Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017USD ($)shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | TIMKEN CO |
Entity Central Index Key | 98,362 |
Document Type | 10-K |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Public Float | $ | $ 3,097,156,335 |
Entity Common Stock, Shares Outstanding | shares | 77,882,884 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 3,003.8 | $ 2,669.8 | $ 2,872.3 |
Cost of products sold | 2,193.4 | 2,001.3 | 2,052.8 |
Gross Profit | 810.4 | 668.5 | 819.5 |
Selling, general and administrative expenses | 521.4 | 470.7 | 457.7 |
Impairment and restructuring charges | 4.3 | 21.7 | 14.7 |
Gain (Loss) on Disposition of Business | 0 | 0 | (28.7) |
Pension Settlement Charges | 0 | 1.6 | 119.9 |
Operating Income | 284.7 | 174.5 | 255.9 |
Interest expense | (37.1) | (33.5) | (33.4) |
Interest income | 2.9 | 1.9 | 2.7 |
Continued Dumping And Subsidy Offset Act Receipt Net Of Expenses | 0 | 59.6 | 0 |
Other Nonoperating Income (Expense) | 9.4 | (0.9) | (7.5) |
Income Before Income Taxes | 259.9 | 201.6 | 217.7 |
Provision for income taxes | 57.6 | 60.5 | 26.3 |
Net Income | 202.3 | 141.1 | 191.4 |
Less: Net (loss) income attributable to noncontrolling interest | (1.1) | 0.3 | 2.8 |
Net Income Attributable to The Timken Company | 203.4 | 140.8 | 188.6 |
Income (Loss) from Continuing Operations Attributable to Parent | $ 203.4 | $ 140.8 | $ 188.6 |
Net Income per Common Share Attributable to The Timken Company Common Shareholders | |||
Earnings Per Share, Basic | $ 2.62 | $ 1.79 | $ 2.23 |
Earnings Per Share, Diluted | 2.58 | 1.78 | 2.21 |
Dividends per share (in dollars per share) | $ 1.07 | $ 1.04 | $ 1.03 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net Income | $ 28.1 | $ 54.1 | $ 82 | $ 38.1 | $ (6.9) | $ 34 | $ 48.2 | $ 65.8 | $ 202.3 | $ 141.1 | $ 191.4 |
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustments | 47.1 | (22.8) | (64.8) | ||||||||
Pension and postretirement liability adjustment | (1.8) | 1.1 | (2.4) | ||||||||
Change in fair value of derivative financial instruments | (3.3) | 0.1 | 1.1 | ||||||||
Other comprehensive income (loss), net of tax | 42 | (21.6) | (66.1) | ||||||||
Comprehensive Income, net of tax | 244.3 | 119.5 | 125.3 | ||||||||
Less: comprehensive income attributable to noncontrolling interest | 1.3 | 2 | 0.7 | ||||||||
Comprehensive Income Attributable to The Timken Company | $ 243 | $ 117.5 | $ 124.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and cash equivalents | $ 121.6 | $ 148.8 |
Restricted cash | 3.8 | 2.7 |
Accounts receivable, less allowances (2017 - $20.3 million; 2016 - $20.2 million) | 524.9 | 438 |
Inventories, net | 738.9 | 553.7 |
Deferred charges and prepaid expenses | 29.7 | 20.3 |
Other current assets | 81.2 | 48.4 |
Total Current Assets | 1,500.1 | 1,211.9 |
Property, Plant and Equipment, Net | 864.2 | 804.4 |
Other Assets | ||
Goodwill | 511.8 | 357.5 |
Intangible Assets, Net (Excluding Goodwill) | 420.6 | 271 |
Non-current pension assets | 19.7 | 32.1 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 61 | 51.4 |
Other non-current assets | 25 | 34.9 |
Total Other Assets | 1,038.1 | 746.9 |
Total Assets | 3,402.4 | 2,763.2 |
Current Liabilities | ||
Short-term debt | 105.4 | 19.2 |
Long-term Debt, Current Maturities | 2.7 | 5 |
Accounts payable, trade | 265.2 | 176.2 |
Salaries, wages and benefits | 127.9 | 85.9 |
Income taxes payable | 9.8 | 16.9 |
Other current liabilities | 160.7 | 149.5 |
Total Current Liabilities | 671.7 | 452.7 |
Non-Current Liabilities | ||
Long-term debt | 854.2 | 635 |
Accrued pension cost | 167.3 | 154.7 |
Accrued postretirement benefits cost | 122.6 | 131.5 |
Deferred income taxes | 44 | 3.9 |
Other non-current liabilities | 67.7 | 74.5 |
Total Non-Current Liabilities | 1,255.8 | 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 |
Common Stock, Value, Outstanding | 53.1 | 53.1 |
Other paid-in capital | 903.8 | 906.9 |
Earnings invested in the business | 1,408.4 | 1,289.3 |
Accumulated other comprehensive loss | (38.3) | (77.9) |
Treasury shares at cost (2017 - 20,672,133; 2016 - 20,925,492 shares) | (884.3) | (891.7) |
Total Shareholders’ Equity | 1,442.7 | 1,279.7 |
Noncontrolling interest | 32.2 | 31.2 |
Total Equity | 1,474.9 | 1,310.9 |
Total Liabilities and Equity | $ 3,402.4 | $ 2,763.2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowances for accounts receivable | $ 20.3 | $ 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 | 20,672,133 | 20,925,492 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities | |||
Net income attributable to The Timken Company | $ 203.4 | $ 140.8 | $ 188.6 |
Net (loss) income attributable to noncontrolling interest | (1.1) | 0.3 | 2.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 137.7 | 131.7 | 130.8 |
Impairment charges | (0.1) | (3.9) | (3.3) |
(Gain) loss on sale of assets | (2.1) | 1.6 | 11.8 |
Gain (Loss) on Disposition of Business | 0 | 0 | (28.7) |
Deferred income tax provision (benefit) | 0.4 | 15 | 22.2 |
Stock-based compensation expense | 24.7 | 14.1 | 18.4 |
Pension and other postretirement expense | (28.9) | (84) | (95.3) |
Pension and other postretirement benefit contributions | (23.9) | (24.7) | (29.8) |
Changes in operating assets and liabilities: | |||
Accounts receivable | (42.3) | 20.3 | 11.9 |
Inventories | (132.1) | 10.1 | 53.1 |
Accounts payable, trade | 70.7 | 12.2 | 11.6 |
Other accrued expenses | 36.3 | (2.8) | (47.7) |
Income taxes | (36.2) | 23.5 | (40.4) |
Other, net | (26.9) | 3.9 | 21.5 |
Net Cash Provided by Operating Activities | 236.8 | 403.9 | 380.3 |
Investing Activities | |||
Capital expenditures | (104.7) | (137.5) | (105.6) |
Acquisitions, net of cash acquired of $35.0 million in 2017, $2.5 million in 2016 and $0.1 million in 2015 | (346.8) | (72.6) | (213.3) |
Proceeds from disposals of property, plant and equipment | 7.1 | 1.5 | 9.8 |
Proceeds from Divestiture of Businesses, Net of Cash Divested | 0 | 0 | 46.2 |
Payments to Acquire Marketable Securities | 3.6 | 2.6 | 1.8 |
Other | (0.7) | 0.2 | (0.5) |
Net Cash Used in Investing Activities | (448.7) | (211) | (265.2) |
Financing Activities | |||
Cash dividends paid to shareholders | (83.3) | (81.6) | (87) |
Purchase of treasury shares | (43.4) | (101) | (309.7) |
Proceeds from exercise of stock options | 32.9 | 4.3 | 4.1 |
Payments Related to Tax Withholding for Share-based Compensation | (11.4) | (1.9) | (4) |
Proceeds from issuance of long-term debt | 927.8 | 340.5 | 265.7 |
Repayments of Long-term Debt | 684.5 | 345.3 | 190.6 |
Deferred financing costs | (1.2) | 0 | (2) |
Proceeds from Accounts Receivable Securitization | 56.7 | 50 | 116 |
Repayments of Accounts Receivable Securitization | (42.7) | (50.1) | (67) |
Short-term debt activity, net | 19.9 | 7.2 | 6 |
Increase (Decrease) in Restricted Cash | (1.2) | (2.5) | 14.8 |
Other | 2.6 | (9.1) | (6.6) |
Net Cash Provided by (Used in) Financing Activities | 167 | (171.3) | (247.1) |
Effect of exchange rate changes on cash | 17.7 | (2.4) | (17.2) |
(Decrease) increase In Cash and Cash Equivalents | (27.2) | 19.2 | (149.2) |
Cash and cash equivalents at beginning of year | 148.8 | 129.6 | 278.8 |
Cash and Cash Equivalents at End of Year | $ 121.6 | $ 148.8 | $ 129.6 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Amount of Cash Acquired | $ 35 | $ 2.5 | $ 0.1 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Stated Capital | Other Paid-In Capital | Earnings Invested in the Business | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Noncontrolling Interest | Holme Service Limited [Member] | Holme Service Limited [Member]Noncontrolling Interest |
Beginning Balance at Dec. 31, 2014 | $ 1,594.3 | $ 53.1 | $ 899.4 | $ 1,128.5 | $ 9.4 | $ (509.2) | $ 13.1 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | 191.4 | 188.6 | 2.8 | ||||||
Foreign currency translation adjustments | (64.8) | (62.7) | (2.1) | ||||||
Pension and postretirement liability adjustment (net of income tax of $6.2 million, $13.1 million and $1.1 million for 2015, 2016 and 2017, respectively) | (2.4) | (2.4) | |||||||
Change in fair value of derivative financial instruments, net of reclassifications | 1.1 | 1.1 | |||||||
Payments to Acquire Interest in Joint Venture | 6.9 | $ 6.6 | $ 6.6 | ||||||
Dividends declared to noncontrolling interest | (0.2) | (0.2) | |||||||
Dividends - $1.03, $1.04 and $1.07 per share for 2015, 2016 and 2017, respectively | (87) | (87) | |||||||
Tax shortfall from stock compensation | (1.5) | (1.5) | |||||||
Stock-based compensation expense | 18.4 | 18.4 | |||||||
Purchase of treasury shares | (309.7) | (309.7) | |||||||
Stock option exercise activity | 4.2 | (7.5) | 11.7 | ||||||
Restricted share activity | 0.2 | (6.7) | 6.9 | ||||||
Ending Balance at Dec. 31, 2015 | 1,349.6 | 53.1 | 905.1 | 1,230.1 | (54.6) | (804.3) | 20.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Payments Related to Tax Withholding for Share-based Compensation | (4) | (4) | |||||||
Net income (loss) | 141.1 | 140.8 | 0.3 | ||||||
Foreign currency translation adjustments | (22.8) | (24.5) | 1.7 | ||||||
Pension and postretirement liability adjustment (net of income tax of $6.2 million, $13.1 million and $1.1 million for 2015, 2016 and 2017, respectively) | 1.1 | 1.1 | |||||||
Change in fair value of derivative financial instruments, net of reclassifications | 0.1 | 0.1 | |||||||
Payments to Acquire Interest in Joint Venture | 9.7 | $ 9.3 | $ 9.3 | ||||||
Dividends declared to noncontrolling interest | (0.3) | (0.3) | |||||||
Dividends - $1.03, $1.04 and $1.07 per share for 2015, 2016 and 2017, respectively | (81.6) | (81.6) | |||||||
Adjustments to Additional Paid in Capital, Income Tax Deficiency from Share-based Compensation | (1.1) | (1.1) | |||||||
Stock-based compensation expense | 14.1 | 14.1 | |||||||
Purchase of treasury shares | (101) | (101) | |||||||
Stock option exercise activity | 4.3 | (2.5) | 6.8 | ||||||
Restricted share activity | 0 | (8.7) | 8.7 | ||||||
Ending Balance at Dec. 31, 2016 | 1,310.9 | 53.1 | 906.9 | 1,289.3 | (77.9) | (891.7) | 31.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Payments Related to Tax Withholding for Share-based Compensation | (1.9) | (1.9) | |||||||
Net income (loss) | 202.3 | 203.4 | (1.1) | ||||||
Foreign currency translation adjustments | 47.1 | 44.7 | 2.4 | ||||||
Pension and postretirement liability adjustment (net of income tax of $6.2 million, $13.1 million and $1.1 million for 2015, 2016 and 2017, respectively) | (1.8) | (1.8) | |||||||
Change in fair value of derivative financial instruments, net of reclassifications | (3.3) | (3.3) | |||||||
Dividends declared to noncontrolling interest | (0.3) | (0.3) | |||||||
Dividends - $1.03, $1.04 and $1.07 per share for 2015, 2016 and 2017, respectively | (83.3) | (83.3) | |||||||
Stock-based compensation expense | 24.7 | 24.7 | |||||||
Purchase of treasury shares | (43.4) | (43.4) | |||||||
Stock option exercise activity | 32.9 | (10.7) | 43.6 | ||||||
Restricted share activity | 0 | (18.6) | 18.6 | ||||||
Ending Balance at Dec. 31, 2017 | 1,474.9 | $ 53.1 | $ 903.8 | $ 1,408.4 | $ (38.3) | (884.3) | $ 32.2 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Payments Related to Tax Withholding for Share-based Compensation | $ (11.4) | $ (11.4) |
Consolidated Statements of Sha9
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension and postretirement liability adjustment, Tax | $ (1.1) | $ 13.1 | $ 6.2 |
Dividend per share | $ 1.07 | $ 1.04 | $ 1.03 |
Change in Accounting Principles
Change in Accounting Principles (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Note 2 - Change in Accounting Principle 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, 2015, the cumulative effect of the change in accounting principles resulted in a decrease of $487 million in earnings invested in the business and a corresponding increase of $492 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 for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Cost of products sold $ 2,199.0 $ 2,193.4 $ (5.6 ) Gross profit 804.8 810.4 5.6 Selling, general and administrative expenses 518.0 521.4 3.4 Pension settlement expenses 17.3 — (17.3 ) Operating income 265.2 284.7 19.5 Income before income taxes 240.4 259.9 19.5 Provision for income taxes 51.1 57.6 6.5 Net income 189.3 202.3 13.0 Net income attributable to The Timken Company $ 190.4 $ 203.4 $ 13.0 Basic earnings per share $ 2.45 $ 2.62 $ 0.17 Diluted earnings per share $ 2.41 $ 2.58 $ 0.17 Consolidated Statements of Income for the Years Ended December 31: 2016 As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 1,975.0 $ 2,001.3 $ 26.3 Gross profit 694.8 668.5 (26.3 ) Selling, general and administrative expenses 450.0 470.7 20.7 Pension settlement expenses 28.1 1.6 (26.5 ) Operating income 195.0 174.5 (20.5 ) Income before income taxes 222.1 201.6 (20.5 ) Provision for income taxes 69.2 60.5 (8.7 ) Net income 152.9 141.1 (11.8 ) Net income attributable to The Timken Company $ 152.6 $ 140.8 $ (11.8 ) Basic earnings per share $ 1.94 $ 1.79 $ (0.15 ) Diluted earnings per share $ 1.92 $ 1.78 $ (0.14 ) 2015 As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 2,078.4 $ 2,052.8 $ (25.6 ) Gross profit 793.9 819.5 25.6 Selling, general and administrative expenses 494.3 457.7 (36.6 ) Pension settlement expenses 465.0 119.9 (345.1 ) Operating income (loss) (151.4 ) 255.9 407.3 Income (loss) before income taxes (189.6 ) 217.7 407.3 Provision (benefit) for income taxes (121.6 ) 26.3 147.9 Net income (loss) (68.0 ) 191.4 259.4 Net income (loss) attributable to The Timken Company $ (70.8 ) $ 188.6 $ 259.4 Basic earnings (loss) per share $ (0.84 ) $ 2.23 $ 3.07 Diluted earnings (loss) per share $ (0.84 ) $ 2.21 $ 3.05 Consolidated Statements of Comprehensive Income for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Net Income $ 189.3 $ 202.3 $ 13.0 Pension and postretirement liability adjustment 11.2 (1.8 ) (13.0 ) Other comprehensive income, net of tax $ 55.0 $ 42.0 $ (13.0 ) Consolidated Statements of Comprehensive Income for the Years Ended December 31: 2016 As Previously Reported Revised Effect of Accounting Change Net Income $ 152.9 $ 141.1 $ (11.8 ) Foreign currency translation adjustments (32.8 ) (22.8 ) 10.0 Pension and postretirement liability adjustment (0.6 ) 1.1 1.7 Other comprehensive income, net of tax (33.3 ) (21.6 ) 11.7 Comprehensive Income, net of tax 119.6 119.5 (0.1 ) Comprehensive income attributable to The Timken Company $ 117.6 $ 117.5 $ (0.1 ) 2015 As Previously Reported Revised Effect of Accounting Change Net Income $ (68.0 ) $ 191.4 $ 259.4 Foreign currency translation adjustments (73.5 ) (64.8 ) 8.7 Pension and postretirement liability adjustment 265.9 (2.4 ) (268.3 ) Other comprehensive income, net of tax 193.5 (66.1 ) (259.6 ) Comprehensive Income, net of tax 125.5 125.3 (0.2 ) Less: comprehensive income attributable to noncontrolling interest 0.8 0.7 (0.1 ) Comprehensive income attributable to The Timken Company $ 124.7 $ 124.6 $ (0.1 ) Consolidated Balance Sheets for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Inventories, net $ 731.0 $ 738.9 $ 7.9 Total current assets 1,492.2 1,500.1 7.9 Deferred income taxes 64.0 61.0 (3.0 ) Total other assets 1,041.1 1,038.1 (3.0 ) Total assets 3,397.5 3,402.4 4.9 Earnings invested in the business 1,634.7 1,408.4 (226.3 ) Accumulated other comprehensive loss (269.4 ) (38.3 ) 231.1 Total shareholders' equity 1,437.9 1,442.7 4.8 Noncontrolling interest 32.1 32.2 0.1 Total equity 1,470.0 1,474.9 4.9 Total liabilities and shareholders' equity $ 3,397.5 $ 3,402.4 $ 4.9 Consolidated Balance Sheets for the Years Ended December 31: 2016 As Previously Reported Revised Effect of Accounting Change Inventories, net $ 545.8 $ 553.7 $ 7.9 Total current assets 1,204.0 1,211.9 7.9 Deferred income taxes 54.4 51.4 (3.0 ) Total other assets 749.9 746.9 (3.0 ) Total assets 2,758.3 2,763.2 4.9 Earnings invested in the business 1,528.6 1,289.3 (239.3 ) Accumulated other comprehensive loss (322.0 ) (77.9 ) 244.1 Total shareholders' equity 1,274.9 1,279.7 4.8 Noncontrolling interest 31.1 31.2 0.1 Total equity 1,306.0 1,310.9 4.9 Total liabilities and shareholders' equity $ 2,758.3 $ 2,763.2 $ 4.9 Consolidated Statements of Cash Flows for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Net income attributable to The Timken Company $ 190.4 $ 203.4 $ 13.0 Deferred income tax benefit (6.9 ) (0.4 ) 6.5 Pension and other postretirement expense $ 48.4 $ 28.9 $ (19.5 ) 2016 As Previously Reported Revised Effect of Accounting Change Net income attributable to The Timken Company $ 152.6 $ 140.8 $ (11.8 ) Deferred income tax benefit (6.3 ) (15.0 ) (8.7 ) Pension and other postretirement expense $ 63.5 $ 84.0 $ 20.5 2015 As Previously Reported Revised Effect of Accounting Change Net income attributable to The Timken Company $ (70.8 ) $ 188.6 $ 259.4 Deferred income tax benefit (170.1 ) (22.2 ) 147.9 Pension and other postretirement expense 502.9 95.3 (407.6 ) Inventories $ 52.8 $ 53.1 $ 0.3 Consolidated Statements of Shareholders' Equity for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Net income $ 189.3 $ 202.3 $ 13.0 Pension and postretirement liability adjustments $ 11.2 $ (1.8 ) $ (13.0 ) 2016 As Previously Reported Revised Effect of Accounting Change Net income $ 152.9 $ 141.1 $ (11.8 ) Foreign currency translation adjustment (32.8 ) (22.8 ) 10.0 Pension and postretirement liability adjustments $ (0.6 ) $ 1.1 $ 1.7 2015 As Previously Reported Revised Effect of Accounting Change Net income (loss) $ (68.0 ) $ 191.4 $ 259.4 Foreign currency translation adjustment (73.5 ) (64.8 ) 8.7 Pension and postretirement liability adjustments $ 265.9 $ (2.4 ) $ (268.3 ) |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions and Divestitures [Abstract] | |
Business Combination and Divestitures Disclosure [Text Block] | Acquisitions: The Company completed three acquisitions in 2017 . On July 3, 2017 , the Company completed the acquisition of 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, a manufacturer of engineered clutches, brakes, hydraulic power take-off units and other torque management devices used in the mining, aggregate, wood recycling and metals industries. On April 3, 2017 , the Company completed the acquisition of 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 12 months prior to their respective acquisitions totaled approximately $146.2 million . The total purchase price for these acquisitions was $346.2 million , net of $35.4 million of cash received. In 2017 , the Company incurred acquisition-related fees of $3.7 million to complete these acquisitions. 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. During 2016 , the Company completed two acquisitions. On October 31, 2016 , the Company completed the acquisition of 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, a manufacturer of premium industrial couplings and universal joints. Aggregate sales for these companies for the most recent 12 months prior to their respective acquisitions totaled approximately $61 million . The total purchase price for these acquisitions was $74.7 million in cash, net of $1.9 million of cash received, and $2.2 million in assumed debt. In 2017, the Company paid a net purchase price adjustment of $0.6 million in connection with the EDT acquisition. Also, the Company incurred approximately $1.7 million of acquisition-related fees to acquire EDT and Lovejoy. Substantially all of the results for EDT and Lovejoy are reported in the Process Industries segment. The Company assumed certain contingent liabilities, including a potential environmental liability, as part of the Lovejoy transaction. Refer to Note 11 - Contingencies for additional information on Lovejoy's contingent liabilities. On September 1, 2015 , the Company completed the acquisition of Timken Belts, a leading North American manufacturer of belts used in industrial, commercial and consumer applications, and sold under multiple brand names, including Carlisle®, Ultimax® and Panther®, among others. The acquisition portfolio includes more than 20,000 parts that utilize wrap molded, raw edge, v-ribbed and synchronous belt designs. Aggregate sales for Timken Belts for the most recent 12 months prior to the acquisition were approximately $140 million . The total purchase price for Timken Belts was $213.7 million , including cash acquired of approximately $0.1 million . In June 2016 , the Company paid a net purchase price adjustment of $0.7 million , resulting in an adjustment to goodwill. Also, the Company incurred approximately $1.0 million of acquisition-related fees to acquire Timken Belts. The results of operations for Timken Belts are reported in both the Mobile Industries and Process Industries segments based on customers served. Pro forma results of these operations have not been presented because the effects of the acquisitions were not significant to the Company’s income from operations or total assets in any of the years presented. The purchase price allocations, net of cash acquired, and any subsequent purchase price adjustments for acquisitions in 2017 , 2016 and 2015 are presented below: 2017 2016 2015 Assets: Accounts receivable $ 27.6 $ 8.4 $ 13.3 Inventories 29.4 17.8 48.5 Other current assets 3.3 5.3 1.1 Property, plant and equipment 31.5 16.5 37.9 Goodwill 149.7 30.6 70.8 Other intangible assets 173.6 27.9 63.9 Other non-current assets 1.8 0.1 — Total assets acquired $ 416.9 $ 106.6 $ 235.5 Liabilities: Accounts payable, trade $ 9.5 $ 8.1 $ 10.2 Salaries, wages and benefits 5.8 1.3 1.1 Other current liabilities 8.6 4.4 1.3 Short-term debt 0.1 — — Long-term debt 2.9 2.2 — Accrued pension cost — — 2.3 Accrued postretirement liability — — 1.1 Deferred taxes 42.2 10.4 5.9 Other non-current liabilities 1.0 7.6 — Total liabilities assumed $ 70.1 $ 34.0 $ 21.9 Net assets acquired $ 346.8 $ 72.6 $ 213.6 The amounts for 2017 in the table above represent the preliminary purchase price allocations for Groeneveld, PT Tech and Torsion Control Products. The preliminary purchase accounting for the Groeneveld acquisition is incomplete as it relates to the final determination of fair value for the contingent liabilities assumed in the acquisition and other potential post-closing indemnification adjustments. The following table summarizes the preliminary purchase price allocation for identifiable intangible assets acquired in 2017 : Weighted- Average Life Trade names (indefinite life) 31.1 Indefinite Trade names (finite life) 2.2 13 years Technology and know-how 29.8 16 years Customer relationships 108.9 17 years Other 0.2 5 years Capitalized software 1.4 3 years Total intangible assets $ 173.6 The following table summarizes the final purchase price allocation for identifiable intangible assets acquired in 2016 : Weighted- Average Life Trade names (indefinite life) $ 3.7 Indefinite Trade names (finite life) 0.2 5 years Technology and know-how 10.1 19 years Customer relationships 13.5 20 years Other 0.3 4 years Capitalized software 0.1 4 years Total intangible assets $ 27.9 On July 5, 2017 , the Company announced that the Company's majority-owned subsidiary, Timken India, entered into a definitive agreement to acquire 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, and also is listed on the BSE Limited. 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 12 months ended March 31, 2017. Divestitures: On October 21, 2015 , the Company completed the sale of Alcor. Alcor, located in Mesa, Arizona, had sales of $20.6 million for the 12 months ending September 30, 2015. The results of the operations of Alcor were reported in the Mobile Industries segment. The Company recorded proceeds of $43.4 million and recognized a gain on the sale of Alcor of $29.0 million during the fourth quarter of 2015. The gain was reflected in gain on divestiture in the Consolidated Statement of Income. On April 30, 2015 , the Company completed the sale of a service center in Niles, Ohio. The company received $2.8 million in cash proceeds for the service center. The Company recognized a loss of $0.3 million |
Investment in Joint Venture Inv
Investment in Joint Venture Investment in Joint Venture | 12 Months Ended |
Dec. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Note 4 - Investment in Joint Venture On March 6, 2014, Timken Lux Holdings II S.á r.l, a subsidiary of the Company, entered into a joint venture agreement with Holme Services Limited ("joint venture partner"). During 2015, the Company and its joint venture partner established TUBC Limited, a Cyprus entity, for the purpose of producing bearings to serve the rail market sector in Russia. The Company and its joint venture partner have a 51% controlling interest and 49% controlling interest, respectively, in TUBC Limited. During 2015 , the Company and its joint venture partner amended and restated the joint venture agreement and contributed $6.9 million and $6.6 million , respectively, to TUBC Limited. During 2016 , the Company and its joint venture partner contributed $9.7 million and $9.3 million , respectively, to TUBC Limited. No additional contributions were made during 2017. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Numerator: Net income attributable to The Timken Company $ 203.4 $ 140.8 $ 188.6 Less: undistributed earnings allocated to nonvested stock — — — Net income available to common shareholders for basic earnings per share and diluted earnings per share $ 203.4 $ 140.8 $ 188.6 Denominator: Weighted-average number of shares outstanding – basic 77,736,398 78,516,029 84,631,778 Effect of dilutive securities: Stock options and awards - based on the treasury stock method 1,174,751 718,295 714,468 Weighted-average number of shares outstanding, assuming 78,911,149 79,234,324 85,346,246 Basic earnings per share $ 2.62 $ 1.79 $ 2.23 Diluted earnings per share $ 2.58 $ 1.78 $ 2.21 The exercise prices for certain stock options that the Company has awarded exceed the average market price of the Company’s common shares. Such stock options are antidilutive and were not included in the computation of diluted earnings per share. The antidilutive stock options outstanding were 512,657 , 2,826,733 and 1,986,907 during 2017 , 2016 and 2015 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (loss) [Abstract] | |
Accumulated Other Comprehensive Income Components Reclassification [Text Block] | The following tables present details about components of accumulated other comprehensive income (loss) for the years ended December 31, 2017 and December 31, 2016 , respectively: 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 reclassifications, before income tax 47.1 (4.0 ) (7.1 ) 36.0 Amounts reclassified from accumulated other comprehensive income (loss), before income tax — 1.1 1.8 2.9 Income tax benefit (expense) — 1.1 2.0 3.1 Net current period other comprehensive income (loss), net of income taxes 47.1 (1.8 ) (3.3 ) 42.0 Non-controlling interest (2.4 ) — — (2.4 ) Net current period comprehensive income (loss), net of income taxes and non-controlling interest 44.7 (1.8 ) (3.3 ) 39.6 Balance at December 31, 2017 $ (35.1 ) $ (0.3 ) $ (2.9 ) $ (38.3 ) 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 (loss) income before reclassifications, before income tax (22.8 ) 11.4 (0.2 ) (11.6 ) Amounts reclassified from accumulated other comprehensive income (loss), before income tax — 2.8 0.3 3.1 Income tax expense — (13.1 ) — (13.1 ) Net current period other comprehensive (loss) income, net of income taxes (22.8 ) 1.1 0.1 (21.6 ) Non-controlling interest (1.7 ) — — (1.7 ) Net current period comprehensive (loss) income, net of income taxes and non-controlling interest (24.5 ) 1.1 0.1 (23.3 ) Balance at December 31, 2016 $ (79.8 ) $ 1.5 $ 0.4 $ (77.9 ) |
Other Income and Other Expense Disclosure [Text Block] | The following tables present details about components of accumulated other comprehensive income (loss) for the years ended December 31, 2017 and December 31, 2016 , respectively: 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 reclassifications, before income tax 47.1 (4.0 ) (7.1 ) 36.0 Amounts reclassified from accumulated other comprehensive income (loss), before income tax — 1.1 1.8 2.9 Income tax benefit (expense) — 1.1 2.0 3.1 Net current period other comprehensive income (loss), net of income taxes 47.1 (1.8 ) (3.3 ) 42.0 Non-controlling interest (2.4 ) — — (2.4 ) Net current period comprehensive income (loss), net of income taxes and non-controlling interest 44.7 (1.8 ) (3.3 ) 39.6 Balance at December 31, 2017 $ (35.1 ) $ (0.3 ) $ (2.9 ) $ (38.3 ) 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 (loss) income before reclassifications, before income tax (22.8 ) 11.4 (0.2 ) (11.6 ) Amounts reclassified from accumulated other comprehensive income (loss), before income tax — 2.8 0.3 3.1 Income tax expense — (13.1 ) — (13.1 ) Net current period other comprehensive (loss) income, net of income taxes (22.8 ) 1.1 0.1 (21.6 ) Non-controlling interest (1.7 ) — — (1.7 ) Net current period comprehensive (loss) income, net of income taxes and non-controlling interest (24.5 ) 1.1 0.1 (23.3 ) Balance at December 31, 2016 $ (79.8 ) $ 1.5 $ 0.4 $ (77.9 ) Other comprehensive income (loss) before reclassifications and income taxes includes the effect of foreign currency. The before-tax reclassification of pension and postretirement liability adjustments was due to the amortization of prior service costs and was included in costs of products sold and SG&A expenses in the Consolidated Statements of Income. For further information about the reclassification of the change in fair value of derivatives financial instruments, refer to Note 19 - Derivative Instruments and Hedging Activities |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory [Abstract] | |
Inventory Disclosure [Text Block] | The components of inventories at December 31, 2017 and 2016 were as follows: 2017 2016 Manufacturing supplies $ 29.0 $ 28.2 Raw materials 90.4 54.9 Work in process 245.2 182.9 Finished products 404.3 308.8 Subtotal $ 768.9 $ 574.8 Allowance for surplus and obsolete inventory (30.0 ) (21.1 ) Total Inventories, net $ 738.9 $ 553.7 Inventories at December 31, 2017 valued on the FIFO cost method were 55% and the remaining 45% were valued by the LIFO method. If all inventories had been valued at FIFO, inventories would have been $167.6 million and $179.5 million greater at December 31, 2017 and 2016 , respectively. The Company recognized a decrease in its LIFO reserve of $11.9 million during 2017 , compared to an increase in its LIFO reserve of $4.7 million during 2016 . The decrease in the LIFO reserve in 2017 was due to lower unit costs primarily driven by favorable efficiency variances that more than offset higher material and labor costs. The impacts of LIFO liquidations in 2016 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 8 - Property, Plant and Equipment The components of property, plant and equipment, net at December 31, 2017 and 2016 were as follows: 2017 2016 Land and buildings $ 483.0 $ 425.4 Machinery and equipment 1,922.6 1,807.6 Subtotal $ 2,405.6 $ 2,233.0 Less: accumulated depreciation (1,541.4 ) (1,428.6 ) Property, Plant and Equipment, net $ 864.2 $ 804.4 Total depreciation expense was $97.7 million , $95.5 million and $94.6 million in 2017 , 2016 and 2015 , respectively. During the fourth quarter of 2015, the Company wrote-off $9.7 million that remained in CIP after the related assets were placed into service. This item was identified during an examination of aged balances in the CIP account and 91% of the amount related to fiscal years prior to 2013. Net income attributable to The Timken Company in 2015 included a charge of $9.7 million ( $6.1 million , or $0.07 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 9 - Goodwill and Other Intangible Assets Goodwill: The Company tests goodwill and indefinite-lived intangible assets for impairment at least annually, performing its annual impairment test as of October 1st. Furthermore, goodwill and indefinite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. The Company reviews goodwill for impairment at the reporting unit level. The Mobile Industries segment has four reporting units and the Process Industries segment has two reporting units. Changes in the carrying value of goodwill were as follows: Year ended December 31, 2017 : Mobile Industries Process Industries Total Beginning Balance $ 97.2 $ 260.3 $ 357.5 Acquisitions 150.8 (1.1 ) 149.7 Other 6.3 (1.7 ) 4.6 Ending Balance $ 254.3 $ 257.5 $ 511.8 The Groeneveld, PT Tech and Torsion Control Products acquisitions added a total of $150.8 million of goodwill to the Mobile Industries segment. The $14.1 million of goodwill acquired through the PT Tech and Torsion Control Products acquisitions is expected to be tax deductible over 15 years . The $136.7 million of goodwill acquired through the Groeneveld acquisition 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. "Other" primarily includes foreign currency translation adjustments. Refer to Note 3 - Acquisitions and Divestitures for additional information on the acquisitions listed above. Year ended December 31, 2016 : Mobile Industries Process Industries Total Beginning Balance $ 97.0 $ 230.3 $ 327.3 Acquisitions 0.7 29.9 30.6 Other (0.5 ) 0.1 (0.4 ) Ending Balance $ 97.2 $ 260.3 $ 357.5 The increase in goodwill was due to the acquisition of Lovejoy in July 2016 and EDT in October 2016. None of this goodwill is deductible for tax purposes. The goodwill resulting from the EDT and Lovejoy acquisitions was allocated to the Process Industries segment. No goodwill impairment losses were recorded in 2017 or 2016 . Intangible Assets: The following table displays intangible assets as of December 31, 2017 and 2016 : 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject Customer relationships $ 324.6 $ 103.0 $ 221.6 $ 211.4 $ 84.4 $ 127.0 Technology and know-how 128.7 33.8 94.9 95.2 25.4 69.8 Trade names 8.6 4.3 4.3 6.5 3.8 2.7 Capitalized Software 261.5 226.5 35.0 251.7 211.8 39.9 Other 10.3 6.2 4.1 11.0 7.5 3.5 $ 733.7 $ 373.8 $ 359.9 $ 575.8 $ 332.9 $ 242.9 Intangible assets not Trade names $ 52.0 $ 52.0 $ 19.4 $ 19.4 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 60.7 $ 60.7 $ 28.1 $ 28.1 Total intangible assets $ 794.4 $ 373.8 $ 420.6 $ 603.9 $ 332.9 $ 271.0 Intangible assets acquired in 2017 totaled $173.6 million from the Groeneveld, PT Tech, and Torsion Control Products acquisitions. Intangible assets subject to amortization were assigned useful lives of two to 20 years and had a weighted- average amortization period of 16.8 years . Intangible assets acquired in 2016 totaled $27.9 million from the acquisitions of Lovejoy and EDT. Intangible assets subject to amortization acquired in 2016 were assigned useful lives of two to 20 years and had a weighted-average amortization period of 19.1 years . Amortization expense for intangible assets was $40.0 million , $ 36.2 million and $ 36.2 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Amortization expense for intangible assets is estimated to be approximately: $ 41.4 million in 2018; $ 35.5 million in 2019; $ 30.9 million in 2020; $ 27.2 million in 2021; and $ 23.1 million |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Note 10 - Financing Arrangements Short-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Variable-rate Accounts Receivable Facility with an interest rate of 2.15% at December 31, 2017 $ 62.9 $ — 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 2.22% at December 31, 2017 and 0.50% at December 31, 2016 42.5 19.2 Short-term debt $ 105.4 $ 19.2 The Company has a $100 million Accounts Receivable Facility that matures on November 30, 2018 . The Company is exploring opportunities to refinance the facility prior to its maturity. 