Nature Of Operations And Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Computation Of Basic And Diluted Earnings Per Share



(in millions, except per share data) For the year ended December 31,	2017		2016		2015
Net income attributable to common shareholders	$	171.8	$	122.8	$	228.9

Weighted average basic shares outstanding	59.4		58.5		58.1
Effect of dilutive stock options	1.0		0.8		0.7
Weighted average diluted shares outstanding	60.4		59.3		58.8

Earnings per basic share	$	2.89	$	2.10	$	3.94
Earnings per diluted share	$	2.84	$	2.07	$	3.89

Summary Of Allowance For Doubtful Accounts

A summary of allowance for doubtful accounts activity follows:



(in millions) December 31,	2017			2016			2015
Balance at beginning of year	$	7.3		$	4.7		$	4.9
Provisions	2.2			6.1			3.0
Deductions	(2.3		)	(3.5		)	(3.2		)
Balance at end of year	$	7.2		$	7.3		$	4.7

Summary Of Inventories

Inventories consist of the following:



(in millions) December 31,	2017		2016
Finished goods	$	101.1	$	97.7
Finished parts and subassemblies	46.1		38.2
Work in process	51.6		56.0
Raw materials	150.5		150.6
Total inventories	$	349.3	$	342.5

Summary Of Property, Plant And Equipment, Net

Property, plant and equipment, net consist of the following:



(in millions) December 31,	2017		2016
Land	$	62.7	$	66.6
Buildings and improvements	183.4		193.5
Machinery and equipment	593.3		566.8
Gross property, plant and equipment	839.4		826.9
Less: accumulated depreciation	557.0		548.0
Property, plant and equipment, net	$	282.4	$	278.9

Schedule Of Changes To Goodwill

Changes to goodwill are as follows:



(in millions)	Fluid Handling			Payment & Merchandising Technologies			Aerospace & Electronics			Engineered Materials			Total
Balance as of December 31, 2015	$	218.7		$	575.2		$	202.6		$	171.4		$	1,167.9
Currency translation	(6.4		)	(11.9		)	(0.3		)	(0.1		)	(18.7		)
Balance at December 31, 2016	$	212.3		$	563.3		$	202.3		$	171.3		$	1,149.2
Additions	22.6			8.9			—			—			31.5
Currency translation	10.5			15.5			0.1			0.1			26.2
Balance as of December 31, 2017	$	245.4		$	587.7		$	202.4		$	171.4		$	1,206.9

For the year ended December 31, 2017, additions to goodwill represent the purchase price allocation related to the April 2017 acquisition of Westlock and the June 2017 acquisition of Microtronic. See discussion in Note 2, "Acquisitions and Divestitures" for further details.

Schedule Of Changes To Intangible Assets

As of December 31, 2017, the Company had $276.8 million of net intangible assets, of which $28.7 million were intangibles with indefinite useful lives, consisting of trade names. Intangibles with indefinite useful lives are tested annually for impairment, or when events or changes in circumstances indicate the potential for impairment. If the carrying amount of an indefinite lived intangible asset exceeds its fair value, the intangible asset is written down to its fair value. Fair value is calculated using relief from royalty method. The Company amortizes the cost of definite-lived intangibles over their estimated useful lives.

In addition to annual testing for impairment of indefinite-lived intangible assets, the Company reviews all of its definite-lived intangible assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Examples of events or changes in circumstances could include, but are not limited to, a prolonged economic downturn, current period operating or cash flow losses combined with a history of losses or a forecast of continuing losses associated with the use of an asset or asset group, or a current expectation that an asset or asset group will be sold or disposed of before the end of its previously estimated useful life. Recoverability is based upon projections of anticipated future undiscounted cash flows associated with the use and eventual disposal of the definite-lived intangible asset (or asset group), as well as specific appraisal in certain instances. Reviews occur at the lowest level for which identifiable cash flows are largely independent of cash flows associated with other long-lived assets or asset groups and include estimated future revenues, gross profit margins, operating profit margins and capital expenditures which are based on the businesses’ strategic plans and long-range planning forecasts, which change from year to year. The revenue growth rates included in the forecasts represent the Company's best estimates based on current and forecasted market conditions, and the profit margin assumptions are based on the current cost structure and anticipated net cost increases/reductions. There are inherent uncertainties related to these assumptions, including changes in market conditions, and management’s judgment in applying them to the analysis. If the future undiscounted cash flows are less than the carrying value, then the definite-lived intangible asset is considered impaired and a charge would be taken against net earnings based on the amount by which the carrying amount exceeds the estimated recoverable amount. Judgments that the Company makes which impact these assessments relate to the expected useful lives of definite-lived assets and its ability to realize any undiscounted cash flows in excess of the carrying amounts of such assets, and are affected primarily by changes in the expected use of the assets, changes in technology or development of alternative assets, changes in economic conditions, changes in operating performance and changes in expected future cash flows. Since judgment is involved in determining the recoverable amount of definite-lived intangible assets, there is risk that the carrying value of the Company's definite-lived intangible assets may require adjustment in future periods. Historical results to date have generally approximated expected cash flows for the identifiable cash flow generating level. The Company believes there have been no events or circumstances which would more likely than not reduce the fair value of its indefinite-lived or definite-lived intangible assets below their carrying value.

