|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
2016 | 2015 | |||||||
Finished goods | $ | 71,100 | $ | 76,836 | ||||
Work-in-process | 98,246 | 77,061 | ||||||
Raw materials and supplies | 58,413 | 54,714 | ||||||
$ | 227,759 | $ | 208,611 |
|
2016 | 2015 | |||||||
Land | $ | 19,952 | $ | 19,153 | ||||
Buildings | 169,695 | 156,294 | ||||||
Machinery and equipment | 572,540 | 539,360 | ||||||
762,187 | 714,807 | |||||||
Less accumulated depreciation | (427,698 | ) | (405,951 | ) | ||||
$ | 334,489 | $ | 308,856 |
|
Industrial | Aerospace | Total Company | |||||||||
January 1, 2015 | $ | 564,163 | $ | 30,786 | $ | 594,949 | |||||
Acquisition-related | 22,798 | — | 22,798 | ||||||||
Foreign currency translation | (29,755 | ) | — | (29,755 | ) | ||||||
December 31, 2015 | 557,206 | 30,786 | 587,992 | ||||||||
Acquisition-related | 73,688 | — | 73,688 | ||||||||
Foreign currency translation | (28,244 | ) | — | (28,244 | ) | ||||||
December 31, 2016 | $ | 602,650 | $ | 30,786 | $ | 633,436 |
2016 | 2015 | |||||||||||||||||
Range of Life-Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | ||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Revenue Sharing Programs | Up to 30 | $ | 293,700 | $ | (95,701 | ) | $ | 293,700 | $ | (84,629 | ) | |||||||
Component Repair Program | Up to 30 | 111,839 | (10,497 | ) | 111,839 | (6,054 | ) | |||||||||||
Customer lists/relationships | 10-16 | 215,266 | (53,198 | ) | 194,566 | (41,786 | ) | |||||||||||
Patents and technology | 4-14 | 84,052 | (37,897 | ) | 69,352 | (29,551 | ) | |||||||||||
Trademarks/trade names | 10-30 | 11,950 | (9,967 | ) | 11,950 | (9,412 | ) | |||||||||||
Other | Up to 15 | 20,551 | (16,338 | ) | 20,551 | (15,413 | ) | |||||||||||
737,358 | (223,598 | ) | 701,958 | (186,845 | ) | |||||||||||||
Unamortized intangible asset: | ||||||||||||||||||
Trade names | 42,770 | — | 38,370 | — | ||||||||||||||
Foreign currency translation | (34,272 | ) | — | (25,161 | ) | — | ||||||||||||
Other intangible assets | $ | 745,856 | $ | (223,598 | ) | $ | 715,167 | $ | (186,845 | ) |
|
2016 | 2015 | |||||||
Payroll and other compensation | $ | 37,560 | $ | 27,186 | ||||
Deferred revenue and customer advances | 34,812 | 16,453 | ||||||
CRP Accrual | — | 4,100 | ||||||
Pension and other postretirement benefits | 8,261 | 8,444 | ||||||
Accrued income taxes | 26,477 | 25,682 | ||||||
Other | 49,857 | 49,455 | ||||||
$ | 156,967 | $ | 131,320 |
|
2016 | 2015 | |||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Revolving credit agreement | 363,300 | 364,775 | 379,700 | 375,188 | ||||||||||
3.97% Senior Notes | 100,000 | 101,598 | 100,000 | 102,484 | ||||||||||
Borrowings under lines of credit and overdrafts | 30,825 | 30,825 | 22,680 | 22,680 | ||||||||||
Capital leases | 5,413 | 5,902 | 7,105 | 7,503 | ||||||||||
Other foreign bank borrowings | 1,416 | 1,428 | 421 | 410 | ||||||||||
500,954 | 504,528 | 509,906 | 508,265 | |||||||||||
Less current maturities | (32,892 | ) | (24,195 | ) | ||||||||||
Long-term debt | $ | 468,062 | $ | 485,711 |
2014 | |||
Interest expense – 3.375% coupon | $ | 1,046 | |
Interest expense – 3.375% debt discount amortization | 731 | ||
$ | 1,777 |
|
|
2016 | 2015 | |||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Interest rate contracts | $ | — | $ | (78 | ) | $ | — | $ | (357 | ) | ||||||
Foreign exchange contracts | — | (177 | ) | 484 | — | |||||||||||
— | (255 | ) | 484 | (357 | ) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | 397 | (1,499 | ) | 215 | (101 | ) | ||||||||||
Total derivatives | $ | 397 | $ | (1,754 | ) | $ | 699 | $ | (458 | ) |
2016 | 2015 | |||||||
Cash flow hedges: | ||||||||
Interest rate contracts | $ | 174 | $ | (39 | ) | |||
Foreign exchange contracts | (516 | ) | 886 | |||||
$ | (342 | ) | $ | 847 |
2016 | 2015 | |||||||
Foreign exchange contracts | $ | 2,297 | $ | 8,215 |
|
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities. |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. |
Level 3 | Unobservable inputs for the asset or liability. |
Fair Value Measurements Using | ||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
December 31, 2016 | ||||||||||||||||
Asset derivatives | $ | 397 | $ | — | $ | 397 | $ | — | ||||||||
Liability derivatives | (1,754 | ) | — | (1,754 | ) | — | ||||||||||
Bank acceptances | 9,690 | — | 9,690 | — | ||||||||||||
Rabbi trust assets | 2,216 | 2,216 | — | — | ||||||||||||
$ | 10,549 | $ | 2,216 | $ | 8,333 | $ | — | |||||||||
December 31, 2015 | ||||||||||||||||
Asset derivatives | $ | 699 | $ | — | $ | 699 | $ | — | ||||||||
Liability derivatives | (458 | ) | — | (458 | ) | — | ||||||||||
Bank acceptances | 10,823 | — | 10,823 | — | ||||||||||||
Rabbi trust assets | 2,159 | 2,159 | — | — | ||||||||||||
$ | 13,223 | $ | 2,159 | $ | 11,064 | $ | — |
|
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Benefit obligation, January 1 | $ | 385,629 | $ | 75,406 | $ | 461,035 | $ | 433,079 | $ | 80,305 | $ | 513,384 | ||||||||||||
Service cost | 3,892 | 1,503 | 5,395 | 4,160 | 1,348 | 5,508 | ||||||||||||||||||
Interest cost | 17,523 | 1,971 | 19,494 | 17,967 | 2,052 | 20,019 | ||||||||||||||||||
Amendments | 2,405 | (174 | ) | 2,231 | — | (463 | ) | (463 | ) | |||||||||||||||
Actuarial loss (gain) | 6,661 | 10,814 | 17,475 | (16,622 | ) | (2,288 | ) | (18,910 | ) | |||||||||||||||
Benefits paid | (26,497 | ) | (4,691 | ) | (31,188 | ) | (52,490 | ) | (4,244 | ) | (56,734 | ) | ||||||||||||
Transfers in | — | 25,968 | 25,968 | — | 3,951 | 3,951 | ||||||||||||||||||
Plan curtailments | — | — | — | (465 | ) | — | (465 | ) | ||||||||||||||||
Plan settlements | — | — | — | — | (375 | ) | (375 | ) | ||||||||||||||||
Participant contributions | — | 1,444 | 1,444 | — | 368 | 368 | ||||||||||||||||||
Foreign exchange rate changes | — | (7,902 | ) | (7,902 | ) | — | (5,248 | ) | (5,248 | ) | ||||||||||||||
Benefit obligation, December 31 | 389,613 | 104,339 | 493,952 | 385,629 | 75,406 | 461,035 | ||||||||||||||||||
Fair value of plan assets, January 1 | 326,829 | 68,553 | 395,382 | 380,937 | 71,750 | 452,687 | ||||||||||||||||||
Actual return on plan assets | 13,051 | 7,276 | 20,327 | (5,045 | ) | 1,264 | (3,781 | ) | ||||||||||||||||
