net income 174.2 174.2 — Foreign currency translation adjustment 42.8 40.9 1.9 Pension and postretirement liability 0.2 0.2 Change in fair value of derivative financial (4.2 ) (4.2 ) Dividends paid to noncontrolling (0.2 ) (0.2 ) Dividends – $0.80 per shar e (62.4 ) (62.4 ) Stock-based compensation expense 18.2 18.2 Stock purchased at fair market value (41.0 ) (41.0 ) Stock option exercise activity 27.7 (9.7 ) 37.4 Restricted share activity — (18.6 ) 18.6 Shares surrendered for taxes (10.8 ) (10.8 ) Balance at September 30, 2017 $ 1,455.9 $ 53.1 $ 898.2 $ 1,400.2 $ (41.0 ) $ (887.5 ) $ 32.9 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2017 | |
Statement of Financial Position [Abstract] | |
accumulated other comprehensive income components reclassification | Note 11 - Accumulated Other Comprehensive Income (Loss) The following tables present details about components of accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 , respectively: Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at June 30, 2017 $ (49.9 ) $ 1.6 $ (1.8 ) $ (50.1 ) Other comprehensive income (loss) before 10.9 — (4.0 ) 6.9 Amounts reclassified from accumulated other — 0.1 0.9 1.0 Income tax expense — — 1.1 1.1 Net current period other comprehensive 10.9 0.1 (2.0 ) 9.0 Noncontrolling interest 0.1 — — 0.1 Net current period comprehensive income (loss), net of income taxes and noncontrolling interest 11.0 0.1 (2.0 ) 9.1 Balance at September 30, 2017 $ (38.9 ) $ 1.7 $ (3.8 ) $ (41.0 ) Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2016 $ (79.8 ) $ 1.5 $ 0.4 $ (77.9 ) Other comprehensive income (loss) before 42.8 — (7.1 ) 35.7 Amounts reclassified from accumulated other — 0.3 0.4 0.7 Income tax expense (benefit) — (0.1 ) 2.5 2.4 Net current period other comprehensive 42.8 0.2 (4.2 ) 38.8 Noncontrolling interest (1.9 ) — — (1.9 ) Net current period comprehensive income (loss), net of income taxes and noncontrolling interest 40.9 0.2 (4.2 ) 36.9 Balance at September 30, 2017 $ (38.9 ) $ 1.7 $ (3.8 ) $ (41.0 ) Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at June 30, 2016 $ (55.1 ) $ 1.2 $ (1.3 ) $ (55.2 ) Other comprehensive income (loss) before 3.7 — (0.5 ) 3.2 Amounts reclassified from accumulated other — 0.7 0.5 1.2 Income tax benefit — (0.3 ) — (0.3 ) Net current period other comprehensive 3.7 0.4 — 4.1 Noncontrolling interest (0.6 ) — — (0.6 ) Net current period comprehensive income, net of income taxes and noncontrolling interest 3.1 0.4 — 3.5 Balance at September 30, 2016 $ (52.0 ) $ 1.6 $ (1.3 ) $ (51.7 ) Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2015 $ (55.3 ) $ 0.4 $ 0.3 $ (54.6 ) Other comprehensive income (loss) before 5.2 — (2.5 ) 2.7 Amounts reclassified from accumulated other — 2.0 (0.1 ) 1.9 Income tax (benefit) expense — (0.8 ) 1.0 0.2 Net current period other comprehensive 5.2 1.2 (1.6 ) 4.8 Noncontrolling interest (1.9 ) — — (1.9 ) Net current period comprehensive income (loss), net of income taxes and noncontrolling interest 3.3 1.2 (1.6 ) 2.9 Balance at September 30, 2016 $ (52.0 ) $ 1.6 $ (1.3 ) $ (51.7 ) Other comprehensive income (loss) before reclassifications and income taxes includes the effect of foreign currency. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016 , respectively: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator: Net income attributable to The Timken Company $ 53.5 $ 33.6 $ 174.2 $ 147.7 Less: undistributed earnings allocated to nonvested stock — — — — Net income available to common shareholders for basic earnings per share and diluted earnings per share $ 53.5 $ 33.6 $ 174.2 $ 147.7 Denominator: Weighted average number of shares outstanding, basic 77,694,974 77,935,783 77,766,828 78,808,179 Effect of dilutive securities: Stock options and awards based on the treasury stock method 1,109,322 681,693 1,123,102 663,577 Weighted average number of shares outstanding, assuming dilution of stock options and awards 78,804,296 78,617,476 78,889,930 79,471,756 Basic earnings per share $ 0.69 $ 0.43 $ 2.24 $ 1.87 Diluted earnings per share $ 0.68 $ 0.43 $ 2.21 $ 1.86 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, 2017 and 2016 were 473,694 and 2,706,711 , respectively. During the nine months ended September 30, 2017 and 2016 , the antidilutive stock options outstanding were 529,020 and 3,080,133 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 13 - Segment Information The primary measurement used by management to measure the financial performance of each segment is earnings before interest and taxes ("EBIT"). Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net sales: Mobile Industries $ 422.8 $ 353.1 $ 1,214.2 $ 1,104.1 Process Industries 348.6 304.3 1,011.6 910.9 $ 771.4 $ 657.4 $ 2,225.8 $ 2,015.0 Segment EBIT: Mobile Industries $ 34.9 $ 25.9 $ 100.1 $ 95.3 Process Industries 61.7 42.0 164.9 123.7 Total EBIT, for reportable segments $ 96.6 $ 67.9 $ 265.0 $ 219.0 Corporate expenses (12.0 ) (10.9 ) (37.8 ) (34.8 ) Continued Dumping & Subsidy Offset Act income — (0.2 ) — 53.6 Interest expense (10.1 ) (8.0 ) (26.5 ) (25.1 ) Interest income 0.7 0.4 2.0 1.1 Income before income taxes $ 75.2 $ 49.2 $ 202.7 $ 213.8 |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | Note 14 - Impairment and Restructuring Charges Impairment and restructuring charges by segment are comprised of the following: For the three months ended September 30, 2017 : Mobile Industries Process Industries Corporate Total Severance and related benefit costs $ 1.3 $ — $ — $ 1.3 Total $ 1.3 $ — $ — $ 1.3 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 nine months ended September 30, 2017 : Mobile Industries Process Industries Corporate Total Severance and related benefit costs $ 3.1 $ 0.1 $ — $ 3.2 Exit costs 0.1 — 0.5 0.6 Total $ 3.2 $ 0.1 $ 0.5 $ 3.8 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 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. On September 29, 2016, the Company announced the closure of its bearing plant in Pulaski, Tennessee ("Pulaski"), which is expected to close during the fourth quarter of 2017 and to affect approximately 120 employees. During the three and nine months ended September 30, 2017 , the Company recognized severance and related benefit costs of $0.2 million and $1.3 million , respectively, related to this closure. During the three months ended September 30, 2016 , the Company recorded severance and related benefit costs of $1.7 million related to this closure. The Company has incurred pretax costs related to this closure of $8.1 million as of September 30, 2017 , including rationalization costs recorded in cost of products sold. In August 2016, the Company completed the consultation process to close the manufacturing operations in Benoni, South Africa ("Benoni") affecting 85 employees. Benoni will continue to recondition bearings and assemble rail bearings. 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 Company completed the closure of this manufacturing facility on March 31, 2017 . During the three months ended September 30, 2016 , the Company recorded impairment charges of $0.7 million and severance and related benefit costs of $0.2 million related to this closure. During the nine months ended September 30, 2016 , the Company recorded impairment charges of $3.1 million and severance and related benefit costs of $1.7 million in connection with this closure. The Company has incurred pretax costs related to this closure of $11.5 million as of September 30, 2017 , including rationalization costs recorded in cost of products sold. During the three months and nine months ended September 30, 2017 , the Company recognized $0.7 million and $1.5 million , respectively, of severance and related benefit costs to eliminate approximately 50 positions in the aggregate. The amounts recognized for the three months and nine months ended September 30, 2017 primarily related to the Mobile Industries segment. During the nine months ended September 30, 2016 , the Company recognized $7.7 million of severance and related benefit costs to eliminate approximately 175 positions. 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. Consolidated Restructuring Accrual: The following is a rollforward of the consolidated restructuring accrual for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016 : September 30, December 31, Beginning balance, January 1 $ 10.1 $ 11.3 Expense 3.8 17.8 Payments (9.2 ) (19.0 ) Ending balance $ 4.7 $ 10.1 The restructuring accruals at September 30, 2017 and December 31, 2016 |
Retirement Benefit Plans
Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Retirement Benefit Plans | Note 15 - 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, 2017 are based on calculations prepared by the Company's actuaries 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, 2017 . U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 3.1 $ 3.3 $ 0.4 $ 0.4 $ 3.5 $ 3.7 Interest cost 6.2 6.6 1.9 2.6 8.1 9.2 Expected return on plan assets (7.0 ) (7.4 ) (2.9 ) (2.6 ) (9.9 ) (10.0 ) Amortization of prior service cost 0.3 0.4 0.1 0.1 0.4 0.5 Net periodic benefit cost $ 2.6 $ 2.9 $ (0.5 ) $ 0.5 $ 2.1 $ 3.4 U.S. Plans International Plans Total Nine Months Ended Nine Months Ended Nine Months Ended 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 9.2 $ 9.9 $ 1.2 $ 1.1 $ 10.4 $ 11.0 Interest cost 18.5 20.0 5.6 8.2 24.1 28.2 Expected return on plan assets (21.0 ) (22.3 ) (8.3 ) (8.0 ) (29.3 ) (30.3 ) Amortization of prior service cost 1.0 1.2 0.1 0.1 1.1 1.3 Recognition of actuarial loss 4.4 — — — 4.4 — Net periodic benefit cost $ 12.1 $ 8.8 $ (1.4 ) $ 1.4 $ 10.7 $ 10.2 During the first three months of 2017 , the Company recognized actuarial losses of $4.4 million Note 16 - Other Postretirement Benefit Plans 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, 2017 are based on calculations prepared by the Company's actuaries 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, 2017 . Three Months Ended Nine Months Ended 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ — $ 0.1 $ 0.1 $ 0.3 Interest cost 2.3 2.7 6.8 8.2 Expected return on plan assets (1.4 ) (1.6 ) (4.2 ) (4.9 ) Amortization of prior service cost (0.3 ) 0.2 (0.8 ) 0.7 Net periodic benefit cost $ 0.6 $ 1.4 $ 1.9 $ 4.3 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Postretirement Benefit Plans | Note 15 - 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, 2017 are based on calculations prepared by the Company's actuaries 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, 2017 . U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 3.1 $ 3.3 $ 0.4 $ 0.4 $ 3.5 $ 3.7 Interest cost 6.2 6.6 1.9 2.6 8.1 9.2 Expected return on plan assets (7.0 ) (7.4 ) (2.9 ) (2.6 ) (9.9 ) (10.0 ) Amortization of prior service cost 0.3 0.4 0.1 0.1 0.4 0.5 Net periodic benefit cost $ 2.6 $ 2.9 $ (0.5 ) $ 0.5 $ 2.1 $ 3.4 U.S. Plans International Plans Total Nine Months Ended Nine Months Ended Nine Months Ended 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 9.2 $ 9.9 $ 1.2 $ 1.1 $ 10.4 $ 11.0 Interest cost 18.5 20.0 5.6 8.2 24.1 28.2 Expected return on plan assets (21.0 ) (22.3 ) (8.3 ) (8.0 ) (29.3 ) (30.3 ) Amortization of prior service