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Three Months Ended March 31, 2016 | ||||||||||||||||
As previously presented | Revisions | Impact of change to FIFO | As revised | |||||||||||||
Cost of sales | $ | 345.5 | $ | — | $ | 2.2 | $ | 347.7 | ||||||||
Operating (loss) income | 3.0 | — | (2.2 | ) | 0.8 | |||||||||||
Loss on debt extinguishment | (72.0 | ) | (4.3 | ) | — | (76.3 | ) | |||||||||
Loss from continuing operations before taxes on income | (78.5 | ) | (4.3 | ) | (2.2 | ) | (85.0 | ) | ||||||||
Provision (benefit) for taxes on income | 122.3 | (0.8 | ) | (13.8 | ) | 107.7 | ||||||||||
Loss from continuing operations | (200.8 | ) | (3.5 | ) | 11.6 | (192.7 | ) | |||||||||
Discontinued operations: | ||||||||||||||||
Loss from discontinued operations, net of income taxes | (3.2 | ) | — | — | (3.2 | ) | ||||||||||
Net loss | $ | (204.0 | ) | $ | (3.5 | ) | $ | 11.6 | $ | (195.9 | ) | |||||
Loss per common share - basic and diluted | ||||||||||||||||
Loss from continuing operations | $ | (1.47 | ) | $ | (0.03 | ) | $ | 0.09 | $ | (1.41 | ) | |||||
Loss from discontinued operations | (0.02 | ) | — | — | (0.02 | ) | ||||||||||
Loss per common share | $ | (1.49 | ) | $ | (0.03 | ) | $ | 0.09 | $ | (1.43 | ) |
|
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS | ||||
(in millions) | Three Months Ended March 31, 2016 | |||
Net sales | $ | 219.6 | ||
Cost of sales | 141.5 | |||
Engineering, selling and administrative expenses | 48.3 | |||
Amortization expense | 5.2 | |||
Restructuring expense | 0.3 | |||
Separation expense | 26.9 | |||
Total operating costs and expenses | 222.2 | |||
Loss from operations | (2.6 | ) | ||
Other expense | (1.9 | ) | ||
Loss from discontinued operations before income taxes | (4.5 | ) | ||
Benefit for taxes on earnings | (1.3 | ) | ||
Loss from discontinued operations, net of income taxes | $ | (3.2 | ) |
|
(in millions) | March 31, 2017 | December 31, 2016 | ||||||
Inventories: | ||||||||
Raw materials | $ | 118.8 | $ | 109.3 | ||||
Work-in-process | 112.3 | 88.4 | ||||||
Finished goods | 272.1 | 270.9 | ||||||
Total inventories | 503.2 | 468.6 | ||||||
Excess and obsolete inventory reserve | (41.9 | ) | (39.6 | ) | ||||
Inventories — net | $ | 461.3 | $ | 429.0 |
|
|
(in millions) | Total | |||
Balance as of January 1, 2016 | $ | 306.5 | ||
Foreign currency impact | (6.9 | ) | ||
Balance as of December 31, 2016 | 299.6 | |||
Foreign currency impact | 3.3 | |||
Balance as of March 31, 2017 | $ | 302.9 |
March 31, 2017 | December 31, 2016 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 93.3 | $ | — | $ | 93.3 | $ | 92.4 | $ | — | $ | 92.4 | ||||||||||||
Customer relationships | 10.6 | (8.3 | ) | 2.3 | 10.3 | (7.8 | ) | 2.5 | ||||||||||||||||
Patents | 28.7 | (27.7 | ) | 1.0 | 28.5 | (27.4 | ) | 1.1 | ||||||||||||||||
Engineering drawings | 10.2 | (10.1 | ) | 0.1 | 10.0 | (9.9 | ) | 0.1 | ||||||||||||||||
Distribution network | 18.2 | (0.1 | ) | 18.1 | 18.0 | — | 18.0 | |||||||||||||||||
Other intangibles | 0.2 | (0.2 | ) | — | 0.2 | (0.2 | ) | — | ||||||||||||||||
Total | $ | 161.2 | $ | (46.4 | ) | $ | 114.8 | $ | 159.4 | $ | (45.3 | ) | $ | 114.1 |
|
(in millions) | March 31, 2017 | December 31, 2016 | ||||||
Trade accounts payable | $ | 197.8 | $ | 157.7 | ||||
Employee-related expenses | 30.9 | 28.1 | ||||||
Accrued vacation | 21.9 | 21.8 | ||||||
Miscellaneous accrued expenses | 85.5 | 113.6 | ||||||
Total | $ | 336.1 | $ | 321.2 |
|
(in millions) | March 31, 2017 | December 31, 2016 | ||||||
Senior secured second lien notes due 2021 | $ | 250.3 | $ | 249.8 | ||||