Company contributions | 17,877 | 2,224 | 20,101 | 3,427 | 1,100 | 4,527 | ||||||||||||||||||
Participant contributions | — | 1,444 | 1,444 | — | 368 | 368 | ||||||||||||||||||
Benefits paid | (26,497 | ) | (4,691 | ) | (31,188 | ) | (52,490 | ) | (4,244 | ) | (56,734 | ) | ||||||||||||
Plan settlements | — | — | — | — | (376 | ) | (376 | ) | ||||||||||||||||
Transfers in | — | 18,320 | 18,320 | — | 3,434 | 3,434 | ||||||||||||||||||
Foreign exchange rate changes | — | (7,474 | ) | (7,474 | ) | — | (4,743 | ) | (4,743 | ) | ||||||||||||||
Fair value of plan assets, December 31 | 331,260 | 85,652 | 416,912 | 326,829 | 68,553 | 395,382 | ||||||||||||||||||
Underfunded status, December 31 | $ | (58,353 | ) | $ | (18,687 | ) | $ | (77,040 | ) | $ | (58,800 | ) | $ | (6,853 | ) | $ | (65,653 | ) |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Projected benefit obligation | $ | 389,613 | $ | 61,060 | $ | 450,673 | $ | 271,459 | $ | 31,613 | $ | 303,072 | ||||||||||||
Fair value of plan assets | 331,260 | 39,356 | 370,616 | 204,270 | 20,199 | 224,469 |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Projected benefit obligation | $ | 389,613 | $ | 61,014 | $ | 450,627 | $ | 271,459 | $ | 30,560 | $ | 302,019 | ||||||||||||
Accumulated benefit obligation | 378,431 | 59,568 | 437,999 | 262,172 | 26,998 | 289,170 | ||||||||||||||||||
Fair value of plan assets | 331,260 | 39,356 | 370,616 | 204,270 | 19,256 | 223,526 |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Other assets | $ | — | $ | 3,017 | $ | 3,017 | $ | 8,389 | $ | 4,561 | $ | 12,950 | ||||||||||||
Accrued liabilities | 2,813 | 367 | 3,180 | 2,806 | 379 | 3,185 | ||||||||||||||||||
Accrued retirement benefits | 55,540 | 21,337 | 76,877 | 64,383 | 11,035 | 75,418 | ||||||||||||||||||
Accumulated other non-owner changes to equity, net | (91,530 | ) | (19,458 | ) | (110,988 | ) | (83,014 | ) | (16,812 | ) | (99,826 | ) |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Net actuarial loss | $ | (89,772 | ) | $ | (19,822 | ) | $ | (109,594 | ) | $ | (82,643 | ) | $ | (16,999 | ) | $ | (99,642 | ) | ||||||
Prior service costs | (1,758 | ) | 364 | (1,394 | ) | (371 | ) | 187 | (184 | ) | ||||||||||||||
$ | (91,530 | ) | $ | (19,458 | ) | $ | (110,988 | ) | $ | (83,014 | ) | $ | (16,812 | ) | $ | (99,826 | ) |
2016 | 2015 | |||||||
Benefit obligation, January 1 | $ | 41,706 | $ | 46,814 | ||||
Service cost | 122 | 145 | ||||||
Interest cost | 1,766 | 1,836 | ||||||
Actuarial gain | (3,495 | ) | (2,521 | ) | ||||
Benefits paid | (5,621 | ) | (6,970 | ) | ||||
Participant contributions | 2,281 | 2,486 | ||||||
Foreign exchange rate changes | 94 | (84 | ) | |||||
Benefit obligation, December 31 | 36,853 | 41,706 | ||||||
Fair value of plan assets, January 1 | — | — | ||||||
Company contributions | 3,340 | 4,484 | ||||||
Participant contributions | 2,281 | 2,486 | ||||||
Benefits paid | (5,621 | ) | (6,970 | ) | ||||
Fair value of plan assets, December 31 | — | — | ||||||
Underfunded status, December 31 | $ | 36,853 | $ | 41,706 |
2016 | 2015 | |||||||
Accrued liabilities | $ | 5,081 | $ | 5,259 | ||||
Accrued retirement benefits | 31,772 | 36,447 | ||||||
Accumulated other non-owner changes to equity, net | (3,582 | ) | (5,877 | ) |
2016 | 2015 | |||||||
Net actuarial loss | $ | (3,532 | ) | $ | (6,061 | ) | ||
Prior service credits | (50 | ) | 184 | |||||
$ | (3,582 | ) | $ | (5,877 | ) |
Pension | Other Postretirement Benefits | |||||||
Prior service cost | $ | (1,334 | ) | $ | — | |||
Net (loss) gain | (18,378 | ) | 2,194 | |||||
Amortization of prior service costs (credits) | 142 | (234 | ) | |||||
Amortization of actuarial loss | 7,030 | 332 | ||||||
Foreign exchange rate changes | 1,378 | 3 | ||||||
$ | (11,162 | ) | $ | 2,295 |
2016 | 2015 | |||||
U.S. plans: | ||||||
Discount rate | 4.50 | % | 4.65 | % | ||
Increase in compensation | 2.56 | % | 3.71 | % | ||
Non-U.S. plans: | ||||||
Discount rate | 1.60 | % | 2.80 | % | ||
Increase in compensation | 2.29 | % | 2.71 | % |
Fair Value Measurements Using | ||||||||||||||||
Asset Category | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
December 31, 2016 | ||||||||||||||||
Cash and short-term investments | $ | 3,207 | $ | 3,207 | $ | — | $ | — | ||||||||
Equity securities: | ||||||||||||||||
U.S. large-cap | 39,162 | — | 39,162 | — | ||||||||||||
U.S. mid-cap | 12,724 | 12,724 | — | — | ||||||||||||
U.S. small-cap | 19,551 | 19,551 | — | — | ||||||||||||
International equities | 135,514 | — | 135,514 | — | ||||||||||||
Global equity | 47,445 | 47,445 | — | — | ||||||||||||
Fixed income securities: | ||||||||||||||||
U.S. bond funds | 103,399 | — | 103,399 | — | ||||||||||||
International bonds | 53,783 | — | 53,783 | — | ||||||||||||
Other | 2,127 | — | — | 2,127 | ||||||||||||
$ | 416,912 | $ | 82,927 | $ | 331,858 | $ | 2,127 | |||||||||
December 31, 2015 | ||||||||||||||||
Cash and short-term investments | 18,795 | 18,795 | — | — | ||||||||||||
Equity securities: | ||||||||||||||||
U.S. large-cap | 67,274 | 28,190 | 39,084 | — | ||||||||||||
U.S. mid-cap | 38,790 | 38,790 | — | — | ||||||||||||
U.S. small-cap | 38,248 | 38,248 | — | — | ||||||||||||
International equities | 91,563 | — | 91,563 | — | ||||||||||||
Global equity | 17,928 | 17,928 | ||||||||||||||
Fixed income securities: | ||||||||||||||||
U.S. bond funds | 84,645 | — | 84,645 | — | ||||||||||||
International bonds | 36,282 | — | 36,282 | — | ||||||||||||
Other | 1,857 | — | — | 1,857 | ||||||||||||
$ | 395,382 | $ | 141,951 | $ | 251,574 | $ | 1,857 |
Pensions | Other Postretirement Benefits | |||||||
2017 | $ | 28,703 | $ | 3,983 | ||||
2018 | 28,577 | 3,352 | ||||||
2019 | 28,878 | 3,176 | ||||||
2020 | 28,810 | 3,294 | ||||||
2021 | 28,994 | 3,095 | ||||||
Years 2022-2026 | 144,566 | 12,906 | ||||||
Total | $ | 288,528 | $ | 29,806 |
Pensions | Other Postretirement Benefits | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | 5,395 | $ | 5,508 | $ | 4,546 | $ | 122 | $ | 145 | $ | 139 | ||||||||||||
Interest cost | 19,494 | 20,019 | 22,026 | 1,766 | 1,836 | 2,179 | ||||||||||||||||||
