TIMKENSTEEL CORP, 10-Q filed on 5/2/2019
Quarterly Report
v3.19.1
Document and Entity Information - shares
3 Months Ended
Mar. 31, 2019
Apr. 15, 2019
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2019  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q1  
Entity Registrant Name TimkenSteel Corporation  
Entity Central Index Key 0001598428  
Current Fiscal Year End Date --12-31  
Entity Filer Category Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Common Stock, Shares Outstanding   44,765,909
v3.19.1
Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Income Statement [Abstract]    
Net sales $ 371.0 $ 380.8
Cost of products sold 341.9 359.7
Gross Profit 29.1 21.1
Selling, general and administrative expenses 23.3 24.7
Operating Income (Loss) 5.8 (3.6)
Interest expense 4.2 4.6
Other income, net (2.7) (6.4)
Income (Loss) Before Income Taxes 4.3 (1.8)
Provision for income taxes 0.1 0.1
Net Income (Loss) $ 4.2 $ (1.9)
Per Share Data:    
Basic earnings (loss) per share (in dollars per share) $ 0.09 $ (0.04)
Diluted earnings (loss) per share (in dollars per share) $ 0.09 $ (0.04)
v3.19.1
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 4.2 $ (1.9)
Other comprehensive income, net of tax:    
Foreign currency translation adjustments 0.4 0.8
Pension and postretirement liability adjustments 0.1 0.1
Other comprehensive income, net of tax 0.5 0.9
Comprehensive Income (Loss), net of tax $ 4.7 $ (1.0)
v3.19.1
Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Current Assets    
Cash and cash equivalents $ 7.8 $ 21.6
Accounts receivable, net of allowances (2019 - $1.5 million; 2018 - $1.7 million) 151.3 163.4
Inventories, net 324.3 296.8
Deferred charges and prepaid expenses 3.4 3.5
Other current assets 7.4 6.1
Total Current Assets 494.2 491.4
Property, Plant and Equipment, Net 661.1 674.4
Operating lease right-of-use assets 15.9  
Pension assets 12.7 10.5
Intangible assets, net 17.7 17.8
Other non-current assets 3.1 3.5
Total Assets 1,204.7 1,197.6
Current Liabilities    
Accounts payable 129.9 160.6
Salaries, wages and benefits 26.6 36.8
Accrued pension and postretirement costs 3.0 3.0
Current operating lease liabilities 5.9 0.0
Other current liabilities 20.3 20.4
Total Current Liabilities 185.7 220.8
Non-Current Liabilities    
Convertible notes, net 75.2 74.1
Credit Agreement 140.0 115.0
Non-current operating lease liabilities 10.0  
Accrued pension and postretirement costs 241.3 240.0
Deferred income taxes 0.6 0.8
Other non-current liabilities 10.6 11.7
Total Liabilities 663.4 662.4
Shareholders’ Equity    
Preferred shares, without par value; authorized 10.0 million shares, none issued 0.0 0.0
Common shares, without par value; authorized 200.0 million shares; issued 2019 and 2018 - 45.7 million shares 0.0 0.0
Additional paid-in capital 841.2 846.3
Retained deficit (265.0) (269.2)
Treasury shares - 2019 - 1.0 million; 2018 - 1.1 million (26.5) (33.0)
Accumulated other comprehensive loss (8.4) (8.9)
Total Shareholders’ Equity 541.3 535.2
Total Liabilities and Shareholders’ Equity $ 1,204.7 $ 1,197.6
v3.19.1
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Allowances for accounts receivable $ 1.5 $ 1.7
Preferred shares, authorized (in shares) 10,000,000.0 10,000,000.0
Preferred shares, issued (in shares) 0 0
Common shares, authorized (in shares) 200,000,000.0 200,000,000.0
Common shares, issued (in shares) 45,700,000 45,700,000
Treasury shares (in shares) 1,000,000 1,100,000
v3.19.1
Consolidated Statements of Shareholder's Equity (Unaudited) - USD ($)
$ in Millions
Total
Common Shares
Additional Paid-in Capital
Retained Earnings (Deficit)
Treasury Shares
Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Dec. 31, 2017   44,445,747        
Beginning balance at Dec. 31, 2017 $ 560.7   $ 843.7 $ (238.0) $ (37.4) $ (7.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) (1.9)     (1.9)    
Other comprehensive income 0.9         0.9
Stock-based compensation expense 2.2   2.2      
Stock option activity 0.1   0.1      
Issuance of treasury shares (in shares)   121,012        
Issuance of treasury shares     (3.4) (0.1) 3.5  
Shares surrendered for taxes (in shares   (37,533)        
Shares surrendered for taxes (0.7)       (0.7)  
Ending balance (in shares) at Mar. 31, 2018   44,529,226        
Ending balance at Mar. 31, 2018 562.0   842.6 (239.3) (34.6) (6.7)
Beginning balance (in shares) at Dec. 31, 2018   44,584,668        
Beginning balance at Dec. 31, 2018 535.2   846.3 (269.2) (33.0) (8.9)
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income (loss) 4.2     4.2    
Other comprehensive income 0.5         0.5
Stock-based compensation expense 2.2   2.2      
Stock option activity 0.2   0.2      
Issuance of treasury shares (in shares)   261,130        
Issuance of treasury shares     (7.5)   7.5  
Shares surrendered for taxes (in shares   (79,889)        
Shares surrendered for taxes (1.0)       (1.0)  
Ending balance (in shares) at Mar. 31, 2019   44,765,909        
Ending balance at Mar. 31, 2019 $ 541.3   $ 841.2 $ (265.0) $ (26.5) $ (8.4)
v3.19.1
Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Operating Activities    
Net income (loss) $ 4.2 $ (1.9)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 17.8 18.5
Amortization of deferred financing fees and debt discount 1.3 1.8
Deferred income taxes (0.2) (0.3)
Stock-based compensation expense 2.2 2.2
Pension and postretirement expense (benefit), net 1.8 (1.4)
Pension and postretirement contributions and payments (2.4) (2.5)
Changes in operating assets and liabilities:    
Accounts receivable, net 12.1 (31.3)
Inventories, net (27.5) (28.8)
Accounts payable (30.7) 35.7
Other accrued expenses (11.4) (13.2)
Deferred charges and prepaid expenses 0.1 0.4
Other, net (0.9) 1.4
Net Cash Used by Operating Activities (33.6) (19.4)
Investing Activities    
Capital expenditures (4.4) (2.2)
Net Cash Used by Investing Activities (4.4) (2.2)
Financing Activities    
Proceeds from exercise of stock options 0.2 0.1
Shares surrendered for employee taxes on stock compensation (1.0) (0.7)
Refunding Bonds repayments 0.0 (30.2)
Repayments on credit agreements (5.0) (65.0)
Borrowings on credit agreements 30.0 130.0
Debt issuance costs 0.0 (1.7)
Net Cash Provided by Financing Activities 24.2 32.5
Effect of exchange rate changes on cash 0.0 0.0
Decrease (Increase) In Cash and Cash Equivalents (13.8) 10.9
Cash and cash equivalents at beginning of period 21.6 24.5
Cash and Cash Equivalents at End of Period $ 7.8 $ 35.4
v3.19.1
Company and Basis of Presentation
3 Months Ended
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Company and Basis of Presentation
Basis of Presentation
The accompanying Unaudited Consolidated Financial Statements have been prepared by TimkenSteel Corporation (the Company or TimkenSteel) 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, 2018.
v3.19.1
Recent Accounting Pronouncements
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Adoption of New Accounting Standards
The Company adopted the following Accounting Standard Updates (ASU) in the first quarter of 2019, all of which were effective as of January 1, 2019. The adoption of these standards had no impact on the Unaudited Consolidated Financial Statements or the related Notes to the Unaudited Consolidated Financial Statements.
Standards Adopted
Description
ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
The standard provides an expanded scope of Topic 718, to include share-based payment transactions for acquiring goods and services from nonemployees.
ASU 2018-02, Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
The standard permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings.
ASU 2017-11, Distinguishing Liabilities from Equity; Derivatives and Hedging
The standard eliminates the requirement to consider “down round” features when determining whether certain equity-linked financial instruments or embedded features are indexed to an entity’s own stock.


