TIMKENSTEEL CORP, 10-Q filed on 8/13/2015
Quarterly Report
Document and Entity Information Document
6 Months Ended
Jun. 30, 2015
Jul. 31, 2015
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Jun. 30, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Entity Registrant Name
TimkenSteel Corporation 
 
Entity Central Index Key
0001598428 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Non-accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
44,519,281 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Net sales
$ 278.2 
$ 442.2 
$ 666.9 
$ 831.7 
Cost of products sold
284.3 
369.5 
631.4 
685.5 
Gross (Loss) Profit
(6.1)
72.7 
35.5 
146.2 
Selling, general and administrative expenses
29.7 
26.1 
58.8 
50.4 
Impairment and restructuring charges
1.6 
2.0 
Operating (Loss) Income
(37.4)
46.6 
(25.3)
95.8 
Interest expense
1.0 
0.7 
1.1 
0.7 
Other expense (income), net
0.5 
1.5 
1.4 
(0.1)
(Loss) Income From Operations Before Income Taxes
(38.9)
44.4 
(27.8)
95.2 
(Benefit) Provision for income taxes
(14.6)
15.8 
(10.4)
32.9 
Net (Loss) Income
$ (24.3)
$ 28.6 
$ (17.4)
$ 62.3 
Basic (loss) earnings per share
$ (0.54)
$ 0.63 
$ (0.39)
$ 1.36 
Diluted (loss) earnings per share
$ (0.54)
$ 0.62 
$ (0.39)
$ 1.35 
Dividends per share
$ 0.14 
$ 0.00 
$ 0.28 
$ 0.00 
Consolidated Statements of Comprehensive (Loss) Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Net (Loss) Income
$ (24.3)
$ 28.6 
$ (17.4)
$ 62.3 
Foreign currency translation adjustments
0.9 
0.6 
0.4 
Pension and postretirement liability adjustment
4.6 
2.9 
11.1 
2.9 
Other comprehensive income, net of tax
5.5 
3.5 
11.1 
3.3 
Comprehensive (Loss) Income, net of tax
$ (18.8)
$ 32.1 
$ (6.3)
$ 65.6 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Cash and cash equivalents
$ 35.7 
$ 34.5 
Accounts receivable, net of allowances
115.3 
167.1 
Inventories, net
229.5 
293.8 
Deferred income taxes
20.3 
20.3 
Prepaid expenses
10.0 
28.0 
Other current assets
9.3 
7.6 
Total Current Assets
420.1 
551.3 
Property, Plant and Equipment, Net
764.5 
771.9 
Pension assets
10.3 
8.0 
Intangible assets, net
31.6 
30.3 
Other non-current assets
2.5 
2.6 
Total Other Assets
44.4 
40.9 
Total Assets
1,229.0 
1,364.1 
Accounts payable, trade
61.8 
120.2 
Salaries, wages and benefits
24.0 
49.1 
Accrued pension and postretirement cost
17.8 
17.8 
Income taxes payable
0.3 
0.3 
Other current liabilities
30.0 
38.1 
Total Current Liabilities
133.9 
225.5 
Long-term debt
175.2 
185.2 
Accrued pension and postretirement cost
110.1 
119.1 
Deferred income taxes
69.9 
75.1 
Other non-current liabilities
10.0 
11.1 
Total Non-Current Liabilities
365.2 
390.5 
Commitments and contingencies
Preferred shares, no par value; authorized 10.0 million shares, none issued
Common shares, without par value; authorized 200.0 million shares; issued 2015 - 45.7 million shares; 2014 - 45.7 million shares; outstanding 2015 - 44.8 million shares; 2014 - 44.8 million shares
Additional paid-in capital
1,050.8 
1,050.7 
Retained (deficit) earnings
(0.5)
29.4 
Treasury shares
(34.2)
(34.7)
Accumulated other comprehensive loss
(286.2)
(297.3)
Total Shareholder's Equity
729.9 
748.1 
Total Liabilities and Shareholder's Equity
$ 1,229.0 
$ 1,364.1 
Consolidated Balance Sheets Parenthetical (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Allowances for accounts receivable
$ 1.0 
$ 0.2 
Company preferred stock, no par vale, authorized
10.0 
10.0 
Company common stock, no par vale, authorized
200.0 
200.0 
Common Stock, Shares, Issued
45.7 
45.7 
Common Stock, Shares, Outstanding
44.8 
44.8 
Consolidated Statement of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Net (Loss) Income
$ (17.4)
$ 62.3 
Depreciation and amortization
36.7 
27.6 
Asset Impairment Charges
0.4 
Loss on sale or disposal of assets
0.2 
1.3 
Deferred income tax provision
(12.0)
(15.5)
Stock-based compensation expense
4.8 
2.0 
Pension and other postretirement expense
15.1 
3.7 
Pension and postretirement contributions and payments
(8.3)
(14.8)
Accounts receivable, including due from related party
51.8 
(29.0)
Inventories
64.3 
(11.8)
Accounts payable, including due to related party
(58.4)
28.5 
Other accrued expenses
(31.4)
(1.6)
Prepaid expenses
18.0 
Other, net
(1.6)
2.8 
Net Cash Provided by Operating Activities
62.2 
55.5 
Capital expenditures
(34.6)
(65.6)
Proceeds from sale of assets
0.3 
Net Cash Used by Investing Activities
(34.3)
(65.6)
Cash dividends paid to shareholders
(12.5)
Purchase of treasury shares
(5.0)
Proceeds from exercise of stock options
1.3 
Payment on long-term debt
(40.0)
(30.2)
Proceeds from issuance of debt
30.0 
130.2 
Dividend paid to The Timken Company
(50.0)
Net transfers (to) from The Timken Company and subsidiaries
(0.5)
3.8 
Net Cash (Used) Provided by Financing Activities
(26.7)
53.8 
Effect of exchange rate changes on cash
Increase In Cash and Cash Equivalents
1.2 
43.7 
Cash and cash equivalents at beginning of period
34.5 
Cash and Cash Equivalents at End of Period
$ 35.7 
$ 43.7 
Basis of Presentation
Basis of Presentation and Significant Accounting Policies [Text Block]
Basis of Presentation
TimkenSteel Corporation (TimkenSteel) became an independent company as a result of the distribution on June 30, 2014 by The Timken Company (Timken) of 100 percent of the outstanding common shares of TimkenSteel to Timken shareholders. Each Timken shareholder of record as of the close of business on June 23, 2014 received one TimkenSteel common share for every two Timken common shares held as of the record date for the distribution. TimkenSteel common shares trade on the New York Stock Exchange under the ticker symbol “TMST.”
Prior to the spinoff on June 30, 2014, TimkenSteel operated as a reportable segment of Timken. The accompanying Unaudited Consolidated Financial Statements for periods prior to the separation have been prepared from Timken’s historical accounting records and are presented on a stand-alone basis as if the operations had been conducted independently from Timken. The Unaudited Consolidated Financial Statements for periods prior to the separation include the historical results of operations, assets and liabilities of the legal entities that are considered to comprise TimkenSteel. The historical results of operations and cash flows of TimkenSteel presented in the Unaudited Consolidated Financial Statements for periods prior to the separation may not be indicative of what they would have been had TimkenSteel actually been a separate stand-alone entity during such periods, nor are they necessarily indicative of TimkenSteel’s future results of operations and cash flows.
The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to TimkenSteel’s Audited Consolidated Financial Statements and Notes included in its Annual Report on Form 10-K for the year ended December 31, 2014.
Recent Accounting Pronouncements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]
Recent Accounting Pronouncements
In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-11, “Inventory: Simplifying the Measurement of Inventory (Topic 330),” which provides guidance that simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in, first-out (LIFO) and therefore applies only to the approximately 35% of inventory that TimkenSteel values by first-in, first-out (FIFO), average cost or specific identification methods. It is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. TimkenSteel is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
In April 2015, the FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. It is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. TimkenSteel is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
In April 2015, the FASB issued ASU 2015-03, “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This ASU amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. TimkenSteel is currently evaluating the impact of the adoption of this accounting standard update on its results of operations and financial condition.
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2014-15 did not affect the results of operations and financial condition of TimkenSteel.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The new standard will become effective for TimkenSteel in the first quarter of fiscal year 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early application is permitted but not before the original effective date of annual periods beginning after December 15, 2016. TimkenSteel is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
Inventories
Inventory Disclosure [Text Block]
Inventories
The components of inventories, net as of June 30, 2015 and December 31, 2014 were as follows:
 
