þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES |
Ohio | 34-1867219 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
6065 Parkland Boulevard, Cleveland, Ohio | 44124 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered | |
Common Stock, Par Value $1.00 Per Share | The NASDAQ Stock Market LLC |
Large accelerated filer | ¨ | Accelerated filer | þ | |
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Item No. | Page | |
1. | ||
1A. | ||
1B. | ||
2. | ||
3. | ||
4. | ||
5. | ||
6. | ||
7. | ||
7A. | ||
8. | ||
9. | ||
9A. | ||
9B. | ||
10. | ||
11. | ||
12 | ||
13. | ||
14. | ||
15. | ||
Supply Technologies | Assembly Components | Engineered Products | |||
NET SALES FOR 2016 | $502 million | $529 million | $245 million | ||
SELECTED PRODUCTS | Sourcing, planning and procurement of over 190,000 production components, including: • Fasteners • Pins • Valves • Hoses • Wire harnesses • Clamps and fittings • Rubber and plastic components | • Control arms • Knuckles • Injection molded rubber products • Turbo charging hose • Turbo coolant hose • Rubber and thermoplastic hose • Oil pans • Flywheel spacers • Fuel filler assemblies • Gasoline direct injection systems | • Induction heating and melting systems • Pipe threading systems • Industrial oven systems • Forging presses • Forged steel and machined products | ||
SELECTED INDUSTRIES SERVED | • Heavy-duty truck • Power sports and recreational equipment • Aerospace and defense • Electrical distribution and controls • Consumer electronics • Bus and coaches • Automotive • Agricultural and construction equipment • HVAC • Lawn and garden • Semiconductor equipment • Plumbing • Medical | • Automotive • Agricultural equipment • Construction equipment • Heavy-duty truck • Marine equipment | • Ferrous and non-ferrous metals • Coatings • Forging • Foundry • Heavy-duty truck • Construction equipment • Automotive • Oil and gas • Rail • Aerospace and defense |
Name | Age | Position | |||
Edward F. Crawford | 77 | Chairman of the Board, Chief Executive Officer and Director | |||
Matthew V. Crawford | 47 | President and Chief Operating Officer and Director | |||
Patrick W. Fogarty | 55 | Vice President and Chief Financial Officer | |||
Robert D. Vilsack | 56 | Secretary and General Counsel |
• | the loss of any key customer, in whole or in part; |
• | the insolvency or bankruptcy of any key customer; |
• | a declining market in which customers reduce orders or demand reduced prices; or |
• | a strike or work stoppage at a key customer facility, which could affect both their suppliers and customers. |
• | fluctuations in currency exchange rates; |
• | limitations on ownership and on repatriation of earnings; |
• | transportation delays and interruptions; |
• | political, social and economic instability and disruptions; |
• | potential disruption that could be caused by the partial or complete reconfiguration of the European Union; |
• | government embargoes or foreign trade restrictions; |
• | the imposition of duties and tariffs and other trade barriers; |
• | import and export controls; |
• | labor unrest and current and changing regulatory environments; |
• | the potential for nationalization of enterprises; |
• | disadvantages of competing against companies from countries that are not subject to U.S. laws and regulations, including the U.S. Foreign Corrupt Practices Act (“FCPA”); |
• | difficulties in staffing and managing multinational operations; |
• | limitations on our ability to enforce legal rights and remedies; and |
• | potentially adverse tax consequences. |
Related Industry Segment | Location | Owned or Leased | Approximate Square Footage | Use | ||||
SUPPLY | Brampton, Ontario, Canada | Leased | 145,000 | Manufacturing | ||||
TECHNOLOGIES (1) | Lawrence, PA | Leased | 116,000 | Logistics and Manufacturing | ||||
Minneapolis, MN | Leased | 87,100 | Logistics | |||||
Cleveland, OH (2) | Leased | 60,450 | Supply Technologies Corporate Office | |||||
Dayton, OH | Leased | 56,000 | Logistics | |||||
Carol Stream, IL | Leased | 51,000 | Logistics | |||||
Memphis, TN | Leased | 48,750 | Logistics | |||||
Solon, OH | Leased | 47,100 | Logistics | |||||
Streetsboro, OH | Leased | 45,000 | Manufacturing | |||||
Allentown, PA | Leased | 43,800 | Logistics | |||||
Suwanee, GA | Leased | 42,500 | Logistics | |||||
Dublin, VA | Leased | 40,000 | Logistics | |||||
Tulsa, OK | Leased | 40,000 | Logistics | |||||
ASSEMBLY | Ocala, FL | Owned | 433,000 | Manufacturing | ||||
COMPONENTS | Conneaut, OH (4) | Leased/Owned | 283,800 | Manufacturing | ||||
Lexington, TN | Owned | 240,000 | Manufacturing | |||||
Lobelville, TN (5) | Owned | 208,700 | Manufacturing | |||||
Rootstown, OH | Owned | 208,000 | Manufacturing | |||||
Cleveland, OH (3) | Leased/Owned | 190,000 | Manufacturing | |||||
Wapakoneta, OH | Owned | 188,000 | Manufacturing | |||||
Angola, IN | Owned | 135,000 | Manufacturing | |||||
Huntington, IN | Leased | 124,500 | Manufacturing | |||||
Fremont, IN | Owned | 112,000 | Manufacturing | |||||
Big Rapids, MI | Owned | 97,000 | Manufacturing | |||||
Delaware, OH | Owned | 45,000 | Manufacturing | |||||
ENGINEERED | Cicero, IL | Owned | 450,000 | Manufacturing | ||||
PRODUCTS (6) | Cuyahoga Heights, OH | Owned | 427,000 | Manufacturing | ||||
Pune, India | Owned | 275,000 | Manufacturing | |||||
Newport, AR | Owned | 200,000 | Manufacturing | |||||
Warren, OH | Owned | 195,000 | Manufacturing | |||||
Leini, Italy | Owned | 161,500 | Manufacturing | |||||
Madison Heights, MI | Leased | 128,000 | Manufacturing | |||||
Canton, OH | Leased | 124,000 | Manufacturing | |||||
La Roeulx, Belgium | Owned | 120,000 | Manufacturing | |||||
Brookfield, WI | Leased | 116,000 | Manufacturing | |||||
Wickliffe, OH | Owned | 110,000 | Manufacturing | |||||
Valencia, Spain | Owned | 81,000 | Manufacturing | |||||
Albertville, AL | Leased | 56,000 | Office | |||||
Chennai, India | Owned | 54,000 | Manufacturing | |||||
Leini, Italy | Leased | 53,800 | Manufacturing | |||||
Leini, Italy | Leased | 37,700 | Manufacturing | |||||
Cortland, OH | Owned | 30,000 | Office and Manufacturing |
(1) | Supply Technologies has other facilities, none of which is deemed to be a principal facility. |
(2) | Includes 20,150 square feet used by Holdings’ corporate office. |
(3) | Includes one leased property with 150,000 square feet and one owned property with 40,000 square feet. |
(4) | Includes three leased properties with square footage of 91,800, 64,000 and 45,700, respectively, and one owned property with 82,300 square feet. |
(5) | Includes five facilities, which make up the total square footage of 208,700. |
(6) | Engineered Products has other owned and leased facilities, none of which is deemed to be a principal facility. |
Quarterly Common Stock Price Ranges | ||||||||||||||||
2016 | 2015 | |||||||||||||||
Quarter | High | Low | High | Low | ||||||||||||
1st | $ | 43.47 | $ | 23.55 | $ | 62.98 | $ | 46.86 | ||||||||
2nd | $ | 42.94 | $ | 23.21 | $ | 55.31 | $ | 44.12 | ||||||||
3rd | $ | 38.79 | $ | 27.37 | $ | 51.50 | $ | 28.11 | ||||||||
4th | $ | 44.65 | $ | 30.01 | $ | 44.79 | $ | 28.11 |
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans (1) | Maximum Number of Shares That May Yet Be Purchased Under the Plans or Program (1) | |||||||||||
October 1 — October 31, 2016 | — | $ | — | — | 724,120 | ||||||||||
November 1 — November 30, 2016 | 309 | 38.45 | — | 724,120 | |||||||||||
December 1 — December 31, 2016 | 4,688 | 42.90 | — | 724,120 | |||||||||||
Total | 4,997 | (2) | $ | 42.62 | — | 724,120 |
(1) | On March 4, 2013, we announced a share repurchase program whereby we may repurchase up to 1.0 million shares of our outstanding common stock. |
(2) | Consists of an aggregate total of 4,997 shares of common stock we acquired from recipients of restricted stock awards at the time of vesting of such awards in order to settle recipient minimum withholding tax liabilities. |
Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(In millions, except per share data) | |||||||||||||||||||
Income Statement Data: | |||||||||||||||||||
Net sales | $ | 1,276.9 | $ | 1,463.8 | $ | 1,378.7 | $ | 1,203.2 | $ | 1,128.2 | |||||||||
Operating income | 69.2 | 97.9 | 97.9 | 85.6 | 80.5 | ||||||||||||||
Net income from continuing operations attributable to ParkOhio shareholders | 32.2 | 48.7 | 46.9 | 40.9 | 34.2 | ||||||||||||||
Earnings per common share attributable to ParkOhio shareholders: | |||||||||||||||||||
Basic | $ | 2.62 | $ | 3.94 | $ | 3.77 | $ | 3.40 | $ | 2.87 | |||||||||
Diluted | $ | 2.58 | $ | 3.88 | $ | 3.68 | $ | 3.31 | $ | 2.82 | |||||||||
Cash dividend per common share | $ | 0.50 | $ | 0.50 | $ | 0.375 | — | — |
Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(In millions) | |||||||||||||||||||
Other Financial Data: | |||||||||||||||||||
Net cash flows provided by operating activities | $ | 72.9 | $ | 44.7 | $ | 53.6 | $ | 60.3 | $ | 55.9 | |||||||||
Capital expenditures, net | (28.5 | ) | (36.5 | ) | (25.8 | ) | (30.1 | ) | (29.6 | ) | |||||||||
Selected Balance Sheet Data (as of period end) (1): | |||||||||||||||||||
Cash and cash equivalents | 64.3 | 62.0 | 58.0 | 55.2 | 44.4 | ||||||||||||||
Total assets(2) | 974.3 | 942.1 | 969.1 | 813.0 | 719.6 | ||||||||||||||
Long-term debt(2) | 439.0 | 445.8 | 429.3 | 373.5 | 367.2 |
2016 vs. 2015 | 2015 vs. 2014 | ||||||||||||||||||||||||
2016 | 2015 | 2014 | $ Change | % Change | $ Change | % Change | |||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||||
Net sales | $ | 1,276.9 | $ | 1,463.8 | $ | 1,378.7 | $ | (186.9 | ) | (13 | )% | $ | 85.1 | 6 | % | ||||||||||
Cost of sales | 1,073.9 | 1,228.6 | 1,144.2 | (154.7 | ) | (13 | )% | 84.4 | 7 | % | |||||||||||||||
Gross profit | 203.0 | 235.2 | 234.5 | (32.2 | ) | (14 | )% | 0.7 | — | % | |||||||||||||||
Gross profit as a percentage of net sales | 15.9 | % | 16.1 | % | 17.0 | % | |||||||||||||||||||
Selling, general and administrative expenses ("SG&A") | 129.8 | 135.1 | 136.6 | (5.3 | ) | (4 | )% | (1.5 | ) | (1 | )% | ||||||||||||||
SG&A as a percentage of net sales | 10.2 | % | 9.2 | % | 9.9 | % | |||||||||||||||||||
Asset impairment charge | 4.0 | — | — | 4.0 | * | — | * | ||||||||||||||||||
Litigation judgment costs | — | 2.2 | — | (2.2 | ) | * | 2.2 | * | |||||||||||||||||
Operating income | 69.2 | 97.9 | 97.9 | (28.7 | ) | (29 | )% | — | — | % | |||||||||||||||
Interest expense | 28.2 | 27.9 | 26.1 | 0.3 | 1 | % | 1.8 | 7 | % | ||||||||||||||||
Income before income taxes | 41.0 | 70.0 | 71.8 | (29.0 | ) | (41 | )% | (1.8 | ) | (3 | )% | ||||||||||||||
Income tax expense | 8.8 | 21.3 | 24.9 | (12.5 | ) | (59 | )% | (3.6 | ) | (14 | )% | ||||||||||||||
Net income | 32.2 | 48.7 | 46.9 | (16.5 | ) | (34 | )% | 1.8 | 4 | % | |||||||||||||||
Net income attributable to noncontrolling interest | (0.5 | ) | (0.6 | ) | (1.3 | ) | 0.1 | * | 0.7 | * | |||||||||||||||
Net income attributable to ParkOhio common shareholders: | $ | 31.7 | $ | 48.1 | $ | 45.6 | $ | (16.4 | ) | (34 | )% | $ | 2.5 | 5 | % | ||||||||||
Earnings per common share attributable to ParkOhio common shareholders: | |||||||||||||||||||||||||
Basic | $ | 2.62 | $ | 3.94 | $ | 3.77 | $ | (1.32 | ) | (34 | )% | $ | 0.17 | 5 | % | ||||||||||
Diluted | $ | 2.58 | $ | 3.88 | $ | 3.68 | $ | (1.30 | ) | (34 | )% | $ | 0.20 | 5 | % |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(Dollars in millions) | |||||||
Interest expense | $ | 28.2 | $ | 27.9 | |||
Average outstanding borrowings | $ | 462.1 | $ | 461.7 | |||
Average borrowing rate | 6.10 | % | 6.04 | % |
Year Ended December 31, | |||||||
2015 | 2014 | ||||||
(Dollars in millions) | |||||||
Interest expense | $ | 27.9 | $ | 26.1 | |||
Average outstanding borrowings | $ | 461.6 | $ | 397.1 | |||
Average borrowing rate | 6.04 | % | 6.57 | % |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(Dollars in millions) | |||||||||||
Net sales | $ | 502.1 | $ | 578.7 | $ | 559.6 | |||||
Segment operating income | $ | 40.0 | $ | 50.3 | $ | 42.5 | |||||
Segment operating income margin | 8.0 | % | 8.7 | % | 7.6 | % |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(Dollars in millions) | |||||||||||
Net sales | $ | 529.4 | $ | 569.2 | $ | 490.5 | |||||
Segment operating income | $ | 50.5 | $ | 57.9 | $ | 42.0 | |||||
Segment operating income margin | 9.5 | % | 10.2 | % | 8.6 | % |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(Dollars in millions) | |||||||||||
Net sales | $ | 245.4 | $ | 315.9 | $ | 328.6 | |||||
Segment operating income | $ | 10.6 | $ | 20.9 | $ | 42.7 | |||||
Segment operating income margin | 4.3 | % | 6.6 | % | 13.0 | % |
2016 | 2015 | 2014 | |||||||||
Cash provided (used) by: | (In millions) | ||||||||||
Operating activities | $ | 72.9 | $ | 44.7 | $ | 53.6 | |||||
Investing activities | (51.9 | ) | (36.5 | ) | (96.4 | ) | |||||
Financing activities | (17.2 | ) | 0.7 | 48.6 | |||||||
Effect of exchange rate on cash | (1.5 | ) | (4.9 | ) | (3.0 | ) | |||||
Increase in cash and cash equivalents | $ | 2.3 | $ | 4.0 | $ | 2.8 |
2016 | 2015 | ||||||
(Dollars in millions) | |||||||
Cash and cash equivalents | $ | 64.3 | $ | 62.0 | |||
Gross debt (excluding unamortized debt issuance costs) | $ | 475.0 | $ | 468.1 | |||
Working capital | $ | 310.8 | $ | 324.4 | |||
Net debt as a % of capitalization | 58 | % | 60 | % |
Payments Due or Commitment Expiration Per Period | ||||||||||||||||||||
(In millions) | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More than 5 Years | |||||||||||||||
Short-term and long-term debt obligations | $ | 456.2 | $ | 24.7 | $ | 159.2 | $ | 271.2 | $ | 1.1 | ||||||||||
Interest obligations (1) | 86.3 | 20.3 | 40.6 | 25.4 | — | |||||||||||||||
Operating lease obligations | 62.5 | 15.8 | 19.9 | 9.2 | 17.6 | |||||||||||||||
Capital lease obligations | 18.8 | 6.1 | 8.0 | 4.7 | — | |||||||||||||||
Purchase obligations (2) | 172.0 | 170.2 | 1.7 | 0.1 | — | |||||||||||||||
Postretirement obligations (3) | 9.5 | 1.3 | 2.3 | 1.9 | 4.0 | |||||||||||||||
Standby letters of credit and bank guarantees | 47.8 | 23.9 | 10.8 | 13.1 | — | |||||||||||||||
Total | $ | 853.1 | $ | 262.3 | $ | 242.5 | $ | 325.6 | $ | 22.7 |
(1) | Interest obligations are included on the Senior Notes only and assume the Senior Notes are paid at maturity. The calculation of interest on debt outstanding under our revolving credit facility and other variable rate debt ($4.4 million based on 2.81% average interest rate and outstanding borrowings of $156.2 million at December 31, 2016) is not included above due to the subjectivity and estimation required. |
(2) | Purchase obligations include contractual obligations for raw materials and services. |
(3) | Postretirement obligations include projected postretirement benefit payments to participants only through 2025. |
Change in Assumption | Impact on 2016 Benefit Expense | Impact on 2016 Projected Benefit Obligation for Pension Benefits | Impact on 2016 Projected Benefit Obligation for Postretirement Benefits | |||||||||
(Dollars in millions) | ||||||||||||
50 basis point decrease in discount rate | $ | — | $ | 2.9 | $ | 0.4 | ||||||
50 basis point increase in discount rate | $ | — | $ | (2.7 | ) | $ | (0.3 | ) | ||||
50 basis point decrease in expected return on assets | $ | 0.6 | $ | — | $ | — |
Page | |
December 31, 2016 | December 31, 2015 | ||||||
(In millions, except share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 64.3 | $ | 62.0 | |||
Accounts receivable, less allowances for doubtful accounts of $4.0 million at December 31, 2016 and $3.3 million at December 31, 2015 | 194.4 | 199.3 | |||||
Inventories, net | 240.6 | 249.0 | |||||
Other current assets | 53.4 | 39.3 | |||||
Total current assets | 552.7 | 549.6 | |||||
Property, plant and equipment, net | 167.1 | 151.3 | |||||
Goodwill | 86.6 | 82.0 | |||||
Intangible assets, net | 96.6 | 92.8 | |||||
Pension assets | 61.7 | 58.9 | |||||
Other long-term assets | 9.6 | 7.5 | |||||
Total assets | $ | 974.3 | $ | 942.1 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
Current liabilities: | |||||||
Trade accounts payable | $ | 133.6 | $ | 129.7 | |||
Current portion of long-term debt and short-term debt | 30.8 | 17.8 | |||||
Accrued employee compensation | 18.8 | 26.1 | |||||
Other accrued expenses | 58.7 | 51.6 | |||||
Total current liabilities | 241.9 | 225.2 | |||||
Long-term liabilities, less current portion: | |||||||
Debt | 439.0 | 445.8 | |||||
Deferred income taxes | 27.7 | 20.4 | |||||
Other long-term liabilities | 29.7 | 38.5 | |||||
Total long-term liabilities | 496.4 | 504.7 | |||||
Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity: | |||||||
Capital stock, par value $1 a share | |||||||
Serial preferred stock: Authorized -- 632,470 shares: Issued and outstanding -- none | — | — | |||||
Common stock: Authorized - 40,000,000 shares; Issued - 14,846,035 shares in 2016 and 14,653,985 in 2015 | 14.9 | 14.7 | |||||
Additional paid-in capital | 108.8 | 99.0 | |||||