On January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topics 842),” which requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for not only finance (previously capital) leases but also operating leases. The standard also requires additional quantitative and qualitative disclosures. The Company adopted the standard using the modified retrospective transition approach without adjusting comparative periods.
The Company elected certain of the practical expedients permitted under the transition guidance within the new standard as follows:
A package of practical expedients to not reassess:
Whether a contract is or contains a lease
Lease classification
Initial direct costs
A practical expedient to not reassess certain land easements

The Company has implemented internal controls and lease accounting software to enable the quantification of the expected impact on the Unaudited Consolidated Balance Sheets and to facilitate the calculations of the related accounting entries and disclosures. Adoption of the lease standard resulted in recognition of right-to-use assets and lease liabilities of $16.0 million as of January 1, 2019. Adoption of the lease standard had no impact on the Company’s debt-covenant compliance under its current agreements. Also, the standard did not materially affect the Company’s results of operations or its cash flows. Refer to “Note 9 - Leases” for additional information.
Accounting Standards Issued But Not Yet Adopted
The Company has considered the recent ASUs issued by the Financial Accounting Standards Board summarized below:
Standard Pending Adoption
Description
Effective Date
Anticipated Impact
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)
The standard aligns the requirements for capitalizing implementation costs in cloud computing software arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)
The standard eliminates, modifies and adds disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.
January 1, 2021
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2018-13, Fair Value Measurement (Topic 820)
The standard eliminates, modifies and adds disclosure requirements for fair value measurements.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2016-13, Measurement of Credit Losses on Financial Instruments
The standard changes how entities will measure credit losses for most financial assets, including trade and other receivables and replaces the current incurred loss approach with an expected loss model.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
v3.19.1
Inventories
3 Months Ended
Mar. 31, 2019
Inventory Disclosure [Abstract]  
Inventories
Inventories
The components of inventories, net of reserves as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31,
2019
 
December 31,
2018
Manufacturing supplies

$52.5

 

$46.9

Raw materials
51.8

 
35.2

Work in process
170.6

 
155.7

Finished products
132.5

 
142.8

Gross inventory
407.4

 
380.6

Allowance for surplus and obsolete inventory
(5.1
)
 
(5.1
)
LIFO reserve
(78.0
)
 
(78.7
)
Total Inventories, net

$324.3

 