June 30,
2015
 
December 31,
2014
Inventories, net:
 
 
 
Manufacturing supplies

$44.7

 

$38.5

Raw materials
35.6

 
56.8

Work in process
74.4

 
110.3

Finished products
77.7

 
91.1

Subtotal
232.4

 
296.7

Allowance for surplus and obsolete inventory
(2.9
)
 
(2.9
)
Total Inventories, net

$229.5

 

$293.8


Inventories are valued at the lower of cost or market, with approximately 65% valued by the LIFO method and the remaining inventories, including manufacturing supplies inventory as well as international (outside the United States) inventories, valued by FIFO, average cost or specific identification methods.
An actual valuation of the inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must be based on management’s estimates of expected year-end inventory levels and costs. Because these calculations are subject to many factors beyond management’s control, annual results may differ from interim results as they are subject to the final year-end LIFO inventory valuation.
The LIFO reserve as of June 30, 2015 and December 31, 2014 was $74.7 million and $86.7 million, respectively. TimkenSteel projects that its LIFO reserve will decrease for the year ending December 31, 2015 based on lower anticipated costs, particularly scrap steel costs, and anticipated lower inventory quantities, slightly offset by higher manufacturing costs.
Property, Plant and Equipment
Property, Plant and Equipment Disclosure [Text Block]
Property, Plant and Equipment
The components of property, plant and equipment, net as of June 30, 2015 and December 31, 2014 were as follows:
 
June 30,
2015
 
December 31,
2014
Property, Plant and Equipment, net:
 
 
 
Land and buildings

$356.8

 

$292.4

Machinery and equipment
1,347.1

 
1,183.0

Construction in progress
77.6

 
288.3

Subtotal
1,781.5

 
1,763.7

Less allowances for depreciation
(1,017.0
)
 
(991.8
)
Property, Plant and Equipment, net

$764.5

 

$771.9


Total depreciation expense was $33.6 million and $25.7 million for the six months ended June 30, 2015 and 2014, respectively. TimkenSteel recorded capitalized interest of $1.1 million for the six months ended June 30, 2015. Prior to the spinoff, TimkenSteel capitalized interest allocated from Timken related to construction projects of $5.7 million for the six months ended June 30, 2014. TimkenSteel recorded impairment charges of $0.4 million related to the discontinued use of certain assets during the six months ended June 30, 2015.
Intangible Assets
Intangible Assets Disclosure [Text Block]
Intangible Assets
The components of intangible assets, net as of June 30, 2015 and December 31, 2014 were as follows:
 
June 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

 

$2.6

 

$4.2

 

$6.8

 

$2.4

 

$4.4

Technology use
9.0

 
4.4

 
4.6

 
9.0

 
4.1

 
4.9

Capitalized software
55.0

 
32.2

 
22.8

 
50.6

 
29.6

 
21.0

Total Intangible Assets

$70.8

 

$39.2

 

$31.6

 

$66.4

 

$36.1

 

$30.3


Intangible assets subject to amortization are amortized on a straight-line method over their legal or estimated useful lives, with useful lives ranging from 3 to 15 years. Amortization expense for intangible assets for the six months ended June 30, 2015 and 2014 was $3.1 million and $1.9 million, respectively.
Financing Arrangements
Financing Arrangements
Financing Arrangements
The components of long-term debt as of June 30, 2015 and December 31, 2014 were as follows:
 
June 30,
2015
 
December 31,
2014
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.07% as of June 30, 2015)

$12.2

 

$12.2

Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.07% as of June 30, 2015)
9.5

 
9.5

Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033 (0.08% as of June 30, 2015)
8.5

 
8.5

Revolving credit facility, due 2019 (LIBOR plus applicable spread)
145.0

 
155.0

Total Long-Term Debt

$175.2

 

