Retirement Benefit Plans (Tables) - Pension Plan, Defined Benefit [Member]
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12 Months Ended |
Dec. 31, 2015 |
|---|
| Defined Benefit Plan Disclosure [Line Items] |
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| Schedule of Changes in Projected Benefit Obligations [Table Text Block] |
The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2015 and 2014: | | | | | | | | | | | | | | | U.S. Plans | International Plans | | 2015 | 2014 | 2015 | 2014 | Change in benefit obligation: | | | | | Benefit obligation at beginning of year | $ | 1,703.9 |
| $ | 2,642.4 |
| $ | 415.7 |
| $ | 491.1 |
| Service cost | 15.4 |
| 21.5 |
| 2.2 |
| 2.4 |
| Interest cost | 45.6 |
| 98.3 |
| 12.3 |
| 17.7 |
| Amendments | — |
| — |
| — |
| 0.3 |
| Actuarial losses (gains) | 68.8 |
| 239.6 |
| (31.6 | ) | 38.7 |
| Employee contributions | — |
| — |
| — |
| 0.3 |
| International plan exchange rate change | — |
| — |
| (29.5 | ) | (29.5 | ) | Curtailment | — |
| — |
| 0.5 |
| — |
| Benefits paid | (100.9 | ) | (234.6 | ) | (17.6 | ) | (23.5 | ) | Special termination benefits | — |
| — |
| 0.6 |
| — |
| Settlements | (1,162.8 | ) | — |
| (14.5 | ) | — |
| Acquisitions | 19.9 |
| — |
| — |
| — |
| Spinoff of TimkenSteel | — |
| (1,063.3 | ) | — |
| (81.8 | ) | Benefit obligation at end of year | $ | 589.9 |
| $ | 1,703.9 |
| $ | 338.1 |
| $ | 415.7 |
|
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| Schedule of Changes in Fair Value of Plan Assets [Table Text Block] |
| | | | | | | | | | | | | | | U.S. Plans | International Plans | | 2015 | 2014 | 2015 | 2014 | Change in plan assets: | | | | | Fair value of plan assets at beginning of year | $ | 1,772.4 |
| $ | 2,870.0 |
| $ | 349.4 |
| $ | 420.6 |
| Actual return on plan assets | 23.0 |
| 250.5 |
| 4.5 |
| 42.2 |
| Employee contributions | — |
| — |
| — |
| 0.3 |
| Company contributions / payments | 4.4 |
| 4.5 |
| 6.4 |
| 16.6 |
| International plan exchange rate change | — |
| — |
| (23.6 | ) | (21.2 | ) | Acquisitions | 17.6 |
| — |
| — |
| — |
| Settlements | (1,162.8 | ) | — |
| (14.5 | ) | — |
| Benefits paid | (100.9 | ) | (234.6 | ) | (17.6 | ) | (23.5 | ) | Spinoff of TimkenSteel | — |
| (1,118.0 | ) | — |
| (85.6 | ) | Fair value of plan assets at end of year | 553.7 |
| 1,772.4 |
| 304.6 |
| 349.4 |
| Funded status at end of year | $ | (36.2 | ) | $ | 68.5 |
| $ | (33.5 | ) | $ | (66.3 | ) |
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| Net periodic benefit cost for the Company's retirement benefit plans |
The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31: | | | | | | | | | | | | | | | | | | | | | U.S. Plans | International Plans | | 2015 | 2014 | 2013 | 2015 | 2014 | 2013 | Components of net periodic benefit cost: | | | | | | | Service cost | $ | 15.4 |
| $ | 21.5 |
| $ | 35.7 |
| $ | 2.2 |
| $ | 2.4 |
| $ | 2.8 |
| Interest cost | 45.6 |
| 98.3 |
| 116.2 |
| 12.3 |
| 17.7 |
| 18.5 |
| Expected return on plan assets | (62.6 | ) | (152.0 | ) | (207.6 | ) | (16.7 | ) | (23.7 | ) | (24.4 | ) | Amortization of prior service cost | 2.8 |
| 3.5 |
| 4.5 |
| 0.1 |
| 0.1 |
| — |
| Amortization of net actuarial loss | 31.1 |
| 55.6 |
| 109.2 |
| 5.2 |
| 5.3 |
| 7.6 |
| Curtailment | — |
| — |
| — |
| 0.6 |
| — |
| — |
| Settlement | 456.4 |
| 32.7 |
| — |
| 4.8 |
| 0.8 |
| 7.2 |
| Special termination benefits | — |
| — |
| — |
| 0.6 |
| — |
| — |