Other | 34.9 | 35.7 | ||||||
Deferred financing costs | (3.7 | ) | (4.0 | ) | ||||
Total debt | 281.5 | 281.5 | ||||||
Short-term borrowings and current portion of long-term debt | (12.9 | ) | (12.4 | ) | ||||
Long-term debt | $ | 268.6 | $ | 269.1 |
|
|
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(in millions) | Retained Earnings | |||
Balance at December 31, 2016 | $ | 247.3 | ||
Net loss | (36.0 | ) | ||
Balance at March 31, 2017 | $ | 211.3 |
(in millions) | Retained Earnings | |||
Balance at December 31, 2015 | $ | 562.3 | ||
Net income | (195.9 | ) | ||
Distribution of MFS | 51.8 | |||
Balance at March 31, 2016 | $ | 418.2 |
(in millions) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Foreign Currency Translation | Total | ||||||||||||
Balance at December 31, 2016 | $ | (0.3 | ) | $ | (51.8 | ) | $ | (110.8 | ) | $ | (162.9 | ) | ||||
Other comprehensive income before reclassifications | 0.3 | — | 10.1 | 10.4 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 0.2 | 0.6 | — | 0.8 | ||||||||||||
Net current period other comprehensive income | 0.5 | 0.6 | 10.1 | 11.2 | ||||||||||||
Balance at March 31, 2017 | $ | 0.2 | $ | (51.2 | ) | $ | (100.7 | ) | $ | (151.7 | ) |
(in millions) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Foreign Currency Translation | Total | ||||||||||||
Balance at December 31, 2015 | $ | (3.8 | ) | $ | (82.6 | ) | $ | (121.4 | ) | $ | (207.8 | ) | ||||
Other comprehensive (loss) income before reclassifications | (2.7 | ) | — | 20.3 | 17.6 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 4.3 | 1.2 | — | 5.5 | ||||||||||||
Net current period other comprehensive income | 1.6 | 1.2 | 20.3 | 23.1 | ||||||||||||
Distribution of MFS | 2.1 | 44.5 | 31.0 | 77.6 | ||||||||||||
Balance at March 31, 2016 | $ | (0.1 | ) | $ | (36.9 | ) | $ | (70.1 | ) | $ | (107.1 | ) |
Three Months Ended March 31, 2017 | ||||||
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (0.2 | ) | Cost of sales | ||
(0.2 | ) | Total before tax | ||||
— | Tax expense | |||||
$ | (0.2 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (1.3 | ) | (a) | ||
Prior service cost | 0.3 | |||||
(1.0 | ) | Total before tax | ||||
0.4 | Tax expense | |||||
$ | (0.6 | ) | Net of tax | |||
Total reclassifications for the period | $ | (0.8 | ) | Net of tax | ||
(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 17, “Employee Benefit Plans,” for further details). |
Three Months Ended March 31, 2016 | ||||||
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Commodity contracts | $ | (1.1 | ) | Cost of sales | ||
Interest rate swap contracts: Float-to-fixed | (4.3 | ) | Interest Expense | |||
(5.4 | ) | Total before tax | ||||
1.1 | Tax expense | |||||
$ | (4.3 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (1.2 | ) | (a) | ||
(1.2 | ) | Total before tax | ||||
— | Tax expense | |||||
$ | (1.2 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (5.5 | ) | Net of Tax | ||
(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 17, “Employee Benefit Plans,” for further details). |
|
|
Fair Value as of March 31, 2017 | |||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Current Assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total current assets at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Current Liabilities: | |||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.3 | $ | — | $ | 0.3 | |||||||
Total current liabilities at fair value | $ | — | $ | 0.3 | $ | — | $ | 0.3 |