Changes to intangible assets are as follows:



(in millions) December 31,	2017			2016			2015
Balance at beginning of period, net of accumulated amortization	$	282.2		$	317.1		$	353.5
Additions	18.2			—			—
Amortization expense	(30.9		)	(30.7		)	(31.5		)
Currency translation and other	7.3			(4.2		)	(4.9		)
Balance at end of period, net of accumulated amortization	$	276.8		$	282.2		$	317.1

For the year ended December 31, 2017, additions to intangible assets represent the purchase price allocation related to the April 2017 acquisition of Westlock and the June 2017 acquisition of Microtronic. See discussion in Note 2, "Acquisitions and Divestitures" for further details.

A summary of intangible assets follows:



(in millions)	Weighted Average Amortization Period of Finite Lived Assets (in years)	December 31, 2017						December 31, 2016
(in millions)		Gross Asset		Accumulated Amortization		Net		Gross Asset		Accumulated Amortization		Net
Intellectual property rights	15.8	$	91.7	$	54.8	$	36.9	$	86.4	$	52.1	$	34.3
Customer relationships and backlog	15.6	414.7		183.4		231.3		388.9		153.4		235.5
Drawings	37.9	11.1		10.4		0.7		11.1		10.3		0.8
Other	13.0	61.8		53.9		7.9		60.3		48.7		11.6
Total	15.8	$	579.3	$	302.5	$	276.8	$	546.7	$	264.5	$	282.2

Future amortization expense associated with intangibles is expected to be:



Year	(in millions)
2018	$	28.9
2019	26.2
2020	22.0
2021	19.6
2022 and after	151.4

Summary Of Intangible Assets

A summary of intangible assets follows:



(in millions)	Weighted Average Amortization Period of Finite Lived Assets (in years)	December 31, 2017						December 31, 2016
(in millions)		Gross Asset		Accumulated Amortization		Net		Gross Asset		Accumulated Amortization		Net
Intellectual property rights	15.8	$	91.7	$	54.8	$	36.9	$	86.4	$	52.1	$	34.3
Customer relationships and backlog	15.6	414.7		183.4		231.3		388.9		153.4		235.5
Drawings	37.9	11.1		10.4		0.7		11.1		10.3		0.8
Other	13.0	61.8		53.9		7.9		60.3		48.7		11.6
Total	15.8	$	579.3	$	302.5	$	276.8	$	546.7	$	264.5	$	282.2

Classification Of Accumulated Other Comprehensive Income (Loss) Reflected On Consolidated Balance Sheets

The table below illustrates the amounts reclassified out of each component of accumulated other comprehensive income (loss) for the years ended December 31, 2017 and 2016.



Details of Accumulated Other Comprehensive Loss Components (in millions)	Amount Reclassified from Accumulated Other Comprehensive Loss						Affected Line Item in the Statements of Operations
December 31,	2017			2016
Amortization of defined benefit pension items:
Prior-service costs	$	(0.6	)	$	(0.6	)	($0.8) has been recorded within Cost of Sales for each of the years ended December 31, 2017 and 2016 and $0.2 has been recorded within Selling, General & Administrative for each of the years ended December 31, 2017 and 2016.
Net loss	14.3			11.3			$19.4 and $15.3 have been recorded within Cost of Sales for the years ended December 31, 2017 and 2016, respectively and ($5.1) and ($4.0) have been recorded within Selling, General & Administrative for the years ended December 31, 2017 and 2016, respectively.
Amortization of other postretirement items:
Prior-service costs	(0.2		)	(0.2		)	Recorded within Selling, General & Administrative
Net gain	(0.3		)	(0.3		)	Recorded within Selling, General & Administrative

	$	13.2		$	10.2		Total before tax
	4.0			3.1			Tax benefit
Total reclassifications for the period	$	9.2		$	7.1		Net of tax