Expected return on plan assets | (30,302 | ) | (32,404 | ) | (34,232 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost (credit) | 210 | 305 | 648 | (373 | ) | (564 | ) | (871 | ) | |||||||||||||||
Recognized losses | 10,791 | 15,004 | 8,617 | 535 | 1,011 | 1,017 | ||||||||||||||||||
Curtailment loss (gain) | — | — | 219 | — | — | 4 | ||||||||||||||||||
Settlement loss | — | 9,939 | 871 | — | — | — | ||||||||||||||||||
Special termination benefits | — | — | 715 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 5,588 | $ | 18,371 | $ | 3,410 | $ | 2,050 | $ | 2,428 | $ | 2,468 |
2016 | 2015 | 2014 | |||||||
U.S. plans: | |||||||||
Discount rate | 4.65 | % | 4.25 | % | 5.20 | % | |||
Long-term rate of return | 8.25 | % | 8.25 | % | 9.00 | % | |||
Increase in compensation | 3.71 | % | 3.71 | % | 3.72 | % | |||
Non-U.S. plans: | |||||||||
Discount rate | 2.80 | % | 2.74 | % | 3.93 | % | |||
Long-term rate of return | 4.73 | % | 5.00 | % | 5.07 | % | |||
Increase in compensation | 2.71 | % | 2.72 | % | 2.76 | % |
One Percentage Point Increase | One Percentage Point Decrease | |||||||
Effect on postretirement benefit obligation | $ | 319 | $ | (295 | ) | |||
Effect on postretirement benefit cost | 14 | (13 | ) |
Contributions by the Company | |||||||||||
Pension Fund: | 2016 | 2015 | 2014 | ||||||||
Swedish Pension Plan (ITP2) | 673 | $ | 343 | $ | 379 | ||||||
Total Contributions | $ | 673 | $ | 343 | $ | 379 |
|
Number of Shares | Weighted-Average Exercise Price | ||||||
Outstanding, January 1, 2016 | 644,072 | $ | 25.63 | ||||
Granted | 167,105 | 31.34 | |||||
Exercised | (203,517 | ) | 20.56 | ||||
Forfeited | (18,500 | ) | 36.22 | ||||
Outstanding, December 31, 2016 | 589,160 | 28.67 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number of Shares | Average Remaining Life (Years) | Average Exercise Price | Number of Shares | Average Exercise Price | |||||||||||
$11.45 to $15.83 | 87,690 | 2.58 | $ | 13.48 | 87,690 | $ | 13.48 | |||||||||
$20.69 to $24.24 | 76,584 | 5.10 | 22.65 | 76,584 | 22.65 | |||||||||||
$26.32 to $30.71 | 214,312 | 7.49 | 29.27 | 72,312 | 26.43 | |||||||||||
$33.45 to $38.96 | 210,574 | 7.91 | 36.57 | 82,350 | 36.83 |
2016 | 2015 | 2014 | |||||||
Risk-free interest rate | 1.20 | % | 1.58 | % | 1.68 | % | |||
Expected life (years) | 5.3 | 5.3 | 5.3 | ||||||
Expected volatility | 29.1 | % | 31.1 | % | 42.6 | % | |||
Expected dividend yield | 1.94 | % | 2.06 | % | 2.24 | % |
Options Outstanding, Expected to Vest | Options Outstanding, Exercisable | ||||||||||||||||||||||
Shares | Weighted- Average Exercise Price | Aggregate Intrinsic Value | Weighted- Average Remaining Term (Years) | Shares | Weighted- Average Exercise Price | Aggregate Intrinsic Value | Weighted- Average Remaining Term (Years) | ||||||||||||||||
568,820 | $ | 28.67 | $ | 10,667 | 6.60 | 318,936 | $ | 24.65 | $ | 7,263 | 4.85 |
Service Based Rights | Service and Performance Based Rights | Service and Market Based Rights | |||||||||||||||||||
Number of Units | Weighted-Average Grant Date Fair Value | Number of Units | Weighted-Average Grant Date Fair Value | Number of Units | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Outstanding, January 1, 2016 | 401,706 | $ | 30.51 | 214,426 | $ | 31.29 | 107,213 | $ | 48.37 | ||||||||||||
Granted | 154,903 | 32.22 | 62,070 | 31.32 | 62,069 | 48.84 | |||||||||||||||
Forfeited | (16,138 | ) | 34.23 | (6,333 | ) | 37.61 | (3,476 | ) | 31.46 | ||||||||||||
Additional Earned | — | — | 35,653 | 24.55 | 29,937 | 24.18 | |||||||||||||||
Issued | (193,167 | ) | 34.53 | (133,774 | ) | 24.55 | (78,997 | ) | 24.18 | ||||||||||||
Outstanding, December 31, 2016 | 347,304 | 172,042 | 116,746 |
|
2016 | 2015 | 2014 | ||||||||||
Income from continuing operations before income taxes: | ||||||||||||
U.S. | $ | 34,129 | $ | 11,525 | $ | 33,070 | ||||||
International | 148,492 | 146,421 | 133,430 | |||||||||
Income from continuing operations before income taxes | $ | 182,621 | $ | 157,946 | $ | 166,500 | ||||||
Income tax provision: | ||||||||||||
Current: | ||||||||||||
U.S. – federal | $ | 7,215 | $ | (210 | ) | $ | 22,673 | |||||
U.S. – state | 755 | 2,019 | 1,236 | |||||||||
International | 41,516 | 32,217 | 35,954 | |||||||||
49,486 | 34,026 | 59,863 | ||||||||||
Deferred: | ||||||||||||
U.S. – federal | $ | 6,091 | $ | 7,670 | $ | (6,737 | ) | |||||
U.S. – state | 1,060 | (1,137 | ) | 1,279 | ||||||||
International | (9,617 | ) | (3,993 | ) | (8,446 | ) | ||||||
(2,466 | ) | 2,540 | (13,904 | ) | ||||||||
Income taxes | $ | 47,020 | $ | 36,566 | $ | 45,959 |
2016 | 2015 | |||||||
Deferred tax assets: | ||||||||
Pension | $ | 27,410 | $ | 25,331 | ||||
Tax loss carryforwards | 16,686 | 15,330 | ||||||
Inventory valuation | 15,518 | 15,938 | ||||||
Other postretirement/postemployment costs | 14,071 | 15,753 | ||||||
Accrued Compensation | 10,121 | 10,242 | ||||||
Other | 6,489 | 5,880 | ||||||
Valuation allowance | (14,957 | ) | (14,401 | ) | ||||
Total deferred tax assets | 75,338 | 74,073 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | (89,198 | ) | (81,158 | ) | ||||
Goodwill | (14,871 | ) | (14,545 | ) | ||||
Other | (12,282 | ) | (16,313 | ) | ||||
Total deferred tax liabilities | (116,351 | ) | (112,016 | ) | ||||
Net deferred tax liabilities | $ | (41,013 | ) | $ | (37,943 | ) |
2016 | 2015 | |||||||
Current deferred tax assets | $ | — | $ | 24,825 | ||||
Non-current deferred tax assets | 25,433 | 1,139 | ||||||
Current deferred tax liabilities (included in accrued liabilities) | — | (1,543 | ) | |||||
Non-current deferred tax liabilities | (66,446 | ) | (62,364 | ) | ||||
Net deferred tax liabilities | $ | (41,013 | ) | $ | (37,943 | ) |
2016 | 2015 | 2014 | |||||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State taxes (net of federal benefit) | 0.4 | 0.2 | 0.5 | ||||||
Foreign losses without tax benefit | 0.7 | 1.1 | 1.1 | ||||||
Foreign operations taxed at lower rates | (10.9 | ) | (12.9 | ) | (9.9 | ) | |||
Repatriation from current year foreign earnings | 1.6 | 4.3 | 2.6 | ||||||
Tax withholding refund | — | (1.9 | ) | — | |||||
Tax Holidays | (1.2 | ) | (3.2 | ) | (2.7 | ) | |||
Stock awards excess tax benefit | (1.2 | ) | — | — | |||||
