þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Incorporated in the State of Indiana | 81-1197930 | |
(I.R.S. Employer Identification No.) |
Large accelerated filer þ | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
ITEM | PAGE | |
PART I | ||
1 | ||
1A | ||
1B | ||
2 | ||
3 | ||
4 | ||
* | ||
PART II | ||
5 | ||
6 | ||
7 | ||
7A | ||
8 | ||
9 | ||
9A | ||
9B | ||
PART III | ||
10 | ||
11 | ||
12 | ||
13 | ||
14 | ||
PART IV | ||
15 | ||
16 | ||
II-1 | ||
II-3 | ||
* | Included pursuant to Instruction 3 to Item 401(b) of Regulation S-K. |
ITEM 1. | DESCRIPTION OF BUSINESS |
ITEM 1A. | RISK FACTORS |
• | possibility of unfavorable circumstances arising from host country laws or regulations; |
• | restrictions on currency repatriation; |
• | potential negative consequences from changes to taxation policies; |
• | the disruption of operations from labor and political disturbances; |
• | our ability to hire and maintain qualified staff in these regions; and |
• | changes in tariff and trade barriers and import and export licensing requirements. |
• | decisions to repatriate non-U.S. earnings for which we have not previously provided for U.S. income taxes; |
• | changes in the geographic mix of our profits among jurisdictions with differing statutory income tax rates; |
• | sustainability of historical income tax rates in the jurisdictions in which we conduct business; |
• | changes in tax laws applicable to us; |
• | expiration, renewal, or application of tax holidays; |
• | the resolution of issues arising from tax audits with various tax authorities; and |
• | changes in the valuation of our deferred tax assets, deferred tax liabilities, and deferred tax asset valuation allowances. |
ITEM 1B. | UNRESOLVED STAFF COMMENTS |
ITEM 2. | PROPERTIES |
Number of Facilities - Owned | ||||||||||||||||||||||||||||||
Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Other | Total | |||||||||||||||||||||||||
Location | # | Area | # | Area | # | Area | # | Area | # | Area | # | Area | ||||||||||||||||||
Manufacturing: | ||||||||||||||||||||||||||||||
North America | 3 | 1,109.0 | 3 | 278.3 | 1 | 357.8 | 3 | 182.6 | — | — | 10 | 1,927.7 | ||||||||||||||||||
Europe | 1 | 356.8 | 6 | 922.2 | 1 | 231.3 | — | — | — | — | 8 | 1,510.3 | ||||||||||||||||||
Asia | 1 | 189.0 | — | — | 1 | 13.4 | — | — | — | — | 2 | 202.4 | ||||||||||||||||||
South America | 1 | 68.0 | — | — | — | — | — | — | — | — | 1 | 68.0 | ||||||||||||||||||
6 | 1,722.8 | 9 | 1,200.5 | 3 | 602.5 | 3 | 182.6 | — | — | 21 | 3,708.4 | |||||||||||||||||||
Non-Manufacturing: | ||||||||||||||||||||||||||||||
North America | 3 | 112.5 | — | — | — | — | — | — | — | — | 3 | 112.5 | ||||||||||||||||||
Europe | — | — | 1 | 38.5 | — | — | — | — | — | — | 1 | 38.5 | ||||||||||||||||||
Asia | — | — | 1 | 8.8 | — | — | — | — | — | — | 1 | 8.8 | ||||||||||||||||||
3 | 112.5 | 2 | 47.3 | — | — | — | — | — | — | 5 | 159.8 |
Number of Facilities - Leased | ||||||||||||||||||||||||||||||
Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Other | Total | |||||||||||||||||||||||||
Location | # | Area | # | Area | # | Area | # | Area | # | Area | # | Area | ||||||||||||||||||
Manufacturing: | ||||||||||||||||||||||||||||||
North America | 3 | 156.0 | 1 | 43.7 | 5 | 178.6 | 3 | 258.5 | — | — | 12 | 636.8 | ||||||||||||||||||
Europe | — | — | 1 | 261.4 | 1 | 52.8 | 1 | 5.5 | — | — | 3 | 319.7 | ||||||||||||||||||
Asia | 2 | 221.5 | 1 | 341.7 | 1 | 294.4 | — | — | — | — | 4 | 857.6 | ||||||||||||||||||
South America | 1 | 12.2 | — | — | — | — | — | — | — | — | 1 | 12.2 | ||||||||||||||||||
6 | 389.7 | 3 | 646.8 | 7 | 525.8 | 4 | 264.0 | — | — | 20 | 1,826.3 | |||||||||||||||||||
Non-Manufacturing: | ||||||||||||||||||||||||||||||
North America | 18 | 432.4 | 3 | 62.8 | 1 | 5.0 | — | — | 2 | 64.6 | 24 | 564.8 | ||||||||||||||||||
Europe | 10 | 133.0 | 2 | 34.4 | 1 | 10.8 | — | — | 1 | 3.2 | 14 | 181.4 | ||||||||||||||||||
Middle East | 2 | 17.3 | — | — | — | — | — | — | — | — | 2 | 17.3 | ||||||||||||||||||
Asia | 12 | 151.6 | 3 | 12.4 | 4 | 7.2 | — | — | 2 | 11.9 | 21 | 183.1 | ||||||||||||||||||
South America | 6 | 220.9 | — | — | — | — | — | — | — | — | 6 | 220.9 | ||||||||||||||||||
48 | 955.2 | 8 | 109.6 | 6 | 23.0 | — | — | 5 | 79.7 | 67 | 1,167.5 |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
Name | Age | Current Title | |
Denise L. Ramos | 60 | Chief Executive Officer and President | |
Farrokh Batliwala | 41 | Senior Vice President and President, Control Technologies and Interconnect Solutions | |
Aris C. Chicles | 55 | Executive Vice President and President, Industrial Process | |
Victoria L. Creamer | 47 | Senior Vice President Human Resources | |
Steven C. Giuliano | 47 | Vice President and Chief Accounting Officer | |
Mary Beth Gustafsson | 57 | Senior Vice President, General Counsel and Chief Compliance Officer | |
Luca Savi | 51 | Executive Vice President and Chief Operating Officer | |
Thomas M. Scalera | 45 | Executive Vice President and Chief Financial Officer |
ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
2016 | 2015 | ||||||||||||||
High | Low | High | Low | ||||||||||||
Three Months Ended: | |||||||||||||||
March 31 | $ | 38.96 | $ | 29.15 | $ | 42.97 | $ | 35.30 | |||||||
June 30 | 39.70 | 30.31 | 43.96 | 39.01 | |||||||||||
September 30 | 36.98 | 30.06 | 42.43 | 32.86 | |||||||||||
December 31 | 43.07 | 32.46 | 40.52 | 32.70 |
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) PERIOD | TOTAL NUMBER OF SHARES PURCHASED | AVERAGE PRICE PAID PER SHARE(1) | TOTAL NUMBER OF SHARES PURCHASED AS PART OF PUBLICLY ANNOUNCED PLANS OR PROGRAMS(2) | MAXIMUM DOLLAR VALUE OF SHARES THAT MAY YET BE PURCHASED UNDER THE PLANS OR PROGRAMS(2) | ||||||||||
10/1/2016 - 10/31/2016 | 0.1 | 35.69 | 0.1 | $ | 170.6 | |||||||||
11/1/2016 - 11/30/2016 | — | — | — | $ | 170.6 | |||||||||
12/1/2016 - 12/31/2016 | — | — | — | $ | 170.6 |
(1) | Average price paid per share is calculated on a settlement basis and includes commissions. |
(2) | On October 27, 2006, our Board of Directors approved a three-year $1 billion Share Repurchase Program. On December 16, 2008, our Board of Directors modified the provisions of the Share Repurchase Program to replace the original three-year term with an indefinite term. As of December 31, 2016, we had repurchased 20.4 shares for $829.4, including commissions, under the Share Repurchase Program. The program is consistent with our capital allocation process, which has centered on those investments necessary to grow our businesses organically and through acquisitions, while also providing cash returns to shareholders. Our strategy for cash flow utilization is to invest in our business, execute strategic acquisitions, pay dividends, and repurchase common stock. |
12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | ||||||||||||||||||
ITT Inc. | $ | 100.00 | $ | 123.46 | $ | 231.33 | $ | 217.74 | $ | 197.85 | $ | 212.91 | |||||||||||
S&P 400 Mid-Cap | $ | 100.00 | $ | 117.81 | $ | 157.23 | $ | 172.54 | $ | 168.77 | $ | 203.76 | |||||||||||
S&P 400 Capital Goods | $ | 100.00 | $ | 125.52 | $ | 177.44 | $ | 177.88 | $ | 168.08 | $ | 221.75 |
ITEM 6. | SELECTED FINANCIAL DATA |
(In Millions, except per share amounts) | 2016(a) | 2015 | 2014 | 2013(a) | 2012 | ||||||||||||||
Results of Operations | |||||||||||||||||||
Revenue | $ | 2,405.4 | $ | 2,485.6 | $ | 2,654.6 | $ | 2,496.9 | $ | 2,227.8 | |||||||||
Gross profit | 758.2 | 809.1 | 866.4 | 799.8 | 680.2 | ||||||||||||||
Gross margin | 31.5 | % | 32.6 | % | 32.6 | % | 32.0 | % | 30.5 | % | |||||||||
Asbestos-related (benefit) costs, net(b) | (25.6 | ) | (91.4 | ) | 3.9 | 32.8 | 50.9 | ||||||||||||
Other operating costs | 524.9 | 520.4 | 596.1 | 583.4 | 477.8 | ||||||||||||||
Operating income | 258.9 | 380.1 | 266.4 | 183.6 | 151.5 | ||||||||||||||
Operating margin | 10.8 | % | 15.3 | % | 10.0 | % | 7.4 | % | 6.8 | % | |||||||||
Income tax expense (benefit)(c) | 76.0 | 70.1 | 71.3 | (309.6 | ) | 39.6 | |||||||||||||
Income from continuing operations attributable to ITT Inc. | 181.9 | 312.4 | 188.4 | 487.7 | 109.5 | ||||||||||||||
Income (loss) from discontinued operations, net of tax(d) | 4.2 | 39.4 | (3.9 | ) | 0.8 | 15.9 | |||||||||||||
Net income attributable to ITT Inc. | $ | 186.1 | $ | 351.8 | $ | 184.5 | $ | 488.5 | $ | 125.4 | |||||||||
Income from continuing operations per basic share | $ | 2.04 | $ | 3.48 | $ | 2.06 | $ | 5.36 | $ | 1.18 | |||||||||
Income (loss) from discontinued operations per basic share | $ | 0.05 | $ | 0.44 | $ | (0.04 | ) | $ | 0.01 | $ | 0.17 | ||||||||
Net income per basic share | $ | 2.09 | $ | 3.92 | $ | 2.02 | $ | 5.37 | $ | 1.35 | |||||||||
Income from continuing operations per diluted share | $ | 2.02 | $ | 3.44 | $ | 2.03 | $ | 5.28 | $ | 1.16 | |||||||||
Income (loss) from discontinued operations per diluted share | $ | 0.05 | $ | 0.44 | $ | (0.04 | ) | $ | 0.01 | $ | 0.17 | ||||||||
Net income per diluted share | $ | 2.07 | $ | 3.88 | $ | 1.99 | $ | 5.29 | $ | 1.33 | |||||||||
Dividends declared | $ | 0.496 | $ | 0.4732 | $ | 0.44 | $ | 0.40 | $ | 0.364 | |||||||||
Financial Position | |||||||||||||||||||
Cash and cash equivalents(e) | $ | 460.7 | $ | 415.7 | $ | 584.0 | $ | 507.3 | $ | 544.5 | |||||||||
Total assets(f) | 3,601.7 | 3,723.6 | 3,631.5 | 3,740.2 | 3,386.1 | ||||||||||||||
Total debt and capital leases | 216.3 | 248.5 | 8.5 | 48.9 | 26.9 |
(a) | On October 5, 2015, we acquired Wolverine, therefore our 2016 Consolidated Financial Statements include an additional nine months of operations compared to 2015 related to this acquisition. On November 28, 2012, we acquired Bornemann GmbH, therefore our 2013 Consolidated Financial Statements include an additional 11 months of operations compared to 2012 related to this acquisition. |
(b) | The asbestos-related benefit in 2015 primarily reflects a $100.7 benefit recognized related to a new single firm defense strategy and streamlined case management that is expected to significantly reduce asbestos defense costs. See Note 18, Commitments and Contingencies, to the Consolidated Financial Statements for further information. |
(c) | The 2013 tax benefit of $309.6 includes the release of a U.S. deferred tax valuation allowance of $374.6 that was initially established in 2011. |
(d) | During 2015, the Company recognized income from discontinued operations of $39.4, principally related to the settlement of the U.S. income tax audit. Income from discontinued operations for 2012 include the results of the Shape Cutting Businesses which was disposed of and sold on November 13, 2012. |
(e) | The decline in cash and cash equivalents from 2014 to 2015 was primarily due to the acquisitions of Wolverine in October of 2015 and Hartzell Aerospace in March of 2015 and an increase of $59.5 in short-term investment deposits. |
(f) | The increase in total assets from 2012 to 2013 is primarily due to the release of a U.S. deferred tax valuation allowance of $374.6. |
ITEM 7. | MANAGEMENT’S DISCUSSION & ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• | A decline in revenue of $80.2, or 3.2% (organic decline of $180.5, or 7%), driven by challenges in the oil & gas, mining and general industrial markets, which were collectively down 21% on an organic basis. The impact of these headwinds was partially offset by organic top-line growth of 9% in the transportation markets, led by automotive brake pads. |
• | Operating income and margin decreased $121.2 and 450 basis points, respectively, as top-line headwinds noted above were only partially offset by the benefits from our Lean transformation and past restructuring actions, automotive brake pad share gains, and incremental operating income related to our acquisition of Wolverine. Further impacting operating income was a $100.7 benefit recognized in 2015 from our estimate of future asbestos-related legal costs. |
• | Income from continuing operations was $2.02 per diluted share ($2.32 per diluted share on an adjusted EPS basis). |
• | We continued optimizing the cost structure of our Industrial Process segment to align with current market conditions. To date, we have successfully executed a reduction in headcount of approximately 30% in addition to reducing the number of operating locations. |
• | Our Motion Technologies segment continued to drive exceptional operating effectiveness thanks to benefits from the World-Class Manufacturing Excellence Program implemented nearly two years ago. In addition, we are starting to see benefits at our Interconnect Solutions facility in North America as we continue to improve operating efficiencies. |
• | We successfully formed our new holding company structure and reorganization allowing us to better manage our legacy liabilities and associated insurance assets. |
• | In North America, our Motion Technologies segment was awarded their largest copper-free platform and also produced other key strategic wins with the "Detroit 3" OEM's. In Asia, MT won business with a major Korean OEM for the first time, and two of MT’s production facilities were certified by a major Korean Tier 1, which makes them the first non-Korean brake pad production site to receive this qualification. Further, the segment delivered an impressive 35% increase in new front-axle brake pad volumes which will expand our technological reach and accelerate future aftermarket demand. |
• | At our Control Technologies segment, we won a $50 multi-year contract with a key Aerospace customer and co-developed an innovative technology with that customer that reduces noise and vibration, while at the same time providing a more comfortable passenger experience and extending the lifespan of helicopter components. |
• | In order to meet growing demand in our Friction business in North America, we have continued to expand our footprint with the construction of a new plant in Mexico in addition to expanding existing facilities in Asia. |
• | We returned $114 to shareholders in the form of a solid quarterly dividend and share repurchases. |
• | We agreed to acquire Axtone Railway Components in the fourth quarter of 2016, which is highly complementary to our KONI business. The acquisition closed on January 26, 2017. |
2016 | 2015 | Change | ||||||||
Revenue | $ | 2,405.4 | $ | 2,485.6 | (3.2 | )% | ||||
Gross profit | 758.2 | 809.1 | (6.3 | )% | ||||||
Gross margin | 31.5 | % | 32.6 | % | (110 | )bp | ||||
Operating expenses | 499.3 | 429.0 | 16.4 | % | ||||||
Operating expense to revenue ratio | 20.8 | % | 17.3 | % | 350 | bp | ||||
Operating income | 258.9 | 380.1 | (31.9 | )% | ||||||
Operating margin | 10.8 | % | 15.3 | % | (450 | )bp | ||||
Interest and non-operating expenses (income), net | 0.5 | (2.2 | ) | (122.7 | )% | |||||
Income tax expense | 76.0 | 70.1 | 8.4 | % | ||||||
Effective tax rate | 29.4 | % | 18.3 | % | 1,110 | bp | ||||
Income from continuing operations attributable to ITT Inc. | 181.9 | 312.4 | (41.8 | )% | ||||||
Income from discontinued operations, net of tax | 4.2 | 39.4 | (89.3 | )% | ||||||
Net income attributable to ITT Inc. | $ | 186.1 | $ | 351.8 | (47.1 | )% |
2016 | 2015 | Change | Organic Revenue Growth(a) | ||||||||||
Industrial Process | $ | 830.1 | $ | 1,113.8 | (25.5 | )% | (22.9 | )% | |||||
Motion Technologies | 983.4 | 767.2 | 28.2 | % | 12.3 | % | |||||||
Interconnect Solutions | 309.6 | 328.1 | (5.6 | )% | (6.1 | )% | |||||||
Control Technologies | 287.0 | 281.2 | 2.1 | % | — | % | |||||||
Eliminations | (4.7 | ) | (4.7 | ) | — | % | — | % | |||||
Total Revenue | $ | 2,405.4 | $ | 2,485.6 | (3.2 | )% | (7.3 | )% |
(a) | See the section titled "Key Performance Indicators and Non-GAAP Measures" for a definition and reconciliation of organic revenue and organic orders. |
2016 | 2015 | Change | ||||||||
General and administrative expenses | $ | 274.1 | 258.3 | 6.1 | % | |||||
Sales and marketing expenses | 170.0 | 183.2 | (7.2 | )% | ||||||
Research and development expenses | 80.8 | 78.9 | 2.4 | % | ||||||
Asbestos-related (benefit) costs, net | (25.6 | ) | (91.4 | ) | (72.0 | )% | ||||
Total operating expenses | $ | 499.3 | $ | 429.0 | 16.4 | % | ||||
By Segment: | ||||||||||
Industrial Process | $ | 212.3 | $ | 221.6 | (4.2 | )% | ||||
Motion Technologies | 139.0 | 101.5 | 36.9 | % | ||||||
Interconnect Solutions | 75.4 | 93.4 | (19.3 | )% | ||||||
Control Technologies | 61.3 | 69.4 | (11.7 | )% | ||||||
Corporate & Other | 11.3 | (56.9 | ) | ** |
2016 | 2015 | Change | ||||||||
Industrial Process | $ | 33.5 | $ | 141.2 | (76.3 | )% | ||||
Motion Technologies | 171.4 | 126.4 | 35.6 | % | ||||||
Interconnect Solutions | 19.1 | 12.2 | 56.6 | % | ||||||
Control Technologies | 46.1 | 42.4 | 8.7 | % | ||||||
Segment operating income | 270.1 | 322.2 | (16.2 | )% | ||||||
Asbestos-related benefit (cost), net | 25.6 | 91.4 | (72.0 | )% | ||||||
Other corporate costs | (36.8 | ) | (33.5 | ) | 9.9 | % | ||||
Total corporate and other (cost) benefit, net | (11.2 | ) | 57.9 | (119.3 | )% | |||||
Total operating income | $ | 258.9 | $ | 380.1 | (31.9 | )% | ||||
Operating margin: | ||||||||||
Industrial Process | 4.0 | % | 12.7 | % | (870 | )bp | ||||
Motion Technologies | 17.4 | % | 16.5 | % | 90 | bp | ||||
Interconnect Solutions | 6.2 | % | 3.7 | % | 250 | bp | ||||
Control Technologies | 16.1 | % | 15.1 | % | 100 | bp | ||||
Segment operating margin | 11.2 | % | 13.0 | % | (180 | )bp | ||||
Consolidated operating margin | 10.8 | % | 15.3 | % | (450 | )bp |
2016 | 2015 | Change | ||||||||
Interest (income) expense, net | $ | (0.8 | ) | $ | (2.5 | ) | (68.0 | )% | ||
Miscellaneous expense (income), net | 1.3 | 0.3 | 333.3 | % | ||||||
Total interest and non-operating expenses (income), net | $ | 0.5 | $ | (2.2 | ) | (122.7 | )% |
2015 | 2014 | Change | ||||||||
Revenue | $ | 2,485.6 | $ | 2,654.6 | (6.4 | )% | ||||
Gross profit | 809.1 | 866.4 | (6.6 | )% | ||||||
Gross margin | 32.6 | % | 32.6 | % | — | |||||
Operating expenses | 429.0 | 600.0 | (28.5 | )% | ||||||
Operating expense to revenue ratio | 17.3 | % | 22.6 | % | (530 | )bp | ||||
Operating income | 380.1 | 266.4 | 42.7 | % | ||||||
Operating margin | 15.3 | % | 10.0 | % | 530 | bp | ||||
Interest and non-operating (income) expenses, net | (2.2 | ) | 4.4 | (150.0 | )% | |||||
Income tax expense | 70.1 | 71.3 | (1.7 | )% | ||||||
Effective tax rate | 18.3 | % | 27.2 | % | (890 | )bp | ||||
Income from continuing operations attributable to ITT Inc. | 312.4 | 188.4 | 65.8 | % | ||||||
Income (loss) from discontinued operations, net of tax | 39.4 | (3.9 | ) | ** | ||||||
Net income attributable to ITT Inc. | $ | 351.8 | $ | 184.5 | 90.7 | % |
2015 | 2014 | Change | Organic Revenue Growth(a) | ||||||||||
Industrial Process | $ | 1,113.8 | $ | 1,208.3 | (7.8 | )% | (2.4 | )% | |||||
Motion Technologies | 767.2 | 769.4 | (0.3 | )% | 9.1 | % | |||||||
Interconnect Solutions | 328.1 | 392.8 | (16.5 | )% | (11.3 | )% | |||||||
Control Technologies | 281.2 | 290.5 | (3.2 | )% | (10.4 | )% | |||||||
Eliminations | (4.7 | ) | (6.4 | ) | (26.6 | )% | — | ||||||
Total Revenue | $ | 2,485.6 | $ | 2,654.6 | (6.4 | )% | (1.2 | )% |
(a) | See the section titled "Key Performance Indicators and Non-GAAP Measures" for a definition and reconciliation of organic revenue and organic orders. |
2015 | 2014 | Change | ||||||||
Sales and marketing expenses | $ | 183.2 | $ | 219.4 | (16.5 | )% | ||||
General and administrative expenses | 258.3 | 300.1 | (13.9 | )% | ||||||
Research and development expenses | 78.9 | 76.6 | 3.0 | % | ||||||
Asbestos-related (benefit) costs, net | (91.4 | ) | 3.9 | ** | ||||||
Total operating expenses | $ | 429.0 | $ | 600.0 | (28.5 | )% | ||||
By Segment: | ||||||||||
Industrial Process | $ | 221.6 | $ | 261.5 | (15.3 | )% | ||||
Motion Technologies | 101.5 | 88.6 | 14.6 | % | ||||||
Interconnect Solutions | 93.4 | 114.6 | (18.5 | )% | ||||||
Control Technologies | 69.4 | 60.4 | 14.9 | % | ||||||
Corporate & Other | (56.9 | ) | 74.9 | ** |
2015 | 2014 | Change | ||||||||
Industrial Process | $ | 141.2 | $ | 123.9 | 14.0 | % | ||||
Motion Technologies | 126.4 | 130.9 | (3.4 | )% | ||||||
Interconnect Solutions | 12.2 | 22.2 | (45.0 | )% | ||||||
Control Technologies | 42.4 | 63.5 | (33.2 | )% | ||||||
Segment operating income | 322.2 | 340.5 | (5.4 | )% | ||||||
Asbestos-related benefit (cost), net | 91.4 | (3.9 | ) | ** | ||||||
Other corporate costs | (33.5 | ) | (70.2 | ) | (52.3 | )% | ||||
Total corporate and other benefit (costs), net | 57.9 | (74.1 | ) | (178.1 | )% | |||||
Total operating income | $ | 380.1 | $ | 266.4 | 42.7 | % | ||||
Operating margin: | ||||||||||
Industrial Process | 12.7 | % | 10.3 | % | 240 | bp | ||||
Motion Technologies | 16.5 | % | 17.0 | % | (50 | )bp | ||||
Interconnect Solutions | 3.7 | % | 5.7 | % | (200 | )bp | ||||
Control Technologies | 15.1 | % | 21.9 | % | (680 | )bp | ||||
Segment operating margin | 13.0 | % | 12.8 | % | 20 | bp | ||||
Consolidated operating margin | 15.3 | % | 10.0 | % | 530 | bp |
2015 | 2014 | Change | ||||||||
Interest (income) expense, net | $ | (2.5 | ) | $ | 1.5 | (266.7 | )% | |||
Miscellaneous expense (income), net | 0.3 | 2.9 | (89.7 | )% | ||||||
Total interest and non-operating (income) expenses, net | $ | (2.2 | ) | $ | 4.4 | (150.0 | )% |
Rating Agency | Short-Term Ratings | Long-Term Ratings | |
Standard & Poor’s | A-2 | BBB | |
Moody’s Investors Service | P-3 | Baa3 | |
Fitch Ratings | F2 | BBB+ |
2016 | 2015 | 2014 | |||||||||
Operating activities | $ | 240.7 | $ | 229.7 | $ | 244.7 | |||||
Investing activities | (54.4 | ) | (485.5 | ) | (14.5 | ) | |||||
Financing activities | (141.9 | ) | 120.4 | (116.6 | ) | ||||||
Foreign exchange | (11.4 | ) | (31.6 | ) | (31.2 | ) | |||||
Total net cash flow provided by (used in) continuing operations | $ | 33.0 | $ | (167.0 | ) | $ | 82.4 | ||||
Net cash provided by (used in) discontinued operations | 12.0 | (1.3 | ) | (5.7 | ) | ||||||
Net change in cash and cash equivalents | $ | 45.0 | $ | (168.3 | ) | $ | 76.7 |
2016 | 2015 | ||||||||||||||||||||||||||||||
U.S. Pension | Non-U.S. Pension | Other Benefits | Total | U.S. Pension | Non-U.S. Pension | Other Benefits | Total | ||||||||||||||||||||||||
Fair value of plan assets | $ | 262.2 | $ | 0.9 | $ | 6.1 | $ | 269.2 | $ | 278.1 | $ | 0.9 | $ | 7.9 | $ | 286.9 | |||||||||||||||
Projected benefit obligation | 312.3 | 79.9 | 138.8 | 531.0 | 339.9 | 78.0 | 143.4 | 561.3 | |||||||||||||||||||||||
Funded status | $ | (50.1 | ) | $ | (79.0 | ) | $ | (132.7 | ) | $ | (261.8 | ) | $ | (61.8 | ) | $ | (77.1 | ) | $ | (135.5 | ) | $ | (274.4 | ) |
2016 | 2015 | ||||||
Current portion of long-term debt and capital leases | $ | 0.8 | $ | 1.2 | |||
Non-current portion of long-term debt and capital leases | 2.0 | 2.8 | |||||
Total long-term debt and capital leases | $ | 2.8 | $ | 4.0 |
Payments Due By Period | |||||||||||||||||||
Contractual Obligations | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | ||||||||||||||
Long-term debt, including interest and capital leases | $ | 3.0 | $ | 1.0 | $ | 1.1 | $ | 0.7 | $ | 0.2 | |||||||||
Operating leases | 156.7 | 22.8 | 39.4 | 31.5 | 63.0 | ||||||||||||||
Purchase obligations(a) | 85.3 | 74.3 | 10.9 | 0.1 | — | ||||||||||||||
Other long-term obligations(b) | 110.1 | 16.1 | 30.7 | 30.5 | 32.8 | ||||||||||||||
Total | $ | 355.1 | $ | 114.2 | $ | 82.1 | $ | 62.8 | $ | 96.0 |
(a) | Represents unconditional purchase agreements that are enforceable and legally binding and that specify all significant terms to purchase goods or services, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase agreements that are cancellable without penalty have been excluded. |
(b) | Other long-term obligations include amounts recorded on our December 31, 2016 Consolidated Balance Sheet, including estimated environmental payments and employee compensation agreements. We estimate based on historical experience that we will spend between $10 and $15 per year on environmental investigation and remediation, a portion of which we are legally mandated to perform through various orders and agreements with state and federal oversight agencies. At December 31, 2016, our recorded environmental liability was $76.6. |
• | "organic revenue" and "organic orders" are defined as revenue and orders, excluding the impacts of foreign currency fluctuations, acquisitions and divestitures. Divestitures include sales of portions of our business that did not meet the criteria for presentation as a discontinued operation. The period-over-period change resulting from foreign currency fluctuations is estimated using a fixed exchange rate for both the current and prior periods. Management believes that reporting organic revenue and organic orders provides useful information to investors by helping identify underlying trends in our business and facilitating easier comparisons of our revenue performance with prior and future periods and to our peers. |
Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Eliminations | Total ITT | ||||||||||||||||||
2016 Revenue | $ | 830.1 | $ | 983.4 | $ | 309.6 | $ | 287.0 | $ | (4.7 | ) | $ | 2,405.4 | ||||||||||
(Acquisitions)/divestitures, net | — | (126.4 | ) | — | (5.4 | ) | — | (131.8 | ) | ||||||||||||||
Foreign currency translation | 28.7 | 4.7 | (1.5 | ) | (0.5 | ) | 0.1 | 31.5 | |||||||||||||||
2016 Organic revenue | $ | 858.8 | $ | 861.7 | $ | 308.1 | $ | 281.1 | $ | (4.6 | ) | $ | 2,305.1 | ||||||||||
2015 Revenue | 1,113.8 | 767.2 | 328.1 | 281.2 | (4.7 | ) | 2,485.6 | ||||||||||||||||
Organic (decline)/growth | (22.9 | )% | 12.3 | % | (6.1 | )% | — | % | (7.3 | )% | |||||||||||||
2015 Revenue | $ | 1,113.8 | $ | 767.2 | $ | 328.1 | $ | 281.2 | $ | (4.7 | ) | $ | 2,485.6 | ||||||||||
(Acquisitions)/divestitures, net | (0.1 | ) | (34.9 | ) | — | (22.7 | ) | — | (57.7 | ) | |||||||||||||
Foreign currency translation | 65.0 | 106.8 | 20.3 | 1.7 | — | 193.8 | |||||||||||||||||
2015 Organic revenue | $ | 1,178.7 | $ | 839.1 | $ | 348.4 | $ | 260.2 | $ | (4.7 | ) | $ | 2,621.7 | ||||||||||
2014 Revenue | 1,208.3 | 769.4 | 392.8 | 290.5 | (6.4 | ) | 2,654.6 | ||||||||||||||||
Organic growth/(decline) | (2.4 | )% | 9.1 | % | (11.3 | )% | (10.4 | )% | (1.2 | )% |
Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Eliminations | Total ITT | ||||||||||||||||||
2016 Orders | $ | 779.1 | $ | 998.4 | $ | 309.5 | $ | 292.9 | $ | (5.1 | ) | $ | 2,374.8 | ||||||||||
(Acquisitions)/divestitures, net | — | (126.8 | ) | — | (8.8 | ) | — | (135.6 | ) | ||||||||||||||
Foreign currency translation | 23.6 | 4.5 | (1.3 | ) | (0.4 | ) | 0.1 | 26.5 | |||||||||||||||
2016 Organic orders | $ | 802.7 | $ | 876.1 | $ | 308.2 | $ | 283.7 | $ | (5.0 | ) | $ | 2,265.7 | ||||||||||
2015 Orders | 936.7 | 780.0 | 324.3 | 294.3 | (4.7 | ) | 2,330.6 | ||||||||||||||||
Organic (decline)/growth | (14.3 | )% | 12.3 | % | (5.0 | )% | (3.6 | )% | (2.8 | )% | |||||||||||||
2015 Orders | $ | 936.7 | $ | 780.0 | $ | 324.3 | $ | 294.3 | $ | (4.7 | ) | $ | 2,330.6 | ||||||||||
(Acquisitions)/divestitures, net | (0.1 | ) | (40.1 | ) | — | (27.2 | ) | — | (67.4 | ) | |||||||||||||
Foreign currency translation | 57.8 | 110.0 | 20.0 | 1.8 | — | 189.6 | |||||||||||||||||
2015 Organic orders | $ | 994.4 | $ | 849.9 | $ | 344.3 | $ | 268.9 | $ | (4.7 | ) | $ | 2,452.8 | ||||||||||
2014 Orders | 1,214.2 | 797.0 | 388.4 | 289.2 | (5.8 | ) | 2,683.0 | ||||||||||||||||
Organic growth/(decline) | (18.1 | )% | 6.6 | % | (11.4 | )% | (7.0 | )% | (8.6 | )% |
• | "adjusted segment operating income" is defined as operating income, adjusted to exclude special items that include, but are not limited to, restructuring costs, realignment costs, certain asset impairment charges, certain acquisition-related expenses, and other unusual or infrequent operating items. Special items represent significant charges or credits that impact current results, which management views as unrelated to the Company's ongoing operations and performance. We believe that adjusted segment operating income is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors |
Year Ended December 31, 2016 | Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Total Segment | |||||||||||||||
Segment operating income | $ | 33.5 | $ | 171.4 | $ | 19.1 | $ | 46.1 | $ | 270.1 | ||||||||||
Restructuring costs | 20.5 | 2.5 | 0.1 | 1.4 | 24.5 | |||||||||||||||
Acquisition-related expenses | — | 4.3 | — | 1.5 | 5.8 | |||||||||||||||
Other unusual or infrequent items(a) | 7.5 | (0.1 | ) | — | 4.5 | 11.9 | ||||||||||||||
Adjusted segment operating income | $ | 61.5 | $ | 178.1 | $ | 19.2 | $ | 53.5 | $ | 312.3 | ||||||||||
Year Ended December 31, 2015 | ||||||||||||||||||||
Segment operating income | $ | 141.2 | $ | 126.4 | $ | 12.2 | $ | 42.4 | $ | 322.2 | ||||||||||
Restructuring costs | 12.2 | — | 6.3 | 5.3 | 23.8 | |||||||||||||||
Acquisition-related expenses | (6.7 | ) | 13.1 | — | 1.4 | 7.8 | ||||||||||||||
Other unusual or infrequent items | (0.8 | ) | — | 0.4 | 0.8 | 0.4 | ||||||||||||||
Adjusted segment operating income | $ | 145.9 | $ | 139.5 | $ | 18.9 | $ | 49.9 | $ | 354.2 | ||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Segment operating income | $ | 123.9 | $ | 130.9 | $ | 22.2 | $ | 63.5 | $ | 340.5 | ||||||||||
Restructuring costs | 4.2 | 2.1 | 20.5 | — | 26.8 | |||||||||||||||
Other unusual or infrequent items(b) | 2.3 | — | 9.5 | — | 11.8 | |||||||||||||||
Adjusted segment operating income | $ | 130.4 | $ | 133.0 | $ | 52.2 | $ | 63.5 | $ | 379.1 |
(a) | The adjustments for other unusual or infrequent items during 2016 include a $4.1 impairment of intangible assets and pension settlement costs of $3.4 at Industrial Process, and $4.5 of realignment costs at Control Technologies associated with an action to move certain production lines. |
(b) | The adjustments for other unusual or infrequent items during 2014 include realignment costs at Interconnect Solutions associated with an action to move certain production lines and enterprise resource planning (ERP) global template design costs and foreign exchange-related impacts at Industrial Process associated with our operations in Venezuela. |
• | "adjusted income from continuing operations" and "adjusted income from continuing operations per diluted share" are defined as income from continuing operations attributable to ITT Inc. and income from continuing operations attributable to ITT Inc. per diluted share, adjusted to exclude special items that include, but are not limited to, asbestos-related costs, restructuring costs, realignment costs, certain asset impairment charges, certain acquisition-related expenses, income tax settlements or adjustments, and other unusual or infrequent non-operating items. Special items represent significant charges or credits, on an after-tax basis, that impact current results which management views as unrelated to the Company's ongoing operations and performance. The after-tax basis of each special item is determined using the jurisdictional tax rate of where the expense or benefit occurred. We believe that adjusted income from continuing operations is useful to investors and other users of our financial statements in evaluating ongoing operating profitability, as well as in evaluating operating performance in relation to our competitors. |
2016 | 2015 | 2014 | |||||||||
Income from continuing operations attributable to ITT Inc. | $ | 181.9 | $ | 312.4 | $ | 188.4 | |||||
