10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                     to                     

Commission File Number 1-898

AMPCO-PITTSBURGH CORPORATION

Pennsylvania	25-1117717
(State of Incorporation)	(I.R.S. Employer Identification No.)

726 Bell Avenue, Suite 301

Carnegie, Pennsylvania 15106

(Address of principal executive offices)

(412) 456-4400

(Registrant’s telephone number)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter periods that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “accelerated filer”, “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	¨	Accelerated filer	x
Non-accelerated filer	¨	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

On May 2, 2016, 12,216,578 common shares were outstanding.

AMPCO-PITTSBURGH CORPORATION

INDEX

			Page No.
Part I – Financial Information:
	Item 1 –	Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets – March 31, 2016 and December 31, 2015		3
		Condensed Consolidated Statements of Operations – Three Months Ended March 31, 2016 and 2015		4
		Condensed Consolidated Statements of Comprehensive (Loss) Income – Three Months Ended March 31, 2016 and 2015		5
		Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2016 and 2015		6
		Notes to Condensed Consolidated Financial Statements		7
	Item 2 –	Management’s Discussion and Analysis of Financial Condition and Results of Operations		19
	Item 3 –	Quantitative and Qualitative Disclosures About Market Risk		21
	Item 4 –	Controls and Procedures		22
Part II – Other Information:				23
	Item 1 –	Legal Proceedings		23
	Item 1A –	Risk Factors		23
	Item 6 –	Exhibits		23
	Signatures			24
	Exhibit Index			25
	Exhibits
		Exhibit 10.1
		Exhibit 10.2
		Exhibit 10.3
		Exhibit 10.4
		Exhibit 31.1
		Exhibit 31.2
		Exhibit 32.1
		Exhibit 32.2
		Exhibit 101

2

PART I – FINANCIAL INFORMATION

AMPCO-PITTSBURGH CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in thousands, except par value)

	March 31, 2016			December 31, 2015
Assets
Current assets:
Cash and cash equivalents	$	60,141		$	95,122
Receivables, less allowance for doubtful accounts of $998 in 2016 and $983 in 2015		67,971			44,877
Inventories		93,978			59,734
Insurance receivables – asbestos		17,000			17,000
Other current assets		12,102			2,949
Total current assets		251,192			219,682
Property, plant and equipment, net		213,064			146,913
Insurance receivables – asbestos		105,748			108,423
Deferred income tax assets		30,529			20,569
Investments in joint ventures		3,069			3,097
Intangible assets – net		17,371			1,193
Goodwill		36,058			0
Other noncurrent assets		6,591			6,279
Total assets	$	663,622		$	506,156
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable	$	37,890		$	13,959
Accrued payrolls and employee benefits		18,487			9,183
Debt – current portion		19,364			13,311
Asbestos liability – current portion		21,000			21,000
Other current liabilities		48,049			23,880
Total current liabilities		144,790			81,333
Employee benefit obligations		102,228			63,702
Asbestos liability		144,822			148,849
Noncurrent debt		28,248			0
Other noncurrent liabilities		729			849
Total liabilities		420,817			294,733
Commitments and contingent liabilities (Note 7)
Shareholders’ equity:
Common stock – par value $1; authorized 20,000 shares; issued and outstanding 12,217 shares in 2016 and 10,440 in 2015		12,217			10,440
Additional paid-in capital		149,541			128,840
Retained earnings		125,672			129,742
Accumulated other comprehensive loss		(56,209	)		(57,599	)
Total Ampco-Pittsburgh shareholders’ equity		231,221			211,423
Noncontrolling interest		11,584			0
Total shareholders’ equity		242,805			211,423
Total liabilities and shareholders’ equity	$	663,622		$	506,156

See Notes to Condensed Consolidated Financial Statements.

3

AMPCO-PITTSBURGH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(in thousands, except per share amounts)

	Three Months Ended March 31,
	2016			2015
Net sales	$	63,578		$	65,087
Operating costs and expenses:
Costs of products sold (excluding depreciation and amortization)		51,105			52,044
Selling and administrative		13,508			9,396
Depreciation and amortization		3,925			3,142
Loss on disposal of assets		3			3
Total operating expenses		68,541			64,585
(Loss) income from operations		(4,963	)		502
Other income (expense):
Investment-related income		45			45
Interest expense		(242	)		(59	)
Other – net		1,164			(366	)
		967			(380	)
(Loss) income before income taxes and equity losses in Chinese joint venture		(3,996	)		122
Income tax benefit (provision)		850			(40	)
Equity gains (losses) in Chinese joint venture		172			(10	)
Net (loss) income		(2,974	)		72
Less: Net loss attributable to noncontrolling interest		(84	)		0
Net (loss) income attributable to Ampco-Pittsburgh shareholders	$	(2,890	)	$	72
Net (loss) income per common share attributable to Ampco-Pittsburgh:
Basic	$	(0.26	)	$	0.01
Diluted	$	(0.26	)	$	0.01
Cash dividends declared per share	$	0.09		$	0.18
Weighted average number of common shares outstanding:
Basic		11,006			10,426
Diluted		11,006			10,464

See Notes to Condensed Consolidated Financial Statements.

4

AMPCO-PITTSBURGH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2016			2015
Net (loss) income	$	(2,974	)	$	72
Other comprehensive income, net of tax where applicable:
Adjustments for changes in:
Foreign currency translation		(315	)		(3,741	)
Unrecognized employee benefit costs (including effects of foreign currency translation)		649			5,453
Unrealized holding gains on marketable securities		148			4
Fair value of cash flow hedges		18			(85	)
Reclassification adjustments for items included in net income:
Amortization of unrecognized employee benefit costs		785			1,874
Realized gains on sale of marketable securities		(30	)		0
Realized losses from settlement of cash flow hedges		135			115
Other comprehensive income		1,390			3,620
Comprehensive (loss) income		(1,584	)		3,692
Less: Comprehensive loss attributable to noncontrolling interest		(83	)		0
Comprehensive (loss) income attributable to Ampco-Pittsburgh	$	(1,501	)	$	3,692

See Notes to Condensed Consolidated Financial Statements.

5

AMPCO-PITTSBURGH CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(in thousands)

	Three Months Ended March 31,
	2016			2015
Net cash flows (used in) provided by operating activities	$	(5,039	)	$	2,080
Cash flows from investing activities:
Purchases of property, plant and equipment		(562	)		(2,493	)
Proceeds from the sale of property, plant and equipment		7			0
Purchase of Åkers, net of cash acquired (Note 2)		(27,031	)		0
Purchases of long-term marketable securities		(246	)		(39	)
Proceeds from the sale of long-term marketable securities		193			20
Net cash flows used in investing activities		(27,639	)		(2,512	)
Cash flows from financing activities:
Dividends paid		(1,879	)		(1,877	)
Net cash flows used in financing activities		(1,879	)		(1,877	)
Effect of exchange rate changes on cash and cash equivalents		(424	)		(790	)
Net decrease in cash and cash equivalents		(34,981	)		(3,099	)
Cash and cash equivalents at beginning of period		95,122			97,098
Cash and cash equivalents at end of period	$	60,141		$	93,999
Supplemental information:
Income tax payments	$	3,000		$	2,772
Interest payments	$	61		$	59
Non-cash investing activities:
Purchases of property, plant and equipment included in accounts payable	$	152		$	656
Non-cash financing activities:
Issuance of common stock to acquire net assets of Åkers (Note 2)	$	22,137		$	0
Issuance of debt to acquire net assets of Åkers (Note 2)	$	25,710		$	0

See Notes to Condensed Consolidated Financial Statements.

6

AMPCO-PITTSBURGH CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(in thousands, except claim amounts)

1. Unaudited Condensed Consolidated Financial Statements

The condensed consolidated balance sheet as of March 31, 2016 and the condensed consolidated statements of operations, comprehensive (loss) income and cash flows for the three months ended March 31, 2016 and 2015 have been prepared by Ampco-Pittsburgh Corporation (the “Corporation”) without audit. In the opinion of management, all adjustments, consisting of only normal and recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the periods presented, have been made. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the operating results expected for the full year.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a common revenue standard for U.S. GAAP and IFRS. The guidance establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from a company’s contracts with customers. It requires companies to apply a five-step model when recognizing revenue relating to the transfer of goods or services to customers in an amount that reflects the consideration that the company expects to be entitled to receive for those goods and services. It also requires comprehensive disclosures regarding revenue recognition. The guidance becomes effective January 1, 2018. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, which revises the measurement of inventory at the lower of cost or market. Currently, market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. In accordance with ASU 2015-11, an entity will measure inventory at the lower of cost and net realizable value which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The amendment does not apply to inventory that is measured using last-in, first out (LIFO). The guidance becomes effective January 1, 2017 with earlier application permitted. The Corporation does not expect the guidance will have a significant impact on its financial position, operating results and liquidity.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors will remain similar to existing generally accepted accounting principles. The guidance becomes effective January 1, 2019. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and will be applied on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retroactively or prospectively. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; however, early adoption is permitted if all provisions are adopted in the same period. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

7

2. Acquisition of Åkers

On March 3, 2016, the Corporation acquired the stock of Åkers AB and certain of its affiliated companies, including Åkers AB’s 60% equity interest in a Chinese joint venture company (collectively, “Åkers”) from Altor Fund II GP Limited. The base purchase price as of the date of acquisition, subject to certain post-closing adjustments, approximated $77,246 and was comprised of $29,399 in cash, $25,710 in the form of a three-year note, and 1,776,604 shares of common stock of the Corporation which, based on the closing price of the Corporation’s common stock as of the date of closing, had a fair value of $22,137. The note bears interest at 6.5%, compounding annually, with principal and interest payable at maturity on March 3, 2019.

The acquisition adds roll production facilities in Sweden, the United States, Slovenia, and China; 14 sales offices; and a service capability in the United States. It enables cast roll production in the United States, forged roll production in Europe, and a low-cost product alternative for customers. The Corporation’s financial position as of March 31, 2016 includes the acquired assets and assumed liabilities of Åkers at their estimated fair value. Operating results of the acquired entities are included in the Forged and Cast Engineered Products segment. For March 2016, net sales for Åkers approximated $12,583 and loss before income taxes including the effects of purchase accounting approximated $1,006. Acquisition-related transaction costs of approximately $1,800 relating principally to the purchase of Åkers are included in selling and administrative costs.

The estimated fair value of assets acquired and liabilities assumed as of the date of acquisition is summarized below and subject to final adjustments primarily for intangible assets, pre-acquisition contingencies, deferred income taxes and residual goodwill. Goodwill is not amortized for book purposes or deductible for tax purposes. Goodwill is assessed for impairment annually in connection with the Corporation’s strategic planning process or whenever events or circumstances indicate the carrying amount of the asset may not be recoverable.

Current assets (excluding inventories)	$	40,703
Inventories		29,863
Property, plant and equipment		68,140
Intangible assets		15,972
Other noncurrent assets		7,391
Current liabilities		(66,651	)
Noncurrent liabilities		(42,219	)
Net assets acquired		53,199
Noncontrolling interest		(11,666	)
Goodwill		35,713
Base purchase price	$	77,246

These fair value estimates are provisional amounts based on third party valuations that are currently under review. The estimated fair value of acquired intangible assets consists of $6,400 for developed technology, $6,016 for customer relationships, and $3,556 for trade name. The economic life of the acquired intangible assets is estimated to be 5 years for developed technology, 10 years for customer relationships, and indefinite for the trade name. Included in current liabilities is a loan payable to the noncontrolling shareholder of the Chinese joint venture company which, with accrued interest, approximated $7,468 as of the date of acquisition. The interest rate is equal to the “benchmark lending rate” set by the People’s Bank of China. Both the loan and interest were payable as of December 31, 2015 but remain unpaid.

Pro Forma Financial Information for the Åkers Acquisition (unaudited):

The financial information in the table below summarizes the combined results of operations of the Corporation and Åkers on a pro forma basis, for the period in which the acquisition occurred as though the companies had been combined as of the beginning of that period. Pro forma adjustments have been made to (1) include amortization expense on the definite-lived intangible assets identified in the acquisition and interest expense on the note and (2) remove debt-related expenses associated with Åkers’ previous debt facilities not assumed by the Corporation. The following pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred at the beginning of the period presented:

	Three Months Ended March, 31
	2016			2015
Net sales	$	85,128		$	106,610
Loss before income taxes (includes noncontrolling interest)	$	(9,778	)	$	(6,733	)

3. Inventories

At March 31, 2016 and December 31, 2015, approximately 51% and 60% respectively, of the inventories were valued on the LIFO method with the remaining inventories valued on the FIFO method. Inventories were comprised of the following:

	March 31, 2016		December 31, 2015
Raw materials	$	22,744	$	18,314
Work-in-process		34,230		21,583
Finished goods		25,016		9,897
Supplies		11,988		9,940
	$	93,978	$	59,734

8

4. Property, Plant and Equipment

Property, plant and equipment were comprised of the following:

	March 31, 2016			December 31, 2015
Land and land improvements	$	10,323		$	5,223
Buildings		65,027			44,570
Machinery and equipment		310,200			266,358
Construction-in-progress		4,669			3,566
Other		6,775			7,774
		396,994			327,491
Accumulated depreciation		(183,930	)		(180,578	)
	$	213,064		$	146,913

Land and buildings of Union Electric Steel UK Limited (“UES-UK”) equal to approximately $2,905 (£2,022) at March 31, 2016 are held as collateral by the trustees of the UES-UK defined benefit pension plan (see Note 6).

5. Other Current Liabilities

Other current liabilities were comprised of the following:

	March 31, 2016		December 31, 2015
Customer-related liabilities	$	28,137	$	12,195
Accrued interest payable		2,237		3
Accrued sales commissions		1,253		1,506
Income taxes payable		3,449		3,256
Other		12,973		6,920
	$	48,049	$	23,880

Included in customer-related liabilities are costs expected to be incurred with respect to product warranties. Changes in the liability for product warranty claims consisted of the following:

	Three Months Ended March 31,
	2016			2015
Balance at beginning of the period	$	6,358		$	6,672
Åkers – opening balance sheet liability for warranty claims		6,032			0
Satisfaction of warranty claims		(558	)		(331	)
Provision for warranty claims		613			748
Other, primarily impact from changes in foreign currency exchange rates		135			(153	)
Balance at end of the period	$	12,580		$	6,936

6. Pension and Other Postretirement Benefits

Contributions were as follows:

	Three Months Ended March 31,
	2016		2015
Foreign defined benefit pension plans	$	430	$	427
Other postretirement benefits (e.g. net payments)	$	241	$	164
U.K. defined contribution pension plan	$	62	$	96
U.S. defined contribution plan	$	503	$	0

9

In 2015, the U.S. Defined Benefit Plan was amended to freeze benefit accruals and participation in the plan for non-union hourly and salaried participants and, effective January 1, 2016, for employees of the Union Electric Steel Carnegie Steelworkers Location. Benefits under the plan were replaced with employer contributions equaling a 3% base contribution and a matching contribution of up to 4% to the defined contribution plan. The plan changes resulted in a curtailment loss of $1,217 for the three months ended March 31, 2015. Additionally, as part of the Åkers acquisition, the Corporation assumed the obligations for two U.S. defined benefit pension plans, two foreign retirement benefit plans and two other postretirement benefit plans. None of the acquired benefit plans were fully funded as of the acquisition date.

Net periodic pension and other postretirement costs include the following components:

	Three Months Ended March 31,
U.S. Defined Benefit Pension Plans	2016			2015
Service cost	$	346		$	1,130
Interest cost		2,258			2,070
Expected return on plan assets		(3,011	)		(2,741	)
Amortization of prior service cost		105			138
Amortization of actuarial loss		1,128			1,463
Curtailment charge		0			1,217
Net benefit costs	$	826		$	3,277
	Three Months Ended March 31,
Foreign Defined Benefit Pension Plans	2016			2015
Service cost	$	31		$	0
Interest cost		568			597
Expected return on plan assets		(647	)		(668	)
Amortization of actuarial loss		176			210
Net benefit costs	$	128		$	139
	Three Months Ended March 31,
Other Postretirement Benefit Plans	2016			2015
Service cost	$	158		$	75
Interest cost		200			112
Amortization of prior service cost		(258	)		(168	)
Amortization of actuarial loss		37			58
Net benefit costs	$	137		$	77

7. Commitments and Contingent Liabilities

Outstanding standby and commercial letters of credit as of March 31, 2016 approximated $22,080, the majority of which serve as collateral for the Industrial Revenue Bond (“IRB”) debt. In addition, in connection with the acquisition of Åkers, the Corporation issued two surety bonds to PRJ Pensionsgaranti, guaranteeing certain obligations of Åkers Sweden AB and Åkers AB under the credit insurance policy relating to pension commitments. The total amount covered by the guarantees is approximately $4,200 (SEK 33,900).

See Note 8 for derivative instruments, Note 13 for litigation and Note 14 for environmental matters.

8. Derivative Instruments

Certain of the Corporation’s operations are subject to risk from exchange rate fluctuations in connection with sales in foreign currencies. To minimize this risk, foreign currency sales contracts are entered into which are designated as cash flow or fair value hedges. As of March 31, 2016, approximately $14,458 of anticipated foreign-denominated sales has been hedged which are covered by fair value contracts settling at various dates through April 2017. The fair value of assets held as collateral for the fair value contracts as of March 31, 2016 approximated $718.

10

Additionally, certain of the divisions of the Air and Liquid Processing segment are subject to risk from increases in the price of commodities (copper and aluminum) used in the production of inventory. To minimize this risk, futures contracts are entered into which are designated as cash flow hedges. At March 31, 2016, approximately 43% or $2,486 of anticipated copper purchases over the next 15 months and 56% or $386 of anticipated aluminum purchases over the next six months are hedged.

The Corporation previously entered into foreign currency purchase contracts to manage the volatility associated with Euro-denominated progress payments to be made for certain machinery and equipment. As of December 31, 2010, all contracts had been settled and the underlying fixed assets were placed in service.

No portion of the existing cash flow or fair value hedges is considered to be ineffective, including any ineffectiveness arising from the unlikelihood of an anticipated transaction to occur. Additionally, no amounts have been excluded from assessing the effectiveness of a hedge.

At March 31, 2016, the Corporation has purchase commitments covering 44% or $1,976 of anticipated natural gas usage through 2017 at one of its subsidiaries. The commitments qualify as normal purchases and, accordingly, are not reflected on the condensed consolidated balance sheet. Purchases of natural gas under previously existing commitments approximated $823 and $781 for the three months ended March 31, 2016 and 2015, respectively.

The Corporation does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

Gains (losses) on foreign exchange transactions included in other income (expense) approximated $1,173 and $(380) for the three months ended March 31, 2016 and 2015, respectively.

