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March 31, 2015 | December 31, 2014 | ||||||
Inventories, net: | |||||||
Manufacturing supplies | $40.6 | $38.5 | |||||
Raw materials | 51.3 | 56.8 | |||||
Work in process | 93.4 | 110.3 | |||||
Finished products | 94.8 | 91.1 | |||||
Subtotal | 280.1 | 296.7 | |||||
Allowance for surplus and obsolete inventory | (2.9 | ) | (2.9 | ) | |||
Total Inventories, net | $277.2 | $293.8 |
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March 31, 2015 | December 31, 2014 | ||||||
Property, Plant and Equipment, net: | |||||||
Land and buildings | $359.3 | $292.4 | |||||
Machinery and equipment | 1,336.4 | 1,183.0 | |||||
Construction-in-progress | 72.1 | 288.3 | |||||
Subtotal | 1,767.8 | 1,763.7 | |||||
Less allowances for depreciation | (1,002.4 | ) | (991.8 | ) | |||
Property, Plant and Equipment, net | $765.4 | $771.9 |
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March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||||||||
Customer relationships | $6.8 | $2.5 | $4.3 | $6.8 | $2.4 | $4.4 | |||||||||||||||||
Technology use | 9.0 | 4.2 | 4.8 | 9.0 | 4.1 | 4.9 | |||||||||||||||||
Capitalized software | 55.0 | 31.1 | 23.9 | 50.6 | 29.6 | 21.0 | |||||||||||||||||
Total Intangible Assets | $70.8 | $37.8 | $33.0 | $66.4 | $36.1 | $30.3 |
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March 31, 2015 | December 31, 2014 | ||||||
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.02% as of March 31, 2015) | $12.2 | $12.2 | |||||
Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.02% as of March 31, 2015) | 9.5 | 9.5 | |||||
Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033 (0.02% as of March 31, 2015) | 8.5 | 8.5 | |||||
Revolving credit facility, due 2019 (LIBOR plus applicable spread) | 165.0 | 155.0 | |||||
Total Long-Term Debt | $195.2 | $185.2 |
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Foreign Currency Translation Adjustments | Pension and Postretirement Liability Adjustments | Total | |||||||||
Balance at December 31, 2014 | ($4.8 | ) | ($292.5 | ) | ($297.3 | ) | |||||
Other comprehensive (loss) income before reclassifications, before income tax | (0.9 | ) | 0.8 | (0.1 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | 9.1 | 9.1 | ||||||||
Income tax benefit | — | (3.4 | ) | (3.4 | ) | ||||||
Net current period other comprehensive (loss) income, net of income tax | (0.9 | ) | 6.5 | 5.6 | |||||||
Balance at March 31, 2015 | ($5.7 | ) | ($286.0 | ) | ($291.7 | ) |
Foreign Currency Translation Adjustments | Pension and Postretirement Liability Adjustments | Total | |||||||||
Balance at December 31, 2013 | ($0.4 | ) | $— | ($0.4 | ) | ||||||
Other comprehensive loss before reclassifications, before income tax | (0.2 | ) | — | (0.2 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | — | — | ||||||||
Income tax benefit | — | — | — | ||||||||
Net current period other comprehensive loss, net of income tax | (0.2 | ) | — | (0.2 | ) | ||||||
Balance at March 31, 2014 | ($0.6 | ) | $— | ($0.6 | ) |
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Total | Additional Paid-in Capital | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Loss | |||||||||||||||
Balance as of December 31, 2014 | $748.1 | $1,050.7 | $29.4 | ($34.7 | ) | ($297.3 | ) | ||||||||||||
Net income | 6.9 | — | 6.9 | — | — | ||||||||||||||
Pension and postretirement adjustment, net of tax | 6.5 | — | — | — | 6.5 | ||||||||||||||
Foreign currency translation adjustments | (0.9 | ) | — | — | — | (0.9 | ) | ||||||||||||
Stock-based compensation expense | 2.0 | 2.0 | — | — | — | ||||||||||||||
Dividends – $0.14 per share | (6.3 | ) | — | (6.3 | ) | — | — | ||||||||||||
Net transfer to Parent and subsidiaries | (0.5 | ) | (0.5 | ) | — | — | — | ||||||||||||
Stock option exercise activity | 1.1 | 1.1 | — | — | — | ||||||||||||||
