Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2017shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Milacron Holdings Corp. |
Entity Central Index Key | 1,637,913 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 69,089,665 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 87.9 | $ 130.2 |
Accounts receivable, net | 188.6 | 182.3 |
Inventories, net: | ||
Raw materials | 85.2 | 81.3 |
Work-in-process | 64.2 | 52.6 |
Finished products | 119.8 | 115.6 |
Total inventories, net | 269.2 | 249.5 |
Prepaid and other current assets | 44.9 | 46.3 |
Total current assets | 590.6 | 608.3 |
Property and equipment, net | 249.8 | 243.7 |
Goodwill | 514.3 | 507.9 |
Intangible assets, net | 339.4 | 341.8 |
Other noncurrent assets | 20.1 | 20.3 |
Total assets | 1,714.2 | 1,722 |
Current liabilities: | ||
Short-term borrowings | 7 | 7 |
Long-term debt and capital lease obligations due within one year | 9.5 | 0.3 |
Accounts payable | 95.5 | 92.5 |
Advanced billings and deposits | 62.9 | 52.7 |
Accrued salaries, wages and other compensation | 22.5 | 26.7 |
Accrued interest | 0.4 | 13.9 |
Other current liabilities | 59.4 | 59.7 |
Total current liabilities | 257.2 | 252.8 |
Long-term debt and capital lease obligations | 922.8 | 934.1 |
Deferred income tax liabilities | 65.8 | 64.4 |
Accrued pension liabilities | 28.8 | 27.8 |
Other noncurrent accrued liabilities | 8.6 | 8 |
Total liabilities | 1,283.2 | 1,287.1 |
Shareholders’ equity: | ||
Preferred stock - $0.01 par value, 50,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock - $0.01 par value, 500,000,000 shares authorized; 69,089,665 and 68,473,561 | 0.7 | 0.7 |
Capital in excess of par value | 665.6 | 661 |
Retained deficit | (96.2) | (68.9) |
Accumulated other comprehensive loss | (139.1) | (157.9) |
Total shareholders’ equity | 431 | 434.9 |
Total liabilities and shareholders’ equity | $ 1,714.2 | $ 1,722 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 69,089,665 | 68,473,561 |
Common stock, shares outstanding (in shares) | 69,089,665 | 68,473,561 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 285.4 | $ 277.3 |
Cost of sales | 191.6 | 181.2 |
Manufacturing margins | 93.8 | 96.1 |
Operating expenses: | ||
Selling, general and administrative expenses | 64.6 | 62.8 |
Amortization expense | 7 | 7.7 |
Gain on currency translation | (1.3) | (6.8) |
Other expense, net | 3.8 | 0.4 |
Total operating expenses | 74.1 | 64.1 |
Operating earnings | 19.7 | 32 |
Interest expense, net | 12.4 | 15.3 |
Loss on debt extinguishment | 25.2 | 0 |
(Loss) earnings before income taxes | (17.9) | 16.7 |
Income tax expense | 6.7 | 6.9 |
Net (loss) earnings | $ (24.6) | $ 9.8 |
(Loss) earnings per share: | ||
Basic (in dollars per share) | $ (0.36) | $ 0.15 |
Diluted (in dollars per share) | $ (0.36) | $ 0.14 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) earnings | $ (24.6) | $ 9.8 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments | 18.8 | 10 |
Unrecognized post-retirement plan loss | (0.1) | (0.1) |
Unrealized gain on hedging activities | 0.1 | 0.6 |
Total other comprehensive income, net of tax | 18.8 | 10.5 |
Comprehensive loss attributable to Milacron Holdings Corp. | $ (5.8) | $ 20.3 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities | ||
Net (loss) earnings | $ (24.6) | $ 9.8 |
Adjustments to reconcile net (loss) earnings to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 14.5 | 14.8 |
Unrealized gain on currency translation of intercompany advances | (1.9) | (7) |
Amortization of deferred financing costs | 0.7 | 0.9 |
Loss on debt extinguishment | 25.2 | 0 |
Non-cash stock-based compensation expense | 1.9 | 1.1 |
Deferred income taxes | 0.8 | (0.5) |
Changes in assets and liabilities: | ||
Accounts receivable | (2.6) | 17.3 |
Inventories | (15.6) | (11.2) |
Prepaid and other current assets | (2.6) | (4.1) |
Accounts payable | 5.4 | 0.7 |
Advanced billings and deposits | 9.4 | 9.4 |
Other current liabilities | (21.1) | (7.8) |
Other noncurrent assets | 1.1 | 0.2 |
Other noncurrent accrued liabilities | 0.7 | 0.3 |
Net cash (used in) provided by operating activities | (8.7) | 23.9 |
Investing activities | ||
Purchases of property and equipment | (12.7) | (8) |
Proceeds from disposals of property and equipment | 3.5 | 0.6 |
Net cash used in investing activities | (9.2) | (7.4) |
Financing activities | ||
Proceeds from issuance of long-term debt (original maturities longer than 90 days) | 983.5 | 0 |
Payments on long-term debt and capital lease obligations (original maturities longer than 90 days) | (985.3) | (0.7) |
Net (decrease) increase in short-term borrowings (original maturities of 90 days or less) | (0.1) | 0.3 |
Premium paid on debt redemption | (18) | 0 |
Proceeds from exercise of stock options | 1.9 | 2.2 |
Debt issuance costs | (9.4) | 0 |
Net cash (used in) provided by financing activities | (27.4) | 1.8 |
Effect of exchange rate changes on cash | 3 | 1.6 |
(Decrease) increase in cash and cash equivalents | (42.3) | 19.9 |
Cash and cash equivalents at beginning of period | 130.2 | 67.5 |
Cash and cash equivalents at end of period | $ 87.9 | $ 87.4 |
Background and Basis of Present
Background and Basis of Presentation | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Milacron Holdings Corp. (the "Company" or "Milacron") is a global leader in the manufacture, distribution, and service of highly engineered and customized systems used in the plastic technology and processing industry. The Company has a full-line product portfolio that includes hot runner systems, injection molding, blow molding and extrusion equipment and produces process control systems, mold bases and components and maintenance, repair and operating ("MRO") supplies for plastic processing equipment and fluid technology. The Company operates throughout the world and is headquartered in Cincinnati, Ohio. The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles ("U.S. GAAP") for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the Condensed Consolidated Financial Statements for the interim periods. The interim period results are not necessarily indicative of the results to be expected for the full year. These interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes for the fiscal year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2017. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 was effective for the Company beginning January 1, 2017 and the impact of the Company's adoption in the three months ended March 31, 2017 resulted in the following: • The Company recorded $1.1 million of previously unrecognized deferred tax assets that arose from tax deductions for share-based compensation in excess of compensation expense recognized for financial reporting during years when net operating losses were created. A corresponding increase in the valuation allowance was also recorded and, as a result, there was no impact to the Company's Condensed Consolidated Statements of Operations. • The Company elected to change its policy on accounting for forfeitures and now will account for forfeitures as they occur. This policy election resulted in a cumulative-effect adjustment to retained earnings of $0.8 million as of January 1, 2017. • The Company will no longer reclassify any excess tax benefits from operating activities to financing activities in the statement of cash flows. The Company elected to apply this change in presentation prospectively and thus prior periods have not been adjusted. • The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of diluted earnings per share for the three months ended March 31, 2017. This did not have an impact on our computation of diluted weighted-average common shares outstanding. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) ("ASU 2016-15"). ASU 2016-15 clarifies the classification of certain cash receipts and cash payments within the statement of cash flows to reduce diversity in practice. ASU 2016-15 is effective for the Company beginning January 1, 2018 and early adoption is permitted. The Company elected to early adopt ASU 2016-15 during the three months ended March 31, 2017 which is required to be adopted retrospectively. As a result, the Company has classified debt extinguishment costs paid during the three months ended March 31, 2017 as a financing activity within the Company's Condensed Consolidated Statements of Cash Flows and there was no impact on any prior periods presented. In October 2016, the FASB issued ASU No. 2016-16, Accounting for Income Taxes: Intra-Entity Asset Transfers of Assets Other than Inventory ("ASU 2016-16"). Prior to the adoption of ASU 2016-16, the tax effects of intra-entity transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. ASU 2016-16 eliminates this deferral for all intra-entity sales of assets other than inventory. ASU 2016-16 is effective for the Company beginning January 1, 2018 with early adoption permitted and the Company elected to early adopt ASU 2016-16 during the three months ended March 31, 2017. As a result, the Company recorded a cumulative-effect adjustment to retained earnings of approximately $1.9 million with a corresponding reduction in prepaid tax assets as of January 1, 2017. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . Topic 606, as further amended, affects virtually all aspects of an entity’s revenue recognition, including determining the measurement of revenue and the timing of when it is recognized for the transfer of goods or services to customers. Topic 606 is effective for the Company beginning January 1, 2018. The guidance permits two methods of adoption - retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company continues to progress through the evaluation of the impact of the new standard. At this time the Company has not identified any impacts to its consolidated financial statements that the Company believes will be material in the year of adoption. The Company is still evaluating the impact to certain revenue streams within the Advanced Plastics Processing Technologies and Melt Delivery and Control Systems segments. Based on the current estimated impact to the Company's Condensed Consolidated Financial Statements, the Company plans to adopt the new guidance under the modified retrospective approach. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be either classified as finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. ASU 2016-02 is effective for the Company beginning January 1, 2019 with early adoption allowed and practical expedients to measure the effect of adoption also being allowed. The Company is currently evaluating the effect that the adoption will have on the Company's Condensed Consolidated Financial Statements. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table summarizes the changes in the Company’s goodwill, by reportable segment, for the three months ended March 31, 2017 : Advanced Plastic Processing Technologies Melt Delivery and Control Systems Fluid Technologies Corporate Total (in millions) Balance at December 31, 2016 $ 37.0 $ 424.0 $ 46.9 $ — $ 507.9 Foreign currency translation adjustments — 6.4 — — 6.4 Balance at March 31, 2017 $ 37.0 $ 430.4 $ 46.9 $ — $ 514.3 The following table summarizes the Company’s other intangible assets at March 31, 2017 : Gross Amount Accumulated Amortization Net (in millions) Intangible assets subject to amortization: Trademarks $ 41.9 $ 19.2 $ 22.7 Technology 114.3 39.2 75.1 Customer relationships 225.2 119.7 105.5 Total intangible assets subject to amortization 381.4 178.1 203.3 Trademarks, not subject to amortization 136.1 — 136.1 Total $ 517.5 $ 178.1 $ 339.4 The following table summarizes the Company’s other intangible assets at December 31, 2016 : Gross Amount Accumulated Amortization Net Amount (in millions) Intangible assets subject to amortization: Trademarks $ 41.5 $ 18.2 $ 23.3 Technology 112.6 36.3 76.3 Customer relationships 222.7 114.9 107.8 Total intangible assets subject to amortization 376.8 169.4 207.4 Trademarks, not subject to amortization 134.4 — 134.4 Total $ 511.2 $ 169.4 $ 341.8 Consolidated amortization expense related to intangible assets subject to amortization was $7.0 million and $7.7 million for the three months ended March 31, 2017 and 2016 , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes An estimated annual effective tax rate is used to determine the quarterly provision for income taxes. The effective rate is based on various factors including expected annual income, statutory tax rates, tax planning opportunities in the various jurisdictions in which the Company operates, permanent items, valuation allowances against deferred tax assets and the ability to utilize tax credits and net operating loss carryforwards. Subsequent recognition, derecognition and measurement of tax positions are separately recognized in the quarter in which the underlying transaction or event occurs which causes variability in the effective tax rates from quarter to quarter. The effective rate for each period differs from the U.S. federal statutory income tax rate due to the mix of earnings by jurisdiction and the effect of transaction costs and business combination accounting adjustments that do not provide tax benefits. Since the Company operates in multiple taxing jurisdictions at rates that are typically less than the U.S. statutory rate, the consolidated effective rate is typically lower than 35% . The valuation allowances also cause volatility in the effective rate as they reduce deferred tax assets in jurisdictions which lack sufficient positive evidence regarding the ability to utilize the assets and no tax benefit or expense is recognized for losses or income incurred in those jurisdictions. In accordance with Accounting Standards Codification 740 ("ASC 740"), the Company records interest and penalties associated with uncertain tax positions within income tax expense within the Company's Condensed Consolidated Statements of Operations. The Company does not have a material liability recorded for interest and penalties related to uncertain tax positions for any period presented. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt for the Company consists of the following: March 31, 2017 December 31, 2016 Principal Unamortized Discount and Debt Issuance Costs Net Principal Unamortized Discount and Debt Issuance Costs Net (in millions) Senior secured term loan facility due September 2023 $ 944.6 $ 12.6 $ 932.0 $ — $ — $ — 7.75% senior unsecured notes due 2021 — — — 464.4 7.3 457.1 Senior secured term loan facility due September 2020 — — — 482.0 5.1 476.9 Borrowings under other lines of credit 7.0 — 7.0 7.0 — 7.0 Capital lease obligations and other 0.3 — 0.3 0.4 — 0.4 951.9 12.6 939.3 953.8 12.4 941.4 Less current portion (16.5 ) — (16.5 ) (7.3 ) — (7.3 ) $ 935.4 $ 12.6 $ 922.8 $ 946.5 $ 12.4 $ 934.1 On February 15, 2017, Milacron LLC, a wholly-owned subsidiary of the Company, entered into a new $947.0 million senior secured term loan facility with a maturity date of September 28, 2023 ("2017 Term Loan Facility") pursuant to an amendment of the Company's $730.0 million senior secured term loan facility due September 2020 (the "New Term Loan Facility"). The net proceeds from the 2017 Term Loan Facility, together with cash on-hand, were used to redeem in full $464.4 million aggregate principal amount outstanding of the Company's 7.75% senior unsecured notes due 2021 (the "Senior Unsecured Notes"), repay in full $482.0 million aggregate principal amount outstanding under the Company's New Term Loan Facility and pay fees and expenses associated with these transactions. The 2017 Term Loan Facility was priced at 99.625% of the principal amount and bears interest at a rate per annum equal to an applicable margin or applicable rate plus, at our option, either (a) a base rate determined by the reference to the highest of (1) the prime commercial lending rate publicly announced by the administrative agent of the 2017 Term Loan Facility as the “prime rate” as in effect on such day, (2) the federal funds effective rate plus 0.50% , and (3) the LIBOR rate determined by reference to the cost of funds for Eurodollar deposits for an interest period of one month, plus 1.00% or (b) a LIBOR rate (which shall be no less than 0.00% ) determined by reference to the costs of funds for Eurodollar deposits for the specified interest period, as adjusted for certain statutory reserve requirements. The applicable margins for borrowings are (i) 2.00% with respect to base rate borrowings and 3.00% with respect to LIBOR borrowings, subject to compliance with a total net leverage ratio of greater than 3.50 to 1.00 and (ii) 1.75% with respect to base rate borrowings and 2.75% with respect to LIBOR borrowings, subject to compliance with a total net leverage ratio not to exceed 3.50 to 1.00 . In connection with these transactions, the Company recognized a $25.2 million loss on the early extinguishment of debt. The loss on debt extinguishment includes a $18.0 million premium paid to redeem the Senior Unsecured Notes and the write-off of $7.2 million of deferred financing costs and debt discount associated with the Senior Unsecured Notes and the New Term Loan Facility. The Company also capitalized an additional $4.6 million of deferred financing costs related to the issuance of the 2017 Term Loan Facility which are being amortized over the term of the loan using the effective interest rate method. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors three noncontributory defined benefit pension plans for certain non-U.S. employees and retirees. One plan covers certain employees in the United Kingdom and the other two plans cover certain employees in Germany. Net periodic pension expense was $0.4 million and $0.3 million for the three months ended March 31, 2017 and 2016 , respectively. Net periodic pension expense is included in cost of sales and selling, general and administrative expenses in the Company's Condensed Consolidated Statements of Operations. |