$185.2


Credit Facility
On June 30, 2014, TimkenSteel entered into a credit facility with JPMorgan Chase Bank, N.A., as administrative agent, PNC Bank, National Association, as syndication agent, Bank of America, N.A. and HSBC Bank USA, National Association, as co-documentation agents, and the other lenders and arrangers party thereto. The credit facility has a term of five years through June 30, 2019 and provides for a committed revolving credit line of up to $300.0 million. The credit facility includes an expansion option allowing TimkenSteel to request additional commitments of up to $150.0 million in term loans or revolving credit commitments, subject to certain conditions and approvals as set forth in the credit agreement. The credit facility provides a $50.0 million sublimit for multicurrency loans, a $50.0 million sublimit for letters of credit and a $30.0 million sublimit for swing line loans.
The credit facility may be used for working capital and asset renewal and acquisition and is secured by a first priority lien on substantially all of the assets of TimkenSteel and its subsidiaries.
TimkenSteel is required to maintain a certain capitalization ratio and interest coverage ratio as well as minimum liquidity balances as set forth in the credit agreement. As of June 30, 2015, TimkenSteel was in compliance with these ratios and liquidity requirements, as well as the additional covenants contained in the credit agreement. The credit agreement also provides the lenders with the ability to reduce the credit line amount even if TimkenSteel is in compliance with all conditions of the credit agreement upon a material adverse change to the business, properties, assets, financial condition or results of operations of TimkenSteel. Subject to certain limited exceptions, the credit agreement contains a number of restrictions that limit TimkenSteel’s ability to incur additional indebtedness, pledge its assets as security, guarantee obligations of third parties, make investments, undergo a merger or consolidation, dispose of assets, or materially change its line of business, among other things. In addition, the credit agreement includes a cross-default provision whereby an event of default under other debt obligations, as defined in the credit agreement, will be considered an event of default under the credit agreement.
Borrowings under the credit facility bear interest based on the daily balance outstanding at LIBOR (with no rate floor), plus an applicable margin (varying from 1.25% to 2.25%) or, in certain cases, an alternate base rate (based on certain lending institutions’ Prime Rate or as otherwise specified in the credit agreement, with no rate floor), plus an applicable margin (varying from 0.25% to 1.25%). The credit facility also carries a commitment fee equal to the unused borrowings multiplied by an applicable margin (varying from 0.20% to 0.40%). The applicable margins are calculated quarterly and vary based on TimkenSteel’s consolidated capitalization ratio as set forth in the credit agreement. The interest rate under the revolving credit facility was 1.94% as of June 30, 2015. The amount available under the credit facility as of June 30, 2015 was $154.4 million.
Advanced Quench-and-Temper Facility
In the second quarter of 2015, TimkenSteel entered into a capital lease arrangement with the Stark County Port Authority in connection with the construction of a new advanced quench-and-temper facility in Perry Township, Ohio and the issuance of an Industrial Revenue Bond. The bond is held 100% by TimkenSteel Material Services, LLC (a wholly-owned subsidiary of the Company) and, accordingly, the obligation under the lease agreement and investment in the Industrial Revenue Bond, as well as the related interest income and expense, are eliminated in the Unaudited Consolidated Financial Statements. As a result, TimkenSteel’s net investment cost in the advanced quench-and-temper facility of $3.7 million being reported in property, plant and equipment, net in the Unaudited Consolidated Balance Sheets.
Revenue Refunding Bonds
On June 1, 2014, Timken purchased, in lieu of redemption, the State of Ohio Water Development Revenue Refunding Bonds (Water Bonds), State of Ohio Air Quality Development Revenue Refunding Bonds (Air Quality Bonds) and State of Ohio Pollution Control Revenue Refunding Bonds (Pollution Control Bonds) (collectively, Bonds). Pursuant to an Assignment and Assumption Agreement dated June 24, 2014 (Assignment) between Timken and TimkenSteel, Timken assigned all of its right, title and interest in and to the loan agreements and the notes associated with the Bonds to, and these obligations were assumed by, TimkenSteel. Additionally, replacement letters of credit were issued for the Water Bonds and the Pollution Control Bonds. The Bonds were remarketed on June 24, 2014 (Remarketing Date) in connection with the conversion of the interest rate mode for the Bonds to the weekly rate and the delivery of the replacement letters of credit, as applicable. TimkenSteel is responsible for payment of the interest and principal associated with the Bonds subsequent to the Remarketing Date. As a result of the purchase and remarketing of the Bonds, TimkenSteel recorded a loss on debt extinguishment of $0.7 million during the second quarter of 2014 related to the write-off of original deferred financing costs, which are reflected as interest expense in the Unaudited Consolidated Statements of Operations.
All of TimkenSteel’s long-term debt is variable-rate debt and, as a result, the carrying value of this debt is a reasonable estimate of fair value as interest rates on these borrowings approximate current market rates, which is considered a Level 2 input.
Accumulated Other Comprehensive Loss
Comprehensive Income (Loss) Note [Text Block]
Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss for the six months ended June 30, 2015 and 2014 by component are as follows:
 
Foreign Currency Translation Adjustments
 
Pension and Postretirement Liability Adjustments
 
Total
Balance at December 31, 2014

($4.8
)
 

($292.5
)
 

($297.3
)
Other comprehensive loss before reclassifications, before income tax

 
(0.1
)
 
(0.1
)
Amounts reclassified from accumulated other comprehensive loss, before income tax

 
17.6

 
17.6

Income taxes

 
(6.4
)
 
(6.4
)
Net current period other comprehensive income, net of income tax

 
11.1

 
11.1

Balance at June 30, 2015

($4.8
)
 

($281.4
)
 

($286.2
)
 
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 income before reclassifications, before income tax
0.4

 

 
0.4

Amounts reclassified from accumulated other comprehensive loss, before income tax

 
4.6

 
4.6

Income taxes

 
(1.7
)
 
(1.7
)
Net current period other comprehensive income, net of income tax
0.4

 
2.9

 
3.3

Balance at June 30, 2014

($3.2
)
 

($231.0
)
 

($234.2
)

The reclassification of the pension and postretirement liability adjustment was included in costs of products sold and selling, general and administrative expenses in the Unaudited Consolidated Statements of Operations. These components are included in the computation of net periodic benefit cost.
Changes in Equity
Stockholders' Equity Note Disclosure [Text Block]
Changes in Shareholders' Equity
Changes in the components of shareholders’ equity for the six months ended June 30, 2015 were as follows:
 
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
(17.4
)
 

 
(17.4
)
 

 

Pension and postretirement adjustment, net of tax
11.1

 

 

 

 
11.1

Stock-based compensation expense
4.8

 
4.8

 

 

 

Dividends – $0.28 per share
(12.5
)
 

 
(12.5
)
 

 

Net transfer to Timken and subsidiaries
(0.5
)
 
(0.5
)
 

 

 

Stock option exercise activity
1.3

 
1.3

 

 

 

Purchase of treasury shares
(2.9
)
 

 

 
(2.9
)
 

Issuance of treasury shares

 
(5.5
)
 

 
5.5

 

Shares surrendered for taxes
(2.1
)
 

 

 
(2.1
)
 

Balance as of June 30, 2015

$729.9

 

$1,050.8

 

($0.5
)
 

($34.2
)
 

($286.2
)
Retirement and Postretirement Benefits
Pension and Other Postretirement Benefits Disclosure [Text Block]
Retirement and Postretirement Plans
The components of net periodic benefit cost for the three and six months ended June 30, 2015 and 2014 were as follows:
 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
Components of net periodic benefit cost:
Pension
 
Postretirement
 
Pension
 
Postretirement
Service cost

$4.1

 

$0.5

 

$2.6

 

$0.3

Interest cost
12.7

 
2.3

 
7.8

 
1.6

Expected return on plan assets
(19.9
)
 
(1.7
)
 
(12.1
)
 
(1.1
)
Amortization of prior service cost
0.2

 
0.2

 
0.1

 
0.1

Amortization of net actuarial loss
8.2

 
(0.1
)
 
4.4

 

Allocated benefit cost from Timken

 

 
0.8

 
0.5

Net Periodic Benefit Cost

$5.3

 

$1.2

 

$3.6

 

$1.4

 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
Components of net periodic benefit cost:
Pension
 
Postretirement
 
Pension
 
Postretirement
Service cost

$8.3

 

$0.9

 

$2.6

 

$0.3

Interest cost
25.7

 
4.7

 
7.8

 
1.6

Expected return on plan assets
(38.7
)
 
(3.4
)
 
(12.1
)
 
(1.1
)
Amortization of prior service cost
0.3

 
0.5

 
0.1

 
0.1

Amortization of net actuarial loss
16.8

 

 
4.4

 

Allocated benefit cost from Timken

 

 
5.2

 
2.2

Net Periodic Benefit Cost

$12.4

 

$2.7

 

$8.0

 