Retained earnings | 193.6 | 168.3 | |||||
Treasury stock, at cost, 2,446,111 shares in 2016 and 2,383,903 shares in 2015 | (48.6 | ) | (46.7 | ) | |||
Accumulated other comprehensive loss | (42.7 | ) | (30.0 | ) | |||
Total Park-Ohio Holdings Corp. and Subsidiaries shareholders' equity | 226.0 | 205.3 | |||||
Noncontrolling interests | 10.0 | 6.9 | |||||
Total equity | 236.0 | 212.2 | |||||
Total liabilities and shareholders' equity | $ | 974.3 | $ | 942.1 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions, except per share data) | |||||||||||
Net sales | $ | 1,276.9 | $ | 1,463.8 | $ | 1,378.7 | |||||
Cost of sales | 1,073.9 | 1,228.6 | 1,144.2 | ||||||||
Gross profit | 203.0 | 235.2 | 234.5 | ||||||||
Selling, general and administrative expenses | 129.8 | 135.1 | 136.6 | ||||||||
Asset impairment charge | 4.0 | — | — | ||||||||
Litigation judgment costs | — | 2.2 | — | ||||||||
Operating income | 69.2 | 97.9 | 97.9 | ||||||||
Interest expense | 28.2 | 27.9 | 26.1 | ||||||||
Income before income taxes | 41.0 | 70.0 | 71.8 | ||||||||
Income tax expense | 8.8 | 21.3 | 24.9 | ||||||||
Net income | 32.2 | 48.7 | 46.9 | ||||||||
Net income attributable to noncontrolling interest | (0.5 | ) | (0.6 | ) | (1.3 | ) | |||||
Net income attributable to ParkOhio common shareholders | $ | 31.7 | $ | 48.1 | $ | 45.6 | |||||
Earnings per common share attributable to ParkOhio common shareholders: | |||||||||||
Basic | $ | 2.62 | $ | 3.94 | $ | 3.77 | |||||
Diluted | $ | 2.58 | $ | 3.88 | $ | 3.68 | |||||
Weighted-average shares used to compute earnings per share: | |||||||||||
Basic | 12.1 | 12.2 | 12.1 | ||||||||
Diluted | 12.3 | 12.4 | 12.4 | ||||||||
Cash dividend per common share | $ | 0.50 | $ | 0.50 | $ | 0.375 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Net income | $ | 32.2 | $ | 48.7 | $ | 46.9 | |||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | (13.9 | ) | (11.8 | ) | (7.9 | ) | |||||
Pension and postretirement benefit adjustments, net of tax | 1.2 | (4.2 | ) | (9.5 | ) | ||||||
Total other comprehensive (loss) income | (12.7 | ) | (16.0 | ) | (17.4 | ) | |||||
Total comprehensive income, net of tax | 19.5 | 32.7 | 29.5 | ||||||||
Comprehensive income attributable to noncontrolling interest | (0.5 | ) | (0.6 | ) | (1.3 | ) | |||||
Comprehensive income attributable to ParkOhio common shareholders | $ | 19.0 | $ | 32.1 | $ | 28.2 |
Common Stock | ||||||||||||||||||||||||||||||
Shares | Amount | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive (Loss) Income | Noncontrolling Interest | Total | |||||||||||||||||||||||
(In whole shares) | (In millions) | |||||||||||||||||||||||||||||
Balance at January 1, 2014 | 14,364,239 | $ | 14.4 | $ | 82.4 | $ | 85.6 | $ | (26.8 | ) | $ | 3.4 | $ | 5.0 | $ | 164.0 | ||||||||||||||
Other comprehensive income (loss) | — | — | — | 45.6 | — | (17.4 | ) | 1.3 | 29.5 | |||||||||||||||||||||
Share-based compensation | — | — | 5.8 | — | — | — | — | 5.8 | ||||||||||||||||||||||
Restricted stock awards | 140,250 | 0.1 | (0.1 | ) | — | — | — | — | — | |||||||||||||||||||||
Restricted stock cancelled | (4,668 | ) | — | (0.1 | ) | — | — | — | — | (0.1 | ) | |||||||||||||||||||
Performance shares issued | 14,000 | — | 0.7 | — | — | — | — | 0.7 | ||||||||||||||||||||||
Dividends | — | — | — | (4.7 | ) | — | — | — | (4.7 | ) | ||||||||||||||||||||
Purchase of treasury stock (79,733 shares) | — | — | — | — | (4.4 | ) | — | — | (4.4 | ) | ||||||||||||||||||||
Income tax effect of share-based compensation exercises and vesting | — | — | 1.1 | — | — | — | — | 1.1 | ||||||||||||||||||||||
Balance at December 31, 2014 | 14,513,821 | 14.5 | 89.8 | 126.5 | (31.2 | ) | (14.0 | ) | 6.3 | 191.9 | ||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | 48.1 | — | (16.0 | ) | 0.6 | 32.7 | |||||||||||||||||||||
Share-based compensation | — | — | 7.3 | — | — | — | — | 7.3 | ||||||||||||||||||||||
Restricted stock awards | 72,500 | 0.1 | (0.1 | ) | — | — | — | — | — | |||||||||||||||||||||
Restricted stock cancelled | (29,836 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||
Performance shares issued | 14,000 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Exercise of stock options | 83,500 | 0.1 | 1.1 | — | — | — | — | 1.2 | ||||||||||||||||||||||
Dividends | — | — | — | (6.3 | ) | — | — | — | (6.3 | ) | ||||||||||||||||||||
Purchase of treasury stock (369,211 shares) | — | — | — | — | (15.5 | ) | — | — | (15.5 | ) | ||||||||||||||||||||
Income tax effect of share-based compensation exercises and vesting | — | — | 0.9 | — | — | — | — | 0.9 | ||||||||||||||||||||||
Balance at December 31, 2015 | 14,653,985 | 14.7 | 99.0 | 168.3 | (46.7 | ) | (30.0 | ) | 6.9 | 212.2 | ||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | 31.7 | — | (12.7 | ) | 0.5 | 19.5 | |||||||||||||||||||||
Share-based compensation | — | — | 10.6 | — | — | — | — | 10.6 | ||||||||||||||||||||||
Restricted stock awards | 172,550 | 0.2 | (0.2 | ) | — | — | — | — | — | |||||||||||||||||||||
Restricted stock cancelled | (4,000 | ) | — | — | — | — | — | — | — | |||||||||||||||||||||
Performance shares issued | 1,500 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Exercise of stock options | 22,000 | — | 0.5 | — | — | — | — | 0.5 | ||||||||||||||||||||||
Dividends | — | — | (6.2 | ) | — | — | — | (6.2 | ) | |||||||||||||||||||||
Purchase of treasury stock (62,208 shares) | — | — | — | — | (1.9 | ) | — | — | (1.9 | ) | ||||||||||||||||||||
Income tax effect of share-based compensation exercises and vesting | — | — | (0.6 | ) | — | — | — | — | (0.6 | ) | ||||||||||||||||||||
Acquisition | — | — | — | — | — | — | 2.1 | 2.1 | ||||||||||||||||||||||
Other | — | — | (0.5 | ) | (0.2 | ) | — | — | 0.5 | (0.2 | ) | |||||||||||||||||||
Balance at December 31, 2016 | 14,846,035 | $ | 14.9 | $ | 108.8 | $ | 193.6 | $ | (48.6 | ) | $ | (42.7 | ) | $ | 10.0 | $ | 236.0 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
OPERATING ACTIVITIES | (In millions) | ||||||||||
Net income | $ | 32.2 | $ | 48.7 | $ | 46.9 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 29.5 | 28.7 | 23.2 | ||||||||
Asset impairment charges | 4.0 | — | — | ||||||||
Share-based compensation | 10.6 | 7.3 | 5.8 | ||||||||
Deferred income taxes | 2.8 | 2.9 | 0.5 | ||||||||
Other | — | — | (0.9 | ) | |||||||
Changes in operating assets and liabilities, excluding business acquisitions: | |||||||||||
Accounts receivable | 13.7 | 3.8 | (27.9 | ) | |||||||
Inventories | 8.6 | (15.4 | ) | (8.7 | ) | ||||||
Prepaid and other current assets | (5.5 | ) | 8.7 | (14.6 | ) | ||||||
Accounts payable and accrued expenses | (8.8 | ) | (36.9 | ) | 27.9 | ||||||
Other noncurrent liabilities | (8.1 | ) | 1.6 | (7.3 | ) | ||||||
Other | (6.1 | ) | (4.7 | ) | 8.7 | ||||||
Net cash provided by operating activities | 72.9 | 44.7 | 53.6 | ||||||||
INVESTING ACTIVITIES | |||||||||||
Purchases of property, plant and equipment | (28.5 | ) | (36.5 | ) | (25.8 | ) | |||||
Proceeds from sale of assets | — | — | 2.1 | ||||||||
Business acquisitions, net of cash acquired | (23.4 | ) | — | (72.7 | ) | ||||||
Net cash used by investing activities | (51.9 | ) | (36.5 | ) | (96.4 | ) | |||||
FINANCING ACTIVITIES | |||||||||||
(Payments) proceeds from revolving credit facility, net | (36.2 | ) | 7.9 | 50.3 | |||||||
Payments on term loans and other debt | (4.5 | ) | (3.6 | ) | (6.6 | ) | |||||
Proceeds from other long-term debt | 34.9 | 2.3 | 14.2 | ||||||||
(Payments) proceeds from capital lease facilities, net | (1.2 | ) | 13.8 | — | |||||||
Dividends | (6.2 | ) | (6.3 | ) | (4.7 | ) | |||||
Purchases of treasury stock | (1.9 | ) | (15.5 | ) | (4.4 | ) | |||||
Income tax effect of share-based compensation exercises and vesting | (0.6 | ) | 0.9 | 1.1 | |||||||
Payment of acquisition earn-out | (2.0 | ) | — | — | |||||||
Other | 0.5 | 1.2 | (1.3 | ) | |||||||
Net cash (used) provided by financing activities | (17.2 | ) | 0.7 | 48.6 | |||||||
Effect of exchange rate changes on cash | (1.5 | ) | (4.9 | ) | (3.0 | ) | |||||
Increase in cash and cash equivalents | 2.3 | 4.0 | 2.8 | ||||||||
Cash and cash equivalents at beginning of year | 62.0 | 58.0 | 55.2 | ||||||||
Cash and cash equivalents at end of year | $ | 64.3 | $ | 62.0 | $ | 58.0 | |||||
Income taxes paid | $ | 8.7 | $ | 19.0 | $ | 25.8 | |||||
Interest paid | $ | 25.9 | $ | 25.7 | $ | 24.0 |
Major Classes of Inventories | December 31, 2016 | December 31, 2015 | |||||
(In millions) | |||||||
Finished goods | $ | 131.4 | $ | 147.5 | |||
Work in process | 43.4 | 37.4 | |||||
Raw materials and supplies | 65.8 | 64.1 | |||||
Inventories, net | $ | 240.6 | $ | 249.0 | |||
Other inventory items | |||||||
Inventory reserves | $ | (30.2 | ) | $ | (29.0 | ) | |
Consigned Inventory | $ | 12.2 | $ | 10.3 |
December 31, 2016 | December 31, 2015 | ||||||
Property, plant and equipment: | |||||||
Land and land improvements | $ | 11.3 | $ | 8.5 | |||
Buildings | 74.9 | 65.3 | |||||
Machinery and equipment | 316.1 | 304.6 | |||||
Leased property under capital leases | 20.4 | 16.2 | |||||
Total property, plant and equipment | 422.7 | 394.6 | |||||
Less accumulated depreciation | 255.6 | 243.3 | |||||
Property, plant and equipment, net | $ | 167.1 | $ | 151.3 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Depreciation expense | $ | 23.4 | $ | 22.3 | $ | 18.4 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Balance at January 1, | $ | 6.1 | $ | 6.9 | $ | 5.4 | |||||
Claims paid during the year | (3.7 | ) | (4.7 | ) | (2.9 | ) | |||||
Warranty expense | 2.0 | 4.0 | 4.0 | ||||||||
Acquired warranty liabilities | 2.8 | — | — | ||||||||
Other | (0.1 | ) | (0.1 | ) | 0.4 | ||||||
Balance at December 31, | $ | 7.1 | $ | 6.1 | $ | 6.9 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
(In whole shares) | ||||||||
Weighted average basic shares outstanding | 12,126,264 | 12,215,425 | 12,097,018 | |||||
Plus dilutive impact of employee stock awards | 148,188 | 167,526 | 279,058 | |||||
Weighted average diluted shares outstanding | 12,274,452 | 12,382,951 | 12,376,076 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Net sales: | |||||||||||
Supply Technologies | $ | 502.1 | $ | 578.7 | $ | 559.6 | |||||
Assembly Components | 529.4 | 569.2 | 490.5 | ||||||||
Engineered Products | 245.4 | 315.9 | 328.6 | ||||||||
$ | 1,276.9 | $ | 1,463.8 | $ | 1,378.7 | ||||||
Segment operating income: | |||||||||||
Supply Technologies | $ | 40.0 | $ | 50.3 | $ | 42.5 | |||||
Assembly Components | 50.5 | 57.9 | 42.0 | ||||||||
Engineered Products | 10.6 | 20.9 | 42.7 | ||||||||
Total segment operating income | 101.1 | 129.1 | 127.2 | ||||||||
Corporate costs | (27.9 | ) | (29.0 | ) | (29.3 | ) | |||||
Asset impairment charge | (4.0 | ) | — | — | |||||||
Litigation judgment costs | — | (2.2 | ) | — | |||||||
Interest expense | (28.2 | ) | (27.9 | ) | (26.1 | ) | |||||
Income before income taxes | $ | 41.0 | $ | 70.0 | $ | 71.8 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Capital expenditures: | |||||||||||
Supply Technologies | $ | 6.1 | $ | 3.7 | $ | 5.8 | |||||
Assembly Components | 16.9 | 27.3 | 14.0 | ||||||||
Engineered Products | 5.5 | 5.5 | 2.4 | ||||||||
Corporate | — | — | 1.5 | ||||||||
$ | 28.5 | $ | 36.5 | $ | 23.7 | ||||||
Depreciation and amortization expense: | |||||||||||
Supply Technologies | $ | 4.7 | $ | 4.7 | $ | 4.5 | |||||
Assembly Components | 20.1 | 18.6 | 14.2 | ||||||||
Engineered Products | 4.1 | 4.2 | 3.3 | ||||||||
Corporate | 0.6 | 1.2 | 1.2 | ||||||||
$ | 29.5 | $ | 28.7 | $ | 23.2 | ||||||
Identifiable assets: | |||||||||||
Supply Technologies | $ | 262.0 | $ | 276.3 | $ | 277.6 | |||||
Assembly Components | 332.9 | 344.8 | 340.5 | ||||||||
Engineered Products | 304.9 | 243.1 | 246.9 | ||||||||
Corporate | 74.5 | 77.9 | 104.1 | ||||||||
$ | 974.3 | $ | 942.1 | $ | 969.1 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Supply Technologies: | ||||||||
Supply Technologies | 85 | % | 87 | % | 88 | % | ||
Engineered specialty products | 15 | % | 13 | % | 12 | % | ||
100 | % | 100 | % | 100 | % | |||
Assembly Components: | ||||||||
Fuel, rubber and plastic products | 67 | % | 59 | % | 57 | % | ||
Aluminum products | 33 | % | 41 | % | 43 | % | ||
100 | % | 100 | % | 100 | % | |||
Engineered Products: | ||||||||
Industrial equipment business | 79 | % | 81 | % | 78 | % | ||
Forged and machined products | 21 | % | 19 | % | 22 | % | ||
100 | % | 100 | % | 100 | % |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
United States | 71 | % | 72 | % | 74 | % | ||
Asia | 8 | % | 8 | % | 6 | % | ||
Europe | 8 | % | 7 | % | 6 | % | ||
Canada | 6 | % | 6 | % | 7 | % | ||
Mexico | 6 | % | 6 | % | 5 | % | ||
Other | 1 | % | 1 | % | 2 | % | ||
100 | % | 100 | % | 100 | % |
(In millions) | |||
Net assets acquired | $ | 24.7 | |
Goodwill | 6.1 | ||
Total consideration | 30.8 | ||
Less: | |||
Cash acquired | (6.3 | ) | |
Contingent consideration | (1.1 | ) | |
Cash paid for acquisition, net of cash acquired | $ | 23.4 |
Supply Technologies | Assembly Components | Engineered Products | Total | ||||||||||||
(In millions) | |||||||||||||||
Balance at January 1, 2014 | $ | 6.4 | $ | 49.0 | $ | 5.0 | $ | 60.4 | |||||||
Acquisitions | 0.7 | 5.0 | 23.2 | 28.9 | |||||||||||
Foreign currency translation | 0.5 | — | (0.3 | ) | 0.2 | ||||||||||
Balance at December 31, 2014 | 7.6 | 54.0 | 27.9 | 89.5 | |||||||||||
Acquisition adjustments | — | 0.1 | (6.3 | ) | (6.2 | ) | |||||||||
Foreign currency translation | (0.4 | ) | — | (0.9 | ) | (1.3 | ) | ||||||||
Balance at December 31, 2015 | 7.2 | 54.1 | 20.7 | 82.0 | |||||||||||
GH acquisition | — | — | 6.1 | 6.1 | |||||||||||
Foreign currency translation | (1.1 | ) | — | (0.4 | ) | (1.5 | ) | ||||||||
Balance at December 31, 2016 | $ | 6.1 | $ | 54.1 | $ | 26.4 | $ | 86.6 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||||
Weighted Average Useful Life (Years) | Gross Value | Accumulated Amortization | Net Value | Gross Value | Accumulated Amortization | Net Value | |||||||||||||||||||
(In millions) | |||||||||||||||||||||||||
Customer relationships | 11.1 | $ | 75.5 | $ | 23.7 | $ | 51.8 | $ | 76.0 | $ | 18.5 | $ | 57.5 | ||||||||||||
Indefinite-lived tradenames | * | 22.4 | * | 22.4 | 18.7 | * | 18.7 | ||||||||||||||||||
Technology | 18.6 | 23.0 | 1.8 | 21.2 | 15.9 | 0.9 | 15.0 | ||||||||||||||||||
Other | 8.2 | 4.0 | 2.8 | 1.2 | 4.1 | 2.5 | 1.6 | ||||||||||||||||||
Total | $ | 124.9 | $ | 28.3 | $ | 96.6 | $ | 114.7 | $ | 21.9 | $ | 92.8 | |||||||||||||
* Not applicable. Tradenames have an indefinite life. |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Amortization expense | $ | 6.1 | $ | 6.4 | $ | 4.8 |
(In millions) | |||
2017 | $ | 6.6 | |
2018 | $ | 6.4 | |
2019 | $ | 6.0 | |
2020 | $ | 5.8 | |
2021 | $ | 5.8 |
Carrying Value at | ||||||||||||
Maturity Date | Interest Rate at December 31, 2016 | December 31, 2016 | December 31, 2015 | |||||||||
(In millions) | ||||||||||||
Senior Notes | April 1, 2021 | 8.125 | % | $ | 250.0 | $ | 250.0 | |||||
Revolving credit facility | July 31, 2019 | 2.80 | % | 132.8 | 169.0 | |||||||
Term loan | July 31, 2019 | 2.88 | % | 23.4 | 27.9 | |||||||
Industrial Equipment Group European Facilities | December 21, 2021 | 3.25 | % | 26.4 | — | |||||||
Capital leases | Various | Various | 18.8 | 17.7 | ||||||||
Other | Various | Various | 23.6 | 3.5 | ||||||||
Gross debt | 475.0 | 468.1 | ||||||||||
Less current portion of long-term debt | (25.8 | ) | (17.8 | ) | ||||||||
Less short-term debt | (5.0 | ) | — | |||||||||
Less unamortized debt issuance costs(1) | (5.2 | ) | (4.5 | ) | ||||||||
Total long-term debt, net | $ | 439.0 | $ | 445.8 |
• | increase the revolving credit facility to $300.0 million; |
• | increases the inventory advance rate from 50% to 60%, reducing back to 50% on a pro-rata quarterly basis over 36 months commencing July 1, 2016; |
• | reload the term loan up to $35.0 million, of which $23.4 million has been borrowed and is outstanding as of December 31, 2016; |
• | increases the Canadian sub-limit up to $35.0 million; |
• | increases the European sub-limit up to $25.0 million; and |
• | provide minor pricing adjustments including pricing the first $35.0 million drawn on the revolver at LIBOR + 3.50%, reducing automatically on a pro-rata quarterly basis over 36 months commencing July 1, 2016. |
December 31, 2016 | December 31, 2015 | ||||||
(In millions) | |||||||
Carrying amount | $ | 250.0 | $ | 250.0 | |||
Fair value | $ | 257.5 | $ | 263.4 |
(In millions) | |||
2017 | $ | 24.7 | |
2018 | $ | 20.8 | |
2019 | $ | 138.4 | |
2020 | $ | 8.1 | |
2021 | $ | 263.1 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
United States | $ | 15.4 | $ | 44.0 | $ | 53.1 | |||||
Outside the United States | 25.6 | 26.0 | 18.7 | ||||||||
$ | 41.0 | $ | 70.0 | $ | 71.8 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Current expense (benefit): | |||||||||||
Federal | $ | (0.8 | ) | $ | 11.7 | $ | 17.4 | ||||
State | 0.2 | 0.7 | 0.8 | ||||||||