cost 1.0 1.2 0.1 0.1 1.1 1.3 Recognition of actuarial loss 4.4 — — — 4.4 — Net periodic benefit cost $ 12.1 $ 8.8 $ (1.4 ) $ 1.4 $ 10.7 $ 10.2 During the first three months of 2017 , the Company recognized actuarial losses of $4.4 million Note 16 - Other Postretirement Benefit Plans 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, 2017 are based on calculations prepared by the Company's actuaries 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, 2017 . Three Months Ended Nine Months Ended 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ — $ 0.1 $ 0.1 $ 0.3 Interest cost 2.3 2.7 6.8 8.2 Expected return on plan assets (1.4 ) (1.6 ) (4.2 ) (4.9 ) Amortization of prior service cost (0.3 ) 0.2 (0.8 ) 0.7 Net periodic benefit cost $ 0.6 $ 1.4 $ 1.9 $ 4.3 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 18 - 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, 2017 and December 31, 2016 : September 30, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 125.4 $ 120.5 $ 4.9 $ — Cash and cash equivalents measured at net asset value 11.8 — — — Restricted cash 3.3 3.3 — — Short-term investments 16.5 — 16.5 — Short-term investments measured at net asset value 0.2 — — — Foreign currency hedges 1.6 — 1.6 — Total Assets $ 158.8 $ 123.8 $ 23.0 $ — Liabilities: Foreign currency hedges $ 3.9 $ — $ 3.9 $ — Total Liabilities $ 3.9 $ — $ 3.9 $ — December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 129.6 $ 125.0 $ 4.6 $ — Cash and cash equivalents measured net asset value 19.2 — — — Restricted cash 2.7 2.7 — — Short-term investments 9.4 — 9.4 — Short-term investments measured at net asset value 2.3 — — — Foreign currency hedges 9.9 — 9.9 — Total Assets $ 173.1 $ 127.7 $ 23.9 $ — Liabilities: Foreign currency hedges $ 2.1 $ — $ 2.1 $ — Total Liabilities $ 2.1 $ — $ 2.1 $ — Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are valued at the redemption value. Short-term investments are investments with maturities between four months and one year and generally are valued at amortized cost, which approximates fair value. A portion of the cash and cash equivalents and short-term investments 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. 2017 No assets were measured at fair value on a nonrecurring basis for the nine months ended September 30, 2017 . 2016 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 of $0.2 million . The fair value of these assets was based on the price that the Company expected to receive when it disposed of these assets. On March 17, 2016, the Company announced the closure of its Altavista bearing plant. The Company completed the closure of this manufacturing facility on March 31, 2017. 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 charge of $2.4 million . The fair value for the plant was based on the price that the Company expected 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 . During the second quarter of 2017 , this facility was reclassified to assets held for sale and included in other current assets on the Consolidated Balance Sheet. On July 14, 2017 , this facility was sold for a pretax gain of approximately $1.6 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 charge of $0.5 million . The fair value for the equipment was based on the price that the Company expected to receive from the sale of the equipment. 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. Due to the nature of fair value calculations for variable-rate debt, the carrying value of the Company's long-term variable rate debt is a reasonable estimate of its fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $723.9 million and $532.2 million at September 30, 2017 and December 31, 2016 , respectively. The carrying value of this debt was $684.3 million and $507.3 million at September 30, 2017 and December 31, 2016 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 19 - 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. The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and expenses and certain interest rate hedges as fair value hedges of fixed-rate borrowings. The Company does not purchase or hold any derivative financial instruments for trading purposes. As of September 30, 2017 and December 31, 2016 , the Company had $223.2 million and $282.8 million , respectively, of outstanding foreign currency forward contracts at notional value. Refer to Note 18 - Fair Value for the fair value disclosure of derivative financial instruments. Cash Flow Hedging Strategy: For certain derivative instruments that are designated 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 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 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 typically are 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 typically are 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 derivative instruments. Those balances are presented in the other non-current assets/liabilities accounts within the Consolidated Balance Sheets. Derivative Assets Derivatives Liabilities Derivatives designated as hedging instruments Fair Value at 9/30/17 Fair Value at 12/31/16 Fair Value at 9/30/17 Fair Value at 12/31/16 Foreign currency forward contracts $ 0.3 $ 2.3 $ 2.9 $ 0.5 Derivatives not designated as hedging instruments Foreign currency forward contracts 1.3 7.6 1.0 1.6 Total Derivatives $ 1.6 $ 9.9 $ 3.9 $ 2.1 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 on derivative instruments Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2017 2016 2017 2016 Foreign currency forward contracts $ (1.6 ) $ (0.5 ) $ (4.7 ) $ (2.5 ) Interest rate swaps (2.4 ) — (2.4 ) — Total $ (4.0 ) $ (0.5 ) $ (7.1 ) $ (2.5 ) Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion) Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2017 2016 2017 2016 Foreign currency forward contracts $ (0.9 ) $ (0.4 ) $ (0.2 ) $ 0.4 Interest rate swaps — (0.1 ) (0.2 ) (0.3 ) Total $ (0.9 ) $ (0.5 ) $ (0.4 ) $ 0.1 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 2017 2016 2017 2016 Foreign currency forward contracts Other income (expense), net $ 2.7 $ (0.2 ) $ (5.6 ) $ (4.5 ) |
Continued Dumping and Subsidy A
Continued Dumping and Subsidy Act (Notes) | 9 Months Ended |
Sep. 30, 2017 | |
CDSOA [Abstract] | |
Continued Dumping And Subsidy Offset Act [Text Block] | Note 20 - Continued Dumping and Subsidy Offset Act 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 U.S. 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 for certain years while litigation was ongoing. However, much of the CDSOA litigation that involves antidumping orders where Timken is a qualifying domestic producer has concluded. Subsequently, 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, representing funds that would have been distributed to the Company at the end of calendar years 2011 through 2015. |
Change in Accounting Principl26
Change in Accounting Principles (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Changes [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The following tables reflect the changes to financial statement line items as a result of the change in accounting principles for the periods presented in the accompanying unaudited consolidated financial statements: Consolidated Statements of Income: Three Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 556.7 $ 554.4 $ (2.3 ) $ 489.9 $ 487.7 $ (2.2 ) Gross profit 214.7 217.0 2.3 167.5 169.7 2.2 Selling, general and administrative expense 136.8 134.0 (2.8 ) 109.5 107.2 (2.3 ) Pension settlement expenses 3.9 — (3.9 ) 10.3 0.1 (10.2 ) Operating income 72.7 81.7 9.0 42.4 57.1 14.7 Income before income taxes 66.2 75.2 9.0 34.5 49.2 14.7 Provision for income taxes 18.0 21.1 3.1 13.5 15.2 1.7 Net income 48.2 54.1 5.9 21.0 34.0 13.0 Net income attributable to The Timken Company $ 47.6 $ 53.5 $ 5.9 $ 20.6 $ 33.6 $ 13.0 Basic earnings per share $ 0.61 $ 0.69 $ 0.08 $ 0.26 $ 0.43 $ 0.17 Diluted earnings per share $ 0.60 $ 0.68 $ 0.08 $ 0.26 $ 0.43 $ 0.17 Consolidated Statements of Income: Nine Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 1,630.9 $ 1,626.5 $ (4.4 ) $ 1,484.3 $ 1,477.7 $ (6.6 ) Gross profit 594.9 599.3 4.4 530.7 537.3 6.6 Selling, general and administrative expense 383.8 377.4 (6.4 ) 338.0 331.3 (6.7 ) Pension settlement expenses 15.7 — (15.7 ) 11.9 1.3 (10.6 ) Operating income 191.6 218.1 26.5 162.1 186.0 23.9 Income before income taxes 176.2 202.7 26.5 189.9 213.8 23.9 Provision for income taxes 19.3 28.5 9.2 61.1 65.8 4.7 Net income 156.9 174.2 17.3 128.8 148.0 19.2 Net income attributable to The Timken Company $ 156.9 $ 174.2 $ 17.3 $ 128.5 $ 147.7 $ 19.2 Basic earnings per share $ 2.02 $ 2.24 $ 0.22 $ 1.63 $ 1.87 $ 0.24 Diluted earnings per share $ 1.99 $ 2.21 $ 0.22 $ 1.62 $ 1.86 $ 0.24 Consolidated Statements of Comprehensive Income: Three Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Net Income $ 48.2 $ 54.1 $ 5.9 $ 21.0 $ 34.0 $ 13.0 Foreign currency translation adjustments 10.9 10.9 — 2.2 3.7 1.5 Pension and postretirement liability adjustment 6.0 0.1 (5.9 ) 15.0 0.4 (14.6 ) Other comprehensive income, net of tax 14.9 9.0 (5.9 ) 17.2 4.1 (13.1 ) Comprehensive Income, net of tax 63.1 63.1 — 38.2 38.1 (0.1 ) Less: comprehensive income attributable to noncontrolling interest 0.5 0.5 — 0.9 1.0 0.1 Comprehensive income attributable to The Timken Company $ 62.6 $ 62.6 $ — $ 37.3 $ 37.1 $ (0.2 ) Nine Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Net Income $ 156.9 $ 174.2 $ 17.3 $ 128.8 $ 148.0 $ 19.2 Foreign currency translation adjustments 42.8 42.8 — (1.4 ) 5.2 6.6 Pension and postretirement liability adjustment 17.5 0.2 (17.3 ) 27.0 1.2 (25.8 ) Other comprehensive income, net of tax 56.1 38.8 (17.3 ) 24.0 4.8 (19.2 ) Comprehensive Income, net of tax 213.0 213.0 — 152.8 152.8 — Less: comprehensive income attributable to noncontrolling interest 1.9 1.9 — 2.1 2.2 0.1 Comprehensive income attributable to The Timken Company $ 211.1 $ 211.1 $ — $ 150.7 $ 150.6 $ (0.1 ) Consolidated Balance Sheets: September 30, 2017 December 31, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Inventories, net $ 679.6 $ 687.5 $ 7.9 $ 545.8 $ 553.7 $ 7.9 Total current assets 1,466.4 1,474.3 7.9 1,204.0 1,211.9 7.9 Deferred income taxes 50.9 47.9 (3.0 ) 54.4 51.4 (3.0 ) Total other assets 1,050.1 1,047.1 (3.0 ) 749.9 746.9 (3.0 ) Total assets 3,358.7 3,363.6 4.9 2,758.3 2,763.2 4.9 Earnings invested in the business 1,622.2 1,400.2 (222.0 ) 1,528.6 1,289.3 (239.3 ) Accumulated other comprehensive loss (267.8 ) (41.0 ) 226.8 (322.0 ) (77.9 ) 244.1 Total shareholders' equity 1,418.2 1,423.0 4.8 1,274.9 1,279.7 4.8 Noncontrolling interest 32.8 32.9 0.1 31.1 31.2 0.1 Total equity 1,451.0 1,455.9 4.9 1,306.0 1,310.9 4.9 Total liabilities and shareholders' equity $ 3,358.7 $ 3,363.6 $ 4.9 $ 2,758.3 $ 2,763.2 $ 4.9 Consolidated Statements of Cash Flows: Nine Months Ended September 30, 2017 September 30, 2016 Previous Accounting Method As Reported Effect of Accounting Change As Previously Reported Revised Effect of Accounting Change Net income attributable to The Timken Company $ 156.9 $ 174.2 $ 17.3 $ 128.5 $ 147.7 $ 19.2 Deferred income tax (benefit) provision (1.7 ) 7.5 9.2 (0.1 ) 4.6 4.7 Pension and other postretirement expense 39.1 12.6 (26.5 ) 38.4 14.5 (23.9 ) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The following table presents the initial purchase price allocation for acquisitions in 2017: Initial Purchase Price Allocation Assets: Accounts receivable, net $ 27.6 Inventories, net 29.1 Other current assets 4.7 Property, plant and equipment, net 31.6 Goodwill 147.6 Other intangible assets 175.3 Other non-current assets 1.9 Total assets acquired $ 417.8 Liabilities: Accounts payable, trade $ 9.5 Salaries, wages and benefits 5.8 Other current liabilities 8.2 Short-term debt 1.0 Long-term debt 2.0 Deferred income taxes 42.4 Other non-current liabilities 2.3 Total liabilities assumed $ 71.2 Net assets acquired $ 346.6 |
