Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PARK OHIO INDUSTRIES INC/OH | |
Entity Central Index Key | 0001068148 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | No | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 100 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 41.6 | $ 46.7 | $ 39.8 | $ 46.6 |
Accounts receivable, net | 248.9 | 261.3 | ||
Inventories, net | 330.1 | 327.2 | ||
Receivable from affiliates | 24.5 | 24.1 | ||
Prepaid and other current assets | 85 | 80.8 | ||
Total current assets | 730.1 | 740.1 | ||
Property, plant and equipment, net | 233.8 | 240.1 | ||
Operating lease right-of-use assets | 60.7 | 64.3 | ||
Goodwill | 106.9 | 108.4 | ||
Intangible assets, net | 87.8 | 90.6 | ||
Other long-term assets | 83.4 | 83.8 | ||
Total assets | 1,302.7 | 1,327.3 | ||
Current liabilities: | ||||
Trade accounts payable | 161.7 | 175 | ||
Payable to affiliates | 7.2 | 7.1 | ||
Current portion of long-term debt and short-term debt | 15.3 | 16.8 | ||
Current portion of operating lease liabilities | 11.4 | 11.9 | ||
Accrued expenses and other | 104.4 | 101.5 | ||
Total current liabilities | 300 | 312.3 | ||
Long-term liabilities, less current portion: | ||||
Long-term debt | 560.2 | 545.2 | ||
Long-term operating lease liabilities | 50.5 | 53.6 | ||
Other long-term liabilities | 56.8 | 58.4 | ||
Total long-term liabilities | 667.5 | 657.2 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 321 | 343.7 | ||
Noncontrolling interests | 14.2 | 14.1 | ||
Total equity | 335.2 | 357.8 | $ 337.3 | $ 317.9 |
Total liabilities and shareholder's equity | $ 1,302.7 | $ 1,327.3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 366.3 | $ 420.1 |
Cost of sales | 312.4 | 354.8 |
Gross profit | 53.9 | 65.3 |
Selling, general and administrative expenses | 40.7 | 42.7 |
Operating income (loss) | 13.2 | 22.6 |
Other components of pension income and other postretirement benefits expense, net | 1.8 | 1.3 |
Interest expense, net | (7.9) | (8.2) |
Income (loss) before income taxes | 7.1 | 15.7 |
Income tax expense | (5.5) | (3.9) |
Net income (loss) | 1.6 | 11.8 |
Net income attributable to noncontrolling interests | (0.1) | (0.5) |
Net income attributable to Park-Ohio Industries Inc. common shareholder | $ 1.5 | $ 11.3 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1.6 | $ 11.8 |
Other comprehensive (loss) income, net of tax: | ||
Currency translation | (16.6) | 0.7 |
Pension and other postretirement benefits | 0.5 | 5.3 |
Total other comprehensive (loss) income | (16.1) | 6 |
Total comprehensive (loss) income, net of tax | (14.5) | 17.8 |
Comprehensive income attributable to noncontrolling interests | (0.1) | (0.5) |
Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder | $ (14.6) | $ 17.3 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2018 | $ 317.9 | $ 0 | $ 123.2 | $ 221.9 | $ (40.9) | $ 13.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 17.8 | 11.3 | 6 | 0.5 | ||
Stock-based compensation expense | 1.9 | 1.9 | ||||
Dividends | (0.3) | (0.3) | ||||
Balance at end of period at Mar. 31, 2019 | 337.3 | 0 | 125.1 | 233.2 | (34.9) | 13.9 |
Balance at beginning of period at Dec. 31, 2019 | 357.8 | 0 | 127.3 | 253.4 | (37) | 14.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | (14.5) | 1.5 | (16.1) | 0.1 | ||
Stock-based compensation expense | 1.4 | 1.4 | ||||
Dividend paid to parent | (9.5) | (9.5) | ||||
Balance at end of period at Mar. 31, 2020 | $ 335.2 | $ 0 | $ 128.7 | $ 245.4 | $ (53.1) | $ 14.2 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net income | $ 1.6 | $ 11.8 |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | ||
Depreciation and amortization | 8.9 | 9.2 |
Stock-based compensation expense | 1.4 | 1.9 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 8.1 | (23) |
Inventories | (7.3) | (11.2) |
Prepaid and other current assets | (5.3) | 7 |
Accounts payable and accrued expenses | (8.5) | 11.2 |
Other | (3) | (1.5) |
Net cash (used) provided by operating activities | (4.1) | 5.4 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (4.9) | (10.6) |
Proceeds from sale of an asset | 1.4 | 0 |
Net cash used by investing activities | (3.5) | (10.6) |
FINANCING ACTIVITIES | ||
Proceeds from revolving credit facility, net | 15.5 | 1.3 |
Payments on term loans and other debt | (2.3) | (2.2) |
Proceeds from term loans and other debt | 0.2 | 1.1 |
Proceeds from finance lease facilities, net | 0.6 | |
Payments on finance lease facilities, net | (1.6) | |
Dividends paid to Parent | (9.5) | |
Dividends | (0.3) | |
Net cash provided (used) by financing activities | 4.5 | (1.7) |
Effect of exchange rate changes on cash | (2) | 0.1 |
Decrease in cash and cash equivalents | (5.1) | (6.8) |
Cash and cash equivalents at beginning of period | 46.7 | 46.6 |
Cash and cash equivalents at end of period | $ 41.6 | $ 39.8 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements include the accounts of Park-Ohio Industries, Inc. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. Park-Ohio Industries, Inc. is a wholly-owned subsidiary of Park-Ohio Holdings Corp. (“Holdings”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Pronouncements Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” which replaced the current incurred loss impairment model with a methodology that reflected expected credit losses. Under the new methodology, entities will measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions and reasonable forecasts. The Company adopted this standard as of January 1, 2020. The adoption of the standard had an immaterial impact on the Company. For the three-month period ended March 31, 2020, the provision and write-offs were not material, and the allowance approximated $4.7 million as of March 31, 2020. Recent Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate. Adoption of this guidance is required for interim and annual periods beginning after December 31, 2022. The Company is currently evaluating the expected impact of this standard. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue We disaggregate our revenue by product line and geographic region of our customer, as we believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below. Three Months Ended March 31, 2020 2019 (In millions) PRODUCT LINE Supply Technologies $ 121.9 $ 144.8 Engineered specialty fasteners and other products 18.9 20.5 Supply Technologies Segment 140.8 165.3 Fuel, rubber and plastic products 84.7 89.6 Aluminum products 43.5 48.7 Assembly Components Segment 128.2 138.3 Industrial equipment 66.1 80.6 Forged and machined products 31.2 35.9 Engineered Products Segment 97.3 116.5 Total revenues $ 366.3 $ 420.1 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended March 31, 2020 GEOGRAPHIC REGION United States $ 90.0 $ 90.7 $ 53.2 $ 233.9 Europe 23.7 4.2 15.7 43.6 Asia 9.5 4.3 15.8 29.6 Mexico 14.5 10.2 2.2 26.9 Canada 2.9 18.4 6.4 27.7 Other 0.2 0.4 4.0 4.6 Total $ 140.8 $ 128.2 $ 97.3 $ 366.3 Three Months Ended March 31, 2019 GEOGRAPHIC REGION United States $ 110.4 $ 101.7 $ 68.1 $ 280.2 Europe 26.5 4.3 20.4 51.2 Asia 11.3 5.2 14.9 31.4 Mexico 13.7 9.0 3.0 25.7 Canada 3.2 17.7 7.6 28.5 Other 0.2 0.4 2.5 3.1 Total $ 165.3 $ 138.3 $ 116.5 $ 420.1 |
Segments
Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segments | Segments Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs; certain non-cash and/or non-operating items; Other components of pension income and other postretirement benefits expense, net; and interest expense, net. Results by business segment were as follows: Three Months Ended March 31, 2020 2019 (In millions) Net sales: Supply Technologies $ 140.8 $ 165.3 Assembly Components 128.2 138.3 Engineered Products 97.3 116.5 $ 366.3 $ 420.1 Segment operating income: Supply Technologies $ 9.2 $ 13.1 Assembly Components 6.3 8.3 Engineered Products 3.8 8.1 Total segment operating income 19.3 29.5 Corporate costs (6.1 ) (6.9 ) Operating income 13.2 22.6 Other components of pension income and other postretirement benefits expense, net 1.8 1.3 Interest expense, net (7.9 ) (8.2 ) Income before income taxes $ 7.1 $ 15.7 |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisition On May 31, 2019, the Company acquired EFCO, Inc. d/b/a Erie Press Systems (“EP”) for $9.1 million , including potential contingent consideration. The purchase price allocation for EP was finalized as of December 31, 2019. The purchase agreement stipulates potential contingent consideration of up to an additional $1.0 million based on two-year cumulative earnings before interest and taxes. The estimated fair value of the contingent consideration, valued using level 3 inputs, was approximately $1.0 million as of March 31, 2020. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consist of the following: March 31, 2020 December 31, 2019 (In millions) Raw materials and supplies $ 95.2 $ 92.6 Work in process 55.2 51.3 Finished goods 177.7 181.3 LIFO reserve 2.0 2.0 Inventories, net $ 330.1 $ 327.2 |
Accrued Warranty Costs
Accrued Warranty Costs | 3 Months Ended |
Mar. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Accrued Warranty Costs | Accrued Warranty Costs The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In millions) Beginning balance $ 6.4 $ 6.2 Claims paid (0.2 ) (0.8 ) Warranty expense 0.6 1.3 Ending balance $ 6.8 $ 6.7 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period. Income tax expense for the three months ended March 31, 2020 was $5.5 million , representing an effective rate of 77% compared to income tax expense of $3.9 million , or 25% , for the three months ended March 31, 2019. The increase in the rate in the first quarter of 2020 was driven by an earnings mix that yields an increase in the Global Intangible Low Taxed Income (“GILTI”) inclusion, and also reduces the benefit of foreign tax credits and the Foreign Derived Intangible Income (“FDII”) deduction. On March 27, 2020, the President of the United States signed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, a substantial tax-and-spending package intended to provide additional economic stimulus to address the impact of the COVID-19 pandemic. Significant impacts of the CARES Act include the ability to carry back an NOL for 5 years and an increase of the Internal Revenue Code Section 163(j) interest expense disallowance limitations from 30% to 50% of adjusted taxable income, which will allow the Company to deduct additional interest expense for the 2019 and 2020 tax years. The Company is assessing the potential impact of global relief packages and the CARES Act, including the effect upon the Company’s 2019 income tax return to be filed later in 2020, as well as the 2020 tax provision. Management continues to evaluate the impact of the CARES Act. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements Debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2020 March 31, 2020 December 31, 2019 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility November 26, 2024 2.12 % 188.2 173.2 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 4.5 4.6 Finance Leases Various Various 17.9 17.2 Other Various Various 21.1 23.5 Total debt 581.7 568.5 Less current portion of long-term and short-term debt (15.3 ) (16.8 ) Less unamortized debt issuance costs (6.2 ) (6.5 ) Total long-term debt, net $ 560.2 $ 545.2 In 2018, the Company entered into Amendment No. 1 to Seventh Amended and Restated Credit Agreement (the “Credit Agreement”) with a group of banks to increase the availability under the revolving credit facility from $350.0 million to $375.0 million , the Canadian revolving subcommitment from $35.0 million to $40.0 million and the European revolving subcommitment from $25.0 million to $30.0 million . Furthermore, the Company has the option, pursuant to the Credit Agreement, to increase the availability under the revolving credit facility by an aggregate incremental amount up to $100.0 million . In 2019, Park-Ohio entered into Amendment No. 4 to the Credit Agreement, extending the maturity of the Credit Agreement to November 26, 2024. We had outstanding bank guarantees and letters of credit of approximately $31.5 million at March 31, 2020 and $33.8 million at December 31, 2019 under the Credit Agreement. In 2017, the Company completed the issuance, in a private placement, of $350.0 million aggregate principal amount of 6.625% Senior Notes due 2027 (the “Notes”). The Notes are unsecured senior obligations of the Company and are guaranteed on an unsecured senior basis by the 100% owned material domestic subsidiaries of the Company. In 2016, the Company, through its subsidiary, IEGE Industrial Equipment Holding Company Limited, entered into a financing agreement with Banco Bilbao Vizcaya Argentaria, S.A. The financing agreement provides the Company a loan up to $27.4 million as of March 31, 2020 , as well as a revolving credit facility for up to $11.0 million to fund working capital and general corporate needs. The Company had $4.5 million outstanding on the loan as of March 31, 2020 . No amounts have been drawn on the revolving credit facility as of March 31, 2020 . In 2015, the Company entered into a finance lease agreement (the “Lease Agreement”). The Lease Agreement provides the Company up to $50.0 million for finance leases. Finance lease obligations of $17.9 million were borrowed under the Lease Agreement to acquire machinery and equipment as of March 31, 2020 . In 2015, the Company, through its Southwest Steel Processing LLC subsidiary, entered into a financing agreement with the Arkansas Development Finance Authority. The financing agreement provides the Company the ability to borrow up to $11.0 million for expansion of its manufacturing facility in Arkansas. The financing agreement matures in September 2025. The Company had $8.1 million of borrowings outstanding under this agreement as of March 31, 2020 , which is included in Other above. The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices. March 31, 2020 December 31, 2019 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 281.8 $ 358.3 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease manufacturing facilities, warehouse space, office space, machinery and equipment, information technology equipment and vehicles under operating leases. We also lease one building and machinery and equipment under finance leases. For operating leases with terms greater than 12 months, we record the operating right-of-use asset and related lease liability at the present value of lease payments over the lease term. In certain real estate leases, we have options to renew lease terms, generally at our sole discretion. We evaluate renewal options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The discount rate implicit in our operating leases is generally not determinable, and therefore the Company determines the discount rate for each lease based on its incremental borrowing rate. The incremental borrowing rate is calculated based on lease term, currency and collateral adjustments. During the three months ended March 31, 2020 , the Company obtained right-of-use assets in exchange for new operating lease liabilities of $1.5 million . Balance Sheet as of March 31, 2020 and December 31, 2019 Classification on the Balance Sheet March 31, 2020 December 31, 2019 Assets (in millions) Operating lease assets Operating lease right-of-use assets $ 60.7 $ 64.3 Finance lease assets Property, plant and equipment, net 28.2 27.1 Total lease assets $ 88.9 $ 91.4 Liabilities Current Operating Current portion of operating lease liabilities $ 11.4 $ 11.9 Finance Current portion of long-term debt and short-term debt 6.7 7.0 Noncurrent Operating Long-term operating lease liabilities 50.5 53.6 Finance Long-term debt 11.2 10.2 Total lease liabilities $ 79.8 $ 82.7 Weighted-average remaining lease term (in years) Operating leases 6.9 7.1 Finance leases 4.0 3.9 Weighted-average discount rate Operating leases 5.3 % 5.4 % Finance leases 3.9 % 3.7 % Lease Expense for the three months ended March 31, 2020 and 2019 Operating lease expense is recognized on a straight-line basis over the lease term, with variable payments recognized in the period those payments are incurred. Three Months Ended March 31, 2020 2019 Finance lease expense (in millions) Amortization of right-of-use assets $ 1.1 $ 1.0 Interest on lease liabilities 0.2 0.2 Operating lease expense 3.9 4.6 Other lease expense (1) 1.8 1.0 Total lease expense $ 7.0 $ 6.8 (1) - Other lease expense includes variable lease costs and short-term lease costs. Cash Flow Information March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (in millions) Operating cash flows for operating leases $ (3.9 ) $ (4.4 ) Operating cash flows for finance leases $ (0.2 ) $ (0.2 ) Financing cash flows for finance leases $ 0.6 $ (1.6 ) |
Leases | Leases We lease manufacturing facilities, warehouse space, office space, machinery and equipment, information technology equipment and vehicles under operating leases. We also lease one building and machinery and equipment under finance leases. For operating leases with terms greater than 12 months, we record the operating right-of-use asset and related lease liability at the present value of lease payments over the lease term. In certain real estate leases, we have options to renew lease terms, generally at our sole discretion. We evaluate renewal options at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The discount rate implicit in our operating leases is generally not determinable, and therefore the Company determines the discount rate for each lease based on its incremental borrowing rate. The incremental borrowing rate is calculated based on lease term, currency and collateral adjustments. During the three months ended March 31, 2020 , the Company obtained right-of-use assets in exchange for new operating lease liabilities of $1.5 million . Balance Sheet as of March 31, 2020 and December 31, 2019 Classification on the Balance Sheet March 31, 2020 December 31, 2019 Assets (in millions) Operating lease assets Operating lease right-of-use assets $ 60.7 $ 64.3 Finance lease assets Property, plant and equipment, net 28.2 27.1 Total lease assets $ 88.9 $ 91.4 Liabilities Current Operating Current portion of operating lease liabilities $ 11.4 $ 11.9 Finance Current portion of long-term debt and short-term debt 6.7 7.0 Noncurrent Operating Long-term operating lease liabilities 50.5 53.6 Finance Long-term debt 11.2 10.2 Total lease liabilities $ 79.8 $ 82.7 Weighted-average remaining lease term (in years) Operating leases 6.9 7.1 Finance leases 4.0 3.9 Weighted-average discount rate Operating leases 5.3 % 5.4 % Finance leases 3.9 % 3.7 % Lease Expense for the three months ended March 31, 2020 and 2019 Operating lease expense is recognized on a straight-line basis over the lease term, with variable payments recognized in the period those payments are incurred. Three Months Ended March 31, 2020 2019 Finance lease expense (in millions) Amortization of right-of-use assets $ 1.1 $ 1.0 Interest on lease liabilities 0.2 0.2 Operating lease expense 3.9 4.6 Other lease expense (1) 1.8 1.0 Total lease expense $ 7.0 $ 6.8 (1) - Other lease expense includes variable lease costs and short-term lease costs. Cash Flow Information March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (in millions) Operating cash flows for operating leases $ (3.9 ) $ (4.4 ) Operating cash flows for finance leases $ (0.2 ) $ (0.2 ) Financing cash flows for finance leases $ 0.6 $ (1.6 ) |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation A summary of Holdings' restricted share activity for the three months ended March 31, 2020 is as follows: 2020 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 471,634 $ 32.06 50,000 $ 32.55 Granted 6,000 35.13 — — Vested (15,667 ) 36.83 — — Canceled or expired (5,000 ) 37.55 — — Outstanding - end of period 456,967 $ 31.96 50,000 $ 32.55 Total stock-based compensation expense included in Selling, general and administrative expenses for the three months ended March 31, 2020 and 2019 were $1.4 million and $1.9 million , respectively. As of March 31, 2020 , there was $7.3 million of unrecognized compensation cost related to non-vested stock-based compensation, which cost is expected to be recognized over a weighted-average period of 2.2 years. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. Our subsidiaries are involved in a number of contractual and warranty-related disputes. We believe that appropriate liabilities for these contingencies have been recorded; however, actual results may differ materially from our estimates. In addition to the routine lawsuits and asserted claims noted above, we are also a co-defendant in approximately 119 cases asserting claims on behalf of approximately 222 plaintiffs alleging personal injury as a result of exposure to asbestos. In every asbestos case in which we are named as a party, the complaints are filed against multiple named defendants. Historically, we have been dismissed from asbestos cases. We intend to vigorously defend these cases and believe we will continue to be successful in being dismissed from such cases. While it is not possible to predict the ultimate outcome of asbestos-related lawsuits, claims and proceedings due to the unpredictable nature of personal injury litigation, and although our results of operations and cash flows for a particular period could be adversely affected by asbestos-related lawsuits, claims and proceedings, management believes that the ultimate resolution of these matters will not have a material adverse effect on our financial condition, liquidity or results of operations. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The components of net periodic benefit (income) costs recognized during interim periods were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 (In millions) Service costs $ 1.1 $ 0.9 $ — $ — Interest costs 0.5 0.7 — 0.1 Expected return on plan assets (2.9 ) (2.7 ) — — Recognized net actuarial loss 0.5 0.6 0.1 — Net periodic benefit (income) expense $ (0.8 ) $ (0.5 ) $ 0.1 $ 0.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) Income The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ (22.4 ) $ (14.6 ) $ (37.0 ) $ (21.3 ) $ (19.6 ) $ (40.9 ) Currency translation (a) (16.6 ) — (16.6 ) 0.7 — 0.7 Pension and OPEB activity, net of tax — 0.5 0.5 — 5.3 5.3 Ending balance $ (39.0 ) $ (14.1 ) $ (53.1 ) $ (20.6 ) $ (14.3 ) $ (34.9 ) (a) No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested. |