$296.8


Inventories are valued at the lower of cost or market, with approximately 74% valued by the last in, first out (LIFO) method, and the remaining inventories, including manufacturing supplies inventory as well as international (outside the United States) inventories, valued by first-in, first-out, 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.
TimkenSteel projects its LIFO reserve will decrease for the year ending December 31, 2019 due primarily to lower anticipated manufacturing costs.
v3.19.1
Property, Plant and Equipment
3 Months Ended
Mar. 31, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Property, Plant and Equipment
The components of property, plant and equipment, net as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31,
2019
 
December 31,
2018
Land

$14.1

 

$14.1

Buildings and improvements
426.0

 
424.4

Machinery and equipment
1,414.1

 
1,404.2

Construction in progress
18.8

 
28.5

Subtotal
1,873.0

 
1,871.2

Less allowances for depreciation
(1,211.9
)
 
(1,196.8
)
Property, Plant and Equipment, net

$661.1

 

$674.4


Total depreciation expense was $16.4 million and $17.0 million for the three months ended March 31, 2019 and 2018, respectively.
v3.19.1
Intangible Assets
3 Months Ended
Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets
The components of intangible assets, net as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31, 2019
 
December 31, 2018
 
Gross Carrying Amount
 
 Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
 Accumulated Amortization
 
Net Carrying Amount
Customer relationships

$6.3

 

$4.7

 

$1.6

 

$6.3

 

$4.6

 

$1.7

Technology use
9.0

 
6.7

 
2.3

 
9.0

 
6.5

 
2.5

Capitalized software
62.6

 
48.8

 
13.8

 
61.6

 
48.0

 
13.6

Total Intangible Assets

$77.9

 

$60.2

 

$17.7

 

$76.9

 

$59.1

 

$17.8

v3.19.1
Financing Arrangements
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Financing Arrangements
Financing Arrangements
For a detailed discussion of the Company's long-term debt and credit arrangements, refer to “Note 6 - Financing Arrangements” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018.
Convertible Notes
The components of the Convertible Notes as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31,
2019
 
December 31,
2018
Principal

$86.3

 

$86.3

Less: Debt issuance costs, net of amortization
(1.1
)
 
(1.2
)
Less: Debt discount, net of amortization
(10.0
)
 
(11.0
)
Convertible notes, net

$75.2

 

$74.1


The initial value of the principal amount recorded as a liability at the date of issuance was $66.9 million, using an effective interest rate of 12.0%. The remaining $19.4 million of principal amount was allocated to the conversion feature and recorded as a component of shareholders’ equity at the date of issuance. This amount represents a discount to the debt to be amortized through interest expense using the effective interest method through the maturity of the Convertible Notes.
Transaction costs were allocated to the liability and equity components based on their relative values. Transaction costs attributable to the liability component of $2.4 million are amortized to interest expense over the term of the Convertible Notes, and transaction costs attributable to the equity component of $0.7 million are included in shareholders’ equity.
The following table sets forth total interest expense recognized related to the Convertible Notes:
 
Three Months Ended March 31,
 
2019
 
2018
Contractual interest expense

$1.3

 

$1.3

Amortization of debt issuance costs
0.1

 
0.1

Amortization of debt discount
1.0

 
0.9

Total

$2.4

 

$2.3


Credit Agreement
On January 26, 2018, the Company, as borrower, and certain domestic subsidiaries, as subsidiary guarantors, entered into the Second Amended and Restated Credit Agreement (Credit Agreement), with JPMorgan Chase Bank, N.A., as administrative agent, Bank of America, N.A., as syndication agent, and the other lenders party thereto, which amended and restated the Company’s Credit Agreement. The interest rate under the Credit Agreement was 4.5% as of March 31, 2019. The amount available under the Credit Agreement as of March 31, 2019 was $157.4 million. As of March 31, 2019, the Company was in compliance with all covenants.
Refunding Bonds
In connection with amending the Credit Agreement, on January 23, 2018, the Company redeemed in full $12.2 million of Ohio Water Development Revenue Refunding Bonds (originally due on November 1, 2025), $9.5 million of Ohio Air Quality Development Revenue Refunding Bonds (originally due on November 1, 2025) and $8.5 million of Ohio Pollution Control Revenue Refunding Bonds (originally due on June 1, 2033).
Fair Value Measurement
The fair value of the Convertible Notes was approximately $102.3 million as of March 31, 2019. The fair value of the Convertible Notes, which falls within Level 1 of the fair value hierarchy as defined by Accounting Standards Codification (ASC) 820, Fair Value Measurements, is based on the last price traded in March 2019.
TimkenSteel’s Credit Agreement is variable-rate debt. As such, the carrying value is a reasonable estimate of fair value as interest rates on these borrowings approximate current market rates. This valuation falls within Level 2 of the fair value hierarchy and is based on quoted prices for similar assets and liabilities in active markets that are observable either directly or indirectly.
Interest Paid
The total cash interest paid for the three months ended March 31, 2019 and 2018 was $1.8 million and $0.9 million, respectively.
v3.19.1
Accumulated Other Comprehensive Loss
3 Months Ended
Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 by component were as follows:
 
Foreign Currency Translation Adjustments
 
Pension and Postretirement Liability Adjustments
 
Total
Balance as of December 31, 2018

($7.3
)
 