$3.1


During the three and six months ended June 30, 2014, prior to the spinoff, employees of TimkenSteel participated in various retirement and postretirement benefit plans sponsored by Timken. Because Timken provided these benefits to eligible employees and retirees of TimkenSteel, the costs to participating employees of TimkenSteel in these plans were reflected in the Unaudited Consolidated Financial Statements, while the related assets and liabilities were retained by Timken. Expense allocations for these benefits were determined based on a review of personnel by business unit and based on allocations of corporate and other shared functional personnel. All cost allocations related to the various retirement benefit plans have been deemed paid by TimkenSteel to Timken in the period in which the cost was recorded. Net periodic benefit costs are included in the Unaudited Consolidated Statements of Operations as a component of cost of products sold and selling, general and administrative expenses. Allocated benefit costs from Timken were funded through intercompany transactions.
Earnings Per Share
Earnings Per Share [Text Block]
Earnings Per Share
On June 30, 2014, 45.4 million TimkenSteel common shares were distributed to Timken shareholders in conjunction with the spinoff. For comparative purposes, and to provide a more meaningful calculation for weighted average shares, this amount was assumed to be outstanding as of the beginning of the three and six months ended June 30, 2014 in the calculation of basic weighted average shares. In addition, for the dilutive weighted average share calculations, the dilutive securities outstanding at June 30, 2014 were assumed to also be outstanding as of the beginning of the three and six months ended June 30, 2014. For the three and six months ended June 30, 2015 and 2014, 2.0 million and 0.2 million of equity-based awards, respectively, were excluded from the computation of diluted earnings per share because their effect would have been anti-dilutive. In periods in which a net loss has occurred, as is the case for the three and six months ended June 30, 2015, the dilutive effect of stock-based awards is not recognized and thus is not utilized in the calculation of diluted earnings per share.
The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2015 and 2014:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Numerator:
 
 
 
 
 
 
 
Net (loss) income for basic and diluted earnings per share

($24.3
)
 

$28.6

 

($17.4
)
 

$62.3

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average shares outstanding, basic
44,779,016

 
45,729,624

 
44,776,190

 
45,729,624

Dilutive effect of stock-based awards

 
519,883

 

 
519,883

Weighted average shares outstanding, diluted
44,779,016

 
46,249,507

 
44,776,190

 
46,249,507

 
 
 
 
 
 
 
 
Basic (loss) earnings per share

($0.54
)
 

$0.63

 

($0.39
)
 

$1.36

Diluted (loss) earnings per share

($0.54
)
 

$0.62

 

($0.39
)
 

$1.35

Segment Information
Segment Reporting Disclosure [Text Block]
Segment Information
TimkenSteel operates and reports financial results for two segments: Industrial & Mobile and Energy & Distribution. These segments represent the level at which the chief operating decision maker (CODM) reviews the financial performance of TimkenSteel and makes operating decisions. Segment earnings before interest and taxes (EBIT) is the measure of profit and loss that the CODM uses to evaluate the financial performance of TimkenSteel and is the basis for resource allocation, performance reviews and compensation. For these reasons, TimkenSteel believes that Segment EBIT represents the most relevant measure of segment profit and loss. The CODM may exclude certain charges or gains from EBIT, such as corporate charges and other special charges, to arrive at a Segment EBIT that is a more meaningful measure of profit and loss upon which to base operating decisions. TimkenSteel defines Segment EBIT margin as Segment EBIT as a percentage of net sales.
TimkenSteel changed the method by which certain costs and expenses are allocated to its reportable segments beginning with the third quarter of 2014. The change reflects a refinement of its internal reporting to align with the way management now makes operating decisions and manages the growth and profitability of its business as an independent company subsequent to the spinoff from Timken. This change corresponds with management’s current approach to allocating costs and resources and assessing the performance of its segments. TimkenSteel reports segment information in accordance with the provisions of FASB Accounting Standards Codification 280, “Segment Reporting.” There has been no change in the total consolidated financial condition or results of operations previously reported as a result of the change in its segment cost structure. All periods presented have been adjusted to reflect this change.
Industrial & Mobile
The Industrial & Mobile segment is a leading provider of high-quality air-melted alloy steel bars, tubes, precision components and value-added services. For the industrial market sector, TimkenSteel sells to original equipment manufacturers including agriculture, construction, machinery, military, mining, power generation and rail. For the mobile market sector, TimkenSteel sells to automotive customers including light-vehicle, medium-truck and heavy-truck applications. Products in this segment are in applications including engine, transmission and driveline components, large hydraulic system components, military ordnance, mining and construction drilling applications and other types of equipment.
Energy & Distribution
The Energy & Distribution segment is a leading provider of high-quality air-melted alloy steel bars, seamless tubes and value-added services such as thermal treatment and machining. The Energy & Distribution segment offers unique steel chemistries in various product configurations to improve customers’ performance in demanding drilling, completion and production activities. Application of TimkenSteel’s engineered material solutions can be found in both offshore and land-based drilling rig activities. Vertical and horizontal drilling and completion applications include high strength drill string components and specialized completion tools that enable hydraulic fracturing for shale gas and oil. Distribution channel activity also is conducted through this segment. Distribution channel activity constitutes direct sales of steel bars and seamless mechanical tubes to distributors. TimkenSteel authorized service centers enable TimkenSteel to collaborate with various independent service centers to deliver differentiated solutions for end users.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Net Sales:
 
 
 
 
 
 
 
Industrial & Mobile

$211.1

 

$254.7

 

$444.6

 

$486.5

Energy & Distribution
67.1

 
187.5

 
222.3

 
345.2

 

$278.2

 

$442.2

 

$666.9

 

$831.7

Segment EBIT:
 
 
 
 
 
 
 
Industrial & Mobile

($18.8
)
 

$20.1

 

($14.3
)
 

$47.4

Energy & Distribution
(21.0
)
 
28.2

 
(16.4
)
 
56.4

Total Segment EBIT

($39.8
)
 

$48.3

 

($30.7
)
 

$103.8

Unallocated (1) 
1.9

 
(3.2
)
 
4.0

 
(7.9
)
Interest expense
(1.0
)
 
(0.7
)
 
(1.1
)
 
(0.7
)
(Loss) Income Before Income Taxes

($38.9
)
 

$44.4

 

($27.8
)
 

$95.2

(1) Unallocated are costs associated with strategy, corporate development, tax, treasury, legal, internal audit, LIFO and general administration expenses.
Income Tax (Benefit) Provision
Income Tax Disclosure [Text Block]
Income Tax (Benefit) Provision
TimkenSteel’s (benefit) provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. In addition, non-recurring or discrete items, including interest on prior-year tax liabilities, are recorded during the periods in which they occur.
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
(Benefit) provision for income taxes

($14.6
)
 

$15.8

 

($10.4
)
 