Fair Value as of December 31, 2016 | |||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Current Assets: | |||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.2 | $ | — | $ | 0.2 | |||||||
Commodity contracts | — | 0.2 | — | 0.2 | |||||||||||
Total current assets at fair value | $ | — | $ | 0.4 | $ | — | $ | 0.4 | |||||||
Current Liabilities: | |||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | |||||||
Total current liabilities at fair value | $ | — | $ | 1.0 | $ | — | $ | 1.0 |
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 |
|
Designated Hedging Instruments | Units Hedged | |||||||||
Commodity | March 31, 2017 | December 31, 2016 | Unit | Type | ||||||
Natural Gas | 3,579 | 26,807 | MMBtu | Cash Flow | ||||||
Steel | 1,945 | 3,190 | Tons | Cash Flow |
Designated Hedging Instruments | Units Hedged | |||||||
Currency | March 31, 2017 | December 31, 2016 | Type | |||||
Australian Dollar | 1,380,374 | 611,143 | Cash Flow | |||||
European Euro | 4,609,005 | 9,834,120 | Cash Flow | |||||
South Korean Won | 83,579,000 | 218,408,100 | Cash Flow | |||||
Singapore Dollar | 300,000 | 900,000 | Cash Flow | |||||
United States Dollar | — | 2,311,697 | Cash Flow | |||||
Japanese Yen | 43,867,400 | 65,502,800 | Cash Flow |
Non Designated Hedging Instruments | Units Hedged | |||||||||
Currency | March 31, 2017 | December 31, 2016 | Recognized Location | Purpose | ||||||
European Euro | 4,929,005 | 10,502,111 | Other income, net | Accounts Payable and Receivable Settlement | ||||||
United States Dollar | 5,550,000 | 15,318,000 | Other income, net | Accounts Payable and Receivable Settlement |
Designated Hedging Instruments | ASSET DERIVATIVES | |||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments | ||||||||||
Foreign exchange contracts | Other current assets | $ | — | $ | 0.1 | |||||
Commodity contracts | Other current assets | 0.1 | 0.2 | |||||||
Total derivatives designated as hedging instruments | $ | 0.1 | $ | 0.3 |
ASSET DERIVATIVES | ||||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives NOT designated as hedging instruments | ||||||||||
Foreign exchange contracts | Other current assets | $ | — | $ | 0.1 | |||||
Total derivatives NOT designated as hedging instruments | $ | — | $ | 0.1 | ||||||
Total asset derivatives | $ | 0.1 | $ | 0.4 |
LIABILITY DERIVATIVES | ||||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments | ||||||||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.3 | $ | 0.9 | |||||
Total derivatives designated as hedging instruments | $ | 0.3 | $ | 0.9 |
LIABILITY DERIVATIVES | ||||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives NOT designated as hedging instruments | ||||||||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | — | $ | 0.1 | |||||
Total derivatives NOT designated as hedging instruments | $ | — | $ | 0.1 | ||||||
Total liability derivatives | $ | 0.3 | $ | 1.0 |
|
(in millions) | Three Months Ended March 31, 2017 | Year Ended December 31, 2016 | ||||||
Balance at beginning of period | $ | 28.6 | $ | 32.4 | ||||
Accruals for warranties issued during the period | 6.5 | 20.4 | ||||||
Settlements made (in cash or in kind) during the period | (8.7 | ) | (23.7 | ) | ||||
Currency translation | 0.2 | (0.5 | ) | |||||
Balance at end of period | $ | 26.6 | $ | 28.6 |
|
|
Three Months Ended March 31, 2017 | ||||||||||||
Postretirement | ||||||||||||
U.S. | Non-U.S. | Health and | ||||||||||
Pension | Pension | Other | ||||||||||
(in millions) | Plans | Plans | Plans | |||||||||
Service cost - benefits earned during the period | $ | — | $ | 0.4 | $ | 0.1 | ||||||