The location and fair value of the foreign currency sales contracts recorded on the condensed consolidated balance sheets were as follows:

	Location	March 31, 2016		December 31, 2015
Cash flow hedge contracts	Other current assets	$	0	$	10
Fair value hedge contracts	Other current assets		1		113
	Other noncurrent assets		0		0
	Other current liabilities		564		258
	Other noncurrent liabilities		60		49
Fair value hedged items	Receivables		134		27
	Other current assets		404		255
	Other noncurrent assets		54		39
	Other current liabilities		3		116
	Other noncurrent liabilities		0		0

The change in the fair value of the cash flow contracts is recorded as a component of accumulated other comprehensive loss. The balances as of March 31, 2016 and 2015 and the amount recognized as and reclassified from accumulated other comprehensive loss for each of the periods is summarized below. All amounts are after-tax.

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Three Months Ended March 31, 2016	Comprehensive Income (Loss) Beginning of the Year			Plus Recognized as Comprehensive Income (Loss)			Less Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss			Comprehensive Income (Loss) End of the Period
Foreign currency sales contracts	$	4		$	3		$	7		$	0
Foreign currency purchase contracts		241			0			4			237
Futures contracts – copper and aluminum		(200	)		15			(146	)		(39	)
	$	45		$	18		$	(135	)	$	198
Three Months Ended March 31, 2015
Foreign currency sales contracts	$	0		$	(2	)	$	0		$	(2	)
Foreign currency purchase contracts		258			0			5			253
Futures contracts – copper and aluminum		(173	)		(83	)		(120	)		(136	)
	$	85		$	(85	)	$	(115	)	$	115

The change in fair value reclassified or expected to be reclassified from accumulated other comprehensive loss to earnings is summarized below. All amounts are pre-tax.

	Location of Gain (Loss) in Statements	Estimated to be Reclassified in the Next			Three Months Ended March 31,
	of Operations	12 Months			2016			2015
Foreign currency sales contracts – cash flow hedges	Net sales	$	0		$	10		$	0
Foreign currency purchase contracts	Depreciation		27			7			7
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)		(63	)		(236	)		(194	)

9. Accumulated Other Comprehensive Loss

Net change and ending balances for the various components of accumulated other comprehensive loss as of and for the three months ended March 31, 2016 and 2015 is summarized below. All amounts are net of tax, where applicable.

	Foreign Currency Translation Adjustments			Unrecognized Employee Benefit Costs			Unrealized Holding Gains on Marketable Securities		Cash Flow Hedges		Accumulated Other Comprehensive Loss
Balance at January 1, 2016	$	(8,393	)	$	(49,943	)	$	692	$	45	$	(57,599	)
Net Change		315			1,434			118		153		1,390
Balance at March 31, 2016	$	(8,708	)	$	(48,509	)	$	810	$	198	$	(56,209	)
Balance at January 1, 2015	$	(4,426	)	$	(65,396	)	$	984	$	85	$	(68,753	)
Net Change		(3,741	)		7,327			4		30		3,620
Balance at March 31, 2015	$	(8,167	)	$	(58,069	)	$	988	$	115	$	(65,133	)

12

The following summarizes the line items affected on the condensed consolidated statements of operations for components reclassified from accumulated other comprehensive loss. Amounts in parentheses represent credits to net income.

	Three Months Ended March 31,
	2016			2015
Amortization of unrecognized employee benefit costs:
Costs of products sold (excluding depreciation)	$	725		$	1,281
Selling and administrative		323			1,595
Other income (expense)		140			42
Total before income tax		1,188			2,918
Income tax provision		(403	)		(1,044	)
Net of tax	$	785		$	1,874
Realized gains on sale of marketable securities:
Selling and administrative	$	(46	)	$	0
Income tax provision		16			0
Net of tax	$	(30	)	$	0
Realized (gains) losses from settlement of cash flow hedges:
Net sales (foreign currency sales contracts)	$	(10	)	$	0
Depreciation (foreign currency purchase contracts)		(7	)		(7	)
Costs of products sold (excluding depreciation) (futures contracts – copper and aluminum)		236			194
Total before income tax		219			187
Income tax provision		(84	)		(72	)
Net of tax	$	135		$	115

The income tax expense (benefit) associated with the various components of other comprehensive income for the three months ended March 31, 2016 and 2015 is summarized below. Foreign currency translation adjustments exclude the effect of income taxes since earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time.

	Three Months Ended March 31,
	2016			2015
Tax expense (benefit) associated with changes in:
Unrealized employee benefit costs	$	(398	)	$	(2,429	)
Unrealized holding gains on marketable securities		(77	)		(2	)
Fair value of cash flow hedges		(9	)		50
Tax expense (benefit) associated with reclassification adjustments:
Amortization of unrecognized employee benefit costs		(403	)		(1,044	)
Realized gains from sale of marketable securities		16			0
Realized losses from settlement of cash flow hedges		(84	)		(72	)

10. Stock-Based Compensation

In May 2011, the shareholders of the Corporation approved the adoption of the Ampco-Pittsburgh Corporation 2011 Omnibus Incentive Plan (the “Predecessor Plan”) which authorized the issuance of up to 1,000,000 shares of the Corporation’s common stock for grants of equity-based compensation under the plan. In May 2016, the shareholders of the Corporation approved the adoption of the Ampco-Pittsburgh Corporation 2016 Omnibus Incentive Plan (the “Incentive Plan”), which authorizes the issuance of up to 1,100,000 shares of the Corporation’s common stock for awards under the Incentive Plan. The Incentive Plan replaces the Predecessor Plan and no new awards will be granted under the Predecessor Plan. Any awards outstanding under the Predecessor Plan will remain subject to and be paid under the Predecessor Plan, and any shares subject to outstanding awards under the Predecessor Plan that subsequently expire, terminate, or are surrendered or forfeited for any reason without issuance of shares will automatically become available for issuance under the Incentive Plan.

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Awards under the Incentive Plan may include incentive non-qualified stock options, stock appreciation rights, restricted shares and restricted stock units, performance awards, other stock-based awards or short-term cash incentive awards. If any award is canceled, terminates, expires or lapses for any reason prior to the issuance of shares, or if shares are issued under the Incentive Plan and thereafter are forfeited to the Corporation, the shares subject to such awards and the forfeited shares will not count against the aggregate number of shares available under the Incentive Plan. Shares tendered or withheld to pay the option exercise price or tax withholding will continue to count against the aggregate number of shares of common stock available for grant under the Incentive Plan. Any shares repurchased by the Corporation with cash proceeds from the exercise of options will not be added back to the pool of shares available for grant under the Incentive Plan.

The Incentive Plan may be administered by the Board of Directors or the Compensation Committee of the Board of Directors. The Compensation Committee has the authority to determine, within the limits of the express provisions of the Incentive Plan, the individuals to whom the awards will be granted and the nature, amount and terms of such awards.

The Incentive Plan also provides for equity-based awards during any one year to non-employee members of the Board of Directors, based on the grant date fair value, not to exceed $200. The limit does not apply to shares received by a non-employee director at his or her election in lieu of all or a portion of the director’s retainer for board service. In May 2016, 32,090 shares of the Corporation’s common stock were granted to the non-employee directors.

Stock-based compensation expense for the three months ended March 31, 2016 and 2015 equaled $329 and $225, respectively. The related income tax benefit recognized in the condensed consolidated statements of operations for each of the periods was approximately $115 and $79, respectively.

11. Fair Value

The Corporation’s financial assets and liabilities that are reported at fair value in the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 were as follows:

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
As of March 31, 2016
Investments
Other noncurrent assets	$	3,829	$	0	$	0	$	3,829
Foreign currency exchange contracts
Other current assets		0		405		0		405
Other noncurrent assets		0		54		0		54
Other current liabilities		0		567		0		567
Other noncurrent liabilities		0		60		0		60
As of December 31, 2015
Investments
Other noncurrent assets	$	3,663	$	0	$	0	$	3,663
Foreign currency exchange contracts
Other current assets		0		378		0		378
Other noncurrent assets		0		39		0		39
Other current liabilities		0		374		0		374
Other noncurrent liabilities		0		49		0		49

The investments held as other noncurrent assets represent assets held in a “Rabbi” trust for the purpose of providing benefits under a non-qualified defined benefit pension plan. The fair value of the investments is based on quoted prices of the investments in active markets. The fair value of foreign currency exchange contracts is determined based on the fair value of similar contracts with similar terms and remaining maturities. The fair value of futures contracts is based on market quotations. The fair value of the variable-rate IRB debt approximates its carrying value. Additionally, the fair value of trade receivables and trade payables approximates their carrying value.

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12. Business Segments

Presented below are the net sales and (loss) income before income taxes for the Corporation’s two business segments.

	Three Months Ended March 31,
	2016			2015
Net sales:
Forged and Cast Engineered Products	$	41,527		$	42,773
Air and Liquid Processing		22,051			22,314
Total Reportable Segments	$	63,578		$	65,087
(Loss) income before income taxes:
Forged and Cast Engineered Products	$	(2,470	)	$	1,627
Air and Liquid Processing		2,634			2,073
Total Reportable Segments		164			3,700
Other expense, including corporate costs		(4,160	)		(3,578	)
Total	$	(3,996	)	$	122

13. Litigation (claims not in thousands)

The Corporation and its subsidiaries are involved in various claims and lawsuits incidental to their businesses and are also subject to asbestos litigation as described below.

Asbestos Litigation

Claims have been asserted alleging personal injury from exposure to asbestos-containing components historically used in some products of predecessors of Air & Liquid Systems Corporation (“Asbestos Liability”). Those subsidiaries, and in some cases the Corporation, are defendants (among a number of defendants, often in excess of 50) in cases filed in various state and federal courts.

Asbestos Claims

The following table reflects approximate information about the claims for Asbestos Liability against the subsidiaries and the Corporation for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016			2015
Total claims pending at the beginning of the period		6,212			8,457
New claims served		397			372
Claims dismissed		(90	)		(311	)
Claims settled		(80	)		(120	)
Total claims pending at the end of the period (1)		6,439			8,398
Gross settlement and defense costs (in 000’s)	$	4,027		$	5,083
Avg. gross settlement and defense costs per claim resolved (in 000’s)	$	23.69		$	11.79

(1) Included as “open claims” are approximately 427 and 1,645 claims as of March 31, 2016 and 2015, respectively, classified in various jurisdictions as “inactive” or transferred to a state or federal judicial panel on multi-district litigation, commonly referred to as the MDL.

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A substantial majority of the settlement and defense costs reflected in the above table was reported and paid by insurers. Because claims are often filed and can be settled or dismissed in large groups, the amount and timing of settlements, as well as the number of open claims, can fluctuate significantly from period to period.

Asbestos Insurance

The Corporation and its Air & Liquid Systems Corporation (“Air & Liquid”) subsidiary are parties to a series of settlement agreements (“Settlement Agreements”) with insurers that have coverage obligations for Asbestos Liability (the “Settling Insurers”). Under the Settlement Agreements, the Settling Insurers accept financial responsibility, subject to the terms and conditions of the respective agreements, including overall coverage limits, for pending and future claims for Asbestos Liability. The Settlement Agreements encompass the substantial majority of insurance policies that provide coverage for claims for Asbestos Liability.

The Settlement Agreements include acknowledgements that Howden North America, Inc. (“Howden”) is entitled to coverage under policies covering Asbestos Liability for claims arising out of the historical products manufactured or distributed by Buffalo Forge, a former subsidiary of the Corporation (the “Products”). The Settlement Agreements do not provide for any prioritization on access to the applicable policies or any sublimits of liability as to Howden or the Corporation and Air & Liquid, and, accordingly, Howden may access the coverage afforded by the Settling Insurers for any covered claim arising out of a Product. In general, access by Howden to the coverage afforded by the Settling Insurers for the Products will erode coverage under the Settlement Agreements available to the Corporation and Air & Liquid for Asbestos Liability.

On February 24, 2011, the Corporation and Air & Liquid filed a lawsuit in the United States District Court for the Western District of Pennsylvania against thirteen domestic insurance companies, certain underwriters at Lloyd’s, London and certain London market insurance companies, and Howden. The lawsuit seeks a declaratory judgment regarding the respective rights and obligations of the parties under excess insurance policies that were issued to the Corporation from 1981 through 1984 as respects claims against the Corporation and its subsidiary for Asbestos Liability and as respects asbestos bodily-injury claims against Howden arising from the Products. The Corporation and Air & Liquid have reached Settlement Agreements with all but two of the defendant insurers in the coverage action. Those Settlement Agreements specify the terms and conditions upon which the insurer parties are to contribute to defense and indemnity costs for claims for Asbestos Liability. One of the Settlement Agreements entered into by the Corporation and Air & Liquid also provided for the dismissal of claims, without prejudice, regarding two upper-level excess policies issued by one of the insurers. The Court has entered Orders dismissing all claims in the action filed against each other by the Corporation and Air & Liquid, on the one hand, and by the settling insurers, on the other. Howden also reached an agreement with eight domestic insurers addressing asbestos-related bodily injury claims arising from the Products, and claims as to those insurers and Howden have been dismissed. Various counterclaims, cross claims and third party claims have been filed in the litigation and remain pending although only two domestic insurers and Howden remain in the litigation as to the Corporation and Air & Liquid. On September 27, 2013, the Court issued a memorandum opinion and order granting in part and denying in part cross motions for summary judgment filed by the Corporation and Air & Liquid, Howden, and the insurer parties still in the litigation. On February 26, 2015, the Court issued final judgment. One insurer filed a notice of appeal from the judgment to the U.S. Court of Appeals to the Third Circuit; as a result, several other insurers, Howden, the Corporation, and Air & Liquid filed notices of case appeal. The appeals are presently pending, and the parties have been involved in a mediation through the Third Circuit’s mediator’s office.

Asbestos Valuations

In 2006, the Corporation retained Hamilton, Rabinovitz & Associates, Inc. (“HR&A”), a nationally recognized expert in the valuation of asbestos liabilities, to assist the Corporation in estimating the potential liability for pending and unasserted future claims for Asbestos Liability. HR&A was not requested to estimate asbestos claims against the inactive subsidiary in dissolution, which the Corporation believes are immaterial. Based on this analysis, the Corporation recorded a reserve for Asbestos Liability claims pending or projected to be asserted through 2013 as of December 31, 2006. HR&A’s analysis has been periodically updated since that time. Most recently, the HR&A analysis was updated in 2014, and additional reserves were established by the Corporation as of December 31, 2014 for Asbestos Liability claims pending or projected to be asserted through 2024. The methodology used by HR&A in its projection in 2014 of the operating subsidiaries’ liability for pending and unasserted potential future claims for Asbestos Liability, which is substantially the same as the methodology employed by HR&A in prior estimates, relied upon and included the following factors:

• HR&A’s interpretation of a widely accepted forecast of the population likely to have been exposed to asbestos;

• epidemiological studies estimating the number of people likely to develop asbestos-related diseases;

• HR&A’s analysis of the number of people likely to file an asbestos-related injury claim against the subsidiaries and the Corporation based on such epidemiological data and relevant claims history from January 1, 2012 to December 8, 2014;

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• an analysis of pending cases, by type of injury claimed and jurisdiction where the claim is filed;

• an analysis of claims resolution history from January 1, 2012 to December 8, 2014 to determine the average settlement value of claims, by type of injury claimed and jurisdiction of filing; and

• an adjustment for inflation in the future average settlement value of claims, at an annual inflation rate based on the Congressional Budget Office’s ten year forecast of inflation.

Using this information, HR&A estimated in 2014 the number of future claims for Asbestos Liability that would be filed through the year 2024, as well as the settlement or indemnity costs that would be incurred to resolve both pending and future unasserted claims through 2024. This methodology has been accepted by numerous courts.

In conjunction with developing the aggregate liability estimate referenced above, the Corporation also developed an estimate of probable insurance recoveries for its Asbestos Liabilities. In developing the estimate, the Corporation considered HR&A’s projection for settlement or indemnity costs for Asbestos Liability and management’s projection of associated defense costs (based on the current defense to indemnity cost ratio), as well as a number of additional factors. These additional factors included the Settlement Agreements then in effect, policy exclusions, policy limits, policy provisions regarding coverage for defense costs, attachment points, prior impairment of policies and gaps in the coverage, policy exhaustions, insolvencies among certain of the insurance carriers, and the nature of the underlying claims for Asbestos Liability asserted against the subsidiaries and the Corporation as reflected in the Corporation’s asbestos claims database, as well as estimated erosion of insurance limits on account of claims against Howden arising out of the Products. In addition to consulting with the Corporation’s outside legal counsel on these insurance matters, the Corporation consulted with a nationally-recognized insurance consulting firm it retained to assist the Corporation with certain policy allocation matters that also are among the several factors considered by the Corporation when analyzing potential recoveries from relevant historical insurance for Asbestos Liabilities. Based upon all of the factors considered by the Corporation, and taking into account the Corporation’s analysis of publicly available information regarding the credit-worthiness of various insurers, the Corporation estimated the probable insurance recoveries for Asbestos Liability and defense costs through 2024. Although the Corporation believes that the assumptions employed in the insurance valuation were reasonable and previously consulted with its outside legal counsel and insurance consultant regarding those assumptions, there are other assumptions that could have been employed that would have resulted in materially lower insurance recovery projections.

Based on the analyses described above, the Corporation’s reserve at December 31, 2014 for the total costs, including defense costs, for Asbestos Liability claims pending or projected to be asserted through 2024 was $189,048 of which approximately 64% was attributable to settlement costs for unasserted claims projected to be filed through 2024 and future defense costs. The reserve at March 31, 2016 was $165,822. While it is reasonably possible that the Corporation will incur additional charges for Asbestos Liability and defense costs in excess of the amounts currently reserved, the Corporation believes that there is too much uncertainty to provide for reasonable estimation of the number of future claims, the nature of such claims and the cost to resolve them beyond 2024. Accordingly, no reserve has been recorded for any costs that may be incurred after 2024.

The Corporation’s receivable at December 31, 2014 for insurance recoveries attributable to the claims for which the Corporation’s Asbestos Liability reserve has been established, including the portion of incurred defense costs covered by the Settlement Agreements in effect through December 31, 2014, and the probable payments and reimbursements relating to the estimated indemnity and defense costs for pending and unasserted future Asbestos Liability claims, was $140,651 ($122,748 at March 31, 2016).

The following table summarizes activity relating to insurance recoveries.