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 that, 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 to certain borrowing base limitations. These limitations reduced the availability of the Accounts Receivable Facility to $82.3 million at December 31, 2017 . As of December 31, 2017 , there were outstanding borrowings of $62.9 million under the Accounts Receivable Facility, which reduced the availability under this facility to $19.4 million . The cost of this facility, which is the prevailing commercial paper rate plus program fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The outstanding balance under the Accounts Receivable Facility was classified as short term or long term in accordance with the terms of the agreement. In 2016, the classification of the outstanding balance reflected the Company's expectations relative to the minimum borrowing base. The yield rate was 2.15% , 1.65% and 1.05% , at December 31, 2017 , 2016 and 2015 , respectively. The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $288.9 million in the aggregate. Most of these lines of credit are uncommitted. At December 31, 2017 , the Company’s foreign subsidiaries had borrowings outstanding of $ 42.5 million and guarantees of $ 0.2 million , which reduced the aggregate availability under these facilities to $ 246.2 million . The weighted-average interest rate on these lines of credit during the year were 0.7% , 0.7% and 1.1% in 2017 , 2016 and 2015 , respectively. The weighted-average interest rate on lines of credit outstanding at December 31, 2017 and 2016 was 0.41% and 0.50% , respectively. The decrease in the weighted-average interest rate was primarily due to increased borrowings in the United States at a lower rate. Long-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Fixed-rate Medium-Term Notes, Series A, maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% $ 154.5 $ 159.5 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an interest rate of 3.875% 346.9 345.9 Variable-rate Senior Credit Facility with a weighted-average interest rate of 1.83% at December 31, 2017 and 1.50% at December 31, 2016 52.0 83.8 Variable-rate Accounts Receivable Facility with an interest rate of 1.65% at December 31, 2016 — 48.9 Fixed-rate Euro Senior Unsecured Notes, maturing on September 7, 2027, with an interest rate of 2.02% 179.3 — Variable-rate Euro Term Loan with an interest rate of 1.13% at December 30, 2017 119.7 — Other 4.5 1.9 Total debt $ 856.9 $ 640.0 Less current maturities 2.7 5.0 Long-term debt $ 854.2 $ 635.0 The Company has a $500 million Senior Credit Facility, which matures on June 19, 2020 . At December 31, 2017 , the Company had $ 52.0 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $448.0 million . The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At December 31, 2017 , the Company was in full compliance with both of these covenants. On September 7, 2017 , the Company issued the 2027 Notes in the aggregate principle amount of €150 million of fixed-rate 2.02% senior unsecured notes. On September 18, 2017 , the Company entered into the 2020 Term Loan that provided €100 million . Proceeds from the 2027 Notes and 2020 Term Loan were used to repay amounts drawn from the Senior Credit Facility to fund the Groeneveld acquisition, which closed on July 3, 2017 . Refer to Note 3 - Acquisitions and Divestitures for additional information. These debt instruments have two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. These covenants are similar to those in the Senior Credit Facility. At December 31, 2017 , the Company was in full compliance with both of these covenants. The maturities of long-term debt for the five years subsequent to December 31, 2017 are as follows: Year 2018 $ 2.7 2019 — 2020 171.7 2021 1.7 2022 — Thereafter 680.8 Interest paid was $31.5 million in 2017 , $30.1 million in 2016 and $32.1 million in 2015 . This differs from interest expense due to the timing of payments and interest capitalized of $0.7 million in 2017 , $1.1 million in 2016 and zero in 2015 . The Company and its subsidiaries lease a variety of real property and equipment. Rent expense under operating leases amounted to $35.2 million , $30.0 million and $33.5 million in 2017 , 2016 and 2015 , respectively. Future minimum lease payments for noncancelable operating leases at December 31, 2017 are as follows: Year 2018 $ 33.5 2019 25.9 2020 20.7 2021 12.1 2022 6.8 Thereafter 6.4 |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 11 - Contingencies The Company and certain of its subsidiaries have been identified as potentially responsible parties for investigation and remediation under the Superfund or similar state laws with respect to certain sites. Claims for investigation and remediation have been asserted against numerous other entities, which are believed to be financially solvent and are expected to fulfill their proportionate share of the obligation. On December 28, 2004, the United States Environmental Protection Agency (“USEPA”) sent Lovejoy a Special Notice Letter that identified Lovejoy as a potentially responsible party, together with at least 14 other companies, at the Ellsworth Industrial Park Site, Downers Grove, DuPage County, Illinois (the “Site”). Lovejoy’s Downers Grove property is situated within the Ellsworth Industrial Complex. The USEPA and the Illinois Environmental Protection Agency (“IEPA”) allege there have been one or more releases or threatened releases of hazardous substances, allegedly including, but not limited to, a release or threatened release on or from Lovejoy's property, at the Site. The relief sought by the USEPA and IEPA includes further investigation and potential remediation of the Site and reimbursement of response costs. Lovejoy’s allocated share of past and future costs related to the Site, including for investigation and/or remediation, could be significant. All previously pending property damage and personal injury lawsuits against Lovejoy related to the Site have been settled or dismissed. In connection with the acquisition of Lovejoy discussed in Note 3 - Acquisitions and Divestitures , the Company recorded an accrual for potential environmental remediation. Including the Lovejoy matter discussed above, the Company had total accruals of $5.0 million and $ 5.6 million for various known environmental matters that are probable and reasonably estimable as of December 31, 2017 and 2016 , respectively. These accruals were recorded based upon the best estimate of costs to be incurred in light of the progress made in determining the magnitude of remediation costs, the timing and extent of remedial actions required by governmental authorities and the amount of the Company’s liability in proportion to other responsible parties. Of the 2017 and 2016 accruals, $0.4 million and $ 0.6 million , respectively, was included in the rollforward of the restructuring accrual as of December 31, 2017 , discussed further in Note 12 - Impairment and Restructuring Charges . In addition, the Company is subject to various lawsuits, claims and proceedings, which arise in the ordinary course of its business. The Company accrues costs associated with legal and non-income tax matters when they become probable and reasonably estimable. Accruals are established based on the estimated undiscounted cash flows to settle the obligations and are not reduced by any potential recoveries from insurance or other indemnification claims. Management believes that any ultimate liability with respect to these actions, in excess of amounts provided, will not materially affect the Company’s Consolidated Financial Statements. In October 2014, the Brazilian government antitrust agency announced that it had opened an investigation of alleged antitrust violations in the bearing industry. The Company’s Brazilian subsidiary, Timken do Brasil Comercial Importadora Ltda, was included in the investigation. While the Company is unable to predict the ultimate length, scope or results of the investigation, management believes that the outcome will not have a material effect on the Company’s consolidated financial position. However, any such outcome may be material to the results of operations of any particular period in which costs, if any, are recognized. Based on current facts and circumstances, the low end of the range for potential penalties, if any, would be immaterial to the Company. Product Warranties: In addition to the contingencies above, the Company provides limited warranties on certain of its products. The following is a rollforward of the warranty liability for 2017 and 2016 : 2017 2016 Beginning balance, January 1 $ 6.9 $ 5.4 Expense 2.7 2.4 Payments (3.8 ) (0.9 ) Ending balance, December 31 $ 5.8 $ 6.9 The product warranty liability for 2017 and 2016 was included in other current liabilities on the Consolidated Balance Sheets. |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Impairment and Restructuring Charges | Note 12 - Impairment and Restructuring Charges Impairment and restructuring charges by segment were as follows: Year ended December 31, 2017 : Mobile Industries Process Industries Corporate Total Impairment charges $ — $ 0.1 $ — $ 0.1 Severance expense and related benefit costs 3.3 0.1 0.1 3.5 Exit costs 0.2 — 0.5 0.7 Total $ 3.5 $ 0.2 $ 0.6 $ 4.3 Year ended December 31, 2016 : Mobile Industries Process Industries Corporate Total Impairment charges $ 3.9 $ — $ — $ 3.9 Severance expense and related benefit costs 9.3 6.0 — 15.3 Exit costs 1.8 0.7 — 2.5 Total $ 15.0 $ 6.7 $ — $ 21.7 Year ended December 31, 2015 : Mobile Industries Process Industries Corporate Total Impairment charges $ 0.1 $ 3.2 $ — $ 3.3 Severance expense and related benefit costs 4.5 2.6 0.6 7.7 Exit costs 0.8 2.9 — 3.7 Total $ 5.4 $ 8.7 $ 0.6 $ 14.7 The following discussion explains the major impairment and restructuring charges recorded for the periods presented; however, it is not intended to reflect a comprehensive discussion of all amounts in the tables above. Mobile Industries: On September 29, 2016, the Company announced the closure of the Pulaski bearing plant, which closed during the fourth quarter of 2017 and affected approximately 120 employees. During 2017 and 2016 , the Company recognized severance and related benefit costs of $1.3 million and $2.5 million , respectively, related to this closure. The Company has incurred pretax costs related to this closure of $9.8 million as of December 31, 2017 , including rationalization costs recorded in cost of products sold. In August 2016, the Company completed the consultation process to cease manufacturing operations in Benoni affecting approximately 85 employees. During 2016 , the Company recorded impairment charges of $0.5 million and severance and related benefit costs of $1.1 million related to this closure. The Company will continue to recondition bearings and assemble rail bearings in Benoni. On March 17, 2016, the Company announced the closure of the Altavista bearing plant. The Company completed the closure of this manufacturing facility on March 31, 2017 . During 2016 , the Company recorded impairment charges of $3.1 million and severance and related benefit costs of $1.9 million related to this closure. The Company has incurred pretax costs related to this closure of $11.5 million as of December 31, 2017 , including rationalization costs recorded in cost of products sold. In addition to the above charges, during 2015 , the Company recorded severance and related benefit costs of $1.2 million related to the rationalization of its facility in Colmar, France. Process Industries During 2015 , the Company recorded impairment charges of $3.0 million related to a repair business in Niles, Ohio. See Note 18 - Fair Value for additional information on the impairment charges for the repair business. In addition, the Company recorded $2.9 million of exit costs related to the Company's termination of its relationship with one of its third-party sales representatives in Colombia. Workforce Reductions: In 2017 , the Company recognized $1.8 million of severance and related benefits to eliminate approximately 60 positions to improve efficiency and reduce costs. The amounts recognized in 2017 primarily relate to the Mobile Industries segment. During 2016 , the Company recognized $9.4 million of severance and related benefits to eliminate approximately 175 positions to improve efficiency and reduce costs. Of the $9.4 million charge for 2016 , $3.8 million related to the Mobile Industries segment and $5.6 million related to the Process Industries segment. During 2015 , the Company recognized $6.5 million of severance and related benefits to eliminate approximately 100 positions to improve efficiency and reduce costs. Of the $6.5 million charge for 2015 , $3.4 million related to the Mobile Industries segment, $2.5 million related to the Process Industries segment and $0.6 million related to Corporate positions. Consolidated Restructuring Accrual: The following is a rollforward of the consolidated restructuring accrual for the years ended December 31, 2017 and 2016 : 2017 2016 Beginning balance, January 1 $ 10.1 $ 11.3 Expense 4.2 17.8 Payments (10.4 ) (19.0 ) Ending balance, December 31 $ 3.9 $ 10.1 The restructuring accrual at December 31, 2017 and 2016 |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Note 13 - Stock Compensation Plans Under its long-term incentive plan, the Company’s common shares have been made available for grant, at the discretion of the Compensation Committee of the Board of Directors, to officers and key employees in the form of stock option awards. Stock option awards typically have a ten-year term and generally vest in 25% increments annually beginning on the first anniversary of the date of grant. In addition to stock option awards, the Company has granted restricted shares, deferred shares, performance-based restricted stock units and time-based restricted stock units under its long-term incentive plan. During 2017 , 2016 and 2015 , the Company recognized stock-based compensation expense of $5.2 million ( $3.2 million after tax or $0.04 per diluted share), $5.9 million ( $3.7 million after tax or $0.05 per diluted share) and $6.6 million ( $4.1 million after tax or $0.05 per diluted share), respectively, for stock option awards. The fair value of stock option awards granted during 2017 , 2016 and 2015 was estimated at the date of grant using a Black-Scholes option-pricing method with the following assumptions: 2017 2016 2015 Weighted-average fair value per option $ 10.60 $ 6.49 $ 11.67 Risk-free interest rate 1.96 % 1.22 % 1.58 % Dividend yield 2.96 % 3.04 % 2.29 % Expected stock volatility 32.25 % 34.12 % 36.53 % Expected life - years 5 5 5 Historical information was the primary basis for the selection of the expected dividend yield, expected volatility and the expected lives of the options. The dividend yield was calculated based upon the last dividend prior to the grant compared to the trailing 12 months' daily stock prices. The risk-free interest rate was based upon yields of U.S. zero coupon issues with a term equal to the expected life of the option being valued. A summary of stock option award activity for the year ended December 31, 2017 is presented below: Number of Shares Weighted-average Weighted-average Aggregate Intrinsic Value (millions) Outstanding - beginning of year 3,783,497 $ 34.41 Granted - new awards 484,186 45.43 Exercised (1,053,189 ) 32.62 Canceled or expired (63,373 ) 36.94 Outstanding - end of year 3,151,121 $ 36.65 6 years $ 39.4 Options expected to vest 3,151,121 $ 36.65 6 years $ 39.4 Options exercisable 1,859,277 $ 36.05 5 years $ 24.4 The total intrinsic value of stock option awards exercised during the years ended December 31, 2017 , 2016 and 2015 was $14.7 million , $1.7 million and $5.6 million , respectively. Net cash proceeds from the exercise of stock option awards were $32.9 million , $4.3 million and $4.1 million , respectively. On January 1, 2017, the Company adopted the provisions of ASU 2016-09. As a result, the Company began recording the tax effects associated with stock-based compensation through the income statement on a prospective basis. Prior to 2017 , the Company recorded the tax effects associated with stock-based compensation in paid-in capital. Income tax benefits were $1.9 million and $1.3 million for the years ended December 31, 2017 and 2015 , respectively. Income taxes were a shortfall of $0.3 million for the year ended December 31, 2016 . In 2017 , the Company issued 226,640 performance-based restricted stock units and 191,256 time-based restricted stock units to officers and key employees. The performance-based restricted stock units are calculated and awarded based on the achievement of specified performance objectives and vest three years from the date of grant. The performance-based restricted stock units settle in either cash or shares, with 6,260 shares expected to settle in cash and 220,380 expected to settle in common shares. Time-based restricted stock units vest in 25% increments annually beginning on the first anniversary of the grant. Deferred shares cliff vest five years from the date of grant. Time-based restricted stock units also settle in either cash or shares, with 4,200 time-based restricted stock units expected to settle in cash and 187,056 time-based restricted stock units expected to settle in common shares. For time-based restricted stock units that are expected to settle in cash, the Company had $0.7 million and $1.2 million accrued in salaries, wages and benefits as of December 31, 2017 and 2016 , respectively, on the Consolidated Balance Sheets. A summary of stock award activity, including restricted shares, deferred shares, performance-based restricted stock units and time-based restricted stock units that will settle in common shares for the year ended December 31, 2017 is as follows: Number of Shares Weighted-average Outstanding - beginning of year 1,349,175 $ 34.96 Granted - new awards 407,436 45.48 Vested (445,036 ) 37.18 Canceled or expired (66,301 ) 35.96 Outstanding - end of year 1,245,274 $ 37.56 As of December 31, 2017 , a total of 1,245,274 stock awards have been awarded that have not yet vested. The Company distributed 445,036 , 188,383 and 103,953 shares in 2017 , 2016 and 2015 , respectively, due to the vesting of stock awards; the grant date fair value of these vested shares was $16.5 million , $7.8 million , and $3.8 million , respectively. Shares awarded in 2017 , 2016 and 2015 totaled 407,436 , 613,165 and 485,975 , respectively. The Company recognized compensation expense of $19.5 million , $8.2 million and $11.8 million for the years ended December 31, 2017 , 2016 and 2015 , respectively, relating to stock award activity. As of December 31, 2017 , the Company had unrecognized compensation expense of $29.4 million related to stock options and stock awards. The unrecognized compensation expense is expected to be recognized over a total weighted-average period of two years . The number of shares available for future grants for all plans at December 31, 2017 was 4,920,863 |
Retirement Benefit Plans
Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Retirement Benefit Plans | The Company and its subsidiaries sponsor a number of defined benefit pension plans, which cover eligible employees, including certain employees in foreign countries. These plans generally are noncontributory. Pension benefits earned generally are based on years of service and compensation during active employment. The cash contributions for the Company’s defined benefit pension plans were $11.5 million , $15.0 million and $10.8 million in 2017 , 2016 and 2015 , respectively. The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: U.S. Plans International Plans 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 12.2 $ 13.1 $ 15.4 $ 1.6 $ 1.4 $ 2.2 Interest cost 24.6 26.6 45.6 7.5 10.5 12.3 Expected return on plan assets (28.0 ) (30.1 ) (66.9 ) (11.1 ) (10.7 ) (18.2 ) Amortization of prior service cost 1.4 1.7 2.8 — 0.1 0.1 Recognition of net actuarial 23.1 41.5 (3.4 ) 0.1 19.4 (17.7 ) Curtailment (1.1 ) — — — (0.1 ) 0.6 Settlement — — 116.1 — — — Special termination benefits — — — — — 0.6 Net periodic benefit cost $ 32.2 $ 52.8 $ 109.6 $ (1.9 ) $ 20.6 $ (20.1 ) Assumptions 2017 2016 2015 U.S. Plans: Discount rate 4.34% to 4.50% 4.50% to 4.70% 3.98% to 4.64% Future compensation assumption 2.50% to 3.00% 2.50% to 3.00% 2.00% to 3.00% Expected long-term return on plan assets 5.75% to 6.50% 5.75% to 6.75% 6.00 % International Plans: Discount rate 1.25% to 9.00% 2.00% to 8.50% 1.50% to 8.75% Future compensation assumption 2.00% to 8.00% 2.20% to 8.00% 2.20% to 8.00% Expected long-term return on plan assets 0.75% to 9.25% 0.82% to 9.25% 2.25% to 9.25% The Company recognized actuarial losses of $23.2 million during 2017 primarily due to the impact of a net reduction in the discount rate used to measure its defined benefit pension obligations of $52.9 million and the impact of experience losses and other changes in valuation assumptions of $8.7 million , partially offset by higher than expected returns on plan assets of $38.4 million . The impact of the net reduction in the discount rate used to measure the Company's defined benefit obligation was primarily driven by a 54 basis point reduction in the discount rate used to measure its U.S. defined benefit plan obligations. The Company recognized actuarial losses of $60.9 million during 2016 primarily due to the impact of a net reduction in the discount rate used to measure its defined benefit pension obligations of $86.9 million and the impact of experience losses and other changes in valuation assumptions of $10.2 million , partially offset by higher than expected returns on plan assets of $36.2 million . The impact of the net reduction in the discount rate used to measure the Company's defined benefit obligation was primarily driven by a 125 basis point reduction in the discount rate used to measure its defined benefit plan obligations in the United Kingdom and a 36 basis point reduction in the discount rate used to measure its defined benefit plan obligations in the United States. The Company recognized actuarial gains of $21.1 million during 2015 primarily due to the impact of a net increase in the discount rate used to measure its defined benefit pension obligations of $56.1 million and the impact of experience gains and other changes in valuation assumptions of $22.6 million , partially offset by lower than expected returns on plan assets of $57.6 million . The impact of the net increase in the discount rate used to measure the Company's defined benefit obligation was primarily driven by a 50 basis point increase in the discount rate used to measure its U.S. defined benefit plan obligations. In 2015 , the Company entered into two agreements pursuant to which two of the Company's U.S. defined benefit pension plans purchased group annuity contracts from Prudential. The two group annuity contracts require Prudential to pay and administer future pension benefits for approximately 8,400 U.S. Timken retirees in the aggregate. The Company transferred a total of approximately $1.1 billion of its pension obligations and a total of approximately $1.2 billion of pension assets to Prudential in these transactions. The Company also entered into an agreement pursuant to which one of the Company's Canadian defined benefit pension plans purchased a group annuity contract from Canada Life. The group annuity contract requires Canada Life to pay and administer future pension benefits for approximately 40 Canadian retirees. As a result of the group annuity contracts, as well as pension settlement and curtailment charges related to the Company's Canadian pension plans, the Company incurred total pension settlement and curtailment charges of $119.9 million , including professional fees of $2.6 million , in 2015. For expense purposes in 2017 , the Company applied a weighted-average discount rate of 4.34% to its U.S. defined benefit pension plans. For expense purposes in 2018, the Company will apply a weighted-average discount rate of 3.80% to its U.S. defined benefit pension plans. For expense purposes in 2017 , the Company applied a weighted-average expected rate of return of 5.92% for the Company’s U.S. pension plan assets. For expense purposes in 2018, the Company will apply a weighted-average expected rate of return on plan assets of 5.78% . The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2017 and 2016 : U.S. Plans International Plans 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 612.4 $ 589.9 $ 314.2 $ 338.1 Service cost 12.2 13.1 1.6 1.4 Interest cost 24.6 26.6 7.5 10.5 Plan amendments 2.8 — — — Actuarial losses 60.5 45.3 0.9 53.4 International plan exchange rate change — — 32.2 (45.0 ) Curtailment (1.8 ) — — (0.1 ) Benefits paid (67.7 ) (62.5 ) (21.2 ) (44.1 ) Benefit obligation at end of year $ 643.0 $ 612.4 $ 335.2 $ 314.2 Change in plan assets: Fair value of plan assets at beginning of year $ 529.6 $ 553.7 $ 268.7 $ 304.6 Actual return on plan assets 65.5 33.8 12.0 43.2 Company contributions / payments 4.5 4.6 7.0 10.4 International plan exchange rate change — — 25.9 (45.4 ) Benefits paid (67.7 ) (62.5 ) (21.2 ) (44.1 ) Fair value of plan assets at end of year 531.9 529.6 292.4 268.7 Funded status at end of year $ (111.1 ) $ (82.8 ) $ (42.8 ) $ (45.5 ) U.S. Plans International Plans 2017 2016 2017 2016 Amounts recognized on the Consolidated Balance Sheets: Non-current assets $ 6.7 $ 26.4 $ 13.0 $ 5.7 Current liabilities (4.8 ) (4.3 ) (1.5 ) (1.4 ) Non-current liabilities (113.0 ) (104.9 ) (54.3 ) (49.8 ) $ (111.1 ) $ (82.8 ) $ (42.8 ) $ (45.5 ) Amounts recognized in accumulated other comprehensive loss: Net prior service cost $ 8.1 $ 7.4 $ 0.5 $ 0.5 Accumulated other comprehensive loss $ 8.1 $ 7.4 $ 0.5 $ 0.5 Changes in prior service cost recognized in accumulated other comprehensive loss: Accumulated other comprehensive loss at beginning of year $ 7.4 $ 9.1 $ 0.5 $ 0.5 Prior service cost 2.8 — — — Recognized prior service cost (1.4 ) (1.7 ) — (0.1 ) (Loss) gain recognized due to curtailment (0.7 ) — — 0.1 Total recognized in accumulated other comprehensive loss at December 31 $ 8.1 $ 7.4 $ 0.5 $ 0.5 The presentation in the above tables for amounts recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets is before the effect of income taxes. The following table summarizes assumptions used to measure the benefit obligation for the defined benefit pension plans at December 31: Assumptions 2017 2016 U.S. Plans: Discount rate 3.75% to 3.80% 4.34% to 4.50% Future compensation assumption 2.50 % 2.00% to 3.00% International Plans: Discount rate 1.25% to 9.00% 1.25% to 9.00% Future compensation assumption 2.00% to 8.00% 2.00% to 8.00% Defined benefit pension plans in the United States represent 66% of the benefit obligation and 65% of the fair value of plan assets as of December 31, 2017 . Certain of the Company’s defined benefit pension plans were overfunded as of December 31, 2017 . As a result, $19.7 million and $32.1 million at December 31, 2017 and 2016 , respectively, are included in non-current pension assets on the Consolidated Balance Sheets. The current portion of accrued pension cost, which was included in salaries, wages and benefits on the Consolidated Balance Sheets, was $6.4 million and $5.7 million at December 31, 2017 and 2016 , respectively. In 2017 , the current portion of accrued pension cost relates to unfunded plans and represents the actuarial present value of expected payments related to the plans to be made over the next 12 months. The accumulated benefit obligation at December 31, 2017 exceeded the market value of plan assets for several of the Company’s pension plans. For these plans, the projected benefit obligation was $208.8 million , the accumulated benefit obligation was $196.1 million and the fair value of plan assets was $35.6 million at December 31, 2017 . The total pension accumulated benefit obligation for all plans was $941.5 million and $888.0 million at December 31, 2017 and 2016 , respectively. Investment performance increased the value of the Company’s pension assets by 10.6% in 2017 . As of December 31, 2017 and 2016 , the Company’s defined benefit pension plans did not directly hold any of the Company’s common shares. The estimated prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $1.7 million . Plan Assets: The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2017 and 2016 , was as follows: Current Target Allocation Percentage of Pension Plan Assets at December 31, Asset Category 2017 2016 Equity securities 10% to 16% 14% 12% Fixed income securities 70% to 90% 80% 78% Other investments 4% to 10% 6% 10% Total 100% 100% The Company recognizes its overall responsibility to ensure that the assets of its various defined benefit pension plans are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. Preservation of capital is important; however, the Company also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the pension funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 - Unobservable inputs for the asset or liability. The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2017 : U.S. Pension Plans International Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 27.2 $ — $ — $ 27.2 $ 4.8 $ — $ — $ 4.8 Government and agency securities 15.5 3.4 — 18.9 — — — — Corporate bonds - investment grade — 105.1 — 105.1 — — — — Mutual funds - fixed income 44.9 — — 44.9 — — — — Mutual funds - international equity 17.5 — — 17.5 — — — — $ 105.1 $ 108.5 $ — $ 213.6 $ 4.8 $ — $ — $ 4.8 Investments measured at net asset value: Cash and cash equivalents $ 0.2 $ 0.1 Corporate bonds - investment grade — 5.3 Equity securities - international companies — 1.0 Common collective funds - domestic equities 37.0 — Common collective funds - international equities 11.5 25.3 Common collective funds - fixed income 220.9 86.2 Limited partnerships 31.8 — Real estate partnerships 16.9 — Other assets — 169.7 Total Assets $ 531.9 $ 292.4 The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2016 : U.S. Pension Plans International Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 34.3 $ — $ — $ 34.3 $ 0.8 $ — $ — $ 0.8 Government and agency securities 44.0 2.6 — 46.6 — — — — Corporate bonds - investment grade — 65.7 — 65.7 — — — — Equity securities - U.S. companies 10.5 — — 10.5 — — — — Equity securities - international companies 6.2 — — 6.2 — — — — Mutual funds 41.5 — — 41.5 — — — — $ 136.5 $ 68.3 $ — $ 204.8 $ 0.8 $ — $ — $ 0.8 Investments measured at net asset value: Cash and cash equivalents $ — $ 3.4 Corporate bonds - investment grade — 2.7 Equity securities - international companies — 1.5 Common collective funds - domestic equities 14.0 — Common collective funds - international equities 14.1 33.4 Common collective funds - fixed income 217.1 74.6 Limited partnerships 39.6 — Real estate partnerships 22.1 — Other assets — 152.3 Risk parity 17.9 — Total Assets $ 529.6 $ 268.7 Cash and cash equivalents are valued at redemption value. Government and agency securities are valued at the closing price reported in the active market in which the individual securities are traded. Certain corporate bonds are valued at the closing price reported in the active market in which the bond is traded. Equity securities (both common and preferred stock) are valued at the closing price reported in the active market in which the individual security is traded. Common collective funds are valued based on a net asset value per share. Asset-backed securities are valued based on quoted prices for similar assets in active markets. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security. Limited partnerships include investments in funds that invest primarily in private equity, venture capital and distressed debt. Limited partnerships are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value, per the underlying investment fund, which is based upon the general partner's own assumptions about the assumptions a market participant would use in pricing the assets and liabilities of the partnership. Real estate investments include funds that invest in companies that primarily invest in commercial and residential properties, commercial mortgage-backed securities, debt and equity securities of real estate operating companies, and real estate investment trusts. Other real estate investments are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value per the underlying investment fund, which is based on appraised values and current transaction prices. Risk parity investments include funds that invest in diversified global asset classes (equities, bonds, inflation-linked bonds, and commodities) with leverage to balance risk and achieve consistent returns with lower volatility. Risk parity investments are valued based on the closing prices of the underlying securities in the active markets in which they are traded. Cash Flows: Employer Contributions to Defined Benefit Plans 2016 $ 15.0 2017 11.5 2018 (planned) 10.4 Future benefit payments, including lump sum distributions, are expected to be as follows: Benefit Payments 2018 $ 67.4 2019 94.0 2020 64.6 2021 72.2 2022 65.2 2023-2027 300.4 Employee Savings Plans: The Company sponsors defined contribution retirement and savings plans covering substantially all employees in the United States and employees at certain non-U.S. locations. The Company made contributions to its defined contribution plans of $21.8 million in 2017 , $20.2 million in 2016 and $22.4 million in 2015 . Participants in certain of these plans may elect to hold a portion of their investments in the Company's common shares. At December 31, 2017 , the plans held 2,665,260 of the Company’s common shares with a fair value of $131.0 million . The Company paid dividends totaling $3.0 million in 2017 , $3.7 million in 2016 and $4.2 million in 2015 |
Postretirement Benefit Plans
Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Postretirement Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Postretirement Benefit Plans | The Company and its subsidiaries sponsor several funded and unfunded postretirement plans that provide health care and life insurance benefits for eligible retirees and dependents. Depending on retirement date and employee classification, certain health care plans contain contribution and cost-sharing features such as deductibles, coinsurance and limitations on employer-provided subsidies. The remaining health care and life insurance plans are noncontributory. The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31 : 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 0.1 $ 0.3 $ 0.4 Interest cost 9.1 11.0 10.9 Expected return on plan assets (5.6 ) (6.3 ) (7.3 ) Amortization of prior service (credit) cost (1.0 ) 1.0 0.8 Recognition of net actuarial (gains) losses (4.0 ) 4.5 1.0 Curtailment — 0.1 — Net periodic benefit cost $ (1.4 ) $ 10.6 $ 5.8 Assumptions: 2017 2016 2015 Discount rate 3.97 % 4.39 % 3.95 % Rate of return 6.00 % 6.00 % 6.25 % The Company recognized actuarial gains of $4.0 million during 2017 primarily due to a number of participants opting out of coverage from the plans in response to a financial incentive program offered to eligible participants of the Company's retiree health and life insurance plans. In addition, the Company adopted the MP-2017 scales as its best estimate of future mortality improvements for defined benefit postretirement obligations. The Company recognized actuarial gains of $14.4 million as a result of the impact of the opt-out program, $5.0 million as a result of changes in mortality tables and higher than expected returns on plan assets of $3.7 million . These actuarial gains were partially offset by the impact of experience losses and other changes in valuation assumptions of $12.2 million and the impact of a 40 basis point reduction in the discount rate used to measure its defined benefit postretirement obligations of $6.9 million . The Company recognized actuarial losses of $4.5 million during 2016 primarily due to the impact of a 42 basis point reduction in the discount rate used to measure its defined benefit postretirement obligations of $8.2 million and lower than expected returns on plan assets of $0.2 million , partially offset by the impact of experience gains and other changes in valuation assumptions of $3.9 million . The Company recognized actuarial losses of $1.0 million during 2015 primarily due to lower than expected returns on plan assets of $8.6 million and the impact of experience losses and other changes in valuation assumptions of $1.7 million , partially offset by the impact of a 44 basis point increase in the discount rate used to measure its defined benefit postretirement obligations of $9.3 million . The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. For expense purposes in 2017 , the Company applied a discount rate of 3.97% to its other postretirement benefit plans. For expense purposes in 2018, the Company will apply a discount rate of 3.57% to its other postretirement benefit plans. For expense purposes in 2017 , the Company applied an expected rate of return of 6.00% to the VEBA trust assets. For expense purposes in 2018, the Company will apply an expected rate of return of 4.50% to the VEBA trust assets. The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets of the other postretirement benefit plans as of December 31, 2017 and 2016 : 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 241.4 $ 262.7 Service cost 0.1 0.3 Interest cost 9.1 11.0 Plan amendments 1.2 (11.4 ) Actuarial (gains) losses (0.3 ) 4.3 Benefits paid (31.7 ) (25.5 ) Benefit obligation at end of year $ 219.8 $ 241.4 Change in plan assets: Fair value of plan assets at beginning of year $ 102.4 $ 112.1 Company contributions / payments 12.4 9.7 Return on plan assets 9.3 6.1 Benefits paid (31.7 ) (25.5 ) Fair value of plan assets at end of year 92.4 102.4 Funded status at end of year $ (127.4 ) $ (139.0 ) Amounts recognized on the Consolidated Balance Sheets: Current liabilities $ (4.8 ) $ (7.5 ) Non-current liabilities (122.6 ) (131.5 ) $ (127.4 ) $ (139.0 ) Amounts recognized in accumulated other comprehensive income: Net prior service cost $ (8.1 ) $ (10.3 ) Accumulated other comprehensive income $ (8.1 ) $ (10.3 ) Changes to prior service cost recognized in accumulated other comprehensive (income) loss: Accumulated other comprehensive income (loss) at beginning of year $ (10.3 ) $ 2.2 Prior service cost (credit) 1.2 (11.4 ) Recognized prior service credit (cost) 1.0 (1.0 ) Loss recognized due to curtailment — (0.1 ) Total recognized in accumulated other comprehensive income at December 31 $ (8.1 ) $ (10.3 ) The presentation in the above tables for amounts recognized in accumulated other comprehensive (income) loss on the Consolidated Balance Sheets is before the effect of income taxes. The following table summarizes assumptions used to measure the benefit obligation for the other postretirement benefit plans at December 31 : Assumptions: 2017 2016 Discount rate 3.57 % 3.97 % In 2016 , the Company amended one of its other postretirement benefit plans to no longer offer Company-subsidized postretirement medical benefits to certain eligible employees that retire after December 31, 2016. This amendment reduced the accumulated benefit obligation by $11.4 million in 2016 . This amount will be amortized over the remaining service period of the employees affected by this amendment. The current portion of accrued postretirement benefit cost, which was included in salaries, wages and benefits on the Consolidated Balance Sheets, was $4.8 million and $7.5 million at December 31, 2017 and 2016 , respectively. In 2017 , the current portion of accrued postretirement benefit cost related to unfunded plans and represented the actuarial present value of expected payments related to the plans to be made over the next 12 months. The estimated prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is a credit of $1.7 million . For measurement purposes, the Company assumed a weighted-average annual rate of increase in the per capita cost (health care cost trend rate) for medical benefits of 6.25% for 2018 , declining gradually to 5.0% in 2023 and thereafter; and 6.25% for 2018 , declining gradually to 5.0% in 2023 and thereafter for prescription drug benefits; and 8.25% for 2018 , declining gradually to 5.0% in 2031 and thereafter for HMO benefits. Most of the Company's postretirement plans include caps that limit the amount of the benefit provided by the Company to participants each year, which lessens the impact of health care inflation costs to the Company. The assumed health care cost trend rate may have a significant effect on the amounts reported. A one percentage point increase in the assumed health care cost trend rate would have increased the 2017 total service and interest cost components by $0.2 million and would have increased the postretirement benefit obligation by $4.4 million . A one percentage point decrease would provide corresponding reductions of $0.2 million and $3.9 million , respectively. The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the "Medicare Act") provides for prescription drug benefits under Medicare Part D and contains a subsidy to plan sponsors who provide “actuarially equivalent” prescription plans. The Company’s actuary determined that the prescription drug benefit provided by the Company’s postretirement plan is considered to be actuarially equivalent to the benefit provided under the Medicare Act. In accordance with ASC Topic 715, “Compensation – Retirement Benefits,” all measures of the accumulated postretirement benefit obligation or net periodic postretirement benefit cost in the financial statements or accompanying notes reflect the effects of the Medicare Act on the plan for the entire fiscal year. The 2017 expected subsidy was $1.7 million , of which $0.9 million was received prior to December 31, 2017 . Plan Assets: The Company’s target allocation for the VEBA trust assets, as well as the actual VEBA trust asset allocation as of December 31, 2017 and 2016 , was as follows: Current Target Allocation Percentage of VEBA Assets at December 31, Asset Category 2017 2016 Equity securities 14% to 20% 17% 30% Fixed income securities 80% to 86% 83% 70% Total 100% 100% Preservation of capital is important; however, the Company also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the postretirement funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. The following table presents those investments of the Company’s VEBA trust assets measured at net asset value on a recurring basis as of December 31, 2017 and 2016 , respectively: 2017 2016 Assets: Cash and cash equivalents $ 13.0 $ 2.1 Common collective fund - U.S. equities 9.5 18.5 Common collective fund - international equities 6.7 12.3 Common collective fund - fixed income 63.2 69.5 Total Assets $ 92.4 $ 102.4 Cash and cash equivalents are valued at redemption value. Common collective funds are valued based on a net asset value per share, which is used as a practical expedient to fair value. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security. Cash Flows: The Company did not make any employer contributions to the VEBA Trust in 2017 and 2016 . The Company does not expect to make any employer contributions in 2018. Future benefit payments are expected to be as follows: Gross Expected Medicare Subsidies Net Including Medicare Subsidies 2018 $ 24.9 $ 1.2 $ 23.7 2019 23.4 1.2 22.2 2020 22.0 1.3 20.7 2021 20.8 1.3 19.5 2022 19.6 1.3 18.3 2023-2027 80.9 6.3 74.6 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | The Company operates under two reportable segments: (1) Mobile Industries and (2) Process Industries. Description of types of products and services from which each reportable segment derives its revenues: The Company ' s reportable segments are business units that target different industry sectors. While the segments often operate using a shared infrastructure, each reportable segment is managed to address specific customer needs in these diverse market segments. Mobile Industries offers an extensive portfolio of bearings, seals, lubrication devices and systems, as well as power transmission components, engineered chain, augers, belts, couplings, clutches, brakes and related products and maintenance services, to OEMs and end users of: off-highway equipment for the agricultural, construction, mining, outdoor power equipment and powersports markets; on-highway vehicles including passenger cars, light trucks and medium- and heavy-duty trucks; rail cars and locomotives. Beyond service parts sold to OEMs, aftermarket sales and services to individual end users, equipment owners, operators and maintenance shops are handled directly or through the Company's extensive network of authorized automotive and heavy-truck distributors, and include hub units, specialty kits and more. Mobile Industries also provides power transmission systems and flight-critical components for civil and military aircraft, which include bearings, helicopter transmission systems, rotor-head assemblies, turbine engine components, gears and housings. Process Industries supplies industrial bearings and assemblies, power transmission components such as gears and gearboxes, couplings, seals, lubricants, chains, belts and related products and services to OEMs and end users in industries that place heavy demands on operating equipment they make or use. This includes; metals, mining, cement and aggregate production; coal and wind power generation; oil and gas; pulp and paper in applications including printing presses; and cranes, hoists, drawbridges, wind energy turbines, gear drives, drilling equipment, coal conveyors, health and critical motion control equipment, marine equipment and food processing equipment. This segment also supports aftermarket sales and service needs through its global network of authorized industrial distributors and through the provision of services directly to end users. In addition, the Company’s industrial services group offers end users a broad portfolio of maintenance support and capabilities that include repair and service for bearings and gearboxes as well as electric motor rewind, repair and services. Measurement of segment profit or loss and segment assets: The Company evaluates performance and allocates resources based on return on capital and profitable growth. The primary measurement used by management to measure the financial performance of each segment is EBIT. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Factors used by management to identify the enterprise’s reportable segments: Net sales by geographic area are reported by the destination of net sales, which is reflective of how the Company operates its segments. Long-lived assets by geographic area are reported by the location of the subsidiary. Timken’s non-U.S. operations are subject to normal international business risks not generally applicable to a domestic business. These risks include currency fluctuation, changes in tariff restrictions, difficulties in establishing and maintaining relationships with local distributors and dealers, import and export licensing requirements, difficulties in staffing and managing geographically diverse operations and restrictive regulations by foreign governments, including price and exchange controls, compliance with a variety of foreign laws and regulations, including unexpected changes in taxation and environmental regulatory requirements, and disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the FCPA. Business Segment Information: The following tables provide segment financial information and a reconciliation of segment results to consolidated results: 2017 2016 2015 Net sales to external customers: Mobile Industries $ 1,640.0 $ 1,446.4 $ 1,558.3 Process Industries 1,363.8 1,223.4 1,314.0 $ 3,003.8 $ 2,669.8 $ 2,872.3 Segment EBIT: Mobile Industries $ 132.1 $ 87.1 $ 205.5 Process Industries 220.5 149.5 207.6 Total EBIT, for reportable segments $ 352.6 $ 236.6 $ 413.1 Corporate expenses (58.5 ) (61.4 ) (44.8 ) CDSOA income, net — 59.6 — Pension settlement charges — (1.6 ) (119.9 ) Interest expense (37.1 ) (33.5 ) (33.4 ) Interest income 2.9 1.9 2.7 Income before income taxes $ 259.9 $ 201.6 $ 217.7 2017 2016 Assets employed at year-end: Mobile Industries $ 1,775.7 $ 1,162.7 Process Industries 1,383.1 1,322.2 Corporate (1) 243.6 278.3 $ 3,402.4 $ 2,763.2 (1) Corporate assets include corporate buildings and cash and cash equivalents. 2017 2016 2015 Capital expenditures: Mobile Industries $ 57.3 $ 88.4 $ 47.5 Process Industries 46.2 48.4 57.5 Corporate 1.2 0.7 0.6 $ 104.7 $ 137.5 $ 105.6 Depreciation and amortization: Mobile Industries $ 70.0 $ 64.9 $ 61.4 Process Industries 66.6 65.6 68.1 Corporate 1.1 1.2 1.3 $ 137.7 $ 131.7 $ 130.8 Geographic Financial Information: 2017 2016 2015 Net sales: United States $ 1,603.0 $ 1,478.6 $ 1,566.1 Americas excluding United States 333.2 308.2 339.7 Europe / Middle East / Africa 570.3 461.3 496.7 Asia-Pacific 497.3 421.7 469.8 $ 3,003.8 $ 2,669.8 $ 2,872.3 Property, Plant and Equipment, net: United States $ 392.1 $ 418.0 $ 446.7 Americas excluding United States 14.7 14.9 10.6 Europe / Middle East / Africa 203.4 141.1 92.5 Asia-Pacific 254.0 230.4 228.0 $ 864.2 $ 804.4 $ 777.8 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | of 35% to income before taxes: 2017 2016 2015 Income tax at the U.S. federal statutory rate $ 91.0 $ 70.6 $ 76.2 Adjustments: State and local income taxes, net of federal tax benefit 3.1 2.6 4.3 Tax on foreign remittances and U.S. tax on foreign income 93.0 8.3 13.8 Foreign losses without current tax benefits 8.9 6.4 5.3 Foreign earnings taxed at different rates including tax holidays (18.0 ) (5.2 ) (14.9 ) U.S. domestic manufacturing deduction (3.9 ) (5.0 ) (4.5 ) U.S. foreign tax credit (104.2 ) (8.0 ) (22.4 ) U.S. research tax credit (1.5 ) (0.6 ) (1.1 ) Accruals and settlements related to tax audits (34.4 ) (8.1 ) (5.9 ) Valuation allowance changes (12.6 ) 0.2 (34.7 ) Deferred taxes related to branch operations — (1.3 ) 11.6 U.S. Tax Reform 35.3 — — Other items, net 0.9 0.6 (1.4 ) Provision for income taxes $ 57.6 $ 60.5 $ 26.3 Effective income tax rate 22.2 % 30.0 % 12.1 % U.S. Tax Reform was enacted on December 22, 2017 and reduced the U.S. federal corporate rate from 35% to 21% . It requires companies to pay a one-time net charge related to the taxation of unremitted foreign earnings and allows for immediate expensing of certain depreciable assets after September 27, 2017. In addition, U.S. Tax Reform also contains global intangible low-taxed income ("GILTI") provisions that impose a new tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. Changes in tax law are accounted for in the period of enactment and deferred tax assets and liabilities are measured at the enacted tax rate. Also on December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of U.S. Tax Reform. In accordance with SAB 118, the accounting for the tax effects of U.S. Tax Reform is not complete; however, reasonable estimates have been made for the one-time net charge related to the taxation of unremitted earnings and the remeasurement of U.S. deferred tax balances to reflect the new U.S. corporate income tax rate. Reasonable estimates have also been made for the effects of other provisions of U.S. Tax Reform, but they do not have a material impact on the Company’s consolidated financial statements. Provisional estimates of $25.2 million for the one-time net charge related to the taxation of unremitted foreign earnings and $10.1 million related to the remeasurement of U.S. deferred tax balances to reflect the new U.S. corporate income tax rate were recognized as components of income tax expense in the current period. The Company’s provisional estimates may be affected as the Company obtains a more thorough understanding of the tax law and as additional analysis of U.S. Tax Reform is completed. A provisional estimate could not be made for the GILTI provisions, as the Company has not yet completed its assessment or elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred . Additional information is necessary to prepare a more detailed analysis of the Company’s deferred tax assets and liabilities and historical foreign earnings, as well as potential correlative adjustments . Any subsequent adjustments to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. No additional income tax provision has been made on any remaining undistributed foreign earnings not subject to the one-time net charge related to the taxation of unremitted foreign earnings or any additional outside basis difference as these amounts continue to be indefinitely reinvested in foreign operations. The Company is still evaluating whether to change its indefinite reinvestment assertion in light of U.S. Tax Reform and considers this conclusion to be incomplete. If the Company subsequently changes its assertion, it will account for the change in the quarter of 2018 when the analysis is complete. The amounts of undistributed foreign earnings were $479.6 million and $561.7 million at December 31, 2017 and December 31, 2016 , respectively. It is not practicable to calculate the taxes that might be payable on such earnings indefinitely reinvested outside the United States. The effect of temporary differences giving rise to deferred tax assets and liabilities at December 31, 2017 and 2016 was as follows: 2017 2016 Deferred tax assets: Accrued postretirement benefits cost $ 35.7 $ 56.8 Accrued pension cost 53.4 63.3 Other employee benefit accruals 6.4 11.5 Tax loss and credit carryforwards 92.6 84.7 Other, net 29.0 43.8 Valuation allowances (79.4 ) (85.5 ) $ 137.7 $ 174.6 Deferred tax liabilities - principally depreciation and amortization (120.7 ) (127.0 ) Net deferred tax assets $ 17.0 $ 47.6 The Company has U.S. federal and state tax credit and loss carryforwards with tax benefits totaling $2.5 million , portions of which will begin expiring in 2018 and continue until 2035. In addition, the Company has loss carryforwards in various non-U.S. jurisdictions with tax benefits totaling $90.1 million , portions of which will begin expiring in 2018 while others will be carried forward indefinitely. The Company has provided valuation allowances of $64.8 million against certain of these carryforwards. A majority of the non-U.S. loss carryforwards represent local country net operating losses for branches of the Company or entities treated as branches of the Company under U.S. tax law. Tax benefits have been recorded for these losses in the United States. Substantially all of the related local country net operating loss carryforwards are offset fully by valuation allowances. In addition to loss and credit carryforwards, the Company has provided valuation allowances of $14.6 million against other deferred tax assets. As of December 31, 2017 , the Company had $14.0 million of total gross unrecognized tax benefits, all of which would favorably impact the Company’s effective income tax rate in any future period if such benefits were recognized. As of December 31, 2017 , the Company believes it is reasonably possible that the amount of unrecognized tax positions could decrease by approximately $3.9 million during the next 12 months. The potential decrease would be primarily driven by settlements with tax authorities and the expiration of various applicable statutes of limitation. As of December 31, 2017 , the Company had accrued $3.0 million of interest and penalties related to uncertain tax positions. The Company records interest and penalties related to uncertain tax positions as a component of income tax expense. As of December 31, 2016, the Company had $39.2 million of total gross unrecognized tax benefits. Included in this amount was $35.9 million of unrecognized tax benefits that would impact favorably the Company’s effective income tax rate in any future period if such benefits were recognized. As of December 31, 2016, the Company had accrued $8.5 million of interest and penalties related to uncertain tax positions. As of December 31, 2015, the Company had $50.4 million of total gross unrecognized tax benefits. Included in this amount was $38.0 million of unrecognized tax benefits that would favorably impact the Company’s effective income tax rate in any future period if such benefits were recognized. As of December 31, 2015, the Company had accrued $12.2 million of interest and penalties related to uncertain tax positions. The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Beginning balance, January 1 $ 39.2 $ 50.4 $ 57.5 Tax positions related to the current year: Additions 2.7 — 6.5 Tax positions related to prior years: Additions 6.9 5.7 5.0 Reductions (5.2 ) (7.8 ) (4.0 ) Settlements with tax authorities — (9.1 ) (14.6 ) Lapses in statutes of limitation (29.6 ) — — Ending balance, December 31 $ 14.0 $ 39.2 $ 50.4 During 2017, gross unrecognized tax benefits decreased primarily due to expiration of applicable statutes of limitations in multiple jurisdictions. These decreases were partially offset by accruals related to both current and prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations. During 2016, gross unrecognized tax benefits decreased primarily due to settlements with tax authorities related to various prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations. The decrease also was related to reductions in unrecognized tax benefits for changes in judgment regarding prior year tax matters in multiple jurisdictions. These decreases were partially offset by accruals related to prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations. During 2015, gross unrecognized tax benefits decreased primarily due to settlements with tax authorities related to various prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations. These decreases were partially offset by accruals related to both current and prior year tax matters, including certain U.S. federal taxes, U.S. state and local taxes and taxes related to the Company’s international operations. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Note 18 - Fair Value The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheets measured at fair value on a recurring basis as of December 31, 2017 and 2016 : December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 108.5 $ 107.3 $ 1.2 $ — Cash and cash equivalents measured at net 13.1 Restricted cash 3.8 3.8 — — Short-term investments 16.2 — 16.2 — Short-term investments measured at net asset value 0.2 Foreign currency hedges 1.3 — 1.3 — Total Assets $ 143.1 $ 111.1 $ 18.7 $ — Liabilities: Foreign currency hedges $ 7.1 $ — $ 7.1 $ — Total Liabilities $ 7.1 $ — $ 7.1 $ — 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 at net 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 redemption value. Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. 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 counterparts to its financial instruments. 2017 No material assets were measured at fair value on a nonrecurring basis during the year ended December 31, 2017 . 2016 The following table presents those assets measured at fair value on a nonrecurring basis during the year ended December 31, 2016 , using Level 3 inputs: Carrying Value Fair Value Adjustment Fair Value Long-lived assets held for sale: Land $ 0.2 $ (0.2 ) $ — Total long-lived assets held for sale $ 0.2 $ (0.2 ) $ — Long-lived assets held and used: Altavista bearing plant $ 5.6 $ (3.1 ) $ 2.5 Equipment at Benoni bearing plant 0.5 (0.5 ) — Total long-lived assets held and used $ 6.1 $ (3.6 ) $ 2.5 Assets held for sale of $0.2 million were written down to their fair value of zero during the first quarter of 2016 , resulting in an impairment charge. The fair value of these assets was based on the price that the Company expected to receive upon disposal 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 charge 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 , which was recorded in net other income (expense) in the Consolidated Statement of Income. In August 2016, the Company completed the consultation process to close the Benoni manufacturing operations. The Company will continue to recondition bearings and assemble rail bearings in Benoni. Equipment at this facility, with a carrying value of $0.5 million , was written down to its fair value of zero during the third quarter of 2016, resulting in an impairment of $0.5 million . The fair value for the equipment was based on the price that the Company expected to receive from the sale of the equipment. During the second quarter of 2017 , the Benoni manufacturing facility was reclassified to assets held for sale and included in other current assets on the Consolidated Balance Sheet. In June 2017 , this facility was sold for a pretax gain of approximately $1.9 million , which was recorded in net other income (expense) in the Consolidated Statement of Income. 2015 The following table presents those assets measured at fair value on a nonrecurring basis during the year ended December 31, 2015 , using Level 3 inputs: Carrying Value Fair Value Adjustment Fair Value Long-lived assets held for sale: Repair business $ 5.8 $ (3.0 ) $ 2.8 Total long-lived assets held for sale $ 5.8 $ (3.0 ) $ 2.8 Long-lived assets held and used: Fixed assets $ 0.8 $ (0.3 ) $ 0.5 Total long-lived assets held and used $ 0.8 $ (0.3 ) $ 0.5 Assets held for sale of $5.8 million associated with the Company's service center in Niles, Ohio were written down to their fair value of $2.8 million during the first quarter of 2015, resulting in an impairment charge of $3.0 million . The fair value of these assets was based on the price that the Company expected to receive from the sale of these assets. Various items of property, plant and equipment, with a carrying value of $0.8 million , were written down to their fair value of $0.5 million , resulting in an impairment charge of $0.3 million . The fair value for these assets was based on the price that would be received in a current transaction to sell the assets on a standalone basis, considering the age and physical attributes of these items, as these assets had been idled. Financial Instruments: The Company’s financial instruments consist primarily of cash and cash equivalents, short-term investments, net accounts receivable, trade accounts payable, short-term borrowings and long-term debt. Due to their short-term nature, the carrying value of cash and cash equivalents, short-term investments, net accounts receivable, trade accounts payable, 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 $720.3 million and $532.2 million at December 31, 2017 and 2016 , respectively. The carrying value of this debt was $682.4 million and $507.3 million at December 31, 2017 and 2016 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities (Notes) | 12 Months Ended |
Dec. 31, 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 and interest rate risk. Forward 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. From time to time, interest rate swaps are used to manage interest rate risk associated with the Company’s fixed, and floating-rate borrowings. The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and certain interest rate hedges as cash flow hedges of fixed-rate borrowings. The Company does not purchase or hold any derivative financial instruments for trading purposes. As of December 31, 2017 and 2016 , the Company had $386.9 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, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted cash flows denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against foreign currencies, the decline in the present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. The maximum length of time over which the Company hedges it exposure to the variability in future cash flows for forecast transactions is generally eighteen months or less. Purpose for Derivative Instruments not designated as Hedging Instruments: For derivative instruments that are not designated as hedging instruments, the instruments are typically forward contracts. In general, the practice is to reduce volatility by selectively hedging transaction exposures including intercompany loans, accounts payable and accounts receivable. Intercompany loans between entities with different functional currencies typically are hedged with a forward contract at the inception of loan with a maturity date at the maturity of the loan. The revaluation of these contracts, as well as the revaluation of the underlying balance sheet items, is recorded directly to the income statement so the adjustment generally offsets the revaluation of the underlying balance sheet items to protect cash payments and reduce income statement volatility. The following table presents the fair value of the Company's derivative instruments at December 31, 2017 and 2016. Those balances are presented within other non-current assets and liabilities in the Consolidated Balance Sheets. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Foreign currency forward contracts $ 0.5 $ 2.3 $ 2.1 $ 0.5 Derivatives not designated as hedging instruments Foreign currency forward contracts 0.8 7.6 5.0 1.6 Total Derivatives $ 1.3 $ 9.9 $ 7.1 $ 2.1 The following tables present the impact of derivative instruments for the years ended December 31, 2017, 2016 and 2015, respectively, and their location within the Consolidated Statements of Income: Amount of gain or (loss) recognized in Year Ended December 31, Derivatives in cash flow hedging relationships 2017 2016 2015 Foreign currency forward contracts $ (4.7 ) $ (0.2 ) $ 3.0 Interest rate swaps (2.4 ) — — Total $ (7.1 ) $ (0.2 ) $ 3.0 Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Income (Loss) into income (effective portion) Year Ended December 31, Derivatives in cash flow hedging relationships Location of gain or (loss) recognized in income 2017 2016 2015 Foreign currency forward contracts Cost of products sold $ (1.4 ) $ — $ 1.5 Interest rate swaps Interest expense $ (0.4 ) $ (0.3 ) $ (0.3 ) Total $ (1.8 ) $ (0.3 ) $ 1.2 Amount of gain or (loss) recognized in income on derivative instruments Year Ended December 31, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2017 2016 2015 Foreign currency forward contracts Other income (expense), net $ (10.2 ) $ 0.1 $ (5.7 ) |
Research and Development
Research and Development | 12 Months Ended |
Dec. 31, 2017 | |
Research and Development [Abstract] | |
Research, Development, and Computer Software Disclosure [Text Block] | Note 20 - Research and Development The Company performs research and development under Company-funded programs and under contracts with the federal government and others. Expenditures committed to research and development amounted to $35.3 million , $31.8 million and $ 32.6 million in 2017 , 2016 and 2015 |
Continued Dumping and Subsidy A
Continued Dumping and Subsidy Act (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
CDSOA [Abstract] | |
Continued Dumping And Subsidy Offset Act [Text Block] | Note 21 - Continued Dumping and Subsidy Offset Act CDSOA provides for distribution of monies collected by U.S. Customs and Border Protection on entries of merchandise subject to antidumping orders that entered the United States 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 year ended December 31, 2016 , the Company recognized pretax CDSOA income of $59.6 million , net of related expenses. In September 2002, the World Trade Organization ruled that CDSOA payments are not consistent with international trade rules. In February 2006, U.S. legislation was enacted that ended CDSOA distributions for imports covered by antidumping duty orders entering the United States after September 30, 2007. Instead, any such antidumping duties collected would remain with the U.S. Treasury. CDSOA has been the subject of significant litigation since 2002, and U.S. Customs has withheld CDSOA distributions in recent years while litigation was ongoing. In recent months, much of the CDSOA litigation that involves antidumping orders where Timken is a qualifying domestic producer has concluded. During 2016, the Company received CDSOA distributions of $60.6 million , representing funds that would have been distributed to the Company at the end of calendar years 2011 through 2016. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 2017 1st 2nd 3rd 4th Total Net sales $ 703.8 $ 750.6 $ 771.4 $ 778.0 $ 3,003.8 Gross profit (1) 180.5 201.8 217.0 211.1 810.4 Selling, general and administrative expenses (1) 119.6 123.8 134.0 144.0 521.4 Impairment and restructuring charges 1.7 0.8 1.3 0.5 4.3 Net income (2) 38.1 82.0 54.1 28.1 202.3 Net (loss) income attributable to noncontrolling interests (0.1 ) (0.5 ) 0.6 (1.1 ) (1.1 ) Net income attributable to The Timken Company 38.2 82.5 53.5 29.2 203.4 Net income per share - Basic: $ 0.49 $ 1.06 $ 0.69 $ 0.38 $ 2.62 Net income per share - Diluted: $ 0.48 $ 1.04 $ 0.68 $ 0.37 $ 2.58 Dividends per share $ 0.26 $ 0.27 $ 0.27 $ 0.27 $ 1.07 2016 1st 2nd 3rd 4th Total Net sales $ 684.0 $ 673.6 $ 657.4 $ 654.8 $ 2,669.8 Gross profit (3) 183.1 184.5 169.7 131.2 668.5 Selling, general and administrative expenses (3) 116.1 108.0 107.2 139.4 470.7 Impairment and restructuring charges (4) 10.5 2.9 5.3 3.0 21.7 Net income (loss) (5) 65.8 48.2 34.0 (6.9 ) 141.1 Net income (loss) attributable to noncontrolling interests (0.1 ) — 0.4 — 0.3 Net income (loss) attributable to The Timken Company 65.9 48.2 33.6 (6.9 ) 140.8 Net income (loss) per share - Basic: $ 0.83 $ 0.61 $ 0.43 $ (0.09 ) $ 1.79 Net income (loss) per share - Diluted: $ 0.82 $ 0.61 $ 0.43 $ (0.09 ) $ 1.78 Dividends per share $ 0.26 $ 0.26 $ 0.26 $ 0.26 $ 1.04 Earnings per share are computed independently for each of the quarters presented; therefore, the sum of the quarterly earnings per share may not equal the total computed for the year. The amounts presented above for the fourth quarter of 2016 were revised to include adjustments relating to the change in accounting principle discussed in Note 2 - Change in Accounting Principles , including adjustments to reverse the amortization of actuarial gains and losses, the elimination of pension settlement charges and the recognition of actuarial gains and losses. These adjustments include a $32.9 million decrease in gross profit, a $27.4 million increase in SG&A expenses and a $31.0 million decrease in net income and net income attributable to The Timken Company, as well as a $0.40 per share decrease for both basic and diluted net income per share. During the fourth quarter of 2016 , the Company incurred a net loss and therefore treated all stock options and restricted stock units as antidilutive. (1) Gross profit and SG&A expenses included net actuarial losses of $2.2 million and $11.5 million , respectively, for the fourth quarter of 2017. (2) Net income for the second quarter of 2017 included a $34 million reversal of accruals for uncertain tax positions. Net income for the fourth quarter of 2017 included $35.3 million of income tax expense related to U.S. Tax Reform. (3) Gross profit and SG&A expenses included net actuarial losses of $35.6 million and $29.8 million , respectively, for the fourth quarter of 2016. (4) Impairment and restructuring charges for the first quarter of 2016 included severance and related benefit costs of $7.7 million , impairment charges of $2.6 million and exit costs of $0.2 million . Impairment and restructuring charges for the third quarter of 2016 included severance and related benefit costs of $3.3 million , impairment charges of $1.2 million and exit costs of $0.8 million . (5) Net income (loss) included net CDSOA income, net of $47.7 million for the first quarter of 2016, $6.1 million for the second quarter of 2016 and $6.0 million |
Schedule 2 Valuation and Qualif
Schedule 2 Valuation and Qualifying Accounts Valuation and Qualifying Accounts (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | Schedule II—Valuation and Qualifying Accounts The Timken Company and Subsidiaries Allowance for uncollectible accounts: 2017 2016 2015 Balance at beginning of period $ 20.2 $ 16.9 $ 13.7 Additions: Charged to costs and expenses (1) 3.8 4.8 6.8 Charged to other accounts (2) 0.4 0.2 0.6 Deductions (3) 4.1 1.7 4.2 Balance at end of period $ 20.3 $ 20.2 $ 16.9 Allowance for surplus and obsolete inventory: 2017 2016 2015 Balance at beginning of period $ 21.1 $ 18.4 $ 12.8 Additions: Charged to costs and expenses (4) 10.3 13.4 9.6 Charged to other accounts (2) 5.9 0.4 2.7 Deductions (5) 7.4 11.1 6.7 Balance at end of period $ 29.9 $ 21.1 $ 18.4 Valuation allowance on deferred tax assets: 2017 2016 2015 Balance at beginning of period $ 85.5 $ 83.7 $ 145.4 Additions Charged to costs and expenses (6) 6.5 3.8 4.1 Charged to other accounts (7) — — (14.1 ) Deductions (8) 12.6 2.0 51.7 Balance at end of period $ 79.4 $ 85.5 $ 83.7 (1) Provision for uncollectible accounts included in expenses. (2) Currency translation and change in reserves due to acquisitions, net of divestitures. (3) Actual accounts written off against the allowance, net of recoveries. (4) Provision for surplus and obsolete inventory included in expenses. (5) Inventory items written off against the allowance. (6) Increase in valuation allowance is recorded as a component of the provision for income taxes. (7) Includes valuation allowances recorded against other comprehensive income/loss or goodwill. (8) |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Note 1 - Significant Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts and operations of the Company in which a controlling interest is maintained. Investments in affiliated companies where the Company exercises significant influence, but does not control, and the activities of which it is not the primary beneficiary, are accounted for using the equity method. All intercompany accounts and transactions are eliminated upon consolidation. Revenue Recognition: The Company recognizes revenue when title passes to the customer. This occurs at the shipping point except for goods sold by certain foreign entities and certain exported goods, where title passes when the goods reach their destination. Selling prices are fixed based on purchase orders or contractual arrangements. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold in the Consolidated Statements of Income. The Company recognizes a portion of its revenues on the percentage-of-completion method measured on the cost-to-cost basis. In 2017 , 2016 and 2015 , the Company recognized $83 million , $68 million , and $66 million , respectively, in net sales under the percentage-of-completion method. As of December 31, 2017 and 2016 , net accounts receivable included costs in excess of billings of $67.3 million and $63.5 million , respectively, related to these net sales. Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Restricted Cash: Cash of $ 3.8 million and $ 2.7 million at December 31, 2017 and 2016 , respectively, was restricted. The increase was primarily due to cash restricted for bank guarantees of $0.5 million and for unclaimed dividends by foreign subsidiaries to minority shareholders of $0.6 million . Allowance for Doubtful Accounts: The Company maintains an allowance for doubtful accounts, which represents an estimate of the losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance is based upon historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts and management’s evaluation of business risk. The Company extends credit to customers satisfying pre-defined credit criteria. The Company believes it has limited concentration of credit risk due to the diversity of its customer base. Inventories: Inventories are valued at the lower of cost or market, with approximately 55% valued by the FIFO method and the remaining 45% valued by the LIFO method. The majority of the Company’s domestic inventories are valued by the LIFO method, while all of the Company’s international inventories are valued by the FIFO method. Investments: Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. The Company held short-term investments as of December 31, 2017 and 2016 with a fair value and cost basis of $16.4 million and $11.7 million , respectively, which were included in other current assets on the Consolidated Balance Sheets. Property, Plant and Equipment: Property, plant and equipment, net is valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings, three to 10 years for computer software and three to 20 years for machinery and equipment. The impairment of long-lived assets is evaluated when events or changes in circumstances indicate that the carrying amount of the asset or related group of assets may not be recoverable. If the expected future undiscounted cash flows are less than the carrying amount of the asset, an impairment loss is recognized at that time to reduce the asset to the lower of its fair value or its net book value. Goodwill and Other Intangible Assets: Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from one to 20 years . Goodwill and indefinite-lived intangible assets not subject to amortization are tested for impairment at least annually. The Company performs its annual impairment test as of October 1st. Furthermore, goodwill and intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying values may not be recoverable in accordance with accounting rules related to goodwill and other intangible assets. Product Warranties: The Company provides limited warranties on certain of its products. The Company accrues liabilities for warranties generally based upon specific claims and in certain instances based on historical warranty claim experience in accordance with accounting rules relating to contingent liabilities. When the Company becomes aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim data and historical experience change. Income Taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. The Company recognizes valuation allowances against deferred tax assets by tax jurisdiction when it is more likely than not those assets will not be realized. Accruals for uncertain tax positions are provided for in accordance with ASC 740-10. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. Foreign Currency: Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rates of exchange prevailing during the reporting period. Translation adjustments for assets and liabilities are reflected as a separate component of accumulated other comprehensive loss. Foreign currency gains and losses resulting from transactions are included in the Consolidated Statements of Income. For the year ended December 31, 2017 , the Company recorded a non-cash foreign currency translation adjustment of $ 44.7 million that increased shareholders’ equity, compared with a non-cash foreign currency translation adjustment of $ 24.5 million that decreased shareholders’ equity for the year ended December 31, 2016 . The foreign currency translation adjustments for the year ended December 31, 2017 were positively impacted by the weakening of the U.S. dollar relative to most other currencies. The Company recognized a foreign currency exchange loss resulting from transactions of $ 3.7 million , $ 5.6 million and $ 0.