þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
State of Indiana | 13-5158950 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
ITEM | PAGE | |
PART I – FINANCIAL INFORMATION | ||
1. | ||
2. | ||
3. | ||
4. | ||
PART II – OTHER INFORMATION | ||
1. | ||
1A. | ||
2. | ||
3. | ||
4. | ||
5. | ||
6. | ||
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Revenue | $ | 609.1 | $ | 588.7 | |||
Costs of revenue | 413.8 | 389.7 | |||||
Gross profit | 195.3 | 199.0 | |||||
General and administrative expenses | 69.0 | 60.1 | |||||
Sales and marketing expenses | 43.3 | 47.3 | |||||
Research and development expenses | 19.2 | 18.3 | |||||
Asbestos-related costs, net | 12.8 | 15.4 | |||||
Operating income | 51.0 | 57.9 | |||||
Interest and non-operating expenses, net | 1.7 | 1.2 | |||||
Income from continuing operations before income tax expense | 49.3 | 56.7 | |||||
Income tax expense | 11.7 | 18.1 | |||||
Income from continuing operations | 37.6 | 38.6 | |||||
(Loss) income from discontinued operations, including tax benefit of $0.3 and $3.5, respectively | (0.3 | ) | 3.4 | ||||
Net income | 37.3 | 42.0 | |||||
Less: Loss attributable to noncontrolling interests | (0.1 | ) | (0.1 | ) | |||
Net income attributable to ITT Corporation | $ | 37.4 | $ | 42.1 | |||
Amounts attributable to ITT Corporation: | |||||||
Income from continuing operations, net of tax | $ | 37.7 | $ | 38.7 | |||
(Loss) income from discontinued operations, net of tax | (0.3 | ) | 3.4 | ||||
Net income | $ | 37.4 | $ | 42.1 | |||
Earnings (loss) per share attributable to ITT Corporation: | |||||||
Basic: | |||||||
Continuing operations | $ | 0.42 | $ | 0.42 | |||
Discontinued operations | — | 0.04 | |||||
Net income | $ | 0.42 | $ | 0.46 | |||
Diluted: | |||||||
Continuing operations | $ | 0.42 | $ | 0.42 | |||
Discontinued operations | (0.01 | ) | 0.04 | ||||
Net income | $ | 0.41 | $ | 0.46 | |||
Weighted average common shares – basic | 89.6 | 90.6 | |||||
Weighted average common shares – diluted | 90.5 | 91.6 | |||||
Cash dividends declared per common share | $ | 0.124 | $ | 0.1183 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Net income | $ | 37.3 | $ | 42.0 | |||
Other comprehensive income (loss): | |||||||
Net foreign currency translation adjustment | 27.2 | (60.9 | ) | ||||
Net change in postretirement benefit plans, net of tax impacts of $0.6 and $0.3, respectively | 1.1 | 0.5 | |||||
Other comprehensive income (loss) | 28.3 | (60.4 | ) | ||||
Comprehensive income (loss) | 65.6 | (18.4 | ) | ||||
Less: Comprehensive loss attributable to noncontrolling interests | (0.1 | ) | (0.1 | ) | |||
Comprehensive income (loss) attributable to ITT Corporation | $ | 65.7 | $ | (18.3 | ) | ||
Disclosure of reclassification and other adjustments to postretirement benefit plans | |||||||
Reclassification adjustments (see Note 14): | |||||||
Amortization of prior service benefit, net of tax expense of $(0.5) and $(0.9), respectively | $ | (0.9 | ) | $ | (1.6 | ) | |
Amortization of net actuarial loss, net of tax benefits of $1.1 and $1.2, respectively | 2.0 | 2.1 | |||||
Net change in postretirement benefit plans, net of tax | $ | 1.1 | $ | 0.5 |
March 31, 2016 | December 31, 2015 | ||||||||
(Unaudited) | |||||||||
Assets | |||||||||
Current assets: | |||||||||
Cash and cash equivalents | $ | 430.9 | $ | 415.7 | |||||
Receivables, net | 607.0 | 584.9 | |||||||
Inventories, net | 301.3 | 292.7 | |||||||
Other current assets | 227.0 | 204.4 | |||||||
Total current assets | 1,566.2 | 1,497.7 | |||||||
Plant, property and equipment, net | 443.0 | 443.5 | |||||||
Goodwill | 787.6 | 778.3 | |||||||
Other intangible assets, net | 181.2 | 187.2 | |||||||
Asbestos-related assets | 331.3 | 337.5 | |||||||
Deferred income taxes | 322.6 | 326.1 | |||||||
Other non-current assets | 177.3 | 153.3 | |||||||
Total non-current assets | 2,243.0 | 2,225.9 | |||||||
Total assets | $ | 3,809.2 | $ | 3,723.6 | |||||
Liabilities and Shareholders’ Equity | |||||||||
Current liabilities: | |||||||||
Short-term loans and current maturities of long-term debt | $ | 275.2 | $ | 245.7 | |||||
Accounts payable | 293.5 | 314.7 | |||||||
Accrued liabilities | 385.3 | 392.7 | |||||||
Total current liabilities | 954.0 | 953.1 | |||||||
Asbestos-related liabilities | 957.0 | 954.8 | |||||||
Postretirement benefits | 260.6 | 260.4 | |||||||
Other non-current liabilities | 214.7 | 189.9 | |||||||
Total non-current liabilities | 1,432.3 | 1,405.1 | |||||||
Total liabilities | 2,386.3 | 2,358.2 | |||||||
Shareholders’ equity: | |||||||||
Common stock: | |||||||||
Authorized – 250.0 shares, $1 par value per share (104.7 and 104.5 shares issued, respectively) | |||||||||
Outstanding – 90.0 shares and 89.5 shares, respectively | 90.0 | 89.5 | |||||||
Retained earnings | 1,727.2 | 1,696.7 | |||||||
Total accumulated other comprehensive loss | (395.8 | ) | (424.1 | ) | |||||
Total ITT Corporation shareholders' equity | 1,421.4 | 1,362.1 | |||||||
Noncontrolling interests | 1.5 | 3.3 | |||||||
Total shareholders’ equity | 1,422.9 | 1,365.4 | |||||||
Total liabilities and shareholders’ equity | $ | 3,809.2 | $ | 3,723.6 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Operating Activities | |||||||
Net income | $ | 37.3 | $ | 42.0 | |||
Less: (Loss) income from discontinued operations | (0.3 | ) | 3.4 | ||||
Less: (Loss) attributable to noncontrolling interests | (0.1 | ) | (0.1 | ) | |||
Income from continuing operations attributable to ITT Corporation | 37.7 | 38.7 | |||||
Adjustments to income from continuing operations: | |||||||
Depreciation and amortization | 25.3 | 20.7 | |||||
Stock-based compensation | 2.9 | 3.1 | |||||
Asbestos-related costs, net | 12.8 | 15.4 | |||||
Asbestos-related payments, net | (4.3 | ) | (3.9 | ) | |||
Changes in assets and liabilities: | |||||||
Change in receivables | (21.0 | ) | (56.7 | ) | |||
Change in inventories | (4.0 | ) | 3.6 | ||||
Change in accounts payable | (14.8 | ) | (0.5 | ) | |||
Change in accrued expenses | (28.8 | ) | (21.3 | ) | |||
Change in accrued and deferred income taxes | 3.4 | 17.2 | |||||
Other, net | (3.5 | ) | (8.1 | ) | |||
Net Cash – Operating activities | 5.7 | 8.2 | |||||
Investing Activities | |||||||
Capital expenditures | (21.0 | ) | (30.2 | ) | |||
Acquisitions, net of cash acquired | (0.2 | ) | — | ||||
Purchases of investments | (40.0 | ) | (15.3 | ) | |||
Maturities of investments | 36.3 | 5.3 | |||||
Other, net | 0.1 | 0.2 | |||||
Net Cash – Investing activities | (24.8 | ) | (40.0 | ) | |||
Financing Activities | |||||||
Commercial paper, net borrowings | 28.5 | 113.5 | |||||
Short-term revolving loans, borrowings | 27.7 | — | |||||
Short-term revolving loans, repayments | (27.7 | ) | — | ||||
Repurchase of common stock | (6.9 | ) | (82.8 | ) | |||
Proceeds from issuance of common stock | 6.1 | 2.0 | |||||
Dividends paid | (11.4 | ) | (0.3 | ) | |||
Excess tax benefit from equity compensation activity | 3.0 | 1.8 | |||||
Other, net | (2.4 | ) | (0.2 | ) | |||
Net Cash – Financing activities | 16.9 | 34.0 | |||||
Exchange rate effects on cash and cash equivalents | 9.9 | (15.8 | ) | ||||
Net Cash – Operating activities of discontinued operations | 7.5 | (0.3 | ) | ||||
Net change in cash and cash equivalents | 15.2 | (13.9 | ) | ||||
Cash and cash equivalents – beginning of year | 415.7 | 584.0 | |||||
Cash and cash equivalents – end of period | $ | 430.9 | $ | 570.1 | |||
Supplemental Disclosures of Cash Flow Information | |||||||
Cash paid during the year for: | |||||||
Interest | $ | 1.4 | $ | — | |||
Income taxes, net of refunds received | $ | 5.0 | $ | (1.0 | ) |
For the Three Months Ended March 31 | 2016 | 2015 | ||||||
Common Stock | ||||||||
Common stock, beginning balance | $ | 89.5 | $ | 91.0 | ||||
Activity from stock incentive plans | 0.7 | 0.3 | ||||||
Share repurchases | (0.2 | ) | (2.1 | ) | ||||
Common stock, ending balance | 90.0 | 89.2 | ||||||
Retained Earnings | ||||||||
Retained earnings, beginning balance | 1,696.7 | 1,445.1 | ||||||
Net income attributable to ITT Corporation | 37.4 | 42.1 | ||||||
Dividends declared | (11.3 | ) | (10.5 | ) | ||||
Activity from stock incentive plans | 11.1 | 6.5 | ||||||
Share repurchases | (6.7 | ) | (81.5 | ) | ||||
Retained earnings, ending balance | 1,727.2 | 1,401.7 | ||||||
Accumulated Other Comprehensive Loss | ||||||||
Postretirement benefit plans, beginning balance | (153.7 | ) | (144.2 | ) | ||||
Net change in postretirement benefit plans | 1.1 | 0.5 | ||||||
Postretirement benefit plans, ending balance | (152.6 | ) | (143.7 | ) | ||||
Cumulative translation adjustment, beginning balance | (270.1 | ) | (176.7 | ) | ||||
Net cumulative translation adjustment | 27.2 | (60.9 | ) | |||||
Cumulative translation adjustment, ending balance | (242.9 | ) | (237.6 | ) | ||||
Unrealized loss on investment securities, beginning balance | (0.3 | ) | (0.3 | ) | ||||
Unrealized loss on investment securities, ending balance | (0.3 | ) | (0.3 | ) | ||||
Total accumulated other comprehensive loss | (395.8 | ) | (381.6 | ) | ||||
Noncontrolling interests | ||||||||
Noncontrolling interests, beginning balance | 3.3 | 5.4 | ||||||
Loss attributable to noncontrolling interests | (0.1 | ) | (0.1 | ) | ||||
Dividend to noncontrolling interest shareholders | (1.9 | ) | — | |||||
Other | 0.2 | — | ||||||
Noncontrolling interests, ending balance | 1.5 | 5.3 | ||||||
Total Shareholders' Equity | ||||||||
Total shareholders' equity, beginning balance | 1,365.4 | 1,220.3 | ||||||
Net change in common stock | 0.5 | (1.8 | ) | |||||
Net change in retained earnings | 30.5 | (43.4 | ) | |||||
Net change in accumulated other comprehensive loss | 28.3 | (60.4 | ) | |||||
Net change in noncontrolling interests | (1.8 | ) | (0.1 | ) | ||||
Total shareholders' equity, ending balance | $ | 1,422.9 | $ | 1,114.6 |
• | Excess tax benefits and deficiencies will no longer be recognized as a change in additional paid-in-capital in the equity section of the balance, instead they are to be recognized in the income statement as a tax expense or benefit. In the statement of cash flows, excess tax benefits and deficiencies will no longer be classified as a financing activity, instead they will be classified as an operating activity. |
• | Entities will have the option to continue to reduce share-based compensation expense during the vesting period of outstanding awards for estimated future employee forfeitures or they may elect to recognize the impact of forfeitures as they actually occur. |
• | The ASU also provides new guidance to other areas of the standard including minimum statutory tax withholding rules and the calculation of diluted common shares outstanding. |
Revenue | Operating Income (Loss) | Operating Margin | |||||||||||||||||||
Three Months Ended March 31 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Industrial Process | $ | 208.8 | $ | 255.6 | $ | 9.0 | $ | 20.4 | 4.3 | % | 8.0 | % | |||||||||
Motion Technologies | 257.0 | 191.2 | 50.7 | 41.0 | 19.7 | % | 21.4 | % | |||||||||||||
Interconnect Solutions | 72.4 | 77.5 | 2.0 | 4.8 | 2.8 | % | 6.2 | % | |||||||||||||
Control Technologies | 71.9 | 65.8 | 10.4 | 14.3 | 14.5 | % | 21.7 | % | |||||||||||||
Total segment results | 610.1 | 590.1 | 72.1 | 80.5 | 11.8 | % | 13.7 | % | |||||||||||||
Asbestos-related costs, net | — | — | (12.8 | ) | (15.4 | ) | — | — | |||||||||||||
Eliminations / Other corporate costs | (1.0 | ) | (1.4 | ) | (8.3 | ) | (7.2 | ) | — | — | |||||||||||
Total Eliminations / Corporate and Other costs | (1.0 | ) | (1.4 | ) | (21.1 | ) | (22.6 | ) | — | — | |||||||||||
Total | $ | 609.1 | $ | 588.7 | $ | 51.0 | $ | 57.9 | 8.4 | % | 9.8 | % |
Total Assets | Capital Expenditures | Depreciation & Amortization | |||||||||||||||||||||
Three Months Ended March 31 | 2016 | 2015(a) | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Industrial Process | $ | 1,079.4 | $ | 1,097.5 | $ | 3.5 | $ | 6.2 | $ | 7.2 | $ | 7.6 | |||||||||||
Motion Technologies | 830.7 | 779.8 | 14.2 | 13.3 | 10.1 | 6.9 | |||||||||||||||||
Interconnect Solutions | 312.3 | 303.2 | 1.8 | 7.1 | 3.0 | 2.3 | |||||||||||||||||
Control Technologies | 378.7 | 370.6 | 1.4 | 2.4 | 3.4 | 2.5 | |||||||||||||||||
Corporate and Other | 1,208.1 | 1,172.5 | 0.1 | 1.2 | 1.6 | 1.4 | |||||||||||||||||
Total | $ | 3,809.2 | $ | 3,723.6 | $ | 21.0 | $ | 30.2 | $ | 25.3 | $ | 20.7 |
(a) | Amounts reflect balances as of December 31, 2015. |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Severance costs | $ | 5.1 | $ | 8.9 | |||
Asset write-offs | 0.2 | — | |||||
Other restructuring costs | 0.2 | 0.4 | |||||
Total restructuring costs | $ | 5.5 | $ | 9.3 | |||
By segment: | |||||||
Industrial Process | $ | 3.2 | $ | 8.9 | |||
Motion Technologies | 1.4 | — | |||||
Interconnect Solutions | — | (0.2 | ) | ||||
Control Technologies | 0.9 | 0.5 | |||||
Corporate and Other | — | 0.1 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Restructuring accruals - beginning balance | $ | 20.0 | $ | 21.9 | |||
Restructuring costs | 5.5 | 9.3 | |||||
Cash payments | (6.5 | ) | (6.6 | ) | |||
Asset write-offs | (0.2 | ) | — | ||||
Foreign exchange translation and other | (0.1 | ) | (0.4 | ) | |||
Restructuring accrual - ending balance | $ | 18.7 | $ | 24.2 | |||
By accrual type: | |||||||
Severance accrual | $ | 18.4 | $ | 22.4 | |||
Facility carrying and other costs accrual | 0.3 | 1.8 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Restructuring accruals - beginning balance | $ | 4.9 | $ | — | |||
Restructuring costs | 3.2 | 8.9 | |||||
Cash payments | (3.3 | ) | (1.0 | ) | |||
Asset write-offs | (0.2 | ) | — | ||||
Restructuring accruals - ending balance | $ | 4.6 | $ | 7.9 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Restructuring accruals - beginning balance | $ | 9.4 | $ | 17.1 | |||
Restructuring costs | — | (0.2 | ) | ||||
Cash payments | (2.6 | ) | (3.4 | ) | |||
Foreign exchange translation | — | (0.2 | ) | ||||
Restructuring accruals - ending balance | $ | 6.8 | $ | 13.3 |
For the Three Months Ended March 31 | 2016 | 2015 | |||
Basic weighted average common shares outstanding | 89.6 | 90.6 | |||
Add: Dilutive impact of outstanding equity awards | 0.9 | 1.0 | |||
Diluted weighted average common shares outstanding | 90.5 | 91.6 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Anti-dilutive stock options | 0.6 | 0.3 | |||||
Average exercise price | $ | 39.74 | $ | 42.90 | |||
Year(s) of expiration | 2024 - 2026 | 2024 - 2025 |
March 31, 2016 | December 31, 2015 | ||||||||||
Trade accounts receivable | $ | 587.0 | $ | 554.0 | |||||||
Notes receivable | 3.0 | 3.9 | |||||||||
Other | 33.5 | 43.1 | |||||||||
Receivables, gross | 623.5 | 601.0 | |||||||||
Less: Allowance for doubtful accounts | (16.5 | ) | (16.1 | ) | |||||||
Receivables, net | $ | 607.0 | $ | 584.9 |
March 31, 2016 | December 31, 2015 | ||||||||||
Finished goods | $ | 46.8 | $ | 60.9 | |||||||
Work in process | 63.5 | 56.0 | |||||||||
Raw materials | 170.9 | 162.9 | |||||||||
Inventoried costs related to long-term contracts | 47.2 | 43.0 | |||||||||
Total inventory before progress payments | 328.4 | 322.8 | |||||||||
Less: Progress payments | (27.1 | ) | (30.1 | ) | |||||||
Inventories, net | $ | 301.3 | $ | 292.7 |
March 31, 2016 | December 31, 2015 | ||||||||||
Asbestos-related assets | $ | 74.5 | $ | 74.5 | |||||||
Short-term investments | 68.5 | 64.9 | |||||||||
Prepaid income taxes | 30.9 | 14.3 | |||||||||
Other | 53.1 | 50.7 | |||||||||
Other current assets | $ | 227.0 | $ | 204.4 | |||||||
Other employee benefit-related assets | $ | 93.9 | $ | 92.9 | |||||||
Environmental-related assets(a) | 34.2 | 10.8 | |||||||||
Capitalized software costs | 28.5 | 28.2 | |||||||||
Other | 20.7 | 21.4 | |||||||||
Other non-current assets | $ | 177.3 | $ | 153.3 |
(a) | Environmental-related assets increased $23.4 primarily related to a settlement agreement and establishment of a Qualified Settlement Fund (QSF), which can be drawn upon to pay certain future environmental expenses associated with environmental remediation sites covered under the agreement. See Note 17, Commitments and Contingencies, to the Consolidated Condensed Financial Statements for further information on environmental-related matters. |
March 31, 2016 | December 31, 2015 | ||||||||||
Land and improvements | $ | 26.0 | $ | 25.4 | |||||||
Machinery and equipment | 941.2 | 909.3 | |||||||||
Buildings and improvements | 244.5 | 242.0 | |||||||||
Furniture, fixtures and office equipment | 69.4 | 66.3 | |||||||||
Construction work in progress | 31.0 | 42.3 | |||||||||
Other | 6.0 | 6.7 | |||||||||
Plant, property and equipment, gross | 1,318.1 | 1,292.0 | |||||||||
Less: Accumulated depreciation | (875.1 | ) | (848.5 | ) | |||||||
Plant, property and equipment, net | $ | 443.0 | $ | 443.5 |
Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Total | |||||||||||||||||||||||
Goodwill - December 31, 2015 | $ | 312.6 | $ | 201.0 | $ | 69.0 | $ | 195.7 | $ | 778.3 | |||||||||||||||||
Adjustments to purchase price allocations | — | 0.8 | — | 0.4 | 1.2 | ||||||||||||||||||||||
Foreign currency | 5.6 | 1.8 | 0.7 | — | 8.1 | ||||||||||||||||||||||
Goodwill - March 31, 2016 | $ | 318.2 | $ | 203.6 | $ | 69.7 | $ | 196.1 | $ | 787.6 |
March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Intangibles | Gross Carrying Amount | Accumulated Amortization | Net Intangibles | ||||||||||||||||||||||||||||||
Customer relationships | $ | 158.1 | $ | (49.2 | ) | $ | 108.9 | $ | 157.4 | $ | (45.3 | ) | $ | 112.1 | |||||||||||||||||||||
Proprietary technology | 53.6 | (14.0 | ) | 39.6 | 54.9 | (12.7 | ) | 42.2 | |||||||||||||||||||||||||||
Patents and other | 8.8 | (7.4 | ) | 1.4 | 8.6 | (6.6 | ) | 2.0 | |||||||||||||||||||||||||||
Finite-lived intangible total | 220.5 | (70.6 | ) | 149.9 | 220.9 | (64.6 | ) | 156.3 | |||||||||||||||||||||||||||
Indefinite-lived intangibles | 31.3 | — | 31.3 | 30.9 | — | 30.9 | |||||||||||||||||||||||||||||
Other intangible assets | $ | 251.8 | $ | (70.6 | ) | $ | 181.2 | $ | 251.8 | $ | (64.6 | ) | $ | 187.2 |
March 31, 2016 | December 31, 2015 | ||||||||||
Compensation and other employee-related benefits | $ | 122.6 | $ | 138.6 | |||||||
Asbestos-related liabilities | 88.1 | 88.0 | |||||||||
Customer-related liabilities | 38.9 | 38.0 | |||||||||
Accrued income taxes and other tax-related liabilities | 42.2 | 30.9 | |||||||||
Environmental liabilities and other legal matters | 25.0 | 24.0 | |||||||||
Accrued warranty costs | 21.2 | 21.7 | |||||||||
Other accrued liabilities | 47.3 | 51.5 | |||||||||
Accrued liabilities | $ | 385.3 | $ | 392.7 | |||||||
Deferred income taxes and other tax-related accruals | $ | 44.2 | $ | 44.5 | |||||||
Environmental liabilities | 68.2 | 72.0 | |||||||||
Compensation and other employee-related benefits | 37.9 | 35.6 | |||||||||
Other(a) | 64.4 | 37.8 | |||||||||
Other non-current liabilities | $ | 214.7 | $ | 189.9 |
(a) | Increase primarily driven by deferred income associated with an insurance settlement agreement and establishment of a QSF related to our environmental liability. The deferred income will be reduced as actual costs for remediation sites covered under the agreement are incurred. See Note 17, Commitments and Contingencies, to the Consolidated Condensed Financial Statements for further information. |
March 31, 2016 | December 31, 2015 | ||||||||||
Commercial paper | $ | 123.0 | $ | 94.5 | |||||||
Short-term loans | 151.1 | 150.0 | |||||||||
Current maturities of long-term debt and capital leases | 1.1 | 1.2 | |||||||||
Short-term loans and current maturities of long-term debt | 275.2 | 245.7 | |||||||||
Long-term debt and capital leases | 2.7 | 2.8 | |||||||||
Total debt and capital leases | $ | 277.9 | $ | 248.5 |
2016 | 2015 | ||||||||||||||||||||||||||||||||||
Three Months Ended March 31 | Pension | Other Benefits | Total | Pension | Other Benefits | Total | |||||||||||||||||||||||||||||
Service cost | $ | 1.2 | $ | 0.2 | $ | 1.4 | $ | 1.3 | $ | 0.2 | $ | 1.5 | |||||||||||||||||||||||
Interest cost | 3.4 | 1.2 | 4.6 | 3.6 | 1.2 | 4.8 | |||||||||||||||||||||||||||||
Expected return on plan assets | (5.0 | ) | (0.2 | ) | (5.2 | ) | (5.1 | ) | (0.2 | ) | (5.3 | ) | |||||||||||||||||||||||
Amortization of prior service cost (benefit) | 0.2 | (1.6 | ) | (1.4 | ) | 0.2 | (2.7 | ) | (2.5 | ) | |||||||||||||||||||||||||
Amortization of net actuarial loss | 1.9 | 1.2 | 3.1 | 2.1 | 1.1 | 3.2 | |||||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 1.7 | $ | 0.8 | $ | 2.5 | $ | 2.1 | $ | (0.4 | ) | $ | 1.7 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Equity based awards | $ | 2.9 | $ | 3.1 | |||
Liability-based awards | 0.5 | 0.2 | |||||
Total share-based compensation expense | $ | 3.4 | $ | 3.3 |
# of Awards Granted | Grant Date Fair Value | ||||
Non-qualified stock options (NQOs) | 0.4 | $ | 9.16 | ||
Restricted stock units (RSUs) | 0.3 | $ | 33.01 | ||
Performance stock units (PSUs) | 0.2 | $ | 33.27 |
Dividend yield | 1.5% |
Expected volatility | 32.2% |
Expected life | 6.0 years |