	Three Months Ended March 31,
	2016			2015
Insurance receivable – asbestos, beginning of the year	$	125,423		$	140,651
Settlement and defense costs paid by insurance carriers		(2,675	)		(3,844	)
Insurance receivable – asbestos, end of the period	$	122,748		$	136,807

The insurance receivable recorded by the Corporation does not assume any recovery from insolvent carriers and a substantial majority of the insurance recoveries deemed probable was from insurance companies rated A – (excellent) or better by A.M. Best Corporation. There can be no assurance, however, that there will not be further insolvencies among the relevant insurance carriers, or that the assumed percentage recoveries for certain carriers will prove correct. The difference between insurance recoveries and projected costs is not due to exhaustion of all insurance coverage for Asbestos Liability. The Corporation and the subsidiaries have substantial additional insurance coverage which the Corporation expects to be available for Asbestos Liability claims and defense costs that the subsidiaries and it may incur after 2024. However, this insurance coverage also can be expected to have gaps creating significant shortfalls of insurance recoveries as against claims expense, which could be material in future years.

The amounts recorded by the Corporation for Asbestos Liabilities and insurance receivables rely on assumptions that are based on currently known facts and strategy. The Corporation’s actual expenses or insurance recoveries could be significantly higher

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or lower than those recorded if assumptions used in the Corporation’s or HR&A’s calculations vary significantly from actual results. Key variables in these assumptions are identified above and include the number and type of new claims to be filed each year, the average cost of disposing of each such new claim, average annual defense costs, compliance by relevant parties with the terms of the Settlement Agreements, the resolution of remaining coverage issues with insurance carriers, and the solvency risk with respect to the relevant insurance carriers. Other factors that may affect the Corporation’s Asbestos Liability and ability to recover under its insurance policies include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms that may be made by state and federal courts, and the passage of state or federal tort reform legislation.

The Corporation intends to evaluate its estimated Asbestos Liability and related insurance receivables as well as the underlying assumptions on a regular basis to determine whether any adjustments to the estimates are required. Due to the uncertainties surrounding asbestos litigation and insurance, these regular reviews may result in the Corporation incurring future charges; however, the Corporation is currently unable to estimate such future charges. Adjustments, if any, to the Corporation’s estimate of its recorded Asbestos Liability and/or insurance receivables could be material to operating results for the periods in which the adjustments to the liability or receivable are recorded, and to the Corporation’s liquidity and consolidated financial position.

14. Environmental Matters

The Corporation is currently performing certain remedial actions in connection with the sale of real estate previously owned. Environmental exposures are difficult to assess and estimate for numerous reasons including lack of reliable data, the multiplicity of possible solutions, the years of remedial and monitoring activity required, and identification of new sites. In the opinion of management and in consideration of advice from the Corporation’s consultants, the potential liability for all environmental proceedings of approximately $300 recorded at March 31, 2016 is considered adequate based on information known to date.

15. Subsequent Event

In April 2016, the Corporation elected to freeze salary benefit accruals and participation in one of the U.S. defined benefit pension plans assumed as a result of the Åkers acquisition. Effective June 1, 2016, benefits under the plan will be replaced with employer non-elective contributions equaling 3% of compensation. Participants in the plan currently receive an employer matching contribution. The Corporation is currently evaluating the financial statement effect of this modification.

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ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(in thousands, except share and per share amounts)

Executive Overview

Ampco-Pittsburgh Corporation and its subsidiaries (the “Corporation”) manufacture and sell highly engineered, high performance specialty metal products and customized equipment utilized by industry throughout the world. We operate in two business segments – the Forged and Cast Engineered Products segment and the Air and Liquid Processing segment.

The Forged and Cast Engineered Products segment historically consisted of Union Electric Steel Corporation (“Union Electric Steel” or “UES”) and Union Electric Steel UK Limited (“UES-UK”). On March 3, 2016, UES acquired the stock of Åkers AB and certain of its affiliated companies, including Åkers AB’s 60% equity interest in a Chinese joint venture company (collectively, “Åkers”) from Altor Fund II GP Limited. Doing business as Union Electric Åkers, the segment has operations in the United States, England, Sweden and Slovenia and an equity interest in three joint venture companies in China. The companies produce ingot and forged products and cast products that service a wide variety of industries globally. It specializes in the production of forged hardened steel rolls used mainly for cold rolling by producers of steel, aluminum and other metals and cast rolls for hot and cold strip mills, medium/heavy section mills and plate mills in a variety of iron and steel qualities. In addition, UES produces ingot and open die forged products (“other forging products”) which are used in the gas and oil industry and the aluminum and plastic extrusion industries and provides a service capability in the United States. The group primarily competes with European, Asian and North and South American companies in both domestic and foreign markets and distributes a significant portion of its products through sales offices located throughout the world.

The Forged and Cast Engineered Products segment has been operating at levels significantly below capacity due to an overall reduction in global demand for roll product. Market conditions in the United States, Europe and other world regions remain difficult due to weaknesses in our customer base, which is suffering from excess steelmaking capacity and an over-supply of rolls worldwide. The strengthening of the U.S. dollar and British pound against most major currencies has further hampered opportunity. With the global steelmaking industry operating well below capacity, customer emphasis has been on roll cost versus performance. Accordingly, pricing has suffered and profit margins have decreased. Demand for rolls remains weak and pricing pressure continues. We do not anticipate major improvement in the steel market in 2016 but believe a slow turnaround could begin by 2017. While currently representing a minor portion of the segment’s business activity, ongoing efforts to diversify our customer base have resulted in expansion of our other forging products. Although being affected by weak demand as a result of the falloff in crude oil pricing, sales of other forging products have offset some of the effects of constraints currently affecting the roll market through utilization of available production capacity.

Union Electric Steel MG Roll Co., Ltd (“UES-MG”), the Chinese joint venture company in which a subsidiary of UES holds a 49% interest, principally manufactures and sells forged backup rolling mill rolls of a size and weight currently not able to be produced by UES. Similar to UES, the joint venture has been adversely impacted by the global economy, resulting in significantly depressed pricing and reduced demand from its potential customer base in China. Excluding the first quarter of 2016, losses have been incurred since 2009, in which we have recognized our share (49%) in our consolidated statements of operations, and are expected to continue through 2016 and into 2017. Additionally, the overall financial strength of the joint venture remains weak with a significant reliance on the 51% partner or entities controlled by the 51% partner to provide financing and working capital. We will continue to monitor the carrying value of this investment ($1,757 at March 31, 2016) to determine if future charges are necessary.

The Air and Liquid Processing segment includes Aerofin, Buffalo Air Handling and Buffalo Pumps, all divisions of Air & Liquid Systems Corporation (“Air and Liquid”), a wholly-owned subsidiary of the Corporation. Aerofin produces custom-engineered finned tube heat exchange coils and related heat transfer products for a variety of industries including OEM/Commercial, fossil fuel, nuclear power generation and industrial process. Buffalo Air Handling produces large custom-designed air handling systems for institutional (e.g., hospital, university), pharmaceutical and general industrial building markets. Buffalo Pumps manufactures centrifugal pumps for the fossil fuel power generation, marine defense and industrial refrigeration industries. The segment has operations in Virginia and New York with headquarters in Carnegie, Pennsylvania. The segment distributes a significant portion of its products through a common independent group of sales offices located throughout the United States and Canada.

For the Air and Liquid Processing segment, business activity in the specialty centrifugal pump industry continues to be strong while a decline in the fossil-fueled power generation market and industrial markets is negatively affecting our heat exchanger business. The downturn in the fossil-fueled power generation market is due to a falloff in spending for coal-fired power plants while the industrial markets are being impacted by lower spending in the industrial replacement market and increased competition. Our share of the market for custom air handling systems has improved; however, competitive pricing pressures continue. The focus for this segment is to grow revenues, increase margins, strengthen engineering and manufacturing capabilities, and enhance the sales and marketing approach.

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Consolidated Results of Operations for the Three Months Ended March 31, 2016 and 2015

Net sales for the three months ended March 31, 2016 and 2015 were $63,578 and $65,087, respectively. Backlog approximated $279,631 at March 31, 2016 versus $141,825 as of December 31, 2015 and $159,210 as of March 31, 2015. A discussion of sales and backlog for the Corporation’s two segments is included below.

Costs of products sold, excluding depreciation, as a percentage of net sales approximated 80.4% and 80.0% for the three months ended March 31, 2016 and 2015, respectively. The increase is principally due to the effects of purchase accounting associated with the acquisition which increased costs of products sold, excluding depreciation, as a percentage of net sales by approximately 250 basis points, whereas 2015 includes $268 of the $1,217 curtailment charge incurred in connection with the curtailment of the U.S. defined benefit plan which increased costs of products sold, excluding depreciation, as a percentage of net sales by approximately 50 basis points.

Selling and administrative expenses totaled $13,508 (21.2% of net sales) and $9,396 (14.4% of net sales) for the three months ended March 31, 2016 and 2015, respectively. Included in 2016 are selling and administrative costs for Åkers of approximately $2,229 and acquisition-related transaction costs of approximately $1,800 relating principally to the purchase of Åkers. Selling and administrative expenses for 2015 includes $949 of the $1,217 curtailment charge incurred in connection with the curtailment of the U.S. defined benefit plan but benefited from collection of accounts receivable previously written off of approximately $750.

(Loss) income from operations for the three months ended March 31, 2016 and 2015 approximated $(4,963) and $502, respectively. A discussion of operating results for the Corporation’s two segments is included below.

Forged and Cast Engineered Products. Net sales for the three months ended March 31, 2016 were slightly less than sales for the three months ended March 31, 2015 and included $12,583 of sales for the newly acquired Åkers businesses. The addition of Åkers and a modest improvement in UES’ forged roll sales offset lower cast roll sales and an approximate $8,600 decline in the volume of open-die forged shipments to the oil and gas industry. The segment recorded an operating loss for the quarter led by the inclusion of Åkers, including the effects of purchase accounting, of approximately $2,000. The lower volume of open-die forged shipments and the fall off in cast roll shipments negatively impacted results by approximately $1,600. Additionally, operating income for the three months ended March 31, 2015 benefitted from collection of accounts receivable previously written off of approximately $750. Backlog approximated $243,469 at March 31, 2016 against $106,582 as of December 31, 2015 and $123,109 as of March 31, 2015. The increase in backlog primarily represents backlog for Åkers. Approximately $61,675 of the current backlog is expected to ship after 2016.

Air and Liquid Processing. Net sales for the segment for the three months ended March 31, 2016 were comparable to the three months ended March 31, 2015. For the current year quarter, net sales of air handling units increased by roughly 23% whereas net sales of heat exchange coils fell by approximately 13%, due to a lower volume of shipments to the fossil-fueled utility and industrial markets, and net sales of pumps decreased by approximately 3% due to a volume of shipments of commercial pumps. Backlog approximated $36,162 at March 31, 2016 against $35,243 as of December 31, 2015 and $36,101 as of March 31, 2015. The majority of backlog will ship in 2016.

Interest expense includes interest on the notes issued in connection with the purchase of Åkers and the loan payble to the noncontrolling shareholder of the Åkers Chinese joint venture totaling a combined $179 for the three months ended March 31, 2016.

Other income (expense) fluctuated primarily as a result of changes in foreign exchange gains and losses. Other income (expense) principally benefitted from foreign-exchange gains during the quarter compared to foreign-exchange losses a year ago. Foreign exchange gains resulted primarily from the weakening of the U.S. dollar against the Euro and Swedish Krona.

Effective income tax rate approximated 21.3% in comparison to 32.7% for the three months ended March 31, 2015. The decrease is principally due to the change in the geographic mix of earnings, inclusive of the newly acquired Åkers entities.

Net (loss) income and earnings per common share equaled $(2,890) or $(0.26) per common share for the three months ended March 31, 2016 which included an after-tax impact of both transaction-related costs and purchase accounting of approximately $2,807 or $0.26 per common share. For the three months ended March 31, 2015, the Corporation earned net income of $72 or $0.01 per common share which included an after-tax impact relating to the pension curtailment charge and collection of accounts receivable previously written off of approximately $314 or $0.03 per common share.

Liquidity and Capital Resources

Net cash flows provided by (used in) operating activities decreased for the three months ended March 31, 2016 when compared to the three months ended March 31, 2015. The decline is associated principally with higher inventories offset by a reduction in accounts receivable due to a combination of lower sales and improved collections.

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Net cash flows used in investing activities represent primarily the cash portion for the acquisition of Åkers, net of cash acquired. Capital expenditures for the three months ended March 31, 2016 were less than the three months ended March 31, 2015 and related primarily to lower spend for the Forged and Cast Engineered Products segment. As of March 31, 2016, commitments for future capital expenditures approximated $9,325 which is expected to be spent over the next 12-18 months.

Net cash flows used in financing activities were comparable for each of the quarters and represented primarily payment of dividends.

As a result of the above, cash and cash equivalents decreased $34,981 in 2016 and ended the period at $60,141 (of which approximately $17,192 is held by foreign operations) in comparison to $95,122 at December 31, 2015 (of which approximately $10,785 was held by foreign operations). Repatriation of foreign funds may result in the Corporation accruing and paying additional income tax; however, the majority of such amounts are currently deemed to be permanently reinvested and no additional provision for income tax has been made.

Funds on hand and funds generated from future operations are expected to be sufficient to finance the operational and capital expenditure requirements of the Corporation. The Corporation also maintains short-term lines of credit and an overdraft facility in excess of the cash needs of its businesses. The total available at March 31, 2016 was approximately $8,000 (including £2,500 in the U.K. and €400 in Belgium).

Litigation and Environmental Matters

See Notes 13 and 14 to the condensed consolidated financial statements.

Critical Accounting Pronouncements

The Corporation’s critical accounting policies, as summarized in its Annual Report on Form 10-K for the year ended December 31, 2015, remain unchanged.

Recently Issued Accounting Pronouncements

See Note 1 to the condensed consolidated financial statements.

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 (the “Act”) provides a safe harbor for forward-looking statements made by or on our behalf. Management’s Discussion and Analysis of Financial Condition and Results of Operation and other sections of the Form 10-Q as well as the condensed consolidated financial statements and notes thereto may contain forward-looking statements that reflect our current views with respect to future events and financial performance. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within the meaning of the Act. In this document, statements regarding future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements. Words such as “may,” “intend,” “believe,” “expect,” “anticipate,” “estimate,” “project,” “forecast” and other terms of similar meaning that indicate future events and trends are also generally intended to identify forward looking statements. Forward-looking statements speak only as of the date on which such statements are made, are not guarantees of future performance or expectations, and involve risks and uncertainties. For us, these risks and uncertainties include, but are not limited to, those described under Item 1A, Risk Factors, of Part II of this Form 10-Q. In addition, there may be events in the future that we are not able to predict accurately or control which may cause actual results to differ materially from expectations expressed or implied by forward-looking statements. Except as required by applicable law, we assume no obligation, and disclaim any obligation, to update forward-looking statements whether as a result of new information, events or otherwise.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There were no material changes in the Corporation’s exposure to market risk from December 31, 2015.

21

ITEM 4 – CONTROLS AND PROCEDURES

(a) Disclosure controls and procedures. An evaluation of the effectiveness of the Corporation’s disclosure controls and procedures as of the end of the period covered by this report was carried out under the supervision, and with the participation, of management, including the principal executive officer and principal financial officer. Disclosure controls and procedures are defined under Securities and Exchange Commission (“SEC”) rules as controls and other procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within the required time periods. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on that evaluation, the Corporation’s management, including the principal executive officer and principal financial officer, has concluded that the Corporation’s disclosure controls and procedures were effective as of March 31, 2016.

(c) Changes in Internal Control. Except as described below, there has been no change in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 under the Securities Exchange Act of 1934 that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. During the quarter ended March 31, 2016, we acquired Åkers. We are in the process of integrating Åkers into our overall internal control over financial reporting process.

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PART II – OTHER INFORMATION

AMPCO-PITTSBURGH CORPORATION

Item 1 Legal Proceedings

The information contained in Note 13 to the condensed consolidated financial statements (Litigation) is incorporated herein by reference.

Item 1A Risk Factors

There are no material changes to the Risk Factors contained in Item 1A to Part I of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2015.

Items 2-5 None

Item 6 Exhibits

(10) Material Contracts

(10.1)	Ampco-Pittsburgh Corporation 2016 Omnibus Incentive Plan, incorporated by reference to Annex I to the Definitive Proxy Statement on Schedule 14A filed on March 23, 2016, as supplemented by the Definitive Proxy Statement on Schedule 14A filed on March 25, 2016.
(10.2)	Change in Control Agreement between Ampco-Pittsburgh Corporation and Michael G. McAuley, dated April 25, 2016, incorporated by reference to Form 8-K filed on April 25, 2016.
(10.3)	Retirement and Consulting Agreement effective May 1, 2016 with Robert G. Carothers, incorporated by reference to Form 8-K filed on May 3, 2016.
(10.4)	Change in Control Agreement, dated as of May 5, 2016, by and among Rodney L. Scagline, Ampco-Pittsburgh Corporation and Union Electric Steel Corporation.
(31.1)	Certification of Principal Executive Officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
(31.2)	Certification of Principal Financial Officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
(32.1)	Certification of Principal Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.
(32.2)	Certification of Principal Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.
(101)	Interactive Data File (XBRL)

23

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AMPCO-PITTSBURGH CORPORATION
DATE: May 10, 2016	BY:	/s/ John S. Stanik
		John S. Stanik
		Director and Chief Executive Officer
DATE: May 10, 2016	BY:	/s/ Michael G. McAuley
		Michael G. McAuley
		Vice President, Chief Financial Officer and Treasurer

24

AMPCO-PITTSBURGH CORPORATION

EXHIBIT INDEX

Exhibit	(10.1)	Ampco-Pittsburgh Corporation 2016 Omnibus Incentive Plan, incorporated by reference to Annex I to the Definitive Proxy Statement on Schedule 14A filed on March 23, 2016, as supplemented by the Definitive Proxy Statement on Schedule 14A filed on March 25, 2016.
	(10.2)	Change in Control Agreement between Ampco-Pittsburgh Corporation and Michael G. McAuley, dated April 25, 2016, incorporated by reference to Form 8-K filed on April 25, 2016.
	(10.3)	Retirement and Consulting Agreement effective May 1, 2016 with Robert G. Carothers, incorporated by reference to Form 8-K filed on May 3, 2016.
	(10.4)	Change in Control Agreement, dated as of May 5, 2016, by and among Rodney L. Scagline, Ampco-Pittsburgh Corporation and Union Electric Steel Corporation.
	(31.1)	Certification of Principal Executive Officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
	(31.2)	Certification of Principal Financial Officer pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.
	(32.1)	Certification of Principal Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.
	(32.2)	Certification of Principal Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002.
	(101)	Interactive Data File (XBRL)

25

EX-10.4

Exhibit 10.4

726 Bell Avenue/Suite 301/P.O. Box 457

Carnegie, PA 15106

May 5, 2016

Mr. Rodney L. Scagline

Union Electric Steel Corporation

726 Bell Avenue, Suite 101

Carnegie, PA 15106

Dear Rodney:

This Agreement (this “Agreement”) is entered into among you, Ampco-Pittsburgh Corporation (the “Corporation”) and Union Electric Steel Corporation (“UES”), on May 5, 2016 (the “Effective Date”).