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Pension and Other Postretirement Benefits: Prior to January 1, 2017, the Company recognized an overfunded status or underfunded status (i.e., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and other postretirement benefit plans on the Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The adjustment to accumulated other comprehensive income represented the net unrecognized actuarial gains and losses and unrecognized prior service costs that were amortized in future periods as a component of net periodic benefit cost. Beginning on January 1, 2017, the Company changed its accounting principles for recognizing actuarial gains and losses and expected returns on plan assets. The Company now recognizes actuarial gains and losses immediately through net periodic benefit cost included in cost of products sold and SG&A expense upon the annual remeasurement in the fourth quarter, or on an interim basis if specific events trigger a remeasurement. Also, the market-related value of plan assets is measured at fair value. These changes in accounting principles were applied retrospectively; therefore, prior period amounts impacted have been revised accordingly herein. For further information, refer to Note 2 - Change in Accounting Principles in the Notes to the Consolidated Financial Statements. Stock-Based Compensation: The Company recognizes stock-based compensation expense over the related vesting period of the awards based on the fair value on the grant date. Stock options are issued with an exercise price equal to the opening market price of Timken common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. The fair value of stock-based awards that will settle in Timken common shares, other than stock options, is based on the opening market price of Timken common shares on the grant date. The fair value of stock-based awards that will settle in cash are remeasured at each reporting period until settlement of the awards. Earnings Per Share: Only certain unvested restricted share grants provide for the payment of nonforfeitable dividends. The Company considers these awards as participating securities. Earnings per share are computed using the two-class method. Basic earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding during the year. Diluted earnings per share are computed by dividing net income less undistributed earnings allocated to unvested restricted shares by the weighted-average number of common shares outstanding, adjusted for the dilutive impact of outstanding stock-based awards. Derivative Instruments: The Company recognizes all derivatives on the Consolidated Balance Sheets at fair value. Derivatives that are not designated as hedges are adjusted to fair value through earnings. If the derivative is designated and qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. The Company’s holdings of forward foreign currency exchange contracts qualify as derivatives pursuant to the criteria established in derivative accounting guidance, and the Company has designated certain of those derivatives as hedges. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Because actual results could differ from these estimates, the Company reviews and updates these estimates and assumptions regularly to reflect recent experience. 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 shares surrendered by employees to meet the minimum statutory withholding requirement was applied retrospectively in the Consolidated Statement of Cash Flows. As a result of the adoption of ASU 2016-09, $ 1.9 million and $ 4.0 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 12 months ended December 31, 2016 and December 31, 2015 , respectively. 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 recording a cumulative effect decrease to retained earnings of $ 1.0 million , as reflected in the Consolidated Statements of Shareholders' Equity. 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 12 months ended December 31, 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 7 - 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 2017-12 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. Accordingly, the Company plans to adopt ASU 2017-07 during the first quarter of 2018. The Company's assessment has indicated that the adoption of ASU 2017-07 will result in the reclassification of certain amounts from cost of products sold and SG&A expenses to other income (expense), net in the Consolidated Statement of Income. The amounts impacted include all components of net benefit cost, except for the service cost component, for the Company's defined benefit pension plans and other postretirement benefit plans. The amounts impacted may be material to individual line items on the Consolidated Statement of Income, but will have no impact on the Company's net income. The Company will finalize its analysis on the effect that the adoption of ASU 2017-07 will have on the Company's results of operations during the first quarter of 2018. 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. While the effect of adopting ASU 2017-04 will not be known until the period of adoption, the Company currently does not expect it to materially impact 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 (the "New Standard”) 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 the New Standard by one year, which will result in it being effective for annual periods beginning after December 15, 2017. The Company has completed the assessment phase of the project, which has identified certain differences from the application of the New Standard. The Company is currently designing and implementing procedures and related internal controls to address the differences identified, including the expanded disclosure requirements resulting from the New Standard, and will adopt the requirements of the New Standard in the first quarter of 2018. The Company has determined it will use the modified retrospective method of adoption, such that the cumulative effect of applying the New Standard will be recognized at the date of initial application accompanied by additional disclosures comparing the current period results presented under the New Standard to the previous accounting method. |
Investment, Policy [Policy Text Block] | Investments: Short-term investments are investments with maturities between four months and one year and are valued at amortized cost, which approximates fair value. The Company held short-term investments as of December 31, 2017 and 2016 with a fair value and cost basis of $16.4 million and $11.7 million |
Principles of Consolidation | Principles of Consolidation: |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition: The Company recognizes revenue when title passes to the customer. This occurs at the shipping point except for goods sold by certain foreign entities and certain exported goods, where title passes when the goods reach their destination. Selling prices are fixed based on purchase orders or contractual arrangements. Shipping and handling costs billed to customers are included in net sales and the related costs are included in cost of products sold in the Consolidated Statements of Income. |
Revenue Recognition, Percentage-of-Completion Method [Policy Text Block] | The Company recognizes a portion of its revenues on the percentage-of-completion method measured on the cost-to-cost basis. In 2017 , 2016 and 2015 , the Company recognized $83 million , $68 million , and $66 million , respectively, in net sales under the percentage-of-completion method. As of December 31, 2017 and 2016 , net accounts receivable included costs in excess of billings of $67.3 million and $63.5 million |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash: Cash of $ 3.8 million and $ 2.7 million at December 31, 2017 and 2016 , respectively, was restricted. The increase was primarily due to cash restricted for bank guarantees of $0.5 million and for unclaimed dividends by foreign subsidiaries to minority shareholders of $0.6 million |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts:The Company maintains an allowance for doubtful accounts, which represents an estimate of the losses expected from the accounts receivable portfolio, to reduce accounts receivable to their net realizable value. The allowance is based upon historical trends in collections and write-offs, management’s judgment of the probability of collecting accounts and management’s evaluation of business risk. The Company extends credit to customers satisfying pre-defined credit criteria. The Company believes it has limited concentration of credit risk due to the diversity of its customer base. |
Inventory, Policy [Policy Text Block] | Inventories: Inventories are valued at the lower of cost or market, with approximately 55% valued by the FIFO method and the remaining 45% |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment: Property, plant and equipment, net is valued at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred. The provision for depreciation is computed principally by the straight-line method based upon the estimated useful lives of the assets. The useful lives are approximately 30 years for buildings, three to 10 years for computer software and three to 20 years for machinery and equipment. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill and Other Intangible Assets: Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from one to 20 years |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties: The Company provides limited warranties on certain of its products. The Company accrues liabilities for warranties generally based upon specific claims and in certain instances based on historical warranty claim experience in accordance with accounting rules relating to contingent liabilities. When the Company becomes aware of a specific potential warranty claim for which liability is probable and reasonably estimable, a specific charge is recorded and accounted for accordingly. Adjustments are made quarterly to the accruals as claim data and historical experience change. |
Income Tax, Policy [Policy Text Block] | Income Taxes: The Company accounts for income taxes in accordance with ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recorded for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases, as well as net operating loss and tax credit carryforwards. The Company recognizes valuation allowances against deferred tax assets by tax jurisdiction when it is more likely than not those assets will not be realized. Accruals for uncertain tax positions are provided for in accordance with ASC 740-10. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency: Assets and liabilities of subsidiaries are translated at the rate of exchange in effect on the balance sheet date; income and expenses are translated at the average rates of exchange prevailing during the reporting period. Translation adjustments for assets and liabilities are reflected as a separate component of accumulated other comprehensive loss. Foreign currency gains and losses resulting from transactions are included in the Consolidated Statements of Income. For the year ended December 31, 2017 , the Company recorded a non-cash foreign currency translation adjustment of $ 44.7 million that increased shareholders’ equity, compared with a non-cash foreign currency translation adjustment of $ 24.5 million that decreased shareholders’ equity for the year ended December 31, 2016 . The foreign currency translation adjustments for the year ended December 31, 2017 were positively impacted by the weakening of the U.S. dollar relative to most other currencies. The Company recognized a foreign currency exchange loss resulting from transactions of $ 3.7 million , $ 5.6 million and $ 0.3 million for the years ended December 31, 2017 , 2016 and 2015 |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Other Postretirement Benefits: Prior to January 1, 2017, the Company recognized an overfunded status or underfunded status (i.e., the difference between the fair value of plan assets and the benefit obligations) as either an asset or a liability for its defined benefit pension and other postretirement benefit plans on the Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive income, net of tax. The adjustment to accumulated other comprehensive income represented the net unrecognized actuarial gains and losses and unrecognized prior service costs that were amortized in future periods as a component of net periodic benefit cost. Beginning on January 1, 2017, the Company changed its accounting principles for recognizing actuarial gains and losses and expected returns on plan assets. The Company now recognizes actuarial gains and losses immediately through net periodic benefit cost included in cost of products sold and SG&A expense upon the annual remeasurement in the fourth quarter, or on an interim basis if specific events trigger a remeasurement. Also, the market-related value of plan assets is measured at fair value. These changes in accounting principles were applied retrospectively; therefore, prior period amounts impacted have been revised accordingly herein. For further information, refer to Note 2 - Change in Accounting Principles |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation: The Company recognizes stock-based compensation expense over the related vesting period of the awards based on the fair value on the grant date. Stock options are issued with an exercise price equal to the opening market price of Timken common shares on the date of grant. The fair value of stock options is determined using a Black-Scholes option pricing model, which incorporates assumptions regarding the expected volatility, the expected option life, the risk-free interest rate and the expected dividend yield. The fair value of stock-based awards that will settle in Timken common shares, other than stock options, is based on the opening market price of Timken common shares on the grant date. The fair value of stock-based awards that will settle in cash are remeasured at each reporting period until settlement of the awards. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share: |
Derivatives, Policy [Policy Text Block] | Derivative Instruments: The Company recognizes all derivatives on the Consolidated Balance Sheets at fair value. Derivatives that are not designated as hedges are adjusted to fair value through earnings. If the derivative is designated and qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivatives are either offset against the change in fair value of the hedged assets, liabilities or firm commitments through earnings or recognized in accumulated other comprehensive loss until the hedged item is recognized in earnings. The Company’s holdings of forward foreign currency exchange contracts qualify as derivatives pursuant to the criteria established in derivative accounting guidance, and the Company has designated certain of those derivatives as hedges. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Because actual results could differ from these estimates, the Company reviews and updates these estimates and assumptions regularly to reflect recent experience. |
New Accounting Pronouncements, Policy [Policy Text Block] | 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 shares surrendered by employees to meet the minimum statutory withholding requirement was applied retrospectively in the Consolidated Statement of Cash Flows. As a result of the adoption of ASU 2016-09, $ 1.9 million and $ 4.0 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 12 months ended December 31, 2016 and December 31, 2015 , respectively. 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 recording a cumulative effect decrease to retained earnings of $ 1.0 million , as reflected in the Consolidated Statements of Shareholders' Equity. 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 12 months ended December 31, 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 7 - 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 2017-12 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. Accordingly, the Company plans to adopt ASU 2017-07 during the first quarter of 2018. The Company's assessment has indicated that the adoption of ASU 2017-07 will result in the reclassification of certain amounts from cost of products sold and SG&A expenses to other income (expense), net in the Consolidated Statement of Income. The amounts impacted include all components of net benefit cost, except for the service cost component, for the Company's defined benefit pension plans and other postretirement benefit plans. The amounts impacted may be material to individual line items on the Consolidated Statement of Income, but will have no impact on the Company's net income. The Company will finalize its analysis on the effect that the adoption of ASU 2017-07 will have on the Company's results of operations during the first quarter of 2018. 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. While the effect of adopting ASU 2017-04 will not be known until the period of adoption, the Company currently does not expect it to materially impact 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 (the "New Standard”) 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 the New Standard by one year, which will result in it being effective for annual periods beginning after December 15, 2017. The Company has completed the assessment phase of the project, which has identified certain differences from the application of the New Standard. The Company is currently designing and implementing procedures and related internal controls to address the differences identified, including the expanded disclosure requirements resulting from the New Standard, and will adopt the requirements of the New Standard in the first quarter of 2018. The Company has determined it will use the modified retrospective method of adoption, such that the cumulative effect of applying the New Standard will be recognized at the date of initial application accompanied by additional disclosures comparing the current period results presented under the New Standard to the previous accounting method. The cumulative-effect adjustment of adopting the New Standard is not expected to be material to the Company's results of operations and financial condition; however, we will expand certain disclosures as required. The anticipated impact principally relates to the acceleration of revenue recognition for certain revenue streams previously accounted for using a point-in-time model that will now utilize an over-time model due to the continuous transfer of control to customers. Additionally, there are other minor policy changes related to the timing and measurement of recognizing revenue and costs to better align our policies with the New Standard that are not expected to result in material changes. The Company's belief that the impact to its results of operations and financial condition is not material is based on an evaluation of its contracts under the New Standard, which only supports the recognition of revenue over time under the cost-to-cost method for a limited number of contracts, primarily in the services, defense, and aerospace market sectors. Revenue on the majority of the Company's contracts will continue to be recognized as of a point in time because the criteria in the New Standard for over time recognition have not been met. Additionally, the Company does not expect material changes to its consolidated balance sheet. The anticipated impact to the consolidated balance sheet primarily relates to reclassifications among financial statement accounts to align with the New Standard and the addition of contract asset and contract liability accounts representing costs in excess of billings for in-process contracts and deferred revenue, respectively, for revenue that is recognized over-time as previously described. The Company's contract balances will be reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. |
Change in Accounting Principl33
Change in Accounting Principles (Tables) | 12 Months Ended |
Dec. 31, 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 for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Cost of products sold $ 2,199.0 $ 2,193.4 $ (5.6 ) Gross profit 804.8 810.4 5.6 Selling, general and administrative expenses 518.0 521.4 3.4 Pension settlement expenses 17.3 — (17.3 ) Operating income 265.2 284.7 19.5 Income before income taxes 240.4 259.9 19.5 Provision for income taxes 51.1 57.6 6.5 Net income 189.3 202.3 13.0 Net income attributable to The Timken Company $ 190.4 $ 203.4 $ 13.0 Basic earnings per share $ 2.45 $ 2.62 $ 0.17 Diluted earnings per share $ 2.41 $ 2.58 $ 0.17 Consolidated Statements of Income for the Years Ended December 31: 2016 As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 1,975.0 $ 2,001.3 $ 26.3 Gross profit 694.8 668.5 (26.3 ) Selling, general and administrative expenses 450.0 470.7 20.7 Pension settlement expenses 28.1 1.6 (26.5 ) Operating income 195.0 174.5 (20.5 ) Income before income taxes 222.1 201.6 (20.5 ) Provision for income taxes 69.2 60.5 (8.7 ) Net income 152.9 141.1 (11.8 ) Net income attributable to The Timken Company $ 152.6 $ 140.8 $ (11.8 ) Basic earnings per share $ 1.94 $ 1.79 $ (0.15 ) Diluted earnings per share $ 1.92 $ 1.78 $ (0.14 ) 2015 As Previously Reported Revised Effect of Accounting Change Cost of products sold $ 2,078.4 $ 2,052.8 $ (25.6 ) Gross profit 793.9 819.5 25.6 Selling, general and administrative expenses 494.3 457.7 (36.6 ) Pension settlement expenses 465.0 119.9 (345.1 ) Operating income (loss) (151.4 ) 255.9 407.3 Income (loss) before income taxes (189.6 ) 217.7 407.3 Provision (benefit) for income taxes (121.6 ) 26.3 147.9 Net income (loss) (68.0 ) 191.4 259.4 Net income (loss) attributable to The Timken Company $ (70.8 ) $ 188.6 $ 259.4 Basic earnings (loss) per share $ (0.84 ) $ 2.23 $ 3.07 Diluted earnings (loss) per share $ (0.84 ) $ 2.21 $ 3.05 Consolidated Statements of Comprehensive Income for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Net Income $ 189.3 $ 202.3 $ 13.0 Pension and postretirement liability adjustment 11.2 (1.8 ) (13.0 ) Other comprehensive income, net of tax $ 55.0 $ 42.0 $ (13.0 ) Consolidated Statements of Comprehensive Income for the Years Ended December 31: 2016 As Previously Reported Revised Effect of Accounting Change Net Income $ 152.9 $ 141.1 $ (11.8 ) Foreign currency translation adjustments (32.8 ) (22.8 ) 10.0 Pension and postretirement liability adjustment (0.6 ) 1.1 1.7 Other comprehensive income, net of tax (33.3 ) (21.6 ) 11.7 Comprehensive Income, net of tax 119.6 119.5 (0.1 ) Comprehensive income attributable to The Timken Company $ 117.6 $ 117.5 $ (0.1 ) 2015 As Previously Reported Revised Effect of Accounting Change Net Income $ (68.0 ) $ 191.4 $ 259.4 Foreign currency translation adjustments (73.5 ) (64.8 ) 8.7 Pension and postretirement liability adjustment 265.9 (2.4 ) (268.3 ) Other comprehensive income, net of tax 193.5 (66.1 ) (259.6 ) Comprehensive Income, net of tax 125.5 125.3 (0.2 ) Less: comprehensive income attributable to noncontrolling interest 0.8 0.7 (0.1 ) Comprehensive income attributable to The Timken Company $ 124.7 $ 124.6 $ (0.1 ) Consolidated Balance Sheets for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Inventories, net $ 731.0 $ 738.9 $ 7.9 Total current assets 1,492.2 1,500.1 7.9 Deferred income taxes 64.0 61.0 (3.0 ) Total other assets 1,041.1 1,038.1 (3.0 ) Total assets 3,397.5 3,402.4 4.9 Earnings invested in the business 1,634.7 1,408.4 (226.3 ) Accumulated other comprehensive loss (269.4 ) (38.3 ) 231.1 Total shareholders' equity 1,437.9 1,442.7 4.8 Noncontrolling interest 32.1 32.2 0.1 Total equity 1,470.0 1,474.9 4.9 Total liabilities and shareholders' equity $ 3,397.5 $ 3,402.4 $ 4.9 Consolidated Balance Sheets for the Years Ended December 31: 2016 As Previously Reported Revised Effect of Accounting Change Inventories, net $ 545.8 $ 553.7 $ 7.9 Total current assets 1,204.0 1,211.9 7.9 Deferred income taxes 54.4 51.4 (3.0 ) Total other assets 749.9 746.9 (3.0 ) Total assets 2,758.3 2,763.2 4.9 Earnings invested in the business 1,528.6 1,289.3 (239.3 ) Accumulated other comprehensive loss (322.0 ) (77.9 ) 244.1 Total shareholders' equity 1,274.9 1,279.7 4.8 Noncontrolling interest 31.1 31.2 0.1 Total equity 1,306.0 1,310.9 4.9 Total liabilities and shareholders' equity $ 2,758.3 $ 2,763.2 $ 4.9 Consolidated Statements of Cash Flows for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Net income attributable to The Timken Company $ 190.4 $ 203.4 $ 13.0 Deferred income tax benefit (6.9 ) (0.4 ) 6.5 Pension and other postretirement expense $ 48.4 $ 28.9 $ (19.5 ) 2016 As Previously Reported Revised Effect of Accounting Change Net income attributable to The Timken Company $ 152.6 $ 140.8 $ (11.8 ) Deferred income tax benefit (6.3 ) (15.0 ) (8.7 ) Pension and other postretirement expense $ 63.5 $ 84.0 $ 20.5 2015 As Previously Reported Revised Effect of Accounting Change Net income attributable to The Timken Company $ (70.8 ) $ 188.6 $ 259.4 Deferred income tax benefit (170.1 ) (22.2 ) 147.9 Pension and other postretirement expense 502.9 95.3 (407.6 ) Inventories $ 52.8 $ 53.1 $ 0.3 Consolidated Statements of Shareholders' Equity for the Years Ended December 31: 2017 Previous Accounting Method As Reported Effect of Accounting Change Net income $ 189.3 $ 202.3 $ 13.0 Pension and postretirement liability adjustments $ 11.2 $ (1.8 ) $ (13.0 ) 2016 As Previously Reported Revised Effect of Accounting Change Net income $ 152.9 $ 141.1 $ (11.8 ) Foreign currency translation adjustment (32.8 ) (22.8 ) 10.0 Pension and postretirement liability adjustments $ (0.6 ) $ 1.1 $ 1.7 2015 As Previously Reported Revised Effect of Accounting Change Net income (loss) $ (68.0 ) $ 191.4 $ 259.4 Foreign currency translation adjustment (73.5 ) (64.8 ) 8.7 Pension and postretirement liability adjustments $ 265.9 $ (2.4 ) $ (268.3 ) |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Acquisitions and Divestitures [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | he purchase price allocations, net of cash acquired, and any subsequent purchase price adjustments for acquisitions in 2017 , 2016 and 2015 are presented below: 2017 2016 2015 Assets: Accounts receivable $ 27.6 $ 8.4 $ 13.3 Inventories 29.4 17.8 48.5 Other current assets 3.3 5.3 1.1 Property, plant and equipment 31.5 16.5 37.9 Goodwill 149.7 30.6 70.8 Other intangible assets 173.6 27.9 63.9 Other non-current assets 1.8 0.1 — Total assets acquired $ 416.9 $ 106.6 $ 235.5 Liabilities: Accounts payable, trade $ 9.5 $ 8.1 $ 10.2 Salaries, wages and benefits 5.8 1.3 1.1 Other current liabilities 8.6 4.4 1.3 Short-term debt 0.1 — — Long-term debt 2.9 2.2 — Accrued pension cost — — 2.3 Accrued postretirement liability — — 1.1 Deferred taxes 42.2 10.4 5.9 Other non-current liabilities 1.0 7.6 — Total liabilities assumed $ 70.1 $ 34.0 $ 21.9 Net assets acquired $ 346.8 $ 72.6 $ 213.6 |
Business Acquisition Purchase price allocation identifiable intangible assets | he following table summarizes the final purchase price allocation for identifiable intangible assets acquired in 2016 : Weighted- Average Life Trade names (indefinite life) $ 3.7 Indefinite Trade names (finite life) 0.2 5 years Technology and know-how 10.1 19 years Customer relationships 13.5 20 years Other 0.3 4 years Capitalized software 0.1 4 years Total intangible assets $ 27.9 2017 : Weighted- Average Life Trade names (indefinite life) 31.1 Indefinite Trade names (finite life) 2.2 13 years Technology and know-how 29.8 16 years Customer relationships 108.9 17 years Other 0.2 5 years Capitalized software 1.4 3 years Total intangible assets $ 173.6 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Numerator: Net income attributable to The Timken Company $ 203.4 $ 140.8 $ 188.6 Less: undistributed earnings allocated to nonvested stock — — — Net income available to common shareholders for basic earnings per share and diluted earnings per share $ 203.4 $ 140.8 $ 188.6 Denominator: Weighted-average number of shares outstanding – basic 77,736,398 78,516,029 84,631,778 Effect of dilutive securities: Stock options and awards - based on the treasury stock method 1,174,751 718,295 714,468 Weighted-average number of shares outstanding, assuming 78,911,149 79,234,324 85,346,246 Basic earnings per share $ 2.62 $ 1.79 $ 2.23 Diluted earnings per share $ 2.58 $ 1.78 $ 2.21 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (loss) [Abstract] | |
Accumulated Other Comprehensive Income Components Reclassification [Text Block] | The following tables present details about components of accumulated other comprehensive income (loss) for the years ended December 31, 2017 and December 31, 2016 , respectively: 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 reclassifications, before income tax 47.1 (4.0 ) (7.1 ) 36.0 Amounts reclassified from accumulated other comprehensive income (loss), before income tax — 1.1 1.8 2.9 Income tax benefit (expense) — 1.1 2.0 3.1 Net current period other comprehensive income (loss), net of income taxes 47.1 (1.8 ) (3.3 ) 42.0 Non-controlling interest (2.4 ) — — (2.4 ) Net current period comprehensive income (loss), net of income taxes and non-controlling interest 44.7 (1.8 ) (3.3 ) 39.6 Balance at December 31, 2017 $ (35.1 ) $ (0.3 ) $ (2.9 ) $ (38.3 ) 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 (loss) income before reclassifications, before income tax (22.8 ) 11.4 (0.2 ) (11.6 ) Amounts reclassified from accumulated other comprehensive income (loss), before income tax — 2.8 0.3 3.1 Income tax expense — (13.1 ) — (13.1 ) Net current period other comprehensive (loss) income, net of income taxes (22.8 ) 1.1 0.1 (21.6 ) Non-controlling interest (1.7 ) — — (1.7 ) Net current period comprehensive (loss) income, net of income taxes and non-controlling interest (24.5 ) 1.1 0.1 (23.3 ) Balance at December 31, 2016 $ (79.8 ) $ 1.5 $ 0.4 $ (77.9 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The components of inventories at December 31, 2017 and 2016 were as follows: 2017 2016 Manufacturing supplies $ 29.0 $ 28.2 Raw materials 90.4 54.9 Work in process 245.2 182.9 Finished products 404.3 308.8 Subtotal $ 768.9 $ 574.8 Allowance for surplus and obsolete inventory (30.0 ) (21.1 ) Total Inventories, net $ 738.9 $ 553.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Components of property, plant and equipment | The components of property, plant and equipment, net at December 31, 2017 and 2016 were as follows: 2017 2016 Land and buildings $ 483.0 $ 425.4 Machinery and equipment 1,922.6 1,807.6 Subtotal $ 2,405.6 $ 2,233.0 Less: accumulated depreciation (1,541.4 ) (1,428.6 ) Property, Plant and Equipment, net $ 864.2 $ 804.4 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite and Indefinite Lived Intangible Assets by Major Class [Table Text Block] | The following table displays intangible assets as of December 31, 2017 and 2016 : 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Intangible assets subject Customer relationships $ 324.6 $ 103.0 $ 221.6 $ 211.4 $ 84.4 $ 127.0 Technology and know-how 128.7 33.8 94.9 95.2 25.4 69.8 Trade names 8.6 4.3 4.3 6.5 3.8 2.7 Capitalized Software 261.5 226.5 35.0 251.7 211.8 39.9 Other 10.3 6.2 4.1 11.0 7.5 3.5 $ 733.7 $ 373.8 $ 359.9 $ 575.8 $ 332.9 $ 242.9 Intangible assets not Trade names $ 52.0 $ 52.0 $ 19.4 $ 19.4 FAA air agency certificates 8.7 8.7 8.7 8.7 $ 60.7 $ 60.7 $ 28.1 $ 28.1 Total intangible assets $ 794.4 $ 373.8 $ 420.6 $ 603.9 $ 332.9 $ 271.0 |
Schedule of Goodwill [Table Text Block] | Year ended December 31, 2016 : Mobile Industries Process Industries Total Beginning Balance $ 97.0 $ 230.3 $ 327.3 Acquisitions 0.7 29.9 30.6 Other (0.5 ) 0.1 (0.4 ) Ending Balance $ 97.2 $ 260.3 $ 357.5 Year ended December 31, 2017 : Mobile Industries Process Industries Total Beginning Balance $ 97.2 $ 260.3 $ 357.5 Acquisitions 150.8 (1.1 ) 149.7 Other 6.3 (1.7 ) 4.6 Ending Balance $ 254.3 $ 257.5 $ 511.8 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments for noncancelable operating leases at December 31, 2017 are as follows: Year 2018 $ 33.5 2019 25.9 2020 20.7 2021 12.1 2022 6.8 Thereafter 6.4 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The maturities of long-term debt for the five years subsequent to December 31, 2017 are as follows: Year 2018 $ 2.7 2019 — 2020 171.7 2021 1.7 2022 — Thereafter 680.8 |
Short-term debt | Short-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Variable-rate Accounts Receivable Facility with an interest rate of 2.15% at December 31, 2017 $ 62.9 $ — 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 2.22% at December 31, 2017 and 0.50% at December 31, 2016 42.5 19.2 Short-term debt $ 105.4 $ 19.2 |
Long-term debt | Long-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Fixed-rate Medium-Term Notes, Series A, maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% $ 154.5 $ 159.5 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an interest rate of 3.875% 346.9 345.9 Variable-rate Senior Credit Facility with a weighted-average interest rate of 1.83% at December 31, 2017 and 1.50% at December 31, 2016 52.0 83.8 Variable-rate Accounts Receivable Facility with an interest rate of 1.65% at December 31, 2016 — 48.9 Fixed-rate Euro Senior Unsecured Notes, maturing on September 7, 2027, with an interest rate of 2.02% 179.3 — Variable-rate Euro Term Loan with an interest rate of 1.13% at December 30, 2017 119.7 — Other 4.5 1.9 Total debt $ 856.9 $ 640.0 Less current maturities 2.7 5.0 Long-term debt $ 854.2 $ 635.0 |
Contingencies Contingencies (Ta
Contingencies Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Roll forward of product warranty accruals | In addition to the contingencies above, the Company provides limited warranties on certain of its products. The following is a rollforward of the warranty liability for 2017 and 2016 : 2017 2016 Beginning balance, January 1 $ 6.9 $ 5.4 Expense 2.7 2.4 Payments (3.8 ) (0.9 ) Ending balance, December 31 $ 5.8 $ 6.9 |
Impairment and Restructuring 42
Impairment and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | Impairment and restructuring charges by segment were as follows: Year ended December 31, 2017 : Mobile Industries Process Industries Corporate Total Impairment charges $ — $ 0.1 $ — $ 0.1 Severance expense and related benefit costs 3.3 0.1 0.1 3.5 Exit costs 0.2 — 0.5 0.7 Total $ 3.5 $ 0.2 $ 0.6 $ 4.3 Year ended December 31, 2016 : Mobile Industries Process Industries Corporate Total Impairment charges $ 3.9 $ — $ — $ 3.9 Severance expense and related benefit costs 9.3 6.0 — 15.3 Exit costs 1.8 0.7 — 2.5 Total $ 15.0 $ 6.7 $ — $ 21.7 Year ended December 31, 2015 : Mobile Industries Process Industries Corporate Total Impairment charges $ 0.1 $ 3.2 $ — $ 3.3 Severance expense and related benefit costs 4.5 2.6 0.6 7.7 Exit costs 0.8 2.9 — 3.7 Total $ 5.4 $ 8.7 $ 0.6 $ 14.7 |
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following is a rollforward of the consolidated restructuring accrual for the years ended December 31, 2017 and 2016 : 2017 2016 Beginning balance, January 1 $ 10.1 $ 11.3 Expense 4.2 17.8 Payments (10.4 ) (19.0 ) Ending balance, December 31 $ 3.9 $ 10.1 |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of significant stock options granted | The fair value of stock option awards granted during 2017 , 2016 and 2015 was estimated at the date of grant using a Black-Scholes option-pricing method with the following assumptions: 2017 2016 2015 Weighted-average fair value per option $ 10.60 $ 6.49 $ 11.67 Risk-free interest rate 1.96 % 1.22 % 1.58 % Dividend yield 2.96 % 3.04 % 2.29 % Expected stock volatility 32.25 % 34.12 % 36.53 % Expected life - years 5 5 5 |
Summary of stock option activity | A summary of stock option award activity for the year ended December 31, 2017 is presented below: Number of Shares Weighted-average Weighted-average Aggregate Intrinsic Value (millions) Outstanding - beginning of year 3,783,497 $ 34.41 Granted - new awards 484,186 45.43 Exercised (1,053,189 ) 32.62 Canceled or expired (63,373 ) 36.94 Outstanding - end of year 3,151,121 $ 36.65 6 years $ 39.4 Options expected to vest 3,151,121 $ 36.65 6 years $ 39.4 Options exercisable 1,859,277 $ 36.05 5 years $ 24.4 |
Summary of restricted share activity | A summary of stock award activity, including restricted shares, deferred shares, performance-based restricted stock units and time-based restricted stock units that will settle in common shares for the year ended December 31, 2017 is as follows: Number of Shares Weighted-average Outstanding - beginning of year 1,349,175 $ 34.96 Granted - new awards 407,436 45.48 Vested (445,036 ) 37.18 Canceled or expired (66,301 ) 35.96 Outstanding - end of year 1,245,274 $ 37.56 |
Retirement Benefit Plans (Table
Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheets measured at fair value on a recurring basis as of December 31, 2017 and 2016 : December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 108.5 $ 107.3 $ 1.2 $ — Cash and cash equivalents measured at net 13.1 Restricted cash 3.8 3.8 — — Short-term investments 16.2 — 16.2 — Short-term investments measured at net asset value 0.2 Foreign currency hedges 1.3 — 1.3 — Total Assets $ 143.1 $ 111.1 $ 18.7 $ — Liabilities: Foreign currency hedges $ 7.1 $ — $ 7.1 $ — Total Liabilities $ 7.1 $ — $ 7.1 $ — 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 at net 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 $ — |
Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2017 and 2016 : U.S. Plans International Plans 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 612.4 $ 589.9 $ 314.2 $ 338.1 Service cost 12.2 13.1 1.6 1.4 Interest cost 24.6 26.6 7.5 10.5 Plan amendments 2.8 — — — Actuarial losses 60.5 45.3 0.9 53.4 International plan exchange rate change — — 32.2 (45.0 ) Curtailment (1.8 ) — — (0.1 ) Benefits paid (67.7 ) (62.5 ) (21.2 ) (44.1 ) Benefit obligation at end of year $ 643.0 $ 612.4 $ 335.2 $ 314.2 |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | Change in plan assets: Fair value of plan assets at beginning of year $ 529.6 $ 553.7 $ 268.7 $ 304.6 Actual return on plan assets 65.5 33.8 12.0 43.2 Company contributions / payments 4.5 4.6 7.0 10.4 International plan exchange rate change — — 25.9 (45.4 ) Benefits paid (67.7 ) (62.5 ) (21.2 ) (44.1 ) Fair value of plan assets at end of year 531.9 529.6 292.4 268.7 Funded status at end of year $ (111.1 ) $ (82.8 ) $ (42.8 ) $ (45.5 ) |
Net periodic benefit cost for the Company's retirement benefit plans | The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: U.S. Plans International Plans 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 12.2 $ 13.1 $ 15.4 $ 1.6 $ 1.4 $ 2.2 Interest cost 24.6 26.6 45.6 7.5 10.5 12.3 Expected return on plan assets (28.0 ) (30.1 ) (66.9 ) (11.1 ) (10.7 ) (18.2 ) Amortization of prior service cost 1.4 1.7 2.8 — 0.1 0.1 Recognition of net actuarial 23.1 41.5 (3.4 ) 0.1 19.4 (17.7 ) Curtailment (1.1 ) — — — (0.1 ) 0.6 Settlement — — 116.1 — — — Special termination benefits — — — — — 0.6 Net periodic benefit cost $ 32.2 $ 52.8 $ 109.6 $ (1.9 ) $ 20.6 $ (20.1 ) |
Defined Benefit Plans Amounts recognized on the Consolidated Balance Sheets | U.S. Plans International Plans 2017 2016 2017 2016 Amounts recognized on the Consolidated Balance Sheets: Non-current assets $ 6.7 $ 26.4 $ 13.0 $ 5.7 Current liabilities (4.8 ) (4.3 ) (1.5 ) (1.4 ) Non-current liabilities (113.0 ) (104.9 ) (54.3 ) (49.8 ) $ (111.1 ) $ (82.8 ) $ (42.8 ) $ (45.5 ) |
Defined Benefit Plans Amounts recognized in accumulated other comprehensive income | Amounts recognized in accumulated other comprehensive loss: Net prior service cost $ 8.1 $ 7.4 $ 0.5 $ 0.5 Accumulated other comprehensive loss $ 8.1 $ 7.4 $ 0.5 $ 0.5 Changes in prior service cost recognized in accumulated other comprehensive loss: Accumulated other comprehensive loss at beginning of year $ 7.4 $ 9.1 $ 0.5 $ 0.5 Prior service cost 2.8 — — — Recognized prior service cost (1.4 ) (1.7 ) — (0.1 ) (Loss) gain recognized due to curtailment (0.7 ) — — 0.1 Total recognized in accumulated other comprehensive loss at December 31 $ 8.1 $ 7.4 $ 0.5 $ 0.5 |
Target assets allocation and actual asset allocations for US pension plan assets | The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2017 and 2016 , was as follows: Current Target Allocation Percentage of Pension Plan Assets at December 31, Asset Category 2017 2016 Equity securities 10% to 16% 14% 12% Fixed income securities 70% to 90% 80% 78% Other investments 4% to 10% 6% 10% Total 100% 100% |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2016 : U.S. Pension Plans International Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 34.3 $ — $ — $ 34.3 $ 0.8 $ — $ — $ 0.8 Government and agency securities 44.0 2.6 — 46.6 — — — — Corporate bonds - investment grade — 65.7 — 65.7 — — — — Equity securities - U.S. companies 10.5 — — 10.5 — — — — Equity securities - international companies 6.2 — — 6.2 — — — — Mutual funds 41.5 — — 41.5 — — — — $ 136.5 $ 68.3 $ — $ 204.8 $ 0.8 $ — $ — $ 0.8 Investments measured at net asset value: Cash and cash equivalents $ — $ 3.4 Corporate bonds - investment grade — 2.7 Equity securities - international companies — 1.5 Common collective funds - domestic equities 14.0 — Common collective funds - international equities 14.1 33.4 Common collective funds - fixed income 217.1 74.6 Limited partnerships 39.6 — Real estate partnerships 22.1 — Other assets — 152.3 Risk parity 17.9 — Total Assets $ 529.6 $ 268.7 December 31, 2017 : U.S. Pension Plans International Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 27.2 $ — $ — $ 27.2 $ 4.8 $ — $ — $ 4.8 Government and agency securities 15.5 3.4 — 18.9 — — — — Corporate bonds - investment grade — 105.1 — 105.1 — — — — Mutual funds - fixed income 44.9 — — 44.9 — — — — Mutual funds - international equity 17.5 — — 17.5 — — — — $ 105.1 $ 108.5 $ — $ 213.6 $ 4.8 $ — $ — $ 4.8 Investments measured at net asset value: Cash and cash equivalents $ 0.2 $ 0.1 Corporate bonds - investment grade — 5.3 Equity securities - international companies — 1.0 Common collective funds - domestic equities 37.0 — Common collective funds - international equities 11.5 25.3 Common collective funds - fixed income 220.9 86.2 Limited partnerships 31.8 — Real estate partnerships 16.9 — Other assets — 169.7 Total Assets $ 531.9 $ 292.4 |
Employer contributions to defined benefit plans | Employer Contributions to Defined Benefit Plans 2016 $ 15.0 2017 11.5 2018 (planned) 10.4 |
Future pension benefit payments | Future benefit payments, including lump sum distributions, are expected to be as follows: Benefit Payments 2018 $ 67.4 2019 94.0 2020 64.6 2021 72.2 2022 65.2 2023-2027 300.4 |
Schedule of Assumptions Used [Table Text Block] | Assumptions 2017 2016 2015 U.S. Plans: Discount rate 4.34% to 4.50% 4.50% to 4.70% 3.98% to 4.64% Future compensation assumption 2.50% to 3.00% 2.50% to 3.00% 2.00% to 3.00% Expected long-term return on plan assets 5.75% to 6.50% 5.75% to 6.75% 6.00 % International Plans: Discount rate 1.25% to 9.00% 2.00% to 8.50% 1.50% to 8.75% Future compensation assumption 2.00% to 8.00% 2.20% to 8.00% 2.20% to 8.00% Expected long-term return on plan assets 0.75% to 9.25% 0.82% to 9.25% 2.25% to 9.25% Assumptions 2017 2016 U.S. Plans: Discount rate 3.75% to 3.80% 4.34% to 4.50% Future compensation assumption 2.50 % 2.00% to 3.00% International Plans: Discount rate 1.25% to 9.00% 1.25% to 9.00% Future compensation assumption 2.00% to 8.00% 2.00% to 8.00% |
Postretirement Benefit Plans (T
Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Post Retirement Benefit Plans | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheets measured at fair value on a recurring basis as of December 31, 2017 and 2016 : December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 108.5 $ 107.3 $ 1.2 $ — Cash and cash equivalents measured at net 13.1 Restricted cash 3.8 3.8 — — Short-term investments 16.2 — 16.2 — Short-term investments measured at net asset value 0.2 Foreign currency hedges 1.3 — 1.3 — Total Assets $ 143.1 $ 111.1 $ 18.7 $ — Liabilities: Foreign currency hedges $ 7.1 $ — $ 7.1 $ — Total Liabilities $ 7.1 $ — $ 7.1 $ — 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 at net 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 $ — |
Postretirement Benefit Plans [Member] | |
Post Retirement Benefit Plans | |
Schedule of Changes in Projected Benefit Obligations [Table Text Block] | 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 241.4 $ 262.7 Service cost 0.1 0.3 Interest cost 9.1 11.0 Plan amendments 1.2 (11.4 ) Actuarial (gains) losses (0.3 ) 4.3 Benefits paid (31.7 ) (25.5 ) Benefit obligation at end of year $ 219.8 $ 241.4 |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31 : 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 0.1 $ 0.3 $ 0.4 Interest cost 9.1 11.0 10.9 Expected return on plan assets (5.6 ) (6.3 ) (7.3 ) Amortization of prior service (credit) cost (1.0 ) 1.0 0.8 Recognition of net actuarial (gains) losses (4.0 ) 4.5 1.0 Curtailment — 0.1 — Net periodic benefit cost $ (1.4 ) $ 10.6 $ 5.8 |
Defined Benefit and postretirement benefit for Change in Plan Assets Amounts recognized on the Consolidated Balance Sheets | Amounts recognized on the Consolidated Balance Sheets: Current liabilities $ (4.8 ) $ (7.5 ) Non-current liabilities (122.6 ) (131.5 ) $ (127.4 ) $ (139.0 ) |
Defined Benefit and postretirement benefit for Change in Plan Assets Amounts recognized in accumulated other Comprehensive income | Amounts recognized in accumulated other comprehensive income: Net prior service cost $ (8.1 ) $ (10.3 ) Accumulated other comprehensive income $ (8.1 ) $ (10.3 ) Changes to prior service cost recognized in accumulated other comprehensive (income) loss: Accumulated other comprehensive income (loss) at beginning of year $ (10.3 ) $ 2.2 Prior service cost (credit) 1.2 (11.4 ) Recognized prior service credit (cost) 1.0 (1.0 ) Loss recognized due to curtailment — (0.1 ) Total recognized in accumulated other comprehensive income at December 31 $ (8.1 ) $ (10.3 ) |
Target assets allocation and actual asset allocations for US pension plan assets | Current Target Allocation Percentage of VEBA Assets at December 31, Asset Category 2017 2016 Equity securities 14% to 20% 17% 30% Fixed income securities 80% to 86% 83% 70% Total 100% 100% |
Future pension benefit payments | Future benefit payments are expected to be as follows: Gross Expected Medicare Subsidies Net Including Medicare Subsidies 2018 $ 24.9 $ 1.2 $ 23.7 2019 23.4 1.2 22.2 2020 22.0 1.3 20.7 2021 20.8 1.3 19.5 2022 19.6 1.3 18.3 2023-2027 80.9 6.3 74.6 |
Schedule of Assumptions Used [Table Text Block] | The following table summarizes assumptions used to measure the benefit obligation for the other postretirement benefit plans at December 31 : Assumptions: 2017 2016 Discount rate 3.57 % 3.97 % Assumptions: 2017 2016 2015 Discount rate 3.97 % 4.39 % 3.95 % Rate of return 6.00 % 6.00 % 6.25 % |
Schedule of Changes in Fair Value of Plan Assets [Table Text Block] | Change in plan assets: Fair value of plan assets at beginning of year $ 102.4 $ 112.1 Company contributions / payments 12.4 9.7 Return on plan assets 9.3 6.1 Benefits paid (31.7 ) (25.5 ) Fair value of plan assets at end of year 92.4 102.4 Funded status at end of year $ (127.4 ) $ (139.0 ) |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following table presents those investments of the Company’s VEBA trust assets measured at net asset value on a recurring basis as of December 31, 2017 and 2016 , respectively: 2017 2016 Assets: Cash and cash equivalents $ 13.0 $ 2.1 Common collective fund - U.S. equities 9.5 18.5 Common collective fund - international equities 6.7 12.3 Common collective fund - fixed income 63.2 69.5 Total Assets $ 92.4 $ 102.4 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic wise financial information | Geographic Financial Information: 2017 2016 2015 Net sales: United States $ 1,603.0 $ 1,478.6 $ 1,566.1 Americas excluding United States 333.2 308.2 339.7 Europe / Middle East / Africa 570.3 461.3 496.7 Asia-Pacific 497.3 421.7 469.8 $ 3,003.8 $ 2,669.8 $ 2,872.3 Property, Plant and Equipment, net: United States $ 392.1 $ 418.0 $ 446.7 Americas excluding United States 14.7 14.9 10.6 Europe / Middle East / Africa 203.4 141.1 92.5 Asia-Pacific 254.0 230.4 228.0 $ 864.2 $ 804.4 $ 777.8 |
Segment wise financial performance | The following tables provide segment financial information and a reconciliation of segment results to consolidated results: 2017 2016 2015 Net sales to external customers: Mobile Industries $ 1,640.0 $ 1,446.4 $ 1,558.3 Process Industries 1,363.8 1,223.4 1,314.0 $ 3,003.8 $ 2,669.8 $ 2,872.3 Segment EBIT: Mobile Industries $ 132.1 $ 87.1 $ 205.5 Process Industries 220.5 149.5 207.6 Total EBIT, for reportable segments $ 352.6 $ 236.6 $ 413.1 Corporate expenses (58.5 ) (61.4 ) (44.8 ) CDSOA income, net — 59.6 — Pension settlement charges — (1.6 ) (119.9 ) Interest expense (37.1 ) (33.5 ) (33.4 ) Interest income 2.9 1.9 2.7 Income before income taxes $ 259.9 $ 201.6 $ 217.7 2017 2016 Assets employed at year-end: Mobile Industries $ 1,775.7 $ 1,162.7 Process Industries 1,383.1 1,322.2 Corporate (1) 243.6 278.3 $ 3,402.4 $ 2,763.2 (1) Corporate assets include corporate buildings and cash and cash equivalents. 2017 2016 2015 Capital expenditures: Mobile Industries $ 57.3 $ 88.4 $ 47.5 Process Industries 46.2 48.4 57.5 Corporate 1.2 0.7 0.6 $ 104.7 $ 137.5 $ 105.6 Depreciation and amortization: Mobile Industries $ 70.0 $ 64.9 $ 61.4 Process Industries 66.6 65.6 68.1 Corporate 1.1 1.2 1.3 $ 137.7 $ 131.7 $ 130.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Variation of Effective Income Tax Rate from Continuing Operations from Statutory Federal Income Tax Rate [Table Text Block] | 2017 2016 2015 Income tax at the U.S. federal statutory rate $ 91.0 $ 70.6 $ 76.2 Adjustments: State and local income taxes, net of federal tax benefit 3.1 2.6 4.3 Tax on foreign remittances and U.S. tax on foreign income 93.0 8.3 13.8 Foreign losses without current tax benefits 8.9 6.4 5.3 Foreign earnings taxed at different rates including tax holidays (18.0 ) (5.2 ) (14.9 ) U.S. domestic manufacturing deduction (3.9 ) (5.0 ) (4.5 ) U.S. foreign tax credit (104.2 ) (8.0 ) (22.4 ) U.S. research tax credit (1.5 ) (0.6 ) (1.1 ) Accruals and settlements related to tax audits (34.4 ) (8.1 ) (5.9 ) Valuation allowance changes (12.6 ) 0.2 (34.7 ) Deferred taxes related to branch operations — (1.3 ) 11.6 U.S. Tax Reform 35.3 — — Other items, net 0.9 0.6 (1.4 ) Provision for income taxes $ 57.6 $ 60.5 $ 26.3 Effective income tax rate 22.2 % 30.0 % 12.1 % |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | 2017 2016 2015 United States $ 107.4 $ 102.3 $ 70.5 Non-United States 152.5 99.3 147.2 Income before income taxes $ 259.9 $ 201.6 $ 217.7 |
Components of deferred tax assets and liabilities | 2017 2016 Deferred tax assets: Accrued postretirement benefits cost $ 35.7 $ 56.8 Accrued pension cost 53.4 63.3 Other employee benefit accruals 6.4 11.5 Tax loss and credit carryforwards 92.6 84.7 Other, net 29.0 43.8 Valuation allowances (79.4 ) (85.5 ) $ 137.7 $ 174.6 Deferred tax liabilities - principally depreciation and amortization (120.7 ) (127.0 ) Net deferred tax assets $ 17.0 $ 47.6 |
Summary of unrecognized tax benefits for the years ended | The following table reconciles the Company’s total gross unrecognized tax benefits for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 Beginning balance, January 1 $ 39.2 $ 50.4 $ 57.5 Tax positions related to the current year: Additions 2.7 — 6.5 Tax positions related to prior years: Additions 6.9 5.7 5.0 Reductions (5.2 ) (7.8 ) (4.0 ) Settlements with tax authorities — (9.1 ) (14.6 ) Lapses in statutes of limitation (29.6 ) — — Ending balance, December 31 $ 14.0 $ 39.2 $ 50.4 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2017 2016 2015 Current: Federal $ 9.1 $ 44.1 $ 26.8 State and local 4.6 0.1 5.4 Foreign 44.3 31.3 16.3 $ 58.0 $ 75.5 $ 48.5 Deferred: Federal $ 13.6 $ (20.5 ) $ (13.7 ) State and local (4.6 ) 0.1 (3.9 ) Foreign (9.4 ) 5.4 (4.6 ) $ (0.4 ) $ (15.0 ) $ (22.2 ) United States and foreign tax provision on income $ 57.6 $ 60.5 $ 26.3 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following tables present the fair value hierarchy for those assets and liabilities on the Consolidated Balance Sheets measured at fair value on a recurring basis as of December 31, 2017 and 2016 : December 31, 2017 Total Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 108.5 $ 107.3 $ 1.2 $ — Cash and cash equivalents measured at net 13.1 Restricted cash 3.8 3.8 — — Short-term investments 16.2 — 16.2 — Short-term investments measured at net asset value 0.2 Foreign currency hedges 1.3 — 1.3 — Total Assets $ 143.1 $ 111.1 $ 18.7 $ — Liabilities: Foreign currency hedges $ 7.1 $ — $ 7.1 $ — Total Liabilities $ 7.1 $ — $ 7.1 $ — 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 at net 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 during the year ended December 31, 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 December 31, 2015 , using Level 3 inputs: Carrying Value Fair Value Adjustment Fair Value Long-lived assets held for sale: Repair business $ 5.8 $ (3.0 ) $ 2.8 Total long-lived assets held for sale $ 5.8 $ (3.0 ) $ 2.8 Long-lived assets held and used: Fixed assets $ 0.8 $ (0.3 ) $ 0.5 Total long-lived assets held and used $ 0.8 $ (0.3 ) $ 0.5 |
Derivatives and Hedging Activ49
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 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 and interest rate risk. Forward 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. From time to time, interest rate swaps are used to manage interest rate risk associated with the Company’s fixed, and floating-rate borrowings. The Company designates certain foreign currency forward contracts as cash flow hedges of forecasted revenues and certain interest rate hedges as cash flow hedges of fixed-rate borrowings. The Company does not purchase or hold any derivative financial instruments for trading purposes. As of December 31, 2017 and 2016 , the Company had $386.9 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, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted cash flows denominated in foreign currencies with forward contracts. When the dollar strengthens significantly against foreign currencies, the decline in the present value of future foreign currency revenue is offset by gains in the fair value of the forward contracts designated as hedges. Conversely, when the dollar weakens, the increase in the present value of future foreign currency cash flows is offset by losses in the fair value of the forward contracts. The maximum length of time over which the Company hedges it exposure to the variability in future cash flows for forecast transactions is generally eighteen months or less. Purpose for Derivative Instruments not designated as Hedging Instruments: For derivative instruments that are not designated as hedging instruments, the instruments are typically forward contracts. In general, the practice is to reduce volatility by selectively hedging transaction exposures including intercompany loans, accounts payable and accounts receivable. Intercompany loans between entities with different functional currencies typically are hedged with a forward contract at the inception of loan with a maturity date at the maturity of the loan. The revaluation of these contracts, as well as the revaluation of the underlying balance sheet items, is recorded directly to the income statement so the adjustment generally offsets the revaluation of the underlying balance sheet items to protect cash payments and reduce income statement volatility. The following table presents the fair value of the Company's derivative instruments at December 31, 2017 and 2016. Those balances are presented within other non-current assets and liabilities in the Consolidated Balance Sheets. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Foreign currency forward contracts $ 0.5 $ 2.3 $ 2.1 $ 0.5 Derivatives not designated as hedging instruments Foreign currency forward contracts 0.8 7.6 5.0 1.6 Total Derivatives $ 1.3 $ 9.9 $ 7.1 $ 2.1 The following tables present the impact of derivative instruments for the years ended December 31, 2017, 2016 and 2015, respectively, and their location within the Consolidated Statements of Income: Amount of gain or (loss) recognized in Year Ended December 31, Derivatives in cash flow hedging relationships 2017 2016 2015 Foreign currency forward contracts $ (4.7 ) $ (0.2 ) $ 3.0 Interest rate swaps (2.4 ) — — Total $ (7.1 ) $ (0.2 ) $ 3.0 Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Income (Loss) into income (effective portion) Year Ended December 31, Derivatives in cash flow hedging relationships Location of gain or (loss) recognized in income 2017 2016 2015 Foreign currency forward contracts Cost of products sold $ (1.4 ) $ — $ 1.5 Interest rate swaps Interest expense $ (0.4 ) $ (0.3 ) $ (0.3 ) Total $ (1.8 ) $ (0.3 ) $ 1.2 Amount of gain or (loss) recognized in income on derivative instruments Year Ended December 31, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2017 2016 2015 Foreign currency forward contracts Other income (expense), net $ (10.2 ) $ 0.1 $ (5.7 ) |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following table presents the fair value of the Company's derivative instruments at December 31, 2017 and 2016. Those balances are presented within other non-current assets and liabilities in the Consolidated Balance Sheets. Asset Derivatives Liability Derivatives Derivatives designated as hedging instruments December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Foreign currency forward contracts $ 0.5 $ 2.3 $ 2.1 $ 0.5 Derivatives not designated as hedging instruments Foreign currency forward contracts 0.8 7.6 5.0 1.6 Total Derivatives $ 1.3 $ 9.9 $ 7.1 $ 2.1 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] | The following tables present the impact of derivative instruments for the years ended December 31, 2017, 2016 and 2015, respectively, and their location within the Consolidated Statements of Income: Amount of gain or (loss) recognized in Year Ended December 31, Derivatives in cash flow hedging relationships 2017 2016 2015 Foreign currency forward contracts $ (4.7 ) $ (0.2 ) $ 3.0 Interest rate swaps (2.4 ) — — Total $ (7.1 ) $ (0.2 ) $ 3.0 Amount of gain or (loss) reclassified from Accumulated Other Comprehensive Income (Loss) into income (effective portion) Year Ended December 31, Derivatives in cash flow hedging relationships Location of gain or (loss) recognized in income 2017 2016 2015 Foreign currency forward contracts Cost of products sold $ (1.4 ) $ — $ 1.5 Interest rate swaps Interest expense $ (0.4 ) $ (0.3 ) $ (0.3 ) Total $ (1.8 ) $ (0.3 ) $ 1.2 |
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block] | Amount of gain or (loss) recognized in income on derivative instruments Year Ended December 31, Derivatives not designated as hedging instruments Location of gain or (loss) recognized in income 2017 2016 2015 Foreign currency forward contracts Other income (expense), net $ (10.2 ) $ 0.1 $ (5.7 ) |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | 2017 1st 2nd 3rd 4th Total Net sales $ 703.8 $ 750.6 $ 771.4 $ 778.0 $ 3,003.8 Gross profit (1) 180.5 201.8 217.0 211.1 810.4 Selling, general and administrative expenses (1) 119.6 123.8 134.0 144.0 521.4 Impairment and restructuring charges 1.7 0.8 1.3 0.5 4.3 Net income (2) 38.1 82.0 54.1 28.1 202.3 Net (loss) income attributable to noncontrolling interests (0.1 ) (0.5 ) 0.6 (1.1 ) (1.1 ) Net income attributable to The Timken Company 38.2 82.5 53.5 29.2 203.4 Net income per share - Basic: $ 0.49 $ 1.06 $ 0.69 $ 0.38 $ 2.62 Net income per share - Diluted: $ 0.48 $ 1.04 $ 0.68 $ 0.37 $ 2.58 Dividends per share $ 0.26 $ 0.27 $ 0.27 $ 0.27 $ 1.07 2016 1st 2nd 3rd 4th Total Net sales $ 684.0 $ 673.6 $ 657.4 $ 654.8 $ 2,669.8 Gross profit (3) 183.1 184.5 169.7 131.2 668.5 Selling, general and administrative expenses (3) 116.1 108.0 107.2 139.4 470.7 Impairment and restructuring charges (4) 10.5 2.9 5.3 3.0 21.7 Net income (loss) (5) 65.8 48.2 34.0 (6.9 ) 141.1 Net income (loss) attributable to noncontrolling interests (0.1 ) — 0.4 — 0.3 Net income (loss) attributable to The Timken Company 65.9 48.2 33.6 (6.9 ) 140.8 Net income (loss) per share - Basic: $ 0.83 $ 0.61 $ 0.43 $ (0.09 ) $ 1.79 Net income (loss) per share - Diluted: $ 0.82 $ 0.61 $ 0.43 $ (0.09 ) $ 1.78 Dividends per share $ 0.26 $ 0.26 $ 0.26 $ 0.26 $ 1.04 |
Significant Accounting Polici51
Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | |
Property, Plant and Equipment [Line Items] | ||||
Payments Related to Tax Withholding for Share-based Compensation | $ 11.4 | $ 1.9 | $ 4 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (47.1) | 22.8 | 64.8 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (0.5) | |||
Accounts Receivable, Net, Current | 524.9 | 438 | ||
Other Assets, Noncurrent | 25 | 34.9 | ||
Long-term Debt, Excluding Current Maturities | 854.2 | 635 | ||
Short-term Investments | 16.4 | 11.7 | ||
Foreign Currency Transaction Gain (Loss), before Tax | $ 3.7 | $ 5.6 | 0.3 | |
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years | ||
Income Tax Expense (Benefit) | $ 57.6 | $ 60.5 | 26.3 | |
Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 30 years | |||
Software and Software Development Costs [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 10 years | |||
Machinery and Equipment [Member] | Maximum [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Useful Life | 20 years | |||
Accumulated Other Comprehensive Income (Loss) | ||||
Property, Plant and Equipment [Line Items] | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | $ (44.7) | 24.5 | 62.7 | |
Accounting Standard Update 2016-09 [Domain] | Retained Earnings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1 | |||
Adjustments for New Accounting Pronouncement [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Income Tax Expense (Benefit) | 1.9 | |||
Contracts Accounted for under Percentage of Completion [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Revenues | 83 | 68 | $ 66 | |
Timken Gears and Services [Member] | Contracts Accounted for under Percentage of Completion [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Accounts Receivable, Net, Current | $ 67.3 | $ 63.5 |
Significant Accounting Polici52
Significant Accounting Policies Revenue Recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in Accounting Estimate [Line Items] | |||
Accounts Receivable, Net, Current | $ 524.9 | $ 438 | |
Contracts Accounted for under Percentage of Completion [Member] | |||
Change in Accounting Estimate [Line Items] | |||
Revenues | 83 | 68 | $ 66 |
Timken Gears and Services [Member] | Contracts Accounted for under Percentage of Completion [Member] | |||
Change in Accounting Estimate [Line Items] | |||
Accounts Receivable, Net, Current | $ 67.3 | $ 63.5 |
Significant Accounting Polici53
Significant Accounting Policies Restricted Cash (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Percentage of FIFO Inventory | 55.00% | ||
Restricted Cash and Cash Equivalents, Current | $ 3.8 | $ 2.7 | |
Increase (Decrease) in Restricted Cash | $ 1.2 | 2.5 | $ (14.8) |
Percentage of LIFO Inventory | 45.00% | ||
Financial Guarantee [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Increase (Decrease) in Restricted Cash | $ 0.5 | ||
Dividend Declared [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Increase (Decrease) in Restricted Cash | $ 0.6 |
Significant Accounting Polici54
Significant Accounting Policies Inventories (Details) | Dec. 31, 2017 |
Inventories [Abstract] | |
Percentage of FIFO Inventory | 55.00% |
Percentage of inventories valued by LIFO method | 45.00% |
Significant Accounting Polici55
Significant Accounting Policies Short Term Investments (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments [Abstract] | ||
Short-term Investments | $ 16.4 | $ 11.7 |
Change in Accounting Principl56
Change in Accounting Principles (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2017 | Dec. 31, 2014 | |
Cost of products sold | $ 2,193.4 | $ 2,001.3 | $ 2,052.8 | ||||||||||
Gross Profit | $ 211.1 | $ 217 | $ 201.8 | $ 180.5 | $ 131.2 | $ 169.7 | $ 184.5 | $ 183.1 | 810.4 | 668.5 | 819.5 | ||
Selling, general and administrative expenses | 144 | 134 | 123.8 | 119.6 | 139.4 | 107.2 | 108 | 116.1 | 521.4 | 470.7 | 457.7 | ||
Pension Settlement Charges | 0 | 1.6 | 119.9 | ||||||||||
Operating Income | 284.7 | 174.5 | 255.9 | ||||||||||
Income Before Income Taxes | 259.9 | 201.6 | 217.7 | ||||||||||
Provision for income taxes | 57.6 | 60.5 | 26.3 | ||||||||||
Net income (loss) | 28.1 | 54.1 | 82 | 38.1 | (6.9) | 34 | 48.2 | 65.8 | 202.3 | 141.1 | 191.4 | ||
Net Income (Loss) Attributable to The Timken Company | $ 29.2 | $ 53.5 | $ 82.5 | $ 38.2 | $ (6.9) | $ 33.6 | $ 48.2 | $ 65.9 | $ 203.4 | $ 140.8 | $ 188.6 | ||
Basic earnings per share | $ 0.38 | $ 0.69 | $ 1.06 | $ 0.49 | $ (0.09) | $ 0.43 | $ 0.61 | $ 0.83 | $ 2.62 | $ 1.79 | $ 2.23 | ||
Diluted earnings per share | $ 0.37 | $ 0.68 | $ 1.04 | $ 0.48 | $ (0.09) | $ 0.43 | $ 0.61 | $ 0.82 | $ 2.58 | $ 1.78 | $ 2.21 | ||
Foreign currency translation adjustments | $ 47.1 | $ (22.8) | $ (64.8) | ||||||||||
Pension and postretirement liability adjustments | (1.8) | 1.1 | (2.4) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 42 | (21.6) | (66.1) | ||||||||||
Comprehensive Income, net of tax | 244.3 | 119.5 | 125.3 | ||||||||||
Less: comprehensive income attributable to noncontrolling interest | 1.3 | 2 | 0.7 | ||||||||||
Comprehensive Income Attributable to The Timken Company | 243 | 117.5 | 124.6 | ||||||||||
Inventories, net | $ 738.9 | $ 553.7 | 738.9 | 553.7 | |||||||||
Total Current Assets | 1,500.1 | 1,211.9 | 1,500.1 | 1,211.9 | |||||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 61 | 51.4 | 61 | 51.4 | |||||||||
Total Other Assets | 1,038.1 | 746.9 | 1,038.1 | 746.9 | |||||||||
Total Assets | (3,402.4) | (2,763.2) | (3,402.4) | (2,763.2) | |||||||||
Retained Earnings (Accumulated Deficit) | 1,408.4 | 1,289.3 | 1,408.4 | 1,289.3 | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (38.3) | (77.9) | (38.3) | (77.9) | (54.6) | ||||||||
Total Shareholders’ Equity | 1,442.7 | 1,279.7 | 1,442.7 | 1,279.7 | |||||||||
Noncontrolling interest | 32.2 | 31.2 | 32.2 | 31.2 | |||||||||
Total Equity | 1,474.9 | 1,310.9 | 1,474.9 | 1,310.9 | 1,349.6 | $ 1,594.3 | |||||||
Deferred income tax provision (benefit) | (0.4) | (15) | (22.2) | ||||||||||
Pension and other postretirement expense | 28.9 | 84 | 95.3 | ||||||||||
Liabilities and Equity | 3,402.4 | 2,763.2 | 3,402.4 | 2,763.2 | |||||||||
Increase (Decrease) in Inventories | (132.1) | 10.1 | 53.1 | ||||||||||
AOCI Attributable to Parent [Member] | |||||||||||||
Foreign currency translation adjustments | 44.7 | (24.5) | (62.7) | ||||||||||
Pension and postretirement liability adjustments | (1.8) | 1.1 | (2.4) | ||||||||||
Earnings invested in the business | $ 492 | ||||||||||||
Total Equity | (38.3) | (77.9) | (38.3) | (77.9) | (54.6) | 9.4 | |||||||
Retained Earnings [Member] | |||||||||||||
Net income (loss) | 203.4 | 140.8 | 188.6 | ||||||||||
Earnings invested in the business | 487 | ||||||||||||
Total Equity | 1,408.4 | 1,289.3 | 1,408.4 | 1,289.3 | 1,230.1 | $ 1,128.5 | |||||||
Scenario, Previous Accounting Guidance [Member] | |||||||||||||
Cost of products sold | 2,199 | ||||||||||||
Gross Profit | 804.8 | ||||||||||||
Selling, general and administrative expenses | 518 | ||||||||||||
Pension Settlement Charges | 17.3 | ||||||||||||
Operating Income | 265.2 | ||||||||||||
Income Before Income Taxes | 240.4 | ||||||||||||
Provision for income taxes | 51.1 | ||||||||||||
Net income (loss) | 189.3 | 152.9 | (68) | ||||||||||
Net Income (Loss) Attributable to The Timken Company | $ 190.4 | 152.6 | (70.8) | ||||||||||
Basic earnings per share | $ 2.45 | ||||||||||||
Diluted earnings per share | $ 2.41 | ||||||||||||
Foreign currency translation adjustments | (32.8) | (73.5) | |||||||||||
Pension and postretirement liability adjustments | $ (11.2) | 0.6 | (265.9) | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | 55 | (33.3) | 193.5 | ||||||||||
Comprehensive Income, net of tax | 119.6 | 125.5 | |||||||||||
Less: comprehensive income attributable to noncontrolling interest | 0.8 | ||||||||||||
Comprehensive Income Attributable to The Timken Company | 117.6 | 124.7 | |||||||||||
Inventories, net | 731 | 731 | |||||||||||
Total Current Assets | 1,492.2 | 1,492.2 | |||||||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 64 | 64 | |||||||||||
Total Other Assets | 1,041.1 | 1,041.1 | |||||||||||
Total Assets | (3,397.5) | (3,397.5) | |||||||||||
Retained Earnings (Accumulated Deficit) | 1,634.7 | 1,634.7 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (269.4) | (269.4) | |||||||||||
Total Shareholders’ Equity | 1,437.9 | 1,437.9 | |||||||||||
Noncontrolling interest | 32.1 | 32.1 | |||||||||||
Total Equity | 1,470 | 1,470 | |||||||||||
Deferred income tax provision (benefit) | (6.9) | (6.3) | (170.1) | ||||||||||
Pension and other postretirement expense | 48.4 | 63.5 | 502.9 | ||||||||||
Liabilities and Equity | 3,397.5 | 2,758.3 | 3,397.5 | 2,758.3 | |||||||||
Increase (Decrease) in Inventories | 52.8 | ||||||||||||
Scenario, Previously Reported [Member] | |||||||||||||
Cost of products sold | 1,975 | 2,078.4 | |||||||||||
Gross Profit | 694.8 | 793.9 | |||||||||||
Selling, general and administrative expenses | 450 | 494.3 | |||||||||||
Pension Settlement Charges | 28.1 | 465 | |||||||||||
Operating Income | 195 | (151.4) | |||||||||||
Income Before Income Taxes | 222.1 | (189.6) | |||||||||||
Provision for income taxes | $ 69.2 | $ (121.6) | |||||||||||
Basic earnings per share | $ 1.94 | $ (0.84) | |||||||||||
Diluted earnings per share | $ 1.92 | $ (0.84) | |||||||||||
Inventories, net | 545.8 | $ 545.8 | |||||||||||
Total Current Assets | 1,204 | 1,204 | |||||||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 54.4 | 54.4 | |||||||||||
Total Other Assets | 749.9 | 749.9 | |||||||||||
Total Assets | (2,758.3) | (2,758.3) | |||||||||||
Retained Earnings (Accumulated Deficit) | 1,528.6 | 1,528.6 | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (322) | (322) | |||||||||||
Total Shareholders’ Equity | 1,274.9 | 1,274.9 | |||||||||||
Noncontrolling interest | 31.1 | 31.1 | |||||||||||
Total Equity | 1,306 | 1,306 | |||||||||||
Restatement Adjustment [Member] | |||||||||||||
Cost of products sold | (5.6) | 26.3 | $ (25.6) | ||||||||||
Gross Profit | 32.9 | 5.6 | (26.3) | 25.6 | |||||||||
Selling, general and administrative expenses | 27.4 | 3.4 | 20.7 | (36.6) | |||||||||
Pension Settlement Charges | (17.3) | (26.5) | (345.1) | ||||||||||
Operating Income | 19.5 | (20.5) | 407.3 | ||||||||||
Income Before Income Taxes | 19.5 | (20.5) | 407.3 | ||||||||||
Provision for income taxes | 6.5 | (8.7) | 147.9 | ||||||||||
Net income (loss) | 31 | 13 | (11.8) | 259.4 | |||||||||
Net Income (Loss) Attributable to The Timken Company | $ 13 | $ (11.8) | $ 259.4 | ||||||||||
Basic earnings per share | $ 0.17 | $ (0.15) | $ 3.07 | ||||||||||
Diluted earnings per share | $ 0.17 | $ (0.14) | $ 3.05 | ||||||||||
Foreign currency translation adjustments | $ 10 | $ 8.7 | |||||||||||
Pension and postretirement liability adjustments | $ 13 | (1.7) | 268.3 | ||||||||||
Other Comprehensive Income (Loss), Net of Tax | (13) | 11.7 | (259.6) | ||||||||||
Comprehensive Income, net of tax | (0.1) | (0.2) | |||||||||||
Less: comprehensive income attributable to noncontrolling interest | (0.1) | ||||||||||||
Comprehensive Income Attributable to The Timken Company | (0.1) | (0.1) | |||||||||||
Inventories, net | 7.9 | 7.9 | 7.9 | 7.9 | |||||||||
Total Current Assets | 7.9 | 7.9 | 7.9 | 7.9 | |||||||||
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | (3) | (3) | (3) | (3) | |||||||||
Total Other Assets | (3) | (3) | (3) | (3) | |||||||||
Total Assets | (4.9) | (4.9) | (4.9) | (4.9) | $ (5) | ||||||||
Retained Earnings (Accumulated Deficit) | (226.3) | (239.3) | (226.3) | (239.3) | |||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 231.1 | 244.1 | 231.1 | 244.1 | |||||||||
Total Shareholders’ Equity | 4.8 | 4.8 | 4.8 | 4.8 | |||||||||
Noncontrolling interest | 0.1 | 0.1 | 0.1 | 0.1 | |||||||||
Total Equity | 4.9 | 4.9 | 4.9 | 4.9 | |||||||||
Deferred income tax provision (benefit) | 6.5 | (8.7) | 147.9 | ||||||||||
Pension and other postretirement expense | (19.5) | 20.5 | (407.6) | ||||||||||
Liabilities and Equity | $ 4.9 | $ 4.9 | $ 4.9 | $ 4.9 | |||||||||
Increase (Decrease) in Inventories | $ (0.3) |
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. 01, 2015 | Apr. 30, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||||||||||||||||||||
Property, plant and equipment | $ 37.9 | $ 37.9 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 1.1 | 1.1 | |||||||||||||||||||
Asset Impairment Charges | $ 0.1 | $ 3.9 | 3.3 | ||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 | 0 | |||||||||||||||||||
Cash Acquired from Acquisition | 35 | 2.5 | 0.1 | ||||||||||||||||||
Net sales | $ 778 | $ 771.4 | $ 750.6 | $ 703.8 | $ 654.8 | $ 657.4 | $ 673.6 | $ 684 | 3,003.8 | 2,669.8 | 2,872.3 | $ 20.6 | |||||||||
Proceeds from Divestiture of Businesses | $ 2.8 | 43.4 | |||||||||||||||||||
Goodwill | $ 70.8 | 70.8 | |||||||||||||||||||
Groeneveld [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 3, 2017 | ||||||||||||||||||||
EDT [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | Oct. 31, 2016 | ||||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 0.6 | ||||||||||||||||||||
Lovejoy [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 8, 2016 | ||||||||||||||||||||
2016 Acquisitions [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Property, plant and equipment | 16.5 | 16.5 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 5.3 | 5.3 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.2 | 2.2 | |||||||||||||||||||
Cash Acquired from Acquisition | 1.9 | ||||||||||||||||||||
Business Combination, Acquisition Related Costs | 1.7 | ||||||||||||||||||||
Goodwill | $ 30.6 | 30.6 | |||||||||||||||||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 61 | ||||||||||||||||||||
Business Combination, Consideration Transferred | $ 74.7 | ||||||||||||||||||||
Timken Belts [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | Sep. 1, 2015 | ||||||||||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | $ 0.7 | ||||||||||||||||||||
Cash Acquired from Acquisition | 0.1 | ||||||||||||||||||||
Business Combination, Acquisition Related Costs | 1 | ||||||||||||||||||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 140 | ||||||||||||||||||||
Business Combination, Consideration Transferred | $ 213.7 | ||||||||||||||||||||
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] | |||||||||||||||||||||
Property, plant and equipment | 31.5 | 31.5 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 3.3 | 3.3 | |||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.9 | 2.9 | |||||||||||||||||||
Cash Acquired from Acquisition | 35.4 | ||||||||||||||||||||
Business Combination, Acquisition Related Costs | 3.7 | ||||||||||||||||||||
Goodwill | $ 149.7 | 149.7 | |||||||||||||||||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 146.2 | ||||||||||||||||||||
Business Combination, Consideration Transferred | 346.2 | ||||||||||||||||||||
ABC Bearings [Member] | |||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 5, 2017 | ||||||||||||||||||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 29 |
Acquisitions and Divestitures58
Acquisitions and Divestitures - Purchase Price Allocation Identifiable Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||||||||||
Document Period End Date | Dec. 31, 2017 | |||||||||||
Business Combination Pension Liability | $ 2.3 | |||||||||||
