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September 30, 2015 | December 31, 2014 | ||||||
Inventories, net: | |||||||
Manufacturing supplies | $44.7 | $38.5 | |||||
Raw materials | 25.1 | 56.8 | |||||
Work in process | 62.8 | 110.3 | |||||
Finished products | 73.0 | 91.1 | |||||
Subtotal | 205.6 | 296.7 | |||||
Allowance for surplus and obsolete inventory | (9.6 | ) | (2.9 | ) | |||
Total Inventories, net | $196.0 | $293.8 |
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September 30, 2015 | December 31, 2014 | ||||||
Property, Plant and Equipment, net: | |||||||
Land and buildings | $357.8 | $292.4 | |||||
Machinery and equipment | 1,351.6 | 1,183.0 | |||||
Construction in progress | 78.1 | 288.3 | |||||
Subtotal | 1,787.5 | 1,763.7 | |||||
Less allowances for depreciation | (1,023.2 | ) | (991.8 | ) | |||
Property, Plant and Equipment, net | $764.3 | $771.9 |
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September 30, 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 | $3.2 | $3.6 | $6.8 | $2.4 | $4.4 | |||||||||||||||||
Technology use | 9.0 | 4.6 | 4.4 | 9.0 | 4.1 | 4.9 | |||||||||||||||||
Capitalized software | 54.3 | 33.2 | 21.1 | 50.6 | 29.6 | 21.0 | |||||||||||||||||
Total Intangible Assets | $70.1 | $41.0 | $29.1 | $66.4 | $36.1 | $30.3 |
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September 30, 2015 | December 31, 2014 | ||||||
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.01% as of September 30, 2015) | $12.2 | $12.2 | |||||
Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.01% as of September 30, 2015) | 9.5 | 9.5 | |||||
Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033 (0.01% as of September 30, 2015) | 8.5 | 8.5 | |||||
Revolving credit facility, due 2019 (LIBOR plus applicable spread) | 175.0 | 155.0 | |||||
Total Long-Term Debt | $205.2 | $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 | (1.1 | ) | 0.5 | (0.6 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | 26.7 | 26.7 | ||||||||
Income taxes | — | (10.0 | ) | (10.0 | ) | ||||||
Net current period other comprehensive (loss) income, net of income tax | (1.1 | ) | 17.2 | 16.1 | |||||||
Balance at September 30, 2015 | ($5.9 | ) | ($275.3 | ) | ($281.2 | ) |
Foreign Currency Translation Adjustments | Pension and Postretirement Liability Adjustments | Total | |||||||||
Balance at December 31, 2013 | ($0.4 | ) | $— | ($0.4 | ) | ||||||
Net transfer from Timken | (3.2 | ) | (233.9 | ) | (237.1 | ) | |||||
Other comprehensive (loss) income before reclassifications, before income tax | (0.2 | ) | 0.7 | 0.5 | |||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | 12.0 | 12.0 | ||||||||
Income taxes | — | (4.3 | ) | (4.3 | ) | ||||||
Net current period other comprehensive (loss) income, net of income tax | (0.2 | ) | 8.4 | 8.2 | |||||||
Balance at September 30, 2014 | ($3.8 | ) | ($225.5 | ) | ($229.3 | ) |
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Total | Additional Paid-in Capital | Retained (Deficit) 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 loss | (48.2 | ) | — | (48.2 | ) | — | — | ||||||||||||
Pension and postretirement adjustment, net of tax | 17.2 | — | — | — | 17.2 | ||||||||||||||
Foreign currency translation adjustments | (1.1 | ) | — | — | — | (1.1 | ) | ||||||||||||