Interest cost of projected benefit obligations | 1.3 | 0.6 | 0.2 | |||||||||
Expected return on plan assets | (1.2 | ) | (0.4 | ) | — | |||||||
Amortization of prior service cost | — | — | (0.3 | ) | ||||||||
Amortization of actuarial net loss | 0.8 | 0.4 | 0.1 | |||||||||
Net periodic benefit costs | $ | 0.9 | $ | 1.0 | $ | 0.1 |
Three Months Ended March 31, 2016 | ||||||||||||
Postretirement | ||||||||||||
U.S. | Non-U.S. | Health and | ||||||||||
Pension | Pension | Other | ||||||||||
(in millions) | Plans | Plans | Plans | |||||||||
Service cost - benefits earned during the period | $ | — | $ | 0.5 | $ | 0.1 | ||||||
Interest cost of projected benefit obligations | 2.2 | 1.6 | 0.5 | |||||||||
Expected return on plan assets | (1.7 | ) | (1.2 | ) | — | |||||||
Amortization of actuarial net loss | 1.1 | 0.4 | — | |||||||||
Net periodic benefit costs | 1.6 | 1.3 | 0.6 | |||||||||
Net periodic benefit costs associated with MFS | 0.4 | 0.4 | 0.1 | |||||||||
Net periodic benefit costs included in continuing operations | $ | 1.2 | $ | 0.9 | $ | 0.5 |
|
Restructuring Reserve Balance as of December 31, 2016 | Restructuring Expenses | Cash Use of Reserve | Non-Cash Use of Reserve | Restructuring Reserve Balance as of March 31, 2017 | |||||||||||||||
Total | $ | 8.2 | $ | 11.7 | $ | 10.3 | $ | 4.7 | $ | 4.9 |
|
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Three Months Ended March 31, 2016 | ||||||||||||||||
As previously presented | Revisions | Impact of change to FIFO | As revised | |||||||||||||
Cost of sales | $ | 345.5 | $ | — | $ | 2.2 | $ | 347.7 | ||||||||
Operating (loss) income | 3.0 | — | (2.2 | ) | 0.8 | |||||||||||
Loss on debt extinguishment | (72.0 | ) | (4.3 | ) | — | (76.3 | ) | |||||||||
Loss from continuing operations before taxes on income | (78.5 | ) | (4.3 | ) | (2.2 | ) | (85.0 | ) | ||||||||
Provision (benefit) for taxes on income | 122.3 | (0.8 | ) | (13.8 | ) | 107.7 | ||||||||||
Loss from continuing operations | (200.8 | ) | (3.5 | ) | 11.6 | (192.7 | ) | |||||||||
Discontinued operations: | ||||||||||||||||
Loss from discontinued operations, net of income taxes | (3.2 | ) | — | — | (3.2 | ) | ||||||||||
Net loss | $ | (204.0 | ) | $ | (3.5 | ) | $ | 11.6 | $ | (195.9 | ) | |||||
Loss per common share - basic and diluted | ||||||||||||||||
Loss from continuing operations | $ | (1.47 | ) | $ | (0.03 | ) | $ | 0.09 | $ | (1.41 | ) | |||||
Loss from discontinued operations | (0.02 | ) | — | — | (0.02 | ) | ||||||||||
Loss per common share | $ | (1.49 | ) | $ | (0.03 | ) | $ | 0.09 | $ | (1.43 | ) |
|
Major classes of line items constituting earnings from discontinued operations before income taxes related to MFS | ||||
(in millions) | Three Months Ended March 31, 2016 | |||
Net sales | $ | 219.6 | ||
Cost of sales | 141.5 | |||
Engineering, selling and administrative expenses | 48.3 | |||
Amortization expense | 5.2 | |||
Restructuring expense | 0.3 | |||
Separation expense | 26.9 | |||
Total operating costs and expenses | 222.2 | |||
Loss from operations | (2.6 | ) | ||
Other expense | (1.9 | ) | ||
Loss from discontinued operations before income taxes | (4.5 | ) | ||
Benefit for taxes on earnings | (1.3 | ) | ||
Loss from discontinued operations, net of income taxes | $ | (3.2 | ) |
|
(in millions) | March 31, 2017 | December 31, 2016 | ||||||
Inventories: | ||||||||
Raw materials | $ | 118.8 | $ | 109.3 | ||||
Work-in-process | 112.3 | 88.4 | ||||||
Finished goods | 272.1 | 270.9 | ||||||
Total inventories | 503.2 | 468.6 | ||||||