Supplemental Guarantor Informat
Supplemental Guarantor Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Supplemental Guarantor Information | Supplemental Guarantor Information Each of the material domestic direct and indirect wholly-owned subsidiaries of the Company (the “Guarantor Subsidiaries”) has fully and unconditionally guaranteed, on a joint and several basis, to pay principal, premium, and interest with respect to the Notes. Each of the Guarantor Subsidiaries is “100% owned,” as defined by Rule 3-10(h)(1) of Regulation S-X . The guarantee of the Notes by a Guarantor Subsidiary will automatically terminate, and the obligations of such Guarantor Subsidiary under its guarantee of the Notes will be released: (a) in the event of any sale or other disposition of all or substantially all of the assets or all of the capital stock of any Subsidiary Guarantor, by way of merger, consolidation or otherwise; (b) upon designation of any Subsidiary Guarantor as an “unrestricted subsidiary” (as defined in the indenture governing the Notes (the “Indenture”); (c) upon defeasance or satisfaction and discharge of the Indenture; and (d) upon the release of such Subsidiary Guarantor's guarantees under all credit facilities of the Company (other than a release as a result of payment under or a discharge of such guarantee). The following supplemental condensed consolidating financial statements present condensed consolidating balance sheets as of March 31, 2020 and December 31, 2019 , condensed consolidating statements of income and other comprehensive income (loss) for the three months ended March 31, 2020 and 2019 , condensed consolidating statements of cash flows for the three months ended March 31, 2020 and 2019 , and reclassification and elimination entries necessary to consolidate the Parent and all of its subsidiaries. The condensed consolidating financial statements present investments in subsidiaries using the equity method of accounting. The “Parent” reflected in the accompanying supplemental guarantor information is the Company, who is also an obligor of the Notes. Condensed Consolidating Balance Sheets March 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.3 $ 41.3 $ — $ 41.6 Accounts receivable, net — 168.4 80.5 — 248.9 Inventories, net — 244.5 85.6 — 330.1 Receivable from affiliates 24.5 — — — 24.5 Prepaid and other current assets 0.9 47.1 37.0 — 85.0 Total current assets 25.4 460.3 244.4 — 730.1 Investments in subsidiaries 601.6 404.4 — (1,006.0 ) — Intercompany advances 521.6 50.5 178.0 (750.1 ) — Property, plant and equipment, net 4.0 138.7 91.1 — 233.8 Operating lease right-of-use assets 5.4 34.6 20.7 — 60.7 Goodwill — 68.0 38.9 — 106.9 Intangible assets, net — 54.3 33.5 — 87.8 Other long-term assets 70.6 7.9 4.9 — 83.4 Total assets $ 1,228.6 $ 1,218.7 $ 611.5 $ (1,756.1 ) $ 1,302.7 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ 0.3 $ 115.3 $ 46.1 $ — $ 161.7 Payable to affiliates — — 7.2 — 7.2 Current portion of long-term and short-term debt — 6.3 9.0 — 15.3 Current portion of operating lease liabilities 1.4 6.7 3.3 — 11.4 Accrued expenses and other 7.2 58.0 39.2 — 104.4 Total current liabilities 8.9 186.3 104.8 — 300.0 Long-term liabilities, less current portion: Debt 525.2 11.8 23.2 — 560.2 Long-term operating lease liabilities 4.0 28.8 17.7 — 50.5 Other long-term liabilities 23.3 27.0 6.5 — 56.8 Total long-term liabilities 552.5 67.6 47.4 — 667.5 Intercompany advances 332.0 398.9 19.2 (750.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 321.0 565.9 425.9 (991.8 ) 321.0 Noncontrolling interests 14.2 — 14.2 (14.2 ) 14.2 Total equity 335.2 565.9 440.1 (1,006.0 ) 335.2 Total liabilities and shareholder's equity $ 1,228.6 $ 1,218.7 $ 611.5 $ (1,756.1 ) $ 1,302.7 Condensed Consolidating Balance Sheets December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.4 $ 46.3 $ — $ 46.7 Accounts receivable, net — 168.0 93.3 — 261.3 Inventories, net — 240.7 86.5 — 327.2 Receivable from affiliates 24.1 — — — 24.1 Prepaid and other current assets 1.1 49.4 30.3 — 80.8 Total current assets 25.2 458.5 256.4 — 740.1 Investments in subsidiaries 590.0 415.9 — (1,005.9 ) — Intercompany advances 522.7 47.5 171.9 (742.1 ) — Property, plant and equipment, net 5.5 140.0 94.6 — 240.1 Operating lease right-of-use assets 5.8 35.3 23.2 — 64.3 Goodwill — 68.0 40.4 — 108.4 Intangible assets, net — 55.3 35.3 — 90.6 Other long-term assets 69.5 7.4 6.9 — 83.8 Total assets $ 1,218.7 $ 1,227.9 $ 628.7 $ (1,748.0 ) $ 1,327.3 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ 3.7 $ 117.1 $ 54.2 $ — $ 175.0 Payable to affiliates — — 7.1 — 7.1 Current portion of long-term and short-term debt — 6.4 10.4 — 16.8 Current portion of operating lease liabilities 1.4 6.8 3.7 — 11.9 Accrued expenses and other 8.8 56.7 36.0 — 101.5 Total current liabilities 13.9 187.0 111.4 — 312.3 Long-term liabilities, less current portion: Long-term debt 507.6 10.7 26.9 — 545.2 Long-term operating lease liabilities 4.4 30.8 18.4 — 53.6 Other long-term liabilities 23.8 23.6 11.0 — 58.4 Total long-term liabilities 535.8 65.1 56.3 — 657.2 Intercompany advances 311.2 421.1 9.8 (742.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 343.7 554.7 437.1 (991.8 ) 343.7 Noncontrolling interests 14.1 — 14.1 (14.1 ) 14.1 Total equity 357.8 554.7 451.2 (1,005.9 ) 357.8 Total liabilities and shareholder's equity $ 1,218.7 $ 1,227.9 $ 628.7 $ (1,748.0 ) $ 1,327.3 Consolidating Statements of Income (Loss) Three Months Ended March 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 264.7 $ 101.6 $ — $ 366.3 Cost of sales 0.8 225.2 86.4 — 312.4 Gross profit (0.8 ) 39.5 15.2 — 53.9 Selling, general and administrative expenses 6.2 25.9 8.6 — 40.7 Income (loss) from subsidiaries 13.1 3.6 — (16.7 ) — Operating income (loss) 6.1 17.2 6.6 (16.7 ) 13.2 Other components of pension income and other postretirement benefits expense, net 1.8 — — — 1.8 Interest expense, net (6.3 ) (0.2 ) (1.4 ) — (7.9 ) Income (loss) before income taxes 1.6 17.0 5.2 (16.7 ) 7.1 Income tax expense — (4.3 ) (1.2 ) — (5.5 ) Net income (loss) 1.6 12.7 4.0 (16.7 ) 1.6 Net (income) loss attributable to noncontrolling interests (0.1 ) — (0.1 ) 0.1 (0.1 ) Net income (loss) attributable to Park-Ohio Industries Inc. common shareholder $ 1.5 $ 12.7 $ 3.9 $ (16.6 ) $ 1.5 Other comprehensive (loss) income: Net income (loss) $ 1.6 $ 12.7 $ 4.0 $ (16.7 ) $ 1.6 Currency translation (16.6 ) — (16.6 ) 16.6 (16.6 ) Pension and OPEB activity, net of tax 0.5 — — — 0.5 Total comprehensive (loss) income, net of tax (14.5 ) 12.7 (12.6 ) (0.1 ) (14.5 ) Comprehensive (income) loss attributable to noncontrolling interest (0.1 ) — (0.1 ) 0.1 (0.1 ) Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder $ (14.6 ) $ 12.7 $ (12.7 ) $ — $ (14.6 ) Consolidating Statements of Income (Loss) and Comprehensive Income (Loss) Three Months Ended March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 306.5 $ 113.6 $ — $ 420.1 Cost of sales 0.7 260.9 93.2 — 354.8 Gross profit (0.7 ) 45.6 20.4 — 65.3 Selling, general and administrative expenses 6.2 26.0 10.5 — 42.7 Gain on sale of assets — — — — Income (loss) from subsidiaries 24.0 5.4 — (29.4 ) — Operating income (loss) 17.1 25.0 9.9 (29.4 ) 22.6 Other components of pension income and other postretirement benefits expense, net 1.3 — — — 1.3 Interest expense, net (6.6 ) — (1.6 ) — (8.2 ) Income (loss) before income taxes 11.8 25.0 8.3 (29.4 ) 15.7 Income tax expense — (1.8 ) (2.1 ) — (3.9 ) Net income (loss) 11.8 23.2 6.2 (29.4 ) 11.8 Net income attributable to noncontrolling interests (0.5 ) — (0.5 ) 0.5 (0.5 ) Net income (loss) attributable to Park-Ohio Industries Inc. common shareholder $ 11.3 $ 23.2 $ 5.7 $ (28.9 ) $ 11.3 Other comprehensive (loss) income: Net income (loss) $ 11.8 $ 23.2 $ 6.2 $ (29.4 ) $ 11.8 Currency translation 0.7 — 0.7 (0.7 ) 0.7 Pension and OPEB activity, net of tax 5.3 — — — 5.3 Total comprehensive (loss) income, net of tax 17.8 23.2 6.9 (30.1 ) 17.8 Comprehensive income attributable to noncontrolling interests (0.5 ) — (0.5 ) 0.5 (0.5 ) Comprehensive income (loss) attributable to Park-Ohio Industries Inc. common shareholder $ 17.3 $ 23.2 $ 6.4 $ (29.6 ) $ 17.3 Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (15.7 ) $ 13.5 $ 14.6 $ (16.5 ) $ (4.1 ) INVESTING ACTIVITIES Purchases of property, plant and equipment (0.2 ) (3.3 ) (1.4 ) — (4.9 ) Proceeds from sale of an asset 1.4 — — — 1.4 Net cash provided (used) by investing activities 1.2 (3.3 ) (1.4 ) — (3.5 ) FINANCING ACTIVITIES Intercompany account change 6.5 (11.2 ) (11.8 ) 16.5 — Proceeds from (payment on) revolving credit facility, net 17.5 — (2.0 ) — 15.5 Payments on term loans and other debt — — (2.3 ) — (2.3 ) Proceeds from term loans and other debt — — 0.2 — 0.2 Proceeds from (payments on) finance lease facilities, net — 0.9 (0.3 ) — 0.6 Dividends paid to Parent (9.5 ) — — — (9.5 ) Net cash provided (used) by financing activities 14.5 (10.3 ) (16.2 ) 16.5 4.5 Effect of exchange rate changes on cash — — (2.0 ) — (2.0 ) Decrease in cash and cash equivalents — (0.1 ) (5.0 ) — (5.1 ) Cash and cash equivalents at beginning of period — 0.4 46.3 — 46.7 Cash and cash equivalents at end of period $ — $ 0.3 $ 41.3 $ — $ 41.6 Condensed Consolidating Statements of Three Months Ended March 31, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (12.5 ) $ 10.6 $ 1.9 $ 5.4 $ 5.4 INVESTING ACTIVITIES Purchases of property, plant and equipment — (6.2 ) (4.4 ) — (10.6 ) Net cash used in investing