Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document Document And Entity Information [Abstract] | ||
Entity Registrant Name | FEDERAL SIGNAL CORP /DE/ | |
Entity Central Index Key | 277,509 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Trading Symbol | FSS | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 60,199,716 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Net sales | $ 291 | $ 224.4 | $ 540.7 | $ 402.2 |
Cost of sales | 211.8 | 169.7 | 399.6 | 303.9 |
Gross profit | 79.2 | 54.7 | 141.1 | 98.3 |
Selling, engineering, general and administrative expenses | 40.7 | 34.8 | 82.5 | 66.2 |
Acquisition and integration-related expenses | 0.4 | 1 | 0.9 | 1.5 |
Restructuring | 0 | 0.1 | 0 | 0.4 |
Operating income | 38.1 | 18.8 | 57.7 | 30.2 |
Interest expense | 2.5 | 1.3 | 5 | 1.9 |
Other expense (income), net | 0.4 | (0.1) | 0.5 | (0.3) |
Income before income taxes | 35.2 | 17.6 | 52.2 | 28.6 |
Income tax expense | 8.3 | 6.1 | 12.4 | 9.9 |
Income from continuing operations | 26.9 | 11.5 | 39.8 | 18.7 |
Loss from discontinued operations and disposal, net of income tax | 0 | (0.1) | 0 | 0 |
Net income | $ 26.9 | $ 11.4 | $ 39.8 | $ 18.7 |
Basic earnings per share: | ||||
Earnings from continuing operations (usd per share) | $ 0.45 | $ 0.19 | $ 0.67 | $ 0.31 |
Loss from discontinued operations and disposal, net of tax (usd per share) | 0 | 0 | 0 | 0 |
Net earnings per share (usd per share) | 0.45 | 0.19 | 0.67 | 0.31 |
Diluted earnings per share: | ||||
Earnings from continuing operations (usd per share) | 0.44 | 0.19 | 0.65 | 0.31 |
Loss from discontinued operations and disposal, net of tax (usd per share) | 0 | 0 | 0 | 0 |
Net earnings per share (usd per share) | $ 0.44 | $ 0.19 | $ 0.65 | $ 0.31 |
Weighted average common shares outstanding: | ||||
Basic (shares) | 59.9 | 59.7 | 59.9 | 59.7 |
Diluted (shares) | 61 | 60.3 | 60.9 | 60.3 |
Cash dividends declared per common share (usd per share) | $ 0.08 | $ 0.07 | $ 0.15 | $ 0.14 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 26.9 | $ 11.4 | $ 39.8 | $ 18.7 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustment | (5.2) | 5 | (3.2) | 6.2 |
Change in unrecognized net actuarial losses related to pension benefit plans, net of income tax expense of $0.2, $0.3, $0.4 and $0.5, respectively | 1.7 | (0.1) | 1.8 | 0.1 |
Change in unrealized net gain on derivatives, net of income tax expense of $0.1, $0.2, $0.3 and $0.2, respectively | 0.2 | 0.2 | 1 | 0.2 |
Total other comprehensive (loss) income | (3.3) | 5.1 | (0.4) | 6.5 |
Comprehensive income | $ 23.6 | $ 16.5 | $ 39.4 | $ 25.2 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax expense on change in unrecognized net actuarial losses related to pension benefit plans | $ 0.2 | $ 0.3 | $ 0.4 | $ 0.5 |
Tax expense on unrealized net gain on derivatives | $ 0.1 | $ 0.2 | $ 0.3 | $ 0.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 36 | $ 37.5 |
Accounts receivable, net of allowances for doubtful accounts of $1.3 and $1.1, respectively | 131.2 | 118.2 |
Inventories | 147.7 | 137.2 |
Prepaid expenses and other current assets | 10.1 | 10.9 |
Total current assets | 325 | 303.8 |
Properties and equipment, net of accumulated depreciation of $113.9 and $108.9, respectively | 61 | 60.1 |
Rental equipment, net of accumulated depreciation of $22.3 and $20.0, respectively | 94.2 | 87.2 |
Goodwill | 376 | 377.3 |
Intangible assets, net of accumulated amortization of $9.5 and $5.5, respectively | 147.4 | 151.8 |
Deferred tax assets | 4.6 | 6.2 |
Deferred charges and other assets | 7.5 | 5.4 |
Long-term assets of discontinued operations | 0.5 | 0.5 |
Total assets | 1,016.2 | 992.3 |
Current liabilities: | ||
Current portion of long-term borrowings and capital lease obligations | 0.3 | 0.3 |
Accounts payable | 66.3 | 51.5 |
Customer deposits | 8.6 | 6.5 |
Accrued liabilities: | ||
Compensation and withholding taxes | 22.1 | 22.2 |
Other current liabilities | 53.4 | 36.1 |
Current liabilities of discontinued operations | 0.5 | 0.5 |
Total current liabilities | 151.2 | 117.1 |
Long-term borrowings and capital lease obligations | 247.8 | 277.4 |
Long-term pension and other postretirement benefit liabilities | 53.3 | 56.6 |
Deferred gain | 7.8 | 8.7 |
Deferred tax liabilities | 46.8 | 45.4 |
Other long-term liabilities | 15.4 | 28.2 |
Long-term liabilities of discontinued operations | 1.5 | 1.5 |
Total liabilities | 523.8 | 534.9 |
Stockholders’ equity: | ||
Common stock, $1 par value per share, 90.0 shares authorized, 66.3 and 66.1 shares issued, respectively | 66.3 | 66.1 |
Capital in excess of par value | 212.7 | 207.7 |
Retained earnings | 377.4 | 346.6 |
Treasury stock, at cost, 6.1 and 6.1 shares, respectively | (86.7) | (86.1) |
Accumulated other comprehensive loss | (77.3) | (76.9) |
Total stockholders’ equity | 492.4 | 457.4 |
Total liabilities and stockholders’ equity | $ 1,016.2 | $ 992.3 |
Condensed Consolidated Balance6
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 1.3 | $ 1.1 |
Accumulated depreciation, properties and equipment | 113.9 | 108.9 |
Accumulated depreciation, rental equipment | 22.3 | 20 |
Accumulated amortization, intangible assets | $ 9.5 | $ 5.5 |
Common stock, par value (usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (shares) | 66,300,000 | 66,100,000 |
Treasury stock, shares (shares) | 6,100,000 | 6,100,000 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 39.8 | $ 18.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17.6 | 12.3 |
Deferred financing costs | 0.2 | 0.2 |
Deferred gain | (0.9) | (1) |
Stock-based compensation expense | 4 | 2.7 |
Pension expense, net of funding | (3.2) | (2.8) |
Changes in fair value of contingent consideration and deferred payment | 0.6 | 0.5 |
Deferred income taxes | 2 | 2.8 |
Changes in operating assets and liabilities | (22.3) | 12.4 |
Net cash provided by continuing operating activities | 37.8 | 45.8 |
Net cash used for discontinued operating activities | 0 | (0.3) |
Net cash provided by operating activities | 37.8 | 45.5 |
Investing activities: | ||
Purchases of properties and equipment | (7) | (2.7) |
Proceeds from (payments for) acquisition-related activity | 3 | (269.2) |
Other, net | 0.1 | 0.1 |
Net cash used for continuing investing activities | (3.9) | (271.8) |
Net cash used for discontinued investing activities | 0 | (1.1) |
Net cash used for investing activities | (3.9) | (272.9) |
Financing activities: | ||
(Decrease) increase in revolving lines of credit, net | (26.6) | 223 |
Payments of debt financing fees | 0 | (0.2) |
Redemptions of common stock to satisfy withholding taxes related to stock-based compensation | (0.3) | (2.4) |
Cash dividends paid to stockholders | (9) | (8.4) |
Proceeds from stock-based compensation activity | 0.9 | 1.2 |
Other, net | 0.1 | (0.2) |
Net cash (used for) provided by continuing financing activities | (34.9) | 213 |
Net cash used for discontinued financing activities | 0 | 0 |
Net cash (used for) provided by financing activities | (34.9) | 213 |
Effects of foreign exchange rate changes on cash and cash equivalents | (0.5) | 0.7 |
Decrease in cash and cash equivalents | (1.5) | (13.7) |
Cash and cash equivalents at beginning of year | 37.5 | 50.7 |
Cash and cash equivalents at end of period | $ 36 | $ 37 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Loss | |
Beginning Balance at Dec. 31, 2016 | $ 394.1 | $ 65.4 | $ 200.3 | $ 301.8 | $ (81.4) | $ (92) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 18.7 | 18.7 | |||||
Total other comprehensive income | 6.5 | 6.5 | [1] | ||||
Cash dividends declared | (8.4) | (8.4) | |||||
Stock-based payments: | |||||||
Stock-based compensation | 2.1 | 2.1 | |||||
Stock option exercises and other | 1.3 | 0.3 | 2.2 | (1.2) | |||
Performance share unit transactions | (1.9) | 0.2 | (0.2) | (1.9) | |||
Ending Balance at Jun. 30, 2017 | 412.4 | 65.9 | 204.4 | 312.1 | (84.5) | (85.5) | |
Beginning Balance at Dec. 31, 2017 | 457.4 | 66.1 | 207.7 | 346.6 | (86.1) | (76.9) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 39.8 | 39.8 | |||||
Total other comprehensive income | (0.4) | (0.4) | [1] | ||||
Cash dividends declared | (9) | (9) | |||||
Stock-based payments: | |||||||
Stock-based compensation | 3.3 | 3.3 | |||||
Stock option exercises and other | 1.3 | 0.2 | 1.7 | (0.6) | |||
Ending Balance at Jun. 30, 2018 | $ 492.4 | $ 66.3 | $ 212.7 | $ 377.4 | $ (86.7) | $ (77.3) | |
[1] | Amounts in parentheses indicate losses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Description of the Business Federal Signal Corporation was founded in 1901 and was reincorporated as a Delaware corporation in 1969. References herein to the “Company,” “we,” “our” or “us” refer collectively to Federal Signal Corporation and its subsidiaries. Products manufactured and supplied, and services rendered by the Company are divided into two operating segments: the Environmental Solutions Group and the Safety and Security Systems Group. The individual operating businesses are organized as such because they share certain characteristics, including technology, marketing, distribution and product application, which create long-term synergies. The Company’s reportable segments are consistent with its operating segments. These segments are discussed in Note 10 – Segment Information. Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements represent the consolidation of Federal Signal Corporation and its subsidiaries included herein and have been prepared by the Company pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures presented herein are adequate to ensure the information presented is not misleading. Except as otherwise noted, these condensed consolidated financial statements have been prepared in accordance with the Company’s accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , and should be read in conjunction with those consolidated financial statements and the notes thereto. These condensed consolidated financial statements include all normal and recurring adjustments that we considered necessary to present a fair statement of our results of operations, financial condition and cash flow. Intercompany balances and transactions have been eliminated in consolidation. In addition, certain prior year amounts have been reclassified to conform to current year presentation. The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. While we label our quarterly information using a calendar convention whereby our first, second and third quarters are labeled as ending on March 31, June 30 and September 30, respectively, it is our longstanding practice to establish interim quarterly closing dates based on a 13-week period ending on a Saturday, with our fiscal year ending on December 31. The effects of this practice are not material and exist only within a reporting year. Recent Accounting Pronouncements and Accounting Changes In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) , which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition . Topic 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted this guidance effective January 1, 2018 using the modified retrospective transition method. See Note 2 – Revenue Recognition for further details. In February 2016, the FASB issued ASU No. 2016-02, Leases (“Topic 842”) , which supersedes the lease accounting requirements in ASC 840, Leases (“Topic 840”) . Topic 842 requires organizations that are lessees in operating lease arrangements to recognize right-of-use assets and lease liabilities on the balance sheet and requires disclosure of key qualitative and quantitative information about leasing arrangements by both lessors and lessees. Topic 842 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. As originally issued, entities would have been required to recognize and measure operating leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides entities with an alternative transition method that permits application of the new guidance at the beginning of the period of adoption, with comparative periods continuing to be reported under Topic 840. In preparation for the adoption of the new standard, the Company has established a project management team responsible for the implementation of Topic 842. The project management team is currently assessing the transition methods and impact that the adoption of this guidance will have on the Company’s consolidated financial statements. This assessment includes the evaluation of the Company’s current lease contracts and other contracts that may contain lease components. In addition, the Company is in the process of designing and implementing internal controls over gathering and reporting the information required to support the expanded disclosure requirements. Based on the implementation procedures performed to date, in addition to the expanded disclosure requirements, the Company currently anticipates the most significant adoption impacts will include (i) the recognition of right-of-use assets and lease liabilities on its consolidated balance sheets, and (ii) the recognition of the remaining deferred gain associated with the sale-leaseback transactions that the Company entered into in July 2008 for its Elgin, Illinois and University Park, Illinois plant locations as a cumulative effect adjustment to opening retained earnings. As disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , the deferred gain as of December 31, 2017 totaled $10.6 million and is currently being amortized over the 15-year life of the respective leases. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Payments , which provides additional guidance on the financial statement presentation of certain activities in the statement of cash flows. The activities addressed by this guidance that may be relevant to the Company include cash payments for debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and proceeds from the settlement of corporate-owned life insurance policies, and the application of the predominance principle. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The amendments in this ASU should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company adopted this guidance effective January 1, 2018 and concluded that it did not have a material impact on its historical cash flow presentation. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740) , Intra-Entity Transfers of Assets Other Than Inventory . This guidance requires the income tax consequences of an intra-entity transfer of an asset other than inventory to be recognized when the transfer occurs, instead of when the asset is sold to an outside party. The pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments in this ASU should be applied on a modified retrospective basis, with an adjustment reflecting the cumulative effect of adoption being recorded directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance effective January 1, 2018 and concluded that it did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which eliminates the second step of the two-step quantitative approach for testing goodwill for potential impairment. An entity will therefore perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to the reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 on a prospective basis, with early adoption permitted. The Company adopted this guidance effective January 1, 2018, and will be applying the revised guidance prospectively to future goodwill impairment tests. In March 2017, the FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This guidance requires that entities present the service cost component of net periodic pension expense in the same income statement line items as other employee compensation costs. All other components of net periodic pension cost should be reported separately from the service cost component and outside a subtotal of operating income. The Company adopted this guidance effective January 1, 2018 following the retrospective method of adoption. The Condensed Consolidated Statements of Operations have been recast to present components of net periodic pension cost other than service cost within Other expense (income), net . The following table summarizes the impact of ASU 2017-07 on the Company’s previously reported Condensed Consolidated Statements of Operations: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in millions) As Reported Impact of Adoption As Adjusted As Reported Impact of Adoption As Adjusted Selling, engineering, general and administrative expenses $ 34.9 $ (0.1 ) $ 34.8 $ 66.4 $ (0.2 ) $ 66.2 Other expense (income), net (0.2 ) 0.1 (0.1 ) (0.5 ) 0.2 (0.3 ) In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities , which intends to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The amendments also make certain targeted improvements to simplify the application of the hedge accounting guidance by easing certain documentation and assessment requirements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this ASU should be applied on a modified retrospective or prospective basis, depending on the area covered by the update. The Company adopted this guidance effective January 1, 2018 and concluded that it did not have a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, that permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the “2017 Tax Act”) to retained earnings. ASU 2018-12 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this ASU may be applied retrospectively or in the period of adoption. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on the accounting for the tax impact of the 2017 Tax Act. Under SAB 118, a company that has not completed its accounting for the effects of the 2017 Tax Act by its financial reporting deadline may report provisional amounts based on reasonable estimates for items for which the accounting is incomplete. Those amounts will be subject to adjustment during a measurement period of up to one year. As discussed in Note 5 – Income Taxes, the condensed consolidated financial statements for the three and six months ended June 30, 2018 include the Company’s provisional estimates of the impact of the 2017 Tax Act, in accordance with SAB 118. The Company may adjust the provisional amounts throughout the measurement period as the Company’s calculations are refined and additional interpretive guidance becomes available. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and (iii) the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used for, but are not limited to, revenue recognition, workers’ compensation and product liability reserves, asset impairment, pension and other post-retirement benefit obligations, income tax contingency accruals and valuation allowances, and litigation-related accruals. Actual results could differ from those estimates. Significant Accounting Policies As described in Note 2 – Revenue Recognition, the Company’s revenue recognition accounting policy has been updated to reflect the adoption of Topic 606 on January 1, 2018. There have been no other changes to the Company’s significant accounting policies as disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue Recognition [Abstract] | |