Restructuring costs, net of tax benefit of $7.1, $5.5, and $8.6, respectively | 19.2 | 18.5 | 19.5 | ||||||||
Asbestos-related (benefit) costs, net of tax (expense) benefit of $(9.5), $(33.8), and $1.4, respectively | (16.1 | ) | (57.6 | ) | 2.5 | ||||||
Pension settlement, net of tax benefit of $4.7, $0.0, and $0.0, respectively | 8.0 | — | — | ||||||||
Tax-related special items(a) | 5.9 | (37.1 | ) | 3.8 | |||||||
Realignment costs, net of tax benefit of $2.4, $0.9, and $3.2, respectively(b) | 4.8 | 1.4 | 6.2 | ||||||||
Acquisition-related costs, net of tax benefit of $2.2, $5.3, and $0.0, respectively | 3.6 | 2.5 | — | ||||||||
Other unusual or infrequent items, net of tax of (expense) benefit of $(0.1), $2.0, and $3.2, respectively(c) | 0.8 | (8.4 | ) | 8.4 | |||||||
Adjusted income from continuing operations | $ | 208.1 | $ | 231.7 | $ | 228.8 | |||||
Income from continuing operations attributable to ITT Inc. per diluted share | $ | 2.02 | $ | 3.44 | $ | 2.03 | |||||
Adjusted income from continuing operations per diluted share | $ | 2.32 | $ | 2.55 | $ | 2.47 |
(a) | The following table details significant components of the tax-related special items. See Note 5, Income Taxes, to our Consolidated Financial Statements for further information. |
2016 | 2015 | 2014 | |||||||||
Charge on undistributed foreign earnings | $ | 24.7 | $ | (7.4 | ) | $ | 0.8 | ||||
Change in uncertain tax positions | (14.5 | ) | (15.1 | ) | 0.4 | ||||||
Change in deferred tax asset valuation allowance | (0.2 | ) | (7.3 | ) | 2.5 | ||||||
Impacts of tax audit closure | 0.1 | (7.0 | ) | 0.7 | |||||||
Other | (4.2 | ) | (0.3 | ) | (0.6 | ) | |||||
Net tax-related special items | $ | 5.9 | $ | (37.1 | ) | $ | 3.8 |
(b) | Realignment costs include expenses to relocate certain production lines and enterprise resource planning (ERP) global template design costs. |
(c) | Other unusual or infrequent items, net of tax, for 2016 include an impairment of a trade name and a reversal of accrued interest related to uncertain tax positions. |
• | "adjusted free cash flow" is defined as net cash provided by operating activities less capital expenditures, adjusted for cash payments for restructuring costs, realignment actions, net asbestos cash flows and other significant items that impact current results which management views as unrelated to the Company's ongoing operations and performance. Due to other financial obligations and commitments, including asbestos, the entire free cash flow may not be available for discretionary purposes. We believe that adjusted free cash flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated by our operations. A reconciliation of adjusted free cash flow is provided below. |
• | "adjusted free cash flow conversion" is defined as adjusted free cash flow divided by adjusted income from continuing operations. |
2016 | 2015 | 2014 | |||||||||
Net cash from continuing operations | $ | 240.7 | $ | 229.7 | $ | 244.7 | |||||
Capital expenditures | (111.4 | ) | (86.7 | ) | (118.8 | ) | |||||
Restructuring cash payments | 30.3 | 24.4 | 18.6 | ||||||||
Net asbestos cash flows | 31.5 | 24.6 | 3.9 | ||||||||
Other cash payments(a) | 9.4 | 7.6 | 24.6 | ||||||||
Adjusted free cash flow | $ | 200.5 | $ | 199.6 | $ | 173.0 | |||||
Adjusted income from continuing operations | 208.1 | 231.7 | 228.8 | ||||||||
Adjusted free cash flow conversion | 96.3 | % | 86.1 | % | 75.6 | % |
(a) | Other cash payments during 2016 and 2015 include discretionary pension contributions, net of tax and realignment-related cash payments. Other cash payments during 2014 include realignment-related cash payments associated with an action to move certain production lines and develop an ERP global template. |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
ITEM 9A. | CONTROLS AND PROCEDURES |
ITEM 9B. | OTHER INFORMATION |
/s/ Deloitte & Touche LLP |
Stamford, Connecticut |
February 17, 2017 |
ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. | EXECUTIVE COMPENSATION |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE |
ITEM 14. | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
(a) | Documents filed as a part of this report: |
1. | See Index to Consolidated Financial Statements appearing on page 58 for a list of the financial statements filed as a part of this report. |
2. | See Exhibit Index beginning on pages II-3 for a list of the exhibits filed or incorporated herein as a part of this report. |
(b) | Financial Statement Schedules are omitted because of the absence of the conditions under which they are required or because the required information is included in the Consolidated Financial Statements filed as part of this report. |
ITEM 16. | FORM 10-K SUMMARY |
ITEM | PAGE |
/s/ Deloitte & Touche LLP |
Stamford, Connecticut |
February 17, 2017 |
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) YEARS ENDED DECEMBER 31 | 2016 | 2015 | 2014 | ||||||||
Revenue | $ | $ | $ | ||||||||
Costs of revenue | |||||||||||
Gross profit | |||||||||||
General and administrative expenses | |||||||||||
Sales and marketing expenses | |||||||||||
Research and development expenses | |||||||||||
Asbestos-related (benefit) costs, net | ( | ) | ( | ) | |||||||
Operating income | |||||||||||
Interest and non-operating expenses (income), net | ( | ) | |||||||||
Income from continuing operations before income tax | |||||||||||
Income tax expense | |||||||||||
Income from continuing operations | |||||||||||
Income (loss) from discontinued operations, including tax (expense) benefit of $(0.3), $24.5, and $4.8, respectively | ( | ) | |||||||||
Net income | |||||||||||
Less: Income (loss) attributable to noncontrolling interests | ( | ) | |||||||||
Net income attributable to ITT Inc. | $ | $ | $ | ||||||||
Amounts attributable to ITT Inc.: | |||||||||||
Income from continuing operations, net of tax | $ | $ | $ | ||||||||
Income (loss) from discontinued operations, net of tax | ( | ) | |||||||||
Net income | $ | $ | $ | ||||||||
Earnings (loss) per share attributable to ITT Inc.: | |||||||||||
Basic earnings per share: | |||||||||||
Continuing operations | $ | $ | $ | ||||||||
Discontinued operations | ( | ) | |||||||||
Net income | $ | $ | $ | ||||||||
Diluted earnings per share: | |||||||||||
Continuing operations | $ | $ | $ | ||||||||
Discontinued operations | ( | ) | |||||||||
Net income | $ | $ | $ | ||||||||
Weighted average common shares – basic | |||||||||||
Weighted average common shares – diluted | |||||||||||
Cash dividends declared per common share | $ | $ | $ |
(IN MILLIONS) YEARS ENDED DECEMBER 31 | 2016 | 2015 | 2014 | ||||||||
Net income | $ | $ | $ | ||||||||
Other comprehensive (loss) income: | |||||||||||
Net foreign currency translation adjustment | ( | ) | ( | ) | ( | ) | |||||
Net change in postretirement benefit plans, net of tax impacts of $(6.9), $9.8, and $2.6, respectively | ( | ) | ( | ) | |||||||
Net change investment securities, net of tax impacts of $0.1, $0, and $0, respectively | |||||||||||
Other comprehensive loss | ( | ) | ( | ) | ( | ) | |||||
Comprehensive income | |||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | ( | ) | |||||||||
Comprehensive income attributable to ITT Inc. | $ | $ | $ | ||||||||
Disclosure of reclassification adjustments and other adjustments to postretirement benefit plans (See Note 15) | |||||||||||
Reclassification adjustments: | |||||||||||
Amortization of prior service benefit, net of tax expense of $2.1, $3.8, and $2.2, respectively | ( | ) | ( | ) | ( | ) | |||||
Amortization of net actuarial loss, net of tax benefit of $(4.4), $(4.5), and $(3.1), respectively | |||||||||||
Gain on plan curtailment, net of tax expense of $0.0, $1.6, and $0.0, respectively | ( | ) | |||||||||
Loss on plan settlement, net of tax benefit of $(4.7), $0.0, and $0.0, respectively | |||||||||||
Other adjustments: | |||||||||||
Prior service (cost) credit, net of tax benefit (expense) of $0.0, $0.7, and$(19.7), respectively | ( | ) | ( | ) | |||||||
Net actuarial loss, net of tax benefit of $0.1, $8.2, and $23.2, respectively | ( | ) | ( | ) | ( | ) | |||||
Unrealized change from foreign currency translation | |||||||||||
Net change in postretirement benefit plans, net of tax | ( | ) | ( | ) | |||||||
Disclosure of reclassification adjustments to investment securities | |||||||||||
Realized loss on investing securities, net of tax benefit of $0.1, $0.0, and $0.0 |
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS) DECEMBER 31 | 2016 | 2015 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Receivables, net | |||||||
Inventories, net | |||||||
Other current assets | |||||||
Total current assets | |||||||
Plant, property and equipment, net | |||||||
Goodwill | |||||||
Other intangible assets, net | |||||||
Asbestos-related assets | |||||||
Deferred income taxes | |||||||
Other non-current assets | |||||||
Total non-current assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Short-term loans and current maturities of long-term debt | $ | $ | |||||
Accounts payable | |||||||
Accrued liabilities | |||||||
Total current liabilities | |||||||
Asbestos-related liabilities | |||||||
Postretirement benefits | |||||||
Other non-current liabilities | |||||||
Total non-current liabilities | |||||||
Total liabilities | |||||||
Shareholders’ equity: | |||||||
Common stock: | |||||||
Authorized - 250 shares, $1 par value per share (88.4 and 104.5 shares issued, respectively) | |||||||
Outstanding - 88.4 and 89.5 shares, respectively | |||||||
Retained earnings | |||||||
Accumulated other comprehensive loss: | |||||||
Postretirement benefit plans | ( | ) | ( | ) | |||
Cumulative translation adjustments | ( | ) | ( | ) | |||
Unrealized loss on investment securities | ( | ) | |||||
Total ITT Inc. shareholders' equity | |||||||
Noncontrolling interests | |||||||
Total shareholders’ equity | |||||||
Total liabilities and shareholders’ equity | $ | $ |
(IN MILLIONS) YEARS ENDED DECEMBER 31 | 2016 | 2015 | 2014 | ||||||||
Operating Activities | |||||||||||
Net income | $ | $ | $ | ||||||||
Less: Income (loss) from discontinued operations | ( | ) | |||||||||
Less: Income (loss) attributable to noncontrolling interests | ( | ) | |||||||||
Income from continuing operations attributable to ITT Inc. | |||||||||||
Adjustments to income from continuing operations | |||||||||||
Depreciation and amortization | |||||||||||
Equity-based compensation | |||||||||||
Asbestos-related (benefit) costs, net | ( | ) | ( | ) | |||||||
Deferred income taxes | ( | ) | |||||||||
Asbestos-related payments, net | ( | ) | ( | ) | ( | ) | |||||
Contributions to postretirement plans | ( | ) | ( | ) | ( | ) | |||||
Changes in assets and liabilities: | |||||||||||
Change in receivables | ( | ) | ( | ) | |||||||
Change in inventories | ( | ) | ( | ) | |||||||
Change in accounts payable | ( | ) | |||||||||
Change in accrued expenses | ( | ) | ( | ) | ( | ) | |||||
Change in accrued income taxes | ( | ) | ( | ) | ( | ) | |||||
Other, net | |||||||||||
Net Cash – Operating activities | |||||||||||
Investing Activities | |||||||||||
Capital expenditures | ( | ) | ( | ) | ( | ) | |||||
Acquisitions, net of cash acquired | ( | ) | ( | ) | ( | ) | |||||
Purchases of investments | ( | ) | ( | ) | ( | ) | |||||
Maturities of investments | |||||||||||
Proceeds from sale of businesses and other assets | |||||||||||
Proceeds from insurance recovery | |||||||||||
Other, net | ( | ) | ( | ) | |||||||
Net Cash – Investing activities | ( | ) | ( | ) | ( | ) | |||||
Financing Activities | |||||||||||
Commercial paper, net borrowings (repayments) | ( | ) | |||||||||
Short-term revolving loans, borrowings | |||||||||||
Short-term revolving loans, repayments | ( | ) | ( | ) | |||||||
Long-term debt, repaid | ( | ) | ( | ) | ( | ) | |||||
Repurchase of common stock | ( | ) | ( | ) | ( | ) | |||||
Dividends paid | ( | ) | ( | ) | ( | ) | |||||
Proceeds from issuance of common stock | |||||||||||
Excess tax benefit from equity compensation activity | |||||||||||
Other, net | ( | ) | ( | ) | ( | ) | |||||
Net Cash – Financing activities | ( | ) | ( | ) | |||||||
Exchange rate effects on cash and cash equivalents | ( | ) | ( | ) | ( | ) | |||||
Net cash from discontinued operations – operating activities | ( | ) | ( | ) | |||||||
Net change in cash and cash equivalents | ( | ) | |||||||||
Cash and cash equivalents – beginning of year | |||||||||||
Cash and Cash Equivalents – End of Period | $ | $ | $ | ||||||||
Supplemental Cash Flow Disclosures | |||||||||||
Cash paid (received) during the year for: | |||||||||||
Interest | $ | $ | $ | ||||||||
Income taxes, net of refunds received |
(IN MILLIONS) | SHARES | DOLLARS | ||||||||||||||||||
YEARS ENDED DECEMBER 31 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||
Common Stock | ||||||||||||||||||||
Common stock, beginning balance | $ | $ | $ | |||||||||||||||||
Activity from stock incentive plans | ||||||||||||||||||||
Share repurchases | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Common stock, ending balance | $ | $ | $ | |||||||||||||||||
Retained Earnings | ||||||||||||||||||||
Retained earnings, beginning balance | $ | $ | $ | |||||||||||||||||
Net income attributable to ITT Inc. | ||||||||||||||||||||
Dividends declared | ( | ) | ( | ) | ( | ) | ||||||||||||||
Activity from stock incentive plans | ||||||||||||||||||||
Share repurchases | ( | ) | ( | ) | ( | ) | ||||||||||||||
Purchase of noncontrolling interest | ( | ) | ||||||||||||||||||
Retained earnings, ending balance | $ | $ | $ | |||||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||||||||
Postretirement benefit plans, beginning balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||
Net change in postretirement benefit plans | ( | ) | ( | ) | ||||||||||||||||
Postretirement benefit plans, ending balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||
Cumulative translation adjustment, beginning balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||
Net cumulative translation adjustment | ( | ) | ( | ) | ( | ) | ||||||||||||||
Cumulative translation adjustments, ending balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||
Unrealized (loss) gain on investment securities, beginning balance | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||
Net change in investment securities | ||||||||||||||||||||
Unrealized (loss) gain on investment securities, ending balance | $ | $ | ( | ) | $ | ( | ) | |||||||||||||
Total accumulated other comprehensive loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||||||||
Noncontrolling Interests | ||||||||||||||||||||
Noncontrolling interests, beginning balance | $ | $ | $ | |||||||||||||||||
Income (loss) attributable to noncontrolling interests | ( | ) | ||||||||||||||||||
Dividend to noncontrolling interest shareholders | ( | ) | ( | ) | ||||||||||||||||
Noncontrolling interest acquired | ||||||||||||||||||||
Purchase of noncontrolling interests | ( | ) | ||||||||||||||||||
Other | ||||||||||||||||||||
Noncontrolling interests, ending balance | $ | $ | $ | |||||||||||||||||
Total Shareholders’ Equity | ||||||||||||||||||||
Total shareholders’ equity, beginning balance | $ | $ | $ | |||||||||||||||||
Net change in common stock | ( | ) | ( | ) | ||||||||||||||||
Net change in retained earnings | ||||||||||||||||||||
Net change in accumulated other comprehensive loss | ( | ) | ( | ) | ( | ) | ||||||||||||||
Net change in noncontrolling interests | ( | ) | ( | ) | ( | ) | ||||||||||||||
Total shareholders’ equity, ending balance | $ | $ | $ |
• | Excess tax benefits and deficiencies will no longer be recognized as a change in additional paid-in-capital in the equity section of the Balance Sheet, instead they are to be recognized in the Statements of Operations as a tax expense or benefit. In the Statement of Cash Flows, excess tax benefits and deficiencies will no longer be classified as a financing activity, instead they will be classified as an operating activity. These provisions will be adopted using a prospective method of transition. The impact of this change in accounting to future periods cannot be estimated, as it is dependent upon several variables not in control of the Company, such as the future timing and amount of employee option exercises, restricted stock vesting, and the Company's future stock price. |
• | Entities will have the option to continue to reduce share-based compensation expense during the vesting period of outstanding awards for estimated future employee forfeitures or they may elect to recognize the impact of forfeitures as they actually occur. We have opted to change our accounting policy, such that beginning January 1, 2017, we will begin to recognize the impact of forfeitures as they actually occur. We will adopt this provision utilizing the modified retrospective approach, resulting in a cumulative-effect adjustment reducing retained earnings approximately $ |
• | The ASU also provides new guidance to other areas of the standard including minimum statutory tax withholding rules and the calculation of diluted common shares outstanding. The adoption of this provision will be reflected prospectively in the financial statements and is not expected to have a material impact on our financial statements. |
Revenue | Operating Income (Loss) | Operating Margin | ||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||
Industrial Process | $ | $ | $ | $ | $ | $ | % | % | % | |||||||||||||||||||||||
Motion Technologies | % | % | % | |||||||||||||||||||||||||||||
Interconnect Solutions | % | % | % | |||||||||||||||||||||||||||||
Control Technologies | % | % | % | |||||||||||||||||||||||||||||
Total segment results | % | % | % | |||||||||||||||||||||||||||||
Asbestos-related benefit (costs), net | — | — | — | ( | ) | — | — | — | ||||||||||||||||||||||||
Eliminations / Other corporate costs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | — | — | — | |||||||||||||||||
Total Eliminations / Corporate and Other costs | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | — | — | — | |||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | % | % | % |
Assets | Capital Expenditures | Depreciation and Amortization | |||||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||||||||
Industrial Process | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Motion Technologies | |||||||||||||||||||||||||||||||
Interconnect Solutions | |||||||||||||||||||||||||||||||
Control Technologies | |||||||||||||||||||||||||||||||
Corporate and Other | |||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ |
Revenue(a) | |||||||||||
Geographic Information | 2016 | 2015 | 2014 | ||||||||
United States | $ | $ | $ | ||||||||
Germany | |||||||||||
Other developed markets | |||||||||||
Other emerging markets | |||||||||||
Total | $ | $ | $ |
(a) |
Plant, Property & Equipment, Net | |||||||
Geographic Information | 2016 | 2015 | |||||
United States | $ | $ | |||||
Italy | |||||||
China | |||||||
Germany | |||||||
South Korea | |||||||
Other developed markets | |||||||
Other emerging markets | |||||||
Total | $ | $ |
2016 | 2015 | 2014 | |||||||||
Pumps and complementary products | $ | $ | $ | ||||||||
Pump support and maintenance services | |||||||||||
Brake component products | |||||||||||
Shock absorber equipment | |||||||||||
Connectors equipment | |||||||||||
CT Aerospace products | |||||||||||
CT Industrial products | |||||||||||
Total | $ | $ | $ |
2016 | 2015 | 2014 | |||||||||
By component: | |||||||||||
Severance costs | $ | $ | $ | ||||||||
Asset write-offs | |||||||||||
Other restructuring costs | |||||||||||
Total restructuring costs | $ | $ | $ | ||||||||
By segment: | |||||||||||
Industrial Process | $ | $ | $ | ||||||||
Motion Technologies | |||||||||||
Interconnect Solutions | |||||||||||
Control Technologies | |||||||||||
Corporate and Other |
2016 | 2015 | ||||||
Restructuring accruals - beginning balance | $ | $ | |||||
Restructuring costs | |||||||
Cash payments | ( | ) | ( | ) | |||
Asset write-offs | ( | ) | ( | ) | |||
Foreign exchange translation and other | ( | ) | ( | ) | |||
Restructuring accrual - ending balance | $ | $ | |||||
By accrual type: | |||||||
Severance accrual | $ | $ | |||||
Facility carrying and other costs accrual |
2016 | 2015 | ||||||
Restructuring accruals - beginning balance | $ | $ | |||||
Restructuring costs | |||||||
Cash payments | ( | ) | ( | ) | |||
Asset write-offs | ( | ) | ( | ) | |||
Foreign exchange translation | ( | ) | ( | ) | |||
Restructuring accruals - ending balance | $ | $ |
2016 | 2015 | ||||||
Restructuring accruals - beginning balance | $ | $ | |||||
Restructuring costs | |||||||
Cash payments | ( | ) | ( | ) | |||
Asset Write-Offs | |||||||
Foreign exchange translation | ( | ) | ( | ) | |||
Restructuring accruals - ending balance | $ | $ |
2016 | 2015 | 2014 | |||||||||
Income components: | |||||||||||
United States | $ | $ | $ | ||||||||
International | |||||||||||
Income from continuing operations before income tax | |||||||||||
Income tax expense (benefit) components: | |||||||||||
Current income tax expense (benefit): | |||||||||||
United States – federal | ( | ) | |||||||||
United States – state and local | ( | ) | |||||||||
International | |||||||||||
Total current income tax expense | |||||||||||
Deferred income tax expense (benefit) components: | |||||||||||
United States – federal | ( | ) | |||||||||
United States – state and local | ( | ) | |||||||||
International | ( | ) | ( | ) | ( | ) | |||||
Total deferred income tax (benefit) expense | ( | ) | |||||||||
Income tax expense | $ | $ | $ | ||||||||
Effective income tax rate | % | % | % |
2016 | 2015 | 2014 | ||||||
Tax provision at U.S. statutory rate | % | % | % | |||||
Tax exempt interest | ( | )% | ( | )% | ( | )% | ||
Audit settlements & unrecognized tax benefits | ( | )% | ( | )% | % | |||
Tax on undistributed foreign earnings | % | ( | )% | ( | )% | |||
U.S. tax on foreign earnings | % | % | % | |||||
Foreign tax rate differential | ( | )% | ( | )% | ( | )% | ||
U.S. permanent items | ( | )% | ( | )% | ( | )% | ||
Valuation allowance on deferred tax assets | % | % | % | |||||
Other adjustments | ( | )% | ( | )% | ( | )% | ||
State and local income tax | ( | )% | % | % | ||||
Foreign tax holiday | % | ( | )% | ( | )% | |||
Effective income tax rate | % | % | % |
2016 | 2015 | ||||||
Deferred Tax Assets: | |||||||
Asbestos | $ | $ | |||||
Loss carryforwards | |||||||
Employee benefits | |||||||
Accruals | |||||||
Credit carryforwards | |||||||
Other | |||||||
Gross deferred tax assets | |||||||
Less: Valuation allowance | |||||||
Net deferred tax assets | $ | $ | |||||
Deferred Tax Liabilities: | |||||||
Intangibles | $ | ( | ) | $ | ( | ) | |
Undistributed earnings | ( | ) | ( | ) | |||
Accelerated depreciation | ( | ) | ( | ) | |||
Investment | ( | ) | ( | ) | |||
Total deferred tax liabilities | $ | ( | ) | $ | ( | ) | |
Net deferred tax assets | $ | $ |
2016 | 2015 | ||||||
Non-current assets | |||||||
Other non-current liabilities | ( | ) | ( | ) | |||
Net deferred tax assets | $ | $ |
Federal | State | Foreign | Total | ||||||||||||
DTA valuation allowance - December 31, 2013 | $ | $ | $ | $ | |||||||||||
Change in assessment | |||||||||||||||
Current year operations | |||||||||||||||
DTA valuation allowance - December 31, 2014 | |||||||||||||||
Change in assessment | ( | ) | ( | ) | |||||||||||
Current year operations | ( | ) | ( | ) | ( | ) | |||||||||
DTA valuation allowance - December 31, 2015 | |||||||||||||||
Change in assessment | ( | ) | ( | ) | |||||||||||
Current year operations | ( | ) | ( | ) | |||||||||||
DTA valuation allowance - December 31, 2016 | $ | $ | $ | $ |
Attribute | Amount | First Year of Expiration | |||
U.S. federal net operating losses | $ | ||||
U.S. state net operating losses | $ | ||||
U.S. federal tax credits | $ | ||||
U.S. state tax credits | $ | ||||
Foreign net operating losses | $ |
2016 | 2015 | 2014 | |||||||||
Unrecognized tax benefits – January 1 | $ | $ | $ | ||||||||
Additions for: | |||||||||||
Current year tax positions | |||||||||||
Prior year tax positions | |||||||||||
Assumed in acquisition | |||||||||||
Reductions for: | |||||||||||
Prior year tax positions | ( | ) | ( | ) | ( | ) | |||||
Settlements | ( | ) | ( | ) | ( | ) | |||||
Expiration of statute of limitations | ( | ) | ( | ) | ( | ) | |||||
Unrecognized tax benefits – December 31 | $ | $ | $ |
Jurisdiction | Earliest Open Year |
China | |
Czech | |
Germany | |
Italy | |
Korea | |
Luxembourg | |
Mexico | |
United States |
2016 | 2015 | 2014 | ||||||
Basic weighted average common shares outstanding | ||||||||
Add: Dilutive impact of outstanding equity awards | ||||||||
Diluted weighted average common shares outstanding |
2016 | 2015 | 2014 | |||||||||
Anti-dilutive stock options | |||||||||||
Average exercise price | $ | $ | $ | ||||||||
Year(s) of expiration | 2024 - 2026 | 2024 - 2025 | 2024 |
2016 | 2015 | ||||||
Trade accounts receivable | $ | $ | |||||
Notes receivable | |||||||
Other | |||||||
Receivables, gross | |||||||
Less: allowance for doubtful accounts | |||||||
Receivables, net | $ | $ |
2016 | 2015 | 2014 | |||||||||
Allowance for doubtful accounts – January 1 | $ | $ | $ | ||||||||
Charges to income | |||||||||||
Write-offs | ( | ) | ( | ) | ( | ) | |||||
Foreign currency and other | ( | ) | ( | ) | |||||||
Allowance for doubtful accounts – December 31 | $ | $ | $ |
2016 | 2015 | ||||||
Finished goods | $ | $ | |||||
Work in process | |||||||
Raw materials | |||||||
Inventoried costs related to long-term contracts | |||||||
Total inventory before progress payments | |||||||
Less – progress payments | ( | ) | ( | ) | |||
Inventories, net | $ | $ |
2016 | 2015 | ||||||
Asbestos-related current assets | $ | $ | |||||
Prepaid income tax | |||||||
Short-term investments | |||||||
Other | |||||||
Other current assets | $ | $ | |||||
Other employee benefit-related assets | $ | $ | |||||
Capitalized software costs | |||||||
Environmental related assets | |||||||
Equity method investments | |||||||
Other | |||||||
Other non-current assets | $ | $ |
2016 | 2015 | ||||||
Machinery and equipment | $ | $ | |||||
Buildings and improvements | |||||||
Construction work in progress | |||||||
Furniture, fixtures and office equipment | |||||||
Land and improvements | |||||||
Other | |||||||
Plant, property and equipment, gross | |||||||
Less: accumulated depreciation | ( | ) | ( | ) | |||
Plant, property and equipment, net | $ | $ |
Industrial Process | Motion Technologies | Interconnect Solutions | Control Technologies | Total | |||||||||||||||
Goodwill - December 31, 2014 | $ | $ | $ | $ | $ | ||||||||||||||
Goodwill acquired | |||||||||||||||||||
Allocated to divestiture | — | — | — | ( | ) | ( | ) | ||||||||||||
Foreign currency | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Goodwill - December 31, 2015 | $ | $ | $ | $ | $ | ||||||||||||||
Adjustments to purchase price allocations | |||||||||||||||||||
Foreign currency | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Goodwill - December 31, 2016 | $ | $ | $ | $ | $ |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Intangibles | Gross Carrying Amount | Accumulated Amortization | Net Intangibles | ||||||||||||||||||
Customer relationships | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | |||||||||||||
Proprietary technology | ( | ) | ( | ) | |||||||||||||||||||
Patents and other | ( | ) | ( | ) | |||||||||||||||||||
Finite-lived intangible total | ( | ) | ( | ) | |||||||||||||||||||
Indefinite-lived intangibles | — | — | |||||||||||||||||||||
Other Intangible Assets | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ |
Wolverine | Hartzell Aerospace | ||||||||||||
Fair Value Acquired | Useful Life (in Years) | Fair Value Acquired | Useful Life (in Years) | ||||||||||
Customer relationships | $ | $ | |||||||||||
Proprietary technology | |||||||||||||
Backlog | — | — | |||||||||||
Brand and trademarks | — | — | |||||||||||
Indefinite-lived trade name | — | — | — | ||||||||||
Total | $ | $ |
Year | Estimated Amortization Expense | ||
2017 | $ | ||
2018 | |||
2019 | |||
2020 | |||
2021 | |||
Thereafter |
2016 | 2015 | ||||||
Compensation and other employee-related benefits | $ | $ | |||||
Asbestos-related liability | |||||||
Customer-related liabilities | |||||||
Accrued income taxes and other tax-related liabilities | |||||||
Environmental and other legal matters | |||||||
Accrued warranty costs | |||||||
Other accrued liabilities | |||||||
Accrued and other current liabilities | $ | $ | |||||
Environmental liabilities | $ | $ | |||||
Compensation and other employee-related benefits | |||||||
Deferred income taxes and other tax-related liabilities | |||||||
Other | |||||||
Other non-current liabilities | $ | $ |
2017 | $ | ||
2018 | |||
2019 | |||
2020 | |||
2021 | |||
2022 and thereafter | |||
Total minimum lease payments | $ |
2016 | 2015 | ||||||
Commercial Paper | $ | $ | |||||
Short-term loans | |||||||
Current maturities of long-term debt | |||||||
Current capital leases | |||||||
Short-term loans and current maturities of long-term debt | |||||||
Non-current maturities of long-term debt | |||||||
Non-current capital leases | |||||||
Long-term debt and capital leases | |||||||
Total debt and capital leases | $ | $ |
2016 | 2015 | ||||||||||||||||||||||
Pension | Other Benefits | Total | Pension | Other Benefits | Total | ||||||||||||||||||
Fair value of plan assets | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Projected benefit obligation | |||||||||||||||||||||||
Funded status | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Amounts reported within: | |||||||||||||||||||||||
Accrued liabilities | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Non-current liabilities | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) |
2016 | 2015 | ||||||||||||||||||||||
Pension | Other Benefits | Total | Pension | Other Benefits | Total | ||||||||||||||||||
Net actuarial loss | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Prior service cost (benefit) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
2016 | 2015 | ||||||||||||||||||||||||||||||
U.S. | Int’l | Other Benefits | Total | U.S. | Int’l | Other Benefits | Total | ||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||
Benefit obligation – January 1 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Service cost | |||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||
Amendments | |||||||||||||||||||||||||||||||
Actuarial loss (gain) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Benefits and expenses paid | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Acquired | |||||||||||||||||||||||||||||||
Settlement(a) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Curtailment | ( | ) | ( | ) | |||||||||||||||||||||||||||
Foreign currency translation | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Benefit obligation – December 31 | $ | $ | $ | $ | $ | $ | $ | $ |
2016 | 2015 | ||||||||||||||||||||||||||||||
U.S. | Int’l | Other Benefits | Total | U.S. | Int’l | Other Benefits | Total | ||||||||||||||||||||||||
Change in plan assets | |||||||||||||||||||||||||||||||
Plan assets – January 1 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Actual return on plan assets | ( | ) | ( | ) | |||||||||||||||||||||||||||