Other | 1.3 | 0.6 | 1.0 | ||||||
Consolidated effective income tax rate | 25.7 | % | 23.2 | % | 27.6 | % |
2016 | 2015 | 2014 | ||||||||||
Balance at January 1 | $ | 10,634 | $ | 8,560 | $ | 8,027 | ||||||
Increase (decrease) in unrecognized tax benefits due to: | ||||||||||||
Tax positions taken during prior periods | — | 1,691 | 533 | |||||||||
Tax positions taken during the current period | 117 | — | — | |||||||||
Acquisition | 2,569 | 598 | — | |||||||||
Lapse of the applicable statute of limitations | — | (215 | ) | — | ||||||||
Balance at December 31 | $ | 13,320 | $ | 10,634 | $ | 8,560 |
|
|
|
|
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2016 | $ | 115 | $ | (105,703 | ) | $ | (37,664 | ) | $ | (143,252 | ) | ||||
Other comprehensive loss before reclassifications to consolidated statements of income | (739 | ) | (16,137 | ) | (48,367 | ) | (65,243 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 397 | 7,270 | — | 7,667 | |||||||||||
Net current-period other comprehensive loss | (342 | ) | (8,867 | ) | (48,367 | ) | (57,576 | ) | |||||||
December 31, 2016 | $ | (227 | ) | $ | (114,570 | ) | $ | (86,031 | ) | $ | (200,828 | ) | |||
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2015 | $ | (732 | ) | $ | (115,289 | ) | $ | 16,568 | $ | (99,453 | ) | ||||
Other comprehensive loss before reclassifications to consolidated statements of income | (70 | ) | (6,921 | ) | (54,232 | ) | (61,223 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 917 | 16,507 | — | 17,424 | |||||||||||
Net current-period other comprehensive income (loss) | 847 | 9,586 | (54,232 | ) | (43,799 | ) | |||||||||
December 31, 2015 | $ | 115 | $ | (105,703 | ) | $ | (37,664 | ) | $ | (143,252 | ) |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||
2016 | 2015 | |||||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate contracts | $ | (557 | ) | $ | (853 | ) | Interest expense | |||
Foreign exchange contracts | (61 | ) | (490 | ) | Net sales | |||||
(618 | ) | (1,343 | ) | Total before tax | ||||||
221 | 426 | Tax benefit | ||||||||
(397 | ) | (917 | ) | Net of tax | ||||||
Pension and other postretirement benefit items | ||||||||||
Amortization of prior-service credits, net | $ | 163 | $ | 259 | (A) | |||||
Amortization of actuarial losses | (11,326 | ) | (16,015 | ) | (A) | |||||
Settlement loss | — | (9,939 | ) | (A) | ||||||
(11,163 | ) | (25,695 | ) | Total before tax | ||||||
3,893 | 9,188 | Tax benefit | ||||||||
(7,270 | ) | (16,507 | ) | Net of tax | ||||||
Total reclassifications in the period | $ | (7,667 | ) | $ | (17,424 | ) |
|
Industrial | Aerospace | Other | Total Company | |||||||||||||
Sales | ||||||||||||||||
2016 | $ | 824.2 | $ | 406.5 | $ | — | $ | 1,230.8 | ||||||||
2015 | 782.3 | 411.7 | — | 1,194.0 | ||||||||||||
2014 | 822.1 | 440.0 | — | 1,262.0 | ||||||||||||
Operating profit | ||||||||||||||||
2016 | $ | 129.7 | $ | 62.5 | $ | — | $ | 192.2 | ||||||||
2015 | 103.0 | 65.4 | — | 168.4 | ||||||||||||
2014 | 108.4 | 71.6 | — | 180.0 | ||||||||||||
Assets | ||||||||||||||||
2016 | $ | 1,356.1 | $ | 647.8 | $ | 133.7 | $ | 2,137.5 | ||||||||
2015 | 1,241.2 | 654.1 | 166.5 | 2,061.9 | ||||||||||||
2014 | 1,282.0 | 655.0 | 136.9 | 2,073.9 | ||||||||||||
Depreciation and amortization | ||||||||||||||||
2016 | $ | 49.5 | $ | 30.0 | $ | 0.7 | $ | 80.2 | ||||||||
2015 | 46.0 | 30.8 | 1.3 | 78.2 | ||||||||||||
2014 | 54.7 | 24.9 | 1.8 | 81.4 | ||||||||||||
Capital expenditures | ||||||||||||||||
2016 | $ | 25.9 | $ | 21.1 | $ | 0.5 | $ | 47.6 | ||||||||
2015 | 28.7 | 17.2 | 0.1 | 46.0 | ||||||||||||
2014 | 36.1 | 20.9 | 0.4 | 57.4 |
2016 | 2015 | 2014 | ||||||||||
Operating profit | $ | 192.2 | $ | 168.4 | $ | 180.0 | ||||||
Interest expense | 11.9 | 10.7 | 11.4 | |||||||||
Other expense (income), net | (2.3 | ) | (0.2 | ) | 2.1 | |||||||
Income from continuing operations before income taxes | $ | 182.6 | $ | 157.9 | $ | 166.5 |
2016 | 2015 | 2014 | ||||||||||
Engineered Components Products | $ | 332.6 | $ | 342.2 | $ | 373.1 | ||||||
Molding Solutions Products | 376.6 | 324.6 | 322.7 | |||||||||
Nitrogen Gas Products | 115.0 | 115.5 | 126.2 | |||||||||
Aerospace Original Equipment Manufacturing Products | 288.4 | 295.7 | 329.6 | |||||||||
Aerospace Aftermarket Products and Services | 118.2 | 116.0 | 110.4 | |||||||||
Total net sales | $ | 1,230.8 | $ | 1,194.0 | $ | 1,262.0 |
Domestic | International | Other | Total Company | ||||||||||||||
Sales | |||||||||||||||||
2016 | $ | 562.6 | $ | 727.4 | $ | (59.2 | ) | $ | 1,230.8 | ||||||||
2015 | 589.6 | 661.7 | (57.3 | ) | 1,194.0 | ||||||||||||
2014 | 618.9 | 677.6 | (34.5 | ) | 1,262.0 | ||||||||||||
Long-lived assets | |||||||||||||||||
2016 | $ | 368.2 | $ | 1,135.5 | $ | — | $ | 1,503.6 | |||||||||
2015 | 379.2 | 1,069.9 | — | 1,449.1 | |||||||||||||
2014 | 380.6 | 1,094.9 | — | 1,475.4 |
|
|
|
Allowances for Doubtful Accounts: | |||
Balance January 1, 2014 | $ | 3,438 | |
Provision charged to income | 1,523 | ||
Doubtful accounts written off | (493 | ) | |
Other adjustments(1) | (595 | ) | |
Balance December 31, 2014 | 3,873 | ||
Provision charged to income | 1,248 | ||
Doubtful accounts written off | (404 | ) | |
Other adjustments(1) | (632 | ) | |
Balance December 31, 2015 | 4,085 | ||
Provision charged to income | 863 | ||
Doubtful accounts written off | (910 | ) | |
Other adjustments(1) | (46 | ) | |
Balance December 31, 2016 | $ | 3,992 |
(1) | These amounts are comprised primarily of foreign currency translation and other reclassifications. |
Valuation Allowance on Deferred Tax Assets: | |||
Balance January 1, 2014 | $ | 18,873 | |
Additions charged to income tax expense | 1,049 | ||
Additions charged to other comprehensive income | (30 | ) | |
Reductions credited to income tax expense | (2,303 | ) | |
Changes due to foreign currency translation | (1,733 | ) | |
Balance December 31, 2014 | 15,856 | ||
Additions charged to income tax expense | 1,043 | ||
Reductions charged to other comprehensive income | (59 | ) | |
Reductions credited to income tax expense | (1,216 | ) | |
Changes due to foreign currency translation | (2,204 | ) | |
Acquisitions(1) | 981 | ||