Revenue | REVENUE RECOGNITION Impact of the Adoption of Topic 606 On January 1, 2018, the Company adopted Topic 606 following the modified retrospective method of adoption applied to those contracts which were not completed as of the date of adoption. In accordance with the Topic 606 transition guidance, the financial information in the comparative periods presented herein has not been restated and continues to be reported under the accounting standards in effect for those periods. The adoption of Topic 606 did not have a material impact on the Company’s financial position, results of operations or cash flows. While the impact of adoption was not material, the Company’s Condensed Consolidated Statements of Operations for both the three and six months ended June 30, 2018 include a reduction in Net sales of approximately 1% within the Environmental Solutions Group based on a revised “Principal vs. Agent” analysis resulting in a change from gross to net presentation, with a corresponding reduction in Cost of sales. The following table summarizes the impact of the adoption of Topic 606 on the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions) As Reported Balances Without Adoption of Topic 606 Effect of Change As Reported Balances Without Adoption of Topic 606 Effect of Change Net sales $ 291.0 $ 295.3 $ (4.3 ) $ 540.7 $ 548.2 $ (7.5 ) Cost of sales 211.8 216.1 (4.3 ) 399.6 407.1 (7.5 ) Gross profit $ 79.2 $ 79.2 $ — $ 141.1 $ 141.1 $ — Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied; generally this occurs at a point in time, with the transfer of control of the Company’s products or services to customers. For most of the Company’s product sales, these criteria are met at the time the product is shipped; however, occasionally control passes later or earlier than shipment due to customer contract or letter of credit terms. In circumstances where credit is extended, payment terms generally range from 30 to 120 days and customer deposits may be required. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for transferring products or providing services. Expected returns and allowances are estimated and recognized based primarily on an analysis of historical experience, with Net sales presented net of such returns and allowances. The Company enters into sales arrangements that may provide for multiple performance obligations to a customer. These arrangements may include software and non-software components that function together to deliver the products’ essential functionality. The Company identifies all performance obligations that are to be delivered separately under the sales arrangement and allocates revenue to each performance obligation based on its relative standalone selling price. The Company uses an observable price to determine the standalone selling price or a cost plus margin approach when one is not available. In general, performance obligations include hardware, integration and installation services. The allocated revenue for each performance obligation is recognized as such performance obligations are satisfied. Net sales include sales of products and billed freight related to product sales. Freight has not historically comprised a material component of Net sales . The Company has elected to account for such shipping and handling activities as a fulfillment cost and not as a separate performance obligation. Taxes collected from customers and remitted to governmental authorities are recorded on a net basis and are excluded from Net sales . The following table presents the Company’s Net sales disaggregated by geographic region, based on the location of the end customer, and by major product line: (in millions) Three Months Ended Six Months Ended Geographic Region: U.S. $ 220.7 $ 417.3 Canada 45.8 78.2 Europe/Other 24.5 45.2 Total net sales $ 291.0 $ 540.7 Major Product Line: Environmental Solutions Vehicles and equipment (a) $ 185.2 $ 340.8 Parts 32.4 62.2 Rental income (b) 11.6 19.4 Other (c) 4.1 7.5 Total $ 233.3 $ 429.9 Safety and Security Systems Public safety and security equipment $ 36.7 $ 67.3 Industrial signaling equipment 13.5 26.7 Warning systems 7.5 16.8 Total $ 57.7 $ 110.8 Total net sales $ 291.0 $ 540.7 (a) Includes net sales from the sale of new and used vehicles and equipment, including sales of rental equipment. (b) Represents income from vehicle and equipment lease arrangements with customers, recognized in accordance with Topic 840. (c) Primarily includes revenues from services such as maintenance and repair work and the sale of extended warranty contracts. Contract Balances The Company recognizes contract liabilities when cash payments, such as customer deposits, are received in advance of the Company’s satisfaction of the related performance obligations. Contract liabilities are recognized as Net sales when the related performance obligations are satisfied, which generally occurs within three to six months of the cash receipt. Contract liability balances are not materially impacted by any other factors. The Company’s contract liabilities were $10.9 million and $8.9 million , as of June 30, 2018 and December 31, 2017 , respectively. Contract assets, such as unbilled receivables, were not material as of any of the periods presented herein. Practical Expedients As the Company’s standard payment terms are less than a year, the Company has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company has also elected the practical expedient under ASC 340-40-25-4 and recognizes the incremental costs of obtaining a contract, such as sales commissions, as expense when incurred as the amortization period of the asset that otherwise would have been recognized is one year or less. Further, as permitted by ASC 606-10-50-14, the Company does not disclose the value of its remaining performance obligations for contracts with an original expected duration of one year or less. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The following table summarizes the components of Inventories : (in millions) June 30, December 31, Finished goods $ 73.7 $ 74.3 Raw materials 61.7 52.6 Work in process 12.3 10.3 Total inventories $ 147.7 $ 137.2 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following table summarizes the components of Long-term borrowings and capital lease obligations : (in millions) June 30, December 31, 2017 Amended 2016 Credit Agreement (a) $ 247.3 $ 277.0 Capital lease obligations 0.8 0.7 Total long-term borrowings and capital lease obligations, including current portion 248.1 277.7 Less: Current capital lease obligations 0.3 0.3 Total long-term borrowings and capital lease obligations $ 247.8 $ 277.4 (a) Defined as the Amended and Restated Credit Agreement, dated January 27, 2016, as amended on June 2, 2017. As more fully described within Note 11 – Fair Value Measurements, the Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value of long-term debt is based on interest rates that we believe are currently available to us for issuance of debt with similar terms and remaining maturities (Level 2 input). The following table summarizes the carrying amounts and estimated fair values of the Company’s long-term borrowings: June 30, 2018 December 31, 2017 (in millions) Notional Amount Fair Value Notional Amount Fair Value Long-term borrowings (a) $ 248.1 $ 248.1 $ 277.7 $ 277.7 (a) Long-term borrowings includes current portions of long-term debt and current portions of capital lease obligations of $0.3 million and $0.3 million as of June 30, 2018 and December 31, 2017 , respectively. Borrowings under the Amended 2016 Credit Agreement bear interest, at the Company’s option, at a base rate or a LIBOR rate, plus, in each case, an applicable margin. The applicable margin ranges from 0.00% to 1.25% for base rate borrowings and 1.00% to 2.25% for LIBOR borrowings. The Company must also pay a commitment fee to the lenders ranging between 0.15% to 0.30% per annum on the unused portion of the $400 million revolving credit facility along with other standard fees. Letter of credit fees are payable on outstanding letters of credit in an amount equal to the applicable LIBOR margin plus other customary fees. The Company is subject to certain leverage ratio and interest coverage ratio financial covenants under the Amended 2016 Credit Agreement that are to be measured at each fiscal quarter-end. The Company was in compliance with all such covenants as of June 30, 2018 . As of June 30, 2018 , there was $247.3 million of cash drawn and $12.4 million of undrawn letters of credit under the Amended 2016 Credit Agreement, with $140.3 million of net availability for borrowings. As of December 31, 2017 , there was $277.0 million cash drawn and $17.1 million of undrawn letters of credit under the Amended 2016 Credit Agreement, with $105.9 million of net availability for borrowings. As of June 30, 2018 and December 31, 2017 , there were no borrowings against the Company’s non-U.S. lines of credit which provide for borrowings of up to $0.1 million . For the six months ended June 30, 2018 , gross borrowings under the Amended 2016 Credit Agreement were $8.0 million , while there were $34.6 million of gross payments. For the six months ended June 30, 2017 , gross borrowings and gross payments were $243.0 million and $20.0 million , respectively. Interest Rate Swap On June 2, 2017 , the Company entered into an interest rate swap (the “Swap”) with a notional amount of $150.0 million , as a means of fixing the floating interest rate component on $150.0 million of its variable-rate debt. The Swap is designated as a cash flow hedge, with a termination date of June 2, 2020 . As a result of the application of hedge accounting treatment, all unrealized gains and losses related to the derivative instrument are recorded in Accumulated other comprehensive loss and are reclassified into operations in the same period in which the hedged transaction affects earnings. Hedge effectiveness is assessed quarterly. We do not use derivative instruments for trading or speculative purposes. As more fully described within Note 11 – Fair Value Measurements, the Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The fair value of the Swap is derived from a discounted cash flow analysis based on the terms of the contract and the interest rate curve (Level 2 inputs) and measured on a recurring basis in our Consolidated Balance Sheet. At June 30, 2018 , the fair value of the Swap, included in Deferred charges and other assets on the Condensed Consolidated Balance Sheets, was $2.9 million . During the three and six months ended June 30, 2018 , unrealized pre-tax gains of $0.3 million and $1.3 million , respectively, were recorded in Accumulated other comprehensive loss . During the three and six months ended June 30, 2017 , an unrealized pre-tax gain of $0.4 million was recorded in Accumulated other comprehensive loss . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company recognized income tax expense of $8.3 million and $6.1 million for the three months ended June 30, 2018 and 2017 , respectively. The increase in tax expense in the current-year quarter is largely due to higher pre-tax income levels, offset by the impact of the lower U.S. federal corporate tax rate following the enactment of the 2017 Tax Act and the recognition of a $0.5 million excess tax benefit from stock compensation activity. The effective tax rate for the three months ended June 30, 2018 was 23.6% , compared to 34.7% in the prior-year quarter, reflecting the lower U.S. federal corporate tax rate and the excess tax benefit. For the six months ended June 30, 2018 and 2017 , the Company recognized income tax expense of $12.4 million and $9.9 million , respectively. The increase in tax expense in the current year is largely due to higher pre-tax income levels, offset by the impact of the lower U.S. federal corporate tax rate following the enactment of the 2017 Tax Act and the recognition of a $0.5 million excess tax benefit from stock compensation activity. The effective tax rate for the six months ended June 30, 2018 was 23.8% , compared to 34.6% in the prior-year period, reflecting the lower U.S. federal corporate tax rate and the excess tax benefit. As discussed in Note 1 – Summary of Significant Accounting Policies, the condensed consolidated financial statements for the three and six months ended June 30, 2018 include the Company’s provisional estimates of the impact of the 2017 Tax Act, in accordance with SAB 118. The Company may adjust the provisional amounts throughout the measurement period as the Company’s calculations are refined and additional interpretive guidance becomes available. During the three and six months ended June 30, 2018 , there have been no significant adjustments to the provisional amounts recorded at December 31, 2017 . Effective January 1, 2018, the 2017 Tax Act subjects a U.S. entity to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. Given the complexity of the GILTI provisions, the Company is continuing to evaluate the effects of the GILTI provisions and has not yet determined its related accounting policy. As of June 30, 2018 , the Company has included a provisional estimate of the GILTI related to current-year operations in its estimated annual effective tax rate. The 2017 Tax Act also provides a one-time “transition tax” on untaxed post-1986 accumulated earnings and profits (“E&P”) of a company’s controlled foreign corporations (“CFC”) determined as of November 2, 2017 or December 31, 2017 (whichever date on which there is more deferred E&P). Cash and cash equivalents are taxed at an effective rate of 15.5% and earnings in excess of the cash position are taxed at an effective rate of 8% . The 2017 Tax Act permits the netting of positive earnings of one CFC against deficits of others. At both November 2, 2017 and December 31, 2017, the accumulated undistributed earnings of the Company’s foreign subsidiaries aggregated to an overall E&P deficit. Therefore, the Company estimates that no transition tax will be payable under the provisions of the 2017 Tax Act. As with other tax calculations surrounding the 2017 Tax Act, the Company’s estimate of its transition tax liability as of June 30, 2018 is provisional due to complexities inherent in the computations that it expects to be addressed in whole, or in part, by regulations issued during 2018. |
Pensions