activities — (6.2 ) (4.4 ) — (10.6 ) FINANCING ACTIVITIES Intercompany account change 11.2 (3.1 ) (2.7 ) (5.4 ) — Proceeds from (payment on) revolving credit facility, net 1.3 — — — 1.3 Payments on term loans and other debt — (0.9 ) (1.3 ) — (2.2 ) Proceeds from term loans and other debt — 0.6 0.5 — 1.1 Payments on finance leases, net — (1.4 ) (0.2 ) — (1.6 ) Dividend — — (0.3 ) — (0.3 ) Net cash provided (used) by financing activities 12.5 (4.8 ) (4.0 ) (5.4 ) (1.7 ) Effect of exchange rate changes on cash — — 0.1 — 0.1 Decrease in cash and cash equivalents — (0.4 ) (6.4 ) — (6.8 ) Cash and cash equivalents at beginning of period — 0.4 46.2 — 46.6 Cash and cash equivalents at end of period $ — $ — $ 39.8 $ — $ 39.8 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements include the accounts of Park-Ohio Industries, Inc. and its subsidiaries (collectively, “we,” “our” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. Park-Ohio Industries, Inc. is a wholly-owned subsidiary of Park-Ohio Holdings Corp. (“Holdings”). The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 . The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Accounting Pronouncements Adopted and Not Yet Adopted | New Accounting Pronouncements Accounting Pronouncements Adopted In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments,” which replaced the current incurred loss impairment model with a methodology that reflected expected credit losses. Under the new methodology, entities will measure expected credit losses on financial instruments held at amortized cost, including trade receivables, based on historical experience, current conditions and reasonable forecasts. The Company adopted this standard as of January 1, 2020. The adoption of the standard had an immaterial impact on the Company. For the three-month period ended March 31, 2020, the provision and write-offs were not material, and the allowance approximated $4.7 million as of March 31, 2020. Recent Accounting Pronouncements Not Yet Adopted In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate. Adoption of this guidance is required for interim and annual periods beginning after December 31, 2022. The Company is currently evaluating the expected impact of this standard. No other recently issued ASUs are expected to have a material impact on our results of operations, financial condition or liquidity. |
Segments | Our operating segments are defined as components of the enterprise for which separate financial information is available and evaluated on a regular basis by our chief operating decision maker to allocate resources and assess performance. For purposes of measuring business segment performance, the Company utilizes segment operating income, which is defined as revenues less expenses identifiable to the product lines within each segment. The Company does not allocate items that are non-operating; unusual in nature; or are corporate costs, which include but are not limited to executive and share-based compensation and corporate office costs. Segment operating income reconciles to consolidated income before income taxes by deducting corporate costs; certain non-cash and/or non-operating items; Other components of pension income and other postretirement benefits expense, net; and interest expense, net. |
Accrued Warranty Costs | The Company estimates warranty claims that may be incurred based on current and historical data of products sold. Actual warranty expense could differ from the estimates made by the Company based on product performance. |
Income Taxes | The Company’s tax provision for interim periods is determined using an estimate of its annual effective rate, adjusted for discrete items, if any, in each period. |
Commitments and Contingencies | The Company is subject to various pending and threatened legal proceedings arising in the ordinary course of business. The Company records a liability for loss contingencies in the consolidated financial statements when a loss is known or considered probable and the amount can be reasonably estimated. Our provisions are based on historical experience, current information and legal advice, and they may be adjusted in the future based on new developments. Estimating probable losses requires the analysis of multiple forecasted factors that often depend on judgments and potential actions by third parties. Although it is not possible to predict with certainty the ultimate outcome or cost of these matters, the Company believes they will not have a material adverse effect on our consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of revenue | We disaggregate our revenue by product line and geographic region of our customer, as we believe these best depict how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. See details in the tables below. Three Months Ended March 31, 2020 2019 (In millions) PRODUCT LINE Supply Technologies $ 121.9 $ 144.8 Engineered specialty fasteners and other products 18.9 20.5 Supply Technologies Segment 140.8 165.3 Fuel, rubber and plastic products 84.7 89.6 Aluminum products 43.5 48.7 Assembly Components Segment 128.2 138.3 Industrial equipment 66.1 80.6 Forged and machined products 31.2 35.9 Engineered Products Segment 97.3 116.5 Total revenues $ 366.3 $ 420.1 Supply Technologies Segment Assembly Components Segment Engineered Products Segment Total Revenues (In millions) Three Months Ended March 31, 2020 GEOGRAPHIC REGION United States $ 90.0 $ 90.7 $ 53.2 $ 233.9 Europe 23.7 4.2 15.7 43.6 Asia 9.5 4.3 15.8 29.6 Mexico 14.5 10.2 2.2 26.9 Canada 2.9 18.4 6.4 27.7 Other 0.2 0.4 4.0 4.6 Total $ 140.8 $ 128.2 $ 97.3 $ 366.3 Three Months Ended March 31, 2019 GEOGRAPHIC REGION United States $ 110.4 $ 101.7 $ 68.1 $ 280.2 Europe 26.5 4.3 20.4 51.2 Asia 11.3 5.2 14.9 31.4 Mexico 13.7 9.0 3.0 25.7 Canada 3.2 17.7 7.6 28.5 Other 0.2 0.4 2.5 3.1 Total $ 165.3 $ 138.3 $ 116.5 $ 420.1 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Results by business segment | Results by business segment were as follows: Three Months Ended March 31, 2020 2019 (In millions) Net sales: Supply Technologies $ 140.8 $ 165.3 Assembly Components 128.2 138.3 Engineered Products 97.3 116.5 $ 366.3 $ 420.1 Segment operating income: Supply Technologies $ 9.2 $ 13.1 Assembly Components 6.3 8.3 Engineered Products 3.8 8.1 Total segment operating income 19.3 29.5 Corporate costs (6.1 ) (6.9 ) Operating income 13.2 22.6 Other components of pension income and other postretirement benefits expense, net 1.8 1.3 Interest expense, net (7.9 ) (8.2 ) Income before income taxes $ 7.1 $ 15.7 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of inventory | Inventories, net consist of the following: March 31, 2020 December 31, 2019 (In millions) Raw materials and supplies $ 95.2 $ 92.6 Work in process 55.2 51.3 Finished goods 177.7 181.3 LIFO reserve 2.0 2.0 Inventories, net $ 330.1 $ 327.2 |
Accrued Warranty Costs (Tables)
Accrued Warranty Costs (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Changes in product warranty liability | The following table presents changes in the Company’s product warranty liability for the three months ended March 31, 2020 and 2019 : Three Months Ended March 31, 2020 2019 (In millions) Beginning balance $ 6.4 $ 6.2 Claims paid (0.2 ) (0.8 ) Warranty expense 0.6 1.3 Ending balance $ 6.8 $ 6.7 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Debt consists of the following: Carrying Value at Maturity Date Interest Rate at March 31, 2020 March 31, 2020 December 31, 2019 (In millions) Senior Notes April 15, 2027 6.625 % $ 350.0 $ 350.0 Revolving credit facility November 26, 2024 2.12 % 188.2 173.2 Industrial Equipment Group European Facilities December 21, 2021 3.25 % 4.5 4.6 Finance Leases Various Various 17.9 17.2 Other Various Various 21.1 23.5 Total debt 581.7 568.5 Less current portion of long-term and short-term debt (15.3 ) (16.8 ) Less unamortized debt issuance costs (6.2 ) (6.5 ) Total long-term debt, net $ 560.2 $ 545.2 |
Fair value of debt | The following table represents fair value information of the Notes, classified as Level 1 using estimated quoted market prices. March 31, 2020 December 31, 2019 (In millions) Carrying amount $ 350.0 $ 350.0 Fair value $ 281.8 $ 358.3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Lease Assets and Liabilities | During the three months ended March 31, 2020 , the Company obtained right-of-use assets in exchange for new operating lease liabilities of $1.5 million . Balance Sheet as of March 31, 2020 and December 31, 2019 Classification on the Balance Sheet March 31, 2020 December 31, 2019 Assets (in millions) Operating lease assets Operating lease right-of-use assets $ 60.7 $ 64.3 Finance lease assets Property, plant and equipment, net 28.2 27.1 Total lease assets $ 88.9 $ 91.4 Liabilities Current Operating Current portion of operating lease liabilities $ 11.4 $ 11.9 Finance Current portion of long-term debt and short-term debt 6.7 7.0 Noncurrent Operating Long-term operating lease liabilities 50.5 53.6 Finance Long-term debt 11.2 10.2 Total lease liabilities $ 79.8 $ 82.7 Weighted-average remaining lease term (in years) Operating leases 6.9 7.1 Finance leases 4.0 3.9 Weighted-average discount rate Operating leases 5.3 % 5.4 % Finance leases 3.9 % 3.7 % |
Lease Costs | Cash Flow Information March 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities (in millions) Operating cash flows for operating leases $ (3.9 ) $ (4.4 ) Operating cash flows for finance leases $ (0.2 ) $ (0.2 ) Financing cash flows for finance leases $ 0.6 $ (1.6 ) Operating lease expense is recognized on a straight-line basis over the lease term, with variable payments recognized in the period those payments are incurred. Three Months Ended March 31, 2020 2019 Finance lease expense (in millions) Amortization of right-of-use assets $ 1.1 $ 1.0 Interest on lease liabilities 0.2 0.2 Operating lease expense 3.9 4.6 Other lease expense (1) 1.8 1.0 Total lease expense $ 7.0 $ 6.8 (1) - Other lease expense includes variable lease costs and short-term lease costs. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted share and performance share activity | A summary of Holdings' restricted share activity for the three months ended March 31, 2020 is as follows: 2020 Time-Based Performance-Based Number of Shares Weighted Average Number of Shares Weighted Average (In whole shares) (In whole shares) Outstanding - beginning of year 471,634 $ 32.06 50,000 $ 32.55 Granted 6,000 35.13 — — Vested (15,667 ) 36.83 — — Canceled or expired (5,000 ) 37.55 — — Outstanding - end of period 456,967 $ 31.96 50,000 $ 32.55 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Components of net periodic benefit cost | The components of net periodic benefit (income) costs recognized during interim periods were as follows: Pension Benefits Postretirement Benefits Three Months Ended March 31, Three Months Ended March 31, 2020 2019 2020 2019 (In millions) Service costs $ 1.1 $ 0.9 $ — $ — Interest costs 0.5 0.7 — 0.1 Expected return on plan assets (2.9 ) (2.7 ) — — Recognized net actuarial loss 0.5 0.6 0.1 — Net periodic benefit (income) expense $ (0.8 ) $ (0.5 ) $ 0.1 $ 0.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Changes in accumulated comprehensive loss | The components of and changes in accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 were as follows: Cumulative Translation Adjustment Pension and Postretirement Benefits Total Cumulative Translation Adjustment Pension and Postretirement Benefits Total (In millions) Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Beginning balance $ (22.4 ) $ (14.6 ) $ (37.0 ) $ (21.3 ) $ (19.6 ) $ (40.9 ) Currency translation (a) (16.6 ) — (16.6 ) 0.7 — 0.7 Pension and OPEB activity, net of tax — 0.5 0.5 — 5.3 5.3 Ending balance $ (39.0 ) $ (14.1 ) $ (53.1 ) $ (20.6 ) $ (14.3 ) $ (34.9 ) (a) No income taxes were provided on currency translation as foreign earnings are considered permanently reinvested. |