($1.6
)
 

($8.9
)
Other comprehensive income before reclassifications, before income tax
0.4

 

 
0.4

Amounts reclassified from accumulated other comprehensive loss, before income tax

 
0.1

 
0.1

Income tax

 

 

Net current period other comprehensive income, net of income taxes
0.4

 
0.1

 
0.5

Balance as of March 31, 2019

($6.9
)
 

($1.5
)
 

($8.4
)
 
 
 
 
 
 
 
Foreign Currency Translation Adjustments
 
Pension and Postretirement Liability Adjustments
 
Total
Balance at December 31, 2017

($5.9
)
 

($1.7
)
 

($7.6
)
Other comprehensive income before reclassifications, before income tax
0.8

 

 
0.8

Amounts reclassified from accumulated other comprehensive loss, before income tax

 
0.1

 
0.1

Income tax

 

 

Net current period other comprehensive income, net of income taxes
0.8

 
0.1

 
0.9

Balance as of March 31, 2018

($5.1
)
 

($1.6
)
 

($6.7
)


The amount reclassified from accumulated other comprehensive loss for the pension and postretirement liability adjustment was included in other income, net in the Unaudited Consolidated Statements of Operations. These accumulated other comprehensive loss components are components of net periodic benefit cost. See “Note 8 - Retirement and Postretirement Plans” for additional information.
v3.19.1
Retirement and Postretirement Benefits
3 Months Ended
Mar. 31, 2019
Defined Benefit Plan [Abstract]  
Retirement and Postretirement Plans
Retirement and Postretirement Plans
The components of net periodic benefit cost (income) for the three months ended March 31, 2019 and 2018 were as follows:
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
Pension
 
Postretirement
 
Pension
 
Postretirement
Service cost

$4.3

 

$0.3

 

$4.3

 

$0.4

Interest cost
12.2

 
2.0

 
11.4

 
1.9

Expected return on plan assets
(16.2
)
 
(0.9
)
 
(18.4
)
 
(1.2
)
Amortization of prior service cost
0.1

 

 
0.1

 
0.1

Net Periodic Benefit Cost (Income)

$0.4

 

$1.4

 

($2.6
)
 

$1.2

v3.19.1
Leases
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Leases
Note 9 - Leases
The Company has operating leases for office space, warehouses, land, machinery and equipment, vehicles and certain information technology equipment. These leases have remaining lease terms of one year to six years, some of which may include options to extend the leases for one or more years. Certain leases also include options to purchase the leased property. As of March 31, 2019, the Company has no financing leases and no material leases that have not yet commenced. The weighted average remaining lease term for our operating leases as of March 31, 2019 was 3.0 years.
Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. For lease agreements entered into after the adoption of ASC 842, the Company combines lease and non-lease components. The Company’s lease agreements do not contain material residual value guarantees or material restrictive covenants.
The Company recorded lease cost for the three months ended March 31, 2019 as follows:
 
Three Months Ended March 31, 2019
Operating lease cost

$1.8

Short-term lease cost
0.5

Total lease cost

$2.3


When available, the rate implicit in the lease is used to discount lease payments to present value; however, the Company’s leases generally do not provide a readily determinable implicit rate. Therefore, the incremental borrowing rate to discount the lease payments is estimated using market-based information available at lease commencement. The weighted average discount rate used to measure our operating lease liabilities as of March 31, 2019 was 4.7%.
Supplemental cash flow information related to leases was as follows:
 
Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities

$1.8

Right-of-use assets obtained in exchange for operating lease obligations

$1.6


Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows:
2019 (excluding the three months ended March 31, 2019)

$5.0

2020
5.8

2021
3.8

2022
1.6

2023
0.8

After 2023
0.1

Total future minimum lease payments
17.1

   Less amount of lease payment representing interest
(1.2
)
Total present value of lease payments

$15.9


Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows:
2019

$6.3

2020
5.2

2021
3.3

2022
1.0

2023
0.6

After 2023

Total future minimum lease payments

$16.4

v3.19.1
Revenue Recognition
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Revenue Recognition
Revenue Recognition
TimkenSteel recognizes revenue from contracts at a point in time when it has satisfied its performance obligation and the customer obtains control of the goods, at the amount that reflects the consideration the Company expects to receive for those goods. The Company receives and acknowledges purchase orders from its customers which define the quantity, pricing, payment and other applicable terms and conditions. In some cases, the Company receives a blanket purchase order from its customer, which includes pricing, payment and other terms and conditions, with quantities defined at the time the customer issues periodic releases against the blanket purchase order. Certain contracts contain variable consideration, which primarily consists of rebates that are accounted for in net sales and accrued based on the estimated probability of the requirements being met. Amounts billed to customers related to shipping and handling costs are included in net sales and related costs are included in costs of products sold in the Unaudited Consolidated Financial Statements.
The following table provides the major sources of revenue by end-market sector for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
 
2019
 
2018
Mobile

$144.2

 

$142.5

Industrial
147.0

 
147.7

Energy
60.8

 
49.1

Other(1)
19.0

 
41.5

Total Net Sales

$371.0

 

$380.8

(1) “Other” for sales by end-market sector includes the Company’s scrap and OCTG billet sales.
The following table provides the major sources of revenue by product type for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
 
2019
 
2018
Bar

$239.9

 