Pensions | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pensions | PENSIONS The following table summarizes the components of net postretirement pension expense (benefit): U.S. Benefit Plan Non-U.S. Benefit Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ — $ — $ — $ — $ — $ 0.1 $ 0.1 $ 0.1 Interest cost 1.6 1.9 3.2 3.8 0.4 0.4 0.7 0.7 Amortization of actuarial loss 0.7 0.6 1.5 1.2 0.1 0.1 0.3 0.3 Expected return on plan assets (2.2 ) (2.4 ) (4.4 ) (4.8 ) (0.6 ) (0.5 ) (1.2 ) (1.0 ) Net postretirement pension expense (benefit) $ 0.1 $ 0.1 $ 0.3 $ 0.2 $ (0.1 ) $ 0.1 $ (0.1 ) $ 0.1 In the six months ended June 30, 2018 and 2017 , the Company contributed $2.7 million and $2.7 million to its U.S. defined benefit plan, respectively, and $0.7 million and $0.4 million to its non-U.S. defined benefit plan, respectively. The Company expects to contribute up to $6.9 million to the U.S. benefit plan and up to $1.4 million to the non-U.S. benefit plan during 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Financial Commitments The Company provides indemnifications and other guarantees in the ordinary course of business, the terms of which range in duration and often are not explicitly defined. Specifically, the Company is occasionally required to provide letters of credit and bid and performance bonds to various customers, principally to act as security for retention levels related to casualty insurance policies and to guarantee the performance of subsidiaries that engage in export and domestic transactions. At June 30, 2018 , the Company had outstanding performance and financial standby letters of credit, as well as outstanding bid and performance bonds, aggregating to $17.2 million . If any such letters of credit or bonds are called, the Company would be obligated to reimburse the issuer of the letter of credit or bond. The Company believes the likelihood of any currently outstanding letter of credit or bond being called is remote. The Company has transactions involving the sale of equipment to certain of its customers which include (i) guarantees to repurchase the equipment for a fixed price at a future date and (ii) guarantees to repurchase the equipment from the third-party lender in the event of default by the customer. As of June 30, 2018 , the single year and maximum potential cash payments the Company could be required to make to repurchase equipment under these agreements were $3.8 million and $4.8 million , respectively. The Company’s risk under these repurchase arrangements would be partially mitigated by the value of the products repurchased as part of the transaction. Further, pursuant to the terms of the June 3, 2016 acquisition of substantially all of the assets and operations of Joe Johnson Equipment, Inc. and Joe Johnson Equipment (USA), Inc. (collectively, “JJE”), the former owners of JJE have agreed to reimburse the Company for certain losses incurred resulting from the requirement to repurchase equipment that was sold prior to the acquisition date. Any such reimbursement would be withheld from the C $8.0 million deferred payment to be made to the former owners of JJE on the third anniversary of the acquisition date. Historical cash requirements and losses associated with these obligations have not been significant, but could increase if customer defaults exceed current expectations. Product Warranties The Company issues product performance warranties to customers with the sale of its products. The specific terms and conditions of these warranties vary depending upon the product sold and country in which the Company does business, with warranty periods generally ranging from one to five years. The Company estimates the costs that may be incurred under its basic limited warranty and records a liability in the amount of such costs at the time the sale of the related product is recognized. Factors that affect the Company’s warranty liability include (i) the number of units under warranty, (ii) historical and anticipated rates of warranty claims and (iii) costs per claim. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary. During the year ended December 31, 2017 , the Company recognized an estimated liability within the Environmental Solutions Group in connection with a specific warranty matter. Although there were no significant changes to the liability during the three and six months ended June 30, 2018 , it is reasonably possible that the Company’s estimate may change in the near term as more information becomes available; however, the ultimate resolution of this matter is not expected to have a material adverse effect on the Company’s results of operations, financial position or cash flow. The following table summarizes the changes in the Company’s warranty liabilities during the six months ended June 30, 2018 and 2017 : (in millions) 2018 2017 Balance at January 1 $ 8.4 $ 6.4 Provisions to expense 3.5 2.3 Acquisitions — 1.5 Payments (3.2 ) (2.8 ) Balance at June 30 $ 8.7 $ 7.4 Liabilities of Discontinued Operations The Company retains certain liabilities for operations discontinued in prior periods, primarily for environmental remediation and product liability. Included in liabilities of discontinued operations on the Condensed Consolidated Balance Sheets as of June 30, 2018 and December 31, 2017 , were reserves of $0.4 million and $0.5 million , respectively, related to environmental remediation at the Pearland, Texas facility previously used by the Company’s discontinued Pauluhn business, and $1.4 million related to estimated product liability obligations of the discontinued North American refuse truck body business. Legal Proceedings The Company is subject to various claims, including pending and possible legal actions for product liability and other damages, and other matters arising in the ordinary course of the Company’s business. On a quarterly basis, the Company reviews uninsured material legal claims against the Company and accrues for the costs of such claims as appropriate in the exercise of management’s best judgment and experience. However, due to a lack of factual information available to the Company about a claim, or the procedural stage of a claim, it may not be possible for the Company to reasonably assess either the probability of a favorable or unfavorable outcome of the claim or to reasonably estimate the amount of loss should there be an unfavorable outcome. Therefore, for many claims, the Company cannot reasonably estimate a range of loss. The Company believes, based on current knowledge and after consultation with counsel, that the outcome of such claims and actions will not have a material adverse effect on the Company’s results of operations or financial condition. However, in the event of unexpected future developments, it is possible that the ultimate resolution of such matters, if unfavorable, could have a material adverse effect on the Company’s results of operations, financial condition or cash flow. Hearing Loss Litigation The Company has been sued for monetary damages by firefighters who claim that exposure to the Company’s sirens has impaired their hearing and that the sirens are therefore defective. There were 33 cases filed during the period of 1999 through 2004, involving a total of 2,443 plaintiffs, in the Circuit Court of Cook County, Illinois. These cases involved more than 1,800 firefighter plaintiffs from locations outside of Chicago. In 2009, six additional cases were filed in Cook County, involving 299 Pennsylvania firefighter plaintiffs. During 2013, another case was filed in Cook County involving 74 Pennsylvania firefighter plaintiffs. The trial of the first 27 of these plaintiffs’ claims occurred in 2008, whereby a Cook County jury returned a unanimous verdict in favor of the Company. An additional 40 Chicago firefighter plaintiffs were selected for trial in 2009. Plaintiffs’ counsel later moved to reduce the number of plaintiffs from 40 to nine . The trial for these nine plaintiffs concluded with a verdict against the Company and for the plaintiffs in varying amounts totaling $0.4 million . The Company appealed this verdict. On September 13, 2012, the Illinois Appellate Court rejected this appeal. The Company thereafter filed a petition for rehearing with the Illinois Appellate Court, which was denied on February 7, 2013. The Company sought further review by filing a petition for leave to appeal with the Illinois Supreme Court on March 14, 2013. On May 29, 2013, the Illinois Supreme Court issued a summary order declining to accept review of this case. On July 1, 2013, the Company satisfied the judgments entered for these plaintiffs, which has resulted in final dismissal of these cases. A third consolidated trial involving eight Chicago firefighter plaintiffs occurred during November 2011. The jury returned a unanimous verdict in favor of the Company at the conclusion of this trial. Following this trial, on March 12, 2012 the trial court entered an order certifying a class of the remaining Chicago Fire Department firefighter plaintiffs for trial on the sole issue of whether the Company’s sirens were defective and unreasonably dangerous. The Company petitioned the Illinois Appellate Court for interlocutory appeal of this ruling. On May 17, 2012, the Illinois Appellate Court accepted the Company’s petition. On June 8, 2012, plaintiffs moved to dismiss the appeal, agreeing with the Company that the trial court had erred in certifying a class action trial in this matter. Pursuant to plaintiffs’ motion, the Illinois Appellate Court reversed the trial court’s certification order. Thereafter, the trial court scheduled a fourth consolidated trial involving three firefighter plaintiffs, which began in December 2012. Prior to the start of this trial, the claims of two of the three firefighter plaintiffs were dismissed. On December 17, 2012, the jury entered a complete defense verdict for the Company. Following this defense verdict, plaintiffs again moved to certify a class of Chicago Fire Department plaintiffs for trial on the sole issue of whether the Company’s sirens were defective and unreasonably dangerous. Over the Company’s objection, the trial court granted plaintiffs’ motion for class certification on March 11, 2013 and scheduled a class action trial to begin on June 10, 2013. The Company filed a petition for review with the Illinois Appellate Court on March 29, 2013 seeking reversal of the class certification order. On June 25, 2014, a unanimous three-judge panel of the First District Illinois Appellate Court issued its opinion reversing the class certification order of the trial court. Specifically, the Appellate Court determined that the trial court’s ruling failed to satisfy the class-action requirements that the common issues of the firefighters’ claims predominate over the individual issues and that there is an adequate representative for the class. During a status hearing on October 8, 2014, plaintiffs represented to the Court that they would again seek to certify a class of firefighters on the issue of whether the Company’s sirens were defective and unreasonably dangerous. On January 12, 2015, plaintiffs filed motions to amend their complaints to add class action allegations with respect to Chicago firefighter plaintiffs as well as the approximately 1,800 firefighter plaintiffs from locations outside of Chicago. On March 11, 2015, the trial court granted plaintiff’s motions to amend their complaints. On April 24, 2015, the cases were transferred to Cook County chancery court, which will decide all class certification issues. On March 23, 2018, plaintiffs filed a motion to certify as a class all firefighters from the Chicago Fire Department who have filed lawsuits in this matter. The Company has served discovery upon plaintiffs related to this motion and intends to continue its objections to any attempt at certification. A further status hearing on class certification issues has been scheduled for September 18, 2018. The Company has also filed motions to dismiss cases involving firefighters who worked for fire departments located outside of the state of Illinois based on improper venue. On February 24, 2017, the Circuit Court of Cook County entered orders dismissing the cases of 1,770 such firefighter plaintiffs from the jurisdiction of the state of Illinois. Pursuant to these orders, these plaintiffs had six months thereafter to refile their cases in jurisdictions where these firefighters are located. Prior to this six-month deadline, some of the attorneys representing these plaintiffs contacted the Company regarding possible settlement of these cases. During the year ended December 31, 2017, the Company entered into a global settlement agreement with two attorneys who represented approximately 1,090 of these plaintiffs. Under the terms of the settlement agreement, the Company offered $700 per plaintiff to settle these cases and 717 plaintiffs accepted this offer as a final settlement. The attorneys representing these plaintiffs agreed to withdraw from representing plaintiffs who did not respond to the settlement offer. It is the Company’s position that the non-settling plaintiffs who failed to timely refile their cases following the February 2017 dismissal by the Circuit Court of Cook County are now barred from doing so by the statute of limitations. The Company also has filed a venue motion seeking to transfer to DuPage County cases involving 10 plaintiffs who reside and work in Illinois but outside of Cook County. The Court granted this motion on June 28, 2017. The Company has also been sued on this issue outside of the Cook County, Illinois venue. In 2007 and through 2009, a total of 71 lawsuits involving 71 plaintiffs were filed in the Court of Common Pleas, Philadelphia County, Pennsylvania. Three of these cases were dismissed pursuant to pretrial motions filed by the Company. Another case was voluntarily dismissed. Prior to trial in four cases, the Company paid nominal sums to obtain dismissals. Three trials occurred in Philadelphia involving these cases filed in 2007 through 2009. The first trial involving one of these plaintiffs occurred in 2010, when the jury returned a verdict for the plaintiff. In particular, the jury found that the Company’s siren was not defectively designed, but that the Company negligently constructed the siren. The jury awarded damages in the amount of $0.1 million , which was subsequently reduced to $0.08 million . The Company appealed this verdict. Another trial, involving nine Philadelphia firefighter plaintiffs, also occurred in 2010 when the jury returned a defense verdict for the Company as to all claims and all plaintiffs involved in that trial. The third trial, also involving nine Philadelphia firefighter plaintiffs, was completed during 2010 when the jury returned a defense verdict for the Company as to all claims and all plaintiffs involved in that trial. Following defense verdicts in the last two Philadelphia trials, the Company negotiated settlements with respect to all remaining filed cases in Philadelphia at that time, as well as other firefighter claimants represented by the attorney who filed the Philadelphia cases. On January 4, 2011, the Company entered into a Global Settlement Agreement (the “Settlement Agreement”) with the law firm of the attorney representing the Philadelphia claimants, on behalf of 1,125 claimants the firm represented (the “Claimants”) and who had asserted product claims against the Company (the “Claims”). Three hundred eight of the Claimants had lawsuits pending against the Company in Cook County, Illinois. The Settlement Agreement provided that the Company pay a total amount of $3.8 million (the “Settlement Payment”) to settle the Claims (including the costs, fees and other expenses of the law firm in connection with its representation of the Claimants), subject to certain terms, conditions and procedures set forth in the Settlement Agreement. In order for the Company to be required to make the Settlement Payment: (i) each Claimant who agreed to settle his or her claims had to sign a release acceptable to the Company (a “Release”), (ii) each Claimant who agreed to the settlement and who was a plaintiff in a lawsuit, had to dismiss his or her lawsuit with prejudice, (iii) by April 29, 2011, at least 93% of the Claimants identified in the Settlement Agreement must have agreed to settle their claims and provide a signed Release to the Company and (iv) the law firm had to withdraw from representing any Claimants who did not agree to the settlement, including those who filed lawsuits. If the conditions to the settlement were met, but less than 100% of the Claimants agreed to settle their Claims and sign a Release, the Settlement Payment would be reduced by the percentage of Claimants who did not agree to the settlement. On April 22, 2011, the Company confirmed that the terms and conditions of the Settlement Agreement had been met and made a payment of $3.6 million to conclude the settlement. The amount was based upon the Company’s receipt of 1,069 signed releases provided by Claimants, which was 95.02% of all Claimants identified in the Settlement Agreement. The Company generally denies the allegations made in the claims and lawsuits by the Claimants and denies that its products caused any injuries to the Claimants. Nonetheless, the Company entered into the Settlement Agreement for the purpose of minimizing its expenses, including legal fees, and avoiding the inconvenience, uncertainty and distraction of the claims and lawsuits. During April through October 2012, 20 new cases were filed in the Court of Common