Accounts receivable | 13.3 | |||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 27.9 | $ 27.9 | ||||||||||
Inventories | 48.5 | |||||||||||
Property, plant and equipment | 37.9 | |||||||||||
Goodwill | 70.8 | |||||||||||
Other intangible assets | 63.9 | |||||||||||
Net sales | $ 778 | $ 771.4 | $ 750.6 | $ 703.8 | 654.8 | $ 657.4 | $ 673.6 | $ 684 | $ 3,003.8 | $ 2,669.8 | 2,872.3 | $ 20.6 |
business combination postretirement liability assumed | 1.1 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 1.1 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0 | |||||||||||
Total assets acquired | 235.5 | |||||||||||
Accounts payable, trade | 10.2 | |||||||||||
Salaries, wages and benefits | 1.1 | |||||||||||
Other current liabilities | 1.3 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 5.9 | |||||||||||
Other non-current liabilities | 0 | |||||||||||
Total liabilities assumed | 21.9 | |||||||||||
Net assets acquired | 213.6 | |||||||||||
Technology-Based Intangible Assets [Member] | ||||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Intangible Assets, Weighted Average Life | 16 years | 19 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 29.8 | 10.1 | $ 29.8 | $ 10.1 | ||||||||
Trade names [Member] | ||||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Intangible Assets, Weighted Average Life | 13 years | 5 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2.2 | 0.2 | $ 2.2 | $ 0.2 | ||||||||
Customer Relationships [Member] | ||||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Intangible Assets, Weighted Average Life | 17 years | 20 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 108.9 | 13.5 | $ 108.9 | $ 13.5 | ||||||||
Software and Software Development Costs [Member] | ||||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Intangible Assets, Weighted Average Life | 3 years | 4 years | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1.4 | 0.1 | $ 1.4 | $ 0.1 | ||||||||
Trade names [Member] | ||||||||||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||||||||||
Indefinite-lived Intangible Assets Acquired | 31.1 | 3.7 | $ 31.1 | $ 3.7 | ||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Intangible Assets, Weighted Average Life | 0 years | 0 years | ||||||||||
2017 Acquisitions [Member] | ||||||||||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||||||||||
Business Combination Pension Liability | 0 | $ 0 | ||||||||||
Accounts receivable | 27.6 | $ 27.6 | ||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Intangible Assets, Weighted Average Life | 15 years | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 173.6 | $ 173.6 | ||||||||||
Inventories | 29.4 | 29.4 | ||||||||||
Property, plant and equipment | 31.5 | 31.5 | ||||||||||
Goodwill | 149.7 | 149.7 | ||||||||||
Other intangible assets | 173.6 | 173.6 | ||||||||||
business combination postretirement liability assumed | 0 | 0 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 3.3 | 3.3 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 1.8 | 1.8 | ||||||||||
Total assets acquired | 416.9 | 416.9 | ||||||||||
Accounts payable, trade | 9.5 | 9.5 | ||||||||||
Salaries, wages and benefits | 5.8 | 5.8 | ||||||||||
Other current liabilities | 8.6 | 8.6 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.9 | 2.9 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 42.2 | 42.2 | ||||||||||
Other non-current liabilities | 1 | 1 | ||||||||||
Total liabilities assumed | 70.1 | 70.1 | ||||||||||
Net assets acquired | 346.8 | 346.8 | ||||||||||
2016 Acquisitions [Member] | ||||||||||||
Business Acquisition Purchase Price Allocation Identifiable Intangible Assets [Line Items] | ||||||||||||
Business Combination Pension Liability | 0 | $ 0 | ||||||||||
Accounts receivable | 8.4 | 8.4 | ||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Inventories | 17.8 | 17.8 | ||||||||||
Property, plant and equipment | 16.5 | 16.5 | ||||||||||
Goodwill | 30.6 | 30.6 | ||||||||||
Other intangible assets | 27.9 | 27.9 | ||||||||||
business combination postretirement liability assumed | 0 | 0 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 5.3 | 5.3 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0.1 | 0.1 | ||||||||||
Total assets acquired | 106.6 | 106.6 | ||||||||||
Accounts payable, trade | 8.1 | 8.1 | ||||||||||
Salaries, wages and benefits | 1.3 | 1.3 | ||||||||||
Other current liabilities | 4.4 | 4.4 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 2.2 | 2.2 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 10.4 | 10.4 | ||||||||||
Other non-current liabilities | 7.6 | 7.6 | ||||||||||
Total liabilities assumed | 34 | 34 | ||||||||||
Net assets acquired | 72.6 | 72.6 | ||||||||||
Short-term Debt [Member] | ||||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Other current liabilities | $ 0 | |||||||||||
Short-term Debt [Member] | 2017 Acquisitions [Member] | ||||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Other current liabilities | $ 0.1 | $ 0.1 | ||||||||||
Short-term Debt [Member] | 2016 Acquisitions [Member] | ||||||||||||
Business Acquisition Purchase price allocation identifiable intangible assets | ||||||||||||
Other current liabilities | $ 0 | $ 0 |
Acquisitions and Divestitures59
Acquisitions and Divestitures - Fair Value of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 27.9 | ||
Business Acquisition Purchase Price Allocation Assets [Abstract] | |||
Accounts receivable | $ 13.3 | ||
Inventories | 48.5 | ||
Property, plant and equipment | 37.9 | ||
Goodwill | 70.8 | ||
Other intangible assets | 63.9 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 0 | ||
Total assets acquired | 235.5 | ||
Liabilities: | |||
Accounts payable, trade | 10.2 | ||
Salaries, wages and benefits | 1.1 | ||
Other current liabilities | 1.3 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 0 | ||
Business Combination Pension Liability | 2.3 | ||
business combination postretirement liability assumed | 1.1 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 5.9 | ||
Other non-current liabilities | 0 | ||
Total liabilities assumed | 21.9 | ||
Net assets acquired | $ 213.6 | ||
Trade Names [Member] | |||
Business Acquisition [Line Items] | |||
Indefinite-lived Intangible Assets Acquired | $ 31.1 | $ 3.7 | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 0 years | 0 years | |
Other Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | 4 years | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 0.2 | $ 0.3 |
Acquisitions and Divestitures A
Acquisitions and Divestitures Acquisitions and Divestitures - Divestitures Narrative (Details) - USD ($) $ in Millions | Jul. 05, 2017 | Apr. 30, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Net sales | $ 778 | $ 771.4 | $ 750.6 | $ 703.8 | $ 654.8 | $ 657.4 | $ 673.6 | $ 684 | $ 3,003.8 | $ 2,669.8 | $ 2,872.3 | $ 20.6 | |||
Proceeds from Divestiture of Businesses | $ 2.8 | $ 43.4 | |||||||||||||
Gain (Loss) on Disposition of Business | $ 0.3 | $ 29 | 0 | 0 | 28.7 | ||||||||||
Asset Impairment Charges | $ 0.1 | $ 3.9 | $ 3.3 | ||||||||||||
ABC Bearings [Member] | |||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||
Business Acquisition, Effective Date of Acquisition | Jul. 5, 2017 |
Investment in Joint Venture I61
Investment in Joint Venture Investment in Joint Venture Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Parent | 51.00% | ||
Payments to Acquire Interest in Joint Venture | $ 9.7 | $ 6.9 | |
Holmes Service Limited [Domain] | |||
Schedule of Equity Method Investments [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 49.00% | ||
Payments to Acquire Interest in Joint Venture | 9.3 | 6.6 | |
Holme Service Limited [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Interest in Joint Venture | $ 9.3 | $ 6.6 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Income (Loss) from Continuing Operations Attributable to Parent | $ 203.4 | $ 140.8 | $ 188.6 | ||||||||
Numerator: | |||||||||||
Less: undistributed earnings allocated to nonvested stock | $ 0 | $ 0 | $ 0 | ||||||||
Income (Loss) from Continuing Operations, Per Basic and Diluted Share | $ 203,400,000 | $ 140,800,000 | $ 188,600,000 | ||||||||
Denominator: | |||||||||||
Weighted-average number of shares outstanding - basic | 77,736,398 | 78,516,029 | 84,631,778 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options and awards - based on the treasury stock method (in shares) | 1,174,751 | 718,295 | 714,468 | ||||||||
Weighted-average number of shares outstanding, assuming dilution of stock options and awards | 78,911,149 | 79,234,324 | 85,346,246 | ||||||||
Earnings Per Share, Basic | $ 0.38 | $ 0.69 | $ 1.06 | $ 0.49 | $ (0.09) | $ 0.43 | $ 0.61 | $ 0.83 | $ 2.62 | $ 1.79 | $ 2.23 |
Earnings Per Share, Diluted | $ 0.37 | $ 0.68 | $ 1.04 | $ 0.48 | $ (0.09) | $ 0.43 | $ 0.61 | $ 0.82 | $ 2.58 | $ 1.78 | $ 2.21 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share (Textual) [Abstract] | |||
Antidilutive stock options outstanding | 512,657 | 2,826,733 | 1,986,907 |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive loss | $ (77.9) | $ (54.6) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 36 | (11.6) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 2.9 | 3.1 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 3.1 | (13.1) | |
Other Comprehensive Income (Loss), Net of Tax | 42 | (21.6) | $ (66.1) |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | (2.4) | (1.7) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 39.6 | (23.3) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (38.3) | (77.9) | (54.6) |
Foreign currency translation adjustment [Member] | |||
Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive loss | (79.8) | (55.3) | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 47.1 | (22.8) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 47.1 | (22.8) | |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | (2.4) | (1.7) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 44.7 | (24.5) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (35.1) | (79.8) | (55.3) |
Pension and postretirement liability adjustment [Member] | |||
Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive loss | 1.5 | 0.4 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (4) | 11.4 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1.1 | 2.8 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1.1 | (13.1) | |
Other Comprehensive Income (Loss), Net of Tax | (1.8) | 1.1 | |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.8) | 1.1 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (0.3) | 1.5 | 0.4 |
Derivative financial instruments fair value adjustment [Member] | |||
Accumulated Other Comprehensive Loss | |||
Accumulated other comprehensive loss | 0.4 | 0.3 | |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (7.1) | (0.2) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1.8 | 0.3 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 2 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (3.3) | 0.1 | |
Other Comprehensive (Income) Loss, Net of Tax, Portion Attributable to Noncontrolling Interest | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (3.3) | 0.1 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (2.9) | $ 0.4 | $ 0.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Abstract] | ||
Other Inventory, Supplies, Gross | $ 29 | $ 28.2 |
Inventories: | ||
Raw materials | 90.4 | 54.9 |
Work in process | 245.2 | 182.9 |
Finished products | 404.3 | 308.8 |
Subtotal | 768.9 | 574.8 |
Allowance for surplus and obsolete inventory | (30) | (21.1) |
Total Inventories, net | $ 738.9 | $ 553.7 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | ||
Percentage of inventories valued by LIFO method | 45.00% | |
Inventory, LIFO Reserve | $ 167.6 | $ 179.5 |
Percentage of inventories valued by FIFO method | 55.00% | |
Inventory, LIFO Reserve, Period Charge | $ 11.9 | $ (4.7) |
Property, Plant and Equipment67
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Abstract] | |||
Property, Plant and Equipment, Other, Gross | $ 483 | $ 425.4 | |
Property, Plant and Equipment: | |||
Machinery and equipment | 1,922.6 | 1,807.6 | |
Subtotal | 2,405.6 | 2,233 | |
Less allowances for depreciation | (1,541.4) | (1,428.6) | |
Property, Plant and Equipment - net | $ 864.2 | $ 804.4 | $ 777.8 |
Property, Plant and Equipment -
Property, Plant and Equipment - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant and Equipment (Textual) [Abstract] | ||||
Depreciation expense | $ 97,700,000 | $ 95,500,000 | $ 94,600,000 | |
Fixed Asset Write-Off | $ 9,700,000 | |||
Percent of Fixed Asset Write off relating to prior periods | 91.00% | |||
After Tax Amount of Fixed Asset Write Off | $ 6,100,000 | |||
Earnings per share effect of fixed asset write-off | $ 0.07 |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | |||
Schedule of Goodwill [Table Text Block] | Year ended December 31, 2016 : Mobile Industries Process Industries Total Beginning Balance $ 97.0 $ 230.3 $ 327.3 Acquisitions 0.7 29.9 30.6 Other (0.5 ) 0.1 (0.4 ) Ending Balance $ 97.2 $ 260.3 $ 357.5 Year ended December 31, 2017 : Mobile Industries Process Industries Total Beginning Balance $ 97.2 $ 260.3 $ 357.5 Acquisitions 150.8 (1.1 ) 149.7 Other 6.3 (1.7 ) 4.6 Ending Balance $ 254.3 $ 257.5 $ 511.8 | ||
Amortization of Intangible Assets | $ 40 | $ 36.2 | $ 36.2 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 41.4 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 35.5 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 30.9 | ||
Change in the carrying amount of Goodwill | |||
Ending Balance | 511.8 | 357.5 | 327.3 |
Goodwill, Acquired During Period | 149.7 | 30.6 | |
Goodwill, Other Increase (Decrease) | (4.6) | 0.4 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 27.2 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 23.1 | ||
Mobile Industries [Member] | |||
Goodwill [Line Items] | |||
Number of Reporting Units | segment | 4 | ||
Change in the carrying amount of Goodwill | |||
Ending Balance | $ 254.3 | 97.2 | 97 |
Goodwill, Acquired During Period | 150.8 | 0.7 | |
Goodwill, Other Increase (Decrease) | $ (6.3) | 0.5 | |
Process Industries [Member] | |||
Goodwill [Line Items] | |||
Number of Reporting Units | segment | 2 | ||
Change in the carrying amount of Goodwill | |||
Ending Balance | $ 257.5 | 260.3 | $ 230.3 |
Goodwill, Acquired During Period | (1.1) | 29.9 | |
Goodwill, Other Increase (Decrease) | $ 1.7 | $ (0.1) |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | $ 733.7 | $ 575.8 |
Intangible assets, Accumulated Amortization | 373.8 | 332.9 |
Intangible assets, Net Carrying Amount | 359.9 | 242.9 |
Indefinite Lived Intangible Assets Net | 60.7 | 28.1 |
Total intangible assets, Net Carrying Amount | 420.6 | 271 |
Intangible Assets, Gross (Excluding Goodwill) | 794.4 | 603.9 |
Customer Relationships [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 324.6 | 211.4 |
Intangible assets, Accumulated Amortization | 103 | 84.4 |
Intangible assets, Net Carrying Amount | 221.6 | 127 |
Technology-Based Intangible Assets [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 128.7 | 95.2 |
Intangible assets, Accumulated Amortization | 33.8 | 25.4 |
Intangible assets, Net Carrying Amount | 94.9 | 69.8 |
Unclassified Indefinite-lived Intangible Assets [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 10.3 | 11 |
Intangible assets, Accumulated Amortization | 6.2 | 7.5 |
Intangible assets, Net Carrying Amount | 4.1 | 3.5 |
Trademarks [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 8.6 | 6.5 |
Intangible assets, Accumulated Amortization | 4.3 | 3.8 |
Intangible assets, Net Carrying Amount | 4.3 | 2.7 |
Software and Software Development Costs [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Gross Carrying Amount | 261.5 | 251.7 |
Intangible assets, Accumulated Amortization | 226.5 | 211.8 |
Intangible assets, Net Carrying Amount | 35 | 39.9 |
Trade Names [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Accumulated Amortization | ||
Tradename | 52 | 19.4 |
FAA air agency certificates [Member] | ||
Intangible assets subject to amortization: | ||
Intangible assets, Accumulated Amortization | ||
Indefinite Lived FAA Air Agency Certificates | $ 8.7 | $ 8.7 |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($)segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Goodwill [Line Items] | ||||
Document Period End Date | Dec. 31, 2017 | |||
Finite-Lived Intangible Assets, Gross | $ 733.7 | $ 575.8 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | $ 213.6 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 346.8 | 72.6 | 213.3 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 27.9 | |||
Goodwill, Acquired During Period | $ 149.7 | 30.6 | ||
Document Fiscal Year Focus | 2,017 | |||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 373.8 | $ 332.9 | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | 20 years | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 16 years 9 months 18 days | 19 years 1 month 6 days | ||
Goodwill and Other Intangible Assets (Textual) [Abstract] | ||||
Amortization expense for intangible assets | $ 40 | $ 36.2 | $ 36.2 | |
Future Amortization Expense Year 2016 | 41.4 | |||
Future Amortization Expense Year 2017 | 35.5 | |||
Future Amortization Expense Year 2018 | 30.9 | |||
Future Amortization Expense Year 2019 | 27.2 | |||
Future Amortization Expense Year 2020 | 23.1 | |||
2016 Acquisitions [Member] | ||||
Goodwill [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 72.6 | |||
PT Tech & TCP Acquisitions [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 14.1 | |||
Lovejoy [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Purchase Accounting Adjustments | 1.7 | |||
Groeneveld [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 136.7 | |||
2017 Acquisitions [Member] | ||||
Goodwill [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 346.8 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 173.6 | |||
Intangible Assets, Weighted Average Life | 15 years | |||
EDT [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Purchase Accounting Adjustments | $ 0.6 | |||
Lovejoy & EDT [Member] | ||||
Goodwill [Line Items] | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 27.9 | |||
Mobile Industries [Member] | ||||
Goodwill [Line Items] | ||||
Number of Reporting Units | segment | 4 | |||
Goodwill, Acquired During Period | $ 150.8 | 0.7 | ||
Process Industries [Member] | ||||
Goodwill [Line Items] | ||||
Number of Reporting Units | segment | 2 | |||
Goodwill, Acquired During Period | $ (1.1) | $ 29.9 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 105.4 | $ 19.2 |
Line of Credit Facility, Interest Rate at Period End | 1.65% | |
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | |
Line of Credit Accounts Receivable Securitization [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Interest Rate at Period End | 2.15% | |
Variable Rate Lines of Credit [Member] | Foreign Subsidiary [Member] | ||
Short-term Debt [Line Items] | ||
Line of Credit Stated Variable Interest Rate Low Range | 0.32% | 0.50% |
Line of Credit Stated Variable Interest Rate, High Range | 2.22% | 0.50% |
Line of Credit [Member] | Line of Credit Accounts Receivable Securitization [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 62.9 | $ 0 |
Line of Credit [Member] | Foreign Subsidiary [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 42.5 | $ 19.2 |
Series A Medium Term Note [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Maturity Date | May 1, 2028 | |
Senior Unsecured Notes - 3.875% [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Maturity Date | Sep. 1, 2024 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | |
Senior Unsecured Notes - Variable Rate [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Maturity Date | Jun. 20, 2020 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.83% | 1.50% |
Euro Senior Unsecured Notes - 2.02% [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Maturity Date | Sep. 7, 2027 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | |
Euro Term Loan - Variable Rate [Member] | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Maturity Date | Sep. 18, 2020 | |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.13% | |
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 - Long-t
Financing Arrangements - Long-term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 33.5 | ||
Operating Leases, Rent Expense, Net | 35.2 | $ 30 | $ 33.5 |
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 2.7 | ||
Long-term Debt | 856.9 | 640 | |
Long-term Debt, Current Maturities | 2.7 | 5 | |
Long-term debt | |||
Long-term debt | $ 854.2 | 635 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | ||
Long-term Debt, Maturities, Repayments of Principal in Year Two | $ 0 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 171.7 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 1.7 | ||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 0 | ||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 680.8 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 25.9 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 20.7 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 12.1 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 6.8 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | 6.4 | ||
Series A Medium Term Note [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 154.5 | 159.5 | |
Senior Unsecured Notes - 3.875% [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 346.9 | 345.9 | |
Long-term debt | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | ||
Senior Unsecured Notes - Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 52 | $ 83.8 | |
Long-term debt | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.83% | 1.50% | |
Euro Senior Unsecured Notes - 2.02% [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 179.3 | $ 0 | |
Long-term debt | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | ||
Euro Term Loan - Variable Rate [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 119.7 | 0 | |
Other Long Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | 4.5 | 1.9 | |
Line of Credit [Member] | Line of Credit Accounts Receivable Securitization [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | $ 0 | $ 48.9 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) € in Millions, $ in Millions | Sep. 18, 2017 | Sep. 07, 2017 | Jul. 03, 2017 | Dec. 31, 2017USD ($) | Dec. 31, 2017EUR (€) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Line of Credit Facility [Line Items] | |||||||
Debt Disclosure [Text Block] | Note 10 - Financing Arrangements Short-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Variable-rate Accounts Receivable Facility with an interest rate of 2.15% at December 31, 2017 $ 62.9 $ — 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 2.22% at December 31, 2017 and 0.50% at December 31, 2016 42.5 19.2 Short-term debt $ 105.4 $ 19.2 The Company has a $100 million Accounts Receivable Facility that matures on November 30, 2018 . The Company is exploring opportunities to refinance the facility prior to its maturity. 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 that, 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 to certain borrowing base limitations. These limitations reduced the availability of the Accounts Receivable Facility to $82.3 million at December 31, 2017 . As of December 31, 2017 , there were outstanding borrowings of $62.9 million under the Accounts Receivable Facility, which reduced the availability under this facility to $19.4 million . The cost of this facility, which is the prevailing commercial paper rate plus program fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The outstanding balance under the Accounts Receivable Facility was classified as short term or long term in accordance with the terms of the agreement. In 2016, the classification of the outstanding balance reflected the Company's expectations relative to the minimum borrowing base. The yield rate was 2.15% , 1.65% and 1.05% , at December 31, 2017 , 2016 and 2015 , respectively. The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $288.9 million in the aggregate. Most of these lines of credit are uncommitted. At December 31, 2017 , the Company’s foreign subsidiaries had borrowings outstanding of $ 42.5 million and guarantees of $ 0.2 million , which reduced the aggregate availability under these facilities to $ 246.2 million . The weighted-average interest rate on these lines of credit during the year were 0.7% , 0.7% and 1.1% in 2017 , 2016 and 2015 , respectively. The weighted-average interest rate on lines of credit outstanding at December 31, 2017 and 2016 was 0.41% and 0.50% , respectively. The decrease in the weighted-average interest rate was primarily due to increased borrowings in the United States at a lower rate. Long-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Fixed-rate Medium-Term Notes, Series A, maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% $ 154.5 $ 159.5 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an interest rate of 3.875% 346.9 345.9 Variable-rate Senior Credit Facility with a weighted-average interest rate of 1.83% at December 31, 2017 and 1.50% at December 31, 2016 52.0 83.8 Variable-rate Accounts Receivable Facility with an interest rate of 1.65% at December 31, 2016 — 48.9 Fixed-rate Euro Senior Unsecured Notes, maturing on September 7, 2027, with an interest rate of 2.02% 179.3 — Variable-rate Euro Term Loan with an interest rate of 1.13% at December 30, 2017 119.7 — Other 4.5 1.9 Total debt $ 856.9 $ 640.0 Less current maturities 2.7 5.0 Long-term debt $ 854.2 $ 635.0 The Company has a $500 million Senior Credit Facility, which matures on June 19, 2020 . At December 31, 2017 , the Company had $ 52.0 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $448.0 million . The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At December 31, 2017 , the Company was in full compliance with both of these covenants. On September 7, 2017 , the Company issued the 2027 Notes in the aggregate principle amount of €150 million of fixed-rate 2.02% senior unsecured notes. On September 18, 2017 , the Company entered into the 2020 Term Loan that provided €100 million . Proceeds from the 2027 Notes and 2020 Term Loan were used to repay amounts drawn from the Senior Credit Facility to fund the Groeneveld acquisition, which closed on July 3, 2017 . Refer to Note 3 - Acquisitions and Divestitures for additional information. These debt instruments have two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. These covenants are similar to those in the Senior Credit Facility. At December 31, 2017 , the Company was in full compliance with both of these covenants. The maturities of long-term debt for the five years subsequent to December 31, 2017 are as follows: Year 2018 $ 2.7 2019 — 2020 171.7 2021 1.7 2022 — Thereafter 680.8 Interest paid was $31.5 million in 2017 , $30.1 million in 2016 and $32.1 million in 2015 . This differs from interest expense due to the timing of payments and interest capitalized of $0.7 million in 2017 , $1.1 million in 2016 and zero in 2015 . The Company and its subsidiaries lease a variety of real property and equipment. Rent expense under operating leases amounted to $35.2 million , $30.0 million and $33.5 million in 2017 , 2016 and 2015 , respectively. Future minimum lease payments for noncancelable operating leases at December 31, 2017 are as follows: Year 2018 $ 33.5 2019 25.9 2020 20.7 2021 12.1 2022 6.8 Thereafter 6.4 | Note 10 - Financing Arrangements Short-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Variable-rate Accounts Receivable Facility with an interest rate of 2.15% at December 31, 2017 $ 62.9 $ — 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 2.22% at December 31, 2017 and 0.50% at December 31, 2016 42.5 19.2 Short-term debt $ 105.4 $ 19.2 The Company has a $100 million Accounts Receivable Facility that matures on November 30, 2018 . The Company is exploring opportunities to refinance the facility prior to its maturity. 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 that, 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 to certain borrowing base limitations. These limitations reduced the availability of the Accounts Receivable Facility to $82.3 million at December 31, 2017 . As of December 31, 2017 , there were outstanding borrowings of $62.9 million under the Accounts Receivable Facility, which reduced the availability under this facility to $19.4 million . The cost of this facility, which is the prevailing commercial paper rate plus program fees, is considered a financing cost and is included in interest expense in the Consolidated Statements of Income. The outstanding balance under the Accounts Receivable Facility was classified as short term or long term in accordance with the terms of the agreement. In 2016, the classification of the outstanding balance reflected the Company's expectations relative to the minimum borrowing base. The yield rate was 2.15% , 1.65% and 1.05% , at December 31, 2017 , 2016 and 2015 , respectively. The lines of credit for certain of the Company’s foreign subsidiaries provide for short-term borrowings up to $288.9 million in the aggregate. Most of these lines of credit are uncommitted. At December 31, 2017 , the Company’s foreign subsidiaries had borrowings outstanding of $ 42.5 million and guarantees of $ 0.2 million , which reduced the aggregate availability under these facilities to $ 246.2 million . The weighted-average interest rate on these lines of credit during the year were 0.7% , 0.7% and 1.1% in 2017 , 2016 and 2015 , respectively. The weighted-average interest rate on lines of credit outstanding at December 31, 2017 and 2016 was 0.41% and 0.50% , respectively. The decrease in the weighted-average interest rate was primarily due to increased borrowings in the United States at a lower rate. Long-term debt as of December 31, 2017 and 2016 was as follows: 2017 2016 Fixed-rate Medium-Term Notes, Series A, maturing at various dates through May 2028, with interest rates ranging from 6.74% to 7.76% $ 154.5 $ 159.5 Fixed-rate Senior Unsecured Notes, maturing on September 1, 2024, with an interest rate of 3.875% 346.9 345.9 Variable-rate Senior Credit Facility with a weighted-average interest rate of 1.83% at December 31, 2017 and 1.50% at December 31, 2016 52.0 83.8 Variable-rate Accounts Receivable Facility with an interest rate of 1.65% at December 31, 2016 — 48.9 Fixed-rate Euro Senior Unsecured Notes, maturing on September 7, 2027, with an interest rate of 2.02% 179.3 — Variable-rate Euro Term Loan with an interest rate of 1.13% at December 30, 2017 119.7 — Other 4.5 1.9 Total debt $ 856.9 $ 640.0 Less current maturities 2.7 5.0 Long-term debt $ 854.2 $ 635.0 The Company has a $500 million Senior Credit Facility, which matures on June 19, 2020 . At December 31, 2017 , the Company had $ 52.0 million of outstanding borrowings under the Senior Credit Facility, which reduced the availability under this facility to $448.0 million . The Senior Credit Facility has two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. At December 31, 2017 , the Company was in full compliance with both of these covenants. On September 7, 2017 , the Company issued the 2027 Notes in the aggregate principle amount of €150 million of fixed-rate 2.02% senior unsecured notes. On September 18, 2017 , the Company entered into the 2020 Term Loan that provided €100 million . Proceeds from the 2027 Notes and 2020 Term Loan were used to repay amounts drawn from the Senior Credit Facility to fund the Groeneveld acquisition, which closed on July 3, 2017 . Refer to Note 3 - Acquisitions and Divestitures for additional information. These debt instruments have two financial covenants: a consolidated leverage ratio and a consolidated interest coverage ratio. These covenants are similar to those in the Senior Credit Facility. At December 31, 2017 , the Company was in full compliance with both of these covenants. The maturities of long-term debt for the five years subsequent to December 31, 2017 are as follows: Year 2018 $ 2.7 2019 — 2020 171.7 2021 1.7 2022 — Thereafter 680.8 Interest paid was $31.5 million in 2017 , $30.1 million in 2016 and $32.1 million in 2015 . This differs from interest expense due to the timing of payments and interest capitalized of $0.7 million in 2017 , $1.1 million in 2016 and zero in 2015 . The Company and its subsidiaries lease a variety of real property and equipment. Rent expense under operating leases amounted to $35.2 million , $30.0 million and $33.5 million in 2017 , 2016 and 2015 , respectively. Future minimum lease payments for noncancelable operating leases at December 31, 2017 are as follows: Year 2018 $ 33.5 2019 25.9 2020 20.7 2021 12.1 2022 6.8 Thereafter 6.4 | |||||
Financing Arrangements (Textual) [Abstract] | |||||||
Document Period End Date | Dec. 31, 2017 | Dec. 31, 2017 | |||||
Short-term Debt | $ 105.4 | $ 19.2 | |||||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.41% | 0.50% | |||||
Total Long-term debt | $ 856.9 | $ 640 | |||||
Maturities of long-term debt in 2016 | 2.7 | ||||||
Maturities of long-term debt in 2017 | 0 | ||||||
Maturities on long-term debt in 2018 | 171.7 | ||||||
Maturities of long-term debt in 2019 | 1.7 | ||||||
Maturities of long-term debt in 2020 | 0 | ||||||
Interest paid | 31.5 | 30.1 | $ 32.1 | ||||
Interest capitalized | 0.7 | 1.1 | 0 | ||||
Rent expense under operating leases | 35.2 | 30 | 33.5 | ||||
Operating Leases, Future Minimum Payments 2016 | 33.5 | ||||||
Operating Leases, Future Minimum Payments, Due in Two Years | 25.9 | ||||||
Operating Leases, Future Minimum Payments, Due in Three Years | 20.7 | ||||||
Operating Leases, Future Minimum Payments, Due in Four Years | 12.1 | ||||||
Operating Leases, Future Minimum Payments, Due in Five Years | 6.8 | ||||||
Future minimum lease payments for noncancelable operating leases thereafter | $ 6.4 | ||||||
Current Fiscal Year End Date | --12-31 | --12-31 | |||||
Proceeds from Issuance of Long-term Debt | $ 927.8 | 340.5 | $ 265.7 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.02% | ||||||
Senior Unsecured Notes - Variable Rate [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Expiration Date | Jun. 19, 2020 | Jun. 19, 2020 | |||||
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 | $ 448 | ||||||
Number of Financial Covenant under senior Credit Facility | 2 | ||||||
Total Long-term debt | $ 52 | $ 83.8 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.83% | 1.50% | |||||
Senior Unsecured Notes - 3.875% [Member] | |||||||
Financing Arrangements (Textual) [Abstract] | |||||||
Total Long-term debt | $ 346.9 | $ 345.9 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | ||||||
Foreign Subsidiary [Member] | |||||||
Financing Arrangements (Textual) [Abstract] | |||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 0.2 | ||||||
Debt Instrument, Interest Rate During Period | 0.70% | 0.70% | 0.70% | 1.10% | |||
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 | ||||||
Line of Credit Accounts Receivable Securitization [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Expiration Date | Nov. 30, 2018 | Nov. 30, 2018 | |||||
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 | $ 19.4 | ||||||
Debt instrument yield rate | 2.15% | 1.65% | 1.05% | ||||
Line of Credit 2020 [Member] | |||||||
Financing Arrangements (Textual) [Abstract] | |||||||
Debt Instrument, Issuance Date | Sep. 18, 2017 | ||||||
Proceeds from Issuance of Long-term Debt | € | € 100 | ||||||
Line of Credit [Member] | Foreign Subsidiary [Member] | |||||||
Financing Arrangements (Textual) [Abstract] | |||||||
Maximum borrowing capacity under line of credit | $ 288.9 | ||||||
Short-term Debt | 42.5 | $ 19.2 | |||||
Remaining Borrowing Capacity under Line of Credit Facility of Company's foreign subsidiaries | 246.2 | ||||||
Line of Credit [Member] | Line of Credit Accounts Receivable Securitization [Member] | |||||||
Financing Arrangements (Textual) [Abstract] | |||||||
Maximum borrowing capacity under line of credit | 82.3 | ||||||
Short-term Debt | 62.9 | 0 | |||||
Total Long-term debt | $ 0 | $ 48.9 | |||||
Groeneveld [Member] | |||||||
Financing Arrangements (Textual) [Abstract] | |||||||
Business Acquisition, Effective Date of Acquisition | Jul. 3, 2017 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product Warranty Accrual, Current | $ 5.8 | $ 6.9 | $ 5.4 |
Rollforward of Restructuring Accrual for Environmental Matters | 0.4 | 0.6 | |
Accrual for Environmental Loss Contingencies | 5 | 5.6 | |
Roll forward of Product warranty accruals | |||
Expense (Income) | 2.7 | 2.4 | |
Payments | $ (3.8) | $ (0.9) |
Impairment and Restructuring 76
Impairment and Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Impairment and Restructuring Charges for the Mobile Segment | |||||||||||
Impairment charges | $ 0.1 | $ 3.9 | $ 3.3 | ||||||||
Severance expense and related benefit costs | $ 3.3 | $ 7.7 | 3.5 | 15.3 | 7.7 | ||||||
Exit costs | 0.8 | 0.2 | 0.7 | 2.5 | 3.7 | ||||||
Total | $ 0.5 | $ 1.3 | $ 0.8 | $ 1.7 | $ 3 | $ 5.3 | $ 2.9 | $ 10.5 | 4.3 | 21.7 | 14.7 |
Mobile Industries [Member] | |||||||||||
Impairment and Restructuring Charges for the Mobile Segment | |||||||||||
Impairment charges | 0 | 3.9 | 0.1 | ||||||||
Severance expense and related benefit costs | 3.3 | 9.3 | 4.5 | ||||||||
Exit costs | 0.2 | 1.8 | 0.8 | ||||||||
Total | 3.5 | 15 | 5.4 | ||||||||
Process Industries [Member] | |||||||||||
Impairment and Restructuring Charges for the Mobile Segment | |||||||||||
Impairment charges | 0.1 | 0 | 3.2 | ||||||||
Severance expense and related benefit costs | 0.1 | 6 | 2.6 | ||||||||
Exit costs | 0 | 0.7 | 2.9 | ||||||||
Total | 0.2 | 6.7 | 8.7 | ||||||||
Corporate Segment [Member] | |||||||||||
Impairment and Restructuring Charges for the Mobile Segment | |||||||||||
Impairment charges | 0 | 0 | 0 | ||||||||
Severance expense and related benefit costs | 0.1 | 0 | 0.6 | ||||||||
Exit costs | 0.5 | 0 | 0 | ||||||||
Total | $ 0.6 | $ 0 | $ 0.6 |
Impairment and Restructuring 77
Impairment and Restructuring Charges - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Positions | Dec. 31, 2016USD ($)Positions | Dec. 31, 2015USD ($)Positions | |
