XML 61 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Recent Accounting Pronouncements Table (Details) - USD ($)
$ / shares in Units, $ in Millions
 3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Jan. 01, 2018
Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Accounts Receivable, Net, Current $ 535.1   $ 457.6 $ 524.9
Sales Revenue, Goods, Net 883.1 $ 703.8    
Cost of Goods Sold 618.2 521.6    
Gross Profit 264.9 182.2    
Selling, General and Administrative Expense 148.6 117.6    
Operating Income (Loss) 116.1 62.9    
Income (Loss) Before Income Taxes 108.8 53.6    
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets 3,549.5     3,402.4
Contract with Customer, Asset, Net 111.4   100.5 0.0
Inventory, Net 776.8   716.0 738.9
Other Assets, Current 73.0   84.2 81.2
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent 58.0   58.4 61.0
Other Liabilities, Current 156.9   163.7 160.7
Assets, Current 1,645.8     1,500.1
Assets 3,549.5     3,402.4
Deferred income taxes 44.0     44.0
Liabilities, Noncurrent 1,304.4     1,255.8
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle 0.0      
Stockholders' Equity Attributable to Parent 1,510.9     1,442.7
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest 1,542.8     1,474.9
Increase (Decrease) in Other Accrued Liabilities (38.7) (28.4)    
Cumulative Effect on Retained Earnings, Tax 28.3 15.5    
Other Nonoperating Income (Expense) 2.3 (2.0)    
Net income 80.5 38.1    
Net Income (Loss) Attributable to Parent $ 80.2 $ 38.2    
Basic earnings per share $ 1.03 $ 0.49    
Diluted earnings per share $ 1.02 $ 0.48    
Deferred Income Tax Expense (Benefit) $ (0.2) $ 1.5    
Increase (Decrease) in Accounts Receivable 72.1 50.3    
Increase (Decrease) in Unbilled Receivables (11.5) 0.0    
Increase (Decrease) in Inventories 53.8 6.5    
Increase (Decrease) in Other Operating Assets and Liabilities, Net 2.4 2.7    
Net Cash Provided by Operating Activities (44.3) 46.7    
Restricted cash 3.9 2.9   3.8
Retained Earnings (Accumulated Deficit) $ 1,475.9   1,416.1 1,408.4
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] The new revenue standard introduces a five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new revenue standard also requires disclosures sufficient to enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments and assets recognized from the costs to obtain or fulfill a contract. For further information about the Company's revenues from contracts with customers, refer to Note 10 - Revenue.
On January 1, 2018, the Company adopted the new revenue standard and all of the related amendments using the modified retrospective method and applied those provisions to all open contracts. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.

The cumulative effect of changes made to the balance sheet as of January 1, 2018 for the adoption of the new revenue standard was as follows:
 
Balance at December 31, 2017
Effect of Accounting Change
Balance at
January 1, 2018
ASSETS
 
 
 
     Accounts receivable, less allowances
$
524.9

$
(67.3
)
$
457.6

     Contract assets
—

100.5

100.5

     Inventories, net
738.9

(22.9
)
716.0

     Other current assets
81.2

3.0

84.2

     Deferred income taxes
61.0

(2.6
)
58.4

LIABILITIES
 
 
 
     Other current liabilities
160.7

3.0

163.7

EQUITY
 
 
 
     Earnings invested in the business
1,408.4

7.7

1,416.1

The tables below reflect changes to financial statement line items as a result of adopting the new revenue standard. The adoption of the new revenue standard did not have an impact on "Net cash used in operating activities" on the Consolidated Statement of Cash Flows for the three months ended March 31, 2018.

Consolidated Statement of Income for the three months ended March 31, 2018:
 
Previous Accounting Method
Effect of Accounting Change
As Reported
Net sales
$
879.1

$
4.0

$
883.1

Cost of products sold
616.5

1.7

618.2

Selling, general, and administrative expenses
148.0

0.6

148.6

Income before income taxes
107.1

1.7

108.8

Provision for income taxes
27.9

0.4

28.3

Net income
79.2

1.3

80.5

Net income attributable to The Timken Company
$
78.9

$
1.3

$
80.2

Basic earnings per share
$
1.01

$
0.02

$
1.03

Diluted earnings per share
$
1.00

$
0.02

$
1.02


Consolidated Balance Sheet as of March 31, 2018:
 
Previous Accounting Method
Effect of Accounting Change
As Reported
ASSETS
 
 
 
     Accounts receivable, less allowances
$
609.9

$
(74.8
)
$
535.1

     Contract assets
—

111.4

111.4

     Inventories, net
801.4

(24.6
)
776.8

     Other current assets
69.9

3.1

73.0

     Deferred income taxes
61.0

(3.0
)
58.0

LIABILITIES
 
 
 
     Other current liabilities
153.8

3.1

156.9

EQUITY
 
 
 
     Earnings invested in the business
1,466.9

9.0

1,475.9


      
Accounting Standards Update 2014-09 [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Accounts Receivable, Net, Current $ (74.8)   (67.3)  
Sales Revenue, Goods, Net 4.0      
Cost of Goods Sold 1.7      
Selling, General and Administrative Expense 0.6      
Income (Loss) Before Income Taxes 1.7      
Contract with Customer, Asset, Net 111.4   100.5  
Inventory, Net (24.6)   (22.9)  
Other Assets, Current 3.1   3.0  
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent (3.0)   (2.6)  
Other Liabilities, Current 3.1   3.0  
Cumulative Effect on Retained Earnings, Tax 0.4      
Net income 1.3      
Net Income (Loss) Attributable to Parent $ 1.3      
Basic earnings per share $ 0.02      
Diluted earnings per share $ 0.02      
Retained Earnings (Accumulated Deficit) $ 9.0   $ 7.7  
Accounting Standard Update 2018-02 [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Income Tax Effects Allocated Directly to Equity, Cumulative Effect of Change in Accounting Principle (0.7)      
Accounting Standards Update 2014-09 [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Cost of Goods Sold   (1.7)    
Selling, General and Administrative Expense   (2.0)    
Other Nonoperating Income (Expense)   (3.7)    
Contracts Accounted for under Percentage of Completion [Member] | Timken Gears and Services [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Unbilled Receivables, Current 74.8     $ 67.3
Scenario, Previous Accounting Guidance [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Accounts Receivable, Net, Current 609.9      
Sales Revenue, Goods, Net 879.1      
Cost of Goods Sold 616.5      
Selling, General and Administrative Expense 148.0      
Income (Loss) Before Income Taxes 107.1      
Contract with Customer, Asset, Net 0.0      
Inventory, Net 801.4      
Other Assets, Current 69.9      
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent 61.0      
Other Liabilities, Current 153.8      
Cumulative Effect on Retained Earnings, Tax 27.9      
Net income 79.2      
Net Income (Loss) Attributable to Parent $ 78.9      
Basic earnings per share $ 1.01      
Diluted earnings per share $ 1.00      
Retained Earnings (Accumulated Deficit) $ 1,466.9      
Scenario, Previously Reported [Member]        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Cost of Goods Sold   523.3    
Selling, General and Administrative Expense   119.6    
Other Nonoperating Income (Expense)   $ 1.7