Excess and obsolete inventory reserve | (41.9 | ) | (39.6 | ) | ||||
Inventories — net | $ | 461.3 | $ | 429.0 |
|
(in millions) | Total | |||
Balance as of January 1, 2016 | $ | 306.5 | ||
Foreign currency impact | (6.9 | ) | ||
Balance as of December 31, 2016 | 299.6 | |||
Foreign currency impact | 3.3 | |||
Balance as of March 31, 2017 | $ | 302.9 |
March 31, 2017 | December 31, 2016 | |||||||||||||||||||||||
(in millions) | Gross Carrying Amount | Accumulated Amortization | Net Book Value | Gross Carrying Amount | Accumulated Amortization | Net Book Value | ||||||||||||||||||
Trademarks and tradenames | $ | 93.3 | $ | — | $ | 93.3 | $ | 92.4 | $ | — | $ | 92.4 | ||||||||||||
Customer relationships | 10.6 | (8.3 | ) | 2.3 | 10.3 | (7.8 | ) | 2.5 | ||||||||||||||||
Patents | 28.7 | (27.7 | ) | 1.0 | 28.5 | (27.4 | ) | 1.1 | ||||||||||||||||
Engineering drawings | 10.2 | (10.1 | ) | 0.1 | 10.0 | (9.9 | ) | 0.1 | ||||||||||||||||
Distribution network | 18.2 | (0.1 | ) | 18.1 | 18.0 | — | 18.0 | |||||||||||||||||
Other intangibles | 0.2 | (0.2 | ) | — | 0.2 | (0.2 | ) | — | ||||||||||||||||
Total | $ | 161.2 | $ | (46.4 | ) | $ | 114.8 | $ | 159.4 | $ | (45.3 | ) | $ | 114.1 |
|
(in millions) | March 31, 2017 | December 31, 2016 | ||||||
Trade accounts payable | $ | 197.8 | $ | 157.7 | ||||
Employee-related expenses | 30.9 | 28.1 | ||||||
Accrued vacation | 21.9 | 21.8 | ||||||
Miscellaneous accrued expenses | 85.5 | 113.6 | ||||||
Total | $ | 336.1 | $ | 321.2 |
|
(in millions) | March 31, 2017 | December 31, 2016 | ||||||
Senior secured second lien notes due 2021 | $ | 250.3 | $ | 249.8 | ||||
Other | 34.9 | 35.7 | ||||||
Deferred financing costs | (3.7 | ) | (4.0 | ) | ||||
Total debt | 281.5 | 281.5 | ||||||
Short-term borrowings and current portion of long-term debt | (12.9 | ) | (12.4 | ) | ||||
Long-term debt | $ | 268.6 | $ | 269.1 |
|
(in millions) | Retained Earnings | |||
Balance at December 31, 2016 | $ | 247.3 | ||
Net loss | (36.0 | ) | ||
Balance at March 31, 2017 | $ | 211.3 |
(in millions) | Retained Earnings | |||
Balance at December 31, 2015 | $ | 562.3 | ||
Net income | (195.9 | ) | ||
Distribution of MFS | 51.8 | |||
Balance at March 31, 2016 | $ | 418.2 |
(in millions) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Foreign Currency Translation | Total | ||||||||||||
Balance at December 31, 2016 | $ | (0.3 | ) | $ | (51.8 | ) | $ | (110.8 | ) | $ | (162.9 | ) | ||||
Other comprehensive income before reclassifications | 0.3 | — | 10.1 | 10.4 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | 0.2 | 0.6 | — | 0.8 | ||||||||||||
Net current period other comprehensive income | 0.5 | 0.6 | 10.1 | 11.2 | ||||||||||||
Balance at March 31, 2017 | $ | 0.2 | $ | (51.2 | ) | $ | (100.7 | ) | $ | (151.7 | ) |
(in millions) | Gains and Losses on Cash Flow Hedges | Pension & Postretirement | Foreign Currency Translation | Total | ||||||||||||
Balance at December 31, 2015 | $ | (3.8 | ) | $ | (82.6 | ) | $ | (121.4 | ) | $ | (207.8 | ) | ||||
Other comprehensive (loss) income before reclassifications | (2.7 | ) | — | 20.3 | 17.6 | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 4.3 | 1.2 | — | 5.5 | ||||||||||||
Net current period other comprehensive income | 1.6 | 1.2 | 20.3 | 23.1 | ||||||||||||
Distribution of MFS | 2.1 | 44.5 | 31.0 | 77.6 | ||||||||||||
Balance at March 31, 2016 | $ | (0.1 | ) | $ | (36.9 | ) | $ | (70.1 | ) | $ | (107.1 | ) |
Three Months Ended March 31, 2017 | ||||||
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Foreign exchange contracts | $ | (0.2 | ) | Cost of sales | ||