$32.9

Effective tax rate
37.5
%
 
35.6
%
 
37.4
%
 
34.6
%

The effective tax rate for the three months ended June 30, 2015 was higher than the U.S. federal statutory rate of 35% due primarily to U.S. state and local taxes and the tax benefit associated with non-U.S. earnings taxed at a rate less than the U.S. statutory rate. These were partially offset by the effect of other permanent differences.
The effective tax rate for the three months ended June 30, 2014 was higher than the U.S. federal statutory rate of 35% primarily due to losses at foreign subsidiaries where no tax benefit could be recorded, U.S. state and local taxes and certain discrete tax expenses. These were partially offset by the U.S. manufacturing deduction and the effect of other permanent differences.
The effective tax rate for the six months ended June 30, 2015 was higher than the U.S. federal statutory rate of 35% due primarily to U.S. state and local taxes and the tax benefit associated with non-U.S. earnings taxed at a rate less than the U.S. statutory rate. These were partially offset by the effect of other permanent differences.
The effective tax rate for the six months ended June 30, 2014 was lower than the U.S. federal statutory rate of 35% primarily due to the U.S. manufacturing deduction. This was partially offset by losses at foreign subsidiaries where no tax benefit could be recorded, U.S. state and local taxes and certain discrete tax expenses.
Contingencies
Commitments and Contingencies Disclosure [Text Block]
Contingencies
TimkenSteel has a number of loss exposures that are incurred in the ordinary course of business such as environmental claims, product liability claims, product warranty claims, litigation and accounts receivable reserves. Establishing loss reserves for these matters requires management’s estimate and judgment regarding risk exposure and ultimate liability or realization. These loss reserves are reviewed periodically and adjustments are made to reflect the most recent facts and circumstances.
Environmental Matters
From time to time, TimkenSteel may be a party to lawsuits, claims or other proceedings related to environmental matters and/or may receive notices of potential violations of environmental laws and regulations from the U.S. Environmental Protection Agency and similar state or local authorities. TimkenSteel recorded reserves for such environmental matters as other current liabilities on the Unaudited Consolidated Balance Sheets. Accruals related to such environmental matters represent management’s best estimate of the fees and costs associated with these matters. Although it is not possible to predict with certainty the outcome of such matters, management believes that their ultimate dispositions should not have a material adverse effect on TimkenSteel’s financial position, cash flows, or results of operations.
Balance at December 31, 2014

$1.3

Expenses

Payments
(0.2
)
Balance at June 30, 2015

$1.1

Restructuring
Restructuring and Related Activities Disclosure [Text Block]
Restructuring Charges
During the second quarter of 2015, TimkenSteel approved and implemented a cost reduction plan that resulted in the reduction of TimkenSteel’s salaried headcount. As a result, TimkenSteel recognized restructuring charges of $1.6 million consisting of severance, employee-related benefits and other associated expenses. TimkenSteel recorded reserves for such restructuring charges as other current liabilities on the Unaudited Consolidated Balance Sheets. Of the $1.6 million charge, $1.2 million related to the Industrial & Mobile segment and $0.4 million related to the Energy & Distribution segment. The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2015:
Balance at December 31, 2014

$—

Expenses
1.6

Payments
(0.6
)
Balance at June 30, 2015

$1.0

Basis of Presentation (Policies)
Business Description and Basis of Presentation [Text Block]
Basis of Presentation
TimkenSteel Corporation (TimkenSteel) became an independent company as a result of the distribution on June 30, 2014 by The Timken Company (Timken) of 100 percent of the outstanding common shares of TimkenSteel to Timken shareholders. Each Timken shareholder of record as of the close of business on June 23, 2014 received one TimkenSteel common share for every two Timken common shares held as of the record date for the distribution. TimkenSteel common shares trade on the New York Stock Exchange under the ticker symbol “TMST.”
Prior to the spinoff on June 30, 2014, TimkenSteel operated as a reportable segment of Timken. The accompanying Unaudited Consolidated Financial Statements for periods prior to the separation have been prepared from Timken’s historical accounting records and are presented on a stand-alone basis as if the operations had been conducted independently from Timken. The Unaudited Consolidated Financial Statements for periods prior to the separation include the historical results of operations, assets and liabilities of the legal entities that are considered to comprise TimkenSteel. The historical results of operations and cash flows of TimkenSteel presented in the Unaudited Consolidated Financial Statements for periods prior to the separation may not be indicative of what they would have been had TimkenSteel actually been a separate stand-alone entity during such periods, nor are they necessarily indicative of TimkenSteel’s future results of operations and cash flows.
The accompanying Unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) and disclosures considered necessary for a fair presentation have been included. For further information, refer to TimkenSteel’s Audited Consolidated Financial Statements and Notes included in its Annual Report on Form 10-K for the year ended December 31, 2014.
Recent Accounting Pronouncements (Policies)
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-11, “Inventory: Simplifying the Measurement of Inventory (Topic 330),” which provides guidance that simplifies the subsequent measurement of inventories by replacing the lower of cost or market test with a lower of cost and net realizable value test. The guidance applies only to inventories for which cost is determined by methods other than last-in, first-out (LIFO) and therefore applies only to the approximately 35% of inventory that TimkenSteel values by first-in, first-out (FIFO), average cost or specific identification methods. It is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. TimkenSteel is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
In April 2015, the FASB issued ASU 2015-05, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” This ASU clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. It is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. TimkenSteel is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
In April 2015, the FASB issued ASU 2015-03, “Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” This ASU amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. It is effective for annual reporting periods beginning after December 15, 2015, with early adoption permitted. TimkenSteel is currently evaluating the impact of the adoption of this accounting standard update on its results of operations and financial condition.
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements-Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” This ASU is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this ASU are effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2014-15 did not affect the results of operations and financial condition of TimkenSteel.
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets. This ASU will supersede the revenue recognition requirements in Topic 605, “Revenue Recognition,” and most industry-specific guidance. This ASU also supersedes some cost guidance included in Subtopic 605-35, “Revenue Recognition-Construction-Type and Production-Type Contracts.” The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In July 2015, the FASB affirmed a one-year deferral of the effective date of the new revenue standard. The new standard will become effective for TimkenSteel in the first quarter of fiscal year 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. Early application is permitted but not before the original effective date of annual periods beginning after December 15, 2016. TimkenSteel is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
Inventories (Tables)
Schedule of Inventory, Current [Table Text Block]
The components of inventories, net as of June 30, 2015 and December 31, 2014 were as follows:
 
June 30,
2015
 
December 31,
2014
Inventories, net:
 
 
 
Manufacturing supplies

$44.7

 

$38.5

Raw materials
35.6

 
56.8

Work in process
74.4

 
110.3

Finished products
77.7

 
91.1

Subtotal
232.4

 
296.7

Allowance for surplus and obsolete inventory
(2.9
)
 
(2.9
)
Total Inventories, net

$229.5

 

$293.8

Property, Plant and Equipment (Tables)
Property, Plant and Equipment [Table Text Block]
The components of property, plant and equipment, net as of June 30, 2015 and December 31, 2014 were as follows:
 
June 30,
2015
 
December 31,
2014
Property, Plant and Equipment, net:
 
 
 
Land and buildings

$356.8

 