Restructuring and Related Cost [Line Items] | |||||
Current Fiscal Year End Date | --12-31 | ||||
Severance expense and related benefit costs | $ 3.3 | $ 7.7 | $ 3.5 | $ 15.3 | $ 7.7 |
Impairment charges | 0.1 | 3.9 | 3.3 | ||
Exit costs | $ 0.8 | $ 0.2 | 0.7 | 2.5 | 3.7 |
Restructuring Reserve | $ 3.9 | 10.1 | $ 11.3 | ||
Document Fiscal Year Focus | 2,017 | ||||
One-time Termination Benefits [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Positions | 60 | 100 | |||
Severance expense and related benefit costs | $ 1.8 | $ 9.4 | $ 6.5 | ||
Employee Severance [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Positions | 175 | ||||
Mobile Industries [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | 3.3 | $ 9.3 | 4.5 | ||
Impairment charges | 0 | 3.9 | 0.1 | ||
Exit costs | 0.2 | 1.8 | 0.8 | ||
Mobile Industries [Member] | Facility Closing [Member] | Europe [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | 1.2 | ||||
Mobile Industries [Member] | One-time Termination Benefits [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | 3.8 | 3.4 | |||
Process Industries [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | 0.1 | 6 | 2.6 | ||
Impairment charges | 0.1 | 0 | 3.2 | ||
Exit costs | 0 | 0.7 | 2.9 | ||
Process Industries [Member] | South America [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Exit costs | 2.9 | ||||
Process Industries [Member] | UNITED STATES | |||||
Restructuring and Related Cost [Line Items] | |||||
Impairment charges | 3 | ||||
Process Industries [Member] | One-time Termination Benefits [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | 5.6 | 2.5 | |||
Corporate Segment [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | 0.1 | 0 | 0.6 | ||
Impairment charges | 0 | 0 | 0 | ||
Exit costs | 0.5 | 0 | 0 | ||
Corporate Segment [Member] | One-time Termination Benefits [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | $ 0.6 | ||||
Altavista Bearing Plant [Member] [Member] | Mobile Industries [Member] | Facility Closing [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Severance expense and related benefit costs | 1.9 | ||||
Restructuring and Related Cost, Incurred Cost | $ 11.5 | ||||
Impairment charges | $ 3.1 | ||||
Benoni [Member] | Mobile Industries [Member] | Facility Closing [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Positions | 85 | ||||
Severance expense and related benefit costs | $ 1.1 | ||||
Impairment charges | 0.5 | ||||
Pulaski [Member] | Mobile Industries [Member] | Facility Closing [Member] | |||||
Restructuring and Related Cost [Line Items] | |||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Positions | 120 | ||||
Severance expense and related benefit costs | $ 1.3 | $ 2.5 | |||
Restructuring and Related Cost, Incurred Cost | $ 9.8 |
Impairment and Restructuring 78
Impairment and Restructuring Charges - Consolidating Restructuring Accrual (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring and Related Activities [Abstract] | ||
Current Fiscal Year End Date | --12-31 | |
Roll Forward consolidated restructuring accrual | ||
Beginning Balance | $ 10.1 | $ 11.3 |
Expense | 4.2 | 17.8 |
Payments | (10.4) | (19) |
Ending Balance | $ 3.9 | $ 10.1 |
Stock Compensation Plans - Assu
Stock Compensation Plans - Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of significant stock options granted | |||
Weighted-average fair value per option | $ 10.60 | $ 6.49 | $ 11.67 |
Risk-free interest rate | 1.96% | 1.22% | 1.58% |
Dividend yield | 2.96% | 3.04% | 2.29% |
Expected stock volatility | 32.25% | 34.12% | 36.53% |
Expected life - years | 5 years | 5 years | 5 years |
Stock Compensation Plans - Opti
Stock Compensation Plans - Option Activity (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding - Number of Shares | shares | 3,783,497 |
Outstanding - beginning of year, Weighted Average Exercise Price | $ / shares | $ 34.41 |
Granted, Number of Shares | shares | 484,186 |
Granted, Weighted Average-exercise Price | $ / shares | $ 45.43 |
Exercised, Number of Shares | shares | (1,053,189) |
Exercised, Weighted-average Exercise Price | $ / shares | $ 32.62 |
Canceled or expired, Number of Shares | shares | (63,373) |
Canceled or expired, Weighted-average Exercise Price | $ / shares | $ 36.94 |
Outstanding - Number of Shares | shares | 3,151,121 |
Outstanding - end of year, Weighted Average Exercise Price | $ / shares | $ 36.65 |
Outstanding - end of year, Weighted-average Remaining Contractual Term | 6 years |
Outstanding - end of year, Aggregate Intrinsic Value | $ | $ 39.4 |
Option expected to vest, Number of Shares | shares | 3,151,121 |
Option expected to vest, Weighted-average Exercise Price | $ / shares | $ 36.65 |
Option expected to vest, Weighted-average Remaining Contractual Term | 6 years |
Option expected to vest, Aggregate Intrinsic Value | $ | $ 39.4 |
Options exercisable, Number of Shares | shares | 1,859,277 |
Options exercisable, Weighted-average Exercise Price | $ / shares | $ 36.05 |
Options exercisable, Weighted-average Remaining Contractual Term, Exercisable | 5 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ | $ 24.4 |
Stock Compensation Plans - Rest
Stock Compensation Plans - Restricted Share Activity (Details) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding - beginning of year, Number of Shares | 1,349,175 | ||
Outstanding - beginning of year, Weighted-average Grant Date Fair Value | $ 34.96 | ||
Granted, Number of shares | 407,436 | 613,165 | 485,975 |
Granted, Weighted-average Grant Date Fair Value | $ 45.48 | ||
Vested, Number of shares | (445,036) | ||
Vested, Weighted-average Grant Date Fair Value | $ 37.18 | ||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Option Forfeited in Period Weighted Average Grant Date Fair Value | $ 35.96 | ||
Outstanding - end of year, Number of Shares | 1,245,274 | 1,349,175 | |
Outstanding - end of year, Weighted-average Grant Date Fair Value | $ 37.56 | $ 34.96 |
Stock Compensation Plans - Narr
Stock Compensation Plans - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Current Fiscal Year End Date | --12-31 | ||||||||||
Document Period End Date | Dec. 31, 2017 | ||||||||||
Document Fiscal Year Focus | 2,017 | ||||||||||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||||||||||
Expected life - years | 5 years | 5 years | 5 years | ||||||||
Total intrinsic value of options exercised | $ 14.7 | $ 1.7 | $ 5.6 | ||||||||
Unrecognized Compensation expense related to stock option awards, restricted shares and deferred shares | $ 29.4 | 29.4 | |||||||||
Recognized Stock-based compensation expense before tax | 5.2 | 5.9 | 6.6 | ||||||||
Amount accrued for shares settling in cash | $ 0.7 | $ 1.2 | $ 0.7 | 1.2 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||
Share Based Compensation Plans (Textual) [Abstract] | |||||||||||
Recognized Stock-based compensation expense after tax | $ 3.2 | 3.7 | 4.1 | ||||||||
Net cash proceeds from the exercise of stock options | 32.9 | 4.3 | 4.1 | ||||||||
Income tax benefits | $ 1.9 | $ (0.3) | $ 1.3 | ||||||||
Shares distributed | 445,036 | 188,383 | 103,953 | ||||||||
Number of shares available for future grants for all plans | 4,920,863 | 4,920,863 | |||||||||
Unrecognized compensation expense is expected to be recognized over a total weighted average period | 2 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 16.5 | $ 7.8 | $ 3.8 | ||||||||
Earnings Per Share, Diluted | $ 0.37 | $ 0.68 | $ 1.04 | $ 0.48 | $ (0.09) | $ 0.43 | $ 0.61 | $ 0.82 | $ 2.58 | $ 1.78 | $ 2.21 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 10.60 | $ 6.49 | $ 11.67 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.96% | 1.22% | 1.58% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 2.96% | 3.04% | 2.29% | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 32.25% | 34.12% | 36.53% | ||||||||
Employee Stock Option [Member] | |||||||||||
Share Based Compensation Plans (Textual) [Abstract] | |||||||||||
Earnings Per Share, Diluted | $ 0.04 | $ 0.05 | $ 0.05 | ||||||||
Employee Stock Option [Member] | |||||||||||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||||||||||
Expected life - years | 10 years | ||||||||||
Restricted Stock [Member] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,245,274 | 1,349,175 | 1,245,274 | 1,349,175 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 37.56 | $ 34.96 | $ 37.56 | $ 34.96 | |||||||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||||||||||
Canceled or expired, Number of Shares | (66,301) | ||||||||||
Shares awarded | 407,436 | 613,165 | 485,975 | ||||||||
Recognized Stock-based compensation expense before tax | $ 19.5 | $ 8.2 | $ 11.8 | ||||||||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Option Forfeited in Period Weighted Average Grant Date Fair Value | $ 35.96 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 45.48 | ||||||||||
Share Based Compensation Plans (Textual) [Abstract] | |||||||||||
Vested, Number of shares | (445,036) | ||||||||||
Vested, Weighted-average Grant Date Fair Value | $ 37.18 | ||||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||||||||||
Shares awarded | 191,256 | ||||||||||
Vesting period | 3 years | ||||||||||
Shares expected to settle in cash | 4,200 | 4,200 | |||||||||
Shares expected to settle in shares | 187,056 | 187,056 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | ||||||||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||||||||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||||||||||
Vesting period | 5 years | ||||||||||
Performance Shares [Member] | |||||||||||
Share Based Compensation Plans (Additional Textual) [Abstract] | |||||||||||
Shares awarded | 226,640 | ||||||||||
Shares expected to settle in cash | 6,260 | 6,260 | |||||||||
Shares expected to settle in shares | 220,380 | 220,380 |
Retirement Benefit Plans - Comp
Retirement Benefit Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Payment for Pension Benefits | $ 11.5 | $ 15 | $ 10.8 |
Pension Plan [Member] | |||
Components of net periodic benefit cost: | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | (23.2) | (60.9) | (21.1) |
Foreign Plan [Member] | Pension Plan [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 1.6 | 1.4 | 2.2 |
Interest cost | 7.5 | 10.5 | 12.3 |
Expected return on plan assets | (11.1) | (10.7) | (18.2) |
Amortization of prior service cost | 0 | 0.1 | 0.1 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 0.1 | 19.4 | (17.7) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | (0.1) | 0.6 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 | 0.6 |
Net periodic benefit cost | (1.9) | 20.6 | (20.1) |
Domestic Plan [Member] | Pension Plan [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 12.2 | 13.1 | 15.4 |
Interest cost | 24.6 | 26.6 | 45.6 |
Expected return on plan assets | (28) | (30.1) | (66.9) |
Amortization of prior service cost | 1.4 | 1.7 | 2.8 |
Defined Benefit Plan, Plan Assets, Payment for Settlement | 23.1 | 41.5 | (3.4) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 116.1 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | (1.1) | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 | 0 |
Net periodic benefit cost | $ 32.2 | $ 52.8 | $ 109.6 |
Retirement Benefit Plans - Assu
Retirement Benefit Plans - Assumptions (Details) - Pension Plan [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 6.00% | ||
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 5.92% | ||
Assumptions: | |||
Discount rate | 4.34% | ||
Domestic Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 5750000.00% | 5.75% | |
Assumptions: | |||
Discount rate | 4.34% | 4.50% | 3.98% |
Future compensation assumption | 2.50% | 3.00% | 2.00% |
Domestic Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 6500000.00% | 6.75% | |
Assumptions: | |||
Discount rate | 4.50% | 4.70% | 4.64% |
Future compensation assumption | 3.00% | 3.00% | 3.00% |
Foreign Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 0.75% | 0.82% | 2.25% |
Assumptions: | |||
Discount rate | 1.25% | 2.00% | 1.50% |
Future compensation assumption | 2.00% | 2.20% | 2.20% |
Foreign Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected long-term return on plan assets | 9.25% | 9.25% | 9.25% |
Assumptions: | |||
Discount rate | 9.00% | 8.50% | 8.75% |
Future compensation assumption | 8.00% | 8.00% | 8.00% |
Retirement Benefit Plans - Chan
Retirement Benefit Plans - Change in Benefit Obligation (Details) - Pension Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | |||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 11.5 | $ 15 | |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 8.1 | 7.4 | $ 9.1 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 2.8 | 0 | |
Defined Benefit Plan, Fair Value of Plan Assets | 531.9 | 529.6 | 553.7 |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 612.4 | 589.9 | |
Service cost | 12.2 | 13.1 | 15.4 |
Interest cost | 24.6 | 26.6 | 45.6 |
Amendments | 2.8 | 0 | |
Actuarial losses | 60.5 | 45.3 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (1.8) | 0 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 67.7 | 62.5 | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 | 0 |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | (1,100) | ||
Benefit obligation at end of year | 643 | 612.4 | 589.9 |
Actual return on plan assets | 65.5 | 33.8 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 4.5 | 4.6 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 0 | 0 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (111.1) | (82.8) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Reclassification Adjustment, before Tax | (1.4) | (1.7) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | (0.7) | 0 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | (116.1) |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 0.5 | 0.5 | 0.5 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | 0 | 0 | |
Defined Benefit Plan, Fair Value of Plan Assets | 292.4 | 268.7 | 304.6 |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 314.2 | 338.1 | |
Service cost | 1.6 | 1.4 | 2.2 |
Interest cost | 7.5 | 10.5 | 12.3 |
Amendments | 0 | 0 | |
Actuarial losses | 0.9 | 53.4 | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | 32.2 | (45) | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | (0.1) | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 21.2 | 44.1 | |
Defined Benefit Plan, Benefit Obligation, Special and Contractual Termination Benefits | 0 | 0 | 0.6 |
Benefit obligation at end of year | 335.2 | 314.2 | 338.1 |
Actual return on plan assets | 12 | 43.2 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 7 | 10.4 | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | 25.9 | (45.4) | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (42.8) | (45.5) | |
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), after Reclassification Adjustment, before Tax | 0 | (0.1) | |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 0 | 0.1 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 0 | $ 0 |
Retirement Benefit Plans - Ch86
Retirement Benefit Plans - Change in Plan Assets (Details) - Pension Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | ||
Return on plan assets | $ 11.5 | $ 15 |
Foreign Plan [Member] | ||
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 268.7 | 304.6 |
Actual return on plan assets | 12 | 43.2 |
Return on plan assets | 7 | 10.4 |
International plan exchange rate change | 25.9 | (45.4) |
Benefits paid | (21.2) | (44.1) |
Fair value of plan assets at end of year | 292.4 | 268.7 |
Funded status at end of year | $ (42.8) | $ (45.5) |
Retirement Benefit Plans - Bala
Retirement Benefit Plans - Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Amounts recognized on the Consolidated Balance Sheets: | ||
Non-current assets | $ 19.7 | $ 32.1 |
Pension Plan [Member] | ||
Amounts recognized on the Consolidated Balance Sheets: | ||
Current liabilities | 6.4 | 5.7 |
Domestic Plan [Member] | Pension Plan [Member] | ||
Amounts recognized on the Consolidated Balance Sheets: | ||
Non-current assets | 6.7 | 26.4 |
Current liabilities | 4.8 | 4.3 |
Non-current liabilities | (113) | (104.9) |
Total | (111.1) | (82.8) |
Foreign Plan [Member] | Pension Plan [Member] | ||
Amounts recognized on the Consolidated Balance Sheets: | ||
Non-current assets | 13 | 5.7 |
Current liabilities | 1.5 | 1.4 |
Non-current liabilities | (54.3) | (49.8) |
Total | $ (42.8) | $ (45.5) |
Retirement Benefit Plans - Accu
Retirement Benefit Plans - Accumulated Other Comprehensive Loss (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Domestic Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net prior service cost | $ 8.1 | $ 7.4 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 8.1 | 7.4 | $ 9.1 |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net prior service cost | 0.5 | 0.5 | |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | $ 0.5 | $ 0.5 | $ 0.5 |
Retirement Benefit Plans - Ch89
Retirement Benefit Plans - Changes in Plan Assets and Benefit Obligations in AOCL (Details) - Foreign Plan [Member] - Pension Plan [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in prior service cost recognized in accumulated other comprehensive loss: | |||
Accumulated other comprehensive income (loss) at beginning of year | $ 0.5 | $ 0.5 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | $ 0 |
Recognized prior service credit (cost) | 0 | (0.1) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Curtailment | 0 | 0.1 | (0.6) |
Total recognized in accumulated other comprehensive income at December 31 | $ 0.5 | $ 0.5 | $ 0.5 |
Retirement Benefit Plans - Bene
Retirement Benefit Plans - Benefit Obligation Assumptions (Details) - Pension Plan [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Assumptions | ||
Retirement Benefit Plans | The Company and its subsidiaries sponsor a number of defined benefit pension plans, which cover eligible employees, including certain employees in foreign countries. These plans generally are noncontributory. Pension benefits earned generally are based on years of service and compensation during active employment. The cash contributions for the Company’s defined benefit pension plans were $11.5 million , $15.0 million and $10.8 million in 2017 , 2016 and 2015 , respectively. The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: U.S. Plans International Plans 2017 2016 2015 2017 2016 2015 Components of net periodic benefit cost: Service cost $ 12.2 $ 13.1 $ 15.4 $ 1.6 $ 1.4 $ 2.2 Interest cost 24.6 26.6 45.6 7.5 10.5 12.3 Expected return on plan assets (28.0 ) (30.1 ) (66.9 ) (11.1 ) (10.7 ) (18.2 ) Amortization of prior service cost 1.4 1.7 2.8 — 0.1 0.1 Recognition of net actuarial 23.1 41.5 (3.4 ) 0.1 19.4 (17.7 ) Curtailment (1.1 ) — — — (0.1 ) 0.6 Settlement — — 116.1 — — — Special termination benefits — — — — — 0.6 Net periodic benefit cost $ 32.2 $ 52.8 $ 109.6 $ (1.9 ) $ 20.6 $ (20.1 ) Assumptions 2017 2016 2015 U.S. Plans: Discount rate 4.34% to 4.50% 4.50% to 4.70% 3.98% to 4.64% Future compensation assumption 2.50% to 3.00% 2.50% to 3.00% 2.00% to 3.00% Expected long-term return on plan assets 5.75% to 6.50% 5.75% to 6.75% 6.00 % International Plans: Discount rate 1.25% to 9.00% 2.00% to 8.50% 1.50% to 8.75% Future compensation assumption 2.00% to 8.00% 2.20% to 8.00% 2.20% to 8.00% Expected long-term return on plan assets 0.75% to 9.25% 0.82% to 9.25% 2.25% to 9.25% The Company recognized actuarial losses of $23.2 million during 2017 primarily due to the impact of a net reduction in the discount rate used to measure its defined benefit pension obligations of $52.9 million and the impact of experience losses and other changes in valuation assumptions of $8.7 million , partially offset by higher than expected returns on plan assets of $38.4 million . The impact of the net reduction in the discount rate used to measure the Company's defined benefit obligation was primarily driven by a 54 basis point reduction in the discount rate used to measure its U.S. defined benefit plan obligations. The Company recognized actuarial losses of $60.9 million during 2016 primarily due to the impact of a net reduction in the discount rate used to measure its defined benefit pension obligations of $86.9 million and the impact of experience losses and other changes in valuation assumptions of $10.2 million , partially offset by higher than expected returns on plan assets of $36.2 million . The impact of the net reduction in the discount rate used to measure the Company's defined benefit obligation was primarily driven by a 125 basis point reduction in the discount rate used to measure its defined benefit plan obligations in the United Kingdom and a 36 basis point reduction in the discount rate used to measure its defined benefit plan obligations in the United States. The Company recognized actuarial gains of $21.1 million during 2015 primarily due to the impact of a net increase in the discount rate used to measure its defined benefit pension obligations of $56.1 million and the impact of experience gains and other changes in valuation assumptions of $22.6 million , partially offset by lower than expected returns on plan assets of $57.6 million . The impact of the net increase in the discount rate used to measure the Company's defined benefit obligation was primarily driven by a 50 basis point increase in the discount rate used to measure its U.S. defined benefit plan obligations. In 2015 , the Company entered into two agreements pursuant to which two of the Company's U.S. defined benefit pension plans purchased group annuity contracts from Prudential. The two group annuity contracts require Prudential to pay and administer future pension benefits for approximately 8,400 U.S. Timken retirees in the aggregate. The Company transferred a total of approximately $1.1 billion of its pension obligations and a total of approximately $1.2 billion of pension assets to Prudential in these transactions. The Company also entered into an agreement pursuant to which one of the Company's Canadian defined benefit pension plans purchased a group annuity contract from Canada Life. The group annuity contract requires Canada Life to pay and administer future pension benefits for approximately 40 Canadian retirees. As a result of the group annuity contracts, as well as pension settlement and curtailment charges related to the Company's Canadian pension plans, the Company incurred total pension settlement and curtailment charges of $119.9 million , including professional fees of $2.6 million , in 2015. For expense purposes in 2017 , the Company applied a weighted-average discount rate of 4.34% to its U.S. defined benefit pension plans. For expense purposes in 2018, the Company will apply a weighted-average discount rate of 3.80% to its U.S. defined benefit pension plans. For expense purposes in 2017 , the Company applied a weighted-average expected rate of return of 5.92% for the Company’s U.S. pension plan assets. For expense purposes in 2018, the Company will apply a weighted-average expected rate of return on plan assets of 5.78% . The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2017 and 2016 : U.S. Plans International Plans 2017 2016 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 612.4 $ 589.9 $ 314.2 $ 338.1 Service cost 12.2 13.1 1.6 1.4 Interest cost 24.6 26.6 7.5 10.5 Plan amendments 2.8 — — — Actuarial losses 60.5 45.3 0.9 53.4 International plan exchange rate change — — 32.2 (45.0 ) Curtailment (1.8 ) — — (0.1 ) Benefits paid (67.7 ) (62.5 ) (21.2 ) (44.1 ) Benefit obligation at end of year $ 643.0 $ 612.4 $ 335.2 $ 314.2 Change in plan assets: Fair value of plan assets at beginning of year $ 529.6 $ 553.7 $ 268.7 $ 304.6 Actual return on plan assets 65.5 33.8 12.0 43.2 Company contributions / payments 4.5 4.6 7.0 10.4 International plan exchange rate change — — 25.9 (45.4 ) Benefits paid (67.7 ) (62.5 ) (21.2 ) (44.1 ) Fair value of plan assets at end of year 531.9 529.6 292.4 268.7 Funded status at end of year $ (111.1 ) $ (82.8 ) $ (42.8 ) $ (45.5 ) U.S. Plans International Plans 2017 2016 2017 2016 Amounts recognized on the Consolidated Balance Sheets: Non-current assets $ 6.7 $ 26.4 $ 13.0 $ 5.7 Current liabilities (4.8 ) (4.3 ) (1.5 ) (1.4 ) Non-current liabilities (113.0 ) (104.9 ) (54.3 ) (49.8 ) $ (111.1 ) $ (82.8 ) $ (42.8 ) $ (45.5 ) Amounts recognized in accumulated other comprehensive loss: Net prior service cost $ 8.1 $ 7.4 $ 0.5 $ 0.5 Accumulated other comprehensive loss $ 8.1 $ 7.4 $ 0.5 $ 0.5 Changes in prior service cost recognized in accumulated other comprehensive loss: Accumulated other comprehensive loss at beginning of year $ 7.4 $ 9.1 $ 0.5 $ 0.5 Prior service cost 2.8 — — — Recognized prior service cost (1.4 ) (1.7 ) — (0.1 ) (Loss) gain recognized due to curtailment (0.7 ) — — 0.1 Total recognized in accumulated other comprehensive loss at December 31 $ 8.1 $ 7.4 $ 0.5 $ 0.5 The presentation in the above tables for amounts recognized in accumulated other comprehensive loss on the Consolidated Balance Sheets is before the effect of income taxes. The following table summarizes assumptions used to measure the benefit obligation for the defined benefit pension plans at December 31: Assumptions 2017 2016 U.S. Plans: Discount rate 3.75% to 3.80% 4.34% to 4.50% Future compensation assumption 2.50 % 2.00% to 3.00% International Plans: Discount rate 1.25% to 9.00% 1.25% to 9.00% Future compensation assumption 2.00% to 8.00% 2.00% to 8.00% Defined benefit pension plans in the United States represent 66% of the benefit obligation and 65% of the fair value of plan assets as of December 31, 2017 . Certain of the Company’s defined benefit pension plans were overfunded as of December 31, 2017 . As a result, $19.7 million and $32.1 million at December 31, 2017 and 2016 , respectively, are included in non-current pension assets on the Consolidated Balance Sheets. The current portion of accrued pension cost, which was included in salaries, wages and benefits on the Consolidated Balance Sheets, was $6.4 million and $5.7 million at December 31, 2017 and 2016 , respectively. In 2017 , the current portion of accrued pension cost relates to unfunded plans and represents the actuarial present value of expected payments related to the plans to be made over the next 12 months. The accumulated benefit obligation at December 31, 2017 exceeded the market value of plan assets for several of the Company’s pension plans. For these plans, the projected benefit obligation was $208.8 million , the accumulated benefit obligation was $196.1 million and the fair value of plan assets was $35.6 million at December 31, 2017 . The total pension accumulated benefit obligation for all plans was $941.5 million and $888.0 million at December 31, 2017 and 2016 , respectively. Investment performance increased the value of the Company’s pension assets by 10.6% in 2017 . As of December 31, 2017 and 2016 , the Company’s defined benefit pension plans did not directly hold any of the Company’s common shares. The estimated prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $1.7 million . Plan Assets: The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2017 and 2016 , was as follows: Current Target Allocation Percentage of Pension Plan Assets at December 31, Asset Category 2017 2016 Equity securities 10% to 16% 14% 12% Fixed income securities 70% to 90% 80% 78% Other investments 4% to 10% 6% 10% Total 100% 100% The Company recognizes its overall responsibility to ensure that the assets of its various defined benefit pension plans are managed effectively and prudently and in compliance with its policy guidelines and all applicable laws. Preservation of capital is important; however, the Company also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the pension funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 - Unobservable inputs for the asset or liability. The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2017 : U.S. Pension Plans International Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 27.2 $ — $ — $ 27.2 $ 4.8 $ — $ — $ 4.8 Government and agency securities 15.5 3.4 — 18.9 — — — — Corporate bonds - investment grade — 105.1 — 105.1 — — — — Mutual funds - fixed income 44.9 — — 44.9 — — — — Mutual funds - international equity 17.5 — — 17.5 — — — — $ 105.1 $ 108.5 $ — $ 213.6 $ 4.8 $ — $ — $ 4.8 Investments measured at net asset value: Cash and cash equivalents $ 0.2 $ 0.1 Corporate bonds - investment grade — 5.3 Equity securities - international companies — 1.0 Common collective funds - domestic equities 37.0 — Common collective funds - international equities 11.5 25.3 Common collective funds - fixed income 220.9 86.2 Limited partnerships 31.8 — Real estate partnerships 16.9 — Other assets — 169.7 Total Assets $ 531.9 $ 292.4 The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2016 : U.S. Pension Plans International Pension Plans Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash and cash equivalents $ 34.3 $ — $ — $ 34.3 $ 0.8 $ — $ — $ 0.8 Government and agency securities 44.0 2.6 — 46.6 — — — — Corporate bonds - investment grade — 65.7 — 65.7 — — — — Equity securities - U.S. companies 10.5 — — 10.5 — — — — Equity securities - international companies 6.2 — — 6.2 — — — — Mutual funds 41.5 — — 41.5 — — — — $ 136.5 $ 68.3 $ — $ 204.8 $ 0.8 $ — $ — $ 0.8 Investments measured at net asset value: Cash and cash equivalents $ — $ 3.4 Corporate bonds - investment grade — 2.7 Equity securities - international companies — 1.5 Common collective funds - domestic equities 14.0 — Common collective funds - international equities 14.1 33.4 Common collective funds - fixed income 217.1 74.6 Limited partnerships 39.6 — Real estate partnerships 22.1 — Other assets — 152.3 Risk parity 17.9 — Total Assets $ 529.6 $ 268.7 Cash and cash equivalents are valued at redemption value. Government and agency securities are valued at the closing price reported in the active market in which the individual securities are traded. Certain corporate bonds are valued at the closing price reported in the active market in which the bond is traded. Equity securities (both common and preferred stock) are valued at the closing price reported in the active market in which the individual security is traded. Common collective funds are valued based on a net asset value per share. Asset-backed securities are valued based on quoted prices for similar assets in active markets. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security. Limited partnerships include investments in funds that invest primarily in private equity, venture capital and distressed debt. Limited partnerships are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value, per the underlying investment fund, which is based upon the general partner's own assumptions about the assumptions a market participant would use in pricing the assets and liabilities of the partnership. Real estate investments include funds that invest in companies that primarily invest in commercial and residential properties, commercial mortgage-backed securities, debt and equity securities of real estate operating companies, and real estate investment trusts. Other real estate investments are valued based on the ownership interest in the net asset value of the investment, which is used as a practical expedient to fair value per the underlying investment fund, which is based on appraised values and current transaction prices. Risk parity investments include funds that invest in diversified global asset classes (equities, bonds, inflation-linked bonds, and commodities) with leverage to balance risk and achieve consistent returns with lower volatility. Risk parity investments are valued based on the closing prices of the underlying securities in the active markets in which they are traded. Cash Flows: Employer Contributions to Defined Benefit Plans 2016 $ 15.0 2017 11.5 2018 (planned) 10.4 Future benefit payments, including lump sum distributions, are expected to be as follows: Benefit Payments 2018 $ 67.4 2019 94.0 2020 64.6 2021 72.2 2022 65.2 2023-2027 300.4 Employee Savings Plans: The Company sponsors defined contribution retirement and savings plans covering substantially all employees in the United States and employees at certain non-U.S. locations. The Company made contributions to its defined contribution plans of $21.8 million in 2017 , $20.2 million in 2016 and $22.4 million in 2015 . Participants in certain of these plans may elect to hold a portion of their investments in the Company's common shares. At December 31, 2017 , the plans held 2,665,260 of the Company’s common shares with a fair value of $131.0 million . The Company paid dividends totaling $3.0 million in 2017 , $3.7 million in 2016 and $4.2 million in 2015 | |
Domestic Plan [Member] | ||
Assumptions | ||
Future compensation assumption | 2.50% | |
Domestic Plan [Member] | Minimum [Member] | ||
Assumptions | ||
Discount rate | 3.75% | 4.34% |
Future compensation assumption | 2.00% | |
Domestic Plan [Member] | Maximum [Member] | ||
Assumptions | ||
Discount rate | 3.80% | 4.50% |
Future compensation assumption | 3.00% | |
Foreign Plan [Member] | Minimum [Member] | ||
Assumptions | ||
Discount rate | 1.25% | 1.25% |
Future compensation assumption | 2.00% | 2.00% |
Foreign Plan [Member] | Maximum [Member] | ||
Assumptions | ||
Discount rate | 9.00% | 9.00% |
Future compensation assumption | 8.00% | 8.00% |
Retirement Benefit Plans - Targ
Retirement Benefit Plans - Target Allocation (Details) - Pension Plan [Member] | Dec. 31, 2017 | Dec. 31, 2016 |
Target assets allocation and actual asset allocations for US pension plan assets | ||
Actual Asset Allocation | 100.00% | 100.00% |
Equity securities [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Actual Asset Allocation | 14.00% | 12.00% |
Debt Securities [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Actual Asset Allocation | 80.00% | 78.00% |
Other Investments [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Actual Asset Allocation | 6.00% | 10.00% |
Minimum [Member] | Equity securities [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 10.00% | |
Minimum [Member] | Debt Securities [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 70.00% | |
Minimum [Member] | Other Investments [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 4.00% | |
Maximum [Member] | Equity securities [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 16.00% | |
Maximum [Member] | Debt Securities [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 90.00% | |
Maximum [Member] | Other Investments [Member] | ||
Target assets allocation and actual asset allocations for US pension plan assets | ||
Current Target Allocation | 10.00% |
Retirement Benefit Plans - Asse
Retirement Benefit Plans - Assets Measured at Fair Value (Details) - Pension Plan [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign Plan [Member] | |||
Assets: | |||
Total Assets | $ 292.4 | $ 268.7 | $ 304.6 |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 292.4 | 268.7 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 4.8 | 0.8 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 1 | 1.5 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Common Collective funds - domestic equities [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - international equities [Member] | |||
Assets: | |||
Total Assets | 25.3 | 33.4 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Income Funds [Member] | |||
Assets: | |||
Total Assets | 86.2 | 74.6 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Limited Partnership [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Real Estate [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Other Assets [Member] | |||
Assets: | |||
Total Assets | 169.7 | 152.3 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents at Net Asset Value [Member] | |||
Assets: | |||
Total Assets | 0.1 | 3.4 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds at Net Asset Value [Member] | |||
Assets: | |||
Total Assets | 5.3 | 2.7 | |
Foreign Plan [Member] | Fair Value, Measurements, Recurring [Member] | Risk Parity [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 4.8 | 0.8 | |
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 4.8 | 0.8 | |
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Foreign Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Foreign Plan [Member] | Assets [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 4.8 | 0.8 | |
Domestic Plan [Member] | |||
Assets: | |||
Total Assets | 531.9 | 529.6 | $ 553.7 |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 531.9 | 529.6 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 27.2 | 34.3 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 18.9 | 46.6 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 105.1 | 65.7 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 10.5 | ||
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 6.2 | ||
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Common Collective funds - domestic equities [Member] | |||
Assets: | |||
Total Assets | 37 | 14 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Common collective funds - international equities [Member] | |||
Assets: | |||
Total Assets | 11.5 | 14.1 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Fixed Income Funds [Member] | |||
Assets: | |||
Total Assets | 220.9 | 217.1 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Limited Partnership [Member] | |||
Assets: | |||
Total Assets | 31.8 | 39.6 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Real Estate [Member] | |||
Assets: | |||
Total Assets | 16.9 | 22.1 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Other Assets [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 44.9 | 41.5 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 17.5 | ||
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents at Net Asset Value [Member] | |||
Assets: | |||
Total Assets | 0.2 | 0 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Corporate Bonds at Net Asset Value [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Fair Value, Measurements, Recurring [Member] | Risk Parity [Member] | |||
Assets: | |||
Total Assets | 17.9 | ||
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 105.1 | 136.5 | |