The Corporation and UES recognize your experience and potential contribution to the success of UES and the Corporation and desire to assure UES of your continued employment. In this connection, the Board of Directors of the Corporation (the “Board”) and the Board of Directors of UES (the “UES Board”) recognize that, the possibility of a change in control may exist and that such possibility, and the uncertainty that it may raise among the Corporation’s and UES’ management, may result in the departure or distraction of management personnel to the detriment of UES, the Corporation and the Corporation’s shareholders.

The Board and the UES Board have each determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Corporation’s and UES’ management, including you, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a change in control of the Corporation or UES.

In order to induce you to remain in the employ of UES, the Corporation and UES each agrees that you shall receive the severance benefits set forth in this letter agreement (“Agreement”) in the event your employment with UES is terminated subsequent to a “Change in Control” (as defined in Section 2 hereof) under the circumstances described below.

1. Term of Agreement. This Agreement will commence effective as of the date hereof and shall continue in effect until May 8, 2018; provided, however, that if a Change in Control shall have occurred during the term of this Agreement, this Agreement cannot be cancelled.

Mr. Rodney L. Scagline 2

2. Change in Control.

(a) Except as provided in Section 6 of this Agreement, no benefits shall be payable hereunder unless there shall have been a Change in Control as set forth below. For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if:

(i) any “person” (as defined in Sections 13(d) and 14(d) of the Exchange Act) other than the persons or the group of persons in control of the Corporation or UES on the date hereof is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation or UES representing fifty percent (50%) or more of the combined voting power of the Corporation’s then outstanding securities;

(ii) within any period of two consecutive years (not including any period prior to the execution of this Agreement) there shall cease to be a majority of the Board comprised as follows: individuals who at the beginning of such period constitute the Board and any new director(s) whose election was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved;

(iii) the shareholders of the Corporation approve a merger of, or consolidation involving, the Corporation in which (A) the Corporation’s Common Stock, par value $1.00 per share (such stock, or any other securities of the Corporation into which such stock shall have been converted through a reincorporation, recapitalization or similar transaction, hereinafter called “Common Stock of the Corporation”), is converted into shares or securities of another corporation, or into cash or other property, or (B) the Common Stock of the Corporation is not converted as described in Clause (A), but in which more than forty percent (40%) of the Common Stock of the surviving corporation in the merger is owned by Shareholders other than those who owned such amount prior to the merger; or any other transaction after which the Corporation’s Common Stock is no longer to be publicly traded; in each case, other than a transaction solely for the purpose of reincorporating the Corporation in another jurisdiction or recapitalizing the Common Stock of the Corporation; or

(iv) the shareholders of the Corporation or UES approve a plan of complete liquidation of the Corporation or UES, respectively, or an agreement for the sale or disposition by the Corporation or UES of all or substantially all the Corporation’s or UES’ assets, respectively, either of which is followed by a distribution of all or substantially all of the proceeds to the shareholders.

3. Agreement of Employee. You agree that in the event of a Potential Change in Control, you will not terminate employment with UES for any reason until the occurrence of a Change in Control.

For purposes of this Agreement, a “Potential Change in Control” shall be deemed to have occurred if (i) the Corporation or UES enters into an agreement, the consummation of

Mr. Rodney L. Scagline 3

which would result in the occurrence of a Change in Control, (ii) any person (including the Corporation and UES) publicly announces an intention to take or to consider taking actions, which if consummated would constitute a Change in Control, or (iii) either the Board or the UES Board adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change in Control of the Corporation has occurred.

4. Termination Following a Change in Control.

(a) If any of the events described in Section 2 constituting a Change in Control shall have occurred, you shall be entitled to the benefits provided in Section 5(d) upon the termination of your employment within twenty-four (24) months after the Change in Control has occurred, or pursuant to Section 6 prior to the Change in Control, unless such termination is (i) because of your death or Disability, (ii) by UES for Cause, or (iii) by you other than for Good Reason.

(b) For purposes of this Agreement, “Disability” shall mean that if, as a result of your incapacity due to physical or mental illness, you shall have been absent from the full-time performance of your duties with UES for six (6) consecutive months, and within thirty (30) days after written notice of termination shall have been given to you, you shall not have returned to the full-time performance of your duties.

(c) For purposes of this Agreement, termination by UES of your employment for “Cause” shall mean termination upon:

(i) the willful and continued failure by you to substantially perform duties consistent with your position with UES (other than any such failure resulting from incapacity due to physical or mental illness or termination by you for Good Reason), after a demand for substantial performance is delivered to you by the UES Board, together with a copy of the resolution of the UES Board that specifically identifies the manner in which the Board believes that you have not substantially performed your duties, which resolution must be passed by at least two-thirds (2/3) of the entire UES Board at a meeting called for the purpose and after an opportunity for you and your counsel to be heard by the UES Board, and you have failed to resume substantial performance of your duties on a continuous basis within fourteen (14) days of receiving such demand,

(ii) the willful engaging by you in conduct that is demonstrably and materially injurious to UES or the Corporation, monetarily or otherwise, as set forth in a resolution of the UES Board, which resolution must be passed by at least two-thirds (2/3) of the entire UES Board at a meeting called for the purpose and after an opportunity for you and your counsel to be heard by the UES Board, or

(iii) your conviction of a felony, or conviction of a misdemeanor involving assets of UES or the Corporation.

For purposes of this Section 4(c), no act, or failure to act, on your part shall be deemed “willful” unless done, or omitted to be done, by you not in good faith and without reasonable belief that your action or omission was in the best interest of UES and the Corporation.

Mr. Rodney L. Scagline 4

(d) For purposes of this Agreement, “Good Reason” shall mean, without your express written consent, the occurrence after a Change in Control of any one or more of the following conditions, which condition continues without timely and complete remedy by the Corporation after notice, as provided below:

(i) If, following a Change in Control, your status as President of UES shall not continue or you shall not be afforded the authority, responsibilities and prerogatives of such position and report directly to the Chief Executive Officer of the Corporation or the Parent Corporation, as the case may be;

(ii) a reduction by UES in your base salary as in effect immediately before the Change in Control, a failure to increase such base salary at the same intervals as prevailed before the Change in Control in an amount at least equal to the same percentage increase as the last increase prior to the Change in Control, or a reduction in bonus after the Change in Control over the last bonus paid before the Change in Control unless there are equivalent reductions in bonuses for all executives of UES;

(iii) the requirement that you be based at a location in excess of twenty-five (25) miles from the location where you are currently based;

(iv) the failure by UES to continue in effect any of the UES employee benefit plans, policies, practices or arrangements in which you participate or under which you are entitled to benefits, or the failure by UES to continue your participation therein or benefits thereunder on substantially the same basis, both in terms of the amount of benefits provided and the level of your participation relative to other participants, as existed immediately prior to the Change in Control; or

(v) the breach of this Agreement by the Corporation or UES, as applicable, because of the Corporation’s or UES’ failure to obtain a satisfactory agreement from any successor to the Corporation or UES, respectively, to assume and agree to perform this Agreement, as contemplated in Section 7.

The foregoing notwithstanding, you shall notify the Corporation within 90 days of the initial existence of a particular condition described above in this Section 4(d), and the Corporation shall have 30 days from such notice completely to remedy such particular condition so that the you are in the same position as if the condition had never occurred. If the Corporation timely and completely remedies the condition as required above, then the particular occurrence of the particular condition for which you gave notice shall no longer constitute Good Reason. If the Corporation does not timely and completely remedy the particular occurrence of the particular condition for which you gave notice, you shall be deemed to terminate employment for Good Reason on the 31st day following your notice to the Corporation.

(e) For purposes of this Agreement, “Parent Corporation” shall mean any “affiliate” of UES that is the ultimate controlling entity of UES or its successor and shall include, without limiting the generality of the foregoing, any entity (and affiliated persons and entities) that beneficially owns, directly or indirectly, fifty percent (50%) or more of the combined voting power of the then outstanding voting stock of UES, or any entity that

Mr. Rodney L. Scagline 5

beneficially owns, directly or indirectly, forty percent (40%) or more (but less than fifty percent (50%) of the combined voting power of the then outstanding voting stock of the Corporation if such entity (or affiliated persons or entities) has at least one representative on the Board of Directors of UES.

(f) “Good Reason” may be established notwithstanding your possible incapacity due to physical or mental illness, provided that Disability has not been established pursuant to Section 4(b). Your continued employment following the Change in Control shall not constitute a waiver of any rights hereunder including, but not limited to, rights with respect to any circumstance constituting Good Reason or rights under Section 8.

5. Compensation Upon Termination or During Incapacity. Following a Change in Control, upon termination of your employment, or during a period of incapacity but before termination for Disability, you shall be entitled to the following benefits:

(a) During any period prior to termination for Disability in which you fail to perform your full-time duties with UES as a result of incapacity due to physical or mental illness, you shall continue to receive your Base Salary at the rate in effect at the commencement of any such period. Following termination for Disability, your benefits shall be determined in accordance with the UES’ retirement, insurance and other applicable programs and plans then in effect.

(b) If your employment shall be terminated by UES for Cause or by you other than for Good Reason, UES shall pay to you your full Base Salary through the date of termination of your employment at the rate then in effect, plus all other amounts to which you are entitled under any compensation or benefit plans of UES at the time such amounts are due, and neither UES nor the Corporation shall have no further obligations to you under this Agreement.

(c) If your employment terminates by reason of your death, your benefits shall be determined in accordance with UES’ retirement, survivor’s benefits, insurance and other applicable programs and plans then in effect.

(d) If your employment by UES shall be terminated within twenty-four (24) months after the Change in Control, unless such termination is (i) by UES for Cause, (ii) because of your death or Disability, or (iii) by you other than for Good Reason, you shall be entitled to the following benefits (the “Severance Payments”):

(A) UES shall pay to you your full Base Salary through the date of termination of your employment at the rate then in effect;

(B) UES shall pay to you, as severance benefits, a lump sum severance payment equal to the sum of (i) three times your annual base salary either at the time of the Change in Control or at termination, whichever is higher, and (ii) three times your bonus paid for the prior year;

(C) in lieu of shares of common stock of the Corporation (“Shares”) issuable upon exercise of outstanding options (“Options”), if any, granted to you

Mr. Rodney L. Scagline 6

under the Corporation’s Incentive Stock Option Plan, or under any additional, substitute or successor option program or plan as may be in effect from time to time (which Options shall be cancelled upon the making of the payment referred to below), you shall receive an amount in cash equal to the product of (i) the higher of the closing price per Share as reported on the New York Stock Exchange on the date of termination of your employment or the highest price per Share actually paid in connection with any Change in Control, over the exercise price per Share of each Option held by you, times (ii) the number of Shares covered by each such option;

(D) as more completely described in Section 5(i), for a twenty-four (24) month period after such termination, UES will arrange to provide you at its expense with benefits under UES health, dental, disability, life insurance, and other similar employee benefit insurance plans applicable to salaried employees, or benefits substantially similar to the benefits you were receiving under such plans immediately prior to the termination of your employment;

(E) the opportunity to purchase the leased UES car, if any, which has been assigned to you, at its then book value under the UES’ leasing arrangements, provided that should you choose to take such opportunity, you must complete such purchase by a date that is within two and one-half months after the calendar year of your termination;

(F) any unearned Restricted Stock Units of the Corporation granted to you under the any Stock Incentive Plan of the Corporation approved by the shareholders shall become immediately earned and vested as of the date of the termination of your employment; and

(G) all benefits payable to you under the Ampco-Pittsburgh Corporation Retirement Plan, the Ampco-Pittsburgh Corporation Supplemental Executive Retirement Plan, or any other defined benefit or retirement plan in effect at the time of such termination, in accordance with the terms and provisions thereof.

(e) Anything in this Agreement to the contrary notwithstanding, in the event it shall be determined that any payment or distribution by UES to you or for your benefit (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (the “Payments”) would be subject to the excise tax imposed by Section 4999 (or any successor provisions) of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalty is incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties, is hereinafter collectively referred to as the “Excise Tax”), then the Payments shall be reduced (but not below zero) if and to the extent that such reduction would result in you retaining a larger amount, on an after-tax basis (taking into account federal, state and local income taxes and the imposition of the Excise Tax), than if you received all of the Payments. UES shall reduce

Mr. Rodney L. Scagline 7

or eliminate the Payments, by first reducing or eliminating the portion of the Payments which are not payable in cash and then by reducing or eliminating cash payments, in each case in reverse order beginning with payments or benefits which are to be paid the farthest in time from the determination. All determinations required to be made under this Section 5(e), including whether and when an adjustment to any Payments is required and, if applicable, which Payments are to be so adjusted, shall be made by an accounting firm selected by the Corporation (the “Accounting Firm”) which shall provide detailed supporting calculations both to UES and to you within fifteen (15) business days of the receipt of notice from you that there has been a Payment, or such earlier time as is requested by UES. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change in Control, you shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall be borne solely by UES. If the Accounting Firm determines that no Excise Tax is payable by you, it shall furnish you with a written opinion that failure to report the Excise Tax on your applicable federal income tax return would not result in the imposition of a negligence or similar penalty. Any determination by the Accounting Firm shall be binding upon UES and you.

(f) The payments provided for in Sections 5(d)(A), (B) and (C) shall be made not later than the fifth day following your termination of employment pursuant to the provisions of Section 5(d); provided, however, that if the amounts of such payments cannot be finally determined on or before such day, UES shall pay to you on such day an estimate as determined in good faith by UES of the minimum amount of such payments and shall pay the remainder of such payments (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined, but in no event later than the thirtieth day after the date of such termination. Such payments will be made in all events within 2-1/2 months following the calendar year in which such termination of employment occurred. If the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall constitute a loan by UES to you payable on the fifth day after demand by the Corporation (together with interest at the rate provided in Section 1274(b)(2)(B) of the Code).

(g) UES shall also pay to you all legal fees and expenses incurred by you as a result of, and related to, such termination of your employment by UES for Cause, by UES other than for Cause, or by you for Good Reason (including all such fees and expenses, if any, incurred in contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Agreement or in connection with any tax audit or proceeding to the extent attributable to the application of Section 4999 of the Code to any payment or benefit provided hereunder).

(h) You shall not be required to mitigate the amount of any payment provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for in this Agreement be reduced by any compensation earned by you as the result of employment by another employer after the date of termination of your employment, or otherwise.

Mr. Rodney L. Scagline 8

(i) With respect to the continuation of certain employee benefits for twenty-four (24) months pursuant to Section 5(d)(D), the following shall apply:

(A) During the 18-month COBRA Continuation Period, the Corporation will provide coverage as follows:

(i) If you elect COBRA Continuation Coverage, you shall continue to participate in all medical, dental and vision insurance plans you were participating in on the termination date, and the Corporation shall pay the entire applicable premium. During the COBRA Continuation Period, you shall be entitled to benefits on substantially the same basis and cost as would have otherwise been provided had you not separated from service. To the extent that such benefits are available under the above-referenced benefit plans and you had such coverage immediately prior to termination of employment, such continuation of benefits for you shall also cover your dependents for so long as you are receiving benefits under this Section 5. The COBRA Continuation Period for medical and dental insurance under this Section 5(i) shall be deemed to run concurrent with the continuation period federally mandated by COBRA (generally 18 months), or any other legally mandated and applicable federal, state, or local coverage period for benefits provided to terminated employees under the health care plan. For purposes of this Agreement, (1) “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and (2) “COBRA Continuation Period” shall mean the continuation period for medical and dental insurance to be provided under the terms of this Agreement which shall commence on the first day of the calendar month following the month in which the date of your termination falls and generally shall continue for an 18 month period.

(ii) Following the conclusion of the 18-month COBRA Continuation Period, the Corporation will provide coverage as follows:

(1) If the relevant plan is self-insured (within the meaning of Section 105(h) of the Code), and such plan permits coverage for you, then the Corporation will continue to provide coverage under the plan for an additional eighteen (18) months and will annually impute income to you for the fair market value of the premium.

(2) If, however, any such plan does not permit the continued participation following the end of the COBRA Continuation Period as contemplated above, then the Corporation shall take all commercially reasonable efforts to provide you with, or assist you in obtaining, continued medical and dental coverage comparable to the coverage you had during the COBRA Continuation Period. It is specifically acknowledged by you that if such coverage is provided under a Corporation sponsored self-insured plan, it will be

Mr. Rodney L. Scagline 9

provided on an after- tax basis and you will have income imputed to you annually equal to the fair market value of the premium. If this coverage cannot be provided by the Corporation, (or where such continuation would adversely affect the tax status of the plan pursuant to which the coverage is provided), then as an alternative, the Corporation will reimburse you in lieu of such coverage an amount equal to your actual and reasonable cost of continuing comparable coverage.

(B) With respect to the continuation of disability, life insurance, and other similar employee benefit insurance plans applicable to salaried employees for twenty-four (24) months pursuant to Section 5(d)(D), the following shall apply:

(i) To the extent your coverage for disability, life insurance, and other similar employee benefit insurance plans applicable to salaried employees, cannot be provided under the Corporation’s insurance plans, the Corporation will reimburse you for your premium cost to obtain comparable insurances coverages.

(C) Reimbursement to you pursuant to Section 5(i)(A) or (B) above will be available only to the extent that (1) such expense is actually incurred for any particular calendar year and reasonably substantiated; (2) reimbursement shall be made no later than the end of the calendar year following the year in which such expense is incurred by you; (3) no reimbursement provided for any expense incurred in one taxable year will affect the amount available in another taxable year; and (4) the right to this reimbursement is not subject to liquidation or exchange for another benefit. Notwithstanding the foregoing, no reimbursement will be provided for any expense incurred following the thirty-six month period of benefit continuation or for any expense which relates to coverage after such date.

(j) Notwithstanding any provision of this Agreement to the contrary, to the extent that a payment hereunder is subject to Section 409A of the Code (and not excepted therefrom) and payable on account of your separation from service, such payment shall be delayed for a period of six months after your termination date (or, if earlier, your death) if you are a Specified Employee (namely, a “key employee”, as defined in Section 416(i) of the Code without regard to paragraph (5) thereof, of the Corporation, as determined in accordance with the regulations issued under Code Section 409A and the procedures established by the Corporation). Any such payment that would otherwise have been due or owing during such six-month period will be paid immediately following the end of the six-month period in the month following the month containing the 6-month anniversary of your date of termination, together with interest at the rate provided in Section 1274(b)(2)(B) of the Code.