$292.4

Machinery and equipment
1,347.1

 
1,183.0

Construction in progress
77.6

 
288.3

Subtotal
1,781.5

 
1,763.7

Less allowances for depreciation
(1,017.0
)
 
(991.8
)
Property, Plant and Equipment, net

$764.5

 

$771.9

Intangible Assets (Tables)
Schedule of Finite-Lived Intangible Assets [Table Text Block]
The components of intangible assets, net as of June 30, 2015 and December 31, 2014 were as follows:
 
June 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

 

$2.6

 

$4.2

 

$6.8

 

$2.4

 

$4.4

Technology use
9.0

 
4.4

 
4.6

 
9.0

 
4.1

 
4.9

Capitalized software
55.0

 
32.2

 
22.8

 
50.6

 
29.6

 
21.0

Total Intangible Assets

$70.8

 

$39.2

 

$31.6

 

$66.4

 

$36.1

 

$30.3

Financing Arrangements (Tables)
Schedule of Long-term Debt Instruments [Table Text Block]
The components of long-term debt as of June 30, 2015 and December 31, 2014 were as follows:
 
June 30,
2015
 
December 31,
2014
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.07% as of June 30, 2015)

$12.2

 

$12.2

Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.07% as of June 30, 2015)
9.5

 
9.5

Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033 (0.08% as of June 30, 2015)
8.5

 
8.5

Revolving credit facility, due 2019 (LIBOR plus applicable spread)
145.0

 
155.0

Total Long-Term Debt

$175.2

 

$185.2

Accumulated Other Comprehensive Loss (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Changes in accumulated other comprehensive loss for the six months ended June 30, 2015 and 2014 by component are as follows:
 
Foreign Currency Translation Adjustments
 
Pension and Postretirement Liability Adjustments
 
Total
Balance at December 31, 2014

($4.8
)
 

($292.5
)
 

($297.3
)
Other comprehensive loss before reclassifications, before income tax

 
(0.1
)
 
(0.1
)
Amounts reclassified from accumulated other comprehensive loss, before income tax

 
17.6

 
17.6

Income taxes

 
(6.4
)
 
(6.4
)
Net current period other comprehensive income, net of income tax

 
11.1

 
11.1

Balance at June 30, 2015

($4.8
)
 

($281.4
)
 

($286.2
)
 
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 income before reclassifications, before income tax
0.4

 

 
0.4

Amounts reclassified from accumulated other comprehensive loss, before income tax

 
4.6

 
4.6

Income taxes

 
(1.7
)
 
(1.7
)
Net current period other comprehensive income, net of income tax
0.4

 
2.9

 
3.3

Balance at June 30, 2014

($3.2
)
 

($231.0
)
 

($234.2
)
Changes in Equity (Tables)
Schedule of Stockholders Equity [Table Text Block]
Changes in the components of shareholders’ equity for the six months ended June 30, 2015 were as follows:
 
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
(17.4
)
 

 
(17.4
)
 

 

Pension and postretirement adjustment, net of tax
11.1

 

 

 

 
11.1

Stock-based compensation expense
4.8

 
4.8

 

 

 

Dividends – $0.28 per share
(12.5
)
 

 
(12.5
)
 

 

Net transfer to Timken and subsidiaries
(0.5
)
 
(0.5
)
 

 

 

Stock option exercise activity
1.3

 
1.3

 

 

 

Purchase of treasury shares
(2.9
)
 

 

 
(2.9
)
 

Issuance of treasury shares

 
(5.5
)
 

 
5.5

 

Shares surrendered for taxes
(2.1
)
 

 

 
(2.1
)
 

Balance as of June 30, 2015

$729.9

 

$1,050.8

 

($0.5
)
 

($34.2
)
 

($286.2
)
Retirement and Postretirement Benefits (Tables)
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
The components of net periodic benefit cost for the three and six months ended June 30, 2015 and 2014 were as follows:
 
Three Months Ended June 30, 2015
 
Three Months Ended June 30, 2014
Components of net periodic benefit cost:
Pension
 
Postretirement
 
Pension
 
Postretirement
Service cost

$4.1

 

$0.5

 

$2.6

 

$0.3

Interest cost
12.7

 
2.3

 
7.8

 
1.6

Expected return on plan assets
(19.9
)
 
(1.7
)
 
(12.1
)
 
(1.1
)
Amortization of prior service cost
0.2

 
0.2

 
0.1

 
0.1

Amortization of net actuarial loss
8.2

 
(0.1
)
 
4.4

 

Allocated benefit cost from Timken

 

 
0.8

 
0.5

Net Periodic Benefit Cost

$5.3

 

$1.2

 

$3.6

 

$1.4

 
Six Months Ended June 30, 2015
 
Six Months Ended June 30, 2014
Components of net periodic benefit cost:
Pension
 
Postretirement
 
Pension
 
Postretirement
Service cost

$8.3

 

$0.9

 

$2.6

 

$0.3

Interest cost
25.7

 
4.7

 
7.8

 
1.6

Expected return on plan assets
(38.7
)
 
(3.4
)
 
(12.1
)
 
(1.1
)
Amortization of prior service cost
0.3

 
0.5

 
0.1

 
0.1

Amortization of net actuarial loss
16.8

 

 
4.4

 

Allocated benefit cost from Timken

 

 
5.2

 
2.2

Net Periodic Benefit Cost

$12.4

 

$2.7

 

$8.0

 

$3.1

Earnings Per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following table sets forth the reconciliation of the numerator and the denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2015 and 2014:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Numerator:
 
 
 
 
 
 
 
Net (loss) income for basic and diluted earnings per share

($24.3
)
 

$28.6

 

($17.4
)
 

$62.3

 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
Weighted average shares outstanding, basic
44,779,016

 
45,729,624

 
44,776,190

 
45,729,624

Dilutive effect of stock-based awards

 
519,883

 

 
519,883

Weighted average shares outstanding, diluted
44,779,016

 
46,249,507

 
44,776,190

 
46,249,507

 
 
 
 
 
 
 
 
Basic (loss) earnings per share

($0.54
)
 

$0.63

 

($0.39
)
 

$1.36

Diluted (loss) earnings per share

($0.54
)
 

$0.62

 

($0.39
)
 

$1.35

Segment Information (Tables)
Schedule of Segment Reporting Information, by Segment [Table Text Block]
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
Net Sales:
 
 
 
 
 
 
 
Industrial & Mobile

$211.1

 

$254.7

 

$444.6

 

$486.5

Energy & Distribution
67.1

 
187.5

 
222.3

 
345.2

 

$278.2

 

$442.2

 

$666.9

 

$831.7

Segment EBIT:
 
 
 
 
 
 
 
Industrial & Mobile

($18.8
)
 

$20.1

 

($14.3
)
 

$47.4

Energy & Distribution
(21.0
)
 
28.2

 
(16.4
)
 
56.4

Total Segment EBIT

($39.8
)
 

$48.3

 

($30.7
)
 

$103.8

Unallocated (1) 
1.9

 
(3.2
)
 
4.0

 
(7.9
)
Interest expense
(1.0
)
 
(0.7
)
 
(1.1
)
 