Net Loss Per Share and Sharehol
Net Loss Per Share and Shareholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share and Shareholders' Equity | Net (Loss) Earnings Per Share The following is a reconciliation of the numerator and denominator of the basic and diluted net (loss) earnings per share ("EPS") computations: Three Months Ended March 31, 2017 2016 (in millions, except common share and per common share amounts) Numerator: Net (loss) earnings $ (24.6 ) $ 9.8 Denominator: Denominator for basic EPS–weighted-average common shares 68,260,015 67,179,348 Dilutive effect of stock-based compensation arrangements — 2,496,120 Denominator for diluted EPS–adjusted weighted-average common shares 68,260,015 69,675,468 Basic EPS $ (0.36 ) $ 0.15 Diluted EPS $ (0.36 ) $ 0.14 The diluted EPS calculation for the three months ended March 31, 2017 excludes the effect of 674,023 shares of restricted stock, 194,733 restricted stock units, 83,130 performance stock units and 5,302,342 outstanding stock options as their effect is anti-dilutive. Holders of non-vested stock-based compensation awards do not have voting rights or rights to receive nonforfeitable dividends on the shares covered by the awards. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation On March 1, 2017, the Company granted 453,532 stock options, 83,130 performance stock units, 310,946 restricted stock awards and 195,779 restricted stock units under the 2015 Equity Incentive Plan. The stock options, valued using a closed form option pricing model, vest in equal annual increments over four years . The performance stock units contain a three -year performance period with a performance target based on return on invested capital and possible payouts ranging from 50% to 200% of the target awards. The restricted stock awards and restricted stock units vest in equal annual increments over three years . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments In the normal course of business, including the purchasing of materials and selling of products, the Company is exposed to certain risks related to fluctuations in foreign currency exchange rates. The Company uses foreign currency forward contracts to manage risks from these market fluctuations. The Company is also exposed to certain risks related to fluctuations in interest rates and uses interest rate swaps to manage risk from these market fluctuations. The counterparties to these financial instruments are financial institutions with strong credit ratings. The Company maintains control over the size of positions entered into with any one counterparty and monitors the credit ratings of these institutions. Foreign Currency Forward Contracts The Company currently hedges its risk relative to fluctuations in the Canadian dollar, Euro and Japanese yen for forecasted cash outflows denominated in these currencies. The Company had foreign currency forward contracts denominated in these currencies outstanding with notional amounts totaling $4.0 million at March 31, 2017 and $7.0 million at December 31, 2016 . As of March 31, 2017 , all of the Company’s outstanding instruments mature within the next eight months . The Company’s derivative instruments discussed above are designated as cash flow hedges and the fair value of these derivative instruments was de minimus at March 31, 2017 and $0.6 million at December 31, 2016 which is included in other current liabilities in the Company's Condensed Consolidated Balance Sheets. The following table provides the effect of the Company’s foreign currency forward contracts designated as cash flow hedges on the Company’s Condensed Consolidated Financial Statements for the three months ended March 31, 2017 and 2016 : Type of instrument: Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (in millions) Three Months Ended March 31, 2017 Foreign exchange contracts $ 0.1 $ — Three Months Ended March 31, 2016 Foreign exchange contracts $ 0.5 $ (0.1 ) All gains (losses) that are reclassified from accumulated other comprehensive income (loss) into income (effective portion) are classified in gain on currency translation or cost of sales within the Company's Condensed Consolidated Statements of Operations. The gain (loss) recognized related to the ineffective portion of the derivative instruments was immaterial for all periods presented. During the three months ended March 31, 2016 , the Company recorded a net loss of $0.1 million , respectively, related to the settlement of forward contracts which were designated as cash flow hedges. The Company also enters into derivative instruments (forwards) to economically hedge the impact of fluctuations in the Indian rupee. During the three months ended March 31, 2017 , the Company recognized a gain of $0.1 million related to the changes in fair value of these derivative instruments not designated as hedges. These gains and losses are recognized immediately within the Company's Condensed Consolidated Statements of Operations and are classified within gain on currency translation. The fair value of these derivative instruments not designated as hedges at March 31, 2017 was an asset of $0.1 million . Interest Rate Swap Agreements The Company is exposed to changes in interest rates on its variable rate debt. In order to manage this risk, on February 16, 2017, Milacron LLC, a wholly-owned subsidiary of the Company, entered into two interest rate swap transactions effective for a four-year period beginning January 31, 2018 with a total notional amount of $400.0 million . The interest rate swaps are intended to manage the Company's interest rate risk by fixing the interest rate on a portion of the Company's debt outstanding under the 2017 Term Loan Facility that was previously subject to a floating interest rate equal to 1-month LIBOR plus a credit spread. The swaps provide for the Company to pay a fixed rate of 2.062% per annum on such portion of the outstanding debt in exchange for receiving a variable interest rate based on 1-month LIBOR. The effect is a synthetically fixed rate of 2.062% plus the loan spread for the term and debt hedged. The Company designated these interest rate swaps as cash flow hedges of floating rate borrowings and expects the hedge to be highly effective in offsetting fluctuations in the designated interest payments resulting from changes in the benchmark interest rate. The gains and losses on the designated interest rate swaps will offset losses and gains on the transactions being hedged. The fair value of the interest rate swaps is calculated by taking into consideration current interest rates and the current creditworthiness of the counterparties or the Company, as applicable. The effective portion of changes in the fair value of the interest rate swaps is reflected as a component of accumulated other comprehensive income and recognized as interest expense, net as payments are paid or accrued. The remaining gain or loss in excess of the cumulative change in the present value of the future cash flows of the hedge item, if any (i.e. the ineffective portion), is recognized as interest expense, net during the current period. During the three months ended March 31, 2017 , the Company recorded $0.1 million of hedge ineffectiveness in earnings. Fair Value Measurements The Company estimates fair value of its financial instruments utilizing an established three-level hierarchy. The hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date as follows: • Level 1–Valuation is based upon unadjusted quoted prices for identical assets or liabilities in active markets. • Level 2–Valuation is based upon quoted prices for similar assets and liabilities in active markets, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial statements. • Level 3–Valuation is based upon other unobservable inputs that are significant to the fair value measurements. The classification of fair value measurements within the established three-level hierarchy is based upon the lowest level of input that is significant to that measurement. The fair values of the Company’s derivative instruments were measured using valuations based upon quoted prices for similar assets and liabilities in active markets (Level 2) and are valued by reference to similar financial instruments, adjusted for terms specific to the contracts. There were no transfers between the three levels of the fair value hierarchy during any period presented. The derivative assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 were as follows: Balance Sheet Location Total Level 1 Level 2 Level 3 (in millions) March 31, 2017 Interest rate swap agreements (asset position) Other noncurrent assets $ 0.3 $ — $ 0.3 $ — Interest rate swap agreements (liability position) Other current liabilities $ 0.4 $ — $ 0.4 $ — December 31, 2016 Foreign currency forward contracts (liability position) Other current liabilities $ 0.6 $ — $ 0.6 $ — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss): Foreign Currency Translation Unrecognized Post- Retirement Plan Losses Derivative Financial Instruments Total (in millions) Balance at December 31, 2015 $ (104.5 ) $ (4.6 ) $ — $ (109.1 ) Other comprehensive income (loss) before reclassifications 10.0 (0.1 ) 0.5 10.4 Amounts reclassified from accumulated other comprehensive income (loss) — — 0.1 0.1 Other comprehensive income (loss) 10.0 (0.1 ) 0.6 10.5 Balance at March 31, 2016 $ (94.5 ) $ (4.7 ) $ 0.6 $ (98.6 ) Balance at December 31, 2016 $ (150.0 ) $ (7.3 ) $ (0.6 ) $ (157.9 ) Other comprehensive income (loss) before reclassifications 18.8 (0.3 ) 0.1 18.6 Amounts reclassified from accumulated other comprehensive income (loss) — 0.2 — 0.2 Other comprehensive income (loss) 18.8 (0.1 ) 0.1 18.8 Balance at March 31, 2017 $ (131.2 ) $ (7.4 ) $ (0.5 ) $ (139.1 ) The following table summarizes the reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2017 and 2016 : Classification Three Months Ended March 31, of Expense 2017 2016 (in millions) Unrealized pension and post-retirement obligations: Adjustment of pension and post-retirement obligations (a) $ (0.2 ) $ — Tax benefit (c) — — Adjustment of pension and post-retirement obligations, net of tax (0.2 ) — Derivative financial instruments: Gain (loss) on derivative financial instruments (b) — (0.1 ) Tax benefit (c) — — Gain (loss) on derivative financial instruments, net of tax — (0.1 ) Total reclassifications from accumulated other comprehensive income (loss) $ (0.2 ) $ (0.1 ) (a) Amount is included in the calculation of pension cost within cost of sales and selling, general and administrative expense in the Company's Condensed Consolidated Statements of Operations. (b) Amount is included in cost of sales and gain on currency translation in the Company's Condensed Consolidated Statements of Operations. (c) These amounts are included in income tax expense in the Company's Condensed Consolidated Statements of Operations. |
Warranty Reserves
Warranty Reserves | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserves | Warranty Reserves A reserve for estimated warranty costs is recorded at the time of sale of machinery and parts and is periodically adjusted to reflect actual experience. The following table summarizes changes in the Company’s warranty reserves for the periods indicated. Accrued warranty reserves are included in other current liabilities in the Company's Condensed Consolidated Balance Sheets: Three Months Ended March 31, 2017 2016 (in millions) Balance at beginning of period $ 8.7 $ 8.3 Warranty expense 4.0 2.8 Warranty claims paid (4.9 ) (2.9 ) Foreign currency translation adjustments 0.2 0.2 Balance at end of period $ 8.0 $ 8.4 |
Restructuring Reserves
Restructuring Reserves | 3 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Reserves | Restructuring Reserves On September 30, 2016, the Company's wholly-owned subsidiary Ferromatik Milacron GmbH entered into an agreement with its local works council setting forth a restructuring plan related to its manufacturing facility in Malterdingen, Germany whereby certain operational functions will be shifted to the Company's operations in the Czech Republic. During the three months ended March 31, 2017 , the Company recorded severance expense of $2.6 million related to this restructuring plan which is included within other expense, net in the Company's Condensed Consolidated Statements of Operations. Substantially all of these costs will result in future cash expenditures and are expected to be substantially complete by the third quarter of 2018. As the employees are required to render service in order to receive the termination benefits, the associated liability and expense are being recognized ratably over the future service period. The total remaining liability related to this plan was $5.0 million and $2.6 million as of March 31, 2017 and December 31, 2016 , respectively, and is included in other current liabilities in the Company's Condensed Consolidated Balance Sheets. During the three months ended March 31, 2017 , the Company closed the sale of the Mechelen, Belgium facility which had been classified as held-for-sale. Proceeds from the sale were approximately $3.0 million . The Mechelen, Belgium facility was reported within the Melt Delivery and Control Systems segment. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | Business Segment Information The Company’s operations are principally managed based upon the products that are produced and are comprised of three operating segments, which are the same as the Company’s reportable segments: Advanced Plastic Processing Technologies, Melt Delivery and Control Systems, and Fluid Technologies. The factors for determining the Company’s reportable segments include the manner in which management evaluates performance combined with the nature of the individual business activities. The Company evaluates the performance of its segments based on net sales and operating earnings. Operating earnings includes net sales to third parties, related cost of sales and operating expenses directly attributable to the segments. Operating earnings for each segment excludes items that are of a non-operating nature or are of a corporate or functional governance nature. Costs excluded from segment operating earnings include interest expense, income taxes and various corporate expenses such as transaction costs associated with the acquisition of certain businesses, stock-based compensation expense and other separately managed general and administrative costs. The effects of intersegment transactions have been eliminated. The following table summarizes total assets by segment: March 31, 2017 December 31, (in millions) Advanced Plastic Processing Technologies $ 515.6 $ 503.0 Melt Delivery and Control Systems 1,026.4 1,003.8 Fluid Technologies 143.1 141.6 Corporate 29.1 73.6 Total assets $ 1,714.2 $ 1,722.0 The following table summarizes long-lived assets, net by segment: March 31, 2017 December 31, (in millions) Advanced Plastic Processing Technologies $ 126.2 $ 121.4 Melt Delivery and Control Systems 102.3 101.0 Fluid Technologies 15.5 15.2 Corporate 5.8 6.1 Total long-lived assets, net $ 249.8 $ 243.7 The following tables summarize segment information: Three Months Ended March 31, 2017 2016 (in millions) Net sales to external customers: Advanced Plastic Processing Technologies $ 156.6 $ 156.1 Melt Delivery and Control Systems 99.8 93.0 Fluid Technologies 29.0 28.2 Total net sales to external customers $ 285.4 $ 277.3 Three Months Ended March 31, 2017 2016 (in millions) Operating earnings (loss): Advanced Plastic Processing Technologies $ 2.1 $ 9.8 Melt Delivery and Control Systems 25.5 28.2 Fluid Technologies 4.6 4.1 Corporate (12.5 ) (10.1 ) Total operating earnings $ 19.7 $ 32.0 Capital expenditures: Advanced Plastic Processing Technologies $ 5.9 $ 5.6 Melt Delivery and Control Systems 6.6 1.7 Fluid Technologies 0.1 0.1 Corporate 0.1 0.6 Total capital expenditures $ 12.7 $ 8.0 Depreciation and amortization: Advanced Plastic Processing Technologies $ 4.8 $ 5.1 Melt Delivery and Control Systems 8.2 8.2 Fluid Technologies 1.2 1.4 Corporate 0.3 0.1 Total depreciation and amortization $ 14.5 $ 14.8 The following tables summarize net sales to external customers and long-lived assets, net by geographic region: Three Months Ended March 31, 2017 2016 (in millions) Net sales to external customers: United States $ 127.2 $ 128.2 Rest of World 158.2 149.1 Total net sales to external customers $ 285.4 $ 277.3 March 31, 2017 December 31, 2016 (in millions) Long-lived assets, net: United States $ 79.9 $ 80.3 Rest of World 169.9 163.4 Total long-lived assets, net $ 249.8 $ 243.7 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On April 12, 2017, the Company's wholly-owned subsidiary Mold-Masters (2007) Limited (“Mold-Masters”) entered into an agreement ("Sales Contract") with Skyline Real Estate Acquisitions (III) Inc. ("Buyer") to sell two properties ("Properties") located in Halton Hills, Ontario, Canada for CAD $14.25 million , or approximately USD $10.7 million . The Sales Contract is subject to the Buyer entering into an agreement to lease the Properties to Mold-Masters for fifteen years for a total of approximately CAD $15.0 million , or approximately USD $11.3 million , to be paid over the term of the lease. The consummation of the transaction contemplated by the Sales Contract is subject to a number of customary closing conditions and is expected to close in the second quarter of 2017. |