(0.2 | ) | Total before tax | ||||
— | Tax expense | |||||
$ | (0.2 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (1.3 | ) | (a) | ||
Prior service cost | 0.3 | |||||
(1.0 | ) | Total before tax | ||||
0.4 | Tax expense | |||||
$ | (0.6 | ) | Net of tax | |||
Total reclassifications for the period | $ | (0.8 | ) | Net of tax | ||
(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 17, “Employee Benefit Plans,” for further details). |
Three Months Ended March 31, 2016 | ||||||
(in millions) | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | Recognized Location | ||||
Gains and losses on cash flow hedges | ||||||
Commodity contracts | $ | (1.1 | ) | Cost of sales | ||
Interest rate swap contracts: Float-to-fixed | (4.3 | ) | Interest Expense | |||
(5.4 | ) | Total before tax | ||||
1.1 | Tax expense | |||||
$ | (4.3 | ) | Net of tax | |||
Amortization of pension and postretirement items | ||||||
Actuarial losses | $ | (1.2 | ) | (a) | ||
(1.2 | ) | Total before tax | ||||
— | Tax expense | |||||
$ | (1.2 | ) | Net of Tax | |||
Total reclassifications for the period | $ | (5.5 | ) | Net of Tax | ||
(a) These accumulated other comprehensive income (loss) components are included in the computation of net periodic pension cost (see Note 17, “Employee Benefit Plans,” for further details). |
|
Fair Value as of March 31, 2017 | |||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Current Assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Total current assets at fair value | $ | — | $ | 0.1 | $ | — | $ | 0.1 | |||||||
Current Liabilities: | |||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.3 | $ | — | $ | 0.3 | |||||||
Total current liabilities at fair value | $ | — | $ | 0.3 | $ | — | $ | 0.3 |
Fair Value as of December 31, 2016 | |||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Current Assets: | |||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 0.2 | $ | — | $ | 0.2 | |||||||
Commodity contracts | — | 0.2 | — | 0.2 | |||||||||||
Total current assets at fair value | $ | — | $ | 0.4 | $ | — | $ | 0.4 | |||||||
Current Liabilities: | |||||||||||||||
Foreign currency exchange contracts | $ | — | $ | 1.0 | $ | — | $ | 1.0 | |||||||
Total current liabilities at fair value | $ | — | $ | 1.0 | $ | — | $ | 1.0 |
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 |
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Designated Hedging Instruments | ASSET DERIVATIVES | |||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments | ||||||||||
Foreign exchange contracts | Other current assets | $ | — | $ | 0.1 | |||||
Commodity contracts | Other current assets | 0.1 | 0.2 | |||||||
Total derivatives designated as hedging instruments | $ | 0.1 | $ | 0.3 |
ASSET DERIVATIVES | ||||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives NOT designated as hedging instruments | ||||||||||
Foreign exchange contracts | Other current assets | $ | — | $ | 0.1 | |||||
Total derivatives NOT designated as hedging instruments | $ | — | $ | 0.1 | ||||||
Total asset derivatives | $ | 0.1 | $ | 0.4 |
LIABILITY DERIVATIVES | ||||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives designated as hedging instruments | ||||||||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | 0.3 | $ | 0.9 | |||||
Total derivatives designated as hedging instruments | $ | 0.3 | $ | 0.9 |
LIABILITY DERIVATIVES | ||||||||||
March 31, 2017 | December 31, 2016 | |||||||||
(in millions) | Balance Sheet Location | Fair Value | ||||||||
Derivatives NOT designated as hedging instruments | ||||||||||