$234.4

Tube
49.6

 
63.7

Value-add
73.7

 
72.7

Other(2)
7.8

 
10.0

Total Net Sales

$371.0

 

$380.8

(2) “Other” for sales by product type includes the Company’s scrap sales.
v3.19.1
Earnings Per Share
3 Months Ended
Mar. 31, 2019
Earnings Per Share [Abstract]  
Earnings Per Share
Note 11 - Earnings Per Share
Basic earnings (loss) per share is computed based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is computed based upon the weighted average number of common shares outstanding plus the dilutive effect of common share equivalents calculated using the treasury stock method or if-converted method. For the Convertible Notes, the Company utilizes the if-converted method to calculate diluted earnings (loss) per share. Under the if-converted method, the Company adjusts net earnings to add back interest expense (including amortization of debt discount) recognized on the Convertible Notes and includes the number of shares potentially issuable related to the Convertible Notes in the weighted average shares outstanding. Treasury stock is excluded from the denominator in calculating both basic and diluted earnings (loss) per share.
For the three months ended March 31, 2019 and 2018, 2.3 million and 3.4 million shares issuable for equity-based awards, respectively, were excluded from the computation of diluted loss per share because the effect of their inclusion would have been anti-dilutive. In periods in which a net loss has occurred, as is the case for the three months ended March 31, 2018, the dilutive effect of equity-based awards is not recognized and thus not utilized in the calculation of diluted loss per share, because the effect of their inclusion would have been anti-dilutive. The shares potentially issuable of 6.9 million, related to the Convertible Notes, were also anti-dilutive for the three months ended March 31, 2019 and 2018, respectively.
The following table sets forth the reconciliation of the numerator and the denominator of basic and diluted earnings (loss) per share for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
 
2019
 
2018
Numerator:
 
 
 
Net income (loss)

$4.2

 

($1.9
)
 
 
 
 
Denominator:
 
 
 
Weighted average shares outstanding, basic
44.7

 
44.5

Dilutive effect of stock-based awards
0.5

 

Weighted average shares outstanding, diluted
45.2

 
44.5

 
 
 
 
Basic earnings (loss) per share

$0.09

 

($0.04
)
Diluted earnings (loss) per share

$0.09

 

($0.04
)
v3.19.1
Income Tax Provision
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Income Tax Provision
TimkenSteel’s 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 March 31,
 
2019
 
2018
Provision for incomes taxes

$0.1



$0.1

Effective tax rate
1.1
%
 
(5.6
)%

In light of TimkenSteel’s recent operating performance in the U.S. and current industry conditions, the Company assessed, based upon all available evidence, and concluded that it was more likely than not that it would not realize its U.S. deferred tax assets. As a result, the Company will maintain a full valuation allowance against its deferred tax assets in the U.S. and applicable foreign countries until sufficient positive evidence exists to conclude that a valuation allowance is not necessary. Going forward, the need to maintain valuation allowances against deferred tax assets in the U.S. and other affected countries will cause variability in the Company’s effective tax rate.
v3.19.1
Contingencies
3 Months Ended
Mar. 31, 2019
Loss Contingency Accrual, Disclosures [Abstract]  
Contingencies
Contingencies
TimkenSteel has a number of loss exposures incurred in the ordinary course of business, such as environmental claims, product warranty claims, and litigation. 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. As of March 31, 2019 and December 31, 2018, TimkenSteel had a $1.3 million and a $1.5 million contingency reserve, respectively, related to loss exposures incurred in the ordinary course of business.
v3.19.1
Other Income, Net
3 Months Ended
Mar. 31, 2019
Other Income and Expenses [Abstract]  
Other Income, Net
The following table provides the components of other income, net for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
 
2019
 
2018
Pension and postretirement non-service benefit income

$2.8

 

$6.3

Foreign currency exchange (loss) gain
(0.1
)
 
0.1

Total other income, net

$2.7



$6.4


Non-service benefit income is derived from the Company’s pension and other postretirement plans. The Company’s expected return on assets has exceeded the interest cost component, resulting in income for the three months ended March 31, 2019 and 2018. Foreign currency exchange loss (gain) is due to exchange-rate fluctuations on the Company’s various foreign-currency denominated transactions.
v3.19.1
Subsequent Event
3 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Event
After reviewing the TimkenSteel retiree group health plan in comparison to health insurance options available in the individual market, TimkenSteel announced on April 9, 2019 that it would be moving Medicare-eligible union retirees to an individual plan on a Medicare healthcare exchange. The plans on the exchange offer more options and flexibility than these retirees currently have, and typically cost them less for comparable or better health and prescription drug coverage. The Company is providing these retirees access to a personal benefits advisor as well as additional informational resources to assist with the transition by July 31, 2019.
The Company will continue to provide financial support for eligible premiums and expenses through the payment of subsidies ranging from $1,200 to $1,800 annually into the retirees’ Health Reimbursement Accounts (HRAs). The Company concluded this plan change will be accounted for as a plan amendment in the Company’s second quarter of 2019. The Company estimates it will recognize a reduction in the accumulated postretirement benefit obligation (APBO) of approximately $65 to $70 million. The reduction in the APBO will be recognized in Other Comprehensive Income and subsequently amortized as an offset to postretirement benefit cost over a period of approximately 12 years (average remaining service period). Excluding the impact of the mark-to-market adjustment, which cannot be determined at this time, will reduce the Company’s expected 2019 postretirement benefit cost by approximately $5 million. The Company will perform a remeasurement at April 30, 2019.
v3.19.1
Recent Accounting Pronouncements (Policies)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Adoption of New Accounting Standards
Adoption of New Accounting Standards
The Company adopted the following Accounting Standard Updates (ASU) in the first quarter of 2019, all of which were effective as of January 1, 2019. The adoption of these standards had no impact on the Unaudited Consolidated Financial Statements or the related Notes to the Unaudited Consolidated Financial Statements.
Standards Adopted
Description
ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
The standard provides an expanded scope of Topic 718, to include share-based payment transactions for acquiring goods and services from nonemployees.
ASU 2018-02, Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
The standard permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings.
ASU 2017-11, Distinguishing Liabilities from Equity; Derivatives and Hedging
The standard eliminates the requirement to consider “down round” features when determining whether certain equity-linked financial instruments or embedded features are indexed to an entity’s own stock.