Mr. Rodney L. Scagline 10

6. Notice of Termination Before a Change in Control. Notwithstanding any other provisions of this Agreement, if prior to a Change in Control there has been any statement made by the person (or an affiliate of such person) involved in such Change in Control to the effect that following such Change in Control any action or actions will be taken that would have the effect of creating a condition described in Section 4(d) that would permit you following a Change in Control to terminate your employment for Good Reason, and such statements have appeared in any proxy statement or other proxy soliciting materials, any tender offer, exchange offer, or prospectus or any other document or press release publicly issued or filed with the Securities and Exchange Commission or other governmental agency in connection with the contemplated Change in Control (including any such documents issued by the Corporation in which such statement is reported), then you shall have the right to notify the Corporation that, unless the condition that would constitute Good Reason is completely remedied prior to the effective date of the Change of Control, you intend to terminate your employment for Good Reason as of the effective date of the Change in Control, in which case your employment shall terminate on the effective date of the Change in Control and you shall be entitled to receive the payments due under Section 5(d) and (e) pursuant to the payment provisions described in Section 5(f).

7. Successors; Binding Agreement.

(a) The Corporation will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Corporation or of any division or subsidiary thereof employing you to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Corporation would be required to perform if no such succession had taken place. Failure of the Corporation to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle you to compensation from the Corporation in the same amount and on the same terms as you would be entitled hereunder if you terminated your employment for Good Reason, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed to be the date of termination of your employment.

(b) This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes any other agreements and understandings, including the Original Agreement.

8. Notice. For the purpose of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid, addressed to the respective addresses set forth on the first page of this Agreement, or to any changed address notice of which either of us shall have given to the other.

9. Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing and signed by

Mr. Rodney L. Scagline 11

you and such officer as may be specifically designated by the Board. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the Commonwealth of Pennsylvania.

10. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

* * *

If this letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Corporation the enclosed copy of this letter, which will then constitute our agreement on this subject.

Sincerely,
AMPCO-PITTSBURGH CORPORATION
By:	/s/ John S. Stanik
Name: John S. Stanik
Title: Chief Executive Officer

UNION ELECTRIC STEEL CORPORATION
By:	/s/ Rose Hoover
Name: Rose Hoover
Title: Vice President

Accepted and Agreed to

this 5th day of May, 2016.

/s/ Rodney L. Scagline

Rodney L. Scagline

EX-31.1

Exhibit 31.1

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, John S. Stanik, certify that:

1. I have reviewed this Form 10-Q of Ampco-Pittsburgh Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ John S. Stanik

John S. Stanik

Director and Chief Executive Officer

May 10, 2016

EX-31.2

Exhibit 31.2

Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Michael G. McAuley, certify that:

1. I have reviewed this Form 10-Q of Ampco-Pittsburgh Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Michael G. McAuley

Michael G. McAuley

Vice President, Chief Financial Officer and Treasurer

May 10, 2016

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ampco-Pittsburgh Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

/s/ John S. Stanik

John S. Stanik

Director and Chief Executive Officer

May 10, 2016

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Ampco-Pittsburgh Corporation (the “Company”) on Form 10-Q for the period ended March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

/s/ Michael G. McAuley

Michael G. McAuley

Vice President, Chief Financial Officer and Treasurer

May 10, 2016

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document And 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	AP
Entity Registrant Name	AMPCO PITTSBURGH CORP
Entity Central Index Key	0000006176
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,216,578

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 60,141	$ 95,122
Receivables, less allowance for doubtful accounts of $998 in 2016 and $983 in 2015	67,971	44,877
Inventories	93,978	59,734
Insurance receivables - asbestos	17,000	17,000
Other current assets	12,102	2,949
Total current assets	251,192	219,682
Property, plant and equipment, net	213,064	146,913
Insurance receivables - asbestos	105,748	108,423
Deferred income tax assets	30,529	20,569
Investments in joint ventures	3,069	3,097
Intangible assets - net	17,371	1,193
Goodwill	36,058	0
Other noncurrent assets	6,591	6,279
Total assets	663,622	506,156
Current liabilities:
Accounts payable	37,890	13,959
Accrued payrolls and employee benefits	18,487	9,183
Debt - current portion	19,364	13,311
Asbestos liability - current portion	21,000	21,000
Other current liabilities	48,049	23,880
Total current liabilities	144,790	81,333
Employee benefit obligations	102,228	63,702
Asbestos liability	144,822	148,849
Noncurrent debt	28,248	0
Other noncurrent liabilities	729	849
Total liabilities	$ 420,817	$ 294,733
Commitments and contingent liabilities (Note 7)
Shareholders' equity:
Common stock - par value $1; authorized 20,000 shares; issued and outstanding 12,217 shares in 2016 and 10,440 in 2015	$ 12,217	$ 10,440
Additional paid-in capital	149,541	128,840
Retained earnings	125,672	129,742
Accumulated other comprehensive loss	(56,209)	(57,599)
Total Ampco-Pittsburgh shareholders' equity	231,221	211,423
Noncontrolling interest	11,584	0
Total shareholders' equity	242,805	211,423
Total liabilities and shareholders' equity	$ 663,622	$ 506,156

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Receivables, allowance for doubtful accounts	$ 998	$ 983
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	12,217,000	10,440,000
Common stock, shares outstanding	12,217,000	10,440,000

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Net sales	$ 63,578	$ 65,087
Operating costs and expenses:
Costs of products sold (excluding depreciation and amortization)	51,105	52,044
Selling and administrative	13,508	9,396
Depreciation and amortization	3,925	3,142
Loss on disposal of assets	3	3
Total operating expenses	68,541	64,585
(Loss) income from operations	(4,963)	502
Other income (expense):
Investment-related income	45	45
Interest expense	(242)	(59)
Other - net	1,164	(366)
Total other income (expense)	967	(380)
(Loss) income before income taxes and equity losses in Chinese joint venture	(3,996)	122
Income tax benefit (provision)	850	(40)
Equity gains (losses) in Chinese joint venture	172	(10)
Net (loss) income	(2,974)	72
Less: Net loss attributable to noncontrolling interest	(84)	0
Net (loss) income attributable to Ampco-Pittsburgh shareholders	$ (2,890)	$ 72
Net (loss) income per common share attributable to Ampco-Pittsburgh:
Basic	$ (0.26)	$ 0.01
Diluted	(0.26)	0.01
Cash dividends declared per share	$ 0.09	$ 0.18
Weighted average number of common shares outstanding:
Basic	11,006	10,426
Diluted	11,006	10,464

XML

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (2,974)	$ 72
Adjustments for changes in:
Foreign currency translation	(315)	(3,741)
Unrecognized employee benefit costs (including effects of foreign currency translation)	649	5,453
Unrealized holding gains on marketable securities	148	4
Fair value of cash flow hedges	18	(85)
Reclassification adjustments for items included in net income:
Amortization of unrecognized employee benefit costs	785	1,874
Realized gains on sale of marketable securities	(30)	0
Realized losses from settlement of cash flow hedges	135	115
Other comprehensive income	1,390	3,620
Comprehensive (loss) income	(1,584)	3,692
Less: Comprehensive loss attributable to noncontrolling interest	(83)	0
Comprehensive (loss) income attributable to Ampco-Pittsburgh	$ (1,501)	$ 3,692

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Cash Flows [Abstract]
Net cash flows (used in) provided by operating activities	$ (5,039)	$ 2,080
Cash flows from investing activities:
Purchases of property, plant and equipment	(562)	(2,493)
Proceeds from the sale of property, plant and equipment	7	0
Purchase of Åkers, net of cash acquired (Note 2)	(27,031)	0
Purchases of long-term marketable securities	(246)	(39)
Proceeds from the sale of long-term marketable securities	193	20
Net cash flows used in investing activities	(27,639)	(2,512)
Cash flows from financing activities:
Dividends paid	(1,879)	(1,877)
Net cash flows used in financing activities	(1,879)	(1,877)
Effect of exchange rate changes on cash and cash equivalents	(424)	(790)
Net decrease in cash and cash equivalents	(34,981)	(3,099)
Cash and cash equivalents at beginning of period	95,122	97,098
Cash and cash equivalents at end of period	60,141	93,999
Supplemental information:
Income tax payments	3,000	2,772
Interest payments	61	59
Non-cash investing activities:
Purchases of property, plant and equipment included in accounts payable	152	656
Non-cash financing activities:
Issuance of common stock to acquire net assets of Åkers (Note 2)	22,137	0
Issuance of debt to acquire net assets of Åkers (Note 2)	$ 25,710	$ 0

XML

Unaudited Condensed Consolidated Financial Statements

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Unaudited Condensed Consolidated Financial Statements

1. Unaudited Condensed Consolidated Financial Statements

The condensed consolidated balance sheet as of March 31, 2016 and the condensed consolidated statements of operations, comprehensive (loss) income and cash flows for the three months ended March 31, 2016 and 2015 have been prepared by Ampco-Pittsburgh Corporation (the “Corporation”) without audit. In the opinion of management, all adjustments, consisting of only normal and recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the periods presented, have been made. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the operating results expected for the full year.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a common revenue standard for U.S. GAAP and IFRS. The guidance establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from a company’s contracts with customers. It requires companies to apply a five-step model when recognizing revenue relating to the transfer of goods or services to customers in an amount that reflects the consideration that the company expects to be entitled to receive for those goods and services. It also requires comprehensive disclosures regarding revenue recognition. The guidance becomes effective January 1, 2018. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, which revises the measurement of inventory at the lower of cost or market. Currently, market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. In accordance with ASU 2015-11, an entity will measure inventory at the lower of cost and net realizable value which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The amendment does not apply to inventory that is measured using last-in, first out (LIFO). The guidance becomes effective January 1, 2017 with earlier application permitted. The Corporation does not expect the guidance will have a significant impact on its financial position, operating results and liquidity.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors will remain similar to existing generally accepted accounting principles. The guidance becomes effective January 1, 2019. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and will be applied on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retroactively or prospectively. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; however, early adoption is permitted if all provisions are adopted in the same period. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

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Acquisition of Åkers AB

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Acquisition of Åkers AB

2. Acquisition of Åkers

On March 3, 2016, the Corporation acquired the stock of Åkers AB and certain of its affiliated companies, including Åkers AB’s 60% equity interest in a Chinese joint venture company (collectively, “Åkers”) from Altor Fund II GP Limited. The base purchase price as of the date of acquisition, subject to certain post-closing adjustments, approximated $77,246 and was comprised of $29,399 in cash, $25,710 in the form of a three-year note, and 1,776,604 shares of common stock of the Corporation which, based on the closing price of the Corporation’s common stock as of the date of closing, had a fair value of $22,137. The note bears interest at 6.5%, compounding annually, with principal and interest payable at maturity on March 3, 2019.

The acquisition adds roll production facilities in Sweden, the United States, Slovenia, and China; 14 sales offices; and a service capability in the United States. It enables cast roll production in the United States, forged roll production in Europe, and a low-cost product alternative for customers. The Corporation’s financial position as of March 31, 2016 includes the acquired assets and assumed liabilities of Åkers at their estimated fair value. Operating results of the acquired entities are included in the Forged and Cast Engineered Products segment. For March 2016, net sales for Åkers approximated $12,583 and loss before income taxes including the effects of purchase accounting approximated $1,006. Acquisition-related transaction costs of approximately $1,800 relating principally to the purchase of Åkers are included in selling and administrative costs.

The estimated fair value of assets acquired and liabilities assumed as of the date of acquisition is summarized below and subject to final adjustments primarily for intangible assets, pre-acquisition contingencies, deferred income taxes and residual goodwill. Goodwill is not amortized for book purposes or deductible for tax purposes. Goodwill is assessed for impairment annually in connection with the Corporation’s strategic planning process or whenever events or circumstances indicate the carrying amount of the asset may not be recoverable.

Current assets (excluding inventories)	$	40,703
Inventories		29,863
Property, plant and equipment		68,140
Intangible assets		15,972
Other noncurrent assets		7,391
Current liabilities		(66,651	)
Noncurrent liabilities		(42,219	)
Net assets acquired		53,199
Noncontrolling interest		(11,666	)
Goodwill		35,713
Base purchase price	$	77,246

These fair value estimates are provisional amounts based on third party valuations that are currently under review. The estimated fair value of acquired intangible assets consists of $6,400 for developed technology, $6,016 for customer relationships, and $3,556 for trade name. The economic life of the acquired intangible assets is estimated to be 5 years for developed technology, 10 years for customer relationships, and indefinite for the trade name. Included in current liabilities is a loan payable to the noncontrolling shareholder of the Chinese joint venture company which, with accrued interest, approximated $7,468 as of the date of acquisition. The interest rate is equal to the “benchmark lending rate” set by the People’s Bank of China. Both the loan and interest were payable as of December 31, 2015 but remain unpaid.

Pro Forma Financial Information for the Åkers Acquisition (unaudited):

The financial information in the table below summarizes the combined results of operations of the Corporation and Åkers on a pro forma basis, for the period in which the acquisition occurred as though the companies had been combined as of the beginning of that period. Pro forma adjustments have been made to (1) include amortization expense on the definite-lived intangible assets identified in the acquisition and interest expense on the note and (2) remove debt-related expenses associated with Åkers’ previous debt facilities not assumed by the Corporation. The following pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred at the beginning of the period presented:

	Three Months Ended March, 31
	2016			2015
Net sales	$	85,128		$	106,610
Loss before income taxes (includes noncontrolling interest)	$	(9,778	)	$	(6,733	)

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Inventories

3 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Inventories

3. Inventories

At March 31, 2016 and December 31, 2015, approximately 51% and 60% respectively, of the inventories were valued on the LIFO method with the remaining inventories valued on the FIFO method. Inventories were comprised of the following:

	March 31, 2016		December 31, 2015
Raw materials	$	22,744	$	18,314
Work-in-process		34,230		21,583
Finished goods		25,016		9,897
Supplies		11,988		9,940
	$	93,978	$	59,734

XML

Property, Plant and Equipment

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

4. Property, Plant and Equipment

Property, plant and equipment were comprised of the following:

	March 31, 2016			December 31, 2015
Land and land improvements	$	10,323		$	5,223
Buildings		65,027			44,570
Machinery and equipment		310,200			266,358
Construction-in-progress		4,669			3,566
Other		6,775			7,774
		396,994			327,491
Accumulated depreciation		(183,930	)		(180,578	)
	$	213,064		$	146,913

Land and buildings of Union Electric Steel UK Limited (“UES-UK”) equal to approximately $2,905 (£2,022) at March 31, 2016 are held as collateral by the trustees of the UES-UK defined benefit pension plan (see Note 6).

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Other Current Liabilities

3 Months Ended

Mar. 31, 2016

Other Liabilities Disclosure [Abstract]

Other Current Liabilities

5. Other Current Liabilities

Other current liabilities were comprised of the following:

	March 31, 2016		December 31, 2015
Customer-related liabilities	$	28,137	$	12,195
Accrued interest payable		2,237		3
Accrued sales commissions		1,253		1,506
Income taxes payable		3,449		3,256
Other		12,973		6,920
	$	48,049	$	23,880

Included in customer-related liabilities are costs expected to be incurred with respect to product warranties. Changes in the liability for product warranty claims consisted of the following:

	Three Months Ended March 31,
	2016			2015
Balance at beginning of the period	$	6,358		$	6,672
Åkers – opening balance sheet liability for warranty claims		6,032			0
Satisfaction of warranty claims		(558	)		(331	)
Provision for warranty claims		613			748
Other, primarily impact from changes in foreign currency exchange rates		135			(153	)
Balance at end of the period	$	12,580		$	6,936

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Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

6. Pension and Other Postretirement Benefits

Contributions were as follows:

	Three Months Ended March 31,
	2016		2015
Foreign defined benefit pension plans	$	430	$	427
Other postretirement benefits (e.g. net payments)	$	241	$	164
U.K. defined contribution pension plan	$	62	$	96
U.S. defined contribution plan	$	503	$	0

In 2015, the U.S. Defined Benefit Plan was amended to freeze benefit accruals and participation in the plan for non-union hourly and salaried participants and, effective January 1, 2016, for employees of the Union Electric Steel Carnegie Steelworkers Location. Benefits under the plan were replaced with employer contributions equaling a 3% base contribution and a matching contribution of up to 4% to the defined contribution plan. The plan changes resulted in a curtailment loss of $1,217 for the three months ended March 31, 2015. Additionally, as part of the Åkers acquisition, the Corporation assumed the obligations for two U.S. defined benefit pension plans, two foreign retirement benefit plans and two other postretirement benefit plans. None of the acquired benefit plans were fully funded as of the acquisition date.

Net periodic pension and other postretirement costs include the following components:

	Three Months Ended March 31,
U.S. Defined Benefit Pension Plans	2016			2015
Service cost	$	346		$	1,130
Interest cost		2,258			2,070
Expected return on plan assets		(3,011	)		(2,741	)
Amortization of prior service cost		105			138
Amortization of actuarial loss		1,128			1,463
Curtailment charge		0			1,217
Net benefit costs	$	826		$	3,277
	Three Months Ended March 31,
Foreign Defined Benefit Pension Plans	2016			2015
Service cost	$	31		$	0
Interest cost		568			597
Expected return on plan assets		(647	)		(668	)
Amortization of actuarial loss		176			210
Net benefit costs	$	128		$	139
	Three Months Ended March 31,
Other Postretirement Benefit Plans	2016			2015
Service cost	$	158		$	75
Interest cost		200			112
Amortization of prior service cost		(258	)		(168	)
Amortization of actuarial loss		37			58
Net benefit costs	$	137		$	77

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Commitments and Contingent Liabilities

3 Months Ended

Mar. 31, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

7. Commitments and Contingent Liabilities

Outstanding standby and commercial letters of credit as of March 31, 2016 approximated $22,080, the majority of which serve as collateral for the Industrial Revenue Bond (“IRB”) debt. In addition, in connection with the acquisition of Åkers, the Corporation issued two surety bonds to PRJ Pensionsgaranti, guaranteeing certain obligations of Åkers Sweden AB and Åkers AB under the credit insurance policy relating to pension commitments. The total amount covered by the guarantees is approximately $4,200 (SEK 33,900).

See Note 8 for derivative instruments, Note 13 for litigation and Note 14 for environmental matters.

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Derivative Instruments

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

8. Derivative Instruments

Certain of the Corporation’s operations are subject to risk from exchange rate fluctuations in connection with sales in foreign currencies. To minimize this risk, foreign currency sales contracts are entered into which are designated as cash flow or fair value hedges. As of March 31, 2016, approximately $14,458 of anticipated foreign-denominated sales has been hedged which are covered by fair value contracts settling at various dates through April 2017. The fair value of assets held as collateral for the fair value contracts as of March 31, 2016 approximated $718.

Additionally, certain of the divisions of the Air and Liquid Processing segment are subject to risk from increases in the price of commodities (copper and aluminum) used in the production of inventory. To minimize this risk, futures contracts are entered into which are designated as cash flow hedges. At March 31, 2016, approximately 43% or $2,486 of anticipated copper purchases over the next 15 months and 56% or $386 of anticipated aluminum purchases over the next six months are hedged.