| Less: Discontinued operations | — |
| (8.0 | ) | (24.2 | ) | — |
| 0.4 |
| 0.4 |
| Net periodic benefit cost | $ | 488.7 |
| $ | 51.6 |
| $ | 33.8 |
| $ | 9.1 |
| $ | 3.0 |
| $ | 12.1 |
|
|
| Defined Benefit Plans Amounts recognized on the Consolidated Balance Sheets |
| | | | | | | | | | | | | | Amounts recognized on the Consolidated Balance Sheets: | | | | | Non-current assets | $ | 69.0 |
| $ | 176.2 |
| $ | 17.3 |
| $ | — |
| Current liabilities | (4.2 | ) | (4.1 | ) | (4.9 | ) | (4.0 | ) | Non-current liabilities | (101.0 | ) | (103.6 | ) | (45.9 | ) | (62.3 | ) | | $ | (36.2 | ) | $ | 68.5 |
| $ | (33.5 | ) | $ | (66.3 | ) |
|
| Defined Benefit Plans Amounts recognized in accumulated other comprehensive income |
| | | | | | | | | | | | | | Amounts recognized in accumulated other comprehensive loss: | | | | | Net actuarial loss | $ | 187.4 |
| $ | 566.5 |
| $ | 93.3 |
| $ | 132.3 |
| Net prior service cost | 9.1 |
| 11.9 |
| 0.5 |
| 0.7 |
| Accumulated other comprehensive loss | $ | 196.5 |
| $ | 578.4 |
| $ | 93.8 |
| $ | 133.0 |
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| | | | | | | | | | | | | | Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss (AOCL): | | | | | AOCL at beginning of year | $ | 578.4 |
| $ | 865.4 |
| $ | 133.0 |
| $ | 142.7 |
| Net actuarial loss (gain) | 108.4 |
| 141.0 |
| (18.9 | ) | 20.2 |
| Prior service cost | — |
| — |
| — |
| 0.3 |
| Recognized net actuarial loss | (31.1 | ) | (55.6 | ) | (5.2 | ) | (5.3 | ) | Recognized prior service cost | (2.8 | ) | (3.5 | ) | (0.1 | ) | (0.1 | ) | Loss recognized due to curtailment | — |
| — |
| (0.6 | ) | — |
| Loss recognized due to settlement | (456.4 | ) | (32.7 | ) | (4.8 | ) | (0.8 | ) | Foreign currency impact | — |
| — |
| (9.6 | ) | (9.8 | ) | TimkenSteel Spinoff | — |
| (336.2 | ) | — |
| (14.2 | ) | Total recognized in accumulated other comprehensive loss at December 31 | $ | 196.5 |
| $ | 578.4 |
| $ | 93.8 |
| $ | 133.0 |
|
|
| Target assets allocation and actual asset allocations for US pension plan assets |
The Company’s target allocation for pension plan assets, as well as the actual pension plan asset allocations as of December 31, 2015 and 2014, was as follows: | | | | | | | | Current Target Allocation | Percentage of Pension Plan Assets at December 31, | Asset Category | | | | 2015 | 2014 | Equity securities | 6% | to | 12% | 15% | 10% | Debt securities | 70% | to | 90% | 63% | 77% | Other | 7% | to | 15% | 22% | 13% | Total | | | | 100% | 100% |
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| Fair Value, Assets Measured on Recurring Basis [Table Text Block] |
The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2015: | | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Pension Plans | International Pension Plans | | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Assets: | | | | | | | | | Cash and cash equivalents | $ | 65.9 |
| $ | 23.9 |
| $ | 42.0 |
| $ | — |
| $ | 31.0 |
| $ | 12.8 |
| $ | 18.2 |
| $ | — |
| Government and agency securities | 35.1 |
| 32.9 |
| 2.2 |
| — |
| — |
| — |
| — |
| — |
| Corporate bonds - investment grade | 56.0 |
| — |
| 56.0 |
| — |
| 3.0 |
| — |
| 3.0 |
| — |
| Equity securities - U.S. companies | 9.8 |
| 9.7 |
| 0.1 |
| — |
| — |
| — |
| — |
| — |
| Equity securities - international companies | 6.1 |
| 6.1 |
| — |
| — |
| 0.9 |
| — |
| 0.9 |
| — |
| Common collective funds - domestic equities | 13.0 |
| — |
| 13.0 |
| — |