Foreign | 6.6 | 6.0 | 6.2 | ||||||||
6.0 | 18.4 | 24.4 | |||||||||
Deferred expense (benefit): | |||||||||||
Federal | 1.6 | 2.7 | 1.0 | ||||||||
State | 0.5 | 0.6 | (0.8 | ) | |||||||
Foreign | 0.7 | (0.4 | ) | 0.3 | |||||||
2.8 | 2.9 | 0.5 | |||||||||
Income tax expense | $ | 8.8 | $ | 21.3 | $ | 24.9 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Tax at U.S. statutory rate | $ | 14.3 | $ | 24.5 | $ | 25.1 | |||||
Effect of state income taxes, net | 0.2 | 0.6 | 1.4 | ||||||||
Effect of foreign operations | (2.1 | ) | (1.6 | ) | (0.9 | ) | |||||
Valuation allowance | 0.5 | (0.7 | ) | (1.1 | ) | ||||||
Uncertain tax positions | (4.0 | ) | 0.1 | 0.3 | |||||||
Non-deductible items | 0.6 | 0.5 | 1.0 | ||||||||
Non-deductible compensation | 0.8 | 1.2 | 0.8 | ||||||||
Manufacturer's deduction | (0.5 | ) | (1.1 | ) | (1.4 | ) | |||||
Other, net | (1.0 | ) | (2.2 | ) | (0.3 | ) | |||||
Total | $ | 8.8 | $ | 21.3 | $ | 24.9 |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
(In millions) | |||||||
Deferred income tax assets: | |||||||
Postretirement benefit obligation | $ | 3.6 | $ | 4.8 | |||
Inventory | 13.7 | 12.0 | |||||
Net operating loss and credit carryforwards | 10.8 | 6.1 | |||||
Warranty reserve | 2.1 | 1.9 | |||||
Accrued litigation | 2.8 | 2.9 | |||||
Compensation | 4.1 | 6.0 | |||||
Other | 10.0 | 11.0 | |||||
Total deferred income tax assets | 47.1 | 44.7 | |||||
Deferred income tax liabilities: | |||||||
Depreciation and amortization | 14.9 | 15.2 | |||||
Pension | 22.1 | 21.0 | |||||
Intangible assets | 23.3 | 18.8 | |||||
Other | 5.2 | 2.1 | |||||
Total deferred income tax liabilities | 65.5 | 57.1 | |||||
Net deferred income tax liabilities prior to valuation allowances | (18.4 | ) | (12.4 | ) | |||
Valuation allowances | (5.3 | ) | (4.8 | ) | |||
Net deferred income tax liability | $ | (23.7 | ) | $ | (17.2 | ) |
2016 | 2015 | 2014 | |||||||||
(In millions) | |||||||||||
Unrecognized Tax Benefit — January 1, | $ | 6.3 | $ | 6.5 | $ | 5.9 | |||||
Gross Increases to Tax Positions Related to Prior Years | 0.3 | 0.3 | 0.8 | ||||||||
Gross Decreases to Tax Positions Related to Prior Years | — | (0.1 | ) | (0.2 | ) | ||||||
Expiration of Statute of Limitations | (3.7 | ) | (0.4 | ) | — | ||||||
Unrecognized Tax Benefit — December 31, | $ | 2.9 | $ | 6.3 | $ | 6.5 |
2016 | ||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |||||||||
(in whole shares) | (in millions) | |||||||||||
Outstanding — beginning of year | 60,000 | $ | 19.41 | |||||||||
Granted | — | — | ||||||||||
Exercised | (22,000 | ) | 19.60 | |||||||||
Canceled or expired | — | — | ||||||||||
Outstanding — end of year | 38,000 | $ | 19.30 | 1.1 | $ | 0.9 | ||||||
Options exercisable | 38,000 | $ | 19.30 | 1.1 | $ | 0.9 |
2016 | |||||||||||||
Time-Based | Performance-Based | ||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
(in whole shares) | (in whole shares) | ||||||||||||
Outstanding — beginning of year | 208,429 | $ | 36.61 | 120,000 | $ | 48.72 | |||||||
Granted(a) | 58,570 | 30.72 | 165,000 | 34.78 | |||||||||
Vested | (126,083 | ) | 41.00 | (40,000 | ) | 48.72 | |||||||
Performance- to time-based(b) | 80,000 | 48.72 | (80,000 | ) | 48.72 | ||||||||
Canceled or expired | (4,000 | ) | 36.34 | — | — | ||||||||
Outstanding — end of year | 216,916 | $ | 36.94 | 165,000 | $ | 34.78 |
(In millions) | |||||||
Capital Leases | Operating leases | ||||||
2017 | $ | 6.6 | $ | 15.8 | |||
2018 | 4.3 | 11.9 | |||||
2019 | 4.3 | 8.0 | |||||
2020 | 3.9 | 5.4 | |||||
2021 | 0.7 | 3.8 | |||||
Thereafter | — | 17.6 | |||||
Total minimum lease payments | 19.8 | $ | 62.5 | ||||
Amounts representing interest | (1.0 | ) | |||||
Present value of minimum lease payments | 18.8 | ||||||
Current maturities | (6.1 | ) | |||||
Long-term capital lease obligation | $ | 12.7 |
December 31, 2016 | December 31, 2015 | ||||||
Machinery and equipment | $ | 20.4 | $ | 16.2 | |||
Less accumulated depreciation | 2.3 | 0.5 | |||||
$ | 18.1 | $ | 15.7 |
Pension Benefits | Postretirement Benefits | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions) | |||||||||||||||
Change in benefit obligation | |||||||||||||||
Benefit obligation at beginning of year | $ | 58.4 | $ | 61.1 | $ | 13.5 | $ | 17.0 | |||||||
Service cost | 2.4 | 2.6 | — | — | |||||||||||
Interest cost | 1.8 | 2.3 | 0.3 | 0.5 | |||||||||||
Actuarial losses (gains) | 0.5 | (3.0 | ) | (2.6 | ) | (2.7 | ) | ||||||||
Benefits and expenses paid, net of contributions | (4.6 | ) | (4.6 | ) | (1.2 | ) | (1.3 | ) | |||||||
Benefit obligation at end of year | $ | 58.5 | $ | 58.4 | $ | 10.0 | $ | 13.5 | |||||||
Change in plan assets | |||||||||||||||
Fair value of plan assets at beginning of year | $ | 117.3 | $ | 125.7 | $ | — | $ | — | |||||||
Actual return on plan assets | 8.3 | (2.9 | ) | — | — | ||||||||||
Company contributions | — | — | 1.2 | 1.3 | |||||||||||
Cash transfer to fund postretirement benefit payments | (0.8 | ) | (0.9 | ) | — | — | |||||||||
Benefits and expenses paid, net of contributions | (4.6 | ) | (4.6 | ) | (1.2 | ) | (1.3 | ) | |||||||
Fair value of plan assets at end of year | $ | 120.2 | $ | 117.3 | $ | — | $ | — | |||||||
Funded (underfunded) status of the plans | $ | 61.7 | $ | 58.9 | $ | (10.0 | ) | $ | (13.5 | ) |
Pension Benefits | Postretirement Benefits | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(In millions) | |||||||||||||||
Pension assets | $ | 61.7 | $ | 58.9 | $ | — | $ | — | |||||||
Other current liabilities | — | — | 1.2 | 1.4 | |||||||||||
Other long-term liabilities | — | — | 8.8 | 12.1 | |||||||||||
$ | 61.7 | $ | 58.9 | $ | 10.0 | $ | 13.5 | ||||||||
Amounts recognized in Accumulated other comprehensive loss | |||||||||||||||
Net actuarial loss | $ | 25.8 | $ | 25.2 | $ | 1.7 | $ | 4.4 | |||||||
Net prior service cost (credit) | 0.3 | 0.3 | (0.2 | ) | (0.3 | ) | |||||||||
Accumulated other comprehensive loss | $ | 26.1 | $ | 25.5 | $ | 1.5 | $ | 4.1 |
Plan Assets | |||||||
Target 2017 | 2016 | 2015 | |||||
Asset Category | |||||||
Equity securities | 45-75% | 61.9 | % | 62.7 | % | ||
Debt securities | 20-40% | 24.6 | % | 25.4 | % | ||
Other | 0-20% | 13.5 | % | 11.9 | % | ||
100% | 100 | % | 100 | % |
2016 | 2015 | ||||||||||||||
Level 1 | Total (at Fair Value) | Level 1 | Total (at Fair Value) | ||||||||||||
(In millions) | |||||||||||||||
Common stock | $ | 40.0 | $ | 40.0 | $ | 38.3 | $ | 38.3 | |||||||
Equity Funds | 29.0 | 29.0 | 29.1 | 29.1 | |||||||||||
Foreign Stock | 5.4 | 5.4 | 5.7 | 5.7 | |||||||||||
U.S. Government obligations | 8.1 | 8.1 | 7.4 | 7.4 | |||||||||||
Fixed income funds | 14.1 | 14.1 | 14.6 | 14.6 | |||||||||||
Corporate Bonds | 6.3 | 6.3 | 6.8 | 6.8 | |||||||||||
Cash and Cash Equivalents | 3.3 | 3.3 | 1.2 | 1.2 | |||||||||||
Total | $ | 106.2 | $ | 103.1 | |||||||||||
Investments measured at net asset value: | |||||||||||||||
Common collective trust | 1.1 | 1.5 | |||||||||||||
Hedge funds | 12.9 | 12.7 | |||||||||||||
Total assets at fair value | $ | 120.2 | $ | 117.3 |
Weighted-Average assumptions as of December 31, | |||||||||||||||||
Pension Benefits | Postretirement Benefits | ||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||
Discount rate | 3.91 | % | 4.13 | % | 3.82 | % | 3.63 | % | 3.80 | % | 3.60 | % | |||||
Expected return on plan assets | 8.25 | % | 8.25 | % | 8.25 | % | N/A | N/A | N/A | ||||||||
Rate of compensation increase | 3.00 | % | 3.00 | % | 3.00 | % | N/A | N/A | N/A | ||||||||
Medical health care benefits rate increase | N/A | N/A | N/A | 6.50 | % | 6.75 | % | 7.00 | % | ||||||||
Medical drug benefits rate increase | N/A | N/A | N/A | 6.50 | % | 6.75 | % | 7.00 | % | ||||||||
Ultimate health care cost trend rate | N/A | N/A | N/A | 5.00 | % | 5.00 | % | 5.00 | % | ||||||||
Year of ultimate trend rate | N/A | N/A | N/A | 2025 | 2022 | 2022 |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Components of net periodic benefit cost | |||||||||||||||||||||||
Service costs | $ | 2.4 | $ | 2.6 | $ | 2.2 | $ | — | $ | — | $ | — | |||||||||||
Interest costs | 1.8 | 2.3 | 2.2 | 0.3 | 0.6 | 0.6 | |||||||||||||||||
Expected return on plan assets | (9.4 | ) | (10.2 | ) | (10.1 | ) | — | — | — | ||||||||||||||
Amortization of prior service cost (credit) | — | — | 0.1 | (0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||||||||||
Recognized net actuarial loss | 1.1 | 0.3 | — | 0.1 | 0.5 | 0.5 | |||||||||||||||||
Benefit (income) costs | $ | (4.1 | ) | $ | (5.0 | ) | $ | (5.6 | ) | $ | 0.3 | $ | 1.0 | $ | 1.0 | ||||||||
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss | |||||||||||||||||||||||
AOCI at beginning of year | $ | 25.5 | $ | 15.7 | $ | 2.2 | $ | 4.1 | $ | 7.2 | $ | 5.8 | |||||||||||
Net loss (gain) arising during the year | 1.7 | 10.1 | 13.1 | (2.6 | ) | (2.7 | ) | 1.8 | |||||||||||||||
Recognition of prior service credit | — | — | — | 0.1 | 0.1 | 0.1 | |||||||||||||||||
Recognition of actuarial loss | (1.1 | ) | (0.3 | ) | 0.4 | (0.1 | ) | (0.5 | ) | (0.5 | ) | ||||||||||||
Total recognized in accumulated other comprehensive loss at end of year | $ | 26.1 | $ | 25.5 | $ | 15.7 | $ | 1.5 | $ | 4.1 | $ | 7.2 |
Postretirement Benefits | |||||||||||||||
Pension Benefits | Gross | Expected Medicare Subsidy | Net including Medicare Subsidy | ||||||||||||
(In millions) | |||||||||||||||
2017 | $ | 4.7 | $ | 1.3 | $ | 0.2 | $ | 1.1 | |||||||
2018 | 4.4 | 1.2 | 0.2 | 1.0 | |||||||||||
2019 | 4.3 | 1.1 | 0.1 | 1.0 | |||||||||||
2020 | 4.5 | 1.0 | 0.1 | 0.9 | |||||||||||
2021 | 4.6 | 0.9 | 0.1 | 0.8 | |||||||||||
2022 to 2026 | 23.4 | 4.0 | 0.5 | 3.5 |
1-Percentage Point Increase | 1-Percentage Point Decrease | ||||||
(In millions) | |||||||
Effect on total of service and interest cost components in 2016 | $ | — | $ | — | |||
Effect on postretirement benefit obligation as of December 31, 2016 | $ | 0.7 | $ | (0.6 | ) |
Cumulative Translation Adjustment | Pension and Postretirement Benefits | Total | |||||||||
(In millions) | |||||||||||
Balance at January 1, 2014 | $ | 2.8 | $ | 0.6 | $ | 3.4 | |||||
Foreign currency translation adjustments(a) | (7.9 | ) | — | (7.9 | ) | ||||||
Pension and OPEB activity, net of tax adjustments(b) | — | (9.5 | ) | (9.5 | ) | ||||||
Balance at December 31, 2014 | (5.1 | ) | (8.9 | ) | (14.0 | ) | |||||
Foreign currency translation adjustments(a) | (11.8 | ) | — | (11.8 | ) | ||||||
Pension and OPEB activity, net of tax adjustments(b) | — | (4.2 | ) | (4.2 | ) | ||||||
Balance at December 31, 2015 | (16.9 | ) | (13.1 | ) | (30.0 | ) | |||||
Foreign currency translation adjustments(a) | (13.9 | ) | — | (13.9 | ) | ||||||
Pension and OPEB activity, net of tax adjustments(b) | — | 1.2 | 1.2 | ||||||||
Balance at December 31, 2016 | $ | (30.8 | ) | $ | (11.9 | ) | $ | (42.7 | ) |
(a) | No income taxes are provided on foreign currency translation adjustments as foreign earnings are considered permanently invested. |
(b) | The tax adjustments are reclassified out of accumulated other comprehensive income and included in income tax expense. |
Quarter Ended | |||||||||||||||
Mar. 31, | Jun. 30, | Sept. 30, | Dec. 31, | ||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||
2016 | |||||||||||||||
Net sales | $ | 328.0 | $ | 329.4 | $ | 312.7 | $ | 306.8 | |||||||
Gross profit | 47.8 | 54.3 | 54.3 | 46.6 | |||||||||||
Net income | 2.7 | 9.0 | 13.8 | 6.7 | |||||||||||
Net income attributable to noncontrolling interest | — | — | (0.3 | ) | (0.2 | ) | |||||||||
Net income attributable to ParkOhio common shareholders | $ | 2.7 | $ | 9.0 | $ | 13.5 | $ | 6.5 | |||||||
Earnings per common share attributable to ParkOhio common shareholders: | |||||||||||||||
Basic | $ | 0.22 | $ | 0.74 | $ | 1.12 | $ | 0.53 | |||||||
Diluted | $ | 0.22 | $ | 0.73 | $ | 1.10 | $ | 0.53 | |||||||
Cash dividends per common share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 | |||||||
2015 | |||||||||||||||
Net sales | $ | 374.7 | $ | 377.3 | $ | 364.4 | $ | 347.4 | |||||||
Gross profit | 58.4 | 60.4 | 62.3 | 54.1 | |||||||||||
Net income | 11.1 | 12.6 | 13.2 | 11.8 | |||||||||||
Net income attributable to noncontrolling interest | (0.3 | ) | (0.2 | ) | — | (0.1 | ) | ||||||||
Net income attributable to ParkOhio common shareholders | $ | 10.8 | $ | 12.4 | $ | 13.2 | $ | 11.7 | |||||||
Earnings per common share attributable to ParkOhio common shareholders: | |||||||||||||||
Basic | $ | 0.89 | $ | 1.02 | $ | 1.07 | $ | 0.96 | |||||||
Diluted | $ | 0.87 | $ | 1.00 | $ | 1.06 | $ | 0.95 | |||||||
Cash dividends per common share | $ | 0.125 | $ | 0.125 | $ | 0.125 | $ | 0.125 |
Description | Balance at Beginning of Period | Charged to Costs and Expenses | Deductions and Other | Balance at End of Period | |||||||||||
(In millions) | |||||||||||||||
Year Ended December 31, 2016: | |||||||||||||||
Allowances deducted from assets: | |||||||||||||||
Trade receivable allowances | $ | 3.3 | $ | 1.5 | $ | (0.8 | ) | (A) | $ | 4.0 | |||||
Inventory obsolescence reserve | 29.0 | 6.0 | (4.8 | ) | (B) | 30.2 | |||||||||
Tax valuation allowances | 4.8 | 0.5 | — | (C) | 5.3 | ||||||||||
Year Ended December 31, 2015: | |||||||||||||||
Allowances deducted from assets: | |||||||||||||||
Trade receivable allowances | $ | 4.1 | $ | 0.4 | $ | (1.2 | ) | (A) | $ | 3.3 | |||||
Inventory obsolescence reserve | 29.9 | 4.2 | (5.1 | ) | (B) | 29.0 | |||||||||
Tax valuation allowances | 7.1 | (0.7 | ) | (1.6 | ) | (C) | 4.8 | ||||||||
Year Ended December 31, 2014: | |||||||||||||||
Allowances deducted from assets: | |||||||||||||||
Trade receivable allowances | $ | 3.7 | $ | 0.3 | $ | 0.1 | (A) | $ | 4.1 | ||||||
Inventory obsolescence reserve | 28.4 | 8.4 | (6.9 | ) | (B) | 29.9 | |||||||||
Tax valuation allowances | 2.6 | (1.1 | ) | 5.6 | (C) | 7.1 |
Plan Category | Number of securities to be issued upon exercise price of outstanding options warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||
(a) | (b) | (c) | ||||||||
Equity compensation plans approved by security holders (1) | 38,000 | $ | 19.29 | 367,977 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 38,000 | $ | 19.29 | 367,977 |
(1) | Includes our 2015 Equity and Incentive Compensation Plan. |
Page | |
(2) Financial Statement Schedules | |
The following consolidated financial statement schedule of Park-Ohio Holdings Corp. is included in Item 8: | |
PARK-OHIO HOLDINGS CORP. | |
(Registrant) | |
By: | /s/ Patrick W. Fogarty |
Name: | Patrick W. Fogarty |
Title: | Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) |
* Edward F. Crawford | Chairman, Chief Executive Officer and Director (Principal Executive Officer) | March 9, 2017 | ||||
* Patrick W. Fogarty | Vice President and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||
* Matthew V. Crawford | President, Chief Operating Officer and Director | |||||
* Patrick V. Auletta | Director | |||||
* John D. Grampa | Director | |||||
* A. Malachi Mixon, III | Director | |||||
* Dan T. Moore, III | Director | |||||
* Ronna Romney | Director | |||||
* Steven H. Rosen | Director | |||||
* James W. Wert | Director |
* | The undersigned, pursuant to a Power of Attorney executed by each of the directors and officers identified above and filed with the Securities and Exchange Commission, by signing his name hereto, does hereby sign and execute this report on behalf of each of the persons noted above, in the capacities indicated. |
March 9, 2017 | By: | /s/ ROBERT D. VILSACK | ||||
Robert D. Vilsack, Attorney-in-Fact |
Exhibit | |
3.1 | Amended and Restated Articles of Incorporation of Park-Ohio Holdings Corp. (filed as Exhibit 3.1 to the Form 10-K of Park-Ohio Holdings Corp. for the year ended December 31, 1998, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
3.2 | Code of Regulations of Park-Ohio Holdings Corp. (filed as Exhibit 3.2 to the Form 10-K of Park-Ohio Holdings Corp. for the year ended December 31, 1998, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
4.1 | Sixth Amended and Restated Credit Agreement, dated July 31, 2014, among Industries, the other Loan Parties (as defined therein), the Lenders (as defined therein), JP Morgan Chase Bank, N.A., as Administrative Agent, JP Morgan Chase Bank, N.A., Toronto Branch, as Canadian Agent, JP Morgan Europe Limited, as European agent, RBS Business Capital, as Syndication Agent, KeyBank National Association and First National Bank of Pennsylvania, as Co-Documentation Agents, U.S. Bank National Association, as Co-Documentation Agent and Joint Bookrunner, PNC Bank, National Association , as Joint Bookrunner, and J.P. Morgan Securities, Inc. as Sole Lead Arranger and Bookrunning Manager (filed as Exhibit 10.1 to the Form 10-Q of Park-Ohio Holdings Corp., filed on November 10, 2014, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