Pleas, Philadelphia County, Pennsylvania. These cases were filed on behalf of 20 Philadelphia firefighters and involve various defendants in addition to the Company. Five of these cases were subsequently dismissed. The first trial involving these 2012 Philadelphia cases occurred during December 2014 and involved three firefighter plaintiffs. The jury returned a verdict in favor of the Company. Following this trial, all of the parties agreed to settle cases involving seven firefighter plaintiffs set for trial during January 2015 for nominal amounts per plaintiff. In January 2015, plaintiffs’ attorneys filed two new complaints in the Court of Common Pleas, Philadelphia, Pennsylvania on behalf of approximately 70 additional firefighter plaintiffs. The vast majority of the firefighters identified in these complaints are located outside of Pennsylvania. One of the complaints in these cases, which involves 11 firefighter plaintiffs from the District of Columbia, was removed to federal court in the Eastern District of Pennsylvania. Plaintiffs voluntarily dismissed all claims in this case on May 31, 2016. The Company thereafter moved to recover various fees and costs in this case, asserting that plaintiffs’ counsel failed to properly investigate these claims prior to filing suit. The Court granted this motion on April 25, 2017, awarding $0.1 million to the Company. After plaintiffs appealed this Order, the United States Court of Appeals for the Third Circuit affirmed the lower court decision awarding fees and costs to the Company. With respect to claims of other out-of-state firefighters involved in these two cases, the Company moved to dismiss these claims as improperly filed in Pennsylvania. The Court granted this motion and dismissed these claims on November 5, 2015. During August through December 2015, another nine new cases were filed in the Court of Common Pleas, Philadelphia County, Pennsylvania. These cases involve a total of 193 firefighters, most of whom are located outside of Pennsylvania. The Company again moved to dismiss all claims filed by out-of-state firefighters in these cases as improperly filed in Pennsylvania. On May 24, 2016, the Court granted this motion and dismissed these claims. Plaintiffs have filed a notice of appeal regarding this decision. On May 13, 2016, four new cases were filed in Philadelphia state court, involving a total of 55 Philadelphia firefighters who live in Pennsylvania. During August 2016, the Company settled a case involving four Philadelphia firefighters that had been set for trial in Philadelphia state court during September 2016. During 2017, plaintiffs filed additional cases in the Court of Common Pleas, Philadelphia County, involving over 100 Philadelphia firefighter plaintiffs. During January 2017, plaintiffs filed a motion to consolidate and bifurcate, similar to a motion filed in the Pittsburgh hearing loss cases, as described below. The Company has filed an opposition to this motion. These cases were then transferred to the mass tort program in Philadelphia for pretrial purposes. Plaintiffs’ counsel thereafter dismissed several plaintiffs. During November 2017, a trial involving one Philadelphia firefighter occurred. The jury returned a verdict in favor of the Company in this trial. As of June 30, 2018 , a total of 75 firefighters are involved in cases pending in the Philadelphia mass tort program. During April through July 2013, additional cases were filed in Allegheny County, Pennsylvania on behalf of 247 plaintiff firefighters from Pittsburgh and against various defendants, including the Company. During May 2016, two additional cases were filed against the Company in Allegheny County involving 19 Pittsburgh firefighters. After the Company filed pretrial motions, the Court dismissed claims of 55 Pittsburgh firefighter plaintiffs. The Court scheduled trials for May, September and November 2016, for eight firefighters per trial. Prior to the first scheduled trial in Pittsburgh, the Court granted the Company’s motion for summary judgment and dismissed all claims asserted by plaintiff firefighters involved in this trial. Plaintiffs have appealed this dismissal. The next trial for six Pittsburgh firefighters started on November 7, 2016. Shortly after this trial began, plaintiffs’ counsel moved for a mistrial because a key witness suddenly became unavailable. The Court granted this motion and rescheduled this trial for March 6, 2017. During January 2017, plaintiffs also moved to consolidate and bifurcate trials involving Pittsburgh firefighters. In particular, plaintiffs sought one trial involving liability issues which will apply to all Pittsburgh firefighters who filed suit against the Company. The Company filed an opposition to this motion. On April 18, 2017, the trial court granted plaintiffs’ motion to bifurcate the next Pittsburgh trial. Pursuant to a motion for clarification filed by the Company, the Court ruled that the bifurcation order would only apply to six plaintiffs who were part of the next trial group in Pittsburgh. The Company thereafter sought an interlocutory appeal of the Court’s bifurcation order. The appellate court declined to accept the appeal at that time. A bifurcated trial began on September 27, 2017 in Allegheny County, Pennsylvania. Prior to and during trial, two plaintiffs were dismissed, resulting in four plaintiffs remaining for trial. After approximately two weeks of trial, the jury found that the Company’s siren product was not defective or unreasonably dangerous and rendered a verdict in favor of the Company. A second trial involving Pittsburgh firefighters began during January 2018. At the outset of this trial, plaintiffs’ attorneys requested that the Company consider settlement of various cases. This trial was continued to allow the parties to further discuss possible settlement. During March 2018, the parties agreed in principle on a framework to resolve hearing loss claims and cases in all jurisdictions involved in the hearing loss litigation except in Cook County, Lackawanna County, and excluding one case involving one firefighter in New York City. The firefighters excluded from this settlement framework are represented by different attorneys. Pursuant to this settlement framework, the Company would pay $700 to each firefighter who has filed a lawsuit and is eligible to be part of the settlement. The Company would pay $300 to each firefighter who has not yet filed a case and is eligible to be part of the settlement. To be eligible for settlement, among other things, firefighters must provide proof that they have high frequency noise-induced hearing loss. There are approximately 3,700 firefighters whose claims may be considered as part of this settlement, including approximately 1,180 firefighters who have ongoing filed lawsuits. The parties are in the process of determining how many of these firefighters will be eligible to participate in the settlement. In order to minimize the parties’ respective legal costs and expenses during this settlement process, on July 5, 2018, the parties entered into a tolling agreement whereby counsel for the settling firefighters agreed to dismiss the pending lawsuits in all jurisdictions except for the Alleghany County (Pittsburgh), Pennsylvania cases, and the Company agreed to a tolling of any statute of limitations applicable to the dismissed cases through October 31, 2018. The settlement framework will require plaintiffs’ attorneys to withdraw from representing firefighters who elect not to participate in this settlement. As of June 30, 2018 , the Company has recognized an estimated liability for the potential settlement amount. While it is reasonably possible that the ultimate resolution of this matter may result in a loss in excess of the amount accrued, the incremental loss is not expected to be material. During March 2014, an action also was brought in the Court of Common Pleas of Erie County, Pennsylvania on behalf of 61 firefighters. This case likewise involves various defendants in addition to the Company. After the Company filed pretrial motions, 33 Erie County firefighter plaintiffs voluntarily dismissed their claims. During August 2017, five cases involving 70 firefighter plaintiffs were filed in Lackawanna County, Pennsylvania. These cases involve firefighter plaintiffs who originally filed in Cook County and were dismissed pursuant to the Company’s forum nonconveniens motion. As of June 30, 2018 , a total of 263 firefighters are involved in cases filed in Allegheny and Lackawanna counties in Pennsylvania. On September 17, 2014, 20 lawsuits, involving a total of 193 Buffalo Fire Department firefighters, were filed in the Supreme Court of the State of New York, Erie County. All of the cases filed in Erie County, New York have been removed to federal court in the Western District of New York. Plaintiffs have filed a motion to consolidate and bifurcate these cases, similar to the motion filed in the Pittsburgh hearing loss cases, as described above. The Company has filed an opposition to the motion. During February 2015, a lawsuit involving one New York City firefighter plaintiff was filed in the Supreme Court of the State of New York, New York County. The plaintiff named the Company as well as several other parties as defendants. That case subsequently was transferred to federal court in the Northern District of New York and thereafter dismissed. During April 2015 through January 2016, 29 new cases involving a total of 235 firefighters were filed in various counties in the New York City area. During December 2016 through October 2017 additional cases were filed in these jurisdictions. On February 5, 2018, the Company was served with a complaint in an additional case filed in Kings County, New York. This case involves one plaintiff. As of June 30, 2018 , a total of 536 firefighters are involved in cases filed in the state of New York. During November 2015, the Company was served with a complaint filed in Union County, New Jersey state court, involving 34 New Jersey firefighters. This case has been transferred to federal court in the District of New Jersey. During the period from January through May 2016, eight additional cases were filed in various New Jersey state courts. Most of the firefighters in these cases reside in New Jersey and work or worked at New Jersey fire departments. During December 2016, a case involving one New Jersey firefighter was filed in the United States District Court of New Jersey. As of June 30, 2018 , a total of 61 firefighters are currently involved in cases filed in New Jersey. On May 2, 2017, plaintiffs filed a motion to consolidate and bifurcate in the pending federal court case in New Jersey. This motion is similar to bifurcation motions filed by plaintiffs in Pittsburgh, Buffalo and Philadelphia. The Court has denied this motion as premature. Pursuant to a petition filed by both parties, all New Jersey state court cases have been consolidated for pretrial purposes. During May through October 2016, nine cases were filed in Suffolk County, Massachusetts state court, naming the Company as a defendant. These cases involve 194 firefighters who lived and worked in the Boston area. During August 2017, plaintiffs filed additional cases in Suffolk County court. The Company has moved to transfer various cases filed in Suffolk county to other counties in Massachusetts where plaintiffs reside and work. As of June 30, 2018 , a total of 218 firefighters are involved in cases filed in Massachusetts. During August and September 2017, plaintiffs’ attorneys filed additional hearing loss cases in Florida. The Company is the only named defendant. These cases have been filed in several different counties in Florida, including Tampa, Miami and Orlando municipalities. Plaintiffs have agreed to stipulate that they will not seek more than $75,000 in damages in any individual plaintiff case. As of June 30, 2018 , a total of 166 firefighters are involved in cases filed in Florida. From 2007 through 2009, firefighters also brought hearing loss claims against the Company in New Jersey, Missouri, Maryland and Kings County, New York. All of those cases, however, were dismissed prior to trial, including four cases in the Supreme Court of Kings County, New York that were dismissed upon the Company’s motion in 2008. On appeal, the New York appellate court affirmed the trial court’s dismissal of these cases. Plaintiffs’ attorneys have threatened to file additional lawsuits. The Company intends to vigorously defend all of these lawsuits, if filed. The Company’s ongoing negotiations with its insurer, CNA, over insurance coverage on these claims have resulted in reimbursements of a portion of the Company’s defense costs. These reimbursements are recorded as a reduction of corporate operating expenses. For the six months ended June 30, 2018 and 2017 , the Company recorded $0.2 million and $0.3 million of reimbursements from CNA related to legal costs, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company computes earnings per share (“EPS”) in accordance with ASC 260, Earnings per Share , which requires that non-vested restricted stock containing non-forfeitable dividend rights should be treated as participating securities pursuant to the two-class method. Under the two-class method, net income is reduced by the amount of dividends declared in the period for common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. The amounts of distributed and undistributed earnings allocated to participating securities for the three and six months ended June 30, 2018 and 2017 were insignificant and did not materially impact the calculation of basic or diluted EPS. Basic EPS is computed by dividing income or loss available to common stockholders by the weighted average number of shares of common stock and non-vested restricted stock awards outstanding for the period. Diluted EPS is computed using the weighted average number of shares of common stock and non-vested restricted stock awards outstanding for the year plus the effect of dilutive potential common shares outstanding during the period. The dilutive effect of common stock equivalents is determined using the more dilutive of the two-class method or alternative methods. The Company uses the treasury stock method to determine the potentially dilutive impact of our employee stock options and restricted stock units, and the contingently issuable method for our performance-based restricted stock unit awards. For the three and six months ended June 30, 2018 , options to purchase 0.3 million of the Company’s common stock had an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation of diluted EPS. For the three and six months ended June 30, 2017 , options to purchase 0.7 million and 1.2 million shares, respectively, of the Company’s common stock had an anti-dilutive effect on EPS, and accordingly, are excluded from the calculation of diluted EPS. The following table reconciles Net income to basic and diluted EPS: Three Months Ended Six Months Ended (in millions, except per share data) 2018 2017 2018 2017 Income from continuing operations $ 26.9 $ 11.5 $ 39.8 $ 18.7 Loss from discontinued operations and disposal, net of tax — (0.1 ) — — Net income $ 26.9 $ 11.4 $ 39.8 $ 18.7 Weighted average shares outstanding – Basic 59.9 59.7 59.9 59.7 Dilutive effect of common stock equivalents 1.1 0.6 1.0 0.6 Weighted average shares outstanding – Diluted 61.0 60.3 60.9 60.3 Basic earnings per share: Earnings from continuing operations $ 0.45 $ 0.19 $ 0.67 $ 0.31 Loss from discontinued operations and disposal, net of tax — — — — Net earnings per share $ 0.45 $ 0.19 $ 0.67 $ 0.31 Diluted earnings per share: Earnings from continuing operations $ 0.44 $ 0.19 $ 0.65 $ 0.31 Loss from discontinued operations and disposal, net of tax — — — — Net earnings per share $ 0.44 $ 0.19 $ 0.65 $ 0.31 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY Dividends On February 19, 2018 , the Company’s Board of Directors (the “Board”) declared a quarterly cash dividend of $0.07 per common share. The dividend totaled $4.2 million and was distributed on March 19, 2018 to holders of record at the close of business on March 5, 2018 . On May 1, 2018 , the Board declared a quarterly cash dividend of $0.08 per common share payable. The dividend totaled $4.8 million and was distributed on May 29, 2018 to holders of record at the close of business on May 15, 2018 . During the three and six months ended June 30, 2017 , dividends of $4.2 million and $8.4 million were paid to stockholders. On July 31, 2018 , the Board declared a quarterly cash dividend of $0.08 per common share payable on August 28, 2018 to holders of record at the close of business on August 14, 2018 . Accumulated Other Comprehensive Loss The following tables summarize the changes in each component of Accumulated other comprehensive loss , net of tax: (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at April 1, 2018 $ (75.3 ) $ (0.5 ) $ 1.8 $ (74.0 ) Other comprehensive income (loss) before