Risk-free rates | 1.5% |
Grant date fair value | $9.16 |
For the Three Months Ended March 31 (in thousands) | 2016 | |
Pending claims – Beginning | 37 | |
New claims | 1 | |
Dismissals | (2 | ) |
Pending claims – Ending | 36 |
Liability | Asset | Net | |||||||||
Balance as of December 31, 2015 | $ | 1,042.8 | $ | 412.0 | $ | 630.8 | |||||
Asbestos provision | 17.8 | 2.4 | 15.4 | ||||||||
Settlement agreement | — | 2.6 | (2.6 | ) | |||||||
Net cash activity | (15.5 | ) | (11.2 | ) | (4.3 | ) | |||||
Balance as of March 31, 2016 | $ | 1,045.1 | $ | 405.8 | $ | 639.3 | |||||
Current portion | $ | 88.1 | $ | 74.5 | |||||||
Noncurrent portion | $ | 957.0 | $ | 331.3 |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Environmental liability - beginning balance | $ | 82.6 | $ | 89.9 | |||
Change in estimates for pre-existing accruals | |||||||
Continuing operations | 0.7 | 0.2 | |||||
Discontinued operations | 0.5 | — | |||||
Net cash activity | (5.1 | ) | (4.4 | ) | |||
Foreign currency | 0.1 | (0.3 | ) | ||||
Environmental liability - ending balance | $ | 78.8 | $ | 85.4 |
Cash | $ | 8.5 | |
Receivables | 31.6 | ||
Inventory | 35.0 | ||
Plant, property and equipment | 22.8 | ||
Goodwill | 162.5 | ||
Other intangible assets | 87.0 | ||
Other assets | 3.3 | ||
Accounts payable and accrued liabilities | (21.2 | ) | |
Postretirement liabilities | (14.6 | ) | |
Other liabilities | (8.1 | ) | |
Net assets acquired | $ | 306.8 |
For the Three Months Ended March 31 | 2016 | 2015 | Change | |||||
Revenue | $ | 609.1 | $ | 588.7 | 3.5 | % | ||
Gross profit | 195.3 | 199.0 | (1.9 | %) | ||||
Gross margin | 32.1 | % | 33.8 | % | (170 | )bp | ||
Operating expenses | 144.3 | 141.1 | 2.3 | % | ||||
Expense to revenue ratio | 23.7 | % | 24.0 | % | (30 | )bp | ||
Operating income | 51.0 | 57.9 | (11.9 | %) | ||||
Operating margin | 8.4 | % | 9.8 | % | (140 | )bp | ||
Interest and non-operating expense (income), net | 1.7 | 1.2 | 41.7 | % | ||||
Income tax expense | 11.7 | 18.1 | (35.4 | %) | ||||
Effective tax rate | 23.7 | % | 31.9 | % | (820 | )bp | ||
Income from continuing operations attributable to ITT Corporation | 37.7 | 38.7 | (2.6 | %) | ||||
Income (loss) from discontinued operations, net of tax | (0.3 | ) | 3.4 | (a) | ||||
Net income attributable to ITT Corporation | 37.4 | 42.1 | (11.2 | %) |
(a) | The percentage change was intentionally excluded as the resulting figure is not considered meaningful. |
For the Three Months Ended March 31 | 2016 | 2015 | Change | Organic Revenue Growth(a) | |||||||||
Industrial Process | $ | 208.8 | $ | 255.6 | (18.3 | )% | (14.5 | )% | |||||
Motion Technologies | 257.0 | 191.2 | 34.4 | % | 14.2 | % | |||||||
Interconnect Solutions | 72.4 | 77.5 | (6.6 | )% | (6.1 | )% | |||||||
Control Technologies | 71.9 | 65.8 | 9.3 | % | (1.1 | )% | |||||||
Eliminations | (1.0 | ) | (1.4 | ) | (28.6 | )% | — | ||||||
Revenue | $ | 609.1 | $ | 588.7 | 3.5 | % | (2.5 | )% |
(a) | See the section titled "Key Performance Indicators and Non-GAAP Measures" for a definition and reconciliation of organic revenue. |
For the Three Months Ended March 31 | 2016 | 2015 | Change | |||||||
Sales and marketing expenses | $ | 43.3 | $ | 47.3 | (8.5 | )% | ||||
General and administrative expenses | 69.0 | 60.1 | 14.8 | % | ||||||
Research and development expenses | 19.2 | 18.3 | 4.9 | % | ||||||
Asbestos-related costs, net | 12.8 | 15.4 | (16.9 | )% | ||||||
Total operating expenses | $ | 144.3 | $ | 141.1 | 2.3 | % | ||||
Total Operating Expenses By Segment: | ||||||||||
Industrial Process | $ | 54.1 | $ | 64.1 | (15.6 | )% | ||||
Motion Technologies | 31.9 | 19.6 | 62.8 | % | ||||||
Interconnect Solutions | 20.0 | 20.5 | (2.4 | )% | ||||||
Control Technologies | 17.1 | 14.1 | 21.3 | % | ||||||
Corporate & Other | 21.2 | 22.8 | (7.0 | )% |
For the Three Months Ended March 31 | 2016 | 2015 | Change | |||||||
Industrial Process | $ | 9.0 | $ | 20.4 | (55.9 | )% | ||||
Motion Technologies | 50.7 | 41.0 | 23.7 | % | ||||||
Interconnect Solutions | 2.0 | 4.8 | (58.3 | )% | ||||||
Control Technologies | 10.4 | 14.3 | (27.3 | )% | ||||||
Segment operating income | 72.1 | 80.5 | (10.4 | )% | ||||||
Asbestos-related costs, net | (12.8 | ) | (15.4 | ) | (16.9 | )% | ||||
Other corporate costs | (8.3 | ) | (7.2 | ) | (15.3 | )% | ||||
Total corporate and other costs | (21.1 | ) | (22.6 | ) | 6.6 | % | ||||
Total operating income | $ | 51.0 | $ | 57.9 | (11.9 | )% | ||||
Operating margin: | ||||||||||
Industrial Process | 4.3 | % | 8.0 | % | (370 | )bp | ||||
Motion Technologies | 19.7 | % | 21.4 | % | (170 | )bp | ||||
Interconnect Solutions | 2.8 | % | 6.2 | % | (340 | )bp | ||||
Control Technologies | 14.5 | % | 21.7 | % | (720 | )bp | ||||
Segment operating margin | 11.8 | % | 13.7 | % | (190 | )bp | ||||
Consolidated operating margin | 8.4 | % | 9.8 | % | (140 | )bp |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Operating activities | $ | 5.7 | $ | 8.2 | |||
Investing activities | (24.8 | ) | (40.0 | ) | |||
Financing activities | 16.9 | 34.0 | |||||
Foreign exchange | 9.9 | (15.8 | ) | ||||
Total net cash flow from continuing operations | 7.7 | (13.6 | ) | ||||
Net cash from discontinued operations | 7.5 | (0.3 | ) | ||||
Net change in cash and cash equivalents | $ | 15.2 | $ | (13.9 | ) |
n | "organic revenue" and "organic orders" are defined as revenue and orders, excluding the impacts of foreign currency fluctuations and acquisitions and divestitures. Divestitures include sales of portions of our business that did not meet the criteria for presentation as a discontinued operation. The period-over-period change resulting from foreign currency fluctuations is estimated using a fixed exchange rate for both the current and prior periods. Reconciliations of organic revenue for the three months ended March 31, 2016 are provided below. |
Three Months Ended March 31, 2016 | Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Eliminations | Total ITT | ||||||||||||||||||||||||
2016 Revenue | $ | 208.8 | $ | 257.0 | $ | 72.4 | $ | 71.9 | $ | (1.0 | ) | $ | 609.1 | |||||||||||||||||
(Acquisitions)/divestitures, net | — | (42.0 | ) | — | (6.8 | ) | — | (48.8 | ) | |||||||||||||||||||||
Foreign currency translation | 9.8 | 3.4 | 0.4 | — | 0.1 | 13.7 | ||||||||||||||||||||||||
2016 Organic revenue | $ | 218.6 | $ | 218.4 | $ | 72.8 | $ | 65.1 | $ | (0.9 | ) | $ | 574.0 | |||||||||||||||||
Organic growth (decline) | (14.5 | )% | 14.2 | % | (6.1 | )% | (1.1 | )% | (2.5 | )% |
Three Months Ended March 31, 2016 | Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Eliminations | Total ITT | ||||||||||||||||||||||||
2016 Orders | $ | 188.8 | $ | 265.4 | $ | 78.1 | $ | 92.4 | $ | (1.2 | ) | $ | 623.5 | |||||||||||||||||
(Acquisitions)/divestitures, net | — | (41.6 | ) | — | (11.3 | ) | — | (52.9 | ) | |||||||||||||||||||||
Foreign currency translation | 11.4 | 3.7 | 0.5 | — | 0.1 | 15.7 | ||||||||||||||||||||||||
2016 Organic orders | $ | 200.2 | $ | 227.5 | $ | 78.6 | $ | 81.1 | $ | (1.1 | ) | $ | 586.3 | |||||||||||||||||
Organic growth (decline) | (23.6 | )% | 14.8 | % | (5.3 | )% | 23.4 | % | (3.5 | )% |
n | "adjusted segment operating income" is defined as operating income, adjusted to exclude special items that include, but are not limited to, restructuring and realignment costs, certain asset impairment charges, repositioning costs, certain acquisition-related expenses, and other unusual or infrequent operating items. Special items represent significant charges or credits that impact current results, which management views as unrelated to the Company's ongoing operations and performance. |
Three Months Ended March 31, 2016 | Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Total Segment | |||||||||||||||
Segment operating income | $ | 9.0 | $ | 50.7 | $ | 2.0 | $ | 10.4 | $ | 72.1 | ||||||||||
Restructuring costs | 3.2 | 1.4 | — | 0.9 | 5.5 | |||||||||||||||
Other unusual or infrequent items(a) | — | 1.0 | — | 2.4 | 3.4 | |||||||||||||||
Adjusted segment operating income | $ | 12.2 | $ | 53.1 | $ | 2.0 | $ | 13.7 | $ | 81.0 |
Three Months Ended March 31, 2015 | Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Total Segment | |||||||||||||||
Segment operating income | $ | 20.4 | $ | 41.0 | $ | 4.8 | $ | 14.3 | $ | 80.5 | ||||||||||
Restructuring costs | 8.9 | — | (0.2 | ) | 0.5 | 9.2 | ||||||||||||||
Adjusted segment operating income | $ | 29.3 | $ | 41.0 | $ | 4.6 | $ | 14.8 | $ | 89.7 |
(a) | The adjustments for unusual or infrequent items during 2016 primarily reflect acquisition-related costs. |
n | "adjusted income from continuing operations" and "adjusted income from continuing operations per diluted share" are defined as income from continuing operations attributable to ITT Corporation and income from continuing operations attributable to ITT Corporation per diluted share, adjusted to exclude special items that include, but are not limited to, asbestos-related costs, repositioning costs, restructuring and realignment costs, certain asset impairment charges, certain acquisition-related expenses, income tax settlements or adjustments, and other unusual or infrequent non-operating items. Special items represent significant charges or credits, on an after-tax basis, that impact current results, which management views as unrelated to the Company's ongoing operations and performance. |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Income from continuing operations attributable to ITT Corporation | $ | 37.7 | $ | 38.7 | |||
Net asbestos-related costs, net of tax | 8.1 | 9.7 | |||||
Restructuring costs, net of tax | 4.1 | 8.7 | |||||
Tax-related special items(a) | 1.3 | 2.7 | |||||
Other special items, net of tax(b) | 2.1 | 0.1 | |||||
Adjusted income from continuing operations | $ | 53.3 | $ | 59.9 | |||
Income from continuing operations attributable to ITT Corporation per diluted share | $ | 0.42 | $ | 0.42 | |||
Adjusted income from continuing operations per diluted share | $ | 0.59 | $ | 0.65 |
(a) | Tax-related special items for both the three months ended March 31, 2016 and 2015 primarily relate to deemed distributions of foreign earnings. |
(b) | Other special items primarily relates to one-time realignment and integration costs associated with our 2015 acquisitions of Hartzell and Wolverine. |
n | "adjusted free cash flow" is defined as net cash provided by operating activities less capital expenditures, adjusted for cash payments for restructuring and realignment actions, repositioning costs, net asbestos cash flows and other significant items that impact current results which management views as unrelated to the Company's ongoing operations and performance. Due to other financial obligations and commitments, including asbestos, the entire free cash flow may not be available for discretionary purposes. A reconciliation of adjusted free cash flow is provided below. |
For the Three Months Ended March 31 | 2016 | 2015 | |||||
Net cash provided by operating activities | $ | 5.7 | $ | 8.2 | |||
Capital expenditures(c) | (21.0 | ) | (30.0 | ) | |||
Restructuring cash payments | 6.5 | 6.6 | |||||
Net asbestos cash flows | 4.3 | 3.9 | |||||
Repositioning and other cash payments | — | 2.2 | |||||
Adjusted free cash flow | $ | (4.5 | ) | $ | (9.1 | ) |
(c) | Capital expenditures for the three months ended March 31, 2015 reflect a reduction of $0.2 associated with repositioning activities related to the 2011 spin-off. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE(1) | TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS(2) | MAXIMUM DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS(2) | |||||||||||
1/1/2016 - 1/31/2016 | — | — | — | $ | 240.7 | ||||||||||
2/1/2016 - 2/29/2016 | — | — | — | $ | 240.7 | ||||||||||
3/1/2016 - 3/31/2016 | 0.2 | $ | 37.20 | — | $ | 240.7 |
(1) | Average price paid per share is calculated on a settlement basis and includes commissions. |
(2) | On October 27, 2006, our Board of Directors approved a three-year $1 billion share repurchase program (2006 Share Repurchase Program). On December 16, 2008, our Board of Directors modified the provisions of the 2006 Share Repurchase Program to replace the original three-year term with an indefinite term. As of March 31, 2016, we had repurchased 18.4 shares for $759.3, including commissions, under the 2006 Share Repurchase Program. The program is consistent with our capital allocation process, which has centered on those investments necessary to grow our businesses organically and through acquisitions, while also providing cash returns to shareholders. Our strategy for cash flow utilization is to invest in our business, execute strategic acquisitions, pay dividends and repurchase common stock. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
ITT Corporation | ||
(Registrant) | ||
By: | /S/ STEVEN C. GIULIANO | |
Steven C. Giuliano | ||
Vice President and Chief Accounting Officer | ||
(Principal accounting officer) |
EXHIBIT NUMBER | DESCRIPTION | LOCATION | ||
(10.1)* | ITT Corporation Form of 2016 Performance Unit Award Agreement (Executive Officer) | Filed herewith. | ||
(10.2)* | ITT Corporation Form of 2016 Non-Qualified Stock Option Award Agreement (Executive Officer) | Filed herewith. | ||
(10.3)* | ITT Corporation Form of 2016 Restricted Stock Unit Agreement (Stock Settled) | Filed herewith. | ||
(31.1) | Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | ||
(31.2) | Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. | ||
(32.1) | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. | ||
(32.2) | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. | ||
(101) | The following materials from ITT Corporation’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Condensed Income Statements, (ii) Consolidated Condensed Statements of Comprehensive Income, (iii) Consolidated Condensed Balance Sheets, (iv) Consolidated Condensed Statements of Cash Flows, (v) Consolidated Condensed Statements of Changes in Shareholders' Equity, and (vi) Notes to Consolidated Condensed Financial Statements | Submitted electronically with this report. | ||
1. | Grant of Award and Performance Period. In accordance with, and subject to, the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Participant this performance unit award (the “Award”). A performance unit corresponds to the right to receive one Share, subject to the terms of the Award. The target number of performance units subject to this Award is _______________ (the “Target Units”). The actual number of performance units that will be settled under this Award will depend upon the achievement of the threshold performance goal described in Section 2 of this Agreement during the Performance Period, which for this Award commences January 1, 2016 and ends December 31, 2018. |
2. | Terms and Conditions. It is understood and agreed that this Award is subject to the following terms and conditions: |
(a) | Threshold Condition to Payout of Awards. Payment under this Award shall not be due and payable to the Grantee unless the Company earns a level of “Adjusted EBITDA” (as defined below) in any rolling consecutive four calendar quarter period during the Performance Period that exceeds $199 million (the “Threshold”). For purposes of this Agreement, “Adjusted EBITDA” means net income before interest, taxes, depreciation and amortization, adjusted to exclude the impact of (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses. If the Threshold is achieved, then the number of performance units due and payable to the Participant hereunder shall be a number equal to the number of Target Units set forth above multiplied by two. In the event of an Acceleration Event that constitutes a change of ownership or control (as determined under Section 162 |
(b) | Additional Factors. For guidance to the Committee in determining the level of the Award that may be paid hereunder, the Committee will take into account the “Performance Unit Award Payout” and other terms and conditions set forth below, but the Committee is not obligated to apply these factors in determining the actual amount of Awards payable. The “Performance Unit Award Payout” shall be the sum of the TSR Unit Payout and the ROIC Unit Payout, each as described below. |
(i) | TSR Unit Payout. 50% of the Target Units shall be “TSR Target Units.” The performance units calculated with respect to the TSR Target Units shall be determined in accordance with the following formula: |
If Company’s TSR rank against the S&P 400 Capital Goods Index is | TSR Payout Factor (% of TSR Target Units) |
less than the 35th percentile | 0% |
at the 35th percentile | 50% |
at the 50th percentile | 100% |
at the 80th percentile or more | 200% |
The TSR Payout Factor is interpolated for actual results between the 35th percentile and the 80th percentile shown above. |
(ii) | ROIC Unit Payout. 50% of the Target Units shall be “ROIC Target Units.” The performance units calculated with respect to the ROIC Target Units shall be determined in accordance with the following formula: |
If Company’s ROIC rank against the ROIC Peer Group is | ROIC Payout Factor (% of ROIC Target Units) |
less than the 35th percentile | 0% |
at the 35th percentile | 50% |
at the 50th percentile | 100% |
at the 80th percentile or more | 200% |
The ROIC Payout Factor is interpolated for actual results between the 35th percentile and the 80th percentile shown above. |
(c) | Form and Timing of Payment of Award. Payment with respect to an earned Performance Unit Award shall be made (i) as soon as practicable (but not later than March 15th) in the calendar year following the close of the Performance Period, and (ii) in Shares in an amount equal to the Performance Unit Award Payout, as determined under this Section 2, in each case subject to subsections 2(e) and 2(f). |
(d) | Effect of Termination of Employment. Except as otherwise provided below (each provision of which is subject to the attainment of the Threshold and the Committee’s discretion), if the Participant’s employment with the Company or an Affiliate of the Company is terminated for any reason prior to the end of the Performance Period, any Award subject to this Agreement shall be immediately forfeited. |
(i) | Termination due to Death or Disability. If the Participant’s termination of employment is due to death or Disability (as defined below), the Award shall vest and will be payable at the time and in the form as provided in subsection |
(ii) | Termination due to Early Retirement. If the Participant’s termination of employment is due to Early Retirement (as defined below), then a prorated portion of the Award shall vest in accordance with the provisions of this subsection and will be payable at the time and in the form as provided in subsection 2(c) above. The prorated portion of the Award that vests due to termination of the Participant's employment due to Early Retirement shall be determined by multiplying (i) the Performance Unit Award Payout determined pursuant to subsection 2(b) above for the entire Performance Period, by (ii) a fraction, the numerator of which is the number of full months the Participant has been continually employed since the beginning of the Performance Period and the denominator of which is 36. For this purpose, full months of employment shall be based on monthly anniversaries of the commencement of the Performance Period. |
(iii) | Termination by the Company for Other than Cause. If the Participant’s employment is terminated by the Company (or an Affiliate of the Company, as the case may be) for other than Cause, a prorated portion of the Award shall vest in accordance with the provisions of this subsection and will be payable at the time and in the form as provided in subsection 2(c) above. The prorated portion of the Award that vests due to termination of the Participant's employment by the Company for other than cause shall be determined by multiplying (i) the Performance Unit Award Payout determined pursuant to subsection 2(b) above for the entire Performance Period, by (ii) a fraction, the numerator of which is the number of full months the Participant has been continually employed since the beginning of the Performance Period and the denominator of which is 36. For this purpose, full months of employment shall be based on monthly anniversaries of the commencement of the Performance Period. The term “Cause” shall mean “cause” as defined in any employment agreement then in effect between the Participant and the Company, or if not defined therein, or if there is no such agreement, the Participant’s (a) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty; (b) commission or conviction of any felony, or of any misdemeanor involving moral turpitude, or entry of a plea of guilty or nolo contendere to any felony or misdemeanor; (c) engagement in any activity that the Participant knows or should know could harm the business or reputation of the Company or an affiliate; (d) material failure to adhere to the Company’s or its subsidiaries’ or affiliates’ corporate codes, policies or procedures as in effect from time to time; (e) willful failure to perform the Participant’s assigned duties, repeated absenteeism or tardiness, insubordination, or the refusal or failure to comply with the directions or instructions of the Participant’s supervisor, as determined by the Company or an affiliate; (f) violation of any statutory, contractual, or common law duty or obligation to the Company or an affiliate, including, without limitation, the duty of loyalty; (g) the Participant’s violation of any of the applicable provisions of subsection 2(j) of this Agreement; or (h) material breach of any confidentiality or non-competition covenant entered into between the |