Background and Basis of Prese20
Background and Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by United States generally accepted accounting principles ("U.S. GAAP") for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) have been made that are necessary for a fair presentation of the Condensed Consolidated Financial Statements for the interim periods. The interim period results are not necessarily indicative of the results to be expected for the full year. These interim Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and related notes for the fiscal year ended December 31, 2016 included in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2017. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . Topic 606, as further amended, affects virtually all aspects of an entity’s revenue recognition, including determining the measurement of revenue and the timing of when it is recognized for the transfer of goods or services to customers. Topic 606 is effective for the Company beginning January 1, 2018. The guidance permits two methods of adoption - retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company continues to progress through the evaluation of the impact of the new standard. At this time the Company has not identified any impacts to its consolidated financial statements that the Company believes will be material in the year of adoption. The Company is still evaluating the impact to certain revenue streams within the Advanced Plastics Processing Technologies and Melt Delivery and Control Systems segments. Based on the current estimated impact to the Company's Condensed Consolidated Financial Statements, the Company plans to adopt the new guidance under the modified retrospective approach. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) ("ASU 2016-02"). ASU 2016-02 establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than twelve months. Leases will be either classified as finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 also requires significant additional disclosures about the amount, timing and uncertainty of cash flows from leases. ASU 2016-02 is effective for the Company beginning January 1, 2019 with early adoption allowed and practical expedients to measure the effect of adoption also being allowed. The Company is currently evaluating the effect that the adoption will have on the Company's Condensed Consolidated Financial Statements. |
Goodwill and Other Intangible21
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |
Goodwill, by Reportable Segment | The following table summarizes the changes in the Company’s goodwill, by reportable segment, for the three months ended March 31, 2017 : Advanced Plastic Processing Technologies Melt Delivery and Control Systems Fluid Technologies Corporate Total (in millions) Balance at December 31, 2016 $ 37.0 $ 424.0 $ 46.9 $ — $ 507.9 Foreign currency translation adjustments — 6.4 — — 6.4 Balance at March 31, 2017 $ 37.0 $ 430.4 $ 46.9 $ — $ 514.3 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table summarizes the Company’s other intangible assets at March 31, 2017 : Gross Amount Accumulated Amortization Net (in millions) Intangible assets subject to amortization: Trademarks $ 41.9 $ 19.2 $ 22.7 Technology 114.3 39.2 75.1 Customer relationships 225.2 119.7 105.5 Total intangible assets subject to amortization 381.4 178.1 203.3 Trademarks, not subject to amortization 136.1 — 136.1 Total $ 517.5 $ 178.1 $ 339.4 The following table summarizes the Company’s other intangible assets at March 31, 2017 : Gross Amount Accumulated Amortization Net (in millions) Intangible assets subject to amortization: Trademarks $ 41.9 $ 19.2 $ 22.7 Technology 114.3 39.2 75.1 Customer relationships 225.2 119.7 105.5 Total intangible assets subject to amortization 381.4 178.1 203.3 Trademarks, not subject to amortization 136.1 — 136.1 Total $ 517.5 $ 178.1 $ 339.4 The following table summarizes the Company’s other intangible assets at December 31, 2016 : Gross Amount Accumulated Amortization Net Amount (in millions) Intangible assets subject to amortization: Trademarks $ 41.5 $ 18.2 $ 23.3 Technology 112.6 36.3 76.3 Customer relationships 222.7 114.9 107.8 Total intangible assets subject to amortization 376.8 169.4 207.4 Trademarks, not subject to amortization 134.4 — 134.4 Total $ 511.2 $ 169.4 $ 341.8 |
Intangible Assets, Not Subject to Amortization | The following table summarizes the Company’s other intangible assets at March 31, 2017 : Gross Amount Accumulated Amortization Net (in millions) Intangible assets subject to amortization: Trademarks $ 41.9 $ 19.2 $ 22.7 Technology 114.3 39.2 75.1 Customer relationships 225.2 119.7 105.5 Total intangible assets subject to amortization 381.4 178.1 203.3 Trademarks, not subject to amortization 136.1 — 136.1 Total $ 517.5 $ 178.1 $ 339.4 The following table summarizes the Company’s other intangible assets at December 31, 2016 : Gross Amount Accumulated Amortization Net Amount (in millions) Intangible assets subject to amortization: Trademarks $ 41.5 $ 18.2 $ 23.3 Technology 112.6 36.3 76.3 Customer relationships 222.7 114.9 107.8 Total intangible assets subject to amortization 376.8 169.4 207.4 Trademarks, not subject to amortization 134.4 — 134.4 Total $ 511.2 $ 169.4 $ 341.8 The following table summarizes the Company’s other intangible assets at March 31, 2017 : Gross Amount Accumulated Amortization Net (in millions) Intangible assets subject to amortization: Trademarks $ 41.9 $ 19.2 $ 22.7 Technology 114.3 39.2 75.1 Customer relationships 225.2 119.7 105.5 Total intangible assets subject to amortization 381.4 178.1 203.3 Trademarks, not subject to amortization 136.1 — 136.1 Total $ 517.5 $ 178.1 $ 339.4 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt for the Company consists of the following: March 31, 2017 December 31, 2016 Principal Unamortized Discount and Debt Issuance Costs Net Principal Unamortized Discount and Debt Issuance Costs Net (in millions) Senior secured term loan facility due September 2023 $ 944.6 $ 12.6 $ 932.0 $ — $ — $ — 7.75% senior unsecured notes due 2021 — — — 464.4 7.3 457.1 Senior secured term loan facility due September 2020 — — — 482.0 5.1 476.9 Borrowings under other lines of credit 7.0 — 7.0 7.0 — 7.0 Capital lease obligations and other 0.3 — 0.3 0.4 — 0.4 951.9 12.6 939.3 953.8 12.4 941.4 Less current portion (16.5 ) — (16.5 ) (7.3 ) — (7.3 ) $ 935.4 $ 12.6 $ 922.8 $ 946.5 $ 12.4 $ 934.1 |
Net Loss Per Share and Shareh23
Net Loss Per Share and Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator of the Basic and Diluted Net Loss Per Share | The following is a reconciliation of the numerator and denominator of the basic and diluted net (loss) earnings per share ("EPS") computations: Three Months Ended March 31, 2017 2016 (in millions, except common share and per common share amounts) Numerator: Net (loss) earnings $ (24.6 ) $ 9.8 Denominator: Denominator for basic EPS–weighted-average common shares 68,260,015 67,179,348 Dilutive effect of stock-based compensation arrangements — 2,496,120 Denominator for diluted EPS–adjusted weighted-average common shares 68,260,015 69,675,468 Basic EPS $ (0.36 ) $ 0.15 Diluted EPS $ (0.36 ) $ 0.14 |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Designated Cash Flow Hedges on the Financial Statements | The following table provides the effect of the Company’s foreign currency forward contracts designated as cash flow hedges on the Company’s Condensed Consolidated Financial Statements for the three months ended March 31, 2017 and 2016 : Type of instrument: Gain (Loss) Recognized in OCI on Derivative (Effective Portion) Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (in millions) Three Months Ended March 31, 2017 Foreign exchange contracts $ 0.1 $ — Three Months Ended March 31, 2016 Foreign exchange contracts $ 0.5 $ (0.1 ) |