On January 1, 2019, the Company adopted ASU 2016-02, “Leases (Topics 842),” which requires lessees to recognize lease liabilities and right-of-use assets on the balance sheet for not only finance (previously capital) leases but also operating leases. The standard also requires additional quantitative and qualitative disclosures. The Company adopted the standard using the modified retrospective transition approach without adjusting comparative periods.
The Company elected certain of the practical expedients permitted under the transition guidance within the new standard as follows:
A package of practical expedients to not reassess:
Whether a contract is or contains a lease
Lease classification
Initial direct costs
A practical expedient to not reassess certain land easements

The Company has implemented internal controls and lease accounting software to enable the quantification of the expected impact on the Unaudited Consolidated Balance Sheets and to facilitate the calculations of the related accounting entries and disclosures. Adoption of the lease standard resulted in recognition of right-to-use assets and lease liabilities of $16.0 million as of January 1, 2019. Adoption of the lease standard had no impact on the Company’s debt-covenant compliance under its current agreements. Also, the standard did not materially affect the Company’s results of operations or its cash flows. Refer to “Note 9 - Leases” for additional information.
Accounting Standards Issued But Not Yet Adopted
The Company has considered the recent ASUs issued by the Financial Accounting Standards Board summarized below:
Standard Pending Adoption
Description
Effective Date
Anticipated Impact
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)
The standard aligns the requirements for capitalizing implementation costs in cloud computing software arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)
The standard eliminates, modifies and adds disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.
January 1, 2021
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2018-13, Fair Value Measurement (Topic 820)
The standard eliminates, modifies and adds disclosure requirements for fair value measurements.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2016-13, Measurement of Credit Losses on Financial Instruments
The standard changes how entities will measure credit losses for most financial assets, including trade and other receivables and replaces the current incurred loss approach with an expected loss model.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
v3.19.1
Recent Accounting Pronouncements (Tables)
3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]  
Schedule of Accounting Changes
The Company has considered the recent ASUs issued by the Financial Accounting Standards Board summarized below:
Standard Pending Adoption
Description
Effective Date
Anticipated Impact
ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40)
The standard aligns the requirements for capitalizing implementation costs in cloud computing software arrangements with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)
The standard eliminates, modifies and adds disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.
January 1, 2021
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2018-13, Fair Value Measurement (Topic 820)
The standard eliminates, modifies and adds disclosure requirements for fair value measurements.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
ASU 2016-13, Measurement of Credit Losses on Financial Instruments
The standard changes how entities will measure credit losses for most financial assets, including trade and other receivables and replaces the current incurred loss approach with an expected loss model.
January 1, 2020
The Company is currently evaluating the impact of the adoption of this ASU on its results of operations and financial condition.
The Company adopted the following Accounting Standard Updates (ASU) in the first quarter of 2019, all of which were effective as of January 1, 2019. The adoption of these standards had no impact on the Unaudited Consolidated Financial Statements or the related Notes to the Unaudited Consolidated Financial Statements.
Standards Adopted
Description
ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
The standard provides an expanded scope of Topic 718, to include share-based payment transactions for acquiring goods and services from nonemployees.
ASU 2018-02, Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income
The standard permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of tax reform to retained earnings.
ASU 2017-11, Distinguishing Liabilities from Equity; Derivatives and Hedging
The standard eliminates the requirement to consider “down round” features when determining whether certain equity-linked financial instruments or embedded features are indexed to an entity’s own stock.
v3.19.1
Inventories (Tables)
3 Months Ended
Mar. 31, 2019
Inventory Disclosure [Abstract]  
Schedule of Components of Inventory
The components of inventories, net of reserves as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31,
2019
 
December 31,
2018
Manufacturing supplies

$52.5

 

$46.9

Raw materials
51.8

 
35.2

Work in process
170.6

 
155.7

Finished products
132.5

 
142.8

Gross inventory
407.4

 
380.6

Allowance for surplus and obsolete inventory
(5.1
)
 
(5.1
)
LIFO reserve
(78.0
)
 
(78.7
)
Total Inventories, net

$324.3

 

$296.8

v3.19.1
Property, Plant and Equipment (Tables)
3 Months Ended
Mar. 31, 2019
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
The components of property, plant and equipment, net as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31,
2019
 