Business Acquisition Purchase price allocation identifiable intangible assets | The following table summarizes the initial purchase price allocation for identifiable intangible assets acquired in 2017: Initial Purchase Weighted - Trade names (indefinite life) $ 33.4 Indefinite Trade names (finite life) 2.2 13 years Technology and know-how 29.9 16 years Customer relationships 108.2 17 years Other 0.2 5 years Capitalized software 1.4 3 years Total intangible assets $ 175.3 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Components of inventories | The components of inventories at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, Manufacturing supplies $ 29.5 $ 28.2 Raw materials 85.7 54.9 Work in process 238.4 182.9 Finished products 367.4 308.8 Subtotal $ 721.0 $ 574.8 Allowance for obsolete and surplus inventory (33.5 ) (21.1 ) Total Inventories, net $ 687.5 $ 553.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Long Lived Assets Held-for-sale [Line Items] | |
Components of property, plant and equipment | The components of property, plant and equipment at September 30, 2017 and December 31, 2016 were as follows: September 30, December 31, Land and buildings $ 478.2 $ 425.4 Machinery and equipment 1,882.4 1,807.6 Subtotal $ 2,360.6 $ 2,233.0 Accumulated depreciation (1,518.4 ) (1,428.6 ) Property, plant and equipment, net $ 842.2 $ 804.4 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 were as follows: Mobile Industries Process Industries Total Beginning balance $ 97.2 $ 260.3 $ 357.5 Acquisitions 147.6 (1.1 ) 146.5 Foreign currency translation adjustments 4.0 2.3 6.3 Ending balance $ 248.8 $ 261.5 $ 510.3 |
Intangible assets | The following table displays intangible assets as of September 30, 2017 and December 31, 2016 : As of September 30, 2017 As of December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject to amortization: Customer relationships $ 322.4 $ 97.6 $ 224.8 $ 211.4 $ 84.4 $ 127.0 Technology and know-how 126.4 29.9 96.5 95.2 25.4 69.8 Trade names 8.6 4.2 4.4 6.5 3.8 2.7 Capitalized software 260.0 223.4 36.6 251.7 211.8 39.9 Other 12.2 8.1 4.1 11.0 7.5 3.5 $ 729.6 $ 363.2 $ 366.4 $ 575.8 $ 332.9 $ 242.9 Intangible assets not subject to amortization: Trade names $ 53.8 $ 53.8 $ 19.4 $ 19.4 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 62.5 $ 62.5 $ 28.1 $ 28.1 Total intangible assets $ 792.1 $ 363.2 $ 428.9 $ 603.9 $ 332.9 $ 271.0 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Short-term debt | Short-term debt at September 30, 2017 and December 31, 2016 was as follows: September 30, December 31, Variable-rate Accounts Receivable Facility with an interest rate of 2.07% at September 30, 2017 $ 5.6 $ — Borrowings under variable-rate lines of credit for certain of the Company’s foreign subsidiaries with various banks with interest rates ranging from 0.32% to 1.75% at September 30, 2017 and 0.50% at December 31, 2016, respectively 35.5 19.2 Short-term debt $ 41.1 $ 19.2 |
Long-term debt | Long-term debt at September 30, 2017 and December 31, 2016 was as follows: September 30, December 31, Fixed-rate Medium-Term Notes, Series A, maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% $ 159.5 $ 159.5 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an interest rate of 3.875% 346.6 345.9 Variable-rate Senior Credit Facility with a weighted-average interest rate of 1.59% at September 30, 2017 and 1.50% at December 31, 2016 91.2 83.8 Variable-rate Accounts Receivable Facility with an interest rate of 2.07% at September 30, 2017 and 1.65% at December 31, 2016 69.2 48.9 Fixed-rate Euro Senior Unsecured Notes, maturing on September 7, 2027, with an interest rate of 2.02% 176.5 — Variable-rate Euro Term Loan with an interest rate of 1.13% at September 30, 2017 117.8 — Other 4.0 1.9 $ 964.8 $ 640.0 Less: Current maturities 5.0 5.0 Long-term debt $ 959.8 $ 635.0 |
Contingencies (Tables)
Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The Company provides limited warranties on certain of its products. The following is a rollforward of the warranty liability for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016 : September 30, December 31, Beginning balance, January 1 $ 6.9 $ 5.4 Additions 2.6 2.4 Payments (2.1 ) (0.9 ) Ending balance $ 7.4 $ 6.9 |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Equity | The changes in the equity components for the nine months ended September 30, 2017 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, 2016 $ 1,310.9 $ 53.1 $ 906.9 $ 1,289.3 $ (77.9 ) $ (891.7 ) $ 31.2 Cumulative effect of ASU 2016-09 0.5 1.4 (0.9 ) Net income 174.2 174.2 — Foreign currency translation adjustment 42.8 40.9 1.9 Pension and postretirement liability 0.2 0.2 Change in fair value of derivative financial (4.2 ) (4.2 ) Dividends paid to noncontrolling (0.2 ) (0.2 ) Dividends – $0.80 per shar e (62.4 ) (62.4 ) Stock-based compensation expense 18.2 18.2 Stock purchased at fair market value (41.0 ) (41.0 ) Stock option exercise activity 27.7 (9.7 ) 37.4 Restricted share activity — (18.6 ) 18.6 Shares surrendered for taxes (10.8 ) (10.8 ) Balance at September 30, 2017 $ 1,455.9 $ 53.1 $ 898.2 $ 1,400.2 $ (41.0 ) $ (887.5 ) $ 32.9 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following tables present details about components of accumulated other comprehensive loss for the three and nine months ended September 30, 2017 and 2016 , respectively: Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at June 30, 2017 $ (49.9 ) $ 1.6 $ (1.8 ) $ (50.1 ) Other comprehensive income (loss) before 10.9 — (4.0 ) 6.9 Amounts reclassified from accumulated other — 0.1 0.9 1.0 Income tax expense — — 1.1 1.1 Net current period other comprehensive 10.9 0.1 (2.0 ) 9.0 Noncontrolling interest 0.1 — — 0.1 Net current period comprehensive income (loss), net of income taxes and noncontrolling interest 11.0 0.1 (2.0 ) 9.1 Balance at September 30, 2017 $ (38.9 ) $ 1.7 $ (3.8 ) $ (41.0 ) Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2016 $ (79.8 ) $ 1.5 $ 0.4 $ (77.9 ) Other comprehensive income (loss) before 42.8 — (7.1 ) 35.7 Amounts reclassified from accumulated other — 0.3 0.4 0.7 Income tax expense (benefit) — (0.1 ) 2.5 2.4 Net current period other comprehensive 42.8 0.2 (4.2 ) 38.8 Noncontrolling interest (1.9 ) — — (1.9 ) Net current period comprehensive income (loss), net of income taxes and noncontrolling interest 40.9 0.2 (4.2 ) 36.9 Balance at September 30, 2017 $ (38.9 ) $ 1.7 $ (3.8 ) $ (41.0 ) Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at June 30, 2016 $ (55.1 ) $ 1.2 $ (1.3 ) $ (55.2 ) Other comprehensive income (loss) before 3.7 — (0.5 ) 3.2 Amounts reclassified from accumulated other — 0.7 0.5 1.2 Income tax benefit — (0.3 ) — (0.3 ) Net current period other comprehensive 3.7 0.4 — 4.1 Noncontrolling interest (0.6 ) — — (0.6 ) Net current period comprehensive income, net of income taxes and noncontrolling interest 3.1 0.4 — 3.5 Balance at September 30, 2016 $ (52.0 ) $ 1.6 $ (1.3 ) $ (51.7 ) Foreign currency translation adjustments Pension and postretirement liability adjustments Change in fair value of derivative financial instruments Total Balance at December 31, 2015 $ (55.3 ) $ 0.4 $ 0.3 $ (54.6 ) Other comprehensive income (loss) before 5.2 — (2.5 ) 2.7 Amounts reclassified from accumulated other — 2.0 (0.1 ) 1.9 Income tax (benefit) expense — (0.8 ) 1.0 0.2 Net current period other comprehensive 5.2 1.2 (1.6 ) 4.8 Noncontrolling interest (1.9 ) — — (1.9 ) Net current period comprehensive income (loss), net of income taxes and noncontrolling interest 3.3 1.2 (1.6 ) 2.9 Balance at September 30, 2016 $ (52.0 ) $ 1.6 $ (1.3 ) $ (51.7 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 and 2016 , respectively: Three Months Ended Nine Months Ended 2017 2016 2017 2016 Numerator: Net income attributable to The Timken Company $ 53.5 $ 33.6 $ 174.2 $ 147.7 Less: undistributed earnings allocated to nonvested stock — — — — Net income available to common shareholders for basic earnings per share and diluted earnings per share $ 53.5 $ 33.6 $ 174.2 $ 147.7 Denominator: Weighted average number of shares outstanding, basic 77,694,974 77,935,783 77,766,828 78,808,179 Effect of dilutive securities: Stock options and awards based on the treasury stock method 1,109,322 681,693 1,123,102 663,577 Weighted average number of shares outstanding, assuming dilution of stock options and awards 78,804,296 78,617,476 78,889,930 79,471,756 Basic earnings per share $ 0.69 $ 0.43 $ 2.24 $ 1.87 Diluted earnings per share $ 0.68 $ 0.43 $ 2.21 $ 1.86 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment wise financial performance | The primary measurement used by management to measure the financial performance of each segment is earnings before interest and taxes ("EBIT"). Three Months Ended Nine Months Ended 2017 2016 2017 2016 Net sales: Mobile Industries $ 422.8 $ 353.1 $ 1,214.2 $ 1,104.1 Process Industries 348.6 304.3 1,011.6 910.9 $ 771.4 $ 657.4 $ 2,225.8 $ 2,015.0 Segment EBIT: Mobile Industries $ 34.9 $ 25.9 $ 100.1 $ 95.3 Process Industries 61.7 42.0 164.9 123.7 Total EBIT, for reportable segments $ 96.6 $ 67.9 $ 265.0 $ 219.0 Corporate expenses (12.0 ) (10.9 ) (37.8 ) (34.8 ) Continued Dumping & Subsidy Offset Act income — (0.2 ) — 53.6 Interest expense (10.1 ) (8.0 ) (26.5 ) (25.1 ) Interest income 0.7 0.4 2.0 1.1 Income before income taxes $ 75.2 $ 49.2 $ 202.7 $ 213.8 |
Impairment and Restructuring 37
Impairment and Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 : Mobile Industries Process Industries Corporate Total Severance and related benefit costs $ 1.3 $ — $ — $ 1.3 Total $ 1.3 $ — $ — $ 1.3 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 nine months ended September 30, 2017 : Mobile Industries Process Industries Corporate Total Severance and related benefit costs $ 3.1 $ 0.1 $ — $ 3.2 Exit costs 0.1 — 0.5 0.6 Total $ 3.2 $ 0.1 $ 0.5 $ 3.8 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 |
Roll Forward consolidated restructuring accrual | The following is a rollforward of the consolidated restructuring accrual for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016 : September 30, December 31, Beginning balance, January 1 $ 10.1 $ 11.3 Expense 3.8 17.8 Payments (9.2 ) (19.0 ) Ending balance $ 4.7 $ 10.1 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