Derivative Assets and Liabilities Measured at Fair Value | The derivative assets and liabilities measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016 were as follows: Balance Sheet Location Total Level 1 Level 2 Level 3 (in millions) March 31, 2017 Interest rate swap agreements (asset position) Other noncurrent assets $ 0.3 $ — $ 0.3 $ — Interest rate swap agreements (liability position) Other current liabilities $ 0.4 $ — $ 0.4 $ — December 31, 2016 Foreign currency forward contracts (liability position) Other current liabilities $ 0.6 $ — $ 0.6 $ — |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Changes in Each Component of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in the accumulated balances for each component of accumulated other comprehensive income (loss): Foreign Currency Translation Unrecognized Post- Retirement Plan Losses Derivative Financial Instruments Total (in millions) Balance at December 31, 2015 $ (104.5 ) $ (4.6 ) $ — $ (109.1 ) Other comprehensive income (loss) before reclassifications 10.0 (0.1 ) 0.5 10.4 Amounts reclassified from accumulated other comprehensive income (loss) — — 0.1 0.1 Other comprehensive income (loss) 10.0 (0.1 ) 0.6 10.5 Balance at March 31, 2016 $ (94.5 ) $ (4.7 ) $ 0.6 $ (98.6 ) Balance at December 31, 2016 $ (150.0 ) $ (7.3 ) $ (0.6 ) $ (157.9 ) Other comprehensive income (loss) before reclassifications 18.8 (0.3 ) 0.1 18.6 Amounts reclassified from accumulated other comprehensive income (loss) — 0.2 — 0.2 Other comprehensive income (loss) 18.8 (0.1 ) 0.1 18.8 Balance at March 31, 2017 $ (131.2 ) $ (7.4 ) $ (0.5 ) $ (139.1 ) |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the reclassifications out of accumulated other comprehensive income (loss) during the three months ended March 31, 2017 and 2016 : Classification Three Months Ended March 31, of Expense 2017 2016 (in millions) Unrealized pension and post-retirement obligations: Adjustment of pension and post-retirement obligations (a) $ (0.2 ) $ — Tax benefit (c) — — Adjustment of pension and post-retirement obligations, net of tax (0.2 ) — Derivative financial instruments: Gain (loss) on derivative financial instruments (b) — (0.1 ) Tax benefit (c) — — Gain (loss) on derivative financial instruments, net of tax — (0.1 ) Total reclassifications from accumulated other comprehensive income (loss) $ (0.2 ) $ (0.1 ) (a) Amount is included in the calculation of pension cost within cost of sales and selling, general and administrative expense in the Company's Condensed Consolidated Statements of Operations. (b) Amount is included in cost of sales and gain on currency translation in the Company's Condensed Consolidated Statements of Operations. (c) These amounts are included in income tax expense in the Company's Condensed Consolidated Statements of Operations. |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Product Warranties Disclosures [Abstract] | |
Changes in the Company's Warranty Reserves | The following table summarizes changes in the Company’s warranty reserves for the periods indicated. Accrued warranty reserves are included in other current liabilities in the Company's Condensed Consolidated Balance Sheets: Three Months Ended March 31, 2017 2016 (in millions) Balance at beginning of period $ 8.7 $ 8.3 Warranty expense 4.0 2.8 Warranty claims paid (4.9 ) (2.9 ) Foreign currency translation adjustments 0.2 0.2 Balance at end of period $ 8.0 $ 8.4 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segment Information | The following table summarizes total assets by segment: March 31, 2017 December 31, (in millions) Advanced Plastic Processing Technologies $ 515.6 $ 503.0 Melt Delivery and Control Systems 1,026.4 1,003.8 Fluid Technologies 143.1 141.6 Corporate 29.1 73.6 Total assets $ 1,714.2 $ 1,722.0 The following table summarizes long-lived assets, net by segment: March 31, 2017 December 31, (in millions) Advanced Plastic Processing Technologies $ 126.2 $ 121.4 Melt Delivery and Control Systems 102.3 101.0 Fluid Technologies 15.5 15.2 Corporate 5.8 6.1 Total long-lived assets, net $ 249.8 $ 243.7 The following tables summarize segment information: Three Months Ended March 31, 2017 2016 (in millions) Net sales to external customers: Advanced Plastic Processing Technologies $ 156.6 $ 156.1 Melt Delivery and Control Systems 99.8 93.0 Fluid Technologies 29.0 28.2 Total net sales to external customers $ 285.4 $ 277.3 Three Months Ended March 31, 2017 2016 (in millions) Operating earnings (loss): Advanced Plastic Processing Technologies $ 2.1 $ 9.8 Melt Delivery and Control Systems 25.5 28.2 Fluid Technologies 4.6 4.1 Corporate (12.5 ) (10.1 ) Total operating earnings $ 19.7 $ 32.0 Capital expenditures: Advanced Plastic Processing Technologies $ 5.9 $ 5.6 Melt Delivery and Control Systems 6.6 1.7 Fluid Technologies 0.1 0.1 Corporate 0.1 0.6 Total capital expenditures $ 12.7 $ 8.0 Depreciation and amortization: Advanced Plastic Processing Technologies $ 4.8 $ 5.1 Melt Delivery and Control Systems 8.2 8.2 Fluid Technologies 1.2 1.4 Corporate 0.3 0.1 Total depreciation and amortization $ 14.5 $ 14.8 |
Net Sales to External Customers, by Geographic Region | Three Months Ended March 31, 2017 2016 (in millions) Net sales to external customers: United States $ 127.2 $ 128.2 Rest of World 158.2 149.1 Total net sales to external customers $ 285.4 $ 277.3 |
Long-lived Assets, by Geographic Region | March 31, 2017 December 31, 2016 (in millions) Long-lived assets, net: United States $ 79.9 $ 80.3 Rest of World 169.9 163.4 Total long-lived assets, net $ 249.8 $ 243.7 |
Background and Basis of Prese28
Background and Basis of Presentation (Details) $ in Millions | Jan. 01, 2017USD ($) |
ASU 2016-09 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Deferred tax asset recorded | $ 1.1 |
ASU 2016-09 [Member] | Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | 0.8 |
ASU 2016-16 [Member] | Retained Earnings [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect adjustment | $ 1.9 |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets - Goodwill, by Reportable Segment (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance | $ 507.9 |
Foreign currency translation adjustments | 6.4 |
Balance | 514.3 |
Corporate [Member] | |
Goodwill [Roll Forward] | |
Balance | 0 |
Foreign currency translation adjustments | 0 |
Balance | 0 |
Advanced Plastic Processing Technologies [Member] | Segments [Member] | |
Goodwill [Roll Forward] | |
Balance | 37 |
Foreign currency translation adjustments | 0 |
Balance | 37 |
Melt Delivery and Control Systems [Member] | Segments [Member] | |
Goodwill [Roll Forward] | |
Balance | 424 |
Foreign currency translation adjustments | 6.4 |
Balance | 430.4 |
Fluid Technologies [Member] | Segments [Member] | |
Goodwill [Roll Forward] | |
Balance | 46.9 |
Foreign currency translation adjustments | 0 |
Balance | $ 46.9 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The following table summarizes the Company’s other intangible assets at March 31, 2017 : Gross Amount Accumulated Amortization Net (in millions) Intangible assets subject to amortization: Trademarks $ 41.9 $ 19.2 $ 22.7 Technology 114.3 39.2 75.1 Customer relationships 225.2 119.7 105.5 Total intangible assets subject to amortization 381.4 178.1 203.3 Trademarks, not subject to amortization 136.1 — 136.1 Total $ 517.5 $ 178.1 $ 339.4 The following table summarizes the Company’s other intangible assets at March 31, 2017 : Gross Amount Accumulated Amortization Net (in millions) Intangible assets subject to amortization: Trademarks $ 41.9 $ 19.2 $ 22.7 Technology 114.3 39.2 75.1 Customer relationships 225.2 119.7 105.5 Total intangible assets subject to amortization 381.4 178.1 203.3 Trademarks, not subject to amortization 136.1 — 136.1 Total $ 517.5 $ 178.1 $ 339.4 The following table summarizes the Company’s other intangible assets at December 31, 2016 : Gross Amount Accumulated Amortization Net Amount (in millions) Intangible assets subject to amortization: Trademarks $ 41.5 $ 18.2 $ 23.3 Technology 112.6 36.3 76.3 Customer relationships 222.7 114.9 107.8 Total intangible assets subject to amortization 376.8 169.4 207.4 Trademarks, not subject to amortization 134.4 — 134.4 Total $ 511.2 $ 169.4 $ 341.8 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | $ 381.4 | $ 376.8 | |
Accumulated Amortization | 178.1 | 169.4 | |
Net Amount | 203.3 | 207.4 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Gross Amount | 517.5 | 511.2 | |
Accumulated Amortization | 178.1 | 169.4 | |
Net Amount | 339.4 | 341.8 | |
Amortization of intangible assets | 7 | $ 7.7 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 41.9 | 41.5 | |
Accumulated Amortization | 19.2 | 18.2 | |
Net Amount | 22.7 | 23.3 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 19.2 | 18.2 | |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 114.3 | 112.6 | |
Accumulated Amortization | 39.2 | 36.3 | |
Net Amount | 75.1 | 76.3 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 39.2 | 36.3 | |
Customer relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Amount | 225.2 | 222.7 | |