Purchase of treasury shares | (2.9 | ) | — | — | (2.9 | ) | — | ||||||||||||
Issuance of treasury shares | — | (3.9 | ) | — | 3.9 | — | |||||||||||||
Shares surrendered for taxes | (1.8 | ) | — | — | (1.8 | ) | — | ||||||||||||
Balance as of March 31, 2015 | $752.2 | $1,049.4 | $30.0 | ($35.5 | ) | ($291.7 | ) |
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Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||
Components of net periodic benefit cost: | Pension | Postretirement | Pension | Postretirement | |||||||||||
Service cost | $4.2 | $0.4 | $— | $— | |||||||||||
Interest cost | 13.0 | 2.4 | — | — | |||||||||||
Expected return on plan assets | (18.8 | ) | (1.7 | ) | — | — | |||||||||
Amortization of prior service cost | 0.1 | 0.3 | — | — | |||||||||||
Amortization of net actuarial loss | 8.6 | 0.1 | — | — | |||||||||||
Allocated benefit cost from Timken | — | — | 4.4 | 1.7 | |||||||||||
Net Periodic Benefit Cost | $7.1 | $1.5 | $4.4 | $1.7 |
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Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net Sales: | |||||||
Industrial & Mobile | $233.5 | $231.8 | |||||
Energy & Distribution | 155.2 | 157.7 | |||||
$388.7 | $389.5 | ||||||
Segment EBIT: | |||||||
Industrial & Mobile | $4.5 | $27.3 | |||||
Energy & Distribution | 4.6 | 28.2 | |||||
Total Segment EBIT | $9.1 | $55.5 | |||||
Unallocated (1) | 2.1 | (4.7 | ) | ||||
Interest expense | 0.1 | — | |||||
Income Before Income Taxes | $11.1 | $50.8 |
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Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Provision for income taxes | $4.2 | $17.2 | |||||
Effective tax rate | 37.8 | % | 33.9 | % |
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Balance at December 31, 2014 | $1.3 | ||
Expenses | — | ||
Payments | (0.1 | ) | |
Balance at March 31, 2015 | $1.2 |
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March 31, 2015 | December 31, 2014 | ||||||
Inventories, net: | |||||||
Manufacturing supplies | $40.6 | $38.5 | |||||
Raw materials | 51.3 | 56.8 | |||||
Work in process | 93.4 | 110.3 | |||||
Finished products | 94.8 | 91.1 | |||||
Subtotal | 280.1 | 296.7 | |||||
Allowance for surplus and obsolete inventory | (2.9 | ) | (2.9 | ) | |||
Total Inventories, net | $277.2 | $293.8 |
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March 31, 2015 | December 31, 2014 | ||||||
Property, Plant and Equipment, net: | |||||||
Land and buildings | $359.3 | $292.4 | |||||
Machinery and equipment | 1,336.4 | 1,183.0 | |||||
Construction-in-progress | 72.1 | 288.3 | |||||
Subtotal | 1,767.8 | 1,763.7 | |||||
Less allowances for depreciation | (1,002.4 | ) | (991.8 | ) | |||
Property, Plant and Equipment, net | $765.4 | $771.9 |
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March 31, 2015 | December 31, 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Intangible Assets Subject to Amortization: | |||||||||||||||||||||||
Customer relationships | $6.8 | $2.5 | $4.3 | $6.8 | $2.4 | $4.4 | |||||||||||||||||
Technology use | 9.0 | 4.2 | 4.8 | 9.0 | 4.1 | 4.9 | |||||||||||||||||
Capitalized software | 55.0 | 31.1 | 23.9 | 50.6 | 29.6 | 21.0 | |||||||||||||||||
Total Intangible Assets | $70.8 | $37.8 | $33.0 | $66.4 | $36.1 | $30.3 |
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March 31, 2015 | December 31, 2014 | ||||||
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.02% as of March 31, 2015) | $12.2 | $12.2 | |||||
Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.02% as of March 31, 2015) | 9.5 | 9.5 | |||||
Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033 (0.02% as of March 31, 2015) | 8.5 | 8.5 | |||||
Revolving credit facility, due 2019 (LIBOR plus applicable spread) | 165.0 | 155.0 | |||||
Total Long-Term Debt | $195.2 | $185.2 |
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Foreign Currency Translation Adjustments | Pension and Postretirement Liability Adjustments | Total | |||||||||