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, 2017 are based on calculations prepared by the Company's actuaries 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, 2017 . U.S. Plans International Plans Total Three Months Ended Three Months Ended Three Months Ended 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 3.1 $ 3.3 $ 0.4 $ 0.4 $ 3.5 $ 3.7 Interest cost 6.2 6.6 1.9 2.6 8.1 9.2 Expected return on plan assets (7.0 ) (7.4 ) (2.9 ) (2.6 ) (9.9 ) (10.0 ) Amortization of prior service cost 0.3 0.4 0.1 0.1 0.4 0.5 Net periodic benefit cost $ 2.6 $ 2.9 $ (0.5 ) $ 0.5 $ 2.1 $ 3.4 U.S. Plans International Plans Total Nine Months Ended Nine Months Ended Nine Months Ended 2017 2016 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ 9.2 $ 9.9 $ 1.2 $ 1.1 $ 10.4 $ 11.0 Interest cost 18.5 20.0 5.6 8.2 24.1 28.2 Expected return on plan assets (21.0 ) (22.3 ) (8.3 ) (8.0 ) (29.3 ) (30.3 ) Amortization of prior service cost 1.0 1.2 0.1 0.1 1.1 1.3 Recognition of actuarial loss 4.4 — — — 4.4 — Net periodic benefit cost $ 12.1 $ 8.8 $ (1.4 ) $ 1.4 $ 10.7 $ 10.2 |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plan Disclosures [Table Text Block] | 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, 2017 are based on calculations prepared by the Company's actuaries 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, 2017 . Three Months Ended Nine Months Ended 2017 2016 2017 2016 Components of net periodic benefit cost: Service cost $ — $ 0.1 $ 0.1 $ 0.3 Interest cost 2.3 2.7 6.8 8.2 Expected return on plan assets (1.4 ) (1.6 ) (4.2 ) (4.9 ) Amortization of prior service cost (0.3 ) 0.2 (0.8 ) 0.7 Net periodic benefit cost $ 0.6 $ 1.4 $ 1.9 $ 4.3 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Taxes [Abstract] | |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Table Text Block] | The following table is a rollforward of the Company's gross unrecognized tax benefits for the nine months ended September 30, 2017 : September 30, Beginning balance, January 1 $ 39.1 Tax positions related to the prior years: Additions 5.6 Reductions (1.3 ) Lapses in statutes of limitation (28.6 ) Ending Balance $ 14.8 |
Income Tax Disclosure [Text Block] | Note 17 - 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 are recorded during the period(s) in which they occur. Three Months Ended Nine Months Ended 2017 2016 2017 2016 Provision for income taxes $ 21.1 $ 15.2 $ 28.5 $ 65.8 Effective tax rate 28.1 % 30.9 % 14.1 % 30.8 % The income tax expense for the third quarter and first nine months of 2017 was calculated using the forecasted multi-jurisdictional annual effective tax rates to determine a blended annual effective tax rate. The effective tax rate differs from the U.S. federal statutory rate of 35% primarily due to the projected mix of earnings in international jurisdictions with relatively lower tax rates and tax benefits related to foreign tax credits, which are partially offset by losses in jurisdictions with no tax benefit due to valuation allowances. Income tax expense increased for the third quarter of 2017 compared to the third quarter of 2016 primarily due to the significant increase in pre-tax earnings, primarily in non-U.S. jurisdictions. The expense was partially offset by favorable U.S. tax deductions, tax credits and favorable discrete tax amounts. Income tax expense for the nine months ended September 30, 2017 is lower than the nine months ended September 30, 2016 primarily due to the net reversal of accruals for prior year uncertain tax positions recorded discretely and favorable U.S. tax deductions and tax credits. The following table is a rollforward of the Company's gross unrecognized tax benefits for the nine months ended September 30, 2017 : September 30, Beginning balance, January 1 $ 39.1 Tax positions related to the prior years: Additions 5.6 Reductions (1.3 ) Lapses in statutes of limitation (28.6 ) Ending Balance $ 14.8 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 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 are recorded during the period(s) in which they occur. Three Months Ended Nine Months Ended 2017 2016 2017 2016 Provision for income taxes $ 21.1 $ 15.2 $ 28.5 $ 65.8 Effective tax rate 28.1 % 30.9 % 14.1 % 30.8 % |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2017 and December 31, 2016 : September 30, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 125.4 $ 120.5 $ 4.9 $ — Cash and cash equivalents measured at net asset value 11.8 — — — Restricted cash 3.3 3.3 — — Short-term investments 16.5 — 16.5 — Short-term investments measured at net asset value 0.2 — — — Foreign currency hedges 1.6 — 1.6 — Total Assets $ 158.8 $ 123.8 $ 23.0 $ — Liabilities: Foreign currency hedges $ 3.9 $ — $ 3.9 $ — Total Liabilities $ 3.9 $ — $ 3.9 $ — December 31, 2016 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 129.6 $ 125.0 $ 4.6 $ — Cash and cash equivalents measured net asset value 19.2 — — — Restricted cash 2.7 2.7 — — Short-term investments 9.4 — 9.4 — Short-term investments measured at net asset value 2.3 — — — Foreign currency hedges 9.9 — 9.9 — Total Assets $ 173.1 $ 127.7 $ 23.9 $ — Liabilities: Foreign currency hedges $ 2.1 $ — $ 2.1 $ — Total Liabilities $ 2.1 $ — $ 2.1 $ — |
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, 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 |
Derivatives and Hedging Activ42
Derivatives and Hedging Activities (Table) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the fair value of the Company's derivative instruments. Those balances are presented in the other non-current assets/liabilities accounts within the Consolidated Balance Sheets. Derivative Assets Derivatives Liabilities Derivatives designated as hedging instruments Fair Value at 9/30/17 Fair Value at 12/31/16 Fair Value at 9/30/17 Fair Value at 12/31/16 Foreign currency forward contracts $ 0.3 $ 2.3 $ 2.9 $ 0.5 Derivatives not designated as hedging instruments Foreign currency forward contracts 1.3 7.6 1.0 1.6 Total Derivatives $ 1.6 $ 9.9 $ 3.9 $ 2.1 |
Derivative Instruments, Gain (Loss) [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 on derivative instruments Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2017 2016 2017 2016 Foreign currency forward contracts $ (1.6 ) $ (0.5 ) $ (4.7 ) $ (2.5 ) Interest rate swaps (2.4 ) — (2.4 ) — Total $ (4.0 ) $ (0.5 ) $ (7.1 ) $ (2.5 ) Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Loss into income (effective portion) Three Months Ended Nine Months Ended Derivatives in cash flow hedging relationships 2017 2016 2017 2016 Foreign currency forward contracts $ (0.9 ) $ (0.4 ) $ (0.2 ) $ 0.4 Interest rate swaps — (0.1 ) (0.2 ) (0.3 ) Total $ (0.9 ) $ (0.5 ) $ (0.4 ) $ 0.1 |
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 2017 2016 2017 2016 Foreign currency forward contracts Other income (expense), net $ 2.7 $ (0.2 ) $ (5.6 ) $ (4.5 ) |
Change in Accounting Principl43
Change in Accounting Principles (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Jan. 01, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Cost of products sold | $ 554.4 | $ 487.7 | $ 1,626.5 | $ 1,477.7 | |||||
Gross Profit | 217 | 169.7 | 599.3 | 537.3 | |||||
Selling, general and administrative expenses | 134 | 107.2 | 377.4 | 331.3 | |||||
Pension Settlement Charges | 0 | 0.1 | 0 | 1.3 | |||||
Operating Income (Loss) | 81.7 | 57.1 | 218.1 | 186 | |||||
Income (Loss) Before Income Taxes | 75.2 | 49.2 | 202.7 | 213.8 | |||||
Provision (benefit) for income taxes | 21.1 | 15.2 | 28.5 | 65.8 | |||||
Net Income | 54.1 | 34 | 174.2 | 148 | |||||
Net Income (Loss) Attributable to Parent | $ 53.5 | $ 33.6 | $ 174.2 | $ 147.7 | |||||
Basic earnings per share | $ 0.69 | $ 0.43 | $ 2.24 | $ 1.87 | |||||
Diluted earnings per share | $ 0.68 | $ 0.43 | $ 2.21 | $ 1.86 | |||||
Foreign currency translation adjustments | $ 10.9 | $ 3.7 | $ 42.8 | $ 5.2 | |||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 0.1 | 0.4 | 0.2 | 1.2 | |||||
Other comprehensive income | 9 | 4.1 | 38.8 | 4.8 | |||||
Comprehensive Income | 63.1 | 38.1 | 213 | 152.8 | |||||
Less: comprehensive (loss) income attributable to noncontrolling interest | 0.5 | 1 | 1.9 | 2.2 | |||||
Comprehensive Income attributable to The Timken Company | 62.6 | 37.1 | 211.1 | 150.6 | |||||
Inventories, net | 687.5 | 687.5 | $ 553.7 | ||||||
Total Current Assets | 1,474.3 | 1,474.3 | 1,211.9 | ||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 47.9 | 47.9 | 51.4 | ||||||
Total Other Assets | 1,047.1 | 1,047.1 | 746.9 | ||||||
Total Assets | 3,363.6 | 3,363.6 | 2,763.2 | ||||||
Retained Earnings (Accumulated Deficit) | 1,400.2 | 1,400.2 | 1,289.3 | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41) | (51.7) | (41) | (51.7) | $ (50.1) | (77.9) | $ (55.2) | $ (54.6) | |
Total Shareholders' Equity | 1,423 | 1,423 | 1,279.7 | ||||||
Noncontrolling Interest | 32.9 | 32.9 | 31.2 | ||||||
Total Equity | 1,455.9 | 1,455.9 | 1,310.9 | ||||||
Deferred income tax provision | 7.5 | 4.6 | |||||||
Pension and other postretirement expense | 12.6 | 14.5 | |||||||
Liabilities and Equity | 3,363.6 | 3,363.6 | 2,763.2 | ||||||
AOCI Attributable to Parent [Member] | |||||||||
Foreign currency translation adjustments | 40.9 | ||||||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 0.2 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41) | (41) | |||||||
Earnings invested in the business | $ 244 | ||||||||
Retained Earnings [Member] | |||||||||
Earnings invested in the business | 239 | ||||||||
Scenario, Previous Accounting Guidance [Member] | |||||||||
Cost of products sold | 556.7 | 1,630.9 | |||||||
Gross Profit | 214.7 | 594.9 | |||||||
Selling, general and administrative expenses | 136.8 | 383.8 | |||||||
Pension Settlement Charges | 3.9 | 15.7 | |||||||
Operating Income (Loss) | 72.7 | 191.6 | |||||||
Income (Loss) Before Income Taxes | 66.2 | 176.2 | |||||||
Provision (benefit) for income taxes | 18 | 19.3 | |||||||
Net Income | 48.2 | 156.9 | |||||||
Net Income (Loss) Attributable to Parent | $ 47.6 | $ 156.9 | |||||||
Basic earnings per share | $ 0.61 | $ 2.02 | |||||||
Diluted earnings per share | $ 0.60 | $ 1.99 | |||||||
Foreign currency translation adjustments | $ 10.9 | $ 42.8 | |||||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | (6) | (17.5) | |||||||
Other comprehensive income | 14.9 | 56.1 | |||||||
Comprehensive Income | 63.1 | 213 | |||||||
Less: comprehensive (loss) income attributable to noncontrolling interest | 0.5 | 1.9 | |||||||
Comprehensive Income attributable to The Timken Company | 62.6 | 211.1 | |||||||
Inventories, net | 679.6 | 679.6 | |||||||
Total Current Assets | 1,466.4 | 1,466.4 | |||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 50.9 | 50.9 | |||||||
Total Other Assets | 1,050.1 | 1,050.1 | |||||||
Total Assets | 3,358.7 | 3,358.7 | |||||||
Retained Earnings (Accumulated Deficit) | 1,622.2 | 1,622.2 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (267.8) | (267.8) | |||||||
Total Shareholders' Equity | 1,418.2 | 1,418.2 | |||||||
Noncontrolling Interest | 32.8 | 32.8 | |||||||
Total Equity | 1,451 | 1,451 | |||||||
Deferred income tax provision | (1.7) | ||||||||
Pension and other postretirement expense | 39.1 | ||||||||
Liabilities and Equity | 3,358.7 | 3,358.7 | 2,758.3 | ||||||