December 31,
2018
Land

$14.1

 

$14.1

Buildings and improvements
426.0

 
424.4

Machinery and equipment
1,414.1

 
1,404.2

Construction in progress
18.8

 
28.5

Subtotal
1,873.0

 
1,871.2

Less allowances for depreciation
(1,211.9
)
 
(1,196.8
)
Property, Plant and Equipment, net

$661.1

 

$674.4

v3.19.1
Intangible Assets (Tables)
3 Months Ended
Mar. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite-Lived Intangible Assets
The components of intangible assets, net as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31, 2019
 
December 31, 2018
 
Gross Carrying Amount
 
 Accumulated Amortization
 
Net Carrying Amount
 
Gross Carrying Amount
 
 Accumulated Amortization
 
Net Carrying Amount
Customer relationships

$6.3

 

$4.7

 

$1.6

 

$6.3

 

$4.6

 

$1.7

Technology use
9.0

 
6.7

 
2.3

 
9.0

 
6.5

 
2.5

Capitalized software
62.6

 
48.8

 
13.8

 
61.6

 
48.0

 
13.6

Total Intangible Assets

$77.9

 

$60.2

 

$17.7

 

$76.9

 

$59.1

 

$17.8

v3.19.1
Financing Arrangements (Tables)
3 Months Ended
Mar. 31, 2019
Debt Disclosure [Abstract]  
Schedule of Components of Convertible Notes
The components of the Convertible Notes as of March 31, 2019 and December 31, 2018 were as follows:
 
March 31,
2019
 
December 31,
2018
Principal

$86.3

 

$86.3

Less: Debt issuance costs, net of amortization
(1.1
)
 
(1.2
)
Less: Debt discount, net of amortization
(10.0
)
 
(11.0
)
Convertible notes, net

$75.2

 

$74.1

Schedule of Long-term Debt Instruments
The following table sets forth total interest expense recognized related to the Convertible Notes:
 
Three Months Ended March 31,
 
2019
 
2018
Contractual interest expense

$1.3

 

$1.3

Amortization of debt issuance costs
0.1

 
0.1

Amortization of debt discount
1.0

 
0.9

Total

$2.4

 

$2.3

v3.19.1
Accumulated Other Comprehensive Loss (Tables)
3 Months Ended
Mar. 31, 2019
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 by component were as follows:
 
Foreign Currency Translation Adjustments
 
Pension and Postretirement Liability Adjustments
 
Total
Balance as of December 31, 2018

($7.3
)
 

($1.6
)
 

($8.9
)
Other comprehensive income before reclassifications, before income tax
0.4

 

 
0.4

Amounts reclassified from accumulated other comprehensive loss, before income tax

 
0.1

 
0.1

Income tax

 

 

Net current period other comprehensive income, net of income taxes
0.4

 
0.1

 
0.5

Balance as of March 31, 2019

($6.9
)
 

($1.5
)
 

($8.4
)
 
 
 
 
 
 
 
Foreign Currency Translation Adjustments
 
Pension and Postretirement Liability Adjustments
 
Total
Balance at December 31, 2017

($5.9
)
 

($1.7
)
 

($7.6
)
Other comprehensive income before reclassifications, before income tax
0.8

 

 
0.8

Amounts reclassified from accumulated other comprehensive loss, before income tax

 
0.1

 
0.1

Income tax

 

 

Net current period other comprehensive income, net of income taxes
0.8

 
0.1

 
0.9

Balance as of March 31, 2018

($5.1
)
 

($1.6
)
 

($6.7
)
v3.19.1
Retirement and Postretirement Benefits (Tables)
3 Months Ended
Mar. 31, 2019
Defined Benefit Plan [Abstract]  
Schedule of Periodic Benefit Cost
The components of net periodic benefit cost (income) for the three months ended March 31, 2019 and 2018 were as follows:
 
Three Months Ended
March 31, 2019
 
Three Months Ended
March 31, 2018
 
Pension
 
Postretirement
 
Pension
 
Postretirement
Service cost

$4.3

 

$0.3

 

$4.3

 

$0.4

Interest cost
12.2

 
2.0

 
11.4

 
1.9

Expected return on plan assets
(16.2
)
 
(0.9
)
 
(18.4
)
 
(1.2
)
Amortization of prior service cost
0.1

 

 
0.1

 
0.1

Net Periodic Benefit Cost (Income)

$0.4

 

$1.4

 

($2.6
)
 

$1.2

v3.19.1
Leases (Tables)
3 Months Ended
Mar. 31, 2019
Leases [Abstract]  
Lease, Cost
The Company recorded lease cost for the three months ended March 31, 2019 as follows:
 
Three Months Ended March 31, 2019
Operating lease cost

$1.8

Short-term lease cost
0.5

Total lease cost

$2.3

Supplemental cash flow information related to leases was as follows:
 
Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of operating lease liabilities

$1.8

Right-of-use assets obtained in exchange for operating lease obligations

$1.6

Future Lease Maturity
Future minimum lease payments under non-cancellable leases as of March 31, 2019 were as follows:
2019 (excluding the three months ended March 31, 2019)

$5.0

2020
5.8

2021
3.8

2022
1.6

2023
0.8

After 2023
0.1

Total future minimum lease payments
17.1

   Less amount of lease payment representing interest
(1.2
)
Total present value of lease payments