reclassifications 1.1 (5.2 ) 0.3 (3.8 ) Amounts reclassified from accumulated other comprehensive loss 0.6 — (0.1 ) 0.5 Net current-period other comprehensive income (loss) 1.7 (5.2 ) 0.2 (3.3 ) Balance at June 30, 2018 $ (73.6 ) $ (5.7 ) $ 2.0 $ (77.3 ) (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at April 1, 2017 $ (78.8 ) $ (11.8 ) $ — $ (90.6 ) Other comprehensive (loss) income before reclassifications (0.6 ) 5.0 0.2 4.6 Amounts reclassified from accumulated other comprehensive loss 0.5 — — 0.5 Net current-period other comprehensive (loss) income (0.1 ) 5.0 0.2 5.1 Balance at June 30, 2017 $ (78.9 ) $ (6.8 ) $ 0.2 $ (85.5 ) (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at January 1, 2018 $ (75.4 ) $ (2.5 ) $ 1.0 $ (76.9 ) Other comprehensive income (loss) before reclassifications 0.4 (3.2 ) 1.1 (1.7 ) Amounts reclassified from accumulated other comprehensive loss 1.4 — (0.1 ) 1.3 Net current-period other comprehensive income (loss) 1.8 (3.2 ) 1.0 (0.4 ) Balance at June 30, 2018 $ (73.6 ) $ (5.7 ) $ 2.0 $ (77.3 ) (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at January 1, 2017 $ (79.0 ) $ (13.0 ) $ — $ (92.0 ) Other comprehensive (loss) income before reclassifications (0.9 ) 6.2 0.2 5.5 Amounts reclassified from accumulated other comprehensive loss 1.0 — — 1.0 Net current-period other comprehensive income 0.1 6.2 0.2 6.5 Balance at June 30, 2017 $ (78.9 ) $ (6.8 ) $ 0.2 $ (85.5 ) (a) Amounts in parentheses indicate losses. The following table summarizes the amounts reclassified from Accumulated other comprehensive loss , net of tax, in the three months ended June 30, 2018 and 2017 and the affected line item in the Condensed Consolidated Statements of Operations: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in Condensed Consolidated Statements of Operations (a) 2018 2017 (in millions) (b) Amortization of actuarial losses of defined benefit pension plans $ (0.8 ) $ (0.7 ) Other expense (income), net Interest rate swap 0.2 — Interest expense Total before tax (0.6 ) (0.7 ) Income tax benefit 0.1 0.2 Income tax expense Total reclassifications for the period, net of tax $ (0.5 ) $ (0.5 ) (a) Continuing operations only. (b) Amounts in parentheses indicate losses. The following table summarizes the amounts reclassified from Accumulated other comprehensive loss , net of tax, in the six months ended June 30, 2018 and 2017 and the affected line item in the Condensed Consolidated Statements of Operations: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in Condensed Consolidated Statements of Operations (a) 2018 2017 (in millions) (b) Amortization of actuarial losses of defined benefit pension plans $ (1.8 ) $ (1.5 ) Other expense (income), net Interest rate swap 0.2 — Interest expense Total before tax (1.6 ) (1.5 ) Income tax benefit 0.3 0.5 Income tax expense Total reclassifications for the period, net of tax $ (1.3 ) $ (1.0 ) (a) Continuing operations only. (b) Amounts in parentheses indicate losses. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company has two operating segments, and the Company’s reportable segments are consistent with those operating segments. Business units are organized under each segment because they share certain characteristics, such as technology, marketing, distribution and product application, which create long-term synergies. On June 2, 2017, the Company completed the acquisition of all of the shares of capital stock of GenNx/TBEI Intermediate Co. (collectively with its subsidiaries, “TBEI”). The Company expects that the acquisition will enable it to strengthen the Environmental Solutions Group’s market position as a specialty vehicle manufacturer in maintenance and infrastructure end-markets, leveraging its expertise in building chassis-based vehicles. The Company has presented the financial statements of TBEI within the Environmental Solutions Group since the closing date and is in the process of determining the impact, if any, that the TBEI acquisition may have on its reportable segments. The principal activities of the Company’s operating segments are as follows: Environmental Solutions — Our Environmental Solutions Group is a leading manufacturer and supplier of a full range of street sweeper vehicles, sewer cleaner and vacuum loader trucks, hydro-excavation trucks, high-performance waterblasting equipment, dump truck bodies and trailers. The Group manufactures vehicles and equipment in the U.S. and Canada that are sold under the Elgin ® , Vactor ® , Guzzler ® , Westech TM , Jetstream ® , Ox Bodies ® , Crysteel ® , J-Craft ® , Duraclass ® , Rugby ® and Travis ® brand names. Product offerings also include certain products manufactured by other companies, such as refuse and recycling collection vehicles, camera systems, ice resurfacing equipment and snow-removal equipment. Products are sold to both municipal and industrial customers either through a dealer network or direct sales to service customers generally depending on the type and geographic location of the customer. In addition to vehicle and equipment sales, the Group also engages in the sale of parts, service and repair, equipment rentals and training as part of a complete offering to its current and potential customers through its service centers located across North America. Safety and Security Systems — Our Safety and Security Systems Group is a leading manufacturer and supplier of comprehensive systems and products that law enforcement, fire rescue, emergency medical services, campuses, military facilities and industrial sites use to protect people and property. Offerings include systems for campus and community alerting, emergency vehicles, first responder interoperable communications and industrial communications, as well as command and municipal networked security. Specific products include vehicle lightbars and sirens, public warning sirens, general alarm systems, public address systems and public safety software. Products are sold under the Federal Signal TM , Federal Signal VAMA ® and Victor ® brand names. The Group operates manufacturing facilities in the U.S., Europe and South Africa. Corporate contains those items that are not included in our operating segments. Net sales by operating segment reflect sales of products and services to external customers, as reported in the Company’s Consolidated Statements of Operations. Intersegment sales are insignificant. The Company evaluates performance based on operating income of the respective segment. Operating income includes all revenues, costs and expenses directly related to the segment involved. In determining operating segment income, neither corporate nor interest expenses are included. As described in Note 2 – Revenue Recognition, the Company’s revenue recognition accounting policy has been updated to reflect the adoption of Topic 606 on January 1, 2018. The financial information in the comparative periods presented herein has not been restated and continues to be reported under the accounting standards in effect for those periods. Refer to Note 2 – Revenue Recognition for further discussion regarding the impact of the adoption of Topic 606 on Net sales reported by the Environmental Solutions Group. The accounting policies of each operating segment are otherwise the same as those described in Note 1 – Summary of Significant Accounting Policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . The results for the interim periods are not necessarily indicative of results for a full year. The following tables summarize the Company’s continuing operations by segment, including Net sales , Operating income (loss), and Total assets : Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 Net sales: Environmental Solutions $ 233.3 $ 174.3 $ 429.9 $ 302.1 Safety and Security Systems 57.7 50.1 110.8 100.1 Total net sales $ 291.0 $ 224.4 $ 540.7 $ 402.2 Operating income (loss): Environmental Solutions $ 37.2 $ 21.0 $ 57.8 $ 31.3 Safety and Security Systems 8.2 5.6 14.3 12.0 Corporate and eliminations (7.3 ) (7.8 ) (14.4 ) (13.1 ) Total operating income 38.1 18.8 57.7 30.2 Interest expense 2.5 1.3 5.0 1.9 Other expense (income), net 0.4 (0.1 ) 0.5 (0.3 ) Income before income taxes $ 35.2 $ 17.6 $ 52.2 $ 28.6 (in millions) As of As of December 31, 2017 Total assets: Environmental Solutions $ 776.8 $ 746.4 Safety and Security Systems 210.4 211.8 Corporate and eliminations 28.5 33.6 Total assets of continuing operations 1,015.7 991.8 Total assets of discontinued operations 0.5 0.5 Total assets $ 1,016.2 $ 992.3 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. The three levels of inputs are classified as follows: • Level 1 — quoted prices in active markets for identical assets or liabilities; • Level 2 — observable inputs, other than quoted prices included in Level 1, such as quoted prices for markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and • Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. In determining fair value, the Company uses various valuation approaches within the fair value measurement framework. The valuation methodologies used for the Company’s assets and liabilities measured at fair value and their classification in the valuation hierarchy are summarized below: Cash Equivalents Cash equivalents primarily consist of time-based deposits and interest-bearing instruments with maturities of three months or less. The Company classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. Interest Rate Swap As described in Note 4 – Debt, the Company entered into an interest rate swap as a means of fixing the floating interest rate component on a portion of its floating-rate debt. The Company classified the interest rate swap as Level 2 due to the use of a discounted cash flow model based on the terms of the contract and the interest rate curve (Level 2 inputs) to calculate the fair value of the swap. Contingent Consideration The Company has a contingent obligation to transfer cash to the former owners of JJE if specified financial results are met over future reporting periods (i.e., an earn-out). Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration transferred. Subsequent changes in fair value are recorded as a component of Acquisition and integration-related expenses on the Condensed Consolidated Statements of Operations. The Company uses an income approach to value the contingent consideration obligation based on future financial performance, which is determined based on the present value of expected future cash flows. Due to the lack of relevant observable market data over fair value inputs, the Company has classified the contingent consideration liability within Level 3 of the fair value hierarchy outlined in ASC 820, Fair Value Measurements . Increases in the expected payout under a contingent consideration arrangement contribute to increases in the fair value of the related liability. Conversely, decreases in the expected payout under a contingent consideration arrangement contribute to decreases in the fair value of the related liability. Changes in assumptions could have an impact on the fair value of the contingent consideration, which has a maximum payout of C $10.0 million (approximately $7.6 million ). The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2018 : Fair Value Measurement at Reporting Date Using (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 4.4 $ 4.4 Interest rate swap 2.9 2.9 Liabilities: Contingent consideration 6.5 6.5 The following table provides a roll-forward of the fair value of recurring Level 3 fair value measurements in the three months ended June 30, 2018 and 2017 : (in millions) 2018 2017 Contingent consideration liability, at April 1 $ 6.4 $ 5.4 Foreign currency translation (0.1 ) — Total losses included in earnings (a) 0.2 0.3 Contingent consideration liability, at June 30 $ 6.5 $ 5.7 (a) Changes in the fair value of contingent consideration liabilities are included as a component of Acquisition and integration-related expenses within the Condensed Consolidated Statements of Operations. The following table provides a roll-forward of the fair value of recurring Level 3 fair value measurements in the six months ended June 30, 2018 and 2017 : (in millions) 2018 2017 Contingent consideration liability, at January 1 $ 6.3 $ 5.1 Foreign currency translation (0.2 ) 0.1 Total losses included in earnings (a) 0.4 0.5 Contingent consideration liability, at June 30 $ 6.5 $ 5.7 (a) Changes in the fair value of contingent consideration liabilities are included as a component of Acquisition and integration-related expenses within the Condensed Consolidated Statements of Operations. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Organization and Description of the Business | Organization and Description of the Business Federal Signal Corporation was founded in 1901 and was reincorporated as a Delaware corporation in 1969. References herein to the “Company,” “we,” “our” or “us” refer collectively to Federal Signal Corporation and its subsidiaries. Products manufactured and supplied, and services rendered by the Company are divided into two operating segments: the Environmental Solutions Group and the Safety and Security Systems Group. The individual operating businesses are organized as such because they share certain characteristics, including technology, marketing, distribution and product application, which create long-term synergies. The Company’s reportable segments are consistent with its operating segments. These segments are discussed in Note 10 – Segment Information. |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited condensed consolidated financial statements represent the consolidation of Federal Signal Corporation and its subsidiaries included herein and have been prepared by the Company pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures presented herein are adequate to ensure the information presented is not misleading. Except as otherwise noted, these condensed consolidated financial statements have been prepared in accordance with the Company’s accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , and should be read in conjunction with those consolidated financial statements and the notes thereto. These condensed consolidated financial statements include all normal and recurring adjustments that we considered necessary to present a fair statement of our results of operations, financial condition and cash flow. Intercompany balances and transactions have been eliminated in consolidation. In addition, certain prior year amounts have been reclassified to conform to current year presentation. The results reported in these condensed consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for the entire year. While we label our quarterly information using a calendar convention whereby our first, second and third quarters are labeled as ending on March 31, June 30 and September 30, respectively, it is our longstanding practice to establish interim quarterly closing dates based on a 13-week period ending on a Saturday, with our fiscal year ending on December 31. The effects of this practice are not material and exist only within a reporting year. |