Balance at December 31, 2014 | ($4.8 | ) | ($292.5 | ) | ($297.3 | ) | |||||
Other comprehensive (loss) income before reclassifications, before income tax | (0.9 | ) | 0.8 | (0.1 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | 9.1 | 9.1 | ||||||||
Income tax benefit | — | (3.4 | ) | (3.4 | ) | ||||||
Net current period other comprehensive (loss) income, net of income tax | (0.9 | ) | 6.5 | 5.6 | |||||||
Balance at March 31, 2015 | ($5.7 | ) | ($286.0 | ) | ($291.7 | ) |
Foreign Currency Translation Adjustments | Pension and Postretirement Liability Adjustments | Total | |||||||||
Balance at December 31, 2013 | ($0.4 | ) | $— | ($0.4 | ) | ||||||
Other comprehensive loss before reclassifications, before income tax | (0.2 | ) | — | (0.2 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | — | — | ||||||||
Income tax benefit | — | — | — | ||||||||
Net current period other comprehensive loss, net of income tax | (0.2 | ) | — | (0.2 | ) | ||||||
Balance at March 31, 2014 | ($0.6 | ) | $— | ($0.6 | ) |
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Total | Additional Paid-in Capital | Retained Earnings | Treasury Shares | Accumulated Other Comprehensive Loss | |||||||||||||||
Balance as of December 31, 2014 | $748.1 | $1,050.7 | $29.4 | ($34.7 | ) | ($297.3 | ) | ||||||||||||
Net income | 6.9 | — | 6.9 | — | — | ||||||||||||||
Pension and postretirement adjustment, net of tax | 6.5 | — | — | — | 6.5 | ||||||||||||||
Foreign currency translation adjustments | (0.9 | ) | — | — | — | (0.9 | ) | ||||||||||||
Stock-based compensation expense | 2.0 | 2.0 | — | — | — | ||||||||||||||
Dividends – $0.14 per share | (6.3 | ) | — | (6.3 | ) | — | — | ||||||||||||
Net transfer to Parent and subsidiaries | (0.5 | ) | (0.5 | ) | — | — | — | ||||||||||||
Stock option exercise activity | 1.1 | 1.1 | — | — | — | ||||||||||||||
Purchase of treasury shares | (2.9 | ) | — | — | (2.9 | ) | — | ||||||||||||
Issuance of treasury shares | — | (3.9 | ) | — | 3.9 | — | |||||||||||||
Shares surrendered for taxes | (1.8 | ) | — | — | (1.8 | ) | — | ||||||||||||
Balance as of March 31, 2015 | $752.2 | $1,049.4 | $30.0 | ($35.5 | ) | ($291.7 | ) |
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Three Months Ended March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||
Components of net periodic benefit cost: | Pension | Postretirement | Pension | Postretirement | |||||||||||
Service cost | $4.2 | $0.4 | $— | $— | |||||||||||
Interest cost | 13.0 | 2.4 | — | — | |||||||||||
Expected return on plan assets | (18.8 | ) | (1.7 | ) | — | — | |||||||||
Amortization of prior service cost | 0.1 | 0.3 | — | — | |||||||||||
Amortization of net actuarial loss | 8.6 | 0.1 | — | — | |||||||||||
Allocated benefit cost from Timken | — | — | 4.4 | 1.7 | |||||||||||
Net Periodic Benefit Cost | $7.1 | $1.5 | $4.4 | $1.7 |
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Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Net Sales: | |||||||
Industrial & Mobile | $233.5 | $231.8 | |||||
Energy & Distribution | 155.2 | 157.7 | |||||
$388.7 | $389.5 | ||||||
Segment EBIT: | |||||||
Industrial & Mobile | $4.5 | $27.3 | |||||
Energy & Distribution | 4.6 | 28.2 | |||||
Total Segment EBIT | $9.1 | $55.5 | |||||
Unallocated (1) | 2.1 | (4.7 | ) | ||||
Interest expense | 0.1 | — | |||||
Income Before Income Taxes | $11.1 | $50.8 |
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Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Provision for income taxes | $4.2 | $17.2 | |||||
Effective tax rate | 37.8 | % | 33.9 | % |
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Balance at December 31, 2014 | $1.3 | ||
Expenses | — | ||
Payments | (0.1 | ) | |
Balance at March 31, 2015 | $1.2 |
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