Fair Value

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value

Note 18 - Fair Value

Fair value is defined as the price that would be expected to be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The FASB provides accounting rules that classify the inputs used to measure fair value into the following hierarchy:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2 – Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability.

Level 3 – Unobservable inputs for the asset or liability.

The following tables present the fair value hierarchy for those financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016:

	June 30, 2017
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	429.0	$	425.3	$	3.7	$	—
Cash and cash equivalents measured at net asset value	16.1		—		—		—
Restricted cash	2.8		2.8		—		—
Short-term investments	14.5		—		14.5		—
Short-term investments measured at net asset value	4.8		—		—		—
Foreign currency hedges	1.2		—		1.2		—
Total Assets	$	468.4	$	428.1	$	19.4	$	—
Liabilities:
Foreign currency hedges	$	5.7	$	—	$	5.7	$	—
Total Liabilities	$	5.7	$	—	$	5.7	$	—

	December 31, 2016
	Total		Level 1		Level 2		Level 3
Assets:
Cash and cash equivalents	$	129.6	$	125.0	$	4.6	$	—
Cash and cash equivalents measured net asset value	19.2		—		—		—
Restricted cash	2.7		2.7		—		—
Short-term investments	9.4		—		9.4		—
Short-term investments measured at net asset value	2.3		—		—		—
Foreign currency hedges	9.9		—		9.9		—
Total Assets	$	173.1	$	127.7	$	23.9	$	—
Liabilities:
Foreign currency hedges	$	2.1	$	—	$	2.1	$	—
Total Liabilities	$	2.1	$	—	$	2.1	$	—

Cash and cash equivalents are highly liquid investments with maturities of three months or less when purchased and are valued at the redemption value. Short-term investments are investments with maturities between four months and one year and generally are valued at amortized cost, which approximates fair value. A portion of the cash and cash equivalents and short-term investments are valued based on net asset value. The Company uses publicly available foreign currency forward and spot rates to measure the fair value of its foreign currency forward contracts.

The Company does not believe it has significant concentrations of risk associated with the counterparties to its financial instruments.

2017

No assets were measured at fair value on a nonrecurring basis for the six months ended June 30, 2017.

2016

The following table presents those assets measured at fair value on a nonrecurring basis for the six months ended June 30, 2016 using Level 3 inputs:

	Carrying Value		Fair Value Adjustment			Fair Value
Long-lived assets held for sale:
Land	$	0.2	$	(0.2	)	$	—
Total long-lived assets held for sale	$	0.2	$	(0.2	)	$	—
Long-lived assets held and used:
Altavista bearing plant	$	5.7	$	(2.4	)	$	3.3
Total long-lived assets held and used	$	5.7	$	(2.4	)	$	3.3

Assets held for sale of $0.2 million were written down to their fair value of zero during the first quarter of 2016, resulting in an impairment charge of $0.2 million. The fair value of these assets was based on the price that the Company expected to receive when it disposed of these assets.

On March 17, 2016, the Company announced the closure of its Altavista bearing plant. The Company completed the closure of this manufacturing facility on March 31, 2017. The Altavista bearing plant, with a carrying value of $5.7 million, was written down to its fair value of $3.3 million during the first quarter of 2016, resulting in an impairment charge of $2.4 million. The fair value for the plant was based on the price that the Company expected to receive from the sale of this facility. During the second quarter of 2017, this facility was reclassified to assets held for sale and included in other current assets on the Consolidated Balance Sheet. On July 14, 2017, this facility was sold for a pretax gain of approximately $1.6 million.

Financial Instruments:

The Company’s financial instruments consist primarily of cash and cash equivalents, restricted cash, short-term investments, accounts receivable net, accounts payable, trade, short-term borrowings and long-term debt. Due to their short-term nature, the carrying value of cash and cash equivalents, restricted cash, short-term investments, accounts receivable net, accounts payable, trade and short-term borrowings are a reasonable estimate of their fair value. The fair value of the Company’s long-term fixed-rate debt, based on quoted market prices, was $541.7 million and $532.2 million at June 30, 2017 and December 31, 2016, respectively. The carrying value of this debt was $507.6 million and $507.3 million at June 30, 2017 and December 31, 2016, respectively. The fair value of long-term fixed-rate debt was measured using Level 2 inputs.