Stock-based compensation expense | 6.0 | 6.0 | — | — | — | ||||||||||||||
Dividends – $0.42 per share | (18.7 | ) | — | (18.7 | ) | — | — | ||||||||||||
Net transfer to Timken and subsidiaries | (0.5 | ) | (0.5 | ) | — | — | — | ||||||||||||
Stock option exercise activity | 1.5 | 1.5 | — | — | — | ||||||||||||||
Purchase of treasury shares | (15.2 | ) | — | — | (15.2 | ) | — | ||||||||||||
Issuance of treasury shares | — | (5.7 | ) | — | 5.7 | — | |||||||||||||
Shares surrendered for taxes | (2.1 | ) | — | — | (2.1 | ) | — | ||||||||||||
Balance as of September 30, 2015 | $687.0 | $1,052.0 | ($37.5 | ) | ($46.3 | ) | ($281.2 | ) |
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Three Months Ended September 30, 2015 | Three Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | Pension | Postretirement | Pension | Postretirement | |||||||||||
Service cost | $4.3 | $0.4 | $3.8 | $0.4 | |||||||||||
Interest cost | 12.8 | 2.3 | 12.7 | 2.4 | |||||||||||
Expected return on plan assets | (19.4 | ) | (1.7 | ) | (19.3 | ) | (1.6 | ) | |||||||
Amortization of prior service cost | 0.1 | 0.3 | 0.2 | 0.2 | |||||||||||
Amortization of net actuarial loss | 8.7 | — | 7.0 | — | |||||||||||
Net Periodic Benefit Cost | $6.5 | $1.3 | $4.4 | $1.4 |
Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | Pension | Postretirement | Pension | Postretirement | |||||||||||
Service cost | $12.6 | $1.3 | $6.4 | $0.7 | |||||||||||
Interest cost | 38.5 | 7.0 | 20.5 | 4.0 | |||||||||||
Expected return on plan assets | (58.1 | ) | (5.1 | ) | (31.4 | ) | (2.7 | ) | |||||||
Amortization of prior service cost | 0.4 | 0.8 | 0.3 | 0.3 | |||||||||||
Amortization of net actuarial loss | 25.5 | — | 11.4 | — | |||||||||||
Allocated benefit cost from Timken | — | — | 5.2 | 2.2 | |||||||||||
Net Periodic Benefit Cost | $18.9 | $4.0 | $12.4 | $4.5 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Sales: | |||||||||||||||
Industrial & Mobile | $188.1 | $240.8 | $632.7 | $727.3 | |||||||||||
Energy & Distribution | 44.6 | 193.4 | 266.9 | 538.6 | |||||||||||
$232.7 | $434.2 | $899.6 | $1,265.9 | ||||||||||||
Segment EBIT: | |||||||||||||||
Industrial & Mobile | ($25.0 | ) | $20.3 | ($39.3 | ) | $67.7 | |||||||||
Energy & Distribution | (32.6 | ) | 27.8 | (49.0 | ) | 84.2 | |||||||||
Total Segment EBIT | ($57.6 | ) | $48.1 | ($88.3 | ) | $151.9 | |||||||||
Unallocated (1) | 8.7 | (8.2 | ) | 12.7 | (16.1 | ) | |||||||||
Interest expense | (0.9 | ) | (0.2 | ) | (2.0 | ) | (0.9 | ) | |||||||
(Loss) Income Before Income Taxes | ($49.8 | ) | $39.7 | ($77.6 | ) | $134.9 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(Benefit) provision for income taxes | ($19.0 | ) | $14.0 | ($29.4 | ) | $46.9 | |||||||||
Effective tax rate | 38.2 | % | 35.3 | % | 37.9 | % | 34.8 | % |
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Balance at December 31, 2014 | $1.3 | ||
Expenses | — | ||
Payments | (0.3 | ) | |
Balance at September 30, 2015 | $1.0 |
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Balance at December 31, 2014 | $— | ||
Expenses | 1.9 | ||
Payments | (1.9 | ) | |
Balance at September 30, 2015 | $— |
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September 30, 2015 | December 31, 2014 | ||||||