(0.7
)
(Loss) Income Before Income Taxes

($38.9
)
 

$44.4

 

($27.8
)
 

$95.2

Income Tax (Benefit) Provision (Tables)
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2015
 
2014
 
2015
 
2014
(Benefit) provision for income taxes

($14.6
)
 

$15.8

 

($10.4
)
 

$32.9

Effective tax rate
37.5
%
 
35.6
%
 
37.4
%
 
34.6
%
Contingencies (Tables)
Schedule of Loss Contingencies by Contingency [Table Text Block]
Balance at December 31, 2014

$1.3

Expenses

Payments
(0.2
)
Balance at June 30, 2015

$1.1

Restructuring (Tables)
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]
The following is a rollforward of the consolidated restructuring accrual for the six months ended June 30, 2015:
Balance at December 31, 2014

$—

Expenses
1.6

Payments
(0.6
)
Balance at June 30, 2015

$1.0

Inventories (Details 1) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Inventory [Line Items]
 
 
Manufacturing supplies
$ 44.7 
$ 38.5 
Raw materials
35.6 
56.8 
Work in process
74.4 
110.3 
Finished products
77.7 
91.1 
Subtotal
232.4 
296.7 
Allowance for surplus and obsolete inventory
(2.9)
(2.9)
Total Inventories, net
$ 229.5 
$ 293.8 
Inventories (Details 2) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Inventory [Line Items]
 
 
Percentage of LIFO Inventory
65.00% 
 
Inventory, LIFO Reserve
$ 74.7 
$ 86.7 
Property, Plant and Equipment (Details 1) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Land and buildings
$ 356.8 
$ 292.4 
Machinery and equipment
1,347.1 
1,183.0 
Construction in Progress, Gross
77.6 
288.3 
Subtotal
1,781.5 
1,763.7 
Less allowances for depreciation
(1,017.0)
(991.8)
Property, Plant and Equipment, net
$ 764.5 
$ 771.9 
Property, Plant and Equipment (Details 2) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Property, Plant and Equipment [Line Items]
 
 
Depreciation
$ 33.6 
$ 25.7 
Interest Costs Capitalized
1.1 
5.7 
Asset Impairment Charges
$ 0.4 
$ 0 
Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Gross
$ 70.8 
$ 66.4 
Finite-Lived Intangible Assets, Accumulated Amortization
39.2 
36.1 
Finite-Lived Intangible Assets, Net
31.6 
30.3 
Customer Relationships [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Gross
6.8 
6.8 
Finite-Lived Intangible Assets, Accumulated Amortization
2.6 
2.4 
Finite-Lived Intangible Assets, Net
4.2 
4.4 
Technology-Based Intangible Assets [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Gross
9.0 
9.0 
Finite-Lived Intangible Assets, Accumulated Amortization
4.4 
4.1 
Finite-Lived Intangible Assets, Net
4.6 
4.9 
Computer Software, Intangible Asset [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Assets, Gross
55.0 
50.6 
Finite-Lived Intangible Assets, Accumulated Amortization
32.2 
29.6 
Finite-Lived Intangible Assets, Net
$ 22.8 
$ 21.0 
Intangible Assets Intangible Assets (Details 2) (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of Intangible Assets
$ 3.1 
$ 1.9 
Maximum [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
15 years 
 
Minimum [Member]
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Finite-Lived Intangible Asset, Useful Life
3 years 
 
Financing Arrangements (Details 1) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
Long-term debt
$ 175.2 
$ 185.2 
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
145.0 
155.0 
Debt Instrument, Interest Rate, Stated Percentage
1.94% 
 
State of Ohio Water Development Revenue Refunding Bonds [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
12.2 
12.2 
Debt Instrument, Interest Rate, Stated Percentage
0.07% 
 
State of Ohio Air Quality Development Revenue Refunding Bonds [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
9.5 
9.5 
Debt Instrument, Interest Rate, Stated Percentage
0.07% 
 
State of Ohio Pollution Control Revenue Refunding Bonds [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
$ 8.5 
$ 8.5 
Debt Instrument, Interest Rate, Stated Percentage
0.08% 
 
Financing Arrangements (Details 2) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
 
Line of Credit Facility, Expiration Date
Jun. 30, 2019 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
$ 300.0 
 
 
Line of Credit Facility, Expansion Option to Request Additional Commitments
150.0 
 
 
Line of Credit Facility, Remaining Borrowing Capacity
154.4 
 
 
Construction in Progress, Gross
77.6 
 
288.3 
Gains (Losses) on Extinguishment of Debt
 
0.7 
 
Multicurrency Loans [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases
50.0 
 
 
Letter of Credit [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases
50.0 
 
 
Swingline Loan [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases
30.0 
 
 
Revolving Credit Facility [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
1.94% 
 
 
Minimum [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Line of Credit Facility, Commitment Fee Percentage
0.20% 
 
 
Minimum [Member] |
London Interbank Offered Rate (LIBOR) [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
1.25% 
 
 
Minimum [Member] |
Prime Rate [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
0.25% 
 
 
Maximum [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Line of Credit Facility, Commitment Fee Percentage
0.40% 
 
 
Maximum [Member] |
London Interbank Offered Rate (LIBOR) [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
2.25% 
 
 
Maximum [Member] |
Prime Rate [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Debt Instrument, Basis Spread on Variable Rate
1.25% 
 
 
Advanced Quench-and-Temper Facility [Member]
 
 
 
Debt Instrument [Line Items]
 
 
 
Construction in Progress, Gross
$ 3.7 
 
 
Accumulated Other Comprehensive Loss (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
 
 
$ (297.3)
$ (0.4)
Other Comprehensive Income (Loss) Assumed from Separation
 
 
 
(237.1)
Other comprehensive income before reclassifications, before income tax
 
 
(0.1)
0.4 
Amounts reclassified from accumulated other comprehensive income, before income tax
 
 
17.6 
4.6 
Income tax benefit
 
 
(6.4)
(1.7)
Net current period other comprehensive income, net of income tax
5.5 
3.5 
11.1 
3.3 
Accumulated Other Comprehensive Income (Loss), Net of Tax
(286.2)
(234.2)
(286.2)
(234.2)
Accumulated Translation Adjustment [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
 
 
(4.8)
(0.4)
Other Comprehensive Income (Loss) Assumed from Separation
 
 
 
(3.2)
Other comprehensive income before reclassifications, before income tax
 
 
0.4 
Amounts reclassified from accumulated other comprehensive income, before income tax
 
 
Income tax benefit
 
 
Net current period other comprehensive income, net of income tax
 
 
0.4 
Accumulated Other Comprehensive Income (Loss), Net of Tax
(4.8)
(3.2)
(4.8)
(3.2)
Accumulated Defined Benefit Plans Adjustment [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
 
 
(292.5)
Other Comprehensive Income (Loss) Assumed from Separation
 
 
 
(233.9)
Other comprehensive income before reclassifications, before income tax
 
 
(0.1)
Amounts reclassified from accumulated other comprehensive income, before income tax
 