Accumulated Amortization | 119.7 | 114.9 | |
Net Amount | 105.5 | 107.8 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Accumulated Amortization | 119.7 | 114.9 | |
Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Trademarks, not subject to amortization | $ 136.1 | $ 134.4 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Contingency [Line Items] | |
U.S. statutory rate | 35.00% |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Feb. 15, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | |||
Principal | $ 951.9 | $ 953.8 | |
Unamortized Discount and Debt Issuance Costs | 12.6 | 12.4 | |
Net | 939.3 | 941.4 | |
Principal, Current portion | (16.5) | (7.3) | |
Unamortized Discount and Debt Issuance Costs, Current portion | 0 | 0 | |
Net, Current portion | (16.5) | (7.3) | |
Principal, Net | 935.4 | 946.5 | |
Unamortized Discount and Debt Issuance Costs, Net | 12.6 | 12.4 | |
Net | 922.8 | 934.1 | |
Secured Debt [Member] | Senior Secured Term Loan Facility Due September 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 944.6 | $ 482 | 0 |
Unamortized Discount and Debt Issuance Costs | 12.6 | 0 | |
Net | 932 | 0 | |
Senior Notes [Member] | 7.75% senior unsecured notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 0 | 464.4 | 464.4 |
Unamortized Discount and Debt Issuance Costs | 0 | 7.3 | |
Net | 0 | 457.1 | |
Senior Notes [Member] | Secured Debt [Member] | Senior secured term loan facility due September 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 0 | 482 | |
Unamortized Discount and Debt Issuance Costs | 0 | 5.1 | |
Net | 0 | 476.9 | |
Line of Credit [Member] | Other Lines of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 7 | 7 | |
Unamortized Discount and Debt Issuance Costs | 0 | 0 | |
Net | 7 | 7 | |
Line of Credit [Member] | Secured Debt [Member] | Senior Secured Term Loan Facility Due September 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Principal | $ 947 | ||
Capital Lease Obligations and Other [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 0.3 | 0.4 | |
Unamortized Discount and Debt Issuance Costs | 0 | 0 | |
Net | $ 0.3 | $ 0.4 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Feb. 15, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | May 14, 2015 |
Debt Instrument [Line Items] | |||||
Principal | $ 951,900,000 | $ 953,800,000 | |||
Gain (loss) on debt extinguishment | (25,200,000) | $ 0 | |||
Premium paid on debt redemption | (18,000,000) | $ 0 | |||
Deferred financing costs capitalized | 4,600,000 | ||||
Loss on debt extinguishment [Member] | |||||
Debt Instrument [Line Items] | |||||
Gain (loss) on debt extinguishment | (25,200,000) | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 482,000,000 | 944,600,000 | 0 | ||
Debt Instrument, Issuance Price, Percentage | 99.625% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Floor Interest Rate | 0.00% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Leverage Ratio | 3.5 | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Covenant, Borrowings Greater Than Leverage Ratio [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | Debt Instrument, Covenant, Borrowings Less Than Leverage Ratio [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.75% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | Base Rate [Member] | Debt Instrument, Covenant, Borrowings Greater Than Leverage Ratio [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | Base Rate [Member] | Debt Instrument, Covenant, Borrowings Less Than Leverage Ratio [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | Post-Public Offering, Interest Rate, Option Two [Member] | Federal Funds Effective Swap Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | Post-Public Offering, Interest Rate, Option Two [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Senior Secured Term Loan Facility Due September 2023 [Member] | Secured Debt [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 947,000,000 | ||||
Senior secured term loan facility due September 2020 [Member] | Secured Debt [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 730,000,000 | ||||
Senior secured term loan facility due September 2020 [Member] | Secured Debt [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | 0 | 482,000,000 | |||
7.75% senior unsecured notes due 2021 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 464,400,000 | 0 | $ 464,400,000 | ||
Interest rate | 7.75% | ||||
Premium paid on debt redemption | 18,000,000 | ||||
Senior Secured Notes due 2021 and Senior Secured Term Loan Facility due September 2020 [Member] | Senior Secured Notes and Line of Credit [Member] | Loss on debt extinguishment [Member] | |||||
Debt Instrument [Line Items] | |||||
Write-off of deferred financing costs and debt discount | $ 7,200,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)plan | Mar. 31, 2016USD ($) | |
Cost of sales and selling, general and administrative expenses [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net periodic pension expense | $ | $ 0.4 | $ 0.3 |
Foreign Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of noncontributory defined benefit pension plans | 3 | |
Foreign Pension Plan [Member] | United Kingdom [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of noncontributory defined benefit pension plans | 1 | |
Foreign Pension Plan [Member] | Germany [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of noncontributory defined benefit pension plans | 2 |
Net Loss Per Share and Shareh35
Net Loss Per Share and Shareholders' Equity - Reconciliation of Numerator and Denominator of the Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator: | ||
Net (loss) earnings | $ (24.6) | $ 9.8 |
Denominator: | ||
Denominator for basic EPS–weighted-average common shares (in shares) | 68,260,015 | 67,179,348 |
Dilutive effect of stock-based compensation arrangements (in shares) | 0 | 2,496,120 |
Denominator for diluted EPS–adjusted weighted-average common shares (in shares) | 68,260,015 | 69,675,468 |
Basic EPS (in dollars per share) | $ (0.36) | $ 0.15 |
Diluted EPS (in dollars per share) | $ (0.36) | $ 0.14 |
Net Loss Per Share and Shareh36
Net Loss Per Share and Shareholders' Equity - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017shares | |
Restricted Stock [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from the diluted EPS calculation (in shares) | 674,023 |
Restricted Stock Units [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from the diluted EPS calculation (in shares) | 194,733 |
Performance-based Awards [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from the diluted EPS calculation (in shares) | 83,130 |
Stock Options [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from the diluted EPS calculation (in shares) | 5,302,342 |
Stock-based Compensation (Detai
Stock-based Compensation (Details) - 2015 Equity Incentive Plan [Member] - shares | Mar. 01, 2017 | Jun. 30, 2015 | Mar. 31, 2017 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options, granted (in shares) | 453,532 | ||
Award vesting period | 4 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options, granted (in shares) | 310,946 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options, granted (in shares) | 195,779 | ||
Period from public disclosure in 2016 of financial results for fiscal year 2015 to vesting date | 3 years | ||
Performance-based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity instruments other than options, granted (in shares) | 83,130 | ||
Award vesting period | 3 years | ||
Minimum [Member] | Performance-based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage of award | 50.00% | ||
Maximum [Member] | Performance-based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payout percentage of award | 200.00% |
Derivative Financial Instrume38
Derivative Financial Instruments - Effect of Designated Cash Flow Hedges on the Financial Statements (Details) - Foreign Currency Forward [Member] - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) on Sale of Derivatives | $ (0.1) | |
Gain (Loss) Recognized in OCI on Derivative (Effective Portion) | $ 0.1 | 0.5 |
Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | $ 0 | $ (0.1) |
Derivative Financial Instrume39
Derivative Financial Instruments - Derivative Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Foreign Currency Forward [Member] | Other current liabilities [Member] | Cash Flow Hedging [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 | $ 0.6 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Other noncurrent assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0.3 | |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0.4 | |