| — |
| — |
| — |
| — |
| Common collective funds - international equities | 14.2 |
| — |
| 14.2 |
| — |
| 81.4 |
| — |
| 81.4 |
| — |
| Common collective funds - fixed income | 173.5 |
| — |
| 173.5 |
| — |
| 85.0 |
| — |
| 85.0 |
| — |
| Common collective funds - other | — |
| — |
| — |
| — |
| 103.3 |
| — |
| 103.3 |
| — |
| Limited partnerships | 52.8 |
| — |
| — |
| 52.8 |
| — |
| — |
| — |
| — |
| Real estate partnerships | 99.7 |
| — |
| 71.9 |
| 27.8 |
| — |
| — |
| — |
| — |
| Risk parity | 27.6 |
| — |
| 27.6 |
| — |
| — |
| — |
| — |
| — |
| Total Assets | $ | 553.7 |
| $ | 72.6 |
| $ | 400.5 |
| $ | 80.6 |
| $ | 304.6 |
| $ | 12.8 |
| $ | 291.8 |
| $ | — |
|
The following table presents the fair value hierarchy for those investments of the Company’s pension assets measured at fair value on a recurring basis as of December 31, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Pension Plans | International Pension Plans | | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Assets: | | | | | | | | | Cash and cash equivalents | $ | 55.3 |
| $ | 0.8 |
| $ | 54.5 |
| $ | — |
| $ | 25.5 |
| $ | — |
| $ | 25.5 |
| $ | — |
| Government and agency securities | 505.9 |
| 496.4 |
| 9.5 |
| — |
| — |
| — |
| — |
| — |
| Corporate bonds - investment grade | 473.7 |
| — |
| 473.7 |
| — |
| 2.7 |
| — |
| 2.7 |
| — |
| Equity securities - U.S. companies | 22.7 |
| 22.7 |
| — |
| — |
| 30.2 |
| 30.2 |
| — |
| — |
| Equity securities - international companies | 16.3 |
| 16.3 |
| — |
| — |
| 26.6 |
| 25.7 |
| 0.9 |
| — |
| Asset backed securities | — |
| — |
| — |
| — |
| 3.4 |
| — |
| 3.4 |
| — |
| Common collective funds - domestic equities | 22.6 |
| — |
| 22.6 |
| — |
| 2.1 |
| — |
| 2.1 |
| — |
| Common collective funds - international equities | 27.4 |
| — |
| 27.4 |
| — |
| 60.6 |
| — |
| 60.6 |
| — |
| Common collective funds - fixed income | 379.5 |
| — |
| 379.5 |
| — |
| 108.9 |
| — |
| 108.9 |
| — |
| Common collective funds - other | — |
| — |
| — |
| — |
| 89.4 |
| — |
| 89.4 |
| — |
| Limited partnerships | 66.1 |
| — |
| — |
| 66.1 |
| — |
| — |
| — |
| — |
| Real estate partnerships | 112.6 |
| — |
| 84.8 |
| 27.8 |
| — |
| — |
| — |
| — |
| Risk Parity | 90.3 |
| — |
| 90.3 |
| — |
| — |
| — |
| — |
| — |
| Total Assets | $ | 1,772.4 |
| $ | 536.2 |
| $ | 1,142.3 |
| $ | 93.9 |
| $ | 349.4 |
| $ | 55.9 |
| $ | 293.5 |
| $ | — |
|
|
| Summary of changes in the fair value of the plan's level three assets |
The table below sets forth a summary of changes in the fair value of the level 3 assets by fund for the year ended December 31, 2015: | | | | | | | | | | | | Limited Partnerships | Real Estate | Total | Beginning balance, January 1 | $ | 66.1 |
| $ | 27.8 |
| $ | 93.9 |
| Purchases | 0.6 |
| 7.0 |
| 7.6 |
| Sales | (9.8 | ) | (8.3 | ) | (18.1 | ) | Realized losses | (7.5 | ) | (4.7 | ) | (12.2 | ) | Unrealized gains | 3.4 |
| 6.0 |
| 9.4 |
| Ending balance, December 31 | $ | 52.8 |
| $ | 27.8 |
| $ | 80.6 |
|
The table below sets forth a summary of changes in the fair value of the level 3 assets by fund for the year ended December 31, 2014: | | | | | | | | | | | | Limited Partnerships | Real Estate | Total | Beginning balance, January 1 | $ | 78.8 |
| $ | 21.1 |
| $ | 99.9 |
| Purchases | 2.1 |
| 10.5 |
| 12.6 |
| Sales | (16.8 | ) | (5.6 | ) | (22.4 | ) | Realized losses | (11.0 | ) | (4.1 | ) | (15.1 | ) | Unrealized gains | 13.0 |
| 5.9 |
| 18.9 |
| Ending balance, December 31 | $ | 66.1 |
| $ | 27.8 |
| $ | 93.9 |
|
|
| Employer contributions to defined benefit plans |
| | | | | Employer Contributions to Defined Benefit Plans | | 2014 | $ | 21.1 |
| 2015 | 10.8 |
| 2016 (planned) | 15.0 |
|
|
| Future pension benefit payments |
Future benefit payments, including lump sum distributions, are expected to be as follows: | | | | | Benefit Payments | | 2016 | $ | 94.5 |
| 2017 | 67.4 |
| 2018 | 59.5 |
| 2019 | 83.8 |
| 2020 | 63.2 |
| 2021-2025 | 331.6 |
|
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| Schedule of Assumptions Used [Table Text Block] |
| | | | | | | | Assumptions | 2015 | 2014 | 2013 | U.S. Plans: | | | | Discount rate | 3.98% to 4.64% |
| 4.68% / 5.02% |
| 4.00 | % | Future compensation assumption | 2.00% to 3.00% |
| 2.00% to 3.00% |
| 2.00% to 3.00% |
| Expected long-term return on plan assets | 6.00 | % | 7.25 | % | 8.00 | % | International Plans: | | | | Discount rate | 1.50% to 8.75% |
| 3.25% to 9.75% |
| 2.75% to 9.00% |
| Future compensation assumption | 2.20% to 8.00% |
| 2.30% to 8.00% |
| 2.30% to 8.00% |
| Expected long-term return on plan assets | 2.25% to 9.25% |
| 3.00% to 8.50% |
| 3.25% to 8.50% |
|
In 2015, the Company entered into two agreements pursuant to which two of the Company's U.S. defined benefit pension plans purchased group annuity contracts from Prudential. The two group annuity contracts require Prudential to pay and administer future pension benefits for approximately 8,400 U.S. Timken retirees in the aggregate. The Company transferred a total of approximately $1.1 billion of its pension obligations and a total of approximately $1.2 billion of pension assets to Prudential in these transactions. In addition to the purchase of the group annuity contracts, the Company made lump-sum distributions of $37.2 million to new retirees in the U.S. The Company also entered into an agreement pursuant to which one of the Company's Canadian defined benefit pension plans purchased a group annuity contract from Canada Life. The group annuity contract requires Canada Life to pay and administer future pension benefits for approximately 40 Canadian retirees. As a result of the group annuity contracts, lump-sum distributions, as well as pension settlement and curtailment charges related to the Company's Canadian pension plans, the Company incurred total pension settlement and curtailment charges of $465.0 million, including professional fees of $2.6 million, in 2015.
In 2014, the Company incurred pension settlement charges of $33.7 million, including professional fees, primarily to settle approximately $110 million of the Company's pension obligations related to one of its defined benefit pension plans in the U.S. as a result of the lump sum distributions for 2014 retirements and certain deferred vested plan participants.
The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance. The following table summarizes assumptions used to measure the benefit obligation for the defined benefit pension plans at December 31: | | | | | | Assumptions | 2015 | 2014 | U.S. Plans: | | | Discount rate | 4.69 | % | 4.20 | % | Future compensation assumption | 2.00% to 3.00% |
| 2.00% to 3.00% |
| International Plans: | | | Discount rate | 2.00% to 8.50% |
| 1.50% to 8.75% |
| Future compensation assumption | 2.20% to 8.00% |
| 2.20% to 8.00% |
|
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