Scenario, Previously Reported [Member] | |||||||||
Cost of products sold | 489.9 | 1,484.3 | |||||||
Gross Profit | 167.5 | 530.7 | |||||||
Selling, general and administrative expenses | 109.5 | 338 | |||||||
Pension Settlement Charges | 10.3 | 11.9 | |||||||
Operating Income (Loss) | 42.4 | 162.1 | |||||||
Income (Loss) Before Income Taxes | 34.5 | 189.9 | |||||||
Provision (benefit) for income taxes | 13.5 | 61.1 | |||||||
Net Income | 21 | 128.8 | |||||||
Net Income (Loss) Attributable to Parent | $ 20.6 | $ 128.5 | |||||||
Basic earnings per share | $ 0.26 | $ 1.63 | |||||||
Diluted earnings per share | $ 0.26 | $ 1.62 | |||||||
Foreign currency translation adjustments | $ 2.2 | $ (1.4) | |||||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | (15) | (27) | |||||||
Other comprehensive income | 17.2 | 24 | |||||||
Comprehensive Income | 38.2 | 152.8 | |||||||
Less: comprehensive (loss) income attributable to noncontrolling interest | 0.9 | 2.1 | |||||||
Comprehensive Income attributable to The Timken Company | 37.3 | 150.7 | |||||||
Inventories, net | 545.8 | ||||||||
Total Current Assets | 1,204 | ||||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 54.4 | ||||||||
Total Other Assets | 749.9 | ||||||||
Total Assets | 2,758.3 | ||||||||
Retained Earnings (Accumulated Deficit) | 1,528.6 | ||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (322) | ||||||||
Total Shareholders' Equity | 1,274.9 | ||||||||
Noncontrolling Interest | 31.1 | ||||||||
Total Equity | 1,306 | ||||||||
Deferred income tax provision | (0.1) | ||||||||
Pension and other postretirement expense | 38.4 | ||||||||
Restatement Adjustment [Member] | |||||||||
Cost of products sold | (2.3) | (2.2) | (4.4) | (6.6) | |||||
Gross Profit | 2.3 | 2.2 | 4.4 | 6.6 | |||||
Selling, general and administrative expenses | (2.8) | (2.3) | (6.4) | (6.7) | |||||
Pension Settlement Charges | (3.9) | (10.2) | (15.7) | (10.6) | |||||
Operating Income (Loss) | 9 | 14.7 | 26.5 | 23.9 | |||||
Income (Loss) Before Income Taxes | 9 | 14.7 | 26.5 | 23.9 | |||||
Provision (benefit) for income taxes | 3.1 | 1.7 | 9.2 | 4.7 | |||||
Net Income | 5.9 | 13 | 17.3 | (19.2) | |||||
Net Income (Loss) Attributable to Parent | $ 5.9 | $ 13 | $ 17.3 | $ (19.2) | |||||
Basic earnings per share | $ 0.08 | $ 0.17 | $ 0.22 | $ 0.24 | |||||
Diluted earnings per share | $ 0.08 | $ 0.17 | $ 0.22 | $ 0.24 | |||||
Foreign currency translation adjustments | $ 0 | $ 1.5 | $ 0 | $ 6.6 | |||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 5.9 | 14.6 | 17.3 | 25.8 | |||||
Other comprehensive income | (5.9) | (13.1) | (17.3) | (19.2) | |||||
Comprehensive Income | 0 | (0.1) | 0 | 0 | |||||
Less: comprehensive (loss) income attributable to noncontrolling interest | 0 | 0.1 | 0 | 0.1 | |||||
Comprehensive Income attributable to The Timken Company | 0 | $ (0.2) | 0 | (0.1) | |||||
Inventories, net | 7.9 | 7.9 | 7.9 | ||||||
Total Current Assets | 7.9 | 7.9 | 7.9 | ||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | (3) | (3) | (3) | ||||||
Total Other Assets | (3) | (3) | (3) | ||||||
Total Assets | 4.9 | 4.9 | $ 5 | 4.9 | |||||
Retained Earnings (Accumulated Deficit) | (222) | (222) | (239.3) | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 226.8 | 226.8 | 244.1 | ||||||
Total Shareholders' Equity | 4.8 | 4.8 | 4.8 | ||||||
Noncontrolling Interest | 0.1 | 0.1 | 0.1 | ||||||
Total Equity | 4.9 | 4.9 | 4.9 | ||||||
Deferred income tax provision | 9.2 | 4.7 | |||||||
Pension and other postretirement expense | (26.5) | $ (23.9) | |||||||
Liabilities and Equity | $ 4.9 | $ 4.9 | $ 4.9 |
Recent Accounting Pronounceme44
Recent Accounting Pronouncements Table (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (Decrease) in Other Accrued Liabilities | $ 15.9 | $ (17.5) | ||
Cumulative Effect on Retained Earnings, before Tax | 0.9 | |||
Cumulative Effect on Retained Earnings, Tax | $ 21.1 | $ 15.2 | 28.5 | 65.8 |
Adjustments for New Accounting Pronouncement [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase (Decrease) in Other Accrued Liabilities | $ 1.6 | |||
Cumulative Effect on Retained Earnings, Tax | $ 1.9 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Acquisitions Narrative (Details) - USD ($) $ in Millions | Jul. 05, 2017 | Jul. 03, 2017 | May 05, 2017 | Apr. 03, 2017 | Oct. 31, 2016 | Jul. 08, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | ||||||||||
Property, plant and equipment | $ 16.5 | $ 16.5 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 5.1 | 5.3 | ||||||||
Asset Impairment Charges | 0 | $ 3.8 | ||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.2 | 2.2 | ||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 0.6 | |||||||||
Goodwill | 28.8 | $ 29.9 | ||||||||
Groeneveld [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 3, 2017 | |||||||||
PT Tech [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Effective Date of Acquisition | May 5, 2017 | |||||||||
Torsion Control Products [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Effective Date of Acquisition | Apr. 3, 2017 | |||||||||
2017 Acquisitions [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 146.2 | $ 29 | ||||||||
Property, plant and equipment | 31.6 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 4.7 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2 | |||||||||
Cash Acquired from Acquisition | 35 | |||||||||
Goodwill | 147.6 | |||||||||
Business Combination, Consideration Transferred | 346.6 | |||||||||
Business Combination, Acquisition Related Costs | $ 3.6 | |||||||||
EDT [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2016 | |||||||||
Lovejoy [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 8, 2016 | |||||||||
ABC Bearings [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 5, 2017 |
Acquisitions and Divestitures46
Acquisitions and Divestitures - Purchase Price Allocation Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||
Document Period End Date | Sep. 30, 2017 | |
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 175.3 | |
Accounts receivable | 8.4 | $ 8.4 |
Inventories | 17.8 | 17.8 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 5.1 | 5.3 |
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 0.6 | |
Property, plant and equipment | 16.5 | 16.5 |
Goodwill | 28.8 | 29.9 |
Other intangible assets | 27.9 | 27.9 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0.1 | 0.1 |
Total assets acquired | 104.6 | 105.9 |
Accounts payable, trade | 8.1 | 8.1 |
Salaries, wages and benefits | 1.3 | 1.3 |
Other current liabilities | 3.8 | 4.4 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.2 | 2.2 |
Deferred Taxes, Business Combination, Valuation Allowance, Available to Reduce Goodwill | 10.4 | 10.4 |
Other non-current liabilities | 6.3 | 7.6 |
Total liabilities assumed | 32.1 | 34 |
Net assets acquired | 72.5 | $ 71.9 |
Goodwill, Purchase Accounting Adjustments | $ (1.1) | |
Know-how [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Intangible Assets, Weighted Average Life | 16 years | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 29.9 | |
Computer Software, Intangible Asset [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Intangible Assets, Weighted Average Life | 3 years | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1.4 | |
Noncompete Agreements [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Intangible Assets, Weighted Average Life | 5 years | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 0.2 | |
Customer Relationships [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Intangible Assets, Weighted Average Life | 17 years | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 108.2 | |
Trade names [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Intangible Assets, Weighted Average Life | 13 years | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2.2 | |
Groeneveld [Member] | Trade names [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Intangible Assets, Weighted Average Life | 0 years | |
2017 Acquisitions [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Accounts receivable | $ 27.6 | |
Inventories | 29.1 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 4.7 | |
Property, plant and equipment | 31.6 | |
Goodwill | 147.6 | |
Other intangible assets | 175.3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1.9 | |
Total assets acquired | 417.8 | |
Accounts payable, trade | 9.5 | |
Salaries, wages and benefits | 5.8 | |
Other current liabilities | 8.2 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 42.4 | |
Other non-current liabilities | 2.3 | |
Total liabilities assumed | 71.2 | |
Net assets acquired | 346.6 | |
Short-term Debt [Member] | 2017 Acquisitions [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Other current liabilities | 1 | |
Other Current Liabilities [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | (0.6) | |
Assets, Total [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | (1.3) | |
Liabilities, Total [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | (1.9) | |
Other Noncurrent Liabilities [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Financial Liabilities | (1.3) | |
Other Current Assets [Member] | ||
Business Acquisition Purchase price allocation identifiable intangible assets | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ (0.2) |
Acquisitions and Divestitures47
Acquisitions and Divestitures - Fair Value of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 175.3 | |
Business Acquisition Purchase Price Allocation Assets [Abstract] | ||
Accounts receivable | 8.4 | $ 8.4 |
Inventories | 17.8 | 17.8 |
Property, plant and equipment | 16.5 | 16.5 |
Goodwill | 28.8 | 29.9 |
Other intangible assets | 27.9 | 27.9 |
Total assets acquired | 104.6 | 105.9 |
Liabilities: | ||
Accounts payable, trade | 8.1 | 8.1 |
Salaries, wages and benefits | 1.3 | 1.3 |
Other current liabilities | 3.8 | 4.4 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.2 | 2.2 |
Other non-current liabilities | 6.3 | 7.6 |
Total liabilities assumed | 32.1 | 34 |
Net assets acquired | 72.5 | $ 71.9 |
Trade names [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 33.4 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 2.2 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 13 years | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 108.2 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 17 years | |
Noncompete Agreements [Member] | ||
Business Acquisition [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 | |
Know How [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 29.9 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 16 years | |
Computer Software, Intangible Asset [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1.4 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 years |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures - Divestitures Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 771.4 | $ 657.4 | $ 2,225.8 | $ 2,015 |
Asset Impairment Charges | $ 0 | $ 3.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Inventories, net: | ||
Manufacturing supplies | $ 29.5 | $ 28.2 |
Raw materials | 85.7 | 54.9 |
Work in process | 238.4 | 182.9 |