$15.9

Future Lease Maturity
Future minimum lease payments under non-cancellable leases as of December 31, 2018 were as follows:
2019

$6.3

2020
5.2

2021
3.3

2022
1.0

2023
0.6

After 2023

Total future minimum lease payments

$16.4

v3.19.1
Revenue Recognition (Tables)
3 Months Ended
Mar. 31, 2019
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following table provides the major sources of revenue by end-market sector for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
 
2019
 
2018
Mobile

$144.2

 

$142.5

Industrial
147.0

 
147.7

Energy
60.8

 
49.1

Other(1)
19.0

 
41.5

Total Net Sales

$371.0

 

$380.8

(1) “Other” for sales by end-market sector includes the Company’s scrap and OCTG billet sales.
The following table provides the major sources of revenue by product type for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
 
2019
 
2018
Bar

$239.9

 

$234.4

Tube
49.6

 
63.7

Value-add
73.7

 
72.7

Other(2)
7.8

 
10.0

Total Net Sales

$371.0

 

$380.8

(2) “Other” for sales by product type includes the Company’s scrap sales.
v3.19.1
Earnings Per Share (Tables)
3 Months Ended
Mar. 31, 2019
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
 
Three Months Ended March 31,
 
2019
 
2018
Numerator:
 
 
 
Net income (loss)

$4.2

 

($1.9
)
 
 
 
 
Denominator:
 
 
 
Weighted average shares outstanding, basic
44.7

 
44.5

Dilutive effect of stock-based awards
0.5

 

Weighted average shares outstanding, diluted
45.2

 
44.5

 
 
 
 
Basic earnings (loss) per share

$0.09

 

($0.04
)
Diluted earnings (loss) per share

$0.09

 

($0.04
)
v3.19.1
Income Tax Provision (Tables)
3 Months Ended
Mar. 31, 2019
Income Tax Disclosure [Abstract]  
Schedule of (Benefit) Provision for Income Taxes
 
Three Months Ended March 31,
 
2019
 
2018
Provision for incomes taxes

$0.1



$0.1

Effective tax rate
1.1
%
 
(5.6
)%
v3.19.1
Other Income, Net (Tables)
3 Months Ended
Mar. 31, 2019
Other Income and Expenses [Abstract]  
Schedule of Other Expense, net
The following table provides the components of other income, net for the three months ended March 31, 2019 and 2018:
 
Three Months Ended March 31,
 
2019
 
2018
Pension and postretirement non-service benefit income

$2.8

 

$6.3

Foreign currency exchange (loss) gain
(0.1
)
 
0.1

Total other income, net

$2.7



$6.4

v3.19.1
Recent Accounting Pronouncements - Adoption of New Accounting Standards (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Jan. 01, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Total present value of lease payments $ 15.9  
Right-to-use assets $ 15.9  
Accounting Standards Update 2016-02    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Total present value of lease payments   $ 16.0
Right-to-use assets   $ 16.0
v3.19.1
Inventories - Schedule of Inventory (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Inventory Disclosure [Abstract]    
Manufacturing supplies $ 52.5 $ 46.9
Raw materials 51.8 35.2
Work in process 170.6 155.7
Finished products 132.5 142.8
Gross inventory 407.4 380.6
Allowance for surplus and obsolete inventory (5.1) (5.1)
LIFO reserve (78.0) (78.7)
Total Inventories, net $ 324.3 $ 296.8
v3.19.1
Inventories - Narrative (Details)
Mar. 31, 2019
Inventory Disclosure [Abstract]  
Percentage of LIFO inventory 74.00%
v3.19.1
Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Property, Plant and Equipment [Abstract]    
Land $ 14.1 $ 14.1
Buildings and improvements 426.0 424.4
Machinery and equipment 1,414.1 1,404.2
Construction in progress 18.8 28.5
Subtotal 1,873.0 1,871.2
Less allowances for depreciation (1,211.9) (1,196.8)
Property, Plant and Equipment, net $ 661.1 $ 674.4
v3.19.1
Property, Plant and Equipment - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Property, Plant and Equipment [Abstract]    
Depreciation $ 16.4 $ 17.0
v3.19.1
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 77.9 $ 76.9
Accumulated Amortization 60.2 59.1
Net Carrying Amount 17.7 17.8
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 6.3 6.3
Accumulated Amortization 4.7 4.6
Net Carrying Amount 1.6 1.7
Technology use    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 9.0 9.0
Accumulated Amortization 6.7 6.5
Net Carrying Amount 2.3 2.5
Capitalized software    
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount 62.6 61.6
Accumulated Amortization 48.8 48.0
Net Carrying Amount $ 13.8 $ 13.6
v3.19.1
Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended
Mar. 31, 2019
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense for intangible assets $ 1.4 $ 1.5
v3.19.1
Financing Arrangements - Schedule of Convertible Debt (Details) - Convertible Notes - Convertible Senior Notes - USD ($)
$ in Millions
Mar. 31, 2019
Dec. 31, 2018
May 31, 2016
Debt Instrument [Line Items]      
Principal $ 86.3 $ 86.3  
Less: Debt issuance costs, net of amortization (1.1) (1.2) $ (2.4)
Less: Debt discount, net of amortization (10.0) (11.0)