(iv) | Termination Due to Normal Retirement. |
(A) | After First 12 Months. If the Participant’s separation from service is due to Normal Retirement (as defined below), and the separation from service occurs at least twelve (12) months after the first day of the Performance Period, the Award shall vest and will be payable in the amount determined pursuant to subsection 2(b) at the time and in the form as provided in subsection 2(c) above. |
(B) | Within First 12 Months. If the Participant’s separation from service is due to Normal Retirement, and the separation from service occurs within the first twelve (12) months of the Performance Period, then a prorated portion of the Award shall vest in accordance with the provisions of this subsection and will be payable at the time and in the form as provided in subsection 2(c) above. The prorated portion of the Award that vests in accordance with the previous sentence shall be determined by multiplying (i) the Performance Unit Award Payout determined pursuant to subsection 2(b) above for the entire Performance Period, by (ii) a fraction, the numerator of which is the number of full months the Participant has been continually employed since the beginning of the Performance Period and the denominator of which is 12. For this purpose, full months of employment shall be based on monthly anniversaries of the commencement of the Performance Period. |
(v) | Early and Normal Retirement. For purposes of this Agreement, the term “Early Retirement” shall mean any termination of the Participant’s employment (other than a Normal Retirement) after the date the Participant attains age 55 and completes 10 or more years of Effective Service (as such term is defined in the ITT Retirement Savings Plan for Salaried Employees). The term “Normal Retirement” shall mean any termination of the Participant’s employment after (A) the date the Participant attains age 62 and completes 10 or more years of Effective Service (as such term is defined in the ITT Retirement Savings Plan for Salaried Employees) or, if earlier, (B) the date the Participant attains age 65. |
(vi) | Disability. For purposes of this Agreement, the term “Disability” shall mean the complete and permanent inability of the Participant to perform all of his or her duties under the terms of his or her employment, as determined by the Committee upon the basis of such evidence, including independent medical reports and data, as the Committee deems appropriate or necessary. |
(e) | Acceleration Event - Involuntary Termination of Employment Without Cause or Termination With Good Reason. |
(i) | Vesting. Notwithstanding anything in the Plan to the contrary other than subsection 2(f)(i) (but subject to attainment of the Threshold to the extent required as described above and the Committee’s discretion), if, during the Performance Period, the Participant’s employment is terminated on or within two (2) years after an Acceleration Event (A) by the Company (or an Affiliate, as the case may be) for other than Cause, as defined herein, and not because of the Participant’s Early or Normal Retirement, Disability, or death, or (B) by the Participant because of Good Reason, then the Award shall become fully vested and valued as provided below in this subsection 2(e) and shall be paid at the time specified in subsection 2(c). |
(ii) | Payment Amount. Notwithstanding any provisions of this Agreement to the contrary, the value of the Performance Unit Award Payout payable under this subsection 2(e) shall be equal to the greater of (A) the “most recent share price” multiplied by the sum of (I) 50% of the Target Units multiplied by the TSR Payout Factor for the “most recent performance period” and (II) 50% of the Target Units multiplied by the ROIC Payout Factor for the “most recent performance period” or (B) the “most recent share price” multiplied by the Target Units. For this purpose, “most recent share price” means the market price of a Share on the date of the Acceleration Event, and “most recent performance period” means the performance period with respect to a similar performance-based award of the Company that most recently ended before the termination of employment. |
(iii) | Good Reason. For this purpose, the term “Good Reason” shall mean (A) without the Participant’s express written consent and excluding for this purpose an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the Company or its affiliates within 30 days after receipt of notice thereof given by the Participant, (I) a reduction in the Participant’s annual base compensation (whether or not deferred), (II) the assignment to the Participant of any duties inconsistent in any material respect with the Participant’s position (including status, offices, titles and reporting requirements), authority, duties or responsibilities, or (III) any other action by the Company or its affiliates that results in a material diminution in such position, authority, duties or responsibilities; or (B) without the Participant’s express written consent, the Company’s requiring the Participant’s primary work location to be other than within twenty-five (25) miles of the location where the Participant was principally working immediately prior to the Acceleration Event; provided, that “Good Reason” shall cease to exist for an event on the 90th day following the later of its occurrence or the Participant’s knowledge thereof, unless the Participant has given the Company notice thereof prior to such date. |
(f) | Other Payments After an Acceleration Event. |
(i) | Going Private Transaction. If an Acceleration Event occurs that constitutes a change in control under Section 409A of the Code and any related regulations or other effective guidance promulgated thereunder (“Section 409A”) and, immediately following the Acceleration Event the common stock of the Company (or, if applicable, its successor) is not publicly traded, |
(ii) | Other Acceleration Event. If clause (i) above does not apply and a Performance Period ends after the occurrence of an Acceleration Event, then, notwithstanding any provisions of this Agreement to the contrary (except as provided in subsection 2(e), and subject to attainment of the Threshold to the extent required as described above and the Committee’s discretion), the Award shall be settled at the time provided in subsection 2(c) in the amount determined under clause (iii) below. |
(iii) | Amount. In the event of a payment under clause (i) or clause (ii), above, the value of the Performance Unit Award Payout payable at a time otherwise provided herein shall be equal to the greater of (A) the “most recent share price” multiplied by the sum of (I) 50% of the Target Units multiplied by the TSR Payout Factor for the “most recent performance period” and (II) 50% of the Target Units multiplied by the ROIC Payout Factor for the “most recent performance period” or (B) the “most recent share price” multiplied by the Target Units. For this purpose, “most recent share price” means the market price of a Share on the date of the Acceleration Event, and “most recent performance period” means the performance period with respect to a similar performance-based award of the Company that most recently ended before the Acceleration Event. |
(g) | Tax Withholding. Payments with respect to Awards under the Plan shall be subject to applicable tax withholding obligations as described in Article 15 of the Plan, or, if the Plan is amended, successor provisions. |
(h) | No Shareholder Rights. The Participant shall not be entitled to any rights or privileges of ownership of Shares with respect to this Award unless and until a Share is actually delivered to the Participant in settlement of this Award pursuant to this Agreement. |
(i) | Participant Bound by Plan and Rules. The Participant hereby acknowledges receipt of a copy of the Plan and this Agreement and agrees to be bound by the terms and provisions thereof. The Participant agrees to be bound by any rules and regulations for administering the Plan as may be adopted by the Committee prior to the settlement of the Award subject to this Agreement. The Committee shall be authorized to make all necessary interpretations concerning the provisions of this Agreement and the proper application of those provisions to particular fact patterns, including but not limited to the basis for the Participant’s termination of employment, and any such interpretation shall be final. |
(j) | Non-Competition, Non-Solicitation and Non-Disparagement. In consideration of the Company entering into this Agreement with the Participant, the Participant agrees as follows: |
(i) | During Participant’s employment with the Company (which, for purposes of this subsection 2(j) includes its subsidiaries), Participant will not, directly or |
(ii) | During Participant’s employment and for a period of twelve (12) months following the termination of Participant’s employment with the Company for any reason, Participant agrees that Participant will not within the Restricted Area, directly or indirectly, except with the Company’s prior written approval from an authorized officer, either as an employee, employer, consultant, agent, principal, partner, stockholder, member, corporate officer, director or in any other individual or representative capacity, engage or attempt to engage in any Competitive Activity relating to the Company’s business or products, or to its actual or demonstrably anticipated research or development. For the purposes of this subparagraph, “Competitive Activity” shall mean perform services for, have an interest in, be employed by, or do business with (including as a consultant), any person, firm, or corporation engaged in the same or a similar business as the Company’s within the Restricted Area. For purposes of this Agreement, “Restricted Area” shall mean, any area in which the Company has transacted business for the twelve (12) months prior to Participant’s termination of employment, which includes, but is not limited to, the state(s) in which Participant worked on behalf of the Company, the United States, Australia, Argentina, Brazil, Canada, Chile, China, Columbia, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Italy, Japan, Republic of Korea, Luxembourg, Mexico, Netherlands, Peru, Russia, Saudi Arabia, Singapore, Spain, Taiwan, Thailand, United Arab Emirates, United Kingdom, Venezuela and such other countries as the Company is now conducting and may expand its business from time to time. |
(iii) | Throughout the Participant’s term of employment with the Company and for a period of twelve (12) months following the Participant’s termination of employment with the Company for any reason, the Participant shall not, directly or indirectly, divert or attempt to divert or assist others in diverting any business of the Company including by soliciting, contacting or communicating with any customer or supplier of the Company with whom the Participant has direct or indirect contact or upon termination of employment has had direct or indirect contact during the twelve (12) month period immediately preceding the Participant’s date of termination with the Company. |
(iv) | During Participant’s employment and for a period of twelve (12) months following Participant’s termination of employment with the Company for any reason, the Participant shall not, directly or indirectly, hire, solicit, induce, attempt to induce or assist others in attempting to induce any employee of the Company with whom the Participant has worked or had material contact with, during the twelve (12) month period immediately preceding the termination of the Participant’s employment, to leave the employment of the Company or to accept employment or affiliation with (including as a consultant) any other company or firm of which the Participant becomes an employee, owner, partner or consultant. |
(v) | Participant agrees not to make or publish any maliciously defamatory statements about the Company, including any current, former or future managers or representatives. |
(vi) | Participant agrees that damages in the event of a breach by Participant of Participant’s obligations in this Agreement, including in this subsection 2(j), would be difficult if not impossible to ascertain, and that any such breach will result in irreparable and continuing damage to the Company. Therefore, Participant agrees that the Company, in addition to and without limiting any other remedy or right it may have, shall have the right to an immediate injunction or other equitable relief (without posting bond or other form of security) in the Chosen Courts (as defined below) enjoining any such threatened or actual breach. The existence of this right shall not preclude the Company from also pursuing any other rights and remedies at law or in equity that it may have. |
(vii) | If the Participant violates the terms of this subsection 2(j), then, in addition to any other remedy the Company might have, no amount shall be due to the Participant under this Agreement and the Participant shall be required to repay to the Company all amounts and Shares paid under this Agreement (or proceeds from Shares, if applicable). |
(viii) | Notice to Attorneys. For a Participant who is an attorney, the provisions in subsection 2(j)(ii) will apply only to prohibit Participant’s employment for twelve (12) months in any position in the Restricted Area that involves non-legal responsibilities similar to those performed for the Company, or that would involve or risk the use or disclosure of the Company’s attorney-client privileged or other Confidential Information, as defined in the Participant’s respective confidentiality agreement with the Company. This restriction and the other restrictions in subsection 2(j) are not intended to bar Participant from performing solely legal functions for any entity or client, provided that work does not involve or risk the disclosure of the Company’s attorney-client privileged information or other Confidential Information. |
(k) | Governing Law. This Agreement is issued in White Plains, New York, and shall be governed and construed in accordance with the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. |
(l) | Jurisdiction. Participant hereby consents to the personal jurisdiction of and venue in the state and federal courts in the state of New York (collectively, the “Chosen Courts”), and agrees that such Chosen Courts shall have exclusive jurisdiction to hear and determine or settle any dispute that may arise out of or in connection with this Agreement, and that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chosen Courts. |
(m) | Attorneys’ Fees. If any action or proceeding is commenced to construe or enforce this Agreement or the rights and duties of the parties hereunder, then the party prevailing in that action will be entitled to recover its reasonable attorneys’ fees and costs related to such action or proceeding. |
(n) | Severability. Any term or provision of this Agreement that is determined to be invalid or unenforceable by any court of competent jurisdiction in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction and such invalid or unenforceable provision shall be modified by such court so that it is enforceable to the extent permitted by applicable law. |
(o) | Section 409A Compliance. To the extent applicable, it is intended that the Plan and this Agreement comply with the requirements of Section 409A, and the Plan and this Agreement shall be interpreted accordingly. |
(i) | If it is determined that all or a portion of the Award constitutes deferred compensation for purposes of Section 409A, and if the Participant is a “specified employee,” as defined in Section 409A(a)(2)(B)(i) of the Code, at the time of the Participant’s separation from service, then, to the extent required under Section 409A, any portion of this Award that would otherwise be distributed upon the Participant’s termination of employment, shall instead be distributed on the earlier of (x) the first business day of the seventh month following the date of the Participant’s termination of employment or (y) the Participant’s death. |
(ii) | It is intended that this Agreement shall comply with the provisions of Section 409A, or an exception to Section 409A, to the extent applicable, so as not to subject the Participant to the payment of interest and taxes under Section 409A. Further, any reference to termination of employment, Early Retirement, Normal Retirement, separation from service, or similar terms under this Agreement shall be interpreted in a manner consistent with the definition of “separation from service” under Section 409A. |
(p) | Successors. All obligations of the Company under this Agreement shall be binding on any successor to the Company, and the term “Company” shall include any successor. |
• | Actuant Corporation (ATU) | • | Flowserve Corporation (FLS) |
• | AMETEK, Inc. (AME) | • | Harsco Corporation (HSC) |
• | Barnes Group, Inc. (B) | • | Hubbell Incorporated (HUB.B) |
• | Carlisle Companies Incorporated (CSL) | • | IDEX Corporation (IEX) |
• | Colfax Corporation (CFX) | • | Nordson Corporation (NDSN) |
• | Crane Co. (CR) | • | Roper Industries, Inc. (ROP) |
• | EnPro Industries, Inc. (NPO) | • | SPX Flow, Inc. (FLOW) |
• | Esterline Technologies Corporation (ESL) | • | Woodward, Inc. (WWD) |
1. | Grant of Options. In accordance with, and subject to, the terms and conditions of the Plan and this Agreement, the Company hereby confirms the grant on February 19, 2016 (the “Grant Date”) to the Optionee of the option to purchase from the Company all or any part of an aggregate of _______________ Shares (the “Option”), at the purchase price of $[ ] per Share (the “Option Price” or “Exercise Price”). The Option shall be a Nonqualified Stock Option. |
2. | Terms and Conditions. It is understood and agreed that the Option is subject to the following terms and conditions: |
(a) | Expiration Date. The Option shall expire on February 19, 2026, or, if the Optionee’s employment terminates before that date, on the date specified in subsection (f) below. |
(b) | Exercise of Option. The Option may be exercised at any time to the extent it has vested until the date it expires under the terms of this Agreement. |
(c) | Vesting. Subject to subsections 2(a) and 2(f), the Option shall vest in full upon February 19, 2019. |
(d) | Payment of Exercise Price. Permissible methods for payment of the Exercise Price upon exercise of the Option are described in Section 6.6 of the Plan, or, if the Plan is amended, successor provisions. In addition to the methods of exercise permitted by Section 6.6 of the Plan, the Optionee may exercise all or part of the Option by way of (i) broker-assisted cashless exercise in a manner consistent with the Federal Reserve Board's Regulation T, unless the Committee determines that such exercise method is prohibited by law, or (ii) net-settlement, whereby the Optionee directs the Company to withhold Shares that otherwise would be issued upon exercise of the Option having an aggregate Fair Market |
(e) | Tax Withholding. The Company shall have the power and the right to deduct or withhold, or require the Optionee to remit to the Company, all applicable federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to the exercise of the Option. The Optionee may elect to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares that otherwise would be issued upon exercise of the Option, with the number of Shares withheld having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the transaction (rounding up to the nearest whole Share). Any such election shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. |
(f) | Effect of Termination of Employment. |
(i) | Termination due to Death. If the Optionee’s employment is terminated as a result of the Optionee’s death, the Option shall expire on the earlier of February 19, 2026, or the date three years after the termination of the Optionee’s employment due to death. If the Option is not vested at the time of the Optionee's termination of employment due to death, the Option shall immediately become 100% vested. |