Employer contributions | |||||||||||||||||||||||||||||||
Benefits and expenses paid | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||
Acquired | |||||||||||||||||||||||||||||||
Settlement(a) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Foreign currency translation | ( | ) | ( | ) | |||||||||||||||||||||||||||
Plan assets – December 31 | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||
Funded status at end of year | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) |
2016 | 2015 | ||||||
Projected benefit obligation | $ | $ | |||||
Accumulated benefit obligation | |||||||
Fair value of plan assets |
2016 | 2015 | 2014 | |||||||||||||||||||||||||||||||||
U.S. | Int’l | Total | U.S. | Int’l | Total | U.S. | Int’l | Total | |||||||||||||||||||||||||||
Net periodic postretirement cost - pension | |||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||
Amortization of net actuarial loss | |||||||||||||||||||||||||||||||||||
Amortization of prior service cost | |||||||||||||||||||||||||||||||||||
Net periodic postretirement cost | |||||||||||||||||||||||||||||||||||
Effect of settlement, curtailment, or special termination benefit(a) | |||||||||||||||||||||||||||||||||||
Total net periodic postretirement cost | |||||||||||||||||||||||||||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | |||||||||||||||||||||||||||||||||||
Net actuarial loss (gain) | ( | ) | |||||||||||||||||||||||||||||||||
Prior service cost | |||||||||||||||||||||||||||||||||||
Amortization of net actuarial (loss) gain | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Amortization of prior service cost | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Foreign currency translation | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||
Total change recognized in other comprehensive loss | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||
Total impact from net periodic postretirement cost and changes in other comprehensive loss | $ | ( | ) | $ | $ | $ | $ | ( | ) | $ | $ | $ | $ |
2016 | 2015 | 2014 | |||||||||
Net periodic postretirement cost - other postretirement | |||||||||||
Service cost | $ | $ | $ | ||||||||
Interest cost | |||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | |||||
Amortization of net actuarial loss | |||||||||||
Amortization of prior service credit | ( | ) | ( | ) | ( | ) | |||||
Net periodic postretirement cost (benefit) | ( | ) | |||||||||
Gain due to curtailment(b) | ( | ) | |||||||||
Total net periodic postretirement cost (benefit) | ( | ) | |||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive loss | |||||||||||
Net actuarial (gain) loss | ( | ) | |||||||||
Prior service credit | ( | ) | |||||||||
Amortization of net actuarial loss | ( | ) | ( | ) | ( | ) | |||||
Amortization of prior service credit | |||||||||||
Acceleration of prior service costs | |||||||||||
Total changes recognized in other comprehensive loss | ( | ) | |||||||||
Total impact from net periodic postretirement cost and changes in other comprehensive loss | $ | $ | $ | ( | ) |
Pension | Other Benefits | Total | |||||||||
Net actuarial loss | $ | $ | $ | ||||||||
Prior service cost (credit) | ( | ) | ( | ) | |||||||
Total | $ | $ | ( | ) | $ |
2016 | 2015 | ||||||||||||||||
U.S. | Int’l | Other Benefits | U.S. | Int’l | Other Benefits | ||||||||||||
Obligation Assumptions: | |||||||||||||||||
Discount rate | % | % | % | % | % | % | |||||||||||
Rate of future compensation increase | N/A | % | N/A | N/A | % | N/A | |||||||||||
Cost Assumptions: | |||||||||||||||||
Discount rate | % | % | % | % | % | % | |||||||||||
Expected return on plan assets | % | % | % | % | % | % |
2016 | 2015 | 2014 | ||||||
Expected rate of return on plan assets | % | % | % | |||||
Actual rate of return on plan assets | % | ( | )% | % |
2016 | 2015 | Target Allocation Range | |||||
U.S. equities | % | % | 20-35 % | ||||
International equities | % | % | 10-35 % | ||||
Fixed income | % | % | 40-75 % | ||||
Cash and other | % | % | 0-5 % |
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. |
• | Level 2 inputs are other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices (in non-active markets or in active markets for similar assets or liabilities), inputs other than quoted prices that are observable, and inputs that are derived principally from or corroborated by observable market data by correlation or other means. |
• | Level 3 inputs are unobservable inputs for the assets or liabilities. |
Pension | Other Benefits | ||||||||||||||||||
2016 | Level 1 | Measured at NAV | Total | Level 1 | Total | ||||||||||||||
Collective Trusts: | |||||||||||||||||||
U.S. equity | $ | $ | $ | $ | $ | ||||||||||||||
International equity | |||||||||||||||||||
Fixed income | |||||||||||||||||||
Mutual funds | |||||||||||||||||||
Cash and other | |||||||||||||||||||
Total | $ | $ | $ | $ | $ |
Pension | Other Benefits | ||||||||||||||||||||||
2015 | Level 1 | Level 3 | Measured at NAV | Total | Level 1 | Total | |||||||||||||||||
Collective Trusts: | |||||||||||||||||||||||
U.S. equity | $ | $ | $ | $ | $ | $ | |||||||||||||||||
International equity | |||||||||||||||||||||||
Fixed income | |||||||||||||||||||||||
Hedge funds | |||||||||||||||||||||||
Mutual funds | |||||||||||||||||||||||
Cash and other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
U.S. Pension | Int’l Pension | Other Benefits | |||||||||
2017 | $ | $ | $ | ||||||||
2018 | |||||||||||
2019 | |||||||||||
2020 | |||||||||||
2021 | |||||||||||
2022 - 2026 |
2016 | 2015 | 2014 | |||||||||
Share-based compensation expense, equity-based awards | $ | $ | $ | ||||||||
Share-based compensation expense, liability-based awards | |||||||||||
Total share-based compensation expense in operating income | $ | $ | $ |
2016 | 2015 | 2014 | ||||||||||||||||||
Stock Options | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | Shares | Weighted Average Exercise Price | ||||||||||||||
Outstanding – January 1 | $ | $ | $ | |||||||||||||||||
Granted | ||||||||||||||||||||
Exercised | ( | ) | ( | ) | ( | ) | ||||||||||||||
Cancelled or expired | ( | ) | ( | ) | ( | ) | ||||||||||||||
Outstanding – December 31 | $ | $ | $ | |||||||||||||||||
Options exercisable – December 31 | $ | $ | $ |
Options Outstanding | Options Exercisable | |||||||||||||||||
Exercise Prices | Number | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | Number | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | ||||||||||||
$19.97 | $ | $ | ||||||||||||||||
$20.28 | ||||||||||||||||||
$21.53 | ||||||||||||||||||
$22.80 | ||||||||||||||||||
$26.76 | ||||||||||||||||||
$33.01 | — | — | ||||||||||||||||
$41.52 | — | — | ||||||||||||||||
$43.52 | — | — | ||||||||||||||||
$ | $ |
2016 | 2015 | 2014 | |||||||||
Dividend yield | % | % | % | ||||||||
Expected volatility | % | % | % | ||||||||
Expected life (in years) | |||||||||||
Risk-free rates | % | % | % | ||||||||
Weighted-average grant date fair value | $ | $ | $ |
2016 | 2015 | 2014 | ||||||||||||||||||
Restricted Stock and Performance Units | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||
Outstanding – January 1 | $ | $ | $ | |||||||||||||||||
Granted | ||||||||||||||||||||
Performance adjustment(a) | ( | ) | ||||||||||||||||||
Lapsed | ( | ) | ( | ) | ( | ) | ||||||||||||||
Canceled | ( | ) | ( | ) | ( | ) | ||||||||||||||
Outstanding – December 31 | $ | $ | $ | |||||||||||||||||
Vested pending issuance | $ | $ | $ |
2016 | 2015 | 2014 | ||||||
Equity settled RSUs | ||||||||
Cash settled RSUs | ||||||||
PSU awards |
(in thousands) | 2016 | 2015 | 2014 | |||||
Pending claims – Beginning | ||||||||
New claims | ||||||||
Settlements | ( | ) | ( | ) | ( | ) | ||
Dismissals | ( | ) | ( | ) | ( | ) | ||
Pending claims – Ending | ||||||||
Pending inactive claims(a) | ||||||||
Pending active claims |
• | interpretation of a widely accepted forecast of the population likely to have been exposed to asbestos in the workplace; |
• | widely accepted epidemiological studies estimating the number of people likely to develop mesothelioma and lung cancer from exposure to asbestos; |
• | the Company’s historical experience with the filing of non-malignant claims against it and the historical relationship between non-malignant and malignant claims filed against the Company; |
• | analysis of the number of likely asbestos personal injury claims to be filed against the Company based on such epidemiological and historical data and the Company’s recent claims experience; |
• | analysis of the Company’s pending cases, by disease type; |
• | analysis of the Company’s recent experience to determine the average settlement value of claims, by disease type; |
• | analysis of the Company's recent experience in the ratio of settled claims to total resolved claims, by disease type; |
• | analysis of the Company’s defense costs in relation to its indemnity costs and agreements in place with external counsel; |
• | adjustment for inflation in the average settlement value of claims and defense costs estimated to be paid in the future; and |
• | analysis of the Company’s recent experience with regard to the length of time to resolve asbestos claims. |
2016 | 2015 | 2014 | |||||||||
Asbestos provision | $ | $ | $ | ||||||||
Asbestos remeasurement, net | ( | ) | ( | ) | ( | ) | |||||
Defense cost adjustment | ( | ) | ( | ) | |||||||
Settlement agreements | ( | ) | ( | ) | |||||||
Net asbestos (benefit) charge, net | $ | ( | ) | $ | ( | ) | $ |
2016 | 2015 | ||||||||||||||||||||||
Liability | Asset | Net | Liability | Asset | Net | ||||||||||||||||||
Balance as of January 1 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Asbestos provision | |||||||||||||||||||||||
Asbestos remeasurement | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Settlement agreements | ( | ) | — | ( | ) | ||||||||||||||||||
Defense cost adjustment | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||
Net cash activity and other | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||
Balance as of December 31 | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Current portion | |||||||||||||||||||||||
Noncurrent portion |
2016 | 2015 | ||||||
Balance as of January 1 | $ | $ | |||||
Changes in estimates for pre-existing accruals(a): | |||||||
Pre-existing accrual additions | |||||||
Pre-existing accrual reversals | ( | ) | ( | ) | |||
Net cash activity | ( | ) | ( | ) | |||
Foreign currency | ( | ) | |||||
Balance as of December 31 | $ | $ |
2016 | 2015 | ||||||
High end range | $ | $ | |||||
Number of active environmental investigation and remediation sites |
2016 | 2015 | ||||||
Warranty accrual – January 1 | $ | $ | |||||
Warranty expense | |||||||
Payments | ( | ) | ( | ) | |||
Foreign currency and other | ( | ) | |||||
Warranty accrual – December 31 | $ | $ |
Wolverine | Hartzell Aerospace | |||||
Cash | $ | $ | ||||
Receivables | ||||||
Inventory | ||||||
Plant, property and equipment | ||||||
Goodwill | ||||||
Other intangible assets | ||||||
Other assets | ||||||
Accounts payable and accrued liabilities | ( | ) | ( | ) | ||
Postretirement liabilities | ( | ) | ||||
Other liabilities | ( | ) | ||||
Net assets acquired | $ | $ |
2016 Quarters | 2015 Quarters | ||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
Revenue | $ | 588.4 | $ | 581.7 | $ | 626.2 | $ | 609.1 | $ | 666.8 | $ | 601.9 | $ | 628.2 | $ | 588.7 | |||||||||||||||
Gross profit | 173.4 | 183.9 | 205.6 | 195.3 | 201.3 | 194.9 | 213.9 | 199.0 | |||||||||||||||||||||||
Income from continuing operations attributable to ITT Inc. | 23.6 | 88.3 | 32.3 | 37.7 | 36.6 | 96.5 | 140.6 | 38.7 | |||||||||||||||||||||||
Income (loss) from discontinued operations | 2.2 | 1.8 | 0.5 | (0.3 | ) | 0.1 | 34.2 | 1.7 | 3.4 | ||||||||||||||||||||||
Net income attributable to ITT Inc. | 25.8 | 90.1 | 32.8 | 37.4 | 36.7 | 130.7 | 142.3 | 42.1 | |||||||||||||||||||||||
Basic earnings per share attributable to ITT Inc.: | |||||||||||||||||||||||||||||||
Continuing operations | $ | 0.27 | $ | 0.99 | $ | 0.36 | $ | 0.42 | $ | 0.40 | $ | 1.08 | $ | 1.57 | $ | 0.42 | |||||||||||||||
Discontinued operations | 0.02 | 0.02 | — | — | 0.01 | 0.38 | 0.02 | 0.04 | |||||||||||||||||||||||
Net income | $ | 0.29 | $ | 1.01 | $ | 0.36 | $ | 0.42 | $ | 0.41 | $ | 1.46 | $ | 1.59 | $ | 0.46 | |||||||||||||||
Diluted earnings per share attributable to ITT Inc.: | |||||||||||||||||||||||||||||||
Continuing operations | $ | 0.27 | $ | 0.98 | $ | 0.36 | $ | 0.42 | $ | 0.40 | $ | 1.07 | $ | 1.56 | $ | 0.42 | |||||||||||||||
Discontinued operations | 0.02 | 0.02 | — | (0.01 | ) | 0.01 | 0.38 | 0.02 | 0.04 | ||||||||||||||||||||||
Net income | $ | 0.29 | $ | 1.00 | $ | 0.36 | $ | 0.41 | $ | 0.41 | $ | 1.45 | $ | 1.58 | $ | 0.46 | |||||||||||||||
Common stock price per share: | |||||||||||||||||||||||||||||||
High | $ | 43.07 | $ | 36.98 | $ | 39.70 | $ | 38.96 | $ | 40.52 | $ | 42.43 | $ | 43.96 | $ | 42.97 | |||||||||||||||
Low | $ | 32.46 | $ | 30.06 | $ | 30.31 | $ | 29.15 | $ | 32.70 | $ | 32.86 | $ | 39.01 | $ | 35.30 | |||||||||||||||
Close | $ | 38.57 | $ | 35.84 | $ | 31.98 | $ | 36.89 | $ | 36.32 | $ | 33.43 | $ | 41.84 | $ | 39.91 | |||||||||||||||
Dividends per share | $ | 0.124 | $ | 0.124 | $ | 0.124 | $ | 0.124 | $ | 0.1183 | $ | 0.1183 | $ | 0.1183 | $ | 0.1183 |
ITT Inc. (Registrant) | |
By: | /S/ STEVEN C. GIULIANO |
Steven C. Giuliano Vice President and Chief Accounting Officer (Principal accounting officer) | |
February 17, 2017 |
SIGNATURE | TITLE | DATE |
/S/ DENISE L. RAMOS | Chief Executive Officer, President and Director | February 17, 2017 |
Denise L. Ramos (Principal executive officer) | ||
/S/ THOMAS M. SCALERA | Executive Vice President and Chief Financial Officer | February 17, 2017 |
Thomas M. Scalera (Principal financial officer) | ||
/S/ STEVEN C. GIULIANO | Vice President and Chief Accounting Officer | February 17, 2017 |
Steven C. Giuliano (Principal accounting officer) | ||
/S/ ORLANDO D. ASHFORD | Director | February 17, 2017 |
Orlando D. Ashford | ||
/S/ G. PETER D’ALOIA | Director | February 17, 2017 |
G. Peter D’Aloia | ||
/S/ GERAUD DARNIS | Director | February 17, 2017 |
Geraud Darnis | ||
/S/ DONALD DEFOSSET, JR. | Director | February 17, 2017 |
Donald DeFosset, Jr. | ||
/S/ NICHOLAS FANANDAKIS | Director | February 17, 2017 |
Nicholas Fanandakis | ||
/S/ CHRISTINA A. GOLD | Director | February 17, 2017 |
Christina A. Gold | ||
/S/ RICHARD P. LAVIN | Director | February 17, 2017 |
Richard P. Lavin | ||
/S/ FRANK T. MACINNIS | Director | February 17, 2017 |
Frank T. MacInnis | ||
/S/ REBECCA A. MCDONALD | Director | February 17, 2017 |
Rebecca A. McDonald | ||
/S/ TIMOTHY H. POWERS | Director | February 17, 2017 |
Timothy H. Powers |
Exhibit Number | Description | Location |
2.1 | Agreement and Plan of Merger, effective May 16, 2016 among ITT Corporation, ITT Inc. and ITT LLC | Incorporated by reference to Exhibit 2.1 of ITT Inc.’s Form 8-K dated May 16, 2016 (File No. 001-05672). |
3.1 | ITT Inc.’s Amended and Restated Articles of Incorporation, effective as of May 16, 2016 | Incorporated by reference to Exhibit 3.1 of ITT Inc.’s Form 8-K dated May 16, 2016 (File No. 001-05672). |
3.2 | Amended and Restated By-laws of ITT Inc., effective as of May 16, 2016 | Incorporated by reference to Exhibit 3.2 of ITT Inc.’s Form 8-K dated May 16, 2016 (File No. 001-05672). |
10.1 | Distribution Agreement, dated as of October 25, 2011, among ITT Corporation, Xylem Inc. and Exelis Inc. | Incorporated by reference to Exhibit 10.1 of ITT Inc.’s Form 10-Q for the quarter ended September 30, 2011 (File No. 001-05672). |
10.2 | Benefits and Compensation Matters Agreement, dated as of October 25, 2011, among ITT Corporation, Xylem Inc. and Exelis Inc. | Incorporated by reference to Exhibit 10.2 of ITT Inc.’s Form 10-Q for the quarter ended September 30, 2011 (File No. 001-05672). |
10.3 | First Amendment to Benefits and Compensation Matters Agreement | Incorporated by reference as Exhibit 10.1 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2013 |
10.4 | Tax Matters Agreement, dated as of October 25, 2011, among ITT Corporation, Xylem Inc. and Exelis Inc. | Incorporated by reference to Exhibit 10.3 of ITT Inc.’s Form 10-Q for the quarter ended September 30, 2011 (File No. 001-05672). |
10.5 | Master Transition Services Agreement, dated as of October 25, 2011, among ITT Corporation, Xylem Inc. and Exelis Inc. | Incorporated by reference to Exhibit 10.4 of ITT Inc.’s Form 10-Q for the quarter ended September 30, 2011 (File No. 001-05672). |
10.6 | ITT Transitional Trademark License Agreement - Exelis, dated as of October 25, 2011, between ITT Manufacturing Enterprises LLC and Exelis Inc. | Incorporated by reference to Exhibit 10.5 of ITT Inc.’s Form 10-Q for the quarter ended September 30, 2011 (File No. 001-05672). |
10.7 | Master Lease Agreement and Master Sublease Agreement, dated as of October 25, 2011 and September 30, 2011, respectively | Incorporated by reference to Exhibit 10.6 of ITT Inc.’s Form 10-Q for the quarter ended September 30, 2011 (File No. 001-05672). |
10.8 | Five Year Competitive Advance and Revolving Credit Facility Agreement, dated as of November 25, 2014 among ITT Corporation and the Other Parties Signatory Thereto | Incorporated by reference to Exhibit 10.1 of ITT Inc.’s Form 8-K dated November 25, 2014 (File No. 001-05672). |
10.9 | Instrument of Assumption and Amendment Agreement, dated as of May 16, 2016, to the Five-Year Competitive Advance and Revolving Credit Facility Agreement, dated as of among ITT Inc., ITT LLC and the Administrative Agent | Incorporated by reference to Exhibit 10.1 of ITT Inc.’s Form 8-K dated May 16, 2016 (File No. 001-05672). |
10.1 | First Amendment to Five-Year Competitive Advance and Revolving Credit Facility Agreement, dated as of November 29, 2016, among ITT Inc. and the lenders party thereto | Incorporated by reference to Exhibit 10.1 of ITT Inc.’s Form 8-K dated November 30, 2016 (File No. 001-05672). |
10.11 | Indenture between ITT Corporation and Union Bank N.A., as Trustee dated May 1, 2009 | Incorporated by reference to Exhibit 4.3 of ITT Inc.’s Form S-3 dated September 18, 2015 (File No. 001-05672). |
10.12 | First Supplemental Indenture, dated as of May 16, 2016, between ITT Corporation, ITT Inc. and MUFG Union Bank, N.A. as Trustee | Incorporated by reference to Exhibit 4.2 of ITT Inc.’s Post-Effective Amendment No.1 to Registration Statement on Form S-3 dated May 16, 2016 (File No. 333-207006). |
10.13* | ITT Annual Incentive Plan for Executive Officers, amended and restated as of May 16, 2016 | Incorporated by reference to Exhibit 10.5 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2016 (File No. 001-05672). |
10.14* | ITT Retirement Savings Plan for Salaried Employees (effective January 1, 2016) | Incorporated by reference to Exhibit 10.10 of ITT Inc.’s Form 10-K for the year ended December 31, 2015 (File No. 001-05672). |
10.15* | Supplemental Retirement Savings Plan, amended and restated as of January 1, 2016 | Incorporated by reference to Exhibit 10.6 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2016 (File No. 001-05672). |
10.16* | ITT Senior Executive Severance Pay Plan, amended and restated as of May 16, 2016 | Incorporated by reference to Exhibit 10.9 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2016 (File No. 001-05672). |
10.17* | ITT Senior Executive Change in Control Severance Pay Plan, amended and restated as of May 16, 2016 | Incorporated by reference to Exhibit 10.11 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2016 (File No. 001-05672). |
Exhibit Number | Description | Location |
10.18* | ITT Change in Control Severance Plan, amended and restated as of May 16, 2016 | Incorporated by reference to Exhibit 10.10 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2016 (File No. 001-05672). |
10.19* | ITT Deferred Compensation Plan, as amended and restated as of May 16, 2016 | Incorporated by reference to Exhibit 10.4 of ITT Inc.’s Form 8-K dated May 16, 2016 (File No. 001-05672). |
10.20* | ITT Deferred Compensation Plan for Non-Employee Directors, amended and restated as of May 16, 2016 | Incorporated by reference to Exhibit 10.8 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2016 (File No. 001-05672). |
10.21* | Non-Employee Director Compensation Summary | Incorporated by reference to Exhibit 10.1 of ITT Inc.’s Form 10-Q for the quarter ended September 30, 2016 (File No. 001-05672). |
10.22* | 2011 Omnibus Incentive Plan | Incorporated by reference to Exhibit 4.3 of ITT Inc.’s Registration Statement on Form S-8 as filed on October 28, 2011 (File No. 001-05672). |
10.23* | ITT 2003 Equity Incentive Plan, amended and restated as of February 15, 2008 and approved by shareholders on May 13, 2008 (previously amended and restated as of July 13, 2004 and subsequently amended as of December 18, 2006) and previously known as ITT Industries, Inc. 2003 Equity Incentive Plan | Incorporated by reference to Exhibit 10.5 of ITT Inc.’s Form 10-Q for the quarter ended June 30, 2008 (File No. 001-05672). |
10.24* | Omnibus Amendment to Long-Term Incentive Plans, dated as of May 16, 2016 | Incorporated by reference to Exhibit 10.2 of ITT Inc.’s Current Report on Form 8-K dated May 16, 2016 (File No. 001-05672). |
10.25* | Form of 2016 Performance Unit Award Agreement | Incorporated by reference to Exhibit 10.1 of ITT Inc.’s Form 10-Q for the quarter ended March 31, 2016 (File No. 001-05672). |
10.26* | Form of 2016 Non-Qualified Stock Option Award Agreement | Incorporated by reference to Exhibit 10.2 of ITT Inc.’s Form 10-Q for the quarter ended March 31, 2016 (File No. 001-05672). |
10.27* | Form of 2016 Restricted Stock Unit Agreement | Incorporated by reference to Exhibit 10.3 of ITT Inc.’s Form 10-Q for the quarter ended March 31, 2016 (File No. 001-05672). |
10.28* | Form of 2015 Performance Unit Award Agreement | Incorporated by reference to Exhibit 10.1 of ITT Inc.’s Form 10-Q for the quarter ended March 31, 2015 (File No. 001-05672). |
10.29* | Form of 2015 Non-Qualified Stock Option Award Agreement | Incorporated by reference to Exhibit 10.2 of ITT Inc.’s Form 10-Q for the quarter ended March 31, 2015 (File No. 001-05672). |
10.30* | Form of 2015 Restricted Stock Unit Agreement | Incorporated by reference to Exhibit 10.3 of ITT Inc.’s Form 10-Q for the quarter ended March 31, 2015 (File No. 001-05672). |
10.31* | Amended and Restated Employment Agreement, dated as of May 16, 2016, between ITT Inc. and Denise L. Ramos. | Incorporated by reference to Exhibit 10.3 of ITT Inc.’s Form 8-K dated May 16, 2016 (File No. 001-05672). |
10.32 | Form of ITT Inc. Indemnification Agreement with its directors and officers | Incorporated by reference to Exhibit 10.5 to ITT Inc.’s Form 8-K dated May 16, 2016 (File No. 001-05672). |
21 | Subsidiaries of the Registrant | Filed herewith. |
23.1 | Consent of Deloitte & Touche LLP | Filed herewith. |
31.1 | Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. |
31.2 | Certification pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith. |
32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. |
Exhibit Number | Description | Location |
32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | This Exhibit is intended to be furnished in accordance with Regulation S-K Item 601(b) (32) (ii) and shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall be expressly set forth by specific reference. |
101 | The following materials from ITT Inc.’s Annual Report on Form 10-K for the year ended December 31, 2016, formatted in XBRL (Extensible Business Reporting Language): (i) Consolidated Statements of Operations, (ii) Consolidated Statements of Comprehensive Income (Loss), (iii) Consolidated Balance Sheets, (iv) Consolidated Statements of Cash Flows, (v) Consolidated Statements of Changes in Shareholders’ Equity and (vi) Notes to Consolidated Financial Statements | Submitted electronically with this report. |
* | Management compensatory plan |
** | The registrant has requested confidential treatment with respect to portions of this exhibit. Those portions have been omitted from the exhibit and filed separately with the U.S. Securities and Exchange Commission. |
Name | Jurisdiction In Which Organized | Name Under Which Performing Business |
AcousticFab, LLC | Delaware | |
AIMCO Industries LLC | New York | |
Bolton Insurance Co. | New York | |
C&I QSF LLC | Delaware | |
Carbon Industries, Inc. | West Virginia | |
Computer & Equipment Leasing Corporation | Wisconsin | |
Electrofilm Manufacturing Company LLC | California | |
EnviroTech LLC | Delaware | |
Goulds Mexico Holdings LLC | Delaware | |
Goulds Pumps (IPG) LLC (fka Goulds Pumps (IPG), Inc.) | Delaware | Goulds Pumps |
Goulds Pumps (N.Y.), Inc. | New York | Goulds Pumps |
Goulds Pumps (PA) LLC (fka Goulds Pumps (PA), Inc.) | Delaware | Goulds Pumps |
Goulds Pumps Administration, Inc. | New York | |
Goulds Pumps LLC (fka Goulds Pumps Incorporated, Inc.) | Delaware | Goulds Pumps |
Goulds QSF LLC | Delaware | |
Industrial Tube Company LLC | California | |
Industries QSF LLC | Delaware | |
InTelCo Management LLC | Delaware | |
InTelCo Properties LLC | Delaware | |
International Motion Control Inc. | Delaware | |
International Standard Electric Corporation | Delaware | |
International Telephone & Telegraph Corp. | Delaware | |
ITT Aerospace Controls LLC | Delaware | |
ITT Automotive Enterprises, Inc. | Delaware | |
ITT Cannon LLC | Delaware | Cannon |
ITT Cannon Mexico, Inc. | Delaware | Cannon |
ITT Community Development Corporation | Delaware | |
ITT C'treat LLC | Delaware | C'Treat Offshore |
ITT Engineered Valves, LLC | Delaware | |
ITT Enidine Inc. | Delaware | Enidine |
ITT Fluid Technology International, Inc. | Delaware | Goulds Pumps |
ITT Goulds Pumps, Inc. (fka GP Holding Company, Inc.) | Delaware | Goulds Pumps |
ITT Holding LLC | Delaware | |
ITT Industries Holdings, Inc. | Delaware | |
ITT Industries Luxembourg S.a.r.l. (US BRANCH) | New York | |
ITT International Holdings, Inc. | Delaware | |
ITT LLC | Indiana | |
ITT Manufacturing Enterprises LLC | Delaware | |
ITT Motion Technologies America, LLC (fka ITT Koni America LLC) | Delaware | Koni |
Name | Jurisdiction In Which Organized | Name Under Which Performing Business |
ITT Motion Technologies LLC | Delaware | |
ITT Torque Systems, Inc. (fka Cleveland Motion Controls, Inc.) | Ohio | |
ITT Water & Wastewater U.S.A., Inc. | Delaware | |
ITT Water Technology (TX) LLC | Delaware | |
Kentucky Carbon Corporation | West Virginia | |
Koni NA LLC | Delaware | Koni |
Leland Properties, Inc. | Delaware | |
Rule Industries LLC | Massachusetts | |
TDS Corporate Services LLC | Delaware | |
Venus Holdco LLC | Delaware | |
WC Wolverine Holdings, Inc. | Delaware | |
Wolverine Advanced Materials, LLC | Delaware | |
Wolverine Automotive Holdings, Inc. | Delaware | |
Standard Electric | Algeria | |
Bombas Bornemann S.R.L. | Argentina | |
Bombas Goulds S.A. | Argentina | Goulds Pumps |
ITT Australia Holdings Pty Ltd | Australia | |
ITT Blakers PTY Ltd (fka Paley Pty Ltd.) | Australia | Blakers |
ITT Blakers Unit Trust | Australia | Blakers |
ITT Cannon GmbH (BELGIUM BRANCH) | Belgium | |
ITT Bombas Goulds do Brasil Ltda. | Brazil | Goulds Pumps |
Wolverine Brasil Representacao Ltda. | Brazil | |
Wolverine/Tekno Laminates and Composites Ltda. | Brazil | |
Bornemann Inc. (Canada) | Canada | |
Goulds Pumps Canada Inc. | Canada | Goulds Pumps |
ITT Fluid Technology S.A. | Chile | Goulds Pumps |
Bornemann Pumps & Systems Co. Ltd | China | |
ITT (China) Investment Co. Ltd. | China | |
ITT (China) Investment Co. Ltd. (SHANGHAI BRANCH) | China | |
ITT (Shanghai) Fluid Technology Co., Ltd. | China | |
ITT Cannon (Hong Kong) LTD | China | Cannon |
ITT Cannon Electronics (Shenzhen) Co. Ltd | China | Cannon |
ITT Cannon Electronics (Shenzhen) Co., Ltd.(ZHANGJIAGANG BRANCH) | China | |
ITT High Precision Manufactured Products (Wuxi) Co., Ltd. | China | |
ITT Procast (Zhangjiagang) Co., Ltd. | China | |
Shanghai Goulds Pumps Co. Ltd. | China | |
WAM China Ltd. | China | |
Wolverine Advanced Materials (Shanghai) Co., Ltd. | China | |
Wolverine Advanced Materials Asia Limited | China | |
Wolverine Press (Changshu) Co. Ltd. | China | |
ITT Goulds Pumps Colombia S.A.S. | Colombia | Goulds Pumps |
ITT Holdings Czech Republic s.r.o. | Czech Republic | |
ITT Cannon GmbH (DENMARK BRANCH) | Denmark | |
ITT Egypt LLC | Egypt |
Name | Jurisdiction In Which Organized | Name Under Which Performing Business |
ITT Industries France S.A.S. | France | |
Koni France SARL | France | Koni |
DITTHA GmbH | Germany | |
ITT Bornemann GmbH | Germany | Bornemann |
ITT Cannon GmbH | Germany | Cannon |
ITT Control Technologies EMEA GmbH | Germany | Cannon |
ITT Germany Holdings GmbH | Germany | |
ITT Motion Technologies GmbH | Germany | |
Wolverine Advanced Materials GmbH | Germany | |
Goulds Pumps, LLC (GREECE BRANCH) | Greece | |
ITT Corporation India PVT. Ltd. | India | |
Wolverine Advanced Materials LLC (INDIA BRANCH) | India | |
PT ITT Fluid Technology Indonesia | Indonesia | |
ITT Iran S.K. | Iran | |
ITT Technical Services S.K. | Iran | |
ITT Cannon Veam Italia s.r.l. | Italy | Cannon |
ITT Italia s.r.l. | Italy | |
ITT Italy Holding Srl | Italy | |
Enidine Kabashiki Gaisha (Enidine Company Limited (Japan)) | Japan | Enidine |
Goulds Pumps, LLC (JAPAN BRANCH) | Japan | |
ITT Cannon, Ltd. | Japan | |
Wolverine Japan KK | Japan | |
Goulds Pumps Co. Ltd. | Korea, Republic Of | Goulds Pumps |
ITT Cannon Korea Ltd. | Korea, Republic Of | Cannon |
Bolton International RE S.C.A. | Luxembourg | |
Bolton International S.C.A. | Luxembourg | |
ITT Industries Global S.a.r.l. | Luxembourg | |
ITT Industries Luxembourg S.a r.l. | Luxembourg | |
ITT International Luxembourg S.a r.l. | Luxembourg | |
ITT Investments Luxembourg S.a.r.l. | Luxembourg | |
ITT Motion Technologies Luxembourg S.a.r.l. | Luxembourg | |
Bombas Goulds de Mexico S. de R.L. de C.V. | Mexico | Goulds Pumps |
Bornemann S.A. DE C.V. | Mexico | |
ITT Cannon de Mexico, S.A. de C.V. | Mexico | Cannon |
ITT Motion Technologies Mexico, S. de R.L. de C.V | Mexico | |
EP Industries Europe B.V. | Netherlands | |
European Pump Services B.V. | Netherlands | |
ITT Japan B.V. | Netherlands | |
ITT Korea Holding B.V. | Netherlands | |
ITT Netherlands B.V. | Netherlands | |
Koni BV | Netherlands | Koni |
Goulds Pumps (NY), Inc. (PERU BRANCH) | Peru | |
ITT Industries Rus LLC | Russia | |
ITT Fluid Technology International, Inc. (RUSSIAN BRANCH) | Russia |
Name | Jurisdiction In Which Organized | Name Under Which Performing Business |
ITT Saudi Co. | Saudi Arabia | |
ITT Fluid Technology Asia Pte Ltd. | Singapore | |
ITT Fluid Technology International, Inc. (SOUTH AFRICA BRANCH) | South Africa | |
ITT Industries Spain SL | Spain | |
Goulds Pumps (NY), Inc., (TAIWAN BRANCH) | Taiwan | |
ITT Cannon (Hong Kong) LTD (TAIWAN BRANCH) | Taiwan | |
ITT Fluid Technology International (Thailand) LTD. | Thailand | Goulds Pumps |
Standard Tecknik Services | Turkey | |
ITT Cannon LLC (DUBAI BRANCH) | United Arab Emirates | |
ITT Fluid Technology International, Inc. (DUBAI BRANCH) | United Arab Emirates | |
ITT Industries Holdings Limited | United Kingdom | |
ITT Industries Limited | United Kingdom | |