Balance December 31, 2015 | 14,401 | ||
Additions charged to income tax expense | 759 | ||
Reductions charged to other comprehensive income | (17 | ) | |
Reductions credited to income tax expense(2) | (5,638 | ) | |
Changes due to foreign currency translation | (133 | ) | |
Acquisition(3) | 5,585 | ||
Balance December 31, 2016 | $ | 14,957 |
(1) | The increase in 2015 reflects the valuation allowances recorded at the Thermoplay and Priamus businesses which were acquired in the third and fourth quarters of 2015, respectively. |
(2) | The reductions in 2016 relate primarily to net operating losses that were fully valued. These net operating losses have subsequently expired during 2016 (lapse of applicable carry forward periods) and the corresponding valuation allowance was reduced accordingly. |
(3) | The increase in 2016 reflects the valuation allowance recorded at the FOBOHA business, which was acquired in the third quarter of 2016. |
|
|
|
2016 | 2015 | |||||||
Finished goods | $ | 71,100 | $ | 76,836 | ||||
Work-in-process | 98,246 | 77,061 | ||||||
Raw materials and supplies | 58,413 | 54,714 | ||||||
$ | 227,759 | $ | 208,611 |
|
2016 | 2015 | |||||||
Land | $ | 19,952 | $ | 19,153 | ||||
Buildings | 169,695 | 156,294 | ||||||
Machinery and equipment | 572,540 | 539,360 | ||||||
762,187 | 714,807 | |||||||
Less accumulated depreciation | (427,698 | ) | (405,951 | ) | ||||
$ | 334,489 | $ | 308,856 |
|
Industrial | Aerospace | Total Company | |||||||||
January 1, 2015 | $ | 564,163 | $ | 30,786 | $ | 594,949 | |||||
Acquisition-related | 22,798 | — | 22,798 | ||||||||
Foreign currency translation | (29,755 | ) | — | (29,755 | ) | ||||||
December 31, 2015 | 557,206 | 30,786 | 587,992 | ||||||||
Acquisition-related | 73,688 | — | 73,688 | ||||||||
Foreign currency translation | (28,244 | ) | — | (28,244 | ) | ||||||
December 31, 2016 | $ | 602,650 | $ | 30,786 | $ | 633,436 |
2016 | 2015 | |||||||||||||||||
Range of Life-Years | Gross Amount | Accumulated Amortization | Gross Amount | Accumulated Amortization | ||||||||||||||
Amortized intangible assets: | ||||||||||||||||||
Revenue Sharing Programs | Up to 30 | $ | 293,700 | $ | (95,701 | ) | $ | 293,700 | $ | (84,629 | ) | |||||||
Component Repair Program | Up to 30 | 111,839 | (10,497 | ) | 111,839 | (6,054 | ) | |||||||||||
Customer lists/relationships | 10-16 | 215,266 | (53,198 | ) | 194,566 | (41,786 | ) | |||||||||||
Patents and technology | 4-14 | 84,052 | (37,897 | ) | 69,352 | (29,551 | ) | |||||||||||
Trademarks/trade names | 10-30 | 11,950 | (9,967 | ) | 11,950 | (9,412 | ) | |||||||||||
Other | Up to 15 | 20,551 | (16,338 | ) | 20,551 | (15,413 | ) | |||||||||||
737,358 | (223,598 | ) | 701,958 | (186,845 | ) | |||||||||||||
Unamortized intangible asset: | ||||||||||||||||||
Trade names | 42,770 | — | 38,370 | — | ||||||||||||||
Foreign currency translation | (34,272 | ) | — | (25,161 | ) | — | ||||||||||||
Other intangible assets | $ | 745,856 | $ | (223,598 | ) | $ | 715,167 | $ | (186,845 | ) |
|
2016 | 2015 | |||||||
Payroll and other compensation | $ | 37,560 | $ | 27,186 | ||||
Deferred revenue and customer advances | 34,812 | 16,453 | ||||||
CRP Accrual | — | 4,100 | ||||||
Pension and other postretirement benefits | 8,261 | 8,444 | ||||||
Accrued income taxes | 26,477 | 25,682 | ||||||
Other | 49,857 | 49,455 | ||||||
$ | 156,967 | $ | 131,320 |
|
2016 | 2015 | |||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Revolving credit agreement | 363,300 | 364,775 | 379,700 | 375,188 | ||||||||||
3.97% Senior Notes | 100,000 | 101,598 | 100,000 | 102,484 | ||||||||||
Borrowings under lines of credit and overdrafts | 30,825 | 30,825 | 22,680 | 22,680 | ||||||||||
Capital leases | 5,413 | 5,902 | 7,105 | 7,503 | ||||||||||
Other foreign bank borrowings | 1,416 | 1,428 | 421 | 410 | ||||||||||
500,954 | 504,528 | 509,906 | 508,265 | |||||||||||
Less current maturities | (32,892 | ) | (24,195 | ) | ||||||||||
Long-term debt | $ | 468,062 | $ | 485,711 |
2014 | |||
Interest expense – 3.375% coupon | $ | 1,046 | |
Interest expense – 3.375% debt discount amortization | 731 | ||
$ | 1,777 |
|
2016 | 2015 | |||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | |||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||
Interest rate contracts | $ | — | $ | (78 | ) | $ | — | $ | (357 | ) | ||||||
Foreign exchange contracts | — | (177 | ) | 484 | — | |||||||||||
— | (255 | ) | 484 | (357 | ) | |||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||
Foreign exchange contracts | 397 | (1,499 | ) | 215 | (101 | ) | ||||||||||
Total derivatives | $ | 397 | $ | (1,754 | ) | $ | 699 | $ | (458 | ) |
2016 | 2015 | |||||||
Cash flow hedges: | ||||||||
Interest rate contracts | $ | 174 | $ | (39 | ) | |||
Foreign exchange contracts | (516 | ) | 886 | |||||
$ | (342 | ) | $ | 847 |
2016 | 2015 | |||||||
Foreign exchange contracts | $ | 2,297 | $ | 8,215 |
|
Fair Value Measurements Using | ||||||||||||||||
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
December 31, 2016 | ||||||||||||||||
Asset derivatives | $ | 397 | $ | — | $ | 397 | $ | — | ||||||||
Liability derivatives | (1,754 | ) | — | (1,754 | ) | — | ||||||||||
Bank acceptances | 9,690 | — | 9,690 | — | ||||||||||||
Rabbi trust assets | 2,216 | 2,216 | — | — | ||||||||||||
$ | 10,549 | $ | 2,216 | $ | 8,333 | $ | — | |||||||||
December 31, 2015 | ||||||||||||||||
Asset derivatives | $ | 699 | $ | — | $ | 699 | $ | — | ||||||||
Liability derivatives | (458 | ) | — | (458 | ) | — | ||||||||||
Bank acceptances | 10,823 | — | 10,823 | — | ||||||||||||
Rabbi trust assets | 2,159 | 2,159 | — | — | ||||||||||||
$ | 13,223 | $ | 2,159 | $ | 11,064 | $ | — |
|
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Projected benefit obligation | $ | 389,613 | $ | 61,060 | $ | 450,673 | $ | 271,459 | $ | 31,613 | $ | 303,072 | ||||||||||||
Fair value of plan assets | 331,260 | 39,356 | 370,616 | 204,270 | 20,199 | 224,469 |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Projected benefit obligation | $ | 389,613 | $ | 61,014 | $ | 450,627 | $ | 271,459 | $ | 30,560 | $ | 302,019 | ||||||||||||