Recent Accounting Pronouncements and Accounting Changes | Recent Accounting Pronouncements and Accounting Changes In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (“Topic 606”) , which supersedes the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition . Topic 606 is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Topic 606 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The Company adopted this guidance effective January 1, 2018 using the modified retrospective transition method. See Note 2 – Revenue Recognition for further details. In February 2016, the FASB issued ASU No. 2016-02, Leases (“Topic 842”) , which supersedes the lease accounting requirements in ASC 840, Leases (“Topic 840”) . Topic 842 requires organizations that are lessees in operating lease arrangements to recognize right-of-use assets and lease liabilities on the balance sheet and requires disclosure of key qualitative and quantitative information about leasing arrangements by both lessors and lessees. Topic 842 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. As originally issued, entities would have been required to recognize and measure operating leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , which provides entities with an alternative transition method that permits application of the new guidance at the beginning of the period of adoption, with comparative periods continuing to be reported under Topic 840. In preparation for the adoption of the new standard, the Company has established a project management team responsible for the implementation of Topic 842. The project management team is currently assessing the transition methods and impact that the adoption of this guidance will have on the Company’s consolidated financial statements. This assessment includes the evaluation of the Company’s current lease contracts and other contracts that may contain lease components. In addition, the Company is in the process of designing and implementing internal controls over gathering and reporting the information required to support the expanded disclosure requirements. Based on the implementation procedures performed to date, in addition to the expanded disclosure requirements, the Company currently anticipates the most significant adoption impacts will include (i) the recognition of right-of-use assets and lease liabilities on its consolidated balance sheets, and (ii) the recognition of the remaining deferred gain associated with the sale-leaseback transactions that the Company entered into in July 2008 for its Elgin, Illinois and University Park, Illinois plant locations as a cumulative effect adjustment to opening retained earnings. As disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , the deferred gain as of December 31, 2017 totaled $10.6 million and is currently being amortized over the 15-year life of the respective leases. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Payments , which provides additional guidance on the financial statement presentation of certain activities in the statement of cash flows. The activities addressed by this guidance that may be relevant to the Company include cash payments for debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and proceeds from the settlement of corporate-owned life insurance policies, and the application of the predominance principle. The amendments in this ASU are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The amendments in this ASU should be applied using a retrospective transition method to each period presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. The Company adopted this guidance effective January 1, 2018 and concluded that it did not have a material impact on its historical cash flow presentation. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740) , Intra-Entity Transfers of Assets Other Than Inventory . This guidance requires the income tax consequences of an intra-entity transfer of an asset other than inventory to be recognized when the transfer occurs, instead of when the asset is sold to an outside party. The pronouncement is effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods, with early adoption permitted. The amendments in this ASU should be applied on a modified retrospective basis, with an adjustment reflecting the cumulative effect of adoption being recorded directly to retained earnings as of the beginning of the period of adoption. The Company adopted this guidance effective January 1, 2018 and concluded that it did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment , which eliminates the second step of the two-step quantitative approach for testing goodwill for potential impairment. An entity will therefore perform the goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and recognize an impairment charge for the amount by which the carrying amount exceeds the fair value, not to exceed the total amount of goodwill allocated to the reporting unit. An entity still has the option to perform a qualitative assessment to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for fiscal years beginning after December 15, 2019 on a prospective basis, with early adoption permitted. The Company adopted this guidance effective January 1, 2018, and will be applying the revised guidance prospectively to future goodwill impairment tests. In March 2017, the FASB issued ASU No. 2017-07, Compensation – Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . This guidance requires that entities present the service cost component of net periodic pension expense in the same income statement line items as other employee compensation costs. All other components of net periodic pension cost should be reported separately from the service cost component and outside a subtotal of operating income. The Company adopted this guidance effective January 1, 2018 following the retrospective method of adoption. The Condensed Consolidated Statements of Operations have been recast to present components of net periodic pension cost other than service cost within Other expense (income), net . The following table summarizes the impact of ASU 2017-07 on the Company’s previously reported Condensed Consolidated Statements of Operations: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in millions) As Reported Impact of Adoption As Adjusted As Reported Impact of Adoption As Adjusted Selling, engineering, general and administrative expenses $ 34.9 $ (0.1 ) $ 34.8 $ 66.4 $ (0.2 ) $ 66.2 Other expense (income), net (0.2 ) 0.1 (0.1 ) (0.5 ) 0.2 (0.3 ) In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities , which intends to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and presentation of hedge results. The amendments also make certain targeted improvements to simplify the application of the hedge accounting guidance by easing certain documentation and assessment requirements. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this ASU should be applied on a modified retrospective or prospective basis, depending on the area covered by the update. The Company adopted this guidance effective January 1, 2018 and concluded that it did not have a material impact on its consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, that permits entities to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the “2017 Tax Act”) to retained earnings. ASU 2018-12 is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The amendments in this ASU may be applied retrospectively or in the period of adoption. The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on the accounting for the tax impact of the 2017 Tax Act. Under SAB 118, a company that has not completed its accounting for the effects of the 2017 Tax Act by its financial reporting deadline may report provisional amounts based on reasonable estimates for items for which the accounting is incomplete. Those amounts will be subject to adjustment during a measurement period of up to one year. As discussed in Note 5 – Income Taxes, the condensed consolidated financial statements for the three and six months ended June 30, 2018 include the Company’s provisional estimates of the impact of the 2017 Tax Act, in accordance with SAB 118. The Company may adjust the provisional amounts throughout the measurement period as the Company’s calculations are refined and additional interpretive guidance becomes available. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and (iii) the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions are used for, but are not limited to, revenue recognition, workers’ compensation and product liability reserves, asset impairment, pension and other post-retirement benefit obligations, income tax contingency accruals and valuation allowances, and litigation-related accruals. Actual results could differ from those estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized when performance obligations under the terms of a contract with the customer are satisfied; generally this occurs at a point in time, with the transfer of control of the Company’s products or services to customers. For most of the Company’s product sales, these criteria are met at the time the product is shipped; however, occasionally control passes later or earlier than shipment due to customer contract or letter of credit terms. In circumstances where credit is extended, payment terms generally range from 30 to 120 days and customer deposits may be required. Revenue is measured as the amount of consideration the Company expects to be entitled to in exchange for transferring products or providing services. Expected returns and allowances are estimated and recognized based primarily on an analysis of historical experience, with Net sales presented net of such returns and allowances. The Company enters into sales arrangements that may provide for multiple performance obligations to a customer. These arrangements may include software and non-software components that function together to deliver the products’ essential functionality. The Company identifies all performance obligations that are to be delivered separately under the sales arrangement and allocates revenue to each performance obligation based on its relative standalone selling price. The Company uses an observable price to determine the standalone selling price or a cost plus margin approach when one is not available. In general, performance obligations include hardware, integration and installation services. The allocated revenue for each performance obligation is recognized as such performance obligations are satisfied. Net sales include sales of products and billed freight related to product sales. Freight has not historically comprised a material component of Net sales . The Company has elected to account for such shipping and handling activities as a fulfillment cost and not as a separate performance obligation. Taxes collected from customers and remitted to governmental authorities are recorded on a net basis and are excluded from Net sales . |
Fair Value Measurements | The Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are developed based on market data obtained from independent sources, while unobservable inputs reflect the Company’s assumptions about valuation based on the best information available in the circumstances. The three levels of inputs are classified as follows: • Level 1 — quoted prices in active markets for identical assets or liabilities; • Level 2 — observable inputs, other than quoted prices included in Level 1, such as quoted prices for markets that are not active, or other inputs that are observable or can be corroborated by observable market data; and • Level 3 — unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities, including certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. In determining fair value, the Company uses various valuation approaches within the fair value measurement framework. The valuation methodologies used for the Company’s assets and liabilities measured at fair value and their classification in the valuation hierarchy are summarized below: Cash Equivalents Cash equivalents primarily consist of time-based deposits and interest-bearing instruments with maturities of three months or less. The Company classified cash equivalents as Level 1 due to the short-term nature of these instruments and measured the fair value based on quoted prices in active markets for identical assets. Interest Rate Swap As described in Note 4 – Debt, the Company entered into an interest rate swap as a means of fixing the floating interest rate component on a portion of its floating-rate debt. The Company classified the interest rate swap as Level 2 due to the use of a discounted cash flow model based on the terms of the contract and the interest rate curve (Level 2 inputs) to calculate the fair value of the swap. Contingent Consideration The Company has a contingent obligation to transfer cash to the former owners of JJE if specified financial results are met over future reporting periods (i.e., an earn-out). Liabilities for contingent consideration are measured at fair value each reporting period, with the acquisition-date fair value included as part of the consideration transferred. Subsequent changes in fair value are recorded as a component of Acquisition and integration-related expenses on the Condensed Consolidated Statements of Operations. The Company uses an income approach to value the contingent consideration obligation based on future financial performance, which is determined based on the present value of expected future cash flows. Due to the lack of relevant observable market data over fair value inputs, the Company has classified the contingent consideration liability within Level 3 of the fair value hierarchy outlined in ASC 820, Fair Value Measurements . Increases in the expected payout under a contingent consideration arrangement contribute to increases in the fair value of the related liability. Conversely, decreases in the expected payout under a contingent consideration arrangement contribute to decreases in the fair value of the related liability. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table summarizes the impact of ASU 2017-07 on the Company’s previously reported Condensed Consolidated Statements of Operations: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 (in millions) As Reported Impact of Adoption As Adjusted As Reported Impact of Adoption As Adjusted Selling, engineering, general and administrative expenses $ 34.9 $ (0.1 ) $ 34.8 $ 66.4 $ (0.2 ) $ 66.2 Other expense (income), net (0.2 ) 0.1 (0.1 ) (0.5 ) 0.2 (0.3 ) The following table summarizes the impact of the adoption of Topic 606 on the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 (in millions) As Reported Balances Without Adoption of Topic 606 Effect of Change As Reported Balances Without Adoption of Topic 606 Effect of Change Net sales $ 291.0 $ 295.3 $ (4.3 ) $ 540.7 $ 548.2 $ (7.5 ) Cost of sales 211.8 216.1 (4.3 ) 399.6 407.1 (7.5 ) Gross profit $ 79.2 $ 79.2 $ — $ 141.1 $ 141.1 $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disaggregation of Revenue [Abstract] | |
Net Sales Disaggregated By Geographic Region Based On The Location Of The End Customer And By Major Product Line | The following table presents the Company’s Net sales disaggregated by geographic region, based on the location of the end customer, and by major product line: (in millions) Three Months Ended Six Months Ended Geographic Region: U.S. $ 220.7 $ 417.3 Canada 45.8 78.2 Europe/Other 24.5 45.2 Total net sales $ 291.0 $ 540.7 Major Product Line: Environmental Solutions Vehicles and equipment (a) $ 185.2 $ 340.8 Parts 32.4 62.2 Rental income (b) 11.6 19.4 Other (c) 4.1 7.5 Total $ 233.3 $ 429.9 Safety and Security Systems Public safety and security equipment $ 36.7 $ 67.3 Industrial signaling equipment 13.5 26.7 Warning systems 7.5 16.8 Total $ 57.7 $ 110.8 Total net sales $ 291.0 $ 540.7 (a) Includes net sales from the sale of new and used vehicles and equipment, including sales of rental equipment. (b) Represents income from vehicle and equipment lease arrangements with customers, recognized in accordance with Topic 840. (c) Primarily includes revenues from services such as maintenance and repair work and the sale of extended warranty contracts. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The following table summarizes the components of Inventories : (in millions) June 30, December 31, Finished goods $ 73.7 $ 74.3 Raw materials 61.7 52.6 Work in process 12.3 10.3 Total inventories $ 147.7 $ 137.2 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Components of Long-Term Borrowings and Capital Lease Obligations | The following table summarizes the components of Long-term borrowings and capital lease obligations : (in millions) June 30, December 31, 2017 Amended 2016 Credit Agreement (a) $ 247.3 $ 277.0 Capital lease obligations 0.8 0.7 Total long-term borrowings and capital lease obligations, including current portion 248.1 277.7 Less: Current capital lease obligations 0.3 0.3 Total long-term borrowings and capital lease obligations $ 247.8 $ 277.4 (a) Defined as the Amended and Restated Credit Agreement, dated January 27, 2016, as amended on June 2, 2017. |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | The following table summarizes the carrying amounts and estimated fair values of the Company’s long-term borrowings: June 30, 2018 December 31, 2017 (in millions) Notional Amount Fair Value Notional Amount Fair Value Long-term borrowings (a) $ 248.1 $ 248.1 $ 277.7 $ 277.7 (a) Long-term borrowings includes current portions of long-term debt and current portions of capital lease obligations of $0.3 million and $0.3 million as of June 30, 2018 and December 31, 2017 , respectively. |
Pensions (Tables)