(ii) | Termination due to Disability. If the Optionee’s employment is terminated as a result of the Optionee’s Disability (as defined below), the Option shall expire on the earlier of February 19, 2026, or the date five years after the termination of the Optionee’s employment due to Disability. If the Option is not vested at the time of the termination of the Optionee's employment due to Disability, the Option shall immediately become 100% vested. |
(iii) | Termination due to Early Retirement. If the Optionee's employment is terminated as a result of the Optionee's Early Retirement (as defined below), then the Option shall expire on the earlier of February 19, 2026, or the date five years after the termination of the Optionee's employment due to Early Retirement. If the Optionee’s employment is terminated as a result of the Optionee’s Early Retirement and the Option is not vested at the time of the such termination, then a prorated portion of the Option shall immediately vest as of the date of the termination of employment in accordance with the terms of this subsection. The portion of an Option that shall be vested upon termination of employment due to the Optionee's Early Retirement (if the Option is not yet fully vested) shall be determined by multiplying the total number of Shares subject to such Option by a fraction, the numerator of which is the number of full months the Optionee has been continually employed since the Grant Date and the denominator of which is 36. For this purpose, full months of employment shall be based on monthly anniversaries of the Grant Date, not calendar months. Any remaining unvested portion of the Option shall expire as of the date of the termination of the Optionee's employment. |
(iv) | Termination due to Normal Retirement. If the Optionee's employment is terminated as a result of the Optionee's Normal Retirement (as defined below), the Option shall expire on the earlier of February 19, 2026, or the date five years after the termination of the Optionee's employment due to Normal Retirement. If |
(v) | Cause. If the Optionee’s employment is terminated by the Company (or an Affiliate, as the case may be) for Cause (as determined by the Committee), the Option (whether vested or unvested) shall expire on the date of the termination of the Optionee’s employment. For this purpose, “Cause” shall mean “cause” as defined in any employment agreement then in effect between the Optionee and the Company, or if not defined therein, or if there is no such agreement, the Optionee’s (a) embezzlement, misappropriation of corporate funds, or other material acts of dishonesty; (b) commission or conviction of any felony, or of any misdemeanor involving moral turpitude, or entry of a plea of guilty or nolo contendere to any felony or misdemeanor; (c) engagement in any activity that the Optionee knows or should know could harm the business or reputation of the Company or an affiliate; (d) material failure to adhere to the Company’s or its subsidiaries’ or affiliates’ corporate codes, policies or procedures as in effect from time to time; (e) willful failure to perform the Optionee’s assigned duties, repeated absenteeism or tardiness, insubordination, or the refusal or failure to comply with the directions or instructions of the Optionee’s supervisor, as determined by the Company or an affiliate; (f) violation of any statutory, contractual, or common law duty or obligation to the Company or an affiliate, including, without limitation, the duty of loyalty; (g) the Optionee’s violation of any of the applicable provisions of subsection 2(h) of this Agreement; or (h) material breach of any confidentiality or non-competition covenant entered into between the Optionee and the Company or an affiliate. The determination of the existence of Cause shall be made by the Company in good faith, and such determination shall be conclusive for purposes of this Agreement. |
(vi) | Voluntary Termination. If the Optionee’s employment is terminated by the Optionee and not because of the Optionee’s Early or Normal Retirement, Disability or death, the vested portion of the Option shall expire on the earlier of February 19, 2026, or the date three months after the termination of the Optionee’s employment. Any portion of the Option that is not vested (or the entire Option, if no part was vested) as of the date the Optionee’s employment so terminates shall expire immediately on the date of termination of employment, and such unvested portion of the Option (the entire Option, if no portion was vested on the date of termination) shall not thereafter be exercisable. |
(vii) | Other Termination by the Company. If the Optionee’s employment is terminated by the Company (or an Affiliate, as the case may be) for other than Cause (as determined by the Committee), and not because of the Optionee’s Early or Normal Retirement, Disability or death, the vested portion of the Option, if any, shall expire |
(g) | Compliance with Laws and Regulations. The Option shall not be exercised at any time when its exercise or the delivery of Shares hereunder would be in violation of any law, rule, or regulation that the Company may find to be valid and applicable. |
(h) | Non-Competition, Non-Solicitation and Non-Disparagement. In consideration of the Company entering into this Agreement with the Optionee, the Optionee agrees as follows: |
(i) | During the Optionee’s employment with the Company (which, for purposes of this subsection 2(h) includes its subsidiaries), Optionee will not, directly or indirectly, except for on behalf of the Company or except with the prior written approval of the Company, either as an employee, employer, consultant, agent, principal, partner, stockholder, member, corporate officer, director or in any other individual or representative capacity, engage or attempt to engage in any competitive activity relating to the Company’s business or products, or to its actual or demonstrably anticipated research or development, nor will Optionee engage in any other activities that conflict with Optionee’s employment obligations to the Company, where such activities (other employment, occupations, consulting, business activities, commitments, anticipated research or development, or conflicts) violate ITT’s Code of Conduct. Activities and commitments as used herein do not include passive investments in stocks or other financial instruments. |
(ii) | During the Optionee’s employment and for a period of twelve (12) months following the termination of the Optionee’s employment with the Company for any reason, the Optionee agrees that the Optionee will not within the Restricted Area, directly or indirectly, except with the Company’s prior written approval from an authorized officer, either as an employee, employer, consultant, agent, principal, partner, stockholder, member, corporate officer, director or in any other individual or representative capacity, engage or attempt to engage in any Competitive Activity relating to the Company’s business or products, or to its actual or demonstrably anticipated research or development. For the purposes of this subparagraph, “Competitive Activity” shall mean perform services for, have an interest in, be employed by, or do business with (including as a consultant), any person, firm, or corporation engaged in the same or a similar business as the Company’s within the Restricted Area. For purposes of this Agreement, “Restricted Area” shall mean, any area in which the Company has transacted business for the twelve (12) months prior to the Optionee’s termination of employment, which includes, but is not limited to, the state(s) in which Optionee worked on behalf of the Company, the United States, Australia, Argentina, Brazil, Canada, Chile, China, Columbia, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Italy, Japan, Republic of Korea, Luxembourg, Mexico, Netherlands, Peru, Russia, Saudi Arabia, Singapore, Spain, Taiwan, Thailand, United Arab Emirates, United Kingdom, Venezuela and such other countries as the Company is now conducting and may expand its business from time to time. |
(iii) | Throughout the Optionee’s term of employment with the Company and for a period of twelve (12) months following the Optionee’s termination of employment with |
(iv) | During the Optionee’s employment and for a period of twelve (12) months following the Optionee’s termination of employment with the Company for any reason, the Optionee shall not, directly or indirectly, hire, solicit, induce, attempt to induce or assist others in attempting to induce any employee of the Company with whom the Optionee has worked or had material contact with, during the twelve (12) month period immediately preceding the termination of the Optionee’s employment, to leave the employment of the Company or to accept employment or affiliation with (including as a consultant) any other company or firm of which the Optionee becomes an employee, owner, partner or consultant. |
(v) | The Optionee agrees not to make or publish any maliciously defamatory statements about the Company, including any current, former or future managers or representatives. |
(vi) | The Optionee agrees that damages in the event of a breach by the Optionee of the Optionee’s obligations in this Agreement, including in this subsection 2(h), would be difficult if not impossible to ascertain, and that any such breach will result in irreparable and continuing damage to the Company. Therefore, the Optionee agrees that the Company, in addition to and without limiting any other remedy or right it may have, shall have the right to an immediate injunction or other equitable relief (without posting bond or other form of security) in the Chosen Courts (as defined below) enjoining any such threatened or actual breach. The existence of this right shall not preclude the Company from also pursuing any other rights and remedies at law or in equity that it may have. |
(vii) | If the Optionee violates the terms of this subsection 2(h), then, in addition to any other remedy the Company might have, the Option shall immediately expire, no amount shall be due to the Optionee under this Agreement and the Optionee shall be required to repay to the Company all amounts and Shares paid under this Agreement (or proceeds therefrom). |
(viii) | Notice to Attorneys. For an Optionee who is an attorney, the provisions in subsection 2(h)(ii) will apply only to prohibit the Optionee’s employment for twelve (12) months in any position in the Restricted Area that involves non-legal responsibilities similar to those performed for the Company, or that would involve or risk the use or disclosure of the Company’s attorney-client privileged or other Confidential Information, as defined in the Optionee’s respective confidentiality agreement with the Company. This restriction and the other restrictions in subsection 2(h) are not intended to bar Optionee from performing solely legal functions for any entity or client, provided that work does not involve or risk the |
(i) | Optionee Bound by Plan and Rules. The Optionee hereby acknowledges receipt of a copy of the Plan and this Agreement and agrees to be bound by the terms and provisions thereof as amended from time to time. The Optionee agrees to be bound by any rules and regulations for administering the Plan as may be adopted by the Committee during the life of the Option. The Committee shall be authorized to make all necessary interpretations concerning the provisions of this Agreement and the proper application of those provisions to particular fact patterns, including but not limited to the basis for the Optionee’s termination of employment, and any such interpretation shall be final. |
(j) | Governing Law. This Agreement is issued, and the Option evidenced hereby is granted, in White Plains, New York, and shall be governed and construed in accordance with the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction |
(k) | Jurisdiction. The Optionee hereby consents to the personal jurisdiction of and venue in the state and federal courts in the state of New York (collectively, the “Chosen Courts”), and agrees that such Chosen Courts shall have exclusive jurisdiction to hear and determine or settle any dispute that may arise out of or in connection with this Agreement, and that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chosen Courts. |
(l) | Attorneys’ Fees. If any action or proceeding is commenced to construe or enforce this Agreement or the rights and duties of the parties hereunder, then the party prevailing in that action will be entitled to recover its reasonable attorneys’ fees and costs related to such action or proceeding. |
(m) | Severability. Any term or provision of this Agreement that is determined to be invalid or unenforceable by any court of competent jurisdiction in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction and such invalid or unenforceable provision shall be modified by such court so that it is enforceable to the extent permitted by applicable law. |
(n) | Successors. All obligations of the Company under this Agreement shall be binding on any successor to the Company, and the term “Company” shall include any successor. |
1. | Grant of Restricted Stock Units. In accordance with, and subject to, the terms and conditions of the Plan and this Agreement, the Company hereby confirms the grant on February 19, 2016 (the “Grant Date”) to the Grantee of _______________ Restricted Stock Units. The Restricted Stock Units are notional units of measurement corresponding to Shares of common stock (i.e., one Restricted Stock Unit is equivalent in value to one Share). |
2. | Terms and Conditions. It is understood and agreed that the Restricted Stock Units are subject to the following terms and conditions: |
(a) | Restrictions. Except as otherwise provided in the Plan and this Agreement, neither this Award nor any Restricted Stock Units subject to this Award may be sold, assigned, pledged, exchanged, transferred, hypothecated or encumbered, other than to the Company as a result of forfeiture of the Restricted Stock Units. |
(b) | Voting and Dividend Equivalent Rights. The Grantee shall not have any privileges of a stockholder of the Company with respect to the Restricted Stock Units, including without limitation any right to vote Shares or to receive dividends. Dividend equivalents shall be earned with respect to each Restricted Stock Unit that vests. The amount of dividend equivalents earned with respect to each such Restricted Stock Unit that vests shall be equal to the total dividends declared on a Share where the record date of the dividend is between the Grant Date of this Award and the date this Award is settled. Any dividend equivalents earned shall be paid in cash to the Grantee when the Shares subject to the vested Restricted |
(c) | Vesting of Restricted Stock Units and Payment. |
(i) | Threshold Condition to Payout of Awards. The RSUs shall not be due and payable to the Grantee unless the Company earns a level of “Adjusted EBITDA” (as defined below) in any rolling consecutive four calendar quarter period during the “Performance Period” that exceeds $199 million (the “Threshold”). For purposes of this Agreement, “Adjusted EBITDA” means net income before interest, taxes, depreciation and amortization, adjusted to exclude the impact of (a) asset write-downs, (b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs, (e) extraordinary nonrecurring items, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses. The “Performance Period” begins on January 1, 2016, and ends on the earlier of (A) December 31, 2018, or (B) December 31 of the year in which the Grantee separates from service. In the event of an Acceleration Event that constitutes a change of ownership or control (as determined under Section 162(m) of the Code) and that occurs during the Performance Period, the Threshold shall be deemed to have been satisfied. |
(ii) | Additional Vesting Requirements. Subject to earlier vesting pursuant to subsection 2(d) below (and achievement of the Threshold), the Restricted Stock Units shall vest (meaning the Period of Restriction shall lapse and the Restricted Stock Units shall become free of the forfeiture provisions in this Agreement) on February 19, 2019, provided the Grantee has been continuously employed by the Company or an Affiliate on a full-time basis from the Grant Date through the date the Restricted Stock Units vest. For the avoidance of doubt, continuous employment of a Grantee by the Company or an Affiliate for purposes of vesting in the Restricted Stock Units granted hereunder shall include continuous employment with the Company for so long as the Grantee continues working at such entity. |
(iii) | Payment of the Award. Except as provided in subsection 2(l) below, as soon as practicable after the date the Restricted Stock Units vest (including vesting upon a separation from service pursuant to subsection 2(d) below), the Company will deliver to the Grantee (A) one Share for each vested Restricted Stock Unit, with any fractional Shares resulting from proration pursuant to subsection 2(d) to be rounded to the nearest whole Share (with 0.5 to be rounded up) and (B) an amount in cash attributable to any dividend equivalents earned in accordance with subsection 2(b) above, in the case of (A) and (B) less any Shares or cash withheld in accordance with subsection 2(e) below. In the case of a payment on account of a separation from service, if the Threshold has not been achieved prior to the Grantee’s separation from service but is achieved within the Performance Period, payment of vested RSUs shall be made as soon as practicable after the achievement of the Threshold, subject to subsection 2(l) below. |
(iv) | Payment after Acceleration Event. If, prior to the payment date, Shares cease to exist as a result of an Acceleration Event and this Award is not assumed, converted, or otherwise replaced with a comparable award, the RSUs shall be settled in cash instead of Shares, and the amount of cash paid on the settlement date specified in this Agreement shall equal the sum of (A) the Fair Market Value of one Share multiplied by the number of vested RSUs, plus (B) the dividend equivalents described herein. For this purpose, “Fair Market Value” shall be the fair market value on the date of the Acceleration Event. However, if the Acceleration Event constitutes a change in control under Section 409A of the Code and any related regulations or other effective guidance promulgated thereunder (“Section 409A”) and, immediately following the Acceleration Event the common stock of the Company (or, if applicable, its successor) is not publicly traded, the Restricted Stock Units shall immediately become 100% vested as of the date of the Acceleration Event and be settled on such date. |
(d) | Effect of Termination of Employment. If the Grantee's employment with the Company and its Affiliates is terminated for any reason and such termination constitutes a “separation from service” within the meaning of Section 409A, any Restricted Stock Units that are not vested at the time of such separation from service shall be immediately forfeited except as follows: |
(i) | Separation from Service due to Death or Disability. If the Grantee's separation from service is due to death or Disability (as defined below), the Restricted Stock Units shall immediately become 100% vested as of such separation from service. For purposes of this Agreement, the term “Disability” shall mean the complete and permanent inability of the Grantee to perform all of his or her duties under the terms of his or her employment, as determined by the Committee upon the basis of such evidence, including independent medical reports and data, as the Committee deems appropriate or necessary. |
(ii) | Separation from Service due to Early Retirement or Separation from Service by the Company for Other than Cause. If the Grantee's separation from service is due to Early Retirement (as defined below) or an involuntary separation from service by the Company (or an Affiliate, as the case may be) for other than Cause (other than as specified in (iv), below), a prorated portion of the Restricted Stock Units shall immediately vest as of such separation from service. For these purposes, |
(A) | the prorated portion of the Restricted Stock Units shall be determined by multiplying the total number of Restricted Stock Units subject to this Award by a fraction, the numerator of which is the number of full months during which the Grantee has been continually employed since the Grant Date (not to exceed 36 in the aggregate) and the denominator of which is 36 (for avoidance of doubt, the period during which the Grantee may receive severance in the form of salary continuation or otherwise shall not affect the determination of the date of the Grantee’s separation from service or the date this award is settled); and |
(B) | full months of employment shall be based on monthly anniversaries of the Grant Date, not calendar months. |