Foreign exchange contracts | Accounts payable and accrued expenses | $ | — | $ | 0.1 | |||||
Total derivatives NOT designated as hedging instruments | $ | — | $ | 0.1 | ||||||
Total liability derivatives | $ | 0.3 | $ | 1.0 |
Designated Hedging Instruments | Units Hedged | |||||||||
Commodity | March 31, 2017 | December 31, 2016 | Unit | Type | ||||||
Natural Gas | 3,579 | 26,807 | MMBtu | Cash Flow | ||||||
Steel | 1,945 | 3,190 | Tons | Cash Flow |
Designated Hedging Instruments | Units Hedged | |||||||
Currency | March 31, 2017 | December 31, 2016 | Type | |||||
Australian Dollar | 1,380,374 | 611,143 | Cash Flow | |||||
European Euro | 4,609,005 | 9,834,120 | Cash Flow | |||||
South Korean Won | 83,579,000 | 218,408,100 | Cash Flow | |||||
Singapore Dollar | 300,000 | 900,000 | Cash Flow | |||||
United States Dollar | — | 2,311,697 | Cash Flow | |||||
Japanese Yen | 43,867,400 | 65,502,800 | Cash Flow |
Non Designated Hedging Instruments | Units Hedged | |||||||||
Currency | March 31, 2017 | December 31, 2016 | Recognized Location | Purpose | ||||||
European Euro | 4,929,005 | 10,502,111 | Other income, net | Accounts Payable and Receivable Settlement | ||||||
United States Dollar | 5,550,000 | 15,318,000 | Other income, net | Accounts Payable and Receivable Settlement |
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(in millions) | Three Months Ended March 31, 2017 | Year Ended December 31, 2016 | ||||||
Balance at beginning of period | $ | 28.6 | $ | 32.4 | ||||
Accruals for warranties issued during the period | 6.5 | 20.4 | ||||||
Settlements made (in cash or in kind) during the period | (8.7 | ) | (23.7 | ) | ||||
Currency translation | 0.2 | (0.5 | ) | |||||
Balance at end of period | $ | 26.6 | $ | 28.6 |
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Three Months Ended March 31, 2017 | ||||||||||||
Postretirement | ||||||||||||
U.S. | Non-U.S. | Health and | ||||||||||
Pension | Pension | Other | ||||||||||
(in millions) | Plans | Plans | Plans | |||||||||
Service cost - benefits earned during the period | $ | — | $ | 0.4 | $ | 0.1 | ||||||
Interest cost of projected benefit obligations | 1.3 | 0.6 | 0.2 | |||||||||
Expected return on plan assets | (1.2 | ) | (0.4 | ) | — | |||||||
Amortization of prior service cost | — | — | (0.3 | ) | ||||||||
Amortization of actuarial net loss | 0.8 | 0.4 | 0.1 | |||||||||
Net periodic benefit costs | $ | 0.9 | $ | 1.0 | $ | 0.1 |
Three Months Ended March 31, 2016 | ||||||||||||
Postretirement | ||||||||||||
U.S. | Non-U.S. | Health and | ||||||||||
Pension | Pension | Other | ||||||||||
(in millions) | Plans | Plans | Plans | |||||||||
Service cost - benefits earned during the period | $ | — | $ | 0.5 | $ | 0.1 | ||||||
Interest cost of projected benefit obligations | 2.2 | 1.6 | 0.5 | |||||||||
Expected return on plan assets | (1.7 | ) | (1.2 | ) | — | |||||||
Amortization of actuarial net loss | 1.1 | 0.4 | — | |||||||||
Net periodic benefit costs | 1.6 | 1.3 | 0.6 | |||||||||
Net periodic benefit costs associated with MFS | 0.4 | 0.4 | 0.1 | |||||||||
Net periodic benefit costs included in continuing operations | $ | 1.2 | $ | 0.9 | $ | 0.5 |
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Restructuring Reserve Balance as of December 31, 2016 | Restructuring Expenses | Cash Use of Reserve | Non-Cash Use of Reserve | Restructuring Reserve Balance as of March 31, 2017 | |||||||||||||||
Total | $ | 8.2 | $ | 11.7 | $ | 10.3 | $ | 4.7 | $ | 4.9 |
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