ITT Pure-Flo (UK) Ltd. | United Kingdom | |
Bombas Goulds de Venezuela C.A. | Venezuela | Goulds Pumps |
Distribuidora Arbos, C.A. | Venezuela | Goulds Pumps |
Equipos Hidraulicos S.A. | Venezuela |
/s/ Deloitte & Touche LLP | |
Stamford, Connecticut |
/S/ DENISE L. RAMOS |
Denise L. Ramos |
Chief Executive Officer and President |
/S/ THOMAS M. SCALERA |
Thomas M. Scalera |
Executive Vice President and |
Chief Financial Officer |
/S/ DENISE L. RAMOS |
Denise L. Ramos |
Chief Executive Officer and President |
/S/ THOMAS M. SCALERA |
Thomas M. Scalera |
Executive Vice President and |
Chief Financial Officer |
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Document and Entity Information - USD ($) shares in Millions, $ in Billions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 15, 2017 |
Jun. 30, 2016 |
|
Document Documentand Entity Information [Abstract] | |||
Entity Registrant Name | ITT INC. | ||
Trading Symbol | ITT | ||
Entity Central Index Key | 0000216228 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 88.4 | ||
Entity Public Float | $ 2.9 |
CONSOLIDATED STATEMENTS OF OPERATIONS CONSOLIDATED STATEMENTS OF OPERATIONS (PARENTHETICAL) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax (Expense) Benefit from Discontinued Operations [Abstract] | |||
Tax Benefit (expense) on Discontinued Operations | $ (0.3) | $ 24.5 | $ 4.8 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Partners' Capital [Abstract] | |||
Tax benefit (expense) on net change in postretirement benefit plans | $ (6.9) | $ 9.8 | $ 2.6 |
Tax benefit on net change in unrealized loss on investment securities | 0.1 | ||
Tax expense (benefit) on amortization of prior service costs | (2.1) | (3.8) | (2.2) |
Tax (benefit) on amortization of net actuarial loss | (4.4) | (4.5) | (3.1) |
Tax expense (benefit) on recognition of curtailment gain | 0.0 | 1.6 | 0.0 |
Tax expense (benefit) on recognition of plan settlement costs | (4.7) | 0.0 | 0.0 |
Tax (expense) on prior service credit from plan amendment | 0.7 | (19.7) | |
Tax (expense) benefit on net actuarial loss arising during the period | 0.1 | $ 8.2 | $ 23.2 |
Tax benefit on realized losses on investment securities | $ (0.1) |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, shares authorized | 250.0 | 250.0 |
Common stock, par value | $ 1 | $ 1.00 |
Common stock, shares issued | 88.4 | 104.5 |
Common stock, shares outstanding | 88.4 | 89.5 |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. Unless the context otherwise indicates, references herein to "ITT," "the Company," and such words as "we," "us," and "our" include ITT Inc. and its subsidiaries. ITT operates through four segments: Industrial Process, consisting of industrial pumping and complementary equipment; Motion Technologies, consisting of friction and shock & vibration equipment; Interconnect Solutions, consisting of electronic connectors; and Control Technologies, consisting of fluid handling, motion control, and noise and energy absorption products. Financial information for our segments is presented in Note 3, Segment Information. On May 16, 2016, we consummated a corporate reorganization into a holding company structure. As a result of the reorganization ITT Inc., an Indiana corporation that was previously a wholly owned subsidiary of ITT Corporation, became the publicly traded holding company of ITT Corporation and its subsidiaries and the successor issuer to ITT Corporation under Rule 12g-3(a) under the Securities Exchange Act of 1934 (Exchange Act). As the successor issuer, ITT Inc. common stock was deemed to be registered under Section 12(b) of the Exchange Act and ITT Inc. succeeded to ITT Corporation’s obligation to file reports, proxy statements and other information required by the Exchange Act with the SEC. For additional information regarding the holding company reorganization, please refer to the Current Report on Form 8-K that we filed with the SEC on May 16, 2016. On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related businesses, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this report as the “2011 spin-off.” On May 29, 2015, Harris Corporation acquired Exelis. Basis of Presentation The Consolidated Financial Statements and Notes thereto were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates. Significant Accounting Policies Principles of Consolidation Our consolidated financial statements include the accounts of all majority-owned subsidiaries. ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Statements of Operations. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal or distribution. All intercompany transactions have been eliminated. Revenue Recognition Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions. Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period. For multiple deliverable arrangements, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied. We generally recognize revenue for certain long-term design and build projects using the percentage-of-completion method, based upon the percentage of costs incurred to total projected costs. Revenue and profit recognized under the percentage-of-completion method are based on management’s estimates. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of receivables, net. During the performance of long-term sales contracts, estimated final contract prices and costs are reviewed quarterly and revisions are made as required and recorded in income in the period in which they are determined. We apply the completed-contract method of accounting for smaller design and build contracts, including those of short-term duration. Amounts invoiced to customers in excess of revenue recognized are recorded as a reduction of inventory to the extent project costs have accumulated within inventory or as deferred revenue, within accrued liabilities, until the revenue recognition criteria are satisfied. Our results of operations and financial position would not vary materially had we used the percentage-of-completion method for these types of contracts. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses are recorded as a component of costs of revenue. We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. Revenue is reported net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority. Shipping and Handling Costs Shipping and handling costs are recorded as a component of costs of revenue. Product Warranties Our standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim. Asbestos-Related Liabilities and Assets Subsidiaries of ITT, including ITT LLC and Goulds Pumps LLC, have been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis, due to the inability to reliably forecast the timing of future cash flows. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. The Company has also recorded an asbestos-related asset composed of insurance receivables. The asbestos-related asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers, as well as a review of expected levels of future cost recovery, the financial viability of the insurance companies, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, and interpretation of the various policy and contract terms and limits and their interrelationships. Consistent with the asbestos liability, the asbestos-related asset has not been discounted to present value due to the inability to reliably forecast the timing of future cash flows. Under coverage-in-place agreements, an insurer’s policies remain in force and the insurer undertakes to provide coverage for the Company’s pending and future asbestos claims on specified terms and conditions. Insurance payments under coverage-in-place agreements are made to the Company as asbestos claims are settled or adjudicated. The Company’s buyout agreements provide an agreed upon amount of available coverage for future asbestos claims under the subject policies to be paid to a Qualified Settlement Fund (QSF) on a specific schedule as agreed upon by the Company and its insurer. However, assets in the QSF are only available and distributed when qualifying asbestos expenditures are submitted for reimbursement as defined in the QSF agreement. Therefore, recovery of insurance reimbursements under these types of agreements is dependent on the timing of the payment of the liability and, consistent with the asbestos liability, have not been discounted to present value. In the third quarter each year we conduct an asbestos remeasurement with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions used to estimate our asbestos liability and related assets, including a reassessment of the time horizon over which a reasonable estimate of unasserted claims can be projected. In addition, as part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. Provided the quarterly review does not indicate a more detailed evaluation of our asbestos exposure is required, each quarter we record a net asbestos expense to maintain a rolling 10-year time horizon. Postretirement Benefit Plans ITT sponsors several pension and other employee-related defined benefit plans (collectively, postretirement benefit plans). The majority of these plans are closed to new participants. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, and age at retirement or termination. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental. The assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, and other factors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Actual results that differ from our assumptions are accumulated and are amortized over the estimated future working life, or remaining lifetime, of the plan participants depending on the nature of the retirement plan. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last 5 years. The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. The funded status of each plan is recorded on our balance sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through net income are recorded in accumulated other comprehensive income within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost. Research & Development Research and development activities are charged to expense as incurred. Income Taxes We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. We record a valuation allowance against our deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence regarding the realizability of its deferred tax assets, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, estimated future taxable income, and whether we have a recent history of losses. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates. We have not provided deferred tax liabilities for the impact of U.S. income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the U.S. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations. Furthermore, we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position in consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of the proceedings (or negotiations) with the taxing authorities. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate settlement. Earnings Per Share Basic earnings per common share considers the weighted average number of common shares outstanding. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock units and unvested performance stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect. Cash and Cash Equivalents ITT considers all highly liquid investments purchased with an original maturity or remaining maturity at the time of purchase of three months or less to be cash equivalents. Cash equivalents primarily include fixed-maturity time deposits and money market investments. We record the fixed maturity time deposits at amortized cost and accrue interest during the maturity period. Concentrations of Credit Risk Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, investments and derivatives. We maintain cash and cash equivalents with various financial institutions located in different geographical regions, and our policy is designed to limit exposure to any individual counterparty. As part of our risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from financial instruments held at financial institutions. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. However, our largest customer represents approximately 12% and 10% of the December 31, 2016 and 2015 outstanding trade accounts receivable balance, respectively. ITT performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances. Factoring of Trade Receivables Factoring arrangements, whereby substantially all economic risks and rewards associated with trade receivables are transferred to a third party, are accounted for by derecognizing the trade receivables upon receipt of cash proceeds from the factoring arrangement. Factoring arrangements, whereby some, but not substantially all, of the economic risks and rewards are transferred to a third party and the assets subject to the factoring arrangement remain under the Company's control are accounted for by not derecognizing the trade receivables and recognizing any related obligations to the third party. Allowance for Doubtful Accounts We determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of our customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. Inventories Inventories, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value and are charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 12.9% and 13.2% of total 2016 and 2015 inventories, respectively. We have a LIFO reserve of $8.1 and $8.3 recorded as of December 31, 2016 and 2015, respectively. Cost of sales is generally reported using standard cost techniques with full overhead absorption that approximates actual cost. Plant, Property and Equipment Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: buildings and improvements – 5 to 40 years, machinery and equipment – 2 to 10 years, and furniture and office equipment – 3 to 7 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Repairs and maintenance costs are expensed as incurred. The Company enters into operating and capital leases for the use of premises and equipment. Rent expense related to operating lease agreements are recorded on a straight line basis, considering lease incentives and escalating rental payments. Capitalized Internal Use Software Costs incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from 3 to 7 years. Investments Investments in fixed-maturity time deposits having an original maturity exceeding three months at the time of purchase, referred to as short-term time deposits, are classified as held-to-maturity and are recorded at amortized cost, which approximates fair value. There were no short-term time deposits held as of December 31, 2016. Short-term time deposits with a cost of $64.9 as of December 31, 2015 have been presented in other current assets as short-term investments on the Consolidated Balance Sheet. We did not realize any gains or losses from the maturity of these short-term time deposits during 2016 or 2015 and interest income recognized during 2016 or 2015 was not material to our results of operations. Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of the balance sheet date. The Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $96.5 and $92.9 at December 31, 2016 and 2015, respectively. Changes in the cash surrender value during the period generally reflect gains or losses in the fair value of assets, premium payments, and policy redemptions. Gains from COLI investments of $3.0, $3.6, and $4.6 were recorded within general and administrative expenses in the Consolidated Statements of Operations during years ended December 31, 2016, 2015 and 2014, respectively. The COLI policy investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2016 and 2015 were approximately $12.6 and $13.0, respectively, however, the COLI policies do not represent a committed funding source for these obligations and as such they are subject to claims from creditors, and we can designate them for another purpose at any time. Long-Lived Asset Impairment Long-lived assets, including intangible assets with finite lives and capitalized internal use software, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. Goodwill and Intangible Assets Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of the acquired business. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are generally amortized on a straight-line basis over an estimated economic useful life, which generally ranges from 10-20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth fiscal quarter. An initial qualitative evaluation is performed which considers present events and circumstances, to determine the likelihood of impairment. If the likelihood of impairment is not considered to be more likely than not, then no further testing is performed. If it is considered to be more likely than not that the asset is impaired, then a two-step quantitative impairment test is performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded, if any. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. For indefinite-lived intangibles, if it is considered to be more likely than not that the asset is impaired, we compare the fair value of those assets to their carrying value. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. We estimate the fair value of our reporting units using an income approach. Under the income approach, we estimate fair value based on the present value of estimated future cash flows. We estimate the fair value of our indefinite-lived intangible assets using the relief from royalty method. The relief from royalty method estimates the portion of a company’s earnings attributable to an intellectual property asset based on an assumed royalty rate that the company would have paid had the asset not been owned. Business Combinations ITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill in the reporting period in which the adjustment amounts are determined. Changes to acquisition date fair values after expiration of the measurement period are recorded in earnings. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred and the costs associated with restructuring actions initiated after the acquisition are recognized separately from the business combination. Commitments and Contingencies We record accruals for commitments and loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss, and these assessments can involve a series of complex judgments about future events and may rely on estimates and assumptions that have been deemed reasonable by management. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other current information. See Note 18, Commitments and Contingencies for additional information. Environmental-Related Liabilities and Assets Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs, and that share can be reasonably estimated. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties. The Company records an asset related to its environmental exposures for insurance and other third parties. The environmental-related asset represents our best estimate of probable recoveries from third parties for costs incurred in past periods, as well as costs estimated to be incurred in future periods. Environmental costs and related recoveries are recorded within general and administrative expenses in the Consolidated Statements of Operations. Foreign Currency Translation The national currencies of our foreign subsidiaries are generally the functional currencies. Balance Sheet accounts are translated at the exchange rate in effect at the end of each period, except for equity which is translated at historical rates; Statement of Operations accounts are translated at the average rates of exchange prevailing during the period. Gains and losses resulting from foreign currency translation are reflected in the cumulative translation adjustments component of shareholders’ equity. For foreign subsidiaries that do not use the local currency as their functional currency, foreign currency assets and liabilities are remeasured to the foreign subsidiary’s functional currency using end of period exchange rates, except for nonmonetary balance sheet accounts, which are remeasured at historical exchange rates. For transactions denominated in other than the functional currency, revenue and expenses are remeasured at average exchange rates in effect during the reporting period in which the transactions occurred, except for expenses related to nonmonetary assets and liabilities. Transaction gains or losses from foreign currency remeasurement are reported in general and administrative expenses in the Consolidated Statements of Operations.
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Recent Accounting Pronouncements |
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Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all accounting standard updates (ASUs). ASUs not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial position or results of operations. Recently Adopted Accounting Pronouncements In September 2015, the FASB issued ASU 2015-16 simplifying the accounting for measurement-period adjustments. This guidance replaces the requirement that an acquirer in a business combination account for measurement period adjustments retrospectively with a requirement that an acquirer recognize adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the guidance, but early adoption is permitted. The adoption of this amendment did not have a material impact to ITT's financial statements. The effects on future periods will depend upon the nature and significance of future acquisitions. Accounting Pronouncements Not Yet Adopted In March 2016, the FASB issued ASU 2016-09 to simplify several aspects of the accounting standard for employee share-based payment transactions, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. We will adopt the new guidance beginning in the first quarter of 2017. The updates to the accounting standard include the following:
In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intending to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. The revised standard will require entities to recognize a liability for their lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at the present value of lease payments and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For finance leases, the leased asset is depreciated on a straight-line basis and recorded separately from the interest expense in the Statements of Operations, resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. The ASU requires that assets and liabilities be presented or disclosed separately and classified appropriately as current and noncurrent. The ASU further requires additional disclosure of certain qualitative and quantitative information related to lease agreements. The ASU is effective for the Company beginning in the first quarter 2019, at which time we expect to adopt the new standard. We are currently assessing our existing lease agreements and related financial disclosures to evaluate the impact of these amendments on our financial statements. |
Segment Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The Company’s segments are reported on the same basis used internally for evaluating performance and for allocating resources. Our four reportable segments are referred to as: Industrial Process, Motion Technologies, Interconnect Solutions and Control Technologies. Industrial Process manufactures engineered fluid process equipment serving a diversified mix of customers in global industries such as chemical, oil and gas, mining, and other industrial process markets and is a provider of plant optimization and efficiency solutions and aftermarket services and parts. Motion Technologies manufactures brake components and specialized sealing solutions, shock absorbers and damping technologies primarily for the global automotive, truck and trailer, public bus and rail transportation markets. Interconnect Solutions manufactures and designs a wide range of highly engineered harsh environment connector solutions that make it possible to transfer signal and power between electronic devices which service global customers for the aerospace and defense, industrial and transportation, oil and gas, and medical markets. Control Technologies manufactures specialized equipment, including fuel management, actuation, noise and energy absorption, and environmental control system components, for the aerospace and defense, and industrial markets. Corporate and Other consists of corporate office expenses including compensation, benefits, occupancy, depreciation, and other administrative costs, as well as charges related to certain matters, such as asbestos and environmental liabilities, that are managed at a corporate level and are not included in segment results when evaluating performance or allocating resources. Assets of the segments exclude general corporate assets, which principally consist of cash, investments, asbestos-related receivables, deferred taxes, and certain property, plant and equipment.
The following table provides revenue by product category, net of intercompany balances.
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Restructuring Actions |
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Restructuring Actions | RESTRUCTURING ACTIONS We have initiated various restructuring actions throughout the business during the past three years. Discussion of certain individually significant actions is provided below. Other less significant restructuring actions initiated in the past three years include various reduction in force initiatives and the relocation of certain manufacturing facilities. Restructuring costs are included as a component of general and administrative expense in our Consolidated Statements of Operations. Restructuring costs incurred during each of the previous three years ended are presented in the table below.
The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for each of the previous two years ended December 31st.
Industrial Process Restructuring Actions Since early 2015, we have been executing a series of restructuring actions focused on achieving efficiencies and reducing the overall cost structure of the Industrial Process segment. During 2016, we continued to pursue these objectives and we recognized $20.5 of restructuring costs primarily related to severance for approximately 370 employees. During 2015, we recognized restructuring costs of $12.2 for these actions. Total restructuring costs under these actions through December 31, 2016 are $32.7 mainly related to severance for approximately 570 employees. Cash payments related to these actions are expected to be substantially complete in 2018. We will continue to monitor and evaluate the need for any additional restructuring actions.
Interconnect Solutions Restructuring Actions Beginning in 2013, we initiated a series of restructuring actions to improve the overall cost structure of our ICS segment. These actions included headcount reductions of approximately 500 employees and the transition of certain production lines from one location to an existing lower cost manufacturing site. Payments related to these actions were completed in 2016. In May 2015, we initiated a separate restructuring action designed to further reduce the cost structure of the ICS segment primarily through additional headcount reductions of approximately 100 employees, for which the Company recognized costs of $6.5 during 2015. Payments related to the remaining accrual for this action are expected to be completed in 2017. The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions turnaround activities.
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES For each of the years ended December 31, 2016, 2015, and 2014 the tax data related to continuing operations is as follows:
A reconciliation of the income tax expense (benefit) for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2016, 2015, and 2014:
Our effective tax rate in 2016 includes tax benefits for previously unrecognized tax positions of approximately $13.4 due to the completion of tax examinations and lapses in the statute of limitations. During 2015, the Company settled the U.S. income tax audit for tax years 2009 to 2011. The Company recorded a tax benefit of $18.0 in continuing operations, which includes a net tax benefit of $8.0 from favorable audit adjustments and $10.0 from the recognition of previously unrecognized tax benefits. In addition, this U.S. income tax audit resulted in a tax benefit of $20.9 related to discontinued operations, which includes net tax expense of $17.4 from unfavorable audit adjustments and a tax benefit of $38.3 from the recognition of previously unrecognized tax positions. In accordance with the existing Tax Matters Agreement with Exelis and Xylem, the Company is entitled to reimbursement for a portion of the tax liability and has recorded a receivable of $1.6 and $13.2 in continuing and discontinued operations, respectively. During 2016, ITT collected those receivables from Exelis and Xylem. As a result of investment opportunities and other factors, and their impact on the Company’s expected liquidity, certain earnings generated in Hong Kong, Japan, Luxembourg, The Netherlands, and South Korea may be repatriated in the future and are therefore not considered to be indefinitely reinvested outside of the U.S. In 2016, the Company repatriated certain foreign earnings of its Luxembourg subsidiary and accordingly reversed a portion of deferred tax liability. Also in 2016, the Company recorded incremental deferred tax liability on an additional amount of undistributed foreign earnings of its Luxembourg subsidiary. The Company also recorded additional deferred tax liabilities on the current year earnings of the foreign subsidiaries in The Netherlands, Japan, and South Korea. The net movement in the Company's deferred tax liability was an increase of $12.7. We have not provided for deferred taxes on the remaining excess of financial reporting over tax bases of investments in foreign subsidiaries in the amount of $671.6 because we plan to reinvest such earnings indefinitely outside of the U.S. While the amount of U.S. federal income taxes, if such earnings are distributed in the future, cannot be determined, such taxes may be reduced by tax credits and other tax deductions. As of December 31, 2016, the amount of cash, cash equivalents and marketable securities held by foreign subsidiaries was $435.5. Our intent is to permanently reinvest these funds outside of the U.S., and current plans do not anticipate that we will need funds generated from foreign operations to fund our domestic operations in excess of those on which a deferred tax liability has been recorded. In the event funds from foreign operations are needed to fund operations in the U.S. and if U.S. tax has not already been previously provided, we would be required to accrue and pay additional U.S. taxes to repatriate these funds. Deferred tax assets and liabilities include the following:
Deferred taxes are presented in the Consolidated Balance Sheets as follows:
The table included below provides a rollforward of our valuation allowance on net deferred income tax assets from December 31, 2013 to December 31, 2016.