(iii) | Separation from Service Due to Normal Retirement. If the Grantee’s separation from service is due to Normal Retirement (as defined below), and the separation from service occurs at least twelve (12) months after the Grant Date, the Grantee’s Restricted Stock Units shall immediately become 100% vested as of such separation from service. If the Grantee’s separation from service is due to Normal Retirement and the separation from service occurs within the twelve (12) month period beginning on the Grant Date, a prorated portion of the Restricted Stock Units shall immediately vest as of such separation from service in an amount equal to the number of Restricted Stock Units granted herein multiplied by a fraction, the numerator of which is the number of full months in such twelve (12) month period that were completed before the Grantee’s separation and the denominator of which is twelve (12). For this purpose, full months of employment shall be based on monthly anniversaries of the Grant Date, not calendar months. |
(iv) | Separation from Service After an Acceleration Event. If the Grantee’s employment is terminated on or within two (2) years after an Acceleration Event (A) by the Company (or an Affiliate, as the case may be) for other than Cause, as defined herein, and not because of the Grantee’s Early or Normal Retirement, Disability, or death, or (B) by the Grantee because of Good Reason, then any unvested Restricted Stock Units shall immediately become 100% vested. For this purpose, the term “Good Reason” shall mean (i) without the Grantee’s express written |
(e) | Tax Withholding. In accordance with Article 15 of the Plan, the Company may make such provisions and take such actions as it may deem necessary for the withholding of all applicable taxes attributable to the Restricted Stock Units and any related dividend equivalents. |
(f) | Grantee Bound by Plan and Rules. The Grantee hereby acknowledges receipt of a copy of the Plan and this Agreement and agrees to be bound by the terms and provisions thereof. The Grantee agrees to be bound by any rules and regulations for administering the Plan as may be adopted by the Committee prior to the date the Restricted Stock Units vest. The Committee shall be authorized to make all necessary interpretations concerning the provisions of this Agreement and the proper application of those provisions to particular fact patterns, including but not limited to the basis for the Grantee’s termination of employment, and any such interpretation shall be final. Terms used herein and not otherwise defined shall be as defined in the Plan. |
(g) | Non-Competition, Non-Solicitation and Non-Disparagement. In consideration of the Company entering into this Agreement with the Grantee, the Grantee agrees as follows: |
(i) | During Grantee’s employment with the Company (which, for purposes of this subsection 2(g) includes its subsidiaries), Grantee will not, directly or indirectly, except for on behalf of the Company or except with the prior written approval of the Company, either as an employee, employer, consultant, agent, principal, partner, stockholder, member, corporate officer, director or in any other individual or representative capacity, engage or attempt to engage in any competitive activity relating to the Company’s business or products, or to its actual or demonstrably anticipated research or development, nor will Grantee engage in any other activities that conflict with Grantee’s employment obligations to the Company, where such activities (other employment, occupations, consulting, business activities, commitments, anticipated research or development, or conflicts) violate ITT’s Code of Conduct. Activities and commitments as used herein do not include passive investments in stocks or other financial instruments. |
(ii) | During Grantee’s employment and for a period of twelve (12) months following the termination of Grantee’s employment with the Company for any reason, Grantee agrees that Grantee will not within the Restricted Area, directly or indirectly, except with the Company’s prior written approval from an authorized officer, either as an employee, employer, consultant, agent, principal, partner, stockholder, member, corporate officer, director or in any other individual or representative capacity, engage or attempt to engage in any Competitive Activity relating to the Company’s business or products, or to its actual or demonstrably anticipated research or development. For the purposes of this subparagraph, “Competitive Activity” shall mean perform services for, have an interest in, be employed by, or do business with (including as a consultant), any person, firm, or corporation engaged in the same or a similar business as the Company’s within the Restricted Area. For purposes of this Agreement, “Restricted Area” shall mean, any area in which the Company has transacted business for the twelve (12) months prior to Grantee’s termination of employment, which includes, but is not limited to, the state(s) in which Grantee worked on behalf of the Company, the United States, Australia, Argentina, Brazil, Canada, Chile, China, Columbia, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hong Kong, India, Indonesia, Italy, Japan, Republic of Korea, Luxembourg, Mexico, Netherlands, Peru, Russia, Saudi Arabia, Singapore, Spain, Taiwan, Thailand, United Arab Emirates, United Kingdom, Venezuela and such other countries as the Company is now conducting and may expand its business from time to time. |
(iii) | Throughout the Grantee’s term of employment with the Company and for a period of twelve (12) months following the Grantee’s termination of employment with the Company for any reason, the Grantee shall not, directly or indirectly, divert or attempt to divert or assist others in diverting any business of the Company including by soliciting, contacting or communicating with any customer or supplier of the Company with whom the Grantee has direct or indirect contact or upon termination of employment has had direct or indirect contact during the twelve (12) month period immediately preceding the Grantee’s date of termination with the Company. |
(iv) | During Grantee’s employment and for a period of twelve (12) months following Grantee’s termination of employment with the Company for any reason, the Grantee shall not, directly or indirectly, hire, solicit, induce, attempt to induce or assist others in attempting to induce any employee of the Company with whom the Grantee has worked or had material contact with, during the twelve (12) month period immediately preceding the termination of the Grantee’s employment, to leave the employment of the Company or to accept employment or affiliation with (including as a consultant) any other company or firm of which the Grantee becomes an employee, owner, partner or consultant. |
(v) | Grantee agrees not to make or publish any maliciously defamatory statements about the Company, including any current, former or future managers or representatives. |
(vi) | Grantee agrees that damages in the event of a breach by Grantee of Grantee’s obligations in this Agreement, including in this subsection 2(g), would be difficult if not impossible to ascertain, and that any such breach will result in irreparable |
(vii) | If the Grantee violates the terms of this subsection 2(g), then, in addition to any other remedy the Company might have, no amount shall be due to the Grantee under this Agreement and the Grantee shall be required to repay to the Company all amounts and Shares paid under this Agreement (or proceeds therefrom). |
(viii) | Notice to Attorneys. For a Grantee who is an attorney, the provisions in subsection 2(g)(ii) will apply only to prohibit Grantee’s employment for twelve (12) months in any position in the Restricted Area that involves non-legal responsibilities similar to those performed for the Company, or that would involve or risk the use or disclosure of the Company’s attorney-client privileged or other Confidential Information, as defined in Grantee’s respective confidentiality agreement with the Company. This restriction and the other restrictions in subsection 2(g) are not intended to bar Grantee from performing solely legal functions for any entity or client, provided that work does not involve or risk the disclosure of the Company’s attorney-client privileged information or other Confidential Information. |
(h) | Governing Law. This Agreement is issued, and the Restricted Stock Units evidenced hereby are granted, in White Plains, New York, and shall be governed and construed in accordance with the laws of the State of New York, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Agreement to the substantive law of another jurisdiction. |
(i) | Jurisdiction. Grantee hereby consents to the personal jurisdiction of and venue in the state and federal courts in the state of New York (collectively, the “Chosen Courts”), and agrees that such Chosen Courts shall have exclusive jurisdiction to hear and determine or settle any dispute that may arise out of or in connection with this Agreement, and that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chosen Courts. |
(j) | Attorneys’ Fees. If any action or proceeding is commenced to construe or enforce this Agreement or the rights and duties of the parties hereunder, then the party prevailing in that action will be entitled to recover its reasonable attorneys’ fees and costs related to such action or proceeding. |
(k) | Severability. Any term or provision of this Agreement that is determined to be invalid or unenforceable by any court of competent jurisdiction in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement or affecting the validity or enforceability of any of the terms or provisions of this Agreement in any other jurisdiction and such invalid or unenforceable provision shall be modified by such court so that it is enforceable to the extent permitted by applicable law. |
(l) | Section 409A Compliance. To the extent applicable, it is intended that the Plan and this Agreement comply with the requirements of Section 409A, and the Plan and this Agreement shall be interpreted accordingly. |
(i) | If it is determined that all or a portion of the Award constitutes deferred compensation for purposes of Section 409A, and if the Grantee is a “specified employee,” as defined in Section 409A(a)(2)(B)(i) of the Code, at the time of the Grantee’s separation from service, then, to the extent required under Section 409A, any Shares that would otherwise be distributed (along with the cash value of all dividend equivalents that would be payable) upon the Grantee’s separation from service shall instead be delivered (and, in the case of the dividend equivalents, paid) on the earlier of (x) the first business day of the seventh month following the date of the Grantee’s separation from service or (y) the Grantee’s death. |
(ii) | It is intended that this Agreement shall comply with the provisions of Section 409A, or an exception to Section 409A, to the extent applicable, so as not to subject the Grantee to the payment of interest and taxes under Section 409A. Further, any reference to termination of employment, Early Retirement, Normal Retirement, separation from service, or similar terms under this Agreement shall be interpreted in a manner consistent with the definition of “separation from service” under Section 409A |
(iii) | In no event will payment be made later than the date on which payment is treated as being timely under Treas. Reg. § 1.409A-3(d), generally referring to the last day of the calendar year in which the RSUs vest or, if later, the 15th day of the third calendar month following the vesting date, and subject to any delay required under paragraph (i), above. (For this purpose, vesting and vesting date refer to the vesting date designated in this Agreement.) The Grantee does not have a right to designate the taxable year of the payment. |
(m) | Successors. All obligations of the Company under this Agreement shall be binding on any successor to the Company, and the term “Company” shall include any successor. |
/S/ DENISE L. RAMOS |
Denise L. Ramos |
Chief Executive Officer and President |
/S/ THOMAS M. SCALERA |
Thomas M. Scalera |
Senior Vice President and |
Chief Financial Officer |
/S/ DENISE L. RAMOS |
Denise L. Ramos |
Chief Executive Officer and President |
/S/ THOMAS M. SCALERA |
Thomas M. Scalera |
Senior Vice President and |
Chief Financial Officer |
Document and Entity Information - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
May. 04, 2016 |
|
Document Documentand Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ITT | |
Entity Registrant Name | ITT Corporation | |
Entity Central Index Key | 0000216228 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 90.1 |
CONSOLIDATED CONDENSED INCOME STATEMENTS (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Statement [Abstract] | ||
Tax benefit on income from discontinued operations | $ 0.3 | $ 3.5 |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 37.3 | $ 42.0 |
Other comprehensive income (loss): | ||
Net foreign currency translation adjustment | 27.2 | (60.9) |
Net change in postretirement benefit plans, net of tax impacts of $0.6 and $0.3, respectively | 1.1 | 0.5 |
Other comprehensive income (loss) | 28.3 | (60.4) |
Comprehensive income (loss) | 65.6 | (18.4) |
Less: Comprehensive loss attributable to noncontrolling interests | (0.1) | (0.1) |
Comprehensive income (loss) attributable to ITT Corporation | 65.7 | (18.3) |
Reclassification adjustments (see Note 14): | ||
Amortization of prior service benefit, net of tax expense of $(0.5) and $(0.9), respectively | (0.9) | (1.6) |
Amortization of net actuarial loss, net of tax benefits of $1.1 and $1.2, respectively | 2.0 | 2.1 |
Net change in postretirement benefit plans, net of tax impacts of $0.6 and $0.3, respectively | $ 1.1 | $ 0.5 |
CONSOLIDATED CONDENSED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (Parentheticals) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax, Portion Attributable to Parent | $ 0.6 | $ 0.3 |
Other Comprehensive Income (Loss), Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service (Cost) Credit, Tax | (0.5) | (0.9) |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax | $ 1.1 | $ 1.2 |
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 250.0 | 250.0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares issued | 104.7 | 104.5 |
Common stock, shares outstanding | 90.0 | 89.5 |
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Operating Activities | ||
Net income | $ 37.3 | $ 42.0 |
Less: (Loss) income from discontinued operations | (0.3) | 3.4 |
Less: Loss attributable to noncontrolling interests | (0.1) | (0.1) |
Income from continuing operations attributable to ITT Corporation | 37.7 | 38.7 |
Adjustments to income from continuing operations: | ||
Depreciation and amortization | 25.3 | 20.7 |
Stock-based compensation | 2.9 | 3.1 |
Asbestos-related costs, net | 12.8 | 15.4 |
Asbestos-related payments, net | (4.3) | (3.9) |
Changes in assets and liabilities: | ||
Change in receivables | (21.0) | (56.7) |
Change in inventories | (4.0) | 3.6 |
Change in accounts payable | (14.8) | (0.5) |
Change in accrued expenses | (28.8) | (21.3) |
Change in Accrued and Deferred Income Taxes | 3.4 | 17.2 |
Other, net | (3.5) | (8.1) |
Net Cash – Operating activities | 5.7 | 8.2 |
Investing Activities | ||
Capital expenditures | (21.0) | (30.2) |
Acquisitions, net of cash acquired | (0.2) | 0.0 |
Purchases of investments | (40.0) | (15.3) |
Maturities of investments | 36.3 | 5.3 |
Other, net | 0.1 | 0.2 |
Net Cash – Investing activities | (24.8) | (40.0) |
Financing Activities | ||
Commercial paper, net borrowings | 28.5 | 113.5 |
Short-term revolving loans, borrowings | 27.7 | 0.0 |
Short-term revolving loans, repayments | (27.7) | 0.0 |
Repurchase of common stock | (6.9) | (82.8) |
Proceeds from issuance of common stock | 6.1 | 2.0 |
Dividends paid | (11.4) | (0.3) |
Excess tax benefit from equity compensation activity | 3.0 | 1.8 |
Other, net | (2.4) | (0.2) |
Net Cash – Financing activities | 16.9 | 34.0 |
Exchange rate effects on cash and cash equivalents | 9.9 | (15.8) |
Net Cash – Operating activities of discontinued operations | 7.5 | (0.3) |
Net change in cash and cash equivalents | 15.2 | (13.9) |
Cash and cash equivalents – beginning of year | 415.7 | 584.0 |
Cash and cash equivalents – end of period | 430.9 | 570.1 |
Cash paid during the year for: | ||
Interest | 1.4 | 0.0 |
Income taxes, net of refunds received | $ 5.0 | $ (1.0) |
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN SHAREDHOLDERS' EQUITY - USD ($) $ in Millions |
Total |
Common Stock [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Noncontrolling Interest [Member] |
---|---|---|---|---|---|
Total shareholders' equity, beginning balance at Dec. 31, 2014 | $ 1,220.3 | $ 91.0 | $ 1,445.1 | $ 5.4 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2014 | $ (144.2) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2014 | (176.7) | ||||
Unrealized loss on investment securities, beginning balance at Dec. 31, 2014 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.3 | ||||
Net income attributable to ITT Corporation | 42.1 | 42.1 | |||
Dividends declared | (10.5) | ||||
Activity from stock incentive plans | 6.5 | ||||
Share repurchases | (2.1) | (81.5) | |||
Net change in postretirement benefit plans | 0.5 | 0.5 | |||
Net cumulative translation adjustment | (60.9) | ||||
Loss attributable to noncontrolling interests | 0.1 | (0.1) | |||
Dividend to noncontrolling interest shareholders | 0.0 | ||||
Change In Equity From Noncontrolling Interest Attributable To Other | 0.0 | ||||
Postretirement benefit plans, ending balance at Mar. 31, 2015 | (143.7) | ||||
Cumulative translation adjustment, ending balance at Mar. 31, 2015 | (237.6) | ||||
Unrealized loss on investment securities, ending balance at Mar. 31, 2015 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | (1.8) | ||||
Net change in retained earnings | (43.4) | ||||
Net change in accumulated other comprehensive loss | (60.4) | ||||
Net change in noncontrolling interests | (0.1) | ||||
Total shareholders' equity, ending balance at Mar. 31, 2015 | 1,114.6 | 89.2 | 1,401.7 | (381.6) | 5.3 |
Total shareholders' equity, beginning balance at Dec. 31, 2015 | 1,365.4 | 89.5 | 1,696.7 | 3.3 | |
Postretirement benefit plans, beginning balance at Dec. 31, 2015 | (153.7) | ||||
Cumulative translation adjustment, beginning balance at Dec. 31, 2015 | (270.1) | ||||
Unrealized loss on investment securities, beginning balance at Dec. 31, 2015 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Activity from stock incentive plans | 0.7 | ||||
Net income attributable to ITT Corporation | 37.4 | 37.4 | |||
Dividends declared | (11.3) | ||||
Activity from stock incentive plans | 11.1 | ||||
Share repurchases | (0.2) | (6.7) | |||
Net change in postretirement benefit plans | 1.1 | 1.1 | |||
Net cumulative translation adjustment | 27.2 | ||||
Loss attributable to noncontrolling interests | 0.1 | (0.1) | |||
Dividend to noncontrolling interest shareholders | (1.9) | ||||
Change In Equity From Noncontrolling Interest Attributable To Other | 0.2 | ||||
Postretirement benefit plans, ending balance at Mar. 31, 2016 | (152.6) | ||||
Cumulative translation adjustment, ending balance at Mar. 31, 2016 | (242.9) | ||||
Unrealized loss on investment securities, ending balance at Mar. 31, 2016 | (0.3) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net change in common stock | 0.5 | ||||
Net change in retained earnings | 30.5 | ||||
Net change in accumulated other comprehensive loss | 28.3 | ||||
Net change in noncontrolling interests | (1.8) | ||||
Total shareholders' equity, ending balance at Mar. 31, 2016 | $ 1,422.9 | $ 90.0 | $ 1,727.2 | $ (395.8) | $ 1.5 |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business ITT Corporation is a diversified manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. Unless the context otherwise indicates, references herein to "ITT," "the Company," and such words as "we," "us," and "our" include ITT Corporation and its subsidiaries. ITT operates through four segments: Industrial Process, consisting of industrial pumping and complementary equipment; Motion Technologies, consisting of friction and shock and vibration equipment; Interconnect Solutions, consisting of electronic connectors; and Control Technologies, consisting of fluid handling, motion control, and noise and energy absorption products. Financial information for our segments is presented in Note 3, "Segment Information." On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related business, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this Report as the "2011 spin-off." On May 29, 2015, Harris Corporation acquired Exelis. Basis of Presentation The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in ITT's Annual Report on Form 10-K for the year ended December 31, 2015 (2015 Annual Report) in preparing these unaudited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2015 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities and recoveries from insurers, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. ITT's quarterly financial periods end on the Saturday that is generally closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31st. For ease of presentation, the quarterly financial statements included herein are described as ending on the last day of the calendar quarter. |