Accumulated benefit obligation | 378,431 | 59,568 | 437,999 | 262,172 | 26,998 | 289,170 | ||||||||||||||||||
Fair value of plan assets | 331,260 | 39,356 | 370,616 | 204,270 | 19,256 | 223,526 |
Pension | Other Postretirement Benefits | |||||||
Prior service cost | $ | (1,334 | ) | $ | — | |||
Net (loss) gain | (18,378 | ) | 2,194 | |||||
Amortization of prior service costs (credits) | 142 | (234 | ) | |||||
Amortization of actuarial loss | 7,030 | 332 | ||||||
Foreign exchange rate changes | 1,378 | 3 | ||||||
$ | (11,162 | ) | $ | 2,295 |
2016 | 2015 | |||||
U.S. plans: | ||||||
Discount rate | 4.50 | % | 4.65 | % | ||
Increase in compensation | 2.56 | % | 3.71 | % | ||
Non-U.S. plans: | ||||||
Discount rate | 1.60 | % | 2.80 | % | ||
Increase in compensation | 2.29 | % | 2.71 | % |
Fair Value Measurements Using | ||||||||||||||||
Asset Category | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
December 31, 2016 | ||||||||||||||||
Cash and short-term investments | $ | 3,207 | $ | 3,207 | $ | — | $ | — | ||||||||
Equity securities: | ||||||||||||||||
U.S. large-cap | 39,162 | — | 39,162 | — | ||||||||||||
U.S. mid-cap | 12,724 | 12,724 | — | — | ||||||||||||
U.S. small-cap | 19,551 | 19,551 | — | — | ||||||||||||
International equities | 135,514 | — | 135,514 | — | ||||||||||||
Global equity | 47,445 | 47,445 | — | — | ||||||||||||
Fixed income securities: | ||||||||||||||||
U.S. bond funds | 103,399 | — | 103,399 | — | ||||||||||||
International bonds | 53,783 | — | 53,783 | — | ||||||||||||
Other | 2,127 | — | — | 2,127 | ||||||||||||
$ | 416,912 | $ | 82,927 | $ | 331,858 | $ | 2,127 | |||||||||
December 31, 2015 | ||||||||||||||||
Cash and short-term investments | 18,795 | 18,795 | — | — | ||||||||||||
Equity securities: | ||||||||||||||||
U.S. large-cap | 67,274 | 28,190 | 39,084 | — | ||||||||||||
U.S. mid-cap | 38,790 | 38,790 | — | — | ||||||||||||
U.S. small-cap | 38,248 | 38,248 | — | — | ||||||||||||
International equities | 91,563 | — | 91,563 | — | ||||||||||||
Global equity | 17,928 | 17,928 | ||||||||||||||
Fixed income securities: | ||||||||||||||||
U.S. bond funds | 84,645 | — | 84,645 | — | ||||||||||||
International bonds | 36,282 | — | 36,282 | — | ||||||||||||
Other | 1,857 | — | — | 1,857 | ||||||||||||
$ | 395,382 | $ | 141,951 | $ | 251,574 | $ | 1,857 |
Pensions | Other Postretirement Benefits | |||||||
2017 | $ | 28,703 | $ | 3,983 | ||||
2018 | 28,577 | 3,352 | ||||||
2019 | 28,878 | 3,176 | ||||||
2020 | 28,810 | 3,294 | ||||||
2021 | 28,994 | 3,095 | ||||||
Years 2022-2026 | 144,566 | 12,906 | ||||||
Total | $ | 288,528 | $ | 29,806 |
Pensions | Other Postretirement Benefits | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||
Service cost | $ | 5,395 | $ | 5,508 | $ | 4,546 | $ | 122 | $ | 145 | $ | 139 | ||||||||||||
Interest cost | 19,494 | 20,019 | 22,026 | 1,766 | 1,836 | 2,179 | ||||||||||||||||||
Expected return on plan assets | (30,302 | ) | (32,404 | ) | (34,232 | ) | — | — | — | |||||||||||||||
Amortization of prior service cost (credit) | 210 | 305 | 648 | (373 | ) | (564 | ) | (871 | ) | |||||||||||||||
Recognized losses | 10,791 | 15,004 | 8,617 | 535 | 1,011 | 1,017 | ||||||||||||||||||
Curtailment loss (gain) | — | — | 219 | — | — | 4 | ||||||||||||||||||
Settlement loss | — | 9,939 | 871 | — | — | — | ||||||||||||||||||
Special termination benefits | — | — | 715 | — | — | — | ||||||||||||||||||
Net periodic benefit cost | $ | 5,588 | $ | 18,371 | $ | 3,410 | $ | 2,050 | $ | 2,428 | $ | 2,468 |
2016 | 2015 | 2014 | |||||||
U.S. plans: | |||||||||
Discount rate | 4.65 | % | 4.25 | % | 5.20 | % | |||
Long-term rate of return | 8.25 | % | 8.25 | % | 9.00 | % | |||
Increase in compensation | 3.71 | % | 3.71 | % | 3.72 | % | |||
Non-U.S. plans: | |||||||||
Discount rate | 2.80 | % | 2.74 | % | 3.93 | % | |||
Long-term rate of return | 4.73 | % | 5.00 | % | 5.07 | % | |||
Increase in compensation | 2.71 | % | 2.72 | % | 2.76 | % |
One Percentage Point Increase | One Percentage Point Decrease | |||||||
Effect on postretirement benefit obligation | $ | 319 | $ | (295 | ) | |||
Effect on postretirement benefit cost | 14 | (13 | ) |
Contributions by the Company | |||||||||||
Pension Fund: | 2016 | 2015 | 2014 | ||||||||
Swedish Pension Plan (ITP2) | 673 | $ | 343 | $ | 379 | ||||||
Total Contributions | $ | 673 | $ | 343 | $ | 379 |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Benefit obligation, January 1 | $ | 385,629 | $ | 75,406 | $ | 461,035 | $ | 433,079 | $ | 80,305 | $ | 513,384 | ||||||||||||
Service cost | 3,892 | 1,503 | 5,395 | 4,160 | 1,348 | 5,508 | ||||||||||||||||||
Interest cost | 17,523 | 1,971 | 19,494 | 17,967 | 2,052 | 20,019 | ||||||||||||||||||
Amendments | 2,405 | (174 | ) | 2,231 | — | (463 | ) | (463 | ) | |||||||||||||||
Actuarial loss (gain) | 6,661 | 10,814 | 17,475 | (16,622 | ) | (2,288 | ) | (18,910 | ) | |||||||||||||||
Benefits paid | (26,497 | ) | (4,691 | ) | (31,188 | ) | (52,490 | ) | (4,244 | ) | (56,734 | ) | ||||||||||||
Transfers in | — | 25,968 | 25,968 | — | 3,951 | 3,951 | ||||||||||||||||||
Plan curtailments | — | — | — | (465 | ) | — | (465 | ) | ||||||||||||||||
Plan settlements | — | — | — | — | (375 | ) | (375 | ) | ||||||||||||||||
Participant contributions | — | 1,444 | 1,444 | — | 368 | 368 | ||||||||||||||||||
Foreign exchange rate changes | — | (7,902 | ) | (7,902 | ) | — | (5,248 | ) | (5,248 | ) | ||||||||||||||
Benefit obligation, December 31 | 389,613 | 104,339 | 493,952 | 385,629 | 75,406 | 461,035 | ||||||||||||||||||
Fair value of plan assets, January 1 | 326,829 | 68,553 | 395,382 | 380,937 | 71,750 | 452,687 | ||||||||||||||||||
Actual return on plan assets | 13,051 | 7,276 | 20,327 | (5,045 | ) | 1,264 | (3,781 | ) | ||||||||||||||||
Company contributions | 17,877 | 2,224 | 20,101 | 3,427 | 1,100 | 4,527 | ||||||||||||||||||
Participant contributions | — | 1,444 | 1,444 | — | 368 | 368 | ||||||||||||||||||
Benefits paid | (26,497 | ) | (4,691 | ) | (31,188 | ) | (52,490 | ) | (4,244 | ) | (56,734 | ) | ||||||||||||
Plan settlements | — | — | — | — | (376 | ) | (376 | ) | ||||||||||||||||
Transfers in | — | 18,320 | 18,320 | — | 3,434 | 3,434 | ||||||||||||||||||