4.2 | Amendment No. 1 to Sixth Amended and Restated Credit Agreement, dated October 24, 2014, among Park-Ohio Industries, Inc. and RB&W Corporation of Canada, as borrowers, the Ex-Im Borrowers party to the Credit Agreement (as defined therein) the other Loan Parties party to the Credit Agreement, the lenders party to the Credit Agreement, JPMorgan Chase Bank, N.A., as Administrative Agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Agent and JPMorgan Europe Limited, as European Agent (filed as Exhibit 4.2 to the Form 10-K of Park-Ohio Holdings Corp., filed on March 16, 2015, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
4.3 | Amendment No. 2 to Sixth Amended and Restated Credit Agreement, dated January11, 2015, among Park-Ohio Industries, Inc. and RB&W Corporation of Canada, as borrowers, the Ex-Im Borrowers party to the Credit Agreement (as defined therein) the other Loan Parties party to the Credit Agreement, the lenders party to the Credit Agreement, JPMorgan Chase Bank, N.A., as Administrative Agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Agent and JPMorgan Europe Limited, as European Agent (filed as Exhibit 10.1 to the Form 10-Q of Park-Ohio Holdings Corp., filed on May 11, 2015, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
4.4 | Amendment No. 3 to Sixth Amended and Restated Credit Agreement, dated March 12, 2015, among Park-Ohio Industries, Inc. and RB&W Corporation of Canada, as borrowers, the Ex-Im Borrowers party to the Credit Agreement (as defined therein) the other Loan Parties party to the Credit Agreement, the lenders party to the Credit Agreement, JPMorgan Chase Bank, N.A., as Administrative Agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Agent and JPMorgan Europe Limited, as European Agent (filed as Exhibit 10.2 to the Form 10-Q of Park-Ohio Holdings Corp., filed on May 11, 2015, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
Exhibit | |
4.5 | Amendment No. 4 to the Sixth Amended and Restated Credit Agreement, dated April 22, 2016, among Park-Ohio Industries, Inc. and RB&W Corporation of Canada, as borrowers, the Ex-Im Borrowers party to the Credit Agreement (as defined therein) the other Loan Parties party to the Credit Agreement, the lenders party to the Credit Agreement, JPMorgan Chase Bank, N.A., as Administrative Agent and JPMorgan Chase Bank, N.A., Toronto Branch, as Canadian Agent and JPMorgan Europe Limited, as European Agent. (filed as Exhibit 10.1 to the Form 10-Q of Park-Ohio Holdings Corp. filed on August 9, 2016, SEC File No. 000-03134 and incorporated herein by reference and made a part hereof) |
4.6 | Indenture, dated as of April 7, 2011, among Park-Ohio Industries, Inc., the Guarantors (as defined therein) and Wells Fargo Bank, NA, as trustee (filed as Exhibit 4.1 to the Form 8-K of Park-Ohio Holdings Corp. filed on April 13, 2011, SEC File No. 000-03134 and incorporated herein by reference and made a part hereof) |
10.1 | Form of Indemnification Agreement entered into between Park-Ohio Holdings Corp. and each of its directors and certain officers (filed as Exhibit 10.1 to the Form 10-K of Park-Ohio Holdings Corp. for the year ended December 31, 1998, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.2* | Amended and Restated 1998 Long-Term Incentive Plan (filed as Exhibit 10.1 to Form 8-K of Park-Ohio Holdings Corp., filed on May 30, 2012, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.3* | 2015 Equity and Incentive Compensation Plan (filed as Exhibit 4.4 to Form S-8 of Park-Ohio Holdings Corp., filed on June 4, 2015, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.4* | Form of Restricted Share Agreement between the Company and each non-employee director (filed as Exhibit 10.1 to Form 8-K of Park-Ohio Holdings Corp., filed on January 25, 2005, SEC File No. 000-03134 and incorporated herein by reference and made a part hereof) |
10.5* | Form of Restricted Share Agreement for Employees (filed as Exhibit 10.1 to Form 10-Q for Park-Ohio Holdings Corp. for the quarter ended September 30, 2006, SEC File No. 000-03134 and incorporated herein by reference and made a part hereof) |
10.6* | Form of Incentive Stock Option Agreement (filed as Exhibit 10.5 to Form 10-K of Park-Ohio Holdings Corp. for the year ended December 31, 2004, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.7* | Form of Non-Statutory Stock Option Agreement (filed as Exhibit 10.6 to Form 10-K of Park-Ohio Holdings Corp. for the year ended December 31, 2004, SEC File No. 000-03134 and incorporated herein by reference and made a part hereof) |
10.8* | Park-Ohio Industries, Inc. Annual Cash Bonus Plan (filed as Exhibit 10.2 to the Form 10-Q for Park-Ohio Holdings Corp, filed August 10, 2015, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.9* | Form of Performance Based Restricted Share Agreement (filed as Exhibit 10.1 to Form 10-Q of Park-Ohio Holdings Corp. filed August 10, 2015, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.10* | Supplemental Executive Retirement Plan for Edward F. Crawford, effective as of March 10, 2008 (filed as Exhibit 10.9 to Form 10-K of Park-Ohio Holdings Corp. for the year ended December 31, 2007, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
Exhibit | |
10.11* | Non-qualified Defined Contribution Retirement Benefit Letter Agreement for Edward F. Crawford, dated March 10, 2008 (filed as Exhibit 10.10 to Form 10-K of Park-Ohio Holdings Corp. for the year ended December 31, 2007, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.12* | 2009 Director Supplemental Defined Contribution Plan of Park-Ohio Holdings Corp. (Filed as Exhibit 10 to Form 10-Q of Park-Ohio Holdings Corp. filed May 10, 2011, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
10.13 | Confidential Separation Agreement and General Release between Park-Ohio Industries, Inc. and Park-Ohio Holdings Corp. and W. Scott Emerick (filed as Exhibit 10.1 to the Form 10-Q of Park-Ohio Holdings Corp., filed on November 9, 2015, SEC File No. 000-03134 and incorporated by reference and made a part hereof) |
21.1 | List of Subsidiaries of Park-Ohio Holdings Corp. |
23.1 | Consent of Independent Registered Public Accounting Firm |
24.1 | Power of Attorney |
31.1 | Principal Executive Officer’s Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
31.2 | Principal Financial Officer’s Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
32.1 | Certification requirement under Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Label Linkbase Document |
101.LAB | XBRL Taxonomy Extension Presentation Linkbase Document |
101.PRE | XBRL Taxonomy Extension Definition Linkbase Document |
* | Reflects management contract or other compensatory arrangement required to be filed as an exhibit pursuant to Item 15(c) of this Report. |
Company Name | Jurisdiction Organized | |
Ajax Tocco de Mexico, S.A. de C.V. | Mexico | |
Ajax Tocco International Limited | England | |
Ajax Tocco Magnethermic (Shanghai) Co., Ltd. | China | |
Ajax Tocco Magnethermic Corporation (5) | Ohio | |
Ajax Tocco Magnethermic Corporation Canada Limited | Canada | |
Ajax Tocco Magnethermic GmbH | Germany | |
Ajax Tocco Magnethermic Holdco S.r.l. | Italy | |
Ajax Tocco Magnethermic India Private Limited | India | |
Ajax Tocco Magnethermic Limited | Hong Kong | |
Ajax Tocco Transformadores do Brasil Ltda. | Brazil | |
Apollo Aerospace Components India Private Limited | India | |
Apollo Aerospace Components Limited | England | |
Apollo Aerospace Components Sp.Z.o.o. | Poland | |
Apollo Group Limited | England | |
Autoform Tool & Manufacturing, LLC | Indiana | |
Ballybeg Finance Company of Dublin Limited | Ireland | |
Bates Rubber, Inc. | Ohio | |
Chambersburg Acquisition Corp. | Pennsylvania | |
Apollo Aerospace Components LLC | Ohio | |
Control Transformer, Inc. | Ohio | |
EP Cleveland Holdings, Inc. | Delaware | |
EP Cleveland, Inc. | Delaware | |
EP Realty Holdings, Inc. | Delaware | |
Elastomeros Tecnicos Moldeados, Inc. | Texas | |
Elastomeros Tecnicos Moldeados, S. de R. L. de C.V. | Mexico | |
Europower CR s.r.o. | Czech Republic | |
Feco, Inc. | Illinois | |
Fluid Routing Solutions, LLC | Delaware | |
Foundry Service GmbH | Germany | |
Gateway Industrial Supply LLC | Ohio | |
General Aluminum Mfg. Company | Ohio | |
GH Able City Company Limited | China | |
GH Electrotermia, S.A. | Spain | |
GH Electrothermie, S.A.S. | France | |
GH Inducao do Brasil Ltda. | Brazil | |
GH Induction Atmospheres, LLC | New York | |
GH Induction Deutschland Gmbh | Germany | |
GH Induction Equipment Shanghai Co. Ltd. | China | |
GH Induction India Pvt. Ltd. | India | |
GH Mexicana, S.A. de C.V. | Mexico | |
IEGA Industrial Equipment Group Asian Holding Company Limited | Ireland | |
IEGE Industrial Equipment Group European Holding Company Limited | Ireland | |
ILS Supply Technologies SA de CV | Mexico | |
Induction Equipment (India) Private Limited | India | |
Induction Management Services, LLC | Michigan |
Company Name | Jurisdiction Organized | |
Integrated Holding Company | Ohio | |
Integrated Logistics Holding Company | Ohio | |
Integrated Logistics Solutions, Inc. | Ohio | |
Japan Ajax Magnethermic Co., Ltd. | Japan | |
M.P. Colinet S.P.R.L.U. | Belgium | |
NABS Supply Technologies S. De R.L. De C.V. | Mexico | |
ParkOhio Asian Holding Company Limited | Ireland | |
ParkOhio Automotive Components (Changshu) Co., Ltd. | China | |
ParkOhio European Holding Company Limited | Ireland | |
Park-Ohio Forged & Machined Products LLC (4) | Ohio | |
Park-Ohio Industries (Shanghai) Co. Ltd. | China | |
Park-Ohio Industries Treasury Company, Inc. | New York | |
Park-Ohio Industries, Inc. (1) | Ohio | |
ParkOhio International Holding Company Limited | Ireland | |
ParkOhio International Leasing Company Limited | Ireland | |
ParkOhio International Treasury Company Limited | Ireland | |
ParkOhio Latin American Holding Company Limited | Ireland | |
Park-Ohio Products, Inc. | Ohio | |
Park-Ohio U.K. Ltd. | England | |
Pharmaceutical Logistics, Inc. | Ohio | |
Pharmacy Wholesale Logistics, Inc. | Ohio | |
PKOH Corp. | Ohio | |
PKOH Supply Technologies Malaysia Sdn. Bhd. | Malaysia | |
P-O Realty LLC | Ohio | |
Precision Machining Connection LLC | Ohio | |
QEF Global Holdings Limited | Ireland | |
QEF (Global) Ireland Limited | Ireland | |
RB&W Corporation of Canada | Canada | |
RB&W Japan G.K. | Japan | |
RB&W Ltd. | Ohio | |
RB&W Manufacturing LLC (2) | Ohio | |
RB&W (Shanghai) Cold Forming Technologies Co., Ltd. | China | |
Saet S.p.A. | Italy | |
Saet India Private Limited | India | |
Saet Induction Equipment (Shanghai) Co. Ltd. | China | |
Snow Dragon LLC | Ohio | |
Southwest Steel Processing LLC | Ohio | |
Supply Technologies (India) Private Limited | India | |
Supply Technologies (IRLG) Limited | Ireland | |
Supply Technologies (NABS Ireland) Limited | Ireland | |
Supply Technologies (STDR) S.R.L. | Dominican Republic | |
Supply Technologies (UKG) Limited | Scotland | |
Supply Technologies (UKGRP) Limited | England | |
Supply Technologies Company of Canada (8) | Canada | |
Supply Technologies Company of Puerto Rico, Inc. | Puerto Rico | |
Supply Technologies International Trading (Shanghai) Co., Ltd. | China | |
Supply Technologies Kft | Hungary | |
Supply Technologies Limited | Hong Kong | |
Supply Technologies LLC (7) | Ohio |
Company Name | Jurisdiction Organized | |
Supply Technologies Poland Sp.z.o.o. | Poland | |
Supply Technologies Procurement Company, Inc. | Delaware | |
Supply Technologies Pte. Ltd. | Singapore | |
The Ajax Manufacturing Company (3) | Ohio | |
Tocco, Inc. | Alabama | |
TW Manufacturing Co. (6) | Ohio | |
Wind Energy, Inc. | Ohio | |
Wind Engery Technologies LLC | Delaware |
(1) | Doing business as Park Drop Forge and Ohio Crankshaft |
(2) | Doing business as Delo Screw Products |
(3) | Doing business as Ajax Technologies and Forging Developments International |
(4) | Doing business as Kropp Forge and Ajax-Ceco |
(5) | Doing business as PMC-Colinet, PMC Industries, Pines Engineering, Pillar Induction and H&H Tooling |
(6) | Doing business as Production Pattern Company |
(7) | Doing business as Sabina Mfg. |
(8) | Doing business as Direct Fasteners |
(1) | Registration Statement (Form S-3 No. 333-211906) pertaining to debt securities and common stock of Park-Ohio Holdings Corp., |
(2) | Registrations Statement (Form S-8 No. 333-204713) pertaining to the Park-Ohio Holdings Corp. 2015 Equity and Incentive Compensation Plan, |
(3) | Registration Statement (Form S-8 No. 333-182467) pertaining to the Park-Ohio Holdings Corp. Amended and Restated 1998 Long-Term Incentive Plan, |
(4) | Registration Statement (Form S-8 No. 333-01047) pertaining to the Individual Account Retirement Plan, |
(5) | Registration Statement (Form S-8 No. 333-58161) pertaining to the Park-Ohio Holdings Corp. Amended and Restated 1998 Long-Term Incentive Plan, |
(6) | Registration Statement (Form S-8 No. 333-110536) pertaining to the Park-Ohio Holdings Corp. Amended and Restated 1998 Long-Term Incentive Plan, |
(7) | Registration Statement (Form S-8 No. 333-137540) pertaining to the Park-Ohio Holdings Corp. Amended and Restated 1998 Long-Term Incentive Plan, and |
(8) | Registration Statement (Form S-8 No. 333-161474) pertaining to the Park-Ohio Holdings Corp. Amended and Restated 1998 Long-Term Incentive Plan; |
EXECUTED as of March 9, 2017. | ||
/s/ Edward F. Crawford | /s/ Patrick W. Fogarty | |
Edward F. Crawford | Patrick W. Fogarty, Vice President and Chief | |
Chief Executive Officer, Chairman of the Board | Financial Officer | |
and Director | ||
/s/ Matthew V. Crawford | /s/ Dan T. Moore | |
Matthew V. Crawford | Dan T. Moore, Director | |
President, Chief Operating Officer, and Director | ||
/s/ Patrick V. Auletta | /s/ Ronna Romney | |
Patrick V. Auletta, Director | Ronna Romney, Director | |
/s/ John D Grampa | /s/ James W. Wert | |
John D. Grampa, Director | James W. Wert, Director | |
/s/ A. Malachi Mixon, III | /s/ Steven H. Rosen | |
A. Malachi Mixon, III, Director | Steven H. Rosen, Director |
1. | I have reviewed this annual report on Form 10-K of Park-Ohio Holdings Corp.; |
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 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 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. |
By: | /s/ Edward F. Crawford |
Name: | Edward F. Crawford |
Title: | Chairman and Chief Executive Officer |
1. | I have reviewed this annual report on Form 10-K of Park-Ohio Holdings Corp.; |
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 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 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. |
By: | /s/ Patrick W. Fogarty |
Name: | Patrick W. Fogarty |
Title: | Vice President and Chief Financial Officer |
(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 operations of the Company as of the dates and for the periods expressed in the Report. |
By: | /s/ Edward F. Crawford |
Name: | Edward F. Crawford |
Title: | Chairman and Chief Executive Officer |
By: | /s/ Patrick W. Fogarty |
Name: | Patrick W. Fogarty |
Title: | Vice President and Chief Financial Officer |
Document and Entity Information - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 28, 2017 |
Jun. 30, 2016 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PARK OHIO HOLDINGS CORP | ||
Entity Central Index Key | 0000076282 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 238,663 | ||
Entity Common Stock, Shares Outstanding | 12,415,301 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 4.0 | $ 3.3 |
Capital stock, par value (in dollars per share) | $ 1 | $ 1 |
Serial preferred stock, shares authorized (in shares) | 632,470 | 632,470 |
Serial preferred stock, shares issued (in shares) | 0 | 0 |
Serial preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 14,846,035 | 14,653,985 |
Treasury stock, shares (in shares) | 2,446,111 | 2,383,903 |
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 32.2 | $ 48.7 | $ 46.9 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (13.9) | (11.8) | (7.9) |
Pension and postretirement benefit adjustments, net of tax | 1.2 | (4.2) | (9.5) |
Total other comprehensive (loss) income | (12.7) | (16.0) | (17.4) |
Total comprehensive income, net of tax | 19.5 | 32.7 | 29.5 |
Comprehensive income attributable to noncontrolling interest | (0.5) | (0.6) | (1.3) |
Comprehensive income attributable to ParkOhio common shareholders | $ 19.0 | $ 32.1 | $ 28.2 |
Consolidated Statement of Shareholders' Equity (Parenthetical) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Treasury Stock | |||
Purchase of treasury stock (in shares) | 62,208 | 369,211 | 79,733 |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation and Basis of Presentation: Park-Ohio Holdings Corp. (“ParkOhio” “we” or the “Company”) is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. The Company leases certain real properties owned by related parties as described in Note 10. Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows. Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Actual results could differ from those estimates. Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value.