After considering all available evidence, including cumulative income and the absence of any significant negative evidence, the Company released the valuation allowance against certain foreign net deferred tax assets in Germany. The Company continues to maintain a valuation allowance against certain deferred tax assets attributable to state net operating losses and tax credits, and certain foreign net deferred tax assets primarily in Luxembourg, Germany and India which are not expected to be realized. We have the following tax attributes available for utilization at December 31, 2016:
We have approximately $152.1 of net operating loss carryforwards in Luxembourg as of December 31, 2016 that do not expire. Shareholders’ equity at December 31, 2016 and 2015 includes excess income tax benefits related to stock-based compensation in 2016 and 2015 of approximately $3.2 and $3.4, respectively. Uncertain Tax Positions We recognize income tax benefits from uncertain tax positions only if, based on the technical merits of the position, it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The tax benefits recognized in the Consolidated Financial Statements from such positions are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2016, 2015, and 2014 is as follows:
As of December 31, 2016, $27.0 and $3.1 of the unrecognized tax benefits would affect the effective tax rate for continuing operations and discontinued operations respectively, if realized. The Company operates in various tax jurisdictions and is subject to examination by tax authorities in these jurisdictions. The Company is currently under examination in several jurisdictions including Canada, China, Germany, Hong Kong, Italy, Korea, Mexico, the U.S. and Venezuela. The calculation of our tax liability for unrecognized tax benefits includes dealing with uncertainties in the application of complex tax laws and regulations in various tax jurisdictions. Due to the complexity of some uncertainties, the ultimate resolution may result in a payment that is materially different from our current estimate of the unrecognized tax benefit. Over the next 12 months, the net amount of the tax liability for unrecognized tax benefits in foreign and domestic jurisdictions could change by approximately $16 due to changes in audit status, expiration of statutes of limitations and other events. The settlement of any future examinations could result in changes in the amounts attributable to the Company under its existing Tax Matters Agreement with Exelis and Xylem. The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2016:
We classify interest relating to tax matters as a component of interest expense and tax penalties as a component of income tax expense in our Consolidated Statements of Operations. During 2016, 2015, and 2014 we recognized a net interest benefit of $2.9, a net interest benefit of $5.7, and a net interest expense of $0.8, respectively, related to tax matters. We had $6.8, $9.8, and $19.4 of interest expense accrued from continuing and discontinued operations related to tax matters as of December 31, 2016, 2015, and 2014, respectively. Tax Matters Agreement On October 25, 2011, we entered into a Tax Matters Agreement with Exelis and Xylem that governs the respective rights, responsibilities and obligations of the companies after the 2011 spin-off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U.S. Federal, state, local and foreign income taxes, other tax matters and related tax returns. Exelis and Xylem have liability with ITT to the U.S. Internal Revenue Service (IRS) for the consolidated U.S. Federal income taxes of the ITT consolidated group relating to the taxable periods in which Exelis and Xylem were part of that group. During 2015, the Company settled the U.S. income tax audit for tax years 2009 to 2011. Pursuant to the Tax Matters Agreement, the Company was entitled to reimbursement for a portion of the tax liability and recorded an aggregate receivable of $14.8 from Exelis and Xylem as of December 31, 2015. During 2016, ITT collected the receivables from Exelis and Xylem. Exelis reimbursed ITT for an additional $1.5 of Tax Matters Agreement balances related to compliance and audit service fees and U.S. state refunds. The settlement of future examinations in state or foreign jurisdictions and additional audit service fees may result in changes in amounts attributable to us through the Tax Matters Agreement entered into with Exelis and Xylem. Currently we cannot reasonably estimate the amount of such changes.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE DATA The following table provides a reconciliation of the data used in the calculation of basic and diluted common shares outstanding for the three years ended December 31, 2016, 2015 and 2014.
The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three years ended December 31, 2016, 2015 and 2014 because they were anti-dilutive.
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Receivables, Net |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, Net | RECEIVABLES, NET
The following table displays a rollforward of the allowance for doubtful accounts for the years ended December 31, 2016, 2015, and 2014.
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Inventories, Net |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories, Net | INVENTORIES, NET
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Other Current and Non-Current Assets |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current and Non-Current Assets | OTHER CURRENT AND NON-CURRENT ASSETS
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Plant, Property and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Plant, Property and Equipment, Net | PLANT, PROPERTY AND EQUIPMENT, NET
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Goodwill and Other Intangible Assets, Net |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets, Net | GOODWILL AND OTHER INTANGIBLE ASSETS, NET Goodwill Changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 by segment are as follows:
Goodwill acquired during 2015 relates to the Wolverine acquisition at Motion Technologies and the Hartzell Aerospace acquisition at Control Technologies. See Note 21, Acquisitions, for further information. Goodwill of $2.7 was written-off during the second quarter of 2015 in connection with the sale of an industrial product line within our Control Technologies segment. The sale of this product line resulted in a net gain of $0.1, which included the allocation of goodwill. Despite the recent downturn in the oil and gas markets, the results of our annual impairment test determined that no impairment of goodwill existed as of the measurement date in 2016 or 2015. However, future goodwill impairment tests could result in a charge to earnings. We will continue to evaluate goodwill on an annual basis as of the beginning of our fourth fiscal quarter and whenever events and changes in circumstances indicate there may be a potential impairment. Other Intangible Assets Information regarding our other intangible assets is as follows:
Indefinite-lived intangibles primarily consist of brands and trademarks. During the second quarter of 2016, we recognized an impairment loss of $4.1 related to indefinite-lived trade names within our Industrial Process segment. The impairment loss was the result of the challenging economic conditions within the upstream oil and gas market. During 2015, we recognized an impairment loss of $1.8 for various identified intangibles within our Control Technologies segment. The impairment loss resulted from the expected decline of a non-core product line related to a customer settlement. Both impairments were recorded within general and administrative expenses. Customer relationships, proprietary technology and patents and other intangible assets are amortized over weighted average lives of approximately 12.7 years, 13.6 years and 9.3 years, respectively. The final fair value of intangible assets and their respective weighted average lives with respect to the acquisition of Wolverine and Hartzell Aerospace during 2015 are as follows:
Amortization expense related to intangible assets for 2016, 2015 and 2014 was $20.1, $14.0 and $11.1, respectively. Estimated amortization expense for each of the five succeeding years is as follows:
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Accrued Liabilities and Other Non-Current Liabilities |
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Accrued Liabilities and Other Non-Current Liabilities | ACCRUED LIABILITIES AND OTHER NON-CURRENT LIABILITIES
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Leases and Rentals |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||
Leases and Rentals | LEASES AND RENTALS ITT leases certain offices, manufacturing buildings, land, machinery, automobiles, computers and other equipment. The majority of leases expire at various dates through 2027 and may include renewal and payment escalation clauses. ITT often pays maintenance, insurance and tax expense related to leased assets. Rental expenses under operating leases were $21.1, $18.6 and $18.7 for 2016, 2015 and 2014, respectively. Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2016 are shown below.
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT
Commercial Paper Commercial paper outstanding was $113.5 and $94.5, with an associated weighted average interest rate of 1.14% and 1.04% and maturity terms less than one month from the date of issuance as of December 31, 2016 and 2015, respectively. Short-term Loans On November 25, 2014, we entered into a competitive advance and revolving credit facility agreement (the Revolving Credit Agreement) with a consortium of third party lenders including JP Morgan Chase Bank, N.A., as administrative agent, and Citibank, N.A., as syndication agent. On November 29, 2016, we amended the Revolving Credit Agreement to extend the maturity date from November 25, 2019 to November 25, 2021. The interest rate and fees associated with drawn amounts are unchanged. The Revolving Credit Agreement provides for an aggregate principal amount of up to $500 of (i) revolving extensions of credit (the revolving loans) outstanding at any time, (ii) competitive advance borrowing option which will be provided on an uncommitted competitive advance basis through an auction mechanism (the competitive advances), and (iii) letters of credit in a face amount up to $100 at any time outstanding. Subject to certain conditions, we are permitted to terminate permanently the total commitments and reduce commitments in minimum amounts of $10. We are also permitted, subject to certain conditions, to request that lenders increase the commitments under the facility by up to $200 for a maximum aggregate principal amount of $700. Borrowings under the credit facility are available in U.S. dollars, Euros or British pound sterling. At our election, the interest rate per annum applicable to the competitive advances will be obtained from bids in accordance with competitive auction procedures. At our election, interest rate per annum applicable to the revolving loans will be based on either (i) a Eurodollar rate determined by reference to LIBOR, adjusted for statutory reserve requirements, plus an applicable margin or (ii) a fluctuating rate of interest determined by reference to the greatest of (a) the prime rate of JPMorgan Chase Bank, N.A., (b) the federal funds effective rate plus one-half of 1% or (c) the 1-month LIBOR rate, adjusted for statutory reserve requirements, plus 1%, in each case, plus an applicable margin. As of December 31, 2016, we had $100 outstanding under the credit facility, with an associated interest rate of 1.87%. As of December 31, 2015, we had $150 outstanding under the credit facility, with an associated interest rate of 1.55%. The credit facility contains customary affirmative and negative covenants that, among other things, will limit or restrict our ability to: incur additional debt or issue guarantees; create liens; enter into certain sale and lease-back transactions; merge or consolidate with another person; sell, transfer, lease or otherwise dispose of assets; liquidate or dissolve; and enter into restrictive covenants. Additionally, the Revolving Credit Agreement requires us not to permit the ratio of consolidated total indebtedness to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) (leverage ratio) to exceed 3.00 to 1.00 at any time, or the ratio of consolidated EBITDA to consolidated interest expense (interest coverage ratio) to be less than 3.00 to 1.00. At December 31, 2016, our interest coverage ratio and leverage ratio were within the prescribed thresholds. In the event of certain ratings downgrades of the Company to a level below investment grade, the direct and indirect significant U.S. subsidiaries of the Company would be required to guarantee the obligations under the credit facility.
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Postretirement Benefit Plans |
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Postemployment Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Benefit Plans | POSTRETIREMENT BENEFIT PLANS Defined Contribution Plans Substantially all of ITT’s U.S. and certain international employees are eligible to participate in a defined contribution plan. ITT sponsors numerous defined contribution savings plans, which allow employees to contribute a portion of their pre-tax and/or after-tax income in accordance with specified guidelines. Several of the plans require us to match a percentage of the employee contributions up to certain limits. Company contributions charged to income amounted to $17.3, $18.4, and $17.3 for 2016, 2015 and 2014, respectively. The ITT Stock Fund, an investment option under the ITT Inc. Retirement Savings Plan, is considered an employee stock ownership plan and, as a result, participants in the ITT Stock Fund may receive dividends in cash or may reinvest such dividends into the ITT Stock Fund. The ITT Stock Fund held approximately 0.2 shares of ITT common stock at December 31, 2016. Defined Benefit Plans ITT sponsors several defined benefit pension plans which have approximately 2,100 active participants; however, most of these plans have been closed to new participants for several years. As of December 31, 2016, of our total projected benefit obligation, the ITT Industrial Process Pension Plan represented 35%, the ITT Consolidated Hourly Pension Plan represented 41%, other U.S. plans represented 4% and international pension plans represented 20%. The U.S. plans are generally for hourly employees with a flat dollar benefit formula based on years of service. International plan benefits are primarily determined based on participant years of service, future compensation, and age at retirement or termination. ITT also provides health care and life insurance benefits for eligible U.S. employees upon retirement. In some cases, the plan is still open to certain union employees, but for the majority of our businesses these plans are closed to new participants. The majority of the liability pertains to retirees with postretirement medical insurance. Balance Sheet Information Amounts recognized as assets or liabilities in the Consolidated Balance Sheets for postretirement benefit plans reflect the funded status. The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2016 and 2015.
A portion of our projected benefit obligation includes amounts that have not yet been recognized as expense in our results of operations. Such amounts are recorded within accumulated other comprehensive loss until they are amortized as a component of net periodic postretirement cost. The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2016 and 2015.
The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans and our other employee-related defined benefit plans for the years ended December 31, 2016 and 2015.
The following table provides a rollforward of our U.S. and international pension plan and other employee-related defined benefit plan assets and the funded status as of and for the years ended December 31, 2016 and 2015.
The accumulated benefit obligation for all defined benefit pension plans was $389.4 and $415.4 at December 31, 2016 and 2015, respectively. Information for pension plans with an accumulated benefit obligation in excess of plan assets is included in the following table.
Statements of Operations Information The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2016, 2015 and 2014 as they pertain to our defined benefit pension plans.
The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2016, 2015 and 2014 as they pertain to other employee-related defined benefit plans.
The following table provides the estimated net actuarial loss and prior service cost that is expected to be amortized from accumulated other comprehensive loss into net periodic postretirement cost during 2017.
Postretirement Plan Assumptions The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental and developed in consultation with external advisors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Periodically, the Company performs experience studies to validate certain actuarial assumptions such as age of retirement, rates of turnover, utilization of optional forms of payments. In 2015, the Company performed such study for its U.S. pension plans and reflected the results in its valuation. The actuarial assumptions are based on the provisions of the applicable accounting pronouncements, review of various market data and discussion with our external advisors. Assumptions are reviewed annually and adjusted as necessary. Changes in these assumptions could materially affect our financial statements. The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to our U.S. and non-U.S. defined benefit pension plans and other employee-related defined benefit plans.
The discount rate is used to calculate the present value of expected future benefit payments at the measurement date. The discount rate assumption is based on current investment yields of high-quality fixed income investments during the retirement benefits maturity period. The pension discount rate is determined by considering an interest rate yield curve comprising AAA/AA bonds, with maturities that are generally between zero and thirty years, developed by the plan's actuaries. Annual benefit payments are then discounted to present value using this yield curve to develop a single discount rate matching the plan's characteristics. Effective as of December 31, 2015, we changed the approach used to estimate the service and interest components of net periodic benefit cost of the U.S. defined benefit plans. This estimation approach discounts the individual expected cash flows underlying the service cost and interest cost using the applicable spot rates from the yield curve used to discount the cash flows in measuring the benefit obligation. Historically, we estimated these service and interest cost components utilizing a single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. The impact of this change was not material. The rate of future compensation increase assumption for foreign plans reflects our long-term actual experience and future and near-term outlook. The rate of future compensation increase assumption is not applicable for U.S. plans because the benefit formula is based on a flat dollar benefit and years of service approach. The Company has updated the mortality assumption to reflect the most recent projection update. The assumed rate of future increases in the per capita cost of health care (the health care trend rate) is 7.5% for pre-age 65 retirees and 7.0% for post-age 65 retirees for 2017, decreasing ratably to 4.5% in 2026. Increasing the health care trend rates by one percent per year would have the effect of increasing the benefit obligation by $7.4 and the aggregate annual service and interest cost components by $0.3. A decrease of one percent in the health care trend rate would reduce the benefit obligation by $6.3 and the aggregate annual service and interest cost components by $0.3. To the extent that actual experience differs from these assumptions, the effect will be amortized over the average future working life or life expectancy of the plan participants. The expected long-term rate of return on assets reflects the expected returns for each major asset class in which the plans invest, the weight of each asset class in the target mix, the correlations among asset classes, and their expected volatilities. Our expected return on plan assets is estimated by evaluating both historical returns and estimates of future returns based on our target asset allocation. Specifically, we estimate future returns based on independent estimates of asset class returns weighted by the target investment allocation. The chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year.
For the recognition of net periodic postretirement cost, the calculation of the expected return on plan assets is generally derived using a market-related value of plan assets based on average asset values at the measurement date over the last five years. The use of fair value, rather than a market-related value, of plan assets could materially affect net periodic postretirement cost. Investment Policy The investment strategy for managing worldwide postretirement benefit plan assets is to seek an optimal rate of return relative to an appropriate level of risk for each plan. Investment strategies vary by plan, depending on the specific characteristics of the plan, such as plan size and design, funded status, liability profile and legal requirements. During 2015, our investment policy was updated to reduce risk by increasing the target allocation in fixed income by approximately 15% with a corresponding decrease in allocations to equity investments. Based on this approach, the long-term annual rate of return on assets was estimated at 7.2% and8.0% for fiscal 2016 and 2015, respectfully. In fiscal 2017, we expect our estimate of the long term annual return on assets to be 7.0% for the U.S. defined benefit plans reflecting the current asset allocation. Substantially all of the postretirement benefit plan assets are managed on a commingled basis in a master investment trust. With respect to the master investment trust, the Company allows itself broad discretion to invest tactically to respond to changing market conditions, while staying reasonably within the target asset allocation ranges prescribed by its investment guidelines. In making these asset allocation decisions, the Company takes into account recent and expected returns and volatility of returns for each asset class, the expected correlation of returns among the different investments, as well as anticipated funding and cash flows. To enhance returns and mitigate risk, the Company diversifies its investments by strategy, asset class, geography and sector. The following table provides the allocation of postretirement benefit plan assets by asset category, as of December 31, 2016 and 2015, and the related targeted asset allocation ranges by asset category.
Fair Value of Plan Assets In measuring plan assets at fair value, a fair value hierarchy is applied which categorizes and prioritizes the inputs used to estimate fair value into three levels. The fair value hierarchy is based on maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. Classification within the fair value hierarchy is based on the lowest level input that is significant to the fair value measurement. The three levels of the fair value hierarchy are defined as follows:
Collective trusts are valued at NAV as a practical expedient and thus are not leveled in this table, but are included in the totals column to assist in reconciling to fair value of plan assets. Mutual funds are valued at quoted market prices that represent the net asset value (NAV) of shares and are classified within level 1 of the fair value hierarchy. Pension plan assets as of December 31, 2015 include an investment in a hedge fund acquired from Wolverine. The hedge fund is valued using broker quotes and classified within Level 3 of the fair value hierarchy due to the significance of unobservable inputs involved in the broker quote. This investment was sold in 2016. Cash and cash equivalents are held in money market or short-term investment funds and are classified within level 1 of the fair value hierarchy. The following table provides the investments at fair value held by our postretirement benefit plans at December 31, 2016 and 2015, by asset class.
Contributions While we make contributions to our postretirement benefit plans when considered necessary or advantageous to do so, the minimum funding requirements established by local government funding or taxing authorities, or established by other agreements, may influence future contributions. Funding requirements under IRS rules are a major consideration in making contributions to our post-retirement plans. In addition, we fund certain of our international pension plans in countries where funding is allowable and tax-efficient. During 2016 and 2015, we contributed $12.8 and $12.4 to our global pension plans, respectively. The 2016 and 2015 contributions included a $7.8 and $7.5 discretionary contribution to our U.S. pension plans, respectively. We anticipate making contributions to our global pension plans of $4.0 during 2017. We contributed $6.2 to our other employee-related defined benefit plans during both 2016 and 2015. We currently estimate that the 2017 contributions to our other employee-related defined benefit plans will be approximately $9.0. Estimated Future Benefit Payments The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans.
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Incentive Employee Compensation | LONG-TERM INCENTIVE EMPLOYEE COMPENSATION The 2011 Omnibus Incentive Plan (2011 Incentive Plan) was approved by shareholders and established in May of 2011 to provide for the awarding of options on common shares and full value restricted common shares or units to employees and non-employee directors. The number of shares initially available for issuance to participants under the 2011 Incentive Plan was 4.6. The 2011 Incentive Plan replaced the ITT Amended and Restated 2003 Equity Incentive Plan (2003 Incentive Plan) on a prospective basis and no future grants will be made under the 2003 Incentive Plan. However, any shares remaining available for issuance under the 2003 Incentive Plan became available for grant under the 2011 Incentive Plan as of the date the 2011 Incentive Plan was approved by shareholders. As of December 31, 2016, 38.5 shares were available for future grants under the 2011 Incentive Plan. ITT makes shares available for the exercise of stock options or vesting of restricted shares or units by purchasing shares in the open market. Our long-term incentive plan (LTIP) is comprised of three components: non-qualified stock options (NQOs), restricted stock units (RSUs), and performance unit awards (PSUs). The majority of RSUs settle in shares; however RSUs and PSUs granted to international employees are settled in cash. We account for NQOs and equity-settled RSUs and PSUs as equity-based compensation awards and cash-settled RSUs and PSUs are accounted for as liability-based awards. PSUs granted prior to 2016 are based on both a relative total shareholder return (TSR) metric as well as a return on invested capital (ROIC) metric, equally weighted. In 2016, PSUs granted are based on a relative TSR and relative ROIC metric, equally weighted. PSUs settle in shares, dependent upon performance, following a three-year performance period to further align payouts with stock price performance. PSUs are accounted for as two distinct awards, an ROIC award and a TSR award. LTIP costs are primarily recorded within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows:
At December 31, 2016, there was $19.1 of total unrecognized compensation cost related to non-vested equity awards. This cost is expected to be recognized ratably over a weighted-average period of 1.8 years. Additionally, unrecognized compensation cost related to liability-based awards was $2.3, which is expected to be recognized ratably over a weighted-average period of 1.8 years. Non-Qualified Stock Options Options generally vest over or at the conclusion of a 3 year period and are exercisable over 10 years, except in certain instances of death, retirement or disability. The exercise price per share is the fair market value of the underlying common stock on the date each option is granted. A summary of the status of our NQOs as of December 31, 2016, 2015 and 2014 and changes during the years then ended is presented below.
The aggregate intrinsic value of options exercised (which is the amount by which the stock price exceeded the exercise price of the options on the date of exercise) during 2016, 2015 and 2014 was $9.6, $6.6 and $22.5, respectively. The amount of cash received from the exercise of stock options was $12.3, $6.2 and $15.1 for 2016, 2015 and 2014, respectively. The income tax benefit realized during 2016, 2015 and 2014 associated with stock option exercises and lapses of restricted stock was $10.5, $6.3 and $15.1, respectively. We classify the cash flows attributable to excess tax benefits arising from stock option exercises and restricted stock lapses as a financing activity. Excess tax benefits arising from stock option exercises and restricted stock lapses were $3.2, $3.4 and $10.4 for 2016, 2015 and 2014, respectively. The following table summarizes information about ITT’s stock options at December 31, 2016:
The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based on ITT’s closing stock price of $38.57 as of December 31, 2016, which would have been received by the option holders had all option holders exercised their options as of that date. There were 0.3 options "out-of-the-money" as of December 31, 2016. As of December 31, 2016, the total number of stock options expected to vest (including those that have already vested) was 1.4. These stock options have a weighted-average exercise price of $30.40, an aggregate intrinsic value of $12.9 and a weighted-average remaining contractual life of 7.8 years. The fair value of each option grant was estimated on the date of grant using the binomial lattice pricing model which incorporates multiple and variable assumptions over time, including assumptions such as employee exercise patterns, stock price volatility and changes in dividends. The following are weighted-average assumptions for 2016, 2015 and 2014:
Expected volatilities for option grants were based on a peer average of historical and implied volatility. ITT uses historical data to estimate option exercise and employee termination behavior within the valuation model. The expected life assumption represents an estimate of the period of time options are expected to remain outstanding. The expected life provided above represents the weighted average of expected behavior for two separate groups of employees who have historically exhibited different behavior. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of option grant. Restricted Stock Units and Performance Units The fair value of equity-settled restricted stock units is determined using the closing price of the Company’s common stock on date of grant. The fair value of cash-settled RSUs is remeasured using the closing price of the Company's common stock at the end of each reporting period. Recipients do not have voting rights and do not receive cash dividends during the restriction period. Dividend equivalents on RSUs, which are subject to forfeiture, are accrued and paid in cash upon vesting of the RSU, which typically occurs three years from the date of grant. If an employee retires or is terminated other than for cause, a pro rata portion of the RSU may vest. The fair value of the ROIC awards was based on the closing price of ITT common stock on the date of grant less the present value of expected dividend payments during the vesting period. A dividend yield of 1.5% was assumed based on ITT's annualized dividend payment of $0.496 per share and the February 19, 2016 closing stock price of $33.01. The fair value of the ROIC award is fixed on the grant date; however, a probability assessment is performed each reporting period to estimate the likelihood of achieving the ROIC targets and the amount of compensation to be recognized. The ROIC award payout is subject to a payout factor which includes a maximum and minimum payout. The fair value of the TSR award was measured using a Monte Carlo simulation on the date of grant, measuring potential total shareholder return for ITT relative to the other companies in the S&P 400 Capital Goods Index (the TSR Performance Group). The expected volatility of ITT's stock price was based on the historical volatility of a peer group while expected volatility for the other companies in the TSR Performance Group was based on their own stock price history. All volatility and correlation measures were based on three years of daily historical price data through February 18, 2016, corresponding to the three-year performance period of the award. The TSR award payout is subject to a multiplier which includes a maximum and minimum payout. As the grant date occurs after the beginning of the performance period, actual TSR performance between the beginning of the performance period (December average closing stock price) and the grant date was reflected in the valuation. A dividend yield of 1.5% was assumed based on ITT's annualized dividend payment of $0.496 per share and the February 19, 2016 closing stock price of $33.01. The table below provides a rollforward of outstanding RSUs and PSUs for each of the years ended December 31, 2016, 2015 and 2014.
The table below provides the number of the outstanding equity settled RSUs, cash settled RSUs, and PSUs as of December 31, 2016, 2015 and 2014.
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Equity [Abstract] | |
Capital Stock | CAPITAL STOCK ITT has authority to issue an aggregate of 300 shares of capital stock, of which 250 shares have been designated as Common Stock having a par value of $1 per share and 50 shares have been designated as Preferred Stock not having any par or stated value. There was no Preferred Stock outstanding as of December 31, 2016 and 2015. The stockholders of ITT common stock are entitled to receive dividends when and as declared by ITT’s Board of Directors. Dividends are paid quarterly. Dividends declared were $0.496, $0.4732 and $0.44 per common share in 2016, 2015, and 2014, respectively. On October 27, 2006, a three-year $1 billion share repurchase program (Share Repurchase Program) was approved by our Board of Directors. On December 16, 2008, the provisions of the Share Repurchase Program were modified by our Board of Directors to replace the original three-year term with an indefinite term. During 2016, 2015, and 2014, we repurchased 2.0 shares, 2.0 shares, and 1.1 shares of common stock for $70.0, $80.0 and $50.0, respectively. Through December 2016, we had repurchased 20.4 shares for $829.4, including commissions, under the Share Repurchase Program. Separate from the Share Repurchase Program, the Company repurchased 0.2 shares, 0.1 shares, and 0.2 shares for an aggregate price of $7.8, $4.0, and $10.2, during 2016, 2015 and 2014, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units. On May 16, 2016, we canceled all 15.0 shares in our treasury account. Shares repurchased after May 16, 2016 were canceled following the repurchase. As of December 31, 2015 15.0 shares of Common Stock were held in our treasury account. We make shares available for the exercise of stock options and vesting of restricted stock by purchasing shares in the open market. Prior to canceling all 15.0 shares in our treasury account, we also issued shares from our treasury stock. During 2016, 2015, and 2014, we issued 1.1 shares, 0.6 shares, and 1.4 shares, respectively, related to equity compensation arrangements.
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, we are involved in litigation, claims, government inquiries, investigations and proceedings, including but not limited to those relating to environmental exposures, intellectual property matters, personal injury claims, regulatory matters, commercial and government contract issues, employment and employee benefit matters, commercial or contractual disputes, and securities matters Although the ultimate outcome of any legal matter cannot be predicted with certainty, based on present information including our assessment of the merits of the particular claim, as well as our current reserves and insurance coverage, we do not expect that such legal proceedings will have any material adverse impact on our financial statements, unless otherwise noted below. However, there can be no assurance that an adverse outcome in any of the proceedings described below will not result in material fines, penalties or damages, changes to the Company's business practices, loss of (or litigation with) customers or a material adverse effect on our financial statements. Asbestos Matters Subsidiaries of ITT, including ITT LLC and Goulds Pumps LLC, have been sued, along with many other companies in product liability lawsuits alleging personal injury due to asbestos exposure. These claims generally allege that certain products sold by our subsidiaries prior to 1985 contained a part manufactured by a third party (e.g., a gasket) which contained asbestos. To the extent these third-party parts may have contained asbestos, it was encapsulated in the gasket (or other) material and was non-friable. As of December 31, 2016, there were 30 thousand pending active claims against ITT subsidiaries, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows:
Frequently, plaintiffs are unable to identify any ITT LLC or Goulds Pumps LLC products as a source of asbestos exposure. Our experience to date is that a majority of resolved claims are dismissed without any payment from ITT subsidiaries. Management believes that a large majority of the pending claims have little or no value. In addition, because claims are sometimes dismissed in large groups, the average cost per resolved claim, as well as the number of open claims, can fluctuate significantly from period to period. ITT expects more asbestos-related suits will be filed in the future, and ITT will aggressively defend or seek a reasonable resolution, as appropriate. Estimating the Liability and Related Asset The Company records an asbestos liability, including legal fees, for costs estimated to be incurred to resolve all pending claims, as well as unasserted claims estimated to be filed against the Company over the next 10 years. The asbestos liability has not been discounted to present value due to an inability to reliably forecast the timing of future cash flows. The methodology used to estimate our asbestos liability for pending claims and claims estimated to be filed over the next 10 years relies on and includes the following:
Asbestos litigation is a unique form of litigation. Frequently, the plaintiff sues a large number of defendants and does not state a specific claim amount. After filing of the complaint, the plaintiff engages defendants in settlement negotiations to establish a settlement value based on certain criteria, including the number of defendants in the case. Rarely do the plaintiffs seek to collect all damages from one defendant. Rather, they seek to spread the liability, and thus the payments, among many defendants. As a result, the Company is unable to estimate the maximum potential exposure to pending claims and claims estimated to be filed over the next 10 years. The forecast period used to estimate our potential liability to pending and projected asbestos claims is a judgment based on a number of factors, including the number and type of claims filed, recent experience with pending claims activity and whether that experience is expected to continue into the future, the jurisdictions where claims are filed, the effect of any legislative or judicial developments, and the likelihood of any comprehensive asbestos legislation at the federal level. These factors have both positive and negative effects on the dynamics of asbestos litigation in the tort system and, accordingly, our estimate of the asbestos exposure. Developments related to asbestos tend to be long-cycle, changing over multi-year periods. Accordingly, we monitor these and other factors and periodically assess whether an alternative forecast period is appropriate. The Company retains a consulting firm to assist management in estimating the potential liability for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the methodology described above. Our methodology determines a point estimate based on our assessment of the value of each underlying assumption, rather than a range of reasonably possible outcomes. Projecting future asbestos costs is subject to numerous variables and uncertainties that are inherently difficult to predict. In addition to the uncertainties surrounding the key assumptions discussed above, additional uncertainty related to asbestos claims and estimated costs arises from the long latency period prior to the manifestation of an asbestos-related disease, changes in available medical treatments and changes in medical costs, changes in plaintiff behavior resulting from bankruptcies of other companies that are or could be co-defendants, uncertainties surrounding the litigation process from jurisdiction to jurisdiction and from case to case, and the impact of potential legislative or judicial changes. At December 31, 2016, approximately 24% of the recorded asbestos liability relates to pending claims, with the remainder relating to claims estimated to be filed over the next 10 years. We record a corresponding undiscounted asbestos-related asset that represents our best estimate of probable recoveries from our insurers for the estimated asbestos liabilities. In developing this estimate, the Company considers coverage-in-place and other agreements with its insurers, as well as a number of additional factors. These additional factors reviewed include the financial viability of our insurance carriers and any related solvency issues, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, the extent to which settlement and defense costs will be reimbursed by the insurance policies and interpretation of the various policy and contract terms and limits and their interrelationships, and various judicial determinations relevant to our insurance programs. The timing and amount of reimbursements will vary due to a time lag between when ITT pays an amount to defend or settle a claim and when a reimbursement is received from an insurer, differing policy terms and certain gaps in our insurance coverage as a result of uninsured periods, insurer insolvencies, and prior insurance settlements. Approximately 81% of our estimated receivables are due from insurers that had credit ratings of A- or better from A.M. Best as of December 31, 2016. In addition, the Company retains an insurance consulting firm to assist management in estimating probable recoveries for pending asbestos claims and for claims estimated to be filed over the next 10 years based on the analysis of policy terms, the likelihood of recovery provided by external legal counsel, and incorporating risk mitigation judgments where policy terms or other factors are not certain. The aggregate amount of insurance available to the Company for asbestos-related claims was acquired over many years and from many different carriers. Amounts deemed not recoverable generally are due from insurers that are insolvent, or result from disagreements with the insurers over policy terms, coverage limits or coverage disputes. Such limitations in our insurance coverage are expected to result in projected payments to claimants substantially exceeding the probable insurance recovery. The Company has negotiated with certain of its insurers to reimburse the Company for a portion of its indemnity and defense costs through "coverage-in-place" agreements or policy buyout agreements. The agreements are designed to facilitate the collection of ITT’s insurance portfolio, to mitigate issues that insurers may raise regarding their responsibility to respond to claims, and to promote an orderly exhaustion of the policies. As of December 31, 2016, approximately 46% of our asbestos-related assets were related to coverage-in-place agreements and buyout agreements with insurers. After reviewing our portfolio of insurance policies, with consideration given to applicable deductibles, retentions and policy limits, the solvency and historical payment experience of various insurance carriers, existing insurance settlements, and the advice of outside counsel with respect to the applicable insurance coverage law relating to the terms and conditions of its insurance policies, ITT believes that its recorded receivable for insurance recoveries is probable of collection. Estimating our exposure to pending asbestos claims and those that may be filed in the future is subject to significant uncertainty and risk as there are multiple variables that can affect the timing, severity, quality, quantity and resolution of claims. Any predictions with respect to the variables impacting the estimate of the asbestos liability and related asset are subject to even greater uncertainty as the projection period lengthens. In light of the uncertainties and variables inherent in the long-term projection of the Company’s asbestos exposures, although it is probable that the Company will incur additional costs for asbestos claims filed beyond the next 10 years which could be material to the financial statements, we do not believe there is a reasonable basis for estimating those costs at this time. The asbestos liability and related receivables reflect management’s best estimate of future events. However, future events affecting the key factors and other variables for either the asbestos liability or the related receivables could cause actual costs or recoveries to be materially higher or lower than currently estimated. Due to these uncertainties, as well as our inability to reasonably estimate any additional asbestos liability for claims which may be filed beyond the next 10 years, it is difficult to predict the ultimate cost of resolving all pending and unasserted asbestos claims. We believe it is possible that future events affecting the key factors and other variables within the next 10 years, as well as the cost of asbestos claims filed beyond the next 10 years, net of expected recoveries, could have a material adverse effect on our financial statements. Settlement Agreements During 2016, ITT entered into two settlement agreements with insurers to settle responsibility for multiple insurance claims. Under the terms of the settlements, the insurers agreed to a payment or specified series of payments to a QSF, resulting in a net loss of $2.1. During 2015, ITT entered into settlement agreements with insurers to settle responsibility for certain insured claims through a series of payments into a QSF to be paid over the next three years, resulting in a benefit of $8.9. During 2014, ITT executed a final settlement agreement with an insurer to settle responsibility for multiple insurance claims, resulting in a one-time lump sum payment to a QSF of $2.2 in 2015. Defense Cost Adjustment During 2015, the Company changed its asbestos defense strategy and retained a single firm to defend the Company in all asbestos litigation. This long-term strategy streamlined the Company’s management of cases and significantly reduced defense costs. Our agreement with the defense firm was initially limited to a certain set of claims and the remaining claims were expected to transition within the next four years; however, the Company was able to transition the remaining claims during the second quarter of 2016 as a result of one of the settlements described above. Based on the terms of the agreement, the Company adjusted its asbestos liability and related assets and recognized a net benefit of $4.9 and $100.7 in 2016 and 2015, respectively, for the revised estimate of the cost to defend pending claims and claims expected to be filed over the next 10 years. Statements of Operations Charges The table below summarizes the total net asbestos charge for the years ended December 31, 2016, 2015 and 2014.