Inventories, net: | |||||||
Manufacturing supplies | $44.7 | $38.5 | |||||
Raw materials | 25.1 | 56.8 | |||||
Work in process | 62.8 | 110.3 | |||||
Finished products | 73.0 | 91.1 | |||||
Subtotal | 205.6 | 296.7 | |||||
Allowance for surplus and obsolete inventory | (9.6 | ) | (2.9 | ) | |||
Total Inventories, net | $196.0 | $293.8 |
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September 30, 2015 | December 31, 2014 | ||||||
Property, Plant and Equipment, net: | |||||||
Land and buildings | $357.8 | $292.4 | |||||
Machinery and equipment | 1,351.6 | 1,183.0 | |||||
Construction in progress | 78.1 | 288.3 | |||||
Subtotal | 1,787.5 | 1,763.7 | |||||
Less allowances for depreciation | (1,023.2 | ) | (991.8 | ) | |||
Property, Plant and Equipment, net | $764.3 | $771.9 |
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September 30, 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 | $3.2 | $3.6 | $6.8 | $2.4 | $4.4 | |||||||||||||||||
Technology use | 9.0 | 4.6 | 4.4 | 9.0 | 4.1 | 4.9 | |||||||||||||||||
Capitalized software | 54.3 | 33.2 | 21.1 | 50.6 | 29.6 | 21.0 | |||||||||||||||||
Total Intangible Assets | $70.1 | $41.0 | $29.1 | $66.4 | $36.1 | $30.3 |
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September 30, 2015 | December 31, 2014 | ||||||
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.01% as of September 30, 2015) | $12.2 | $12.2 | |||||
Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.01% as of September 30, 2015) | 9.5 | 9.5 | |||||
Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033 (0.01% as of September 30, 2015) | 8.5 | 8.5 | |||||
Revolving credit facility, due 2019 (LIBOR plus applicable spread) | 175.0 | 155.0 | |||||
Total Long-Term Debt | $205.2 | $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 | (1.1 | ) | 0.5 | (0.6 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | 26.7 | 26.7 | ||||||||
Income taxes | — | (10.0 | ) | (10.0 | ) | ||||||
Net current period other comprehensive (loss) income, net of income tax | (1.1 | ) | 17.2 | 16.1 | |||||||
Balance at September 30, 2015 | ($5.9 | ) | ($275.3 | ) | ($281.2 | ) |
Foreign Currency Translation Adjustments | Pension and Postretirement Liability Adjustments | Total | |||||||||
Balance at December 31, 2013 | ($0.4 | ) | $— | ($0.4 | ) | ||||||
Net transfer from Timken | (3.2 | ) | (233.9 | ) | (237.1 | ) | |||||
Other comprehensive (loss) income before reclassifications, before income tax | (0.2 | ) | 0.7 | 0.5 | |||||||
Amounts reclassified from accumulated other comprehensive loss, before income tax | — | 12.0 | 12.0 | ||||||||
Income taxes | — | (4.3 | ) | (4.3 | ) | ||||||
Net current period other comprehensive (loss) income, net of income tax | (0.2 | ) | 8.4 | 8.2 | |||||||
Balance at September 30, 2014 | ($3.8 | ) | ($225.5 | ) | ($229.3 | ) |
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Total | Additional Paid-in Capital | Retained (Deficit) 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 loss | (48.2 | ) | — | (48.2 | ) | — | — | ||||||||||||
Pension and postretirement adjustment, net of tax | 17.2 | — | — | — | 17.2 | ||||||||||||||
Foreign currency translation adjustments | (1.1 | ) | — | — | — | (1.1 | ) | ||||||||||||
Stock-based compensation expense | 6.0 | 6.0 | — | — | — | ||||||||||||||