The Corporation previously entered into foreign currency purchase contracts to manage the volatility associated with Euro-denominated progress payments to be made for certain machinery and equipment. As of December 31, 2010, all contracts had been settled and the underlying fixed assets were placed in service.

No portion of the existing cash flow or fair value hedges is considered to be ineffective, including any ineffectiveness arising from the unlikelihood of an anticipated transaction to occur. Additionally, no amounts have been excluded from assessing the effectiveness of a hedge.

At March 31, 2016, the Corporation has purchase commitments covering 44% or $1,976 of anticipated natural gas usage through 2017 at one of its subsidiaries. The commitments qualify as normal purchases and, accordingly, are not reflected on the condensed consolidated balance sheet. Purchases of natural gas under previously existing commitments approximated $823 and $781 for the three months ended March 31, 2016 and 2015, respectively.

The Corporation does not enter into derivative transactions for speculative purposes and, therefore, holds no derivative instruments for trading purposes.

Gains (losses) on foreign exchange transactions included in other income (expense) approximated $1,173 and $(380) for the three months ended March 31, 2016 and 2015, respectively.

The location and fair value of the foreign currency sales contracts recorded on the condensed consolidated balance sheets were as follows:

	Location	March 31, 2016		December 31, 2015
Cash flow hedge contracts	Other current assets	$	0	$	10
Fair value hedge contracts	Other current assets		1		113
	Other noncurrent assets		0		0
	Other current liabilities		564		258
	Other noncurrent liabilities		60		49
Fair value hedged items	Receivables		134		27
	Other current assets		404		255
	Other noncurrent assets		54		39
	Other current liabilities		3		116
	Other noncurrent liabilities		0		0

The change in the fair value of the cash flow contracts is recorded as a component of accumulated other comprehensive loss. The balances as of March 31, 2016 and 2015 and the amount recognized as and reclassified from accumulated other comprehensive loss for each of the periods is summarized below. All amounts are after-tax.

Three Months Ended March 31, 2016	Comprehensive Income (Loss) Beginning of the Year			Plus Recognized as Comprehensive Income (Loss)			Less Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss			Comprehensive Income (Loss) End of the Period
Foreign currency sales contracts	$	4		$	3		$	7		$	0
Foreign currency purchase contracts		241			0			4			237
Futures contracts – copper and aluminum		(200	)		15			(146	)		(39	)
	$	45		$	18		$	(135	)	$	198
Three Months Ended March 31, 2015
Foreign currency sales contracts	$	0		$	(2	)	$	0		$	(2	)
Foreign currency purchase contracts		258			0			5			253
Futures contracts – copper and aluminum		(173	)		(83	)		(120	)		(136	)
	$	85		$	(85	)	$	(115	)	$	115

The change in fair value reclassified or expected to be reclassified from accumulated other comprehensive loss to earnings is summarized below. All amounts are pre-tax.

	Location of Gain (Loss) in Statements	Estimated to be Reclassified in the Next			Three Months Ended March 31,
	of Operations	12 Months			2016			2015
Foreign currency sales contracts – cash flow hedges	Net sales	$	0		$	10		$	0
Foreign currency purchase contracts	Depreciation		27			7			7
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)		(63	)		(236	)		(194	)

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Accumulated Other Comprehensive Loss

9. Accumulated Other Comprehensive Loss

Net change and ending balances for the various components of accumulated other comprehensive loss as of and for the three months ended March 31, 2016 and 2015 is summarized below. All amounts are net of tax, where applicable.

	Foreign Currency Translation Adjustments			Unrecognized Employee Benefit Costs			Unrealized Holding Gains on Marketable Securities		Cash Flow Hedges		Accumulated Other Comprehensive Loss
Balance at January 1, 2016	$	(8,393	)	$	(49,943	)	$	692	$	45	$	(57,599	)
Net Change		315			1,434			118		153		1,390
Balance at March 31, 2016	$	(8,708	)	$	(48,509	)	$	810	$	198	$	(56,209	)
Balance at January 1, 2015	$	(4,426	)	$	(65,396	)	$	984	$	85	$	(68,753	)
Net Change		(3,741	)		7,327			4		30		3,620
Balance at March 31, 2015	$	(8,167	)	$	(58,069	)	$	988	$	115	$	(65,133	)

The following summarizes the line items affected on the condensed consolidated statements of operations for components reclassified from accumulated other comprehensive loss. Amounts in parentheses represent credits to net income.

	Three Months Ended March 31,
	2016			2015
Amortization of unrecognized employee benefit costs:
Costs of products sold (excluding depreciation)	$	725		$	1,281
Selling and administrative		323			1,595
Other income (expense)		140			42
Total before income tax		1,188			2,918
Income tax provision		(403	)		(1,044	)
Net of tax	$	785		$	1,874
Realized gains on sale of marketable securities:
Selling and administrative	$	(46	)	$	0
Income tax provision		16			0
Net of tax	$	(30	)	$	0
Realized (gains) losses from settlement of cash flow hedges:
Net sales (foreign currency sales contracts)	$	(10	)	$	0
Depreciation (foreign currency purchase contracts)		(7	)		(7	)
Costs of products sold (excluding depreciation) (futures contracts – copper and aluminum)		236			194
Total before income tax		219			187
Income tax provision		(84	)		(72	)
Net of tax	$	135		$	115

The income tax expense (benefit) associated with the various components of other comprehensive income for the three months ended March 31, 2016 and 2015 is summarized below. Foreign currency translation adjustments exclude the effect of income taxes since earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time.

	Three Months Ended March 31,
	2016			2015
Tax expense (benefit) associated with changes in:
Unrealized employee benefit costs	$	(398	)	$	(2,429	)
Unrealized holding gains on marketable securities		(77	)		(2	)
Fair value of cash flow hedges		(9	)		50
Tax expense (benefit) associated with reclassification adjustments:
Amortization of unrecognized employee benefit costs		(403	)		(1,044	)
Realized gains from sale of marketable securities		16			0
Realized losses from settlement of cash flow hedges		(84	)		(72	)

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

10. Stock-Based Compensation

In May 2011, the shareholders of the Corporation approved the adoption of the Ampco-Pittsburgh Corporation 2011 Omnibus Incentive Plan (the “Predecessor Plan”) which authorized the issuance of up to 1,000,000 shares of the Corporation’s common stock for grants of equity-based compensation under the plan. In May 2016, the shareholders of the Corporation approved the adoption of the Ampco-Pittsburgh Corporation 2016 Omnibus Incentive Plan (the “Incentive Plan”), which authorizes the issuance of up to 1,100,000 shares of the Corporation’s common stock for awards under the Incentive Plan. The Incentive Plan replaces the Predecessor Plan and no new awards will be granted under the Predecessor Plan. Any awards outstanding under the Predecessor Plan will remain subject to and be paid under the Predecessor Plan, and any shares subject to outstanding awards under the Predecessor Plan that subsequently expire, terminate, or are surrendered or forfeited for any reason without issuance of shares will automatically become available for issuance under the Incentive Plan.

Awards under the Incentive Plan may include incentive non-qualified stock options, stock appreciation rights, restricted shares and restricted stock units, performance awards, other stock-based awards or short-term cash incentive awards. If any award is canceled, terminates, expires or lapses for any reason prior to the issuance of shares, or if shares are issued under the Incentive Plan and thereafter are forfeited to the Corporation, the shares subject to such awards and the forfeited shares will not count against the aggregate number of shares available under the Incentive Plan. Shares tendered or withheld to pay the option exercise price or tax withholding will continue to count against the aggregate number of shares of common stock available for grant under the Incentive Plan. Any shares repurchased by the Corporation with cash proceeds from the exercise of options will not be added back to the pool of shares available for grant under the Incentive Plan.

The Incentive Plan may be administered by the Board of Directors or the Compensation Committee of the Board of Directors. The Compensation Committee has the authority to determine, within the limits of the express provisions of the Incentive Plan, the individuals to whom the awards will be granted and the nature, amount and terms of such awards.

The Incentive Plan also provides for equity-based awards during any one year to non-employee members of the Board of Directors, based on the grant date fair value, not to exceed $200. The limit does not apply to shares received by a non-employee director at his or her election in lieu of all or a portion of the director’s retainer for board service. In May 2016, 32,090 shares of the Corporation’s common stock were granted to the non-employee directors.

Stock-based compensation expense for the three months ended March 31, 2016 and 2015 equaled $329 and $225, respectively. The related income tax benefit recognized in the condensed consolidated statements of operations for each of the periods was approximately $115 and $79, respectively.

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Fair Value

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value

11. Fair Value

The Corporation’s financial assets and liabilities that are reported at fair value in the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 were as follows:

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
As of March 31, 2016
Investments
Other noncurrent assets	$	3,829	$	0	$	0	$	3,829
Foreign currency exchange contracts
Other current assets		0		405		0		405
Other noncurrent assets		0		54		0		54
Other current liabilities		0		567		0		567
Other noncurrent liabilities		0		60		0		60
As of December 31, 2015
Investments
Other noncurrent assets	$	3,663	$	0	$	0	$	3,663
Foreign currency exchange contracts
Other current assets		0		378		0		378
Other noncurrent assets		0		39		0		39
Other current liabilities		0		374		0		374
Other noncurrent liabilities		0		49		0		49

The investments held as other noncurrent assets represent assets held in a “Rabbi” trust for the purpose of providing benefits under a non-qualified defined benefit pension plan. The fair value of the investments is based on quoted prices of the investments in active markets. The fair value of foreign currency exchange contracts is determined based on the fair value of similar contracts with similar terms and remaining maturities. The fair value of futures contracts is based on market quotations. The fair value of the variable-rate IRB debt approximates its carrying value. Additionally, the fair value of trade receivables and trade payables approximates their carrying value.

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Business Segments

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segments

12. Business Segments

Presented below are the net sales and (loss) income before income taxes for the Corporation’s two business segments.

	Three Months Ended March 31,
	2016			2015
Net sales:
Forged and Cast Engineered Products	$	41,527		$	42,773
Air and Liquid Processing		22,051			22,314
Total Reportable Segments	$	63,578		$	65,087
(Loss) income before income taxes:
Forged and Cast Engineered Products	$	(2,470	)	$	1,627
Air and Liquid Processing		2,634			2,073
Total Reportable Segments		164			3,700
Other expense, including corporate costs		(4,160	)		(3,578	)
Total	$	(3,996	)	$	122

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Litigation

3 Months Ended

Mar. 31, 2016

Text Block [Abstract]

Litigation

13. Litigation (claims not in thousands)

The Corporation and its subsidiaries are involved in various claims and lawsuits incidental to their businesses and are also subject to asbestos litigation as described below.

Asbestos Litigation

Claims have been asserted alleging personal injury from exposure to asbestos-containing components historically used in some products of predecessors of Air & Liquid Systems Corporation (“Asbestos Liability”). Those subsidiaries, and in some cases the Corporation, are defendants (among a number of defendants, often in excess of 50) in cases filed in various state and federal courts.

Asbestos Claims

The following table reflects approximate information about the claims for Asbestos Liability against the subsidiaries and the Corporation for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016			2015
Total claims pending at the beginning of the period		6,212			8,457
New claims served		397			372
Claims dismissed		(90	)		(311	)
Claims settled		(80	)		(120	)
Total claims pending at the end of the period (1)		6,439			8,398
Gross settlement and defense costs (in 000’s)	$	4,027		$	5,083
Avg. gross settlement and defense costs per claim resolved (in 000’s)	$	23.69		$	11.79

(1) Included as “open claims” are approximately 427 and 1,645 claims as of March 31, 2016 and 2015, respectively, classified in various jurisdictions as “inactive” or transferred to a state or federal judicial panel on multi-district litigation, commonly referred to as the MDL.

A substantial majority of the settlement and defense costs reflected in the above table was reported and paid by insurers. Because claims are often filed and can be settled or dismissed in large groups, the amount and timing of settlements, as well as the number of open claims, can fluctuate significantly from period to period.

Asbestos Insurance

The Corporation and its Air & Liquid Systems Corporation (“Air & Liquid”) subsidiary are parties to a series of settlement agreements (“Settlement Agreements”) with insurers that have coverage obligations for Asbestos Liability (the “Settling Insurers”). Under the Settlement Agreements, the Settling Insurers accept financial responsibility, subject to the terms and conditions of the respective agreements, including overall coverage limits, for pending and future claims for Asbestos Liability. The Settlement Agreements encompass the substantial majority of insurance policies that provide coverage for claims for Asbestos Liability.

The Settlement Agreements include acknowledgements that Howden North America, Inc. (“Howden”) is entitled to coverage under policies covering Asbestos Liability for claims arising out of the historical products manufactured or distributed by Buffalo Forge, a former subsidiary of the Corporation (the “Products”). The Settlement Agreements do not provide for any prioritization on access to the applicable policies or any sublimits of liability as to Howden or the Corporation and Air & Liquid, and, accordingly, Howden may access the coverage afforded by the Settling Insurers for any covered claim arising out of a Product. In general, access by Howden to the coverage afforded by the Settling Insurers for the Products will erode coverage under the Settlement Agreements available to the Corporation and Air & Liquid for Asbestos Liability.

On February 24, 2011, the Corporation and Air & Liquid filed a lawsuit in the United States District Court for the Western District of Pennsylvania against thirteen domestic insurance companies, certain underwriters at Lloyd’s, London and certain London market insurance companies, and Howden. The lawsuit seeks a declaratory judgment regarding the respective rights and obligations of the parties under excess insurance policies that were issued to the Corporation from 1981 through 1984 as respects claims against the Corporation and its subsidiary for Asbestos Liability and as respects asbestos bodily-injury claims against Howden arising from the Products. The Corporation and Air & Liquid have reached Settlement Agreements with all but two of the defendant insurers in the coverage action. Those Settlement Agreements specify the terms and conditions upon which the insurer parties are to contribute to defense and indemnity costs for claims for Asbestos Liability. One of the Settlement Agreements entered into by the Corporation and Air & Liquid also provided for the dismissal of claims, without prejudice, regarding two upper-level excess policies issued by one of the insurers. The Court has entered Orders dismissing all claims in the action filed against each other by the Corporation and Air & Liquid, on the one hand, and by the settling insurers, on the other. Howden also reached an agreement with eight domestic insurers addressing asbestos-related bodily injury claims arising from the Products, and claims as to those insurers and Howden have been dismissed. Various counterclaims, cross claims and third party claims have been filed in the litigation and remain pending although only two domestic insurers and Howden remain in the litigation as to the Corporation and Air & Liquid. On September 27, 2013, the Court issued a memorandum opinion and order granting in part and denying in part cross motions for summary judgment filed by the Corporation and Air & Liquid, Howden, and the insurer parties still in the litigation. On February 26, 2015, the Court issued final judgment. One insurer filed a notice of appeal from the judgment to the U.S. Court of Appeals to the Third Circuit; as a result, several other insurers, Howden, the Corporation, and Air & Liquid filed notices of case appeal. The appeals are presently pending, and the parties have been involved in a mediation through the Third Circuit’s mediator’s office.

Asbestos Valuations

In 2006, the Corporation retained Hamilton, Rabinovitz & Associates, Inc. (“HR&A”), a nationally recognized expert in the valuation of asbestos liabilities, to assist the Corporation in estimating the potential liability for pending and unasserted future claims for Asbestos Liability. HR&A was not requested to estimate asbestos claims against the inactive subsidiary in dissolution, which the Corporation believes are immaterial. Based on this analysis, the Corporation recorded a reserve for Asbestos Liability claims pending or projected to be asserted through 2013 as of December 31, 2006. HR&A’s analysis has been periodically updated since that time. Most recently, the HR&A analysis was updated in 2014, and additional reserves were established by the Corporation as of December 31, 2014 for Asbestos Liability claims pending or projected to be asserted through 2024. The methodology used by HR&A in its projection in 2014 of the operating subsidiaries’ liability for pending and unasserted potential future claims for Asbestos Liability, which is substantially the same as the methodology employed by HR&A in prior estimates, relied upon and included the following factors:

• HR&A’s interpretation of a widely accepted forecast of the population likely to have been exposed to asbestos;

• epidemiological studies estimating the number of people likely to develop asbestos-related diseases;

• HR&A’s analysis of the number of people likely to file an asbestos-related injury claim against the subsidiaries and the Corporation based on such epidemiological data and relevant claims history from January 1, 2012 to December 8, 2014;

• an analysis of pending cases, by type of injury claimed and jurisdiction where the claim is filed;

• an analysis of claims resolution history from January 1, 2012 to December 8, 2014 to determine the average settlement value of claims, by type of injury claimed and jurisdiction of filing; and

• an adjustment for inflation in the future average settlement value of claims, at an annual inflation rate based on the Congressional Budget Office’s ten year forecast of inflation.

Using this information, HR&A estimated in 2014 the number of future claims for Asbestos Liability that would be filed through the year 2024, as well as the settlement or indemnity costs that would be incurred to resolve both pending and future unasserted claims through 2024. This methodology has been accepted by numerous courts.

In conjunction with developing the aggregate liability estimate referenced above, the Corporation also developed an estimate of probable insurance recoveries for its Asbestos Liabilities. In developing the estimate, the Corporation considered HR&A’s projection for settlement or indemnity costs for Asbestos Liability and management’s projection of associated defense costs (based on the current defense to indemnity cost ratio), as well as a number of additional factors. These additional factors included the Settlement Agreements then in effect, policy exclusions, policy limits, policy provisions regarding coverage for defense costs, attachment points, prior impairment of policies and gaps in the coverage, policy exhaustions, insolvencies among certain of the insurance carriers, and the nature of the underlying claims for Asbestos Liability asserted against the subsidiaries and the Corporation as reflected in the Corporation’s asbestos claims database, as well as estimated erosion of insurance limits on account of claims against Howden arising out of the Products. In addition to consulting with the Corporation’s outside legal counsel on these insurance matters, the Corporation consulted with a nationally-recognized insurance consulting firm it retained to assist the Corporation with certain policy allocation matters that also are among the several factors considered by the Corporation when analyzing potential recoveries from relevant historical insurance for Asbestos Liabilities. Based upon all of the factors considered by the Corporation, and taking into account the Corporation’s analysis of publicly available information regarding the credit-worthiness of various insurers, the Corporation estimated the probable insurance recoveries for Asbestos Liability and defense costs through 2024. Although the Corporation believes that the assumptions employed in the insurance valuation were reasonable and previously consulted with its outside legal counsel and insurance consultant regarding those assumptions, there are other assumptions that could have been employed that would have resulted in materially lower insurance recovery projections.