 
17.6 
4.6 
Income tax benefit
 
 
(6.4)
(1.7)
Net current period other comprehensive income, net of income tax
 
 
11.1 
2.9 
Accumulated Other Comprehensive Income (Loss), Net of Tax
$ (281.4)
$ (231.0)
$ (281.4)
$ (231.0)
Changes in Equity (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
 
 
$ 748.1 
 
Net (Loss) Income
(24.3)
28.6 
(17.4)
62.3 
Pension and postretirement liability adjustment
 
 
11.1 
 
Stock-based compensation expense
 
 
4.8 
 
Dividends – $0.28 per share
 
 
(12.5)
 
Net transfer to Timken and subsidiaries
 
 
(0.5)
 
Stock option exercise activity
 
 
1.3 
 
Purchase of treasury shares
 
 
(2.9)
 
Issuance of treasury shares
 
 
 
Shares surrendered for taxes
 
 
(2.1)
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
729.9 
 
729.9 
 
Additional Paid-in Capital [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
 
 
1,050.7 
 
Net (Loss) Income
 
 
 
Pension and postretirement liability adjustment
 
 
 
Stock-based compensation expense
 
 
4.8 
 
Dividends – $0.28 per share
 
 
 
Net transfer to Timken and subsidiaries
 
 
(0.5)
 
Stock option exercise activity
 
 
1.3 
 
Purchase of treasury shares
 
 
 
Issuance of treasury shares
 
 
(5.5)
 
Shares surrendered for taxes
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
1,050.8 
 
1,050.8 
 
Retained Earnings [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
 
 
29.4 
 
Net (Loss) Income
 
 
(17.4)
 
Pension and postretirement liability adjustment
 
 
 
Stock-based compensation expense
 
 
 
Dividends – $0.28 per share
 
 
(12.5)
 
Net transfer to Timken and subsidiaries
 
 
 
Stock option exercise activity
 
 
 
Purchase of treasury shares
 
 
 
Issuance of treasury shares
 
 
 
Shares surrendered for taxes
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
(0.5)
 
(0.5)
 
Treasury Stock [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
 
 
(34.7)
 
Net (Loss) Income
 
 
 
Pension and postretirement liability adjustment
 
 
 
Stock-based compensation expense
 
 
 
Dividends – $0.28 per share
 
 
 
Net transfer to Timken and subsidiaries
 
 
 
Stock option exercise activity
 
 
 
Purchase of treasury shares
 
 
(2.9)
 
Issuance of treasury shares
 
 
5.5 
 
Shares surrendered for taxes
 
 
(2.1)
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
(34.2)
 
(34.2)
 
Accumulated Other Comprehensive Income (Loss) [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
 
 
(297.3)
 
Net (Loss) Income
 
 
 
Pension and postretirement liability adjustment
 
 
11.1 
 
Stock-based compensation expense
 
 
 
Dividends – $0.28 per share
 
 
 
Net transfer to Timken and subsidiaries
 
 
 
Stock option exercise activity
 
 
 
Purchase of treasury shares
 
 
 
Issuance of treasury shares
 
 
 
Shares surrendered for taxes
 
 
 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
$ (286.2)
 
$ (286.2)
 
Retirement and Postretirement Benefits (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pension Plan [Member]
 
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
 
Service cost
$ 4.1 
$ 2.6 
$ 8.3 
$ 2.6 
Interest cost
12.7 
7.8 
25.7 
7.8 
Expected return on plan assets
(19.9)
(12.1)
(38.7)
(12.1)
Amortization of prior service cost
(0.2)
(0.1)
(0.3)
(0.1)
Amortization of net actuarial loss
8.2 
4.4 
16.8 
4.4 
Allocated benefit cost from Timken
0.8 
5.2 
Net Periodic Benefit Cost
5.3 
3.6 
12.4 
8.0 
Other Postretirement Benefit Plan [Member]
 
 
 
 
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward]
 
 
 
 
Service cost
0.5 
0.3 
0.9 
0.3 
Interest cost
2.3 
1.6 
4.7 
1.6 
Expected return on plan assets
(1.7)
(1.1)
(3.4)
(1.1)
Amortization of prior service cost
(0.2)
(0.1)
(0.5)
(0.1)
Amortization of net actuarial loss
(0.1)
Allocated benefit cost from Timken
0.5 
2.2 
Net Periodic Benefit Cost
$ 1.2 
$ 1.4 
$ 2.7 
$ 3.1 
Earnings Per Share (Details) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
Net (loss) income for basic and diluted earnings per share
 
$ (24.3)
$ 28.6 
$ (17.4)
$ 62.3 
Weighted average shares outstanding, basic
 
44,779,016 
45,729,624 
44,776,190 
45,729,624 
Dilutive effect of stock-based awards
 
519,883 
519,883 
Weighted average shares outstanding, diluted
 
44,779,016 
46,249,507 
44,776,190 
46,249,507 
Basic (loss) earnings per share
 
$ (0.54)
$ 0.63 
$ (0.39)
$ 1.36 
Diluted (loss) earnings per share
 
$ (0.54)
$ 0.62 
$ (0.39)
$ 1.35 
Anti-dilutive Shares
 
2,000,000 
200,000 
2,000,000 
200,000 
Stock Issued During Period, Shares, New Issues
45,400,000 
 
 
 
 
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 278.2 
$ 442.2 
$ 666.9 
$ 831.7 
Segment EBIT
(39.8)
48.3 
(30.7)
103.8 
Unallocated
1.9 1
(3.2)1
4.0 1
(7.9)1
Interest Expense
(1.0)
(0.7)
(1.1)
(0.7)
Income Before Income Taxes
(38.9)
44.4 
(27.8)
95.2 
Industrial & Mobile [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
211.1 
254.7 
444.6 
486.5 
Segment EBIT
(18.8)
20.1 
(14.3)
47.4 
Energy & Distribution [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
67.1 
187.5 
222.3 
345.2 
Segment EBIT
$ (21.0)
$ 28.2 
$ (16.4)
$ 56.4 
Income Tax (Benefit) Provision (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Tax Disclosure [Abstract]
 
 
 
 
(Benefit) Provision for income taxes
$ (14.6)
$ 15.8 
$ (10.4)
$ 32.9 
Effective tax rate
37.50% 
35.60% 
37.40% 
34.60% 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent
35.00% 
35.00% 
35.00% 
35.00% 
Contingencies (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Loss Contingencies [Line Items]
 
Balance at December 31, 2014
$ 1.3 
Loss Contingency Accrual, Provision
Loss Contingency Accrual, Payments
(0.2)
Balance at June 30, 2015
$ 1.1 
Restructuring (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Restructuring Reserve [Roll Forward]
 
Balance at December 31, 2014
$ 0 
Restructuring Charges
1.6 
Payments for Restructuring
(0.6)
Balance at June 30, 2015
1.0 
Industrial & Mobile [Member]
 
Restructuring Reserve [Roll Forward]
 
Restructuring Charges
1.2 
Energy & Distribution [Member]
 
Restructuring Reserve [Roll Forward]
 
Restructuring Charges
$ 0.4