RECENT ACCOUNTING PRONOUNCEMENTS |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. Accounting Pronouncements Not Yet Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09 to simplify several aspects of the accounting for employee share-based payment transactions standard, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. The guidance is effective for the Company beginning in the first quarter of 2017. The updates to the accounting standard include the following:
The updates are to be applied using a modified retrospective approach as a cumulative adjustment to retained earnings and early adoption is permitted. We have yet to finalize the evaluation of the potential impact of this ASU on our financial statements, however we do not expect these changes to have a material impact. In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intended to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. The revised standard will require entities to recognize a liability for its lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at the present value of lease payments and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For finance leases, the leased asset is depreciated on a straight-line basis and recorded separately from the interest expense in the income statement resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. The ASU requires that assets and liabilities be presented or disclosed separately and classified appropriately as current and noncurrent. The ASU further requires additional disclosure of certain qualitative and quantitative information related to lease agreements. The new standard is effective for the Company beginning in the first quarter 2019 and early adoption is permitted. We are currently evaluating the impact of these amendments on our financial statements. In May 2014, the FASB issued ASU 2014-09 amending the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised 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. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new guidance will be effective for the Company beginning in its first quarter of 2018. The amendments may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. We are currently evaluating the impact of these amendments and the transition alternatives on our financial statements. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's segments are reported on the same basis used internally for evaluating performance and for allocating resources. Our four reportable segments are referred to as: Industrial Process, Motion Technologies, Interconnect Solutions and Control Technologies. Industrial Process manufactures engineered fluid process equipment serving a diversified mix of customers in global industries such as chemical, oil and gas, mining, and other industrial process markets and is a provider of plant optimization and efficiency solutions and aftermarket services and parts. Motion Technologies manufactures brake components and specialized sealing solutions, shock absorbers and damping technologies primarily for the global automotive, truck and trailer, public bus and rail transportation markets. Interconnect Solutions manufactures and designs a wide range of highly engineered harsh environment connector solutions that make it possible to transfer signal and power between electronic devices which service global customers for the aerospace and defense, industrial and transportation, oil and gas, and medical markets. Control Technologies manufactures specialized equipment, including actuation, fuel management, noise and energy absorption, and environmental control system components, for the aerospace and defense, and industrial markets. Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as asbestos and environmental liabilities, that are managed at a corporate level and are not included in segment results when evaluating performance or allocating resources. Assets of the segments exclude general corporate assets, which principally consist of cash, investments, asbestos-related assets and certain property, plant and equipment.
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RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING ACTIONS | RESTRUCTURING ACTIONS The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Income Statements for the three months ended March 31, 2016 and 2015.
The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the three months ended March 31, 2016 and 2015.
We have initiated various restructuring activities throughout our businesses during the past two years, of which only those noted below are considered to be individually significant. Other less significant restructuring actions taken during 2016 and 2015 included various reduction in force initiatives and the consolidation of two sites within our Control Technologies segment to an existing lower cost location. Industrial Process Restructuring Actions Beginning in early 2015, we have been executing a series of restructuring actions focused on achieving efficiencies and reducing the overall cost structure of the Industrial Process segment. During the first quarter of 2016, we continued to progress on these objectives and recognized $3.2 of restructuring costs, aggregating to a total cost of $15.4 recognized related to these actions. The majority of costs recognized principally relate to severance for headcount reductions. During 2015, we recognized restructuring costs of $12.2 for these actions, with $8.9 recognized during the first quarter of 2015. The charges taken during the first quarter of 2016 are largely associated with an additional planned headcount reduction of approximately 80 employees, amounting to a total planned headcount reduction of approximately 280 employees. We will be continuing to monitor and evaluate the need for any additional restructuring actions. The following table provides a rollforward of the restructuring accruals associated with the Industrial Process restructuring actions.
Interconnect Solutions Restructuring Actions In May 2015, we initiated a restructuring action designed to reduce the cost structure of the ICS segment primarily through additional headcount reductions of approximately 100 employees, for which the Company recognized costs of $6.5 during 2015. Payments related to the remaining accrual for this action are expected to be completed during 2016. The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions restructuring actions.
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INCOME TAXES |
3 Months Ended |
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Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three months ended March 31, 2016 and 2015, the Company recognized income tax expense of $11.7 and $18.1 and an effective tax rate of 23.7% and 31.9%, respectively. The lower effective tax rate in 2016 is primarily due to a reduction in losses in Germany and the United Kingdom, for which we do not record a tax benefit. The Company continues to benefit from earnings eligible for a tax holiday in South Korea, as well as a larger mix of earnings in non-U.S. jurisdictions with favorable tax rates. The Company operates in various tax jurisdictions and is subject to examination by tax authorities in these jurisdictions. The Company is currently under examination in several jurisdictions including Canada, Germany, Hong Kong, Italy, Mexico, South Korea, the U.S. and Venezuela. The estimated tax liability calculation for unrecognized tax benefits includes dealing with uncertainties in the application of complex tax laws and regulations in various tax jurisdictions. Due to the complexity of some uncertainties, the ultimate resolution may result in a payment that is materially different from the current estimate of the unrecognized tax benefit. Over the next 12 months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could change by approximately $16 due to changes in audit status, expiration of statutes of limitations and other events. In addition, the settlement of any future examinations relating to the 2011 and prior tax years could result in changes in amounts attributable to the Company under its existing Tax Matters Agreement with Exelis and Xylem. |
EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE DATA The following table provides a reconciliation of the data used in the calculation of basic and diluted earnings per share from continuing operations attributable to ITT for the three months ended March 31, 2016 and 2015.
The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 because they were anti-dilutive.
In addition, 0.2 of outstanding return on invested capital (ROIC) awards were excluded from the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 respectively, as the necessary performance conditions had not yet been satisfied. |
RECEIVABLES, NET |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES, NET | RECEIVABLES, NET
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INVENTORIES, NET |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES, NET | INVENTORIES, NET
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OTHER CURRENT AND NON-CURRENT ASSETS |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER CURRENT AND NON-CURRENT ASSETS | OTHER CURRENT AND NON-CURRENT ASSETS
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PLANT, PROPERTY AND EQUIPMENT, NET |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLANT, PROPERTY AND EQUIPMENT, NET | PLANT, PROPERTY AND EQUIPMENT, NET
Depreciation expense of $18.1 and $17.5 was recognized in the three months ended March 31, 2016 and 2015, respectively. |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill The following table provides a rollforward of the carrying amount of goodwill for the three months ended March 31, 2016 by segment.
Other Intangible Assets, Net
Amortization expense related to finite-lived intangible assets was $5.4 and $2.2 for the three months ended March 31, 2016 and 2015, respectively. |
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES |
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ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES | ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES
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DEBT Debt (Notes) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt [Text Block] | NOTE 13 DEBT
Commercial Paper Commercial paper outstanding was $123.0 and $94.5, had an associated weighted average interest rate of 1.00% and 1.04% and maturity terms less than one month from the date of issuance as of March 31, 2016 and December 31, 2015, respectively. Short-term Loans As of March 31, 2016 and December 31, 2015, we had $151.1 and $150.0 in outstanding borrowings under our $500 revolving credit facility, respectively, with an associated weighted average interest rate of 1.69% and 1.55%, respectively. Please refer to the Liquidity section within "Item 2. Management's Discussion and Analysis," for additional information on the revolving credit facility as well as our overall funding and liquidity strategy. |
POSTRETIREMENT BENEFIT PLANS |
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POSTRETIREMENT BENEFIT PLANS | POSTRETIREMENT BENEFIT PLANS The following tables provide the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three months ended March 31, 2016 and 2015.
We made contributions to our global postretirement plans of $3.3 and $2.6 during the three months ended March 31, 2016 and 2015, respectively. We expect to make contributions of approximately $10 to $15 during the remainder of 2016, principally related to our other postretirement employee benefit plans. Amortization from accumulated other comprehensive income into earnings related to prior service cost and net actuarial loss was $1.1 and $0.5, net of tax, during the three months ended March 31, 2016 and 2015, respectively. No other reclassifications from accumulated other comprehensive income into earnings were recognized during any of the presented periods. |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION |
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LONG-TERM INCENTIVE EMPLOYEE COMPENSATION | LONG-TERM INCENTIVE EMPLOYEE COMPENSATION Our long-term incentive plan (LTIP) costs are primarily recorded within general and administrative expenses. The following table provides the components of LTIP costs for the three months ended March 31, 2016 and 2015.
As of March 31, 2016, there was estimated unrecognized compensation cost of $32.3 related to unvested equity-based awards that is expected to be recognized ratably over a weighted-average period of 2.4 years, and $3.5 related to unvested liability-based awards that are expected to be recognized ratably over a weighted-average period of 2.4 years. Year-to-Date 2016 LTIP Activity The majority of our LTIP activity occurs during the first quarter of each year. During the three months ended March 31, 2016, we granted the following LTIP awards as provided in the table below:
The NQOs vest either on the completion of a three-year service period or annually in three equal installments, as determined by employee level, and have a ten-year expiration period. RSUs and PSUs vest on the completion of a three-year service period. During the three months ended March 31, 2016 and 2015, 0.3 and 0.1 NQOs were exercised resulting in proceeds of $6.1 and $2.0, respectively. RSUs of 0.2 vested and were issued during both the three months ended March 31, 2016 and 2015, respectively. In addition, PSUs of 0.2 were issued during the three months ended March 31, 2016 that vested on December 31, 2015. The fair value of each NQO grant was estimated on the date of grant using a binomial lattice pricing model that incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following table details the weighted average assumptions used to measure fair value and the resulting grant date fair value for the first quarter 2016 NQO grants.
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CAPITAL STOCK |
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Equity [Abstract] | |
CAPITAL STOCK | CAPITAL STOCK On October 27, 2006, a three-year $1 billion share repurchase program was approved by the Board of Directors (2006 Share Repurchase Program). On December 16, 2008, the provisions of the 2006 Share Repurchase Program were modified by the Board of Directors to replace the original three-year term with an indefinite term. We did not repurchase any shares of common stock under this program during the three months ended March 31, 2016. During the three months ended March 31, 2015 we repurchased 2.0 shares of common stock for $80.0. To date, under the 2006 Share Repurchase Program, the Company has repurchased 18.4 shares for $759.3. Separate from the 2006 Share Repurchase Program, the Company repurchased 0.2 shares and 0.1 shares for an aggregate price of $6.9 and $3.6, during the three months ended March 31, 2016 and 2015, respectively, in settlement of employee tax withholding obligations due upon the vesting of RSUs and PSUs. |
COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES From time to time, we are involved in legal proceedings that are incidental to the operation of our businesses. Some of these proceedings allege damages relating to environmental exposures, intellectual property matters, copyright infringement, personal injury claims, employment and employee benefit matters, government contract issues and commercial or contractual disputes and acquisitions or divestitures. We will continue to defend vigorously against all claims. Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have a material adverse impact on our financial statements, unless otherwise noted below. Asbestos Matters ITT, including its subsidiary Goulds Pumps, Inc. (Goulds Pumps), has been sued, along with many other companies in product liability lawsuits alleging personal injury due to asbestos exposure. These claims generally allege that certain products sold by us or our subsidiaries prior to 1985 contained a part manufactured by a third party (e.g., a gasket) which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. As of March 31, 2016, there were 36 thousand pending claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows:
Frequently, plaintiffs are unable to identify any ITT or Goulds Pumps product as a source of asbestos exposure. Our experience to date is that a majority of resolved claims are dismissed without any payment from the Company. Management believes that a large majority of the pending claims have little or no value. In addition, because claims are sometimes dismissed in large groups, the average cost per resolved claim can fluctuate significantly from period to period. ITT expects more asbestos-related suits will be filed in the future, and ITT will continue to aggressively defend or seek a reasonable resolution, as appropriate. Asbestos litigation is a unique form of litigation. Frequently, the plaintiff sues a large number of defendants and does not state a specific claim amount. After filing complaint, the plaintiff engages defendants in settlement negotiations to establish a settlement value based on certain criteria, including the number of defendants in the case. Rarely do the plaintiffs seek to collect all damages from one defendant. Rather, they seek to spread the liability, and thus the payments, among many defendants. As a result of this and other factors, the Company is unable to estimate the maximum potential exposure to pending claims and claims estimated to be filed over the next 10 years. Estimating our exposure to pending asbestos claims and those that may be filed in the future is subject to significant uncertainty and risk as there are multiple variables that can affect the timing, severity, quality, quantity and resolution of claims. Any predictions with respect to the variables impacting the estimate of the asbestos liability and related asset are subject to even greater uncertainty as the projection period lengthens. In light of the uncertainties and variables inherent in the long-term projection of the Company's asbestos exposures, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years, which additional costs may be material, we do not believe there is a reasonable basis for estimating those costs at this time. The asbestos liability and related receivables reflect management's best estimate of future events. However, future events affecting the key factors and other variables for either the asbestos liability or the related receivables could cause actual costs or recoveries to be materially higher or lower than currently estimated. Due to these uncertainties, as well as our inability to reasonably estimate any additional asbestos liability for claims which may be filed beyond the next 10 years, it is difficult to predict the ultimate cost of resolving all pending and unasserted asbestos claims. We believe it is possible that future events affecting the key factors and other variables within the next 10 years, as well as the cost of asbestos claims filed beyond the next 10 years, net of expected recoveries, could have a material adverse effect on our financial statements. Income Statement Charges As part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent qualitative and quantitative data available for the key inputs and assumptions, comparing the data to expectations on which the most recent annual liability and asset estimates were calculated. Based on this evaluation, the Company determined that no change in the estimate was warranted for the quarter ended March 31, 2016 other than the incremental accrual to maintain a rolling 10-year forecast period. A net asbestos charge of $15.4 was recognized in both the three months ended March 31, 2016 and 2015, to maintain the 10-year forecast period. Additionally during the first quarter of 2016, we entered into a settlement agreement with an insurer to settle responsibility for multiple insurance claims, resulting in a benefit of $2.6. Changes in Financial Position The Company's estimated asbestos exposure, net of expected recoveries, for the resolution of all pending claims and claims estimated to be filed in the next 10 years was $639.3 and $630.8 as of March 31, 2016 and December 31, 2015, respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the three months ended March 31, 2016.