Dividends – $0.42 per share | (18.7 | ) | — | (18.7 | ) | — | — | ||||||||||||
Net transfer to Timken and subsidiaries | (0.5 | ) | (0.5 | ) | — | — | — | ||||||||||||
Stock option exercise activity | 1.5 | 1.5 | — | — | — | ||||||||||||||
Purchase of treasury shares | (15.2 | ) | — | — | (15.2 | ) | — | ||||||||||||
Issuance of treasury shares | — | (5.7 | ) | — | 5.7 | — | |||||||||||||
Shares surrendered for taxes | (2.1 | ) | — | — | (2.1 | ) | — | ||||||||||||
Balance as of September 30, 2015 | $687.0 | $1,052.0 | ($37.5 | ) | ($46.3 | ) | ($281.2 | ) |
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Three Months Ended September 30, 2015 | Three Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | Pension | Postretirement | Pension | Postretirement | |||||||||||
Service cost | $4.3 | $0.4 | $3.8 | $0.4 | |||||||||||
Interest cost | 12.8 | 2.3 | 12.7 | 2.4 | |||||||||||
Expected return on plan assets | (19.4 | ) | (1.7 | ) | (19.3 | ) | (1.6 | ) | |||||||
Amortization of prior service cost | 0.1 | 0.3 | 0.2 | 0.2 | |||||||||||
Amortization of net actuarial loss | 8.7 | — | 7.0 | — | |||||||||||
Net Periodic Benefit Cost | $6.5 | $1.3 | $4.4 | $1.4 |
Nine Months Ended September 30, 2015 | Nine Months Ended September 30, 2014 | ||||||||||||||
Components of net periodic benefit cost: | Pension | Postretirement | Pension | Postretirement | |||||||||||
Service cost | $12.6 | $1.3 | $6.4 | $0.7 | |||||||||||
Interest cost | 38.5 | 7.0 | 20.5 | 4.0 | |||||||||||
Expected return on plan assets | (58.1 | ) | (5.1 | ) | (31.4 | ) | (2.7 | ) | |||||||
Amortization of prior service cost | 0.4 | 0.8 | 0.3 | 0.3 | |||||||||||
Amortization of net actuarial loss | 25.5 | — | 11.4 | — | |||||||||||
Allocated benefit cost from Timken | — | — | 5.2 | 2.2 | |||||||||||
Net Periodic Benefit Cost | $18.9 | $4.0 | $12.4 | $4.5 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Sales: | |||||||||||||||
Industrial & Mobile | $188.1 | $240.8 | $632.7 | $727.3 | |||||||||||
Energy & Distribution | 44.6 | 193.4 | 266.9 | 538.6 | |||||||||||
$232.7 | $434.2 | $899.6 | $1,265.9 | ||||||||||||
Segment EBIT: | |||||||||||||||
Industrial & Mobile | ($25.0 | ) | $20.3 | ($39.3 | ) | $67.7 | |||||||||
Energy & Distribution | (32.6 | ) | 27.8 | (49.0 | ) | 84.2 | |||||||||
Total Segment EBIT | ($57.6 | ) | $48.1 | ($88.3 | ) | $151.9 | |||||||||
Unallocated (1) | 8.7 | (8.2 | ) | 12.7 | (16.1 | ) | |||||||||
Interest expense | (0.9 | ) | (0.2 | ) | (2.0 | ) | (0.9 | ) | |||||||
(Loss) Income Before Income Taxes | ($49.8 | ) | $39.7 | ($77.6 | ) | $134.9 |
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Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
(Benefit) provision for income taxes | ($19.0 | ) | $14.0 | ($29.4 | ) | $46.9 | |||||||||
Effective tax rate | 38.2 | % | 35.3 | % | 37.9 | % | 34.8 | % |
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Balance at December 31, 2014 | $1.3 | ||
Expenses | — | ||
Payments | (0.3 | ) | |
Balance at September 30, 2015 | $1.0 |
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Balance at December 31, 2014 | $— | ||
Expenses | 1.9 | ||
Payments | (1.9 | ) | |
Balance at September 30, 2015 | $— |
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