Pensions (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Summary of Components of Net Postretirement Pensions Expense | The following table summarizes the components of net postretirement pension expense (benefit): U.S. Benefit Plan Non-U.S. Benefit Plan Three Months Ended Six Months Ended Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 2018 2017 2018 2017 Service cost $ — $ — $ — $ — $ — $ 0.1 $ 0.1 $ 0.1 Interest cost 1.6 1.9 3.2 3.8 0.4 0.4 0.7 0.7 Amortization of actuarial loss 0.7 0.6 1.5 1.2 0.1 0.1 0.3 0.3 Expected return on plan assets (2.2 ) (2.4 ) (4.4 ) (4.8 ) (0.6 ) (0.5 ) (1.2 ) (1.0 ) Net postretirement pension expense (benefit) $ 0.1 $ 0.1 $ 0.3 $ 0.2 $ (0.1 ) $ 0.1 $ (0.1 ) $ 0.1 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability | The following table summarizes the changes in the Company’s warranty liabilities during the six months ended June 30, 2018 and 2017 : (in millions) 2018 2017 Balance at January 1 $ 8.4 $ 6.4 Provisions to expense 3.5 2.3 Acquisitions — 1.5 Payments (3.2 ) (2.8 ) Balance at June 30 $ 8.7 $ 7.4 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income to Basic and Diluted EPS | The following table reconciles Net income to basic and diluted EPS: Three Months Ended Six Months Ended (in millions, except per share data) 2018 2017 2018 2017 Income from continuing operations $ 26.9 $ 11.5 $ 39.8 $ 18.7 Loss from discontinued operations and disposal, net of tax — (0.1 ) — — Net income $ 26.9 $ 11.4 $ 39.8 $ 18.7 Weighted average shares outstanding – Basic 59.9 59.7 59.9 59.7 Dilutive effect of common stock equivalents 1.1 0.6 1.0 0.6 Weighted average shares outstanding – Diluted 61.0 60.3 60.9 60.3 Basic earnings per share: Earnings from continuing operations $ 0.45 $ 0.19 $ 0.67 $ 0.31 Loss from discontinued operations and disposal, net of tax — — — — Net earnings per share $ 0.45 $ 0.19 $ 0.67 $ 0.31 Diluted earnings per share: Earnings from continuing operations $ 0.44 $ 0.19 $ 0.65 $ 0.31 Loss from discontinued operations and disposal, net of tax — — — — Net earnings per share $ 0.44 $ 0.19 $ 0.65 $ 0.31 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Changes in Each Component of Accumulated Other Comprehensive Loss | The following tables summarize the changes in each component of Accumulated other comprehensive loss , net of tax: (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at April 1, 2018 $ (75.3 ) $ (0.5 ) $ 1.8 $ (74.0 ) Other comprehensive income (loss) before reclassifications 1.1 (5.2 ) 0.3 (3.8 ) Amounts reclassified from accumulated other comprehensive loss 0.6 — (0.1 ) 0.5 Net current-period other comprehensive income (loss) 1.7 (5.2 ) 0.2 (3.3 ) Balance at June 30, 2018 $ (73.6 ) $ (5.7 ) $ 2.0 $ (77.3 ) (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at April 1, 2017 $ (78.8 ) $ (11.8 ) $ — $ (90.6 ) Other comprehensive (loss) income before reclassifications (0.6 ) 5.0 0.2 4.6 Amounts reclassified from accumulated other comprehensive loss 0.5 — — 0.5 Net current-period other comprehensive (loss) income (0.1 ) 5.0 0.2 5.1 Balance at June 30, 2017 $ (78.9 ) $ (6.8 ) $ 0.2 $ (85.5 ) (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at January 1, 2018 $ (75.4 ) $ (2.5 ) $ 1.0 $ (76.9 ) Other comprehensive income (loss) before reclassifications 0.4 (3.2 ) 1.1 (1.7 ) Amounts reclassified from accumulated other comprehensive loss 1.4 — (0.1 ) 1.3 Net current-period other comprehensive income (loss) 1.8 (3.2 ) 1.0 (0.4 ) Balance at June 30, 2018 $ (73.6 ) $ (5.7 ) $ 2.0 $ (77.3 ) (in millions) (a) Actuarial Losses Foreign Unrealized Total Balance at January 1, 2017 $ (79.0 ) $ (13.0 ) $ — $ (92.0 ) Other comprehensive (loss) income before reclassifications (0.9 ) 6.2 0.2 5.5 Amounts reclassified from accumulated other comprehensive loss 1.0 — — 1.0 Net current-period other comprehensive income 0.1 6.2 0.2 6.5 Balance at June 30, 2017 $ (78.9 ) $ (6.8 ) $ 0.2 $ (85.5 ) (a) Amounts in parentheses indicate losses. |
Reclassification out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified from Accumulated other comprehensive loss , net of tax, in the three months ended June 30, 2018 and 2017 and the affected line item in the Condensed Consolidated Statements of Operations: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in Condensed Consolidated Statements of Operations (a) 2018 2017 (in millions) (b) Amortization of actuarial losses of defined benefit pension plans $ (0.8 ) $ (0.7 ) Other expense (income), net Interest rate swap 0.2 — Interest expense Total before tax (0.6 ) (0.7 ) Income tax benefit 0.1 0.2 Income tax expense Total reclassifications for the period, net of tax $ (0.5 ) $ (0.5 ) (a) Continuing operations only. (b) Amounts in parentheses indicate losses. The following table summarizes the amounts reclassified from Accumulated other comprehensive loss , net of tax, in the six months ended June 30, 2018 and 2017 and the affected line item in the Condensed Consolidated Statements of Operations: Details about Accumulated Other Comprehensive Loss Components Amount Reclassified from Accumulated Other Comprehensive Loss Affected Line Item in Condensed Consolidated Statements of Operations (a) 2018 2017 (in millions) (b) Amortization of actuarial losses of defined benefit pension plans $ (1.8 ) $ (1.5 ) Other expense (income), net Interest rate swap 0.2 — Interest expense Total before tax (1.6 ) (1.5 ) Income tax benefit 0.3 0.5 Income tax expense Total reclassifications for the period, net of tax $ (1.3 ) $ (1.0 ) (a) Continuing operations only. (b) Amounts in parentheses indicate losses. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Net Sales, Operating Income (Loss), and Total Assets by Segment | The following tables summarize the Company’s continuing operations by segment, including Net sales , Operating income (loss), and Total assets : Three Months Ended Six Months Ended (in millions) 2018 2017 2018 2017 Net sales: Environmental Solutions $ 233.3 $ 174.3 $ 429.9 $ 302.1 Safety and Security Systems 57.7 50.1 110.8 100.1 Total net sales $ 291.0 $ 224.4 $ 540.7 $ 402.2 Operating income (loss): Environmental Solutions $ 37.2 $ 21.0 $ 57.8 $ 31.3 Safety and Security Systems 8.2 5.6 14.3 12.0 Corporate and eliminations (7.3 ) (7.8 ) (14.4 ) (13.1 ) Total operating income 38.1 18.8 57.7 30.2 Interest expense 2.5 1.3 5.0 1.9 Other expense (income), net 0.4 (0.1 ) 0.5 (0.3 ) Income before income taxes $ 35.2 $ 17.6 $ 52.2 $ 28.6 (in millions) As of As of December 31, 2017 Total assets: Environmental Solutions $ 776.8 $ 746.4 Safety and Security Systems 210.4 211.8 Corporate and eliminations 28.5 33.6 Total assets of continuing operations 1,015.7 991.8 Total assets of discontinued operations 0.5 0.5 Total assets $ 1,016.2 $ 992.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities | The following table summarizes the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2018 : Fair Value Measurement at Reporting Date Using (in millions) Level 1 Level 2 Level 3 Total Assets: Cash equivalents $ 4.4 $ 4.4 Interest rate swap 2.9 2.9 Liabilities: Contingent consideration 6.5 6.5 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a roll-forward of the fair value of recurring Level 3 fair value measurements in the three months ended June 30, 2018 and 2017 : (in millions) 2018 2017 Contingent consideration liability, at April 1 $ 6.4 $ 5.4 Foreign currency translation (0.1 ) — Total losses included in earnings (a) 0.2 0.3 Contingent consideration liability, at June 30 $ 6.5 $ 5.7 (a) Changes in the fair value of contingent consideration liabilities are included as a component of Acquisition and integration-related expenses within the Condensed Consolidated Statements of Operations. The following table provides a roll-forward of the fair value of recurring Level 3 fair value measurements in the six months ended June 30, 2018 and 2017 : (in millions) 2018 2017 Contingent consideration liability, at January 1 $ 6.3 $ 5.1 Foreign currency translation (0.2 ) 0.1 Total losses included in earnings (a) 0.4 0.5 Contingent consideration liability, at June 30 $ 6.5 $ 5.7 (a) Changes in the fair value of contingent consideration liabilities are included as a component of Acquisition and integration-related expenses within the Condensed Consolidated Statements of Operations. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Segment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |||||
Number of operating segments | Segment | 2 | ||||
Deferred gain on sale-leaseback transactions | $ 10.6 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Selling, engineering, general and administrative expenses | $ 40.7 | $ 34.8 | $ 82.5 | $ 66.2 | |
Other expense (income), net | $ 0.4 | (0.1) | $ 0.5 | (0.3) | |
ASU 2017-07 | Selling, engineering, general and administrative expenses | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of Adoption | (0.1) | (0.2) | |||
ASU 2017-07 | Other expense (income), net | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Impact of Adoption | 0.1 | 0.2 | |||
As Reported | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Selling, engineering, general and administrative expenses | 34.9 | 66.4 | |||
Other expense (income), net | $ (0.2) | $ (0.5) |
Revenue Recognition - Impact of
Revenue Recognition - Impact of Adoption of Topic 606 (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | $ 291 | $ 224.4 | $ 540.7 | $ 402.2 |
Cost of sales | 211.8 | 169.7 | 399.6 | 303.9 |
Gross profit | 79.2 | $ 54.7 | 141.1 | $ 98.3 |
Balances Without Adoption of Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | 295.3 | 548.2 | ||
Cost of sales | 216.1 | 407.1 | ||
Gross profit | 79.2 | 141.1 | ||
Effect of Change | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Net sales | (4.3) | (7.5) | ||
Cost of sales | (4.3) | (7.5) | ||
Gross profit | $ 0 | $ 0 | ||
Environmental Solutions | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Percent change in net sales due to adoption of Topic 606 | (1.00%) |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue From Contracts With Customers (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 291 | $ 540.7 | |
U.S. | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 220.7 | 417.3 | |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 45.8 | 78.2 | |
Europe/Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 24.5 | 45.2 | |
Environmental Solutions | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 233.3 | 429.9 | |
Environmental Solutions | Vehicles and equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 185.2 | 340.8 |
Environmental Solutions | Parts | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 32.4 | 62.2 | |
Environmental Solutions | Rental income | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 11.6 | 19.4 |
Environmental Solutions | Other | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [3] | 4.1 | 7.5 |
Safety and Security Systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 57.7 | 110.8 | |
Safety and Security Systems | Public safety and security equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 36.7 | 67.3 | |
Safety and Security Systems | Industrial signaling equipment | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 13.5 | 26.7 | |
Safety and Security Systems | Warning systems | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 7.5 | $ 16.8 | |
[1] | Includes net sales from the sale of new and used vehicles and equipment, including sales of rental equipment. | ||
[2] | Represents income from vehicle and equipment lease arrangements with customers, recognized in accordance with Topic 840. | ||
[3] | Primarily includes revenues from services such as maintenance and repair work and the sale of extended warranty contracts. |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Contract with Customer, Liability [Abstract] | ||
Contract liabilities | $ 10.9 | $ 8.9 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Description of payment terms | In circumstances where credit is extended, payment terms generally range from 30 to 120 days and customer deposits may be required. |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 73.7 | $ 74.3 |
Raw materials | 61.7 | 52.6 |
Work in process | 12.3 | 10.3 |
Total inventories | $ 147.7 | $ 137.2 |
Debt - Summary of Components of
Debt - Summary of Components of Long-Term Borrowings and Capital Lease Obligations (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Amended 2016 Credit Agreement | [1] | $ 247.3 | $ 277 |
Capital lease obligations | 0.8 | 0.7 | |
Total long-term borrowings and capital lease obligations, including current portion | 248.1 | 277.7 | |
Less: Current capital lease obligations | 0.3 | 0.3 | |
Total long-term borrowings and capital lease obligations | $ 247.8 | $ 277.4 | |
[1] | Defined as the Amended and Restated Credit Agreement, dated January 27, 2016, as amended on June 2, 2017. |
Debt - Summary of Carrying Amou
Debt - Summary of Carrying Amounts and Estimated Fair Values of Long-Term Borrowings (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Long-term borrowings | $ 248.1 | $ 277.7 | |
Current portion of long-term borrowings and capital lease obligations | 0.3 | 0.3 | |
Notional Amount | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | 248.1 | 277.7 |
Fair Value | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | [1] | $ 248.1 | $ 277.7 |
[1] | Long-term borrowings includes current portions of long-term debt and current portions of capital lease obligations of $0.3 million and $0.3 million as of June 30, 2018 and December 31, 2017, respectively. |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||||
Fair value of interest rate swap | $ 2,900,000 | $ 2,900,000 | |||
Unrealized gain (loss) on interest rate cash flow hedges, pretax, accumulated other comprehensive income (loss) | 300,000 | $ 400,000 | 1,300,000 | $ 400,000 | |
Non-US lines of credit | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowings | 100,000 | 100,000 | |||
Credit facility outstanding amount | 0 | 0 | $ 0 | ||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Credit facility outstanding amount | 150,000,000 | 150,000,000 | |||
Amended 2016 Credit Agreement | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Credit facility maximum borrowings | 400,000,000 | 400,000,000 | |||
Credit facility outstanding amount | 247,300,000 | 247,300,000 | 277,000,000 | ||
Remaining borrowing capacity | 140,300,000 | 140,300,000 | 105,900,000 | ||
Proceeds from credit facility | 8,000,000 | 243,000,000 | |||
Gross payments under credit facility | $ 34,600,000 | $ 20,000,000 | |||
Amended 2016 Credit Agreement | Revolving Credit Facility | Minimum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.15% | ||||
Amended 2016 Credit Agreement | Revolving Credit Facility | Maximum | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, unused capacity, commitment fee percentage | 0.30% | ||||
Amended 2016 Credit Agreement | Revolving Credit Facility | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings margin range | 0.00% | ||||
Amended 2016 Credit Agreement | Revolving Credit Facility | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings margin range | 1.25% | ||||
Amended 2016 Credit Agreement | Revolving Credit Facility | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings margin range | 1.00% | ||||
Amended 2016 Credit Agreement | Revolving Credit Facility | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Base rate borrowings margin range | 2.25% | ||||
Amended 2016 Credit Agreement | Letter of Credit | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 12,400,000 | $ 12,400,000 | $ 17,100,000 | ||
Interest Rate Swap | |||||
Debt Instrument [Line Items] | |||||
Interest rate swap, notional amount | $ 150,000,000 | $ 150,000,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 8.3 | $ 6.1 | $ 12.4 | $ 9.9 |
Excess tax benefit from stock compensation activity | $ 0.5 | $ 0.5 | ||
Effective tax rate | 23.60% | 34.70% | 23.80% | 34.60% |
2017 Tax Act transition tax, rate applied to cash | 15.50% | 15.50% | ||
2017 Tax Act transition tax, rate applied to earnings in excess of cash | 8.00% | 8.00% |
Pensions - Summary of Component
Pensions - Summary of Components of Net Postretirement Pension Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
U.S. Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 1.6 | 1.9 | 3.2 | 3.8 |
Amortization of actuarial loss | 0.7 | 0.6 | 1.5 | 1.2 |
Expected return on plan assets | (2.2) | (2.4) | (4.4) | (4.8) |
Net postretirement pension expense (benefit) | 0.1 | 0.1 | 0.3 | 0.2 |
Non-U.S. Benefit Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0.1 | 0.1 | 0.1 |
Interest cost | 0.4 | 0.4 | 0.7 | 0.7 |
Amortization of actuarial loss | 0.1 | 0.1 | 0.3 | 0.3 |
Expected return on plan assets | (0.6) | (0.5) | (1.2) | (1) |
Net postretirement pension expense (benefit) | $ (0.1) | $ 0.1 | $ (0.1) | $ 0.1 |
Pensions - Additional Informati
Pensions - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
U.S. Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 2.7 | $ 2.7 |
Estimated employer contributions in current year | 6.9 | |
Non-U.S. Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 0.7 | $ 0.4 |
Estimated employer contributions in current year | $ 1.4 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Changes in Warranty Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at January 1 | $ 8.4 | $ 6.4 |
Provisions to expense | 3.5 | 2.3 |
Acquisitions | 0 | 1.5 |
Payments | (3.2) | (2.8) |
Balance at June 30 | $ 8.7 | $ 7.4 |
Minimum | ||
Product Warranty Liability [Line Items] | ||
Warranty maturity periods | 1 year | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Warranty maturity periods | 5 years |
Commitments and Contingencies44