Based on the analyses described above, the Corporation’s reserve at December 31, 2014 for the total costs, including defense costs, for Asbestos Liability claims pending or projected to be asserted through 2024 was $189,048 of which approximately 64% was attributable to settlement costs for unasserted claims projected to be filed through 2024 and future defense costs. The reserve at March 31, 2016 was $165,822. While it is reasonably possible that the Corporation will incur additional charges for Asbestos Liability and defense costs in excess of the amounts currently reserved, the Corporation believes that there is too much uncertainty to provide for reasonable estimation of the number of future claims, the nature of such claims and the cost to resolve them beyond 2024. Accordingly, no reserve has been recorded for any costs that may be incurred after 2024.

The Corporation’s receivable at December 31, 2014 for insurance recoveries attributable to the claims for which the Corporation’s Asbestos Liability reserve has been established, including the portion of incurred defense costs covered by the Settlement Agreements in effect through December 31, 2014, and the probable payments and reimbursements relating to the estimated indemnity and defense costs for pending and unasserted future Asbestos Liability claims, was $140,651 ($122,748 at March 31, 2016).

The following table summarizes activity relating to insurance recoveries.

	Three Months Ended March 31,
	2016			2015
Insurance receivable – asbestos, beginning of the year	$	125,423		$	140,651
Settlement and defense costs paid by insurance carriers		(2,675	)		(3,844	)
Insurance receivable – asbestos, end of the period	$	122,748		$	136,807

The insurance receivable recorded by the Corporation does not assume any recovery from insolvent carriers and a substantial majority of the insurance recoveries deemed probable was from insurance companies rated A – (excellent) or better by A.M. Best Corporation. There can be no assurance, however, that there will not be further insolvencies among the relevant insurance carriers, or that the assumed percentage recoveries for certain carriers will prove correct. The difference between insurance recoveries and projected costs is not due to exhaustion of all insurance coverage for Asbestos Liability. The Corporation and the subsidiaries have substantial additional insurance coverage which the Corporation expects to be available for Asbestos Liability claims and defense costs that the subsidiaries and it may incur after 2024. However, this insurance coverage also can be expected to have gaps creating significant shortfalls of insurance recoveries as against claims expense, which could be material in future years.

The amounts recorded by the Corporation for Asbestos Liabilities and insurance receivables rely on assumptions that are based on currently known facts and strategy. The Corporation’s actual expenses or insurance recoveries could be significantly higher or lower than those recorded if assumptions used in the Corporation’s or HR&A’s calculations vary significantly from actual results. Key variables in these assumptions are identified above and include the number and type of new claims to be filed each year, the average cost of disposing of each such new claim, average annual defense costs, compliance by relevant parties with the terms of the Settlement Agreements, the resolution of remaining coverage issues with insurance carriers, and the solvency risk with respect to the relevant insurance carriers. Other factors that may affect the Corporation’s Asbestos Liability and ability to recover under its insurance policies include uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, reforms that may be made by state and federal courts, and the passage of state or federal tort reform legislation.

The Corporation intends to evaluate its estimated Asbestos Liability and related insurance receivables as well as the underlying assumptions on a regular basis to determine whether any adjustments to the estimates are required. Due to the uncertainties surrounding asbestos litigation and insurance, these regular reviews may result in the Corporation incurring future charges; however, the Corporation is currently unable to estimate such future charges. Adjustments, if any, to the Corporation’s estimate of its recorded Asbestos Liability and/or insurance receivables could be material to operating results for the periods in which the adjustments to the liability or receivable are recorded, and to the Corporation’s liquidity and consolidated financial position.

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Environmental Matters

3 Months Ended

Mar. 31, 2016

Environmental Remediation Obligations [Abstract]

Environmental Matters

14. Environmental Matters

The Corporation is currently performing certain remedial actions in connection with the sale of real estate previously owned. Environmental exposures are difficult to assess and estimate for numerous reasons including lack of reliable data, the multiplicity of possible solutions, the years of remedial and monitoring activity required, and identification of new sites. In the opinion of management and in consideration of advice from the Corporation’s consultants, the potential liability for all environmental proceedings of approximately $300 recorded at March 31, 2016 is considered adequate based on information known to date.

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Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent Event

In April 2016, the Corporation elected to freeze salary benefit accruals and participation in one of the U.S. defined benefit pension plans assumed as a result of the Åkers acquisition. Effective June 1, 2016, benefits under the plan will be replaced with employer non-elective contributions equaling 3% of compensation. Participants in the plan currently receive an employer matching contribution. The Corporation is currently evaluating the financial statement effect of this modification.

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Unaudited Condensed Consolidated Financial Statements (Policies)

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Unaudited Condensed Consolidated Financial Statements

The condensed consolidated balance sheet as of March 31, 2016 and the condensed consolidated statements of operations, comprehensive (loss) income and cash flows for the three months ended March 31, 2016 and 2015 have been prepared by Ampco-Pittsburgh Corporation (the “Corporation”) without audit. In the opinion of management, all adjustments, consisting of only normal and recurring adjustments necessary to present fairly the financial position, results of operations and cash flows for the periods presented, have been made. The results of operations for the three months ended March 31, 2016 are not necessarily indicative of the operating results expected for the full year.

Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides a common revenue standard for U.S. GAAP and IFRS. The guidance establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from a company’s contracts with customers. It requires companies to apply a five-step model when recognizing revenue relating to the transfer of goods or services to customers in an amount that reflects the consideration that the company expects to be entitled to receive for those goods and services. It also requires comprehensive disclosures regarding revenue recognition. The guidance becomes effective January 1, 2018. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory, which revises the measurement of inventory at the lower of cost or market. Currently, market could be replacement cost, net realizable value, or net realizable value less an approximately normal profit margin. In accordance with ASU 2015-11, an entity will measure inventory at the lower of cost and net realizable value which is defined as the estimated selling price in the ordinary course of business less reasonably predictable costs of completion, disposal and transportation. The amendment does not apply to inventory that is measured using last-in, first out (LIFO). The guidance becomes effective January 1, 2017 with earlier application permitted. The Corporation does not expect the guidance will have a significant impact on its financial position, operating results and liquidity.

In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with a term of more than one year. Accounting by lessors will remain similar to existing generally accepted accounting principles. The guidance becomes effective January 1, 2019. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled and will be applied on a prospective basis. The guidance also requires presentation of excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity, and can be applied retroactively or prospectively. The amended guidance will be effective for interim and annual periods beginning after December 15, 2016; however, early adoption is permitted if all provisions are adopted in the same period. The Corporation is currently evaluating the impact the guidance will have on its financial position, operating results and liquidity.

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Acquisition of Åkers AB (Tables)

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed

The estimated fair value of assets acquired and liabilities assumed as of the date of acquisition is summarized below and subject to final adjustments primarily for intangible assets, pre-acquisition contingencies, deferred income taxes and residual goodwill. Goodwill is not amortized for book purposes or deductible for tax purposes. Goodwill is assessed for impairment annually in connection with the Corporation’s strategic planning process or whenever events or circumstances indicate the carrying amount of the asset may not be recoverable.

Current assets (excluding inventories)	$	40,703
Inventories		29,863
Property, plant and equipment		68,140
Intangible assets		15,972
Other noncurrent assets		7,391
Current liabilities		(66,651	)
Noncurrent liabilities		(42,219	)
Net assets acquired		53,199
Noncontrolling interest		(11,666	)
Goodwill		35,713
Base purchase price	$	77,246

Summary of Pro Forma Financial Information

The following pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved had the acquisition occurred at the beginning of the period presented:

	Three Months Ended March, 31
	2016			2015
Net sales	$	85,128		$	106,610
Loss before income taxes (includes noncontrolling interest)	$	(9,778	)	$	(6,733	)

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Inventories (Tables)

3 Months Ended

Mar. 31, 2016

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories were comprised of the following:

	March 31, 2016		December 31, 2015
Raw materials	$	22,744	$	18,314
Work-in-process		34,230		21,583
Finished goods		25,016		9,897
Supplies		11,988		9,940
	$	93,978	$	59,734

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Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2016

Property, Plant and Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment were comprised of the following:

	March 31, 2016			December 31, 2015
Land and land improvements	$	10,323		$	5,223
Buildings		65,027			44,570
Machinery and equipment		310,200			266,358
Construction-in-progress		4,669			3,566
Other		6,775			7,774
		396,994			327,491
Accumulated depreciation		(183,930	)		(180,578	)
	$	213,064		$	146,913

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Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2016

Other Liabilities Disclosure [Abstract]

Schedule of Other Current Liabilities

Other current liabilities were comprised of the following:

	March 31, 2016		December 31, 2015
Customer-related liabilities	$	28,137	$	12,195
Accrued interest payable		2,237		3
Accrued sales commissions		1,253		1,506
Income taxes payable		3,449		3,256
Other		12,973		6,920
	$	48,049	$	23,880

Schedule of Changes in Liability for Product Warranty Claims

Changes in the liability for product warranty claims consisted of the following:

	Three Months Ended March 31,
	2016			2015
Balance at beginning of the period	$	6,358		$	6,672
Åkers – opening balance sheet liability for warranty claims		6,032			0
Satisfaction of warranty claims		(558	)		(331	)
Provision for warranty claims		613			748
Other, primarily impact from changes in foreign currency exchange rates		135			(153	)
Balance at end of the period	$	12,580		$	6,936

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Pension and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2016

Compensation and Retirement Disclosure [Abstract]

Contributions for Pension and Other Postretirement Benefits

Contributions were as follows:

	Three Months Ended March 31,
	2016		2015
Foreign defined benefit pension plans	$	430	$	427
Other postretirement benefits (e.g. net payments)	$	241	$	164
U.K. defined contribution pension plan	$	62	$	96
U.S. defined contribution plan	$	503	$	0

Net Periodic Pension and Other Postretirement Costs

Net periodic pension and other postretirement costs include the following components:

	Three Months Ended March 31,
U.S. Defined Benefit Pension Plans	2016			2015
Service cost	$	346		$	1,130
Interest cost		2,258			2,070
Expected return on plan assets		(3,011	)		(2,741	)
Amortization of prior service cost		105			138
Amortization of actuarial loss		1,128			1,463
Curtailment charge		0			1,217
Net benefit costs	$	826		$	3,277
	Three Months Ended March 31,
Foreign Defined Benefit Pension Plans	2016			2015
Service cost	$	31		$	0
Interest cost		568			597
Expected return on plan assets		(647	)		(668	)
Amortization of actuarial loss		176			210
Net benefit costs	$	128		$	139
	Three Months Ended March 31,
Other Postretirement Benefit Plans	2016			2015
Service cost	$	158		$	75
Interest cost		200			112
Amortization of prior service cost		(258	)		(168	)
Amortization of actuarial loss		37			58
Net benefit costs	$	137		$	77

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Derivative Instruments (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Location and Fair Value of Foreign Currency Sales Contracts Recorded on Condensed Consolidated Balance Sheets

The location and fair value of the foreign currency sales contracts recorded on the condensed consolidated balance sheets were as follows:

	Location	March 31, 2016		December 31, 2015
Cash flow hedge contracts	Other current assets	$	0	$	10
Fair value hedge contracts	Other current assets		1		113
	Other noncurrent assets		0		0
	Other current liabilities		564		258
	Other noncurrent liabilities		60		49
Fair value hedged items	Receivables		134		27
	Other current assets		404		255
	Other noncurrent assets		54		39
	Other current liabilities		3		116
	Other noncurrent liabilities		0		0

Summary of Amount Recognized as and Reclassified from Accumulated Other Comprehensive Loss

The change in the fair value of the cash flow contracts is recorded as a component of accumulated other comprehensive loss. The balances as of March 31, 2016 and 2015 and the amount recognized as and reclassified from accumulated other comprehensive loss for each of the periods is summarized below. All amounts are after-tax.

Three Months Ended March 31, 2016	Comprehensive Income (Loss) Beginning of the Year			Plus Recognized as Comprehensive Income (Loss)			Less Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss			Comprehensive Income (Loss) End of the Period
Foreign currency sales contracts	$	4		$	3		$	7		$	0
Foreign currency purchase contracts		241			0			4			237
Futures contracts – copper and aluminum		(200	)		15			(146	)		(39	)
	$	45		$	18		$	(135	)	$	198
Three Months Ended March 31, 2015
Foreign currency sales contracts	$	0		$	(2	)	$	0		$	(2	)
Foreign currency purchase contracts		258			0			5			253
Futures contracts – copper and aluminum		(173	)		(83	)		(120	)		(136	)
	$	85		$	(85	)	$	(115	)	$	115

Summary of Change in Fair Value Reclassified or Expected to be Reclassified from Accumulated Other Comprehensive Loss to Earnings

The change in fair value reclassified or expected to be reclassified from accumulated other comprehensive loss to earnings is summarized below. All amounts are pre-tax.

	Location of Gain (Loss) in Statements	Estimated to be Reclassified in the Next			Three Months Ended March 31,
	of Operations	12 Months			2016			2015
Foreign currency sales contracts – cash flow hedges	Net sales	$	0		$	10		$	0
Foreign currency purchase contracts	Depreciation		27			7			7
Futures contracts – copper and aluminum	Costs of products sold (excluding depreciation and amortization)		(63	)		(236	)		(194	)

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2016

Equity [Abstract]

Net Change and Ending Balances for Various Components of Accumulated Other Comprehensive Loss

Net change and ending balances for the various components of accumulated other comprehensive loss as of and for the three months ended March 31, 2016 and 2015 is summarized below. All amounts are net of tax, where applicable.

	Foreign Currency Translation Adjustments			Unrecognized Employee Benefit Costs			Unrealized Holding Gains on Marketable Securities		Cash Flow Hedges		Accumulated Other Comprehensive Loss
Balance at January 1, 2016	$	(8,393	)	$	(49,943	)	$	692	$	45	$	(57,599	)
Net Change		315			1,434			118		153		1,390
Balance at March 31, 2016	$	(8,708	)	$	(48,509	)	$	810	$	198	$	(56,209	)
Balance at January 1, 2015	$	(4,426	)	$	(65,396	)	$	984	$	85	$	(68,753	)
Net Change		(3,741	)		7,327			4		30		3,620
Balance at March 31, 2015	$	(8,167	)	$	(58,069	)	$	988	$	115	$	(65,133	)

Line Items Affected on Condensed Consolidated Statements of Operations for Components Reclassified from Accumulated Other Comprehensive Loss

The following summarizes the line items affected on the condensed consolidated statements of operations for components reclassified from accumulated other comprehensive loss. Amounts in parentheses represent credits to net income.

	Three Months Ended March 31,
	2016			2015
Amortization of unrecognized employee benefit costs:
Costs of products sold (excluding depreciation)	$	725		$	1,281
Selling and administrative		323			1,595
Other income (expense)		140			42
Total before income tax		1,188			2,918
Income tax provision		(403	)		(1,044	)
Net of tax	$	785		$	1,874
Realized gains on sale of marketable securities:
Selling and administrative	$	(46	)	$	0
Income tax provision		16			0
Net of tax	$	(30	)	$	0
Realized (gains) losses from settlement of cash flow hedges:
Net sales (foreign currency sales contracts)	$	(10	)	$	0
Depreciation (foreign currency purchase contracts)		(7	)		(7	)
Costs of products sold (excluding depreciation) (futures contracts – copper and aluminum)		236			194
Total before income tax		219			187
Income tax provision		(84	)		(72	)
Net of tax	$	135		$	115

Summary of Income Tax Expense (Benefit) Associated with Various Components of Other Comprehensive Income

The income tax expense (benefit) associated with the various components of other comprehensive income for the three months ended March 31, 2016 and 2015 is summarized below. Foreign currency translation adjustments exclude the effect of income taxes since earnings of non-U.S. subsidiaries are deemed to be reinvested for an indefinite period of time.

	Three Months Ended March 31,
	2016			2015
Tax expense (benefit) associated with changes in:
Unrealized employee benefit costs	$	(398	)	$	(2,429	)
Unrealized holding gains on marketable securities		(77	)		(2	)
Fair value of cash flow hedges		(9	)		50
Tax expense (benefit) associated with reclassification adjustments:
Amortization of unrecognized employee benefit costs		(403	)		(1,044	)
Realized gains from sale of marketable securities		16			0
Realized losses from settlement of cash flow hedges		(84	)		(72	)

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Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Assets and Liabilities

The Corporation’s financial assets and liabilities that are reported at fair value in the condensed consolidated balance sheets as of March 31, 2016 and December 31, 2015 were as follows:

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
As of March 31, 2016
Investments
Other noncurrent assets	$	3,829	$	0	$	0	$	3,829
Foreign currency exchange contracts
Other current assets		0		405		0		405
Other noncurrent assets		0		54		0		54
Other current liabilities		0		567		0		567
Other noncurrent liabilities		0		60		0		60
As of December 31, 2015
Investments
Other noncurrent assets	$	3,663	$	0	$	0	$	3,663
Foreign currency exchange contracts
Other current assets		0		378		0		378
Other noncurrent assets		0		39		0		39
Other current liabilities		0		374		0		374
Other noncurrent liabilities		0		49		0		49

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segment Net Sales and (Loss) Income before Income Taxes

Presented below are the net sales and (loss) income before income taxes for the Corporation’s two business segments.

	Three Months Ended March 31,
	2016			2015
Net sales:
Forged and Cast Engineered Products	$	41,527		$	42,773
Air and Liquid Processing		22,051			22,314
Total Reportable Segments	$	63,578		$	65,087
(Loss) income before income taxes:
Forged and Cast Engineered Products	$	(2,470	)	$	1,627
Air and Liquid Processing		2,634			2,073
Total Reportable Segments		164			3,700
Other expense, including corporate costs		(4,160	)		(3,578	)
Total	$	(3,996	)	$	122

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Litigation (Tables)

3 Months Ended

Mar. 31, 2016

Text Block [Abstract]

Schedule of Loss Contingencies by Contingency

The following table reflects approximate information about the claims for Asbestos Liability against the subsidiaries and the Corporation for the three months ended March 31, 2016 and 2015:

	Three Months Ended March 31,
	2016			2015
Total claims pending at the beginning of the period		6,212			8,457
New claims served		397			372
Claims dismissed		(90	)		(311	)
Claims settled		(80	)		(120	)
Total claims pending at the end of the period (1)		6,439			8,398
Gross settlement and defense costs (in 000’s)	$	4,027		$	5,083
Avg. gross settlement and defense costs per claim resolved (in 000’s)	$	23.69		$	11.79

(1) Included as “open claims” are approximately 427 and 1,645 claims as of March 31, 2016 and 2015, respectively, classified in various jurisdictions as “inactive” or transferred to a state or federal judicial panel on multi-district litigation, commonly referred to as the MDL.

Summary of Activity in Asbestos Insurance Recoveries

The following table summarizes activity relating to insurance recoveries.