Changes in Financial Position The following table provides a rollforward of the estimated asbestos liability and related assets for the years ended December 31, 2016 and 2015.
Environmental Matters In the ordinary course of business, we are subject to federal, state, local, and foreign environmental laws and regulations. We are responsible, or are alleged to be responsible, for ongoing environmental investigation and site remediation. These sites are in various stages of investigation and/or remediation and in many of these proceedings our liability is considered de minimis. We have received notification from the U.S. Environmental Protection Agency, and from similar state and foreign environmental agencies, that a number of sites formerly or currently owned and/or operated by ITT, and other properties or water supplies that may be or have been impacted from those operations, contain disposed or recycled materials or wastes and require environmental investigation and/or remediation. These sites include instances where we have been identified as a potentially responsible party under federal and state environmental laws and regulations. Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Environmental-related assets represent estimated recoveries from insurance providers and other third parties. The following table provides a rollforward of the estimated current and long-term environmental liability for the years ended December 31, 2016 and 2015.
In the fourth quarter of 2015, ITT entered into a settlement agreement with one of our insurance providers whereby the provider agreed to pay the net present value of the remaining limits of the policy amounting to approximately $34.2. In the first quarter of 2016, the Company received $2.0 in cash and $32.2 was deposited into a QSF which can be drawn upon only to pay future environmental expenses associated with remediation sites covered under the policy, including sites owned by a former subsidiary of the Company. The Company recorded $23.0 of deferred income related to the settlement representing the excess of QSF monies over the probable liabilities associated with the covered remediation sites. In addition to the QSF asset, there is a receivable of $2.0 from other third parties for reimbursement of environmental costs. The total environmental-related asset as of December 31, 2016 and 2015 was $33.4 and $10.8, respectively. The following table illustrates the reasonably possible high range of estimated liability, and number of active sites for environmental matters.
As actual costs incurred at identified sites in future periods may vary from our current estimates given the inherent uncertainties in evaluating environmental exposures, management believes it is possible that the outcome of these uncertainties may have a material adverse effect on our financial statements. Other Matters The Company is responding to a civil subpoena from the Department of Defense, Office of the Inspector General, which was issued in the second quarter of 2015 as part of an investigation being led by the Civil Division of the U.S. Department of Justice. The subpoena and related investigation involve certain products manufactured by the Company’s Interconnect Solutions segment that are purchased or used by the U.S. government. The Company is cooperating with the government and producing documents responsive to the subpoena. The Company is unable to estimate the timing or outcome of this matter.
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Guarantees, Indemnities and Warranties |
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Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees, Indemnities and Warranties | GUARANTEES, INDEMNITIES AND WARRANTIES Indemnities Since our founding in 1920, we have acquired and disposed of numerous entities. The related acquisition and disposition agreements contain various representation and warranty clauses and may provide indemnities for a misrepresentation or breach of the representations and warranties by either party. The indemnities address a variety of subjects; the term and monetary amounts of each such indemnity are defined in the specific agreements and may be affected by various conditions and external factors. Many of the indemnities have expired either by operation of law or as a result of the terms of the agreement. We do not have a liability recorded for these expired indemnifications and are not aware of any claims or other information that would give rise to material payments under such indemnities. As part of the 2011 spin-off, ITT LLC agreed to provide certain indemnifications and cross-indemnifications among ITT LLC, Exelis and Xylem, subject to limited exceptions with respect to certain employee claims and other liabilities and obligations. The indemnifications address a variety of subjects, including asserted and unasserted product liability matters (e.g., asbestos claims, product warranties) which relate to products manufactured, repaired and/or sold prior to the 2011 spin-off. These indemnifications last indefinitely and are not affected by Harris' acquisition of Exelis. ITT LLC expects Exelis and Xylem to fully perform under the terms of the Distribution Agreement and therefore has not recorded a liability for matters for which we have been indemnified. In addition, both Exelis and Xylem have made asbestos indemnity claims that could give rise to material payments under the indemnity provided by ITT LLC; such claims are included in our estimate of asbestos liabilities. Guarantees We have $146.5 of guarantees, letters of credit and similar arrangements outstanding at December 31, 2016, primarily pertaining to commercial or performance guarantees and insurance matters. We have not recorded any material loss contingencies under these guarantees, letters of credit and similar arrangements as of December 31, 2016 as the likelihood of nonperformance by ITT is considered remote. From time to time, we may provide certain third-party guarantees that may be affected by various conditions and external factors, some of which could require that payments be made under such guarantees. We do not consider the maximum exposure or current recorded liabilities under our third-party guarantees to be material either individually or in the aggregate. We do not believe such payments would have a material adverse impact on our financial statements. Warranties ITT warrants numerous products, the terms of which vary widely. In general, ITT warrants its products against defect and specific non-performance. In certain markets, such as automotive, aerospace and rail, liability for product defects could extend beyond the selling price of the product and could be significant if the defect interrupts production or results in a recall. The table included below provides changes in the warranty accrual for December 31, 2016 and 2015.
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Discontinued Operations |
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Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONSResults from discontinued operations for the year ended December 31, 2016 reflect a gain of $4.2, net of tax, primarily related to favorable resolutions of certain legacy liabilities in 2016. Results from discontinued operations for the year ended December 31, 2015 reflect a gain of $39.4, principally related to the settlement of the U.S. income tax audit. This includes a tax benefit of $38.3 from the recognition of previously unrecognized tax positions, related net interest income of $3.2, and a $13.2 receivable due from Exelis and Xylem, partially offset by net tax expense of $17.4 from unfavorable audit adjustments. Results from discontinued operations for the year ended December 31, 2014 reflect a loss of $3.9, primarily related to a settlement payment to a former ITT entity. |
Acquisitions Acquisitions (Notes) |
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Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions Disclosure [Text Block] | ACQUISITIONS Wolverine Automotive Holdings On October 5, 2015, we completed the acquisition of Wolverine Automotive Holdings Inc., the parent company of Wolverine Advanced Materials LLC (Wolverine). Wolverine, which reported 2014 revenues of $154, including $17 of sales to ITT, is a manufacturer of customized technologies for automotive braking systems and specialized sealing solutions for harsh operating environments across a range of industries. The purchase price of $307.0 net of cash acquired, was funded through a combination of cash and borrowings from our revolving credit facility. The final purchase price allocation is based on the fair value of assets acquired, liabilities assumed and non-controlling interests in Wolverine as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired of $164.2 was recorded as goodwill (which is expected to be deductible for income tax purposes). All of the goodwill has been assigned to the Motion Technologies segment. Other intangibles acquired include existing customer relationships, proprietary technology, and trade names. Hartzell Aerospace On March 31, 2015, we completed the acquisition of Environmental Control Systems (f/k/a Hartzell Aerospace) for a purchase price of $52.9 that was funded through additional commercial paper borrowings. Hartzell Aerospace, which reported 2014 revenues of $34, designs and manufactures products to support aerospace applications, featuring a differentiated portfolio of environmental control system components and an established aftermarket business. The acquisition is being reported within the Control Technologies segment and complements the ITT aerospace growth platform, with customer and sales channel alignment and key high-growth and next-generation platform expansion opportunities. The final purchase price allocation is based on the fair value of assets acquired and liabilities assumed as of the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired of $13.7 was recorded as goodwill (which is expected to be deductible for income tax purposes). All of the goodwill has been assigned to the Control Technologies segment. Allocation of Purchase Price for Wolverine and Hartzell Aerospace
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Subsequent Events Subsequent Events (Notes) |
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Dec. 31, 2016 | |
Subsequent Event [Line Items] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Axtone Railway Components On January 26, 2017, we completed the acquisition of Axtone Railway Components for cash consideration of $120.6. The final purchase price is subject to a customary net working capital adjustment. Axtone, with estimated 2016 revenue of $80 and approximately 660 employees, is a manufacturer of highly engineered and customized energy absorption solutions for railway and other harsh-environment industrial markets, including springs, buffers and coupler components that are critical safety technologies. Axtone will be reported within the Motion Technologies segment.
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Description of Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Description of Business | Description of Business ITT Inc. is a diversified manufacturer of highly engineered critical components and customized technology solutions for the energy, transportation, and industrial markets. Unless the context otherwise indicates, references herein to "ITT," "the Company," and such words as "we," "us," and "our" include ITT Inc. and its subsidiaries. ITT operates through four segments: Industrial Process, consisting of industrial pumping and complementary equipment; Motion Technologies, consisting of friction and shock & vibration equipment; Interconnect Solutions, consisting of electronic connectors; and Control Technologies, consisting of fluid handling, motion control, and noise and energy absorption products. Financial information for our segments is presented in Note 3, Segment Information. On May 16, 2016, we consummated a corporate reorganization into a holding company structure. As a result of the reorganization ITT Inc., an Indiana corporation that was previously a wholly owned subsidiary of ITT Corporation, became the publicly traded holding company of ITT Corporation and its subsidiaries and the successor issuer to ITT Corporation under Rule 12g-3(a) under the Securities Exchange Act of 1934 (Exchange Act). As the successor issuer, ITT Inc. common stock was deemed to be registered under Section 12(b) of the Exchange Act and ITT Inc. succeeded to ITT Corporation’s obligation to file reports, proxy statements and other information required by the Exchange Act with the SEC. For additional information regarding the holding company reorganization, please refer to the Current Report on Form 8-K that we filed with the SEC on May 16, 2016. On October 31, 2011, ITT completed the tax-free spin-off of its Defense and Information Solutions business, Exelis Inc. (Exelis), and its water-related businesses, Xylem Inc. (Xylem) by way of a distribution of all of the issued and outstanding shares of Exelis common stock and Xylem common stock, on a pro rata basis, to ITT shareholders of record on October 17, 2011. This transaction is referred to in this report as the “2011 spin-off.” On May 29, 2015, Harris Corporation acquired Exelis. Basis of Presentation The Consolidated Financial Statements and Notes thereto were prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Estimates are revised as additional information becomes available. Estimates and assumptions are used for, but not limited to, asbestos-related liabilities and recoveries from insurers, revenue recognition, unrecognized tax benefits, deferred tax valuation allowances, projected benefit obligations for postretirement plans, accounting for business combinations, goodwill and other intangible asset impairment testing, environmental liabilities, allowance for doubtful accounts and inventory valuation. Actual results could differ from these estimates.
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Principles of Consolidation | Principles of ConsolidationOur consolidated financial statements include the accounts of all majority-owned subsidiaries. ITT consolidates companies in which it has a controlling financial interest or when ITT is considered the primary beneficiary of a variable interest entity. We account for investments in companies over which we have the ability to exercise significant influence, but do not hold a controlling interest under the equity method, and we record our proportionate share of income or losses in the Consolidated Statements of Operations. The results of companies acquired or disposed of during the fiscal year are included in the Consolidated Financial Statements from the effective date of acquisition or up to the date of disposal or distribution. All intercompany transactions have been eliminated. | ||||||||||||
Revenue Recognition | Revenue Recognition Revenue is derived from the sale of products and services to customers. The following revenue recognition policies describe the manner in which we account for different classes of revenue transactions. Revenue is recognized when persuasive evidence of an arrangement exists, the sales price is fixed or determinable, collectability is reasonably assured and delivery has occurred or services have been rendered. For product sales, other than long-term construction and production-type contracts (referred to as design and build arrangements), we recognize revenue at the time title and risks and rewards of ownership pass to the customer, which is generally when products are shipped, and the contractual terms have been fulfilled. Certain contracts with customers require delivery, installation, testing, certification or other acceptance provisions to be satisfied before revenue is recognized. In instances where contractual terms include a provision for customer acceptance, revenue is recognized when either (i) we have previously demonstrated that the product meets the specified criteria based on either seller or customer-specified objective criteria or (ii) on formal acceptance received from the customer where the product has not been previously demonstrated to meet customer-specified objective criteria. We recognize revenue on product sales to channel partners, including resellers, distributors or value-added solution providers at the time of sale when the channel partners have economic substance apart from ITT and ITT has completed its obligations related to the sale. Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered or over the service period. For multiple deliverable arrangements, we recognize revenue based on the relative selling price if the deliverable has stand-alone value to the customer and, in arrangements that include a general right of return relative to the delivered element, performance of the undelivered element is considered probable and substantially in the Company’s control. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (VSOE), if available, third-party evidence of selling price (TPE), if VSOE is not available, or best estimated selling price (BESP), if neither VSOE nor TPE is available. The deliverables in our arrangements with multiple elements include various products and may include related services, such as installation and start-up services. We allocate arrangement consideration based on the relative selling prices of the separate units of accounting determined in accordance with the hierarchy described above. For deliverables that are sold separately, we establish VSOE based on the price when the deliverable is sold separately. We establish TPE, generally for services, based on prices similarly situated customers pay for similar services from third party vendors. For those deliverables for which we are unable to establish VSOE or TPE, we estimate the selling price considering various factors including market and pricing trends, geography, product customization, and profit objectives. Revenue for multiple element arrangements is recognized when the appropriate revenue recognition criteria for the individual deliverable have been satisfied. We generally recognize revenue for certain long-term design and build projects using the percentage-of-completion method, based upon the percentage of costs incurred to total projected costs. Revenue and profit recognized under the percentage-of-completion method are based on management’s estimates. Amounts invoiced to customers in excess of revenue recognized are recorded as deferred revenue, until the revenue recognition criteria are satisfied. Revenue that is earned and recognized in excess of amounts invoiced is recorded as a component of receivables, net. During the performance of long-term sales contracts, estimated final contract prices and costs are reviewed quarterly and revisions are made as required and recorded in income in the period in which they are determined. We apply the completed-contract method of accounting for smaller design and build contracts, including those of short-term duration. Amounts invoiced to customers in excess of revenue recognized are recorded as a reduction of inventory to the extent project costs have accumulated within inventory or as deferred revenue, within accrued liabilities, until the revenue recognition criteria are satisfied. Our results of operations and financial position would not vary materially had we used the percentage-of-completion method for these types of contracts. Provisions for estimated losses on uncompleted design and build arrangements are recognized in the period in which such losses are determined. Provisions for estimated losses are recorded as a component of costs of revenue. We record a reduction in revenue at the time of sale for estimated product returns, rebates and other allowances, based on historical experience and known trends. Revenue is reported net of any required taxes collected from customers and remitted to government authorities, with the collected taxes recorded as current liabilities until remitted to the relevant government authority.
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Shipping and Handling Costs | Shipping and Handling CostsShipping and handling costs are recorded as a component of costs of revenue. | ||||||||||||
Product Warranties | Product WarrantiesOur standard product warranty terms generally include post-sales support and repairs or replacement of a product at no additional charge for a specified period of time. Accruals for estimated expenses related to product warranties are made at the time revenue is recognized and are recorded as a component of costs of revenue. We estimate the liability for warranty claims based on our standard warranties, the historical frequency of claims and the cost to replace or repair our products under warranty. Factors that influence our warranty liability include the number of units sold, the length of warranty term, historical and anticipated rates of warranty claims and the cost per claim. | ||||||||||||
Asbestos-Related Liabilities and Assets | Asbestos-Related Liabilities and Assets Subsidiaries of ITT, including ITT LLC and Goulds Pumps LLC, have been named as a defendant in numerous product liability lawsuits alleging personal injury due to asbestos exposure. We accrue the estimated value of pending claims and unasserted claims estimated to be filed over the next 10 years, including legal fees, on an undiscounted basis, due to the inability to reliably forecast the timing of future cash flows. Assumptions utilized in estimating the liability for both pending and unasserted claims include: disease type, average settlement costs, percentage of claims settled or dismissed, the number of claims estimated to be filed against the Company in the future and the costs to defend such claims. The Company has also recorded an asbestos-related asset composed of insurance receivables. The asbestos-related asset represents our best estimate of probable recoveries from third parties for pending claims, as well as unasserted claims estimated to be filed over the next 10 years. In developing this estimate, the Company considers coverage-in-place and other settlement agreements with its insurers, as well as a review of expected levels of future cost recovery, the financial viability of the insurance companies, the method by which losses will be allocated to the various insurance policies and the years covered by those policies, and interpretation of the various policy and contract terms and limits and their interrelationships. Consistent with the asbestos liability, the asbestos-related asset has not been discounted to present value due to the inability to reliably forecast the timing of future cash flows. Under coverage-in-place agreements, an insurer’s policies remain in force and the insurer undertakes to provide coverage for the Company’s pending and future asbestos claims on specified terms and conditions. Insurance payments under coverage-in-place agreements are made to the Company as asbestos claims are settled or adjudicated. The Company’s buyout agreements provide an agreed upon amount of available coverage for future asbestos claims under the subject policies to be paid to a Qualified Settlement Fund (QSF) on a specific schedule as agreed upon by the Company and its insurer. However, assets in the QSF are only available and distributed when qualifying asbestos expenditures are submitted for reimbursement as defined in the QSF agreement. Therefore, recovery of insurance reimbursements under these types of agreements is dependent on the timing of the payment of the liability and, consistent with the asbestos liability, have not been discounted to present value. In the third quarter each year we conduct an asbestos remeasurement with the assistance of outside consultants to review and update, as appropriate, the underlying assumptions used to estimate our asbestos liability and related assets, including a reassessment of the time horizon over which a reasonable estimate of unasserted claims can be projected. In addition, as part of our ongoing review of our net asbestos exposure, each quarter we assess the most recent data available for the key inputs and assumptions, comparing the data to the expectations on which the most recent annual liability and asset estimates were based. Provided the quarterly review does not indicate a more detailed evaluation of our asbestos exposure is required, each quarter we record a net asbestos expense to maintain a rolling 10-year time horizon.
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Postretirement Benefit Plans | Postretirement Benefit Plans ITT sponsors several pension and other employee-related defined benefit plans (collectively, postretirement benefit plans). The majority of these plans are closed to new participants. Postretirement benefit obligations are generally determined, where applicable, based on participant years of service, future compensation, and age at retirement or termination. The determination of projected benefit obligations and the recognition of expenses related to postretirement benefit plans are dependent on various assumptions that are judgmental. The assumptions involved in the measurement of our postretirement benefit plan obligations and net periodic postretirement costs primarily relate to discount rates, long-term expected rates of return on plan assets, mortality and termination rates, and other factors. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist. Actual results that differ from our assumptions are accumulated and are amortized over the estimated future working life, or remaining lifetime, of the plan participants depending on the nature of the retirement plan. For the recognition of net periodic postretirement cost, the calculation of the long-term expected return on plan assets is generally derived using a market-related value of plan assets based on yearly average asset values at the measurement date over the last 5 years. The fair value of plan assets is estimated based on market prices or estimated fair value at the measurement date. The funded status of each plan is recorded on our balance sheet. Actuarial gains and losses and prior service costs or credits that have not yet been recognized through net income are recorded in accumulated other comprehensive income within shareholders’ equity, net of taxes, until they are amortized as a component of net periodic postretirement cost.
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Research and Development | Research & DevelopmentResearch and development activities are charged to expense as incurred. | ||||||||||||
Income Taxes | Income Taxes We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income tax assets and liabilities are determined based on the estimated future tax effects of differences between the financial reporting and tax bases of assets and liabilities, applying currently enacted tax rates in effect for the year in which we expect the differences will reverse. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income (including the reversals of deferred tax liabilities) during the periods in which those deferred tax assets will become deductible. We record a valuation allowance against our deferred tax assets when it is more likely than not that all or a portion of the deferred tax assets will not be realized. In assessing the need for a valuation allowance, the Company considers all available positive and negative evidence regarding the realizability of its deferred tax assets, including the future reversal of existing taxable temporary differences, taxable income in carryback periods, prudent and feasible tax planning strategies, estimated future taxable income, and whether we have a recent history of losses. The valuation allowance can be affected by changes to tax regulations, interpretations and rulings, changes to enacted statutory tax rates, and changes to future taxable income estimates. We have not provided deferred tax liabilities for the impact of U.S. income taxes on undistributed foreign earnings which we plan to reinvest indefinitely outside the U.S. We plan foreign earnings remittance amounts based on projected cash flow needs, as well as the working capital and long-term investment requirements of foreign subsidiaries and our domestic operations. Furthermore, we recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position in consideration of applicable tax statutes and related interpretations and precedents and the expected outcome of the proceedings (or negotiations) with the taxing authorities. Tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized on ultimate settlement.
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Earnings Per Share | Earnings Per ShareBasic earnings per common share considers the weighted average number of common shares outstanding. Diluted earnings per share considers the outstanding shares utilized in the basic earnings per share calculation as well as the dilutive effect of outstanding stock options and restricted stock that do not contain rights to nonforfeitable dividends. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock units and unvested performance stock units. The dilutive effect of such equity awards is calculated based on the average share price for each reporting period using the treasury stock method. Common stock equivalents are excluded from the computation of earnings per share if they have an anti-dilutive effect. | ||||||||||||
Cash and Cash Equivalents | Cash and Cash EquivalentsITT considers all highly liquid investments purchased with an original maturity or remaining maturity at the time of purchase of three months or less to be cash equivalents. Cash equivalents primarily include fixed-maturity time deposits and money market investments. We record the fixed maturity time deposits at amortized cost and accrue interest during the maturity period. | ||||||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject ITT to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, investments and derivatives. We maintain cash and cash equivalents with various financial institutions located in different geographical regions, and our policy is designed to limit exposure to any individual counterparty. As part of our risk management processes, we perform periodic evaluations of the relative credit standing of the financial institutions. We have not sustained any material credit losses during the previous three years from financial instruments held at financial institutions. Credit risk with respect to accounts receivable is generally diversified due to the large number of entities comprising ITT’s customer base and their dispersion across many different industries and geographic regions. However, our largest customer represents approximately 12% and 10% of the December 31, 2016 and 2015 outstanding trade accounts receivable balance, respectively. ITT performs ongoing credit evaluations of the financial condition of its third-party distributors, resellers and other customers and requires collateral, such as letters of credit and bank guarantees, in certain circumstances.
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Factoring of Trade Receivables [Policy Text Block] | Factoring of Trade ReceivablesFactoring arrangements, whereby substantially all economic risks and rewards associated with trade receivables are transferred to a third party, are accounted for by derecognizing the trade receivables upon receipt of cash proceeds from the factoring arrangement. Factoring arrangements, whereby some, but not substantially all, of the economic risks and rewards are transferred to a third party and the assets subject to the factoring arrangement remain under the Company's control are accounted for by not derecognizing the trade receivables and recognizing any related obligations to the third party. | ||||||||||||
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsWe determine our allowance for doubtful accounts using a combination of factors to reduce our trade receivables balances to their estimated net realizable amount. We maintain an allowance for doubtful accounts based on a variety of factors including the length of time receivables are past due, macroeconomic trends and conditions, significant one-time events, historical experience and the financial condition of our customers. We record a specific reserve for individual accounts when we become aware of specific customer circumstances, such as in the case of bankruptcy filings or deterioration in the customer’s operating results or financial position. The past due or delinquency status of a receivable is based on the contractual payment terms of the receivable. If circumstances related to the specific customer change, we adjust estimates of the recoverability of receivables as appropriate. | ||||||||||||
Inventories | Inventories Inventories, which include the costs of material, labor and overhead, are stated at the lower of cost or market, with cost generally computed on a first-in, first-out (FIFO) basis. Estimated losses from obsolete and slow-moving inventories are recorded to reduce inventory values to their estimated net realizable value and are charged to cost of sales. At the point of loss recognition, a new cost basis for that inventory is established and subsequent changes in facts and circumstances do not result in a recovery in carrying value. Inventories valued under the last-in, first-out (LIFO) method represent 12.9% and 13.2% of total 2016 and 2015 inventories, respectively. We have a LIFO reserve of $8.1 and $8.3 recorded as of December 31, 2016 and 2015, respectively. Cost of sales is generally reported using standard cost techniques with full overhead absorption that approximates actual cost.
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Plant, Property and Equipment | Plant, Property and Equipment Plant, property and equipment, including capitalized interest applicable to major project expenditures, are recorded at cost. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets as follows: buildings and improvements – 5 to 40 years, machinery and equipment – 2 to 10 years, and furniture and office equipment – 3 to 7 years. Leasehold improvements are depreciated over the life of the lease or the asset, whichever is shorter. Fully depreciated assets are retained in property and accumulated depreciation accounts until disposal. Repairs and maintenance costs are expensed as incurred. The Company enters into operating and capital leases for the use of premises and equipment. Rent expense related to operating lease agreements are recorded on a straight line basis, considering lease incentives and escalating rental payments.
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Capitalized Internal Use Software | Capitalized Internal Use SoftwareCosts incurred in the preliminary project stage of developing or acquiring internal use software are expensed as incurred. After the preliminary project stage is completed, management has approved the project and it is probable that the project will be completed and the software will be used for its intended purpose, ITT capitalizes certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. ITT amortizes capitalized internal use software costs using the straight-line method over the estimated useful life of the software, generally from 3 to 7 years. | ||||||||||||
Investments | Investments Investments in fixed-maturity time deposits having an original maturity exceeding three months at the time of purchase, referred to as short-term time deposits, are classified as held-to-maturity and are recorded at amortized cost, which approximates fair value. There were no short-term time deposits held as of December 31, 2016. Short-term time deposits with a cost of $64.9 as of December 31, 2015 have been presented in other current assets as short-term investments on the Consolidated Balance Sheet. We did not realize any gains or losses from the maturity of these short-term time deposits during 2016 or 2015 and interest income recognized during 2016 or 2015 was not material to our results of operations. Investments in corporate-owned life insurance (COLI) policies are recorded at their cash surrender values as of the balance sheet date. The Company’s investments in COLI policies are included in other non-current assets in the consolidated balance sheets and were $96.5 and $92.9 at December 31, 2016 and 2015, respectively. Changes in the cash surrender value during the period generally reflect gains or losses in the fair value of assets, premium payments, and policy redemptions. Gains from COLI investments of $3.0, $3.6, and $4.6 were recorded within general and administrative expenses in the Consolidated Statements of Operations during years ended December 31, 2016, 2015 and 2014, respectively. The COLI policy investments were made with the intention of utilizing them as a long-term funding source for deferred compensation obligations, which as of December 31, 2016 and 2015 were approximately $12.6 and $13.0, respectively, however, the COLI policies do not represent a committed funding source for these obligations and as such they are subject to claims from creditors, and we can designate them for another purpose at any time.
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Long-Lived Asset Impairment | Long-Lived Asset ImpairmentLong-lived assets, including intangible assets with finite lives and capitalized internal use software, are tested for impairment whenever events or changes in circumstances indicate their carrying value may not be recoverable. We assess the recoverability of long-lived assets based on the undiscounted future cash flow the assets are expected to generate and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset plus net proceeds expected from disposition of the asset, if any, are less than the carrying value of the asset. When an impairment is identified, we reduce the carrying amount of the asset to its estimated fair value based on a discounted cash flow approach or, when available and appropriate, to comparable market values. | ||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents purchase consideration paid in a business combination that exceeds the values assigned to the net assets of the acquired business. Intangible assets include customer relationships, proprietary technology, trademarks, patents and other intangible assets. Intangible assets with a finite life are generally amortized on a straight-line basis over an estimated economic useful life, which generally ranges from 10-20 years, and are tested for impairment if indicators of impairment are identified. Certain of our intangible assets have an indefinite life, namely certain brands and trademarks. Goodwill and indefinite-lived intangible assets are not amortized, but rather are tested for impairment annually (or more frequently if impairment indicators arise, such as changes to the reporting unit structure, significant adverse changes in the business climate or an adverse action or assessment by a regulator). We conduct our annual impairment testing on the first day of the fourth fiscal quarter. An initial qualitative evaluation is performed which considers present events and circumstances, to determine the likelihood of impairment. If the likelihood of impairment is not considered to be more likely than not, then no further testing is performed. If it is considered to be more likely than not that the asset is impaired, then a two-step quantitative impairment test is performed. If the carrying value of the reporting unit exceeds its estimated fair value, then the second step of the impairment test is performed in order to measure the impairment loss to be recorded, if any. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, then we record an impairment loss equal to the difference. For indefinite-lived intangibles, if it is considered to be more likely than not that the asset is impaired, we compare the fair value of those assets to their carrying value. We recognize an impairment loss when the estimated fair value of the indefinite-lived intangible asset is less than its carrying value. We estimate the fair value of our reporting units using an income approach. Under the income approach, we estimate fair value based on the present value of estimated future cash flows. We estimate the fair value of our indefinite-lived intangible assets using the relief from royalty method. The relief from royalty method estimates the portion of a company’s earnings attributable to an intellectual property asset based on an assumed royalty rate that the company would have paid had the asset not been owned.