Finished products | 367.4 | 308.8 |
Subtotal | 721 | 574.8 |
Allowance for obsolete and surplus inventory | (33.5) | (21.1) |
Total Inventories, net | $ 687.5 | $ 553.7 |
Inventories (Details Textual)
Inventories (Details Textual) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Percentage of LIFO Inventory | 45.00% | ||
Percentage of FIFO Inventory | 55.00% | ||
Inventory Reserve (LIFO) | $ 167.4 | $ 179.5 | |
Increase (decrease) in Inventory Reserve (LIFO) | $ 12.1 | $ 0.2 |
Property, Plant and Equipment51
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment: | ||
Land and buildings | $ 478.2 | $ 425.4 |
Machinery and equipment | 1,882.4 | 1,807.6 |
Subtotal | 2,360.6 | 2,233 |
Accumulated depreciation | (1,518.4) | (1,428.6) |
Property, Plant and Equipment, net | $ 842.2 | $ 804.4 |
Property, Plant and Equipment52
Property, Plant and Equipment (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Property Plant and Equipment (Textual) [Abstract] | ||
Depreciation expense | $ 73.3 | $ 71.1 |
Goodwill and Other Intangible53
Goodwill and Other Intangible Assets (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Line Items] | |
Goodwill, Acquired During Period | $ 146.5 |
Goodwill, Purchase Accounting Adjustments | (1.1) |
Goodwill, Foreign Currency Translation Gain (Loss) | (6.3) |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 357.5 |
Goodwill, Ending Balance | 510.3 |
Mobile Industries [Member] | |
Goodwill [Line Items] | |
Goodwill, Acquired During Period | 147.6 |
Goodwill, Foreign Currency Translation Gain (Loss) | 4 |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 97.2 |
Goodwill, Ending Balance | 248.8 |
Process Industries [Member] | |
Goodwill [Line Items] | |
Goodwill, Purchase Accounting Adjustments | (1.1) |
Goodwill, Foreign Currency Translation Gain (Loss) | 2.3 |
Change in the carrying amount of Goodwill | |
Goodwill, Beginning Balance | 260.3 |
Goodwill, Ending Balance | $ 261.5 |
Goodwill and Other Intangible54
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | $ 729.6 | $ 575.8 |
Intangible assets, Accumulated Amortization | 363.2 | 332.9 |
Intangible assets, Net Carrying Amount | 366.4 | 242.9 |
Intangible assets not subject to amortization: | ||
Indefinite Lived Intangible Assets Net | 62.5 | 28.1 |
Total intangible assets, Gross Carrying Amount | 792.1 | 603.9 |
Total intangible assets, Net Carrying Amount | 428.9 | 271 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 322.4 | 211.4 |
Intangible assets, Accumulated Amortization | 97.6 | 84.4 |
Intangible assets, Net Carrying Amount | 224.8 | 127 |
Technology-Based Intangible Assets [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 126.4 | 95.2 |
Intangible assets, Accumulated Amortization | 29.9 | 25.4 |
Intangible assets, Net Carrying Amount | 96.5 | 69.8 |
Trademarks [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 8.6 | 6.5 |
Intangible assets, Accumulated Amortization | 4.2 | 3.8 |
Intangible assets, Net Carrying Amount | 4.4 | 2.7 |
Computer Software, Intangible Asset [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 260 | 251.7 |
Intangible assets, Accumulated Amortization | 223.4 | 211.8 |
Intangible assets, Net Carrying Amount | 36.6 | 39.9 |
Unclassified Indefinite-lived Intangible Assets [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 12.2 | 11 |
Intangible assets, Accumulated Amortization | 8.1 | 7.5 |
Intangible assets, Net Carrying Amount | 4.1 | 3.5 |
Trade name [Member] | ||
Intangible assets not subject to amortization: | ||
Trade name | 53.8 | 19.4 |
Air Transportation Equipment [Member] | ||
Intangible assets not subject to amortization: | ||
FAA air agency certificates | $ 8.7 | $ 8.7 |
Goodwill and Other Intangible55
Goodwill and Other Intangible Assets (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | $ 146.5 | ||
Goodwill, Purchase Accounting Adjustments | (1.1) | ||
Goodwill and Other Intangible Assets (Textual) [Abstract] | |||
Amortization expense for intangible assets | 29.2 | $ 27.2 | |
Future Amortization Expense Year 2015 | 40.5 | ||
Future Amortization Expense Year 2016 | 39.8 | ||
Future Amortization Expense Year 2017 | 36 | ||
Future Amortization Expense Year 2018 | 29.9 | ||
Future Amortization Expense Year 2019 | $ 27.3 | ||
Process Industries [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ 0.6 | ||
2017 Acquisitions [Member] | |||
Goodwill and Other Intangible Assets (Textual) [Abstract] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||
Mobile Industries [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | $ 147.6 | ||
2016 Acquisitions [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Purchase Accounting Adjustments | $ 1.7 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | |
Short-term debt | ||
Short-term debt | $ 41.1 | $ 19.2 |
Line of Credit Accounts Receivable Securitization [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.07% | 1.65% |
Line of Credit Facility, Interest Rate at Period End | 2.07% | |
Line of Credit [Member] | Line of Credit Accounts Receivable Securitization [Member] | ||
Short-term debt | ||
Short-term debt | $ 5.6 | $ 0 |
Line of Credit [Member] | Foreign Subsidiary [Member] | ||
Short-term debt | ||
Short-term debt | $ 35.5 | $ 19.2 |
Euro Term Loan - Variable Rate [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1130000.00% | |
Debt Instrument, Maturity Date | Sep. 18, 2020 | |
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 | 1.59% | 1.50% |
Debt Instrument, Maturity Date | Jun. 19, 2020 | |
Euro Senior Unsecured Notes - 2.02% [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2020000.00% | |
Debt Instrument, Maturity Date | Sep. 7, 2027 | |
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 (Detai57
Financing Arrangements (Details 1) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | |
Long-term debt | ||
Total Long-term debt | $ 964.8 | $ 640 |
Less current maturities | 5 | 5 |
Long-term debt | $ 959.8 | 635 |
Senior Unsecured Notes - 3.875% [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | |
Long-term debt | ||
Total Long-term debt | $ 346.6 | $ 345.9 |
Senior Unsecured Notes - Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1.59% | 1.50% |
Line of Credit Facility, Remaining Borrowing Capacity | $ 408.8 | |
Long-term debt | ||
Total Long-term debt | $ 91.2 | $ 83.8 |
Euro Senior Unsecured Notes - 2.02% [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2020000.00% | |
Long-term debt | ||
Total Long-term debt | $ 176.5 | 0 |
Euro Term Loan - Variable Rate [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 1130000.00% | |
Long-term debt | ||
Total Long-term debt | $ 117.8 | 0 |
Series A Medium Term Note [Member] | ||
Long-term debt | ||
Total Long-term debt | 159.5 | 159.5 |
Other Long Term Debt [Member] | ||
Long-term debt | ||
Total Long-term debt | 4 | $ 1.9 |
Line of Credit Accounts Receivable Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 5.5 | |
Line of Credit Accounts Receivable Securitization [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.07% | 1.65% |
Foreign Subsidiary [Member] | Variable Rate Lines of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Stated Variable Interest Rate Low Range | 0.32% | 0.50% |
Long-term debt | ||
Line of Credit Stated Variable Interest Rate, High Range | 1.75% | 0.50% |
Foreign Subsidiary [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 212.5 | |
Line of Credit Accounts Receivable Securitization [Member] | Line of Credit [Member] | ||
Long-term debt | ||
Total Long-term debt | $ 69.2 | $ 48.9 |
Financing Arrangements (Detai58
Financing Arrangements (Details Textual) - USD ($) $ in Millions | Sep. 18, 2017 | Sep. 07, 2017 | Jul. 03, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||||||
Short-term Debt | $ 41.1 | $ 19.2 | ||||
Long-term Fixed-rate Debt, Carrying Value | 684.3 | 507.3 | ||||
Financing Arrangements (Textual) [Abstract] | ||||||
Proceeds from Issuance of Long-term Debt | 862.7 | $ 275.5 | ||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 964.8 | 640 | ||||
Debt Instrument, Interest rate | 2.02% | |||||
Accounts Receivable, less allowances (2015 - $17.2 million; 2014 - $13.7 million | $ 542.2 | 438 | ||||
Series A Medium Term Note [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 159.5 | 159.5 | ||||
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 | $ 346.6 | 345.9 | ||||
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 | |||||
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | $ 408.8 | |||||
Line of credit expiration date | Jun. 19, 2020 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 91.2 | $ 83.8 | ||||
Debt Instrument, Interest rate | 1.59% | 1.50% | ||||
Debt Instrument, Maturity Date | Jun. 19, 2020 | |||||
Euro Senior Unsecured Notes - 2.02% [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 176.5 | $ 0 | ||||
Debt Instrument, Interest rate | 2020000.00% | |||||
Debt Instrument, Maturity Date | Sep. 7, 2027 | |||||
Foreign Subsidiary [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Borrowings guarantees | $ 2 | |||||
Line of Credit 2027 Notes [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Debt Instrument, Issuance Date | Sep. 7, 2017 | |||||
Proceeds from Issuance of Long-term Debt | 150 | |||||
Debt Instrument, Maturity Date | Sep. 7, 2027 | |||||
Line of Credit Accounts Receivable Securitization [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Maximum borrowing capacity under line of credit | 100 | |||||
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | $ 5.5 | |||||
Line of credit expiration date | Nov. 30, 2018 | |||||
Line of Credit Facility, Current Borrowing Capacity | $ 80.3 | |||||
Line of Credit Facility, Fair Value of Amount Outstanding | 74.8 | |||||
Line of Credit 2020 [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Debt Instrument, Issuance Date | Sep. 18, 2017 | |||||
Proceeds from Issuance of Long-term Debt | 100 | |||||
Debt Instrument, Maturity Date | Sep. 18, 2020 | |||||
Line of Credit [Member] | Foreign Subsidiary [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Short-term Debt | 35.5 | $ 19.2 | ||||
Financing Arrangements (Textual) [Abstract] | ||||||
Maximum borrowing capacity under line of credit | 250 | |||||
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | $ 212.5 | |||||
Line of Credit Accounts Receivable Securitization [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Line of Credit Facility, Interest Rate at Period End | 2.07% | |||||
Financing Arrangements (Textual) [Abstract] | ||||||
Debt Instrument, Interest rate | 2.07% | 1.65% | ||||
Variable Rate Lines of Credit [Member] | Foreign Subsidiary [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Line of Credit stated variable interest rate, High Range | 1.75% | 0.50% | ||||
Groeneveld [Member] | ||||||
Financing Arrangements (Textual) [Abstract] | ||||||
Business Acquisition, Effective Date of Acquisition | Jul. 3, 2017 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product Warranty Expense | $ 2.6 | $ 2.4 | |
Product Warranty Accrual, Current | $ 5.4 | ||
Standard and Extended Product Warranty Accrual, Decrease for Payments | 2.1 | 0.9 | |
Standard Product Warranty Accrual | $ 7.4 | $ 6.9 |
Equity (Details)
Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | |
Common Stock, Value, Outstanding | $ 53.1 | $ 53.1 | $ 53.1 | |||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (0.2) | |||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (2) | $ 0 | (4.2) | $ (1.6) | ||||
Treasury Stock, Value | 887.5 | 887.5 | 891.7 | |||||
Stockholders' Equity Attributable to Noncontrolling Interest | 32.9 | 32.9 | 31.2 | |||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 0.5 | 0.5 | ||||||
Shareholding pattern | ||||||||
Beginning Balance | 1,310.9 | |||||||
Net income | 54.1 | 34 | 174.2 | 148 | ||||
Net (loss) income attributable to noncontrolling interest | 0.6 | 0.4 | 0 | 0.3 | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 10.9 | 3.7 | 42.8 | 5.2 | ||||
Net Income (loss) attributable to The Timken Company | 53.5 | 33.6 | 174.2 | 147.7 | ||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 0.1 | 0.4 | 0.2 | 1.2 | ||||
Dividends - $0.26 per share | (62.4) | |||||||
Stock-based compensation expense | 18.2 | |||||||
Payments for Repurchase of Common Stock | (41) | (83.3) | ||||||
Stock option exercise activity | (27.7) | |||||||
Restricted shares surrendered (issued) | 0 | |||||||
Shares surrendered for taxes | (10.8) | (1.6) | ||||||
Ending Balance | 1,455.9 | 1,455.9 | ||||||
Additional Paid in Capital, Common Stock | 898.2 | 898.2 | 906.9 | |||||
Retained Earnings (Accumulated Deficit) | 1,400.2 | 1,400.2 | 1,289.3 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41) | $ (51.7) | (41) | $ (51.7) | $ (50.1) | $ (77.9) | $ (55.2) | $ (54.6) |
Stated Capital [Member] | ||||||||
Common Stock, Value, Outstanding | 53.1 | 53.1 | ||||||
Other Paid-In Capital [Member] | ||||||||
Shareholding pattern | ||||||||
Stock-based compensation expense | 18.2 | |||||||
Stock option exercise activity | (9.7) | |||||||
Restricted shares surrendered (issued) | (18.6) | |||||||
Additional Paid in Capital, Common Stock | 898.2 | 898.2 | ||||||
Earnings Invested in the Business [Member] | ||||||||
Shareholding pattern | ||||||||
Dividends - $0.26 per share | (62.4) | |||||||
Retained Earnings (Accumulated Deficit) | 1,400.2 | 1,400.2 | ||||||
Accumulated Other Comprehensive (Loss) [Member] | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (4.2) | |||||||
Shareholding pattern | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 40.9 | |||||||
Pension and postretirement liability adjustment (net of the income tax benefit of $1.5 million) | 0.2 | |||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (41) | (41) | ||||||
Treasury Stock [Member] | ||||||||
Treasury Stock, Value | (887.5) | (887.5) | ||||||
Shareholding pattern | ||||||||
Payments for Repurchase of Common Stock | (41) | |||||||
Stock option exercise activity | (37.4) | |||||||
Restricted shares surrendered (issued) | 18.6 | |||||||
Shares surrendered for taxes | (10.8) | |||||||
Noncontrolling Interest [Member] | ||||||||
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (0.2) | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | 32.9 | 32.9 | ||||||
Shareholding pattern | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1.9 | |||||||
Adjustments for New Accounting Pronouncement [Member] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | (0.9) | (0.9) | ||||||
Adjustments for New Accounting Pronouncement [Member] | Stated Capital [Member] | ||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1.4 | $ 1.4 |
Equity (Details Textual)
Equity (Details Textual) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)$ / shares | |
Equity (Textual) [Abstract] | |
Pension and postretirement liability adjustment, Tax | $ | $ 0.1 |
Dividend per share | $ / shares | $ 0.80 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | $ 6.9 | $ 3.2 | $ 35.7 | $ 2.7 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1 | 1.2 | 0.7 | 1.9 |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (50.1) | (55.2) | (77.9) | (54.6) |
Income tax (benefit) expense | 1.1 | (0.3) | 2.4 | 0.2 |
Net current period other comprehensive (loss) income, net of income taxes | 9 | 4.1 | 38.8 | 4.8 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0.1 | (0.6) | (1.9) | (1.9) |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 9.1 | 3.5 | 36.9 | 2.9 |
Ending Balance | (41) | (51.7) | (41) | (51.7) |
Foreign currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 10.9 | 3.7 | 42.8 | 5.2 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (49.9) | (55.1) | (79.8) | (55.3) |
Income tax (benefit) expense | 0 | 0 | 0 | 0 |
Net current period other comprehensive (loss) income, net of income taxes | 10.9 | 3.7 | 42.8 | 5.2 |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0.1 | (0.6) | (1.9) | (1.9) |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | 11 | 3.1 | 40.9 | 3.3 |
Ending Balance | (38.9) | (52) | (38.9) | (52) |
Pension and postretirement liability adjustment [Member] | ||||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0.1 | 0.7 | 0.3 | 2 |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | 1.6 | 1.2 | 1.5 | 0.4 |
Income tax (benefit) expense | 0 | (0.3) | (0.1) | (0.8) |
Net current period other comprehensive (loss) income, net of income taxes | 0.1 | 0.4 | 0.2 | 1.2 |
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 | 0.4 | 0.2 | 1.2 |
Ending Balance | 1.7 | 1.6 | 1.7 | 1.6 |
Derivative financial instruments fair value adjustment [Member] | ||||
Accumulated Other Comprehensive Income Components Reclassification [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (4) | (0.5) | (7.1) | (2.5) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0.9 | 0.5 | 0.4 | (0.1) |
Accumulated Other Comprehensive Income [Roll Forward] | ||||
Beginning Balance | (1.8) | (1.3) | 0.4 | 0.3 |
Income tax (benefit) expense | 1.1 | 0 | 2.5 | 1 |
Net current period other comprehensive (loss) income, net of income taxes | (2) | 0 | (4.2) | (1.6) |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 |
Accumulated Other Comprehensive Income (Loss) Attributable to Spinoff | (2) | 0 | (4.2) | (1.6) |
Ending Balance | $ (3.8) | $ (1.3) | $ (3.8) | $ (1.3) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Numerator: | ||||
Income (Loss) from Continuing Operations Attributable to Parent | $ 53.5 | $ 33.6 | $ 174.2 | $ 147.7 |
Less Undistributed Earnings (Loss) Allocated to Nonvested Stock | $ 0 | $ 0 | $ 0 | $ 0 |
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ 53,500,000 | $ 33,600,000 | $ 174,200,000 | $ 147,700,000 |
Denominator: | ||||
Weighted Average Number of Shares Outstanding, Basic | 77,694,974 | 77,935,783 | 77,766,828 | 78,808,179 |
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1,109,322 | 681,693 | 1,123,102 | 663,577 |
Weighted average number of shares outstanding, assuming dilution of stock options and awards | 78,804,296 | 78,617,476 | 78,889,930 | 79,471,756 |
Basic earnings per share | $ 0.69 | $ 0.43 | $ 2.24 | $ 1.87 |
Diluted earnings per share | $ 0.68 | $ 0.43 | $ 2.21 | $ 1.86 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share (Textual) [Abstract] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 473,694 | 2,706,711 | 529,020 | 3,080,133 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales to external customers: | ||||
Net sales | $ 771.4 | $ 657.4 | $ 2,225.8 | $ 2,015 |
Segment EBIT: | ||||
Total EBIT for reportable segments | 96.6 | 67.9 | 265 | 219 |
Unallocated corporate expenses | (12) | (10.9) | (37.8) | (34.8) |
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | 0 | (0.2) | 0 | 53.6 |
Interest expense | (10.1) | (8) | (26.5) | (25.1) |
Investment Income, Interest | 0.7 | 0.4 | 2 | 1.1 |
Income (Loss) Before Income Taxes | 75.2 | 49.2 | 202.7 | 213.8 |
Corporate Segment [Member] | ||||
Segment EBIT: | ||||
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | 0 | 53.6 | ||
Mobile Industries [Member] | ||||
Net sales to external customers: | ||||
Net sales | 422.8 | 353.1 | 1,214.2 | 1,104.1 |
Segment EBIT: | ||||
Total EBIT for reportable segments | 34.9 | 25.9 | 100.1 | 95.3 |
Process Industries [Member] | ||||
Net sales to external customers: | ||||
Net sales | 348.6 | 304.3 | 1,011.6 | 910.9 |
Segment EBIT: | ||||
Total EBIT for reportable segments | $ 61.7 | $ 42 | $ 164.9 | $ 123.7 |
Impairment and Restructuring 66
Impairment and Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | $ 1.2 | $ 3.8 | ||
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | $ 1.3 | 3.3 | $ 3.2 | 12.6 |
Business Exit Costs | 0.8 | 0.6 | 2.3 | |
Total | 1.3 | 5.3 | 3.8 | 18.7 |
Mobile Industries [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | 1.2 | 3.8 | ||
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | 1.3 | 2.9 | 3.1 | 7.7 |
Business Exit Costs | 0.3 | 0.1 | 1.6 | |
Total | 1.3 | 4.4 | 3.2 | 13.1 |
Process Industries [Member] | ||||
Restructuring and Related Cost [Line Items] | ||||
Tangible Asset Impairment Charges | 0 | 0 | ||
Impairment and Restructuring Charges for the Mobile Segment | ||||
Severance Costs | 0 | 0.4 | 0.1 | 4.9 |
Business Exit Costs | 0.5 | 0 | 0.7 | |
Total | 0 | 0.9 | 0.1 | 5.6 |
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 | 0 | 0 |
Business Exit Costs | 0 | 0.5 | 0 | |
Total | $ 0 | $ 0 | $ 0.5 | $ 0 |
Impairment and Restructuring 67
Impairment and Restructuring Charges (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Tangible Asset Impairment Charges | $ 1.2 | $ 3.8 | |||
Severance Costs | $ 1.3 | 3.3 | $ 3.2 | 12.6 | |
Business Exit Costs | 0.8 | 0.6 | 2.3 | ||
Restructuring, Settlement and Impairment Provisions | 1.3 | 5.3 | 3.8 | 18.7 | |
Roll Forward consolidated restructuring accrual | |||||
Beginning Balance | 10.1 | 11.3 | $ 11.3 | ||
Expense | 3.8 | 17.8 | |||
Payments | (9.2) | (19) | |||
Ending Balance | 4.7 | 4.7 | $ 10.1 | ||
Mobile Industries [Member] | |||||
Tangible Asset Impairment Charges | 1.2 | 3.8 | |||
Severance Costs | 1.3 | 2.9 | 3.1 | 7.7 | |
Business Exit Costs | 0.3 | 0.1 | 1.6 | ||
Restructuring, Settlement and Impairment Provisions | 1.3 | 4.4 | 3.2 | 13.1 | |
Process Industries [Member] | |||||
Tangible Asset Impairment Charges | 0 | 0 | |||
Severance Costs | 0 | 0.4 | 0.1 | 4.9 | |
Business Exit Costs | 0.5 | 0 | 0.7 | ||
Restructuring, Settlement and Impairment Provisions | $ 0 | $ 0.9 | $ 0.1 | $ 5.6 |
Impairment and Restructuring 68
Impairment and Restructuring Charges (Details Textual) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Positions | Sep. 30, 2016USD ($)Positions | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Restructuring and Related Cost [Line Items] | ||||||
Exit costs | $ 0.8 | $ 0.6 | $ 2.3 | |||
Tangible Asset Impairment Charges | 1.2 | 3.8 | ||||
Severance Costs | $ 1.3 | 3.3 | 3.2 | 12.6 | ||
Restructuring, Settlement and Impairment Provisions | 1.3 | 5.3 | 3.8 | $ 18.7 | ||
Restructuring accrual | 4.7 | $ 4.7 | $ 10.1 | $ 11.3 | ||
WorkforceReduction [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Restructuring and Related Cost, Number of Positions Eliminated | Positions | 50 | 175 | ||||
Severance Costs | 0.7 | 1.7 | $ 1.5 | $ 7.7 | ||
Mobile Industries [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Exit costs | 0.3 | 0.1 | 1.6 | |||