Supplemental Guarantor Inform_2
Supplemental Guarantor Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Guarantor Information [Abstract] | |
Condensed consolidating balance sheet | Condensed Consolidating Balance Sheets March 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.3 $ 41.3 $ — $ 41.6 Accounts receivable, net — 168.4 80.5 — 248.9 Inventories, net — 244.5 85.6 — 330.1 Receivable from affiliates 24.5 — — — 24.5 Prepaid and other current assets 0.9 47.1 37.0 — 85.0 Total current assets 25.4 460.3 244.4 — 730.1 Investments in subsidiaries 601.6 404.4 — (1,006.0 ) — Intercompany advances 521.6 50.5 178.0 (750.1 ) — Property, plant and equipment, net 4.0 138.7 91.1 — 233.8 Operating lease right-of-use assets 5.4 34.6 20.7 — 60.7 Goodwill — 68.0 38.9 — 106.9 Intangible assets, net — 54.3 33.5 — 87.8 Other long-term assets 70.6 7.9 4.9 — 83.4 Total assets $ 1,228.6 $ 1,218.7 $ 611.5 $ (1,756.1 ) $ 1,302.7 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ 0.3 $ 115.3 $ 46.1 $ — $ 161.7 Payable to affiliates — — 7.2 — 7.2 Current portion of long-term and short-term debt — 6.3 9.0 — 15.3 Current portion of operating lease liabilities 1.4 6.7 3.3 — 11.4 Accrued expenses and other 7.2 58.0 39.2 — 104.4 Total current liabilities 8.9 186.3 104.8 — 300.0 Long-term liabilities, less current portion: Debt 525.2 11.8 23.2 — 560.2 Long-term operating lease liabilities 4.0 28.8 17.7 — 50.5 Other long-term liabilities 23.3 27.0 6.5 — 56.8 Total long-term liabilities 552.5 67.6 47.4 — 667.5 Intercompany advances 332.0 398.9 19.2 (750.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 321.0 565.9 425.9 (991.8 ) 321.0 Noncontrolling interests 14.2 — 14.2 (14.2 ) 14.2 Total equity 335.2 565.9 440.1 (1,006.0 ) 335.2 Total liabilities and shareholder's equity $ 1,228.6 $ 1,218.7 $ 611.5 $ (1,756.1 ) $ 1,302.7 Condensed Consolidating Balance Sheets December 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Reclassifications/ Eliminations Consolidated (In millions) ASSETS Current assets: Cash and cash equivalents $ — $ 0.4 $ 46.3 $ — $ 46.7 Accounts receivable, net — 168.0 93.3 — 261.3 Inventories, net — 240.7 86.5 — 327.2 Receivable from affiliates 24.1 — — — 24.1 Prepaid and other current assets 1.1 49.4 30.3 — 80.8 Total current assets 25.2 458.5 256.4 — 740.1 Investments in subsidiaries 590.0 415.9 — (1,005.9 ) — Intercompany advances 522.7 47.5 171.9 (742.1 ) — Property, plant and equipment, net 5.5 140.0 94.6 — 240.1 Operating lease right-of-use assets 5.8 35.3 23.2 — 64.3 Goodwill — 68.0 40.4 — 108.4 Intangible assets, net — 55.3 35.3 — 90.6 Other long-term assets 69.5 7.4 6.9 — 83.8 Total assets $ 1,218.7 $ 1,227.9 $ 628.7 $ (1,748.0 ) $ 1,327.3 LIABILITIES AND SHAREHOLDER'S EQUITY Current liabilities: Trade accounts payable $ 3.7 $ 117.1 $ 54.2 $ — $ 175.0 Payable to affiliates — — 7.1 — 7.1 Current portion of long-term and short-term debt — 6.4 10.4 — 16.8 Current portion of operating lease liabilities 1.4 6.8 3.7 — 11.9 Accrued expenses and other 8.8 56.7 36.0 — 101.5 Total current liabilities 13.9 187.0 111.4 — 312.3 Long-term liabilities, less current portion: Long-term debt 507.6 10.7 26.9 — 545.2 Long-term operating lease liabilities 4.4 30.8 18.4 — 53.6 Other long-term liabilities 23.8 23.6 11.0 — 58.4 Total long-term liabilities 535.8 65.1 56.3 — 657.2 Intercompany advances 311.2 421.1 9.8 (742.1 ) — Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity 343.7 554.7 437.1 (991.8 ) 343.7 Noncontrolling interests 14.1 — 14.1 (14.1 ) 14.1 Total equity 357.8 554.7 451.2 (1,005.9 ) 357.8 Total liabilities and shareholder's equity $ 1,218.7 $ 1,227.9 $ 628.7 $ (1,748.0 ) $ 1,327.3 |
Consolidating statement of operations | Consolidating Statements of Income (Loss) Three Months Ended March 31, 2020 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 264.7 $ 101.6 $ — $ 366.3 Cost of sales 0.8 225.2 86.4 — 312.4 Gross profit (0.8 ) 39.5 15.2 — 53.9 Selling, general and administrative expenses 6.2 25.9 8.6 — 40.7 Income (loss) from subsidiaries 13.1 3.6 — (16.7 ) — Operating income (loss) 6.1 17.2 6.6 (16.7 ) 13.2 Other components of pension income and other postretirement benefits expense, net 1.8 — — — 1.8 Interest expense, net (6.3 ) (0.2 ) (1.4 ) — (7.9 ) Income (loss) before income taxes 1.6 17.0 5.2 (16.7 ) 7.1 Income tax expense — (4.3 ) (1.2 ) — (5.5 ) Net income (loss) 1.6 12.7 4.0 (16.7 ) 1.6 Net (income) loss attributable to noncontrolling interests (0.1 ) — (0.1 ) 0.1 (0.1 ) Net income (loss) attributable to Park-Ohio Industries Inc. common shareholder $ 1.5 $ 12.7 $ 3.9 $ (16.6 ) $ 1.5 Other comprehensive (loss) income: Net income (loss) $ 1.6 $ 12.7 $ 4.0 $ (16.7 ) $ 1.6 Currency translation (16.6 ) — (16.6 ) 16.6 (16.6 ) Pension and OPEB activity, net of tax 0.5 — — — 0.5 Total comprehensive (loss) income, net of tax (14.5 ) 12.7 (12.6 ) (0.1 ) (14.5 ) Comprehensive (income) loss attributable to noncontrolling interest (0.1 ) — (0.1 ) 0.1 (0.1 ) Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder $ (14.6 ) $ 12.7 $ (12.7 ) $ — $ (14.6 ) Consolidating Statements of Income (Loss) and Comprehensive Income (Loss) Three Months Ended March 31, 2019 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Net sales $ — $ 306.5 $ 113.6 $ — $ 420.1 Cost of sales 0.7 260.9 93.2 — 354.8 Gross profit (0.7 ) 45.6 20.4 — 65.3 Selling, general and administrative expenses 6.2 26.0 10.5 — 42.7 Gain on sale of assets — — — — Income (loss) from subsidiaries 24.0 5.4 — (29.4 ) — Operating income (loss) 17.1 25.0 9.9 (29.4 ) 22.6 Other components of pension income and other postretirement benefits expense, net 1.3 — — — 1.3 Interest expense, net (6.6 ) — (1.6 ) — (8.2 ) Income (loss) before income taxes 11.8 25.0 8.3 (29.4 ) 15.7 Income tax expense — (1.8 ) (2.1 ) — (3.9 ) Net income (loss) 11.8 23.2 6.2 (29.4 ) 11.8 Net income attributable to noncontrolling interests (0.5 ) — (0.5 ) 0.5 (0.5 ) Net income (loss) attributable to Park-Ohio Industries Inc. common shareholder $ 11.3 $ 23.2 $ 5.7 $ (28.9 ) $ 11.3 Other comprehensive (loss) income: Net income (loss) $ 11.8 $ 23.2 $ 6.2 $ (29.4 ) $ 11.8 Currency translation 0.7 — 0.7 (0.7 ) 0.7 Pension and OPEB activity, net of tax 5.3 — — — 5.3 Total comprehensive (loss) income, net of tax 17.8 23.2 6.9 (30.1 ) 17.8 Comprehensive income attributable to noncontrolling interests (0.5 ) — (0.5 ) 0.5 (0.5 ) Comprehensive income (loss) attributable to Park-Ohio Industries Inc. common shareholder $ 17.3 $ 23.2 $ 6.4 $ (29.6 ) $ 17.3 |
Condensed consolidating statement of cash flows | Condensed Consolidating Statements of Cash Flows Three Months Ended March 31, 2020 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (15.7 ) $ 13.5 $ 14.6 $ (16.5 ) $ (4.1 ) INVESTING ACTIVITIES Purchases of property, plant and equipment (0.2 ) (3.3 ) (1.4 ) — (4.9 ) Proceeds from sale of an asset 1.4 — — — 1.4 Net cash provided (used) by investing activities 1.2 (3.3 ) (1.4 ) — (3.5 ) FINANCING ACTIVITIES Intercompany account change 6.5 (11.2 ) (11.8 ) 16.5 — Proceeds from (payment on) revolving credit facility, net 17.5 — (2.0 ) — 15.5 Payments on term loans and other debt — — (2.3 ) — (2.3 ) Proceeds from term loans and other debt — — 0.2 — 0.2 Proceeds from (payments on) finance lease facilities, net — 0.9 (0.3 ) — 0.6 Dividends paid to Parent (9.5 ) — — — (9.5 ) Net cash provided (used) by financing activities 14.5 (10.3 ) (16.2 ) 16.5 4.5 Effect of exchange rate changes on cash — — (2.0 ) — (2.0 ) Decrease in cash and cash equivalents — (0.1 ) (5.0 ) — (5.1 ) Cash and cash equivalents at beginning of period — 0.4 46.3 — 46.7 Cash and cash equivalents at end of period $ — $ 0.3 $ 41.3 $ — $ 41.6 Condensed Consolidating Statements of Three Months Ended March 31, 2019 Parent Combined Guarantor Subsidiaries Combined Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) OPERATING ACTIVITIES Net cash (used) provided by operating activities $ (12.5 ) $ 10.6 $ 1.9 $ 5.4 $ 5.4 INVESTING ACTIVITIES Purchases of property, plant and equipment — (6.2 ) (4.4 ) — (10.6 ) Net cash used in investing activities — (6.2 ) (4.4 ) — (10.6 ) FINANCING ACTIVITIES Intercompany account change 11.2 (3.1 ) (2.7 ) (5.4 ) — Proceeds from (payment on) revolving credit facility, net 1.3 — — — 1.3 Payments on term loans and other debt — (0.9 ) (1.3 ) — (2.2 ) Proceeds from term loans and other debt — 0.6 0.5 — 1.1 Payments on finance leases, net — (1.4 ) (0.2 ) — (1.6 ) Dividend — — (0.3 ) — (0.3 ) Net cash provided (used) by financing activities 12.5 (4.8 ) (4.0 ) (5.4 ) (1.7 ) Effect of exchange rate changes on cash — — 0.1 — 0.1 Decrease in cash and cash equivalents — (0.4 ) (6.4 ) — (6.8 ) Cash and cash equivalents at beginning of period — 0.4 46.2 — 46.6 Cash and cash equivalents at end of period $ — $ — $ 39.8 $ — $ 39.8 |
New Accounting Pronouncements (
New Accounting Pronouncements (Narrative) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Accounting Changes and Error Corrections [Abstract] | |
Allowance for credit loss | $ 4.7 |
Revenue (Summary of Disaggregat
Revenue (Summary of Disaggregation of Revenue by Product Line) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | $ 366.3 | $ 420.1 |
Supply Technologies Segment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 140.8 | 165.3 |
Supply Technologies Segment | Supply Technologies | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 121.9 | 144.8 |