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Business Combinations | Business CombinationsITT allocates the purchase price of its acquisitions to the tangible and intangible assets acquired, liabilities assumed, and non-controlling interests in the acquiree based on their estimated fair value at the acquisition date. Changes to acquisition date fair values prior to the expiration of the measurement period, a period not to exceed 12 months from date of acquisition, are recorded as an adjustment to the associated goodwill in the reporting period in which the adjustment amounts are determined. Changes to acquisition date fair values after expiration of the measurement period are recorded in earnings. The excess of the acquisition price over those estimated fair values is recorded as goodwill. Acquisition-related expenses are expensed as incurred and the costs associated with restructuring actions initiated after the acquisition are recognized separately from the business combination. | ||||||||||||
Commitments and Contingencies | Commitments and ContingenciesWe record accruals for commitments and loss contingencies when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated. In addition, legal fees are accrued for cases where a loss is probable and the related fees can be reasonably estimated. Significant judgment is required to determine both probability and the estimated amount of loss, and these assessments can involve a series of complex judgments about future events and may rely on estimates and assumptions that have been deemed reasonable by management. We review these accruals quarterly and adjust the accruals to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, and other current information. See Note 18, Commitments and Contingencies for additional information. | ||||||||||||
Environmental-Related Liabilities and Assets | Environmental-Related Liabilities and Assets Accruals for environmental matters are recorded on a site-by-site basis when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated, based on current law and existing technologies. Our estimated liability is reduced to reflect the participation of other potentially responsible parties in those instances where it is probable that such parties are legally responsible and financially capable of paying their respective shares of the relevant costs, and that share can be reasonably estimated. Accruals for environmental liabilities are primarily included in other non-current liabilities at undiscounted amounts and exclude claims for recoveries from insurance companies or other third parties. The Company records an asset related to its environmental exposures for insurance and other third parties. The environmental-related asset represents our best estimate of probable recoveries from third parties for costs incurred in past periods, as well as costs estimated to be incurred in future periods. Environmental costs and related recoveries are recorded within general and administrative expenses in the Consolidated Statements of Operations.
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Foreign Currency Translation | Foreign Currency Translation The national currencies of our foreign subsidiaries are generally the functional currencies. Balance Sheet accounts are translated at the exchange rate in effect at the end of each period, except for equity which is translated at historical rates; Statement of Operations accounts are translated at the average rates of exchange prevailing during the period. Gains and losses resulting from foreign currency translation are reflected in the cumulative translation adjustments component of shareholders’ equity. For foreign subsidiaries that do not use the local currency as their functional currency, foreign currency assets and liabilities are remeasured to the foreign subsidiary’s functional currency using end of period exchange rates, except for nonmonetary balance sheet accounts, which are remeasured at historical exchange rates. For transactions denominated in other than the functional currency, revenue and expenses are remeasured at average exchange rates in effect during the reporting period in which the transactions occurred, except for expenses related to nonmonetary assets and liabilities. Transaction gains or losses from foreign currency remeasurement are reported in general and administrative expenses in the Consolidated Statements of Operations.
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Recently Adopted Accounting Pronouncements | Recently Adopted Accounting PronouncementsIn September 2015, the FASB issued ASU 2015-16 simplifying the accounting for measurement-period adjustments. This guidance replaces the requirement that an acquirer in a business combination account for measurement period adjustments retrospectively with a requirement that an acquirer recognize adjustments to the provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The pronouncement is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The guidance is to be applied prospectively to adjustments to provisional amounts that occur after the effective date of the guidance, but early adoption is permitted. The adoption of this amendment did not have a material impact to ITT's financial statements. The effects on future periods will depend upon the nature and significance of future acquisitions. | ||||||||||||
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Accounting Pronouncements Not Yet Adopted In March 2016, the FASB issued ASU 2016-09 to simplify several aspects of the accounting standard for employee share-based payment transactions, including the classification of excess tax benefits and deficiencies and the accounting for employee forfeitures. We will adopt the new guidance beginning in the first quarter of 2017. The updates to the accounting standard include the following:
In February 2016, the FASB issued ASU 2016-02 impacting the accounting for leases intending to increase transparency and comparability of organizations by requiring balance sheet presentation of leased assets and increased financial statement disclosure of leasing arrangements. The revised standard will require entities to recognize a liability for their lease obligations and a corresponding asset representing the right to use the underlying asset over the lease term. Lease obligations are to be measured at the present value of lease payments and accounted for using the effective interest method. The accounting for the leased asset will differ slightly depending on whether the agreement is deemed to be a financing or operating lease. For finance leases, the leased asset is depreciated on a straight-line basis and recorded separately from the interest expense in the Statements of Operations, resulting in higher expense in the earlier part of the lease term. For operating leases, the depreciation and interest expense components are combined, recognized evenly over the term of the lease, and presented as a reduction to operating income. The ASU requires that assets and liabilities be presented or disclosed separately and classified appropriately as current and noncurrent. The ASU further requires additional disclosure of certain qualitative and quantitative information related to lease agreements. The ASU is effective for the Company beginning in the first quarter 2019, at which time we expect to adopt the new standard. We are currently assessing our existing lease agreements and related financial disclosures to evaluate the impact of these amendments on our financial statements. |
Segment Information (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Reporting Segments |
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Schedule of Segment Reporting Information |
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Business Segment Information by Geographical Information |
(a) Revenue to external customers is attributed to individual regions based upon the destination of product or service delivery.
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Schedule of PP&E by Geographic Region |
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Revenue by Product Category, Net of Intercompany Balances | The following table provides revenue by product category, net of intercompany balances.
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Restructuring Actions Restructuring Actions (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Costs | Restructuring costs incurred during each of the previous three years ended are presented in the table below.
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Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Accruals | The following table displays a rollforward of the restructuring accruals, presented on our Consolidated Balance Sheet within accrued liabilities, for each of the previous two years ended December 31st.
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Industrial Process [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Accruals |
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Schedule of Restructuring Accruals | The following table provides a rollforward of the restructuring accrual associated with the Interconnect Solutions turnaround activities.
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Income Taxes (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Data from Continuing Operations | For each of the years ended December 31, 2016, 2015, and 2014 the tax data related to continuing operations is as follows:
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Reconciliation of Tax Provision for Continuing Operations | A reconciliation of the income tax expense (benefit) for continuing operations from the U.S. statutory income tax rate to the effective income tax rate is as follows for each of the years ended December 31, 2016, 2015, and 2014:
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Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities include the following:
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Deferred Taxes in Consolidated Balance Sheets | Deferred taxes are presented in the Consolidated Balance Sheets as follows:
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Deferred Tax Asset Valuation Allowance Rollforward [Table Text Block] | The table included below provides a rollforward of our valuation allowance on net deferred income tax assets from December 31, 2013 to December 31, 2016.
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Attributes Available for Utilization | We have the following tax attributes available for utilization at December 31, 2016:
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Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits for each of the years ended December 31, 2016, 2015, and 2014 is as follows:
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Open Tax Years by Major Jurisdiction | The following table summarizes the earliest open tax years by major jurisdiction as of December 31, 2016:
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted Loss Per Share | The following table provides a reconciliation of the data used in the calculation of basic and diluted common shares outstanding for the three years ended December 31, 2016, 2015 and 2014.
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Number of Shares Underlying Stock Options Excluded from Computation of Diluted Loss | The following table provides the number of shares underlying stock options excluded from the computation of diluted earnings per share for the three years ended December 31, 2016, 2015 and 2014 because they were anti-dilutive.
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Receivables, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables, Net |
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Rollforward of Allowance for Doubtful Accounts | The following table displays a rollforward of the allowance for doubtful accounts for the years ended December 31, 2016, 2015, and 2014.
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Inventories, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories, Net |
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Other Current and Non-Current Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Current and Non-Current Assets |
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Plant, Property and Equipment, Net (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Plant, Property and Equipment, Net |
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Goodwill and Other Intangible Assets, Net (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 |
Dec. 31, 2015 |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 by segment are as follows:
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Finite-Lived Intangible Assets [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets | Information regarding our other intangible assets is as follows:
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Estimated Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets for 2016, 2015 and 2014 was $20.1, $14.0 and $11.1, respectively. Estimated amortization expense for each of the five succeeding years is as follows:
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Acquired Intangibles [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Intangible Assets | The final fair value of intangible assets and their respective weighted average lives with respect to the acquisition of Wolverine and Hartzell Aerospace during 2015 are as follows:
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Accrued Liabilities and Other Non-Current Liabilities (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued Liabilities and Other Non-Current Liabilities, Net |
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Leases and Rentals (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||
Future Minimum Operating Lease Payments Under Non-Cancellable Operating Leases | Future minimum operating lease payments under non-cancellable operating leases with an initial term in excess of one year as of December 31, 2016 are shown below.
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Debt |
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Postretirement Benefit Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Funded Status of Postretirement Benefit Plans and Presentation of Such Balances within Consolidated Balance Sheet | The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2016 and 2015.
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Amount Recognized in Accumulated Other Comprehensive Income Loss | The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2016 and 2015.
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Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans | The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans and our other employee-related defined benefit plans for the years ended December 31, 2016 and 2015.
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Changes in Fair Value of Plan Assets of Pension Plans | The following table provides a rollforward of our U.S. and international pension plan and other employee-related defined benefit plan assets and the funded status as of and for the years ended December 31, 2016 and 2015.
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Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets | Information for pension plans with an accumulated benefit obligation in excess of plan assets is included in the following table.
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Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) | The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2016, 2015 and 2014 as they pertain to our defined benefit pension plans.
(a) During 2016, we recognized a non-cash pretax pension settlement charge of $12.7 as the result of a program offering certain former U.S. employees with a vested pension benefit an option to take a one-time lump sum distribution as part of ITT's overall plan to de-risk its pension plans. Approximately 1,100 participants accepted the offer, resulting in a payment of $28.0 from the plan and a reduction in the Company's projected benefit obligation of $26.6, including an actuarial loss of $1.4.
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Net Loss and Prior Service Cost that will be Amortized from Accumulated Other Comprehensive Income Loss | The following table provides the estimated net actuarial loss and prior service cost that is expected to be amortized from accumulated other comprehensive loss into net periodic postretirement cost during 2017.
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Weighted Average Assumptions used to Determine Benefit Obligations | The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to our U.S. and non-U.S. defined benefit pension plans and other employee-related defined benefit plans.
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Actual Versus Expected Long Term Returns for Our Domestic Pension Plans | The chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year.
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Asset Allocation Range | The following table provides the allocation of postretirement benefit plan assets by asset category, as of December 31, 2016 and 2015, and the related targeted asset allocation ranges by asset category.
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Fair Value of Plan Assets Held by Our Postretirement Benefits Plans | The following table provides the investments at fair value held by our postretirement benefit plans at December 31, 2016 and 2015, by asset class.
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Estimated Future Benefit Payments | The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans.
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Other Postretirement Benefit Plan, Defined Benefit [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss) | The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2016, 2015 and 2014 as they pertain to other employee-related defined benefit plans.
(b) During 2015, we recognized a benefit of $4.2 from a curtailment gain related to a reduction in force in our ICS segment.
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Long-Term Incentive Employee Compensation (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-Term Incentive Employee Compensation Costs | LTIP costs are primarily recorded within general and administrative expenses, at fair value over the requisite service period (typically three years) on a straight-line basis and are reduced by an estimated forfeiture rate. These costs impacted our consolidated results of operations as follows:
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Status of Stock Option and Restricted Stock Shares | A summary of the status of our NQOs as of December 31, 2016, 2015 and 2014 and changes during the years then ended is presented below.
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Share-Based Compensation Summary of Stock Options | The following table summarizes information about ITT’s stock options at December 31, 2016:
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Weighted Average Assumptions | The following are weighted-average assumptions for 2016, 2015 and 2014:
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Rollforward of Outstanding Restricted Stock | The table below provides a rollforward of outstanding RSUs and PSUs for each of the years ended December 31, 2016, 2015 and 2014.
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Number of Outstanding Equity Settled RSUs, Cash Settled RSUs and RSAs | The table below provides the number of the outstanding equity settled RSUs, cash settled RSUs, and PSUs as of December 31, 2016, 2015 and 2014.
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Commitments and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Asbestos Claims | As of December 31, 2016, there were 30 thousand pending active claims against ITT subsidiaries, including Goulds Pumps, filed in various state and federal courts alleging injury as a result of exposure to asbestos. Activity related to these asserted asbestos claims during the period was as follows:
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Summary of Net Asbestos Charges | The table below summarizes the total net asbestos charge for the years ended December 31, 2016, 2015 and 2014.
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Roll Forward of Asbestos Liability and Related Assets | The following table provides a rollforward of the estimated asbestos liability and related assets for the years ended December 31, 2016 and 2015.
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Rollforward of Environmental Liability and Related Assets Table | The following table provides a rollforward of the estimated current and long-term environmental liability for the years ended December 31, 2016 and 2015.
(a) Changes in estimates for pre-existing accruals includes environmental-related costs of $0.7 and a reversal of prior accruals of $0.9 reported within results of discontinued operations for the years ended December 31, 2016 and 2015, respectively.
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Range of Environmental Liability and Number of Active Sites for Environmental Matters | The following table illustrates the reasonably possible high range of estimated liability, and number of active sites for environmental matters.
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Guarantees, Indemnities and Warranties (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Product Warranty Accrual | The table included below provides changes in the warranty accrual for December 31, 2016 and 2015.
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Acquisitions Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Acquired [Table Text Block] | Allocation of Purchase Price for Wolverine and Hartzell Aerospace
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Recent Accounting Pronouncements Recent Accounting Pronouncements (Details) $ in Millions |
12 Months Ended |
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Dec. 31, 2016
USD ($)
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Minimum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 1 |
Maximum [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 2 |
Segment Information - Additional Information (Detail) - Segment |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Segment Reporting [Abstract] | |||
Number of reportable segments | 4 | ||
Percentage of Revenue attributable to a Single Customer | 10.50% | 9.10% | 9.20% |
Segment Information - Revenue by Product Category, Net of Intercompany Balances (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Revenue from External Customer [Line Items] | |||
Revenue | $ 2,405.4 | $ 2,485.6 | $ 2,654.6 |
Pumps and Complementary Products | |||
Revenue from External Customer [Line Items] | |||
Revenue | 745.1 | 1,025.9 | 1,112.3 |
Pump Support and Maintenance Services | |||
Revenue from External Customer [Line Items] | |||
Revenue | 84.7 | 87.8 | 96.0 |
Brake component products | |||
Revenue from External Customer [Line Items] | |||
Revenue | 873.4 | 656.7 | 647.9 |
Shock Absorber Equipment | |||
Revenue from External Customer [Line Items] | |||
Revenue | 109.6 | 110.2 | 121.3 |
Connectors Equipment | |||
Revenue from External Customer [Line Items] | |||
Revenue | 309.1 | 327.9 | 392.3 |
CT Aerospace Products | |||
Revenue from External Customer [Line Items] | |||
Revenue | 220.8 | 210.7 | 199.5 |
CT Industrial Products | |||
Revenue from External Customer [Line Items] | |||
Revenue | $ 62.7 | $ 66.4 | $ 85.3 |
Income Taxes - Income Tax Data from Continuing Operations (Detail) - USD ($) $ in Millions |
12 Months Ended | ||||||||
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Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2014 |
Dec. 31, 2014 |
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Income (loss) components: | |||||||||
United States | $ 87.5 | $ 159.3 | $ 44.5 | ||||||
International | 170.9 | 223.0 | 217.5 | ||||||
Income from continuing operations before income tax | 258.4 | 382.3 | 262.0 | ||||||
Current income tax expense (benefit): | |||||||||
United States - federal | 4.3 | (8.5) | 16.2 | ||||||
United States - state and local | (0.3) | 0.1 | 0.7 | ||||||
International | 51.1 | 52.9 | 54.6 | ||||||
Total current income tax expense (benefit) | 55.1 | 44.5 | 71.5 | ||||||
Deferred income tax expense (benefit) components: | |||||||||
United States - federal | 26.4 | 31.9 | (0.6) | ||||||
United States - state and local | (2.1) | 6.0 | 5.1 | ||||||
International | (3.4) | (12.3) | (4.7) | ||||||
Total deferred income tax expense (benefit) | 20.9 | 25.6 | (0.2) | ||||||
Income tax expense (benefit) | $ 76.0 | $ 70.1 | $ 71.3 | ||||||
Effective income tax rate | 29.40% | 29.40% | 18.30% | 18.30% | 27.20% | 27.20% |
Income Taxes - Reconciliation of Tax Provision for Continuing Operations (Detail) |
12 Months Ended | |||||
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Dec. 31, 2016 |
Dec. 31, 2016
Rate
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Dec. 31, 2015 |
Dec. 31, 2015
Rate
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Dec. 31, 2014 |
Dec. 31, 2014
Rate
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Income Tax Disclosure [Abstract] | ||||||
Tax provision at U.S. statutory rate | 35.00% | 35.00% | 35.00% | |||
Tax exempt interest | (5.20%) | (6.70%) | (10.30%) | |||
Audit settlements & unrecognized tax benefits | (5.20%) | (5.00%) | 0.90% | |||
Tax on undistributed foreign earnings | 4.90% | (5.60%) | (8.10%) | |||
U.S. tax on foreign earnings | 4.70% | 3.80% | 9.30% | |||
Foreign tax rate differential | (3.50%) | (3.60%) | (6.20%) | |||
U.S. permanent items | (1.90%) | (1.00%) | (1.00%) | |||
Valuation allowance on deferred tax assets | 1.40% | 2.10% | 8.60% | |||
Other adjustments | (0.70%) | (0.60%) | (1.30%) | |||
State and local income tax | (0.10%) | 1.00% | 1.60% | |||
Foreign tax holiday | 0.00% | (1.10%) | (1.30%) | |||
Effective income tax rate | 29.40% | 29.40% | 18.30% | 18.30% | 27.20% | 27.20% |
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Deferred Tax Assets: | ||||
Asbestos | $ 209.8 | $ 228.7 | ||
Loss carryforwards | 112.3 | 125.1 | ||
Employee benefits | 98.9 | 110.4 | ||
Accruals | 74.8 | 88.0 | ||
Credit carryforwards | 50.7 | 34.5 | ||
Other | 21.2 | 15.5 | ||
Gross deferred tax assets | 567.7 | 602.2 | ||
Less: Valuation allowance | 113.3 | 135.7 | $ 147.1 | $ 135.3 |
Net deferred tax assets | 454.4 | 466.5 | ||
Deferred Tax Liabilities: | ||||
Intangibles | (68.3) | (70.8) | ||
Undistributed earnings | (52.3) | (39.6) | ||
Accelerated depreciation | (36.5) | (31.0) | ||
Investment | (0.4) | (0.5) | ||
Total deferred tax liabilities | (157.5) | (141.9) | ||
Net deferred tax assets | $ 296.9 | $ 324.6 |
Income Taxes - Deferred Taxes in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Income Tax Disclosure [Abstract] | ||
Non-current assets | $ 297.4 | $ 326.1 |
Other non-current liabilities | (0.5) | (1.5) |
Net deferred tax assets | $ 296.9 | $ 324.6 |
Income Taxes - Attributes Available for Utilization (Detail) $ in Millions |
12 Months Ended |
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Dec. 31, 2016
USD ($)
| |
U.S. federal net operating losses [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 4.6 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2033 |
U.S. state net operating losses [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 1,322.7 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2017 |
U.S. federal tax credits [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 44.7 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2021 |
U.S. state tax credits [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 6.0 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2027 |
Foreign net operating losses [Member] | |
Operating Loss Carryforwards [Line Items] | |
Attribute amount | $ 251.4 |
Deferred Tax Asset Attributes, First Year of Expiration | Dec. 31, 2017 |
Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits - January 1 | $ 87.6 | $ 160.1 | $ 161.2 |
Additions for: | |||
Current year tax positions | 1.2 | 3.4 | 2.8 |
Prior year tax positions | 0.2 | 1.8 | 2.4 |
Assumed in acquisition | 0.2 | 1.9 | 0.0 |
Reductions for: | |||
Prior year tax positions | (3.8) | (56.6) | (2.8) |
Settlements | (10.9) | (19.0) | (1.0) |
Lapse of statute | (5.0) | (4.0) | (2.5) |
Unrecognized tax benefits - December 31 | $ 69.5 | $ 87.6 | $ 160.1 |
Earnings Per Share - Basic and Diluted Loss Per Share (Detail) - shares shares in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Earnings Per Share [Abstract] | |||
Basic weighted average common shares outstanding | 89.2 | 89.8 | 91.5 |
Add: Dilutive impact of outstanding equity awards | 0.7 | 0.9 | 1.3 |
Diluted weighted average common shares outstanding | 89.9 | 90.7 | 92.8 |
Earnings Per Share - Number of Shares Underlying Stock Options Excluded from Computation of Diluted Loss (Detail) - $ / shares shares in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive stock options | 0.7 | 0.4 | 0.2 |
Average exercise price | $ 38.34 | $ 42.50 | $ 43.51 |
Performance Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive stock options | 0.1 | ||
Minimum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Year(s) of expiration | 2024 | 2024 | 2024 |
Maximum [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Year(s) of expiration | 2026 | 2025 | 2024 |
Receivables, Net - Receivables, Net (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
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Receivables [Abstract] | ||||
Trade accounts receivable | $ 513.5 | $ 554.0 | ||
Notes receivable | 4.2 | 3.9 | ||
Other | 21.6 | 43.1 | ||
Receivables, gross | 539.3 | 601.0 | ||
Less: allowance for doubtful accounts | 15.4 | 16.1 | $ 13.3 | $ 12.6 |
Receivables, net | $ 523.9 | $ 584.9 |
Receivables, Net - Rollforward of Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Allowance for doubtful accounts - January 1 | $ 16.1 | $ 13.3 | $ 12.6 |
Charges to income | 1.5 | 3.6 | 4.0 |
Write-offs | (1.5) | (0.8) | (1.6) |
Foreign currency and other | (0.7) | 0.0 | (1.7) |
Allowance for doubtful accounts - December 31 | $ 15.4 | $ 16.1 | $ 13.3 |
Inventories, Net - Components of Inventories, Net (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Inventory Disclosure [Abstract] | ||
Finished goods | $ 53.0 | $ 60.9 |
Work in process | 60.5 | 56.0 |
Raw materials | 166.0 | 162.9 |
Inventoried costs related to long-term contracts | 33.5 | 43.0 |
Total inventory before progress payments | 313.0 | 322.8 |
Less - progress payments | (17.8) | (30.1) |
Inventories, net | $ 295.2 | $ 292.7 |
Other Current and Non-Current Assets - Components of Other Current and Non-Current Assets (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Asbestos-related current assets | $ 66.0 | $ 74.5 |
Prepaid Taxes | 7.6 | 14.3 |
Short-term investments | 0.0 | 64.9 |
Other | 48.4 | 50.7 |
Other current assets | 122.0 | 204.4 |
Other employee benefit-related assets | 96.5 | 92.9 |
Capitalized software costs | 38.1 | 28.2 |
Environmental related assets | 33.4 | 10.8 |
Equity method investments | 5.6 | 5.6 |
Other | 14.8 | 15.8 |
Other non-current assets | $ 188.4 | $ 153.3 |
Plant, Property and Equipment, Net - Components of Plant, Property and Equipment, Net (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Property, Plant and Equipment [Abstract] | ||
Land and improvements | $ 28.2 | $ 25.4 |
Machinery and equipment | 898.6 | 909.3 |
Buildings and improvements | 244.6 | 242.0 |
Furniture, fixtures and office equipment | 68.0 | 66.3 |
Construction work in progress | 68.5 | 42.3 |
Other | 5.3 | 6.7 |
Plant, property and equipment, gross | 1,313.2 | 1,292.0 |
Less - accumulated depreciation | (848.7) | (848.5) |
Plant, property and equipment, net | $ 464.5 | $ 443.5 |
Plant, Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 74.1 | $ 70.7 | $ 72.9 |
Goodwill and Other Intangible Assets, Net - Estimated Amortization Expense Related to Intangible Assets (Detail) $ in Millions |
Dec. 31, 2016
USD ($)
|
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Goodwill and Intangible Assets Disclosure [Abstract] | |
2017 | $ 18.1 |
2018 | 16.7 |
2019 | 16.6 |
2020 | 16.5 |
2021 | 16.4 |
Thereafter | $ 49.3 |
Goodwill and Other Intangible Assets, Net Goodwill Textuals (Details) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended |
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Sep. 30, 2016 |
Dec. 31, 2015 |
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Goodwill [Line Items] | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4.1 | |
Goodwill Written off Related to Sale of Business | $ 2.7 | |
Control Technologies [Member] | ||
Goodwill [Line Items] | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | 1.8 | |
Goodwill Written off Related to Sale of Business | 2.7 | |
Gain on Sale of Assets | $ 0.1 |
Other Intangible Assets Textuals (Detail) - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | ||
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Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 4.1 | |||
Amortization expense related to finite-lived intangible assets | $ 20.1 | $ 14.0 | $ 11.1 | |
Customer relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average period (in years) | 12 years 8 months 12 days | |||
Proprietary technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average period (in years) | 13 years 7 months 6 days | |||
Patents and Other [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average period (in years) | 9 years 3 months 18 days | |||
Control Technologies [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 1.8 |
Accrued Liabilities and Other Non-Current Liabilities - Accrued Liabilities and Other Non-Current Liabilities, Net (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Payables and Accruals [Abstract] | ||
Compensation and other employee-related benefits | $ 120.5 | $ 138.6 |
Asbestos-related liability | 76.8 | 88.0 |
Customer-related liabilities | 39.9 | 38.0 |
Accrued income taxes and other tax-related liabilities | 31.0 | 30.9 |
Environmental and other legal matters | 25.1 | 24.0 |
Accrued warranty costs | 17.4 | 21.7 |
Other accrued liabilities | 39.5 | 51.5 |
Accrued and other current liabilities | 350.2 | 392.7 |
Environmental liabilities | 63.2 | 72.0 |
Compensation and other employee-related benefits | 33.0 | 35.6 |
Deferred income taxes and other tax-related liabilities | 24.9 | 44.5 |
Other | 59.9 | 37.8 |
Other non-current liabilities | $ 181.0 | $ 189.9 |
Leases and Rentals - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
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Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
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Leases [Abstract] | |||
Rental expenses under operating leases | $ 21.1 | $ 18.6 | $ 18.7 |
Leases and Rentals - Future Minimum Operating Lease Payments Under Non-Cancellable Operating Leases (Detail) $ in Millions |
Dec. 31, 2016
USD ($)
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Leases [Abstract] | |
2017 | $ 22.8 |
2018 | 21.0 |
2019 | 18.4 |
2020 | 16.1 |
2021 | 15.4 |
2022 and thereafter | 63.0 |
Total minimum lease payments | $ 156.7 |
Debt - Outstanding Debt (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Debt Disclosure [Abstract] | ||
Commercial Paper | $ 113.5 | $ 94.5 |
Short-term loans | 100.0 | 150.0 |
Current maturities of long-term debt | 0.6 | 0.7 |
Current capital leases | 0.2 | 0.5 |
Short-term loans and current maturities of long-term debt | 214.3 | 245.7 |
Non-current maturities of long-term debt | 1.8 | 2.3 |
Non-current capital leases | 0.2 | 0.5 |
Long-term debt and capital leases | 2.0 | 2.8 |
Total debt and capital leases | $ 216.3 | $ 248.5 |
Postretirement Benefit Plans - Amount Recognized in Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
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Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 213.6 | $ 235.5 |
Prior service cost (benefit) | (45.4) | (51.8) |
Total | 168.2 | 183.7 |
Pension [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 154.0 | 168.9 |
Prior service cost (benefit) | 5.1 | 5.6 |
Total | 159.1 | 174.5 |
Other Postretirement Benefit Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 59.6 | 66.6 |
Prior service cost (benefit) | (50.5) | (57.4) |
Total | $ 9.1 | $ 9.2 |
Postretirement Benefit Plans - Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans (Detail) - USD ($) $ in Millions |