Property, Plant and Equipment: Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of assets are capitalized, and expenditures for repairs and maintenance are charged to operations as incurred. Depreciation and amortization of fixed assets, including capital leases, is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 40 years for buildings, and one to 20 years for machinery and equipment (with the majority in the range of three to ten years). The following table summarizes property, plant and equipment:
Information regarding depreciation expense of property, plant and equipment follows:
Impairment of Long-Lived Assets: We assess the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives whenever impairment indicators exist. When impairment indicators exist, we measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future undiscounted cash flows to be generated by that asset. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. We measure the amount of impairment of other long-lived assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined, based on projected discounted future cash flows or appraised values. Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other” (“ASC 350”), goodwill and indefinite life intangible assets are not amortized, but rather are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be an indicator of impairment in accordance with ASC 350. Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets, compared to the fair value. Our reporting units have been identified at the component level. The Company completed its annual goodwill and indefinite-lived intangibles impairment testing as of October 1 of each year, noting no impairment. The Company uses an income approach, utilizing a discounted cash flow mode based on forecasted cash flows and weighted average cost of capital, and other valuation techniques to determine fair value. See Notes 4 and 5 of the consolidated financial statements for additional disclosure on goodwill and indefinite-lived intangibles. Fair Values of Financial Instruments: Certain financial instruments are required to be recorded at fair value. The Company measures financial assets and liabilities at fair value in three levels of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 6) approximate fair value at December 31, 2016 and December 31, 2015 because of the short-term nature of these instruments. The fair values of long-term debt and pension plan assets are disclosed in Note 6 and Note 11, respectively. The Company has not changed its valuation techniques for measuring fair value during 2016, and there were no transfers between levels during the periods presented. Income Taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and the tax bases of assets and liabilities and are measured using the current enacted tax rates. In determining these amounts, management determined the probability of realizing deferred tax assets, taking into consideration factors including historical operating results, cumulative earnings and losses, expectations of future earnings, taxable income and the extended period of time over which the postretirement benefits will be paid and accordingly records valuation allowances if, based on the weight of available evidence, it is more likely than not that some portion or all of our deferred tax assets will not be realized as required by ASC 740, “Income Taxes” (“ASC 740”). Share-Based Compensation: The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their grant date fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period. Compensation expense of performance-based awards is recognized as an expense over the vesting periods of the awards using the accelerated attribution method once performance is deemed probable. Under the provisions of the Company’s 2015 Equity and Incentive Compensation Plan (“2015 Plan”), which is administered by the Compensation Committee of the Company’s Board of Directors, incentive stock options, non-statutory stock options, stock appreciation rights (“SARs”), restricted share units, performance shares or stock awards may be awarded to directors and all employees of the Company and its subsidiaries. The 2015 Plan replaces in its entirety the 1998 Long-Term Incentive Plan, as amended (“1998 Plan”), but shares that remained available under the 1998 Plan were added to the aggregate share limit under that 2015 Plan. Stock options will be exercisable in whole or in installments as may be determined provided that no options will be exercisable more than ten years from date of grant. The exercise price will be the fair value at the date of grant. The aggregate number of shares of the Company’s common stock that may be awarded under the 2015 Plan is 367,977. Revenue Recognition: The Company recognizes revenue, other than from long-term contracts, when title is transferred to the customer, typically upon shipment. Revenue from long-term contracts is accounted for under the percentage of completion method, and recognized on the basis of the percentage each contract’s cost to date bears to the total estimated contract cost. We follow this method since reasonably dependable estimates of revenue and costs of a contract can be made. Revenue earned on contracts in process that are in excess of billings is classified as unbilled contract revenues in Other current assets in the Consolidated Balance Sheet. Billings in excess of revenues earned on contracts in process are classified in Other accrued expenses in the Consolidated Balance Sheet and totaled $22.7 million and $16.8 million at December 31, 2016 and 2015, respectively. Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product; manufacturing labor, depreciation expense and direct overhead expense; and shipping and handling costs. Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable are recorded at net realizable value. Accounts receivable are reduced by an allowance for amounts that may become uncollectable in the future. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history as well as a general reserve based on historical trends and other information. During 2016 and 2015, we sold approximately $81.6 million and $118.5 million, respectively, of accounts receivable to mitigate accounts receivable concentration risk and to provide additional financing capacity. In compliance with ASC 860, “Transfers and Servicing”, sales of accounts receivable are reflected as a reduction of accounts receivable in the Consolidated Balance Sheets and the proceeds are included in cash flows from operating activities in the Consolidated Statements of Cash flows. In 2016 and 2015, an expense in the amount of $0.5 million and $0.6 million, respectively, related to the discount on sale of accounts receivable is recorded in the Consolidated Statements of Income. Concentration of Credit Risk: The Company sells its products to customers in diversified industries. The Company performs ongoing credit evaluations of its customers’ financial condition but does not require collateral to support customer receivables. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. As of December 31, 2016, the Company had uncollateralized receivables with six customers in the automotive industry, each with several locations, aggregating $37.8 million, which represented approximately 19% of the Company’s trade accounts receivable. During 2016, sales to these customers amounted to approximately $276.9 million, which represented approximately 22% of the Company’s net sales. Environmental: The Company expenses environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Costs that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company records a liability when environmental assessments and/or remedial efforts are probable and can be reasonably estimated. The estimated liability of the Company is not reduced for possible recoveries from insurance carriers and is undiscounted. Foreign Currency Translation: The functional currency for a majority of subsidiaries outside the United States is the local currency. Financial statements for these subsidiaries are translated into U.S. dollars at year-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. The resulting translation adjustments are recorded in Accumulated other comprehensive income (loss) in shareholders’ equity. Gains and losses resulting from foreign currency translations, including intercompany transactions that are not considered permanent investments, are included in the Consolidated Statements of Income. Warranties: Warranty liabilities are primarily associated with the Company’s industrial equipment business unit and the fluid routing solutions business. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents the changes in the Company’s product warranty liability:
Weighted-Average Number of Shares Used in Computing Earnings Per Share: The following table sets forth the weighted-average number of shares used in the computation of earnings per share:
Outstanding stock options with exercise prices greater than the average price of the common shares are anti-dilutive and are not included in the computation of diluted earnings per share. For the year ended December 31, 2016 and 2015, the anti-dilutive shares were insignificant. Accounting Pronouncements Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” The ASU requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs will continue to be reported as interest expense. The Company adopted this ASU during the first quarter of 2016 and applied this standard retrospectively to 2015. The new guidance impacted only the presentation of the Company's financial position and did not affect the Company's results of operations or cash flows. Refer to Note 6 for the impact on our consolidated balance sheet at December 31, 2015. In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent).” Under the new guidance, investments measured at net asset value (“NAV”), as a practical expedient for fair value, are excluded from the fair value hierarchy. Removing investments measured using the practical expedient from the fair value hierarchy is intended to eliminate the diversity in practice that currently exists with respect to the categorization of these investments. The new guidance was effective for the Company on January 1, 2016. The guidance impacted the presentation of certain pension related assets that use NAV as a practical expedient. See Note 11 for additional information. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. generally accepted accounting principles and International Financial Reporting Standards. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The ASU will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is in the process of analyzing the impact of ASU 2014-09, and the related ASUs, across all its businesses. This includes reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements under the new standard. The Company expects to adopt the new standard using the modified retrospective approach, under which the cumulative effect of initially applying the new guidance is recognized as an adjustment to the opening balance of retained earnings upon adoption effective January 1, 2018. We are still evaluating the impact and an estimation of the impact cannot be made at this time. In January 2016, the FASB issued ASU 2016-1, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Board also is addressing measurement of credit losses on financial assets in a separate project. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The new guidance will be applied prospectively. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The amendment establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. This ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The ASU is effective for fiscal years beginning with the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The objective of the ASU is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to uses of the financial statements. The ASU is effective for fiscal years beginning with the first quarter of 2018, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Segments |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments | Segments The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. Supply Technologies provides our customers with Total Supply Management™ services for a broad range of high-volume, specialty production components. Assembly Components manufactures cast aluminum components, automotive and industrial rubber and thermoplastic products, gasoline direct injection systems, fuel filler and hydraulic assemblies for automotive, agricultural equipment, construction equipment, heavy-duty truck and marine equipment industries, and also provides value-added services such as design and engineering, machining and assembly. Engineered Products operates a diverse group of niche manufacturing businesses that design and manufacture a broad range of high quality products engineered for specific customer applications. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs, certain non-cash charges and interest expense. Results by business segment were as follows:
The percentage of net sales by product line included in each segment was as follows:
The Company’s approximate percentage of net sales by geographic region was as follows:
The basis for attributing revenue to individual geographic regions is customer location. At December 31, 2016, 2015 and 2014, approximately 68%, 71% and 72%, respectively, of the Company’s assets were located in the United States. |
Acquisitions |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Acquisitions | Acquisitions In December 2016, the Company acquired all the outstanding capital stock of GH Electrotermia S.A. (“GH”), headquartered in Valencia, Spain, for $23.4 million in cash (net of $6.3 million cash acquired), plus the assumption of $13.9 million in debt. GH, which had 2016 revenues of approximately $55 million, is a global leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions; operates through its locations in Spain, India, Germany, China and the United States; and strengthens our position as the global leader of induction products and adds key technologies to our already diverse portfolio of induction hardening capabilities. The purchase agreement provides payment of contingent consideration of up to $2.1 million based on achievement of certain EBITDA targets over 2016 and 2017. The estimated fair value of the earn-out, valued using level 3 inputs, was approximately $1.1 million at the date of the acquisition. The allocation of the purchase price is subject to finalization of the Company's determination of the fair value of assets acquired and liabilities assumed as of the acquisition date and could materially differ from those presented above. The Company has not yet finalized its analysis of the fair value of property, plant and equipment; intangible assets; noncontrolling interest, deferred taxes and certain other assets and liabilities. The final allocation is expected to be completed as soon as practicable but no later than twelve months after the acquisition date. Below is the estimated purchase price allocation related to the acquisition of GH:
In December 2014, the Company acquired all the outstanding capital stock of Saet S.p.A. (“Saet”) for $22.1 million in cash. Saet is a leader in the design, manufacturing and testing of induction heating equipment and heat treat solutions through its locations in Italy, China, India and Tennessee. The financial results of Saet are included in the Company's Engineered Products segment from the date of acquisition. In October 2014, the Company acquired all the outstanding capital stock of Autoform Tool and Manufacturing (“Autoform”) for a total purchase consideration of $48.9 million in cash. The acquisition was funded from borrowings under the revolving credit facility provided by the Credit Agreement. Autoform is a supplier of high pressure fuel lines and fuel rails used in Gasoline Direct Injection systems across a large number of engine platforms. Autoform's production facilities are located in Indiana. The financial results of Autoform are included in the Company's Assembly Components segment from the date of acquisition. In June 2014, the Company acquired all the outstanding capital stock of Apollo Aerospace Group (“Apollo”) for $6.5 million, net of cash acquired. Apollo is a supply chain management services company providing Class C production components and supply chain solutions to aerospace customers worldwide. The financial results of Apollo are included in the Company's Supply Technologies segment from the date of acquisition. The Apollo purchase agreement provided for potential payment of contingent consideration of up to $2.4 million based on achievement of certain EBITDA targets over two years. In the third quarter of 2016, the Company paid $2.0 million for this earn-out. |
Goodwill |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill The changes in the carrying amount of goodwill by reportable segment:
Goodwill associated with the GH, Apollo and Saet acquisitions is not deductible for income tax purposes. Acquisition adjustments in 2015 relate primarily to measurement period adjustments to the valuation of the Saet acquisition from 2014. The 2014 consolidated financial statements have not been retroactively adjusted as these measurement period adjustments did not have a material impact on such statements. The 2014 increase relates to the acquisitions of Apollo, Autoform and Saet. |
Other Intangible Assets |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets | Other Intangible Assets Information regarding other intangible assets follows:
As part of the GH acquisition, we acquired an estimated $7.5 million of technology and $4.4 million of indefinite-lived tradename assets. As described in Note 3, the fair value of these intangible assets is subject to the finalization of the fair value analysis, expected to be completed no later than twelve months after the acquisition date. Amortization expense of other intangible assets follows:
We estimate amortization expense for the five years subsequent to December 31, 2016 as follows:
|
Financing Arrangements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Arrangements | Financing Arrangements Long-term debt consists of the following:
On December 21, 2016, the Company, through its subsidiary, Industrial Equipment Group European Holding Company Limited subsidiary, entered into a financing agreement with Banco Bolbao Vizcaya Argentaria, S.A. The financing agreement provides the Company the ability to borrow up to $36.9 million, including a loan for $26.4 million for the acquisition of GH as well as a revolving credit facility for up to $10.5 million to fund working capital and general corporate needs. The full amount of the loan is outstanding as of December 31, 2016; no amounts have been drawn on the revolving credit facility as of December 31, 2016. In addition to the Agreement, the Company also assumed long-term debt of $8.9 million and short-term debt of $5.0 million as part of the GH acquisition. On April 22, 2016, the Company further amended its credit facility (the “Amended Credit Agreement”) to:
Under the Amended Credit Agreement, a detailed borrowing base formula provides borrowing availability to the Company based on percentages of eligible accounts receivable and inventory. At the Company’s election, domestic amounts borrowed under the revolving credit facility may be borrowed at either LIBOR plus 1.5% to 2.5%; or the bank’s prime lending rate minus 0.25% to 1.25%. The LIBOR-based interest rate is dependent on the Company’s debt service coverage ratio, as defined in the Amended Credit Agreement. Amounts borrowed under the Canadian revolving credit facility provided by the Amended Credit Agreement may be borrowed at either the Canadian deposit offered rate plus 1.5% to 2.5%; the Canadian prime lending rate plus 0.0% to 1.0%; or the US base rate plus 0.0% to 1.0%. On October 21, 2015, the Company, through its subsidiary, Southwest Steel Processing LLC, entered into a financing agreement with the Arkansas Development Finance Authority. The agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The loan matures in September 2025. The Company has borrowed $6.2 million under this agreement as of December 31, 2016. On August 13, 2015, the Company entered into a capital lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for capital leases. See Note 10 for additional disclosure. The term loan is amortized based on a seven-year schedule with the balance due at maturity (July 31, 2019). The Amended Credit Agreement also reduced the commitment fee for the revolving credit facility. At the Company's election, amounts borrowed under the term loan may be borrowed at either LIBOR plus 2.0% to 3.0%; or the bank’s prime lending rate minus 0.75% to plus 0.25%. At December 31, 2016, the Company had approximately $106.2 million of unused borrowing capacity under the revolving credit facility. The following table represents fair value information of the Company's senior notes due 2021 (the “Senior Notes”), classified as Level 1, at December 31, 2016 and 2015. The fair value was estimated using quoted market prices.