	Three Months Ended March 31,
	2016			2015
Insurance receivable – asbestos, beginning of the year	$	125,423		$	140,651
Settlement and defense costs paid by insurance carriers		(2,675	)		(3,844	)
Insurance receivable – asbestos, end of the period	$	122,748		$	136,807

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Acquisition of Akers AB - Additional Information (Detail) $ in Thousands	Mar. 03, 2016 USD ($) Office shares
Akers AB [Member]
Business Acquisition [Line Items]
Business acquisition, equity interest acquired	60.00%
Total base purchase price	$ 77,246
Purchase price in the form of cash	29,399
Purchase price in the form of three-year note	$ 25,710
Purchase price in the form of shares | shares	1,776,604
Business acquisition, fair value	$ 22,137
Debt, interest rate	6.50%
Debt, maturity date	Mar. 03, 2019
Business acquisition, net sales	$ 12,583
Acquisition-related transaction costs	1,800
Business acquisition, loss before income taxes	1,006
Intangible assets acquired	15,972
Loans payable with accrued interest	$ 7,468
Akers AB [Member] | Developed Technology [Member]
Business Acquisition [Line Items]
Acquired intangible assets, economic lives	5 years
Intangible assets acquired	$ 6,400
Akers AB [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Acquired intangible assets, economic lives	10 years
Intangible assets acquired	$ 6,016
Akers AB [Member] | Trade Name [Member]
Business Acquisition [Line Items]
Intangible assets acquired	$ 3,556
U.S. [Member]
Business Acquisition [Line Items]
Number of sales offices | Office	14

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Acquisition of Akers AB - Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 03, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill	$ 36,058		$ 0
Akers AB [Member]
Business Acquisition [Line Items]
Current assets (excluding inventories)		$ 40,703
Inventories		29,863
Property, plant and equipment		68,140
Intangible assets		15,972
Other noncurrent assets		7,391
Current liabilities		(66,651)
Noncurrent liabilities		(42,219)
Net assets acquired		53,199
Noncontrolling interest		(11,666)
Goodwill		35,713
Base purchase price		$ 77,246

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Acquisition of Akers AB - Summary of Pro Forma Financial Information (Detail) - Akers AB [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Net sales	$ 85,128	$ 106,610
Loss before income taxes (includes noncontrolling interest)	$ (9,778)	$ (6,733)

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Inventories - Additional Information (Detail)	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Percentage of inventories valued on the LIFO method	51.00%	60.00%

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Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 22,744	$ 18,314
Work-in-process	34,230	21,583
Finished goods	25,016	9,897
Supplies	11,988	9,940
Inventories	$ 93,978	$ 59,734

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Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 396,994	$ 327,491
Accumulated depreciation	(183,930)	(180,578)
Property, plant and equipment, Net	213,064	146,913
Land and Land Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	10,323	5,223
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	65,027	44,570
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	310,200	266,358
Construction-in-Progress [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	4,669	3,566
Other [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment, Gross	$ 6,775	$ 7,774

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Property, Plant and Equipment - Additional Information (Detail) - Mar. 31, 2016 £ in Thousands, $ in Thousands	USD ($)	GBP (£)
Property, Plant and Equipment [Abstract]
Land and Building	$ 2,905	£ 2,022

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Other Current Liabilities - Schedule of Other Current Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other Liabilities Disclosure [Abstract]
Customer-related liabilities	$ 28,137	$ 12,195
Accrued interest payable	2,237	3
Accrued sales commissions	1,253	1,506
Income taxes payable	3,449	3,256
Other	12,973	6,920
Other current liabilities	$ 48,049	$ 23,880

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Other Current Liabilities - Schedule of Changes in Liability for Product Warranty Claims (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other Liabilities Disclosure [Abstract]
Balance at the beginning of the year	$ 6,358	$ 6,672
Åkers - opening balance sheet liability for warranty claims	6,032	0
Satisfaction of warranty claims	(558)	(331)
Provision for warranty claims	613	748
Other, primarily impact from changes in foreign currency exchange rates	135	(153)
Balance at the end of the year	$ 12,580	$ 6,936

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Pension and Other Postretirement Benefits - Contributions for Pension and Other Postretirement Benefits (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Foreign Defined Benefit Pension Plans [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Contributions	$ 430	$ 427
Other Postretirement Benefit Plans [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Contributions	241	164
U.K. Defined Contribution Pension Plan [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Contributions	62	96
U.S. Defined Contribution Plan [Member]
Pension Plans, Postretirement and Other Employee Benefits [Line Items]
Contributions	$ 503	$ 0

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Pension and Other Postretirement Benefits - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) RetirementPlans Pension_Plan	Mar. 31, 2015 USD ($)
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Defined benefit pension contribution plan, base contribution rate	3.00%
Electric Steel Corporation Carnegie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Number of postretirement benefit plans | RetirementPlans	2
Maximum [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Defined benefit pension contribution plan, matching contribution rate	4.00%
Remeasurement of Pension Plan Liability [Member] | Electric Steel Corporation Carnegie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Curtailment losses | $	$ 1,217
U.S. Defined Benefit Pension Plans [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Curtailment losses | $	$ 0	$ 1,217
U.S. Defined Benefit Pension Plans [Member] | Electric Steel Corporation Carnegie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Number of defined benefit pension plans | Pension_Plan	2
Foreign Defined Benefit Pension Plans [Member] | Electric Steel Corporation Carnegie [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]
Number of defined benefit pension plans | Pension_Plan	2

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Pension and Other Postretirement Benefits - Net Periodic Pension and Other Postretirement Costs (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
U.S. Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 346	$ 1,130
Interest cost	2,258	2,070
Expected return on plan assets	(3,011)	(2,741)
Amortization of prior service cost	105	138
Amortization of actuarial loss	1,128	1,463
Curtailment charge	0	1,217
Net benefit costs	826	3,277
Foreign Defined Benefit Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	31	0
Interest cost	568	597
Expected return on plan assets	(647)	(668)
Amortization of actuarial loss	176	210
Net benefit costs	128	139
Other Postretirement Benefit Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	158	75
Interest cost	200	112
Amortization of prior service cost	(258)	(168)
Amortization of actuarial loss	37	58
Net benefit costs	$ 137	$ 77

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Commitments and Contingent Liabilities - Additional Information (Detail) - 3 months ended Mar. 31, 2016 SEK in Thousands, $ in Thousands	USD ($) Bonds	SEK
Commitments and Contingent Liabilities [Line Items]
Outstanding standby and commercial letters of credit | $	$ 22,080
Akers AB [Member]
Commitments and Contingent Liabilities [Line Items]
Number of surety bonds issued | Bonds	2
Amount covered by guarantees	$ 4,200	SEK 33,900

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Derivative Instruments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($) Customer	Mar. 31, 2015 USD ($)
Derivative [Line Items]
Anticipated foreign-denominated sales hedge	$ 14,458,000
Percentage of purchase commitments covering anticipated natural gas usage	44.00%
Purchase commitment amount of anticipated natural gas usage	$ 1,976,000
Number of subsidiaries purchased commitments for natural gas usage | Customer	1
Purchase commitments covering period anticipated usage, Description	Through 2017 at one of its subsidiaries
Purchase of natural gas	$ 823,000	$ 781,000
Gains (losses) on foreign exchange transactions included in other income (expense)	1,173,000	$ (380,000)
Foreign Currency Sales Contract - Fair Value Hedges [Member]
Derivative [Line Items]
Fair value of assets held as collateral related to forward exchange contracts	$ 718,000
Copper Purchases [Member]
Derivative [Line Items]
Percentage of anticipated purchases hedged	43.00%
Time period for hedged purchases	9 months
Copper Purchases [Member] | Cash Flow Hedges [Member]
Derivative [Line Items]
Anticipated purchases, hedged	$ 2,486,000
Aluminum Purchases [Member]
Derivative [Line Items]
Percentage of anticipated purchases hedged	56.00%
Time period for hedged purchases	6 months
Aluminum Purchases [Member] | Cash Flow Hedges [Member]
Derivative [Line Items]
Anticipated purchases, hedged	$ 386,000

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Derivative Instruments - Location and Fair Value of Foreign Currency Sales Contracts Recorded on Condensed Consolidated Balance Sheets (Detail) - Foreign Currency Sales Contracts [Member] - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts Receivables [Member]
Derivative [Line Items]
Fair value hedged item	$ 134	$ 27
Other Current Assets [Member]
Derivative [Line Items]
Cash flow hedge contracts	0	10
Fair value hedge contracts	1	113
Fair value hedged item	404	255
Other Noncurrent Assets [Member]
Derivative [Line Items]
Fair value hedge contracts	0	0
Fair value hedged item	54	39
Other Current Liabilities [Member]
Derivative [Line Items]
Fair value hedge contracts	564	258
Fair value hedged item	3	116
Other Noncurrent Liabilities [Member]
Derivative [Line Items]
Fair value hedge contracts	60	49
Fair value hedged item	$ 0	$ 0

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Derivative Instruments - Summary of Amount Recognized as and Reclassified from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative [Line Items]
Comprehensive Income (Loss) Beginning of the Year	$ 45	$ 85
Plus Recognized as Comprehensive Income (Loss)	18	(85)
Less Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss	(135)	(115)
Comprehensive Income (Loss) End of the Year	198	115
Foreign Currency Sales Contracts [Member]
Derivative [Line Items]
Comprehensive Income (Loss) Beginning of the Year	4	0
Plus Recognized as Comprehensive Income (Loss)	3	(2)
Less Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss	7	0
Comprehensive Income (Loss) End of the Year	0	(2)
Foreign Currency Purchase Contracts [Member]
Derivative [Line Items]
Comprehensive Income (Loss) Beginning of the Year	241	258
Plus Recognized as Comprehensive Income (Loss)	0	0
Less Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss	4	5
Comprehensive Income (Loss) End of the Year	237	253
Futures Contracts - Copper and Aluminum [Member]
Derivative [Line Items]
Comprehensive Income (Loss) Beginning of the Year	(200)	(173)
Plus Recognized as Comprehensive Income (Loss)	15	(83)
Less Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss	(146)	(120)
Comprehensive Income (Loss) End of the Year	$ (39)	$ (136)

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Derivative Instruments - Summary of Change in Fair Value Reclassified or Expected to be Reclassified from Accumulated Other Comprehensive Loss to Earnings (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Derivative [Line Items]
Amount released to pre - tax earnings	$ (2,890)	$ 72
Foreign Currency Sales Contracts [Member] | Cash Flow Hedges [Member]
Derivative [Line Items]
Amount released to pre - tax earnings	0
Amount released to pre - tax earnings	10	0
Foreign Currency Purchase Contracts [Member]
Derivative [Line Items]
Amount released to pre - tax earnings	27
Amount released to pre - tax earnings	7	7
Futures Contracts - Copper and Aluminum [Member]
Derivative [Line Items]
Amount released to pre - tax earnings	(63)
Amount released to pre - tax earnings	$ (236)	$ (194)

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Accumulated Other Comprehensive Loss - Net Change and Ending Balances for Various Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	$ (57,599)	$ (68,753)
Net Change	1,390	3,620
Ending balance	(56,209)	(65,133)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(8,393)	(4,426)
Net Change	315	(3,741)
Ending balance	(8,708)	(8,167)
Unrecognized Employee Benefit Costs [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	(49,943)	(65,396)
Net Change	1,434	7,327
Ending balance	(48,509)	(58,069)
Unrealized Holding Gains on Marketable Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	692	984
Net Change	118	4
Ending balance	810	988
Realized (Gains) Losses from Settlement of Cash Flow Hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	45	85
Net Change	153	30
Ending balance	$ 198	$ 115

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Accumulated Other Comprehensive Loss - Line Items Affected on Condensed Consolidated Statements of Operations for Components Reclassified from Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Costs of products sold (excluding depreciation)	$ 51,105	$ 52,044
Selling and administrative	13,508	9,396
Other income (expense)	(1,164)	366
Income tax provision	(850)	40
Net of tax	2,890	(72)
Net sales (foreign currency sales contracts)	63,578	65,087
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Amortization of Unrecognized Employee Benefit Costs [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Costs of products sold (excluding depreciation)	725	1,281
Selling and administrative	323	1,595
Other income (expense)	140	42
Total before income tax	1,188	2,918
Income tax provision	(403)	(1,044)
Net of tax	785	1,874
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Realized (Gains) from Sale of Marketable Securities [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Selling and administrative	46	0
Income tax provision	16	0
Net of tax	(30)	0
Net sales (foreign currency sales contracts)	(10)	0
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Realized (Gains) Losses from Settlement of Cash Flow Hedges [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Total before income tax	219	187
Income tax provision	(84)	(72)
Net of tax	135	115
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Realized (Gains) Losses from Settlement of Cash Flow Hedges [Member] | Foreign Currency Purchase Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Depreciation (foreign currency purchase contracts)	(7)	(7)
Reclassification Out of Accumulated Other Comprehensive Income (Loss) [Member] | Realized (Gains) Losses from Settlement of Cash Flow Hedges [Member] | Futures Contracts - Copper and Aluminum [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Costs of products sold (excluding depreciation)	$ 236	$ 194

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Accumulated Other Comprehensive Loss - Summary of Income Tax Expense (Benefit) Associated with Various Components of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Tax expense (benefit) associated with changes in:
Unrealized employee benefit costs	$ (398)	$ (2,429)
Unrealized holding gains on marketable securities	(77)	(2)
Fair value of cash flow hedges	(9)	50
Tax expense (benefit) associated with reclassification adjustments:
Amortization of unrecognized employee benefit costs	(403)	(1,044)
Realized gains from sale of marketable securities	16	0
Realized losses from settlement of cash flow hedges	$ (84)	$ (72)

XML

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended
	May. 05, 2016	Mar. 31, 2016	Mar. 31, 2015	May. 31, 2016	May. 31, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 329	$ 225
Income tax benefit from stock-based compensation expense		$ 115	$ 79
Predecessor Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under Omnibus Incentive Plan					1,000,000
Predecessor Plans [Member] | Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted under Omnibus Incentive Plan				0
Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity based awards grant date fair value		$ 200
Fair market value of fully vested shares as of the grant date		$ 25
Incentive Plan [Member] | Scenario, Forecast [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under Omnibus Incentive Plan				1,100,000
Incentive Plan [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of common stock issued to non-employee directors	32,090

XML

Fair Value - Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Foreign Currency Exchange Contracts [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	$ 54	$ 39
Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	405	378
Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	567	374
Foreign Currency Exchange Contracts [Member] | Other Noncurrent Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	60	49
Investments [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	3,829	3,663
Quoted Prices in Active Markets for Identical Inputs (Level 1) [Member] | Foreign Currency Exchange Contracts [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Quoted Prices in Active Markets for Identical Inputs (Level 1) [Member] | Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Quoted Prices in Active Markets for Identical Inputs (Level 1) [Member] | Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Quoted Prices in Active Markets for Identical Inputs (Level 1) [Member] | Foreign Currency Exchange Contracts [Member] | Other Noncurrent Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Quoted Prices in Active Markets for Identical Inputs (Level 1) [Member] | Investments [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	3,829	3,663
Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Exchange Contracts [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	54	39
Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	405	378
Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	567	374
Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Exchange Contracts [Member] | Other Noncurrent Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	60	49
Significant Other Observable Inputs (Level 2) [Member] | Investments [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Foreign Currency Exchange Contracts [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Foreign Currency Exchange Contracts [Member] | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Foreign Currency Exchange Contracts [Member] | Other Current Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Foreign Currency Exchange Contracts [Member] | Other Noncurrent Liabilities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	0	0
Significant Unobservable Inputs (Level 3) [Member] | Investments [Member] | Other Noncurrent Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets, fair value	$ 0	$ 0

XML

Business Segments - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 Segment
Segment Reporting [Abstract]
Number of reportable business segments	2

XML

Business Segments - Business Segment Net Sales and (Loss) Income before Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue from External Customer [Line Items]
Net sales	$ 63,578	$ 65,087
Income Before Income Tax	(3,996)	122
Operating Segments [Member]
Revenue from External Customer [Line Items]
Net sales	63,578	65,087
Income Before Income Tax	164	3,700
Operating Segments [Member] | Forged and Cast Engineered Products [Member]
Revenue from External Customer [Line Items]
Net sales	41,527	42,773
Income Before Income Tax	(2,470)	1,627
Operating Segments [Member] | Air and Liquid Processing [Member]
Revenue from External Customer [Line Items]
Net sales	22,051	22,314
Income Before Income Tax	2,634	2,073
Other Expense, Including Corporate Costs [Member]
Revenue from External Customer [Line Items]
Income Before Income Tax	$ (4,160)	$ (3,578)

XML

Litigation - Schedule of Loss Contingencies by Contingency (Detail) - Asbestos Claims [Member]	3 Months Ended
	Mar. 31, 2016 USD ($) Claim	Mar. 31, 2015 USD ($) Claim
Loss Contingencies [Line Items]
Total claims pending at the beginning of the period	6,212	8,457
New claims served	397	372
Claims dismissed	(90)	(311)
Claims settled	(80)	(120)
Total claims pending at the end of the period	6,439	8,398
Gross settlement and defense costs | $	$ 4,027,000	$ 5,083,000
Avg. gross settlement and defense costs per claim resolved | $	$ 23,690	$ 11,790

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Litigation - Schedule of Loss Contingencies by Contingency (Parenthetical) (Detail) - Claim	Mar. 31, 2016	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Number of claims inactive or transferred to MDL panel	427	1,645

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Litigation - Additional Information (Detail) $ in Thousands		3 Months Ended	12 Months Ended
	Feb. 24, 2011 Defendant Company	Mar. 31, 2016 USD ($)	Dec. 31, 2014 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Number of domestic insurance companies, lawsuit filed against | Company	13
Number of defendant insurers in the coverage action | Defendant	2
Number of domestic defendant insurers in action | Defendant	8
Number of domestic insurance companies, remain in litigation | Company	2
Reserves for total costs for asbestos liability claims pending or projected			$ 189,048
Percentage attributable to settlement costs for unasserted claims projected to be filed			64.00%
Reserve		$ 165,822
Insurance recoveries receivable		$ 122,748	$ 140,651

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Litigation - Summary of Activity in Asbestos Insurance Recoveries (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Loss Contingencies [Line Items]
Insurance receivable - asbestos, beginning of the year		$ 140,651
Insurance receivable - asbestos, end of the period	$ 122,748
Asbestos Claims [Member]
Loss Contingencies [Line Items]
Insurance receivable - asbestos, beginning of the year	125,423	140,651
Settlement and defense costs paid by insurance carriers	(2,675)	(3,844)
Insurance receivable - asbestos, end of the period	$ 122,748	$ 136,807

XML

Environmental Matters - Additional Information (Detail) $ in Thousands	Mar. 31, 2016 USD ($)
Environmental Remediation Obligations [Abstract]
Potential liability for all environmental proceedings	$ 300

XML

Subsequent Event - Additional Information (Detail)	Jun. 01, 2016
Subsequent Event [Member]
Employer non-elective contributions, percentage of employee compensation	3.00%