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Change in benefit obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | $ 561.3 | $ 546.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 6.3 | 5.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 18.3 | 19.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendments | 0.4 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 8.2 | (10.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and expenses paid | (32.7) | (29.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired | 0.0 | 37.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement(a) | (26.6) | [1] | (1.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | (0.2) | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | (2.1) | (8.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – December 31 | 531.0 | 561.3 | $ 546.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Pension Plans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | 339.9 | 324.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 4.1 | 3.5 | 3.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 11.9 | 13.0 | 13.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendments | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 5.9 | (14.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and expenses paid | (21.5) | (18.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired | 0.0 | 32.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement(a) | (28.0) | [1] | 0.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – December 31 | 312.3 | 339.9 | 324.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | 78.0 | 87.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 1.3 | 1.5 | 1.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 1.5 | 1.5 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendments | 0.4 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | 4.2 | (2.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and expenses paid | (2.7) | (2.7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired | 0.0 | 2.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement(a) | (0.5) | (1.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | (0.2) | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | (2.1) | (8.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – December 31 | 79.9 | 78.0 | 87.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – January 1 | 143.4 | 134.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | 0.9 | 0.9 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest cost | 4.9 | 5.0 | 7.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amendments | 0.0 | 0.0 | [2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actuarial loss (gain) | (1.9) | 7.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefits and expenses paid | (8.5) | (7.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired | 0.0 | 1.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Settlement(a) | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Curtailment | 0.0 | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation | 0.0 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Benefit obligation – December 31 | $ 138.8 | $ 143.4 | $ 134.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Postretirement Benefit Plans - Changes in Fair Value of Plan Assets of Pension and Other Employee-Related Defined Benefit Plans (Detail) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Change in plan assets | |||||
Plan assets - January 1 | $ 286.9 | $ 283.4 | |||
Actual return on plan assets | 24.5 | (7.9) | |||
Employer contributions | 19.0 | 18.6 | |||
Benefits and expenses paid | (32.7) | (29.1) | |||
Acquired | 0.0 | 23.1 | |||
Settlement(a) | (28.5) | (1.1) | |||
Foreign currency translation | 0.0 | (0.1) | |||
Plan assets - December 31 | 269.2 | 286.9 | |||
Funded status at end of year | (261.8) | (274.4) | |||
U.S. Pension Plans [Member] | |||||
Change in plan assets | |||||
Plan assets - January 1 | 278.1 | 272.9 | |||
Actual return on plan assets | 24.0 | (8.0) | |||
Employer contributions | 9.6 | 8.6 | |||
Benefits and expenses paid | (21.5) | (18.5) | |||
Acquired | 0.0 | 23.1 | |||
Settlement(a) | (28.0) | [1] | 0.0 | ||
Foreign currency translation | 0.0 | 0.0 | |||
Plan assets - December 31 | 262.2 | 278.1 | |||
Funded status at end of year | (50.1) | (61.8) | |||
International Pension Plan [Member] | |||||
Change in plan assets | |||||
Plan assets - January 1 | 0.9 | 1.0 | |||
Actual return on plan assets | 0.0 | 0.0 | |||
Employer contributions | 3.2 | 3.8 | |||
Benefits and expenses paid | (2.7) | (2.7) | |||
Acquired | 0.0 | 0.0 | |||
Settlement(a) | (0.5) | (1.1) | |||
Foreign currency translation | 0.0 | (0.1) | |||
Plan assets - December 31 | 0.9 | 0.9 | |||
Funded status at end of year | (79.0) | (77.1) | |||
Other Postretirement Benefit Plan [Member] | |||||
Change in plan assets | |||||
Plan assets - January 1 | 7.9 | 9.5 | |||
Actual return on plan assets | 0.5 | 0.1 | |||
Employer contributions | 6.2 | 6.2 | |||
Benefits and expenses paid | (8.5) | (7.9) | |||
Acquired | 0.0 | 0.0 | |||
Settlement(a) | 0.0 | 0.0 | |||
Foreign currency translation | 0.0 | 0.0 | |||
Plan assets - December 31 | 6.1 | 7.9 | |||
Funded status at end of year | $ (132.7) | $ (135.5) | |||
|
Postretirement Benefit Plans - Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Postemployment Benefits [Abstract] | ||
Projected benefit obligation | $ 391.6 | $ 417.9 |
Accumulated benefit obligation | 388.8 | 415.4 |
Fair value of plan assets | $ 262.2 | $ 279.0 |
Postretirement Benefit Plans - Net Loss and Prior Service Cost that will be Amortized from Accumulated Other Comprehensive Income Loss (Detail) $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 11.0 |
Prior service cost (credit) | (4.9) |
Total | 6.1 |
Pension [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 6.8 |
Prior service cost (credit) | 0.9 |
Total | 7.7 |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 4.2 |
Prior service cost (credit) | (5.8) |
Total | $ (1.6) |
Postretirement Benefit Plans - Weighted-Average Assumptions used to Determine Benefit Obligations (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Cost Assumptions: | |||
Expected return on plan assets | 7.20% | 8.00% | 8.00% |
U.S. Pension Plans [Member] | |||
Obligation Assumptions: | |||
Discount rate | 4.20% | 4.30% | |
Cost Assumptions: | |||
Discount rate | 4.30% | 4.00% | |
Expected return on plan assets | 7.20% | 8.00% | |
International Pension Plan [Member] | |||
Obligation Assumptions: | |||
Discount rate | 1.70% | 2.30% | |
Rate of future compensation increase | 3.40% | 3.40% | |
Cost Assumptions: | |||
Discount rate | 2.30% | 1.90% | |
Expected return on plan assets | 4.80% | 4.80% | |
Other Postretirement Benefit Plan [Member] | |||
Obligation Assumptions: | |||
Discount rate | 4.10% | 4.10% | |
Cost Assumptions: | |||
Discount rate | 4.10% | 3.80% | |
Expected return on plan assets | 7.20% | 8.00% |
Postretirement Benefit Plans - Actual Versus Expected Long-Term Returns for Our Domestic Pension Plans (Detail) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Postemployment Benefits [Abstract] | |||
Expected rate of return on plan assets | 7.20% | 8.00% | 8.00% |
Actual rate of return on plan assets | 9.20% | (2.80%) | 8.60% |
Postretirement Benefit Plans - Asset Allocation Range (Detail) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 26.00% | 31.00% |
Minimum range | 20.00% | |
Maximum range | 35.00% | |
International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 22.00% | 24.00% |
Minimum range | 10.00% | |
Maximum range | 35.00% | |
Fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 51.00% | 43.00% |
Minimum range | 40.00% | |
Maximum range | 75.00% | |
Cash and other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual allocation | 1.00% | 2.00% |
Minimum range | 0.00% | |
Maximum range | 5.00% |
Postretirement Benefit Plans - Fair Value of Plan Assets Held by Our Postretirement Benefits Plans (Detail) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | $ 269.2 | $ 286.9 | $ 283.4 |
Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 263.1 | 279.0 | |
Pension [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 67.4 | 85.8 | |
Pension [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 58.9 | 65.2 | |
Pension [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 135.0 | 121.1 | |
Pension [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 4.0 | ||
Pension [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Pension [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 1.8 | 2.9 | |
Pension [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 1.8 | 2.9 | |
Pension [Member] | Level 1 [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Pension [Member] | Level 1 [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Pension [Member] | Level 1 [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Pension [Member] | Level 1 [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Pension [Member] | Level 1 [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Pension [Member] | Level 1 [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 1.8 | 2.9 | |
Pension [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 4.0 | ||
Pension [Member] | Level 3 [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Pension [Member] | Level 3 [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Pension [Member] | Level 3 [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Pension [Member] | Level 3 [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 4.0 | ||
Pension [Member] | Level 3 [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Pension [Member] | Level 3 [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Other Postretirement Benefit Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 6.1 | 7.9 | $ 9.5 |
Other Postretirement Benefit Plan [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Other Postretirement Benefit Plan [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Other Postretirement Benefit Plan [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Other Postretirement Benefit Plan [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Other Postretirement Benefit Plan [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 6.1 | 7.9 | |
Other Postretirement Benefit Plan [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 6.1 | 7.9 | |
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 6.1 | 7.9 | |
Other Postretirement Benefit Plan [Member] | Level 1 [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 261.3 | 272.1 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension [Member] | U.S. [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 67.4 | 85.8 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension [Member] | International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 58.9 | 65.2 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension [Member] | Fixed income [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 135.0 | 121.1 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension [Member] | Hedge Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | ||
Postretirement Assets Measured at Net Asset Value [Member] | Pension [Member] | Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | 0.0 | 0.0 | |
Postretirement Assets Measured at Net Asset Value [Member] | Pension [Member] | Cash and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan asset | $ 0.0 | $ 0.0 |
Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
U.S. Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2017 | $ 20.0 |
2018 | 20.3 |
2019 | 20.5 |
2020 | 20.6 |
2021 | 20.8 |
2022 - 2026 | 100.9 |
International Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2017 | 3.2 |
2018 | 3.3 |
2019 | 3.1 |
2020 | 3.9 |
2021 | 3.2 |
2022 - 2026 | 16.6 |
Other Postretirement Benefit Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2017 | 11.7 |
2018 | 11.3 |
2019 | 10.9 |
2020 | 10.6 |
2021 | 10.2 |
2022 - 2026 | $ 43.9 |
Postretirement Benefit Plans - Additional Information (Detail) shares in Millions, $ in Millions |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
Employees
Participant
shares
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Company contributions to defined contribution plans | $ 17.3 | $ 18.4 | $ 17.3 | ||||||
Shares of ITT Stock Held in Defined Contribution Plan | shares | 0.2 | ||||||||
Active participants in numerous defined benefit pension plans | Participant | 2,100 | ||||||||
Accumulated benefit obligation | $ 389.4 | 415.4 | |||||||
Number of Employees Offered a Pension Settlement | Employees | 1,100 | ||||||||
Defined Benefit Plan, Settlements, Plan Assets | $ 28.5 | 1.1 | |||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 26.6 | [1] | $ 1.1 | ||||||
Assumed rate of future decrease in per capita cost of health care for 2021 | 4.50% | ||||||||
Effect of one percent increase on benefit obligation | $ 7.4 | ||||||||
Effect of one percent increase on annual service and interest cost components | 0.3 | ||||||||
Effect of one percent decrease on benefit obligation | 6.3 | ||||||||
Effect of one percent decrease on annual service and interest cost components | $ 0.3 | ||||||||
Reduction to Investment Target Allocation for Fixed Income | 15.00% | ||||||||
Long-term annual rate of return for domestic pension plans | 7.20% | 8.00% | 8.00% | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-Term Return on Assets, Estimate for Next Year | 7.00% | ||||||||
Contributions to postretirement plans | $ 19.0 | $ 18.6 | $ 12.6 | ||||||
Employer contributions | $ 19.0 | 18.6 | |||||||
Consolidated Hourly Pension Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Projected Benefit Obligation | 41.00% | ||||||||
Other Non Qualified Us Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Projected Benefit Obligation | 4.00% | ||||||||
Pension Plan For Bargaining Unit Employees Seneca Falls [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Projected Benefit Obligation | 35.00% | ||||||||
International Pension Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Projected Benefit Obligation | 20.00% | ||||||||
Effect of settlement, curtailment, or special termination benefit(a) | $ 0.0 | 0.1 | 0.4 | ||||||
Defined Benefit Plan, Settlements, Plan Assets | 0.5 | 1.1 | |||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 0.5 | $ 1.1 | |||||||
Long-term annual rate of return for domestic pension plans | 4.80% | 4.80% | |||||||
Employer contributions | $ 3.2 | $ 3.8 | |||||||
Other Postretirement Benefit Plan [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Effect of settlement, curtailment, or special termination benefit(a) | 0.0 | (4.2) | [2] | 0.0 | |||||
Defined Benefit Plan, Settlements, Plan Assets | 0.0 | 0.0 | |||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 0.0 | $ 0.0 | |||||||
Long-term annual rate of return for domestic pension plans | 7.20% | 8.00% | |||||||
Defined Benefit Plan, Expected Employer Contributions Next Fiscal Year | $ 9.0 | ||||||||
Employer contributions | 6.2 | $ 6.2 | |||||||
U.S. Pension Plans [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Effect of settlement, curtailment, or special termination benefit(a) | 12.7 | [1] | 0.0 | 0.0 | |||||
Defined Benefit Plan, Settlements, Plan Assets | 28.0 | [1] | 0.0 | ||||||
Defined Benefit Plan, Settlements, Benefit Obligation | $ 28.0 | [1] | $ 0.0 | ||||||
Long-term annual rate of return for domestic pension plans | 7.20% | 8.00% | |||||||
Employer contributions | $ 9.6 | $ 8.6 | |||||||
Actuarial Loss on Pension Settlement [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Defined Benefit Plan, Settlements, Benefit Obligation | [1] | $ 1.4 | |||||||
Pre-age 65 retirees [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Assumed rate of future increase in per capita cost of health care for 2013 | 7.50% | ||||||||
Post-age 65 retirees [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Assumed rate of future increase in per capita cost of health care for 2013 | 7.00% | ||||||||
Pension [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Effect of settlement, curtailment, or special termination benefit(a) | $ 12.7 | 0.1 | $ 0.4 | ||||||
Contributions to postretirement plans | 12.8 | 12.4 | |||||||
Discretionary Pension Contribution | 7.8 | $ 7.5 | |||||||
Defined Benefit Plan, Expected Employer Contributions Next Fiscal Year | $ 4.0 | ||||||||
|
Long-Term Incentive Employee Compensation Long-Term Incentive Employee Compensation Costs (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Share-based compensation expense, equity-based awards | $ 12.6 | $ 15.7 | $ 14.0 |
Share-based compensation expense, liability-based awards | 1.8 | 1.1 | 3.1 |
Total share-based compensation expense in operating income (loss) | $ 14.4 | $ 16.8 | $ 17.1 |
Long-Term Incentive Employee Compensation Rollforward of Outstanding Stock Options (Detail) - $ / shares shares in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Shares | |||
Beginning Balance, Shares | 1.7 | 1.9 | 2.7 |
Stock Options Granted, Shares | 0.4 | 0.2 | 0.2 |
Stock Options Exercised, Shares | (0.6) | (0.3) | (0.8) |
Stock Options Canceled or Expired, Shares | (0.1) | (0.1) | (0.2) |
Stock Options Outstanding at the end of Year, Shares | 1.4 | 1.7 | 1.9 |
Stock Options Exercisable at the end of year, Shares | 0.8 | 1.1 | 1.1 |
Weighted Average Exercise Price | |||
Beginning Balance, Weighted Average Exercise Price | $ 27.10 | $ 24.20 | $ 20.46 |
Stock Options Granted, Weighted Average Exercise Price | 33.01 | 41.52 | 43.52 |
Stock Options Exercised, Weighted Average Exercise Price | 20.88 | 19.87 | 17.67 |
Stock Options Canceled or Expired, Weighted Average Exercise Price | 39.03 | 35.95 | 24.46 |
Outstanding, Weighted Average Exercise Price | 30.57 | 27.10 | 24.20 |
Stock Options Exercisable at the end of year, Weighted Average Exercise Price | $ 24.41 | $ 21.75 | $ 20.26 |
Long-Term Incentive Employee Compensation Summary of Stock Options by Exercise Price (Detail) - USD ($) shares in Millions, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 1.4 | 1.7 | 1.9 | 2.7 |
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 7 years 9 months 18 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 13.1 | |||
Options Exercisable Number | 0.8 | 1.1 | 1.1 | |
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 6 years 4 months 24 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 11.1 | |||
$19.79 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.1 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 4 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 0.6 | |||
Options Exercisable Number | 0.1 | |||
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 4 years 2 months 12 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 0.6 | |||
$20.28 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.2 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 5 years 10 months 24 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 3.7 | |||
Options Exercisable Number | 0.2 | |||
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 5 years 10 months 24 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 3.7 | |||
$21.53 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.1 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 5 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 0.7 | |||
Options Exercisable Number | 0.1 | |||
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 5 years 2 months 12 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 0.7 | |||
$22.80 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.2 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 6 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 3.6 | |||
Options Exercisable Number | 0.2 | |||
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 6 years 2 months 12 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 3.6 | |||
$26.76 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.2 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 7 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 2.5 | |||
Options Exercisable Number | 0.2 | |||
Options Exercisable Weighted-Average Remaining Contractual Life (In Years) | 7 years 2 months 12 days | |||
Options Exercisable Aggregate Intrinsic Value | $ 2.5 | |||
$33.01 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.3 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 10 years 1 month 6 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 2.0 | |||
Options Exercisable Number | 0.0 | |||
$41.52 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.2 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 9 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 0.0 | |||
Options Exercisable Number | 0.0 | |||
$43.52 Exercise Price | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding Number | 0.1 | |||
Options Outstanding Weighted-Average Remaining Contractual Life (In Years) | 8 years 2 months 12 days | |||
Options Outstanding Aggregate Intrinsic Value | $ 0.0 | |||
Options Exercisable Number | 0.0 |
Long-Term Incentive Employee Compensation Stock Option Grant Date Fair Value Weighted Average Assumptions (Detail) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.50% | 1.10% | 1.00% |
Expected volatility | 32.20% | 29.40% | 29.60% |
Expected life | 6 years | 5 years 9 months 18 days | 5 years 9 months 18 days |
Risk-free rates | 1.50% | 1.70% | 1.80% |
Weighted-average grant date fair value | $ 9.16 | $ 11.23 | $ 11.93 |
Long-Term Incentive Employee Compensation Rollforward of Outstanding Restricted Stock (Detail) - RSUs, PSUs and RSAs [Member] - $ / shares shares in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||||||
Beginning Outstanding, shares | 1.3 | 1.1 | 1.3 | ||||
Granted , shares | 0.5 | 0.5 | 0.4 | ||||
Performance Adjustment, shares | (0.1) | [1] | 0.1 | [1] | 0.0 | ||
Lapsed, shares | (0.5) | (0.3) | (0.5) | ||||
Cancelled, shares | (0.1) | (0.1) | (0.1) | ||||
Ending Outstanding, shares | 1.1 | 1.3 | 1.1 | ||||
Performance Units Vested Not Yet Issued | 0.0 | 0.3 | 0.0 | ||||
Outstanding, Weighted Average Grant Date Fair Value | $ 36.56 | $ 31.70 | $ 24.17 | ||||
Granted, Weighted Average Grant Date Fair Value | 33.28 | 41.34 | 43.88 | ||||
Performance Adjustment, Weighted Average Grant Date Fair Value | 45.47 | 29.59 | 0 | ||||
Lapsed, Weighted Average Grant Date Fair Value | 29.86 | 24.09 | 21.62 | ||||
Canceled, Weighted Average Grant Date Fair Value | 39.20 | 35.89 | 27.33 | ||||
Outstanding, Weighted Average Grant Date Fair Value | 38.24 | 36.56 | 31.70 | ||||
Weighted Average Grant Date Fair Value of Performance Units Vested Not Yet Issued | $ 0 | $ 29.59 | $ 0 | ||||
|
Long-Term Incentive Employee Compensation Outstanding RSUs, Cash Settled RSUs and PSUs (Detail) - shares shares in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Equity settled RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity and Cash settled shares | 0.7 | 0.7 | 0.7 |
Cash settled RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity and Cash settled shares | 0.1 | 0.1 | 0.1 |
PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity and Cash settled shares | 0.3 | 0.5 | 0.3 |
Long-Term Incentive Employee Compensation Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Feb. 19, 2016 |
Dec. 31, 2013 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares initially available for awards under this Stock Option plan | 4.6 | ||||
Share available for future grant under stock option | 38,500,000 | ||||
Share-based compensation, vesting period | 3 years | ||||
Contractual period | 10 years | ||||
Intrinsic value of options exercised | $ 9.6 | $ 6.6 | $ 22.5 | ||
Cash received from the exercise of stock options | 12.3 | 6.2 | 15.1 | ||
Tax benefit realized from stock option exercises and restricted stock lapses | 10.5 | 6.3 | 15.1 | ||
Excess Tax benefit from stock activity | $ 3.2 | $ 3.4 | $ 10.4 | ||
Options Outstanding Number | 1,400,000 | 1,700,000 | 1,900,000 | 2,700,000 | |
Total number of stock option expected to vest | 1,400,000 | ||||
Weighted average price of stock options expected to vest | $ 30.40 | ||||
Aggregate intrinsic value of stock options expected to vest | $ 12.9 | ||||
Weighted average remaining contractual life stock option expected to vest | 7 years 9 months 18 days | ||||
Dividend yield | 1.50% | 1.10% | 1.00% | ||
Share Price | $ 38.57 | $ 33.01 | |||
Equity Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested options and restricted stock | $ 19.1 | ||||
Unrecognized compensation cost weighted average amortization period (years) | 1 year 9 months 18 days | ||||
Liability Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to unvested options and restricted stock | $ 2.3 | ||||
Unrecognized compensation cost weighted average amortization period (years) | 1 year 9 months 18 days | ||||
RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of shares expected to vest | 700,000 | ||||
PSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total number of shares expected to vest | 100,000 | ||||
TSR Plan Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend yield | 1.50% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend | $ 0.496 | ||||
Share Price | $ 33.01 | ||||
ROIC Award [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Dividend yield | 1.50% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend | $ 0.496 | ||||
Out of the Money Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options Outstanding Number | 0.3 |
Capital Stock - Additional Information (Detail) - USD ($) |
12 Months Ended | 123 Months Ended | |||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2016 |
Oct. 27, 2006 |
|
Class of Stock [Line Items] | |||||
Aggregate common stock and preferred stock authorized | 300,000,000 | 300,000,000 | |||
Common stock, authorized | 250,000,000 | 250,000,000 | 250,000,000 | ||
Common stock, par value | $ 1 | $ 1.00 | $ 1 | ||
Preferred Stock, authorized | 50,000,000 | 50,000,000 | |||
Preferred Stock, outstanding | 0 | 0 | 0 | ||
Dividends declared per common share | $ 0.496 | $ 0.4732 | $ 0.44 | ||
Share repurchase program | $ 1,000,000,000 | ||||
Shares purchased under share repurchase program | 2,000,000.0 | 2,000,000.0 | 1,100,000 | 20,400,000 | |
Cost of shares repurchased under share repurchase program | $ 70,000,000.0 | $ 80,000,000.0 | $ 50,000,000.0 | $ 829,400,000 | |
Number of share repurchased under settlement of employee tax withholding obligations | 200,000 | 100,000 | 200,000 | ||
Shares repurchased aggregate value under settlement of employee tax withholding obligations | $ 7,800,000 | $ 4,000,000.0 | $ 10,200,000 | ||
Treasury Stock, Shares, Retired | 15.0 | ||||
Common Stock held in treasury account | 15,000,000.0 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Shares purchased under share repurchase program | 2,200,000 | 2,100,000 | 1,400,000 | ||
Cost of shares repurchased under share repurchase program | $ 2,200,000 | $ 2,100,000 | $ 1,400,000 | ||
Activity from stock incentive plans | 1,100,000 | 600,000 | 1,400,000 |
Commitments and Contingencies - Activity Related to Asbestos Claims (Detail) - Asbestos Related Matters [Member] - Claim Claim in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
Number of Pending Claims [Roll Forward] | |||||
Pending claims - Beginning | 37 | 62 | 79 | ||
New claims | 4 | 4 | 4 | ||
Settlements | (1) | (1) | (2) | ||
Dismissals | [1] | (10) | (28) | (19) | |
Pending claims - Ending | 30 | 37 | 62 | ||
Inactive [Member] | |||||
Number of Pending Claims [Roll Forward] | |||||
Pending claims - Beginning | 0 | 13 | |||
Pending claims - Ending | 0 | 0 | 13 | ||
Active [Member] | |||||
Number of Pending Claims [Roll Forward] | |||||
Pending claims - Beginning | 37 | 49 | |||
Pending claims - Ending | 30 | 37 | 49 | ||
|
Commitments and Contingencies - Summary of Net Asbestos Charges (Detail) - Asbestos Related Matters [Member] - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Asbestos Related Contingencies [Line Items] | |||
Asbestos provision | $ 59.0 | $ 63.0 | |
Asbestos remeasurement, net | (81.8) | (44.8) | |
Change in Defense Cost Estimate for Asbestos Matters | 4.9 | 100.7 | |
Settlement Agreement | (2.1) | 8.9 | |
Continuing Operations [Member] | |||
Asbestos Related Contingencies [Line Items] | |||
Asbestos provision | 59.0 | 63.0 | $ 64.9 |
Asbestos remeasurement, net | (81.8) | (44.8) | (58.8) |
Change in Defense Cost Estimate for Asbestos Matters | (4.9) | (100.7) | 0.0 |
Settlement Agreement | 2.1 | (8.9) | (2.2) |
Net asbestos charge | $ (25.6) | $ (91.4) | $ 3.9 |
Commitments and Contingencies - Roll forward of Asbestos Liability and Related Assets (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Changes in estimate during the period: | ||
Asbestos-related liability | $ 76.8 | $ 88.0 |
Asbestos-related current assets | 66.0 | 74.5 |
Noncurrent portion | 877.5 | 954.8 |
Noncurrent Asbestos Related Assets | 314.6 | 337.5 |
Asbestos Related Matters [Member] | ||
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||
Net Balance, Beginning | 630.8 | 746.8 |
Changes in estimate during the period: | ||
Continuing operations | (59.0) | (63.0) |
Asbestos remeasurement | (81.8) | (44.8) |
Settlement Agreement | 2.1 | (8.9) |
Change in Defense Cost Estimate for Asbestos Matters | 4.9 | 100.7 |
Net cash activity | (31.5) | (24.6) |
Balance, Ending | 630.8 | |
Estimated asbestos exposure, net of expected recoveries from insurers and other responsible parties | 573.7 | 630.8 |
Asbestos Related Matters [Member] | Liability [Member] | ||
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||
Balance, Beginning | 1,042.8 | 1,223.2 |
Changes in estimate during the period: | ||
Continuing operations | (68.8) | (73.3) |
Asbestos remeasurement | (75.9) | (52.7) |
Settlement Agreement | 0.0 | |
Change in Defense Cost Estimate for Asbestos Matters | 4.9 | 124.2 |
Net cash activity | (76.5) | (76.8) |
Balance, Ending | 954.3 | 1,042.8 |
Noncurrent portion | 954.8 | |
Asbestos Related Matters [Member] | Asset [Member] | ||
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||
Balance, Beginning | 412.0 | 476.4 |
Changes in estimate during the period: | ||
Continuing operations | 9.8 | 10.3 |
Asbestos remeasurement | (5.9) | 7.9 |
Settlement Agreement | 2.1 | (8.9) |
Change in Defense Cost Estimate for Asbestos Matters | 0.0 | (23.5) |
Net cash activity | 45.0 | 52.2 |
Balance, Ending | $ 380.6 | $ 412.0 |
Commitments and Contingencies - Additional Information (Detail) Claim in Thousands, $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
Claim
|
Dec. 31, 2015
USD ($)
Claim
|
Dec. 31, 2014
USD ($)
Claim
|
Dec. 31, 2013
Claim
|
|
Other Commitments [Line Items] | ||||
Environmental related assets | $ 33.4 | $ 10.8 | ||
Asbestos-related liability and asset measurement period | 10 years | |||
Asbestos Related Matters [Member] | ||||
Other Commitments [Line Items] | ||||
Outstanding Active Pending Asbestos Claims | Claim | 30 | 37 | 62 | 79 |
Percentage of asbestos liability related to pending claims | 24.00% | |||
Percentage of Estimated Receivable from Insurers with A- or Better Credit Rating | 81.00% | |||
Percentage of Asbestos Asset Related to Coverage in Place Agreements | 46.00% | |||
Benefit from Settlement Agreement with Asbestos Insurers | $ 2.1 | $ (8.9) | $ (2.2) | |
Change in Defense Cost Estimate for Asbestos Matters | 4.9 | 100.7 | ||
Continuing Operations [Member] | Asbestos Related Matters [Member] | ||||
Other Commitments [Line Items] | ||||
Change in Defense Cost Estimate for Asbestos Matters | $ (4.9) | $ (100.7) | $ 0.0 |
Commitments and Contingencies - Rollforward of Environmental Liability and Related Assets (Detail) - Environmental Related Matters [Member] - Liability [Member] - USD ($) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Environmental Liability and Related Assets [Roll Forward] | ||||
Environmental liability - Beginning balance | $ 82.6 | $ 89.9 | ||
Net cash activity, Liability | (11.9) | (12.1) | ||
Foreign currency, Liability | 0.0 | (0.6) | ||
Environmental liability - Ending balance | 76.6 | 82.6 | ||
Additions [Member] | ||||
Environmental Liability and Related Assets [Roll Forward] | ||||
Continuing operations, Liability | [1] | 6.6 | 11.0 | |
Reversal [Member] | ||||
Environmental Liability and Related Assets [Roll Forward] | ||||
Continuing operations, Liability | $ (0.7) | $ (5.6) | ||
|
Commitments and Contingencies - Range of Environmental Liability and Number of Active Sites for Environmental Matters (Detail) - Environmental Related Matters [Member] $ in Millions |
Dec. 31, 2016
USD ($)
site
|
Dec. 31, 2015
USD ($)
site
|
---|---|---|
Environmental Matters Range Of Estimated Liability And Active Sites Numbers [Line Items] | ||
Number of active environmental investigation and remediation sites | site | 39 | 49 |
Maximum [Member] | ||
Environmental Matters Range Of Estimated Liability And Active Sites Numbers [Line Items] | ||
Possible High End Range of Environmental Liability | $ | $ 127.6 | $ 140.6 |
Commitments and Contingencies Commitments and Contingencies - Environmental Textuals (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Environmental related assets | $ 33.4 | $ 10.8 |
Discontinued Operations [Member] | ||
Accrual for Environmental Loss Contingencies, Increase (Decrease) for Revision in Estimates | 0.7 | (0.9) |
Environmental Issue [Member] | ||
Gross Settlement with Insurance Provider for Environmental Matters | 34.2 | |
Settlement Agreement with Insurer, Amount Received in Cash | 2.0 | |
Settlement Agreement with Insurer, Amount Deposited in Qualified Settlement Fund | 32.2 | |
Settlement Agreement with Insurer, Deferred Income | 23.0 | |
Environmental-Related Receivable from Other Third Parties | 2.0 | |
Environmental related assets | $ 33.4 | $ 10.8 |
Guarantees, Indemnities and Warranties - Additional Information (Detail) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Guarantees [Abstract] | |
Guarantees, letters of credit and similar arrangements outstanding | $ 146.5 |
Guarantees, Indemnities and Warranties - Changes in Product Warranty Accrual (Detail) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Warranty accrual - January 1 | $ 23.5 | $ 29.4 |
Warranty expense | 7.4 | 5.6 |
Payments | (10.1) | (12.3) |
Foreign currency and other | (1.0) | 0.8 |
Warranty accrual - December 31 | $ 19.8 | $ 23.5 |
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations, including tax benefit of $24.5, $4.8, and $0.2, respectively | $ (4.2) | $ (39.4) | $ 3.9 |
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 2.9 | 5.7 | $ (0.8) |
Tax Matters Agreement Receivable, Discontinued Operations | $ 13.2 | ||
Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax Matters Agreement Receivable, Discontinued Operations | 13.2 | ||
Recognition of Previously Unrecognized Tax Position [Member] | Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | 38.3 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 3.2 | ||
Tax Expense from Audit Adjustments [Member] | Discontinued Operations [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Tax Adjustments, Settlements, and Unusual Provisions | $ (17.4) |
Acquisitions Acquisitions (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Oct. 05, 2015 |
Mar. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|---|
Business Acquisition [Line Items] | |||||
Goodwill | $ 774.7 | $ 778.3 | $ 632.1 | ||
Wolverine Advanced Materials Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 8.5 | ||||
Receivables | 31.6 | ||||
Inventory | 35.0 | ||||
Plant, property and equipment | 28.5 | ||||
Goodwill | 164.2 | ||||
Other intangible assets | 86.0 | ||||
Other assets | 10.7 | ||||
Accounts payable and accrued liabilities | (21.2) | ||||
Postretirement liabilities | (14.6) | ||||
Other liabilities | (13.2) | ||||
Net assets acquired | $ 315.5 | ||||
Hartzell Aerospace Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | $ 0.0 | ||||
Receivables | 5.3 | ||||
Inventory | 4.8 | ||||
Plant, property and equipment | 2.6 | ||||
Goodwill | 13.7 | ||||
Other intangible assets | 28.6 | ||||
Other assets | 0.9 | ||||
Accounts payable and accrued liabilities | (3.0) | ||||
Postretirement liabilities | 0.0 | ||||
Other liabilities | 0.0 | ||||
Net assets acquired | $ 52.9 |
Acquisitions Acquisitions Textuals (Details) - USD ($) $ in Millions |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2016 |
Oct. 05, 2015 |
Mar. 31, 2015 |
|
Business Acquisition [Line Items] | |||||
Goodwill | $ 778.3 | $ 632.1 | $ 774.7 | ||
Wolverine Advanced Materials Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | 307.0 | ||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 154.0 | ||||
Goodwill | $ 164.2 | ||||
Hartzell Aerospace Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 52.9 | ||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | 34.0 | ||||
Goodwill | $ 13.7 | ||||
Sales to ITT Corporation [Member] | Wolverine Advanced Materials Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 17.0 |
Subsequent Events Subsequent Events (Details) - Subsequent Event - Acquisition of Axtone [Member] $ in Millions |
1 Months Ended |
---|---|
Jan. 26, 2017
USD ($)
Employees
| |
Subsequent Event [Line Items] | |
Subsequent Event, Date | Jan. 26, 2017 |
Subsequent Event, Description | we completed the acquisition of Axtone Railway Components |
Agreed to Acquisition Purchase Price, Axtone | $ 120.6 |
Estimate of Revenue for Full Year 2016, Axtone | $ 80.0 |
Axtone Number of Employees | Employees | 660 |
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