Supply Technologies Segment | Engineered specialty fasteners and other products | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 18.9 | 20.5 |
Assembly Components Segment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 128.2 | 138.3 |
Assembly Components Segment | Fuel, rubber and plastic products | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 84.7 | 89.6 |
Assembly Components Segment | Aluminum products | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 43.5 | 48.7 |
Engineered Products Segment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 97.3 | 116.5 |
Engineered Products Segment | Industrial equipment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 66.1 | 80.6 |
Engineered Products Segment | Forged and machined products | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | $ 31.2 | $ 35.9 |
Revenue (Summary of Disaggreg_2
Revenue (Summary of Disaggregation of Revenue by Geographical Area) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | $ 366.3 | $ 420.1 |
United States | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 233.9 | 280.2 |
Europe | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 43.6 | 51.2 |
Asia | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 29.6 | 31.4 |
Mexico | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 26.9 | 25.7 |
Canada | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 27.7 | 28.5 |
Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 4.6 | 3.1 |
Supply Technologies Segment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 140.8 | 165.3 |
Supply Technologies Segment | United States | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 90 | 110.4 |
Supply Technologies Segment | Europe | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 23.7 | 26.5 |
Supply Technologies Segment | Asia | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 9.5 | 11.3 |
Supply Technologies Segment | Mexico | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 14.5 | 13.7 |
Supply Technologies Segment | Canada | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 2.9 | 3.2 |
Supply Technologies Segment | Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 0.2 | 0.2 |
Assembly Components | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 128.2 | 138.3 |
Assembly Components | United States | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 90.7 | 101.7 |
Assembly Components | Europe | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 4.2 | 4.3 |
Assembly Components | Asia | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 4.3 | 5.2 |
Assembly Components | Mexico | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 10.2 | 9 |
Assembly Components | Canada | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 18.4 | 17.7 |
Assembly Components | Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 0.4 | 0.4 |
Engineered Products Segment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 97.3 | 116.5 |
Engineered Products Segment | United States | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 53.2 | 68.1 |
Engineered Products Segment | Europe | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 15.7 | 20.4 |
Engineered Products Segment | Asia | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 15.8 | 14.9 |
Engineered Products Segment | Mexico | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 2.2 | 3 |
Engineered Products Segment | Canada | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | 6.4 | 7.6 |
Engineered Products Segment | Other | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total revenues | $ 4 | $ 2.5 |
Segments (Schedule of Segment I
Segments (Schedule of Segment Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net sales: | ||
Net sales | $ 366.3 | $ 420.1 |
Segment operating income: | ||
Operating income | 13.2 | 22.6 |
Other components of pension income and other postretirement benefits expense, net | 1.8 | 1.3 |
Interest expense, net | (7.9) | (8.2) |
Income (loss) before income taxes | 7.1 | 15.7 |
Supply Technologies | ||
Net sales: | ||
Net sales | 140.8 | 165.3 |
Assembly Components | ||
Net sales: | ||
Net sales | 128.2 | 138.3 |
Engineered Products | ||
Net sales: | ||
Net sales | 97.3 | 116.5 |
Operating Segments | ||
Net sales: | ||
Net sales | 366.3 | 420.1 |
Segment operating income: | ||
Operating income | 19.3 | 29.5 |
Operating Segments | Supply Technologies | ||
Net sales: | ||
Net sales | 140.8 | 165.3 |
Segment operating income: | ||
Operating income | 9.2 | 13.1 |
Operating Segments | Assembly Components | ||
Net sales: | ||
Net sales | 128.2 | 138.3 |
Segment operating income: | ||
Operating income | 6.3 | 8.3 |
Operating Segments | Engineered Products | ||
Net sales: | ||
Net sales | 97.3 | 116.5 |
Segment operating income: | ||
Operating income | 3.8 | 8.1 |
Segment Reconciling Items | ||
Segment operating income: | ||
Operating income | 13.2 | 22.6 |
Corporate costs | (6.1) | (6.9) |
Other components of pension income and other postretirement benefits expense, net | 1.8 | 1.3 |
Interest expense, net | $ (7.9) | $ (8.2) |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - Erie Press Systems (EP) - USD ($) $ in Millions | May 31, 2019 | Mar. 31, 2020 |
Business Acquisition [Line Items] | ||
Purchase price | $ 9.1 | |
Contingent consideration, range of outcomes, high | $ 1 | |
Contingent consideration liability | $ 1 |
Inventories (Components of Inve
Inventories (Components of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Components of inventory | ||
Raw materials and supplies | $ 95.2 | $ 92.6 |
Work in process | 55.2 | 51.3 |
Finished goods | 177.7 | 181.3 |
LIFO reserve | 2 | 2 |
Inventories, net | $ 330.1 | $ 327.2 |
Accrued Warranty Costs (Details
Accrued Warranty Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes in product warranty liability | ||
Balance at beginning of period | $ 6.4 | $ 6.2 |
Claims paid | (0.2) | (0.8) |
Warranty expense | 0.6 | 1.3 |
Balance at end of period | $ 6.8 | $ 6.7 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 5.5 | $ 3.9 |
Effective tax rate | 77.00% | 25.00% |
Financing Arrangements (Schedul
Financing Arrangements (Schedule of Long-term Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Total debt | $ 581.7 | $ 568.5 |
Less current portion of long-term and short-term debt | (15.3) | (16.8) |
Less unamortized debt issuance costs | (6.2) | (6.5) |
Total long-term debt, net | $ 560.2 | 545.2 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 2.12% | |
Total debt | $ 188.2 | 173.2 |
Industrial Equipment Group European Facilities | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 3.25% | |
Total debt | $ 4.5 | 4.6 |
Finance Leases | ||
Debt Instrument [Line Items] | ||
Total debt | 17.9 | 17.2 |
Other | ||
Debt Instrument [Line Items] | ||
Total debt | $ 21.1 | 23.5 |
Senior Notes 6.625% Due 2027 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 6.625% | |
Total debt | $ 350 | $ 350 |
Financing Arrangements (Narrati
Financing Arrangements (Narrative) (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2017 | Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||||
Percentage ownership | 100.00% | ||||
Finance lease agreement, maximum borrowing capacity | $ 50,000,000 | ||||
Arkansas Development Finance Authority | Southwest Steel Processing LLC | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 11,000,000 | ||||
Amount drawn | 8,100,000 | ||||
Machinery and Equipment | |||||
Line of Credit Facility [Line Items] | |||||
Finance lease liability | $ 17,900,000 | ||||
Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 2.12% | ||||
Industrial Equipment Group European Facilities | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 3.25% | ||||
Industrial Equipment Group European Facilities | Line of Credit | Banco Bilbao Vizcaya Argentaria, S.A. | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 27,400,000 | ||||
Amount drawn | 4,500,000 | ||||
Seventh Amendment Credit Agreement | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 350,000,000 | ||||
Seventh Amendment Credit Agreement | Revolving Credit Facility Canadian Sub-Limit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 35,000,000 | ||||
Seventh Amendment Credit Agreement | Revolving Credit Facility European Sub-Limit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 25,000,000 | ||||
Amendment No. 1 to Seventh Amended and Restated Credit Agreement | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 375,000,000 | ||||
Option to increase capacity | 100,000,000 | ||||
Amendment No. 1 to Seventh Amended and Restated Credit Agreement | Revolving Credit Facility Canadian Sub-Limit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 40,000,000 | ||||
Amendment No. 1 to Seventh Amended and Restated Credit Agreement | Revolving Credit Facility European Sub-Limit | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 30,000,000 | ||||
Senior Notes due 2027 | Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Aggregate principal amount | $ 350,000,000 | ||||
Stated interest rate | 6.625% | ||||
Financing Agreement | Revolving credit facility | Line of Credit | Banco Bilbao Vizcaya Argentaria, S.A. | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 11,000,000 | ||||
Amount drawn | 0 | ||||
Park-Ohio Industries, Inc. | Amendment No. 1 to Seventh Amended and Restated Credit Agreement | Revolving credit facility | |||||
Line of Credit Facility [Line Items] | |||||
Bank guarantees | $ 31,500,000 | $ 33,800,000 |
Financing Arrangements (Fair Va
Financing Arrangements (Fair Value of Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | $ 581.7 | $ 568.5 |
Carrying amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying amount | 350 | 350 |
Level 1 | Fair value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value | $ 281.8 | $ 358.3 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases [Abstract] | |
Right-of-use asset | $ 1.5 |
Leases - Position of Leases (De
Leases - Position of Leases (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Operating lease assets | $ 60.7 | $ 64.3 |
Finance lease assets | 28.2 | 27.1 |
Total lease assets | 88.9 | 91.4 |
Current | ||
Operating | 11.4 | 11.9 |
Finance | 6.7 | 7 |
Noncurrent | ||
Operating | 50.5 | 53.6 |
Finance | 11.2 | 10.2 |
Total lease liabilities | $ 79.8 | $ 82.7 |
Weighted-average remaining lease term (in years) | ||
Operating leases | 6 years 11 months | 7 years 28 days |
Finance leases | 4 years | 3 years 11 months |
Weighted-average discount rate | ||
Operating leases | 5.30% | 5.40% |
Finance leases | 3.90% | 3.70% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finance lease cost | ||