Maturities of short-term and long-term debt, excluding capital leases, during each of the five years subsequent to December 31, 2016 are as follows:
Foreign subsidiaries of the Company had $42.4 million of borrowings at December 31, 2016 and $0.8 million at December 31, 2015 and outstanding bank guarantees of approximately $9.9 million and $3.9 million at December 31, 2016 and 2015, respectively, under their credit arrangements. The Senior Notes are general unsecured senior obligations of the Company and are fully and unconditionally guaranteed on a joint and several basis by all material 100% owned domestic subsidiaries of the Company. Provisions of the indenture governing the Senior Notes and the Credit Agreement contain restrictions on the Company’s ability to incur additional indebtedness, to create liens or other encumbrances, to make certain payments, investments, loans and guarantees and to sell or otherwise dispose of a substantial portion of assets or to merge or consolidate with an unaffiliated entity. At December 31, 2016, the Company was in compliance with all financial covenants of the Credit Agreement. The weighted average interest rate on all debt was 5.73% at December 31, 2016 and 5.47% at December 31, 2015. |
Income Taxes |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Income before income taxes consists of the following:
Income taxes consists of the following:
A reconciliation of income tax expense computed by applying the statutory federal income tax rate to income before income taxes as recorded is as follows:
Significant components of the Company’s net deferred income tax assets and liabilities are as follows:
At December 31, 2016, the Company has U.S., state and foreign net operating loss carryforwards for income tax purposes. The foreign net operating loss carryforward is $22.1 million, of which $5.5 million expires between 2017 and 2036 and the remainder has no expiration date. The Company has a tax benefit from a state net operating loss carryforward of $2.7 million that expires between 2017 and 2036. The Company also has a tax benefit from a non-consolidated U.S. net operating loss carryforward of $1.1 million that expires between 2035 and 2036. As of December 31, 2016 and 2015, the Company was not in a cumulative three-year loss position and it was determined that it was more likely than not that its U.S. deferred tax assets will be realized. As of December 31, 2014, the Company reversed a valuation allowance of $1.3 million against its state net operating loss carryforward. As of December 31, 2016 and 2015, the Company recorded valuation allowances of $4.5 million and $4.2 million, respectively, against certain foreign net deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income (including reversals of deferred tax liabilities). The Company reviews all valuation allowances related to deferred tax assets and will reverse these valuation allowances, partially or totally, when appropriate under ASC 740. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate is $2.4 million at December 31, 2016 and $5.5 million at December 31, 2015. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. During the year ended December 31, 2016 and 2015, the Company recognized approximately $(1.4) million and $0.2 million, respectively, in net interest and penalties. The Company had approximately $0.4 million and $1.9 million for the payment of interest and penalties accrued at December 31, 2016 and 2015, respectively. It is reasonably possible that within the next twelve months the amount of gross unrecognized tax benefits could be reduced by approximately $1.4 million as a result of the closure of tax statutes related to existing uncertain tax positions. The Company is subject to taxation in the U.S. and various state and foreign jurisdictions. The Company’s tax years for 2013 through 2016 remain open for examination by the Internal Revenue Service and 2012 through 2016 remain open for examination by various state and foreign taxing authorities. Deferred taxes have not been provided on approximately $131.1 million of undistributed earnings of the Company’s foreign subsidiaries as it is the Company’s policy and intent to permanently reinvest such earnings. The Company has determined that it is not practicable to determine the unrecognized tax liability on such undistributed earnings. |
Share-Based Compensation |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation | Share-Based Compensation A summary of stock option activity as of December 31, 2016 and changes during the year then ended is presented below:
Exercise prices for options outstanding as of December 31, 2016 range from $15.61 to $24.92. The total intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $0.9 million, $3.3 million and $0.1 million, respectively. Net cash proceeds from the exercise of stock options were $0.5 million, $1.2 million and $0, respectively. There were no stock options awarded in 2016, 2015 or 2014. A summary of restricted share and performance share activity for the year ended December 31, 2016 is as follows:
(a) Included in the granted amount are 6,020 restricted share units. (b) During the second quarter of 2016, 40,000 of the performance-based restricted shares granted in 2015 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 80,000 shares became time-based, vesting over the remaining two years of the requisite service period. During the first quarter of 2016, 1,500 shares were awarded, vested and expensed at the time of the award. The value of the award was immaterial. The Company recognized compensation expense of $10.6 million, $7.3 million and $5.8 million for the years ended December 31, 2016, 2015 and 2014, respectively, relating to time-based shares and performance shares. The total fair value of restricted stock units vested during the years ended December 31, 2016, 2015 and 2014 was $5.1 million, $9.0 million and $11.5 million, respectively. As of December 31, 2016, the Company had unrecognized compensation expense of $7.5 million, before taxes, related to stock option awards and restricted shares. The unrecognized compensation expense is expected to be recognized over a total weighted average period of 1.4 years. The number of shares available for future grants for all plans at December 31, 2016 is 367,977. |
Commitments, Contingencies and Litigation Judgment |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Litigation Judgment | Commitments, Contingencies and Litigation Judgment The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. Although the Company cannot precisely predict the amount of any liability that may ultimately arise with respect to any of these matters, the Company records provisions when it considers the liability probable and reasonably estimable. Our provisions are based on historical experience and legal advice, reviewed quarterly and adjusted according to developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments about potential actions by third parties, such as regulators, courts, and state and federal legislatures. Changes in the amounts of our loss provisions, which can be material, affect our financial condition. Due to the inherent uncertainties in the process undertaken to estimate potential losses, we are unable to estimate an additional range of loss in excess of our accruals. While it is reasonably possible that such excess liabilities, if they were to occur, could be material to operating results in any given quarter or year of their recognition, we do not believe that it is reasonably possible that such excess liabilities would have a material adverse effect on our long-term results of operations, liquidity or consolidated financial position. Our subsidiaries are involved in a number of contractual and warranty related disputes. At this time, we cannot reasonably determine the probability of a loss, and the timing and amount of loss, if any, cannot be reasonably estimated. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. IPSCO Tubulars Inc. d/b/a TMK IPSCO sued Ajax Tocco Magnethermic Corporation (“ATM”), a subsidiary of Park-Ohio Holdings Corporation, in the United States District Court for the Eastern District of Arkansas claiming that equipment supplied by ATM for heat treating certain steel pipe at IPSCO's Blytheville, Arkansas facility did not perform as required by the contract. The complaint alleged causes of action for breach of contract, gross negligence and constructive fraud. IPSCO sought approximately $10 million in damages plus an unspecified amount of punitive damages. ATM denied the allegations. ATM subsequently obtained summary judgment on the constructive fraud claim, which was dismissed by the district court prior to trial. The remaining claims were the subject of a bench trial that occurred in May 2013. After IPSCO presented its case, the district court entered partial judgment in favor of ATM, dismissing the gross negligence claim, a portion of the breach of contract claim, and any claim for punitive damages. The trial proceeded with respect to the remainder of IPSCO's claim for breach of contract. In September 2013, the district court issued a judgment in favor of IPSCO in the amount of $5.2 million, which the Company recognized and accrued for at that time. IPSCO subsequently filed a motion seeking to recover $3.8 million in attorneys’ fees and costs. The district court reserved ruling on that issue pending an appeal. In October 2013, ATM filed an appeal with the U.S. Court of Appeals for the Eighth Circuit seeking reversal of the judgment in favor of IPSCO. In November 2013, IPSCO filed a cross-appeal seeking reversal of the dismissal of its claim for gross negligence and punitive damages. The Eighth Circuit issued an opinion in March 2015 affirming in part, reversing in part, and remanding the case. It affirmed the district court's determination that ATM was liable for breach of contract. It also affirmed the district court's dismissal of IPSCO's claim for gross negligence and punitive damages. However, the Eighth Circuit reversed nearly all of the damages awarded by the district court and remanded for further findings on the issue of damages, including whether consequential damages are barred under the express language of the contract. Because IPSCO did not appeal the award of $5.2 million in its favor, those damages could be decreased, but could not be increased, on remand. On remand, the district court entered an order once again awarding IPSCO $5.2 million In December 2015, ATM filed a second appeal with the Eighth Circuit seeking reversal of the damages award. That appeal is pending. In March 2016, the district court issued an order granting, in part, IPSCO's motion for fees and costs and awarding $2.2 million to IPSCO, which the Company accrued for as of December 31, 2015. ATM filed a third appeal of that decision. As of December 31, 2016, the Company had $7.4 million accrued for this matter. In August 2013, we received a subpoena from the staff of the SEC in connection with the staff’s investigation of a third party. At that time, we also learned that the Department of Justice (“DOJ”) is conducting a criminal investigation of the third party. In connection with its initial response to the staff’s subpoena, we disclosed to the staff of the SEC that, in November 2007, the third party participated in a payment on behalf of us to a foreign tax official that implicates the Foreign Corrupt Practices Act. The Board of Directors formed a special committee to review our transactions with the third party and to make any recommendations to the Board of Directors with respect thereto. The Company intends to cooperate fully with the SEC and the DOJ in connection with their investigations of the third party and with the SEC in light of the Company’s disclosure. The Company is unable to predict the outcome or impact of the special committee’s investigation or the length, scope or results of the SEC’s review or the impact on its results of operations. |
Lease Arrangements |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Arrangements | Lease Arrangements Future minimum lease commitments during each of the five years following December 31, 2016 and thereafter are as follows:
Rental expense for 2016, 2015 and 2014 was $18.5 million, $19.7 million and $18.6 million, respectively. Certain of the Company’s leases are with related parties at an annual rental expense of approximately $2.4 million. Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows. Assets recorded under capital leases are included in property, plant and equipment and consist of the following:
Amortization of machinery and equipment under capital leases is included in depreciation expense. Capital lease obligations of $18.8 million were borrowed from the $50.0 million Lease Agreement to acquire machinery and equipment during 2016. |
Pensions and Postretirement Benefits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pensions and Postretirement Benefits | Pensions and Postretirement Benefits The Company and its subsidiaries have pension plans, principally noncontributory defined benefit or noncontributory defined contribution plans, covering substantially all employees. In addition, the Company has an unfunded postretirement benefit plan. One of its defined benefit plans, covering most U.S. employees not covered by collective bargaining agreements, utilizes a cash balance formula. Under a cash balance formula, a plan participant accumulates a retirement benefit consisting of pay credits that are based upon a percentage of current eligible earnings and current interest credits. For the remaining defined benefit plans, benefits are based on the employee’s years of service. For the defined contribution plans, the costs charged to operations and the amount funded are based upon a percentage of the covered employees’ compensation. The Company's objective for the pension plan is to monitor the funded ratio; create general investment goals in regards to acceptable risk and liquidity needs ensuring the long-term interests of participants and beneficiaries are considered; and manage risk by minimizing the short-term and long-term risk of actual expenses and contribution requirements. The following tables set forth the changes in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2016 and 2015:
Amounts recognized in the consolidated balance sheets consist of:
The pension plan weighted-average asset allocation at December 31, 2016 and 2015 and target allocation for 2017 are as follows:
The following table sets forth, by level within the fair value hierarchy, the pension plans assets:
The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31 and the measurement of the net periodic benefit cost in the following year.
In determining its expected return on plan assets assumption for the year ended December 31, 2016, the Company considered historical experience, its asset allocation, expected future long-term rates of return for each major asset class, and an assumed long-term inflation rate. This assumption was supported by the asset return generation model, which projected future asset returns using simulation and asset class correlation. Effective December 31, 2015, the Company adopted a change in the method used to estimate the service and interest cost components of net periodic benefit cost for its defined benefit pension plans. Historically, the service and interest cost components were estimated using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. For 2016, the Company used a spot rate approach by applying the specific spot rates along the yield curve to the relevant projected cash flows in the estimation of the service and interest components of benefit cost, resulting in a more precise measurement. These spot rates were determined as of the measurement date of December 31, 2015. This change does not affect the measurement of total benefit obligations. The change was accounted for as a change in estimate and, accordingly, was accounted for prospectively starting in 2016. The spot rates used to determine service and interest costs ranged from 3.29% to 4.19% for the U.S. pension plan. The reductions in service and interest costs for 2016 associated with this change were $0.1 million and $0.5 million, respectively. Similar to the changes in the discount rate approach discussed for the pension plans above, effective December 31, 2015, we elected to use an approach that discounts the individual expected cash flows underlying interest and service costs using the applicable spot rates derived from the yield curve used to determine the benefit obligation to the relevant projected cash flows. The spot rates used to determine service and interest costs ranged from 2.93% to 4.43% for the postretirement benefit plans. The reductions in service and interest costs in 2016 associated with this change were $0.0 million and $0.1 million, respectively.