Commitments and Contingencies - Additional Information (Details) $ in Millions | Feb. 05, 2018Plaintiff | Jun. 28, 2017Plaintiff | Feb. 24, 2017Plaintiff | Jun. 03, 2016CAD ($) | May 13, 2016plaintiffcase | Jan. 12, 2015Plaintiff | Sep. 17, 2014Plaintiffcase | Nov. 30, 2012Plaintiff | Apr. 29, 2011USD ($) | Apr. 22, 2011USD ($) | Mar. 31, 2018Plaintiff | Mar. 31, 2018plaintiff | Nov. 30, 2017plaintiff | Aug. 31, 2017Plaintiffplaintiff | Dec. 31, 2016Plaintiff | May 31, 2016Plaintiff | Nov. 30, 2015Plaintiff | Feb. 28, 2015Plaintiff | Jan. 31, 2015PlaintiffCasecase | Dec. 31, 2014Plaintiff | Mar. 31, 2014Plaintiffplaintiff | Dec. 31, 2012Plaintiff | Nov. 30, 2011Plaintiff | Jul. 31, 2013Plaintiff | Apr. 22, 2011Plaintiff | May 31, 2016Case | Dec. 31, 2015Plaintiffcase | Jun. 30, 2018USD ($)Plaintiffplaintiff | Jun. 30, 2017USD ($)Plaintiff | Oct. 31, 2016plaintiffCase | May 31, 2017plaintiff | Nov. 30, 2016plaintiff | Oct. 31, 2012PlaintiffCase | Jan. 31, 2016Case | Nov. 05, 2015Case | Mar. 31, 2014case | Dec. 31, 2017USD ($)plaintiff | Dec. 31, 2013plaintiff | Dec. 31, 2010Plaintiff | Dec. 31, 2010plaintiff | Dec. 31, 2010case | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($)Plaintiffplaintiffcase | Dec. 31, 2008Plaintiff | Jun. 30, 2014case | Dec. 31, 2009Plaintiff | Dec. 31, 2009Case | Dec. 31, 2009case | Dec. 31, 2004plaintiffcase | Jan. 04, 2011Plaintiff |
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental remediation reserve | $ | $ 400,000 | $ 500,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Estimated product liability obligations of the discontinued North American refuse truck body business | $ | 1,400,000 | $ 1,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding letters of credit and bonds | $ | $ 17,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1,180 | |||||||||||||||||||||||||||||||||||||||||||||||||
Gain contingency, unrecorded amount | $ | $ 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlement offer per eligible plaintiff who has already filed a lawsuit | $ | $ 700 | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlement offer per eligible plaintiff who has not already filed a lawsuit | $ | $ 300 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of firefighters considered as part of the settlement | 3,700 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs cases dismissed (plaintiff) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Reimbursement | $ | $ 200,000 | 300,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Circuit Court Of Cook County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 2,443 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of cases of plaintiff's claims (case) | 27 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of claimants settled (plaintiff) | 308 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | case | 6 | 33 | ||||||||||||||||||||||||||||||||||||||||||||||||
Court of Common Pleas, Philadelphia County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1 | 71 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of cases of plaintiff's claims (case) | 2 | 4 | 3 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of claims dismissed (case) | Case | 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Damages maximum amount | $ | $ 100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of claimants settled (plaintiff) | 1,125 | |||||||||||||||||||||||||||||||||||||||||||||||||
Litigation settlement | $ | $ 80,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | Case | 71 | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlement Agreement | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1,069 | |||||||||||||||||||||||||||||||||||||||||||||||||
Claims settled amount | $ | $ 3,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of claimants agreed for settlement | 93.00% | 95.02% | 95.02% | |||||||||||||||||||||||||||||||||||||||||||||||
Percentage of claimants agreed for settlement as per settlement agreement | 100.00% | |||||||||||||||||||||||||||||||||||||||||||||||||
Litigation settlement | $ | $ 3,600,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Supreme Court of Kings County New York | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | case | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Lackawanna Firefighter Plaintiffs | Lackawanna County Pennsylvania [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 70 | 263 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Outside Chicago Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 10 | 1,800 | ||||||||||||||||||||||||||||||||||||||||||||||||
Outside Chicago Firefighter Plaintiffs | Circuit Court Of Cook County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 1,800 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pennsylvania Firefighter Plaintiffs | Circuit Court Of Cook County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 74 | 299 | ||||||||||||||||||||||||||||||||||||||||||||||||
Chicago Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 3 | 3 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
Chicago Firefighter Plaintiffs | Minimum | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Chicago Firefighter Plaintiffs | Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 40 | |||||||||||||||||||||||||||||||||||||||||||||||||
Chicago Firefighter Plaintiffs | Circuit Court Of Cook County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Litigation settlement | $ | $ 700 | $ 400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||
Philadelphia Firefighter Plaintiffs | Court of Common Pleas, Philadelphia County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 55 | 1 | 4 | 70 | 3 | 75 | 20 | 100 | 9 | 9 | ||||||||||||||||||||||||||||||||||||||||
Number of claims dismissed (case) | case | 5 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of cases set for trial (case) | case | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | 4 | 2 | 9 | 20 | ||||||||||||||||||||||||||||||||||||||||||||||
District of Columbia Firefighter Plaintiffs | Federal Court, Eastern District of Pennsylvania | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 11 | 193 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | case | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
Outside Pennsylvania Firefighter Plaintiffs | Court of Common Pleas, Philadelphia County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | Case | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Pittsburgh Firefighter Plaintiffs | Allegheny County, Pennsylvania | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 247 | 6 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of claims dismissed (case) | 55 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Buffalo Firefighter Plaintiffs | Supreme Court of State of New York Erie County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 193 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | case | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||
New York City Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||
New York City Firefighter Plaintiffs | Supreme Court of State of New York, New York County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1 | 536 | 235 | |||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | Case | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
New York Kings County Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1 | |||||||||||||||||||||||||||||||||||||||||||||||||
New Jersey Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | Case | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
New Jersey Firefighter Plaintiffs | Superior Court of New Jersey, Union County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1 | 34 | ||||||||||||||||||||||||||||||||||||||||||||||||
Massachusetts Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 218 | 194 | ||||||||||||||||||||||||||||||||||||||||||||||||
Number of new claims filed (case) | Case | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Erie County Firefighter Plaintiffs | Court of Common Pleas, Philadelphia County | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 61 | |||||||||||||||||||||||||||||||||||||||||||||||||
Florida Firefighters Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | $ | 166 | |||||||||||||||||||||||||||||||||||||||||||||||||
Damages maximum amount | $ | $ 75,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
JJE | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred payment | $ | $ 8 | |||||||||||||||||||||||||||||||||||||||||||||||||
Property Lease Guarantee | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase obligation, single year potential cash payments | $ | 3,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase obligation, maximum potential cash payments | $ | $ 4,800,000 | |||||||||||||||||||||||||||||||||||||||||||||||||
Dismissed | Pittsburgh Firefighter Plaintiffs | Allegheny County, Pennsylvania | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Settlement Candidates | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1,090 | |||||||||||||||||||||||||||||||||||||||||||||||||
Chicago Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 1,770 | |||||||||||||||||||||||||||||||||||||||||||||||||
Erie County Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 33 | |||||||||||||||||||||||||||||||||||||||||||||||||
Responsive Settlement Candidates | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 717 | |||||||||||||||||||||||||||||||||||||||||||||||||
Remaining | Pittsburgh Firefighter Plaintiffs | Allegheny County, Pennsylvania | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | plaintiff | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||
Court of Common Pleas, Philadelphia County | Pittsburgh Firefighter Plaintiffs | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments Disclosure [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||
Number of plaintiffs (plaintiff) | 19 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Net Income to Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Income from continuing operations | $ 26.9 | $ 11.5 | $ 39.8 | $ 18.7 |
Loss from discontinued operations and disposal, net of tax | 0 | (0.1) | 0 | 0 |
Net income | $ 26.9 | $ 11.4 | $ 39.8 | $ 18.7 |
Weighted average shares outstanding - Basic (shares) | 59.9 | 59.7 | 59.9 | 59.7 |
Dilutive effect of common stock equivalents (shares) | 1.1 | 0.6 | 1 | 0.6 |
Weighted average shares outstanding - Diluted (shares) | 61 | 60.3 | 60.9 | 60.3 |
Basic earnings per share: | ||||
Earnings from continuing operations (usd per share) | $ 0.45 | $ 0.19 | $ 0.67 | $ 0.31 |
Loss from discontinued operations and disposal, net of tax (usd per share) | 0 | 0 | 0 | 0 |
Net earnings per share (usd per share) | 0.45 | 0.19 | 0.67 | 0.31 |
Diluted earnings per share: | ||||
Earnings from continuing operations (usd per share) | 0.44 | 0.19 | 0.65 | 0.31 |
Loss from discontinued operations and disposal, net of tax (usd per share) | 0 | 0 | 0 | 0 |
Net earnings per share (usd per share) | $ 0.44 | $ 0.19 | $ 0.65 | $ 0.31 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Stock Option | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of common stock excluded from calculation of diluted EPS (shares) | 0.3 | 0.7 | 0.3 | 1.2 |
Stockholders' Equity - Changes
Stockholders' Equity - Changes in Each Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | $ (76.9) | ||||
Net current-period other comprehensive (loss) income | $ (3.3) | $ 5.1 | (0.4) | $ 6.5 | |
Ending balance | (77.3) | (77.3) | |||
Actuarial Losses | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (75.3) | (78.8) | (75.4) | (79) |
Other comprehensive (loss) income before reclassifications | [1] | 1.1 | (0.6) | 0.4 | (0.9) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0.6 | 0.5 | 1.4 | 1 |
Net current-period other comprehensive (loss) income | [1] | 1.7 | (0.1) | 1.8 | 0.1 |
Ending balance | [1] | (73.6) | (78.9) | (73.6) | (78.9) |
Foreign Currency Translation | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (0.5) | (11.8) | (2.5) | (13) |
Other comprehensive (loss) income before reclassifications | [1] | (5.2) | 5 | (3.2) | 6.2 |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | [1] | (5.2) | 5 | (3.2) | 6.2 |
Ending balance | [1] | (5.7) | (6.8) | (5.7) | (6.8) |
Unrealized Gain on Derivatives | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | 1.8 | 0 | 1 | 0 |
Other comprehensive (loss) income before reclassifications | [1] | 0.3 | 0.2 | 1.1 | 0.2 |
Amounts reclassified from accumulated other comprehensive loss | [1] | (0.1) | 0 | (0.1) | 0 |
Net current-period other comprehensive (loss) income | [1] | 0.2 | 0.2 | 1 | 0.2 |
Ending balance | [1] | 2 | 0.2 | 2 | 0.2 |
Accumulated Other Comprehensive Loss | |||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||
Beginning balance | [1] | (74) | (90.6) | (76.9) | (92) |
Other comprehensive (loss) income before reclassifications | [1] | (3.8) | 4.6 | (1.7) | 5.5 |
Amounts reclassified from accumulated other comprehensive loss | [1] | 0.5 | 0.5 | 1.3 | 1 |
Net current-period other comprehensive (loss) income | [1] | (3.3) | 5.1 | (0.4) | 6.5 |
Ending balance | [1] | $ (77.3) | $ (85.5) | $ (77.3) | $ (85.5) |
[1] | Amounts in parentheses indicate losses. |
Stockholders' Equity - Reclassi
Stockholders' Equity - Reclassifications from Accumulated Other Comprehensive Loss (Details) - Amount Reclassified from Accumulated Other Comprehensive Loss - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of actuarial losses of defined benefit pension plans | [1],[2] | $ (0.8) | $ (0.7) | $ (1.8) | $ (1.5) |
Interest income on interest rate swap | [1],[2] | 0.2 | 0 | 0.2 | 0 |
Total before tax | [1] | (0.6) | (0.7) | (1.6) | (1.5) |
Income tax benefit | [1],[2] | 0.1 | 0.2 | 0.3 | 0.5 |
Total reclassifications for the period, net of tax | [1] | $ (0.5) | $ (0.5) | $ (1.3) | $ (1) |
[1] | Amounts in parentheses indicate losses. | ||||
[2] | Continuing operations only. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Dividends Payable [Line Items] | ||||||
Cash dividends declared per common share (usd per share) | $ 0.08 | $ 0.07 | $ 0.07 | $ 0.15 | $ 0.14 | |
Payments of common stock dividends | $ 4.8 | $ 4.2 | $ 4.2 | $ 9 | $ 8.4 | |
Subsequent Event | ||||||
Dividends Payable [Line Items] | ||||||
Cash dividends declared per common share (usd per share) | $ 0.08 |
Segment Information - Summary o
Segment Information - Summary of Net Sales, Operating Income (Loss), and Total Assets by Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Total net sales | $ 291 | $ 224.4 | $ 540.7 | $ 402.2 | |
Total operating income | 38.1 | 18.8 | 57.7 | 30.2 | |
Interest expense | 2.5 | 1.3 | 5 | 1.9 | |
Other expense (income), net | 0.4 | (0.1) | 0.5 | (0.3) | |
Income before income taxes | 35.2 | 17.6 | 52.2 | 28.6 | |
Total assets | 1,016.2 | 1,016.2 | $ 992.3 | ||
Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 1,015.7 | 1,015.7 | 991.8 | ||
Discontinued Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 0.5 | 0.5 | 0.5 | ||
Environmental Solutions | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 233.3 | 174.3 | 429.9 | 302.1 | |
Total operating income | 37.2 | 21 | 57.8 | 31.3 | |
Environmental Solutions | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 776.8 | 776.8 | 746.4 | ||
Safety and Security Systems | |||||
Segment Reporting Information [Line Items] | |||||
Total net sales | 57.7 | 50.1 | 110.8 | 100.1 | |
Total operating income | 8.2 | 5.6 | 14.3 | 12 | |
Safety and Security Systems | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | 210.4 | 210.4 | 211.8 | ||
Corporate And Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Total operating income | (7.3) | $ (7.8) | (14.4) | $ (13.1) | |
Corporate And Eliminations | Continuing Operations | |||||
Segment Reporting Information [Line Items] | |||||
Total assets | $ 28.5 | $ 28.5 | $ 33.6 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2018Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Fair Value Measurements - Asset
Fair Value Measurements - Asset and Liabilities Measured at Fair Value (Details) - Fair Value, Measurements, Recurring $ in Millions | Jun. 30, 2018USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cash equivalents | $ 4.4 |
Interest rate swap | 2.9 |
Contingent consideration | 6.5 |
Level 1 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Cash equivalents | 4.4 |
Level 2 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Interest rate swap | 2.9 |
Level 3 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Contingent consideration | $ 6.5 |
Fair Value Measurements - Unobs
Fair Value Measurements - Unobservable Input Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Contingent consideration liability, beginning balance | $ 6.4 | $ 5.4 | $ 6.3 | $ 5.1 | |
Foreign currency translation | (0.1) | 0 | (0.2) | 0.1 | |
Total losses included in earnings | [1] | 0.2 | 0.3 | 0.4 | 0.5 |
Contingent consideration liability, ending balance | $ 6.5 | $ 5.7 | $ 6.5 | $ 5.7 | |
[1] | Changes in the fair value of contingent consideration liabilities are included as a component of Acquisition and integration-related expenses within the Condensed Consolidated Statements of Operations. |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - Jun. 03, 2016 $ in Millions, $ in Millions | CAD ($) | USD ($) |
JJE | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent earn-out payment | $ 10 | $ 7.6 |