Fair Value, Measurements, Recurring [Member] | Foreign Currency Forward [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0.6 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | Other noncurrent assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Interest Rate Swap [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Foreign Currency Forward [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | Other noncurrent assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0.3 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0.4 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign Currency Forward [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | 0.6 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | Other noncurrent assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Asset | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Interest Rate Swap [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Foreign Currency Forward [Member] | Other current liabilities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liability | $ 0 |
Derivative Financial Instrume40
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Feb. 15, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||||
Cash flow hedge ineffectiveness | $ 0.1 | |||
Foreign Currency Forward [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 4 | $ 7 | ||
Remaining maturity of outstanding instruments | 8 months | |||
Foreign Currency Forward [Member] | Not Designated as Hedging Instrument [Member] | Foreign Currency Gain (Loss) [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) related to changes in fair value of derivative instruments | $ 0.1 | |||
Foreign Currency Forward [Member] | Other current liabilities [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative [Line Items] | ||||
Foreign currency forward contracts - liability position | 0.1 | |||
Foreign Currency Forward [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Gain (loss) on settlement of derivative instruments | $ (0.1) | |||
Foreign Currency Forward [Member] | Cash Flow Hedging [Member] | Other current liabilities [Member] | ||||
Derivative [Line Items] | ||||
Derivative Liability | $ 0 | $ 0.6 | ||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Notional amounts | $ 400 | |||
Secured Debt [Member] | Senior Secured Term Loan Facility Due September 2023 [Member] | ||||
Derivative [Line Items] | ||||
Effective interest rate | 2.062% |
Accumulated Other Comprehensi41
Accumulated Other Comprehensive Income (Loss) - Changes in Each Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | $ 434.9 | |
Total other comprehensive income, net of tax | 18.8 | $ 10.5 |
Balance | 431 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (157.9) | (109.1) |
Other comprehensive income (loss) before reclassifications | 18.6 | 10.4 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.2 | 0.1 |
Total other comprehensive income, net of tax | 18.8 | 10.5 |
Balance | (139.1) | (98.6) |
Foreign Currency Translation [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (150) | (104.5) |
Other comprehensive income (loss) before reclassifications | 18.8 | 10 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income, net of tax | 18.8 | 10 |
Balance | (131.2) | (94.5) |
Unrecognized Post- Retirement Plan Losses [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (7.3) | (4.6) |
Other comprehensive income (loss) before reclassifications | (0.3) | (0.1) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.2 | 0 |
Total other comprehensive income, net of tax | (0.1) | (0.1) |
Balance | (7.4) | (4.7) |
Derivative Financial Instruments [Member] | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Balance | (0.6) | 0 |
Other comprehensive income (loss) before reclassifications | 0.1 | 0.5 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0.1 |
Total other comprehensive income, net of tax | 0.1 | 0.6 |
Balance | $ (0.5) | $ 0.6 |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Derivative financial instruments: | ||
Tax benefit | $ (6.7) | $ (6.9) |
Total reclassifications from accumulated other comprehensive income (loss) | (0.2) | (0.1) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of Goods and Services Sold and Selling, General and Administrative Expense | (0.2) | 0 |
Derivative financial instruments: | ||
Tax benefit | 0 | 0 |
Total reclassifications from accumulated other comprehensive income (loss) | 0.2 | 0 |
Derivative Financial Instruments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Derivative financial instruments: | ||
Tax benefit | 0 | 0 |
Total reclassifications from accumulated other comprehensive income (loss) | 0 | 0.1 |
Cost of Goods and Services Sold and Foreign Currency Transaction Gain (Loss), before Tax | $ 0 | $ 0.1 |
Warranty Reserves (Details)
Warranty Reserves (Details) - Other current liabilities [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance | $ 8.7 | $ 8.3 |
Warranty expense | 4 | 2.8 |
Warranty claims paid | (4.9) | (2.9) |
Foreign currency translation adjustments | 0.2 | 0.2 |
Balance | $ 8 | $ 8.4 |
Restructuring Reserves (Details
Restructuring Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Assets held-for-sale, not part of disposal group, current | $ 3.5 | $ 0.6 | |
Melt Delivery and Control Systems [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Assets held-for-sale, not part of disposal group, current | 3 | ||
Other current liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Liability, severance-related actions | 5 | $ 2.6 | |
Other expense, net [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance expense | $ 2.6 |
Business Segment Information -
Business Segment Information - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | segment | 3 | |
Operating loss | $ (19.7) | $ (32) |
Segments [Member] | Melt Delivery and Control Systems [Member] | ||
Segment Reporting Information [Line Items] | ||
Operating loss | $ (25.5) | $ (28.2) |
Business Segment Information 46
Business Segment Information - Business Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 1,714.2 | $ 1,722 | |
Total long-lived assets | 249.8 | 243.7 | |
Total net sales to external customers | 285.4 | $ 277.3 | |
Total operating earnings | 19.7 | 32 | |
Total capital expenditures | 12.7 | 8 | |
Total depreciation and amortization | 14.5 | 14.8 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 29.1 | 73.6 | |
Total long-lived assets | 5.8 | 6.1 | |
Total operating earnings | (12.5) | (10.1) | |
Total capital expenditures | 0.1 | 0.6 | |
Total depreciation and amortization | 0.3 | 0.1 | |
Advanced Plastic Processing Technologies [Member] | Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 515.6 | 503 | |
Total long-lived assets | 126.2 | 121.4 | |
Total net sales to external customers | 156.6 | 156.1 | |
Total operating earnings | 2.1 | 9.8 | |
Total capital expenditures | 5.9 | 5.6 | |
Total depreciation and amortization | 4.8 | 5.1 | |
Melt Delivery and Control Systems [Member] | Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 1,026.4 | 1,003.8 | |
Total long-lived assets | 102.3 | 101 | |
Total net sales to external customers | 99.8 | 93 | |
Total operating earnings | 25.5 | 28.2 | |
Total capital expenditures | 6.6 | 1.7 | |
Total depreciation and amortization | 8.2 | 8.2 | |
Fluid Technologies [Member] | Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 143.1 | 141.6 | |
Total long-lived assets | 15.5 | $ 15.2 | |
Total net sales to external customers | 29 | 28.2 | |
Total operating earnings | 4.6 | 4.1 | |
Total capital expenditures | 0.1 | 0.1 | |
Total depreciation and amortization | $ 1.2 | $ 1.4 |
Business Segment Information 47
Business Segment Information - Net Sales to External Customers and Long-lived Assets, by Geographic Region (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales to external customers | $ 285.4 | $ 277.3 | |
Total long-lived assets | 249.8 | $ 243.7 | |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales to external customers | 127.2 | 128.2 | |
Total long-lived assets | 79.9 | 80.3 | |
Rest of World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total net sales to external customers | 158.2 | $ 149.1 | |
Total long-lived assets | $ 169.9 | $ 163.4 |
Subsequent Events (Details)
Subsequent Events (Details) CAD in Thousands, $ in Millions | Apr. 12, 2017USD ($)property | Apr. 12, 2017CADproperty | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Apr. 12, 2017CAD |
Subsequent Event [Line Items] | |||||
Proceeds from sale of properties | $ | $ 3.5 | $ 0.6 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of properties sold | property | 2 | 2 | |||
Proceeds from sale of properties | $ 10.7 | CAD 14,250 | |||
Lease term | 15 years | 15 years | |||
Total due under lease agreement | $ 11.3 | CAD 15,000 |