The estimated net loss, prior service cost and net transition obligation for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2017 is $1.1 million. The estimated net loss and prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the year ending December 31, 2017 is less than $0.1 million. Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years:
The Company has a postretirement benefit plan. Under the plan, health care benefits are provided on both a contributory and noncontributory basis. The assumed health care cost trend rate has a significant effect on the amounts reported. A one-percentage-point change in the assumed health care cost trend rate would have the following effects:
The Company expects to make no contributions to its defined benefit plans in 2017. In January 2008, a Supplemental Executive Retirement Plan (“SERP”) for the Company’s Chairman and Chief Executive Officer (“CEO”) was approved by the Compensation Committee of the Board of Directors of the Company. The SERP provides an annual supplemental retirement benefit for up to $0.4 million upon the CEO’s termination of employment with the Company. The vested retirement benefit will be equal to a percentage of the SERP that is equal to the ratio of: (1) his credited service with the Company prior to January 1, 2008 (up to a maximum of thirteen years), plus his credited service after January 1, 2008 (up to a maximum of seven years) to (2) twenty years of credited service. In the event of a change in control before the CEO’s termination of employment, he will receive 100% of the SERP. The Company recorded income of $0.2 million in 2016, and expense of $0.6 million in 2015 and $0.5 million in 2014 related to the SERP. |
Accumulated Other Comprehensive Income (Loss) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2016, 2015, and 2014 were as follows:
|
Subsequent Events |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 31, 2017, the Company's Board of Directors declared a quarterly dividend of $0.125 per common share. The dividend was paid on March 1, 2017, to shareholders of record as of the close of business on February 15, 2017 and resulted in a cash outlay of approximately $1.6 million. |
Selected Quarterly Financial Data (Unaudited) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited)
An asset impairment charge of $4.0 million was recorded in the first quarter of 2016 due to the accelerated end of production in certain programs with an automotive customer. In March 2016, the United States District Court for the Eastern District of Arkansas issued an order granting, in part, IPSCO's motion for fees and costs and awarding $2.2 million to IPSCO, which the Company accrued for in the fourth quarter of 2015. |
Schedule II - Valuation and Qualifying Accounts and Reserves |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts and Reserves | Schedule II PARK-OHIO HOLDINGS CORP. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES
Note (A)- Uncollectable accounts written off, net of recoveries. Note (B)- Amounts written off, net of acquired reserves. Note (C)- Amounts accounted for under the acquisition method of accounting. |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation and Basis of Presentation | Consolidation and Basis of Presentation: Park-Ohio Holdings Corp. (“ParkOhio” “we” or the “Company”) is a diversified international company providing world-class customers with a supply chain management outsourcing service, capital equipment used on their production lines, and manufactured components used to assemble their products. The Company operates through three reportable segments: Supply Technologies, Assembly Components and Engineered Products. The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company does not have off-balance sheet arrangements or financings with unconsolidated entities or other persons. The Company leases certain real properties owned by related parties as described in Note 10. Transactions with related parties are not material to the Company’s financial position, results of operations or cash flows. |
Accounting Estimates | Accounting Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Actual results could differ from those estimates. |
Cash Equivalents | Cash Equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Inventories | Inventories: Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value. |
Property, Plant and Equipment | Property, Plant and Equipment: Property, plant and equipment is carried at cost. Additions and improvements that extend the lives of assets are capitalized, and expenditures for repairs and maintenance are charged to operations as incurred. Depreciation and amortization of fixed assets, including capital leases, is computed principally by the straight-line method based on the estimated useful lives of the assets ranging from five to 40 years for buildings, and one to 20 years for machinery and equipment (with the majority in the range of three to ten years). |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: We assess the recoverability of long-lived assets (excluding goodwill) and identifiable acquired intangible assets with finite useful lives whenever impairment indicators exist. When impairment indicators exist, we measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset to the expected net future undiscounted cash flows to be generated by that asset. The amount of impairment of identifiable intangible assets with finite useful lives, if any, to be recognized is measured based on projected discounted future cash flows. We measure the amount of impairment of other long-lived assets (excluding goodwill) as the amount by which the carrying value of the asset exceeds the fair value of the asset, which is generally determined, based on projected discounted future cash flows or appraised values. |
Goodwill and Indefinite-Lived Assets | Goodwill and Indefinite-Lived Assets: In accordance with Accounting Standards Codification (“ASC”) 350, “Intangibles — Goodwill and Other” (“ASC 350”), goodwill and indefinite life intangible assets are not amortized, but rather are tested annually for impairment as of October 1, or whenever events or changes in circumstances indicate there may be an indicator of impairment in accordance with ASC 350. Goodwill is tested for impairment at the reporting unit level and is based on the net assets for each reporting unit, including goodwill and intangible assets, compared to the fair value. Our reporting units have been identified at the component level. The Company completed its annual goodwill and indefinite-lived intangibles impairment testing as of October 1 of each year, noting no impairment. The Company uses an income approach, utilizing a discounted cash flow mode based on forecasted cash flows and weighted average cost of capital, and other valuation techniques to determine fair value. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments: Certain financial instruments are required to be recorded at fair value. The Company measures financial assets and liabilities at fair value in three levels of inputs. The three-tier fair value hierarchy, which prioritizes the inputs used in the valuation methodologies, is: Level 1 — Valuations based on quoted prices for identical assets and liabilities in active markets. Level 2 — Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data. Level 3 — Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment. Changes in assumptions or estimation methods could affect the fair value estimates; however, we do not believe any such changes would have a material impact on our financial condition, results of operations or cash flows. The carrying value of cash and cash equivalents, accounts receivable, accounts payable and borrowings under the Credit Agreement (as defined in Note 6) approximate fair value at December 31, 2016 and December 31, 2015 because of the short-term nature of these instruments. The fair values of long-term debt and pension plan assets are disclosed in Note 6 and Note 11, respectively. The Company has not changed its valuation techniques for measuring fair value during 2016, and there were no transfers between levels during the periods presented. |
Income Taxes | Income Taxes: The Company accounts for income taxes under the asset and liability method, whereby deferred tax assets and liabilities are determined based on temporary differences between the financial reporting and the tax bases of assets and liabilities and are measured using the current enacted tax rates. In determining these amounts, management determined the probability of realizing deferred tax assets, taking into consideration factors including historical operating results, cumulative earnings and losses, expectations of future earnings, taxable income and the extended period of time over which the postretirement benefits will be paid and accordingly records valuation allowances if, based on the weight of available evidence, it is more likely than not that some portion or all of our deferred tax assets will not be realized as required by ASC 740, “Income Taxes” (“ASC 740”). |
Share-Based Compensation | Share-Based Compensation: The Company follows the provisions of ASC 718, “Compensation — Stock Compensation” (“ASC 718”), which requires all share-based payments to employees, including grants of employee stock options, to be recognized in the income statement based on their grant date fair values. Compensation expense for awards with service conditions only that are subject to graded vesting is recognized on a straight-line basis over the term of the vesting period. Compensation expense of performance-based awards is recognized as an expense over the vesting periods of the awards using the accelerated attribution method once performance is deemed probable. Under the provisions of the Company’s 2015 Equity and Incentive Compensation Plan (“2015 Plan”), which is administered by the Compensation Committee of the Company’s Board of Directors, incentive stock options, non-statutory stock options, stock appreciation rights (“SARs”), restricted share units, performance shares or stock awards may be awarded to directors and all employees of the Company and its subsidiaries. The 2015 Plan replaces in its entirety the 1998 Long-Term Incentive Plan, as amended (“1998 Plan”), but shares that remained available under the 1998 Plan were added to the aggregate share limit under that 2015 Plan. Stock options will be exercisable in whole or in installments as may be determined provided that no options will be exercisable more than ten years from date of grant. The exercise price will be the fair value at the date of grant. The aggregate number of shares of the Company’s common stock that may be awarded under the 2015 Plan is 367,977. |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue, other than from long-term contracts, when title is transferred to the customer, typically upon shipment. Revenue from long-term contracts is accounted for under the percentage of completion method, and recognized on the basis of the percentage each contract’s cost to date bears to the total estimated contract cost. We follow this method since reasonably dependable estimates of revenue and costs of a contract can be made. Revenue earned on contracts in process that are in excess of billings is classified as unbilled contract revenues in Other current assets in the Consolidated Balance Sheet. Billings in excess of revenues earned on contracts in process are classified in Other accrued expenses in the Consolidated Balance Sheet and totaled $22.7 million and $16.8 million at December 31, 2016 and 2015, respectively. |
Cost of Sales | Cost of Sales: Cost of sales is primarily comprised of direct materials and supplies consumed in the manufacture of product; manufacturing labor, depreciation expense and direct overhead expense; and shipping and handling costs. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts: Accounts receivable are recorded at net realizable value. Accounts receivable are reduced by an allowance for amounts that may become uncollectable in the future. The Company’s policy is to identify and reserve for specific collectability concerns based on customers’ financial condition and payment history as well as a general reserve based on historical trends and other information. During 2016 and 2015, we sold approximately $81.6 million and $118.5 million, respectively, of accounts receivable to mitigate accounts receivable concentration risk and to provide additional financing capacity. In compliance with ASC 860, “Transfers and Servicing”, sales of accounts receivable are reflected as a reduction of accounts receivable in the Consolidated Balance Sheets and the proceeds are included in cash flows from operating activities in the Consolidated Statements of Cash flows. |
Concentration of Credit Risk | Concentration of Credit Risk: The Company sells its products to customers in diversified industries. The Company performs ongoing credit evaluations of its customers’ financial condition but does not require collateral to support customer receivables. The Company establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of specific customers, historical trends and other information. |
Environmental | Environmental: The Company expenses environmental costs related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible. Costs that extend the life of the related property or mitigate or prevent future environmental contamination are capitalized. The Company records a liability when environmental assessments and/or remedial efforts are probable and can be reasonably estimated. The estimated liability of the Company is not reduced for possible recoveries from insurance carriers and is undiscounted. |
Foreign Currency Translation | Foreign Currency Translation: The functional currency for a majority of subsidiaries outside the United States is the local currency. Financial statements for these subsidiaries are translated into U.S. dollars at year-end exchange rates for assets and liabilities and weighted-average exchange rates for revenues and expenses. The resulting translation adjustments are recorded in Accumulated other comprehensive income (loss) in shareholders’ equity. Gains and losses resulting from foreign currency translations, including intercompany transactions that are not considered permanent investments, are included in the Consolidated Statements of Income. |
Warranties | Warranties: Warranty liabilities are primarily associated with the Company’s industrial equipment business unit and the fluid routing solutions business. The Company estimates the amount of warranty claims on sold products that may be incurred based on current and historical data. The actual warranty expense could differ from the estimates made by the Company based on product performance. |
Earnings Per Share | Outstanding stock options with exercise prices greater than the average price of the common shares are anti-dilutive and are not included in the computation of diluted earnings per share. For the year ended December 31, 2016 and 2015, the anti-dilutive shares were insignificant. |
Accounting Pronouncements Adopted | Accounting Pronouncements Adopted In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-03, “Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs.” The ASU requires an entity to present debt issuance costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the debt issuance costs will continue to be reported as interest expense. The Company adopted this ASU during the first quarter of 2016 and applied this standard retrospectively to 2015. The new guidance impacted only the presentation of the Company's financial position and did not affect the Company's results of operations or cash flows. Refer to Note 6 for the impact on our consolidated balance sheet at December 31, 2015. In May 2015, the FASB issued ASU No. 2015-07, “Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent).” Under the new guidance, investments measured at net asset value (“NAV”), as a practical expedient for fair value, are excluded from the fair value hierarchy. Removing investments measured using the practical expedient from the fair value hierarchy is intended to eliminate the diversity in practice that currently exists with respect to the categorization of these investments. The new guidance was effective for the Company on January 1, 2016. The guidance impacted the presentation of certain pension related assets that use NAV as a practical expedient. See Note 11 for additional information. Recent Accounting Pronouncements Not Yet Adopted In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. generally accepted accounting principles and International Financial Reporting Standards. The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The ASU will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company is in the process of analyzing the impact of ASU 2014-09, and the related ASUs, across all its businesses. This includes reviewing current accounting policies and practices to identify potential differences that would result from applying the requirements under the new standard. The Company expects to adopt the new standard using the modified retrospective approach, under which the cumulative effect of initially applying the new guidance is recognized as an adjustment to the opening balance of retained earnings upon adoption effective January 1, 2018. We are still evaluating the impact and an estimation of the impact cannot be made at this time. In January 2016, the FASB issued ASU 2016-1, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in this update address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The Board also is addressing measurement of credit losses on financial assets in a separate project. This ASU is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is not permitted. The new guidance will be applied prospectively. The Company is currently evaluating the impact of adopting this guidance. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” The amendment establishes a comprehensive new lease accounting model. The new standard: (a) clarifies the definition of a lease; (b) requires a dual approach to lease classification similar to current lease classifications; and (c) causes lessees to recognize leases on the balance sheet as a lease liability with a corresponding right-of-use asset for leases with a lease-term of more than twelve months. This ASU is effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The new standard requires a modified retrospective transition for capital or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements, but it does not require transition accounting for leases that expire prior to the date of initial application. The Company is currently evaluating the impact of adopting this guidance. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The ASU simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The ASU is effective for fiscal years beginning with the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The objective of the ASU is to identify, evaluate, and improve areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to uses of the financial statements. The ASU is effective for fiscal years beginning with the first quarter of 2018, with early adoption permitted. The Company is currently evaluating the impact of adopting this guidance. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Commitments, Contingencies and Litigation Judgment | The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. Although the Company cannot precisely predict the amount of any liability that may ultimately arise with respect to any of these matters, the Company records provisions when it considers the liability probable and reasonably estimable. Our provisions are based on historical experience and legal advice, reviewed quarterly and adjusted according to developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments about potential actions by third parties, such as regulators, courts, and state and federal legislatures. Changes in the amounts of our loss provisions, which can be material, affect our financial condition. Due to the inherent uncertainties in the process undertaken to estimate potential losses, we are unable to estimate an additional range of loss in excess of our accruals. While it is reasonably possible that such excess liabilities, if they were to occur, could be material to operating results in any given quarter or year of their recognition, we do not believe that it is reasonably possible that such excess liabilities would have a material adverse effect on our long-term results of operations, liquidity or consolidated financial position. Our subsidiaries are involved in a number of contractual and warranty related disputes. At this time, we cannot reasonably determine the probability of a loss, and the timing and amount of loss, if any, cannot be reasonably estimated. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. |
Summary of Significant Accounting Policies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Major classes of inventories | Inventories are stated at the lower of first-in, first-out (“FIFO”) cost or market value.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, plant and equipment | The following table summarizes property, plant and equipment:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of depreciation expense | Information regarding depreciation expense of property, plant and equipment follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in product warranty liability | The following table presents the changes in the Company’s product warranty liability:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average number of shares used in computing earnings per share | The following table sets forth the weighted-average number of shares used in the computation of earnings per share:
|
Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results by business segment | Results by business segment were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of net sales by product line | The percentage of net sales by product line included in each segment was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Approximate percentage of net sales by geographic region | The Company’s approximate percentage of net sales by geographic region was as follows:
|
Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of estimated purchase price allocation | Below is the estimated purchase price allocation related to the acquisition of GH:
|
Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of goodwill | The changes in the carrying amount of goodwill by reportable segment:
|
Other Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of finite-lived intangible assets | Information regarding other intangible assets follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of indefinite-lived intangible assets | Information regarding other intangible assets follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortization of intangible assets | Amortization expense of other intangible assets follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization for the next five years | We estimate amortization expense for the five years subsequent to December 31, 2016 as follows:
|
Financing Arrangements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of long-term debt | Long-term debt consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of debt | The following table represents fair value information of the Company's senior notes due 2021 (the “Senior Notes”), classified as Level 1, at December 31, 2016 and 2015. The fair value was estimated using quoted market prices.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of long-term debt | Maturities of short-term and long-term debt, excluding capital leases, during each of the five years subsequent to December 31, 2016 are as follows:
|
Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from continuing operations before income tax expense | Income before income taxes consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income taxes | Income taxes consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of income tax expense | A reconciliation of income tax expense computed by applying the statutory federal income tax rate to income before income taxes as recorded is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant components of the Company's net deferred tax assets and liabilities | Significant components of the Company’s net deferred income tax assets and liabilities are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|
Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Stock Option Activity | A summary of stock option activity as of December 31, 2016 and changes during the year then ended is presented below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Restricted Share Activity | A summary of restricted share and performance share activity for the year ended December 31, 2016 is as follows:
(a) Included in the granted amount are 6,020 restricted share units. (b) During the second quarter of 2016, 40,000 of the performance-based restricted shares granted in 2015 fully vested based on achievement of the performance criteria. In accordance with the grant agreements, the remaining 80,000 shares became time-based, vesting over the remaining two years of the requisite service period. |
Lease Arrangements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of future minimum lease commitments | Future minimum lease commitments during each of the five years following December 31, 2016 and thereafter are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets recorded under capital leases | Assets recorded under capital leases are included in property, plant and equipment and consist of the following:
|
Pensions and Postretirement Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of change in defined benefit and postretirement benefit plans | The following tables set forth the changes in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2016 and 2015:
Amounts recognized in the consolidated balance sheets consist of:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Pension Plan Weighted-Average Asset Allocation | The pension plan weighted-average asset allocation at December 31, 2016 and 2015 and target allocation for 2017 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Hierarchy of Pension Plans Assets | The following table sets forth, by level within the fair value hierarchy, the pension plans assets:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assumptions Used in the valuation of pension and postretirement benefit obligations | The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31 and the measurement of the net periodic benefit cost in the following year.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Components of Net Periodic Benefit Cost |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Company's Expected Future Benefit Payments | Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rate | A one-percentage-point change in the assumed health care cost trend rate would have the following effects:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in accumulated comprehensive income (loss) | The components of and changes in accumulated other comprehensive income (loss) for the years ended December 31, 2016, 2015, and 2014 were as follows:
|
Selected Quarterly Financial Data (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data | Selected Quarterly Financial Data (Unaudited)
|
Summary of Significant Accounting Policies (Major Classes of Inventories) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Major Classes of Inventories | ||
Finished goods | $ 131.4 | $ 147.5 |
Work in process | 43.4 | 37.4 |
Raw materials and supplies | 65.8 | 64.1 |
Inventories, net | 240.6 | 249.0 |
Inventory reserves | (30.2) | (29.0) |
Consigned Inventory | $ 12.2 | $ 10.3 |
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Accounting Policies [Abstract] | ||
Land and land improvements | $ 11.3 | $ 8.5 |
Buildings | 74.9 | 65.3 |
Machinery and equipment | 316.1 | 304.6 |
Leased property under capital leases | 20.4 | 16.2 |
Total property, plant and equipment | 422.7 | 394.6 |
Less accumulated depreciation | 255.6 | 243.3 |
Property, plant and equipment, net | $ 167.1 | $ 151.3 |
Summary of Significant Accounting Policies (Depreciation Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | |||
Depreciation expense | $ 23.4 | $ 22.3 | $ 18.4 |
Summary of Significant Accounting Policies (Changes in Product Warranty Liability) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Changes in product warranty liability | |||
Balance at beginning of period | $ 6.1 | $ 6.9 | $ 5.4 |
Claims paid during the year | (3.7) | (4.7) | (2.9) |
Warranty expense | 2.0 | 4.0 | 4.0 |
Acquired warranty liabilities | 2.8 | 0.0 | 0.0 |
Other | (0.1) | (0.1) | 0.4 |
Balance at end of period | $ 7.1 | $ 6.1 | $ 6.9 |
Summary of Significant Accounting Policies (Weighted-Average Number of Shares Used in Computing Earnings Per Share (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Accounting Policies [Abstract] | |||
Weighted average basic shares outstanding (in shares) | 12,126,264 | 12,215,425 | 12,097,018 |
Plus dilutive impact of employee stock awards (in shares) | 148,188 | 167,526 | 279,058 |
Weighted average diluted shares outstanding (in shares) | 12,274,452 | 12,382,951 | 12,376,076 |
Segments (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016
segment
|
Dec. 31, 2016
Segment
|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of reportable segments | 3 | 3 | |||
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of assets | 68.00% | 71.00% | 72.00% |
Segments (Company’s approximate percentage of net sales by geographic region) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales | 100.00% | 100.00% | 100.00% |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales | 71.00% | 72.00% | 74.00% |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales | 8.00% | 8.00% | 6.00% |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales | 8.00% | 7.00% | 6.00% |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales | 6.00% | 6.00% | 7.00% |
Mexico | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales | 6.00% | 6.00% | 5.00% |
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales | 1.00% | 1.00% | 2.00% |
Acquisitions (Estimated Purchase Price Allocation) (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Business Acquisition [Line Items] | |||||
Goodwill | $ 86.6 | $ 86.6 | $ 82.0 | $ 89.5 | $ 60.4 |
Less: | |||||
Cash paid for acquisition, net of cash acquired | 23.4 | $ 0.0 | $ 72.7 | ||
GH Electrotermia S.A. | |||||
Business Acquisition [Line Items] | |||||
Net assets acquired | 24.7 | 24.7 | |||
Goodwill | 6.1 | 6.1 | |||
Total consideration | 30.8 | 30.8 | |||
Less: | |||||
Cash acquired | (6.3) | ||||
Contingent consideration | (1.1) | $ (1.1) | |||
Cash paid for acquisition, net of cash acquired | $ 23.4 |
Goodwill (Change in Goodwill) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill [Roll Forward] | |||
Goodwill, beginning of period | $ 82.0 | $ 89.5 | $ 60.4 |
Acquisitions | 6.1 | (6.2) | 28.9 |
Foreign currency translation | (1.5) | (1.3) | 0.2 |
Goodwill, end of period | 86.6 | 82.0 | 89.5 |
Supply Technologies | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning of period | 7.2 | 7.6 | 6.4 |
Acquisitions | 0.0 | 0.0 | 0.7 |
Foreign currency translation | (1.1) | (0.4) | 0.5 |
Goodwill, end of period | 6.1 | 7.2 | 7.6 |
Assembly Components | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning of period | 54.1 | 54.0 | 49.0 |
Acquisitions | 0.0 | 0.1 | 5.0 |
Foreign currency translation | 0.0 | 0.0 | 0.0 |
Goodwill, end of period | 54.1 | 54.1 | 54.0 |
Engineered Products | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning of period | 20.7 | 27.9 | 5.0 |
Acquisitions | 6.1 | (6.3) | 23.2 |
Foreign currency translation | (0.4) | (0.9) | (0.3) |
Goodwill, end of period | $ 26.4 | $ 20.7 | $ 27.9 |
Other Intangible Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Technology | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | $ 23.0 | $ 15.9 |
Technology | GH Electrotermia S.A. | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets | 7.5 | |
Indefinite-lived tradenames | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 22.4 | $ 18.7 |
Indefinite-lived tradenames | GH Electrotermia S.A. | ||
Acquired Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 4.4 |
Other Intangible Assets (Amortization Expense) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 6.1 | $ 6.4 | $ 4.8 |
Other Intangible Assets (Schedule of Amortization Expense for Subsequent Years) (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2017 | $ 6.6 |
2018 | 6.4 |
2019 | 6.0 |
2020 | 5.8 |
2021 | $ 5.8 |
Financing Arrangements (Fair Value of Debt) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Carrying amount | $ 475.0 | $ 468.1 |
Level 1 | Carrying amount | ||
Debt Instrument [Line Items] | ||
Carrying amount | 250.0 | 250.0 |
Level 1 | Fair value | ||
Debt Instrument [Line Items] | ||
Fair value | $ 257.5 | $ 263.4 |
Financing Arrangements (Schedule of Maturities of Long-term Debt) (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2017 | $ 24.7 |
2018 | 20.8 |
2019 | 138.4 |
2020 | 8.1 |
2021 | $ 263.1 |
Income Taxes (Income from Continuing Operations Before Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
United States | $ 15.4 | $ 44.0 | $ 53.1 |
Outside the United States | 25.6 | 26.0 | 18.7 |
Income before income taxes | $ 41.0 | $ 70.0 | $ 71.8 |
Income Taxes (Income Taxes) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current expense (benefit): | |||
Federal | $ (0.8) | $ 11.7 | $ 17.4 |
State | 0.2 | 0.7 | 0.8 |
Foreign | 6.6 | 6.0 | 6.2 |
Total | 6.0 | 18.4 | 24.4 |
Deferred expense (benefit): | |||
Federal | 1.6 | 2.7 | 1.0 |
State | 0.5 | 0.6 | (0.8) |
Foreign | 0.7 | (0.4) | 0.3 |
Total | 2.8 | 2.9 | 0.5 |
Income tax expense | $ 8.8 | $ 21.3 | $ 24.9 |
Income Taxes (Reconciliation Between Federal Statutory Tax Rate and Effective Tax Rates) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Tax at U.S. statutory rate | $ 14.3 | $ 24.5 | $ 25.1 |
Effect of state income taxes, net | 0.2 | 0.6 | 1.4 |
Effect of foreign operations | (2.1) | (1.6) | (0.9) |
Valuation allowance | 0.5 | (0.7) | (1.1) |
Uncertain tax positions | (4.0) | 0.1 | 0.3 |
Non-deductible items | 0.6 | 0.5 | 1.0 |
Non-deductible compensation | 0.8 | 1.2 | 0.8 |
Manufacturer's deduction | (0.5) | (1.1) | (1.4) |
Other, net | (1.0) | (2.2) | (0.3) |
Income tax expense | $ 8.8 | $ 21.3 | $ 24.9 |
Income Taxes (Significant Components of the Company's Net Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred income tax assets: | ||
Postretirement benefit obligation | $ 3.6 | $ 4.8 |
Inventory | 13.7 | 12.0 |
Net operating loss and credit carryforwards | 10.8 | 6.1 |
Warranty reserve | 2.1 | 1.9 |
Accrued litigation | 2.8 | 2.9 |
Compensation | 4.1 | 6.0 |
Other | 10.0 | 11.0 |
Total deferred income tax assets | 47.1 | 44.7 |
Deferred income tax liabilities: | ||
Depreciation and amortization | 14.9 | 15.2 |
Pension | 22.1 | 21.0 |
Intangible assets | 23.3 | 18.8 |
Other | 5.2 | 2.1 |
Total deferred income tax liabilities | 65.5 | 57.1 |
Net deferred income tax liabilities prior to valuation allowances | (18.4) | (12.4) |
Valuation allowances | (5.3) | (4.8) |
Net deferred income tax liability | $ (23.7) | $ (17.2) |
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of Beginning and Ending amount of Unrecognized tax benefits | |||
Unrecognized Tax Benefit, Beginning of Period | $ 6.3 | $ 6.5 | $ 5.9 |
Gross Increases to Tax Positions Related to Prior Years | 0.3 | 0.3 | 0.8 |
Gross Decreases to Tax Positions Related to Prior Years | 0.0 | (0.1) | (0.2) |
Expiration of Statute of Limitations | (3.7) | (0.4) | 0.0 |
Unrecognized Tax Benefit, End of Period | $ 2.9 | $ 6.3 | $ 6.5 |
Commitments, Contingencies and Litigation Judgment (Details) - TMK IPSCO - USD ($) $ in Millions |
1 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2016 |
Sep. 30, 2013 |
May 31, 2013 |
Dec. 31, 2016 |
|
Loss Contingencies [Line Items] | ||||
Damages awarded | $ 2.2 | $ 5.2 | ||
Additional damages sought | $ 3.8 | |||
Loss contingency accrual | $ 7.4 | |||
Direct Damages | ||||
Loss Contingencies [Line Items] | ||||
Direct damages sought | $ 10.0 |
Lease Arrangements - Schedule of Future Minimum Lease Commitments (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Capital Leases | |
2017 | $ 6.6 |
2018 | 4.3 |
2019 | 4.3 |
2020 | 3.9 |
2021 | 0.7 |
Thereafter | 0.0 |
Total minimum lease payments | 19.8 |
Amounts representing interest | (1.0) |
Present value of minimum lease payments | 18.8 |
Current maturities | (6.1) |
Long-term capital lease obligations | 12.7 |
Operating leases | |
2017 | 15.8 |
2018 | 11.9 |
2019 | 8.0 |
2020 | 5.4 |
2021 | 3.8 |
Thereafter | 17.6 |
Total minimum lease payments | $ 62.5 |
Lease Arrangements - Additional Information (Details) - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Aug. 13, 2015 |
|
Operating Leased Assets [Line Items] | ||||
Rental expense | $ 18.5 | $ 19.7 | $ 18.6 | |
Carrying amount | 475.0 | 468.1 | ||
Capital lease agreement | $ 50.0 | |||
Affiliated Entity | ||||
Operating Leased Assets [Line Items] | ||||
Rental expense | 2.4 | |||
Capital leases | ||||
Operating Leased Assets [Line Items] | ||||
Carrying amount | $ 18.8 | $ 17.7 |
Lease Arrangements - Schedule of Capital Leased Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Capital Leased Assets [Line Items] | ||
Machinery and equipment | $ 20.4 | $ 16.2 |
Machinery and Equipment | ||
Capital Leased Assets [Line Items] | ||
Machinery and equipment | 20.4 | 16.2 |
Less accumulated depreciation | 2.3 | 0.5 |
Capital lease assets, net | $ 18.1 | $ 15.7 |
Pensions and Postretirement Benefits (Summary of Assumptions Used in the valuation of pension and postretirement benefit obligations) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Pension Benefits | |||
Summary of assumptions used by the consulting actuary and the related cost information | |||
Discount rate | 3.91% | 4.13% | 3.82% |
Expected return on plan assets | 8.25% | 8.25% | 8.25% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Postretirement Benefits | |||
Summary of assumptions used by the consulting actuary and the related cost information | |||
Discount rate | 3.63% | 3.80% | 3.60% |
Medical health care benefits rate increase | 6.50% | 6.75% | 7.00% |
Medical drug benefits rate increase | 6.50% | 6.75% | 7.00% |
Ultimate health care cost trend rate | 5.00% | 5.00% | 5.00% |
Pensions and Postretirement Benefits (Summary of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rate) (Details) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Summary of One-Percentage-Point Change in the Assumed Healthcare Cost Trend Rate | |
Effect on total of service and interest cost components in 2016 increase | $ 0.0 |
Effect on total of service and interest cost components in 2016 decrease | 0.0 |
Effect on postretirement benefit obligation as of December 31, 2016 increase | 0.7 |
Effect on postretirement benefit obligation as of December 31, 2016 decrease | $ (0.6) |
Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions |
Mar. 01, 2017 |
Jan. 31, 2017 |
---|---|---|
Subsequent Event [Line Items] | ||
Dividend per common share (in dollars per share) | $ 0.125 | |
Dividend | $ 1.6 |
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Sep. 30, 2013 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||
Net sales | $ 306.8 | $ 312.7 | $ 329.4 | $ 328.0 | $ 347.4 | $ 364.4 | $ 377.3 | $ 374.7 | $ 1,276.9 | $ 1,463.8 | $ 1,378.7 | ||
Gross profit | 46.6 | 54.3 | 54.3 | 47.8 | 54.1 | 62.3 | 60.4 | 58.4 | 203.0 | 235.2 | 234.5 | ||
Net income | 6.7 | 13.8 | 9.0 | 2.7 | 11.8 | 13.2 | 12.6 | 11.1 | 32.2 | 48.7 | 46.9 | ||
Net income attributable to noncontrolling interest | (0.2) | (0.3) | 0.0 | 0.0 | (0.1) | 0.0 | (0.2) | (0.3) | (0.5) | (0.6) | (1.3) | ||
Net income attributable to ParkOhio common shareholders | $ 6.5 | $ 13.5 | $ 9.0 | $ 2.7 | $ 11.7 | $ 13.2 | $ 12.4 | $ 10.8 | $ 31.7 | $ 48.1 | $ 45.6 | ||
Earnings per common share attributable to ParkOhio common shareholders: | |||||||||||||
Basic (in dollars per share) | $ 0.53 | $ 1.12 | $ 0.74 | $ 0.22 | $ 0.96 | $ 1.07 | $ 1.02 | $ 0.89 | $ 2.62 | $ 3.94 | $ 3.77 | ||
Diluted (in dollars per share) | 0.53 | 1.10 | 0.73 | 0.22 | 0.95 | 1.06 | 1.00 | 0.87 | 2.58 | 3.88 | 3.68 | ||
Cash dividends per common share (in dollars per share) | $ 0.125000 | $ 0.125000 | $ 0.125000 | $ 0.125 | $ 0.125000 | $ 0.125000 | $ 0.125000 | $ 0.125 | $ 0.5 | $ 0.5 | $ 0.375 | ||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Asset impairment charge | $ 4.0 | $ 4.0 | $ 0.0 | $ 0.0 | |||||||||
TMK IPSCO | |||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||
Damages awarded | $ 2.2 | $ 5.2 |
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Trade receivable allowances | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | $ 3.3 | $ 4.1 | $ 3.7 |
Charged to Costs and Expenses | 1.5 | 0.4 | 0.3 |
Deductions and Other | (0.8) | (1.2) | 0.1 |
Balance at End of Period | 4.0 | 3.3 | 4.1 |
Inventory obsolescence reserve | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | 29.0 | 29.9 | 28.4 |
Charged to Costs and Expenses | 6.0 | 4.2 | 8.4 |
Deductions and Other | (4.8) | (5.1) | (6.9) |
Balance at End of Period | 30.2 | 29.0 | 29.9 |
Tax valuation allowances | |||
Valuation and Qualifying Accounts and Reserves | |||
Balance at Beginning of Period | 4.8 | 7.1 | 2.6 |
Charged to Costs and Expenses | 0.5 | (0.7) | (1.1) |
Deductions and Other | 0.0 | (1.6) | 5.6 |
Balance at End of Period | $ 5.3 | $ 4.8 | $ 7.1 |
/N@6,LT#$-J;'1!WF
MT&.,C@WI!?:DH2<-/,7LF'I,?.XI-BR:'I,XT00,M)*@E (3GOVQ$UD#BRB(
M%N=_[ REQ8SB@%75@T1I'NU&IAWAG35P9TUGKIV=3? "$5P@ D?#\KCK,>E9
MC+0(6*6L)T,('#$2O;,@;SZ6^@=0;CB>5J5 .)S@+(@50^BI
M!85Y70%BIX@G3B*E,$AXWI=!;C"8^A7@?N+<;T'._AH>S7H(Y8:#^5(9$(Y0
M# 8Y8F=U/X1RP\'LJP#]$J=?A?A0E.AED!L,9DT%:),6O$)C4*&1TBGYG&%F
M5( :=<@S3V12"Q6(F!*D"R*^0W*Q=,$I?XU<-JT]XH 0C-M "STWF.X"^@Q8P\M9QHJY'.:U1#*
M#0>W"SUF^*'!]*/1.K[IA\;]0H^9?^CA 8A&W8+XWL 1"'D"QNU"CQF":#0%
M\4H#@SN!&3,%L: 1TL!@>C=CAAL#>\RL!@ZC9C9AL6%(](!W.V09S-Z\E(
MTB,Z/QZ;]1#,#<@SY@6"50@B"TH\%-)7KY%3"R_/&$RA!NE:KG4,H+V8WTOK
M(90;#J8]@\0OUSI&$MI,#!+NAU!N.)CV#*(]WF ,&!](%AY"N>%@:C1(2HL;
M1E(:<96\&0"YP6#:,X#VM*@ >6!O>7R3_^'CM/\0II:M)2=T_F5C_RM$!U[*YL*/4.,_V&PHJ%PX
M7ONS&<=L-!QVTP]B\S?._P%02P,$% @ AWUI2JKA&%2U 0 T@, !D
M !X;"]W;W)K E51!U
M[PHQDX8S:3"3]H+603"22Q1U*+0C#AGHD $.&<\A$X3N'/(GU DWXI"%#EG@
MD) EMB,6H6H&8I?S%%-J(3
MLY@B.V4' T12$W7'8M0L0,T2G8W% -F()LQB@.R4)@R)''5MB1,K0)DCVA*+
MB; 139C#1+@I31@2.2(M.8R- ]@XXO9P& 87T80Y#(.;TH0A$;47=Y@8!XAQ
M1%OB, PNH@ES& 8WX6'UO0N/@X4>R\X.8^,0$41OXC 1+J(3<\0)+7IN[!]C
M]:+10QWO$)8ZA45@$"T*2XESV#3F(#8E3F+3"4>Q]Q^JP5ELJD8C)PYCTTFG
ML6EX'.M/E%S]$*C]/=J?6?FZ/52SIZ*NBWWWRY^7HJCSQE[ZJ;EDFSQ;7S[L
M\I>Z?=OV7^7Y9V#G#W5Q7)Y_XY9&ULC53;CILP$/T5
MQ ?$W"\1('535:W42M%6W3X[, 2T!E/;"=N_KVU81(B[R@OVC,\5?A1-Y:G @9NQ])\(3;_;<]Z8(SMB*>.?%6^\]YSRY3-DY$$TQAS&&+V(V
M
]"$^\.W'?FS(X8ROBG4_>>N^MX/
M,W8+0C/F/&'X"K-;$,RK+R'X5H@S_X_.M^G[S0SWD;Y?1S\
]"$^\.W+?FS(X8ROBG4_>>N^U2/E]QJY!:,:<
M)@Q?878+@GGU)03?"G'B_]'Y-CW=S#"-]'1-3^ZW!?:; OLHL%^7F"8?2MS"
M?"R2K7JJP31QFBPI<>CB)*^\R\ ^\/@F_^#3M'\7II&=)1=T_F5C_VM$!SZ5
MY,:/4.L_V&(HJ%TX?O)G,XW99#CLYQ_$EF]<_ 502P,$% @ AWUI2G;"
M")'; P G1, !D !X;"]W;W)K
E2M]!>U%
M*3E7H'/T-WJ::OW63 :%4IGM3N^%FSAG*-Z-CPF>7K3L/U!+ P04 " "'
M?6E*95L,FG0" V" &0 'AL+W=OI4HY8B)%U'4-M(12B=7CQ KF:E19FJ0F2DR4ZT8@:-@]JDF0VWW1XB5
MT,PH--.$^J%Z_IE^:I[6K?\#JG20]Z]VW1CE;@QU5;Z)
F+F:$B)8A#A@*E*D>WA'Y(8LD$9SI,' '45.&05<
M)FXXU?$F=.7E.#W=<<:8J D#&L!H=K2R=%"AZ8%A.KPA&4@T$QS-"/+(*(W
M"@3"C,B02LZ(K-0T:0&>FC;1S%*@33*Y\4M]1!DKDE:OP&K-L9HL!0IA'6J\
M$BB$NWM5
9KD]+DPRF.6Q<6_)4W9>6X2\W/@)=GM>35@+V:'>$=?*?]U>"[$D]U&V209
MSJVWA/"L3 9!<+D4=24?:?&>RZ;N6A375CI
M#B>=*1K#OG)=_0-02P,$% @ AWUI2J?[T3.A P UQ !D !X;"]W
M;W)K
VI:(
M/T^4\6$3HO!MXKDYU\I,@*KLR9E^I^I'OQ-Z!":68]/23C:\"P0];<(/:+U%
MV 18Q,^G+6#TPI>\Y?S.#+<1-"HX@R>E"&@NCF2K>4,<.D=?P>2<,IIPF<
M]]_8/]GB=3%[(NF6LU_-4=6;L B#(SV1"U//?/A,QX+2,!BK_TJOE&FX4:)S
M'#B3]AL<+E+Q=F314EKRZMJFL^W@5K)B#/,'Q&- / 6@Y)\!> S -P' *;.E
M?B2*5*7@0R#
8& E@, 3Z$L,@=42T& 8)2E88+1 9(L5(
M3(P$,!A-F, PR(@>4F$8%-J&>=$^0!'!K<+$* 2#O]_N18-6*QW=_2C,C4+<
M4 N#N5$1W"C,C4(-GU_O>M'TYD<1CW(0/-0UPO"H"'@4AD=-@0>**%
CWLN/%HFH,J Q/!K 8RD3F @=L;'2F B-VJH@6B"R1,72
M&!L-L+%$)=$8!AVQ3]+$ TO45@71AB*IJ6@Q,1K 8(FBIS$,VD9$BV'0H*T*
MHP4BZMH:3(P!,%BB;AH,@XEXZF
O$-=G^^#H-H=
M;)Y6?G&VI^8O+T69IW7SLWP-JG-ITWW7*,\"&891D*?'D[=>==>^E.M5\59G
MQY/]4BZJMSQ/RW\W-BLN#Y[P/BY\/;X>ZO9"L%Z=TU?[IZV_G;^4S:_@VLO^
MF-M3=2Q.B]*^/'B/XGYKXK9!I_CK:"_5Z/NBG
*(4\Q&GP:8Y-GBQ;U)-C_31&JQ:?W_MH#$2-ZD0V9WDSWV8E
M4R.8A1KMRVG!JOF6FQF9DTR-.-XJHDTYK4 UWV[SF(0B5TAB-FNT):>;',VI
MRU9E3C(U@KFL4=U(4W40W4A5K'*M"T:O1NAET7*[?+PMV0Z2Z!-+AZ&KT8M.
M%E ),W+'N0*8.P'+U Z&KD:O31U;&H-!:3@HV9;&<+K1Z
D1G,5H/82BL\ UYGL@@T
M?$\]$X$&$]: FM6UQS&.,QG$15IZ&5"SLDT;$&GGG<=L-("-;%=A /7 "1%4
MN8ZK,!L-9R-WTVLF1U&LF@
_U
MV?_@1UXH>!N)XEB)HM&_WNK02%'V7E0H9?;6??-*?T^]_W
(#(.@2T77YB&3V7Q:BY-7=].[S]I51.XB5?U5.ZB+K?]3
MY6G4Z'$^)NDT.+:.>LRBP] S#!D0@?(^4%!$L:"6.;TD6-H(%EY"'FQ(FN @
M&,R3:7MVD><8.XB@@T@[B"X<3(Q"=9A48RJ-"4<1)HDA26R34*,2"X1QS$<"
M21+@P)B1A8V)$TUW[F>SN^ST^E?!&7KUPW%/N>[OX[/_-2A?>5*(VM*+OA
MU]N>.BDJG4654N7OX[&HA^-%Y[\NPPNH7D"G!73L910:*O^