Foreign exchange rate changes | — | (7,474 | ) | (7,474 | ) | — | (4,743 | ) | (4,743 | ) | ||||||||||||||
Fair value of plan assets, December 31 | 331,260 | 85,652 | 416,912 | 326,829 | 68,553 | 395,382 | ||||||||||||||||||
Underfunded status, December 31 | $ | (58,353 | ) | $ | (18,687 | ) | $ | (77,040 | ) | $ | (58,800 | ) | $ | (6,853 | ) | $ | (65,653 | ) |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Other assets | $ | — | $ | 3,017 | $ | 3,017 | $ | 8,389 | $ | 4,561 | $ | 12,950 | ||||||||||||
Accrued liabilities | 2,813 | 367 | 3,180 | 2,806 | 379 | 3,185 | ||||||||||||||||||
Accrued retirement benefits | 55,540 | 21,337 | 76,877 | 64,383 | 11,035 | 75,418 | ||||||||||||||||||
Accumulated other non-owner changes to equity, net | (91,530 | ) | (19,458 | ) | (110,988 | ) | (83,014 | ) | (16,812 | ) | (99,826 | ) |
2016 | 2015 | |||||||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||||||||
Net actuarial loss | $ | (89,772 | ) | $ | (19,822 | ) | $ | (109,594 | ) | $ | (82,643 | ) | $ | (16,999 | ) | $ | (99,642 | ) | ||||||
Prior service costs | (1,758 | ) | 364 | (1,394 | ) | (371 | ) | 187 | (184 | ) | ||||||||||||||
$ | (91,530 | ) | $ | (19,458 | ) | $ | (110,988 | ) | $ | (83,014 | ) | $ | (16,812 | ) | $ | (99,826 | ) |
2016 | 2015 | |||||||
Benefit obligation, January 1 | $ | 41,706 | $ | 46,814 | ||||
Service cost | 122 | 145 | ||||||
Interest cost | 1,766 | 1,836 | ||||||
Actuarial gain | (3,495 | ) | (2,521 | ) | ||||
Benefits paid | (5,621 | ) | (6,970 | ) | ||||
Participant contributions | 2,281 | 2,486 | ||||||
Foreign exchange rate changes | 94 | (84 | ) | |||||
Benefit obligation, December 31 | 36,853 | 41,706 | ||||||
Fair value of plan assets, January 1 | — | — | ||||||
Company contributions | 3,340 | 4,484 | ||||||
Participant contributions | 2,281 | 2,486 | ||||||
Benefits paid | (5,621 | ) | (6,970 | ) | ||||
Fair value of plan assets, December 31 | — | — | ||||||
Underfunded status, December 31 | $ | 36,853 | $ | 41,706 |
2016 | 2015 | |||||||
Accrued liabilities | $ | 5,081 | $ | 5,259 | ||||
Accrued retirement benefits | 31,772 | 36,447 | ||||||
Accumulated other non-owner changes to equity, net | (3,582 | ) | (5,877 | ) |
2016 | 2015 | |||||||
Net actuarial loss | $ | (3,532 | ) | $ | (6,061 | ) | ||
Prior service credits | (50 | ) | 184 | |||||
$ | (3,582 | ) | $ | (5,877 | ) |
|
Number of Shares | Weighted-Average Exercise Price | ||||||
Outstanding, January 1, 2016 | 644,072 | $ | 25.63 | ||||
Granted | 167,105 | 31.34 | |||||
Exercised | (203,517 | ) | 20.56 | ||||
Forfeited | (18,500 | ) | 36.22 | ||||
Outstanding, December 31, 2016 | 589,160 | 28.67 |
Options Outstanding | Options Exercisable | |||||||||||||||
Range of Exercise Prices | Number of Shares | Average Remaining Life (Years) | Average Exercise Price | Number of Shares | Average Exercise Price | |||||||||||
$11.45 to $15.83 | 87,690 | 2.58 | $ | 13.48 | 87,690 | $ | 13.48 | |||||||||
$20.69 to $24.24 | 76,584 | 5.10 | 22.65 | 76,584 | 22.65 | |||||||||||
$26.32 to $30.71 | 214,312 | 7.49 | 29.27 | 72,312 | 26.43 | |||||||||||
$33.45 to $38.96 | 210,574 | 7.91 | 36.57 | 82,350 | 36.83 |
2016 | 2015 | 2014 | |||||||
Risk-free interest rate | 1.20 | % | 1.58 | % | 1.68 | % | |||
Expected life (years) | 5.3 | 5.3 | 5.3 | ||||||
Expected volatility | 29.1 | % | 31.1 | % | 42.6 | % | |||
Expected dividend yield | 1.94 | % | 2.06 | % | 2.24 | % |
Options Outstanding, Expected to Vest | Options Outstanding, Exercisable | ||||||||||||||||||||||
Shares | Weighted- Average Exercise Price | Aggregate Intrinsic Value | Weighted- Average Remaining Term (Years) | Shares | Weighted- Average Exercise Price | Aggregate Intrinsic Value | Weighted- Average Remaining Term (Years) | ||||||||||||||||
568,820 | $ | 28.67 | $ | 10,667 | 6.60 | 318,936 | $ | 24.65 | $ | 7,263 | 4.85 |
Service Based Rights | Service and Performance Based Rights | Service and Market Based Rights | |||||||||||||||||||
Number of Units | Weighted-Average Grant Date Fair Value | Number of Units | Weighted-Average Grant Date Fair Value | Number of Units | Weighted-Average Grant Date Fair Value | ||||||||||||||||
Outstanding, January 1, 2016 | 401,706 | $ | 30.51 | 214,426 | $ | 31.29 | 107,213 | $ | 48.37 | ||||||||||||
Granted | 154,903 | 32.22 | 62,070 | 31.32 | 62,069 | 48.84 | |||||||||||||||
Forfeited | (16,138 | ) | 34.23 | (6,333 | ) | 37.61 | (3,476 | ) | 31.46 | ||||||||||||
Additional Earned | — | — | 35,653 | 24.55 | 29,937 | 24.18 | |||||||||||||||
Issued | (193,167 | ) | 34.53 | (133,774 | ) | 24.55 | (78,997 | ) | 24.18 | ||||||||||||
Outstanding, December 31, 2016 | 347,304 | 172,042 | 116,746 |
|
2016 | 2015 | 2014 | |||||||
U.S. federal statutory income tax rate | 35.0 | % | 35.0 | % | 35.0 | % | |||
State taxes (net of federal benefit) | 0.4 | 0.2 | 0.5 | ||||||
Foreign losses without tax benefit | 0.7 | 1.1 | 1.1 | ||||||
Foreign operations taxed at lower rates | (10.9 | ) | (12.9 | ) | (9.9 | ) | |||
Repatriation from current year foreign earnings | 1.6 | 4.3 | 2.6 | ||||||
Tax withholding refund | — | (1.9 | ) | — | |||||
Tax Holidays | (1.2 | ) | (3.2 | ) | (2.7 | ) | |||
Stock awards excess tax benefit | (1.2 | ) | — | — | |||||
Other | 1.3 | 0.6 | 1.0 | ||||||
Consolidated effective income tax rate | 25.7 | % | 23.2 | % | 27.6 | % |
2016 | 2015 | 2014 | ||||||||||
Income from continuing operations before income taxes: | ||||||||||||
U.S. | $ | 34,129 | $ | 11,525 | $ | 33,070 | ||||||
International | 148,492 | 146,421 | 133,430 | |||||||||
Income from continuing operations before income taxes | $ | 182,621 | $ | 157,946 | $ | 166,500 | ||||||
Income tax provision: | ||||||||||||
Current: | ||||||||||||
U.S. – federal | $ | 7,215 | $ | (210 | ) | $ | 22,673 | |||||
U.S. – state | 755 | 2,019 | 1,236 | |||||||||
International | 41,516 | 32,217 | 35,954 | |||||||||
49,486 | 34,026 | 59,863 | ||||||||||
Deferred: | ||||||||||||
U.S. – federal | $ | 6,091 | $ | 7,670 | $ | (6,737 | ) | |||||
U.S. – state | 1,060 | (1,137 | ) | 1,279 | ||||||||
International | (9,617 | ) | (3,993 | ) | (8,446 | ) | ||||||
(2,466 | ) | 2,540 | (13,904 | ) | ||||||||
Income taxes | $ | 47,020 | $ | 36,566 | $ | 45,959 |
2016 | 2015 | |||||||
Deferred tax assets: | ||||||||
Pension | $ | 27,410 | $ | 25,331 | ||||
Tax loss carryforwards | 16,686 | 15,330 | ||||||
Inventory valuation | 15,518 | 15,938 | ||||||
Other postretirement/postemployment costs | 14,071 | 15,753 | ||||||
Accrued Compensation | 10,121 | 10,242 | ||||||
Other | 6,489 | 5,880 | ||||||
Valuation allowance | (14,957 | ) | (14,401 | ) | ||||
Total deferred tax assets | 75,338 | 74,073 | ||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | (89,198 | ) | (81,158 | ) | ||||
Goodwill | (14,871 | ) | (14,545 | ) | ||||
Other | (12,282 | ) | (16,313 | ) | ||||
Total deferred tax liabilities | (116,351 | ) | (112,016 | ) | ||||
Net deferred tax liabilities | $ | (41,013 | ) | $ | (37,943 | ) |
2016 | 2015 | |||||||
Current deferred tax assets | $ | — | $ | 24,825 | ||||
Non-current deferred tax assets | 25,433 | 1,139 | ||||||
Current deferred tax liabilities (included in accrued liabilities) | — | (1,543 | ) | |||||
Non-current deferred tax liabilities | (66,446 | ) | (62,364 | ) | ||||
Net deferred tax liabilities | $ | (41,013 | ) | $ | (37,943 | ) |
2016 | 2015 | 2014 | ||||||||||
Balance at January 1 | $ | 10,634 | $ | 8,560 | $ | 8,027 | ||||||
Increase (decrease) in unrecognized tax benefits due to: | ||||||||||||
Tax positions taken during prior periods | — | 1,691 | 533 | |||||||||
Tax positions taken during the current period | 117 | — | — | |||||||||
Acquisition | 2,569 | 598 | — | |||||||||
Lapse of the applicable statute of limitations | — | (215 | ) | — | ||||||||
Balance at December 31 | $ | 13,320 | $ | 10,634 | $ | 8,560 |
|
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2016 | $ | 115 | $ | (105,703 | ) | $ | (37,664 | ) | $ | (143,252 | ) | ||||
Other comprehensive loss before reclassifications to consolidated statements of income | (739 | ) | (16,137 | ) | (48,367 | ) | (65,243 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 397 | 7,270 | — | 7,667 | |||||||||||
Net current-period other comprehensive loss | (342 | ) | (8,867 | ) | (48,367 | ) | (57,576 | ) | |||||||
December 31, 2016 | $ | (227 | ) | $ | (114,570 | ) | $ | (86,031 | ) | $ | (200,828 | ) | |||
Gains and Losses on Cash Flow Hedges | Pension and Other Postretirement Benefit Items | Foreign Currency Items | Total | ||||||||||||
January 1, 2015 | $ | (732 | ) | $ | (115,289 | ) | $ | 16,568 | $ | (99,453 | ) | ||||
Other comprehensive loss before reclassifications to consolidated statements of income | (70 | ) | (6,921 | ) | (54,232 | ) | (61,223 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income to the consolidated statements of income | 917 | 16,507 | — | 17,424 | |||||||||||
Net current-period other comprehensive income (loss) | 847 | 9,586 | (54,232 | ) | (43,799 | ) | |||||||||
December 31, 2015 | $ | 115 | $ | (105,703 | ) | $ | (37,664 | ) | $ | (143,252 | ) |
Details about Accumulated Other Comprehensive Income Components | Amount Reclassified from Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | ||||||||
2016 | 2015 | |||||||||
Gains and losses on cash flow hedges | ||||||||||
Interest rate contracts | $ | (557 | ) | $ | (853 | ) | Interest expense | |||
Foreign exchange contracts | (61 | ) | (490 | ) | Net sales | |||||
(618 | ) | (1,343 | ) | Total before tax | ||||||
221 | 426 | Tax benefit | ||||||||
(397 | ) | (917 | ) | Net of tax | ||||||
Pension and other postretirement benefit items | ||||||||||
Amortization of prior-service credits, net | $ | 163 | $ | 259 | (A) | |||||
Amortization of actuarial losses | (11,326 | ) | (16,015 | ) | (A) | |||||
Settlement loss | — | (9,939 | ) | (A) | ||||||
(11,163 | ) | (25,695 | ) | Total before tax | ||||||
3,893 | 9,188 | Tax benefit | ||||||||
(7,270 | ) | (16,507 | ) | Net of tax | ||||||
Total reclassifications in the period | $ | (7,667 | ) | $ | (17,424 | ) |
|
Industrial | Aerospace | Other | Total Company | |||||||||||||
Sales | ||||||||||||||||
2016 | $ | 824.2 | $ | 406.5 | $ | — | $ | 1,230.8 | ||||||||
2015 | 782.3 | 411.7 | — | 1,194.0 | ||||||||||||
2014 | 822.1 | 440.0 | — | 1,262.0 | ||||||||||||
Operating profit | ||||||||||||||||
2016 | $ | 129.7 | $ | 62.5 | $ | — | $ | 192.2 | ||||||||
2015 | 103.0 | 65.4 | — | 168.4 | ||||||||||||
2014 | 108.4 | 71.6 | — | 180.0 | ||||||||||||
Assets | ||||||||||||||||
2016 | $ | 1,356.1 | $ | 647.8 | $ | 133.7 | $ | 2,137.5 | ||||||||
2015 | 1,241.2 | 654.1 | 166.5 | 2,061.9 | ||||||||||||
2014 | 1,282.0 | 655.0 | 136.9 | 2,073.9 | ||||||||||||
Depreciation and amortization | ||||||||||||||||
2016 | $ | 49.5 | $ | 30.0 | $ | 0.7 | $ | 80.2 | ||||||||
2015 | 46.0 | 30.8 | 1.3 | 78.2 | ||||||||||||
2014 | 54.7 | 24.9 | 1.8 | 81.4 | ||||||||||||
Capital expenditures | ||||||||||||||||
2016 | $ | 25.9 | $ | 21.1 | $ | 0.5 | $ | 47.6 | ||||||||
2015 | 28.7 | 17.2 | 0.1 | 46.0 | ||||||||||||
2014 | 36.1 | 20.9 | 0.4 | 57.4 |
2016 | 2015 | 2014 | ||||||||||
Operating profit | $ | 192.2 | $ | 168.4 | $ | 180.0 | ||||||
Interest expense | 11.9 | 10.7 | 11.4 | |||||||||
Other expense (income), net | (2.3 | ) | (0.2 | ) | 2.1 | |||||||
Income from continuing operations before income taxes | $ | 182.6 | $ | 157.9 | $ | 166.5 |
2016 | 2015 | 2014 | ||||||||||
Engineered Components Products | $ | 332.6 | $ | 342.2 | $ | 373.1 | ||||||
Molding Solutions Products | 376.6 | 324.6 | 322.7 | |||||||||
Nitrogen Gas Products | 115.0 | 115.5 | 126.2 | |||||||||
Aerospace Original Equipment Manufacturing Products | 288.4 | 295.7 | 329.6 | |||||||||
Aerospace Aftermarket Products and Services | 118.2 | 116.0 | 110.4 | |||||||||
Total net sales | $ | 1,230.8 | $ | 1,194.0 | $ | 1,262.0 |
Domestic | International | Other | Total Company | ||||||||||||||
Sales | |||||||||||||||||
2016 | $ | 562.6 | $ | 727.4 | $ | (59.2 | ) | $ | 1,230.8 | ||||||||
2015 | 589.6 | 661.7 | (57.3 | ) | 1,194.0 | ||||||||||||
2014 | 618.9 | 677.6 | (34.5 | ) | 1,262.0 | ||||||||||||
Long-lived assets | |||||||||||||||||
2016 | $ | 368.2 | $ | 1,135.5 | $ | — | $ | 1,503.6 | |||||||||
2015 | 379.2 | 1,069.9 | — | 1,449.1 | |||||||||||||
2014 | 380.6 | 1,094.9 | — | 1,475.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|