Amortization of right-of-use assets | $ 1.1 | $ 1 |
Interest on lease liabilities | 0.2 | 0.2 |
Operating lease expense | 3.9 | 4.6 |
Other lease expense | 1.8 | 1 |
Total lease expense | $ 7 | $ 6.8 |
Leases - Cash Flows (Details)
Leases - Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows for operating leases | $ (3.9) | $ (4.4) |
Operating cash flows for finance leases | (0.2) | (0.2) |
Financing cash flows for finance leases | $ 0.6 | |
Financing cash flows for finance leases | $ (1.6) |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Restricted Share Activity) (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Time-Based | |
Number of Shares | |
Outstanding - beginning of years (in shares) | shares | 471,634 |
Granted (in shares) | shares | 6,000 |
Vested (in shares) | shares | (15,667) |
Canceled or expired (in shares) | shares | (5,000) |
Outstanding - end of periods (in shares) | shares | 456,967 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 32.06 |
Granted (in dollars per share) | $ / shares | 35.13 |
Vested (in dollars per share) | $ / shares | 36.83 |
Canceled or expired (in dollars per share) | $ / shares | 37.55 |
Outstanding - end of year (in dollars per share) | $ / shares | $ 31.96 |
Performance-Based | |
Number of Shares | |
Outstanding - beginning of years (in shares) | shares | 50,000 |
Granted (in shares) | shares | 0 |
Vested (in shares) | shares | 0 |
Canceled or expired (in shares) | shares | 0 |
Outstanding - end of periods (in shares) | shares | 50,000 |
Weighted Average Grant Date Fair Value | |
Outstanding - beginning of year (in dollars per share) | $ / shares | $ 32.55 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 0 |
Canceled or expired (in dollars per share) | $ / shares | 0 |
Outstanding - end of year (in dollars per share) | $ / shares | $ 32.55 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Stock-based compensation expense | $ 1.4 | $ 1.9 |
Unrecognized compensation cost related to non-vested stock-based compensation | $ 7.3 | |
Weighted average period | 2 years 2 months |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Mar. 31, 2020plaintiffclaim | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of pending cases | claim | 119 |
Number of plaintiffs | plaintiff | 222 |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Components of net periodic benefit) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Components of net periodic benefit cost | ||
Service costs | $ 1.1 | $ 0.9 |
Interest costs | 0.5 | 0.7 |
Expected return on plan assets | (2.9) | (2.7) |
Recognized net actuarial loss | 0.5 | 0.6 |
Net periodic benefit (income) expense | (0.8) | (0.5) |
Postretirement Benefits | ||
Components of net periodic benefit cost | ||
Service costs | 0 | 0 |
Interest costs | 0 | 0.1 |
Expected return on plan assets | 0 | 0 |
Recognized net actuarial loss | 0.1 | 0 |
Net periodic benefit (income) expense | $ 0.1 | $ 0.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Components of accumulated comprehensive loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | $ 357.8 | $ 317.9 |
Currency translation | (16.6) | 0.7 |
Pension and OPEB activity, net of tax | 0.5 | 5.3 |
Balance at end of period | 335.2 | 337.3 |
Cumulative Translation Adjustment | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (22.4) | (21.3) |
Currency translation | (16.6) | 0.7 |
Pension and OPEB activity, net of tax | 0 | 0 |
Balance at end of period | (39) | (20.6) |
Pension and Postretirement Benefits | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (14.6) | (19.6) |
Currency translation | 0 | 0 |
Pension and OPEB activity, net of tax | 0.5 | 5.3 |
Balance at end of period | (14.1) | (14.3) |
Total | ||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Balance at beginning of period | (37) | (40.9) |
Balance at end of period | $ (53.1) | $ (34.9) |
Supplemental Guarantor Inform_3
Supplemental Guarantor Information (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||||
Cash and cash equivalents | $ 41.6 | $ 46.7 | ||
Accounts receivable, net | 248.9 | 261.3 | ||
Inventories, net | 330.1 | 327.2 | ||
Receivable from affiliates | 24.5 | 24.1 | ||
Prepaid and other current assets | 85 | 80.8 | ||
Total current assets | 730.1 | 740.1 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany advances | 0 | 0 | ||
Property, plant and equipment, net | 233.8 | 240.1 | ||
Operating lease right-of-use assets | 60.7 | 64.3 | ||
Goodwill | 106.9 | 108.4 | ||
Intangible assets, net | 87.8 | 90.6 | ||
Other long-term assets | 83.4 | 83.8 | ||
Total assets | 1,302.7 | 1,327.3 | ||
Current liabilities: | ||||
Trade accounts payable | 161.7 | 175 | ||
Payable to affiliates | 7.2 | 7.1 | ||
Current portion of long-term debt and short-term debt | 15.3 | 16.8 | ||
Current portion of operating lease liabilities | 11.4 | 11.9 | ||
Accrued expenses and other | 104.4 | 101.5 | ||
Total current liabilities | 300 | 312.3 | ||
Long-term liabilities, less current portion: | ||||
Long-term debt | 560.2 | 545.2 | ||
Long-term operating lease liabilities | 50.5 | 53.6 | ||
Other long-term liabilities | 56.8 | 58.4 | ||
Total long-term liabilities | 667.5 | 657.2 | ||
Intercompany advances | 0 | 0 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 321 | 343.7 | ||
Noncontrolling interests | 14.2 | 14.1 | ||
Total equity | 335.2 | 357.8 | $ 337.3 | $ 317.9 |
Total liabilities and shareholder's equity | 1,302.7 | 1,327.3 | ||
Reportable Legal Entities | Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Receivable from affiliates | 24.5 | 24.1 | ||
Prepaid and other current assets | 0.9 | 1.1 | ||
Total current assets | 25.4 | 25.2 | ||
Investments in subsidiaries | 601.6 | 590 | ||
Intercompany advances | 521.6 | 522.7 | ||
Property, plant and equipment, net | 4 | 5.5 | ||
Operating lease right-of-use assets | 5.4 | 5.8 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 70.6 | 69.5 | ||
Total assets | 1,228.6 | 1,218.7 | ||
Current liabilities: | ||||
Trade accounts payable | 0.3 | 3.7 | ||
Payable to affiliates | 0 | 0 | ||
Current portion of long-term debt and short-term debt | 0 | 0 | ||
Current portion of operating lease liabilities | 1.4 | 1.4 | ||
Accrued expenses and other | 7.2 | 8.8 | ||
Total current liabilities | 8.9 | 13.9 | ||
Long-term liabilities, less current portion: | ||||
Long-term debt | 525.2 | 507.6 | ||
Long-term operating lease liabilities | 4 | 4.4 | ||
Other long-term liabilities | 23.3 | 23.8 | ||
Total long-term liabilities | 552.5 | 535.8 | ||
Intercompany advances | 332 | 311.2 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 321 | 343.7 | ||
Noncontrolling interests | 14.2 | 14.1 | ||
Total equity | 335.2 | 357.8 | ||
Total liabilities and shareholder's equity | 1,228.6 | 1,218.7 | ||
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 0.3 | 0.4 | ||
Accounts receivable, net | 168.4 | 168 | ||
Inventories, net | 244.5 | 240.7 | ||
Receivable from affiliates | 0 | 0 | ||
Prepaid and other current assets | 47.1 | 49.4 | ||
Total current assets | 460.3 | 458.5 | ||
Investments in subsidiaries | 404.4 | 415.9 | ||
Intercompany advances | 50.5 | 47.5 | ||
Property, plant and equipment, net | 138.7 | 140 | ||
Operating lease right-of-use assets | 34.6 | 35.3 | ||
Goodwill | 68 | 68 | ||
Intangible assets, net | 54.3 | 55.3 | ||
Other long-term assets | 7.9 | 7.4 | ||
Total assets | 1,218.7 | 1,227.9 | ||
Current liabilities: | ||||
Trade accounts payable | 115.3 | 117.1 | ||
Payable to affiliates | 0 | 0 | ||
Current portion of long-term debt and short-term debt | 6.3 | 6.4 | ||
Current portion of operating lease liabilities | 6.7 | 6.8 | ||
Accrued expenses and other | 58 | 56.7 | ||
Total current liabilities | 186.3 | 187 | ||
Long-term liabilities, less current portion: | ||||
Long-term debt | 11.8 | 10.7 | ||
Long-term operating lease liabilities | 28.8 | 30.8 | ||
Other long-term liabilities | 27 | 23.6 | ||
Total long-term liabilities | 67.6 | 65.1 | ||
Intercompany advances | 398.9 | 421.1 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 565.9 | 554.7 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 565.9 | 554.7 | ||
Total liabilities and shareholder's equity | 1,218.7 | 1,227.9 | ||
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 41.3 | 46.3 | ||
Accounts receivable, net | 80.5 | 93.3 | ||
Inventories, net | 85.6 | 86.5 | ||
Receivable from affiliates | 0 | 0 | ||
Prepaid and other current assets | 37 | 30.3 | ||
Total current assets | 244.4 | 256.4 | ||
Investments in subsidiaries | 0 | 0 | ||
Intercompany advances | 178 | 171.9 | ||
Property, plant and equipment, net | 91.1 | 94.6 | ||
Operating lease right-of-use assets | 20.7 | 23.2 | ||
Goodwill | 38.9 | 40.4 | ||
Intangible assets, net | 33.5 | 35.3 | ||
Other long-term assets | 4.9 | 6.9 | ||
Total assets | 611.5 | 628.7 | ||
Current liabilities: | ||||
Trade accounts payable | 46.1 | 54.2 | ||
Payable to affiliates | 7.2 | 7.1 | ||
Current portion of long-term debt and short-term debt | 9 | 10.4 | ||
Current portion of operating lease liabilities | 3.3 | 3.7 | ||
Accrued expenses and other | 39.2 | 36 | ||
Total current liabilities | 104.8 | 111.4 | ||
Long-term liabilities, less current portion: | ||||
Long-term debt | 23.2 | 26.9 | ||
Long-term operating lease liabilities | 17.7 | 18.4 | ||
Other long-term liabilities | 6.5 | 11 | ||
Total long-term liabilities | 47.4 | 56.3 | ||
Intercompany advances | 19.2 | 9.8 | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | 425.9 | 437.1 | ||
Noncontrolling interests | 14.2 | 14.1 | ||
Total equity | 440.1 | 451.2 | ||
Total liabilities and shareholder's equity | 611.5 | 628.7 | ||
Reclassifications/ Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Receivable from affiliates | 0 | 0 | ||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Investments in subsidiaries | (1,006) | (1,005.9) | ||
Intercompany advances | (750.1) | (742.1) | ||
Property, plant and equipment, net | 0 | 0 | ||
Operating lease right-of-use assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Other long-term assets | 0 | 0 | ||
Total assets | (1,756.1) | (1,748) | ||
Current liabilities: | ||||
Trade accounts payable | 0 | 0 | ||
Payable to affiliates | 0 | 0 | ||
Current portion of long-term debt and short-term debt | 0 | 0 | ||
Current portion of operating lease liabilities | 0 | 0 | ||
Accrued expenses and other | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term liabilities, less current portion: | ||||
Long-term debt | 0 | 0 | ||
Long-term operating lease liabilities | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total long-term liabilities | 0 | 0 | ||
Intercompany advances | (750.1) | (742.1) | ||