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 27.2 | 34.3 | |
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 15.5 | 44 | |
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 10.5 | ||
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 6.2 | ||
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 44.9 | 41.5 | |
Domestic Plan [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 17.5 | ||
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 108.5 | 68.3 | |
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 3.4 | 2.6 | |
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 105.1 | 65.7 | |
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Government and agency securities [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate bonds [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Equity securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | International Equity Securities [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | 0 | |
Domestic Plan [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mutual Fund [Member] | |||
Assets: | |||
Total Assets | 0 | ||
Domestic Plan [Member] | Assets [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | $ 213.6 | $ 204.8 |
Retirement Benefit Plans - Empl
Retirement Benefit Plans - Employer Contributions to Defined Benefit Plans (Details) - Pension Plan [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Employer Contributions [Abstract] | ||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 11.5 | $ 15 |
2018 (planned) | $ 10.4 |
Retirement Benefit Plans - Futu
Retirement Benefit Plans - Future Benefit Payments (Details) - Pension Plan [Member] $ in Millions | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,018 | $ 67.4 |
Future pension benefit payments | |
2,019 | 94 |
2,020 | 64.6 |
2,021 | 72.2 |
2,022 | 65.2 |
2023-2027 | $ 300.4 |
Retirement Benefit Plans - Narr
Retirement Benefit Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of U.S. Timken retirees | 8,400 | ||
Payment for Pension Benefits | $ 11,500,000 | $ 15,000,000 | $ 10,800,000 |
Retirement Benefit Plans (Textual) [Abstract] | |||
Return on plan assets | $ 21,800,000 | 20,200,000 | $ 22,400,000 |
Company common stock | 2,665,260 | ||
Fair value of company common stock | $ 131,000,000 | ||
Canadian Retirees | 40 | ||
Pension Settlement Charges | 0 | 1,600,000 | $ 119,900,000 |
Professional Fees | 2,600,000 | ||
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 23,200,000 | 60,900,000 | $ 21,100,000 |
Retirement Benefit Plans (Textual) [Abstract] | |||
Expected long-term return on plan assets | 6.00% | ||
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Benefit Obligation | 19,700,000 | ||
Defined benefit plans are included in the other non-current assets on the Consolidated Balance Sheets | 32,100,000 | ||
Current liabilities | 6,400,000 | 5,700,000 | |
Projected benefit obligation | 208,800,000 | ||
Accumulated benefit obligations | 196,100,000 | ||
Fair value of plan assets | 35,600,000 | ||
Pension accumulated benefit obligation | $ 941,500,000 | 888,000,000 | |
Percentage Increase in Value of Pension Assets Due to Investment Performance | 10.60% | ||
Expected amortization of prior service cost | $ 1,700,000 | ||
Employee Stock [Member] | |||
Retirement Benefit Plans (Textual) [Abstract] | |||
Dividends | 3,000,000 | 3,700,000 | $ 4,200,000 |
Domestic Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ (23,100,000) | (41,500,000) | 3,400,000 |
Percentage of Defined Benefit Plan Obligation in US | 66.00% | ||
Defined Benefit Plan, Benefit Obligation | $ 643,000,000 | 612,400,000 | 589,900,000 |
Retirement Benefit Plans (Textual) [Abstract] | |||
Discount rate to defined pension plans | 4.34% | ||
Expected long-term return on plan assets | 5.92% | ||
Defined benefit pension plan percentage of fair value of plan assets | 65.00% | ||
Current liabilities | $ 4,800,000 | $ 4,300,000 | |
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 1,100,000,000 | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | $ 1,200,000,000 | ||
Domestic Plan [Member] | Scenario, Forecast [Member] | Pension Plan [Member] | |||
Retirement Benefit Plans (Textual) [Abstract] | |||
Discount rate to defined pension plans | 3.80% | ||
Expected long-term return on plan assets | 5.78% | ||
Domestic Plan [Member] | Maximum [Member] | Pension Plan [Member] | |||
Retirement Benefit Plans (Textual) [Abstract] | |||
Discount rate to defined pension plans | 4.50% | 4.70% | 4.64% |
Expected long-term return on plan assets | 6500000.00% | 6.75% | |
Domestic Plan [Member] | Minimum [Member] | Pension Plan [Member] | |||
Retirement Benefit Plans (Textual) [Abstract] | |||
Discount rate to defined pension plans | 4.34% | 4.50% | 3.98% |
Expected long-term return on plan assets | 5750000.00% | 5.75% | |
Discount Rate In Dollars [Domain] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 52,900,000 | $ 86,900,000 | $ 56,100,000 |
Other Valuation Assumptions [Domain] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 8,700,000 | 10,200,000 | 22,600,000 |
Return on Plan Assets vs. Expectation [Domain] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 38,400,000 | 36,200,000 | 57,600,000 |
Discount Rate In Basis Points [Domain] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 54 | $ 50 | |
Discount Rate In Basis Points [Domain] | UNITED KINGDOM | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 125 | ||
Discount Rate In Basis Points [Domain] | UNITED STATES | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 36 |
Postretirement Benefit Plans -
Postretirement Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plan [Member] | |||
Components of net periodic benefit cost: | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 23.2 | $ 60.9 | $ 21.1 |
Postretirement Benefit Plans [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | (0.1) | (0.3) | (0.4) |
Interest cost | (9.1) | (11) | (10.9) |
Expected return on plan assets | (5.6) | (6.3) | (7.3) |
Amortization of prior service (credit) cost | 1 | (1) | (0.8) |
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 4 | (4.5) | (1) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | 0 | 0.1 | 0 |
Net periodic benefit cost | $ (1.4) | $ 10.6 | $ 5.8 |
Postretirement Benefit Plans 97
Postretirement Benefit Plans - Assumptions (Details) - Other Postretirement Benefits Plan [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions: | |||
Discount rate | 3.97% | 4.39% | 3.95% |
Rate of return | 6.00% | 6.00% | 6.25% |
Postretirement Benefit Plans 98
Postretirement Benefit Plans - Change in Benefit Obligation, Plan Assets, Funded Status, and Balance Sheet Items (Details) - Postretirement Benefit Plans [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.97% | 4.39% | 3.95% |
Discount rate | 3.57% | 3.97% | |
Expected long-term return on plan assets | 6.00% | 6.00% | 6.25% |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | $ 241.4 | $ 262.7 | |
Service cost | 0.1 | 0.3 | $ 0.4 |
Interest cost | 9.1 | 11 | 10.9 |
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | 1.2 | (11.4) | |
International plan exchange rate change | (0.3) | 4.3 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | 31.7 | 25.5 | |
Benefit obligation at end of year | $ 219.8 | $ 241.4 | $ 262.7 |
Postretirement Benefit Plans 99
Postretirement Benefit Plans - Change in Plan Assets (Details) - Postretirement Benefit Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | $ 102.4 | $ 112.1 |
Return on plan assets | 12.4 | 9.7 |
Actual return on plan assets | 9.3 | 6.1 |
Defined Benefit Plan, Plan Assets, Benefits Paid | 31.7 | 25.5 |
Fair value of plan assets at end of year | 92.4 | 102.4 |
Funded status at end of year | $ (127.4) | $ (139) |
Postretirement Benefit Plans100
Postretirement Benefit Plans - Balance Sheet Items (Details) - Postretirement Benefit Plans [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Amounts recognized on the Consolidated Balance Sheets: | ||
Current liabilities | $ (4.8) | $ (7.5) |
Non-current liabilities | (122.6) | (131.5) |
Total | $ (127.4) | $ (139) |
Postretirement Benefit Plans101
Postretirement Benefit Plans - AOCL (Details) - Postretirement Benefit Plans [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Amounts recognized in accumulated other comprehensive income: | |||
Net prior service cost | $ (8.1) | $ (10.3) | |
Accumulated other comprehensive income | $ (8.1) | $ (10.3) | $ 2.2 |
Postretirement Benefit Plans102
Postretirement Benefit Plans - Change in Plan Assets and Benefit Obligations in AOCL (Details) - Postretirement Benefit Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), before Tax | $ 1.2 | $ (11.4) |
Changes to prior service cost recognized in accumulated other comprehensive (income) loss: | ||
Accumulated other comprehensive income (loss) at beginning of year | (10.3) | 2.2 |
Recognized prior service credit (cost) | 1 | (1) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), before Tax | 0 | (0.1) |
Total recognized in accumulated other comprehensive income at December 31 | $ (8.1) | $ (10.3) |
Postretirement Benefit Plans103
Postretirement Benefit Plans - Benefit Obligation Assumptions (Details) - Postretirement Benefit Plans [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 1.2 | $ (11.4) |
Assumptions: | ||
Discount rate | 3.57% | 3.97% |
Postretirement Benefit Plans104
Postretirement Benefit Plans - Target Allocation (Details) - Postretirement Benefit Plans [Member] | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Asset Allocation | 100.00% | 100.00% |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Asset Allocation | 17.00% | 30.00% |
Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual Asset Allocation | 83.00% | 70.00% |
Minimum [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Target Allocation | 14.00% | |
Minimum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Target Allocation | 80.00% | |
Maximum [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Target Allocation | 20.00% | |
Maximum [Member] | Debt Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current Target Allocation | 86.00% |
Postretirement Benefit Plans105
Postretirement Benefit Plans - Trust Assets Measured at Fair Value (Details) - Postretirement Benefit Plans [Member] - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets: | |||
Total Assets | $ 92.4 | $ 102.4 | $ 112.1 |
Fair Value, Measurements, Recurring [Member] | |||
Assets: | |||
Total Assets | 92.4 | 102.4 | |
Fair Value, Measurements, Recurring [Member] | Cash and cash equivalents [Member] | |||
Assets: | |||
Total Assets | 13 | 2.1 | |
Fair Value, Measurements, Recurring [Member] | Common Collective funds - domestic equities [Member] | |||
Assets: | |||
Total Assets | 9.5 | 18.5 | |
Fair Value, Measurements, Recurring [Member] | Common collective funds - international equities [Member] | |||
Assets: | |||
Total Assets | 6.7 | 12.3 | |
Fair Value, Measurements, Recurring [Member] | Fixed Income Funds [Member] | |||
Assets: | |||
Total Assets | $ 63.2 | $ 69.5 |
Postretirement Benefit Plans106
Postretirement Benefit Plans - Future Benefit Payments (Details) $ in Millions | Dec. 31, 2017USD ($) |
Net Including Medicare Subsidies Postretirement Benefits [Member] | |
Future pension benefit payments | |
2,018 | $ 23.7 |
2,019 | 22.2 |
2,020 | 20.7 |
2,021 | 19.5 |
2,022 | 18.3 |
2023-2027 | 74.6 |
Expected Medicare Subsidies Postretirement Benefits [Member] | |
Future pension benefit payments | |
2,018 | 1.2 |
2,019 | 1.2 |
2,020 | 1.3 |
2,021 | 1.3 |
2,022 | 1.3 |
2023-2027 | 6.3 |
Gross Postretirement Benefits [Member] | |
Future pension benefit payments | |
2,018 | 24.9 |
2,019 | 23.4 |
2,020 | 22 |
2,021 | 20.8 |
2,022 | 19.6 |
2023-2027 | $ 80.9 |
Postretirement Benefit Plans107
Postretirement Benefit Plans - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Postretirement Benefit Plans (Textual) [Abstract] | |||
Weighted Average annual rate of increase for prescription drug benefits and HMO benefits in 2013 | 8.25% | ||
Postretirement Benefit Plans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment | $ 1,200,000 | $ (11,400,000) | |
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 4,000,000 | (4,500,000) | $ (1,000,000) |
Current liabilities | $ 4,800,000 | $ 7,500,000 | |
Postretirement Benefit Plans (Textual) [Abstract] | |||
Discount rate related to the postretirement plans | 3.97% | 4.39% | 3.95% |
Expected amortization of prior service cost | $ 1,700,000 | ||
Weighted average annual rate of increase in the per capita cost for medical benefits in 2013 | 6.25% | ||
Weighted average annual rate of increase in the per capita cost for medical benefits declining gradually | 5.00% | ||
Weighted average annual rate of increase in the per capita cost for medical benefits declining gradually in 2013 | 6.25% | ||
Effect of one percentage point increase on service and interest cost components | $ 200,000 | ||
Effect of one percentage point increase on accumulated postretirement benefit obligation | 4,400,000 | ||
Effect of one percentage point decrease on service and interest cost components | (200,000) | ||
Effect of one percentage point decrease on accumulated postretirement benefit obligation | (3,900,000) | ||
Expected subsidy for 2012 | 1,700,000 | ||
Expected subsidy received prior to Dec. 31, 2012 | $ 900,000 | ||
Expected long-term return on plan assets | 6.00% | 6.00% | 6.25% |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement and Curtailment | $ 0 | $ 100,000 | $ 0 |
Prescription Drug Benefits [Member] | |||
Postretirement Benefit Plans (Textual) [Abstract] | |||
Health care cost trend Rate year | 2,023 | ||
Weighted Average annual rate of increase in per capita for prescription drug benefits and HMO benefits, declining | 5.00% | ||
Health Maintenance Organization (HMO) [Member] | |||
Postretirement Benefit Plans (Textual) [Abstract] | |||
Health care cost trend Rate year | 2,031 | ||
Weighted Average annual rate of increase in per capita for prescription drug benefits and HMO benefits, declining | 5.00% | ||
Scenario, Forecast [Member] | Postretirement Benefit Plans [Member] | |||
Postretirement Benefit Plans (Textual) [Abstract] | |||
Discount rate related to the postretirement plans | 3.57% | ||
Expected long-term return on plan assets | 4.50% | ||
Employee Opt-Out Program [Member] | Postretirement Benefit Plans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 14,400,000 | ||
Mortality Tables [Member] | Postretirement Benefit Plans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 5,000,000 | ||
Return on Plan Assets vs. Expectation [Domain] | Postretirement Benefit Plans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 3,700,000 | 200,000 | 8,600,000 |
Other Valuation Assumptions [Domain] | Postretirement Benefit Plans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 12,200,000 | 3,900,000 | 1,700,000 |
Discount Rate In Basis Points [Domain] | Postretirement Benefit Plans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | 40 | 42 | 44 |
Discount Rate In Dollars [Domain] | Postretirement Benefit Plans [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 6,900,000 | $ 8,200,000 | $ 9,300,000 |
Segment Information - Geographi
Segment Information - Geographical Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | $ 778 | $ 771.4 | $ 750.6 | $ 703.8 | $ 654.8 | $ 657.4 | $ 673.6 | $ 684 | $ 3,003.8 | $ 2,669.8 | $ 2,872.3 | $ 20.6 |
Property, Plant and Equipment, Net | 864.2 | 804.4 | 864.2 | 804.4 | 777.8 | |||||||
United States [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 1,603 | 1,478.6 | 1,566.1 | |||||||||
Property, Plant and Equipment, Net | 392.1 | 418 | 392.1 | 418 | 446.7 | |||||||
Canada Mexico and South America [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 333.2 | 308.2 | 339.7 | |||||||||
Property, Plant and Equipment, Net | 14.7 | 14.9 | 14.7 | 14.9 | 10.6 | |||||||
EMEA [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 570.3 | 461.3 | 496.7 | |||||||||
Property, Plant and Equipment, Net | 203.4 | 141.1 | 203.4 | 141.1 | 92.5 | |||||||
Asia Pacific [Member] | ||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||
Net sales | 497.3 | 421.7 | 469.8 | |||||||||
Property, Plant and Equipment, Net | $ 254 | $ 230.4 | $ 254 | $ 230.4 | $ 228 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | $ 352.6 | $ 236.6 | $ 413.1 | |||||||||
Segment Reporting Unallocated Corporate Expenses | 58.5 | 61.4 | 44.8 | |||||||||
Continued Dumping And Subsidy Offset Act Receipt Net Of Expenses | $ 6 | $ 6.1 | $ 47.7 | 0 | 59.6 | 0 | ||||||
Unallocated Portion of Pension Settlement Charges | 0 | (1.6) | (119.9) | |||||||||
Net sales to external customers: | ||||||||||||
Net sales | $ 778 | $ 771.4 | $ 750.6 | $ 703.8 | 654.8 | $ 657.4 | $ 673.6 | $ 684 | 3,003.8 | 2,669.8 | 2,872.3 | $ 20.6 |
Segment EBIT: | ||||||||||||
Interest expense | (37.1) | (33.5) | (33.4) | |||||||||
Interest income | 2.9 | 1.9 | 2.7 | |||||||||
Income Before Income Taxes | 259.9 | 201.6 | 217.7 | |||||||||
Assets employed at year-end: | ||||||||||||
Assets employed at year-end | 3,402.4 | 2,763.2 | 3,402.4 | 2,763.2 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 104.7 | 137.5 | 105.6 | |||||||||
Depreciation and amortization: | ||||||||||||
Depreciation and amortization | 137.7 | 131.7 | 130.8 | |||||||||
Mobile Industries [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 132.1 | 87.1 | 205.5 | |||||||||
Net sales to external customers: | ||||||||||||
Net sales | 1,640 | 1,446.4 | 1,558.3 | |||||||||
Assets employed at year-end: | ||||||||||||
Assets employed at year-end | 1,775.7 | 1,162.7 | 1,775.7 | 1,162.7 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 57.3 | 88.4 | 47.5 | |||||||||
Depreciation and amortization: | ||||||||||||
Depreciation and amortization | 70 | 64.9 | 61.4 | |||||||||
Process Industries [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 220.5 | 149.5 | 207.6 | |||||||||
Net sales to external customers: | ||||||||||||
Net sales | 1,363.8 | 1,223.4 | 1,314 | |||||||||
Assets employed at year-end: | ||||||||||||
Assets employed at year-end | 1,383.1 | 1,322.2 | 1,383.1 | 1,322.2 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 46.2 | 48.4 | 57.5 | |||||||||
Depreciation and amortization: | ||||||||||||
Depreciation and amortization | 66.6 | 65.6 | 68.1 | |||||||||
Corporate [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Continued Dumping And Subsidy Offset Act Receipt Net Of Expenses | 0 | 59.6 | 0 | |||||||||
Assets employed at year-end: | ||||||||||||
Assets employed at year-end | $ 243.6 | $ 278.3 | 243.6 | 278.3 | ||||||||
Payments to Acquire Property, Plant, and Equipment | 1.2 | 0.7 | 0.6 | |||||||||
Depreciation and amortization: | ||||||||||||
Depreciation and amortization | $ 1.1 | $ 1.2 | $ 1.3 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |
Number of Reporting Units | 2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current Fiscal Year End Date | --12-31 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||
United States | $ 107.4 | $ 102.3 | $ 70.5 |
Non-United States | 152.5 | 99.3 | 147.2 |
Income Before Income Taxes | 259.9 | 201.6 | 217.7 |
Current: | |||
Federal | 9.1 | 44.1 | 26.8 |
State and local | 4.6 | 0.1 | 5.4 |
Foreign | 44.3 | 31.3 | 16.3 |
Current income tax expenses Total | 58 | 75.5 | 48.5 |
Deferred: | |||
Federal | 13.6 | (20.5) | (13.7) |
State and local | (4.6) | 0.1 | (3.9) |
Foreign | (9.4) | 5.4 | (4.6) |
Deferred income tax provision | (0.4) | (15) | (22.2) |
United States and foreign tax provision on income | $ 57.6 | $ 60.5 | $ 26.3 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Summary of variation of effective income tax rate from continuing operations from the statutory federal income tax rate | |||
Income tax at the U.S. federal statutory rate | $ 91 | $ 70.6 | $ 76.2 |
Adjustments: | |||
State and local income taxes, net of federal tax benefit | 3.1 | 2.6 | 4.3 |
Tax on foreign remittances and U.S. tax on foreign income | 93 | 8.3 | 13.8 |
Foreign losses without current tax benefits | 8.9 | 6.4 | 5.3 |
Foreign earnings taxed at different rates including tax holidays | (18) | (5.2) | (14.9) |
U.S. domestic manufacturing deduction | (3.9) | (5) | (4.5) |
U.S. foreign tax credit | (104.2) | (8) | (22.4) |
U.S. research tax credit | (1.5) | (0.6) | (1.1) |
Accruals and settlements related to tax audits | (34.4) | (8.1) | (5.9) |
Valuation Allowances and Reserves, Adjustments | (12.6) | 0.2 | (34.7) |
Other Tax Expense (Benefit) | 35.3 | 0 | 0 |
Deferred Other Tax Expense (Benefit) | 0 | (1.3) | 11.6 |
Other items, net | 0.9 | 0.6 | (1.4) |
United States and foreign tax provision on income | $ 57.6 | $ 60.5 | $ 26.3 |
Effective Income Tax Rate Reconciliation, Percent | 22.20% | 30.00% | 12.10% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Current Fiscal Year End Date | --12-31 | |
Deferred tax assets: | ||
Accrued postretirement benefits cost | $ 35.7 | $ 56.8 |
Accrued pension cost | 53.4 | 63.3 |
Other employee benefit accruals | 6.4 | 11.5 |
Tax loss and credit carryforwards | 92.6 | 84.7 |
Other, net | 29 | 43.8 |
Valuation allowances | (79.4) | (85.5) |
Total deferred tax assets | 137.7 | 174.6 |
Deferred tax liabilities - principally depreciation and amortization | (120.7) | (127) |
Net deferred tax assets | $ 17 | $ 47.6 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 35.9 | $ 38 | ||
Summary of unrecognized tax benefits for the years ended | ||||
Beginning balance, January 1 | $ 39.2 | 50.4 | 57.5 | |
Tax positions related to the current year Additions | 2.7 | 0 | 6.5 | |
Tax positions related to prior years Addtiions | 6.9 | 5.7 | 5 | |
Tax positions related to prior years Reductions | $ (34) | (5.2) | (7.8) | (4) |
Settlements with tax authorities | 0 | (9.1) | (14.6) | |
Lapses in statutes of limitations | (29.6) | 0 | 0 | |
Ending balance, December 31 | 14 | 39.2 | 50.4 | |
Income Tax Examination, Penalties and Interest Accrued | $ 3 | $ 8.5 | $ 12.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes (Textual) [Abstract] | ||||
Current Fiscal Year End Date | --12-31 | |||
Increase (Decrease) in Income Taxes | $ (36.2) | $ 23.5 | $ (40.4) | |
Income Taxes Paid | $ 89.9 | 49.7 | 83.3 | |
Effective tax rate on the pretax income relative to U.S. federal statutory | 35.00% | |||
Effect Income Tax Rate Reconciliation, at federal statutory income tax rate resulting form the U.S. Tax Cut and Job Act, percent | 21.00% | |||
Accruals and settlements related to tax audits | $ 25.2 | |||
Deferred Federal, State and Local, Tax Expense (Benefit) | (0.4) | (15) | (22.2) | |
Total gross unrecognized tax benefits | 14 | 39.2 | 50.4 | $ 57.5 |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 3.9 | |||
Deferred Tax Assets, Valuation Allowance | 79.4 | 85.5 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 35.9 | 38 | ||
Income Tax Examination, Penalties and Interest Accrued | 3 | 8.5 | $ 12.2 | |
Earnings Reinvested Outside of U.S. | 479.6 | $ 561.7 | ||
The Tax Cut and Jobs Act of 2018 [Member] | ||||
Income Taxes (Textual) [Abstract] | ||||
Deferred Federal, State and Local, Tax Expense (Benefit) | 10.1 | |||
Domestic Country [Member] | ||||
Income Taxes (Textual) [Abstract] | ||||
Operating Loss Carryforwards | 2.5 | |||
Deferred Tax Assets, Valuation Allowance | 14.6 | |||
Foreign Country [Member] | ||||
Income Taxes (Textual) [Abstract] | ||||
Operating Loss Carryforwards | 90.1 | |||
Operating Loss Carryforwards, Valuation Allowance | $ 64.8 |
Fair Value Fair Value on Recurr
Fair Value Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 13.1 | $ 19.2 |
Restricted Cash and Cash Equivalents, Current | 3.8 | 2.7 |
Investments, Fair Value Disclosure | 0.2 | 2.3 |
Derivative Asset | 1.3 | 9.9 |
Derivative Liability | 7.1 | 2.1 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 108.5 | 129.6 |
Restricted Cash and Cash Equivalents, Current | 3.8 | 2.7 |
Investments, Fair Value Disclosure | 16.2 | 9.4 |
Derivative Asset | 1.3 | 9.9 |
Assets, Fair Value Disclosure, Recurring | 143.1 | 173.1 |
Derivative Liability | 7.1 | 2.1 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 7.1 | 2.1 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 107.3 | 125 |
Restricted Cash and Cash Equivalents, Current | 3.8 | 2.7 |
Investments, Fair Value Disclosure | 0 | 0 |
Derivative Asset | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 111.1 | 127.7 |
Derivative Liability | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 1.2 | 4.6 |
Restricted Cash and Cash Equivalents, Current | 0 | 0 |
Investments, Fair Value Disclosure | 16.2 | 9.4 |
Derivative Asset | 1.3 | 9.9 |
Assets, Fair Value Disclosure, Recurring | 18.7 | 23.9 |
Derivative Liability | 7.1 | 2.1 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 7.1 | 2.1 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Restricted Cash and Cash Equivalents, Current | 0 | 0 |
Investments, Fair Value Disclosure | 0 | 0 |
Derivative Asset | 0 | 0 |
Assets, Fair Value Disclosure, Recurring | 0 | 0 |
Derivative Liability | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value Fair Value Nonrecurr
Fair Value Fair Value Nonrecurring Basis (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Held-for-sale, Not Part of Disposal Group, Other | $ 200,000 | $ 5,800,000 | |
Impairment of Long-Lived Assets to be Disposed of | (200,000) | (3,000,000) | |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 2,800,000 | |
Long Lived Assets Held and Used Carrying Amount | 6,100,000 | 800,000 | |
Impairment of Long-Lived Assets Held-for-use | (3,600,000) | (300,000) | |
Long Lived Assets Held and Used Fair Value | $ 2,500,000 | 500,000 | |
Land [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets Held-for-sale, Not Part of Disposal Group, Other | 5,800,000 | ||
Impairment of Long-Lived Assets to be Disposed of | (3,000,000) | ||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,800,000 | ||
Property, Plant and Equipment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long Lived Assets Held and Used Carrying Amount | 800,000 | ||
Impairment of Long-Lived Assets Held-for-use | 300,000 | ||
Long Lived Assets Held and Used Fair Value | $ 500,000 | ||
Altavista Bearing Plant [Member] [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long Lived Assets Held and Used Fair Value | $ 2,500,000 | ||
Benoni [Member] | Property, Plant and Equipment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long Lived Assets Held and Used Carrying Amount | 500,000 | ||
Impairment of Long-Lived Assets Held-for-use | 500,000 | ||
Long Lived Assets Held and Used Fair Value | $ 0 |
Fair Value Long-lived assets he
Fair Value Long-lived assets held nonrecurring basis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets Held-for-sale, Not Part of Disposal Group, Other | $ 0.2 | $ 5.8 |
Impairment of Long-Lived Assets to be Disposed of | (0.2) | (3) |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 2.8 |
Long Lived Assets Held and Used Carrying Amount | 6.1 | 0.8 |
Impairment of Long-Lived Assets Held-for-use | 3.6 | 0.3 |
Long Lived Assets Held and Used Fair Value | $ 2.5 | 0.5 |
Property, Plant and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long Lived Assets Held and Used Carrying Amount | 0.8 | |
Impairment of Long-Lived Assets Held-for-use | (0.3) | |
Long Lived Assets Held and Used Fair Value | $ 0.5 |
Fair Value (Details)
Fair Value (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Assets Held-for-sale, Not Part of Disposal Group, Other | $ 200,000 | $ 5,800,000 | |||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | 2,800,000 | |||||
Impairment of Long-Lived Assets to be Disposed of | (200,000) | (3,000,000) | |||||
Long Lived Assets Held and Used Carrying Amount | 6,100,000 | 800,000 | |||||
Long Lived Assets Held and Used Fair Value | 2,500,000 | 500,000 | |||||
Impairment of Long-Lived Assets Held-for-use | (3,600,000) | (300,000) | |||||
Long-term fixed-rate debt, fair value | 532,200,000 | $ 720,300,000 | |||||
Long-term Fixed-rate Debt, Carrying Value | 507,300,000 | $ 682,400,000 | |||||
Benoni [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Gain (Loss) on Sale of Properties | $ 1,900,000 | ||||||
Altavista Bearing Plant [Member] [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Long Lived Assets Held and Used Carrying Amount | $ 5,600,000 | ||||||
Long Lived Assets Held and Used Fair Value | 3,200,000 | ||||||
Impairment of Long-Lived Assets Held-for-use | $ (700,000) | (2,400,000) | |||||
Gain (Loss) on Sale of Properties | $ 1,600,000 | ||||||
Land [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Assets Held-for-sale, Not Part of Disposal Group, Other | 200,000 | ||||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 0 | ||||||
Impairment of Long-Lived Assets to be Disposed of | $ 200,000 | ||||||
Repair Business [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Assets Held-for-sale, Not Part of Disposal Group, Other | 5,800,000 | ||||||
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 2,800,000 | ||||||
Impairment of Long-Lived Assets to be Disposed of | (3,000,000) | ||||||
Property, Plant and Equipment [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Long Lived Assets Held and Used Carrying Amount | 800,000 | ||||||
Long Lived Assets Held and Used Fair Value | 500,000 | ||||||
Impairment of Long-Lived Assets Held-for-use | $ 300,000 | ||||||
Property, Plant and Equipment [Member] | Benoni [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Long Lived Assets Held and Used Carrying Amount | 500,000 | ||||||
Long Lived Assets Held and Used Fair Value | 0 | ||||||
Impairment of Long-Lived Assets Held-for-use | 500,000 | ||||||
Property, Plant and Equipment [Member] | Altavista Bearing Plant [Member] [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Impairment of Long-Lived Assets Held-for-use | $ 3,100,000 | ||||||
Altavista Bearing Plant [Member] [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Long Lived Assets Held and Used Fair Value | $ 2,500,000 |
Derivatives and Hedging Acti120
Derivatives and Hedging Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | |||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | $ (7.1) | $ 0.2 | $ (3) |
Derivative, Notional Amount | 386.9 | 282.8 | |
Foreign Currency Fair Value Hedge Asset at Fair Value | 0.5 | 2.3 | |
Foreign Currency Fair Value Hedge Liability at Fair Value | 2.1 | 0.5 | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Asset at Fair Value | 0.8 | 7.6 | |
Foreign Currency Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value | 5 | 1.6 | |
Derivative Asset | 1.3 | 9.9 | |
Derivative Liability | 7.1 | 2.1 | |
Unrealized Gain on Foreign Currency Derivatives, before Tax | (4.7) | (0.2) | (3) |
Unrealized Gain (Loss) on Interest Rate Cash Flow Hedges, Pretax, Accumulated Other Comprehensive Income (Loss) | (2.4) | 0 | 0 |
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (1.4) | 0 | 1.5 |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | (0.4) | (0.3) | (0.3) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (1.8) | (0.3) | 1.2 |
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | $ 10.2 | $ 0.1 | $ 5.7 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Research and Development Expense | $ 35.3 | $ 31.8 | $ 32.6 |
Continued Dumping and Subsid122
Continued Dumping and Subsidy Act (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CDSOA [Abstract] | ||||||
Continued Dumping & Subsidy Offset Act (CDSOA) receipts, net of expense | $ 6 | $ 6.1 | $ 47.7 | $ 0 | $ 59.6 | $ 0 |
Continued Dumping and Subsidy Offset Act, distributions | $ 60.6 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) | Apr. 30, 2015USD ($) | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($) |
Quarterly Financial Data | ||||||||||||||
Net sales | $ 778,000,000 | $ 771,400,000 | $ 750,600,000 | $ 703,800,000 | $ 654,800,000 | $ 657,400,000 | $ 673,600,000 | $ 684,000,000 | $ 3,003,800,000 | $ 2,669,800,000 | $ 2,872,300,000 | $ 20,600,000 | ||
Gross Profit | 211,100,000 | 217,000,000 | 201,800,000 | 180,500,000 | 131,200,000 | 169,700,000 | 184,500,000 | 183,100,000 | 810,400,000 | 668,500,000 | 819,500,000 | |||
Selling, General and Administrative Expense | 144,000,000 | 134,000,000 | 123,800,000 | 119,600,000 | 139,400,000 | 107,200,000 | 108,000,000 | 116,100,000 | 521,400,000 | 470,700,000 | 457,700,000 | |||
Impairment and restructuring charges | 500,000 | 1,300,000 | 800,000 | 1,700,000 | 3,000,000 | 5,300,000 | 2,900,000 | 10,500,000 | 4,300,000 | 21,700,000 | 14,700,000 | |||
Gain (Loss) on Disposition of Business | $ (300,000) | $ (29,000,000) | 0 | 0 | (28,700,000) | |||||||||
Pension Settlement Charges | 0 | 1,600,000 | 119,900,000 | |||||||||||
Net Income | 28,100,000 | 54,100,000 | 82,000,000 | 38,100,000 | (6,900,000) | 34,000,000 | 48,200,000 | 65,800,000 | 202,300,000 | 141,100,000 | 191,400,000 | |||
Net (loss) income attributable to noncontrolling interest | (1,100,000) | 600,000 | (500,000) | (100,000) | 0 | 400,000 | 0 | (100,000) | (1,100,000) | 300,000 | 2,800,000 | |||
Net Income (Loss) Attributable to The Timken Company | $ 29,200,000 | $ 53,500,000 | $ 82,500,000 | $ 38,200,000 | $ (6,900,000) | $ 33,600,000 | $ 48,200,000 | $ 65,900,000 | $ 203,400,000 | $ 140,800,000 | $ 188,600,000 | |||
Earnings Per Share, Basic | $ / shares | $ 0.38 | $ 0.69 | $ 1.06 | $ 0.49 | $ (0.09) | $ 0.43 | $ 0.61 | $ 0.83 | $ 2.62 | $ 1.79 | $ 2.23 | |||
Net income per share - Diluted: | ||||||||||||||
Earnings Per Share, Diluted | $ / shares | 0.37 | 0.68 | 1.04 | 0.48 | (0.09) | 0.43 | 0.61 | 0.82 | 2.58 | 1.78 | 2.21 | |||
Dividends per share (in dollars per share) | $ / shares | $ 0.27 | $ 0.27 | $ 0.27 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.26 | $ 1.07 | $ 1.04 | $ 1.03 | |||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | $ 34,000,000 | $ 5,200,000 | $ 7,800,000 | $ 4,000,000 | ||||||||||
Other Tax Expense (Benefit) | 35,300,000 | 0 | $ 0 | |||||||||||
Fixed Asset Write-Off | 9,700,000 | |||||||||||||
After Tax Amount of Fixed Asset Write Off | 6,100,000 | |||||||||||||
Earnings per share effect of fixed asset write-off | $ 0.07 | |||||||||||||
Number of U.S. Timken retirees | 8,400 | |||||||||||||
Quarterly Financial Data (Textual) [Abstract] | ||||||||||||||
Severance expense and related benefit costs | $ 3,300,000 | $ 7,700,000 | 3,500,000 | 15,300,000 | $ 7,700,000 | |||||||||
Impairment charges | 100,000 | 3,900,000 | 3,300,000 | |||||||||||
Exit costs | 800,000 | 200,000 | 700,000 | 2,500,000 | 3,700,000 | |||||||||
Continued Dumping And Subsidy Offset Act Receipt Net Of Expenses | $ 6,000,000 | $ 6,100,000 | 47,700,000 | 0 | 59,600,000 | 0 | ||||||||
Other Asset Impairment Charges | $ 1,200,000 | $ 2,600,000 | ||||||||||||
Impairment charges | 100,000 | 3,900,000 | 3,300,000 | |||||||||||
Restatement Adjustment [Member] | ||||||||||||||
Quarterly Financial Data | ||||||||||||||
Gross Profit | 32,900,000 | 5,600,000 | (26,300,000) | 25,600,000 | ||||||||||
Selling, General and Administrative Expense | 27,400,000 | 3,400,000 | 20,700,000 | (36,600,000) | ||||||||||
Pension Settlement Charges | (17,300,000) | (26,500,000) | (345,100,000) | |||||||||||
Net Income | $ 31,000,000 | 13,000,000 | (11,800,000) | 259,400,000 | ||||||||||
Net Income (Loss) Attributable to The Timken Company | $ 13,000,000 | $ (11,800,000) | $ 259,400,000 | |||||||||||
Earnings Per Share, Basic | $ / shares | $ 0.17 | $ (0.15) | $ 3.07 | |||||||||||
Net income per share - Basic: | ||||||||||||||
Basic earnings per share (in dollars per share) | $ / shares | $ 0.40 | |||||||||||||
Net income per share - Diluted: | ||||||||||||||
Earnings Per Share, Diluted | $ / shares | $ 0.17 | $ (0.14) | $ 3.05 | |||||||||||
Cost of Sales [Member] | ||||||||||||||
Net income per share - Diluted: | ||||||||||||||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 2,200,000 | $ 35,600,000 | ||||||||||||
Selling, General and Administrative Expenses [Member] | ||||||||||||||
Net income per share - Diluted: | ||||||||||||||
Defined Benefit Plan, Actuarial Gain (Loss), Immediate Recognition as Component in Net Periodic Benefit (Cost) Credit | $ 11,500,000 | $ 29,800,000 |
Schedule 2 Valuation and Qua124
Schedule 2 Valuation and Qualifying Accounts Schedule 2 Valuation and Qualifying Accounts - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Allowance for Doubtful Accounts, Current [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | $ 20.3 | $ 20.2 | $ 16.9 | $ 13.7 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | [1] | 3.8 | 4.8 | 6.8 | |
Valuation Allowances and Reserves, Charged to Other Accounts | [2] | 0.4 | 0.2 | 0.6 | |
Valuation Allowances and Reserves, Deductions | [3] | 4.1 | 1.7 | 4.2 | |
Inventory Valuation Reserve [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | 29.9 | 21.1 | 18.4 | 12.8 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 10.3 | 13.4 | 9.6 | ||
Valuation Allowances and Reserves, Charged to Other Accounts | [2] | 5.9 | 0.4 | 2.7 | |
Valuation Allowances and Reserves, Deductions | [4] | 7.4 | 11.1 | 6.7 | |
Valuation Allowance of Deferred Tax Assets [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Valuation Allowances and Reserves, Balance | 79.4 | 85.5 | 83.7 | $ 145.4 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | [5] | 6.5 | 3.8 | 4.1 | |
Valuation Allowances and Reserves, Charged to Other Accounts | [6] | 0 | 0 | (14.1) | |
Valuation Allowances and Reserves, Deductions | [7] | $ 12.6 | $ 2 | $ 51.7 | |
[1] | Provision for uncollectible accounts included in expenses. | ||||
[2] | Currency translation and change in reserves due to acquisitions, net of divestitures. | ||||
[3] | Actual accounts written off against the allowance, net of recoveries. | ||||
[4] | Inventory items written off against the allowance. | ||||
[5] | Increase in valuation allowance is recorded as a component of the provision for income taxes. | ||||
[6] | Includes valuation allowances recorded against other comprehensive income/loss or goodwill. | ||||
[7] | Amount primarily relates to the reversal of valuation allowances due to the realization of net operating loss carryforwards. |
Uncategorized Items - tkr10k123
Label | Element | Value |
Accounting Standard Update 2016-09 [Domain] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,500,000 |