Tangible Asset Impairment Charges | 1.2 | 3.8 | ||||
Severance Costs | 1.3 | 2.9 | 3.1 | 7.7 | ||
Restructuring, Settlement and Impairment Provisions | 1.3 | 4.4 | 3.2 | 13.1 | ||
Mobile Industries [Member] | WorkforceReduction [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Severance Costs | 2.9 | |||||
Process Industries [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Exit costs | 0.5 | 0 | 0.7 | |||
Tangible Asset Impairment Charges | 0 | 0 | ||||
Severance Costs | 0 | 0.4 | 0.1 | 4.9 | ||
Restructuring, Settlement and Impairment Provisions | 0 | 0.9 | 0.1 | 5.6 | ||
Process Industries [Member] | WorkforceReduction [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Severance Costs | 4.8 | |||||
Corporate Segment [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Exit costs | 0 | 0.5 | 0 | |||
Tangible Asset Impairment Charges | 0 | 0 | ||||
Severance Costs | 0 | 0 | 0 | 0 | ||
Restructuring, Settlement and Impairment Provisions | 0 | 0 | 0.5 | 0 | ||
Pulaski [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Restructuring, Settlement and Impairment Provisions | $ 8.1 | |||||
Pulaski [Member] | WorkforceReduction [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Restructuring and Related Cost, Number of Positions Eliminated | Positions | 120 | |||||
Severance Costs | $ 0.2 | $ 1.3 | ||||
Benoni [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Tangible Asset Impairment Charges | 0.5 | |||||
Benoni [Member] | WorkforceReduction [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Restructuring and Related Cost, Number of Positions Eliminated | Positions | 85 | |||||
Severance Costs | 0.8 | |||||
Altavista Bearing Plant [Member] [Member] | ||||||
Restructuring and Related Cost [Line Items] | ||||||
Tangible Asset Impairment Charges | 0.7 | 3.1 | ||||
Severance Costs | $ 0.2 | $ 1.7 | ||||
Restructuring, Settlement and Impairment Provisions | $ 11.5 |
Retirement Benefit Plans (Detai
Retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Lump Sum Distributions Paid | $ 4.4 | $ 0 | ||
Components of net periodic benefit cost: | ||||
Service cost | $ 3.5 | $ 3.7 | 10.4 | 11 |
Interest cost | 8.1 | 9.2 | 24.1 | 28.2 |
Expected return on plan assets | (9.9) | (10) | (29.3) | (30.3) |
Amortization of prior service cost | 0.4 | 0.5 | 1.1 | 1.3 |
Net periodic benefit cost | 2.1 | 3.4 | 10.7 | 10.2 |
Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Lump Sum Distributions Paid | 4.4 | 0 | ||
Components of net periodic benefit cost: | ||||
Service cost | 3.1 | 3.3 | 9.2 | 9.9 |
Interest cost | 6.2 | 6.6 | 18.5 | 20 |
Expected return on plan assets | (7) | (7.4) | (21) | (22.3) |
Amortization of prior service cost | 0.3 | 0.4 | 1 | 1.2 |
Net periodic benefit cost | 2.6 | 2.9 | 12.1 | 8.8 |
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Lump Sum Distributions Paid | 0 | 0 | ||
Components of net periodic benefit cost: | ||||
Service cost | 0.4 | 0.4 | 1.2 | 1.1 |
Interest cost | 1.9 | 2.6 | 5.6 | 8.2 |
Expected return on plan assets | (2.9) | (2.6) | (8.3) | (8) |
Amortization of prior service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Net periodic benefit cost | $ (0.5) | $ 0.5 | $ (1.4) | $ 1.4 |
Postretirement Benefit Plans (D
Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Components of net periodic benefit cost: | ||||
Service cost | $ 3.5 | $ 3.7 | $ 10.4 | $ 11 |
Interest cost | 8.1 | 9.2 | 24.1 | 28.2 |
Expected return on plan assets | (9.9) | (10) | (29.3) | (30.3) |
Amortization of prior service credit | 0.4 | 0.5 | 1.1 | 1.3 |
Net periodic benefit cost | 2.1 | 3.4 | 10.7 | 10.2 |
Postretirement Benefit Plans [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 0 | 0.1 | 0.1 | 0.3 |
Interest cost | 2.3 | 2.7 | 6.8 | 8.2 |
Expected return on plan assets | (1.4) | (1.6) | (4.2) | (4.9) |
Amortization of prior service credit | (0.3) | 0.2 | (0.8) | 0.7 |
Net periodic benefit cost | 0.6 | 1.4 | 1.9 | 4.3 |
Pension Plan [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 3.1 | 3.3 | 9.2 | 9.9 |
Interest cost | 6.2 | 6.6 | 18.5 | 20 |
Expected return on plan assets | (7) | (7.4) | (21) | (22.3) |
Amortization of prior service credit | 0.3 | 0.4 | 1 | 1.2 |
Net periodic benefit cost | 2.6 | 2.9 | 12.1 | 8.8 |
Foreign Plan [Member] | ||||
Components of net periodic benefit cost: | ||||
Service cost | 0.4 | 0.4 | 1.2 | 1.1 |
Interest cost | 1.9 | 2.6 | 5.6 | 8.2 |
Expected return on plan assets | (2.9) | (2.6) | (8.3) | (8) |
Amortization of prior service credit | 0.1 | 0.1 | 0.1 | 0.1 |
Net periodic benefit cost | $ (0.5) | $ 0.5 | $ (1.4) | $ 1.4 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 01, 2017 | |
Excluding discrete items [Line Items] | |||||
Unrecognized Tax Benefits | $ 14.8 | $ 14.8 | $ 39.1 | ||
Provision (benefit) for income taxes | $ 21.1 | $ 15.2 | $ 28.5 | $ 65.8 | |
Effective Income Tax Rate Reconciliation, Percent | 28.10% | 30.90% | 14.10% | 30.80% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | $ 5.6 | ||||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (1.3) | ||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ (28.6) |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | |
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | $ 11.8 | $ 19.2 | |||
Restricted cash | 3.3 | 2.7 | |||
Short-term investments | 0.2 | 2.3 | |||
Foreign currency hedges | 1.6 | 9.9 | |||
Foreign currency hedges | 3.9 | 2.1 | |||
Assets Held-for-sale, Not Part of Disposal Group, Other | $ 0.2 | $ 0.2 | |||
Impairment of Long-Lived Assets to be Disposed of | (0.2) | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | |||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 6.1 | 6.1 | |||
Impairment of Long-Lived Assets Held-for-use | (3.6) | ||||
Long Lived Assets Held and Used Fair Value | 2.5 | 2.5 | |||
Land [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Assets Held-for-sale, Not Part of Disposal Group, Other | 0.2 | 0.2 | |||
Impairment of Long-Lived Assets to be Disposed of | (0.2) | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | |||
Impairment of Long-Lived Assets Held-for-use | (0.2) | ||||
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 | |||
Impairment of Long-Lived Assets Held-for-use | (0.7) | $ (2.4) | 3.1 | ||
Long Lived Assets Held and Used Fair Value | 2.5 | $ 3.2 | 2.5 | ||
Level 1 [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | 0 | 0 | |||
Short-term investments | 0 | ||||
Level 2 [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Level 3 [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | 125.4 | 129.6 | |||
Restricted cash | 3.3 | 2.7 | |||
Short-term investments | 16.5 | 9.4 | |||
Foreign currency hedges | 1.6 | 9.9 | |||
Total Assets | 158.8 | 173.1 | |||
Foreign currency hedges | 3.9 | 2.1 | |||
Total Liabilities | 3.9 | 2.1 | |||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | 120.5 | 125 | |||
Restricted cash | 3.3 | 2.7 | |||
Short-term investments | 0 | 0 | |||
Foreign currency hedges | 0 | 0 | |||
Total Assets | 123.8 | 127.7 | |||
Foreign currency hedges | 0 | 0 | |||
Total Liabilities | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | 4.9 | 4.6 | |||
Restricted cash | 0 | ||||
Restricted Cash and Cash Equivalents | 0 | ||||
Short-term investments | 16.5 | 9.4 | |||
Foreign currency hedges | 1.6 | 9.9 | |||
Total Assets | 23 | 23.9 | |||
Foreign currency hedges | 3.9 | 2.1 | |||
Total Liabilities | 3.9 | 2.1 | |||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Cash and cash equivalents | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Foreign currency hedges | 0 | 0 | |||
Total Assets | 0 | 0 | |||
Foreign currency hedges | 0 | 0 | |||
Total Liabilities | $ 0 | $ 0 | |||
Property, Plant and Equipment [Member] | Benoni [Member] | |||||
Assets and Liabilities Measured at fair value on a recurring basis | |||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | |||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.5 | 0.5 | |||
Impairment of Long-Lived Assets Held-for-use | 0.5 | ||||
Long Lived Assets Held and Used Fair Value | $ 0 | $ 0 |
Fair Value (Details Textual)
Fair Value (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets Held For Sale Carrying Value - Fair Value Disclosure | $ 0.2 | $ 0.2 | |||
Impairment of Long-Lived Assets to be Disposed of | 0.2 | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | |||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 6.1 | 6.1 | |||
Impairment of Long-Lived Assets Held-for-use | 3.6 | ||||
Long Lived Assets Held and Used Fair Value | 2.5 | 2.5 | |||
Long-term Debt, Fair Value | $ 723.9 | $ 532.2 | |||
Long-term Fixed-rate Debt, Carrying Value | 684.3 | 507.3 | |||
Altavista Bearing Plant [Member] [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 5.6 | 5.6 | |||
Impairment of Long-Lived Assets Held-for-use | 0.7 | $ 2.4 | (3.1) | ||
Deferred Gain on Sale of Property | 1.6 | ||||
Long Lived Assets Held and Used Fair Value | 2.5 | $ 3.2 | 2.5 | ||
Land [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets Held For Sale Carrying Value - Fair Value Disclosure | 0.2 | 0.2 | |||
Impairment of Long-Lived Assets to be Disposed of | 0.2 | ||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | |||
Impairment of Long-Lived Assets Held-for-use | 0.2 | ||||
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets, Fair Value Disclosure, Recurring | $ 158.8 | $ 173.1 | |||
Property, Plant and Equipment [Member] | Benoni [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 0 | |||
Long Lived Fixed Assets Held and Used at Carrying Value - Fair Value Disclosure | 0.5 | 0.5 | |||
Impairment of Long-Lived Assets Held-for-use | (0.5) | ||||
Long Lived Assets Held and Used Fair Value | $ 0 | $ 0 |
Derivatives and Hedging Activ74
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||
Derivative, Notional Amount | $ 223.2 | $ 223.2 | $ 282.8 | ||
Foreign Currency Fair Value Hedge Asset at Fair Value | 0.3 | 0.3 | 2.3 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 1.3 | 1.3 | 7.6 | ||
Derivative Asset | 1.6 | 1.6 | 9.9 | ||
Foreign Currency Fair Value Hedge Liability at Fair Value | 2.9 | 2.9 | 0.5 | ||
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 1 | 1 | 1.6 | ||
Derivative Liability | 3.9 | 3.9 | $ 2.1 | ||
Unrealized Gain on Foreign Currency Derivatives, before Tax | (1.6) | $ (0.5) | (4.7) | $ (2.5) | |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | (2.4) | 0 | (2.4) | 0 | |
Unrealized Gain (Loss) on Price Risk Cash Flow Derivatives, before Tax | 4 | (0.5) | 7.1 | 2.5 | |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (0.9) | (0.4) | (0.2) | 0.4 | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 0 | (0.1) | (0.2) | (0.3) | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (0.9) | (0.5) | (0.4) | 0.1 | |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 2.7 | $ (0.2) | $ (5.6) | $ 4.5 |
Continued Dumping and Subsidy75
Continued Dumping and Subsidy Act (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | |
CDSOA [Abstract] | ||||||
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | $ 0 | $ (200,000) | $ 0 | $ 53,600,000 | ||
Continued Dumping and Subsidy Offset Act, distributions | $ 6,300,000 | $ 48,100,000 |