Environmental In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and site remediation. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by ITT, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations. The following table provides a rollforward of the estimated environmental liability for the three months ended March 31, 2016 and 2015.
In the fourth quarter of 2015, ITT entered into a settlement agreement with one of our insurance providers whereby the provider agreed to pay the net present value of the remaining limits of the policy amounting to approximately $34.2. In the first quarter of 2016, the Company received $2.0 in cash and $32.2 was deposited into a QSF which can be drawn upon only to pay certain future environmental expenses associated with remediation sites covered under the policy, including sites owned by a former subsidiary of the Company. The Company recorded $23 of deferred income related to the settlement representing the excess of QSF monies over the probable liabilities associated with the covered remediation sites. In addition to the QSF asset, there is a receivable of $2.0 from other third parties for reimbursement of environmental costs, resulting in a total environmental-related asset of $34.2 as of March 31, 2016. The environmental-related asset as of December 31, 2015 was $12.8. We are currently involved with 47 active environmental investigation and remediation sites. At March 31, 2016, we have estimated the potential high-end liability range of environmental-related matters to be $134. As actual costs incurred at identified sites in future periods may vary from our current estimates given the inherent uncertainties in evaluating environmental exposures, management believes it is possible that the outcome of these uncertainties may have a material adverse effect on our financial statements. Other Matters The Company is responding to a civil subpoena from the Department of Defense, Office of the Inspector General, which was issued as part of an investigation being led by the Civil Division of the U.S. Department of Justice. The subpoena and related investigation involve certain products manufactured by the Company’s Interconnect Solutions segment that are purchased or used by the U.S. government. The Company is cooperating with the government and is unable to estimate the timing or outcome of this matter. |
ACQUISITIONS (Notes) |
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Business Combination Disclosure [Text Block] | ACQUISITIONS Wolverine Automotive Holdings On October 5, 2015, we completed the acquisition of Wolverine Automotive Holdings Inc., the parent company of Wolverine Advanced Materials LLC (Wolverine). Wolverine is a manufacturer of customized technologies for automotive braking systems and specialized sealing solutions for harsh operating environments across a range of industries. The purchase price of $298.3, net of cash acquired, was funded through a combination of cash and borrowings from our revolving credit facility. Wolverine has approximately 500 employees globally and reported 2014 revenues of $154, including $17 of sales to ITT. The allocation of the purchase price is based on the fair value of assets acquired, liabilities assumed and non-controlling interests in Wolverine as of October 5, 2015. Our assessment of fair value is preliminary, and may be adjusted for information that is currently not available to us, including but not limited to, the valuation of intangible assets, postretirement obligations, environmental liabilities, deferred tax matters, real estate, and residual goodwill. The purchase price allocation presented below represents the effect of recording preliminary estimates for the fair value of assets acquired, liabilities assumed, and non-controlling interests in Wolverine and related deferred income taxes. We expect to obtain the information necessary to finalize the fair value of the net assets acquired at the acquisition date during the measurement period. Changes to the preliminary estimates of the fair value of the net assets acquired during the measurement period will be recorded as adjustments to those assets and liabilities with a corresponding adjustment to goodwill. The goodwill of $162.5, which has been assigned to the Motion Technologies segment, is not deductible for income tax purposes. Other intangibles acquired include existing customer relationships, proprietary technology, and trade names. Allocation of Purchase Price for Wolverine
Pro forma results of operations have not been presented because the acquisition was not deemed material at the acquisition date. |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) |
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Accounting Policies [Abstract] | |
Description of Business | Description of Business ITT Corporation is a diversified manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. Unless the context otherwise indicates, references herein to "ITT," "the Company," and such words as "we," "us," and "our" include ITT Corporation and its subsidiaries. ITT operates through four segments: Industrial Process, consisting of industrial pumping and complementary equipment; Motion Technologies, consisting of friction and shock and vibration equipment; Interconnect Solutions, consisting of electronic connectors; and Control Technologies, consisting of fluid handling, motion control, and noise and energy absorption products. Financial information for our segments is presented in Note 3, "Segment Information." On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related business, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this Report as the "2011 spin-off." On May 29, 2015, Harris Corporation acquired Exelis. |
Basis of Accounting | Basis of Presentation The unaudited consolidated condensed financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC) and, in the opinion of management, reflect all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the financial position, results of operations, and cash flows for the periods presented. Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted pursuant to such SEC rules. We believe that the disclosures made are adequate to make the information presented not misleading. We consistently applied the accounting policies described in ITT's Annual Report on Form 10-K for the year ended December 31, 2015 (2015 Annual Report) in preparing these unaudited financial statements. These financial statements should be read in conjunction with the financial statements and notes thereto included in our 2015 Annual Report. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities and recoveries from insurers, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. ITT's quarterly financial periods end on the Saturday that is generally closest to the last day of the calendar quarter, except for the last quarterly period of the fiscal year, which ends on December 31st. For ease of presentation, the quarterly financial statements included herein are described as ending on the last day of the calendar quarter. |
RECENT ACCOUNTING PRONOUNCEMENTS Recent Accounting Pronouncements (Policies) |
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Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Pronouncements Not Yet Adopted In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-09 to simplify several aspects of the accounting for employee share-based payment transactions standard, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. The guidance is effective for the Company beginning in the first quarter of 2017. The updates to the accounting standard include the following:
The updates are to be applied using a modified retrospective approach as a cumulative adjustment to retained earnings and early adoption is permitted. We have yet to finalize the evaluation of the potential impact of this ASU on our financial statements, however we do not expect these changes to have a material impact. In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intended to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. The revised standard will require entities to recognize a liability for its lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at the present value of lease payments and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For finance leases, the leased asset is depreciated on a straight-line basis and recorded separately from the interest expense in the income statement resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. The ASU requires that assets and liabilities be presented or disclosed separately and classified appropriately as current and noncurrent. The ASU further requires additional disclosure of certain qualitative and quantitative information related to lease agreements. The new standard is effective for the Company beginning in the first quarter 2019 and early adoption is permitted. We are currently evaluating the impact of these amendments on our financial statements. In May 2014, the FASB issued ASU 2014-09 amending the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised 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. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The new guidance will be effective for the Company beginning in its first quarter of 2018. The amendments may be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. We are currently evaluating the impact of these amendments and the transition alternatives on our financial statements. |
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Schedule of Segment Reporting Information, by Segment [Table Text Block] |
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RESTRUCTURING ACTIONS RESTRUCTURING ACTIONS (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | The table below summarizes the restructuring costs presented within general and administrative expenses in our Consolidated Condensed Income Statements for the three months ended March 31, 2016 and 2015.
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Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Condensed Balance Sheet within accrued liabilities, for the three months ended March 31, 2016 and 2015.
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2015 Interconnect Solutions Restructuring Actions [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | Interconnect Solutions Restructuring Actions In May 2015, we initiated a restructuring action designed to reduce the cost structure of the ICS segment primarily through additional headcount reductions of approximately 100 employees, for which the Company recognized costs of $6.5 during 2015. Payments related to the remaining accrual for this action are expected to be completed during 2016. The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions restructuring actions.
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2015 Industrial Process Restructuring Action [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs [Table Text Block] | Industrial Process Restructuring Actions Beginning in early 2015, we have been executing a series of restructuring actions focused on achieving efficiencies and reducing the overall cost structure of the Industrial Process segment. During the first quarter of 2016, we continued to progress on these objectives and recognized $3.2 of restructuring costs, aggregating to a total cost of $15.4 recognized related to these actions. The majority of costs recognized principally relate to severance for headcount reductions. During 2015, we recognized restructuring costs of $12.2 for these actions, with $8.9 recognized during the first quarter of 2015. The charges taken during the first quarter of 2016 are largely associated with an additional planned headcount reduction of approximately 80 employees, amounting to a total planned headcount reduction of approximately 280 employees. We will be continuing to monitor and evaluate the need for any additional restructuring actions. The following table provides a rollforward of the restructuring accruals associated with the Industrial Process restructuring actions.
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EARNINGS PER SHARE (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Loss Per Share | The following table provides a reconciliation of the data used in the calculation of basic and diluted earnings per share from continuing operations attributable to ITT for the three months ended March 31, 2016 and 2015.
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Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings | The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three months ended March 31, 2016 and 2015 because they were anti-dilutive.
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RECEIVABLES, NET (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES, NET |
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INVENTORIES, NET (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net |
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OTHER CURRENT AND NON-CURRENT ASSETS (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current and Non Current Assets |
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PLANT, PROPERTY AND EQUIPMENT, NET (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plant, Property and Equipment, Net |
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GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the Carrying Amount of Goodwill | Goodwill The following table provides a rollforward of the carrying amount of goodwill for the three months ended March 31, 2016 by segment.
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Other Intangible Assets | Other Intangible Assets, Net
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ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Other Non-Current Liabilities |
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DEBT Debt (Tables) |
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Debt [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt [Table Text Block] |
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POSTRETIREMENT BENEFIT PLANS (Tables) |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans | The following tables provide the components of net periodic benefit cost for pension plans and other employee-related benefit plans for the three months ended March 31, 2016 and 2015.
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LONG-TERM INCENTIVE EMPLOYEE COMPENSATION (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Incentive Employee Compensation Costs | The following table provides the components of LTIP costs for the three months ended March 31, 2016 and 2015.
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Summary of Long-Term Incentive Plan Award Grants during year |
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Weighted Average Grant Date Fair Value Assumptions for NQOs | The fair value of each NQO grant was estimated on the date of grant using a binomial lattice pricing model that incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following table details the weighted average assumptions used to measure fair value and the resulting grant date fair value for the first quarter 2016 NQO grants.
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Liability Contingencies [Table Text Block] | As of March 31, 2016, there were 36 thousand pending claims against ITT, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows:
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Net Asbestos Charges [Table Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Roll Forward of Asbestos Liability and Related Assets | Changes in Financial Position The Company's estimated asbestos exposure, net of expected recoveries, for the resolution of all pending claims and claims estimated to be filed in the next 10 years was $639.3 and $630.8 as of March 31, 2016 and December 31, 2015, respectively. The following table provides a rollforward of the estimated asbestos liability and related assets for the three months ended March 31, 2016.
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Rollforward of Environmental Liability and Related Assets | The following table provides a rollforward of the estimated environmental liability for the three months ended March 31, 2016 and 2015.
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ACQUISITIONS (Tables) |
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Wolverine Advanced Materials Acquisition [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | Allocation of Purchase Price for Wolverine
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SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Revenue (Detail) $ in Millions |
3 Months Ended | |
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Mar. 31, 2016
USD ($)
Segment
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Mar. 31, 2015
USD ($)
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Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | Segment | 4 | |
Revenue | $ 609.1 | $ 588.7 |
Operating Income | $ 51.0 | $ 57.9 |
Operating Margin | 8.40% | 9.80% |
Total Segment Results [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 610.1 | $ 590.1 |
Operating Income | $ 72.1 | $ 80.5 |
Operating Margin | 11.80% | 13.70% |
Industrial Process [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 208.8 | $ 255.6 |
Operating Income | $ 9.0 | $ 20.4 |
Operating Margin | 4.30% | 8.00% |
Motion Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 257.0 | $ 191.2 |
Operating Income | $ 50.7 | $ 41.0 |
Operating Margin | 19.70% | 21.40% |
Interconnect Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 72.4 | $ 77.5 |
Operating Income | $ 2.0 | $ 4.8 |
Operating Margin | 2.80% | 6.20% |
Control Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 71.9 | $ 65.8 |
Operating Income | $ 10.4 | $ 14.3 |
Operating Margin | 14.50% | 21.70% |
Total Eliminations / Corporate and Other costs | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ (1.0) | $ (1.4) |
Operating Income | $ (21.1) | $ (22.6) |
Operating Margin | 0.00% | 0.00% |
Asbestos-related costs, net | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0.0 | $ 0.0 |
Operating Income | $ (12.8) | $ (15.4) |
Operating Margin | 0.00% | 0.00% |
Eliminations / Other corporate costs | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ (1.0) | $ (1.4) |
Operating Income | $ (8.3) | $ (7.2) |
Operating Margin | 0.00% | 0.00% |
SEGMENT INFORMATION - Schedule of Segment Reporting Information by Segment Assets (Detail) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
[1] | |||
Segment Reporting Information [Line Items] | ||||||
Total Assets | $ 3,809.2 | $ 3,723.6 | ||||
Capital Expenditures | 21.0 | $ 30.2 | ||||
Depreciation & Amortization | 25.3 | 20.7 | ||||
Industrial Process [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | 1,079.4 | 1,097.5 | ||||
Capital Expenditures | 3.5 | 6.2 | ||||
Depreciation & Amortization | 7.2 | 7.6 | ||||
Motion Technologies [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | 830.7 | 779.8 | ||||
Capital Expenditures | 14.2 | 13.3 | ||||
Depreciation & Amortization | 10.1 | 6.9 | ||||
Interconnect Solutions [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | 312.3 | 303.2 | ||||
Capital Expenditures | 1.8 | 7.1 | ||||
Depreciation & Amortization | 3.0 | 2.3 | ||||
Control Technologies [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | 378.7 | 370.6 | ||||
Capital Expenditures | 1.4 | 2.4 | ||||
Depreciation & Amortization | 3.4 | 2.5 | ||||
Corporate and Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Assets | 1,208.1 | $ 1,172.5 | ||||
Capital Expenditures | 0.1 | 1.2 | ||||
Depreciation & Amortization | $ 1.6 | $ 1.4 | ||||
|
RESTRUCTURING ACTIONS Restructuring Costs (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 5.5 | $ 9.3 |
Employee Severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 5.1 | 8.9 |
Restructuring Asset Write-Off [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.2 | 0.0 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.2 | 0.4 |
Industrial Process [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 3.2 | 8.9 |
Motion Technologies [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 1.4 | 0.0 |
Interconnect Solutions [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.0 | (0.2) |
Control Technologies [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 0.9 | 0.5 |
Corporate and Other [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ 0.0 | $ 0.1 |
RESTRUCTURING ACTIONS Restructuring Accrual Rollforward (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | 15 Months Ended | |
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
Mar. 31, 2016 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | $ 20.0 | $ 21.9 | $ 21.9 | $ 21.9 |
Restructuring costs | 5.5 | 9.3 | ||
Payments for Restructuring | (6.5) | (6.6) | ||
Asset Write-Offs | (0.2) | 0.0 | ||
Restructuring Reserve, Translation Adjustment | (0.1) | (0.4) | ||
Restructuring Reserve - Ending Balance | 18.7 | 24.2 | 20.0 | 18.7 |
Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 5.1 | 8.9 | ||
Restructuring Reserve - Ending Balance | 18.4 | 22.4 | 18.4 | |
Other Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.2 | 0.4 | ||
Restructuring Reserve - Ending Balance | 0.3 | 1.8 | 0.3 | |
Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 3.2 | 8.9 | ||
Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.0 | (0.2) | ||
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 4.9 | 0.0 | 0.0 | 0.0 |
Restructuring costs | 3.2 | 8.9 | 12.2 | 15.4 |
Payments for Restructuring | (3.3) | (1.0) | ||
Asset Write-Offs | (0.2) | 0.0 | ||
Restructuring Reserve - Ending Balance | 4.6 | 7.9 | 4.9 | 4.6 |
2015 Interconnect Solutions Restructuring Actions [Member] | Interconnect Solutions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve - Beginning Balance | 9.4 | 17.1 | 17.1 | 17.1 |
Restructuring costs | 0.0 | (0.2) | 6.5 | |
Payments for Restructuring | (2.6) | (3.4) | ||
Restructuring Reserve, Translation Adjustment | 0.0 | 0.2 | ||
Restructuring Reserve - Ending Balance | $ 6.8 | $ 13.3 | $ 9.4 | $ 6.8 |
RESTRUCTURING ACTIONS Restructuring Textuals (Details) $ in Millions |
3 Months Ended | 12 Months Ended | 15 Months Ended | ||
---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
Employees
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
Employees
|
Mar. 31, 2016
USD ($)
Employees
|
Dec. 31, 2014
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | |||||
Payments for Restructuring | $ 6.5 | $ 6.6 | |||
Accrued restructuring | 18.7 | 24.2 | $ 20.0 | $ 18.7 | $ 21.9 |
Restructuring costs | 5.5 | 9.3 | |||
Industrial Process [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 3.2 | 8.9 | |||
Interconnect Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0.0 | (0.2) | |||
2015 Interconnect Solutions Restructuring Actions [Member] | Interconnect Solutions [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 100 | ||||
Payments for Restructuring | 2.6 | 3.4 | |||
Accrued restructuring | 6.8 | 13.3 | $ 9.4 | $ 6.8 | 17.1 |
Restructuring costs | $ 0.0 | (0.2) | 6.5 | ||
2015 Industrial Process Restructuring Action [Member] | Industrial Process [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Number of Positions Eliminated | Employees | 80 | 280 | |||
Payments for Restructuring | $ 3.3 | 1.0 | |||
Accrued restructuring | 4.6 | 7.9 | 4.9 | $ 4.6 | $ 0.0 |
Restructuring costs | $ 3.2 | $ 8.9 | $ 12.2 | $ 15.4 |
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 11.7 | $ 18.1 |
Effective income tax rate | 23.70% | 31.90% |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 16.0 |
EARNINGS PER SHARE DATA - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Weighted average common shares – basic | 89.6 | 90.6 |
Add: Dilutive impact of outstanding equity awards | 0.9 | 1.0 |
Diluted weighted average common shares outstanding | 90.5 | 91.6 |
EARNINGS PER SHARE DATA - Number of Shares Underlying Stock Options Excluded from the Computation of Diluted Earnings (Loss) (Detail) - $ / shares shares in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of ROIC Awards Excluded from Diluted Shares Outstanding | 0.2 | 0.2 |
Anti-dilutive stock options | 0.6 | 0.3 |
Average exercise price | $ 39.74 | $ 42.90 |
Minimum [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Years of expiration | 2024 | 2024 |
Maximum [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Years of expiration | 2026 | 2025 |
RECEIVABLES, NET - (Detail) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Trade accounts receivable | $ 587.0 | $ 554.0 |
Notes receivable | 3.0 | 3.9 |
Other | 33.5 | 43.1 |
Receivables, gross | 623.5 | 601.0 |
Less: Allowance for doubtful accounts | (16.5) | (16.1) |
Receivables, net | $ 607.0 | $ 584.9 |
INVENTORIES, NET - Components of Inventories, Net (Detail) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 46.8 | $ 60.9 |
Work in process | 63.5 | 56.0 |
Raw materials | 170.9 | 162.9 |
Inventoried costs related to long-term contracts | 47.2 | 43.0 |
Total inventory before progress payments | 328.4 | 322.8 |
Less: Progress payments | (27.1) | (30.1) |
Inventories, net | $ 301.3 | $ 292.7 |
OTHER CURRENT AND NON-CURRENT ASSETS - Components of Other Current and Non-Current Assets (Detail) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||
Asbestos-related assets | $ 74.5 | $ 74.5 | ||
Short-term investments | 68.5 | 64.9 | ||
Prepaid income taxes | 30.9 | 14.3 | ||
Other | 53.1 | 50.7 | ||
Other current assets | 227.0 | 204.4 | ||
Other employee benefit-related assets | 93.9 | 92.9 | ||
Environmental-related assets(a) | [1] | 34.2 | 10.8 | |
Capitalized software costs | 28.5 | 28.2 | ||
Other | 20.7 | 21.4 | ||
Other non-current assets | $ 177.3 | $ 153.3 | ||
|
PLANT, PROPERTY AND EQUIPMENT, NET - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 26.0 | $ 25.4 |
Machinery and equipment | 941.2 | 909.3 |
Buildings and improvements | 244.5 | 242.0 |
Furniture, fixtures and office equipment | 69.4 | 66.3 |
Construction work in progress | 31.0 | 42.3 |
Other | 6.0 | 6.7 |
Plant, property and equipment, gross | 1,318.1 | 1,292.0 |
Less: Accumulated depreciation | (875.1) | (848.5) |
Plant, property and equipment, net | $ 443.0 | $ 443.5 |
PLANT, PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 18.1 | $ 17.5 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET - Changes in the Carrying Amount of Goodwill (Detail) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | $ 778.3 |
Adjustments to Purchase Price Allocations | 1.2 |
Foreign currency | 8.1 |
Goodwill - Ending Balance | 787.6 |
Industrial Process [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 312.6 |
Adjustments to Purchase Price Allocations | 0.0 |
Foreign currency | 5.6 |
Goodwill - Ending Balance | 318.2 |
Motion Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 201.0 |
Adjustments to Purchase Price Allocations | 0.8 |
Foreign currency | 1.8 |
Goodwill - Ending Balance | 203.6 |
Interconnect Solutions [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 69.0 |
Adjustments to Purchase Price Allocations | 0.0 |
Foreign currency | 0.7 |
Goodwill - Ending Balance | 69.7 |
Control Technologies [Member] | |
Goodwill [Roll Forward] | |
Goodwill - Beginning Balance | 195.7 |
Adjustments to Purchase Price Allocations | 0.4 |
Foreign currency | 0.0 |
Goodwill - Ending Balance | $ 196.1 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET Other Intangible Assets (Detail) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Gross | $ 220.5 | $ 220.9 | |
Indefinite-lived intangible assets, Gross/Net Carrying Amount | 31.3 | 30.9 | |
Other Intangible Assets, Gross Carrying Amount | 251.8 | 251.8 | |
Accumulated Amortization | (70.6) | (64.6) | |
Finite-live intangible asset, net of accumulated amortization | 149.9 | 156.3 | |
Other intangible assets, net | 181.2 | 187.2 | |
Amortization of Intangible Assets | 5.4 | $ 2.2 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Customer Relationships, Gross Carrying Amount | 158.1 | 157.4 | |
Accumulated Amortization | (49.2) | (45.3) | |
Finite-live intangible asset, net of accumulated amortization | 108.9 | 112.1 | |
Proprietary Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Proprietary Technology, Gross Carrying Amount | 53.6 | 54.9 | |
Accumulated Amortization | (14.0) | (12.7) | |
Finite-live intangible asset, net of accumulated amortization | 39.6 | 42.2 | |
Patents and other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Patents and Other, Gross Carrying Amount | 8.8 | 8.6 | |
Accumulated Amortization | (7.4) | (6.6) | |
Finite-live intangible asset, net of accumulated amortization | $ 1.4 | $ 2.0 |
ACCRUED AND OTHER CURRENT LIABILITIES AND OTHER NON-CURRENT LIABILITIES - (Detail) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Payables and Accruals [Abstract] | ||
Compensation and other employee-related benefits | $ 122.6 | $ 138.6 |
Asbestos-related liabilities | 88.1 | 88.0 |
Customer-related liabilities | 38.9 | 38.0 |
Accrued income taxes and other tax-related liabilities | 42.2 | 30.9 |
Environmental liabilities and other legal matters | 25.0 | 24.0 |
Accrued warranty costs | 21.2 | 21.7 |
Other accrued liabilities | 47.3 | 51.5 |
Accrued liabilities | 385.3 | 392.7 |
Deferred income taxes and other tax-related accruals | 44.2 | 44.5 |
Environmental liabilities | 68.2 | 72.0 |
Compensation and other employee-related benefits | 37.9 | 35.6 |
Other(a) | 64.4 | 37.8 |
Other non-current liabilities | $ 214.7 | $ 189.9 |
DEBT Debt (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt [Line Items] | ||
Commercial paper | $ 123.0 | $ 94.5 |
Short-term loans | 151.1 | 150.0 |
Current maturities of long-term debt and capital leases | 1.1 | 1.2 |
Short-term loans and current maturities of long-term debt | 275.2 | 245.7 |
Long-term debt and capital leases | 2.7 | 2.8 |
Total debt and capital leases | $ 277.9 | $ 248.5 |
Commercial Paper [Member] | ||
Debt [Line Items] | ||
Weighted Average Interest Rate | 1.00% | 1.04% |
Line of Credit [Member] | ||
Debt [Line Items] | ||
Weighted Average Interest Rate | 1.69% | 1.55% |
POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Cost of Pension Plans and Other Employee Related Benefit Plans (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1.4 | $ 1.5 |
Interest cost | 4.6 | 4.8 |
Expected return on plan assets | (5.2) | (5.3) |
Amortization of prior service cost (benefit) | (1.4) | (2.5) |
Amortization of net actuarial loss | 3.1 | 3.2 |
Total net periodic benefit cost | 2.5 | 1.7 |
Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1.2 | 1.3 |
Interest cost | 3.4 | 3.6 |
Expected return on plan assets | (5.0) | (5.1) |
Amortization of prior service cost (benefit) | 0.2 | 0.2 |
Amortization of net actuarial loss | 1.9 | 2.1 |
Total net periodic benefit cost | 1.7 | 2.1 |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.2 | 0.2 |
Interest cost | 1.2 | 1.2 |
Expected return on plan assets | (0.2) | (0.2) |
Amortization of prior service cost (benefit) | (1.6) | (2.7) |
Amortization of net actuarial loss | 1.2 | 1.1 |
Total net periodic benefit cost | $ 0.8 | $ (0.4) |
POSTRETIREMENT BENEFIT PLANS Postretirement Textuals (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Defined Benefit Plan, Contributions by Employer | $ 3.3 | $ 2.6 |
Reclassification of Postretirement Costs from AOCI, Net of Tax | 1.1 | $ 0.5 |
Minimum [Member] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 10.0 | |
Maximum [Member] | ||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 15.0 |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Employee Compensation Costs (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Share-based compensation expense, equity-based awards | $ 2.9 | $ 3.1 |
Share-based compensation expense, liability-based awards | 0.5 | 0.2 |
Total share-based compensation expense in operating income (loss) | $ 3.4 | $ 3.3 |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | 10 years | |
Stock options exercised | 0.3 | 0.1 |
Proceeds from the exercise of stock options | $ 6.1 | $ 2.0 |
Restricted stock vested during period | 0.2 | 0.2 |
Equity Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost not yet recognized | $ 32.3 | |
Unrecognized compensation cost weighted-average period | 2 years 4 months 10 days | |
Liability Based Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost not yet recognized | $ 3.5 | |
Unrecognized compensation cost weighted-average period | 2 years 4 months 10 days | |
Performance Stock Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock vested during period | 0.2 |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Summary of Long-Term Incentive Plan Awards (Detail) shares in Millions |
3 Months Ended |
---|---|
Mar. 31, 2016
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant Date Fair Value | $ 9.16 |
NQOs [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.4 |
Grant Date Fair Value | $ 9.16 |
Restricted Stock Unit [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.3 |
Grant Date Fair Value | $ 33.01 |
PSU [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of Awards Granted | shares | 0.2 |
Grant Date Fair Value | $ 33.27 |
LONG-TERM INCENTIVE EMPLOYEE COMPENSATION - Weighted Average Assumptions (Detail) |
3 Months Ended |
---|---|
Mar. 31, 2016
$ / shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Dividend yield | 1.50% |
Expected volatility | 32.20% |
Expected life (in years) | 6 years 13 days |
Risk-free rates | 1.50% |
Grant Date Fair Value | $ 9.16 |
CAPITAL STOCK - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 113 Months Ended | |
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2016 |
|
Equity, Class of Treasury Stock [Line Items] | |||
Share repurchase program | $ 1,000.0 | $ 1,000.0 | |
Repurchase of shares of common stock | 2.0 | ||
Aggregate cost of repurchase | $ 80.0 | ||
Number of shares repurchased under settlement of employee tax withholding obligations | 0.2 | 0.1 | |
Shares repurchased aggregate value under settlement of employee tax withholding obligations | $ 6.9 | $ 3.6 | |
2006 Share Repurchase Program [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase of shares of common stock | 18.4 | ||
Aggregate cost of repurchase | $ 759.3 |
COMMITMENTS AND CONTINGENCIES Rollforward of Asbestos Claims (Detail) - Asbestos Issue [Member] Claim in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2016
Claim
| |
Asbestos Claims [Rollforward] | |
Pending claims – Beginning | 37 |
New claims | 1 |
Dismissals | (2) |
Pending claims – Ending | 36 |
Active [Member] | |
Asbestos Claims [Rollforward] | |
Pending claims – Ending | 36 |
COMMITMENTS AND CONTINGENCIES Asbestos Related Expenses (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Asbestos Related Contingencies [Line Items] | ||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 15.4 | |
Gain From Asbestos Insurance Settlement Agreement | (2.6) | |
Asbestos-related (benefit) costs, net | 12.8 | $ 15.4 |
Liability [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 17.8 | |
Gain From Asbestos Insurance Settlement Agreement | 0.0 | |
Assets [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | (2.4) | |
Gain From Asbestos Insurance Settlement Agreement | $ (2.6) |
COMMITMENTS AND CONTINGENCIES Roll Forward of Asbestos Liability and Related Assets (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Dec. 31, 2015 |
|
Net Asbestos Liability Rollforward [Line Items] | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | $ (630.8) | |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | (15.4) | |
Gain From Asbestos Insurance Settlement Agreement | 2.6 | |
Increase Decrease Net Cash Activity | 4.3 | |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | (639.3) | |
Asbestos-related liabilities Current | 88.1 | $ 88.0 |
Asbestos-related liabilities Non-Current | 957.0 | 954.8 |
Asbestos-related assets Current | 74.5 | 74.5 |
Asbestos-related assets Non-Current | 331.3 | $ 337.5 |
Liability [Member] | ||
Net Asbestos Liability Rollforward [Line Items] | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | (1,042.8) | |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | (17.8) | |
Gain From Asbestos Insurance Settlement Agreement | 0.0 | |
Increase Decrease Net Cash Activity | 15.5 | |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | (1,045.1) | |
Assets [Member] | ||
Net Asbestos Liability Rollforward [Line Items] | ||
Asbestos Liability And Related Assets Net Current And Noncurrent - Beginning | 412.0 | |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 2.4 | |
Gain From Asbestos Insurance Settlement Agreement | 2.6 | |
Increase Decrease Net Cash Activity | (11.2) | |
Asbestos Liability And Related Assets Net Current And Noncurrent - Ending | $ 405.8 |
COMMITMENTS AND CONTINGENCIES Asbestos Matters Textuals (Details) Claim in Thousands, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016
USD ($)
Claim
|
Dec. 31, 2015
USD ($)
Claim
|
|
Asbestos Related Contingencies [Line Items] | ||
Asbestos Liability Measurement Periods for Claims Pending and Estimated to be Filed | 10 years | |
Gain From Asbestos Insurance Settlement Agreement | $ 2.6 | |
Asbestos Liability And Related Assets Net Current And Noncurrent | 639.3 | $ 630.8 |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ 15.4 | |
Asbestos Issue [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Pending Asbestos Claims | Claim | 36 | 37 |
Asbestos Issue [Member] | Active [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Pending Asbestos Claims | Claim | 36 | |
Liability [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Gain From Asbestos Insurance Settlement Agreement | $ 0.0 | |
Asbestos Liability And Related Assets Net Current And Noncurrent | 1,045.1 | $ 1,042.8 |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | 17.8 | |
Assets [Member] | ||
Asbestos Related Contingencies [Line Items] | ||
Gain From Asbestos Insurance Settlement Agreement | 2.6 | |
Asbestos Liability And Related Assets Net Current And Noncurrent | (405.8) | $ (412.0) |
Asbestos Related Costs (Benefit), Provision to Maintain 10-Year Forecast Period | $ (2.4) |
COMMITMENTS AND CONTINGENCIES Rollforward of Environmental Liability and Related Assets (Detail) - Liability [Member] - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Loss Contingency Accrual [Roll Forward] | ||
Environmental liability - Beginning balance | $ 82.6 | $ 89.9 |
Net Cash Activity | (5.1) | (4.4) |
Foreign exchange translation | 0.1 | (0.3) |
Environmental liability - Ending balance | 78.8 | 85.4 |
Continuing Operations [Member] | ||
Loss Contingency Accrual [Roll Forward] | ||
Changes In Pre-Existing Environmental Accruals | 0.7 | 0.2 |
Discontinued Operations [Member] | ||
Loss Contingency Accrual [Roll Forward] | ||
Changes In Pre-Existing Environmental Accruals | $ 0.5 | $ 0.0 |
COMMITMENTS AND CONTINGENCIES Range of Environmental Liability and Number of Active Sites (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2016
USD ($)
site
|
Dec. 31, 2015
USD ($)
|
|
Site Contingency [Line Items] | ||
Environmental-Related Receivable from Other Third Parties | $ 2.0 | |
Recorded Third-Party Environmental Recoveries Receivable | 34.2 | $ 12.8 |
Environmental Related Matters [Member] | ||
Site Contingency [Line Items] | ||
Settlement Agreement with Insurer, Total Amount Received | 34.2 | |
Settlement Agreement with Insurer, Amount Received in Cash | 2.0 | |
Settlement Agreement with Insurer, Amount Deposited in Qualified Settlement Fund | 32.2 | |
Settlement Agreement with Insurer, Deferred Income | $ 23.0 | |
Number Of Active Environmental Investigation And Remediation Sites | site | 47 | |
Loss Contingency, Range of Possible Loss, Maximum | $ 134.0 |
ACQUISITIONS (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
Oct. 05, 2015 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 787.6 | $ 778.3 | |
Wolverine Advanced Materials Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 8.5 | ||
Receivables | 31.6 | ||
Inventory | 35.0 | ||
Plant, property and equipment | 22.8 | ||
Goodwill | 162.5 | ||
Other intangible assets | 87.0 | ||
Other assets | 3.3 | ||
Accounts payable and accrued liabilities | (21.2) | ||
Postretirement liabilities | 14.6 | ||
Other liabilities | (8.1) | ||
Net assets acquired | $ 306.8 |
ACQUISITIONS Acquisitions Textuals (Details) $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Oct. 05, 2015
USD ($)
|
Mar. 31, 2016
USD ($)
Employees
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0.2 | $ 0.0 | |||
Goodwill | $ 787.6 | $ 778.3 | |||
Wolverine Advanced Materials Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 05, 2015 | ||||
Business Acquisition, Name of Acquired Entity | Wolverine Automotive Holdings Inc. | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 298.3 | ||||
Number of Employees at Acquired Entity | Employees | 500 | ||||
Revenue of Acquired Entity for Last Annual Period | $ 154.0 | ||||
Revenue of Acquired Entity from ITT | $ 17.0 | ||||
Goodwill | $ 162.5 |
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