Total Park-Ohio Industries, Inc. and Subsidiaries shareholder's equity | (991.8) | (991.8) | ||
Noncontrolling interests | (14.2) | (14.1) | ||
Total equity | (1,006) | (1,005.9) | ||
Total liabilities and shareholder's equity | $ (1,756.1) | $ (1,748) |
Supplemental Guarantor Inform_4
Supplemental Guarantor Information (Consolidating Statements of Income (Loss) and Comprehensive Income (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidating statement of operations | ||
Net sales | $ 366.3 | $ 420.1 |
Cost of sales | 312.4 | 354.8 |
Gross profit | 53.9 | 65.3 |
Selling, general and administrative expenses | 40.7 | 42.7 |
Gain on sale of assets | 0 | |
Income (loss) from subsidiaries | 0 | 0 |
Operating income (loss) | 13.2 | 22.6 |
Other components of pension income and other postretirement benefits expense, net | 1.8 | 1.3 |
Interest expense, net | (7.9) | (8.2) |
Income (loss) before income taxes | 7.1 | 15.7 |
Income tax expense | (5.5) | (3.9) |
Net income (loss) | 1.6 | 11.8 |
Net (income) loss attributable to noncontrolling interests | (0.1) | (0.5) |
Net income attributable to Park-Ohio Industries Inc. common shareholder | 1.5 | 11.3 |
Other comprehensive income (loss) | ||
Net income | 1.6 | 11.8 |
Currency translation | (16.6) | 0.7 |
Pension and OPEB activity, net of tax | 0.5 | 5.3 |
Total comprehensive (loss) income, net of tax | (14.5) | 17.8 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.1) | (0.5) |
Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder | (14.6) | 17.3 |
Reportable Legal Entities | Parent | ||
Consolidating statement of operations | ||
Net sales | 0 | 0 |
Cost of sales | 0.8 | 0.7 |
Gross profit | (0.8) | (0.7) |
Selling, general and administrative expenses | 6.2 | 6.2 |
Gain on sale of assets | 0 | |
Income (loss) from subsidiaries | 13.1 | 24 |
Operating income (loss) | 6.1 | 17.1 |
Other components of pension income and other postretirement benefits expense, net | 1.8 | 1.3 |
Interest expense, net | (6.3) | (6.6) |
Income (loss) before income taxes | 1.6 | 11.8 |
Income tax expense | 0 | 0 |
Net income (loss) | 1.6 | 11.8 |
Net (income) loss attributable to noncontrolling interests | (0.1) | (0.5) |
Net income attributable to Park-Ohio Industries Inc. common shareholder | 1.5 | 11.3 |
Other comprehensive income (loss) | ||
Net income | 1.6 | 11.8 |
Currency translation | (16.6) | 0.7 |
Pension and OPEB activity, net of tax | 0.5 | 5.3 |
Total comprehensive (loss) income, net of tax | (14.5) | 17.8 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.1) | (0.5) |
Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder | (14.6) | 17.3 |
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||
Consolidating statement of operations | ||
Net sales | 264.7 | 306.5 |
Cost of sales | 225.2 | 260.9 |
Gross profit | 39.5 | 45.6 |
Selling, general and administrative expenses | 25.9 | 26 |
Gain on sale of assets | 0 | |
Income (loss) from subsidiaries | 3.6 | 5.4 |
Operating income (loss) | 17.2 | 25 |
Other components of pension income and other postretirement benefits expense, net | 0 | 0 |
Interest expense, net | (0.2) | 0 |
Income (loss) before income taxes | 17 | 25 |
Income tax expense | (4.3) | (1.8) |
Net income (loss) | 12.7 | 23.2 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 |
Net income attributable to Park-Ohio Industries Inc. common shareholder | 12.7 | 23.2 |
Other comprehensive income (loss) | ||
Net income | 12.7 | 23.2 |
Currency translation | 0 | 0 |
Pension and OPEB activity, net of tax | 0 | 0 |
Total comprehensive (loss) income, net of tax | 12.7 | 23.2 |
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 |
Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder | 12.7 | 23.2 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||
Consolidating statement of operations | ||
Net sales | 101.6 | 113.6 |
Cost of sales | 86.4 | 93.2 |
Gross profit | 15.2 | 20.4 |
Selling, general and administrative expenses | 8.6 | 10.5 |
Gain on sale of assets | ||
Income (loss) from subsidiaries | 0 | 0 |
Operating income (loss) | 6.6 | 9.9 |
Other components of pension income and other postretirement benefits expense, net | 0 | 0 |
Interest expense, net | (1.4) | (1.6) |
Income (loss) before income taxes | 5.2 | 8.3 |
Income tax expense | (1.2) | (2.1) |
Net income (loss) | 4 | 6.2 |
Net (income) loss attributable to noncontrolling interests | (0.1) | (0.5) |
Net income attributable to Park-Ohio Industries Inc. common shareholder | 3.9 | 5.7 |
Other comprehensive income (loss) | ||
Net income | 4 | 6.2 |
Currency translation | (16.6) | 0.7 |
Pension and OPEB activity, net of tax | 0 | 0 |
Total comprehensive (loss) income, net of tax | (12.6) | 6.9 |
Comprehensive (income) loss attributable to noncontrolling interest | (0.1) | (0.5) |
Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder | (12.7) | 6.4 |
Reclassifications/ Eliminations | ||
Consolidating statement of operations | ||
Net sales | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Gain on sale of assets | 0 | |
Income (loss) from subsidiaries | (16.7) | (29.4) |
Operating income (loss) | (16.7) | (29.4) |
Other components of pension income and other postretirement benefits expense, net | 0 | 0 |
Interest expense, net | 0 | 0 |
Income (loss) before income taxes | (16.7) | (29.4) |
Income tax expense | 0 | 0 |
Net income (loss) | (16.7) | (29.4) |
Net (income) loss attributable to noncontrolling interests | 0.1 | 0.5 |
Net income attributable to Park-Ohio Industries Inc. common shareholder | (16.6) | (28.9) |
Other comprehensive income (loss) | ||
Net income | (16.7) | (29.4) |
Currency translation | 16.6 | (0.7) |
Pension and OPEB activity, net of tax | 0 | 0 |
Total comprehensive (loss) income, net of tax | (0.1) | (30.1) |
Comprehensive (income) loss attributable to noncontrolling interest | 0.1 | 0.5 |
Comprehensive (loss) income attributable to Park-Ohio Industries Inc. common shareholder | $ 0 | $ (29.6) |
Supplemental Guarantor Inform_5
Supplemental Guarantor Information (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net cash (used) provided by operating activities | $ (4.1) | $ 5.4 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (4.9) | (10.6) |
Proceeds from sale of an asset | 1.4 | 0 |
Net cash used by investing activities | (3.5) | (10.6) |
FINANCING ACTIVITIES | ||
Intercompany account change | 0 | 0 |
Proceeds from revolving credit facility, net | 15.5 | 1.3 |
Payments on term loans and other debt | (2.3) | (2.2) |
Proceeds from term loans and other debt | 0.2 | 1.1 |
Proceeds from finance lease facilities, net | 0.6 | |
Payments on finance lease facilities, net | (1.6) | |
Dividends paid to Parent | (9.5) | |
Dividend | (0.3) | |
Net cash provided (used) by financing activities | 4.5 | (1.7) |
Effect of exchange rate changes on cash | (2) | 0.1 |
Decrease in cash and cash equivalents | (5.1) | (6.8) |
Cash and cash equivalents at beginning of period | 46.7 | 46.6 |
Cash and cash equivalents at end of period | 41.6 | 39.8 |
Reportable Legal Entities | Parent | ||
OPERATING ACTIVITIES | ||
Net cash (used) provided by operating activities | (15.7) | (12.5) |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (0.2) | 0 |
Proceeds from sale of an asset | 1.4 | |
Net cash used by investing activities | 1.2 | 0 |
FINANCING ACTIVITIES | ||
Intercompany account change | 6.5 | 11.2 |
Proceeds from revolving credit facility, net | 17.5 | 1.3 |
Payments on term loans and other debt | 0 | 0 |
Proceeds from term loans and other debt | 0 | 0 |
Proceeds from finance lease facilities, net | 0 | |
Payments on finance lease facilities, net | 0 | |
Dividends paid to Parent | (9.5) | |
Dividend | 0 | |
Net cash provided (used) by financing activities | 14.5 | 12.5 |
Effect of exchange rate changes on cash | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Reportable Legal Entities | Combined Guarantor Subsidiaries | ||
OPERATING ACTIVITIES | ||
Net cash (used) provided by operating activities | 13.5 | 10.6 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (3.3) | (6.2) |
Proceeds from sale of an asset | 0 | |
Net cash used by investing activities | (3.3) | (6.2) |
FINANCING ACTIVITIES | ||
Intercompany account change | (11.2) | (3.1) |
Proceeds from revolving credit facility, net | 0 | 0 |
Payments on term loans and other debt | 0 | (0.9) |
Proceeds from term loans and other debt | 0 | 0.6 |
Proceeds from finance lease facilities, net | 0.9 | |
Payments on finance lease facilities, net | (1.4) | |
Dividends paid to Parent | 0 | |
Dividend | 0 | |
Net cash provided (used) by financing activities | (10.3) | (4.8) |
Effect of exchange rate changes on cash | 0 | 0 |
Decrease in cash and cash equivalents | (0.1) | (0.4) |
Cash and cash equivalents at beginning of period | 0.4 | 0.4 |
Cash and cash equivalents at end of period | 0.3 | 0 |
Reportable Legal Entities | Combined Non-Guarantor Subsidiaries | ||
OPERATING ACTIVITIES | ||
Net cash (used) provided by operating activities | 14.6 | 1.9 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (1.4) | (4.4) |
Proceeds from sale of an asset | 0 | |
Net cash used by investing activities | (1.4) | (4.4) |
FINANCING ACTIVITIES | ||
Intercompany account change | (11.8) | (2.7) |
Proceeds from revolving credit facility, net | (2) | 0 |
Payments on term loans and other debt | (2.3) | (1.3) |
Proceeds from term loans and other debt | 0.2 | 0.5 |
Proceeds from finance lease facilities, net | (0.3) | |
Payments on finance lease facilities, net | (0.2) | |
Dividends paid to Parent | 0 | |
Dividend | (0.3) | |
Net cash provided (used) by financing activities | (16.2) | (4) |
Effect of exchange rate changes on cash | (2) | 0.1 |
Decrease in cash and cash equivalents | (5) | (6.4) |
Cash and cash equivalents at beginning of period | 46.3 | 46.2 |
Cash and cash equivalents at end of period | 41.3 | 39.8 |
Reclassifications/ Eliminations | ||
OPERATING ACTIVITIES | ||
Net cash (used) provided by operating activities | (16.5) | 5.4 |
INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | 0 | 0 |
Proceeds from sale of an asset | 0 | |
Net cash used by investing activities | 0 | 0 |
FINANCING ACTIVITIES | ||
Intercompany account change | 16.5 | (5.4) |
Proceeds from revolving credit facility, net | 0 | 0 |
Payments on term loans and other debt | 0 | 0 |
Proceeds from term loans and other debt | 0 | 0 |
Proceeds from finance lease facilities, net | 0 | |
Payments on finance lease facilities, net | 0 | |
Dividends paid to Parent | 0 | |
Dividend | 0 | |
Net cash provided (used) by financing activities | 16.5 | (5.4) |
Effect of exchange rate changes on cash | 0 | 0 |
Decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |